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BROKER CRASH DUE TO OIL AND MARKS Knauth, Nachod & Kuhne Have Ample Slow Assets, Eleven Million Debts. By the Associated Press. NEW YORK, June 16.-Wall street, in the midst of a many-sided clean-up campaign. directed primarily at bucketshops, was hit today by another failure-that of Knauth, Nachod & Kuhne, a member of the New York Stock Exchange, and of the New York curb market. Boasting a record of seventy years them in the street, twenty-eight of as members of the stock exchange, the supposedly powerful house, with strong German connections, was forced into receivership with $11,000,000 liabilities. A statement of the firm, however. declared its assets were ample to meet its obligations. provided they were administered wisely, although it was admitted that a large portion of them were "assets." The failure was the first involving a stock exchange house in more than six months, although there have been a string of curb and consolidated exchange failures. No Suspicion of Bucketing. Unlike most of the recent failures. there appears no suspicion on the part of the authorities that Knauth. Nachod & Kuhne had engaged in the popular business of bucketing orders. Their failure, it was indicated was due primarily to unsuccessful oil promotions. and in a lesser degree to the falling market for German marks. in which they were the most extensive dealers in America. Besides stock broking and dealing in foreign exchange, the firm did a large international banking business and it was this angle of the failure that appeared to give members great concern. It was admitted that a numher of travelers abroad had put their funds into letters of credit issued by the company and it was feared these travelers would find themselves embarrassed for funds and European banks no longer would honor the letters. Just how many such cases there were could not be ascertained. District Attorney Banton rushed three of his staff to the firm as soon as news of the filing of a bankruptcy petition reached him and they obtained assurances from M. S. Eorland, the receiver, that he would make no stipulations with the firm that would prevent disclosure of their books for his scrutiny. The firm issued a statement declaring they would welcome such scrutiny, as they had nothing to conceal. Wants Teeth in Rules. Another development in the tangled a brokerage situation today was statement by Mr. Bantan charging that the stock exchange and the curb market had put no "teeth" in their recently adopted resolutions providing expulsion or suspension for any member who refused to disclose his records for examination in a civil or criminal action. The "teeth" that were omitted, he said. was a provision for discipline of members who refused to waive immunity in so disclosing their records. He indicated hope that the two exchanges would rectify the omission. The bucketing situation is expected to come to a head Monday when Edward M. Fuller. confessed bucketer. appears at a referee's hearing ready, the authorities hope, to tell au he knows about irregular operations in the street. There have been reports that Fuller. hoping to gain leniency when he comes up for sentence Tuesday, would make a "clean breast." involving a ring of higher-ups, who are reputed to control most of the city's bucket shops. Fuller was silent in his cell today as to how far he would go in his testimony. His partner. William F. McGee, who also pleaded guilty of bucketing, has maintained throughout a determined silence, declaring he pleaded guilty only to save innocent friends from further difficulty because of the case. Another development scheduled for Monday in which the street evinced great interest, was a meeting of the Consolidated Stock Exchange, at which action was expected on a resolution similar to those put through the stock exchange and the curb, requiring members to make their records accessible to the authorities. LOS ANGELES BROKER FAILS
