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Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
VOL. LXX1II. No. 3
Published Every Saturday by Edward Lyman BUI, Inc., at 373 4th Ave., New York.
July 16, 1921
8ln l
* £.£ > ?!S
International Trade Problems
A
'UDY of the report of the annual convention of the British Music Industries, held recently in Ramsgate,
which report appeared in the last issue of The Review, is particularly interesting to those engaged in
the work of studying and endeavoring to find solutions for trade problems in this country, for it is
clearly shown that British manufacturers and music merchants have problems that are distinctly
similar to those facing the industry in this country.
Perhaps the most interesting proposal made throughout the convention was that for the establishment of
a general trade agreement calculated to eliminate a number of the more flagrant evils. Although it would be
impossible under existing laws to consider seriously a similar agreement in this country, there may be found in
the suggestions offered some ideas that may be developed by the American music trade along different lines.
The ten clauses of the agreement, the whole of which was adopted to be submitted to member associations
for ratification, were:
1. Any scheme for raising revenue for the Federation which has been the subject of agreement between
a particular Association and the Federation to be duly carried out.
2. Publishers and manufacturers to definitely fix retail prices for all their goods.
3. Manufacturers, publishers and retailers to sell to the public only at those fixed prices.
4. Every sale to be a complete transaction in itself without being part of any other transaction;
no inducement to purchase goods to be allowed—such, for instance, as throwing in a music stool, giving free
lessons, etc.
5. Second-hand goods to be accepted in part payment for other goods or otherwise bought or dealt in
only at the fair market price for the goods, less the usual trade profit.
6.. The commission payable to professional musicians or teachers for the introduction of business to be
fixed at the maximum of 5 per cent, and to be paid only when the professional musician or teacher is genuinely
requested to advise on the selection of an instrument.
7. The amount of discount given to professional musicians and teachers on the purchase or sale of sheet
music to be fixed by agreement between the Associations concerned, and the circumstances under which discounts
are payable to be defined, so as to provide that the terms shall be identical, whether offered by a publisher direct
or by a dealer.
8. To define clearly who is eligible to receive wholesale terms. Everyone else to be on retail terms.
9. Prices for tuning, repairing and maintaining instruments to be in accordance with the rate agreed to
by the trade Association or branch as being the minimum rate for the district.
10. The use of the Federation seal to be an intimation that the user is a subscriber to the agreement.
A study of the various clauses indicates that the "throw-in," the "trade-in" and the commission problems
are as bothersome to the British trade as they are to the trade in this country, although we have through force
of argument reduced such evils to a minimum.
There were a number of other matters taken tu> at the British Music Industries Convention that might
prove equally pertinent for consideration at trade conventions on this side of the pond. The .question of the
maintenance of retail branches by manufacturers, the establishment of sole agencies, and the development of the
hire-purchase or instalment business, and the evils growing out of all these, supplied material for lengthy
discussions. It was found that the direct retail branch worked to the disadvantage of the manufacturers in the
eyes of independent dealers, that sole agencies gave ma"ny dealers too great an advantage in rich territories, and
that the return to the practice of granting long terms was likely to prove ruinous to the industry. How very
similar to the problems discussed at our recent conventions are these of the English trade!