New-York tribune., 1922-06-08
Cotton Change
Is Found Guilty
AS BucketshOp
Jury teaches Verdict in
American Board Case in
an Hour: the Maximum
Penalty Is Fine of S5, 900
Sentence Imposed To-day
Decision Is Warming to ''Un-
derworld of Finance"
Says Prosecutor Wininer

The American Cotton Exchange was
found guilty last evening by a jury
in the Supreme Court on an indict-
ment charging the bucketing Of cotton
orders on the floor OF the exchange
The jury was out one hour The ex'
change is subject 20 a fine not exceed
ing $1,000, the law providing that upor
second conviction the charter Of The
organization shall be forfeited. Sen
tence will be pronounced to-day.
During the trial before Justice
Marcus testimony was given for the
prosecution by several former mem
bers Of the American Cotton Exchange
who described the alleged bucketine
practice and also what is known IN
the market parlance as "cross trading
Prosecution Called Conspiracy
II was the contention Of the defense
that the prosecution Of the American
Cotton Exchange was the result Of a
conspiracy on the part OF certain mem
bers Of the New York Cotton Exchange,
a rival organization. 10 crush the de-
fendant. and that former members OF
the American Cotton Exchange who
gave testimony against il were parties
10 the so-called conspiracy.
Decide the motive OF these wit
nesscs." said George Gordon Battle. IN
summing up for the exchange. sour
claim Is that il was induced by a con-
spiracy on the part OF Louis Brooks
a governor of the New York Cotton TX
change, with the witnesses themselye,
and perhaps other persons He added
that a verdict Of guilty would mean
ruin to the small cotton planters OF
the South.
Mr. Battle called attention TO che
fact that not a customer had been
called by the prosecution and that II
was not shown that single customer
had made complaint against the eN'
change.
Hugo Wintner. Assistant District Al
torney, who prosecuted the case, de-
scribed bucketing as most sinister
crime" He said that 30 per cent OF
the crime in this city is prompted by
greed and ayarice.
"Nlght Royers in Finance
Mr.. Wilmer characterized the ex'
change members as might royers in
dnance." He added that 80 or 90 per
cent Of the brokers would prefer to
do a legitimate business, but that they
were victims of the system. He re,
minded the jury that the exchange and
not an individual director or member
was on trial. at has no soul 20 be
damned nor body TO be Kicked said
the prosecutor, "and the only punish
ment you can mete out 20 IL is your
condemnation by a verdict Of guilty
so that the word can 80 forth 20 the
underworld Of crooked finance In order
that the unwary shall not be heeced by
those who have followed the livery oil
brokers'"
In beginning his charge Justice
Marcus read to the jury the provisions
OF the law under which the American
Cotton Exchange was tried and en-
planned is intent. He also defined
what is a reasonable doubt, advising
the members Of the jury that any such
doubt must be decided in favor Of the
defendant.
ne NOtt NV ANHtfA'
both the customer and the broker shall
intend a fictitious Transaction said
Justice Marcds. Before the amend
ment 20 this law the statute required
both customer and broker have such in
tention, but this has been changed, so
that now the customer may be entirely
innocent and may intend bona hde
and so long as the broker
intends 10 thwart n bona fde intention
OF the customer the statute is violated,
as FAR as the broker Is concerned.
Charges Cover One Year
"This indictment Is drawn so that
no particular instance Of bucketing Is
pleaded, but the allegation is made
that throughout the entire year Of 1921
up 20 she finding Of the indictment
these fictitious contracts were made
persistently and systematically TO the
knowledge of the defendant corpora.
tion which permitted such practice 70
proceed for all that period OF time
The several directors and members
OF the American Cotton Exchange, who
have been indicted individually on
charges Of bueketing, will be placed
on trial to-day.