New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-02-06
WAR ON BUCKET-SHOPS.
DETERMINATION OF THE STOCK Elk
CHANGE AUTHORITIES.

no ONE But MEMBERS LIKELY TO BE SUPPLIED
WITH QUOTATIONS AFTER JUNE go AND
THEN ONLY AT REGULAR INTERVALS.
The determination Of the cket-shops has be-
come burning question in Wall Street. The
New-York Stock Exchange Is preparing for a
supreme effort TO this end. The bucket shops
thrive because they have access to the quotations
of the Stock Exchange. Could they be efrectually
deprived OF the quotations. they would be forced
out OF business. The present system OF dssem
mating quotations must be kept up until June 30
next. for until that date the Exchange Is bound
by contract to supply quotations TO the two
ticker companies. the New-York Quotation Com
pany and the Gold and Stock Telegraph Com
pany. AS is generally known. the New-York
Quotation Company is controlled by the Ex-
change and supplies the members OF the Ex-
change while the Gold and Stock Company IL
owned by the Western Union telegraph Com
pany and supplies n-members. It H. of course.
the tickers Of the Gold and Stock Company that
the bucket shops use.
There Is a provision In the ticker contracts
tina. niretc days notice shall be given IL the
Stock Exchange proposes not 70 renew them. II
is certain that before March 30 the Exchange
Will inform tho companies that the contracts will
not be renewed. at least on the present terms,
There viii he some sort OF service by the New
York Quotation Company for Stock Exchange
members by arrangement With the Exchange
after June 30, but tho Exchange may cut off the
Gold and Stock Company altogether. The Gov
erring Committee the administrative body OF
the Exchange. has not reached final decision in
the matter, hut there IL a strong disposition TO
furnish quotations In any form 10 no except
members. There Is also disposition to transmit
quotations to members only ut intervals OF fif-
teen minutes or half an hour. and then. instead
OF recording each transaction. 20 give the total
OF the sales at the different prices. This is the
plan which is at present looked upon with most
favor
The ticker companies pay the Exchange $50 600
a year each for quotations. and charge their
customers 500 month each. As there Is an av-
erage Of twenty-five business days month. the
quotations cost the bucket shops only so cents
day. This trNirg expenditure Is. in fact. the
entire basis Of the business Of the bucket-shops.
The Gold and Stock tickers are placed in hotels.
cafes and other public places, and the chief
gumeDt in favor Of their continuance Is that
they induce speculation While hat may be
true, the Stock Exchange authorities say that
most Of the business which the tickers create
Stock and Petroleum Exchange. where the COM
missions charged orders are one-half what
they are on the Ncw-York Stock Exchange. or
one sixteenth OF I per cent. which is equal to
Sc % on 100 shares for buying and the same for
selling.
There would be some advantage in dealing
in the out-and-out bucket-shops il they were
honest. Their commissions are low there are
interest charges to pay. and fractional lots
may be dealt in at the prices Of 10O-share lots.
For another thing. trades may be opened and
closed quotations received. No stocks
are bought or sold by a bucket-shop owner.
The customer simply bets that a stock will go
up down. and the bucket-shop keeper bets
that 1t Will not If the bucket-shops not
in receipt OF continuous quotations they could
not do business The quotations are now sent
out each sale is made
1t is not too much to say that the bucket
shops In New-York and throughout the country
which trade on the Stock Exchange quotations
do much business in stocks every day as Is
done the NewYork Stock Exchange. The
New-York bucket-shops. or many of them. have
branch Offices in all towns of consequence In
the United states and Canada. There is one
bucket-shop that has about one hundred branch
Offices. Leased wires run to ali these branch
Offices for the transmission Of quotations. These
leased wires are expensive, and large business
must of necessity be done to maintain them
It is calculated by the Stock Exchange brokers
that II the quotations were shut off and the
bucket shops closed. the customers OF these
shops who dealt in any considerable amounts Of
stocks would pateoniZe the Exchange brokers
or their authorized correspondents in yariou.
cities OF tho Union
one reason why II IL suggested that the quo
tations shall not be supplied continuously even
10 members Of the Exchange but Internationally,
Is 10 guard against the tapping OF the wires by
the bucket shops There Is feature of r-
regular speculation tina: cannQt be wiped out by
stopping quotatiO and that Is the dlscre-
tiorary order business. where people send heir
m ,nev 10 so-called brokers to be used 'in the
discretion" Of tho brokers" The "brokers'
would keep stealing i, b. making up bogus
statements to show how II had been lost The
only way To prevent these "brOkers'' from do
ing business Is for people 10 cease sending
money 10 them.