The New York herald., 1922-05-23
H. E. Stanley First to Be Con-
victed as Plain Thief Under
Bucket Shop Law.
MAY GET TEN YEAR TERM
Poor Customers of His Firm
Said to Have Lost UP to
100000 on Accounts

Howard E. Stanley. former member
Of the stock brokerage firm Of Miniter,
Norden & Co., 20 Broad street was
found guilty yesterday of grand
larceny in the first degree under the
bucket shop law, before Judge JOHN
stone In General Sessions.
The action Of the court establishes
a precedent that is likely to be OF in
estimable value in the prosecution of
all bucket shop cases. The case is the
first tried since the exposure in THE
NEW YORK HERALD. which resulted
in many indictments against stock
brokers. and. according to Nelson
Olcott, Assistant District Attorney,
prosecuting. is the first grand larceny
conviction under the anti-bucketing
law
District Attorney Eanton was pleased
at the outcome Of the case He said:
I've been saying for long time
that bucketing is just about t., same
as plain, ordinary stealing. and I'm
glad to see that Jury has upheld me
in that view
Stanley. who Is ss. and lives at 400
Sixth avenue. Brooklyn, was charged
| specifically with the larceny OF $500
| from Joseph NJ. Keiser, & salesman OF
| Newark in that he bucketed the cua
| tcmer's orders.
| At the trial 1t had been brought ou,
| by Mr.. Olcott that the brokerage ha
been established last May on $500 cap
ital and that 1t had lost more th.I
100000 of its customers accounts.
The head OF the house was Frank Min
tier. who pleaded guilty to larceny earl,
this month and testified against Stanley
According TO Mr.. Olcott, Stanley was tn
brains Of the firm although he had beel
merely bookkeeper prior to last An
gust.
Testimony disclosed the firms metho,
Of conducting business as follows: i
had n general account with broke
member Of the Consolidated Stock Ex
change. When one Of Miniter, Norder
g. Co.'S customers ordered stock for hi
account the company bought It through
the exchange house. Later II orderc,
the same stock sold and credited the sal
to dummy house account, which in thi.
case was under the name OF "W. J. Gal
legher."
Mr. Olcott pointed out that this wa
a plain case OF bucketing. The firm
merely went through the form of buy
ing and selling. the order being crossed
in such manner that no stock ever wal
actually held In the account of the Gus
toner.
| Keiser, the complainant, testified tha
ne had opened an account with the Min
tier firm In September last. depostinl
S700 in cash and $500 In Liberty bonds
On October 26 profits. according to tn,
firms books. had swelled the account t.
s4,700. He ordered 1t closed and got {
$500 check on account. The check wa!
returned marked mo funds" and Keisei
swore out a warrant for the arrest o.
| the two men.
Mr.. Olcott said the concern had abou
| thirty customers. the majority OF whom
were bootblacks, servant girls ant
others. who held accounts ranging under
$500. They were people who could no
afford to lose any OF their savings. h
emphasized.
According TO the District Attorney
Stanley has been convicted before. Las
December he pleaded guilty to crirri
nally receiving five shares Of stock stolcr
from De Coppet & Doremus of 4.
Broadway. He was sentenced TO thu
city prison for a short term by Judg,
| Koenig OF General Sessions.