Music Trade Review

Issue: 1905 Vol. 40 N. 16

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
8
THE
MUSIC
TRADE
KOTO
EDWARD LYMAN DILL.
Editor and Proprietor.
REIVi£W
pose to uphold the dignity of the music trade. Reputable merchants
in other lines have long since abandoned the throwing in of acces-
sories in order to close a sale and why should piano merchants
adhere to worn out customs, thereby lessening their prestige and
reducing their profits ? #
One thing is certain, if these far Western men do have lively
advertising tilts in the columns of the papers and bloodless
battles, they are keen business men, broadminded as well, and the
stand that they have taken to extinguish the gift enterprise shows
them to be farsighted merchants.
J. B. S P I L L A N E , M a n a g i n g E d i t o r .
EXECVTIVE AND REPORTORIAL STAFF:
GEO. B. KELLER,
W. N. TYLER,
EUILIE FRANCIS BAUKR,
WM. B. WHITE.
W. L. WILLIAMS,
A. J. NICKXIN,
GIO. W. QUBRIPEL.
BOSTON OPF1CE:
CHICAQO OFFICE:
EBNKST L. WAITT, 255 Washington St.
PHILADELPHIA OFFICE:
E. P. VAN HARLINGEN, 80 La Salle St.
MINNEAPOLIS AND ST. PAUL:
R. W. KAUFFUAN.
E. C. TORREY.
SAN FRANCISCO OFFICE:
5 T . LOUIS OFFICE :
CHAS. N. VAN BUREN.
ALFRED METZGER, 426-427 Front St.
Published Every Saturday at 1 Nadison Avenue, New York.
Entered at the New York Post Office as Second Class Matter.
SUBSCRIPTION (including postage), United State*, Mexico and Canada, $2.00 per
year; all other countries, $4.00.
ADVERTISEMENTS. $2.00 per inch, tingle column, per insertion. On quarterly or
yearly contracts a special discount is allowed.
Advertising Pages, $50.00; opposite
reading matter, $76.00.
REMITTANCES,
in other than currency form, should be made payable to Edward
Lyman Bill.
THE ARTISTS'
DEPARTMENT
On the first Saturday of each month The Review contains in its
"Artists' Department" all the current musical news. This is effected
without in any way trespassing on the size or service of the trade
section of the paper. It has a special circulation, and therefore aufr
ments materially the value of The Review to advertisers.
mtrrmDV^DUMA
M*MirV*V»i-ii« • - «
MANUFACTURERS
The directory of piano manufacturing firms and corporations
found on
» n °t h er page will be of great value, as a reference for
dealer8
and
otheri
LONG DISTANCE TELEPHONE-NUMBER
1745 GRAMERCY.
NEW YORK. APRIL 22. 19O5.
W
HILE the dealers have been having a warm time in music
trade circles on the Pacific Coast, the fact should not be
overlooked that they have also taken important action upon matters
of considerable interest to the trade in all sections. They are
endeavoring to do away entirely with the gift element of the business.
It is generally admitted that the throwing in of a stool and scarf
as an inducement in piano bargains is not good business. Years
ago it might have been considered fitting, but we have out-
grown those early and somewhat crude conditions. A stool and
scarf should, of course, go with a piano, but they should be paid for
separately. To include a stool and scarf in a piano sale seems like
throwing in a pair of suspenders and a necktie to close a bargain in
the clothing business.
N
O good reason can be advanced why the piano business should
not stand with other dignified divisions of trade, and we
heartily commend the attitude of the San Francisco dealers in the
stand that they have taken to do away with the giving away of stools
and scarfs. They have agreed to eliminate that practice from their
piano sales after May ist. It is just as reasonable to ask a jeweler
to throw in a chain and charm with every watch sale as to expect a
man to throw in a stool and scarf.
The San Francisco dealers have also established a uniform rate
of cartage, and another important move which was chronicled by the
Review's San Francisco representative in an earlier issue of the
paper was that they have agreed not to advertise pianos for less than
$200, and not only have they agreed as far as the local advertising
goes, but they have gone further—they have agreed that no new
pianos shall be sold below that price in the warerooms.
A
S parties to this agreement were included practically all of the
important music trade institutions of San Francisco, and the
future effect of this new move will be watched with exceeding
interest. This agreement has been caused by the tendency to cut
and slash prices to such a degree that it has been conceded that the
legitimate trade interests have suffered largely thereby.
Certainly this position assumed by the San Francisco dealers is
deserving of the heartiest commendation for it shows that they pro-
LEADING Pacific Coast dealer while visiting these offices last
week remarked that he had been much interested in the various
editorials appearing in The Review arguing the abandonment of the
special brand pianos entirely. He remarked that he had always
preferred to exploit pianos under the manufacturer's name, and that
while he had done a vast amount of advertising he had carefully
refrained from exploiting pianos under his own name, or other spe-
cial brands that he might control.
He took occasion to say that The Review was doing splendid
work in creating an opposition to the extension of the special
brand business. Continuing he sad, "The excerpt from the adver-
tisement of Kohler & Chase, which you reproduced, shows clearly
that the most reputable dealers exploit pianos bearing their own
name as equal to the best makes."
A
T
O our minds, the only way to intelligently grapple with this
special brand problem is to carry on an argumentative cam-
paign so that manufacturers and dealers may fully realize the danger
which will result from a continuance of this particular business.
In the end it can have no other effect than to cheapen the retailing
of pianos, and to lower the level of the trade to an astonishing degree.
Even now, some of the manufacturers of the higher grades of instru-
ments complain bitterly of the noticeable lack of sales of their own
instruments by dealers who have held the agency of their pianos
for many years.
NE manufacturer stated to The Review that since we had
commenced this campaign he had taken pains to investigate
the causes of the slowing down of his sales, and in three cases he
found the lack of business which he was experiencing was due almost
wholly to the fact that the dealers were pushing pianos bearing their
own names, which they had manufactured for them, and which they
pronounced in their advertising and through the mediumship of
their salesmen to be equal in every respect to the instruments famous
in piano history. They were simply using the great names to draw
the people in, and when once inside the warerooms all of the energy
was placed on the sale of the "just as good" instrument which, of
course, meant that the old names were used as drawing cards to sell
the new, or special brand pianos.
O
F course these are purchased at low prices and are sold as a
rule at higher figures than their actual value should entitle
the dealer to receive from them. Large profits are considered an
essential to retailing, and many of the dealers are devoting their
energies to the selling of cheaper instruments at prices which in
many cases are far beyond their actual worth.
There must be a halt to this business else the trade will suffer
severely. Indifference to this traffic will not remove it, for the evil
exists, and what is worse it is growing and it is up to the manufac-
turers to adopt some strenuous rules to suppress its increase.
O
B
Y establishing prices at which their products may be sold at
retail, the manufacurers will create a clear line of demarca-
tion between the instruments bearing the manufacturers' brand and
the special brands created for the dealer.
While recently discussing this important matter, Mr. John Gog-
gan, of the great Texas house of Goggan, stated that he was in favor
of the manufacturer of a standard make insisting on a regular price
being maintained for his pianos at retail. He said that people in
other lines had adopted this plan with satisfactory results, and that
there was no reason why the piano manufacturers should not follow
the same plan with great advantage to themselves. In the opinion of
Mr. Goggan competition from department stores would be reduced
to a minimum if this practice were generally in vogue.
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE
HERE is a marked tendency on the part of dealers to secure
larger installment payments than ever before. This move-
ment should be encouraged, for in no other line of manufactured
products are the installment payments so small for the amount of
merchandise purchased, nor do they extend over such a long time
payment period. Some have given a four years' time in which to
make piano payments. This is passing the safe limit, and every
dealer who is running small payments over a period of years should
revise his time and payment schedule, for unless he has a long purse
he will have locked up his capital. He will realize his profits more
quickly, and he will run his business on much safer lines, and know
where he is at all times in a more satisfactory manner than the pres-
ent long time system. It is said on excellent authority that a depart-
ment store in New York has a million locked up in sales in the dol-
lar a week and nothing down plan. The people who purchase on
that plan are not usually desirable customers and have but little re-
gard for an obligation.
T
REVIEW
entered is not likely to be merely a brief reaction from the recent
depression.
It now seems certain that we have entered upon a period when
industrials take their proper position, and they have won their place
as permanent dividend producing factors. The great consolidations
in the music trade industry seem to have more distinct success.
W
E frequently hear the statement made that piano making is
a young industry in this country, but is it?
Piano manufacturing in this country dates back almost to as
early a period as in England. Early in the past century there
were a number of sporadic piano manufacturing enterprises in at
least three cities of the Union, but none of them survived for a long
period of years until the Chickering institution was launched in 1823.
The kistory of this house is one of continuous growth and ex-
pansion. The principles which Jonas Chickering established have
been followed out by his successors in a manner which has been pro-
ductive of splendid musical results. Chickering, the founder, was a
man of originality and inventive genius. He was not satisfied with
HERE are some who will not sell instruments on
the
instruments of his time and developed them, and probably there
time for less than ten dollars per month. There are
has
been no period during the entire eighty-two years of Chicker-
others who hold to a regular payment of five dollars and
ing
existence wherein investigations, and experiments, have not
some regular dealers who go as low as nothing down and
been
carried on within the walls of the Chickering factory. It is that
a dollar a week. Now the five dollar payment on a piano
unremitting,
experimenting, investigating—and inventing—which
worth $225 is no less a percentage than ten dollars a month
has
made
the
Chickering
not only a piano of the past, but a piano of
on a $450 piano. So if it is well for a man to sell a high-priced piano
the
present,
and
a
piano
with
a great future as well. Complete sat-
on a ten dollar payment plan, it is just as wise to sell a cheaper piano
isfaction
usually
means
retrogression
and the promoters of the
for five dollars and still further down the scale in price for four dol-
Chickering
business
have
never
been
content
to rest on laurels won,
lars. But is it not time to call a halt upon the small payment, long-
they
have
ever
been
pressing
forward
to
the
accomplishment of
time plan ? It seems that the business could be run on a much more
higher
ideals.
satisfactory basis if this matter were carefully considered, and larger
payments and shorter time required.
RECENT Vermont jury awarded damages against the local
labor union for interference with the business of the manufac-
INDUSTRIAL stocks are having their innings nowadays and the
turer.
I past five years have witnessed rapid changes in the sentiment of
At St. Catharines. Ontario, another jury has awarded a damage
the public towards industrial combinations. When the era of con-
of $15,000 against six labor unions in that city in a suit begun by the
solidations began in 1899, about the time when the piano promoter
Gurney Foundry Co., of Toronto, on account of the unions having
was trying to establish a trust in this industry, speculation was ram-
put the Gurney goods on the black list.
pant, and for a time such high prices ruled on industrial stocks that
This establishes a precedent and locates responsibilities and some
vast fortunes were realized by those who participated in launching
piano manufacturers whose instruments have been blacklisted in
the various trusts. Then followed a period of decline, due largely to
some of the literature issued by the labor unions are considering
the enormous issue of securities that were beyond the digestive ca-
strongly the advisability of bringing suits for damages.
pacity of the country. This period of decline was further hastened
by the growth of hostility to trusts, causing a feeling of insecurity
MERICAN pianos will have a steadily growing market in
among holders of the stocks else some effective method might
Cuba, but it should be understood that the population in
develop by which the great consolidations would be declared illegal
Spanish-American countries is not counted in the same way as far
and be compelled to resolve themselves into their original units.
as piano purchasing power is concerned, as we reckon in our north-
ern countries. There are few in the country districts outside of the
DDED to these influences came the depression in trade in 1903-4
planters themselves who have either the money to purchase a piano
which caused earnings to decline, dividends to be reduced and
or a place to put it, and in the cities which have a considerable
in some instances brought about failure of underwriting projects
population there does not exist the same purchasing power as in
with exposures of questionable methods of financing such schemes
cities where the men are employed at good wages. Merchants in
which brought all trusts into serious disrepute.
some other lines are having trouble owing to the peculiarity of old
Prices of all industrial stocks suffered from these unsetting
laws effecting trademarks.
factors, which affected the public mind. Even the strong corpora-
There is an old regulation which provides that the mere use
tions did not escape from the fate which befell the weak ones. The
of a trade-mark for any length of time in Cuba does not estab-
stocks of those continuing to earn and pay dividends declined until
lish proprietary right thereto unless a trade-mark is registered. A
only the reckless or very shrewd cared to purchase them. So un-
number of Cubans have taken advantage of this law and have se-
certain was the prosperity that many holders of such stocks who had
cured the registration of valuable American trade-marks in Cuba in
bought them at higher prices became discouraged and realized as
their own names, thus acquiring the right to actually exclude the
well as they could they were losing heavily on their ventures.
American owner of a trade-mark from the market, although he may
have been selling goods under his trade-mark in Cuba for years.
ITHIN the past six months a remarkable change has occurred,
which, in many respects, is the most extraordinary ever
HERE appears to be a general conspiracy among certain Cubans
known in the financial world. Rapid recoveries in stocks have been
to register some of the most valuable trade-marks as soon as
seen before, but in such cases the stocks themselves have not been dis-
they perceive that the goods bearing the mark are securing general
credited, and a recovery was due simply to an improvement in gen-
sale in Cuba. And then they approach thtc American owner with an
eral financial conditions. Now, however, we see the distrusted
order to sell the Cuban registry of his own mark for a stipulated sum.
industrials of the recent past, making price records which in some
This species of highway robbery is one that should be met by so vig-
cases are very far above the high water mark reached when the com-
orous a protest that the Cuban government would be obliged at once
panies were first organized. So complete has been the restoration
to take measures to meet it.
of industrials that financial editors arc pointing out reasons why the
Imagine a piano manufacturer being approached by a Cuban
trust stocks should be expected to prove profitable investments for
who offers to sell him the right to do business on the island with his
those who have been recently acquiring them.
own product! It might be well for those piano men who contemplate
This change in attitude has of course largely been brought about
doing business in Cuba to register their own trade-marks there. It
by the great improvement in general business conditions, and a con-
will act as a safeguard and they cannot be held up by any one who
viction that a new period of prosperity upon which the country has
desires to appropriate a part of their trade-mark rights.
T
A
A
A
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