Los Angeles herald., 1908-10-21
DORR SUBMITS
TO INQUISITION
BY CREDITORS
APPEARS BEFORE FIFTY AT
REFEREES OFFICE.
SUBJECTED TO SEVERE FIRE OF
SEARCHING QUESTIONS
Proceedings Adjourned to Tuesday
Next, Trustees Bond Being Fixed
at 5o,ooo-@No Settlement
Is Offered
CRED DORR and fifty of his credit
ors of their representatives, ap-

" RED DoRR and fifty of his credit
| h ors of their representatives ap-
u peared before Lynn Helm, referee
in bankruptcy, yesterday afternoon A
searching examination of Mr.. Dorr was
| started. following the unanimous seiec-
! tion of Carroll Allen as trustee, put
Referee Helm halted the questioning
until the referee could find time to llst
the claims and dispose of other preilfnl-
naries. Another meeting of credltors
will be held next Tuesday morning at
10 o'clock. at Referee Helms office in
! the Los Angeles Trust building, ana IL
promises to be the beginning OF
/ series of close examinations of Mr..
! Dorr.
! Judge Wellborn had recommended
| that the trustees bond be made $zo,oOV'
| but after consideration of the account
| ants report the creditors decided 10
make it $4,000, although the referee
expressed the opinion that bond OF
| S10O. 900 was not unusual for trustee
| shin of similar magnitude. 1t was
finally at Mr.. Helms suggestion thar
! $4,000 was decided upon.
In opening the meeting Mr.. HEM
! took time to explain that, altnoush nc
/ had been Mr.. DORIS attorney at one
time. he was not in any way connected
with the debtor at the time OF MS
| failure.
WAS he a client of Carroll Aliens
| at that time?" asked a creditor.
.Mr. Dorr was stranger to me
prior to the time he was declared IN,
| solvent" said Mr.. Allen. Il never nad
any dealings with him.
| When the referee asked whether any
| creditors desired to question Mr.. Dorr'
| Judge Wheaton A Gray arose with
! file of doucments. A stenograpner was
| sent for, Mr.. Dorr was seated in front
of the referee and the room TOOK on
! the atmosphere of court.
Tudge Grav nut a number of queries
| on behalf of his client Homer Laugh
! lin sr., with view to tracing the dis
! Dosition of 100 shares of Pennsylvania
| stock placed with Fred Dorr for sale
| July IS. and because of which the sum
of S6,242.75 appears against Mr.. Laugn-
Inns name in the list of creditors;
! Judge Gray's questioning was directed
| toward the location of the stock, or
| the money obtained from it's sale. He
| traced the stock to Mr.. DoEr's New
! York correspondents, Harris, winthrop
&. Co, who had sold 1t on his order,
Mr.. Dor-r said.
Receipt Merely Credited
/ "Now. where is that money!" de-
! manded the attorney.
"It was credited on my account,
| said Mr.. Dorr.
| -WndC 90 you IllSdh ny NiaoS etAe'N
| they paid debt of yours with 1t
| 'sI had an open running account with
Harris, Winthrop &, Co., and the sum
was put into that in the regular order
| of business"
By further questioning Judge Gray
learned that drafts had been drawn on
the New York correspondents toward
! the end of July which placed the
money he was looking for in Los
| Angeles bank. Which bank 1t was Mr
I Dorr said he could not state definitely
without reference to his books.
"Didn't you bring any books with
you?" asked Judge Gray.
"The receiver has all the books, in
! terposed Referee Helm. "and you have
the privilege of examining them."
But about that money; have you
got it now?" questioned the attorney.
Mr. Dorr hesitated.
at am a bankrupt" he said. slowly,
and apparently with some effort.
Sure, we all know that" said Judge
| Gray. "But at the time you became
| insolvent was the money realized from
the sale of these particular shares of
Pennsylvania stock in the bank in
your name, or did you have it in your
office, or was it placed to Mr.. Laugh
| Inns credit?"
ST have tried to make it clear" ex-
! planned Mr. Dorr, "that the transac-
l
business is managed and according to
| rules of the stock exchange"
''You haven't made anything clear to
me. 7 an1 trying to learn just where
that moneyis. I don't know yet" said
/ Judge Gray.
Anxious to Explain
After the meeting had closed Mr..
Dorr explained to Judge Gray that he
desired to make the transaction en-
tireiy clear and went over the business
| again.
'I am anxious to furnish any infor-
nation that may be desired" said Mr.
Dorr to the creditors, ''and shall an
swer all questions fully. If Mr..
Vaughan or any one else connected
with my business. can give any facts
of value I shall be glad to have them
called upon"
When Judge Gray finished, Mr.. Catu-
dal, who had placed numerous orders
for options with Mr.. Dorr, asked per-
mission to question him relative to
their business relations Mr.. Catudal
produced memoranda of his order for
the purchase of 5000 bushels of Sep
tember wheat at 80 cents and numerous
other data of a similar nature. He
wanted to know if Mr.. Dorr had not
assured him that he did no bucketshop
business, and that the orders would be
all placed with reputable brokers in
Chicago.
"Yes. I did" said Mr.. Dorr
After Mr. Catudal had been assured
that he had not been drawn into a
bucketshop deal he objected to the
memoranda as not showing the names
of any Chicago brokers'
I'VE could not do that on the wire
confirm" said Dorr. "The brokers'
names did not come in until we re-
ceived the mail confirm. which was
four or five days later. If you had de-
sired to know the names the informa-
ton was available for you at my Of
flee at any time after receipt of the
confirm by mail"
isn't it customary to put the name
in?" asked Mr.. Catuda1.
"In Chicago it isl said Mr.. Dorr,
"but not in outside towns, because they
could not know at the time"
"Well, in twenty-three years of buy
ing and selling i'm futures I had not
known it, asserted Mr.. Catudal. Now,
when I bought"
"You are not a Witness interposed
Continued ON Page Two