The New York herald., 1922-06-01

other houses which are members OF ex-
changes.
Such a arm was r.. %. DER a Co.
There N another firm which has not
failed. but it's ability 20 keep going IL
one of the mysteries OF the street" as
one broker put a. How Dier did bust
ness has been pretty well shown In the
bankruptcy hearings. He had a broker
on the Consolidated. Percy Thomas.
who has disappeared.
This other firm u older than DER 4
Co. and It's methods show rather more
inesse. II does actually buy and sell
stocks for it's customers. but. accord
ing to those who should know, II crosses
sales by the wholesale.
Firms such as these. which. following
the new fashion In bucketing. must buy
and sell stocks. have to utilize the
exchanges from time TO time. and they
do utilize both exchanges as the hear
ings In bankruptcy will show. In this
connection attention Is called TO sec
tion IL OF Article Ill. OF the bylaws
OF the Consolidated. which reads:
Amy member OF this exchange who is
interested in. or associated in business
with. or whose Office il connected
directly or indirectly by wire. or other
method or contrivance. or who shall
knowingly execute any order or orders.
directly or Indirectly for any organiza.
tion. Arm or individual engaged in deal
ing in differences or quotations on the
fluctuations In the market price OF any
commodity or without a bona fide pur-
chase or sale of said commodity or
security in a regular market or ex-
change. or with any firm or in
dividual who has been expelled from
this exchange. shall, on conviction
thereof. be deemed to have committed
an act detrimental to the interest and
welfare OF the exchange. or of obvious
fraud or false pretense."
The marginal title TO this section Is /:
mo Business for Bucket Shops or Ex-
pelled Members"
Trades Crossed Now. Is Charge.
Yet on high authority 1t may be said
that there are specialists operating on
the floor of the Consolidated Exchange
who have made large sums carrying on
just this sort OF business for firms out
side OF the Consolidated which deliber-
ately and almost brazenly cross sales.
1t is no uncommon thing for the spe-
cialist to get an order at 10 80 for in
stance to buy 100 shares OF United
States Steel for n firm. and at 10: ~ 10
same stock for the same firm.
The effect on the specialist Is a happy
one. He collects a SIS commission for
buying the stock and another sis for
selling. The firm outside pays him this
commission. IL charges the customer the
same rate.
1t mae therefore be seen ;hat the new
form of buckcting, involving the actual
sale or purchase OF stock for the sake Of
the record. necessitates operations on
one or another OF the exchanges. except
where sales may be effected privately.
Obviously. then. IL the Consolidated
vigorously enforced the rules which have
been quoted in these articles Il could
stop bucketing by and through its mem
bers. What Is perhaps more important.
IL could. by the same rigorous enforce.
ment OF rules months ago. when the
market favored the bucketshop opera
tors, have prevented the wholesale
mulcting OF the public in which many OF
its members. now bankrupt. INDUCED.
1.-THE nth article wiH appear TO-
morrOic in THE NEW York HERAID.1
THE NEW YORK HERALD has received
a. letter from the brokerage house Of
Simmons & Co. 81 Exchange place.
which reads in part as follows:
TN your issue, dated May 2S. 1922. I
notice the name Of Simmons 4 CO. as a
failed concern publishgd among others
on the front page OF your paper and
reference Is made to such firm as being
member of the Consolidated Stock Ex-
change.
MY firm at the present dime II the
only firm bearing the name OF Simmons
G. Co. with membership on .he Consoli-
dated Stock Exchange. and II IN manifest
that your reference to the firm of sim
mons & CO. can only mean the firm OF
which / am a member"
The letter Is signed with 'hc firm
name and "By l.. NJ. Simmons"
In the table which THE NEW YORK
HERALD printed with its article on the
Consolidated Stock Exchange on Monday
appeared the name simmons & Co. -
Pine street" There was no mention of
the firm of Simmons & Co. 81 EN-
change place" and the reference was
not to the latter firm with which l.. NJ.
Simmons is connected.
The fir mthat failed. according 20 the
petition in bankruptcy filed last Janu-
airy, was composed OF BENJAMIN jacob
son. Jacob Frank and David" sim
mons, the petition alleging that tho
name David" was fictitious. An error
was made in saying that this firm had
membership in the Consolidated Es-
change. IL had not.