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JULY 20, 1918
THE MUSIC TRADE REVIEW
Cleaning Up Fraudulent Advertisers
Report of the Better Business Bureau, Just Issued by Secretary C. L. Dennis, Shows That the Piano Dealer Who Uses
Fraudulent or Misleading Advertising Is Finding It Increasingly Difficult to Do Business—A Detailed
Account of What the Bureau Has Done to Stamp Out Questionable Practices
C. L. Dennis, secretary of the Better Busi- national use of the trade-in schedule adopted
ness Bureau, and also secretary of the National by the New York Piano Merchants' Association,
Association of Piano Merchants, has just issued and offered by the president of that association,
the report of the Bureau for the months of May E. Paul Hamilton, to the national association,
and June, consisting of a statement of the gen- is a big step toward standardizing prices.
Plans for strengthening the national and
eral activities of the Bureau during those
months, and a detailed report on the cases of local organizations in membership and for bet-
fraudulent and misleading advertising which ter financial support of the Music Industries
came under the notice of the Bureau during that Chamber of Commerce were made during the
convention, and were well under way before the
time. The report is as follows:
Because of the absence of your secretary from end of June.
It was decided to present reports of other
the Milwaukee office during the piano trade
meetings in New York City in June, there was branches of work of the Music Industries Cham-
no opportunity to complete the report of com- ber of Commerce through the Better Business
plaints handled during May at that time. It Bulletin. Subsequent issues will therefore con-
seemed advisable to combine the May and June tain statements by George W. Pound, counsel
reports in one issue of the Better Business Bulle- and general manager, and C. M. Tremaine, di-
tin, also to include therein certain important rector of the National Bureau for the Advance-
ment of Music.
resolutions pertaining to our work.
Closer working relationship between the vari-
The Bureau acknowledges with thanks the
ous organizations in the Music Industries Cham-
passage of the following resolution:
"Whereas, The work of the Better Business ber of Commerce were established during the
Bureau has been of a character such as to merit meetings in New York.
Direct attention was given to fifty-one cases
the greatest praise and support of this associa-
tion, and feeling that the work commenced during May and June, the greatest period of
should be continued with the greatest amount of activity in the history of the Bureau. Of these
cases, twenty-one were new ones reported dur-
effectiveness possible,
"Therefore, Be It Resolved, By the National ing May, the highest number for any one month
Association of Piano Merchants in convention to date, and twelve were new complaints re-
assembled in New York City, June 6, 1918, that ceived during June, although it was convention
this association expresses the greatest confi- month.
A marked improvement in the tone of special
dence in the work of the Better Business Bureau,
and asks for a continuation of the work along sale advertising was noted in the copies of ad-
the same effective lines, and that President Ed- vertisements forwarded to the Bureau.
The "Gyp" dealer is not figuring in the active
mund Gram, who has so efficiently worked with
the Better Business Bureau this year, be given complaints now before the Bureau, which indi-
immediate supervision of it for the coming year." cates that the changing market conditions, the
The recommendation in the annual report of "Work or Fight" order, or some such influence
the Better Business Bureau to combine the work has reduced such activities.
The coupon advertising cases before the
of organizing among piano merchants with our
vigilance work was adopted through the election United States postoffice authorities are being
of your secretary as secretary of the National pressed to the attention of the proper parties,
Association of Piano Merchants, thus combining but no definite results have been reported.
Following are reports on complaints which
the two offices to promote the interests of the
better element of the trade. The plan of or- were given attention during May and June:
ganization outlined by the retiring president, Case No. 2, Detroit, Mich.
The evidence before the United States District Attorney
Edmund 'Gram, was approved by constitutional
in an old "Purchase Coupon" case reported by a West
amendments authorizing the affiliation plan for Virginia dealer, is not believed sufficient to convict, but
city and State associations. This work will be the mail-order house using the coupon scheme has gone out
of business, and it is believed that the results of the investi-
carried on through the combined office.
gation by the post office authorities will prevent any further
Your secretary was invited to appear upon offense by the man responsible.
the vigilance program of the Associated Adver- Case No. 7, Indianapolis, Ind.
A complaint against the advertising of a big concern was
tising Clubs of the World, in convention at San
Francisco, July 7 to 11, but because of the ex- followed by an investigation wherein the advertising was
traced to its source. The copy was furnished by an aggres-
pense the invitation was not accepted. However, sive New York manufacturer, who gladly corrected the two
in order that the spirit of co-operation existing objectionable points in the campaign copy which was fur-
between this Bureau and the Associated Adver- nished to dealers throughout the country. The splendid
co-operation shown in this case proves the desirability of
tising Clubs might be strengthened, it was de- adopting
standards which the trade as a whole is glad to
cided that a paper prepared by your secretary live up to.
be presented to the vigilance workers by Byron Case No. 9, Chicago, 111.
Mauzy, of San Francisco, representing the Na- Not a single complaint in two months regarding the
advertising of T. Nordin, former mail-order "Gyp" dealer,
tional Association of Piano Merchants.
indicates that he has entirely changed his methods or dis-
Several important steps for trade betterment continued business. The last information indicated that he
taken before and during the convention were • was endeavoring to establish local retail agencies and adver-
reported. Local associations were organized tise along legitimate lines.
Case No. 10, Davenport, la.
and affiliated with the national association, and
The successful outcome of the prosecution of Arthur P.
a gain of 100 members since the campaign in- Griggs, whose advertising of a special sale promoted by S. J.
augurated by former President Gram, with the Travis of Chicago, has received favorable comment in many
assistance of the Bureau, was reported by for- qviarters. The trade papers have given it widespread pub-
licity, and dealers have been advised to get a report on this
mer Secretary Percy S. Foster. The following Case before attempting special sales of the character of this
associations were affiliated: Boston, Philadel- one. Certainly the conviction and fine for advertising of
phia, Indiana, Connecticut, Dallas, Cleveland, general mis-statements of fact, such as "Must Be Sold
Regardless of Cost or Value," establish a precedent for
Detroit, New York, Richmond, Rochester, Mil- which
the Better Business movement throughout the country
waukee, Ohio and Washington.
owes a great debt to the Iowa Vigilance Committee and its
The action approving and recommending the secretary, Frank Armstrong.
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PIANOS
Case No. 14, 8troudNl>urK, Pa.
The advertising of a transient sale of an outside firm,
which attracted unfavorable attention during the holidays,
is being given further attention. Instead of improving, the
advertising is said to have become worse, and the merchan-
dising methods of the firm are reported to be as bad as the
publicity. Different prices are said to be quoted to different
people on the same goods, and in one instance varied as
much as $150 on the same instrument If this is true, some
one is the loser in the sales that are made, and an extra
effort to prevent repetition of sales of this character will
be made.
Case No. 17, Bradford, 1'a.
Another outbreak of an old offender with ridiculous claims
of "Prices Cut 20 to 50%," illustrated by a stock cut of a
hatchet being used on price tags, is really remarkable in the
face of present conditions. A letter from a Michigan manu-
facturer to substantiate the claims is reproduced in the
advertising. "$300 Pianos Reduced to $187," etc., are ad-
vertised, with "Liberty Bonds Accepted at Full Value" and
"Railroad Fares Allowed to Out of Town Buyers," in addi-
tion.
The manufacturer has discontinued making pianos
"for the duration of the war." The "Terrific Slaughter"
of prices is the result.
Case. No. 19, Dallas, Tex.
A new complaint about the advertising of a former
offender, in connection with which steps were taken to form
the Dallas Music Trades Association, was forwarded to this
Bureau, along with a criticism of another advertiser. The
use of "Price Smashing" in headlines and two or three
rather radical claims, are subject to criticism, but on the
whole the advertising has shown a marked improvement.
The Bureau's suggestion of a Grievance Committee of the
Dallas Association to take up such matters was well taken
and may result in such a committee. The Dallas men in
the music trade show a line spirit of co-operation.
Cane No. 25, Batavla, N. Y.
The class of pianos handled by a dealer whose adver-
tising has been complained of frequently, has been reported
to the Bureau, and it seems evident that the "Factory Sales
Agency" is not for any piano of established quality, nor is
the guarantee of $100 saving substantially backed.
Cawe No. 28, Chicago, 111.
Continued advertising of a "Piano Club" in Chicago, with
an absurd claim that a piano which cost members $135 "If
Bought Through a Dealer in the Regular Way, Price Would
be Double," seems not to annoy Chicago dealers in the
least.
The prices and terms advertised by the firm are
demoralizing to the trade and obviously unfair to competi-
tors, but without co-operation in Chicago it is impracticable
to undertake to check it.
Cane No. 39, Portland, Ore.
Through cooperation of a manufacturer and the personal
acquaintanceship of a prominent member of the N. A. of
P. M., an interesting discussion has been started in a case
previously reported, of an advertiser who has had frequent
attention from the local Better Business Bureau in Portland.
This advertiser claims to be able to undersell competitors,
and his position is as follows:
"Whenever it can be shown that the cost of the local
dealer's pianos selling at $375 is more than the cost of our
pianos selling at $375 less twenty-five per cent., then we
are willing to correct our showing, but the writer's knowl-
edge of costs and careful observation of prices at which
they are retailed here prove our advertisement absolutely
correct to date and I am satisfied that you will want to
correct case No. 3°, Portland, Ore., and
advise me accordingly."
Case No. 47, El Paso, Texas
While no reports are issued by post office authorities
regarding unfinished cases, it is understood that the investi-
gation of a "Credit Voucher" coupon scheme is progressing.
No new complaints have been received of continued opera-
tions of this firm, either in El Paso or other cities where
they are understood to have stores, therefore it is likely
they have abandoned this dangerous plan of selling pianos.
Case No. 48, Minneapolis, Minn.
The advertising of a big firm, whose branch houses are
not run along ethical lines, continues to have the attention
of vigilance workers in Minneapolis and other cities. An
investigation in St. Paul (See Case No. 83) revealed facts
which caused a temporary improvement, but it is reported
that the Minneapolis branch has lapsed into the old prac-
tices.
Case No. 51, Albany, N. Y.
An investigation by the government post office authorities
continues, of operations of a firm responsible for a "Piano
Purchasing Coupon" mailed out from Chicago, to prospects
secured through a Wilson Picture Puzzle contest. Develop-
ments are being watched with interest in many quarters.
Case No. 57, Memphis, Tenn.
An "Introductory Sale" campaign, based an v ..eopy
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nished by a manufacturer, was completed in Memphis, but
ORGANS
ESTEY PIANO COMPANY NEW YORK CITY-
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