Mr. WOLVERTON. In other words, the obligation that you have already said that you would observe if you were a public officer you make qualifications to as a citizen? Mr. SCHULTZ. If that is the meaning you have given to my statement, you are correct. Mr. WOLVERTON. That is what the meaning of your statement was to me. Mr. SCHULTZ. All right. Mr. WOLVERTON. I hope and with this I conclude the day never comes when any considerable number of citizens will feel so little respect for the laws of their State that they would not feel obligated to observe them. Mr. BECKWORTH. Are there any other questions? If not, thank you very much, Mr. Schultz. Mr. SCHULTZ. Thank you for your patience, your time, and your consideration. Mr. BECKWORTH. We have with us a witness, Mr. Harry J. Batt, who is president of the National Association of Amusement Parks, Pools, and Beaches, from New Orleans, La. At this time we shall permit Mr. Batt to proceed. STATEMENT OF HARRY J. BATT, PRESIDENT, NATIONAL ASSOCIATION OF AMUSEMENT PARKS, POOLS, AND BEACHES, NEW ORLEANS, LA. Mr. BATT. Mr. Chairman and members of the Interstate and Foreign Commerce Committee, my name is Harry J. Batt, representing the National Association of Amusement Parks, Pools, and Beaches as its president. My residence is New Orleans, La. This association, with headquarters in Chicago, represents the majority of the outdoor amusement park industry of the United States. I believe I can safely say that if the aggregate investment of all members of our association were pooled, it would be representing nearly $1,000,000,000 of invested capital. I believe that annual payments to labor employed in our operations is $250,000,000 a year, and besides paying in a large measure to our national income taxes, our business operates on volume and caters principally to the man of the street, the everyday worker, the people who make America the great democracy that stands as a bulwark for peace in the world today. There should be no reason for my appearance here today representing an industry that has had no ties whatsoever with the gambling element, and it is with pardonable pride I appear before you today, to protest the inaccuracy of Senate bill 3357 and H. R. 6736 which unwittingly goes beyond the bounds of the intention of that proposal. It is my understanding that the Federal Bureau of Investigation and the heads of the Department of Justice, in answer to the clarion call of the great mayors of the United States, desire to deal firmly, without equivocation, with the harsh problem of so-called slot machine racketeering and syndicated gambling as such, in its effect on our great Commonwealths. In that endeavor, we salute the sponsors of corrective legislation in dealing with such problems. But to reach the end desired, this proposed legislation as now written, and if passed, will seriously affect the outdoor amusement park business. The amusement park business consists of furnishing wholesome and pleasant amusement and entertainment to the middle and working class of people throughout the United States. The operators of these parks, pools, and beaches are entirely independent owners scattered from east to west and north to south of our country, without holding company ownership or domination. The merry-go-round and grabbing for the brass ring of your youth is still the keynote of good wholesome features in our parks. Under the provisions of this proposed legislation, this catching of the ring and the receipt of value in a free ride would be a violation of the Federal law. Do we wish to snuff out the innocent fish pond game which has delighted the hearts of children for generations? This among other similar types of games that are found in every outdoor amusement park midway as well as State and county fairs, where such amusements are offered, are certainly not participating in rackets and vice. Our amusement parks have remained a wholesome entertainment medium through the years, and are contributing in a large way to the elimination of juvenile delinquency by attracting the family as a group to our parks. Certainly, gentlemen, you would not intentionally place our industry in the same category with the elements which this Senate bill 3357 and H. R. 6736 is aimed at. Therefore, the members of this association feel very strongly that the present proposed bill should be amended, but in order that we may be clearly understood, we approve the major objective of this bill, whereby the evils of the slot machine are entirely eliminated. In closing, on behalf of the industry I represent, and by action of its executive committee, we respectfully request your committee to amend the Senate bill 3357 and H. R. 6736 whereby you may more carefully define the term "gambling device" as to eliminate, if found necessary, the slot machine and the transportation thereof in interstate and foreign commerce. I thank the committee for the privilege of being heard. Mr. BECKWORTH. Mr. Batt, the other day Mr. Bye testified here with reference to certain fairs. It is my understanding an amendment was prepared and submitted which he feels would take care of certain of these fairs and carnivals and the problems they would face as a result of this legislation. Have you seen that amendment? Mr. BATT. I did. Mr. BECKWORTH. Would that take care of the kind of problem you have? Mr. BATT. I think it would. I think it was copied after the act of 1941, is that right? Mr. BECKWORTH. I am not exactly sure of the source. Mr. BATT. The present act involves taxing $100 on the various machines and $50 and $10? Mr. BECKWORTH. I think that probably is it. But it is your under standing that that would likely meet the problem to which you refer? Mr. BATT. I am rather certain it would. Mr. O'HARA. Mr. Batt, there is one point that is not clear to me. You operate what is called the merry-go-round, is that right? Mr. BATT. That is a flying horse or carrousel. That is a riding device that has been used, I suppose, for a century or more, sir. Mr. O'HARA. In what way, if any way, is it connected with gambling devices? Mr. BATT. It is a mechanical device. If, in the catching of the brass ring, you give the child or party catching the brass ring a free ride, you would be giving them the value of something, and very exact interpretation of the Senate bill 3357, according to my interpretation, I would say that you are receiving the value of something and you violate a Federal law. Mr. O'HARA. What I was trying to get at was just what the operation was, so that we would understand it and have it in our minds. Mr. BECKWORTH. That is all, Mr. Batt. Thank you very much. Mr. BATT. Mr. Chairman, since completing my statement, I have been given the opportunity to read the amendment to which the chairman referred, and which was submitted by Herbert W. Bye, attorney for clients engaged in or connected with the outdoor show business, and I approve of the amendments. (The amendments referred to appear following Mr. Bye's statement.) Mr. BECKWORTH. At this point in the record, I should like to insert the following communications: A letter from Mr. Edward W. Welliver, of the American Trucking Associations, dated May 2, 1950. A letter from Nathan Cohn, of the Western Showowners Association, dated April 27, 1950; The prepared statement of George Jenkins, dated May 4, 1950; Statements by Robert E. Webb, for the National Carloading Corp.; Roland Rice, for the Association of American Railroads; Thomas J. McCloy, for the National Veterans Council; and the reports from the Federal Trade Commission, dated May 1, 1950; the Interstate Commerce Commission, dated May 2, 1950; and the Department of State, dated April 28, 1950; and May 3, 1950. (The communications referred to are as follows:) Mr. ELTON LAYTON, AMERICAN TRUCKING ASSOCIATION, INC., House Interstate and Foreign Commerce Committee, MY DEAR MR. LAYTON: S. 3357, to prohibit the transportation of gambling devices in interstate commerce, meets with the approval of this organization except for one very minor detail. Section 5 makes it unlawful "to manufacture, recondition, repair, sell, transport, possess, or use any gambling device in the District of Columbia * In each of the cases described by these seven verbs, except in the matter of "transport" the party so doing could not help but know that the object in interest was a gambling device. But suppose that some device or other was handed to a truck or rail operator in Chicago, for transportation into the District of Columbia, and that it was crated. If the actual article carried should be termed a gasoline pump on the bill of lading, but in reality should be a slot machine, the carrier, no matter how innocent, would have violated the law. Knowledge as to what he carried should be a prerequisite to guilt in this case. Therefore, I wonder if you will be so kind as to advise the committee as to this oversight, which can easily be cured by striking the word "transport" before the word "possess", and the word "or" after the "possess", insert a comma after the word "use" and insert immediately thereafter the phrase "or knowingly transport". This would prevent any possible miscarriage of justice, which might result from the other verbiage. Very truly yours, EDWARD M. WELLIVER. WESTERN SHOWOWNERS ASSOCIATION, HOUSE COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, House of Representatives, Washington, D. C. GENTLEMEN: It has been brought to my attention that Senate bill 3357 is being heard by your committe on Thursday and Friday, May 4 and 5. I would like at this time to file this statement in opposition to said bill. This organization represents the carnivals and circuses on the west coast, their employees and concessionnaires. Senate bill 3357 could be interpreted in such a manner as to prevent the interstate commerce of many concessions which travel with carnivals. These concessions, while not gambling concessions, could in some instances come under the provisions of Senate bill 3357. Carnivals provide relaxation, employment, and income, consequently it would be detrimental to a great number of people and business concerns should this bill be passed. They provide a great amount of income for such organizations as the Shriners, the Sciots, and other fraternal groups. Carnivals provide income for fairs, veterans organizations, fraternal groups, fire departments, churches, and hundreds of organizations which use carnivals as a means of raising money for worthy causes. Carnivals are a mode of entertainment which is enjoyed by the entire family. Fathers, mothers, and offspring go to carnivals together to enjoy clean, healthy entertainment. The family can be entertained as a unit thereby advancing family ties. Hundreds of carnivals travel throughout the United States. These shows all pay taxes, their employees own homes, pay rents, and live in all of the States during the off season, or winter months. Many shows own their own winter quarters and employ men and women in their shops the entire year. When a carnival plays a town the show patronizes local hotels, restaurants, stores, etc. That show purchases its supplies from the local butchers, bottling plants, garages, printers, bakers, etc., and uses the local banks, repair shops, laundries, barbers, and other places of business. The show pays local licenses, rents lots, uses utilities, and usually plays under the auspices of a local group, adding to that organizations treasury. The show hires extra help in each town giving local men employment. Without carnivals small fairs would have nothing with which to draw people. The carnival is necessary to the color and excitement needed to entertain at all fairs and celebrations. Americans have millions of dollars invested in carnivals and they pay millions of dollars per year in taxes to the United States Government. This bill, was I understand, introduced to prevent the interstate movement of slot machines. I do not appear for or against slot machines as carnivals do not carry them, but I am asking that the bill be so amended so as to exempt carnival and circus devices from this bill. Should this bill pass in its present form, many American citizens will loose lifetime savings and thousands of American citizens will be put out of work. Thank you for your consideration and I trust that you will amend this bill so as to prevent this unnecessary injury to the outdoor amusement industry. Very truly yours, NATHAN COHN. STATEMENT OF GEORGE JENKINS, VICE PRESIDENT, LION MANUFACTURING CORP. amusement games such as coin-operated pin-ball games, coin-operated bowling games, coin-operated consoles, which are a form of slot machines. From time to time we have also been engaged in the manufacture and sale of coin-operated beverage dispensers. We have made coin-operated devices continually during the last 20 years with the exception of the war period, when all of our efforts were devoted to war production and in which period our company secured Army and Navy E awards. We have large investments in machinery and equipment that have been placed in jeopardy by the proposed legislation. The jobs of almost 2,000 workers in our plant and subsidiary plants are also at stake, as well as the jobs and investments of many distributors, operators, and location owners and their employees throughout the country who derive income from our products. I must first say that our company is most confused by what is intended to be covered by the definition appearing in the suggested legislation. We cannot ascertain whether it is intended to cover all coin-operated products such as our pin-ball games and bowling games. Based upon our previous experiences, the reference to "anything of value" would be subject to many different interpretations. There are a substantial number of court decisions throughout the country holding that the free play games that are made available as part of the amusement features of pin-ball games are entirely legal. I would like to call your attention to the case of Washington Coin Machine Association, et al., v. Callahan, et al. (60 App. D. C. 106, 48 F. (2d) 1016). I would like permission to read just one sentence from the Washington Coin Machine Association case: "The decisions of the courts of the different States determining what character of 'slot machines' are and what are not gambling devices are far from uniform, nor are they always helpful in the problem we have because of the diversity of statutes under which they are applied." I am not a lawyer but realizing that the above decisions and many other decisions find free play games to be legal and also realizing that there are other cases that hold free play games illegal, I do not know how we could reach any positive conclusion as to the legality of all our coin-operated devices. I might add that one of our distributors at one time gave us a copy of an opinion by the Minnesota attorney general which pointed out that * *The decisions of the supreme courts of various States are divided on the question as to whether the allowing of a right to a so-called free play constitutes the return of a thing of value so as to make such operation a lottery or a gambling transaction. * When you consider the tremendous burden that would be upon us in attempting to draw fine distinctions the courts cannot always agree upon, it must be apparent that the proposed definition is unworkable. I might also give another simple example of the problems that we would be confronted with if either the Johnson or Preston bills ever became law. We were recently refused a license by the commissioner of licenses of Chicago on one of our bowling games because the commissioner apparently believed that such game might possibly be used for gambling and therefore within the prohibition of a city ordinance. After taking the matter to the courts, we succeeded in securing an injunction permitting the use and operation of such game throughout the city of Chicago. We sincerely believe that the definitions of the proposed legislation would be subject to numerous and varied interpretations. Again referring to the definition, I wonder how many of you gentlemen happened to notice the article in Friday, April 28, 1950, Washington Times-Herald referring to the Solicitor of the Post Office Department in connection with fish derbies having stated, "It is the position of this office that although skill is undoubtedly present in fishing-in the selection of one's equipment and the place to fish, in the handling of one's equipment, et cetera-yet the size of the fish caught is a matter of chance." Therefore, isn't the rod and reel a mechanical device upon which the fishermen may be entitled to receive something of value? We would like to call to the committee's attention that the four Supreme Court of the United States decisions referred to by Mr. Preston as being definitive of a thing of value are unknown to us and certainly we in the industry and our attorneys would be aware of any such decisions and we do not think the committee should expect or take for granted that such definite legal interpretations exist when they do not. I think that every member of this committee during the course of the discussion last Friday became fully aware that the present definition can be subject to innumerable different constructions. |