The New York herald., 1922-09-15
EXPEL z MEMBERS
|. OF STOCK EXCHANGE
Officials Lay Unfair Con-
duet to Men in Firm of
Hellwig & Reuter-.
OIL SHARES INVOLVED
Sales at 100 When Price
Was Around 20 or 80
Charged.
FIRM WILL SHUT DOWN
Decides Tt Cannot Continue
in Business in the Cir
cumstances.
FIRM WILL SHUT DOWN

Seymour l.. Cromwell, president Of
the New York Stock Exchange. an
nounced yesterday the expulsion Of
Theodore A. Hellwig and Robert II.
Reuter- from membership With
Charles E. Reuter- they compose the
firm Of Hellwig & Reuter- stock
brokers, 25 Broad street.
They were charged by the board of
governors with conduct inconsistent
with equitable principles of trade"
President Cromwell's announcement
did not amplify the charge. 1t was
learned, however. that the alleged act
consisted in selling bonds Of the Rari-
tan Refining Company to customers
for whose business there was compe-
tition at around 10 or 80 and at the
same time selling to confidential Gus
toners at about 100.
Mr.. Reuter- stated that, obviously
being unable to continue in business
without the facilities of the exchange.
his firm would liquidate. He declared.
though. that he and his partners had
been considering liquidation for the last
were begun a month ago. He explained
that 1t appeared impossible to make
any money on straight commissions ex-
cept in big bull market.
1t is understood that r. II. Reuter-
owns a large interest in the Eastern
Potash Corporation. holding company
for the Raritan Refining Company. and
that a member of the firm is treasurer
of the latter concern.
Statement Issued by Brokers.
Hellweg & Reuter- issued statement
saying:
This firm owes its friends and the
public an explanatory statement In rela-
ton to the surprising action OF the board
of governors in expelling its two floor
members from the Stock Exchange.
Something over a year ago this firm
assisted in the sale of large part OF
a million dollar issue of the bonds Of
a new corporation. The bonds were dis
tributed at or about par. Since the
original sale the corporation has been
successfully launched and is earning
considerably over interest requirements
Of the bonds.
Last fall and early spring the corpo-
ration continued the sale Of these bonds
at or about par, and such sales were
same time the corporation found itself
in need OF funds for the completion of
the plant and IL became necessary to
sell at material concessions small
amount of these bonds, which were also
cleared through our office, as one of our
men. bers was treasurer of the corpora
ton.
"These stress sales, coupled with the
fact that other holders financially en-
barrassed were disposed to sell their
bonds at sacrifice, brought about a
condition which the Stock Exchange has
charged amounted to a market for the
bonds at price materially under par.
1t has been our claim that these few
occasional sales at prices under par did
not create what could properly be called
o. market and was in no sense a proper
criterion to determine the fair selling
price of the bonds.
says Concern FIourfshes.
THE corporation is in splendid condi-
ton has paid to date. owing to a par
ticipating feature of the bonds. interest
at the rate OF more than IL per cent.
and is earning considerably more than
the interest requirements. SO that the
bonds have been regarded by the cor
poration and by our firm as worth their
face value.
I'VE have been charged with conduct
Inconsistent with equitable principles Of
trade In continuing to clear the bonds
In sales at or about par when the stress
sales were made at material concessions
under par.
1--WE feel confident that this statement
will be duly credited by our friends and
car bnpa for onIy charita BILE cOnsidera- :