gether are recelvmg from tobacco.
While there is a growing trend toward
state taxation of tobacco products, there
is an equally growing trend for tobacco
people to question the whole tax setup.
They point to the farmer as an example.
Three pounds of tobacco go into the
manufacture of 1,000 cigarettes. The tax
on 1,000 cigarettes is $3.50. This means
that the tobacco used in cigarettes pays
$1.17 a pound-or in other words, the
Government collects about a thousand dol·
lars in tax from each acre of cigarette
tobacco grown.
The farmer. meanwhile, 'although he is
getting "good" prices for his cigarette
tobacco, is realizing only around four hun-
dred dollars . an acre.
By a simple process of arithmetic, it can
be seen that the Government is getting
two and a half times as much as the
farmer for the tobacco.
Cigarette and tobacco tax receipts and
the number of states levying such taxes
have risen sharply since 1940. In that year
twenty-six states collected a total of $101.3
million. In 1944 thirty-one states collected
$151.6. Cig:arette and tobacco revenues col-
lected in 1944 showed an average decrease
of 0.3 per cent from 1943-because of
wartime shortages-but since July 1945
"
have risen rapidly.
States have found something better than
a gold mine in the tobacco tax. A shining
example is Oklahoma, whose cigarette rev-
enues for 1944 rose over those of 1940
COIN
by 130.8 per cent. Receipts for Arkansas
MACHIN. climbed 85.9 per cent, Tennessee and
RfVIEW
Texas 71 per cent, Georgia 66.6 per cent
Utah 56.6 per cent, and so on down th~
line.
The theory that tobacco is an inexhaust.
ible source of tax revenue is fallacious
toba<;co ."endo~s declare. Further hea~
FOIt
~fBRUARY taxatIOn IS a dIrect threat to the survival
of the tobacco industry.
1946
72
Golden Addresses Club
ST. LOUIS-"Advertising may suffer a
few shocks and we may be concerned that
the end of the war found many advertisers
unprepared, but, as a people we seem to
have the ability of always m;king a come-
back," said Will R. Golden, Eastern Sales
Manager of Uniyersal Match Corp., during
a talk before the New Haven Advertising
Club recently.
"Advertising," he continued; "has a tre-
mendous job to do, especially in this econ-
omy. It can fulfill this task without fear
of retardation or retrogression only if it
faces the challenge squarely. We must
maintain our particular interests and en-
terprises on a reasonable level with the
never-escaping objective of bringing more
and more quality goods to the American
public at lower and lower prices consistent
with maintaining a stable economy."
His talk before the Ad Club's weekly
luncheon meeting was a return engagement
for Golden who addressed members last
year at a similar meeting. In addition
thousands more heard the speech over Ra-
dio Station WNHC, New Haven.
Interspersing his speech with consider-
able humor, Golden nevertheless touched
on many of the more serious economic
problems of the day, and in conclusion
established this challenge for advertising:
"Not only will advertising continue, but
as a symbol of the greatest weapon in the
hands of mankind-namely a force of
education and learning and self-develop-
ment. As a facet of our complex economic
structure, advertising can serve to bring
to Park Avenue and to Tentb Avenue,
and to the big city and to the hinterland,
the interchange of information among the
peoples of all stations, all walks of life,
all nations of the world, glvmg life and
beauty to the theme of production-pro-
duction of more and more goods of finer
and finer quality, for consumption by en-
lightened peoples in a peaceful world."
The meeting was arranged by the New
Haven Advertising Cluh through C. C.
Balthasar, District Manap:er for Universal
in New Haven, a member of the Club.
Each guest was presented with a package
of Universal products containing: a box
of Royal Flash Billboard book matches,
carrying a gold-printed message of greeting
to club members; a box of General Mac-
Arthur "I Shall Return" safety matches
which were manufactured as a propaganda
weapon during the Jap occupation of the
Philippines; an OLD NICK and a BIT-
O-HONEY candy bar, manufactured by
Schutter Candy division of Universal Match
Corporation; and a "Miss BIT-O-HONEY
What's Your Number?" hooklet. In addi-
tion, reprints of Universal's famed "His-
tory of Fire" paintings were displayed,
and guests were offered reproductions suit-
able for framing.
Electric Vendor Arrives
NEW YORK-The first all-electric cigar-
ette vending machine was scheduled to
appear on the market in January according
to an announcement made by Eastern Elec-
tric Vending Machine Corp. The new
machine, Eastern Electric, is being manu-
factured under the supervision of Mario
Caruso, veteran electrical equipment ex-
pert.
The machine operates on AC or DC
current. Holding 320 cigarette packs, it
delivers in 1 and % seconds. Steel con-
struction makes it practically damage
proof. Some other outstanding features
are: dial selector to change price, positive
mechanical feed, price range from ten
to forty cents with each of the eight
cigarette columns handling a co mplete
pre·selected price range independently of
all other columns.
A heavy volume of orders is reported
and production is being stepped up to
make prompt delivery possible. The East-
ern Electric Vending Machine Corp. is
located in the General Motors Building
at 1775 Broadway, New York.
Wolf Back from Chi.
LOS ANGELES-Bill Wolf, of California
Amusement Co., returned to the Coast on
the 22nd after spending a couple of weeks
in Chicago with AMI officials and closing
deals that will result in revolutionary an-
nouncements for th e West Coast States. De-
tails were withheld as this issue went to
press.
Coinmatic: Enlarges
LOS ANGELES-Coinmatic Distributors
have taken additional space just east of
their present location at 2712 W. Pico Blvd.
to be converted into an attractive sales and
display room, accordi ng to Preston Jarrell.
Remodeling started in the latter part of
January. When the addition is finished,
Coinmatic also will have complete mainten-
ance service to offer, plus a complete line
of parts for all models.
Brown Issues Broc:hure
DALLAS-Ed Brown, Inc., cigarette op·
erator, is observing his 18th year of oper-
ating by issuing a four·page brochure of
pictures showing the progress that has been
made.
Eighteen pictures comprise the presenta-
tion and show the various branches of this
great service organization which maintains
operating headquarters in Dallas and Little
Rock.
V. E. Hicks Passes
LOS ANGELES-V. E. Hicks, 62, de-
partment manager for the Liggett and
Meyers Tobacco Co., passed away on the
6th. Hicks was well known to Southern
California cigarette operators "on direct"
with the tobacco firm. Interment was in
In '!lewond Park.
Riddell Expanding
PASADENA-The Riddell Co., tobacco
jobbers and cigarette operators, are ex·
panding and will soon add a new 24 by
110 foot building being built for them
adjacent to their present quarters. New
buiiding will be used to house vending
business, repai rs and warehousing.
PAPER IS NO LONGER RATIONED
industrial. trade. and general interest publications. and
for the first time in 3 years we can invite advertisers to
f01
USE ALL THE SPACE YOU WISH
in future issues of THE REVIEW. Our Mills have promised steady shipments in
the months ahead and increase in the quality of the stock will be evidenced in
future issues. until sometime in 1946 when we will be able to resume the heavy
coated stock used in pre-war years. So. there's reason to rejoice - - - unlimited
paper stock permits us to give you ALL of the space you need - - - and a reader-
ship. protected. amplified and augmented during the war years - - - is eagerly
awaiting your messages.
DEADLINE IS THE 12th of EACH MONTH
Get in Touch With Our Nearest Office Today
The' COIN MACHINE REVIEW
1115 VENICE BLVD.
CHICAGO 1:
35 E. Wacker Drive
CENtral 1112
Fitzroy 8269
LOS ANGELES 15. CALIF.
NEW YORK 17:
441 Lexington Avenue
Murray HIlI 2.5589