Waite v. Press Pub. Ass'n

155 F. 58, 11 L.R.A.N.S. 609, 1907 U.S. App. LEXIS 4633
CourtCourt of Appeals for the Sixth Circuit
DecidedJune 26, 1907
DocketNo. 1,639
StatusPublished
Cited by12 cases

This text of 155 F. 58 (Waite v. Press Pub. Ass'n) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waite v. Press Pub. Ass'n, 155 F. 58, 11 L.R.A.N.S. 609, 1907 U.S. App. LEXIS 4633 (6th Cir. 1907).

Opinion

RICHARDS, Circuit Judge.

This case involves the validity of what is popularly known as a “guessing contest.” It was inaugurated by the publication, prior to the election to be held on November 8, 1904, for President of the United States, of certain advertisements by the Press Publishing Association, the defendant below, in which certain rewards or prizes were offered to those persons who, prior to such election, should submit to the Press Publishing Association the nearest correct estimates of the total popular vote to be cast for the office of President of the United States, on the day of the election, and at the same time should pay a certain sum as the subscription to the periodical named in the advertisement. The suit was brought to recover the sum of $10,000 offered for the nearest correct estimate, and the sum of $5,-000 offered for the second nearest correct estimate of such vote, the two persons who, under the terms of the advertisements, submitted these estimates, having assigned their rights to the plaintiff. The correct total popular vote cast for the office of President of the United States on the 8th day of November, 1904, was 13,525,595. On or about November 1, 1904, one John Ruf, Jr., a citizen of the state of Illinois, submitted to the Press Publishing Association, as his estimate, 13,-525,606, and along with it paid .the sum of $5, being his subscription to a periodical mentioned in the advertisement. On or about June 6, 1904, one E. T. Battrick, a citizen of the state of Ohio, submitted to the Press Publishing Association, as her estimate, 13,525,608, and along with it paid the sum of $2 as her subscription to a periodical mentioned in the advertisement. The estimate submitted by John Ruf, Jr., proved to be the nearest correct estimate of such total popular vote, and that submitted by E. T. Battrick the second nearest correct estimate, and, according to the terms of the advertisements, the first was entitled to the reward of $10,000, and the second to the reward of $5,000. Suit was brought by the plaintiff as assignee of the successful estimators, and was decided by the court below upon the statement of counsel for the plaintiff in which were embodied the foregoing facts. The court held that the scheme outlined, which provided for the distribution of large sums of money dependent upon the nearest correct estimates •of the total popular vote for President, was in the nature of a lottery,’ or gift enterprise against the policy of the laws of the United States, and in violation of the laws of Michigan.

Several years ago it was a doubtful question whether a so-called guessing contest was valid or not. Three Attorneys General of the United States (Miller, Griggs, and Knox), had, in formal opinions, sustained the validity of similar contests, and, following them, Judge Thomas, in the case of United States v. Rosenblum (C. C.) 121 Fed. 180, had refused to hold such a contest illegal, and had sustained a demurrer to an information against the president of a corporation then engaged in carrying on one. These rulings were in accordance with the trend of authorities in this country and England, the cases being [60]*60cited in the opinion of Judge Thomas (C. C.) 121 Fed. 182. The exception to be noted was the case of Hudelson v. State, 94 Ind. 426, 48 Am. Rep. 171, in which the Supreme Court of Indiana held that a-contest dependent upon the guessing of the nearest to the number of beans contained in a glass globe was a lottery or gift enterprise. The-cases which sustained the validity of the various guessing contests all: held that, since the correct number either did or would exist, more or less skill and judgment could be exercised in guessing it, and therefore the estimate of the nearest number to the correct one could not properly be considered a matter of mere chance. On the other hand, in-the Hudelson Case, the court, for the first time, drew attention to the-fact that, while the number of beans in the glass globe would be fixed and definite, the ascertainment of that number could be nothing other than a mere matter of guessing, for it was impossible under the circumstances to ascertain the information upon which a correct estimate could alone be made. Subsequent to the decision in the Hudelson Case came that of the Supreme Court of the United States in Clearing House v. Coyne, 194 U. S. 497, 24 Sup. Ct. 789, 48 L. Ed. 1092, and People v. Lavin, 179 N. Y. 164, 71 N. E. 753, 66 L. R. A. 601. In the Coyne Case, the court sustained a fraud order issued by the-Post-Office Department, directing the rejection of the mail of “The Public Clearing House” on the ground that it was a fraudulent scheme- and constituted a lottery. It is unnecessary to describe the details of the scheme; the facts will be found in the opinion. The court, speaking by Mr. Justice Brown¿ disposes of the matter by saying:

“The scheme lacks the elements of a legitimate business enterprise, and we think there was no error in holding it to be a lottery within the meaning of ■the statute.”

This case was followed by Pref. Mercantile Co. v. Hibbard (C. C.) 142 Fed. 877, decided by Judge Lowell.

In the Lavin Case, 179 N. Y. 164, 71 N. E. 753, 66 L. R. A. 601,. the scheme provided for the distribution of nfoney among those purchasers of certain brands of cigars who should estimate most closely the number of cigars of all brands upon which the government would-collect taxes during the month named. Discussing what constitutes-chance, Judge Cullen, speaking for the court, says (page 168 of 164 N. Y., page 754 of 71 N. E. [66 L. R. A. 601]):

. “‘It is strictly and philosophically true in nature andvreason that there-is no such thing as chance or accident; it being evident that these words do-not signify anything really existing, anything that is truly an agent or cause of any event; but they signify merely men’s ignorance of the real and" immediate cause. But though nothing occurs in the world as a result of chance, the occurrence may be a matter of chance to the observer from his ignoraneeof antecedent causes or of the laws of their operation.’ ”

The court refers at some length to the Coyne Case, 194 U. S. 497, 24 Sup. Ct. 789, 48 L. Ed. 1092, and reaches the conclusion that the scheme before it falls far within the requisites of a lottery as defined in. that case, under a statute very similar to the New York one. The two-cases referred to, the Coyne Case and the Lavin Case, are cited by Attorney General Moody in his opinion of November 28, 1904 (25 Opinions of Attorneys General, 286), as authority for the reversal of the [61]*61opinions of his predecessors holding that “guessing contests” were not within the prohibition of the federal statutes. The schemes presented to Attorney General Moody for his decision were dependent, the one upon estimates of the total number of paid admissions to the World’s Fair at St. Rouis, and the other upon estimates of the total vote cast for President in 1904. The conclusions he reached were as follows:

“Conceding that the estimates in such a contest (the World’s Fair contest) will be to some extent affected by intelligent calculation, the conclusion is, nevertheless, irresistible that it is largely a matter of chance which competitor will submit the nearest correct estimate.

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Bluebook (online)
155 F. 58, 11 L.R.A.N.S. 609, 1907 U.S. App. LEXIS 4633, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waite-v-press-pub-assn-ca6-1907.