The Ciuarette Machine Operator's
Place In American Life
by R. Z. Greene
Rowe Manufactur ing Company, I nc:.
history of automatic merchandising
T HE
of cigarettes in this country is an inspir-
ing American story of growth from a small
beginning. Although the industry was beset
by formidable obstacles from its inception,
it has grown into an important link in the
process of supplying the nation's consumers
with cigarettes.
Its economic need has been well estab-
lished and the industry as a whole has ma-
tured into the realm of big business_ Now
while we are engaged in the greatest war
the world has ever known, it is well for us
to turn back our thoughts to the past and
to consider our position at present to deter-
mine the operator's place in the American
life of the future.
The progress of cigarette machines has
been closely linked with increased cigar-
ette production. Statistics tell the story bet-
ter than anything else can_ Machines had
not yet made their appearance during the
last World War. In fact, they did not ap-
pear until 1925. Production of cigarettes
for that year was 82 billion. Both the cigar-
ette machi'ne industry and the production of
cigarettes began to move forward with huge
strides while the nation was in the throes
of a great depression. By 1935 the machines
became generally popular. Production of
cigarettes for that year totalled 140 billion.
In 1942 production was 216 billion, and is
expected to reach the stupendous figure of
more than 250 billion for 1943. Cigarette
machines wil1 participate in this immense
growth.
Today, out of an estimated million retail
outlets for cigarettes, about one-fifth, or
200,000, distribute their cigarettes to the
consumer through machines. More than ten .
per cent of the total cigarettes sales in this
country is handled by the machine method.
The success cigarette machines enjoy is
due to the initiative and ability of the
operators in getting them before the great-
est number of patrons. The fabulous growth
in Federal taxes may be partly ascribed to
the thorough manner in which machines
make cigarettes so conveniently accessible
in many outlets that are open long after
the regular stores are closed. Many owners
of restaurants, bars, grills, etc. look upon
the cigarette machine as an indispensable
adjunct to their business, equally as impor-
tant as the cash register. This type of re-
tailer has found that over-the-coun ter sale
of cigarettes usually represents a loss in-
stead of a profit, and will handle cigarettes
only through a machine. Cigarette manu-
facturers consider machines an important
complement to retail distribution.
Many seemingly insurmoun table obstacles
were encountered before operators achieved
their present success. There was consider-
able opposition to cigarette machines hom
retailers and wholesalers alike who believed
that machines were injurious to their busi·
ness. This has been largely overcome by
means of education in this modern method
of merchandising. Early machines were
poorly constructed and operators suffered
huge losses from slugs and robberies. Often,
machines fai led to func tion_ T hese difficul-
ties were overcome by progressive manu-
facturers.
In the beginning, machines were looked
upon as slot machines and the operators as
racketeers. Very few legislative bodies un-
derstood that selling cigarettes through a
machine is merely a me thod of merchandis-
ing. Some state legislatures and city coun-
cils passed prohibitive, punitive and confis-
catory tax measures relating to machines.
Leaders in the automatic merchandising
field realized that an organized effort on a
national basis was necessary to combat the
spread of restrictive and discriminatory
taxes. As a result, the National Automatic
Merchandising Association was organized in
1936 with seven members. Since that time
the membership has increased to more than
a hundred active and associa te members.
Very few objectionable tax measures have
been imposed on the industry since the Na-
tional Automatic Merchandising Associa-
tion came into being. It is an organization
worthy of the support of every operator.
In reviewing past difficulties, the restric-
tions whi ch the present war has inflicted
upon us do not seem so harsh. Loss of em-
ployees to enlistments, inductions and war
industries, rationing of cars, tires, gasoline,
shortage of repair parts, have required op-
erators to adjust plans, policies and prac-
tices to fit the kaleidoscopic changes which
war imposes. Many of these adjustments re-
quire frequent readjustment. Some are
temporary expedients that will last only for
the duration. Others may prove permanent
because they are found better than old es-
tablished customs and methods.
Most operators carryon their business
with a high degree of efficiency despite all
the hardships imposed upon them. Older
men, men with handicaps, and in some
cases women, are trained to meet the labor
shortage. Capacity of machines has been
increased, and additional machines placed
in many of the same locations to cut serv-
ice calls and save gas. Operators have con-
centrated their machines in smaller areas
and turned over to competitors locations tOI)
far removed from their headquarters, with
a view to complying with the rulings of the
Office of Defense Transportation, and other
applicable regulations.
With new machines not being produced,
with parts becoming more difficult to sc-
cure, the watch-word of the operator inso-
far as equipment is concerned is "eternal
vigilance". H e and his servicemen have
learned to make all minor repairs right on
the spot. More a ttention is given to keep-
ing the machine clean, bo th inside and out.
Operators generally have placed patriotism
above profits and have willingly and cheer-
f ully endeavored to adjust their operations
to the changing requiremen ts of the war
emergency. He performs a real service to
his community by making cigarettes con-
veniently accessible and ' by supplying a
prompt and unfailing service to many d~
fense plants, army post exchanges, naval
bases, commissaries, etc.
The war has taught us many things.
Some of us see in the present situation an
opportunity to correct and improve certain
practices and customs even though not actu-
ally compelled to do so. We no longer con-
sider our competitor an enemy, and have
learned that price wars are destructive to
all who engage in them_ In most cases cus-
tomers have been more than cooperative
and tolerant during these trying times to
the operator who maintained the right kind
of service prior to the war. The good opera-
tor is not taking advantage of that because
he knows there will be a day of reckoning
after the war. He is still conscious of the
fact that ours is a business of service and
unless we strive to maintain it on an effi-
cient basis, the busi ness must even tually
die.
We have been forced to learn how to
utilize men and equipment to the best ad-
vantage. We have gained the knowledge
that modern equipment is essential to 5UC-
cess. It has been demonstra ted that no
operator can realize the maximum potential
profit from his territory with inferior ma-
chines. All in all, we have learned that
ours is a good business, a business that
prospered during depressions and will sur-
vive all of the hardships of war years.
Although victory is not just around the
corner, we have to think of how the post-
war period will affect us. The increase in
cigarette consumption seems to have no
predictable limits and cigarette machines
will keep pace with this growth.
There is also no predictable limit to the
number and variety of things that might
be handled through automatic merchandis-
ing machines after this war. The possibili-
ties are literally boundless. New means of
transporta tion will enable the operator to
widen his scope. The horizons of opportu-
nity being opened by new industrial tech-
niques and new materials will be utilized
advantageously by progressive manufactur-
( See OPERATOR'S PLACE, Page 4 6)
HOME OF "TRUE VALUE BUYS"
We still have on hand the following brand new machines:
BALLY FOUR COIN MULTIPLES, P. O.
MILLS BELLS
BLUE FRONTS
GOLD CHROMES
BROWN FRONTS
Th ese are bra nd new and d irect from the facto ry and are not so-called recond itioned ,
rebu ilt. refin ished o r ove rhauled mach ines_
Over 500 Consoles. Free.Play, Pay.Outs and Convertibles
in Stoc:k for Immediate Delivery
W rite. telephone or wire your requirem e nts to us. Our used equ ipment must be see n
to be apprecia ted _ Any equipment purchased from us is guaranteed regardless 0;
price. If it is not th e finest you have ever purchased, return it to us for full refund
less freight charges.
See LEW LONDON
LEADER SALES COMPANY
131·133 North 5th Street, Reading, Penna.
PHONES: 4·3131, 4·3132. Nite: 6077
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JULY
1943