Omaha daily bee., 1902-09-28
PROUT SAYS IT IS LOTTERY
Files Briefs in the Case Of the State Against
the Home COMPANY.
D. {! THOMPSON IS STILL UNDECIDED
N~IeEenhnd, the Pierce County MUIR
derer, IL Much Better and Will
BE Able 20 stand Trial
This week.
{! THOMPSON is STILL UNDECIDED
CFrom a stan Correspondent)

LINCOLN, Sept. 27-Cspecial. Att rney
General Prout has filed his final brief In
the quo warrsnto proceedings brought by
him some time since on behalf Of the state
10 Dust the Nebraska Home company from
doing business In this state. This case
is Town for hearing before the supreme
court, October z. The company operated
extensively for a time in Omaha. The
method was to enter into contracts with its
patrons ostensibly to enable them to pur-
chase homes and pay for them. All OF It's
contracts we're numbered and dated. A
fee OF SO each was charged for registering
and dating them and each holder Of a con-
tract was required to pay $1.35 each month
In to the company. OF this amount the
company bound itself to deposit in some
approved national bank in Omaha 81 as part
Of a trust fund held by the bank for the
benefit Of contract holders. This fund could
only be drawn upon in a specified manner
by the company officials and for the bene-
At of contract holders. The remaining 80
cents Of the monthly charge went to the
company ostensibly for its services, in con-
Quoting the business.
Each contract provided that It should
mature whenever there should be over
and above what was required to be paid
out on contracts Of a lower serial number
than its own. either an income Of $50 a
mOhbh u Nv hbAAS Ahhu AApn
holders or an amount of money in the home
fund which, when added to the income due
from contract holders for a period of
twenty months, would equal 81, 1000.
The company agreed that upon the
maturity Of each contract Il would pay the
holder $50 a month for twenty months to
enable him to purchase a home, pay off a
mortgage on his home or erect a dwelling
house on a lot belonging to him. The
deemed by the company to be worth $1,000,
Whereupon the company would make the
purchase and put him in possession. After
maturity Of the contract the holder was
required to pay 1915 a month until he
paid in $1,000, of which payment s. went
into the home fund and IS cents to the com-
pany. Failure to meet a payment when
due, rendered all sums to be paid under
contract due and collectable. The contract
also contained a provision, making the sec
rotary Of the company his attorney, In fact
irrevocably, with full power to sell or dis
pose of the holders rights in case he be-
came delinquent.
The attorney general contends that the
use Of $1,000 without interest until it can
be returned in monthly payments of IS each,
OF a present Of $1,000, IL the person re-
neiving It will pay interest thereon fer
sixteen and two-thirds years, at 6 per cent,
Is sufficient to constitute the prize essential
10 a lottery.
THE $1,000 used by the holder Of con-
tract No. l." says the attorney general in
his brief, "is. with the exception Of a few
dollars. furnished by subsequent holders.
The use of this money is worth 6 per cent
per annum, and II properly loaned for the
benefit Of those who created the fund, can
be secured by first mortgages on improved
farms. The cities and towns are full Of
reliable business men who will use $1,000
belonging to holders of unmatured con-
tracts, pay them for such use s. a MONTH
6 per cent interest-for sixteen years and
eight months, or 81 900, and at the end of
that time pay them back every dollar Of
their 1000.
The privilege of using 81 900 until 1t can
be returned in monthly payments OF IS
without interest will cost the earliest
holder $50. and the value Of such use or
prize, as already shown. is 1000. The
latter sum is largely in excess OF $50, and
the excess OF 1917 is something for nothing"
The attorney general contends that a
man cannot give good money for nothing as
a business matter. honestly and fairly.
Many of the provisions Of the contract are
discussed In the brief to show that the
scheme is nothing less than a lottery. and
the attorney generals arraignment of the
Bcheme Is a scathing denunciation.
In the case OF George A.. Neal, the firm
of Bartlett. Dundy & Martin Of Omaha and
Comm & dement's OF Lincoln are counsel
for the company.
Thompson Stin Undecided.
While d. e. Thompson still says he is
undecided as to whether he will accept the
Brazilian ministry or not. his friends are
of the opinion that there is no doubt about
"a - IA A.
him from giving a decision. they say, IL
how to handle his newspaper proposition
A number OF men out in the state who
have been associated with Thompson II
various business enterprises went into the
newspaper company on his request and be
cause they thought Thompson would b,
here to run It. He does not desire t.
throw down these friends and It is probable
his final decision will not be announced un,
ill he has heard from them.
NIeEenAnd Gets Better.
Gottlieb Niegenhnd. the Pierce count!
murderer, who was brought to Lincoln
week ago because II was feared he would b.
lynched by indignant citizens, will prob
ably be returned next week. He has beef
confined in the penitentiary hospital eve
since his arrival. but the attending ply
slcian said today that ne could be removes
by Wednesday. An ofieer representing tn
county attorneys ONCE will come for him
his trial having been set at a special ses
sion Of the court called to dispose OF him
From Prison to Mad House.
Governor Savage today issued an orde
for the removal Of Harry S. Wilson, a con
Wet. from the penitentiary to the hospita
for the ineurable insane at Hastings. VIII
son was received at the penitentiary Jun
last from Colfax county, under sentenc
OF four years for robbery, but has sine
become hopelessly demented and the peni