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THE CHICAGO SHORT CUT:
Creative Merchandising of Sound Through Bribery
Part 2**

 Copyright © Fritz Reuter and Sons, Inc. 1987, 1996-2000, 2004, 2008.  All rights reserved
By Fritz Reuter, Jr.

Dedicated to my colleague and faithful source of inspiration,
Jacques François
Cofounder of the American Federation of Violin and Bow Makers.

True ethical responsibility requires an absolute commitment to honorable behavior and practices, even at the sacrifice of personal advantage. -- from the American Federation of Violin and Bow Makers, Inc.
Code of Ethics

· CONCLUDING OBSERVATIONS
*51. Has the violin business become a criminal racket and a snare? To those who know the business from many angles, the question's answer will be resoundingly affirmative... Yes!!

*52. But how is it possible for an honorable craft to have come so largely under the influence of racketeers? What keeps many well-intentioned people from seeing flim flam and puffery for what they are? It is, after all, feats of illusion performed by master magicians -- rather than physical intimidation -- which sustain the MAFFIA's dishonorable operations. We must, though, ask why so many are willing to mistake the illusionists' feats for facts. And the most credible explanation seems to be found in the deeply entrenched hoax -- the so-called violin "mystery" and/or "secret" -- which appears again and again in the various fables which make up Violin Mythology. Misleading as they are, these fictions are powerfully influential -- hence the need for the series of studies featured in past issues of the FOCUS REPORT:

RIN:024 "Has the Violin Business Become a Criminal Racket and a Snare?"
RIN:041 "The E.N.D. Process: The Final Solution, Chicago Style"
RIN:026 "Finally Found: The 'Secret' of Stradivarius"
RIN:048 "Violin Mythology: A Psychoanalytical Goldmine"
RIN:023 "Kenneth Warren & Son, Ltd.: An Example of Pretense and Pretension."

*53. Yet, in light of the facts now available to our readers and the wider public, the prospective violin buyer may feel new uncertainties. He may find himself in the same predicament as did many Japanese musicians -- once the "Kanda" scandal had broken into the news. He may have lost all confidence in the sellers of musical instruments, and in those persons who claim to give authoritative advice on instrumental purchases. "Is there anyone I can seriously trust?"

*54. It is reasonable -- in particular, given the emphasis which this article has placed on commercial bribery as the dominant force in so-called Creative Merchandising -- for many people to be asking this question. However, some additional observations regarding fleecing procedures and the factual knowledge that protects one against them may, quite possibly, help FOCUS REPORT readers develop an enlightened and racket-free approach to the evaluation of stringed instruments.

*55. Stringed instruments -- violins, violas, cellos, basses -- are of four different types. The distinctions among type are a consequence of differences in the mode of manufacture. Any given instrument may be classified as trade-name, master-shop, amateur-made, or master-made. It is understood, of course, that instruments in the various categories will sometimes have overlapping qualities. But our greatest attention must fall upon master-made violins, since these are the instruments which are both most deeply desired and most frequently misrepresented. Such violins' appraisal is especially sure to involve the separate assessment of as many as four basic value components:

-the tone
-the utilitarian, or practical, value
-the artistic value
-the collector's value.

*56. As for the beauty of tone, its assessment is totally subjective. Moreover, it is never a component of the sales price. In judging whether or not an instrument is fairly priced, therefore, it is the other aspects -- utilitarian, artistic, and collector's value -- which demand emphasis. It is worth noting that these are the very aspects of value which lie outside of a violin teacher's competence and expertise, even that of the most notable performer and pedagogue. Even so, this does not mean that the potential buyer should turn to a dealer for advice. He must be careful to understand just what kind of dealer he is turning to... and what difference it makes.
*57. In contrast to violinmaker-dealers, most musician-dealers are simply merchandisers -- nothing more. Whatever the image foisted upon the larger world, musician-dealers have limited knowledge and competence when it comes to appraising the value, authenticity, and physical condition of an instrument. Their expertise is entrepreneurial. "Creative Merchandising," carried out with the covert assistance of third parties (matchmakers, especially), is their only successful means of selling violins.
*58. All this makes a big difference in the price of a violin, and the way that price is set. Among musician-dealers, sales prices are not related to the free market forces of supply and demand (themselves responsive to the informed judgment of violin collectors and connoisseurs) but are totally arbitrary. What does it mean to say that musician-dealer sales prices are arbitrary? It means that, while such dealers' prices are unrelated to the judgment of experts, the same prices are highly manipulated -- directly related to the buyer-victim's ability to pay. How, one asks, can the musician-dealer assess his victim's ability? Then he remembers the matchmaker. In a way, it turns out that the matchmaker is an expert appraiser -- not of instruments, obviously, but of persons' finances. Through the intimate relationship he cultivates with students and their families, he positions himself to carefully assess the limits upon the potential buyer's financial ability, as well as to artfully urge the same individual toward his ultimate fleecing and swindling.
*59. Granted, nothing said here is likely to get the MAFFIA to change its ways. But FOCUS REPORT readers have the knowledge required to become more sophisticated buyers, buyers far less likely to be victimized by musician-dealers' rackets, snares, and swindles. Here, as elsewhere, knowledge is power.

A BRIEF DESCRIPTIVE GLOSSARY
*60. A number of euphemisms, common to the violin business and to other scam operations, are easily called to mind: Commissions, Finder Fees, Entitlements, Offers, Contributions, Rewards, Inducement(s), Favors, Gifts, etc. These words veil the bare truth of what is really going on, namely the cunning gutter practice which is usually designated by one of a limited number of terms: Bribe, Kickback, Payoff, Graft, Fix, Payola. The reality is nothing less than the fleecing and swindling of the gullible.

*61. Because of this, I provide a brief lexicon of the critical generic terms, defining them in a way which reflects their actual use by the two parties in the musician-dealer/matchmaker-fiddler relationship.

*62. BRIBE: A price, reward, or favor -- most often consisting of money and/or property -- bestowed or promised by a seller, to the end that the recipient will permit his judgment and conduct to be corrupted. Persons in positions of trust are favored as recipients, since their positions make them promising match makers.

*63. COLLUSION: A secret combination, conspiracy, or concert of action between two or more persons for (a) fraudulent or deceitful purpose(s).

*64. COMMERCIAL BRIBERY: This type of bribery is related to unfair trade practices. It causes an advantage which one competitor secures over his fellow competitor(s) by his secret and corrupt dealings with employees and/or agents of prospective purchasers -- i.e., with matchmakers.

*65. DECEIT: A fraudulent and deceptive misrepresentation, artifice, or device, used by one or more persons to deceive and trick another (this individual being ignorant of the true facts) -- all to the prejudice and damage of the party imposed upon.

*66. FIX: Used both as a noun and a verb, though the verbal (active) meaning is primary. Thus, "to fix": to arrange or influence an outcome, decision, choice, etc., by collusion or a bribe (q.v.).

*67. FRAUD: An intentional perversion of truth for the purpose of inducing another, in reliance upon it either to part with some valuable thing (e.g., money) which belongs to him, or to surrender a legal right. A misrepresentation of a matter of fact -- said misrepresentation being made by false or misleading allegations, or by concealment (effected through words, actions, or both) of that which should have been disclosed -- which deceives and is intended to deceive another, so that he shall act upon it to his legal injury.

*68. GRAFT: The unscrupulous use of one's position to derive profit or advantages: extortion. Also, any money or advantage gained or yielded under such circumstances.

*69. KICKBACK: A seller's secret payment ("under the table") of part of a purchase price -- said amount being paid, not to the buyer, but to the individual who directed or influenced the purchaser to buy from this particular seller.

*70. MISREPRESENTATION: Any manifestation, whether by words or actions, made by one person to another, which -- under the circumstances -- amounts to an assertion not in accordance with facts. An untrue statement of fact. An incorrect or false representation (upon which another may be expected, or induced, to rely)

*71. PAYOLA: A secret payment for a favor or favors, as for publicizing a commercial product.

 Copyright © Fritz Reuter and Sons, Inc. 1987, 1996-2000 All rights reserved

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