Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1922-02-10
INVESTIGATING FAILURES
OF BROKERAGE HOUSES

New York, Feb. s-The grand jury
today commenced an investigate into
the reasons for failure Of a number Of
brokerage houses accused Of bucket shop
operations. Cases Of alleged frauds were
presented by the district attorneys office
in cooperation with the attorney gener-
ais offce.
The United States district attorneys
office, 1t was stated, also Is co-operating
in the Investigate ton.
More than twenty-five firms are to
come under the grand jurys scrutiny, 1t
was said. and dozens of customers who
lost heavily through their failure will be
asked to testify
Assistant District Attorney Simmons.
who Is presenting the evidence to the
grand jury, said he could not estimate
with any accuracy the amount of money
lost by investfros as a result Of shady
dealings. Indications were. however ne
said, that the figures would run well into
the millions.
Hundreds of complaints have been re-
ceived by the district attorney and the
United States attorney from persons who
lost their investments as result of the
series OF. crashes in the financial district
Mr.. Simmons said books and dccu-
ments Of several of the bankrupt firms
have been seized and are being examined
0I2C-
tees.
The latest instance Of this kind was
the seizure today, on duces tecum sub
poenas, of the books OF the Amei fcan
Cotton exchange. Allegations have been
made that several firms which are mem
bers of the firm have been guilty Of
'bucketing' orders
Officials of the New York Stock ex-
change and the Consolidated exchange
are co-opera ting in the efforts to clean
up Wall street.
probably would consume two weeks or
more. and predicted 1t would result in a
! large number of indictments
canvass showed that reputable Wall
street houses welcomed the inquiry as a
means of ridding the financial district of
long standing evil. the harmful effect
of which recently was under discussion
by stock exchange officials The cues
| ionabie character Of some of the opera
| tons brought 10 their notice resulted in
a warning being sent to members o. the
! exchange to guard against business con
| nections with brokers of doubtful stand
| ing both here and IN other cities
| It was estimated by one prominent
banking firm that last year investors
! throughout the country had been swim.
| died of approximately 500 100000 in
! the bucket shop game. More than two
| score Of brokers and firms designate ed
as commission houses" in New York
have experienced financial difficulties in
! the last two months, almost each case
| being attributed to reckless or fraudulent
! onerat;ons. Many Of them. bankers said
| had been forced out Of business by the
| recent improvement in the stock market
! upward price movements seldom beins
, profitable to bucket shops
Wllfred Nulveny, a stock broker. SAID
70 have tfaree offices IN Boston, was ar
rested tonight by Police Inspector Con
nelly of that city on 2 warrant chargint
| him with being a fugitive from justice
His home is in Brookline, Mass
Inspector Connolly said Mulvenv wa
sought on indictments alleging stool
manipulation involving $4,000. Their
are more than forty complainants.
Financial frauds in the merca ntil
field, in addition to the BROKERAGE busi
ness investigation. are also Included f
the probe District Attorney Bant-n an
nounced tonight
Cooperation in this phase of the In
vestigation, he said. had been promise
by the Merchants Protective association
: which has pledged Itself that none Of It
! members will accept restitution in liet, a
criminal prosecution