“BUCKET SHOP” FRAUDS

Poverty Bay Herald, Volume LV, Issue 17498, 19 June 1931, Page 4

“BUCKET SHOP” FRAUDS

STOCK MARKET RACKET NEW YORKERS LOSE £20,000,000 NEW YORK, April 25. Tt is alleged that stock market racketeers swindled New Yorkers out of £20.000,000 last venr, and that the Public Prosecutor, Mr. Crain, not only failed to prosecute, but put obstacles in the way of the Bureau Securities, which is attempting to clean up Wall Street. This charge, made by Mr. Washburn, the- former Assistant Attorney-General, who is in charge of flic Bureau, came as the climax to Judge Seaburv’s inquiry ■into Mr. Crain’s conduct of bis office. lie is accused by the City Affairs Committee of permitting racketeering, vice, corruption and graft to flourish practically unmolested. Tn defence the Public Prosecutor declared that his staff was inadequate to curb the widespread racketeering. His excuse for not probing into the shocking conditions which permitted the police to nrey upon women or have them committed to reformatories unjustly was that he took the word of the Mayor, Mr. Walker, that grafting had stopped. He maintained that all his acts in office were dictated by intelligence and common sense.

Mr. Washburn, however, testified that he had given Mr. Crain details of fraud hv a. dozen or more Walt Street bucket shops, hut the Public Prosecutor had obtained not a single conviction, and many alleged swindlers were never brought to trial.