Music Trade Review

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THE MUSIC TRADE REVIEW
Following War Revenue Legislation in Washington
UDGING from the developments in Washington it is now
clearly evident that the War Revenue Bill recently passed
by the House of Representatives is being subjected to a thor-
ough revision by the Senate Finance Committee, to the end that
a law more equitable to all the business interests of the country
shall be ultimately passed.
The Senate Committee is of the opinion that it would be
highly improper at this time to impose any heavier burdens upon
the industries of the United States than are absolutely necessary
Unless business is encouraged and extended as far as possible,
the privations which would result from the present war would
rest that much more heavily upon the country. It is believed
that any tax which increases the burden of business during the
war is ill conceived and opposed to the best interests of all con-
cerned.
Members of the music trade industry will note with interest
that the Senate Finance Committee has made a very thorough
revision of that section of the House bill, entitled VI, and in the
greater majority of instances the committee recommends the
elimination of taxation or the substitution of stamp taxes for
the manufacturers' gross sales plan of the House. The Commit-
tee has practically suggested that the tax upon pianos, organs and
other musical instruments, not operated mechanically, should be
struck out, but the Committee is further considering some form
of taxation upon mechanical musical instruments and talking
machine records. This may take the form of stamp taxes as
recommended in a number of other instances. The committee is
still seeking estimates from the Treasury Department on this
matter, but at this writing very satisfactory progress has been
made so far as the music trade industry is concerned.
Many of the items in this section are classed as luxuries,
when as a matter of fact they are prime necessities in the in-
dustrial life of the country. So far as the appellation of "luxu-
ries" to musical instruments is concerned, the error of this classi-
fication has been illuminatingly explained to those in charge of
the bill by the various officers of the local and national piano
associations. That music is an absolute necessity during war
times has been demonstrated not only in this country but in
Germany and England. In the latter country the initial tax on
musical instruments was removed because of the importance of
music in the life of the people—both civil and military.
J
An enormous revenue can be raised in this country without
double, confiscatory or punitive taxation, and had the Committee
of the House of Representatives having the War Revenue bill in
charge, taken into consideration the opinions of experienced
business men—many of them experts on taxation—a measure
could have been outlined that would be free from reckless the-
ories and would show a fair consideration for all interests. They
preferred, however, to frame their own bill, which is full of
crudities.
Nothing in the science of government calls for wider knowl-
edge than taxation, and it goes without saying that the American
people can and will pay thousands of millions of dollars taxation
cheerfully, but they believe that in taxation all should share alike,
and that no industry should be signaled out for oppression.
Of course an ideal taxation bill is difficult to attain, but in a
multitude of counsellers there is wisdom. A great many sugges-
tions on equitable taxation have been made by business men.
Among others we notice that the Victor Talking Machine Co.,
and Richard D. Wing, New York piano manufacturer, have made
suggestions that a tax of one per cent, on the value of all pro-
ducts manufactured in this country (outside of food stuffs),
would bring in a much larger amount of taxation than that fig-
ured out in the House bill. These views appear elsewhere in
this issue of The Review.
This, however, is only one of a number of suggestions, which
are naturally influencing the Senate to a proper conception of its
duties to the business interests of the Nation. In this War
Revenue taxation it is much safer to make haste slowly than
work an injustice to the business interests of the country, who
are most willing to stand their share, and more than their share,
provided a law is enacted that is fair to the country at large.
The piano men are not opposed to taxation, for it is a necessary
development of our war policy, but they are opposed to unfair,
discriminatory taxation.
It is gratifying that the National Piano Manufacturers' Asso-
ciation, at its convention in Chicago last week, appointed a per-
manent representative in the person of Chas. II. Parsons, who,
aided by other members of the industry, and by representatives
of the National Association of Piano Merchants, will see that
the claims of the music trade industry are properly presented and
looked after in Washington.
N an open letter to the trade the Steger & Sons Piano Mfg. Co.
of the most complete and interesting addresses ever
O NE delivered
I
make the pertinent suggestion that this is the proper time for
before an assembly of piano men was that of
the dealer to shorten terms on piano sales. In other words, the
Richard Lee of the Advertising Clubs of the World, delivered at
the Round Table Luncheon of the Merchants' Association. Mr.
Lee held an audience of over 150 for well over an hour with a
story of his fight against the International Automobile League
and other fraudulent advertisers in the automobile field—a story,
which, though based on fact, possessed the interest of clever
fiction.
The story was of particular interest in that at the close. Mr.
Lee stated that he had files full of proof against fake advertisers
in the piano field and planned to clean up this industry as his
next work.
After listening to what he had done to the automobile people,
it was not hard to realize that the piano man Mr. Lee really
goes after had better take to the woods and hide there. In other
words, when the Advertising Clubs of the World go after an
advertiser they are sure to get him from the start. Mr. Lee
asked for the support of the legitimate members of the trade
through the Vigilance Committee of the Merchants' Association
or as individuals in the cleaning up of certain localities, for their
own protection.
Mr. Lee made a very broad statement that misleading ad-
vertisers could not live were it not for the support of legitimate
members of the industry. He said the fraudulent advertiser as a
rule was well organized but that the legitimate members of the
trade would stand aside and watch their competitor carrying on
a losing fight without raising a hand to aid him. The legitimate
members of the piano trade might bear this fact in mind in the
advertising war that Mr. Lee has promised us.
dealer should so revise his selling terms as to obtain the largest
amount of cash possible out of each sale. The advice is good
because the tremendous resources of the country are not im-
paired. Prosperity is plainly evident, particularly in agricultural
sections. There is, moreover, in prospect the circulation of
enormous amounts of money that will go to purchase war sup-
plies of every sort.
Under such conditions the retail buyer should purchase
instruments on a proper basis. If one customer does not want
to pay there will be many others who will. Those who do not
meet their payments promptly after the instrument is in the
home should be made to observe the contract or the instruments
should be repossesseed.
This is no time for tying up capital in long time contracts.
It is the time for having capital at hand to make quicfc turn-
overs. Having capital tied up in instalment contracts, even at
six or eight per cent., is not good business when there are so
many opportunities for turning that capital over several times a
year and at a much higher rate of profit.
The piano merchant to-day should subordinate sales volume
to profit volume. In other words, he should figure his business
prosperity not according to the number of sales in his books but
according to the cash profit that he has made within a given
time. Cash in bank is a one hundred per cent, asset; piano in-
stalment paper, on the other hand, unfortunately, is not, and
that plain fact should be borne in mind by the piano merchant
who is building for the future.