The New York herald., 1922-02-28
CREDITORS SQUEEZE
4 MORE BROKERAGES
Three Declared Bankrupt and
One Assigns-Dier Co. to
Lose Its Books.
COTTON INQUIRY is NEAR
American Exchange Will Aid
Banton and McAdOO in
John Doe Case.

JOHN DOe case.
Three more failures in the financial
district, a ruling by Federal Judge
Hand which should prove of material
aid to District Attorney Banton in his
investigation of the affairs of E. d.
DER & Co.. an assignment to creditors
by a fourth brokerage concern and
the preparation by the District Attor-
ney and Chief Magistrate McAdoo for
a John Doe inquiry into the bucketing
of cotton orders to begin Thursday,
were the outstanding features yester-
day of the involved situation brought
about by the bucket shop disclosures.
The firms that were put into bank
ruptcy were:
MOSHER & WALLACE, SO Broad
way: liabilities. s175000; assets, $685.
600.
GAMBLE & YATES, SO Broad
street; liabilities, $4,000; assets not
stated
SHEWRY & FALKLAND, 1913
Broadway; liabilities, 100000; assets.
$25, 900.
/ G. w. Starbuck & Co. of 20 Broad
1 street made an assignment for the
benefit of creditors to Nelson M.
Cooper of 247 West 1o4th street. Ed
ward S. Griffing of 14o Nassau street
was said to be the attorney for the
assignees. He could not be found, but
the lone stenographer in his office
said she understood there was to be a
dissolution of partnership and that
there was no failure. At the Offices
of Starbuck G. Co., the members of
which were Calvin w. Starbuck and
Frederick w. Wright. practically all
of the fittings and furniture had been
removed.
Exchange Seeks Inquiry.
Probably the most important develop
! ment Of the day was the decision for
an open inquiry into the cotton brokerage
business carried on through the Amer
lean Cotton Exchange, which has been
under investigation by District Attorney
Banton for more than n week. The
books had been demanded by Jerome
Simmons. Mr.. Banton's assistant In
charge of this work, and the affairs of
several brokerage houses which did busi-
ness through this exchange have been
under scrutiny.
Mr. Banton said officials of the Amer
ican Cotton Exchange had suggested an
open inquiry. He told them this only
could be done before a magistrate. Ar
rangements were therefore made with
Chief Magistrate McAdoo and It was
determined that the inquiry should be-
gin Thursday in the Criminal Courts
Building.
Among those who visited Mr.. Ban
ton we're Albery Massey, representing
the exchange A. w. Graham, president.
and George Gordon Battle. Mr. Battle
| said he would like an opportunity to
| appear before the Grand Jury as the
insnuations and charges of bucketing
that were being made were injuring the
| exchange. which has a large clientele
In the South.
| ln0ICte0 FerbOns ELUSIVE.
No announcement was made OF any
action taken by the Grand Jury. This
| Is in conformity with the rule that pro-
hibits any announcement prior to the
apprehension of those, or some Of those
indicted II Is known, however. that
detectives attached to the District At
torney's Office have been active for the
last forty-eight hours, and that they are
having great difficulty in finding some,
of those they are searching for.
Additional evidence was presented TO
both the Supreme Court Grand Jury and
the additional Grand Jury The cases
! being considered. II IL understood. arc
Of more than usual Importance.
In the Dicr bankruptcy proceedings
z. ID. DER personally asked that access
to the books of the defunct company be
denied to District Attorney Banton.
Judge Learned Hand In a ruling in the
United States District Court denied the
application.
100000 bond for Receiver.
william J. Mosher and Forest w
Wallace constitute the Arm OF Mosher
G. Wallace, against which the petitioner
was the Gilbert O'Farrell Printing Com
pany, with claim for s911. Saul s.
| Myers Is attorney for the petitioner.
The concern operated on the curb That
It's business was considerable was indI-
Gated by the fact that Judge Hand In
appointing Louis b. wehle Of III Broad
way as receiver fixed the bond at s30.0 900.
The statement was made that the
failure was due In large part to the
failure of other firms which were in
its debt, TO the general unrest and to
the increasing demands from customers.
The Peerless Quality Company. with a
claim Of s51s. was the petitioning cred
itor against Shewry & Falkland, which
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