Hi Damon,  Early Aeolian records were vertically cut (as were Edison
Diamond Disks, early Pathes, and all cylinder records).  The 1916 black
record with gold label is most likely one of those.  In order to play
it, you'll need to find a vertical adapter for your Victrola.  Many
brand phonographs, such as Brunswick and Sonora, featured tone arms and
reproducers that pivoted to play vertically-cut records.  These also
had a second, permanent sapphire ball stylus to play these records
(replacements are available from APSCO).

If the black record with blue label says "lateral cut" it should play
fine on your Victrola.  The fact that it says "Lateral" on the label
sounds to me that it was made as Aeolian was transitioning from
vertical to lateral recording.   The surface noise and lower sound
quality is probably an indication of simply an overplayed, worn
record...perhaps the previous owners weren't real good about using a
new steel needle for every play!

Hope this helps!

Jim Canavan
Alexandria, VA
http://members.aol.com/vapianola