The New York herald., 1922-02-24

members of the Arm were Joseph A.
Rasmussen. Fred Hansen and John
Firth, the latter being a special partner.
In the case OF Rodney & Co, also, no
estimate was made. of assets and Ia
bilities. The petitions and the amounts
claimed were Solomon Pokol, $t20, Jo-
seph Rose $3.50. and Sarah TurnbuH,
81 900. The members OF the firm were
Arthur L. Rodney, Louis Goodney and
Fred A. Henry. Judge Hand appointed
Harold Remington. under bond OF
SIS. 1000 as receiver for this Arm.
The failures followed each otkar
through the day. The last TO be mace
known was that of Higgins & Dias OF %
Broadway. The firm is composed OF
Bernard j. Higgins and Samuel Fl. Dias.
No estimate of the assets and Liabilities
was made. Robert p. Lewis was the at
torney for the petitioners. who, with the
amounts of their claims, were Harry II.
Hull. $40; Sorg Printing Company. $50,
and Wilfred Lippe, $500.
although the number or failures
marked a new record and caused much
SPECULATION and excitement in the fnan-
cial district, the public interest generally
centered on the failure of Kardos &
Burke Of SO Broadway. announced the
previous evening. That was due in pat
to the fact that John Burke was a mem.
ber Mr.. Burke. it appeared, however,
had not been the active partner and
there had been a third, of which practi-
cally nothing was known until yester-
day. He was Jay A. Greenwald. who
withdrew from the firm recently. He
Will. however. be made party in the
bankruptcy proceedings, probably IT,
day, according to an announcement yes
terday by David w. Kahn, counsel for
the petitioning creditors.
At conference with the receiver and
his attorney at the Office of Mr.. Kahn
at 120 Broadway Burke turned over to
the receiver all his personal assets,
amounting to approximately $500 IN
bank deposits and life insurance policies
for $4,000. fully paid up. and payable TO
Mrs. Burke as beneffciary. Burke also
told the receiver that about three weeks
ago he put UP s20,500 in an effort 70
save the firm.
Mr.. Burke Broke, He Says.
II lose everything I own" said NJ.
Burke. 1T was a partnership and
everything | have goes with it. Every
thing seemed to be going all right unt'l
propaganda started n few months AGO
and runrors began to circulate which
were without foundation. Customers fe'l
Oft and business began dropping off, but
the overhead kept up
Mr. Burke and Arthur L. Ross. coun-
SCI for the company. both asserted that
M Bantons investigation into the
hncket shop situation. together with the
vice publicity accompanying 1T, had so
destroyed the confidence Of the invest
lmg public that it was impossible for
tan firm TO keep on. Mr.. Ross also had
sad that Mr.. kardos would be on
hard. but he did not appear
harcos checked out OF the Breton
l}all Hotel on Tuesday and was not TO
be found. Mr.. Ross believes. however.
that he viii appear to-day. His career
has been spectacular as he is only
about 2s. and few years ago was a
messenger at $40 n week There was
some trouble regarding Liberty bonds
which he handled I'm 1918 and some sur
prise in the financial district when Mr..
Burke became his partner 1t is under
stood however. that Kardos was recon-
mended to Burke by members Of the
New York exchanges and by officials of
banks here and in other cities. Mr.
Burke is understood to have shown
some of these letters of recommended
tfon to the receiver.
AT the conference Mr.. Burke also dis
played the original partnership agree
ment. clause of which prohibited the
partners from engaging In trading on
tne Trims account. 1t was also pro-
Vided that neither partner would trade
on his own account without the con-
sent of the other
May Have 100000 Assets.
Mr.. Ross asserted that instead Of as
sets OF $4,000 the company actually
Dad that amount in New York alone.
re estimated the total assets at s40o-
400. He seemed to feel, too. that the
company might realize from damage
suits he intimsted might be brought
AGAINST other brokerage houses. but this
wnoie matter was held in abeyance as
the receiver was not Interested
The fact that Greenwald had been a
partner was not apparently generally
Known. Mr.. Kahn holds that Green
waid shares responsibility with the
other partners and may go into court
Today in an effort TO call Greenwald
INTO the proceedings.
The actual fling OF the papers in the
hardos & Burke case took place yes-
terday and Judge Hand. in appointing
Robert Stephenson receiver. set the bond
AT $4,000. The petition was made on
benaif Of Lawrence r. Beatty. who has
claim of 800 and Clarence &. Carr
with claim of S23S. The liabilities
were estimated at $4,000 900 and the
assets S15O,00O. The house was a mem
Der of the Consolidated Exchange. The
president, w. s. Silkworth. said he had
heard II was in some trouble. but had
felt jt would v-oo fbar st,n