Phonograph Monthly Review, Vol. 1, No. 11 (1927-08)

work and most generous with their co-operation. We are absolutely confident that there are fifty thousand people in this country alone who own phonographs, are interested in the best music, and from whom we can expect immediate subscriptions once they have seen our magazine. It has been the invariable experience that once the magazine has been seen, or even a reference to there being been uui luaga^iw. , r « .11 1 ; ^.-.♦-^ 1 ,, TU 0 onnnnl tnacra?in<» is direct and forcible: SUCn a pUlJlltdLlUU 1x1 CAXatCUtl,, f 1 • 1 no persuasion is needed to sell it—our task lies only in bringing it to the notice of these prospective readers. Owing to the direct and unique appeal, the opportunity held for the magazine by general newsstand sale is far less than the natural and rich field of exhibition and sales at record dealers and music shops. For experimental purposes,^ we have^jnade three agent ^he two dealers’ shopshere began l^t fall by Jaklng t^o copies a month-now they regularly sell twenty and more of each issue. (Despite the off season, one shop has sold twenty-six copies in the three weeks since publication of the July managers of these shops have been converted from skepticism to the most unrestrained enthusiasm by the delight which their customers take in the publication—and by the actual increase in record sales, estimated by one manager (whose name we shall be glad to furmsh on application) as 33 percent greater than would have been the case without the magazine to bring the fine recordings to the attent on of the P readers. In London, one agent sold twenty-five copies a month and would have doubled this order if we could have supplied hinn Music stores and dealers from all parts of the country have besieged us with requests to obtain copies for sale—all of which must be refused at the present on account of the lack of proper facilities. If the results described above can be obtained in these three instances, they can be obtained in every dealer’s shop—and indeed the magazine cannot be said to fulfill its true mission until it is available in at least one music or phonograph shop in every community in the country. Our friends are wating for us if we can only reach them. In planning for future developments of our work, we must take heed of another consideration, that of the need of an increased personnel, as it is manifestly impossible for our present reduced staff to continue carrying the burden of extra duties that we all have been carrying. We have repeatedly received offers of outside backing or requests for the opportunity of purchasing stock in the company, all of which have been refused, for fear that acceptances would involve danger to the ideals and policies which we have built up for ourselves and which will not be relinquished at any price. However, now that the publication has been put on a self-supporting basis, the release of a limited amount of stock for purchase by sincere music lovers and phonograph enthusiasts only, who would approve of our invariable adherence to artistic ideals, would make development possible, by enabling us to separate the circulation department from the editorial (a necessity proved by both experience and logic). A competent and reliable man could be placed m full charge ot this circulation department, one of the editorial staff would be appointed assistant editor to attend to the editorial details, andI con- sequently I would be released to take over the work of general supervision, the building up of advertising, and the vitally important task of seeking out phonograph enthusiasts and bringing our publication—I might almost say, their publication to their attention. In consideration of all the foregoing, the Board of Directors has decided to make 150 shares of Preferred Stock available for subscription in order to allow those friends who so wish to become investors in the company and to provide the funds necessary tor the development and promotion work described. It must be repeated that this decision involves absolutely no change in the policies or management of the magazine, which will be carried out exactly as before. The restriction is also made that the Company may refuse to accept any investor who it feels would be inimical to the best interests of the publication. The Capital Stock of the Phonograph Publishing Company, Inc., is as follows: 250 shares of Preferred Par value, $100.00 each; 500 shares of Common, no set Par value. Of these 238 Common and 59 Preferred shares are outstanding of which I personally hold 203 Common and 50 Preferred (issued for my preparatory work, services, etc.). Dividends are to be paid out of the net earnings ot the Company to holders of the Preferred stock at the accumulative rate of 7 percent per annum on the par value before dividends are paid on the Common stock. With each of the 150 Preferred shares made available for subscription will be included one share of Common stock, the two to be sold for $100.00. If desired, deferred payments in four quarterly or ten monthly instalments may be arranged. Subscriptions may be sent and checks made out directly to the Company, to be transferred to our brokers, through whom the sale of stock will be made, according to the laws of the State of Massachusetts where the Company is Incorporated. We are making this announcement at this particular time out of consideration of the fact that if development and expansion are to be made, we should begin immediately in order to make the most of the seasonal rush of business beginning in the tall. Other' wise, of course, we shall continue under the same restricted policy as at present. We do not want the usual type of backers or speculative investors. But because we realize that to exploit the possibilities of The Phonograph Monthly Review, to enable it to play the part it should and can play in the world of music and phonograph appreciation, it will be impossible for The Phonograph Publishing Company to remain a closed corporation—we are inviting stock subscribers but only those who are sincere music lovers and friends of the magazine, who believe with us in its brilliant future, and who are convinced that its stock is a thoroughly sound and profitable investment, and that membership in the company is a matter of pride. The soundness and profitability of the Company's shares must be obvious to everyone acquainted with the character and demand for this unique publication—the only one of its kind in America—and with conditions of the publishing business, one of the five leading businesses in the country. The Preferred stock is a safe and sound investment and the accompanying Common shares may soon become a most profitable one—since once the 7 percent dividends on the comparatively few outstanding Preferred shares are met, the remaining profits are divided among holders of the Common shares. (The bonus drainage existing in some companies is prevented by a clause in the bydaws of the corporation which prohibits more than twenty'Six hundred dollars to be paid in bonuses.) However, the possibilities of the Company and the work the magazine can accomplish can barely be touched upon. This announcement is not drawn up in the usual manner and contains no appeal for help of support. This is simply a frank statement of the history of the company, its present status, and its plans for the future. Regardless of the release of stock for subscription. The Phonograph Monthly Review can and will continue publication as usual But if some of our friends wish to invest with us, we shall welcome both them and the opportunity of speeding the publication along the path of progress. The same policy of strict economy will be practiced, obligations will not be incurred, and all of the money invested will be used in the work of development outlined above. We shall be glad to hear from those to whom this announcement is of interest and we take this opportunity of thanking again all of our readers for their support and good wishes for our work and for the many, many letters they have written encouraging our efforts and convincing us anew of the value of The Phonograph Monthly Review s service to music and its greatest medium, the phonograph,—a service whose value we promise to double and redouble as we go on to development of our chosen field. Faithfully yours, THE PHONOGRAPH PUBLISHING COMPANY, Inc., By President and Treasurer