The talking machine world (Jan-June 1928)

The Talking Machine World, New York, June, 1928 ^ zJPor dealers f wholesalers' fimanufachim of phonograph^ zradioproducts, (Registered ill the U. S. Patent Office) FEDERATED BUSINESS PUBLICATIONS, Inc. President, Raymond Bill; Vice-Presidents, J. B. Spillanc, Randolph Brown; Secretary and Treasurer, Edward Lyman Bill; Assistant Secretary, L. B. McDonald; Assistant Treasurer, Wm. A. Low. RAYMOND BILL, Editor C. R. TIGHE, Managing Editor LEE ROBINSON, Business Manager B. B. WILSON, Associate Editor V. E. MOYNAHAN, Assistant Editor ERANK L. AVERY, Circulation Manager Eastern Representatives: E. B. Munch, Victor C. Gardner, A. J. Nicklin Western Division: Republic Building, 209 So. State Street, Chicago, 111. Telephone, Wabash 5242. Leonard P. Canty, Manager. ISoston: John H. Wilson, 324 Washington Street. London, Eng., Representative: 24 Daylands Rd., Church End N. S. The Talking Machine World has regular correspondents located in all of the principal cities throughout America. Published the 15th of every month at 420 Lexington Ave., New York SUBSCRIPTION (including postage): United States, Mexico, $2.00 per year; Canada, $3.00; all other countries, $4.00. Single copies, 25 cents. ADVERTISEMENTS: $6.50 per inch, single column, per insertion. Advertising pages $172.00. On yearly contracts for display space a special discount is allowed. REMITTANCES should be made payable to The Talking Machine World by check or Post Office Money Order. Telephone: Lexington 1760-71 Cable: Elbill New York Vol. 24 JUNE, 1928 No. 6 Power of Concerted Action THE success of the Music Industries Chamber of Commerce, backed by the protests of hundreds of members of the music industry and by other outside interests, in persuading the Senate Finance Committee to amend the New Revenue Tax Bill to relieve merchants selling on instalments from the burden of being called upon to pay double taxes on their accounts, is a matter for congratulation. As a result of the Senate action the Conference Committee accepted the amendment with only a slight alteration, although the House had turned it down, and as a result the amendment was included in the final bill as passed by Congress on May 26, and signed by the President on May 29. This favorable result represents a distinct tribute to the effectiveness of concerted action and of persistent protest. Robbing Peter to Pay Paul WHEN a dealer sells a portion of his instalment paper to a finance company, for the purpose of securing liquid capital with which to discount his bills and provide for sound business expansion, he is making proper use of a service that is calculated to keep business moving. When, however, he realizes upon his paper for the purpose of paying current running expenses he is likely to be storing up trouble for himself. Financing costs are prohibitive unless the cash realized can be used for business purposes that will bring in profits in excess of the discount charges. Otherwise it is a case of robbing Peter to pay Paul. An Important Announcement r HE announcement by the Victor Talking Machine Co., late last month, that prizes aggregating $40,000 in cash for original compositions by American composers is one of outstanding importance, for it serves to reflect once again the substantial part that the talking machine and its makers have played and are playing in the development of musical instruments and appreciation in this countrv. In addition to offering what is believed to be a record prize of $25,000 for a symphonic composition considered by the judges to be the best of those submitted, the Victor Co. has gone a step further and given formal recognition to the lighter forms of music, wi h a first prize of $10,000 and a second prize of $5,000 for a concert number that may be played by the American dance, jazz or popular concert orchestra. If the enthusiasm of a notable com pany gathered to hear the announcement is to be regarded seriously then the move is one of the most far-reaching importance for the composers of American birth. Radio Commission Takes Action THE seriousness with which the Federal Radio Commission regards its work of regulating broadcasting and insuring programs that measure up to a certain standard of excellence is evidenced by the announcement that unless they can show cause why their stations should continue on the air after August 1 one hundred and sixty-two broadcasters will have their licenses canceled on that date. Even free air has become a thing of the past. New Business Comes First I ^ HE replacement business as a factor in building up sales volume in the retail radio field in the near future must be given due consideration, but it is not at all wise to give to that factor an importance it does not deserve. Replacement business means trade-ins, double selling, and, unless properly handled, shaded profits. Handled conservatively it helps build up the gross, but it should come only after the field for new sales has been worked intensively. In short, it will not pay to neglect the new for the old. Bargain Prices Kill Confidence BARGAIN prices never built public confidence. They may attract business for a time, and, if made for an honest and legitimate purpose, may serve to move stock quickly, but if persisted in, they serve to interfere with rather than aid selling. The radio trade has had its share of the bargain fiends — of the type of dealer who depends upon sensational announcements to move his stocks without offering any notable values to those who fall for his appeal. It has taken the better element of the industry some few years to offset even a portion of this influence of the bargain store, and it is still a problem that must be regarded seriouslv by those who seek to build an industry that will hold business through confidence and respect rather than through cut-prices. A Tie-Up of Importance THE tie-up of talking machine interests with motion picture film activities, following upon the close association of the phonograph and the radio, has established a triumvirate the possibilities of which even the leaders of the industry cannot fully conceive. It is a tie-up that makes for the holding of public interest and the establishment of the buying urge, and at that is hailed only as leading to even bigger things. Big Things in the Offing THERE are some big things stirring in the talking machine-radio field these days, with formal announcements in the offing that may properly be expected to portend substantial business progress for the future. Among the talking machine manufacturers, particularly, there is an evident desire to keep doing things for the purpose of holding public interest. It is evident that the one-time mistake of resting on the oars with smug satisfaction in past accomplishments is not going to be repeated. W ork for the Association THE industry that possesses a strong trade association is equipped for self-regulation to a degree which, if wisely directed, will effectively preclude Governmental interference by rendering it unnecessary." This is from a speech by Abram F. Myers, a member of the Federal Trade Commission, and offers still another, and, in a sense, official endorsement of the trade association idea. The music industry has done much along this line, but there is still much to do. Dangerous Ground A HIGHLY patriotic 100 per cent American talking machine dealer in the Middle West advertises widely "American music for Americans." He probably confines his stock exclusively to recordings of American-Indian chants and folk songs. Otherwise he is treading on dangerous ground.