Section 6. ( a) That Section 1 of Act No. 137
of th e General Assembly of 1933. approved March
24 • . 1933, be and the same is hereby amended to
read as follows: There is hereby imposed upon the
owners. operators. lessors and upon their agents and
receivers a privilege tax for the operation of coin-
operated machines and vending machines. including
automatic music vending phonographs. which tax
shall be paid ann ually to the Commissioner of
Revenues of the State of Arkansas. upon the fol-
lowing basis:
On each coin operated penny weighing scale .... S1.00
On each penny gum vendor ... _. __ . ___ ._._ ............. _._ .. ___ 1.00
On each United States Stamp vendor ... _ .... _. __ .. _ 1.00
On each cigarett e vendor ... _____ . ___ . __ .... _ .... _. ____ ...... 2.50
On each combination cigar and cigarette vendor 2.50
On ·each penny peanut vendor ... _. ______ .. _ .... _._ ... 1.00
On each music vending phonograph. __ .. __________ . 5.00
On all other coin·operated vendors for less
than 5c ____________ . ____ ."_. __ . __ ._ .. ____________________________ 1.00'
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_______ coin-operated
. _________ . ____ .. _________________________
. ____ 1.00,
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Phones: FEderal 1810 and FAirfax 5951
came in 1947 and they may be repeated
again in 1949. Oklahoma's somewhat un-
usual tax on music machines no doubt may
be held responsible for suggesting 1947
proposals to raise the phonograph tax in
Arkansas.
Through the years much credit must be
given to the Arkansas Music Operators
Assn. for its work in helping to prevent
high taxation. In 1945 and in 1947 this
organization performed the real work of
an association in fighting unfavorable legis-
lation. While the name of the group sug-
gests that it might work for music oper-
ators only, yet it fights for the whole trade.
Its work has been done quietly through
the years, and while many other organiza-
tions under similar circumstances have
passed into inactivity, this association keeps
on watching out for the best interests of
operators in the state.
The 1947 SOURCE BOOK lists such well-
known coinmen as Roy Bangs, J . B. Wood,
M. L. Armstrong, Dan Levine, Walter Day,
C. W. Holmes and John Stroup as active
in the association work. Much credit also
belongs to A. J. DeMer, attorney for the
group, and also to Mrs. Louise Early, the
secretary-trea~urer.
Attorney DeMer for
many years has been very cooperative with
other organizations in helping to meet legal
problems.
Arkansas is touched , by four states that
also have coin machine license laws, but
Arkansas holds the record for its low fees.
The other states bordering on it that have
license systems are L6uisiana, Mississippi,
Tennessee and Texas.
That REVIEW readers may be informed
more in detail about the Arkansas Jaw,
the statute is reprinted in full as follows:
ACT NO. 201
AN ACT TO LICENSE AND REGULATE THE
12
OPERATION OF AMUSEMENT GAMES DE-
SCRIBED IN THIS ACT: LEVYING A TAX THERE-
FOR. AND FOR OTHER PURPOSES. AND TO
APPROPRIATE SUCH REVENUE. REPEAL AND
AMEND CERTAIN SECTIONS OF ' ACT 137 OF
THE GENERAL ASSEMBLY OF 1933. BE IT
ENACTED BY THE GENERAL ASSEMBLY OF
THE STATE OF ARKANSAS:
Section 1.
The purpose of this Act is to permit
and lic ense the operation of coin operated amuse·
ment games and to regulate the
t18me
and fix a
penalty (or th e violation of this Act; and repeal
and amend certain sections of Act 137 of the General
Assembly of 1933.
Section 2. Amusement games shall include such
games as Radio Rifles, Miniature Football, Golf.
Baseball. Hockey, Bumper, Tennis. Shooting Galler-
ies, Pool Tables. Bowling and other miniature games
whether or not it shows a score and not hereinafter
excluded in Section 2 hereof, and where the charge
for playing is collected by a mechanical device.
and the operation of any of said games shall not
he construed to be in violation of any of the laws
of this State when operate!! in accordance with the
provisions of this Act.
Section 3.
Nothing herein contained shall be
deemed to legalize, authorize. license or permit any
machine common I y known as slot machines. Roscoes,
Jackpots or any machines equipped with any auto-
matic money pay-of[ mechanism.
Section 4. On each amusement game there shall
be imposed an annual privilege tax of $5.00. from
the passage of this Act until the beginning of the
fiscal year. July 1st. 1939. the Commissioner of
Revenues may issue a license or permit and charge
therefor one· half (VI) the regular annual tax, and
after the beginning of the fiscal year, July 1st,
1939, he shall collect for each machine the full
annual license fee when paid during the first six
(6) months of the · fisca l year, but any license fee
paid during the last six (6) months of the fiscal year
shall be upon the basis of one-half (VI) of the
annual tax. Upon the payment of the tax, the
State Revenue Commissioner will issue a license tag.
which shall state the period of time said amusement
game may be operated, and said tag must be at·
tached to the amusement game before placing in
operation.
Section 5. That every amusement game ' al de-
fined in Section 2 upon which the individual privi-
lege tax of $5.00 has not been paid, it is hereby de-
clared to be a public nuisance and may be seized
by any authorized agent of the State Revenue De·
partment and sold by the State Revenue Commis-
sioner on an order of the Pulaski Chancery Court.
provided further that the owner thereof ehall have
the privilege of redeeming said amusement games
within ten (10) days by paying the tax due and costs.
On aU other coin-operated vendors for 5c
or over .... _ .... _ ... ___ . ___ . __ ._. __ ._ ....... _ ... __ ....... __ ._ ............ 2.50
On all other co in·operated devices for 5c
or over ____ ..•. _ .. _. __ .... __ .... _ ..... _ ... ___ .. ___ .. _ .. _. __ ..... _ ... _ .. __ 2.50
On all coin· operated machines with over three
.
slots. for each slot over three._. ___ ........ _ .. ___ ._ .. 5.00
(b) That Section 3 of said Act No. 137 of the
year 1933. be and the same is hereby repealed.
Section 7. The State Revenue Commissioner shall
have the authority to fix rules and regulations for
the proper enforcement of this Act.
S~ction 8.
All revenue collected under this Act
shall be deposited in the State Treasury j the first
$30.000_00 of which shall be placed to the credit
of the School Equalizing Fund; all over said 130.-
000.00 shaH be placed to the credit of the State
Board 0 f Heal th for rural heal th work.
Section 9. If any provision of this Act shall be
held unconstitutional. it shall not be construed to
invalidate any of the other provisions thereof.
Section 10. All municipal corporations may li-
cense and tax amusement games and vendors de·
scribed in Section 2 and 6 of this Act. provided
that the fee shall not exceed the amount of tax im-
posed by Section 4 and Section 6 of this Act.
Section 11. All laws or parts of laws which are
contrary or r ep ugnant to the provisions of this Act
are hereby repealed.
Section 12. Whereas, there is no adequate law in
this State defining and regulating amusement game!
and whereas without such law the State is being
deprived of revenue upon such business through the
unregulated conduct thereof. and whereas the pass-
age of .uch laws necessary for the immediate preser-
vation of the public peace. health and safety of the '
inhabitants flf this State. an emergency exists and
this Act shall take e ffect and be in force from ann :
after its passage.
Approved March 9. 1939.
Appeal and Test Looms
On N. Y. Pin Ball
NEW YORK- Latest developments here,_,
before press time, in the unfavorable games ,
situation show trade circles considering
plans for taking an appeal on the adverse
court decision given recently by Federal '
Judge Pecora. Idea will also be to test con-
stitutionality of the new city ordinance
which bans pin ball.
The new city law arbitrarily bans the op-
eration of pin ball and "bagatelle" ma-
chines. It was generally understood that
owners would have 30 days in which to ship ,
equipment out of the city area.
Court proceedings which ended in the un '
favorable verdict by Judge Pecora contin-
ued for about two weeks, and a dozen dif-
ferent machines were before the court. Hon.
Samuel I. Rosenman, former Supreme Court
Justice, led the battery of legal talent rep-
resenting the trade. George Glassgold, CMI
counsel, made strong pleas before the city
council against the proposed ordinance.
Among witnesses for the Industry during
the court proceedings were Sam Stern, of
Williams Manufacturing Co., Chicago; Herb ,
Oettinger, of United Manufacturing Co.,
Chicago; Bert Lane, head of Seaboard, New
York; and Bernard Gottlieb, engineer . of
Chicago Coin Machine Co., Chicago.
Buys Arcade
SEATTLE-Northwest Sales Co., dis-
tributors of Mills phon os and other equip-
ment, has gone into arcade operating by
purchasing Parks' Arcades 'at 1st and
r
Madison.
Ron Pepple, Northwest Sales president,
has re-christened the establishment "North-
west Arcades" and installed Bill Alsdorf
of h is staff as manager.
COIN MACHINE REVIEW