New-York tribune., 1907-11-09
KESSLER RECEIVER.
{. D. Serton AppOinted-Attempt-
ed Transfer of Assets alleged.

Lawrence D. Sexton was appointed yesterday re-
eiver ot the banking firm of Kesser & Co. by
Judge Holt, in the United States District Court
-d his bond was fixed at $l00 90. This action fol
owed the fling In that court Of involuntary
peution in bankruptcy against Alfred Kessler, r.
: FIinsch No. 30 East 69th street and William X
iIlett, composing the firm OF Kessler & Co, by
reditors with claims follows: Cripple Creek
central Railway Company, a Maine corporation
10000 for money deposited: James +. White & Co.
1900 upon drafts, the payment Of which, 1t is de-
dared, has been refused. and the Schweigerische
Bank Verein of Switzerland. for 100000 and up
gard upon bills OF exchange. The allegation was
made in the petition that the firm had committed
an act of bankruptcy in making a general assign
for the benefit of creditors TO William Will
ans. October 90.
The court especially enjoins any from trans
ferring disposng OF any stocks. bonds or securi-
Ges IN which the alleged bankrupt has an interest
Among those holding such collateral. the court par
icularly enjons Henry +. Kesser. of Manchester
England, and the firm OF Kesser & Co., Limited
also Of Manchester.
In the petition asking receiver John Larkin.
sf No. II Wall street, representing the pettioning
creditors. says that Kessler & Co were engaged.
among other things. in selling exchange on Eng
and and other foreign countries the acceptances
being secured by deposits of collateral in the hands
Df trustees Kesser & Co. 1t is further said. had
intimate business relations with hessler Co. Linz
ted. OF Manchester. England, extending over a
ong period of years, tire members OF the two
houses being related and that at the time Of thu
general assignment of Kessler & Co. in New York
October 80 the Manchester house said it was a
rreditor in the Of $4,000 for draft and ex-
change acceptances and secured by collateral de-
posted amounting to par value Of Ao0o,oeo
The petitioner alleges that such collateral was
OF the actual physical possession of hess-
Ter q Co. of New York at any time, and that
shortly before the New York assignment Henry F.
Kessler. one of the Manchester partners. came to
New York knowing kessler & Co. of New York,
would fail shortly. and took possession Of the Sc
curities referred to- at least attempted 10 do
The attempted transfer OF securities, list Of
which is given in the petition. II is alleged, was in
fraud Of the rights of the petitioner and other
creditors. and constituted act Of bankruptcy, in
that il created unlawful preference in favor OF
Eessler & CO. Limited, of Manchester.
The United States Circuit Court of Appeals re-
Gently held in the Heinze bankruptcy case that
United States District Court without power
10 issue order restraining the sale of securities
hypothecated by a brokerage house, when the loan
had been made with the understanding that the
holders Of the collateral could sell the under
The rule" Of the New York Stock Exchange govern
ing call stock loans. How this VIII affect the affairs
of Kessler & Co, with its London concern, will
have 10 be fought out by the lawyers representing
both houses, the creditors and the receiver.