The herald., 1897-09-05
They Are Not Run in Vio-
latiOn of Law
THE BURCH CASE DECIDED
1T Is A LEGITIMATE INVEST
MENT BUSINESS
So Says Justice Morrison in His De-
cision Rendered Yesterday-The
Bucket Shops Will Reopen

Justice Morrison yesterday rendered
decision in the case against Preacher"
Frank Burch, in which he held that the
tape games operated in this city were
legal. AS result of the decision the
various bucket shops closed some weeks
ago by the detectives will reopen imme-
diately.
Burch conducted a fake stock ex-
change or tape game at 109 West Second
street, and was arrested and charged
with gaming. The charge was made
that the defendant dealt in fictitious
stock quotations which he drew from
brass box and upon which his Gus
toners placed their money. Burch
changed these quotations at will.
The question was submitted upon an
agreed statement of facts.
In his opinion the Justice says:
The defendant herein is being prose-
cuted under the gaming laws Of this
State, and is charged under section $50
Of the Penal Code. 1t is charged that
fully deal, play, carry on, open and con-
duct certain banking game known as
the tape game: said game being then
and there played with certain device,
to wit: A paper strip called tape con-
tanning certain letters and characters,
box, certain paper slips and a black
board; for money, checks, credit and
other representatives of value Said
section is as follows:
Every person who DEALS plays, or
carries on, opens, or causes to be opened,
or who conducts, either as owner or en-
ploye, whether for hire or not, any
game of faro, monte, roulette, lans-
quenet. rouge ct noir, rondo, tan, fan
tan, studhorse poker, seven and half,
twenty-one, hokey-pokey. or any bank
ing or percentage game played with
cards, dice, or any device, for money,
checks, credit, or other representative
Of value, and every person who plays or
bets at any Of said prohibited games, is
guilty Of misdemeanor," etc.
"The case is submitted upon an agreed
statement of facts, and the question here
presented is distinctly whether the
transactions mentioned therein consti-
tute a public offense under said section.
The defendants place Of business was
store room used as an office, and 80
arranged that his customers could see
the quotations recorded on blackboard
giving the closing quotations Of the
mining stock the previous day. The de-
fendant had brass box in his possession
called stock exchange ticket; in one
side of said box was a small aperture
~ ,{nt, dof 20 MT a no r
strip which bore the market quotations
Of the mining stocks offered for sale; all
of said strip was concealed in said box
except that portion pulled through the
aperture in. said box by the defendant.
A person wishing to tranact the
business then and there being carried or
would buy or sell options on the stocks
offered, paying 81 therefor-the defend
ant charging 1914 cents per share on
each transaction.
Each customer received an acknowl-
edgment in printed form with blanks
properly filled, as follows:
LOS Angeles...... Mr....... No......
ITO F. P. Burch, Dr., Broker, 100 W.
Second st.
ITO sell Cor buy) (a).................
"To commission. Observation-Disclosures.
"By cash.. Observation-Disclosures.
1--WE reserve the right at our option to
close this deal whenever the market ap
proaches dangerously near the limit of
deposit made, without notice. Actual
delivery is distinctly understood and
contemplated"
Said customer was allowed at the
close. of each transaction to purchase the
particular stock upon which he held an
option, at the price indicated and receive
a duly and regularly issued certificate
therefor.
It was stipulated that the companies
whose stock was sold were duly incor-
porated and sold their stocks through
agents both on direct and marginal
sales; that the prices of stock varied
with the demands and speculation of
the Denver Mining Exchange; that the
defendant held powers of attorney from
each Of said mining companies. duly ex-
ecuted, and by virtue of which he acted
as agent for said companies; that said
defendant kept daily books of account
of all sales of stock and accounted to the
said companies for all stock bought and
sold in the city of Los Angeles; that the
said tape was prepared by the said COM
PehASS AAA OoAOi ooo anu u w
them to the defendant with directions
to sell at current prices ruling at the
mining exchange, at Denver, Col.
The contention on the part of the peo-
pie in this case is, that the section under
which this defendant is prosecuted, ap-
plies to any banking or percentage game
etc. and the principal case cited in sup
port thereof is State vs. Grimes, reported
in 50 S. w. Rep. page AZ. That case is ore
in which the defendant was charged with
keeping a gambling device commonly
called a "stock clock" and was prose-
cuted under a city ordinance of the city
of Minneapolis, which provided that IN,
person shall keep or set up any gambling
or gaming"
1t will be seen that said ordinance is
very broad and general in its nature and
applies to "any gambling Device" and
the statement of facts as set out in the
opinion Of the court shows that the ele-
.ment of chance depended entirely upon
the movements of the clock-the clock
was the device.
The court properly sustained the YER.
dict of the lower court convicting the
defendant.
1.-THE contention of the defendant in this
case is tina. the words amy banking OF
percentage game etc., and said prohib-
tied games of section $50, are confined to
III 1t, I, 1t,