Evening star., 1923-06-09
NEW CURB CRASH
FOLLOWS OPENING
Of THREE PROBES
Creditors Sue N. S. Wolfe &
Co., One of Largest Firms,
as Bankrupt.
OFFICIALS DENY CHARGE
, CONCERN is INSOLVENT
Federal, State and County Prose
cutors in Gotham Launch
p Investigations.
Nv tl,c Assoc;nted rrae...

AhNSoeAScsA0N
BY thc Associated Pros.
NEW YORK. June e.-New Works.
list of stock brokerage failures was
augmented today by the filing of an
involuntary petition in bankruptcy
against NJ. s. Wolfe & Co. one of the
largest curb market firms, with a
branch Office in Chicago.
Like the firm of l.. l.. Winkelman
.S Co., which failed yesterday, the
wolfe house had been member of
Ahe Consolidated Stock Exchange un-
nil about a year ago, when it with
Nrew after having been placed under
Investigation by the exchange.
The Wolfe firm was one of the five
hargest holding membership in the
New York Curb Market Marion >.
. Wolfe, the senior member, was admit
he'd on March L6, 1911. Other members
fpf the firm are c. n. Moulton, o. Perry
tWolfe. Carsen T. Morris and Charles
Hartman.
Relatively Small Claims.
The bankruptcy petition was filed
c,y counsel for the Metropolitan Ad-
Sertising Company. Dispatch Printing
and Bindery Company and Joseph f.
Brandenburg, who presented relatively
small claims.
INQUIRIES for information concern
Ang the action We're referred by the
6rm members to their counSeI, Ar
thur Garfield Hayes.
Suspension of NJ. ;. Wolfe d Com
. pany from the Curb Exchange was
= announced short time after the fill
ing of the petition. Mr.. Hayes issued
the following Statement:
"Our clients claim they are wholly
solvent Last night their bank bal
ance was s12O.432.SS. equity in loans,
security III hand and security in
transit ard in transfer amounts to
S2oOOOO additional. These assets are
Immediately realizablG. Slow assets
of very substantial value also are on
hand. All paid securities of Gus
toners are tagged and in the boxes
Liabilities will not exceed s4o0,O0o.
Every effort will be made 10 coop
crate with the receivers Tor the pro-
lection of creditors.
Rumors of other Failures Due.
Rumors of other impending fall
ures on the curb, slowed up trading
in the early hours of the halliday
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 Michelbacher
receiver, in bond of $4,000.
District Attorney Banton rushed
two of his assistants to the firms
offices as soon as he heard the news
instructing them to see that books
of the firm were kept available, for
scrutiny in the general investfga-
tion of alleged bucketing which he is
conducting.
Three prosecuting attorneys-the
federal government, the state and
New York county-are conducting in
yestigations of bucket shop opera
tions today with the entrance of
States Attorney General Carl Sher-
man and a staff Of five deputies.
The states entry into the situation
followed yesterdays closing by in
Voluntary bankruptcy proceedings of
the Winkelman company, the largest
brokerage house on the curb, after
Jones & Baker the firm which closed
its doors week ago.
Confers with Curb Market Head.
Mr. Sherman has begun his investi-
CATION by comforting with John w. Cur
Ills, president of the Curb Market
Association. and with w. S. Silk
worth. president of the Consolidated
stock Exchange. Both have agreed
10 cooperate with him. he said The
states investigation will be carried
on with funds derived from a 100000
appropriation recently provided by
the legislature for this work.
The states Investigations, Mr.. Sher-
Jnan said will be made under the
Martin law giving the attorney gen
sral very broad inquisitorial powers
Sn cases where complaints are made
ut buck citing orders. blue sky" stock
promotion schemes and other fraudu-
lent methods in the sale or distribu-
s:on of stocks or bonds. While stock
1Tuck eteers or fraud promoters cam
rot be sent to prison under this law,
they can be put out of business by
dnjunctions from the supreme court
on submission of proof of fraud.
Wink1emnnn Case Up Today.
The winklemann bankruptcy will
be in court today, when creditors will
seek to compel the firm to deliver its
books to Charles L. Livingston, who
yesterday was appointed receiver un-
der $4,000 bonds.
In their petition the creditors
charge the firm had been insolvent
for -four months and during that
period had transferred large sums of
money to certain creditors with the
, alleged purpose of making such
creditors preferred. Within a few
minutes of the closing of the con-
Germs doors District Attorney Banton
had started an investigation. The
New York Curb Market Association
suspended the firm shortly after the
doors closed.