New Britain herald., 1923-06-09
Second CURB CRASH
Unsettled TRADING
Involuntary Petition in Bank.
ruptcy Filled Against Wolfe 4 Co.
LARGE HOUSE is CLOSED
Rumors Of Further Failure Impending
Affects Morale of spec,ilator~-
Three Investigation Into Bueketing
Now In Progress IN New York.

New York. June a.-New York
list OF stock brokerage failures wa
augmented today by the Hing of a.
involuntary petition In bankrupte,
against NJ. s. Wolfe 6 CO., one OF th'
largest curb market firms. with 4
branch office In Chicago.
lake the firm OF l.. l.. Winkelmar
& Co., which failed yesterday. the
Wolfe house had been a member oi
the Consolidated stock exchange unit
about a year ago when II withdrew
after having been placed under In.
vestigation by tho exchange.
One of Five Largest Firms
The Wolfe firm was one of the five
largest holding membership In the
New York curb market Marion s.
Wolfe. the senior member. was admit
ted In 1917. Other members of the
Arm are o. n. Moulton, o. Perry
Wolfe, Carsen T. Morris and Charles
Hartman.
The bankruptcy petition was filed
by counsel for the Metropolitan Ad-
vertising Co.. Dispatch Printing and
Bindery Co. and Joseph r. Branden-
burg. who presented relatively small
claims.
1nquirers for information concern
Ing the action were referred by firm
members to their counsel, Arthur G..
Hayes.
Mr.. Hayes. busy preparing de-
tailed statement said the liabilities of
the Wolfe firm would not exceed
s425.00o.
Failure Affects Trading
Rumors that fitted through Wall
street Of other impending failures on
the curb slowed UP trading in the
early hours of the half day session
but stocks showed greater strength
than they did at yesterdays close.
A short time after the bankruptcy
petition had been filed Federal Judge
Bondy appointed Percy Michelbacherl
receiver in bond of $4,000.
Will Investigate Wolfe & Co.
District Attorney Banton rushed two
Of his assistants to the firms offices
as soon as he heard the news in
structing them to see that books of |
the firm were kept available for scr1l-
tiny in the general investigation Of
alleged bucketing which he is con-
Quoting.
Attorney General Sherman who dis
closed last night that he was conduct
ing a systematic investigation of
many brokerage houses in the street
which are under suspicion said he
had not yet acted in connection with
the Wolfe firm. He said the failure
was not unexpected however. and
that he would conduct a thorough IN
vestigation.
The Wolfe offices were In full
swing, although there were no Gus
toners when reporters arrived to tell
firm members the petition had been
filed. I
Wolf 6 Co. Suspended
Suspension OF NJ. g. Wolfe e. Co.
from the curb exchange was an
nounced a short time after the Ming
Of the petition.
Mr.. Hayes issued the following :
statement:
Our clients claim they are wholly
solvent. Last night their bank bal
ance was s12o,452. Equity in loans,
security in hand. security in transit :.
and in transfer amounts of 5000, 900 - :.
additional. These asserts are i'm :,
mediately realizabie. Slow assets Of =
very substantial value also are on n
hand. All paid securities OF Gus n
toners are tagged and in boxes. q
Liabilities will not exceed 3460,0oo. ~
These figures speak for themselves r.
Every effort Will be made TO cooper O.
ate with the receivers for the protec-
ION of creditors" "
Investigations Under Way nj
Three prosecuting authorities-the y. l..
'sderal government the state, and W. ~
law York county-are conducting A,
OF bucket shop opera Az
ions In this city today with the en-
rance at State Attorney General Carl w
herman and staff of five deputies. N
The states entry into the situation an
oIlowed yesterdays closing by invol- he
ntary bankruptcy proceedings of
VinkeimAn g. Co. the largest broker We
50 house on ths curb after Jones & FRI
'aker, the firm which closed its tn
oors q week ago. Tr
Mr.. Sherman has begun his investi-
oNoh W Will DOill W
urtis, president of the curb market
and with w. 8. silkworth,
resident of the Consolidated stock
Both have agreed to CO. Al
perate. he said. The states investi-
alton will be carried on with funds
srived from a 100000 appropria-
on recently provided by the legisia-
ire for this work. BY
The states Investigations, Mr., sher-
an said, will be made under the tia
artin law giving ths attorney gen. mo
al broad inquisitoriai power In cases
here complaints are made of bucket !
g orders. blue sky stock promo tor
IN schemes and other fraudulent Pri
ethods in the sale of distribution of hef
Dcks or bonds. IN
While stock bucketeers or fraud l. vi
omoters cannot be sent to prison PIE,
der this law they can be put out l.. al.u
business by injunctions from the ,os
preme court on submission of proof 80
fraud, Ior
Thb Winkeiman bankruptcy will be II
court today when creditors will her,
TX to compel the firm to deliver its s,ei
oks to Charles L. Livingston, who arm
.terday was appointed receiver un- te RS
! $4,000 bond. Prir