Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-02-17
and Ryan, who was present in person.
stated that while he had made guarantee
Of mar Cept in hia letters and 1ifera
49, Eleventh Street
49, Eleventh Street

and Ryan, who was present in person.
stated that while he had made a guarantee
OF per cent in his letters and literature,
he had actually earned that amount. and.
therefore, the dividends had not been paid
from the principal or from other people
money, but from the actual earnings. and
that the principal was intact, either In cash
or other valuable assets. and that. there
fore. II he had made a guarantee which the
Post Office Department had not and could
not, recognize, yet, a matter of fact, he
had earned that money to pay the divl-
dends
made the investigation the department was
unable to contradict this statement. We
gave him the opportunity to prove his
statements, but suggesting to him that we
would have the inspectors go over MS
books if he would give them access to them.
to ascertain whether or not he had paid
dividends from the principal or from earn
ings only.
ed. the principal intact. we asked him
whether he would return to the investors
their principal and such interest as they
had actually earned and was to their
credit This he said he would do. and
would give satisfactory evidence that he
was complying with his promise. and he
stated he would eliminate from his scheme
any guarantee Of profits and would simply
state that If there We're any profits he
would distribute them up to a certain
amount.
'In6 case was, therefore,, referred 10 inc
inspector in charge, Dice, at ST. Louis. who
made a full and satisfactory examination
Of their books, and in submitting his report
to the department recommends that the
case should be closed.
Application of the Law.
'As to the application Of the law to these
schemes, on the ground that they are lot
teries, might say that there seems to be a
very general misapprehension by the public
as to the scope of the act of September 10.
1890, popularity known as the lottery act
at is evidently supposed that this statute
prohibits the use Of the mails not only to
lottery enterprises, but to every sort of
gambling device as well; and the Post Of
fee Department has been severely criti-
cised, especially, because it has not sup
pressed these many concerns which have
been Of late so widely advertising and car
| rying on by mail their so-called systems
Of betting on horse races, soliciting money
for investment in such schemes, and un-
doubtedly receiving remittances aggregat-
ing very large amounts.
or pools on races or like events constitutes
a lottery within the meaning OF this act.
does not seem to have been passed upon by
any federal court: but the courts of the
several states have held in numerous de-
csions that the laying Of such bets or
wagers. this formation of such pools,
Is not an offense against statutes prohibit
ing the operation Of lottery ENTERPRISE.
| For example, in People v. Reilly, 80
Michigan. 1884, it was held that pool selling
is not "a lottery within an ordinance
against keeping any lottery, policy, bucket
shop. board of trade, or any other scheme
wheat, or other property. This decision
was explained in the later case of People ".
Elliott, to be found In volume "a of the
Michigan Reports, at page 264 Other de-
~ n 10 ga oct oil
Gray. Il Hun On. - 4O2; People V. Fallon.
152 N Y. 12: Brennan V. Brighton Beach
Racing Association. SO Hun, 1888
Opinion by Mr.. Thomas.
"In an opinion dated January 2, 1894.
upon the question whether money may be
received each day through the mails from
various correspondents, to be placed by the
recipients as bets on certain horses entered
for the races. without violating the pro-
visions of the postal laws. John L. Thomas,
the then assistant attorney general for the
Post Office Department said:
1.-The use of the mails - to carry
on correspondence for the reception OF
money which parties desire to bet upon
certain horses while undoubtedly a gam
bling scheme, does not come within the
terms Of the aEti-lottery act. No award is
made depending entirely upon chance or
lot the Idea being that the investor exer-
cises his foresight, sagacity or design in
sele Getting the horse upon which his money
is placed. full opportunity being afforded
him for that purpose.
apparently the Post Office Department
would have authority whatever for ex-
Guiding from the malls matter relating to
these horse race gambling enterprises, on
the ground that they are lotteries. for. ac-
cordng to the weight of legal authority
they are not SUCH.
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