New-York tribune., 1922-02-11
Bucket Shop
l'allds Put at
2 ; NIiI1io on
Compartments Eli! Court
az Banton Names = More
Assistants to Help In
vestieate 30 Companies
Grand Jury Hears
Stories Of Losses
SubpmnaIssued for Book $
and Records Of Amer
ican Cotton Exchange

=
District Attorney Banton assigned
Two additional assistants yesterday TO
Investigate thirty brokerage firms,
most Of them defunct. and to prepare
for Tie grand jury evidence submitted
By hundreds of victims of alleged
bucket shops Previously he had de-
tailed three sistants to the work
He took this action when IT became
apparent that the investigation would
assume wider proportions and that the
losses involved would reach a very
largo figure.
The corridors OF the Criminal Courts
Building were thronged with COM
plainants vno charged they had been
iefrauded by stock rnanipulators. Sew
eral Of the cases were presented to the
grand jury by Assistant District At
.orrey jerome Simmons and a number
II witnesso testified. The presenta-
ton Of bucket shop complaints to the
rrsld iUry, IT was announced. would be
Continued on Monday " Wcdnes sdav and
Thursday of next week. and the in
quisitorlal body IS expected to reach
eoncirsions IN tho initial cases in about
Two weeHs
Vrile the grand Jury was in session
lncien c. Breckenridge. q former AS
slstsn. District Attorney, appeared on
Neaalf of soy erty-f'Nc alleged victims
Of brokerage house. Detective Ber~
aard A. Flood. & the District Attorneys
oihee was sent to the Office Of the coz
eern Wit instructions to seize the
books and records. lie reported to AS
sistan' District Attorney Simmons that
he had been unable to get them.
Among those who went before the
grand Jury yesterday was Mrs. Sadie
Nelch. widow Of Joe Welch. Il former
COMEDIAN. She said she had been
swindled out Of $1,000 by q concern IN
Wall Street.
Mr. simmons said that 5000 900
would ho conse ervative estimate of
The los=es n alleged failures and fraud
glent transactions II the trading dis
tr.ct.
"Propsri," stock Kept on Hand
According 20 Mr.. Simmons. ono Of
me schenes practiced by the bucket
shop operators was to satisfy investors
demanding 10 ba shown their stock by
displaying property stock kept on
sard ior the purpose. lie related the
experience of IN investor who, doubt
fui as % whether q brokerage firm had
actu-ly bought tho stock he ordered,
called at the brokerage Office and asked
% see it,
The Investor was shown certificates
'er tie l,1o0 shares OF stock he had
ordered ard Went away content Later
'e called or p friend, a specialist in
odd lots of stock IN Wall Street, who
took from his safe the identical certifl-
Gates the investor had seen short
time before and informed him that the
concern he had dealt with bought the
snare for the occasion and d soon as
ne was gone sold them back again.
IN connection with the investigation
., the American Cotton Exchange. OF
u broad Street, Nj. Banton said an
suator would be named to examine the
oooss and records Of the exchange
1le!imlrary steps TO get access to the
u0oSS Nr BautoH said. had been taken
N 'Ne issuarco OF district attorneys S
Subpoena.
Two complaints and four supporting
sMqaVits alleging irregularities al the
xx3cAangs nave hcen filed with his Office,
Mr. Banton ssld.
y, fierce. managing partner Of
=. a. housman 6 Co. Of 90 Broad
sFeet' and Louis Brooks. governor
" me New York Cotton Exchange,
sal,eo on Mr, Banton and presented
.sclS winch they considered would be
y. assistance IN The pending prelimi-
csy es.y myesrlgarion Of the American
No'lon Lxcharge
Graham Issues Statements
7. N statement issued last nigh. A.
". ~. Graham, president of the American
.os'on ENchange. took exception to the
ossStemsnt "a II nc District Attorneys
Soacs that she hooks Of the exchange
...e been sESnoeraed. Assistant District
Hs"erney Wilson said the subppnas is
~ s'u a. 10 the exchange were in the form
~,request subpnnas."
tA'' 1.aham said no officer of the ex-
nG;snse had been subppnaed by the
,s.lict n.sct Attorney nor had any books or
tsers r. - or the exchange been seized by
,rl I hplssrlct Attorney. This would be
,JL"y unnecessary, he said, since the
;iiesinee "as anxious to suppress any
eal s,.;. transactions and took the same
f.s.suoe f.ya that the other exchanges had
IN TINS respect.
ssJ,Hpiaining his version Of the steps
Ar,..S ~ tv tns inNeStlSatlOn Oh Che
b..silcan bsrs Cotton Exchange, Mr.. Gra-
'aia M continued:
Several weeks ago a member of the
dis.rcan div.ican cotton Exchange failed under
srs..fessing circumstances. This failure
nrnss.so'llaaticaily suspended him from
bi,,v,s.toefship. bv n He was afterward tried
~ ~ sae beard of directors and expelled
unss member Of the exchange. 1t was
wssefstood wss that the District Attorney
fba ' making some investigation into
tbs s sna,rs Of this former member Of
rss, exchange and the exchange i'm
to to'u.isaleiy offered 20 submit it's books
eys Sae District Attorneys Office for
eSSssnlhation. The officials of the cx-
w;tsse and lta attorneys have conferred
sssis '" Nlr- Wilson and Mr.. Simmons.
Al ati'aAt 81, district attorneys, and have
ss,s .! Iilnes beer ready to furnish them
syc, 'h'ormation that the books of the
sryad srdd"ge might disclose, and have
pessaahe ssa the District Attorneys Office re-
sn;si to send an accountant to ex-
has me books of the exchange. This
H~.nno nnos been done up to the present