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International Scandal of Systemic Violin Racketeering
In the opinion of Mr. Graham Wells (founder of Sotheby’s auction’s musical instrument department), on the International Violin Business: "The violin trade has always been corrupt. Compared with the rest of the art and collectors' market, and even with other instruments, only violins, because of their rarity, history and immense value, attract this level of corruption, with auction houses and the trade - and, of course, musicians who cannot afford these instruments - all suffering as a result." (The Guardian)
Another expert on the violin business, Professor Brian Harvey, co-author of the l997 book Violin Fraud, demonstrates the existence of a “cartel” [Violin Maffia] composed of a few, all-powerful dealers. “They all operate hand in glove, share in the arrangements and regard themselves as experts whose word cannot be challenged. They often act as auction house advisers and buy at sales, so it is time these facts were exposed.” Prominent members of the International Violin Maffia have been discovered lately as engaging in the Money Laundering Business as well. Switzerland is still a major haven but also the Marshall Island, in the South Pacific. Don’t forget the Caribbean Islands, the Bahamas, Panama and numerous other places, amicable to money laundering as well. Dietmar Machold has been investigated, so have been British Gents and prominent American violin dealers. Truly, a nice assembly of criminal characters. This brings me to a book I recently read by Jon Huer, a very readably publication and with profound insight of the Art Business of today, titled “The Great Art Hoax.” It deals with essays in the “Comedy and Insanity of Collectible Art.” The similarities between the Art and the Violin business are quite apparent, with one great difference: The expert purchaser of art is induced to buy according to their personal and subjective taste, as to what is beautiful and affordable. Not so with the purchaser of a stringed instrument, may it be a violin, viola, cello or bass. “The Third Man,” written by novelist Graham Greene, came to mind. It portrays what is known in the corrupt violin world as the unscrupulous string teacher. You maybe wonder, ‘How is this the case?’ Let me ask this question: If you buy a used car, do you look for the driving instructor’s opinion, or would an auto mechanic’s knowledge be of greater help? Not unlike the purchase of a string instrument. The most professional advice regarding the physical condition or authenticity would come from a master violin maker, with many years of expertise, not even from a well-meaning string teacher. You, as a advanced player, have your own personal taste, as to sound. Let me enlighten the generally innocent and unfamiliar public, which is being taken advantage off, with my 63 years of experience in this business as maker, dealer and fiduciary appraiser of stringed instruments. To relate to the history of this practice of corruption in the violin business, I like to quote the late Hans Weisshaar, prominent founder of the American Federation of Violin and Bow Makers, and former president of the International Society of Violin and Bow Makers [Entente], in a letter which I’ve published on our website [RIN:068 Letter to Hans Weissaar par.6.]: March 21, 1984 Dear Fritz, “. . . Your second question regarding the payment of commissions, finder's fees [kick-backs] or any other remuneration in money or kind is much easier to settle. If you are in business and want to sell instruments, you will find it very difficult to be successful without doing it. [Paying up to 50% of the sales price] It has become an established and accustomed practice that has become a necessity for survival for many. And regardless of the protestations of many, this practice [of paying kick-backs] will survive and be part of our life, the same as prostitution in all its many forms has been part of our lives since time immemorial. So take it from there as a strictly philosophical observation on my part; it is an existing condition and not necessarily my idea of what is better or more ethical.” A more recent article appeared in the STRAD magazine, [April 2011 issue, page 25] dealing with the same highly unethical, yes, even criminal and systemic practice of secretly paying kickbacks to a third party , by Ariane Todes, in her article Failure to declare. As Ariane Todes highlights, most string teachers, for a price, have become the middleman in selling string instruments and bows, even though very few, if any, are able to assess the monetary value of a given instrument or bow. When purchasing a violin, as well as other string instruments, it is a classical BLIND PURCHASE. Since monetary value is basically determined by authenticity and physical condition, the string teacher can only assess the intrinsic and subjective beauty of sound, which is in the ear of the listener. Taste varies! Thankfully, not everyone has the same taste! When kickbacks are added to the equation, the string teacher - by his/her demonstrating their superior playing ability --- can modulate the sound of any instrument. They can sway any listener the way they prefer by making a particular instrument sound good or bad on purpose, mostly based -and dependent on -the amount of kickback the dealer is offering. (See real-life example of teacher profits) Let me asked you a question: Do you know the cash value of your stringed instrument? Therefore, low priced instruments bought in a traditional music store would have very little kickback possibilities at 10% to 20% markup of the sales price. The real money is with old and antique instruments and bows. With antique instruments and bows, the teacher – not qualified to assess the monetary value based on authenticity and physical condition --- is in the position to negotiate the kickback amount. The dealer who pays the most gets the sale! This is one of the reasons why string teachers prefer their students to purchase older instruments; -there is more money to be had from the sale. The amount of markups can be up to 50% of the sales price and is being paid to those string teachers who know the racket. Only collectors are in the market for premium antique instruments -most of them are wealthy connoisseurs enjoying their hobby. ANTONIUS STRADIVARI made and sold NEW instruments –which follows that students and players would find greater value in an instrument made by a modern day master violin maker. All of this reminds me of a statement made by the well known string teacher, Professor Jamie Laredo of the Curtis Institute: "A great player can make a cigar box sound great." Also, it again calls to mind an undisputed principle and physical law --- that of entropy, --- “The inevitable and steady deterioration of a system or society." Also, witness the testimony of Professor Colin Gough: “Science has not provided any convincing evidence for the existence or otherwise of any measurable property that would set the Cremonese instruments apart from the finest violins made by skilled craftsman today". Indeed, some leading soloists do occasionally play on modern instruments. However, the really top soloists --- and, not surprisingly, violin dealers who have vested interest in maintaining the Cremonese legend of intrinsic superiority --- remain utterly unconvinced.” Excerpts from Professor Colin Gough's "Science and the Stradivarius," April 2000. Colin Gough is at the School of Physics and Astronomy, University of Birmingham, Edgbaston, Birmingham B15 2TT, UK The kickbacks have become systemic within the violin business as seen by Hans Weisshaar’s comments “accustomed practice that has become a necessity for survival” (see quote above). With other instruments like trumpets, clarinets, trombones, etc., one needs the latest ‘top of the line’ creations of instrumental craftsmanship available today. Why not with string instruments? The answer is greed. When decisions go contrary to scientific evidence –just follow the money (i.e. kickbacks). |
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These Individuals are mostly members of string faculties and are primarily connected, in some way, with Schools of Music at various Universities, throughout the world. They may be Julliard, Ithaca, Eastman, Manhattan, Roosevelt, DePaul, Northern Illinois, Northwestern, Southern Illinois, University of Illinois, Ball State, DePauw, Indiana State, Indiana, Lawrence, Wisconsin, Music Institute of Chicago, etc. Others are listed as dealers in Stringed Instruments throughout the world. Also, many are also members of the American String Teachers Association (ASTA), Violin Society of America, American Federation of Violin and Bow Makers, International Society of Violin and Bow Makers, (Entente International). |
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