The New York herald., 1922-02-17

by representa- tives of the Better Busi-
ness Commission OF Ohio. About the
same time q dispatch from Pittsburgh
announced the arrest there Of G. J.
Heyne, manager of the Pittsburgh
office of Anderson & Brown. He was
charged with fraudulent conversion
and arrested on a warrant sworn out
by c. II. Hensler of Pleasant Unity,
Pa. Hensler said he bought $4,000
worth OF stock. but only part OF 1t was
turned over to him.
Can't Find Firm Members.
Following the announcement of the
expulsion Of the MacMasters firm
from the Consolidated Exchange an
effort was made to find the members
of the firm at their offices. James A.
Corcoran is the partner Of r. III. Mac
Masters. Both were absent and there
was no one in authority TO talk for
them or to make any answer to Mr..
Silkworth's charges. The firm has a
large quotation room and several
small offices on the second floor OF the
building it so Broad street. 1t has
been In existence, said Mr.. Silkworth
about two years. In announcing the
action taken the president of the Con-
solidated Exchange said:
I'm connection with the general in
vestigation of the bucket shop opera
tions in this city we have been making
an investigation OF our own, begin
ming with orr own members, their
wire connections and those who take
our ticket service. We are taking
nothing for granted even WITH our
own members.
LAS the first result or this investiga-
ton we have expelled the firm OF II. II.
MacMasters OF 81 Broad street for vio-
lation Of section 8 OF article 3 of our
bylaws, which reads: Any member OF
this exchange who shall be employed
to purchase or sell any security or COM
modify traded in on this exchange who
shall buy or sell Gas the case may be)
such security or commodity. directly or
indirectly. for his own account, thereby
nullifying the effect of his clients order
and under cover OF two opposite execu-
tons taking the transaction to his own
account. shall be deemed guilty Of OBJ
vious fraud or false pretense and the
board of governors after investigating
the facts of the case may inflict the
penalty provided for in section /, article
49, of the constitution
New Form of Bucketing.
This is the newest form OF bucket
ing" continued Mr. Silkworth I'VE
found that the MacMasters firm had
sold for their own account stock they
should have been carrying for Gus
toners. The matter was taken up by
the committee on ways and means and
the transactions complained OF were adj
rnitted by the members OF the firm. We
are now getting all of the data in shape
and will submit Il tomorrow to the
District Attorney. with whom we are
cooperating.
'It makes no difference TO US how
big firm may be or how Influential its
members, II the violation OF rules is
great enough we are going to expei the
firm. We hope that the present agita-
tion will keep up and that the fight
against bucket shops and illegiti1nate
brokers will be carried through until the
illegiti.nate broker is driven entirely out
OF business.
III the matter is allowed TO drop
where we are. then the only benefit to
the public will be the driving out OF
business Of the illegitimate brokers who
happen to be operating just at this time.
The thing will come up again. as it has
come UP before. We should go much
further than that ard create protection
for the public by licensing brokers.
Favors Licenses for Brokers.
"A stock brokers' office is. in meas
ure, like a bank. lie is. in n way,
custodian of the public's funds. He
should not be allowed TO be in business
unless he is licensed The license might
be issued by one OF the standing com
inittees OF the State Legislature or such
a committee as is suggested In Senator
Boylan's bill against bucket shops.
''As conditions exist at present any
individual. honest or otherwise, has tho
privilege Of hiring an office and setting
himself up as stock broker The real
solution of the whole problem. in my
opinion. lies in the licensing of brokers' -
Mr.. SillSworth said he understood the
MacMasters firm had some seven or
eight branches. The partners were II.
II. MacNasters and Mr. Corcoran, and
the father OF r. III. MacMasters. John
II. MacMasters, was one of the hackers.
He understood that the father had not
been able TO pay any attention to the
business OF late because of the shock
incident 10 the accidental death of his
wife some weeks ago.
Mrs. John f.. MacMasters mother Of
the head OF the expelled brokerage firm.
was slain accidentally on the last day OF
1921 by her companion. Miss Mary
Allyn, in the, MacMasters home. 1916
Argyle road Flatbush. Brooklyn. Miss
Allyn had elected what she thought was
all the shells from an automatic pistol
70 make II safe. The gun exploded in
her hand, the remaining bullet striking
tho older woman Mise Allyn was ex-
onerated.
All VIII he rnvesttuated.
1t IS the intention ss the officers ~
the Consolidated asserted Mr.. Silk
worth TO Investigate every one of its
4Ts members thoroughly and 10 main
tain connections with the District AZ
torney's office to supply him With In
formation and aid him in the prosecu-
tion OF cases.
Apparently Il Is going 20 be difficult
for men accused of stock frauds 10
gain their freedom on bail IL the OK
ample set by Judge Mulqueen Is fol-
lowed by others of the bench. Judge
Muiqueen set bail at s50.ooo each for
two accused men.
The two were Frank Miniter aud
Howard +. stanley, both taken into
custody on Wednesday on the complaint
OF Joseph Keiser of Newark who
charged they had misa appropriated 1890
In Liberty bonds and $500 in cash. The
Assistant District Attorney. Mr.. Sim
mons. asked that bail he fixed ut 5000
IN each case.
"Are these two mon still in busi-
ness?" asked, the Judge.