The New York herald., 1922-06-29
!. FULLER HAS STRING
ON BOOKS TO KEEP
J THEM FROM BANT0N
Brokerage Accounts Go to
Receiver With All
Reservations.
. YET COUNTY MAY ACT
y, chreiber, Prosecutors Aid,
Thinks He Can Upset Con
4 stitutional Right
FIRMS CLERKS DESERT
Only One Major Employee
Willing to Help Clear Up
$4,00O,O00 Failure.
YET COUNTY MAY ACT
FIRMS CLERKS DESERT

The failure Of E. NJ Fuller & Co.,
members Of the Consolidated Stock
} Exchange. will prove to be comparable
with tho failure of E. D. Dier & Co.,
lYith the difference that whereas GRIM
al action is probable IN the case of
| ier, it would be difficult to prosecute
( customers complaints against Full
Her attorneys.
This was the gist Of the informa-
N obtainable yesterday in connec-
IN with the latest large failure in
) .e financial! district. It was recalled.
however. that in this case the authori-
ties of the Consolidated Stock Ex-
change knew the character of the men
who formed the firm of E. M. Fuller
& Co. years ago, as THE New YORK
HERALD pointed out in It's series Of ar
ticles on tho Consolidated.
That Fuller and Frank MCGEE, his
partner, had for years been schemers
and promoters was well known to in
vestigating agencies and also to the
officials Of the Consolidated Exchange.
1t appears probable from information
obtained from most reliable sources that
the liabilities Of E. NJ. Fuller 6 Co.,
will range between s4.000.000 and $5,-
100000. The assets may run as high
Aas $1.000.000, but this latter figure Is a
4 ,uess based on hope The strong boxes
4 the firm. it was learned, were full of
\ ecurities. but the character OF these
holdings, whether they are cats and
dogs or really high class paper. has not
been ascertained.
Employees Fail to Help Receiver.
The firm had seven branch houses in
Newark Philadelphia. Pittsburgh. Un-
iontown. Pa, Cleveland. Boston and
Chicago. Early yerterday the attorneys
for the receiver. Carl J. Austrian and
Francis L. Kohlman, communicated
with local attorneys in each of the
cities mentioned. so that proceedings for
ancillary receiverships will be begun at
once.
{ Samuel Strasburger. the receiver,
rrned the books over to a firm of ac-
ountants. Leslie. Banks & Co.. and took
possession of the offices at so Broad
street. where there was great confusion.
The employees Of Fuller. holding respon-
sible positions, refused with one excep-
lion 70 work for the receiver. preferring
20 st positions elsewhere.
1t is in connection with the books that
ie really important phases of the case
Z eveloped. The stipulation briefly re-
! rred to when the failure was first an
2 punced. was about as far reaching as
possibly could be, and probably will
4 event successful criminal prosecutions,
though Benjamin +. Schreiber. Assist
4 at District Attorney. believes a way
ray be found to prove criminal charges,
!. such are brought. without the books.
Make Binding stipulation.
Just before the petition in bankruptcy
was filed the books of the company
were obtained by James l.. Moore. at
torney for Fuller and his partner. Then
( when Strasburger demanded the books
they were turned over to him under a
stipulation which reads:
These books are being turned over
you solely for the purpose of the
vii administration of the bankrupt
" tate and to enable you to check up
= e assets and liabilities of the bank
I ipt firm. They are to be held in trust
you for the bankrupt and to be
4 turned to US upon the completion of
] ,ur inspection. It Is understood that
:. one shall have access to these books
the receiver, HE attorneys and ac-
a untants.
u I'VE are reserving moreover all the
Institutional rights OF the bankrupts.
NJ. Fuller Co.. and the individual
opartners thereof in regard to any
e Of the books In any criminal pro-
Y eding and we reserve the right to OBJ
i'ect to the use of these books and
ccords as evidence against the hrm
of Il. NJ. Fuller Co.. and any MEM
ber thereof. on the ground that the said
frm and the individual copartners
thereof cannot be compelled to give evi-
dence against themselves.
"The members of the firm of Z. M.
Fuller & Co.. claim the right to i'm
munity In the event that these books
s and records or any part thereof are used
or attempted to ne used as evidence
Egainst them
y 1T Is also further understood that
The books and records will not be used
sefore any grand or petit jury. either
ttate or Federal, In any prosecution Of
criminal nature against the 6rm Of
4 NJ Fuller & Co., or any member
f,ereof.
I'm case any subpoena or other proc
Us is used for the purpose Of obtain
e the books and records In the re-
q iver's custody the receiver agrees to
immediately notify the bankrupt firm
u d the individual members thereof and
Y turn the books TO the bankrupt and
dot to part with the possession of the
dime until the bankrupts have had an
a epportunity to raise the question of the
institutional privilege to refuse TO fur
ASH evidence against themselves in the
d me manner as IL the said books and
Il cords had remained In the possession
the bankrupts."
TIT will be s cen from this that were the
lstrict Attorney even to attempt to get
Il g Fuller books the receiver would be
y lgated, under what amounts to A
y ntract, to return the books forth
Continued on Pare Three.