Evening star. [volume] (Washington, D.C.) 1854-1972, 1880-01-12
Lotteries in the Mails.
REPORT OF THE POSTMASTER GENERAL.

1879. recurring him to furnish such information
as the records of the Post Office department
might contain respecting the extent to which
lottery companies or agents make use OF the
mails for the conduct and circulation OF their
correspondence, and the extent to which the
mails are used in reply. The report Is very vol
luminous. Although the resolution calls for in
formation regarding lottery schemes only, the
Post Onice department have taken it for grant
ed that Congress desired information In relation
to the use of the mails by the agents and origin
ators of other fraudulent schemes, and have in
cluded In the report an outline OF the various
methods employed to obtain money through the
mails, together with particular cases illustrate
ing these methods.
There are six different classes of schemes re-
ferred to in the report, of which the lottery
companies, organized or proposing to have been
organized by the state authority is first con,
Sidered. On this head the Postmaster General
says: "Orders have been issued in pursuance of
the statutes during the last four months against
various parties operating in Louisville, Coving-
ton, Newport and Frankfort, Kentucky, under
what they claim to be grants for certrin pur-
poses by the state of Kentucky" The report then
gives history of those which claim to be opera
ting under an act OF the Kentucky legislature,
of Isss, and says: This contract, it is claimed,
has, by various assignments, come into the
hands OF Summons and Dickinson. OF New
York, and Murray, France CO., OF st. LOUIS,
advertisements and circulars of this lottery,
printed or circulated through the mails, the pub
lie are informed that "holders of prizes are
secured by ample bonds deposited with the state
by the lottery managers In letter Nov. y 1s79,
the state treasurer says that neither
The Kentucky state nor any other lottery
The attention of the House is called to the
opinion Of Hon. John Rodman, attorney general
OF Kentucky, in response to a resolution of the
state senate, in which he holds that the various
lotteries chartered at different times under
state grants have long since raised all the
money authorized by their charters, and that
tion OF law. The case against the Common
wealth Distribution Company rests upon the
same kind of evidence as that upon which the
order against the Kentucky State Lottery was
issued. The corporation claims to act under the
Frankfort grant,
Among the lottery companies which have
used or now use the mails extensively, mention
is made OF the Wyoming Lottery and Cheyenne
Lottery companies, the Grand Distribution Com
pany Of Victoria, Canada, and the New Brunt.
wick Grand Gift Soiree, of st. stephens, New
Brunswick, operated by one j. NJ. Potter, one
of the most persistent. ingenious and ubiquitous
persons using the mails for the purpose of de-
ceiving and defrauding the public by means of
gift enterprises, schemes and devices" A
number OF his enterprises are named. The
Kentucky Cash Distribution Company, the Lou
isiana State Lottery, and the Arizona Lottery,
have also been subject to investigation by the
department. The draw .ngS OF the Canadian
and the New Brunswick companies taking place
outside OF the United States, no action could be
taken by the department in the matter Of re-
money orders Orders have been issued, how
ever, to the postmaster at Calais, Me-, where the
New Brunswick Lottery has an agent in regard
10 such letters and orders.
The lottery company most extensively using
the mails is the Louisiana State Lottery, claim
ing to operate under state law OF 1858, which
is asserted to be recognized by the new state
constitution. 1t is not deemed compatible with
public interests to submit now the evidence
upon which the Postmaster General acted in
this case. there being suit pending, brought
against him by the lottery mapagels.
The next case mentioned is that of Edgar W.
JONES' alias the Union Publishing Comany, alias
the Magnetic Watch Company, of Ashland
Mass, and having several other aliases under
which he sent through the malls in 1876 sol, 900
circulars and advertisements of obscene books
and "geuine SWISS magnetic timekeeper,'
which was in fe It a brass compass of no value.
For months the complaints from parents, teach
erS, etc., from all parts OF the country in re-
gard to the vile document sent by Jones to their
chtldren were piling up on the hands OF the
Postmaster General, until through the eXer-
tionS of Mr.. Anthony ComStock, Jones was in
dicted and his business broken up.
The next case Is that OF II. ID. }. Allen alias
the National Banking Company, OF 20 Nassau
street. N. Y. This s0-called company flooded
the country with flaming circulars, offering to
sell what they called bonds on the Havana,
Kentucky and louisiana lotteries at half the
regular rates for tickets and to add extra prizes
to the drawings. special agent of the depart
ment reports that he arrested II. L. P. Allen,
otherwise known as the National Banking Com
pany for violation OF the postal law, and pro-
cured his indictment. He states that Allen in
formed him that he sold tickets or bonds de-
pendent upon certain lottery drawings as to
whether prizes were received or not but said
nothing about any banking business. No con-
test was made by the concern.
The Texas Gift Concert Association, Of Deni-
successful swindles disclosed by the department
records Its receipts were about 100000. The
report OF Special Agent Edgerton on the case,
dated st. Louis September IS, 1915, and pub
liShed in full In the New York r., jbu,lp is en-
closed.
1.-The Denver Land Company is title urder
which species of fraud, very common fifteen
or twenty years ago, but orerare of late years,
was successfully pei lpetratod. The prospectus
OF the company makes very brilliant showing
OF the future prospects Of the city of Denver,
and offers TO send by return mail to any one
sending them their name and post office address
and one dollar TO pay cost OF making and
acknowledging deed, postage, &C, clear war
rantee deed to lot 25 feet front by l25 feet deep
IN North Denver, Colorado, clear Of all taxes
The name OF North Denver carries with it the
impression that it is an addition or suburb OF
sWindlng company to dupe people into the
BELIEF that they are getting property contiguous
to Denver, Col. North Denver, the post offiee
officials have learned, is "a miles northeast Of
Denver and entirely unimproved
5. A: Grant, one OF the persons engaged In the
swindle, has been indicted by the grand jury Of
The .. S. court of Rapahoe county, Col, and is
now awaiting trial. "The Kansas Land COM
pany,' doing business at Topeka. Kan, is men,
Lioned as one belonging to the same class as the
Denver Land company. This concern adver-
tises to give away ''Kansas homes" for 81 each,
but as 1t was started about the time OF the ex-
posure OF the Denver Land company's swIndle,
IL was frustrated almost at Its Inception by the
prompt and energetic action OF the post Office
officials.
Various arrests and seizures are detailed In
The case OF Max Berger, alias Berger & Co., alias
WachSman Co., Bankers" 81 Nassau street.
New York City. These names were used to
cover the sale OF tickets in the Royal Havana
the Ducal Brunswick, k,-Luneburgh-the Free
city OF Hamburger, the Louisiana and the Ken
lucky Lotteries, and the commonwealth DlStri-
button Company. 1t being proved that no other
than lottery business was done by these men,
the proper order was issued November 14th,
1879, forbidding the delivery OF matter addressed
10 them and directing the return to senderS OF
registered letters and money orders.
There is another class distinct from the lot
terry, in that 1t assumes to conduct its business
upon legitimate principles not depending upon
choice, but upon accumulated capital invested
under the advice OF men of experience, judg-
ment and integrity In the actual purchase OF
stocks In Wall Street, holding them until rise,
when they are closed out and the profits, less
moderate commission, paid to agent effecting
the purchase and sale of stocks, is divided
among the persons advancing the money in
vested. Some OF these dealers assumed names,
either closely resembling those OF reputable
dealers, or in some cases Identical with them.
Among these are Lawrence CO. and Heath eco.
Mr.. Comstock says: 81 am informed that the
form of their contract Ia Illegal and that money