The New York herald., 1922-05-03
BROKER DID NOTHING
! FOR $3.50 A WEEK
Almost Up to Failure Pay
Went On, Says Stepson
of MacMasters.
SENT BOY FOR SALARY
Young Witness Before Ref
cree Admits He Destroyed
Mothers Will.
BUcKETING TRIAL MAY Is
American Cotton Exchange
Has Been Ready Since
May Z, 1t Asserts.
BUCKETING TRIAL MAY Is

Almost up to the minute that r. III
MacMasters & Co, Consolidated Stock
Exchange brokers, failed. John F. Mac
Masters, who was not member of the
firm. was drawing down a salary of
$3.50 week and doing nothing. accord
by Roy HI. MacMasters at the con-
tinuation of the bankruptcy hearing
before Referee Peter B. Olney, at 68
William street.
The story young MacMasters has
been telling is largely family story,
from which it appears that he and his
partner, James A. Corcoran, who to-
gether constituted the Arm, were
largely under the direction of the elder
MacMasters. who is the younger mans
stepfather, until business began to go
badly, when the elder MacMasters
really dropped out, though he got his
salary to the very last.
While the MacMasters case was pro-
ceeding. another Consolidated Exchange
house was forced into bankruptcy. an
United States District Court against
Howard A. Cook, trading as Waters q
Cook, at 81 Firth avenue. Cooks assets
were estimated at 5000, including his
Exchange seat, at 5000. Liabilities
were said to be more than $4,000. The
creditors and their claims were: Albert
Gilbert, $1S6; Charles Deal, 500, and
Thomas l.. Honohan. $500. Edward B.
Zeisler was appointed receiver, under a
bond of $1,000
When David w. Kahn. attorney for
the receiver, Robert F. Stephenson. be-
gan questioning young MacMasters
yesterday. the line he followed was ex-
traordinary.
Mothers VIII Destroyed.
when your mother died, did she leave
. WIN"
"Yes." answered young MacMasters.
What happened to it?"
II destroyed it,
1t then appeared that the will in ques-
tion had made young MacMasters the
sole legatee of a small estate. consisting
of 5000 in bank and an insurance policy
of $3.50. The sons relations with his
stepfather were such that he did not
want to take any Of the property. He
told the undertaken to attach the bank
account and paid for the cemetery plot
out of his own pocket. His mother died
last January after an accident.
Mr. Kahn did not delve deeply into the
family affairs OF the MacMasters. He
next asked the witness about a scarfpin
which 1t had been hinted was worth
$4,000. The witness said he had sold
this and was reluctant to tell to whom,
but finally did so by order of the referee.
He had sold 1t to a man named Lindo
for SIS. but with the privilege OF repur-
chase for the same sum- He contended
he had virtually pawned the pin and
would get 1t back IL instructed to do so.
Then followed the questioning regard
ing John F. MacMasters. The witness
said he did not know where his step
father was, nor did ne know whether
he had carried accounts with other
brokers. He had last been In the
brokerage office three weeks before the
failure.
1t had previously been testified that
the elder MacMasters. when actively di-
recting the business, had had his own
salary raised from 500 to $550.a week.
The stepson testified in answer to ques-
tions yesterday that every week the
hoy" who ran the elder mans auto
mobile came down TO the Office and got
the $3.50 salary in cash. though the elder
MacMasters was not doing any work
and the firm was operating on borrowed
funds. The witness said his stepfather
was sick" and at one time said point
edly to Mr.. Kahn: "You know what I
mean by sick"
That ended the testimony of Roy Mac
Masters and Mr.. Kahn will begin with
the partner Corcoran, next Tuesday. He
IS also hopeful of having the elder Mac
Masters testify. There will probably be
long litigation over the latter's property
in Brooklyn. as the stepfather was not
member of the firm. though he had put
up some $4,000 to start the two others
In business At one time he was con-
nected with the firm of Hughes e. Dier
Young MacMasters admits he does not
know the brokerage business. though he
tried to learn IL under the guidance of
his stepfather. He impresses all who
hear him as very unlucky young man
who has been left in the position Of
holding the bag" Rothe he and Cor
coran face charges OF grand larceny In
Virginia. resulting from complaints Of
clients OF the Richmond branch of the
MacMasters brokerage house.
Bucketfng Trial May rs.
The American Cotton Exchange. un-
der Indictment for bucketing will 20 10