Coin Machine Review (& Pacific ...)
Issue: 1946 May - Page 11
OFFICE OF PUBLICATION: 1115 Venice Blvd., Los Angeles IS, Calif. Paul W. Blackford, editor
and Publisher: Clarence G. Beardslee, Assistant to the Publisher. Flhroy 8269. CHICAGO
OFFICE (1): C. J. Anderson, 35 East Wacker Drive, CENtral 1112: NEW YORl( OFFICI (17):
Ralph R. Mulligan, 441 lexington Avenue', Marray Hili 2·5589. SUBSCRIPTION RATES: $2.00
for 3 years--mlnlmum term accepted; SOc per copy.
C.M.I. Elects and Sets
1947 Show Dates
CHICAGO-The Annual meeting of Coin
Machine Industries, Inc., for the election of
Directors and such other business of cur-
rent import to the manufacturer members,
was held in the Association offices April 2_
The manufacturer members were nearly all
present,' either in person or by proxy.
The following directors were elected for
one year: F. H. Parsons, Buckley Music
System; Wm. Rabkin, International Muto-
scoye Corp.; Louis Gensburg, Genco Man-
ufacturing Co.
For two years: Walter Tratsch, A.B.T.
Manufacturing Corp.; R. W. Hood, H. C.
Evans and Co.; John Chrest, Exhibit
Supply Co.
For three years: DeWitt (Doc) Eaton,
Automatic Instrument Co.; David Gottlieb,
D. Gottlieb Co.; James A. Gilmore.
A detailed report was made of the prog-
ress to date of the solicitation of Associate
members in support of the Public Relations
: (See
C.M~I.,
AHct~e/*
Page 14)
f
THE REVIEW scoops the publishing
field again and starting with our issue
dated June, 1946, our covers will be
especially produced by Earl Carroll,
famous Hollywood impresario, restaur-
ateur, motion picture producer and dis.
coverer of "The Most Beautiful Girls In
The World." This exclusive publishing
arrangement starts with our next issue.
Frankly, you'll be amazed!
Call
DR. 3209
For Automatic Equipment.
Parts and Supplies
PAUL A. LAYMON
Robinson Suggests Excise Tax
Clarification in CMI Program
LOS ANGELES - "Curley" Robinson,
Managing Director of the Associated Oper-
ators of Los Angeles County, believes the
first step in the forthcoming Coin Machine
Industries Public Relations Program should
be a concerted effort to secure a fair and
proper interpretation of the Excise Tax on
coin-controlled equipment.
In a letter to James Gilmore, of CMI,
Robinson said:
"It is my opinion that the first job for
this program should entail a proper inter-
'pretation of the United States Internal
Revenue Excise Tax. This organization,
which has borne the burden of the troubles
of amusement device operators for the past
seven or eight years, is again confronted
with one ' of the great obstacles that faces
this business. This , is the Federal Excise
Tax of $100.00 on Amusement Machines,
which the Internal Revenue Department has
seen fit to class as gaming devices.
"You will recall that in 1941, Section
3267 of the Internal Revenue Code was
amended to include pin ball and other
amusement machines with a license fee of
$10.00.; and slot machines, as a result of
the operation of which the person operat-
ing same receives, or is entitled to receive,
cash, premiums or merchandise, taxed at
$50.00 per year.
"In 1942, the same section was further
amended to place music and amusement
machines in the $10.00 category and gaming
machines were doubled to $100.GO.
"It has always been our contentio~ that
gaming machines do not include pin ball
machines and/ or amusement devices, since
the original Section specifically set forth
pin ball and/ or amusement devices, as
distinguished from gaming devices, and
secondly because the subsequent amend-
ment did not alter the meaning of the words
used in the first passage of the Section. It
is ' our contention that a pin ball machine
and/ or amusement devices, is not a slo t
machine in the commonly accepted term,
even though Bliss of the Internal Revenue
Department has handed down a ruling that
where the player becames entitled to re-
ceive cash, premiums or merchandise by
reason of the operation of a pin ball game
and/ or amusement device, that such game
thereby becomes a slot machine or a gain-
ing device within the meaning of the
Section;
"We have always felt that where a mer-
chant redeems unused free plays or, to
put it plainly, purchases the players' free
plays, that the merchant is buying some-
COIN
thing tangible and is not giving the cash, MACHINf
premiums or merchandise as a reward for IIIVInv.
the operation of the game. This becomes
more cogent when it is ' placed against
Bli~s' ruling that mere winning of free
plays does not make the pin ball game,
and/or amusement device, a gaming de-
FOil
vice. If the winning ' of free plays does
MAr-
not make the game a gaming device, how
1~~6:
can the purchase of the privilege of using
these free plays be converted into a game
of chance and thus making the pin ball'
game, and! or amusemen t device, a gaming .
device?
"Since 1941, the operators have not been
greatly hampered by the above Section, '
even though it places the tax upon the
~rchant. The truth is, and this. is. prob-
ably true in 99 percent of th e cases, that
the operator stands one-half of this tax,
but since the operator was not compelled
to · purchase new games to any great ex-
tent during the past three or four years,
he was not overburdened. However, from
now on, it is becoming more and more
apparent that new games are going to
11
I •
(See ROBINSON SUGGESTS, Page 11)
WANTED TO BUY
ALL TYPES
O~
SLOT MACHINES
REGARDLESS OF AGE OR
CONDITION
PARTS ALSO NEEDED. BRING
OR SHIP THEM IN.
G. B. SliM
_541 E. 32nd Street, Los Angeles 11, Cal.
ADaalI7688
THE REVIEW HAS NEVER MISSED AN ISSUE IN THE PAST TWELVE YEARS!! '
NO OTHER COIN MACHINE MONTHLY CAN MAKE THAT STATEMENT!!
•
'
and Publisher: Clarence G. Beardslee, Assistant to the Publisher. Flhroy 8269. CHICAGO
OFFICE (1): C. J. Anderson, 35 East Wacker Drive, CENtral 1112: NEW YORl( OFFICI (17):
Ralph R. Mulligan, 441 lexington Avenue', Marray Hili 2·5589. SUBSCRIPTION RATES: $2.00
for 3 years--mlnlmum term accepted; SOc per copy.
C.M.I. Elects and Sets
1947 Show Dates
CHICAGO-The Annual meeting of Coin
Machine Industries, Inc., for the election of
Directors and such other business of cur-
rent import to the manufacturer members,
was held in the Association offices April 2_
The manufacturer members were nearly all
present,' either in person or by proxy.
The following directors were elected for
one year: F. H. Parsons, Buckley Music
System; Wm. Rabkin, International Muto-
scoye Corp.; Louis Gensburg, Genco Man-
ufacturing Co.
For two years: Walter Tratsch, A.B.T.
Manufacturing Corp.; R. W. Hood, H. C.
Evans and Co.; John Chrest, Exhibit
Supply Co.
For three years: DeWitt (Doc) Eaton,
Automatic Instrument Co.; David Gottlieb,
D. Gottlieb Co.; James A. Gilmore.
A detailed report was made of the prog-
ress to date of the solicitation of Associate
members in support of the Public Relations
: (See
C.M~I.,
AHct~e/*
Page 14)
f
THE REVIEW scoops the publishing
field again and starting with our issue
dated June, 1946, our covers will be
especially produced by Earl Carroll,
famous Hollywood impresario, restaur-
ateur, motion picture producer and dis.
coverer of "The Most Beautiful Girls In
The World." This exclusive publishing
arrangement starts with our next issue.
Frankly, you'll be amazed!
Call
DR. 3209
For Automatic Equipment.
Parts and Supplies
PAUL A. LAYMON
Robinson Suggests Excise Tax
Clarification in CMI Program
LOS ANGELES - "Curley" Robinson,
Managing Director of the Associated Oper-
ators of Los Angeles County, believes the
first step in the forthcoming Coin Machine
Industries Public Relations Program should
be a concerted effort to secure a fair and
proper interpretation of the Excise Tax on
coin-controlled equipment.
In a letter to James Gilmore, of CMI,
Robinson said:
"It is my opinion that the first job for
this program should entail a proper inter-
'pretation of the United States Internal
Revenue Excise Tax. This organization,
which has borne the burden of the troubles
of amusement device operators for the past
seven or eight years, is again confronted
with one ' of the great obstacles that faces
this business. This , is the Federal Excise
Tax of $100.00 on Amusement Machines,
which the Internal Revenue Department has
seen fit to class as gaming devices.
"You will recall that in 1941, Section
3267 of the Internal Revenue Code was
amended to include pin ball and other
amusement machines with a license fee of
$10.00.; and slot machines, as a result of
the operation of which the person operat-
ing same receives, or is entitled to receive,
cash, premiums or merchandise, taxed at
$50.00 per year.
"In 1942, the same section was further
amended to place music and amusement
machines in the $10.00 category and gaming
machines were doubled to $100.GO.
"It has always been our contentio~ that
gaming machines do not include pin ball
machines and/ or amusement devices, since
the original Section specifically set forth
pin ball and/ or amusement devices, as
distinguished from gaming devices, and
secondly because the subsequent amend-
ment did not alter the meaning of the words
used in the first passage of the Section. It
is ' our contention that a pin ball machine
and/ or amusement devices, is not a slo t
machine in the commonly accepted term,
even though Bliss of the Internal Revenue
Department has handed down a ruling that
where the player becames entitled to re-
ceive cash, premiums or merchandise by
reason of the operation of a pin ball game
and/ or amusement device, that such game
thereby becomes a slot machine or a gain-
ing device within the meaning of the
Section;
"We have always felt that where a mer-
chant redeems unused free plays or, to
put it plainly, purchases the players' free
plays, that the merchant is buying some-
COIN
thing tangible and is not giving the cash, MACHINf
premiums or merchandise as a reward for IIIVInv.
the operation of the game. This becomes
more cogent when it is ' placed against
Bli~s' ruling that mere winning of free
plays does not make the pin ball game,
and/or amusement device, a gaming de-
FOil
vice. If the winning ' of free plays does
MAr-
not make the game a gaming device, how
1~~6:
can the purchase of the privilege of using
these free plays be converted into a game
of chance and thus making the pin ball'
game, and! or amusemen t device, a gaming .
device?
"Since 1941, the operators have not been
greatly hampered by the above Section, '
even though it places the tax upon the
~rchant. The truth is, and this. is. prob-
ably true in 99 percent of th e cases, that
the operator stands one-half of this tax,
but since the operator was not compelled
to · purchase new games to any great ex-
tent during the past three or four years,
he was not overburdened. However, from
now on, it is becoming more and more
apparent that new games are going to
11
I •
(See ROBINSON SUGGESTS, Page 11)
WANTED TO BUY
ALL TYPES
O~
SLOT MACHINES
REGARDLESS OF AGE OR
CONDITION
PARTS ALSO NEEDED. BRING
OR SHIP THEM IN.
G. B. SliM
_541 E. 32nd Street, Los Angeles 11, Cal.
ADaalI7688
THE REVIEW HAS NEVER MISSED AN ISSUE IN THE PAST TWELVE YEARS!! '
NO OTHER COIN MACHINE MONTHLY CAN MAKE THAT STATEMENT!!
•
'
Future scanning projects are planned by the International Arcade Museum Library (IAML).