The evening times. [volume] (Washington, D.C.) 1895-1902, 1900-12-22
BoND-INVRSFMRNT SCHEMES.
Assistant Attorney General BARRETT.
views Regarding Them.

Assistant Attorney General Barrett,s
Views Regarding Them.
Speaking of so-caIled bond-inyestment
schemes, Harrison ]. Barrett, Assistant
Attorney General for the Postofilce De-
partment. said yesterday that he had Civ
en- careful study to these schemes.
Indeed, for the past two or three
years, he said. u have been at odd times
gathering information thereon, and, while
the plans and operations that are now be-
fore me are, in my judgment, in some of
their features. IN violation of the postal
laws, yet am thoroughly convinced that
the basic principle underlying the bond
Investment proposition Is sound; and II
the features which have resulted in giving
unequal advantages to persons similarly
situated were eliminated. and the returns
promised were such Tat the proposition
could be safely financed out, so that all
persistent investors could be reasonably
sure CT the returns promised. the objee-
lions to them would be removed The
Fourth Assistant Postmaster General has
selected an eminent New York lawyer to
examine and give an opinion upon the fea-
sibAity Of seven different schemes which
were selected as typical Of ali those before
me.
The questions presented in these cases
were; First, whether or not either or all
CT the schemes are lotteries, so-calIed
gift concerns. or similar enterprises offer
ing prizes dependent upon lot or chance
within the meaning of sections 1884 3e2a
and z64f. Revised Statutes, as amended.
Second. whether or not either OF all of
them are schemes devised fer the purpose
OF obtaining money CT property through
the mails By means Of false or fraudulent
practices, representations, or promises in
violation of sections 1884, 1928. and 4041,
Revised Statutes, as amended. or are
schemes OF articles to defraud within the
meaning of section $3.50 as amended.
Three elements are necessary to con-
stitute a scheme. a lottery, gift enter
prise, or similar scheme for the award OF
prizes by lot or chance. Consideration.
prize, and lot or chance. Unequal returns
among persons similarly situated amount
to prizes, and an advantage which enc
person may obtain over another may also
be prize The word lottery. has very
definite Specification. IN its narroWest
sense il means a scheme whereby certain
prizes either in money or In property,
are distributed among a number of per-
sons similarly situated by favor of the
lot 1t is not necessary. in order to con-
stitute scheme, lottery, or similar en-
terprise offering, prizes dependent upon lot
or chance. that there be blanks. for even
If each person who participates therein
receives & reasonable return upon the
amount invested. il others similarly sit
uated receive larger returns IS the result
of chance, the scheme is within the stat
ute"
When asked whether the auction sale of
articles accumulated in the Dead Letter
Office, which is taking place now, comes
within the jurisdiction Of this statute, Mr..
Barrett said he had not Investigated the
matter to enable him to give an opinion
on the case He admitted however that
as the packages are closed against inspec-
tion previous 10 the sale, the transaction
resembles a game of chance and lottery.