The New York herald., 1922-02-20
Continued from First Page.

attention of the District Attorney
which does not reveal an echo of
trouble from distant places. To so no
further back than last Thursday-the
same day the Anderson, Brown & Co.
trouble became public-one finds the
case of MacMasters & Co, 50 Broad
street, who were expelled from the
Consolidated Stock Exchange on a
charge of bucketing.
Examination into the affairs of that
concern has not been completed, but
already it has been revealed that one of
the sucker lists" of that house con-
sisted of the roll of school teachers in
one Of the largest neighboring cities.
How much, IL any, those school teach
ers lost has not yet been ascertained,
but it is known that some Of them
availed themselves of the 'opportuni-
ties" offered by MacMasters in GER
tain oil stock which now is about as
inactive as any stock we'll could be.
The story Of the three Boston brok-
ers, fleeing from Massachusetts, under
charges of larceny and fraud, who sur
rendered last week in White Plains, af-
fords another illustration, but examples
of this sort could be multiplied almost
without limit.
Philadelphia and Pittsburgh appear
to be peculiarly attractive to the
bucket shop operators. Usually the
first place in which a New York
bucket shop opens branch is Phila-
delphia, and Pittsburgh follows second.
OF course, all bucket shops in other
cities are not branches of New York
concerns by any means. Many of them
are local, and operate ostensibly on
quotations obtained directly or indi-
rectly from local exchanges.
But In Philadelphia the newspapers
recently have been full Of the doings
OF bucket shops, just as have the news
papers of New York. In the city Of
Brotherly Love the feeling against the
ravages of these robbers has run so
bigh at times that public Indignation
meetings have been held in efforts to
drive them out.
Dispatches from Pittsburgh show
that Harry II. Rowland, the District
Attorney there, has his hands full as
result Of bucket shop operations.
He told THE New YORK HERALD that he
has had his investigators busy for
months rounding up evidence against
suspected concerns. Mr.. Rowland said
the work there is not yet in position to
be discussed in detail, but that the
reports being made by his investigators
were very encouraging.
In Detroit the local stock exchange
has declared war on the bucket shops
Jacob Nathan, president of the ex-
change, said that the organization is
preparing to place staff Of investiga-
tors in the field to ferret out bucket
shops and obtain information upon the
extent Of their operations. The De
troit exchange has the cooperation of
the Michigan State Banking and Sc
curities Commission in it's investiga-
ton. Prosecutions are expected soon.
Entire Country Aroused.
In short, it appears that not only
New York, but the entire country, is
aroused to the dangers in the bucket
shop operations, and widespread eff
fort is being made to stamp out the
evil
der the leadership of Seymour Crom-
well, it's president, began nationwide
campaign a number of months ago to
use the farreaching connections Of the
New York Stock Exchange against the
activities of dishonest stock and bond
brokers'. Not only are the Exchanges
own investigators sent to distant cities,
but the representatives of exchange
brokers and banks in all parts of the
country are cooperating with the Ex-
change in this effort. The results of
that campaign already have become ap-
parent in the Exchanges discontinue
ance Of ticker service to bucketing con-
Germs and in a number of bankruptcies.
Most New York bucket shops prefer
out of town accounts to New York ac-
counts, and there is one bucket shop in
this city which, it is! said, will not
handle New York account, but ac-
cepts out of town customers exclu-
sively.
The reasons for that preference are
clear:
First. The out Of town man usually
is easier to land for big sum than
the New Yorker, and largely for the
psychological attitude set forth in the
beginning of this article.
Second. The element OF time in
volved in the distance between New
York and the faraway town operates
distinctly to the advantage of the
broker who wishes to perpetrate a
fraud upon his client.
Third. The element OF distance makes
the operations of the bucket shop
much safer for the crooked manipula-
Tor.
Fleeing Methods Varied.
The methods Of the bucket shop in
Fleeing citizens of distant places are
as varied as the methods used locally.
of which the complaints to Joab II.
Banton, District Attorney of New York
county, and the indictments by the
Grand Juries. recently have supplied
such illuminating samples.
OF course, it must be borne in mind
that the bucket shops Sucker list" Is
not confined to New York city, but in
cludes prospects in all parts of the
country. Remember also that the long
distance telephone and the telegraph
wires are used almost as freely as the
local telephone. Telephone bills not in
frequently run into thousands of dol