Music Trade Review

Issue: 1913 Vol. 56 N. 11

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC TRADE
MEW
EDWARD LYMAN BILL - Editor and Proprietor
J. B. SPILLANE, Managing Editor
Executive and Reportorlal Stall:
B. BiiTTAiN WILSON,
A. J. NtCKLiM,
CAMLETON CHACB.
AUGUST J. TiMPE,
BOSTON OFFICE:
IOHM H. Wilson, 884 Washington St.
Telephone, Main 6950.
PHILADELPHIA:
L. M. ROBINSON,
W H , B. WHITE,
CHICAGO OFFICE:
E. P. VAN HARLINGEN, 87 South Wabash Are.
Room 806. Telephone, Central 414
MINNEAPOLIS and ST. PAUL:
R. W. KAUFFMAN.
GLAD HENDEKSON,
L. E. BOWMS.
ADOLF EDSTEN.
SAN FRANCISCO: 5. H. GRAY. 88 First St.
CINCINNATI, O.: JACOB W. WALTERS.
BALTIMORE. MD.: A. ROBERT FRENCH.
ST. LOUIS:
CLYBE JENNINGS
DETROIT. MICH.: MORKJ? J. WHITE.
INDIANAPOLIS, IND.: STANLEY H. SMITM.
MILWAUKEE, W I S . : 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,
$8.60; all other countries, $4.00.
ADVERTISEMENTS, $2.60 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
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
h f l l
given
i
upon request.
t
Player-Piano and
Technical Departments.
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 5982-5988 MADISON SQUARE
Connecting all Departments.
Cable address •• "Elblll. N e w York."
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.
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC
TRADE
REVIEW
To What Deceptive Advertising Leads.
HI^ enormity of the damage done the piano trade through
many dealers fathering misleading advertising becomes
more apparent every day. Legitimate merchants who have the
best interests of the trade at heart are compelled not only to fight
the unethical methods of their competitors, but they have to
educate the public to a realization of the fact that there are
honest men in the piano trade—men who practice what they
preach—who do not habitually deceive or mislead.
That the men engaged in the making of our laws in the
various States are not uninfluenced by the "bad reputation"
which the piano trade has acquired, owing to the disreputable
practices of some of its members, is apparent from the remarks
of A. L. Vernon, who has been an active member of the legis-
lative committee of the Piano Merchants' Association of Ohio.
In the Legislature of that State a bill has been introduced
amending the general code, which, if passed, will work a great
injury to piano merchants selling pianos on instalment. The
piano men of Ohio are up in arms against this legislation, and,
as remarked by Mr. Vernon following the arguments before the
Judiciary Committee, one fact was brought prominently to
notice, and that is the impression the public and the law-makers
have as to the (supposed) great profits in the instalment branch
of the piano trade, which, the chairman of the committee stated,
was evident "from the class of advertising conducted by some
piano merchants in offering such great discounts and induce-
ments for cash, which was proof of the supposed great profit in
instalment sales."
Mr. Vernon also properly remarked: "This is farther
evidence of the great injury being done to the piano trade
through prevailing methods in advertising by a certain class of
our trade for some years past."
There can be no question as to the accuracy of these con-
T
clusions. During the past month we have received at this office
hundreds of misleading advertisements clipped from newspapers
in various parts of the country that are a disgrace to the trade
and to those who issued them. In every one of them there is
evident a desire to trade upon the names of well-known instru-
ments—offering them either "new" or "just as good as new" at
ridiculous prices, simply because these instruments are handled
by a competitor.
This is the kind of advertising that wears away the very
foundation of public confidence, and leaves an impression that
is distinctly harmful to the present and future conduct of the
industry.
How much better would be the policy, now adopted by
many piano merchants, of not advertising by name any pianos
of which they are not the authorized representatives. No matter
how many second-hand pianos they receive in exchange they
dispose of them without making a feature of their names or
cut prices. And this policy also applies to the window display
as well as to the advertising in the daily papers.
The present practice of advertising the names of pianos for
sale at ridiculous prices, particularly those for which the dealers
are not the authorized representatives, not only confuses the
public mind on the subject of piano values and piano names, but
as it is conducted to-day by some concerns it is distinctly mis-
leading if not fraudulent in its conception.
Surely there is a remedy for this demoralizing condition,
and it centers largely on a higher regard for one's business—
for its prestige and honor—greater intercourse and friendlier
feelings among competitors which may be engendered through
the formation of local associations where ordinary misunder-
standings may be removed to the end that business may be con-
ducted on a higher ethical plane than is now the custom.
Credit Pathologist and His Mission.
HE "psychology of credits" is a new technical credit phrase
that drifts through to us from time to time. We are going
to take a still more advanced step in credit terminology, says J. H.
Tregos in the Monthly Credit Bulletin, and coin a phrase that is
perfectly new, "credit pathology."
Pathology is a medical word and is the science of diseases, their
causes, manifestations and effects. The pathologist is a specialist,
who through clinical and laboratory investigations essays to dis-
cover the causes for symptomatic disorders and to determine if the
diseases should prove mild or fatal.
A "credit pathologist" is also a specialist who, in the laboratory
of his own credit department, endeavors to discover the causes for
svmptomatic credit disorders and then definitely decide if the
T
diseases which affect credit risks are likely to be mild or fatal.
As the medical pathologist is a help servant to the general
practitioner, so may the credit pathologist prove of great assistance
to the general credit man.
The call has distinctly come for such specialization, and to the
men who are not immersed solely in the success and good record
of their own credit departments, but in the credit profession, and
that all credit grantors may profit and become more deeply skilled
through their discoveries and conclusions. This is the call for
service that has never failed of a generous response, and we shall
expeet to see many diligent workers in the credit science earnestly
endeavoring to contribute their part in demonstrating its indis-
pensable value to a sound and growing commerce.
Adjusting Financial Breakdowns.
HE National Association of Credit Men is taking a firm
stand in favor of the adjustment of involved estates out of
court. There is said to be a steadily growing demand for this
kind of settlement, which, in a recent general letter to the mem-
bers of the association, was discussed as follows:
"One of the most successful credit men in the country has
pointed out that, with all the progress that has been made in
getting together in exchanging credit information, little real
progress has been made, except in a few States, in adjusting
credit breakdowns. There are none but will admit the sound-
ness of the principle of friendly adjustments where fraud, with
its complications, has not entered. The trouble is, as this man
says, creditors give their tottering accounts unconditionally to
collection agencies who needlessly force estates into bankruptcy
though they would yield far better returns to creditors if other-
wise handled,, It can only be concluded that in such cases the
T
possible fee is the great incentive to the agency's action.
"Quite as frequent a cause of trouble is the fact that one
or a small group of creditors refrain from entering a friendly
adjustment with the expectation that they will be bought out
in order to avoid bankruptcy proceedings and that they will
thus gain that preferential position over other creditors, the
demoralizing influence of which largely brought about national
bankruptcy legislation.
"Credit grantors should be alert to the situation and recog-
nize that the next step in orderly progress in bettering credit
conditions is the cultivation of friendly adjustments."
This communication covers a topic which is as interesting
to members of the music trade as it is to every other industry
in this country. Any steps that will tend to avoid litigation or
unnecessary expense in adjusting credit breakdowns is to be
commended.

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