The Arizona sentinel., 1893-08-12
BETTING ON ELECTIONS.
Now Recognized as Legitimate
 Branch of Brokerage.
Wall Street Operators Place Bets fer Their Patrons and Realize Large
 Profits - Political Spec
 ulation Growing.

Betting on elections has become a
 recognized branch of the business of
 many Wall street brokers. Toward the
 end of the recent campaign the betting
 on the national election became of such
 magnitude that the names of Cleveland
 and Harrison might appropriately have
 been placed among the stocks and printed with the regular quotations. The Sun thinks it is likely that in future campaigns much more betting than ever will be done by recognized
 brokers, and that the election betting, like other big financial interests, will center in Wall street.
 As the majority of the Wall street bets were not made with the publicity which attended betting in hotels, it was only when settling time came after the election that their gross magnitude became somewhat known. The bettors on the election in Wall street were greater speculators than those who made wagers at the hotels or put up their money at some uptown pool room. Hundreds of men keep balances with their Wall street brokers to be available at any time in stock specula- tion. These accounts differ from the ordinary bank account in that the Wall street account is kept for purely specu- lative purposes, while the bank account is for business purposes. After pros porous business season, when the mer- chant has taken care of all of his own paper and obligations and has com fortable surplus left, he is apt to go to Wall street to invent and usually to speculate, for he regards the Wall street fund as somewhat of the nature of gambling money.
 With such men speculation last au- tumn took for the first time turn to- ward elections, whereas before it had been confined to stocks, wheat, corn, oil and other products with recognized quotations. None of them appeals to the business man as does politics. AL most all business men personally have strong political prejudices. Even many of those who will not take the trouble and time to register and vote have a strong feeling for one party or the oth CT. Wall street brokers have not as yet charged commissions on election bets, and this gave the speculative business man still more of a turn toward election bets, for he did not have to pay a quar- ter commission. It also attracted him from the uptown betting resorts, for any man going to bookmaker to place his money would do little worse than if he could meet at once some man who was as eager to bet on the other side.
 The brokers began by placing cleo tion bets to oblige their customers who had balances with them, and they soon found that the business was profitable. The money was always put up by the customer, and as the brokers making the bet were well acquainted with each other there was no necessity of putting the money in the hands of a stake holder, and the respective brokers could retain the money without paying in- terest. If the election bets were made a long time before election the profits to the broker were greater than if he had made a turn in stocks for his GUS toner, and the bother was much less. It is likely that in the aggregate these Wall street election bets amounted to more than the Hoffman house bets. A man could offer through his broker to place fifty or a hundred thousand dol lars on Cleveland or on Harrison, and the broker would parcel it out in lots in the same way as if he had an order to buy or sell five thousand shares.
 New possibilities have been opened to the Wall street broker now that they have seen how easily they can do the business of election betting, which might be extended to cover any other event of uncertainty or great public in- terest. There is now no betting place in New York corresponding to certain wel-known betting establishments in London and Paris. There are any num- Der of pool rooms, but it requires man of some experience to deal with them; besides, the associations are not always pleasant and the security for payment, if one wins, is not so good as it might be. The per cent. against the player is high, as the expenses of the pool rooms are large, and there is not the open competition between them which ex- ists between the brokers. It now re- mains for brokers to take bets on horse races, as they have taken bets on the elections. They would get different kind of men in the horse race betting, and through the summer Wall street would not be so dull and profitless as it usually is during that season.