Coin Machine Review (& Pacific ...)

Issue: 1949 May

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LOS ANGELES 6
Phone: PArkway 3420
predicts it will bring in more money than
the one council passed.
About a dozen of the new 100-tune coin
phon os have been installed in the Akron dis-
trict_ So far, operators say they haven' t had
enough experience to determine whether the
wider selection will produce enough more
patronage to pay for the much higher cost
of the boxes_ They are demanding long-
term contracts with the tavern and store
keepers who in stall them_
The license fee for automatic record play-
ers in Wellston remains at $30 per machine
per year and will not be re duced to $15,
since city council fail ed to act on an ordi-
nance providing for the reduction_
Portsmouth City Council gave first read-
ing -to an anti-gambling Iflw which would
prohibit the exhibition of pin ball machines,
although they are not specifically named in
the proposed measure_ The ordinance as
drafted names slot machines and pun ch
boards specifically. Council voted 5 to 1 for
tbe ordinan ce on the first reading.
Toledo Council's Committee of the Whole
unanimously approved increasing the pin
ball machine fees from $100 a year to $175.
By the action , the city would get an esti-
mated $140,000 more in fees th an last year.
A special Council committee eliminated a
proposal to license vending machines. Coun-
cil approved the increases in city license
fees, including pin ball machines, shuffle-
boards and amusements. A reducti on in the
number of pin ball machines was predicted
because of the higher tax and the elimina-
tion April 1 of payoff devices.
The Ohio Department of Liquor Control
gave a conditi onal "green light" to shuffle-
board tournaments in taverns h aving state
liquor permits. Such tournaments are per-
missible, th e department ruled, " provided
the permit holder is not in any way con-
nected with the game outside of havin g it
played on his premises for a fee." Such a
plan would be simil ar to that of bowling
alley leagues. Enforcement officers s,aid tav-
ern operators may not charge entran ce fees
to shuffleboard tournaments nor give away
free meals and prizes. Potato chips and
pretzels are not considered as fo od.
In Columbus, shuffleboard seems to be
taking an increased hold a nd ap pears to be
doing well in co mp etition with the new tele-
vision station Y . n'ow in opera tion here. A re-
MAY, 1949
port is that some taverns elsewhere have
been doing such a thriving busin ess lately
that the taprooms which have television sets
are ripping them out. Customers, it was
said, drink more slowly when they're watch-
ing TV, Also television attracts non-drinkers
and light drinkers who elbow the heavy
spenders away from the bar. And, fina lly-
too' many arguments were encountered, it
was reported.
Warmer weather is helping beverage sales,
with more of the same being reported as
summer comes closer.
Stark County Common Pleas Court will
have to decide the problem of whether gum
machines, which intermittently dispense
trinkets are classed as gambling devices.
Harold F. Becker, head of the Automatic
Gum Sales of Akron, complained in a suit
fil ed in Common P leas Court that Canton
vice squad members had seized 16 of the
vending machines from stores and restau-
rants there. Becker asked for a temporary
and permanent restraining order to stop
police from confiscating his machines. Th e
trinkets, he said , were to boost sal es. Sales
from the gum machines had greatly in-
creased sin ce the trinkets were added, it
was said.
Thomas England, Newark , sued the Auto-
ma tic Canteen Co. of America for $1,586,-
777 under the federal anti-trust laws; 'He
declared in the suit, filed in U. S. District
Court here, that the Chicago firm sought
to monopolize the sale of candy through
vending machines. He said the company
had refu sed to renew his distributor license
because he bought ,·.andy from other sources.
England said he se'.ls candy, nuts and chew-
ing gum through 3744 vending machines in
27 ' central Ohio counties. He leases the
machin es from the Chicago firm.
William D. Bailey, sup ervisor of the ex-
cise section of the Ohio Department of Tax-
ation, reported that cigarette tax stamp
sales for th e month of March, were up
$98,860 over the previous year. Sales to-
taled $1,498,575, while for the correspond-
in g month- in 1948 sal es reached $1,399,725.
For the year to ..date, total sales were up
2.19 per cent. Sales of cigarette tax stamps
for the first three month s of 1949 were
$4,005,292, while for th e corres ponding pe-
ri od last year the sales totaled $3,919,196.
Most oth er vendin g machin es are about
normal, in cluding nut vendors, scales and
stamp machin es. A saturation point for th e
latter has been reached, the Better Business
Bureau reported .
C. A rthur&
- w.
1,0$
Jlngeles
General business is below normal and no
amount of fan cy phrases or soft-soapy phi-
losophy can alter that.
Th e music picture is a littl e hazy. A
good percentage of operators report that
the first hot days of April gave them a lift.
Other operators report drops of as much
as 15 per cent compared to December,
while returns from Long Beach , Wilming-
ton , San P edro and Torran ce continue low.
Oil workers and longshoremen, who com-
prise the main buying power in the sea-
port towns, haven' t full y r ecupera ted from
the oil and longshore strikes of several
months ago.
Live action, flipp ers and power bumpers
have brought many new pin game players
into the fold , as well as stimulatin g new
interest from the regulars, with the result
that gross has jumped 25 per cent.
Cigarettes are down as much as 20 per
ce nt, a nd it doesn' t take a crystal ball to
find out why. Two major chain drug stores
started a price war, cutting th e carton fig-
ure to $1.49. Then some of th e independ-
ents got into the fight and are now selling
at 15c per pack , $1.39 per car ton . Cigarettes
via machin e are vending at 20 cents. The
situation hasn't been helped by commission
chiselers who are not only giving locati ons
three cents and more per pack , but offering
bonuses for loca tions as well.
Lowered candy pri ces have given oper-
ators a new lease on profit. One of the big
suppl iers in town is offerin g all popular
bra nds a t $2.67 to $2.79 per hundred bars.
Stamp machines boomed high th e week
before Easter, giving opera tors a who pping
good April. Cup dispensers are movin g into
th e warm weather season with a cash box{
snap. P op corn machin es are still off, but
operators hope for a summer spurt. Pros-
pects are bright for scales inasmuch as th ey
have been steady all year and May heralds
the start of th e summ er scale season.
A shuffleboard opera tor with a lar ge route
clai ms that six months a go his boards were
41
here in the capital ci ty of the Inland Em-
tional by the State Supreme Court. It is
pire. After experiencing the worst winter
thought that the present one will hold up.
on record, it is no wonder that the snow-
Herbert D. Bodley, field representative
and-mud bound people of this region are
for the Washington State Tavern Assn. is
coming to the hub of this area to catch up
handling the present campaign to put the
on their shopping.
pin ball issue to a vote in the next general
election. Bodley is an old hand at this sort
Phonograph operators report slightly sub-
of thing and has shown his skill in many
normal business but say that better record-
cities of the state who faced similar diffi-
ings promise much better takes in the fu-
Shuflleboards are still the "big thing" in
culties. The Eastern Washington Amuse-
ture. A number of new machines are in
St. Louis, with operators reporting that de-
ment Assn. will back the action to the full-
evidence and several remodeling jobs have
mand still exceeds the supply. One operator
est extent.
been completed. Television, of course, is
reports that as many as 32 per week are
being studied and talked of as a possibili ty
Fred W. Lavell, widely known retired
sold through his company, and more could
in the not too distant future.
operator in the Pacific Northwest·, has re-
be disposed of if they could be obtained.
cently purchased the contract of Joey Velez.
Pin ball men are taking a beating since
The Rock-ala company is sponsoring a
Velez rates high in his class as one of the
the election, which went against them. How-
shuflleboard tournament, to be held in the
Pacific Coast's best fighters. Fred is taking
ever, dark as things may seem, there is
Coliseum in Chicago June 16 to 19. Both
up a former vocation which he is thor-
always a ray of hope on the horizon some
men and women will be represented in
oughly fam iliar with.
place. Inasmuch as the vote was advisory
single, double and 8-man teams, and a total
John L. Jacobs has recently purchased
to the city council, it doesn't close the door
of $15,000 in prizes will be awarded. Carl
the pin ball and phonograph route of Clin-
absolutely and steps / have been taken by
Trippe, of Ideal Novelty Co., has just re-
ton & Vogel. Johnny has been in the busi-
the Washington State Tavern Assn. to put
turned from a trip to Chicago, where the
ness many years, having started before the
the question to the people again at the
Rock-ala concern entertained with a lunch-
next general election two years hence. This
war with R. F. (Dick) Welcome.
eon at which all details of the tournament
-w. L. Ferrall
action has been taken after the City Com-
were explained. St. Louis teams will begin
missioners passed an ordinance against pin
playing April 5 to determine by process of
ball games of any kind and set April 28
elimination just which single, double and
as the deadline.
8-man teams will be sent to the Chicago
The blossoming of spring in mid-April in
The referendum petition will require in
tournament. The entire project will cost
this territory also revealed more smiles
the
neighborhood
of
5,000
signers,
checked
Rock-ala around $40,000, it is said.
blossoming on coinmen's faces as they pre-
with the city clerk on or before that date,
Walter Gummersheimer reports 'that a
pared to dig in for an uphill battle to cap-
to stop the ordinance from becoming effec-
new Pepsi-Cola dispensing ma,c hine is cre-
ture a maximum share of spring and sum-
tive. Whether this action will affect the
ating quite a sensation. This machine pro-
mer coin business available in this territory,
club situation regarding the operation of
vides a 6-ounce paper cup of Pepsi-Cola for
particularly in the resort sections once
bell machines is not known. Bells won out
five cents.
again.
in the private clubs by a good margin and
A new television set, in a fine leather
Business in general has been off from 10
were given the go-ahead by the city fathers.
case, with a 30 by 40 inch screen, which
to 25 per cent in most lines here and nat-
A great wave of shuflleboards have hit
shows 11 square feet of pictures is much
urally it has affected the Industry, particu-
the town since the Council set the zero hour
in demand by tavern owners.
larly in cafes and taverns whe.re it has hurt
the most during the winter months. How-
Coin machine operators report that opera- for pin ball games. Every tavern that can
possibly make room for one or even two
ever, the trade in general looks to a sharp
tions are again hitting their stride, after the
tables has done so. Many can not get one . rise in business during the next three to
decreases experienced Jor several. months
due to the frenzy created by the thought
four months.
during the winter.
of no pin balls to pay the rent.
Visitors to St. Louis were William Morris
Legislative matters have been preying on
Bottled beverage vendors are naturally
of Du Quoin, Ill.; Ray Bonnot, Jefferson
most Minnesota coinmen the past two
on the way up to the year's hot weather
City, Mo.; Louis O'Dorizzi, Staunton, Ill.;
months, as the Industry hasn't escaped ad-
peak. Candy in ' vendors is coming into a
Mr. Wells, Decatur, Ill.; Mr. Fielding,
verse legislation at the 1949 session of the
better season due to more people circulating
Springfield, Ill.; Ted Brinkman, Springfield,
Legislature any more than it did during
around places of amusement, etc.
Ill.; Jack Pierson, Madison, Ill.; and Clar-
the famous 1947 anti-gambling session
Cigarette vendor operators will shortly which outlawed pin balls in the state. Coin-
ence Kyneon, Springfield, Mo.
-Robert A. Latimer be faced with a 10 per cent tax increase men have had to be alert "watchdogs" this
due to the re-enactment of a soldier's bonus
year in the face of the need for more state
measure by the Legislature. The first bill
revenues and the threatened action by many
voted upon favorably by 'the people in the
legislators against this Industry.
last general election wa's ruled unconstitu-
Spring business as a whole has been good
No sooner had operators and distributors
recovered from the pleasant news of defeat
of the governor's cigarette tax and liquor
tax program-cigarettes would have been
hiked from 3 cents to 5 cents tax-than a
bill, which may pass in the final hours of
the Legislature, was introduced to tax
vending machines.
The bill affects soft drinks, candy and
cigarette vendors and would levy I-cent per
bottle or cup or package tax as well as
assess a $10 per year license fee on every
machine.
Vendors can't pass the tax or license fee
on to consumer either, under the bill's pro-
visions and the added cost would have to
ARE THEY VEND·SIZE FOR CLOG·PROOF OPERATION?
be absorbed by the operators, most likely.
ARE THEY FRENCH·FRIED· IN PURE COCOANUT OIL?
Coinmen and others affected naturally have
attacked the measure as discriminatory, as '
ARE THEY PROCESSED ACCORDING TO VENDING
it exempts sales of similar merchandise
MACHINE SPECIFICATIONS?
over the counter.
One operator said costs are already so
high, and he is working on such a small
margin, another penny added to expenses-
with no way of getting it back-would
practically mean ruin for his business. Bill's
authors said they got idea from a magazine
Let Us Prove It ... Send f or Free Samples Now
>.
article which told that vending machines
were not carrying their full share of tax
burden.
In addition, a 10 per cent gross earnings
tax on cigarette and candy vending machine
Oakland 19, Calif.
3021 38th Avenue
receipts is proposed, patterned after the -
Phone ANdover 1·9037
Cable Address: STASPECO
Michigan law of similar nature which nets
that state $1,000,000 annually. The tax
averaging $30 per week. Now, he says, th ey
have dropped to $15. Other operators place
the weekly average at $25. Most operators
are amazed at the way the boards continue
to pull in the coin in comparison to the
small vol ume of bar sales.
St.l.ouis
2'win Cities
Spokane
DON'T BE
SURE THERE ARE ALMONDS YOU CAN BUY
fOR 65c LB ....
8U1-
O NLY STANDARD'S VEND-SIZE ALMONDS
MEET ALLTHESEI REQUIREMENTS
STANDARD SPECIAL TV CO.
42
COIN MACHINE REVIEW

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