The New York herald., 1922-03-03
Swindlers May Have Fled
to Europe or Canada
During Storm.
DES CHAMPS co. ASSIGNS
Consolidated Exchange Head
Supports District Attorney
on Broker Licensing.

( Ten more persons were indicted yes
terday on charges Of bucketing, max
ing the total forty-one since the drive
against brokerage swindlers began.
Two firms we're taken into the bank
ruptcy court. Another, which assigned
on Wednesday, was declared bankrupt.
Still another assigned for the benefit of
creditors.
| The new indictments were handed
to Judge Mulqueen by the additional
Grand Jury. Who these persons are
was not made known. 1t is indicated
in the District Attorneys Office that
there will be a roundup soon of those
indicted. Only six have been appre-
hended so far.
Banton Mindful OF Leaks.
District Attorney Banton acknowl-
edged that 1t was easy for man to
get out OF the Jurisdiction IL he knew
he has done wrong and that complaints
| had been made against him. 1t is
asserted that there are leaks in the
Criminal Courts Building by which per-
sons down town obtain advance infor-
nation on what may happen in the
| bucketing cases.
Mr.. Banton explained how easily
bucketeers might post lookouts near his
Office. who on seeing a former customer
waiting to make a complaint could tip
off their principals.
The setting OF bail at $4,000 in these
cases is believed to have scared offend
ers to Canada, and. even to Europe.
There are Indications that some OF the
men wanted have gone abroad. to re-
turn. perhaps. when the agitation is not
go great and when judges will fix lower
bail. 1t costs about $500 to get
bond for $4,000. and the offending
bucketeer feels he can enjoy his S1.500
much more In Havana or in Paris. The
alternative Of getting the bond. Of
course. is the Tombs pending trial.
-Four arrests were expected through
out the day, but none was reported.
Three Of the men wanted can be found
at any time. but there is some question
OF the whereabouts OF the fourth. II is
deemed advisable to round up all of the
party together. and they may be taken
70 court to-day.
Firm which Assigned fs Sued.
'rhe three new failures were those o.
Scott & Stump OF 40 Exchange place.
NJ. f. & j. w. de Aguera OF Sc Broad
way and Walter ]. Schmidt & Co. of
80 Broad street The last mentioned
firm made an assignment on Wednesday.
as was noted in TIE NEw YORK HERALD
yesterday. The Schmidt assets were
estimated at 100000, but there was no
figure for lia abilities. The petitioning
creditors, with their claims. were Ru-
dolph Breur, 1880: julius w. Turn.
$50, and Charles NJ. Brooks. $50. The
members of the firm are Walter j.
Schmidt, Thomas j. Schmidt and, Ernest
Scrimshaw
In the case Of Scott 4 Stump. which
had membership on the Consolidated
Exchange. four creditors filed petitions.
They were Harry Keller. who claimed
$4,000 w. A. White. $500; Mary Bos-
well $500, and Craig w. Green. $4,000.
The petition asking for receiver gave
the assets as s15o,000 and the liabilities
aa 100000. Judge Hand appointed
Francis l.. Kshlman % receiver, under
bond OF $4,000. Hays & Wadhsms,
attorneys for the firm. made this state
ment:
The firm OF Scott a Stump has been
in business about Ave years. Besides its
delphia. Hagerstown. Md. Cumberland
Nd: Chambersburg. Pa. Carlisle. Pa.
and Coatesviile, Pa. The great number
Of failures among brokerage houses
during the last month, together with the
agitation against them, has created cx-
treme distrust of brokers among Gus
toners and has caused a run on a great
number OF houses.
During the past several weeks Scott
& Stump have paid out to customers who
have closed their accounts upward OF
100000. The Arm has made brave
attempt to keep afloat. but The continu-
ing run on IL made suspension Inevitable
in order TO prevent preferences among
the remaining customers. A rough es-
innate OF the assets show quick assets
OF about $4,000 and slow assets OF at
least 5000. 900. although the value OF
the latter under a forced sale is prob
lematical. The liabilities ~ the firm
amount TO about 100000"
Insists Concern IL solvent.
Papers filcd in the De Aguera case
said the members OF the Arm are Louis
Green. David Goldman and Miguel lie
Aguera. The claims which had been
assigned totaied s575. A statement on
behalf OF the firm was made by It's at
torney. ~ r. Schmidt OF 220 Broadway,
who said II Is solvent and that the as
sets actually will far exceed the labili-
ties. He gave no figures.
Mr.. Schmidt intends 20 make motion
to have the bankruptcy proceedings dis
missed and says the firm will resume
operations. He said no demands for
payment had been made that had not
been met. He added.
There has been no bucketing by this
Arm"
The firm was suspended from the
Consolidated, as is usual In such cases
Continued on Page Three.