State ex rel. Downey-Farrell Co. v. Weigle

168 N.W. 385, 168 Wis. 19, 1918 Wisc. LEXIS 141
Wisconsin Supreme Court·Decided September 14, 1918·Published·Cited by 2 cases

Opinion

[25] The following opinion was filed June 19, 1918:

Eschweiler, J.

Ch. 480, Laws 1917, provides:

“Section 1747m. 1. No person, firm, corporation, or association within this state shall use, give, offer, issue, transfer, furnish, deliver, or cause or authorize to be furnished or delivered to any other person, firm, corporation, or association within this state, in connection with the sale of any goods, wares or merchandise, any trading stamp, token, ticket, bond, or other similar device, which shall entitle the purchaser receiving the same to procure any goods, wares, merchandise privilege, or thing of value in exchange for any such trading stamp, token, ticket, bond, or other similar device, except that any manufacturer, packer or dealer may issue any slip, ticket, or check with the sale of any goods, wares or merchandise, which slip, ticket or check shall bear upon its face a stated cash value and shall be redeemable only in cash for the amount stated thereon, upon presentation in amounts aggregating twenty-five cents or over of redemption value, and only by the person, firm or corporation issuing the same. . . .”

Immediately upon its passage the constitutionality of it was attacked in a proceeding in this court, and it was there held to be a proper exercise of the legislative power. Trading Stamp Cases, 166 Wis. 613, 166 N. W. 54. What was there held as to the evident scope and purposes of the act need not be here repeated.

The plaintiff contends that as packer or manufacturer of the oleomargarine its method of business is a proper compliance with the provisions of this chapter; that the three respective forms of coupons to dealers, clerks, and consumers are issued, within the language of the statute, when they are respectivély packed in the cartons and boxes at plaintiff’s place of business in Chicago before shipment. It also contends that the transaction, so far as it concerns the shipment direct to the jobber and receipt by him and redemption by it, through its intermediary the United Profit Sharing Company, of the so-called dealer’s coupon, is a [26] transaction of interstate commerce and beyond interference with or regulation by the state.

It furthermore contends that it may lawfully, under the statute in question, make the United Profit Sharing Company its sole and exclusive agent for the cash redemption of such coupons.

The defendant expressly disclaims any intention of enforcing the statute in question so as to in any way interfere with interstate business, but contends that both the issuing and redeeming of such coupons can only lawfully be done by a packer, manufacturer, or dealer who’ is within the state of Wisconsin; and secondly, that coupons such as are here under consideration, appearing on their face to be redeemable only by some third person, cannot be lawfully issued.

In view of the nature of the requirements of the federal law regulating the manufacturing and dealing in oleomargarine and the manner in which such product is packed and shipped, as appears from the facts in the record before us, we are satisfied that in the transactions between the plaintiff in this case and the jobbers within this state to whom shipments of the product are made in the boxes of original shipment the placing of the dealer’s coupon therein, entitling such jobber to a cash payment, and any redemption thereof, are all parts of one commercial transaction. Loverin & Browne Co. v. Travis, 135 Wis. 322, 331, 115 N. W. 829; F. A. Patrick & Co. v. Deschamp, 145 Wis. 224, 228, 129 N. W. 1096. Such shipments being from without the state, they are in the domain of interstate commerce and subject only to federal regulation; and therefore neither the defendant as a state officer nor this court has any power or right to interfere with, control, or regulate the issuing of such dealer’s coupons, the manner and form in which they are being issued and delivered, or the redemption thereof either by the plaintiff itself or by any third person whom it may designate. Such matters are of contract between the [27] shipper and the person to whom the shipment is made and not subject to state regulation. Greek-American S. Co. v. Richardson D. Co. 124 Wis. 469, 474, 476, 102 N. W. 888; Schollenberger v. Pennsylvania, 171 U. S. 1, 18 Sup. Ct. 757; Rosenberger v. Pacific Exp. Co. 241 U. S. 48, 36 Sup. Ct. 510.

There is no situation here of possible right of the state to inspect or regulate this article of commerce in order to' protect the health or morals of its citizens or of any feature which might bring it within the reasonable exercise of the police power of the state to prevent fraud. The rulings of the United States supreme court, therefore, upholding the right of states to control and regulate the sale of foreign securities, as in the so-called blue-sky laws (Hall v. Geiger-Jones Co. 242 U. S. 539, 37 Sup. Ct. 217), or the moving picture film censorship case (Mutual Film Corp. v. Industrial Comm. 236 U. S. 230, 35 Sup. Ct. 387), have no application here.

Considering the well known and general nature of . the business of a manufacturer or packer, which is well exemplified under the facts shown in this case; the aims and purposes of the statute itself as appears on its face; and from the declaration already made by this court with reference to it in the Trading Stamp Cases (State ex rel. Sperry & Hutchinson Co. v. Weigle), 166 Wis. 613, 166 N. W. 54, we are led to the conclusion that the word “issue,” as used in the final clause of the first subdivision of the section before us [séc. 1747m, Stats. 1917: ch. 480, Laws 1917], is intended to' permit and authorize a manufacturer or packer, such as the plaintiff in this case, whether within or without' the state, to place coupons such as we have here before us, but when redeemable in cash only and by the person so issuing them, within any original carton, packages, or boxes intended for original shipment, although such original packages may not be sold directly by him tO' the ultimate consumer.

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State ex rel. Downey-Farrell Co. v. Weigle, 168 N.W. 385, 168 Wis. 19, 1918 Wisc. LEXIS 141 (Wis. 1918).

168 N.W. 385 (State ex rel. Downey-Farrell Co. v. Weigle) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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