New-York tribune., 1922-11-11
Master Minds
Said to Rule
BucketsIlops
Witness Representing New
England Creditors i'm Fail
ures of A Brokerage Firms
Tells of Search for Assets
$500, 600 Due Customers
Alleges G.. w. Field Sr. and
e.. w. Morse Sr. Sold Ac-
counts at doe on Dollar

That Succession Of stock brokerage
Offices, three of which failed, fourth
selling 10 one of those which later
failed in business that was indebted
10 it's customers for 100000, were op.
Grated by two or three master minds"
was charged yea erday at the hearing
of Hall & Co., which failed on Fehru-
ary 28 last for 100000, leaving about
$4,000 in assets. The District Attor-
ney's Office has Cor some time past
been Investigating the Hall & Go. fail
ure, but no indictments have yet, so E&r
as is known, been fosnd.
William S. Silkworth, president of
the Consolidated Stock Exchange, who
was called as witness yesterday, aaid
in the course of his examination that
he agreed with the 'fmaster mind" the
ory, as advanced by District Attorney
Banton.
Francis b. Fallon, who represents
about half of the creditors, nearly all
Of whom are in New England, traced
fhe history of the four concerns, as
shown by his Investigations in search
ing for hidden assets of Hall Co.
Mr.. Fallon's statement was put upon
the record after long controversy
among counsel, which was finally ended
by the referee, Harold P. Coffin.
being caught in rising market" Mr..
Failon said. 81 expect to show that
George w. Field g. Co. failed about
three years ago, and that George W.
Morse was an employee of George ".
Field and that Anastasia and his
father were employees After Field &
Co. failed, George W. Morse e. Co.
were organized and yeTrt into the same
territory George Nv. Morse & Co.
owed their customers 100000 George
w. Field sr. and George W Morse sr..
sold out those accounts to Hall and
Anastasia at 30 cents on the dollar,
and paid Hall & Co. So0,00O In cash
and securities"
Mr.. Fallon said that the same at
iorney who represented the petition
ing creditors in the Field & Co. bank
ruptcv also represented the petition
ing creditors in the fourth concern,
Field Brothers, composed of Leon and
Kenneth Field, sons of George w.
Field, now in bankruptcy.
The attorney called as two OF his
witnesses Charles j. Anastasia and
Silkworth. ,
"Didn't your board know that Hall
and AnastaSa were formerly connected
with Field and Morse" Mr.. Siikworth
was asked.
"Yes.' he answered, "Morse was one
of Halls sponsors" He added that he
did not know what securities they had
on hand, but that Hall showed $4,000
in cash to start business with.
"Were any means used to ascertain
information as to the accounts taken
over from Morse & Co. by Hall d. Co. ~
1--WE were not aware of it," Mr.. Silk
worth responded.
would not the transfer from Morse
g. Co. to Hall e. Co. leave clear profit
TO Morse of $120,000?'
Certainly"
"What do you think Of the District
Attorneys theory of a master mind
behind all these bucket shops-of three
or four master minds?"
81 think he is correct Mr.. Silkworth
answered.
He said he did not know Morse nor
Field, but knew Leon A. Field and
Louis T. Hall. George w. Fields g. Co.
were not members OF the Consolidated
Exchange, he said
Asked if he was friend of John
Donlin. secretary to District Attorney
Joab II. Banton, Mr.. Silkworth said he
was.
In answer to further questions Mr..
Silkworth said that there is no such
thing as an "illegitimate house ac-
count" as no one could stop broker
trading for his own account so long as