The New York herald., 1922-02-26
Thos. III. Cowley & Co. Joins
Embarrassed Firms After
Court Hours.
II GO UNDER IN WEEK
Liabilities 100000; Assets
$500,00O, Ayers Partner
Of John Burke.
SAYS ALL WILL BE PAID
Envious Competitors Shook
House by Slander, Is the
Brokers' Defense.

Four more brokerage firms went
into bankruptcy yesterday, sending
the total for the week to twelve. The
kardos & Burke failure ranked as the
largest of the week, and according to
Louis Kardos, who appeared yester-
day for the first time since the firm
failed, the liabilities will run to $780,
900. kardos believes, however, the
assets will total 100000.
The firms that went into bankruptcy
Yesterday, with the estimated liabili-
ties and assets of each, were:
THOMAS NJ COwLEY G. CO., 115
Broadway; liabilities, 800, 900; assets,
$40 600.
REITzE & SULLIVAN, 10 BROAD
street; liabilities, $4,000; assets,
$4,000.
A. r. SMITH eco, AZ Broadway;
liabilities. $4,000; assets, $4,000.
HEATLEY, RoBLES & SMITH.
1S5 Broadway; liabilities, $4,000; as
sets, s5,OeJ.
Fail'~e of Thomas Ii. Cowley & Co.
one Et the largest of the week. be-
can.r known late last evening after
thy courts had closed. Judge Hand.
hcr ever, appointed Earl 3. Barnes re-
c.s1er fixing bond at $4,000. This
CG@lcern had a seat on the Consoli-
Gated Exchange and, as far as could
be learned, was the only one of the
four connected with an exchange
The creditors in the Cowiey petition
with the amounts claimed were w. f.
Laying. $22l: George Bejbom. $3.50, and
Henry Mccormack, $3.50. The Laying
claim is for printing the others for
services. Members of the firm are
Thomas II. Cowley and Paul f. Brady.
The petition contains this clause:
Your petitioners further show that
within four months next Immediately
preceding the filing of this petition and
while insolvent the said alleged bank
rupts committed acts of bankruptcy as
follows: They paid the following sums
OF money to the following creditors with
intent to prefer these creditors over
other creditors of the same class. to
wit: W. $. German. s. 800; c. A. Hubbs.
sicfH. and Sam Lacker 81 400
',aused by Agitation
This petition also says: THE failure
is due in some respect to the large
number of similar failures together
with the widespread agitation of the
press and rumors which have resulted
in heavy Withdrawals by clients
The first failure 10 be announced in
tho day was that of Rietze Il Sullivan.
The three petitionng creditors were Eva
4f. 600.
$50. and Belle Siegel. $54l. The firm. as
far as could be learned. was not a large
one. The assets are set at only $1,000
and the liabilities at $4,000.
There was complaint in the District
Attorneys office, ii was ascertained.
against Hcatlcy. Robles & Smith deal
ers in investment securities. The de-
tails OF the complaint, which was made
by John Hausle, were not made known.
The creditors signing the bankruptcy
petition were Ira Frank S400, Jacob
Frank S400. and the Correct Printing
Company $50.
Alban X. Smith was trading under the
name of A. r. Smith & Co, according
to the petition in that case. The petit
toners were Harry NJ. Moses, claiming
500 Marcus Dorfman, $425, and Harry
r. MACEDONIA, $3.50.
Burke Glad 10 Sec kardos.
II was the Kardos e. Burke failure,
however, that furnished the most in
tcrcstiug development of the day This
hrm had failed on Wednesday and the
whereabouts of Kardos had been gener-
ally unknown since. He appeared just
after noon at the office of David w.
Kahn, attorney for the receiver at 120
Broadway. He was accompanied by
Arthur j.. Ross, his attorney and attor-
ncy for the defunct firm.
John Burke former Treasurer of the
United States. who was Karlos's partner,
was in the room when the young man
aging director OF the firm. who is small
of stature and slight, appeared. The
two shook hands and Burke had tears
IN his eyes. He was evidently much
affected Then began conference
which seemed to please the receiver and
his attorney, for Mr.. Kahn said after
wards
Both these men have made a very
favorable impression. Kardos has turned
over all his property and has promised
TO cooperate with the receiver"
4 statement issued later read in part
MIR. Kardos expressed his willingness
TO turn over TO the receiver all OF his
personal property. including balances in
banks. life insurance policies, securities
and some automobiles at present In Ham
burg, Germany. which had been pur-
chased on the occasion of Mr.. Kardos's
trip to Europe last fall. Mr.. Kardos
also stated that he was anxious to CO.
operate with the receiver in the liqulda-
t'on OF the assets in order to obtain the
best results for the creditors. Mr.. Kar-
dos also asked permission to make a
personal statement on his own behalf to
Continued on Page Three.
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