The New York herald., 1922-05-27
ANOTHER BUCKETING
BROKER CONVICTED
Goldberg Obtained Woman's
$500 Life Savings in
Phantom Deals.

Another former member of the Con-
solidated Stock Exchange was convicted
of grand larceny yesterday in the Cour,
of General Sessions as a result of the
campaign against bucket shops follow
Ing revelations in THE NEW York HER
AID OF bucket shop conditions. He is
Nathaniel Goldberg. 80. of TAO West
End avenue. known also as Giles who
induced Mrs. Antoine Tardier. a mil
liner of % Murray street, Elizabeth
N. j., to turn over to him $500 In
cash and stock valued at $4,000, which
represented her life's savings, as col
lateral for phantom stocks. Earlier In
the week In this court Howard Z. Stan
ley. former member of the defunct firnn
of Miniter, Norden g. Co., was convicted
of bucketing.
Goldberg was in the brokerage busi-
ness at 80 Broad street Morris II.
Panger. Assistant District Attorney,
prosecuted him and he was defended
by Clark Jordan and Randolph NJ.
Newman. Testimony was introduced to
show that Mrs Tardier spoke with
Goldberg at his office on March 22.
1921. and that he advised her to put
up twenty-six shares Of Cities Service
common and money as collateral on a
trading account. On April 10 she heard
the brokerage firm was not in good
financial standing and went to Gold
berg and demanded her money and her
stock. She got neither. Goldberg went
into bankruptcy the following day.
Mr. Pange- traced the S1,500 and
showed that il had been deposited In
Goldberg's personal account and that
the stock had been hypothecated
through Wade. Templeton & Co.. mem
bers of the New York Stock Exchange.
on April 2. 1921. and deposited by him
to his own account. 1t also was shown
that money of customers had been used
as collateral for five trading accounts
carried by Goldberg and his firm.
At the trial of the American Cotton
Exchange before Supreme Court JUS
tice Marcus yesterday Hugh Wintner.
Assistant District Attorney, rested for
the prosecution. Albert Massey and
George Gordon Battle. counsel for the
exchange. then made a motion that the
case be dismissed.
Mr.. Massey said that no crime IL
charged In the indictment, and that the
prosecution had presented only testi-
mony of accomplices, which. he held was
not sufficient to make case against the
exchange. So far as the exchanges
clearing house acts were concerned, he
I Sdfu, tiliS VI was q wi PcAe'eiNi'
without capital and therefore was not
responsible for the acts of others. Mr.
Wintner interposed to say the ndict-
ment charged the exchange with the
crime of bucketing in that II permitted
illegal transactions to be carried on In
building owned and operated by 1t.
Mr.. Massey said the exchange is com
posed of 500 members and that the presi-
dent, Augustus Graham, formerly was a
jurist in North Carolina and one time
Speaker Of the House of Representa-
tives. He said the exchange would
prove itself innocent through reputable
witnesses instead of the gamblers anc
confessed crooks" produced by th'
prosecution Justice Marcus denied the
motion, saying the questions were fol
the jury TO decide.
Joseph s. Levy was the first witnes!
called by the defense. He said his earl,
life was spent on plantation In Missis
sippi and that he could qualify as an ex
pert IN cotton matters and also coulc
| testify to the conduct of affairs on cottor
| exchanges. Mr.. Levy defended the
actions OF the brokers on the American
exchange as legal and said 1t had re
ceived the approval of the United States
Department OF Agriculture. He said rule
governing trading on the American ex
change were more strict than those o.
the New York Cotton Exchange. A
this roint Justice Marcus declared al
adjournment until Wednesday.