New-York tribune., 1922-07-02
Receivers will
Aid Banton in
Fuller Inquiry
All Evidence Not Included
in Stipulation Covering
Books Will Be Turned
Over to District Attorney
Assets Below Half Million
Prosecutor Asserts He Has
Enough Facts Now to Go
Before the Grand Jury

It was learned last night that Dis
trict Attorney Banton may expect the
cooperation of the receiver and the
receivers attorneys in his investiga-
tion of the affairs of E. NJ. Fuller &
Co., the stock brokerage firm which set
q new record for Wall Street failures
when it went under on Tuesday. This
their duties permit.
Although the books and records Of
the concern are protected from exami-
nation by the prosecuting authorities
under q stipulation exacted before they
were surrendered to Judge Samuel
Strssbourger, the receiver, neverthe-
less i. is understood that any evidence
of violation of the law not thus pro-
tected will be promptly forwarded to
the District Attorney
The opinion was expressed yesterday
that the firms assets may fall below
the 100000 previously estimated.
In connection with the Banton in
quiry it was said that there was not
the slightes. inclination on the part
Of anyone officially connected with the
winding up OF the S5,ooo,00o failure. ex-
eept, perhaps, the bankrupts' own at
lated in the rulings of the Federal
courts that bankrupt's accounts could
not be used against himself This
statement followed Mr.. Banton's an
nouncement that the complaints he had
received were such that they could be
laid before the General Sessions grand
jury on Wednesday with view to OBJ
taining indictments for larceny.
Receiver to Open Inquiry Soon
Although it will be some time before
the accountants finish their cxamina-
ton Of the books and listing Of Sc
curities, Judge Strasbourger said he
would begin the examination of the
bankrupts without delay thereafter
Letters are still coming into the re-
ceiver's Office asking why remittanccs
are not sent. The letters remind Z.
n. Fuller G. Co. that $50, Sl0O or
whatever the sum may be is owing
TO the writer as profit on the sale of
certain securities Some remind the
firm that the check should have been
received three or four weeks ago.
1t is alleged that. as in other cases,
the Fuller Company, when their Gus
toners refused to leave their funds
for further trading but demanded pay
ment. put them of as long as pos
sible. and only as last resort gave
them their money. 1t was also re-
ported that virtually no securities
were out on collateral loans, as is
usually the case with q we'll conducted
brokerage house.
Stipulation Covers All Records
Just what evidence the District At
torney may be able to get from the
receiver or hs attorneys Is problemati-
eel. 1t was said positively, however,
that If any is available t. plan for it's
utilization in grand jury proceedings
VIII be devised. The stipulation exist
rupts' attorneys cover "books" and
books and records"
Asked if any evidence had been
found that Fuller kept two sets of
books and that the set delivered to the
receiver was faxed, Judge Strasbourger
said he had heard such rumor but
lad not been able to varify it, Most
Of the Fuller employees, including all
of the bookkeepers, have disappeared.
Mr.. Banton said that while his in
vestigations of the Fuller failure would
be materially aided by an examina-
tion of the account books, he never
theless felt that he had been fortunate
in obtaining evidence of character
that could be presented to the grand
jury upon its own merits.
II am Of the opinion" Mr. Banton
said, that we shall be able to make
out case without the books. We are
getting what l would call a good
break from some Of the customers of
the defunct firm who lost their money"