Music Trade Review

Issue: 1907 Vol. 44 N. 5

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
KMFW
EDWARD LYMAN BILL, - Editor and Proprietor
J. B. SPHXANE, Managing Editor
Executive and Reportorlal Staff:
UHJO. B. K.BLLKB.
W. N. TYLEB.
F. H. THOMPSON.
EMILIB FRANCES BACKE.
L. EJ. ROWERS. B. BBITTAIN WILSON, WIT. B. WHITB. L. J. CHAMBKKLIN. A. J. NICKLIN.
BOSTON OFFICE:
CHICAGO OFFICE:
B>NBST L. WAITT, 278A Tremont St.
E. P. VAN HARLINGBN, 185-197 Wabasb Ave
TELEPHONES : Central 414 ; Automatic 8643
MINNEAPOLIS and ST. PAUL:
ST. LOUIS:
PHILADELPHIA:
R. W. KAUFFMAN.
A. W. SHAW.
CHAS. N. VAN BTJRKN.
SAN FRANCISCO: S. II. GRAY, 2407 Sacramento St.
CINCINNATI. O.: NINA PUOH-SMITH.
BALTIMORE, MD.: PAUL T. LOCKWOOD.
LONDON, ENGLAND:
69 Baslnghall St., E. C.
W. Lionel Sturdy, Manager.
Published Every Saturday at 1 Madison Avenue, New York.
Entered at the New York Post Office as Second Class Matter.
SUBSCRIPTION,(Including postage), United States, Mexico, and Canada, (2.00 per
ypar; 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, $60.00; opposite
reading matter. $75.00.
REMITTANCES, In other than currency form, should be made payable to Edward
l.yraan Bill.
Directory ol Piano The directory of piano manufacturing flrme and corporation
found on another page will b« of great value, as a reference
Manufacturer* for dealers and others.
Exposition Honors Won by The Review
trtand Prix
Paris Exposition, 1900 Silver MedoI.Charleston Exposition, 1902
Diploma.Pan-American Exposition, 1901 Gold Medal..St. Louis Exposition, 1804
gold Medal.Lewis-Clark Exposition. 1905
LONG DISTANCE TELEPHONE-NUMBER 1745 GRAMERCY
Cable address: "Elblll N e w York."
NEW
YORK, FEBRUARY 2, 1907
EDITORIAL
W
E have received a number of communications from readers
of The Review anent the table which appeared in last
week's publication, showing the increased cost to manufacture pianos
of what is colloquially termed the commercial and high-grade lines.
One dealer writes: "I have read with much interest your article,
and it seems to me that the reasons which you put forth, showing
the necessity of an advance, are absolutely beyond the power of
argument to disprove. I have no doubt that you have gone into
this matter fairly and have given us an accurate statement. It is the
first that I have seen, and I feel that the manufacturers under these
conditions are doing perfectly right in asking for an increase on
their manufactured products, and it is simply up to the dealer to
get more at his end of the line."
Quite right, and if the truth were told it would be found that
some of the concerns who did a large business last year made very
little profit, nothing to what they should have made when consider-
ing the total volume in dollars which their business amounted to.
I
T does not pay for the business man, or the manufacturer, or the
merchant to fool himself with the idea that because he is doing
a large business he is making money. In such times as the present it
pays to give the closest scrutiny to every department of the business.
The rising tide of cost has swept far and away beyond what many
had counted upon, and the end is not yet.
It is pretty difficult to adjust all matters satisfactory to this
rising tide. A good many metal manufacturers are unwilling to
take orders to-day for future deliveries at the present market prices,
and some are insisting upon inserting the clause: "Subject to ruling
market prices in all future orders."
All these things have to be carefully considered in fixing prices
on manufactured products, and it is difficult for a piano manufac-
turer to adjust his net price when all materials are constantly going
up in cost.
As shown by the table in The Review last week, the actual cost
to manufacture instruments has advanced from $io to $25 per piano.
That is a conservative estimate, and one which is the result of care-
ful figuring and an analysis of the increased cost of all things which
enter into piano construction.
A
READER of The Review writes: "I have read your publica-
tion for over a quarter of a century, and I feel that I can't
keep house without The Review as a regular visitor. 1 like your
way of departmentizing. because for the busy man it makes it easy
to look up what is desirable, and my department managers find much
in your special departments to interest them. The small goods
people, the talking machine men and the musical publishers are not
all interested in what you say about pianos, and they like their own
special departments."
The trade paper is supposed to be the highest result of spe-
cialization in the periodical press, and publishers feel that the more
time they can save a reader who is interested in the special depart-
ment the stronger their journals will appeal to that trade as a whole.
Take in the case of The Review: It has a larger circulation
than any purely piano trade paper can hope to have, because it ap-
peals to a number of different departments, and some of our sub-
scribers never handle more than one or two of the special branches
which are treated of weekly in these columns. Experience has
shown that specialization in journalism pays. An argument in our
case would seem unnecessary, as a glance through the advertising
pages of The Review will furnish the evidence, if it were desired,
that people in all branches of the music trade are interested in this
publication.
I
T is surprising sometimes, when we consider how far-reaching
are the effect of editorial utterances in moulding trade opinion.
People read certain doctrines, and unconsciously absorb them. They
cannot tell in a little while just from what source they may have
acquired the ideas which have taken root with them, but they have
come to believe they are right, and in many cases the original decla-
ration of principles may be traced to some trade publication.
To illustrate: Years ago The Review advocated a National
Piano Manufacturers' Association. The editor of this paper was
laughed at by some of the other editors, who called the plan an
advertising scheme, but we called the first national trade meeting
ever held in this country in 1888, when a national association was
formed. This was the germ from which all of the other associa-
tions have sprung, and yet to-day no one knows or cares who started
the original idea. We suggested later on the formation of the
Dealers' National Association. No other paper had even offered
this as a suggestion. We urged as a fitting time to start this move
when the National Piano Manufacturers 1 Association was convened
in New York at the Hoffman House. We were even invited by
several of the dealers to call the meeting. This we positively refused
to do, believing that the proper functions of a trade paper did not
include active participation in association work.
O
NE price was next a strong point with us, and we began a
national campaign in favor of it, by offering cash prizes for
the best articles. It aroused national sentiment, and to-day no one
stops to think where these ideas originated—in fact, they care not.
We simply refer to these matters, not with any idea of claim-
ing credit, because any journalistic institution which seeks credit for
the performance of good moves is usually disappointed. The real
satisfaction comes in the knowledge of knowing that the advice
was right.
D
OES trade paper advertising pay, is an old question which is
being externally exploited in periodicals devoted to the devel-
opment of the advertising trade. Yet many of the purely advertis-
ing journals overlook some of the most important functions of a
trade, or technical publication. It is not alone an advertising me-
dium, but it is a tremendous force in the development of an industry.
The trade paper sifts out its readers, and retains those who consume
or buy certain commodities in their business or other related lines.
Therefore an advertiser has a preferred circulation. In other words,
he is not paying for a circulation among readers who have not the
slightest interest in that which he advertises. Trade papers when
properly conducted are helpful to every industry in which they are
published. They not only disseminate valuable information, but
they are constantly making suggestions which are of obvious value
to those whose interests lie in a particular industry.
advertising strength of a trade paper is so wrapped up in
its news features, and is in many cases so indirect, that it is
difficult for the advertiser to trace direct returns. But experience
of years has shown that trade paper advertising of desirable pro-
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
ducts, carefully planned, carefully placed, establishes a name, creates
a demand and proves a sure foundation for the upbuilding of any
business.
in the enormous outlay of these corporations who secure money in
the shape of a direct tax on the people for the maintenance and
operation of the roads.
P
R
TANO manufacturers are planning for an increased output dur-
ing the present year, and it is said that new capital will be
introduced in the trade attracted by the allurements of good profits
in piano making. As a matter of fact, large profits are not in evi-
dence, and small concerns in this trade will find it indeed difficult
to make substantial advance against the tremendous forces of large
corporations who control great wealth. The small men in piano
making, as in other industries, will have harder work all of the time
to hold their positions. A large number of new manufacturing
enterprises are now in process of formation all over the United
States. These never would have been thought of during any ordi-
nary period of good business conditions, but the remarkable success
that is attending nearly every line of industry must naturally attract
men to them, that they will go and do likewise and reap a rich har-
vest in money.
T
HIS is a very excellent and natural ambition, and doubtless one
that in many instances will be carried to at least partial fulfill-
ment. • But many others will fail, because they are basing their esti-
mates of success upon present conditions. Some of them are
neglecting the lessons which a careful scrutiny of the past will reveal,
and without looking into the future to the time when manufacturers
will have much less to do, and when the margins of profit will be
much smaller. And every piano manufacturer knows how thin the
margins of profit have become.
A well-known piano man told The Review last week that his
business had amounted to—well, something less than a million dol-
lars, and on this immense business he had only cleared a few thou-
sand dollars net profit.
T
HERE is a belief on the outside that there are large profits in
piano making as'well as in piano selling. A careful and in-
telligent examination of conditions as they exist in any line of manu-
facture should precede the investment of money in a new industry,
and if this rule were carefullv followed there would be not a few
who would hesitate to make up their minds to enter the competitive
field. Admitting that there is room for progressive manufacturers
in almost any field that can be named, provided that these new' in-
dustries could spring into fully equipped and perfectly manned
existence, even within a twelvemonth, there is, however, the future
to consider.
W
H E N the time comes for the demand to fall off, prices will
go down, and prices will be smaller on a lessened volume
of business; then the newcomer in the field will be likely to feel the
business depression more acutely than his competitors wiio have been
established for years. New concerns will hurt the old, because they
will disturb conditions; in order to secure trade they will probably
cut prices.
We have seen this too frequently in the piano business, and
only last week a large sale was made of pianos to a well-known
dealer, and in the sales contest three or four of the manufacturers
of commercial pianos were fighting for the trade plum. It was
positively stated that the man who carried off the honors secured the
business on a net price of $2.50 per piano.
T
H E R E are solid nuggets of wisdom in the speech delivered by
Colonel Conway at the music trade banquet in Chicago last
week, in which he proves by logical argument the advantage of
natural waterways to commerce and to the public. In his line of
argument Colonel Conway emphasized how vitally the people are
interested in the proper management of our railroad corporations,
and that the cry of the hour is more railways, better equipped and
better managed, in order that the public may be more efficiently
served.
The readers of The Review will .agree with Mr. Conway in his
statement, and never before has public sentiment been so thoroughly
aroused regarding the railroad question as at the present time. The
speaker went on to show that every dollar which the railroads secure
for all of their expenses, from the salaries of the highest officials
down to freight handlers, is paid direct by the people into their
treasury, henge it is but right that the people should, fee} interested
AILROADS, however, have failed to develop with tlie times,
and business interests have been greatly injured by reason of
the inadequate facilities for handling freight. Mr. Conway made
some interesting comparisons regarding the cost of conveying heavy
freight by rail and by sea in his summing up in favor of a deep
waterway from the Lakes to the Gulf, which he believes is certain
to be in operation within the next five years. There is no doubt
that the Chicago drainage canal was but the inceptive move in a
great internal development of the country's commerce, which ere
long will result in making a way for the transportation of products
of the interior by water-to the Gulf, and thence to European ports.
Whether it will come in five years or not remains to be seen. We
are rather inclined to think, however, that with the many things
which the Government has on hand at the present time, the time
limit set by Mr. Conway will be somewhat exceeded. But it will
come, and it will be of vast benefit to the entire country. It will
help not only the West, but the East as well, and be the greatest
possible boon to New Orleans, which it will help to make one of
the greatest seaport cities in the world. The heavier products of
the country will move along the easiest lines of resistance to the
sea, and not across the Allegheiiies, which necessitates a long and
expensive haul overland.
W
ORKMEN and the general public have little conception of
what it means to build up a large and successfully con-
ducted business. In this connection we may say that almost in the
center of the Essen works stand the original Krupp factory and
family house, both maintained intact in accordance with the direc-
tions of Alfred Krupp, the founder. There is an inscription on the
house, signed with the founder's name, part of which reads:
"Fifty years ago this cottage was the home of my parents. May
none of our workmen have to go through the struggle which the
building up of these works has cost us. The success which now so
splendidly has rewarded our faith, our anxiety and our effort was
doubtful during twenty-five long years. Let this example serve as
an encouragement to others in difficulties. May it increase respect
for the many small homes and the great sorrows which often dwell
in them."
This remarkable statement is one that will apply to many insti-
tutions—in fact, to most large institutions—because the outsider
never knows of the tremendous struggles which are required to build
commercial enterprises from the ground up.
H
ERE is what "Elbertus" Hubbard has to say regarding the law
of wages: "Every employe pays for superintendence and
inspection. Some pay more and some less. That is to say, a dollar-
a-day man would receive two dollars a day were it not for the fact
that some one has to think for him, look after him and supply the
will that holds him to his task. The result is that he contributes to
the support of those who superintendent him. Make no mistake
about this: incompetence and disinclination require supervision, and
they pay for it and no one else does. The less you require looking
after, the more able you arc to stand alone and complete your tasks,
the greater your reward. Then, if you cannot only do your own
work, but direct intelligently and effectively the efforts of others,
your reward is in exact ratio, and the more people you direct and
the higher intelligence you can rightly lend, the more valuable is
your life.
"The Law of Wages is as sure and exact in its working as the
Law of the Standard of Life. You can go to the very top and take
Edison, for instance, who sets a vast army at work and wins not
only deathless fame, but a fortune, great beyond the dreams of
avarice. And going down the scale, you can find men who will not
only work of themselves and no one can make them work, and so
their lives are worth nothing, and they are a tax and a burden on
the community. Do your work so well that it will require no super-
vision, and by doing your own thinking you will save the expense of
hiring some one to think for you."
And speaking of the wage question brings to mind that George
P. Bent, at the Music Trade Banquet in Chicago last week, made
one of the most interesting and remarkable speeches on the labor
question, that has been heard in many a day.

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