The herald., 1897-06-09
IS A GOOD SCHEME
DOUBTS AS TO IT'S BEING
GAMBLE
International Loan and Trust Co. 4
Business to Be Judicially Defined.
Patrons Who Invested

The International Loan and Trust
company is a rather high-sounding title,
but the courts will have to decide If the
business done by this organizati ton
squares with the name, and also with
the law.
G. H. Hastings, one of the stockhold-
ers, is plaintiff In a suit which will be
filed today in the superior court, ant
In the complaint he alleges that the
business which the International Loan
and Trust company is carrying on is in
the nature Of a lottery, and therefore
under the ban of, the law. If it is a lot
terry he claims that he with the other
stockholders, would be liable for fines
and forfeitures, and be also damaged
in reputation as we'll as pocket. For
these reasons he asks that the standing
Of the company be judIcially deter
mined.
The plan of operations outlined in the
circular spread abroad by the Interna-
tional Loan and Trust company is not
altogether new. The plan was to issue
$4,000 debentures monthly at 81 each
and open to all purchasers These de-
bentures were to be held twenty years
when the amount paid for them was tc
be refunded with compound interest
So far, 30 good.
But right here the little joker ap.
pears in a provision that every fiftieth
debenture purchased was to entitle the
holder TO loan from the company OF
from IS to $1,000. Such one would re-
ceive a paid-up debenture from the COM
pany for the amount of his loan. This
he was to sign back to the company.
and after 1t was appended to his twenty
year note, it was to be held as security
for the amount Of his loan. Then the
cash was ready for him. The amount
of his interest payments on the loan was
not stated. In addition to this the cir
cular set forth an approximation deben-
ture scheme very similar in its details
to the approximation prizes in lotteries
In his complaint Mr.. Hastings em-
bodies the prospectus of the company
a copy of the monthly debenture, ons
of the blank twenty-year promissory
notes, a paid-up debenture. and all the
various blanke the company uses. He
thinks they are all a subterfuge for lot
terry prizes.
A rather odd request Is made by the
incorporators in this precious circular
to the effect that all mail be sent by
express. Under a recent statute mail
matter excluded from the United States
mails cannot be carried by express, and
any infringement of this law renders
the person or persons liable to a prose
cution for felony.
Chauncey X. Neale IL credited with
being the originator Of this scheme, and
after his arrival in Los Angeles about
eight months ago, met w. w. Norris
r. B. Dickinson and a Mr.. Porter who
is now travelling in Europe. The incor
| poration was filed, and under the term!
of the incorporation papers the company
was authorized to do safe deposit bust
ness. issue debentures, make loans, ant
to do the ordinary business of a trus
company. w. w. Norris, who is thu
general agent, is now travelling with
Promoter Neale through the southern
states, appointing agents and presenting
the scheme to prospective buyers OF
debentures. The local offices of the COM
pany are in the Byrne block.
Quite a number Of prominent people
are said to hold stock in this new enter
prise, and it Is currently reported that
prominent law firm has given the
opinion that the scheme cannot be re-
garded as q lottery Indeed, it is said
that the attorney general has given q
similar opinion. Be that as 1t may, the
matter will be examined into judicially
and the niceties Of the business inquired
into in open court.