New-York tribune., 1922-02-28
Four More
brokerage {,
Firms h all
( Continued from naee onel

or March 6 why he should not be 70
ssraincd from disposing of certain Sc
clrities that had come into hls hands
as receiver. The securities which
F,ncv demands include 5000 shares Of
Mexican Railway preferred and 200
shares each of lnterborough RNWd
Transit Company and Santa Cecilia
Sugar
Cotton Investigation
The proposed investigation INTO the
affairs Of the American Cotton ~
change. set for Thursday. District A.
torncy BaNton said, resulted from corn
plants made against tho exchange and
two of its member Roso & Go. and
Suaarman & Co. tho latter concern
being bankrupt. District Attorney Ban
ton arranged for John D6e' hearing
before Magistrate NcAdoo attel OH
Gals Of the exchange demanded yes
terday that they % permitted TO an
swel the insinuations and charges
OF buckcting. which. they asserted, were
hurting the business Of the exchange
IN the South, where Il oad large
clientele.
Those Who conferred with N' Bsn.
ton we're A. W. Graham, president Of
the exchange, Albert MASSEY, attorney
Of the exchange: George Gordon Rattle,
representing members Of the exchange,
who had been complained against. and
p p. Smita. president Of the Clearing
House ASSOCIATION Of tho exchange.
Mr. Banton described the forthcon-
ing hearing as an enquiry into accusa-
tions of bucletiNg ln cotton.
Upon receiving word that Federal
Judge Hand had refused the restrain
ing order asked by the Dior interests,
Mr.. Banton said he would take immc-
diato stops to gain possession OF tn"
hooks. He regarded the decision Of the
court as highly important. because. he
said. he planned to look into the books
Of certain other bankrupt houses IN
order properly to investigate criminal
comp aints Of irregularity.
Fight to Retain Books
In asking chat the District Attorney
be enioined counsel for tho nlor com
nany conteuded that to permit hlm tc
have the books would be a violation o'
the constitutional rights Of bankrupt
p Frank Shrimpton. former genera
Office manager Of Dior {. Co, was wit
ness Yesterday in proceedings before
Seaman Miller referee in bankruptcy
having for their purpose tho tracing
Of the disposition of assets OF the dc
funct firm and asccrtaininc the caus'
of the failure.
Responding to questions by William
Abrahamson. attorney for Manfred Y
Erich. receiver of the company, Shrimp
, ton said he did not know there wor
hu-dreds Of persons who charged the
had purchased securities from Dior
c. which we're not now IN the hand
Of the receiver.
! '1a sav securities were used unlaN
fatty he testified, 1T was mists X
by a clerk.
! about the failurc Of Dicr ( Co. ShrimF
ton said
. "Pullinc out tic ticl.ers by INC NJ
? York Stock Exchange, which cause
| the start OF the ron. and The heaN
! withdrawals Of many stocks. making
. necessary to throw over securities 2
: the bottom of the market"
Many Withdrawals Shown
\ He added that about S750oo0 IN vit}
! drawals were made by customers deg
the firm during this period
= Shrimpton denied there was any &,
= crecy on his part in leaving New Nol
y for Canada after the failure Of tn
company Replying to questions cor
corning his own personal finances. II
t said he was worth between $4,000 an
$4,000 Hc laughed a the assertio,
which he said he had read in newspi
pers. to the effect that he was wort
= S2oO000 and that he owned a ranc
: and considerable real estate
{ Edward Mccormick. president of th
: New York Curb Market, in d statemer
: yesterday, denied reports that man
= firms whose affairs have been place
in the hands Of receivers recently wei
: mem hers Of the New York Curb.
! For information of the public" h
q sad. Il desire to state that since jar
uary J 1922, the only regular member
suspended in this exchange for failul
y to meet their obligations were r.
mussen & Co. and W. Z. Drisben & Co
Judge Mulqueen in General Session
yesterday reduced the bail of Harry I
.owy, stock broker indicted on
charge Of grand larceny. from $4,000
to 50 600. He consented to the bail r
ducnon on Lowy's plea that his WI