Coin Machine Review (& Pacific ...)

Issue: 1949 October

Permanent Change May Have Happened
To Some Types 01 Popular Locations
NEW YORK- A lot is being said these
days about beer, liquor, and th e taverns,
cafes, res ta urants and establishments where
drink are sold for on-premise consumption_
Th e wet-dry issue and territory is also in
the news at intervals, still checking on wha t
happened in the elections last November.
Opera tors of mu sic and other typ es of
machin es have shared in the gen eral de-
cline that has hi t locations whi ch depend
chieAy on sales of drink , and maybe these
operators have wished there i som ething
they cO\1ld do to aid taverns and similar
places to get on an upward trend again.
An authority in th e liquor trade here
recently, after surveyin g what may be the
underlying causes of th e general slump in
th e trade of eating and drinkin g places,
suggested th e following as about th e only
tep that could be taken now:
"Many outlet could improve their busi-
ness by raisin g th e quality and size of th eir
food and drinks and by pricing th eir meals
and beverages at levels wi thin more reason-
abl e reach of the peopl e in th e neighbor-
hood they serve."
Many an operator will wi sh the trade
leader had also said th at such locations
provide good phonograph music and the
diversions of shuffleboard and other amuse-
ment gam es.
In th e regular reports on loca tion s, whi ch
appear in TH E REVIEW at intervals, most
of them last year called attention to the
general fa ct that busin ess in taverns and
eating places was down from previous years.
Operators who had machines in such loca-
tions kn ew this already, of course, but tb e
official reports helped to concentrate at-
tention on tryin g to find the reason.
A liquor trade paper says re ports from
many sections of th e country show that th e
continued slump in on-premise sal es of al-
coholi c . bev~ra ges has "reached alarming
proportions. Th e paper continu es to say
th ere is no reli ef in s ight for this year, and
that decided changes in th e national life
and economy m ay prolong the slump for
such locations. Such a report, of course
will be discouragi ng to many operators. '
During Twenty-Two Years
of Leadership
Th e reasons given for Ie tra de in such
loca tions i interestin g. First, th e high
pri ce of distilled spirits hurts busin ess, and
excise taxes help to keep such prices high.
It i pointed out also th at competition for
the consum er's doll ar is now greater than
eve r and luxuries are po tponed for neces-
siti es.
It is also pointed out th at marriages and
the birthra te have in creased and thi s cuts
down the u se of spirits and beer because
new famili es must bu y hom es, furniture and
many oth er thin gs. Even televi sion ets for
th e home cut down on traffi c in locations
because people who buy th e sets will stay
at home.
Some of these reasons may see m thin ,
but they come from an auth ority in - th e
beverage trade who should know mu ch
about the real conditi ons th at affect tav-
erns, eatin g and drinking pl aces. Actually,
offi cial r eports show that sales of beer and
liquor have shifted decidedly to pack age
sales for home use. Total sales of beer for
the nation h ave not shown a ny slump but
h ave shifted to take-home sales.
Trade authorities say th ere has been a
real increase in th e number of estaBlish-
ments serving drinks in r ecent years, and
yet th e total busine
does not cl imb in
proportion. Th e downward trend in busi-
ness, it is said, in creases th e violation of
legal regulations and also leads to unfair
trade practi ces.
F inan cial circles report on th e brewin g
industry that th e bi g breweri es are findin g
b usiness on the increase, while the small
breweries are findin g conditions to be get-
tin g gradu ally worse. It is th e small brew-
eries that major in draught beer and, if
th eir husiness is bad, th e co nclusion is th at
taverns are affected by thi s trend. The bi g
firm s major on beer f or take-home use and
such sales are in cr easing enough to hold
total beer consumption for th e nati on at
pretty mu ch th e same level in recent years.
P ackaged beer accoun ted for 20 per cent
of total al es in 1935, but was up to about
70 per cent in 1948 and is expected to ac-
count for 80 per cent this year. Beer, of
Has Built
A.merica' s Most
Profitable Games!
Originators of
course, com petes with distilled spmts and
win e, but the beer industry is beginning to
talk more and more about th e competition
of soft drinks.
A recent survey of the beer trade, made
by a bi g research agency, produced the
conclusion that since 1930 beer has met
increasing competition with the beverages
in the soft drink field .
Anoth er an gle th at must be considered
along with th e r eports on beer consump-
tion remaining static, distill ed pirits de-
clinin g, etc., is the fact that population is
showin g bi g increases, enou gh to boost con-
sumption in some lines considerably.
H en ce, consumption of beer and liquor doe
not eem to be makin g gains in keepin g
with population increa es. In fa ct, per
capita use of liquor seems to be declining.
As to the extent of wet and d ry territory,
81 per cent of th e popul a tion is now said
to live in areas where distilled spirits can
be sold ; 18 pe r cent live in territory where
onl y package sal es are permitted. Seven-
teen states permit the sale of di tilled spir-
its all over, whil e 29 states have som e
wet and some dry areas. K ansas recently
chan ged to th e wet side, leavin g two sta te
still on the dry side.
At th e beginnin g of th e year th ere were
2,111 co unties in the nation th at permit the
sale of distilled spirits and 959 counties
that ban suc);. sal es. Lo cal option election s
in the first four months of the year showed
a small majority of uch elec ti ons go in g
over to th e wet side.
It ha s been discovered that in all but two
of the states whi ch have some wet and som e
dry areas, th e dry counties share in th e
state revenu e from liquor just as the wet
counties do. So, it is bein g pointed out
now th a t all r evenues from beer a nd liquor
should go only to tho e areas th at permit
its legal sale.
Keeney Oilers Automatic
ShullIe Scoring Device
CHICAGO- John Conroe, vi ce-pres ident
of .J. H. Keeney & Co., says th e automatic
fram e scorin g device on its new shuffie-
board scorin g board, M odel 4, is attract-
in g much attention. It a utomati cally jumps
to the next fr ame in a few seconds after the
points have bee n registered, in stead of de-
pendin g on the p layers pressin g a butto n
to advance to the next frame.
Th e autom atic fea ture ca n a lso be ad-
justed to increase or dec rease th e number
of required f ra mes, Conroe a id, to take
care of sin gles matches or doubles. Th e
autom a tic device may be had as an acces-
sory with Keen ey's M odel 3 scoreboard ,
th e automati c unit bein g 2 fee t by 4 inches
in size. Th e M odel 4 ca n be used for oth er
ga mes pl ayed on shuffleboard tables. Th e
firm also emphasizes th e ease with whi ch
its sco reboards can be insta lled.
FLIPPER BUMpERS
Visit your Distributor regularly for first hand
news about the latest Gottlieb Releases.
1140·1150 North Kostner Avenue
Chicago 51 , Illinois
14
COIN MACHINE REV/~ W
WASHINGTON
D.
c.
Economic Outlook .
After severaJ months of declines, various
econom ic indicators had taken an enco urag-
ing upward move by early September. One
good sign was in employmen t figures for
August_ Non-farm employmen t climbed
1,368,000---0verbalancing th e customary late
sum mer drop in agriculture jobs_ Total
number in th e working force in Augu st
was 59.947,000, an increase of a couple
hundred th ousand over July_ The number of
jobless dropped from 4,095,000 in July to
3,689,000 in August. Prospects of strikes
in a number of major industries by late fall
led Government economists to predict that
unemployment figures will be rising again
by that tim e. However, it is not expected
that jobless fi~ures will reach the 5,000,000
mark which is considered th e danger point.
Dr. Edwin Nourse, chairman of the Presi-
dent's Economic Advisors, recently stated
that th e general business psychology is
"enco uraging" and th at the coun try got
by "the unfortunate prospects of last sp rin g
without letti ng the situation get out of
hand_" Commerce Secretary Charles Saw-
yer, after a swing around the industri al
section of th e country, said th at despite
lum ps in many areas, "I found only opti-
mism among business leaders_"
Final stati sti cs from th e Bureau of In-
ternal Revenue showed th at receipts from
the coin machine tax for th e 1949 fiscal
year topped 1948 by nearly two million
dollars. Total take was $21,087,534 as com-
pared with $19,270,941 for th e year ending
June 30, 1948. The co in excise wa one of
th e few in th e excise ca tegory to show a
year to year increase, with over-all excise
collection s showing a decline of more than
a billion dollars from the 1948 fiscal year_
State Breakdown
Along with final dollar totals, th e Bureau
rece ntly issued its break-down of coi n
machine tax stamp sales. Because of th e
mechanic of collectin g data from vari ous
field offices, figures given by th e Bureau
apply only to th e number of premises in a
given state contai nin g coi n machines and
not to the total number of machine. In
other words, locations are given, but not
the number of devices in a loca tion.
a-
tionaIly, the Bureau reported that th ere
were 403,804 locations havin g one or more
amusemen t devices subject to th e 10 bite,
while 69,786 loca tions had one or more
machines subject to th e $100 gaming ma-
ch in e levy.
Leading sta tes with amu sement machine
locations were Pennsylvania, 30,780; New
York, 29,187; California, 28,890; Illinois,
26,947; Ohio, 25,478; Texas, 22,937;
CLEAN AIND CHECKED
We can ship the following:
GOLD CUPS . . .... . . . .. . .. $149.50
J. SPECIALS ............ . . 124.50
SPEC. ENTRY ............. 75_00
Add $20.00 for payout model
KEENEY SINGLES ......... 245.50
KEENEY TWINS .. . .. .. .... 349.50
RESERVE BELL ... .
274.50
JENNINGS CHALLENGERS
5-5 or 5-25 . . . .
264.50
WESTERN DISTRIBUTORS
122& S.W. I&th
Portland 5, Oregon
ATwater 75&5
OCTOBER, 1949
Missouri, 16,072; Wi consin, 14,701;
ew
Jersey, 13,226; and Massachusetts, 13,973.
In numbers of locations with gaming ma-
chines, the following states were out in
front: Illinois, 6,961; Washington, 6,939;
Texas, 5,919; Californi a, 5,042; Louisiana,
4,824; Ohio, 4,160 ; Iowa, 3,690; Pennsyl-
va ni a, 3,612; Oregon, 3,398; and Maryland,
2,849. With but 1,534 gam in g locations, the
vaunted state of Nevada failed to break
into the top ten.
Treasury Department's fi cal year report
con tained an item of interest to the Indus-
try. Total amount of nickels and pennies
in circulation during th e year endin g June
30, 1949 was 355,000,000 a compared with
346,000,000 during th e 1948 fiscal year.
Circulation in thi category has been on
a • steady increase over th e last decade. In
1939, circula tion of ni ckels and pennies
totaled only 192,000,000. Part of th e in-
creased demand over th e last ten years for
small coi ns is attr ibuted by Treasury De-
partment to sales taxes and the popularity
of odd prices such as th e $1.98 bargains.
However, Treasury gives the Co in Machine
Industry with its famous nickel standard
rno t of the credit for increasing th e de-
mand for 5-cent pieces.
Agriculture Department pred icts that
sales of cigars and cigarettes will remain
at near-record levels durin g th e curren t
fisca l year_ Cigarettes are expected to ap-
proach 390,000,000,000 in sales for the
year ending June 30, 1950, while cigar sales
"are expected to be in th e neighborhood of
5,600,000,000.
Prospects for ice cream sales are not so
good. The agency's prediction for per cap ita
sales in calendar 1949 is 16 pounds, as
compared with a pound hi gher last year,
and th e all-time record of 22 .5 pounds set
in 1946, Only 49% of all families buy ice
cream during a give n week , Agriculture
says. Purchases of ice cream vary with
family income, with those earning more
than 3,000 a year buying twice as much
as tho e earni ng less than th at sum.
Total 1948 advertising budget for soft
drinks was about 77,000,000, accord in g to
a n estimate made recently by th e American
Bottlers of Carbonated Beverages. The.
estimate was based on ac tu al ad expendi-
tures of $38,694,250 by bottlers and the
assumption hy th e trade group that fran-
chi se firms spent an eq uivalent amount.
Mr. Employer:
Why do YOIl not sive your em-
ployees the consideration they de-
serve, since it costs you nothing?
The 1911 State UnemplO1ment deduction
that you take from their .. Iules and
send to the State does not buy them
as much unemplO1ment DiMblllty Bene·
fit as you CIIn obtain by purchasing a
regular insurance plan .... ith a Private
Insurance Carrier.
This is not sales talk, but a fact-.ince
the 10 .... provides that no private inaur-
ance company plan complies .... ith the
law unless it gives b,tlw prol.clio,. than
the state ill lb. slime cost.
The Association and Group Inaurance
Bureau .... ilI gladly assist you to make
the challge over witboul chule by tele-
phoning them or dropping them a note
at
ZEIGLER INS. AGENCY, Inc.
541 South Sprlllg s ..... t
Lol ,,"elel, Canf.
MlchTgGII 0961
ALL INSURANCE Gild BOND LINES
Poee Deluxe
Royol Console
Designed for your top loca-
tions-finest walnut cabinet
- chrome trim - standard
PACE mechanism - all coin
plays - 5c-l Oc-25c-50c-$1 .OO.
Any combination - Mys-3-5
- One Cherry 2-5 or Criss
Cross 2-5-Club Reels.
Same Pace mechanism as
used in all the l~ading Reno
Clubs- proven by test. Write
for new low prices.
Poce Mfg. Co., Inc.
2909 INDIANA A VENUE
CHICAGO 16. ILLINOIS
15

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