Music Trade Review

Issue: 1912 Vol. 55 N. 8

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
TH
MUSIC TRADE
REVIEW
EDWARD LYMAN BILL - Editor and Proprietor
J. B. SPILLANE, Managing Editor
Executive and Reportorial Stall:
GLAD. HENDERSON,
A. J. NICKLIN,
H. E. JAMASON,
AUGUST J. TIMPE,
C. CHACE,
B. BRITTAIN WILSON,
WM. B. WHITE,
L. E. BOWERS.
BOSTON OFFICE:
CHICAGO OFFICE:
JOHN H. WILSON, 324 Washington St.
Telephone, Main 6950.
PHILADELPHIA:
R. W. KAUFFMAN.
E. P. VAN HARLINCEN, 87 South Wabash Ave.
Telephone, Central 414.
Room 806.
MINNEAPOLIS and ST. PAUL:
ST. LOUIS:
ADOLF EDSTEN.
SAN FRANCISCO: S. H. GRAY, 88 First St.
CINCINNATI, O.: JACOB W. WALTERS.
BALTIMORE. MD.: A. ROBERT FRENCH.
CLYDE JENNINGS
DETROIT. MICH.: MORRIS J. WHITE.
INDIANAPOLIS, I N D J 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
Entered at the New York Post Office as Second Class Matter.
SUBSCRIPTION, (including postage), United States and Mexico, $2.00 per year; Canada,
$3.50; 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.
and
aUU
Departments conducted by an expert wherein all ques-
t; o n s 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.
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 5982-5983 MADISON SQUARE
Connecting all Departments.
Cable address " "Elblll, N e w York."
NEW YORK, AUGUST 24, 1912.
EDITORIAL
I
REVIEW
I
N a letter recently received by The Review from a prominent
Western piano merchant, he complained vigorously of the
growing use, or abuse, of the guarantee in the piano trade, and
stated that many of the manufacturers of commercial pianos were
putting forth a guarantee with their instruments that was beyond
reason, and that many retail piano merchants are trying to outdo
themselves by issuing a guarantee of their own for an unlimited
number of years which on the very face of it is wrong and impos-
sible of performance.
He suggested that this entire matter of the guarantee should
be brought up for consideration at the next convention of the
National Piano Manufacturers' Association, some action taken in
a public way that would prevent this unlimited guarantee from
going beyond the grounds of reason and commonsense.
It is worth noting that the members of Jewelers' Associations
have expressed the sentiment in resolutions passed at recent con-
ventions that they are beginning to look with disfavor upon the
guarantee by manufacturers that an article will wear a certain
length of time, and it is suggested that guarantees by the manu-
facturer should refer simply to the question of the article giving
satisfactory wear, and that no period of time should be mentioned.
The editor of The Jewelers' Circular-Weekly states that most
of the members of the associations in favor of abolishing the guar-
antee have taken the ground that it not only tends to put the
merchant who handles the goods on a par with the department store
and catalogue houses, but also gives the opportunity, particularly
to the irresponsible manufacturer, to get an advantage over the
maker of standard goods by putting on his products a guarantee on
which he never will or never expects to make good. He adds:
"There can be no doubt that the business of responsible manu-
facturers has been seriously hurt in the past, through the fact that
certain concerns have put out the cheapest kind of plated articles
and 'guaranteed' them to wear up to or more than the time that the
standard article is supposed to wear. What is more, the guarantee
system has been seriously abused by unscrupulous peddlers and
other people who have bought up old guaranteed articles for a song
and caused them to be either refinished or replaced with other
articles by the manufacturer and sold the same to the public in com-
petition with the legitimate jeweler.
''However, with all there is to be said against the guarantee,
there is 1 a question as to how the public is going to take the aboli-
, tion of this warrantee by the manufacturer as to the wearing quali-
ties of an article and whether or not people will continue to buy the
cheap trash, which is 'guaranteed,' as against standard articles not
guaranteed, should the legitimate manufacturers of the country re-
solve to act on the suggestions made by the retail jewelers' asso-
ciations.
"The abolition of the guarantee has worked well in Canada,
according to the reports made by a number of people who have
looked into the situation there, but in Canada a guarantee that an
article will wear a certain length of time is forbidden by law, and
the 'faker' and swindler cannot compete with the legitimate manu-
facturer there. Whether or not such a prohibition against the use
of the guarantee could be passed in this country, either by the
Federal Government or by the States, is a question on which legal
authorities have seriously disagreed, and even if it can be done
constitutionally there is also the question whether the public (until
buyers generally were thoroughly educated as to the worthlessness
of many guarantees) will not strongly oppose any legislation of this
character.
"Whether or not the guarantee be abolished, it is well for the
jeweler to educate his customers to the fact that, in the jewelry line
at least, the guarantee of an article to wear a certain number of
years is nothing in itself unless backed by the reputation of a re-
sponsible manufacturer, and should the responsible manufacturers
stop issuing the guarantee, the merchant must then show to his
customers on every possible occasion that the guarantee instead of
being indicative of quality is a sign that the goods are cheap and
worthless, and is but a bait to induce the public to buy lines which
could not be sold on their merits alone."
T would seem from present indications that the proposed Piano
& Organ Supply Trade Association will be formed within the
very near future. At least the comments concerning- this new move
have been favorable and promises of support have been ample so that
it is believed that its formation is now certain.
Fritz Dolge, who is at the head of the move, has been in con-
sultation with the heads of a number of prominent supply houses
and they have stated unhesitatingly that they favor the proposed
plan.
It is believed that a readjustment of credits in the supply trade
will work to the advantage of the industry and it is said that the
platform of the new association will define clearly its regulations
and objects so that the members will know precisely what they are
expected to live up to.
A preliminary meeting will be called some time during the
first part of September, and before the first meeting it is presumed
that more, members of the supply trade will pledge themselves to
the support of the move.
While discussing the proposed association last week, a well-
known member of the supply trade said: "The supply trade as a
whole has be'en blamed by many for encouraging and keeping alive
unfair competition. In other words, bolstering up a certain class
of manufacturers who have not been entitled to credit and who
have been a serious handicap to those who pay their bills.
"There may be something in this charge, but it is certain that
there have been in the past, and there will be in the future, many
deserving men who are entitled to credit by reason of their char-
acter and ability and who are not long on finances; but these men
if given a liberal credit will advance as others have in the p#st to a
commanding position, so that in my opinion credit should be given
to the deserving, but it should be withheld from men whose record
IFFICULT problems that occur from time to time in busi-
does not justify them to receive special financial favors.
ness are being solved daily by those who have the courage
to
face
them and the intelligence to seek advice and counsel from
"I heartily favor the new association and I believe it will work
J
those
qualified
to speak.
out for the good of the entire industry.'
D
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE
REVIEW
The Rights and Liabilities of a Consignee
W
HAT are the rights and liabilities of a consignee? A con-
signee is one to whom goods are shipped, usually that he
may sell them for the owner. He is also known as a factor or a
commission merchant, and as there have been a great many cases
in the courts involving his rights and liabilities, there is a consider-
able body of law concerning him. For any merchant, wholesale or
retail, whether he carries on the regular business of consignee or
not, is nevertheless apt to have goods occasionally consigned to him
for sale, and he should therefore be interested in what the law says
he may and may not do.
A consignee is the agent of the owner and, generally speaking,
he will be judged by the law of agency. A consignment is 1 not a
sale, and the consignee is not the owner. The consignor, or the
shipper, remains the owner, subject to some exceptions, until the
goods are sold.
The duty of a consignee to whom goods are shipped to sell for
the owner is exceedingly strict. His authority as to making sale is
of course fixed by the contract between himself and the shipper.
This contract, incidentally, should always be full and complete, and
leave as little to discretion as is necessary. Besides his express
authority, the consignee will have the implied authority to do what-
ever is necessary to carry out his contract.
Here are some of the things a consignee may not do:
He can do nothing in connection with the goods placed with
him for sale, which will benefit himself at the shipper's expense.
He cannot, after selling the goods on certain credit, extend the
period thereof.
He cannot accept pay for the goods in anything but money,
unless given authority to do so by the principal.
He cannot sell the goods to himself.
A consignee employed to sell cannot buy so as to bind the ship-
per, his principal.
He cannot compromise claims which arise out of the sale of the
goods'.
He cannot pledge the goods as security for a loan to himself,
although he can do so to secure a loan needed by him to pay the
shipper for the goods before their sale. This rule has been modified
by laws in various States which protect persons loaning money in
good faith, and in ignorance of the circumstances, to consignees, on
goods belonging to shippers.
If the goods are shipped to him to sell in certain markets, hz
cannot sell them in other markets.
Here are what some leading cases decide a consignee can do
and bind his principal:
He can sell the goods in his own name and this makes a good
sale.
He can sell on reasonable credit if there are no instructions or
customs to the contrary.
He can give with the goods a reasonable guarantee as to condi-
tion of soundness, etc., when they are sold, but he cannot give any
unreasonable warrant or guarantee, such as to guarantee them to
keep sound under conditions which would inevitably destroy their
soundness.
The importance of this is that if the warranty was within the
consignee's right to give, the buyer can hold the shipper on it, while
he cannot hold the shipper, but can only hold the consignee per-
sonally, if the guarantee was not within the consignee's power.
Next, the consignee can accept payment for the goods and dis-
charge the buyer, so that the latter cannot be compelled to pay again.
Readers hereof will remember that the law is otherwise where a
buyer pays someone not authorized to receive the money.
If the consignee has sold strictly according to his instructions,
the sale is binding upon the shipper, and he cannot escape from it
no matter how much it may be to his disadvantage. Sometimes a
consignee is not given explicit instructions', in which case he can
use his discretion and is not responsible for errors in judgment. A
consignee must be particularly wideawake as to the financial stand-
ing of persons he sells other people's goods to, and if he is negligent
and lets them go to irresponsible people, the shipper can hold him
personally.
As stated, the title to goods shipped to a consignee for sale re-
mains in the shipper until they are sold. The consignee's creditors
cannot seize or attach them, nor their proceeds after they are sold.
Likewise, if the consignee goes into bankruptcy, the consigned
goods, or their proceeds, if they have been sold, do not pass to the
assignee with the rest of the bankrupt estate. So if the consignee
transfers them without authority, the shipper can get them back,
unless their transfer was made to a person innocent of the circum-
stances, and was apparently within the scope of the consignee's
authority. In some such cases the person to whom the goods are
transferred may be permitted to keep them.
Many shippers are under the mistaken impression that they can
merely bring a civil suit against a consignee who sells the goods and
fails to remit the proceeds. It is true that they can bring such a
suit, but they can also issue a warrant for his arrest for embezzle-
ment. Since he is merely the shipper's agent, the money he collects
and retains, is the shipper's money, and he is therefore guilty of a
criminal offence when he fails to turn it over. Several States have
passed laws creating the offence of "larceny as consignee," but even
where this has not been done, it would still be a criminal offence
under the common law.
The consignee, however, has a lien on the goods, or on the pro-
ceeds of their sale, for all commissions to which he is entitled, or
for advances, or other expenditures properly incurred in connection
with the sale. This lien even extends to the insurance money if
the goods are destroyed by fire, and the consignee can deduct such
sums from the fund in his hands whether the shipper like it or not.
—Copyright, May, 1912, by Elton J. Buckley.

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