Not all the news is bad.  Although the band organ (Wurlitzer, I think)
on the Hampton, Virginia, carousel sits silently while a boom box
plays, the Holyoke merry-go-round continues to use the real thing, at
least intermittently.  We moved away two years ago, but it alternated
between tapes and live band organ, repairing and repairing again.

You can probably find the organ on-line, or at least mentions of it.
It used to operate in Holyoke's Mountain Park, which closed years ago
and was razed for good a year or two back.

Jay Ducharme, who had been a ride operator at the park for a while,
has a good web site on the park, and right after we left the area, his
contribution to the Pictures of America series came out, giving the
history and fate of the century-old amusement park (originally built
by the trolley company).  They also sell CDs of the carousel organ.

Incidentally, Jay's site has other sounds of the midway.  He managed
to save the original tapes for the pirate attraction and the fortune
teller, and had both up on his site last time I was there.  (I just now
checked: he seems to have that and more, as well as other items of
interest.)  See http://www.karenandjay.com/mtpark/mtpark.html 

Kip Williams
Western New York