Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-05-02
Grand Jury Investigating Mar
rim Fast Wire Service.
PROBE TO WESTERN UNION
Vice President Atkins Questioned as
to Leased Wires.
OBJECTS TO JUDICIAL ROLE
Company Doesn't Want to Pass On
Legality Of Business of
Customers.

G. w f. Atkins vice president of the
Western Union Telegraph Company, hav-
ing charge of the leased wire service OF
the company. testified before the grand
/ jury today in the federal investigation o.
bucket shops and bucketing. Mr.. Atkins
was called for tie purpose Of explaining
to the grand jury what connection, j.
any. his company had with the Marin
fast wire service 20 alleged bucket shops.
which was interfered with by the police
last Saturday
The government claims that sec
ton of the new penal Gods places on
wire companies the responsibility OF
knowing to what use their leased wires
are being placed. The Western Union.
ii is said. has an exclusive contract
with the New York Stock Exchange
for the dissemination of quotations.
but the exchange itself furnishes to
members only below Chambers street an
official quotation service by ticker.
Scheme to Prevent Leaks.
While leaks are possible from this
source, by some individual having ac-
cess to an office of a member and noting
quotations. the likelihood OF leaks is
reduced to a minimum by the vigilance
of the exchange through use of manu-
factured quotations as test.
The elimination of this method of
leaks led the investigators to the Opin-
ion that the bucket shops must be Sc
curing the quotations either directly
from the Western Union or from some
tap on the company'S wires.
The success of the bucket shop busI-
ness. the governments investigators
claim. depended on a fast wire service,
regular ticker. BY this means. they
claim, the bucket shop operators knew
in advance the trend of the market by
one or more quotations, and that they
The victims had no chance whatever,
according to the governments experts.
W. E. Bishop. official investigator OF
the New York exchange, is expected TO
appear tomorrow and explain at length
to the grand jury how the quotatfOns
are disseminated. to show the necessity
Of relays of messages and the poSslblll-
ty of the Marin company. by direct
wire beating the ticker service into
the offices of alleged bucket shops. He
Is also expected to tell OF the hunt for
leaks conducted by him.
Imposes judicial Function.
The Western Union Company, IT was
explaine1 by an official Of the company
today. has no means OF knowing when
application for service is made whether
the applicant is about to conduct a
legitimate business. The section of the
code. he said. imposed judicial function
on the company to decide whether or not
the subscriber was conducting bucket
shop He expressed the opinion that such
attempted delega on OF Judicial power
was UNCONSTITUTIONAL.
CONTINUING. lie explained tina: the Chi
caso Board OF Trade reserved the right to
pass on all applications for wire service,
and thus saved the company the RESPONSE
HI ~ of fire
pointed out how unauthorized use might
be made of the information by subscrib-
ers. without any knowledge Of 1t reach
ing the company.
responded to all requests Of the gov
ernment's experts for information.
Defenders OF the marine service are
not wanting. Charles II. Baden chair
Consolidated Stock Exchange. is reported
to have expressed the belief that the
service is come by honestly.
Early in the Crusade.
Early in the year.. he said, the
Consolidated Stock Exchange. through
its attorneys. Sullivan a. Cromwell, called
to the attention of the federal authori-
ties the business methods of a certa in
| stock exchange located in Philadelphia
and of so-calIed brokerage houses con-
! nected with that exchange. We also at
| the same time submitted to the govern
ment certain evidence procured by one
| of orr representatives. which evidence
| to our minds clearly showed the unla wful
nature of the business transacted by
| those So-called brokerage houses.
This was before the present crusade
| against the bucket shops, and We believe
| that We were the first to bring to the
governments attention the necessity of
putting a stop to the bucket shop bust
ness"