New-York tribune., 1922-03-17
Banton Directed to Put
Evidence Against the
Exchange Before Grand
Jury or City Magistrate
Officials and Firms
Face Prosecution
Nine Directors to Answer
Charges: Judge Advises
Immunity for Witnesses
at John Doe Inquiry

al JVs''t ooV aut{sIlTN
n prescntment made public late
yesterday at TIN conclusion of the
,ahn Doe nvestigation OF the Amcri
can Cotton Exchange, Chief Magistrate
ycAdoo found that the evidence war
,snted presentation directly to the
grand Jury or taking a complaint be-
FORE committing magistrate against
he officers and directors of the ex-
change "for conducting a bucket shop"
District Attorney Banton. to whose
ssfce the presentment was transmitted,
returned from Albany last night. It is
understood he will confer to-day with
Assistant District Attorney Jerome Sim
mons, VINO has been in charge of the
inquiry, and decide upon which of the
!To courses recommended by Magis-
,rste McAdoo to follow.
The officers of the American Cotton
Exchange are Augustus ". Graham,
president; Randolph Rose sr., vice
president, and G. ". Pratt, secretary
snd treasurer. The directors, accord
ng to Mr.. Simmons, are: Randolph
Bose ST. G. v. Pratt, Raymond Palm
sr. Angelo I. Jennings. Martin Goulke.
S J, Oliver. Edward L. Patton and j.
D. Whitaker OF this city, aud ". $.
forbes, Of Richmond, Ns.
Advises Immunity for Witnesses
Magistrate McAdoo recommended
nat immunity be granted t. those who
testified at the John Doe PROCEEDINGS.
Inc only officer who testified was Mr..
GTaham, formerly q Judge IN the South
and United States cotton futures
attorney before he became head of the
,xcbsnge in 1919. lie asserted he knew
nothing OF the methods employed on
ie floor this part of the e4cnanee's q
sdmlnlstratlon coming within the
larisdlctlon OF Mr.. Pratt As the wit
nesses we're not requested TO sign
saiyers OF immunity. it was pointe d
VT, they automatically became I'M
rune.
The evidence, the magistrate aeli,
$50 warranted taking complaint
Nnst "the individuals and firms who
IA part in the illegal and buckle ting
IL TO the officers and directors OF
II American Cotton Exchange. said
as presentment, the evidence so fa,
zgen involved the following individ
us, several oF whom arc directors:
Martin Goulko, trading under the
tame of Martin & Co
Israel Goulki, trading under the
name Of Anderson & Co.
Angelo T. Jennings and Leonard c.
sochcu, trading under the name Of
4 7. Jennings & Go.
Edward L. Patton. trading under the
Lame Of Edward L. Patton & Co.
Raymond Rose ST. and Randolph
Bose jr., trading under the name of
Rose & Son.
Transactions Simply Wagers"
Discussing the evidence adduc,d at
me three hearings held, Magistrate
AcAdoo. in his presentment, said:
The evidence shows that the largest
part Of the transactions OH this ex-
enange were simply Wagers made on
'he fluctuations of the cotton, mark ct
"a obtained by telephone communica
'on as TO the activities and actions of
'ther exchanges, following which false
representations were made to those
Nno had risked their money in these
legal transactions.
Considering the dangerously specu.
..,lPe nature Of wagering on the rap
ltly varying prices, natural or artiti-
fiai, OF this commodity, the lowering
w the unit upon which wagers were
s''aue from 100 to ten bales was q mis-
i;oFluhe for the large number of fool
.sh aupes who indulge in this form of
rambling, and their augmented losses
must be great. 1t ". uld be to the in
.eIeSts OF such people if the unit was
'en M higher than 100 bales.
buphemlstic catchwords and fc-
.:ohai devices characterize the transac-
IONS but the essential truth is appar-
isht. Even when the speculating Is
sohuucted within the law it calls for
,tseans to sustain large losses, Imagine
.ne chances, therefore. of the so-called
Stustomers ta1 when the game is often re
LED TO wager with dishonest and
S,iLiesponsible persons, and most OF
..,ose specializing live far away from
sle exchange in the cotton belt Of the
"outhern states.
me District Attorney, in the exer.
use OF his discretion, deemed it best
tbo Oe 70 seek waivers of immunity from
,ss. .e witnesses nho have testified, sc
fsi' as'' under the law, those persons.
sia Sag It. VII not be liable to prosecu-
MI f,'m' and where they have frankly anc
'S and without reserve given evi
'contnuod or page three)