The New York herald., 1922-02-25
KARDOS FIRM AHEAD
S1,500,O0O in 1924
Group Insurance for All
Employees Lapsed
With Run
RUSKAY'S MAY REOPEN
'Whirlwind of Business
Came When Public Lost
Confidence.
2 EXCHANGES DEFENDED
S. L. Cromwell Denies More
Than Four Failed Houses
Had Quotations.
9 EXCHANGES DEFENDED

Wall Street, continued yesterday
without further failures or indict-
ments.
Interest was centered in the six
firms which have gone under in the
last three days. Robert p. Stephen
son, receiver for Kardos & Burke. 32
broadway. made public a confidential
memorandum which he said he had
found among the firms papers. 1t
purported to be a statement of the
firms financial condition on Septem-
ber 80 last, and showed a surplus of
more than $1,500,000.
In one corner of this statement was
written For the personal use OF Mr.. L
and o. E." "E. and o. E." was trans
lated as ''errors and omissions ex-
cepted." One of the employees said the
statement was not worth the paper 1t
was written on SO far as showing the
condition of the concern when the smash
came.
Mr.. Kardos did not appear for con.
ference with the receiver. Arthur L
Ross, his lawyer said Mr.. Kardos would
surely be on hand to-day or Monday
pending word of the arrival Of Philip r.
Davis, the firms Chicago attorney.
More than 200 employees of Kardos
& Burke's downtown office were insured
in group for $1,000 about three weeks
a NJ
lapsed for, non-payment of premiums
An employee said the run on the firm
by it's customers extended fo: four
weeks. At one time 1t was necessary to
hire extra help to handle the business
S. S. Ruskay & Co.. another firm
which went into bankruptcy, was plan
ming reorganization, according to its at
torney, Percival e. Jackson. TIE full
details will be presented on fina, audit
of the books by Mark Hyman. receiver.
The downfall Of the firm was attributed
to "the whirlwind of business" occa-
stoned by the upsetting of public con-
fidence.
stock Exchange Makes Denial.
That the brokerage houses which have
failed recently had been allowed to do
business because they got New York
Stock Exchange quotations was denied
by Seymour l.. Cromwell. president of
the New York Stock Exchange In a
. statement following long meeting of
the governing committee. Mr.. Cromwell
said that out of twenty-five houses
which have failed since November 20
last only four had New York Stock Ex-
change tickers in their offices when they
failed. He continued:
The five houses, the failure of which
was reported in the papers to-day, were
in no instance members OF the New York
Stock Exchange. There have been only
two failures of Stock Exchange houses
since November 29. 1921. One was OF
small Importance; the second was the
failure of Z. w: Wagner g. Co. The
Exchange insisted upon an assignment
by Wagner & Co., after discovering that
IL could not continue In business without
ieopardizing the interests of its custom
ers. The failure was most regrettable
and have no disposition whatever to
minimize It's importance.
1T has been stated in the press that
the numerous so-called brokerage houses
that have recently failed were enabled tn
do business because the Stock Exchange
furnished them with ticker service. The
fact Is that of all the non-membef
houses thathave failed since November
York Stock Exchange ticker service and
had had their applications refused thir-
teen had at one time received ticker
service, which had been discontinued by
the exchange.
"onIy Four Had Tickers."
"only four of the houses that have
recently failed were at the time of fall
llre receiving New York Stock Ex-
change ticker service. The exchange at
the time of their failure had not re-
ceived sufficient evidence to justify the
removal of their tickers.
"The Stock Exchange. by reason of its
control over. its own quotations, has
been the greatest factor in the breaking
uI of bucketshops and preventing the
misuse of quotations"
The Cotton Exchange. through Its
president, Edward NJ. Weld, wrote as
follows to District Attorney Banton:
IT beg to address you because Of vari-
GUS reports in the press from which It
might be deduced that the governors
and members of the New York Cotton
Exchange were not in S. mpathy with
the recent activities of your office in
rerretlng out and prosecuting bucket
shops.
"May state that such Is emphatically
not the case? The governors and mem
bers OF this exchange are heartily In
favor OF your activities in this regard
and are heartily in sympathy with the
work our members, Mr.. Brooks and
Mr. Pierce. are doing"
Directors of the Progress National
Bank. 2l9 seventh avenue, elected Alex
ander II. Walsh president to fill the
vacancy caused by the resignation on
Wednesday Of John Burke. partner In
Kardos & Burke. Mr.. Walsh has been
with the bank since last August as
first vice-president and manager.
Creditors of Milton Helm, trading as
&ilton Helm e Co.. stock brokers. at "A
Broadway. who failed last year. will
realize about forty-eight cents on the
dollar Schedules filed In United States
"istrict Court showed liabilities Of s293.-
500 and assets OF s14i.0A. Helm had
about 500 customers with claims rang
ing from $50 to $4,000
Liabilities of Higgins e Dias. stock
brokers. So Broadway, thrown into bank
ruptcy on Thursday were eatimated at
100000 and assets were put at $4,000 by
Robert r. Lewis. attorney for the pc
titionlng creditors. Judge Learned Hand
IN Federal Court arpointed Henry b.
singer receiver for Bernard !. Higgins
o,,I Ga <t 4 .x,ttf, 1s,ft