Distribution: A Taxing Enterprise

George Bundy in Paris, 1929
In 1918, George Bundy negotiated the exclusive distribution rights to sell Selmer wind instruments in the United States.  At the time, most of the wind instruments and violins used in America were made by manufacturers in Germany and France.  Bundy is shown here with the Selmer brothers, Henri (right) and Alexandre (left).

President Woodrow Wilson cut import tariffs from 40% to 10% after his election in 1912.  U.S. distributors who imported musical instruments from Europe made huge profits.  Their rapid rise in sales caught the attention of the U.S. Tariff Commission, who undertook an early government sting operation.  The result was that eight leading importers were collectively fined $90,000 in unpaid tariffs.

World War I affected wholesalers in two ways: musical instruments were taxed at 8% to help the war effort, and the loss of German suppliers led some distributors to import violins from Japan for the first time.

As many piano retailers became full-line merchants, the number of distributors grew to meet the increasing demand for musical instruments and accessories.  Between 1920 and 1925, their ranks swelled from twenty to more than a hundred import and distribution houses.

Some leading distributors of the time were:

• Buegeleisen & Jacobson
• Carl Fischer Musical Instruments Co., Inc.
• C. Bruno & Son, Inc.
• Gretsch Musical Merchandise
• Grossman Music Co.
• Peerless Imports
• Progressive Musical Instrument Corporation