New-York tribune., 1922-02-14
Evidence, Expected to Re-
suit in Score of Indict-
ments. To Be Presented
bv Prosecutors Office
Letters Seized in
Raids Lured Dupes
Part. Payment Plan aud
Promise of Big Profits
in Pools Led On Victims

Evidence which the District At
torney'a Office hopes will bring about
the Indictment of ecorc of brokers
charged with having robbed clients
through buckctshop schemos VIII b.
presented to the February term OF the
Genera Sessions grand Jury To-Day
and the January Supreme Court grand
Jury tomorrow. 1t WAS announced yes
serdsy. The evidence Is based on ex-
animation of twenty witnesses and
document seized in raids OF alleged
hucketshops by Federal and state Of
scals during the last six months.
Part OF The evidence in possession OF
Assistant District Attorneys Schroeder
and Simmons concerns transaction in
"sil. edge" securities, such as Stand
ard OIL Steel and other large dividend
paying stocks. Letters seized IL the
.aids indicate, it was said, THAI an
iaconspicaous method of attracting i'll
vestors 70 The alleged fake schemes
vas by Advertisements II country
newspapers. These advertisements told
readers tia. taey could buy these
stocks or the instai.mert plan. It was
necessary to pay only 20 per cent
down and the balance could be paid In
Teekly suns.
baitcd by Pooling Oner
The letters further show that tie
brokers' promised 10 deliver these
s.o.ks when certain sum had been
paid on then, usually about rs per
cent Of the total payment.
The Investigation has disclosed that
}aen some Of the stocks were delivered
{, ing peopis who We're buying them on
we're informed By the brokers that they
nsd the privilege Of pooling their in
estinents # they 50 desired and reap
ms large profit Ii the invest tor was
short Of available cash he Was allowed
D rut ii his stocks.
witnesses examined By members o.
tae District Attorneys asaH said noth-
ing ever va heard BY The investor re-
eaFdng ether tic stocks or the pools
ie.ioHing tneir tumble for the get-rich-
erick plan
Nany Of the brokers who induced
leope TO invest under these arrange
nsass have fed the city, it was said.
aEile others have destroyed their rec
'rds Or assumed new firm names Ut new
Addresses.
Larceny OR fraud Charges
The Ay-bynirht character Of these
concern presents obstacles to the prose
cutors, but Il is the intention 20 clean
tae city of She fraudulent operators bv
making an cNampio Of those regarding
whose act;v.tles the authorities have
evidence
The evidence is said to warrant in
doictments eiiher for grand larceny or
fraud, or FOR both. Where the COM
paint just'Aes, several senarate irdict-
Men1s vii be asked.
The Martin law. which gives the Az
forney General Of the State the right
70 20 into any suspected brokerage
mousse ana examine its books or otho,
paper, has bean the means Of obtain
ing some Of the evidence. and IS the
res1-t o. conferences between Deputy
A. sraey General Rich and members OK
tAe District Attorneys statf, is expected
70 De iarche- invoked in the campaign
70 rid the city of bucketeers.
Evidence of ''Washing'' Found
Jerome Simmons, Assistant District
sals'orIey, who has been assisting in
W sse exam nation Of brokers books, said
an .Ls' ne ras found as fine a case Of
"ashihg Is the financial district has
sno"n IN number OF Years. He said
s.n sas' ne had succeeded in tracing GER
auncates 6 stocks from the hands Of
Washers through the selling brokers,
over TO the buying brokers and back to
". .ns oTlg;r@l owners. In each traNsac-
s0n he found tnat the customary check
M "as eAenaAeec, bur commissions We're
,.vI paid heoause The firm had it's ovr.
,.,.. On salary 20 make purchases and
.'", M{
"her vAe washing OF this stock
o-ss'ea' sad MI. Simmons, "the price
." the c1rD ~@s Is. In about three
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