The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-05-16
Term Bucket Shop" Coined.

board (Which was not justifedJ and to the coin
Ing OF the word which was afterward universally
don, and Henry Linsden, the proprietor of the
BUFFET. + - = -. -
How Bucket Shops Operate.
The expression, of course, referred to the
system just being introduced by certain specu-
lators, which became the planrof the bucket shop
operators afterward of taking bets on the stock
and grain quotations, retaining a. percentage of
each amount placed with them, but never .contem-
plating any delivery, the entire transaction being
closed out on quotations. Thus a man would
go in and order thousand bushels Of wheat
at say IS cents, putting up $40. The bucket
shop Immediately deducted from this the sum Of
one eighth OF i per cent as a commission, and
If wheat went to "a cents the Spectator would
receive his remaining $S.75 back, together with
$40 winnings. II. on the contrary, the market
feli to ~ cents, the Spectator was wiped out
lost his bet. That was all there was to it.
The bucket shops never placed any orders with
the exchanges, and there they differed from the
stock jobbers of the present who are often called
bucket shop men. The stock jobber is man
who takes number of small orders from his
customers, orders which individually are too
small to- be filled by the stock exchanges and
places an order for the aggregate with a stock
broker in his own name; parceltng out the pur-
chase among his customers. The stock jobber
must place his orders The bucket shop man did
not, but simply conducted guessing contest on
business Operation than are the interesting trans
actions over the faro table 49, yi{.s-l-5s5 5
"a Modern ssindustry., 3s
But to go back ta the bucket shops. The
hrst bucket shop in milwaukee, started2in
the ne, Iron block. and was known as Peacock
cock became involved ain some litigation, he was
defended by young lawyer of some prominence
by othe name OF. Jenkins, who referred to the
bucket shop as 'one Of Milwaukees modern In
jdustries.' * IA F3-.si.7 f
But was talking about the term which
!Pieronette used when Lincoln asked for the loan
Lincoln rather insisted that he should be obliged
with it and finally Pieronette let him have the
money, and Lincoln went. over on the open board
OF trade and commenced to gamble on wheat
There was a rising market and in a few weeks
Lincoln had cleaned up $15, 900, and then really
did start the first bucket shop on earth known
as the Metropolitan Grain and Stock Exchange,
In In, The old alley off from Riley, Murphy and
puisifers po 20 The firm retired in two
the interests of what was known as the public
The more modern term would be the mindless
multitude Lincoln failed afterward, and the
place came into the possession. of Pope Loring &
Coz known as the notorious Fund W.
The Shops Grow Apace.
After: that bucket shops grew apace. and
the term spilled to them by Pieronette became
the regular name for them. The next big one
was Edward Lichenstern's, who was at one time
board OF Trade building there were at one time
more M bucket shops than there ever were in the
r1 5adn Ths and
was good deal cheaper to go into a bucket
shop and buy thousand bushels Of wheat than
It was as, to go to South Dakota and buy farm
and raise It, - continued Mr.. Doyle, with a hui
morous twinkle in his eye.
But the bucket shop men must not be CON
demned too sweepingly. There were many good
fellows among thsmTh real condemnation
where there was then more bucket shopping than
there was anywhere else on earth.
Distinction as to Stock Jobbers.
so don't say bucket shop when you mean
stock jobber, said Mr.. Doyle. The terms are
not synonymous mon In London, Throckmorton
street, Threadneedle street and Capel court are
honeycombed with stock jobbers and stock brok-
ers stock broker is of course, a man who
noids membership on one of the exchanges.
explained before, will buy lot of stock in his
own name through broker and deliver it in Job
lots to his customers. It IS needless to state
that the old Lady Of INTERCHANGEABLE strret,
makes no distinction between the accounts OF job
bers and brokers In point Of desirahility
!, This state Of affairs, eIisting,. and bucket
jobbers would be futile and for wisconsin or
any other state to try to prove illegftiate trad
Ing against them would bankrupt the state It
has been decided by the Chicago Board OF Trade
OF wheat or $50 tierces of lard, and to divide it
among five customers. 5st
Proposed Law Ineffectlve.
The proposed law in this state is unconstitu-
tiona1 in two Of Its clauses. One, where it re-
quires a legitimate broker to expose his books
or else be classed as a 1obber. a brokers bust
ness Is profession, and his dealings with his
customers are as much professional secrets as
are the transaction of doctors and lawyers The
other clause is the one prohi ting the sending
of orders from one state to another, which VIC
lates the Interstate commerce law.
For these reasons, believe, the law offered
at Madison would be a total failure, and in the
event of It's passage 1t will not stand the test
Of. the courts. But that's all you can expect
from q bunch of legislators who don't know the
difference between No. 1 hard and Kansas screen.
ings and who are trying to make railroad legis.
| lation when they can't really tell box car from
a Scranton wheelbarrow.S 81
However, this has really nothing to do with
the origin Of the bucket shop, and have to &c
tered away, leaving the brokers to think over
the difference between "a real .old-time buck eli
shop and the present semi-legalized concerns
known as stock jobbers. 81 FEC