The sun., 1919-06-24
BROKERS SOUGHT
In STOCK CRASH



Conttnued FROM Ftrst Fupa
dscffef TO buy outright svuryshfng he
bad hsen carrying ON margin
Tha drTu informed him hs owed n
slaa, T6afa, hut the balance To hfs
crsdft. frciuffng hts winnings wsss he
says. ms gaT. 81 Hs says ns had his
lawyers, McHarB q MstcaH. of rs
Br1sdvny, tsudsr payment Of the SUM
no owed tts drrn. ami at the same time
dsnr.nd IN hts beR1alf dslfvsry OF alf
the securities the drm had bought for
hfu1 and tns securities he Ind depostosd
to eovsr his marsinA Loup q Co.
Kaye says. refused to make delivery
and said hey had dfspossd Of al M
securities that ha efaffnsdA He says
hs had several tzIkg with Prank Taylor.
tho offfcs mansgsr. and learned from
Taylor that they bad either pisdgsd a.
sold Ksysfs stocks fur their own bene-
~ and that ehers was mt enough cash
on hand 10 retu1hurss him
Kaye szys that h tually suorseds4 N
estffus from Eoup q Co n check for
s1a5oG. but that thu Chatham and
Pheuix bank declined to pay II. - the
account had been CLOSED On Tune 10
the firm gave him . check for the same
amount on the View York Trust C1rn-
pany. which was rscurued marked in
s1uficient funds
A third check. for 10000. on the New
York Trust Company. was similarly re-
pudfated. whereupou Kzys started suit
In the Supreme Court agzfnst LouD
q Co.
Doolinx says he WIS told yesterday that
the brokers' after their accounts In sew
80 orr hnn Ira H1d hraa
one with the New York Trust Com
pauy on June rs with deposit OF $500
and AGAINST that sum drew checks
snaounttus To $4,000.
$4,000 BonAhold>rs Victims.
In hfs statement Alderman Quinn said
that within stx months fake companies
Appearing on the New York Curb have
circulated billions Of dollars Of worth
less stock all over the country. cheat
ing people Of their savings and often
getting Liberty Bonds IN exchange.
Probably $4,000 new small boudhcEd-
bers-nevsr before trvestorr-have be-
come easy prey to- every type Of stock
iohbfng swind1er and bucket shop
ksspsr.- said the Alderman One
would expect the District Attorney and
Police Commissioner OF the largest and
ing the headquarters OF all these stock
tobbtnx svfndIers, to have visaon enough
70 realize that fu1nedizts measures are
necessary properly to regulate the sale
and exchange OF legitimate stocks and
bonds and vfpe out the AIsgi1imata'
He said that he realized months ago
after talking with certain brokers that
II the Wild, fraudulent and crazy spec
ulatton" was not suppressed The cure
market would be expelled from Broad
street. He therefore offered an orfi-
nance putting the curb brokers under
the Jurisdiction Of the Department Of
Licenses. with a fee OF $1,000 year
and a surety bond Of S75.9Oo. II has
been amended 30 that the surety bond Is
omitted and the fee reduced to $500. but
IL h sill IN the committee Of general
welfare Of TIE Aldermen because Dis
trtct Attorney Swami gave IL as his opin-
lon that the Board Of Alderman have no
jurisdiction In the matter" Differing
with Judge Swami Quinn said the Al
dermen had absolute Jurisdiction over
the streetA
Quinn Charges Petty Politics.
The only reason this ordinance was
not more promptly passed upon" Quinn
continued. was because 10 happened 20
be introduced by a Republican. The
methods of this legislation do not per-
NIT any good legislation to see daylight
unless IL Is introduced by q TanlEnanyite
or Is fathered by the District Attorneys
once or the head Of some other depart
ment Of the city Government Every
biz Of intelligent legislation introduced
by sither the Socialists OF Republicans
for the past few years has been sunk in
G. r1mIttee and then later IN thu ids
I.aEarized by our Incompetent Demo
cratic administration and blAzonSd forth
n piece OF Democratic wisdom"
He served notice that he would intro
ducs two more ordinances which. with
the first one. would Danish stock swim
dlers He would license not only curb
brokers. but all stocks traded in on the
curb and individuals or companies pub
fishing their quotations. He would make
10 misdemeanor for any newspaper to
publish quotations Of a stock not listed
with the city's license department.
Conditions on Broad street to-day
the Alderman added, where the curb
market operates, are worse than they
have ever been in the history Of this
institution. IL Is hoEdup from begin
ming to end and the poor lamb who
trades IN this type Of securities hasn't
got the ghost OF a chance The Curb
Brokers Association Is an irresponsible
body. which collects fees from the curb
brokers to stand on Broad street IL is
ridiculous to think such . condition OF
Affairs could 60 on as long as IL has
permitting = private association to COL
lecf money which belongs TO the city
government The gentleman who Is the
head OF this association and practically
runs II In q resident OF New Jersey, and
q great many curb brokers live out OF
town and yet pay fees 10 an assocta rion
for using the streets Of New York.
Besides this. they try to get every
company whose stocks or bonds are
traded In on the curb 20 list their Sc
euTities with tho association REGARDLESS
OF whether there Is any merit or value.
Yet / understand Mr.. Swami u taking
his advice and counsel from the mann
beTs OF this associa don Instead of be-
ing . good influence hey are tlIst the
opposite, because II you give up to them
and stand for their holdups that In ali |
that Is necessary
Mccormack Defends Curb.
z. r Mccormack. president OF the
New York Curb Market Association.
said:
There are four importan, thing,
which have been taken Up by the ssso- |
citation for which Alderman Quinn fails |
10 give proper credit. All OF these ar. |
In the natur OF corrective measures ana i
are designed 70 defeat the ends of the |
FAKE stock promoter and the ny By night |
trader. They include:
First. no publicity is sivsn to sale,