The New York herald., 1922-03-15
80 P. G. BUCKETING
In COTTON CHARGED
Continued from First Page.


eral associates undertook 10 organize
semi-political clubs within tho exchange
to obtain n new regime and a regenera-
tion of business morals, with the result
that he got himself expelled.
Selling Previously Arranged.
The finger crossing system was de-
scribed yby all substantially as follows:
An order comes in from the South to
an American exchange broker for the
purchase of cotton The broker goes
into the ring and looks at the New
York Cotton Exchange quotations ana
offers to buy at the last posted figure.
Getting no offer to sell he raises his bid
successively until he feels he has gone
as high as he dare on Nhis customers
money--four or five points above the
New York quotations--and on his next
bid holds aloft his crossed fore and mid
die fingers. Another broker with whom
he has a specific or standing prear-
rangement catches that signal ana IN
response holds UP his crossed fingers
and cries ''Sold !"
At the end OF the days business the
crossed" orders are made out IN
bought and "sold' slips, one trans
action going into the brokers' books az
the execution of his customers order
corded In a dummy account. These
registrations make everything look all
right In the records of the American
Cotton and Grain Clearing House, so
that the customer hasn't chance TO
discover tho buclosting of the order.
No cotton Is actually bought. and. ac-
cording to testimony, none can be
bought except in small quantities on
rare occasions.
Landecker testified that he had
crossed orders with the Following Amer
lean exchange brokers:
Patton e Co., Schaap Bros. Dough-
erty & Russell: A. T. Jennings & Co,
and was asked by Randolph Rose. Jr.. to
cross trades with him but he refused to
accommodate him.
Says Some Run Two Houses.
The prearrangement plan, 1t appears,
occasionally was varied by the expe-
dent Of one broker organizing two
houses for Crossing" his own trades
Wilson testified that Pratt. secretary
Of the exchange, had asked him to call
on Randolph Rose. Sr., and when he
did so. Rose made him the proposal Of
organizing a firm to take care Of Roses
cross trades. Rose, he said. was to
furnish the office, put up $4,000 capital
and allow Wilson a drawing account
against a percentage OF the profits.
Immediately after he turned down the
proposition. Wilson continued, Palmer
& Co. was organized with Miss Ma
nasse. who was connected WITH Roses
office, as a partner in Palmer e Co.
Wilson also testified that he had seen
orders crossed by Jennings. Patton,
Ebln, Anderson and Martin. Martin,
be explained. Is the name used for
business purposes by Martin @. Gulken
and added that Gulken had told him
that Anderson g. Co. was organized to
take care of his cross trades.
Wilson said he had filed written
complaint with Pratt against Martin,
but that nothing ever came ~ Il. so far
as he could learn. He added that SAM
uel Schaap stated openly that he could
rot make any money except by bucket
ing and he proposed to continue to do
so, soon after which statement he was
elected a director of the exchange
Wilson and Watson stayed in business
as brokers on the American Just one
month, then became so disguested be-
cause they could make no money with
out bucketing that they paid Off all
their accounts and announced their with
drawal from the exchange. That was
last February rs. On February 10 the
directors of the exchange met and Eek
PEELED" them.
"Often No Cotton for weeks
Watson testified that every time 1t
looked like he actually was going to
be able to buy some cotton for his GUS