The New York herald., 1922-03-10
DESCHAMPS BROKERS
GO TO TRIAL MONDA.
Three Accused by Man Who
Bought Firm Are First
Into Court.
j. L. ROSS & co. FAILS
Bridegroom. Back From
Honeymoon, Arraigned
in Gardiner Case.
TWO MORE ARRESTS MADE
Banton Insists McAdoo In
quiry Be Confined to Cot
ton Bucketing.
TWO MORE ARRESTS MADE

The first trial in the present prose
cution Of brokerage frauds was set
yesterday for next Tuesday. Two
brokers were arrested, another ar
raigned and the brokerage firm of J.
l.. Ross & Co. OF 1880 Broadway was
forced into bankruptcy.
Three brokers will be the first to
be tried of the many who have been
indicted since the start of the inquiry
by the District Attorneys office into
fimsy stock firms They are George
Markelson of S3S Riverside Drive,
Isadore Friedman OF 1865 East Fourth
street. Brooklyn, and Samuel NJ. Small
Of 1925 President street, Brooklyn.
They are out under $4,000 bail each.
James J. Wilson. Assistant District
Attorney, said the case involved al
legged thefts totaling s250,O0O The
complainant. Alphonse Deschamps, a
contractor, OF i91 Fairfield avenue,
Hartford, Conn.,, said he had pur-
chased a brokerage firm from the
three men in February. The concern
had offices here, in Hartford and
Montreal Canada.
Deschamps accuses the men. who con-
tinued with the firm as his employees,
with "bucketing" orders and trading on
their customers. He said he discovered
that the practice had been going on for
a long time and that customers had been
fleeced out Of approximately $260.000.
He became alarmed lest he would be
held accountable for the swindles and
caused the arrests.
Mr.. Wilson said that Canadian au-
thorities are anxious to obtain custody
of the men. 1t is understood the British
Consul-General here has received extra
dition papers.
Ross Firm Said to owe 100000.
When the involuntary petition against
the Ross firm was filed in United States
District Court creditors said the liabil-
tiles were $4,000 and assets $4,000.
The three signing the petition We're Saul
Margolies. Samuel Viner and William G.
Donohue. Judge Learned Hand appointed
Bertha Rembaugh receiver.
The governors of the New York Stock
Exchange announced the suspension OF
Webb. Lee & Co. for failure to meet its
contracts.
The two brokers arrested on bucket
ing" indictments we're Arthur WIKI OF
1856 Hooper street, Brooklyn, and David
#. Blum of 1895 Madison avenue. who
traded under the name OF Arthur Wilk
& Co. so Broadway They were arraigned
before Judge Grain in General Sessions.
pleaded not guilty ana were heid IN
S. 900 bail each for trial
The indictments against them were re-
turned on March 2 on testimony Of j.
T. jackson of Asheville, y. G., who
charged failure to make good $3.50 in
Liberty bonds furnished as collateral
with an order to buy stock. Other COM
plants against the brokers amount to
$4,000.
Another Held In Gardiner Case.
Arthur +. Evans of 246 Emerson
place. Brooklyn, arrested wednesday II.
connection with alleged frauds on David
Gardiner of the brokerage house OF
Franklin. Taylor & Co, 81 Exchange
Mace. was held in $500 by Justice
Wasservogel for a hearing. Evans was
indicted on February ?, with Samuel
IT Greenfield and FIVE others connected
with the same firm, charged with grand
larceny.
Evans was found by the police In his
Brooklyn home after returning from
honeymoon. The indictment says he
swindied Mr.. Gardiner, who lives at 3
East Eighty-third street, out OF s6s,Ooo
by gold brick" methods.
Jerome Simmons. Assistant District
Attorney, will have six or seven wilt
nesses to present to the John Doe In
vestigation next Monday into cotton ex-
changes. brokers and firms. These will
include officials OF the two exchanges,
the American Cotton and the New York
Cotton Exchanges. brokers and en-
ployees of brokers.
District Attorney Banton showed he
is still emphatically opposed to making
the inquiry too broad. In this he IS in
conflict with Chief Magistrate William
McAdoo. who said he wanted 70 seek
out every phase OF the cotton industry.
Mr. Banton said he was opposed 70
wasting any OF the $4,000 contingent
fund allotted to him for the year.
Mr.. Banton denied that there was any
friction between him and Mr.. McAdoo.
Benjamin r. Schreiber, another Of Mr..
Banton's assistants, said complaints
continue TO be sent TO the District At
torney In increasing numbers.