Automatic Age

June, 1938
AUTOMATIC AGE
The Question Seems To Be:
Who Gets The Profits?
By 0. C. L ig h t n e r
T
HE dog and cat fight being carried on by
the two groups known as the National
Association of Coin Operated Machine
Manufacturers and the Coin Machine Manufac­
turers Association is causing considerable con­
fusion in the minds of the trade, many of whom
want to know what it is all about.
The main and principal trouble between
these two groups arises from the question of
who gets the profits from the annual coin ma­
chine show. Some manufacturers and distri­
butors who exhibit annually at the show don’t
know which way to jump. None of them want
to go in two shows. They feel sure that, in
times like the present, two shows are not justi­
fied and the expense should be eliminated.
The Coin Machine Manufacturers Association
were the first to originally take over the show
seven or eight years ago after the two operator’s
groups fought themselves to death. The oper­
ators had turned the affair into a racket, more
or less. However, after the first year or two the
Coin Machine Manufacturers Association ceased
to function much as a real organization. Some
who have again become active in its resuscita­
tion themselves dropped their membership. It
Sot so that no meetings were held and it be­
came a shell. It was kept alive in name only
for the purpose of operating the annual show.
There was considerable profit in the show, most
of which accrued to Joe Huber. Joe is reputed
to have pulled down as much as $10,000 a year
profit for himself.
Then, when the N.R.A. came into existence,
a more compact organization became necessary.
Codes were the law of the land, short-lived as
they turned out to be. At any rate, the law
forced organization and practically all the man­
ufacturers had to join. Fred Mills, representing
the largest unit in the business, was naturally
elected President. It was officered by a power­
ful group of big leaders, who for the first time
in the history of the Industry employed a paid
executive secretary and began functioning as a
standard trade association. When the N.R.A.
died like a dodo— to use the expression of Gen­
eral Johnson — some manufacturers began to
lose interest in their membership. This associa­
tion also became more interested in the profits
°f the annual show than in doing something for
the industry. In fact, it never would have sur­
vived on its merits. The profits of the show paid
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its overhead and it just went along. Under its
sponsorship Joe Huber was retained as show
manager and a division of the profits made with
him. Each year, according to best advices, his
cut decreased. Last year they got him down to
around $3500. The balance went to the associa­
tion. There was, however, some talk of cuts
given by the hotel on their receipts. The amount
of that cut is only rumored. Many facetiously
remarked that “somebody got a cut on the last
banquet” because most of those who were there
went out afterward to different one-armed
joints and got a square meal.
There is a big percentage of profit apparently
in the show. The Sherman Hotel charges $10 a
booth to the average showman. We ran our
hobby show there several years. However, if
you guarantee to fill a certain number of rooms,
you can get your booth rental for even less— in
fact, little or nothing. But assuming that the
hotel did charge $10 a booth at the outside and
the booths sold for an average of $125 apiece,
there was considerable profit. We all wish there
was that much profit in our business. Outside
of the booth rental there is very little expense,
except watchmen and manning during the
show, which would not run any more than $10
per booth at the most under any kind of cap­
able management. There is very little expense
otherwise; $5 a booth would easily cover every
possible contingent expense. There is no com­
mission necessary to space salesmen. There is
no costly newspaper and other advertising to be
done, as with most shows. The trade journals
contribute their space freely. It is ironical that
while we originated this show, it is the only
show that we ever took part in in all our pub­
lishing experience where we had to pay for
space. All other shows trade a booth to the
publishers in exchange for advertising. In fact,
it is the trade journals that bally up the show
and get the crowd. However, we never kicked
about that. We were always willing to pay our
share and go along.
That brings the story down to the present
time. The trouble that now forces itself upon
the trade arose at the last show. Booth prices
were yanked up again in the face of decreasing
business. Some manufacturers resented it and did
not participate. The supply people particularly
who wanted to take part in the show merely to
introduce one gadget— perhaps with the idea
that there might be a chance for expansion of
their coin machine parts business— complained
of the high proportionate cost as against the
meagre possibilities of getting business. The
supply people were abused and taken advan­
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