The Providence news. (Providence [R.I.]) 1891-1906, 1905-03-24
TRADING
STAMP
HEARING

The Trading Stamp bills were the sub
ject of public hearing al the state house
today before the COMMITTEES on judiciary
Of the house OF representatives.
House bill 234. imposing a tax upon trad
ing stamps and similar devices was the
first taken UP. Clarence Aldrich speaking
in favor OF II for tts Merchants associa-
tom He said that companies formerly do
ing business in stamps have cleared OUT
ara made no provision 10 redeem them
whatever and IN fact would not redeem
them In other states
Suitable bond must he biven by conpan-
ies issuing stamps and must show up
their books 70 tho general treasurer.
In case license Is given the company
must provide itself with a sufficient GUAM
titv OF articles 70 be redeemed and keep
them on hand continually.
A deposit OF 10000 as security for pay
nnent Of any judgment ia required and a
tax OF 25 cents thousand is impossible.
Mr. Aldrich promptly stated that while
n prohibition OF Issuance OF trading
stamps was not constitutional II this
dose was given them and tho stamp com
panies died. no one Of us would be at the
funeral
Botn he and Col. Tillnghast admitted
that ten checks, cigarette and tobacco
coupons and all similar devises would be
efft cted by these bills which were mutual
ly dependant upon each other.
Mr. Calendar OF Calendar McAuslan
& Troup company said he was opposed
to trading stamps and thought that some
restrictive measure should he passed.
MERCHANTS OPPOSED
Senator Lyons Delauy said no was OPP
posed 10 the stamps and their use and
would favor legislation mat would pre-
vent or restrain their use.
Mr. Ross ~ Pawtucket, who fathered
the bills expressed his support Of them
and said they were all right and should
he supported
Mr. Gobeile Of Providence said he was
opposed TO stamps and other catchpenny
devices and said the whole tendency was
bad and away from the best interests Of
legitimate business.
Mr. Blanchard inquired n he was in
favor or against these bills as they allow
stamps IN n restricted rorm.
Col Frank TillinghaSt. TO remove mis-
apprehension said that while the wish
OF these men was TO frankly prohibit
stamps that IS unconstitutional but they
want 20 do the next best thing
In a facetious vein Mr. Crafts inquired
II tho stamps could not be required 10
he embroidered Mr.. Tlninghast said that
he could not pass upon the constitutional
ity Of the embroidery but he went on
10 say that the natural point Of the trad
ing stamp system was the coupon sys-
tenn. which provided for the redemption
~ the coupons at the store where is-
sued. There have been some amend
ments suggested. but as far ns can see
they are TO save the parent while the
chid ls killed
he said the bills should be passed IN
their entirety and not amended by pro-
visions of that sort
COUPON BONDS AFFECTED
In answer N a question of Ellerv VIII
son he said the effect OF leaving out
coupons from merchandise would make
very little difference 20 the business. but
Mr. Wilson differed with him on that
point
r. r. Ballou OF Providence said he had
experience In the matter pro and con. and
then announced that ne would like 20 see
tho trading stamp business restricted.
Mr. Fitzgerald suggested that broker
could not sell coupon bonds because they
had coupons" or similar devices as the
act provides.
general discussion ensued. IN which
Messrs Aldrich anil TilinghAs admitted
that trading stamps could not ~ re-
strained unless tho coupons we're also
Mr. Arthur a. Page. a practical trad
ihg stamp man. also spoke and referred
Z, the lawyers who once pleaded for the
trading stamp companies and were now
arrnycd against thCm lie referred 10
some of tho merchants who spoke ne
having given stamps and were still
opposed 90 the hill
lie said tho bills, N passed. would place
the oNi-tme trading premium companies
IN position 90 do business "a they could
give premiums direct
Judge Lee spoke against The bills and
the hearing vas adjourned until y m.
to be continued for the rest Of the after
noon.