The New York herald., 1922-03-17
BUCKETING CHARGED
TO 12 COTTON MEN
in MADOO FINDINGS
Chief Magistrate Sends His
Presentment to Dis
trict Attorney.
BANTON ACTION TO-DAY
He Can Go to Grand Jury or
File Accusations in Open
Court.
EXCHANGE HAS DEFENSE
Secretary, Directors and Bro
kers Accused, but President
Is Immune as Witness.

Chief Magistrate William McAdoo
completed the John Doe inquiry into
the affairs Of the American Cotton
Exchange yesterday afternoon at 2:30
o'clock. Before sunset he had trans
mitted to the District Attorney pre-
sentiment recommending complaints
against the officers and directors of
the exchange and six member brokers,
charging them with operating bucket
shop.
The list Of brokers is open to in
rant Witnesses in the John Doe in
ouiry are immune.
The Chief Magistrates presentment
leaves it in the discretion of District
Attorney Joab II. Banton to refer the
entire situation to a Grand Jury or
make complaints before a committing
Magistrate.
The presentment involves at least
twelve individuals. several of the
brokers specified being also either Of
ficers or directors of the exchange.
The individuals involved are:
RANDOLPH ROSE, Sr.. as vice.
president, director and broker.
RANDOLPH ROSE. Jr., as broker.
G.. w. PRATT, as secretary and a
director.
RAYMOND PALMER, as director
and a broker.
A. T. JENNINGS. as director and
q broker
MARTIN GoULKo. as director and
broker.
ISRAEL GoULKo, as a broker
s. j. OLIVER, as a director.
w. S. FORBES OF Richmond, Va, as
director.
]. d. WHITAKER, as director.
Il. l.. PATTON, as a director and a
broker.
LEONARD C. COCHEU. as a broker.
A. w. Graham, president OF the ex-
change and formerly North Carolina
Judge, is among the immune through
having testified at the John Doe inquiry.
Mr.. Graham had offered to take the
stand and waive immunity. but jerome
simmons. Assistant District Attorney,
said he desired to preserve the rule of
extending immunity to all those called
TO the stand.
Others who testified, thus gaining i'm
inunity, were Samuel Lanlecker, A. J.
Watson and W. b. Wilson. formerly
brokers on the exchange; Howard
Thayer, formerly board boy of the ex-
change and Charles C. Hardy, secretary
OF the American Cotton and Grain Clear
ing House Association.
Arthur r. Marsh of the board of gov
ernors of the New York Cotton Ex-
change against which. however. no
charge is made in the presentment, also
had testified.
Case Before Bnnton To-day.
Magistrate McAdoos presentment ar
rived at the District Attorneys office too
late for consideration. but will gain the
cfficial attention of Mr.. Banton this
morning. Mr.. Simmons said he could
not discuss the case until he had con-
fcrred with Mr.. Banton, who was out of
the city last night
What direction the matter will take
cannot, of course, be forecast. 1t ap-
peared to the expectation among at
taches OF the Chief Magistrates offices,
however, that the matter would go TO
the Grand Jury rather than before a
magistrate.
Such a course would be a telling blow
to the hopes OF attorneys for both the
brokers and the exchange, who made a
the close of the hearing to ask the Dis
trict Attorney. If action were taken, to
take the complaints before a magis-
fratc that the defense might cross-ex-
anime prosecution witnesses in public
Magistrate McAdoo informed them at
the time that the question of procedure
would have to be left UP to the District
Attorney.
Hint OF Big ScnIe Bucl<eting.
The presentment Of Magistrate Nc
Adoo, IL sustained by action of the Dis
trict Attorney. opens up an entirely new
and startling phase OF the bucketing
ravagcs on the public recently exposed
by THE NEW YORK HERALD.
So far only the operation Of bucket
shops fleeing the public through stock
transactions has been touched on. The
field offered for that sort VI fraudulent
dealing Is regarded as probably of more
Importance In some respects than that
OF stocks, inasmuch as fluctuations are
greater and usually more rapid. while
the speculators, as a rule, have their
chances for acquaintance VITA the con-
dition OF the market greatly lessened
by the matter of distance and lack Of
facilities.
The testimony at the John Doe in
ouiry showed that nearly the entire
clientele OF the American Cotton Ex-
change brokers resides In the cotton belt
In the instance of the American Cotton
Exchange, II was shown that the quota
tions on which business was done were
received second hand by telephone from
the basic board OF the New York Cotton
Exchange, so that the brokers OF the
American Exchange were dependent on
figures not authorized.
After outlining the law on bucket
shops and setting forth his reasons for
believing that law had been violated on
the American exchange. Magistrate Nc.
Adoo entered into a severe denunciation
Continued on Page Three.