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THE MUSIC TRADE REVIEW
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
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WM. BRAID WHITE (Technical Editor), E. B. MUNCH, A. J. NICKLIN, L. E. BOWERS
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Piann anil
r i a U V allU
Departments conducted by an expert wherein all ques-
technical nature relating to the tuning, regu-
lating and repairing of pianos and player-pianos are
. d e a I t B w i t h j w i n b c 8 f o u n d ; n another section of this
paper. We also publish a number of reliable technical works, information concerning
which will be cheerfully given upon request.
t ; o n s o f a
Exposition Honors Won by The Review
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NEW
YORK,
JANUARY
2 0 , 1917
Even should good business sense fail to convince the piano
merchant of the futility of the sensational or contest style of
piano merchandising, he should at least take cognizance of the
fact that the Federal, State and even City officials are showing
a strong inclination to investigate advertising claims and state-
ments, and prosecute whenever suitable evidence is presented
to warrant that action. The case in Baltimore proves that when
the Government steps in it is not a case of bluffing. It is broadly
hinted that the Baltimore case is only the forerunner of' similar
prosecutions which will follow.
The better element of the trade, for its own protection,
should work with the authorities in stamping out questionable
forms of piano publicity and selling methods.
It is to the credit of Joseph M. Mann, one of the progressive
piano men of Baltimore, who first called the attention of the
United States authorities to the violation of the law in that city,
that these unethical practices have been given such a severe blow
through the conviction of Sprinkle and his confreres. It was due
to his initiative, and the gathering of convincing data and facts,
that the government prosecutors took charge of the situation.
Why any sane dealer adheres to the coupon or puzzle con-
test idea as a means of developing business is a mystery. While
a temporary success is achieved it is followed by a lack of con-
fidence on the part of the public in the house putting- forth this
questionable form of publicity. The people who are inveigled
into believing that they can make money by solving these puzzles
and who find on presenting their coupons that things are not
exactly as they ought to be. at once form the conclusion that tlie
piano dealers as a whole are dishonest. It is this damaging in-
fluence to the good name of the music trade, fostered by the
puzzle advertising, which The Review has for years been so
strongly opposing, an influence which is now fast disappearing,
thanks to a saner and more business-like conception of what con-
stitutes fair dealing between an advertiser and a purchaser.
T is a matter of regret, and indeed a serious loss to the business
I chairman
interests of the country that Edward N. Hurley has retired as
of the Federal Trade Commission. In his official duties
as well as his public addresses he has always manifested a keen
grasp of conditions in the business world, and his suggestions
EDITORIAL
were always couched along constructive lines. It is too bad that
mor/e men of the type of Mr. Hurley could not be induced to give
NOTHER chapter in the long and increasingly energetic fight
their services to the government permanently.
being carried on in the interests of clean advertising and
A proper knowledge of costs in the manufacturing field
clean sales methods in the piano trade was closed last week with
has long been a hobby with Mr. Hurley, and during his official
the conviction of J. W. Sprinkle and other members of the Grand
connection with the Federal Trade Commission he devoted con-
Piano Co., Baltimore, on the charge made by the Federal authori-
siderable attention to the difficulty which the Commission had
ties of using the mails to defraud in conducting a piano contest.
in getting enlightening facts from business men about various
The fact that Sprinkle was sentenced to 18 months in the Atlanta
industries and especially as to costs. In an address before the
Pentitentiary indicates that the Government considers the offense
Commercial Club of Chicago the other day he pointed out as a
fact well understood among business men that the general de-
a grave one.
moralization in a large number of industries has been caused by
The falsity of the contest idea in piano selling is constantly
firms who cut prices, not knowing what their goods actually cost
being realized most forcibly by a large proportion of the trade,
to manufacture. The cost of selling, which is equally important,
by seeing just how that system works out. It was about a
is often almost wholly lost sight of—a condition which is not en-
decade ago that The Review first started its fight against this
tirely foreign to the musical trade industry. He added:
form of piano selling, and carried it on in the face of serious
opposition. Enemies were made for the paper and actual money
"The man who does not know his true costs is the man who
loss was suffered through a withdrawal of advertisers before the
prices his goods foolishly and thereby impairs the business of his
question was threshed out at the Convention in Richmond in
sound competitors at the same time that he ruins his own. Too
low price making based on guesswork or on partial cost is a men-
1910. The stand of The Review has been consistently not
ace to sound business.
against the individual who used the system of piano selling but
"The Federal Trade Commission has urged upon business men
against the principle of the contest itself.
the importance of installing adequate cost accounting systems.
It is a notable fact that strong devotees of the contest method
We have sent out to the business men of the country, both manu-
of selling years ago who had changed their systems have enjoyed
facturers and retail merchants, approximately 350,000 cost ac-
a most substantial growth through conducting their affairs along
counting pamphlets, and thousands of letters have been received
recognized ethical lines. It is noticeable, too, that concerns who
in reply commending the Commission for this work. If we re-
have persisted in sticking to the sensational or the contest
ceive the appropriation from Congress which I believe the im-
style of salesmanship have been steadily losing ground; have
seen business drop off; have been forced to close out branch portance of this work warrants, it is our purpose to divide the
country into zones and to place in each zone a number of cost
stores and to concentrate. At least one concern had become so
accounting experts, whose duty it shall be to educate business
imbued with the contest idea, and had emphasized that method
men, through their trade associations, in better methods of keep-
so strongly in public announcements, that when a change ot
front was attempted and that particular concern tried to do ing their books and working out their costs of production.
"I predict that within five years there will be very little
business on a straight basis of value given for valued received,
money loaned by any banker in the United States to any mer-
the public could not understand the new system and it proved a
chant or manufacturer who does not present a statement shejwing
failure.
A