Music Trade Review

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
8
THE MUSIC TRADE
REVIEW
FEBRUARY 28,
1925
Twenty Years of Music Roll Making
United States Music Co., of Chicago, Completes Two Decades of Music Roll Production — A Successful
Business Which Has Been Erected on the Solid Foundation of Recognition of the Fact That
the Player-Piano and the Music Roll Are Mutually Responsible to Each Other
HICAGO, ILL., February 23.
—Two decades, a full twenty
years of successful music roll
manufacturing and merchandising, is
the record held by the United States
Music Co. of this city, a record that
is being duly celebrated by the com-
pany this year. The success of the
venture is due in chief measure to
the constructive efforts of Arthur A.
Friestedt, president of the company,
who came into the business twenty
years ago from the steel industry
and brought with him advanced
ideas regarding business procedure
that have worked out in the music
roll business with a success that is
evident and impressive.
In developing the business of the
United States Music Co., Mr. Fries-
tedt held close to three fundamen-
tal principles: First, that the life
and success of the player-piano rests
squarely upon the character and
cost of the roll; secondly, that busi-
ness growth depends entirely upon
marketing a roll in which a definite
standard of quality is maintained,
and, thirdly, that quantity produc-
tion is the answer to the problem of
producing a roll at a price generally
attractive to the public. Through-
out his career as president, Mr.
Friestedt has never lost sight of
those fundamentals which have dom-
inated every policy of the company.
In carrying on the work of de-
velopment, for instance, it was the
United States Music Co. which, in
1910, produced the composition
spool consisting of a hollow tube
and two flanges to replace the
wooden spool that had previously been in gen-
eral use. The new composition spool not only
overcame the annoying problem of contraction
C
George L. Ames
and expansion, due to atmospheric conditions,
but also made possible a material reduction in
cost.
Arthur A. Friestedt
Realizing that the ultimate success of the
business depended chiefly upon the caliber and
strength of the organization back of it, Mr.
Friestedt at the outset began building such an
organization on a sound, efficient basis, and the
success that has attended him in this work
is indicated by the fact that whereas in 1905
the company employed only about a dozen peo-
ple and produced comparatively few rolls, there
are now on the payrolls over 250 individuals, in-
cluding thirty connected with the Eastern divi-
sion in New York, and the plant has a capacity
of 5,000,000 rolls annually.
As a result of a move made by the United
States Music Co. in 1920 to have its employes
take a direct interest in its welfare in the
capacity of stockholders, it is reported that at
the present time fully 95 per cent of the com-
pany's stock is owned within the organization.
That year also marked the decision of the com-
pany to distribute its rolls through the medi-
um of recognized dealers exclusively, thus elimi-
nating the very substantial amount of business
booked from mail order houses and cut-price
stores.
In February, 1922, it was decided to establish
an Eastern division with headquarters in New
York and that move as carried out despite
existing conditions in the trade made it
appear ill-advised on the surface. Experience
proved, however, that the psychological mo-
ment was chosen for the departure and, under
the management of George H. "Jack" Bliss, the
Eastern division has succeeded to a point where
it has been necessary to expand its quarters
three times and increase the force of employes
from five to thirty. As a result of
his efforts, Mr. Bliss was elected to
a vice-presidency in the company
some time ago.
With the growth in the volume of
business the company has always
given to its dealers the benefit of
decreased costs which arrive with
this development. For instance, in
June, 1922, it announced a reduction
in price of its rolls from $1.25 to $1,
and in April, 1924, continuing this
policy, a further reduction brought
the price to 75 cents. These lower
prices were not achieved at the ex-
pense of quality, but because of a
better organization of production
processes and due to a steadily in-
creasing volume of trade.
The United States Music Co. has
always felt that it owed to the in-
dustry of which it is a part to par-
ticipate in all movements for its
general betterment. An instance of
this is the work which has been
done by the company to popularize
the mid-year inventory instead of
that at the end of the year. About
six years ago it found that the latter
method was injurious in its effects
and, as a result, changed its account-
ing period to a fiscal year ending
June 30. The plan proved so suc-
cessful that the officials of the com-
pany thought it could be adopted
advantageously by most
music
houses, so in the first six months of
1924 the company launched a cam-
paign advocating its adoption by the
music industries especially. In all
its trade paper publicity the plan
was advocated and an intensive
campaign carried out in its favor. It was purely
a contribution of its experience to the music in-
dustries in reciprocity to the industries which
George H.
had made possible its
aroused wide interest
dustry, with the result
(Jack) Bliss
own growth. The plan
both in and out the in-
that business papers and