BUCKETSHOP LURE

Waikato Times, Volume 118, Issue 19634, 22 July 1935, Page 4

BUCKETSHOP LURE

WARNING IN BRITAIN

FRAUDULENCE WITH SHARES.

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 nas dealt with numerous cases of fraudulent stock and share monly known as “bucket-sho-ps. Tn® fact that many of these swindlers are able to carry on their frauds for long periods without police Interference is beoause of the difficulties in getting evidence against, persons accused <1 this class of fraud. „ ; The mainstay of the “buonet-shop j is the gambling Instinct latent In most people, to which must "be added tlu 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 nothing about it rather than be looked ; upon as “mugs.” ! The Stock Exchange is an exceed- | ingly close corporation, and the 1 methods of business, commissions to bo charged, etc., are severely regulated. These professional laws were mainly brought into being .In 1773, when the stockbrokers banded themselves into a corporation and settled ! in Capel Court. London. ( The very fact that the Stock Ex- * change was so guarded by severe regulations in the conduct of business relating 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 commenced operations In 1812, opening sumptuous offices in Old Change, London. He dressed profusely, scattered money right and left, and judiciously allowed it to be known that he had “speoial 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 fSOO.OOO. He languished in prison for ten years, and then died.