The sun., 1919-04-03
----------s-
TOOLE, HENRY & CO.,
BROKERS, SUSPEND
Stock Exchange Firm Fails
and Edwards H. Childs Is
Named as Receiver.
EXCITEMENT AT OFFICES
Bankruptcy Petition Alleges
Liabilities Of $4,000 and
y Assets Of 100000.


Toole. Henry 4 Co., q New York Stool,
Exchange firm, suspended yesterday
morning and Edwards II. Childs, a law
yer. of So Wall street, was named re-
ceiver. Announcement OF the failure was
made from the rostrum of the New York
Stock Exchange shortly before noon and
in very short time 1t was known
throughout the financial district. No
statement Of assets or liabilities was
forthcoming. These schedules will be
withheld until the receiver shall have
made a complete inventory of the FIRMS
condition.
The suspension was the result of the
filing Of an involuntary petition in bank
rrptcy against the company, according to
ono of the attorneys for the firm, who
made the following statement, the only
direct pronouncement forthcoming from
the firm throughout the day
AN involuntary petition in bankruptcy
was filed against the firm this morning
In the United States Court and Toole,
Henry & Co. consented to the appoint
nent of a receiver. Edwards H. Chids
has been appointed receiver. No state
ment of assets and liabilities can be given
nj the present time, but after the receiver
has had an opportunity of looking into
the books an announcement undoubtedly
will be mader
Judge Augustus n. Hand before whom
the court proceedings were taken. fixed
the receivers bond at $4,000. The ap
pointment OF receiver was made in ac-
cordance with a petition of Charles A.
Robertson. who. with David Epstein and
Roland R Robertson, haC fled an in
voluntary petition in bankruptcy against
the firm. The petition alleged that the
firm was insolvent and that its assets
were estimated at 100000. with liabili-
ties of sss0,0Oo.
At the Office of the receiver yesterday
afternoon 1t was declared that Mr.. Childs
had no statement to make. His appoint
ment, II was said, came as a surprise to
him and that he had had no opportunity
to go into the situation. After he has
familiarized himself with conditions 1t
10 believed that statement from him
will be forthcoming.
Crowd BesieEes Omces.
The news of the failure spread through
the financial district In an incredibly
short space OF time. and soon the offices
OF the firm at 120 Broadway were filled
with an excited, gesticulatng. shouting
crowd Of customers, brokers and mes
sengers All were demanding in excited
tones that the firm turn over to them
Immediately the securities or money or
other things of value which they said
they had on deposit there. and at times
it looked as though a healthy young riot
might develop. It was more than an
hour before the crowd was made to un-
dtrstand that the administration OF the
firms affairs had been taken out of the
hands OF the members and given over to
the receiver, and even then many refused
to leave the Office without what they
declared was coming to them.
Perhaps the most persistent of these
were brokers' representatives men
from other brokerage houses which had
delivered stock to Toole, Henry Co.
during the morning and had not received
a check in payment. They holly de-
manded the return of the stock ceriifi-
Gates which had been delivered thus and
In many cases appeared to be ready to
take the law into Their own hands and
obtain the securities by violence or In
any other way possible.
One man entered the office loudly
acclaiming that he wanted 400 shares
OF Lehigh Valley that belonged to J.
-.
He waa not the least bit pacified when
told that all securities delivered that
morning were in a box separate from
the rest Of the FIRMS paper and that
they would be turned over to the re-
ceiyer for his disposition. And while
he was loudly demanding his stock a
diminutiye messenger from another
Arm. who stood beside him. cast a con-
temptuous glance In his direction and
xx-ifh rtrO
"Aw. wat yu maxim all the holler
about lousy hundred shares for? Didn't
leave six tousand shares here dis
morning dat I can't get hold Off"
Told TO "see Receiver"
Other brokerage houses had represen-
tatives In the Toole. Henry q Co. offices
seeking the return of securities which
had Just been delivered. but all were
turned away with the same admonition
to see the receiver. One man threat
ened criminal prosecution against mem
bers of the Arm, declaring that you ac-
cepted delivery of the stock when you
knew you were busted, and I'm going
to get the District Attorney after you
That's larceny, Just plain larceny" He
was told that IL he cared to lay his
case before the District Attorney that
was his privilege, but Frank Aranow
OF the law Hrm OF hoeniB, SittlHielu
a Aranow, attorneys for the firm. ad-
vised him to consult his attorney be-
fore taking any such steps.
But" the questioner persisted. you
aid accept the stock when YOU knew
you were insolvent didn't you?"
I'VE accepted the stock, all right"
the attorney replied, hut as to whether
or not we knew we were insolvent-
that'e another matter"
The bankrupt firm maintains that It
knew nothing of the bankruptcy pro-
ceedings, according to Mr.. Aranow, and
that 1t &C pied all deliveries yester-
day in good faith. The appearance OF
the receivers agent at the offices to
take possession was described by the
lawyer as "swooping down upon u.s."
taking the Arm entirely by surprise.
One woman who said she had "a lot
OF money tied up In there" was seen In
the hall of the twsnty-sixth hoor OF
the Equitable Building. on which are
the frm's offices. All OF the doors
entering Into the offices were locked on
the inside. and In answer to her per-
sistent rap q boy connected with the
office came out. She demanded to see
Mr.. Toole and was told that he was
out. Then she asked for Mr.. Henry
and was told that there amt any OF
them In" That reply made the woman
very angry indeed, and pointing q fin-
ger at the unfortunate youth she
counselled: Don't you lot them learn
Won how 10 lie, young man. cause II