The San Francisco call., 1896-04-16
LOTTERY BOND SWINDLE,
One Million Dollars Extorted
From the People of This
Coast.
The Business SO Manipulated That the
Victims Can Have No Re-
course to Law.

One million dollars worth of foreign
bonds at a low estimate are held by the
small storekeepers, working girls, clerks
in stores and others of limited means on
this coast through the false attractions OF
q lottery attachment which is made a
prominent feature in conSummating their
sale.
Every bond sold by the agents of these
firms, several of whom have their head
quarters in this City, returns net profit
of 800 per cent, though the purchaser is
given the impression that he is paying no
more than the face or market value of the
same. The bonds handled are usually
those having their money value expressed
IN francs and FORMS and the victims are
people who have no knowledge of the
monetary difference between the fiorin
and franc of Europe and the dollar OF this
Europe.
These bonds are sold in groups of four or
five, comprising as many different securi-
ties, and the purchaser, in order to induce
him to fall reader victim, is permitted
TO pay for them on the installment plan,
the amount paid each month ranging
from 81 80 to $40. according to the aggre-
gate amount of the purchase.
The bonds are the legal issues of GER
tain Governments of Europe, who find it
necessary to resort to this questionable
means of lottery bonds to raise money
enough to meet the emergencies OF the
present, and the payment of them is de-
termlned by monthly drawing. The
bonds drawn each month are at once paid
off, the holder receiving their face value,
and perhaps an additional sum as prize,
the later feature having been Incorporated
by the respective Governments in order to
bring about the sale of the securities, as
these seldom bear interest, or if they do
the interest rate is a very low one, and the
interest-paying bonds offer less attraction
III the shape OF prizes.
Groups of these bonds are sold for
amounts ranging from 500 to $1,000. A
sample group that is quite commonly sold
In this City is made up as follows: A Ser
Wan bond, with face value of 100 francs,
whose actual market value on the Vienna
Excnange is "a tiorins; an Austrian red
cross bond, with face value of 10 forms
and market value of Is forms and 65
kreuZer; Holland white cross, face value
horins and market value fiorins; an
Italian red cross, face value 10 lire and
market value II forms 80 kreuzer; Ser
Wan bond of 1888. face value 10 francs and
market value tioring 25 kreuzer.
| These have a total face value of $28 So
| figuring the form at 40 cents and the franc
and lire each at 20 cents, liberal allowance
IN each case. On the same basis the market
value of these five bonds is $29 SO. This
group is sold for $115. on lnstallments OF
So month, thus netting the agents $85 64
or nearly 300 per cent profit.
In order to effect the sale plausible
! story is usually told to the effect that the
drawing for the bonds sold is soon to take
| place and that the holder is almost certain
to win prize. But the waiting to some
| stretches away into the weary months
and when they are in a discouraged mood
over what they believe to be their bad luck
they are approached by new emissary o.
| the bond-dealer and in most cases are
induced to exchange their bonds for secu
rites which are represented to be more
| desirable, either by reason of more fire.
quent or larger drawings or by having
larger prize attachments, the victims. o.
| course, paying an additional sum for the