Music Trade Review

Issue: 1916 Vol. 62 N. 4

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
flUJIC TIRADE
VOL. LXII. No. 4 Published Every Saturday by Estate of Edward Lyman Bill at 373 Fourth Ave., New York, Jan. 22, 1916
SIXG
$%O°PER S YEA
YEAR
How Dealers' Co-operation Can Reduce Piano Costs,
Early and Systematic Ordering on the Part of Piano Merchants Will Minimize the .
Manufacturers' Overhead Expenses, Thereby Offsetting the Increasing Cost of Materials.
URING the past few months there has been a general discus-
sion relative to the necessity of increasing the wholesale
prices of pianos which has served to impress upon the great
majority of dealers the fact that piano manufacturers are facing
conditions which have not heretofore existed in the piano industry.
The revival of prosperity, bringing with it a country-wide
demand for pianos, has made it necessary for manufacturers to
scour the country for adequate and sufficient supplies of all varie-
ties. When this source of supply is finally located there is in-
variably an increase in the price asked for the article or material.
The increase varies with the individual article, and in many
instances the most recent quotations are ioo per cent, higher than
those previously given. Detailed figures as to these increasd
prices and the alarming shortage of piano supplies have appeared
in recent issues of The Review, and each succeeding week brings
another advance in some important article entering into the con-
struction of the piano and player-piano.
The dealers are taking cognizance of this situation, and many
have expressed a desire to co-operate with the manufacturers in
every practical way to keep the prices at their present basis, or if
that is not possible, to make the increase in price as small as con-
ditions will permit.
Several of the leading manufacturers have already announced
an advance in the wholesale prices of their pianos, admitting their
inability to manufacture a piano commensurate with the prestige
of their product at the prices which have been in vogue the past
few years. On the other hand, a number of manufacturers have
reduced overhead expenses in certain directions or postponed neces-
sary improvements in their plants in the hope of avoiding an increase
in prices, but this is only a makeshift and cannot long continue.
A phase of the increased price situation which so far has not
been discussed, but which is along the lines of efficiency in factory
production, has been brought to the attention of The Review by
one of our leading manufacturers, who said:
"A proper co-operation between the manufacturers and dealers
would go far to minimize the increasing of wholesale piano prices
which at the present time is an absolute necessity in the trade.
This co-operation may, in a measure, surmount the tremendous
advance in raw materials, supplies, etc., which have become so
general in the past few months—provided, of course, there is real
co-operation on the part of the dealer.
"It should be realized at the very start of any discussion of
this situation that the piano manufacturer works with the same
overhead charge if his factory is running at capacity or if it is
running on a 75 per cent, basis. Rent, heat, light, labor and gen-
eral expenditures are practically the same in either case.
"It therefore seems logical to assume that if the manufac-
turer is provided with sufficient orders to keep his factory busy
or on a normal production basis the year round, his overhead
charges will be placed at a level which will permit of his making
a sufficient saving to balance the increased costs of supplies.
"In other words, the manufacturer who is equipped to produce
3,000 pianos annually can do so with practically the same over-
h,eac| charges as are entailecj in a production, oj 2,OQO pianos, The
D
reduction of his overhead expenses will enable him to make a
pro rata reduction on each piano manufactured, which saving will
serve to balance his increased manufacturing costs as to supplies,
materials, etc., and remove the necessity of advancing wholesale
prices. This can only be accomplished, however, if the dealers will
make every effort to increase their business the coming year along
safe, practical lines and will place their orders with the manufac-
turers regularly and consistently.
"During the past few years there has been a tendency on the
part of the average dealer to live from 'hand to mouth,' and order
instruments only when absolutely imperative. As a result, when
conditions in his particular city or section enjoyed the slightest
boom or wave of prosperity, his stock was in no shape to present
to his patrons and orders by telegraph or special delivery were
despatched to the manufacturers. This method has hardly assisted
the manufacturer in reducing his overhead charges; on the con-
trary, it has materially augmented them. While waiting for the
dealer to place his orders his overhead charges continued, although
he was not shipping the instruments which these charges warranted.
"With the start of the new year, however, conditions should
be radically changed. There is now no necessity for the dealer
to order a piano as a customer purchases one, as the country is
enjoying an era of commercial stability which is practically as-
sured for a long time to come. Let the dealer place his orders
along steady, co-operative lines, and the manufacturer will not be
obliged to advance his wholesale prices this year as.extensively as
he otherwise would."
The views above presented are certainly worthy the attention
of piano dealers .throughout the country. There has been in the
past a woeful lack of consideration of the interests of manufac-
turers on the part of some dealers. It is well known that pianos
cannot be made over night—that it takes a long period to turn out
instruments that are absolutely satisfactory to both seller and
buyer, and yet too many merchants procrastinate in ordering stock.
In recent times orders have been placed with the "rush" in-
struction attached. Now, this is not at all necessary this year,
for dealers can see sufficiently far ahead in a business way to
approximate the number of pianos and players which they can
sell, and if they get in touch with the manufacturers and place
their orders so that the factories can be kept going to the limit,
turning out pianos at the minimum of expense, there will be a
saving effected that will be very considerable not only for the
manufacturers, but for the piano merchants.
No piano manufacturer to-day can avoid charging more for
pianos in view of increasing costs, but he can keep these costs down
to a minimum by keeping his plant so continuously busy that the
overhead charges are minimized and in this way the piano merchant:
benefits in the matter of prices.
This is a subject that might be taken up with profit by the
National Piano Merchants' Association at its executive meeting
next month, to the end that members be urged to co-operate, with
manufacturers in keeping the cost of manufacturing as lp,w as pos-
sible. It is a move along the true lines of efficiency ^nd for th,$
advantage of both manufacturer and dealer.
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
REVIEW
PUBLISHED BY THE ESTATE OF EDWARD LYMAN BILL
(C. L. BILL, Executrix.)
J. B. SPILLANE, Editor
J. RAYMOND BILL, Associate Editor
Business Manager
AUGUST J. TIMPE
Executive and Reportorial Staff:
I>. BKFTTAIN WILSON,
A. J. NICKLIN,
CARLKTON CHACK,
W M . 15. W H I T E ,
BOSTON OFFICES I
JOHN H WILSON 324 Washington St
J
Telephone, Main 6950
E
*
L. M. ROBINSON,
WILSON D. BUSH,
-
P
20
CLAD HENDERSON,
L. E. BOWERS.
CHICAGO OFFICE:
- V A N HARLINGEN, Consumers' Building,
So. State Street. Telephone, Wabash 5774.
HENRY S. KINGWILL,, Associate.
LONDON, ENGLAND: 1 Gresham Buildings, Basinghall St., E. C.
NEWS S E R V I C E IS SUPPLIED W E E K L Y BY OUR CORRESPONDENTS
LOCATED IN T H E LEADING CITIES THROUGHOUT AMERICA.
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, $5.00.
ADVERTISEMENTS, $3.50 per inch, single column, per insertion. On quarterly or
yearly contracts, a special discount is allowed. Advertising pages $110.00.
REMITTANCES, in other than currency forms, should be made payable to Edward
Lyman Bill.
PIjIVPP Pl2inA UnA
Departments conducted by an expert wherein all ques-
l lajCl "I lallU ami
t j o n s O f a technical nature relating to the tuning, regu-
Tpptinipnl n o n a r f m o n f c
lating and repairing of pianos and player-pianos are
I C l I l l l l l d l UKpaiUlKUVS.
d e a ] t w i t h > w j n b e 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, 1002
Diploma
Pan-American Exposition, 1901 Gold Medal
St. Louis Exposition, 1904
Gold Medal. .Lewis-Clark Exposition, 1905.
£ONO DISTANCE TELEPHONES—NUMBERS 5982—5983 MADISON SQ.
Connecting 1 all Departments
Cable addre»: "Elbill, New York."
NEW Y O R K ,
JANUARY
2 2 , 1916.
EDITORIAL
In assuming, as associate editor, a part of the
hallowed chair of my late father, I desire only to
emphasize, with all fitting dignity, that The Music Trade
Review will continue to be dominated by the spirit of the
late Colonel Edward Lyman Bill. Indeed, it cannot be
otherwise—so indelibly has my father left his individual
stamp of "white" journalism upon every one and every-
thing connected with this publication.
The present staff has been shaped into master form
by the hand of the late Colonel Bill. The after outcome
of this can be nothing short of a reflection of the editor
who has so recently been called into God's home—and
through the earnest efforts of the staff it will be a mighty
true reflection.

Adherence to clean principles of journalism is what
enabled my father to mold the present efficient staff, and
adherence by that same staff to all that is straightforward
in trade journalism is the thing that cannot but maintain
The Review as a valuable constructive asset to the music
trade—as the enduring monument to the fair-minded
editor who has left us.
J. RAYMOND BILL.
T
HERE is a noticeable tendency upon the part of some to at-
tribute the increasing prosperity which we are now enjoying
to the European war. True, the vast amount of foreign gold which
has poured into this country, together with the establishment of the
dollar instead of the pound sterling as the standard of exchange,
has had a direct and beneficial influence on the finances of the coun-
try. War orders have also provided occupation for a vast number
of workers, reducing to a very great degree the percentage of un-
employed. But while these war-bred conditions may have a bene-
ficial result of a more or less permanent nature, it cannot be denied
that the awful economic waste caused by this present conflict will
have a direct influence upon the status of every country in the
civilized world, and America cannot escape from that influence.
A peculiar, yet nevertheless pertinent illustration of the preju-
dicial influence of the war upon American industry is shown in an
account, published in The Review last week, of the misfortunes
which befell a shipment of piano wire, sent from Bremen, which was
consigned to the American Piano Supply Co. The shipment, amount-
ing to 40,000 pounds of assorted wire, left Germany in March, 1915*
on the "Ogeechee,'' the last American steamer which sailed from
Bremen. A British cruiser halted the steamer, declared her entire
cargo contraband, forced her to unload at Sharpness, and then per-
mitted the American boat to proceed.
The items composing the cargo were brought up from time to
time before the British Prize Court, and the music wire in question
was ordered released officially last summer. Then followed the un-
winding of a tangled skein of red tape, accomplished only by the
filing of special papers, showing the manufacturer, the nature, and
the purchaser of the goods, the issuing of bonds and guarantees that
the goods would not be used for war purposes, etc., and the delay
caused by these official requirements resulted in the non-arrival of
the wire at this port until last week.
The American Piano Supply Co. is now setting a force of in-
spectors at work, and they will examine the entire shipment to make
sure that the wire is perfect in every respect, and is in as good
condition as it was when it left Germany.
The direct and unavoidable toll which the American Piano
Supply Co. has paid because of the war is threefold. It has suf-
fered a ten months' delay in receiving goods which were presum-
ably needed for immediate use. The various charges which have
been incurred in getting the goods out of the British Prize Court
and into an American port, have amounted to between eight and ten
cents per pound more than if the cargo had been shipped under the
usual conditions which existed prior to the declaration of war, an
item alone of from $3,200 to $4,000. Lastly, the length of time
during which the wire has been in storage, or in transit, combined
with the various handlings it must of necessity have had, lias made
necessary a minute inspection of the entire shipment, which will be
an added cost of no little amount.
Outside of the money paid in wages, which, of course, is never
a loss from the standpoint of comprehensive economics, the actual
cash which has been taken from the coffers of the American Piano
Supply Co. is purely and simply a direct contribution to the treasury
of Mars, a contribution which will in turn be expended in furthering
the effort to uproot and destroy the economic foundation of the
world—peace. The trouble, anxiety and commercial handicap
caused by the delay in receiving the goods cannot be measured in
dollars and cents, but it forms a contribution to the same cause.
I
N an exclusive interview published in a recent issue of The
Review, Dr. C. T. Graham-Rogers, Director of the Depart-
ment of Industrial Hygiene of the State Industrial Commission,
commented on the excellent conditions which obtain among the
workers in piano factories in New York. Especial emphasis was
laid upon the fact that the piano trade is free from occupational
diseases, and that the factories were admirable from a hygienic
as well as from a manufacturing standpoint. Dr. Graham-Rogers
holds no particular brief for the piano manufacturer. He is not
the champion of their cause, nor. indeed, of anyone's cause. He
is a highly trained authority on industrial hygiene, and his state-
ments regarding the piano industry are the result of carefully
made observations and coldly scientific research and investigation
among the piano factories in this city and State. Unbiased and
uncolored by interest or sentiment, the statements of this eminent
physician must be accepted as authoritative. Tt is a source of
exceedingly great gratification to have such a clean bill of health
given to the piano industry. It also proves that there is such a thing
as "sentiment in business," and that pianos—which are capable of
interpreting the highest sentiments and emotions, are being con-
structed by manufacturers who try to surround their workmen with
laboring conditions which shall be conducive to work befitting the
ultimate uses of the instruments which they are creating.
HE decision handed down by the United States Circuit Court
of Appeals in the case of the Victor Talking Machine Co.
versus R. H. Macv & Co. and chronicled in last week's Review,
marks a great victory for price maintenance in the talking machine
trade. It establishes the right of a manufacturer of patented
articles to exercise full control over the merchandising of those
products. The decision will meet with the approval of talking
machine men. for it must be conceded that this industry has been
T

Download Page 3: PDF File | Image

Download Page 4 PDF File | Image

Future scanning projects are planned by the International Arcade Museum Library (IAML).

Pro Tip: You can flip pages on the issue easily by using the left and right arrow keys on your keyboard.