Clarifies 5%
Tax
LOS ANGELES-In a letter received
here by the Southern California Tavern
Association, Deputy D. S. Bliss of the
Treasury Department clarified the 5% cab-
aret tax and its application to locations
using automatic music.
Said Bliss: "It is stated that certain
cafes, restaurants, etc., furnish mechanical
music machines and intend to cover the
dance floors with rugs or tables to prevent
the patrons from dancing prior to certain
hours during the evening. Advice is re-
quested as to whether the amounts paid for
OAKLAND-One of the busiest organiza-
refreshment, service and merchandise prior
tions of coin machine operators in the entire
to the time the entertainment starts, are
country is the California Music Operators'
subject to the tax.
Association headed by their dynamic state
"During the time the floor is covered
President, George A. Miller.
with rugs or tables and no dancing is per-
The Association held their annual stag
mitted, the entertainment does not qualify
party a month ago and had some fourhun- -
as a public performance for profit within
dred in attendance, including many out-
the meaning of the Section."
standing city and county officials, such as
If a cafe or simila,r places has an auto-
the Chief of Police, .. ity Councilmen, and
matic phonograph and space for dancing,
but has a permit for Saturday nights only • Supervisors, as well as assemblymen and
Senators. An excellent dinner, top-ranking
when an orchestra is employed, the location
floor show, and enjoyable evening was had.
is liable for the 5% tax on all refreshments
Speaking of the many activities of the
service and merchandise vended for th~
group, prexy Miller said: "The California
entire week.
Music Operators' Association has put on a
Questioned as to whether receipts from
Defense Bond drive in Northern California
an automatic phonograph were taxable
and the members of the organization have
Bliss said: "The 5% tax imposed by sec-
purchased over $20,000 in defense bonds to
ti~n 1700e of the Code, as amended, ap-
this date. Our quota is $50,000 and we are
plIes only to those amounts paid for admis-
certain to attain it.
sion, refreshment, service and merchandise
"Another one of our activities is a book
at a cabaret or other similar place furnish-
and magazine drive which was 100% suc-
ing a public performance for profit and
cessful and several carloads of books and
it is held that coin s deposite d b y pat -
magazines were delivered to the various
rons in a mechanical music machine
army, navy, marine and air corps bases.
do not con stitute amounts paid for
From time to time our group has been
a d mission, refr eshment, service or mer-
called upon to donate phonographs to the
chandise within the meaning of the
various military bases and Red Cross chap-
section."
Where there has been a misunderstanding . ters and in each instance we have complied
and provided machines that will remain the
of _ the l~w and the tax has not been paid,
property of the army, navy, or other parts
BlIss saId that the locations will only be
of the service for the duration of the war.
liable for tax from the date they became
"In the last few weeks we have called
aware of the ruling in Mimeograph CoIl.
upon every music operator in our area to
No. 5321.
donate at least ten records for distribution
to the various parts of the U. S. defense
service. The men have responded 100%
CHICAGO - The American Society of
and records have been supplied the various
Composers, Authors and Publishers, long-
army posts."
time nuisance to coin machine locations,
The Wired Music Industry has co-oper-
has a new theme song, "Not to Sue But to
ated splendidly and President Miller's last
Sell."
speech was broadcast into every tavern that
According to a statement by John G.
had wired music. The System is also being
Payne, general manager, ASCAP will
used for blackouts and other emergency
warnings.
change its tactics in regard to collections
The membership can well be proud of the
from music users and will henceforth em-
six year record of the California Music Op-
ploy a persuasive sales technique rather
erators' Association for it has functioned
than threat of suit.
probably as well and even better, than most
Speaking at a meeting of ASCAP dis-
music operator organizations and has per-
trict managers and field agents, Payne
formed a real service to both the operator-
stated: "AS CAP is changing from a pro-
members and the general public.
tective policy to a sales policy. In this con-
T.o aid in giving better service to the
nection the society recently dismissed its
membership President Miller has an-
lawyer representatives and replaced them
nounced that Jack Grant has just been em-
with businessmen."
ployed as his assistant and is already doing
For 25 years, ASCAP has used a dis-
a splendid job in working with the
tinctly legal approach, collecting its fees by
operators.
litigation, and its lawyer representatives
"Jack is a military man and has a verv
were accustomed to obtaining fees by the
wide acquaintance of friends around the
threat of suit.
Bay District," said George, "and with his
ASCAP, which emerged much chastened
after major networks banned its music for
10 months of 1941, will use its agents as
salesmen, who will keep users informp.d
of composers' latest works and aid in mer-
chandising the tunes.
California Music Operators' Association
Conducts Varied Activities
ASCAP Gets In Line
D E
c c
All-Star
The Wise Operator
Is Buying Ihe BENNETI
4000-PLAY NEEDLE
A
Records
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COIN
MACHINE
REVIEW
GEORGE A . MILLER , State President
California Music Operators' Ass'n .
various connections he is bound to be an
asset to the organization as well as a good
assistant to me."
State President Miller will still be in
complete charge of Northern California
and the East Bay district, but will have
more assistance in handling many of the
minor details.
Miller believes, as does Grant, that the
California Music Operators' Association is
still one of the finest organizations in the
United States and certainly has a group of
the finest gentlemen for members. THE RE-
VIEW seconds the expression and sincerely
thanks the Association for the nice tribute
paid it in the advertising columns of this
issue.
Whatls In A Phono?
WASHINGTON, D. C.-Here is some
consolation for those who may be affected
by the recent War Production order ban-
ning manufacture of automatic phono-
graphs after May 1st.
One large phonograph contains enough
brass to make 750 cartridge cases, enough
steel, 130 pounds, to make five light ma-
chine guns, and 42 pounds of plastics which
can be used for control panels on army
and navy planes. The aluminum in 125 of
the larger size would be enough for one
fighter plane.
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"It must be terrible for an opera singer
to realize that he can never sing again."
"Yes, but it's much more terrible if he
doesn't realize it."
at
- only on
JACK CUTSHALL D1ST. CO.
C A
1870 W. Washington Blvd . , Los Angeles
Mention of THE COIN MACHINE REVIEW is your best introduction to our advertisers.
lS
FOR
APRIL
1942