Music Trade Review

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC TRADE
REVIEW
BALDWIN CO. TO INCREASE CAPITAL TO $2,800,000.
Directors to Take This Step at Meeting to Be Held in December—Propose Also to Pay Extra
Dividend Annually Out of Surplus Which Amounts to $1,812,539.75.
_•-.-•-;
(Special to The Review.j
Cincinnati, O., Nov. 26, 1912.
At a meeting of the board of directors of the
Baldwin Co., held last Thursday night, a plan
of distributing the surplus of the corporation, as
well as increasing the stock of the company from
$1,800,000 par value to $2,800,000 par value, the
new stock to be all common and-to be divided into
10,000 shares of a par value of $100, was an-
nounced. The move is subject to ratification by
the present stockholders, who will be asked to cast
their ballot on the subject at the next regular
meeting.
Concurrent with this announcement the stock-
holders were informed that on July 1, 1912, the
semi-annual report of the company showed an
accumulated earned surplus of $1,812,539.75, being
a total of more than the entire capital stock of the
company, both preferred and common.
Subject to ratification by the stockholders of
the proposed increase in the common stock the
directors expect to declare each year, commencing
in 1912, out of surplus, an extra dividend of 5
per cent, upon the common stock, payable in com-
mon stock in proportion of one share of new com-
mon stock for each 20 shares of common stock
outstanding at the time said extra dividend is pay-
able. It is announced, however, that the declara-
tion and payment of these extra dividends will
depend upon the action of the board of directors
in each specific instance. The stockholders will
vote upon the proposition on Monday, December
23,. at the office of the company.
tegrity and efficiency have always been won over
irrevocably to the service of the company by re-
ceiving an interest therein. Of the six original
partners, George Armstrong, Jr., now the president
of the company, is the sole survivor. Mr. Arm-
strong has been connected with the company for
39 years, having entered the employ of D. H.
Baldwin when a mere boy, having been also an
official of the company for practically the entire
period of his connection therewith.
Growth of the Industry.
The business was started in 1862, and for many
years was operated as D. H. Baldwin & Co., a
firm. Subsequently other manufacturing corpora-
tions were formed, the capital stock which was
taken and owned exclusively by members of the
firm of D. H. Baldwin & Co.
February, 1898, the Baldwin Co. was incorpor-
ated, taking over all of the manufacturing divi-
sions and selling departments.
CLOSING PROSPEROUS YEAR.
Ernest G. Clark, Vice-president Melville Clark
Piano Co., Chats of Great Progress Made—
Goggan Tells of Advancement in the South.
In addition to the magnificent plant on Gilbert
avenue, valued at about $600,000 for ground and
buildings alone, the Baldwin Co. owns also the
entire capital stock of the Baldwin Piano Co., the
Ellington Piano Co., the Hamilton Piano Co., of
Chicago Heights, 111., the Hamilton Organ Co., of
the same place, the Monarch Piano Co., of Chi-
cago, and the William H. Perry Lumber Co., Cin-
cinnati.
Dividends on the common stock started at 4 per
cent., were increased to 6 per cent, in 1907, and
to 8 per cent, in April, 1909. The company has no
bonds or mortgage indebtedness.
The Baldwin Co. enjoys the rare distinction of
being awarded the Grand Prix by the Paris Ex-
position. In fact, only two other Cincinnati manu-
facturing establishments have been accorded like
distinction, one being the Rookwood Pottery and
the other the Fay & Eagan Co.
The Baldwin securities are not listed on the
Stock Exchange and therefore there is no way
to figure upon the probable value of the common
stock under the proposed increase. It is believed
the stock would find a ready market at $450 per
share or more in the open market.
Star" State was more than satisfactory; for, ac-
cording to Mr. Goggan, the dealers are closing
more business than ever before and, what is of
more value, this business is of the substantial va-
riety that elevates and strengthens the trade.
ATTRACTIVE WINDOW DISPLAYS
The Melville Clark Piano Co.'s warerooms at
305 Fifth avenue, New York, were visited this
week by many well-known members of the trade. One of the Features at the Wm. Knabe & Co.
Warerooms—Strong Demand for Knabe Small
Among those who dropped in to shake hands with
Grands—Charles Keidel in New England.
Manager E. J. Delfraisse were Ernest G. Clark,
vice-president of the Melville Clark Piano Co. and
Distribution Is Cumulative.
R. K. Paynter, manager of the Wm. Knabe ware-
president of the Q. R. S. Co., manufacturers of
Assuming that the plan of the board of directors
rooms at 437 Fifth avenue, New York, is a firm
will be ratified 'by the vote of stockholders, the the Autograph roll; Melville A. Clark, manager of
believer in the drawing power of an attractive show
distribution will cover a period of a trifle over 14 the Clark Music Co., of Syracuse, N. Y., and in-
ventor of the Irish harp; and Thomas Goggan, of window, and the displays in the Knabe window
years. The annual distribution at the beginning
will amount to 500 shares of common stock of the Thomas Goggan & Bros., who control a chain of are models of refinement and present an attractive
stores in Texas, and who are progressive and ac- and artistic appearance. The window is an excep-
company, but the distribution being cumulative in
tionally large and deep one and affords an excellent
effect the stockholders will quickly acquire owner- tive Melville Clark representatives.
opportunity for the display of a grand piano. The
ship of the entire new issue.
In a chat with The Review, Ernest G. Clark
instrument shown this week is a handsome "Mig-
The annual dividend rate on the common stock
spoke most enthusiastically of conditions in the
nonette" grand which pleasures only 5 feet 2 inches
is 8 per cent, and on the preferred 6 per cent.
piano trade at the present time. "It has been a
in length, and is one of the leaders of the Knabe
The remarkable spectacle of a business with ac- phenomenal year," states Mr. Clark, "and this sat-
line. The case is of rich mahogany, and the beauty
cumulated surplus of more than its capital stock
isfactory condition of affairs is not confined to of the instrument has attracted the attention of
would seem to indicate a condition that naturally
any particular phase of the industry, but applies many passers-by on the avenue.
would warrant a more generous distribution, but
to every branch of the trade, wholesale and re-
"The past fortnight has witnessed a remarkable
the modesty of the plan and its conservatism are tail. I may say, without the slightest exaggera-
demand for small Knabe grands," states Mr. Payn-
in distinct accord with the history and traditions tion, that it has been the greatest year in our his-
ter, "and our wide assortment of cases and styles
of the Baldwin Co.
tory, and there is every indication of 1913 being
has enabled us to satisfy the demands of our most
equally
as
good,
if
not
better.
This
prosperous
There are less than 200 holders of common and
exacting patrons. The Knabe Angelus continues
state of affairs is probably due to the fact that
preferred stock, the division being 40 common and
to sell splendidly, and this season has been an ex-
the people are becoming better acquainted with
160 preferred stockholders, but some holders of
cellent one for all of our many styles."
common have preferred, and vice versa. The con- the merits of our products, and are beginning to
Among the many visitors this week to the ware-
cenris in effect a close corporation, in fact, almost appreciate the value of the music roll in the mu-
rooms were Samuel Furze, of the well-known house
a partnership, for all of the holders of stock are sical world.
of Samuel Furze & Co., Buenos Aires, Argentina,
individually interested in the conduct of the busi-
"Dealers in every section of the country are and Thos. Goggan, of Thos. Goggan & Bro., who
ness of the Baldwin Co.
writing to our factory for stock to fill the de- control a chain of stores in Texas. Mr. Furze
The institution, which is now a half century old, mands of their holiday trade; and, according to
spent considerable time in looking over the exten-
has always been conducted upon the plan of inter- all our agents, this year has been an excellent one
sive line of Knabe pianos displayed in the ware-
esting personally in the business those working for
from every standpoint. In traveling around the
rooms and was greatly impressed by them.
the Baldwin Co. Young men with aptitude, in- country I find a decided tendency toward the
•President Charles Keidel, of the Wm. Knabe Co.,
higher-priced and better class of goods, and the who recently returned from a two months' trip, is
fact that our immense factory at De Kalb is work-
at present away on a short journey through New
ing to full capacity bears substantial evidence of
England and Central New York.
the growth of the trade in first-quality products.
Our trade in grands is steadily increasing, and
VISITORS TO MASON & HAMLIN CO.
our many patrons are charmed with their splen-
did qualities." Mr. Clark plans to take a short
Among the many visitors this week to the Ma-
trip to New England, and expects to return to son & Hamlin warerooms at 313 Fifth avenue,
are conscientiously made, good
Chicago the early part of next week.
New York, were John G. Corley, president of the
Melville
A.
Clark,
who
is
a
nephew
of
Presi-
Corley Piano Co., Richmond, Va.; A. M. Wright,
instruments; in other words,
dent Clark, of the Melville Clark Piano Co., is vice-president and general manager of the Mason
the sweetest things out.
doing a splendid business in the up-State estab- & Hamim Co., Boston, Mass.; Frank D. Heffel-
lishment. The Clark Music Co. has one of the fir.ger, Minneapolis, Minn., and 11. H. Crowther,
finest stores in that section of the country, and the Eastern representative of the Cable Company.
business they are closing is a sure sign of the
Mr. Corley was here on a short business trip,
energetic work being carried on by the company and returned to Richmond on Wednesday. He
toward developing a high-class clientele in Syra-
stated that the piano trade in the South was in
cuse and the adjoining territory.
as excellent shape and that the dealers were all
RUDOLF PIANO CO.
looking forward to a banner holiday trade. Mr.
Thomas Goggan, whose firm is one of the best
Wright came to New York on one of his flying
known in Texas, arrived in New York for a short
721 East 137th St.
NEW YORK
visits, remaining but a few days.
visit. He stated that the piano trade in the "Lone
RUDOLF
PIANOS