The New York herald., 1922-02-11
BUCKETING SO HUGE
JURY'S WHOLE time
ISNEEDEDINNQUIRY
Losses Above $50,000,0 900,
According to Estimate by
District Attorney.
COTTON. BOOKS SOUGHT
Exchange Offers to Show.
Them and Prosecutor
Requests Them.
WEIGHS WIDOW. BILKED
WEIGHS WIDOW BILKED
Government Waiting to Act
OH Complaints of Using
Mails to Defraud.

DStGucC VI IiC SlSot huhOOh VI
complaints that have poured into the
District Attorneys Office about
buckcting by Wall Street firms the
entire time Of one of the Grand
Juries will be required to hear the
evidence in the cases. Losses by
the trusting and uninitiated of ap-
proximately s5O.OOO,oO are involved,
according to rough calculations yes
terday
All Of the bucketing cases probably
will go before one of the regular
Grand Juries by next week. 1t is not
thought advisable to have special
Grand Jury, but, as was clearly
demonstrated yesterday, the number
and importance Of the cases called to
the attention of District Attorney
Banton make their consideration
along with cases of other sorts quite
impossible. Practically no headway
was made yesterday in presenting
such cases to the Grand Jury.
One case promises to stand out
prominently. Vt is that of the Ameri-
street. 1t was learned yesterday that
two complanants had appeared against
this concern and mad made four af-
ildavits charging bucketing. As a re-
suit Mr. Banton, through his assist
ant. jerome simmons. sought to OBJ
tain possession of the books of the
company. Access TO all records was
promised. 81 stis ~
Exchange Books Requested.
In keeping with the regular custom,
what is known as a District Attorneys
subpoena was issued for tho books, di-
rectcd TO George w. Pratt. This form
Of subpoena is request. Usually.
when the request Is not complied with,
a Grand Jury subpoena, which is man
'datory. issues. No Grand Jury sub
psna has been issued, but the books
have not been examined and there is
some question whether an auditor sent
TO the Offices of the concern by the
District Attorney would be allowed to
make his own investigation.
The only way in which you can
prove bucketing," said Mr.. Banton in
discussing this particular case, "is by
an examination of the books. II the
District Attorney subpoena Is not suf-
fcient we will go before the Grand
Jury, have the books brought there
and examine them at that time. This
concern is charged by two complain
ants with buckcting; that is. of not
filling orders"
TO question on how much was in
volved. Mr.. Banton replied that It
would be impossible to tell, that
bucketing could be done with a small
amount, but that 1t usually ran into
many thousands of dollars. He de-
clined to make public the names OF the
complainants. He said the case would
be taken to the Grand Jury at the
earliest possible moment, but that he
did not believe it had been taken up
already.
Cotton Trading Defended.
officials of the American Cotton
Exchange showed deep concern over
the trend OF events. Two statements
were issued, one by the president, G.
w. Graham, and the other by counsel,
Albert. Massey of Seabury. Massey &
Lowe. Mr.. Graham's statement, which
referred to a specific matter. read:
I'm the issue of the New York World
OF February 10 there appeared an article
on the twenty-third page headed Ban
ton searches for Bucket Shops in
which 1t Is stated:
1.-THE only one OF these cases men,
toned Is that against the American Cot
ton Exchange. Inc, of No. 81 Broad
street. member firms OF which, the Dis
trict Attorney has heard. have been
bucketing orders Subpenas have been
issued for certain OF the exchanges off,
GERS and it's books and records have
been seized.
"The statement that subpnnas have
been issued for certain OF the exchanges
officers and its books and records have
been seized is entirely without founda-
lion. No subppnas have been ISSUED for
any officer of the exchange, neither have
It's records been. seized
You can readily appreciate the in
Jury done this exchange by the publica-
tion of such statements. and ask that
you give this statement as much pub
lcity as you did the article complained
Of"
The statement by Mr. Massey follows
Several weeks ago a member of the
American Cotton Exchange failed under
distressing circumstances. This failure
automatically suspended him from mem
bershlp. He was afterward tried by