International Radio Corporation
| Industry | Manufacturing |
|---|---|
| Founded | 1931 in Ann Arbor, Michigan, United States |
| Founder | Charles Albert Verschoor |
| Successor | Argus, Inc. |
| Headquarters | Ann Arbor, Michigan , United States |
| Brands | Kadette |
| $2,700,000 (1937) | |
Number of employees | 150 (1936) |
The International Radio Corporation (IRC) was a U.S.-based manufacturer of radio receivers located in Ann Arbor, Michigan. Established in 1931 by entrepreneur Charles Albert Verschoor with financial support from Ann Arbor’s mayor William E. Brown, Jr. and other local investors, IRC developed a range of radios under the Kadette label. Their innovations included the first widely produced AC/DC radio, the inaugural pocket radio, and the earliest clock radio. To offset the seasonal variability in radio sales, IRC expanded into camera production, which ultimately led to the creation of the Argus brand. In 1939, IRC divested its radio operations to W. Keene Jackson, a former General Sales Manager; his Kadette Radio Corporation operated for only one year. Following World War II, International Industries and its research branch became fully integrated subsidiaries of Argus, Inc., marking the end of the International name.
Formation
The International Radio Corporation was founded in 1931 in Ann Arbor, Michigan by Charles Albert Verschoor, an experienced businessman with a background in automobile manufacturing and radio production dating back to the 1920s. Verschoor obtained $10,000 in startup capital from Ann Arbor’s mayor William E. Brown, Jr., along with contributions from local entrepreneurs who sought to build a growth-focused company during the economic hardships of the Great Depression. The firm operated from a repurposed furniture factory located at 405 Fourth Street on Ann Arbor’s west side.
Initial products and financial success
On August 7, 1931, IRC released its debut radio model known as the International Duo. This receiver was capable of tuning into both local longwave and European shortwave broadcasts. Its dimensions were , making it more compact than typical table radios available at that time.
Soon after this launch, IRC introduced the Kadette—the first mass-produced AC/DC radio. This model featured four vacuum tubes and came housed in a novel plastic cabinet made from Bakelite, a low-cost material that significantly enhanced IRC’s profitability. The cabinet was manufactured by Chicago Molded Products Company and represented the first use of plastic for radio casings, blending traditional Gothic aesthetics with contemporary materials. The Kadette’s circuitry allowed it to operate on either AC or direct current (DC) without requiring a power transformer, resulting in a device that was more affordable, compact, and lightweight compared to competitors. It could be plugged directly into household wall outlets. Additionally, IRC provided a conversion kit enabling consumers to adapt Kadettes for battery operation in automobiles, effectively pioneering the car radio industry.
The commercial success of the Kadette brought about "nearly immediate profitability" for IRC; by 1933 it stood as the sole Ann Arbor business continuing to distribute dividends to shareholders despite widespread economic adversity during the Great Depression. While Ann Arbor's economy showed relative stability compared to other regions, many local enterprises faced order cancellations and halted dividend payments.
Subsequent Products and Financial Challenges
After introducing the Kadette, IRC brought to market several groundbreaking products: the Kadette Jr., recognized as the first pocket-sized radio globally; the Kadette Jewel, offered in a selection of five color schemes; the Kadette Classic, crafted from three distinct plastics; and the Kadette Clockette, designed to resemble a compact mantel clock available in four wooden case variations. Additionally, IRC developed accessories such as the Tunemaster, a portable remote control for radios, and the Kadette Autime, which was the pioneering mass-produced clock radio.
By 1937, with sales reaching $2.7 million, IRC unveiled a 10-tube Kadette radio priced at $19.95—positioned competitively against four- and five-tube sets when competitors’ 10-tube models were priced at $100 or more. Nevertheless, these radios incorporated three ballast tubes and were largely criticized as “$20 sets with extra ballast tubes.” This design echoed earlier 10-tube radios produced by Verschoor under the Arborphone name, which featured only five operational tubes alongside five non-functional ones.
The dealer profit margins on IRC’s 10-tube Kadettes stood at roughly 15%, significantly lower than those of rival premium models. Dealers were obliged to stock slower-moving products to qualify for 10-tube radios, prompting some to apply unauthorized discounts on less popular items. This practice severely diminished overall profit margins down to approximately 5%, leading many dealers to discontinue carrying Kadettes altogether. Despite IRC’s attempts to regain dealer loyalty, substantial harm was done to its market position.
Expansion into New Markets
Although IRC’s radio business initially thrived, it experienced pronounced seasonality, with peak sales in winter due to improved reception and consumer habits before air conditioning became widespread. To mitigate these seasonal fluctuations, Verschoor pursued new product lines that could be manufactured economically and achieve strong summer sales. He selected an affordable camera inspired by Leica designs, which was introduced as the Argus and quickly gained popularity in 1936.
That same year, IRC employed around 150 individuals and sold its Kadette AC/DC patents to RCA, signaling a strategic move toward broadening its product portfolio beyond radios.
Final Phase
Under mounting pressure, Verschoor departed from IRC in 1938, and by the early 1940s, leadership transitioned to a more contemporary management team.
In 1939, International Industries divested its radio division to former General Sales Manager W. Keene Jackson, who renamed it Kadette Radio Corporation. Jackson sought to enter the television market with affordable sets aimed at American consumers. However, Kadette encountered difficulties similar to those faced by IRC and ceased operations within a year.
While the radio sector declined, International Industries achieved notable success with its Argus camera and optical products. By 1942, Argus, Inc. reported revenues of $4.8 million and employed 1,200 workers during World War II. Following the war, International Industries along with its International Research division became wholly owned subsidiaries of Argus, Inc., resulting in the retirement of the International brand name.