THE LURE OF THE BUCKET SHOPS.

Horowhenua Chronicle, 12 July 1935, Page 6

THE LURE OF THE BUCKET SHOPS.

An official warning has been issued in Britain against bucket-shop lures and bogus "share-pushers," says the "Daily Express." During recent years the law has dealt with numerous cases of fraudulent stock and share exchanges, commonly known as "bucket-shops." The fact that many of these swindlers are able to carry on their frauds for long periods without police interference is because of the difficulties in getting evidence against persons accused of this class' of fraud.

The mainstay of the "bucket-shop" is the gambling "instinct latent in most people, to which must be added the marked distaste swindled' individuals have for admitting the fact. A surprising amount of financial gambling is done secretly by those possessed of small incomes. Eventually they burn their fingers, and prefer to say',--noth-ing about it rather than, be looked

upon as "mugs."

The Stock Exchange is an exceed- ] ingly close corporation, and the methods of commission to be charged, etc., are severely regulated. These pro-' fessional laws; were mainly brought 1 into being in 1773, when the stockbrokers banded themselves into a corporation and settled in Capel Court,' London. . /•■-. • '■ The very fact th&t tfte:,Stock Exchange was so guarded by severe regulations in the conduct of business reJating to buying and selling brought

about the "swindler's opportunity," as Baron Martin said in trying Robert Throgmorton, prince of bucketeers, who led the way in this kind of fraud. Throgmorton commencod operations in .1812, opening sumptuous offices in Old Change, London. He dressed prafusely, scattered money rifht and left, and judiciously allowed it to be known that he had "special information denied even to the Stock Exchange members:' He had, in fact been expelled from the Exchange for questionable transactions.

Human nature being credulous, his offices were soon thronged with clients. He accepted' commissions, took the guineas, and at first paid small profits. Four years later the crash came, and Robert Throgmorton was a fugitive. He had plundered the public of eight hundred thousand. He languished in prison for 10 years and then died.