Music Trade Review

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OCTOBER 12,
THE MUSIC TRADE REVIEW
1918
Government Officials Try to Prevent Profiteering
War Industries Board Giving Serious Attention to Questions of Fair Prices
ancTFair Profits—Local Music Dealers Believe Proposed Floor Tax Is L'njust
WASHINGTON, D. C, October 9.—Seldom a week
passes that national, officialdom does not inject
some new element into the conditions of war-
time merchandising. The most interesting and
most significant of the fresh factors that have
appeared this week has been supplied by the pro-
nouncement of Chairman Baruch, of the War
Industries Board, as to what constitutes fair
prices and fair profits for retailers. Time and
again, within the past few weeks, official Wash-
ington has declared that there is no intention
on the part of the Government to attempt to
dictate dealers' margins on the ordinary run of
articles of commerce. Chairman Baruch him-
self made such a denial in puncturing the rumor
that the War Industries Board intended to com-
pel the marking of every article offered for
sale with the wholesale price, or the so-called
"cost price," as well as the selling price.
Proper Wartime Profit for Retailers
Now, for all that these refutations still stand,
this big question of what is the proper profit for
retailers in wartime is being approached from
a somewhat different angle. The head of the
War Industries Board has made clear the posi-
tion of his body on this question in connection
with fixing of standardized prices for shoes.
Shoes, it may be added, rank as the first manu-
factured article to fall within range of the Gov-
ernment's price-fixing program.
Chairman
Baruch intimates that footgear is only one of a
long list of different classes of manufactured
articles upon which prices will ultimately be
"stabilized." That does not mean that price
control will ultimately extend to musical instru-
ments. Probably it will not, but, for all that,
music trade men are bound to sense a certain
application to themselves of the authoritative
Federal doctrine on retail prices and profits.
Civilians Entitled to Square Deal
Chairman Baruch takes the stand that it is
important for the morale of the American peo-
ple that the civilian population shall feel that
it has what he characterizes as "a square deal."
He does not accept unreservedly the explana-
tion of the business man that these are "ab-
normal" times. Rather does he contend that
because the times are abnormal it is up to sellers
of goods to do new and abnormal things in
order that distribution shall be equitable in all
senses of the word. Answering the specific
question of a group of department store man-
agers who were recently in Washington and
who inquired what constitutes "a fair price" he
admitted the difficulty of giving a hard and fast
definition, but explained that in his estimation a
fair price is one that represents roughly the
normal profit that would in normal times be
taken on the class of merchandise involved.
Curtailment in Catalogs Ordered
A development of the past week in behalf of
paper economy has direct significance for that
very large section of the music trade which
makes use of catalogs. This takes the form
of a decision by the Pulp and Paper Section of
the War Industries Board that the tonnage of
paper consumed in catalogs, supplements, flyers
and other forms of trade literature must be re-
duced by one-fifth. In deference to the cir-
cumstance that a number of the mail-order
houses have already commenced work upon, or
have purchased paper for, the catalogs to be is-
sued at the close of this year or the beginning
of next year it was agreed that for the last quar-
ter of 1918 and the first quarter of 1919 a cat-
alog curtailment of only 10 per cent, would be
exacted. After April 1, 1919, however, there
must be a cut of 20 per cent, in paper consump-
tion.
So far as the Government is concerned it is
immaterial whether a manufacturer of pianos,
talking machines, etc., saves his quota of paper
by cutting down the size of his catalog—say,
by printing fewer pages or using a page of
smaller dimensions—or whether he attains the
same end by restricting his editions, thereby
skimping his mailing list or putting out smaller
batches of the catalogs to his dealers for dis-
tribution. In no event, however, must there
be used in catalogs the very heavy coated paper
that has heretofore been used in some instances.
Furthermore, piano firms will not be permitted
henceforth to employ any coated paper heavier
than seventy-pound stock for the "inserts"
which they have been wont to furnish for em-
bodiment in the advertising sections of popular
magazines and trade journals.
Mail-Order Houses Protest Tax
Speaking of the mail-order houses it may be
mentioned that the large catalog houses and a
number of firms that do a mail-order business in
musical instruments and merchandise are pro-
testing vigorously to the U. S. Senate against a
provision in the War Revenue Act as passed
by the House of Representatives whereby a spe-
cial tax of 1 per cent, would have to be paid on
the aggregate of all mail-order sales over $100,-
000 per annum. The sellers by mail put forth
the plea that they are in reality retailers and
they object to the new tax unless it is made ap-
plicable also to retailers who make sales in
stores and warerooms instead of by mail.
Floor Tax Worries Washingtonians
An odd and contradictory picture is just now
presented in the local music trade at the na-
tional capital. Washington music merchants
were among the first in the country to discover
the menace of the insidious floor tax of 10 per
cent, on organs, pianos, talking machines, etc.,
stipulated in the new War Revenue bill as it
came from the House of Representatives, but
such are the necessities of the Washington mer-
chants that instead of being able to snuggle up
on stock until after the law is finally enacted,
for fear that this floor tax will stick, they have
no alternative but to hustle for additional stock
every minute. "The business is here if we
could only get the stock," the plaint of Manager
Van Wickle, of the Van Wickle Piano Co.,
voices the universal sentiment. A booming
"war headquarters," its population increased
more than 50 per cent, in a year, with plenty of
money to spend, and the keenest desire for mu-
sical relaxation and diversion, is clamoring for
instruments of every style and grade and for
rolls and records. No wonder Washington
merchants are visiting other cities in an effort
to corral any stock that can be found and are
shipping the goods by express in order to build
up a reserve stock in anticipation of unparalleled
demand at Christmas time. On one such quest
a Washington merchant was fortunate enough
to round up, along with his instrument pur-
chases, more than 3,000 Red Seal records.
J. 0 . ADAMS NOW SOLE OWNER
DALLAS TRADE BOOSTING LOAN
Purchases Interest of J. D. Martin in the Martin
& Adams Piano House, Wichita, Kan.
Local Association Urges Subscriptions in Large
Advertisement in Public Press
WICHITA, KAN., October 7.—J. O. Adams has
purchased from J. D. Martin the interest of the
latter in the music store of Martin & Adams in
this city. Mr. Martin is now in Colorado and
it is not known what he expects to do. Mr.
Adams expects to continue the business under
the old name.
The Martin & Adams Music Co., which has
been in business in Wichita several years, has
had a phenomenal growth. Each successive year
the business developed until last year the com-
pany took a long time lease on the six-story
Michigan Building at 206 East Douglas avenue,
where the store is now located. The entire six
floors of the building are used by the company,
which still continues to grow.
DALLAS, TEX., October 7.—The Dallas Music
Trades Association, of which J. C. Phelps is
president, is lending its support to the Fourth
Liberty Loan in a very practical manner. In
the Dallas News of Monday, September 30, a
half-page advertisement was inserted, signed by
sixteen members of the local Music Trades As-
sociation, calling upon the citizens to have their
subscriptions ready early in the campaign. The
work of taking the subscriptions started Mon-
day morning, and during the hours of 9 to 11
a. m., a host of canvassers covered the business
section of the city, securing subscriptions.
Many prominent members of the music trade in
this city were among the. solicitors, and latest
reports indicate that Dallas will oversubscribe
its quota by a very substantial amount.
The Field-Lippman piano stores also gave
NEW QUARTERS IN PORTLAND, ORE. publicity
to the Fourth Loan through the me-
dium
of
a
well-written advertisement, which not
PORTLAND, ORE., October 4.—The local branch
of the Bush & Lane Piano Co. is busy getting only boosted the loan, but also called attention
ready to move into commodious new quarters to the value of music in maintaining morale.
formerly occupied by Eilers Music Co. On the
10th of this month the present location will be
W. B. HARN A LIEUTENANT
abandoned and business will begin in the new
location. A removal sale has diminished the old Former Cable Company Man Volunteers With
the "Black Devils," and Is Proud of Them
stock of pianos and talking machines and hand-
some new instruments will be placed on sale in
The "Black Devils," as the 814th Infantry is
the new establishment. The phonograph de-
partment of the store, which has always done called, is happy in one of its lieutenants. W. B.
a fine business, is well supplied with Victrolas, Harn, formerly with the Cincinnati branch of
the Cable Company, says he knows it seems odd
Columbias and Sonoras.
that a Southerner should volunteer to serve with
A. C. Stadler, formerly connected with the negro troops, but he thinks that Southerners
Operators Piano Co. as advertising man, is now understand the colored soldiers and can handle
them better than a Northerner can.
at training in Camp Mills, L. I.
Back Up the Men Who Are Sacrificing Their All For All Of Us
BUY BONDS TO THE UTMOST
WINTER & CO.
22O Southern Boulevard, New York