Norwich bulletin., 1922-02-24
Stream Of Failures
Of Brokerage Firms
An Investigation is to be Made
of Alleged Irregular Prac-
tices of Brokers-Four Fail
ures Yesterday.

New York, Feb. 23.-Financial storms
In speculative Wall street, which swept
the brokerage firm of Kardos and
Burke into bankruptcy last night, hit
four more houses today.
Involuntary petitions in bankruptcy
were filed in federal court against:
S. S. Ruskay and company liabilities
estimated at s2,50O,000 and assets at
s1,50O,000.
j. W. Ball and company. liabilities es-
timated at s15o,ooo and assets at s1o.-
900.
Rodney and Company, liabilities and
| assets not given.
The New York Curb Market an
| nounced the suspension of Rasmussen
& Company, for alleged failure to meet
| its engagements.
A steady stream Of failures for the
last month, with resultant heavy loss to
customers throughout the United States
| and Canada, recently led District At
torney Banton to start an investigation
| OF alleged irregular practices by brok-
| ers, the most common of which was al
| legged to be the bucketing of orders.
Of thirty odd firms that have gone in
| to bankruptcy since the first of the
year, twelve have been found by grand
juries to have operated in a manner to
/ ffe'i eLiII lliuICLlltAL VI SOIQe OIL lnelE
| members. Nineteen persons are under
| indictment, and several of them are re-
ported to have disappeared from the
city.
Unusual interest attached to the Kar-
dos & Burke failure because of the fact
that the junior member of the firm,
John Burke. was treasurer of the Unit
| ed States under former President Will
son. He resigned that post in 1921 to
inf htrci
year-old broker who started in Wall
street eight years ago as a $40 a week
messenger boy.
>kardos, son of a wealthy Chicagoan,
was reported out of the city today.
Burke said he understood his partner
had gone to suburban town for a few
days.
THE whole thing reminds me Of the
old adage." Burke said, that cobbler
should stick to his last. I am lawyer
by profession. l made a mistake go.
Ing into the brokerage business, con.
corning which 1 find I knew too little.
i want the situation cleared up, al
transactions of the firm opened wide Il
the public. 1 know such a process.
would absolve me personally, and
have not the slightest doubt but whai
1t would clear up insinuations agains
the firm"
Burke said his contract with Kardo
, had an iron clad provso that neithe
member OF the firm should engage il
trading on his own account nor engag
In any trading on the exchange withou
the others consent. Although he ad
nlitted he had not followed the affair
Of the firm closely, he declared his be
lief that Kardos had lived up to the let
ter of the contract. Burke said he ha
lost everything in the crash.
"As soon as this thing is cleared mp,
: he concluded, 'I shall start a new {
build my fortunes-but as a lawye
, this time" Burke is 81.
Complainants against the Ruska
firm presented claims of $1,000, wfic
g they declared the firm was unable t
= pay. Judge Hand appointed Mark Hy
n man receiver. The firm has branche
r in Cleveland, Philadelphia, Pittsburgh
Bridgeport, st. Louis, Boston and CHI
cago.
n James W. Bah and company was on
f of the best known firms Of betting con
: missioners in the financial district, har
n ding hundreds of large wagers on spol
events and elections. Arthur G. Da
ziel was named receiver under bond
!. $1,000
T. Petitioners against Rodney and con
!. pany presented claims Of s2,42o.
j Rasmussen and company fled an a!
signment for the benefit of creditor
late today. naming George A. McLougl
g lin as assignee.
Is In an attempt to stave off the in
'r pending disaster. Mr.. Burke, his alto
Is ney declared, had invested $4,000
the last two weeks and some Of n
friends added 100000 to the FIRMS r
le sources, but this had been dissipated !
" withdrawals.
30 Another brokerage firm, that Of Hi
" gins and Dias, was name din petite
IN bankruptcy filed by creditors wi
small claims. No estimate of the firm
q liabilities and assets appeared in the p
q ttion. Bernard ]. Higgins and Samu
- 4 H. Dias are It's members.