Music Trade Review

Issue: 1907 Vol. 45 N. 16

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
flUJIC TIRADE
V O L . X L V . N o . 1 6 . Published Every Saturday by Edward Lyman BUI at I Madison Avc, New York, October J9,1907
COURT'S DECISION AFFECTS PIANO INSTALMENT SALES.
The Court of Appeals Has Just Handed Down Its Ruling in the Case of Horace Waters & Co.
Against the Hotel Gerard—Declares in Favor of the Hotel Keeper Who Kept Guest's Piano
for Unpaid Bill Despite Sellers' Title to Instrument—Of Vital Interest to All Selling on
Instalments—Attorney Sanborn's Views on the Subject—Will be Taken to Supreme Court
at Washington on Constitutional Grounds—One of the Most Important Rulings in Years.
One of the most important decisions handed
down by the Court of Appeals affecting the in-
terests of the piano dealer in many years is that
just announced in the case of Horace Waters &
Co., piano manufacturers, against Caroline B.
Gerard, in which it is held that the defendant,
proprietor of a hotel known as the Gerard, in
West Forty-fourth street, Manhattan, has the
right to retain and sell for an unpaid board bill
a piano brought to her house by Adelaide V.
Carlisle, a guest, and which piano was owned
by Horace Waters & Co., but one or two small
instalments of $10 each having been paid upon
it by the purchaser.
The decision confirms an opinion by the Ap-
pellate Division, rendered in June, 1905, in which
it was held that the defendant was entitled at
common law to a lien upon the baggage and other
property of the guest brought by her into the
hotel, and that, irrespective of the statute, the
defendant was entitled to detain any property
brought into her hotel by a guest, as security
for the payment of an amount due by the guest
for lodging and supplies furnished.
The Appellate Division held that this is not in-
consistent with' any provision of the constitu-
tion, which prevents one being deprived of his
property without due process of law; for there
is nothing that requires anyone to deliver to a
guest in a hotel any property for the use of the
guest, and anyone furnishing such guest with
property for his use in the hotel voluntarily sub-
mits that property to a lien in favor of the inn-
keeper for any amount for which the guest is in-
debted to the latter.
All of the above common law practice, the
court held, is aside from the authority granted
under the express provision of section 71 of
the lien law of 1897, as amended by the laws of
1899, chapter 380, including apartment hotels.
According to Frederick H. Sanborn, who rep-
resents the plaintiff company, the decision is the
first pro or con declaring the constitutionality of
the innkeeper's lien on property belonging to
third persons, and is far reaching. In fact the
piano dealer will be at the mercy of every un-
scrupulous person until the matter is finally
passed upon by the United States Supreme Court.
The plaintiffs contend that the lien law which
gives a lien to hotel keepers on property to which
the piano dealers have reserved title, violates
section 1 of the fourteenth amendment of the
Federal constitution, which reads: "Nor shall
any State deprive any person of life, liberty, or
property wthout due process of law."
It is the expressed determination of the piano
dealers, department and furniture stores, to car-
ry the case up to the United States Supreme
Court, on the specific ground that it violates sec-
tion 1, article 14, of the constitution of the
United States, as previously noted.
To quote Attorney Sanborn, who argued the
case exhaustively for the plaintiff company, the
value of a favorable decision in the United States
Supreme Court will be a one-hundred-fold more
important than if the decision had been favor-
able in the Court of Appeals; for instance, a de-
cision by the Court of Appeals upholding the
fourteenth amendment of the Federal constitu-
tion would only be binding in New York State,
while a decision on the issue in the Federal
Supreme Court will settle the law throughout
the United States, and is binding in every State
and Federal court wherever set up. It is thus ap-
parent if the United States Supreme Court holds
that the lien law in question violates the four-
teenth amendment of the Federal constitution it
will reverse the judgment of the Court of Ap-
peals and direct a judgment for the plaintiff.
This case has excited the deepest interest on
the part of the Hotel Landlord's Union through-
out the United States, and on the part of the big
department stores and furniture instalment
houses and others selling goods on partial pay-
ment, as the decision applies not only to goods
delivered by them to hotels, but to boarding
bouses under statute amendments.
In fact a number of big stores and piano deal-
ers that have been apprised of the decision have,
during the past week, refused in a number of
instances to deliver pianos and furniture to
hotels and boarding houses where purchases
had been made on the instalment plan. It is
said that millions of dollars of this class of
trade is involved in the outcome of this suit, in
which this important question has been raised
for the first time, as to the liability of goods
sold on the instalment plan, and title to which
is still vested in the seller, to liens for board
and lodging.
STILL COMPLAIN OF BAD PACKING.
The Report of Our Consul at Peru Utters Some
Well Considered Criticisms.
In view of the many and frequent complaints
filed by foreign merchants regarding the disgrace-
ful condition in which goods are received from
the United States, the following discussion of
the packing evil made in the recent report by
Consul-General S. M. Taylor, at Callao, Peru,
should prove of decided interest. In speaking
of the packing difficulties Mr. Taylor says:
"There can be further improvement if more
attention is given to details. The most serious
obstacle in the pathway of progress is the pack-
ing. If manufacturers and merchants could se»
the havoc wrought in their shipments to South
America, owing to the careless, indifferent, or
ignorant manner in which the packing is done,
it would be an object lesson most valuable. 'It
is simply sickening,' said an American traveling
man to me, whose firm had consigned to him a
SINGL E
S
CENTS
'
$ 2 .OO°PER VEAR
shipment, one-half of which was ruined by rea-
son of indifferent packing. 'Disgusting beyond
expression,' said another American in business
here, as he viewed the wreck of two beautiful
showcases. There wasn't a whole piece of glass
left. Yet, when ordering, he had been very
explicit as to how the packing should be done.
He had had experience and knew what he was
talking about. But that firm had sent show-
cases all over the United States and had had no
trouble, and so they sent these cases out as
usual, with most disastrous results.
"This is the story all along the line. I am told
that in the parcels-post department of the post-
office here American packing is a byword and a
joke. A certain product that is largely in de-
mand and which is the same price the world
over and which is very extensively produced in
the United States is not ordered from there to
any extent because of the bad packing. Thieving
on this coast is on the increase, and the flimsy
packing is aiding and abetting the pernicious
practice."
ART FINISH BECOMING POPULAR.
Its Progress in Public Favor Slow But Sure—*
Leading Piano Men Go on Record in Ad-
vocacy of This Finish.
One of the subjects of the hour in the piano
trade that is steadily increasing in interest, is
the matter of the dull or art finish which is
rapidly gaining friends among the piano manu-
facturers. This fact is evidenced by the number
of pianos shown for fall that are finished in that
style. The main argument in favor of dull finish
seems to be its wearing qualities, and the com-
parative ease with which it may be kept in first-
class condition.
In speaking on the above subject recently,
Frank W. Teeple, of the Price & Teeple Piano
Co., Chicago, which firm have adopted the dull
finish on several of their latest styles, expressed
himself as highly in favor of that finish. As he
correctly stated while the high finish was more
difficult to work, when in the home it is found
almost impossible to keep it spick and span
for any length of time. With the dull finish,
however, an attractive and aristocratic appear-
ing instrument is assured. Mr. Teeple expressed
the wish that the American people would adopt
the dull finish even though it be contrary to
the national desire for highly finished goods.
Another strong advocate of the art finish is
Hiram C. Pressey, vice-president of the Lester
Piano Co. Mr. Pressey believes that fully 75
per cent, of the manufacturer's troubles with case
finishing would be avoided by a general adoption
of the dull method, for by that means the danger
of checking from changes of temperature would
be entirely obviated. Upon a recent trip to Cali-
fornia Mr. Pressey visited a mission in Santa
Barbara where he saw an extremely ancient in-
strument the case of which was in dull finish
and which was in a perfect state of preservation.
Upon his return to the factory the Lester Style 34
was produced along the same lines.
L. C. Penn has opened a new piano store in
Lancaster, O., with R. C. Criswell as manager.
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE: MUSIC TRADE
REVIEW
EDWARD LYMAN BILL - Editor and Proprietor
J. B. SPILLANE, Managing Editor
Executive and Reportorlal Staff:
Quo. B. K'T»T.T.TIIII J
W . H. DYKES,
F. H. THOMPSON.
EMILIB FBANCHS BAUHJR,
L. B. BOWERS, B. BBITTAIN WILSON, WM. B. WHITB, L. J. CHAMBEELIN, A. J. NICKLIN.
J. HAYDEN CLARENDON.
BOSTON OFFICE:
CHICAGO OFFICE:
B. P. VAN HARLINGEN, 195-197 Wabash Ave.
TELEPHONES : Central 414 ; Automatic 8643
MINNEAPOLIS and ST. PAUL t
ST. LOUIS:
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PHILADELPHIA :
R. W. KAUFFMAN.
ADOLF EDSTEN.
SAN FRANCISCO:
CHAS. N. VAN BUBEN.
S. H. GRAY, 2407 Sacramento S t
CINCINNATI. O.: NINA PUGH-SMITH.
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W. Lionel Sturdy, Manager.
Published Every Saturday at 1 Madison Avenue, New York.
Entered at the New Y»rk Post Office as Second Class Matter.
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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
Lyman Bill.
Directory ol P I M O
The directory of piano manufacturing firms and corporations
-Z
;
r
found on another page will be of great value, as a reference
MimUetertri
f o P dealers and others.
Exposition Honors Won by The Review
Chrand Prim
Paris Exposition, 1900
Silver Medal.Charleston Exposition 1902
Diploma.Pan-American Exposition, 1901
Gold Medal.. . S t Louis Exposition, 1904
Gold M edal. . . . Lewis-Clark Exposition, 1905.
LONG DISTANCE TELEPHONES-NUMBERS 4677 and 4878 6RAMERCY
Connecting all Departments.

Cable addre—: "Elblll New York."
NEW YORK,
OCTOBER
19, 1907
EDITORIAL
READER of The Review says: "I was much interested in
your editorial of last week in which you asked, 'What consti-
A
tutes a legitimate profit?' To my mind that is a hard nut to crack.
What may be a fair profit to a man under certain conditions is not
viewed by another dealer in another section of the country in the
same way. I should like to see this subject ventilated in the col-
umns of The Review for the benefit of your readers."
Well, we have thrashed many a question in these columns and
we are very glad indeed to take up the subject of what constitutes a
legitimate profit. It is after all by discussion which tends to bring
out intelligent argument that certain reforms are accomplished.
Some of our contemporaries seem prone to rush into print with
startling headlines and lurid announcements in which denunciation
of the entire trade is made. Now, such frothy presentations amount
to nothing save to show the incompetency of the editors who in-
dulge in wordy pyrotechnics when they should deal logically with
the great questions of the day.
We have always held to the old-fashioned belief that no on-
ward step was ever won by abuse, and in discussing either price
problems or the special brand piano we may as well use reason,
and at the same time use temperate language in describing con-
ditions.
FTER all the giving of what constitutes a legitimate profit
must be settled by rules which are observed in general mer-
chandising. We cannot take as an example to follow one man
who is willing to sell goods on a low margin of profit, neither can
we take another who makes an abnormal profit on regular lines of
merchandise as a safe guide to follow. We must somehow or
other strike an intermediate class when we desire to figure out a
fair average.
Referring to this trade directly, in some small towns where a
dealer has low rent and does practically all his own selling, his
selling expenses chargeable to each piano are very slight and he
can afford to do business on a low margin of profit. Now he can,
under certain conditions, afford to sell a piano at a price which is
A
REVIEW
low when compared with other standards, yet he makes what to
him is a satisfactory profit. In another case a man who pays high
rents and has perhaps abnormal selling expenses may easily figure
out a selling cost of $ioo on each piano, and if the wholesale cost
price of the piano is $ioo and his selling expenses $ioo, all of
which is cash, it virtually costs him $200 before it is delivered to
his customer, and if he charges $100 profit and takes chances on
three years' payments, is he charging a robbery price?
W
HEN viewed from the ordinary standpoint, without investi-
gation, a man who buys regular merchandise for $100 and
sells for $300 is often accused of charging too much. The local
conditions surrounding individual merchants make a very material
difference in moulding one's opinion as to what constitutes a legiti-
mate profit. We must figure the profits somewhat by the actions
of the representative men in every industry and let their actions
be in a degree a guide to us. That certainly would be the fairest
way after all. If we take the leading houses in the music trade,
East, West, North and South and investigate their rules governing
piano pricing, we will have approached somewhat near a pretty
safe basis on which to compute profits. We should, however, not
take radicals in any line as examples. Neither the remote country
dealer or the man who runs in some city a showy establishment
under enormous expenses. We have got to strike an average on
selling expenses, we have got to observe the attitude of other mer-
chants on what constitutes legitimate profits. With such examples
daily before us set by the leaders of finance it would seem that if the
piano men were to take such men as examples and follow them
they would be justified in charging almost any prices for pianos.
And still these men have occupied high positions in financial circles,
and many of them have won eminent places in the State and in
social circles. They sell stock at 1,000 per cent, profit and calmly
pocket the coin while the innocent purchaser of this watered stock
stows away valueless paper in return for his good coin of the realm.
How can a legitimate profit govern such action?
H
ERE is another instance: Suppose a man invents some
specialty which seems to possess great selling force, and
as it is his brain fruit is he entitled to charge what he thinks he can
get for it consistently? As a rule he never figures on a fair profit,
but rather on what he can get from the public. Now is it not
reasonable to presume that a man who has been engaged in the
sale of special brand pianos for years has been influenced somewhat
by the example set before him in other lines? A discussion as to
what constitutes a fair profit may be a good thing for the industry.
There is one thing, however, that should not be overlooked
in the discussion of the prices of special brand pianos which are
interesting so many to-day and that is the incalculable value of the
great names of the piano trade, the splendid service of the men who
have held undeviatingly to a single name. They have helped not
only to dignify the industry, but to maintain it on a high plane.
Strike out the leading names, the artistic class, and pianos would
descend in a very short time in the estimation of the public to the
level of sewing machines or other manufactured articles. We owe
a debt to the great makers and to the men who have always looked
upon piano making as an art. Now r , as in days agone, this body
of men has been a sheet anchor to the trade. But have they been
treated fairly? Have not too often some of these great names
been used simply as a drawing card by dealers to bring customers
in their stores who have been attracted by the golden lettering
on the windows announcing that such and such distinguished pianos
are on sale within? Frequently customers upon entering these
establishments have been shifted, through the policy of the manage-
ment, to the "just as good" pianos. These "just as good" instru-
ments, sometimes bearing the dealer's patronymic, have been offered
at prices which should have secured the purchasers high grade in-
struments, but there again is where the question of legitimate price
comes in.
P
OSSIBLY these dealers have an elastic conscience and view
the question of profit broadly. They figure that they are
entitled under the laws of the country to get what they can in the
way of profits.
We have taken the view, however, for some time past that the
men best qualified to settle this question as to what constitutes a
legitimate profit were the manufacturers themselves, and by estab-

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