The Birmingham age-herald., 1924-11-30
c. PETER OWENS
 IS ACQUITTED
Raynor, Seventh Broker, Plead Guilty And Gave
 States Evidence
SENTENCE IS DUE
 NEXT WEDNESDAY
Jury Recommends Leniency For Nicholas, Truesdell And Gill
 bough, Ex-Partners
(Ry Associated Pressl

NEW YORK, Nov. 29.-Wil- liam s. Silkworth, former president of the Consolidated Stock Exchange, was con- victed tonight in the United States district court of the charge of using the mails to defraud.
 Convicted with Silkworth are Blaine ners with Dewitt c. Raynor in the de- las and Truesdell; Louis Gilbbough, floor broker on the consolidated ex- change for the firm and former mem- Der of the ways and mems committee of the exchange, Edward McQuade, and Francis X. Quillan, members of the former curb brokerage firm of McQuade' Brothers and Quillan. The jury was out nine hours.
 Firm Goes Bankrupt
 Raynor, Nicholas and Truesdell, one of the largest firms in the membership of the Consolidated exchange failed for approximately $4,000,000 on Feb ruary 29, 1922, when creditors peti- tioned it into involuntary bankruptcy. The previous day Nicholas had been ex- pelled from membership in the Consol- dated exchange.
 A series of referees hearings begun immediately developed that the firm had been bucketing virtually 90 per cent of it's customers orders, operating through at least half dozen minor brok- craze houses. Witnesses testified the greater part of the bucketing was done through the tirm of McQuade Brothers and Quillian.
 During the deferee's hearings na- tiOn wide search was begun for Raynor, senior member of the firm, from whom several persons had received letters in which he assumed responsibility for the failure. He was not found, however, before the case had been turned over to District Attorney Hayward on evil dence that extensive use had been made of the mails in schemes to defraud in- vestorS.
 SilkwOrth Involved
 Silkworth's alleged connection with the others involved also was developed at the refree's hearings, when witnesses testified that the Consolidated exchange had sent out letters to prospective cus- toners of the Raynor firm assuring them that the house was solvent and thoroughly trustworthy.
 On February 2S, 1922, the federal grand jury returned indictments against half dozen of the defendants, but these were superseded May 28 last by indictments against the nine men who ultimately were brought in, Silkworth, Raynor, Nicholas, Truesdell, Owen, the McQuades, the McQiullan, their brother-in-law, and Gilbough. Owen was office manager for the Raynor firm and Gilbough was a floor trader alleged to have executed bucketing orders for the house as a trader on the Consoli- dated exchange floor.
 Trial began three weeks ago after SilkwOrth had lost fight for a sepa- rate trial. He did win a postpone pent of the hearing to permit him to go to France as a member of the cham pionship rifle team.
 Turns States Evidence
 At the start of the trial, Raynor, who had given himself into custody at New Orleans. on February 2, 1924, sur prised his eight fellow defendants by pleading guilty. He later became a gov ernmcnt witness, testifying he had shouldered the blame for his firms actions at the solicitation of his part ners, who, he said, had promised to pay his wife $35 weekly if he, Raynor, would flee. It was when he learned that only one payment had been made to his wife that he gave himself up to the authorities, Raynor testified.
 At the conclusion of the governments case last Monday, Federal Judge Hand quashed the indictment against John McQuade, holding that no evidence had been introduced to show his knowledge of the operations of the alleged buck citing ring.
 C. Peter Owens, who was office man. ager for Raynor, Nicholas and Trues- dell, was acquitted, The jury recom- mended clemency for Nicholas, Trues- dell and Gilbough. At the request of Peter J. Mccoy, assistant United States attorney, who conducted the prosecu- tion, Judge Augustus N. Hand, who presided at the trial, set Wednesday for sentence and motions.