The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-10-17
NEW KIND OF LOTTERY
Get-Rich-Q Quick Scheme That Uncle
Sam Didn't Approve.
Old and Present Officers of the Guaran-
tee Investment Company, of
Nevada, Mo-, Indicted.
Special to the Indianapolis Journal


CHICAGO, Oct. 16-Indictments have
been returned by the federal grand Jury
against the officers of the Guarantee In
vestment Company, of Nevada, Mo- The
company, which had been in existence about
two years, Is believed by the government
oncials to be perfectly sound and we'll
managed institution, but its methods are
held to be a violation of the lottery laws.
1t was incorporated under the laws of Mis-
souri,, and it's principal office is in St Louis
r Two indictments have been found embrac-
ing the officers Of the company for the past
and present years. The present officers are:
George NJ. Mcdonald president and general
manager, w. II. Stevenson vice president
and treasurer, F. NJ Swearington secretary
and j. B. Johnson, the only director IN the
executive office. The former officers, who
are included in separate Indictment were
j. n. Talbot president and general man
ager, 1. NJ. Van Slike vice president, T. c.
Hambaugh and c. M. Mcdonald assistants
to general manager. In addition to the ST.
Louis and Chicago offices there are branch
offices in various Southern and Western
States.
Only one scheme of investment is offered
by the company. This consists in the sale
of 81, 900 bonds for 81 down and 81 % a month
the company pledges itself only to use 25
cents for expenses and to place the remain
ing 81 In a trust fund When 81 900 is paid
into this trust fund the person holding the
bond entitled to payment IS entitled to re-
ceive its face value 1t is the method of as
certaining which bond shall be paid that the
government officials object to. /. Instead of
paying the bonds in consecutive order, the
numerals are paid alternately with multi
pies of five For instance, after bond No. /
is paid, bond No. follows. Bond No. 2
comes next and then bond No. TO- When
bond No. 8 is reached in consecutive order
1t has already been paid as q multiple num-
Der and its multiple of five. which would be
twenty-five, is paid instead.
The Postoffice Department has been or
dered TO stop all money order and registry
business of the company. Since it's organi-
Zation the company has paid 206 bonds of
total value of $206000, and during this time
ii is said to have issued an enormous
amount of policies. Up TO the present time
il is said the lucky shareholders have paid
average of only $50 for the $1,000 which
each drew out. Postoffice Inspector Stuart
has given notice that all newspapers which
contain advertisements of the company will
be thrown out Of the mails.
Inspector Stuart, who has, perhaps,
greater familiarity with the doings OF the
company than perhaps any other outsider
says that nearly fifty thousand people
have been induced to purchase bonds AL
though many of the bonds are allowed to
lapse, il is said that the receipts from
The federal authorities do not accuse
those at the head Of the company with
criminal mismanagement of the funds in
trusted to them. Their only claim is that
they violate the laws governing the oper-
alton of lotteries.