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JUNE 5, 1920
THE MUSIC TRADE REVIEW
Why Player Action Prices Are Higher
A. W. Johnston, Vice-president of the Standard Pneumatic Action Co., Tells How Costs of All Materials Entering Into the
Construction of Player Actions Have Advanced and Outlines Some of the Obstacles Which the
Player Action Manufacturer Must Overcome at the Present Time
The Review has taken up in the last few weeks
the increase in the cost of materials which enter
into the construction of piano cases, piano ac-
tions, as well as costs of raw materials which are
used in making up the hardware and those of
finishing materials. In conducting the investi-
gation The Review representative next turned
his thoughts to the player action. Considerable
has been printed about some of the materials
used in the construction of this instrument dur-
ing this series of articles, but in addition there
are many phases of the player action business
which are of vital interest to the trade at large
in so far as the increase in cost of player ac-
tions is concerned.
On account of this, The Review representa-
tive called the attention of A. W. Johnston, vice-
president of the Standard Pneumatic Action Co.,
to the criticism which has been manifested
throughout the trade owing to the high prices
of pianos and player-pianos, and in answer to
some of this criticism he stated: "Advancing
costs is a subject paramount in all our minds
at the present time, for. the reason that we are
getting what appears to be a high price on a
comparison basis, but if our house is a criterion
to go by there is not any one of us making the
money that we believe we are entitled to bY a
long shot. We wish we could make the money
we did in pre-war years.
"We feel ourselves that there has been
profiteering by certain concerns who sell ma-
terials, some of them basic—for example, lum-
ber—but it is a condition over which we per-
sonally have had no control, and even on this
score we must speak in the highest terms of
those who have been selling us. The greatest
percentage of the lumber we use comes from
a section of the country where they have had
practically eighteen months' rain.
However,
they have kept the trade going, due to some
wide-awake concerns who have used tractors
v\here oxen, etc., could not navigate at all.
200 Per Cent Lumber Increase in a Year
"We have been compelled to pay high prices
for materials which go into the construction of
our actions, but we have given the trade in
every instance all the benefit that our sources
of supply have given us. If this had not been
the case, the selling price of the player action
would be much higher. Even with all the ad-
vantages we have received, lumber is averaging
us 100 per cent higher in the first five months
in 1920 than it did in the last six months in
1919, and during the last six months of this
year we will be compelled to pay 100 per cent
above the present average. For instance, lum-
ber that cost us $52 per thousand in 1917 is now
costing us between $210 and $230 per thousand,
and as we are compelled to go into the market
again at this time we are receiving quotations
of from $250 to $300 per thousand. Substitution
has proved to be of no value, for when we at-
tempt to find a substitute it proves to be at
the same or even a higher price, but we must
have lumber.
"As you know, we use a tremendous quantity
of skins in producing-the actions. This year
we will use the skins of 15,000 calves and 80,000
sheep. As these skins must be what are known
as 'selects,' it means probably twice as many
animals have to be killed in order to keep us
supplied.
Skin Prices Four Times as High
"A few years ago we were paying $12 a dozen
for one particular finish of sheep skin which we
'
FOR TONE, BEAUTY
AND LASTING
>a
ACCOMPLISHMENT
buy freely. To-day we are paying $36, and in
order to meet the emergency had to place an
order the other day for 600 dozen at $48 per
dozen net, with no cash discount. The average
price, however, of skins is well over $36, with
approximately 50 per cent waste.
"We believe that we are the largest users of
rubber in the world, outside of the automobile
industry, and while rubber in itself has not been
a factor in advancing costs, as near as we can
learn, the price of cotton fabrics which are of
the highest weave, grade and thickness, has
gone sky high. As this is a commodity that
the daily papers all over the country are talking
about, we do not feel it necessary to go into
details.. But the increase in price has been
approximately 200 per cent.
springs in a year. A ten cent advance in the
price means $30,000 extra, or in the neighbor-
hood of $1 per action.
"We have on order since last July 35,000
springs from a large manufacturer and 50,000 on
a December, 1919, order. You will see from
these dates that we have not been getting the
goods which are about 25 per cent of our needs
and we have been scouring the market all the
while for the reason that the action is not any
Rood without a spring. Our sources of supply
have done everything in their power to serve us,
we believe, but the steel strike and other troubles
which you and 1 are acquainted with have handi-
capped them. We must admit their price is
fair and if we could get the springs it would
help us greatly.
Hardware Increase Averages 60 Per Cent
"I should say hardware has advanced on an
average, in so far as our costs are concerned,
about 60 per cent. Our list of hardware in-
cludes German silver, brass, cold rolled steel
of the finest grade and of minute construction.
We have some items which have advanced 500
per cent, but to be fair we figure that the
average increase in cost is 60 per cent up to
date. During the last six months we have never
known what the price will be until the goods
are delivered to us. While we are covered for
materials, we will have to pay the price in ef-
fect at the time of shipment. This is the first
time in our history that we have ever been com-
pelled to do this.
"You will readily see we have been compelled
to go to the outside market and buy premium
stock and deal with smaller manufacturers whose
overhead is greater and who have to buy steel
at a greater price.
"Here is an experience we had a few days ago.
We sent a representative to Cleveland, having
heard that we might possibly be able to get
springs there, and on an order for 10,000 to 20,-
000 springs we were quoted a price of 46 cents
net for each spring. When you consider that
we used to pay from six cents to seven cents
for these springs you will see it is about 600
per cent to 800 per cent advance. If we had to
place all of our orders on this basis it would
mean an extra cost to us of $120,000 on the
spring item alone, and on an output of 40,000
actions $3 an action. Of course we could not
afford this. But on a basis of a 15 cent price
there is an advance of $30,000. It is the small
things that count and this is only one item of
probably 250 different parts in the metal line
alone that we use.
"Although we use 350,000 pieces of bellows
stock during the year and buy in large quan-
tit'es, the price has advanced about 200 per cent.
The other items about which you have published
numerous articles and prices, which are used
in the construction of pianos, such as varnish,
gums, oil, glue, etc., are also used by us, and
"Take for instance screw stock. We will use
we naturally have to pay the same advance in
in this plant 350,000 gross of screws. The
price as does everybody else.
probable advance will be 250 to 300 per cent, and
Increased Cost of Labor
for a product that is not as good to-day as it
"The last item, but by no means least, is labor.
was in times gone by. Another way of explain-
We believe we have one of the most efficient
ing this point is that in the year 1916 we spent
and loyal organizations in the United States.
$30,000 for screws, whereas in 1919 we were
Results in all crises have proven this. However,
compelled to pay $69,000, and please remember
it has been necessary for us to advance wages
that these screws in 1919 were booked on a 1918
150 per cent, not taking into consideration the
market. From this information you will readily
curtailment of four and one-half hours per week.
see that the price has advanced from 250 to 300
In other words they now work forty-nine and
per cent on screws. However, in our case the
one-half hours as against fifty-four hours a few
years ago. This is not figuring in also the pro- advance has been only 100 per cent and we have
given the trade the benefit."
duction bonuses which will amount to not less
than $100,000 for the current year.
"Overhead is another item that is amazing,
and maintenance cost was $31,000 additional in
1919 as against 1918, which shows very plainly
what the mechanic is getting. I can assure you
that I have been conservative in this data, and
again wish to call to your attention the fact
that we are giving the trade the advantage of
our volume business which helps us in purchas-
ing as well as in overhead, and to bring out
this point as a matter of information we shipped
up to Saturday night of last week 15,000 actions,
comprising our output for the first five months
of the year, and this done under very serious
handicap.
Some Manufacturing Difficulties
"There are several incidents connected with
all this which show some of the tremendous
obstacles which must be overcome when buying
materials, and which have existed for the past
two or three years.
"We use approximately 300,000 flat steel
NEW LEABARJAN BOOKLET
Report of Music Supervisors' Interest in Music
Roll Cutting Machine—Part of Book Issued
by Leabarjan Mfg. Co.
The Leabarjan Mfg. Co., Hamilton, O., manu-
facturer of Leabarjan perforators, has issued a
very interesting booklet in which is contained a
report of the exhibit of the Leabarjan per-
forators at the Conference of Music Supervisors,
which took place recently at the Bellevue-Strat-
ford Hotel, Philadelphia, Pa. Leo F. Bartels,
secretary and sales manager of the company,
was present at these meetings and was assisted
by Marx E. Obendorfer, who demonstrated the
possibilities of this instrument for school work.
In the back of the booklet there is reproduced
a photograph of the Leabarjan machine actually
being used in the course of instruction in one of
the schools where it has now been installed for
some time.
P I A N O S
AND
The WERNER INDUSTRIES CO- C