Chicago Transit Authority signed to Columbia Records late in 1968 and recorded their first album in late January 1969 at CBS studios on 52nd Street in New York City. While Guercio had recently produced Blood, Sweat & Tears' second album (which proved to be a huge smash), he did so to raise capital for his band, and to secure the contract with Columbia (which was reluctant at first to have two jazz-rock bands since Blood, Sweat & Tears was already on their roster). By the end of the "Chicago Transit Authority" sessions, the band had decided they wanted it to be a double album. Skeptical, as the band had no track record, Columbia agreed to the concept only if the group would take a royalty cut.