New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1866-11-03
LOTTERY DEALERS COME no GRIEF

LOTTERY DEALERS COME TO GRIEF.
RAID UPON THB OUTSIDE DRALERs-wHoLSsALB
ARREsTs-THB POINTS AT EXPERIMENTATION
OF ONE OF THE ACCUSED.
II has been question with great many connected
with the lottery whether the Internal Reenue laws
licensing lottery dealers did legage the ba" is very
evident that such was the intent Of the fmcs 81 the law
1t vas simply intended by that recognize ecs in exist
BY State authority permission businesses de Jao
and was no part of the intention OF liz mer to give any h.
gal status these businesses hut smpy 20 regard ein where
however sealnst any I, % ~ 90 rriI tb nr
yous law AZ relation TO by stFsn the words
without having obtained license to Do end hen
thereof the words paving the sprc tax therefor
Section III Of the internal Reenue Laws wh eaacs that al
uupeOrs managers agents OF oiteTlc ana all lottery
ticket deaergI shall pm tax OF i've PEI eenium the
gross receipts from said business ana winch also
tina; the said parties shah make sworn statements OF the
month and IN dcfau thereof shall be- subject N penalty Of
and default paving the tax shn be subject ~ m
oher penalty OF sOO0 OF be imprisoned not exceeding one year
shall b. construed egaze any lottery But the question of
the s Government recently oyeshadowed by
other question IN relation TO the constitutional night OF the
Secretary OF the Treasury to make certain rules and regulations
in addition the procuring of bOndsme for parties who wish
TO engage IN the lottery business and are willing 70 p the tax
and give bonds in compliance with clause section ~ Of the
Internal Revenue Laws which reads as follows
sa o @ sho ' Sa als S or oa ell e I
cts o. ,'ST9, p5T, ;I.S OF ssy fone1 Ggns q, @
part Thereof OF sy Poey q nuP4I ~ any Lottery or ,sa
Hs u sny lottery shall he deemed lottery ticket proye
that the Of lottery ha give bond In the sum Of eLoo
that the person paying such shell sell ticket or sIpe
eny ticket Of lottery which has not teen dy stamped a.
S s26 Gssp RI b. , he vi" pay the ''I
IL seems that the Secretary Of The Treasury deems himself
authorized under that portion Of the quOtcd section 'hch
that the Of any lottery shall give bong Se
laws which enaes that all persons and every person who
shall engage or ne concerned In The business Of lottery dealer
without the special under such rules and
ury promugate the following regulations III relation % any
person DESTROYS engage in business as Lottery Ticket
Msts III, usual form toe Assessor Of ths Di,
the other information required the nares o. r mana
Ssens Before paying tie pscisi tar @ Collector the
sPpsesn mos, P,@1Iss s e ,ne6 sppcns proposes
to deal n be TO deal the tcket or neme5, Of more 1
bond dien, lottery which he poPe- 70
lottery whose managers ave rot furnished boudi him ben
t s by " .ue person 90, or hrn viii be nt Tor
Tid Tie 5oSd or bonds 50 ia be given are to be conditioned
the OF $500 nss the Persowo h pad the ta1 70 DO business
Ho t sen 9 sny eas Of gpp oe, q such eiS ]
TSe s Of ,b clef q, sn Iefv cke and with the date Of
sal and That be will pay Il t imposed e Jaw on Ir s2,-
Coaaa,.oa er ., iatcy~li Rcrrare.
Lotteries in violation Of tae shove rules end rsson ", os
hsSs to 1e bes 8s sy p oT summary SS isn nn
The PRONUNCIATION OF these rules makes 1t obligatory on al
propetors OF policy shops lottery ucAe oces or an VINO
cutcd bond Of the Hangers OF he Ioic ia NnioA se, @
uetor applicant de0 proposes todcal IN TINS city there
Snol WHO 6Ick their own books instead Of selling m the
Kentucky and the other lotteries managed by Wood tdty
managers on that account These regulations have brought
ousde lottery grief for they practically proven,
the a-and them arethcy unable TO give the
qued bondsnen The managers vii not become Their snItg
and 10 other surety viii b. accepted by the Collector The
outsider feel very In relation 10 this matter for they
and yey truly that II these regulations arc carried
no prfQ fiqfI efH vii n "a
the managers give the business some OF The out
M lob by which managers who have long eudcayOrCd
either them into selling for them OF dyc them out o. c
business will reap immense pocunaTy advantages The
effort enforce them has been made until lately In TIE mean
time the outsiders have conducted their without pay
ing the thinking the thing might perhaps blow over Dut
they have, within few days been brought 70 na-
ling sense OF their position. Raids have been made On
great number OF these unfortunate "Priahs and tire cop
Ses brought before United States Commissioner Osborn
bail in the Of & 900 10 appear either ioT tra az an in
dictmcn found or for examination as he neepsd might
The Commissioner warned each unfortunate brought bcore
he violated these regulations second time the bail
for that violation would he sIuUOS II Is IN @ W %
among outsiders 10 have these regulations passed upon 10y e
Courts and obtain II possible final decision upon test case
They intend 10 have eminent counsel obtained nud
thus obtain speedily possible settlement OF the question
iSt 10 issue such regulations TO be obcyed as implicitly
LAWS made BY Congress 1t barely possible that the outsiders
SioSeS providing is in their favor but should be
them ,hee Little doubt 6ui that they viii contest these 90
10 obtain final decision.
THE TIRsT EXAMINATION.
YESTERDAY Charles New bert Of the persons brought before
the Commissioner desired examination He claimed that
he employed engaged the policy or lottery bus
ness and that had been with the exception Of acting
substitute for another person by attending to Of
policy shop day and said that be that in
doing that be acting contrary 20 the law The Commits
informed him that ignorance Of the law did not excuse
hm biz confession alone sufficient evidence 10 war
rant his commitment and that doing what he confessed he
had done he had committed misdemeenO The c1hMhAOn
was then proceeded with and the following testimony TAKEN
Al Nsr-RecoEne def ndnt; have ha beforej him
q last week him IN host bought policy al no
gsve the policy Special q the In
tern Department. have Il sneei would know II II
policy shown wtnsi that 10 the policy an lot ni'tsten
defendant being the tae he and sotbe man were boh
behine bought tie policy from Of thrm
AGoph DomslhAnItAm Sprc Agent OF the internal Revenue
Department specially appointed look after this lottery business
defendant policy the Co@nissSns
the time made ths complain
TIE Commissioner then committed the accused for trial
The deiendent is probably goat for other parties
who induced him SELL while they kept at safe distance
He very and tmorous had friends
present and did know how 10 net Those who
posted he very foolish demanding exnmna
ton and what BE- gathered Is doubtless the policy Of
those into trouble about this matter who
likely to wGt and whether the law will he nhe1by
ecuted all and In that event get their examination
postponed until either good test be made or
COMPROMISE effected with the by the arrested parties
paving their fine Of g. COO and allowing tho managers to back
their books.
The case Of NeWbet is not correct test case. He
had counsel 10 any points for the Comnsonor 70 pass
upon Other will probably BE- examined IN which al
tie material points will be raised and passed upon
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