Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1878-12-13
HOPS



The Safeguarding institution known as
the ''bucket-shop, says the San Francisco
Bulletin" obtains its name in the follow
ing manner There are low, degrading
whisky shops in New York, where laboring
men buy small quantities Of bad liquors in
their dinner-buckets. Their business be-
ing done almost entirely in dinner-buckets,
they came to be called bucket Shops -
and as they were among the lowest and
most disreputable places in New York, the
name "bucket-shop" became a synonym for
dens Of thieves.
Certain stock gambling lens were estab-
lished in New York, which bore about the
same relation to regular stock brokerage,
that a "~hogging" faro game does to a
square game, or that the "bucket-shop :"
does to a place like Delmonico's.
These places were run by men without
conscience or character. They held out
inducements to the ignorant or unwary
that, upon the surface, looked very plausi-
BILE and attractive, and were patronized
largely by the lower classes. They we're
simply deadfalls to steal nearly every
dollar intrusted to them, and they soon
got a very bad name, until, to be con-
nccted with one, branded q man as q
thief, and to lie seen in one, was disrepu-
table.
The proprietors Of these places called
them public stock exchanges, but a discern
ing pnblic dubbed them bucket-shops,"
thus very properly chasing them with the
whisky deadfalls OF Water street. Their
advertised plan Of business il TO make con-
4ruxka ur.kI Af.<., ..u A. -. -. .~1l
stocks at the quotations OF the Stock FIX
change, as shown by the indicators, and to
close these contracts upon quotations re-
ceived, in the same manner, paving the
differences, no stock ever changing hands.
For instance, a customer wishes to buy 100
shares of stock quoted at SO per share !;
he is required to put up q margin deposit
of 81 per share, and pay commissions for
buying and selling. He receives a contract
worded rs follows, I'm consideration Of
500, John Jones may buy from us one
hundred (100) shares Of - stock at $40
per share, at any time before a sale at the
Stock Exchange, at or below 50 per
share"
Should he come in later and see the
stock quoted at Sill per share, he can pre-
sent his contract for settlement, draw
down his deposit of 500 and a profit Of
500. On the other hand should the stock
have declined to 50 per share, thereby I'M
covering his margin, by the rules OF the
place, his contract is closed without notice,
and he has lost the 800 deposited upon its
face. This seems to be q tolerably fair
game, if dealt on the square and backed
by financial ability to keep it's contracts
aud pay the differences. Their real scheme,
however, is about as follows: To get out
large lines Of contracts on stocks, then,
having a bright broker in their interest, to
make 10y quotations in the board by wash
sales. or by selling a few shares Of each
stock in which they are interested away
below the market, thus uncovering mar
gins and closing contracts, BY this means
one sale Of five shares Of stock at 81 below
the market might close contracts for thou
sands II dollars foolishly entrusted to
them as deposits on contracts.
This, in short, is the game-a clean
cut deal. 1t is very seldom that any
outsider is ever allowed to make a dollar.
They have their cappers and stool.
pigeons, who come mp to their counters,
present contracts and draw down large
profits, to deceive the surrounding crowd
and encourage poor dupes to entrust money
to them.