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Here Is How
The Carrying Charge
Is Working Out
T
H E majority of music houses in Los An-
geles adopted the carrying charge method
on instalment sales contracts two to four
years ago and enthusiastically endorse the plan
which they declare is not only more profitable
to the merchant but easier to explain and make
clear to customers.
The only variation appears to be in the in-
clusion under the carrying charge or other-
wise of insurance against fire, embezzlement or
both. Some houses require the customer to
pay extra for insurance while other dealers pay
the necessary insurance premium, including it
in the carrying charge, without additional cost
to the purchaser.
The computing of the carrying charge is very
simple, namely: one-half of one per cent of the
unpaid balance, after the first payment, per
month until the contract is completed. For in-
stance, if a customer buys an instrument for
$750, making a payment of $150 down—thus
leaving a balance of $600—he pays carrying
charges of $3 per month until the instrument
has been paid for in full.
A contract embodying the carrying charge
reads as follows:
"I promise to pay to the order of The John
Doe Company of Los Angeles at their office,
Los Angeles, California,—Seven hundred fifty
dollars ($750.00), together with a monthly ac-
commodation charge as hereinafter set forth,
for—Blank Baby Grand Piano—Style and Wood
—Queen Anne Mahogany—No.— xx — and—
Bench—as follows: Allowance of $75 for—
Obsolete Piano — and —Seventy-five —Dollars
($75.00) on — November 25, 1927, and the bal-
ance of—Six hundred—Dollars in instalment
payments of $30.00—for twenty months—
per month, plus accommodation charge, pay-
able in addition to said instalment payments,
of $3.00 per month, for each month of the life
of this contract, making a total monthly pay-
ment of $33.00 payable on or before the 25th
day of each month hereafter, commencing on
the 25th day of December, 1927, until the full
amount of principal, with accommodation
charges as aforesaid, is paid in full.
"It is expressly agreed that the title to the
above-described instrument for which this con-
tract is given is, and shall remain in the John
Doe Company of Los Angeles, and under their
direction until paid for in full. Should the said
instrument be misused or any attempt to dis-
pose of or sell or remove the same from my
present or future address be made by me with-
out the written consent of the John Doe Com-
pany of Los Angeles first obtained or should I
ESTABLISHED 1862
make default in the payment of
any one of said instalments or
accommodation c h a r g e s as
above specified or taxes or
should the said instrument be
attached or levied upon, or
should there be failure on my
part to keep any of the prom-
ises or agreements h e r e i n
stated, then the whole amount of this contract
becomes at the option of the John Doe Com-
pany of Los Angeles, immediately due and pay-
able, it being elective with the John Doe Com-
pany of Los Angeles, to enforce payment or re-
take the said instrument, should the John Doe
Company of Los Angeles decide to retake the
said instrument, it shall be lawful for them or
their assigns or representatives to enter any
place where the said instrument may be found,
and take immediate possession thereof, and all
damages of said entry are hereby waived, and
whatever has been paid shall be forfeited for
wear and tear, rent and expenses of taking the
same, and for any other damages and expenses
they may have been put to on my account or
in making this sale, or by reason of such fail-
ure and forfeitures, and in case sufficient has
not been paid at such time of retaking to
cover a fair rental for the said instrument, as
well as all damages and all expenses, the John
Doe Company of Los Angeles, may have been
put to, then the John Doe Company of Los
Angeles shall have the right to collect such
deficiency. In case suit is instituted to collect
this contract I agree to pay all costs, including
attorney's fee, in said suit.
"It is hereby agreed that, if each payment,
together with all accruing accommodation
charges provided for in this contract, is paid on
or before the date due, and all of the other
terms and conditions of this contract which
are binding upon me are complied with, should
at any time before payment in full of principal
and monthly accommodation charges as herein
provided, said piano be accidentally damaged or
destroyed by fire while located at the address
specified herein, or at any other address to
which the John Doe Company of Los Angeles
has consented in writing for the removal of said
piano, the John Doe Company of Los Angeles
will in such case repair said piano or replace
the same with another of equal value, either
in
Los Angeles
of same or other make, and in the event of
such replacement the John Doe Company of
Los Angeles is hereby authorized to insert in
this contract the serial number and description
of the instrument delivered in the place of
the serial number and description of the in-
strument damaged or destroyed, and this con-
tract shall remain in full force and effect. If,
however, I fail to pay any of the aforesaid in-
stalments either of principal or of accommo-
dation charge when due, or said piano is re-
moved from the above address without the
written consent of the John Doe Company of
Los Angeles, or if I fail to comply with any
of the other conditions aforesaid, I hereby
agree that the John Doe Company of Los
Angeles thereupon shall be released from all
obligation to repair or replace said piano in
case of loss or damage by fire.
"Upon payment by me in full of this con-
tract the John Doe Company of Los Angeles
shall give me a bill of sale of said instru-
ment. It is understood and agreed that this
contract is subject to acceptance by the John
Doe Company of Los Angeles at their office in
Los Angeles, California. Time is the essence
of this contract.
"Signed
"
Another obvious advantage of the carrying
charge method is that it offers an inducement
to the purchaser to pay up his contract in full,
ahead of time, and thus save himself the pay-
ment of the carrying charge for the number of
months which he has anticipated.
Most of the music houses in Los Angeles
who have adopted the carrying charge refuse
to issue a contract on any other terms.
The music houses of Los Angeles that have
adopted the carrying charge method include:
Wiley B. Allen Co.; Barker Bros.; Birkel Music
Co.; Fitzgerald Music Co.; Martin Music Co.;
Platt Music Co.; Richardson's, Inc.; Southern
California Music Co.
L^UTEH
ONE:
OF AMERICAS
NEWARK N. J.
FINE PIANOS
UPRIGHTS
GRANDS
THE LAUTER-HUMANA