The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-02-08
PREMIUM STAMPS
Court Considering Violations or
EvasiOns of Legislative Act.
'sAH but Three Topeka Mer-
chants Acquiesce in Law"

was recited today by Robert D. Gar
yer, county attorney, in the district
court in arguing against trading stamp
distribution by certain Topeka re-
/ tailers
Carver admitted that the old prac-.
tice of stamp companies in maintain
ing premium parlors had been dis
| continued. But, he contends that I'M
der a new cloak the evil at which
the legislature aimed in passing the
, antf-trading stamp act is still in ex-
| iStence in modified form. Out-of-
state concerns are still taking money
out of Topeka and the old spirit of
| getting something for nothing con-
tinues to be in evidence.
High salaried Topeka attorneys, at
| torneys from Wichita and other cities
represented Crosby Bros Co.. Sperry
! & Hutchinson Co. and the Surety Cou-
/ pom Co.. defendants in informations
filed against them by the state of
Kansas. Technicalities in the law
! and attorney fees-formed the basis
/ for their defense.
/ Because the law makes a proviso
! that merchants issuing coupons and
/ redeeming them in cash or in mer-
!. empt from the prohibitory exemption,
1.-THE attorneys declared their clients
were exempt from prosecution under
| the enactment.
Didn't Paxton & Paxton give the
stamps away in exchange for cash
Paxton & Paxton redeem these
! stampS?'
True, the Surety Coupon company
sold the stamps to Paxton & Paxton
and redeemed them from the mer-
/ chant. But hadn't the phraseology
| of the law been covered, the attorneys
| asked.
Much the same argument was used
| by attorneys representing Crosby
Brothers company and the Sperry &
he
ton of the stamp companies in mer-
cha1dise directly to the public had
been discontinued, in name, altho the
stamp companies were still furnishing
| coupons and redeeming those coupons
| to the merchants.
/ yet, it is still the old coupon COM
1 panies at whom the law aimed who
are operating" declared Carver. THE
/ intent of the law has not been car
/ ried out
"The scope and purpose of the law
said he, land the intent Of the legis-
/ lature, were to put the Ubiquitous
/ stamp yrafters out of business. In
| fact, with a few surprising and re-
grettabIe exceptions, 1t has accom-
plished that already. Every premium
| parlor in the state has been aban-
| doned, and the goods removed from
| this Jurisdiction.
All the Topeka merchants, except
three, I believe, acquiesced in the law,
|
sion, and quit the stamp business.
| Twenty-three merchants in Wichita
| promptly put themselves on record as
i lava hiding citizens, by disseminating
! the use of stamps, and entering INTO
a written compact to cut them out
! forever.
i .Under the persuasive influence OF
/ the stamp companies, two of our mer-
| chants were induced to enter into the
! Elusive and indefensibie schemes to
| eyade the law. The sole province OF
the court upon this hearing, is to
measure these contracts by the stand
ard furnished by the supreme court.
| A single sentence in Justice MaSon'S
| opinion conclusively shows the invalid
/ ity of the contracts attached to the in
| formations in these three cases:
| '~'The subject of the legislation is
the furnishing of star by one per-
son to be used by another.
Carver declared fatty that the in
tent of the law had been cheated. The
/ exemption had been for the purpose
of merchants to issue their own
| stamps and redeem them without pro-
/ 1ecting a middleman, namely the out
| of state coupon companies, into the
| game.
brag ged on the big salary paid to the
! president of the Sperry & Hutchinson
/ company. That salary is $4,000 a
year.
81 wonder from just whom they
/ get the mopey to pay such salary"
commented Carver.
/ The county attorney outlined the
history of the coupon companies in
Kensas-the adoption of coupon dis
tribution by certain stores, the refusal
/ to permit other establishments to ham
| die coupons, the monopoly it created.
the hatred it had engendered between
merchants, the spirit of getting some-
/ thing for nothing it fostered, the over
buying it encouraged among women
striving to get certain article by saw
| ing a large number of stamps.
/ Now they are getting their mer-
! chandise and other articles direct from
the merchants thru stamps still pur-
cha sed by the merchants from the
coupon companies" said Carver. 'It
is the same old coupon companies op-
Grating under a new system. ~
/ Carver went into "details showing
how the coupon companies and cou-
pom issuing companies are operating
at present
THE Sperrys & Hutchinson con-
tract with the Crosby company" he
said, provides for the payment by the
latter of $3.50 per thousand for stamps
I furnished. The stamp company agrees
] to pay the Crosby company 1925 for
every completely filled book of 1900
stamps which the latter may redeem.
| The stamp company therefore has a
net profit of rs cents per thousand on
ali OF the Stamps IuTIlSHeu, useO ana
/ redeemed, and $3.50 net profit on
| those furnished, but not redeemed.
Trade journals estimate the redemp-
ton of trading stamps at from so to IS
/ per cent of the output.
1.-The Surety Co.'S contract is the
same in its essential features. How
ever, that company retains the title to
the stamps, inserts in its contract a
| concealed and unconscionable self
perpetuating clause. and a rigid mo-
| nopoly> provision 1t also requires
| Paxton & Paxton to buy minimum
of 100000 stamps. or $3.50 for
| stamps that could be furnished by
| any printer in Topeka for a small
| fraction of that sum-"
Judge A. w. Dana and Judge George