Music Trade Review

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THE MUSIC TRADE REVIEW
11
tificates of indebtedness at their face value.
With the liquidation of the company's indebtedness,
exclusive of its bonds, in the manner indicated, and
the creation of a fund for working capital, which would
be provided by the stockholders' contributions, the com-
pany's finances would be upon a firm basis, and by
Expected Improvement in Business for March Has Not Materialized—This Is Ascribed, However, reducing its stock of finished oianos and materials, and
utilizing the capital thus liberated, it would be enabled
to the Unusually Bad Weather Which We Have Had—Big Pipe Organ Orders for Estey
to greatly increase its volume of business without addi-
tional capital.
Co.—Schomacker Appraisers Conclude Work—Circular Issued to Creditors and Stockholders
If this plan meets with your approval, and your as-
sistance is given, I have already been assured by credi-
Looking to a Reorganization—Latest Development of Chas. H. Fischer Affairs Is Revealed
tors representing more than one-half of the indebtedness
in the Advertising Which Appeared in Last Sunday's Papers—"200 Pianos" Thrown on thus to be liquidated, that they will accept the certifi-
cates of indebtedness in payment, and bv stockholders
the Market Which Was Followed by a Personal Statement from John V. Steger.
representing nearly one-third of the company's shares,
that they will make the contribution required. It is
appropriate at this point to mention that I have re-
to
say
that,
in
so
far
as
the
matters
in
dispute
related
(Special to The Review.)
ceived assurances that certain patents, said to be of
to the personal management of the company's affairs
Philadelphia, Pa., March 12, 1907.
by Colonel Henry W. Gray, who was for so many years .great value, and essential in the manufacture of the
its president, they have by his death ceased to be a company's products, and which have been used by the
The piano business thus far in March has not
company, but were issued to Colonel Henry W. Gray,
factor in the problem; 1 and, in so far as they related
and have always remained in Ills name, but as to the
to the methods to be pursued in the conduct of the
showed the improvement that was expected.
company's business, they are completely lost in the ownership of which there has been some dispute, will
January and February gave encouragement that
be assigned to the company as a free gift, if the plan
far more
important question which now presents itself,
outlined herein shall become operative.
to 1 whether there is to be any company or any
every month was going to show an equal in- as
business to manage at all.
You should also know that I have submitted the plan
crease, but this has not been maintained in
Tt is almost invariably the rule that a business en-
to Mr. Justus Gray, who has for many years been an
terprise
which
comes
into
the
control
of
the
Bankruptcy
officer
of the company, and who perhaps possesses a
March. The reason for this may be assigned to
Court Is found to be in an exhausted state not only
more intimate knowledge of its affairs than any other
the very bad weather we have been having. financially, but in all other respects as well. In this person, and I am encouraged by his assurance that it
instance, however, we have an exception to the rule,
will be possible, if the plan becomes effective, for the
However, the dealers look most hopefully to the and while it is true that the company cannot at this
company to retain his services.
meet its financial obligations, It is true, never-
I have the further assurance that The Colonial Trust
spring to bring them good business. They are time
theless, that its stock of finished product is unneces-
Co., the receiver in bankruptcy appointed by the Dis-
sarily large, and the quantity of new and partially
trict Court of the United States, will afford every
laying their plans accordingly, and every house
worked materials, I am informed by those conversant
facility for the prompt restoration to the company of
is well stocked with pianos equal to any busi-
with the piano business, is greatly in excess of the
its property, if your response to this communication
needs
of
such
a
business
conducted
in
the
light
of
shall be such as to make possible the fulfillment of the
ness that may come their way.
modem business methods.
legal requirements incident to a termination of the
bankruptcy proceedings.
The Board of Directors of the company at a meeting
The Estey Co. have recently received orders
held during the month of January authorized the em-
There is no news given out' by either Charles
to build pipe organs for the following churches:
ployment, of a certified public accountant to make an
examination of the company's accounts, and Mr. J. E. H. Fischer or J. V. Steger, regarding the
The Evangelical Lutheran Church of the Atone-
Sterrett was employed to do the work. Under date of
February 15, 1907, Mr. Sterrett presented an ex- troubles of the Charles H. Fischer Co., more
ment, East Montgomery avenue, Philadelphia;
haustive report, to which access may doubtless be
than the following advertisement, boldly dis-
the Epiphany Episcopal Mission, Sherwood, Phila-
freely had by any creditor or stockholder of the com-
pany. Mr. Sterrett's report valued the assets of the
played, and reading matter that appeared in all
delphia, and are a t present erecting organs in
company on January 31, 1907, at $189,602.22, which
the Philadelphia papers last Sunday:
figure included only the value of its material assets,
the St. James P. E. Church, Leesburg, Va., which
no valuation being placed upon good will—or other in-
"An awful sacrifice of pianos for spot cash.
is to be ready for Easter services; the St. Paul's
tangible property. Many of the items in this report are
based upon appraisements made at the time, as an Entire stock of the Charles H. Fischer Co. (286
Evangelical Lutheran Church, at Allegheny, Pa.,
examination of it will disclose. The principal items
pianos) to be closed out immediately. Now in
which make up this total are as follows: Pianos,
and the M. E. Church at Frostburg, Md.
finished and in course of construction. $35,102.57 : ma-
the trustee's hands.
The appraisers of the Schomacker Piano Co.
terials. $31,218, and real estate, machinery and equip-
ment, $55,154. These figures may be regarded as the
"More than two hundred magnificent new up-
have concluded their work as far as the factory
fair value of the property to the company as a going
right
pianos will be thrown on the market to-
concern,
and
the
appraisement
of
the
real
estate
may
is concerned, the pianos finished and held there
he looked upon as conservative, when it is considered
morrow morning for cash—we need the money.
and the pianos in course of construction, as well
that two pieces thereof appraised at $45,700 are
assessed for purposes of taxation at $40,000.
Every piano now in these wareroOms (286 in
as the factory equipment. There are sixty-odd
Mr. Sterrett reports the liabilities of the company
all) mainly the celebrated 'Steger' & Sons,'
pianos at the factory, and as many more at the on the same date, exclusive of possible liability as
'Reed & Sons' and 'Wissner,' must be sold with-
indorser, and an undetermined liability in relation to
store. William Maul Measey, representing the
old pianos received from prospective purchasers for
in the next ten days for spot cash in order to
which credit is to be allowed, at $95,902.86.
of which
Gray interests, has issued a statement, or,
1
$50,000 represents the first mortgage 6 per cent, bonds
* rather, an appeal to the creditors and stockhold- of the company, secured by a mortgage of its property. accomplish our object, and there'll be no mincing
of words about it, either. They have simply got
These figures alone, the net 1 result of which will not.
ers as a reorganization plan. It is said that the
so far as I have been able to ascertain, be greatly
to be sold, and we are prepared to lose any rea-
altered by the transactions of the company subsequent
response to this circular is very satisfactory,
to January 31, 1907. should convince you that the
sonable amount of money that may be necessary
and that many of the creditors have subscribed. property ought not to be abandoned to the destruction
in order to turn this entire stock into cash imme-
Is almost certain to follow from a sale in bank-
The opposing forces are hoping that the organiza- that
ruptcy, for the property is of such a nature that a
diately.
very large portion of it," notably the materials and the
tion under this plan is impossible, and that the
unfinished pianos, could not. at such a sale, be expected
"This is a square deal—a bona fide closing-out
assets of the company will be sold at forced sale. to realize more than a small fractional part of their
real value to the company, and the real estate, though
sale of every piano in these warerooms at a fear-
The circular to the creditors and stockholders
so. perfectly adapted to the company's needs, is, never-
ful sacrifice, and at prices far below anything
theless, of a kind for which a market must be created,
is as follows:
so that an enforced sale must almost of necessity re-
ever known on pianos anywhere near the class
Gentlemen :—I have been requested by certain large
sult in a great sacrifice. I do not hesitate, therefore,
creditors and stockholders of The Schomacker Piano-
to sav that it is my firm belief that the result of a of these; but it must not be understood from
forte Manufacturing Co. to formulate a plan for the sale in bankruptcy will be so disastrous
that the stock-
this that the firm is busted and going out of
reorganization of the company, and with that object
holders' valuable property will be 1 wholly lost, and that
in view I have made as careful an investigation into
the creditors will also lose a very considerable portion
business, for it is not, and that is one of the
its affairs as the short space of time available has per
of that which they are entitled to receive.
mitted.
primary objects of this sale, to keep tnem from
The
figures
that
have
been
given,
however,
should
The company's future depends entirely upon you, its not be taken alone, for there are many other considev-
busting and going out of business, if we can get
creditors and stockholders, for without your sympa-
ations which deserve attention. It is no doubt trup
thetic and hearty co-operation nothing can be accom-
the money—and we are going out to get it. This
that the business of the compajiv has not been profit-
plished in the direction of its restoration. In order
ably conducted for a considerable period of time, but
that you may, therefore, determine intelligently what
sale, as above, begins at 8.30 to-morrow morning
that fact is not surprising when It is known flint, not-
this future is to be, it is necessary that you* should
withstanding the eomnany's nlant is capable of turn-
at the Charles H. Fischer's Co.'s warerooms,
be conversant with the condition of the company as
ing
out
upward
of
3.000
pianos
per
annum,
the
number
it exists to-day, and to that end I shall endeavor to
1710 Chestnut street, and continues day and
of pianos sold dnriner the year 1906 was not great'v
state to you the facts as I see them as briefly as
in excess of one-tenth of that •number. If it is de-
possible.
night till closed out. For further particulars as
sired
to
seek
further
for
an
additional
renson
for
the
It may not be inappropriate first to mention that
absence of n profit in the company's recent operations,
to prices and our motives for making this sacri-
the present situation has not resulted from the press-
it may be found in the ereat expense; incident to the
ing demands of creditors, for there have been no suits
fice, see full column reader under head, 'We
maintenance
of its Chestnut street establishment, in
against the company, nor. so far as I have been able
which the item of rent alone is $7 ?00 per annum, and
Want Our Money Back,' on page 6 of this sec-
to ascertain, any urgent demands upon it for the' pay- to
which
establishment
may
be
credited
materially
less
ment of its obligations, but has been entirely the result
than
one-half-
of
the
company's
sales
during
the
tion."
of a controversy between certain stockholders of the year 1906.
company. It cannot be profitable to enter into the
Mr. Steger's statement on page 6 of the same
Is it reasonable to pronounce at once, in the light of
merits of this controversy now, as it is no part of
the 1 facts T have already given you. that these Ills
my duty to attempt to point out to you wherein either
paper was a plea to those having cash ready to
fire chronic find incurable, and tlint it is not possible
party may have been right or wrong. It is sufficient
that the company, with its adequately eouinped plant,
buy pianos—that an extraordinary opportunity
with a product, the sterling worth of which has through
was here presented. In this connection the arti-
a long period of years become w thoroughly estab-
lished, mid. with skilful, aggressive, modern business
cle
reads further:
management, which T am confident will be available,
may not. if restored to the position of credit which it
"But before stating the astounding low figures
so lonsr held, enter upon a new life and achieve n per-
I shall herein quote for cash, and which I know
manent success? This Is one of the questions for you
THE BEST IN THE WORLD
to determine
to be many, many dollars below anything ever be-
Simple, Durable and Absolutely Noiseless
We are naturn'lv presented at this point with the
fore offered the public on high-grade pianos by
problem of how the present situation may be met and
NOT AFFECTED BY CLIMATE
the financial difficulties it involves be overcome. 1
any manufacturer in this country, in justifica-
am not sure that T have solver! th» problem, but I will
sueirest a plan for vour consideration, and, if you will
tion of which, as well as our motive for so doing,
point out to me wherein if may be improved. T assure
I wish first to make the following frank state-
yon that T sha.ll be grateful to von for your assistance.
T'viefly stated, the plan is as follows :
ment:
That the company make PP issue ^f certificates of
indebtedness, of convenient denominations, which cer-
"Now, listen! It has been reported, and even
tificates shall b^ve attached thereto coupons payable
in the daily papers of late, that the Charles H.
at intervals of s'x 1 months, each coupon to be for such
amount as may be equal to the sum of 5 per cent, of
Fischer Co. had failed, were busted; but that is
the principal of the certificate and interest at f> per-
cent per anni'n-i O TI the unpaid part of the principal
not the case. They are not exactly busted,
Annoyance and Expense
which the certificate phsll represent : that these cer-
neither are they bankrupt nor Insolvent; but
Saved Dealer and Purchaser
tificates shall be redeemable, nrior to maturity, at the
option of tlie company 1 at the date of the maturity
without the management, aid and assistance we
of anv connon. upon the navrnent of the coupon then
Manufactured and sold only by
flue nnd the unpaid part of the pHncinal : and that the
propose to give them at this time, it might be
wholo amount of unpaid principal represented hv +iie
even worse than that.
<-oft|fic->tf> "'"ill become immediately due and collectible
noon the fnii»re to pnv any coupon at-maturity. That
"The Charles H. Fischer Co., like occasional
the stockholders of the company' pav into the com-
pany's treasury the sum of $1 for each share of stocv
ALBERT F. NORRIS
CLIFTON B. NORRIS
other
firms before them without capital, have
whfen they mav own. and receive therefor the said
certificates of indebtedness enuivalent in amount to
attempted to do an enormous retail piano busi-
their contributions. That the creditors of the com-
ness in high-grade pianos on the 'little money
pany accept, in payment of their claims, the said cer-
The Standard of America
N
The
ORRISDATENT
T E Q A L ACTION
Norris Noiseless Pedal Action Go.
3 Appleton Street,
Boston, Mass.