Coin Machine Journal

Issue: 1933 October

THE
4
C OI N M A C H I N E
October, 1933
JOURNAL
& M a n u fa ctu rers a n d ^D istribu tors
in H A R M O N Y
on N E W
Joint Sessions Establish Responsibilities
of Each in New Sales Set-up,
• Following the publication of the
constitution and by-laws of the Na­
tional Association of Coin Operated
Machine Manufacturers, a general
get-together was held Thursday, Oc­
tober 12, in the offices of the asso­
ciation at the Northwest Tower, Chi­
cago. A buffet luncheon was provided
and various manufacturers entered
into the discussion of the new prob­
lems before them under the NR A.
Action on the Coin-Operated Ma­
chine Industry’s Code at Washington
had been temporarily delayed pend­
ing a further study of the Fabricated
Metal Code situation. C. S. Darling,
manager of the association, spent
several days in Washington recently
during which time he attended the
public hearing on the Fabricated
Metal Code. Inasmuch as the Coin­
Operated Machine Industry comes
within the definition of the Fabricated
Metal Code, it would be possible for
this industry to operate under that
code, with the coin-machine people
having their supplementary code and
handling the entire administration of
these codes within the industry.
However, after a full discussion of
Mr. Darling’s report, the members
felt that they should proceed with
their own code and voted to take
steps accordingly.
During the meeting Mr. Darling
announced that a provision of the
Retailers Code which might have
proved seriously damaging to the
Coin Machine Industry had been re­
moved from that code, largely
through the association effort. This
provision had read as follows: “No
member of the retail trade shall pre-
mote or take part in commercial mer­
chandise lotteries or schemes of
chance.” This clause has been taken
out of the latest copy of the Retail­
ers Code, which is now (Oct. 13) in
the hands of Gen. Johnson, for final
approval and forwarding to President
Roosevelt for his signature.
It was previously pointed out in
T h e C oin M a c h in e J o u r n a l that
overlapping clauses of various codes
would command the attention of va­
rious associations. While these over­
lapping interests may cause some dis­
cussion they are only matters of arbi­
tration betwen the various industries
involved. What the operators and
jobbers are primarily interested in is
what the various sections of the man­
ufacturers’ code would have to do
with the merchandising of various
machines.
For instance, Article C is one of
the most important items in the mer-
candising structure of this industry.
In the past, the enthusiasm of the
All Manufacturers, Favor
Anti-Piracy Clause
It has been pointed out by
some of our readers that the
story on anti-piracy clause of
the new N. R. A. code appear­
ing in September COIN M A­
CHINE JOURNAL might be
construed as an editorial inac­
curacy in as much as every
member of the industry pres­
ent at the meeting was heartily
in favor of such a clause. There
was no objection t o . such a
clause and the only explana­
tion for this inadvertence was
due to the fact the meeting was
not open to the press and the
news had been broadcast be­
fore confirmation o f details
was available.
D E A L
new manufacturers particularly to
get machines on the market often led
to overstatements which eventually
amounted to misstatements of facts
regarding construction and installa­
tion of machines. Manufacturers, job­
bers and operators might do well to
study this section carefully.
Section B is another important
clause, probably the most controver­
sial subject we have before us today.
This clause has to do with the imita­
tion of trade marks, trade names,
package, or design in such a manner
as to be called a deception in order
to sell a new product.
'
Section E is also even more em­
phatic in regard to what is known as
piracy. The intentional substantial
copying of the design or construction
of the machine is made a violation of
the code.
Section F if religiously adhered to
will make it possible for manufactur­
ers to enter into such contracts with
a feeling of confidence that they will
not be undersold at a later date.
Another great evil which has run
through this industry for a great
many years is covered under Section
H wherein it is a violation of the code
to. willfully entice away employees of
competitors for various reasons. There
has always been too much selling of
the other man’s ideas by trusted em­
ployees. There will always be some
of this but if the manufacturers who
signed the code live up to the provi­
sions to which they subscribe direct
copying and pilferage of the other
man’s plans in advance and wrecking
of sales organizations will be an ex­
ception rather than a common occur­
rence in the future.
There is nothing in the code that
supplants the functions of the patent
and registration bureaus. However,
in the past ambitious competitors
have been able to take advantage
of the intricate and involved patent
regulations enabling them to profit by
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October, 1933
another man’s labor and investment.
It is probable that severe penalties
will be attached to violations of these
provisions and anyone adjudged
guilty will run the risk of a heavy
fine and probably ultimate dissolu­
tion of his business.
The code has wisely provided for
a committee of arbitration so that no
well meaning manufacturer may be
imposed on in the event there is a
similarity between his product and
that of another producer, and he
might be made the object of unjust
persecution. The code provides that
these violations must be found to be
intentional. Already, there has ap­
peared in the industry some contro­
versy as to the similaritvof various
machines. Contentions/ oi^a^QUS
manufacturers shmild not take the
form of arbitrary claims, but should
be entered in/RfBjLeveryone concerned
with a spirit of consideration for all.
The code is not designed to make
it possible for one man or group to
dominate the industry but was de­
signed for the protection of all. In
order to eliminate a great deal of
friction that might develop manufac­
turers should take definite steps to
establish their priority by being sure
of the source of their ideas, their de­
signs and the development of their
machines.
Hand in hand with the activities of
the manufacturers in developing the
code the coin machine distributors
met in Chicago October 13 and 14 in
a general session to effect contacts
that would clarify the various provi­
sions so that there would be no fric­
tion developed between the producing
and distributing agencies. Jobbers
and distributors, through the National
Automatic Distributors Association,
have gone on record as being opposed
to selling of machines that are direct
copies. They have agreed that they
will maintain the price structures that
are set up by manufacturers. In
other words, manufacturers will de­
termine individually who shall be
their distributors. These distributors
will buy their machines at distributors
prices. These distributors, in turn,
will sell to the jobbers at the jobbers
price and the jobbers, in turn, will sell
S
THE COIN M A C H I N E J O U R N A L
Code of Trade Practices
Adopted by the
NATIONAL ASSOCIATION OF COIN-OPERATED
MACHINE MANUFACTURERS
(To be attached to and become a part of the Code of Fair
competition for the manufacturers of coin-operated machines)
(Under the National Industrial Recovery Act)
The following provisions are hereby adopted and made a part
of this Code:
s
The intentional misrepresentation of the products sold, or the
c l I making, or causing or permitting to be made or published, of
any false, untrue, misleading or deceptive statements, by way of
advertisement, invoice, or otherwise, concerning the size, quan­
tity, character and nature of any coin-operated machine or kin­
dred products, bought or sold, is a violation of this Code.
(
Withholding from, or inserting in any invoce, words or fig­
ures which make or tend to make such invoice a false record,
wholly or in part, of the transaction represented on the face
thereof, and of the payment or allowance of secret rebates, re­
funds, credits, unearned discounts, whether in the form of money
or otherwise, is a violation of this Code.
The making of, or causing or permitting to be made, any false
£ I or deceptive statements, either written or oral, concerning installa-
' tions or sales previously made, or the claiming by any manu­
facturer that equipment actually supplied and installed by others
was supplied and installed by him, or the making of any other
misleading or deceptive statements, is a volation of this Code.
(
.
To imitate or simulate the trade mark, trade name, package,
wrapper or label of a competitor’s product to such a degree as
to deceive or have a tendency to deceive customers, is a viola­
tion of this Code.
(
/
.
The intentional substantial copying of the design or construc-
0 J tion of a machine containing new or novel features, or any ma­
terial parts thereof, after it has been nationally marketed, is a
violation of this Code.
Inducing or attempting to induce, by any means or device
whatsoever, a breach of contract between a competitor and a cus-
tomer during the term of such contract, is a violation of this Code.
I t I
'
. . *
( 2 )
^ ^
/I Y
I O I
Securing information from competitors concerning their busi-
nesses by false or misleading statements or representations, or by
false impersonation of one in authority, and the wrongful use
thereof to unduly hinder or stifle the competition of such com­
petitors, is a violation of this Code.
Wilfully enticing away the employees of competitors with the
purpose and effect of unduly hampering, injuring, or enjbar-
rassing competitors, is a violation of this Code.
to the operators at the operators price.
Such an arrangement can only
bring good to the industry and almost
automatically eliminate chiseling of
prices.
If adhered to religiously every
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manufacturer will have an even break
in getting his machines on the market
and these distributing agencies will
have an even break in the distribu­
tion, and final profits that result from
their sales. (Continued on Page 13)
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