Music Trade Review

Issue: 1945 Vol. 104 N. 8

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
New OPA Wholesale Price Ruling on Pianos
Amendment 2 to Revised Order
2525 Under MPR 188
This amendment changes paragraph
(d) of the Order as originally issued to
read as follows:
(d) Additional increases for manufac-
turers. (1) Any manufacturer who be-
lieves that his maximum prices, as in-
creased by this order, do not equal his
total costs in October 1941 adjusted for
increases in straight time factory wage
rates and direct and indirect material
prices, may apply to the Office of Price
Administration, Wash. 25, D. C, for an
adjustment of his maximum prices. The
Administrator will grant an adjust-
ment to any such manufacturer if he
finds that the manufacturer's total costs,
when adjusted in accordance with the
method of adjusting' total costs em-
ployed by the Administrator in deter-
mining" the extent of the increase grant-
ed to the industry, are higher than the
manufacturer's maximum prices estab-
lished under this order. The adjustment
in the manufacturer's maximum prices
will be granted in amounts sufficient to
permit the recovery of total costs as
thus adjusted by the Administrator.
(2) A further adjustment in maximum
prices beyond the amounts provided for
above may be allowed by the Adminis-
trator on application to the Office of
Price Administration, Washing-ton, D.
C, if the manufacturer can show:
(i) That he has manufactured pianos
since February 2fi, 1945, and
(ii) That his piano manufacturing
operation has been conducted at a loss
for the 90 day period immediately pre-
ceding- the date of his application and
that there is little prospect of his profit-
able operation within he 90 days follow-
(ii) A further adjustment in maxi-
mum prices beyond the amounts pro-
vided for above may be allowed by the
Administrator on application to the
Office of Price Administration, Wash-
ington, D. C, if the manufacturer can
show:
(a) That he has manufactured piano
parts since December 7, 1944, and
(b) That his piano parts manufactur-
ing- operation has been conducted at a
loss for the 90 day period immediately
preceding- the date of his application
and that there is little prospect of
profitable operation within the 90 days
following- the date of his application for
adjustment, and
(c) That the manufacturer's maxi-
mum prices (including- the adjustment
provided above) are less than his total
costs to make and sell when his volume
of production is as high as the avail-
ability of materials, labor, supplies, and
plant facilities permit.
The greatest adjustment which will
be allowed will be one increasing- the
manufacturer's maximum prices up to
his total costs to make and sell as cal-
culated by the Administrator. The ad-
justments may be in smaller amounts
if it appears that the manufacturer's
losses on his piano parts operations are
offset in whole or in part by profits
resulting
from
other
manufacturing-
operations.
Orders
allowing-
adjust-
ments under this paragraph (a) (18)
(ii) shall be effective for a period of
90 days after issuance but may be fur-
ther extended on application of the
manufacturer if it appears that his total
costs to make and sell are not below
the adjusted prices.
itiK the date of his applicatinn for ad-
justment, and
(iii) That the manufacturer's maxi-
mum prices (including- the adjustment
provided above) are less than his total
costs to make and sell when his volume
of production is as high as the avail-
bility of materials, labor, supplies, and
plant facilities permit.
The greatest adjustment which will
be allowed will be one increasing- the
manufacturer's maximum prices up to
his total costs to make and sell as
calculated by the Administrator. The
adjustments may he in smaller amounts
if it appears that the manufacturer's
losses on his piano operations are off-
set in whole or in part by profits re-
sulting- from other manufacturing- oper-
ations.
Orders allowing- adjustments
under this paragraph (d) (2) shall be
effective for a period of 90 days after
issuance but may be further extended
on application of the manufacturer if
it appears that the total costs to make
and sell are not below the adjusted
prices.
(3) If a manufacturer is permitted a
further
increase in maximum prices
under the provisions of this paragraph,
the provisions of paragraph (e) may not
be used to compute new maximum re-
tail prices. In such cases, orders will
be issued establishing revised maximum
prices for sales at wholesale and at
retail.
This amendment is effective the 30th
day of July 1945.
Amendment 30 to Order A-2
Under MPR 188
Order A-2 issued under par. 1499.159b
is amended in the following- respect:
A new paragraph (a) (18) (ii) is add-
ed to read as follows:
This amendment is effective the 30th
day of July 1945.
have been given permission to go
ahead and make pianos, this is the
(Continued from page 9)
Harold T. Burton and Robert A. Taft situation:
"The present ceiling price of 13%
and Congressman John M. Varys in
over March 1942 does not permit man-
which it was stated:
"Members of our organization pro- ufacturers to break even.
"Legal ceilings on most piano mate-
test recent action of OPA in setting
present ceiling of thirteen per cent rials and labor are up 30% to 50%
over March Nineteen Forty Two in the over the base period. You cannot buy
pricing of new pianos. Piano materials at such prices and sell at only 13%
and labor costs have advanced from over the base period.
"Most of the piano manufacturers
thirty to fifty per cent over the base
period. OPA pricing policies in the are through with their war contracts
piano industry has hindered reconver- and are now in position to manufac-
sion and have forced several manufac- ture pianos, but they are closing up
turers to cease production. We urge their factories and letting their men
you to contact OPA Deputy Adminis- go, and the piano dealer is in desper-
trator Brownlee and request additional ate straits today. If this situation is
allowed to go on very long there will
relief."
Another letter sent to the Senators be no more pianos manufactured, and.
and Congressmen from Connecticut by our concern, which has been in busi-
ness for over 75 years, will not be able
Raymond Hemming of the Loomis to exist in any such situation as this."
Temple of Music, New Haven, Conn.,
stated:
"Dura-Dri" a New
"Cannot something be done for the Remedy for Sticky Actions
piano industry so that a change may
A new product used to damp-prof
be made in the ceiling price of pianos? (tropicalize) piano actions, was dem-
"The piano dealers the country over onstrated recently for Army personnel
have been struggling to stay in busi- and members of the piano trade by
ness ever since the war started, and R. J. Appleton, who developed the
no complaints have been made, and damp-proofer at the request of the
now that the piano manufacturers
LETTERS TO CONGRESS
12
Army Special Services.
The new product, the result of chem-
ical war research will soon be put on.
the market by the R. J. Appleton Co. r
157 E. 56th St., Brooklyn 3, N. Y. It
is called "Dura-Dri" because it is
claimed that when properly used on
action centers and keys, it perman-
ently frees these points from sicking.
"Complaints had started to come,"
said Mr. Appleton, "that pianos in the
C.B.I, theatre had developed sticking
keys."
The new material is applied with an
eye-dropper. The application takes
from 10 to 20 minutes. In the demon-
stration by Mr. Appleton, treated and
untreated actions were immersed in a
tank of water and allowed to soak
for 15 minutes. When the actions were
withdrawn, the Dura-Dri processed
actions swung freely. The untreated
ones stuck solid. "Tests indicate that
Dura-Dri is a permanent damp-proof-
er and the trade is looking forward to
the use of this product when army
demands fall off," said Mr. Appleton.
Mr. Appleton has been tuning and
repairing pianos for many years and
during the past six years has serviced
all the pianos in Radio City Music
Hall, New York.
THE MUSIC TRADE REVIEW, AUGUST, 1945
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
Music Merchants Urged to Protest
OPA "Squeeze" by Pres. E. R. McDuff
HE "squeeze" on the retail mer- formation of a task committee was be presented . . . It has been re-
chant which is now proposed by authorized by the larger group to quested by this task committee
ask their
the Office of Price Administra- complete a study of absorption with- that all associations
tion is being vigorously protested by in 30 days. The committee is asked members to write Chester Bowles,
all types of retail merchants. The to make a statistical report on the c o OPA, sending a copy of their
method pursued in granting piano limits to which absorption may be letter to the association office, ex-
manufacturers higher ceiling prices carried and to study the effect of the pressing dissatisfaction with the
and then cutting the dealer's margin policy on the postwar effectiveness reconversion formulas ts they
affect retail stores.
from 89% to 58% is considered a of distribution.
" . . . I think it is highly neces-
In accordance with this E. R. Mc-
criterion of what will happen all
along the line of all types of musical Duff, president of the National Asso- stary that the retailers join in ex-
instruments, radio, radio - phono- ciation of Music Merchants, has sent pressing their belief that the re-
graphs, phonograph records, record out the following appeal to the mem- tail reconversion pricing formula
cabinets, piano benches and sheet bers of the Association as well as to is highly unfair to the retailer
music. At the meeting of 32 retail all retailers in the music business and their inability to operate
consultants which took place in Wash- urging them to tell OPA what effect their businesses thereunder."
ington recently with OPA officials this policy will have on their busi-
NAMM's Protest to OPA
the latter stated that they could not ness, to quote actual figures where
To point out to the OPA the fallacy
consider any plan that failed to pro- possible and to send a copy of the of its pricing edict for music merchants
expense ratio table has been pre-
vide for substantial absorption and letter to the headquarters of the Asso- an
pared by William A. Mills, executive
the question became one of how much ciation in Chicago. His letter is as secretary of the National Association
(Turn to page 16)
retailers can stand. Furthermore, follows:
when a request was made for 30 days
"This matter of absorption is
to present a detailed statement on going to be a very difficult one.
proper pricing policies OPA replied You have a tentative draft of
that it could not wait; that it had what the OPA proposed and
a commitment to produce reconver- from that you can readily see
sion formulas at once. However, the that it applies to phonograph rec-
ords, sheet music, record cabi-
nets, piano benches, radios, in
fact any commodity that a music
store handles; and I think the
treatment we are getting at the
present time on pianos is indica-
tive of what we are facing.
Such makes as
"The task force which has been
STEINWAY
assigned the job of replying to
MASON & HAMUN
the tentative plan and offering a
GULBRANSEN PIANOS
CHICKERING
more constructive plan to the
OF TOMORROW
KNABE, BALDWIN
OPA has designated a steering
of course will be
GULBRANSEN
committee and this committee is
"America's Smartest Piano Fashions 1 *
STORY & CLARK
authorized to obtain competent
and others.
counsel
and organizations will
Grands, Spinets, and
help
them
prepare the reply to 816 N. KEDZIE AVE., CHICAGO 51. III.
Uprights.
Correspondence, or
inspection invited.
T
THE UTMOST
IN QUALITY
USED PIANOS
eOLBRANSEN COMPANY
S. L. CURTIS, Inc.
240 West 55th Street
New York City 19.
S. L. Curtis, Largest and Oldest Used
Piano Dealer in the United States,
THE MUSIC TRADE REVIEW, AUGUST, 1945
mim\u\,
PECK & CO.
Master piano craftsmen
for 103 years
HARDMAN AND
HARRINGTON GRANDS
AND CONSOLES

'MINIPIANOS'
33 West 57th Street
New York

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