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THE MUSIC TRADE REVIEW
LAWRENCE MAXWELL MAKES STATEMENT REGARDING SALE
Believes That Action of Board of Directors of the Krell Piano Co. in Selling Cincinnati Property
to the Werner Industries Co. Will Result Favorably for All Concerned
CINCINNATI, (.)., September 3.—That there is
much to commend the directors of the Krell
I'iano Co. in selling the Cincinnati property to
the Werner Industries Co., is the stand taken
by Lawrence Maxwell, attorney, who issued a
statement following the suit filed by Albert
Krell and Edwin B. Pfau, asking for a re-
ceiver for the former corporation.
fn speaking of this, Mr. Maxwell, in a formal
statement, said:
"Albert Krell was president and general man-
ager at a fat salary up to February last, when
he ran the ship against the rocks and then de-
serted it. He re-elected himself as a director
of the company at the annual meeting in Feb-
ruary, but refused to qualify or serve, leaving
to new officers the difficult task of paying the
debts of the company, all of which had been
contracted by the company under his manage-
ment and that of his brother-in-law, Pfau, who
was vice-president and treasurer of the com-
pany. At the annual meeting of the stock-
holders the following resolution was adopted,
all voting in favor of it except Krell and Pfau:
" 'Resolved, Whereas it appears from the re-
ports of the auditors and officers that the com-
pany cannot carry on its business profitably
without further capital, or otherwise than at a
loss, it is the opinion of the stockholders that
the business, property and assets be sold, and
that the- board of directors be authorized to ef-
fect a sale of the business, property and assets,
or so much thereof as may be necessary to
pay the debts.'
"In pursuance of the authority thus conferred
upon the directors they finally have succeeded
in making a sale to the Werner Industries Co.
of the plant, and other property of the company,
except its accounts and bills receivable. Mr.
Krell complains that the common stockholders
were not permitted to vote at that meeting.
This action was in pursuance of the articles of
incorporation of the company, which provide
that holders of the preferred stock shall have
sole voting rights to the exclusion of the
holders of the common stock when there has
been a default in the payment of six or more
semi-annual preferred dividends.
"The company has never paid any dividends
on its preferred stock and is in default for ten.
The articles of incorporation containing the
Pianos of
Character
Smith, Barnes
and
Strohber Go.
Established 1884
FACTORIES
GEN. OFFICE
Chicago, 111.
1872 Clybourn Ave.
N. Milwaukee, Wis. CHICAGO, ILL.
foregoing provision were signed by Krell and
Pfau as incorporators. I have in my possession
a letter signed by Mr. Krell in which he says
that the provision with respect to preferred
stock 'meets with my full approval.'
"The Werner Industries Co. is a corporation
organized under the laws of Ohio, with a cap-
ital of $900,000, $600,000 of which is 7 per cent,
cumulative preferred stock and $300,000 com-
mon stock. Four hundred and eighty-five thou-
sand dollars of the preferred stock and $300,000
of the common stock have been subscribed and
paid for. The company has no debts of any
kind. The Werner Industries Co. also has pur-
chased and now is operating the plant of the
Krell Auto Grand Piano Co., of Connersville,
Ind.
"The president of the company is H. J. Wer-
ner, of San Francisco, who for many years has
conducted the affairs of the American Photo
Player Co., of which he is president, and which
does a business of approximately $2,000,000 a
year.
"The result of the transaction is to save for
Cincinnati an important enterprise which will
employ a large number of men and be one of
its representative industries. It will continue
the piano and Victrola departments of the John
Shillito Co., of Cincinnati, and the Jones Store
Co., of Kansas City, Mo."
Mrs. Albert Krell, wife of the former presi-
dent of the Krell Piano Co., Thursday afternoon
filed suit against Attorney Maxwell, seeking
judgment for $6,300.22, alleged to be due to her
on a transaction concerning stock of the com-
pany. This action is based on an alleged stock
transaction, the stock having originally been
held by Marie Hickenlooper.
.
WANAMAKER DEPARTMENT EXHIBITS
Has an Attractive Display of Pianos and Player-
Pianos at the Monmouth County Fair Held
in Red Bank, N. J., this Week—Geo. W.
Morgan in Charge—Excellent Program
The piano department of John Wanamaker,
New York, maintained a very attractive exhibit
of the pianos and player-pianos it handles at
the Monmouth County Fair, Red Bank, N. J.,
which opened on Monday of this week and
closed on Thursday. George W. Morgan, of
the Wanamaker sales force, was in charge of the
exhibit which attracted the attention of the great
majority of the visitors to the fair, and which
resulted in the acquisition of a valuable list of
prospects in addition to a number of direct sales.
One of the features of the Wanamaker ex-
hibit was the rendition of an excellent program
daily by Miss Edna Kellogg and Philip Ohman,
artists furnished for the occasion by the Bureau
of Entertainment of the Wanamaker store. This
musical program was enthusiastically received,
and added materially to the popularity of the
Wanamaker booth.
The instruments exhibited by the Wanamaker
department included a representative display of
Knabe, Schomacker, Emerson and Lindeman
pianos; the Angelus player-pianos and the Art-
trio and Ampico reproducing pianos. Timely
and apropriate souvenirs were distributed, which
left permanent reminders of the Angelus and
Lindeman displays.
SEEKS BANKRUPTCY DISCHARGE
John H. Vandeveer, doing business as the
Vandeveer Music Store, in Bedford, Ind., who
was adjudged bankrupt on June 25, 1917, has
applied for a discharge from bankruptcy. A hear-
ing on the petition will be held on October 5
in the Federal Court in Indianapolis.
STARR PIANOJ^a REGISTERED
The Starr Piano Co., Richmond, Ind., has reg-
istered as a corporation under the laws of New
York, E. H. Hill, of 9-11 East Thirty-seventh
street being named as representative.
"The First Touch Tells"
Christman
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and
Player-Pianos
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Made Generously
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They satisfy the
Eye—Ear—Purse
of your trade
We have been studying for
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Tone
Veneers
Finish
Durability
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You will make a place for
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thereby increase your prof-
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Inquiries Invited
Christman Piano Co.
597 E. 137th Street
New York