The Glenwood post., 1915-10-09
An 0RA3Bao ~
004 xAW Uoo1 A24vJ

passed by the last legislature Affected
Aewspapers in contests such ~ many
have been in the habit of employing to
increase circulation. The following ar
tiele, written by Arthur A. Parkhur.t
of the Boulder Morning News aad Col
Orsdosn, and read before the annual
summer meeting Of the State Editorial
association At Glenwood a couple Of
weeks ago, will be of much interest ts
mere chants who have been in the habit Of
using trading stamps or other gifts to
Of the state:
nsss ~ Nsv oaft Law Aysly -
UsvUaSsu7
Circulation is the first concern of
every newspaper, because upon the ex-
tent of its circulation depends its sd-
vertising value. Upon the amount of
advertising a newspaper gets depends
its financial failure or success. Hence,
most newspaper proprietors have looked
VIII IANOf Ou COutc0tS anu klAt
enterprises to stimulate circulation.
The wisdom of such contests and
gift enterprises is beyond the scope If
this discussion. The legality of such
contests and gift enterprises is Of
prime Importance to us at this time bo-
cause of the gift enterprise law enact
ed by the last general assembly. This
law reads rs follows Uaws 1915, pags
335, section ~: "Ffom and after the
passage of this act it shall be unlawful,
in the state of Colorado, for any person
or persons to engage in any manner in
any gift enterprise business.
Section 2 makes it . misdemeanor,
penalty not to exceed 100000, or i'm
prisonment not over so days, or both.
As this law does not define a gift
enterprise, we must go farther back in
the statutes of our state for . defini-
tion. The law of 1905 page 24l, Mills
Annotated Statutes 1912, page 2O40),
says that a gift enterprise "applias
only to those giving the purchasers Of
goods, wares, and merchandise, a ticket
or coupon, stamp or trading stamp
which entities the purchaser to goods,
wares or merchandise, indefinite, unde-
scribed, uncertain or unknown to such
purchaser who receives such ticket, ETC.,
to the trading of such tickets for the
goods, wares or merchandise they call
for;-to the giving of such goods.
wares and merchandise to the holders
Of such tickets, etc., for the tickets,
ETC."
For the Interpretation Of gift enter
prise We must 60 to . decision Of the
supreme court, rendered in 1904.
The city of Denver had an ordinance
specifically prohibiting the giving
away of trading stamps with the pus-
chase of merchandise, certain amounts
of such gifts being redeemable in gifts.
A merchant of Denver, by the name of
Frueau6, had entered into = contract
with q trading company, whereby he
was to purchase the trading stamps,
give them to his customers, who, in
turn, could take them to . branch
store Of the trading company, located
in Denver, and receive certain gifts
for certain amounts Of stamps. The
gifts were on display in the store.
There was no chance or lottery con
nected with the enterprise. The de-
fendant was arrested on the ground
that he had violated the Denver city
ordinance, prohibiting gift enterprises.
The case was taken to the supreme
court and the court, in carefully con
sidered case concerning the question Of
lotteries and gift enterprises, held that:
(a) Such legislation is valid only
under the police power.
(b) The intent Of the constitu-
ton and laws is to prohibit such
enterprises Is "appeal to the
gambling instinct, and tend to cor
rupt public morals."
(c) A gift enterprise to come
within the purview Of the statute
must contain the element Of chance.
(d) A statute prohibiting gift
enterprises wherein the element Of
chance was not involved would, to
that extent, be an unwarranted as
sumption of power BY the legisia-
| ture and void.
(e) The elements Of lottery are
stated thus:
ny There must be purchase Of
right.
icy The right must be . contingent
~ The eentingsnt right must de-