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Piano Dealers Face
OP A Grants New Price Ceilings
T
HE situation in respect to price
ceilings on supplies and pianos
seems to be becoming more in-
volved than ever. After a meeting
which was held in Washington on
Wednesday, June 27, at which the ad-
visory committee of the piano industry
appeared before the O.P.A., an in-
creased price ceiling was granted on
piano actions to Pratt, Read & Co.,
Deep River, Conn. The new price ceil-
ing is approximately 64% above 1941
prices. This was verified in a tele-
gram from the O.P.A. to Pratt, Read
& Co. on July 12.
A short time ago, the Lester Piano
Manufacturing Co. in Philadelphia
was granted a 995- increase over the
13% already granted piano manufac-
turers. This was not adequate, and
the Lester piano factory was shut
down.
At the time that this increase in
percentage was granted, the O.P.A.
advised the Lester Piano Manufactur-
ing Co. that the 9% would have to be
absorbed by the dealer. The situation
therefore is such that should manufac-
turers of supplies all receive an in-
crease in their ceiling prices, which is
most likely, the price of pianos will
soar to such an extent that it will be
absolutely impossible for dealers to
operate provided the O.P.A. sticks to
the ruling that dealers must absorb
the extra percentages in their retail
price.
Anent this situation, the REVIEW has
received the following letter from
Richard W. Lawrence, chairman of
the Board of Directors of the Aeolian
American Corporation and also a let-
ter which was written to Mr. Lawrence
by Congressman Ralph A. Gamble
from the 28th district in New York.
Mr. Gamble is a member of the com-
mittee of banking and currency. This
letter was in reply to one which Mr.
Lawrence wrote to him regarding the
critical situation in the piano industry.
Mr. Lawrence's letter to the REVIEW
is as follows:
July 10, 1945
MA Oarleton Chace, Editor,
Music Trade Review,
1270 Sixth Avenue,
New York, N. Y.
Dear Carleton:
Attached is copy of a letter that T
received from a good friend of mine in
the House of Representatives, Ralph A.
Gamble, who represents the 28th New
York District, larg-ely located in West-
chester County. He is one of the con-
8
pressmen I wrote during the period
when the resolution was before the
House extending- the life of the OPA.
His letter is chiefly valuable as in-
dicating that the rank and file of con-
gressmen on both sides of the aisle are
alert to the damage that can be caused
our free enterprise system by the arbi-
trary controls of the OPA, especially in
the matter of resumption of the produc-
tion of peacetime products.
Another reason for sending this letter
is that it indicates the wisdom of your
editorial in the June issue—"BETTER
CONTACT YOUR CONGRESSMAN."
Kindest regards,
Sincerely,
(Signed) Richard W. Lawrence
In his letter to Mr. Lawrence, Con-
gressman Gamble stated under date of
July 4th:
Mr. Richard W. Lawrpiirei
Chairman of the Hoard.
Aeolian American Corporation,
270
MSHH.SOII Avenue,
New York 1«, \ e w York.
Dear Mr. Chairman:
AN a member of the Committee on
Banking anal Currency I was so nuieh
in the throes of the Rretton Woods
Agreements and then the extension of
the price control legislation that I have
not had an opportunity to answer your
recent letter enclosing a copy of the
letter which Mr. White sent to Senator
FulbriKht.
You also asked for the names of the
Democratic members of the committee.
I would have sent these HIOIIK but I
knew, and my feelinjss were borne out
in this regard, that the Democratic
members of the Hanking and Currency
Committee were working under orders
of the Administration and had no idea
whatsoever of allowing any amendments
to be made to the price control bill In
the committee and on the floor if they
could control the situation. They sim-
ply mowed us down in the eoiiinilttete
and put out a continuing resolution.
When the bill got to the floor it was
a different matter and for four days
we had a pretty much knock down,
drag out fiijiht as you have probably
seen in the papers. Amendments were
made to the bill along food lines but we
were not able to do anything whatso-
ever along profit or reconversion lines.
One of the reasons the Republicans
stead of a year was that we wanted to
have an opportunity next fall t<» liitok
this entire situation over again in the
light of the war situation, having in
mind particularly that OPA should be
checked up by that time because we
anticipate the fiasco which they are
KoiiiK' to make on the rerunvcrsi.-in but
again we were mowed down.
I believe that the present philosophy
of the Office of Price Administration is
one whereby they are now endeavoring
to regulate profits rather than price.
I think it is a very dangerous situation,
particularly as it involves the entire
reconversion program of industry in
this country. Representative Crawford
introduced, as you know, an amendment
to the OPA hill in the committee and
again on the floor and in both instances
was defeated by the Administration
forces. I supported his amendment both
in the committee and in the House. I
am sorry that we could not have gotten
that in the law and nailed it.
I am satisfied that unless OPA
chancres their present line of thinking
along; these lines that the Congress is
going to pretty promptly crack down
on them because I know from the dis-
cussions in the committee that the mem-
bers have this situation very much in
mind.
Very sincerely yours,
(Signed) Ralph A. Gamble
In respect to the present situation,
C. K. W. Foster, Vose & Sons Piano
Co., wrote that he felt pianos should
have always been on the essential list
because as he said:
"Next to religion, good music has the
greatest uplifting and spiritual influ-
ence in our lives. Music has been prov-
en an essential by every psychiatrist in
the country in his treatment of the
tremendous increase of nerve cases and
it should be recalled that the piano
has been awardded the official recogni-
tion of the Neuro Psychiatric Board as
a factor in this respect."
Critical Position of the Dealer
Before Pratt, Read & Co. was grant-
ed this increase, W. Lee White, treas-
urer of the American Piano Corp.,
New York, had made the following
comments in a letter to W. A. Mills,
secretary of the National Association
of Music Merchants:
••If Pratt. Read & Co. do not close
iloivn but >i<'t their -to per cent or most
of it. then the piano manufacturers are
worse oft" than they are nnn because all
of them u.siiiK actions from Pratt, Read
will have to absorb the increase in price
of actions ^milted Pratt. Read, which
will put the in all in a deeper hole than
they are now in. I do not believe that
riiihf now is the time to do it because
Congress is so busy considering inter-
niitional matters before it adjourns but
the minute Congress reconvenes in late
August the piano industry has got to
really put the pressure on or there
won't be any piano industry in 104(> and
]J>47 because O.P.A. policies are fixed
anil pretty nearly inflexible in spite of
the pap that they issue for publicity
purposes.
"One thing came out of the session
the manufacturers had with O.P.A. in
Washington last week that is of par-
ticular interest to music merchants.
O.P.A. made it very plain that it was
their definite policy now and would be
until such time as the supply of civilian
merchandise catches up with the de-
ITurn to page
16, column 1)
THE MUSIC TRADE REVIEW, JULY, 1945