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THE MUSIC TRADE REVIEW
6
EDWARD LTTMAN DILL,
Editor and Proprietor
J. B. SPILLANE. Managing Eait«r.
EXECVTIVE AND REPORTORIAL STAFF:
GEO. B. KKLLER,
W. N. TYLER,
EMILIE FRANCIS BAUER,
WM. B. WHITE,
W. L. WILLIAMS,
A.J. NICKLIN,
GEO. W. QUERIPEL.
BOSTON OFFICE:
CHICAdO OFFICE
ERNEST L. WAITT, 255 Washington St.
E. P. VAN HAULINGEN, 1362 Monadnock Block.
PHILADELPHIA OFFICE:
MINNEAPOLIS AND ST. PAUL:
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R. W. KAUFFMAN.
E. C. TOREEY.
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Published Every Saturday at 1 Madison Avenue, New York.
Entered at the New York Post Office as Second Class Matter.
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vear ; all other countries, $4.00.
ADVERTISEMENTS. $2.00 per inch, single column, per insertion. On quarterly or
yearly contracts a special discount la allowed. Advertising Pages, $50.00; opposite
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REMITTANCES, in other than currency form, should be made payable to Edward
i.yman BUI.
On the first Saturday of each month The Review contains In its
THE ARTISTS' "Artists' Department all the current musical news. This is effected
without in any way trespassing on the size or service of the trade
DEPARTMENT section of the paper. It has a special circulation, and therefore
augments materially the value of The Review to advertisers.
T h e dlrec
DIRECTORY •/ PIANO
t ° r y °* P'ano manufacturing firms and corporations
" r j ™ v J 5 T . ™ IANO found on another page will be of great value, as a reference
MANUFACTURERS
f o r dealers and others.
LONG DISTANCE TELEPHONE-NVMBER 1745 GRAMERCY.
NEW YORK. SEPTEMBER 2. 19O5.
A
1MAXO manufacturer remarked some four years ago to The
Review that his highest ambition was to build three thous-
and pianos per year. "There," he said, "I shall halt, because I am
satisfied that if J go beyond that, it will be difficult to market pianos,
and get my pay for them on the short time principle on which this
business has been built."
This same manufacturer has long since passed the three thous-
and mark. In fact, he has been steadily climbing up until he has
added several figures to it, and the question naturally arises has he
found it necessary to extend his terms of credit?
Without question he has, for it is known that he gives quite as
generous time as the average manufacturer, and formerly he was
absolutely ironclad on his maximum time limit.
I
NHERE are some who believe that it is impossible for a piano
manufacturer who desires to turn his capital quickly, to
market more than four or rive thousand pianos annually on the short
time basis.
That leads up to the question, is there more money in it for
the manufacturer to hold a limited product and get his pay quickly,
or to branch out and extend his credits, of course creating more
instruments ?
That depends. It is certain the credit department of many
institutions needs overhauling. It is out of date, and does not work
with the regularity and precision which is desirable in a modern
business institution.
To help out on the credit end of the business there will arise
more trust companies which will purchase piano paper at market-
able figures, approximating its face value, with of course interest
charges and reasonable deductions.
trust or loan companies have been very active in the
-L
book trade, and in fact, one of them is said to have reached
a point where it has loaned more than a million dollars to book
publishers whose products have been sold on the instalment plan.
In this way the capital may come from outside sources to furnish
the piano merchants and manufacturers sufficient monies to extend
their business, because it must be extended. We arc too pushing
and too energetic a people to simply halt and permit piano sales to
be made only when the people come in to purchase. We will" con-
tinue to sell them in thousands of cases where the people are not
anxious to buy, but will be induced on account of arguments pre-
sented, but the money must be forthcoming from some outside
source.
Now, if these loan companies will supply all the necessary cash,
why a vexations problem will be removed and manufacturers can
sell, on short time rather than long, and the dealers can pa)' for their
instruments by simply arranging with these loan companies to carry
their paper.
W
I T H O U T such organizations, it will be more difficult as
time moves on to extend the piano business beyond cer-
tain narrow limits. It will be hard for manufacturers of moderate
means to cover large territory and meet the kind of competition
that comes from collossal organizations which can arrange to carry
their own dealers' paper without going to foreign sources.
A good many of the smaller manufacturers are to-day find-
ing it extremely difficult to meet some of the terms offered by larger
competitors. The grind will become more and more pronounced
until there is relief furnished, and it must end eventually in the
defeat of the smaller concerns. Outside capital from companies
formed for the purpose of carrying a vast amount of instalment
paper will save the day. It is worked in the book trade successfully
as well as in other lines where merchandise is sold on the instalment
plan.
F
W L L is here, and from all accounts it is going to be a season
of unprecedented business activity. There is no doubt that
the distribution of merchandise this autumn will be extremel)
large. According to the mercantile reports trade is progressing
unusually early this year, and the volume of fall business is so
heavy, that the last half of 1905 promises to establish a remarkable
record of commercial activity. Already dealers are beginning to
send in orders which indicate that their stocks are in such a de-
pleted condition that they can't meet the first demands of the fall.
Collections have shown a decided improvement recently.
Labor disputes-have reached settlement, and no serious controver-
sies are threatened, while in many sections the supply of wage
earners is inadequate. Already there are freight blockades which
are causing delay in the shipments of crops and merchandise. Truly
this trouble will become more and more accentuated as the fall ad-
vances.
I
^ H E dealers who have ordered pianos shipped early have shown
their wisdom, for as we have predicted in earlier issues there
will be a tremendous rush later, and tlie conditions will render it
impossible for the manufacturer to fill his orders with anything
approaching rapidity.
The reports received by Dun from large manufacturing
centers show^s that with scarce an exception plants in all lines are
being worked close to full capacity, with little idle machinery ex-
cept where alterations or improvement are in progress, and contracts
on hand far exceed those held at this date in 1904.
t
^ QUALLY gratifying is the confidence expressed in the future
-v which is a prominent feature of most of all these industrial
reports. The conditions are further improved by crop prospects
which help to increase the good feeling.
The question naturally comes up with business of all kinds
rushed to its fullest capacity, will prices remain stationary, or will
the}' advance?
There are a number of people who incline to the belief that
pianos which are sold after October 1st, at new contract rates will
be marked up in price. Surely everything points to the most active
fall that this industry has ever seen, and there is a tendency to ad-
vance the price of raw materials, which, of course, must affect the
piano business as well as all others.
Our advice is to order now.
A
MONG the young men who are fond of making sarcastic refer-
ences to Fate because they have not been more successful,
this expression is very common: "I'm earning all the money I'm
getting. I don't intend to do any more work than I'm paid for."
This rule a great many men follow very carefully. They esti-
mate what they think they ought to do to earn their salaries, and
they feel that the)^ are absolutely just to their employers because