Milford chronicle., 1904-06-10
WHAT is A BUCKET sHoPf
brokerage Omce where Orders Are
Never Executed.

A brokerage Omce where Orders are
Never Executed.
President Pomroy's announcement on
assuming the presidency Of the New
York stock Exchange recently that
the governors were determined 70
maintain a high standard of business
honor and discipline members guilty
of Illicit practices, together with the
exposure. failure and prosecution oil
concerns forced out of the Consohdaleu
exchange on charges Of "bucSeung'
has attracted wide attention. Nearly
every prominent bank in the an
street district has been written 10 oy
opvions customers Of concerns whose
husiness methods resemble those toi-
lowed bv the firms exposed. Such sus-
nicions in many cases nave ueen
,,roupdIpss but the distrust has beeh
universal. with the result that the pusl-
ness of many reputable oroNer"Se
houses has been seriously intertereu
with This has led to the question
being asked generally, What is PUCK
Of shop? The query has been put oS
doctors. lawyers. merchants ana man!
other private parties unfamillar VIII
the Wall street routine.
In general, it may be SAID that
bucket shop is a brokerage ONCE Wnel'
orders are never executed ana ll'
funds of customers are fraudulehu'
concentrated. one of the most sue
cessful New York bucket shops mas a.
extensive suit of offices, fitted up VII
. all the paraphernalia of STOCK EN
! change house. Operatives appear [
he receiving dispatches over prlVa'
+ v-ires and a score of clerks are ous
hosting quotations on the oulieu
+ hoard The rooms are always uile'
and the Office does a very heavy pus
l. ness But the wires do not 20 outsll
/ tbe building at all. leading only 10
II basement room. from which dispatch'
are sent and the fake scheme ulrec'e
An +be business is done on one
two point margin, no one being allo'
ed to nut up more than five points
D that wav n variety of small custome
are reached. who deposit $40 So
n S5O as the case may be. II nan
n dozen persons buy Union Paclnc at
J. on a one point margin, the manager
tho office gives the signal for
lie +itions quotation of 81. That VII
IS ont tho contingent. and the office "ou'
i3. cts" the proceeds, which some1lu
tn anount TO as much as $4,000 or -
de GOO in n single stock. In cases Wh
M fictitious quotations are not possi'
the more wealthy bucket shop Il
ms clrb together and depress values
m the regular Stock Exchange TO pc
ed whore their customers margin
ra- comes exhausted They may sp'
ain $4,000 in doing this, but where
out oral hundred thousand shares are
volved their relative profits are el
no' nous ,,4, -.
rly dov where one rich man who was
len N los Angeles by his physician
the ronqod with his New York broke
'ter wire on quotations of the prime
run stocks every hour He noticed,
re- over that it was n daily custom Tor
ZEN (-,,os+s o+ the hotel where lie was
ID Ming TO visit a large brokerage
to which displayed huge bulletin DO
De showing the movements OF NaI
in shares. The office was eXpensi
rom eouipped and appeared to do u
inc business. The visitor soon op'
ines ad however that the quotations
then fored widely from those sent on
nta- his New York agent. and suspe'
be- tbot something was wrong. he lei
men, structions at the hotel to nave
'nta- messages sent him at the broher
d Of fee as soon as received. inns
Gel done and he Immediately disco'
thot the quotations displayed Oh
bulletin board were fictitious ana
notrons of the firm were being sy
time atically robbed. The concern W
own buczet shop and received enor
mites revenues by bucketing the funds
IN in cretomers. who were swindled o
y llie their margins.
er in Tn this way the bucket shop al
took wins. except in a continually
an to stock market, where some con
have been forced to the wall. Ih'
2 yet lic as a rule only buys for an adv
n fine and never sells stock short.-NeW
= Post.