1942-A CHALLENGE
The year ahead-what will it hold? With
increasing strength of our armed forces on
land, -on sea and in the air, we may look
for substantial gains in our war against
totalitarianism. Whether the year will see
out the conflict and the return of peace, no
one knows. We can only hope, and do
everything in our power toward that end.
The industry itself is gearing as rapidly
as it can-oftentimes with almost phenom-
enal speed-for the blow that will mean
Victory. Some have left the industry to
serve actively in combat. Many others have
volunteered their efforts in civilian defense
capacities. Plants are turning to produc-
tion of war material. Operators are filling
a specific need in maintaining the public
morale-a phrase which undoubtedly will
recur throughout the entire conflict.
Conclusions as to 1942's specific effect on
the industry can be made only in broad,
general terms. Perhaps the safest summary
is this: Operators, freed for the time from
the need for buying new equipment, will
find this a period of marked prosperity in
which they will recover the cost of their
equipment innumerable times over; the
public will accept devices in which there
is nothing of a new or novel nature. Op-
erators and distributors may find themselves
doing a steady business in parts and in re-
conditioned used equipment-provided they
can get the parts; otherwise, because of the
sharp drop in new production, they will
find themselves in difficulties. Manufac-
turers will turn increasingly to defense
work; all will continue to make equipment
as material permits. but probably none will
have a steady production as in days past.
A few firms will close up through inability
to secure defense contracts.
One strong possibility-and certainly
something to hope for-is that the genius
for development which has long marked
this industry will find unthought-of substi-
tutes for materials, or new ideas in equip-
ment which don't call for essential ma-
terials, with the result that huge strides
will be made in new directions. Such a de-
velopment would doubtless have its greatest
effect during the post-war years, whenever
they may come, as other industries re-tool
for civilian production and demand huge
chunks of required resources.
That all manufacturers have been given
orders to make sharp cuts in producti'on is
well known. OPM Priorities Director
Donald Nelson issued the first order De-
cember 10 when prohibition of the manu,
facture of coin operated gambling devices
was made effective February 1. Simultan-
eously other types of equipment were "ra-
tioned"-pronog:raphs, scales, games were
to have production reduced 25 percent in
December, 50 percent in January. 75 per-
cent in February, on the basis of average
production for the 12 months ending last
June 30. Effective immediately, use of
aluminum in any form of machines listed
in the order, was prohibited. No blanket
order had been issued at press time re-
stricting manufacture of vending machines,
but individual firms in this field had re-
ceived orders, and others were voluntarily
reducing lines.
Of their plans for 1942 few firms were
ready to release statements. In many in-
stances defense work is largely confir!ential,
and here, of course, little can be said. Some
'J"he picture loolas good lor
operators~ Dot bad lor Dlost
DlaDulacturers~ less good
lor jobbers aDd distribu-
tors. What ~s ahead,
of the comments received, however, are
summarized here:
Burnhart Glassgold, Ar thu r H . Du-
Gren ier, Inc.: No plans for new equip-
ment for 1942. "Though the curtailment
order has not yet been issued by OPM
affecting our particular branch of the in-
dustry, we have been definitely advised
that there will be a very substantial cur-
tailment. On the other hand, we anticipate
manufacturing to the limit of our allotted
quota and our ab ility to obtain materials
therefore. So far as defense work is con-
cerned, we are exerting every effort to lend
our facilities towards the War Program and
the government sources know that our facil-
ities are at their disposal."
H. B . J on es, Ba lly M fg. Co.: Pro-
duction in 1942 ' will consist chiefly of
pinball games and console arcade type
amusement machines-particularly the lat-
ter. "We have several new type arcade
machines ready for early announcement,
and it is our belief that these machines will
not only meet with considerable popular
favor at this time, but will be unusually good
money-makers for the operators. No good
purpose could he served by guessing at the
volume of our output for 1942. Suffice it
to say that within the limits of restrictions
and our industrial duty in time of war,
every effort will be exerted to supply op-
erators with the machines they require.
"As to Defense production, we are not
at liberty to publish a great deal of detail
about the work we are doing. One item we
are manufacturing, however, is of general
interest to the trade, and is a matter of
common knowledge so that we can publish
the general details of this item. This is a
gunnery trainer device, based on principles
which we developed in connection with our
photo-electric games, and which has been
approved by the Army Air Corps for gun-
nery training. Naturally, although only a
comparatively small part of our factory
has been used for Defense work up to this
time, we expect that during 1942, at least
75 percent of our facilities will be' devoted
to war work."
G. M. Hunt, Norris Mfg. Co.: "Right
now we are about as much up in the air
regarding the promises of 1942 as any Op-
erator (if not more so). We don't have
the materials and doubt if we are going
to get them in sufficient quantities to per-
Here w e go againl It's a n e w year
. • and time for the studios to pick
their n ew s tars . . . s o Paramount is
pinning its h opes on pretty blonde
PhyIIis Ruth. Up fr om the extra ranks,
a rarity these days, PhyIIis has h er firs t
featured role in "Louisiana Purchase."
mit quantity production. We do ~ot yet
have any defense work."
Packard Mfg. Cor p . : Announced the
purchase, at a price in excess of $100,000,
of a 500 by 90 foot factory building for·
merly occupied by the Beach & Arthur
Paper Co. Due to begin operations January
1, it was expected that the new plant would
begin manufacture of tank parts at that
time. Packard's other plant-the old Mar-
mon factory-likewise was due for conver-
sion into another defense industry plant;
I. F. Webb. Rock-Ola Mfg. Corp. :
Impossible to give accurate figures and
facts; "to try to predict any business out·
come for the year 1942 would be such a
long-odds gamble, that we would prefer not
to do any' predicting in ' print." Million
dollar defense contract for ammunition con-
tainers for the Army, covering a type of
equipment which the ' half-million-square-
fool' plant is particularly fitted to produce,
has been awarded here, said by President
David C. Rockola to be only one of several
recently received. Acceptance of the arma-
ment orders by Rock-Ola was a forerunner
of large purchases of new machinery which
will soon be in full production.
Nation al Vendor s, Inc. : All other
types of vending equipment suspended
from production, and efforts concentrated
in a nine-column cigarette vendor.
While not complete, this cross-section
gives a reasonably accurate picture of the
industry at present, insofar as manufactur-
ing is concerned.
On the jobbing and distributing front,
it is likely that prices for used equipment
will soar in proportion to the demand. Pre-
cedent has already been established for this
in France, as reported in the communica-
tion from Rene Godin, printed in the De-
cember REVIEW. In England and in Canada,
where all production of coin operated de-
vices has been terminated, inability to im-
port equipment from the United States has
meant mounting co~ts of used equipment.
Play on all types of amusement devices
(including music machines) quite possibly
will reach an all-time high. In any event
the period ahead provides the industry a
notable opportunity for sound self-exploita-
tion.
Some of the general business indi'ces, on
which any consideration of the forthcoming
year should be based, include these facts:
Notwithstanding the declaration of war,
1941 Christmas trade reached a near-all-
time high. . . . Though restrictions had
already been made on installment buying,
though new tax levies had been applied,
consumer demand for all types of mer-
chandise remained high.
Payrolls in factories have risen some-
what more rapidly than production, anr!
more persons are at work, notwithstanding
curtailments in some lines, than were em-
COIN
MACHINE
REVIEW
7
FOR
JANUARY
' 942