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THE MUSIC TRADE
agencies who for years have occupied a high position in the mer-
cantile world, and whose reports are viewed as conservative and
fairly accurate. There are, however, some other institutions which
are not viewed in the same light. It would be possible for a con-
cern without character to use confidential information to the serious
disadvantage of the firm supplying information as to its financial
resources.
One should be extremely careful in supplying such information,
else it possibly might be used as a hold-up proposition later on.
There are reliable agencies which can supply all desired informa-
tion, and piano manufacturers in common with men in other indus-
tries usually are subscribers to these important agencies. There
are few others which have won the confidence of business men, and
there are also companies formed for the purpose of obtaining inside
information which they may use for no good purposes later on.
T
H E R E is l>efore the Massachusetts legislature proposed legis-
lation against mercantile agencies which provides that an
agency by giving information which turns out to be false shall be
deemed to have done so maliciously. The minimum penalty which
the conviction carries is a term of five years in State's prison, or a
fine of five thousand dollars, or both. It says among other things,
however, that one who willfully and maliciously publishes orally
any false statements concerning the character, financial, or social
standing of any person, corporation, or business concern, of any
description, shall l>e guilty of a crime punishable by imprisonment
in States prison, or by a fine not exceeding five thousand dollars, or
both.
The act is sweeping, and if placed upon the statutes, will make
ii. impossible for any blackmailing corporation to do business under
the guise of a mercantile agency; but we should say to our sub-
scriber that it would not be wise to impart to any mercantile agency
information of a private character, and which affected his financial
standing, without first convincing himself of the reliability and
character of the men who solicited the information. He should not
be deceived in the slightest by any apparent desire on the part of
these men to serve his interests. He should first satisfy himself as
to their honesty of purpose.
I
T is needless to say that the sympathy of the members of the
music trade industry has gone out in ample measure to the
sufferers of the San Francisco catastrophe. The reports which we
have printed for the past two weeks show that this trade has con-
tributed liberally towards the alleviation of the suffering of the
stricken ones in far away California.
However, many generous acts have been performed which
never have been or never will be known to the world. Leading
firms have placed large sums of money to the credit of their Cali-
fornia representatives, and they propose to stand by them straight
through the rehabilitating process, cost what it may.
T
HAT is the kind of spirit which tells, and it is the kind of gen-
erosity which should cause business friendship to endure as
long as life lasts. All of the great music trade houses have been big
sufferers in San Francisco, and it is gratifying indeed to learn that
the precious papers contained in their safes and vaults have been
saved. The destruction of their buildings and the great stocks of
pianos in them have caused an enormous loss, and characteristic is
the energy with which the work of recovering is being taken up,
and only a short time will .have elapsed before a new city will arise
on the ruins of the old, built on better lines, and prepared to restore
and extend the prosperity so suddenly and so tragically interrupted.
I
N the carrying out of all these plans, San Francisco will have
the sympathy and co-operation of the trade, and of the whole
country. The noble response from all quarters in contributions of
money, and in the rendering of assistance through every possible
channel, is a most impressive illustration of the genuineness and
depth of sympathy evoked by the great calamity.
There have been catastrophes which have involved far heavier
loss of life, but it is altogether probable that the destruction of
property in the same space of time has never before been exceeded.
It is estimated that the property loss of San Francisco will run up-
wards of $300,000,000. These figures far exceed the loss in the
great Chicago fire of '71, which had, until the fateful week in San
Francisco, the melancholy distinction of having been the greatest
REVitlW
fire since the time when old Nero applied the torch to Rome and
played the violin while the city was being reduced to ashes.
N
OW that the citizens of San Francisco are assured of adequate
care, the question presents itself as to the effect of this great
calamity on the business interests of the country. Values in stocks
have been depressed as is usual after any catastrophe involving the
destruction of an enormous amount of property, which will have to
be replaced.
It is always assumed that our accumulations of capital which
little more than suffice for the regular requirements of trade must
be heavily drawn upon to meet the extraordinary emergency causing
the rapid conversion of securities into immediately available funds.
Insurance companies must In.' prepared to pay losses as soon as ad-
justers can pass upon claims. Merchants and manufacturers in the
stricken city may not only be unable to meet their obligations to
creditors who are probably scattered all over the country, but they
must ask for financial assistance to resume operations. Meanwhile
outside creditors are not paid, and their financial resources may be
seriously impaired.
A
LL of this means some derangement of the orderly course of
finances, and is necessarily taken into account by those who
have anything to do with transactions of securities. The Chicago
fire in 1871 was for this reason followed by a sharp fall in stocks.
Jt was soon seen, however, that great as was that calamity, it had
not inflicted serious damage to financial interests generally, and it
was further seen that important branches of business were greatly
stimulated by the heavy demand coming from those who were re-
building Chicago and re-establishing commercial and manufactur-
ing facilities. Within a few weeks the Chicago fire had ceased to
be a disturbing influence in the security markets, and the following
year, in spite of the fact that what was then described as an appalling
destruction of property had occurred, the country experienced one
of the greatest booms ever known.
As over thirty-four years have passed since the Chicago fire the
country has increased immeasurably in all forms of wealth, and it
may be safely assumed that the San Francisco calamity, gigantic
as it may be, can be much more easily borne. In this instance, as
was the case with the Chicago fire, the foreign insurance companies
carried heavy risks, so that a part of the burden of indemnifying
property owners will fall on the world at large, and will not be
taken from this country as some imagined.
T
HE rehabilitation of the city, however, no matter what ma-
terials may be used, will necessarily for a long time greatly
stimulate many branches of trade. So while there may be, before
we are completely readjusted, frequent pinches in the local money
markets, yet it is not believed by the most eminent financiers in this
country that there will be a serious disorganization of any financial
fabric on account of the destruction of such an enormous amount
of property.
The Pacific Coast disaster must result in large demands on the
production of the country for materials and goods, to take the place
of those destroyed and needed for the rebuilding of the city. In this
way there will be a new and unexpected call for a very considerable
quantity of iron and metal products which will give mills and fac-
tories, already fully occupied, many orders to which under the
peculiar circumstances they will doubtless give the best and most
prompt attention.
There is an enormous demand for skilled labor on the coast,
and our special reports from Portland and other points in the north-
west indicate that big wages are offered to skilled lalx)r all along
the coast to go to San Francisco.
As far as the music trade interests are concerned San Fran-
cisco will have to be rebuilt, at least partially, before there can be
a local piano trade; but, as announced in earlier issues of The Re-
view, the piano men will concentrate their efforts on trade at far
away points, and as a result, piano trade all along the coast will be
prosecuted with increased vigor. A number have already estab-
lished temporary quarters in Oakland and at near-by points, and it
is believed by many that trade outside of the district directly affected
by the earthquake will be excellent in all lines. Piano merchants
who placed orders before the earthquake have wired that shipments
of musical merchandise now be made.