New-York tribune., 1922-02-25
President Of Stock Exchange
Says Ticker Service Is
Withheld From Those
Who Misuse Quotations
kardosAvoidsConf
Effort Made TO Get Funds
From Father Of Young Bro
ker. Said To Be Wealthy


aad been the greatest factor in the
breaking up of bucket shops and pre-
venting the misuse OF quotations.
He spoke IN reply to statements
that "thc numerous so-called broker
age house. shat have recently failed
we're enabled to do business because the
STOCK Exchange furnished them with
ticker service"
The terms Of tire contract under
which ticker service is furnished" 50 ID
M Cromwell, provide that quotations
hall not be used for any improper pur-
nose and shall not be communicated
o anyone that viii so use them; and,
Furthermore. the rules of the Stock Ex-
change provide that any of its members
who DO business for bucket shop or
or house making practice of tax
ng The side Of the market opposite to
their customers shall be dealt with as
guilty Of conduct detrimental TO the
interest a.d welfare of the exchange
Mr.. Cromwell stressed the fact that
none OF the five firms the failure OF
which became known Thursday was a
member of the big board. He pointed
out that there have been only two
failures of Stock Exchange houses
since November %. 1921 One, he said.
was Il house Of small Importance, while
me other was the failure of (. W.
Wagner & Co.
Weeded Out by Exchange
"'The exchange" he explained Gin
sisted upon an ass gnment by Wagner
& Co. after discovering that it could
sot continue in business without jeo
pardizing the interests of its custom
ers. The failure was most regrettable,
=. : -
minimize its Importance
at has been stated in the press that
the numerous so-called brokerage
houses that have recently failed were
nabled TO do business because the
stock Exchange furnished them with
ecker service. The fact is that of all
he non-member houses that have
Jailed since November % five made
spnlication for New York Stock Ex-
change ticker service and had had
-heir applications refused; thirteen
had at one time received ticker serv-
lce, which had been discontinued by
thc New York Stock Exchange: only
four Of the houses that have recently
allied were at the time of the failure
receiving New York Stock Exchange
,icker service.
THE application of these four houses
cor quotations had originally been ap-
proved after Investigation and upon
evidence which appeared to establish
that their business would be in all re-
poets properly conducted The ex~
change at the time Of their failure.
mad not received sufficient evidence to
Justify the remova. of their tickers"
In yesterdays conferences over the
affairs Of Kardos ( Burke, Of 80 Broad
way, Louis Montgomery Kardos ir.,
m.Daplur mariner ,XaS .cai,
nus by his absence according to David
y. Kahn. attorney for the receiver,
Robert ?. Stephenson Arthur /. Ross.
attorney for the firm. said, however.
hat young kardos would appear either
io-cay or tomorrow nendirE word Of
The arrival Of Philip r DAVIS, Chicago
attorney for the firm, and would meet
inc receiver at the office of Mr.. Ross.
,56 Broadway.
Seek Aid Of kardoS Sr
Dir. Ross said he had wired Mr.. Davis
TO come to New York to attend con
terence, especially in view Of the re-
port that Mr.. Davis had cablcd Kardos
sr TO come 10 the roscuo Of tho I'M
.oivent firm. The father of young Kar-
dos. rcputed to be wealthy. is now
'faveilng IN turoVe and had been in
charge Of the firms office in Hamburg
Mr. Ross contradicted published re
ports in winch Jay A. Greenwald was
quoted as denying any connection with
ne firm. otter than as manager of the
baitlmore office. He asserted q con.
rec OF partnership existed signed by
'ohn burko young kardos and Green.
Nala leSt tan. Such partnership was
announced to the 25O EMPLOYEES Of +he
concern on October 80, 1921. at dane
on the eleventh floor of the huildino
occup ed hy the firm. accordinc 70 H.
old {. Bame. controller.
Norman Baer, an attorney at aof
broadway, Is understood 10 have hos,
sets'ned by Greenvald to represent hi,
interests. He said he expected to issu,
statement on behalf Of his Glen
Rece'ver Stephenson made nublc
Sohhaeht.al memorandum, which he sal,
ne hao found among the firms papeYn
"hich purportod to show that on Sep
1embef 30 last there was surnln,
on hand Of more than ST soc. 900. II,
s'atement was sworn to and signed n,
'~o auditors. the cashier. CONTROLS,
ana Benjamin Nurtzel, another en-.
pioyee, as notary.
Imp ployees said that the run on the
m which caused the failure had ey.
ended over the last month. More than
-pV employees of the ma n Office at 90
"roaaway carried $1,000 life insurance
po'cleS under group insurance plan
Nhti 'hree weeks ago. when the
pollc1es lapse due TO d misunderstand
AE with The insurance agent.
Suggestion OF REORGANIZATION nlan
20 secure creditors was broached bv
ne bankrupt firm of s. S. Ruskav &
%. Of ~ Broadway. through Percjval
= Jackson, attorney, of 3O2 Eroadvav
Nuli details Of the plan VIII he pre-
sented. Ii was said, upon a final audit
of the FIRMS books by Mark Hymau.
ne receiver. and his accountants.
In urging the necessity Of co-opera-
ION ON the part of clients The firm at
triouted ITS failure TO ''whirlwind of
oneasiness,' which, unless something
we're done 10 restore public confidence.
1t was said, threatens to drag many
more firms down. Mr.. Jackson said
hat the proposed plan Of reorganiza-
non would secure to every creditor a
substantial dividend. He said il was
still too early to definitely state the
lrm's assets and liabilities.
The firm. according to MIR. Jackson.
pad out approximately 100000 in
tho last six weeks in the form o.
withdrawals by customers On the
morning OF the rsceivership, he said
there was over S15O,000 cash in banks
Judge Learned Hand appointed
Henry B. Singer yesterday temporary
receiver for the failed brokerage firm
Of Higgins & Dias, with a bond OF
$4,000. The petition II bankruptcy
indicated that the firms liabilities arc
100000, with assets OF about S65 900.
A schedule in bankruptcy was filed
yesterday aFainst the firm Of Milton