The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-03-04
SEVERE
BLOW AT STOCK EXCHANGES
BUCKET SHOPS ARE HELD TO BE
THEIR OFFSPRING.
TRANSACTIONS CONSIDERED VIC.
LATIONs OF LAW. &
Ringing Decision of Judge Thomp.
son In Case of Chicago Board
Of Trade vs.. O'Dell s. Co.
Cincinnati Inquirer.

Cincinnati Inquirer.
Bucket shops are the offspring of the
Chicago board of trade and kindred organlza-
tons. When this species of gambling on the
| commercial and stock exchanges of the coun-
try ceases the bucket shops will disappear,
and not before. - ~
This is the startling statement contained in
an opinion handed down yesterday morning in
the United States circuit court by Judge A. G.
Thompson.
The decision is therefore of intense interest
to business people all over the country. The
case in which he rendered the decision is that
| of the Board of Trade of Chicago. ILL.,, against
the O'Dell Commission company ct al, OF this
city.
The opinion by Judge Thompson is quite
elaborate and erudite. and covers every i'm
portant question in a careful and concise
| manner, and it was pronounced by nearly all
| of the attorneys in the courtroom at the
| time as one OF the ablest decisions handed
down by him.
The case is one where the complainant petit
| toned the court to enjoin the defendants from
| receiving or using it's quotations. The bill
, states that the complainant is a corporation
| organized to maintain commercial exchange;
| that its volume of business is so large that 1t
| has become one OF the greatest grain and
provision markets of the country; that the
quotations of the prices made in these trans
actions have become species OF property OF
great value, and that these quotations are
furnished to telegraph companies who pay
| large sums of money for the privilege OF sell
! ing them to their customers.
! QUOTATIONS FURNISHED UNDER CON-
! =. TRACT. -
| The quotations are furnished to the tele-
| graph companies under contracts, by the
! terms of which these companies agree not to
sell transmit the quotations to any per.
! son, firm or corporation conducting a bucket
| shop OF other similar place where such quo
| tations are used as basis for bets or other
illegal contracts based upon the fluctuations
| Of the prices of the commodities dealt In.
was sought against the o'Dell company,
and that it gets its quotations surreptitiously.
The defendants deny that they conduct a
bucket shop, but admit they procure the
graph 'e companies. Tie defendants claimed
! that these quotations have become public
property, and that the refusal Of the tele-
| violation of the interstate commerce laws.
The defendants further charge that the COM
plainant itself conducts bucket shop.
| Judge Thompson first takes up the question
as to whether not the Chicago Board Of
Trade conducts a bucket shop. He says that
the test Of good faith is whether, when the
and pay for the property so bought, or to De.
liver the property so sold. He says that il
cover Gov for specializing on the fluctuations Of
the markets. it. is Understanding. He fur
Their says that the evidence convincingly
shows that the larger part Of the transactions
in grain and other produce on the Chicago
Exchange are mere gambling transactions,
conducted by some of it's members in viola
shopping, and it remains to be considered
} whether the exchange permits these illegal
transactions on the floor Of its premises.
pr r and that If it permits it cannot es.
cape criminal liability by merely enacting
rules prohibiting such transactions It must
pletey examines the testimony Of the officers
of the exchange, its work and contracts
A MINUTE DISCUSSION.
He also minutely discussed the various
terms used by brokers and how the business il
transacted by the board of trade The evil
dence Of the president of the latter shows that
the transactions in futures are the principal
business Of the exchange, and that cash trans
! actions are comparatively small. Judge
the assumed quantities of the commodities
!. which are represented to be the subject Of
these transactions exceed the entire produc-
/ ton in the United States; that it Is contrary
small percentage OF such dealings could have
been entered into with a bona fde intention
to pay for, or deliver the commodities bought
; or Sold 49, .s-.-
In summing up his opinion, Judge Thomp.
son says: The court finds, therefore, upon
the evidence submitted, that the greater par
| exchange are bucket shopping transactions
and that they are permitted by the com:
, plainant in violation Of the laws Of Illinois, >
TO SUPPRESS THE SMALL FRY.
1t is argued, however, that the public good
will be best served by suppressng the smalle,
the complainant, and reference is made tc
Pomeroy's Equity Jurisprudence volume
IT,, section 941, where it is said that I'm com
policy equity may aid a party equally guilty
with his opponent" but the situation here
does not cali for the application Of that doc.
!, trine. The bucket shops are the offspring o.
: the Chicago Board Of Trade and kindred or.
CARNATIONS, to which they still look for sus
tenance and life, and they they. can only be enee
3 the evil When this species of gambling OF
3 the commercial and stock exchanges. Of thu
l country ceases, the bucket shops will disap
!. MANY applications have been made by thu
| bucket shops to enjoin complainant from de-
priving them Of its quotations, and such ap
! plications have been uniformly refused, upoI
the ground that the courts Of equity will no
lend their aid to carry on an illegal business
nor will they lend their aid to the complain
ant. a place where bucket shopping is per
mitted in violation of the laws of Illinois AM
Ohio.
plainant for a preliminary injunction will b.
8 denied
F. pleased with the decision. He went on to ga.
= that the injunction suit, which has bee1
0 pending since last June, was instigated b,
: only clique of the Chicago Board Of Trade
" center all Of the business in Chicago AM
q shut out all outside OF Chicago. decision
. . was rendered by the supreme court Of I'LL
4 nois some time ago, in which it was held tina
placed upon blackboard, and given out t
the puDnc become pubic property NOIWlCQ
standing this decision, the Chicago Board 0
Trade attempted in numerous suits to pre-
vent the use of its quotations. Suits simila
3 to the above have been filed in othe
cities.
Mr. O'Dell also said that this dickson will
protect the public. because II the Chicag
Board Of Trade had succeeded in getting til
!, injunction 1t would have been able to con
), troll all the outputs Of the quotations an
: might hold back reports.
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0 The nrovarhia7