The Montgomery advertiser., 1907-04-01
UNCLE SAM IS AT WAR
 WITH HONDURAS LOTTERY


 which the, government offcers made or the lottery company's printing plant a Mobile. in the early morning hours oi January 24, 1907. Tn this raid twent, printers were arrested and the lotter, officials were evidently expesting 1t fol they were on hand when the men were arraigned in court that day and prompt ly had every one bonded for appear ance later. This action had been pre- ceded in May, 1906. bv the arrest oi John M. Rogers of Wilmington. Dela- ware, who was charged with printing the company's tickets and other litera ture. That case had been allowed to stand and following that arrest the Se' cret Service continued to follow UT clues which brought the action at Mo- bile ..
 MT. Rogers is we'll known in this city. having filled positions of trust politically and conducted successful- ly a large printing enterprise for many years
 One of the most interesting features of the case is that the men named are all well known Tn their respective cit les; they have the respect of their fel- low townsman; they have never been known as other than law abiding cfti- zens, with the exception of their con nection with the Honduras lottery; and their fellow citizens were well aware of this.
 What the outcome of the cases will be remains to be seen. Doutless the principals will give the government a legal tussle. In fact they have already engaged the best legal talent and mean to carry the case to the end unless some unimportant fines are assessed against them. These they would prob ably pay. But 1t is said Uncle Sam says s250.000 in fines and not to me says the company.
 History of Company.
 Since the arrest at Mobile and the indictments following there have been many conflicting and inaccurate re- ports printed regarding the company but the statements in this story are really exact. There could also be many more interesting statements made, but tack of space forbids. When the old company last operated in New Orleans the capital prize was $600.000 and the whole tickets sold for $40 with frac- tional tickets obtainabIe in propor- tion, and the prizes sealed down to tri- vial amounts.
 Beginning with the Honduras opera tiuns. the first capital prize was made $75,0U0 with whole tickets at $5 Af ter several years it was found that patronage did not warrant this and the first prize was sealed to $30.000 with whole tickets at s2 and fraction al tickets in proportion. Then after this had been in operation for several years it was found that patronage warranted an increase and in Decem- Der. 1904, the first capital prize was made s45.000 with whole tickets at S2 and fractional parts in proportion, with the prizes running to $12,000, $6.- 900 and so on down to SIP This was in force when Uncle Sam got busy
 As in old days, the best known na- tional banks of New Orleans contIn- ued to endorse the company's fairness fn the drawing and prompt payment of the prizes. these endorsements being printed with names of the banks pres idents on the back of the tickets and "n the drawing list and other litora- ture. These banks were originally aS follows: States National Bank, John H. OConnor, president; New Orleans National Bank, A. Baldwin, president: Union National Bank, stephen Chala. ron. president: and Citizens Bank of Louisiana. George W. Mott, president. Later the State was omitted. leaving Baldwin's bank to head the list. Later the president of the Union was chang ous ocFcId dl dEO dnOLHtT CnanEe was made with MT. Baldwin's bank still leading. but the Citizens was omitted and its place taken by the United States Safe Deposit and Savings Bank, A. B. Wheeler, president This latter bank was closely connected with the Baldwin institution, but several months ago, became independent.
 In July, 1906 the lottery managers last used the banks endorsement Why? Simply because they knew Uncle Sam was watching them and they did not want the bank officials entangled In the actions at law which they knew would come sooner or later, probably sooner they believed. During recent months the title of the company was even omitted from the drawing lists in the expectation of making a legal point of this when government action finally came about. This their law yers will use in argument before the United States jury. Other techicalities will, of course, be taken advantage of.
 What connection with the lottery MT. Baldwin, the bank president, had may be presumed from the fact that his name headed the list of endorsers, also from the fact that E. J. Demar- est. who succeeded Paul Conrad as president of the company. formerly printed at the top of his letter sheets the instruction Address by Express, E. J. Demarest. care New Orleans Ma tional Bank" MT. Baldwin Is also vice president of the Southern Express Company The company always con- tinuod to print Its title as follows "oF-r -Iras National Lottery Company. houisiana State Lottery" as a con stant reminder of it's being the old en- terprise continued under new name. MT. Demarest had been an employe of the original company and arose to his position as executive of the new one in the same way that men go from lower to higher positions in any en- terprise. He resigned in April. 1900 taking effect in October, when his brother, Walter J. Demarest, took the Presidency. This Demarest was Pres ident until the unfortunate January of 1907.
 Beauregard and Early.
 It will he remembered that Generals Beauregard and Early were the com missioners who supervised the old company's drawings. They were suc- ceeded in early Honduras days by Gen William L. Cabell and Gen. Charles J Villere of New Orleans. The latter afterwards 3 resigned, owing to ad- vancing age, but advancing age did