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THE
MUSIC TRADE REVIEW
REVIEW
EDWARD LYMAN BILL • Editor and Proprietor
**
••"•*«*
J. B. SPILLANE, Managing Editor
newspaper men, who obviously are lacking in business judgment,
injure their friends and supporters by their careless acts.
Judgment should be used by the conductors of trade journals.
They hold in their hands a weapon the power of which should be
used with extreme care when dealing with such vital interests as
credit and finance.
Many a solvent firm has been hurled on the rocks of disaster
by some of these reckless and brainless newspaper conductors going
off at half cock.
R
EPORTS have been freely circulated in trade circles to the
effect that the unsecured creditors of the H. P. Nelson Co.,
JJ. BBITTAIH WILSON,
CAHLBTON CHACE,
L. M. ROBINSON,
GLAD HBNDEHSOW,
A. J. NiCKLiN,
AUGUST J. TIMPE,
WM. B. WHITE,
L. E. BOWEK.
Chicago, might expect a substantial dividend to be paid within the
BOSTON O F F I C E :
CHICAGO OFFICES
near future. Some of these reports have been of the most opti-
JOHH H. WILSON, 324 Washington St.
£ P - V _ AN HARLIMCEM Consumers' Building,
mistic character concerning the dividend which the creditors would
Telephone, Main 6950.
™° So. State Street. Telephone, Wabash 5774.
HENRY S. KINGWILL, Associate-
receive. Other reports severely criticizing the manner in which
LONDOM, ENGLAND: l Gresham Buildings, Basinghall St., E. C.
the Nelson estate has been handled have also gone the rounds of
NEWS SERVICE IS SUPPLIED W E E K L Y BY OUR CORRESPONDENTS
LOCATED IN T H E LEADING CITIES THROUGHOUT AMERICA.
the trade.
Published Every Saturday at 373 Fourth Avenue, New York '
As a matter of fact, it seems as if the affairs of the company
Entered at the New York Post Office as Second Class Matter.
were complicated to such a degree that it will probably be a long
SUBSCRIPTION (including postage), United States and Mexico, $2.00 per year;
Canada, $3.50; all other countries, $5.00.
time before the assets can be turned over into cash.
ADVERTISEMENTS, $3.50 per inch, single column, per insertion. On quarterly or
\n order that the creditors might learn something definite, we
yearly contracts, a special discount is allowed. Advertising pages $110.00.
REMITTANCES, in other than currency forms, should be made payable to Edward
directed an inquiry to William T. Abbott, vice-president of the
Lyman bill.
Central Trust Co., of Chicago, who is one of the trustees of the
Departments conducted by an expert wherein all ques-
PlJinA
tions of a technical nature relating to the tuning, regu-
Nelson property, asking him if he had any definite statement to
lating and repairing of pianos and player-pianos are
dealt with, will be found in another section t this
give
out concerning the payment of the first dividend to the unse-
paper. We also publish a number of reliable technical works, information cone .ning
cured creditors.
which will be cheerfully given upon request.
Mr. Abbott's reply is herewith appended:
Exposition Honors Won by The Review
Grand Prix
Paris Exposition, 1900 Silver Medal.. .Charleston Exposition, 1902
"Chicago, August 26, 1915.
UiPloma
Pan-American Exposition, 1901 Gold Medal
St. Louis Exposition, 1004
Gold Medal. .Lewis-Clark Exposition, 1905.
"Music Trade Review, New York City :
&ONG DISTANCE TELEPHONES—NUMBERS 5982—5983 XASXSON SQ.
"Gentlemen—Answering your recent inquiry regarding the
Connecting 1 all Departments
•
payment of dividends in the If. P. Nelson Piano Co. case, we beg
Cable address: "Elbill, New York."
to advise that for many reasons it has not seemed possible as yet
NEW Y O R K , S E P T E M B E R 4 , 1915
to pay a first dividend. We appreciate the very natural impatience
of general creditors to receive some tangible evidence that an estate
is being conducted in a way to yield favorable results to the
EDITORIAL
creditors. You must bear in mind, however, that the principal
asset of this estate consists of notes, contracts and leases in small
T would seem from evidence furnished as if the conductors of
amounts, scattered over the country, and that the business condi-
some trade journals did not exercise reasonable judgment in
tions of the past year have made collections very slow and have
the manner in which they handle news concerning the financial diffi-
required extensions in numerous cases.
culties of individuals and firms in the music trade.
"The trustee has also deemed it advantageous before paying
In the first place, some have printed matters in relation to
the first dividend to reduce, as far as possible, the contingent liabili-
confidential meetings of creditors, when every effort was being made
ties of the bankrupt. It is apparent that the amount of dividends
to tide over a critical situation.
received is as much dependent upon reducing the amount of out-
The publication of these conditions has in more than one in- standing claims as it is in increasing the amount of collections.
stance precipitated trouble which might have been avoided.
The negotiations through which this result lias be 11 accom-
This to our mind is not constructive work. On the contrary,
plished have also proceeded slowly, but we believe that when
it is very destructive work, and trade papers are not aiding the cause
the trustee's report of its efforts in that regard is presented, there
which they pretend to represent by such actions. Many a time a
can be no criticism over the fact that it has taken some months to
perfectly solvent firm is unable to realize on its assets in such a
accomplish that result. Further, the amount of cash now on hand
manner that it can meet maturing liabilities. Extension and often-
would suffice to pay only a small dividend. The machinery of
times assistance is necessary to bridge over situations of peril, and
paying a dividend through the Bankruptcy Court is cumbersome,
yet at such times trade newspaper men hearing of such conditions,
and the proportionate expense is large, and the courts are adverse
rush into print and precipitate trouble, injuring men whose inter-
in paying an initial dividend until it can be of so substantial an
ests are locked up with the embarrassed company.
amount as to absorb the extra expense. Without committing the
Then, again, there is another point. Frequently creditors are
trustee to any definite promise, it is our judgment that a fairlv
substantial dividend may be declared and paid within the next six
advised through their legal representatives of the financial difficul-
weeks. Yours very truly,
ties which are confronting firms with whom they are doing busi-
ness. These are private communications and are not intended for
"W. T. AmioTT, Vice-President."
publication, although they may be shown to representatives of trade
papers at various times, sometimes in confidence, and sometimes
N the news columns of The Review last week there appeared a
with the belief that they will use discretion in handling the situation.
protest by one of the officers of the National Piano Co., of
Off they rush and print these confidential matters and trouble then
Boston, against the anxiety of the manufacturers of supplies of
follows, not only for the companies involved, but for others outside,
various sorts to engage in the making of war munitions, being daz-
for the whole industry is more or less interlocking.
zled by the enormous profits, or report; d profits, that come to tho : e
who fill the contracts for the belligerent nations in Europe. The
These reports frequently contain statements of the amounts
complainant in question does not protest as an advocate of peace
which may be owing to creditors. Now, the publication of these
or neutrality, but rather from the standpoint of the business man
amounts serves no good purpose, and the custom of The Review
who is called upon to suffer a more or less severe financial loss
is to avoid itemized creditors' statements as much as possible in
through inability to get the supplies necessary for the continuance
reports of failures.
of his legitimate business.
Confidential agreements between creditors should not be repro-
It would seem that manufacturers taking care of an established
duced in any trade publication. They place weapons in the hands
legitimate trade in this country are somewhat unfair in turning
of competing houses which may be made so harmful that they will
their entire factories and equipment over to the making of war
depreciate the assets of the house which is in trouble. Thus these
Executive and Reportorial Staff:
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