The New York herald., 1922-05-26


essarily" owe the money to the firm. II
the check had been used to pay pre-
MUM on his insurance.
Recalls That He Doesn't Know.
A check for $4,000 drawn May II,
| 1921, caused lot of trouble. Andrews
said he did not know what 1t was for.
He volunteered that he thought he had
an idea and then thought better of 1t.
II have recollection. but my recollec-
ton Is that l don't know" he replied
when prodded by Mr.. Hays.
May IL. 1921. there was another check
to Andrews that he couldn't explain. 1t
was for $1,000, and he said he probably
gave 1t to Dier" Nor could the witness
explain check for $4,000 drawn April
1, 1921.
You didn't receive presents Of $780, 900
or $4,000. did you?" asked Mr.. Hays.
II may have"
DO you mean to say that Hughes &
Dier-?"
I'm not talking of Hughes Dier."
'"Well, then. from whom?"
"Others"
"Whom?"
Names Brokers Who Made Gifts.
The witness refused to answer and
was in for possible contempt proceed
ing. but finally agreed to tell. He insist
! ed his refusal was not because to answer
would "incriminate and degrade him"
Then he gave a list Of brokers which in
cluded Jack Schneck, B. H. Rosaler, Sam
Aber. Frank McQuade, William Hoff-
| man. Frank Herman and Alec Herman.
How much did Herman give you?"
II couldn't tell''
Fifty thousand dollars?'
mo"
Twenty-Five thousand dollars?"
Cant tell
Finally he said 1t was somewhere
between cents and something else"
and that he devoted the money to his
own purposes" He got all the pres
ents in cash and he was unable to tell
the amount of any of them. None came
from Stock Exchange houses, lie was
sure. but one Stock Exchange house had
given him gold knife one Christmas
| and gold pencil the next.
when did they give you these gifts 2"
Whenever they felt like it."
| You didn't demand them?"
Certainly not; I'm no blackmailer."
"Levy Brothers Not Liberal"
Just why he got the presents was not
made clear, as he asserted that he did
not control the giving out Of business;
| that was done by Shri:npton He did.
however. advise that DER stop doing
business with one house, and his ad-
vice was followed. 1t was from Schneck
that he got more than from any one
else" and he was positive he never re-
| ceived a gift from Carpenter, Caffrey
& Co., the New York Stock Exchange
house suspended for doing business with
| DER.
Ibid you ever get any money from
Levy Brothers."
you don't know Levy Brothers"
| said the witness.
\, Returning to the matter of checks,
payable to himself. Mr.. Hays produced
four. for 81. .000 $3.50. 81. 900 and s2Ss. The
witness said he couldn't tell what they
were for. He was sure he had had a
right to draw them as he never drew
checks without authorization. They
were charged to expense or 'sus-
pense". and he knew nothing further.
Thought Business Legitimate.
Likewise 1t was not Andrews busi-
ness to know. he said. that the firm
was spending 100000 a year. He be-
| lieved the partners were rich and that
the business was egitimate-otherwise
he would have resigned.
Another check for 1855 was added to
the list and then Mr.. Hays sought to
find out how 1t was that Andrews had
mads more than $4,000 in less than two
months on his put and call account
with the firm. at no expense to himself.
while the records showed that the firm
was losing money on Its own put and
l. call account. Andrews said:
"If I drew that money out OF that
account 1t was my money; l got 1t ana
/ kept It."
a. ov,1
also drawn to his order. went without
explanation. Then carne one for s125
and the witness noticed that 1t was
drawn on June 25, 1890.
Possibly a present On my birthday.
said the witness.
IT suppose you realize that the $4,000
was given you for the same birthday"
said Mr. Hays.
Got More Than $4,000 In once.
Altogether the total Of money paid to
Andrews. according to the testimony,
was more than $4,000. not taking into
account the presentn re received from
outside.
Andrews's son-in-law. Stroh, testified
chiefly about S4.500 which he said was
Andrews's salary OF 5000 week. while
he was absent from the country and
which the witness kept In the petty
cash box. Money was drawn from this
sum. but he did not know how or why.
He had teen receiving 1900 a week as
bookkeeper but no check was kept on
him and there was nothing to prevent
him. had he been SC inclined. taking
securities from the firms strong box
and putting them In Andrews's security
box. He knew that certain securities
had Been sent to Andrews with instruc-
tion to sell, but he did not know that
they we're customers cccurities, he said.
y A statement read by Saul s. Myers
explained that the bringing of the names
of Stock Exchange houses into the case
did not mean that These firms had been
in any way connected with the bucketing
business of DER or that they were
cogniza,,s Of 1t. An exception was made
In the case of Carpenter Caffry Co.
The hearing will go on at II o'clock
this morning.