Daily News from New York, New York on June 30, 1971 · 36
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Daily News from New York, New York · 36

New York, New York
Issue Date:
Wednesday, June 30, 1971
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DAILY NEWS, WEDNESDAY, JUNE 30, 1971 ys Wall & Mrt W StodSr 0 Securities I5v JF.IJOMK CAIIII.L .1 ine 2'. (Xkws Bureau) Lost and : in the I'n-ted States may amount to ,v:tt tints higher than previous esti-V.,".i St:oif "liy and large" seems apa- w rr.etr.ods to Veep track of stock -'-.itc" ::'.v sticat-.rs wore told today, y To: t .-.f Wilmington, Dpi., head of a i. ! Si-Tck. which was set up last ! a i.iT3 lark on all securities, testified 1 Now V-rk brokerages out of 700 have ,. ": s. nn'f. Sei-Tek sewks to curb thefts wi': o-,vnership klentif ication of stock i r tr- O; :ipp f or) 1, aring before the Senate Permanent Investigations, said his estimate of in ::r, I stolen securities included stock '. :. -af -Mien t'r m p ivate homes, printers, r.fare house. hanks anil the mails. It contrasted an fi'licr e-timate of $4oO million by Attorney :era! John N. Mitchell. We h-'ieve that the hulk of these stolen securi ties lie in the vaults of securities and financial institutions throughout the world," du Pont testified. But he said many banks were reluctant to verify the ownership of the stock for fear of jeopardizing their legal position as "holders in due course." Under that doctrine, a bank is protected "when it assumes loans" of others. Donald T. Repan, chairman of the board of Merrill Lynch, Pierce, Fenner & Smith, the nation's largest brokerage firm, told the subcommittee that services such as those offered by du Pont's firm ought to be made "mandatory" for banks and brokerage houses. He said Merrill Lynch is a subscriber to the service as part of a security program that costs the firm a million dollars a year in New York City and the same amount in its domestic and overseas branches. Regan testified that he was "quite surprised" by Mitchell's estimate of $400 million in stolen stocks asserting, "I had no idea there were that many stolen securities around." At his firm, he said, the average annual total of unrecovered thefts for the past five years has been $250,000 a year. Regan described elaborate security measures at the firm. He urged making security thefts a federal crime, mandatory reporting of missing stocks and bonds, and abolition of certificates listed in the name of brokerage houses rather than individuals. Eleven Sought by Police Work on Wall Street Brokerages A check of fingerprint records disclosed that 11 persons who are wanted for arrest are working for Wall Street brokerage houses, State Attorney General Louis J. Lefkowitz said yesterday. In some cases, bench warrants for non-security industry crimes dating back to 1961 are outstanding. Lefkowitz said. Warrant squad police began searching for the 11 yesterday and arrested four before the day was over, Lefkowitz said. The arrests were the first resulting from a state law that requires employes of brokerage houses to be fingerprinted, in a program to curb securities thefts. foplef on enies Any nelson Kickbac liole knot By ALEX MICHELINI Ajrinp; Hudson County Treasurer Joseph Stapleton, the alleged scorekeeper of payoffs in the multimillion-dollar kickback conspiracy, flatly denied on the witness stand yesterday that he ever received cash from contractors or delayed their checks t force graft payments. "Did yoi ever conspire with anyone to violate the law?" asked ni attorney, Lawrence Brady Jr. "No sir. never," declared Staple-o.:i. 7". who begins a new three-yen r term as treasurer today. He v. as the third of the eight defend-.' nt-i to take the stand. Durinjr his hour of testimony. John J. Kenny that Stapleton kept an accounting of the graft and held up county checks until contractors came across with payoffs. In fact,, he added, the only time he ever handled any mon.'y belonging to a contractor was last summer when he got an en velope from a mystery man in ,.f m.. 'n,iu-'. r i the Hudson County Administra- 1'en.o.ratic Organization. de- I Building, and was asked to s. i il.e.1 himself as a lifelong friend ?er ' to Freeholder Walter f (..!? Loss John V. Kenny, i rolte- BUl even lnen oiapieion lnsistea, ne uiun t. Know nat $18,000 was stuffed inside. Expanding on testimony he gave to a federal grand juiv last November, Stapleton said the unidentified giver "mumb'ed something about Manning." The P it Sta; leton swore repeatedly latter apparently referred to ;!;:r ne rever took part in any ; frank G. Manning, former coun-m ;i'-.rt..vn plot, and he reject-.-d J ty engineer who turned gover.i-t'ie te--imonv of formrer official ' ment witness. Me s;ni he hroke with the organization ;i!ong with Kenny in wi:en Frank (1 Am The Law) H it ie w as on-teil from power, ar l he s;tni Kenny hail a lot to do ui:h -retting him some of his ap- The money,, it was testified previously, was returned by Wolfe to John J. Merrigan in the men's room of a restaurant, allegedly tc hold until the heat of a federal investigation was off. Another witness, Howard Hey-den, chief engineer of the New Jersey Turnpike Authority, testified that he recommended the award of a $10.6 million contract to J. Rich Speers Co. of New York City in 1968, and that he had no conversations prior to the award with Commissioner William Sternkopf. An official of the firm had testified that he paid a $20,000 kickback after Sternkopf, a defendant and now a Port of New York Authority member, was asked to put in a good word on the contract. Her Specialty: Soft Sell ' ' ni iliS 1 i l mut m. .M,u.. vijrzzsBm i . - J.' ,'v f' is.''- 1"""lu-- ' ?c 'TX N E WS photo by Tom Arma From left, (ieoree Infante, assistant deputy superintendent of state police; Theodore Vernier, chief of VY. Joint Task Force; Commissioner Patrick .Murphy; William Smith, first deputy city police commissioner; Capt. Robert Howe, state police; Lt. Joseph Colligan, state police; and Assistant Chief Inspector Arthur (rubert, city police department, at yesterday's press conference. Antidrug Drive 'a Success:' Murphy Ry EDWARD BENES Operation Stitch, the drive against wholesale drug distributors in the city by ;i y.oiip of federal, state and city law enforcement officers, was termed "a success worthy of expansion" l.y Police Commissioner Patrick V. Murphy yesterday. In two months of operation in- neavy narcotic areas, the group of SO undercover agents made 66 arrests, seizetl seven firearms pnl confiscated heroin and cocaine worth ? 1 ,."o-.000. The New York task force began operating May 1 following an agreement between U.S. Attorney General John Mitchell. (hit. Rockefeller and Mayor Lindsay. It is composed of SI city policemen. IX agents from the Federal Bureau of Narcotics and I'angtrous Drugs, -and 11 state roli. i n. Relieved to be the only such special enforcement group operating as a single unit in this country, the force focused on the drug-plagued areas of the South Bronx, Harlem and Bedford-Stiiyvesant. They Were Sporty The undercover agents, mostly black, Puerto Rican or Cuban, drove flashy cars, wore mod cloth. ht it he knww they -were heavily armed for protection of their purchases, and had ready cash to buy illegal narcotics, their commanding officer, U.S Special Agent Theodore L. Ver nier, said at police headquarters. They gained the confidence of the mid-level dealers so-called. Vernier said, because they dealt in drugs weighing from an ounce to a pound. Following buys from the dealers, other law enforce ment officers moved in and made the arrests. ff J" " Associated Press Wirepholo Joan Leonardi had hard time convincing owner of Miami auto agency that she'd, be effective "salesman." Owner went out on a limb and hired Joan anyway. Now she's in top 10 of firm's 30 salesmen pretty good for a girl with no experience. HonanAdds Lemon To Mis Loser Brew By FRANK MAZZA William Ronan, collector of dilapidated and destitute rail systems, inspected his latest acquisition yesterday the Staten Island Rapid Transit line and called it "another addition to our list of losers." Ronan, who as chairman of the Metropolitan Transportation Authority operates such red ink lines as the city subway, the Long Island Railroad and the New Haven division of the Penn Central Railroad, said the line "will be the worst loser per passenger mile in our operation." The Staten Island system, an ancient line dating back to the 1880s, will officially come under the control of the MTA tomorrow. It will be operated by the Staten Island Rapid Transit Operating Authority. ; The Staten Island system, including a sizable amount of right-of-way property, was purchased for $.3.5 million from the Baltimore & Ohio Railroad after nearly five years of negotiation. During that time the city had been subsidizing the B&O's Staten Island passenger operations recently at this rate of $200,000 a month. The Staten Island system consists of a 14-mile stretch of undulating trackage running along the eastern coastline of the island. It serves 20,000 daily commuters who ride 47 Toonerville Trolley-like cars. The youngest of the cars dates back to 1925. The fare, based on zones, ranges from 20 to 30 cents. When asked about the fare, Ronan said: "Ii. will stay the same," then after a short pause added, "for the moment." Ronan predicted significant improvements for the line but cautioned against expecting- any sudden dramatic changes. He said the city and state plan to spend $25 million to improve the system and added that an order for 52 new air-conditioned cars already has been - placed". "TUe"cars"1are expected to be delivered in 1973.

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