The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-06-06
MACMASTERS B CO.
100000 WRECK
Failure Of Consolidated House
Is Much Greater Than
Thought at First.
ONLY $4,000 is IN SIGHT
Women, Some of Them Poor.
Hear Discouraging Facts
About Brokerage.
ONLY $4,000 is IN SIGHT

The failure of r. H. MacMasters &
Co. last February proved yesterday to
be one of the most disastrous in the
financial district. The liabilities will
exceed $1,000.000 and the assets will
approximate $4,000. After fees and
the expenses Of TIE bankruptcy are
paid the creditors will not get more
than ] per cent.
r. H. MacMasters & Co. of 80 Broad
street were members of the Consoli-
dated Stock Exchange, being admitted
to membership in that organization
June IA, 1919, about nineteen months
prior to the failure.
The extent to which the public had
been mulcted by this firm was made
known in the Office of Peter B. Olney,
referee in bankruptcy, by David w.
Kahn, attorney for the receiver and
by the receiver. Robert p Stephenson,
at a meeting of the creditors. About
fifty persons were present. including
half dozen women. some apparently
in poor circumstances.
every Transaction washed
BY general consent Mr. Stephenson
was elected trustee for the creditors
After the formal preliminaries had been
disposed of Mr.. Kahn said:
There is no doubt that this firm did
tremendous business in many parts OF
he country and that large number OF
people have been affected by the bank
'utcy. An examination of the books
of the concern makes 1t perfectly clear
that they washed practically every
transaction through a house account
Whenever we have attempted to ques-
ton the members of the firm as TO this
house account they have taken refuge
in their constitutional right and have
refused to answer.
There has arisen a serious question
as to whether John +. MacMasters. the
stepfather of r. III. MacMasters was an
owner or partner in the firm. We
learned that the elder MacMasters drew
salary OF $3.50 a week and that he IN
large measure directed the activities of
the firm. We have questioned him and
he refused to answer a number of the
most important questions on the ground
that to answer might tend to incrimi-
nate or degrade him.
I'VE therefore applied to the court to
have him included and Judge Mack has
signed an order which will bring the
matter before the referee for decision
as to whether John +. MacMasters shall
be included.
Roy MacMasters Out of Work.
Meanwhile we have tied up by court
order about $4,000 realized from the
an In nj Aafs % III.
ters and some other assets that he had
AS far as Roy MacMasters is concerned
we are convinced that he has no assets
that are not already in our possess
sion. He is out of a job. looking for
work. Cochran, who appeared as a
partner I'm the firm, was in reality a
bookkeeper and received very small
percentage on the business"
One OF the creditors then asked Mr..
Kahn what the liabilities were and he
replied:
The liabilities certainly will not be less
than 100000
Then Mr.. Kahn called on MIR. Stephen
son to state what the assets might be-
The receiver said that there had been
about $4,000 of securities I'm the firms
strong box, when the receiver took over
the office. Other assets might run be-
tween $4,000 and 900 The total would
be in the neighborhood of $4,000. he
believed. 1t might be possible to add
$751; 600 to this IL John III. MacNasters
were included as a member of the firm
by the court.
Worse Than DER Failure.
Early estimates put the MacMasters
liabilities at certainly not more than
100000. Apparently the customers of
this house will fare worse than the Gus
toners OF T.. ID. DER a. Co. The Dicr
liabilities have been estimated as high
as 100000. but they may be brought
down to the neighborhood Of $500. 900
Settlements may make possible the pay
ment Of about 25 per cent to the DER
creditors.
The general creditors of MacMasters
may not get anything. Claimants who
can Identify stock they have put UP as
collateral or otherwise have right to
that stock. BY every withdrawal from
the assets OF that sort the total will be
reduced. A list of securities found Is
being kept at Mr.. Kahns office. 100
Broadway. for examination by creditors.
Furthe- action In this case was put
over until June 10 at Q o'clock.