The talking machine world (Jan-June 1919)

72 THE TALKING MACHINE WORLD July 15, 1919 LIVELY GENERAL CONVENTION OF VICTOR JOBBERS AT ATLANTIC CITY— (Continued from page 71) Attendants at the General Convention of the National Association of Talking number of our New York members are codefendants. The clear and concise explanation and advice given by him in our two last general meetings, as well as his guidance in association procedure, have been extremely valuable. Revenue Bill Work Our efforts to avoid unreasonable and discriminating taxation have been very successful. The final tax in the 1917 Revenue bill of 3 per cent, on the manufacturers' sale price and a 1^ per cent, floor tax was really a compromise after many hearings and conferences in Washington, in which the Victor Co. and our association took a prominent part. The United States Chamber of Commerce, evidently through ignorance of the facts, presented our industry in a most unfavorable light in its referendum number 25 — recommending drastic tax measures. Victrolas were all classed as luxuries, and a 20 per cent, tax on the retail price L. C. Wiswell, Free of Convention Worries recommended. Discrimination was apparent, although no doubt unintended, for other musical instruments were classed more favorably and some exempted. Protest on Referendum No. 25 Owing to the influence of this national body and its referendum I filed a strong protest with Mr. Goodwin, the secretary, which was published in the trade papers, and used by our secretary as a brief for the same purpose when our executive committee voted on the referendum in question. Later developments indicated that our efforts were successful. 1918 Revenue Bill The 1918 Revenue bill necessarily taxed heavily almost everything except war merchandise. The original House bill imposed a tax of 10 per cent, on the manufacturer's sale price, as well as a floor tax. The need for revenue was so urgent that the representatives of our trade hesitated to protest too strongly. Convincing arguments finally resulted in the entire elimination of the proposed floor tax and the reduction to 5 per cent, on the manufacturers' sales. The net result was a 2 per cent, increase over the existing 3 per cent, tax in the 1917 bill. The Victor Co. met the situation in the manner now so well known and appreciated by absorbing and paying this increase. Federal Trade Commission's Hearings For the purpose of determining the merits of contending claims on the uniform price question the Federal Trade Commission conducted hearings in Washington on October 3, 4 and 5, 1917. A large attendance and free discussion resulted. Henry C. Brown and members of our association took a prominent part in the debate. The outcome may be best judged by'the Roy J. Keith and Parham Werlein commission's recommendations to Congress in December of last year, that suitable legislation be enacted to protect reputable manufacturers against unscrupulous price cutters. The Stevens bill was referred to specifically as meeting the situation if amended to provide supervision by the commission. This amendment has since been made. Action by the Department of Justice The action of the Department of Justice investigating and declaring unlawful the continuance of certain sales policies affected the Victor Co. and many other manufacturers. In Chas. K. Bennett, P. J. and T. H. Towel! the spring of 1918 new Victor prices were announced and the trade were advised that they must exercise their own judgment as to sales and resale prices. Fair Trade League Our executive committee and members in open session unanimously agreed that we should join the American Fair Trade League and become permanent contributors. Your president was elected to the board of directors of the league to fill the vacancy caused by the resignation of Louis F. Geissler. At the re cent annual meeting of the league the reports of Secretary Whittier and the league counsel, Joseph C. Davies, former chairman of the Federal Trade Commission, were extremely encouraging. The general impression is that with continued efforts the Stevens bill or other suitable legislation will be passed by Congress this session. The Executive Meeting in January Our executive committee meeting January 27 and 28, 1919, included two open sessions and was probably the most important and successful ever held. My report and recommendations contained so many subjects of permanent importance that I would like to present part of them at this time for further consideration. A special committee was appointed to prepare a report from the executive committee to the Victor Co. containing also certain suggestions and recommendations. The spirit in Wm. Nolan, Who Took Care of the Ladies which they were received by the Victor officials showed an unmistakable desire to cooperate to the fullest extent. The response was almost immediate and perhaps the most important action taken was to equalize distributors' costs by a freight allowance announced in the company's letter, to take effect March 1, 1919. Increased and Concentrated Production The factory has promised to use every possible resource to greatly increase production. Our suggestion to concentrate manufacture on machines and records in immediate demand has been carried out very largely. The result has been that goods received have been at once sold and waste of labor and material in manufacture has been reduced to a minimum. Record Supplement and Cut-out List Monthly supplement issues have been kept down and the August list omitted for a purpose, I believe, generally approved. The large cutout list announced will be a valuable guide and eventually afford much relief in record stocks. Summarizing and without regard to preference I recommend that: First — We continue our activities in the interests of legislation, such as the Stevens bill, and endeavor to accomplish the elimination of the present 5 per cent, manufacturers' tax. Second — We continue our affiliation with, and support of, the American Fair Trade League.