Music Trade Review

Issue: 1945 Vol. 104 N. 11

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
HIGH LIGHTS
Dr. Backman on Absorption Says;
"Congress Is Now the Only Recourse 1
In an address recently at the fall
convention of the National Retail Dry
Goods Association in New York, Dr.
Jules Backman of New York Univer-
sity, author of the recent study on
cost absorption presented by mer-
chants to the OPA said that, "nothing
may be expected" from the OPA with
respect to cost absorption by retailers
because of that price agency's "fixed
ideas" on price control and that "Con-
gress is now the only recourse." He
declared that OPA says it has its
"marching orders," and it is now up
to Congress to change those orders.
The "top crowd" at OPA, he asserted,
knows only one type of price control,
based on their experience, and that is
controlling all prices, whereas selec-
tive price control has bee found highly
effective in a number of countries, in-
cluding Great Britain.
Reviewing the arguments presented
to OPA and the Smith committee re-
cently, with emphasis on the fact that,
while retailers showed sharp percent-
age profit increases during the war
period because of low expenses, these
costs are now due to rise, Dr. Backman
said:
"OPA is pricing manufactured goods
on what it considers to be long run
costs, thus forcing absorption at that
level and then for retailers OPA uses
short run costs as the basis for pric-
ing in order to force absorption there.
Temporary cost increases are excluded
from the manufacturer's permitted
price. Temporary cost decreases for
retailers are cited as evidence of the
ability to absorb higher costs."
Recent Changes in O.P.A.
Durable Goods Pricing
A special pricing method used by
maufacturers of consumer durable
goods who were forced to change their
productsi because of wartime shortages
of materials and parts was revoked
on November 5, 1945, the Office of
Price Administartion has announced.
From now on, manufacturers who
previously would have used this me-
thod—the second pricing method of the
consumer durable goods regulation—
will price instead under the third
method.
All applications for new or changed
models from manufacturers who have
ceiling prices already established for
comparable models now will be filed
under a single pricing technique. This
will help to speed up processing of re-
ports, OPA said.
The new action also revises the third
pricing method by directing manufac-
turers to figure their ceiling prices on
the basis of current costs rather than
March 1942 costs.
Many manufacturers are producing
goods that will require use of provi-
sions in both the consumer durable
goods regulation and the reconversion
pricing order for individual manu-
facturers. Many individual adjust-
ments on reconversion items are handled
by OPA district offices. So that these
manufactuers may have all their busi-
ness processed in one place, today's
amendment permits them to file their
reports under the third pricing me-
thod with their district offices as well.
For similar reasons, manufacturers
who price new articles on the basis of
prices already set for comparable ar-
ticles, may file their third pricing me-
thod reports with the field offices that
priced the comparable items. A corol-
lary action broadens the authority of
district and regional offices to make it
possible for them to issue pricing or-
ders or to approve prices in these cases.
These changes will not affect the
general level of prices under the reg-
ulation, which is stabilized at the
THE MUSIC TRADE REVIEW, NOVEMBER, 1945
March 1942 level, OPA said. Nor will
they have any effect on consumer prices
for furniture, bedding, housewares,
tools, small electrical appliances, lug-
gage, lamps and other goods covered
at the manufacturing level by this
regulation.
Both the second and third pricing
methods were designed to keep prices
at the same general levels, OPA said,
so a transfer from one technique to
the other will not make any appreci-
able difference.
Use of current rather than March
1942 direct costsi will generally pro-
duce the same end-prices for the pro-
ducts, but manufacturers' mark-ups
over direct costs may be reduced.
Where this is so, however, it merely
recognizes a condition that already
exists.
The change is being made because
as the current situation moves farther
and farther away from March 1942,
it becomes more difficult to obtain cost
figures for that period. In addition.,
other pricing provisions, including
some of the reconversion pricing rules,
require use of current or 1941 costs,
and it is burdensome to the manufac-
turer to have to compute still another
set of costs for 1942.
Under the revised third pricing me-
thod, a manufacturer figures the aver-
age mark-up allowed under the ceilings
for two comparable articles and ap-
plies it to the current unit direct cost
of the article to be priced. If the
manufacturers' costs for the compar-
able article have legally risen since
March 1942, his mark-up will be
smaller because his ceiling price has
not changed. When this smaller mark-
up is appied to the current cost of the
new articles, the final price is about
the same as the price derived from a
March 1942 mark-up over March 1942
cost.
Other changes follow:
A special order (Order No. 4332)
under the regulation provided a sim-
25
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
plified method of pricing for new small-
volume manufacturers. This method
may result in ceiling prices higher than
the level set by the regulation, be-
cause it was worked out to aid be-
ginners, especially veterans and war
workers, often starting in business
without enough capital to absorb heavy
initial costs of operation.
OPA now is specifically providing
that these prices shall not be consid-
ered representative of the levels set by
the regulation, and that articles priced
under the special order may not be
used as comparable articles for the
purpose of pricing other items.
W.P.B. Clarifies Pig Iron
Procurement
In clarifying the effect of an amend-
ment to Priorities Regulation 3, issued
October 22, 1945, the War Production
Board has emphasized that the removal
of ten products, ranging from alarm
clocks to pig iron, from List A of the
regulation does not affect the normal
buyer-customer relationship existing at
the present time and does not mean
that a preference rating is now re-
quired to obtain any of the affected
products.
For example, a user unable to obtain
necessary supplies of pig iron may
apply to WPB for assistance, and, if
necessary, for a preference rating un-
der the terms of PR-28. The same
procedure applies to pig iron for mal-
leable and grey iron castings under
Direction 4 to PR-28, issued previously.
Another Army-Navy E
Awarded Jesse French
A white star has been added to the
Army-Navy Production Award Flag
flying over the New Castle, Indiana,
Plant of the Jesse French & Sons
Piano Divison of Selmer.
The citation from the War Depart-
ment announcing the award was dated
September 21, and signed by Robert P.
Patterson, then Under Secretary of
War. It read:
"I am pleased to inform you that
you have won for the second time, the
Army-Navy Production Award for
Meritorious services on the production
front.
"You have continued to maintain the
high standards which you set for your-
selves and which won you distinction
more than six months ago. You may
well be proud of your achievement.
"The White Star, which the renewal
adds to your Army-Navy Production
Award Flag, is the symbol of appre-
ciation from our Armed Forces for
your continued and determined effort
and patriotism."
26
Its "The Music Council of America";
To Promote Music War Memorials
The Music War Council of America
became the Music Council of America
Wednesday, October 10, when the offi-
cers and directors voted at their regu-
lar monthly meeting to drop the word
"War" from the corporate name of the
organization. Scores of new names
were suggested by members and others
interested in th e wark and peace-time
objectives of the Council, but Music
Council of America was selected as
being most expressive of the body's
purposes and function, and best suited
to preserve the organization's identity
with a minimum of confusion.
In announcing the new name, Presi-
dent Jay Kraus referred to the Coun-
cil's record of war-time service to the
nation.
Mr. Kraus added, however, that the
Council's work is not done, but that
plans are being made for continuing
promotion of music as one of the means
that should be brought into play to help
preserve the peace which wartime sac-
rifices have bought.
The first of the peace-time projects
to receive the attention of the Council's
officers and directors at the October
meeting held at the organization's new
headquarters in the Fine Arts Build-
ing, Chicago, was a plan to encourage
the erection of band shells and music
halls and the endowment of musical
organizations as living war memorials.
An illustrated brochure that suggests
several types of music memorial pro-
jects for communities and cities of
different sizes, including outlines of
possible procedures to follow at the
local level, has been prepared and may
be obtained by writing to Howard C.
Fischer, executive secretary, Music
Council of America, 534 Fine Arts
Building, Chicago 5, Illinois.
In the brochure several plans and
perspective drawings of music pavil-
lions and band shells are reproduced
and various suggestions are made re-
garding the launching of a local cam-
paign for the purpose of raising money
with which to erect the Memorial. What
has been done in other cities along
these lines is also explained and the
costs of numerous memorials given.
Finally following are these explana-
tions the Council states under "Gen-
eral Considerations".
"From a study of music facilities al-
ready in successful operation over the
country ideas may be formed concern-
ing the type and size and the char-
acteristics of the project best suited to
the needs of any given communiy.
There are, however, a few general
principles it will be well to keep in
mind:
1. Every structure to be dedicated
as war memorial should have beauty
and usefulness.
2. It should be so well built that it
will last for generations.
3. The site should be as accessible
as possible to the community it is to
serve.
4. Most important of all, a mem-
orial music facility, be it a band shell
or a music hall, should be planned with
an eye for maximum utility. It should
be acoustically perfect, implying the
necessity for selecting an architect
with full knowledge of the principles
of acoustics. People experienced in
music, such as the school music super-
visor, municipal band director, and
professional song leader should be con-
sulted also regarding efficient arrange-
ment of rehearsal rooms, dressing
rooms, storage and library space, stage
ize and audience seating arrangements.
5. If an endowed music organiza-
tion is planned careful thought should
be given to the selection of an able
director, providing instruments for
complete instrumentation, and making
provision for rehearsal space as well
as a place to perform."
Wurlitzer to Establish
Own Export Department
Official announcement has been made
by M. G. Hammergren, Wurlitzer Vice-
President and General Sales Manager,
that the North Tonawanda Division of
the Rudolph Wurlitzer Company will
establish its own Export Department
as of January 1st, 1946.
According to David 0. Lee, Wurlit-
zer Export Manager, the Department
will render direct support to Wurlitzer
customers and associates outside the
borders of the United States and ag-
gressively promote the sales of three
major Wurlitzer lines in world markets.
Products to be handled include Wur-
litzer Automatic Phonographs and re-
lated Auxiliary and Remote Control
Equipment, the new Wurlitzer Orga-
tron, and a yet-to^be announced line
of Automatic Soft Drink Vending Ma-
chines bearing the Wurlitzer name.
Mr. Lee was further quoted as stat-
ing, '*Major trade areas are today re-
ceiving careful analysis, and we ex-
pect to announce in the near future offi-
cial dealers and distributors in many
parts of the world. We are already re-
ceiving inquiries from many foreign
sources who are interested in repre-
senting us.
THE MUSIC TRADE REVIEW. NOVEMBER, 1945

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