Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-12-07
TRADING STAN PS
Court Of Appeals Decides Their
Issue is Illegal.
UPHOLDs TEE LOWER COURT
A Severe Araignment in Justice
Shepherds Opinion.
BETWEEN BUYER AND SELLER

The Court Of Appeals this afternoon in
an opinion written by Mr.. Justice Shepard,
affirmed the judgment of the Police Court
in what Is known as 1.-The trading stamp
case" The opinion of the court, which was
an unanimous one, says that, although
most shrewdly planned. of the many de-
vices to obtain something for nothing, the
trading stamp enterprise could hardly have
come more clearly within the scope of the
statute prohibiting gift enterprises, had it
been well known and expressly stated in
the contemplation of Congress at the time
of it's enactment.
Further on, the court says 1.-The Washing
ton Trading Stamp Company and it's agents
are not merchants engaged in business as
that term Is commonly understood. They
are not dealers in ordinary merchandise
engaged in a legitimate attempt to obtain
purchasers for their goods by offering fair
and lawful inducements to trade. Their
business is the exploitation of nothing more
or less than a cunning device
With no stock in trade but that device
and the necessary books and stamps and
so-called premiums with which to opera tie
1t successfully. they have interviewed in the
legitimate business carried on in the Dis
trict of Columbia between seller and buy
er, not for the advantage of either, but
to prey on both They sell nothing to the
They pretend simply to act for his benefit
and advantage by forcing their stamps
UPON a perhaps unwilling merchant. who
pays them in cash at the rate of s. thou
rational foundation for the stamp COM
pany's claim that 1t confers benefit upon
buyers by procuring for them an actual
discount
The Case.
The case. it will be recalled, was insti-
tuted in the Police Court, where Joseph
A. Sperry. the manager of the Stamp Com
pany. and Gustave Lansburgh. local
merchant were convicted of violating The
statute prohibiting gift enterprises, they
having admitted participation in the trad
ing stamp scheme.
Thcy We're each fined 800 Whereupon
they appealed to the Court of Appeals,
where the cases were fully argued last
month, Mr.. A s. Worthington represent
ing the defendants and Messrs. S. T.
Thomas and A. b. Duvall appearing on
behalf of the District.
The readers of The Star are familiar with
the scheme and the prosecution of the de-
PENDANTS, and the Court CT Appeals says
that the defendants were lawfully convicted
of an offense clearly within the prohibitive
powers of Congress.
The plea of Mr.. Lansburgh that ne was
convicted merely of Offering a discount or
premium to his customers in the giving of
the trading stamps to them the Appellate
Court holds, is not disclosed by the record
in the case, and he must the court says
abide by the result OF his co-defendant's
conviction.
The defendant, Mr.. Lansburgh, the court
further says made himself the accomplice
of the other in an active way In the promo
ton of the unlawful scheme of the Stamp
Company.
The court holds that there was no error
committed in the case 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 Appeals
in criminal cases it's decision in the matter
is, therefore, a final one.