The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-23

lottery. shall be deemed lottery ticket dealer; provided
tickets or .uppemen,.ry ticket such lottery which has
not been duly stamped according law and that he Will
The tax imposed By law The receipts Of his sAea
Sections Ill, liz and ll3 provide for tax Of i've
per cent on the gross receipts OF all otteries that
returns, verified by oath or affirmation, should be
made monthly and in duplicate to the Assistant AS
sessor and impose penalty OF $1,000 for failure TO
make such returns, and $1,000 FOR nonpayment OF
the tax. The law excerpts the managers OF certain
fairs whose proceeds are intended for charitable
purposes, and also provides that nothing In the re-
venue laws shall be construed into egalzng lot
teries. Lottery tickets must be stamped with name
OF vendor and date OF sale under penalty Of dity
dollars. Sales without license subject to penalty
Of 5000 IN addition TO all other penakes aud pur-
vendors may recover twice the amount paid az any
time within three years, with cOsts Lottery dealers
negectng TO pay the special tax shall pay ine Of
$1,000, and each manager or lottery IS required TO
x ep just and true books OF account winch shall Do
subject to the inspection Of the assessor.
As test case the complaint against Haniin Il. Sill
charged Win carrying on the business OF lottery
dealer without paying the special TAX required by
law, was Yesterday afternoon brought before Com
missioner Shields there being several other Defend
ants in attendance to await the OF the proceed
1ngs Assistant District Attorney Jackson appeared
Tor the prosecution and Mr. Spencer for the defend
ant.
+. W. Huse testined-I have been engaged in this
city In the lottery business as middlenan; during
the years That have eapsed have peen constantly
In business since the special TAX was inflicted by
Congress, June 80 1864; there are Blk lotteries IN
existence In this business-namely. The Paducah,
Georgia. Kentucky Missouri, mississippi aud Sneioy
lotteries; the drawings are twice day telegraphed
here; among those engaged are the man.
ayers, middlemen and shopmen; when the tickets
are sold the returns are maze to 50 Nassau street
ana " Liberty street; the policy business Is done
in this wlse:-There are thirteen drawn numbers
on an averages there are seventy eight numbers put
In when there are three on slip We call 1t gig two
numbers we GILL it saddle, one number a station;
Oltentmes these sold out ana they go in other
peoples names, though they might still retain the
same llcelse; when a new lottery had to pay
license OF $40; the managers OF the lottery at No. 29i
Bowery In connection win the Missouri and Ken
lucky are Benjamin Wood. Frank kiag, william
Franz, JACOB baulch, II. Coton the receipts are
signed by Benjamin Wood; they go under the name
OF Murray d Co; jacob Bauch gives the bonds for
the managers there 10 also connected with It O. H.
Minis; do not know whether MI Butts IS with the
managers; the rule concerning the special tax ia
tDat have paid tne special tax with which they
have charged me; the managers charged ali That.
Assistant district Attorney Jackson-Whicn mana
gers?
witness-C. II. Murray B Co.
Examination conttnued-With regard to the rule
concerning the five per cent, that has always been
deducted monthly by the managers; they obtain the
license tax and five per cent? there Is another lottery
firm in the city called Mcintyre Mcbrlan; he did
not know any other; the party who runs the shop
has only twelve and q half per cent on the sales;
tnere are about 400 policy shops In this city; from
my own personal observation the gross receipts for
each year, since the law or 1864, average $4,000
day; the person who takes care Of the shop gets
twelve and half per cent upon the sales; !
the necessary bond might be filed; asked
them II they would 90 bonds for my business
for 81 000 they refused saving that they would not
hold themselves responsible for me; in reference to
the charge OF five per cent 1t was deducted by the
month"; the managers get the five per cent in their
own hands and the organization Is O monopoly; the
collection district is at No. 29e Bowery.
Cross-examlned by Assistant District Attorney
Jackson-l applied for the bonds on several Occa-
sion; | went there once IN person and sent suDse
quently many times TO ascertain whether the firm
OF Murray " Co. would file The necessary bond; they
gave license for ONCE; they would not allow
me to take out license In my own name; went
TO the office OF the collector l was shown
bond purporting to be Tor my ONCE; subsequently
paid forty dollars Tor another license, which he
the money would be returned the lottery for which
paid The forty dollars ran only two or three weeks
paaucah lottery; my place Of business Is not at 56s
washington street, but that Is one OF the branches
After a further examination OF the witness Mr..
Spencer addressed the Court as some length, con-
tending that the defendant was not 10y any means
responsible for the charges which had been
preferred against the lottery dealers. Sill, as
wen as the Others, were mere shopkeepers,
receiving twelve and half per cenG for their
being carried in this city mace felony by ex-
press act OF the Legislatures business punishable
by incarceration In the state Prison. He dnated
upon the TACT that few monopoliss controlled the
lottery business in this city. poekeled the money
that belonged to the government and debarred 9TH
ers from entering into the business He asserted
that the lottery managers had defrauded the govern
ment OF less than 81, 000 600. MIR. Spencer con-
Cuueu ny uIkU COIlpllHleut 10 Tue C4nIHlS-
sloner and other members OF the United States
Court, which, he contended, was invulnerabie to
political power and the temptations OF wealth. He
moved for an adjournment IN order that the books
OF the Collector might be produced TO show whether
the defendants had paid the special tax and other
payments connected with the lottery business
Assistant District Attorney Jackson briefly replied
observing that the laws, however good, bad or |
obscure, must be enforced. IL they were bad they
could be corrected II had been contended that the
defendants aud those depending upon the issue Of
this investigation had proposed to pay all that was
required Of them, and that they did 80. But the
law set forth that no receipt Could be given without
the bond had been regularly filed. II the defend.
ants felt aggrieved at the treatment extended to
them by the managers, they had their remedy In q
civil action. As was the law was clear and distinct
and the Defendants connected as they were In some
way with the lottery BUSINESS for which they had
not paid the special tax required by law, were re-
sponsiDle.
Commissioner Shields-The only question before
me at present II whether the defendant Sill paN
the special wax.
Mr.. Spencer said 1t was necessary to produce the
books or the Collector to show what had been paid,
and also TO prove that the defendants had complied
with the requirements OF the law SO far as lay IN
tue1r power.
Assistant District Attorney Jackson Offering no
objection to the suggestion OF the defendants |
counsel,
Commissioner Shields adjourned the case TIL this
afternoon.
INTERNAL REVENUE RETURNS.
The following are the returns Of gross receipts |
made to the different internal revenue collectors for
a al lpto