Coin Machine Review (& Pacific ...)

Issue: 1949 March

CONGRATULATIONS TO WESTERN MANUFACTURERS!
By Harry E. Williams
President, Coin Machine Institute
Each passing year I notice with great interest the
ever increasing growth of industry on the West Coast.
Going through the pages of the Coin Machine Review.
it is very interesting to see the increasing number of
We st Coast manufacturers. This is one of the very
optimistic signs of the Industry. At a time when some
might say the Industry ,will stop growing. western
manufacturers are definitely expanding in number.
It is very appropriate that this spirit of invention and
growth . be recognized. and that trade members in all
parts of the country come to appreciate what the trade
in a group of several important states are doing to
keep the whole business forging ahead. The business
is going ahead and the west,e rn states are helping it
to do that very thing.
The West Coast has produced many original ideas
and inventions that have made the Coin Machine In-
dustry as great as it is today. These inventions are a
part of the heritage of the trade. and are too numerous
for me to try to mention. More gifted writers can tell
the story as it should be told. I know personally of
many of the contributions, and every operator through-
out the land no doubt is well aware of the ideas that
have originated in the West to be used by op erators
over the nation. It w ould be interesting to know. if a
count could be made. how many operators in all the
states are using some machines that are the outcome
of western developments. or maybe manufactured in
the western area right now.
Our Industry thrives on invention and aggressiveness
and that ·is why we need to pay our respects to it.
wherever the spirit of progress happens to be at work.
Your business and my business depends on a success-
ful and continuous flow of new ideas. new firms and
new aggressiveness. That is why western manufac-
turers mean so much to the Industry and why they are
to be congratulated on their good spirit in these times.
The business world has its eyes on the West Coast
and the gigantic development in business and indus-
try that has taken place there in recent years. The
rapid gains in population show that many people are
thinking of the future that lies ahead in that territory.
A lot of people. factories and industries are moving in
that direction and a lot more will als.o go that way.
While all this growth is taking place, the manufac-
ture of coin machines. the invention of new machines.
and the operation of machines will expand right along
with the industrial expansion. And it will all make
our Industry bigger and more profitable.
I'm glad of the opportunity to extend the greetings
of the Industry. through the Coin Machine Institute. to
western manufacturers and to congratulate them on
their activities. Many of them were exhibitors at the
1949 Coin Machine Show and helped to make it the
success that it was. The new ideas that were shown
by western firms were certainly proof that things are
being done in that area.
BUSINESS REVIEW
(Continued from Page 5)
Retail stores got a better start in the
first month of the year than had been
anticipated, and the reason given is that
lower prices brought in the trade.
This emphasizes the importance of the
present price trend, which is generally
downward. This is the trend that 90 per
cent of the people have been waiting for,
including coin machine operators almost
to a man. But the big problem still is how
to bring prices down without causing un-
employmen t. At present, a good job is
being done in gradually lowering th e price
level without causing sudden: upsets to
business.
".
But there are a lot of industries, a lot of
firms and millions of people who are feel·
ing a pinch. The experts say this leveling
off of business is likely to continue through
the year, and that the number of those
MARCH, 1949
I feel that our Industry is in its infancy. as inventions
and new ideas go. and that the years ahead will bring
still greater marvels in coin-operated devices. The
western manufacturers will help to s,e e that greater
ideas are forthcoming.
Even though our Industry has achieved a degree of
greatn e ss over the passing years. I feel it is still in its
infancy also in its Public Relations work. We may in-
v ent and build beUer machines and in greater numbers
in future years, but our progre ss from year to year will
depend more on doing a good public relations job. I
know western manufacturers will agree with that and
w ill be ready to help accomplish results.
W e. the Coin Machine Industry as a whole. have not
scratched the surface of good public relations. A good
many members feel that public relations begin at the
top among manufacturers and directors of CMI. They
are not exactly right. as public relations really start
with the man dealing with the public-the Operator.
The Operator sows the first seeds of impressions
about our Industry with the people he comes in con-
tact with each day. To recall a case in point. one
does not have to go back too many years to see what
' happened in Los Angeles wh en the question of coin
machines was put to a public vote.
The way that each operator conducts himself in his
business. in the eyes of the public. plays a very im-
portant part in public relations. and after the operator.
the dis,tributor and manufacturer. There is so very.
very much that has to be done all along the line to
beUer our public relations that I feel we are in our
infancy in this work.
In time, and following a set course which we are now
laying out at eMI. I believe we will have more open.
territory in which to operate our amusement machines.
We will have fewer proposals to tax music and mer-
chandise machines. and still fewer sueh proposals be-
coming law. We may even be able to get present
oppressive taxes removed in time.
All this won't happen overnight. as we have to insti-
tute a real educational program first. We have learned
a lot already but there is much more to be accom-
plished in the education of the trade membership in
the whys and ·w hats of public relations.
With me. this public relations idea is serious busi-
ness and I know that every operator. distributor and
manufacturer in the whole western area will give the
public relations cause their hearty support. When wes,t-
ern manufacturers give the trade new ideas they are
building up the trade that much. But there is also
much more to do. Every firm and every operator must
also help. carry the nationwide move toward a beUer
public relations program.
.
Hearty congratulations to all the manufacturers of
the West and may their growth and success keep right
on expandi~g from year to year.
who get pinched in th e process will in·
crease.
As mention.ed frequently in this column,
one of the most interesting reports on busi·
ness is the monthly survey of the National
Assn. of Purchasing Agents. Its report on
January caused a stir in manufacturing
circles. It said that manufacturing indus·
tries did not bound back in January from
the slump that came in November and De·
cember; manufacturers replied that a pick·
up 'never comes in January and February,
but usually begins in March. The report
said that price trends are generally down·
ward, except where higher freight rates are
an item.
Some business leaders say the spring and
early summer of the last two years have
been unusually trying and that this third
year may be the real test of how well the
country can "level off." The postwar busi·
ness boom has now come to a showdown,
many say; . others affirm that the peak
passed last year. Many reports say there
is an unfavorabl e psychology among lead-
ers.
With th ese general views on th e business
outlook, a digest of some of the specific
points in th e picture follows:
ALLOCATIONS - Congress extended
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For the next 30 days, with every
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Graham Anti-Cheat Assembly!
H. R. GRAHAM
203 East
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Feliz Blvd.
Glendale 5. Calif.
LOB
7
the voluntary agreements plan; government
agencies concerned with defense are in-
sisting more that stockpiling of strategic
materials take precedent over oivilian needs.
AUTO MOB ILES-Demand has slumped
and reliable reports from the large cities
say immediate delivery can be had on a
number of models of most makes of cars;
people in the auto trade predict that im-
mediate delivery on nearly all makes will
be the rule in another six months. The
auto trade is arguing the reasons for the
slump in demand, and a Wall Street Journal
survey turns up one good answer: "Cars
are just too darn expensive; prices will
just have to come down."
BANKS - Business loans dipped lower
in January than in any time in the previous
year and recovery in rate has been only
partial; demand deposits are below a month
ago, but well above the 1941 level; money
in circulation is showing a declining trend
-for the first time in ten years. Money
now turns over faster but total amount in
use is declining. Savings accounts tend to
. show some gains but people are spending
less freely.
B USINESS FIR MS - A seasonal rise
in new incorporations occurred in Decem-
ber, according to Dun & Bradstreet, but
the volume of new firms had continued for
12 months below that of a year ago. New
stock corporations reported in December
totaled 7,421; total for 1948 was 96,101. A
steady decline in rate of new firms has
taken place since 1946.
Business failures were showing a slight
decline in rate at the end of January; the
rate is well above that of the same period
in 1947 but still much below the prewar
rate. Steady climb of business failures is
given as big reason for tightening of credit;
collections are slowing. Failing firms are
said to leave few assets, since banks and
finance companies have been making loans
on accounts receivable.
A special review on credit in Business
Week magazine (Jan. 29) said that "sev-
eral areas report trouble in the vending
machine business." Apparently, this would
refer to the coin machine business as a
whole, and not to the vending machine
division alone. The candy trade is also
men tioned as among the sore spots in the
credit. situation.
EMP L O YMENT - Operators of vendors
will be concerned by. the official govern-
ment report that factory employment has
been declining since last ' September; post-
war peak of factory workers stood then at
16,700,000; auto industry is about the only
field to report recent increases in workers.
Nevada and New Mexico have shown the
highest ratio of gains in factory jobs since
1940; other states with a high ratio of in-
crease are Arizona, California, Kansas,
Minnesota, and Texas.
\
One reporting agency summarizes the
employment picture thus: work weeks are
shorter in many industries; unemployment
apparently is to go on rising slowly for a
time; layoffs are tending to spread; . new
jobs are opening more slowly; few indus-
tries are adding to pay rolls at this time;
many industries are cutting down here and
there in a small way; unemployment is not
expected to rise greatly.
EXPORTS-Government report on 1948
exports of coin machines was not available
in time for this review. Visitors from nine
or ten foreign countries, chiefly South
America, were present at the 1949 Coin
Machine Show, indicating there is still a
market abroad. Eight of the 20 countries
in S. A. had revolutions in the 'last year,
an unfavorable situation. Arizona firms are
increasing their trade across the border
with Mexico.
F R E I GHT - Increased freight rates' are
mentioned as one of the real obstacles in
the way of lowering prices. The U. S.
Supreme Court has agreed to hear an ap-
peal on the basing point freight rate policy,
and will thus hand down a second decision
on this touchy question. It was the high
court's decision in May a year ago that
touched off the subject.
The ICC recently turned down petition
of motor carriers for a regional freight in-
crease on small shipments. This greatly
pleased candy and cigarette trade.
Hearing dates on the railroads' petition
for a full 13 per cent increase in freight
rates have been set as follows: Washing-
ton, D. C., beginning March 1; Chicago,
March 14; Salt Lake City and Montgomery,
Ala., March 21; Oklahoma City and San
Francisco, March 28.
GAS OLINE - Demand for gasoline was
still rising in December and January, but
the oil industry had kept pace with de-
mand so well that talk of allocations has
been shelved. The average service station
price of gasoline was rising during Decem-
ber, the last official report available.
GO VER NMENT MO NEY-;-Recent cuts
in Navy forces caused a lot of business
firms to think about what .government
money means; approach of Income tax
deadline makes millions of ordinary citi-
zens think also. With the country now '
"leveling off" but trying to prevent depres-
sion, government money is playing a bi'g
part. As reported in our last issue, govern-
ment subsidy to business for materials and
supplies will run about $32,000,000,000 this
year, about $17,000,000,000 will be paid to
individuals, and parity support to farmers
will run about $2,000,000,000 for the next
two years.
The foreign aid program is shifting to
Asia, and will cost tax payers much more.
There is much fear at this time that the
Berlin blockade will be lifted, to remove
the enthusiasm from' our national defense
program.
MONEY - With prices tending to de-
cline, the experts are revaluing money.
Roughly, the dollar has gone up about one
cent in buying power since last August; in
that month the dollar bought 57.3 cents
worth of goods in terms of the 1939 dollar.
PROD UCTION - There seems to be
general agreement that factory output for
the nation has declined; how much is a
point in question. Supply channels in many
industries have been filled and demand is
slower. The big problem that comes to
every industry, and to each manufacturer
now, is how to adjust output to demand.
This is a sore spot in all business now and
is likely to be a tough problem for some
time.
Steel and automobile output will prob-
ably lead the parade of production this
year; the building industry is now showing
spotty trends and output of building ma-
terials is declining.
Operators of coin machines will be in-
terested in the problem of controlling pro-
duction to· prevent crashes in prices. For
example, the oil industry seriously consid-
ers limiting production in order to prevent
price competition. The whole price situa-
tion reacts quickly on factory output and
production, and much will be said pro and
con on the subject as industry after indus-
try is forced to adjust itself to demand this
year.
PROFIT S-Reports during recent weeks
have chiefly related to the profit and divi-
dend picture in 1948; annual reports of
corporations have been coming out fast to
provide information. One summary says big
OPERATORS ALL AGREE--
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Los Angeles 6 , Calif.
COIN MACHINE REVIEW

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