The New York herald., 1922-11-01
SHOWS BROKERS LED
BY Ring OF BACKERS
Silent Control of Another
House by Consolidated
Firm Revealed.
BANKRUPTCY RESULT
Nominal Head of Culver &
Co. Tells of Affidavit to
Conceal Connection.
DUMMIES MADE USE OF
Lawyer of Failed Dillon Firm
Il Ordered to Appear This
Afternoon.
DUMMIES MADE USE OF


STOCK broker firms. most of which now
are bankrupt. was shown yesterday
when III. w. Culver. formerly head OF
Culver & Co, testified that that firm
was backed and operated by ]. c.
Rabiner, head of the bankrupt Con-
solidated firm of J. c. Rabiner & Co,
and Dandy Phil" Kastel. alleged
backer Of Dunn & Co. and Dillon <
Co.
The main Office of Culver & Co. was
IN Philadelphia, and the firm had
branches here, in Pittsburgh. Steuben-
vile, Ohio; Brownsville, Pa, and an
other in West Virginia. The firm is
now bankrupt.
Culver was examined by Keyes
Winter, trustee in the bankruptcy OF
Dillon & Co, before Peter Il. Olney
Jr., referee. At the same hearing
F'ranklyn j. Ryan. formerly margin
clerk for Dillon & Co.. disclosed that
Richard c.. Guest, formerly sales man.
aCer for Dillon & Co., and who is un-
der Indictment for grand larceny II
that connection. now is a principal IN
the firm of Hauser & Co., stock
brokers.
Others Move With Ryan.
Ryan said slso that others formerly
with Dillon & Co. who now are con-
nected with Iauser & Co are himself.
as cashier, and Felix Weinberg, formerly
a. In no 80
house is Louis korey. formerly head OF
the now bankrupt stock broker firm of
<orey & Co.. hich carried a substan-
tial trading account with Dillon & CO.
w. b. vause law partner of State
Senator Loring Black. formerly at
torney for Dillon s. Co, appeared. but
asked that his examination be post
poned. Mr.. Winter said Mr.. Nause had
been under subpoena for some time
Mr.. Oluey ordered Mr.. Nause to appear
Tor examination this afternoon.
Culver testified that not only dc
Rabiner and kastcl own and contro
tho entire string OF Culver & Co
houses. but the business of those
houses was conducted by Rablner & Co
IN New York. the Culver houses merely
acting as agencies for the Rabinei
house. and Rabiner maintaining actua
direction of the Culver houses by direct
wire communication.
Furthermore. he said. control was
fixed by two signed agreements, under
which Rabiner and kastei were to re-
main as unseen factors in the Culver
business. and IL. which Culver and his
partner, Bertrs nd Barnett. cousin oi
Rabiner's. made affidavit that neithe
knew either Kostel or Rahiner or evei
had had anything to do with them.
Says Rabiner Approached Him.
Rabiner & Co. failed a month ago fol
between 10000 AMI 100000. Culver
testified that since RabincrS bank
ruptcy Rabiner had tried to prevail
upon him not 10 mention either him o
Kastel In event he were subpoenaed IL
the Dillon case
Mr.. Culver said he entered the Culve
& Co deal with Kastel and Rabine
ir good faith and after he found ou
the shape things were In tried TO saw
the business. finally getting out OF hi
own voIition.
He testified that he first met Kaste
end Daniel Dillon. ostensible head o
Dillon a. Co. while he was with Carpen
der. Caffrey & Co.. stock brokers. nov
bankrupt; that sometife between Apr
and July !, 1927. Charles Minton o
the Brokers Investigating Brroau.
commercial agency of 80 Broad roe.
introduced him TO the two TO estaDlis
business relations between Carpendei
Caffrey e. Co. AMI Dillon & Co. II
said Minton investigated Dillon & CT
ard gave them a good reputation. Tw
or three weeks after that. he SAID
Kastei offered TO back him as a stoc
broker In Philadelphia.
Culver agreed and Kastel introduce
him TO John McGilvuy. who deposite
$1,000 to Culver's credit In the Ameri
can Trust Company. Culver said hc toI
Kastel It probably would take 500
all told 10 get the business on its fee
and Kastel promised that he and McGil
vary would supply 10 on condition tina
their names not be known in connectio
with the business. He said Kastel ex
planned that McG,vary was a book
maker at the races and that IL woul
not do for IL to be known that he Al
McGilvA~y were tied up In such
business.
With one r. n. C'Paddy') Ryan. Gu
Yer went TO Philadelphia. where
said, Ryan got a seat on n Philade
phia exchange and they started bus
ness as Culver a. Co. about Septemhe
]. 1871. He not only got no more none,
he said. bu. in a few days Kastel boz
rowcd 5000 OF the original $1,000. sui
seouently paying back $4,000 In install
mcrts.
But in the latter part OF Septembs
kastcl came TO Culver and told hi'
Dillon 4 Co. had gone into bankruptc!
Dan Dillon had absconded with N
funds and he couldn't back him an
longer.
Culver testified that Barnett was "
flgurehead and didn't know what II wa
all about" and that Rabiner and kast,
were the real hackers and operator
Kastci he said. went on the road I
visit branch offices and Rabincr ra
tho business by a direct telephone wir
from Rabiner a. co. In New York {
Culver g. Co. In Philadelphia. All Gu,
toners orders we're sent TO Rabiner
Go. for execution. he said and all mai
gin and other payments from customer
also were forwarded 10 Rabiner. II
said he left the firm BY agreement Ma
81. 1922. and II later failed.
Culver waived rights OF client whic
might disbar testimony from Meyers an
production of the agreements.
DISABLED TO APPEAL ON NOV. 4