Elmore County Republican. [volume] (Mountain Home, Idaho) 1910-1915, 1913-02-22
FINED UNDER A
PLEA OF GUILTY
G. w. Thompson, President Of the
Medbury Valley Investment
Company, Fined $1,000

lottery purposes, pelHS euleTeu yes
terday in the federal court by G. w.
Thompson of Lewiston, president of
the Medbury Valley Investment COM
pany and one of the principal defen-
dants in the case of the UnitedStates
against the officers and agents of that
all the other indictments
were dismissed upon motion of the
federal district attorney. Judge
Dietrich fined Thompson $1,000. This
was paid.
The filming of the investment COM
pany's president and the dismissal Of
all the indictments against others con
nected with the company marks the
close of a criminal action that has
been in federal court since July. 1912
Previous to that time the question of
whether the real estate company was
using the mails for lottery purposes
or not was investigated by a grand
jury which failed to return an in
dictment This was March, 1911, pre-
vious to the time when the actual
lottery or drawing of lots for certain
property had been held. In July,
after the drawing had been held
the matter again came before the
grand jury and five promoters of the
scheme and six of their agents were
indicted.
At the trial held in United States
district court the jury failed to agree
two holding out for acquittal. The
case was tried November, 1912, and
because of dismissals only two defen-
dants, Lawson G. Bradley of Boise
and Gaylord w. Thompson of Lewis
ton, were tried. Upon the jury fail.
ing to agree the prosecution an
nounced that the cases would be re-
tried and the cases were on the calen
dar to be set for trial at the pre-
sent term of court.
The scheme which the government
claimed was a lottery and therefore
illegal when the mail was used, was
started August, 1910, when the in
terested defendants organized and in
corporated the Medbury Valley In
vestment company for the purpose ot
exploiting land located near Ham
nett, Medbury Valley, Glenns Ferry
and King Hill. This was only one o1
several similar companies.
Four hundred acres of land was
purchased and subdivided into 965
tracts. Upon many of these tracts
houses, stores and other improve
ments were made by the company ant
contracts each costing $3.50 were made
out and sold by agents of the firm
After all these chances were sole
there was a lot drawing by all the
contract holders in which each one
took chances upon securing the impro
ed property. The members of the rea
estate company claimed that they
started the scheme upon the advice
of reputable local attorneys who hat
asserted it was not legally lottery.
The matter was first brought tt
the attention of the local postoffic'
officials by a purchaser OF one o
the contracts, living in Omaha. HI
inquired whether it was legal to U.s.
the mail for the transaction of sucl
business. An investigation was i'm
mediately started. 1t was found tina
the activities OF" the company
agents had extended all over th'
| northwest and intermountain countr,
and as far east as Nebraska wher'
many contracts were sold. The com
pany officers claimed as defense tha
| Iuey ulu uOI huoW IuSA o6Oh1o "OA
offering contracts with the promis
of lottery although drawing ha'
really been intended after the con
tracts were all disposed Of The gov
ernment attempted to prove that the
really did know what their agent
were doing and submitted correspond
ence to prove that claim.
| The Ca. a~an a. imnortant one D., q J,
it was the first of its kind eve
fought in this section Of the country
There are at present, according +
the postoffice officials, several sim
liar cases pending in Washington
oregon and Montana where indic1
ments were returned for like rea
estate schemes.
The fact that the president of tn
company pleaded guilty to using tn
mails for lottery will in no way al
feet those property owners in the dis
trict where the lots were dispose
Of by chance-Statesman.