Play Meter

Issue: 1977 October - Vol 3 Num 19

Operating
Arcade King
dies at home
Mike Munves, who was known as
the Arcade King, died August 23 at
his home in Fort Lauderdale,
Florida. He was 85.
In 1912 he established Mike
Munves Corp. on Park Row in New
York City and remained there until
his retirement in 1970. He sold the
company upon his retirement to its
present owners who two years ago
moved the firm to New Rochelle, .
New York.
In 1941, he wrote a 20-page book
called "Profits in Pennies: Your
Guide to Success in Modern Arcade
and Sportland Operation ."
He is survived by his wife, Rose;
his son, Alvin; and two sisters and a
brother.
Little Andrea McCardle, star of the Broadway hit" Annie," tries her new
Evel Knievel game. Andrea, an expert pinball player, was given the game
by Bally. Looking on are Lynn Rabin of TRG Communications and Dick
Gilman of Bally.
California association blasted
Fresh off a victory in the state
legislature, the California Music
Merchants Association (CMMA),
has itself been both attacked and
defended by association members.
The controversy concerns whether
the CMMA lacks the determination
or the funds to follow through with
its victory over non-chartered cities
and try to force the legislation on
chartered cities as well.
The legislation concerned is a
CMMA-sponsored bill which, when
signed by the governor, will require
all 331 non-chartered cities to tax
pinball and jukebox operators uni-
formly and according to gross
income. California operators in
non-chartered cities would be pay-
ing about $2.25 for every $1,000
grossed.
However, Chris Loumakis, a
CMMA member and president of a
Los Angeles distributorship (Pico
Indoor Sports), contends that the
state association "does not have the
balls to follow through" with the
legislation and try to require the
chartered cities like Los Angeles and
San Francisco to revise their taxes
accordingly.
Presently, San Francisco charges
a license fee of $50 per machine,
and Los Angeles has placed a
14
special arcade tax of $565 and a pool
room tax of $360, in addition to the
other city taxes charged to the
operators.
Loumakis, who met recently with
State Senator Paul Carpenter and
Assemblymen Dennis Mangers and
Chet Wray, claims that the time is
ripe for the CMMA to make a
second push, this time against the
97 chartered cities in the state.
" This is the problem we have had
with the CMMA in the past," said
Loumakis. "They lack the determi-
nation to follow through with things
like this. The bill that was passed is
not enough. I estimate that about 75
percent of the operators in the state
operate in those chartered cities."
A legislative victory over the
chartered cities, he said, would
come only if the operators and the
distributors in the state "commit
themselves with both time and
money, through the CMMA, to
seeking real tax equity for the coin
machine industry. To do other-
wise," he maintained, "would be
disastrous. "
The CMMA, he said, is now faced
with putting together a cohesive
plan that will get the operators
behind it . "1 think it can happen,"
he said . "I think the time has come;
but I, for one, am not sure the
CMMA has the cohesiveness to run
it through. If the CMMA can get the
uniform tax bill together, it has a
chance for passage. But I doubt if
they are going to try and pull it off."
However, Carl Fisher, an operator
in Inglewood, California and an
outspoken supporter of the CMMA,
took exception with Loumakis's
assessment of the situation. The
CMMA , he said, doesn't lack the
determination but, rather, lacks the
money to make a second push at
this time . In addition, he noted that
" when you're dealing with politi-
cians, you have to lead them along
gently. It's kind of hard to get a lot
of action out of them at one time. "
He said the CMMA is restricted in
pressing the issue further because
such a proposal would entail a
costly battle with lobby groups
representing the chartered cities.
Organizations such as the well-
funded Urban League, he said,
would be drawn into the fray
because such a proposal would cut
into the tax base of the chartered
cities.
"We just can't force the issue at
this time, " said Fisher. "If we had
just 500 more operators in the
CMMA, then we could really go to
October, 197.7, PLA Y METER
Georgia does itl
It's official! The Georgia Amuse-
ment and Music Operators Associa-
tion has been formed, ending thirty
years of frustrated attempts to unite
operators and distributors in that
state.
In its second organizational meet-
ing August 28 at the Hilton Inn in
Macon, Georgia, the GAMOA re-
ported a total membership of 55.
The estimated number of operators
in the state is 150. Frank Cannon of
Thomasville, Georgia, the state
association's newly-elected presi-
dent told Play Meter (September,
1977, page 14) that the association
was aiming for a membership of at
least 40 before it could call itself a
truly representative organization.
The guest speaker at the August
meeing was Garland Garrett, presi-
dent of the AMOA.
In addition to Cannon, the other
officers elected at the August
meeting were as follows: James
Crews of Lagrange, Georgia , vice
president; Lee Martin of Macon,
Georgia, secretary; and John Martin
of Macon , Georgia, treasurer. The
membership also elected an 18-
member board of directors which
town . But believe me, the associa-
tion is doing everything possible to
reduce the taxes in the state. It's a
tough thing. But if there were a
piece of legislation which would
threaten to raise the operators'
taxes even higher, then all the
operators would be saying they
would join . But if we're talking
about reducing taxes, then suddenly
all the operators turn hard of
hearing ."
"In Redondo Beach, where I
operate, " he continued, "I paid
$1,500 in taxes last year. It's a
chartered city and has a $50-per-
machine license fee . I operated
thirty machines in the city and had
to pay $1 ,500 in taxesl That was
more than Save-On-Drug Store
paid, and it grosses around $15
million a year. It paid only $1,200.
And big department stores like May
Company, which gross many many
millions more, paid only $2,200 in
taxes. And here I am paying $1,500
for thirty machines.
" Sure, the taxes are bad, but if it
weren't for the CMMA, they' d be a
lot worse. Operators would be
paying thousands more than they
are now. Every change in the State
of California to lower licenses has
come through the efforts of the
p
R
b r.19n
will be headed by the association's
four officers . The board of directors,
according to state association Sec-
retary Lee Martin, represent the
operators and distributors through-
out the state geographically.
Martin also said that the associa-
tion will probably meet again before
the end of the year but that no date
has yet been set for that meeting.
He also revealed that the organiza-
tion's dues is presently $100 but that
will soon be amended after the
association can project a budget.
The first order of business for the
fledgling association will be to
repeal adverse and antiquated legis-
lation . Also, according to Martin,
the association plans to focus in on
ways to improve the image of the
industry throughout the state. Rus-
sell Cates of Albany, Georgia is the
committee head who will spearhead
the association 's legislative matters
for the present time.
The state association was formed
after an organizational meeting in
July drew 81 interested parties . It
was the fifth attempt by operators in
the state to unite.
Bill Swanson (right) LaFo/lles Coin
Machines, Manistique, Music Oper-
ators of Michigan 1977 Music
Operator of the Year receives the
award from Mike Benson newly
elected president of MOM. Swan-
son was honored for his contribu-
tions to the amusement industry
and Music Operators of Michigan.
• • • and defended
CMMA, " he added.
"Most operators, though , don't
give a damn," said Fisher. " They' re
coattailers. They're getting a free
ride. They won't pay their fair share,
but they' ll reap all the benefits
anyway.
" It won 't be the association 's
fault ," said Fisher, ifthe uniform tax
is not followed up. "It'll be the fault
of those coattailers."
he said that in March he mailed
out letters to 500 operators in the
state to join with the CMMA to
defeat detrimental legislation a-
gainst the industry. " I received
answers from twelve operators, and
half of those were from present
members who appreciated the fine
work we are doing . Four hundred
and eighty-eight operators ignored
the printed addressed card to
respond my letter. They spend a
great deal of money for equipment
and nothing to defend their busi-
nesses from unfair licenses and
taxes. "
Fisher continued , "So I mailed a
second letter in early August. As
usual, I received no response . These
non-association operators want to
ride on the coattail of the paying
members ." Fisher said that if more
members would join the CMMA , the
state association would be able to
get more done, perhaps fighting a
second successful battle, this time
against the chartered cities.
Former CMMA and MOA Presi-
dent George Miller said the recent
CMMA victory over the non-
chartered cities was because the
state association was able to get the
state legislature to accept pinball
machines and jukeboxes as "vend-
ing machines ." This was necessary,
he said, because the non-chartered
cities in the state got around an
earlier state law affecting vending
machines by saying that pinball
machines and jukeboxes were not
included .
" Now those non-chartered cities
will have to tax according to the
gross, " said Miller. "They won't be
able to get arou nd it."
Miller added that he sees little
hope at this time for the state
association to press on against the
chartered cities, though he con-
ceded that " the goal of the CMMA
is for a gross income tax with all the
cities, both chartered and non-
chartered, charging uniform li-
censes."
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