New-York tribune., 1922-03-03
Only Sin Arrests in Stock
Frauds Since Grand
Jury Began Inquiry lu-
to Securities Juggling
Three More Firms
OF Brokers Fail
Assistance From Friends
May Allow kardos &
Burke to Pay FuIICIaims

The additional grand jury in Gen.
Graf Scssi ious. prior to its discharge
yesterday. returned SIX moro indic.-
mcnts charging ten persons with grand
larceny and buckctne This brought
the number Of buchctshop indictments
presented since the invest CATION was
begun month ago to seventeen, in
which total of forty-onc persons
were accused OF stock frauds.
OF those named in the flood of true
bills only SIN have been arrested. De
.ectivos of the District Attorneys Of
fec who have been searching for the
others with bench warrants have come
to the conclusion that several Of them
nave lett the country, fearful OF the
hlSh bail Of $4,000 each imposed on
five of the defendants now in tho
'ombs and prcfcrrine to wait until
tho buckctshop agitation has subsidized
before giving themselves un.
FusitiYcs Take No Chances
The fueitlVcs are said 10 have taken
warming OF tncir impending Indictment
from the presence OF former customers
in the crowds of buckctshop com
planants that daily tnronc the CORR
doris Of tho District Attorneys Office
in tho Criminal Courts 3uildinc. Tho
arrest OF four defendants among the
l"'lV" indicted odncsday. which was
~ Irf tod,
1lallzc. II was understood however.
that they wcrc under surveillance. be,
ing al liberty on bail in connection
with cases IN thc MAGISTRATES Court.
Increasing the number, Of stock
o!okeragc failures since February to
ABOUT lhlrtN. two moro concerns figured
IN involuntary bank kruptcr PROCEEDINGS
IN the 'nlted States District Court and
ono made an assignment Yesterday
ne firms alleged TO be bankrupt were
NJ f. & J. W. De Agucro, of 60 Rroad- :
way, aud Scott & stump. of 10 Ex-
change Pltcc, both of which were sus-
pended from the Consolidated Stock
Exchange ''''''
q. }. pcschamps. Of IS Beaver Street.
successor TO Friedman. Markelson e.
: : o. mace an assignment ior The bcnc-
l'' oi creditors to ". j. Cogan, A law
YER 9i - Wall Street. Dcschamps
Gaused { sea-. 1ne ,i. arrest Tuesday night of
J. 'sl4ore ,cdman, George Markelson
ard samuel Small. He CHARGED that
the three, hardly more than bows i'm
ago. dct raudcd him in the sale of
! rlcdman. Marhelson & Co.
One Firm Faces lnuuiry
ACCORDING To Assistant District At
torn'N ungcr Agucro g. Co. and Scott
" lump were mentioned in complaint :
"n'vn ne is stlgating The bank
rrup'cE Pctl'lon IN tho case of the
former wa signed by MARGARET A
poody. $. H. Markell and Selma Sto;n
VINO listed nominal claims. Federal
Judge Learned Hand appointed Charles
birmingham receiver for the firm undo p
a bond of $4,000. with the consent of
Sahcr cbcrmcior, counsel for Agucro
" 20 inc petition for d receiver csti
inatcd the company's liabilities at
@5uo.ouo and lis liquid assets a. $50. 600.
Leonard J. Obcrmcicr. Of counsel for
Agucro Co., which was established
III lSH I. issued d statement in which hc
SAID the house would be able to nav Off
ITS claims without serious loss TO- cli-
cnts He said tho embarrassment was
duo IN a largo degree TO tho fact that
in the last eighty davs more than sl50.-
YOU Wa withdrawn by clients. De
llnqNont assets, he added. were suf
tlclont to meet all demands. but it was
decided, IN fairness to others who had
not insisted upon the return Of their
money, to suspend payments and allow
al to share alike. According to Mr..
Obormcirer, the firm possesses large
assets which arc now frozen.
Court Names Receiver
Judge Hand appointed Francis l..
hohlnan receiver for Scott & Stump.
with a bond of $4,000. The bank
ruptcy petition was signed by four
creditors. They and their claims were
Harry Keller, $4,000; W. A. White.
$500; Mary Boswell, 5000. and Craig
W. Green. 50 200. second petition.
accompanying the order appointing a
receiver. placed the firms liabilities at
about $500 ,o0o, with assets of $l5O.OO0.
Hays & Wadhams, Of 10 Exchange
Place, counsel for Scott G. Stump.
issued the following statement:
1.-The great number of failures among
brokerage houses during the last month.
together with the agitation against I
them. has created an extreme distrust
of brokers among customers and has
Continued page four)