Coin Machine Review (& Pacific ...)

Issue: 1947 March

, .
A
PERRY WACHTEL
De Perri Adyertising Agency
JUUUS A. LEVY
DuG~er, Inc.
BEN SMITH
D e Perri Adyertising Agency
,;I
. tate Associations
. Problems in Na tional Meet
Officer~ ef~ ~ : t,;
CHICAGO-Shoul~t:MI form.a national tax council? What steps should
be taken to elimin~se ta es (Vl phonographs? Should a national asso·
Idistributors, or Ii' national association of associations
ciation of. operl\tors
be formed? _ In whar specific ways can CMI 'improve its service to operators,
distributors and man~facturers?
These and many other questions were subjects of a lively informal three-
hour session attended by presidents and executives of state and local trade
associations on February 3.
why we started CM!. It's time to insure the
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eolN
MACHINE
.£VIM
16
FOR
MARCH
future of this Industry, which is an integral
Dave Gottlieb, president of CMI, opened
the program wit!I these remarks: "I have • part of all industry."
watched the annual convention grow from
James T. Mangan, director of CMrs Pub·
15 booths in the Northern Hotel to the pres-
lic Relations Bureau, followed Gottlieb to
ent gigantic show. I have seen this Industry
the speaker's dais and told the group that
grow from a 25 million dollar annual vol-
public relations was not just selling prod-
ume to 250 million dollars. It has grown in
ucts or selling the Industry-but much more
spite of our negligence. We've been lucky,
than that. He declared that there are other
but our luck may c'1TI out some day. That's
businesses which technically can be classi-
CLARENCE LOMMERIN
Viki"g Tool & M fied under the heading of ga~bling-such
as insurance or the stock exchange-but due
to a very effective public relations program
such businesses "have hypnotized themselves
to believe they are something they are not .
In order to reach an ideal of self-hypnotism
in our Industry, we need 10,000 operator .
associate members to make us invincible."
He defined public relations as activity
which creates respect of the public for the
industry, the product and the personnel. He
also announced that CMI is setting up three
principal divisions - music, vending, and
amusement-with a central means to guide
them.
Joseph Silverman, manager of Amusement
Machine Association of Philadelphia, placed
himself on record as favoring a national tax .
council. Colonel Choate, business manager
of the Alabama Music Operators' Associa-
tion, said that only 50 per cent of the oper-
ators in his territory were members and that
new operators were hurting both the asso-
ciation and fellow operators by using uneth-
ical practices. He favored a national organ-
ization of associations and a national tax
council.
1947
ASP E C I A L I ZE D C IR E D tT AND
FINANCING AGENCY FOR MANU·
FAC TU'RERS AND DISTRIBUTO'RS
O F COIN ;. OPERATED MACHINES

134 NOR TH LA SALLE STREET
/
717 MARKET ST .• SAN FRANCISCO. CALIF.

CHICAGO 2

ILLINOIS
tJ
CONSTRUCnON BLDG •• DALLAS. TEXAS

'.
Did We Miss
YOU ?
~'hen,
By G,o lly,
You'll Be
Number J
At Next Year's
IRV GOLDSTEIN
DAVE BOND
Automatic Book V mdin.g Machine
Trimount Coin Machine Co.
Cori'.- -'
George A. Miller, president and business
manager of the California Music Operators'
Association, declared that in the past 12
years 74 tax bills have been introduced in
the state legislature and that his association
was successful in defeating everyone of
them. "Our association does not go out to
seek new members; instead, prospective
members come to us. Our group has joined
the Tavern Owners' Association so we can
discuss mutual problems. If CMI will watch
the tax situation and try to keep the levies
regulated at a reasonable level; if CMI will
also try to get rid of the excise tax-we can
take care of the rest."
E. Jay Bullock, managing director and
secretary-treasurer of Southern California
Automatic Music Operators' Association,
said that he felt like a child among adults
because his group was only four months old.
"However, we have made tremendous strides
in that time. We now have 150 members,
with three or four new ones coming in each
day. ,Every location of every member is
listed with the association and the union.
The association also circularizes locations as
a part of our public relations program. I
recommend that CMI form a national asso·
ciation of organizations to exchange ideas
and get licenses and taxation uniform. Th ere
is weight in numbers."
Joseph Brilliant, president of Michigan
Automatic Phonograph Owners' Association,
said that operators are not able to make a
good return on their investment. "If the
manufacturer can curtail production, com-
petition will take care of the price prob-
lem. The cost of equipment is irrelevant
anyway; the important point is that the life
of the equipment-without requiring re-
placement because of new models-is of suf-
ficient length for the operator to realize a
good profit. Factories should find out how
much new equipment an operator can stand,
curtail production accordingly, and pick dis.
tributors with care."
The high cost of equipment, labor and
supplies' are not the main drawbacks to prof-
itable operation, according to Jack Cohen,
president of the Phonograph Merchants As-
sociation of Cleveland. "The trouble is that
CMI SHOW

¥ .
excessive excise taxes are passed to thcoPe\} , ., streets;" Griffith declared. He asked CMI to
ator, and he, in turn, cannot pass them to
make.an educational film s.tressing this fact,
the consumer nor add them to the sales
and also asked for suggestIOns to help com-
price of the product. A man '~o operates ~ bat unfair charges being pinm;d on oper-
100 phonographs buys about 300 ew rec-
ators .. '
~ ,
ords a week which bear an excise tax of $10.
William L. King of the Phonograph Oper-
When an· operator buys new macchines, ex-
ators ASliOciation of Eastern Pennsylvania,
cise tax is $50 per machine. And then there
in offering a solution to the problem, sug-
gested sponsoring juveni~e ,_dances once a
is the $10 yearly Federal location Ulx which
is invariably paid by the operator o'r taken
week and loaning. ma<;hines f r these par-
off the top. I urge CMI to take action with
ties. "This has been done su,~ssful1y in our
Congress regarding this matter."
territory," he said.
In order to discourage locations from buy-
With reference to educational movies,
ing their own machines, members of Wis-
James Mangan agreed that it was a good
consin Phonograph Operators', Association
idea but that the price of sound film-$SO,-
will not service a location-owned machine,
000 for a 20-minute movie-was too steep
but instead, refers the proprietor to the man
for CMI's currently limited budget. "Our
who sold it to him. C. S. Pierce, president,
ultimate aim is to make a movie divided
was the speaker.
into three sections - music, vending and
Evan Griffith, president of Washington
amusement-which can be used i~ behalf of
Coin Machine Association, brought up the
each operator of eac~ type of eqUIpment. In
juvenile problem and how certain unin-
other w?rds, t~e mUSIC man ~ould run only
formed groups are charging that machines
the musIC sectIOn of the film.
are contributory factors to delinquency. "On
Sidney Levin, attorney for the Automatic
the contrary, they help keep the kids off the
Music Operators' Ass,;ciation of New York
SHOW
CIRL
SETTING THE
TREND FOR 19471
*
EVERY BALL A
POTENTIAL WIN'NER!
*E,VERY SHOT
FULL OF ACTION!
*
EVERY MOMENT
FULL OF SUSPENSE!
• •
TRULY DIFFER.ENT!
Arcade Equipment
RllY GUNS
or CONSOLES?
PAUL
IIAIUFACTUIII'
C'.PAIr
.
n. LAYMON
DISTRIBUTOR
REVIEW
17
FOR
MARCH
1947
SHOW CIRL.
-SEE~
CO,"
MACH""
Order From Your
Distributor or Jobber
161 W. HURON ST.
CHICAGO 8, ILLINOIS
MEMBER eMI

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