New-York tribune., 1921-02-24
Inquiry Begun
Into Charges OF
Aggwi Bear Raid
kosofsky Confers With the
Assistant District Attor-
ney, Who Summons Wit
nesses 10 Appear To-day
Stock Advances 4 Points
Pool Charge Denied by Vause
& Black; Loss on Ships
Estimated at 10 Million

Aaron Kosofsky, of 662 Sixth Avenue,
who charged Tuesday that he had evil
dence of bear pool in Atlantic, Gulf
and West Indies steamship stock, was
closeted for some time yesterday with
Joab II. Banton, Chief Assistant Dis
trict Attorney.
Mr.. Banton announced he would sub
pocna to appear before him to-day
several witnesses whose names Mr.
Kosofsky furnished They are A. r.
Nicol, president of the company; a.
II. Montgomery, a trader; former State
Senator Loring G. Black and w. Ber-
nard Vause, law partners, and several
others. Kosofsky said he overheard
Black talking to Montgomery on the
telephone about the alleged raid on
the "Agwi" stock. Black was alleged
to have phoned from the branch brok-
erage office of E. F, Leland & Co.,
Forty-second Street and Broadway.
Mr.. Black also called on Mr.. Banton
yesterday at the Criminal Courts
Building. He denied all knowledge of
the matter.
Vause & Black sent a letter to Mr..
Kosofsky yesterday regarding state
ments reported to have been made by
him connecting them with the recent
decline in the shares on the Stock
Exchange.
The letter read:
There has been called to our atten-
tion statements in various newspapers
had some connection with the stock
of the Atlantic, Gulf and West Indies
Company.
We expect to know from you i'm
medlately ly whether or not these vari-
Gus statements are properly set forth
as having come from you"
Both Mr.. Black and his partner, Mr..
Vause, repeated former denials that
they knew of any concerted movement
to depress the value of "Agwi" shares,
either directly or indirectly, Mr.. Black
said his firm had undertaken an in
vestigation of the "Agwi" incident and
intended to learn why its name had
been drawn into the talk of an alleged
bear pool.
On the Stock Exchange and in brok-
erage offices the latest reports concern
ing the Atlantic, Gulf & West Indies
Company were the main topics of dis
cussion. Although the authorities of
the exchange would not admit that thew
were Investigating the reports OF a
movement to raid the stock, it was
learned elsewhere that members had
been requested to send in all recent
III oIiHaIiOn IN tnelr possession regard
ing transactions over the last few days.
At the company's offices, II Broad
way, Mr.. Nicol declined TO add anv-
thing to the statement already issued
by him, but it was limited that another
statement night be issued to-day after
meeting of the board of directors. 1t
IS understood that at this session of
the board the question Of continuing
payment of dividends on the preferred
stock will be taken up.
1t was admitted at the Offices of z.
+. Leland & Co, members of the Stock
Exchange, with Offices at 81 Broadway,
that Kosofsky had been customer at
the Forty-second Street branch. The
manager of the office, who declined to
give his name, said, however, that the
firm had in no way been connected
with bear drive on ''Agwi" shares.
Estimates yesterday as to the paper
loss the Atlantic, Gulf & West ln4ies
Company now has on $4,000 dead
weight tons of tankers ordered, ct ap-
proximately $3.50 ton, placed the total
at about $12,OO0O0O figuring that these
vessels could bring S125 a ton. 1t was
explained, however, that some of these
vessels leased to other companies have
already earned for the company in the
neighborhood OF $2,000,00O
The shorts in "Agwi" showed a dis
position yesterday to cover their COM
mltments, and at the close of the stock
market session the stock had advanced
to 9s, net advance of a. points.