The Cosmopolitan, as I said, was my last resort. It was the richest
bucket shop in New England, and as a rule they put no limit on a trade.
I think I was the heaviest individual trader they had--that is, of the
steady, every-day customers. They had a fine office and the largest and
completest quotation board I have ever seen anywhere. It ran along the
whole length of the big room and every imaginable thing was quoted.
I mean stocks dealt in on the New York and Boston Stock Exchanges,
cotton, wheat, provisions, metals--everything that was bought and sold
in New York, Chicago, Boston and Liverpool.
You know how they traded in bucket shops. You gave your money to a
clerk and told him what you wished to buy or sell. He looked at the
tape or the quotation board and took the price from there--the last
one, of course. He also put down the time on the ticket so that it
almost read like a regular broker’s report--that is, that they had
bought or sold for you so many shares of such a stock at such a price
at such a time on such a day and how much money they received from
you. When you wished to close your trade you went to the clerk--the
same or another, it depended on the shop--and you told him. He took the
last price or if the stock had not been active he waited for the next
quotation that came out on the tape. He wrote that price and the time
on your ticket, O.K.’d it and gave it back to you, and then you went to
the cashier and got whatever cash it called for. Of course, when the
market went against you and the price went beyond the limit set by your
margin, your trade automatically closed itself and your ticket became
one more scrap of paper.
In the humbler bucket shops, where people were allowed to trade in as
little as five shares, the tickets were little slips--different colors
for buying and selling--and at times, as for instance in boiling bull
markets, the shops would be hard hit because all the customers were
bulls and happened to be right. Then the bucket shop would deduct both
buying and selling commissions and if you bought a stock at 20 the
ticket would read 20¼. You thus had only ¾, of a point’s run for your
money.
But the Cosmopolitan was the finest in New England. It had thousands
of patrons and I really think I was the only man they were afraid of.
Neither the killing premium nor the three-point margin they made me put
up reduced my trading much. I kept on buying and selling as much as
they’d let me. I sometimes had a line of 5000 shares.
Public-domain text, read in full here on John Shaqi.
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