Coin Machine Review (& Pacific ...)

Issue: 1943 September

Suggested Plan for Establishing Proven Ownership
Brings Variety ·of"Comments and Suggestions
SECONQ. DISCUSSION
THE July issue of THE
a sug-
I N gested
for establishing the
R EVI EW
p~ ownership of co in-operated equipment was
briefl y outlined and readers were invited
to submit their views and any suggestions
or improvements they might have in mind
on the plan as outlined_
Under the suggested plan discussed the
manufacturer would issue a pink sli p on
each pi ece of equi pment, the possession of
whi ch would signify the hold er had paid
in full for the described equipment and
was free to sell or trade the machine as
he saw fit_ The pink slip would be on pro-
tected paper and bear the abbreviated
perforation of the issuing factory so coun-
terfeitin g would be impossi ble_
In the case of equi pment bein g pur-
chased on time payments a white slip
would be issued to the op erator showin g
th e name of the legal owner alon g with
that of the registered purchaser. When pay-
ments were completed the o perator woul d
exchange his white slip for the pink slip
and a new white slip showin g his name
as both registered and legal owner of the
equipment_ The white slip would be on the
machin e at all times and the pink slip
would be filed for safe keeping_
The system outlined closely parallels the
method of automobile registration in ' many
states and would prevent unethi cal in-
dividuals from buying equipm ent on a
small down payment and imm ediately trad-
ing it in on more expensive equi pment_
Then too it would serve to acquaint the
location own er with the true status of the
piece of equipment in his particular ~pot
and help him protect the op erator from
hi-j ackin g and theft_
Th e program, as outl ined, seemed to
please a grea t number of RE VI EW readers
imd one of the la rgest distributin g firms
on the Pacific slope wrote: " We have rea d
with interest the suggested plan for r egis-
tering coin-operated equipment_ While we
have never been par ti cularly favorabl e
towards the time payment plan on coin
machines, we realize that many sales are
made this way and with the post-war era
(when prices will continue to remain hi gh)
that there will be, of necess ity, many sales
made this way a nd your suggestion of fol-
lowing a plan similar to that now used
with automobiles is very tim ely and is no
doubt a step in the, right di rection _ We
shall follow with interest th e progress of
this plan a nd th e reaction of the other
memb ers of this Industry_"
Said on e of the foremost fa ctory rep-
resentatives in- the West: "In all the con-
tracts we carried up to 1942 invol vin g
many thousands of dollars th ere was not a
sin gle case of sellin g or tradin g mortgaged
equi pment. P ossibly since then new blood
comin g into the business may have set up
such a condition. If this has becom e a
general nuisance, I would say you have a
splendid plan for protectin g th e manuf ac-
turer, finan ce company or individual carry-
in g paper, and also protec tin g the hon est
op erator who might purchase mortgaged
equipment from a crooked operator. The
process would not have a lot of red tap e.
Just why the owner of a $400 phonograph
should not have to show a pink slip before
selling it, the same as th e fellow with an
automobile worth $400 or less, I don' t
know. Frankly, I never gave it a tho ught
until I rea d your a rti cle, but I'll say your
suggested pl an has pl enty of food for
thou ght."
On the ma nufacturer's sid e th e answers
follow a different vein of thou p; ht and on e
of our la rgest manufac turers of equipm ent
of various types wri tes : "Th e situation
as described in your article is more or less
a local problem and should be solved by
local jobbers and di stributors. Any plans
that might be worked out to b e used on a
national basis might be perfect for some
sec tions of the country, and entirely un-
satisfactory in others."
Most manufacturers feel the percentages
of such frauds as this system would elim-
in ate are exceptionally small compared
with the volume of business enjoyed by
the industry as a whole and tha t the bene-
fits derived from such a system would
hardly warrant manufacturers and dis-
tributors shouldering the added expense
that would be involved by the practical
a pplication of the system as suggested.
"The day may never come," reasons a
leadin g Texas distributor, " when it can
be said th e Coin Machine Indu stry h as
found th e perfect solution to the probl em
of proven own ership of coin-o perated equip-
ment, but the biggest bug-a-boo in this
respect is th e failure of some of us in that
we are often too eager to make a sale
and we sell to some fl y-by-night would-b e
op erator who does n' t give a damn about
the industry and its problems.
" He has heard there is a fortune to be
made in the operation of coin-controlled
equipment and without furth er knowledge
of the business he purchases equipment
with a small down payment and goes out to
make his fortun e. He soon find s he is not
doing so hot and decides to sell out. He
find s an operator who will take the equip-
ment off hi s hands fo r a cash consideration_
This new purchaser may be in another
state but the deal is made and no qu es-
tions a re asked. Soon the ori ginal sell er
find s he is not r ece ivin g his monthl y pay-
ments from th e time payme nt purchaser,
tri es to rou'nd him up and usuall y is un-
abl e to find eithe r th e individu al or the
ma chines_ Th e di stributor not only loses
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BOX 475
COIN
MACHINE
REVIEW
1115 Venice Blvd.
LOS ANGELES 15
CALIFORNIA
Mention of THE .COIN MACHINE REVIEW is your best introduction to our advertisers
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1943
money but a certain amount of prestige
with a legitimate operator in whose terri-
tory this incident occurred.
"The principle of too sinall a down
payment is directly the cause of this evil
together with the fact that the fly-by-night
operator should not have been sold equip-
ment in the first place. If distributors will
3tick to a strict policy of bigger down
payments this, in itself, will eliminate the
casual would-be operator for with a sub-
stantial down payment made on equipment
an operator feels he has enough invested
to make it necessary that he carry through.
The majority of legitimate operators know
this and have longed for the day when
distributors realize it is the best cure for
this evil.
"Many sales of equipment can now
either be converted into a cash sale or
at least a sale with a substantial down
payment if we, as salesmen, would only
ask for it. But we have in the past talked
easy time payments until some of our cus-
tomers are of the opinion we sell on terms
only.
.
"Here is a little story that illustrates our
point: In the deep South Negroes work
on large plantations for the land owner
as tenant farmers. During the year the
land owner advances groceries, tools, cloth-
ing and medicine from his own commissary
under an agreement whereby the Negro
reimburses the land owner when the crop
is marketed. Usually the tenant farmer
finds the sale price of the crop insufficient
to cover his indebtedness and must re-
main on the farm another year in an effort
to get out of debt. Such a thing hap-
pened to Mose b ut one year the land own-
er's bookkeeping system sprung a leak
and Mr. Jones found he owed Mose nine
dollars after the crop was sold. A day
later Jones saw Mose lugging a big sack
01£ potatoes out of a downtown store and
questioned him as to why, after all these
years of selling him groceries on credit,
he should go downtown and buy a sack
of potatoes for cash from a competitor.
'Why, Mr. Jones,' says Mose, 'I didn't
know you would sell for cash!'"
And so the opinions run- some in favor
of such a system--some opposed to it-
but none finding any real fault or sug-
gesting any improvements. Discussions will
continue in future issues and if you have
not already expressed yourself we shall be
happy to have your comments. All contribu-
tions will be prin ted anonymously unless
otherwise requested.
* * *
He had parked the car at the side of the
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BOX 515
COIN MACHINE REVIEW
1115 Venice Blvd.
Los Angeles 15, Cal.
in comparison with use of the set of tables
ordinarily furnished for figuring payroll
deductions, and that Deduct·O-Graph use
resulted in not only much greater speed
but positive accuracy as against slow, la-
borious figuring and a high percentage of
errors for the tabular method.
When asked regarding cost of the De-
. duct-O-Graph, Mr. May said, "You can-
not buy them at any price but the George
S. May Co. is giving them without charge
to any firm requesting them on a business
letterhead. The original print . order was
for 250,000 units but requests already in
sight will exhaust this first supply." Orders
should be addressed to the firm at 2600
North Shore Ave., Chicago.
New Chart Is Free
Not Gambling Devices
CHICAGO-Requests by the \ thousands
from industrial executives and payroll
desks are pouring into the George S. May
Co., Business Engineers, for that firm's
new device, called the "Deduct·O-Graph",
which automatically shows the proper pay-
roll tax deduction for any employee when
proper settings are made as to marital
status, wage range and pay period, George
S. May, President, announced recently.
Giving further particulars, May stated
that his engineers had started work on the
Deduct-O·Graph idea the moment deduc·
tion tables under the new pay-as-you-go
tax law were available from the Treasury
Department, and that the Treasury Depart-
ment has been responsible for the first
business requests for the device. He said
that before making any general announce-
ments regarding the Deduct-O-Graph, the
device had been tested by payroll officials
NEWARK-Judge Flannagan of Com-
mon Pleas has placed a new interpretation
on the New Jersey statutes in reference
to coin-operated machines being classified
as gambling devices.
Recently officers arrested a location owner
for possessing a slot machine and at the
same time attempted to seize an electrically
operated baseball game also on the prem-
ises. Location owner obtained a restraint
order.
Judge Flannagan ruled that the mere
presence of the machine in an establish·
ment did not make it a gambling device
any more so than a peanut vending ma-
chine upon which two individ uals 'c ould
wager a bet on the number of peanu ts to
be vended. He held that the insertion of a
coin by a customer represented a free act
on the customer's part and not an act of
gambling for no chance of getting his
money back or a sum of money back was
apparent and the individual invested his
coin for amusement only.
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Mention of THE COIN MACHiNE REVIEW is your best introduction to our advertisers

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