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THE
MUSIC TRADE
REVIEW
EDWARD LYMAN BILL - Editor and Proprietor
J. B. SPILLANE, Managing Editor
Executive and Reportorlal Staff:
Quo. B. KBI.LJDR,
L. B. Bownits,
F. H. THOMPSON,
A. J. NICKLIN.
W. H. D Y K E S ,
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J. HATDBN CLABINDON,
AUGUST J . T I M P B .
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Music Publishers*
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NEW
YORK,
DECEMBER
5, 1908
EDITORIAL
B
USINESS has shown a slight falling off during the past ten
days. In fact, there has been a slowing up in trade, which
had not been looked for by the retailers. Conditions have been
somewhat fitful, and one of the largest piano manufacturers in
New York, while recently discussing trade conditions with The
Review, remarked: "In some cities our trade for the year will be
fully up to the record of 1907. In other points there has been an
absolute stagnation so far as we are concerned. It is difficult to
appreciate these eccentric conditions, or to find a satisfactory ex-
planation for their existence. 'Spasmodic' is the best term to apply
when designating business conditions. Some weeks trade has
moved along splendidly with all the old time swing and energy;
then suddenly it would stop, and not an order would come in. I
do not believe our condition differs materially from that of others.
Trade runs along eccentric lines, but I believe that all of these mat-
ters will be adjusted after the new year shall have fairly set in."
There is no question as to the bettered condition of business.
Everyone admits that, but still it has not reached a point where a
certain volume of trade can be relied on with absolute certainty.
It runs just as the manufacturer whom we quote above remarked—
along eccentric lines.
Edmund R. Wanckel, of the American Felt Co., remarked,
while discussing trade conditions with The Review: "Rarely in
the history of this house have we received so many telegraphic
orders and letters urging us to rush shipments forward, as we have
during the past month. This condition shows one thing clearly,
and that is, that the piano manufacturers have no accumulated stock
of supplies on hand, and it means that the wheels of industry are
turning in a lively manner. We look forward confidently to a
splendid business during the next year. Why should we not ? With
election settled, and a general desire on the part of the people to go
ahead and do business, why it is certain that business will be ac-
complished in a way which will be gratifying and pleasing to most
men who have heavy interests at stake."
REVIEW
R
EPORTS from the London office of this trade newspaper insti-
tution indicate that a general trade slowness still exists
abroad; in fact, business stagnancy has been greatly in evidence
abroad during the entire year. Labor troubles and strikes have
paralyzed business in all trades, and this is evidenced by a falling
off of England's trade amounting to something like £80,000 sterling,
a neat sum of $400,000. Notwithstanding this tremendous shrink-
age, there are some concerns closely allied with the musical world,
which have been particularly fortunate.
In the last issue of The Talking Machine World, a publication
which is a part of this newspaper institution, there is a detailed
account given of the report of the Gramophone Co.'s annual busi-
ness. The trading profit of this company for the year ending June
30, 1908, was £144,125, which, compared with last year's figures of
£263,950, showed a decrease of £119,825.
This falling off did not indicate a lessening of the demand
for the company's goods. The decrease was mainly due to the in-
creased expenditure on advertising and recording, and the excep-
tional charges brought about by the reduction in the price of their
records, which cost the company about £20.000. £144,000 is a pretty
neat showing for any concern to make in such times as the present,
and it means an annual profit of 25 per cent, on the capital of this
company.
The assets of this concern, apart from patents, trade marks
and good will, show a surplus over liabilities of £757,000.
Now, that is "going some," and people who have been speak-
ing lightly of the talking machine have no adequate idea of its
possibilities.
H
OW many piano concerns are there in the world which could
show net profits of like proportions during the past year?
The talking machine business has far outstripped the early predic-
tions made for it, and a company which could pay over $720,000
in dividends, and that in a bad year in England, surely shows sur-
prising strength for its product with the masses.
The talking machine, too, has a strong hold upon the people
of this countrt, and the annual sales of machines run into many
millions.
It would surprise, too, many people, to know that an exchange
record proposition recently put forth by the Victor Talking Machine
Co., has entailed an actual outlay by that concern of $274,000. The
cost of handling and other essentials will easily run this figure up
to $300,000 actual cost, and to quote the words of Louis F. Geissler,
general manager of the Victor Co., "have been paid for in gold
coin." There is no concern engaged in a commercial enterprise in
any part of the world which has voluntarily dug down into its own
pockets, so to speak, and extracted such a princely sum of money
and presented it to its representative as an exchange deal.
Surely that is a staggering statement, and yet the actual profits
made on the individual machines and records are exceedingly small,
when we come to consider the enormous expenses which the manu-
facturers are compelled to stand, in order to maintain their experi-
mental plants, payments to singers and orchestra and thousands of
other incidental expenses which creep in. But the profits are made
up in business bulk. In other words, the sales have to be enormous
in order that good profits be realized at the close of the year.
Many of the music dealers throughout the land, at the sug-
gestion of The Music Trade Review, have taken on talking ma-
chines. They have found them extremely profitable, and those
who advertise and give the care and attention which this special
business requires have been amply repaid by the profits which have
come to them.
T
H E heart of an alleged music trade journalist is heavy and sad.
His pitiful mentality is in such a state that he cannot un-
derstand why piano action manufacturers should advertise their
product, thus creating fame and a position for the fruitage of their
brain and business skill.
More than passing strange—is it not?
Why should a disinterested party be exercised over the ex-
penditures of manufacturers of specialties, who are making their
names and products better known to those who are interested in
them in a direct and indirect manner?
Strange, did we say?
Indeed not, when you know that he is waiting for something to
drop.