Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-11-09
Trading Stamp Company's Manage
in the Police Court.
GIFT ENTERPRISE Law VIOLATED
He and Gustave Lansburgh Fined
500 Each by Judge Scott.
THE CASE APPEALED

The first legal blow against the trading
stamp scheme carried on In this city was
struck today in the District branch of the
Police Court, when Judge Scott ruled that
Joseph A. Sperry. manager OF the Wash
ington Trading Stamp Company. and Gus
tave Lansburgh. OF the firm of Lansburgh
Brother, were guilty of conducting a
gift enterprise business. in violation Of Sec
tion l117 of the Revised Statutes. having
relation to the District of Columbia. At the
s, question of Assistant District Attorney
Pugh, the court imposed a fine of 800
each. with thirty days in jail I'm default
Notice of a writ Of error was gwen, and
later the defendants furnished real estate
bonds in the sum of $500 each, pending a
further hearing of the case before the Court
of Appeals of the District. An effort is 70
be made TO have the matter made special
i'm the higher court, so that a final determi-
nation of the issue may be expected within
thirty days.
What Mr. Pugh Says.
Although no additional prosecutions are
to be brought under section HI unit, an
opinion in regard thereto is handed down
by the Court of Appeals, record is to be
kept by the prosecuting authorities of all
merchants doing business under the trad
ing stamp scheme. In the event that the
Court of Appeals sustains the ruling of
Judge Scott. so Assistant District Attorney
Pugh stated to a Star reporter this after
nocn. every merchant who in the mean
time engages in the trading stamp scheme
VIII be liable to prosecution under the
statute, and so far as Mr.. Pugh now
knows will be brought into court.
trading stamp scheme is a gift enterprise
business, and, therefore, in violation of
and contrary to section 1l11 of the Revised
Statutes. having relation TO the District
of Columbia" said Mr. Pugh. "It is my
intention to prosecute 10 the extent of my
ability and the power vested in me as spe-
cial assistant district attorney all offenders.
II am morally certain that the Court of
Appeals will uphold in every particular the
law that covers this matter. OF course,
every merchant who gives to a customer a
trading stamp tomorrow or the next day
OF the day after that will be clearly guilty,
under the ruling of the Police Court judge
today, and they should bear that fact in
mind, for when the statute is declared to
be valid by the Court OF Appeals, 1 am
certain it will be, they will very likely find
themselves in court as defendants. To my
mind, the trading stamp scheme falls clear
ly within the scope of the gift enterprise
statute, and the contention of the defend
ants who figured in the case decided today,
1 think, will not stand for a moment in
the higher court
The Test Case.
The case in which Judge Scott today
made a ruling and i'm which Messrs. Sperry
and Lansburgh figure as. defendants, was
brought particularly to test the law. AS
sistant District Attorney Pugh late yester-
day afternoon notified Mr.. A. S. Worthing-
ton, attorney for Mr.. Sperry, to appear in
court today with some merchant who is
engaged in the trading stamp enterprise,
to be jointly charged with violating the
statute. Mr.. Lansburgh was the person
selected. Mr.. Pugh then dreE up the fol-
lowing information:
THAT Gustave Lsnsburgh and Joseph A.
Sperry on the LIST day of November, in
the year AID. one thousand eight hundred
and ninety-seven. in the District OF CO.
lumbia, and in the city of Washington,
and on divers other days and times he
tween the said LIST day of November ard
the 9th day of November. in the year aiore-
said and place Aforesaid dad then ana
there engage in the business of a gift en-
terprise contrary TO and in violation of
section one thousand one hundred and
seventy-seven of the Revised Statutes, hav-
For the sake of form Precinct Detective
Hartigan of the sixth precinct was named
as the officer i'm the case
Before the opening of proceedings in
court Mr.. Pugh and Mr.. Worthington con-
ferred with Judge Scott
Mr.. Pugh explained that the prosecution
was brought to. test the law, and Mr..
Worthington requested that conviction
be noted and a nominal fine be imposed.
in order that the case could be taken to the
Court of Appeals.
Pleaded Not Guilty.
Messrs. Sperry and Lansburgh were ar
raigned on the information. and both
promptly pleaded not guilty. Mr.. Pugh Of
fered in evidence the agreement entered
into between the Washington Trading
Stamp Company and Lansburgh & Bro,
and also a pamphlet furnished by the
company to customers in which to paste
the stamps. Both were admitted by Mr..
worthingtoa to be what was claimed by
Mr.. Pugh.
Attorney Worthirgton then moved the
court to rule that section 11dt Is unconsti-
tutional and IL il should be constitutional,
the defendants have not been guilty of an
act that would bring them within the pur-
view of the statute.
Mr. Pugh read the statute, as follows:
Every person who shall I'm any manner
engage i'm any gift enterprise business IN
the Police Court, On Information filed for
and on behalf of the District, pay a fine
rot exceeding 81, 600 or be imprisoned in the
District jail not less than one nor more
than six months, or both. in the discretion
of the court"
Judge Scott promptly overruled the mo-
ton, and Attorney Worthington excepted
TO the ruling. AS stated, fine of 500 each
was imposed, and notice of a writ of error
was given.