The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-06-05
A ROAD TO RUIN.

EyADED-A NEST FOR THE Production OF
DErAULTERs AND EMBEzzLERs-
Keen observers in Wall street and vicinity have Won
dcred why so many men aud boys rushing In aud
out or the great Railways leading from Exchange place
and William street. The bulk OF those youths arc
known bankers clerks. not few OF them arc In
tho employment OF gram and produce merchants OF
South and Water Streets all seem to strkcsomc-
times by devious passages-No 25 William street, and
arc lost In tho intricate courts that wind about the
great buildings tho thorough!ares named. AHIRALp
reporter yesterday young clerk dash wildly into
the mazcs from Exchange place; he did not seem to
be delivering stocks; there checks or scrip
vouchers In his hands and his was such as TO
cad the writer to suppose that some absorbing bus
ness OF personal character on his mind. Upon
being followed by the newsgaherer u conversation as
below narrated, ensucd:-
REroErER-whcrc are you going in such hurry?
CLEKK--To sell some Illinois Central short
RKroRrER-You arc specializing; are you?
CLnRk-Ycs why note Everybody takes "nycrn
these hard times.
REroRTEs-Do ~. & Co. This employers know that
you arc IN the market?
CLERK (ncrvousiy)-No, no. NUNS the word
REroRrER--But II you have money with which to
speculate why don't give your orders to ~ 4. Co.
who members OF tho Stock ExchangcS
CLEaK--Blow NJ l. Co.. Do you think they would
trade for me without margin?
REpoR-ER-No, but who does business without somc
guarantee against lossP
Here the bright youngster, by singular movement
with the index finger OF his right hand, pulled down
the lower eyelid OF his left eye and with refreshing
smile demanded or the reporter I'll lie anything
grecn?" Nothing Of verdant color was perceptible
the bright clear orb of the YOUTH and he was so in
formed He then continued
sCome with me, young telow"-the reporter was at
least quarter of century older than his guide-'and
III show you how the boys speculate" Following his
guide tho reporter was led TO large and spacious
Office overlooking the court and the door large
gilt sign was displayed
- l. COMPANY,
Jobbers Stocks and Grain.
Before entering however, the house so novel in its
arrangements and unique in Its management the clerk
handed the reporter a circular of the firm, which
seemed to explain the manner IN which boys or men
could gamble in stocks and grain, and probably
be solution OF why SO many boys arc tempted by
chances of rapid fortune to become fahcss 10 their
trusts. ~ Is as follows;-
THE SPIDERS WEB
Our method Of doing business tho new Stock Grain
Exchange Is as follows AS we make no charge for COM
eighth the market prices selling the one
o se sy s an ys IPe
lowest margin which operator trade on Is rs ol
bush. Of grain, being optional however, with the
his large IS he may
margins deposited stock will not apply grain, and
The operator has the privilege Of closing his occaunt at
S ;: Gs H. *.
Margins be deposited with ut reliable bank
Parties carving stocks when dividends De ea.ea and
and MS selling stocks short they viii be charged
cent per annun Interest after deductng margin pur-
h Bon
change receipt Of official aas.atons and
telegraph dnit permitnxl win be promptly executed at
viii Be- executed It the limit pscs when this IS
curing market, but at other times as near It as
possible. -.
IN THE NEW BETTING ROOM.
The reporter, alter gancng at this curious circular,
the anomalous terms Of which quickly apparent,
entered the large and spacious Offices OF tho rm
mako no charge for commissions aud yet contrve TO
take $25 from each person who buys and sells 100
shares OF stock. II large, airy apartment, with
painted walls elegantly apportoned walnut partitions,
behind which clerks and cashiers were seated clean
blackboards the walls, on which were prominently
displayed tho initials REPRESENTING tho active stocks
dealt in ut the New York Exchanges on another por-
ton is Chicago time and the prices Of wheat aud corn
IN tho Chicago market In corner stock indi-
Gator placed, marking the fluctuations in shares,
and about the room, sittlng standing and lounging,
crowd OF men and boys, who constituted
the patrons OF this Arm and the members Of
this pool room. Among the number were bank
and messengers young clerks Of stock brokers
and large number Of broken down spectators, who,
like moths, still futter about the flame that has
scorched them The reporter addressed himself TO
member Of the nrm receiving from HIM the following
explanation to their manner Of doing busin ess.-
WHERE IT CAME FROM.
.sThe head OF the concern Is Western man. He
made his money transporting supplies and cattle across
The plan OF operations which We have put IN practice
here. although new to New YORK, IS wei,
combined gram chances with our stock business.
but we found it was not understood; the boys TOOK
conhno ourselves simply TO stock spcculatons. or
course Will explain 10 you how we operate. We
have put SO much money in the business, in other
words TO take chances against the operations OF
customers. You como ia and find the price Of
Lake Shore IL out the stock indicator Is
To- 90 30 or 100 shares all you have to do deposit
with us 81 dollar share and II u goes your way, say
to 81 and you wish to close you
do so and pay you the difference beside tho
"That is ali right; but If 1t goes DOWN."
tsThen when your margin Is exhausted we close the
transaction"
"Apd pocket the amount put up?"
.Prccscly. just as otLor stock brokers do !"
HEAVY COMMISSIONS.
'But you claim 10 charge no commission. How do
you reconcile this with the idea OF selling 10 your Gus
toners .cighth above the Market and when you
close out Short account charge them onecighth
the ns sH1 or
buying and selling is only $l2 So" The proprietor
here smiled ana said
lots for men and boys with but little capital"
During this conversation crowd OF men and
boys were coming in and going out
and the steady click OF the indicator
was drowned by tho hum Of voices, the young men
VINO were taking notc oil the variations. called out
s.Lake Shore 49,; Rock Island, 00A; Central ~
and 80 on, whlo busy boys chakod the figures tho
blackboard, that all In the room might see them.
Mon were going up 10 the cashiers windows, giving
their orders receiving their money, exactly as in
the pool rooms lately abolished by the Legislature
And yet the laws against gambling are IN force IN tho
city New York, and here - an unbounded evil that
may lead TO rum hundreds Of clever clerks and men
in positions Of trust, II not oil honor and profit