The Washington herald., 1911-01-04

The Supreme Court yesterday. In an
opinion by Associate Justice Hughes.
denied a writ of habeas corpus to Walter
]. Gregory. convicted under Federal
statute in the Police Court of the Dis
trict of Columbia. forbidding gift en-
terprises.
Gregory was conducting a trading
stamp business. He was arrested and
fined for violating the statute forbid
ding gift enterprises. He applied for a
writ Of habeas corpus to the United
States Supreme Court.
eral statute under which Gregory was
convicted to be valid and that there was
no denial Of justice.
The trading stamp question had been
dormant in this city for many years.
and until the early part of last year.
when, through the corporation counsel,
Edward H. Thomas. and his assistant.
William Henry White. a prosecution
proceeding was instituted in the Police
Court. In that case the court. by Judge
Alexander r. Mullowny. sustained the
validity Of the trading stamps. the Dis
trict attempting to show that the Unit
ed States statutes under which the pro-
ceeding was instituted were valid and
Constitutional.
Two Defendants Named.
That case was directed against two
defendants-the Sperry & Hutchinson
Co. a large New York corporation do
ing business in most of the large cities.
and the Economy Voucher Company, a
local concern. This case. by a statement
OF facts agreed upon by both sides, was
taken to the Court of Appeals Of the
District by writ Of error.
The case was there argued at great
length by both sides. and the court, by
all opinion rendered by Chief Justice
Shepard. reversed the findings Of the
Police Court, holding that the prohibi-
ton within the statutes referred to were
valid and constitutional, and that. there
fore. the trading stamp business, as con-
Quoted by both the defendants. was un-
lawful and should be prohibited within
the District of Columbia.
Thereafter the defendant companies at
tempted to get the Supreme Court of the
United States to review the decision Of
the Court of Appeals by means Of
writ Of certiorari. This was denied by
the Federal tribunal. Then the mandate
OF the Court Of Appeals went back to
the Police Court, ordering 1t to reverse
its findings in accordance with the deci-
sion of the last-named court which re-
suited in the prosecution Of the Sperry &
Hutchinson Co.
Manager IL Jailed.
The manager. Walter J. Gregory. was
fault of which to be incarcerated in the
District Jail. The latter course was adopt
ed in order that a writ Of habeas corpus
might be obtained in the Supreme Court
where the case went for the second time
upon this branch Of the law, applying for
the right to make application for the
said writ of habeas corpus. pending which
Walter ]. Gregory w4ssout on bail.
Briefs were filed by both sides. the case
was argued at length and yesterday the
opinion of this court was rendered
through Mr.. Justice Hughes. The opin-
ion held in substance that the only ques-
ton before the court in considerat Of
the habeas corpus proceedil 9, was
whether or not the act IN question was
constitutional and whether or not the in
hibition therein contained was within
the power Of the Federal Congress to en-
act, the opinion of the court being that
it was within the power of Congress and
that thereby the court affirmed the juris-
diction Of the lower courts which had
convicted the defendants.
Maurice d. Rosenberg, who was private
counsel for nearly 400 business houses in
the District, when seen last night stated
that the opinion terminates the right of
any trading stamp companies to do busi-
ness in the District of Columbia under
the system as operated by the defendant
in the above case.
Says Business Was Hurt.
THE system has generally been regard
ed as more or less burdensome on the
merchant" said Mr.. Rosenberg, for. so
long as it was in vogue. the unwilling
merchant. in order to compete, was also,
in behalf of his business, obliged to be-
come a subscriber. For this reason pri-
vate counsel was retained to represent
ehinterests of the merchants, to q con-
tinuance of the system referred to.
THE elimination Of the trading stamp
usiness in the District will undoubtedly
result in a great benefit to the merchant
and a corresponding benefit to the con-
sumner, because it relieves the merchant
of the element of expense ncssitatd by
subscribing to tn system referred to, and
which should rebound to the benefit of
the customer"
case in the Court Of Appeals Of the Dis
trict Of Columbia reference was made to
the high cost of living. and that 1t was in
the interest Of public policy that courts
should. within their constitutional rights.
prevent the operation of any unlawful
business which tended to- an increase in
the cost Of ordinary commodities. have
no doubt that in other jurisdictions where
the courts have permitted the trading
stamp companies to operate that statutes
similar to those in force In the District
Of Columbia will be enacted containing
the prohibitions referred to. and which
were yesterday upheld by the highest