Music Trade Review
Issue: 1896 Vol. 23 N. 17 - Page 11
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
The fianufacturer and the Dealer.
A MORAL FROM DERRICK'S CONVICTION THE QUESTION OF CREDIT AN ALL-IMPORTANT ONE
PROPER EXTENSION HELPS THE HONORABLE DEALER WHAT OF THE FUTURE ?
CHANCE FOR MANUFACTURERS TO TAKE CONCERTED ACTION.
T
V ;
HE sentence of five years and eight
months imprisonment visited last
week on Frank M. Derrick, the ex-piano
dealer of Rochester, N. Y., should prove a
lesson to a certain class of men' who have
heretofore been playing a dangerous game
with apparent success.
During the past couple of years we have
had a number of illustrations in the trade
which demonstrate unfortunately that a
degree of latitude is afforded a certain
class of trade pirates which is to be de-
plored.
There has been too much temporizing
with dishonesty and with trickery. It has
worked an injury not only to the manufac-
turer who has been foolish enough to ex-
tend support and credit, but to the honor-
able dealer who endeavors to meet his obli-
gations honestly and who is worthy the
confidence reposed in him.
As the old saying has it, "murder will
out." The end is bound to come in due
time, and, mark you, it is not always a
pleasant one.
The success of such a scoundrel as Der-
rick in being able to fool the manufacturers
and the public is, we are pleased to say,
not too common in our industry, but if
proper steps were taken, it could not at all
be possible.
Back of this matter of Derrick and others
there lays the important question of credit,
without which the unscrupulous dealer
could not be enabled to successfully com-
pete with his honorable rival, cheat the
manufacturer, fool the public and—some-
times end his days in prison. There have
been several instances recently of small
concerns, and in fact large ones, failing
with liabilities out of all proportion to
their assets. In one or two cases the
liabilities have been three times larger than
the assets. In fact, in the majority of
smaller failtires the assets have, in all
cases, been far below the liabilities. Mind
now, we are speaking solely of dealers.
This is a matter for serious considera-
tion, and the question comes at once to the
minds of thinking persons, how does it
happen that these people, can get so far in .
to debt with so little capital to guarantee
its payment? Plenty would answer, credits
are extended too readily in the piano
trade—credit is too cheap. While we are
hardly inclined to coincide with this view,
yet there is an element of truth in the
answer.
During the past few years, owing to the
peculiar conditions existing in the commer-
cial world, business men have run extraor-
dinary risks to sell goods. Discounts have
been enlarged, time of dating extended,
and many abuses have crept into business
through the mighty struggle for trade.
As a consequence, it has become possible
for a man with but little capital, but with
a great deal of effrontery, to gain for him-
self a credit far beyond his deserts. By
clever management some men who do this
succeed in building up large establish-
ments, and carry prodigious trades. There
are instances well known in the trade of
people who have started in this manner,
who have at last reached a point where
they are entirely good for all the credit
they desire, yes, who have grown wealthy
through this means. But where one such
case can be quoted, there are a hundred
where the debtors have ended their career
by a failure quite disproportionate in mag-
nitude to the capital actually invested.
The quesiton is, where will it end?
Commenting on a somewhat similar con-
dition in another industry, a writer aptly
answers: It is hard to tell, for notwith-
standing the signs by the way and the
wrecks by the roadside, enterprising (?)
men will drive straight over the same road,
using their utmost endeavors to do a big
business, taking risks and giving credits
at which their predecessors of ten or twenty
years ago would stand aghast.
There is a commendable ambition on the
part of the business man to-day to do a big
business. In fact, things have come to so
fine a point that unless a big business is
done, very little or no profit can result.
But is it commendable to push business to
such an extent that you will give unlimited
credit where your competitor has denied it?
Is it good business policy to force goods
upon your debtor, for the sake of showing
larger sales at the end of a year? In the
olden times, the buyer came to market. He
asked for the goods. Possibly he asked for
credit. To-day the man with five thousand
dollars cash doesn't have to ask for goods;
he has to refuse as much as he accepts.
The traveling salesmen go to him—visit
him at his own store. He has credit forced
upon him, and if he be dishonest—if he be
even heedless, he is likely to find twice as
many goods in his store as his capital will
warrant him in buying.
Trade has been curtailed greatly within
the last few months. There has been a
wave of conservatism sweeping over the
country. Buyers have hesitated before buy-
ing, sellers have thought twice before giv-
ing credit. Is not now the time for all
branches of the trade to consider this ques-
tion of credit? Is not now the time for
debtors to hold themselves well within the
bounds of solvency? Is not now the time
for manufacturers and jobbers to form some
plan, take some concerted action to acquaint
themselves with the solvency of every man
to whom they give credit?
We are in the midst of a revival of busi-
ness. That is what most sagacious men
are saying, and we believe them. The late
fall will show a business activity far ahead
of the present condition. Will this very
state of affairs lead to the abuses of credit
which have wrecked many houses in the
past? We hope not. The intelligent
members of the industry can be relied up-
on to handle this matter with discretion
and ability.
Recent Legal Decisions.
(PREPARED FOR THE MUSIC TRADE REVIEW.)
FRAUDULENT SALES—Evidence concern-
ing conspiracy and fraudulent sale; best
evidence; inconsistent position on appeal.
(Appellate Division Rulings, N. Y.)—In
an action involving the issue whether a sale
of goods by a debtor to the plaintiff was
void, because made with the intent to de-
fraud creditors, an objection that certain
transactions of the debtor with others than
the plaintiff were immaterial because not
"connected" with the plaintiff is ineffec-
tual, as the debtor's intent is an element of
the fraud. When a conspiracy is charged,
the acts of the various persons accused re-
lating to the matters involved are admis-
sible unless they are apparently irrelevant
and immaterial, and if they are subsequent-
ly shown to have no connection with one of
the parties accused, his remedy is to have
such testimony stricken out.
Mere suspicion of purchaser that seller
intends to defraud creditors is not enough
to void the sale unless the seller, upon
making reasonable inquiry, would have
been able to ascertain facts confirming his
suspicion. Opinion by Bischoff, J.
The fact that a witness has been acquitted
of a criminal charge is provable by the
record only.
Rule that position on appeal must be
consistent with position at trial applies in
action against sheriff's indemnitors where
at trial plaintiff asked for verdict on
ground that justification was not proved,
and on appeal supported request on the
ground that the attachment proceedings
and indemnity bond had not been given in
evidence. (Poholski v. Ertheiler.)
INSTALLMENT SALES.—A promise to ex-
tend the time for payment of an installment
due on a conditional sale or lease of goods
is held, in Cole v. Hines (Md.) 32 L. R.
A. 455, to be a waiver of forfeiture for de-
fault which will prevent asserting it before
the expiration of the extended time. The
retaking of possession of a chattel by recis-
sion of a conditional sale is held, in
Seanor v. McLaughlin (Pa.) T> 2 L. R. 467,
to preclude a subsequent enforcement of a
judgment bend given as collateral security
for the price.
The Trade Directory, which is a feature
of The Reviezv each month, is complete. In
it appears the names and addresses of all
firms engaged in the manufacture of musical
instruments and the allied trades. The Re-
view is sent to the United States Con-
sulates throughout the zvorld, and is on file
in the reading rooms of the principal hotels
in America.
THE MUSIC TRADE REVIEW
The fianufacturer and the Dealer.
A MORAL FROM DERRICK'S CONVICTION THE QUESTION OF CREDIT AN ALL-IMPORTANT ONE
PROPER EXTENSION HELPS THE HONORABLE DEALER WHAT OF THE FUTURE ?
CHANCE FOR MANUFACTURERS TO TAKE CONCERTED ACTION.
T
V ;
HE sentence of five years and eight
months imprisonment visited last
week on Frank M. Derrick, the ex-piano
dealer of Rochester, N. Y., should prove a
lesson to a certain class of men' who have
heretofore been playing a dangerous game
with apparent success.
During the past couple of years we have
had a number of illustrations in the trade
which demonstrate unfortunately that a
degree of latitude is afforded a certain
class of trade pirates which is to be de-
plored.
There has been too much temporizing
with dishonesty and with trickery. It has
worked an injury not only to the manufac-
turer who has been foolish enough to ex-
tend support and credit, but to the honor-
able dealer who endeavors to meet his obli-
gations honestly and who is worthy the
confidence reposed in him.
As the old saying has it, "murder will
out." The end is bound to come in due
time, and, mark you, it is not always a
pleasant one.
The success of such a scoundrel as Der-
rick in being able to fool the manufacturers
and the public is, we are pleased to say,
not too common in our industry, but if
proper steps were taken, it could not at all
be possible.
Back of this matter of Derrick and others
there lays the important question of credit,
without which the unscrupulous dealer
could not be enabled to successfully com-
pete with his honorable rival, cheat the
manufacturer, fool the public and—some-
times end his days in prison. There have
been several instances recently of small
concerns, and in fact large ones, failing
with liabilities out of all proportion to
their assets. In one or two cases the
liabilities have been three times larger than
the assets. In fact, in the majority of
smaller failtires the assets have, in all
cases, been far below the liabilities. Mind
now, we are speaking solely of dealers.
This is a matter for serious considera-
tion, and the question comes at once to the
minds of thinking persons, how does it
happen that these people, can get so far in .
to debt with so little capital to guarantee
its payment? Plenty would answer, credits
are extended too readily in the piano
trade—credit is too cheap. While we are
hardly inclined to coincide with this view,
yet there is an element of truth in the
answer.
During the past few years, owing to the
peculiar conditions existing in the commer-
cial world, business men have run extraor-
dinary risks to sell goods. Discounts have
been enlarged, time of dating extended,
and many abuses have crept into business
through the mighty struggle for trade.
As a consequence, it has become possible
for a man with but little capital, but with
a great deal of effrontery, to gain for him-
self a credit far beyond his deserts. By
clever management some men who do this
succeed in building up large establish-
ments, and carry prodigious trades. There
are instances well known in the trade of
people who have started in this manner,
who have at last reached a point where
they are entirely good for all the credit
they desire, yes, who have grown wealthy
through this means. But where one such
case can be quoted, there are a hundred
where the debtors have ended their career
by a failure quite disproportionate in mag-
nitude to the capital actually invested.
The quesiton is, where will it end?
Commenting on a somewhat similar con-
dition in another industry, a writer aptly
answers: It is hard to tell, for notwith-
standing the signs by the way and the
wrecks by the roadside, enterprising (?)
men will drive straight over the same road,
using their utmost endeavors to do a big
business, taking risks and giving credits
at which their predecessors of ten or twenty
years ago would stand aghast.
There is a commendable ambition on the
part of the business man to-day to do a big
business. In fact, things have come to so
fine a point that unless a big business is
done, very little or no profit can result.
But is it commendable to push business to
such an extent that you will give unlimited
credit where your competitor has denied it?
Is it good business policy to force goods
upon your debtor, for the sake of showing
larger sales at the end of a year? In the
olden times, the buyer came to market. He
asked for the goods. Possibly he asked for
credit. To-day the man with five thousand
dollars cash doesn't have to ask for goods;
he has to refuse as much as he accepts.
The traveling salesmen go to him—visit
him at his own store. He has credit forced
upon him, and if he be dishonest—if he be
even heedless, he is likely to find twice as
many goods in his store as his capital will
warrant him in buying.
Trade has been curtailed greatly within
the last few months. There has been a
wave of conservatism sweeping over the
country. Buyers have hesitated before buy-
ing, sellers have thought twice before giv-
ing credit. Is not now the time for all
branches of the trade to consider this ques-
tion of credit? Is not now the time for
debtors to hold themselves well within the
bounds of solvency? Is not now the time
for manufacturers and jobbers to form some
plan, take some concerted action to acquaint
themselves with the solvency of every man
to whom they give credit?
We are in the midst of a revival of busi-
ness. That is what most sagacious men
are saying, and we believe them. The late
fall will show a business activity far ahead
of the present condition. Will this very
state of affairs lead to the abuses of credit
which have wrecked many houses in the
past? We hope not. The intelligent
members of the industry can be relied up-
on to handle this matter with discretion
and ability.
Recent Legal Decisions.
(PREPARED FOR THE MUSIC TRADE REVIEW.)
FRAUDULENT SALES—Evidence concern-
ing conspiracy and fraudulent sale; best
evidence; inconsistent position on appeal.
(Appellate Division Rulings, N. Y.)—In
an action involving the issue whether a sale
of goods by a debtor to the plaintiff was
void, because made with the intent to de-
fraud creditors, an objection that certain
transactions of the debtor with others than
the plaintiff were immaterial because not
"connected" with the plaintiff is ineffec-
tual, as the debtor's intent is an element of
the fraud. When a conspiracy is charged,
the acts of the various persons accused re-
lating to the matters involved are admis-
sible unless they are apparently irrelevant
and immaterial, and if they are subsequent-
ly shown to have no connection with one of
the parties accused, his remedy is to have
such testimony stricken out.
Mere suspicion of purchaser that seller
intends to defraud creditors is not enough
to void the sale unless the seller, upon
making reasonable inquiry, would have
been able to ascertain facts confirming his
suspicion. Opinion by Bischoff, J.
The fact that a witness has been acquitted
of a criminal charge is provable by the
record only.
Rule that position on appeal must be
consistent with position at trial applies in
action against sheriff's indemnitors where
at trial plaintiff asked for verdict on
ground that justification was not proved,
and on appeal supported request on the
ground that the attachment proceedings
and indemnity bond had not been given in
evidence. (Poholski v. Ertheiler.)
INSTALLMENT SALES.—A promise to ex-
tend the time for payment of an installment
due on a conditional sale or lease of goods
is held, in Cole v. Hines (Md.) 32 L. R.
A. 455, to be a waiver of forfeiture for de-
fault which will prevent asserting it before
the expiration of the extended time. The
retaking of possession of a chattel by recis-
sion of a conditional sale is held, in
Seanor v. McLaughlin (Pa.) T> 2 L. R. 467,
to preclude a subsequent enforcement of a
judgment bend given as collateral security
for the price.
The Trade Directory, which is a feature
of The Reviezv each month, is complete. In
it appears the names and addresses of all
firms engaged in the manufacture of musical
instruments and the allied trades. The Re-
view is sent to the United States Con-
sulates throughout the zvorld, and is on file
in the reading rooms of the principal hotels
in America.
Future scanning projects are planned by the International Arcade Museum Library (IAML).