The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-02-10
Hard to Spot Which is
the Bucket Shop.
An Expert From Chicago and Char
Iotte Attorney Speak For the
So Called Legitimate"
Houses.
Houses.

of two addresses before the House
Judiciary Committee yesterday after
noon. following the presentation of ar
amendment to any law passed about
these that has for its purpose the
non-application of an expulsion law &c
branches which are agencies OF mem
| bers of regular exchanges. The mat
| ter went over for tutur'. action on the
| bills
Mr.. T. c. Guthrie. of Charlotte, APP
| peared as an attorney for certain SPOT
cotton buyers, Adams Grain and Pro
vision Co, and several of the cotton
| factories of Charlotte and Mr.. John
! HE Jr., of Chicago, on The part Of
Ware & Leland. brokers. of New / DIRK,
| Chicago, &c. Mr.. Hill explained that
he is an expert with the Chicago Board
of Trade engaged in running down and
| investigating frauds by bucket shop
wire tappers and such like frauds. He
is also the author. of Gold tricks of
! Speculation.
The debate in the committee lar@o-
| ly tended to finding out the difference
| between legitimate trading, so named,
| and the bucket shops. AS III" eN-
| planat ons were made il appeared that
| the distinction is that the bucket shops
are places where deals are made ON
margins held exactly to gamble on flu
| lures without any real buying or sell
| ing, and are irresponsible dealers, not
| connected with big exchanges. and that
the legitimate houses are really con-
| nectcd with the big exchanges, deals
| being made on the floor OF these. AS
to the results to the party dealing
| with these no difference seemed to
appear except that the Big houses are
| stronger financially with operations
| Open but that man may gamble or
| speculate in both.
Nh. Guthrie held that men really
! dealing i'm real articles would be hurt
! by legislation proposed and argued
| against any bin which would pat out
of business in North Carolina any OF
! the sO-called legitimate brokerage
houses, that it would be a''vain IN nl,'
for the Legislature to attempt 10 keep
men from dealing with New York in
futures. this over the wires. that the
spending of this money should ne III
the State He held that the Legisla-
turc should not attempt To become
guardians for the public. but should
use conmor sense, that he would not
be surprised il the people who dealt
with the legitimate houses were rot
able to better take care of themselves
than the Legislature was able To do for
them. He declared 18th fervor for
the brokerage houses with connections
with big exchanges, and explained that
the bucket shop" business is myth
cal. while the legitimates are the real
thing. even though they speculate. HIS
argument was that il was a good thing
for the little fellow who went into Il
So 900 deal on 500 to lose this, that
the Legislature had gone too far afield
in the matter of purifying the morals
of people.
The amendment which Mr.. Guthrie
wants tackled on 10 the bill OF Mr..
Stewart or any other bill is that ii
shall not affect brokerage houses con-
nected with the New York Stock. Cos
tor or Produce Exchange, the Chicago
Board of Trade. the Galveston Cotton
Exchange, tho New Orleans Cotton or
Stock Exchange, or the duly accredi
ted representative of such member and
whose transactions are actually eXecu-
ted on such exchange. all required IL
censeS TO be paid.
Mr.. John Hill, Jr., of Chicago, who
was introduced by Mr.. c. NJ. Busbee
as a man who for twenty years had
been lighting bucket shops, next spoke.
| He began with u h stOrical disqusition
on brokerage and speculation and re-
viewed national legislation. reading
from Congressional reports as to
whether speculation is or is not
good thing. The committee was So
ceedcd. Later Nj. HUI proceeded to
explain Che difference between a buck
ct shop and the legitimate exchange
shop, this that the bucket shop is
not really an agent, but Is beth acting
as agent and principal really handling
q bet and acting clearly illegally, while
the legitimate concern actually trans
acts business on ;he floor OF IN ak
change. He admitted that it is u hard
~, Of 11i. RI fatl 40 a
between a bucket shop and the real
thing, unless q man is Experienced.
Sometimes legitimate houses so into a
bucket shop business and if caught
they lose membership on the exchange.
To tell the real from the spurious it
would be necessary to nave tritusac-
tons verified at the exchanges In
response 10 questions from Nj. Stew
art he said he would favor u law
making it obligatory for houses to fur
niSh reports to solicitors when de-
manded, failure to furnish TO be pri1nd
facie evidence of fraud. AS to Specu
| lation he neld that the volume has
materially decreased in the past ten
years, this not because OF legislation
as there is no law in North Carolina
| to prevent speculation. He favored leg
| islation that would compel legitimate
! houses to file evidence of their con-
nection with genuine exchange houses
and To make statements under oath Of
| transactions with necessary machin-
| cry to have these Investigated. In
closing ne detailed at length the va
rious methods in force in legitimate
and Illegal houses handling dealings in
| futures.
! The Senate bill OF Mr.. Stubs. OF
| Martin, TO protect sheriffs who have
prosecuted or may prosecuate persons
| for failure to pay certain taxes inn
| posed by the General Assembly, which
many have been or may hereafter be
| declared unconstitutional was ordered
reported favorably This is to
save from prosecution such officers as
make arrests in good faith under the
| laws of the General Assembly provd-
ing for special licenses or taxes on
various trades or professions.
The bill Of Mr.. Gayle. Of Halifax, to
| have all fines levied against defend
ants IN criminal actions ry the mayor
end justices of the peace of Scotland
Neck township be paid to the fund
| for the Scotland Neck graded school
was ordered reported without preju.
dice. The bill has been rerorted
once by the Committee on ,c8 AuH
with ali unfavorablc report, aGs With
L