The Appeal. [volume] (Saint Paul, Minn. ;) 1889-19??, 1901-06-08
MAY END BUCKET SHOPS
CONJHSCTUFSE AS TO EFFECT THE
NEW REVENUE LAW WILL
HAVE
HARD ADMISSION NECESSARY
New Deal in Chicago Board of
Trade Tickers Will Also IT,
Count - Taking 49,
Flyer. &.- .es-

The new revenue law imposing all
manners and kinds Of taxes and hnes
upon bucket shops, went into effect
April i, but just how much revenue the
law will bring into the national treas
ury Is very much Of a question, says the
Chicago Chronicle. Chief deputy Col
1ector Hemstreet says it is a case of
first catch your bucket Shops like the
old recipe for cooking a hare. In view
of the existing state laws against buck
ct shops. which provide indictments,
anes and other penalties for the pro-
prietors Of such places, it Is extremely
unlikely that any one will step up to the
captains office and report that he is
maintaining a bucket shop There
fore, the new law will result either tt.
extinction of that form of gambling
house or else in extreme activity on the
part of the deputy collectors Of internal
revenue charged with the duty of hunt
ing down the bucket shop and enforce
ing the penalties provided III the new rev.
enue act. j.
A bucket shop in brief, is an i'm ia
ton brokers' office where spectators
bet upon the fluctuations III the prices
of the grain and provisions dealt in upor;
the Board of Trade. There is no pre-
tense of an actual transfer of the com.
modities to any speculator by the pro-
innate brokers' offices. There might be
s1,O00,O0O worth Of business done every
day in bucket shops without affecting
the price Of wheat or corn a hair 3
breadth. just. as the amount Of money
wagered on, a horse at race track
would not affect the value of the horse.
The forms Of "buying'' and selling
wheat, corn or whatever is supposed to
be traded in are retailed in the 'buck-
r. there q transfer
stuff, simply because the proprietor of
the place hasn't any. All he has is
money, like the banker in faro game.
A speculator comes In and "buys'' 10000
bushels of wheat by putting up $10)
for margins. That 81. is. he bets
wheat will not drop in price l cent a
bushel. If it does drop 1 cent before he
desires to quit his 500 is wiped OUT
and goes into the safe of the "bucket
shop" If it goes up half a cent Or
cent the Spectator wins $500 Or 500 and
the proprietor turns it over to him, less
2h per cent commission which is the
rake off" of the house. Of course, 1t is
the difference of opinion In spectators
which makes the game last. Some OF
them at the same time will .'selr' In
stead Of buying-that is, they will bet
that 1t will not go up in price. and when
it does they lose their margins, and so it
goes. Thus the spectators in the 'buc-
ket shops might buy more wheat
than there Is in the country twice over
without affecting the price sixteenth
Of cent, because their transactions are
nowhere recorded and are merely bets on
how the price will fluctuate. Nothing
changes hands except the money wager
ed.
MUST REGISTER LOCATIONS.
Now comes the new internal revenue
a NH nh &I,~4
Establishment shall pay license fee or 500
to the government, shall make a report
to be collector of interest revenue not
only OF the location of it's place Of busi-
ness and the names Of it's employees. but
shall place 2-cent revenue stamp upon
each 500 of value represented in its
trades" issuing slips bearing such
stamps to the customers. The proprie-
tors are required to keep books contain
ing the accounts of every trade with
the name of the Spectator, which shall
be subject to the inspection of the coll
aector of internal revenues at ali times.
And it Is especially provided that the
payment Of these taxes shall in nowise
nu1lify any state laws directed against
this business
That Is where the shoe pinches. mas
much as there Is not only a state law
against bucket shops" but that the law
the criminal court to call lie attention
bucket shop" is out in the bright light
of fame most of the time. If LAe pro-
prietors should make the records requlr-
ed by this new law for the collector they
would virtually plead guilty to j. vio-
lation of the state law, and no one ex-
poets them to do that.
This Is how the section Of the law
applying to "bucket shops" reads: i
WHAT THE LAW SAYS.
3: From and after the LIST day of April.
1901: every person. association, copart-
shall in his, Its or their own behalf or as
agents engage in the business Of making
contracts, agreements, trades or transac-
tons respecting the purchase or sale of
any grain. provisions, raw or manufac-
tured cotton, stock, bonds, or other Sc
curtties wherein both parties thereto or
corporation above named contemplate or
intend that such contracts, agreements.
trades or transactions shall be or may
be closed. adjusted or settled according
quotations at prices made on any board
of trade or exchange upon which the
commodities or securities referred to in
said trades
q bona flde transaction on such board
Of trade or exchange, or wherein both
parties or such person.. association. CO.
partnership or corporation above named
shall contemplate or intend that such
contracts, agreements, trades or transac-
tons shall be or may be deemed closed
or determined when the public market
quotations Of prices made on such board
Of trade or exchange Tor the articles or
securities named in such contracts.
agreements j. or transactions .shan resacn a
certain figure, and every person,
association, copartnership and cor
poration who or which shall
In his or its own behalf
Or as agent conduct what Is commonly
stamp tax of 2 cents on each 500 in value
o" fraction thereof Of the merchandise
covered or pretended to be covered, and
also tax of cents on each 800 on the
face value or fraction thereof OF all
stocks. bonds or other securities covered
all of such contracts, agreements, trades
or transactions; provided, however, that
the payment Of any tax imposed by this
paragraph shall not be held or construed
to exempt any such person, association,
copartnership or corporation from any
penalty or punishment provided by the
laws of any state for carrying on such
business or the making of such contracts.
agreements, trades or transactions within
such state, or in any manner to authorize
such business or the making of any such
contracts, agreements. trades or trans
actions contrary to the laws of such
state or III any place prohibited by muni-
cipal law, and on or before the list day
of April 1901, every person, association.
copartnership or corporation. sas afore-
said, shall for each Office or place Of
business and for each, branch office or
place of business, wherever established,
nay a special tax Of $3.50. and on or be-