The Monmouth inquirer., 1923-06-07
LARGEST CURB
HOUSE FAILS
Bankruptcy Petition Filed
Against New York Brokerage
Firm-9,000 Customers.
TEN OFFICES ARE CLOSED
Concern Said to Hold S1o,ooo,o 900 In
Securities PIedgad With It--Sus-
pension stirs the Market.
Rush Of Selling Results.

New York.-Jones & Baker, the
largest firm OF stock brokers of the
curb market and one Of the largest
of any exchange, went into involun.
tary bankruptcy upon petition OF
three fellow brokers of the curb. The
bankruptcy petition was filed at noon,
following notice from the Jaw com.
mittee of the curb, which had been
investigating Jones & Bakers bust
ness methods, that auditors would De
put upon their books.
Spokesman for the firm said there
had been a run" of customers clos
ing out accounts for three or four
days as the result of the investiga-
ton and rumors.
No estimate of assets and liabili-
ties could be obtained. Long &C
counts for customers are understood
to amount to $1O,000,000, with short
accounts running possibly to $4,000
900, and bank loans are said to total
about $2,500,O00. The bank loans,
according to the firm, are fully se-
cured. The Offices of Jones & Baker
were full of talk of 100 cents on the
dollar for customers.
Almost simultaneously with the ar
rival of the receiver came two repre-
sentatives of the District Attorneys
office, who demanded assurance that
no stipulation would be entered pre-
venting the prosecuting officials from
inspecting the books. At the same
time the District Attorney served no.
tice on the Curb Market Association
that he desires transcript of the
full minutes of the curb's inquiry.
Dispatches from Chicago said the
United States Attorney there has
started an investigation of Jones &
Bakers Chicago branch.
There were persistent reports that
Jones & Baker were close to disaster
during the bankruptcy epidemic of
eighteen months ago, but when the
firm weathered that storm confidence
appeared to be fully restored. The
contention is now that the firm is not
insoIvent, but that the bankruptcy
was agreed to in order to prevent a
disorderly liquidation. The firm has
nearly 10000 live accounts in all
parts of the country.
There was little general talk Of
financial weakness preceding the
bankruptcy Therefore the failure
was surprising. The profoundest Sc
crecy lies about the curb's investiga-
ton and the reasons and extent Of it.
This much Is known:
The curb market began an investi-
CATION of Jones & Baker and other
member firms about ten days or two
weeks ago. William r. Jones, head
of the firm, appeared before the law
committee last Tuesday and again
Thursday morning. At his last APP
pearance he was notified that ac-
countants acting for the committee
would begin an investigation of his
books at 1 o'clock in the afternoon.
The next chapter began abruptly
when Robert Forsyth Little of the
law firm of White & Case, IA Wall
street, filed an involuntary petition
in bankruptcy, representing three
curb members as petitioners. They
were Clyde w. Pope of c. w. Pope
& Co., 25 Broad street, with claim
of $1,000; Joseph M. Williams of
Greene & Co., 25 Pine street, claim
ing $1,650, and Robert S. Dodge of
R. S. Dodge & Co., "a Broadway. Mr..
Pope is a member Of the board of
governors. All claims are for serv-
ices.
John ~. Dixon, attorney for the
bankrupts, lassented for the firm to
the appointment of receiver. Judge
Henry w. Goddard of the United
States District Court appointed AL
fred c. Coke, Jr., Is Broad street, re-
ceiver with bond of $4,000, and the
attorneys for the petitioning credi.
tors were made attorneys for the re-
clever.
The petition set forth on informa.
ton and belief that securities of value
in excess of $7,000,000 have been
pledged with the firm to secure the
Indebtedness of more than 5000 Gus
toners to whom the firm would be
unable to make deliveries upon pay
ment of debit balances, and that
these customers therefore have claims
in bankruptcy against the firm.
Reporters called at the Offices oil
Jones & Baker, SO Broad street, and
asked for Mr.. Jones. Mr.. Little, at
torney for the petitioning creditors
and the receiver, came out to answer
questions. He was asked:
LIQUOR TRIPS CLEAR 100000