Music Trade Review

Issue: 1914 Vol. 58 N. 10

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
fflJJIC TIRADE
V O L . LVIII. N o . 10 Published Every Saturday by Edward Lyman Bill at 373 Fourth Ave., New York, March 7, 1914
SING E 0 P
fe of p ER
Plain Facts for Piano Merchants.
VERY man who is reasonably familiar with music trade conditions must be aware that the
growing ascendancy of the player-piano is bringing about new conditions, and in former
issues of this paper I have frequently called the attention of piano merchants to the fact
that the problem of the trade-ins is one which should arrest the attention of every vendor
of pianos in this country. And, by the way, speaking of the trade-ins, how quickly the trade fell
in with the acceptance of that term—the trade-ins—which I gave to used pianos traded in for new
ones. It is a coined "term, but one which fittingly applies to the specially designated product.
I have stated in previous issues that the time was rapidly approaching when the trade-ins for
new player-pianos would occupy a position somewhat analogous to that held by the square pianos
in days gone by.
_
I wonder if piano merchants have sharpened their pencils and have figured just where the
over-liberal policy adopted in the valuations of the trade-ins would land them in the end! It is
worth while going into the subject carefully.
It will not take an accomplished mathematician, even to go into the subject in a superficial
way, to determine that the present plan adopted by some piano merchants in trailing in used
pianos for new player-pianos is going to place them in a very unpleasant situation unless their
purse strings or their reserves are materially lengthened.
There are some who have unwisely offered to allow the full original price on instruments
traded in for new pianos within two years from date of purchase.
Suppose a dealer takes his pencil and pad and figures his original cost of the first piano sold;
then adds to it his average cost for piano selling; figure an expense of two years on carrying the
lease; then figures the cost of the new player-piano, plus its selling charges, and see where he lands
after he has traded in the first piano, allowing for it its original selling cost.
Instead of two sales at two profits he is likeiy to have made two sales at no profits, with an
old used piano in stock with an uncertain value attached.
Men who have not gone into these matters as closely as they should are fooling themselves,
and that is one reason, to my mind, why piano merchants have not become richer and why busi-
ness has not become more profitable.
The practice of making over-liberal allowances on traded-in instruments is really the basic
reason whv the piano industry has not advanced to the financial position which it should, when
you consider the total amount of retail business done in dollars and cents.
Too many establishments are loaded up to-day with traded-in pianos, which are blocking the
way for new 7 sales and which have cost merchants more than they should have in sales allowances.
Take the case of some of the recent failures over the country. An analysis of the stock of
foundered concerns shows an accumulation of traded-in pianos stored away which have been inven-
toried at absurd valuations.
Now. when men fool themselves they are in somewhat of a dangerous position, and a cold
and careful analysis of their affairs would lead to the belief thai they have overvalued their
traded-in pianos, and with the player growing as tremendously as it has it shows that this year
there will be more traded-in pianos than ever before in the history of the industry. Now what
will become of them?
>
The answer to that question I reaffirm is one of the greatest problems of the trade, but, after
nil, it should not be difficult of solution, provided men would go at it in the right way. There should
be a national understanding among the better class of piano merchants as to a standard of values
which should be placed upon traded-in pianos.
When an automobile moves away from the salesroom its value tumbles at a precipitous rate,
nnd, yet, when a piano is placed out one, two or three years some men have felt that by bolster-
ing up values on trade-ins that it was helping thi'ir business.
E
(Continued on page 5.)
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC TRADE REVIEW
MEW
EDWARD LYMAN BILL - Editor and Proprietor
J. B. SP1LLANE, Managing Editor
Executive and Reportorlal Staff':
H. BRITTAIN WILSON,
A. J. NICKLIN,
CARLETON CHACE,
AUGUST J. TIMPE,
L. M. ROBINSON,
WM. B. WHITE,
GLAD HENDERSON,
L. E. BOWERS.
BOSTON OFFICE:
CHICAGO OFFICE:
E p VAN
in 1IM H WIT SON 824 Washinirton St
- -
HARLINGEN, Consumers' Building.
Main
8950.
JOHN H. Telephone,
WILSON, 8Z4
Washington
at.
22Q SQ S t a t e S t r e g t
T e l e p h o n e j Wabash 5T74.
PHILADELPHIA:
MINNEAPOLIS
and S. ST.
PAUL : Associate, ST. LOUIS :
HENRY
KINGWILL,
CLYDE JENNINGS,
ADOLF EDITIN.
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Published Every Saturday at 373 Fourth Avenue, New York
Entered at the New York Post Office as Second Class Matter.
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REMITTANCES, In other than currency forms, should be made payable to Edward
Lvman Bill.
Departments conducted by an expert wherein all ques-
PljtVPP-PijIIIA
fill
I lajCI I lailU 51
allU
t j o n s o f a technical nature relating to the tuning, regu-
Iating and repairing of pianos and plaver-pianos are
d c a l t w i t h > w i n b e f o u n d i n a n ( , t h e r 8ect i O n of this
paner. 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
Cold Medal
St. Louis Exposition, 1904
Gold Medal. -Lewis-Clark Exposition, 1905
LONO B-XBTANCE TELEPHONES—NUMBERS 5982—5983 MADISON SQ.
Connecting* all Departments
Cable address: "Elbill, New York."
NEW
YORK,
MARCH
7,
1914
EDITORIAL
W
HAT is claimed to be the most drastic workmen's com-
pensation law yet enacted in the United States goes into
effect in New York State on Jnly i, and the piano trade is directly
interested in that the manufacture of pianos, organs and piano
actions is scheduled under (irotip if> of the occupations coming
under the law.
There are four ways for manufacturers to meet the require-
ments of the law. The first is by insuring in a State insurance
fund, the second is to insure in the regular accident insurance com-
panies, the third is for manufacturers to form a mutual association
in one or several trades for insurance, and the fourth is for the
employer to assume the entire risk under the law after satisfying
the State commission of his ability to meet any possible obligations
to his employes.
It is the general opinion in the local trade that the assuming of
the entire risk by individuals or the handling of the insurance
matter through a mutual association,is out of the question, and there
only remains the choice of protection through general insurance
companies or the State insurance fund.
Certain provisions of the new measure have led authorities to
question its constitutionality and it is very probable that the matter
will be fought out in the courts as soon as there is an opportunity
to present a test case, and the New York Piano Manufacturers'
Association, as well as the individual piano manufacturers, should
support any opposition that may develop against the law.
A well-balanced workmen's compensation law that is fair to both
employer and employe is something much to be desired by every
fair-minded man, but a measure that, through carelessness or ignor-
ance in its construction, can, under certain conditions allow the
relatives of an employe, after his death, to collect weekly com-
pensation in excess of his earnings when alive is a burden that the
manufacturers should not be compelled to bear.
Meanwhile the law has been passed and becomes effective
in July.
K analysis by J. E. Bennet, a prominent New York attorney,
of the so-called "anti-trust" bills recently introduced in Con-
gress, and which appeared at length in The Review of last
week, should bring home to every piano man, whether manufacturer
or dealer, the fact that the proposed laws represent not merely some-
thing to be talked about as affecting the great trusts and, therefore,
probably having a reactionary effect on business of all kinds, if
passed, but, rather, something that bids fair to affect the interests
of every concern engaged in interstate commerce.
Under the present wording of the bills, popularly or unpopu-
larly, known as the "Five Brothers" bills, every piano manufacturer
and every piano dealer who may sell pianos in, or ship pianos to,
States other than that in which his store is located will find that he
comes under the provisions of the laws and be put to considerable
trouble and expense thereby, for, as Judge Adamson said recently
in defining interstate commerce, "If a man owned a hen in one State
and she went across the State line and laid an egg in another State,
this would be interstate commerce."
Besides forbidding the charging of different prices for the same
commodity in different parts of the country regardless of distance
and local conditions, restricted competition, the interlocking of direc-
torates and other matters, Bill No. 4 provides for a "trade commis-
s : on" which can demand reports regarding the most inconsequential
details of the business of those engaged in interstate commerce and
gives the commission power to appoint special agents to make such
investigations as it may consider necessary of the business of any
such concern.
All the bills are primarily aimed at the trusts and were probably
framed with most worthy motives ; but, as Mr. Bennet aptly says,
"It seems to me that the Administration, instead of shooting at the
bullseye with a rifle, has loaded a blunderbuss full of all kinds of
shot which will scatter in thousands of directions where it was not
intended to shoot."
The smaller business men of the country—those not in the trust
class—have been duly warned of the dangers lurking in the new
bills and should see that the blunderbuss is changed to the rifle before
the former goes off. The piano men should lend their support to
the opposition for their own protection. That one's business is shot
to pieces by ignorance or accident doesn't make the fact any
pleasanter.
It is gratifying to note that the national Administration has
taken note of the faulty construction of these bills, and Washington
advices this week indicate the bills will be entirely reconstructed so
as to overcome many points which have been adversely criticised.
~ HE letter sent to the piano merchants of Indiana by M. J. Mart-
tene, president of the Piano Merchants' Association of that
^
State, is well worth reading by- association heads in other States, as
well as by State Commissioners of the National Association of Piano
Merchants of America.
This is a vigorous, attention-compelling letter. It points out
that out of 350 piano merchants in Indiana but fifty are members
of the local association, and President Marttene says that this ratio
looks bad for the business and is bad for the business. It argues
either short-sighted business judgment or a failure to appreciate the
importance of associated effort for the protection and improvement
of the piano business.
At no time in the history of the piano trade was it so necessary
that piano merchants should co-operate and work for the common
good as now. Tn each State there are subjects of importance coming
up all the time which call for intelligent, united action.
Legislation inimical to the interests of piano merchants, par-
ticularly in the matter of instalment sales, is being introduced in
the various States, and this is but one of a number of questions
which need supervision and action through association effort.
Every dealer in Indiana should be an association member and
every piano man throughout the United States should manifest a
practical interest in the National Association of Piano Merchants
and also join that body. Tn this connection the views of President
Oscar A. Field, which appear elsewhere in The Review, are worthy
of consideration.
The opportunity to meet with the recognized leaders of the
industry, with the men of high trade ideals alone makes member-
ship in the association worth while.

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