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Washington Times
Washington Times
Contributed by barbara-dave

Description: Lottery Raid Page 1

Date: November 13 1907

Newspaper published in: Washington, D. C., USA

Washington Times November 13, 1907 Lottery Raid Page 1

Big Men Said to Be Behind Scheme - Had Many Branches.

Small Share Was Given Dupes - May Involve Express Companies.

Chicago, Nov. 13 - The biggest lottery imposition in the United States which has been running for more than twenty years, with headquarters in Chicago, was exposed last nigh by arrests in this and other cities. The United States Secret Service claims that the promoters of the scheme have made millions of dollars, and that there are big men behind it who can be reached by the prosecution of those now under arrest.
Under the name of the Old Reliable Guaranty Loan Company the company maintained nicely appointed offices at 225 Dearborn street, 371 Washington street, and 12 Sherman street, and a large printing establishment known as the martin Fountain Printing Company, at 26 Randolph street. Secret Service Agents Harry T. DONAGHUE, Otto F. KLINKE, and Lawrence RICHEY, who have engineered all the big lottery exposures of recent years, raided all four of those establishments last night and obtained thousands of tickets, returns from agents and the plates from which the tickets were printed.

Head of Concern Grew Rich.

D. H. JONES, alias D. H. KISSAM, who has lived in very expensive style at the Great Northern Hotel, and is well known about this city, was arrested as the head of the concern. He has been in charge of the concern since its inception in 1883, and is said by the Secret Service men to have acted as .... between of .... also grown .... the profits.
.... Miner & .... after in the ... in the real ... were launched ... confidential ... Walter SCHIMBEY, the bookkeeper. At midnight JONES, MINER, and Miss GREEN were arraigned before United States Commissioner FOOTE.
George E. GEISLER, the St. Louis agent of the concern, was arrested in that city, and a large number of lottery tickets and records were confiscated. Frank FALKNER, agent at Fort Wayne, was arrested at Indianapolis by Agent KLINK, and John T. MARKLAND was arrested at McKeesport, Pa. All were held under heavy bonds.

May Catch Express Companies.

The Secret Service men, from the records that they have obtained, expect to make more than 200 arrests in various cities in the country. An attempt also will be made to involve the express companies as agents or accomplices, under the Federal act forbidding lotteries. Commissioner FOOTE held JONES without bail. JONES is more than seventy years old, and very feeble.
Under its various names the lottery has been conducted in the regular lottery manner, except that the process has been all out of proportion to the risk and the commissions have been very heavy, putting hundreds of thousands of dollars into the pockets of the promoters yearly. It is believed that even with the percentage in their favor, the lottery managers did not live up to their promises to their dupes, and failed to share receipts as advertised.
Judging from the records now in the hands of the Secret Service agents, between 150,000 and 200,000 tickets were sold monthly, and some times more. hardly 25 per cent of the sales went back to the purchasers in prizes.

Submitted: 03/12/10

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