The Montgomery advertiser., 1905-02-02
TRADING
 STAMPS WIN City Cannot Impose Pro-
 hibitive Tax. SUPREME COURT DECISION Montgomery City Council
 Loses Its Case. Ordinance Fixing License of s1OO on Merchants GivinE Away the
 Stamps is Nuilined--Jussice simpson's Opinion.

Trading stamps may float henceforth fn Montgomery without municipal in- reference
 The Supreme Court of Alabama yes terday completely nullified the ordi- nances of the Montgomery City Council imposing license of s400 on trading stamp companies operating in the city and $100 on merchants issuing them.
 The opinion which establishes the freedom of trading stamps in connec- ton with business enterprises and will generally prevent a prohibitive tax on stamp companies in any part of Ala bama was written by Justice Simpson.
 The Montgomery Council ordinance was assailed by counsel for William Kelly, of the city, who was tried and acquitted in the Montgomery City Court of giving away trading stamps in the Montgomery Drug Company's store on Dexter Avenue without taking out the license of $10o. The city ap- pealed from this decision to the Supreme Court which yesterday affirm ed the lower court.
 The opinion of Justice Simpson is a lengthy one, discussing fully the con- stitutionality of the ordinance.
 The Supreme Court reduced the con- tentions of the parties in the case to the proposition of whether the tax of the Montgomery Council was in the nature of a privilege tax or a license intended for police regulation.
 After citing many authorities and Supreme Court decisions of other States, the opinion concludes that the character of the trading stamp business is legitimate and useful line of trade which neither the State nor munici- pality can subject to police regulations with any color of raason
 The Supreme Court holds that the ordinance put an illegal burden on the merchants using the trading stamps. In this connection 1t was recalled that no legislative body can split up one enterprise of a person or corporation into several lines of business and privilige tax each.
 It is true that in many States drug gists are required to take out two licenses. one for selling drugs and another for the sale of intoxicating liquors. In these cases. however the governing bodies had right of police regulation over the liquor traffic. In the case of the issuance of trading staRps, the accompanying business, one of gratuity to customers, cannot be placed in the category subject to police l measures.
 If 1t be allowed the opinion of JuStlce simpson says, that an addi- tional burden may be placed upon a | merchant who choses to advertise his business by offering a mall gratuity to customers in the shape of these trading l stamps, it would be equally lawful to place an extra burden on one who ad- vertises his business in the papers or one who offers, out of his own stock, a certain gratuity to every one purchas- ing goods to certain amount. or one who erects a handsome sign in front of his store"
 It has been held in numerous other States besides Alabama that the trad ing stamp business is not a gift enter prise or a lottery
 The case of the city of Montgomery against J. E. Gamble, manager of the Trading Stamp Company Is still pend ing before the Supreme Court. In this case the city seeks to collect the $4O0 license tax imposed on the company
 It Is believed that the opinion of Justice Simpson practically covers the Gamble case and that its effect is a legal victory for trading stamps.