The Charlton Distribution headquarters in Stamford, Connecticut were housed in a massive, brick-and-mortar building that smelled perpetually of old paper dust and machine oil.
Unlike the frantic, disorganized energy of the Marvel office or the minimalism of Duke's Manhattan office, Charlton looked more like a local company.
Duke Hauser and David Chen were seated in a darkly paneled conference room.
Across the long mahogany table sat Mr. Thomas Thorne, Charlton's General Counsel, and Mr. Howard Reynolds, the Head of National Logistics.
They were both men in their late fifties, dressed in suits that looked more durable than stylish, projecting a calm sense of being unbothered by the current situation.
Thorne smiled politely, a thin, meaningless gesture. "Gentlemen, thank you for making the trip. We understand your concerns about returns, but I want to assure you that the comic book distribution market is simply volatile."
"Our 60% return rate is, regrettably, the industry standard for high-volume, low-cost periodicals in the summer months."
Reynolds nodded sagely. "There are only so many hours in the day, Mr. Hauser. And frankly, the quality of packaging coming out of your new printer is… ambitious."
"These are thin paperbacks, not hardcover novels. Some damage is expected whether it is cause of water or some other unexpected accident."
Duke let Thorne and Reynolds settle into their complacent defense for a full minute.
Their defense was clear.
"It's not our fault, it's the market, and it's your product."
Duke didn't move. He simply nodded toward Chen.
"Mr. Chen has some updated documentation regarding those return rates, Mr. Thorne. I suggest you review them before we proceed with discussing the state of the market."
Chen, precise and quiet, slid four meticulously organized folders across the table.
They were clearly labeled, and specifically detailed the performance of the Chicago, Boston, and Atlanta hubs.
"Mr. Thorne, Mr. Reynolds," Chen began, his voice calm and authoritative, cutting through the room's ambient hum. "We appreciate your perspective on 'industry standards.'"
"However, we are not interested in industry standards; we are interested in contractual compliance, which requires the effective, timely, and undamaged delivery of product."
Chen tapped a folder with his index finger, "Prior to July 21st, our three most profitable regional hubs Chicago, Boston, and Atlanta were experiencing average returns of 62.5%."
"This number, as you correctly noted, includes damaged, misrouted, and unreturned product."
"This performance was abysmal, costing Charlton a massive loss of fees and costing Ithaca a financial issue in regards of printing costs."
He then slid another folder forward, allowing the executives a moment to register the difference.
"In here i have the performance after July 22nd, when Ithaca Comics implemented a tactical, short-term measure," Chen stated, keeping his tone purely observational.
"In these same three hubs, we contracted our own independent logistics specialists local haulers we sourced and paid directly to take possession of the product after it arrived at your regional transfer stations and deliver it directly to the newsstands."
Reynolds scoffed, leaning forward. "You circumvented our service? Mr. Hauser, that's potentially a breach of our exclusivity clause, not to mention a wild expenditure."
"It was an expenditure we incurred to mitigate your contractual failure to deliver product effectively," Duke interjected, stopping Chen with a slight hand gesture.
"We spent the money to showcase something. Now, let's look at the results."
Chen pointed to the crucial page in the second folder, the side-by-side comparison. "In the 21 days following implementation, the average return rate in those three hubs dropped from 62.5% to 19.3%."
"That is a 70% reduction in waste, achieved instantly, solely through the intervention of competent local logistics."
"The data proves, unequivocally, that the failure to deliver is systemic, localized to your company's final delivery protocols, and will be costing Ithaca millions in potential gross revenue."
The room temperature seemed to drop ten degrees.
Thorne's smooth smile vanished, replaced by a grim expression. Reynolds, the logistics man, looked visibly stunned.
"The numbers speak for themselves," Duke said, leaning forward now, his voice hardening. "The demand is there. The product is viable. Your service is not. You have two options."
Duke pushed a single, typewritten sheet across the table.
"Option One," Duke began, his eyes locking on Thorne. "Ithaca Comics will tolerate your current distribution quality for the remainder of our contract term."
"In exchange for this tolerance, you will immediately agree to two things: First, a 10% reduction in the per-unit distribution fee, to compensate us for the operational necessity of providing our own quality control, insurance, and management over your faulty system."
"Impossible," Thorne immediately responded without raising his voice. "That would be a massive reduction in our revenue stream!"
"The fee is compensation for a delivered service, Mr. Thorne," Chen countered coolly.
"If the service is only delivered 37.5% of the time, the fee is already too high. We are being generous and I'm sure a judge would see our point."
Duke raised a hand, silencing Chen and refocusing the pressure. "Second, you accept and agree to do $1 million capital investment into new fleet vehicles and a new system, to be completed and proven operational by February 1st, 1969."
Thorne opened his mouth, but Duke cut him off. "That is Option One. The continuation of our contract, would be contingent on immediate compensation and a verifiable plan to fix your systemic failure."
"And Option Two, Mr. Hauser?" Reynolds asked, his voice now cautious.
Duke finally allowed a chilling smile to appear. "Option Two is simple. We walk away from this meeting now. You keep your current distribution fees, you keep your outdated trucks, and you make zero structural investments."
"That sounds reasonable," Thorne said, reaching for his file, assuming the meeting was over.
"Except for this," Duke continued, tapping Chen's report on the dramatic success in the three hubs. "If we walk away, we will immediately go to negotiate and plan with our independent haulers in Chicago, Boston, and Atlanta, to make sure their contracts with Ithaca are now permanent and exclusive."
"We will permanently pull the product from your hands in those three regions, effective immediately."
Thorne froze. Those were all high-density markets, and the Marvel titles were, by far, their most profitable and highest-volume product in those areas.
"You cannot do that," Thorne sputtered. "We have an exclusive contract!"
"We will litigate that, Mr. Thorne," Duke assured him, utterly unconcerned.
"But the courts will see that we removed the product only after presenting irrefutable evidence that you failed to perform your service, resulting in a 70% loss of product."
"While the lawyers argue for eighteen months, you will lose the entirety of your fee revenue from three of your most profitable metropolitan areas."
Duke leaned back, letting the financial reality sink in.
"You spend a million in capital and lose 10% on the fee, but you keep the entire national account, and your company's reputation is saved."
"Or, you keep your current fees, keep your cash, and immediately lose three critical revenue streams to an independent publisher who is capable of building his own distribution channel."
"This is coercion," Reynolds mumbled.
"No, Mr. Reynolds," Chen corrected, his voice sharp. "This is a consequence analysis of your past performance. We wouldn't do this if your bussines did what we agreed on."
Duke let the silence stretch, watching Thorne run the numbers in his head.
Thorne was looking at an immediate, verified, and sustained drop in quarterly revenue that would instantly trigger a shareholder panic and likely cost some executives their job.
The million capital expenditure, while painful, was a manageable cost of doing business.
Thorne finally deflated, placing his pen down with a sigh.
"The contracts for the independent haulers," Thorne said, his voice flat. "They must be immediately reassigned to Charlton, with full integration into our system."
"No," Duke countered instantly. "The haulers remain Ithaca contractors for the next three months. They will report to Mr. Chen for all delivery metrics."
Thorne rubbed his chin, accepting the inevitable. "And the capital expenditure... we commit to sourcing three hundred new vehicles within the next ninety days, subject to a phased deployment schedule."
"Not vehicles," Duke corrected, his voice still rigid.
"Infrastructure. That includes the delivery system, the routing systems, and the hiring of dedicated regional managers, not just new bread trucks."
Thorne sighed. "Very well, Mr. Hauser. We will commit to a million infrastructure upgrade and the 10% fee reduction, contingent on the immediate continuation of your volume commitment."
Duke nodded, a small, victory secured.
He had leveraged 50,000$ into a million-dollar upgrade and a permanent fee reduction, all while forcing his structural problem onto his distributor's ledger.
"Mr. Chen will send any amendments this evening," Duke said, standing up.
He offered a handshake that they take. "We expect an infrastructure expenditure report sometime soon.".
"That was good, Duke," Chen observed while walking out.
"It's the only way to solve this David," Duke replied, stepping into the car. "They agreed to the distribution, and they now need to follow it."
---
The air in the Ithaca Records conference room felt heavy, and full of lingering resentments.
Joe Jackson sat hunched forward, his jaw rigid, having just listened to Walsh confirm the massive success of "I Want You Back" while simultaneously dismantling the promotional idea that he had demanded.
"The radio reports are incredible, Joe," Walsh reiterated, trying to keep the momentum positive.
"We're tentavely scheduling the album for March 1969. But we have to be smart about the national launch. We plan to focus on television and key endorsements."
"And that's where you fail me," Joe shot back, ignoring the album date.
"You have a big white rock group here in the label, Creedence Clearwater Revival. They sell records to everyone. If John Fogerty introduces my boys, that makes them famous even among whites not just another rhythm and blues group."
Walsh sighed, massaging his temples. He hated these zero-sum arguments. "Joe, I've told you the demographics don't align. It's not even a slight differenve; it's a market reality."
Walsh grabbed a marker and drew two distinct, non-overlapping circles on the whiteboard.
"CCR's core audience is 90% white, male, college-age, and anti-establishment. They buy albums."
"We plan for The Jackson 5's core audience to be young, Black, urban, and mainstream pop which would be liked by both genders. They buy singles and watch TV specials."
"Forcing Fogerty to promote the Jackson 5 would damage the rock audience appeal and wouldn't move the pop audience, which needs a different kind of endorsement."
"Furthermore," Walsh's voice dropped, becoming firm, "CCR is the financial engine of this entire company, every show they play, every album they sell, funds our growth."
"We cannot disrupt their cash flow for a cross-promotion that delivers low results."
Joe Jackson scoffed. "So you'll deny my boys the advertisement they deserve just to protect that band's image."
Duke, who had remained silent leaned forward, placing his hands flat on the table. The conversation had stalled long enough.
"Mr. Jackson, we didn't buy The Jackson 5 to treat them like just another R&B group," Duke said.
"We bought them to get them to become a phenomenon. You are right that they need a star, and Diana Ross is the best star for that job."
Joe Jackson blinked, startled by the unexpected concession. "Ross is at Motown. That's Berry Gordy's property."
"She is a star, Joe, and everything has a price," Duke replied, the financial pragmatism returning to his tone.
"Mr. Chen and I have devised a high-leverage proposal that bypasses traditional cross-label promotion. We will not be asking Berry Gordy for a favor; we are going to be offering him a mutually beneficial transaction."
Duke then laid out the framework of the negotiation he planned to take directly to Berry Gordy, using Ithaca's liquidity and experience in film as a hammer.
"Motown is currently looking to expand its reach into network television, which we could help with. They lack the liquid cash and the production team and experience to make it properly by themselves."
"We will approach Mr. Gordy with an offer to co-finance and co-produce a network television special for Diana Ross and The Supremes."
"We will underwrite the production cost using our film budget and try to secure a prime-time slot on a major network something Berry Gordy would not be able to get alone."
"In exchange for this massive injection of cash and guaranteed prestige television access," Duke continued, his voice film, "we demand only a couple of things, which will be non-negotiable."
Duke laid out the terms, he wanted to showcase to Joe Jackson, the label's comitment to his group.
Diana Ross must personally promote The Jackson 5. She will be contractually obligated to appear on the special and formally introduce the group.
The Jackson 5 will receive a guaranteed five minutes of screentime on the special.
During those five minutes, The Jackson 5 must perform their single, 'I Want You Back,' guaranteeing the national, cross-market exposure they need.
"Gordy gets a high-budget, prestige TV special for Ross that he doesn't have to fund, promoting his star and his label's transition into multimedia."
"We get the introduction we need without distracting our core cash engine, CCR, and also we can start trying to expand into TV" Duke concluded.
"The act of securing Diana Ross's and for the Jackson 5 to sing for five minutes in her special, the legitimacy and exposure that will bring to the band will be priceless."
Joe Jackson sat in stunned silence, processing the scale of the financial maneuver.
"You're buying her endorsement," Joe realized.
"We are funding her platform, and in return, we are purchasing the legitimacy required to launch our second biggest act in this label," Duke corrected.
"That's how business works, Mr. Jackson. Now, Walsh will be in charge of those 5 minutes of that special performance with Diana Ross."
---
Im planning the time skip