The New York herald., 1922-03-17
BUCKETING CHARGED
TO 12 COTTON MEN
Continued from First Page.

Continued from First Page.
OF the methods used on the American
exchange as shown by the testimony be-
fore him. So dangerous does he regard
the legitimate speculative cotton mar
ket that he recommends that the unit OF
trade should not be lowered from the
100 bale standard Of the New York ex-
change.
The Magistrate had made the state
ment in the hearing that his BELIEF was
that the American exchange had adopted
the ten bale unit to catch the small
gambler who least could afford to lose.
That was denied vigorously by Mr.. Gra-
ham.
In his presentment Magistrate Nc
Adoo said the evidence showed that the
largest part of the transactions on the
American exchange were simple wagers
on the fluctuations OF the market based
on quotations obtained by telephone
from another exchange, after which
false representations were made TO
those who risked their money. He ven-
tured the opinion that the number OF
persons thus duped was large and that
their losses were great, and commented
caustically on the catchwords and nc
tional devices allegedly used to lure VIC
Tins.
Finds Penal Law Clear.
Magistrate McAdoo's presentment In
full follows:
"Article 3s, section 800. or the Penal
law, the title OF which is Bucket Shops
is very clear and explicit as to what
actions are prohibited thereby and as to
who are responsible in connection with
the offenses enumerated therein. 1t Is
intended to prevent fictitious and make
believe sales Of various kinds of prop
, erty. including commodities such as cot
ton.
1T prohibits all transactions where
such contract for sales shall be termi-
mated. closed or settled according to OF
upon the basis of the public market
quotations Of prices made on any board
OF trade or exchange upon which such
commodities or securities are dealt In
and without intending bona fide pur-
chase or sale Of the same
"Or where It is intended that such
contract shall be deemed terminated
closed and settled when such market
quotations of prices for such securities
or commodities named in such contract
shall reach a certain figure, without In
tending a bona fide purchase or sale OF
the same
cor where II is intended TO make a
settlement of such contract based upon
the difference in such public market
quotations OF prices at which said securi-
ties or commodities are, or arc asserted
to be, bought or sold
TT holds responsible any person who
shall as owner. keeper. proprietor or per-
son In charge of or as officer, director
stockholder agent servant, correspond
ent or representative Of such owner
keeper, proprietor or person In charge, or
OF any other person. keep, conduct OF
operate any bucket shop as hereinafter
defined. or knowingly permit or allow
on. induce any person. copartnership
hrm, association or corporation, whether
acting in his, their or its own right. or as
the officer, agent. servant. correspondent
or representative of another to make or
offer to make therein. or to assist In
making therein. or in offering TO make
therein, any OF the contracts specified
In the act
ct also includes persons exhibiting
quotations intending to facilitate this
sort of gambling
"The act defines a bucket shop as
any building or any room. apartment.
booth, office or store therein or any
other place where any contract pro-
hibited by this article is made or OF.
fered to be made.
way Company. 13S App. Div, IFS, the
Appellate Division OF the Supreme
Court. First Department. adopted the
definition OF Federal and State courts
defining a bucket shop as "a place where
wagers are made on the fluctuation OF
tie market price OF grain and other
commodities
Evidence Found Sufficient.
II am OF opinion that the evidence
given warrants presentation directly to
the Grand Jury or taking complaint
against the officers and persons In
charge OF the American Cotton Ex-
change as for conducting bucket shop
under the terms OF this act.
The evidence will also warrant the
taking OF a complaint against those in
dviduals and firms who took part in the
illegal and bucketing transactions testi-
fled to by the witnesses.
"The evidence shows that the largest
part Of the transactions on this ex-
change were simply wagers made on the
fluctuations OF the cotton market as OBJ
tained by telephone communication as
TO the activities and actions of other
exchanges. following which false repre-
sentations were made to those who had
rlsked their money In these Illegal trans
actions.
considering the dangerously specu-
lative nature OF wagering on the rapidly
varying prices. natural or artificial. OF
this commodity, the lowering of the unit
upon which wagers were made from 100
TO 10 bales was q misfortune for the
large numbers OF foolish dupes who In
dulge in this form OF gambling and their
aggregated losses must be great. II
would be TO the interests Of such people
II the unit was even higher than 100
bales.
Advertising Methods Censured.
"Euphemistic catchwords and fictional
devices characterize the transactions,
but the essential truth is apparent.
Even when the speculatine Is conducted
within the law II calls for means to sus-
tain large losses imagine the chances
therefnre Of the so-ca lied customers