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The Music Trade Review
MARCH 3, 1928
Victor T. M. Co. Sales
$46,886,842.11 in 1927
Co.; Roussellott-Luebtow Music Co.; Orth
Music Co.; Schefft's Victrola Shops; Edward
Gram, Inc.; Kesselman-O'Driscoll Co.; Gitzel's
Music Store, and the Buech Saxophone Shop,
all of this city.
New Mutual Finance Go.
Is Launched in Boston
Net Income of $7,269,523.03, After Deducting Dividend Require-
Several Prominent Members of Music Trade
ments on Prior Preference and Convertible Preferred
Directly Interested in the New Venture De-
signed to Cut Financing Costs
Stocks, Showed Earnings ,of $8.93 on Common
CCORDING to the report issued last week by the Victor Talking Machine Co., and cover-
ing its activities for the fiscal year ending December 31, 1927, the first year of operation
under the new capitalization of the company, the twelve month period proved unusually
successful, the net income being $7,269,523.03.
The net profit of $7,269,523.03, is equal, after deducting annual dividend requirements of the
prior preference and convertible preferred stocks, to $8.93 per share of common stock; and after
deducting also the annual prior preference stock
sinking fund appropriation, to $7.83 per share year this department has been further strength-
ened and much important work has been under-
of common stock.
In transmitting the report of the board of taken.
"The outlook for 1928 is favorable, and your
directors, E. E. Shumaker, president of the Vic-
tor Co., calls attention to the fact that net sales company is entering the new year with large
of $46,886,842.11 for the year exceeded those of manufacturing schedules, adequate facilities and
1926 by $224,738.38. He also states that direct a competent organization."
export business of the company showed sub-
stantial growth during the year, and repre-
sented approximately 15 per cent of the total
sales for 1927. Included in the item of "other
income" (income not derived from net sales of
the company) are dividends of $538,310.75 from Veteran Music Merchant Succumbs to Paralytic
Stroke—Was Sixty-five Years Old and Had
shares owned by the Victor Co. in the Gramo-
Been in Music Business for Thirty Years
phone Co., Ltd., of England, and $40,008 re-
ceived on shares owned in the Victor Talking
PITTSBURGH, PA., February 27.—Thomas E. Mc-
Machine Co'., of Canada, Ltd.
The financial position of the company, as set Causland, for more than thirty years engaged in
forth on the consolidated balance sheet, shows the piano business in Pittsburgh, died on Febru-
current assets of $29,740,664.63 against current ary 24 at 1 a. m. following a paralytic stroke.
liabilities of only $4,860,378.83. The president Mr. McCausland was stricken some months ago,
also points out that the investment in foreign but managed to recuperate sufficiently to visit
affiliated companies of $7,714,205.98, is an in- his place of business at 330 Liberty avenue for
crease of $3,969,205.49 over December 31, 1926. a few hours daily. Later he was affected with
This increased investment is represented by tailing eyesight and lost the use of one eye.
payments on stock owned in The Gramophone Finally he was compelled to go to the hospital,
Company, Ltd., and the acquisition of additional where he failed to respond to treatment, and
shares in the Victor Talking Machine Co., of death ensued. Mr. McCausland was sixty-five
years of age and was widely known to the
Canada, Ltd. It includes also an investment of
$317,299.04 in the Victor Talking Machine Co., music trade of western Pennsylvania, eastern
of Japan, Ltd., which was organized late in Ohio and West Virginia. He was a hard
1927. The company also adjusted through sur- worker, and in his business life had disposed
plus its investment in the Gramophone Co. of a large number of pianos and other musical
and the Canadian company on a basis of their instruments. His widow and one daughter sur-
1927 book values, this adjustment amounting to vive. He was a member of the Masonic frater-
an increase of $845,283.57. Against this is an nity. The funeral services were held on Sunday
appropriation for trade adjustments and con- with interment following.
tingencies, aggregating $556,779.28. The con-
solidated statement of surplus shows a balance,
as of December 31, 1927, of $6,142,141.70.
A cash investment of $1,200,000 was made in
three domestic wholesale distributing com-
MILWAUKEE, WIS., February 27.—A slogan con-
panies during the year. During 1927 the scien-
test is being conducted in Milwaukee by a num-
tific research and development department of
the company also was substantially strength- ber of local music dealers featuring radio lines
as well as by members of the Wisconsin Radio
ened.
"It is the settled policy of your management Trade Association. Prizes amounting to $1,925
to make liberal appropriations for scientific re- are offered for the best slogan submitted. Music
search and development work," said Mr. Shu- dealers taking part in the plan include the
maker in transmitting the_ report. "During the Flanner-Hafsoos Music House, Inc.; Noll Piano
A
Thomas E. McCausland
Passes Away in Pittsburgh
Radio Slogan Contest
in Milwaukee Trade
ESTABLISHED 1862
New York State Convention
in Syracuse in May
SVKACUSE, N. Y., February 27.—Glenn L.
Chesbro, secretary of the New York State
Music Merchants' Association, announces that
the annual meeting of that organization will be
held in Syracuse on Tuesday and Wednesday,
May 1 and 2. The officers of the association are
now working on the program, the details of
which will be made public within the next few
weeks.
The Sidle Co., Chickering representative in
Van Wert, O., recently installed a Chickering
grand, Style K, ebony finish, in the Van Wert
High School.
L^UTEH
ONE
GRANDS
BOSTON, MASS., March 1.—The Merchants'
Investment Trust Co., located at 216 Tremont
street, has now got well enough established so
that it has a distinct service to offer the music
trade. The company is a mutual dealers'
finance association and a number of the leading
music merchants have become affiliated with it.
Its chief aim is to enable the music merchant
to reduce to a minimum the cost of his financ-
ing by being a participant in the earnings of
the trust. Already the company is financing
dealers' paper, and pamphlets telling of the
methods, policy and charges on the discounting
of paper will shortly be mailed to the trade.
Plans have been made to discount piano, phono-
graph, musical merchandise and radio paper.
The depositories of the trust are the National
Shawmut Bank of this city, and the National
Rockland Bank of Roxbury (Boston). Follow-
ing are the officers of the trust: Harold C.
fribble, president and trustee, formerly of the
C. C. Harvey Co., and the Weaver Piano
Co., of York, Pa.; Walter H. Sturgis, Jr.,
vice-president, treasurer and trustee, formerly
of the Eastern Talking Machine Co., and
proprietor of the Sturgis Music Co., and
Julius B. North, secretary, formerly assistant
treasurer and director of the McPhail Piano
Co.
The advisory board is made up of the fol-
lowing named: George Heukelnian, president
of the Henkelman Piano Manufacturing Corp.,
of New York City; Harry K. Mance,
president of Mance Brothers, Inc., New Haven,
Conn.; Isaac A. McLean, president Isaac Mc-
Lean Sons Co., Boston, Mass.; W. H. Sturgis,
M. D. Sturgis Hospital, Hull, Mass.; F. E.
Freeman, president of F. E. Freeman Co., in-
vestment bankers.
OF AMERICA*S;FINE
NEWARK N. J.
PIANOS
UPRIGHTS
THE LAUTER-HUMANA