Evening Star Newspaper, July 26, 1923, Page 3

Bucket Shops Join “Exchange” For Badge of Respectability Find Bars of Consolidated Lowered and Use Reputation of Membership to Boost Own Swindles. VIIL BY R. K. TREVOR. (Coprright, 1923, by New York Commercial.) The public, thoroughly scared by the various rumors that appeared in 1919 with regard to many meritorious curb promotions—these rumors being sturted often apparently by the Lucket shops, as the reader can well purmise by what was told in the pre- ceding article of this serles—and by scandals which developed concerning &ome of the questionable promotions, dumped on the market their holdings of the stocks representing those pro- motions, The resulting smash in prices meant enormous profits for the bucketcers in the wiping out of mar- &in accounts of their customers. It was soon to be shown that the public was so hard hit on this oc- casion that efforts to coax it back into the curb market to an extent sufficient to provide enough business for the bucket shops that were still operating Wwere to prove of no avail. As month a r month went on, and the curb bucketeers found overhead | cutting more and more into thelr bankrolls, with the public still refus- ing to come back into the curb mar- Xet. many of them decided to seek out other flelds. They were well aware ©f the fact that there were hundreds ©f thousands of people throughout the country, who, although they had rd Gf enormous profits made by | cople in speculation in the| ket in the war shares boom | 916 and o few years later, ad never played the stock market Xhemselves. Mail Order Campaigns. bucket shops saw an oppor- | to get these people into the market by soliciting buying ers from them for stocks listed on ew York Stock Exchange, rather an for curb stocks against which | there had been so much agitation. In | ‘ll{P summer and fall of 1919 several | of the big bucket shops began to so- licit such business through enormous | mail order campalgns. The bull mar- et of 1919 was then near its close, and a downward movement was starting in stocks in all markets. Stocks on the New York Stock Ex- thange in the following months were %o discount in heart-breaking declines the severe business depression which ahead. The fact that the boom period of 1919 had carried the stocks o highly inflated pr meant that | the extent of the declines was to be, all the greater. The bucketeersj Viewed the inflation existing and, Xnowing that they were dealing with | people who were but little familiar | with stock market valu they pro- cecded gleetully to the slaughter of the innocents. | T now ta develop the first ! Stem soliciting or- | The tunity ince the federal & d smashed a similar system pectacular raids nearly ten before Seats on Exchange. ill be recalled that hou hop rings of fifteen able to acquire an air ility for themselves with | ullible by becoming members of | certain out-of-town stock exchanges. | It so happened that things were | shaping nicely for the latter-day bucket shops als of respectahil obtained mem dated Stock able to p securities New York. 1t appears that members of the C Exchange who of houses v These Institutions ip on the Consoli- ange, which was ong record as a | in the city of there were many Consolidated Stock | disapproved of the! Bort re_beginning | 604-610 9¢1; St. N.W. Formerly Stag Hotel Elcne Main 8108-8109 weekly; $1 ower and _lu er_cent more. Rooms Like Mother's. “FLAT TIRE? MAIN 500 LEETH BROTHERS Service Charge Never Over SL.0& s7 rooms, §6 ith toilet W b 30 ving July 28 for W atains or ork in auto. ~ Phone evening Kensington man should phone Ttates reasonabl 0T TE RESPONSI wacted by any othe R ' ing between T. Brown and Adolph B. ' Johnson, under fitm name of Brown & John- sou, has, under date of July 24th, 1923, been dissolved. all bills to be rendered to Adolph B. Johnson. = “Biges Pute HEAT 1o Heatior™ | Your Heating Plant ——ought to be Repaired or Re- placed NOW to save incon- venience next fall. The Biggs Engineering Co. WARREN W. BIGGS, President. v o T N BIOGS P aur. PRINTING —that fulnile you highest expectations [The National Capital Press | — 1201212 D et mw. . The Adams’ Impress ~—stands for satisfaction—plus in printing. “High geade. but Dot high priced.” BYRON S. ADAMS, JSyiiey | Good Roof Paint —a good Roof Painter! You get them both by having this reliable firm apply our _ProtecTin Roof Paint. Thorough, sincere work always. Ask for estimate. KOONS BOgEING - 14227 8t N.W. _COMPANY _ Phone Main 933 Save Your Metal Roofs PERMANENTLY W : Hirsh Roofing Compound Guaranteed 10 Ye: heavy-bodied coating of e s thiehee i Al We are daliy covering roofs, worn, on_ residences, warehouses, kages, churches, laondries. blHE RESISTING —~WATERPROOF. For Sale and Applied by Paul H. Sears Co., Inc. Main 3934. CONTRACTORS. Bond bldg. Did the Roof Leak? rusted and public ga- | 1239 Wisconsin Ave. to get a similar air | b IlllllllI|IIIIIIIIIIIIIIIIII|-IIE to obtain membership. During the regime of J. Frank Howell, who had been president of the Consolidated Stock Exchange a short while before, the administration had stood out agalnst admitting several of the houses against which criticism was directed, it is asserted. The new ad- ministration saw several reasons why it should let down the bars, however. One of the principal reasons, accord- ing to the street gossip at the time, was the insistence of many members that something be done speedily to increase the revenues of the exchange because of the organization’s high overhead. Competition with Curb. The question of the consolidated making itself a primary market in stocks, instead of having its listings made up solely of stocks whose pri- mary listing was on the New Yogk Stock Exchange, was advocated in some quarters as one possible means for the raising of additional revenues. However, efforts to carry out that plan failed. terests whose stocks had not been admitted to trading on any New Jork exchange hesitated about attenfbting to make markets for their stocks on the Consolidated Stock Exchange, as they “considered that exchange had not developed the sort of organization among its members that would at- tract buying power to those securi- ties. Another obstacle was the fact that, for the Consolidated to begin the listing of stocks as a primary market, to place itself in direct competition with the New York Curb Market— which has been the “trying-out” mar- ket for stocks newly introduced to trading—and the opposition of curb interests would he aroused. Consequently, the consolidated came to the conclusion that, all things con- sidered, the letting down of the bars to some of the various houses which were now seeking membership on the exchange would provide the best method for the exchange to obtain additional revenues. And so the bars were let down. It was certain of the houses which were admitted to the Consolidated from that time on which were to score some of the heaviest failures when the bucket shop stem col- lapsed a few years later. Presented Good Front, With the title “members of the Consolidated Stock Exchange” now tacked behind their names, these houses were able to present a glitter- ing front to the people whose orders thev solicited for stocks listed on the New York Stock Exchange. They had a leeway in seeking business such as the New York Stock Exchange did not permit its members to have. For one thing, their advertising in the newspape Everything in Paints, Oils, Glass and Brushes Becker Paint & Glass Co. Weat 7 Beautiful Bride Portraits SPECIAL SUMMER RATES JUNDERWOOD 'UNDERWOOD . Main 4400 LT Must be seen to be rooms and bath; open tub; brick garage. Washington’s most beautiful residential section of detach- ed homes. Containing seven million feet of forest-covered land, with six miles of improved streets. “The Triangle of Increasing Values” between Connecticut, Massachusetts and Cathedral avenues (Woodley Rd.). Over four million feet of land sold. Over ninety homes from $15,000 to struction. Wooded villa sites, brick homes, with lots from 50 to 115 feet front—Park Office. 32d and Cathedral Ave. (Woodley Rd.). Middaugh & Promoters and other in- | would be for the exchange 13th & QUINCY STS. NW Price and terms reasonable. N. L. SANSBURY CO., INC. “Everything in Real Estate” 1418 Eye Street N.W. ‘Phones Main 59034-5 Members of Washington Real Estate Board . THE. EVENING sort of close superylsion which was exercised by the New York Stock Exchange with regard to advertise- ments placed by houses which were members of that exchange. Also, the bucket shops did not face any such drastic_supervision as did the New York Stock Exchange houses regard- ing the character of literature used in circularizing and in individual cor- respondence with customers. Also, the bucket shop fraternity found possible and convenient to use the most unscrupulous sort of “go- getters,” these individuals being high pressure canvassers who were paid handsome commissions for bringing new accounts into the bucket shops. The “bucketeers” were throwing away their stolen moneys in high life ! on the great white way and in Long Island road heuses. There they were meeting the elite of other parts of the underworld—the bootleggers, the race track “touts,” wire tappers, et al. They enticed the latter into the stock market as bucket shop customers. When those wily individuals had been “trijmed” they did not bemoan their fate, however, as did other “suckers.” Some of them saw through the swin- dle and philosophically noted that the bucketeers had what looked like a more profitable line of criminality than their own. They decided to get iinto the bucketing business them- selves. 'And they did. Going at the matter in a business- like way they quietly sought out the people who would tell them most about it. Those people were the em- i ployes of the bucket shops by which they themselves had been “trimmed.” Often they did not need to look very i far to find those people. For many of the bucket shop employes were get- ting, in one form or another, enough | of the money floating into the bucket shops that they also were basking in the bright night lights. The bootleggers, the “handbook kings” and the wireless wire tappers had the bank rolls for the starting of the new bucket shops and their new found friends had the knowledge of how to work the game. And so a i brand-new crop of bucket shops be- | an to appear: But_the bucket shop business was now becoming overcrowded and was { “riding to a fall” Details regarding | the pitfalls which lay before these | new bucket shops and those with | whom they were entering into compe- tition will be told in the next article of this serl KING’'S YACHT AGROUND. By the Associated Press. SE. England, George's yacht Brit- aground on the Shoebury July tania ran sands near the mouth of the Thames at the completion of the first round of a race today. Her position is se- rious. The king was not on board. It is regularity of behavior, from one year’s end to the other, that inspires people to single out the Hupmobile among all cars. 1 STERRETT & FLEMING, INC. Champlain St Kalorama Road 5050 and 1223 Conn. Ave NINNNNnNnE appreciated. Six large fireplaces: built-in bath LT HINNE Massachusetts Park Includes what remains of $200,000 built and under con- lots and central and side hall Shannon, Inc. Woodward Building, 15th and H Sts. Established 1809 Fixing Roofs to Stay Fixed It’s one thing to “tinker” a roof—but quite an- _other matter to repair mechanical operation; the mechanics and science. The latter is our method. We repair—but we find out what caused the fault —sp that we know what to do—not only to remedy; A very important thing, you see— one that saves the expense of recurring trouble. but to prevent. Send for us—it’s always cheaper in the end. —Leaky roofs quickly cause ruln to walls and paper, hence they are not to be neglected. We make roofs leakproof. moNCL AD Roofing_1416 F st. n.w. Gompasy. PhoneMain14. 2120-22 Georgia Avenue it lastingly. One is a other is a combination of Phone North 2044 STAR, WASHINGTON, D Hello! Hello !—Probably Not. C., THURSDAY, JULY, 26, 1923, —By GLUYAS WILLIAMS. N ! DOES ANYONE - ON LEAVING - A PAY TELEPHONE BOOTH - AND HEARING THE CLINK - OF THE DROPPING COIN - TAIL TO TURN - SLOT WITH EAGER HAS MADE A MISTAKE Al AND EXPLORE THE (N THE HOPE THE OPCRATDq TINGER - SHOT HIS NICKEL BACK GLoYas WiLLiAMS (C) Wheeler Syn. Inc. TheXoimgXews Yoo 1319-1321 F Street STORE NEWS Close Saturdays 2 P.M. “Fashion Park” and “Stratford” Clothes July 26 Buy Now! " The American Woolen Co. opens its sale of Fall Woolens with advances of 159. Wholesale costs of Fall Suits will be at least 25% higher. We offer you our present stock---hun- dreds and hundreds of suits---at HALF, PRICE. Buy one suit surely- All %40 Suits, *20 All 50 Suits, $25 All 360 Suits, *30 These are the fine summer woolens, including our noted lines—“Stratford” and “Fashion Park” Clothes. : : 5 Coats are unlined, but beautifully finished in the French-faced style of tailoring. Delightfully cool during the hot weather. But all these suits have vests. Put on the vest -and vou're ready for fall weather. Sizes are complete, with extra stouts and talls; also many of the smaller sizes to outfit boys for school. . better buy two! We Must Add the Actual Cost for Making Any Necessary Alterations Genuine Palm Beach Suits, $12.75 Silk Mohair Suits, $16.75 ~ Aerpores and Gabardines, $21.75 White Cricket Cloth Trousers, $7.75 Linen Golf “Knickers,” $3.75 (Light and Dark Shades) The popular mod- els in Sennit Straws that sold at $3 and $3.50. Straw Hats aged in wood that’s why This old-time process applied to smoking tobacco takes out all harshness—all rawness. - And the flavor can’t be beat —in a pipe or in a hand- made cigarette. Pipe & Cigarette Tobacco Licaerr & Mrens Tosacco Co. The Safest of Investments -—and the most profitable— You can rely definitely upon 79— and it'll be paid the instant it becomes due. First Trust Notes are conceded to be the soundest of investments. Espe- cially is this true of this issue we are offering—divided into denominations of small amounts—$100, $250, $500, $1,000. They are backed by improved real estate of acknowledged value— far in excess of the Trust carried. Consult with our Mr. Boss, Mr. Phelps or Mr. Webster as to the details. They are interesting. Boss & Phelps The Home of Homes 1417 K Street Phone Main 4340 'WOODRIDGE HOMES ' Just North of 18th St. and R. I. Ave. N.E. Country Homes With City Improvements 1807 to 1847 Monroe St. N.E 8 Large, Light Rooms Sleeping Porches, Sun Parlors, Attics . $1,000 Cash, Balance Monthly :| $7,450 and Upward Take R. I. Ave. Cars to 20th St. and Walk North * Phone Us for Auto to Inspect ~Ous Roptumpntetion i Your Proceceion” E:lect,rical#ifif/g’ d] =t CRYSTAL [i§ RECEIVING $ I 5 SET A Splendid Receiver on the New “C. & P.” + Sending Station _ Here is_a set that will give as good service from the new Chesapeake & Potomac station—one of the best in the country—as any high-priced set on the market, vet it sells for the REMARKABLY LOW PRICE OF $15! Price includes set of high-grade 2,000-ohm _telephone receivers, and necessary an- tenna equipment, LY The best known materials are used throughout. No batteries are required. There is nothing to get out of The crystal detector has order. The panel and ‘the micrometer ,adjustment and tube on which the tuning is so designed that when coils are wound are of bake- sensitive point is found lite. The tuning coil is variable pressure adjustment mounted on back of panel. may be made without chang- The circuit is direct coupled ing location of point. National Electrical Supply Co. 1328-30 NEW YORK AVENUE MAIN 6800 with taps connected to two ten point switches on face of panel. , Exéerienced AdvertisersPrefer The Star