An English Trading-stamp Case.

Manawatu Herald, 11 April 1899, Page 2

An English Trading-stamp Case.

The following summary of a recent " trading-stamp " case in the Old Country will be of interest to Wellington traders at the present time. At the t. .rmiag ham County Court ia Oc-

tober last H. W. Baird, trading as the Free Stamp Company, sued Frank Payne, grocer, to recover £6 damages for breach of contract. The defendant had signed the trading stamps agreement but after a few weeks' trial had thrown it over, under the plea that the company had not advertised as. fully as it should have done, and Payne put in a counter claim for l-reach of agreement. Counsel for the company, during the hearing of the case, suggested that Payne had been induced fr > throw over Iris pgrcement by the Birmingham Grocers' Association, which was actively opposing the trading stamp system, and which also was represented by counsel at the hearing of the case, which was tried before a jury.

Plaintiff, in his evidence, said that he had advertised in Birmingham by distributing 106,000 books in the city. He did not issue any wall but he put three of the cards marked " We give stamps " in over 800 shop windows. Unless a customer got a book full of stamps he did not get anything for it. If he got 900 stamps, and did not get the odd 90, that would be all profit to him (witness).

His Honour — Now I think I begin to see where the profit comes in. (Laughter.)

Mr Tanner, to witness — How much money do you get for the 990 stamps . — 990 farthings.

Your profit seems to be so large that you cannot calculate it. You get a furthing on every stamp f— Yes.

You commenced business in May ? — Yes.

You came from America ?— No. Where had yon been engaged in business previously ? — ln Liverpool. How many of these books have been presented for redemption during the time you have been in Birmingham ? — Not over eight.

Out of 76,000 . Do you mean to say that only seven or eight have come for the reward ? — Yes.

Are you sure about that ? — Yes. What value does each reward represent ? — Just such a value as the person who takes it attaches to it.

His Honour — Suppose a man came with his book and said — " Give me a present," and you showed him something, and he said " I dont like that, give me something else."

Witness — I should say — " Take anything in the shop that is offered for one book."

His Honour, in summing up the case, said that in his opinion the contract was not an illegal contract. It was not illegal, because it came from America ; it was not illegal because it was ingenious ; it was not illegal because, if it was worked out completely, the profits would be considerable. All that was idle. If the contract in itself was not illegal, tben if a sane, sober man entered into it he was bound to carry it out. It had been argued that there was another ground on which defendant was not bound to carry on his part, and that if the other party refused to do their part. That might be a very legitimate matter for a jury to exercise their mind upon, but it was plain that no evidence of breach of contract by the plaintiff had been alluded to by the defendant. Since the defendant had repudiated his contract, he was liable to pay damages. Counsel for the plaintiff had stated that the latter's minimun profits would be 40 per cent. Against this statement there had been no evidence adduced, and the amount of the damages was a matter entirely for the jury's consideration. The jury returned a verdict for the plaintiff with one farthing damages. His Honour gave no cost on the main case, but granted costs on the counter claim, which was not allowed.