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REVIEW
THE
VOL. LXXX. No. 5
Published Every Satirday. Edward Lyman Bill, Inc., 383 Madison Ave., New York, N.Y. Jan. 31,1925
Single Copies 10 Cents
$2.00 Per Year
Mid-Winter Meetings Held in Chicago
Directors of the Music Industries Chamber of Commerce Discuss "Bait" Advertising and Coming Conven-
tion Plans—National Piano Manufacturers' Association Makes Buying of Music Advancement
Stamps Condition of Membership—Membership Plan Discussed by the Merchants
HICAGO, January 23.—Wednesday eve-
ning and all of Thursday of this week
were given over to the mid-winter meet-
ings of the Board of Directors of the Music
Industries Chamber of Commerce and of the
executive board< of various affiliated associa-
tions with headquarters at the Hotel Blackstone.
In view of the fact that a number of matters of
general importance to the industry were sched-
uled for discussion, among them the plans for
the annual trade convention here in June, the
sessions drew a very satisfactory attendance of
piano manufacturers, retailers and supply men
from many sections of the country.
In a general way the meeting of the board
of directors of the Chamber itself was the out-
standing feature, being held in connection with
a luncheon on Thursday and lasting until late
in the afternoon. After the usual reports of
the officers had been read and accepted it was
voted to admit the National Association of Mu-
sical Instrument and Accessories Manufactur-
ers, of which |. R. Stewart, of the Harmony
Co., is president, to membership in the Cham-
ber as a division member, and the I'ianostyle
Mu-ie Co., Brooklyn,' N. Y., as an individual
member.
Calvin (i. Child, a director of the Victor Talk-
ing Machine Co., was elected a member ol the
board of directors to succeed Ralph ].. l
man, formerly with the same company.
At the invitation of the Federation of British
Music Industries, Max J. de Rochemont, at
present on a tour of the world, was appointed
the official representative of the Chamber at
the British annual trade conventions in May.
Mark P. Campbell was also authorized to act as
official representative of the Chamber ar the
British meeting.
The Chamber voted in favor of all four propo-
sitions regarding the postal "situation included
in the referendum No. 44 of the Chamber of
Commerce of the United States. The directors
also ratifi d the arrangement with T. C. Colquitt,
of Washington, to represent that body before
the Interstate Commerce Commission in oppo-
sition to the proposal of the railroads to in-
crease freight rates on phonographs with radio
installations to approximately 50 per cent more
than the existing rate on L. C. L. shipments.
The Chamber also went on record as oppos-
ing the Perkins bill which would eliminate
the compulsory license feature covering me-
chanical reproduction of music in the present
copyright act.
The report of the Trade Service Bureau of
the Chamber on "Bait" advertising in the music
C
trade was read and approved with the recom-
mendation that the Chamber take such action
as was possible to remedy the situation.
C. L. Dennis, in his report, summed up the
results of his investigation as follows:
"1. Nearly all of the abnormally low-price ad-
vertising may be considered as 'bait.' Only a
limited number of pianos are actually sold at
the unduly low prices advertised. Such low
prices, as distinguished from legitimate pop-
ular prices, misrepresent the piano industry and
cheapen its product in the eyes of the public.
The volume of low-price advertising is all out
of proportion to the number of low-priced
pianos sold. Apart from the use of low-price
advertising as 'bait,' and without reference to
its legitimacy, the growing volume of such ad-
vertising, in proportion to the advertising of
higher-priced instruments, is unwise in creating
a false idea of all piano values.
"2. The honest low-priced piano suffers a re-
stricted market because of undermined public
confidence, resulting in sales resistance and
waste of constructive selling efforts. The prod-
uct is now sold too largely on a basis of price
appeal, whereas a broader appeal of education
and appreciation should open up a great poten-
tial market for all pianos, and especially low-
priced and medium-priced players and grands
in the 50 per cent or more of American homes
not now having pianos. The education of the
public to a true understanding of honest values
of low-priced pianos would develop this market,
increase the output, reduce costs of production
and sales, and consequently reduce the actual
pices to the public.
"3. The switching sales methods now resorted
to'encourage trickiness in the retail sales organ-
ization, break down morale and store discipline,
destroy public confidence and sooner or later
reflect discredit upon the advertiser. No ad-
vertiser creditably represents the industry who
features a piano, he does not recommend and
does not intend to sell, to say nothing of con-
stantly featuring a lower grade of instrument
which he tries hard not to sell. Continuous
featuring of low prices, whether as 'bait' or not,
detracts from high-grade lines which the dealer
also carries, and cuts down the proportion of
sales of high-priced pianos which should be
maintained to increase the dollar volume of
business.
"4. The use of 'bait' price advertising is de-
moralizing to the retail trade generally, because
it d-aws others into that kind of competition.
The legitimate advertiser is discouraged from
using newspaper space for real selling copy."
He also made the following recommendations
dealing with this subject:
"1. Introduce a resolution condemning the
use of low-price advertising as 'bait,' to be
passed by the National Association of Piano
Manufacturers and the National Association of
Music Merchants and approved by the Cham-
ber.
"2. Approve a publicity campaign to educate
the trade, and where necessary the public, to
the evils of 'bait' price advertising, requesting
the co-operation of the trade press.
"3. Authorize the Better Business Bureau
upon receipt of complaints, when accompanied
by a copy of low-price advertising and the name
and date of the newspaper in which it appeared,
to proceed as follows:
"(a) Notify advertiser of the resolution and
invite him to justify the advertising by confi-
dential information as to the wholesale price
of the piano advertised, whether the advertiser
recommends and guarantees it, the quantity in
stock and on sale at the price advertised and
the number sold as advertised, if any; the name
ol the manufacturer, and the reason for quoting
a retail price not in keeping with wholesale
prices as generally known to the trade and the
retail mark-up usually required by legitimate
selling expense.
"(b) Ask manufacturer when known to con-
firm (in confidence) the wholesale price and
quantity purchased and to advise the Better
Business Bureau whether in his opinion the
retail price advertised is in keeping with his
understanding of the local conditions under
which the piano is offered, and to co-operate in
correcting any misrepresentations that may be
apparent.
"(c) Ask newspapers in which advertising ap-
pears whether they exercise censorship over
their columns and to undertake to verify the
willingness of the advertiser to sell at the price
quoted, and to refuse such advertising as is not
warranted by the conditions as they find them.
"(d) Invite competitors to advise the Better
Business Bureau and the newspapers whether
they believe the market conditions warrant the
price advertising in question; whether or not
they have knowledge of actual sales by the ad-
vertiser upon the basis advertised, and to sub-
mit any information they may have bearing
upon the honesty of the advertising in question.
"(e) Invite co-operation of all agencies
which may assist in the correction of advertis-
ing.claims which are not justified, such as the
local Better Business Bureaus where estab-
(Con tit'ucd
on f>a(/e 5)