The New York herald., 1922-04-05
new COTTON BOARD
DENIES BUCKETING
American Exchange Pleads
Not Guilty to Fraud
Indictment.
WANTS TRIAL RUSHED
Business Hurt by Charges,
but Banton Refuses
Preference.
DIRECTORS TO GO FIRST
Canadian Authorities Have
Chance to Get Young Small
From Tombs To-day.

The American Cotton Exchange,
through its counsel, Albert Massey,
entered written plea Of not guilty
yesterday before Judge Rosalsky in
General Sessions. The exchange, with
six of its directors, who pleaded not
guilty on Monday, is under indictment
charged with bucketing orders.
Mr.. Massey argued for an early trial
and requested the Judge to place the
case on the preferred trial calendar, as
Ing damaged by the charges against
It. Judge Rosalsky referred the law
yer to Distfict Attorney Banton. who
said it was his intention to take the
case to trial as soon as possible.
a difference of opinion resulted from
the conference between Mr.. Massey
and the District Attorney on one point.
Counsel for the exchange said he
thought the corporation should be tried
ahead Of the six individuals and Mr..
Banton opposed this. The lawyer then
said he would appear to-day before
Judge Rosalsky to demand that the
exchange have immediate opportunity
to vindicate itself.
wants six Tried at Once.
The District Attorney said he hoped
the directors Of the excharge-George
w. Pratt. Randolph Rose, Sr.; Angelo
T. Jennings, Raymond Palmer, Edward
Patten and Martin Goulko-would with
draw their motions for two weeks leave
in which to change or amend their pleas
Il don't want to make fish OF one
and flesh Of the Others" said Mr.. Ban
ton. II want al the individuals TO go
to trial together If they will agree to
this I'll ask that the trial be expedited
The District Attorney said he believed
the exchange could demand separate
trial from the Individual directors. but
that he would decide whether it or the
men would go to trial first. The in
dictment against the exchange and the
six directors charges them with keep
ing, conducting or operating bucket
shop An additional Indictment Of
permitting and inducing the bucketing
or orders" was found against two of the
directors-Patten and Jennings. The
six men are under 81 900 bal! each.
Slattery & Co.. stock brokers. Of 40 Ex-
change place, were taken into bank
ruptcy court by an Involuntary petition
in which Francis l.. lynch claimed $6l5,
Thomas NJ Lawton, $S5. and Fred II.
ST John. s2.400. The petition was filed
by Burgess Osterhout of E.kus. Glea-
son. Vogel & Proskauer of III Broad
way. The petition asking for re-
cever estimated liabilities of $l.0oO,OOo
and assets OF $500, 900. Judge A. N.
Hand appointed Francis J.. Koblman re-
ceiver. with bond of $4,000.
Mr.. Osterhout said he did not know
the reason for the financial difficulties
of tho firm. of which Alfred j. Smith
is president. Two of the petitioners
are customers and the third claims
money due for merchandise.
Small May he Freed Here.
Samuel M. Small, nineteen-year-old
stock broker. under Indictment for trad
ing against customers orders. will be
taken from Tombs Prison to appear be-
fore Justice Finch of the Supreme Court
to-day. The District Attorney will ask
that hts bal, OF $4,000 be dismissed and
will waive the right to try him here so
that Canadian authorities can gain Gus
tody OF him.
Small is wanted in Montreal for al
legged swindles there involving a greater
amount, and he recently had himself
committed TO the Tombs to avoid extra
dition. 1t is virtually certain that he
win De taken to Canada unless the court
upholds a motion that his counsel may
make that he has the right to remain
here until ne is tried or the indictment
against him dismissed. His lawyer is
Eugene MCGEE. who intimated that he
might take such a course.
Mr.. Banton Is continuing his fight to
get the books of f.. ID. Dier & Co.. over
which there has been litigation for sew
ersl weeks. Both the District Attorney
and Nash lockwood, counsel for the
bankrupt concern. have agreed on the
order. and IL merely remains for 1t to
be entered and signed by Judge Learned
Hand in the United States District Court.
Mr.. Banton said there was possi-
bility that stay might be obta ned
from another judge but that he did not
anticipate such action.