New-York tribune., 1922-03-08

lapsed and another indicted broker sur
rendered and one was arrested.
Charles IL. Clarkson &, Co. OF &C
United States District Court on an in
voluntary petition of bankruptcy. The
firms liabilities were estimated to be
$l45000 and its assets $4,000.
Papers filed with the court alleged
that within the last four months and
while still insolvent the house pre-
ferred certain creditors. The peti-
tioning creditors and their claims were
the Seminole Printing Company, $3.50;
J. Bernard Brown, 1926 and Eugene
Auer, $121 Federal Judge Knox ap-
pointed A. Bruce BielasM receiver un-
der bond of $4,000.
Leo Bondy, Of 27 Cedar Street, at
torney for Charles II. Clarkson &. Co..
said the firm had o capitalization of
100000 until it was taken over by
the present partnership. He said Ver-
non B. Ingram was only a nominal
partner In behalf Of Mr.. Carkson
Mr.. Bondy issued y statement to the
effect that Mr.. Clarkson hoped 10 pay
in full, and that the firm had been
forced TO the wall ~ run OF credit
ors which made it impossible for it to
realize on quick assets.
julius Mendelsohn, of 800 Riverside
Drive, a broker, formerly associated
with the bankrupt firm Of Kory &; Co.,
was arraigned before Judge Thomas
Grain in General Session Sessions,
pleaded not guilty and was released
in 81. 800 bail. Together with other
members of the firm he was indicted
last week on charge Of grand larceny
in the first degree III connection with
q stock transaction.
Broker-Attorney Arrested
Joseph E. Dorm, OF the brokerage
firm Of J. L. Dorm & Co, Of . Rector
Street, and also q lawyer, was arrested
by Deputy Sheriff Murphy in al action
brought against the firm by Miss eliza
beth G. Harrison, OF East Orange, N. j..
who is suing to recover $4,000 for Sc
curities which she alleges the defend
ants obtained from her as collateral
ard then sold. Miss Harrison alleges
the sale WAS without her authority and
fraudulently deprived her of her secur-
tiles. Dorm was released in $1,000 bail.
Miss Harrison was the owner Of SO
profit-sharing certificates OF the Mid
Continent Producing 4 Refining Com
pany, Of Cleveland In December last
she was advised that as owner of these
certificates she was entitled to an al
lotment of stock and that the Dorm
concern was the agent for this issue
OF stock
One Simpson, of J. E. Dorm & Co.,
called on Miss Harrison and told her
the shares would be sold on the curb,
that she was entitled to 500 under
her allotment and that these shares,
which she could buy for S5 apiece
would have ready market at $3.50
each. Miss Harrison subscribed for
Mid Continent stock. Simpson sug-
gested that she deposit collateral Miss
Harrison says she put up three bonds
OF the Island Oil and Trans sportation
Company, valued at $1,000 each. Be
fore he left, according TO Miss Harri~
SON, Simpson had her sign pink slip
on which was printed "Sell for my ac-
count" Later Miss Simpson was told
ii would not be wise FOR her to sell the
Mid Continent stock at once.
Simpson called again. This time he
was accompanied by man who called
himself Brooks. They Informed the
woman investor that woman in New
ark had backed out of an agreement to
buy 800 shares Of Mid Continent and
that Mr. Dorm was kind enough to let
Miss Harrison have them at s. each if
she would agree TO let Dorm have them
back al $3.50. Miss Harrison agreed to
puy, which OF course meant additional
collateral. The plaintiff also signed
another pink slip like the first one.
Miss Harrison deposited two more
Island Oh bonds. some French bonds
ard twenty shares of CrowelI Publish
ing Company preferred, besides other
securities for her second purchase.
Later she went to Dorm and demanded
back her collateral and he. It is alleged
told her, the securities had been sent
20 Cleveland
Miss Harrison, says she learned later
That her collateral was sold, although
It was understood that the selling
order applied to the Mid Continent
stocA and not TO the collateral.