New-York tribune., 1922-02-12
Investigators Preparing
Gases for Three Grand
I,ries as Volume of
Complaints Increases
Life Savin ees Taken
Bv False Promises
Ponzi Methods Used 10
Lure Unwarv Invest
ors, Officials Declare

= With complaints o. victims OF stock
ywindlers On the increase, District At
.orner Bsntou said last night That
,hre- Grand juries would be employed
n the consideration ot evidence IN the
campaira against buckctsNops.
0f shsrty specimen cases prepared
ny the STAFF Of assistant district at
torneys assigned to this work, six al
ready have been presented TO the ST.
IRENE Court Grs~d Jury. beginning
next Tuesday, Mr.. Banton said, two
General Sessions grand juries will Join
With the other inquisitorial body In the
'nvesticy non. II was his intention. the
prosecutor said, to bring the fraud
cases to focus as quickly as possible.
"A number Of the csecs are now be
FORE the Supreme Court Grand jury"
,aid NJ Banton. out as this body is
engaged also with matters in conrcc-
ton with the lockwood committee IN
vest:gation have decided to use the
other grand iuries as we'll in order to
keep tho hecscssbo7 inquiry moving
speedily
Believes Thousands &ictimized
From the mounting number of COM
rlairts flied with his Office the District
Attorney estimated that The prey Of
stock juggling and trading frauds dur
ing the last year would run into the
thousands. NHe of the investigators
;sli re would not he surprised il the
Tictims of fnaNcial swindles for the
year aggregated 100000 persons.
lie resignation o. Assistant District
tt.ogney jerome Simmons. vino has
peen IN charge Of the force of investi-
gators. @il no5 interfere with the
york Mr. Banlon said. MIR. Simmons
has resigned it was announced yes-
tefday, TO sume charge of fraud in
9estigatous for the national vigilance
comm',tee oil tho Associated Advertis
ing Cluos OF the " Grid.
III. Bantou named Assistant Dis
tret A,torncy Benjamin Schroeder to
succeed Mr. Simmons IN charge Of the
bucket Shop inquiry The work Of
aaalyzing new complaints was cor
''aass yesterday By Assistant District
attorneys Schreibor, Wilson, Lnger and
i'leos. neir instructions from MIR.
5anTon we're to pick out Of the mass of
'hpiauts those which appeared to be
,le most fisgrart and upon which in
dnlncnts viii be asked.
Sugarmar Firm Mentioned
Among the concerns mentioned in
connection with the investigation YES
teroav Ws- Suearman & Co.. which
tailsi recently with large liabilities
aud enlali assets. An Investor who
dealt With the company has made a
statement that ne deposited bonds to
be used IS collateral FOR trades which
never materialized end that ne was
an@bie TO obtain the return Of his
secur'ies
Mar OF thosc who havc related
iAeF experiences to the District Al
s9mey office arc persons Of small
means Who could Ill afford to be feeced
q their avincs. Some of the manipu-
lators qesrading as bona fde
a'cherago houses. used Porzi methods.
according 20 the lnvo ostieators
A taEori'0 scheme. II is said was to
.a!l The unsuspectinc investor into a
state ot security by paying him cash
diVidends Ter time The bucket-shop
operator would explain to the investor
when he bought bonds that coupons
were not issued because this would in
VolVe unnecessary bookkeeping. After
recelvlNr idends for a month or two
me INVESTOR would seek out his "brok-
eT'' only to md that he had disap-
psafea eavng behind office furniture,
nut r9 trace Of records.
One OF the most pathetic stories re
a'sd TO the Investigators was that OF
~'dow w'tn three children, who said
sne was s"iriied out OF her life saw
.@gs IN mythical transaction. She told
we pisirct Attorney she would have
snded her life but for her children.
The ccmplauants included a police
ran ard q i4ritress. The policeman
Continued on paae three