New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-07-08
DER Gives Tn
And Is Let Out
On $4,000 Bail
Broker Declares He Was iii
at His Home All the
Time That the Detectives
We're Searching for Him
Denies Larceny Charges
Biames Absence of Ticker
Service and Dereliction
of Employees for Failure

20, the stock brokerage firm that
failed for s4,ooO,OoO in January. sur
rendered yesterday to the District At
torney. He was indicted on June 30 on
sixteen counts charging larceny and
bucketing. DER was taken before
justice McAvoy, in the Supreme Court,
who released him in $4,000 bail.
Dier said that lie had not been out
side of New York, and that he had been
under the doctors care at 565 Park
Avenue. He appeared yesterday to
have recovered from his indisposition
and was calm throughout the court
proceedings.
Il have been in New York City under
the care of physician" DER said. II
nave not been evading the law and 7
have not been away from my home. 565
Park Avenue"
"Dier will welcome an opportunity,
a spokesman said, "to demonstrate the
tact that he is neither thief nor a
bucketeer." To which statement DER
nodded assent.
Larceny Charges Read
Word that DER was coming to give
himself up was received at the Crimi-
nal Courts Building ct 80 o'clock yes
terday afternoon. He arrived there
about forty-fve minutes later in a
small canary colored roadster driven
by his physician, DR.. J. L. McTiernan,
or 565 Park Avenue, the same apart
ment building where DER resides BY
the time he had reached the corridor
outside of District Attorney Banton's
ofiice small crowd had collected about
him.
Detective Edward Rayens took charge
OF DER and conducted the party to
Fart | of the Supreme Court. Mr..
banton appeared to take personal
charge Of the case. Two counts were
read against DER, one charging grand
larceny and the other larceny in the
second degree, under Sections 800 and
1914 of the Criminal Code.
j., DER pleaded not guilty. Mr.. Banton
then informed the court that an agree
ment rs to bail had been reached and
requested Justice McAvoy to set it at
| $4,000. To this the court assented, al
though it had been expected that a
much larger bond would be required.
he court gave Dier's attorney week
IN winch to prepare his legal papers.
DER Not a Citizen
der gave his age as forty three and
his birthplace as Canada. He is not q
citizen of the United States, although
he has taken the preliminary steps
toward naturalization.
Representatives Of surety COMPANY
furnished bail bond, and DER, with
his physician, re-entered the canary
colored roadster and sped to the Office
OF Max L. Arnstein, 800 Broadway.
Nash lockwood, Dier's regular attor-
ney, is in Maine.
of E. D. der & Co. that the failure
was due entirely to two causes. These
We're. first, the refusal of the New
YORK Stock Exchange to install it's
stock quotation ticker service, and.
second, to the Encouragement of the
employees Of the firm, including at
least one of the men named in the
present indictments.
1t was stated in Dier's behalf that
every transaction made by Hughes &
DER and +. D. DER & Co. was honest.
SO far as Dier's knowledge went, and
mat orders were properly executed.
der drew only money for living ex-
Penses from the firm, it was said, and
!, ne made these Withdrawals con his be-
lief of his financial standing," and
that nearly all of it was turned back
in an effort to save the firm" The
statement continues:
Denies Bucketing Orders
ut was not his duty or function to
handle the financial or brokerage end
OF this large and extensive business,
which OF necessity had TO be handled
by employees in whom he had con-
hdence. Mr.. DER never took a dis
honest dollar out of the concern and
IN no wise participated in or had any
knowledge of any so-called 'bucketing'
OF orders or of any improper transac-
tons. He has never at any time since
the firms affairs have been under in
vestigation left the city,, except for
occasional short trips in the effort to
rehabilitate the firm, and has always
been within the courts jurisdiction"
A hearing will be held in the bank
ruptcy proceedings before Judge Mack
in the Fedora! Court at 10 o'clock to-
day. The receiver will then submit
the detailed accounting, showing
what the creditors will receive.
1t is expected that creditors repre-
sentatives from Chicago, Philadelphia
and Milwaukee will be present, as will
also Daniel w. Blumenthal. Mr..
Blumenthal represents group of
creditors who are opposed to accepting
the 100000 contribution offered by
Charles A. Stoneham, part of whose
business E. D. DER & Co. took over
when Stoneham went out of the broker
age business in 1921, on the ground
that in view of the subsequent failure
no settlement should be received from
Stoneham without further investiga-
ton of the circumstances.