Omaha daily bee., 1902-11-20
KNOCKS OUT HOME COMPANY
Supreme Court Says 1t Cannot Legally
Transact Business in Nebraska.
HOLDS THAT THE SCHEME is A LoTrtRY
John Mccormick, Convicted OF Murder
I'm otoe County, ecure n New
Trial on ccoun Of
Technica1ity.
From a stan Correspondent

AAANCCLNf NV l5s-AoptClhl jill hh
extended opinion written by Justice sedg-
wick the supreme court today put the Ne
braska Home company out Of business In
this state by declaring that it lie a lottery
and that It's promoters promise imp Sssiblo
things. The court finds that the number
ing OF certificates In the order in which
applications therefor are received gives
to the enterprise the element OF chance,
which makes II a lottery. II also finds that
while the first twenty-five applicants out
Of 1000 may receive the benefits prom
Used by the company inside OF the second
twenty-month period after the hling Of
the applications the 1000 applicant has
little to hope for in the way OF benefit in
this world. as It will take him seventy
years to realize, and that the company does
not profess to do anything for him in the
next world.
The suit Is in the nature Of a quo war
Tanto proceeding and was Instituted by At
torney General Prout on behalf Of the
state to prevent the company from doing
business In Nebraska. The syllabus OF the
court Is as follows:
l. To constitute a lottery Il is necessary
that O. prize be offered and something of
value be given for a chance to obtain the
prize.
? The prize may. be anything Of value;
q preference or privilege in the distribu-
ton of a common fund among those en-
titled thereto may constitute a prize.
a scheme whereby a common fund
various parties and afterwards distributed
among the parties contributing thereto, and
distribution thereof is made to depend
upon chance. is a lottery within the mean
ing OF our statutes prohibiting lotteries.
T. Contracts In which a corporation, In
consideration of stated payments made to
T.. makes ptom assS which which are the main
possible to perform, are unlawful, being
against public policy.
laws of this state which is engaged in a
buAness forbidden by statutes, or unlawful
Of It's charter and dissolved by proceeding
In quo warranto.
The court states the case as follows:
First, said company shall number and
date all. contracts Issued In regular numer-
lcal order as applications are received at
the home, office and shall keep a record
number of each contract.
Chance 10 Win or Lose.
Sixth. This contract shall be deemed to
be matured within the meaning hereof
IS S" requ iiheTY to s"I be p paid pE out a on c SSGTs who az
lover serial number Of this contract,
either nrst an income OF $50 per month due
second, an amount of money in said home
fund which. wnen added to the income so
twenty months, will equal 1900.
Seventh. When this contract natures
tnt company agrees on seaCn and every
month thereafter. for twenty months, TO
pay out OF the said home fund the sum of
$50 in assisting the holder to purchase a
the home owner or to erect a dwellinS
house on a lot belonging to a holder as
ssld holder may prefer. In the opinion
Does this scheme involve the elements
must be a prize offered and the payment
Of something for a chance to obtain It,
court with an 0NnprffG fahla uvhloh ta A.
f.ySS fsS% q computation based upon the
holder paying his installments according
to his agreement. We do not understand
curacy of the result obtained upon the
basis assumed, and II appears. that the
StS eFeRdf confra eGide would Sf t tee t lSyest sr. mum m.
s swahTS Sespectively with the hrst
sum of $1,000 within the next twenty
months period thereafter; whereas the
making his payments monthly, would no.
have any returns from ais Investment unit
he took his contract and began payment
The advantage OF the fortunate holder OF
she early contract Is manifest. To obtair
of value.
This defendant cannot be allowed tn,
protection of Its charter to do business IN
this state for another reason. Its plar
involves taking money from it's patron!
upon contracts which on its part IL Il
impossible to perform. 1t processes to be I
home company and It agrees and under
taxes TO assist the holders OF its contracts
IN purchasing and paying for a home
II. Issues contracts which, through III,
misfortune Of the holders and the number
OF the application. will bring no assist
ance before the expiration of the ordlnar,
allotment OF three score years and ten
II cannot result In assistance to sucl
holders in procuring a home in this worl,
other.
This company is a branch OF a Kansa
City establishment organized In Omaha
For a long time II is reported to have don,
a thriving business In the metropolis.
first sought the permission to transact IL
business under the law authorizing buildinl
and loan associations. a privilege whicI
was denied II. Thereupon II filed article
OF incorporation and started out in tina
way. 1t was then that the attorney gen
erai interposed his objection. Since thel
the Nebraska parties connected with I
have severed their connection. aud tn,
company was ostensibly bought by tn,
Kansas City company or the parties VIII
compose II. and its business is now belnI
carried on by them.
Buys Massachusetts bonds.
Under a ruling OF the supreme cour
the state treasurer is required to com
plete the contract made some days sine
by the Board OF Educational Lands an,
Funus whereby $500. 900 Of school funds ar
to be invested In 3h per cent gold bond
OF the state of Massachusetts,. The appli