The New York herald., 1922-08-03
court BARS BANYON
FROM FULLER BOOKS
Judge A. N. Hand Upholds
Stipulation Against State
Prosecutor.
4 BANKERS INDICTED
Details of New Bucketing
Case Are Concealed Pend
ing Arrests.
BOOK TEST TO GO HIGHER
Appeal Planned From Hands
Decision-Present Charges
Are Not Affected.

The defunct Consolidated Stock Ex-
change broker house OF E. NJ. Fuller
& Co.. the members Of which are un-
der indictment for bucketing, won the
first round of its fight to keep its
books away from District Attorney
Banton yesterday but prosecution un-
der the indictments will not be hin
dored and the District Attorney will
appeal the ruling on the books to the
United States Supreme Court.
Coincident with the setback for the
District Attorney in the Federal Court.
the Grand Jury In the Supreme Court
returned five indictments against four
stock brokers and warrants were is
sued for their arrest. Four Of the in
dictments charge bucketing and one
grand larceny. It is expected the men
will be apprehended to-day, when their
names will be made public.
In the Federal Court Judge A. N.
Hand granted the motion of the at
torneys for Fuller and his partner.
William F. MCGEE to restrain the re-
ceiver, Samuel Strasbourger. from de-
livering the books to the District At
torney. The Fuller people. in turning
the books over to the receiver. stipu-
lated that they should not be given to
the District Attorney. The success of
this procedure, so far, is believed to
make certain similar moves by law
yers for other firms in the financial
district whenever a failure occurs.
Judge Hands Ruling.
After reviewing the stipulation which
the Fuller lawyers obtained from the
receiver. Judge Hand said
1T is argued that this court is with
out Jurisdiction to grant the relief
prayed for and that the question must
be raised in the State courts. ] do not
| think this Is so. The books got into the
po session of the receiver with all the
bankrupts' rights reserved and the re-
ceiver only held them to aid his civil
administration. When 1t is meant to
use them In criminal proceedings, they
are the property of the alleged bank
rupts. Upon such a subpoena for use in
i
see that the bankrupts run no risk OF
losing the privilege which was guaran-
! teed upon their surrender of the books
and that their contents are not dis
| closed to the authorities intrusted with
enforcing the criminal law. The only
way to be sure that this is done is to
see that they are retained. The motion
is granted"
AS soon as he heard of the decision
Mr.. Banton declared he would appeal
Immediately. He contends that a Fed
| eral court does not have the right to re-
strain a State officer from obtaining
evidence TO present before the State
courts.
New Complaints Affected.
He explained that indictments had
been found against Fuller and his part
ner without the aid of the books, and
that his chances of obtaining convictions
on those indictments would not be
| hindered through lack OF the records
| Other complaints against the Fuller
| firm, he said, were dependent upon his
| inspection OF the books
| He added that he hoped to be able
to obtain legislation when the State
Legislature next convenes that will dc
away with tho necessity for him TO &c
4 to court about any examination OF the
books of a defunct brokerage concern
that is under criminal suspicion.
The United States Supreme Court will
not hold sessions until october. so that
although the appeal will be entered at
once there can be no action upon II for
| some time.
Benjamin f. Schneider. Assistant Dis
trict Attorney in charge of all bucket
shop work. has received complaints re-
Gently to the effect that office managers
and other subordinates OF bucketing
brokerage houses have been assisting
the heads of the concerns In their
bucketing operations. He said the
| publicity given TO the illegalty OF
bucketing has been such that these
men must know they are violating the
llaw. He intends. he asserted, to prose-
cute these employees unless they aid
him In obtaining evidence against the
responsible persons.