Coin Machine Review (& Pacific ...)
Issue: 1950 July - Page 16
vendors is illegal puzzles Internal Revenue
Bureau officials. They point out that the
last time Congress amended the coin ma-
chine tax law such vendors were specifically
exempted from the gaming machine tax.
The New York court, however, ruled the
machines in violation of gambling laws.
Cigarettes Hold Well
Cigarette sales are holding up surpris-
ingly well, according to Agriculture De-
partment. The agency had figured there
would be a falling off from the all-time
record set last year. \ However, cigarette
sales for the first 1950 quarter were ahead
of the same 1949 period by almost 3%.
Operators can expect little change in
cigarette buying habits even if Congress
votes the proposed tax cut for economy
brands. Spokesmen for smaller ciggie firms
have stated that the cut would give them
no more than 5% of the national market.
Federal Trade Commission figures the name
brands now have about 97% of the market.
FTC supports the cut as an aid in reduc-
ing the present near-monopoly. Treasury,
however, opposes the reduction as a revenue
loss. There is a strong suspicion that Treas-
ury was coerced into its opposition by a
powerful member of the House Ways and
Means Committee who happens to come
from a state where most of the big tobacco
firms operate. When the reduction was first
proposed a couple of years ago, Treasury
wrote a report . endorsing the move.
Phono Record Prices
Justice Department's drive against price-
fixing in the phonograph record industry
should result in benefits to phono opera-
tors. The agency has struck hard and fast
at the practice in Pennsylvania and is in-
vestigating the situation in other major dis-
tributing cities. Its latest move was against
Philadelphia wholesalers and retailers. Four
wholesalers, including Decca and Capitol
distributors, and eight retail record stores
were indicted by a federal grand jury on
charges of conspiring to fix prices. Some
six months ago, Justice cleaned up the
Pittsburgh area by securing convictions. In
the earlier case, a specific point in the
indictment was a charge tliat prices were
deliberately kept high to music machine
operators.
The President's midyear economic report
due about the middle of July will be highly
optimistic. Product~en, employment, and
buying power have all been maintained at
high levels for the first half of 1950. The
President, however, will warn of the possi-
bility of a future slump ; he will point
especially to the drop in farm income, using
statistics in an attempt to gain wide ap-
proval for the Brannan farm program.
Since the report will be the last issued by
the President prior to fall elections, it will
emphasize the contributions to the national
economy made by the Democrats and mini-
mize the shortcomings. Truman will be on
solid ground in crediting the Administration
with keeping buying power high, but on
shaky soil when he attempts to justify the
continuing federal deficit,
One Operalor Says:
The first reply to be received in answer
to a survey of trade opinion came from
a state bordering on the Gulf. The ques-
tionnaire was sent out at the end of last
year as a part of the check on trade opinion
that THE REVIEW makes at regular intervals.
Digests of the various replies will be pub-
lished at intervals but the opinions in the
first return questionnaire received are given
below in full. The operator is known na-
tionally.
Question 1. Do you favor the trade mak-
ing an organized fight for the repeal of
the federal excise tax ($10 on phonos,
games and $100 on bells) before the next
Congress?
Ans. No, especially in the ease of
games and bells. A federal license
keeps these types of machines going
in a great many places. A federal
license on pin games should be a
maximum of $25 per year, whether
or not free plays are reimbursed.
Q. 3. Would you like to see freer credit
(financing) for operators in buying new .
machines during 195O?
Ans. There always has to be a tight
rein on coin machine financing, be-
cause operators for the most part in-
tensely dislike paying debts of all
kinds.
Q. 4. What special objective "for the
benefit of the Industry" would you like to
see the COIN MACHINE REVIEW fight for
during the current year?
Ans. Most important would be to
separate the federal license on coin
machines from bell machines, giving
a separate classification to pin games
whether they payoff or not. Also, ad-
vocate high licenses on pin games for
cities and suggest to mayors that they
use pin games for tax purposes.
Q. 5. National Coin Machine Week has
been listed with the U. S. Dept. of Com-
merce for next June 25-30. How do you
think the week should be observed?
Ans. There should be a large con-
vention and show in Chicago for
looking at new equipment, exchange
of ideas, etc.
Q. 7. Some operators say that lower liv-
ing costs for the consumer would do most
good in boosting the patronage of coin
machines; others say operators would be
helped most by reducing the costs of doing
business; others say operators can only
make more money by putting out more
machines. What do you think?
Ans. The cost of games is entirely
too high, especially 5-balls. Of all the
5-balls that come out during the course
of a year there are only four or five
that an operator can make money with.
Q. 8. How are "taverns and restaurants as
locations in your territory?
Ans. Taverns are gQod; restaurants
are just fah· at the present time.
Air Freight Lower On Machs.
CHICAGO-In a~ announcement of re-
ductions in air freight rates, United Air-
lines made substantial reductions in rates
on coin-operated amusement and vending
machines in eastbound shipments from eight
western cities to major midwestern and
eastern points. The purpose is to stimulate
eastbound shipments. The new rates include
a 20 per cent reduction in rate from Los
Angeles to Chicago and other eastern cities.
FAVORITE
of Operators
aud Mauufa~turers
DUO LOCKS
Throughout the industry Duo
means better quality and per-
formance. 3 sets of tumblers
(total of 14) make it practically
pick-proof. Many key changes-
exclusive, protected codes for
manufacturers.
TV"'"
.
;-tEN DE:R~ON
"Of course, Sam's low pric'e sare due to the
fact that he's outta the high rent district"
16
Operators-Write for details of
the Duo Registered Key Plan!
THE ILLINOIS LOCK CO.
808 S. Ada Street, Chicago
7,-"".
COIN MACHINE REVIEW
Bureau officials. They point out that the
last time Congress amended the coin ma-
chine tax law such vendors were specifically
exempted from the gaming machine tax.
The New York court, however, ruled the
machines in violation of gambling laws.
Cigarettes Hold Well
Cigarette sales are holding up surpris-
ingly well, according to Agriculture De-
partment. The agency had figured there
would be a falling off from the all-time
record set last year. \ However, cigarette
sales for the first 1950 quarter were ahead
of the same 1949 period by almost 3%.
Operators can expect little change in
cigarette buying habits even if Congress
votes the proposed tax cut for economy
brands. Spokesmen for smaller ciggie firms
have stated that the cut would give them
no more than 5% of the national market.
Federal Trade Commission figures the name
brands now have about 97% of the market.
FTC supports the cut as an aid in reduc-
ing the present near-monopoly. Treasury,
however, opposes the reduction as a revenue
loss. There is a strong suspicion that Treas-
ury was coerced into its opposition by a
powerful member of the House Ways and
Means Committee who happens to come
from a state where most of the big tobacco
firms operate. When the reduction was first
proposed a couple of years ago, Treasury
wrote a report . endorsing the move.
Phono Record Prices
Justice Department's drive against price-
fixing in the phonograph record industry
should result in benefits to phono opera-
tors. The agency has struck hard and fast
at the practice in Pennsylvania and is in-
vestigating the situation in other major dis-
tributing cities. Its latest move was against
Philadelphia wholesalers and retailers. Four
wholesalers, including Decca and Capitol
distributors, and eight retail record stores
were indicted by a federal grand jury on
charges of conspiring to fix prices. Some
six months ago, Justice cleaned up the
Pittsburgh area by securing convictions. In
the earlier case, a specific point in the
indictment was a charge tliat prices were
deliberately kept high to music machine
operators.
The President's midyear economic report
due about the middle of July will be highly
optimistic. Product~en, employment, and
buying power have all been maintained at
high levels for the first half of 1950. The
President, however, will warn of the possi-
bility of a future slump ; he will point
especially to the drop in farm income, using
statistics in an attempt to gain wide ap-
proval for the Brannan farm program.
Since the report will be the last issued by
the President prior to fall elections, it will
emphasize the contributions to the national
economy made by the Democrats and mini-
mize the shortcomings. Truman will be on
solid ground in crediting the Administration
with keeping buying power high, but on
shaky soil when he attempts to justify the
continuing federal deficit,
One Operalor Says:
The first reply to be received in answer
to a survey of trade opinion came from
a state bordering on the Gulf. The ques-
tionnaire was sent out at the end of last
year as a part of the check on trade opinion
that THE REVIEW makes at regular intervals.
Digests of the various replies will be pub-
lished at intervals but the opinions in the
first return questionnaire received are given
below in full. The operator is known na-
tionally.
Question 1. Do you favor the trade mak-
ing an organized fight for the repeal of
the federal excise tax ($10 on phonos,
games and $100 on bells) before the next
Congress?
Ans. No, especially in the ease of
games and bells. A federal license
keeps these types of machines going
in a great many places. A federal
license on pin games should be a
maximum of $25 per year, whether
or not free plays are reimbursed.
Q. 3. Would you like to see freer credit
(financing) for operators in buying new .
machines during 195O?
Ans. There always has to be a tight
rein on coin machine financing, be-
cause operators for the most part in-
tensely dislike paying debts of all
kinds.
Q. 4. What special objective "for the
benefit of the Industry" would you like to
see the COIN MACHINE REVIEW fight for
during the current year?
Ans. Most important would be to
separate the federal license on coin
machines from bell machines, giving
a separate classification to pin games
whether they payoff or not. Also, ad-
vocate high licenses on pin games for
cities and suggest to mayors that they
use pin games for tax purposes.
Q. 5. National Coin Machine Week has
been listed with the U. S. Dept. of Com-
merce for next June 25-30. How do you
think the week should be observed?
Ans. There should be a large con-
vention and show in Chicago for
looking at new equipment, exchange
of ideas, etc.
Q. 7. Some operators say that lower liv-
ing costs for the consumer would do most
good in boosting the patronage of coin
machines; others say operators would be
helped most by reducing the costs of doing
business; others say operators can only
make more money by putting out more
machines. What do you think?
Ans. The cost of games is entirely
too high, especially 5-balls. Of all the
5-balls that come out during the course
of a year there are only four or five
that an operator can make money with.
Q. 8. How are "taverns and restaurants as
locations in your territory?
Ans. Taverns are gQod; restaurants
are just fah· at the present time.
Air Freight Lower On Machs.
CHICAGO-In a~ announcement of re-
ductions in air freight rates, United Air-
lines made substantial reductions in rates
on coin-operated amusement and vending
machines in eastbound shipments from eight
western cities to major midwestern and
eastern points. The purpose is to stimulate
eastbound shipments. The new rates include
a 20 per cent reduction in rate from Los
Angeles to Chicago and other eastern cities.
FAVORITE
of Operators
aud Mauufa~turers
DUO LOCKS
Throughout the industry Duo
means better quality and per-
formance. 3 sets of tumblers
(total of 14) make it practically
pick-proof. Many key changes-
exclusive, protected codes for
manufacturers.
TV"'"
.
;-tEN DE:R~ON
"Of course, Sam's low pric'e sare due to the
fact that he's outta the high rent district"
16
Operators-Write for details of
the Duo Registered Key Plan!
THE ILLINOIS LOCK CO.
808 S. Ada Street, Chicago
7,-"".
COIN MACHINE REVIEW
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