Music Trade Review

Issue: 1921 Vol. 73 N. 3

wm\
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
VOL. LXX1II. No. 3
Published Every Saturday by Edward Lyman BUI, Inc., at 373 4th Ave., New York.
July 16, 1921
8ln l
* £.£ > ?!S
International Trade Problems
A
'UDY of the report of the annual convention of the British Music Industries, held recently in Ramsgate,
which report appeared in the last issue of The Review, is particularly interesting to those engaged in
the work of studying and endeavoring to find solutions for trade problems in this country, for it is
clearly shown that British manufacturers and music merchants have problems that are distinctly
similar to those facing the industry in this country.
Perhaps the most interesting proposal made throughout the convention was that for the establishment of
a general trade agreement calculated to eliminate a number of the more flagrant evils. Although it would be
impossible under existing laws to consider seriously a similar agreement in this country, there may be found in
the suggestions offered some ideas that may be developed by the American music trade along different lines.
The ten clauses of the agreement, the whole of which was adopted to be submitted to member associations
for ratification, were:
1. Any scheme for raising revenue for the Federation which has been the subject of agreement between
a particular Association and the Federation to be duly carried out.
2. Publishers and manufacturers to definitely fix retail prices for all their goods.
3. Manufacturers, publishers and retailers to sell to the public only at those fixed prices.
4. Every sale to be a complete transaction in itself without being part of any other transaction;
no inducement to purchase goods to be allowed—such, for instance, as throwing in a music stool, giving free
lessons, etc.
5. Second-hand goods to be accepted in part payment for other goods or otherwise bought or dealt in
only at the fair market price for the goods, less the usual trade profit.
6.. The commission payable to professional musicians or teachers for the introduction of business to be
fixed at the maximum of 5 per cent, and to be paid only when the professional musician or teacher is genuinely
requested to advise on the selection of an instrument.
7. The amount of discount given to professional musicians and teachers on the purchase or sale of sheet
music to be fixed by agreement between the Associations concerned, and the circumstances under which discounts
are payable to be defined, so as to provide that the terms shall be identical, whether offered by a publisher direct
or by a dealer.
8. To define clearly who is eligible to receive wholesale terms. Everyone else to be on retail terms.
9. Prices for tuning, repairing and maintaining instruments to be in accordance with the rate agreed to
by the trade Association or branch as being the minimum rate for the district.
10. The use of the Federation seal to be an intimation that the user is a subscriber to the agreement.
A study of the various clauses indicates that the "throw-in," the "trade-in" and the commission problems
are as bothersome to the British trade as they are to the trade in this country, although we have through force
of argument reduced such evils to a minimum.
There were a number of other matters taken tu> at the British Music Industries Convention that might
prove equally pertinent for consideration at trade conventions on this side of the pond. The .question of the
maintenance of retail branches by manufacturers, the establishment of sole agencies, and the development of the
hire-purchase or instalment business, and the evils growing out of all these, supplied material for lengthy
discussions. It was found that the direct retail branch worked to the disadvantage of the manufacturers in the
eyes of independent dealers, that sole agencies gave ma"ny dealers too great an advantage in rich territories, and
that the return to the practice of granting long terms was likely to prove ruinous to the industry. How very
similar to the problems discussed at our recent conventions are these of the English trade!
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
RE™
;PUBLISHED BY EDWARD LYMAN BILL, Inc.
President and Treasurer, C. L. Bill, 373 Fourth Ave., New York; Vice-President,
T. B. Spillane, 373 Fourth Ave., New York; Second Vice-President, Raymond Bill, 375
Fourth Ave., New York; Secretary, Edward Lyman Bill, 373 Fourth Ave., New York;
Assistant Treasurer, Wm. A. Low.
J. B. SPILLANE, Editor
RAY BILL, B. B. WILSON, BRAID WHITE, Associate Editors
WILSON D. BUSH, Managing Editor
CARLETON CHACE, Business Manager
L. E. BOWERS, Circulation Manager
Executive and Reportorlal Stall
EDWARD VAN HARUNGEN, V. D. WAL"SH, E. B. MUNCH, LEE ROBINSON, C. R. TIGHE,
EDWARD LYMAN BILL, SCOTT KINGWILL, THOS. W. BRESNAHAN, A. J. NICKLIN.
WESTERN DIVISION:
BOSTON OFFICE:
Republic Bldg., 209 So. State St., Chicago.
JOHN H. WILSON, 324 Washington St.
Telephone, Wabash 5242-5243.
Telephone, Main 6950.
LONDON, ENGLAND: 1 Gresham Buildings, Basinghall St., D. C.
NEWS SERVICE IS SUPPLIED WEEKLY BY OUR CORRESPONDENTS
LOCATED IN THE LEADING CITIES THROUGHOUT AMERICA.
Published Every Saturday at 373 Fourth Avenue, New York
Entered as second-class matter September 10, 1892, at the post office at New York, N. Y..
under the Act of March 3, 1879.
SUBSCRIPTION (including postage), United States and Mexico, $2.00 per year;
Canada, $3.50; all other countries, $5.00.
ADVERTISEMENTS, $6.00 per inch, single column, per insertion. On quarterly or
yearly contracts a special discount is allowed. Advertising pages, $150.
REMITTANCES, in other than currency forms, should be made payable to Edward
Lyman Bill, Inc.
Departments conducted by an expert wherein all ques-
PI aval* Plan
anil
rljljcF'I
lallU A allU
tions of a technical nature relating to the tuning,
regulating and repairing of pianos and player-pianos
f
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.
Exposition Honors Won by The Review
Grand Prix
Paris Exposition, 1900 Silver Medal
Charleston Exposition, 1902
Diploma
Pan-American Exposition, 1901 Gold Medal
St. Louis Exposition, 1904
Gold Medal—Lewis-Clark Exposition, 1905
LONG DISTANCE TELEPHONES—NUMBERS 5982—5883 MADISON SQ.
Connecting all Departments
Cable Address: "Elblll, New York"
Vol. LXX1II
NEW YORK, JULY 16, 1921
No. 3
R
THE ASSOCIATION IDEA IS GROWING
T
HE development of the music trade association idea on the
Pacific Coast, which has resulted in the organization of new
associations in Portland, Ore., and other cities, together with
renewed activities of existing trade bodies in San Francisco, Los
1921
Angeles and other cities, is a matter that should prove gratifying to
the officials of the National Association, for it will undoubtedly mean
the growth of the association spirit in the Far West.
In the East and Middle West there have for a number of years
existed local associations of greater or less strength, but up to the
past couple of years only certain individuals of the trade west of
the Rockies have shown any activity in association circles. As it is
believed that the development of local organizations tends to make
for the strength of the national bodies, the spreading of the local
association idea from coast to coast should prove a distinct factor
in solidifying the industry.
KEEPING UP EFFICIENCY STANDARDS
I
T is a well-established business maxim that when business falls 20
per cent sales efforts should increase 50 per cent. That is a
very good policy as far as it goes, but, like so many other ideas,
it should be amplified. If a man has the power to increase his efforts
50 per cent, then he has not been doing the business he should have
done when times were more nearly normal. It stands to reason
that there must be something wrong somewhere if a sales staff can
suddenly do 50 per cent more work simply because business happens
to be dull.. If that increase in efficiency were put into effect when
business was normal the profits of the firm would be great enough
to tide over the period of depression. The merchant who allows
his sales force to give him only half the service which it is
capable of is losing money every day that this condition exists.
At the present time, with the demand for real salesmanship
in the music trades, merchants, as a general rule, have increased
their efficiency to heights unheard of a few months ago when busi-
ness came to the store in such quantity that sales effort was of
secondary importance. They have really reached their stride and
have noted the satisfactory results which have rewarded their aggres-
sive policies. The merchant who is desirous of expansion and
worth-while profits will continue to demand the same standard of
efficiency when conditions return to a normal basis. He will demand
that his salesmen be salesmen and not merely order takers. Thus
will be avoided a rusty organization should business again face
critical times.
THE COMPULSORY PATENT LICENSE
WHOLESALE VS. RETAIL PRICES
ECENTLY there appeared in one of the trade journals of the
music industry an advertisement of a certain piano manufac-
turer which included a side by side listing of the wholesale and
retail prices of instruments made by this particular manufacturer.
The Review has consistently opposed the publication of whole-
sale prices, and our reason for holding such a viewpoint must be
obvious to all who have considered the question thoroughly. The
difference between the wholesale and retail price in the piano field
is such that the trade cannot afford to let a direct comparison of
the two slip into untoward hands.
We know, from specific observation, the prospective buyer of
a piano uses such data to beat down the prices set by the retail piano
merchant and to brand the retail piano merchant as a profiteer.
Retailers have used such data in vying with each other. Comparisons
of this kind have also been used to the disadvantage of the retail
piano merchant by mail-order houses selling musical instruments.
Of course, everyone familiar with the overhead expense of
retail piano merchants knows that, while the gross margin of profit
appears large, the net profit is in fact never more than nominal. It
is also a business maxim that where turnover is slow the retailer's
working margin must be large. But to attempt to explain matters
of this kind to a piano prospect is extremely difficult, and to expect
a competing mail-order house to show why its cost of selling is Qn
a par with that of the retail dealer is expecting rather too much.
Hence, we believe it the best policy to keep a comparison of
the wholesale and retail prices in the piano field out of print, if
only for the unfair practices made possible if such data are placed
in the hands of the unscrupulous trade member.
JULY 1.6,
T
H E bill introduced recently into the Senate by Senator Stanley,
to amend the patent laws with a view to making it compulsory
for the foreign owner of an American patent to put his invention
into actual operation and produce the article in reasonable quantities
in the United States within two years from the date of issue of the
patent, is meeting with considerable opposition from manufacturers
and others who see in the move an attempt to interfere with the
principle of patent monopoly maintained in this country.
According to the bill, if the foreign patent holder fails to manu-
facture, the patent becomes subject to compulsory licenses on which
royalties must be paid according to a fixed schedule, ranging from
10 per cent of the manufacturing costs for the first $100,000 worth
to 1 per cent on all amounts in excess of $800,000. It is the feeling
of those who have looked into the bill thoroughly that, although the
measure might be calculated to stimulate new industries here to a
certain degree, it will really prove an entering wedge to disrupt the
present patent system of the country and prove a boomerang. It is
insisted that similar patent laws adopted in other countries have in
every instance failed to accomplish the result anticipated.
RECOGNITION FOR THE TRADE PRESS
H
ERBERT HOOVER, as Secretary of Commerce, has recently
asked the business publication editors of America to assist him
in obtaining a survey of the general status of standardization in the
varied industries, and at the same time to offer him the suggestions
of expert editors as to the possibility of extending this standardiza-
tion in certain lines for the benefit of national industry and commerce.
The recognition which Mr. Hoover has thereby extended to the
business papers of the country is highly significant of the authentic
way in which the modern trade journal is regarded by the Federal
Government, as well as by this eminent member of the President's
Cabinet. The Review, as a member of the National Conference of
Business Paper Editors, is gladly, and' with a certain measure of
pride, responding to this and other calls from Mr. Hoover.

Download Page 3: PDF File | Image

Download Page 4 PDF File | Image

Future scanning projects are planned by the International Arcade Museum Library (IAML).

Pro Tip: You can flip pages on the issue easily by using the left and right arrow keys on your keyboard.