New-York tribune., 1908-06-07

concerning the entries of purchases and .,,,
infamous sales Of stocks, Mr. Lawrence .-.s
asked: WIS
:; DID these entries convey to vour mind ,,.,,
is SUSPICIOUS? A-Not at ali, MI. Coster aiWaVs
Tbe wss Was @ an I5 jT5esgIs5 was it
b,10si-o1og Soy know it was irregular way Of doing
,,-oe,Iss- A-As lar as l concerned
S-You had been in the Office for seven years and
T0n To you know that such entries would convey to
aour 1 % mind that there was something irregular?
wSu s|rt QUO ;Q II or would 1t not? A--Not from
-es.I SMIhe Wall Street point OF view is not an r-
is becaIee uie' Is IL II: IN great many ways it
street rec, who does not say It is a gambling hell and
v g IaSnonest nest business Even my father-fn-law has
-of2 SIS lis he in Wall Street, A--No He has always
-iu ne II Is the crookedest place in the world.
PROOF OF "BUCKETING."
At later hearing the proof Of 'bucketing"
was brought out more fully, the examination
running like this the questions put to Mr. Law
renee by 8 stanwood Menken. of counsel for
the receiver, being repeated for each Of many
transactions examined into:
shares Of tinted STATES s3ee 'ne eP Of
spons " eny !05 On th OF No and the CORE
mes 1re sate OF Ike amount Of stock at the same
the books purchase such stock? 40. '-''''u 0r
9-Wss 9-Was any any, commission omission paid? NO
EoEYou know that it did not go through tn. Stock
Q-Is that not what you call irregular trans
csfe fAre not iTTegiartes OF hat kind what
Q.Isn't it what is commonly called bucket
STATEMENT OF RECEIVERS COUNSEL.
Philbin. Beekrnan & Menken. counsel for the
receiver Of Coster, Knapp & Co, yesterday made
this statement:
IN In regard to Coster. Knapp & Co. we would say
Werner the receiver. is simply the usual bank
Tuptcy proceeding, having for its object the dis
@ e o PT4ceedng f ed4 thus far indicates that II.
nm nm was indebted to very large extent and that
practically his entire fortune in the Business MG
The record Of the methods of the firms business
By M eos sh5S Fho had o ae seh hF nsT9
IONS TO the clerks to give out no notices or any
orders and that these instructions were, according
ana that the unor paTner M RRfy RRapp was 9aess eS
dently kept in ignorance of the firms anairs-
We have evidence Of gross ignorance the part Of
out PPoof p of any Rnod ON NE his part of she
bucketing transactions referred to, although the
tons were repeatedly INDUCED in.
re m 5a snaa me ns M unaer
bucketing is universally INDUCED in by Stock Ex-
excited answer Of a witness under pressure. and
should not be for moment considered repre-
senting Wall Street conditions. He has attempted
qualify his statement in that regard before Com
missioner Alexander.
The losses arising from the failure will approx
mate 1000 900 and the assets are in the neighbor
hood Of $4,000 unless the life insurance OF 100000
on Coster's life is recoverable by the receiver.
It seems that the premium Of the life insurance
paid out of the firms funds, and have
reason believe that there Is q fair chance of
the receiver obtaining the amount Of this insur-
ance. under recent decision in the Court Of
Appeals the courts have held that where money
stolen from the firm and invested and used
pay life insurance premiums the creditors may
elect whether they will take the premium the
result of the payment thereof