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THE MUSIC TRADE REVIEW
TWENTY-FIRST YEAR.
J j* J* EDWARD LYMAN BILL** ^ J*
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, $4.00.
ADVERTISEMENTS, $2.00 per inch, single column, per
insertion. On quarterly or yearly contracts a special discount
is allowed. Advertising Pages $50.00, opposite reading 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, JULY 28, l90a
TELEPHONE NUMBER, 1745--EIQHTEENTH STREET.
THE KEYNOTE.
The first week of each month The Review
oontains a supplement embodying the literary
and musical features which have heretofore
appeared in The Keynote. The amalgamation
is effected without in any way trespassing on
our regular news service. The Review con-
tinues to remain, as before, essentially a trade
papier.
well to take the situation calmly during
the summer months. A little relaxation
from business cares only gives one renewed
energy to unravel the business problems
which are bound to be with us in the early
fall.
One of the best preserved piano men for
his years told us recently that he was
working just half the time which he did
formerly and performing the same amount
of work which he did in years ago, with
greater ease, and that he attributed his
ability to do this wholly to the fact that
regular rest renewed his energy, made him
healthy in body and mind so that he could
toss off with ease the usual perplexities of
trade.
ON THE DECLINE*
A LONG in '98 when one music trade
paper was devoting columns to argu-
mentative talk in favor of the establish-
A LITTLE REST.
ment of a piano trust, and other weaker
jVTATURALLY trade is quiet just now, papers had taken the tip and fallen in line
and how can we really expect it to be with surprising alacrity, The Review took
otherwise when we have been passing precisely the opposite position, although
through such an extended spell of torrid- much private argument was brought to
ity? Of course there is "something doing" bear upon the editor to advocate the other
at all times, but not in sufficient magni- side. Occurring events have demonstrated
tude to satisfy the demands of the business completely the soundness of our position
man in whatever line of productive or dis- in advising our friends to remain aloof
from participation in the trust scheme,
tributive industry he is engaged.
Like conditions exist during nearly which was nothing more nor less than a
every summer and there is a steadily purely speculative one, originating in the
growing sentiment here in America which minds of scheming promoters who used, in
is in favor of taking lengthy respite from a certain way, a man closely identified with
business during the summer months. the piano industry who was at that time
Men seek relaxation across the sea, in the practically bankrupt.
mountains or at the various ocean resorts,
Certain sections of the trade press were
instead of keeping eternally in the busi- won with alluring promises.
ness grind as formerly, but there is noth-
Back files of The Review will show that
ing in the business outlook which has during those days we predicted the collapse
come to our notice that warrants anyone of a number of trusts. Events have
in stating that "the bottom has dropped proven the correctness of our predictions,
out."
and a number of industrial consolidations
Generally speaking the business situa- effected-during 1898 and '99 have already
tion is sound and satisfactory. Naturally dissolved and others are preparing to
the process of readjustment of reduction do so.
in prices after a boom is never an agreea-
The reasons which in some cases war-
ble one, and creates more or less anxiety ranted and even necessitated the consoli-
lest the reaction go too far, but the conser- dation of competing plants and the cen-
vative business man, whether engaged in tralization of the control of great indus-
manufacturing or selling pianos, cannot tries in strong hands do not apply to every
fail to recognize the fact that we are pass- trade and that many of the manufacturers
ing through this process very easily and who were enticed to sell their plants
safely, and that it has been attended with to the trust syndicates regret their ill-
a good deal less shock than there was at advised action, is now well known. Some
one time reason to fear.
of the most convincing arguments to which
On the whole the situation is most en- they gave heed in their eagerness to better
couraging, and it is difficult to imagine their condition, have been contradicted
how we could have returned to a condition with emphasis by recent experience. There
of stable equilibrium more easily or with are many bitter complaints against pro-
less shock to confidence than we are doing fessional promoters and speculative finan-
at this moment. This leads up to the sug- ciers who made millions out of organized
gestion that the business man would do industrial combinations, which have re-
sulted in bringing about disappointment
for all concerned, save themselves, for in
nearly every case, as The Review claimed,
the trust promoter has gotten solid cash
for his work.
Splendid arguments were made in favor
of placing business enterprises in the hands
of a strong central management in touch
with every part of the country, and with
facilities for a national distribution of pianos
which would be regulated to the varied re-
quirements of the market.
It was pointed out that a trust organiza-
tion in this industry would lead to closer
alliances with responsible dealers and guard
them against the invasion of their territory
by adventurers in business that would de-
moralize retail trade. Then came the econ-
omy of the centralized management guard-
ing against any useless duplication of effort,
and a large capital based on millions of
dollars' worth of values which would natu-
rally minimize the difficulties of financing
and open the way to bank alliances on a
scale impossible to the individual piano
manufacturers dependent upon local banks.
To such arguments some piano manu-
facturers were willing to yield, because
they seemed sound and reasonable. Events
have proven, however, that the financing
of these great industrial consolidations is
not the simple problem that was stated.
Indeed, unusual differences presented them-
selves when conservative bankers began to
look with disfavor upon industrial securi-
ties as collateral. As to the close touch
between the management of the industrial
combinations and dealers, arbitrary rules
even enforced with scant courtesy by sub-
ordinates have largely taken the place of
the good understandings which formerly
existed between manufacturers and their
customers.
Trade moves with the least friction up-
on ways which are lubricated by mutual
confidence and a sympathetic relation be-
tween seller and buyer. Credits are some-
what less liberal under the trust form but
are no better safeguarded than under the
old system. The economies of centralized
management are still problematical. Great
as they appear to be in some depart-
ments there is reason to believe that they
are offset by extravagance in others.
As to the relations of the combinations
to organized labor they are still undeter-
minable, and it would be unsafe to pre-
dict what results would follow the read-
justment of wages to lower selling prices
and narrower margins of profit.
Trusts, as the great combinations are col-
loquially termed, have not proven to be
the great success that was predicted for
them, and the "trust scare" now lies among
those people who have thrown their modest