The times. [volume] (Richmond, Va.) 1890-1903, 1896-05-08
THE CHICAGO JUDGE ON BUCKET
SHOPS"

THE CHICAGO JUDGE ON "BUCKET
SHOPS"
The whole country was very much
startled startled is not too strong a word)
recently by a report sent out from Ch'-
cago that one of the judges OF that city
had quashed indictments against eleven
keepers Of bucket-shops upon the ground
that they only did at retail what the Board
OF Trade did at wholesale. Ills ruling
has caused the New York Journal or Com
nerce to make the following very sensible
comments upon it:
We trust we commit no contempt OF
court when we remark that the chicago
grand jury which has rendered an addi-
tional large number OF indictments
against keepers OF "bucket-shops shows
a better knowledge OF the facts tnan
Judge Horton, Of that city, who quashed
eleven indictments against bucket-snop
keepers, saying that they only ala at retail
what the Board OF Trade did at whole
sale. and while he regarded Doth as
gambling, the law tolerated 1t IN the
Board of Trade, and therefore II must
tolerate II I'm the bucket-shops ms Is
the talk Of a philanthropist or reform
or. and not OF a judge who IS dealing
with facts and laws and questions OF
guilt or innocence. When a man buys
a warehouse receipt for live thousand
bushels Of grain. ne buys the grain as
really as a man buys piece or land when
he buys the title TO IL. In one case II Is
impossible, and in the other II
IS unnecessary, so far as his owner
shin goes for him 10 remove
the commodity he has bought 10 his
own premises. Suppose man buys a
lot for s.. OOO paying 500. and before the
$500 becomes due ne sells 1t 20 third
party for 81. 200 taking $500 and relief from
his obligation for $500. The transaction may
have been speculation, but II he mas
exercised reason and judgment, II is
not at all gambling, and II Is very closely
analogous to the transaction on the Board
OF Trade. That the goods are 10 be de-
iivercd in the future certainly does not
make 1t a gambling transaction, unless
the merchants who are now ordering goods
for delivery in the fail are gamblers.
The bucket-shOp does not deliver title
TO merchandise, and therein Is the differ
ence between buying goods In the nope
or a rise and merely betting that they
Will rise.
We had occasion some time back TO dis
cuss the distinction between 'bucKet-
shop" transactions and the regular con
tracts Of the commercial exchanges but
the public mind is not clear upon II. ana
the present is a favorable occasion for
stating It again.
The keeper OF the "bucket-snop" neither
buys nor sells anything. HIS customer
deposits sum OF money with him upon
an agreement that II a thousand bushels
OF wheat or one hundred shares OF stock
rise in value one hundred dollars. he
shall have his deposit back and the hun
dred dollars also that the commodity has
risen. But IL the commodity falls one
hundred dollars. the keeper OF the bucket
shop is 10 have the hundred dollars. Inc
contract varies in form, but that is its
essence IN every case. This Is nothing
but n bet by the customer that grain or
stock will rise and a bet by the Keeper OF
the shop that it Will fall.
But that is not the transaction which
takes place when an order Is given
regular broker TO buy or sen grain. cot
ton. or stocks on the Exchanges. In
all OF those cases the commodity is either
bought or sold, as the case may be. in
very truth. The customer orders a brok-
er TO buy him one hundred shares OF
stock for $4,000. He deposits $1,000 with
the broker, who buys the stock for $4,000.
This broker then borrows $4,000 from a
bank to pay for the stock. and he de-
livers 10 the bank the stock itself and
the 81 900 OF money deposited with him. as
security to the bank FOR the loan. The
customer sits down then and waits Tor
the rise rhat he expects IN the price OF
the stock. If it comes, he has the stock
sold. returns the bank its $4,000 with in
terest. pays the broker his commission
for effecting the transaction. and re-
oe!ves the 81 900 he deposited, and also the
addition which the rise in the price OF the
stock brought, If the stock fails, he is
sold out and loses his $1,000. rms is ex-
actly the transaction which takes place
likewise in the case OF grain or cotton
or oil. In the case OF transactions In
the latter commodities. the articles are
on deposit win public warehouse, ana
tho warehouse certificate OF deposit is
delivered as delivery of the commodity
itself
Now any one can see at a glance that
tho transactions I'm these two cases are
OF an entirely different nature. The
'bucket-shop" transaction is gambling
pure and simple The Exchange" trans
action is nothing but a case or buying or
selling goods TO be delivered at a future
day, and all business would come TO an
end II the liberty or men 10 do this at
their pleasure were interfered with.
That the brokers contract is greatly
abused ana resorted to BY many men