The morning call., 1893-10-18
LIKE A LOTTERY.
A Local Imitation of a
Chicago Scheme.
ITS PROTOTYPE IN TROUBLE.
The Managers of the Western Saw
fngs Investment Company of
California Become Anxious.

A Chicago dispatch of Monday announc-
Ing the arrest of the officers, past and pres
i: ent of the Guaranty Investment Company
on the charge of conducting lottery has
occasionei decided sensation among GER
tain speculative gentlemen in this city
The Guaranty Investment Company of
Chicago is the prototype of the Western
savinCs Investment Company of Cali
fornia loca ted in rooms SO and 81 OF the
Chronicle building in this city. The San
Francisco company was organized by
Frank L. Thresher, Chicago man, who
became its president. The other officers
ere c. H. Wilson, vice president; William
I Ritehe of the Examiner circulation de-
partment, secretary and treasurer, and ID.
K. Ritchie, assistant secretary and treas
urer.
Being modelled On the Chicago company
the plan or scheme of the California COM
pany is precisely similar, as shown by the
following excerpt from the circulars issued
by the latter concern:
Bonds for $1,000 will be issued in the order
applied for. Every person applying will be re-
-euiTed to pay $40, the purchase price which
the authorized agent receiving the applicant ion.
Thereafter, beginning on the first Gay of the
The b0ndhOlder VIII lie required 10 pay a
monthly installment Of 81 % on each bond
This payment mnSt be made at the home Office
of the company at San Francisco. Cal. One
dollar of each monthly installmeut is immedi-
Atey placed to the credit of the maturing fund.
Twenty-Five cents, the remainder OF each
monthly nslaIment Will be placed TO The credit
of the expense fund and used for the malnten-
. ance of the company.
One dollar of all monthly installments, to-
getner with all fines paid on the bonds issued
by the company. shall constitute a maturing
fund for the payment of the bonds of the com.
pany in the order and manner following, 10
d. wit: The first bond paid shall be No. /; the
second bond paid shall be No. Z; The third
bond paG shall be No. 40; the fourth bond
paid shall be No. 2; the nth bond paid shall be
Ne. IA; the sixth bond paid snail be No. 9o,
and so on, revertng back each time TO the first
. Issued, unforfeited and unpaid bond, after pro-
crossing twice with the muitlplIer OF until
=. all bonds issued are paid. The maturing fund
: VIII be honestly kept dnd guafoed Oy the COM
. pany and the same Will not be used impaired
or diminished, for any other purpose than that
. of paying the bonds issued according 10 the
above plan.
The officers named have what is COM
monty termed soft snap. When per-
son purchases a $1,000 bond for $40 the
SO drops into the company, the maturing
fund depending entirely upon the monthly
assessments of 81 %.
= The enormous business transacted by
.:the Chicago company was utilized by the
San Francisco company, 1t being asserted
that the Chicago company had written
S26, O0O, coo worth of business in eighteen
months and matured bonds at the rate Of
twenty-five a month.
The San Francisco company matured
It's first bond on September Is. paying
$1,000 to John Serex, who held bond No. 1.
Among those who are referred TO 10 the
circular as patrons of and believers in the
San Francisco company. or who in other
words believe that something can be pro-
duced out of nothing, are Charles u.
Palmer, the whilom business manager OF
the Examiner. R. a. Mcdonald Jr., DR..
W. A. Harvey. William F: Bogart of the
Examiner, Dr. William L. Kneedler and