Music Trade Review

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the piano manufacturers do. There
are over 3000 active piano dealers in
the United States that employ help
and unless piano are made available
to them, they will be compelled to
discontinue. In addition to this, there
are many, many thousands of per-
sons who earn their livelihood as
music teachers (private and in
schools), as musicians, as artists and
as assistants to these people, so that
the employment possibilities of the
piano industry are extremely large.
"Basically, the key to the solution
of the troubles of our industry is not
being able to secure the greatest
amount of supplies. If control is re-
moved, piano suppliers would have
assurances of not losing money to
start and as their production increas-
es, I know that they would surely re-
duce their prices. On the other hand,
piano manufacturers, receiving a
greater amount of piano supplies,
would be able to operate at lower
prices, due to the increased volume of
production. It is my settled opinion
and the opinion of our industry that
removal of the piano and piano parts
industry from the control of OPA
would bring about complete produc-
tion with competition that would ulti-
mately result in lower prices, with the
result that the nation would feel the
effect of full employment in piano
supply plants, piano plants, and in all
piano retail stores and the many allied
activities of the piano industry.
"As President of the National Piano
Manufacturers Association of Amer-
ica, Inc., I am appealing to you for
your active assistance in bringing
about these desirable results."
OPA's New Ruling
Between the time that Mr. Bond
wrote this letter and when he received
a reply, the Office of Price Adminis-
tration issued the following release
regarding Amendment No. 2 and
Amendment 30 to Order A-2, under
M.P.R. 188, effective July 30, 1945:
"To permit continued production of
new pianos and parts, the volume of
which has been seriously cut by short-
ages of supplies, materials and man-
power, manufacturers may in some
circumstances apply for price increas-
es to cover total current manufactur-
ing and selling costs. The action is
effective July 30, 1945.
"Piano manufacturers were released
from war work in the summer of 1944,
OPA said, but were able to reconvert
only on a very limited scale at that
time because of shortages of parts,
materials and skilled labor. In October
1944 OPA granted a general 13 per
cent increase on account of increases
in costs since discontinuance of piano
manufacture in 1942. Additional indi-
vidual adjustments were also author-
THE MUSIC TRADE REVIEW, AUGUST, 1945
ized for manufacturers who could
show that current ceilings were below
total 1941 costs plus increases in
straight-time factory wage rates and
materials costs since that time.
"However, limiting factors on pro-
duction—such as continuing activity
on war contracts let to parts manufac-
turers, more severe restrictions on
hardwoods and other shortages of ma-
terials—have persisted for the last
nine months, and producers have been
unable to get volume on account of
these war shortages. This condition
shows no sign of immediate improve-
ment, OPA said. Several producers
who are mainly dependent on their pi-
ano sales have warned that they will
be force dto discontinue production
unless further increases are granted.
Most of the producers of pianos and
parts now in operation are small firms
without material reserves, OPA said.
"The action will permit increases
up to total costs of manufacture and
sale if the manufacturer can show:
(1) That he has produced pianos since
February 26, 1945; (2) that his piano
operations have been at a loss for the
90 day period preceding the date when
he files the petition for a price in-
crease, and (3) that existing ceilings
are below total costs calculated on the
basis of the largest volume of produc-
tion now possible to him."
Tells of Dealer's Plight
When the reply to Mr. IVond arrived
from Congressman Patman, it ex-
plained what the OPA had decreed
which is contained in their release
above. To this Mr. Bond replied:
"Thanks for your letter of July 23d,
which I read with a great deal of
interest.
"I am familiar with the Proposed
Order that OPA is suggesting. I am
also familiar with the price increases
granted by OPA to Lester and Pratt,
Read. However, I wonder whether
you know the conditions under which
the Lester order was granted and
what it will mean to the piano deal-
ers of America, who are surely small
business.
"Under Order No. 2525, there is a
schedule of mark-ups which was set
by OPA as the minimum amount of
mark-up that could be allowed to
dealers so that they exist without loss.
This mark-up was protested as being
too small by the manufacturers and
the dealers at the time it was issued
to no effect. However, under this
Order, the mark-up on pianos of the
grade on which OPA set the price for
Lester's should be 85%. However,
the Order cuts the dealer's margin to
58%, which makes it impossible for
him to operate even at a break-even
basis. This seems to be the policy
of the OPA and it is absolutely un-
fair. They give increases absolutely
needed to the source of supply but
the closer it comes to the customer,
the more they cut the margin so as
to hold the price at the 1942 level.
"At a meeting of our Advisory
Committee, we were told very frankly
that we are not the only industry that
is suffering but that there are at
least a dozen industries that are in
just as bad, if not worse shape than
we are and that it was the intention
to hold the line at retail at 1942
level. My reply to this was, 'if you
hold the retail line at the 1942 level
and wreck a dozen industries in Amer-
ica, you will throw many thousands of
people out of employment, cause a
depression, and then holding the 1942
level will not be of any account to
any of us.' America has never been
happy except under conditions where
we had rising prices, full employment
and full purchasing power and this
is not inflation. Tremendous in-
creases have been granted the farm-
ers, the food processors, and other
industries entering into the cost of
living; wages have been increased;
the cost of raw materials has been
tremendously increased but the at-
tempt is being made to hold the small
manufacturers and the small dealers
to the 1942 level in spite of all these
increases they must pay. If this con-
tinues, there can only be one result
and that is that manufacturers of
items on which a profit cannot be
made will be discontinued and we will
have shortages such as we are having
in some of our cost of living items.
"My previous letter did not go into
this matter but was an appeal for
OPA to remove the piano industry
from price control and in that letter
I gave you five reasons which I think
you should give your serious consid-
eration and help the piano and piano
parts industry to convince OPA that
this should be done.
Individual Appeals
"I have taken your advice and have
advised the members of our Associa-
tion regarding individual appeals.
However, if appeals are granted on
the basis that they were granted to
Lester's, it will not bo very much
good because without the dealer or-
gan izjiition being allowed a 'living
wage,' there cannot be many sales of
our product, which helps so much
toward the cultural improvement of
every American.
"I thank you for your suggestion
of keeping you informed on the status
of our industry and assure you that
this will be done."
Leslie L. Steward, president of the
Columbus, 0., Music Merchants Asso-
ciation, sent a telegram to Senators
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