New-York tribune., 1922-06-30
Fuller Failure
ToBe Taken Up
By Grand Jury
Liabilities Estimated at D
Millions. hut Assets May
: Not Yield 3 Gents on the
! Dollar. Is One Estimate
Mexican Oil Is Blamed
District Attorney viii De-
mand Books TO Learn De-
T tails of the Disa ster


District Attorney Banton said yester-
day that be- would issue a subpoena ior
The books Of (. ". Fuller & Co.. the
Consolisated Exchange house which
Jailed on Tuesday with Liabilities osti-
mated a, s5.oO0.OO0. as soon az The new
General Sessions grand jury assemblies
rex, week. This jury will be sworn IN
on Monday and will meet for business
on Wednesday.
Although tho books seem 20 be guard
ed from criminal invostigaiion oy an
si,..ight stinuia;ion winch the Fuller
at,orrcvs obtained from the rece iver
and his counsel before the records
were surrendered. Nr Banton said ne
xvould 90 after them nevertheless.
ndoubtcdiy this demand tor tne
hooks under subpnna viii result IN an
snnlicatior % the Federal court o. on
Ie,n the District Attorney Mr.. Ban
Ton said. "out ] viii be glad 20 Begin
the fgh. In the Federal courts as soon
as possible
Complaints Pouring In
v-ancis l.. Kohlman, of counsel for
Judge Samuel Strasbourgcr. said that
the receiver bad nothing 20 do win
anv evidence Of an alleged business
which tho books of thg concern might
sCrnish. ~
at rs the duty % the receiver MI
Kobinan said. "tO collect the assets
and he was advised by his counsel 70
sign tho stipulation. Tho receiver mas
no desire nor has ne the power, 70 IN
Ausnce any criminal prosecution. MS
obiiesttou is clear and definite ana he
will perform that obligation 10 the
letter" .,r-...
The District Attorney said that more
complaints had been received YESTERDAY
from former customers Of the fulier
firm who had 0st money or securities
IN the failure. Some of these came bY
mai and othcrs were made personally.
An were referred 90 Assistant District
Attorney BENJAMIN 7. Schrclbcr. Who'
Win Assistant District Attorneys
Thomas J. ~. Goraty and william r.
McKenna. viii conduct The .nyeauga-
ton.
Notwithstanding the assertion OF
William g. Silkworth, pres .cent o. tne
Consolidated Exchange. that g.. .nTc 10
overtake the rapid rise ot Mexican
petroleum.. In which the Fuller firm
was spoculltng had brought about ihe
crash. James J.. Moore, attorney ior
the bankrupts. denied any knowieage
Of speculatior il this stock. II u4ier
had made such an admission. or j the
Office records showed ti Mr' moore
seemed 20 know nothing about u. he
did. however fal in line with recent
suggestions for reforms.
The only remedy for present condi-
tions in Wall Street Mr.. Moore sa.a'
ass 20 put brokerage houses under lhe
same sort Of supervision that applies
20 state and national banks. Brokers
are fduciar.cf. just as banks are
Brokers should be forbidden 20 specu-
late on their ovn accounts.
Poor Customers the Victims
E. Griswold Bourne, public account
ant. who was present 800 Judge Stras-
bourgcr's Office with attorneys Tor botn
+be receiver and the banrupts ycster.
dav. said that. so far as his searcn OF
the Fuller stronghoX had proceeded
lftlc hut one. FIVE. ten and other small
iot certificates had been found among
tho securitice lie was not prepared
20 estimates the total value o. the se'
curiftcs. which hc said would take =
week or Two 20 lst The size Of The
cer.ifcetos mentioned bears out ihe
abatement that the failure falls on peo'
pie Of slender means.
Altogether yesterday rcsearche'
tended 10 darkcn rather than brighter
tha creditors prospects. One estimate
Agured them 40 about three cents on
the dollar
Securities for collateral. checks fol
margin and letters Offering new busi
ness 20 the bankrupt company conun
ued 20 come In yesterday, even tnougf
news Of the failure has had time q
get 10 the furthcst reaches Of th'
newspaper mali and telegraph. Aloni
with them. however. are letters an'
;elcgrams making inQuiricf ard de
rnands for immediate closing OF ac
counts and return 90 scclrilc5 IRON
hundreds of customers who have
learned of the disaster 10 would rc
Quire a large force Of clerks % ore'
them expcdit.'lsly, 10 was said at th'
receiver Office.
Whatever assets there may be u
other cities VIII be- properly protected
Carl J. Austrian, associated with Nh
Kohlman. said yesterday Hc wou.
not estimate the out-of-town assets
but said that ln Boston there W.
thought 20 be O. bank account of $500
and in Philadelphia one of $500. j
addition there are probably some Sc
eurities. be said.
Blames Mexican oil
IN Chicago Federal Judge Carponte
refused 90 appoint e. receiver rnt' th
proper document arrived lrom Nc'
YORK. lie GAIA ho wished 90 avoid ar
pointing a receiver in Chicago if pos
sible. so that Che assets could bo take
over by Judge Strasbolrgcr here. y
application has been made in Pitts
hurgh or Boston for receivers, as loca
attorneys have taken charge. Jlde
StrashourCcr viii act as receiver o.
Philadelphia and Newark.
Mr. Silkworth repeated yesterda