Classic Mode

Music Trade Review

Issue: 1898 Vol. 27 N. 16

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
• , ? . t EDWARD LYMAN BILL-*—?
Editor and Proprietor
PUBLISHED EVERY~SATURDAY
~~
3 East 14th St., New York
SUBSCRIPTION (including postage), United States,
Mexico and Canada, $2.00 per year; all other countries,
f3.oo.
ADVERTISEnENTS, $2.00 per inch, single column, per
insertion. On quarterly or yearly contracts a special dis-
count is allowed. Advertising- Pages $50.00, opposite read-
ing matter $75.00.
REMITTANCES, in other than currency form, should
be made payable to Edward Lyman Bill.
Entered at the New York Post Office as Second Class Matter.
NEW YORK, OCTOBER 15, 1898.
TELEPHONE NUMBER, 1745--EIQHTEENTH STREET.
THE KEYNOTE.
The first week of each month, The Review wil)
contain a supplement embodying the literary
and musical features which have heretofore
appeared in The Keynote. This amalgamation
will be effected without in any way trespassing
on our regular news service. The Review will
continue to remain, as before, essentially a
trade paper.
THERE MUST BE A REFORM.
TF there is any one topic that deserves to
be ventilated persistently, it is the
evil of price-cutting' to which we referred
editorially last week. This thing has gone
so far that one is compelled to believe that
many manufacturers and dealers are not
strong enough to break away from this
price-cutting evil, or else lack a proper
consideration for the ethics of business or
do not understand the conduct of business
or perhaps do not comprehend where their
interests lie.
The manufacturer who sells pianos at an
advance which about covers the " cost of
manufacture " simply gets his money back,
and the trouble is, he does not include in
this connection many of the important
items which enter into this " cost of doing
business."
Again, we have many dealers cutting
prices to a little above the invoice price,
thereby selling instruments at less than
cost, for apparently many do not include
in their cost of selling the fundamental
expenses, such as rent, hire, cartage, in-
surance, and the hundred and one other
items which are to be reckoned with in the
conduct of an everyday business.
How is this going to end ?
Where is the profit coming in ?
This is not the age for sacred mystifica-
tion or legerdemain in traJe. If there is
any essential to progress, it is that the
manufacturer should be an earnest seeker
after knowledge, and at least understand
his business.
This cutting and slashing of prices should
end and it cannot end too soon.
There must be a reform. There must
be an upward movement in prices as there
is in the quality of goods; it is the only
panacea for the ruinous competition which
is dragging the commercial side of the
piano trade down to the level of the bicycle
industry.
Meanwhile it is gratifyingly observable
that many manufacturers and dealers rec-
ognize the deplorable condition of affairs
which exist and are swiftly getting away
from the mere competition of low prices
to a competition of higher-priced wares, of
attractive styles and better made pianos
generally.
This is due not so much to the dealers
as to the purchasers who have had a sur-
feit of the "cheap" for the past few years,
and who are now waking up to the fact
that it is impossible to secure good values
at low prices.
With this tendency abroad it behooves
dealers to become more enthusiastic re-
garding the high-priced instruments which
they handle. It will pay them to give
prominence to the higher-priced pianos.
With them they can build up a trade that
the popguns of shoddy and price-cutting
can never batter down.
Of course there will always be a demand
for cheap pianos, but if they are sold in
their class and at the proper price, the
high-priced instruments cannot fail to
come in for that consideration which they
merit. This in the end will mean larger
profits for the dealer, a living profit for the
manufacturer and a higher degree of pros-
perity in the industry at large.
FREIGHT RATES AND PRICES.
"FHE matter of freight rates is at present
attracting considerable attention from
manufacturers and dealers in all parts of
the country. The National Piano Manu-
facturers' Association, is making a thor-
ough investigation of the question with a
view to an amelioration of the excessive
charges now prevailing. In the vSouth,
piano and organ dealers have organized for
the purpose of making a united effort to
secure a change of freight classification
from first to second class on pianos and or-
gans. They intend to agitate the matter,
and are interesting influential parties in
this city as well as in the prominent music
trade centers of the West, so that a strong-
case can be worked up for presentation to
the officials of the prominent railroads with
which they do business.
One of the important factors which help
to fix the price of instruments is the rate
charged for freight. If the factory is quite
a distance from the receiving point, the
freight charge is an item which gives con-
siderable worry to dealer and manufac-
turer. This, of course, accounts for the
increasing attention given to the subject
of freight in most industries.
Manufacturing establishments of suffi-
cient importance to have their executive
office divided into departments, and whose
trade is not absolutely local, are now
equipped with a freight department.
This department fixes prices on business
carrying freight rates, and its function
makes it a valuable adjunct of the sales
department. It is believed that the new
officials are capable of almost accomplish-
ing the difficult task of annihilating space.
They can certainly make a competition for
desirable business extremely interesting"
for a local manufacturer who deludes him-
self with the belief that the hundreds of
miles separating him from others in the
same line of trade afford him substantial
protection. In this era of associations,
organizations, trade meetings and business
conferences, it may be remarked that no
association thus far appears to have been
formed of heads of freight departments to
compare notes as to how this special line
should be conducted for mutual benefit.
It would be very interesting indeed if they
could be broug'ht together in some way
and induced to tell what they actually
know about freight rates!
OUR GROWING EXPORT TRADE.
T H E figures bearing on the imports and
exports of musical instruments for
the month of August and the eight months
ending that date—the latest period for
which they have been compiled—which
appear elsewhere in this paper, are impor-
tant and valuable reading. They demon-
strate satisfactorily, we think, that the
tariff law, under which we are at pres-
ent operating, augments the interests of
American manufacturers—at all events
those interested in the music trade in-
dustry.
If we go back a few years—to the Cleve-
land regime—we cannot fail to remember
the enormous imports of musical instru-
ments which poured into this country from
all parts of Europe, while our export trade
was comparatively insignificant.
What do we find to-day and in this re-
port referred to?
An immense increase in exports and a
steady decrease in imports, as has been
the case month after month since the pres-
ent tariff law went into force. For the
eight months ending August, our export
trade in musical instruments shows an in-
crease amounting in value to $163,220 over
that of the same period last year, while
the decrease in imports for the same period
amounts in value to $87,788.
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
occasioned by lack of business due to the
in war or any man who enters upon busi-
They not only prove
contraction of wants and the consequent
ness to-day, without such an experience
that home trade is conserved and benefited
paralysis of the manufacturing industries.
and preparation as insures the use of the
by protective laws, but they furnish an
There are other factors in the situation
best up-to-date methods, is almost sure to
idea of the perfection and excellence of our
lying far deeper than these and which are
meet disaster.
prodiicts when they continue to win such
of a character not to be so easily recog-
perience in business are alike essential to
a wide appreciation on the Eiiropean con-
nized.
success.
tinent.
by F. R. Boocock in his recent address be-
These figures are significant and of the
utmost importance.
This is the era of expansion.
We have
These were cleverly summed up
fore the New York State Bankers' Associa-
Experience in war and ex-
To make progress the members of the
music trade
industry must work along
added to our possessions during the past
tion when he said:
"I venture-to say that
those accepted lines which are now recog-
six months; the world has become awak-
reduction in trade has less to do with the
nized by the most eminent men in the
ened to the industrial progress
majority of
commercial world as the cornerstone of
of
this
failures
than the .abuse of
country, and a different conception of our
credit.
power prevails both in the fields of war-
ing for and giving of credit.
fare and manufactures.
that the abuse of credit largely occasions
return.
reduction in trade."
manufacturers have adhered to, resulting
It is meet that with our expansion as a
nation there should be an increased de-
I mean the abuse both in the ask-
I believe
In 1892 we witnessed a phenomenal year
success.
It is utter folly to make pianos
and sell them without getting money in
Yet this is the plan which many
in irresponsible parties being given credit
Credit was used to
who are utterly undeserving of it, while
its fullest extent by buyers and freely con-
from those deserving, cash is often de-
old saying, and while we trust it will prove
ceded
manded.
true as applied to our new possessions in
lavishly.
Porto Rico, Hawaii and the Philippines,
their
yet it is a tribute to our wonderful facili-
placed extravagantly with manufacturers,
ties, intelligent labor, and our increasing
and manufacturing industries ran night
comprehension of the value of the foreign
and
market that this country is becoming a live
market became congested and stagnation
may be said to be fully
factor in the great competitive trade battle
followed.
Wholesale trade in this city as well as in
which is being fought so keenly in the Con-
business houses with immovable stocks of
the Western centers of
tinents of Europe and Asia, and in which
far greater size than good judgment would
quite active, showing that there is a healthy
manufacturers in the music trade are be-
justify and the liability for which occasion-
and natural growth of business which is
coming quietly but none the less surely
ed their embarrassment.
destined to continue from now on.
active participants.
hundreds of business houses that had been
While the fall season has been rather
Musical instruments which come under
so loose in their extension of credits and so
slow in opening up, and there has been
the heading of "small goods " are now
lenient in their collections that the depres-
some little disappointment on this account,
being shipped from this country to Europe
sion found them with enormous stocks on
it is better undoubtedly that trade should
in large quantities and are excelling in pop-
hand and large outstanding accounts in
mature
ularity similar European wares right in
addition.
their home
lowed.
mand
for
abroad.
our
manufactured
products
"Trade follows the flag" is an
market.
Practically a few
in business activity.
by
sellers.
bought
Retailers stocked their stores to
greatest
day
Consumers
capacity.
to supply
the
Orders were
demand.
The
The collapse found hundreds of
Heavy
There were also
losses inevitably
fol-
It was the houses whose credits
All this misunderstanding can
only be obviated by the inauguration of a
credit system.
The sooner the better.
\ 1 7 I T H the opening weeks of October
the music trade season of
in a natural
1898 99
inaugurated.
the industry is
way than that it
should come in the form of the "boom "
—so much talked about.
years ago all these stringed instruments
were intelligently managed and whose col-
One gratifying phase of the fall trade so
were made in Europe and imported here,
lections were closely made that found it
far developed is the increasing demand for
and so it is in other departments of the
possible to withstand the panic without
the better grade of pianos.
music trade.
strain or special embarrassment. With less
report in retail circles in New York and in
This cheering condition of things is not
failures there would have been less con-
the leading cities of the country.
merely confined to this industry, but is
sternation, and with more confidence there
we trust, indicative of the turning of the
being
would have come quicker recovery.
tide from the " cheap " regime of the past
felt
in
all
manufacturing
lines
throughout this country.
Past experiences should open the eyes of
It is hardly possible to analyze the facts
all business men to the necessity of con-
and figures bearing on this subject without
ducting business on more up-to-date lines,
becoming more or less enthusiastic over
particularly giving more attention to the
the industrial progress of the Nation and
matter of credits.
our onward march toward conquering the
chants who ten years ago were commercial
markets of the world.
lights who to-day are floundering upon a
There are many mer-
sea of lost hope and failure simply because
CREDIT ABUSES.
they have not kept pace with the march of
|\j()THING, perhaps, was more clearly
demonstrated during the years of de-
pression now just passed than the weak-
ness of our credit system.
It was proved
events.
Mistakes have been made, and
the biggest mistake of all has been the
absence of a credit department.
During the last twenty-five years there
to be weak in almost every essential part;
has been a very material change in almost
in legal protection, in business customs,
everything connected with our existence.
in confidence between buyer and seller, in
War, for example, is at present conducted
banking relations and in all matters where
on very different lines from what formerly
co-operation is essential to success.
It is
prevailed and the change in business is no
not sufficient to explain that panics are
less conspicuous, Any nation that engages
This is the
It is,
few years to a common-sense comprehen-
sion of the requirements of the times.
Permanent Receiver Appointed.
[Special to The Review.]
Utica, N. Y., Oct. 11, 1898.
At Oswego yesterday Judge McLennan
appointed J. A. Evans permanent receiver
of the Zimmerman Autoharp Co., of
Dolgeville. His bond was fixed at $25,000.
A St. Louis Incorporation.
[Special to The Review.]
vSt. Louis, Mo., Oct. 10, 1898.
The Kieselhorst Piano Co. was incor-
porated Saturday with capital stock of
$20,000, fully paid. The stockholders are:
E. A. Kieselhorst, J. G. Hepburn, J. J.
Kleekamp, C. T. Webster and R. A.
O'Neil.

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