The New York herald., 1922-09-14
J. c. RABINER &C.,,
CONSOLIDATED firm,
FAILS FOR $5OO,OO0
Stock Brokers in Bankrupt
cy and Losses May Run
Up to 100000.
BANTON PLANS ACTION
Customers Had Complained
of Difficulty in Getting
Their Money.
SUSPENDED BY EXCHANGE
Silkworth Thinks Involun-
tary Petition Was to Avoid
Disciplinary Action.

j. G. Rabiner & Co.. stock brokers,
failed yesterday for between $500, 900
and $1,000. .000-about two jumps ahead
of investigation oy the District At
torney-thereby adding another to the
long list of bankruptcies In the mem
bership of the Consolidated Stock Ex-
change.
The concern was under investiga-
ton by the bureau of auditing and
accounting Of the Consolidated. Ac-
cording to the announcement of w.
S. Silkwcrth. president of the ex-
change, while the bankruptcy petition
was involuntary It was arranged for
the purpose Of thwarting disciplinary
action by the exchange The members
of Rabiner & Co. had been summoned
to appear to-day before the ways and
means committee
Rabiner Co. had been In business
In New York for five years and had
been members Of the Consolidated Stock
Exchange for two years. The company
maintained elaborate offices at 25
Broadway, 1S45 Broadway and 245
West Forty-second street.
Prosecutor Has Complaints.
The number OF customers who will
suffer from the failure is not known, but
1t was learned that Rabiner had a mall
ing list OF about 5000 or 5000 names
Rsbiner & Co. were called to the at
tention of the District Attorney as early
as last spring. Benjamin +. Schroeder,
Assistant District Attorney. has before
4 him ready for investigati tion a number of
complaints, which. he said yesterday.
arc to receive his immediate attention.
Customers who became uneasy during
the epidemic of bankruptcies last spring
are alleged TO have had difficulty at
times in prevailing upon Rabiner & Co.
t. execute orders and deliver money
One instance has come to light where
Rabiner is alleged to have withheld ex-
ecution of a selling order for three or
four days The order was not executed
until the customer called at % Broad
way and announced the intention of re-
naming there until the money was de-
livered. Upon that occasion It was ex-
planned that there had been no quota
tions for the stock upon which the sale
was ordered. and the firms representa-
tive commented upon the remarkable
coincidence that a quotation should have
appeared upon the board while this Gus
toner was waiting in Rabiners office
for her money.
That the District Attorney possibly
will have the long court fight usual In
such cases to obtain possession OF tho
Rablner books was indicated imme-
diately after Judge Martin T. Manton
appointed former Judge William d.
Cunningham. 65 Broadway. as receiver.
Mr. Cunningham announced that he had
taken custody Of the Rabiner books
under the usual reservations" pre-
sumably that they be withheld from the
District Attorney.
Surprises All Around.
Mr. Cunningham said that he talked
10 Jules G. Rah''cr and that Mr. Rab-
iner protested l, h considerable emotion
that he was nol aware that his business
was drifting upon the rocks until the
crash came. IL would appear from the
list OF bankruptcy petitioners that the
customers were not in on the secret
either.
The petitioning creditors are the
Economic Press with a claim of s111;
the Royal Desk Company. s42. and Her
bert Fohan. $3.50 for professional SER
vices They are represented by the law
firm Of Rose e. Kaufman. 255 Broadway.
Mr.. Ross stated that he had no, idea
vet what course his clients would be adj
vised to take. Present indications. ne
said. were that the liabilities would run
somewhere between 100000 and $780,
600. From another source came an esti-
mate OF possibly s1,000,oo0. Mr. Ross
said the firms assets amount to about
$4,000.
The Rabiner bankruptcy was followed
by suspension from the Consolidated.
The following statement was issued by
that exchange:
president Silkworth said to-day that
the firm had been under investigation
by the exchanges bureau Of auditing
and accounting for the last two weeks
and that the members had been ordered
10 appear before the ways and means
committee Thursday afternoon. The
Bankruptcy proceedings, Mr.. Sikworth
further stated. were evidently brought
about 10 forestall disciplinary measures
by the exchange"