Coin Machine Review (& Pacific ...)

Issue: 1949 June

JUNE, 1949
OFFICE OF PUBLICATION: 1115 Vnice Blvd., Los Angeles 15, Calif. Paul W . Blackford, Editor a■tl
P■bllsher: Walter W. Hurd, Executive Editor: Louis Karnofsky, Advertising Manager. Fitzroy B269.
CHICAGO OFFICE Ill : C . J. Anderson , 35 East Wacker Drive, CENtral 1·11 12: NEW YORK OFFICE
1171 : Ralph P. Mulligan, 441 Lexington Avenue, Murray HIii 2-5589. SUBSCRIPTION RATES: $5.00
for 2 years--mi■i111u111 term accepted: 50c per copy.
Local Taxing Powers Given Big Boost
BUSINESS REVIEW ... Legislation In 1949 Follows Usual
Pattern; Gain One Free-Play Law
Almost without exception these days,
operators connect their business with the
state of general conditions when asked how
thin gs are going. Operators to a man seem
to hold the view that general business has
slipped and hence the operating business
shares in this decline. A lot of heads of
business firms seem to feel the way opera-
tors do these days.
Reports and analyses of the first quarter
of the year have continued to pile up,
suggesting many views on what may be
expected during the year. Nearly half of
the year will be gone when this issue comes
from the press and it should be possible
now to get some good summaries on what
has happened this year- and what to
expect. But it is not easy at all to digest
and review all the differing reports. It may
help to jot down some general statements,
as follows:
1. General agreement exists in all sec-
tions of the country that general business
trends are definitely downward. Many say
the recession began last November; this
column has put the beginning with the
break in farm prices in Feb. 1948.
2. The recession thus far is mild, there
is no alarm, and everybody feels the adjust-
ment had to come. Business leaders do not
expect a depression. National income, busi-
ness volume, etc., are well above a year
ago. Many business leaders say industry in
general can drop 15 per cent from the peak
and still suffer no harm. Many firms are
adjusting to new conditions fairly easy.
3. The normal business cycle is said to
be working. The exception is that the
government will throw in heavy supports to
shorten the decline, start a new boom.
( See B USINESS REnEW, page 12)
Call
PR. 7351
For Coin-operated Equipment,
Parts and Supplies
by WALTER HURD
CHICAGO-At least 43 State Legislatures had some kind of bill relating
to coin-operated machines by May 1, after most of the state lawmaking bodies
had started on their sessions early in the year. Some of the legislative mills
really piied up with grist, while a few states like Rhode Island and Vermont
had only one such bill , according to available reports.
In previous issues this year, the legislative picture has usually been sum-
marized by saying that unfavorable laws were being proposed in good
number, and yet few of them seemed to be getting through into law. This
general statement has held true through four months of legislation.
At the same time, it appears that few laws of any kind relating to coin
machines have been passed. There were a number of favorable proposals
that have failed of passage also. There seemed to be a trend for licensing of
gaming devices in the Rocky Mountain area but most of the new license pro-
posals seemed to fai l.
The Review Calendar ...
June
June
June
June
June
June
June
IMPORTANT DATES
1-30 - Da iry Month .
12 - Children's Day.
12-18- National Flag Week .
13-20--Father and Son W ee k.
14 -Flag Day.
19 -Father's Day.
21 - First Day of Summer.
CONVENT/OHS
June 3-4 -NAMA, Re gions A and 3, annua l meet-
ing, Ritz-Carlton Hotel , Atlantic City.
N. J .
June 5-9 -National Confectione rs Assn ., 66th a n-
nual convention and 23rd exposition ,
Stevens Hotel , Chicago.
J un e 12-17-American Inventors Assn ., 1st Inte rna-
t iona l exposition, Grand Central Pa-
lace, New Yo rk.
June 22-25-National Assn . of Ta x Administrators,
17th annua l meeting, Lake Tahoe ,
Calif.
Jun e 26-29-Nationa l Candy Who lesa lers Assn .,
4th annual conv ention and all-confec-
Hotel ,
tionery
exposition,
Stevens
Chica go.
July 26-28-National Assn . of Music Merchants
(Retail), annual convention and ex-
hibit, Manhattan Center Exhibit Ha ll ,
New York.
Aug . 8-11 - International Apple Assn ., annual con-
venti on, Chicago .
Poul A. Laymon, Inc.
Oct. 24-26-National Assn . of Popcorn Ma nufa c-
1429-31 W. Pico
Los Angeles.
Nov. 27-30- National
Automatic
Merchandising
Assn., annual convention and exhibit
Atlantic City, N. J .
DISTRIBUTOR
turers ,
annual
convention ,
House, Chicago .
Oct. 24-29- lnt ernational Assn .
of
Ice
Pa lmer
Cream
Manufacturers, 45th annual convention 1
1
JUNE, 1949
Other favorable legislation that would
help vendors, such as unfair cigarette sales
acts, received a good i}earing in some states
and at least two states put such laws on
their books. The vending trade was wor-
ried about sales taxes and special pro-
posals to tax soft drinks, and there was one
proposal to make the sales tax include re-
ceipts from all coin machines.
Since practically all tax and regulation
proposals are considered unfavorable, the
list of legislation in this category is much
larger and much easier to define. I n some
cases, a bill ' migh t be . considered favorable
by one branch of the trade and unfavorable
by another grou p; a few such bills ap-
peared. Among the types of bills generally
considered unfavorable are the following:
1. Bills that put all types of coin-operated
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machines together for licensing and tax,
under one general heading. There are some
laws of this kind that have been in effect
for many years, and have worked well, such
as in Arkansas. But, generally th e trade
would prefer to have the main types of
machines covered in separate legislation.
2. Proposals to hike present license rates
excessively. The one fear is that, once a tax
is on the books, it will be raised by a suc-
ceeding legislature. Such proposals to hike
existing taxes showed up this year. A good
example again would be in Arkansas, with
a proposal to boost the fee from $5 to $25.
3. Possession laws on amusement and
gaming devices are considered as very un -
favorable, and one of the main reasons is
that the definition of gambling can always
be stretched so wide. Possession laws scare
locations also, and a few states had the
typical proposal this year to cancel business
licenses of places having gambling devices.
4. Proposals to tax vending machines at
so much per machine are considered im-
favorable. If a tax is proposed, it is much
I
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\\. :110:\THOSE A YE.
CII IC .-\(;O l I . I LL.
Hurd In East
Walter Hurd, nationally recog-
nized authority on coin-operated
vending, amusement and s.e rvice
devices, and executive editor on
the COIN MACHINE REVIEW, is
now on editorial assignments in
the East and Middle West for this
publication. Hurd left the Los
Angeles offices in late April and
will spend six months on various
assignments in the trade.
more acceptable to place a business li cense
fee on the operator. A number of vending
machine tax proposals of the per machine
kind appeared this year.
5. Spite bills are unfavorable in any
trade, of course, and th e coin machine
trade always gets a few. It may be some
retail group that gets a legislator to author
a bill that shows spi te for vending ma-
chines, etc. Some legislators still show
animosity to amusement games. But none
of the bills seemed to get very far this
year; mayb e th ey will cease .to be any real
threat. California probably had the highest
number of such bills.
6. Bills that propose to put very new
types of coin-operated machines under a
license or tax. Several such bills appeared
this year, relating to coin radios, shuffie-
board, etc. It goes without sayi ng that, in
time, any device that makes much headway
will be included for taxa tion-and should
pay its just share. But early taxation of
new devices may delay expansion of such
machines to become an established business.
The few laws that have been passed this
year relating to coin machines may be
considered minor, with the exception of th e
new statute in Arkansas which defines and
legalizes free plays. The free-play statute is
of major importance and has been de-
scribed in detail in an earlier issue. The
parade of new laws is not complete, how-
ever, until all the legislatures have ad-
journed and then the story can be told.
Hence, this review will be confined to a
look at trends in proposals as various bills
were introduced this year.
The purpose of this review is not to show
the number of bills that became law this
year, but to show the wide variety of bills
that appeared in th e many states. The bills
that actually became law in 1949 will be
reviewed later. The state-by-state listin g be-
low is not complete but it will show the
special types of tax proposals and regula-
tions that are in the mind of legislators:
Arizona-The state had a bill to license
salesboards at 3 per cent. Also, the second
state on the alph abetical roster had one
of those empowering act proposals which
would give cities and towns the right to
tax games and other amusements. These
empowering acts were an increasing trend
this year and may mean much troubl e later
with local tax proposals. Arizona also had
a bill to li cense "slot machines."
Arkansas-The Legislature made history
by passing th e first law to legalize free
plays, and also set precedent by lowering
its state cigarette tax. The state also had
bills to greatly in crease present license fees
on machines, and one that singled out
vendors for taxin g. A bill to li cense coin
radios at $7.50 also appeared.
Alabama- Legislature scheduled to be-
gin May 3, bu t no report on actions at this
time.
California-The state had so many un-
favorable legislative proposals that a sepa-
rate article would be required to describe
them. Vicious possession bills and bills
which define gambling on the "may-be-used-
for" basis appeared, and with pressure be-
hind them. Some of the sever.al cigarette
vendor tax proposals were also very threat-
ening. One bill would have taxed phonos
whether on location or not; tax rates of
$60 and $80, and even $150 per year, were
inserted in some of the bills. There were a
few bills considered favorable but in gen-
eral there was a heavy tone of unfavorable
proposals.
Colorado- Interest centered in the bill
to license gaming devices in the state.
Cigarette bills proposed a state tax, also
unfair sales control. An empowering act to
let towns and counties license gaming de-
vices also appeared.
Connecticut-A $100 tax on each game,
phono, candy and cigarette vending ma-
chine was proposed. Cigarette bills in-
cluded one defining an operator as one who
operated 25 machines or more, and a bill
to amend state tax on cigarette vendors.
D e laware-An empowering act for one
township in the state.
Florida-The Legislature had a pile of
bills early in April, in a state that licenses
machines-and once licensed gaming de-
vices. Present law fixes limits of any local
taxes on machines, but a bill appeared to
remove any limitations. Other bills included
one to tax radios, a license revocation pro-
posal for gaming devices, a bill to exempt
vendors dispensing citrus juices (follows up
the peanut exemption trend in Virginia and
the Carolinas).
Georgia-The bill to empower certain
counties to license and tax coin machines
got special attention.
Idaho-Considered as having a favorable
license plan for gaming devices in clubs,
the state had bills to undo this law, as
would be expected. Bills included proposals
of complete ban on gaming devices, local
option for citi es, proposals to require that
( See LEGISLATION, page 10)
STILL THE
FIRST CHOICE
OF EXPERIENCED OPERATORS!
ffloJ~rn
ELECTRIC SCOREBOARD
Manufactured by
MODERN AMUSEMENT CO.
2093 SANTA FE AVE., LONG BEACH, CAL.
PHONE: LONG BEACH 70-4072
COIN MACHINE REVIEW
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