The New York herald., 1922-06-29
FULLER HAS STRING
ON STOCK ACCOUNTS
Continued from First Page.

with to Fuller. Further provision is
made for setting up plea of Immunity
should the books by any chance fall
into the hlnds OF prosecuting officer.
The whole thing is carefully worked
out elaboration of the process used in
the case OF another bankrupt Consoli-
dated house. S. s. Ruskay & Co. In
that case verbal stipulation OF a gen.
eral nature respecting the constitu-
tional rights of the bankrupt was made
at the time the books were turned over.
and the Federal District Court has held
that the stipulation was binding.
In the der case an attempt was made
TO set up the plea of constitutional
rights after the books were in the hands
Of the receiver. but 1t was non-effec-
tive. the United States Supreme Court
holding that the District Attorney had
q right to the books.
That the stipulation In the Fuller case
worries District Attorney Banton was
evidenced when he issued statement
saying 1t evidently was int ended to pre-
vent his examining the books. He went
on to say that the stock exchanges had
been proclaiming their desire to aid tn.
These men know that in order 10
prosecute successfully a broker accused
or bucketing or trading against his Gus
tom ers' accounts, or of kindred crimes
defined by law. or Of larceny growing
out of misuse of his customers COL
lateral. the books OF the broker are abb
solutely necessary"
Mr.. Banton pointed out that the rem
edy lay IN the bill killed in the stat.
senate last winter on the strength of
a, telegram from Seymour L. Cromwell
president of the New York Stock FIX.
change. to certain OF the State SEN
ators." He lamented the fact that the
exchanges had not established a rule
that brokers. before admittance TO IN ,n-
bership. sign a waiver of their ,onstit,,-
tional rights with respect to the exami-
nation of their books.
Schreiber Has Way In Pro...,&.
Mr.. Schreiber did not seem TO he IN
entire accord with Mr.. Banton's views
for he said:
Notwithstanding the fact that we are
apparently barred from getting the
DOCKS OF ruler & Co.. we viii begin at
once investigating with the purpose in
view of trying to gather sufficient evil
dence OF criminality. II any exists. and
presenting such evidence to the Grand
Jury. We are hopewell that we can
prove charges made withou. the books
think We have found method. There
nave been several complaints made to
this office against this firm"
The recent mail received at the Fuller
offices, 1t was learned, contained many
complaints OF failure to remit amounts
due, showing tha. customers had been
pressing for money. Then, too, there
was steady stream Of visitors to the
offices OF the attorneys for the receiver
Most OF these people wanted to learn
what the assets and liabilities were, and
no one knows that at present. unless II
is Fuller & MCGEE, both of whom. Il Is
understood. are in the city. Their law
yer. Moore. said he had nothing to add
to what had been said in the statement
of the previous night.
Last October the Fuller firm had
assets estimated roughly at $4,000, 900
and about 5000 customers. The num-
Der OF customers has fallen off consid-
erably. and. while the assets are possibly
s1,000,000 now, II Is not thought possible
they will prove TO exceed that figure.
Losses for 800 I'm Philadelphia.
Special Dispatch TO TIE New York HERALD
PHILADELPHIA. June 2S-As the re-
suit OF bankruptcy proceedings fled in
New York yesterday Samuel Stras-
bourger and T. Ewing Montgomery were
appointed ancillary receivers OF Il. NJ
Fuller & Co. stock brokers. who had
local offices In the Widener Building.
Judge Dickinson in United States
District Court appointed the ancillary
receivers and fixed their bond at $1,000.
No information about losses of the $50
oil nt- ~