Chapter V: The Guarantors and the Guarantee Fund

There are a few satisfactory ways of financing an orchestra, but there are a number of unsatisfactory ways, and maintaining or trying to maintain a Guarantee Fund is one of them. The devotion of the guarantors of the Philadelphia Orchestra through sixteen years of financial embarrassment is a part of the story of which Philadelphia may be proud. A group of one hundred and twenty men and women[21] constituted the first guarantors in 1900-1901.

[21] See Appendix D.

At the close of the season this notice was issued:

“THE PHILADELPHIA ORCHESTRA
“FRITZ SCHEEL, _Conductor_
“CALL FOR THE FIRST GUARANTEE FUND
“Philadelphia, June 15th, 1901

“Dear Sir:
“The accounts of the Treasurer of the Philadelphia
Orchestra Association, for the season just closed,
shows a total expenditure for all purposes of
$27,729.33, and total receipts from all sources of
$14,429.85, leaving a deficit of $13,299.48, to be met
by the Guarantee Fund.

“A copy of the report of the Auditors is hereto
appended.

“The Guarantors are to be congratulated upon the
success of this experimental season—made possible only
by their generous support. The musical success of the
concerts has surpassed the most sanguine anticipation,
but the most important and far-reaching result of the
undertaking has been the formation of the recently
organized Philadelphia Orchestra Association, with
its well-assured plans for weekly concerts and public
rehearsals during the winter seasons of the next three
years.

“The total Guarantee Fund amounts to $15,720.00, upon
which a call of 84.61 per cent is necessary to meet the
above deficit. Will you, therefore, please mail to Mr.
John H. Ingham, Assistant Treasurer, No. 505 Chestnut
Street, your check drawn to his order, for $—— being
84.61 per cent of your subscription of $——

“Very truly yours,
“JOHN H. INGHAM
OLIVER B. JUDSON
EDWARD I. KEFFER
OSCAR A. KNIPE
EDWARD G. MCCOLLIN
HENRY WHELEN, JR.
“_Executive Committee_”

“REPORT OF THE AUDITORS

“Philadelphia, 12th June, 1901.
“The undersigned, being two of the Guarantors for the first series
of Concerts of the Philadelphia Orchestra, and having been requested
to act as Auditors, have examined the accounts of the Treasurer and
the vouchers for disbursements.

“We find same in order and correct, and are satisfied that the
business management of the Orchestra has been efficient, and that
the expenditures were proper and necessary.

“The accounts show receipts from sales of tickets and incidentals
amounting to $14,429.85, and payments as per receipted vouchers
amounting to $27,729.33, leaving a deficit of $13,299.48.

“JOHN H. CONVERSE
“C. HARTMAN KUHN
“_Auditors_”

When the business of this season was settled, a new fund had to be procured; forty-three Philadelphians were found who were willing to risk a three-year pledge for an untried experiment, and a number more for shorter terms.

When this three-year guarantee expired the Association was facing a crisis and was on the point of disbanding the orchestra. Then the newly formed Women’s Committee was appealed to with the information that an addition of ten thousand dollars to the Guarantee Fund, secured within two weeks, was the only hope of saving the orchestra. An account of this first effort by the women has been given in a previous chapter. They succeeded in securing a number of new guarantors for one, two and three-year terms, and completed the amount within the required time.

The story of the next sixteen years is one of constant begging on the part of everybody connected with this institution. Many methods were used to explain the financial condition. The Minutes, the programme book, and the numerous letters issued bear witness to this fact. Many were the meetings called “to consider the financial status of the Association.”

“Dear Sir or Madam:
“At the end of the second season the Directors of the
Philadelphia Orchestra find that the deficit will
practically be the same as at the end of the first
year, viz: $68,000 or $70,000. The expense of managing
the organization has been reduced as much as possible,
and if the organization is to be maintained on the same
standard of excellence, the management feel that a
large guarantee fund is necessary.

“It is proposed to increase the guarantee fund from
$40,000 to $100,000, and by so doing we would not have
to call on the entire guarantee fund, possibly 50 per
cent of such fund would be necessary. The prices of
admission for boxes and seats in the various parts of
the house are as low as it is possible to make them, so
that the concerts are within easy reach of students of
music.

“The Orchestra during the past year has completed a
season of 20 weeks, having given 71 concerts in all,
43 in Philadelphia and 28 outside of the City. In
addition to these performances the orchestra or a large
number of them have appeared at concerts of the Orpheus
Club, the Choral Society, the Temple Chorus and the
Maennerchor under their several conductors.”

* * * * *

“The management have done their utmost to make the
orchestra a success, being aided in their efforts by
the excellent conductorship of Herr Scheel. Private
individuals and those interested in music have
generously contributed, but it is to the public that we
now look. By an increased season sale the receipts will
be greatly increased, and consequently there will be
more money to defray the expenses.

“If you have not as yet become a guarantor of the
Philadelphia Orchestra, will you not aid us by doing so
and communicate with Mr. John Ingham, Secretary, 505
Chestnut Street, who will furnish you blanks for that
purpose. The guarantee fund covers a period of three
years only.

“If the orchestra is to be continued, and it would be a
disgrace to Philadelphia to allow a fine organization
of its kind to slip away from us, two things are
necessary: a larger guarantee fund and the support of
the public by an increased season sale. The outlook for
the latter, we are glad to say, is most encouraging for
next season.”

* * * * *

“Of course, it must be understood, that unless a
sufficient guarantee fund be raised, they would
not feel justified in continuing the Orchestra
indefinitely.”

* * * * *

“Hoping you will, if you have not already done so, aid
us in furthering and maintaining this orchestra, we
remain
Yours truly,
“GEORGE BURNHAM, JR. A. J. CASSATT
JOHN H. CONVERSE ECKLEY B. COXE, JR.
WM. L. ELKINS MISS MARY K. GIBSON
JOHN H. INGHAM OLIVER B. JUDSON
EDWARD I. KEFFER C. HARTMAN KUHN
EDWARD G. MCCOLLIN THOMAS MCKEAN
CLEMENT B. NEWBOLD JAMES W. PAUL, JR.
MRS. F. H. ROSENGARTEN RICHARD ROSSMAESSLER
EDGAR SCOTT SIMON A. STERN
MISS ANNE THOMSON A. VAN RENSSELAER
HENRY WHELEN, JR. P. A. B. WIDENER
CLEMENT A. GRISCOM”

“To the People of Philadelphia: 1903

“The management of the Philadelphia Orchestra Association, at the end of the third season of concerts, feel that they may now claim that they have fulfilled their original promise to supply the community with an orchestra of the first class. There are but three other orchestras of this rank in the country, those of Boston, Chicago and Pittsburg.

“A great orchestra is as much a civic institution as a great library or art museum. It is the backbone of the whole musical organism. No large city can afford to be without one.”

* * * * *

“The artistic success of the past season is unquestioned, the work of the orchestra under Mr. Scheel, a leader admittedly second to none in the country, received flattering comment wherever it has been heard, both at home and in other cities, New York especially envying us the possession of an orchestra of the first rank.”

* * * * *

“The deficit is practically the same as that of the preceding season, viz: sixty-eight to seventy thousand dollars. While this is a large sum, it compares favorably with the deficits of the three other large orchestras of the country during their initial seasons, and is not a cause for discouragement.”

* * * * *

“An orchestra of the first class, however, can never be entirely self-supporting, and must be dependent upon the guarantees or contributions of those who take pride in their city and look upon its work as necessary to the education of the community.”

* * * * *

“Up to the present time the amount of the deficit over and above the guarantee fund has been paid by a few (three or four) generous and public-spirited members of the Association. It is not fair, however, that the burden of such an undertaking should be borne by a few when the whole community is benefited, and the Directors appeal to the public generally to aid in this work.

“In a city of the size, wealth and culture of Philadelphia, it does not seem unreasonable to hope that a sufficient number of people can be found to assist in retaining the orchestra and increasing its usefulness. One hundred additional subscriptions of a Thousand or Five Hundred Dollars each, per annum, for three years, would go very far toward enabling the management to establish the orchestra on a permanent paying basis, but without such support from the public, the Directors do not feel that they would be justified in continuing the orchestra indefinitely.”

* * * * *

“As it is impossible to ascertain and approach personally all who are interested in the cause, those who wish to subscribe to the guarantee fund are requested to write to the Secretary, Mr. John H. Ingham, 505 Chestnut Street, for blanks. The intention is to raise a fund for three years.

“On the success of this appeal will depend the future of the orchestra.”

(_Signed as before._)
“PHILADELPHIA ORCHESTRA ASSOCIATION

“Philadelphia, April 15, 1905.
“TO THE GUARANTORS OF THE PHILADELPHIA ORCHESTRA ASSOCIATION:

“In closing the Fifth Season of the Philadelphia Orchestra, the
Executive Committee think it is proper to report the result of the
season to the Guarantors and to the members of the Association.”

* * * * *

“The total cost this season, including salaries
of musicians and conductor, office expenses,
rental of Academy of Music, etc.,
amounted to $99,746.28

“The total receipts from all sources were 45,877.57
----------
Showing a DEFICIT of 53,868.71

“The Guarantee Fund is 48,627.50
----------
Leaving a DEFICIT of $ 5,241.21[22]

[22] See Page 69.

which we have every reason to believe will be provided
for in the near future.

“The loss in season 1903-04 amounted to $58,530.23, so
that we can show a distinct gain this year of $4661.52.
The gain, however, was really much greater, inasmuch
as our fixed charges were increased nearly $5000 due
to increase in salary of conductor, increased rent of
Academy of Music and increased charges for advertising, etc.”

* * * * *

“Owing to the unflagging energy and enthusiasm of our
Women’s Committee, not only has our Guarantee Fund been
substantially increased, but the season’s sale of boxes
and seats, etc., was larger than for any previous year.”

* * * * *

“All this is very gratifying, but the fact remains that
an efficiently maintained orchestra will always cost in
the neighborhood of $100,000, with the possibilities of
only $60,000 _maximum_ receipts secured from full
houses at every performance.”

* * * * *

“There is no question whatever that the Orchestra is
gaining in prestige and popularity among the people of
this city, and it is the earnest hope of the Committee
that the work should spread and that the Orchestra
should be put on a permanent basis.

“It has been decided to re-engage Mr. Scheel, and
contracts have been authorized with the members of
the Orchestra, so that as far as possible the present
personnel may be retained.

“It is the hope of the Committee that you will continue
to favor the organization with your support as before,
and that you will renew your subscription to the
Guarantee Fund.

“By Order of the _Executive Committee_
“(Signed) A. VAN RENSSELAER, _President_”

PROGRAMME BOOK

“THE PHILADELPHIA ORCHESTRA ASSOCIATION
OWES MUCH OF ITS SUCCESS TO THE DEVOTED
LABORS OF THE FOLLOWING
WOMEN’S COMMITTEES

ANY MEMBER OF WHICH WILL BE GLAD TO RECEIVE
YOUR SUBSCRIPTION OF TWENTY-FIVE
DOLLARS, OR MORE, TO THE
GUARANTEE FUND
OF THE
PHILADELPHIA ORCHESTRA

“WHAT THE PHILADELPHIA ORCHESTRA IS DOING
FOR PHILADELPHIA”

“The breadth of a city’s culture is measured by its
point of view toward the arts that interpret life.
Music is one of them—with Painting and Literature. It
is the function of THE PHILADELPHIA ORCHESTRA
to carry forward the musical tradition that has been
Philadelphia’s for five generations—

“And more, to keep its musical consciousness alive
and virile, by presenting the noblest works of the
composers of today—composers who are expressing life
in the terms of the present day.”

* * * * *

“It has warm friends, enthusiastic audiences, the
appreciation of musicians. Its influence is far more
than local.

“But more than this—it needs financial support.

“It is not a private enterprise for private gain, but a
public organization for public service.

“In the nature of things such an institution cannot be
self-supporting. Its box office receipts are fixed by
the customary scale of prices—while its expenses are
the creatures of time and circumstance.

“The resulting deficit is made up each season by The
Philadelphia Orchestra Association, whose members
guarantee sums ranging from $25 to $5000 each,
annually, for this purpose.

“The Association is thus the instrument through which
any one may help to perform this public service. It
needs more members—of whom you are invited to be one.

“THE INFLUENCE OF YOUR NAME AND YOUR MONEY ARE NEEDED.”

PROGRAMME BOOK
“A CALL TO PATRIOTISM

“THE CALL TO CIVIC PRIDE IS IN THE AIR. ‘Learn
to know Philadelphia and work for her,’ is heard on
every hand, and our people are urged to form and join
‘Patriotic Societies,’ all of which is good, and well
worth-while.

“BUT DO YOU KNOW that for several years a
zealous Patriotic Society—one that evinces the truest
Patriotism, the Patriotism of the Pocket-book and Bank
Account—has been quietly at work doing all it could in
its own way for the good name of Philadelphia and for
the enjoyment and welfare of her citizens?

“THE MEMBERS OF THIS SOCIETY have demonstrated
the soundness of their Patriotism, the reality of their
Civic Pride, and their zeal for the people’s good,
without boasting and without complaint, by contributing
from their private means, in the past nine years,
approximately $468,000 to maintain and operate THE
PHILADELPHIA ORCHESTRA, an institution of which
every good Philadelphian has reason to be proud.

“THE MEMBERSHIP OF THIS SOCIETY of liberal and
public-spirited citizens known as THE PHILADELPHIA
ORCHESTRA ASSOCIATION, numbered 43 in the season
of 1901-02. Last season there were 263 members.”

* * * * *

“WILL YOU NOT SHOW YOUR PATRIOTISM, your Civic
Pride, your desire ‘to know and work for Philadelphia,’
by joining the honorable roll of this Association? A
subscription of Twenty-five Dollars, or more, toward
the Guarantee Fund, will make you a member.

“YOUR NAME AND MONEY ARE NEEDED!
“THEY ARE NEEDED NOW!

“Write today to the Manager for a Subscription Blank.”

One of the difficulties was the attitude of business men who felt that after a few years the orchestra should be making a return on the investment, or at least be self-supporting. Their opinion was that an institution which was a constant expense did not deserve the support of the community. Fortunately for music, the people of Philadelphia now understand that an orchestra never can be anything but a public charge.

Beginning with 1904 the number of guarantors ranged from two hundred and fifty to three hundred and sixty per season. The Guarantee Fund ranged from forty-five to fifty thousand dollars. During some seasons there was that most intolerable of all things, an extra deficit: during a few, a certain per cent of the fund only was called upon.

The discouraging part of the Guarantee Fund method of financing an orchestra lay in the fact that the work was never-ending. A certain number of guarantees expired each season and the guarantors had to be persuaded by all the arts of man and woman to renew their pledges. The fact that their money was to be immediately spent, militated, in the minds of many people, against the Fund. It is so much pleasanter to think of one’s gift safely ensconced in a permanent fund yielding an income year after year for a favorite cause.

The Women’s Committees worked hard for the Fund. Besides procuring new guarantees each year for twelve years, amounting to thousands of dollars, they obtained renewals of old guarantees or made good the loss by new ones. In 1905, they defrayed the extra deficit of $5300.00; no doubt taxing everybody’s generosity and patience to the utmost.

Much of the financial burden in the first years was borne by a few men and women, who time after time put their hands deep into their pockets. Among these may be named Mr. Alexander Van Rensselaer, the president; Mr. Thomas McKean, Jr., for some years vice-president; Miss Anne Thomson and Miss Mary K. Gibson, directors. The treasurer, Mr. Henry Whelen, Jr., was always optimistic and advanced money constantly. What the result would have been if Mr. Whelen had not done this is problematical. His untimely death in 1907 robbed the orchestra of a devoted friend.

Mr. Whelen was succeeded as treasurer by Mr. Arthur E. Newbold, of Drexel and Company, who arranged loans and advanced money and took endless trouble for the Association. The same can be said of Mr. Robert K. Cassatt, the present treasurer, who attends to many details of business.

From 1905-06 until 1910-11, Mr. Horace Churchman was the Controller of the finances, which he administered with ability and much to the satisfaction of the Board.

A glance at the figures is all that is needed to learn the story of those years so discouraging from a business point of view.

Résumé of the Guarantee Fund, 1900-01-1915-16

Number of Amount Extra
Season Concerts Total Guarantors Collected Deficit
1900-01 6 $15,720 120 $13,299 (84%) $40,000
1901-02 14 pairs 32,000 43 32,000 30,000
1902-03 14 ” 38,000 113 38,000 16,000
1903-04 14 ” 42,000 137 42,000 5,300
1904-05 15 ” 48,000 259 48,000
1905-06 18 ” 50,000 315 47,000 (95%)
1906-07 20 ” 46,840 281 41,900 (90%)
1907-08 22 ” 42,285 273 40,100 (95%)
1908-09 22 ” 45,125 352 42,800 (95%)
1909-10 22 44,800 359 44,800
1910-11 25 42,400 311 42,400
1911-12 25 42,100 309 42,100
1912-13 25 43,200 314 43,200
1913-14 25 46,000 335 46,000
1914-15 25 45,300 323 45,300
1915-16 25 49,100 310 49,100
--------
Total $618,699

During these distressing days Scheel was asked to dine at the Rittenhouse Club to meet some prominent men of affairs, at a time when desperate efforts were being made to procure guarantors. The hour arrived, but no Scheel and it was learned that he had not gone home to dress. His friends started out to find him, and he was discovered teaching the second bassoon player to play a syncopated passage in a Tschaikowsky symphony. The dinner was entirely forgotten in the absorption of the lesson, but he rushed home to dress and arrived only thirty minutes late. The result of the dinner, however, was an addition of several thousand dollars to the Guarantee Fund.

The total number of guarantors who defrayed the annual deficit during sixteen years was about seven hundred and fifty, and to them Philadelphia music lovers are deeply in debt. Many sighs of relief were heard when this unstable way of financing an orchestra was ended by the offer of the “Unknown Donor,” which made possible a more permanent method.