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Music Ruling Clarified
WASHINGTON-On January 29th the
office of the Commissioner of Internal Rev-
enue, issued the following interpretation of
the Entertainment and Cabaret Tax as it
applies to music boxes:
"If the entertainment consists of instru-
mental music, music by wire or by a me-
chanical device, including a coin-operated
machine (wh etber operated by the manager
or patron)", and a space is provided for
dancing, the entertainment constitu tes a
pu-blic performancll for profit at a roof
garden, cabaret or similar place and th e
amounts paid for admission, refreshments,
servic~ and merchandise by all patrons who
are present or who are entitled to be
present during a portion of the entertain-
ment, are subject to tax_
"If instrumental music, music by wire
or by a mechanical device is the only en-
tertainment furnished and there is no
space for dancing, -the tax does not apply_
"Every licensee required, under the pro-
vision of the law, to collect or pay any tax,
should make application at once for reg-
---- istry with the local Collector of Internal
Revenue on Form 752_ This law took
effect Oct. 1, 1941, and back tax will have
to be paid where dancing and entertain-
ment has been furnished through the use
of coin-operated music boxes, either wire
or mechanical. No penalty will be assessed
against licensees by the Collector for hav-
ing fai led to pay in cases involving music
boxes, if you register at once with the local
'office, making known to them that you are
and have been subject to the_ 5% Tax_
Register, pay your, Tax for February on
March 1st and March on April 1st and the
Collector will inform you as to amount due
for period back to Oct_ 1, 1941."
REV.lEW Protests Tax
LOS ANGELES-On February 25th the
COIN MACHINE REVIEW dispatched the fol-
lowing wire to Secretary of the Treasury
Henry Morgenthau:
_
" On b e h alf of th e 5,000 opera-
tors of coin-controlled p h on o -
g r a phs a n d th e tho u san ds an d
th ou sands of loca tion s in wh ich
these p h onograph s su p ply mor a le
mainta ining music d aily we re-
q u est that a m o r e libe r a l in terpre-
tation b e given to Section 1700 of
th e I n tern a l R evenue Code as
i<
M U ~ I [ * *-
amende d b y Section 542 of the
R evenue Act of 1941, a nd that th e
ruling of D ep u ty Commissioner
of Reven ue D. S. Bliss, u nde r
d ate of Octobe r 8, 1941, be p e r-
mitted to s ta nd. A tax of 5 %
would amount to a p r ohibitive
p enalty upo n th e mainten a n ce o f
phon ographs in these localities."
The ruling of Deputy Bliss specifically
exempted loca tions where automatic music,
whether by machine or wire, was used.
The action of THE REVIEW in this in-
stance was backed lip by wires from a
great number of music operators and As-
sociations in the Southland.
Under date of February 27th the Treasury
Department replied as follows: "On behalf
of the Secretary, I am acknowledging your
telegram of February 25, 1942, protesting
the application of a five percent cabaret
tax. This is a subject which is having
the attention of those members of the
Treasury staff engaged in studying such
problems. Your comment is appreciated and
you may be assured that all aspects of the
situation are being carefully considered_
Sincerely yours, (signed) Ferdinand Kuhn ,
J r. , Assistant to the Secretary."
Standard Signs "Log Jammers"
. NEW YORK - Standard Records has
discovered another new novelty outfit, Dar-
rel Fisher and his Log Jammers, and have
signed them to a recording contract.
Originally organized in Minneapolis sev-
eral years ago the outfit is currently at the
Diamond Mirror in Passaic, N. J., where
such instruments as the wash-board, a mu-
sical tree and peanut whistle lend their aid
to the unique renditions.
Recording for the first time Standard
picked "Turkey in the Straw" and "Tree
Waltz" for their first disc, shortly to be
released to musi cmen.
Ass'f. G eneral Sales
Mgr. Spence Reese
complimenfs Wurlit-
z er d esi gn er Paul
Fu ller over his latest
creation. the Vicfo ry
Model 950 which in-
t roduced such new
feafures a s t he Pipes
of Pan and Fawn paf-
tern glass panels.
Co nti nua ti on of
cha mpag ne bubbl e
illum in a t ion marks
the carry-over of an-
other popular W ur-
litzer innovation and
the introduction of
Fluorescent lighting
combines tremendous
eye appeal with eco-
nomy of operation .
BUY DEFENSE BONDS
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"Bomb Tokyo" in Detroit
DETROIT- The No. 1 disc on the 5,000
phonogra phs in operation in Detroit today
is " Bomb Tokyo", a number specially writ-
ten and recorded for the United Music
Operators- Ass'n.
Record is being used as part of a " Bomb
Tokyo" Campaign sponsored jointly by the
operators and Hearst's Detroit Times, and
originated by Roy Small, Conciliator for
the Music Ass'n. who so successfully or-
ganized the "Any Bonds Today?" campaign
in Detroit a few months ago.
At a meeting in Convention Hall Feb.
21st songwriters Amherst Turner and Jim
Siracuse presen ted the number and 5,000
copies were distributed to musicmen for
use in the No.1 spot on their . phonographs
immediately. Through use of song it is
hoped sufficient patriotic ferver will be
aroused to demand an immediate reprisal
for Pearl Harbor.
Carl Pfanstiehl Passes
WAUKEGAN, ilL-Carl Pfanstiehl, in -
ventor and engineer, died March 1st at St.
Luke's hospital in Chicago following a
stroke. He was 54 years old.
During a crowded life Pfanstiehl was
granted 130 American and foreign patents
on electrical, chemical, radio, automotive,
and metallurgical inventions. For his work
in industrial research, he recei ved the
Modern Pioneer award of the National
Manufacturers' association in 1940. During
the last war he was engaged by the war and
medical departments to do special research.
At the time of his death Pfanstiehl was
vice president and director of research of
the Pfanstiehl Chemi'cal Co. who introduced
a new phonograph needle to the automatic
phonograph industry a few years back.
Surviving are his widow, two sons and
two daughters. Memorial services were
held March 3rd.
Carson Robison On Four More
NEW YORK- The guy with the enthu-
s iastic voice and fast-moving tongue, whose
"We're Going to Have to Slap the Dirty
Little Jap," scored a "sleeper" hit with its
release not too far back, has come through
with four tunes for RCA Victor.
Aided by the orchestra, Carson belabors
the Japs, Natz, and Fatsies in his original
"Mussolini's Letter to Hitler," " Hitler's Re-
ply to " Mussolini," " 1942 Turkey in the
Straw," and "'Here I Go to Tokio,' Said
Barnacle Bill, the Sailor."
In all four tunes, Carson fo ll ows th e
policy established in his first anti-axis rec-
ords and lambasts with words, tongue-lash.
ing and insinuation the tri-pact parties.
"The Yanks are on the march," says Carson,
"and we'll shove the yellow dog's nose in
the ground and turn his damper down."
D' E
c c
AII·Star
A
Records
- SEE IT TRRU IN '42
Mention of THE COIN MACHINE REVIEW is your best introduction to o u r advertisers.
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