GENERAL INFORMATION. ACT OF OCTOBER 3, 1913. PAR. 373. Musical instruments or parts thereof, pianoforte actions and parts thereof, cases for musical instruments, pitch pipes, tuning forks, tuning hammers, and metronomes; strings for musical instruments, composed wholly or in part of steel or other metal, all the foregoing, 35 per cent ad valorem. PAR. 374. Phonographs, gramophones, graphophones, and similar articles, or parts thereof, 25 per cent ad valorem. DESCRIPTION. The principal classes of musical instruments manufactured in the United States are pianos, with and without player attachments; organs, reed and pipe; piano and organ materials; and phonographs and records. There are also a variety of instruments and materials manufactured under the class known as "Musical instruments and materials, not specified," which include wind and string instruments of many varieties. Importations of foreign instruments of the principal classes above mentioned have been so small as to be almost negligible. The statistics of imports do not disclose the individual items, but it is quite certain that they consist mainly of violins, other stringed instruments, orchestrions and accordions, and small instruments requiring a great deal of hand labor or special skill in their manufacture. DOMESTIC PRODUCTION. Size and importance of the industry.—In 1914 there were 737 establishments, capitalized at a total of approximately $170,000,000, engaged in the manufacture of musical instruments or parts thereof and phonographs. Nearly 50,000 wage earners were employed, and the value of the products was only a little less than $120,000,000. Materials, equipment, and methods of production.-Piano manufacture has become standardized to a great extent, the same style piano of different factories usually possessing but few distinguishing external characteristics other than the name on the fall board. The first and one of the most important steps in the manufacture of a high-grade piano is the selection and seasoning of the wood. The wood used is almost entirely of American growth, the only notable exceptions being the ebony for the black keys and the expensive woods for veneers. "Just as Italian and Tyrolese forests made Amati violins possible in Cremona, so American lumber has made it possible to bring piano making to its highest perfection in this country." The seasoned wood is usually glued together under pressure so as to effect a permanent joint. Very few metal bolts or screws are used in the framework, as they are liable to work loose. Both tonal quality and strength are secured by gluing the parts. The metal plate is a casting of great strength, and its manufacture is an important step in the making of a piano. The sounding board 1 Census of Manufactures, 1902, Part IV, Vol. X, p. 454. 64912-21-N-23—2 is made from carefully selected spruce pine. The wire must be of great elasticity. The laying out of the scale and the arrangement of the wire and the action or striking mechanism require expert ability. In the manufacture of reed organs practically all of the materials are strictly American products, even the ivory and ebony formerly used for the keys now being supplanted by celluloid and a stained wood. Very little expensive veneer is used. The manipulation of the tongue of the reed to a proper size and curve and the determining of the size of the reed cells, and qualifying cells, when such are used, are the most delicate of the operations involved in its manufacture. The primary operation in the construction of a pipe organ, and that of the most importance, is the construction of the pipes. They are made of wood or metal, and require the greatest skill in voicing and tuning. The bellows or electric fan for furnishing the wind must be made to correspond to the size of the organ. The action of the keys is now usually electric. Both the metal parts entering into the mechanism of the phonograph and the wood for the cabinets or cases are entirely American materials, excepting expensive veneers for the cabinets. The waxlike materials entering into the construction of the records are also entirely produced in the United States. Organization. There is a great tendency in the industry toward the corporate form of ownership with large factories having a high capitalization. In the piano and organ branch of the industry in 1914, 67.4 per cent of the total number of establishments, 92.5 per cent of the average number of wage earners, and 91.8 per cent of the value of products were controlled by corporations, the corresponding percentages for 1909 being 61.9, 86.1, and 85.7, respectively. Establishments whose annual output was valued at $100,000 or more turned out 90 per cent of the value of products in 1914 and 88.8 per cent in 1909. There were 478 establishments reported in this branch of the industry in 1914, with a total capitalization of $130,989,794 making the average capitalization of each about $270,000. This branch of the industry represents about 76 per cent of the capitalization of the entire musical instrument industry. The form of ownership of establishments manufacturing musical instruments and materials not specified is not given by the census, but the average capitalization of the 241 establishments in 1914 was about $16,000 each. In 1909 there were 187 establishments reported, with an average individual capitalization of approximately $18,000. This branch of the industry has shown considerable fluctuation in the number of establishments, but the total capitalization and the total value of the products have both remained practically constant since 1899 at approximately $3,500,000. This branch of the industry represented only about 3 per cent of the total value of the products of the entire industry in 1914. The character of ownership of the phonograph branch of the industry is not available, but it is known that a number of the principal manufacturers are large corporations. The capitalization of the 18 establishments reported in 1909 and 1914 increased from over $14,000,000 to approximately $34,000,000, which represented an average capitalization in 1914 of nearly $2,000,000 for each firm. The value of the products increased from $12,000,000 to $27,000,000 during the same period, and the number of persons engaged increased from 5,928 to 11,366. Geographical distribution.-Pianos, organs, and materials: Based upon the value of products, the first four States for the years 1914 and 1909 were New York, Illinois, Massachusetts, and Connecticut. New York produced 37.2 per cent of the total in 1914, and Illinois produced 22.2 per cent. The two States combined produced nearly three-fifths (59.4) of the total value of products in 1914. The next six States, following the four enumerated above, were Indiana, Ohio, New Jersey, Michigan, Pennsylvania, and Wisconsin. Musical instruments and materials, not specified: The three leading States in 1916, based upon value of products, were Indiana, Illinois, and New York. In 1909 they were New Jersey, Illinois, and Indiana. New Jersey dropped to fifth place in 1914. In both years the three leading States together reported more than one-half of the total value of products. Other States in 1914 were Massachusetts, Michigan, and Pennsylvania. Phonographs: Both in 1914 and 1909 New Jersey was, by far, the leading State, measured by value of products, followed by Connecticut and New York in the order named. History of the industry. The development of the industry has taken place almost entirely since the year 1850. It is also true that the most important inventions have been applied since that time. Just what effect the various tariff rates may have had upon the development of the industry is difficult to determine, but the facts do not seem to indicate that its development is traceable so much to the tariff rates as to the improvements in the manufacture of the instruments and the growth of the market for them. The value of the products of the industry has shown a remarkable but steady increase since 1849. In round numbers the values of the products of the combined industry for the census years are as follows: 1849, $2,000,000; 1859, $7,000,000; 1869, $14,000,000; 1879, $19,000,000; 1889, $37,000,000; 1899, $47,000,000; 1904, $80,000,000; 1909, $105,000,000; 1914, $120,000,000. The imports in 1872, the first year musical instruments were separately reported, amounted to only 7.6 per cent of the domestic production as reported in the nearest census year, and they declined to 4.8 per cent of the domestic production in 1880. There was no duty placed on musical instruments until 1883, when a duty of 25 per cent ad valorem was imposed. Foreign competition had evidently little effect upon the early development of the industry, and in this 30-year period from 1849 to 1879 the yearly value of the products had increased from $2,000,000 to $19,000,000, without any protection afforded by the tariff. The imports in 1890 amounted to 4.6 per cent of the domestic production, practically the same as in 1880, but both the imports and domestic production had nearly doubled in value since the year 1880. Some of the most important improvements in piano manufacture were being put into use during this 10-year period, and the market for instruments was no doubt expanding in a manner corresponding with the development of their manufacture. There was a tariff of 25 per cent ad valorem in effect during this period. In 1890 musical instruments were not enumerated in the tariff act, but in 1894 the duty of 25 per cent was restored and in 1897 it was raised to 45 per cent. However, the increase in the value of the domestic products under this protection was only about $10,000,000 for the 10-year period 1889 to 1899, while in the previous 10-year period the increase had been nearly $20,000,000. The growth of the phonograph industry has taken place since the year 1890, and the player-piano industry has developed mainly since 1895. The value of products of the entire industry in 1904 clearly indicates this development, since in the 5-year period from 1899 to 1904 there was an increase from $47,000,000 to $80,000,000, and this total jumped to $105,000,000 for the 10-year period ending in 1909. The yearly importation remained practically constant, although the percentage decreased to about 2 per cent of the value of domestic products. The tariff rate remained at 45 per cent from 1897 until 1913, when it was reduced to 35 per cent. Domestic production and consumption. Production by States for recent census years will be found in the statistical tables. The value of the products of the combined industry was given above. The small importation of about $1,000,000 annually is made up mainly of instruments and materials which supplement the home product and do not furnish serious competition to it. The increase in the value of exports, amounting to over $9,000,000, in 1918 would seem to indicate that the domestic production is sufficient to meet the demand of the home market and furnish a surplus. Domestic exports."-Domestic exports of the combined industry increased from a total value of $5,870,951 in 1914 to $9,599,628 in 1918. This amount in 1918 was almost evenly divided between musical instruments and phonographs. The following table shows the distribution of exports for the two fiscal years: The destination of exports has changed noticeably in the past few years, probably due to the war. England and European countries have taken decreasing amounts; in some cases exports to European countries have entirely ceased. On the other hand exports to Cuba, Mexico, and the Central and South American countries have greatly increased. Australia was the leading purchaser of the exports of pianos in 1918, taking very nearly one-half of the total. Canada has been and remains one of the principal buyers of all classes of instruments exported from the United States, and took approximately one-half of the exports of phonographs and materials in 1918. The American piano and player-piano are quite generally considered to be superior instruments in all markets, especially the highest 2 "Foreign Trade in Musical Instruments," Special Consular Reports, No. 55, 1912, |