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2 chapter The Super Indies Central Character Berle Adams, Mercury Records also featuring the Capitol Records’ founders; Irving Green, Mercury Records; Jack Kapp, Decca Records; and Louis Jordan, Decca and Mercury artist Capitol Records’ Know-How A gradual buildup in the independent record business had been under way during the early 1940s despite the desperate circumstances affecting the music industry. The shining beacon was Capitol Records, yet the label had to overcome the worst possible timing of its launch. In April 1942, a mere fifteen days after Capitol had pressed its first discs, the War Production Board ordered a draconian 70 percent reduction in the available shellac stock. The recording strike by the American Federation of Musicians, just three months later, seemed to be the final nail in the coffin. As it happened, the Capitol founders were men of talent, grit, and financial substance, attributes that enabled the label to survive and prosper, eventually. President Buddy DeSylva, Vice President Johnny Mercer, and General Manager Glenn Wallichs were a dream team. Billboard agreed as much, noting in 1944 that the “answer to Capitol’s progress is fairly simple. The gents running it have the know-how.”1 Songwriter Buddy DeSylva was an executive producer at Paramount Pictures and contributed the total start-up capital of $25,000. Johnny Mercer is acknowledged as one of the finest tunesmiths ever, with “Blues in the Night,” “Come Rain or Come Shine,” “Fools Rush In,” “Goody Goody,” “Moon River,” and “That Old Black Magic” standing out in an astonishing portfolio. The third indispensable partner, Glenn Wallichs, was founder of Music City, located at the corner of Sunset and Vine in Los Angeles. His futuristic superstore was stocked with i-xvi_1-592_Brov.indd 21 11/19/09 10:43:59 AM 22 the independent revolution records, radios, and sheet music and offered custom-recording facilities. The clientele included Hollywood stars attracted by the latest in fashionable fads. Wallichs knew the distribution business intimately. He was particularly annoyed and frustrated that major labels RCA Victor, Columbia, and Decca would service only their own outlets in Los Angeles, and certainly not his Music City emporium. Thus was Capitol Records conceived. Wallichs’s visionary innovations included the establishment of a nationwide network of branches to bypass much of the infant independent distributors’ network and the launching of a transcription service for radio stations. Most important, he ensured that disc jockeys were supplied with regular free records, and in doing so he gave early recognition to the industry’s future power brokers. This pro-airplay model was contrary to the common belief that radio broadcasts would harm record sales rather than stimulate them. It was a critical philosophical breakthrough for the industry at large. Another key element in Capitol’s growth was a record-pressing agreement, in 1944, with the Scranton Record Co. (then the world’s largest pressing plant based in Scranton , Pennsylvania) that was followed by outright purchase for $2 million within two years. The recruitment of James B. Conkling, also in 1944, was another big plus. Here was the man who managed the label’s A&R strategy of producing impeccable-sounding records and who developed an expert marketing and promotion machine. Indeed, the entire Capitol organization was embossed with the seal of quality, epitomized by an enviable roster that would range from Nat “King” Cole, Peggy Lee, and Frank Sinatra to Gene Vincent, the Beatles, and the Beach Boys. Capitol’s quest for excellence was also signified by the “domed” logo with its four stars as well as by the magnificent album artwork that was introduced for the early 78–rpm collections and that later set the standard for vinyl LP jackets. If it seemed that Capitol Records was preordained to become an establishmentbiased major label, it is easy to forget that it had sprung from true indie roots. Even so, Capitol suffered the fate of most successful, fast-growing independent companies in any business: it was taken over by a larger, cash-rich corporation. The buyer was London-based Electric and Musical Industries Limited (EMI), which paid $8.5 million for a 95 percent controlling interest in January 1955. The background to EMI’s acquisition of Capitol was that EMI had lost the American Columbia international licensing rights from 1953 to Dutch Philips and would lose RCA Victor in 1957 to U.K. Decca. Together, Columbia and RCA accounted for a large chunk of EMI’s business, which had given rise to monopoly concerns. As well, Columbia...

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