The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-04-14
NASBY IN THE SOUTH.
A Peculiar Louisiana mstitutiOn-Tbe Louis
lana State Lottery-What 1t Is and How
1t Is Conducted and All About It,
LETTER No. TX.


self, had once passion for such methods of ac-
quiring wealth New Hampshire, and, we be
heve, all the New England States, at one time
authorized lotteries, and used them a means
of paying off Indebtedness, building roads, and
equipping forces for the defense Of the colonies.
New England and the Northern States generally,
as States, have outgrown the lottery, however
much individuals III the cold ATTITUDES have a
passion for them.
In Europe the lottery is government insti-
tuition as much as the tax gatherer. Germany,
Austria and Italy all have lotteries that are a
part of the governmental system. In Austria
loans are contracted, the interest being paid III
prizes determined by lot, and almost every Aus
trian and Italian purchases these tickets. The
principal is paid by the government at maturity,
and the interest is divided among those making
the loan. A man simply lends the government
a hundred forms at per cent Instead Of re-
ceivng five forms interest. he and all the other
holders throw it into pool, and five lucky men
draw the interest from a million of such loans
Which is to say, they prefer to take chance OF
receiving 100, 900 forins to certainty of receiv
ing five. And so the hundred forms bond lies
from year to year, in the hope of its eventually
making the holder an Independent man.
The same system is in vogue in New Orleans
The city issues what are called premium bonds, "
the interest being distributed in blocks by lot
These bonds they sell the same as other secu1-
ties on which interest is paid in the usual way
in fact, they are preferred.
The greatest lottery in the United States Is
The people of the South Louisiana especially,
and New Orleans more especially, have always
been devoted patrons of the lottery Enormous
sums We're annually sent abroad to Havana
Vienna, Rome, and everywhere else for tickets
all of which told severely upon the resources of
the State Taking advantage of this tendency
of the people, irresponsible lottery companies
we're formed all over the State, which were
swindles of the commonest order.
To remedy this, the Legislature of the State,
in 1868, authorized the Incorporation OF one lot
terry company. TO be known as 1.-The Louisiana
State Lottery Company" with capital OF 81 :
600 900, and enacted that this company should
alone have the right to prosecute the business
within the State The methods Of conducting
the business were all set forth with great exact
ness, and a certain percentage OF the prohts was
required to be devoted to the support of the hos
pitfalls of the city; and it was also provided that
all drawings should be conducted by board OF
commissioners appointed by the State.
Under this act the company was organized
and its stock taken by the very best citizens OF
the State all classes of business men being IN
Guided in the list of stockholders, and the best
citizens accepting positions in its management
In 1873 the same provisions were included in the
revised Constitution of the State, giving the com
pany the double seal of legality, legislative and
constitutional,
Under this charter, or rather charters, the
company has operated ever since. The stock IN
the company is quoted regularly upon the Stock
Exchange. Its stockholders. and those in The
best-known business men of the city and State
men not only of recognized financial, but social
position
1t is essentially State institution. The State
Hospital one of the largest, best conducted and
best-equipped in the United States, is supported
by the company, not by donation, but in pursu-
ance of provision in its charter. The payments
to the hospital are made quarterly,
1t is large contributor to every charity, and
it is the most important factor in the material
prosperity of the city Its stockholders are
planters, mill-owners, sugar refners and real
estate owners who have an interest in the city
and State greater than any association within
its borders. Consequently the company is the
very center and heart of all enterprises directed
to the DEVELOPMENT of the State. 1t is the pro
moter of the various railroad enterprises and
manufacturing schemes which have since the
war done so much toward the development Of
the resources of the State.
The company has to-day larger capital than
any bank in the State, and its financial re
sources are practically unlimited No one in
New Orleans questions its integrity, No matter
what may be thought of the morals of lotteries
in the abstract, the State of Louisiana believes
in them and it has made a giant corporation,
and so hedged it around that it stands the sever
est possible tests
The character and standing of those who, from
time to time, have been in its management has
n ever been questioned, either on the legislative
floor or in the press 1t owes It's existence TO a
vote of the people of the State, who twice in
UOrSeQ lJ--Olce Dy Il majority Oh pU,UUU VOTES
and it is so hedged with safeguards that it pos
sesses their entire confidence. The managers
know nothing of the drawings; the commission
ers, who really State officials, have sole con
troll of every detail. They have always actual
possession of every ballot placed in the wheels
and they can reap no benefit whatever from any
drawing. Added to this source of confidence is
the additional fact that men of the very highest
commercial integrity are active in it. owning its
stock and controlling its operations. There is
scarcely banker or merchant in New Orleans
who IS not directly interested in it, and they
take as much pride in its reputation as they do
in their own private business.
The company own a very fine building on St
Charles street in which its vast business is
transacted, and an army of clerks and account
ants are required. 1t has the appearance, in
ternally and externally, of a systematically
Quoted bank. which it really is, only it does
more business than any ten banks in the city.
This would be impossible in the Northern
States. No merchant shipowner or manufae-
turer in Boston would want it known that he
was concerned in lottery, even as a ticket
buyer, much less stakeholder or manager
while here in New Orleans it is not only not
disreputable, but absolutely legitimate, as much
so as any other business. When the company
was organized and the stock placed upon the
market it was considered the same any other
stock men of the very highest character inan-
cially and socially invested in it and went into
its direction, and it is managed with just nice
a regard for mercantile honor and commercial
integrity as any stock company IN the South.
The difference between Boston and New Orleans
in this respect, is in the moral sense of the com
munity. In this particular New Orleans is
where New England was hundred years ago.
That is all
Whatever may be public opinion as to lot
teres in general, it is only justice to say that
the company performs all promises with rigorous
fidelity, and its bitterest opponents have never
questioned its integrity.
HOW THE DRAWINGS ARE CONDUCTED
All the drawings of the Louisiana company
are under the personal supervision of Generals
G. T. Beauregard and Jubal A. Early assisted
by a State commission. The managers have no
interest in the drawing, nor have they anything
whatever to do with it. Everything is in the
hands of commissioners and they alone manage
the distribution.
The method is very simple There are each
month loo 900 tickets sold Numbers from one