Evening star., 1922-10-22
'B[|NDPOO[ FIRMS
ASSETS MAY GROW
Receiver Expects to Recover
$50,00O Fees From D. C.
Manager.
Special Dispatch to The Star.

opeCiaI Olbpatcu TO ne star.
BALTIMORE, October 21.-Pros-
poets of recovering approximately
$4,000 to be added to the assets of
the Community Finance Company, de-
clared bankrupt in the United States
court Tuesday, is held out by Karl
Knapp, receiver for the defunct firm,
through contemplated action against
G. w. Arnold. former Washington
manager of the company. and who is
said to have received that amount as
commissions.
in Baltimore by Arnold. operating
similarly to the F. NJ. Young Com
pany, will be investigated immedi-
ceivers, Mr.. Steinmann said, and the
operators connection with the latter
company also will be probed fully.
With nine pools in the city already
collapsed and the spotlight of pub
licity turned against resumption OF
such brokerage transactions, Mr..
Steinmann characterized the forma-
ton of another pool by Arnold as
the most audacious proceeding inn
aginable." Little is known of the
extent Of the new pool and it is un-
certain whether operations have
gained any considerable proportions
| In Baltimore.
District Man Informef.
Disclosure of the incipient pool
operated by Arnold was contained in
a letter received yesterday by Mr.
Steinmann, being a copy of a com i
munication from the organizer to X.
B. Semly, 2117 NJ street northwest
Washington. From the letter 1t is
evident that the crash of the Conn
munity company was used as a means
to secure customers for the new pool.
Arnold states, in part:
Il told you had resigned from the
company Community before the re-
ceiver was aappointed, so that l could
go into business for myself. l am
operating on the same method as r.
NJ. Young of this city-that is. buy
and sell only listed New York Stock
Exchange securities. through a New
York Stock Exchange house, and
divide the profits each month.
BY becoming associated with me
you have chance to get back the
money you have with the Community
in a short time in the shape of profits
which my method of trading will
bring as sure as any yet devised. l
have about twenty of the people who
were in the Community with me now
and we are making very good profits
right now.
Let me hear from you
Dated at Refsterxtown.
The letter was sent from Reisters-
town road and Clark's lane and dated
September 10, 1922. That was about
two weeks after the collapse of the
Community and before the debacle of
the Young organization.
Had Mr.. Arnold foreseen events he
would not have advertised the SINH
larity of his and Young's methods,
perhaps" said Mr.. Steinmann. Even
as it is" he said, Arnold displayed
unequaled nerve in openly begin
ming a new pool with the others fall
ing all about him.
The statement that Arnold had re-
signed from the Community COM
pany before the letter was written
is secuted by Mr.. Steinmann. Ac-
cording to reports, he said, Arnold
was with the concern at the time Of
the crash. This. it appears, indicated
that funds were secured from Com
munity customers to be reinvested in
the new pool. Since the Community
company has been placed in receiver
ship. action is being considered
against Arnold to recover all the
funds secured by him during his con-
nection with the firm. This will be
added to the assets. Mr.. Steinmann
said.