The talking machine world (Jan-Dec 1909)

TALKING MACHINE WORLD. 52 THE TRADE NOTES FROM GERMANY. Holiday Business Behind Previous Years — The Outlook — Talking Machine Manufacturers Unite to Protect Their Interest in New Copyright Matters — International Zonophone Co.'s Exchange Arrangement Popular — New Firm to Make Disc Records in Hanover — H. Bahre Closes Branch House — Dealers Fight Against Unfair Competition — Some of the Schemes Condemned as Unfair and How They Work. (Special to The Talking Machine World.) Berlin, Germany, Jan. 5, 1909. Reports coming in from various sections of the Empire indicate that the holiday trade this year fell far short of that for 1907, though quite brisk as compared with business during the past few months. Nor is there any prospect of much improvement in conditions in the near future or so long as there are war clouds in the Balkans and the financial outlook is unsettled. However, the optimistic ones look for a change when the new taxes have been introduced and the country's finances put in order. The talking machine trade bears up well in comparison to other lines. The factories as a rule keep fairly busy and retailers through strenuous efforts are able to make a comparatively good showing. The decision of the Berlin copyright conference to the effect that in future the transfer of music pieces to automatic instruments (talking machines, records, etc.), will be considered an act of piracy, just as reprinting or relithographing, has greatly interested the talking machine and record manufacturers in this country. The decision is to take effect not later than October 1, 1910, and it may perhaps be much earlier in Germany and a royalty must then be paid for all copyrighted music transferred to automatic instruments. As a result of the conference an association of German talking machine manufacturers has been formed to protect the interests of that industry in the matter of copyright. A committee was sent to the office of the Interior and were assured that their demands would be carefully considered before the government took any action on the copyright question in the Reichstag. It is feared that Germany is prepared to take more drastic action on the question than any other country represented at the Berlin conference. The Deutsche Graphonic Gesellschaft, m. b. H., are a new firm who have commenced business in this city under the management of Herr Wilhelm Bree. They have a capital of M. 20,000 and will trade in writing and talking machines. The arrangement made the International Zonophone G. m. b. H. for the redemption of worn records is proving highly popular. The plan, which became effective on December 1, provides that Ms. 50 will be allowed in Germany for every Zonophone record returned on condition that a new one is bought at the time. This firm have recently issued' a lengthy list of Stuttgart records containing band and orchestra selections and a series of folk songs. The Concordia Schallplattenfabrik G. m. b. H. are a new firm who have begun the manufacture of a new disc record in Hanover. The new record is made of specially hard material and are said to give excellent results. H. Bahre have given their branch house in Koln in order to properly handle their extensive trade in this city. Herr Dinkelspiel will, however, act as their representative in Koln, with offices at Moltkerte 52. When some years ago advertisements appeared in the German papers announcing that talking machines were to be "given away," there was a great stir in the ranks of the talking machine dealers. The first advertisements of this kind were worded in such a way as to make the public believe that the talking machines were really "given away," because the conditions connected with the "giving away" were scarcely mentioned. These advertisements afforded the dealers an opportunity of successfully taking legal proceed CONDOR ■■■■■■■■^■■BH is the Only Needle in the World having Each Point Warranted therefore Best Reproduction No Ruin of Record Sole Manufacturer Jos. Zimmermann Needle and Pin Works AACHEN, GERMANY ings, on the ground of unfair competition, against the firms advertising in this way. Under the law against unfair competition any person is liable to punishment who, in booming his goods, endeavors to create "the appearance of an exceptionally favorable offer," if in reality no such exceptionally favorable offer is made. Now an investigation of this "given away" business when the idea was first promoted shows that there is nothing in the nature of an exceptionally favorable offer connected with it, because a purchaser only received a talking machine gratis upon undertaking to purchase a large number of discs and to pay for them in weekly instalments. The article "given away," that is to say the talking machine, did not become his property until the entire amount had been paid. There was further the fact that these firms in their advertisements endeavored to create the impression that the discs were being sold without addition to the price. As a matter of fact, the discs in question could he obtained from any regular retail dealer at m. 2.50 to m. 3 (mark equals about 24 cents), whereas the "given away" firms charged m. 3 for them. After a compromise in a law suit for unfai * competition the "given away" firm undertaking to no longer make use of the advertisement; complained of in the old form, the remaining firms of this class became more careful. They went so far as to hint in their advertisements that anyone wishing to receive a talking machine gratis would have to "subscribe" for a "certain number" of discs. The attempts to induce the public prosecutor to proceed against the people who inserted these advertisements on the ground of unfa'.r competition were not successful, as the authorities took up the standpoint that it was only a "veiled instalment business" which could easily be "seen through." Now, as long as the "given away" firms increased the price of the discs, the competitio i was not of general importance to the dealerr, although it made itself felt in some places. There was also no change in the situation when the "given away" firms in some cases put their own labels on discs, which could be bought in the ordinary course of business for M. 2.50 to M. 3. It was of more importance that the greater part of the public recognized that the discs were practically the same as could be purchased elsewhere at prices ranging from 90 pfg. to M. 1.40 cheaper. The more the public got to know about the different discs manufactured by the various firms the more probable did it become that they would object to the increased prices which the "given away" firms charged for their discs. A change in the situation has taken place since last summer, as in the meantime the largest of the "given away" firms has closed a contract with a prominent disc manufacturer which enables it to supply, even in connection with the "given away" business, an undoubtedly first-class disc at the usual retail price of M. 3. This company have been induced, in consideration of an order for 100,000 discs, to make the "given away' firm a special concession in the matter of price (in well-informed circles there are rumors of M. 1.05 or M. 1.10 as the cost of the discs to the "given away" firm). Under these circumstances the purchaser obtains discs from the "given away" firm at the price which he would have to pay the ordinary dealer for them, both being bound by contract not to sell at less than M. 3. Now, in order to prove to the public that they are, nevertheless, being imposed upon, a leadingLeipzig wholesale house has broken off its connections with the manufacturing concern referred to and has since that time sold these discs below price. This firm, and the dealers who take up the same position, are of opinion that the public must lie shown that these discs are to be had at M. 2.25, so that they see that they are being continually imposed upon by the "given away" firms. The calculation used in support of this contention is as follows: In order to obtain a machine gratis the customer must purchase 45