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MAY
THE MUSIC TRADE REVIEW
22, 1920
"Nonessential" Question Reappears
Priority Rulings Covering Freight Shipments, Growing Out of Transportation Tangle, Indicate a Danger of Discrimination
Against the Music Industry Unless Prompt Action Is Taken—Committee Appointed by Chamber of Com-
merce to Act—Bankers Also Raise "Nonessential" Question When Granting Credits
The attention of the entire music industry is
urgently called to a very menacing situation
which threatens the industry by a statement is-
sued by the Music Industries Chamber of Com-
merce this week. It is pointed out that there is
evidently now under way a definite campaign
to revive the wartime distinction between "es-
sential" and alleged "nonessential" industry for
the purpose of curtailing production in the lat-
ter group, and that this plan has already pro-
duced tangible results in the request of the rail-
roads to the Interstate,Commerce Commission,
asking that body to grant priorities in trans-
portation, and if necessary, temporarily to sus-
pend the use of the railroads by some industries,
and, in what appears to be the policy of the Fed-
eral Reserve Bank, to curtail credit in certain
lines of industry.
The statement of the Chamber is as follows:
"For the past week or two there have been a
number of indications, particularly in Washing-
ton, that there is being revived the policy of
arbitrarily making a distinction between essen-
tial and alleged nonessential industries, with the
probable purpose of artificially curtailing indus-
tries in the so-called 'nonessential' class in order
particularly to release the present strain on the
transportation system of the country.
The Gravity of the Situation
"Although music cannot be considered a lux-
ury and may properly be ranked second only
to such vital articles as food and fuel, neverthe-
less it must be recognized that the present situa-
tion is a serious menace to the music industry
because definite attempts to place the music in-
dustry in the alleged nonessential class may be
expected if the policy of curtailing certain in-
dustries is adhered to.
"The policy of curtailing certain industries has
already become apparent in a definite manner.
On Saturday, May 15, the railroads made a
.request to the Interstate Commerce Commis-
sion that the emergency power granted the
Commission under the Transportation Act be
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"Admirable Quality; Acknowledged Reputation"
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PIANOS
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FACTORIES
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OFFICE
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exercised so that the present car shortage would
be relieved and specifically requested that the
railroads be authorized to discriminate between
commodities.
"Undoubtedly the shortage in freight cars is
so great and so many of the cars are tied up
at terminal points through congestion arising
from the recent strike, that at times it will be
necessary to give preference to such vital neces-
sities as food and fuel, but the danger in the
situation arises from the fact that it is very easy
to expand preference lists beyond the most vital
necessities to the detriment of other essentials.
In particular, the danger arises from the re-
quests of the railroads for authority to 'post-
pone and delay the loading and moving of other
less important commodities, including as and to
the extent it may from time to time be neces-
sary.' Such policy may very likely lead in
effect to embargoes upon alleged nonessentials.
The Attitude of the Banks
"The danger from the activities of Federal
Reserve Banks in the way of curtailing cer-
tain industries appears to be more definite. It
has been reported to the Music Industries Cham-
ber of Commerce and the Federal Reserve Bank
of Kansas City has already 'curtailed loans on
automobiles, jewelry and other luxuries'; and
it understands that there will be a meeting this
week at which at attempt will be made to in-
duce the bankers of the country to adopt the
general policy of curtailing loans to so-called
nonessential or luxury industries.
"The seriousness of this situation from the
standpoint of the music industry is second only
to that which faced it during the trying days of
the war. Recognizing this fact, the Chamber of
Commerce has already taken active measures
to protect the industry.
"An appeal will be made to the Interstate
Commerce Commission to limit any priority
preference necessary to the movement only to
those vital necessities, food and fuel, and then
only in such cases as preference is absolutely
necessary, and a protest will be made against
any policy of creating the artificial distinction
between essential and nonessential industry,
and the application of special curtailment meas-
ures against the former. It is expected also
that strong arguments will be presented to the
Federal Reserve Board against the continuance
of any arbitrary practices as that understood to
have been taken by the Federal Reserve Bank
at Kansas City.
"The Chamber is .also in active touch with
other trade associations in an attempt to awaken
them to the danger of the situation. President
Richard B. Aldcroftt, of the Chamber, has ap-
pointed from its directors the following com-
mittee, which is already active in investigating
the situation for the purpose of determining
what action the Chamber will take in the matte'r:
Richard W. Lawrence, Kohler & Campbell, New
York; Frank E. Morton, American Steel & Wire
Co., New York; E. Paul Hamilton, M. Welte &
Sons, New York; H. L. Willson, Columbia Gra-
phophone Co., New York; Frederick K. Sun-
derman, Bennett & White, New York, and E. F.
Bitner, Leo Feist, Inc., New York.
"Without question, some of the economic
facilities of the country like the railroads, are
almost at the breaking point, because they are
not capable of meeting demands which industry
is placing upon them. However, it is an unwise
policy to endeavor to relieve the situation by
the curtailment of a few lines of industry. It
would be much wiser to enforce the general
curtailment in all industries, using any particu-
lar economic facility which is being over-taxed.
For instance, when the railroads are not capable,
in a certain section, of transporting the com-
modity offered the preference should be given
only to vital necessities like food and fuel, and
all other industries should be treated alike, each
one being- allowed the same opportunity to
make its shipments. Likewise, with respect to
credit, if there is any real reason from a financial
standpoint for a curtailment of credits, all in-
dustries should be curtailed to the same extent,
and the brunt of the burden should not be placed
on a few lines of industry. If any discrimination
should be made in the type of credits to be cur-
tailed, it should be those credits obtained for
speculative purposes rather than for actual pro-
duction, irrespective of what the goods pro-
duced may be. This policy also raises the ques-
tion, 'What is essential?' which our wartime
experience showed is best answered, 'All busi-
ness is so closely connected that there are in
effect almost no "nonessentials."'
"If the policy of curtailing a few lines of in-
dustry only is carried out, the situation is full
of danger to the entire country. By such ac-
tion large groups of labor will be thrown idle.
In many'cases entire neighborhoods and towns
will be idle. Being specialized workers, they will
find difficulty in getting other employment, thus
will be bred social discontent, which the coun-
try cannot afford to risk at the present time.
Merchants and bankers, whose prosperity de-
pends upon the earning power of the mass of
workers, will, in such sections which are par-
ticularly affected, suffer to a ruinous degree.
Federal Revenue Affected
"The revenue of the Government will also be
seriously affected, as those industries which are
most likely to suffer curtailment first are the
ones which through excise taxes as well as in-
come and excess profits taxes contribute most
heavily to the Federal treasury. The industries
of the so-called nonessential group have suf-
fered worse than any others during the war.
Many are only now recovering from the effects
while not a few have yet been unable to get
back on full production. A return to the policy
of arbitrary curtailment of such industries will
dissipate their working organizations, and in
many cases, will undoubtedly result in liquida-
tion and absorption.
"Every individual interested in the music in-
dustry, from the manufacturer of supplies to
the retailer of musical instruments, should make
this his problem and should spread the idea in
every way possible in his locality, that the cur-
tailment of a few lines of industry is an un-
wise policy."
VISITORS TO AEOLIAN HALL
Among the visitors to Aeolian Hall this week
were L. G. Heindel, of Walter D. Moses & Co.,
Richmond, Va.; W. B. Lincoln, Taunton, Mass.;
Marquette A. Healy, B. H. Jefferson and L. C.
Wiswell, of Lyon & Healy, Chicago; F. G.
Johnston, of W. J. Dyer & Bro., St. Paul, Minn.
HILL & SONS
Used Pianos, Players and Grands
Wholesale—Any Quantity
Any Grade, Style or Make, All Repaired.
Rebuilt and Polished
Ready for Your Wareroom Floor
Factory and
Warcrooms
HILL'S TRIANGLE BUILDING
1365-75 Myrtle Ave.
Phone:
2279
Brooklyn, N. Y.