Daily Arizona silver belt., 1907-07-09
@s75s=s s:77 Rsf* FIRST NATIONAL BANK OF GLOBE =s
BUCKET SHOP LAW
 PUTS BROKER OUT
A. J. King & Go. of Fl Paso Forced to Quit Business Owing to Stringent Provisions of New Texas Statutes Telegraph Companies Amenable.

The "bucket shop" law passed by the last session of the state legislature goes into effect next Friday, July l2. The brokerage firm of A. J. King X Co. of Fl Paso practically closed all busi- ness Saturday and the remaining days of this week will be given over only to transactions in few limited stocks in which the company has accounts, which will be closed out during the four days of this week and the brokerage firm will cease to exist in this city.
 After last Saturday no wire quota with the telegraph company for the pri- vate wire was cancelled on that date and the operator released, says the Fl Paso Times No more orders will be received at the brokerage office and the business for the next four days will be closing out accounts in number of stocks, bonds and provisions that are still on the books of the company.
 The new law is very sweeping in its provisions and stringent in its penalties.
 A "bucket shop" is defined by the terms of the law as "any place where dealings in futures is carried on con. trary to the provisions of this act. v Dealings in futures' is defined as "sale or purchase or contract to sell or purchase or any offer to sell or purchase any cotton, grain, meat, lard or any stocks or bonds of any corporation to be delivered in the future when it was not the bona fide intention of the party being prosecuted under this act at the time of such sale, contract, purchase or offer to sell or purchase, was made that the thing mentioned in such transaction should be delivered and paid for as specified in such transaction.
 The law then defines two other phases of future" contract. One is where one person offers to another any stock, bond, provisions, or any other commod- ity whatsoever when it was the intent or purpose of the person making such contract to complete delivery simply by the payment of marg in by one party or the other to the contract.
 Another construction of future is any contract made on a board of trade for future delivery where the rules of such board of trade or exchange permit of the closing of an account without the actual delivery of the com modity contracted for and the payment for the same in cash or it's equivalent.
 The penalty for any person to direct ly or indirectly carry on the business of "bucket shop" is two years in the penitentiary.
 If any person, owner, agent or other person in control of a piece of prop erty shall knowingly rent or lease such property for the business of bucket shop, he shall become party to the of. fense and be subject to a fine of from $100 to $2,000 and confinement in the county jail for not less than one nor more than six months.
 If any person shall act or offer to act as the agent or broker of any other per. SC in making or offering to make any fl ture contract he is subjected to a fl le of from $100 to $2,000 and in addi on confinement in the county jail foi period of from one to six months.
 The person making or offering to make for himself any future contract he is subjected to fine of from $loC to $500 and confinement in the county jail from ten to thirty days, unless il can be shown by the defense that tho transaction was "hedging' contract executed between party in this state and party or parties without the state and it must be shown that the transac tion was consummated by the party himself delivering the telegram to any telegraph or telephone company and no by any broker or agent.
 If a telegraph or telephone company or any agent of such company shal allow any bucket shop to use its wirei or instruments for receiving stock oi commodity quotations for the purpos' of conducting bucket shop as defined the telegraph or telephone company il made a party to the offense and is sub iected to a fine of from $l00 to 1000
 In every offense cited in the act ever, day of violation shall constitute sep arate offense and shall be prosecuted as separate offense.