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The New York herald. [volume] (New York, N.Y.) 1920-1924, March 09, 1922, Image 3

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CIW BAR OBJECTS 1
TO BLUE SKY LAWS
Will Not End Bucket Shop
Swindles, States Pro
test to Albany.
ONLY INCREASE EVIL
Enforcement of Martin Law
hy Attorney-General,
Is Advocated.
HAS NECESSARY TEETH
No Prosecution Vol Started
T'lider Measure Enacted
Last Year.
ivr bucketing. fraudulent se
mrlty promotion.- and other foirns of
lock -swindling with which the money
market recently has been afflicted.
? ill 's nor iie ?n tlie proposed new blue
:?ky Jawa pending before t!ie I.esis
lature, according io a nrote^t sent to
Albany yesterday by the committee or
the amendment of the law of the
Association of the Bar of the City of
New York. 'Hie pending measures can
r?sult only in a greater evil by placing
an additional and unnecessary burden
upon financing business, the c-oinmit
ti-e declared.
In lead of enacting new laws, tbo
committee recommended that "the
i S;ate of New York in this hour of
financial crisis should jrivc a fair trial
to the statute which it enacted last
year 'ihe Martin law), supplemented
by activities of local district at
torneys." That law. it is pointed gut,
"conferred broad powers upon the At
torney-General, with or without qom
plaint, to make thorough investiga
tion; to require the pnoduction of
books: to take action; >to obtain in
junctive relief, and to prosecute crim
inally."
The position of the Bur Association
? upports that of tiic New York Sto ?!<
Exchange and a large number of other
brokers, Investment bankers and fin
anciers, wbo prior to opposing the pend
.ng measures had urged the Attorney
General to exercise the powers given
him under the Martin law. So far as
Is known no prosecution by the Attorney
General has grown out of the Martin
law, despite the widespread swindling
activities which lately have been shown
to exist. Attorney-General Newton has
explained that his department haa not
Heen provided with the money to carry
? >ut the law
Two Blue Sky l.?w?.
There"are two proposed blue sky Un"
iv>ndinsr in tlie Legislature, one intro
duced by Senator JJug^an and Assem
blyman Betts. ami the other introduced
hy Senator Katlin. Both measure.* pro
vide for supervision over securities to
prevent fraudulent issues, the Duggan
bill being the more drastic. After point
ing out the handicap on legitimate busi
ness involved and the inability of such
laws to prevent crookedness, the Bar
Association's committee says:
"As !i matter of fact, on this .subject
of statistical detail, the State will al
i\ ays And itself in a dilemma, that, Iri
? iriier to enact a law w'tMi vlll psevent
? sw'ndler from r:heathi* a fool?
?imlng that any inch lnw. other than
? outright penal law, run be dev'-ied
!t must necessarily enact . o (lrutl( a
l.iv a? to prevent capitalists from In
venting their money: end, conversely, if
th" Legislature would enact a law which j
would encourage the employment of1
'? ipital. -uch a law cannot be of the t
transcendent nature as would protect j
fools against their folly."
\ew York la Financial Center.
The committee's protest further points I
out:
' The 1'nlted States, if not the whole |
M iirid. looks to New York State for j
i "npitnl for the development of national <
? sources. Industries and invention*, i
Vew Verk State has become .% great
'Ir-inchil center of the world. The
maintenance of the high surtaxes in
fni nei t'on with the FVderal income tax
'duces to a minimum the amount of |
i apltal available for development. Capi-'
;a! i.s sensitive. The capitalist who Is
urged to loan large sums of money for
development will not Invesi his money
'n New Tork If such investment Is
?nade burdensome, while other countries
<nd Stales afford more favorablo op
portunities. Any law which places op
pressive burdens on thos? who art
?sked to in\est their canltal tends to
drive capital from itie Stale- enacting
-iicii n law into other countries and
.?*'atXew Tork should be scrupu
lously careful, in attempting a remedy
for an alleged evil, not tin reby to
? reate a greater evil.
"A blue sky law does not tppijr to
Exchange transactions. It Is not de
igned to protect speculators against
unwise gambling In securities. Its sole i
purpose Is to legislate so as to protect j
gullible Individuals from the deliberate
Traui] of swindlers in the actual sale of
worthless securities. Thus it doe* not
even apply to the so-called 'bucket
shop' ei 11, which consists in the fall
tire to cany out orders in legitimate
secti ri ties."
' HE AND 'WALL STREET'
AT WAR, SAYS BANTON
Finish Fight for New Laws
Announced.
District Attorney Banton has "a fight !
with Wall Street" on his hands, and In- j
ends to go the limit to get legislation!
ihat will put stock brokers under State
control, he said last night. He de
ma nded:
"Why should brokers be so sacredly
* protected? Why shouldn't they be subject
10 the same supervision as bankers and
insurance men?"
Tils statement was not prepared, but
va-made in an interview In the Criminal
'?ourts Building He began hy complatn
tg that, under the present law he would
to go to the I'nlted States Supreme
?'ourt to get an order permitting him to
?\amine the book? of more than a score
of brokerage houses and alleged bucket
?hops, against which Indictments are
ought.
After lie had read the amendments
uggested by the Bar Association to the
i proposed lsw now before the Legislature,
one of the reporters said :
"It looks as if you have a flght on your
hands with the Bar Association.''
"Not with them," he replied, "but I
have got a fight on with Wall Street."
"Isn't. It right," he continued, "for the
"tate lo top in and exercise a control
that Will porter! the man who gives ?
First Photographs to Reach This Country of the Wedding of Princess Mary and Viscount Lascelles
stock broker money to invent for him''
It seems to me that an investor in the
Industries of the country should have
hi# money protected from theft nnd mis
appropriation just as should the man
who places his money in a bank or in
vests it in Insurance."
Returning to his difficulties In the
prosecution of certain brokers about
whom he has received hundreds of com
plaints, he said it would mean endless
delay In getting justice unless he was
granted power to look over their books.
Kinds Martin l.mv I in .11 i<l.
"The Martin law (a measure passed
by the Assembly In 1,121) enables the
Attnrney-i jeneral to proceed against
brokers and examine their books with or
without ;t complaint bring filed." sail
Mr. Ranton. "But the courts have found
that, it Is contrary to the Constitution ot
the United States and therefore the law
la not effective.
"Our appeal bureau Is now at work
rerlewinn an order restraining the re
ceiver of H. S. Rusk ay & Co. from de
livering thei^* books to rne. This is the
test case and It will have to ro to the
highest court. It will have the rlKht of
way, of course, because It. Is a criminal
case, but even then It means delay."
Mr. Ranton was glad the Katiln bill
had been reported favorably at Albanv.
This art provides the licensing of stock
brokers and puts them under the State
Banking Commissioner.
Mr, Ranton would prefer a "blue sky"
law. however, lie said, bei.uiir it pro
vides that any security offered for public
sale must first he Investigated by th
proper authorities to determine Its valit'
and to eliminate wild cat propositions.
Mr. Ranton pointed to K. I?. Dler A
Co. as an example. They failed recently
for 15,000,000. wilh only llrto.flon assets.
In other words, he >ai<l, the assets were
2 cent.* on the dollar. Tills would be
Impossible under such regulation as he
propose >, he Insisted.
M-tnj additional < ? ini-l iin w r? ie
^eived at the District Attornej '* o(H< e
, and another indicted broker surrendered,
wa? arraigned and lieltl tinder i",
ball. Thin was Nathaniel Lewis, for*
mi rly of Kory & Co.. 42 Broadway, in
dicted for grand larceny, on complaint
of Otto Best, 41 rt Bast 106th street, a
customer.
Arthur Evans. 22, 246 Emei ->>n place,
Brooklyn, formerly of the brokerage
Arm of Franklin, Taylor & Co., Broad
.street, wafc arrested at his honf on *
j larceny chant". He Is acmsed joint! v
with other person? of defrauding luvid
f.ardlncr, who lives at the Metropolitan
' Club, of $70,000 In a stocl. deal.
The cotton brokerage Inquiry Will be
, resumed next Monday Mi. Rmton .'aid
m reference to Magistrate McAdoo's
Quest that Southern planters be < ailed
to testify :
"Wo are going to confine our Invent |
gatlon to whether or not ? < rime has
been committed. So far as I am ron
?Mrnntf tl*re will be no Jo.v riding ur
liere for the cotton growers "
HAYES PROTEGE ARRIVES.
1 oniiit Porto Ttlonn to llnvo Trr?t?
ment for nenfnrs*.
Pierre Garcia, native of Haytl, arrived
yNltlfily b.v the Munson liner Munanvr
lit the hope of having his liearinr re
stored tlirough an operation \>y an Am?r
l< 'n specialist.
According to (he chip's officer young
Garcia'a mother worked in ihe Presiden
tial household of I! ilierford H. Haves
.tore than fortv years ag\ and relatives
i>f Ihe Have- family have become Intc
? -led in his affliction. !!.? had a special
permit from the Immigration authorities
a1. Washington. and Hcott; H. Hayes mot
him at the pier,
FOt VP ANVTI1INOT
If *e, -rp If It 1i MlVertltt'l In the T,o*' ?m1
I'vund LolumiiJ uf to d?y'>i Nrn \ nrk lleiairi
In Abbey, Palace and Streets
The upper picture shows, left to right, King (George. Princess
Mary, Viscount Lascelles, Queen Mother Alexandra and Queen Mary,
standing on the balcony of Buckingham Pala>: after the ceremony,
being cheered by thousands who filled the Mali jn the oval Queen
Mary and two of her princely sons leaving the pa'acc for the Abbey.
In the picture of the ceremony in the Abbev the bridesmaids are
standing on the steps of the altar; the bride and bridegr ?om are
standing before the Archbishop to the left. To the right ar : seated
members of the royal family. The police In Mie other picture are
holding the crowd back in Piccadilly. In its rotogravure section
next Sunday Thk New York Hkrai.d will pr 'it two full page* of
photographs showing every phase of the ceremony in the Abbey ami
of the wedding processions through the streets.
BODY OF MISSING WHIP HUSBAND BEATER,
DUCK HUNTER FOUND CRY FROM MARYLAND
Hill Lost in November With Forty Lashes for Brutal Wives
Two Companions. in New Measure.
Tho liorty of a tm*n found yesterda;.
tn Jamaica Bay at Heach Sixty-fifth
street, Rocky wb)'i Queens, ? v i<1??it:
licit last higbt nF tint of Auric t Mill.
Ir., of Til Bushwlck avenue, Brooklyn
The identification 'vns tnndc h\ Mill'"
father and brothers, Krederlcfc and
Charles Mill.
Mill went duck hunting November 1!
with Walter Drews of .Springfield and
TVarsall <"re|Rhton of Brooklyn, and
nothing tiad been heard of them since
although a few days after they had
*nnf their boat, containing two fthotfruic*
,in<1 i gtove, wk fi.iin l drlftlni:
VNNArous, March S.?Time honored
pi erogatlven enjoyed by women are
menaced in ? bill Introduced In the
Le(tlntatlire to-day by Senator Benjamlt
\V. I'ox of llnltlmorp entitled "An act
to '-jive equal rights to men."
One article, v hleli might lie aimed at
th< wifely custom of raiding husbands'
trourer* pockets, provides ttiat the wlft
who take* her husband'." mone rna> In
tried for embezzlement or larceny. Th?
bill also provides ttiat ;
It shall be the duty of the ? |fi. to
contribute st least one-half to the e*.
pen-*e? of the linm* and the support of
the f.Mlli.
DRESSMAKERS WANT
HAGGIN'S INCOME CUT
Judgment Creditors Offer
Collection Plan.
Vfemncea <fc Co., Inc.. a dressmaking
flrin, started an action In the Supreme
f'ourt yesterday acalnst Ben All l'?s
am, artist, and the thr^i trusters of .t
trust fund lie <H?tab1l>h<'<i (n 1914 l>r
thi benefit of hie fornior and prc>ent
wives and their children. fllH* firm asked
for $9,917, which Jt saya Is duo, for cloth
ing lupplM on Itaggln's order and was
tcf be paid from the fl2r,.<i00 t\ year .t -
;>ble to IfaKitln's dependents under the
t ruat.
Frances & Co. aak the court to And
that $25,000 a year Is enoujrh tor ilasr
cin to live on and that any money
above that amount par able out of a
fund established bv him ought to go tn I
Ills creditors before It go?s to his Vitus
iitid children.
The trust' of the fund aw William
11 Coadby, Alan M<Cullo!i mid I'lllutt
M. Wvst. Th?y began an a 'ion a
month ago n?kinnr for a Judicial deter
ruination of the terms of 111 tri. t
lla.nKin. a grandson of .lames It Hag-i
sin. Inherited nearly fl.OOO.etiO ntul r
his will.
i>?tlllt\ ON tMHOt i:\Pt.OSIOV.
A grand jury :it New Brunswick. N.
?T., bepan yesterdav an Investigation Info
111o sbrit explosion which on Monday
killed Francis V Ifoltou, n laborer, it
Mouth Amboy. Holton and torty-sit
othera were dismembering three-Inch
shell- it! nrd?r ?ha? **M> metal rntght he
; 'fit:
COCKS IN SANITARIUM
SIGNED AWAY PROPERTY
E. R. Freeman Admits Getting
New York City Home.
Surrogate Cohalan anil a Jury heard
further testimony yesterday In the con- j
test brought by the relatives of David
J.- forks to have set aside a will hv
which he bequeathed the bulk of his es
tate of 1100,000 to Edwin It. Freeman
of Mount Vernon.
CcK-kr lived for a number of years In 1
130 West 137th street, h'lt ju?t before
his death became a pa'ient in a sani
tarium in Newfoundland, N. .!. where
he flied In February, 1H20, in hi* eighty
third year.
It. Is the contention of his relatives
that his will was the result of undue In
fluence. It wan pro veil Tuesday that a
lawyer employed by Freeman drew
t'ocks's will, and that It was execuetd In
the sanitarium, with the lawyer and a
former moving; picture actress as wit
nesses.
Freeman yesterday 'dmltted Cocks
had deeded to him his New York home
In 1910. and that jtl?<t before he dlod he
executed a deed of. property In Anbury
I'krk to Mrs. Freeman, after Kreeniati
had taken the deed to the sanitarium
and asked him to sign II- The trial will
be continued to-day.
Ml T\\ ?\ HVIMil INTHttKHf,
Jurgc Thomas B. I'aton. general coun
sel of the American Hankers Associa
tion. in an opinion made publlr yester- (
day. contends that depositors In savings
banks In N>w York Stati will not have
to pay normal Federal Income tax on
the Interest, earnings of their deposits,
tnterefct. paid to depositor* hy mutual
;|' inc*i h;inl?s Is <-1fis?ed bv .fudge Paton
, .1 I.', t'd lie, at <1 II.I O' I
PRINCESS RETURNS
FROM HONEYMOb.
m
I
Is to Be Known as * Princess
Mary and Viscountess
Lascelles.'
j WILL GO TO ITALY TO-DAY
1 Wedding F'roseats and Dresses
on V"iew at St. James's
Palace.
T.onto n* , March 8 (Associated Picas i
?Princess Mary and Vlseount Lascelles
arrived at Buckingham Palace thi-?
| a fternoon. bavins traveled from yhlfna'..
' Shropshire by motor car In order to
j avoid popular demonstrations if th> v
had traveled by train. Sine their mar
riage in Westminster Abbey February
28 they have been spending the:r how;y
inoon at Weston I'ark.
The couple intend to leave for Hal"
?o-rnorrow and Wl5? epena an extended
, honeymoon at Florence.
"Princess Mary and Viecounteys l.as
?elles" is the title H'inlied to th< Prin
ce-s by the official <ourt circular, Indl
? ;11ii:bt that is the prescribed and for
mal designation of the King's daughter.
Princess Mary a wedding presents, i|,'
I played with her l>ridal robes at ft
, James's I'alace, wore viewed to-day by
; lo.OOO persons. most of them women.
1 who paid a shilling each for the privi
lege. The proceeds will go to a charity
to be selected by the princess.
The people began assembling at daw :
for the exhibition an i numbers of them
stood for hours in a pouring rain await
ing the openlr.g of the palace doors. Tic
exhibition will be op' n five hours dai;.v
; for the present.
OLYMPIC BESIEGED
FOR WEDDING VIEWS
The White Star liner Olympic, In
from Southampton and Cherbourg after
i tempestuous trip, was almost su -
rounded yeaterday afternoon by a fle.
of tugs ;it Quarantine with represent.i
lives of film and photographic news se:
* ices eager to got pictures of the wed
ding of Princess Mary for film show .
.! tifl newspapers.
When all the pictures had been ttirm
over to the impatient men and ,ift-r
i duties had been assessed and paid two
injfs started full speed for Manhatt?<
The <'"ast Guard cutters on duty alon.
? ide the liner gave chase, but permitted
tlie tugs to proceed after explanations.
In the sc. i.nd cabin of the Olympi*
were William and Samuel 1j. Caton o*
Cleveland, sons of Frank Caton. well
known horse breeder of the Middle
West. They had been In Russia sue
lftlT. when they took a string of Ameri
can horses there. They said the K<
i shevlks forced them to work in the
1 interbreeding of stock. When the Sovh t
took charge there were 25,000 full
blooded horses in Russia, but now ther-;
are only 4,762. said the brothers.
Jo Davldaon, sculptor, who has been
abroad a year, brought a bust of Ans
:oie France made at the home of t! ?
!,ovelhjt. It will be exhibited here nest
j week. Mr. Davidson lost forty pound*
while awav because of an operation for
stomach trouble,
i
Samuel Pepyi
259 years ago made this in
in his Diary: "Fowl kill
December. Alderman E
said he did buy. and pi
into the box under his *
did forget to take them ot
April next, and they then
found there and were thr
the frost as sweet and fresh
eat as well as when first kil
Through the "frost" of mo
refrigeration, the whole c ,un
try is kept supplied with fowl
as fresh "as when first killed."
I nd in .Xrir York" in thousand* of
its Knickerbocker ler that keep?
thr lotrl fresh end street until it's read if
to roast, broil, fry or fricassee.
Knickerbocker
ICE
Company
642?Sh*ffi*M Aftmr CofTe* Set
Gr*c.tsn Ed&*, $20
THE secret of Oving
ton's reputation for
always having excellent
gifts rests almost as much
in what they reject as it
does in what they display.
O VINGTON'S
" Thr Gift Shop of Fifth Av9ou? "
Fifth Avenue *t 39th Street
WHEN YOU
DRINK WATER
Drink Only the Best
POLAND
WATER
ORDER BY THE CASE
FROM YOUR DEALER
OR
POLAND SPRING COMPANY
I ISO Broadway, New York
Tel. 4* IS

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