BOARD OF DIRECTORS
ASSOCIATED OPERATORS
MEMBER
OF
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TOM CATANA
LOS ANGELES COUNTY, INC.
VERN MOORE
FRED REILLY
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ROBINSON
of the United States
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(Incorporated 1937)
West Metropolitan
1351 W. Washington Blvd.
Chamber of Commerce
PRo 0231
Los Angeles 7, Calif.
"CURLEY"
Chamber of Commerce
•
"Proud of Past Accomplishments
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Los Angeles
Chamber of Commerce
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MANAGING DIRECTOR
,
Am. Trade Ass'n Execs.
Public Relation Bureau
Eager For The New Ones"
ROBINSON SUGGESTS '
COIN
MACHINE
REVIEW
14
FOR
MAY
1946
(Continued from Page 11)
be placed on the market at double and
more than double the prices of 1941. Not
only will the operator be compelled to pay
this greatly inflated price, but he will have
to continue to stand one-half of the fed-
eral tax. On top of aU this, is the undis-
puted fact that new games ' will in all
probability be released almost everY month
so that the condition existing in 1941 and
prior thereto, whereby games became
obsolete in six months time, will place a
further burden upon the operator. This
will mean that the operator will certa:inly
not be able to retrieve ' the cost price of
a machine before he is forced to buy a
new one, and in addition to the cost of
both the old and new machines, he is still
com pelled to pay $50.00 as his share of
the $100.00 tax levied by the U. S. Gov-
ernment.
"In a proper presentation of this matter
before the In,ternal Revenue Department,
a true and correct picture must be placed
before them, so that the Life and Earnings
capacity of these- two different categories
should, and must be, shown. Definitely,
there can be no comparison between Games
that offer Amusement Only, Regardless Of
Its Free Plays, and Games That Are
Automatic In Their Nature And Are Of A
Slot Machine Type And Are Most Defi-
nitely A Gaming Device.
"The !1riginal thought and intention of
Congress in making this law was a most
definite division between amusement de-
vices and gaming devices, and this must
be presented to them on this basis.
"Now the purpose of placing before you
these facts is, that we believe that Coin
Machine Industries, Inc., should commence
a campaign to have a proper interpreta-
tion of Section 3267 of the Internal Revenue
Code, whereby its original intent in 1941
is carried for and interpreted as the Con-
gressional Comrniitees intended when 'they
passed the original act; that is, a tax of
$10.00 on amusement, music and pin ball
machines (regardless of the manner in
which they are operated) and $100.00 on
automatic payout slot machines and/or
automatic payout gaming devices. To
place any other interpretation upon this
Section is to defeat the intent of the same.
The way it is now interpreted by the
Internal Revenue Bureau, the amount of
taxes varies according to the use the ma-
chine is put to; that is, if the machine
gives off nothing but free plays, then the
tax is $10.00, but if those free plays are
repurchased or redeemed by the merchants,
the tax is $100.00. That is nothing more
than a tax upon the use 0/ the machine
and not upon the physical characteristics
0/ the same. A concerted campaign on the
part of the C. M. I. would have the effect
of 'changing the present ludicrous interpre-
tation as evidenced by both House and
Ways Committee and the Senate Finance
Committee.
"This is a Program that must be won-
and a Program that must be backed 100
percent by the C. M. I. A basis will then
be established between the Operator and
the Manufacturers wherein the operators
would be fully cognizant of these facts,
i.e.; not only does the Manufacturer manu-
facture Games, but he, like other Manu-
facturers of Different Items, does his ut-
most to see that not OTily is his product
sold, but also that his product 4 kept sold
-that anything and everything pertaining
to his manufactured item is 0/ deep con-
cern to him-the continuance of the
games, the possibility 0/ the operator re-
maining in business, and that a full retail
merchandise cognizance is given to this
Industry by the Manufacturers of Games as
is given in every other industry by the
Manufacturers of other items. Emanating
from this will be a feeling of amiability,
cooperation, and faIth between the oper-
ator and the manufacturer. This is really
a public relations program of first getting
and then keeping our house_ in order."
C. M.I.
(Continued from Page 11)
Program. The report was enthusiastically
received by the manufacturers present, and
comments clearly indicated their generous
support of the Program when they are
called upon in the next few weeks.
The Secretary was authorized to contract
with Hotel Sherman for February 3 to 6
inclusive, 1947, for the next Annual Con-
vention and Coin Machine show. It will
take some time to prepare floor plans and
exhibit contrlttts. When they are ready the
Association will pursue their prewar policy
of offering exhibit space, first, to their mem-
bers; next, to non-members who have ex-
hibited in former shows, and then throw
the remainder open to any prospective ex-
hibitors.
The proposed changes in the By Laws
were adopted with scarcely a dissenting
vote.
The newly elected Directors met imme-
diately following the Annual meeting and
David
elected , the following Officers:
Gottlieb, President; R. W. (Dick) Hood.
Vice President; John Chrest, Treasurer;
James A. (Jim) Gilmore, Secretary.
Applications of the following coin oper-
ated machine manufacturers were voted
into Regular membership, increasing the
total number of Regular members to 44:
Bell-O-Matic Corp, Chicago; Coin-Arts.
Industries, Milwaukee; Amity Found~y and
Machine Company, Inc., Perth Amboy,
New Jersey.
* * *
When a man is old enough to know bet-
ter, expect the worse.
MORE 5c CANDY BARS
CANDY MACHINE OPERATORS. AT·
TENTIONI ManufaC:+urer of nation·
ally advertised 5c: bars wants to
add your name to mailin", list . You
will be notified immediately as more
c:andy bec:omes available. Write to-
day to
BOX 770
e-o Coin Machine Review
1115 Venic:e Blvd .• Los An",el.s 15. Cal .