ILLEGAL LOTTERY.

New Zealand Herald, Volume LXVI, Issue 20426, 30 November 1929, Page 15

ILLEGAL LOTTERY.

FIRM'S ADVERTISING SCHEME

PENALTY OF TWENTY POUNDS.

" NOT VERY OBNOXIOUS."

[by telegkaph.—own correspondent.]

WELLINGTON. Friday,

An advertising scheme instituted by the firm cost the Stewart Hardware, Ltd., a fine of £2C and costs in the Magistrate's Court to-day on a charge of halving promised to dispose of property by lottery or chance. A plea of guilty was entered by Mr. W. H. Cunningham, counsel for the defendants.

Chief-Detective .Lopdell said that the scheme, although illegal, did not appear to be very obnoxious. The firm's publicity officer, with the full knowledge and consent of the manager, instituted and caused to be advertised a scheme whereby a promise was made that a refund of 50 per cent, of the purchase price of goods procured on a certain date during November would be made to holders of receipt dockets issued on a day to be known as "refund day."

To decide the day . to be known as refund day slips of paper, bearing numbers from 1 to 30. with the exception of 3, 10, 17 and 24, were folded and placed in a hat. Each number in the hat represented a business day in November. The manager at random drew out one slip bearing a number, and without examining the slip placpd it inside'an envelope and gummed the envelope down. The remaining slips in the hat wera burned immediately without examination.

The number in the envelope decided which day was to be regarded as refund day, and no person had had any possibility of knowing which of the 26 numbers referred to was in the envelope. The envelope containing the number was placed in the safe of a bank, with written instructions .that it was not to be opened until December 2, and then in the presence of a justice of the peace and the bank manager.

An elaborate half-page advertisement, chawing attention to the scheme, has been published, and a copy was gummed on the front window of the firm's shop in Courtenay Place. Receipt dockets were given to customers with the following words stamped on by a lubber stamp: "Keep this receipt. To-day may prove to be our half-cash refund day. Date published December 2, 1929." Mr. Cunningham said there appeared to be no doubt that the scheme was in contravention of Section 39 of the Gaming Act. The scheme had been born of the enthusiasm of the publicity manager. The firm, as a result of the prosecution, was in mid-air. The Act had been contravened, but at the same time the firm had made a promise to the public, and although it wished to do so it might be committing another offence by keeping faith with the public. Mr.. E. Page, S.M.: I think they can keep faith with the public and take the punishment now for the complete act. 1 think it unlikely that the police will prosecute the defendants a second time ior this action.

Mr. Page said it appeared clear to him that the operations of the defendants came within Section 39 of the Gaming Act.