Music Trade Review

Issue: 1919 Vol. 68 N. 10

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4
THE
MUSIC
TRADE
REVIEW
PUBLISHED BY EDWARD LYMAN BILL, Inc.
President and Treasurer, C. L. Bill, 373 Fourth Ave., New York; Vice-President,
B. Spillane. 373 Fourth Aye., New York; Second Vice-President, Raymond Bill, 373
{ . 'ourth
Ave., New York; Assistant Treasurer, Wm. A. Low.
J. B. SPILLANE, Editor
RAYMOND BILL, Associate Editor
Executive and Reportorial Staff:
B. BBITTAIN WILSON, CARLETON CHACE, L. M. ROBINSON, WILSON D. BUSH, V. D. WALSH,
WM. BRAID WHITE (Technical Editor), E. B. MUNCH, A. J. NICKLIN, L. E. BOWERS
BOSTON OFFICE:
JOHN H. WILSON, 324 Washington St.
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Telephone, Main 6950.
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NEWS SERVICE IS SUPPLIED WEEKLY BY OUR CORRESPONDENTS
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under the Act of March 3, 1879.
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Departments conducted by an expert wherein all ques-
P19V01* PlsinA itnil
tions of a technical nature relating to the tuning,
^gulating and repairing of pianos and player-pianos
I W h l a l I V k C p a r l l l i e i l l S are
dealt with, will be found in another section of
this paper. We also publish a number of reliable technical works, information concerning
which will be cheerfully given upon request.
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Vol. LXVIII
NEW YORK, MARCH 8, 1919
No. 10
EDITORIAL 1
J
UST before George W. Pound, general counsel of the Music In-
dustries Chamber of Commerce, was scheduled to start a coast-
to-coast speaking tour in Pittsburgh, on Monday of this week, he
was called back to his office from Buffalo, where he had been pre-
paring for the trip, in order to take up with the authorities in Wash-
ington several problems of vital interest to the piano trade relative
to the new War Revenue law. The result is that the coast-to-coast
trip has been postponed for an indefinite period, until the Revenue
law problems can be cleared up.
It will, of course, mean keen disappointment for those piano
merchants who had planned for the visit of Mr. Pound within a
few days, and who had completed arrangements for the big meetings
and dinners for the purpose of bringing the trade together to hear
Mr. Pound talk, but it must be remembered that the trip was called
off temporarily in order that Mr. Pound might render service of
immediate necessity and of prime importance to the trade as a whole,
the story of which appears in the news columns of The Review
this week.
It is likely that Mr. Pound will not be able to start on his
speaking tour for at least a fortnight, and it will, therefore, be neces-
sary to prepare a new itinerary, which will be announced in due time,
so that new arrangements can be made by local chairmen, or arrange-
ments, already started, completed. The retailers can rest secure in
the thought that any results obtained through Mr. Pound's visit to
Washington will redound to the benefit of the trade as a whole.
ROHIBITION and its effect on the piano industry was the sub-
P
ject of a very interesting analysis in last week's Review by W. S.
Gannon, the well-known piano man, who has made a very careful
investigation of this subject from a purely economic standpoint.
He sought information from dealers in States which recently -went
'"dry," and despite the fact that business men generally are opposed
to prohibition, yet the conclusions arrived at by the majority of
dealers who made reports are substantially to the effect that only a
temporary disarrangement followed the inauguration of prohibition,
REVIEW
MARCH 8, 1919
and that the instalment business generally was greatly benefited by
the change. This article by Mr. Gannon should be carefully read by
dealers operating in so-called "wet" territory, who are solicitous as
to how business will be affected, favorably or unfavorably, by this
new and very radical amendment to the Constitution.
A prominent credit man of a Western piano manufacturing
organization, in speaking with The Review this week, stated that
so far as he had been able to secure reports and carefully review
them they indicated that where prohibition prevails credit risks, so
far as retail sales were concerned, were greatly improved. He made
the point that the abolition of the liquor traffic from any community
improves the general economic condition of the community to such
an extent that credit risks in every line of industry are materially
benefited. His reports indicate, as do Mr. Gannon's, that dealers
found that instalment obligations were met more readily and that
larger cash payments were more frequent in the States that became
"dry"' than as compared with similar conditions when the State
permitted traffic in liquor.
These facts are presented not because of any special views pro
or con on the matter of prohibition, but simply as information to the
trade on a subject which is one of paramount importance these days.
HE suggestion made by Cabinet members and others at a meet-
T
ing in Washington recently to the effect that the CGovernment
appoint a special commission empowered to study post-war condi-
tions and endeavor to fix prices on materials, particularly raw
materials, that would encourage manufacturers to stock up on sup-
plies and resume production on a normal, or close to normal, basis
is worthy of deep consideration. It is believed that if such a com-
mission could accomplish the work laid out for it the result would be
the solving of many of the problems that face industry today, par-
ticularly that of unemployment, a condition which would be over-
come, it is believed, if production was brought up to a normal basis.
There is no question but that the majority of manufacturers
have, since the end of the war, gone ahead on a hand-to-mouth basis.
They have, it is true, endeavored to resume normal production, but
at the same time have tried to protect themselves from any sudden
drop in market prices by buying materials only in such quantities
as were actually needed. The result has been a feeling of uncer-
tainty that has served to hinder production materially.
There will, of course, be some question as to the advisability of
encouraging the Government to enter upon any extensive price-
fixing campaign which might, by a sudden change of conditions,
prove a burden where it was intended to act as a help to industry.
But certainly fixed prices on raw materials within limitations should
do much to stimulate manufacturers and enable them to proceed
with their work at full speed, and with the confidence that for a cer-
tain period, at least, they will be protected from any sudden loss
through dropping markets.
HAT "a well-defined attempt' is being made to create in the
T
minds of the public and of the business men of the country an
impression that "an unheard-of cessation of industry' will take place
in the near future was revealed at a joint meeting of the commit-
tee on adjustments after the war of the National Association of
Manufacturers and representatives of the State organizations of the
National Council for Industrial Defense, held at the Hotel Astor
recently, at which resolutions were adopted to the effect that the
country, on the contrary, is "'standing on the threshold of unprece-
dented business expansion," due to the depleted stocks of stores and
factories all over the United States.
The discussion which followed the passage of this resolution
revealed the optimism which prevailed not only regarding the early
return to a pre-war basis of industrial conditions, but regarding the
splendid prospects existing for the development of export trade. It
was the general opinion that the development of export trade will
naturally follow the prestige gained by the United States of America
in the markets of the world and that it is the duty of all manufac-
turers to foster and encourage such expansion of export business
as may be normally and healthfully developed. It was further
pointed out that while the present wage scale would be retained
for some time to come, it is no time to become hysterical over the
conditions, but, on the contrary, .a time for watchful, sober consid-
eration of developments as they arise, to the end that readjustments
may come about with as little disturbance as possible.
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MARCH 8, 1919
MUSIC TRADE
REVIEW
THE NEW WAR TAX AND THE PIANO TRADE
(Continued from page 3)
with which to build business. The interests are so completely interlocking that no individual in the trade can
feel that he is not under obligation to adopt business practices that will make for healthy conditions in both his
own business and the industry in general.
With new taxes, as well as labor, demanding cash in payment, the dealer not only cannot afford to stretch
his retail credit beyond the present limit, but must in most cases be prepared to shorten those credits for the
primary purpose of stabilizing his business.
Only a few years ago cash in the piano business, either in the wholesale or retail branches, was something
worthy of special comment. To-day through changed conditions it is the rule rather than the exception, and
anything but conservative credits are viewed with suspicion and distrust. Never has there been such a com-
plete reversal of form, and new developments constantly emphasize the fact that this reversal of form has been
absolutely necessary. The matter of meeting new taxes is simply an added argument.
Unprecedented Prosperity Awaits the Entire Trade
G. B. Garritson, President of the Kroeger Piano Co., Points Out the Many
Factorsi Which Will Insure Great Prosperity in Not Only the Piano Business
But in All Lines of Endeavor in This Country During the Next Five Years
C. T>. Garritson, president of the Kroeger
Piano Co., is of the firm opinion that the United
States is facing an unprecedented period of pros-
perity, that will continue without abatement for
at least five years, and which will place this
country in a dominating position, industrially,
among the nations of the world.
"In maintaining that we have at least five
years of prosperity before us," said Mr. Garrit-
son, "I am not in any sense making a prophecy,
but simply basing my calculations upon hard
facts that are fully in evidence to-day.
"We hear considerable about the manner in
which the various European countries will re-
gain their pre-war prestige in the markets of
the world, as a result of campaigns now under
way, but we have only to consider the main facts
of the situation to understand that they will be
unable to regain their prestige in the face of
American competition.
"The labor question comes first, and is all-
important, for it is in the matter of labor that
the war has brought about the greatest changes.
For the first time in history the status of labor
and the wages paid throughout the civilized
world have reached some sort of standard. Be-
fore the war American manufacturers were
handicapped because labor, which often repre-
sented as high as 75 per cent, of the total value
of the product, cost approximately 60 per cent,
more in this country than it did abroad. The
war has changed all this—the workmen of Eu-
rope have asserted themselves, and we find them
in all lines receiving wages that are almost as
large, if not fully equal to those paid in this
country.
"All this means that the American manufac-
turer, whether of pianos or any other article,
can meet foreign competition on a better than
equal basis, for the European manufacturer has
been, or will be, forced by labor costs to in-
ciease the prices of his products to a point
where they equal the cost of American goods,
and we in this country have the decided ad-
vantage of being able to employ labor-saving
machinery of which the average European as
yet knows nothing.
"Labor prices are going to be kept up in-
definitely through the simple fact that there is
a tremendous amount of reconstruction work to
be taken care of in the next few years, and, in
addition, a tremendous amount of work in tak-
ing care of the demands for peace-time products
that have developed during the war period, and
have now reached proportions where it will
require years of steady work to take care of
this existing demand, to say nothing of the nor-
mal requirements of the future.
"Regular employment at high wages means
C. B. Garritson
that the workman will possess a buying power
that is to be reckoned with in keeping the
wheels of industry increasingly active. It means
that he is going to buy many things, including
pianos, which under the old wage scale he
could only long for, and he will thus serve an
important purpose in the industrial fabric, con-
tributing to the prosperity of many lines.
"Never has there been such a need for rail-
road and building development and manufactur-
ing expansion such as exists at the present time.
We have been practically standing still commer-
cially for two years or longer, and it is going
to take a long period of intensive hard work be-
fore we can catch up.
"The standardization of wages is particularly
important from the point of view of the ex-
porter, and it is in the foreign field that the
American manufacturer is going to find his
greatest opportunity. Not only will this field
permit of the expansion of his own particular
business to meet foreign demands, but will also
act as a safety valve for his plant. It is my be-
lief that the question of overproduction will
never again affect American piano manufactur-
ers, for any surplus output will be readily ab-
sorbed by the foreign markets. The many in-
quiries being received almost daily by various
piano manufacturers for pianos for export may
be taken as an indication of the possibilities in
that direction, and it would not surprise me if
within the next couple of years we were to see
American piano exports pass the 200,000 mark
annually, for with price competition cut down
or removed American quality is bound to dom-
inate.
"We now have our own merchant marine to
carry our goods to foreign countries, and with
additional fleets now building we should never
again find ourselves in the grasp of foreign ship
owners in the handling of our export shipments.
There is hardly any doubt that the Government
will take due cognizance of the situation and
give our merchant marine, and through it our
manufacturers, the support they require. In this
field, too, it will be found that we can compete
on a far more favorable basis than before the
war, inasmuch as the European nations will
not be able to man their ships at the low wages
prevailing some years ago. Here, too, the ap-
proximate world wage standard makes itself
felt.
"As I see it, the United States is assured of
prospering, owing to several very important
facts. First, that we are acting in the role of
bankers for the world, and money is undoubtedly
power; secondly, the increase in European wage
standards gives us an even break in business
competition, and thirdly, because there is so
much work to be done right here at home that
there will be plenty to do for everyone for years
to come after things settle down and labor is
properly distributed."
For over 25 years Specialists
in high grade Piano Cases
Paterson Piano
Case Co.
PATERSON, N. J.

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