Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-01-09

ment touching II Is sounded. the more
apparent II becomes, we think, that
| the system Is obnoxious 10 sound busi-
ness principles. We do not question for
a moment that some OF our merchants
who have used the stampa. and desire to
continue to use them. consider that they
have been advantaged by Tie scheme and
regard this new method OF stimulating
their trade as good policy. But these
gentlemen have failed 20 meet the over
whelming objections to the system pre-
scented. not only by merchants who have
not, but by merchants who have tried
the STANDARDIZATION bearing as well
upon future as upon immediate business
conditions. The meeting held at the
Chamber OF Commerce TO consider the
anti-trading stamp bill now pending In the
/ General Assembly developed the fact
that the business sentiment of the COM
munity was largely in favor Of the las
| sage OF the bill. The measure was warm
| ~ advocated by both users and nom
users of the stamps and the action Of the
meeting ought we think, to remove from
the mind of the Legislature any doubt
that may have lodged there as to what
disposition should be made of the Dill
However. the bill does not appeal to the
Legislature merely as a local measure.
The anti-trading stamp movement Is not
confined TO Richmond. 1t has developed
strongly in other cities, notably In
Washington and Baltimore. and in the
former city the scheme has been the
subject of an adverse judicial decision.
The closing paragraphs Of this decision
we printed during the legislative recess,
but as many members of the Legislature
may not have had an opportunity TO
read them, and as they bear vitality on
the trading-stamp issue in more respects
than one. we requote them. They are as
follows
without the necessity Of declaring that
| the acts proved in this case constitute
the conduct Of a lottery or gift enter
prise. as those words are commonly I'M
derstood, or even Of finding that the
| element of chance operates Intentionally
and distinctively in the scheme of the
Trading Stamp Company, we think,
nevertheless, that they come within the
prohibition Of the statute. which. as be-
fore said. furnishes its own definition Of
gift enterprise
although one of the most shrewdly
planned of the many devices TO obtain
something for nothing, and one appa-
rently entirely novel, it could hardly have
come more clearly within the scope of
the statute had it been we'll known and
expressly in the contemplation OF Con-
gress at the time of the enactment.
1.-THE Washington Trading Stamp Com
pany and its agents are not merchants
engaged in business as that term is COM
monty understood. They are not dealers
in ordinary merchandise engaged In a
legitimate attempt 10 obtain purchasers
for their goods by Offering fair and law
full inducements TO traders. Their bust
ness is the exploitation OF nothing more
nor less than cunning device.
with no stock in trade but that de-
vice and the necessary books and stamps
and so-called premiums with which TO
operate 1t successfully. they have inter-
vened in the legitimate business carried
on in the District of Columbia between
seller and buyer not for the advantage
Of either, but to prey upon both. They
sell nothing to the person TO 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.
The merchant who yields 10 their per-
suasion does so partly in the hope of OBJ
tanning the customers of another, and
partly through fear of losing his own If
he declines. Again, a limited number
only Tan apparently necessary feature of
the scheme) are included in the list for
the distribution of the stamps, and other
merchants and dealers who cannot enter
must run the risk of losing their trade
or else devise some other scheme TO
counterfeit the adverse agency.
1.-The stamps are sold at the rate of 30
cents per hundred TO the contracting
merchants. and yet purport to be redeem
able with premium gifts at the assumed
value Of 81 per hundred.
Unless, therefore the so-called pre-
miums TO be distributed among the dill
gent collectors Of the stamps are grossly
overvalued, the scheme cannot maintain
itself; for in addition to the actual cost
OF the premiums. ii has to bear the cost
of the books and stamps and the main
terance of its office and exhibition-room.
IF it's premiums should have any fair
value, then the stamp company must in
eNlldblN rely upon the ldllulc Dl the pre-
sentation of tickets for redemption, by
reason of its requirement that not less
than 500 tickets-representi cash pur-
chases of $50. 90-shall be pasted in a book
and produced at one time to entitle the
holder to his premium. In this event.
the company, If il actually contemplates
making good its contracts. is relying upon
q lottery-that is TO say. the chances and
advantages Of its game, for its eXpecta-
lions of profit or gain.
There is. not a shadow OF rational
foundation for the stamp company's
claim that It confers a benefit upon buy
ers by procuring for them an actual dis
count. If its business We're continued
and its contracts faithfully performed.
it's inevitable result would be, as in all
unnecessary interventions Of third per-
sons or 'middle-meh' between producer
and consumer, an increase Of cost TO the
latter.
"rhe prohibition of such a scheme is
clearly within the power Of Congress.
within this District, and the statute
under which the prosecution has been
maintained makes ample provision fer
its exercise.
"1'he appeal of the defendant Lans-
burgh must abide the result Of his CO.
defendants. Their cases are inseparable.
Although regular merchant of the city
of Washington, he does not appear on this
record as convicted of the offence Of
Offering a discount premium, or a gift
to his own customers upon sales made to
them in the course of his business. and
l.. ,,,Iyn t1,.t axfa DE- 1,fc