Peninsula enterprise. [volume] (Accomac, Va.) 1881-1965, 1905-02-11
WHAT is A BUCKET SHOPf
brokerage Omce Where Orders Arc
Never Executed.


Never Executed.
President Pomroy's announcement on
assuming the presidency Of the New
York Stock Exchange recently that
tho governors were determined TO
maintain a high standard of business
honor and discipline members guilty
OF Illicit practices, together WIN the
EXPOSURE, failure and prosecution OF
CONCERNS forced out OF the Consondateu
exchange on charges of "buckeung,
has attracted wide attention. Nearly |
everv prominent bank in the wan
street district has been written TO by
anxious customers OF concerns whose
business methods resemble those loi-
lowed by the firms exposed. Such sus-
melons in many cases have been
groundless but the distrust has been
universal, with the result that the pusl-
ness of many reputable brokerage
houses has been seriously interfereu
with This has led to the question
being asked generally, What is DUCK
Of shop? The query has been put by
doctors, lawyers, merchants ana many
other private parties unfamiliar Win
the Wall street routine.
In general, it may be said that
bucket shop is a brokerage Office where
orders are neveE executed and the
funds of customers are frauduiehtiy
onnronriated. One of the most sue
cessful New York bucket shops has an
extensive suit of offices, fitted up with
all the paraphernalia of Stock Tx
change house. Operatives appear 10
he receiving dispatches over private
vires and score Of clerks are busy
posting quotations on the Dulieun
hoard The rooms are always nlleu'
and the Office does a very heavy busl-
ness. But the wires do not 90 outside
fine building at all, leading only to
basement room, from which dispatches
are sent and the fake scheme directed
All the business is done on a one OF
two point margin no one being allow
ed TO put up more than five points. In
that way a variety Of small customers
are reached, who deposit $40, $2O OF
$50 as the case may be. III halI
dozen persons buy Union Pacific at 81
ON a one point margin, the manager Oh
the office gives the signal for a hc-
titious quotation of SO. That wipes
ont the contingent, and the office DUCK
offs" the proceeds which sometlmes
amount to as much as $4,000 or Slo'
OOO in a single stock. In cases where
fictitious quotations are not possible
the more wealthy bucket shop mel
Climb together and depress values OF
the regular Stock Exchange to pom
. where their customers margin be
3 comes exhausted They may spenC
$4,000 in doing this, but where sew
eral hundred thousand shares are IN
yolyed their relative profits are enor
nous.
An interesting story was told the othe
= day where one rich man who was sen
+ 70 Los Angeles by his physician ar
q ranged with his New York broker L
e } wire on quotations Of the principa
stocks every hour. He noticed, no"
ever that it was daily custom for III
: guests at the hotel where he was STOP
I ming TO visit large bro. rage ono
Il which displayed huge bulleLn Doaru
showing the movements OF Variou
s. shares. The office was expensivel
) eouipped and appeared to do thrl'
J. inc business. The visitor soon oOserN
J. ed. however, that the quotations Oil
fered widely from those sent out
his New York agent, and suspectln
Y that something was wrong. he lett II
structions at the hotel to have I'll
10 messages sent him at the brokers'
fee as soon as received. This Wa
IN done. and he Immediately discovere
u that the quotations displayed on u
As hulletin board were fictitious ana I'LL
III patrons of the firm were being system
E" atically robbed. The concern was
IL bucket shop and received enormol
as revenues by bucketing the funds OF
'r. customers. who were swindled out
their margins.
e. In this way the bucket shop aiWa'
'n' wins. except in a continually risii
he stock market, where some concern
ne have been forced to the wall. Inc pu
n lie as a rule only buys for an advanC
Is and never sells stock short.-NeW 10
- Post.