Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-11-13
GRAND JURY OPENS
BROKERAGE PROBE
AS ECHO Of RAIDS

After an all day session during
which it began an investigation OF
alleged violation of the Georgia law
prohibiting transactions in futures
on margins, with scores of witnesses
on hand as a result of raids con-
Quoted last Saturday by officers act
ing under instructions from Solicitor
General John A. Boykin, it developed
thta Injunction proceedings in the
federal court wer eavoided when So
Hcitor Boykin agreed to postpone
investigation of four brokera &c
houses maintaining branches here.
This postponement was agreed up
on, it is said, so tina tit could be
determined whether these cases
should be handled in the federal
courts. u
No true bills were returned at
Tuesdays session, the grand jurors
planning to resume the probe on
W ednesday.
These four establishments had
prepared injunction suits seeking
to restrain the solicitor general his
assistants. and the sheriff and his
assistants, from prosecuting or IN
terfering with the operations OF the
brokerage offices. 1t was Planned
to obtain the injunctions from Judge
Samuel H. Sibley, who is holding
federal court in Athens this week,
but by agreement with Solicitor
Bovkin, the suits were withheld and
the investigation and prosecution OF
the four concerns was deferred.
Names of Brokers
n
der the agreement are Fenner d
Beane, of New York and New Or
leans; Livingston and company, OF
New York; H. and 3. Beers, of
New Orleans, and j. Clarke and
company. of New York. They are
represented by the law firm of Lit
lie Powell, Smith and Goldstein.
The other brokerage houses IN
yolved in the raids, including the
Atlanta Commercial Exchange,
which is u clearing house of stock,
bond and commodity market infor-
nation, were the subject of investl'
gation Tuesday by the grand jury.
The corridors of the courthouse
were crowded with witnesses sub
poenaed by the raiding parties, and
records and ticker tapes conflscated
in the raids we're on hand for the
inspection of the grand jurors
AS the grand jurors began their
session they were presented with
g. petition from the Atlanta Com
mercial exchange, urging that a
thorough probe of the situation
be made without delay and that wide
publicity be given the result. the
exchange officials and members, who
6nNlnrn6
last Saturday caused great injury
and loss to bona fide, reputable pusl-
ness concerns and individuals en-
gagged in lawful business transac-
tions. Further loss and damage to
the business foundation of Atlanta
will result unless the situation is
cleared up Immediately. it is stated
High officials in several OF the
brokerage houses whose branch Or
fices were raided Saturday, are
here to participate in the probe, and
it was stated that attorneys for
the telegraph companies furnishing
wire service to the brokers and to
the Atlanta Commercial exchange
also will take a hand in the sltua-
ton.
Brokers' Contentious
The four brokerage houses in
volved in the agreement with the
solicitor general contend through
their attorneys that so far as stocks
and bonds are concerned, they are
handled for present delivery only,
and are regulated under the rules of
the Georgia securities commission.
So far as future deliveries of cotton
and other commodities are concern
ed it is asserted that these estab-
lishments make no contracts of any
kind in this state, but handle the
transactions in New York, New Or
leans or Chicago, under federal reg
ulation and inspection. They deny
that they have at any time engaged
In "bucketing' orders, procedure
prohibited by the federal ard state
laws.
Intimating that financial damages
may be sought against those who
participated in the raids last Satur-
day, the four brokerage houses de-
clare that their loss as result OF
the raids already has run into many
thousands of dollars.
They declare they have no objec-
ton to any steps that the solicitor
generals office and the police may
take against bucket shops; that the
bucket shops, the existence of which
they do not deny, are a menace to
the public and are particularly hurt
full TO the legitimate business which
they are carrying on. They state
that it is easy to distinguish between
a bucket shop and legitimate
brokera sc office, and that the solic-
itor general and the police could
easily have confined their raids to
the bucket shops which are against
the law and not have done the dam
age they did to these legitimate
brokerage offices.
They also assert that the search
warrants which the officers claim to
have were issued without any basis
OF law and were absolutely void on
their faces, and that all persons con-
nected with the raid were guilty of
conspiracy and trespass; that the
subpoenas whic hthey served upon
the customers Of these offices were
perior court and were in no wise
legal subpoenas and that the officers
did great wrong in taking charge OF
these offices, blocking the doors and
refusing permission to customers to
enter or TO leave, as well as in the
seizure of the papers that they
seized at these various places.
Costly Delay by Raids
More than a dozen raids were