Music Trade Review

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IUNK 13, 1925
THE
MUSIC TRADE
REVIEW
Chamber of Commerce Activities
During the Past Year
The Annual Reports of General Manager Alfred L. Smith, C. M. Tremaine, Director Bureau for the Ad-
vancement of Music, C. L. Dennis, Director of the Better Business Bureau and Trade Service
Bureau, and of the Credit Bureau, Which Are Maintained by This Organization
TjH)LLOWING the practice of the last couple
*• of years, the reports of the general manager
and the various bureau heads of the Music
Industries Chamber of Commerce were not read
at the Chamber meetings proper held in connec-
tion with the official luncheons, but were pre-
sented separately to each individual Association
at the time of its meeting, thus giving its mem-
bers a first-hand opportunity for discussing the
various phases of the Chamber's work as they
affected the divisional members' interests.
As a matter of convenience, therefore, the
various reports of Chamber officials, with the ex-
ception of that of the president, which appears
elsewhere, are presented herewith.
Report of the General
Manager Alfred L. Smith
T TAKE pleasure in reporting the election to
*~ membership during the year of the National
Association of Musical Instrument & Accessories
Manufacturers and the National Piano Tech-
nicians' Association. The Music Publishers' As-
sociation of the United States has withdrawn
because-of dissatisfaction over the Chamber's atti-
tude concerning revision of the Copyright Act.
The individual members of the Chamber number
twenty-six firms, of which two were admitted dur-
ing the year. There are four membership applica-
tions pending. Two members resigned during the
year, another retired from business and a fourth
was dropped for non-payment of dues.
Legislative Activities
The Internal Revenue Bill of 1924, which had
just been reported from the Conference Committee
a year ago, was passed. The exemption of musical
instruments from the 5 per cent jewelry tax, in-
serted in the bill as a result of the Chamber's
efforts, became effective on July 3.
Karly in January the Perkins Bill to amend the
COpyright Act was introduced in Congress. It
extended drastically the rights of copyright owners,
eliminated registration formalities and discon-
tinued the mechanical license provision upon which
the commercial development of the mechanical
reproduction of music has been based. The bill
was written for and- at the request of authors
and composers, without any consideration of
the rights or interests of the industries using
copyrighted works.
The introduction of the bill was a surprise to
practically all of the industries adversely affected,
but it was evidently thoroughly understood in ad-
vance by authors, composers and publishers. Hear-
ings.were called upon very short notice. Although
the Music Publishers' Association of the United
States was a member of the-Chamber, its most
influential members belonged also to associations
which were already actively in favor of elimina-
tion of mechanical license and apparently looked to
them, rather than the Chamber, for representation.
At any rate, they did not notify the Chamber of
the introduction of the bill nor of their interest
in it.
After careful consideration, our board of di-
rectors decided that the best interests of the
entire music industry would be jeopardized by
such a drastic extension of copyright, and by
the consequent'hold which one branch of the
music industry would have on practically all
the rest of the industry through complete con-
trol of new music. Therefore, the Chamber
went on record in opposition to the Perkins
Bill.
In a series of hearings before the Committee
on Patents, the Chamber led the opposition for
the musical interests. As a result of the strenu-
ous opposition, the Committee took no action
on the bill. The conflicting interests are now
will probably result in drastic changes in the
existing regulations, but no final decision has
been reached. Assistance has been rendered
to several members who have had difficulty
with the Treasury Department in connection
with the auditing of reports rendered upon in-
stalment basis.
Bureau Activities
Most of the activities of the Chamber are
carried on through its various Bureaus, and the
annual reports of the Bureau Managers are at-
tached hereto and make a part of this report.
The prestige of the National Bureau for the
Advancement of Music has grown remarkably
throughout the country. While this has been
most gratifying, the urgent requests for addi-
tional assistance from many individuals and or-
ganizations engaged in promoting music, and
in whose success the music industry is vitally
interested, has created a problem. It has been
difficult to confine this work within the limits
made possible by available funds.
The effectiveness of the music promotional
work has likewise increased until now the
Bureau is in the unusual position for a promo-
tional organization of distributing its literature
almost entirely upon request, making the dis-
tribution almost 100 per cent effective.
Alfred L. Smith
As a result largely of the work of the Trade
General Manager, Chamber of Commerce
Service Bureau in suggesting means of taking
endeavoring to agree upon a bill which can advantage of the music promotional activities,
be endorsed by all. For this purpose represent- the trade has been connected locally with the
atives of this Chamber are in conference with
Music Week movement, Music Memory Con-
representatives of the music publishers upon tests and similar activities in a much more satis-
those features involving musical copyright. The factory way than ever before. The assistance
probability of agreement, however, is remote, which can be rendered by this Bureau is now
and it appears certain that another bill will be receiving considerable attention from the ad-
introduced in the next Congress, backed by even
vertising and sales managers of the larger com-
more determined effort to eliminate mechanical panies. However, the Bureau's facilities have
license.
not received the attention they should from the
The coming year promises to be a very stren- music merchants generally, and this is to be
uous one for the Chamber from a legislative regretted, for they are the members to whom
standpoint.
the work should appeal most.
Transportation Matters
On account of business conditions, the past
The Chamber presented a brief in October
year has been a bad one for advertising stand-
before the Consolidated Classification Commit- ards, and the amount of questionable advertis-
tee, proposing that the rates now applying to ing referred to the Better Business Bureau has
phonographs be applied to phonographs with been unusually large. The campaign against so-
radio installation, and opposing any higher called "bait" advertising, which has proceeded
rates. The request was refused by the rail- satisfactorily, has received much publicity, but
roads. New and higher rates were announced, most of the work of this character has nec-
effective February 1, 1925. The Chamber then essarily proceeded in a very quiet but none the
petitioned the Interstate Commerce Commission
less effective manner.
for a suspension of these rates, and joined with
The Chamber can proceed in matters of ques-
the Radio Manufacturers' Association in re- tionable business methods only to the extent
questing a suspension of the increased rates on that it is backed whole-heartedly by at least a
radio sets. The petitions were granted, and the substantial group of reputable members of the
rates were suspended until June 10. Joseph C. industry. The Chamber is simply the mechan-
Colquitt, Traffic Attorney of Washington, was ism of the industry, and in any activity of this
retained by the Chamber. The two cases were peculiar character it cannot be stronger than
argued on April 7 and 8. The decision of the the industry that is behind it. This should be
Committee is still pending.
realized by those who are inclined to criticize
The Chamber is now taking up with the Con- the Chamber for lack of results at times in
solidated Classification Committee a request for so-called "better business" cases. After all, the
lower rates on drums. The work upon trans- most difficult and most important task of the
portation matters has been with the advice of
Chamber in such matters is to develop a favor-
the newly formed Committee on Transporta- able trade opinion, and if it fails to accomplish
tion.
definite improvement of certain business prac-
Income Tax Regulations
tices, the failure can usually be traced directly
The attitude of the Treasury Department con- to a lack of real desire for such improvement
cerning the reporting of income upon instalment
by an appreciable portion of the reputable mem-
basis has required considerable attention. The bers of the trade.
United States Board of Tax Appeals in the case
The volume of work of the Credit and Col-
of R. B. Todd, Inc., rendered a decision which
(Continucd on pa