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=== CBS takes over (1938β1947) === [[File:notesandmike.jpg|thumb|Columbia notes and mic logo]] On December 17, 1938, the ARC, including the Columbia label in the U.S., was acquired by [[William S. Paley]] of the Columbia Broadcasting System, Inc. for US$700,000,<ref name=NYSC>{{Cite book |last=Appeals |first=New York (State) Court of |url=https://books.google.com/books?id=VDYJG843cN0C&dq=New+York+corporate+filings+Columbia+Phonograph&pg=PA1330 |title=New York Court of Appeals. Records and Briefs. |date=1941}}</ref><ref name=saleclosed>{{Cite news |date=December 21, 1938 |title=Frank Walker |pages=24 |work=Variety |url=https://archive.org/details/variety132-1938-12/page/n3/mode/2up?q=Denies+Joining+CBS+Subsidiary |access-date=June 18, 2022}}</ref> ten times the price ARC paid in 1934, which would later spark lawsuits by disgruntled shareholders. (Columbia Records had originally co-founded CBS in 1927 along with New York talent agent [[Arthur Judson]], but soon cashed out of the partnership leaving only the name; Paley acquired the fledgling radio network in 1928.) On January 3, 1939, Wallerstein left RCA Victor to become president of the CBS phonograph subsidiary, a position he would hold for twelve years. CBS kept the ARC name for three months. then on April 4, it amended the New York Department of State record of "Columbia Phonograph Company, Inc.," naming several of its own employees to directorships, and announced in a press release, "The American Record Co. tag is discarded". Columbia Records was actually reborn on May 22, 1939, as "Columbia Recording Corporation, Inc.", a Delaware corporation.<ref name=StoryColumbia/> The NYDOS 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 Columbia Recording Corporation on January 2, 1962.<ref>{{Cite web |title=Public Inquiry |url=https://apps.dos.ny.gov/publicInquiry/#search |access-date=2022-07-01 |website=apps.dos.ny.gov}}</ref> The Columbia trademark remained under Columbia Records, Inc. of Delaware, filed back in 1929.<ref>{{Cite web |title=Division of Corporations β Filing |url=https://icis.corp.delaware.gov/eCorp/EntitySearch/NameSearch.aspx |access-date=2022-07-01 |website=icis.corp.delaware.gov}}</ref> Brothers Ike and Leon Levy owned stakes in CBS.<ref>[https://worldradiohistory.com/BOOKSHELF-ARH/History/CBS-Reflections-in-a-Bloodshot-Eye-Metz-1975.pdf CBS reflections in a Bloodshot Eye Metz] World Radio History</ref> In February 1939, NYC Studios moved from ARC headquarters at 1776 Broadway, to [[A & R Recording#Second studio, Studios A-1 and A-2 β 799 7th Avenue|799 7th Avenue, 6th&7th flrs, New York City]] ("Studio A"). Corporate offices, studio and Pressing Plant would also continue at 1473 Barnum Avenue, Bridgeport, CT. John Hammond was hired by Wallerstein as "Associate Director Popular Recording" (at 7th Ave). 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". Fortunately, to the delight of many, this did not happen, and Art went on to many more successful years supervising all aspects of Columbia's [[Country music|Hillbilly/Country]] artists and sessions. On August 30, 1939, Columbia replaced its $.75 Brunswick record for a $.50 Columbia label.<ref>{{Cite news |date=August 30, 1939 |title=Columbia drops its Brunswick label |pages=241 |work=Variety |url=https://archive.org/details/variety135-1939-08/page/n241/mode/2up?q=Brunswick |access-date=June 18, 2022}}</ref> Brunswick was gradually phased out, the final issue being Brunswick 8520, in April 1940. Wallerstein and Paley knew in advance that their course of action would lead to violation of the 1931 Brunswick lease agreement, so they discontinued Vocalion in June 1940, and fired up Okeh. 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. 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. The Columbia trademark from this point until the late 1950s was two overlapping circles with the Magic Notes in the left circle and a CBS microphone in the right circle. The Royal Blue labels were dropped in favor of a deep red, which caused [[RCA Victor]] to claim infringement on its famous [[RCA Red Seal Records|Red Seal]] trademark (RCA lost the case). The blue Columbia label was retained for its [[classical music]] [[Columbia Masterworks Records]] series until it was later changed to a green label before switching to a gray label in the late 1950s, and then to the bronze that is familiar to owners of Columbia/CBS classical and Broadway albums. Columbia Phonograph Company of Canada did not survive the [[Great Depression]], so CBS made a distribution deal with [[Sparton Records]] in 1939 to release Columbia records in Canada under the Columbia name. During the 1940s, [[Frank Sinatra]] recorded for Columbia and helped to substantially boost the company's revenue. Sinatra recorded over 200 songs for Columbia which include his most popular songs from his early years. Other popular artists on Columbia at this time included [[Benny Goodman]] (signed from RCA Victor in 1939), [[Count Basie]], [[Jimmie Lunceford]] (both signed from Decca), [[Eddy Duchin]], [[Ray Noble]] (both moved to Columbia from Brunswick), [[Kate Smith]], [[Mildred Bailey]], and [[Will Bradley]]. In 1947, the company was renamed Columbia Records Inc.<ref>{{Cite web | url=https://www.loc.gov/item/2002655160/ | title=Columbia Records paperwork collection| website=[[Library of Congress]]}}</ref> and founded its Mexican record company, Discos Columbia de Mexico.<ref>{{cite book|title=Billboard|url=https://books.google.com/books?id=eQsEAAAAMBAJ&pg=PA60|access-date=July 21, 2013|date=March 16, 1963|publisher=Nielsen Business Media, Inc.|page=60|issn=0006-2510}}</ref> 1948 saw the first classical LP [[Mendelssohn Violin Concerto (Nathan Milstein album)|Nathan Milstein's recording of the Mendelssohn Violin Concerto]]. Columbia's new 33 rpm format quickly spelled the death of the classical 78 rpm record and for the first time in nearly fifty years, gave Columbia a commanding lead over [[RCA Victor Red Seal]].<ref>D. Kern Holoman ''The Orchestra: A Very Short Introduction'' 2012 Page 107 "The first classical LP was the Mendelssohn Violin Concerto with Nathan Milstein, Bruno Walter, and the New York Philharmonic-Symphony, Columbia ML-4001. RCA capitulated in 1950, leaving 45s as the medium of choice for pop singles."</ref><ref>John F. Morton ''Backstory in Blue: Ellington at Newport '56'' 2008 Page 49 "1947.. The following year Columbia made what it regarded as record history, introducing the first twelve-inch LP, Mendelssohn's Violin Concerto in E minor, with violinist Nathan Milstein and the New York Philharmonic Orchestra, Bruno Walter ... Within a year and a half of the introduction of the LP, Columbia had sold twice as many Masterworks as RCA was selling of Red Seal. RCA had begun to lose some its artists. Some, like opera tenor (''sic''), Ezio Pinza, would go to Columbia..."</ref>
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