New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-02
TESTIMONY OF EXCHANGES
ConsoIidated's Head Heard by
Jury in Washington.
BIG BOARD PRESIDENT NEXT
Government Determined to Sift
Bucket Shop Evil to the
Bottom.

II became certain yesterday that the
government intends to probe to the bottom
the question Of the bucketShop evil in this
country and also to find out Just what
auxliaries bucketshop operators had and
which they must have had 10 enable then,
&c carry on their business throughout this
entire nation.
r. II Thomas president of the New
York Stock Exchange, was supdnaed by
the federal grand jury in Washington and
will appear before that body on THURSDAY.
Charles II. Badeau, president of the Con
solidated Exchange, testified before the
Washington grand jury on Saturday. g.
". Z. Atkins, vice-president Of the West
ern Union, left for Washington yesterday
to give his testimony before the same
jury He, too, was under subpoena and
will testify to-day.
Mr.. Atkins has charge of the wire leases.
and the Department of Justice is anxious
TO know all about the leases made to the
Standard Stock and Grain Company, Z. 5.
Boggs &, Co and Price & Co. of Baltimore.
Members of each of these three companies
were arrested in the first raid, on April :
last, under The charge of running bucket
shops, An agent of the department at
that time said that the total annual rental
paid the Western Union for leased wires
by these three companies amounted to ap-
proximately 100000.
It is understood that the presidents Of
the New York Stock Exchange and the
Consolidated Stock Exchange we're sub
pcenaed to find out if they could shed any
light upon the way In which the bucket
shops and alleged buCketshops managed 10
get stock quotations with such great ex-
petition
Frank Mdier and Joseph Becker, who
were arrested yesterday. will also appear
before the Washington federal grand jury
tomorrow. 1t was before this grand jury
that the government laid its evidence
against alleged bucketshop operators which
resulted in the bringing of many indict-
ments.
The chief subject of conversation among
brokers and those interested in the stock
market yesterday was the work of the
governments agents in this city on Satur-
day and the stoppage of the ticker service
in the Consolidated Stock Exchange.
Mr.. Badeau. in speaking of the use of
the Maier Geographic stock quotation ser
vice by the Consolidated Exchange, said
yesterday that the exchange never had any
idea and indeed does not now EnoW"
that Maier furnished any bucket shop with
quotations, On the contrary. he Said that
as late as last Monday Maier told him That
he supplied quotations only to memoirs Of
regularly organized exchanges
EARLY in the year the Consolidated Stock
Exchange said he. through its at
torneys. called to the attention of the fed
eral authorities the business methods of q
certain stock exchange in Philadelphia and
connected with that exchange. We also
submitted to the government evidence got
by one of our Representatives, when, to
our minds, clearly indicated the unlawful
business done by these houses. We tc-
leve We were the first to bring to tie
governments attention the necessity Of Int-
ting a stop to the bucket shop business"
Mr. Badeau also said that he had pre-
viousIy leiH this matter before the District
Attorney, but that on account of tho bust
ness being conducted in different states tie
latter had thought it best to refer it tn the
federal government
The Mafer service continued Mr..
Badeau. was started some twenty-five
years ago by the New York Petroleum En-
change, and on the consolidation With the
present exchange was continued. No 9uee-
ton has ever been raised heretofore thst
there was anything surreptitious or irregu-
lar about it. The service costs the Con
solidated Exchange 5000 Il year
He denied euaphaticaIly that the Malcr
service WGg ! fast one, and said that. IN
fact it WAS slower than the ticker SnrVlne
on the floor. Witness tho fact he OK
claimed, that our floor rules prohibit run
ming to the ticker. 1t IS Self-evident that
were the Maier service faster there would
BE- no incentive to run to the t:cl1ers from
the various trading posts. and hence 10