New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-03-18
EXCHANGES TERMS
HIT WESTERN UNION
War on Bucket Shops
Means Big Loss in
Telegraph Tolls.
STOCK TRADERS ASK
PRIVATE WIRE VETO
Even Tickers May Be Put Under
the Ban Before NegOti-
ations End.

Terms Of the contract which the New
York Stock Exchange has demanded OF
the Western Union Telegraph Company in
its efforts 10 drive the bucket shops out
Of business became known in Wall Street
yesterday. The telegraph company, which
for many wears has enjoyed the exclusive
privilege Of distributing the quotations OF
the exchange, as we'll as receiving a large
revenue for supplying bucket shops with
private wires. objects TO a clause in the
contract which will deprive It Of the latter
source Of profit.
This clause gives 20 the New York
Stock Exchange the right 70 veto the use
Of private wire by any firm or corpora
ton it believes is doing bucket shop
business. Teeth are given the contract by
arother provision, under the terms of
which the exchange can at any time ter
inmate its contract with the Western
Union and compel IT TO remove all its
wires from the Stock Exchange Building.
As substitute for the latter provision
the Western Union interests suggested
giving a bond for the faithful perform
ance OF the contract-a suggestion that
las rejected because II opened the way
for the telegraph company 10 continue
serving an Objectionable customer until
the controversy was thrashed ont In the
courts, and might lead to litigation gem
orally
The new contract will be discussed this
afternoon by a committee from the gov
erning body of the exchange and officials
Of the Western Union after the close of
the market Representatives OF the ex-
change will insist that the company make
haste in giving its answer.
This demand 10 expedite matters is due
10 the exclusive announcement in The
Tribune on Monday that bucket shops are
again hourishing in New York. This
synchronized with the visit Of Senator
Rotert i. owen. author OF the bill to reg
ulate the exchange, TO Wall Street
Senator owen went over the exchange
building from cellar TO garrett paving
particular attention 10 the way in which
quotations are handled. He asked how
bucket shops obtained the quotations OF
the exchange, and was told that the ex-
change had been unable 10 prevent them
from doing so. He was also informed
that Il new contract had been submitted
10 the telegraph company which it was
hoped would give the exchange more
control over its own figures than IL had
been able to exercise in the past Sena-
tor owen left no doubt in the minds OF
the brokers who were entertaining him
that it might add to the comfort Of the
exchange if such contract was made.
The situation that the Western Union
thus finds itself in is almost parallel 10
that which it was compelled to face In
the poolroom war. Then it enjoyed an
immense revenue from poolrooms through
its racing department. Eventually It
was forced to abandon this profitable
field.
Supplying private wires TO bucket
shops is highly remunerative, but SO is
the business OF the Stock Exchange. IN
der the terms Of the new contract, how
ever. vet another source Of the Western
Unions revenue is open to attack-that
from the leasing Of wires to ticker com
panies. Many of these supply bucket
shops with service. Should they continue
10 do 50 after the contract becomes Ell
fective and they have been warned to cut
off Objectionable customers. the telegraph
companies could be compelled TO deny
them all service Thus the amount the
telegraph company stands TO lose be-
comes a large sum. on the other hand
the Stock Exchange will assume a re-
sponsibility for the handling or It's quo
tations that it has not carried in the past.
II was said at the Stock Exchange yes
,erdav that complaints of the existence or
bucket shops had become more numerous
~ late. Some Of these shops are in New
York. There are places within the shad-
ow Of the exchange Itself where 81 and y
bets can he placed. it was asserted.
In addition TO trying to choke off quo
tations from the bucket shops the eX-
change IS trying to devise ways ana
means of stopping the supply of stocks TO
these places. governor OF the eN-
change told a Tribune reporter yesterday
that there was no doubt some members
Of the exchange innocently supply stocks
to the outlaws.