New-York tribune., 1922-06-29
Seeks Evidence i'm Failure
of Consolidated Change
Firm, Despite Siipula-
ton Denying Him Books
Not Essential to
Grand Jury Probe
Receivership Is Friendly
Suit, Wall Street Hears,
as Liabilities Increase


The failure Of +. ". Fuller & Co.
whose suspension was announced on
the floor Of the Consolidated Stock EX-
change Tuesday morning. assumed
greater proportions yesterday. In addi-
ton to new estimates that put tic liza
biliiics in the neighborhood Of s5,ooo,-
600, announcement came from the Dis
triet Attorneys Office that complaints
had been received against the company
and. notwithstanding the fact that the
books we're protected by stipulation
from inspection. an investigation along
new lines would be started az once.
Assistant District Attorney Benjamin
r. Schrciber said last night that the
complaints were receiving careful sif.-
inc for evidence Of violation OF the law
that could be laid before the grand
Jury. He said he believed il would not
be necessary 20 have the eompany's
books. since he had mapped legal path
that could be travcrsed without re-
course 10 them.
Former Judge Samuel Strasbourger,
the receiver. was engaged in confer
cnces yesterday afternoon and inqui-
rics in the Fuller failure were referred
10 his assistant, Mr.. Weinstein. The
latter. asked If the receiver had signed
stipulation rs 20 the books, said he
had not II might. he added, have
been signed by the attorneys, who are
Carl J. Austrian and Francis l.. Kohl
man, % 81 Cedar Street. Mr. Austrian
said such q document had been signed
by the receiver and by the attorneys
as we'll.
The sirning Of this agreement
brought forth a broadside from Dis
trict Attorney Banton. II was not
difficult in the financial district yes
terday 70 pick up the assertion that
the stipulation. agreeing that the books
shall not be used for criminal prose
cuiion By the receiver or his attorneys.
was 10 keep them out Of the hands OF
the District Attorney. The books were
removed from the Fuller Offices late on
Monday. undcr the pilotage ot the
Fuller attorneys, Hays, 81. John &
Moore. Arthur Garfield Hays, mem
Der Of the firm, Is receivers attorney
in the DiCr ease.
"Thc morning papers state that when
the books of =. VI. Fuller & Co. were
delivered % the receiver in bank
ruptcy." Mr.. Banton said. "'they we're
surrendered % the receiver under a
stipulation that they we're not 10 be
the basis Of court proceedings against
the firm other than those no-mal 10
nouidation.' II Is evident that this is
Na 81 .
torney from examining the books OF
this concern.
Books Essential. Banton Insists
The various stock exchanges.
through their officers and governors,
have been proclaiming in season and
out % season that they are anxious 20
assist the prosecuting officers ~ pun
i.hinc brokers who are guilty a. vio-
latinc the law. These men know ina,
in order 20 prosecute successfully a
broker accused OF bucketing or trading
acains, his customers orders or Of Kim
dred crimes defined by laws or Of lar
eenv growing out Of misuse Of his Gus
toners collateral the books Of the
b.oker are necessary.
Solution Uf this trouble lies IN tne
/ bill Tire petts-Duggan bill. which was
killed in the Senate on the strength OF
telegram from Nr. Cromwell ipresi-
dent o. the New York stock Exchange
10 certain of the state Senators. Had
that bill become a law. all brokers IN
Now York now would nave waived their
constitutional privilege and the Dis
trict Attorney would have access TO
tho hooks Of brokers against whom
complaints Of a criminal character are
made. The plan is simple. Let the
various exchanges pass resolutions re.
quiring members t. hlc a waiver OF
constitutional privilege and thus per-
nit tho District Attorney TO have ae-
cess 70 the books IN d case OF eriml-
nal prosecution
Mr.. HAYS said that the stipulation pro-
b vidcd that the books Of Fuller q Co.
~,ere 20 be used "only for the purpose
/ of administering the estate. He cited
/ ave FEDERAL court decisions wherein Il
was held that a bankrupts books could
not be used against him where he had
f the forethouoht % so stipulate before
4 the receiver obtained possession OF
them.
Chicago Manager Hurries Here
1 III. Havs said he had received q visit
from Fuller. but mad not seen william
lF. NcGcc. the partner. lie also hha
seon Harry 4 EumCr. Chicago man
ager OF the frm. who came here on 'he
Srst train from the West.
Asked about rgmoTs OF bueketing'