Coin Machine Review (& Pacific ...)

Issue: 1937 October

By H. L. MITCHELL
been called a racketeer. I've been termed
I 'VE a gambler.
I've been asked how much we "pay
wondered why a machine couldn't be constructed
to perform the same function, and profitably.
Finally, out of a lot of cogs and gears came the
off."
And all because I'm connected, in a sort of way, first coin operated device, a dial machine called
with the coin machine industry, the business that "Horseshoes." Then he drifted west and went to
has developed the use of coin controlled devices work on a new machine that would use the same
to the point where amusement, recreation, service principles but with the added feature of paying out
and the receipt of merchandise may all be gained an award to fortunate winners. It took time, and
once a stern-faced landlady threw him out for "mak-
by the drop of a coin in a chute.
Gentlemen, I'm no racketeer. I don't gamble- ing such a racket at three o'clock in the morning"
neither in coin machines, nor on the ponies, nor on (to which he meekly replied, "How did I know what
anything else you could name. I don't even bet time it was? My clock stopped.")
on the weather- particularly not in Southern Cali-
At last he had it. When the proper combination
fornia. Above all, the only pay-off with which I'm showed through a window a corresponding number
concerned comes at the middle and end of the of coins rattled down a delivery chute. He called
month when I get a salary check and go out with it "Liberty Bell." It was, as you doubtless suspect,
it to appease the merchants from whom I have a "slot" machine, and it was the foundation of a
new industry.
bought things.
Fey tried out his machine in a San Francisco sa-
Briefly, my connection with the coin machine in-
dustry involves the production of a trade magazine loon-of which, then, there were a number. The
which goes to a majority of the men in this coun- results were surprising, and he went at once back
try who own and operate coin controlled devices, to his shop to make more of them. Ship crews,
and pursuant to those duties I write and edit news drifting in to the Barbary Coast from Alaska~
copy and feature material, prepare advertising copy South America, Australia and the Orient found the
and layouts, build advertising and subscription pro- devices fascinating and played them ' almost to the
motions and, in short, do the numberless things cen- exclusion of other forms of amusement. Thus, from
tering not around the coin machine industry but a strictly moral viewpoint, it might be said that
around the publishing business. From that point the slot machine saved many a man from something
of vantage, you may be certain, I get a view of the worse.
Finally, after he had the town thoroughly cov-
coin machine picture as a whole that is obtained
by few actually in the business. It's an interesting ered, and had begun to place machines in surround-
ing ar6C1S, the job got to be too much for Fey and
picture.
If you want to trace it down you can find records he hired an assistant whose sole job was to go
of coin operated devices before the time of Christ. into the basement and sort coins. Ripley would
As early as 1825 someone in this country made a like this one, and it's true: In Fey's basement nail
machine for selling chewing gum. But, according to kegs lined the wall, bulging with coins- some full
existing records, the first modern coin operated de- of nickels, others full of quarters. And after he'd
vice of commercial importance was attributable to been at it for a while the hired man began to com-
a twenty-year-old English boy, one Charles Fey who plain about the quarter-kegs. It was so much trou-
now, at 76, lives in San Francisco. Of a mechani- ble, he said, to go through the big piles and separate
cal cmd inventive turn of mind young Fey crossed the two-bit pieces from the five-dollar gold pieces I
the Atlantic shortly before h is twentieth birthday
As interest in Fey's machine continued and in-
and settled in Wisconsin with a
creased the inventor built other
vision of bigger opportunities in
~ypes. From them developed the
'essentials of current advertising
America than seemed to exist in
practice. Obviously there were
his and London's Cheapside.
The first proof of hfs ability The Associate Ed itor's college fratern ity too many machines for one man
came when he conceived; created, as~ed for a story about the coin mach ine "' and a number of assistants to
patented and sold to a Chicago industry for publication in the fraternity's handle, particularly when the
manufacturer a beam scale. Then, national magazine. . That account is pub- head man was mostly interested
with the thousand dollars which lished he re to show the sort of publicity in creating. And men from other
his invention brought, he returned which the industry can have if it goes after parts of the country had seen and
to new fields. Punchboards were it, and above all, the sort of publicity that wanted machines.
popular in those days and Fey
is of real value to it.
(Continued on Page 22)


13
First the Cigarette Manufacturers, Now the Coinmen.
CAMOA Builds Play, Good-Will.
14
There IS something new under. the sun, in -spite
of what the sages say, and that is the method of
combining familiar elements with familiar settings,
but in an unexpected manner. You, as a reader of
the daily newspapers, are familiar with prize con-
tests. Particularly are you familiar with the two
cartoon contests, one completed and the other newly
opened, sponsored by a cigarette manufacturer.
And you, as an operator or jobber, or as one con-
nected in some way with coin machines, are famil-
iar with marble tables.
These, then, are the familiar elements. The unex-
pected comes in the combination of the two. And
the California Amusement Machine Operators' Asso-
ciation of Los Angeles is the instrument by which
these elements were brought together. CAMOA not
alone has determined to prove there is something
new under the sun, but has decided at the same time
to build itself an unusually large amount of good-
will and a vastly increased following among players
of marble games.
Old Gold's and CAMOA's contests are similar.
Both use newspaper space to announce details, both
offer awards for filling in the best answers to a
series of cartoons. In one instance the contestant
says something about Old Golds in answer to a
comment from someone in the cartoon. In CAMOA's
contest, likewise, one person in the picture has said
something about marble games and the contestant
simply fills in the empty balloon.
Chief difference in the two contests are: Old Gold's
contest runs for fifteen weeks, CAMOA's one week
each for four weeks; Old Gold's prizes total $250,000
(first prize $100,000), CAMOA's $20,000 (first prize
each week $1.000); in 010. Gold's current contest you
smoke Old Golds, send in wrappers with each an-
swer, in CAMOA's contest you play marble games,
send in receipts showing that you've played.
Like Old Gold's second and current contest, which
was planned as long ago as last ApriL CAMOA's
board of directors considered a wide variety of
plans, studied long, finally chose the one now in use
as most satisfactory, both from a legal standpoint
and from that of building up play on the games. And
CAMOA Counsel Charles Cradick believes that the
plan is entirely legal. Los Angeles' District Attorney
Buron Fitts has intimated a similar belief.
Professionally planned, the success of the cam-
paign will depend .~ntirely upon the cooperation of
members of CAMOA in selling it to locations, Crad-
ick indicated, and this selling is entirely the opera-
tors' responsibility. With careful analysis it is evi-
dent that there are actually two motives behind the
contest. First of these, of course .. like Old Gold's,
is to build up interest, to bring more profit to the
operator; the second is prevention of petty losses.
In the past there have been frequent instances of
cheating and theft on the part of location owners,
more often than not in the matter of payouts. Under
the new plan, not only are payouts of any sort elim-
inated entirely, but the merchant in whose place a
CAMOA machine is located has no choice but to
be honest.
Under the method of operation CAMOA, which
has copyrighted a new trademark and has planned
its use in many ways during the run of the contest,
has brought into Los Angeles 3,500 pounds of special
tokens bearing the name of the Association. Instead
of playing nickels or ordinary tokens, as so fre-
quently happens, the player will use these special
checks, buying them, at a nickel apiece, from the
merchant, though he is not required to use them in
the place where he bought them, nor at anyone
time. At the same time he huys the tokens with
which he plays the games, he receives a corre-
sponding number of receip"'t s indicating his pur-
chase, and with each answer to three cartoons he
is required to mail in five receipts.
Still a further advantage of having the player
step to the counter before he plays the game is the
fact that all money is kept out of the cashbox, mak-
ing the coin trays poor prey for would-be burglars.
These receipts which the merchant issues are
charged to the proprietor at two-and-one-half-cents
each, reducing the percentage in all instances. Thus;
if, when the collector comes around, there are 100
of the man's tickets gone, he must account for $5.
Fifty per cent of the amount is deducted for cam-
paign expenses (the two-and-a~half-cents already
charged) and the balance is divided between opera-
tqr and location according to the usual percentage
basis. The operator then leaves the place with sev-
enty-five per cent of the proceeds, of which he turns
over forty per cent to the campaign.
As a legal measure necessary in all contests to
prevent classification of them as· lotteries, CAMOA's
contest bears the additional note that receipts are
not necessary to enter; the contestant may, if he
chooses, draw five reasonably accurate facsimiles.
First public announcement of the contest reached
the public Monday, September 27, in the Los An-
geles "Daily News," where there appeared a bold
spread, reproduced herewith, covering six news-
paper columns by ten-and-one-half-inches. Monday
evening's "Herald and Express" carried similar
space, and in ensuing days the "Times" and "Exam-
iner" also had the ad. Later on in the week the
various metropolitan papers had black column-
length advertisements or bottom strips that the pub-
lic couldn't miss seeing.
~
On location, Monday morning, early players were
first struck with a . window announcement of
CAMOA's contest. Inside the location the message
was repeated in cardboard posters placed above

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