Abstract: An electrically operated shop towel vending machine for dispensing a clean shop towel only in response to the proper input of the satisfactory dirty shop towel which is inspected as to length, strength, texture and/or bulk. The input section comprises an inspection mechanism which employs a continuous chain on which a towel is hooked passing beneath an inspection wheel which operates a sprocket and measuring chain only in response to proper actuation of the wheel to activate electrical switches indicating that a proper towel has been inserted. The delivery section of the machine comprises a continuously moving pickup conveyor which delivers the towel from a pile of towels to a transfer roll which employs an arrangement of card cloth patches with the needles projecting in predetermined directions in cooperation with a transfer belt and a discharge roll to separate and shed more than one towel so that only one towel is discharged from the cabinet past an electric eye or photocell to stop the machine.