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PREfeTO
May 22, 1920.
CHAMBER DRAWS ATTENTION
TO MENACING SITUATION
In Statement Just Issued Music Industries Chamber of Commerce Fears
Revival of Hurtful Policies Affecting Piano Industry.
In a statement issued by the Music Industries
Chamber of Commerce, May 17, attention is called
to a very menacing situation which threatens the in-
dustry. It is pointed out that there is evidently now
under way a definite campaign to revive the war-
time distinction between "essential" and alleged
"nonessential' industry for the purpose of curtail-
ing production in the latter group, and that this
plan has already produced tangible results in the re-
quest of the railroads to the Interstate Commerce
Commission, asking that body to grant priorities in
transportation and, if necessary, temporarily to sus-
pend the use of the railroads by some industries,
and, in what appears to be the policy of the Federal
Reserve Bank, to curtail credit in certain lines of
industry. The statement of the Chamber is as fol-
lows:
For the past week or two, there have been a num-
ber of indications, particularly in Washington, that
there is being revived the policy of arbitrarily mak-
ing a distinction between essential and alleged non-
essential industries, with the probable purpose of
artificially curtailing industries in the so-called "non-
essential'' class in order particularly to release the
present strain on the transportation system of the
country.
Although music cannot be considered a luxury
and may properly be ranked second only to such
vital articles as food and fuel, nevertheless, it
must be recognized that the present situation is a
serious menace to the music industry because defi-
nite attempts to place the music industry in the al-
leged nonessential class may be expected if the pol-
icy of curtailing certain industries is adhered to.
The policy of curtailing certain industries has al-
ready become apparent in a definite manner. On
Saturday, May 15, the railroads made a request to
the Interstate Commerce Commission that the emer-
gency power granted the commission under the
Transportation Act be exercised so that the present
car shortage would be relieved, and specifically re-
quested that the railroads be authorized to discrimi-
nate between commodities.
Shortage of Cars.
Undoubtedly, the shortage in freight cars is so
great, and so many of the cars are tied up at termi-
nal points through congestion arising from the re-
cent strike, that at times it will be necessary to give
preference to such vital necessities as food and fuel,
but the danger in the situation arises from the fact
that it is very easy to expand preference lists be-
yond the most vital necessities to the detriment of
other essentials. In particular, the danger arises
from the requests of the railroads for authority to
"postpone and delay the loading and moving of
other less important commodities including as and
to the extent it may from time to time be neces-
sary." Such policy may very likely lead in effect to
embargoes upon alleged nonessentials.
The danger from the activities of Federal Reserve
Banks in the way of curtailing certain industries ap-
pears to be more definite. It has been reported to
the Music Industries Chamber of Commerce that
the Federal Rf-serve Bank, of Kansas City, has al-
ready "curtailed loans on automobiles, jewelry, and
other luxuries"; and it understands that there will
be a meeting this week at which an attempt will be
made to induce the bankers of the country to adopt
the general policy of curtailing loans to so-called
nonessential or luxury industries.
Serious Situation.
The seriousness of this situation from the stand-
point of the music industry is second only to that
which faced it during the trying days of the war.
Recognizing this fact, the Chamber of Commerce
has already taken active measures to protect the
industry.
An appeal will be made to the Interstate Com-
merce Commission to limit any priority preference
necessary to the movement only to those vital ne-
cessities, food and fuel, and then only in such cases
as preference is absolutely necessary, and a protest
will be made against any policy of creating the arti-
ficial distinction between essential and nonessential
industry, and the application of special curtailment
measures against the former. It is expected also
that strong arguments will be presented to the Fed-
era! Reserve Board against the continuance of any
arbitrary practices as that understood to have been
taken by the Federal Reserve Bank at Kansas City.
The Chamber is also in active touch with other
trade associations in an attempt to awaken them to
the danger of the situation.
Committee Appointed.
President Richard B. Aldcroftt, of the Chamber,
has appointed from its directors the following com-
mittee, which is already active in investigating the
situation for the purpose of determining what ac-
tion the Chamber will take in the matter: Richard W.
Lawrence, Kohler & Campbell, New York City;
Frank E. Morton, American Steel & Wire Co., Chi-
cago, 111.; E. Paul Hamilton, M. Welte & Sons,
New York City; H. L. Willson, Columbia Grapho-
phone Co., New York City; Frederick K. Sunder-
raau, Bennett & White, New York City; E. F. Bit-
ncr, Leo Feist & Co., New York City.
Without question, some of the economic facilities
of the country, like the railroads, are almost at the
breaking point because they are not capable of meet-
ing demands- which industry is placing upon them.
However, it would be much wiser to enforce the
general curtailment in all industries, using any par-
ticular economic facility which is being over-taxed.
For Equal Curtailment.
With respect to credit, if there is any real rea-
son for a curtailment of credit all industries should
be curtailed to the same extent, and the brunt of the
burden should not be placed on a few lines of in-
dustry. If any discrimination should be made in
the type of credits to be curtailed, it should be those
credits obtained :for speculative purposes rather
than for actual production. This policy also raises
the question, "What is essential?" which our war-
time experience showed is best answered, "All busi-
ness is so closely connected that there are in effect
almost no 'nonessentials.' "
If the policy of curtailing a few lines of industry
only, is carried out, the situation is full of danger
to the entire country. By such action, large groups
of labor will be thrown idle. In many cases, entire
neighborhoods and towns will be idle. Being spe-
cialized workers, they will find difficulty in get-
ting other employment, thus will be bred social dis-
content, which the country cannot afford to risk at
the present time. Merchants and bankers whose
prosperity depends upon the earning power of the
mass of workers, will, in such sections which are
particularly affected, suffer to a ruinous degree.
The Result.
The revenue of the government will also be seri-
ously affected, as those industries which are most
likely to suffer curtailment first are the ones which
through excise taxes as well as income and excess
profits taxes contribute most heavily to the Federal
Treasury. The industries of the so-called non-
essential group have suffered worse than any others
during the war. Many are only now recovering
from the effects, while not a few have yet been un-
able to get back on full production. A return to
the policy of arbitrary curtailment of such indus-
tries will dissipate their working organizations, and
in many cases will undoubtedly result in liquidation
and absorption.
Every individual interested in the music industry,
from the manufacturer of supplies to the retailer of
musical instruments, should make this his problem
and should spread the idea in every way possible
in his locality, that the curtailment of a few lines
of industry is an unwise policy, and also preach the
doctrine that music has proved itself not to be a
luxury.
The representative of the manufacturers who
spoke on credits at the Thursday afternoon session
of the Supply Convention was Paul B. Klugh, pres-
ident of the Autopiano Company, New York.
Julius Brcckwoldt, of Julius Breckwoldt &
Co., New York, found it impossible to lead the dis-
cussion of "Maintenance of Proper Credit Condi-
tions in the Musical Supply Industry." Accord-
ingly, the committee on arrangements secured two
speakers: one to represent the supply trade and the
other to represent its chief customers—the piano
manufacturers. The former speaker was John C.
Wickham, and the latter, Paul B. Klugh.
President Otto Schulz, of the National Piano
Manufacturers' Association of America, who was
unable to attend the informal dinner Thursday,
asked J. A. Coffin to represent that organization
and speak on "Co-operation Between the Various
Sections of the Music Industries."
ABE'S EPIGRAMS
(Continued from page 3.)
It wasn't so very long before he was called upon for a second 25 per cent in-
crease, and this time he couldn't stand the pressure. His credit had become
strained; the business didn't warrant the large increase in pay, and before he knew
what was happening, the bubble collapsed.
The owl has gained its reputation for wisdom by its silence. The parrot is
considerable of a chatterbox; but you never heard anyone say "he is as wise as a
parrot." An automobile which is well loaded rides much more silently and
smoothly and will keep the road better when it is well loaded. It will not make
nearly so much rattle and clatter doing it either. It is the empty wagons which
rattle. Again, we are told that a wise head keeps a close mouth, and yet no one
wants to be "as mum as an oyster."
A certain amount of frankness and candor is desirable, but it is always unwise
to repeat business facts which do not concern other people and which may be misun-
derstood. As a rule, the other fellow likes to hear all we will reveal about our inti-
mate affairs, only in order that he may go on and tell what we have said in an enter-
taining way to other people. Many folks enjoy the pose of being in the confidence
of people of affairs, and so before we know it, that which we have thought was
known only to those whom we supposed we could trust, is common property.
Some business men have the unfortunate habit of discussing details over the
telephone. You never know who may be "listening in," or what wires may get
crossed. A singular case of this kind recently came to notice where two men at a
distance in a large city, discussed an important business situation. By some strange
combination of mechanical conditions, the man whom they would have least desired
it, heard every word over his own telephone, having by strange coincidence, taken
down the receiver at that moment. He recognized the voice and listened. The in-
formation he learned caused him to have nothing to do with the proposition at all.
Again, a small concern which did not feel equal to buying a good-sized business
safe, left its books lying about upon an open desk. This company was making
money and doing it in a modest, unostentatious manner. An employe having access
to the books, gave out some of the figures which he discovered there, with the re-
sult that competition came and sat down directly across the street. It was compe-
tition which it was hard to beat, and our trusting friend found that his patrons were
attracted to the newer place which had more money and could make a bigger show.
The flower of his prosperity was nipped in the bud.
Remember then, that it is not well to speak of secret matters in a field that is
full of little hills.
LESTER G. HERBERT.
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