The Indianapolis journal., 1884-09-08
FIGHTING THE BUCKET SHOPS.
Because They Interfere with Legitimate
Speculation The Stock Exchange win
Suuuress Them.

because They AnfeEere with Legitimate
specu1ation-The Stock Exchange vim
Suppress Them.
New York Commercial Advertiser
The "bucket-shop1 question is one which has
for a long time perplexed and troubled Wall
street. In spite of the efforts which from time
to time have been matie to fight them, these in.
stitution stl live and thrive, and besides their
bad influence in tempting clerks and men Of
small means to speculate, they have diverted
from legitimate channels a good deal of the
Wall street custom
The 'bucketsshopsa owe their origin to the
prohibiting Of the dealing in smaller lots than LOO
shares on the floor of the exchange This was
distinctly aimed to prevent speculation on a
small scale, which the organizers of the Stock
Exchange regarded as deanoral7zing to the bust
ness.
The gambling spirit among lesser capitalists
was thus discouraged but it was bound to find a
field for exercise. Some brokers endeavoFed to-
meet the demand by dealing in small lots and
patching them up to the required amount. Sew
eral firms now make this a speciality, but the
class Of people to whom they appeal are i4npa-
tient Of formalities and delays. They prefer TO
hand theif money s0yer tho counter take a re-
eeipt, ana let the matter be speedily determined
for or against them. Bucket Shops" as now
constituted originated with the establishment of
the Gold and Stock Telegraph Company's tick
ers. They became at once popular,
until there are now at least dozen
'-bunket shop" Offices, many Of them do
located mainly on Broad street and Broadway
Such names as the Public Stock Exchange are
adopted, and many have fine situations and
handsome quarters. Even in duh season they
are thronged. A long cashiers counter, crowded
like pool sellers table, a blackboard for the
quotations, a boy shouting cut the price from
the tape and forty or fifty seats in the body of
the room are the usual appurtenanees of the
'sbucket=shop.a The NEST striking feature is.
the number of elderly men within them The
an active market the speculator is apt to win a
considerable amount or to lose everything.
By the rules OF the 4sbncket-shop6p when
the margin is diminished to a certain
limit the speeulator is wiped OUT in other
words he loses all his stake irretrievably A
heavy break in the marketbrings to many of the
stbucket-shopsp scenes Of Wild excitement. It is
not . rare sight to see q man faint away mhen he
sees all his money swallowed up.
Whether there is morally any difference be-
tween gambling in stocks f0fstakes of ahundred
thousand dollars, or only for ten, is an open
question, but the fact remains that the opera
tions of the Stock Exchange are founded on
Legitimate business while bucket shop speeH-
lati0n has no possible object but gambling
The war Of the Stock Exchange upon these
places began with tlseir appearance An effort
was made during the last session Of the Legisla-
ture to carry through bill suppressing them,
but the attempt wns not successful.
The governing cOmmitteeNof the Stock Elk
change nave nov taken the matter ia hand and
determined TO resort to extreme measures The
plan, which has not yet been made public will
be considered by the committees at it's meeting,
next Wednesday. It will probably be aimed to-
to prevent the "bucket-shcpsT from receiving
quotations by the Gold and Stock Telegraph
Company's instruments. The contracts of
the Western Union company with the Stock Tx
change, for which the telegraph company paid
an enormous sum, was made on the terms that,
in case Of objection, ne quotations should be
furnished to rival stock organizations, Hitherto
the "bueket shops have not been considered in
the light of rivals, and no objection hns been
made by the Stock Exchange, but in this in
stance it is probable that the terms OF the agree
mont will be enforced, and an effort made 10 de-
stpoy the aoodes Of the small epeeulaters.