New-York tribune., 1901-03-30
BUCKET SHOP MEN SCARED.
NEW AMENDMENT TO THE WAR REvE-
ME- LAWS THOUGHT BY SOME TO
MEAN THEIR EXTINCTION.

Wall Street began to believe yesterday that
the bucket shops are doomed to extinction by
the Act Of Congress of March .. amending the
war revenue laws. The Office Of Charles H.
Treat. the Collector of Internal Revenue for the
Second District Of New-York. was haunted all
day by lawyers representing prOprietors or
bucket shops and the lawyers wanted informa-
tion as 10 the manner in which the law was 70
be enforced. Collector Treat said the law was to
be enforced according TO regulations issued by
the Commissioner of Internal Revenue for the
collection of the tax. The lawyers said that the
keepers Of bucket shops were placed in the po-
sition OF having 10 violate the internal revenue
laws or confess that they violate the laws Of
New-York State in regard 10 gambling or go
out of business.
''T'he new law" Collector Treat said yesterday
TO Tribune reporter. goes into effect on April
l SO far as TO authorize the collection OF So 30
from each bucket shop. That sum is 10 be coll
Iected for the quarter running 10 July /, when
other provisions of the law go into effect After
July each bucket shop must pay an annual tax
Of $50 and a special tax of $50 and must use the
documentary stamps in the payment OF two
cents on each 500 Of alleged transactions. Each
bucket shop keeper must keep books in which
all transactions are recorded. and the books are
10 be open TO the inspection Of the revenue Off
GERS"
Are the bucket shop keepers showing any op
position to the enforcement Of the law?" was
asked.
why" Mr.. Treat replied. they are sending
lawyers 10 ask how the law is to be enforced.
and I understand that they object to making
application for licenses provided by the law.
An application for license broker No. Will
be a virtual confession that the broker carries
on a purely speculative business, without any
delivery of stocks and that his dealings with
customers are settled on the basis Of market
quotations without bone fde transactions in
stocks If the brokers make such declarations
they admit criminalty under the State law
against gambling. So it seems that the bucket
sbop keepers must either disobey the Internal
Revenue law or the law OF the state or go out
How is the new law to be enforced?"
1T will be enforced according to Instructions
issued by the Commissioner of Internal Revenue.
The commissioner is concerned only in the mat
ter of collecting the tax The law contains a
provision that the payment of the tax shall not
exempt any person from penalty or punishment
provided by the laws Of the State for carrying
on the bucket shop business"
What provision is there for the enforcement
Of the law?"
The brokers are obliged to make returns TO
the Collector of Internal Revenue. and failure
to comply with the law in that respect is made a
misdemeanor punishable by a fine OF not less
than $500 and not more than $1,000 or impris-
onment for not less than three months and not
more than years both. 1t will be a seri-
Gus matter for brokers to violate the law and
am assured that the law is TO be enforced vlgor-
ousy.'
Apparently the new law is designed to drive
| the bucket shops out of existence?"
1t certainly does not seem to be intended for
| their benefit
Many of the purely speculative operators in
Wall Street who have been saying that the law
| yers would find some way OF evading the new
| law were becoming alarmed yesterday. Some of
them will close up their offices on Monday and
| wait until there is a change in the law before
| resuming business.