The New York herald., 1922-10-14
$4,000 TO ENFORCE
Martin ACT LIES IDLE
Not a Penny of Emergency
Fund for Bucketing
Fight Touched.
VOTED LAST MARCH
Legislation Might Have
Saved Public Millions
in Stock.
WIDE SCOPE UNDER LAW
Attorney General May Con-
duet Inquiry Without Wait
ing for Complaint.

Special Dispatch to The NEW York HERALD.
ALBANY. Oct. 13.-Following the
Rochester speech of Seymour L. Crom-
well. president OF the New York Stock
Exchange, urging the enforcement OF
the Martin law as a means of eradi-
eating the bucket shop evil in Wall
Street 1t was disclosed here to-day
that an appropriation of $4,000 made
by the Legislature last March remains
without a penny having been touched
to carry out the law.
The fact that nothing ever has been
done toward enforcing the strongest
law on the statute books against
crooked stock brokers came as sur
prise since the action Of the Legisla-
ture in making that appropriation was
in the nature Of an emergency meas
ure specifically for the purpose OF
helping to root out the bucket shops,
whose wholesale operations at that
time had reached the proportions Of a
tremendous public menace
The appropriation Of the $4,000 was
/ agreed upon as the most effective
course after the Katlin bill. the Dug
proposals had been rejected as made
quate or harmful.
| Representatives Of the New York
Stock Exchange. opposing those pro-
posed measures. declared that the Mar
tin law, which 1t had supported Cor pas
| sage the year before. was the best means
| of dealing with crooked brokers. and
demanded to know why that law had
not been enforced against such dealers.
1t then developed that although the law
had been on the statute books nearly a
whole year and could have been used
against bucket shop operators long be-
fore their numerous failures lost millions
| for the public no money ever had been
appropriated to make the law effective.
Called Law Too Drastic.
When this situation was brought to
the attention of the Legislature II
promptly made the appropriation Of $10.-
600. with the expectation that at least
a start could be made with the weapon
at hand.
Acknowledgement Newton already had
deputy in New York in the person of
Major Frederick r. Rich. whose specific
duty was that OF ENFORCING the Martin
law. Major Rich. according to inforna-
tlon laid before the Legislature. stated
that while he had held the office for
months he was unable to do much with
| II because of lack of funds.
| So far as corld be learned here to-day.
not a single case has been brought to
prosecution under this law by the Attor-
ney- Generals office. Whether Major
Rich has been able to bring such ac-
tion or has made any Investigations in
New York could not be learned here.
II Is a faltc however. that no use has
been found for the $4,000 enforcement
fund
Mr.. Cromwell in his Rochester speech
said that some persons. including the
Attorney-General, were inclined 10 De-
lieve that the Martin law was too dras-
tic. 1t does not appear here that so
much as a test case ever has been
brought under the law so that It's
validity could be determined.
Under the Martin law the Attorney
General has powers OF investigation
much broader than those accorded Dis
trict Attorneys or even trustee In
bankruptcy. and he is empowered to
tawe proper steps to bring about prose-
crtions as warranted by the findings OF
such investigations. He Is authorized
n,so to appoint deputies. az has been
done I'm the case of Major Rich. to carry
cut this work.
May summon witnesses.
Moreover. the powers OF the Attorney
General under the Martin law dirfer
further from those of district attorneys
in that the latter must wait Tor COM
plaints to be filed before they can act
The Attorney General. acting under tne
Martin law. can proceed with investiya-
tIors into bucketing and stock frauds
az ALI sorts whenever II shall appear
TO the Attorney General either on COM
nlaint or otherwise" that the law is
being violated. In other words, II any
thing whatsoever, information by word
| Of mouth, a letter from some prooaplc
| victim, a newspaper article or even ms
own observation. should lead the At
torney-Genera or his deputy 10 suspect
that the law were being broken, ne
vould he empowered at once to make
such Investigations ae were necessary
ia verify OF dismiss such suspicious
n is believed here that. should the
d,screpancy between liabilities and as
sets in n stock brokers' bankruptcy be
so great as to make It appear that un-
lawful use of customers funds might
have preceded the failure, II would be
sufficient ground for the Attorney Gen
eral to act upon II he desired TO do so.
Further. in such investigations the
Attorney General Is authorized to sub
poena witnesses. books and any other
information needed with virtually full
freedom from the necessity Of granting
immunity. Critics of the Martin law
hold that the non-immunity provision