Eastman v. Armstrong-Byrd Music Co.
Dissenting Opinion
(dissenting). Though the music company may not have been conducting a lottery or gift enterprise, still, if its scheme was clea,rly fraudulent, the postal authorities were right in denying the use of the mails, though the wrong reason was given at the time. I think it obvious that deception was at the foundation of the scheme, and that it was designed and well calculated to induce general correspondence and an expenditure of time and labor without the compensation or “reward” that would be expected from the wording of the advertisement. Such things are to be judged by their natural effect upon those whose reliance and action are invited, especially when that effect is designed; and we are not called upon to follow the authors into a nice construction of a shrewd arrangement of words. For example, a promise of a fine engraving of Washington may not be made good by a two-cent postage stamp. Here it was said: “Everybody will be rewarded.” More than 6,000 persons responded, and, when the time of fulfillment came, the rewards beyond the first 105 were so conditioned as to be practically worthless. There was more than a lack of ethics; there was a defrauding.
“As is manifest, people were to be led into the dealing by the delusive apparatus of a promise known to be false when made.” United States v. Moist.
The expense, time, and labor of each, though relatively small, are •enough for the law to notice.
Opinion of the Court
This was' a suit in equity by the Armstrong-Byrd Music Company, a corporation engaged in the purchase and sale of pianos and other' musical instruments at Oklahoma City, Old., against H. G. Eastman, the postmaster, and John L. Graham, the assistant postmaster, at said city. An injunction was sought and obtained forbidding the defendants from refusing the plaintiff .permission to mail certain letters, and defendants appealed.
It appears that the H. P. Nelson Company, of Chicago, was aiding in this project, and one of its employés, L,. M. Chaney, was in actual charge of it and wrote this advertisement. When the time for filing answers had expired, and on or about May 10, 1912, the judges selected to determine the contest met to determine who had furnished the neatest correct solution. These judges consisted of the presidents of two banks and the vice president of a third, all of Oklahoma City. When they assembled, there were about 6,500 answers. Of these the vast majority were filled out on the original advertisement. Some were on separate papers; but a number were very unique in design. Some
It appears that, after the adoption of the Penal Code, section 499 of the Postal Laws and Regulations was so amended as to correspond with section 213 of the Penal Code, which is as follows:
“Sec, 213. No letter, package, postal card, or circular concerning any lottery, gift enterprise, or similar scheme offering prizes dependent in whole or in part upon lot or chance; and no lottery ticket or part thereof, or paper, certificate, or instrument purporting to he or to represent a ticket, chance, share, or interest in or dependent upon the event of a lottery, gift enterprise, or similar scheme offering prizes dependent in whole or in part upon lot or chance; and no check, draft, bill, money, postal note, or 'money order, for the purchase of any. ticket or part thereof, or of any share or chance in any such lottery, gift enterprise, or scheme; and no newspaper, circular, pamphlet, or publication of any kind containing any advertisement of any lottery, gift enterprise, or scheme of any kind offering prizes dependent in whole or in part upon lot or chance, or containing any list of the prizes drawn or awarded by means of any such lottery, gift enterprise, or scheme, whether said list contains any part or all of such prizes, shall be deposited in or carried by the mails of the United States, or be delivered by any postmaster or letter carrier. AVhoever shall knowingly deposit or cause to be deposited, or shall knowingly send or cause to be sent, anything to be conveyed or delivered by mail in violation of the provisions of this section, or shall knowingly deliver or cause to be delivered by mail anything herein forbidden to be carried by mail, shall be fined not mor'e than one thousand dollars, or imprisoned not more than two years, or both; and for any subsequent offense shall be imprisoned not more than five years. Any person violating any provision of this.section may be tried and punished either in the district in which the unlawful matter .or publication was mailed, or to which it was carried by mail for delivery according to the direction thereon, or in which it was caused to be delivered by mail to the person to whom it was addressed.”
Attention is called by the defendant to the fact that section 213 of the Penal Code provides that there shall be excluded from the mails any letter, package, postal card, or circular, concerning any lottery, gift enterprise, or similar scheme offering prizes dependent in whole or in part upon lot or chance.
While it is true that, if the scheme be a lottery, gift enterprise, or similar scheme, it is not necessary that it shall be determined wholly by chance, but if it rests upon a determination in whole or in part by chance it is sufficient, yet it must be first a lottery, gift enterprise, or similar scheme, and even then the word “chance” is not used in its broadest signification. Originally there was considerable controversy as to the legality of life insurance policies because the ability to ma-' ture them was dependent upon the number of lapses, and it was contended that, as the number who would thus lapse was a matter wholly of chance, the policies were invalid, but it has uniformly been held otherwise. So the giving of trading stamps, so called, is not a lottery, although the system is dependent on how much the purchaser buys at some future time as to what article he can obtain from a trading company. State v. Caspare, 115 Md. 7, 80 Atl. 606; State v. Felzer, 115 Md. 7, 80 Atl. 614; City and County of Denver v. Frueauff, 39 Colo. 20, 88 Pac. 389, 7 L. R. A. (N. S.) 1131, 12 Ann. Cas. 521; State v. Shugart, 138 Ala. 86, 35 South. 28, 100 Am. St. Rep. 17; Ex parte Drexel, Ex parte Holland, 147 Cal. 763, 82 Pac. 429, 2 L. R. A. (N. S.) 588, 3 Ann. Cas. 878; Ex parte West, 147 Cal. 774, 82 Pac. 434; State v. Dalton, 22 R. I. 77, 46 Atl. 234, 48 L. R. A. 775, 84 Am. St. Rep. 818; Young v. Commonwealth, 101 Va. 853, 45 S. E. 327; People v. Gillson, 109 N. Y. 389, 17 N. E. 343, 4 Am. St. Rep. 465.
In McDonald v. Pacific Debenture Co., 146 Cal. 667, 80 Pac. 1090, it was held that, where the defendant promised to pay certain debentures in accordance with a given table, the plan had no such element of chance or hazzard as to make it a lottery.
In Lauder v. Peoria Agricultural & Trotting Society, 71 Ill. App. 475, it was held that, where the lots in a subdivision were of equal value, one who bought a lot not described, but the. exact lot was to be determined by a citizens’ committee on fair grounds, the purchaser was bound by the contract.
In People v. Fallon, 152 N. Y. 12, 46 N. E. 296, 37 L. R. A. 227, 57 Am. St. Rep. 492, it was held that where parties paid an entrance fee for their horses in a race, and the association from its own funds offered a prize, this was not a lottery. See Delier v. Plymouth County Agricultural Society, 57 Iowa, 481, 10 N. W. 872.
In Quatsoe v. Eggleston, 42 Or. 315, 71 Pac. 66, where, for the purpose of advertising a certain piano, the plaintiff agreed to furnish 3 of the instruments and 5,000 tickets, one to be given with each 25-cent purchase, each holder to have one vote for each 25-cent ticket thus issued to him for a society, church, school, lodge, or person, and the
“The awarding of the pianos, which are proposed to be given away as an advertisement, is not made by chance or lot, but by the affirmative, conscious act and will of the holders of tickets obtained with goods purchased at the defendant’s store.”
In our opinion the postmaster was erroneously advised that this enterprise was a lottery, and none of the authorities cited by the attorneys for the appellant, chiefly Public Clearing House v. Coyne, 194 U. S. 497, 24 Sup. Ct. 789, 48 L. Ed. 1092, Brooklyn Daily Eagle v. Voorhies (C. C.), 181 Fed. 579, State v. Shorts, 32 N. J. Law, 398, 90 Am. Dec. 668, People v. Lavin, 179 N. Y. 164, 71 N. E. 753, 66 L. R. A. 601, 1 Ann. Cas. 165, and Stevens v. Cincinnati Times-Star Co., 72 Ohio St. 112, 73 N. E. 1058, 106 Am. St. Rep. 586, seem to us to have any weight to the contrary, and the cases cited in the supplement to the brief by Judge Goodwin do no.t seem in point.
In United States v. Samuel E. Moist, 231 U. S. 701, 34 Sup. Ct. 255, 58 L. Ed. -, decided on January 5, 1914, some of the questions here- involved were sought to be presented to the Supreme Court, but for the reasons there indicated that court failed to pass upon them.
The decree of the District Court is affirmed.
Reference
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- EASTMAN v. ARMSTRONG-BYRD MUSIC CO.
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