New-York tribune., 1922-02-24
Millions in Crash Of Bali
4 Co., Rodney & Co.,
Ruskay & Co., Higgins
& Dias and Rasmussen
kardos K Burke
Affairs Involved
b Ext. 5. Treasurer Saws
He Put Up Every Dollar
He Had in Effort to
Avert Sudden Disaster

Five moro brokerage failures were
announced here yesterday.
In addition to Kardos & Burke,
against whom rcceivcrship proceed =
ings were brought late Wednesday
night at the home of Judge Learned
Hand, Of the United States District
Court, the failure Of the following
vas srnoupceG:
James V. Ball & Co., G7 Exchange
Place.
S. S. Ruskay & Co.. AZ Broadway.
Rasmussen & Co, Ill Broadway.
Rodney & Co., 55 Broadway.
Higgins 6 Dias. 55 Broadway.
None Of these firms is u member
Of the Stock Exchange. District
Attorney Banton said yesterday that
he had a complaint against only one
Of them-S. S. Ruskay & Coin his
bucket shop Investigation. When
detectives went to the offices to seize
the books they found the receiver in
charge.
Other Houses in Peril
It was the opinion in Wall Street
tat the neYy failures were the begin
mug Of what might prove TO be a gen
ersl collapse Of brokerage houses not
in command of suAicicn. liquid assets
10 withstand the ruah Of with drewais
resulting from public alarm over the
lucketshop disclosures.
Robert T. Stephenson, receiver for
ks-dos & Burke, said last night the
sss6ts, which the firm had claimed
night reach 100000, probably would
Il. c0rs derably below that figure. He
Epained that accurate figures could
aos be issued until the books had been
tadlted but gave il as his belief that
Tie liabilities were at least $500, ,000.
ne papers III the banhruptcy proceed
lgs ct forth that the assets are about
$4,000 and the liabilities 81 500, 900.
Ihe petitioning creditors were Law
renee K. Beatty and Clarence S. Carr,
with aggregate claims OF 1888. As the
result CT the rcceivcrshi p the Arm was
slsperded from tho Consolidated Stool
LSchangc at the opening of business.
Third Partner May BE Included
Ionn Burke, partner in the failed firm.
and q former Treasurer Of the United
States. attended c conference IN the
afternoon. al which were present the
receiver. David ". Kahn, attorney for
the petitionng creditors, and Arthur
L. Ross, attorney for the bankrupts.
Louis Kardos. active head Of the firm,
slthough expected, did not appear. Il
TaS learned after the meeting that Mr..
Stephenson viii make application in the
FEDERAL Court this morning to jnclude
Al alleged third partner, described az
Jay 4. GreenNald, OF 23G West Seven
t.eth Street.
According 10 Nr. Ross. Grecnwald had
been member OF the firm since Novcnl-
Der and only last week announced his
withdrawal, which. he said, would be
n contested OF the ground that the con
3aAc OF the other two partners had not
oeen given. Mr.. Kahn declared that
every effort would be made to force
0geenwald to assume his one-tnird re-
-ponsibi!ity il meeting tho firm obll-
cations.
NF. Ross SAID he had not seen Kar-
dos since last Tuesday, when nc ap-
Ieared TO be greatly broken up and
=. -Su nc " a. gong IWsy lO- q fcSc
VI Ross asserted the bankrupt firm
1ad $4,000 deposits in New York banks
SAd 100000 in other cities, but how
Mucn Of this was offset by current
charges he vas unable TO say.
Inc firms attorney attached mucn
Importance TO returns it might receive
sTom damage suits against various
s,ocA exchsnge firms, for which. he
sald, there we're good grounds, but
which now must be held in allegiance
bending appointment OF trustee. A
receiver, nc pointed out, was only a
Custodian OF funds and rot authorized
bring suits.
In behalf or Mr. Burke, Mr.. Ross sac
ne had turned over his last resources
70 the receiver, including bank deposits
u $500 and twenty-year endowment
lie Insurance policy made out to Mrs.
bnEke and fully paid up.
- Ar. Burke also invested 100000 OF
lis own money IL the firm N the last
fCortiru.d al sase fpur)