Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-06-16
ANOTHER NEW YORK
STOCK FIRM F A|LS
Knauth, Machod & Kuhne,
Members of Exchange 28
Years, Goes to Wall.

BY the Associated Press.
NEW YORK, June 16.-Knauth. Ma
chod and Kuhne. member of the New
York Stock Exchange, failed today.
An involuntary bankruptcy petition
filed in federal court. estimated liza
bilities at s11,00O,O0o, with assets in
securities of about the same amount.
NJ S. Borland was appointed receiver
under $4,000 bonds.
The firm was admitted to the ex-
change, March IS, 1895. and did q
large business between this country
and Germany. 1t also engaged ex-
tenSively in commercial investments
and foreign exchange.
The firm was most active in oil. Sc
curities. recent weakness of which was
attributed to heavy selling for its ac-
count. These stocks showed better
tone after announcement of the failure.
committee has been formed to act
for both creditors and depositors
Certain banks which are secured credi-
tors will be represented, but VIII act
as members of the creditors commit
tee on behalf of unsecured creditors
First This Year.
Today's failure was the first reported
by the New York Stock Exchange
since December. 1922. when the Kansas
City firm of Houston, Fible & Co.
crashed Several curb and consolidated
houses. however. have gone to the wall
recently.
Suspension of the firm was an
nounced from the roStrum of the ex-
change at the opening of business to-
day. Members of the firm are Mrs.
Mary l. W. knauth. Oscar l.. Gubei-
man, Rollin c. Newton, James +.
Shaw, Herbert &. Smithers, John r.
Hall and Theodore w. knauth. MIR.
Shaw issued the following statement:
For the protection of all our cred
itors we have consented to the APP
pointment of receiver for our firm.
which has had an honorable career
for more than seventy years. We ara
advised that in this manner can best
be preserved all of the equities OF
creditors, so that none will be favored
or preferred over another
Securities Intact.
1T will be found that all securities
entrusted to our care are intact, and
we hope to effect a satisfactory set
Element with our creditors and de
positors at the earliest possible date.
I'VE own a considerable number
of securities which have value but
which, on account of market and
other conditions. are not readily
Salable and which, we hope, if con-
served and wisely liquidated will. to-
gether with other assets, be found to
be sufficient to pay everything that
we owe.
We will, of course, cooperate with
the receiver in every way"
The firm also was suspended from
| the New York curb market
In a canvass of the banks in the
| financial district. it was revealed that
| the firm had comparatively small
| financial relations with local bank
| ing institutions.
Bankers do not believe the failure
will prove a large one, pointing to
] the fact that the firm held large
! amount of slow moving securities
| and it was impossible for these to be
/ liquidated quickly.
Involved During War.
| Knauth, Nachod & kuhne. ac
cording to the Bishop Information
Service, were involved with the gov
eminent during the war. under the
| trading with-the-enemy act. -Four
| members, living in Germany. We're
J compelled to sever their connections.
after which the firm was permitted to
| continue its business.
Last summer, it was said, the firm
faced a serious crisis because OF the
losses in foreign exchange. This Sit
uation was said to have been met by
| the introduction into the firm OF new
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