COLUMBIA BELLS
NEW-.MPROVED-J946 MODELS
IMMEDIATE DELIVERY
Fresh off the production lines - featuring an array of new
mechanical improvements - comes the famous COLUMBIA
TWIN JACKPOT BELL!
These new, improved 1946 models in dazzling, durable
Hammerloid finish are changeable right on location to
1-S-1O-2Sc play ; hence, you get the service of four
machines for the price of one ... plus double slug protection!
COLUMBIA makes more money f-a-s-t-e-r-costs less
money to own.
OPERATOR'S PRICE
5132 50 FOB
Chicago, III.
COIN
MACHINE
II"'EW
16
FOil
MARCH
7946
All orders must be accompanied by a one-third deposit,
postal money order or certified check, balance C.O.D.
GROETCHEN TOOL COMPANY
RANdolph 2807
126 N. Union Ave., Chicago, III.
government by February 1, 1946, their
"Income Tax Returns on Withholding Re-
ceipts," Form W-2. For the calendar year
1945 and thereafter, payments to employees
amounting to $500.00 or more must be
reported, whether or not all of such pay-
ment constitutes taxable income. For ex-
ample, if the total payment to an employee
for the year 1945 amounted to $800.00
and $600.00 thereof representeu wages
subject to withholding and the remaining
$200.00 represented compensation not sub-
ject to withholding-such as regularly paid,
flat expense accounts-the $600.00 should
have been reported on Form W·2 and the
$200.00 on Form 1099. If, however, that
$200.00 represented reimbursements made
to the employee at irregular periods, the
employer is not required to show the
amount on Form W-2, nor is tax payable
on the amount.
Here is another important point that will
apply to many operators and result in con-
siderable savings in income tax. Many
operators have considered profit as regular
income, which takes a higher tax. However,
the profit from the sale of a business or
part of a business, route, location or ma-
chine is to be considered as "Capital
Gain."
If any such items are held for more
than six months, then only 50 per cent of
said gain or profit is held subject to in-
come tax. Under any condition, the tax
cannot amount to more than 25 per cent.
If the operator wishes to take advantage
of the capital gain provision, he should
ear·mark the equipment on his records at
time of purchase. When such equipment
is sold, he will show such information on
Schedule D (Form 1040). The equipment,
location or business must be more than
six months old. The information required
on Schedule D for each item is: kind of
property; date acquired; date sold; gross
sales price; cost or other basis; expense
of sale and cost of improvements subse-
auent to acquisi tion; depreciation allowed,
or allowable; I!ain or loss. With this infor-
mation marked on records, it is a relatively
.imple matter to transfer it to Schedule
D and figure at the time of tax computa-
tion the gain or loss to be taken into
account.
It was found several vears ago that many
"nerators wen" paying excessive taxes large-
ly because of incomplete and faulty rec-
ords. The two 8" x 5" index cards repro-
duced on page 15 were designed to cor-
rect this condition. So ~"rcessfu]1v have
thev bepn u~ed that the Associatf'd Oper-
ator~ of Los Angeles County, Inc. will
gladly explain the system to other opera·
t"rs' Bsso(';atiClns thro,,'!hout the f'''untrv.
More rletailpd information can b p obtained
from Sunshine & Co. One set of f'~Tds i.
(Clr infnrmatinn ref'ardin'! each piece of
e".,!ipment, while the othpr provides for
all necessary information for equipment on
location.
The cards have hinges so that they can
be locked in Aat, steel trAYS which in turn
"rp filpd in rahinet. holdin,! from 525 to
975 cards. The cards can be nnickly lo-
cated and drawn from the c~binet, and
nostinp'S can be made without removing
the index cards from the tray. For smaller
nperators there are several types of book
fnrm Ternrd holder~ with rapacity of from
flO to ]20 cards. The cabinets are manu·
f"rlured by Yawman and Erbe Manufac-
turing Co. and may be purchased at reas-
onable prices through the Associated Oper-
ators of Los Angeles County, Inc., 1351
W. Washington Blvd., Los Angeles.
Right now is an excellent time for oper-
ators to resolve that next year their in·
come tax worries will be reduced to a
mInImum. In view of the complicated
income tax regulations that are being
issued daily, the first step toward that
objective is to retain an accountant expe·
rienced in the coin machine industry who
can advise operators as a group on tax
matters. The second slep is the establish-
ment of an accurate and complete record
of each piece of equipment.
Operators throughout the country will
save many thousands of dollars in the
corning year by taking this advice to heart
and doing something about it now.
(A subsequent issue 0/ TilE REVIEW
will carry a discussion 0/ the buyer's and
seller's problem 0/ goodwill and deprecia-
tion 0/ equipment, and capital gains and
losses arising from purchase and sale 0/
complete routes.-Ed.)
Prolific Designer
CHICAGO-Nearly all the famous N~
York designers have de,signed a coin-op-
erated vending machine ' or two. Among
them are Norman Bel Geddes, Raymond
Loewy, and John Vassos. But the most pro-
lific coin-operated machine designer of
them all is to be found right here in Chi-
cago, the center of coin machine manufac-
turing. He is Everett Eckland, of Mangan
& Eckland, who has designed over 350 auto-
matic venders. His partner, Jim Mangan,
estimates that Eckland designed coin-oper-
ated machines have taken in at least $20,-
000,000,000.00 (twenty billion) over two
decades of operation.
Meter Inventor Dies
NEW YORK-Carl Magee, inventor of
the parking meter, died recently in Okla-
homa City after a long illness, Magee,
also a newspaperman and lawyer, was 73
years of age.