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The Music Trade Review
Sherman, Clay & Co. Report Gross
Sales of $8,500,000 During Past Year
Company Looking Forward to Better Conditions During 1926—Liquidation of Old Talking
Machine Stocks Factor in Conditions During 1925—L. S. Roberts Features Chickering Artist
Q A N FRANCISCO, CAL., April 29.—The
^magnitude of Sherman, Clay & Co.'s opera-
tions is shown by the balance sheet as of
December 31, 1925, which was mailed last Mon-
day to the stockholders. It also emphasizes
the strong financial position of the company.
Current assets exceeded current liabilities by
$5,840,263.77, which is more than twice the par
value of the outstanding prior preferred stock.
The letter to the stockholders runs, in part:
"Gross sales for the year 1925 of approxi-
mately $8,500,000 compared favorably with
those of the previous year. However, due to
adverse conditions affecting the company, the
year was not a profitable one. New inventions
for reproduction of sound adopted and pro-
duced by the Victor Talking Machine Co.
caused an almost entire change in the instru-
ments produced by this factory. It was con-
sequently necessary for your company to liqui-
date old stocks at a substantial loss in order
to make way for the new product. The com-
plete change of models has caused a lengthy
delay in production. Deliveries could not be
obtained in sufficient amounts before the close
of the year to offset the loss incurred in mov-
ing obsolete equipment. Over $1,000,000 in
orders simply await arrival of goods from the
factory.
"Prospects for the year 1926 are substantially
better than those at the beginning of last year
and indicate an increase in sales volume."
Following is the condensed balance sheet:
SHERMAN, CLAY & CO.
Balance Sheet, December 31, 1925.
ASSETS.
Current—
Cash on hand and in banks..$ 345,893.97
Receivables, leases, contracts
and open accounts (less re-
serves)
4,617,284.49
Inventory—merchandise at cost,
or less
3,341,609.14
Capital-
Automobiles, furniture and
fixtures, equipment (less de-
preciation)
$ 419,908.06
Investments—Stocks and bonds
3,675.00
Real estate—buildings (less
depreciation)
573,789.36
Deferred charges to operations
23,538.69
LIABILITIES.
Current—
Notes and accounts payable. .$2,384,650.64
Deferred—Due bills and con-
tingent commissions
79,873.19
Capital—
Capital stock, par value $100
per share; prior preferred
7% authorized $3,000,000
outstanding
$2,896,200.00
Preferred 6% authorized
$2,000,000 outstanding
1,739,000.00
Common—Authorized and out-
standing :
2,000,000.00
Surplus, including dividend due
January 15, 1926
225,974.88
$8,304,787.60
1,020,911.11
$9,325,698.71
$2,464,523.83
Co. is Charles A. Ericsson, president of Ludwig
& Co. One of the company's favorite piano
lines is the Ludwig, and Mr. Ericsson's visit
is always an event at the Kearny street house.
He was one of the invited guests at the golf
tournament.
Lee S. Roberts Features Chickering Artist
Special local advertising has been devoted
this week by Lee S. Roberts, Inc., to Margaret
Tilly, in the all-Bach recital, with members of
the San Francisco Symphony Orchestra, given
last Monday evening. Miss Tilly is an exclusive
Chickering artist and records exclusively for
the Ampico, and the Roberts ad says: "Margaret
Tilly * * * has given another gem to the
treasury of musical history of our city."
Radio Association Sends Ernest Ingold
as Representative
The Pacific Trade Radio Association has
deputed Ernest Ingold, president of Ernest
Ingold, Inc., to represent the association at the
convention of the National Radio Trade Asso-
ciation in Atlantic City. He is leaving this city
on May 4. He represents Atwater Kent products
in northern California and acts as Mr. Kent's
representative on managing the Atwater Kent
concerts, broadcast over KPO.
Columbia Dealers Copy the Model Windows
There is quite an interesting similarity be-
tween the store windows of a number of
Columbia dealers in this territory. The explana-
tion of this is found in the model store win-
dows of the Columbia branch here. These
windows were decorated with the intention of
giving suggestions to Columbia dealers for their
displays. Dealers who visited the branch were
pleased with the attractive effects that had been
produced from the simple arrangements of beau-
tiful cards, and many of them asked that this
service be delivered to their stores each month
as it is released by the Columbia Phono-
graph Co.
New Location Yields Excellent Results
Both Waters & Ross, Holton band instrument
distributors and dealers in small goods gen-
erally, and Reese & Furhman, sheet music
dealers, find that their new location on Stock-
ton near Market street has led to greatly in-
creased business. According to Reese &
Furhman, Berlin's "Always" continues to be
their best seller in the popular numbers.
How Piano Dealers Are
Creating a New Market
6,861,174.88
$9,325,698.71
Golf Players Are Paged in Vain
Four crack golf players of the Sherman, Clay
& Co.'s forces and a like number from the
Wiley B. Allen Co. have been holding their
fourth annual golf tournament at the Lakeside
Country Club this afternoon. The shades of
night are now falling fast and paging has failed
to bring answers from them. This means that
golf fans will have to wait for another week
to know which of the music houses will hold
the silver plaque during the coming year.
Beeman P. Sibley, president of the Western
Piano Corp., and Morley P. Thompson, man-
ager for the Baldwin Piano Co., are the referees,
and, as both are able-bodied, strong-minded
men, everyone is sure that they will shepherd
the two foursomes safely back to the club, there
to enjoy the excellent dinner that is understood
to await them.
President of Ludwig & Co. Here
Paying his annual visit to the Wiley B. Allen
(Continued from page 3)
"If you want to see the phenomenon of twenty
youngsters taking their music lesson at the
same time without a note of actual music being
played, attend a class. It's another step the
younger generation is taking upward."
Another letter received comes from Robert
N. Watkin, past president of the National Asso-
ciation of Music Merchants, and widely known
music merchant of Dallas, Tex. Mr. Watkin
writes:
"Dallas, Tex., April 26, 1926.
"Editor, The Music Trade Review—Permit
me to comment on your able lead article in the
April 24 issue, 'Why a New Market Must Be
Created for the Piano.' You show unanswer-
able figures and draw inevitable conclusions.
You ask the question, 'what's the matter with
the piano industry?' My answer is 'there is
nothing wrong with the merchandise made and
sold.' It is people—men—not merchandise that
must be dealt with. We are not recruiting our
ranks with the right sort of recruits. We are
quite evidently not getting or attracting the
brains we need and require. I believe this is
MAY 8, 1926
the situation which must be improved if pos-
sible.
"Very truly yours,
"ROBERT N. WATKIN."
Time, of course, is the only thing which will
prove the truth of Mr. Watkin's contention.
Perhaps the question is not so much the per-
sonnel of the piano industry, but rather a lack
of knowledge concerning the fundamental facts
on which the demand for pianos is built. So
far as The Review knows, there has never been
any analysis of the annual output of pianos in
relation to the growth and development of the
market which absorbs it until the preparation
and publication of the article in The Review
which brought forth both these letters. As a
manufacturer, in discussing this article with
a representative of The Review pointed out
last week, facts are what is needed more than
any one other thing, facts presented to the trade
in a way that will awaken it to the seriousness
of the situation. Once the industry fully grasps
these facts unquestionably it will be ready to
meet them and overcome the difficulties which
have prevented the advance of the industry on
a proper ratio to the advance of the country
which it supplies.
Krakauer Bros. Move
Warerooms to Factory
All Retail Selling to Be Done at Factory on
Cypress Avenue—Milton Weil in Charge of
All Retail Work
The retail wareroom of Krakauer Bros.,
which has been located at 116 West Forty-
fourth street, New York, has now been com-
bined with the retail wareroom at the factory
at Cypress avenue, between 136th and 137th
streets, New York. One of the most attractive
warerooms in the city has been built at the
factory and was opened to the public on May
1. The retail branches, as heretofore, are under
the supervision of Milton Weil.
The new wareroom has paneled walls and is
very much larger than the one previously occu-
pied, giving an ample opportunity for the dis-
play of Krakauer pianos and player-pianos. A
private office has been placed in one corner of
the wareroom, with mahogany fixtures and
furniture in contrast to the white and cream
wall decoration. Great care has been taken in
the lighting effects, and floors of selected maple
are covered with handsome Oriental rugs.
To a representative of The Review this week-
Mr. Weil stated that already they have been
doing a splendid business, although having only
occupied their new quarters for a few days. "We
believe," he said, "that the new arrangement
is going to work out most satisfactorily. In
making an analysis of our business I found
that over 80 per cent was done with prospects
who live above 100th street, and by being in
constant touch with the factory I feel very
certain that our business will show a constant
improvement."
Witt Erects New Building
LORAIN, O., May 3.—The Witt Music Store,
operating two local piano establishments at 625
and 728 Broadway, has made preliminary ar-
rangements for a ten-year lease on a new two-
story brick structure being built on Broadway
opposite Seventh street. It is expected that
occupancy will be taken about September 1, at
which time both of the present Broadway stores
will be discontinued and combined at the new
address. The building will have a frontage of
twenty-five feet on Broadway and will be 100
feet deep. The ground floor of the new build-
ing will be utilized for the display of general
musical merchandise and the second floor will
be fitted up as piano showrooms.
Consult the Universal Want Directory of
The Review. In it advertisements are inserted
free of charge to men who desire positions.