New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-03-20
iBUCKET-SHOPS SHUT OUT.
STOCK EXCHANGE SERVES NOTICE ON
THE WESTERN UNION TELEGRAPH CO.
THE CONTRACT WITH THE COMPANY TO END
ON JUNE 80 OWING TO THE VIOLATION OF
-. THE AGREEMENT IN REGARD TO
- TIcKERS-FUTURE COURSE
AS TO QUOTATIONS.

AS TO QUOTATIONS.
Francis L. Eames president OF the New-York
Stock Exchange made the following statement
yesterday: THE New York Stock Exchange. by a
unanimous vote OF the Governing Committee has
decided not TO renew the existing contract with
the Western Union Telegraph Company and
formal notice TO that effect has been sent. The
contract will terminate June 80 The members OF
the Stock Exchange convinced that the West
Union Telegraph Company has not only made
attempt at all 10 live up to that contract hut on
the contrary has made every effort to increase the
very business II contracted not 10 do.
give years ago the Western Union Telegraph
Company signed contract by which. In return
for being supplied with quotations by the EN-
change It agreed not furnish .ickers 10 any
person. firm corporation or organization In New
York City not already having its Instruments. I'M
I'll the application had been submitted TO and APP
proved by the Stock Exchange. Tho telegraph
company has for five years violated this contract
by placing its tickers wherever 1t has seen Nv IN
New-York City without the required submission
and approval In a single instance. The Western
Union Telegraph Company also contracted not TO
furnish TO persons who may be directly or In
directly engaged in the promotion or maintenance
OF bucket-shops the reports supplied by the STOCK
Exchange
"The telegraph company has for five years vo-
lated this contract. by furnishing the reports to
practically every bucket-shop in the United states
In other cities where the business Is large enough
TO warrant the introduction Of tckers. the west
ern Union Telegraph Company furnishes tckers
to bucket shops. These tckers arc for the use OF
the customers Of buckct-shops, and are supposed
10 furnish tn latest obtainable quotations. But
1T the same time the Western Union Telegraph
Company is furnishing by private wire 10 each
bucket-shop manager in those cities rapid express
quotations. which are several minutes in ADVANCE
Of the quotations by the customers. As the
bucket-shop executes order but takes the
posed 10 tina, of the so-caled customer. the op-
portunity for fraud and deceit IS perfect and is
not wasted. In excited market margins are
often already forfeited 10 the bucket-shop at the
time the trade begins. The aid of the Western
Union Telegraph Company is essential 10 this or
ranized system Of fraud and that aid has not been
withheld"
A new contract will be made with the Gold ana
Stock Telegraph Company. the subordinate COM
Of the Western Un S for od and SOCK
Company will be required TO keep quotations from
There are two ticker companies WHICH dissent
nate the quotations one is the New fork Qu0, ,i
stock Se of f sos is owned by The Exchange The bet
ter part Of the remainder Is owned ny Joi,t ~ nc
Postal TELEGRAPH Gable Company. The New-York
Quotation Company furnishes quotations 10 mem a.
the Cold and stock Telegraph Company which Is
owned by the Western Union TELEGRAPH Sompa aIt
II ars iScIded tho bucket-shops
Exchange collects the quotations OH Its HpoL
and delivers them simultaneously 10 the ticket
Companies each of which pays S3OoVD year lor IN
nuotafjOns The New-YoIk Company mas aDOut NV
Hundred tickers in operation. The cola ana STOCK
c,omnany has four or five times az many IN opera
lion and In addition sends quotations AT intervals
through its general news tckcrs. a.. -
The ticker companies charge $50 a month lor an
,nstrment Allowing twenty-five business Gays 10
a month the cost Of ticker is only y, cents gay:
Tor This insignificant sam bucket-shop can nave
the same facilities for doing business as me oces
NJ the members of the Stock Exchange. An mn
nteiy larger number Of shares OF STOCK are nea
n In the bucket shops than on the EXCHANGE ihere
&c not a town of consequence in the unlted states
and Canada which does not contain from one 10
dozen or more buCket-shops that trade on the quo
tafions of the New-York Stock Exchange. l.,
THE commission charged in the bucket-shops Is:
oe rule one-sixteenth of per cent, or one-neII
that cha rged by the Stock Exchange brokers'. FOR
another thing few OF the bucket shops charge IN
terest and trades can be opened and closed as inc
nuotations appear. The dishonest bucKet SHOPS
cheat their customers by manipulate the quota.
tions There is a SLOW ticker" and fast ticker.
A buckei-shop may have slow ticker IN tne
room where us customers congregate ana iast
ticker I'm a private room. The keeper OF the DUCK
et-shop thus has great advantage over ms Luz
TONERS He knows before his customers the prices
at which stocks have sold and he can receive go or
reject their orders may he TO his proft anl ther
loss Outside OF New-York. in places where the
quotations are received by special wires, they may
no fuQ oh VI