The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-03-05
MAIN TA|NS
OFFICES
HERE
Bankruptcy Petition Filed and
Steps Taken to Close Firm
in Other Cities.

Following closely upon the heels
OF the launching of an investiga-
ton of the G. F. Redmond Com.
pany in this city by the Better
Business Bureau comes word that
authorities of New York, Chicago
and Boston have taken steps to
close the doors of the concern.
Has Branch Here.
There is local branch of the
9. F. Redmond Company here in
the Southern building. The open
ing of the office here was the
signal for the Inauguration of
sharp investigation by the Better
BUSINESS Bureau. A fund Of more
than $4,000 has been raised to H.
nance a complete investigation,
Howard M. Cool, director Of the
bureau stated.
In addition to the inquiry into
the manner in which the firm CON
Quoted its business here, a triple
investigation has been launched IN
Chicago, it was announced.
The inquiry came about Whsn the
New York courts, at the instiga-
ton of States Attorney General
Carl Sherman, closed the New York
office on charges of operating a
bucket shop. State and county
OFFICIALS and members of the Chi
Cago Board Of Trade are conduct.
Ing the Chicago investigation.
Petition Is Filed.
An inunIp,Aa<o~,, ~1k;A;~-
ruptcy was filed in the Federal
Court in Boston today against the
q. r, Redmond Company. The COM
pany maintains its official head.
quarters in that city.
Creditors Of the company an.
peared in Federal court in Boston
and told Federal Judge Morton that
the company was unable to pay it's
debts. Judge Norton Immediately
issued an order restraining the COM
pany from doing any further bust.
ness in Massachusetts.
Started With $40.
G. F.. Redmond, head. of the al.
legged bucket shop concern, started
In the brokerage business with a
capital of about $40 and one clerk
Today he has offices in fourteen
cities and has an annual overhead
expense Of more +nan 81 200, 900.
He was formerly a waiter in q
Boston lunchroom, 1t was stated.
The local company is the one
which was recently shown to have
O sucker" list containing the
names of several hundred promi.
nent men and women of Washing.
ton. The name of District Com.
missioner Rudolph, high army and
navy officials and others high in
the official life OF the city were on
the list.
1t was said that there were three
or four statesmen employed in the
local office. They are declared to
have done most Of their work via
the telephone, using names from
the sucker list for their customers.
The list was purchased from a
New York dealer who handles such
lists. 1t was obtained from the list
OF stockholders Of concernsv such
as the Standard Oil and other big
business houses, which from time
to time post the names Of their
stockholders.
Part.Purchase Scheme.
The company is said to have in.
obliged in activities that are termed
an evolution" Of the bucket shop
idea.
Customers purchased stocks on
the part-time basis and were sum.
marilly closed out il the stock went
down and they showed any hest.
fancy in putting up more money.
The customer, If he CHANGED to
be specializing in stock that put
him on the safe side of the ledger,
was inveigled into transferring his
stock for some other. 1t was said
that given time, the Redmond Com.
pany seldom let customer get
away with profits.
The company carried a large
amount of stocks, and IL the custo.
ner made demand for his stock,
the company officials would show
him stock of the kind he had
contracted for 1t is said that the
company rarely bought the stock,
merely holding some of all kinds
IN OhnVw rY1afoVooro