Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-22
ARREST 4 BROKERS
IN LONDON CRASH
Police Charge Conspiracy
Costing $40, 900, 600 to
Shareholders.
BY the Associated Press

BY the Associated Press.
LONDON, September 21.-Clarence
HAIRY and three associates In the stock
exchange sensation here were charged
at the Guildhall today with conspiracy
to obtain 100000 ($1,o45, o00) by false
pretenses. The four men were refused
bail and remanded until September ~.
The crown prosecutor intimated fur
Their charges are likely to follow in the
case. The other accused men arrested
with Hairy are Edmund Daniels and
Albert E. Tabor, company directors, and
John G. Dixon. secretary. HAIRY,
Daniels and Tabor all had passports
which they obtained yesterday ana
which the police now have. The case
has created great excitement in Lon
room was damned, while crowds gather
ed outside.
$40,000,000 Estimated Loss.
The stock exchange committee sus-
pended permission to deal in the stocks,
after the slump was estimated to have
cost shareholders $40,000,000. It is
understood the Bank of England Is
taking hand in efforts to meet din
cult situation. 1t is feared losses will
be widespread, and that many stock
brokers will be involved in them.
HAIRY consulted lawyers and on their
advice visited the director of public
prosecutions, accompanied by fellow
directors, Edmund Daniels, John Dixon
ments and subsequently went to the
headquarters of the. city Of London
police. This visit was equivalent to
voluntary arrest. It was stated they re-
manned at police headquarters last
night pending formal charges against
them.
Insurance Office Clerk.
HAIRY was clerk in an insurance Of
flee just before the World War, but was
dealing in millions before he was 80
years old. He became very wealthy.
Then reaction came and the slump that
followed the boom of 1919 and 1920
proved disastrous to thousands of
shareholders of his companies. He re-
covered and made several successful
transactions, one Of the latest being the
acquisition Of a new company called
Steel Industries of Great Britain. It
has issued capital of about $4,000, 1000
(S40,000 ,000). This company, 1t Is
stated, recently acquired the shares of
the United Steel Companies. Ltd.
The stocks placed under the exchange
ban are Corporation of Wakefield, A
per cent; Drapery. Trust, Associated Au-
tomato Corporation; Corporation &
General Securities; Investment Trust,
Photomaton Parent Co. and Retail
Trades Securities.
S25,OOO,OOO Total Capital.
These issues have a total capital of
more than S25,000,000. Besides the
Hairy concerns, the prohibition affects
the shares of two issues with which
Hairy was formerly connected, the
Drapery Trust and City of Wakefield
Corporation. The suspension of deal
ingS in the last named. a British
the Wakefield stock was issued through
the Corporation & General Securities
Co., involved in the group. The stock
was considered virtually a gilt-edged
security. The suspension of trading
will have the effect of protecting share
holders who otherwise might have rid
themselves of their holdings before an
opportunity of arriving at the true po-
sition had occurred.
Many Cities Hit.
Manchester, Liverpool, Cardiff, Hud-
dersf1eld and Sheffield are mentioned
among places where financial and bust
ness interests are expected to suffer
considerably.
The Marquis of Winchester. who is
chairman of three of the HAIRY COM
panies and the Drapery Trust, said
that he was not the least worried I'VE
are as anxious as anybody to salve as
much from the collapse as possible"
he said. There are still very good as
sets"
An an indication of the extent Of
the slump, shares of the Photomaton
Parent Co. dropped from 1925 to less
than go cents.