The talking machine world (Jan-Dec 1909)

THE TALKING MACHINE WORLD. 41 open successive accounts with other jobbers, treating them all in the fame fashion. It is obvious that such a dealer as that is no better than a pirate, and you certainly have the power to protect yourselves from his dishonest methods by keeping each other informed of all delinquents and refusing to take on a dealer until you are satisfied that his relations to his former jobber were straight and honorable. Don't be so eager to get new accounts that you cannot take the trouble to look into the matter carefully, and by co-operation among yourselves this very grave menace ought to be completely removed. I urge upon you most strongly to get together on this line. It seems to me that no better indication of the friendly feeling which we entertain for you can be found than in the recent settlement of the long-pending litigation in New York, by which we paid $450,000 in cash to protect the business of the jobbers in New York and elsewhere from molestation. All that we ask is the same sort of a square deal from you that we on our part have always endeavored to give. Our agreement system is admitted by all to be one of the most successful features of the business, and if imitation is the sincerest form of flattery I think that we have good reason to feel that we have been flattered. Almost without exception our jobbers realize that in the matter of these agreements we are in deadly earnest, and that a deliberate violation of their conditions means a quick and summary punishment. But these agreements should not be, and I do not think they are, regarded as a sword of Damocles held by a hair over your heads, but rather as a means for protecting the honest and legitimate jobber from the depredations of an unscrupulous competitor. I feel assured that if our policy regarding these agreements were relaxed to the slightest extent the results would be deplorable, and I hope all of you gentlemen will feel that our policies in this respect are dictated primarily for the purpose of protecting our jobbers and dealers, although, of course, we are selfish enough to know that the effect of such protection will necessarily be helpful to our own interests. No one can disguise the fact that we have passed during the past eighteen months through a period of trial and tribulation, and although the clouds are still hovering in the sky the sun is shining through them here and there with every prospect of their being blown away by the winds of returning prosperity. We must realize that the talking machine business has not been alone in its depression, and we must not be discouraged if it returns more slowly than we might hope. Remember that many workingmen are still only partially employed; that many have no employment; that others are still being inadequately paid, and do not forget that there are grocery bills and doctors' bills and bills for the children's clothing to be paid before a surplus of luxuries is obtained. But there can be no doubt that the pendulum has swung to its farthermost point and is now returning, and as the pendulum swings from a state of rest by gradual accelerations business prosperity will return slowly at first and then with increased rapidity. I have an absolutely unfaltering faith that the talking machine business will not only return to the pinnacle of its highest success, but will go on increasing to unknown heights, because as long as men and women love music and entertainment just so long will they continue to invest their money in the goods that are the basis of the relations between the factory and the jobber. Toastmaster Bowers — We were given to understand, and were under the full expectancy of having with us on this occasion the president of the Victor Talking Machine Co., Eldridge R. Johnson, but he was unable to come, and his place is ably taken by the gentleman who will address you next on the subject, "What is the Future of the Talking Machine Business?" Louis F. Geissler. Louis F. Geissler — Ladies and gentlemen, I had personally hoped until to-day that Mr. John son might be with us, but a few of you who Know Mr. Johnson, know of his diffidence, and the impossibility of getting him out at a large gathering; then, too, he is not well. He has, however, promised that he will be with us on our next visit. Eldridge R. Johnson's Paper. There is nothing whatever astonishing in the development of the talking machine business; there is nothing abnormal in its growth so far; and it has not yet reached its maturity. Thirtytwo strenuous years have passed since Thomas A. Edison first exhibited the new-born infant, destined to become a new industry; and because of the birth of this great art that period will be a landmark for future historians when they write the marvelous account of the social, political and industrial progress of the age in which we are now living — an age that will shine out in the history of a thousand years as the beginning of the balance of human affairs. The Talking Machine's Great Future. Heretofore humanity has been too much engrossed with its more serious affairs, and we are now beginning to learn that we must play as well as work. People are asking themselves, "To what purpose do we live?" The trade union cry of "Eight hours' work, eight hours' play, and eight hours' sleep" is no idle dream; nor is it a ELDRIDGE R. JOHNSON. privilege for which people who work with their hands are alone contending. The world is going to work less and play more; this is the tendency of the times. The talking machine, therefore, if it can only help us in our play — and it can really do many other things — has a great future. It has certainly now reached a stage in its development when it can safely be classed as one of the greatest of intellectual amusements; it now appeals to the intelligence. The talking machine is a part of the affairs of the human race — it has a destiny — it has come to stay. No one can expect unqualified success in any enterprise or undertaking; there will always be ups and downs, but I hope that during my life and business experience no depression in the talking machine business less difficult to' explain than the present depression will occur. The panic of 1907 and its effect on the talking machine trade must be taken as a matter of course. It is nothing but an incident, and is really, when viewed from the proper standpoint, most encouraging, indeed. The Victor Co. has suffered only about as have the well-regulated standard industries, such as steel and the electrical business. This is ample proof without further reasoning that the talking machine is now a standard commodity, because the world makes use of panic periods to rid itself of useless incumbrances. That is what panics are for. The fact that the reliable talking machine companies all over tha world have passed through this panic successfully shows that the talking machine business is not marked for elimination. It proves that talking machines are useful; the world is not tired of them. Edison's Phonographic Fame Imperishable. In further support of my assertion that the business has not yet grown up, consider the electrical development during the last forty years. Franklin 135 years ago called the world's attention to the possibility of electrical magnetism, but he gave us far less satisfactory material for the creation of the new industry than Mr. Edison handed us with his first instrument. Both Franklin and Edison did a great thing, such as does not happen often even when computed in proportion to the history of the human race — they initiated each a new industry and art. Mr. Edison has done many other wonderful things, but as the inventor of the talking machine he will be identified in the long ages to come, and the talking machine will, as will his fame, endure so long as men inhabit the earth. The talking machine is great among the great inventions — it will last. Edison and the talking machine are inseparable in fame. The world waited longer for the infant industry of electricity to find itself than it has waited for the talking machine business. Electrical development passed through the childhood of toy estate just as the talking machine did. It became a half-grown child, most all play but predisposed to serious affairs, as is the talking machine at this very moment; it passed on and has gradually grown into a husky youth with all the vigor and glorious prospects of youth, exactly as the talking machine busines is going to grow and exactly as the ousiness is now growing. The novelty and wonder of the talking machine, which has heretofore been an important factor in the matter of selling, has been losing force rapidly for the last five years. This perfectly natural and healthy change has given birth to the question, "Will talking machines go out of use?" Ail the great arts, when new, have gone through exactly the same process and cnange. P. T. Barnum, about thirty years ago, billed an electric arc light as one of the chief attractions of his "Greatest Show on Earth." Did the business of electric lighting go out when Barnum found it no longer an attractive novelty? Read the answer in the almost incomprehensible figure of total capitalization of electric light and power companies. Passing Out of the Stage of Novelty. The talking machine is passing out of the stage of novelty, and, like the electric and other lines, this will prove a step in advance. They have a use; they fill a long-felt want; and in the place of buying for curiosity the public are now buying for a purpose. This is substantial business. This is where we begin to understand that the business is not a joke. This is where the matter of quality assumes Its proper proportion. Don't forget the business is young — very young. It took the world nearly one hundred years to find a practical use for electricity after Franklin discovered the elements of its control. We are now probably very close to the threshold of important developments in our history, and it is to the development of the art that we must look for our future prsperity; we cannot stand still. There should be no toleration of the degrading practices of price cutting, nor will such practices become more than a passing incident in the history of the art for many years to come. The firm that deals in quality will always find a market for its wares, regardless of the matter of price, providing the price is fair; and the firm that prostitutes its business and sacrifices its future to the enterprise of price cutting will find Itself left by the wayside, stranded by its own foolish short-sightedness. Goods should be sold as low as will yield a profit to a progressive, well-paid organization for manufacturing and selling, wholesale and retail, all the way through until they reach the hands of the customer. A successful enterprise must (Continued on page 44.)