New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-03-17
Tapping" of EAST" Lines
Will Be Stopped by
New Plan.
TELEGRAPH PACT TO
GUARD QUOTATIONS
Dealings of Bridgeport Firm
Cause Sensation Among
Traders Here.

! ne New Ork STOCK EAcnaHSe NeSleG-
day took official notice Of The Tribune's
exclusive exposure Of the plans Of the
New England Securities Purchase and
Sales Company, of Bridgeport, by an
nouncing through William {. Van Ant
werp, one Of its governing committee.
that a new contract is being made by the
exchange with the Western Union Tele-
graph Company by which it is hoped to
prevent the quotations OF the exchange
being given TO persons or corporations
who are not entitled to them or trans
mit.ed to them over Western Union wires
The Western Union has an exclusive
contract for handling the quotations Of
the Stock Exchange. That contract In one
form or another has been in existence
for many years.
The new contract, according TO Mr.. Van
Antwerp. will it is hoped, be so drawn
as to compel the company 10 exercise
more discretion in this leasing OF wires.
To safeguard the interests OF the eX-
change and the public the exchange may
demand tine right to wise the lists or
those supplied private wires, and 10 have
the right 10 say when a wire shall be dis
continued. irrespective of the purpose for
which It was nominally hired.
The Tribunes announcement that Rich
ard r.. Preusser, who was convicted IN
bucketshops case in Washington, is the
general manager of the Bridgeport con-
Germ which, according TO its president,
proposes 10 do wholesale business in
stocks under the English system which
requires the payment of neither com
missions, margins or carrying charges
interested Wall Street greatly II Will
be more interested to-day 10 learn that
Dick" Preusser is not the real big man
in the company, and that II has 50 far
progressed that it is arranging TO do bust
ness in Canada under a charter granted
by the Dominion government
The big man in the company is Bos-
tonian who retired from the bucket
shop game at the instgation of the police
few years ago with a fortune estimated
at s.. OOO. 900. but not without fight. He
is the person supplying the financial
backing. or bank roll,' as he and his
associates would put it. and Miles Nc
Donald, whom Preusser shot and killed
in Albany few years ago was his part
ner.
The plans OF the group financed by this
man have been Matching since fail. and
during most OF that time the group has
been watched by detectives employed by
the Consolidated as well as the New York
Stock Exchange. This inquiry has led
from this city TO Montreal and Ottawa
in Canada, through New England as FAR
west as Buffalo and Chicago. and AS far
south as Palm Beach and New Orleans.
Active in the scheme besides Preusser
and the Boston millionaire is a man
named BOschen, who has something OF
reputation as bucket shop opera tor. and
one Tucker. of Buffalo, who in the past
has engaged the attention OF the federal
and exchange authorities.
Boschen, according TO the information
in hand has secured from the Dominion
a special charter giving his
concern the right to deal in puts and
calls" Options" is yet another term.
and is the one that IL is used to describe
the practice in the charter held by
Boschen. This is nothing more nor less
than a system under which person is
allowed 10 bet as much or as little as he
wishes that certain stock will go mp or
down within stated time. Boschens
charter is understood TO be very liberal, |
though the conditions under which it was
secured and its exact terms are not very
we'll known here.
The plan, however. is not without its
mod flea tons of the we'll known put n |
call' game, and brings in the almost as
we'll known practice Of bucket shops Of /,
taking business on "A two-pOint margin. |
BY il what the bucket shop men call
''piker"-that is. a clerk or other person |
of small means-buys, say, ten shares of /
Reading. putting up . per cent of the |
par value of his purchase with the |
broker" He will apply for loan on 1
the stock, stating that he has not suf- /
hcient money in hand To Immediately !
pay for his purchase The bucket shop /
man on his part agrees TO take up the |
stock for him The purchase is thereupon /
entered on the books in the name OF the
customer, who signs a note showing that |
he has borrowed the fun value of the |
stock from the broker" the only money
ctually figuring in the transaction being
The per cent deposited by the "pur-
chaser"
A movement OF points against the
purchaser would, therefore, wipe him
,ut. even assuming that he would receive
what few seldom do receive I'm a bucket
'hop-the market price at the time he
was supposed 10 purchase or sell. Read
ng, Steel and other popular issues not
move within a range OF 10
points IN day, and range Of 8 points
would call for nothing more than passing
Comment. so that # will be readily seen
what chance the customer has TO win
ga inst the broker"