New York Herald/1869/4 - 11 - 44

4 - 11 - 44.

New York Lottery Policy Game. Maelstrom of Gambling. How The Poor Are Robbed and Where Their Money Goes To. The Secrets of the Snare. The Policy Dealers in Court.

Notwithstanding that the laws of the State prohibit lotteries, and gambling is generally regarded as a secret practice, there are few cities where more lottery operations are carried on than in New York. It is unnecessary to refer to the various swindling schemes which, by means of extraordinary advertisements, rob the uninitiated, as the police reports have made the public of this city perfectly familiar with the character and extent of those frauds. It is also well known that the ordinary methods of gambling are carried on to an alarming degree among all classes, not accepting the fashionables whose laces and satins are seen every Sunday in aristocratic uptown churches; but few are aware of the gigantic proportions of lottery operations in New York. The public sometimes hears of Havana lotteries, and has an impression that these have secret agents in New York, who, to dispose of tickets, must observe nearly the same precautions as the operators in ordinary swindling concerns, and there is also a vague idea respecting the existence of lotteries in Kentucky, Missouri and other Southwestern States. which it is supposed manage to sell a few tickets in this city. So far from there being any secrecy in the matter, or any restraints upon the lottery business in New York, the offices for the transaction of this nefarious business are as numerous and as public as pawnshops. They are not seen on Broadway nor among the palatial edifices of the fashionable quarters, and for this reason are overlooked by the better portion of the community; but in the Bowery, the crowded thoroughfares tributary to Wall street, the neighborhoods of Jersey City ferry, Five Points, the markets, and in those districts densely populated by the poor, lottery policy offices flaunt their signs boldly, and unceasingly draw in the earplugs of the masses. Twice a day the tide of duped humanity ebbs and flows in these eddies, which rarely yields up anything from the vast amount of money sucked in. In each of these offices there is a drawing at noon and at night, and while now and then some person draw's a paltry prize, the risks of thousands are steadily flowing into the coffers of the central managers, which, like a maelstrom, day after day, and month after month, swallows the earnings of clerks, of laborers, of shop girls and the pittances of the beggar. These offices are not independent establishments, but are agencies of elaborate systems having their principal machinery outside of New York, and known as the Kentucky, Missouri and the Mississippi State lotteries. New York Headquarters. These lotteries have central agencies in this city, from which the small offices radiate not only through New York, but in all the adjacent cities. At No. 194 Bowery, the firm of Murray & Co., which, it is said, includes Mr. Benjamin Wood, represents the Kentucky and Missouri lotteries; and at No. 272 Bowery, the firm of McIntyre & Co., represents the Mississippi lottery. Each of these establishments has from forty to fifty offices scattered through the city, at which tickets are sold in all the respective lotteries. The central offices are in the upper rooms of the buildings. About forty clerks are employed in each of them, but a partition screens them from the observation of the visitor, who only sees a counter with one or two clerks and the usual paraphernalia of the ordinary lottery office. Every precaution is taken to prevent the detection of the managers. The clerks receive their salaries in envelopes addressed to them, and any attempt at investigation results something like the following:

• Q. What position do you occupy here? A. I am a clerk.
• Q. What are your duties? A. Posting the books and keeping the accounts with agents.
• Q. Who employs you? A. I don't know.
• Q. a you? A. I don't know.
• Q. How do you get your pay? A. I find it on my desk in an envelope.
• Q. Who puts it there? A. I don't know.
• Q. Who has charge over you? A. A clerk.
• Q. How is he paid? A. Just as we are.
• Q. Who do you suppose are the principals in the concern? A. I don't suppose anything about it. I come here every morning, do my work, and get my pay twice a week on my desk; that's enough for me to know about it.
  

These central offices employ agents to open offices in other parts of the city, the agents receiving twelve and a half per cent commission on all sales of tickets made by them. Any person who chooses to become an agent may do so by calling on the company, provided that his office would not interfere materially with the business of any office of the same company already established. This gives rise to the question now being tested before United States Commissioner Shields, whether these agents are simply clerks of the central company or are independent business men, like those engaged in any occupation whose profits are derived from commissions. As before stated, there are two drawings each day - one at noon which is called "Extra," and another about six o'clock. An hour before the result of the drawing is announced, all the agencies send their accounts, or "books," of the tickets sold to the central office, and no more chances in that drawing can be taken. As soon as all the "books" have been examined at the central office, printed slips of the drawn numbers are sent to all the agencies, which immediately pay out whatever may have been won by ticket holders. The Policy Offices are generally in the rear of offices whose windows bear the word "Exchange," in large gilt letters. Green screens give an appearance of privacy to the place, and on entering the visitor finds a man behind a small counter apparently having no other business than that of a sort of money lender. A few feet from the entrance is a partition with two doors in it, one before and the other behind the counter. Back of this partition is the policy den. This apartment is generally of good size, has 3 counter extending its whole length. On the walls are large states, bearing the numbers of the previous drawings and printed circulars relating to the respective lotteries. In one corner of the room a record of all the drawings of the year is sometimes kept for reference by the crowd for lucky numbers; and just behind the clerk are displayed printed tickets in the large prize drawings. All the policy shops are disgustingly filthy, and are generally infested with every description of vermin. The offices in the poorer districts are worse than can be imagined. A feeble lamp throws a sickly light upon a trade counter composed of old planks nailed together, behind which a person as repulsive as uncleanliness and vile associations can make him takes in the pittances of negroes, ragged Arabs of the street, half-naked beggar girls, and every class of depraved humanity. The walls are reeking with dirt and dampness; blotched and tattered remnants of old lottery circulars are pasted about, and the atmosphere is poisonous with foul odors. A ponderous negress shoves away a half-starved child that has come to risk a penny in the lottery, and after discussing the merits of the various numbers with the policy seller, stakes her ten or teen cents, and makes way for others as hideous in their depravity as herself. These dens, however, are too small for an exhibition of the most striking features of the lottery business. In the more decent offices a large crowd can be admitted, and here one may see at a glance representatives from every grade of society. Well-dressed clerks, hardy mechanics, seamstresses, gray headed men, old women, drunken hags and girls and boys whose stature indicates ten or twelve years, but whose features look old and hardened, all jostle each other at the counter and take their turns with the ticket seller. There is no confusion whatever. If any one speaks it is in a subdued manner, as if the place was watched by the police, and nearly all stand silently and with a sort of dogged look as if the man behind the counter was depriving them or their fortunes, which, by hook or crook, they meant to have. The busiest days are Saturday and Monday, immediately after the poorer classes have received their week's wages. At such times the policy offices are generally crowded and large sums of money are taken in. The Prizes. The consist of specified sums of money, for which elaborately printed tickets are sold, and of sums governed by the amount of money risked and the manner in which it is staked on the appearance of certain numbers in the printed slips of the drawing. The first alluded to are not invested in much, the masses preferring to make up their own combinations to buying a single ticket already prepared. drawings consist of thirteen numbers out of seventy-five, and of eleven, twelve, thirteen or fourteen numbers, as the case may be, out of seventy-eight numbers. The thirteen out of seventy-eight is the most common. The drawings are conducted, it is said, at the lottery headquarters West, and the result telegraphed to New York. Seventy-eight consecutive numbers are printed each on a small slip of paper, which is rolled up and put in a little tin tube, and all are then placed together in a revolving cylinder. Thirteen of these tubes are taken from the cylinder, which is made to revolve between each drawing, and the numbers thus drawn are placed in line in the order of their first appearance. The policy buyer really bets that a certain number will come arst, or that certain three numbers will be drawn; or he may combine the drawings one lottery with those of another. and take his chances of the numbers selected by him appearing on certafu ships. Each style of betting has a term peculiar to itself. A "stmober" consists of a bet that a certain number will come lu out at the head of the list, and in a 13-78 drawing one dollar would win sixty dollars on this if successful. Betting on three numbers appearing at a single drawing is called a "gig," and in this one dollar wins $200. Taking the chances on two numbers is called a "saddle," in which one dollar wins thirty-two dollars; but the most common method of using this combination is to saddle the gig, that is, bet an extra dollar on two of the three gig numbers coming out. If the two numbers appear the policy player wins $32, but if all three come out he gets $96 for his saddle and $200 for the gig. Betting on the first two of any three consecutive numbers in the drawing is called a "capital saddle," and if successful wins $500 for $1. Betting on four numbers being drawn is called a "horse" and gives $660 for $1. All these different modes of betting are combined together by the experienced policy buyer. and a few are now introducing a new feature, called "cross gigs," which admits of combinations of figures on different slips. Each person who takes a chance in these drawings may invest any amount from one cent to hundreds of dollars, the proportion of winnings to the sum invested being always the same. There is a distinction made, however, in the different kinds of drawings, as, for instance, a one dollar gig wins $150 in the 14-78 drawing, $175 in the 13-75 drawing, $200 in the 13-78 drawing and $225 in the 12-78 drawing. Most of the regular policy buyers have a superstitious regard for dreams, signs and lucky numbers. Some will select the numbers indicating the classes of previous drawings, while to accommodate the crowd most of the policy shops have a small box containing numbered bits of wood or leather. The buyer thrusts his band into this box after it has been well shaken, and drawing out a number takes it for his stake in the lottery. The most curious illustration of tins superstition in this particular is afforded in The Egyptian Dreamer, a book giving numbers for every dream. Copies of this work are found in nearly every policy dealer's office, and the dealer himself is generally so well posted in it that he interprets dreams for those who cannot read or are in a hurry. The contents of the book are indexed as follows: "The True Interpretation of Dreams;" "Dreams with Fortunate Numbers;" "Dreams for the Months"; "Table of Lucky Numbers;" "Dreams by a Celebrated Professor;" "Signs of a Speedy Marriage," &c. Several thousand dream signs, with corresponding numbers, are given, a good idea of which way be derived from the 1ollowing extracts: To dream of making sausages predicts quarrels; to eat them, love to the young and health to old people. 4, 32, 40. To dream of being among the tombs denotes a speedy marriage, great success in business and the gaining of a law suit; also the birth of children and unexpected news. 7, 8, 31. Onions. 10 dream of eating or selling them foretells the discovery of secrets and domestic quarrels. 2, 9. Entrails. To see them is a good sign, if they belong to another person, but if to yourself it is bad. 14, 19. It a ring accidentally falls off a man's finger, that is under no obligation of marriage, and runs directly to the feet of a maid or widow, it denotes not only that he is in love with the party, but that a sudden marriage will ensue. 27, 29. The singing of a robin redbreast at your window in the time of courtship, on a Wednesday, is a sign you shall have the party desired. 67. If walking abroad with your sweetheart you perceive a pair of pigeons circle you round it is a sign of marriage and happiness to ensue, with much content. 78. Ila hare cross you on a Saturday morning It promises happy days, riches and pleasure. 12. 4-11-44. The mystic numbers 4, 11, 44, which have for years been synonymous with lottery policies, are called the "nigger washerwoman's gig," and have become so impressed on the minds of policy buyers that this combination is used more than any other. The result is that when these numbers are drawn, as sometimes happens, there is a tremendous run on the lottery funds, and not a few dealers get "busted." The winning numbers are called "hits," and to the uninitiated the conversation around the policy offices respecting "gigs," "cross gigs," "saddles", "horses," "huts," &c., is rather mystifying. The term "pigeon" is applied to persons suspected of being sent from the central offices after the list of drawings has reached there from the West, to buy tickets of rival establishments dealing in the same lotteries. For instance, the thirteen numbers drawn to-day in the Mississippi lottery at Columbus are telegraphed in cipher to New York, and a copy is sent direct to the central office up town, while the slips are being printed for distribution among the various agencies. It is alleged that the managers of the central office occasionally send out a "pigeon," with instructions to go to rival concerns and take "gigs" for large amounts on certain numbers, which the managers have received as the winners. The result of such a step must of course be a heavy loss and perhaps the ruin of the parties thus taken advantage of. It should be stated that the concerns thus liable to being overreached are those called "middle men," and who have branch offices, but conduct the business on their own capital and personal responsibility. In other words, taking bets on the drawings made by the regular lottery establishments, these "middle men" must wait for the list of drawings the same as the agencies of the great central offices, and, it is claimed, are almost entirely at the mercy of the regular lottery managers. As they sell very few tickets in the great prizes, but continue their operations mostly to the rigs," "saddles," &c., of each day's drawing, the central offices lose receipts which would otherwise flow into their own agencies Practically the whole lottery system of New York consists of certain managers who have outside agents to take bets on certain numbers being drawn out of a cylinder, and in addition to the immense percentage in favor of the taker of such bets there is an opportunity for trickery "equaled by few and surpassed by none." Whether dishonesty is practiced in the management of the concern or not remains to be established. The managers may all he perfectly honorable gentlemen. The heaviest investments in lottery policies are by well-dressed Americans, who take five, ten and frequently as high as fifty dollars' worth of chances at a time. Next to these are the Irish of all classes, from the child that risks a penny to the clerk and mechanic who spend from five to ten dollars per week in the game. The negroes patronize the policy shops en masse, but the aggregate of their squanderings in this manner is below that of either the Irish or Americans. The Germans spend least of all in policies, and are principally represented by the worthless class of their nationality. The negroes will pawn the clothes they have on to buy policies, and most of the thefts committed by them are for the purpose of raising funds to invest in lottery tickets. 73 When it is remembered that the four great loiters firms in New York-Murray & Co., McIntire & Co., Simmons & Co. and Sturges & Co., have over 600 offices in this city alone, that they employ nearly 200 clerks in their central offices and that the books of Murray & Co. for August and September, the dullest months of the year for lotteries, show receipts amounting to $375,000, some idea may be formed of the influence of this pernicious institution upon the community. In the more decent policy offices thousands of clerks are squandering their salaries with the delusive fancy that they may eventually make a "hit" and fill their pockets. Hard-working seamstresses and servant girls each week put by a portion of their earnings for the same purpose, with the hope of getting the means relief from pressing want, and the laboring man, whose family needs every cent of his wages, is drawn into the same whirlpool, from which it is almost impossible to withdraw. Those who have been engaged in the business as policy dealers and have abandoned it state that out of every hundred persons who invest in the lotteries not ignore than two make a "hit," and these are generally for small amounts. ranging from ten to twenty dollars. In fact, so great is the percentage in favor of the policy dealers that the central offices. which pay a commission of twelve and a half per cent to agents, allow a discount of fifteen per cent on all money paid in to them by purchasers of tickets. In other words, a "gig", which costs one dollar at a branch office, can be bought at the central office for eighty-five cents. As the most trifling sums are received, and one cent risked on the chance of one of the seventy- eight numbers coming first on the list of thirteen numbers drawn may win sixty cants, the temptation to the extremely poor and the encouragement to gambling among children is almost beyond restraint. Thus twice a day. throughout the year these allurements are spread out among the population. Their baneful effects in sapping the disposition to steady, legitimate business; in bringing the rising generation (one-half the policy buyers are youths) in contact with the vilest characters who congregate about the policy dens; in the squandering of scanty means necessary to the support of deserving families, and in the increase of vice which the occasional prize produces among the companions of the lucky individual, who invariably spends his winnings as soon as received, are among the most serious evils of New The lottery policy business 19 a greater curse to this city than all its drinking places together, and the reformers and Christian missions whose good works shine so conspicuously in the midst of moral desolation cannot do better service to humanity and morality than by striking directly at these concerns. Their present magnitude has been attained so rapidly that it is probable very few out- side of the police force know much about 15. The lottery business in this city has gained nearly all of its present influence over the community within the fast two years, and it is steadily on the increase. York. The Lottery Dealers in Court. The recent energetic and successful raid made upon the policy dealers has induced many of them to present matters in their proper light. The entire mystery surrounding those lottery shops has, through the prompt and decisive action of Assistant District Attorney Jackson and Commissioner Shields, before whom the defendants have been taken for examination, been exposed. The law in reference to the matter has been thoroughly expounded, and though there may be a certain hardship attendant on the prosecution of the defendants charged-since they are not morally responsible - yet the law must be enforced, the result being that all the connivances 'of those who have hitherto managed the lotteries will eventually be thoroughly disclosed. Assistant District Attorney Jackson delivered yesterday a pretty clear exposition of the law bearing on the case of the lottery dealers who have been arrested for the non-payment of the special tax. The law upon this subject, though not exactly pacific in the characters which it intends to embrace, at least so far as concerns the present case, sets forth in paragraph 6 of section 79 of the revenue laws the following: Lottery ticket dealers shall pay $100. Every person, association, firm, or corporation who shall make, sell or offer to sell lottery tickets or fractional parts thereof, or any token, certificate or device representing or intending to represent a lottery ticket or any fractional part thereof, or any policy of numbers in any lottery, or shall manage any lottery, or prepare schemes of lotteries, or superintend the drawing of any lottery, shall be deemed a lottery ticket dealer; provided that the managers of any lottery shall give bond in the sum of 1,000 that the person paying such tax shall not sell any tickets or supplementary ticket of such lottery which has not been duly stamped according to law, and that he will pay the tax imposed by law upon the gross receipts of his sales. Sections 111, 112 and 113 provide for a tax of five per cent on the gross receipts of all lotteries; that returns, verified by oath or affirmation, should be made monthly and in duplicate to the Assistant Assessor; and impose a penalty of $1,000 for failure to make such returns, and $1,000 for nonpayment of the tax. The law excepts the managers of certain fairs whose proceeds are intended for charitable purposes, and also provides that nothing in the re- venue laws shall be construed into legalizing lotteries. Lottery tickets must be stamped with name of vendor and date of sale under a penalty of fifty dollars. Sales without license are subject to a penalty of $500 in addition to all other penalties; and purchasers of tickets from unlicensed lottery ticket vendors may recover twice the amount paid at any time within three years, with costs. Lottery dealers neglecting to pay the special tax shall pay a fine of $1,000, and each manager of a lottery is required to Keep just and true books of account, which shall be subject to the inspection of the assessor. As a test case, the complaint against Hanlin E. Sill, charged with carrying on the business of a lottery dealer without paying the special tax required by law, was yesterday afternoon brought before Commissioner Shields, there being several other defend- ants in attendance to await the issue of the proceedings. Assistant District Attorney Jackson appeared for the prosecution and Mr. Spencer for the defend- ant. E. W. Hulse testified - I have been engaged in this city in the lottery business as a middleman; during the years that have elapsed I have been constantly in business since the special tax was inflicted by Congress, June 30, 1864; there are six lotteries in existence in this business - namely, the Paducah, Georgia, Kentucky, Missouri, Mississippi and Shelby lotteries; the drawings are twice a day telegraphed here; among those engaged are the managers, middlemen and shop men; when the tickets are sold the returns are made to 86 Nassau street and 67 Liberty street; the policy business is done in this wise:-There are thirteen drawn numbers on an average; there are seventy-eight numbers put in; when there are three on a sup we call it a gig, two numbers we call it a saddle, one number a station; oftentimes these are sold out and they go on in other people's names, though they might still retain the Save license; when a new lottery I had to pay a license of $40; the managers of the lottery at No. 191 Bowery in connection with the Missouri and Kentucky are Benjamin Wood, Frank King, William Franz, Jacob Baulch, H. Colton; the receipts are signed by Benjamin Wood; they go under the name of Murray & Co.; Jacob Baulch gives the bonds for the managers; there is also connected with it C. H. Minis; I do not know whether Mr. Butts is with the managers; the rule concerning the special tax is that I have paid the special tax with which they have charged me; the managers charged all that. Assistant District Attorney Jackson--Winch managers? Witness - C. H. Murray & Co. Examination construed. With regard to the rule concerning the five per cent, that has always been deducted monthly by the managers; they obtain the license tax and five per cent; there is another lottery firm in the city called McIntyre & McBrian; he did not know any other; the party who runs the shop has only twelve and a half per cent on the sales: there are about 400 policy shops in this city; from my own personal observation the gross receipts for each year, since the law of 1864, average $15,000 a day; the person who takes care of the shop gets twelve and a half per cent upon the sales; I called the upon managers in order that necessary bond might be led; asked them if they would go bonas for my business for $1,000; they refused, saving that they would not hold themselves responsible for me; in reference to the charge of five per cent it was deducted by the managers from my account at the end of every month; the managers get the five per cent in their own hands and the organization is a monopoly; the collection district is at No. 296 Bowery. the Cross-examined by Assistant District Attorney Jackson applied for the bonds on several occasion; I went there once in person and sent subsequently many times to ascertain whether the firm of Murray & Co. would file the necessary bond; they gave me license for one once; they would not allowing to take out a license in my own name; I went to the office of the collector; I was shown a bond purporting to be for my office; subsequently I paid forty dollars for another license, which he said was an enormous assessment, and added that the money would be returned; the lottery for which I paid the forty dollars ran only two or three weeks before it was consolidated or sold out; that was the Paducah lottery; my place of business is not at 3514 Washington street, but that is one of the branches. After a further examination of the witness Mr. Spencer addressed the Court at some length, con- tending that the defendant was not by any means responsible 1or the charges which had been preferred against the lottery dealers. Sill, as well as the others, were mere shopkeepers, receiving twelve and a half per cent for their services. He submitted that this was a business being carried on in this city made a felony by ex- press act of the Legislature -a business punishable by incarceration in the State Prison. He dilated upon the fact that a few monopolists controlled the lottery business in this city, pocketed the attorney that belonged to the government and debarred others from entering into the business. He asserted that the lottery managers had defrauded the government of no less than $1,000,000. Mr. Spencer concluded by paying a huge compliment to the Commissioner and other members of the United States Court, which, he contended, was invulnerable to political power and the temptations of wealth. He moved for an adjournment in order that the books of the Collector might be produced to show whether the defendants had paid the special tax and other payments connected with the lottery business. Assistant District Attorney Jackson briefly replied, observing that the laws, however good, bad or obscure, must be enforced. It they were bad they could be corrected. It had been contended that the defendants and those depending upon the issue of this investigation had proposed to pay all that was required of them, and that they did so. But the law set forth that no receipt could be given without the bond [that] had been regularly filed. If the defendants felt aggrieved at the treatment extended to them by the managers, they had their remedy in a civil action. As it was the law was clear and distinct, and the defendants, connected as they were in some way with the lottery business, for which they had not paid the special tax required by law, were responsible. Commissioner Shields - The only question before me at present is whether the defendant Sill paid the special tax. Mr. Spencer said it was necessary to produce the books of the Collector to show what had been paid, and also to prove that the defendants had complied with the requirements of the law so far as lay in their power. Assistant District Attorney Jackson offering no objection to the suggestion of the defendants' counsel. Commissioner Shields adjourned the case till this afternoon.