Dorothy Hammerstein spouses to marry in 1929. Oscar also had two children from his first marriage: William Hammerstein and Alice Mathias. His marriage to Dorothy lasted until his death in 1960. They had a son together, James Hammerstein. Between the 1930s and the 1950s she operated Dorothy Hammerstein Inc, a high-profile interior design business, with clients on both coasts of the United States. In 1949, along with her husband and the novelists Pearl S. Buck and James A. Michener, she was a founder of Welcome House, an organization that facilitates the adoption of children of American and Asian parents. From its inception
Arthur Hammerstein productions were "Luana" and "Ballyhoo" in 1930, which were considered failures. Hammerstein suffered bankruptcy in 1931 due to some musical failures and went into retirement. In 1925-1927 Hammerstein built what is now known as the Ed Sullivan Theater at 1697 Broadway in Manhattan. Hammerstein made an appearance as himself in an episode of the film series "Popular Science" in 1949. He was one of the writers of the song "Because of You," a major hit (#1 for 10 weeks) for Tony Bennett in 1951. Hammerstein wrote the song in 1940. It was used in the film "I Was an American