FOREIGN LOTTERIES.

NZ Truth, Issue 117, 14 September 1907, Page 7

FOREIGN LOTTERIES.

INSIDIOUS INVITATION TO

AUSTRALIANS.

Parisian Money Brokers' Try-on. Attempt to Seize Australian Money — " A Road to Fortune !"— And a Note of Warning.

From a valued correspondent who resides at Rochester, and who appropriately heads his letter "A Lottery Swindle," "Truth" has received particulars of a tremendous device which, according to other statements also, is beiner extensively tried on upon the people of Australia. Apart from the general question of the righteousness or otherwise of lotteries—a most dehateable question as it undoubtedly is— there is m this particular instance an evident element of cupidity as to verge upon, if it does not actually enter within the region of unadulterated swindling. Our correspondent's letter to us cost him 2d. these cute Anglo-Parisians who seek to snavel good ; Australian gold arc so careful of the bawbees as to carry their correspondence to England, and thence despatch it to Australia at a cost of Id, and anyone responding -to their bait would have to pay 2*d postage to Paris ! and how seducive is the bait ! The despatohers of this looting "literature" are some persons grandilo.ciuently styling' themselves "Cunlifte, Russell and C 0.." and their address is eiven as 10 and 12 Place de la Bourse. Paris." They describe themselves as "bankers and stock and share merchants." And the bait is all-eged investment m foreign bonds. "A Road 'to Fortune, or How an INDEPENDENCE FOR LIFE may . be "acquired" is the caption of one of the circulars. There is. of course, first-class security, practically no risk, and enormous possibilities of acquiring wealth." Such things there always are. It apparently never strikes "Cunlific, Russell and Co." to make the •grand '"coup" for themselves. Before describing m .some detail the scheme of ready opulence which these people utilise to bait their trap, let us quote a few of. "the alluring phrases from their "literature." They say "A possible profit of ,a thousand per cent, m less than n ' year, on an investment that cannot, at the worst be repaid with less than its cost, is well worth trying for ;" "frequently repeated chances of winning important prizes;" "full and immediate enjoyment of the prize drawings ;" "the chances of a handsome cash win." These are some of the allurements. Here are others : "Most people desire weafth. and the majority nrefer to obtain their riches quickly, honestly, and safely. The best way of achieving weal Mi. is to make money work for you. MONEY BREEDS MONEY. . No millionaire ever made. his fortune by the toil of his hands"— or to put the question m an Australian simile, "We cannot all be members of Parliament!" In fact. the scheme of "Cunlific. Russell and Co" approximates to that of their prototypes nearer home, who advertise, "You find the money ; we take the risk"— except that all of them here and elsewhere take jolly good care to take no risk at all. Year m and year out, the British, j American, and Australian nress have exposed the gross financial operations of European Continetitial Governments and Corporations. Our consideration of this matter, however, is apart from all aspects of the high finance. It is based upon the facts that Australian speculators m these securities, however excellent, the securities may be, have NO CONTROL OVER THEIR INVESTMENTS if they are made through "Cunliffe, Russell and Co." or any similar firms. What this particular firm ostensibly offers is investment m Government and Municipal bonds. We may take a few instances. The first mentioned is "Town of Paris 1898 2 per cent, bonds." These bonds cost £18, which will be accepted m twelve monthly instalments of £1 12s each. Upon these bonds prizes, drawn each quarter. are offered, amounting m the annual aggregate to £48,000. There are two prizes of 200,000 francs (£BOOO each), two of 1000,000 francs, four of 50.000. sixteen of 10,000, sixteen of 5000, and 160 of 100. Similarly there is tihe bait of the "Town of Paris 1892 2£ per cent, bonds,." with propor- j tionate prizes, each bond costing £16 'm cash, or £17 5s if paid m instalments. Then then; are "Suez Canal bonds," costing £25 each ; "Town of Brussels 1902 21 per cent, bontls," costing £5 each ; "Ottoman bonds," costing £8 each ; "Egyptian Foncier bonds" costing £12 10s each; Servian Sta;te bonds." costing £4 10s each ; "Panama 1888 bonds" (visions of de Lesseps !), costing £8 each; "Hungarian Foncier 1900 bonds," costing £16 ; and "Congo Free State bonds" (m whioh there are absolutely "no blanks !"), costing £5. In fact, m all these speculations there are, of course, no blanks. "Everyone must win a prize and get his imoney back '!" "Cunliffe, Russell and C 0.." moreover, are most obliging. They WILL TAKE YOUR MONEY by instalments, and they will give you opportunities of "investing'? m combinations of various bonds. A "Tattersall's" ticket is not m it with these foreign bonds ! "Send us your money ; we will do the rest." The most remarkable feature of the firm's stupendous and surprising offer is that, so far as their circulars disclose, they make no money out •of the investment of your money for you. "Cunliffe, Russell and C 0.," whose "literature" is neatly minted m English, offer no security and dive no references. Everyone knows that some of the European State and Corporation lotteries are legitimate forms of investment. Who. however, are "Cunliffe, Russell and Co" ? So Far as their circulars go, they may be men of straw, they may be common swindlers. And all they want is the Australian public to forward their money ; the rest is oo^v ! It is interesting, by the wov. to note that the firm specially recommends

"Ottoman ami Panama bonds," which arc notoriously THE RISKIEST INVESTMENTS m all Europe and America. Almost on a financial level with these are the "Hungarian bonds." the "Servian bonds," the "Italian Red Cross bonds," and others of that class, which are likewise recommended specially m either of the many "combinations" suggested by the firm. Let us again assert that several of the European bonds offered to investors are legitimte speculation. But they are essentially speculations, and m the British sense of the word they are not securities at all. That, however, is not our point fust now. Our main consideration is to issue a distinct note of warning to the Australian people to exercise extreme care and watchfulness ere they transmit their money to any firm;, however a high-sound-ing name it may trade under, to invest for them. In one of the "combinations," for example, the firm m question has the ' cool "hide" to invite a total investment of no less than £455 cash, or four annual navments of £122 10s. eight quarterly nayments of £61, or 42 monthly payments of £12 10s. And for this we are informed 7.6 bonds are to be purchased, and "the lowest amount at which these bonds could possibly be drawn is about £829, and the highest amount at which they could be drawn is about £1,383,050." Notice how particular they are about the odd "fifty." and also about the "about !" It is only necessary, m conclusion, to again WARN THE PUBLIC against embarking their savings or capital m any such enterprises, especially through such apparently questionable channels. Australian Government securities, affording not only absolute reliability and the opportunity for personal supervision, should be good enough for Australians, and m this connection it will be well if the various . Australian Governments were to adopt the European tlevice of making the denomination of their script as low as possible m order to provide legitimate investments for the savings of the people m small sums. These securities certainly do not possess the allurements of a lottery with its possibilities of large prizes, but they do afford absolute security. And, ■ finally, since Australia. Federally as by State laws, is legislating against lotteries 1 , it is desirable to attract the attention of the PostmasterGeneral to the distribution of these enticing circulars m Australia m order that "Cuniiffp, Russell and Co." may be placed upon the "index cxpurgatoris," and that the peonln. of Australia may be safeguarded from the operations of foreign money brokers. '