New-York tribune., 1922-07-13
Brokers Before
Grand Jury in
Fuller Failure
Six, With Their Books, An
swer Subpoena in the
ss,OO0,O00 Crash OF
Stock Brokerage Firm
Seek Proof of Bucketing
Argument OH Attempt TO
Withhold Records From
Prosecutor Set for July 20

Rapid progress Is bcii made. y was
sald last night, in the grand jury's in
vestigation. begun yesterday, Of the
IS. 90. 900 failure Of L. NJ. Fuller & Co..
stock brokers. Evidence OF Illegal
practices was presented By Assistant
District Attorney Benjamin +. schreiber.
Two lines Of investigation were avail
able TO the grand jury, It is understood
one furnished By the complaints OF
customers who lost money turned over
10 the firm for Investment, or who
we're unable to collect the proceeds due
on stock sales, and another based upon
evidence obtained from brokers with
whom the Fuller firm did business.
Six witnesses, said 20 be the brokers
in question, bearing books ard doeu-
ments believed 20 contain the records
Of transactions with Z. ~ Fuller & Co.
appeared in answer 70 subpnnas. j. Is
through these records, Il is understood,
that Mr.. Schreiber expects 20 ascertain
whether proof Of tho buekcting OF
stock orders exists. Although the ae.
counts OF Fuller & Co. are protected
from investigation by o conftitutional
guaranty held by tho bankrups' At
torneys, II is supposed that the records
OF brokers through whom. Fuller & 90.
ordered purchases or sales Of stocks
will have these duly recorded, the other
brokers. Of course. standing merely os
innocent agents in any such transae-
tions.
II was said yesterday that an nt-
tempt Is being made 90 collect IN be-
half OF Fuller & Co. an $1,000 bal
anee to its credit with j. c. Rabiner d
Co.
Argument Is Postponed
The argument on the order 70 show
cause in the Federal court why the re-
coivor Of Fuller { Co. should not be
enjoinod from surrendering the books
Of account 20 the District Attorney un.
der the terms OF the constitutional
guaranty was postponed until July 20,
upon District Attorney Bantons mo-
tion.
Abraham Goodman, law partner of
Leonard A. Snitkin, called no Mr Ban
tons Office yesterday with the law
firms letter flc in the Vaudeville
case. They had ceased 90 be attorneys
Tor II. J.. Vaudeville. who failed for
about $4,000. shortly before the
bankruptcy took place. a letter was
written 70 The receiver, Irwin Vein
stein, Mr. Goodman said. under date OF
May 8, saying that he could have the
books. This letter was evidently not
safely delivered. As the Vaudeville
case stands now the receiver has
agreed 10 protect the constitgtlonal
rights OF the bankrupt pending the
feiection Of a new attorney. Bank
Tuptcy hearings will begin July Is be-
fore Seaman Nilier.
Dier Granted More Time
Attorneys for the receiver Of &. d.
Dier & Co, two partners Of which, FL
more D. Dier and Harry J. Lawrence
jr.. arc out on bail pending trial for
larceny and bucketing, said Yesterday
that they expected the entire assets
would amount 10 something like $780,
600. IN addition % the settlements
sanctioned by the court. amounting %
100000, claims against Fred Andrews,
the former cashier. and against five
brokerage houses arc still 20 be deter
mined.
Justice MeAvoy gave @ weeks extern
Firn % der and Lawrence yesterday TO
prepare motions.