New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-04-03

Price & Co. cover the Southern territory.
They have leased wires extending from
Baltimore TO Jacksonville and far west
as St. Louis. Boggs & Co. operate mainly
in Massachusetts. Connecticut. New York.
. Pennsylvania. New Jersey and West Vir-
ginia while the field covered by the Stand
ard Stock and Grain Company includes
Maryland, New York, New Jersey and
Pennsylvania.
Many Smaller Concerns.
Besides these there are, of course, nu-
merous smaller companies. Price & Co.
have I10O0 miles of leased wires and they
practically constitute what is known as
the Consolidated Stock Exchange Of Phila-
delphia, which is a fake exchange. and is
generally called in Philadelphia the con
exchange
Evidence was hard 10 get against these
firms until finally the special agents con-
ceived the idea OF beating the devil at
his own game They employed a number
of expert wire mechanics TO tap the wires
of the companies for them. and for days
they made verbatim accounts of everything
that passed over them. This was the move
that the agents believe won the game for
them and which resulted in giving them
3
in Washington handed down twenty-nlne
indictments. with more 10 come
Here is the special agents account Of how
the bucket shops played the heads-i-win-
tails-you-lose game:
The customer stood no show to win al
all Instead he was sure to lose. In the
first place each office was equipped with a
regular stock ticker, which printed the quo
tations of the New YoTg Stock Exchange
as they occurred. But the ticker service IS
slow. and the bucket shop men founo ouo
that by putting in a special WIRE ON
from New York into their of11ces I"eS
could beat the ticker service by nitee"
minutes Now, suppose i am Cus'Oii'
T enter their office, see the quotations
nosted on the board. and buy ten snoi es
Of Southern Pacific, which is quoted at
sav- 100. They find by their speclaI ware
that the stock has gone down OUTING 'i.e
fifteen minutes They take my order' ano'
Of course. ! lose. If they find 1t mas gone
nm they make a bluff at accepting the
order. but after an hour or so Ten NE
that they were unable TO execute IL
Orders on Per Cent Margin
These companies will buy or sell for
,-of, on > per cent margin which no rep
r,abIe house will do. They all claim tha'
,beir orders are executed on the Consoh-
dated Stock Exchange of Philaoeiphla- ou'
that is a dummy. They take your oroer
and that IS an end TO ii unless you lhsls'
uron the stock being delivered 10 you III
/ which case they get regular STOCK eK-
/ change firm 20 execute il for them, othef-
wise the orders are never executed
AT the same time they charge their Gus
! toners interest on the money they are sup
nosed TO borrow 10 execute margin ORDERS
! A. the stock is not bought these loans are
! ~ course absolutely fictitious, and we nope
thar this feature OF the business MAY leao
! "a indictments for larceny or grand larceny
A matter of fact, clearance house sheets
,-e ,,ranared al the Consolidated Exchange
g pt;1adelpllia. but the names given after
the transactions are entirely fictitious
The agent said that by tapping the wires
3 of Roggs & Co. they succeeded IN gettlne
absolute records of that FIRMS business 1oI
every purchase has 10 be wired IN IRON
the branches to the main office. IheS
found. he said. that the company was doins
daily business of from twenty thou
sand TO fifty thousand shares, and tha'
o. nor cent of this was in ten share lots
That meant two thousand 10 five thousand
transactions daily and yet the records
J showed
1 than one hundred daily, clearly indicating
that the others were "bucketed
The loss OF he customers of Boggs q
60 amounted TO about s5,eo0 daily ht
said
/ OF the Consolidated Stock Exchange o.
/ Philadelphia the agent said:
This exchange was chartered under the
! laws of PENNSYLVANIA in 1902. Originally the
real object of the exchange was TO fur
nieb and make a fictitious market fol
! certain visionary mining companies, il
which the founders of the exchange
we're Interested. Many mining swindles
were pulled off in this way and hundreds
of thousands of dollars were swindlec
out Of unsuspecting investors. The prin
| cipal managers OF the exchange abou
I the time Of its organization were lisEder
I and Inderhill, whose regulations for shady
/ financial transactions are well known
| Among the original members Of the con
/ Germ and associated with Hayden and Tn
| d,.rhiu in the imitation Of wildcat mining
! stocks. We're William IL. McNutt. j. b
Kellogg. Larry Symmetrical and J. Hunt
| ington Davis. notorious swindlers and con
! ddence men. three Of whom are now serv
ing terms in the penitentiary
Later the control OF the exchange
! passed into the hands of notorious bucket
shop concern, known as Haght * Freese
| After having experienced considerable
trouble on account OF the fact that nc
bonding company would bond their treas
urer, and after having been elected from
. their rooms IN the Bourse Building and
Moods Building In Philadelphia before this
! expiration Of their leases. on the ground
that they were undesirable tenants. ths
! exchange is now located at No. 40 walnut
street They occupy a large room. perhaps