New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1901-05-15
TO TEST BUCKET SHOP LAW
INTERNAL REVENUE OFFICERS WILL
TAKE THE NEW AMENDMENT
TO THE COURTS.

The clause in the amended War Revenue law
imposing a special tax on bucket shops and re-
quirng them to register Is likely to be tested in
the courts Commissioner Yerkes il is under
stood. is to take this course TO obtain a ruling
points raised by certain of the brokers liable
TO registration The bucket shop men have In
many instances adopted subterfuges.
They have endeavored to make the forms
under which they do business meet the require
ments of the law whereby they may be classed
as regular stock brokers. making bonafde de-
liveries. Some of them have devised form of
contract under which the Spectator simply buys
and sells on the instalment plan intending to
bring the transaction under the operation of the
contract law and legalize 1t.
One bucket shop firm has devised the following
order forms and contracts:
BUYING ORDER AND CONTRACT.
New-York. , 1870.
Please buy for me from yourself or another - -
shares Of stock should the price In the open
: signature of customcr)
This memorandum witnesseth.
WI MI CIV INA name h Of customer street New,
the address aforesaid. = shares OF the common
1Eef q the sne said Thfh he 5 nas 20
named s sad sum OF per share therefor and
said stock In the open market shall have declined
said = !clstomer) has paid to - Cbroker,.
s ss & b g TsGept Of h. wnsh is
70 forfeit absolutely to the said sun (broker5
should he fail to tender pay the balance due
In consideration OF the forfeiture clause Of thi,
contract said - (brokerl hereby aagrees to re-
or liability on him under this contract other than
Done this - day of -. A. D. 1901
1s;-( signature Of brOker>
SELLING ORDER AND CONTRACT.
tQn
- Name of brokero
Please n sell FOR me TO Yourself o., or another fI
the open market rise TO S per share.
signature Of customer)
This memorandum witnesseth.
Mr.. --- (custoner). -- street. New-York City.
has sold to and hereby contracts and binds himself
New-York City "" shares s. Of the common stock
Of sd 5Rs per r share to deliver
said certificate to said - (broker) before the
value Of said stock in the open market shall have
As guarantee 2, to said - SToHeR Of the deliy-
toner within the time and terms of this contract.
said --- customer has deposited with said -
hereby acRnovi lodged. which said sum he hereby
eS n 10 no G' 10 T 10 said ceTa
within the time and terms Of this contract y,
said deposit and 10 pay unto the said . 'ous-
toner the sum OF s. per share for the - -
him within the terms and time of this contract
In consideration Of the forfeiture clause Of this
said - customer from any further claim liza
hility him under this contract other than the
forfeiture OF said moneys deposited
Done this - day OF a. D. 1901
signature OF brOIer)
signature Of Customer)
Collector Treat said yesterday that he had
been collecting evidence against the bucket shop
firms for some time hut would not say when
he would use 10. II was said that. IL necessary
10 do so In OrCer to collect the tax. the Internal
Revenue officers would demand to see the books
OF suspected brokers.
The brokers 10 not seem to be worried about
this. They say that their legal al vlsers have
Informed them that they not obliged 70
disclose transactions 10y the hooks. because
law could oblige them to iuCrimiuate themselves
either orally by evidence sought to be oh
tanned through examination OF their record
They believed they We're paying the govern
ment all the tax the law required. and We're
willing 20 submit the question involved TO the
courts.