The New York herald., 1922-04-04
SIX DIRECTORS DENY
COTTON BUCKET|NG
American Exchange Men
Answer Not Guilty to
Indictments.
ANOTHER PLEA TO-DAY
Trading Organization Asks
for Early Trial to Get
Charges in Court.
STOCK FRAUDS FEARED
Banton Pessimistic Over Fail
ure of Legislature to Pass
Licensing Bill.
STOCK FRAUDS FEARED

Six directors of the American Cot
ton Exchange. indicted last Friday
charged with bucketing orders, pleaded
not guilty yesterday before Judge
Rosalsky in General Sessions. Coun-
sci for the exchange. which failed to
plead. is understood to be anxious to
have its case go before a jury and be
tried on tie merits of the indictment
Those for whom pleas of not guilty
were entered were George w. Pratt,
66 West Seventy-seventh street, secre-
tary and treasurer of the exchange; ;
Randolph Rose, Sr.. of 622 West 18th
street, vice-president; Angelo T. Jen-
nings of 372 Claremont avenue, Jersey
City; Raymond Palmer of S45 Union
street, Brooklyn; Edward Patten OF
Mountain Lakes, n. j., and Martin
Goulko of 914 Riverside Drive.
After pleading George Gordon Battle
and William Chorush, counsel for the
directors. received two weeks leave In
which to change or withdraw pleas or
make motions. The $1,000 bail under
which each defendant is held was con-
tinued
Indictments to BE Attacked.
1t is believed the individual members
Of the American Cotton Exchange will
contest the charges by interposing legal
motions to attack the validity of the in
dictments. Albert Massey. counsel for
the exchange. said he would file a writ
ten plea probably to-day. The exchange
was indicted by the Grand Jury at the
same time indictments were found
against the individual members.
From the first officials OF the ex-
change were quoted as welcoming an
investigation of its business operations"
Since this resulted in an indictment 1t
Is considered In line with the previous
statement that the matter should con-
tinue to be aired in open court.
The indictments grew out of a John
Doe inquiry conducted by Chief Magis-
tratc William McAdoo last month.
Witnesses testified that the majority of
trades were not real purchases of cotton
but merely crossing of a customers
order with another broker. The fake
deals were agreed on previously. and on
the floor signals were passed by holding
up crossed fingers.
Brokerage Trials to BE Arranged.
District Attorney Banton said he ex-
pected several trials of stock brokers
this month. Indictments were returned
last month against brokers whose al
legged dishonest methods of doing busi-
ness were uncovered in the bucketing
inquiry. Mr.. Banton said he hopes this
week to arrange the dates for the trials
OF these cases. in the criminal branch of
the Supreme Court and in General Ses-
sfons.
The District Attorney anticipated an
other avalanche OF complaints against
bucket shops in view of the recent ac-
tion of the Legislature in defeating a
bill to place stock brokerage houses un-
der the jurisdiction of the State Banking
Department The District Attorney said
he believed that since brokers no longer
fear the possibility of legislation to
check their operations there would be
an increase of Illegal trading.
Mr.. Banton said he had notified Wash
ington authorities that he was willing to
waive his right to try Samuel NJ. Small
on bucketing charges so that he could
be taken to Canada. where he is wanted
on similar charge. involving a greater
amount OF money
Small was arrested with Isadore
Friedman and George MarkeIson, trad
ing as Friedman. Markelson & Co. stock
brokers, on complaint OF Alphonse Des-
champs. The two others pleaded guilty.
TO trading against customers orders and
were released In bail. Small. however
asked 10 be committed to Tornbs PRISON
where he now Is. TO escape extradition to
Canada.