State v. Underwood

71 So. 513, 139 La. 288, 1915 La. LEXIS 2099
CourtSupreme Court of Louisiana
DecidedOctober 18, 1915
DocketNo. 20329
StatusPublished
Cited by3 cases

This text of 71 So. 513 (State v. Underwood) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Underwood, 71 So. 513, 139 La. 288, 1915 La. LEXIS 2099 (La. 1915).

Opinion

Statement of the Case.

MONROE, C. J.

Plaintiff ruled “Charles A. Underwood, doing business under the name of Southern Merchandise Exchange; Charles A. Underwood, Proprietor,” into court, alleging that he is, and has been since June 1, 1913, “engaged in the business of a dealer in trading stamps, in the city of New Orleans, issuing trading stamps to merchants or dealers, without having paid * * * a license tax,” and praying that he be required to show cause why judgment should not be rendered against him in the sum of $5,000, as the license tax for the year 1913, with interest, etc., and why he should not be enjoined from conducting his business until the tax shall have been paid.

The proceeding is founded upon so much of Act 47 of 1904, amending and re-enacting section 15 of Act 171 of 1898 (the state license law), as reads:

“For every trading stamp company, and all other dealers of every kind whatsoever, issuing stamps to merchants or dealers, where the gross annual receipts are more than $200,000, the license shall be $10,000; where the said gross annual receipts are $150,000 or more, and less than $200,000, the license shall be $7,500; where the gross annual receipts are $100,000 and less the license shall be $5,000.”

Defendant denies that he is engaged in the business described in the statute, and alleges that his business consists of the sale or barter of various articles of merchandise which are sold to the public, generally, for cash, or exchanged for coupons or premium tokens, or the like, having a money value; such coupons or tokens, issued by any reliable concern, being so received in exchange for merchandise, and the value thereof being afterwards collected from the original issuers. He sets up the further defense, in the alternative, that as applied to his business the statute relied on contravenes the state and federal Constitutions, for certain reasons, which he specifies.

On the trial of the rule, there were but two witnesses examined, the defendant and another called on his behalf. The testimony of the other witness is wholly unimportant; that of defendant is disingenuous. We gather from it the impression that, although he may be, or may think he is, in a position to swear that he is not the agent of “The Hamilton Corporation” (a New York trading stamp company), and that he has no other connection with that company than as a receiver, purchaser, or collector, barterer, and vendor of its stamps (or “coupons,” as he prefers to call them), and although his primary object in establishing himself in New Orleans is, no doubt, to make money for himself, he nevertheless came here in April, 1913, under an agreement with the Hamilton Corporation, and some time in June opened [292]*292a store at No. 608 Canal Street, in the name of the Southern Merchandise Exchange; Charles A. Underwood, Proprietor; and, as it appears to ns, the principal basis and means through which he expects to succeed in the business that he is there conducting is the promotion and development of the business of the Hamilton Corporation. He admits that that corporation is his surety for the rent of his store, under a lease for three years at $300 a month, though he testifies that he does not know the name of either its president, secretary, or treasurer. There was exhibited to him a full-page advertisement, in a New Orleans daily newspaper of June 29, 1913, containing illustrations of furniture, musical instruments, toilet articles, etc.; also what purports to be a reproduction of a “Hamilton Coupon,” and reading, in part, as follows:

“Here’s the Magic Money That Buys These Valuable Premiums.
“Hamilton Coupons.
“They are Packed with Popular Goods. You Buy Every Day. You can Exchange Them for Valuable Premiums Right Here in New Orleans.
*##*** *** “You are invited (Buy the Goods 25 Hamilton couto call and in- Listed Below.) pons free. You
spect these pre- (................) are invited to
miums. You can (................) visit the Ex-
then appreciate (................) change at 608 Ca-
the wide variety (................) nal St., and you
of high- grade (................) will be presented
merchandise you (................) with twenty-five
can obtain by (................) (25) complimen-
saving your(................) tary coupons,
Hamilton c o u- (................) with which to
pons, w h i c h (................) start your collec-
come packed with (................) tion, a complete
goods you use (................) list of goods with
daily. (................) which Hamilton
....................(................) coupons are
....................(................) packed, and a
....................(................) beautiful illus-
.................... (................) trated catalogue
....................(................) showing the pre-
....................(................) miums you can
.................... (................) obtain in ex-
.................... (................) change for your
....................(................) Hamilton cou-
.................... (................) pons,
“The Southern Merchandise Exchange, 608 Canal Street,
“Charles A. Underwood, Proprietor. “The Store That’s Different.”

And he gave the following testimony concerning it, to wit: '

“Q. I show you a page advertisement, dated Sunday mornin'g June 29, 1913, * * * and ask you to look at this line and state whether or not this was put in there by you? A. No, sir. Q. You had nothing to with it? A. No, sir; I had nothing to do with it. Q. Can you account for its appearance? A. I presume the Hamilton Corporation of New York did it. Q. I notice the words at the bottom of the advertisement, in large type, ‘The Southern Merchandise Exchange, 608 Canal Street, Charles A. Underwood, Proprietor. The Store That’s Different.’ Does that refer to your store? A. Yes, it must. Q. What is your connection with the Hamilton Corporation of New York? A. None whatever, except that I buy goods from them, the same as other merchants. Q. Simply the relation of buyer and seller? A. Yes, sir. Q. You are not an agent of the Hamilton Corporation? A. No, sir. Q. You do not handle their coupons? A. Yes, sir; I buy them of them. Q. What do you do with them when you buy them? A. Exchange them for hundreds of other kinds of coupons. Q. You are in the coupon business? A. Yes, sir. Q. You buy and sell these coupons? A. I sell all kinds of coupons, including the Hamilton, not to people, but to manufacturers. Q. If any one comes into your store and asks for twenty-five free coupons, do you inquire whether or not he is a merchant? A. No, sir. Q.

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Bluebook (online)
71 So. 513, 139 La. 288, 1915 La. LEXIS 2099, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-underwood-la-1915.