River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1883-05-10
GAMBLING OF THE DAY.


Which Makes all Its Deyotees Its
Victims at the Last.
Gath's New York Letter.
| was talking last night to construe-
tor and superintendent Of telegraphs in
an important part Of the country. had
ventured to remark that while the
American people had the name of being
natural gamblers and spectators, |
thought that there were less spectators
here proportioned to our population
than in any country.
mo" said my Geographic friend,
gambling is very general, especially in
the western and southern states. Gamb-
| ling in grain options and kindred things
in Chicago cleans out nearly every town
within very large radius of that city Of
its surplus capital. For instance, there
Is the little city of Ottawa, Illinois.
Some time ago there was s250,000 taken
| out of that town by the Chicago grain
| sharpers. After that was over nobody
| could do speculative business in OF
tawa. But as soon as they get surplus
again gambling rooms will be opened in
that town, and the same old lesson will
be repeated. In short, the Americans
are such an intelligent people, and use
/ the telegraph, the newspapers and SINH
lar facilities so thoroughly that they are
1 bound to speculate as soon as they get
some money ahead. When they lose the
surplus they sit down awhile and engage
| in regular labor, and take the lesson to
| heart; but, being of sanguine tempera-
ment, they start in again whenthe times
| look rosy. Thus / am afraid it is going
to be for the long future"
| How do you get informed on matters
/ like that?"
why, the agents of the Chicago bro
| kers, or their principals, are approached
by me to extend my .egraphic bust
ness. | will say to such man on the
Stock Board, Why don't you go to OF
| town and open room and put up
blackboard and let me put in a wire for
| you, and | will give you the quotations
as fast as there are sales in Chicago?
| No Ottawa for me- the broker will say
| we have beaten that town all up and
cleaned it out. In three or four years it
may do to beat up again, but not now"
| Said my friend: There was a town
| called Louisiana. Two or three Chicago
agents went down there and opened
rooms to speculate with the telegraph
blackboard, &C., and they took ont of
the town not only all the citizens had TO
loose, but the men in the bank got away
with $4,000 of deposits. 1t made such
an excitement that the city council re-
solved that no more exchanges, so-called,
should be licensed; and the citizens, be-
sides, organized Vigilance committee
to shoot any man from Chicago who
should come down there and open an
Office. Several fellows went down and
scanned the place, and found it advan-
tageous to leave. Yet Louisiana will
mako money normally again, and again
be bled by Chicago"
What do you think about this deal
ing in short ribs, grain, corn, lard, &C.,
on the option plan"
why" answered my friend, in a
burst of confidence, there isn't a man
in the United States smart enough to
deal with these brokers in Chicago.
Everybody tries it, but they all end the
same way. There are, perhaps 1000
members of the Produce Exchange in
Chicago seats are now quoted at about
1000 apiece. About 400 of the men in
that board are what are called scalpers.
merely operating for themselves. The
regular brokers, those who are looking
out for customers, scour this whole coun-
try up and down.. and put their black
OOdl1S anu NkIGo Into Every NtltdR6
which isthrifty and with capital. Their
game is to get all you have got, and you
may as well make up your mind that
they are going 10 have it if you COM
mence dealing with them.p
Then they 90 not get their principal
business right in Chicaoo?"
Lord bless YOU, no. New York City
sends to Chicago probably three fourths
of the business done on that Exchange
now in speculative way. The Chicago
produce broker mas Il factor in New
York. The shave, or commission, is
one quarter of a cent per bushel on
grain, or $50 on every 900 bushels. An
ordinary deal is 10000 bushels, or $3.50.
The man in the Chicago board takes one
half of that commission, and gives the
New York chap the other halt for send
ing him the customer. 1t would be hard
to tell how many of these halfcommis-
sion agents are pitched all over the
country. They are generally Chicago
men, as smart, or little smarter, than
the brokers on the spot. They strip the
speculative men of New York of nearly
all their money and that is one reason
why the New York Stock Exchange does
not recuperate. Ever since Jim Keene
introduced in New York the system of
dealing in options and futures in Chica-
go, the New York Stock Exchange has
| been depleted of that speculative work
of which it once had the monopoly"
Here New York gentleman, who has
| been q dealer in everything for years
and has made his $500,000, remarked:
81 have been an occasional Spectator
| during the period OF about eighteen
years. Being also merchant, l have
| kept my books IN such way as to show
the net result of my speculation, as |
would of any other part of my business.
| The average speculatur does not keep
his accounts as close as that. At times /
have made thousands of dollars, and |
| would have supposed, but for my books,
| that in the long run [ was clear. But
recently, being about to close my bust
ness up and take long holiday, | had
my speculative account balanced When
| I took out the commission paid to the
| brokers found that | was really short
In other words, the profits on my specn-
| lations have been more than absorbed
| by the brokers' commissions. Toward
the end / made large operation in
piece of property, which | myself made,
| and there / was ahead about $50, 600.
That represents eighteen years of stock
speculation, or less than 81 900 year
| profit | have been favored specua-
| tor, too, because | hardly ever touched
| ANYTHING that did not help to make.
| How mucn worse DO you suppose those
persons have Jared who speculated with
out being on the inside, and had to pay
the same commissions that did,"
| asked this gentleman ifhe ever dealt
in grain and produce options.
| Never but once" said he. "I got "a
point, as they call it, one time from u
Chicago man, to put up 81 900. He told
me that | was ahead, in few days, and
I went off somewhere and let the ac-
| count run. When | came back he said
he wanted more margin, so | gave him
another 81 900. After a second absence
| returned and said [ thought | would
| like to close that account. lie present.
ed me with bill for 81 1856 so losses
smiled, but let Chicago alone after that" 4
Here the Chicago man spoke up, say
ing: Are you aware, Gath, that the
| stock BROKERS down town have to find Q
new set of customers every eighteen
months? It is true. So disastrous is
| stock speculation on the customer, With
his losses and his commissions included,
that he is stripped aud turned bare every
| eighteen months, and new man has TO
be found to take his place"
"Now tell me whether the brokers
| themselves are not also cut up good
| deal?"
To this the New York man replied.
| saving; There Is a certain proportion
| of brokers who are ike common sense
| bar-keepers that never take a drink,
/ ol4nou,6 fbaxr hand tlsa hoftla n fhouS-