New-York tribune., 1908-06-10
COSTER'S OPERATIONS
LOST IN FRIENDS NAME.
Debit Balance of 5000, 900 Shoscn by
J. G. Marshall account.

James C. Marshall, senior member Of the Stock
Exchange firm of Marshall, Spa6er & Co, the
star witness yesterday in the Coster, Knapp & Co.
bankruptcy proceedings before United States Com
missioner Alexander. Mr.. Marshalls testimony
brought out the disclosure that Charles Coster the
senior member Of the ruined firm. who committed
suicide last April. operated large scale and
with heavy loss through an account which was car
ried the books Of Coster, Knapp & Co. in the
name OF J. q. Marshall,
The existence OF this J. G. Marshall account
which had been running for years. was totally un-
known Mr.. Marshall, he testified, until after
Charles Costers death. In april Of last year the
account showed debit balance Of over staee. ana
IL was then transferred on the FIRMS books TO the
of {. and w. B. Coster When the firm
failed. following Charles Coster's suicide the ac-
count showed debit balance OF over S.onooo
Mr.. Marshall said he could not imagine why
Charles Coster who was warm friend and bust
ness associate had seen fit 70 operate an account
under his CNsrshaI'sl name. It Was done. presum-
ably TO impress the employees and customers of the
firm with the idea that the firm was handling the
business Of some big plunger. In this way Charles
Coster was able for years TO conceal successfully
his own heavy operations in the stock market
s S Menken counsel for Louis Werner, the re-
ceiver for Coster. Knapp & Co. when asked
whether his opinion the carrying of this account
in the name Of J. G. Marshall made Mr.. Marshall in
sny way liable for the heavy losses entailed by
Charles Coster, replied in the negative. Mr. Mar
shall" he said, has testified that he knew nothing
70 the death Of Charles Coster- do not see how
he has any liability IN the matter The firm OF
Marshall. Spader & Co transacted the bulk OF the
business Of Coster Knapp & Co., which was prin
cipally the private trading OF Charles Coster with
the moneys OF relatives and customers. but lost
nothing in the failure, all its open trades
secured by collateral
Joseph Lawrence, jr., manager of the failed firm,
testified again the ''bucketing' of orders by
Charles Coster He also brought out that the state
tax IF on Of
was charged against the customers Of the firm
fictitious sales. This action however. a natu-
raj one as the customer always pays the state tax
in addition to the brokerage commission of one
eighth Of per cent.
Mr. Marshall, while on the stand, asked
cerning the present Whereabouts of W. B. Coster.
the brother Of Charles Coster. He said he seen
w B. Coster only once since the suicide of Charles
Coster. and that he had idea where he
present. W B. Coster he said. into his office
the day after his brothers suicide. He could
recall what subjects discussed at that time.
but thought that they important. There
was little ripple laughter when Mr. Marshall,
in answer question put by Mr. Menken, said
that he had private ledger. but unable TO
member the full name of his private secretary who
kept IL
Mr. Marshall said that Charles Coster heav-
fly short OF the stock market at the time Of his
death. These trades were carried with Marshall,
Spader & Co. but were amply Inargined- Milton
welch. chief clerk fer Marshall Spader & Co.. said
his firm s5O4000, which secured by collateral.
There was private wire, he said, between the
Offices OF the firms and he went TO luncheon
nearly every day with Charles Coster.
Mr.. Nenken also inquired about a for s12-
900 made in favor Of Charles Coster by W. II.
Martin a member of Marshall, Spader & Co, and
turned over 10 the latter firm by Charles Coster
collateral. Mr.. Marshall said he did not know this
note was among Charles Coster's collateral until
after the latter's death. He said Mr. Martin
plzined TO him that Charles Coster had lent him
tMartinl considerable money various occasions
when he CAartin) in hard luck, after the fall
ure Of the frm of Coster & Martin. After Martin
had d member Of the firm of Marshall,
Spsder & Co. and prosperous once more, Cos
ter asked him 70 make out a for the money
lent. which be did.