The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1892-08-04
The Weli-Known Lot Jumper Ar
rested in Butte on a Seri-
Gus Charge.
He Is Said to Have Violated the
United States Anti-Lot-
tory Law.
A Scheme Which Prominent Citizens
and the Banks Of Butte Wcr0
Induced to Endorse,


to G. W. Cannon, D. A. Il. Flowerrse, and 8.
T. Haussr. Haupt got ON the ground, but
was compelled TO vacate at the point of
shotgun. This was not the only attempt at
lot jun ping made BY Haupt in the vicinity
of Helena, but il was the most unsuccessful
enc. But Haupts present difficulty does
not smanate from desire TO squat on an
other mans property. He 10 charged this
time with violation of tho United States
postal laws and he will havc Uncle
Sam to deal with in his endsav-
ors to keep oct Of the penitentiary.
Judge Bsdsll, post office inspector in charge
of the Helena division, received q telegram
yesterday from Inspector Wayland, at
Butte, stating that he had caused the arrest
of Henry l.. Haupt, charged with violating
the snti-lottery law. Haupt was held In
the sum Of 81, 600 pending hearing OF the
case which is set for the 10th. Investiga-
tion Of this case BY inspector Wnylsnd
shows that Mr.. Haupti Is president of the
Montana Mining, Loan and Investment
company. of Butte, and advertlses that the
capital stock ia $l2.00O,O0O, full paid, and
that it is "organiZed for the purpose OF
prospecting. locating and acquiring mining
properties and making other investments,
ana Tor the lOAnlnR or money.
The scheme originated with Haupt, and
last winter he induced several reputable
citizens of Butte to allow the use OF their
names as dir ectors in an ''fn nvestment oom
pany,' making them believe that il was on
| the plan of ordinary companies and build
ing associations. He then visited the banks
of Butte, showed them the names OF the
directors" and was given permission from
| each bank to make reference to II. The
next step was to cause two reputable citi-
zens and himself to be elected ~ trustees,
he being designated - president and treas-
urer and one Of the aforesaid citizens 40
secretary. subsequently assuming the du-
ties Of the secretary, Also thus securing en-
tire and complete management OF the oon-
| cern. Haupt then made Locations" on
eleven ''claims' near Butte, referred to in
his prospectus. and on Feb. last trAas-
company IN consideration Of the SI2, O00, 600
of its capital stock. He has since
located and transferred three moro
''olaims." He divided tho stock into 100.-
600 shares of $120 each, and is now en-
gagged in selling 1000 ''csrtihcates' each
month at 81 Zach, the holder of 120 Of these
issued in l2O consecutive months to be en-
titled to one share ($120) of the capital
stock. Haupt then proposes to loan" to
certificate holders one-half-that ia, $780,
600 per month. If all certificates are sold
OF all receipts of the concern; one loan
| NACu, ranging IIOIn uOWu W TO ~
certain certificate holders to be selected by
Haupt himself. and for such loan he is to
accept IN unsecured, non-intersst bearing
note, payable in January, 1912; $20 900 per
month 10 to be raid for agents commits
sions and 5000 for office expenses" leav-
| ing $25 900 per month to invest in mines
and real estate; and the original invest
ment and its increase and the amount OF
promissory notes to be collected in 1922
| will constitute the assets of the company In
addition TO the fourteen mines" now
owned by it.
above; claims that he himself selects the
numbers of the certificates and the amounts
to be loaned thereon, and that he selects a
certain city or town and the Amount THAI
it will do the most good'' 10 lend therein
then he selects a ticket that il to be sold in
is advised by monthly statements, mailed
to agents. what amount he ia entitled tc
borrow; the borrower then forwards his
note and ninety days thereafter the money
il to be sent to him.
The infamy OF the scheme consists in
tiicates in March, 1892, and continue with
out fail to purchase one each and every
month for ten years will ever be entitled TO
any of these shares, and that in the end
Haupt will practically own all the shares
and the honest certificate holder will only
have chance to SECURE the use OF an uncer
tain sum for twenty years!
All the So called ,ectors in the scheme,
az we'll as the banks. have aided the in
speotor in HIS investigation in every man
nsr possible and have taken occasion te
expose the scheme from the time they were
first made acquainted with its true pur-
pose. The evidence in the cass 10 sAid X
to be complete. The penalty for viola
tion Of the anti lottery law il a fine of no
more than $500 or imprisonment for no
mots than ons wear, or by both such hn'
and imprisonment.