The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-12-13
THE BUCKET-SHOP GAME
TT Is VENTILATED IN A SUIT BEFORE
JUDGE ALLEN.
l.. A. Ixinsey & Co. Refuse to Settle
with a Patron on the "6am-
bling Plea"

In the Circuit Court yesterday, Louis A.
Kinsey, Of l.. A. Kinsey & Co., brokers in
the Commercial Club building, gave very
lucid description of the "bucket-shop' sys-
tenn as it is carried on by his firm. The
court and jury were much interested in Mr..
Kinsey's recital of how margins" are ma
nipulated. The case in point is the suit
brought by James Boyce, of Muncie, against
i. A. Kinsey & Co., to enforce the payment
of note The company is Frank NJ
ketcham, Oren II. Taught, Miss Maud S.
Elliott and the wife of Louis a. Kinsey
The concern has been operated in the Com
mercial Club building for several years
TIE members of the concern all came to
Indianapolis from Cincinnati. Miss Elliott,
who is relative Of Mrs. Kinsey, is cashier
for the company. They all own stock in the
business, but Louis A. Knsey is the small
est shareholder. He testified yesterday that
he owned one fifty-dollar share. His wife
owns the controlling interest, and has 500, 600
of stock in the concern. Both the ladies'
yesterday testified as to what they knew
about "bucket-shop" operations.
After coming to Indianapolis the Kinsey
concern ran along in a modest way until
the fall of 1895, when it was Incorporated
with capital stock OF $4,000. Prior to this
time James Boyce had been dealing with the
establishment. Mr.. Boyce is said to be one
Of the wealthiest men of Muncie. He claims
that in July, 1895, few months before the
bucket shop" was Incorporated, there was
due him the sum of 81 333 on account Of
dealings in grain and other commodities
He made demand on the concern for 81, 0OO
and AYERS that l.. A Kinsey informed him
that the business was embarrassed fnan-
pfa
bucket shop" was broke there ought to
be settlement. Kinsey, it is averred, re-
piled that if he was compelled to pay Boyce
all he owed him at that time he would be
ruined. 1t was then arranged that Kinsey
should give his note for the full amount
The note was executed, and afterward there
was paid on it the sum of $3,7OO. Boyce is
now demanding payment Of the remainder
The defendant concern is resisting pay
ment Of the note on the ground that the
obligation is practically a gambling debt and
cannot be legally collected. The plaintiff
contends that when he dealt with Kinsey he
did not know he was patronizing bucket
shop. He believed his money was being
used in speculation on the New York and
Chicago Boards of Trade. He did not know
he says, that he was simply dealing in
margins. On the other hand, it is claimed
that Boyce knew all about the character Of
ms Investments. On the witness stand l..
A. Kinsey testified that Boyce once said to
M! MN that ne could get the best of any
bucket shop, and laughingly added IF
you find m getting the better of you, you'd
better hedge"
A smile fitted across the face of Judge
Allen when the pretty cashier of the COM
pany took the witness stand. This was Miss
Maud Elliott, one of the stockholders The
young woman wore a fetching little walk
ing hat, with a white veil and q military
Jacket with two rows of brass buttons down
the front. She was as cool and serene in
the face of the enemy as an admiral on
the bridge, and told about the reorganization
or the company and of her connection with
1t. She said under the old arrangement she
received per cent. of the profits When
they had settlement at the end of the old
company's existence she received $500 as her
share of the profits.
The attorneys for the plaintiff questioned
Mrs Kinsey to show the financial condition
of her husband at the time of the reorgan-
ization. She testified that Kinsey gave her
$2O,OOl which she invested in stock in the
new concern. She also testified that in 1896
her husband purchased a piece of property
on College avenue, paying $4,000 for it. 1t
is the contention of the defense that Boyce
has lost nothing by his dealings with the
bucket shop" and that he is already
ahead of the game"