Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-11-26
Judge Coz Decides That It Is VIC
lation of Law.
1 SURPRISE SPRUNG ON TEE COURT
Descendants Counsel Asks PERMITS.
sion to Produce Witnesses.
NEW EVIDENCE PRESENTED

Judge Cox, sitting in Criminal Court No.
q today ruled that the bucket shop" brok-
erage business in the District of Columbia
is in violation of Iaw-that Is on the stip-
ulated statement of facts presented to the
court and read to the jury. The decision
was made in the case Of Daniel H. Ferry,
| who, together with Samuel c. Head. jr..
was indicted Thursday last by the grand
jury for setting up gaming table Messrs.
Ferry and Head are the managers OF the
Hodgen Commission Company, stock brok-
ers, in this city. and the case when was
| brought to test the applicability of the law
in such cases was placed on trial Saturday
| last. AS stated in The Star. after the pre-
sentation of the testimony OF one witness
Attorney c. c. Tucker, for MI, ferry'
asked that the Jury be instructed TO re-
turn n verdict of not guilty. The jury was
then excused, and the remainder or the gay
devoted to arguments on the apphcapluty
of the law to the case
The Supreme Courts Decision.
In disposing of the motion that he IN
struct the Jury to return verdict in favor
| of Mr. Ferry, Judge Cox this morning quot
ed from the United States Supreme Court
Reports, as follows:
THE generally accepted doctrine IN inns
country is that a contract for the sale OF
d
| valid, even though the seller has not the
goods nor any other means OF getting them
than to go into the market and buy them;
but such a contract is only valid When the
goods ar, to be delivered by the seller and
the price to be paid by the buyer AND IL
under guise of such a contract, the redi III
tent be merely to speculate IN the rise or
fall of prices, and the goods are not 10 pc
delivered, but one party is to pay to the
other the difference between the contrac.
price and the market price OF the sooos az
the date fixed for executing the contract
then the whole transaction constitutes
nothing more than a wager, and Is null anu
! void
The Course of Dealing.
Judge Cox then considered the course OF
dealing in the alleged bucket shops. reeiting
that sales and quotations are supplied ana
customers order the purchase of stock at a
! certain price and deposit the price and
margin. In the majority of cases, said the
court, there is no purchase of stock at all,
and the broker does not incur any FISK
whatsoever. If the stock rises the broker
pays the customer the difference IN casa
between the contract price and the ad-
yarced price The whole transaction. said
Judge Cox, is simply money staked. Ii the
stock sinks. the broker wins, if it rises, the
customer wins.
The only question to be considered, then,
continued Judge Cox, was how far the
terms of the expressed contract between
the parties legalized the business. The con-
tract OF delivery submitted by Mr.. Ferry
in his statement explaining the business.
while legal on it's face, would not stand If
suit brought. In any event, in the
opinion of the court, the broker could not
| be held responsible for more than the diff
| ference between the contract and the ad-
vanced price, for the contract does not Sc
| cure to the customer any more than that
The form of contract, however. did not
enter into the present inquiry. Judge Cox
went on to say, and he quoted from SUI
| preme Court decision to show that gambling
| is no more the less so because it is carried
on under the guise of legitimate business.
| In point of fact, sad the court, no stock is
| bought and none is sold; if a fall exhausts
| the margin deposited the interest of the
| customer ceases and he loses his money.
| The contract acted by the parties is
| different from the printed contract pre-
| pa red to give color to the transaction.
| I'm 81 cases out OF 100" concluded Judge
| Cox. the broker doesn't buy any stock at
| ALL Why? Because the transaction is TO
| be closed by cash payment by the party
| who loses. l think the jury is warranted in
| finding that the business is really a wager
| ing business. l feel bound to overrule the
| motion to instruct the jury to find for the
| defendant
4 Surprise Sprung.
Mx Tucker here sprung a surprise on the
court and the district attorney by announc-
| several witnesses. He asked a recess in
order to secure the attendance of the wit
| nesses and his associate counsel, Mr.. Henry
| E. Davis Although the request was strongly
| opposed by District Attorney Birney, Judge
| Cox ordered a recess until O'Clock
The Trial Resumed.
The trial was resumed at I o'clock, the
defense calling George Hopkins. who stated
| his business to be that of a broker. Mr.
| Hopkins testified that he was in the habit
| of doing business with HodSen & Co., al
| ways by contract, and was emphatic in
stating that he had received certificates OF
stock from the company. He had not
received any certificates Tor year or moro
| and certainly not any since July l last,
the time covered by the Indictments.
| c. l.. Jones. a pension and claim attorney,
next took the stand. He had done bust
| ness with Hodgen 4 Co. since July /, he
! said. giving them certificates of stock and
| bonds to sell for him, and hal also bought
| stock through the company. He mad also
| dealt on margin.
Il. ID. Casey, the next witness. stated
| that he had been dealing in storks since
| 1888. and had done considerable business
| with Hodgen & Co.. always on contract.
Mr. Casey had in his possession two con-
| tracts, one dated October %. 'S!8, which.
| he said, are still ii. force. and on which
| he could receive certificates of stock at aEy
| time.
The Defendant the Stln0.
The defendant, Daniel Henson Ferry,
| then took the stand. He explained the DIS
position of orders received for the purchase
| Of stock and stated that at the close of
| business each day a report is made TO the
| home office in Philadelphia. The company
| Is always ready to deliver the certificates
| of stock. for just much money is made
| that way as when the papers are not turn
| ed over
| Only Tive Certificates in Two Weeks.
| On cross-examinatien of Mr.. Ferry it was
| brought out that in the last two weeks the
! Hodgen Company, at the office, 60s 9TH
| street northwest has delivered but two GER
| tificates of stock in the handling of over 500
| orders. Sugar stock to the value of $Ja,hT'
| has been bought and sold in the time men,
| toned. but 70 certificates were turned over.
| The witness. in reply to questions. explain
| ed at length the details of the stock brokins
| business. and when asked if he felt that he
| lad a right to refuse to buy back stock sold
| to customers said that he most certainly
had.
| Then" said Mr.. Birney. "a bucket shop
! Is even worse than thought 1t to be-"
That shows replied Mr.. Davis, that
I vo,r ooroo {fEou If roD,r1