The times., 1897-08-19
Receiver Has Taken Possession
and the Brokers Wait.
OPINIONS ON THE DECISION
Judge BradIey's Idea as to the
status of Trading in Margins
Before the LAW Much Commented
on in washington's Wall Street
Its Probable Effect.

disposing of Miss Channihg's Jeweirg' was
a topic OF much interest. Even the very
uncertain condition OF the stock market
yesterday, apparently not knowing which
way 20 rurn, up or down, when either way
would mean ..lillions TO somebody, could
not keep people fTon much cUlnInent On
the decision.
The case is one in which the much de-
bateti question of the status or tile stock
brokers In law is concerned. Although
the cause las not yet been tnefl, Judge
Braalsy showed his own idea very clearly
IN granting an injunction against Mac
d0naid, Bullock & Co. and In the eN-
preston OF an opinion that certain notes
civea by Miss Claiming as a result or her
stock deals with the firm were null and
void and not binding.
Tnis. of Course, may not be tie final
decision Of the court in the case, but IL
is probable that Judge Bradley will rule
very much after this fashion.
There have been similar cases in Wash
ingtcn, decided IN just this way, aud one
at least OF them il interesting at the
moIapitt, on account OF its absolute parallel
10 the present case. Two years or more
ago prominent real estate broker here
was sued for $4,000 By a New York stock
broker. The origin of the suit was that
this real estate man had been for long
time trading in stocks with certain Wash
InEton broker. He had giveh his notes fTom
time 10 time. and they finally amountedto
the total SUN Of $4,000. These notes the
washington broker could not collect. He
turned them over to the New York broker
with whom he placed lis trades and that
croker sued TO enforce their payment
Mr Ed Hay ana Mr.. John Ridout were
on opposite sides Of the case, and Judge
Rradl-y, tie same justice as the one who
rendered the decision on Tuesday, was
the c:le before whom the suit was tried
After the evidence was all in Judge Brad
ley cid not even let the case 90 to the
Jury. .'GeItIemen,' he said, this case is
a very simple one. Under the laws OF the
District a gambling debt is not collectible
TIE transactions for which these notes were
given were very clearly gambling tr ansac-
tions The notes are null and void. and tie
suit is dismissed
The gentleman who refused to pay up
his losses in this way was, in The parlance
OF the street, rank welcher. few
months after that he had made $4,000
or $4,000 in the stock market, and was
approached again by the Washington
broker, but flat.y refused 10 pay up, and
tie Washington broker still has the real
estate mans paper for $4,000 marked
''N c.
II this decision was q precedent, and
II IL is TO be considered that all such
transactions as those which occurred be-
tween this broker and this trader are
gambling. the Importance Of this condi-
tion OF things once established is almost
incalculahle to Washington business men.
Hundreds os thousands OF dollars change
hands in the brokers offices doing busi-
ness on methods identical with those Of
Macdonald, Bullock & Co. and of the
Washington broker who lost his $4,000.
Ii Seems very clear under this de-
cision, even if the transaction were Il
n8sh ore, and the money Were paid and
spent afterwards by either the broker or
the trader, 1t would only be necessary To
go into court and prove the transaction
TO enforce restitution In many cases
real estate has changed hands in this city
OH account OF transactions between trad
ers and stock brokers. Sometimes the
traders securing the brokers' real estate
and sometimes the transaction being the
other way. apparently in all these eases
1T would only lie necessary TO prove the
Circumstances 10 have the deeds declared
void AID restitution of the realesfate made.
The opinions OF several brokers and ex
pers were obtained by reporter for The
Times yesterday on the significance oi
Judge Bradev's opinion. The generalidea
seemed te be that Judge Bradley had
meant 20 draw the line very closely between
brokers who deal in stocks on the New
carry on the business technically known il
the language Of the street as bucketing. 4
bucEetshop Keeper is broker who runs
q gambling game pure and simple. The
trader In this cese bets that certain
stock VIII, according to the quotations ..
tie New Yolk Stock Exchange, fluctuate
I'm pnce in certain direction, either up or
down TIL, bToker takes the other end
OF the game, charging his commission 70;
running the business and giving the trader
the choice. Such a business is similar in
every detaB 10 u faro game. The broker
does not place his business in New York,
but puts the traders money in his pocket
What are called the legitimate houses are
those which simply make sales in New Yorl.
for their customers, charging a commission
for the transaction.
This is an very plain and easy TO un-
derstand, as far as it goes, and Judge
Bradley's decision was aimed at bucket
ing The difficulty has always been:
however, in final tests. both in this city
and in New York, that it is very diff
cult 20 prove that any particular broker
IS doing a bucket-shop business, or that
he would not have been ready to deliver
the stock If it were called for
Mr. IS. D. Hibbs said 10 Times re-
porter yesterday, Judge Bradleys de
clsion was unQuesticnably in accordanc.
with tie District law against gambling.
II IL can be proven that Macedonia Id,
Bullock s. Co., carried on a bucket-shor
business, the final decision in the cas-
will undoubtedly be against them. How.
ever, do not believe that Washington
brokers, any OF them, win be affected
even If this decision is made. The thing
has been tried before many times. and
has always failed.''
Mr.. Klausman, with Silsby & Co.. said;
I'm New York, where cases of this kind
come up more frequently, the law has
always protected the brokers, no matter
what the nature OF their business was
Notes are always paid IN New York, and
sometimes they are collected by law. A
broker can go into mans house and tai
his wifes sewing out III he want,
90.
AS TO tire matter of the intended trans
fer of stocks in deals on margins, tie trad
ersin New York tho maketheIr deals spec
ulatively and not for Investment never
-