Music Trade Review
Issue: 1915 Vol. 61 N. 25 - Page 5
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
WHERE THE GETTING IS GOOD.
(Continued from page 3.)
It is surprising how the ever-increasing tide of cost has reached all industries. For some of our
colored paper stock we are paying an advance of two and one-half cents a pound over former con-
tracts; the greatest single advance that I have ever known. Of course a good many are utilizing the
war as a convenient peg on which to hang their arguments for advancing prices, and unquestion-
ably a good many houses in varied lines have marked up prices recently without justification.
Still granting reasonable allowances in individual cases, the fact stares every producing house in
the face that the material markets of the world at the present time are still in a precarious state,
and it is difficult to base with any kind of accuracy just what future costs will be.
In my opinion the piano merchants of the country as a whole must expect to pay more for
pianos during the New Year than they have in the past.
The margin of manufacturing profits has not been large during past years. It has been steadily
reduced by reason of the friction of competition, some of which has not been fair—that is, compe-
tition which does not meet its obligations, and as a result many well-intentioned manufacturers
have gradually been forced down in their wholesale prices by this form of irritating competition.
It is to be hoped that during the New Year we shall see less of this practice, because no man in
any line of business who pays his bills can win against the man who does not, for soon his re-
sources will be exhausted precisely as the man who started in with the deliberate intention to abuse
his credit—only on one hand the man who has something to lose is differently placed than the man
who is making a bluff and has nothing.
Credits certainly should be scanned with exceeding care, for products are going to cost more to
create, and a good stiff* credit backbone to the industry will be the staunchest kind of support
which can be rendered. Better less business and a safer business.
While general conditions point to an increased demand for products
in all lines, there should be a reasonable safeguard adopted by business
men, so that they can make the most of conditions while the getting is
good.
Higher Industrial Efficiency the Chief Aim.
H
I G H E R industrial efficiency is the aim of the Federal State
Commission.
Edward N. Hurley, who is vice-president of the Commission,
delivered an address along these lines at the annual meeting of the
Association of National Advertisers' in this city. In the course of
his remarks, Mr. Hurley said that Government and business should
be mutually helpful. Referring to manufacturing costs, he said :
KI: "Speaking generally, the real constructive help must come from
within. We need to study standard systems of bookkeeping and
cost-accounting. In order to put a selling price on a product a
manufacturer must first know exactly what it costs to manufacture
and sell it.
"A manufacturer who does not know with a close degree of
accuracy what it costs him to produce the different articles he manu-
factures and what it costs him to sell them, is not in a position in-
telligently to meet competition, and invites business disaster.
''Many of the larger manufacturers have thorough cost ac-
counting systems, which they recognize as necessary in order to
give them the information essential to successful management. On
the other hand, the number of smaller manufacturers who have no
adequate cost accounting system and who price their goods arbi-
trarily is amazing. Proper accounting for the smaller manufac-
turer is most essential. Whole industries, in many instances, are
suffering from a general lack of intelligent knowledge of cost.
"How can the Federal Trade Commission help to cure those
conditions?
"The Commission has no power and no desire to use compul-
sory methods. But it does hope to reach the desired end by in-
dorsing standard systems of bookkeeping and cost accounting, and
to assist in devising standard systems. The Commission expects
to have for this work an adequate force of experienced accountants
and cost experts, and the service, in an advisory capacity, of public
accountants of national reputation.
"What may be expected from such activities of the Federal
Trade Commission?
"First, the individual enterprise will be helped. Their prices
will be made on a solid basis of fact.
"Second, the employes of these firms will be benefited. They
will be trained to more thorough and more accurate methods of
work. This improved knowledge will increase their effectiveness,
and their individual value to their employers.
, • ... 7
"Third, the investor will be benefited. He will be able to in-
vest his money with the greater assurance that it will be used in the
most advantageous manner.
"Fourth, the public will benefit: it will not have to pay for in-
efficient methods.
"An up-to-date system of accounting will enable the banker to
extend to the smaller manufacturer the credit to which he is en-
titled, and which he needs in order to expand his business. The
small manufacturer may have just as much brains, ability, knowl-
edge of his wares and of his customers as the large operator; he
may even put out a superior product. But he cannot show the
banker a balance sheet based on proper accounting methods, and
the banker does not feel ready to extend credit without the knowl-
edge that such a balance sheet would supply.
"There should be a greater degree of organization and of
mutual helpfulness in all lines of trade and industry, so that Ameri-
can business may be welded into a commercial and industrial whole;
the part of the Government being to co-operate with business men,
on request, to bring about the results that will benefit business, and
hence promote our national welfare.
"One of the most effective forms of organization is the trade
association. The association has a wide field of useful and proper
activities. Concerns in the same industry may take common action
looking toward improving their processes of manufacture, standard-
izing their product, improving their system of ascertaining costs,
obtaining credit information and encouraging the development of
trade journals. The welfare of employes is one of the important
matters which can be best developed by co-operating in associa-
tions/'
THE MUSIC TRADE REVIEW
WHERE THE GETTING IS GOOD.
(Continued from page 3.)
It is surprising how the ever-increasing tide of cost has reached all industries. For some of our
colored paper stock we are paying an advance of two and one-half cents a pound over former con-
tracts; the greatest single advance that I have ever known. Of course a good many are utilizing the
war as a convenient peg on which to hang their arguments for advancing prices, and unquestion-
ably a good many houses in varied lines have marked up prices recently without justification.
Still granting reasonable allowances in individual cases, the fact stares every producing house in
the face that the material markets of the world at the present time are still in a precarious state,
and it is difficult to base with any kind of accuracy just what future costs will be.
In my opinion the piano merchants of the country as a whole must expect to pay more for
pianos during the New Year than they have in the past.
The margin of manufacturing profits has not been large during past years. It has been steadily
reduced by reason of the friction of competition, some of which has not been fair—that is, compe-
tition which does not meet its obligations, and as a result many well-intentioned manufacturers
have gradually been forced down in their wholesale prices by this form of irritating competition.
It is to be hoped that during the New Year we shall see less of this practice, because no man in
any line of business who pays his bills can win against the man who does not, for soon his re-
sources will be exhausted precisely as the man who started in with the deliberate intention to abuse
his credit—only on one hand the man who has something to lose is differently placed than the man
who is making a bluff and has nothing.
Credits certainly should be scanned with exceeding care, for products are going to cost more to
create, and a good stiff* credit backbone to the industry will be the staunchest kind of support
which can be rendered. Better less business and a safer business.
While general conditions point to an increased demand for products
in all lines, there should be a reasonable safeguard adopted by business
men, so that they can make the most of conditions while the getting is
good.
Higher Industrial Efficiency the Chief Aim.
H
I G H E R industrial efficiency is the aim of the Federal State
Commission.
Edward N. Hurley, who is vice-president of the Commission,
delivered an address along these lines at the annual meeting of the
Association of National Advertisers' in this city. In the course of
his remarks, Mr. Hurley said that Government and business should
be mutually helpful. Referring to manufacturing costs, he said :
KI: "Speaking generally, the real constructive help must come from
within. We need to study standard systems of bookkeeping and
cost-accounting. In order to put a selling price on a product a
manufacturer must first know exactly what it costs to manufacture
and sell it.
"A manufacturer who does not know with a close degree of
accuracy what it costs him to produce the different articles he manu-
factures and what it costs him to sell them, is not in a position in-
telligently to meet competition, and invites business disaster.
''Many of the larger manufacturers have thorough cost ac-
counting systems, which they recognize as necessary in order to
give them the information essential to successful management. On
the other hand, the number of smaller manufacturers who have no
adequate cost accounting system and who price their goods arbi-
trarily is amazing. Proper accounting for the smaller manufac-
turer is most essential. Whole industries, in many instances, are
suffering from a general lack of intelligent knowledge of cost.
"How can the Federal Trade Commission help to cure those
conditions?
"The Commission has no power and no desire to use compul-
sory methods. But it does hope to reach the desired end by in-
dorsing standard systems of bookkeeping and cost accounting, and
to assist in devising standard systems. The Commission expects
to have for this work an adequate force of experienced accountants
and cost experts, and the service, in an advisory capacity, of public
accountants of national reputation.
"What may be expected from such activities of the Federal
Trade Commission?
"First, the individual enterprise will be helped. Their prices
will be made on a solid basis of fact.
"Second, the employes of these firms will be benefited. They
will be trained to more thorough and more accurate methods of
work. This improved knowledge will increase their effectiveness,
and their individual value to their employers.
, • ... 7
"Third, the investor will be benefited. He will be able to in-
vest his money with the greater assurance that it will be used in the
most advantageous manner.
"Fourth, the public will benefit: it will not have to pay for in-
efficient methods.
"An up-to-date system of accounting will enable the banker to
extend to the smaller manufacturer the credit to which he is en-
titled, and which he needs in order to expand his business. The
small manufacturer may have just as much brains, ability, knowl-
edge of his wares and of his customers as the large operator; he
may even put out a superior product. But he cannot show the
banker a balance sheet based on proper accounting methods, and
the banker does not feel ready to extend credit without the knowl-
edge that such a balance sheet would supply.
"There should be a greater degree of organization and of
mutual helpfulness in all lines of trade and industry, so that Ameri-
can business may be welded into a commercial and industrial whole;
the part of the Government being to co-operate with business men,
on request, to bring about the results that will benefit business, and
hence promote our national welfare.
"One of the most effective forms of organization is the trade
association. The association has a wide field of useful and proper
activities. Concerns in the same industry may take common action
looking toward improving their processes of manufacture, standard-
izing their product, improving their system of ascertaining costs,
obtaining credit information and encouraging the development of
trade journals. The welfare of employes is one of the important
matters which can be best developed by co-operating in associa-
tions/'
Future scanning projects are planned by the International Arcade Museum Library (IAML).