The Wichita daily eagle., 1897-12-30
GIFT ENTERPRISES
Decision Of Conrt of Appeals In the Trad i.
ing Stamp Case.


Decision OF Conrt of Appeals In the Trad.
ing Stamp Case.
The Washington Star Of December Z
contained the following:
The court of appeals this afternoon.
in an opinion written 10y Mr.. Justice
Shepherd. affirmed the judgment Of the
police court in what is known as "tle
trading stamp case The opinion OF
the court, which was a unanimous one,
says that, although most snrewd4y
planned of the many devices to gain
something for nothing. the trading
stamp enterprise could hardly have
come more clearly within the scope OF
statute prohibiting gift enterprises. had
1t been we'll known and expressly stat
ed al the time Of its enactment.
Further on the court says: The
Washington Trading Stamp company
and its agents are not merchants en-
gagged in business, as that term is COM
monty understood. They are not deaf
ers in ordinary merchandise engaged in
a legitimate attempt TO obtain purchas-
ers for their goods by offering fair and
lawful inducements to trade. Their
business is the exploitation OF nothing
more nor less tl1an a cunning device.
with no stock in trade but that de-
vice ard the necessary books and stamps
and so-called premiums with which to
operate II successfully. they have inter-
vened in the legitimate bushes. carried
on in the District Of Columbia between
buyer and seller, not for the advantage
81 either, but TO prey upon both They
sell n,thing to the person 10 whom they
furnish the premiums They pretend
simply to act for his benefit and advant-
age by forcing their stamps upon per-
haps unwilling merchant, who pays
them in cash at the rate OF S. per
thousand There is not a
shadow Of rational foundation for the
stamp company's claim that il confers
n benefit upon buyers by procuring for
them an actual discount"
The case, il will be recalled was tnsf-
tuted in the police court, wt1ere Joseph
A. SperYy, the manager Of the Stamp
company, and Gustave Lansburgh, To-
Cal merchant, were convicted of violat-
ing the statute prohibiting gift enter
prises. they having admitted particiFa-
ton in the trading stamp scheme.
They were each fined 800, whereupon
they appealed TO the court of appeals,
where the cases were fully argued last
month, Mr.. A. S. WoTthington repre-
senting the defendants. and Messrs. 5.
I. Thomas ard 4. B. Duval appearing
on behalf Of the district.
TIE readers OF the Star are familiar
with the scheme and tEls prosecution OF
the defendants, and the court OF ap-
peals says that the defendants were
lawfully convicted Of an offerse clearly
within the prohibitive powers OF con-
greSs.
The plea of Mr.. Lansburgh that ne
was convicted merely of offering a dis
COUNT or premium to his customers IN
the giving of the trading stamps TO
them. the appellate courts holds. is not
disclo.ed by the record in the case, and
ne must, the court says, abide by the
result OF the co-defendant's conviction.
The defendant, Mr.. Lansburga, the
court further says. made himself an ac-
complice OF the other IN an active way
in the promotion Of the unlawful scheme
OF the Stamp company.
The court holds that there was no er-
rof committed by the police court and
that the judgment below must, there
fore, be affirmed AS there Is no appeal
from the judgment of the court Of ap-
peats in criminal cases, its decision in
the matter Is. therefore. a final one
Here you have the stamp fake in a
nutshell after being thoroughly siftei
through the courts. The Eagle has in
tefested itself in the matter in the inter
est of both the merchant and the buyer
for their protection. All schemes os
every imaginable kind that are proposed
started or worked in the eastern towns
and cities are reported 10 newspaper
trade journals. devoted especially TO the
interest of newspaper publishers. The
Fourth Estate Printers Ink
''Proffta ole Advertising" Brains" al
have contained articles and comnuni
cations from correspondents all over the
eastern country about the stamp busi-
ness, and without single exception, it
has been failure. Every merchant in
the city. ana they are very largely in
the majority always, VINO Is not IN the
deal. viii at once meet any price that
the stamp merchant will make. In
some cities they pay back the s2me per
cent that the stamp man gives you
stamp for in cash. In some cities the
merchants, instead OF cash or stamps.
display in their .tores articles as gifts.
In these two ways the merchant and
customer gets the benefit, instead of an
outsider who has a little heap OF cheap I
plated ware, or something OF no value,
10 give you for your stamp after you ac-
cumulate a certain amount. The ex-
plotting Of the scheme in this city has
not become a reality yet Among the
first approached on the proposition was
tie Eagle. with a promise Of a fct Of JOB
printing and extensive bill OF adve-tis-
ing for its approval of t-1e scheme, 50