The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-04-11
TRADING STAMP Bill.
HAS ITS FATAL
DEFECTS
go
Attorney General Declares in
Positive Terms That It Is
Unconstitutional But He
Has a Substitute Which
May Yet Be introduced.

Attorney General Douglas prohounces
the senate bill directed against the
trading stamp industry to be In viola
ton of both the state and federal con-
stitutions. This judgment he has ex-
pressed in explicit and positive terms
in an opinion furnished yesterday to
the judiciary committee of the house
of representatives.
The communication in which this
opinion is given reads as follows:
Hon. l.. c; Stevenson, Chairman Ju-
dietary Committee-Dear sir: Section one
of Senate File 1876 provides that:
Every person who shall sell or offer
for sale, any real estate or article of
merchandise of any description whatever,
or any ticket of admission to any exhibit
ton or performance or other place of
amusement with the promise, express or
manner hold out, the promise of gift or
bestoWal of any article or thing for and
in consideration Of the purchase by any
person of any other article or thing,
whether the object shall be for personal
gain or for the benefit of any Institution
of whatever character, or for any pur-
pose whatever. shall be regarded as en-
gagged in a gift enterprise.
In response to the inquiry Of your COM
mittee requesting my opinion as to wheth-
to say that, in my Judgment, it is in vioe
lation of both the state and federal con-
stitution: 1 understand the bill was cal
culated to make the trading stamp bust
ness as at present carried on in this
state. an unlawful enterprise, but its
terms are much broader. and it in sub
stance prohibits any tradesman from Civ
ing away or promising to give away any
article of merchandise as a part of a
sale;
ACTS identical or substantially identical
with THIS provision have been before the
courts of various states and have uni
formly been held to be unconstitutional"
Here are cited numerous authorities in
nj limo lfaf
of this state-State VS.. Railway CHI 6S
Mimi. 3S5-wherein the principle is dis
cussed where the issue involved other
transactions. Further the attorney general
1.-THE question involved was eIaborateiy
considered in each of the cases cited and
the decisions reported in the New York
and Massachusetts cases were written by
Judge Peckham and Chief Justice Holmes,
respectively, who are now associate JUS
tees of the supreme court of the United
States. Without assigning the reasons
winch guided the courts to the conclusion
above indicated, it is sufficient to say that
the, prohibitions adopted were not deemed
to be a reasonable exercise Of the police
power OF the various states, an offended
that provision of the constitution securing
to every individual certain. alienable
| 1.-The friends Of the bill have cited as
an authority in favor of the same the
case of Lanesberg. VS.. District of Column
bia, decided by the supreme court of the
district and reported in 18th Tucker, 512
An inspection of the statute, however,
under which the conviction was sustained
discloses. that it Is much narrower than
the bill before your committee. The pro-
vision reads:
'Eevery person who shall in any man
ner engage in any gift enterprise business
IN the district shall on conviction there
1.-The particular transaction presented
to the court which was held to be a vio-
| lation OF this provision involved an ele-
ment of chance, and therefore the
subject of legislative prohibition
In further response to a request made
by some members of your committee. /
have prepared and herewith transmit a
bill which believe if enacted into a law,
Will be held valid. 1t is designed to reg
ulate the business which 1t is urged was
sought to be prohibited by the senate file
under consideration. and is drawn along
different and narrower lines than the pro-
posed enactment. You will notice that it
is regulative as distinguished from the
prohibitive measure. and calculated to
prohibit fraud or imposition in the sale
| or Issuance of trading stamps or coupons
L am authorized to say that If YOUR
committee determines that this class of
legislation is wise. the governor will au-
thorize its Introduction as a substitute
for the bill under consideration"