The New York herald., 1921-12-31
BROKERS HERE FAIL
DEBTS $7,SOOyOO0
Receiver Named for E. w.
Wagner a. Co. After Ex-
change Inquiry.
MARGIN BUYERS HIT
Business OvereXtended,
Counsel Says: Assets
Are $5,00O,00O.
CROWDS ABOUT DOORS
Police Curb Needed at Finan-
cial Crash for First Time
in Years.
CROWDS ABOUT DOORS


its doors yesterday and for the first
time in years the Wall Street district
saw policemen pushing back clients oi
Stock Exchange firm.
There was no rioting or great dis
order, but the crowd-one of the most
picturesque Wall, Broad, New streets
and Exchange place could muster
curged around the doors of the Wagner
Offices, SO New street, groaning and
arguing and cursing
There were no women in the crowd
1T wasn't crowd you would see were
the scene done for the movies. But
half the railbirds who haunt the Street
buying on margin when they have the
money and hunting up angels when
they haven't were in the mob.
That was one of the surprising
things about it. Inasmuch as the
closing was forecast it seemed as il
these incurables should have run from
under while there was yet time.
In the crowd were many young clerks.
rather pinched and dismayed looking,
They were the most violent of the
cursers They were in as far as their
last cent. Some were clerks from offices
: in the financial district and some had
come from uptown.
Many OF them didn't appear to be
more than 1s. The old timers--the fa-
miliar railbirds who haunt Belmont and
Empire and Saratoga during the racing
taly fhair t,1adrfftp like
the battle-scared veterans they are
To them 1T was just another setback
with something of hope attached.
The hope lies in the statement issued
by the Wagner firm that 1t believes its
assets will be ample to take care of its
obligations
Firms Conduct Scrutinixed.
The closing OF the Wagner concern
came with something of a crash. To
begin with. Emil w. Wagner, the Stock
Exchange floor member of the firm. was
called before the Exchanges COMMITTEES
on business conduct and told the COM
inittee was not satisfied with what 1t
had learned In investigating the COM
pany's affairs. At once the doors of the
Wagner offices closed and the crowd OF
spectators who had been making the
chairs OF the Wagner board room their
offices were herded into the street.
And almost at the same time the
Wagner offices in Brooklyn. 26 Court
street. closed and n similar and less
serious crowd congregated there. To
add to the finality of the suspension an
involuntary petition in bankruptcy was
filed against the firm i'm the United
States District Court. Hays & Wad-
hams appeared as attorneys for the
brokers. saying their clients assented
cheerfully to the assignment. Hays
HirshfIeld & Wolff appeared for the
petitioners.
These petitioning creditors were Peter
!. Rogers, ass Park avenue. who claims
$4,000 he says is due him on a margin
account !, Rudolph Guenther Russell,
inc, 131 Cedar street. $500 for adver-
Using, and Frederick Boschen. who claims
/, 81. 900 in money advanced for the pur-
chase of stocks on margin.
1t was not possible to obtain many
details of the closing. but Henry III.
Kaufman. speaking for the Wagner firm,
estimated the liabilities would amount
TO $7,500.o 600, while assets which we're
not itemized would reach $5,000.000.
Judge Hand appointed John S. Shep-
pard OF 81 Cedar street receiver, fixing
the latter's bond at 100000. The pc
tition, summarized. had IL that various
banks hold large blocks of stock de-
posted by the Wagner concern as col
lateral for loans. Furthermore it Is
alleged the firm has outstanding large
number OF credits These. the petition
crs demanded, should be collected.
Firm "Caught Short"
1t is the generally accepted opinion
that Wagnf + Co. we're caught short
on stocks. has been doing an enor-
nous business despite the fact there
has been an almost continuous bear
market the last two years. The firm
has about forty branch offices through
out the country and. in addition, about
the same number OF correspondents In
towns and cities where there is no
branch office
Mr. Hays of the Wagner counsel
issued the following statement:
1.-THE firm of Il. w. Wagner & Co.
has been In business for thirty-seven
years and we hope the liquidation OF
our affairs will Justify the confidence
I that has been placed In us. Unfortu-
nately our business was over extended
and our capital became. in the judg-
mcnt OF the New York Stock Exchange
authorities, insufficient 10 assure COM
plete protection 20 our clients.
''Thc business is out OF our hands, but
we shall render every assistance pos
siblc TO those In charge. III properly and
gradually liquidated. we believe our as
sets will be ample TO take care OF our
obligations
The Wagner firm has ten days In
which TO answer satisfactorily the
charges preferred by the exchange au-
thorities. Just what these charges were
was not made public.
A CHICAGO, Dec. 30.--Petitioning credi-
tors appeared before Federal Judge X. NJ
Lands to-day and filed an involuntary
petition In bankruptcy against j.. w.
Wagner & Co. grain and stock brokers,
which failed to-day. The petition de-
cares the estate OF the company has
substantially s2.ooo,O00 in assets and
for the preservation OF the estate II Il
necessary that receiver be appointed.
E. w. Wagner. president of the COM
pany, ISSUED statement criticizlng the
New York Stock Exchange. lie said
the exchange had promised to take nc
action until after 2:15 O'Clock this AZ
ternoon. but had failed to keep the
promise u. w. Wagner 4 Co. he said
were long ON stocks which were beina
closed out Tho company was long 1000
900 bushels Of corn 3.oOO,oO0 bushels o.
wAeat. 2.5coc0o bushels OF oats ar1