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The Music Trade Review
REVIEW
(Registered in the U. S. Patent Office)
Published on the First of the Month by
Federated Business Publications, Inc.
at 420 Lexington Avenue, New York
Publishers of Antiquarian, Automotive Electricity, India Rubber World, Materials
Handling & Distribution, Music Trade Review, Novelty News, Rug Profits, Sales Man-
agement, Soda Fountain, Talking Machine World & Radio-Music Merchant, Tires; and
operates in association with Building Investment, Draperies and Tire Rate-Book.
President, Raymond Bill; Vice-Presidents, J. B. Spillane, Randolph Brown; Secretary
and Treasurer, Edward Lyman Bill; Comptroller, T. J. Kelly; Assistant Treasurer,
Wm. A. Low.
B. BRITTAIN WILSON, Editor
CARLETON CHACE, Business Manager
F. L. AVERY, Circulation Manager
RAY BILL, Associate Editor
E. B. MUNCH, Eastern
Representative
WESTERN DIVISION: FRANK W. KIRK, Manager
333 No. Michigan Ave., Chicago. Telephone: State 1266
Telephone:
Lexington 1760-71
Cable:
Elbill New York
In order to insure proper attention all communications should
be addressed to the publication and not to individuals.
Vol. 89
O
January, 1930
1
What Retailers Think of 1930
N the opposite page is presented the results of a survey
of the retail music trade conducted by The Review for
the purpose of getting first-hand information regarding
the attitude of retailers as to the business of 1929, and the prospects
lor 1930. No attempt was made to reach every dealer in the coun-
Iry, but several hundred representative music merchants were
queried directly and a very substantial proportion of them took
occasion to give the desired information.
It was found that of the merchants replying, sixty-two per cent
had enjoyed a volume of sales for 1929 in excess of the 1928 figures.
This is not taken to indicate that there was any decided improve-
ment in the situation, but rather that these merchants were holding
their own and making some gains. In a goodly number of cases, of
course, the increase was in units and the total income was some-
what less than for the previous year. It is significant that changed
conditions were indicated in practically all departments. Even in
radio a number of dealers reported increases in unit sales, but de-
creases in total income. Sheet music sales appeared particularly
strong, which can be taken by the optimistic to indicate a growing
interest in piano playing, for sheet music is bought for use and not
for ornamentation.
The courage of the retail branch of the industry is particularly
manifest in the opinions offered as to prospects for the new year.
Perhaps the eighty-five per cent who see encouragement in the out-
look and expect improvement in sales mjay be wrong, but surely
they are sufficiently familiar with their local situations to have some
basis upon which to make their optimistic predictions. Optimism
alone will not sell goods, but it is certain that the merchant who has
confidence in the situation is much more likely to get results from
his sales efforts than js the man who starts out pessimistically and
is licked before he starts.
The Review presents this report of a thoroughly representative
cross-section of the trade in the belief that it should have a definite
value for manufacturers and wholesalers in the development of
their plans for the coming twelve months.
W
The American Piano Co. Situation
ITHIN a week after the announcement of the ap-
pointment of a receiver in equity for the American
Piano Co. and its subsidiaries, the matter had
ceased to be news because of the wide publicity given it in the daily
JANUARY, 1930
press—publicity that, based on surface indications, and without in-
formation regarding underlying conditions, is not calculated to help
the industry as a whole.
To those of the trade who followed the activities of the Ameri-
can Piano Co. under its banker management, and they were in the
majority, the receivership did not come as any great surprise, but
the action itself nevertheless created a distinct stir and led to numer-
ous conjectures on just what effect it would have on the business
as a whole.
Even before the receivership there was a movement under way
to take over the company's assets, and it is an open secret that
this miove has not yet been abandoned. Should it be successful, it
is likely that the trade will be saved from the unloading of a great
quantity of pianos at bankruptcy prices. Another encouraging factor
is the activities of the Creditors' Committee headed by William A.
Mennie, president of the Musical Supply Association, and of the
Standard Pneumatic Action Co. This committee is working directly
with the receiver in an effort to evolve some plan that will conserve
die assets and perhaps again put the business on a sound basis.
The move of the preferred stockholders of the company in organ-
izing a protective committee to look after their interests and de-
signed particularly to make an effort to bring about the reorganiza-
tion of the company is particularly interesting. Although there has
not yet been time for definite action to be taken on the plan, it is
nevertheless regarded as most desirable. It is recognized that the
men sponsoring the preferred stockholders committee, namely:
W. B. Armstrong and George G. Foster, are the same men who
were responsible for developing the company's business so success-
fully some years ago.
The attitude of the receiver is indicated in the move made to cut
down the payroll of the company by approximately half million
dollars a year, the announced intention of eliminating retail outlets
that are unprofitable, and in plans for effecting substantial savings
in other directions.
The whole matter is most regrettable, particularly in thai three of
the best known names in the piano world, Mason & llamlin, Knabe
and Chickering, are involved. In an industry where name values
are of such great importance, this in itself is serious. The situation
has also demonstrated that while pianos may be merchandise in
the strict sense of the word, their marketing calls for an under-
standing of the piano trade background and policies in addition to
the ordinary merchandising sense that is required in other lines of
business. It is significant that every previous effort to ignore name
values and trade principles in the handling of pianos has resulted in
failure.
It is very likely that should either general creditors committee or
the protective committee representing the preferred stockholders
present a plan that is acceptable to the receiver and thus take over
the business, a large part of the assets can be conserved to the
lasting benefit of the industry at large. Certainly the men making
up the committees include practical piano merchandisers who may
be expected to go back to what may be termed first principles in
piano selling. Those principles may not be entirely in accord with
what are regarded as the highiy efficient business methods of the
day, but at least they have been able to move pianos profitably.
E
What Los Angeles Is Doing
VERY member of the music trade who believes that the
A future development in the industry depends upon the
training of the youth of the country in personal musical
expression will do well to read carefully and study the annual report
of the musical activities of the Eos Angeles Department of Play-
ground and Recreation. Here is a municipality that takes its m,usi-
cal training work seriously, not alone for its cultural value, but
because it is regarded as representing one of the direct roads to
better citizenship. It is a movement that should be brought to the
attention of authorities in every city in the United States, and the
members of the music trade itself should be particularly well qual-
ified to see that this is done.