15
PRESTO
July 11, 1925.
•!•=•-•=•::•::•=•::•::•=•=•=•:•=•=•:•=
TURN IN THE TIDE
OF RADIO TRADE
Overproduction and Abnormal Growth Causes
Several Companies to Strengthen Connec-
tions, While Many Mushroom Con-
cerns Give Up the Struggle.
AJSI
REPRINTED BY REQUEST
ARTISTIC
JPXAHO
IN EVERY
DETAIL
HADDORFF PIANO CO.
ROCKFORD,ILL.
Wholesale Offices:
N«> York CM
110 W Uni S«
Chicago
410 S. Michigan A».
S*n Fr«>- f '
SI I ( .liUrnii Si.
Schaff Bros.
Players 9 nd Pianos have won their stand-
ing with trade and public by 54 years of
steadfast striving: to excel. They repre-
sent the
LARGEST COMPETITIVE VALUE
because <«f their beauty, reliability, tone
and moderate price. They are profitable
to sell and satisfactory when sold.
Brighten Your Line with the
SCHAFF BROS.
The Schaff Bros. Co.
Established 1868
Huntington, Ind.
The Good Old
SMITH & NIXON
Pianos and Player Pianos
Better than ever, with the same
"Grand Tone In Upright Case."
Grands and Players that every deal-
er likes to sell, for Satisfaction and
Profit,
Smith & Nixon Piano Co.
1229 Miller St., Chicago
Sales Go from $2,000,000 in 1920 to $300,000,000 irj
1924—2,500,000 Sets Used in
Country.
It is probable that no other interference with the
sale of pianos has been so obvious as that of radio.
Piano dealers almost everywhere have been dis-
turbed by it, and the question of whether to add radio
to the store departments has troubled hundreds of
active piano houses. Therefore, there are few sub-
jects more important to the piano trade at this time
than the trend, and probable future of radio.
In the New York Times of Tuesday, June 30, an
article appeared in which the piano dealers may find
their answer. It is filled with significance to both
the piano and radio industries. Consequently the
article is reproduced here in full.
Weeding Out Process.
Like all new industries, the radio business is pass-
ing through the first
stages of the "weeding out," the
usual happening w T ith an industry whose growth is
for the time being abnormal owing to the enthusiastic
public reception of its products. About twenty-five
companies were born in New York in the last twelve
months, while the "radio fever" was at its height,
but whether they and others formed previously will
all survive a year hence is said to appear from recent
indications as improbable.
Wall Street a few months ago was witnessing a
radio stock a day, and with each new stock offered to
the public there was reared a new company engaged
in the manufacture and sale of receiving sets. It is
said now that the public, being equally receptive re-
garding radio company stocks, probably got more
than they wanted.
In the West Also.
What has been true of the Eastern companies in
this connection has also been true of the companies
established in Western territory. In New York the
public is reported to have absorbed approximately
5,000,000 new shares of radio stock offered in the last
year, and present quotations show a loss from the
original prices of close to $100,000,000. A more or
less similar situation is said to have characterized the
stock values of the Mid-Western and Western radio
companies. Overproduction, followed by more cau-
tious buying on the part of the public, is said to have
astonished many promoters of new companies, and
caused widely advertised sales of receiving sets at
prices sometimes at half or less of the price prevail-
ing a few months ago.
There is a disposition in the trade at present to get
sold out before the dull summer period arrives. It
is estimated that 750,000 to 1,000,000 sets have been
offered at greatly reduced prices in what is referred
to as the New York and New Jersey districts alone.
Of these, it is said that 500,000 or more have been
bought by the public at the cut sale prices.
The so-called "weeding out" is becoming more
manifest as the public's demand for receiving sets
slackens. At the same time some companies, whose
merchandise has established them on a relatively per-
manent basis, are said to be coming through in good
shape. Some promoters are being eliminated alto-
gether, with the "mushroom" companies they have
been sponsoring. Other companies are undergoing
reorganization with a view to stabilizing their sales
and business and retaining their places in the in-
dustry.
Enormous Growth.
On January 1, 1920, it was estimated that there
were only 5,000 receiving sets in the United States,
these largely in the hands of experts, and sales an-
nually up to that time of receiving sets and parts did
not exceed $2,000,000 a year In 1921 sales showed an
increase of 150 per cent. In 1922 the public enthu-
siasm began to assume large proportions and sales
were $60,000,000. Sales for 1923 totaled $120,000,000,
and the total for 1924 was between $300,000,000 and
$350,000,000. Estimates of sales for this year put the
total at $450,000,000.
The end of last year found approximately 2,500,000
radio receiving sets in use in the United States,
against 12,000,000 automobiles and 9,000,000 phono-
graphs. These figures undoubtedly, it is said, offer
an excellent idea of what possibilities there are for
the extension of the radio in the country. Price cuts,
with unfounded rumors in regard to new invention
possibilities, have had something to do with restrict-
ing sales so far this year, according to those in the
industry. Beyond this, however, is a somewhat
natural disposition of the public to lose some of its
enthusiasm.
Why Enthusiasm Wanes.
It was pointed out that the field of greatest poten-
tiality for the industry may soon lie in the strictly
intercoinmunicative phase of radio telegraphy. Mean-
while, the present halt in abnormal sales activities is
being utilized for consolidating the positions of the
various manufacturing companies and stabilizing the
trade, so that it will be ready when the busy season
opens in the fall.
One radio manufacturer recently remarked that if
companies owning patents wanted to enforce their
rights there would be thousands of infringement cases
cluttering the courts throughout the world. The pat-
ent matter constitutes another unsettling phase in the
industry. It is believed, however, that the existing
litigation over patents will soon be settled and the
patents so allocated as to benefit the industry as a
whole, although it has been suggested that many such
patents probably will run out or expire before they
can be adjudicated.
Despite its troubles, common to a new and lusty
industry with an unquestionably interesting future
ahead, there is declared to be abundant room for ex-
pansion in manufacturing and sales activities
NEW WEST VIRGINIA FIRM.
The Point Pleasant Music Shop, Point Pleasant,
W. Va., has opened up a general music store where
a full line of musical instruments and accessories
will be carried. E. S. Matheson, manager of the firm,
has had fifteen years of varied experience in prac-
tically every phase of the music business. Baldwin
pianos and players and C. G. Conn instruments will
be handled.
QUALITY
in Name and in Fact
TONE, MATERIALS, CONSTRUCTION,
WORKMANSHIP, DESIGN—all in ac-
cord with the broadest experience—are
the elements which give character to
Bush & Lane Products.
BUSH&LANE PIANOS
BUSH & LANE CECILIAN PLAYER PIANOS
take high place, therefore, in any com-
parison of high grade pianos because of
the individuality of character which dis-
tinguishes them in all essentials of merit
and value.
BUSH & LANE PIANO CO.
Holfond, MIOIL
DECKER
WiJ EST. 1856 CL SON
Grand, Upright
and
Welte-Mignon
(Licensee)
Reproducing
(Electric)
Pianos and Players
of Recognized
Artistic Character
Made by a Decker Since 1856
099-703 East 135th Street
New York
WILLIAMS
PIANOS
The policy of the Williams House is and always
has been to depend upon excellence of product
instead of alluring price. Such a policy does not
attraot bargain hunters. It does, however, win the
hearty approval and support of a very desirable
•nd substantial patronage.
U/IIIIAMQ Maker* of Williamt Pianos,
WILLIAMS E p w o r t h P i a n o . a n d organ.
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