Music Trade Review

Issue: 1912 Vol. 55 N. 5

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE!
MUSIC
TRADE
KEVIFW
EDWARD LYMAN BILL - Editor and Proprietor
J. B. SPILLANE, Managing Editor
Executive and Reportorlal Stall:
GLAD. HENDERSON,
A. J. NICKLIN,
H. E. JAMASON,
AUGUST J. TIMPE,
BOSTON OFFICE:
JOHN H. WILSON 324 Washington St.
Telephone, Main 6950.
PHILADELPHIA:
C. CHACE,
W M . B. WHITE,
B. BRITTAIN WILSON,
L. E. BOWERS.
CHICAGO OFFICE:
E. P. VAN HARLINCEN, 37 South Wabash Ave.
Telephone, Central 414.
Room 806.
MINNEAPOLIS and ST. PAUL:
ST. LOUIS:
REVIEW
that is, the beginning of manufacture. For instance, an inventor
of an improvement in a player action, or in talking machine
mechanism, might feel that he was "ahead of his time"—that the
public was not yet ready to accept his advanced theories. Under
the present plan such an inventor can, from time to time, submit
amendments to his design which will delay final action in the Patent
Office, and his patent (with full seventeen years to run) need not
be taken out until he feels that the public has been educated up to
the idea and he is ready to manufacture. But if the patent law is
amended as proposed by this initial section of the new bill an end
will be put to such a scheme for waiting for a favorable market.
An inventor will have to get his invention on the market within
two years of the time he files patent application, if he wants the
benefit of the full seventeen years that Uncle Sam guarantees him
an exclusive market.
T
HE second section of the new bill supplants the "compulsory
license'' clause of the old bill, which stirred up so much oppo-
CINCINNATI, O.: JACOB W. WALTERS.
INDIANAPOLIS, IND^ STANLEY IT. SMITH
BALTIMORE, MD.: A. ROBERT FRENCH.
MILWAUKEE, W I S . : L. E. MEYER.
sition. In the original bill this clause compelled an inventor or
LONDON, ENGLAND: 1 Gresham Buildings, Basinghall St., E. C.
manufacturer to either begin manufacturing a new invention or
Published Every Saturday at 373 Fourth Avenue, New York
an improvement on which he had taken out a patent within four
Entered at the New York Post Office as Second Class Matter.
years, or else grant a license to manufacture to any person else
SUBSCRIPTION, (including postage), United States and Mexico, $2.00 per year; Canada,
(mayhap a competitor) who applied for it.
$3.50; all other countries, $4.00.
This stipulation was bitterly fought by both player-piano and
ADVERTISEMENTS, $2.50 per inch single column, per insertion.
On quarterly or
yearly contracts, a special discount is allowed. Advertising Pages, $75.00.
talking machine manufacturers. It was represented that in many
REMITTANCES, in other than currency forms, should be made payable to Edward
Lyman Bill.
•-
instances it was not possible to perfect an improvement or new
Piann anil
Departments conducted by an expert wherein all ques
invention and begin manufacturing within four years. In other
"• lallU allU
tions of a technical nature relating to the tuning, regu :
nonorfmontc
lating and repairing of pianos and player-pianos are
instances
it was shown the manufacturers of musical instruments
If C|PdI I1UVIH9. dealth with, will be found in another section of this
paper. We also publish a number of reliable technical works, information concerning which
held
patents
under which they are no longer manufacturing, for
will be cheerfully given upon request.
one reason or another, but which they do not want to be compelled
Exposition Honors Won by The Review
to share with a competitor.
Grand Prix
Paris Exposition, 1900
Silver Medal.. .Charleston Exposition, 1902
Diploma... .Pan-American Exposition. 1901
Gold Medal.._..*.St. Louis Exposition, 1904
As revised this section is of somewhat different scope. It is
Gold Medal. .Lewis-Clark Exposition, 1905
now framed with a view to giving all possible protection to Un-
LONG DISTANCE TELEPHONES-NUMBERS 5982-5983 MADISON SQUARE
original inventor. The compulsion to license cannot be enforced
Connecting all Departments.
Cable address •• "Elblll, New York."
against an original inventor. He can hold his invention the full
seventeen years without ever manufacturing if he so desires. But
NEW YORK, AUGUST 3 , 1912.
the compulsory license club is held over the head of any manufac-
turer or interest that acquires a patent for the purpose of suppress-
ing the invention or crippling competition by "bottling up" an in-
EDITORIAL
vention.
The third clause of the new measure has to do with that chief
bugbear of the old bill—the section that knocked out price main-
BOLD attempt has been made in the waning days of the tenance and prevented a manufacturer from enforcing a resale
present session of Congress to bring patent legislation to
price on his patented goods. The rewritten clause would cause
the fore through the introduction by Congressman Oldfield of a almost as much havoc as would the old. because it stipulates that no
substitute for his previous patent reform bill and which embodies
purchaser or lessee of a patented article can be sued for infringe-
all the features of the old bill that aroused the opposition of the
ment because he fails to observe the price restrictions imposed by
leading men in the talking machine and music trade industries—
the manufacturer. In one sense this knockout of the principle of
legislation which again imperils the whole principle of price main-
fixed, uniform prices is intended to be more complete than the old,
tenance, although there is some slight qualification in regard to
in that, as now drawn, the prohibition of infringement suits be-
contracts which may lull the reader of the bill into the belief that
cause of price-cutting applies to present patents, whereas the other
it is not as drastic as the old clause.
bill would, in the opinion of shrewd lawyers, have been possible
The introduction of a new patent bill at this time has caused
of enforcement only in the case of patents taken out after the date
a great deal of surprise, and comes before the Legislature with a
of the passage of the bill.
certain prestige as being recommended for passage by the Patent
Committee of the House of Representatives.
A LTHOUGH this rewritten clause affords scant comfort for
The new bill is much more brief than the old one, and does
l~\ the manufacturer and dealer who believes in price main-
not attempt any wholesale revision, but concentrates on a few tenance, it does offer one loophole that did not appear in the old
issues, the very ones, as it happens, which most concern the busi-
bill. It is so written as to dodge the subject of contracts, and to
ness interests having to do with the manufacture and sale of
have no bearing on relations between buyer and seller based on con-
patented articles.
tracts. Heretofore many manufacturers of patented articles have
There are two new clauses which cannot be said to have had
relied solely upon their patent rights to enable them to uphold
any counterpart in the former bill, and yet both of which will have
prices, and have had no formal written price contracts with agents,
bearing upon the music trade. Indeed, everyone of the four clauses
retailers or others. But if this bill should become a law the only
of this latest proposition will have greater or lesser influence upon
salvation of the manufacturer who desires to uphold prices would
existing status in this field.
be to enter into ironclad contracts with jobbers' and retailers, and
The first clause of the new bill provides that an inventor's
perhaps they in turn would have to have contracts with the cus-
patent will in effect expire nineteen years' from the date of his tomers to whom they sold. Under this plan redress for price-
application. The actual term of the patent remains as in the past,
cutting would have to be obtained on an action for breach of con-
seventeen years, so that this changing in the wording of the law tract. Even under this contract system it would seem to be all
will mean that an inventor has two years, and only two years, to
but necessary to have the written agreements extend to the final
get his patent through.
consumer, as otherwise there would be no means of blocking a
This measure is designed to block the plans of inventors who
price-cutting department store that saw fit to buy instruments one
wish to insure patent protection for an idea, but who desire, for
at a time, here and there, at the full retail price, and then offered
one reason or another, to delay the actual taking out of a patent;
them for sale at a cut rate price as "leaders."
R. W. KAUFFMAN.
ADOLF EDSTEN.
SAN FRANCISCO: S. H. GRAY, 88 First St.
A
CLYDE JENNINGS
DETROIT, MICH.: MORRIS J. WHITE.
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC TRADE
The developments in Washington in connection with patent
legislation demonstrate that the members of the trade must be on
the alert in their opposition to this legislation, which, if passed,
would nullify the rights of the manufacturer of a patented article
to restrict the sale or price of such goods. The cut price dealer,
for instance, after buying these goods would have a legal right to
put the prices at any figure chosen, demoralizing the market and
making-a football of the manufacturer who sought to protect his
own rights and those of the merchant who believes in maintaining
prices.
The fight against this new patent reform bill should receive a
new impetus, and manufacturers and dealers should bombard their
representatives in Congress and the Senate with requests to oppose
this legislation which so greatly endangers the stability of prices
and the future of correct merchandising.
NEW form of publicity which is rapidly being utilized by
A
progressive manufacturers is the motion picture. Several
large concerns in other lines than pianos have had moving pictures
made of the various departments of their plants, showing the entire
process of manufacturing, from the raw material to the finished
article ready for shipment. These motion picture machines are
now so perfected that they can be conveniently carried by a sales-
man on his travels, who by their aid is enabled to give not only an
idea of the process of manufacturing that which he is selling, but
he can show pictures 1 of the exact goods in the natural colors—in
fact, an exact facsimile of the original product, thus bringing his
customers in faraway cities into the closest possible touch visually
with the manufacturing methods of the house he is representing,
as well as of the completed products 1 , and thus receiving impressions
of how they appeal to prospective purchasers.
This plan has been utilized by one or two of the prominent
furniture manufacturers in the West whose salesmen have given
exhibitions by means of motion pictures in the larger cities, in this
way getting their customers acquainted with the extent of the
manufacturing resources of the house they are representing, as
well as the finished goods and latest styles produced.
This suggests similar action on the part of our progressive
piano manufacturers. How interesting it would be were a piano
merchant able to supplement a player-piano recital, for which
special invitations were issued, with an illustrated talk on player-
piano construction, showing the innumerable details connected with
the production of the instrument, and the extent of the plant of the
manufacturer. It would have a tremendous value in influencing
public opinion in favor of the instrument, and in stimulating a bet-
ter conception of the functions and purposes of the player action
and the player-piano as a whole.
It is obvious that motion pictures are to play a tremendous
part in the advertising plans of large manufacturing concerns in the
rear future. Not alone are they available for and productive of
great results in developing domestic trade, but as a means of edu-
cating the foreigner to the American way of doing things they open
up a tremendous field for the transmission of knowledge in a most
illuminating way.
r
I "HE educational value of motion pictures in the hands of a
-*- salesman who is a good speaker is beyond computation. As
far as developing the interest of the people of foreign countries
in American products, they are really as effective as if the foreigner
were brought into the manufacturer's plant and taken over each
department of production. For through the motion picture he is
brought into personal relation with the manufacturing processes
of the various articles in which he is interested and in this way
enthusiasm and interest are aroused, and the salesman can proceed
with his work backed by the fact that he is able to convey a thor-
ough knowledge of how the products which he sells are manufac-
tured.
Motion pictures have big possibilities for the manufacturer in
an advertising way. From being merely an amusement feature
they are bound to work their way into a new sphere of usefulness
just as the talking machine has developed from a toy into an edu-
cational factor of the greatest importance, which is recognized
to-day by the leading educational authorities of the United States.
This is evolution truly, and of the right sort.
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.
CJThis 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
HE fiscal year just closed has again pushed the great total of
our foreign commerce upward. If the coming year shows
like increases, we shall pass the four-billion dollar mark, if, indeed,
we do not pass it in the present calendar year. We exported
$2,204,222,088 worth of our farm and factory products. Last year,
the biggest till now, we exported $2,049,320,199 worth. The in-
crease in exports is almost entirely an increase in manufactured
goods, for our agricultural exports were almost identical in value
with the year 1910-11. The non-agricultural exports were $1,260,-
219,872, compared with $1,104,957,245 in 1910-11. The exporta-
tion of manufactures in the fiscal year just ended more than justi-
fied the estimate of the Bureau of Statistics, that the total value
would in 1912 for the first time cross the billion dollar line. That
bureau, which this week completed its figures showing the expor-
tation of manufactures, places the total value of manufactures ex-
ported in the fiscal year" at $1,021,753,918, of which $674,302,903
was the value of manufactures ready for consumption and $347,-
451,015 that of manufactures for further use in manufacturing.
B
USINESS men who hire lawyers to settle their disputes do
not know, perhaps, that the Chamber of Commerce of New
York has a better method—better in every way, short, cheap and
fair. At the recent convention of the National Association of
Credit Men, held in Boston, Sereno S. Pratt, of the Chamber,
asked the members whether their clients had protracted suits at
law, and whether their liquid funds were shortened on that ac-
count. Of course, every credit man should ask whether a person
seeking credit is engaged in litigation, and, if so, why he does not
try the more speedy and less expensive method of arbitration sug-
gested by the Chamber.
The Chamber of Commerce offers to every business man in
this country, or doing business with it abroad, the facilities of its
Committee on Arbitration, of which Charles L. Bernheimer is chair-
man. The Chamber itself commands respect, the men composing
its committee are picked men, judicial and practical, with large
business experience. The fee paid to the arbitrators is purposely
restricted to that of a referee, ten dollars a day. The hearings may
he in private, and a dispute that the courts would protract for
months or even years may be settled within a few hours. What a
blessing!
The voluntary arbitration, which becomes legal and binding,
deprives the controversy of heat. As the New York Times in-
stances, two of the biggest merchants of this city this year selected
an arbitrator of the Chamber and submitted papers. Before the
action could come to an issue they found that the points of dif-
ference were not great, and settled the dispute themselves. In
this case the Committee on Arbitration served really as a Committee
of Concilliation. Above all, resort to it overcame a disagreeable
incident quickly, and at practically no expense.
B
ASED upon the official statistics recently compiled, New York
City is the most important manufacturing center in the
United States. With a population of 5 per cent, of that of the
entire country, the city has nearly TO per cent, of the industrial
establishments, with an output of almost TO per cent, of the entire
manufactured products.

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