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Music Trade Review

Issue: 1918 Vol. 67 N. 1 - Page 9

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Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE
JULY 6, 1918
REVIEW
New War Tax Measure Still Shrouded in Uncertainty
Members of Musical Instrument Industry Watching Preparation of New Revenue
Bill Closely—George W. Pound and Marion Dorian Working for Trade's Interest
more specifically with the question of the
amount of tax upon musical instruments and
the form of the levy. I happen to know that
some of the members of the committee have
in the back of their heads some notion of in-
creasing the present tax upon player mechanism
and imposing direct taxes on other classes of
instruments and yet, instead of threshing out
this vital issue, Congressmen Hull and Green
led the discussion into a more or less academic
consideration of the relations of piano factories
to war industry and the broad consequences of
an impairment of industrial capacity in the coun-
try at large. Lamentably, no member of the
Ways and Means body saw fit to follow up Mr.
Pound's significant statement to the effect that
no nation in the world has yet gone so far as
to tax the straight piano, which has always been
held sacred as the vehicle of the poor man's
music. So long as no one in the committee
saw fit to open up this subject Mr. Pound could
not very well do so, especially as there was
really no evidence that the taxation of ordinary
grand and upright pianos was under considera-
tion, but it is realized that this proposition may
be sprung in executive session of the commit-
tee when no representative of the music in-
dustry is at hand to point out its injustice.
WASHINGTON, D. C, July 3.—Men of experience
in the music trades, such as members of the
legislative committee of the National Associa-
tion, who have been watching the trend of
events at Washington admit that one man's
guess may be as good as another's on the ques-
tion of what obligations, the new "war taxes"
will place on the musical industry. The Ways
and Means Committee of the House of Repre-
sentatives, with which rests the initiative, has
not yef set about framing the new Revenue bill
because the public hearings on the subject have
consumed so much more time than had been an-
ticipated to be necessary.
If any of the members of the committee have
been convinced by George W. Pound and other
witnesses that they should "stand pat" or even
remit a portion of the levies now imposed upon
the music trades they will not admit it. There
will be some correction of inequalities in the
existing tax law—the discrimination against
partnerships and in favor of corporations will,
for instance, be removed, and a certain allow-
ance in assets may be made for good-will, trade-
marks, etc., against which no investment entry
can now be made—but it is extremely doubtful
if there will be any relaxation of the taxes upon
the musical industry, and it is, to speak frankly,
more than possible that these taxes will be in-
creased, whether or not Congress accepts the
principle of a "consumption tax."
Will Distribute Burden as Widely as Possible
As an influential member of the Ways and
Means Committee explained the situation to the
writer, the committee, in giving a new twist to
taxation, has no desire to lay a burden so heavy
that ambition and enterprise in the musical in-
dustry will be chilled and production curtailed
to an extent where permanent injury would be
done to the industry. But on the other hand,
as he explained it, the committee faces a fact
and not a theory, namely, the Government's de-
mands for heavily increased revenue. As the
committeemen have heard representatives from
one industry after another predict dire conse-
quences of an increase in taxation they have
been at a loss which way to turn. As the only
solution that is possible, there seems to be grow-
ing in the committee, a sentiment that favors dis-
tributing the new tax burden just as widely as
possible, allowing exemption to no taxable in-
dustry no matter how strong its claims. A
manifestation of this spirit may be seen in the
strong inclination to impose in the new tax
schedule a levy of 2 cents per $100 on bank
checks, although when the first "war tax" legis-
lation was framed the bank check tax proposal
was rejected summarily.
Marion Dorian's Arguments
The idea of heavier taxes as applied to the
music industries reared its head more visibly
during the interrogation of Marion Dorian, of
the Columbia Gr,aphophone Co., who, unlike
MEETING OF MISSOURI MUSIC TEACHERS' ASSOCIATION
Gathering Held in St. Louis Last Week Discusses Moves for Nationalizing Music—To Foster Music
in the Home and Community Singing Movements—Headquarters at Kieselhorst Co. Store
ST. LOUIS, MO., July 2.—The Missouri Music
Teachers' Association met here last week and
discussed and approved a dozen moves to na-
tionalize music. It was the greatest "music in
the home" session this association ever has held
and gave the subject of music for the masses
considerable publicity in the local newspapers.
Among the ideas brought before the teachers
were the movement for a national musical con-
servatory, commissions for army bandmasters,
more recognition for the army singing masters
and the development of the community sing idea
throughout the country.
The idea was often expressed in the meeting
that the war had brought music closer to the
people than any other one factor. But it also
was brought out that there had been, previous
to the war, a general movement on the part of
musical societies to broaden their work. A
dozen years ago, said Mrs. William Dulaney, of
Sedalia, Mo., chairman of the music department
of the general Federation of Woman's Clubs,
choral societies were exceedingly exclusive and
Regarding Taxes on Musical Instruments
It is a matter of regret that the cross-ex-
amination of George W. Pound by members
of the Ways and Means Committee did not deal
AMERICAN PIANO SUPPLY COMPANY
FELTS
CLOTHS
PUNCHINGS
MUSIC WIRE
TUNING PINS
PLAYER PARTS
HINGES
CASTERS
HAMMERS
A Full Line of Materials for Pianos ant] Organs
MVken in need ox supplied
communicate w i t h us
110-112 BAST 13tk STREET
Mr. Pound, did not express a willingness for the
continuance of the present tax but argued for
remission of the present tax of 3 per cent, upon
gross sales. Members of the committee were
plainly skeptical that any tax that can be passed
on to the ultimate consumer will injure business,
and Congressman Garner declared that so far as
he knew no tax ever levied by the Government
has ever decreased the production of any article
outside of oleomargarine.
It was in the course of this same discussion
that Congressman Sterling made the significant
statement: "I feel we ought to put the highest
rate on musical instruments that we can, in or-
der to have the highest revenue from it." The
Columbia executive pointed out, what every
business man well appreciates, that there is a
limit, commercially, to the amount of tax that
can be passed on to consumers. Although Mr.
Dorian favors the removal of the 3 per cent
tax and the raising of revenue by taxes on ex-
cess profits, etc., he finally gave the opinion
that if the committee was bent on direct taxa-
tion to the limit, 5 per cent, would be the limit
that the talking machine industry could stand.
The committee has not accepted this 5 per cent,
calculation as infallible but in the deliberations
of the body, when it comes to actually framing
the new Revenue bill, this idea of a 5 per cent,
tax on gross sales or an equivalent" impost is
very likely to be tentatively adopted as a work-
ing basis, not only for the music industry, but
for other lines as well.
-
NEW YORK
sang for themselves alone. Now the choral so-
cieties are seeking to be leaders of the com-
munity sings. She also praised highly the folk
songs of Americans.
The teachers met in the Sheldon Memorial,
where they used the Mason & Hamlin pianos.
The downtown headquarters of the association
was at the Kieselhorst Piano Co., who sell the
Mason & Hamlin instruments. Signs on the
windows announced the headquarters distinc-
tion and invited the teachers to come in, which
a good many of them did.
A. F. Mengle, of the Mengle Music Co., a
West End store, was called to California, Mo.,
last week by the death of his mother.
J. B. Moran, manager of the Wurlitzer ware-
rooms, made a week-end trip to Cincinnati, the
home office.
M. I. Mayer, of the Smith-Reis sales force, is
roughing it on the Meramec River during his
vacation.
Charles Malcolm, of the Aeolian Hall staff,
joins the army on Tuesday of this week.
P. E. Conroy, O. A. Field and W. P. Chrisler
have been appointed a committee to raise funds
for the Music Industries Preservation Fund.
They report $1,005 in the city, which was as
much as they expected to get from the State.
W. A. Lippman, of the Field-Lippman Piano
Stores, attended t"he Rotary Club convention in
Kansas City last week as a delegate from the
local club. He stopped at Sedalia on his re-
turn to visit the Field-Lippman store there.
John Schlichter, wholesale traveler for the
Silverstone Music Co., was accepted as a soldier
at Camp Pike last week and Retail Sales Man-
ager Schlude was promoted to the traveling^job.
Mark Silverstone is going to San Fra'Vfyisco
to attend the Ad Club meetings an3 will re-
main on the West Coast for two months.
L. M. Oser has been conducting an exhibition
of York pianos at the Atherton Furniture Store,
Lewiston, Me., during the course of which he
sold a carload of York pianos.

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