Evening star., 1922-02-23
BURKE GALLEDuRE
! IN FIRMS FAILURE
Former U. S. Treasurer
, Loses Alt in Collapse OF
Brokerage Company.
BY the Associated Press.

BY the Associated Press.
NEW YORK. February 23.-Liabin-
ties of the brokerage Arm of Kardos
& Burke, which last night went Spto
the hands of a receiver. were va
riously estimated here today at from
$70e,000 to $1.5OO,000. John Burke.
former treasurer of the United states
whose signature appeared on bank
notes issued from early in 1913 until
his resignation a little more than
year ago, declared today he had lost
everything in the collapse of the
business. Bankers who had been as
sociated with him in business were
quoted as believing that he was an
innocent dupe in the development OF
the amazing situation revealed by the
failure.
Matters relating to the firms af-
fairs were 10 be discussed al the
office of attorney for Robert P. Stew
enshon, receiver. here today.
Suits May Bring Money.
Legal evidence against number of
Arms that are members or tne New
York Stock Exchange, might, 1t was
intimated. be the sequel of the faii
of the house of Kardos & Burke. II
was indicated that if these suits We're
successful the firm might pay Its
creditors dollar Tor uolldF-
John Burke was three times Gov
ernor of North Dakota before be-
coming treasurer of the United States
in March. 1913. His partner, Louis
Montgomery Kardos, was poor
immigrant from Hungary nine years
ago, and found his first employment
in the financial district as a $10-a-
week messenger. The nrm had
branches in Philadelphia. Baltimore.
Washington, Pittsburgh. st. Louis and
j., other cities.
Immediately after the announce
ment of the receivership. Mr.. Burke.
whose home is in Washington. D. C.,
announced that he had resigned as
president and director OF the
Progress Bank of this city.
The involuntary petition in bank
ruptcy was filed by Lawrence r.
Beatty of New York.
Declares Bank Not Involved.
Arthur T. Ross, attorney for Kardos
& Burke, as we'll as for the Progress
Bank, issued a statement emphasizing
the assertion that the bank was in
no way involved in the failure.
Mr. Ross said that the information
as to the FIRMS financial condition
upon which the proceedings were
based was several weeks old and that
since that time heavy withdrawals
reduced the liabilities to about
100000. He said it probably would
be found that the assets, upon care
full liquidation, will yield sufficient to
pay creditors. if not in fun: at least
Louis M. Kardo. jr., the other
partner, announced that he also had
resigned as a director of the Progress
Bank
Kartios & Burke have a member
from which several firms have been
expelled recently in connection with
District Attorney Banton's Investigate
tion of complaints of bucketing.
Propaxnnda Blamed.
Mr.. Ross. in his statement discussing
the failure, said it was due to ''in-
sidious propaganda, disseminated in the
various cities where kardos & Burke
maintained Offices"
There has been continuous with
drawal and transfer of accounts" he
said. with the large overhead ex-
pense It would have been impossible to
continue business without seriously at
fecting the rights Of creditors"
Commenting on the disparity between
figures on liabilities and assets given
in the bankruptcy petition and those
announced by the firm itself, Mr.. Ross
said the former were grossly exag,
gerated' in the case Of liabilities and
"grossiy underestimated'' in the case of
assets.
The attorney declared that he was
certain the assets would reach a mini
mum Of 100000 when funds in the
firms branches at Chicago. Pittsburgh.
Baltimore. Philadelphia and Boston had
been added to those availinble in the
home office.
Shortly before midnight directors Of
the Progress Bank responded to their
attorneys call for a meeting in an up
town hotel to act on the designations of
Burke and Kardos as president and di-
rector. respectively. Before the meet
ing Mr.. Ross declared there was no
doubt they would be accepted.
"The bank Is in no way involved IN
this failure" Mfr. Ross asserted. 1.-THE
embarrassed firm has no connection
whatsoever with the bank, other than
that Mr. Burke and Mr. Kardos owned
ten shares each of the banks stock to
qualify them as directors
The Progress Bank, established here
in 1913, is listed as having a capital
stock Of 1924, 200 and surplus and un-
divided profits of SIS, 100.