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American Record Corporation
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American Record Corporation
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American Record Corporation (ARC),[4] also referred to as American Record Company, American Recording Corporation,[5] or ARC Records,[6][7] was an American record company in operation from 1929 to 1938, and again from 1978 to 1982.[8]

Key Information

Overview

[edit]

ARC was created in January 1929 by Louis G. Sylvester, president of Scranton Button Works ('Scranton'), founded 1885. Scranton owned a pressing plant that manufactured disks for many companies, including Columbia labels and Emerson Records, the latter which it also owned. It then purchased Cameo Record Corporation, which owned the Cameo, Lincoln and Romeo labels), and six labels owned by the Plaza Music Company (Conqueror, Banner, Domino, Jewel, Oriole, and Regal).[8] for $1 each, including liabilities. Pathé-Perfect Phonograph and Radio Corporation, which owned Actuelle, Pathé, and Perfect, was also purchased. 'American Record Corporation' was incorporated in Delaware on July 25, 1929, as a subsidiary of Consolidated Film Industries, Inc. ("CFI"). Louis G. Sylvester became the president of the new company, located at 1776 Broadway in Manhattan, New York City.[1]

Columbia Phonograph Company US ownership

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In March 1925, Louis Sterling, managing director of the UK Columbia Graphophone Company, backed by J.P. Morgan & Co., acquired a controlling interest in the parent company, Columbia Phonograph Company (U.S.), for $2.5 million, in order to purchase the license for new Western Electric patents that Columbia US could not afford.[9] The British firm controlled US operations from 1925 until 1931. Sterling, originally from New York, became chairman.

The repercussions of the stock market Crash of 1929 led to huge losses in the recording industry and, in March 1931, J.P Morgan, the major shareholder, steered the Columbia Graphophone Company (along with Odeon records and Parlophone, which it had owned since 1926) into a merger with the Gramophone Company ( ("His Master's Voice") to form Electric and Musical Industries Ltd (EMI).[10][11][12] Since the Gramophone Company (HMV) was a wholly owned subsidiary of Victor, and Columbia in America was a subsidiary of UK Columbia, Victor now technically owned its largest rival in the US.[10] To avoid antitrust legislation, EMI had to sell off its US Columbia operation, which continued to release pressings of matrices made in the UK.[10]

In December, 1931, the U.S. Columbia Phonograph Company, Inc. was sold to the Grigsby-Grunow Company, the manufacturers of Majestic radios and refrigerators. When Grigsby-Grunow was declared bankrupt in November 1933, Columbia was placed in receivership, and in June 1934, the company was sold to Sacro Enterprises Inc. ("Sacro") for $70,000. Sacro was incorporated a few days before the sale in New York. Public documents do not contain any names. Many suspect that it was a shell corporation set up by ARC's parent, Consolidated Films Industries, Inc. to hold the Columbia stock. This assumption grew out of the ease which CFI later exhibited in selling Columbia in 1938.[13]

Brunswick Radio Corporation purchased by Warner Brothers Pictures, Inc.

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On April 9, 1930, the Brunswick-Balke-Collender Company sold its Brunswick and Vocalion trademarks, patents, master recordings, inventory of unsold records, recording studio leases, radio/phonograph manufacturing plants and record pressing plants to Warner Bros. Pictures, Inc. (WB), which named its new division the "Brunswick Radio Corporation." The price was $10,000,000.

According to a book co-authored by Jack Warner, Jr., Warner Bros. Pictures "bought the radio, record and phonograph divisions of Brunswick-Balke-Collender Company for the company's patents, its record factory, and its 16mm home talkie projector".[14] Before they came to their senses, it was all moved across the country to WB's Sunset studio. WB soon realized it was a terrible mistake; it lost $8 million on the Brunswick deal.

Melotone, a subsidiary label of the Brunswick Radio Corporation, was introduced late in 1930. "Brunswick is the first of the big-three disc companies to go into the market shortly with a double-faced disc to sell at 25 cents. Plate is called the Melotone," reported Variety. "Policy of Melotone will be the biggest song, to be delivered as cheaply as possible. No literature or advertising campaigns; cheap nut, quantity is the goal."[15]

WB wanted to withdraw from the record business, but economic conditions had deteriorated to the point where no buyer would offer anything close to the $10,000,000 they'd paid for Brunswick just the year before. Unwilling to take a huge loss, an agreement was entered into with Consolidated Film Industries, the parent company of ARC, on December 3, 1931, whereby the record company's artist and staff employment contracts were transferred, and the Brunswick, Vocalion and Melotone trademarks and catalog of master recordings were loaned, to the "Brunswick Record Corporation," a newly-formed holding company controlled by ARC.

While WB was to be paid a fee on sales of records pressed from Brunswick, Vocalion and Melotone masters recorded prior to December 3, 1931, ARC was permitted to release its own master recordings on the Brunswick, Vocalion and Melotone labels free of charge. The agreement effectively fixed the minimum retail price of a 10-inch Brunswick record at 75 cents, but allowed ARC free rein to set prices for Vocalion and Melotone (The price of Melotone nonetheless stayed at 25 cents.) In the event that fewer than 250,000 Brunswick records were pressed and sold in the U.S. and Canada during any one-year period, the agreement provided that control of the trademarks and catalog of Brunswick, Vocalion and Melotone masters recorded through December 2, 1931 would revert to WB. Brunswick would become ARC's premium label.

Columbia Broadcasting System, Inc. acquires American Record Corporation

[edit]

On December 17, 1938, American Record Corporation was purchased for $700,000 by the Columbia Broadcasting System, Inc. (CBS).[3] Edward Wallerstein was named president on January 3, 1939. On April 4, 1939 CBS filed an amendment in New York for Columbia Phonograph Company, Inc.

Columbia Phonograph Company, Inc., has been chartered to conduct a business in the recording of voices, sounds, etc., in New York, with Frank K. White and Adrian Murphy (employees of CBS), among the directors. Attorney Ralph F. CoUn, 165 Broadway, is third director. White owns four shares; the others three apiece. Capitol stock is $10;000, $10 par value. Rosenberg, Goldmlark & Colin, are filing attorneys.[This quote needs a citation]

Above incorporation represents the formal change of name of CBS' phonograph subsidiary. The American Record Co. tag is discarded and instead of three corporations embracing the ARC'S various operations there will be one, the Columbia Phonograph Co., Inc. The latter label was taken over by Herbert J. Yates, former head of the American Record Co. several years ago and made file insignia of the combine's classical catelog. The indications are that the Columbia label will be returned to the popular field, replacing Brunswick as the company's fee popular record.[This quote needs a citation]

On May 22, 1939, Columbia Recording Corporation, Inc., was incorporated with the State of Delaware,[1] and became the CBS phonograph subsidiary. The New York Department of State shows a later incorporation date of April 4, 1947. This corporation changed its name to Columbia Records, Inc. on October 11, 1954, and reverted to CRC on January 2, 1962.

Columbia Recording Corporation

[edit]

In February 1939, "American Record Co., now the child of the Columbia Broadcasting System, will shortly' move its recording division from its present location on upper-Broadway, New York, to a site conveniently near the Madison avenue home of its new parent".[This quote needs a citation] Studios were established at 799 7th Avenue, New York City, along with corporate offices at 1473 Barnum Avenue, Bridgeport, CT. Also in February, John Hammond was hired by Wallerstein as Associate Director Popular Recording. Another executive from ARC, Art Satherley, was not expected to transition over as easily. "It is understood that CBS and the Levys are not interested in retaining American Record's hillbilly department, and that Art Satherly, who has been running this section for many years, will take it out of the company with him".[This quote needs a citation] Fortunately, to the delight of many, this did not happen, and Art went on to many more successful years.

Hammond hired Benny Goodman away from Victor to record for the Columbia label. Then came an announcement August 30, 1939, "Columbia drops its Brunswick label at 75c in favor of a 50c platter tagged Columbia, with the issuing of the first of the platters cut by Benny Goodman Sept 3".[16] Brunswick was gradually phased out, the final issue being Brunswick 8520, in April 1940. On December 27, "Columbia Records expects to shift quite a list of artists from its current $.35 Vocalion label to the recently created $.50 Columbia...reason for the shift is that the Columbia label is selling so much faster than the Vocalion."[This quote needs a citation]

As sales of Brunswick records declined, a minimum threshold required by the 1931 Warner Bros. lease agreement was going unmet, which obliged Columbia to also discontinue Vocalion. The final Vocalion issued under Columbia's aegis, number 5621, was released July 5, 1940. It was priced at 35 cents, as was the next record in the series, OKeh 05622. Okeh Records was revived in June 1940, acquired in the same 1934 bankruptcy sale whereby ARC obtained its Columbia trademarks. By July, it was releasing new Hillbilly platters by Gene Autry and Bob Wills, and re-issuing past Vocalion discs, using the same catalogue numbers with a leading zero added. Okeh was extremely successful until it was merged into the parent label in 1945. When a January 1941 audit found that not more than 150,000 Brunswick records had sold during the period from December 1, 1939 through December 31, 1940, control of the loaned trademarks and catalog of master recordings made prior to December 3, 1931 reverted to Warner Bros. Pictures

Brunswick and Vocalion purchased by Decca Records, Inc.

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On May 2, 1941, Decca Records Executive Milton Rackmil bought Brunswick Radio Corporation from Warner Brothers for $350,000,[17] which included Brunswick, Vocalion and Melotone masters from label inception to December 1931. Decca reactivated the labels for limited purposes from time to time, but it was the valuable catalogues it really wanted. Brunswick masters included Isham Jones, Al Jolson, early Duke Ellington, Louis Armstrong and Marion Harris, but it was obscure Jacques Rennard and His Orchestra that had recorded "As Time Goes By" in 1931. Decca re-released it in 1943, to capitalize on 'Casablanca's' (1942) theme music. Because of the American Federation of Musicians' 1942–1944 musicians' strike, which resulted in a ban on studio recording, the only recordings the major labels could find were the Rennard, and a July 1931 rendition by Rudy Vallee and His Connecticut Yankees, released by Victor. Both finished in the top 25 of 1943, with Renard's version selling over 250,000 copies, making Decca management so happy, they gave him a $1,000 bonus, even though he hadn't recorded for years. His record's sales more than paid for the Brunswick Radio Corporation purchase. Rackmil was also promoted and named to the Decca board of directors.[18]

ARC re-activated

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During August 1978 ARC was reactivated by Columbia as Maurice White's vanity label. Acts such as Earth, Wind & Fire, Weather Report, Deniece Williams, Pockets, and The Emotions were signed to the label. One of the label's final releases was Earth, Wind & Fire's 1981 album Raise![19][20]

As of 2019, the ARC legacy is now part of Sony Music Entertainment.

Labels ARC issued or pressed (1929–1938)

[edit]

Labels that existed prior to the formation of ARC are marked +

  • ARC (sold to theaters for background and intermission music 1931–1933?, 1978–1982 vanity label for Maurice White)
  • Banner +1929–1938
  • Bernardo (client label)
  • Broadway +from 1932 (fulfilling a contract with Montgomery Ward after Paramount ceased production)
  • Brunswick +1932–1938 (under lease agreement from Warner Bros. Pictures)
  • Cameo +1929–1930
  • Columbia +late 1934–1938
  • Commodore (client label for Commodore Music Shops)
  • Conqueror +(client label for Sears from 1929–1938)
  • Domino +1929–1931 (but was restarted as a client label for the John Gabel Co. circa 1933–34)
  • Fox Movietone (client label sold only at Fox Theaters, taken over from Victor, circa 1934)
  • Gospel Herald (client label)
  • Gramophone Shop Varieties (client label for The Gramophone Shop)
  • Hollywood 1936–1937 (client label)
  • Homestead +(mail order label 1929 to circa 1931, when it was taken over by Crown Records)
  • Hot Record Society (client label for the Hot Record Society)
  • Jewel +1929 to circa 1932
  • Liberty Music Shops (client label for the Liberty Music Shops)
  • Lincoln +from 1929–1930
  • Master 1937
  • Mel-O-Dee (client label as a specialty jukebox label for Will F. Dillion Associates, Inc.) 1931
  • Melotone +1932–1938
  • Oriole +1929–1938 (client label for McCrory)
  • Paramount +1932 to circa 1934. Pressed last of the 13000 series and the short-lived 9000 series
  • Pathé +1929–1930
  • Perfect +1929–1938
  • Regal +1929–1931
  • Romeo +1929–1938 (client label for Kress Stores)
  • Shamrock Stores – (client label for the Shamrock Stores)
  • Supertone +1930 to circa 1931 (client label for Sears whose short-lived series made by Brunswick after the Gennett period ended. This rare series probably hails from right before the ARC takeover of Brunswick)
  • U.H.C.A. – (client label specializing in reissues for United Hot Clubs of America through Commodore)
  • Variety 1937
  • Vocalion +1932–1938 (under lease agreement from Warner Bros. Pictures)

See also

[edit]

References

[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

American Record Corporation

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from Grokipedia
The American Record Corporation (ARC) was an American record company founded in 1929 through the merger of several independent labels, including the Cameo Record Corporation, Pathé Phonograph and Radio Corporation, Emerson Records, and Plaza Music Company, becoming a dominant force in the budget record market during the era. Under the leadership of figures like Herbert Yates, who assumed control shortly after formation, ARC produced affordable 78 rpm records under imprints such as , Melotone, Oriole, , Perfect, and Conqueror, which accounted for a significant share of the industry's sales in the early 1930s by offering three records for a . In 1931, ARC leased the Brunswick and Vocalion labels from , and in 1934, it acquired the Columbia Phonograph Company and its subsidiary , expanding its catalog to include mainstream and "race" recordings that captured pivotal and artists, notably producing the influential sessions in in 1936–1937. By 1938, amid financial pressures, ARC discontinued most of its budget lines and was purchased by the for $700,000, after which it was reorganized as the Columbia Recording Corporation, forming the basis for the modern label under Entertainment.

Formation and Early Development

Founding (1929)

The American Record Corporation (ARC) was incorporated on July 25, 1929, in the State of as a of Consolidated Film Industries, Inc., with the primary purpose of consolidating record pressing and distribution operations amid a rapidly changing recording industry. This formation reflected the era's push toward efficiency in manufacturing and for phonograph records, leveraging existing facilities to streamline production for multiple labels. Louis G. Sylvester, who had previously served as head of the Scranton Button Works—a Pennsylvania-based manufacturer founded in 1885 that had expanded into record pressing around 1916—became ARC's first president. Under his leadership, the company established its headquarters at 1776 Broadway in , , drawing on Scranton's established molding and pressing expertise to support ARC's operational backbone. The Scranton Button Works' prior involvement in producing discs for independent labels provided ARC with immediate access to proven manufacturing capabilities, enabling rapid scaling without the need for new infrastructure investments. ARC's initial business model emphasized budget-priced records sold through discount outlets, targeting cost-conscious consumers in the wake of the October 1929 and the onset of the . This approach positioned ARC to capitalize on the demand for inexpensive entertainment, focusing on volume sales of low-cost rpm discs rather than premium offerings, which helped it navigate the economic pressures that were forcing industry-wide consolidation.

Initial Acquisitions of Cameo and Plaza

In 1929, the American Record Corporation (ARC) was established through the strategic acquisition of the Cameo Record Corporation (which had merged with Phonograph & Radio Corporation in 1927–1928), the merger with the Plaza Music Company, and the inclusion of Emerson Records through the Scranton Company, to consolidate operations in the industry. The Cameo acquisition brought labels such as Cameo, , and Lincoln, providing ARC with an established roster of recordings and a pressing plant in . Similarly, the Plaza merger incorporated labels including Oriole, , Regal, Domino, and Jewel, expanding ARC's access to a diverse catalog of budget-oriented releases targeted at mass-market consumers. These moves were driven by the economic turmoil following the October 1929 stock market crash, which initiated the and severely impacted the recording sector by reducing on non-essential goods like phonograph records. Industry sales plummeted from over 100 million units in 1927 to 6 million by 1932, prompting consolidations as smaller labels struggled with financial losses and overcapacity in . By acquiring Cameo and merging with Plaza at a relatively low cost during this downturn, ARC gained control of existing artist contracts, master recordings, and production facilities without the need for substantial new investments, positioning the company to maintain output amid declining demand. Following the integrations, ARC centralized recording and pressing at Cameo's 32nd Street facility in New York, streamlining operations across the acquired labels to reduce overhead. The company began reissuing hundreds of pre-existing masters from Cameo and Plaza under its own control, often renumbering them—for instance, assigning false Cameo matrix numbers to older recordings—to refresh the catalog and extend the life of popular titles. This process enabled ARC to launch an initial output of budget-priced 78 rpm records at 35 cents each, focusing on genres like dance bands and to sustain volume production despite the economic challenges.

Major Expansions and Operations

Acquisition of Brunswick Labels from Warner Bros. (1931)

In the wake of the 1929 stock market crash and the ensuing , which severely impacted the recording industry by reducing U.S. record sales from 104 million units in 1927 to just 10 million in 1930, , sought to divest non-core assets to alleviate financial pressures. Having acquired Brunswick Radio Corporation—along with its phonograph and radio interests—for approximately $11 million on April 9, 1930, faced mounting challenges as the Depression eroded demand for records and related equipment. This led to a strategic decision to outsource the recording operations rather than maintain full ownership. On December 3, 1931, entered into an agreement with the (ARC), licensing the Brunswick recording operations to ARC's newly formed subsidiary, Brunswick Record Corporation, a New York entity. The handover occurred on December 12, 1931, transferring record inventories, licenses, leases, and raw materials valued at $190,954.94 (F.O.B.), in exchange for an initial payment of $37,500 and the balance in three installments at 3, 6, and 9 months. Under the terms, ARC assumed responsibility for pressing and selling under the Brunswick trademarks in the United States and , while retained ownership of the masters produced before November 17, 1931, and imposed a minimum sales quota of 250,000 . This allowed ARC to manage sales and distribution without a complete ownership transfer, building on its earlier base of labels from the Cameo and Plaza acquisitions. The deal brought under ARC's control the prestigious Brunswick and Vocalion labels, as well as Melotone, Superior, and Polk, significantly expanding its portfolio with access to high-profile artists such as , , and , whose recordings had established Brunswick as a leading and imprint. This acquisition enhanced ARC's distribution networks by integrating Brunswick's established sales channels, positioning the company as a dominant force in the consolidating record industry during the early .

Purchase of Columbia Phonograph Company (1934)

In 1934, the American Record Corporation (ARC), a of Consolidated Film Industries, acquired the bankrupt Columbia Phonograph Company through its newly formed , Sacro Enterprises, Inc. Sacro was incorporated on April 14, 1934, with minimal $1,000 capitalization specifically to facilitate the transaction, which closed on April 16 for $70,000 in cash plus the assumption of Columbia's $115,866 in debts. This move followed ARC's earlier integration of Brunswick labels in 1931, continuing its strategy of consolidating key industry assets during the . Edward Wallerstein played a key role in the negotiations, driven by ARC's aim to revive Columbia's prestige as a premium brand while complementing ARC's focus on budget-oriented labels. The acquisition was motivated by the need to expand ARC's portfolio, secure high-quality production capabilities, and eliminate a direct competitor in a depressed market. Herbert J. Yates, president of Consolidated Film Industries, oversaw the deal, preempting potential bids from other industry figures. As a result, ARC gained control of Columbia's U.S. operations, including its master recordings, trademarks, artist contracts, and facilities such as the recording studios in New York and , along with the Columbia and Okeh labels. Columbia operated as a semi-autonomous division under ARC, with Okeh discontinued by 1935 and Columbia repositioned toward reissues to leverage its historical prestige. This acquisition elevated ARC to the position of the second-largest U.S. behind RCA Victor, bolstering its market dominance.

Recording Facilities and Key Personnel

The American Record Corporation (ARC) maintained a network of recording studios primarily in major urban centers to facilitate efficient production during its peak operational years from 1931 to 1938. The company's primary recording facility was located at 1776 Broadway in , which served as the central hub for sessions following the 1931 acquisition of Brunswick and became a key asset for electrical recordings across ARC's portfolio. Additional permanent studios operated in at the Furniture Mart on 666 , equipped with multiple rooms for simultaneous sessions, and in at 2481 Porter Street, supporting West Coast talent captures. Temporary or leased facilities extended to locations such as , New Orleans, and by 1936, allowing ARC to conduct field recordings tailored to regional artists. For record pressing, ARC relied on a distributed infrastructure that expanded significantly after the 1934 purchase of the Columbia Phonograph Company, which provided access to the plant specializing in high-quality laminated discs. The core pressing operation was based in , inherited from the Scranton Button Company and capable of substantial output as demonstrated by its earlier production of 25,000 discs daily for other labels in the . Supplementary plants in ; ; ; and , further bolstered capacity, positioning ARC as the world's largest producer of popular-priced records by 1931 through across multiple sites. Leadership at ARC emphasized operational efficiency and cost management, with Louis G. Sylvester serving as president from the company's 1929 formation until February 1931, overseeing the initial consolidation of studios and pressing resources. Moe J. Siegel succeeded him, leading through 1936 and guiding expansions like the integration of Columbia's Bridgeport assets, while Richard Altschuler took over as president from 1936 to 1939, navigating the company's final years under ARC control. , as head of parent company Consolidated Film Industries, exerted strategic oversight from 1930, influencing facility investments and production strategies. Eli Oberstein emerged as a pivotal executive in the mid-1930s, managing pressing operations and contributing to cost-saving initiatives that maximized resource utilization. ARC's technical approach centered on electrical recording, which the company fully adopted by to enhance audio fidelity over outdated acoustic methods, enabling broader tonal range in masters produced at its New York and studios. A key innovation was the establishment of an electrical transcription division in 1931, producing 16-inch and 17-inch discs at rpm for and theater use, which optimized studio time and reduced duplication costs. To further cut expenses amid Depression-era pressures, ARC implemented widespread sharing of masters across its labels, drawing from a unified pool (e.g., B- series from New York, C- from ) that allowed single recordings to support multiple imprints without redundant sessions, a practice that streamlined operations and amplified catalog value.

Labels and Artistic Output

Primary Labels Issued by ARC (1929–1938)

The American Record Corporation (ARC) issued and controlled a diverse portfolio of record labels during its operational years from 1929 to 1938, leveraging acquisitions and mergers to dominate the U.S. market amid the . Core labels included , Cameo, Columbia, Brunswick, Vocalion, Okeh, , Oriole, Melotone, Conqueror, among others derived from predecessor companies like Plaza Music and . These encompassed both premium lines, such as Columbia and Brunswick, which featured higher-fidelity recordings and targeted upscale listeners interested in genres like classical and , and budget-oriented brands like , Oriole, and Melotone, designed for affordable mass distribution at 35¢ to 50¢ per disc. ARC's production strategy emphasized efficiency through shared matrices, allowing the same master recordings to be pressed for multiple labels under different catalog numbers and artist credits, thereby reducing costs and maximizing output across its brands. Over this period, ARC recorded more than 21,000 masters, enabling a vast catalog that supported both premium and budget releases while adapting to economic constraints. High-volume pressing at facilities like the Scranton Button Company in further facilitated this scale. The company's market approach segmented consumers by demographics and preferences, with premium labels appealing to jazz enthusiasts and affluent buyers seeking quality artistry, while budget lines catered to general audiences through dime-store availability and broad genre coverage including pop, , and . This tiered strategy, often distributed via partnerships with retailers like and newsstands, helped ARC capture diverse segments from working-class families to specialized music aficionados.

Notable Artists and Recordings

The American Record Corporation (ARC) showcased a roster of prominent artists who defined the and landscape of the 1930s, including , , , and . 's energetic performances, such as his scat-driven hits on Vocalion and labels, captured the exuberance of nightlife, while 's smooth crooning on helped popularize intimate vocal styles for mainstream audiences. 's sophisticated orchestra recordings elevated composition, and 's emotive interpretations brought raw vulnerability to the genre. A key figure in ARC's artistic direction was John Hammond, who served as an influential A&R executive at Columbia (acquired by ARC in 1934) and pioneered integrated recording sessions by pairing Black and white musicians, such as Holiday with pianist in small combo settings starting in 1935, challenging in the industry and fostering collaborative creativity. Iconic recordings under ARC highlighted the company's role in preserving and innovating swing and jazz. Ellington's "It Don't Mean a Thing (If It Ain't Got That Swing)," recorded on February 2, 1932, at ARC's New York studios and released on Brunswick 6265, introduced the term "swing" to popular lexicon and exemplified the rhythmic vitality of his Cotton Club Orchestra, featuring vocalist Ivie Anderson. Holiday's early Columbia sides from 1935 to 1938, including "Summertime" (July 10, 1936) and "Billie's Blues" (1936), captured her signature phrasing and emotional depth in small-group arrangements led by Teddy Wilson, often at ARC's 1776 Broadway facility, marking her breakthrough as a jazz vocalist. These tracks not only achieved commercial success but also influenced subsequent generations of singers by blending blues inflections with orchestral polish. ARC's artistic policies emphasized race records—78-rpm discs targeted at African American audiences—through labels like Okeh and Vocalion, which continued issuing and sides into the mid-1930s despite the Great Depression's impact on sales. This focus extended to contributions via Brunswick and Columbia, where A&R practices involved talent scouting by figures like Hammond and Eli Oberstein, who prioritized versatile ensembles and live-performance energy to appeal to both Black and white markets. By leasing external masters and utilizing in-house studios, ARC's approach democratized access to high-caliber recordings, amplifying the cultural impact of swing as a unifying force in American music during economic hardship.

Decline, Sale, and Aftermath

Financial Challenges and Sale to (1938)

By the late 1930s, the American Record Corporation (ARC) grappled with severe financial pressures exacerbated by the ongoing , which had drastically reduced consumer spending on non-essential goods like phonograph records since the early 1930s. Sales for ARC's budget-oriented labels plummeted sharply amid widespread economic contraction. The rapid expansion of commercial radio further eroded the record market, as free broadcasts offered superior audio quality and supplanted paid entertainment sources, diverting potential customers away from ARC's products. Compounding these issues were disputes with the American Society of Composers, Authors, and Publishers (ASCAP) over licensing fees, which inflated operational costs and restricted access to catalogs for recording. ARC accumulated substantial unpaid royalties, reaching $120,000 by March 1931 at a rate of $5,500 per week, contributing to broader industry tensions with music publishers. These factors fueled mounting , with ARC's liabilities reaching $400,000 by early 1931—and culminating in a 1936 filing amid substantial obligations. Following its operational peak from earlier expansions into multiple labels and facilities, ARC's financial instability prompted a sale to the Columbia Broadcasting System (CBS). On December 17, 1938, CBS acquired ARC from Consolidated Film Industries for $700,000 in cash, encompassing all assets, subsidiaries (including Brunswick Record Corporation, Columbia Phonograph Company, and Master Records, Incorporated), and master recordings. The transaction, finalized on January 1, 1939, marked the end of ARC's independent operations. In the immediate aftermath, ARC continued briefly as a CBS subsidiary, with Edward Wallerstein appointed president to oversee the transition of its catalog, labels, and pressing operations. This interim phase involved managing existing productions—such as budget lines like —while consolidating facilities at Bridgeport and shifting recording activities, allowing CBS to integrate ARC's resources without abrupt disruption.

Formation of Columbia Recording Corporation (1939)

Following the acquisition of the (ARC) by in 1938, the company underwent a significant reorganization to integrate its phonograph operations under a new entity. In May 1939, Columbia Recording Corporation was established as a corporation and wholly owned subsidiary of , absorbing ARC's manufacturing, recording, and distribution activities while reviving and renaming the Columbia label for domestic use. This transition ensured continuity in operations, with the new corporation taking over ARC's facilities in , and New York, as well as its extensive catalog of masters from labels like Brunswick, Vocalion, and OKeh. Leadership of the Columbia Recording Corporation was placed under Edward "Ted" Wallerstein, who was appointed president in early 1939 after leaving RCA Victor and advising CBS on the ARC purchase; he served in this role until 1951, guiding the company's strategic direction. Key personnel from ARC were retained to maintain artistic and technical expertise, including talent scout and producer John Hammond, who had joined the Columbia operations in the early 1930s and continued discovering and recording jazz and blues artists post-reorganization. Among its initial actions, the corporation focused on reissuing select ARC masters under the Columbia banner to capitalize on existing popular recordings, such as those by artists like and , thereby rebuilding market presence during the lingering effects of the . Concurrently, under Wallerstein's oversight, Columbia initiated into advanced recording technologies, including a secret project code-named "" launched in 1939 to develop precursors to long-playing records, such as 33⅓ rpm vinyl prototypes, which laid the groundwork for the 1948 LP introduction despite wartime constraints.

Subsequent Sales to Decca and Later Reactivations

In 1941, sold the Brunswick and Vocalion trademarks, along with associated remaining masters recorded prior to November 1931 and select artist contracts, to for $350,000, marking the final major dispersal of ARC's legacy labels outside the Columbia lineage. This transaction allowed Decca to revive the Brunswick imprint in 1944 for budget reissues and new recordings, while Vocalion continued briefly as a label until the mid-1940s, helping Decca expand its catalog during World War II-era shortages. The sale concluded the operational wind-down of these ARC-acquired brands under stewardship, with Decca integrating the assets to bolster its competitive position in the American recording industry. Decades later, ARC experienced a brief reactivation from 1978 to 1982 as a under , spearheaded by , founder of , who served as its president. Operating as ARC Columbia, it focused on promotional releases for and R&B acts, including , , and , but issued only a limited number of titles before folding amid shifting industry priorities. This short-lived revival honored the original ARC's name without direct ties to its prewar catalog, serving primarily as a creative outlet for White's production ventures within the ecosystem. The broader legacy of ARC's assets persisted through Columbia's evolution, culminating in Sony Corporation's $2 billion acquisition of CBS Records in 1988, which transferred control of the Columbia catalog—including ARC-derived masters—to Entertainment. Under Sony's division, formed in 1990, select ARC-era recordings have seen periodic reissues, though focused more on Columbia artists than standalone ARC labels. In the 2020s, efforts to preserve and digitize ARC's historical output advanced with a 2024 grant to the , funding the digitization of approximately 8,500 ARC 78 rpm records and documentation of 12,000 more for public access, addressing long-standing gaps in pre-digital preservation as part of an ongoing project.

References

  1. http://oldtimeblues.net/labels/LabelsARC.html
  2. https://www.liveabout.com/top-major-pop-record-labels-3246997
  3. https://the78rpmrecordspins.wordpress.com/2013/04/13/american-record-corporation/
  4. https://www.tshaonline.org/handbook/entries/recording-industry
  5. https://www.musicbusinessworldwide.com/companies/sony/sony-music-group/sony-music-entertainment/
  6. https://www.zippia.com/sony-music-entertainment-careers-38802/history/
  7. https://musicbrainz.org/label/526f5278-6061-4ec4-a4e3-cce91641d3af
  8. https://78rpmrecord.com/78brndec.htm
  9. https://earlyblues.org/blues-record-labels/
  10. https://www.discogs.com/label/567964-Scranton-Button-Company
  11. https://mainspringpress.org/2024/12/06/the-original-quality-record-at-35%C2%A2-the-cameo-record-corporation-story-1921-1929/
  12. https://chsi.emuseum.com/people/3120/plaza-music-company
  13. https://rme.rilm.org/articles/etb00071/1.0/etb00071
  14. https://www.federalreservehistory.org/essays/stock-market-crash-of-1929
  15. https://opentext.uoregon.edu/payforplay/chapter/chapter-9-the-great-depression-and-the-1930s/
  16. https://www.hotpress.com/culture/great-depression-music-woody-guthrie-coronavirus-22809799
  17. https://www.encyclopedia.com/arts/culture-magazines/boom-bust
  18. https://adp.library.ucsb.edu/index.php/resources/detail/196
  19. https://adp.library.ucsb.edu/index.php/resources/detail/194
  20. https://adp-assets.library.ucsb.edu/American-Record-Companies-and-Producers_2d-Ed.pdf
  21. https://adp.library.ucsb.edu/index.php/resources/detail/198
  22. https://books.google.com/books/about/American_Record_Corporation_Master_Recor.html?id=kDWFmgEACAAJ
  23. https://www.pbs.org/wnet/americanmasters/john-hammond-about-john-hammond/626/
  24. https://riverwalkjazz.stanford.edu/program/whiz-kid-swing-story-pioneering-record-producer-john-hammond
  25. https://www.mosaicrecords.com/duke-ellington-the-complete-1932-1940-brunswick-columbia-master-recordings/
  26. https://www.loc.gov/programs/national-recording-preservation-board/recording-registry/complete-national-recording-registry-listing/
  27. https://www.csmonitor.com/2006/1003/p17s01-bogn.html
  28. https://earlyradiohistory.us/1941cb03.htm
  29. https://findingaids.loc.gov/db/search/xq/searchMfer02.xq?_id=loc.mbrsrs.eadmbrs.rs005002&_faSection=overview&_faSubsection=did&_dmdid=
  30. https://www.nytimes.com/1970/09/03/archives/edward-wallerstein-dies-at-78-exhead-of-columbia-records.html
  31. https://www.latimes.com/archives/la-xpm-1987-07-11-me-486-story.html
  32. https://www.wsj.com/opinion/what-goes-around-comes-around-again-75-years-of-the-lp-e8def534
  33. https://history-of-rock.com/major_record_companies.htm
  34. https://www.worldradiohistory.com/Archive-All-Music/Cash-Box/70s/1978/CB-1978-08-05.pdf
  35. https://commons.wikimedia.org/wiki/Category:ARC_Records
  36. https://www.legacyrecordings.com/
  37. https://mainspringpress.org/2024/06/10/announcing-the-american-record-corporation-project-at-uc-santa-barbara/
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