Count w of the Complaint alleges that Respondent knowingly seeks the remittances of money through the mails as a result of the further distribution of the promotional materials made by Respon- dent's participating members at its express direction. Count 3 alleges that Respondent is conducting a lottery or scheme for the distribution of money by chance through the mails. In its timely filed Answer, Respondent denies all of the above allegations. Both parties were represented by counsel and afforded full opportunity to be heard, adduce relevant evidence, and examine and cross-examine witnesses. Respondent is The Big Green Money Machine, Inc., P. O. Box 1838, Morristown, Tennessee 37814.
Respondent obtains money representing club dues through the mails at that address.
New members of the organization are recruited by existing members by means of a printed brochure. In addition to the brochure, each prospective member is given an application which includes a list of seven existing members. New members are also given the option of joining the organization without participating in the recruitment of new members. A also receives four more identical brochures. When the latter people become members and receive their membership materials from Respondent, a will be No. 6 on the list, and B. C. D, and E will occupy the No. 7 position on their respective cards.