The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-09-28
DANDY PHIL KASTEL'S
WOMAN SECRETARY
Held AS BUCKETEER
Ruth Smith, Daughter Of
Fire Captain, Arrested
in Brooklyn.
FOUR OTHERS INDICTED
Jury in Fonda, n. Y. Acts
on Charges Made Here
a Year Ago.
NO ACTION WAS TAKEN
Kastel Among Those in Dillon
Co. Accused on S., 565
Check Deal.

Lewis Hartigan, Chief of Police oil
Fonda, y. ", and Detective Grattanc
Of Brooklyn last night arrested
Ruth Smith. formerly secretary OF
Dandy Phil" Kastel, alleged hacker
of Dillon & Co.. stock brokers. who
failed last year for 100000.
She was locked up in Brooklyn pend
ing removal to Fonda, in Montgomery
county. where she has been indicted
with four others of Dillon & Co, upor
a charge of grand larceny in the first
degree
The others indicted are:
Dandy PHIL Kastcl, who distin
guished himself last year during the
Nicky Arnstein bond robbery case in
connection with which he was alleged tt
be wanted" by walking into the Dis.
trict Attorneys Office and Offering e
have himself arrested and who latterly
has gained notoriety through the allega-
ton Of Keyes Winter. trustee in the
Dillon bankruptcy, that Kastel ennis
sary offered him a fee" to stop pub
lcity In the Dillon case and informed
him that Kastel was not afraid of the
District Attorney"
Richard c. Guest. alleged to have been
drawing partner with Kastel in Dill
lon & Co.
Edward n. Post, formerly cashier oil
Dillon & Co.
Augustus Toohill, formerly a custom
ers' man for Dillon Co.
Detectives searched the city last
night for the remaining four under in
dictment. but could not find them
Toohill Is out on bail already under
indictment in Montgomery for larceny
in connection with Dillon & Co., but
under a separate complaint.
Miss Smith is a daughter OF Capt
John Smith of tho marine division Of tn,
New York Fire Department and lives al
her fathers home, 457 Third street
Brooklyn. She was arrested there
Her father endeavored to obtain hei
release, but without avail. She was
locked UP at the Poplar street headquar-
tiers.
The complaint upon which the present
indictments were found was brought
by Fay Shaul. music store proprietor
of Amsterdam. y. Y. and was pre-.
sented to the Grand Jury by Newton
T. Herrick, Montgomery District Attor-
ney.
SnHups story.
The indictments IN Montgomery county
are based upon complaint made to the
District Attorney of New York county q
year ago next week. but upon which
according to the complainant, no action
ever was taken.
Mr.. Shaul said that he gave an order
TO Dillon g. Co. for the purchase OF 100
shares OF United Drug stock at $500
and sent that firm a check for the full
amount. including commission. He said
that after some delay he undertook 20
obtain the stock from Dillon & Co. and
was never able to get either the stock OF
his money. The best he could do. he
said, was to get statement from Daniel
Dillon. who is alleged to have been a
figurehead running the business for
Kastel, that he could do nothing about
it until he saw Kastel.
From Kastel. Mr. Shaul declared. he
got expressions Of regret that he could
not help him until hc saw Dillon.
Finally. when he caught both Dillon
and Katsel in the office. Mr.. Shaul
said, he was informed that an unfort-
innate circumstance had arisen in that
the stock was locked in the firms
strong box and the man who carried
the keys had just left the office.
Mr.. Shaul said he went to the District
Attorney Of New York County on Octo-
Der 4, 1871. and made a complaint Of
grand larceny of $3.50 against Katsel
On the same day. he added. he went
before the Grand Jury and testified
in support of his complaint.
After tessifying before the Grand Jury
he said he left with one of the assistant
District Attorneys the Cancelled check
for 1866 he had paid for the stock.
along with correspondence between h.m-
self and Dillon & Co. and such other
documentary evidence as he had.
Mr.. Shaul said he asked Joab *. Ban
ton, present District Attorney. about his
case and was surprised to hear that Mr.
Banton could find neither a record of
Mr.. Shaurs having appeared before the
Grand Jury nor any OF the documents.
Later. however. Mr.. Banton found tho
check and letters and at the request OF
Mr.. Shaul returned them to him.
These documents, Mr. Shaul stated.
we're used as evidence before the Grand
Jury which handed up the present In
dictments and were used as the basis
of those indictments.
The Jurisdiction Question.
To gain jurisdiction OF the case the
Montgomery authorities were compelled
to base the case upon technically,
which, IL sustained. will prove an ef-
fective remedy IN similar cases.
Kastel and Dillon & Co. having their
headquarters In New York and conduct
ing their stock transactions here,
Il might be assumed that jurisdiction lay
in New York county
Mr.. Shaul. however. gave TO Dillon 4
Co. paper ordering bank at AM
sterdam TO pay 1886. and when that
paper was presented TO the bank at Am
sterdam that institution ordered a bank
In New York to place that amount to
the credit OF the brokers. iastel and
Dillon & Co. then got tho money from
the bank In New York. and, Il appears,
actually bought the stock, presenting
Mr. shaui with confirmation OF the
purchase. The allegation is that the
Continued on Page Seven.