ABSTRACT
Moe needed to start over after all of the difficulties with Asch Records and DISC Records. Unfortunately, one of the conditions of the bankruptcy agreement with DISC was that he was forbidden to be an officer of a record company for a considerable period of time. The creation—story of Folkways Records begins at this point. Although there are a several variants to the tale that Marian Distler purchased the assets of DISC Records and started Folkways, perhaps the only “official” story can be found in an undated affidavit signed by Marian Distler. 1 From this source, the story goes:
When Mr. Erlinger took over the operations of Disc Company through Disc Distributing Corp. he needed my services to advise him about certain details with which I was familiar having been with the Disc Company since its inception.
In the spring of 1948 when I felt that I was no longer needed, I resigned and went into business for myself at 117 West 46 Street as a matter of convenience. Mr. Erlinger having need of my services from this address had agreed to pay the rent until May when he had believed he would no longer need me. I formed the Folkways Records and Service Co. and assumed full payment of the rent notifying WEVD (owners) that I was the rent payer and possessor of the premises. I did not use any of the assets of the Disc Company and Mr. Asch paid me for my services whenever he needed me for stenographic purposes in connection with mail or business of the Disc Company and for use of my premises whenever he had a recording job.
Mr. Asch had been paying off a judgement against assets of the Disc Company at 117 West 46 Street including equipment, furniture and fixtures, books and records. When he was unable to continue these payments the Marshall gave notice of a public sale and came to 117 West 46 Street to auction off these assets. As I was already operating from this address and felt it would be to my benefit to continue doing so, I borrowed money from a friend, Mr. George Mendelssohn of Vox Productions, and offered the Marshall a sum for the complete assets at actual resale value. At the time of the sale there were no bankruptcy proceedings. The Marshall verified with the attorney for the creditor that it was satisfactory and legal and upon payment of this sum sold and turned over the assets to me. In order to guarantee Mr. Mendelssohn his money I formed a corporation (naming him as one of the officers) and the corporation took a mortgage and paid back Mr. Mendelssohn.
As I sincerely believe that Mr. Asch is one of the best men in the record business (that the circumstances which have forced him into bankruptcy were actually beyond his control) I have made arrangements with him to advise me in the creating of a new record label. I have allowed him in return to use my premises giving him a desk for his use and a place to keep his own books and records pertaining to the Disc Company, to receive his mail and take messages for him in connection with any matters which pertain to his own operations, concerning either the defunct Disc Company or any other business which he is able to conduct.
