Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-03-30

bucketng'' in the preceding section. He
says: Let Ii then be assumed that the
sections do not penalize generally the
making OF contracts. but penalize only
such contracts as are In the definitions
OF bucketing which are in three sub
divisions, in each of which the intention
OF the keeper determines the lawleSsress
Of the contract independent Of the good
faith OF the other party to the agree
lnent. I'm other words. no matter how
innocent may be the customer of any
desire to speculate in margins, no matter
how far from his mind willingness to
deal in margins. no matter indeed that
he may oppose that practice and intend
TO buy outright and secure a delivery or
commodities or securities in good faith,
Vet If the keeper secretly and silently
and unknown to him, intends that the
transaction shall eventually be metamor-
phosed into one OF margin. the other and
innocent party Is necessarily penalized.
The court In directing that the demur-
rer OF the defendants be sustained re-
marks:
The court must conclude that the
phraSeOlOgy of the sections which pen
aiizes contracts permits them no con-
stitutional operation; therefore no con-
tracts being prohibited by valid legis-
lative enactment. there can be no opera
ton for that clause Of section SfSa, which
defines bucket shop as any place where
any contract prohibited by this act Is
made consequently. 1t is no Offense to
be the keeper OF such place"
The enactment passed on by Justice
Wright today was made subsequent to
the decision of the Court of Appeals In
the Wade case. Wade conducted a
bucket" shop it was charged, and an
indictment under section S65 OF the code.
which prohibits the setting up of a
gaming table. was returned against
him. He was convicted. and on appeal
the Court of Appeals declared a bucket
shop to be gambling under this section.
Attempt to Prevent Bucketing.
Later All attempt was made by Con-
sress to specifically prevent "bucketinG'
and bucket shops. and it is this attempt
at specific legislation that Justice Wright
holds to have been unconstitutional.
with the new sacton thrown out some
attorneys think, bucketing might still be
punished under the Wade decision. In
the cases at bar, however, the indict-
ments We're laid on the authority of sec
tions Stssa and S69b and no charge Of
setting up gaming table, as prohibited
In section $50. was made.
Attorneys A. s. Worthington, Charles
l.. Frailey and John C. Cuttings repre-
sented the defendants.
The Attorney General would make no
Wright today. He said, however, that
the government would take an appeal in
the case. and il was intimated that he
might have something further to say aft
cl Hc Tcdu justice wright ueClSlOu
Chicago Prosecutions to Continue.
CHICAGO. March 3O.-Prosecution Of
alleged bucket shop operators in Chicago
by the federal government will not be
affected by a decision today by Justice
Wright of the District of Columbia Su-
preme Court that amendments to the law
there were unconstitutional II the gov
ernment attorneys here understand the
situation. The reason for this is that
the prosecutions here are not founded on
any bucket shop legislation, but on the
statute against using the mails to de-
fraud United States District Attorney
Edwin W. Sims said today upon learning
of Justice Wrights decision:
Il am not familiar with the case, only |
but I have an impression the !
case was brought under q special statute |
applying to the District Of Columbia If |
that Is true, I cannot see that it will af- |
fect our prosecutions here in any way or
that it will affect our prosecutions in any
other territory outside the District of Co !
umbia where they are proceeding as We |
are here.
"Our prosecution Is brought under the |
postal laws. which prohibit the uee of |
Inc mails to defr4ud. Our proof Hes in I
the proof that the mails were used and !
that the bucket-shOpping was fraud. l |
am not sure OF what the situation IL In |
the District of Columbia, but If It is as |
my memory recalls it We will not be af- |
fected." 9t.