Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-11-22
Nebraska Supreme Court Says
Iowa Home Cooperative
Business is a Lottery
THE MANAGERS ARE WORRIED
They Will Make Hard Fight to Have
the New Law Declared Unconstitu.
tional-Announcement of Complete
Recovery of Former Governor Drake
at centerviIle.
Special to Tlmes-R Republican.

| Special to Times Republican.
/ Des Moines, Nov 22.-The promoters
and managers of the various "home CO.
operative" companies engaged in doing
business in Iowa, and there are a num-
Der of them both of home production
and outsiders, are little worried over
the decision of the Nebraska supreme
court rendered this week in which it is
held that this form Of doing business SO
nearly approaches the lottery in it's es-
sential features that 1t can not be toll
Grated under the Nebraska law. This
Is the first time these companies have
been attacked from that quarter. Near
| ly all this business was being done by
unincorporated societies, firms, part
nerships or associations, because it was
not found convenient to expose the bus
mess by Incorporation. The last Iowa
Legislature tried to head 1t off by pass
| ing stringent law to compel these un-
incorporated concerns to come under
|
Citations and put up securities and make
public their plan of doing business.
| When it became known this was to be
done a number of companies were in
corporated under the general laws for
doing a home cooperative" business
AID these companies are making a hard
| fight to perpetuate their existence. A
strong effort is being made to have the
new law declared unconstitutional be-
cause IL 1t stands 1t means an end to
/ the whole business probably even with
the companies previously Incorporated.
Now comes the Nebraska supreme
court with a decision putting them on
| g plane with the outlawed lotteries of
| the country.
The case came before the Nebraska
court on quo warranto proceedings by
| the attorney general against the Ne
braska Home Company, organized in
i Nebraska, but now doing business from
| Kansas City, and Justice Sedgwiek de-
clared that the company is not only a
| lottery, but Is not settled to do business
because it makes promises which can
not be fulfilled. This company is doing
business by numbering certificates and
| the first one gets first chance at the
money In the treasury. While the first
| % applicants out of 1000 may receive
the benefits promised inside of the 20
| month period after the fling of the ap
| plications, the thou sandth- appli-
cation has little hope for in
| this world, as 1t will take him
20 years to realize and the COM
pany is not in a position to guarantee
him a home in the next world. The
essential features of this as in all of the
| home co-operatives'' whether they
purport to sell houses or horses or dia-
monds, is that some of the certificate
holders are favored before others, either
by the chance of numbering or by
drawing lots or in some other way. The
Nebraska court holds this to be lot
terry and therefore will not tolerate
them. There is an impression that the
new Iowa law will finally be defeated in
some manner, but If the Nebraska prec-
edent Is followed the attorney general
of Iowa, who had declared war on the
whole system of getting money under
various subterfugeS will have an easy
way of reaching them more directly
than by the Iowa law. At any rate the
Nebraska decision is of especial inter-
est in view of the determined effort be-
ing made to break up this class of bus
mess in Iowa.
Private information from Centerville
/ is to the effect that the recovery of
Governor Drake from his recent seri-
GUS injury and consequent illness has
been complete and that he Is now prac-
tlcally as strong as ever. He will be
able to participate in the ceremonies
attending the dedication of the Drake
free library, which will take place In
the second week in December. the ex-
act date of which is not yet fixed. The
library building is not yet entirely done,
but soon will be, and will be occupied.
1t is the gift of Governor Drake to his
city On the occasion of the dedication
a thousand souvenirs will be sold, be-
ing a bronze medal with picture of the
library building on one side and por-
trait of Governor Drake on the other.
There will be a special train from Des
Moines for the accommodation OF
friends of the governor who wish to go
to Centerville and take part in the fes-
tivities. The library building is said to
be handsome one.
Insurance policies amounting to Sl0,-
900 have recently been paid to the fam
lily of the late President Beardshear, of
the Iowa State College. President
Beardshear was an eminently practical
man.
The Gregoris case in Dallas county,
which is almost a Des Moines case, was
not postponed as had been planned
After the witnesses had been excused 1t
was found that Gregoris was suffering
so from confinement in Jail that 1t was
decided the trial should take place at
once A number of the Greek colony in
Des Moines will go to Adel Monday
to give testimony in the case. The ac-
cusation against Jim Gregoris is based
largely on his alleged confession to one
Peter Hriskos in Des Moines when it
was said Gregoris was drunk. He then
boasted of having killed his cousin in
Perry. But the defense claims that the
story of the confession was only
scheme of rich and willy Greek to get
rid of Gregoris by railroading him to
tha nauiten tiary ao that ha would be out