Music Trade Review
Issue: 1920 Vol. 71 N. 3 - Page 5
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
JULY 17, 1920
THE MUSIC TRADE REVIEW
the, decisions of its courts, has always recog-
nized the player-piano as a separate and distinct
instrument and article of commerce, as distin-
guished from both piano and piano player. The
Chamber was successful in its efforts before the
Congress to keep the player-piano from being
named in the bill as subject to taxation. It
therefore believes the action of the Internal
Revenue Department in taxing the player-piano
is arbitrary and unjust and without warrant.
The Chamber has arbitrarily taken these mat-
ters up with the Internal Revenue Department
to' no avail, and it now becomes necessary to
bring suits if the taxes are eventually to be
recovered.
The adjudication of the issues here involved
are vital to the entire music industry, not only
in consideration of the vast sum of money in-
volved both in past and future payments, but
as well to preserve the legal and traditional
status of the player-piano. Success in respect
to the player-piano ruling will have an indirect
but really substantial benefit to the phonograph
and pipe-organ, and all automatic instrument
elements of the industry.
FORMAL OPENING OF McGOY'S
INDIANAPOLIS TRADE BUSY
CHAMBER OF COMMERCE TO SUE FOR EXCISE TAXES
Central Organization to Bring Action Against Internal Revenue Department to Test Legal Status
of So-called Boxing, Board of Education and Player-piano Rulings of the Department
The Music Industries Chamber of Commerce,
by action of its directors, has decided upon en-
ergetic action to force a final decision on the
so-called boxing, board of education and player-
piano rulings of the Internal Revenue Depart-
ment, which the Chamber believes have arbi-
trarily and unjustly taken millions of dollars
from the music industry.
All members of the industry affected by these
rulings will be advised to bring uniform suits
against the Internal Revenue Department for
the recovery of excise taxes paid on player-
pianos, on musical instruments sold to State
and municipal bodies for public use, and on
boxes and packing cases. It is proposed in the
interest of economy to institute a test action,
and to hold in abeyance the causes of action of
all members of the industry except that involved
in the test action, permitting the others to abide
the event. However, it will be necessary even
in these unlitigated cases to file claim for refund
for such taxes so paid. It is very essential that
all these matters be done uniformly, in order
that the same legal theory and practice be main-
tained at all times, and in all instances; other-
wise the test suit may be of no avail in settling
the action for recovery in the suits brought by
individual members of the industry. It is there-
fore urged upon such members of the industry
as are planning to bring similar suits on their
own behalf that nothing be done along these
lines without consultation with the general coun-
sel of the Chamber. A questionnaire is now be-
ing prepared, and will be sent shortly to all in-
dividual members of the Chamber, or members
of the Division Member Associations of the
Chamber who have paid taxes under these rul-
ings, and then from the material thus gleaned
the proper and necessary papers will be pre-
pared, and the individual members of the indus-
try advised of the best procedure. It will be of
the utmost importance that all members of the
Chamber postpone definite action in this matter
pending receipt of final detailed instructions
from the Chamber.
The test suit will strive to recover the tax
paid upon the price of the packing case or box.
This tax was not originally collected under the
present law, but is due to a later interpretation
of the Internal Revenue Department. The music
industry was not itself the subject of attack by
the Internal Revenue Department when this rul-
ing was made. The soft drink manufacturers
started an argument about containers and the
department ended it by decreeing "The amount
paid for both the beverage and closed container
is the basis for computing the tax, though the
container is billed separately." Then by analogy
this ruling was extended to the music industry
and to all others. Both the phonograph and
piano branches of the industry are vitally af-
fected by this boxing ruling.
Originally manufacturers of musical instru-
ments'were expressly directed by the Internal
Revenue Department not to pay nor "pass on"
any taxes on instruments sold to boards of edu-
cation and similar State and municipal bodies,
when bought from public funds for public pur-
poses. Thus a manufacturer assessing any tax
thereon would have been guilty of crime. Months
afterwards, the department completely reversed
this ruling and held that such sales were sub-
ject to tax. Furthermore, the department's rul-
ings are retroactive. Hence the industry was
compelled to pay upon all instruments heretofore
sold. This is an injustice, and the reason why
it is sought to recover the tax paid on such sales.
The board of education ruling is a very im-
portant one, as many phonographs, pianos
and other musical instruments are sold to public
bodies for public purposes.
The Government, in other departments, and by
THE BEST KNOWN
MUSICAL NAME
IN THE. WORLD.
Handsome House of Music Dedicated in Hart-
ford on Wednesday of This Week
Summer Business Assumes Good Proportions
and Instruments of the Better Grade Are in
Demand—Baldwin Managers Hold Meeting
HARTKORD, CONN., July 14.—The formal opening
of the new "House of Music," just erected and
equipped at 87 Asylum street, by McCoy's, Inc.,
was held to-day with an elaborate musical pro-
gram and appropriate ceremonies to mark the
event. The house of McCoy comes to the cap-
ital city of the State with a wide reputation as
music dealers gained in Waterbury, where Mr.
McCoy has been prominently identified with the
music trade for a number of years.
The new quarters here have been fitted up in
a most sumptuous manner and are the most at-
tractive in this section of the State. There is
provided an abundance of wareroom space and
special batteries o,f sound-proof demonstrating
booths for pianos, players and talking machines,
and an attractive recital hall is one of the fea-
tures.
A number of manufacturers and wholesalers
in New York and Boston took occasion to at-
ttnd the formal opening in person and extend
their congratulations and good wishes to Mr.
McCoy.
INDIANAPOLIS, IND., July 12.—Summer business
continues to hold up in encouraging fashion and
several of the piano merchants report that the
July business thus far has exceeded their ex-
pectations.
Local automobile factories have commenced to
reduce their working forces, but th!s condition
is believed to be only temporary and is not seri-
ously affecting the retail trade as yet.
The State Legislature has been called for a
special session beginning next week. Members
of the trade are not expecting any attempt to
be made in behalf of the customary bills direct-
ed against the instalment business as the State
officials are anxious to limit the session to only
necessary business.
Will Carlin, of the Carlin Music Co., com-
mented on the fact that a very good class of
business is being done now. "The people have
the money and we are getting large down pay-
ments and excellent terms," said Mr. Carlin.
"Present business conditions are normal, and
our business is as good as it ever was this time
of the year." Mr. Carlin next week will go to
FOX PIANO CO. ENLARGING
Lake Wawasee for a vacation. Frank Carlin has
Bridgeport Music House to Occupy Greatly In- been enjoying a number of short fishing trips
recently.
creased Space at Present Location
E. G. Hereth, manager of the Baldwin Piano
BRIDGEPORT, CONN., July 7.—The Alfred Fox
Co. store, was in Cincinnati this week attending
Piano Co., this city, has just consummated a deal the semi-annual meeting of Baldwin managers.
whereby in the very near future the quarters it Conditions for the Baldwin business in this ter-
occupies will be increased in the neighborhood ritory look bright, particularly in the wholesale
of 600 per cent. The new space is all in the field, where dealers are giving evidence of brisk
present building. In chatting with Harry C. business in the farming districts.
Norrish, the manager, The Review learned that
A. T. Rapp, of Rapp & Lennox, reported that
the window frontage on the ground floor will while the June business had fallen off July was
be remodeled along superlatively attractive starting off with a rush.
lines. The ground floor will be largely devoted
Edgar Daab, manager of Steinway & Sons
to talking machines and records and the upper store, is planning to take a vacation next week,
floors to nicely fitted piano sales rooms. The when he will visit his folks near St. Louis, Mo.
Fox organization also operates retail music This will be Mr. Daab's second vacation in the
stores in South Norwalk and Stamford. In the seven years he has been with Steinway's. He
Bridgeport branch they handle the Victrola and said that he always found it hard to pull him-
Edison lines of talking machines and the Amer- self away from the business.
ican Piano Co. line, the Mehlin line and several
C. J. Fuller, of the Fuller-Ryde Music Co., said
that the June business exceeded that of June,
of the Kohler line of pianos.
last year, by a good margin. J. B. Ryde and
Mrs. Ryde have returned from Portland, Ore.,
S. G. LINDEMAN MADE PRESIDENT
where they attended the Shriners' convention.
The Pearson Piano Co. is getting ready to re-
It was announced last week that.S. G. Linde-
man had been "elected president of the Melodi- model its basement to which the player roll de-
grand Co. of New York, Inc., succeeding his partment, now on the third floor, will be trans-
father, the late Henry Lindeman. Gillis R. ferred. E. W. Stockdale, manager, said that ten
Lindeman, son of S. G. Lindeman, has been booths would be installed and that a beautiful
department would be provided. The company
elected secretary and treasurer.
has been running a special player sale which
Mr. Stockdale said was stirring up business and
J. J. CLEGG A NEW YORK VISITOR
bringing results.
The E. L. Lennox Piano Co. has just received
Joseph J. Clegg, president of the Clegg Band
Instrument Co., Dallas, Tex., was in New York a Chickering Ampico in Italian walnut of the
Louis XV design, which was specially made for
City last week. Mr. Clegg made a number of
large purchases of musical merchandise, prepar- Henry J. Huder, an Indianapolis druggist. Will-
ing for Fall trade. He reports an unusually iam Christena, manager, said that June proved
good demand for instruments of all kinds to be the record month of the year in point of
throughout the South and particularly in Texas.
ESTEYPIANO CO - P I A N O S * NEW YORK CITY
THE BEST PROFIT
PRODUCER FOR THE
DEALER IN THE TRADE
JULY 17, 1920
THE MUSIC TRADE REVIEW
the, decisions of its courts, has always recog-
nized the player-piano as a separate and distinct
instrument and article of commerce, as distin-
guished from both piano and piano player. The
Chamber was successful in its efforts before the
Congress to keep the player-piano from being
named in the bill as subject to taxation. It
therefore believes the action of the Internal
Revenue Department in taxing the player-piano
is arbitrary and unjust and without warrant.
The Chamber has arbitrarily taken these mat-
ters up with the Internal Revenue Department
to' no avail, and it now becomes necessary to
bring suits if the taxes are eventually to be
recovered.
The adjudication of the issues here involved
are vital to the entire music industry, not only
in consideration of the vast sum of money in-
volved both in past and future payments, but
as well to preserve the legal and traditional
status of the player-piano. Success in respect
to the player-piano ruling will have an indirect
but really substantial benefit to the phonograph
and pipe-organ, and all automatic instrument
elements of the industry.
FORMAL OPENING OF McGOY'S
INDIANAPOLIS TRADE BUSY
CHAMBER OF COMMERCE TO SUE FOR EXCISE TAXES
Central Organization to Bring Action Against Internal Revenue Department to Test Legal Status
of So-called Boxing, Board of Education and Player-piano Rulings of the Department
The Music Industries Chamber of Commerce,
by action of its directors, has decided upon en-
ergetic action to force a final decision on the
so-called boxing, board of education and player-
piano rulings of the Internal Revenue Depart-
ment, which the Chamber believes have arbi-
trarily and unjustly taken millions of dollars
from the music industry.
All members of the industry affected by these
rulings will be advised to bring uniform suits
against the Internal Revenue Department for
the recovery of excise taxes paid on player-
pianos, on musical instruments sold to State
and municipal bodies for public use, and on
boxes and packing cases. It is proposed in the
interest of economy to institute a test action,
and to hold in abeyance the causes of action of
all members of the industry except that involved
in the test action, permitting the others to abide
the event. However, it will be necessary even
in these unlitigated cases to file claim for refund
for such taxes so paid. It is very essential that
all these matters be done uniformly, in order
that the same legal theory and practice be main-
tained at all times, and in all instances; other-
wise the test suit may be of no avail in settling
the action for recovery in the suits brought by
individual members of the industry. It is there-
fore urged upon such members of the industry
as are planning to bring similar suits on their
own behalf that nothing be done along these
lines without consultation with the general coun-
sel of the Chamber. A questionnaire is now be-
ing prepared, and will be sent shortly to all in-
dividual members of the Chamber, or members
of the Division Member Associations of the
Chamber who have paid taxes under these rul-
ings, and then from the material thus gleaned
the proper and necessary papers will be pre-
pared, and the individual members of the indus-
try advised of the best procedure. It will be of
the utmost importance that all members of the
Chamber postpone definite action in this matter
pending receipt of final detailed instructions
from the Chamber.
The test suit will strive to recover the tax
paid upon the price of the packing case or box.
This tax was not originally collected under the
present law, but is due to a later interpretation
of the Internal Revenue Department. The music
industry was not itself the subject of attack by
the Internal Revenue Department when this rul-
ing was made. The soft drink manufacturers
started an argument about containers and the
department ended it by decreeing "The amount
paid for both the beverage and closed container
is the basis for computing the tax, though the
container is billed separately." Then by analogy
this ruling was extended to the music industry
and to all others. Both the phonograph and
piano branches of the industry are vitally af-
fected by this boxing ruling.
Originally manufacturers of musical instru-
ments'were expressly directed by the Internal
Revenue Department not to pay nor "pass on"
any taxes on instruments sold to boards of edu-
cation and similar State and municipal bodies,
when bought from public funds for public pur-
poses. Thus a manufacturer assessing any tax
thereon would have been guilty of crime. Months
afterwards, the department completely reversed
this ruling and held that such sales were sub-
ject to tax. Furthermore, the department's rul-
ings are retroactive. Hence the industry was
compelled to pay upon all instruments heretofore
sold. This is an injustice, and the reason why
it is sought to recover the tax paid on such sales.
The board of education ruling is a very im-
portant one, as many phonographs, pianos
and other musical instruments are sold to public
bodies for public purposes.
The Government, in other departments, and by
THE BEST KNOWN
MUSICAL NAME
IN THE. WORLD.
Handsome House of Music Dedicated in Hart-
ford on Wednesday of This Week
Summer Business Assumes Good Proportions
and Instruments of the Better Grade Are in
Demand—Baldwin Managers Hold Meeting
HARTKORD, CONN., July 14.—The formal opening
of the new "House of Music," just erected and
equipped at 87 Asylum street, by McCoy's, Inc.,
was held to-day with an elaborate musical pro-
gram and appropriate ceremonies to mark the
event. The house of McCoy comes to the cap-
ital city of the State with a wide reputation as
music dealers gained in Waterbury, where Mr.
McCoy has been prominently identified with the
music trade for a number of years.
The new quarters here have been fitted up in
a most sumptuous manner and are the most at-
tractive in this section of the State. There is
provided an abundance of wareroom space and
special batteries o,f sound-proof demonstrating
booths for pianos, players and talking machines,
and an attractive recital hall is one of the fea-
tures.
A number of manufacturers and wholesalers
in New York and Boston took occasion to at-
ttnd the formal opening in person and extend
their congratulations and good wishes to Mr.
McCoy.
INDIANAPOLIS, IND., July 12.—Summer business
continues to hold up in encouraging fashion and
several of the piano merchants report that the
July business thus far has exceeded their ex-
pectations.
Local automobile factories have commenced to
reduce their working forces, but th!s condition
is believed to be only temporary and is not seri-
ously affecting the retail trade as yet.
The State Legislature has been called for a
special session beginning next week. Members
of the trade are not expecting any attempt to
be made in behalf of the customary bills direct-
ed against the instalment business as the State
officials are anxious to limit the session to only
necessary business.
Will Carlin, of the Carlin Music Co., com-
mented on the fact that a very good class of
business is being done now. "The people have
the money and we are getting large down pay-
ments and excellent terms," said Mr. Carlin.
"Present business conditions are normal, and
our business is as good as it ever was this time
of the year." Mr. Carlin next week will go to
FOX PIANO CO. ENLARGING
Lake Wawasee for a vacation. Frank Carlin has
Bridgeport Music House to Occupy Greatly In- been enjoying a number of short fishing trips
recently.
creased Space at Present Location
E. G. Hereth, manager of the Baldwin Piano
BRIDGEPORT, CONN., July 7.—The Alfred Fox
Co. store, was in Cincinnati this week attending
Piano Co., this city, has just consummated a deal the semi-annual meeting of Baldwin managers.
whereby in the very near future the quarters it Conditions for the Baldwin business in this ter-
occupies will be increased in the neighborhood ritory look bright, particularly in the wholesale
of 600 per cent. The new space is all in the field, where dealers are giving evidence of brisk
present building. In chatting with Harry C. business in the farming districts.
Norrish, the manager, The Review learned that
A. T. Rapp, of Rapp & Lennox, reported that
the window frontage on the ground floor will while the June business had fallen off July was
be remodeled along superlatively attractive starting off with a rush.
lines. The ground floor will be largely devoted
Edgar Daab, manager of Steinway & Sons
to talking machines and records and the upper store, is planning to take a vacation next week,
floors to nicely fitted piano sales rooms. The when he will visit his folks near St. Louis, Mo.
Fox organization also operates retail music This will be Mr. Daab's second vacation in the
stores in South Norwalk and Stamford. In the seven years he has been with Steinway's. He
Bridgeport branch they handle the Victrola and said that he always found it hard to pull him-
Edison lines of talking machines and the Amer- self away from the business.
ican Piano Co. line, the Mehlin line and several
C. J. Fuller, of the Fuller-Ryde Music Co., said
that the June business exceeded that of June,
of the Kohler line of pianos.
last year, by a good margin. J. B. Ryde and
Mrs. Ryde have returned from Portland, Ore.,
S. G. LINDEMAN MADE PRESIDENT
where they attended the Shriners' convention.
The Pearson Piano Co. is getting ready to re-
It was announced last week that.S. G. Linde-
man had been "elected president of the Melodi- model its basement to which the player roll de-
grand Co. of New York, Inc., succeeding his partment, now on the third floor, will be trans-
father, the late Henry Lindeman. Gillis R. ferred. E. W. Stockdale, manager, said that ten
Lindeman, son of S. G. Lindeman, has been booths would be installed and that a beautiful
department would be provided. The company
elected secretary and treasurer.
has been running a special player sale which
Mr. Stockdale said was stirring up business and
J. J. CLEGG A NEW YORK VISITOR
bringing results.
The E. L. Lennox Piano Co. has just received
Joseph J. Clegg, president of the Clegg Band
Instrument Co., Dallas, Tex., was in New York a Chickering Ampico in Italian walnut of the
Louis XV design, which was specially made for
City last week. Mr. Clegg made a number of
large purchases of musical merchandise, prepar- Henry J. Huder, an Indianapolis druggist. Will-
ing for Fall trade. He reports an unusually iam Christena, manager, said that June proved
good demand for instruments of all kinds to be the record month of the year in point of
throughout the South and particularly in Texas.
ESTEYPIANO CO - P I A N O S * NEW YORK CITY
THE BEST PROFIT
PRODUCER FOR THE
DEALER IN THE TRADE
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