Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-01-25
.KOHN TOOK RICHES,
! RECEIVERS CHARGE
Failure Gigantic Fraud Court
Il Hears-Start Probe by
Special Referee
MOST ALL ASSETS VANISH

Edwin r. Kohn. head Of The broker.
age firm of Edwin Il. Koml, 1922 Wal
nut street, which failed Saturday. has
absconded with largo sums Of money.
according to the receivers, He is be-
lieved to be in san Francisco.
The charge was made today before
Judge Dickinson. in the nlted States
District Court, when Assistant Dis
trict Attorney Kun and Edmlmd Kirby.
representinG the receivers. appeared and
Informed the Court that the failure was
Gigantic fraud They appealed to
Judge Dickinson to appoint immediately
special referee in bankruptcy 10 con-
duct an Investigation in an cndeavor to
save something from the rain.
The Court in!mediatcy appointed
Walter G. Douglas as referee
Attorneys for the creditors also sue.
ceeded in eliminating GcorG" T.. kohn,
q son of the broker. paper partner.
from the proceeding. Judge Dickinson
was told that he j. minor. who i
missing with his father. and nothing
could be obtained should he br apprc-
hended The Court finally ordered the
name OF the boy removed from the pro-
seedlings.
Case Gigantic Fraud'
This case appears to be one of
series of fraudulent failures recently.
said Mr.. Kirby.
1T Is Imperative that all invGStiga-
tion be started al once to trace valuable
assets uf the bankrupt firm which We
understand were hypothccated by Ed-
win +. 'Kom shortly before the failure.
This pasn iS giVanfip fraud nDl
die. Father and son. who ran the bust
ness. have abscOnded. and warrants
have been issued for their arrest"
A partial examination of the books
Of the firm disclosing that the elder
Kohn had withdrawn large sums Of
money just before the failure, led coun-
sci for David Phillips. the equity re-
ceiver. to hurry a special investigation
of affairs under the bankruptcy action.
What disposition the firm made of
moneys and securities deposited by eli
ents on accounts. and money paid for
the purchase of stock is not ascertain
able, II was declared but thcs" mat
ters probably will be cleared IN in the
investigation.
In the present state Of the records. it
was averred. it Is not known what dis
position was made of stock and sccurt-
ties, and il was for compelling kohn
and his son to tell what became Of these
assets that the special commissioner was
appointed.
Fear Others Will Vanish
The attorneys declared also thl.
kohn had hypothecated real and per-
sonal assets as well as securities and
moneys of the firm, placing some in
the name of his wife.
Father and son have abscOnded," "
Mr.. KirbY said. "and there is q posi-.
lie likelihood that other persons who
have received transfers of assets may dc
likewise. We want to have n special
investigation Of the matter while these
persons lrc available. 80 that We can
learn in what manner and for what
reason these assets were assigned
Assets have disappeared mysteriOnsly
in New York City. according to Ber-
nard j. RHes. the ancillary receiver
appointed by the New York state
courts.
"Conditions arc very bad here. said
Mr., RceS today. 1--WE understand
Kohn and his son are in or near San
francisco. We are doing everything
we can to capture them. The Liabilities
are moro than 500. 600 in New York
alone with few assets. Tie employees
are back $1,000 in their salary.
last Friday night some one broke
into the Kohn office. at - Broadway.
and stole all the movable furniture and
typewriter. We. are on the trail Of
those who stole the goods and will prob
ably recover about $4,000 worth OF fur
niture. The assets here are smali--a
few dollars IN cash. the seat on til"
Consolidated Exchange and some ac-
counts receivable
Restrain DER Auction
Ar auction sale of 100 shares Of -
New Street Corporation stock. belong.
ing to T.. y. Dicr 4 Co.. bankrupt
brokers. 143J Walnut street, by Barnes
& I.ofland. auctioneerS. at T. O'Clock
today. was restrained by United States
District Judge Dickinson today on the
request of Clarence Loeb. ancillary
receiver of the brokerage firm.
. The stock stands in the name of the
,defunct brokers. Mr.. Loeb dec'arrd. and
a sale at auction now would injurc
the creditors. In restraining the auc-
rioucers, Judge Dickinson included in
The order provision that any person
having an interest in the stock may pc
1ltion the Court to vaCatc Or modify
Ihe restraining order