Evening star., 1898-12-06
VERDICT OF ACQUITTAL
Alleged Gift Enterprise Declared to Be Not
Contrary to Law.
Statement Made in Court by Mr..
Harry King. the Defendant
Judge kimbaIi's Decision.

Today in the Police Court Judge Kimball
| heard the charges against MIR. Harry King,
| proprietor of Kings Palace who was ac-
| cused of conducting gift enterprise by
| Detective Baur last month. Attorney Leon
| Tobriner. who represented Mr.. King, ad-
| mitted the facts alleged by the District and
! had Mr.. King make a full explanation of
| the system under which he gave the
| stamps.
Prosecuting Attorney Pugh said that the
| case was brought in order to test the law,
| and all he wanted was the courts decision
in the case. Judge Kfmban heard the evil
dence, and then decided that Mr.. Kings
| manner of conducting business was not a
| violation of the so-called gift enterprise
law. Under the courts instruction, the
| jury returned verdict OF not guilty.
COunsePs Statement.
! When the case was called to the atten-
| ton of Judge Kimbal Mr.. Tobriner said
| Mr.. King, proprietor of Kings Palace. IS
| charged with conducting a. gift enterprise.
| He said he would admit that his client
| was owner of the store during the time
| charged.
Does this case involve questions decided
by the Court of Appeals in the stamp
| case?' Judge kimball asked
| Yes. sir" MI Pugh answered.
We rely upon that decision" remarked
| Mr.. Tobriner
| And SO does the District" added Mr.
| Pugh.
| Mr.. Pugh made his opening statement to
the Jury, calling attention TO an advertise
| ment IN a morning paper. He said he
pected to show that at the Defendants
| places of business stamps were given with
purchases. These stamps. he said, We're
made good for certain presents and the
exact manner in which the business was
L
| evidence.
| Mr. Tobriner remarked that the stamps
| given We're not the stamps of a company,
| but of this particular firm only The
| stamps, he said represent discounts on pur-
| ChaSeS.
Detective BauT was the only witness for
| the prosecution. He testified that the 14th
| Of November he called at Kings Palace
and purchased a box of collars He asked
| if books and stamps were given, and the
| clerk who waited on him gave him a book
and several stamps.
| This closed the case for the District
Mr.. King Testffies.
| Mr.. King the defendant in the case ex-
| planned to the jury that he has two stores,
one at Si2 and Sl4 7th street and the other
at SO Market space. In his stores. he said
he handles everything that is to be found
| in department store. Witness said he
! did not purchase his stamps from COM
| pahy, but they are owned by the firm De
| fendant explained that the stamps are Civ
| en- in the nature of discount, one stamp
| being given for each tcn-cent purchase.
| No additional charge is made on articles
| He said he iraugurated the system for the
purpose !I3t,s OF, Of charging his business
| Why did you adopt this manner of busi-
ness?' asked counsel.
L adopted 1t as the easiest and best man
ner of conducting the business" Mr. King
| answered. In this way every purchaser is
| mis- own bookkeeper."
He explained that some merchants Ise
| the premium cards. ard showed the cards
| Under this plan, he said, the cards are
purchased, and each punch shows the
amount of the purchases made. Defendant
| produced one of the cards referred to- and
| counsel read ii to the jury. These pre-
MUM cards, he said, have been in use for
many years In addition to this plan he
! said, there is another plan of giving pres
| euts, which is carried on by some of the
| tea companies. Counsel also read these
| tickets, which showed the manner in which
| they are used. MIR. King said that instead
! of using tickets in this way he adopted the
stamps
Cross-Examination.
On cross-examination defendant said the
stamps are given in consideration of pur-
| chases a discount.
What does the discount amount top
| Mr.. Tobriner asked.
Five per cent"
The stamps in use. witness said he had
stamps of a local company that went out
of business because of the decision in the
other case. The stamps. he repeate are
owned by his firm exclusively. II is neces-
safy, he said, for purchaser TO get 800
stamps IN order to get one of the gifts.
The Judges Decision.
Counsel expressed a willingness to sub
briner making motion that the court in
struct the jury to find for the defendant
This motion was granted. Judge KimbalI
charged the jury that what Mr.. King had
done was not a violation of law H read
from the decision of the Court of Appeals
in the Trading Stamp Company's case to
show the distinction the upper court made
between case of a company not actually
selling goods but dealing in stamps and
merchant who actually sells his own goods
and gives stamps or tickets to his custom
ers In order to increase his trade
on the one hand, the decision pointed
out, merchant is virtually driven into
Joining the stamp company in order that
he may not lose his own trade, as we'll
to get additional trade. There is nothing
about Mr.. Kings manner of doing business
that the court could find was contrary to
the provisions of the law.
Premium Cards.
The judge cited the premium cards used
by some merchants and the tickets given
by some of the tea companies that had
been In vogue many years.
THAT it was not intended to apply to
ordinary discounts for cash, or in propor-
ton to amounts of purchases when made
by the merchant himself to his customers
may be regarded as certain read the
court from the decision referred to- And
the exercise Of such power would doubtless
be denied, If expressly attempted
Further on the court read from the deci-
SION:
The Washington Trading Stamp Com
pany and its agents are not merchants en-
gagged In business that term is common
ly understood. They are not dealers in or
Ginary 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 Il cunning de-
vice.
This decision the court held clearly ex-
planned the law in the case before the court
today, and the jury was thereupon instruct
ed to return verdict of acquittal.
Why HnmiIiate the Nations.
From the New York Herald.