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tained. However, if the number of
machines operated is small, a jobber
may better supply the operator. A few
small operators, may, however, pool
their purchases and possibly save
some expense.
Lloyd’s of London will insure a
gainst almost any hazard. However,
until recently the vending machine
operators have either found Lloyd’s
insurance too high or thought their
machines needed no insurance. Sev
eral American insurance houses issue
a blanket type policy that protects
the operator against the perils of
fire, theft of the machine, mutilation
by attempted theft and of tornado,
and windstorm damage. Under this
contract the operator fills out a certi
ficate based on the number of vending
machines he uses, and their original
or depreciated cost at the time the
certificate was filed. He must classify
his vending machines in accordance
with the Insurance Company’s de
mand, into:
1. Cigarette machines.
2. Merchandise machines.
3. Amusement machines.
4. Scale machines.
5. Slot or gambling machines.
New machines received during the
period are covered by additional
entries.
The manufacturer or jobber can
also insure his machines out on rental,
and this is being done over the coun
try to a large extent.
Insurance on the contents of ma
chines is increasingly difficult to se
cure, because of the impossibility of
estimating properly the petty losses
through theft and the inability of the
insurance companies to get a proper
check on the machines.
Rates Increasing
The rates of insurance on venders
during late years have been steadily
increasing, because of increasing los
ses through robbery. Unless the
operators exercise greater care in
selecting locations, they will be unable
eventually to secure insurance pro
tection at any reasonable cost. Still,
Mr. A. G. Hancock says, “The loss of
machines by theft and pilferage is
becoming a serious factor in deter
mining profits, and insurance is a vital
necessity.”
A sliding scale of premium charges
is now under consideration by several
insurance companies, which, if worked
out, will enable those operators with
good records to secure the lowest
rates.
The rates charged by one of the
standard fire insurance companies
for vending machines is written under
two sets of conditions, as follows:
A. Machines sold for cash and
insured against fire and theft of entire
machine (contents not included). Rate
$2.40 per $100 per year.
B.. Machines out on location, rented
for the account of the manufacturer
are insured against: Fire; theft of
entire machine (not contents); mis
use; and embezzlement by the rentee.
Rate 30c per machine per mon
where the value of the machine and
contents does not exceed $100.
T he O u tlo o k fo r C oin M ach ine s
in E u ro p e a n C itie s
\ F E W remarks on the situation in
these parts may be of interest to
American manufacturers, especially
now with the fall in value of the
dollar, and many of the leading fac
tories looking for fresh markets for
their Products.
We keep in close touch with coin
machine developments in America,
and knowing the market over here as
we do, we would first of all make the
position, insofar as the European
trade is concerned, quite clear. Sev
eral factories have been led to be
lieve, due to misleading statements
made by several European distribu
tors who have been able to pay a visit
to the United States,, that over here,
there exists a modem El Dorado for
coin machines, and they have con
cluded sole sale arrangements with
several of the leading factories on the
strength of these statements. No
sooner do we read that so and so
are exclusive distributors for one fac
tory, than we hear that distribution
has been transferred to another com
petitive distributor, and so it goes on,
and this period of less than two
months.
Distribution Set Up
One of the leading trade organs
here passed a few comments on this
same subject some time ago, and here
are a few extracts from their remarks:
“One can only hope that the British
distribution element will have no
cause to regret some of the afore
mentioned deals. A t the moment the
© International Arcade Museum
Ju n e , 1937
situation in certain cases seems just
as clear as a prize London fog. As to
where the blame can be accurately
laid, we cannot say, but unless this
scramble for all sorts and conditions
of American tables eases up mighty
soon, the market will become so sat
urated that pin game trade will be
worthless long before such a state of
affairs need exist.
“Concerning the distribution deals,
contracting parties from this side
should see that they are watertight;
the American factories should also do
their duty in that direction. When
any American firm makes a distribu
tion deal with a British concern, it
should play the game and do every
thing in its power to safeguard the
latter against piracy, at the same
time placing business honesty before
an obsession to accumulate dolars.”
“Promising the Moon”
These remarks, therefore, sum up
the position from the point of view
of the distributor over there. At the
same time, our personal view is, that
where a distributor has promised “the
moon” and eventually “comes down
to earth” and is only able to buy in
tens instead of in thousands, then this
manufacturer is fully justified, on the
strength of these misleading promises,
to treat him as incompetent, and if
approached by another distributor
who can back words by real business,
then he cannot be blamed for trans
ferring sales to the other party. Our
company has never made a point of
exaggerating the trade position, and
where we conclude an exclusive sales
arrangement, we do so only after due
consideration, and that we are able to
fully satisfy our factory by actual
business.
As far as we are concerned, we
have absolutely no complaints to
make against any American company.
Incidentally, we represent one of the
leading manufacturers over here, and
we have nothing but praise for the
fine business principles of this com
pany, and their close co-operation
with us has been a decided asset in
assisting our sales campaign for their
products. We never gave any high
sounding promises, but if we handle
a machine, and know it will suit the
market here, we push business whole
heartedly and if results are possible,
we know we will be successful.
Manufacturers Must Cooperate
However, it would be as well if
American manufacturers carefully
study the remarks aforementioned,
since it sums up the British point of
view. Needless to say, in cases where
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