The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-05-01

| INlIuueIPUld tpHsoIludleu SlOCh IN
change which citizens Of the Quaker
City derisively call the con ex-
| change"
This exchange" the Attorney Cen
/ cral claims to be simply a cover
! maintained to enable operators OF
| cket-shops to conceal the real ma
| lure of their operations" SO he placed
| the case in the hands Of a. Bruce Bic
iaski, special assistant to the Attor.
ney-General He and Chief Finch. OF
the new detective bureau, went to
| work.
Government Tipped the Wires.
They fought the devil with fire They
gathered their evidence against the
bucketsaop barons In the same way
| that the latter gather their quotations
/ from Legitimate brokers-by wire
! tapping.
! Expert telegraphers were employed
in this work. At the same time the
suspects were si,adowed day and night
The camera was also used in gathering
evidence. and while Chief Finch's Sc
cret agents masqueraded as customers
making purchases and sales--the
post Office Inspectors also co-operated
How the raids were all made at the
same minute in each of seven cities
the other morning the reader already
knows.
| Five miliionaires were. caught in the
ret. Most notorious of these is Rich
ard +. Pruesser, who four years ago
shot and killed, in Albany. one MELON
nell. fellow. gambler with whom he
| had dispute. For this he was twice
tried. one jury disagreeing and the
other adiudging him insane. He was
sent up to Harry Thaw's retreat. Mat
ton Nts-lV sa.,1
| than Thaw. and managed to get on,
In i've weeks, and shortly afterward
he was with bucket shop that was
raided IN New York. Two other mil.
/ lionaires caught In the raid are the
brothers Louis and Angelo Celia, noted
from their headquarters In st. Louis to
the Eastern coast, although the net.
work of wires which they operate are
! thickest through Illinois, Iowa, In
diana Ohio and Missouri In St Louis
they established free tracks" to which
passes We're given in the saloons, and
where the very poor We're encoura ged
to make bets in sums of 20 cents and
| a lalf-dollar This business nourished
until the then district attorney and
| present Governor, Joseph Folk. ran
| them out. after threatening to call out
| the militia against them. The two
other indicted millionaires are Leo
Mayer, Il well-kaown booknSker Of
| the race tracks. and George Turner, a
| broker said to have once been expelled
from the New York Stock Exchange.
Turner. when taken in the Philadel-
phia Con" Exchange. suddenly ripped
several pages from a book and tore
them to shreds. but they We're later
patched together by the authorities
Together with these five millionaire
l fy ~ n lay ~ Il
fry were taken in the government nets
Ono OF the three bucketlng concerns
figuring In the business was found to
be taking in $4,000. and the others be-
| tween $4,000 and $4,000, a day, while
each was paying 100000 year for
| leased wire service
What a Bucket-Shop Is.
What a. bucket-shop really Is re-
mains mystery to many good people
| The difference between its methods
and actual buying and selling OF
| stocks on margins was explained some
| time ago by Ogden D. Budd, presiden,
of the Consolidated Stock Exchange o
| New York, when he was in Washing
/! ton In the interest of antibucket-shop
legislation.
I'VE will assume" said he. that q
| customer goes to u legitimate stock
broker and gives an order TO buy lOO
shares OF Reading at l04. The custo-
4 mer may not want TO pay all the
money for that Reading then and
1 there, and take it up, but he deposits
a part payment credit margin
sufficient to satisfy the brokers' re-
| quirenents, and the broker proceeds tc
| fill the order.
How does he do it? He must &C.
| tually so to his exchange and buy tht
stock; there must be a purchase made
or there is no bona tide contract. L
the customer wishes to pay the bal
ance due on the stock he can at on.
time receive the actual certificate from
the broker and have II registered II
his own name: but whether he pays il
| full for 1t or not, or whether TIL,
broker keeps 1t for him, the essentIa
difference between that transaction
and the so-called transactions in buck
! et-shops lies In the fact that In thu
real brokers' Office Bona tide pur
chase OF the stock Is actually mad
I, from some other party, II the purchas
/ or merely puts UP his margin and i
not prepared to take the stock TIL
broker has to supply the money Il
u amount between theycredit or margin
put up by the customer and the pric
Of the stock IL the purchaser neve
\ asks Tor actual 'ueiiNeIy tne pToke
either keeps the stock In his box o
he takes it as collateral to a bnnl
and borrows money on it, or loans
Ito fellow broker
"But In the bucket-shop there is N
actual purchase or sale made; It l
simply a bet on the part Of tho keepe
Of the bucket-shop against or In favo
Il Of the fluctuations Of the market, an
!. money put UP in the hands Of a buck
ct shop keeper by customer Is In n
i, sense OF the word really a credit or
margin 1T is a limited liability on
!, bet" 5s 5<sls
d The legitimate stock exchanges, MI
Budd went on TO eXplain, REQUIRE bro
#ikers to keen a record of persons ffon
whom, each hare Of stock As hopeh