Evening journal., 1922-02-20
SAYS KOHN HAD
SUCKER LIST"
Referee in Bankruptcy Tells
of Letters to Prospective
Clients
QUESTIONS USE
OF THE MAILS

PHILADELPHIA. Feb. 90. - Up
until a day or two OF their failure
and at a time when they were hope
lessly bankrupt. Edwin f. Kohn &
Company. 1922 Walnut street. sent
many letters to prospective clients
In alleged schemes TO get their
money and stocks
David Phillips. referee has a num-
Der of these letters. which. he says,
show that Kohn & Company used
mails 20 defraud and that they could
be prosecuted by the Federal au-
thorities
AS an example OF how Kohn &
Company tried to get good stocks OF
their clients, for which they would
Cove them alleged worthless securi-
ties. Mr.. Phillips cites from one OF
the letters the following:
I'm view Of the fact that, we have
learned. during out long association
with investment affairs. that there
are mauy investors who have securi-
ties the value Of which they cannot
tell at a glance, It occurs to us that
parhaps such a situation applies TO
Yourself.
If you will furnish us with list
Of the securities you own we shall be
pleased TO find their value for you
and tell you OF the latest develop
p lments"
Mr.. Phillips asserts that such a
letter would bring replies from just
the kind OF people Kohn and Com
pany wanted to deal with-those
who did not even know enough
about the stock market TO know
what their securities were worth.
But he asserts that the firm did not
,onane It's dealings to the supposed
ly ignorant, but specialized some
times on school teachers. army and
navy officers flooding the Phlladel-
phia Navy Yard and nearby canton
ments with circulars.
The last form letter sent out by
Kohn and Company was on Janu-
ary 10, a day before they were de-
,lared insolvent in New York and
.wo days before the receiver wa 8
appointed here. This letter. in part.
vas as follows:
"We know of stock that has not
participated in the upward move OF
prices. Il seems destined TO sell
much higher shortly because il usu-
ally had a prominent place in any
upward move and the present posi-
lion Of the company seems 10 JUS
.ify It.
This stock has been spoken NJ as
In line for dividends soon. and such
tction would doubtless be reflected
by an advance prior to dividend
declaration. This stock is selling
twenty points below the average
price Of the last ten years. Net quick
assets equal over four and one e-hal.
times the present market price o.
the stock"
Another letter mailed two day
before the failure. read IN part, a
follows
"Have you ever considered tn,
stock brokerage business in tn
light that it's a business OF Service
SO with the thought in mind OF i'm
proving our service in your connec
tion we are handing you the encios
ed card, with the request tha- voi
will m IL in and mail Il 10 US in tn
enclosed stamped, addressed on
velope.
Mr.. Phillips Is emphatic In hi
declaration that Kohn conducted
bucket shop. He asserts the firm
would have 10 do a business OF 10.
800 shares OF stock day 10 maxi
enough money TO pay its Legitimate
expenses
The receiver has proposed tina
State Legislation would be the onl.
safe method to prevent similar buc
kot shops from operating In thi
4 city. He now adds to this suggestion
that the police be required 90 lool
Il up the record Of every person VIII
wants 20 enter the stock brockerag
4 business and that the informatio
obtained be sent TO the state Bank
ing Department. under whose juris
y diction a separate and technical In
vestigation would be conducted. -
this had been done with Kohn," de
clared Mr.. Phillips. "he would neve
81 have been permitted to start in busi
4 ness.
George II. Kohn. 20. who is bein
II sought I'm connection with the fail
ure Of his fathers brokerage firm
Is said to have been engaged TO
married.
Il David Phillips. receiver for IN
81 firm. has received the followin
81 anonymous letter:
a ALLOW me to inform you tina
Il Miss Anne Nichols. 5540 Angora tel
q race. was the recipient Of an elat
4 crate diamond ring last Christina
4 from George Kohn. son Of Edwin I
Kohn. I. being one Of many loser
through Mr.. Kohn's dishonesty, fe'
that this ring should be include
among the assets
3 Miss Nichols mother denied thf
the girl is engaged 20 Kohn and r,
fused to say whether she has N
ring.
q I1-n-r,N.IIIrS Ar nIE ArnrNr,