Coin Machine Review (& Pacific ...)

Issue: 1949 May

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
would levy a $1 per machine fax eX'piring
in June of each year.
Within St. Paul, an ordinance requiring
$5 lIcense on each candy and bulk vendor
location is pending. Although applicable
to locations, many will not pay the fee,
claiming it &hould be paid by operators who
in turh claim business is too bad to stand it.
Commenting on the situation, LeRoy
Johnson, president of Minnesota Automatic
Merchandisers' Assn., said 1948 net operat·
ing profits were only 1.8 per cent while as
of February 15 business was down 14.5
per cent over last year and March sales
are nearly 25 per cent off from March 1948.
Also in St. Paul, an ordinance to license
shuffleboard and bar its playing by minors
has been introduced in the ' city council.
It would impose a $50 annual location Ii·
cense, plus a $5 fee on each shuffleboard.
Ordinance would establish same license reg·
ulations on shuffleboard as on pin ball ma-
chines and if owner already has a location
license he would be assessed only the $5
per machine fee.
Au tomatic phonograph business is pick-
ing up gradually and the first quarter of
the year fared nearly as well as a like
period of a year ago. However, amusement'
games, with exception of shuffleboard, are'
getting only fair play, but the resort season
opening will bolster this substantially, most
operators and locations feel.
Beverage vendors, cup variety in particu-
lar, have fallen off and the answer seems
to be new types of equipment as well as
locations, according to operators and soft
drink firms.
Shuffleboard activity continues to grow in
this area, after getting off to a slow start,
and is taking hold by operators and public
alike in fine fashion. Many locations are
getting heavy play, but frequently to detri-
ment of other coin devices, except music.
Television in taverns, bars and public
places is dying in this area and the threat-
ened competition no longer disturbs coin-
men who are now taking hold of a coin
TV machine for operation soon in this area.
Vending operations have steadily declined
during first three months, but are climbing
slowly back up and the cost-price squeeze
is easing up.
-N. F . W ood
Washinglon, D. C.
General business in the nation's capital
has been slow, with Commerce Department
and Board of Trade generally agreeing re-
ceipts are running about 5 per cent below
last year. Miserable weather cut down the
throngs who were expected to visit the
Cherry Blossoms, and the summer tourist
rush is still a ways off. Summer, however,
should be good. Several hundred conven-
tions have been booked by the Board of
Trade, and that always means more cash
in town. District Government workers should
be getting a $330 raise shortly, and that
will help.
One warm week-end raised the hopes of
soft-drink operators. One stated that the
week-end brought in almost as much money
as the best three-day period in all of last
summer. Several operators are beginning to
shift candy machines to vend cookies and
cakes. Placed near a beverage dispenser,
these items have been doing well.
Arcade business is proceeding nicely, and
this helps raise th~ gross of amusement
games for the city as a whole. The new
pistol machines have been doing very well
in the two or three arcades that have in-
stalled them. Colored films in the movie
machines have spurted grosses, though they
are so expensive that most machines are
still using black-white films. Other types of
machines are rocking along about th e same
as usual according to most reports.
MAY, 1949
No other Ball Gum Vendor like it!
Operator usually nets up to 75c ~ut 'of every
$1 the "Hunter" takes in!
A real money-maker from the moment you install it!
That's what operators say about the new "Hunter." But '
that's not all. Look at these two features: I-No
coin return. 2-No gum dispensed unless the
player wants it. That's why many report a
net of 75c out of every $1 the "Hunter"
takes in . Can you beat that for a
"Gold Mine"? Order now
through your jobber or
write for illustrated litera-
ture.
SILVER·KING CORP.
622 Diversey Parkway
Phonos, however, seem to be doing a
spotty business. Some operators claim their
business is poor; others say they can't com-
plain.
-Roy S. R amsey, Jr.
Right Time to Get
Into Pop Corn Biz
CHICAGO-Operators will find the cur-
rent season an excellent time to get into the
pop corn merchandising business, accord-
ing to Harold Schaef, head of the Victor
Vending Corp., which recently announced
Hot-Pop. The new device is a merchandiser
for dispensing hot pop corn, not coin-
operated but ideally suited to operators
who have the right experience to make a
go of routes, Schaef said.
Growers produced a big crop of corn
last year, of high quality, and that means
operators have the chance to I!;et into the
business when the supply field is very
favorable, he added. Prices are also favor-
able and the consumer demand for hot pop
corn is already so well established that an
operator does not have to worry about cre-
ating demand.
The locations for pop corn dispensers are
also well known and operators can solicit
such establishments with the assurance that
owners and managers already know the
product and how the public demands it.
Schaef mentioned taverns, drug stores, soda
parlors, candy stores, bowling alleys and
school stores as choice types of locations.
Operators who have long been accus-
tomed to using coin-operated devices show
hesitation about taking on merchandisers
that do not have a coin mechanism, Schaef
said he had learned since introducing the
Hot-Pop. "I am coin machine minded my-
self," he admitted, "and felt some concern
about departing from the old paths. But the
success of this' merchandiser, without a coin

Chicago 14, Illinois '
chute, has been full proof that operators
can well handle a route of such dispensers
and make good money."
Schaef said the operation of such a busi-
ness is simply that of a route business, just
as a man may have a coffee or cheese, or
milk route. The idea has been tested in the
business world for many years and every
operator will know men who have built up
a small independent business with such
routes.
In the pop corn business, the operator or
route man places the dispensers with the
locations free of charge as the best means
of attracting customers and selling them
the product, at a good profit margin. By
placing the dispenser, the operator retains
ownership and is the sole source of supply
for corn sold through the dispenser.
The main points of difference between a
coin-operated route and the non-coin type
is that the operator collects the wholesale
price for the merchandise upon delivery
and the location also fills the dispensers.
Thus, the operator is relieved of service
calls which would amount to a big total in
the course of a year.
In the pop corn trade, the merchandise
is usually supplied pre-popped in bags,
holding about 21h pecks, and the price
range to the operator is about 75 cents and
he sells to the location at $1.25 per bag.
The location will usually get 27 lO-cent
sales from each bag of corn. The Victor
plan recommends that operators count on
each dispenser selling a minimum of 7 bags
per week. It is also recommended that op-
erators start with about 25 machines.
The firm says many operators will pre-
fer to go more completely into the pop corn
business and pop their own corn. In buying
pre-popped corn the operator may expect
to make about 50 cents per bag in profit,
( See RIGHT TIME, Page 50)
43

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