The New York herald., 1922-03-08
WOMAN HAS BROKER
Held, SEEKS$10,OO0
Miss Harrison Accuses J.
w. Dorm of Retaining
Her Securities.
8 STOCK DEALERS FAIL
KOry & Co. Man Put Under
$500 Bail on Larceny
d Charge.
CLARKsON AIMS TO PAY
Two Firms Go Into Bank
ruptcy Voluntarily, Credi-
tors Suing Third.
CLARKsON AIMS TO PAY

Joseph w. Dorm, member of the
brokerage of J.. Z. Dorm & Co., of 2
Rector street, was arrested at his Of
flee yesterday on the complaint of
Miss Emily G. Harrison OF East
Orange, N. j., who has started suit in
the Supreme Court alleging that Sc
curities worth $4,000 were obtained
from her by fraud and that Dorm dis
posed of them without her knowledge.
Dorm was taken to Ludlow street Jail,
hut after an hour he put up $4,000
cash bail and was released.
Three more brokerage failures were
reported in the day. An involuntary
petition in bankruptcy was filed in the
United States District Court against
Charles II. Clarkson & Co.. Sc Broad
way, by three creditors. The liabilities
of the firm were estimated at s145,000,
and the assets at $4,000.
Voluntary petitions were filed by
Maxwell. Hill & Reyher, 81 Wall street
and J. p. Gilligan & Co., AZ Broadway
who asked to be declared bankrupt
Julius Mendelsohn, 400 Riverside
Drive, formerly conected with Kory &
Co., brokers. AZ Broadway, pleaded not
guilty to an indictment charging grand
larceny and was held in $500 bail.
The indictments against Mendelsohn and
the firm allege customers funds were
diverted to uses other than those for
which they were provided. Mendelsohn
furnished bail.
Left Stock ms Collateral.
In her suit against Dorm and his firm
Miss Harrison alleged that between last
June and December she left with the
firm stocks and bonds worth $4,000.
which were to be used as collateral in
obtaining an allotment of stock for her
in return for S25 profit snaring certi-
ficates in the Mid-Continent Producing
and Refining Corporation of Cleveland.
She bought the certificates originally
through Dorns firm, she declared, and
was to receive back stock of par value
OF $50 share. which, she was assured.
could be sold overnight for SIS. Her
complaint stated that she did not re-
ceive the stock and on asking Dorm for
her collateral was informed that he had
forwarded II 10 Cleveland. She OBJ
tained an order for his arrest after de-
manding her collateral several times and
not getting IL.
Clarkson & Co. which was added TO
the long list of involuntary bankrupt
cies, is composed of Charles II. Clark
son and Vernon B. Ingram. The petit
tioning creditors and their claims are
Joseph Greenfield. trading as the Semi
mole Printing Company. $3.50; ]. Ber-
nard Brown. s325. and Eugene Auer,
s121. Judge John C. Knox appointed
A. Bruce Bielaski receiver, with a bond
OF $4,000. Saul s. Myers, 60 Wall
street, is attorney for the petitioners.
Tho petition alleged that within the
last four months and while still solvent
the firm made payments to certain cred
'tors with intent to prefer their claims.
Twelve such creditors are named.
say. CIarlxson VIII Pay.
Leo Bondy. 81 Cedar street. attorney
for Clarkson & Co. said his client was
corporation with a capitalization of
81 10000 until taken over by the pres
cnt partnership. Mr. Ingram was only
n nominal" partner. he said.
Mr. Bondy issued statement that
Mr.. C1arlxson hoped to pay his creditors
I'm full The firm was forced to the
wall by run which made II impos-
sible to realzez on quick assets he
stated. In addition to the original
500. 900 capital Mr.. Clarkson had sunk
$4,000 more in the business. said Mr..
Bondy.
Maxwell. Hill & Reyher gave their
liabilities as sf0.s3f and their assets
as $1,000. Most OF the indebtedness
is to customers. of whom one is Lillian
Russell. 10 Monroe street, New Brigh-
ton. s. I. The membersr are Joseph f.
Maxwell. Charles r. Hill and Fred A.
Ceyher.
James p. Gilligan. trading rs J. p.
Giiligan & Co, set his liabilities at
s14.257 and his assets at s3.3S2.
Judge Knox appointed Charles Gass
receiver under IS, 900 bond for Emanuel
varcoe & Co.. brokers. 52 Broadway
against which bankruptcy petition was
filed on Monday.