Presto

June 18, 1927.
PRESTO-TIMES
THE CONDITIONAL
SALES CONTRACT
The Character of the Forms Varies in Every
State in the Union and the Binding
Nature of the Contracts
Also Differs.
FIND COMPLICATIONS
While in Some States Processes Are Simple, Others
Have Contract Forms That Suggest Annoy-
ing Complexities for Dealer.
By C. J. ROBERTS,
Baltimore, President of the National Association of
Music Merchants.
Under the rule of common law, conditional sales
contracts are valid in every state and territory in the
Union, as to the original contracting parties, without
recording or tiling. In many states no recording or
filing of conditional sales contracts is required even
to hold title as against third parties. Where such
satisfactory conditions exist, it is quite plain that all
efforts to change the law should be resisted. It is
the simple, honest, man-to-man way to do business.
In such states the installment business, so far as the
contract is concerned, is simple. You enter into an
agreement with your customer, the agreement is put
in writing as a memorandum. Your customer either
eventually pays for the merchandise or you repossess
it.
In other states the laws have become complicated.
The necessity for recording or filing arises. Ordi-
narily this is intended as notice to "innocent" third
parties, and if properly done affords protection with
some exceptions.
The Exceptions.
Because of these exceptions and because the laws
of the various states differ so widely the American
Bar Association and other organizations have advo-
cated the enactment in all states of a uniform con-
ditional sales contract law. Such a law, so-called,
has been put on the statute books of a number of
states, but, even though termed "uniform," it varies
considerably in some details in the states in which it
has been enacted.
In states where a conditional sales contract is valid,
without recording, or filing, as to the original parties,
and affords protection from all other parties, the situa-
tion from our standpoint is perfect and should be let
alone. Usually laws enacted for the protection of
"innocent" third parties are invoked in the interests
of crooks. Too often laws intended to benefit the
honest man become the refuge of the criminal, or
those enacted to curb the criminal result frequently in
ensnaring the innocent.
Nature Is Various.
I will not attempt an analysis of the conditional
sales laws of the various states, for it would be im-
possible in the short time allotted me. even if I were
capable of doing it, but to show briefly how very far
we are away from anything like uniform laws as to
conditional sales in the various states, I call your
attention to a comparison of certain features of con-
ditional sales laws as to the various states according
to the authorities which I have hastily consulted,
which, however, are not entirely up to date, and which
in a number of cases may have been changed by
recently enacted laws.
Easy in These States.
In Arkansas, California, District of Columbia,
Idaho, Indiana, Louisiana, Massachusetts, Michigan.
Mississippi, Nevada, Oregon, Rhode Island, Tennes-
see and Utah, conditional sales contracts do not have
to be acknowledged, recorded or filed in order to hold
title.
Requirements Here.
In Alabama, Arizona, Delaware, Kansas, Maine,
Maryland, Massachusetts, Michigan, Minnesota, Mon-
tana. Nebraska, New Jersey, New York. Ohio, Okla-
homa, Pennsylvania, South Dakota. Texas, Vermont,
Virginia, Washington, West Virginia, Wisconsin and
Wyoming, it is necessary for a conditional sales con-
tract to be recorded or filed to hold title as against
third parties, though it need not be acknowledged or
proven.
In Georgia, Kentucky, Mississippi, Missouri. New
Jersey, North Carolina, North Dakota. South Caro-
lina and South Dakota, conditional sales contracts
must be recorded or filed to hold title as against third
parties and must be acknowledged or proven to be
recorded or filed.
In Florida, Iowa and New Mexico, either the
vendor or vendee must acknowledge in order that a
conditional sales contract mav be recorded, and it
must be recorded to hold title as against certain third
parties.
In Colorado, Connecticut, District of Columbia and
New Hampshire, a conditional sales contract to hold
title as against third parties must be acknowledged in
person by the vendee and be recorded or filed.
Poor Protection.
In Illinois and Louisiana, the extraordinary condi-
tion has existed that, even though a conditional sales
contract might be acknowledged and recorded, no pro-
tection was afforded as against third parties. There
have been some decisions to the contrary, and it may
be that the situation has been clarified.
In states where the use of a conditional sales con-
tract is not satisfactory other legal instruments, such
as leases, chattel mortgages, etc , are used.
In some jurisdictions where recording or filing is
too difficult or expensive, merchants simply secure
contracts, do not record or file, but take chances on
the honesty of their customers and try to exercise
good judgment in granting credits. I have even
known one moderately successful merchant to operate
without securing any contract at all, depending al-
most entirely upon his judgment of credits. Thought-
ful handling of credits and careful, intelligent methods
of collection will do more to keep a merchant out of
trouble and make him prosperous than all the laws
that could possibly be thought of.
Growth of Instalment Plan.
Up to a comparatively few years ago only a limited
number of commodities were sold on instalments—
principally articles of long life. In recent years 'the
deferred payment plan of selling has been extended
to include almost any and everything that costs more
than the weekly or monthly income of the average
family. Articles or commodities of short life are sold
on comparatively long time. This has helped to bring
about a serious state of affairs. The volume of such
business is tremendous. It is causing serious alarm
in business and financial circles. It is getting out of
bounds.
Good Commercial Security.
The best sort of commercial security or collateral—
the contract of a conditional purchaser of a long-lived
commodity was looked upon with disfavor, principally
because it was not understood and because it required
a little care and work to handle it intelligently. Then
came the finance and discount companies because
they were actually needed. The bankers have them-
selves to thank for the appearance of these rivals,
some of whom they now wish to put out of business.
The legitimate discount companies will continue to
do business, for they have a rightful place in the busi-
ness of the country. The illegitimate ones, conducted
by men who must be descendants of the money
changers whom the Master kicked out of the Temple
and whose methods when not ignorant are those of
a low-grade pawnbroker, will be eliminated.
Piano Desirable Subjects.
Pianos will continue to be sold on instalments.
They should, be. They are long-lived—some think
too long-lived for the good of the industry. Person-
ally, I think a piano cannot be made foo good, but
when a fine piano does eventually lose its sweet voice
and it cannot be restored, it should be destroyed—put
out of its misery to relieve the misery of those who
must hear it.
The financing of any industry must take into con-
sideration the manner in which the average ultimate
consumer pays for the finished unit. The piano busi-
ness is inherently a time business and always will be.
(When I refer to a piano, I wish it understood that 1
include other more or less expensive musical instru-
ments.) It has always been amusing to me to see
certain prominent manufacturers earnestly advocate
the cash basis for the piano business, for both the
manufacturer and the dealer, and sell their own prod-
ucts on two or three years' time or even longer time.
I especially recall one distinguished manufacturer
who year after year made a specialty of this.
Opposing Interests.
As I have suggested, powerful interests are at work
on the problem of curtailing instalment selling. While
very little will or can be done by the enactment of
new laws or the repeal of old ones, nevertheless
these activities will be reflected in the legislative halls
of the country.
Individuals can do but little to promote the passage
of just and favorable laws or to prevent the adoption
of unfavorable ones. That is where state associa-
tions come in, for, so far as business is concerned, we
operate mainly under state laws.
OTTO SCHULZ RETURNS
FROM EUROPEAN TOUR
Head of M. Schulz Company, Chicago, Arrives
on Monday of This Week from Enjoy-
able Trip Abroad.
Otto Schulz, president of 'the M. Schulz Company,
711 Milwaukee avenue, Chicago, returned this week
from a tour of Europe. Mr. Schulz sailed from
Boulogne, France, on the S.S. Hambord, on June
4. and arrived in Chicago on June 13. While he en-
joyed himself during the time he spent abroad, he was
glad to be back in Chicago. He also expressed re-
gret that he was unable to attend the music trade in-
dustries convention in Chicago last week.
Mr. Schulz, accompanied by Mrs. Schulz, visited
the big cities of Germany, Austria, France and Italy,
where trade conditions and particularly those of 'the
piano trade were observed. He was in a cafe in
Paris when Col. Charles A. Lindbergh ended his
famous flight, and took part in the tremendous ova-
tion given the intrepid flyer.
HARRY C. SIPE, TRAVELER,
CELEBRATES JUBILEE YEAR
Friends of General Road Representative for Adam
Schaaf Extend Their Congratulations.
Harry T. Sipe, general
traveling
representative
for Adam Schaaf, Inc..
Chicago, was a guest at
the Stevens Hotel the en-
tire week of the conven-
tion and was naturally "in
and out with the trade"
every afternoon at least,
allowing for attendance
at the various sessions.
He was busy escorting
dealers to and from the
Adam Schaaf offices and
showrooms at 319-321
South Wabash avenue.
Mr. Sipe was assisted
during the week by I. P.
Nelson,
whose
home
town is Montpelier, Ind.,
ind who is an Adam
Schaaf traveler in the
western
and
central
HARRY C. SIPE
states.
The year 1927 is something of a jubilee year for
Mr. Sipe and he is celebrating, whenever the right
opportunity occurs, his twenty-first year with Adam
Schaaf. Back of his connection with Adam Schaaf
Mr. Sipe has had a long and enviable record of work
in the music trades and industries, having been in
the employ of the Western Cottage Organ Co., at
Ottawa, III.: Keller & Van Dyke, Scranton, Pa., and
Ludden & Bates, Savannah and Atlanta, Ga. Mr.
Sipe's entire business life has been spent in selling
R. B. OSLUND'S PLEASURE
RIDE TO CONVENTION
Found Roads Excellent on Trip Which Extended to
New York and Other Parts East.
One of the interesting callers at Presto-Times office
this week was R. B. Oslund, head of 'the Oslund
Piano House, Spokane, Wash., who was on his way
home in his new Willys-Knight sedan.
Mr. Oslund drove to the convention in Chicago in
"train time," and at the close of the meeting con-
tinued on to New York. Except for a short stretch
in Montana, he rode on hard roads all the way.
Mr. Oslund was eager to get home to help out in
an amazingly busy spell of business which began
June 1. He said they have been having satisfactory
piano sales since the opening of spring, but the stimu-
lation which hurries him home is something out of
the ordinarv in its extent.
FRED FIRESTONE IN CHICAGO.
Fred Firestone, formerly active in Chicago music
trade circles and who drifted to Florida to engage
BUYS HERRIN, ILL., STORE.
in real estate operations two or three years ago and
C. W. Fisher, of Herrin, 111., who for many years who came back to his old love, the music business,
has been the Jesse French & Sons piano dealer there, not long since, was in evidence during the conven-
has bought the L. L. Livedey Music Store in the tion. He has joined the forces of the great Platt
Unicn Block on South 14th Street, and will continue Music Co., Los Angeles, where he has plenty of
to operate it. He states that he will strive to give opportunity to "show his mettle." Mr. Firestone has
the best of service and maintain most liberal prices not a very good word for the Florida real estate
on Jesse French & Sons pianos and smaller musical business and much prefers the music business "as is"
today to Florida speculation in real estate.
instruments.
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