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MAY
THE MUSIC TRADE
18, 1918
REVIEW
MANUFACTURERS NOT LIABLE TO PENALTY FOR TAX DELAY
READY FOR BIG MUSIC SHOW
Player-Piano and Piano Player Manufacturers Who Paid the Revenue Tax Within a Reasonable
Time in January Cannot Be Penalized for Slight Delay, Says George W. Pound
Nearly Fifty Concerns Have Arranged to Have
Exhibits at the Grand Central Palace During
the Week of June 1 to 8—Many Convention
Delegates Expected in Town That Week
The fact has come to light that Internal
Revenue collectors have been inclined to at-
tempt to recover penalties from player-piano
and piano player manufacturers for their delay
in paying taxes due on piano players under the
War Revenue Act. According to George W.
Pound, general counsel and manager of the
Music Industries Chamber of Commerce, the
Government is not entitled to collect penalties
for the ordinary delay in filing reports, inas-
much as the exact interpretation of the law was
in doubt until December 31. In connection with
this matter Mr. Pound has issued the follow-
ing statement:
"Section No. 600 (b) of the War Revenue Act
of October 3, 1917, imposed a tax of 3 per cent,
upon 'piano players,' phonographs and records.
Immediately upon the passage of this act a
question arose as to the interpretation to be
placed upon the words 'piano players.'
"It was our contention that 'piano players'
described a definite, distinct and well-known
trade article known as 'piano player.' In other
words, it was our contention that the law ap-
plied to the playing mechanism contained in a
'player-piano' and not to the instrument itself.
The department was unable to take up and de-
cide this question at once and at the request of
the department a gentleman's agreement existed
between it and myself as general counsel of the
Music Industries Chamber of Commerce of
America that our industry should make no return
under this section nor pay any tax until the
matter should be determined and a ruling given
by the department. The department was un-
able to come to a conclusion upon this matter
and no ruling was made as to what tax we should
pay until 5.28 o'clock upon the afternoon of
December 31, 1917. We immediately after this
proceeded to notify the industry of the result
and taxes were then paid in accordance there-
with.
"Under no circumstances therefore is any
member of the industry liable for any penalty
herein for failure to pay before a reasonable
time in January. Upon January 2 1 addressed
a letter of notice and instruction to the industry,
a copy of which is attached. A duplicate of
this letter was furnished to the department and,
as I understand, met with its approval.
"This decision or ruling of the department
at Washington placed a tax upon the playing
or action mechanism only and not upon the in-
strument itself.
At the request of the de-
partment we furnished it with a list of the action
makers of the United States and to whom the
department sent blanks.
"Under no circumstances is the manufacturer
ever liable for this report and tax unless he is
a manufacturer of the actual playing mechanism
or action.
"I would suggest therefore that any penalty
notice received be returned to the local collector
with a statement as above."
LIEUT. FLATO KILLED IN ACTION
MANUFACTURERS' CONVENTION PLAN
Former Piano Salesman and Graduate of Platts-
burg Makes Supreme Sacrifice on the Battle-
field—Was Member of Regular Army
Business Sessions on Monday and Tuesday, June
3 and A—Dinner on Monday Night
Word was received here on Sunday last of
the death in action on May 4 of Lieutenant
Walter Flato, Company L, Sixteenth United
States Tnfantry. Lieutenant Flato, before en-
tering the service, was a member of the sales
staff of the local warerooms of the Rudolph
Wurlitzer Co., and later was connected with the
staff of Chickering Hall in the Lord & Taylor
store, from where he went direct to Plattsburg.
He graduated from Plattsburg on August 14,
and on September 7 sailed for France, where he
was assigned immediately to the Sixteenth In-
fantry, one of the first regiments to go to
France and which has seen its full share of ac-
tion.
Lieutenant Flato is survived by a mother and
two sisters, one of them the bride of Lieutenant
M. M. Marcus, 106th Field Artillery. His
friends in the trade were quick to express to
his mother their sympathy in her bereavement
as soon as the facts regarding Lieutenant Fla-
to's death were known.
C. G. CAMPBELL^AN OFFICER
Clarence G. Campbell, president of the
Knight-Campbell Music Co., Denver, Colo., has
qualified as second lieutenant at the officers'
training camp at Camp Funston, and expects to
receive his commission shortly.
Mr. Camp-
bell is thirty-one years of age, and as president
of the Knight-Campbell Music Co. has gained a
large acquaintance in both musical and business
circles throughout the country.
Robinson Locke was registered for incor-
poration papers taken out this week for the
Toledo Institute of Music Art Co., Toledo, O.,
the amount being $15,000.
The plans for the annual convention of the
National Piano Manufacturers' Association call
for the opening of the first business session at
the Grand Central Palace on Monday morning,
June 3, with the final business session on Tues-
day. There will be a meeting of the executive
committee at the Biltmore on Sunday night to
arrange the final details. An informal dinner
for the members of the Manufacturers' Associa-
tion will be held at the New York Athletic Club
on Monday evening, at which time several spe-
cial features will be introduced for the enter-
tainment of the guests.
ISSUES REPORT ON GRIQGS CASE
Better Business Bureau of Iowa Tells of Prose-
cution for Misleading Advertising
The Better Business Bureau of Iowa, with
headquarters in Des Moines, has issued a lengthy
and altogether most interesting report regard-
ing the recent prosecution of Arthur P. Griggs,
a piano dealer of Davenport, la., on the charge
of misleading advertising.
The Better Busi-
ness Bureau of Iowa had the co-operation of
the Music Industries Better Business Bureau in
prosecuting the case, and the result was that a
fine of $10 and costs were assessed against
Griggs. It is declared to be the first case on
'record where a merchant has been successfully
prosecuted for misleading advertising without
a purchase of merchandise being negotiated first
to substantiate the case.
Andrew Meiklejohn, president of the Meikle-
john Co., of Providence, Pawtucket and Woon-
socket, R. I., has been appointed chairman of
the musical instrument committee of the Provi-
dence committee on food conservation publicity.
WINTER & CO.
PIANOS AND PLAYER-PIANOS
With close to fifty of America's leading music
concerns already scheduled to exhibit at the Na-
tional Music Show, which is to be held in Grand
Central Palace June 1 to 8, and with prospects
of several more being added to the list, there is
every indication that the exhibition will be a
record-breaker in every way.
Only two weeks remain before the opening
of the show and preparations for it are progress-
ing rapidly. The exhibitors have worked out
plans for their displays to the point where many
of them are now practically ready for installa-
t.on. Out-of-town exhibitors, realizing the de-
lays caused by railroads, have been seeking
other means of having their products at the
Palace in time for the opening and motor trucks
will be used in many instances to carry goods
overland.
Within a week or so men prominent in the
music world will begin to arrive in New York
for the show, and from the moment of their ar-
rival until their return to their home town they
will find enough to interest them every min-
ute.
Not only are they coming to attend the
show but to take part in the various confer-
ences and meetings to be held during show
week. Hotel men of New York have already
made a number of reservations for those who
are coming for the show from out-of-town.
Charles H. Green, manager of the show, an-
nounced some additional exhibitors who have
secured space. They are the Starr Piano Co.,
Kroeger Piano Co., Jacob Doll & Son, Universal
Music Co., E. Gabler & Bro., and the Emerson
Phonograph Co., Inc. Manager Green expects
to be able to announce several more exhibitors
within a few days, as a number of concerns have
asked for space and have not yet been allotted
room. Two floors of the Palace will be utilized
for the show, and every inch of space will have
a story to tell.
DEATH OF JOHN ROPELT
ROCHESTER, N. Y., May 13.—John Ropelt, a
piominent piano maker of this city, who was
vice-president of the Ropelt & Sons Piano Co.,
passed away at his home here last week, aged
sixty-seven.
He is survived by three sons,
George, Edward and Arthur Ropelt, all of whom
are expert piano men and members of the
Ropelt & Sons concern.
WEAVER OFFICIALS AT CONVENTION
The Weaver Piano Co., Inc., of York, Pa.,
report the continuance of generally good busi-
ness. M. B. Gibson, president of the company,
and Q. D. Bond, superintendent, expect to be
in New York during the first week in June to
attend the convention.
NEW STORE IN OAK PARK, ILL.
William C. Wornhoff, who for some time has
conducted the Phonograph Shop at 7512 Madi-
son street, Oak Park, 111., has rented the store
at 131 Marion street, Oak Park, and has occu-
pied the premises with a big line of Edison pho-
nographs and Columbia Grafonolas.
Pianos
will also be handled in the new quarters.
R. H. Coker has opened a music store at 222
East Fourth street, Olympia, Wash., where he
will feature the Bush & Lane pianos and players,
and the Sonora phonograph.
RUDOLF
PIANOS AND PLAYER-PIANOS
22O SOUTHERN BOULEVARD, NEW YORK