The New York herald., 1922-05-25
SAYS BUCKET TALE
Led TO EXPULSION
Wilson Was Dropped by
American Exchange At
ter Seeing Prosecutor.
DELIVERIES . SCARCE
Had to Buy Cotton at Loss
in n. Y. Exchange in
Such Cases.
CASE OF l WIN, YOU LOSE
Partner Backs Story That
Brokers Entered Pit Just
to Give Air of Trade.
CASE OF l WIN, YOU LOSE

William B. Wilson, former member
of the American Cotton Exchange,
testified yesterday at the trial of the
exchange. which is charged with vio-
lating the anti-bucketing law, that he
was expelled without hearing after
he had informed the District Attorney
what was going on, and that George
W. Pratt, the secretary of the ex-
change. had suggested to him that in
stead of telling the District Attorney
the truth he pretend ignorance.
This testimony was brought out
ceedings. in the course of which Will
son withstood grilling by Albert
Massey, who, with George Gordon
Battle. is conducting the defense. On
admonished by Justice Marcus for
continually interrupting the witness.
Wilson testified that he frequently saw
cross trading going on at the exchange.
and that at times there were as few as
two brokers in the pit, giving the place
an air OF business. while actually doing
nothing but cross trade. Under the con-
ditions that prevailed. he asserted, 1t
was impossible to conduct legitimate
business. He said he had known Of in
by telephone from a customer. to tele-
phone reply to the effect that the or
der had been filed when, as a matter OF
fact. they had not even taken the
trouble to look at the quotation board.
Had to Buy mt Loss.
When. as infrequently happened. Gus
for delivery of the cotton. the witness
said the broker had to buy the cotton
through the New York Cotton Exchange,
and generally take a substantial loss.
'It was plain case of l win, you
lose" said the witness. referring to the
relations between the brokers and their
customers.
Mr.. Massey, on cross examination.
asked Wilson IL the exchange did not
have rules governing the transaction OF
business and Wilson snapped back.
ut had book full OF regulations that
were never lived up to. IL that's what
you mean"
For the second time the witness said
he had bucketed orders. He admitted
that he had been expelled from the ex-
change and that because of the action
had brought suit for s250,000 damages.
How can you crook and gam
bier he damaged by expulsion?" asked
Mr.. Massey.
That's for the court TO decide, not
me " the witness retOrted.
Under redirect examination by Hugo
Wintner, Assistant District Attorney.
Wilson said he was expelled because he
had made a complaint about the ex-
change and then had been called to the
District Attorneys office.
He told of a conversation he had had
with Pratt. the secretary OF the ex-
change, prior TO his visit to the District
Attorneys office. Pratt asked him IL he
was going to tell the truth. He replied
IN the affirmative. Then. he testified.
Pratt said to him.
Cant you say you didn't know
Preferred BucketfnE.
James II. Watson. Wilson's partner,
also was called as witness He said
fatty that most of the brokers on the
American Cotton Exchange would sooner
bucket orders than trade legitimatev
for the reason that they made pmore
money. Before going into partnership
with Wilson, he said. he had been en-
ployed by r. l.. Patton & Co. cotton
brokerage firm. now bankrupt. Watson
testified that this firm bucketed fully
75 per cent. of its business by the cross
trading method. and that while in the en-
ploy of the firm she never had been called
on to consummate sale or purchase
Of cotton. The business was pure
speculation.
It was while the cross-examination
of Watson was In progress that Justice
Marcus found II necessary to rebike
Mr.. Massey for interrupting the witness
Several times as he was making answers
Watson was stopped by a sharp inter-
lection from Mr.. Massey.
Mr.. Massey at one point In the pro-
ceedings asked the Justice TO declare
mistrial. Mr.. Wintner had put on the
stand Jesse w. Enrich. receiver for the
bankrupt firm of Patton & Co The books
of that firm had been subp9naed by the
District Attorney, but not produced. Mr..
Enrich testified their production had
been stopped by the attorneys for the
bankrupt. who had obtained restrain
ing order from United States Judge
Julian W. Mack.
Mr.. Massey contended that the firm
Of Patton & Co. Is absolutely solvent
and that the receivership Is an un-
friendly proceeding. He moved for
istrlal because Enrich had been ex-
mistriai because Enrich had been ex-
Justice Marcus denied the motion.
The trial will be resumed this morn
ing.