The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-09-30
ELECTION BETTING
LATE N STARTING
Brokers Confident Next Month
Will Witness Placing OF
Large Wagers.

made their preparation accordingly
The expected activity in the betting
market has not arrived, but all the
machinery 10 set to care for specu1a-
ton over the election. and brokers are
confident that next month will wit
ness the placing OF many large wagers
in the financial district They are
certain that there will be Bull Moose
scare before election. and that this
will be the signal for an unfolding OF
bankroils by men who like to back
their opinions.
Open betting in the financial district
has been hindered by the same law
which put an end to betting on the
horses and closed up the tracks. The
law makes ii a crime to record bets
on election as emphatically as to rec
ord bets on horses. But there il more
ingenuity on the Broad Street curb
than was ever exercised In the betting
ring on the race-track. and brokers
think that they have finally found a
way to handle betting business with
out breaking the law.
Briefly the new plan provides for
an exchange of memorandum between
the parties to a wager, the brokers
standing surety for tho payment The
memorandums are IN such form a.
this:
II. John Doe. promise to pay to
Richard Roe $3.50 in the event of Will
sons election and. Il. Richard Roe.
promise to pay John Doe $3.50 In the
event OF Wilson's defeat
That woulc 10 the form In three to
one bet on Wilson. and the Transaction
would be arranged BY the deposit OF
money with brokers. In case there were
any question Of the responsibility OF
either party. the brokers to pay over
the money on presentation Of the win.
ming memorandum.
The arrangement may seem . little
cumbersome. but any one desiring to
get his money down may do SO with as
little difficulty as is experienced id
buying or selling q stock. All that he
needs to do Is to place his order with
broker. and the broker win quickly
| ma another to take the other end Of
| tho contract. IN case the order Is placed
| the contract is as ample az in the
/ purchase or sale of stock.
Betting on the floor Of the Stock Ex-
I change is strictly forbidden by the
rules Of the exchange. and the rule IL
strictly enforced. except. Of course. In
the case Of small wagers. NJ broker
would risk his membership by placing
| a large election bet on the floor, but all
the Stock Exchange houses either have
men on the curb or have relations with
/ curb brokers, and money can thus be
placed through Stock Exchange houses
| without dimculty-that is, through
those Stock Exchange houses which
are willing to handle bets. Most OF
them. the larger ones especially, will
! handle no election money. but all of
tnem can REFER customers to houses
glad to get the business
| Apparently the Curb MARKET a..o-
/ citation also frowns upon betting. Its
oncers posted a notice a month .ro
that election betting was considered
detrimental to the best interests Of the
association, but the notice has elready
been more honored In the breach than
| In the observance and will not stand
! In the way o: any broker who desires
| to handle commissions.
Election betting may also be tran.-
| acted through London Lloyds, accord
ing to form which became popular in
the Taft-Bryan campaign four years
! ago. Previous to that time Lloyds had
written insurance against almost every
| imaginable contingency. oven to war
ranting a man against the chance of
| molesting his mother.in-law.
But the associated brokers had never
| written policies on American politics
| until a manufacturer who thought thar
Taft would defeat Bryan started his
plants at fun capacity at that time
| and went to Lloyds for insurance
against the chance OF Bryan's election.
| Lloyds wrote him . policy at a pre-
! MUM amounting virtually to odds OF
5 3-4 to l against Bryan. aud when this
became known there was a rush to OBJ
! tain those policies. which were essen.
| TALLY wagera
The technical business Of writing an
| insurance policy which is really no
more than q bet was thus described BY
New York insurance broker who Is
| a member o: Lloyds:
The form Of contract. insurance o.
wager comes under the Iloyds CLASH
ncation OF commercial hedges. In this
/ classification 1t is known in the par
lance of international insurance men al
p p. L. poiicy-that Is. As . policy
! with proof Of interest. The contrac.
| provides that the insured must state
the estimated loss TO him on a particu-
La eveEfualsty. That estimated loso Is
the face Of the policy. and according %
the strict terms Of the policy the in
surer may demand proof Of loss in the
case Of the happening o: . particular
contingency.
! The clause to that effect. however
: is entirely formal and 10 designed 70
/ protect t6s contract in accordance with
F. the English law As a mater Of prac-
I tice the contract Is As .aviolabIe as
that life insurane contract which Is
written. 'incontestsbie from date Of TO-
sue An insurance broker who should
refuse to pay the face value would
be treated In the same way ~ the
bockmake- who wciches At TztscraIrx
( The brokers quote the premivTn IL:
ggineas. A 10, per cent premium Is
a premium Of ten Euincss on tn. hun
drcts sterling. and since the gutnes
is one shilling In excess cf q pound.
a qao:ed rate o! 10 guiness per cent
- really q percentage Of 10 L. and .
quoted rate Of Is guinness per cent Is
a percentage Of - ia. Thus on a con
tract Of the face value 81 si.ee" with
a premium 81 10 guincas per cent. tse
insured deposits $50. In case OF Sue
- s.. ~.r.tv.x IN. II 600 far~ value.