The talking machine world (July-Dec 1918)

July. 15, 1918 THE TALKING MACHINE WORLD 85 PRESENT TRADE SITUATION AND ITS PROBLEMS REVIEWED (Continued from page 83) that each man in his line of business must spend more thought on ways and means than ever before. We must put on a "Tom Sawyer" front, some whitewash, with a sunny smile and a cheery word. The Victor Talking Machine Jobbers' position is no different than that of many other lines. The tearing of hair because of shipments that are not large enough and after they HAVE been shipped do not arrive, gets us nothing. We want to continually keep in mind that we are marketing the biggest and most popular line of talking machines in the world. Futile individual efforts will accomplish but little, but abiding by and following well-defined principles will bring us ultimate success. We can do our bit by exercising a spirit of cheerful co-operation. We grow by continually altering our views. The last word is never said, and, as conditions change, our opinions must be adjusted. The meeting of the bigger men in our line has always inspired us with stronger purpose, higher ideals and greater enthusiasm, and we all anticipate that some time in the near future we will have the privilege of renewing these acquaintances. MEETING WAR CONDITIONS By J. Newcomb Blackman, President Blackman Talking Machine Co., and National Association of Talking Machine Jobbers Those industries which are doing everything possible to voluntarily and efficiently meet the present war conditions, having always in mind the great reconstruction period which is sure to follow the war, are not only safeguarding the solid foundation on which their business has been built, but are insuring it for the future. In recommending to its membership the cancelation this year of its usual annual convention, the executive committee of the National Association of Talking Machine Jobbers did so in the spirit of meeting patriotically war conditions. Our conventions have always involved considerable expenditure of time and money, by reason of distance traveled and the usual entertainment features. Had the convention been held as ordinarily, the festivities would have been largely curtailed or eliminated. Then, again, aside from the advantages of patriotic co-operation in the war program, there is at present little opportunity to shape constructive policies. This, of course, is owing to the fact that, starting with the factories, trade is curtailed and regulated in a manner best suited to give first consideration to war needs. The factories are not in a position to explain their relations with the Government, and such restrictions as may be necessary in carrying out their obligations for the manufacture of war munitions or general conservation of material and labor. In view of this, it seems best that any matters considered of sufficient importance to be taken up with the factory for the selling side of the business can best be presented through the executive committee, or even a special committee; and this plan has been followed, and probably will be found the wisest one for the future. The war has been, and we hope will prove, a constructive pruning knife for all industries. In the talking machine business the pruning has taken the form of curtailed product, and enforced restrictions, which will bring about needed economies. On the other Hand, the great need of labor and corresponding high prices of wages introduces a serious problem for the distributors and dealers who are not engaged in war work. The factories, no doubt, will maintain full activities, although a large percentage of production may necessarily be Government work. The present standard of excellence represented in the product and selling personnel of our industry has been brought about by the cumulative effort of about twenty years. Patriotic merchants are willing to make any necessary temporary sacrifice through curtailed product and reduced sales as well as profits, but it is to be hoped that this process will be one of a pruning nature, which will not cut so deep as to seriously injure or kill the industrial plant. In other words, distributors and dealers have the same constantly rising costs of doing business. This, of course, means that their overhead has steadily increased. The factories have met like conditions by raising their prices, and so far such raises have been very small compared with similar merchandise; in fact, records and machines to-day, with even considerable further advance, would represent value much greater than was given only a few years back. It is customary in all lines of business to have a retail selling list price, and this has always been regarded by the buyer as the maximum price. This custom has been so uniform that it is quite impossible for a dealer to charge more than the list price without holding himself easily subject to severe criticism as exacting an unfair profit from customers. In order that the trade can continue the efficient representation which the factories must have if we are not to deteriorate as an industry after the war, the margin of profit must be maintained. This is especially so when everything points to continued curtailment of product, which will bring about a corresponding reduction in sales — otherwise talking machines will quickly go back into the bicycle shop and among the kitchen utensils. The talking machine shop should have a special organization, trained to intelligently serve the publit — therefore, cannot safely be reduced or lowered to the plane of the variety store. Future increased prices, owing to additional taxes and other war expenses, will probably be necessary. The factories will do well, in my opinion, to leave sufficient margin between the distributor's cost and the list price, to enable the distributor to sell the dealer at a price which will give him a good margin of profit when selling at list prices. To keep the home fires burning in the talking machine business we must keep the business running. The pruning process will eliminate the drones and parasites, but when our employes, now in the service, return as "Victorious Herocs," I know of no better way to insure a welcome than to say that we are able to offer them an opportunity to resume the activity of their brains and training where they will produce the best results. Concluding, may I say that if we can all curtail, sacrifice, and adjust all business and social life during the war, spreading out the burden as thin as possible, the trying period of reorganization will not be the great problem that many fear. Labor will not have been so shifted and business so upset or ruined that resumption would be impossible for a long period of time. . Our Government officials are realizing the importance of doing this, as indicated by the recent establishment of a War Labor Bureau, which will have in mind conserving labor in each locality, and avoiding the costly disorganizing effect of industries constantly bidding against each other for labor. War activities, it seems, will now be spread more evenly throughout the country, thus making the labor problem an easier one, to say nothing of that of housing labor. The talking machine industry has made great strides to eliminate the first hasty reference to it as" among the so-called "non-essentials," but there is much more that should and can be done. A large part of the money spent in advertising should be used in furthering the sale of Liberty. Bonds, War Savings Stamps, and in ajding the Y. M. C. A., Red Cross and other patriotic drives for funds. Machines and records should be used to the utmost to inspire those at the front and at home. The power of music has been felt and aided victory in the past, and with the help of the entire trade another year will show much greater strides in that direction. DISCUSSING NEW WAR REVENUE BILL Treasury Department Suggests 20 Per Cent. Tax on Musical Instruments — Matter Now Under Consideration by Ways and Means Committee As The World goes to press the new War Revenue bill is still the subject of the hour before the Ways and Means Committee in the House of Representatives at Washington. The Treasury Department has made a number of suggestions in the matter of taxes to be levied on the various lines of industries, the department's figures being based, it is said, upon returns under the present law. The trade will be interested to know that the Treasury Department suggests a 20 per cent, tax on all musical instruments which, it is understood, will include talking machines and records. It is not likely, how-ever, that any such drastic tax will be levied against this industry when the matter is finally threshed out. At the hearings held before the Ways and Means Committee some time ago preparatory to the drafting of the new law at which representatives of various industries appeared, the talking machine trade was ably represented by Marion Dorian, of the Columbia Graphophone Co., New York. Mr. Dorian pleaded strongly for a repeal of the present tax, which he declared had had a serious effect on the industry and emphasized as a reason for leniency the part that the talking machine is playing in supplying music and entertainment for the fighting men in the army and navy, as well as maintaining the courage and patriotism of the people at home. He declared that no other musical instrument was used so extensively as the talking machine in military life. TALKING MACHINE MEN, INC., MEET Next Session Scheduled for July 17 — Philadelphia Association Officials Invited to Be Present at the Meeting in Woolworth Building E. G. Brown, secretary of the Talking Machine Men, Inc., is doing some excellent work in the interests of that organization, this work including the presentation of a report of what occurs at the various meetings. Mr. Brown put the report of the last meeting in rather original form by arranging it so that the first letter of each line appeared in red, and when read in sequence spelled "Talking Machine Men, Inc." The next meeting of the organization will be held in the assembly room of the Merchants' Association in the Woolworth Building on next Wednesday afternoon, July 17, at 2.30 o'clock. An invitation has been extended to the executive committee of the Philadelphia Association to attend the meeting, and it is hoped that a delegation from the City of Brotherly Love will be present. L C. McCHESNEY TAKES A REST It took the orders of a physician to make L. C. McChesney, director of advertising of Thomas A. Edison, Inc., leave his desk for a temporary rest. Mr. McChesney, therefore, has been enjoying, or rather enduring, a brief respite from business cares at his home in Orange, leaving Arthur J. Palmer at the helm during his absence. The Yahr & Lange Drug Co., of Milwaukee, distributor of the Sonora phonograph and records in Wisconsin and Upper Michigan, has announced the appointment of Julius Koepke, Whitewater, Wis., as a new retail dealer in Walworth County. The representation in Milwaukee County is confined to eight retailers of the Sonora, six of whom are located within the city of Milwaukee.