According to family history, Anastasios Stathopoulo (b. 1863) began constructing musical instruments in his home town of Sparta, Greece in 1873. He moved to the U.S. with his family is 1903, settling in New York City, where he produced a full range of stringed instruments bearing his own name up until the time of his death in 1915. The company, which soon became known as The House of Stathopoulo, continued under the direction and ownership of his wife, Marianthe (b. 1875) and eldest son, Epaminondas (Epi [b. 1893]).
Following Marianthe´s death in 1923, The House of Stathopoulo was incorporated with Epi as president and majority shareholder, his sister Alkminie (Minnie [1897-1984]) as treasurer, and brother Orpheus (Orphie [1899-1973]) as secretary. They immediately announced that"[t]he new policy of business [would be] the production of banjos, tenor banjos, banjo mandolins, banjo guitars, and banjo ukuleles under the registered trademark of Epiphone." The name "Epiphone" was a combination of Epi's nickname with "phone," the Greek word for sound. Their elegant Recording line of tenor banjos was considered to be among the finest ever made. These were joined in the late 1920s by a full line of Recording model guitars. In 1928, the company's name was changed to The Epiphone Banjo Co.
The Masterbilt series of guitars was introduced in 1931 and marked Epiphone´s entrance into the production of modern, carved, f-hole archtop guitars, based on violin construction principles. Indeed, at the time of their introduction, the Masterbilt guitar line was the most complete selection of "f"-hole guitars available from any instrument maker in the world. Complementary Spanish and Hawaiian flattop models and carved-top mandolins were likewise included under the Masterbilt Aegis. Soon, Epiphone advertisements would claim that it was "The World´s Largest Producer of First Grade Fretted Instruments." Whether this was an accurate boast or not, it set the stage for a two-decade rivalry between Epiphone and its largest competitor, Gibson.
By 1935, the company was now known simply as Epiphone, Inc., and was producing its Electar brand of electric Hawaiian and Spanish guitars, as well as amplifiers which were designed by electronics pioneer and Danelectro founder, Nat Daniels (1912-1994). That same year marked the introduction of the flagship 18.375 in. Emperor model archtop guitar and signaled the redesign and enlargement of the company´s entire Masterbilt archtop line.
Notable Epiphone innovations in this era included the first patented electronic pickup with individual pole pieces and the distinctive Frequensator tailpiece. Both were designed by salesman and acknowledged jack-of-all-trades, Herb Sunshine (1906-1988), and in production by 1937. In 1940, the company also introduced a full line of well respected bass violins produced under the watchful eye of the youngest of the Stathopoulo brothers, Frixo (1905-1957), who had joined the firm in the early 1930s.
During this period, Epiphone's growing product line was considered to be second to none, and could boast such endorsers as George Van Eps (with the Ray Noble Orchestra), Carmen Mastren (with Tommy Dorsey), Allan Reuss (with Benny Goodman's band), and many, many more.
Epi Stathopoulo died from leukemia in 1943 at the age of forty-nine, and this, combined with the many hardships incurred during World War II, set the company on a downward spiral. Orphie Stathopoulo, who took over as president, was unable to recapture the momentum of the prewar years, and constant friction between he and his brother Frixo (now vice-president) began to pull the company apart at the seams.
In 1951, simmering labor problems resulted in a strike which shut down the New York plant for several months. During this time, Orphie sold a stake in the business to the large distribution company, Continental Music. Continental moved production to Philadelphia, and most instruments manufactured from 1952 to 1957 were made there. It is doubtful, however, if much was produced in the final two years, as Epiphone was rapidly being overtaken by new entrants into the guitar market, notably Fender and Guild, the later of which had ironically been started by many former Epiphone employees under the leadership of Alfred Dronge and former Epiphone executive George Mann.