Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-02-24
FINANCIAL GALE
WRECKS 5 MORE
BROKER HOUSES
Stream of 3O-Odd Fail
ures in Wall Street Be-
gan in Bucketing.
l9 Persons Now Indict-
ed; Burke to Begin All
Over as Lawyer.

New York. Feb. 23.-Financial
storms in speculative Wall Street,
which swept the brokerage firm of
kardos and Burke into bankruptcy
Wednesday night, hit four more houses
Thursday.
Involuntary petitions in bankruptcy
were filed in federal court against:
s. S. Ruskay and Company, liabili-
ties estimated at S2,500,0OO, and assets
at S1.5O0000.
]. W. Ball and Company, liabilities
estimated at $150,0OO and assets at
$4,000
Rodney and Company. liabilities and
assets not given.
The New York curb market an
nounced the suspension of Rasmussen
and Company for alleged failure to
meet its engagements.
Failures Bring "a indictments
A steady stream of failures for the
last month. with resultant heavy losses
to customers throu -hout the United
States and Canada recently led District
Attorney Banton to start an investlga-
ton of alleged irregular practces oy
brokers' the most common OF winch
was alleged to be the "bucketlng' OF
orders.
OF thirty odd firms that have gone
into bankruptcy since the first of the
year. u have been found by grend
iuries to have operated in manner
which brought Indictment Of some of
their members Nineteen persons are
under Indictment and several OF them
are reported to have disappeared from
the city.
Unusual interests attached to the
Kardos and Burke failures because the
junior member of the firm, John burke,
was treasurer of the United states
under former President Wilson. ne
resigned that post in 1927 to go INTO
business with Kardos. 2S-year-old
broker Who started in Wall Street eight
wears ago as a $40 a week messenger /
boy
kardos. son of wealthy Chlcagoan::
is reported out of the city. Burke sad
he understood his partner had gone 10
IL suburb for few days
Burke said his contract with kardos !
had an ironclad proviso that neifher (
of the firm should engage IN !
trading on his own account, nor en-
gage in any trading on the exchahge
the Others consent. Although
he admitted he had not followed the
affairs of the firm closely. he declared
b;c hoIief that Kardos has lived up to .
the letter of the contract. Burke sala
he had LOST everything in the crash.
Burke to Practice Law
Gas soon as this thing is cleared I
M he concluded, II shall start anew
% rebuild my fortunes-but as law
yer this time
Burke is 62.
Complainants against the Rnska firm
presented claims, Of S11 900 which they
declared the firm was unable to pay.
Judge Hand appointed Mark Hyman
.eceiyer. The firm has branches in
-Icveland, Philadelphia Pittsburgh,
st. Louis, Boston and Chi
ago.
James W. Ball and Company was
,ne of the best known firms of betting
in the financial district,
handling hundreds Of large wagers on
port events and election. Arthur @.
)alziel was named receiver. under
,ond Of $1,000.
Petitioners against Rodney and Com
,any presented claims Of S12,42O. Ras-
nussen and Company filed assignment
or the board of creditors, naming
george A. Mclaughlin as assignee.
Later. three creditors with claims
less than $500 filed pc
ition in bankruptcy against Rasmussen
nd Company. alleging the firms ac
ION III iiuhjiS tSSi Iliiitht Hdo az <'N' .
i bankruptcy. Liabilities and assets
,ere not mentioned in the petition.
Thefts Broke One Firm
In the proceedings against Rodney =.
nd Company, Judge Hand appointed
Iarold Remington receiver, under bond .
f $4,000.
Thefts by an employe Of the bank !,
upt firm Of f. W. Dier and Company, .
ne of the first brokerage companies .
, crash. contributed to that company =
ifficnlties. it was testified at a re
eivcrship hearing. :
Application for an order to include
| the bankruptcy proceedings Jay a. 4
reenwald. said to have withdrawn as n
partner in the firm Of Kardos and
urke last week. will be made Friday.
re receiver indicated. Greenwald was
lid to have withdrawn his interests
ithout the consent Of his partners c
Another brokerage firm, that of h
iggins and Dias was named in pc h
ton in bankruptcy filed by creditors Y
it'll small claims. b