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JULY 10,
1920
THE
MUSIC TRADE
REVIEW
E. R. Johnson Discusses World Problems
President of the Victor Talking Machine Co., in Authoritative Address at the Annual Banquet of the National Association
of Talking Machine Jobbers Held at Atlantic City Last Week, Presents a Clear Analysis of the Economic
Problems Which Must Be Solved by the United Efforts of Industry and Government
The outstanding feature of the annual ban-
quet of the National Association of Talking Ma-
chine Jobbers, held at the close of the Atlantic
City Convention last week, was the address
made by Eldridge R. Johnson, president of the
Victor Talking Machine Co., which was sum-
marized in last week's Review, and is here print-
ed in full because of the extremely interesting
and authoritative analysis of present economic
conditions it contains.
In his introductory remarks Mr. Johnson
spoke extemporaneously, referring particularly
to what he termed the recent realization of a
long-standing ambition, namely, the acquisition
by the Victor Co. of a stock interest in the
Gramophone Co., Ltd., of England. He stated
that, as a result of this accomplishment, it was
assured that goods of Victor origin and Victor
quality would be marketed through Victor meth-
ods in all civilized countries. This, he thought,
came as neat 4 to the "ownership of the earth"
in the, spirit of Kipling's "If," later quoted, as
tie .car«d to contemplate.
• Mr. Johnson's formal address was as follows:
"During the last five years the Victor Co. has
experienced a series of most trying circum-
stances'. It almost seemed as though the good
fortune which had before smiled so consistently
upon us had deserted us, but we knew an organ-
ization jworthy of the favor of fortune must be
prepared to stand all the trials that fortune
imposes. The loyalty of Victor distributors
through that trying period was a remarkable
display of confidence and was indeed a kindly
light *midst the darkness and confusion that so
often seemed to threaten the very life of the
company.
"It was not an easy matter to save the vital
Structure of the organization built up through
^wenty-live long years when the demands of war
^Ijeajifor its most important men regardless of
tneir'special value due to their special training.
Kor was it easy to finance the business and
jhainjEain a sound credit when the turnover was
So suddenly reduced by war regulations to a
small fraction of normal.
Absorbing Increased Costs
"The Victor organization during this period
LiCcefsfully handled an increase in the cost of
kbW'-of 166 per cent and an increase in the
t jjbf materials at least as great with only
Kt| 34 per cent increase in its prices. Previ-
u$ profits were not excessive either; the Victor
I. was never a profiteer. It was not easy to
jjrjn 'the plant from the manufacture of goods for
cb it had been specially built to the manufac-
ture 6f the radically different product of war mu-
itions. It was a slow and difficult task to bring
scattered organization back and to restore
reduction to the normal output of the usual
products. Personally, I was out of the worst
pi it, being incapacitated by illness, but I knew
jthe Victor organization was equal to the great
ijnergency. At the end, they could, one and all,
rficiate the following wonderful lines of Kip-
;, doubtless familiar to you, but well worthy
jof repetition:
j*'If you can keep your head when all about you
Are losing theirs and blaming it on you,
Tf you can trust yourself when all men doubt you,
But make allowance for their doubting too;
If you can wait and not grow tired by waiting
, Or, being lied about, don't deal in lies;
Or, being hated, don't give way to hating,
And yet don't look too good or talk too wise.
"If you can dream and not make dreams your master.
If you can think and not make thoughts your aim,
If you can meet with triumph and disaster,
Anil treat those two imposters just the same;
If you can hear to hear the truth you've spoken
Twisted by knaves to make a trap for fouls.
Or see the work you gave your life to, broken,
And stoop and build it up with worn-out tools;
"If you can fill the unforgiving minute
With sixty seconds' worth of distance run
Yours is the Earth and everything that's in it,
And—what is more—you'll be a man, my
son."
How Victor Output Is Climbing
"To-day the Victor Co. is far in the lead of its
normal output, and is still climbing. Perhaps
the responsibilities of the Victor organization
can best be illustrated by a few statistics: We
own and operate 1,663,552 square feet of factory
floor space in one united plant at Camden and
have under construction 218,023 square feet
more, with land available to double this entire
plant; we have 16^4 acres of lumber piled from
twenty to fifty feet high on every available foot—
the most valuable lumber pile in the world—and
a 50 per cent extension under way; we have also
10,000 employes and could use 5,000 more. This
force is being increased as rapidly as skilled
workers can be employed and trained; we pay
out, when our people all feel like working, about
$300,000 in weekly wages, besides the monthly
salary roll, and expect to pay 50 per cent more
as soon as people can be found to take the
money; we are using 36,850,000 feet of high-
grade lumber per year and will use 50 per cent
more soon; we burn 55,000 tons of coal per year,
and are making preparations to burn 80,000 tons.
I could cover many pages with such statistics,
but this is enough to show you that we are still
going strong.
"I feel that I have said enough of the Victor
Co.'s troubles; they are largely of the past, and
I know you will expect me to say something of
the future—a most difficult task in these uncer-
tain times. The control of the Victor Co. is not
going to pass into other hands—during my life-
time. It is not going to be amalgamated with or
absorbed by a trust or any other combination.
The Victor Co. is increasing its output as rap-
idly as circumstances will permit, but Victor
goods will always be manufactured itf Victor
factories. I believe the Victor plant to be the
largest and most efficient plant in the world
devoted exclusively to the manufacture of talk-
ing machine goods. We built this plant because
experience had proven that we could not have
parts, especially cabinets of the Victor standard
of quality, made in any substantial quantity by
outside parties.
General Business Facing Grave Crisis
"If we look the situation squarely in the face,
we must see that general business is facing a
grave crisis. There would be nothing in the
situation to cause undue alarm if our Govern-
ment was alert to the danger and capable of
meeting the circumstances, which are really no
more critical than might be expected after a war
of such huge proportions. The fact is that the
fate of modern civilization is now resting largely
on the United States, and if we fail to meet the
responsibility the world will mark time for a
century.
"It is also apparent that a boundless oppor-
tunity for good has been created. The very
foundations of society and industry have been
shaken throughout the world, especially in
Europe where the true spirit of progress was
so long bound by social conservatism to such
an extent that the great mass of the people were
dangerously dissatisfied.
Now everything is
changing. The great increase in wages and
prices, though excessive in many cases, will, in
the end, if intelligently controlled, achieve a far
better distribution of wealth, and conditions for
countless millions will be improved.
Responsibility of the United States
' The United States stands fact- to face with
the greatest responsibility that any government
has ever faced since that period in history known
as the Decline of the Roman Empire, at which
time about the same situation developed. The
Roman government failed because of the ineffi-
ciency of the men entrusted with great responsi-
bilities. The cost of that government was made
excessive by incapable and dishonest politicians.
The cost of its military operations and defenses
made the maintenance of an army and navy
unpopular. Rome was ruled by a ring of grasp-
ing and unpatriotic politicians. Ancient Rome
suffered from the same trouble that is now
threatening all the great nations—the ineffi-
ciency of men in high places.
"Almost every idea that is being so skilfully
and dangerously put forth to-da'y by the various
groups of inefficient, radical politicians, who have
so successfully fooled the public for the last
twenty years, was used by those old Roman
politicians to further their foolish and dangerous
policies; the same class of dangerous and radi-
cal legislation was indulged in; the same silly
cry against wealth was raised; the same exces-
sive taxation was forced upon the industrious
and thrifty classes; the same waste by inefficient
government bureaus was permitted; the same
kind of radical talk and radical theory was used
to fool the public.
"Contrary to the accepted theory, the Romans
did not become weak and effeminate. They
were a strong, brave race of people and Roman
civilization, although it lay dormant for cen-
turies, has survived. It is the civilization of
to-day. They were always victorious in their
wars when their armies were well equipped and
trained, but frequently they were found unpre-
pared. Radical socialism and 'peace at any
price' theories are not new; these ancient people
also tried to save themselves by peace treaties
and foolish laws.
"It was the German race who eventually,
through a long series of wars in which they
were generally defeated, indirectly caused the
fall of Rome. Six years ago, after preparing for
years, their aggressive government again made
one of their war moves. It was the same old
game but played on a greater scale and now,
as ever before, the German race, though de-
feated, is a dangerous and difficult problem.
"The German military power deliberately con-
spired and prepared to destroy the British Em-
pire. A great emperor in Germany could have
averted the war, but the emperor was not great.
He was a very incompetent man in a very high
place. He intended to destroy the British Em-
pire and then the world would have been Prus-
sianized. Nothing could have checked him.
England still survives, thanks to the United
States, but it was fortunate for the United States
that England survived until America could get
ready to help her.
"The German military power is crushed. The
direct purpose of the war is accomplished, but
the war is not yet ended. Fighting which would
have been classed among the great wars five
years ago is still going on. A state of war that
is far more than a theory still exists.
Much of Europe Helpless
"Germany, Russia, Central Europe, and West-
ern Asia are to a great extent helpless and pros-
trate. The United States and the Allies must
help them to put their affairs in order and to
resume their usefulness. The world can never
be prosperous and content without them. They
are an indispensable part of civilization. We
cannot long continue prosperous unless we help
those who have lost their all in the war. A
large part of the people of Europe who are
suffering are our friends. We and our Allies
(Continued on page 9)