New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-03-10
HAS A SNAG BEEN STRUCK?
THE STOCK EXCHANGE MAY HAVE TO
GIVE UP ITS WAR ON BUCKETsHOPS.

THE STOCK EXCHANGE MAY HAVE TO
GIVE UP ITS WAR ON BUCKET-sHoPs.
A REPORTED OPINION BY ITS COUNSEL THAT 1T
CANNOT coNF1NE THE GIVING OF QUOTA
r1oNs TO ONE COMPANY.
For months the Governing Committee Of the
Stock Exchange has teen struggling with the PROB
lem how to extermnate the bucket-shops IL Is
apparently no nearer conclusion than when IL
FRS, took up the subject Could the quotations OF
the Exchange be kept from the bucket-shops they
would TO, be able do business, but II has prac-
@,calv been decided that II the quotations are
supplied 10 members Of the Exchange. they must
also be supplied TO the public. including the bucket
shops An opinion to this effect Is reported 10 nav
been given by Lewis Cass Ledyard, the ccunsei io'
the Exchange The matter will come up beiore 'he
Governing Committee at a meeting to be heid AT S''
o'clock this afternoon and II is not improbable that
at this meeting the proposition to cut OF quotations.
may finally be abandoned Other measures 10, VIC
protection OF the business Of the Exchanee' "o"
ever may. and doubtless will, be taken under con-
sderation 1890,
AS has already been explained in these columns
there are two ticker companies which oisSen''"'o
the quotations. One is the New-iorK Vuo'a
Company. Fifty-one per cent OF It's caPi''i
OF SlOoooo is owned by the Exchange. inc oe'e'
part of the remainder Is owned by Johh w. VIZ"
az the president and chief sto"kholder OF the ros
tai Telegraph Cable Company the Ne"-io'N
Quotation Company furnishes quotations u mem
hers OF the Exchange only. The other compai! -
the Gold and Stock Telegraph Company whch Is
owned by the Western Union Telegraph 'o'''P"'!'
7, furnishes quotations to the public. under which
head ere included the bucket-shops. fNe-!e".
contracts with both of these companies .NP''
Juno 80 next. and ninety days notice OF AN h'''"
,;on not 10 renew them Is required III such nv
ticc is to be given. Il must be given Oh OF oe'o''
March 81. -, ao,
The Exchange collects the quotations OH i's nv
and delivers them simultaneously 10 the in
companies each of which pays sou" yea 'O'
the quotations The New-York Company has apo",
five hundred tckers in operation me EOiu n am in
Stock Company has four or five times a. , ,i
GperaTn ,b nnn IN its general news cker The
intention or proposition. az one tirle W." ,h Nv
Vork GompSnv to its own members and to terml1
nate relations entirely between me ~ ndxiser of
the Cold and Stock Company. Inc leg"i auN ,a,
ne Exchsnse is said 10 have told the Goverhims
Committee thai II NTH the New-york Quotation
Company II would have 20 maxi an H., al Gn7S and
Stock Company or in fact with am O1her , fom
psny nigh, desire 70 hanGIs stated n 20 have
given The further opinion that II the Excra ,nn
Sa for the use of their customers ana exaGed
payment for the quotations !, con- members
MR.. lEDYARD DECLINES TO TAIN
Mr. Ledyard. when asked AT his Office NO. Oh
v.au.s, wbe.hor in his opinion TIE Stock Ex-
IL.
change could distribute its quotations 10 sun "s'.'
declined 10 say anything OIL the SUBJECT vi, ""F
or the other He said ne could not discus" ''' ~
The cker companies charge $50 mGmin f0 da SH
instrument Allowing weliy,hve onjy So cents
day For this nsgnifcarJ s1n nn bmnncs as the
Offices me members of ne S,orS ~ Stocks are
inhni,ey larger nnmbeT OF ,5 5,n en- the Exchange
rhSrc is not annTa Which doc not contain from
or mn bIcke'-SnOp- tn1t II hNt o''
enc o 10 Of the New-Yofk Stock Exchange
, u ha5 'S deal in 5000 shares day This gs Is
probably excessive, bu Ii + nor 700 - 6O 0ll
s shaI s"s dav Could the bucke;shops be closed
the Stock Exchangs brSker c coo %Sn SHARES dav The
transactions the EXCHANGE ior ,hSn 100 o.,
TINE haVG 6ap o' therefore the business OF the Ex
change would be doubled 10y closing 'he '"'Ne'
shops.
SOME INTERESTING FIGURES.
4, the reru,or commission Of one-cighth Of one
.r can, the brokers compensation for executing
orders for 10000 shares of STOCK wonln % 60.
,rh ,re are about 400 brokers offices ID me wan
s,roc, dstrc; which are aciiveiy engaged in bnsl-
ness on the Stock Exchange. In this list are not
INCLUDED the concerns which 90 rot invite specu-
la,ivc orders but instead confne themselves 10 IN
vestment orders. The "two-doilar p''h"iS
hrokers who buy and sell for other brokers. but 40
moi receive or deliver socsalso are no, coun co.
DIVIDED into 400 parts, $500 would allow sSi % i VI
ash broker s oSe brokers' S GcS OF %ouS
The aggregate for all brokers offices w0uld oe
81 1850 his sum. then. t. what the proktr* Oh
Tho Stock Exchange are. at the lowest cdicH't ION,
losing bv the existence Of bucket-shops idfee
nronortion Of the present dealings on the ENchahe
are bv mem bers for ,heir personal account ana
renresent no commissions at all. or al mosi .thrtc
aud shilling'-S l2i. per lyb sharcs-W ne,l onc
member buyS or sells for another and clears me
stock Consequently tho receipts OF the brokers
In the sha pe of commissions are not now any Whcic
ncar ne r.at as the amou II lost by reason or me
diversio, OF business the bucket-shops- II j.
true thai IN. bulk of the buckct-Shop business i
in I've and ter-share lois OH one per cent margin
The : ock Exchange brokers would not OF course,
accep; such orders. but there Is erouGh business
in the auckei-Shons In lo)-sharc lots on . ana ]"
per cent margin to make up 100000 SHARES a DAY.
The commission charged in The but ket-snops j.
as a rule One-sixiecnth of one per cent or one
half thai charged by the sock EXchanse brokers,
For another thing few OF the bucket-shopS charge
interest; aad trades can he opened ana closed as
the quotations appear The dishonest bucket-snopS
cheat their customers by manipulating the quota.
lions There IS SLOW ticker and fast ticker
bucket-shop NAV have slow ticker IN tnc
ticker' i'm Il private room. The Keeper OF ne
bucket-shon thus has great advantage over ms
cusiomors He knows before his customers the
nrices at which stocks have sold. and he can re-
reive or reject their orders. as may be u ms prom
end their loss outside Of New-N TX. in places
,vhere he quotations received by special wires
they may be juggled with ease
WRITTEN ~ THE SHADOW OF DEATH