Religion Judaism Name Samuel Newhouse, | ||
Full Name Solomon Isadore Neuhaus Born May 24, 1895 ( 1895-05-24 ) New York City, NY, US Occupation Founder of Advance Publications Net worth USD $1.5 billion at the time of his death (approximately 1/1681th of US GNP) Spouse(s) Mitzi Epstein (1924–1979) Died August 29, 1979, New York City, New York, United States Children Samuel Irving Newhouse, Jr., Donald Newhouse Grandchildren Wynn Newhouse, Pamela Newhouse, Samuel Irving Newhouse III Similar People Samuel Irving Newhous, Donald Newhouse, Arthur Ochs Sulzberg, Conde Montrose Nast | ||
Resting place Baron Hirsch Cemetery Organizations founded Advance Publications | ||
Samuel Irving Newhouse Sr. (May 24, 1895 – August 29, 1979) was an American broadcasting businessman, magazine and newspaper publisher. He was the founder of Advance Publications.
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Early life
Newhouse was born Solomon Isadore Neuhaus in a tenement on the Lower East Side of Manhattan, the eldest of eight children born to Jewish immigrants. His father, Meier Neuhaus, was an immigrant from Vitebsk, Belarus; and his mother, Rose (née Arenfeldt), was from Austria-Hungary. Meier Neuhaus would later Americanize his name to Meyer Newhouse.
Although his father had studied to become a rabbi, he was unskilled and only worked occasionally due to poor health. The family moved to Bayonne, New Jersey where his mother supported the family by peddling linens and in 1908, his father abandoned the family for health reasons to live with his sister in Connecticut. Newhouse quit school and enrolled in a six-week bookkeeping course at the Gaffrey School in Manhattan which enabled him to secure a job as an office boy working for Hyman Lazarus, a lawyer, police court judge, and politician in Bayonne. At age sixteen, he was promoted to office manager of Lazarus' law firm.
Career
Noting Newhouse's work ethic and enthusiasm, Lazarus tasked Newhouse to manage the money-losing Bayonne Times (a local newspaper Lazarus had acquired a majority interest in due to an unpaid legal bill) allowing Newhouse to keep half of the profits if successful. Newhouse quickly determined that the paper was not earning enough fees from advertisements and personally solicited new customers while also assisting them in planning the timing of store sales. The paper returned to profitability and he received a 20 percent ownership interest as payment (after continued success, his share increased to 50 percent). Later, he decided to attend law school in the evenings and in 1916, he graduated from the New Jersey Law School (now Rutgers School of Law–Newark) in Newark, New Jersey. His career in the practice of law was short-lived: he was so humiliated after losing the one case he took to trial, he paid his client the full amount of the damages he had requested. Nevertheless, thanks to his support, Rutgers School of Law-Newark is presently housed in the S.I. Newhouse Center for Law and Justice.
In 1922, taking all his personal savings and partnering Lazarus, he bought 51 percent of the Staten Island Advance for $98,000 and soon returned the paper to profitability. In 1924, Lazarus died and he purchased Lazarus' share from his widow as well as the 49 percent that he did not own. Newhouse had found his calling and began to expand his empire purchasing, merging, and returning to profitability numerous papers.
Business strategy
Newhouse focused on purchasing bargain-priced papers in growing communities; he had no interest in starting papers or in unrelated ventures (he even declined an offer to purchase the New York Yankees). Typically, he would acquire a city's oldest newspaper and then purchase the city's second newspaper thereby allowing him to set advertising rates. Although he would generally promise to keep both papers in business and in competition, he typically would merge the two (which generally meant closing the afternoon paper and keeping the morning) effectively establishing a monopoly and then using the profits to purchase additional newspapers.
Newhouse largely ran his various interests out of a brown leather briefcase and kept its figures in his head, even as they grew into an empire of 20 newspapers, as well as numerous magazines, radio stations and television stations. He never had what could be called a formal headquarters; to this day Advance Publications' corporate address is the same as that of the Staten Island Advance.
Timeline of acquisitions
Personal life
He was married to arts patron and philanthropist Mitzi Epstein (April 30, 1902 – June 29, 1989), who grew up in an upper middle class, Jewish family on the Upper West Side, the daughter of a silk tie importer. They had two sons, Samuel Irving Newhouse Jr., known as Si Newhouse, chairman and CEO of Advance, and Donald Newhouse, president of Advance.
Samuel Newhouse resided in Manhattan for much of his life. His great-grandson, S.I. Newhouse IV, is featured in a documentary called Born Rich about the experience of growing up as the heir to one of the world's greatest fortunes. In 1942, he bought Greenlands, a working farm of 143 acres in Harbourton, Mercer County, New Jersey. In his privately published memoir, A Memo to my Children, he documented his often strained relationship with his two sons.
Death and legacy
Newhouse died in 1979, aged 84, in New York City of a stroke, and is buried in the Baron Hirsch Cemetery on Staten Island. Upon his death, he passed his voting common stock in the principal family company, Advance Publications, in trust to his six grandchildren and made his two sons the sole trustees.
One of the vessels of the Staten Island Ferry is also named after him. So was the S.I. Newhouse School of Public Communications at Syracuse University, and the S.I. Newhouse Center for Law and Justice at Rutgers School of Law – Newark. He was inducted into the Junior Achievement U.S. Business Hall of Fame in 1989.