The New York herald., 1922-02-11
BUCKETING TO TAKE
JURY'S WHOLE TIME
Continued from First Page.

the board of directors and was expelled
as member of the exchange. 1t was
understood that the District Attorney
was making some investigation into the
affairs of this former member of the
exchange and the exchange Immediately
offered to submit its books to the Dis
trict Attorneys office for examination.
THE officials of the exchange and its
attorneys have conferred with Mr.. Will
son and Mr.. Simmons, Assistant District
Attorneys, and have at all times beer
ready to furnish them any information
that the books of the exchange might
disclose. and have urged the District
Attorneys office repeatedly to send an
accountant to examine the books of the
exchange. This has not been done ur
to the present time.
mo officer of the exchange has been
subppnaed by the District Attorney nor
have any books or papers of the exchange
been seized by the District Attorney
This would be wholly unnecessary, as
the exchange is as anxious as any good
citizen could be to suppress any illegal
transaction. and takes the same attitude
that the other exchanges have taken in
this respect"
District Attorney Banton issued this
statement on the American Cotton Ex-
change:
THE matter was submitted TO the
Magistrates court when the complain
ants did not think that they were getting
action quickly enough. Originally it had
been under investigation in this Office
by Mr.. Dooling. When he left Mr.. Sim
mons inherited it. After it got in the
Magistrates court we issued subpoenas
on Mr.. Pratt, secretary of the American
Cotton Exchange, and for John Doe,
which really meant the boy who reads
the quotations. Mr.. Platt responded
through his lawyer. Mr.. Massey. and we
were told they would submit their books
to any auditor we might name. Our
subpoenas called for their books and
records.
The subpoena we sent was a regu-
lar district attorneys request subpoena.
1t was not grand jury subpoena. Then,
my information is-and 7 have not yet
verified this=--they would not let an au-
ditor sent to them to examine the books.
When | heard this said:
'If that is true we will go down
there with grand jury subpoena and
take them
~ am going right through to the enc
of this thing and ferret out the truth.
II they are clean we will know it and
While this particular case gained mo-
mentary prominence there were plenty
OF others to keep Mr.. Banton's staff
busy. He found it necessary to add to
the special staff he has assigned to this
special work. He assigned .wo addi-
tional men--Albert Blogg and Richard
c. Gibbs-to aid Mr.. Simmons, James
J. Wilson and Benjamin j. Schneider,
who had taken up the matter the day
before.
Mr.. Banton estimated that not less
than thirty firms were under investiga-
tion and the number of complaints in
creasng all the time. He refused to
hazard a guess at the amotnt involved
in the various complaints that had been
made. but Mr.. Simmons, admitting that
s25, 100000 was too conservative fig
ure. said he thought the total might be
anywhere from $50. 900. 900 tc 500. .000.-
900. This. 1t should be made clear, is
the probable amount lest in cases that
have been reported to the authorities.
Unquestionably tho losses otherwise. by
those who have taken their medicine"
and said nothing. would be much greater.
Many complaints under subpoena
visited the Criminal Courts Building.
but they we're not called for the reason
that the Riclkard case and other matters
took the entire time OF the Grand Jury.
This means there will be a substantial
delay as to-day is Saturday and Mon
day is a holiday. The need for the ex-
elusive time of one of the Grand Juries
was at once evident
one of the compainants TO appear
was Mrs Sadie Welch of 10 Fort
Washington avenue. widow OF the
famous comedian Joe Welch. Her com
plant was against Milton Helm &
Co. of "A Broadway. now in bank
ruptcy. She dealt with the firm through
its Fifth avenue offices at 4s9 Fifth
avenue. and she is deeply concerned
over the loss of $4,000 par value of
American Sumatra Tobacco stock
which she put up as security for a
small loan.
Mrs Welch last. May sold several
stocks short. notably Mexican Petro-
lcLm, General Electric and u. S. Rubber,
and put UP securities valued at $4,000
10 cover her margin. She lost. and then
recouped her losses, but finally. week
before the concern closed its doors. was
again a loser. Then she put UP the
&C. bacco stock. which was then selling
at about so. as security for a loan When
the firm failed she sought TO cancel the
loan and recover her stock but was
unable to do 80. Since then the stock
las fallen to about 81, so that her loss
is greater than II would have been had
she ad access to the stock.
So far the Federal authorities are
taking no active part In tho work ot
rounding up tho bucket shop men other
than through the office OF tho Post
Office Inspectors. William Hayward.
Urited States Attorney. was IN Wash
" gtcn but his assistant. John r.. Joyce
explained that the matter would be left
i'm the hands Of the District Attorney
until IL became necessary to obtain or
question witnesses IN other sections OF
the country, as might happen in the
case of so-called wire houses"
The power OF the Federal authorities
explained Mr.. Joyce. was derived
through tho statute against using tho
mails for fraudulent purposes. and
nearly all such cases went TO the
United states Attorney through tho Post
Oflicc Inspectors. These were already
active. he pointed out. IN connection
with bankruptcy proceedings started ~
connection with tho affairs Of broker