Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-11-06
THE TRADING STAMPS
Prosecutions Are to Follow if Their Use is
Persisted In.
Mr.. Pugh the Subject-Efect OF
The Evening Stars Publication
of the Law.

The publication in The Evening Star yes
terday of the laws governing gift enter
prises in the District of Columbia and pro-
kibiting them in any shape or form, under
a penalty of fine not exceeding $1,000 or
imprisonment in the District Jail not less
than one nor more than six months, Great
ed CONSERVATION among the merchants and
other business men in Washington who en-
tered into contracts with the Washington
Trading Stamp Company to give Up five
per cent of their gross cash receipts for
the purpose of giving stamp collectors the
chance to secure some article offered by
the Trading Stamp Company for 500 of the
stamps issued by it. Many of the persons
who unthinkingIy entered into a contract
to use the stamps We're very glad that The
Star had exposed so thoroughly the illegal
ity of the practice.
They had already com menced TO find that
the demand for the stamps was becoming
a mania with customers. and that. instead
of being called upon TO pay three or four
or five dollars a week for the use of the
stamps. the increasing demand imposed up
on them the expenditure of several times
that much.
Contracts Are Invalid.
The publication in The Star caused many
Of these merchants to make inquiries as to
whether they would he compelled to carry
Trading Stamp Company, when the law
quoted made it so evident that they were
engaged in an illegal business. Eminent
lawyers joined in the opinion that no con-
tract il valid where party to it is COM
PEELED to break the laws in order to carry
il out.
The warning II The Star was so complete
and advantageous that those who persist in
the practice OF giving trading stamps will
probably find themselves confronted with
prosecution Many inquiries were made at
the Police Court today in the clerks office
as to whether persons giving out trading
stamps were liable to he prosecuted. but to
all inquiries the answer vas returned that
the law spoke for itself and no opinion
could be given on the subject of probable
prosecution
Open Violation of the Law.
Speaking of the matter again today Mr.
James L. Pugh. jr.. special assistant attor-
ney for the District, OH duty at the Police
Court, minated in an unmistakable man.
ner 10 Star reporter that unless the trad
ing stamp gift scheme was Immediately
abandoned the violators of the law govern
ing il would he vigorously prosecuted
The trading stamp scheme is an open
and notorious violation of law" said Mr.
Pueh. land I commend The Star for taking
such firm stand against the enterprise
and warning the public. The trading stamp
Is nothing less than gift enterprise and
plicit'
What will be the mode of procedure in
the event that prosecutions are instituted?'
MIR. Pugh was asked.
1t is my duty, replied Mr.. Pugh, ito
issue a warrant at the request of any cit
lien Who presents to my satisfaction
prima racie case l do not consider that
any further warning is necessary or
proper II any merchant continues to vio-
late the law. as l have before stated, he
VIII be promptly and fully prosecuted the
same as applies to offenders against other
laws and regulations
A Legal battle Imminent.
1t is understood that Immediately upon
the issuance of The Evening Star yester-
day representatives of Sperry & Hutch
inson, in charge of the Washington Trading
Stamp Company in this city sent full in
formation of The Stars Developments to
the members of the firm in New York and
that a legal representative of the concern
reached here this morning for the purpose
OF examining the case ana making a fight
II need be when prosecutions are COM
menced- The law, however, is so explicit
that there does not seem to be any posi-
billty OF its being broken with IMMUNITY
and a persistence in the disregard of it will
lead. II is said, if need be, to a battle of
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