New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-05-20
THE PRIZE TICKET PLAN NOT APPLI-
CABLE HERE.

in a lottery. This credulity keeps II
press perpetually on the watch lest tt
astute sharpers Of Wall street may succee
in shaking in some specious scheme upo
our innocent and excellent municip;
governors.
As the first of these schemes was pr,
seuted to the people in a semi-otficis
pamphlet, SO we find another piece OF th
same ephemeral literature, headed
"Plan for Funding the Bonded Debt c
the City of New Orleans, by D. H. Adler.
Not finding this name in our city direc
tory, we were under the Apprehension
that it might be a device Of the famou
Max Adler to make grave fun of tn
public in his inimtible manner. How
ever we may be impressed with this au
thorship from the very peculiar PROPOSE
ton of inducing lot of poor people te
scale their rate Of contract interest for the
hope of drawing part of their OWL
money, some time in the last Of this OF
the first quarter of the next century, we
are compelled to relinquish the theory by
the fact of the different photography o!
the names of the two authors.
The work of Mr.. d. II. Adler consists
of certain extracts from certain New York
papers explanatory of the principle upon
which the Industrial Exhibition Company
of that city proposes to raise the money
to erect the buildings Of that institution
We disavow any intention to excite pre-
JUDGE against plan merely because it
introduces new technicalities of finance,
or because it may not be very readily COM
pretended. In the case stated certain
corporators appear to hold already im-
mensely valuable real estate, which will
be secured to the bondholders by mort
gage, making them virtually the owners
of the ground and buildings to be
erected" OF the twenty millions nego-
tiated nine millions are to ''be invested in
bonds or mortgages bearing seven per
cent, insuring the company an annual
revenue of SIX hundred and thirty thou
sand dollars
We have thus the immensely valuable
real estate with the investment stated,
which gives very substantial foundation
for further credit OF this revenue from
the mortgage notes six hundred thousand
dollars is to be distributed as premiums
We shall translate, as prizes among the
1olders of the loan certificates.
This is explained by the, commercial
Times thus:
The amount invested can not possibly be
Ost, and each bOndholder has the addi-
ional certainty of receiving premium in
leu of interest, the entire interest of the
oan 5000 00O1 being thus distributed in
inc quail sums. While the principal is thus
ecured there will be an opportunity every
hree months of gaining an enormous pre-
mum.
The reader will note a flaw in this logic.
We are told that leach bondholder has
he additional security of receiving pre-
alum in lieu CT interest
This does not, however, insure the |
ondholder the interest on his loan, be- |
ause we are told he will have an oppor-
unity every three months of gaining an
enormous premium. We presume he
light have the same opportunity by buy
lg ticket in any other lottery.
We see nothing original or remarkable
/ this scheme as applied to joint stock
1terprise. People who go into any lotte-
are increasingly drawing for each others
oney. The lottery man puts in none
his own He throws the dice and takes
percentage of the money just like any
her roulette or chuck-a luck or sweat
9th sharp.
In the case stated the joint stock COM
ny sells its bonds for such an amount
will enable them to distribute part in
ICES. Instead of paying to each bond
lder simple interest, they distribute }
is simple interest in unequal prizes.
lere is nothing new in the principle,
ough there may be in the gambling
ture. A man would not lend twenty J
liars at seven per cent, payable semi
nually, but call it a ticket with a chance
one hundred thousand dollars and he {
l be eager to buy it. There is, we I
'eat, nothing new in the principle. A Z
at stock railroad company may begin a
pay dividends on full paid stock before o
y have laid rail. These dividends are G.
an advance to the subscribers out of is
If own money, and will be charged to q
struction account When the road q
ms to work the tariff of charges will be u
to pay interest or dividends upon the
Die advance. The stockholders then u
7 thus receive interest on their money II
l in, without intermission. until the p
,ipts from the road afford them divi- bi
ds. This is all perfectly comprehensi- o.
It consists III making acquisitions q
stockholders and in laying prospective, III
probable profits at such a rate that NJ
: will afford compensation to those Gu
undertake the enterprise, to be reim- ca
sed them IL the returns exacted from til
enterprise whenc ompleted. or
e ask the reader however, to reflect tn
little this scheme corresponds IN the on
umstances OF its execution in the case N
ed with those to which it is proposed er
e applied here. M
We have certain holders Of bonds 10 IA
amount of twenty-three million dol tn
They are outstanding in the names all