The New York herald., 1922-07-13
GEORGE S|LKW0RTH
WAS FULLER AGENT
Brother of Consolidated
President Acted for Firm
on the Floor.
TWO GOVERNORS QUIT
designations Were in Pro-
test at Failure to Inves-
tigate Members.
GRAND JURY GETS CASE
GRAND JURY GETS CASE
Banton Springs Surprise by
Not Waiting for Books
Held by Receiver.

New light bearing on the latest re-
volt within the membership of the
Consolidated Stock Exchange appeared
Yesterday in the disclosure that the
floor representative of z. M. Fuller &
Co., which recently failed for $5,O00.-
900, was none other than George Silk
worth, younger brother of w. S. Silk
worth, president of the exchange,
whose management and policies have
lately been under heavy fire in meet
ings of the governing committee of
the exchange.
In entering general denial Of re-
ports that there was an insurgent
movement afoot among members of
the exchange and it's board Of gov
ernors who were demanding the resig-
nation of the president and his as
sociates in the management w. S.
Silkworth stated a week ago that there
was no truth in the report that a rela-
tive of an officer Of the exchange had
been an employee Of the Fuller firm.
While this statement was technically
correct, yesterdays revelations estab-
lished the fact that the two members
of the firm of e. M. Fuller & Co. never
appeared on the floor of the exchange
and that virtually all their trading was
transacted by the younger brother Of
the president Of the exchange.
Further inquiry uncovered the fact
that two members of the board of gov
ernors resigned late in May in protest
against the policies and management of
the Silkworth contingent and the at
board to the ways and means committee
the blame for the failure to investigate
several firms before they failed.
Two Reject Open Place.
James A. Gillies. one Of the governors
who resigned. also resigned the chair
manship of the ways and means COM
mittee. and his action was supported by
tn eresignation Of w. L. Webster as
governor. - s;
One of these vacancies was filled
through the appointment. OF supporter
: OF Mr.. Sikworth. The other seat on
the board remains open owing TO re-
lection of the appointment by two mem
bers to whom 1t was offered.
Thus 1t appears that the revolt within
the membership had come to the boiling
point even before the failure of e. NJ.
Fuller & Co. The resentment of the con-
servative element on the exchange was
t,. ip0
the personal integrity and business prac-
tices of members of the exchange whose
records became public in the court pro-
ceedings which followed their failure
Among these were the firms Of e. D.
DER & Co. and Hughes & DER. which
were shown by the evidence in the bank
ruptcy hearings to have been bucketing
orders. .
Reform Faces Hard Fight.
The board designations were followed
by an informal meeting Of members or
the exchange, many of whom were on
the governing committee at which de-
1nand was expressed for the ousting OF
the silkworth management and revi-
sion Of the rules governing the business
conduct OF fnemDtTS anu the duiiiiSoiOh
requirements Then came three meet
jngs of the Board OF Governors called
by a majority of its members over the
head Of Mr.. Silkworth. as president, to
consider reforms.
At the last of these meetings held
Monday recommendations were received
from the ways and means committee
calling for Tightening Of the rules COW
ering requirements for admissions to
membership and the disciplining OF
members found guilty of questionable
business methods. No conclusions were
reached and, according to the view pre-
xailing in many quarters in Wall Street,
there is small hope that the present
movement toward reform will succeed.
owing chiefly to the fact that the in
eurgents lack a leader or leaders who
are willing to accept the responsibility
OF treading heavily on those members
who would be affected by an alteration
of the management and policies of the
exchange.
Grand Jury Acts.
The Grand Jury yesterday began an
investigation into the affairs OF r.. NJ.
FulIer & Co. without waiting for Dis
trict Attorney Banton to get possession
of the company's books, which are be-
ing held by the receiver under stipu-
Iation that they shall not be turned
over to the District Attorney.
Argument relating to the turning over
OF the books was not heard yesterday.
When the matter came up In the United
States District Court on the order OBJ
tanned by Fullers attorneys restraining
the District Attorney, Felix Benvenaga.
Assistant District Attorney. asked for
"a delay to enable him TO file answering
affidavits, and the case was put over
until the next motion day. July %.
Meanwhile Benjamin F. Schreiber. AS
sistant District Attorney. had begun
the presentation of the case to the
Grand Jury. Six witnesses. all said 10
be brokers. were called Fuller a. Co..
81 is understood. had dealings with these
brokers. and the records of the transac-
tlons are available on the hooks OF the
witnesses. so that. as far as these par
ticular transactions are concerned. Il is
not essential that the Fuller books be
used
1t was ascertained that there is a big
brokerage firm in the financial district
which owes Fuller &c Co. approximately
$4,000 in cash.
Justice McAvoy In the criminal
branch of the Supreme Court granted
weeks extension % time TO L. d. Dier
and Harry J. Lawrence, Jr.. 10 change
\ their pleas Of not guilty or to make mo-
Nns in regard to their indictments.