Coin Machine Review (& Pacific ...)
Issue: 1938 March - Page 17
el.et:wt 'lip o-t Be el.ea.neJ.
An Editorial b y H. F . BURT
Operators and manufacturers alike
are about to see the greatest "crack up"
and the most stringent regulations
placed on the vending business-unless
something is done to curb the "high-
pressure babies" who have invaded the
vending field and are loading up the
inexperienced with useless machines
and false promises of extraordinary re-
turns.
The State Securities Department and
the Securities and Exchange Commis-
sion are giving increased attention to
the sellers and lessors of vending ma-
chines, and not without just cause. A
great number who were selling the
public whiskey warehouse receipts a
year ago, now are frightening holders
of the receipts into investing in the
little vending machine by reason of an
oversupply and the poor loan value of
$15 to $17.50 a barrel on green whi s key.
Many variations of the lease deals are
being worked, as well as many types
of candy and charm deals which prom-
ise the unsuspecting and inexperienced
public a "wonderful business."
Legitimate as well as prospective
operators suffer from the s e tactics.
" Spotters" for various lease deals and
route sales put machines anywhere ,
pay commissions that are much too
high , and generally make it difficult for
the man who is honestly trying to make
a living. The " sucker" who buys these
deals usually pays three or four times
the amount the machines are worth,
and the high-pressure sellers reap hun-
dreds of thousands of dollars. In addi-
tion, the buyer becomes discouraged
and either sells the machines at a tre-
mendous loss or neglects the route with
the result the public is confronted with
dirty machines, stale merchandise, and
generally unsanitary conditions.
Under prevailing conditions the vend-
ing industry cannot for very long avoid
trouble. Health officials are beginning
to act, the better business organizations
are aware of what is going on, and so
do the offices of states' attorneys and
the various securities commissions.
In the Chicago "Evening American"
of February 8, Robert P. Vanderpoel de-
clared: "The SEC has about concluded
that some of the vending machine con-
tracts are securities under the terms of
the federal securities act. Consequently,
it would not be surprising if govern-
ment action should be forthcoming."
Clean up the industry now, or be
cleaned out! The long arm of greed
practically put the pin game industry
out of business, and something will
happen to the vending industry if un-
scrupulous promoters are allowed to
continue their practices unabated.
•
Summer Plans
DENVER. (RC)-The Canteen Co. of
Denver is expanding its locations for the
1938 summer tourist business, j. L. Shap-
pell, local head said recently. With 70
million dollars of revenue expected this
year, the company is replacing old spots
with the new chrome-plated vendors ,
and is putting on a drive for potentially
good spots in summer-tourist points of
Interest. Famous spots such as the Red
Rocks Lodge, Grand Lake, Manitou, and
other historically attractive sites are in-
cluded.
•
made kn own to p ublic.
CHICAGO.-Determining to offset the
effect of certain information appearing
in public print unfavorable to coin op-
erated vending machines, H. D. Hud-
son, president of the Vending Machine
Operators' Association of Chicago, sent
this communication to the Chicago Tri-
bune which published it in the column,
"Voice of the People," in the issue of
February 26:
"Various articles · have appeared in
the past few weeks regarding the mis-
use of merchandise vending machines
near schools in the city of Chicago. It
is the desire of the members of this
Association that you be informed of
their position.
"This Association is opposed to the
operation of any vending machines of-
fering prizes or any other premium
methods and , at a recent meeting, a
resolution was passed condemning the
operation of any machines in this man-
ner.
"This Association was organized in
1920 and has been in continuous opera-
tion since that time. It adheres to a
policy of maintaining a high standard
in the sanitary dispensing of quality
merchandise through vending machines
without premiums or prizes of any kind.
Weare always glad to cooperate with
the proper authorities in opposing and
suppressing any misuse of vending
machines."
•
jane: "How you embarass me! Your
handkerchief is sticking out of your
tux."
jack: "Don't be embarassed. That's not
my handkerchief; it's my shirt."
Wile: "john, mother was so pleased
with all those nice things you said
about her in your letter to me. You see,
she opened it by mistake."
Husband: "Yes, I thought she would."
Year in •. year out
-BA.NK on it!
THE
Association Aims
MASTER
MERCHANDISER
TODAY ••• or 10 years from today ••• your
investment in MASTERS will produce more
consistent returns dollar for dollar than in
any other type of equipment. Not "flush
money," but solid earnings. If security ap-
peals to you, ask your MASTER distributor
for further details:
Are you on the .trail
of bigger profits?
Then investigate
M. BRODIE
2182 Pacific Ave.
Long Beach, Calif.
WILL P. CANAAN
1347 W. Washington
Los Angeles, Calif.
VIKING SPECIALTY CO.
530 Golden Gate
San Francisco, Calif.
MILLS-VIKING COMPANY
1356 W. Washington Blvd., Los Angeles, Cal.
THE NORRIS MFG. COMPANY
Or write the Factory for full
information about this and
other Proven Money Makers.
•
COLUMBUS, OHIO
NORTHWESTERN
WILL P. CANAAN
1347-51 W. Washington Blvd.
LOS ANGELES
17
COIN
MAcmNE
REVIEW
An Editorial b y H. F . BURT
Operators and manufacturers alike
are about to see the greatest "crack up"
and the most stringent regulations
placed on the vending business-unless
something is done to curb the "high-
pressure babies" who have invaded the
vending field and are loading up the
inexperienced with useless machines
and false promises of extraordinary re-
turns.
The State Securities Department and
the Securities and Exchange Commis-
sion are giving increased attention to
the sellers and lessors of vending ma-
chines, and not without just cause. A
great number who were selling the
public whiskey warehouse receipts a
year ago, now are frightening holders
of the receipts into investing in the
little vending machine by reason of an
oversupply and the poor loan value of
$15 to $17.50 a barrel on green whi s key.
Many variations of the lease deals are
being worked, as well as many types
of candy and charm deals which prom-
ise the unsuspecting and inexperienced
public a "wonderful business."
Legitimate as well as prospective
operators suffer from the s e tactics.
" Spotters" for various lease deals and
route sales put machines anywhere ,
pay commissions that are much too
high , and generally make it difficult for
the man who is honestly trying to make
a living. The " sucker" who buys these
deals usually pays three or four times
the amount the machines are worth,
and the high-pressure sellers reap hun-
dreds of thousands of dollars. In addi-
tion, the buyer becomes discouraged
and either sells the machines at a tre-
mendous loss or neglects the route with
the result the public is confronted with
dirty machines, stale merchandise, and
generally unsanitary conditions.
Under prevailing conditions the vend-
ing industry cannot for very long avoid
trouble. Health officials are beginning
to act, the better business organizations
are aware of what is going on, and so
do the offices of states' attorneys and
the various securities commissions.
In the Chicago "Evening American"
of February 8, Robert P. Vanderpoel de-
clared: "The SEC has about concluded
that some of the vending machine con-
tracts are securities under the terms of
the federal securities act. Consequently,
it would not be surprising if govern-
ment action should be forthcoming."
Clean up the industry now, or be
cleaned out! The long arm of greed
practically put the pin game industry
out of business, and something will
happen to the vending industry if un-
scrupulous promoters are allowed to
continue their practices unabated.
•
Summer Plans
DENVER. (RC)-The Canteen Co. of
Denver is expanding its locations for the
1938 summer tourist business, j. L. Shap-
pell, local head said recently. With 70
million dollars of revenue expected this
year, the company is replacing old spots
with the new chrome-plated vendors ,
and is putting on a drive for potentially
good spots in summer-tourist points of
Interest. Famous spots such as the Red
Rocks Lodge, Grand Lake, Manitou, and
other historically attractive sites are in-
cluded.
•
made kn own to p ublic.
CHICAGO.-Determining to offset the
effect of certain information appearing
in public print unfavorable to coin op-
erated vending machines, H. D. Hud-
son, president of the Vending Machine
Operators' Association of Chicago, sent
this communication to the Chicago Tri-
bune which published it in the column,
"Voice of the People," in the issue of
February 26:
"Various articles · have appeared in
the past few weeks regarding the mis-
use of merchandise vending machines
near schools in the city of Chicago. It
is the desire of the members of this
Association that you be informed of
their position.
"This Association is opposed to the
operation of any vending machines of-
fering prizes or any other premium
methods and , at a recent meeting, a
resolution was passed condemning the
operation of any machines in this man-
ner.
"This Association was organized in
1920 and has been in continuous opera-
tion since that time. It adheres to a
policy of maintaining a high standard
in the sanitary dispensing of quality
merchandise through vending machines
without premiums or prizes of any kind.
Weare always glad to cooperate with
the proper authorities in opposing and
suppressing any misuse of vending
machines."
•
jane: "How you embarass me! Your
handkerchief is sticking out of your
tux."
jack: "Don't be embarassed. That's not
my handkerchief; it's my shirt."
Wile: "john, mother was so pleased
with all those nice things you said
about her in your letter to me. You see,
she opened it by mistake."
Husband: "Yes, I thought she would."
Year in •. year out
-BA.NK on it!
THE
Association Aims
MASTER
MERCHANDISER
TODAY ••• or 10 years from today ••• your
investment in MASTERS will produce more
consistent returns dollar for dollar than in
any other type of equipment. Not "flush
money," but solid earnings. If security ap-
peals to you, ask your MASTER distributor
for further details:
Are you on the .trail
of bigger profits?
Then investigate
M. BRODIE
2182 Pacific Ave.
Long Beach, Calif.
WILL P. CANAAN
1347 W. Washington
Los Angeles, Calif.
VIKING SPECIALTY CO.
530 Golden Gate
San Francisco, Calif.
MILLS-VIKING COMPANY
1356 W. Washington Blvd., Los Angeles, Cal.
THE NORRIS MFG. COMPANY
Or write the Factory for full
information about this and
other Proven Money Makers.
•
COLUMBUS, OHIO
NORTHWESTERN
WILL P. CANAAN
1347-51 W. Washington Blvd.
LOS ANGELES
17
COIN
MAcmNE
REVIEW
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