Music Trade Review
Issue: 1945 Vol. 104 N. 8 - Page 10
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
the dealer will take it on the chin with less margin of
profit. This of course does not only apply to the piano
business. It will effect many other commodities includ-
ing practically everything handled by a general music
merchant.
The
Congress Is Still Your Best Bet
REVIEW
I
Established 1879
CARLETON CHACE, Editor
E. L Easton
Alexander Hart
Associate Editor
Technical Editor
Betty B. Borin
Circulation Manager
Published monthly at 510 RKO Building, Radio
City, 1270 Sixth Avenue, New York 20, N. Y.
Telephones: Circle
Vol. 104
7-5842-5843-5844
AUGUST, 1945
No. 8
Business —As We See It
OW the "squeeze" is on the retailer. On you, Mr.
Dealer, and it looks as if it is going to be YOU
who must use your atomic energy in order to
save your business skin. The piano manufacturers have
put up a valiant fight which finally culminated in getting
to the man higher up, in this instance the Congress, to
whom we have been advocating an
appeal for the last six months, and
a precedent was finally set by OPA
in giving one manufacturer an in-
crease of 62A ( /f which has per-
mitted him to operate. Previously
to that this company tried to sup-
ply the retailers with pianos until
it lost over $100,000 and then quit.
With this criterion set, other manu-
facturers will soon be in a position
to manufacture on a greater scale,
as great as the limited manpower
and supply situation will permit,
and gradually we will again have
Carleton Chace
an expanding piano business. The
OPA, however, says that the retailer will have to absorb
at least some of this increase. In view of the fact that
the retailer was not getting his usual margin of profit
before, to again cut this down is creating a desperate
situation for the piano dealer. In the meantime the public
will pay over twenty percent more for new pianos while
L
10
F President Truman hasn't already called Congress back
into session by the time this editorial is off the press
it is safe to believe, in view of the present interna-
tional situation, that he will by September. Both Senators
and Congressmen are at present in the humor to clap down
on the OPA due to recent developments which have oc-
curred since the adjournment of Congress, in New York
and other territories. This was manifested somewhat in a
letter which was printed last month in THE REVIEW from
the Hon. Ralph A. Gamble, Representative from West-
chester County, New York, in which he said: "I am satis-
fied that unless OPA changes their present line of thinking
along these lines that the Congress is going to pretty
promptly crack down on them because I know from the
discussions in the Committee that the members have this
situation very much in mind." E. R. McDuff, president of
the National Association of Music Merchants has sent an
appeal to music merchants to protest to the OPA regarding
this retail "squeeze." He has suggested that actual figures
be quoted where possible. This should be done immedi-
ately. In addition, however, we suggest that you send a
copy of your pritest to both the Senator and Congressman
from your district. This certainly cannot do any harm.
The Congress is vitally interested in reconversion just at
this time and it may do a lot of good. Anyway it's the
Congress that tells OPA what and what not to do.
Some Manufacturers
Are
Stymied
ALTHOUGH the increase in the price ceiling for
AAV manufacturers may have been a step forward
-^*- - ^ - toward faster reconversion those manufacturers
who have been devoting their entire time to war work
are completely stymied. For instance the amendment to
the order states that a manufacturer may apply for an
increase if he has been manufacturing pianos at a loss 90
days previous to the date of the application. This means
that unless he has been manufacturing pianos and wishes
to start up again he has to manufacture pianos for ninety
days at the old 13% increase and lose money for ninety
days before he can apply for an increase. There are sev-
eral manufacturers in this class who certainly are not going
to start up again under these circumstances as the loss
could be considerable in even so short a period as ninety
days. After all, pianos should be put on the "de-controlled"
list. With manpower and supplies limited, production
would have to be gradual at best. As this commences to
grow and competition again asserts itself pricing would
gradually take care of itself. We can't imagine any excess
profits for some time to come and the ludicrous part of
this whole situation to us is that if there were excess profits
the government would take it away from a manufacture in
THE MUSIC TRADE REVIEW, AUGUST, 1945
the dealer will take it on the chin with less margin of
profit. This of course does not only apply to the piano
business. It will effect many other commodities includ-
ing practically everything handled by a general music
merchant.
The
Congress Is Still Your Best Bet
REVIEW
I
Established 1879
CARLETON CHACE, Editor
E. L Easton
Alexander Hart
Associate Editor
Technical Editor
Betty B. Borin
Circulation Manager
Published monthly at 510 RKO Building, Radio
City, 1270 Sixth Avenue, New York 20, N. Y.
Telephones: Circle
Vol. 104
7-5842-5843-5844
AUGUST, 1945
No. 8
Business —As We See It
OW the "squeeze" is on the retailer. On you, Mr.
Dealer, and it looks as if it is going to be YOU
who must use your atomic energy in order to
save your business skin. The piano manufacturers have
put up a valiant fight which finally culminated in getting
to the man higher up, in this instance the Congress, to
whom we have been advocating an
appeal for the last six months, and
a precedent was finally set by OPA
in giving one manufacturer an in-
crease of 62A ( /f which has per-
mitted him to operate. Previously
to that this company tried to sup-
ply the retailers with pianos until
it lost over $100,000 and then quit.
With this criterion set, other manu-
facturers will soon be in a position
to manufacture on a greater scale,
as great as the limited manpower
and supply situation will permit,
and gradually we will again have
Carleton Chace
an expanding piano business. The
OPA, however, says that the retailer will have to absorb
at least some of this increase. In view of the fact that
the retailer was not getting his usual margin of profit
before, to again cut this down is creating a desperate
situation for the piano dealer. In the meantime the public
will pay over twenty percent more for new pianos while
L
10
F President Truman hasn't already called Congress back
into session by the time this editorial is off the press
it is safe to believe, in view of the present interna-
tional situation, that he will by September. Both Senators
and Congressmen are at present in the humor to clap down
on the OPA due to recent developments which have oc-
curred since the adjournment of Congress, in New York
and other territories. This was manifested somewhat in a
letter which was printed last month in THE REVIEW from
the Hon. Ralph A. Gamble, Representative from West-
chester County, New York, in which he said: "I am satis-
fied that unless OPA changes their present line of thinking
along these lines that the Congress is going to pretty
promptly crack down on them because I know from the
discussions in the Committee that the members have this
situation very much in mind." E. R. McDuff, president of
the National Association of Music Merchants has sent an
appeal to music merchants to protest to the OPA regarding
this retail "squeeze." He has suggested that actual figures
be quoted where possible. This should be done immedi-
ately. In addition, however, we suggest that you send a
copy of your pritest to both the Senator and Congressman
from your district. This certainly cannot do any harm.
The Congress is vitally interested in reconversion just at
this time and it may do a lot of good. Anyway it's the
Congress that tells OPA what and what not to do.
Some Manufacturers
Are
Stymied
ALTHOUGH the increase in the price ceiling for
AAV manufacturers may have been a step forward
-^*- - ^ - toward faster reconversion those manufacturers
who have been devoting their entire time to war work
are completely stymied. For instance the amendment to
the order states that a manufacturer may apply for an
increase if he has been manufacturing pianos at a loss 90
days previous to the date of the application. This means
that unless he has been manufacturing pianos and wishes
to start up again he has to manufacture pianos for ninety
days at the old 13% increase and lose money for ninety
days before he can apply for an increase. There are sev-
eral manufacturers in this class who certainly are not going
to start up again under these circumstances as the loss
could be considerable in even so short a period as ninety
days. After all, pianos should be put on the "de-controlled"
list. With manpower and supplies limited, production
would have to be gradual at best. As this commences to
grow and competition again asserts itself pricing would
gradually take care of itself. We can't imagine any excess
profits for some time to come and the ludicrous part of
this whole situation to us is that if there were excess profits
the government would take it away from a manufacture in
THE MUSIC TRADE REVIEW, AUGUST, 1945
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