The evening times., 1895-11-23

Daniel II. Ferry, one OF the two agcnts OF
| the Hodgen Commission Company, in
| dicted for keeping so-called bucket shop,
at No sos Seventh street, in this city, WIS
put on trial before a jury today in criminal
] court, No. 9, Justice Cox presiding.
| II is the first prosecution attempted for
/ such an offense under the law passed by
| Congress twelve years ago, and the suit
was bronght by mutual consent, as means
| oftesting whether or not the bus siness carried
| on is legitimate.
The United States was represented by
| District Attorney A. A. Birney, and tile
defendant by Messrs. IL. Z. Davis and ClIas.
| c. Tucker.
Mr. Birney opened for the Government
in brief address presenting the case, and
was followed by Mr.. Tucker for the do
fcnse.
MIR. Birney explained the operations OF
legitimate dealers and contrasted the bus l.
ness with that of the bucket shops. The
latter, he said, is in all respects up to
certain point the same SORT of a dealer
as the other, but he does not propose TO
buy ana sell. The broker deals ON margin
only, or at least TO the extent of IS per
cent of the business transacted, and does
not propose to buy or sell stock or grain
OF provisions. In this respect he differs
from the legitimate dealer. He will bay
stock IL desired, but il isn't his business
10 do so. His business is to bet or wager
money On stock transactions in New York
or else where.
WORK OF THE TICKER.
His office is provided with two telc-
graph iDstruments-oue rapid transIntter
and the other printing machine known
ticker" that prints the sales and the
prices paid on exchange. The fast wire
gives advance Information Of probable
transactions; the ticker notes the actual
business done.
A man may deposit $40 on what is
known as a one-point margin. but the firm
does not telegraph the order for the STOCK
or other purchase, the business being
done absolutely in the office here.
''If stock goes below a certain point"
said Mr.. Biruey in his remarks, "tle broker
gets my $40, if / am a customer II
the quotations rise win: If they fall lose
"It is simply a bet. He deals on COM
mission hut he is not my agent I'm the
sense that the term Is used on the stock
exchange. 1t may be manipulated in my
favor, i'll which case am the winner, other
wise am not"
Mr.. Tucker, for the defendant, said the
trial of the issue had been sought as means
OF determining for the defense as well as
the government whether or not the broker
age was legitimate. He denied, and said
1t would be proved. that the transa ctions
of the firm were in any respect different
from those in the stock exchanges every
where.
The term .'bucket SHOP" he said, was
derived from remark once made by a
Chicago dealer. that the business of a local
dealer, that the business Of such concerns
was but drop in the bucket to what was
done on the regular exchange; but it had
become an epithet in the mouths of rivals
and other objectors.
John B. McKeever, an empioye in Ferry's
establishment. the man who receives the
New York and other quotations over the
Morse instrument, was put upon the stand.
He went into a minute description of the
business of the place, claiming that the
firm pursued the same course as other es-
Establishments in the regular exchanges. A
man deals on margins, and the firm did
not forward the order except when re-
quested TO do so. Thecustoner did not often
demand it-probably one per cent OF the
customers did.
BETTING NOT ALLOWED.
There is no known instance, he said,
where the firm had declined to order the
stocks when requested TO do so, and he
denied that betting was allo wed in the
room. Witness had been employed in of.
fices In New York, Philadelphia and else
where.
1t was stated, also, that the company
has a paId.up capital OF $40, 900 and cash
assets of S15O,OO0, and is, therefore,
amply able to meet the purchases.
The witness was examined and cross-ex-
amined, and was occasionally interro-
gated by the court upon the various points
involved in the method OF conducting mar |
gains, and it was shown that the GUS |
toner has the right within three days to |
demand the delivery OF whatever may have |
been the purchase.
Tie jury was excused until Monday, and |
the points of law involved were argued |
by counsel, Mr.. Tucker opening, Mr.. Davis |
following and Mr.. Birney making the clos |
ing speech.
The decision in this case viii determine |
the issue under both indictments, the CO. |
defendant being Samuel C. Heald. The |
Hodgen Commission Company, with prin- |
cipal office in Philadelphia, has two branch |
offices in Washing ton. the other, under Mr.. |
Heald's management, being located in the
Building.
The court will charge the jury on Monday
Ipon the law points. and the jury will find
TO the Instructions upon the eyi-
ience and concessions adduced.
There was large array OF authorities
rom which counsel quoted. the defense
having eighteen law books before them and
he district attorney facing an equal num-
nor