Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-09-30
CHANDLER IS HELD
IN BAIL FOR FRAUD
Member Of Bankrupt Brokerage
Firm Is Accused by Former
Customer
WARRANT FOR MENDENHAl

The hearing of Frederick L. Chan
dler, Jr.. banker and broker, was yer 4
brief and to the point this mornin .
when he was arraigned before Magis
trate Carney on warrant charging
fraudulent conversion. sworn out by
one of the former customers Of the de-
funct firm Of Chandler Bros. & Co.
Mr.. Chandler was held under $500
bnil for further hearing In one week,
although he wanted to waive n hearing
altogether He was accompanied by his
attorney, former Sheriff Gilfillan.
Mr.. Gilfillan also entered bail In the
amount Of $500 for Earl 7. Mendcn-
hail. now in Wyoming. Mr.. Menden-
hall, another member of the firm, is
technically under arrest also. Mr.. Gil
fllan accepted service of n warrant for
him, then wired him to come East at
once. Other members of the firm for
whom warrants have been issued are
Edward s. Little and Louis e. War
ing, both of New York.
Firm Closed July "a
Chandler Bros. & Co. closed its
doors July "a and while there have
been many rumors Of warrants to be
issued for members of the firm. this is
the first one to be executed. Abraham
Sicklcs, a jcweler at 900 Chestnut
street, former customer of the firm.
charges fraudulent conversion of S291O
in stock and dividends.
The hearing room on Spring Garden
street above Broad was crowded with
witnesses and persons Mt litigation III
minor cases and their lawyers this
morning when Mr.. Gilfillan and Mr..
Chandler appeared. They stood in the
front of the hearing room, chatting,
awaiting their turn. Mr.. Chandler was
perfectly composed. He said nothing
Mt the bar, Mr.. Gilfllan doing all the
talking.
I'VE would like to enter bail he
suggested. I'VE prefer to waive
hearing.
Bail Arranged
Magistrate Carney demurred at this,
saying he thought the case should be
deferred for one week. at least. until
it could be ascertained whether the
other side. not represented at the hear
ing. insisted upon presenting evidence.
1t was settled on this basis, and Mr..
Gilfllan, with the representative of n
bonding company, arranged bail.
As he left the hearing room and
walked up Broad street, Mr.. Chandler
said he could not discuss the case ut
this time. THE fact is, he said, Il
have not had chance to go over The
books in this particular case.
Mr.. Sickles, in the affidavit on which
the warrant is based, declares he bought
100 sharcs Of Swift International stock
at S27 n share November %, 1920, and
tuul ne paid for it and the tax and COM
mission. making S2730 in all. He al
leges the firm fraudulcntly converted the
stock to its own use and also withheld
dividends amounting to $40.
+ ifp insurance policies Of Mr.. ChNnd-
Ter and Mr. Mendcnhall may be at
ta,Ilcd by creditors as the result of pro-
cpedings started yesterday by j. How
ard Reber. counsel for several Gus
toners of the firm, with John NJ. Hill,
referee in bankruptcy.
Family Beneflciaries
The matter will be decided in court,
according to Mr.. Hill, who said that
Mr.. Chandler has already filed n petit
ton with him stating the policies do
not fan under the scope of bankruptcy
proceedings, Mrs. Chandler and her
children being named as beneiiciarics
The question of whether or not the
creditors may attach the policies in or
der to secure their surrender hinges on
the presence or absence of clause per-
mitting change of beneficiary.
Six of Mr.. Chandler's policies are
exempt as being taken out before the
passage of the Bankruptcy Act, which
makes policies liable to seizure, but
the remainder, totaling $50, 900. will be
the subject of litigation. Mr.. Men
denhall's policies are believed to
amount 10 n similar sum.
Mr.. O'Neill announced today that
Harry Vessel, Jr., attorney for the re =
ceIver. is in New York in connection
with the failure. I'VE have bookkeep-
crs and accountants hard at work upon
the books today" he said, ''and much
as we would Ike to relieve the anxiety
of the creditors, we cannot say any
thing until we have completed our ex.
animation. As soon as possible we will
show just how matters stand