The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-25
SWAMI AND BROGAN
CLASH ON REPORTS
Prosecutor Again Blamcs For
mer Aid for Failing to
Try His Cases.
ADMITS ORGY OF FRAUD
Tells Of Difficulties in Getting
Convictions, but Promises
Activity.

District Attorney Swami admitted last
night that New York has moro fraudu-
lent stock brokers and, promoters now
than ever before. and that the bureau
which he advocated before he took ONCE
and which was his pet department. the
Commercial Frauds Bureau, had done
little TO check them.
He blamed this upon the Inactivity
and weakness OF his deputy Assista ant
District Attorney. Edward 3. BroRan.
whom. he said. he had to ufEe continu-
ally to bring the cases he had inyesti-
gated to trial, and whom he finally re-
moved because he had not been success
full In doing 80.
Mr.. Brogan idignantly denied this last
night. and said that Judge Swami had
never urged him to take any action In
regard to the bureau, but had persis-
tently ignored his attempts to bring
about conferences between Judge Swami
and the governors of the Stock Ex-
change. which Brogan hoped would. re-
suit In plan Of campaign that would
drive many Of the financial wolves from
the street.
Judge Swami said that his appoint
ment OF two of his best assistants Mr..
Dooling and Mr.. Kilroe, to succeed Mr..
Bregan showed that he intended to pros
ecute these financial fraud cases with
all his power and that he would keep at
them It'll the bitter end, and IL II took
all summer" He offered to open his
bOks to the public and to show the way
In which complaints against stock brok-
ers and promoters had been handled and
the results OF his investigations.
Denies Failure to Prosecute.
Mr.. Swami said that although there
had been little action by the bureau in
the last eight months prosecutions and
Investigations of crooked brokers and
promoters had not ceased, but that such
cases had been distributed among other
members Of his stan because Of Mr..
Brogan's failure to act, or because of his
illness. which kept him from the bureau
for many months. Judge Swami could
not recall. however. the name of any
stock broker or promoter whp had been
| indicted or arrested in that time with
the exception Of George Graham Rice.
You know" he said, there are 1 5000
cases in the District Attorneys ONCE.
and could hardly be expected to keep
track OF them all or remember the
names OF the cases. Those will be given
to you, however, II you wit ask for
| them at my office. The entire working
! Of the bureau is open to you, and 1 will
be only too glad to show what we have
done to suppress these men, SO far al
lies within our power"
When Judge Swami was asked why II
was that nothing had been accomplished
In this direction. though he knew the
city was full OF crooked stock promoters
and their suppression was one of the
things which he had advocated in his
prediction pamphlets. he said the rea-
/ M ina alxsA - -
legal complications, and added that
Mr.. Brogan Is a nice man. but
| Among the sections of the penal law
which relate to the prosecution OF stock
brokers IL section which shows how
| brokers can be prosecuted for doing bust
ness after they know they are insoi-
| vent. This Is one of the methods which
| Brogan says he urged upon Judge Swami
as means of getting indictments and
| convictions against men whom IL had
been impossible to reach in other ways.
The section provides that any broker
who accepts business after he knows he
liz insolvent may be prosecuted. and Is
| similar to the banking statute which
| provides that banker who accepts
| funds after he knows he is insolvent
| may be prosecuted.
This was contained in a report which
Brogan says he gave to District Attor-
ney Swami personally, and which he felt
to be one Of the best ways of reaching
| dishonest brokers.
Never Knew of Penal Provision.
81 never saw these reports of Mr.
Brogan which you speak Of" said Judge
Swami. Il do not know of any such
| statute"
He went up to his library and got out
copy Of the Penal Law and when the
statute was pointed out to him said
that he had never seen It before. and he
was sure that Mr.. Brogan had never
called 1t to his ttention. In his report
to Judge Swami Of March Is. 1918. soon
after he took charge Of the bureau. Mr.
Brogan said
! IAN examination of the books of the
twenty odd failures Of brokers during
the past two years will probably dis
close violations of this section: II this
section IL enforced the time has passed
| when broker can open an office, reap