The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-08-04
Securities Board Chief
Ignored Many Warnings,
Says 0VerIey.
Continued From Page One)

head of Mann & CO.. should have
had in his possession at the time
of his sudden DEATH" asserted Mr..
O'Neill.
Mr.. O'Neill charged that it was
his information that the widow of
Mr.. Ullman, who lives in Gary, is
of the belief that securities had been
taken from his office after his
death.
our personal investigation of
number of accounts claimed to be
owing by Mann e. Co. indicate that
the losses have been grossly exag-
gerated." he declared.
In the meantime reports from Mr..
Overley of the opening of an alleged
'bucket-shop" in Indianapolis as
well as in South Bend we're verified
by Mr.. O'Neill and he said his COM
mission was investigating the Oper-
alton of one firm.
Any time Mr.. Overley or any one
is willing TO swear to an affidavit of
a specific act of violation of the Sc
curitieS act our department will be
willing to prosecute through the at
.tOrney-general's office in a vigorous
fashion, he stated.
Inquiry Is BrOadened
Two other bucket shops" in
South Bend recently had closed
their doors with alleged court adj
missions of the loss of $4,000 to in
veStors. Mr.. overly added.
He said his bureau was investiga-
ting the opening of the new firm in
South Bend. He said it had in
stalled seven telephones for drum
ming up prospects.
Mr.. Overley charged that, while
the investigation of Mann & Co.
went unheeded under the present
administration, under previous Sc
curities commissioners suppression
of bucket shops" had been vigor-
Gus.
He asserted that Mr.. O'Neill was
grossly negligent" in not investiga-
ting Mann & Co. and saving its
clients from a loss which, he said,
amount to S250.0OO.
L know of no licenses revoked by
Mr.. O'Neill in indianapolis during
his regime" said Mr. Overley.
But under other securities COM
miSsioners, the mere report of the
possibility of bucket shop opera
tionS has resulted in raids being
made on offices and their books
checked" Mr.. Overley declared.
Tells of Previous Probes
ON one occasion I was made a
deputy securities commissioner and
after being sworn in we went to
the suspected securities firm with
an employee of the state securities
| department. We took charge of the
office and all the books. Several
hours of questioning revealed that
I the firm was costing its clients
money. We telephoned the head
Of the securities commission at that
I time. When he heard our report he
said. Revoke their license.
Mr.. Overley charges that when
the operations OF Mann & Co. were
/ brought 10 the attention OF Mr..
/ ONeill. after numerous telephone
calls and letters, many of which
are said to have been unanswered,
NJ. ONeill told him it was matter
FOR the county prosecutor.
Mr.. Overley, however, pointed out
today that the firm operated legally
as long as its license had not been
/ revoked.
Warnings Are Recalled
AS far back as the early part OF
1888. the state securities commits
Sioner of West Virginia wrote to
Mr.. O'Neiu. according to Mr.. Over
ley, and pointed out that Mann 6,
I Co. was operating in Indiana ano
that the company's charter to dc
/ business had been revoked in that
I state.
Mr.. O'Neill declared that each
time he called Mr.. Ullman. aft-
customers had complained of losses
or not receiving settlements, the
account had been settled.
of course it was settled" re-
torted Mr.. Overley. Just as Soor
as Mr.. Ullman knew some one was
I Souawking because of the firms
alleged operations. he was ready to
l settled the account IN full.
Mr.. Ullman refunded $1,000 TO a
man in Cumberland, Tenn, merely
on a telephone call from me-" he