[Dixielandjazz] The Monkey Business of Music

[Steve Barbone]

CAVEAT - Not OKOM. But if you are a string player in search of a good
instrument,  . . .

Cheers,
Steve Barbone


Orchestra to Sell Off Instruments It Prized

NY TIMES - By DANIEL J. WAKIN - March 10, 2007

Four years ago the New Jersey Symphony Orchestra rested its musical and
financial future on a collection of 30 precious string instruments. In an
about-face, the orchestra now says its health depends on selling them.

Symphony officials said yesterday that they were hoping an investor would
buy the instruments ‹ including specimens by Stradivarius and Guarneri del
Gesù ‹ and lend them back to the players, an increasingly common practice,
at least among soloists. The money would go to retire debt and help improve
the struggling orchestra¹s financial picture, the officials said.

³We have to be responsible financially and have something that leads to
stability,² André Gremillet, the orchestra¹s recently arrived president and
chief executive, said yesterday. ³Our hope is that some investor will come
up and purchase these instruments and keep them in New Jersey, which is not
unheard of.²

But officials of the orchestra, which is based in Newark, acknowledged that
there was no guarantee buyers would agree to such an arrangement, and
several violin experts said the odds were long. ³I wouldn¹t put my money on
it,² said Geoffrey Fushi of Bein & Fushi, a Chicago-based violin dealer.

The planned sale, first reported by The Star-Ledger of Newark yesterday, was
the latest twist in a troubled, even embarrassing, episode for the
orchestra, one that has been closely followed by the classical music world.

The New Jersey Symphony bought the instruments in 2003, when officials
declared that the collection would raise the orchestra¹s profile and attract
subscribers, donors and top musicians.

The seller was Herbert Axelrod, a longtime orchestra supporter,
philanthropist and pet-care magnate who later went to prison on unrelated
tax-fraud charges. Amid the fanfare over the deal, the value of the
instruments was first put at around $50 million.

But the orchestra¹s appraisers estimated their worth from $15.3 million to
$26.4 million. The sale went through at $17 million in 2003, and the
fiddles, violas and cellos were named the Golden Age Collection. Questions
soon emerged, though, about their worth, and about Mr. Axelrod¹s dealings.

An internal New Jersey Symphony report later accused orchestra officials of
having deceived the board and the public about the instruments¹ worth;
having done a poor job of assessing that worth; and not having told board
members about rumors that Mr. Axelrod was under investigation for inflating
the value of other rare instruments he had previously donated. Orchestra
officials later said that he had essentially tricked them into buying the
instruments.

Still, the instruments drew praise among the players. Neeme Jarvi, the
orchestra¹s eminent music director, said the collection had helped to lure
him to the job. The orchestra hoped the instruments would add luster to an
ensemble caught in a geographical vise: the New York Philharmonic on one
side, the Philadelphia Orchestra on the other.

But as financial problems mounted, the orchestra trimmed its season and
dipped into its endowment to help cover the loans it had taken out to buy
the instruments. As recently as July, the orchestra¹s interim president
promised not to sell the instruments, even saying that they would be cited
in a new long-range fund-raising campaign.

But with the rare-instrument market hot at the moment, and with losses
continuing and debt mounting, the board decided the prudent thing to do was
sell the fiddles, Mr. Gremillet said. ³It¹s really important that people
perceive this for what it is: a long-term financial solution,² he said.

The orchestra still owes $12 million it borrowed to finance the purchase. It
lost $1.2 million last season and expects another loss this year, Mr.
Gremillet said. Accumulated debt outside the instrument loan stands at $4.5
million. 

On the bright side, ticket revenue is expected to rise 10 percent over last
year. Subscriptions are up as well.

The orchestra has asked an instrument expert, Stewart Pollens, to handle the
sale. Mr. Pollens was for many years a conservator of musical instruments at
the Metropolitan Museum of Art. He said he had played a peripheral role in
the original purchase.

Mr. Pollens declined to discuss the asking price, but said that even the
sale of a handful of the instruments could cover the original cost. The
orchestra could conceivably double its money, he said, adding that he had
been in touch with several potential buyers.

Mr. Gremillet said that the proceeds would go toward covering debt and
budget shortfalls and fortifying the endowment, which stands at a paltry $10
million on an annual budget 1 1Ž2 times that.

Kerry Keane, director of the musical instruments department at Christie¹s
auction house, said that the rare violin market was ³buoyant² and that
Christie¹s sales in the area were $8 million last year, triple those of
2003. But he also said that deals involving a large number of such
instruments at once were extremely rare.

In an interview, Mr. Jarvi acknowledged that the orchestra faced the
possibility that a buyer would not lend the instruments back, which he
called a sad thought.

³I don¹t think I¹m going to die if we lose these instruments,² he said. ³I¹m
going to make music.²

But their departure would mean a loss of prestige. ³That¹s bad, but life
dictates many things,² Mr. Jarvi said. ³Our new executive director is making
immediately a new direction.²

Mr. Jarvi said the instruments had made a psychological difference in the
orchestra. ³Musicians know in their hands is a Stradivarius,² he said.
³That¹s a very special feeling.²