Automatic Age

Issue: 1933 December

12
AUTOM ATIC AGE
The committee agreed to the wishes of
the Administration for a forty-hour week
and a minimum wage scale for experienced
workers o f forty cents an hour. The in­
dustry had previously voted for a forty-
four-hour week and a minimum wage of
thirty-five cents.
The committee compromised on the time
limit for paying inexperienced workers a
wage amounting to eighty per cent of the
minimum. The industry had asked for a
period of 120 days for beginners, while the
Administration believed sixty days was a
proper period. The compromise was reached
on ninety days.
The so-called “ merit clause” was stricken
from the code at the request o f the
Administration. Mr. Darling reported that
none of the recent codes have been per­
mitted to retain this clause.
The “ anti-piracy clause” was allowed to
remain in the code despite early objections
by the Administration to the effect that it
was not necessary. The manufacturers com­
mittee presented arguments to show why
such a clause was necessary for this par­
ticular industry. A change was made in
the clause, however, which now reads as
follows: “ The copying o f the design or
construction of a machine containing new
or novel features, or any material part
thereof by any competitor for their own
use prior to the end of the year following
that in which it originated shall constitute
unfair competition and be a violation of
this code.” This provides protection of
from 13 to 24 months to all manufacturers
who produce an original machine or fea­
ture.
The minimum wage for women workers
was changed to forty cents per hour, the
same as for male employees.
Mr. Donahue, who presented the code at
the hearing, was called upon to outline
further details of the public hearing. He
spoke o f the routine and how each detail
of the code was dealt with, and how the
committee had to be prepared to answer
each question. Decisions were made quickly
to speed the passage o f the code. He also
pointed out that the code when approved
will govern all manufacturers of coin­
operated machines whether they are mem­
bers of the National Association o f Coin
Machine Manufacturers or not.
.
Another change was made in the clause
prohibiting manufacturers from selling ma­
© International Arcade Museum
December, 1983
chines at less than cost unless they were
obsolete patterns or unless the manufac­
turer of the machines also sold merchan­
dise for the machines on which the profits
were derived.
A general discussion of changes made in
the code concluded the open meeting. Dur­
ing the meeting a call was received from
the hospital where Mr. Marshall Seeburg
is recovering from a serious automobile
accident. It is believed he will remain in
the hospital until the first of the year,
although he is recovering rapidly from the
injuries. Mr. Seeburg is vice-president of
the Board of Directors for the association.
G. M. J. A. Agrees on New
Credit System
By “ RO XY”
“ At our meeting Tuesday, November
28th, the members cf the C. M. J. A. took
up the question of bad accounts. It was
decided upon that each C. M. J. A. Jobber
was to make up his bad account list and
mail it to the C. M. J. A. secretary, who in
turn would make copies of them all and
mail them out to the C. M. J. A. Jobbers,
so as to keep them posted on all these bad
accounts.
“ We firmly believe that it will mean a
big savings to all our members to be kept
informed monthly on this matter. This
also goer, for non-members who wish to be
kept posted. Write our secretary for in­
formation.
“ Another discussion taken up by our
members was in reference to the manufac­
turers’ advance advertising on their new
machines. We all know that advertising
is the greatest medium that exists, but
there should be a legitimate date set on
advance advertising and the manufacturer
should on that date have his machines with
the jobber ready for sale. As it stands at
present, the manufacturer starts off adver­
tising in advance with no definite date set
on shipments. The operators continue ask­
ing about machines, th^ jobber keeps tell­
ing the operator ‘Manana’ which is
‘tomorrow’ to you, and when the new ma­
chine does arrive we jobbers are sold out
on conversation, and unless the machine
happens to be a ‘natural’ we find ourselves
in an awful mess trying to sell these ma­
chines.”
http://www.arcade-museum.com/
December, 1933
AUTOMATIC AGE
13
How Long Will
It Last?
By W ILLIAM BLATT
President of Supreme Vending Company
h e same question is being asked by
manufacturers, jobbers, and opera­
tors. What has happened to this in­
dustry? How long will this condition last?
Why have so many manufacturers, jobbers,
and operators, who started a few years ago,
either gone bankrupt or fallen away like
so many flies?
The answer is simple. Too many manu­
facturers have conducted their business on
a “ catch as catch can,” and “ grab as much
as you can” basis and tha„ is where the
trouble started and where it will have to
end to change the downward trend to an
upswing.
When a machine produced proves to be
a flop the manufacturer shows no qualms
in sticking every jobber in the country with
a few pieces, and, with the latter holding
the well known bag the manufacturer wipes
his hands clean with the statement that the
jobber has fallen down on the jcb, overlook­
ing entirely the fact that the load of junk
could be sold only by a feat of magic. That
wouldn't be so bad if the manufacturer
would play ball when the reverse condition
were true. Very often, when a winner
comes into the market, certain manufac­
turers, realizing that no matter what they
do the jobber will not or cannot stop sell­
ing this particular machine, start selling
every Tom, Dick, and Harry. Here we
have the disease which ht-s caused so many
deaths.
To add insult to injury somo manufac­
turers have recently demanded 25 per cent
deposit in advance before even showing
their machines and then, when legitimate
jobbers showed their good faith by com­
plying, went right ahead and sold large
operators direct at jobbers prices. Con­
vincing no one, they claimed these opera­
tors were jobbers. These operators, with
T
© International Arcade Museum
the advantage of paying $3.00 or $4.00 less
than the small operator, are able to flood
a town with machines and taka locations
away from their less fortunate competitors.
After keeping the machines out for a
month or two these gyp jobbers resell them
as slightly used, getting back their cost or
$1.00 less, demoralizing the market on new
games. With this to buck, the legitimate
jobber finds it practically impossible to sell
new stuff anymore.
Here is an actual instance of this vicious
cycle: A month or so ago, when Silver
Cups were very popular and Genco could
not ship them fast enough and the price
per machine was $27.50, two of these
phoney jobbers, who had each bought about
fifty pieces, were already selling used Sil­
ver Cups at |22.50. Immediately our sales
on Silver Cups dropped fifty per cent.
This has been the cause for many of the
failures we have seen. Small operators
unable to compete with their more power­
ful brethren who get machines at jobbers
prices, are squeezed out. Legitimate job­
bers, finding their outlet gradually nar­
rowed as -each operator fades out of the
picture, have to close up themselves. Short­
sighted manufacturers, who could not see
any further than their noses, confronted
with the diminished jobber sale, fold up
also and so it goes and will go until the
manufacturers decide to take a grip upon
themselves and play ball.
E d i t o r ’ s N o t e : — The writer, Mr. Blatt,
would like to receive comments from job­
bers and operators as to their reactions to
the conditions mentioned above. He prom­
ises to answer all questions raised and
should any of the letters contain informer
tion which will be beneficial to others, with
the permission of the render, he will in­
corporate them in his next article.
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