The New York herald., 1922-11-17
BROKERS USED BOY
AS FULLER Dummy
J. H. Braid Tells How
Bankrupt Traded Against
Customers Accounts.
ORDERS NOT EXECUTED
Member of Consolidated EX-
change Merely Kept Track
of His Commissions.
ETHICAL, LAWYER SAID
Alleged Victim of Bucket Shop
Operations Listens at Trial
! of Accused Man.
ETHICAL, LAWYER SAID

J. II. Braid of the stock brokers'
firm of Braid & Vogel, 80 Broadway,
members of the Consolidated Stock
Exchange admitted blandly before a
jury in General Sessions that he had
entered into agreement with Edward
NJ. Fuller of the bankrupt stock firm
OF Z. NJ. Fuller & Co. to allow the use
of his name in order that Fuller might
trade against his customers accounts.
Braid was the star witness before
Judge Robert S. Johnstone in the trial
of the second of thirteen indictments
against Fuller in connection with
stock transactions. the second being
an accusation of operating a bucket
shop.
Braid. whose testimony gives him
immunity from prosecution. said his
only concern in telling his story was
what the board of governors of the
Consolidated Stock Exchange might
do to his firm as a result He was
summoned to appear before a COM
mittee of the exchange yesterday af-
ternoon. but was unable to respond.
Franklin l.. Link. gray haired
lumberman of Westmoreland Tenn.
the complainant. sat silently and listened
10 the story of how Fuller paid Braid
for combinations of his orders to buy
and sell which were never executed.
No stock Actually Bought.
Braid said he entered into the agree
ment with Fuller last summer at Full
lcr's suggestion. with the understanding
that he was TO receive commission
OF 81 per 500 OF stock ostensibly
bought or sold, though he protested that
Fuller ought to have paid him s. per
hundred. The arrangement lasted six
weeks. he said. IL was briefly this
Fuller sent to Braid each day a list
OF orders from his customers to buy
stock and list OF his orders to sell
stock. Braid executed no orders, but
permitted Fuller to use his name on con-
firmation slips which he sent to his
customers purporting that Braid
had bought or sold the stock as ordered
Should a customer then call upon Fuller
to know IL he actually had bought the
stock. he could say that he bought il
through Braid. and a call upon Braid
would apparently confirm that statement.
a the end of the day a balance wa
struck between the value OF the stock
Of the stock IN the sales column and
Fuller sent Braid check for the differ
cnce. Braid deposited the checks and
at the end of the week totaled the
weeks transactions and deducted his
commissions on the So basis from the
money represented I'm Fullcr's checks.
Braid then drew out the remainder in
n. check made out in favor Of u. Green
berg, boy in Fullcr's cashiers cage.
und tac Greenberg check eventual iiyl
found It's way back INTO the Fuller bank
account
Worked ON Lawyers Advice.
The money remaining IN Braid's ac-
count above the commissions due hin,
was sent back 10 Fuller g. Co. through
the Grecnbcrg boy. without reference to
any balance between the buy and sell
stock columns. the whole purpose OF
striking the balances during the week
apparently being 10 provide n means
whereby sum 20 cover Brald's COM
missions would be available BY that
means the money 81 Fuier's customers
wis not tied up N the stock ordered.
Braid testified that when he entered
into the agreement Fuller assured him
fhat Tho Fuller firm was sufficiently
nrone financially to "take a position"
against iis customers and that. there.
fore, the arrangement would ho p,t-
fccfiy snfe Ne anid a,so mat Fmilcr
tofd him d. had BEN advised by h'a
lawyer thaf such an Arrangement wa
orfirels ethical
~ was aFkod whether De- though. he
wns Ninlafn4 thc lhw or the rules OF
the Consolidated stock ESchnnre but
ths court sustained an objection a. the
question
tt Developed that the reason Funn-
chiertfi fn nixiuG Braid more than 81
rcmniseiur NaF hscnuse h wns "onla a
mNffrr " huuitkrsriuN" nmd. therefor,
upt worth mnrp Braid apparently got
h's raF fur even icrs service thnu that.
fnr hf testified fhnf 81 kept absolutely
W reNufa Hhafftff 20 fhe Fuiitf ffane-
Hrfiuna fnffanf ttun shown ~ Gre daily
iis'H nf ht Hn3 egil ordcFa anf fhst
those NilnH ufn fUsfrHftsi
ifHii esHa he Hss.rra as m.nln 81 clear
rtHt tNe nwanefmenf waa exclusively
NtfNfu MiHiHtif nnl tHr Fullrr hnusf
ani tha hif nrm dd nni hate ans hanl
On thf ifarnHffl1rs w shaft in tte COM
n sHlfnH uhsf Frirr q Cn pnld