Coin Machine Review (& Pacific ...)

Issue: 1949 July

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NORSOAMERICA
Approved by
Underwriters' Lab.
356 South Broadway
MAdison 6·3746
of layoffs in local railroad shops. The ef.
fect of this "holiday" is felt all along the
line, in many quarters where it would be
least expected.
The men who make their living with
phonographs and pin ball machines in
Akron can breathe easier again. City coun-
cil there did an about face on the ordinance
passed several weeks ago, putting a three
per cent amusement tax on coin-operated
amusement devices. They did this by ac-
cepting a report from the Taxes and As-
sessments Committee. The vote had the
effect of killing the bill previously passed.
Local phono operators are still serving
music for a nickel and business has been
fair, although much of the trade is now
moving outside for the summer. Nearby
Buckeye Lake and Norwood Park are be-
ginning to get much of the summer busi-
ness, especially weekends and holidays.
Portsmouth's new "anti-gambling" ordi-
nance went into effect, with city officials
declaring it will be enforced. The ordi-
nance covers bell machines, punch boards
and "free play" pin ball machines. Opera-
tors and distributors of bell machines,
punch boards and "free play" pin balls,
who function on a wholesale basis, have
been notified that they must remove their
machines in compliance with the new or-
dinance.
Chief puzzle in interpretation of the
new ordinance is likely to be the portion
covering pin ball machines. Those devices
which do not "payoff" with free games
are not illegal, but simply amusements.
Enforcement officers said it would be dif-
ficult to prove whether or not a pin ball
machine actually provides free games, since
this may be up to the proprietor in many
cases.
Nearby New Boston has introduced an
ordinance similar to Portsmouth's which
would prohibit the exhibition and use of
pin ball machines, bell machines and simi-
lar devices.
Demand for installation of shuffleboards
continues, but the city is pretty well cov-
ered now. Interest still continues to build
in the new game and some of the boards
are now standard equipment in many
amusement areas. As yet, your reporter
has not come in contact with any tourna-
ments.
Demand for soft drinks continues at a
high level. We have had much humid
weather and that usually creates more of
30
Los Angeles. Calif.
Cable Address: NOSOAM
a desire for them than the usual hot
weather. New drinks have been scarce in
making their appearance, while many of
the old ones are oftentimes hard to find.
One of the newer dispensers to show in
Columbus is an automatic coffee dispens-
ing machine.
Akron operators were stymied for 17
days recently when bottled deliveries of
cola were held up by a truck drivers' strike.
The wage dispute was finally resolved.
Many summer candies are making their
appearance as summer heat bears down.
Summer coatings are helping many brands,
but demand is off considerably from colder
weather.
The Ohio Cigarette Vendors Assn. was
formed here recently, with the group's 50
charter members electing Maurice Levitch,
general manager of the Stern Cigarette
Vending Machine Co., Norwood, as presi-
dent. Other ollicers elected are George
Flanagan, Dayton, first vice president;
George Golden, Cleveland, second vice
president; Allen Ziegler, Columbus, treas-
urer, and Leonard Stern, Columbus, secre-
tary.
Initial aim of the association, the officers
said, will be to protect the industry from
unfair legislation and improve the vending
machine business. The group plans a cam-
paign against the proposed three per cent
Ohio sales tax, as it would affect cigarettes.
William D. Bailey, supervisor of the ex-
cise section of the Ohio Department of
Taxation, reported that sales of cigarette
tax stamps for the month of May 1949
increased $11,649 over the same month
last year. In May of 1948 sales totaled
$1,475,378, while this year they reached
$1,487,027.
For the year to date, cigarette tax stamp
sales increased .91 per cent. Sales for the
five months of 1949 were $6,902,787, while
last year the total was $6,840,457.
Warm weather has put the silence on
many pop corn machines, although theaters
are still selling the product. Many loca-
tions are reporting slow business, however.
Penny scale operators are reporting a
slight upgrade in business, while two week-
ends which were holidays helped stamp
machine sales. Otherwise, most machines
are about the same as before.
Congratulations to THE COIN MACHINE
REVIEW upon the occasion of its 16th
birthday and may there be 16 more years
of excellent service to the cause of fur-
thering the Industry!
W. C. Arthurll
I.os Jlngeles
General business conditions during June
can best be termed "static." If there are
any pieces of equipment which are making
the operators heaps of money, your busi-
ness reporter hasn't heard about them yet.
As compared to the over-all business pic-
ture, however, coin machines are holding
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their own. With less people patronizIng
bars, taverns and restaurants, and with less
spending money and reduced industrial
employment, how can the coin machines in
these locations receive more than below·
normal play?
Music has been unsteady. One week
gross goes up; the next week it comes
down. But the smart music operator who
selects and merchandises his records care-
fully, keeps service costs down, and isn't
afraid to pull equipment out of spots losing
money, is still very much in the black.
While exceptional shuffleboard locations
are still grossing $70 and $80 per week,
the average is running around $30, which
still leaves margin for a profitable opera-
tion.
Cigarettes, candy, popcorn and beverage
machines are getting only fair play, and
while scales are below last year's figure on
a comparative basis, they are doing well
when present business trends are consid-
ered.
San Francisco
Bright rays of light in the Bay Area's
business picture are being beamed by bulk
machines, ice cream, scales, and shuffle-
board. While the latter has dropped to
an average $20 weekly net, this is con-
sidered excellent in view of the sparsely
populated bars and taverns.
The televising of all Coast League ball
games has made itself felt in music take,
which has not recovered from the low
point reached in May. Labor unrest, in-
dustrial layoffs, and generally poor busi-
ness conditions have hurt cigarette, candy
bar, coffee and soft drink machines.
Sf. Z.ouis
Shuffleboard sales continued to shine as
the bright new star on the coin machine
horizon in the St. Louis area, and many
operators, who are fortunate enough to
have locations alongside shuffleboard tables,
report a sharp pickup in collections. Typi-
cal operators have found that pin games,
phonographs and even vendors are profit-
ing sharply throullh drawing the attention
of shuffleboard devotees waiting their turn
at the boards.
The Missouri Amusement Machine Assn.
held a "quiet meeting" during the month,
during which little new business was
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LOS ANGELES 6, CALI F.
brought up. The reduction in new equip-
ment prices has been encouraging, and a
letter of thanks to agents helpful in bring-
ing down new machine costs has been sent
out. Plans for the annual summer outing
are in the making, according to veteran
executive Abe Jeffers.
Vending route operators report the usual
hot weather slump in candy sales, a bit
more serious for 1949 due to the exces-
sively early hot weather in May. Most
operators are removing machines not in
air conditioned spots, although a large
percentage report they will leave vending
equipment in place with candy bars suited
to the season.
Tobacco vendors report cigarette sales
holding their own, despite a price war
among chain stores in the suburban dis-
tricts which has brought cigarettes down
to 14 cents per pack in most instances.
There is a general trend toward use of
electrically operated equipment, and many
location owners are insisting upon them.
Another gratifying influence which is
stilling the plaints of operators over low
collections is the rise of packaged air con-
ditioning through St. Louis. Taverns, con-
fectioneries, smoke shops, billiard parlors,
retail stores, etc., are busily installing five
and ten ton cooling systems, to maintain
play or sales volume during the "dog days."
New pin games are being tested over
the routes, with Williams' products notice-
*
able in many locations. While shuffleboard
has caused a slight setback in most terri-
tories, the trend toward economy in en-
tertainment is causing many workers to
amuse themselves with pin ball time, rather
than expensive movies or an evening at the
tavern.
The St. Louis Shuffleboard Assn., com-
posed of distributors and operators, will
soon announce plans for tournaments, and
"student" promotion, designed to acquaint
more people with the sport. All plans are
in a formative phase, however, according
to Tom Collins, of Universal Distributing
Co.
Operators report that cola and orange
drink dispensing machines are showing ex-
cellent results. It was pointed out that a
machine, which would give the public
their choice of flavors, would be an ex-
cellent innovation in the field. The cola
drinks, as well as the orange drink, sell
at 5c per paper cupful.
The Table Shuffleboard Assn. held its
first conference in St. Louis the latter part
of June. In addition to setting up a stand-
ard set of rules, forming of men and women
teams, both singles and doubles, the pro-
motion of the sport as a national recrea-
tion, and other subjects was taken up at
the national conference meeting. Operators,
distributors, manufacturers and location
owners attended the meeting.
Robert A. Latimer
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365 Fifth Street
1. H. Strickler
Oakland 7, Calif.
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