Coin Machine Review (& Pacific ...)

COIN MACHINE REVIEW
The Right
Kind of
Licensing
By
O. D.
T HE words "licensing" and "revenue"
are synonymous. Wherever you find the one,
the other is sure to follow. The purpose of
licensing is to raise revenue for one thing
or another and the more revenue licensing
earns, the more important licensing of that
particular business or profession becomes.
Since the beginning of time, nations Ii·
censed business and individuals for the
purpose of operating the government. Every
business, small or large, was a ked to
contribute toward the function of govern·
ment. In return, the government protected
and regulated the source of its income. The
more support it received from that busi·
nes, the more consideration it retaliated
for the good of that business.
My suggestion for licensing in regard
to the coin machine indu try is nothing
new. It is simply following in the foot·
teps of the experience of other businesses
now being licensed. My contention is that
if a government were to receive a fair and
equitable income from the coin machine
bu iness, particularly from the operation
of machines, it would do everything pos·
sible to assist that branch of the industry
for the good of all concerned. The less
interference with the operation of mao
chine, the more money operators would
make and consequently the bigger the in·
come would be to the government. There
is no other answer to that problem.
This question of licensing machines has
been misinterpreted in several parts of the
country. Jut like any other proposal,
however desirable it may be, there are al·
way certain people who will go to ex·
tremes and misuse the privilege. I want to
make this point clear to everyone in the
industry, that while I am in favor of plac·
ing an equitable license for the operation
of coin·operated machines, I am at the
arne time strongly opposed to any license
which will create monopolies or place a
burden on certain types of small machine
which, becau e of their low earnings can·
not stand any kind of tax whatever.
The sugge tion of certain pin·table opera·
tors of p.lacing 1.00 per year tax on a pin
table i ju t a ridiculous as placing a
10.00 tax on small merchandise machines
of low earning capacity-like peanut rna·
chine_.
With the same thought in mind a too·
large tax on coin·operated machines is just
as detrimental as too little, whereas a fair
and equitable tax on each type of con truc·
tion, based on its earning experience,
would answer the problem with fairness
to all.
A licen e on the operation of coin·opera.
ted machines should be such that it defrays
all cost of administering, plu a fair sur·
Jennings
plus for revenue purposes. Too small a
tax would not only defeat its purpose, by
not earning enough money to make it
worth while, but in many in tances it
would cost the tax·payer money to have it
enforced. No license at all would be better
than a licen e which would not pay its
own way. A license in order to be success·
ful must raise revenue.
An equitable occupational tax should be
paid by the operator and placed on each
unit with a certain limit included. In other
words, the amount of the tax will be de·
termined by the number of units which
an operator controls. upposing the tax
was on units of fifty. For each fifty the
operator would pay a similar tax. Suppos·
ing the tax were 100 for fifty machines
and the operator wanted to operate seventy·
five, the tax would be $200, and the same
co t would apply up to a hundred rna·
chines.
A. L. Kropp Wins
Free Car at Show
CHICAGO-The lucky winner
of the new Chevrolet delivery
sedan which was given away at
the Coin JVlachine Show was A.
L. Kropp, veteran operator of
Meridian, Mississippi. H is letter
of thanks to the NACOMM says:
"The writer was the lucky
holder of ticket winning the
Chevrolet delivery sedan. I failed
to get Invoices for all my pur-
chases and only turned in 17
tickets. I sure am delighted with
the car and need It very much.
"I have attended every con-
vention and always feel well re-
paid for time and money spent,
but this year was an exception-
ally profitable trip for me.
"I want to thank all the manu-
facturers for the car and wish
you a prosperous year."
April 1935
In addition to the occupational tax, an
individual tax should be placed against
each machine_ This tax also should be paid
by the operator. The operator should be
the only one having the right to purchase
an individual machine unless provisions are
made to the contrary.
Whenever you have a license on a busi-
ness or profession, you have regulation and
control by the government. This regulation
acts as a form of government for that par-
ticular bu iness or profession. It elevates
it to a bigher plane and in many instances
directly influence its growth and success.
A license on a business accomplishes
two things: regulation and revenue. Take
for example the oil industry, the steel in-
dustry, telephone and telegraph and other
industries. Through licensing, the govern-
ment is able to control and regulate, as
well as derive substantial revenue_ The
arne is true of the professions, law, medi-
cine, chemistry. In order to protect the
public, the ~overnment exercises its author-
ity for the good of all concerned-the pub-
lic and the profession-by legal regula-
tion.
This same regulation and control if di·
rected to the operation of coin machine
would lift our industry to a highly desir·
able plane. It will afford all the advan-
tages and benefits of governmental regula-
tion and control and eliminate all the
abuses which are ever present in the op-
eration of machines.
ummarizing the facts, then, we have:
First- Licensing means revenue, so be
sure that the licensing brings revenue. If
the license is designed so that it would not
bring a fair revenue, I am opposed to it.
Second-Licen e coin-operated machines
in keeping with the experienced earnings
of tllose machines. Some of the small ma-
chines cannot stand any licensing. Other
machines can stand a little and still others,
because of their higher earnings can stand
a substantial amount.
Third- 0 arrange your licensing so
that it will discourage and prevent monop-'
oly of operation.
Fourth-See to it that the revenue from
licensing will adequately pay for the ex-
pense of administering it, as well as leave
a ub tantial balance in revenue to help
defray the cost of government.
Fifth- Licen ing will bring along with
it regulation and order to the operator and
to his problems_ It will keep out question-
able characters and punish the hoodlum
and hi-jacker. It would place operations
on a high plane ju t like other well-regu-
lated busines .
If licensing is carried out along the lines
sugge ted , it will accomplish the purpose
for which it is intended. Any radical devi-
ation from the e principles will be detri-
mental and injurious to a program which
will benefit the industry as a whole in time
to come. Because of the fact that govern·
ment is seeking all possible sources of
income, it will ooner or later include Jj-
censing on the operation of coin machines.
If tho e of u interested in this indu try
will take tlle initiative and make recom-
mendations which are just and equitable
for all, we will bring about the desired
re ults speedily and successfully.
SPECIAL TRADE CHECKS
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ROUND--SQUARE--OR OCTAGON SHAPE
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300 .. • _ ••..•• $7.50
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400_ •..• _ • •. • 9 .00
1000 . . . . . . . . 18.00
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