Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-07-08

merchandise includes, in some stamp
firm catalogs, 1900 different items
anything from a waffle iron to a
Screwdriver.
The grocer or other retail dealer
pays $40 to SIS for 5000 stamps.
which are then theoretically given
away with every $500 worth of
merchandise sold. Although the
cost to the dealer is approximately
2 or per cent Of his gross sales,
the stamp firms claim that his
volume of business will increase by
20 to 40 per cent
One stamp firms circular de-
clared its services would assure
freedom FROM Destructive COM
petition, improbable and unstable
customers, bad will and insecurity"
In the Washington area. the
Metropolitan Retail Gasoline Deal
ers Association is one of several
groups opposed to the stamp prac-
tice.
The area gas dealers publication,
The Nozzle. has claimed that
nearby gas station operators are
"rebating at their own expense part
of the State and Federal taxes
paid by gasoline consumers. The
publication points out that. with
new gas taxes, dealer who sells
10000 gallons a month collects
about $4,000 in taxes per year and
pays up to 5000 for the stamps Gus
toners collect just from the tax
portion of their gas bill.
How Did 1t Happen?
Explanations for the phenomenal
growth of the trading stamp bust
ness are numerous. One theory re-
lateS the growth to the increase OF
supermarketS and corresponding
frightening of competition. The
Wall Street journal in June quoted
figures that in just over two years
the number of supermarkets has
risen by 33 per cent to a national
total of about $4,000.
In nearby Maryland and Vir-
GINA Montgomery and Prince
Georges Counties in Maryland and
Arlington and Fairfax Counties and
the cities of Alexandria and Falls
Church in Virginia., Census Blu
reau statistics on markets show this
trend, but with local variations.
Despite rising sales ($1.4 billion
in l948 to over So billion in 1854 in
total retail sales. and similar
rise in bookstore sales. the number
of bookstores has dropped during
the siX-year period from 1859 to
$3.50 in the entire Metropolitan
area of Washington. But, and this
is peculiar to the area, the 359-
store drop includes a 422-store drop
in the District alone. Offset by a
63-store increase in nearby Mary
land and Virginia.
The shift of trade to nearby
Maryland and Virginia began years
before the last IL months of trad
ing stamp growth here, but the
premium advocates argue that the
Districts stamp ban will accelerate
the exodus.
To date, arguments for repeal
of the stamp ban in Washington
have resulted in no moves for
change by the Commissioners. They
have indicated they will not spon-
sor such an amendment.
In nearby Maryland, within the
past two weeks, authorities said
they have been looking into" the
stamp business. In Montgomery
County, the inquiry has included an
examination of the Maryland law
which apparently requires stamp
firms to post $4,000 performance
bond.
While some dealers attempt to
combat stamp-laden competitors by
offering gifts ranging from mink
stoles to jeweled yo-yos, the stamp
companies, it is reported. are get
ting ready to use special stamp-dis-
pencing machines to speed up gro
Gerry store waiting lines.
Legal Snarls and controversy not
wlthStanding, the stamp trade mag
azine, Premium Practice, forecasts a
bright future for the business. The
publication in June declared:
There's no ceiling visible as yet"