The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-05-21


Farm and Home, published by the
Orange Judd Company at Springfield
Mass, in its issue of November IS,
1918, has the following to say about
the Nebraska Home Company:
Supreme Court Puts Out OF Business
Nefarious Home Company.
DO the contracts used by the above
concerns National Mercantile Co.
Ltd, of Van Couver. B. c., now bank
rupt, Standard Home Company of
birmingham, Alabama, American
Canadian Securities Loan Co. of Den
yer, Assets Realization & Guaranty
Corporation Of Dallas, Texas, En-
Pire Reality & Mortgage Company, of
birmingham, Alabama, The Capital
Security Company of Norfolk, Va.)
named above constitute a lottery and
are such contracts unlawful as against
public policy.
so far as these questions applied to
the notorious Nebraska Home Com
Pany, they were fought out fully be-
tore the Nebraska supreme court. 1t
decided both questions against the
company, whose charter was forfeited
and its business closed up. The court
said. Judge Sedgwick writing the
opinion:
To constitute lottery there must
be a prize offered and the payment of
something for chance to obtain il.
he attorney general has furnished
the court with an experts table,
which IS derived from a computation
based upon the issuing of contracts
upon lOOO applications received at the
same time, and each holder paying his
1nstallmentS according to his agree
ment. We do not understand that the
defendants attorneys deny the ac-
curacy of the result obtained upon
the basis assumed. 1t appears that
u holders of the lowest numbered
contracts would get their first install
ments, respectively, within the first
twenty-month period after the con-
tracts were made, and would receive
the full sum of $1,000 within the next
twenty-month period thereafter;
whereas. the holder of contract No.
lOOO, although making his payments
monthly.
Would not have any return from
his investment until more than
SEVENTY YEARS from the
time he took his contract and be-
gan payment.
The advantage of the fortunate
tliN SdiIJ llulllDGT is MANI
fest To obtain such preference Is
to obtain something of value. TT is
idle to say that a sum or an obliga
ton for sum and payable TODAY,
or at a nearly date, is of no more
value than an obligation of equal
amount, without interest, payable at
a remote and indefinite time (Mac-
33o-345.)
Where the Lottery Comes In.
/. The question, then, is whether
the element of chance enters into the
scheme by which one contract holder
obtains this advantage over another
The contracts are to be numbered
and dated I'm regular numerical order
as applications are received at the
home: office" The applicant must take
his chances as to how many applica-
tons may be received at the same
time his is received. and. if there are
several at the same time. he must take
the chance of preference over other
applications received with his.
Oudge Sedgwicks verdict here
quotes with approval several decisions
OF federal courts that such chances.
constitute a lottery. He holds that
the victims payment for contract to
the solicitor is the same as buying
ticket i'll lottery)
Contract Is Against Public Policy,
Therefore it is Unlawful.
z. This defendant cannot be allow
ed the protection of its charter trade
business in this state for another rea-
son. Its plan involves taking money
IRON its patrons upon contracts which
on ITS part it is impossible to perform.
1t processes to be home company"
and It agrees and undertakes to assist
the holders OF its contracts "in pur-
chasing and paying for a home" 1t
issues contracts which, through the
misfortune of the holders in the num-
bering of the applicants, will bring no
assistance before the expiration of
the ordinary allotment of three score
years and ten. 1t cannot result in as
sistance to such holders in procuring
a home in this world. and it does not
profess to render assistance in the
other!
II it is intended that there will be
new patrons, whose monthly pay
ments shall be used to make good
the company's promise to holders OF
earlier contracts not otherwise provid-
cd for. the situation is still worse.
The company cannot furnish the
funds TO assist these new patrons to
obtain homes before the time will
come, when in the ordinary course of
nature they cannot avail themselves
OF such assistance. Their own pay
ments cannot do or help to do so.
These are pledged to make ND a defic-