Evening star., 1938-12-30
Sweeps Indictments
Faced by 3 After
Two-Year Probe
Conspiracy to SmueeIe
Tickets and Use of
Express Charged
BACKGROUND

BACKGROUND
Although United States Co..
ernment has not recognized the
Irish Sweepstakes lottery, it has
benefited indirectly. OF $1775,-
900 In major prizes taken by
americans on the Cesdrepitch
(OctOberJ alone, Treasury er-
perts at the time estimated $685.
900 1Oould be collected in tares.
b the Associated Press.
NEW YORK, Dec. 30.-Eight per.
sons, described by Government off,
Qals as heads Of the biggest Irish
Hospital Sweepstakes ticket-selling
ring in the Nation, faced Federal
charges today, as the climax of a
2-year investigation in II States.
The eight were named yesterday
in indictments which included
charge of using the express to trans
sport tickets in interstate commerce
and conspiracy to smuggle tickets
into the country, distribute them
and return the money to the Irish
promoters.
The eight indicted are Gerald
Kelly, John w. Kelly, John w.
Kelly, I'd; John R. Kelley, Connie
Neenan and Clifford Burgett, all of
New York, who were indicted in
1896 on charges of using the mails
to ship tickets; William Mead, also
of New York and Joseph Mccarthy
of Philadelphia.
S25,0OO, 900 Worth in 1896.
John L. Delaney, assistant United
States attorney, said that in 1896
the defendants put out $25,000,00C
worth of tickets at $3.50 each.
The investigation centered prin-
cipally in Connecticut, Georgia, New
Jersey, California, Florida. Pennsyl-
vania, Wisconsin, Nebraska, Ari-
zona, Kansas, Massachusetts, anc
New York, Delaney said, but he
added the ticket selling covered the
country generally.
Mr.. Delaney said the eight worked
directly for the promoters of the
Sweepstakes in Ireland and distrib.
uted the tickets in the United States
through some 700 agents whom they
appointed. These in turn supervised
more than 5000 statesmen, he said.
Postal Inspector Roy Richards
who, with Agent Edward Lovern
| conducted the inquiry, called the
Kelly outfit" the largest, Delaney
said.
If convicted on all counts the de-
PENDANTS would be liable to a tota'
of "a years in prison and s2100t
fine each.
Despite this country's laws prohib.
iting lotteries, attempts to prosecute
distributors or statesmen of the Irish
Sweepstakes tickets have been few
The business" has grown and each
year thousands of Americans spenc
millions in hopes of cashing in or
one of the big prizes.
Salesman Gets Free Tickets.
The tickets usually reach thi.
country in books of 10 and 1t Ii
customary for the salesman to ge'
one ticket free for each book he sells
Before the race on which the sweep
is based, each customer is supposed
to get a counterfoil to show hi,
number Is off1cially listed for tht
prize drawing.
Faxed tickets and even spuriou.
counterfoils have been uncovered II
the past, but the possibility of beins
50 duped has not dampened the
public's enthusiasm.
In the Irish Sweepstakes on the
English Derby at EPSON Downs las
May. for example. Americans spen
approximately s6,800,000 for ticket.
and comparative few collected
S3,920050. Five held tickets on tn.
horse that won and took S15000t
each. The vast majority got moth.
ing.
For the Cesarewitch race at New.
market, England, in October. Amer.
leans bought approximately S6.00O,.
900 worth of tickets and won S3,489,.
!62. This time seven had S15O.00(
tickets, seven more had tickets
worth $4,000 and four collected
$50, 900 each.