The guitar of the 1890s was either used primarily for vocal accompaniment or as a continuo instrument in mandolin and banjo orchestras of the time. Mandolins had position markers at the 10th fret. Basically, markers at the 10th fret, versus the ninth (found on a few guitars and banjos before the 1880s), was a strategy employed by guitar makers who intended to sell their instruments into the immensely popular mandolin orchestras at the time. Very likely they would also have had three dots at the fifth, seventh, and 10th frets. Probably not too many survived, but likely they were small acoustics that used with gut strings, and glued-on bridges. Very little information is known about the earliest Harmony-made guitars. In 1892, Schultz left Lyon & Healy and, with four employees, started Harmony in a loft of the Edison Building located at Washington and Market Streets in Chicago, later the site of the Civic Opera House. Knapp was bought out by a large instrument manufacturing giant, Lyon & Healy, and Schultz became foreman of the drum operation.
Schultz, a mechanic, came to Chicago and got work at the Knapp Drum Company. Wilhelm Schultz, founder of Harmony on left with factory worker and manager
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