The New York herald., 1922-08-10
N. Y. EXCHANGE BARS.
4 BALTIMORE FIRMS.
Stock Tickers Disconnected as
Required Standards Were
Not Observed
NO SPECIFIC CHARGES
All Suspend Business and Re-
ccivers Are Named for Two
Companies.
NO SPECIFIC CHARGES

Special Dispatch - TIE NEW YORK HERArp.
BALTIMORE, Aug. 9.--Four Baltimore
broker firms were forced to suspend
business to-day when their stock ticlxeys
were disconnected by orders from the
New York Stock Exchange One OF the
firms. Smith, Lockhart & Co. SoHth
Calvert street. Immediately filed a PEE
tition in bankruptcy. Clifton s. Brown
was named receiver.
Another Arm, Kaderiy & Finnan. St
Pahi and Fayette streets. executed
deed OF trust for the benefit of cred
itors in the Superior Court Harry A.
Orrick, former president OF the Balti-
more Stock Exchange. was appointed
receiver.
The other firms suspending business
were Mueller & Stout. Keysy,r Building.
and W. II. Stout & CO., ST. Paul
street
Smith. Lockhart & co. kept its doors
open until the petition in bankruptcy
was hied, when sign reading CLOSED"
was hung out.
Ono Office stays Open.
A notice from the firm Of Kaderiy &
Finnan that II had been forced to sus-
pend business temporarily because of
removal of its ticker was read on the
hoor or the Baltimore Stock Exchange.
The office OF the Arm continued open
and all employees were at their posts
explaining the situation TO customers.
After the removal of their ticker
Mueller Stout closed their. Office and
pasted typeWritten sign on the door
1t read: "Ofte closed to-day. Ticker
service suspended to-day" The office OF
w. II. Stout, & Co continued open, but
no member of the Arm was there.
The firms got the opening quotations
before the service was suspended. After
the tfckers were disconnected they
made an unsuccessful effort for short
time TO continue business by getting
their quotations over private wires
which axe used to transfer buying and
selling orders to New York This was
found impossible and the firms discon.
tinued all business In securities listed
on the New York Stock Exchange
Trading was continued in securities
listed on the Baltimore Stock Exchange
but this. too, was later discontinued
Two Firms Explain.
A statement by Smith, Lockhart &
Co. read:
"rhe New York Stock Exchange sum-
marlly refused ticker service to our firm
of our books and records. while they
found no evidence of Irregularities in
any OF our transactions from the report
of their auditors. they did not feel justi-
fed In continuing the ticker service. II
was thereupon decided 10 consent to the
appointment of a receiver in bankruptcy.
for which an application was made by
three creditors.
This action was taken in order TO
protect all of our customers and in order
TO prevent any preferences to any one"
Counsel for Kaderly and Finnan de-
clared there would be no loss by reason
OF the suspension. They Issued state
ment, in which they said
Due TO a recent ruling OF the New
York Stock Exchange with reference to
the partial payment business. brokerage
Offices conducting that business are de-
MED the privilege OF having New York
Stock Exchange ticker service. This rul-
ing OF the Exchange. which has been
enforced with practically no notice. has
made 1t impossible for houses trading in
the partial payment business to con-
time their operations. at least for
period sufficient to enable them to elimi-
nate this branch of their activities"
w. II. Stout OF Stout & Co. said he
was sure the firms ticker would be re.
stored. as it had made only one trans
action in violation of the rules
No Specific Charge.
The business being conducted by the
fom Baltimore firms from whose Offices