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FEBRUARY 7,
THE
1925
MUSIC TRADE
REVIEW
Minneapolis Music Merchants Take Big
Part in Hennepin Go. Memory Contest
Leading Music Houses Contribute Large Proportion of Fifty Prizes Offered to Contestants—
Starck Piano Co. Branch Moves—Foster & Waldo Report Big January
TV/I INNEAPOLIS and ST. PAUL, January 31.
*•* *• —Minneapolis music merchants are tak-
ing a leading part in the first Hennepin county
musical memory contest now in progress which
will terminate March 29. Leading music firms
are contributing a large part of the fifty valu-
able prizes offered and are lending their co-
operation to those in charge of the competition
—Henri Verbruggen, conductor of the Minne-
apolis Symphony orchestra, whose fame is even
more widespread since the Brunswick recording
of the orchestra, and Mrs. Agnes Moore Fry-
berger. The contest, although similar to con-
tests which have been conducted in other parts
of the country, bids fair to be the largest and
most significant yet attempted. Reasons for
its popularity include the facts that it is open
to everyone, is not in connection with public
school music or any one firm and is endorsed
by influential organizations, including the Y. M.
C. A., American Legion, Kiwanis, Veterans'
Bureau, as well as women's clubs. It appears to
be stimulating record sales, listening to records
being one of the popular methods of becoming
acquainted with the music. From the numbers
played at the Sunday popular concerts of the
Minneapolis Symphony Orchestra, ten will be
played at a special concert, Sunday, March 29,
at which time the audience will write down the
names of the selections with other pertinent
information in competing for the awards. Lec-
tures for the competitors are conducted Fri-
days and Saturdays at the L. S. Donaldson
store, one of the big department houses* which
specializes in Victor and Brunswick lines.
One of the important moves in piano circles
is that of the removal of the P. A. Starck Piano
Co. from its stand at Nicollet avenue and
Eighth street to the handsome new Yeates
building, Nicollet and Ninth street. The old
Starck site has been claimed by the new pur-
chasers, Browning, King & Co., who will re-
linquish their old Nicollet and Fifth street loca-
tion. V. A. Swansor, manager, says the firm
is not quite settled and is still making altera-
tions, but the beautiful show room is ready for
business. The firm moved to its new location
January 9, retaining the same selling force.
"This has been the biggest January in our
history," said Robert O. Foster, head of Foster
& Waldo, which has been: in the music business
here for forty-two years. "We have been going
along quietly for the past three years, but have
been putting out our lines in the old way and
are enjoying very wonderful sales."
Webb R. Randenbush, at the S. R. Rauden-
bush & Sons factory, reports a medium pace for
the past month. Duluth shows the best year's
business the company ever had. In St. Paul,
he said, piano sales have been rather moderate,
but phonographs have been going very well.
S. W. Raudenbush, president of the firm, with
Mrs. Raudenbush, has followed his annual cus-
tom of going South, where he is finding not only
more temperate weather but better golf. They
will remain in Los Angeles until April, having
left here January 3.
George A. Mairs, manager of the phonograph
and piano departments of W. J. Dyer ' &
Bro., says that business is excellent with very
satisfactory sales in January.
Edward R. Dyer, manager of the Metropoli-
tan Music Co., finds present business and pros-
pects both very pleasing. Grand piano sales
are a trifle in the lead of phonographs.
The sheet music department has been draw-
ing more than capacity crowds every day be-
tween the hours of 12 and 1 o'clock when Jack
Little and Paul Small sang the current song
hits. They were there all the week of January
18.
A trade visitor in the city last week was E. J.
Huller of Louisville, Kentucky, representing the
newly re-organized Crown Piano Co.
Instalment Problems in
the 1924 Income Tax
chandise has not been repossessed, a deduction
for bad debts is permissible to the extent of the
cost of the merchandise over the amount col-
lected on the sale. When, however, the mer-
chandise has been repossessed it must be taken
into the inventory at its original cost, less a
proper allowance for damage and wear, and the
total amount collected must be reported as in-
come subject to an adjustment for any profit
previously returned as income.
When a dealer receives notes in payment for
merchandise he need not treat the notes as
equivalent of cash. This would follow where
the notes have no readily realizable market
value or if discontinued could not be converted
except at a substantial loss.
The taxpayer may elect to report his income
on the accrual or instalment basis, but once an
election has been made he will not be permitted
to change to a different basis. In the event
that a change is made from one method to an-
other, care must be taken so that the same
amount will not be deducted twice nor twice
taxed. The balance sheets at the beginning
and end of the year must be adjusted to con-
form with the change. The realized taxable
net income should be reconciled with the bal-
ance sheets as of the beginning and end of
the taxable year. The first step in the use of
the deferred profits method is to determine
the rate of gross profit on each year's sales ac-
cording to the principal classes of merchandise
as pianos, talking machines, records and sheet
music, radio sets, band instruments, etc.
(Continued from Page 3)
profit for that particular year, and the result is
the amount of gross income to be reported from
collections during the year.
The amount of gross profit to be reported for
the year 1924 would be arrived at as follows:
Year
1922
1923
1924
Received on
Percentage
Instalment Sales
$20,000
30,000
60,000
Gross Profit
50 per cent
60 per cent
45 per cent
$110,000
Gross Profit
$10,000
18,000
27,000
$55,000
The gross profit to be reported for 1924 from
instalment sales will be $55,000.
Where cash and instalment sales are made,
the dealer must determine accurately the cost
of his cash sales and use this cost in arriving
at his gross profit on cash sales. This pro-
cedure is necessary for the reason that in most
instances it will be found that cash sales show
a smaller percentage of gross profit than the
instalment sales. Where an article is taken in
part payment for merchandise sold on the in-
stalment plan, it should be treated as the equiv-
alent of cash, the amount being the allowance
at the time of sale.
The operating expenses of a dealer engaged
in selling merchandise on the instalment plan
are deductible in accordance with Section 214
(a), which provides for the deduction of all
ordinary and necessary expenses paid or in-
curred during the taxable year in carrying on
any business even though such expenses were
for income to be realized in a subsequent year.
When a loss has been incurred and the mcr-
If further information is desired on any of the points
discussed above or any other tax problems relating to the
musical instrument business, inquiries should be addressed
to the Tax Editor of The Music Trade Review, 383 Madi-
son avenue, New York City. All inquiries will be treated
in the strictest confidence.
Sauer Opens New Store
LORAIN, O., January 31.—The formal opening of
the new store of the A. B. Sauer Music Co., at
631 Broadway, was held here to-day and a large
number of patrons was entertained. Mr. Sauer,
proprietor of the business, recently took over
the phonograph department of the George A.
Clark Co., 422 Broadway, and is continuing the
business under his own name. He came to
Lorain in 1918, at which time he became iden-
tified with the sales staff of the Clark concern.
Mr. Sauer plans to expand the business to in-
clude all lines of musical instruments, and will
also direct the organization of new musical so-
cieties, bands and orchestras.
Hills to Go on Tour
On February 7, August Hill, Frederick
Hill and Charles Hill, of Hill & Sons, 1365
Myrtle avenue, Brooklyn, New York, accom-
panied by Mrs. August Hill and Mrs. Frederick
Hill, will leave for an extended tour of the
southern states and Cuba in the interest of their
rapidly growing wholesale business in order to
get in closer personal touch with the many
dealers to whom they have been making large
shipments of pianos during the last year.
Standard Receiver's Sale
The Standard Music Roll Co., 29 Central ave-
nue, Orange, N. J., will be sold by the receiver,
Arthur T. Vanderbilt, at public auction on
Thursday, February 19, at 2 o'clock in the after-
noon. The sale will take place in the office
of the Standard Music Roll Co., 29 Central
avenue.
Pratt Read
Products
Piano Ivory
Piano Keys
Piano Actions
Player Actions
Established in
1806
at Deep River, Conn.
Still There
Standard Service and Highest Quality
Special Repair Departments
Maintained for Convenience
of Dealers
PRATT, READ & CO.
PRATT READ PLAYER ACTION CO.
Oldest and Best