Music Trade Review
Issue: 1924 Vol. 79 N. 12 - Page 7
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
SEPTEMBER 20, 1924
THE MUSIC TRADE REVIEW
Code of Band Instrument Makers Is
Endorsed by Federal Trade Commission
Federal Authorities Give Official Approval to Code of Ethics Adopted by Association Designed
to Eliminate Subsidies and Other Evils—Promises Support in Enforcement
VyASHINGTON, D. C, September 15.—The
* * official approval of the Government has
been given the Code of Ethics adopted on Jan-
uary 1, last, by manufacturers of band instru-
ments. Following a trade practice submittal
held before Commissioner Van Fleet, of the
Federal Trade Commission, at Chicago on Jan-
uary 15, the Commission has announced that it
will take cognizance of violations of those sec-
tions of the Code relating to the subsidizing of
musicians. As regards other matters covered
by the Code, the commission will consider them
as representing the views and opinions of the
industry.
The trade practice submittal at Chicago was
held at the request of members of the industry
and was attended by F. A. Buescher and James
A. Bell, of the Buescher Band Instrument Co.,
Elkhart, Ind.; J. C. Cox and C. H. Taylor, of
Frank Holton & Co., Elkhorn, Wis.; A. P.
Bassett, of the Martin Band Instrument Co.,
Chicago; C. H. Flint, representing the E. A.
Couturier Band Instrument Co., Lyon & Healy,
Inc., and William Frank Co., Chicago, and
Alfred L. Smith, secretary of the National As-
sociation of Band Instrument Manufacturers,
New York. C. D. Greenleaf, of the C. G. Conn
Co., Ltd., Elkhart, Ind^ who is president of the
Band Instrument Manufacturers' Association,
who was unable to attend the conference, wrote
a letter to the Commission expressing his ap-
proval of its aims.
The Code of Ethics, which has been given
the approval of the Commission, is as follows:
"The use, ownership or recommendation of any make of
band instrument by a professional musician, or by any
other person who for some reason may be supposed to be
specially well informed about or have an exceptional
opportunity to judge the real merits of band instruments,
is accepted by the buying public as indicating honest
preference for that make of instrument, based solely on
merit. Thus a false and misleading impression is created
when there has been a secret inducement of any kind.
"The subsidizing secretly of prominent musicians and
others by manufacturers and dealers in band instruments
for the advertising value to be derived therefrom has
developed or tended to develop unfair competition, im-
proper trade practices and unfair prfce discrimination to
buyers, and has misled the public. Such a condition of
affairs is detrimental to the best interest of both the
industry and the buying public.
"There are various methods of subsidizing professional
musicians. It has been a more or less common practice
to give to bands, orchestras and individual musicians the
instruments they require professionally.
Sometimes the
instruments have been merely loaned. Also in a few
cases prominent professional musicians have been paid
salaries to induce them to use certain instruments.
of musical enterprises or organizations are typical indirect
subsidies.
"The granting of subsidies has been by no means con-
fined to prominent professional musicians. A secret spe-
cial discount to an influential member of the village band
is no different in effect from the payment of a large
salary to an artist of international reputation, lie may
be any person whose ownership or advocacy of a particular
make of band instrument for some special reason adds
to the reputation of that instrument in the community.
"Even when no subsidy is involved, the granting of
excessive allowances for used instruments taken in ex>
change is against public interest. It constitutes price
discrimination, and is unfair to customers who have no
instruments to exchange or who trade in their instruments
at a fair valuation.
Overallowances are conducive to
the development of misleading and improper trade prac-
tices, such as quoting fictitiously high prices and making
false reductions on new instruments when no used instru-
ment is taken in exchange. Furthermore, a consistent
policy of granting overallowances on used instruments
leads inevitably to either business failure or to a regular
policy of overpricing of new instruments to the consequent
detriment of the buying public. The evil of granting
overallowances is frequently promoted by ignorance of
the real value of the instrument taken in exchange and
the difficulty of obtaining accurate information on that
subject.
"In view of these facts and in the public interest, the
undersigned manufacturers and dealers in band instru-
ments do hereby agree not to subsidize musicians or
others in any manner whatsoever, and to this end they
agree specifically:
"1. That they will not give away instruments to
prominent musicians or others;
"2. That they will not loan instruments for the purpose
of having them used by prominent musicians or others;
"3. That they will not pay salaries, fees or gratuities to
induce prominent musicians or others to use or recom-
mend their instruments;
"4. That they will not grant to prominent musicians or
others secret discounts or rebates, or special terms not
available to retail customers generally; and
"5. That they will not grant allowances in excess of
the actual value of second-hand instruments taken in ex-
change for new.
"(Signed) C. Bruno & Son, liuegeleisen & Jacobson,
Buescher Band Instrument Co., C. G. Conn, Ltd., E. A.
Couturier Band Instrument Co., Cundy-Bettoney Co., W.
J. Dyer & Bro., Carl Fischer, William Frank Co., Fred
Gretsch Mfg. Co., Frank Holton & Co., J. W. Jenkins'
Sons Music Co., Leedy Mfg. Co., Ludwig & Ludwig, Lyon
& Healy, Inc., Martin Band Instrument Co., Pan-Amer-
ican Band Instrument and Case Co., Harry Pedler Co.,
Inc., 11. & A. Selmer, Inc., The Vega Co., H. N. White
Co., Rudolph Wurlitzer Co. and J. W. York & Sons."
Advertising New Q R S
Music Roll Container
New Box Introduced by Prominent Music Roll
Company Featured in National Advertising
in the Various September Magazines
In following up the broadsides to the trade
announcing the introduction of the new music
roll box with end opening by the Q R S Music
Co., the national advertising of that company
will carry to the public the announcement of
the new box in a series of most attractive
advertisements, among them one appearing in
the Literary Digest of September 20, which
(Continued from page 5)
describes and illustrates the new box construc-
it appeals to him as something very beautiful; tion in a most convincing manner. The na-
he is fascinated, he stops; he sees the piano and tional advertising should insure the fact that
the beautiful model; he imagines his wife or his the attractive features of the new box register
daughter in her place; he thinks of the beau- so strongly with the public as to bring new
tiful picture the piano would make in the corner business directly to the dealer's store.
of his own living room, and of soft music while
he-is.relaxing after dinner . . . Thus, by pro-
viding the setting, the atmosphere and the ob-
ject of interest, the merchant had produced, in
John T. Wood, late of the floor staff of the
turn, attraction, fascination, inspiration and at piano department of John Wanamaker, New
last the desire for possession.
York, has been added to the sales force of Fred-
-During the Winter months music in the home crick Loeser & Co.'s piano department in
makes a stronger appeal than ever and in the Brooklyn. Mr. Wood, who was assistant floor
same seasons more window shopping is done manager under Morris Lamb, at Wanamaker's,
during the evening hours. Plan your window will wait exclusively on the floor trade.
displays with the idea that they can reach
J'aul C. Ressler, of Pomona, Cal., has bought
out into the street v for your customers. And
remember, more than anything else, lighting can out the interest of Perry Hopkins in the Ressler
put the spirit into your windows that will make Music Co., 365 West Second street, with the
the cash register play that cheerful tune.
latter's resignation,
Victrola No. 125
Mahogany, $275; electric, $315
Walnut, $325; electric, $365
Victor supremacy
is the supremacy
of performance
Year a f t e r year for a
quarter-century V i c t o r
achievements have led the
way in the talking-machine
industry. It means some-
thing to be a d e a l e r in
Victor products.
Other styles $25 to $1500
"Not all subsidies, however, are direct.
Preferential
discounts, special instruments at regular prices, extra
plating or engraving on instruments without charge,
'abnormal allowances for used instruments taken in ex-
change,' i. e., 'traded in,' special terms of credit, sub-
scriptions to or payments of advertising or other expenses
Making Show Window Music
HIS MASTERS VOICE 1
There is but one Victrola and
that is made by the Victor Company
—look for these Victor trademarks.
John T. Wood With Loeser's
Victor Talking
Machine Co.
Camden, New Jersey
Virtor T.ilkint! M.iclime Co
of CJIKKLI. Lie!., Montreal
SEPTEMBER 20, 1924
THE MUSIC TRADE REVIEW
Code of Band Instrument Makers Is
Endorsed by Federal Trade Commission
Federal Authorities Give Official Approval to Code of Ethics Adopted by Association Designed
to Eliminate Subsidies and Other Evils—Promises Support in Enforcement
VyASHINGTON, D. C, September 15.—The
* * official approval of the Government has
been given the Code of Ethics adopted on Jan-
uary 1, last, by manufacturers of band instru-
ments. Following a trade practice submittal
held before Commissioner Van Fleet, of the
Federal Trade Commission, at Chicago on Jan-
uary 15, the Commission has announced that it
will take cognizance of violations of those sec-
tions of the Code relating to the subsidizing of
musicians. As regards other matters covered
by the Code, the commission will consider them
as representing the views and opinions of the
industry.
The trade practice submittal at Chicago was
held at the request of members of the industry
and was attended by F. A. Buescher and James
A. Bell, of the Buescher Band Instrument Co.,
Elkhart, Ind.; J. C. Cox and C. H. Taylor, of
Frank Holton & Co., Elkhorn, Wis.; A. P.
Bassett, of the Martin Band Instrument Co.,
Chicago; C. H. Flint, representing the E. A.
Couturier Band Instrument Co., Lyon & Healy,
Inc., and William Frank Co., Chicago, and
Alfred L. Smith, secretary of the National As-
sociation of Band Instrument Manufacturers,
New York. C. D. Greenleaf, of the C. G. Conn
Co., Ltd., Elkhart, Ind^ who is president of the
Band Instrument Manufacturers' Association,
who was unable to attend the conference, wrote
a letter to the Commission expressing his ap-
proval of its aims.
The Code of Ethics, which has been given
the approval of the Commission, is as follows:
"The use, ownership or recommendation of any make of
band instrument by a professional musician, or by any
other person who for some reason may be supposed to be
specially well informed about or have an exceptional
opportunity to judge the real merits of band instruments,
is accepted by the buying public as indicating honest
preference for that make of instrument, based solely on
merit. Thus a false and misleading impression is created
when there has been a secret inducement of any kind.
"The subsidizing secretly of prominent musicians and
others by manufacturers and dealers in band instruments
for the advertising value to be derived therefrom has
developed or tended to develop unfair competition, im-
proper trade practices and unfair prfce discrimination to
buyers, and has misled the public. Such a condition of
affairs is detrimental to the best interest of both the
industry and the buying public.
"There are various methods of subsidizing professional
musicians. It has been a more or less common practice
to give to bands, orchestras and individual musicians the
instruments they require professionally.
Sometimes the
instruments have been merely loaned. Also in a few
cases prominent professional musicians have been paid
salaries to induce them to use certain instruments.
of musical enterprises or organizations are typical indirect
subsidies.
"The granting of subsidies has been by no means con-
fined to prominent professional musicians. A secret spe-
cial discount to an influential member of the village band
is no different in effect from the payment of a large
salary to an artist of international reputation, lie may
be any person whose ownership or advocacy of a particular
make of band instrument for some special reason adds
to the reputation of that instrument in the community.
"Even when no subsidy is involved, the granting of
excessive allowances for used instruments taken in ex>
change is against public interest. It constitutes price
discrimination, and is unfair to customers who have no
instruments to exchange or who trade in their instruments
at a fair valuation.
Overallowances are conducive to
the development of misleading and improper trade prac-
tices, such as quoting fictitiously high prices and making
false reductions on new instruments when no used instru-
ment is taken in exchange. Furthermore, a consistent
policy of granting overallowances on used instruments
leads inevitably to either business failure or to a regular
policy of overpricing of new instruments to the consequent
detriment of the buying public. The evil of granting
overallowances is frequently promoted by ignorance of
the real value of the instrument taken in exchange and
the difficulty of obtaining accurate information on that
subject.
"In view of these facts and in the public interest, the
undersigned manufacturers and dealers in band instru-
ments do hereby agree not to subsidize musicians or
others in any manner whatsoever, and to this end they
agree specifically:
"1. That they will not give away instruments to
prominent musicians or others;
"2. That they will not loan instruments for the purpose
of having them used by prominent musicians or others;
"3. That they will not pay salaries, fees or gratuities to
induce prominent musicians or others to use or recom-
mend their instruments;
"4. That they will not grant to prominent musicians or
others secret discounts or rebates, or special terms not
available to retail customers generally; and
"5. That they will not grant allowances in excess of
the actual value of second-hand instruments taken in ex-
change for new.
"(Signed) C. Bruno & Son, liuegeleisen & Jacobson,
Buescher Band Instrument Co., C. G. Conn, Ltd., E. A.
Couturier Band Instrument Co., Cundy-Bettoney Co., W.
J. Dyer & Bro., Carl Fischer, William Frank Co., Fred
Gretsch Mfg. Co., Frank Holton & Co., J. W. Jenkins'
Sons Music Co., Leedy Mfg. Co., Ludwig & Ludwig, Lyon
& Healy, Inc., Martin Band Instrument Co., Pan-Amer-
ican Band Instrument and Case Co., Harry Pedler Co.,
Inc., 11. & A. Selmer, Inc., The Vega Co., H. N. White
Co., Rudolph Wurlitzer Co. and J. W. York & Sons."
Advertising New Q R S
Music Roll Container
New Box Introduced by Prominent Music Roll
Company Featured in National Advertising
in the Various September Magazines
In following up the broadsides to the trade
announcing the introduction of the new music
roll box with end opening by the Q R S Music
Co., the national advertising of that company
will carry to the public the announcement of
the new box in a series of most attractive
advertisements, among them one appearing in
the Literary Digest of September 20, which
(Continued from page 5)
describes and illustrates the new box construc-
it appeals to him as something very beautiful; tion in a most convincing manner. The na-
he is fascinated, he stops; he sees the piano and tional advertising should insure the fact that
the beautiful model; he imagines his wife or his the attractive features of the new box register
daughter in her place; he thinks of the beau- so strongly with the public as to bring new
tiful picture the piano would make in the corner business directly to the dealer's store.
of his own living room, and of soft music while
he-is.relaxing after dinner . . . Thus, by pro-
viding the setting, the atmosphere and the ob-
ject of interest, the merchant had produced, in
John T. Wood, late of the floor staff of the
turn, attraction, fascination, inspiration and at piano department of John Wanamaker, New
last the desire for possession.
York, has been added to the sales force of Fred-
-During the Winter months music in the home crick Loeser & Co.'s piano department in
makes a stronger appeal than ever and in the Brooklyn. Mr. Wood, who was assistant floor
same seasons more window shopping is done manager under Morris Lamb, at Wanamaker's,
during the evening hours. Plan your window will wait exclusively on the floor trade.
displays with the idea that they can reach
J'aul C. Ressler, of Pomona, Cal., has bought
out into the street v for your customers. And
remember, more than anything else, lighting can out the interest of Perry Hopkins in the Ressler
put the spirit into your windows that will make Music Co., 365 West Second street, with the
the cash register play that cheerful tune.
latter's resignation,
Victrola No. 125
Mahogany, $275; electric, $315
Walnut, $325; electric, $365
Victor supremacy
is the supremacy
of performance
Year a f t e r year for a
quarter-century V i c t o r
achievements have led the
way in the talking-machine
industry. It means some-
thing to be a d e a l e r in
Victor products.
Other styles $25 to $1500
"Not all subsidies, however, are direct.
Preferential
discounts, special instruments at regular prices, extra
plating or engraving on instruments without charge,
'abnormal allowances for used instruments taken in ex-
change,' i. e., 'traded in,' special terms of credit, sub-
scriptions to or payments of advertising or other expenses
Making Show Window Music
HIS MASTERS VOICE 1
There is but one Victrola and
that is made by the Victor Company
—look for these Victor trademarks.
John T. Wood With Loeser's
Victor Talking
Machine Co.
Camden, New Jersey
Virtor T.ilkint! M.iclime Co
of CJIKKLI. Lie!., Montreal
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