Music Trade Review

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THE
7VTWSIC T R K D E
NEARLY A HALF MILLION
HUTCHINSON SWAPPED PIANOS
Added to the Knabe Business—$450,000 in First
Mortgage, Gold Five Per Cent. Bonds Pur-
chased by a Leading Banking House—A Good
Credit to the Enterprise—Magnificent Show-
ing in Assets—Expansion of Business Imper-
ative.
And Thereby Knocked Out a Rival Dealer Who
Thought He Had a Sure Thing—Had to Hand
Over the Cash.
While the business of the famous house of
Knabe has shown a steady development for
many years, yet within the past four years
it has gone ahead by leaps and bounds to
such an extent that this concern have so many
unfilled orders upon their books that a large
increase in the manufacturing capacity be-
comes imperative in order to take care of the
orders with reasonable promptitude.
This condition of affairs had to be success-
fully solved—either by holding their business
at a certain fixed output, or by introducing
fresh capital to enlarge the sphere of Knabs
operations.
Now, the Knabes, Ernest J. and William,
are progressive young men proud of the tra-
ditions of their house, and desirous of press-
ing on to still greater business conquests.
A stationary business does not meet with
their approval, therefore it was decided to
introduce new capital, which has been done
by a first mortgage, gold bond issue, of $450,-
000, bearing five per cent, interest.
A high compliment was paid to the finan-
cial standing of the house when one of the
largest and most successful banking houses
in Baltimore, Sperry, Jones & Co., purchased
the entire issue, and through them the bonds
are offered to outside purchasers.
In a prospectus, issued by the firm of
bankers, it is stated that the assets of the
company, as appraised by the Auditing Com-
pany of New York, are $1,303,026.40, ex-
clusive of good will, which is appraised at
the extremely modest figure of $325,000,
thus making the total value $1,628,026.40.
This move was made imperative by the
continuous increase in the Knabe business
which now, with $450,000 of additional cap-
ital, will be prepared to control a larger en-
terprise than ever before by a substantial
increase in their manufacturing facilities.
It certainly is a healthy sign when a busi-
ness can show such magnificent assets and
to have an entire issue of nearly a half mil-
lion in bonds immediately purchased.
The Knabe operations will not be cramped
by inadequate capital, but, on the contrary,
this famous old institution will be in a bet-
ter condition than ever to adequately meet
the wants of their clientage in all sections
of the country.
SECURE THE CHASE & BAKER.
O. K. Houck & Co, of St. Louis, Mo.,
have just secured the agency for the Chase
& Baker piano player. Their territory is an
extensive one and embraces within a hundred
miles of the city.
The Estey Organ Co.'s pipe organ de-
partment is having the hardest kind of work
to keep up with orders, and it is not im-
probable that additions will be made to the
factory in the near future.
Hays & Eberhardt, who have opened up
a piano store in Wichita, Kans., are hand-
ling the Chickering piano as their leader.
[Special to The Review.]
Philadelphia, Fa., April 8, 1903.
John Hutchinson, of New Bethlehem, Pa.,
one of the old-time Lester dealers, is a vet-
eran in the art of selling pianos, and Mr.
Hutchinson while in the Lester warerooms
related to me one of his early experiences:
"It was some years ago," he said, "when ter-
ritorial lines were not observed in the same
manner that they are to-day when I had a
particularly difficult opponent and one who
never stopped at anything to throw me down
on a sale. I was working a special party,
and had placed a F
piano in his home.
This instrument I had secured from the Wea-
ver Organ Co., of York, Pa., who were gen-
eral agents. My opponent learning that I
had installed a piano there, came down with
one of his own, placed it in the room, to-
gether with a new stool, but never uncov-
ered mine to note the name upon the fall
board. When I came around later to clinch
my bargain and saw my opponent's piano
I immediately concluded to have a little fun
with him, so I moved my piano across the
room in the position occupied by his, and
drew his stool by my instrument, and moved
his back where mine stood, covering his
piano with a rubber cover bearing my name.
I had scarcely completed this when in he
came with the flush of victory upon his face.
"He began to denounce my piano and his
rage became so great that he did not dis-
cover the change of instruments. The farmer,
however, had on hand a professor of music
who was to decide the question of musical
merit. Having tested both pianos the far-
mer asked him which was the better one.
1 knew that mine was in fine condition. He
pointed to my piano which was almost a
counterpart of the other, same wood and
style. A triumphant smile stole over the fea-
tures of my antagonist.
" 'Now, then, quality settled,' remarked
the farmer, 'let's fix the price. Each of you
fellows mark your price on a paper and pass
it to me.'
"I made my figures and my antagonist
made his.
"Mine was ten dollars higher.
"After looking over the prices, the fanner
turned around and said, T consider that it
is worth ten dollars more to get the best
piano and I will take this instrument,' point-
ing towards mine. He immediately reached
his hand in his inner pocket and drew forth
a huge roll of bills, remarking, 'I will pay
spot cash for the instrument.' He counted
out the money in bills of large denomination
and laid it on the table. My antagonist
quickly stepped up, seized the roll and thrust
it in his pocket. 'Here,' said I, 'give that to
me, that is my money.'
" 'Your money ? Well, I guess not.'
" 'And I guess yes, because it is my piano
that he has decided upon. Look at the num-
ber, and then I raised the top lid and dis-
closed the number and said, 'that is my piano,
what was your number?'
"He collapsed, turned all colors of the
rainbow, never said a word but went out
muttering something which did not sound
exactly like a Sunday-school lesson and never
from that date has he entered into a competi-
tive sale against me."
A VERY SATISFACTORY SHOWING.
According to Bradstreet's, March and the
first three months failure reports show that
commercial embarrassments are the small-
est reported in the first quarter for twenty
years, while liabilities—in other words, fail-
ure damage—was the smallest reported in
that period for sixteen years past.
There were only 2,640 failures reported
for the months of January, February and
March combined, a decrease of 12 per cent,
in number from last year and the year pre-
ceding, and of nearly 2 per cent, from the
hitherto low-record total of recent years,
that of 1900. Liabilities aggregated only
$28,016,996, a falling off of 18 per cent,
from last year and of 9 per cent, from the
low-record price of 1900. Failures, in fact,
were the fewest reported since 1882, and lia-
bilities the smallest since 1887.
Following will be found the failures by
months for the first quarter this year:
Ao.
Assets. Liabilities.
January
February
March
Totals
1,113 $4,572,140
781 4,200,997
746 4,588,570
$10,580,200
9,076,459
8,360,337
2,640 $13,361,707
$28,010,996
A steady decline in failures and liabilities
is here shown, the March totals being the
smallest reported this year.
New England and the Northwest showed
more failures occurring this year than last
in the first quarter, but the increase in New
England is only about 1 per cent., while the
increase in the Northwest is 20 per cent.
Against this is to be noted a falling off of
15 per cent, in the Middle States and of 14
per cent, in the Western States, while a
drop of 20 per cent, occurred in Southern
failures, and of 27 per cent, in the far West
and in the territories. As regards liabil-
ities a very slight increase is noted in the
Middle States, with an increase of 18 per
cent, in the Northwest and of 7 per cent,
in the far West. On the other hand, Western
States' liabilities are less than half those of
a year ago in the first three months, Southern
liabilities are 15 per cent, smaller, and New
England and the territories also show de-
creases in failure damage.
New York city failures, it might be noted,
were 22 per cent, fewer in number than in
the first quarter a year ago, while liabilities
were 27 per cent, smaller.
SAILED FOR EUROPE.
After many postponements, due to impor-
tant business matters requiring personal at-
tention, S. Willner, of the Willner-Wood
Co., New York, sailed for Europe on Thurs-
day. On his return it is expected an entirely
new and novel product in the wood line will
be placed before the trade.
As the result of some excellent Pianola
recitals at the warerooms of C. J. Heppe &
Sons, last week, they report a phenomenal
trade in these instruments. The present out-
put of Pianolas from the Heppe house has
exceeded all previous records.