Evening star. [volume] (Washington, D.C.) 1854-1972, 1858-12-20
THE LOTTERY BUSINESS.


10 the lottery business in the United States
1ne majority OF the lotteries in the Unit. d
States claimed to be legal are located in three
states only-DelaEare, Maryland and George
Scnemes are also issued from Missouri and
hentucky, and drawings take place in those
states, but the great bulk of the business is
done In the three States first enumerated
There Is bnt one lottery in Georgia that was
established by law, the Sparta Academy
lottery, which was instituted in the year 1895
Tor the purpose of raising s., 900 wherewith to
build tie Sparta Academy. This charter was
afterwards acquired by Samuel Swan and Ben.
Jamin W ood, of New York -.
BY the act OF Incorporation, it was provided
that 10 per cent of the gross receipts should be
handed over to the State for the benefit Of thu
Academy Fund. and that all the balance of the
receipts, after the deduction Of q small margin
10 meet the fair expenses Of an economical
management, should be divided in prizes. AL.
tnough the Sparta Academy charter was
granted In 1926 only to raise the sum of
So'ooo' the State of Georgia has, up to this
Tune, received but 81 600 Of this sum, while
the two managers Of the concern Samuel Swan
ana Benjamin Wood, are reported to be worth
each more than half million of dollars ALI of
winch, or at least the great bulk of which, has
oee1 acquired by the Sparta Academy Lottery
scheme. These two men were lately indicted
for Illegal lottery dealing it being claimed that
the charter has expired; their trial was set
uoWn Tor last month, but they have secured
Po.tponement until next gear
The Green and Pulaski Monument Lottery
also In the State OfGeorgia. Its proprietors
were Gregory i Maury
There were fifteen lotteries in MARYLAND
which are now consolidated into Que. The prip-
clpal ones OF them were the Patapsco Institute
the Carroll County, the Pokomoke River
Maryland State, Washington County, BeI-Air.
cusquenanna Canal, and the Old Havana Plan
All these are owned by R. Franco 4 SON and
they all expire by special act of Legislature ON
the lst OF April, 1859. This firm also own the
expire in 1862
Messrs. Wood, Eddy Swan also own the
Delaware and Missouri lotteries, which. it is
said, they recently purchased from Gregory 4
Maury for Sl75OOO. So, it will be seen that
the entire lottery business in this country is in
the hands Of only two firms =
In the spring Of 1854 Messrs BENZ. Wood
and Samuel Swan called on two legal gentle
men OF the city Of Augusta, with the view of
, obtaining their opinion as to the legality Of a
contemplated purchase by them Wood c Coz
OF the Sparta Academy grant of 1926 from the
trustees They stated that they desired to be-
come the prOprletOrs Of that charter and to 90
on and draw the lottery themselves Thecase
was complicated one, it being a question
whether the act Of 1926, granting the Suarte
Academy Lottery privilege was annulIed or at
Iected by the subsequent act of 1888 The law
ysrs made a careful and extended examination
oi tAe case, and finally gave il as their opinion
tnat the purchase would be illegal and that
Il should be consummated by Wood & Co.,
and II they should 90 on and make drawings
under the grant, their whole proceedings wouId
DC unlawful, and they would be liable to have
tneir business broken up and TO suffer the Den.
atty OF the law, If ever the authorities chose To
proceed against them. Swan Wood. not con-
ten' WIN TINS, procured other advisers, and at
last determined to make the purchase and
carry on the lottery, relying either on the nom
interference OF the officers Of the law or on the
ability OF their learned counsel 10 bring them
on eIear oil damage IN case prosecution should
De instituted. The purchase was accordingly
Ihsus, ana the management Of the Sparta
academy Lottery passed from tie control of
tne State OF Georgia into the hands of Bepia-
MN Wood and Samuel Swan
For three years their business want an mos,
ProsPerOnsly, and the prOprietors became rich
men. They appointed two Commissioners to
superinted the drawings although the original
grant calls for seven. 1t is said fbev nav 1basa
two men, Mr. Leon p. Dugas and Fredey;ck z
barber: $500 year each. In the circulars Of
oWan CC-, a card appears signed by these
Two commissioners, testifying TO the fair and
honorable character Of the proprietors and
mat everything connected with the entire
ouslness Is carried on with the most s.runplons
ana exact integrity Appended to this card,
appears another signed by the Mayor and
postmaster OF the city of Augusta, and by an
ex- U D Senator, bearing testimony TO the in
.eshJ OF the Commissioners; so that, on the
lace OF the business every thing appears fair
and honestly conducted. We need hardly re-
marx that all this appearance Of fairness has a
great weight with the ublic in inducing them
TO invest their money in the lotteries
Eariy this present year, the Mayor Of New
1ork, who was eXeTting himself To put a stop
TO all the lotteries in the country took stems ,o
test the legality Of the Sparta Academy con
cerni that being the most extensive of any sin
gle one. Sergeant Birney was dispatched 10
the State Of Georgia, where he eventually sue
ceeded In procuring seven indictments for VIC
lation OF the lottery law OF 1853 agaips, each
one Of the following parties: Beni. Wood. SamI
evan and Geo Eddy, proprietors, and L. P Du-
gas and Fred c. Barber, Commissioners of
sparta Academy Lottery. The penalty for the
eacn Violation OF the law being not less than
5000, and, In default Of payment on oonvic.
uon SIX months imprisonment the affair was
serious one. The trial was to come on AT
Augusta on the 18th Of November, 1855. before
the Hon. Judge Holt. Col VIM A. MoL,vs
Attorney Gsneral Of the State, and ex-Judge
franes Ii Cone appeared for the peopie:
while the Hon. Alexander II. Stephens o. A
LOchrane, }. Miller, p. n. Smead and A Mi.
Ter were engaged for the defence Mr. Loeb
rane, the leading counsel for the defence I,ein,
tlek' the Judge continued the case till the Nav
term, 1859 my
Prosecutions have not yet been oomrar.s,
hRrs
there seems to be determination on the rar,
OF those who have begun the crusade to carry
il through.
The expenses Of the lottery business are
enormous, AS the managers food the country
vita cirealars and other publications. beside
advertising. The circulars are distribu,o3 -
"A extent unknown in any other business al
almost Incredible to those who are NOT Some
what acquainted with the workings of the sys.
tenn As many as 20 900 circuIn9s have b..n
dispatched IN single mail, and as thew are
sent in sealed envelopes and charged letter
postage, the postage that single cons;,,n.
ment would be 5000. Indeed, it is estimaIsd
that il costs 500 900 per year be.ide the
prizes, to carry on the Sparta Academy Lot;
tsry alone, great part Of which sum goes 10
the printers and for pos tage, and the rest i.
paid for rents, salaries of clerks and agents,
travelling expenses Of managers, and numerous
other unavoidable incidents