The 1950s building industry did not have cement backer board. The product that is now standard for wet-area wall substrates — cement board, fiber-cement, or glass-mat gypsum — was not commercially available until the late 1970s and did not become a code expectation in California until well into the 1980s. What 1950s tile installers used instead was organic mastic adhesive applied to standard drywall, sometimes over a wire-mesh and mortar bed where the contractor was more careful. The mastic method held tile in place, but it did not waterproof the wall behind it. Every small failure in the grout or at the tile edge — and grout is not waterproof regardless — allowed moisture to reach the paper-faced gypsum underneath.
Over fifty years, even modest moisture infiltration compounds. When we open a 1950s North Highlands shower wall, we commonly find some combination of: drywall that has softened or partially decomposed at the base of the walls, framing lumber that has taken on moisture at the bottom plate, and in some cases subfloor damage that extends beyond the shower footprint into the bathroom floor. The extent varies with how well the grout and caulk were maintained over the years. We quote subfloor and framing repair as a separate, visible line item rather than absorbing it into the tile price, so the owner sees what was found and what it costs.
The rebuild protocol is consistent: strip everything to the framing, inspect the framing and subfloor and repair what needs repair, install cement board or fiber-cement backer throughout the wet zone, apply a sheet or liquid membrane waterproofing layer before any tile is set, then set tile into a latex-modified mortar bed with full back-butter coverage. Grout joints are sealed. The result is a shower wall that is waterproof at the surface and at the substrate, not just at the tile face.
Owners sometimes ask whether they can re-tile over the existing tile. In a 1950s bathroom with a drywall substrate, we do not do it: the added weight of a second tile layer on an already-compromised substrate creates the conditions for a larger failure later. The tile has to come off to see what is underneath, and once it is off, doing the substrate work right costs less than coming back a second time.