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News Number
THE
VOL. 88. No. 12
REVIEW
Published Weekly.
Federated Business Publications, Inc., 420 Lexington A?e., New York, N. Y. Mar. 2 3 , 1 9 2 9
8lD
*g.£ o K? Year ent8
Shirley Walker Again Heads
No. Calif. Trade Body
Re-elected to Presidency of Music Trades Association of Northern
California—Important Legislation and
Tax Matters Discussed
AN FRANCISCO, CAT.., March 16.—Shir ley Walker of Sherman, Clay & Co., who has
so ably directed the destinies of the Music Trades Association of Northern California for
some years past, was again elected presid ent at the annual meeting held in the Clift Hotel
here this week.
Walter S. Gray, head of the music firm which bears his name, was elected first vice-president;
W. S. Gibbs manager of the Fox Piano Co., Oa kland, was made second vice-president and Mor-
ley P. Thompson, Pacific Coast representative
The new tax measure just passed by the
of the Baldwin Piano Co., took over the duties
of treasurer of the association for the coming
State legislature was explained in a special two-
year.
page article prepared by R. B. Miller, secretary
of the association, entitled: "The New Tax
Additional directors elected were: F. A. Levy
Legislation." Later in the week, copies of this
were sent out, not only to members of the
association, but to many music merchants in
THE OFFICERS FOR 1929
northern California who are not members, in
President—Shirley Walker
order that they may be familiar with the new
1st Vice-President—Walter S. Gray
tax situation. Some months ago, the Music
Trades Association of northern California,
2nd Vice-President—W. S. Gibbs
through its president, Shirley Walker, wrote a
Treasurer—Morley P. Thompson
letter to members endorsing this new legisla-
tion, as an aid to music merchants, before it
was made law.
of the California Phonograph Co., San Fran-
The secretary of the association, R. B. Miller,
cisco; William C. Cross, manager of the radio
considering the question of legislation a matter
and phonograph departments, Jackson Furni-
of importance to music merchants throughout
ture Co., Oakland; William H. Quarg of Quarg
the country, gave out the following summary
Bros. Music Co., San Francisco; Leon M. Lang,
of the tax situation in California:
manager of the East Bay branches of Sherman,
Tax Summary '
Clay & Co., and A. J. Schrade, San Francisco
"The tax situation in California for the last
manager for the Columbia Phonograph Co.
A very satisfactory annual report was pre- few years has been in a very involved and un-
sented by President Shirley Walker, reviewing satisfactory condition. In order to correct this
the work accomplished by the Association dur- situation the legislature, at the last session,
ing the past year, and a good financial report completely revised the system of taxation on
was read by the 1928-9 treasurer, Walter S. business corporations. This was particularly
interesting and important to the music dealer
Gray.
as the greatest change was made in the manner
Legislation Discussed
In view of certain proposed measures coming in which solvent credits, that is, open accounts
up before the State legislature, especially a rendable and lease contracts were handled. The
Senate bill which would be very detrimental to situation in this respect has been particularly
merchants selling goods on the instalment plan, unsatisfactory.
"Prior to 1925 the city and county assessors
it was decided that, if necessary, the Music
Trades Association of Northern California were allowed to assess solvent credits on any
would send a delegation to Sacramento. It is basis they saw fit, consequently the methods
believed, however, that the objectionable meas- of assessing these taxes varied considerably in
ures will be defeated. Among them is a pro- different counties. A law was passed in 1925
posed act compelling- registration with county specifying the manner in which solvent credits
clerks of all instalment contracts, with a filing must be assessed by city and county assessors
at 7 per cent of their face value. This was
fee for each.
S
Shirley Walker, Reelected President of Music
Trades Ass'n of No. California
definite and quite satisfactory to the merchants.
However, this law, together with a law passed
in 1927 changing the manner of assessment
somewhat, was declared unconstitutional in the
courts in 1928. This compelled the new legis-
lation that has just been passed.
"Under the new law, solvent credits must
be assessed by city and county assessors at one
mill on the dollar of actual value, or 10 cents
per $100. This is a great deal less than the
7 per cent law of 1925, and of course, it is all
the more pleasing to the music merchant who
usually pays quite a proportion of his total
taxes on his solvent credits, or accounts. There
are also some other changes in the tax laws,
but they do not mean so much to the music
merchant as this change in the manner of
assessment of solvent credits.
"There has also been a change in the State
Franchise Tax. This was heretofore assessed
by the State Board of Equalization. Now, how-
ever, there has been substituted for this a
franchise tax of 4 per cent on the net income
of a corporation. Deductions up to 75 per cent
are allowed. The net results of the change in
the tax system, as far as the music merchant
is concerned, will result in his paying higher
(Continued on page 4)