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THE
MUSIC TRADE
subjects that will come up for consideration at this gathering. In
addition to the business program outlined, the social features are
such as to make the stay of the vis'iting piano merchants one oi
exceeding pleasure, for Atlantic City is a delightful spot at this
season of the year.
The traveling men will be strongly in evidence at Atlantic City
and one of many enjoyable features in conjunction with the con-
vention of the National I'iano Travelers' Association will be the
annual beefsteak dinner at Hartley's Grill on Tuesday, May 21,
iyi2, at 6:30 p. m.
Legal Questions Answered for the
Benefit of Review Readers
•JWe have opened a Department wherein legal
questions, which have direct bearing on music
trade affairs, will be answered free of charge.
€][This Department is under the supervision of
Messrs. Wentworth, Lowenstein & Stern, attor-
neys at law, of 60 Wall Street, New York.
^Matter intended for this Department should be
addressed plainly, Legal Department, The Music
Trade Review.
T
HROUGHOUT the country there seems to have arisen a
strong resentment against the bill introduced by Representa-
tive Oldfield for the purpose of revising the patent law. and which
is framed along such radical lines that it completely eliminates the
maintenance of prices toward which all industries are aiming as a
means of insuring trade stability.
This bill affects owners of patents in the player-piano trade
just as much as talking machines, but the most vigorous and effec-
. tive fight so far has been made by the manufacturers of talking
machines. And this is not surprising, for the business has been
built up and developed to its present proportions largely througn
the strict upholding of patent rights in the matter of price main-
tenance. The seriousness of the situation, and the tremendous
injury which the proposed legislation would work in the industry
have been fully realized, as also has the futility of endeavoring to
remedy matters by legislation hastily conceived and introduced.
In submitting his argument against the Oldfield Bill, M.
Dorian, treasurer of the American Graphophone Co., made a
timely suggestion when he said: "The subject is too vital to the
welfare of the Nation to be hastily disposed of. A commission
should be appointed and authority given it to consider all phases
of the question ; to summon witnesses and experts, to take testi-
mony and report to Congress its findings, conclusions and recom-
mendations. That way only safety lies."
It is significant that late last w r eek President Taft sent a special
message to Congress asking for legislation to authorize him to
appoint a commission to investigate the patent laws and report
what changes were necessary to make them fit modern conditions.
The President gave several reasons to show the need for a change.
He referred to the recent "patent monopoly" decision of the Su-
preme Court, through which users of a certain machine were com-
pelled to buy from the company which sold the machine a certain
kind of ink for use with it, and enumerated five other reasons which
he said demanded the revision of the patent law. One was that
large corporations bought patents for improvements and sup-
pressed their manufacture. "The public," said the message, "never
receives the benefit of such inventions during the life of the patent."
"It is worthy of careful consideration," said the President's
message, "whether or not legislation should be enacted to prevent
our patent laws from being made the basis of unjust monopoly ex-
tending beyond the legitimate protection to inventors required to
promote science and the useful arts, or the means of stifling im-
provement and the progress of the arts."
The President urged that procedure under the patent laws be
simplified and that the burden of proving the invalidity of a patent
be placed upon him who would infringe upon it. In conclusion,
the President wrote:
"Great care should be taken in any revision not unduly to in-
terfere with vested interests which have been properly created
under the existing laws, or to impair the efficiency of a system from
which so much benefit has been derived by the country."
While the President is to be commended for suggesting a Com-
mission to investigate the patent laws, yet some of his conclusions
are open to criticism, and a reading of Louis F. Geissler's very ex-
haustive and illuminative analysis of the patent situation, which
appears elsewhere in The Review, will demonstrate this.
A law which affects business so vitally as that of patents
should not be hastily changed. A commission of able men who
would make it a point to secure the opinions of authorities in all
lines of industry is certainly preferable to a hastily enacted law
which would demoralize many industries, and make the present
retailing system chaotic. For it must be conceded by all reason-
able men that trade interests are conserved by the maintenance of
prices at which products may be sold.
REVIEW
I
T is difficult to travel in commercial circles to-day without com-
ing across the pessimistic individual who descants on floods,
crops, politics, and a number of othef topics, in which he sees dis-
aster to the country. Here is a type that it is well to keep at a
distance, for if we should listen to his pessimistic wails and agree
with his way of thinking we would all be in a slough of despond.
Someone has well said that the pessimist is a man who, of two
evils, always chooses both, and this is a mighty good definition.
How much more cheering and pleasant it is to meet the opti-
mist with a proper degree of conservatism as a balance wheel—the
man who recognizing the existence of certain troubles aims and
battles to master them and triumphs. This is the type of man that
makes an industry or a country great.
As far as the business outlook in the piano trade is concerned
to-day, it is true things are rather quiet, but fundamental con-
ditions are sound. There is a steady betterment: reported from
agricultural centers and the sun is again shining in the Sunny
South. The trade situation, broadly considered, is most reassuring,
and we know of no better authority from which to draw informa-
tion than from the men who are engaged in selling pianos, and
whose sphere of observation is ample to supply accurate information.
Therefore, let's be of good cheer.
T
HE question of advertising and non-advertising was the sub-
ject of a discussion recently between two manufacturers of
some importance. The non-advertising house made this statement
in substance: "Our goods are better for the dealer to buy because
we charge him less than the manufacturer of advertised goods;
and they are better for the customer to buy of you because we put
into our goods the money others spend for advertising." The rep;y
made by the advertising house covered the situation so thoroughly
that we take pleasure in printing it: "In order that an advertising
campaign shall be profitable, the advertising must be directly re-
sponsible for an increase in volume of sales, sufficiently large that
the profits on the increased business will pay for the advertising and
leave a fair margin for net profit. It, therefore, is not necessary
to raise the price or reduce the quality to pay for the advertising.
The advertising pays for itself. Furthermore, it would be poor
business and foolish for an advertiser to raise prices or reduce
quality, and in this way offset the value of his advertising. He is
not advertising for the fun of it. He advertises to get business,
and it is this increase in business that pays for the advertising, and
not you, Mr. Dealer, or your customer. Advertised goods cost
you no more on account of the advertising. If the price is higher
than that of some non-advertised goods, the difference is in the
quality. The advertised line costs you less to sell, because of the
demand that has been created for it through general publicity
advertising. The manufacturer who advertises to the public helps
you sell his goods. He is not satisfied to simply ship you the goods
and take your money. He helps you to sell them, so that you can
buy more. If you handle advertised goods, your first cost is no
more for the same quality, your selling expense is less and your net
profit larger. Advertised goods are better for your customer to
buy of you because the manufacturer stakes his reputation and
chances for future sales on the superiority of his goods over non-
advertised makes retailing at the same price. For advertising to
be successful it must be backed up with goods of quality."