New-York tribune., 1900-12-05
BROKER ARRESTED ON EXCHANGE.
CHARGED WITH EvADING THE WAR REV
ENUE TAX

Charged with violating the War Revenue act.
Joseph Halk. member Of the Consolidated Ex-
change since April 10. 1885, arrested yesterday
afternoon on the floor Of the Exchange by Deputy
before United States Commissioner Shields. where
re was held in bail OF 81 900 for examination De-
cember IL Halk's bond signed by his attorney.
Charles K. Bauerdorf1. Of No LIB Broadway.
The technical charge against Halk. whose ofnces
are ln the Exchange Building, No. so Broadway,
and who lives the Hotel St Andrew is failing to
make memoranda OF sales Of stock. and thereby
evading the internal revenue war tax. the War
Revenue act providing that a stamp tax OF 50 shall
be placed every memorandum Of sale OF stock to
the amount OF one hundred shares.
The arrest was made quietly and not gen
orally known by the members OF the Exchange
until late in the afternoon. Halk, who the
trading hoor was called the rail by McAvaney,
who said he had a warrant for the arrest Of the
broker HaIk said Wait q minute" and went
back the floor. The deputy marshal started
after him but allowed by the doorkeeper TO
so through the gate only after he had shown MS
shield He stood HaIk while the latter closed
his transactions. and then Halk, remarklng to
friends by that he had 20 60 uptown busi-
ness. left the board room, followed by the deputy
marshal. who took him TO Commissioner Shields 8
Office The arrest was a result OF a three months
investigation which has been conducted by Colonel
r. O. Thompson. special revenue agent here. who
AYERS that HaIk has made fifty or sixty sales OF
stock IN only Of which has the memorandum
been made properly and IN accordance with the
law. Colonel Thompson says hs has data from the
books Of a certain concern showing that twenty or
thirty other brokers have for some time been
guilty Of similar alleged violations OF the law He
declares that when ne started this investigation
three months ago he appalled, at the surprts-
ingly large number Of brokers who were thus evad-
ing the War Revenue ct and that he warned
many Of them He also says that he has certain
proof th6t q number OF Stock Exchange firms have
telephone connections with members OF the Con-
soldated Exchange and that they make sales in
that way, which. he says he understands to be
against the rule of the Stock Exchange.
Colonel Thompson was asked whether not the
members OF the Stock Exchange evaded this law
BY way OF reply he shrugged his shoulders and
said:
We'll. the members OF the Stock Exchange do
business IN & much more careful manner"
The formal complaint against Halk made
from information received from the books of A.
G Hooper & Co. OF No. 81 Broadway. who made
assignment November is.
Colonel Thompson asserts that other arrests win
probably follow that OF Haik. and that he has got
his evidence in such shape that he will be able to
Etop the evasion OF the War Revenue act
In June, lS9 Colonel Thompson collected several
thousand dollars arrearages from Consolidated
Exchange brokers Who he learned. had been sub
stituting wOrd-ofmouth agreements for the taxable
sales tickets required 70 be delivered IN erecting
stock transactions.