Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-29
BREAKING UP LOTTERY
WORK OF SECRET SERVICE OF
FIcERs AT MOBILE, ALA.
Investigation in Progress Two Years
Arrests Expected In Several
Parts Of Country.

J. E wilkle chief of the secret service
division of the Treasury Department, mas
received a report of the operations of his
assistants who were detailed to break up
the business of the Honduras Lottery Com
pany. 1t Is stated that the report shows
that a great amount OF work has been &C
complished during the past few days, the
principal progress having been made by
Operators T. @. Sauter and H. T. Donaghy,
assisted by United States Marshal G. B..
Deans. The work was performed after sew
eral consultations had been had between
Assistant Attorney General Cooley, Chief
Wilkie and others. the investigation. 1t Is
stated covering a period of two years The
raid in Mobile, Ala, made last Thursday
as stated in The Star at the time. was fol-
lowed by other efforts on the part of the
secret service officers
Information about the Mobile raid. and
arrests reached here. and Assistant Attor-
ney General Cooley was greatly pleased by
reason of what had been accomplished. 1t
is stated that he has given other orders
about the conduct of those who are con-
cerned in the Investigations, and arrests
are expected to be made In different parts
OF the country.
The assertion is made that L. s. Graham
of New Orleans and E. p. Penac of st.
Louis are charged with causing to be print
ed and transported through the United
States a printed list Of the prize winning
numbers In the Honduras lottery, the
charge being based upon the plea of the
and therefore under the ban of the law
There were seventeen employees of the es-
Establishment also arrested, but they were
either discharged or released under small
bonds.
Letter From Attorney General.
Two years ago District Attorney Nields
of Wilmington, Del, began his investigation
and prosecution of the Honduras Lottery
Company, which was organized in Puerto
r,yha ha
pany of New Orleans expired by limitation.
In February, 1905. District Attorney Arm
brecht of Mobile received letter from the
Attorney General at Washington, stating
that the Honduras Lottery Company had its
headquarters in the city of Mobile. Mr..
Armbrecht investigated and found that
agents of the company were in the habit of
receiving the prize winning numbers from
Puerto Cortez, where the main office of the
company is located. In March, 1905, the
collector of customs at Mobile made a
search of the baggage of Gen. w. l.. Ca
bell and his associates when they landed
from Puerto Cortez and found certain lot
terry information. tickets. etc, which were
turned to Mr. Armbrecht that they
pany: F.. H. Damerest, president of the
United States but the papers still remain
in his possession. Nothing of import was
done at that time. however, toward the final
destruction of the lottery business in this
country.
In December 1906, Mr.. Armbrecht visited
Washington as a member of the rivers and
harbors congress and while there held a
consultation with Afford w. Cooley. a new
ly appointed assistant attorney general. A
conference was arranged betwe an these men
and District Attorney Nields of Delaware.
1t was agreed upon that the lottery list is
an advertisement. and therefore under the
ban of the statutes.
Taken to New Orleans.
The list was taken to New Orleans, turned
over to the agents of the company and the
secret service men followed Graham and
Penac to Mobile.
Judge Toulmin authorized a search Of the
plant of 26l st. Michael street, Mobile
Warrants were obtained for the rrest of
Graham, Penac and their employees.
Penac and Graham were arrested as they
went into the street from the plant. The
printers were taken in charge and all taken
to the marshafs Office in the federal build
ing, where they remained until bonds were
given.
A conference between Mr.. j. Legendre,
attorney for the Honduras Lottery Com
1t IL reported that two employees Of the
company. and Mr.. Armbrecht was held and
the hearing of the case was set for Feb
ruary IA, two days after the Mardi Gras
festivities.
1t is reported that two employees of the
Southern Express Company were also ar
rested In Mobile.