Music Trade Review

Issue: 1912 Vol. 55 N. 12

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THE
MUSIC TRADE
MEW
EDWARD LYMAN BILL - Editor and Proprietor
REVIEW
A land in which, as it seems, the bounty of heaven can never
fail, and which is constantly enriched in every material respect,
should not .fail to realize its mission to increase the welfare and
happiness not only of everyone'of its citizens, but of the people of
all the world.
Chances for piano business! Why, bless you, there is enough
for all. But it will not come without asking.
Orders will not drop like ripe apples from the tree. Oh, no!
It will require work—-and remember, orders for stock delayed
too long may mean loss of sales later on.
J . B. SPILLANE, Managing Editor
Executive and Reportorlal Staff :
GLAD HENDEKSON,
A. J. NICKLIN,
C. CHACB,
AUGUST J. TIMPE,
WM. B. WHITE,
BOSTON OFFICE:
CHICAGO OFFICE:
JOHN H. WILSON, 324 Washington St.
Telephone, Main 6950.
PHILADELPHIA:
B. BRITTAIN WILSON,
L. E. BOWERS.
E. P. VAN HARLINCEN, 87 South Wabash Ave.
ALBERT G. BRENTON, Assistant.
Room 806. Telephone, Central 414
MINNEAPOLIS and ST. PAUL:
ST. LOUIS:
R. W. KAUFFMAN.
ADOLF EDSTEN.
CLYDE JENNINGS
SAN FRANCISCO: S. H. GRAY, 88 First St.
DETROIT, MICH.: MORRIS J. WHITE.
CINCINNATI, O.: JACOB W. WALTERS.
BALTIMORE, MD.: A. ROBERT FRENCH.
INDIANAPOLIS, IND.: STANLEY H. SMITH.
MILWAUKEE. WIS.: L. E. MEYER.
LONDON, ENGLAND: 1 Gresham Buildings, Basinghall St., E. C.
Published Every Saturday at 373 Fourth Avenue, New York
Enttted at the New York Post Office as Second Class Matter.
SUBSCRIPTION, (including postage), United States and Mexico, $2.00 per year; Canada,
$8.60; all other countries, $4.00.
ADVERTISEMENTS,, $2.50 per inch single column, per insertion. On quarterly or
yearly contracts, a special discount is allowed. Advertising Pages, $75.00.
REMITTANCES, in other than currency forms, should be made payable to Edward
Lyman Bill.
Departments conducted by an expert wherein all ques-
tions of a technical nature relating to the tuning, regu-
lating and repairing of pianos and player-pianos are
p
dealth with, will be found in another section of this
paper. We also publish a number of reliable technical works, information concerning which
will be cheerfully given upon request.
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Exposition Honors Won by The Review
Grand Prix
Paris Exposition, 1900
Silver Medal.. .Charleston Exposition, 1902
Diploma... .Pan-American Exposition, 1901
Gold Medal
St. Louis Exposition, 1904
Gold Medal. .Lewis-Clark Exposition, 1905
LONG DISTANCE TELEPHONES-NUMBERS S9S2-S983 MADISON SQUARE
Connecting all Departments.
Cable address" "ElblU. New York."
NEW YORK,
SEPTEMBER 2 1 , 1912.
EDITORIAL
T
HE piano merchant who does not make progressive moves this
fall is missing golden opportunities. More musical instru-
ments should be sold this fall than during any previous fall season
since time began.
Why?
More people to buy.
More money to pay.
More value to crops.
Just listen and then think it over.
This richly blessed nation will undoubtedly gather a larger
total harvest of all crops this year than it has ever reaped before.
The Department of Agriculture's estimate of corn is for a crop
of 2,995,000,000 bushels, which exceeds the previous highest census
record of 2,927,416,091 in 1906.
The Department of Agriculture's record of the 1910 crop was
3,125,713,000 bushels, but that was not sustained by the census
report.
Undoubtedly the present year's crop will exceed 3,000,000,000
bushels when the harvest is really in.
The estimate of the wheat crop, 690,000,000 bushels, falls a
little below several other years, but not much below the record crop
of 748,460,218 in 1901. Here again the full returns from the
harvest will increase the figures, for the gain is 1 all in the spring
wheat.
The smaller crops—oats, hay, barley, potatoes and the rest—
are nearly all "bumpers." Cotton is less than the record of 1911,
but larger than the average.
The biggest crop all around in the history of the country, or
in the history of any country; an astonishment to the world, and
an event in history. Business springs up under it like a giant re-
freshed. Not only does it sustain our commercial hopes and mag-
nify our prosperity, but it strengthens the faith of the people in
their leadership of the world in all particulars,
FORCEFUL, argumentative and convincing "brief" against
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the enactment of legislation that contemplates interference
with the manufacturer's right to regulate the prices at which his
goods may be sold, is the little volume entitled, "Price-Cutting—A
Restraint of Trade," written by Eldridge R. Johnson, president of
the Victor Talking Machine Co., and reproduced for the benefit
of Review readers in another part of this publication. It is in-
teresting alike to piano manufacturers and merchants as to those
handling talking machines, and the smaller musical instruments.
The subject is handled in the broadest possible spirit, and
shows how the suggested amendment to the present patent law
would work a distinct injury to the best interests of the manufac-
turers of this country.
Mr. Johnson refers to the evils of price-cutting in a graphic
way, and says: "Price-cutting is generally confused with com-
petition and, while it may be so classed, there is a very great and
important difference, as many forms of price-cutting are unques-
tionably unhealthy competition. It benefits no one save a class of
price-cutters who could very well be dispensed with, for they live
and grow rich by breakings into and diverting to themselves the
good-will of a trade that others have created. They never build
up a business, but invariably appropriate that which some one else
has created. The foundation on which their business stands is not
constructive, but destructive and monopolistic. They sell at less
than an ordinary percentage of profit if, by so doing, the trade that
is going to many others can be diverted to themselves. This is the
whole story. There would, of course, be a public gain in this were
it done fairly and in good faith, but more than often it is not done
fairly, or even decently, and is but the means to an end that has
aroused so much indignation in this country—monopoly. There
are many legitimate occasions to reduce prices, but such occasions
are temporary and have no relation to professional price-cutting."
The president of the Victor Talking Machine Co. is entirely in
accord with the arguments presented time and time again in The
Review, that manufacturers should have the right to regulate the »
prices at which their goods are retailed in any case, whether they
are patented or not, and adds: "If they are denied this right, the
quality of goods in general must deteriorate. There is no possible
help for it, unless humanity in general can be cured of selfishness."
The argument is enforced by several illustrations showing how the
"cut-price" versus the "fixed-price" campaign develops.
Mr. Johnson is a keen student of trade and economic conditions
and he presents such a masterly array of facts against the passage
of the suggested amendment to the present patent law that no one
free of prejudice can avoid being impressed. The appearance of
this volume should act as a stimulus to a more earnest campaign
during the present recess of Congress, against the effort being made
to undermine price stability so that there may be a more determined
and cohesive opposition on the part of the manufacturers and mer-
chants of this country to the passage of the Oldfield Bill.
CCOMPANYING this booklet was a letter from the Victor
Talking Machine Co., which treats of the patent reform
issue in a most illuminative way as follows:
A number of new bills, most dangerous to general business
interests, have been introduced in Congress. The purposes of these
bills are to prevent the regulation of prices by manufacturers either
through the patent laws or any other method whatsoever. They
are based on the erroneous theory that the manufacturer has no
rights, interest or responsibility in goods after they leave the hands
of the original producer. These bills are aimed at the so-called
trust monopolies. No doubt their authors are acting in good faith,
but they do not understand the true situation. These bills will not
A
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC TRADE
only fail to accomplish the object intended, but will foster certain
classes of monopolies, based on price-cutting conspiracies from
which the public as well as honest manufacturers and merchants are
already sadly in need of protection.
It is necessary, in order to carry on many lines of modern
business, to have fixed policies and fixed prices. These policies and
prices are regulated according to the character of the commodity
dealt in and the quality of the goods produced, and can only be
maintained by the maintenance of that certain standard of quality
or by the fairness of the policies. All the better classes of manu-
facturers market their goods by some such system either through
the patent laws or by refusing to sell to price-cutters. A complete
estoppel of such a beneficial system would produce a chaotic con-
dition hard to realize. It is only the sweatshop manufacturer and
the producer of goods of poor quality that care nothing about the
price at which their goods are sold or the conditions under which
they are sold.
Many of the great producing combinations have systems of
distribution entirely under their own control. This class of manu-
facturers and producers are not always dependent on patent pro-
tection, nor are they dependent upon the ordinary means of adver-
tising and distribution. Most of these enterprises are a great public
benefit, and, fortunately, they can change their methods faster than
the laws can be changed to interfere with them. But the great
middle class of producers and manufacturers, such as those that
advertise extensively and sell through jobbers to the retailers,
would get the full force of a blow that would prove more disas-
trous and confusing to general business than any legislation yet
suggested.
T
HE writer of this letter savs furthermore: In defense of the
public, the maker upon placing his name and the specifica-
tions on an article, giving the purchaser a clear and truthful con-
ception of the value of the purchase, should be allowed to regulate
the retail price by a contract with the retailer, whether the article
is patented or not. This plan under reasonable restrictions is prac-
tical, and we believe a constitutional riffht if labor is worthy of its
hire. This would stop the tendency to abuse.the patent law; would
encourage the production of a better grade.of goods: would show
up the makers of the poorer grades of goods: would protect the
purchaser against cheap goods marked at a high price: would check
the tendency to combine among manufacturers; in short, its everv
influence is for good. On the other hand, absolute prohibition of
price control is' an innovation with which no civilized communitv
has as yet had experience. Tt \$ Oriental in principle and a back-
ward step. It would encourage monopolistic combinations; reduce
the average quality of goods manufactured to worthlessness by
making the selling price the only feature of competition; would
breed labor troubles by making wage reductions necessary; in short,
every influence is for the bad.
The whole idea of totally and unconditionally prohibiting price
control is wrong, and the quality of goods made in the United
States has rapidly deteriorated since this policy has been pursued,
and will continue to deteriorate until a more intelligent policy is
adopted.
None of the bills offered by individuals or by Congressional
Committees for changing the present patent laws, or for regulating
methods of trade, should be even considered by Congress. No
doubt beneficial changes can be made, but each subject to be con-
sidered should be assigned to a commission composed equally of
business men and Congressional representatives appointed by the
President. These commissions should give each subject careful
consideration, and submit a report to Congress from which intelli-
gent bills could be drawn.
These questions are all of great importance, and bungling
legislation will have a far more disastrous effect in these matters
than anyone is likely, to conceive of without careful study of the
situation from the standpoint of long experience in business affairs.
P
TANO merchants in New York have been enjoying a lively
business during the past couple of weeks. It was ushered
in with the great ante-removal sale announced by the Aeolian Co.
The striking announcements of this house attracted an enormous
crowd to Aeolian Hall with the result that the sales for the first
REVIEW
Legal Questions Answered for the
Benefit of Review Readers
questions, which have direct bearing on music
trade affairs, will be answered free of charge.
•JThis Department is under the supervision of
Messrs. Wentworth, Lowenstein & Stern, attor-
neys at law, of 60 Wall Street, New York.
CJMatter intended for this Department should be
addressed plainly, Legal Department, The Music
Trade Review.
few days broke all records. In fact, a large number of special
salesmen had to be pressed into service in order to look after the
needs of the callers. Other piano concerns, however, were not idle,
and special sales at many other leading houses attracted also a
goodly number of visitors with gratifying results. In fact, the en-
tire special sale campaign emphasized the old saying that, "compe-
tition is the life of trade." And so it is.
No one can underestimate the value of a live, progressive house
in a community, and the more there are of them the better. They
stir up interest in the industry and its products among latent pur-
chasers, and these people in order to get an idea of values wander
around from house to house with the result that oftentimes the best
salesmen and not piano values count. This is the fortune of war.
This stir in the piano retail field ushers in the fall season, and
although many homes were supplied with pianos through the sales
by the various piano establishments last week, there are still plenty
of homes to be furnished with instruments. And there is ample
opportunity for our managers and salesmen to exercise their talents
in interesting the public in the merits of the various pianos which
they represent.
To make customers is to make money, and it requires aggres-
siveness and shrewdness to hold them. The piano merchant must
get new customers to build up his trade, and the way to get new
customers is to give correct values. Hence the importance of keep-
ing the quality standard well in the foreground and selling pianos
in their proper class. This should be the watchword of every piano
dealer whether he be located in large or small towns.
P
OLITICS is not interfering with business this year. Most
people say that and when they keep saying it they come to
believe it and thus the good work is accomplished.
A cheering note came from Detroit, where the annual session
of the American Bankers' Association was held last week. It is
sounded by George M. Reynolds, head of two of the largest bank-
ing institutions in the country. Mr. Reynolds said: "Prosperity
is too well founded to be shaken by politics."
This statement, made by a man eminently qualified to speak
on the subject, is as surprising as it is comforting. With the
nation in the throes of a three-cornered Presidential conflict, stirred
and torn as it has not been politically in the last half a century, it
would be natural for industrial and financial factors to be upset, if
not paralyzed, but they are not.
In most of the previous pre-election Presidential campaigns
the country has' undergone fearful periods of uncertainty and de-
pression. Politicians have held up all sorts of spectres should this
party or that win at the polls.
Undoubtedly thousands of ballots have been cast in these con-
tests' for candidates who were not the choice of the voters casting
them because of these arguments. Most men are unwilling to in-
vite famine or disaster, no matter how strong their political faith
or their party predilection.
It is gratifying, therefore, that no bugaboo of this kind has
been dragged before the people in this contest. The issues are
clearly defined and the voter will be able to go to the polls disillu-
sioned at least. •
In the meanwhile business interests are not being neglected.

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