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THE
MUSIC TRADE
MEW
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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
dealth with, will be found in another section of this
paper. We also publish a number i of reliable technical works, information concerning which
will be cheerfully
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i
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Player-Piano and
Technical Departments.
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NEW YORK, MARCH 15, 1913
EDITORIAL
W
HILE its extent is difficult to estimate, there is no ques-
tion but that the growing volume of the automobile
business, the rapid increase in the number of owners of machines
and the lowering of the prices of the machines themselves have
all tended to take money out of the pockets of many of those who
would otherwise have purchased pianos or player-pianos. There
is another side to the question, however, and it is that the auto-
mobile and its progress is an excellent indication of the prosperity
of the country at large. It is also pointed out by those interested
that in New York State alone there are between ninety and a
hundred thousand men, ranging from salesmen to garage em-
ployes, who are gaining their livelihood from the automobile,
and that they in turn are prospects for pianos and other high-
class articles.
If millions of dollars are going into the automobiles and the
automobile business, there are also millions coming out of it
in the form of salaries and profits. In this connection it is inter-
esting to learn through a prominent member of the automobile
trade that on January 31 of this year 105,251 motor vehicles were
registered in this State, of which 9,767 were commercial motor
vehicles. The license fees collected last year amounted to be-
tween one and one-half and two million dollars. There are also
45,347 licensed chauffeurs, 1,716 agents, which number includes
factory branches, and 1,928 garages, not actively engaged in
the sale of cars.
The average price of motor vehicles in use in this State may
be conservatively set at $1,500, giving a total investment in
vehicles alone of $157,876,500. The buildings occupied by the
agents and garages, together with their equipment, represent
an additional investment of at least $50,0 0,000. Then there are
forty-five factories and so-called service buildings and ware-
houses, representing a capital investment of another $50,000,000,
giving a grand total investment of more than one-quarter of a.
billion dollars,
REVIEW
J
UDGING from the letters recently received by The Review
some members of the trade are under the impression that a
manufacturer has absolutely no right to stipulate the retail prices
at which his pianos may be sold. We may say that eminent
lawyers hold that the manufacturer of an unpatented article has
the right to announce the prices at which he would like to have
his products resold, and he is probably acting within his rights
if he pays a reward to those who observe his wishes and with-
hold such reward from those who do not.
If a dealer sells at lower price than that desired by the manu-
facturer, the latter may refuse to supply him with goods in the
future. It is only when the manufacturer attempts to exact
some other penalty that he is likely to meet with successful oppo-
sition. So long as he merely refuses to make other sales to the
offenders he is upon safe ground.
This plan, however, is not entirely feasible where the manu-
facturer sells to jobbers and not to the dealer direct, for it has
been held by the Supreme Court of the United States that once
commodities pass into the channels of trade, and are owned by
dealers, the validity of agreements to prevent competition and to
maintain prices is not to be considered, for the manufacturer
having sold his product at prices satisfactory to himself, the pub-
lic is entitled to whatever advantage may be derived from com-
petition in the subsequent traffic.
Mr. Justice Holmes, however, in his dissenting opinion in
this case of Miller vs. Clark, just referred to, points out in a very
interesting way that the manufacturer, by doing business on a
consignment basis, can lawfully control the retail prices of his
goods. His views in this connection are worth quoting:
"The only question is whether the law forbids a purchaser
to contract with his vendor that he will not sell below a certain
price. This is the important question in this case. I suppose
that in the case of a single object such as a painting or a statue
the right of the artist to make such a stipulation hardly would be
denied.
"In other words, I suppose that the reason why the con-
tract is held bad is that it is part of a scheme embracing other
similar contracts each of which applies to a number of similar
things, with the object of fixing a general market price. This
reason seems to me inadequate in the case before the Court. In
the first place, by a slight change in the form of the contract the
plaintiff can accomplish the result in a way that would be beyond
successful attack. If it should make the retail dealers also agents
in law as well as in name and retain the title until the goods left
their hands, 1 cannot conceive that even the present opponents
to regulating the prices to be charged by other people would
deny that the owner was acting within his rights. It seems to
me that this consideration by itself ought to give us pause."
H
OW to keep up and increase the efficiencv of men and ma-
chines, was a subject recently discussed by three practical
factory managers. The exact correspondence of the principles of
management adhered to by these three successful managers is
worthy of notice and is shown in the following policies pursued by
them:
The matter of wage is put up to the individual workman by
paying him by the piece when practicable.
Where payment by the piece is held impracticable a dav wage
is paid with a promise of an increase depending upon the quality
and nuantity of the workman's output.
The incentive of promotion is considered as the strongest spur
to greater efficiency.
Rigid systems of daily and hourlv reports are required showing
the exact condition and work of the factory. These are used as the
basis of promotion or discharge of employes and as a check upon
output of the individual machines.
Pleasant, healthful working conditions are considered as im-
proving the spirit of the workman and the quality of his work.
Tt is considered beneficial to the institution to promote the intelli-
gence of its employes regarding its policies and to enlist their co-
operation.
The ffficiencv of the men and machines and the qualitv of out-
put are improved by use of the best raw material obtainable.
Machines kept in perfect repair are an economy of time. Re.
designing and rebuilding of machines promote accuracy and skill.