New-York tribune., 1922-02-25

the dcfunct brokerage house OF Il. D.
DER & Co. He WAS informed that the
decision would be Forthcoming within
few days.
NEW BRUNSWICK. N. j.. Feb. "a
]. Madison Godbee was convicted yes
terday of obtaining money under false
pretenscs while operating bucketshop
here.
Last summer Godbee opened what
was ostcnsibly brokerage office.
MANY accounts were started with him,
among them that of Henry Nelson, Of
New Brunswick, who testified in the
trial before Judge DAILY that he gave
Godbee $50 with which to purchase
five shares Of Ajax Rubber and five Of
American Steel Foundry. The total
cost was to be $50 and Nelson was to
pay $40 month. Tho witness said he
had never heard Of the completion of
his transaction.
Charges Of Embczzlcmcnt
Godbcc is also charged with en-
bozzlemcnt William II. Nelson, of Me
tuchcn. testified that he gave the de-
fendant 800 shares of Silver Hill Mn
ing Company stock, authorizing him to
sell it and open an account. Four other
charges of obtaining money under false
prctenscs are pending against Godbcc.
PHILADELPHIA, Feb. "a Plans
were LAID to-day to conduct a campaign
on bucketshops by committee of rep
rosentativcs of the Philadelphia Stock
Exchange, Investment Bankers Asso-
citation, Pennsylvania Bankers Asso-
ciation and the Philadelphia Associa
ton Of New York Stock Exchange
Firms.
Addressing the Business Science
Club on the subject to-day. Wcrrv C..
Thayer, chairman Of the Philadelphia
Association Of New York Stock Ex-
change Firms. said the only way in
which the investor can safeguard him
self from bucketshop operations is fo1.
the prospective purchaser of stocks
and securities TO confer with his bank
on the standing OF rnc firm he would
nave dealings with.
state licenses for brokers. as a
remedy to correct dishonesty and fraud
that may creep into -.ock and security
dealings, we're advocated by John s.
FISHER State Banking Commissioner
IN an address before the City Club to-
day
Blue Sky Laws Needed
This, he said. raised the question
of blue sky" legislation, which he de
scribed as one of the most difficult and
complicated problems with which the
state has to deal.
MIR Fisher explained tnat there was
a. present commission for the re
vision of the banking laws Of Pennsvl
vania. and declared that he would take
1T upon himself to call the attention of
the commission to the need for protcc-
tive legislation, which at the same
time would not hamper legitimate in
dustrial enterprise.
Inc Commi ssioncr also suggested
rigid supervision by the State Bank
ing Department. or some other depart
ment to be formed, OF the business
operations of brokers and investment
bankers
WASHINGTON, Feb. 24.-Attorncv
General Daughterty and William Hav-
ward, United States District Attorney
for The Southern District of New York.
conferred here or recent failure among
New York brokerage firms. Mr.. Daugh-
erty SAID later they went over the Sit
uation to see if there were any Federal
interests involved.
The Department OF Justic had no in
tention of duplicating prosecutions bv
the state, Mr.. Daugherty declared. max
ing it clear that it has been keepinr
an eye on the financial storm which has
swept a number of New York firms into
bankruptcy, principally because these
hrms have customers throughout the
United States.
The Attorney General indicated that
as yet no violation of Federal law has
been specifically found.