The Washington times., 1922-07-18
EXCHANGEPOO[ .
HUGE SN|NDLE,
WRITER SHOWS
Thousands Cheated by Clear
ing House Lottery in
Large Cities. 80
By EARL L. SHAUS,
Universal Service.

NE" YORK, July 1S.-Huge
gambling and swindling pools. oper.
ated in all the large cities Of the
United States. were uncovered by
Universal Service here today.
Clearing House exchanges are used
for the basis of the betting.
The first four digits of the amount
in check exchange make up the
lucky number for the day.
For instance, II exchanges of
checks in the clearing house are
S7S2, 2,756, ,304. the number 1927 would
be the lucky humber.
Coupons are printed and sold
broadcast and the person holding the
coupon with the number that cor.
responds to the clearing house report
Is the winner.
The coupons are sold for rs cents
each.
The odds are 500 to l. Thus the
winner receives $3.50 for his 25-cent
investment.
Game Is Crooked.
But the game Is crooked.
Sharpers backing the pool seek ad-
vanced information on the clearing
house exchanges SO they can with
hold the lucky coupon.
They are thus enabled to collect IS
cents each from the tens OF thou
sands OF suckers and at the same
/ time see that there are no winners
and thus save the $3.50 daily.
| The operation is very much like
| the old Louisiana lottery, except that
In that famous scheme a person had
a chance to win.
Information regarding these opera
tions came TO Universal Service In
letter from I. H. Porter & Co. II
read:
IF II is convenient for you TO get
and telephone me every morning at
a:15 the clearing house exchange
rumber. only the first line, for ex-
ample. 556,S00. 900 always nine fig
ures). ! am willing to pay 800
day for every day I receive II before
9:20 in the morning.
Willing to Make Contracts.
"If It is possible TO get this infor'
nation for me. write at once and I
will 20 into contract with you.
(Signed) IT. II. PORTER & Co."
This letter indicated that I. II. Por.
ter a Co, is very anxious to get this
information two hours and Is min
utes before II is made public as the
exchanges are always published at
1880 a. m.
Inquiries revealed the operation Of
the pool.
Consequently called at the Porter
offices. 2350 Seventh avenue. to ask
why he desired the information. Por.
ter denied that he knew.
IT am a broker" he said. "and I
am trying to get this information
for a client who has agreed TO pay
$50 day for IT, ! have offered you
800 and propose to keep $50 day
for my commission"
He would not give the name Of
the client. Then I asked him II he
knew anything Of the pool. He an
swered:
"I have heard OF such a pool. I
will ask my client about Il and let
you in on II. The percentage must
be tremendous. It's a game to cheat
the cheaters."
Before / left Porter had agreed to
give me $25 a day for two days in
addition to the original 500 he prom
ised. After that ! was TO be per
nnitted TO play the inside of the pool,
where the percentage Is tremen-
dous" where they cheat the cheat.
ers."
Code Is Invented.
The reason two days was to
elapse before I would have been let
lin on this was to give Porter an
opportunity to see II I could de-
liver the advanced dope. I. see
right now that I will be shut out.
Then Porter gave me the code
to use in telephoning the informa-
ton to him. The code Is "Elgin
watch" For instance, II the ex.
changes are sS76,543.S01 L wou d
telephone him: "TAWN. IGTHE." "
On leaving Porter 1 went to the
manager Of the clearing house.
This swindle." he told me. rs
being operated in all large cities.
1t Is very active in Boston, Chicago.
Philadelphia. St. Louis. Baltimore,
Cleveland, Washington, Pittsburgh.
Detroit, and other cities where
Gearing house exchanges are pub.
lished.
Repeated efforts have been made
to get this information in advance.
Men have even tried to bribe me.
They have also approached the as.
sistant manager and numerous
clerks.
They used to gamble on the
last four digits Of the exchanges.
To break up the practice we began
to put naughts in place Of these
numerals. Then they began using
the first. four digits, but of course,
we can't use naughts there"
The pool I learned Is quite similar
to the common baseball pool and
the betting on stocks and bonds
| sales.