Coin Machine Review (& Pacific ...)

Issue: 1939 July

OPPORTUNITIES
II
by
HAROLD S. KAHM
Herewith we presen t additional coin-
operated opportunities by Harold S .
Kahm, author of "New Business Op-
portunities for Today." Brought up in
the amusement industry Mr. Kahm is
well qualified to discuss opportunities
in our great industry. His first article,
in our May issue, accounted for con-
siderable discussion and brought forth
requests from our readers for addi-
tional articlelil b y this eminen t author-
ity.-THE EDITORS.

I. Every large hotel has a severe prob-
lem on its hands which it would like solved,
for its solution would mean better service
for its guests. This problem concerns the
stranger who comes to town for a couple of
days, is sick of seeing movies, and is lone-
some and bored. You can wander into any
hotel lobby in the country and see these
people sitting around, doing nothing, or
thumbing through a magazine or newspaper,
killing time after dinner.
This problem could be partially relieved
by the establishment of an "amusement
room" in every large hotel, equipped with
coin-controlled amusement devices. To be
sure, some hotels do have one or two auto-
matic devices or other somewhere in the
lobby or mezzanine floor, but the amuse-
ment room idea is an entirely different
matter.
This amusement room could consist of
any l>rdinary fairly large hotel room, prefer-
ably located off the lobby or mezzanine. Its
equipment might include the following de-
vices: Three or four automatic games for
two, such as Hockey, Baseball, Basketball,
etc., two or three strength-testers, some pin-
ball games, Skee-ball, or Skee-roll alleys,
automatic billiards, and other devices.
There would also be a coin-controlled
phonograph, and perhaps a small bar, or re-
freshment counter installed by the hotel.
Prizes, not cash, should be offered to the
high-scorers of the various games, the prizes
cons1stmg of items which would be most
appreciated by travellers - handkerchief
kits, leather folders, baggage tags, local
souvenirs, travelling kits, books, etc.
The room should be well furnished, with
comfortable chairs, to encourage lounging.
The decorations should be colorful and gay.
The chief purpose of the room, aside
from offering a means of killing a little time
pleasantly, would be make people sociable,
so that strangers could become acquainted
easier, thus relieving the problem of lone-
liness .
The amusement room could be advertised
simply by cards in the elevators.
A great many hotel managers would be
glad to cooperate with coin machine oper-
ators in the planning and equipment of such
a room. It goes without saying that in a
first class hotel all of the devices installed
should be of the newest and best type, in
suitable cabinets stained or decorated to
conform with the general color scheme of
the room.
A chain of amusement rooms of this type
could be established across the country,
taking in hundreds of the larger hotels.
One important factor to consider is that
the patrons of good hotels generally have
plenty of money to spend.
.
2 . The railroads today are using every
means in their power to increase the com-
fort and pleasure of their passengers, in an
effort to meet the growing competition of
automobiles and busses.
One of the problems which they would
like to solve concerns the entertainment of
passengers on long trips. It is an ordeal for
the average person to sit quietly doing
nothing for two or three days of a transcon'.
tinental journey. The smallest offer of
amusement is seized upon with a good deal
of eagerness.
It might not be difficult to induce a rail-
road io provide a small space in each of
several cars for the installation of some
small-sized coin-controlled games, Three or
four new games in the First Class lounge
car of a transcontinental train should do a
capacity business. If the train carries a
cocktail lounge car, other games could . be
installed there profitably. The First Class
passengers in . any train are invariably the
monied people.
However, the coaches are not to be over-
looked either, and a great deal of business
could be obtained from this class of pas-
senger.
The important point ·is that there are
many games which take up a very small
space, and in allotting this space to them,
any railroad would be helping to ovucome
one of the major passenger problems, which
is lack of entertainment.
It is not only the transcontinental runs
which should be considered for this, but
the shorter runs as well. Even a nine or ten
hour trip, by day, represents hours of bore-
dom for hundreds of passengers.
3 . Amusement facilities in a vast major-
ity of American small towns are extremely
limited. The least novelty attracts people
not only from the town itself, but from the
surrounding country. The carnival industry
is founded upon this fact, and every sum-
mer hundreds of carnival companies set up
shop in these small towns and do a great
deal of business. Even towns of as little as
three hundred pof)ulation have proven satis-
factory for carnival companies because of
the drawing power of the countryside.
However, carnivals are outdoor enter-
prises, and cannot do business during the
rest of the year. During a good six months
of every year the average small town's
amusements are extremely limited.
It is during this season that the auto-
matic world has its best opportunity to cash
in heavily. It can be done very simply by
means of a travelling unit, located in tem-
porary stores in each town for a period of
0;1e to three weeks. This unit may consist
simply of a large number of attractive coin-
controlled amusement devices.
It should be a sort of miniature indoor
carnival, with the true midway spirit main-
tained through the use of plenty of music,
lights and color. All the young people of
the town would be among the first patrons,
and they would spread the word rapidly.
The cooperation of local merchants could
be secured in advance to insure smooth sail-
ing in every respect. For instance, a local
restaurant man could be permitted to install
a refreshment counter; another could have
the candy concession. Other merchants
could be permitted, either free of charge, or
for a small fee, to put up signs advertising
their merchandise. A local Church could
be invited to set up a counter to sell cakes,
or other goods. In this way the townspeople
would feel they wefe benefiting directly
from the enterprise. Thi's procedure is not
necessary, but it is advisable as a means of
securing universal goodwill.
The equipment should include all types
of new games. Skill games such as Skee-
ball should operate with easily-won small
prizes, such as a good quality candy.
The exterior of the store should be illum-
inated with . a floodlight, or stringers of col-
ored lights,"!md a loudspeaker should carry
the music to the street. An ·excellent way to
advertise other than this would be an ad-
vance ad in the local paper, and free adver-
tising balloons passed out to the town
kiddies.
Eventual1y it would be possible to build
up a travelling indoor arriusement arcade
that would include every known automatic,
coin-controlled amusement device.
In the summer time, this enterprise could
operate under canvas with a carnival com-
pany, or else locate in an amusement park.
The money-making possibilities are un-

limited.
7
COIN
MACHINE
REVIEW
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Largest Board and Card House In t he World
6320 Harvard Avenue
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Calcutt Subject of
Added Publicity
8
COIN
MACHINE
REVIEW
The coin machine industry's "most pub-
licized man" for 1939 is rightfully Joe Cal-
cutt owner and operator of the Vending
Madhine Company of Fayetteville, North
Carolina.
Calcutt made the national news recently
in the much discussed "Ten Billion Nick-
els" in the Saturday Evening Post for May
13. The Post article credited him with con-
siderable influence in the industry and as
being one of the largest operators in the
country.
A more recent story, dealing with Calcutt
and his Vending Maching Company, is a
front page spread in the News and Ob -
server of Raleigh, North Carolina, for June
4. He~e Calcutt becomes the "czar" of coin
machines in North Carolina and Maryland,
and his machine operations are discussed to
some extent, telling no doubt, many things
about Calcutt that he himself did not know.
The cause for the recent newspaper pub-
licity originates, undoubtedly, in a · recent
change of the legislation controlling slot
machines in North Carolina. Heretofore
illegal, slot machines were legalized at the
1939 meeting of the legislature. The mach-
ines will pay a license of $20 a year each
and, according to the Observer, "Calcutt
estimates that there will be 25,000 of them
licensed."
The newspaper attributes Calcutt's suc-
cess to his "flexibility." "No slot machine
manufacturer has ever devised a machine
more flexible than the business methods of
Calcutt himself. Just as the machines he
distributes depend upon varying local laws
and more important upon the varying strict-
ness with which those laws are enforced,
so are his operations governed. Operating a
business, which in some sections of the
country is completely disreputable, he has
by his conduct in Fayetteville surrounded
himself with a very high degree of respect-
ability.
"In 1937 the Flannagan act outlawed all
slot machines in North Carolina. The 1939
Revenue Act makes it possible for slot
machines to be operated in the State. In
Maryland a law that allowed the operation
of the machines for two years has now ex-
pired, and has not been renewed, therefore
North Carolina is the principle field for slot
machin e operations at the present time."
The Observer related that Calcutt "now
operates 128 trucks, each carrying two
salesmen and each servicing, and collecting
from around 100 machines. As of June 1,
the effective date of the new law, 112 of
these 128 trucks were operating in North
Carolina, the others being scattered over
six or seven States.
"During the two years the Flannagan act
was in operation, Joe Calcutt was giving
full proof of his own 'flexibility.' Music
machines and weighing machines were of
unquestioned legality. With them he main-
tained his locations and also increased his
profits and furthered his n;lations with the
proprietors of those locations, with whom
the profits of the games are divided, by
selling vending machines operated by slots.
That type of machine Calcutt sells outright.
"A visit to his home city of Fayetteville
showed the kind of reward sometimes
reaped by persistence. It was not necessary
to leave the principal street of the city to
find in operation not only the more modern
' pin ball' games, which with variations are
the 'amusement' machines in 1939, but the
'one-armed bandit' machines, the kind that
pay off with a jack pot, were also in
operation."
Joe Calcutt builds good will wherever he
operates. In Fayetteville he is one of the
leading citizens and takes an active part in
the town's social and business life. He has
in his organization only the highest type of
men he can employ. He prides himself on
having the highest paid stenographers, 18
of them, in the State·and on paying a mini-
mum wage of $17.50 a week, which is re-
ceived by his Negro porters. He contributes
substantially to churches and all charitable
causes.
The Calcutt pay roll is approximately
$300,000 a year- not including commissions
which go to make up his vast expense. He
is the largest user of telephone and tele-
graph wires in North Carolina as well as of
stamps and other mailing facilities. It is
indeed a big business operated in a modern
manner, with every indication that it is
there to stay.
All of these points are covered in the
Observer's article dealing with Calcutt, and
the man himself is not neglected. Of Cal-
cutt, the paper states, "He is quite a differ-
NAME
AND
ent person from the type one might expec.
to find. He is 43 years old, but looks
younger, is smiling, courteous, and at times,
slightly embarrassed. If he answers ques-
tions at all, he does so frankly, althoug;h
there are some subjects he prefers not to
discuss.
"But the most casual meeting with the
man would leave any stranger with one cor-
rect impression of him. He is a born sales-
man and shows it in any sort of contact.
Perhaps the reason he is selling slot mach-
ines instead of insurance or automobiles
or something else is due to accident. Per-
haps it is due to the excitement attendant
upon vast but uncertain gains.
"Legends have been built up about Joe
Calcutt in Fayetteville. But none of them
involve any rough stuff! He prides himself
upon not knowing any gangsters, although
he is in a business in which gangsters have
played important roles in other sections of
the country."
How Calcutt got into the coin machine
business is related to some extent in the
Observer article. Calcutt's father operated
a livery stable in Hope Mills, a village near
Fayetteville. Joe began driving for his
father at an early age. According to re-
ports, one of the regular patrons :was an
itinerant slot machine operator. In time Joe
developed into an assistant, then a proxy
and finally a principal. Later, in Hopewell,
Virginia, he developed a slot machine busi-
ness that proved very profitable.
From Hopewell, he drifted to Charles-
town West Virginia, where he was even
more' successful. After working for a while
in the industrial plant he entered the slot
machine business in Danville, Virginia.
Later Calcutt returned to Fayetteville and
went into the coin machine business on a
big scale. Definitely established, he now
leads a quiet life. His son and daughter
are. in college and his family is his greatest
interest.
Calcutt's reputation today is national.
It definitely extends beyond slot machine
circles. He is conceded to be the largest
distributor of slot machines, although oper-
ating principally in North Carolina. As
noted in the Observer, Calcutt's standing in
big business is shown by the contacts he
has with the largest manufacturers of coin
operated machines. He handles everything
operated by slots and has dealings with all
of the larger companies.
That Calcutt's influence goes beyond the
State of North Carolina and outside of the
coin machine industry was shown recently
when Grover Whalen, head of the New
York World's Fair, appointed him to act on
the advisory committee for his State. At
first Calcutt declined the offer but later ac-
cepted and has played a large part in the
representation of North Carolina at the
World's Fair.
No doubt slot machines were Joe Cal•
cutt's first love, but when and if slot mach-
ines disappear entirely there is little doubt
but that the Vending Machine Company of
Fayetteville will still be in the coin machine
~~-

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