The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-03-27
A ONTANA MANS
SCHEME EXPOSED,
HE ENDEAVoRS TO EVADE THE
LOTTERY LAW AND GETS
INTO TROUBLE.
TRAP TO CATCH THE UNWARY.
HUNDREDS OF SAN FRANcIsCANs
HAVE BITTEN AT THE TEMPT
ING PLUM.
TRAP TO CATCH THE UNWARY,

Dispatches from Butte, Montana, an
nounce that Henry L. Haupt, president
OF the Montana Mining, Loan and Invest
ment Company, domiciled in that city, is
now being tried before the United States
court on the charge of sending non-maila-
BILE matter through the mails. The COM
pany is well known in San Francisco among
those who every month spend a few dollars
IN the hope that "lottery lightning" will
come their way, and by others seeking a
Legitimate investment. Henry G. Mangles,
clgar-dealer, at the corner of Clay and
East streets, is the Pacific Coast agent
The scheme of the company is peculiarly
seductive, and was concocted to evade the
lottery laws.
1t was said in the circulars that
the company owned several rich mines
ana had paid up capital stock of $12,-
100000. Each share of stock was placed at
$120, which could be paid in one sum, or
In amounts ranging from 10 cents to ST..
And Just there is where the little Joker"
OF the Montana Mining, Loan and Invest
ment Company came in.
On the Goth of each month the company
made, or pretended to make, "loans' ag-
gregating $50, 600, with principal loan''
OF sic. 900. The Honduras and Little Ha-
vana lotteries call these monthly distribu-
tons prizes" and the Postoffice officials
are now endeavoring to make Mr. Haupt
explain the difference between a "loan ;"
which the certificate-owner is never ex'
pected to pay back, and the prize system
used by the various lottery companies
Thousands of people in San Francisco and
along the coast have been induced to part
with their dollars in the vain hope of secur-
ing a loan" or failing in that, to ulti-
mately become shareholders in the rich
mining properties which Haupt said his
company owned. People who are unalter-
ably opposed to lotteries have not hest
tated to put their money in this so-called
mining stock. In the trial now going on
in Butte it has developed that the capital
stock of the company consists of a
dozen worthless mining claims located
by Haupt and decided to the company in
consideration of 500. Upon representation
that he intended organizing legitimate
mining company Haupt induced many
of Montana's most prominent citizens to
join the incorporation. The banks were
used as references, and Haupt was doing a
rushing business when arrested. In one
OF his circulars Haupt says: 1.-The Montana
Mining, Loan and Investment Company
was organized for the purpose of prospect
ing, locating and acquiring mining proper
ties and making other investments, and
for the loaning of money"
Henry C. Mangles, the Pacific Coast
agent, is not much disturbed over the ar
rest of President Haupt He declares that
any one unwise enough to buy a lottery
ticket expecting to get something for moth
ing should be swindled.
''All lotteries are frauds" said Mangles
yesterday, land you can just rely on it
that the manager knows before a drawing
takes place where every dollar is going.
Haupt's company may be fraud, but it is
no worse than any of the rest. We have
done comparatively little business here,
making, only one small loan of $500 in
Oakland. l can't recall the name of the
person just now, but the money came
through the First National Bank. Pm in
the business for what money L can make
out of it, but [ think any man is a fool who
buys a lottery ticket
The certificate is model of ingenuity
and is well calculated to attract any man
with few dollars to spare. 1t reads as
follows: 'This is to certify that the holder
hereof has paid the above-named company
the sum of 81, part payment on a share of
stock in said company of the par value of
$120 per share, the balance due on said
share being payable in monthly INSTALL
ments of 81 each. This certificate en-
titles the holder to make application for
loan from said company if presented
within ninety days from the date hereof"