The New York herald., 1922-03-21
Randolph Rose, ST., Put Out Of
Directorate and Office of
American Exchange.
SAID TO OWE S258,OO0
Bucketing Complaints InvoIv-
ing Him to Be Put Up to
Grand Jury To-day.

The two brokerage houses OF Ran
dolph Rose, Sr.. vice-president and di-
rector of the American Cotton Ex-
change, were forced into involuntary
bankruptcy yesterday afternoon while
complaints Of bucketing cotton orders
were being prepared for filing with
the Grand Jury to-day.
The firms are Rose & Co, stock and
bond brokers. Of 50 Broad street, and
Rose & Son. cotton brokers. of "a
Stone street, in which Randolph Rose,
Jr., is a partner with his father. The
latter firm is a member of the Ameri-
can Cotton Exchange. whose affairs,
along with those Of the elder Rose and
half a dozen other members, will go
before the Grand Jury.
Immediately after the appointment
OF receiver for the two firms A. w
Graham, president of the American
Cotton Exchange, announced that
Randolph Rose. ST. had resigned as
vice-president and a director of the
exchange and that the board Of direc-
tors had accepted his resignation. Mr..
Graham said the failure automatically
works as a suspension of membership
in the exchange"
Claims "More Than $1,000"
Edward B. Wittlesey was the petit
tioniae creoiuon- agains. Rose & Son,
with claim of more thar $500" lie
estimated the firms liabilities at $50. 600
and the assets at si25Ooo. The Kimmel
Press. Inc. also with a claim OF more
than $780," was the petitioning creditor
against Rose e. Co.. estimating its liza
bilities at sl0S. 900, with assets unde-
termined. Thus the total estimated
liabilities OF the two Rose concerns
are $25s,Oo with assets at a minimum
of s125,000.
Rose & Co. consists OF Randolph
Rose, Sr. and Celia Manassee. long in
the confidence of Rose and interested
with him in occasional other business
ventures. r. Bright Wilson was named
receiver in both cases. being under
so 900 bond for Rose & Co. and $4,000
for Rose & Son. Saul 5. Myers is at
torney for both petitioners and Hays
& Wadhams represent the Roses.
Hays g. Wadhams made the following
statement:
THE failures of Rose & Go. and Rose
& Son. against whom involuntary petit
tons in bankruptcy were filed, were
precipitated by the tremendous fight
which has been waged against these
firms and against the American Cotton
Exchange, of which Rose & Son are
members
Both firms fought to the last 70 keep
afloat. but the odds against them were
too great. During the last two weeks
they have paid out hundreds Of thou
sands Of dollars to meet the run on
them by customers. II IS impossible
without an audit Of the books 20 APP
proximate the assets and liabilities OF
either firm, but II is expected that the
assets will be sufficiently large 10 paw
the creditors a large part Of their
claims"
exchange Not Affected"
Mr. Graham announced that the fall
ure did not affect the exchange finan-
cially i'm any manner. Rose. Sr. was
an officer OF the exchange. but. it was
stated. he owed tho exchange no
money, nor did the exchange owe him
The exchange and its memoers par
ticularly the two Randolph Roses, have
been the recipients recently or much
Dnfavorable publicity by reason OF the
John Doe inquiry into the exchange
affairs which was conducted last week
before Chief Magistrate William Nc
Adoo. The exchange has been unable
10 gain opportunity to attack the testi-
mony there given. and II is known that
the result mas been a slackening IN the
business of the exchange and its mem-
bers. IL could not be learned. however.
whether the failure of the Roses Is
directly attributable TO recent circum-
stances. although the condition of their
affairs was aggravated thereby.
The great majority OF the Rose
clients. particularly in cotton. reside In
the South, as do most of the customers
Continued on Page Four.