A 1944 COPYRIGHTED FEATURE OF: THE CASH BOX, 381 FOURTH AVE., NEW YORK (16) . , '1 Ip ' - - ----- . : ' 1 . / ' v ' v - - - - ' • ' ' • V PUBLICATION CHICAGO OFFICES OFFICES 203 N. Wabash Aye. 381 Fourth Aye. Chicago, III. 4ew York 16, N. Y. INDUSTRY” CONFIDENTIAL WEEKLY OF THE COIN MACHINES Tel. DEArborn 0045 All Phones: “THE FORBIDDEN Helen Palmer, Mgr. Murray Hill 4-1725 ISSUED EVERY WEEK BY FIRST CLASS MAIL REPRODUCTION IN WHOLE OR IN PART WITHOUT WRITTEN PERMISSION FROM THE PUBLISHERS. COMPLETE CONTENTS COPYRIGHTED 186 3L. 6 NO. 30 APRIL 17, 1945 SERIAL NUMBER “The Coin Machines Merry-Go-Round” by Bill Gersh CASH FLASH BRINGS TAX SMASH Twice in the past year. The Cash Box has repeated its editorial entitled "Quiet”. This editorial proved one of the most popular to have yet appeared in this industry. Its popularity is based on the fact that this is the time for this trade to contain within itself its business transactions, its earning capacity and all other matters which might be seen or fall into, the hands of blue-noses, publicity seeking politic- ians, tax seeking legislators, or the any others who can harm this trade with this sort of knowledge. Surely, with the tax situation so seriously desperate, and continuing to grow more and more alarming each day thruout the nation, this is the time for - quiet. This is not the time for anyone to openly advise the world the amount of money his equipment is earning. Many will recall what this meant in one state legislature some months ago when a ranting, raving tax bug got up on the assembly floor and wildly waved a page from a publication wherein tremendous cash figures were openly printed regarding the earning power of music maahines and other equipment of this industry. The result, in that specific case, was to bring about a demand from the majority of the assembled members of this state's legislature for a monstrous share of the gross receipts from music machines and other equipment. Tho this was eventually de- feated, much effort and energy, not to speak of the sleepless nights of worry that many of these men underwent in the efforts they pursued to offset this most confisca- tory and severest sort of taxation against this industry. (And a demand for a share of the gross receipts is becoming the national vogue among the tax bugs.) Everywhere in the nation, gradually and surely, tax bugs are standing up on the floors of their assemblies and senates and yowling their heads off that their state obtain a big share of the gross receipts from coin operated equipment. Some such taxes are already in effect. Others have been defeated. But as even these coinmen who have been successful in defeating such legislation admit, tax bills of this type will continue to reappear at each session of their state legislatures and they fear that eventually such taxes will become fact. It is therefore most treacherous, and an actual crime against all in this busi- ness, for anyone in this industry to flash cash proceeds in the faces of such men who are so intent on severely taxing this trade. It is certainly even more dangerous to openly advertise that certain equipment will earn duch tremendous amounts of money that trucks will prove necessary to bring the cash to the bank. All this but irritates and incites the tax bugs. All this is what brings about demands by these tax bugs that their states, counties, cities, villages and hamlets share in the gross income from the machines of this industry. Tho twice before The Cash Box has urged quiet on this trade, and has made it its own policy to keep this medium strictly confidential and confined to the members of this business only, it feels now that such warning should once again be published. Many seem to have again become lax these past few months and have brought harm upon themselves unknowingly by too much open discussion of their business affairs and osten- tatious display of their earnings. Not only have they brought harm upon themselves, but upon all in this industry. Thruout the nation there is a great urgency forced upon the average legislator to obtain funds so as to be able to take care of the millions of service men who will soon return to this country. These politicos realize that only by quick action will they be able to set up a taxation program necessary to assure their conmunities and states, and the nation as well, the tax monies for public works projects and other works programs, so that the returned veterans will not again have to stand cold and windy street corners peddling apples. This is something that everyone in this industry, too, wishes to avoid. That is why the average coinman is willing, and even happy, to pay higher license fees on his equipment, as long as he feels that this license tax money will be used for the best ;; ' ' • : t; : V " ' • I t • V . :• ' ! ' ' ’ * . .SLu 2 : H ki* •5 * ' • VOL. 6 NO. 30 THE CASH BOX APRIL 17, 1945 “The Coin Machines Merry-Go-Round 99 benefits of these service men as well as for the good and welfare of his own commun- ity. But no one wants to pay confiscatory nor inequitable taxes. No one wants to sud- denly find himself out of business because of such high taxation that he cannot con- tinue to profitably operate his business. This very thing, this inequitable and con- fiscatory taxation, is being brought about by the men in this industry who, tho they openly oppose it, unconsciously flash cash in the eyes of their neighbors. 'When this sort of thing reaches a publication which can be obtained by any poli- tician in the country by simply purchasing it from a newsstand, then trouble starts to brewing. The case histories of resultant political actions are national knowledge. One after another reports have been received from coinmen all over the nation, as the 194C state legislative sessions came into being, that tax bugs were appendaging re- ports from certain media to their bills, showing where this industry was earning so much money that it could stand up under the severest kind of taxation - a share of the gross receipts. Again The Cash Box urges the members of this industry to quiet concerning their businesses and their earnings. This is not the time to openly advertise anything about big money. This is not the time to even discuss -earnings, especially where strangers to this trade might hear them. And certainly, all will admit, that this sort of information is something which should never appear in print - unless the mem- bers of this trade are anxious to commit business suicide. • It must be firmly impressed on the men in this business that tho present license fees may not seem too difficult to pay, the post-war period will being about much re- vision and adjustment to this belief. And unless some of the license fees now being obtained by states, cities, counties, villages and hamlets are cut down, many machines simply won't be able to continue to operate. Everyone knows what this will mean to the future of this industry. This is the very reason why there is a tax commission at work in Washington at this time studying how best to lower taxation all over the nation. That is also why there has been a demand by the President to Congress that all taxes be cut immediate- ly after the war, so that free and private enterprise can once again come into being. And that is also why The Cash Box is urging this industry to create a National Tax Council to protect itself from rampaging tax bugs end bring them into line logically, by common sense reasoning, to prove to them that high taxation simply knocks out business colder than a dead fish and does not bring increased revenue. Uncle Sam learned the lesson of diminishing economic returns by overtaxing tho jewelry and fur industries. He is also learning more lessons each day in many other fields. He realizes that while this wer is on and wur workers pockets are lined with unusually high wages that he will continue to receive a goodly share while no merchan- dise is being offered for sale. But he is also shrewd enough to realize that once there is enough manpower available to again create competitive wage scales he will then have to revise his present high taxation program downward to take care of the lower wages the average worker will be earning. This strikes right to the heart of this coin operated machines industry. With less money in his pocket the average man is not a better customer for coin machines. Therefore, if taxes are high on the equipment of this industry, and earning power is less, the simple and logical answer is - a most complete halt to all profit for this business. And that cannot be disputed. But, if the men in this business continue to flash large rolls of bills, openly advertise tho fact that the equipment of this industry is bringing in t ruck loads of money, no politico in the nation can be convinced that this industry should not be taxed higher than it already is. And it is common knowledge that the majority of coimunities thruout the nation are severely overtaxing this industry - with demand for even greater share of coin machine income popping up in city councils, stato leg- islatures and village boards every day.