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JANUARY 22,
1921
THE MUSIC TRADE REVIEW
39
REFUTES RUMORS OF REDUCTIONS IN VICTOR PRICES
SEEK CHANGE IN PENNSYLVANIA LAW
Ralph L. Freeman, Director of Distribution of the Victor Talking Machine Co., in Replying to
Inquiry of A. D. Geissler, Shows Why Present Prices Must Be Maintained
Efforts Being Made to Have Amended the Law
Permitting of Seizure of Talking Machines in
Cases of Execution Sales for Rent
Some very interesting and illuminating cor-
respondence has recently ensued on the sub-
ject of prices for Victor records and Victrolas
between A. D. Geissler, president of the New
York Talking Machine Co., Victor wholesaler
of New York City, and Ralph L. Freeman, di-
rector of distribution, Victor Talking Machine
Co., Camden.
Mr. Geissler originally wrote to the Victor
Co. that rumors were persistent among certain
Victor dealers to the effect that a reduction in
the prices of both machines and records was
imminent, and asking if there was any reason
for believing these rumors would prove true.
Mr. Freeman's letter in response very clearly
sets forth the price situation in so far as it af-
fects Victor products, and makes it evident that
no reduction in the price of either Victor rec-
ords or Victrolas is likely at this time. Mr.
Freeman's letter follows verbatim:
"December 31, 1920.
"New York Talking Machine Co.,
New York, N. Y.
"Gentlemen:—Responding to your letter of
December 30, we desire to say that there is ab-
solutely no foundation in fact for any rumors
to the effect that the Victor Co. is contemplating
reductions in its prices for its products, either
instruments or records.
"We have not made any general statement
on this subject for the reason that it appeared
to be impossible to adequately cover in a con-
densed statement the many features which have
enabled the Victor Co. to offset the great dif-
ference between its increase in cost of produc-
tion and the relatively small increase in its
prices.
"On June 29 last, at Atlantic City, our presi-
dent stated that during the war period the
Victor Co. had handled an increase in cost of
labor and material of at least 166 per cent, with
only about 34 per cent increase in its prices.
Since that date we have made no increases in
our prices, but the last figures available, those
for the three months ended September 30, 1920,
show still further increases in cost of produc-
tion, due to the fact that we are now using
materials purchased at higher prices than those
heretofore effective with us.
"One factor that has been most effective in
stabilizing this company's prices during the last
five years has been the strong financial position
which had been developed for the very purpose
of taking care of some such emergency, and
which has enabled the company to purchase its
requirements of materials at better prices than
were generally quoted. A considerable portion
of the difference between increase of production
costs and increase of prices has been taken out
of our profits, but the most important factor in
the whole situation has been the ingenuity of
our organization in devising improved equip-
ment whereby manufacturing costs could be re-
duced without deterioration in quality.
"The policy of the Victor Co. has always
been to do a large business on a moderate per-
centage of profit. Circumstances of the last
few years have reduced our margin of profit to
the point where it cannot be considered satis-
factory or adequate for the maintenance of our
organization. We believe that further advances
in prices may be avoided, but certainly there
can be no consideration of any downward re-
vision in our prices until actual reductions in
cost have been accomplished sufficient to allow
the Victor Co. a safer margin of profit. Pre-
dictions against the future are always hazardous
and we would not care to assume the responsi-
bility of issuing any guarantees or doing more
than give you a frank statement of the situa-
tion as it now appears to us. We cannot see
any possibility of developments which would
enable us to reduce our prices in- the near
future. Very truly yours,
"VICTOR TALKING MACHINE CO.,
'Ralph L. Freeman, Director of Distribution."
P. J. BURNS' NEW POST
Edison Sales Manager Joins Metropolitan
Forces as Sales Promotion Manager
P. J. Burns, until recently sales manager of
the Amberola Department at the Edison Labora-
tories, has resigned that position to become sales
promotion manager for The Phonograph Cor-
poration of Manhattan, Edison jobbers for New
York City and the metropolitan district.
Mr. Burns has been associated with the Edison
Laboratories in various capacities for miore than
P. J. Burns
a decade and brings to his new position a wealth
of experience gained through close application
to his numerous responsibilities during that
time. Back in 1907, several years before the
advent of the New Edison disc, he joined the
Edison organization to become an office boy
and junior clerk. Promotion "followed rapidly,
and in August, 1919, after having devoted sev-
eral years to various phases of sales promotion
work at the Orange laboratories, he went on the
road to act as territorial supervisor in the Do-
minion of Canada. The Amberola Department,
of which he was in charge during the past ten
months, has shown remarkable results under his
careful guidance.
Asked for a statement, Mr. Burns remarked:
"There is no doubt about the possibilities of the
New Edison in the metropolitan district. The
immense population of this district is in touch
with the best in art and music and it is merely
a matter of time and education before the re-
creation of music is fully recognized. I am
glad that my new duties will provide the oppor-
tunity to co-operate with the local dealers in
serving the music-loving public of New York."
COLUMBIA BRANCH IN TORONTO
The Columbia Graphophone Co. has recently
opened up its first branch house in Canada
serving the retail trade direct. This establish-
ment is located at 204 St. Catherine street,
Montreal, with Hector Garand as manager.
An effort is to be made at the present session
of the Pennsylvania State Legislature in Har-
risburg to have amended the law which at pres-
ent permits of the seizing of pianos, talking
machines and other musical instruments for rent.
The. amendment, which reads as follows, has
Leen introduced through the efforts of the
Music Industries Chamber of Commerce:
"An act to exempt talking machines, phono-
graphs and musical instruments of every descrip-
tion leased or conditionally sold to or hired by
any person or persons residing in or having a
place of business in this Commonwealth, from
levy or sale on execution or distress for rent.
"Section 1. Be it enacted, etc., that all talk-
ing machines, phonographs and musical instru-
ments of every description leased, conditionally
sold to or hired by any person or persons re-
siding in or having a place of business in this
Commonwealth under a lease or contract of sale
reserving title in the owner, lessor or vendor
until paid for, shall be exempt from levy and
sale on execution or distress for rent due by
such person or persons so leasing or condition-
ally purchasing or hiring any such talking
machines, phonographs and musical instruments
of every description, in addition to any articles
or money now exempt by law, so long as the
title thereto remains in the owner, lessor or
vendor; provided, that the owner, lessor or
vendor of such talking machines, phonographs
and musical instruments of every description,
or his or their agent or agents or the person
or persons so leasing or conditionally purchas-
ing or hiring the same shall give notice to the
landlord or his agent that the said talking ma-
chines, phonographs and musical instruments of
every description are leased, conditionally sold
or hired."
Dealers throughout Pennsylvania are urged
to support the measure by writing to their State
senators and assemblymen in its favor. "In my
judgment every help should be given to have
the bill passed," said George W. Pound, general-
counsel for the Chamber. "The present law is
a discrimination against the talking machine and
against music, and the moral effect is bad.
Every music merchant should write to his
legislative representatives in favor of the act."
SECURED VICTROLA ON BAD CHECK
Long Island News Co. Loses Victrola XVII to
Swindler—Trade Asked to Be on Lookout
The Long Island News Co. reports that a
man representing himself as Edward Nostrand,
a resident of Flushing, L. I., called at the store
of the News Co. on December 15 and purchased
a Victrola XVII, Serial No. 8437, in English
brown finish, for which he gave a check. The
check was later returned marked "N. G.," and in-
vestigation proved that in the house where the
machine had been delivered the man had held
a room only two days. The machine was traced
to a tea and coffee store in New York, and
there all trace was lost.
The man is described as being about five feet
five inches tall, smooth shaven, florid com-
plexion, and representing himself as a civil
engineer. Dealers and* repairmen are asked to
be on the lookout for the machine, Serial No.
8437, and to notify the manager of the Flushing
store of the Long Island News Co. at 45 Main
street.
John F. Pentland has opened a new music
store in Toronto, O.