New-York tribune., 1922-03-17
Quotes Law ON Buckctshops


the Penal Law, under which he recon
mendcd prosecution, Magistrate Nc
Adoo said
"Fhe article, Sic title Of which i,
'Bucketshops,' is very clear and OK
pllclt as to what actions are prohibited
thereby and as to who arc responsible
III connection with the offcnscs Gnu
meratcd therein. 1t is intended to pre-.
vent fictitious and make believe sales
OF various kinds of property, including
commodities such as cotton. 1t pro
hiblts all transactions where such
contract for sales shall be terminated
closed or settled according TO or upon
! inc OASIS of the public market quota
t'ons OF prices made on any board Of
'rade or exchange upon which such
commodities or securities are dealt in.
and without intending bona fde pur-
chase or sale of the same
"Or whore ii is intended that such
contract shall be deemed terminated
closed and settled when such market
quotations Of prices for such securi-
ties or commodities named in such
contract shall reach a certain figure
! without intending bona fide purchase
or sale of the same"
"Or whore it is intended 10 make a
settlement of such contract based
upon the difference IN such public mar
ket quotations of prices at which said
securities or commodities are, or as
serted 10 be, bought or Sold
ut holds responsible any persons
VINO shall as owner, keeper, proprietor
or person In charge of or as officer di-
/ t1f.tyN IL f.i,lo
correspondent or representative of such
owner, keeper, proprietor or person ia
charge. or of any other person, keep
conduct or operate any bucketshop as
herelnaitc defined, or knowingly per
mt or allow or induce any person, CO.
partnership, firm, association or cor
poratlon, whether acting in his, their
or it's own right. or as the officer
agent, servant, correspondent or rep
resentativc of another, to make or offer
20 make therein, or TO assist in making
therein, or in offering to make any OF
the contracts specified in the act
at also includes persons exhibiting
quotations intending to facilitate this
sort of gambling.
The act defines bucketshop as
any building or any room, apartment,
booth, office or store therein, or any
other place where any contract pro
hlbited by this article is made or
offered to be made
an the case of Bergstrom VS.. Ridg-
way Company the Appellate Division
of the Supreme Court. First Depart
ment, adopted the definition of Federal
and state courts defining a bucketshop
as a place where wagers are made
on Fluctuations Of the market price of
grain and other commodities'
Three Brokers Testified
! In addition to Mr. Graham, the wit
nesses who testified at the proceedings
early this week before Magistrate Nc
Adoo were Samuel Landecker, W. b.
Wilson and J. II. Watson. former
broker members of the exchange; How
ard Thayer. seventeen year old board
boy and Charles G. Iiealy secretary
of the clearing house association of
| the exchange.
The three brokers testified that TIC
bulk of the transactions on the floor
of the exchange were "cross trades
made to simulate bona hde sales; that
! little cotton was actually dealt in, and
/ mat there was no intention to make
| deliveries or future settlements. Young
Thayer testified that the American Cot
ton Exchange obtained the New York
and Liverpool quotations surreptitious-
~ by telephone from four members of
the New York Cotton Exchange.
According to Mr.. Landecker, Ran
dolph Rose ST. was the sponsor of the
Mathewson Trading Company, which
Tor time gave the exchange small
supply of cotton to work on. Anderson so n
d Co., Mr.. Landecker testified was
formed by Martin Goulko for the pur-
pose OF taking care of "cross trades. y
=, AZ the final hearing yesterday Albert
Massey, representing the exchange. and
George Gordon Battle, representing A
committee of its members, pleaded with
Magistrate McAdoo that i: he found
the evidence warranted further action
he decide that it be laid before a com
inittlng magistrate instead OF the grand
jury IN order that the defense might
eros examine witnesses and present
evidence. Magistrate McAdoo said that
the course to be pursued was dis
cretlonary with the District Attorney.
nc ne also pointed out that counsel for
inc exchange had been given wider lat
itude than customary in John Doe in
qulrles, having been permitted to ques-
tlon the witnesses.
IN urging a regular examination be-
lofe committing magistrate Mr. Bat
tle SAID that if indictments we're re-
turned by a grand jury they would be
ruinous to the brokers involved and
detrimental to the exchange. "Indict-
ments would at once destroy conf
dence in the brokers,' he said. Mr..
Battle declared the brokers who testi-
iled were "self-confessed accomplices" :"
Making the same plea, Mr.. Massey
pointed out that the exchange had 600
odd members in the South who were
not involved: "In order to protect the
rights Of these people," he said. 81
think an open hearing before com
mltting magistrate should be granted.
We should be permitted to bring out
certain facts which very seriously bear
on the credibility of the witnesses who
have testified and present evidence to
refutc the charges"
Mr.. f1ealy, the secretary Of the clear
ing house association of the exchange,
was called to identify seven largA
packages containing records of pu1-
chases and sales and Cancelled checks
covering the transactions of the mem
bers for the period from August, 1921,
to January, 1922. inclusive.