New-York tribune., 1922-02-24
Five Brokers
Added to List.
OF Failures
Continued from page cne)

ana thelr demands tOr cash balanceS,
due TO the effect of the District At
torncy's campaign against bucket :
shops, made this amount insufficient
and the relief fund fell through, &C
cording TO MIR. Ross.
For Mr. Burke Mr.. Ross reiterated
the good recommendation Ksrdos sub
nitted to Mr.. Burke when the partner
ship was first arranged. Two large
trust companies in New York, together
with two trust companies in Chicago,
he said. vouched for the young Hun
garian with g hcsrtiness that COM
mended Mr.. Burkes confidence.
John Burke was only honorary pres
ident of the Progress National Bank.
Twenty eight, Street and Seventh
Avenue, according to A. H. Walsh, vice
president.
"Mr. Burke had absolutely. nothing
to do with the operation of the bank;
he was simply an honorary president"
Mr.. Walsh asserted. He said kardos
was ten-share holder in the bank and
one of the directors. The directors
met later in the day TO accept MIR.
Burke's resignation. They elected Mr..
Walsh in his place.
Mr.. Kahn, who also Is attorney for
the petitioning creditors, estimated
that there were more than 1000 credi
tors. Among those who called at the
firms Offices yesterday at SO Broad
way were many small wage earners
Isadoro Ben Ezra, of 1878 Fifth Ave
nue.. who recently opened restaurant
at 81 Hudson Street, said he had de-
posted 81 900 with the firm and that
this had been reduced to $500 by trad
ing and still stands to his credit on
the books
The father of young KsYdos is said
TO be now travelling in Europe and has
been in charge Of the firms branch
Office at Hamburg, Germany. He was
head of the firm until about a year
ago. it was said, when he turned the
management over TO his son.
Proceedings Cause Surprise
". s. Silkworth, president of the
Consolidated Stock Exchange. said
that while he had known that Kardos
& Burke had been in distress, the re-
ownership proceedings came as sur
prise. He expressed The belief that
when ths books had been thoroughly
examined the firm would be able
10 weather the crisis. He said the
firm had no floor member trading on
the exchange and had done its bust
ness through other brokers. Mr.. silk
worth announced the suspension Of the
The statement was made that the
firm traded on the Stock Exchange
through member houses and that the
latter had various open accounts with
it.
The house of Ksrdos & Burke de-
vised several means of impressing upon
their customers and "prospects' the
fact that the Burke in the firm was
the same John Burke whose signature
as Treasurer of the United States had
appeared on all paper money issued
until March 4 last.
tac-similes of the signatures of the
treasurers Of the United States from
1889 to 1921 were reproduced on one
uted among their clientele. At the bot
tom was the signature of Mr.. Burke,
and directly beneath it was printed
Compliments of Kardos & Burke
The front of that folder set forth
"The Kardos & Burke Review, contain
ing an editorial on financial conditions
by John Burke again fac-simile of
his signature !, former Treasurer of the
United States this was in large type !,
will enable you to Judge properly the
significance of current events in the
economic world in their relation to the
investment markets. Mr.. Burke's ar
Ncles are authoritative.
Business Prospects Barred
Developments at home and abroad
arc shaping the business future for
decades to come. and the proper inter
pretatlon of these momentous events is
essential. In the confusion of day to-
day happenings the actual trend of af-
fairs is difficult to determine, and it
becomes necessary to take detached,
long range view.
"Busincss and the markets periodi-
cally 60 through cycles of expansion,
crisis, liquidation. depression and re.
adjustment. Liquidation usually af-
fects first those commodities held for
speculative account; next, raw ma.
terials, followed in rotation bv whole
sale ard retail stocks and finally wages
In retrospect, the progress Of the cycle
IS clearly seen, but at any one point
the individual observer is often mis-
taken IN his efforts to measure the
force and probable duration Of the
movement. Mr.. Burke's training and
tastes peculiarly equip him as a Judge
of these conditions.'
"A cohbler should stick to his last.
am lawyer by profession. made a
mistake going into the brokerage bust
ness; concerning which ! find | knew
TOO little.
y want the situation cleared up. all
transactions of the firm opened vide
to the public know that such n~oc-
ess would absolve nc personally from
all blame, and have not the slightest
reason to doubt that it would clear IN
'hs,nuatlons made against the firm,
Mf. burke was asked about his mart
rer, l.. NJ. kardos
Confidence in kardos
When | place my confidence IN
man 1t is absolute. There is no half
way business about it, Mr.. kardos had
my Iuil confidence. | have not seen
nm since Tuesday night My brother
has n, trled TO get in touch with him. At
the Breton Hall Hotel he was fold
mat Mr kardos had gone away for a
rest Lakeland. N. j., was the namo Of
he place, think The ATTORNEYS for
me RECEIVERS are trying to get in touch
with him, understand.
II met Mr.. kardos in Washington in
l9Zo through my brother, Thomas G.
burke At the time I was looking
around Tor business opportunitv
knowing that my term of Office would
expire on March 4, 1921. He interested
me III the brokerage business. showed
me statement as to his business. and
gave me letters of reference that vera
from the most reputa BILE persons. These
letters were unusually good, and I was
glad Of a chance to associate with NJ
hardos on the strength of them
The contract we signed was ,ro,
Cf10 xl s..