Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-07-16
AN ATTRACTIVE SCHEME.
SELLING AUSTRIAN LOTTERY TICKETS
DISGUISED AS BONDS.

European Government Agent Making
Money Our of GuiIibIe westerners-
Legality of His Method. Questioned and
His Tickets seizsd-His Modus Opernndi.
ESPECIAL TELEGRAM TO THE DIsPArcH.I
CHICAGO, July 15.-An interesting ques-
tion of international comfy has been
brought to the front by the seizure the other
day by Inspector Stewart, of the Chicago
Postoffice, of CERTAIN Austrian Government
bonds, which a European lottery concern
has sent through the mails to
one of its patrons in Chicago. The
lottery managers In this instance seem to
be operating as representatives. of the Gov
ernnent OF Austria. On its face their
SCENE is not lottery at all, but a simple
sale to American investors of the bonds of
foreign power.
The Austrian Government issues a large
number OF bonds, payable at the
end of a long period, say 30 years.
1t pays interest on the bonds
In the form of interest coupons, which in
reality are lottery tickets, since each one
represents an unknown amount of money.
When the interest coupon draws prize the
bond on which the prize is drawn is called
In, and thereafter it ceases to bear interest,
and the principal is not payable until the
expiration OF the period of 30 years. The
scheme is peculiarly attractive one
lnasmuch as the purchase of bond IS
assured in advance that its par value is
payable in any event. but it is SO arranged
that the projectors of the scheme are heavy
and constant winners.
In this country the Austrian Govern
ment's enterprise is just getting fairly into
business. 1t has had an Office in New York
for some time, and now branches
have been established in Chicago, San
Francisco, Mexico and at various other
points. The Chicago Office operates over a
large extent O. territory, and is said to do
good business in Pittsburg and vicinity.
When Inspector Stewart seized the bonds
in question he consulted with District At
torney Ewing, who told him that he was
right, and that the parties sending such
matter through the mails were plain vio-
lators of the law. Not satisfied with
this, the Inspector laid the whole
matter before the Postoffice Depart
ment at Washington, calling attention
to the fact that the backer and apparently
the protector of the scheme was the Austrian
Government, and asking for instruc-
tions. The orders from that quarter were to
go ahead precisely as in the case Of priv
ate individual. Inspector Stewart is now
in the East and nothing will be done until
his return to Chicago. In the meantime the
Austrian Governments represents
tive is doing a big business from
Chicago as headquarters. He is selling his
S1OO bonds on the installment plan to a
class of people who have to borrow money
to pay the first installment. He cites case,
decided in the United States court in the
Southern district OF New York, to show that
his enterprise cannot be interered with by
law. but the United States District Attor-
ney insists that he is mistaken. The Chief
of Police says that he will take no action to
prevent the Chicago Office from doing busi-
ness until the United States District Attor-
ney has got through with the case, though
Assistant City Attorney Cameron has ruled
that the face OF the Austrian bonds is clearly
in violation Of the Chicago city ordinance.