1938

  • Steinway & Sons builds and sells 2,588 pianos.
  • Steinway & Sons makes $1,578,754 in piano sales.
  • Steinway & Sons’ net loss is $356,174.
  • Paul Bilhuber and Frank H. Walsh (a draftsman and foreman at Astoria factory whose background includes working closely with Henry L. Ziegler in 1920s), persuade Steinway & Sons workers to switch from “Peter Cooper No. 11” all-natural hoof-and-hide derivative glue, traditionally used in pianomaking, with drying time of over 20 hours, to “Welwood” – the new fully synthetic, waterproof, rot-proof, bug-proof, and temperature-proof resin glue, with 4 hours drying time, after a high frequency electric charge is applied to it. After initial enthusiasm, Steinway & Sons workers and management quickly discover that not only the new glue sticks to everything, including workers’ own hands, but it’s also highly toxic, and triggers various allergic reactions. Steinway & Sons management then decides to tests various other resin glues, and eventually discovers the one less toxic. Unbeknownst to the workers and the management alike, this experience with resin glues will prove instrumental in helping Steinway & Sons to remain functional a few years later, during WWII. (See the corresponding 1942 entry.)
  • A retired FBI operative writes to his former agency, claiming that Steinway & Sons has brought German spies and Nazi sympathizers to the White House. J. Edgar Hoover personally assigns an undercover agent to investigate Steinway & Sons. The agent works hard on the case, but finds no evidence against the company.