Coin Machine Review (& Pacific ...)

Issue: 1949 March

Demand lor Electro
Continues at Fast Pace
HOLL YWOOD - With d e mand for
Electro continuing unabated, Al Weymouth.
head of Weymouth Service Co., reveals that
there are two general types of locations
spearheading the constantly expanding
market: one is the location not having
sufficient space for an upright; the other
is the high type of location requiring its
cigarette machine to fit in with the rest of
the furnishings.
"Electro, with its exclusive console si~e
and smart new type of baked-on wood gram
finish, fills the bill perfectly," Weymouth
said, "and consequently more and more
operators are buying Electros today."
Weymouth further points out that C-8
Laboratories are the only cigarette mllchine
manufacturer which constantly subjects the
vital parts of the machine to rigid perform-
ance tests. Specially designed testing ma-
chines operate each part longer than the
part would normally be operated during the
life-time of the vendor, thus assdring long
years of trouble-free service from every
mechanism.
Operators in Southern California and
Arizona are getting prompt personal atten-
tion from Weymouth, who travels the terri-
tory ex tensively.
Ice Cream Biz Needs Vendors '
WASHINGTON-Th e ice cream industry
feels the need of vending machines to boost
sales more than ever, now that official re-
ports on 1948 total production have been
made available. The output last year
showed a decline of 10 per cen t from the
previous year.
But output last year was running about
13 per cent above the five-year average
for the industry. However, the downward
trend in ice cream sales has not yet been
checked. The months of J anuary and Oc-
tober last year had the biggest drop from
the same months in 1947.
Pi'es Up On Cigllrelle
Brllnd'Bllllle Among Lellders
DIIIII
NEW YORK - Another national survey
on cigarette brand sales is now available
to show what happened in the competitive
brand battle last ye.ar. The latest release
is a survey, by Prof. Charles W. Williams,
for Business Week magazine. The best
known survey is probably that of Harry
M, Wooten published in Printers' Ink each
year, and the one which caused an outcry
from the maker of Camels because it im-
plied that sales of the brand dropped about
4 per cent last year.
The new BW survey has Camels dropping
about 3 per cent in sales last year, from
the 1947 mark. The maker of Camels has
explained that production of the brand was
off last year but that sales made a good
gain over 1947.
All of the surveys seem to give special
mention to Philip Morris for the excellent
showing of this brand last year-chalking
up a gain of 23 per cent in the BW survey
over 1947 sales.
In THE REVIEW survey of opinion among
cigarette operators (published in the De-
cember issue, page' 38), it was stated that
operators often mention Philip Morris as
showing good gains in their territories.
Th e brand was most often mentioned as
making the biggest gains in most territories
during last year, the up-and- coming brand
for the year-although many operators said
they did not believe there is an up-and-
coming brand for cigarette machine sales.
Official government reports on 1948 out·
put are also available, showin g that total
for th e year was 348,730,092,913 units, based
on tax reports. This was a percentage gain
BJlBGJlIN SJlI,E
USED CICARETTE MACHINES
All machines have been thoroughly overhauled by trained Rowe servicemen, are
in top mechanical condition and excellent appearance.
Ready for Loca,ion
$60.00
8 Col. Rowe Imperials
85.00
8 Col. Rowe Royals -
10 Col. Rowe Royals -
85.00
F.O.B. los Angeles
ROWE SERVICE CO.
2620 So. Hill St.
MARCH, 1949
Phone P'Rospect 3228
Los Angeles 7, Calif.
of 3.8 per cent over 1947 but was a de-
cided drop from the 385 billion or more
cigarettes that had been predicted by . the
experts as the probable ou tput figure.
Even though the prediction~ were above
the mark, it was still the ninth successive
year in which smokers have increased the
total national consumption of cigarettes.
Population increases account for some of
th is annual gain and the percentage of
smokers among the total population is also
gaining.
.
But the surveys on smoking are always
raising some questions about who smokes
and why. Argosy magazine had a survey
made to determine what percentage of peo-
ple smoke cigarettes and cigars in the vari-
ous territories, and the check revealed that
the Pacific. Coast and Mountain states had
the smallest percentage of smokers in the
total population-and it is the Pacific Coast
area that has shown the largest gains in
population since 1940. Much of the in-
crease in population in this area has been
migrants from other areas, so the question
is raised whether it is the non-smokers that
are doing most of the migrating.
Operators in the Pacific Coast and Moun-
tain states might remembeF that th ey do
business in territory which has th e lowest
percentage of smokers among the total
number of people. A more detailed study
of the territorial variations in cigarette use
was published in THE REVIEW, December.
page 55. This study showed per capita use
of cigarettes on the decline in Washin gton
and New Mexico but on the increase in
Montana and Nevada, as indicated by state
cigarette tax collection s.
To return to the BW survey, the. percent-
age gains in sales of the various brands in
1948,' as compared with 1947, are as fol-
lows:
per cent
0.5
Camel ___ ______ ___ ____ __ ____ 3.0 (loss)
Chesterfield __ ____ __ ____ 5.7
Philip Morris ___ _______ 2 3.9
Old Gold ______ ___ ______ _ 9.6
Pall Mall ________ ______ ____ 17.5
'Kool ______ __ __ ______ --------- 30.0
Tareyton ____ _______ ___ ____ 25;0
.
All of the surveys seem to agree in giving
Philip Morris the credit for making the
biggest gain in the brand race, and then
Chesterfields rank next in making gains.
Men tion is frequently made of the Philip
Morris advertising th eme last year which
stressed the "no cigarette hangover" idea.
The statistics on sales would suggest that
smokers are giving heed to th e advertising.
Lucky Strike _________ ___
41
Among the lesser brands, Pall Mall,
Tareyton and Kools get special mention,
lasr year having been a banner one for
them ; Kools apparently made the biggest
percentage gain.
The final conclusion, from all the statis·
tics, is that 1948 was a very successful year
in cigarette sales. The gains were made in
spite of a price increase over th e nation
which many feared would slow up national
consumption. In many territories the price
increase enabled cigarette operators to ad·
just profit margins to costs by increasing
the retail price by two cents. But keep in
mind that in' some states total cigarette
sales were showing a decline during the
last two years.
The new year started off with more at·
tention being paid to taxes on cigarettes
than to sales. Both retailers and opera tors
regarded a decline in cigarette sales in
January as the norm al result of big carton
sales during the holidays. So many states
already collect a tax on cigarettes that it
had been generally expected the rest of the
48 states would add such a tax this year,
or at least battle over such proposals. But
January reports on legislation did not show
a rush to pass state taxes on the product.
Bills to tax cigarettes were reported in
California, Colorado and Michigan, but
these had been expected and it is also an-
ticipated a' bill will pass in these states. A
bill was introduced in the New Jersey
Legislature to repeal its cigarette tax which
went into effect last July l.
Congress may become the scene of big-
ger battles over cigarette taxes than the
states. There is a definite move, backed
by the big CIO labor group, to repeal fed-
eral taxes on cigarettes in the general move
to repeal all excise taxes. But leaders of
the union are not too hopeful th at cigarettes
will be freed this year. Tobacco trade
groups are also asking Congress to lower
the federal rate on th e dime brand ciga-
rettes. This plea has been made in previous
years and th ere is a better prospect that
something may be done about it th is year.
*
*
*
" He was quite a dude before he mar-
ried."
"Yeah, but now he's sub·dued."
REGIONAL REPORTS
(Continued from page 28)
ducing a total of $6,000,000 solely for the
pensioners and this total could be easily
doubled if all counties in the State would
follow the law. But as it is, many prosecut-
ors refuse to recognize the legality of- it.
It seems that a state law when duly passed '
.upon should be recognized by all counties
within the State.
As this is being written, another bill has
been introduced to increase the present
state tax on pin balls , from 20 to 40 per
cent. This would be the straw that breaks
the camel's back-if passed. Local op-
erators are paying 10 per cent to the city
on pin balls and 5 on club operated slots
in addition. Personally, I think I will start
raising rabbits.
The Spokane situation is getting hotter
by the minute, two council meetings hav-
ing been called on successive days. Latest
developments are that th e two issues be
placed on the ballot in the coming city
election. The two advisory questions deal
with bell machine and pin ball operations
separately and will not be mandatory, as
the question cannot be placed in a legal
position on the present ballot, owing to a
city charter rule that all propositions be
submitted within 45 days of an election.
It is felt that a vote would satisfy all con-
cerned. It is a very serious qu estion as
several million dollars are involved and sev-
eral hundred jobs are in jeopardy.
W. L. Ferrall
Twin Cities
Coinmen, many of whom have been
snowed or frozen in during past four to
six weeks with blizzard and IS-below tem-
perature conditions, nevertheless are un-
usually optimistic about the Industry's
prospect in this territory for balance of
1949, particularly after giving glowing re-
ports about "resurgence", "rejuvenation",
etc., obtained during the CMI convention
in Chicago.
.
Coinmen believe money, equipmen t, de-
mand have loosened with resultant busi-
ness upswing during the end of January
and throughout February, despite adverse
weather. Many are buying with an eye on
EXCEPTIONAL VALUES IN
USED CICARETTE MACHINES
NATIONAL
ROWE
9-30 Standard ______ __ _______________________
__ _____ ____ $ 65
9-30 Special __________________________ __ __ ___ ____ ___ ____ ___ ___ 75
9-50 Shift and no king ________________ __ ______ ____ __ __ __ 85
9-50 Special shift and king __ __ __ __ __ ________ __ ______ 95
9-A Shift and king ________ ____ _______________ _____________ 110
Imperial, 8 column _________________________ __ ____ __ __ __ $ 60
Royal, 8 column ______ _________________________________ __
85
Royal, 10 column____ _ ___________________
__ ____ __ ____ 85
President, 8 column
100
President, 10 column
__ __ __ __ __ 105
DuGRENIER
UNEEDA PAK
S Models, 7-column _______________ ____ _________________ $
W Models, no shifL__ ______________________
W D with shifL___________________ __ ______ _____
DuGrenier Champion S-11
55
65
75
95
Model E (trigger handle ) 6-9 column _____ __ _ $ 60
Red Knob, 8-9 column ______ __________ ______ ____ ________ 75
500 (cup delivery) shift and king, 9 col. 95
500 (cup delivery shift and king, 15 col. 100
STEWART McGUIRE
4 Column Model E ___ _________________ __ ____________ ________ $ 40
6 ~ol".mn ________ __ _
____ __ ____ 45
"
NOTE : On sales of five machines or mo re either of one model or a group of models, we will
allow a discou nt of $2.50 per machine. All sales are made on the basis that we guarantee
the mechanical cond ition and operation of each unit and the prices are F.O . B. Los Angeles
and terms cash .
.
WEYMOUTH SERVICE CO.
4955 Santa Monica Blvd.
42
Ph. OL. 1951
Hollywood 27, Calif.
,
anticipated high revenues this spring and
summer, particularly in the resort areas
upstate.
Of course, shuffleboard is the biggest
news here as elsewhere and operators and
distributors alike, a t first slow to catch
on to the new "business-saver," are clamor-
ing for equipment, information about the
game, and establishment of routes and ad-
ditional locations.
Shuffleboard is definitely in with a bang,
with demand driving distributors "virtually
crazy" as one put it. Archie LaBeau, La-
Beau Novelty, Rock-Ola distributor, said he
has been begging manufacturers for addi-
tional equipment to meet th e deman d. A
similar report comes from Lieberman Mu-
sic. also Rock-Ola line distributors. Th e
common voice is that th e game is the
greatest thing to happen to Industry in
years.
Shuffleboard, along with in creased music,
record and pin game busi ness, is keeping
many operators out in their territories for
weeks at a time. One operator hasn' t been
hom e in eight weeks, ano th er a month, busi-
ness is keeping them hopping so.
Shuffleboard, which has gone far beyond
expectations here, is definitely here to
stay. What is believed to be first exclusive
shuffleboard court in the nation, has opened
in the loop here with six shuffleboard
drives; court is operated like a bowling
alley and with city, county and state tourna-
ments planned.
Another, Shuffle-Inn, opened in north
Minneapolis by Irv Goldberg and Bill Lebo,
with three boards, one phono and six pin
games plus a snack bar. Place is drawing
heavy business, Irv and Bill report.
In general, the 1949 outlook is good as
business stabilizes itself, the trade believes;
1948 music and pin games held their own,
arcades were off but hope to recover mildly
this year while vending machine business
fairly struggled.
Record business is spurting, particularly
since the end of the Petrillo ban. Dealers
are hopeful on this end. During 1948, dis-
tributors reported, sale of music machines
largely confined to sale of used equipment
and a little new equipment, in spotty stage,
however. This is expected to change soon.
Business ge'nerally, is about even with a
year ago but shuffleboard, new music, new
equipment within price-reach, is expected
to boom business shortly.
It is evident operators are now looking
for new equipment, with increased interest
on all fronts for display of new music boxes
and pin games by distributors. Flippers
saved the pin game business last year and
shuffleboard is expected to aid immeasur-
ably in 1949, from location point of view
especially.
New legislation will be the major head-
ache of trad e here as elsewhere. Legisla-
tion aimed at barring minors entirely from
entering spots where pin games are dis-
played is anticipated, along with other
threatening legislation.
Arcade business hopes for resurgence
this year, after poor showing in 1948. Pop
corn is doing fine in theaters but elsewhere
only a few machines are avai lable or report
. - any sizable volume. New locations for
pop corn vendors may be the answer.
Soft drink beverage dispensing is getting
heavy play for cup vending hereabouts,
with additional locations springing up and
new types of equipment bowing in, to
brighten the picture this year along with
lowering of costs.
Candy is remaining steady but decline
in bar costs and chocolate will help th e
situation immeasurably, pl us the addition
(See REGIONAL REPORTS, page 45)
COIN MACHINE REVIEW

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