Setting up a new record company #7 Sell your product!

This week we aimed to tell the story of how Emile Berliner and Fred Gaisberg set up their record company in America in the late 19th Century. Seven blog entries on seven days. This is day #7. The final day; we made it! Its 1896. The new Philadelphian investors have decided that the United States Gramophone Company needs a permanent recording studio and a retail shop for gramophone players and discs and that it should be based in Philadelphia itself. Fred was selected to set up the recording studio which was above a shoe shop in Twelfth Street, Philadelphia. A new colleague Alfred Clark, then 22, was chosen to establish the gramophone shop. Clark and Gaisberg had similar backgrounds, both had also previously worked for Edison. Clark however was a much snappier dresser as Gaisberg later recalled.

“He was..a youth big and well proportioned, perfectly dressed in a tailor made suit which struck a note of distinction. Further his dark eyes and curly brown hair set off by a boyish blush whenever he spoke made him irresistible, quite apart from his wisdom and the fact that he had emerged from shadow of the great Edison.”

Gaisberg and Clark headed to the City of Brotherly Love to start this new record business, Gaisberg with his recording and Clark with his retail. A&R and distribution. Both would go on to play vital roles in the development of The Gramophone Company; Fred would make many of its recordings and Clark would eventually become Managing Director of the Gramophone Company and then the first Chairman of successor company EMI.

But back in 1896 all of this was ahead of them. Gaisberg fondly remembered the early days in Philadelphia.”Clark and I had living rooms adjoining the studio and so were frequently in each other’s company and exchanged views on the artist’s life, the gramophone industry and it’s future. That it had a future neither of us doubted. We were both in on the ground floor and had all the enthusiasm of youth.

There were evenings when we stopped at home and enjoyed the leather perfumed atmosphere of the studio over the shoe-shop. There was a piano, as usual mounted on a two foot high platform, and the recording machine invited exciting experiments in sound recording. Clark had a violin he was very fond of and occassionally tucked under his chin….

We..often found ourselves as guests in the homes of our (investor) directors..and in the more modest homes of Eldridge R Johnson and B.G. Royal then the small mechanics who ran the small tool shop across the river in Camden. At that time they were making the first two hundred spring-motor gramophones for the company. Their little shop was destined to expand into the great Victor Talking Machine before the decade was over.”

So as we look back on the 7 blog entries of this week that tell the story of how Fred Gaisberg and Emile Berliner set up the United States Gramophone Company we can see the years 1893-1896 were key to the development of the gramophone business. Berliner had, with the help of Eldridge Johnson, perfected his disruptive gramophone technology and the discs that it played. He had raised money to develop the business and had brought on board three key members of staff – Gaisberg as a PAID employee, Clark and Sinkler Darby. Technology + Capital + People = Business. Oh, and they found an artist or two.

What next? Well…1897 would see the push to internationalise the business. Next stop: World domination.

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