Lottery for Union Canal for $400,000 Authorized by Legislature, April 17, 1795

By the act of April 17, 1795, the president and managers of the Schuykill and Susquehanna Navigation, and the president and managers of the Delaware and Schuykill Canal Navigation, were authorized to raise by means of a lottery, a sum of $400,000 for the purpose of completing the works cited in their acts of incorporation, under a prohibition that neither of them should form the same into capital stock, upon which to declare a dividend of profits.

An Act Passed March 4, 1807, authorized the said companies to raise their respective sums separately, subject to the prohibition as to dividends.

The two companies were consolidated by act of April 2, 1811 into a corporation known as the Union Canal Company of Pennsylvania. The new company was authorized to raise money by loan to complete the canal and to use the proceeds of the lotteries already authorized, and by the twenty-eighth section of the act authority was given to raise the residue of the original sum equal to $340,000 by a lottery.

By the act of March 29, 1819 the proceeds of the above lottery were pledged as a fund for the payment of an annual interest of 6 per cent upon the stock of the company.

By these and subsequent acts it appears that the lottery grants were given in the first instance, to the two companies, and afterwards continued to the Union Canal Company to aid and encourage the construction and completion of a canal and lock navigation uniting the waters of the Susquehanna and Schuylkill.

In consequence of these lottery grants, individuals were induced to invest their funds in the furtherance of the work, and loans to the amount of $830,400 were made upon the credit of the capital stock and the profits of the lotteries.

The Union Canal Company entered into contracts for the conduct 275of these lotteries, the last one, October 6, 1824, for five years, which expired December 31, 1829.

There was much sentiment against these lotteries and as there were laws in force for suppressing and preventing lotteries, there was objection made when the extension of this lottery was brought to the General Assembly. The Committee on Ways and Means, February 9, 1828, reported that it was inexpedient to resume the lottery grants to the Union Canal Company at this time and further resolved, “that the committee be instructed to bring in a bill to regulate lottery brokers, and to restrain the sale of lottery tickets within this Commonwealth.”

For more than half a century after the founding of the Province, Pennsylvania was dominated by the Quakers, who were constantly opposed to all games of chance. At the very first meeting of the Assembly, at Chester, in 1682, an act was passed against cards, dice, lotteries, etc. This and similar acts were annulled by the English Government.

Although lotteries were not legally prohibited only one lottery appears to have been drawn during the next several decades. In 1720 a Mr. Reed by means of a lottery of 350 tickets, which were sold for twenty shillings each, disposed of a new brick house and several lots in Philadelphia.

In 1730 lotteries were prohibited under a penalty of £100, half of which was to go to the Governor, and half to the party bringing suit.

It seems probable that the Provincial Assembly authorized lotteries by special legislation for at least two lotteries had the official sanction of the Philadelphia Council; one in 1747, for the fortification of the City, the other a year later for street paving. From this time until the passage of the anti-lottery act of 1762, lotteries increased in number.

During this period lotteries were drawn for the college, academy and charitable school of Philadelphia, to complete the Episcopal Church, etc.

The act of 1762 proved to be effective in limiting the number and purposes for which lotteries might be established. Between 1762 and 1796, there were only twenty-three lotteries in Pennsylvania. Of these six were private, eight were for public use and nine for the erection of church buildings, in which twenty-one churches were concerned.

With the establishment of the Federal Government the financial condition of the country rapidly improved. With the gradual growth of population, and rapid development of business, came increased demands for new churches, schools, public buildings and improved transportation. To meet these public needs the regular revenue was insufficient and to avoid an abnormal increase in taxation, petitions were presented to the Legislature for the privilege of establishing public or semi-public lotteries.

The Legislature rejected all requests for lotteries, except when some important purpose was to be served. Only one lottery was authorized in 1790, for the erection of a Jewish synagogue; none then until 1795, 276when one was granted the Aaronsburg Town Lottery, in now Center County, and the other was to aid in opening the canal navigation between the Schuylkill and Susquehanna Rivers.

From 1796 to 1808 inclusive seventy-eight different lotteries were authorized.

The lottery of 1782 for the improvement of roads west of Philadelphia was managed as a state lottery. Others were county, city, borough and township schemes. Some were for erection of bridges, ferries and even improving creeks. One was for a garden and public bath in Philadelphia, one for the pay of soldiers in the French and Indian War; hospitals were also included, as were schools.

Many churches were built by means of lotteries and the newspapers of that period carried many advertisements, both from those authorized by the Pennsylvania Legislature and those of other States. It is estimated that at least fifty lotteries chartered by other States had agencies in Pennsylvania.

From 1747 to 1883 there were 176 separate lotteries. One single lottery, Union Canal lottery, awarded in prizes more than $33,000,000 between 1811 and December 31, 1833.

The State became flooded with local and foreign lottery tickets, and many memorials were presented to the Legislature against all form of lotteries, but they continued to thrive until December 31, 1833, when they were abolished by law, Pennsylvania taking the lead of all States in banishing lotteries.

Governor George Wolf said in a message to the General Assembly: “A more pernicious, ruinous and demoralizing evil can scarcely be imagined.”