New-York tribune., 1922-10-26
Referee Orders
kardOs &Burk
BooksExan1ined
Desperation of All Credit
ors Asked in Tracing
Possible Undiscovered
Assets; Schedules Filed
Select Accountants Nov. i
oummonses Against Partners
in W. H. Mckenna Case
Dismissed by Magistrate

lively meeting Of the creditors of
the tailed stock brokerage firm of
hardos Burke, marked by the heck
hhg OF David w. Kahn, attorney for
the trustee, took place yesterday when
the bankruptcy hearing was called by
Referee Peter B. Olney. 1t resulted in
the referee deciding that there were
enough creditors present who wanted
the firms books examined by expert ac-
countants to carry the day, even
though Mr.. Kahn declared that only an
inhnteslmal number wanted this done,
The creditors, led by Benjamin Bull
mer, OF 70 Nassau Street, represented
claims of $4,000.
inc bankruptcy schedules of the
frm, which comprised Louis Mont
gomery kardos and John Burke, for.
ner treasurer Of the United States,
were MED yesterday in the Federal
court; they put the liabilities at ST.
ioo'oio, with assets Of $258,O75. The
bankruptcy, petition was filed on Feb
ruary u last. Branch Offices were
mair tanned in Philadelphia. Baltimore
Pittsburgh, Boston and Chicago.
cIs oeIt TO Creditors
meeting of creditors was held in
Mr bulmers office after the hearing
was closed, as result of which let
ters were sent out to all creditors
ASKING them to cooperate with a cred
itofs committee which has been formed
IN tracing possible undiscovered assets,
MIR. Bulmer addressed the referee
after Kardos had been testifying as to
some OF his personal losses in the
fenlnsula Transportation Company and
the F1tzgibbons Chemical Company. of
Washington, and also as to his having
contributed $4,000 to the firm in an
effort to save it.
"A number of attorneys are pres
ent," Mr.. sBulmer said, "for the pur-
pose of having the books audited. The
business was conducted in six or seven
cities, and unless the books are exam
med they are not in position to ex-
anime the bankrupt as to whether or
not he has hidden any of the funds Of
the customers.
Suspect Hidden Funds
"In the Dier case and others it has
been found recently that the account
ants, after examining and reporting
on the books, have been able to find
enough hidden funds more than to pay
LUZ Vic eNdillllallOn.
Mr.. Kahn was asked if the three
pctitioning creditors, Joseph w. Ris-
teen, Lawrence R. Beatty and Clarence
S. Carr, had not been sent to him by
Arthur l.. Ross, attorney for Kardos.
II believe they came from Mr.. Ross.
| never knew Kardos," Kahn replied.
Wasn't one of these men employed
as confidential clerk by Kardos 2"
Melniker continued.
Yes; that man Risteen," creditor
interj rjected.
The meeting continued to grow
warmer, one creditor. declaring that
half the creditors did not know there
were any bankruptcy hearings, and an
other informing Mr.. Kahn that he
was good lawyer for the bank
rupts," statement which he delivered
while in the act of shaking hands with
the trustees attorney.
There will be meeting on Novem-
Der l at which the accountants for ex-
amining the books will be selected.
Summonses Dismissed
Magistrate Earl A. Smith,, sitting in
the Tombs Court, yesterday dismissed
summonses served against William H.
McKenna and Algernon Brown, part
ners Of William H. McKenna G. Co.,
whose once was at 20 broadway and
who failed on October 6 last. The
who charged them with
property, was Benjamin
Levine, of l Madison Avenue.
Levine told of dealings with man
named Stewart, of McKenna e. Co.'s
uptown office, through which he said he
had sent in checks of $500 and $79O for
purchases of stock, which were never
made. The magistrate held that any
criminal charge made should be against
Stewart.