New-York tribune., 1922-10-10
Brokers Admit
Buclxeting, but
Escape Trial
Evidence Lacking Against
Shewry A Falkland, Now
rnt:ergoing Bankruptcy
After $500, 900 Failure
Partners Quarrel Barred
Tho Got Away With Funds,
Question That One on
Stand Wants Gone Into

A Arm Of stock brokers that admitted
bucketing operations and yet which
kas not been proceeded against by the
District Attorneys Office, because, it
was explained yesterday, insufficient
evidence had been presented, is that
Of shewry & Falkland, formerly of the
Consolidated Exchange, now passing
through bankruptcy. This firm is one
that was swept into the bankruptcy
inaeistrom last February, failing for
100000 and leaving its partners sur
rrised Mt their liabilities. As one of
shem put it, II didn't realize took In
that much money"
Complaint was made to the District
sttorney Of Nassau County last July
ly DR.. w. e. Wheelock, of Rockville
Center, L. l., that five shares Of Amer
lean Telephone and Telegraph stock
had been sold without authorization by
hewry & Falkland on February II,
end that he was unable to recover his
sGock or the money. District Attorney
Weeks of Nassau sent DIR. and Mrs.
Wheelock TO the District Attorneys
.ffice Of New FORK County. Assistant
district Attorney Geraty, writing to
sr. Weeks under date of July 81 last,
expressed the opinion that if any crime
Lad been committed it had been in New
York County.
The case seems TO have become
dead issue in the District Attorneys
chce, but some lively testimony came
cat at the bankruptcy hearings when
the partners, Charles William Shewry
snd Donald Falkland. were examined
notwithstanding the failure to find
sufficient evidence upon which to ask
.ae grand jury for an indictment,
shewry refused to answer certain ques-
ti1ns upon the ground it would tend
TO incriminate or degrade him.
Questioned Closely
"Did these houses" the bankruptcy
trustees attorney asked Shewry--men-
sioning Loucheim, Minton & Co. and
Sscor, We'll & Co.-"know you were
taking position with your custom
crs?"
Il don't know as they did," shewry
answered.
Don't you know that you told these
houses that you were taking a posi-
scn with your customers or not9"
II don't know as they asked me"
shewry replied.
You were executing all your orders
through these two houses :"
"ws were members of the Copsoli-
dat, a Stock Exchange and We executed
o,e3-s through them, too"
sEShey would know whether You WIRE
hpcketing or not?"
Certainly they would"
"Then they did know"
EYES," Shewry admitted.
He also stated that they did busi-
ness with Deery g. Co.. through Arthur
I.onefellow, who is now connected with
.he United States Shipping Board, at
45 Broadway. And again:
Didn't your failure result from tax
ing a position against your customers
IN the market 2"
"No."
"Well, you did take position in the
market against your customers, dld
you not?"
Hesitates at Answer
shewry at first refused to answer,
but finally said:
II suppose So"
A ahouse account In the name "B.
Caldwell" was operated by the part
ners, it was brought out, and there
we're also some transactions made
Shrough the account of John Bishoff,
who was q real person and who actual
siy did some trading himself.
There was a lack of harmony be-
sween the Shewry & Falkland partners
shen the bankruptcy clouds began to
aang thick in the financial sky. AS to
his Shewry testified:
who got away with all the money
I'D all the securities?" the attorney
asked.
II didn't get away with them.
,hink things ought to be gone into to
tfe bottom. Mr.. Falkland thinks I
did"
Then Falkland testified that one
Frank Canale, friend, let them have
$4,000. Falkland had discovered that
Fl ty shares of Canadian Pacific, which
&he Bishoff account was short, had been
stolen" from the ledger, and Edward
.yoogan, an associate, had to get them
faek Falkland also went to East
Orange to see Mrs. Neuman, who hao
deposited $4,000 in bonds for ex
change into foreign exchange options
and after talking with her Falkland
said he told her to consult the Dis
wv TAU I'D