Music Trade Review

Issue: 1917 Vol. 64 N. 10

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUJIC TRADE
VOL. LXIV. No. 10
Published Every Saturday by Edward Lyman Bill, Inc., at 373 4th Ave., New York, March 10, 1917
8ln|
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Should Box the Compass of Costs
O
N every side changing economic conditions confront us. Systematization and organization in the indus-
trial world have replaced the slip-shod, loose methods which, in many industries, had undermined effi-
ciency in production, thus adding materially to the cost of the manufactured product.
The European war, and the increased demand made upon our manufacturing resources, have
been factors of importance in waking up our manufacturers to a fuller realization of the necessity of reorganiz-
ing their business so that they can meet competition and trade demands along modern and progressive lines.
It is pretty poor logic to meet competition by decrying it. It cannot be defeated so easily. A recognition of
11
'
-"-"ins that in these days of system and organization no man can really afford to ignore any essential
which makes for better results in the domain of manufacturing.
One of the greatest evils prevailing today in the music trade industry, as well as in many other manufactur-
ing lines, is the total neglect on the part of some manufacturers of any definite knowledge as to the cost of
doing business.
Despite the constantly increasing advance of the cost of supplies of all kinds that enter into the construc-
tion of musical instruments, pianos and players are put out today by some manufacturers at a price actually
less than the cost of manufacturing.
It is hardly believable that such an absolute ignorance of the elemental facts in connection with the achieve-
ment of success in a manufacturing business should exist, but it is regrettable to say that it does.
A manufacturer who conducts some retail stores informed The Review recently that before the holidays
there Were offered to Him, and he had purchased for his stores, absolutely new pianos at a price which, after a care-
ful examination, he estimated were sold him at less than it cost the manufacturer to produce them. He added
that the manufacturer who sold these pianos was under the impression that he was making a profit on his
instruments, because he sold a fairly large number in one order and got cash for them.
There can be no excuse for .such ignorance on the part of any piano manufacturer.
How much better it would have been had this man sat down and figured out most carefully the actual cost
of conducting his business—of what his supplies, labor and over-head cost him. He might have been alarmed
at the result of his investigation, but at least he would have known where he was at.
And this marks progress, for there is no man so helpless as the man at the helm of a business ship who is
unable to box the compass of costs. He is bound ultimately to drive the ship on financial rocks, or get stranded
on some shoal where he will need much assistance in order to float off into deeper and safer waters.
There is no use of any manufacturer conducting a business unless he does so for the purpose of making a
profit. The extent of that profit may be governed entirely by his viewpoint, but whether large or small, there
should be a profit.
Such loose tactics in the conduct of a business are bound to engulf a man who practices them unless a reform
is instituted, and instituted right away. The simple, but fundamental fact should be recognized that there is no
money in the piano business for a manufacturer unless his pianos are sold at a profit.
It seems childish to emphasize this fact, and regrettable to realize that any manufacturer would sell his
products at prices which demonstrate conclusively that he does not know what it is costing him to do business,
yet this condition exists.
At any time this policy would lead to disaster, but today, when no man can estimate with any certainty re-
garding the increase in the cost of supplies—for they are going up day after day—the policy is one that leads to
veritable business suicide.
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE
REVIEW
PUBLISHED BY EDWARD LYMAN BILL, Inc.
President, C. L. Bill, 373 Fourth Ave., New York; Vice-President, J. B. Spillane,
373 Fourth Ave., New York; Second Vice-President, J. Raymond Bill, 373 Fourth Ave.,
New York; Secretary and Treasurer, August J. Timpe, 373 Fourth Ave., New York.
J. B. SPILLANE, Editor
J. RAYMOND BILL, Associate Editor
AUGUST J. TIMPE
Business Manager
Executive and Reportorial Staff :
B. BWTTAIN WIISON, CAULETON CnACE, L- M. ROBINSON, WILSON D. BUSH, V. D. WALSH,
W M . BRAID WHITE (Technical Editor), E. B. MUNCH, A. J. NICKLIN, L. E. BOWERS
BOSTON OFFICE:
JOHN H. WILSON, 324 Washington St.
Telephone, Main 6950.
CHICAGO OFFICE
E. P. VAN HARLINCEN, Consumers' Building,
220 So. State Street. Telephone, Wabash 5774.
HENRY S. KINGWILL, Associate.
LONDON, ENGLAND: 1 Gresham Buildings. Basinghall St., D. C.
NEWS SERVICE IS Sl'PPLIED WEEKLY BY OUR CORRESPONDENTS
LOCATED IN THE LEADING CITIES THROUGHOUT AMERICA.
Published Every Saturday at 373 Fourth Avenue, New York
Entered at the New York Post Office as Second Class
Matter.
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Canada, $3.50; all other countries, $5.00.
ADVERTISEMENTS, $4.50 per jnch, single column, per insertion On quarterly or
yearly contracts a special discount is allowed. Advertising pages, $130.
REMITTANCES, in other than currency forms, should be made payable to Edward
Lyman Bill, Inc.
SttiA
Departments conducted by an expert wherein all ques-
aUU
tions of a technical nature relating to the tuning, regu-
rtonapfmontc
lating and repairing of pianos and player-pianos are
I l t p d l I l l l d l l b . d e a ] t w , t h > W1 ']] b e f o u n £ i n 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, 1902
Diploma ...Pan-American Exposition, 1901
Gold Medal
S t Louis Exposition, 1904
Gold Medal. ..Lewis-Clark Exposition, 1905
LONG DISTANCE TELEPHONES—NUMBERS 5982—5983 MADISON SQ.
Connecting all Departments
Cable address: "Elbill, New York."
NEW
YORK,
MARCH
10,
1917
EDITORIAL
N the opinion of the National City Bank of New York there
I United
is no reason to anticipate that a declaration of war by the
States would have any immediate effect upon the busi-
ness situation in this country other than that resulting from addi-
tional stimulus. In its March circular letter the bank declares
that while war is not recommended by any one who understands
its economic effects as a means of increasing the wealth of a
country, if war must come it is certain that the United States
is more fortunately situated to withstand it, and has greater re-
sources with which to prosecute it than any of the countries
which have sustained such marvelous exertions for the last two
and a half years. After commenting upon the month of suspense,
and explaining the international questions involved in connection
with the difficulties with Germany, the City Bank discusses what
would happen in the event of war, saying:
"The Government has already entered the market for equip-
ment and supplies, and is committed to great expenditures upon
the army and navy, but doubtless its orders would be increased
and expedited. The experience of other countries, and our owai
as well, shows that war makes enormous demands upon the in-
dustries, hence there would be no reason to apprehend a sudden
reaction from the present activity. The danger would be from
the other side, that is, from an over-stimulus in certain direc-
tions at the expense of normal development.
"The industries of this country are already working to ca-
pacity, and it is difficult to see how they could do more. Under
such conditions government orders would crowd private busi-
ness to the rear, create new demands for labor and materials, and
probably raise costs to a higher level. Enlistments would neces-
sarily aggravate the scarcity of labor, and the amount of business
in sight would be likely to stimulate further construction work
for the enlargement of industries. These are the inevitable eco-
nomic derangements caused by war, and in some degree we have
already been experiencing their effects."
REVIEW
PARTICULARLY interesting and important feature of
A
The Review this week is the supplement showing the por-
traits of the Officers, Committee Chairmen and the majority ot
the State Commissioners of the National Association of Piano
Merchants, over two score in all. It is these men who, under
the leadership of President John A. Turner, are charged with
the conduct of the Association business—on whose work depends
the progress of the organization. Thus far the present admin-
istration has done things; has accomplished real results, not the
least of these being the establishment of the Better Business
Bureau. Other big things are 1 planned for the future. The offi-
cers and State Commissioners are naturally men of unquestioned
standing in the trade and there is hardly a name on the list that
is not familiar to practically every man engaged in the making
or selling of pianos. The efforts of such a representative
body should serve to stimulate greatly the membership of the
Association.
W
HATEVER the eleven or twelve Senators who, by their
filibuster, embarrassed the Government and the natjon
in one of the most critical periods in its history, may think oi
the President's policy or just how deep may be their patriotism,
the members of the piano trade are coming strongly to the fore
in lining up behind the Government, whatever action it under-
takes in connection with the present crisis.
At its annual meeting last week the Cleveland Music Trade
Association sent the following telegram to President Wilson:
"Resolved, That the Cleveland Music Trade Association, assem-
bled at its annual meeting at Hotel Olmstead, assures the Presi-
dent of the United States of the full confidence in his course
during this great crisis and its readiness to aid in every manner
the maintainence of our national rights and our national honor
in that broad spirit of humanity which has ever been the great
bulwark of our noblest traditions."
The Boston Music Trade Association at its meeting or
urday night last also adopted a resolution sustaining the Gov-
ernment and the President. The resolutions proved that in the
piano trade at least patriotism is not dead.
N last week's Review our Washington correspondent called
I Senate
attention to a bill recently introduced in the United States
by Senator Pomerene, and designed especially to regulate
"itinerant vendors." This term, as used in the new bill, is de-
clared to mean any person, either principal or agent, who en-
gages in temporary and transient business, and who hires, leases,
or occupies a room, building, or other structure for the exhibition
or sale of goods at retail. It is expected that when the provisions
of this act are studied, music trade men all over the country will
sit up and take notice, for seemingly this instrument affords a
powerful weapon against the special sale artist, so long a thorn
in the side of the legitimate piano dealer.
While the bill in Congress would apply only to the District
of Columbia—for the national legislature has no authority to
encroach upon States' rights in such matters—the important point
is that a "model statute" is presented that might profitably be
copied in every State and municipality in the Union.
It was pointed out that where the measure will most benefit
the piano trade is found in the clause which prohibits any special
sale artist from advertising or representing any sale as an insur-
ance, bankrupt, insolvent, assignee's, trustee's, executor's, ad-
ministrator's, receiver's, wholesale manufacturer's, wholesale, or
closing out sale, or as a sale of goods damaged by smoke, lire,
water, or otherwise, unless he shall file with his application for a
license all the facts to prove his representations. Each "itin-
erant" is required to pay a license fee of $100 per day, and make
a deposit of $500 at the beginning of the operation, as well as
rile a statement as to the quality and value of his goods.
It is hardly necessary to say that such a law would virtually
banish all special sale artists from the territory to which it
might be applicable. Evidently the man who wants to conduct
business through other than accepted lines is going to have hard
times of it these days. There is little room, hereafter, for the
man who misleads in advertising or selling, judging from the
activity of the advertising clubs and trade associations through-
out the country.
J

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