Music Trade Review
Issue: 1918 Vol. 67 N. 20 - Page 5
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
NOVEMBER 16, 1918
5
THE WAR IS OVER—NOW FOR BUSINESS
(Continued front page 3)
as it is to-day. It means that both divisions of the trade must be able to finance themselves to a great degree,
and to finance themselves means to get cash, or what approximates cash, for the goods they sell.
The trade has had its baptism of fire and the lesson should not go unheeded. The public has been edu-
cated up to substantial prices and cash or short-term buying. It took a war to bring about a selling system
that has been advocated for decades. Let this most desirable selling system, adopted through sheer-necessity,
be maintained from choice.
Without doubt the loosening up of the material market will bring with it a reduction in manufacturing
costs and a subsequent reduction in the price of manufactured products. So much the better from the selling
viewpoint, for more reasonable prices will mean a broader field of distribution.
,
There will be many material benefits to business as a result of the end of the war, aside from the victory
which we have achieved. Let the music trade hold on to the sound credit system as representing one !of
these lasting benefits.
'
FLOOR TAX CLAUSE IS KILLED
Sections 909 and 910 of War Revenue Bill Pro-
viding for Floor Taxes on Manufacturers',
Wholesalers' and Retailers' Stocks Removed
George W. Pound, general counsel of the
Music Industries Chamber of Commerce, an-
nounced this week that as a result of strong ar-
guments made by himself and representatives of
other industries against the inclusion of the
provisions for a floor tax on musical instru-
ments in the new War Revenue bill, the Senate
Finance Committee had removed from the bill
Sections 909 and 910 providing for such a tax.
The seriousness of the floor tax and the dan-
ger it presented to the industry, particularly re-
tailers, was early recognized and strong efforts
immediately put forth to have it removed. As
it stood in the original draft of the bill, a floor
tax of 10 per cent, was levied on all musical in-
struments in the hands of manufacturers, whole-
salers and retailers at the time the bill became
a law, and a payment of this tax would have
proven a heavy burden on piano men generally,
and, in fact, would have threatened bankruptcy
to some of them.
The floor tax iii the present War Revenue bill
applies only to wholesalers, but the proposed
clause in the new measure would have affected
retailers also. The successful fight resulting in
the removal of the objectionable clause from the
bill is looked upon as a decided victory for the
industrial organization, and it is believed that
no attempt will be made to reinsert the same or
similar clauses before the bill becomes a law.
WAR INDUSTRIES SOON TO
BE BACK ON PEACE BASIS
Raw Materials Now Needed for U. S. Contracts
Will Be Released, Announces Chairman Ba-
ruch—Committee to Make Adjustment
WASHINGTON, D. C, November 11.—Now that
we are on the last lap toward a permanent peace
following the signing of the armistice terms with
Germany on Monday morning, it is interesting
to note the attitude of the War Industries
Board toward the resumption of general in-
dustry and the supplying of needed raw mate-
rials to meet the demands of our manufacturers.
In-this connection Bernard N. Baruch, chairman
of the War Industries Board, we understand,
has adopted a policy.for the period between the
signing of an armistice and the agreement on
peace terms.' He has just announced that busi-
ness is to be let back into peace channels
gradually to prevent any disorder or unfair ad-
vantages.
The man who has been manufacturing war
supplies will be relieved of his contracts bit by
bit, so as to prevent confusion or loss. At the
same time the man who has not been engaged
on Government work will be held in check to
keep him from getting ahead of his old peace-
time competitor.
PRIORITIES COMMISSIONER GRANTS PERMISSION
TO PIANO INDUSTRY TO DOUBLE OUTPUT
In Telegraphic Order Issued on Monday He Permits of Production Not Exceeding Two-Thirds of
That of 1917—Order Accepted as Good Omen by Piano Men
'
The signing of the armistice with Germany, announced on Monday of this.week,
brought joy to the piano manufacturing industry in more ways than one, for Ion the
same day there came from Edwin B. Parker, Priorities Commissioner in Washington,
a telegraphic order permitting the piano manufacturers to increase their outpiit from
one-third to two-thirds of their 1917 output, as computed under existing curtailment
orders.
On Monday, George W. Pound, general counsel of the Music Industries Chamber
of Commerce, received a telegram from Mr. Parker which read:
"Account favorable war developments restrictions on piano industry in-
cluding pianos and player-pianos and automatic pianos and parts therefor
are hereby so modified that for last four months of 1918 the production by
said industry will be on basis of not exceeding two-thirds of four-twelfths of
1917 production, instead of one-third, as provided heretofore; in all other re-
spects rules and regulations remain in full force and effect. Please notify all
members of your industry."
The piano men were enthusiastic over the receipt of the telegram not alone be-
cause it will permit them to increase their production^ but because it is to be ac-
cepted as an indication that the authorities in Washington are, and will be, inclined
to grant relief to industries now laboring under restriction as soon as it is possible to
do so. They see in the order of the Priorities Commissioner bright prospects of an
early return to normal conditions in the matter of production, unless there is sortie un-
expected hitch in the European situation.
It is believed that if Mr. Baruch desires legis-
lation to carry out his back-to-peace-time pro-
gram it will be granted, for he is popular with
Congressmen. This is his announcement:
"For some time to come, assuming the armis-
tice will be signed, for a period to be deter-
mined by the War Making Agencies of the Gov-
ernment, Government contracts must continue
on a wide scale. This circumstance applies to a
considerable share of present contracts.
"As the demand for raw materials is lessened
by the reduction of war requirements and the
cancelation of war contracts, if and when such
cancelations be made, the raw materials so
made available will be released and allocated
by the War Industry Board, for use in supply-
ing civilian and export demands, which through
curtailment have been held in check during the
war.
"In addition to the ordinary commercial re-
quirements there will be a heavy flow of mate-
rials thus released to supply the demand for the
great reconstructional work required by the
European countries.
"At the same time there is to be a gradual
lifting of the restrictions and curtailments that
have been imposed upon industry by the ex-
igency of the war so as to allow as promptly as
possible free flow of all supplies into peace chan-
nels.
"The War Industries Board will continue to
exercise its functions until the peace treaty is
signed, to the end that the readjustment of the
matters on which it has been acting tmay be
made in as orderly a manner as possible^
"A committee named by the President has
been and is now at work to devise the best
mechanism of bringing about the adjustments
from a war to a peace basis. The report of
the committee may take the form of suggested
legislation.
'•
"The whole effect of the readjustment plans
will be to the end of bringing about necessary
changes with as little dislocation as possible and
the full opportunity for all to benefit as in the
past by individual ingenuity, vision 'a"nd fair
dealing."
:;. •> .
TWO NEW INCORPORATIONS
The . Westfall-MarJZ; I^u^?.i£Q.j-.wa5 ; r incor-
porated this week'at Delaware wTtfr~#' T capital
of $50,000. The incorporators are D. J. West-
fall, M. M. Martz, W. D. Martin, all of Pitts-
burgh.
The L. Yosko Mfg. Co., located at 226 West
Thirty-seventh street, New York City, has been
incorporated for the purpose of handling guitars,
mandolins and other musical instruments. The
capitalization of the concern is $10,000.
Have you bought a Thrift Stamp to-day?
THE MUSIC TRADE REVIEW
NOVEMBER 16, 1918
5
THE WAR IS OVER—NOW FOR BUSINESS
(Continued front page 3)
as it is to-day. It means that both divisions of the trade must be able to finance themselves to a great degree,
and to finance themselves means to get cash, or what approximates cash, for the goods they sell.
The trade has had its baptism of fire and the lesson should not go unheeded. The public has been edu-
cated up to substantial prices and cash or short-term buying. It took a war to bring about a selling system
that has been advocated for decades. Let this most desirable selling system, adopted through sheer-necessity,
be maintained from choice.
Without doubt the loosening up of the material market will bring with it a reduction in manufacturing
costs and a subsequent reduction in the price of manufactured products. So much the better from the selling
viewpoint, for more reasonable prices will mean a broader field of distribution.
,
There will be many material benefits to business as a result of the end of the war, aside from the victory
which we have achieved. Let the music trade hold on to the sound credit system as representing one !of
these lasting benefits.
'
FLOOR TAX CLAUSE IS KILLED
Sections 909 and 910 of War Revenue Bill Pro-
viding for Floor Taxes on Manufacturers',
Wholesalers' and Retailers' Stocks Removed
George W. Pound, general counsel of the
Music Industries Chamber of Commerce, an-
nounced this week that as a result of strong ar-
guments made by himself and representatives of
other industries against the inclusion of the
provisions for a floor tax on musical instru-
ments in the new War Revenue bill, the Senate
Finance Committee had removed from the bill
Sections 909 and 910 providing for such a tax.
The seriousness of the floor tax and the dan-
ger it presented to the industry, particularly re-
tailers, was early recognized and strong efforts
immediately put forth to have it removed. As
it stood in the original draft of the bill, a floor
tax of 10 per cent, was levied on all musical in-
struments in the hands of manufacturers, whole-
salers and retailers at the time the bill became
a law, and a payment of this tax would have
proven a heavy burden on piano men generally,
and, in fact, would have threatened bankruptcy
to some of them.
The floor tax iii the present War Revenue bill
applies only to wholesalers, but the proposed
clause in the new measure would have affected
retailers also. The successful fight resulting in
the removal of the objectionable clause from the
bill is looked upon as a decided victory for the
industrial organization, and it is believed that
no attempt will be made to reinsert the same or
similar clauses before the bill becomes a law.
WAR INDUSTRIES SOON TO
BE BACK ON PEACE BASIS
Raw Materials Now Needed for U. S. Contracts
Will Be Released, Announces Chairman Ba-
ruch—Committee to Make Adjustment
WASHINGTON, D. C, November 11.—Now that
we are on the last lap toward a permanent peace
following the signing of the armistice terms with
Germany on Monday morning, it is interesting
to note the attitude of the War Industries
Board toward the resumption of general in-
dustry and the supplying of needed raw mate-
rials to meet the demands of our manufacturers.
In-this connection Bernard N. Baruch, chairman
of the War Industries Board, we understand,
has adopted a policy.for the period between the
signing of an armistice and the agreement on
peace terms.' He has just announced that busi-
ness is to be let back into peace channels
gradually to prevent any disorder or unfair ad-
vantages.
The man who has been manufacturing war
supplies will be relieved of his contracts bit by
bit, so as to prevent confusion or loss. At the
same time the man who has not been engaged
on Government work will be held in check to
keep him from getting ahead of his old peace-
time competitor.
PRIORITIES COMMISSIONER GRANTS PERMISSION
TO PIANO INDUSTRY TO DOUBLE OUTPUT
In Telegraphic Order Issued on Monday He Permits of Production Not Exceeding Two-Thirds of
That of 1917—Order Accepted as Good Omen by Piano Men
'
The signing of the armistice with Germany, announced on Monday of this.week,
brought joy to the piano manufacturing industry in more ways than one, for Ion the
same day there came from Edwin B. Parker, Priorities Commissioner in Washington,
a telegraphic order permitting the piano manufacturers to increase their outpiit from
one-third to two-thirds of their 1917 output, as computed under existing curtailment
orders.
On Monday, George W. Pound, general counsel of the Music Industries Chamber
of Commerce, received a telegram from Mr. Parker which read:
"Account favorable war developments restrictions on piano industry in-
cluding pianos and player-pianos and automatic pianos and parts therefor
are hereby so modified that for last four months of 1918 the production by
said industry will be on basis of not exceeding two-thirds of four-twelfths of
1917 production, instead of one-third, as provided heretofore; in all other re-
spects rules and regulations remain in full force and effect. Please notify all
members of your industry."
The piano men were enthusiastic over the receipt of the telegram not alone be-
cause it will permit them to increase their production^ but because it is to be ac-
cepted as an indication that the authorities in Washington are, and will be, inclined
to grant relief to industries now laboring under restriction as soon as it is possible to
do so. They see in the order of the Priorities Commissioner bright prospects of an
early return to normal conditions in the matter of production, unless there is sortie un-
expected hitch in the European situation.
It is believed that if Mr. Baruch desires legis-
lation to carry out his back-to-peace-time pro-
gram it will be granted, for he is popular with
Congressmen. This is his announcement:
"For some time to come, assuming the armis-
tice will be signed, for a period to be deter-
mined by the War Making Agencies of the Gov-
ernment, Government contracts must continue
on a wide scale. This circumstance applies to a
considerable share of present contracts.
"As the demand for raw materials is lessened
by the reduction of war requirements and the
cancelation of war contracts, if and when such
cancelations be made, the raw materials so
made available will be released and allocated
by the War Industry Board, for use in supply-
ing civilian and export demands, which through
curtailment have been held in check during the
war.
"In addition to the ordinary commercial re-
quirements there will be a heavy flow of mate-
rials thus released to supply the demand for the
great reconstructional work required by the
European countries.
"At the same time there is to be a gradual
lifting of the restrictions and curtailments that
have been imposed upon industry by the ex-
igency of the war so as to allow as promptly as
possible free flow of all supplies into peace chan-
nels.
"The War Industries Board will continue to
exercise its functions until the peace treaty is
signed, to the end that the readjustment of the
matters on which it has been acting tmay be
made in as orderly a manner as possible^
"A committee named by the President has
been and is now at work to devise the best
mechanism of bringing about the adjustments
from a war to a peace basis. The report of
the committee may take the form of suggested
legislation.
'•
"The whole effect of the readjustment plans
will be to the end of bringing about necessary
changes with as little dislocation as possible and
the full opportunity for all to benefit as in the
past by individual ingenuity, vision 'a"nd fair
dealing."
:;. •> .
TWO NEW INCORPORATIONS
The . Westfall-MarJZ; I^u^?.i£Q.j-.wa5 ; r incor-
porated this week'at Delaware wTtfr~#' T capital
of $50,000. The incorporators are D. J. West-
fall, M. M. Martz, W. D. Martin, all of Pitts-
burgh.
The L. Yosko Mfg. Co., located at 226 West
Thirty-seventh street, New York City, has been
incorporated for the purpose of handling guitars,
mandolins and other musical instruments. The
capitalization of the concern is $10,000.
Have you bought a Thrift Stamp to-day?
Future scanning projects are planned by the International Arcade Museum Library (IAML).