The evening star and Newark advertiser., 1907-08-03
NOLAN co.
HAS CLOSED
ITS DOORS


bucket-shop clearing house on Wednes-
day afternoon by Detective Sergeant
Tuite and a dozen detectives from
headquarters is a signal victory for the
police. Right in the midst of adverse
criticism of the police came the sud-
den throwing up of the sponge by the
company, who admitted that the police
had enough evidence to warrant an in
dictment on the face of'lt.
The books of the company are still
held by the police, and some of them
may never be returned to the commits
sion company. Though the work of
ascertaining the methods of the work.
ings of a particular bucket-shop is a
difficult matter to the ordinary layman,
yet Tuite had the whole set of books
gone over and had gotten at the bot
tom of the company's methods by yes
terday afternoon, so that when Assist
ant Prosecutor Mott went to the attor-
ney for the defense they had the whole
case prepared. One document found
by the police in the safe, when shown
to the defendants counsel was suff1-
cient to make them throw up their
hands What this paper was could not
be learned, as Captain Carroll and Ser
geant Tuite refused to discuss it, both
saying that a conviction could be Sc
cured on the face of 1t If for ro other
reason
| When Tuite went over the books of
| the company he found some startling
| irregularities in the methods If con-
ducting the business both by Nolan
who. it was found by papers obtained
by the police, was merely the paid head
of a wealthy bucket-shop syndicate.
and that he himself was nothing more
than a telegraph operator who under
stod the buclzet-shop business.
! Tt was found that not only WAS the
main office trimming" the branches
In the different cities, but the heads of
the central Office were even beating
their employers.
There are at least eighty bucket
shops In the chain which had its head
in this city until the Nolan Company
went out of business. These include per-
haps fifty subordinate offices, and is
the strongest chain of bucketshops in
the country, say the police
Customers who traded with the
Nolan Company made very little
money, but that the company's receipts
were far in excess of the winnings
of the trades in any one day. Bank
books found in the Office of the COM
pany showed that the syndicate had
7 S106, 400 balance in the bank on July 30.
How much more money they might
| have had is not known, as the eleven
books found may be only small part
of the number the company held, the
police believing that some Of the books
| in the bank were being balanced.
Tuite declares that he found papers
and letters enough In the office of the
company to start action at any time
against the head of the concern, whose
methods, even with their own branch
offices, were not open and above board
Over a dozen letters were found adj
dressed to the company from different
cities showing that Nolan's presence
was needed in several towns tc
straighten out tangles in their business
methods. The letters showed that thu
clearing house people had never
gave an accounting or an item;zed ac
! | count. The company was prepared TO
, anything that might happen in the wa!
of lawsuits, but never SO that 1t would
lose.
Coincident with the finding oe tht
| agreement to set aside certain checks
representing money to be paid to pre-
vent hostile legislation, ruite found
copies of an opinion on the bucket
shop law of Pennsylvania rendered by
a New York bucket-shop lawyer. This
opinion was quite favorable to the part
of the chain of the Nolan syndicate in
PENNSYLVANIA. The decision was pre-
faced by the announcement that the
copy furnished the attorney was not
an "official reprint" The opinion is g
very long one. A copy of 1t was made
and sent to the bucket-shop keepers In
Pennsylvania.
With the copy of the decision was
sent this letter:
Newark. n. j., June /, 1907.
I'VE enclose herewith copy OF an opin-
ion ON the Pennsylvania law we received
from Mr.. Charles Earring, one of the lead
ing lawyers of New York. Mr.. Earring is
thoroughly familiar with all phases of the
stock brokerage business. and personally
we would rather have his opinion than any
other in New York city. AS the opinion
shows. he pronounces the law unconstitu-
tional. and assures us he will have no
trouble proving it as such anywhere. Our
advice to correspondents Is to go right on
and ontinue business, regardless of
whether the Governor signs the bill or not,
and If any of them are molested, we will
engage counsel and fight the case for them.
1t is more than probable, however, that
you viii not be troubled. as no doubt the
authorities would select some prominent
headquarters at Philadelphia or Pittsburg
in their attempt to enforce the statute,
IN which event test case will be made
We understand the Stock, Grain and Pro-
vision Company of Jersey City are taking
this stand also and undoubtedly all the
other houses doing business in Pennsyl-
yania will do likewise. Yours truly,
The Nolan Commission Company
feared a broker named James Bolton,
of Bath, n. Y, who was almost down
and out and ready to put his case in
the hands of the police, according to
letters found by Tuite Bolton was
the manager Of the branch at Bath.
His customers were being trimmed
right and left by the Nolan company
and they were putting up a kick.
Among the customers was speculator
named Mooney, who was the soft
thing for the office in Bath. Mooney
became angry after his margins were
wiped out by Nolan and refused to
square up his accounts. Bolton owed
Mooney money, and he asked Nolan to
drop off at Bath and straighten out the
matter. Nolan stayed away, as he
received a warning that If he went to
Bath he would be arrested, and that an