New-York tribune., 1922-06-26
Sue Tomorrow
For S5OO,OOO
OF Dier Assets
.aorneys for Receiver to
Begin Independent Ac-
lion to Recover Funds
for Benefit of Creditors
Obtain Mrs. Dier's Jewels
r,rpender, Godfrey & Co. and
Bell & Co. Are Among De-
fendanis To BE Named

,..,gr Garfield Hays ard Saul s.
-, attorneys for the receiver OF
Atunct stock brokerage firm Of
=, der & Co.. who have been FOR
-, pas, patiently undoing the in
-. financial crocheting done by the
.ra long time before It's custom
" .,,..s In upon IL with bankruptcy
c..sincs. vii take court action to-
49, looking 90 the recovery OF
~. ss00 600 OF scattered assets. The
,,..,rs before the referee IN bank
--.,v vii continue. but in the mean
- enough evidence has been OBJ
- q warrant submitting 70 the
-. srhedulc Of proposed rccovcries.
rv,ry stock Exchange house that re-
- a., o. the money Of T. y. Dicr
~. 81. Myers said yesterday. will
!, usea 70 pay it back and suit for
...'~,,y Will be fled What firms are
.-,t u the papers 20 be fled counsel
y -. wish 20 state yesterday. beyond
.,-,-der. Cafrev & Co, who also are
'hr.fuptcy and have been expelled
f..- fhs Stock Exchange. and Bell &
+, q Philadelphia and New York.
r,,pender. Caiirey q Co. are said 10
.,, made si50.OO0 during the year be-
h. tie failure In their dealings with
,,,k Co.. while Bell & Co. are said
T, k,v, made about 100000.
Mrs. Dier's Jewels Included
,,.,uded In the schedule Of proposed
y-enen;s are Mrs. D.er's jewels. as
. which an agreement has been
..,,s.d with the receivers attorneys
:, Y.eca o. the collection is said 20
,,pesri necklace worth $4,000, which
-, % have been & barometer Of incrc-
-; for the Diers. with a fine pearl 20
!. ,SStd 20 % each year Part Of this
rr,c,.on. Il was testified By +. Frank
(. Cs.nes. caller Dier's most confden-
nj employee. az a private hearing on
,.,, the dentist-broker carried
r,.rd with him for time after the
h.'e.
T,er, also will be added 20 the as
~, soon. IL is expected. an item Of
i.ou. $4,000 representing the value
= he stock In the 42 New Street Cor
.,rt,ior. which 10 took the receiver
i-orrsys some time 20 locate. This
co,k. j. appeared from testimony given
,7 Canes a. the private hearing. was
,,,s By der 10 Charles J. Eisenlohr,
4 Philadelphia. a few hours after the
-.s.yer had been appointed. The cor
yn,ion owns the building in which
..r ( Co. had It's Offices.
70 copy Of the testimony taken at
es June hearing had reached the
,ssvers attorneys yesterday, but Mr.
Yysfs said that Gaines testified 70 the
Allowing:
Whsn the failure occurred. on Janu-
IN is. DER sent Gaines 20 Philadel-
,.I Nth the 42 New Street Corpora
nss s.oek 70 place IT in the hands OF
Em.ohr. he reached Philadelphia
"a: afternoon. Eisenlohr would not
axe the stock until he had obtained
sfsl advice. He talked 20 his lawyers
,Tsi the telephone and in the end took
~ stock Il was supposed to repre-
"; security for a debt.
lhs attorneys pressed Gaines hard
.r details Of this transaction and the
v,,ss finally gave Il as his per
wal opinion that Dier was putting
rs stock into Eisenlohr's hands so
v:sn need arose he could have sure
e.re from which 10 borrow addi-
.srsl funds.
! think il was quite plainly an at
''-pi TO plant the stock" the witness
tit.
80 that Dier conceived the plan Of
buoving $4,000 from Eisenlohr and
gvng him this stock as security 2
'ostssl asked. The stock was sup
'ossdly put up" Gaines answered, TO
Iscure prior loans Of $4,000 and
20 oooo," continuing that he told Eisen-
ohr this was his last chance 70 protect
himself.
The 100000 worth Of business Bell
Co. did with Hughes & DER must
ave given Walter Humphreys, head OF
ssll & Co. thought enough Of DER 20
g.rs kind Of business. Gaines said.
Bel 4 Co. though enough Of der 70
ntEs him present OF some Liberty
bonds Gaines said he believed there
vn an understanding between Hum
'.i'ys ard der, but he did not know
'hti u was. Al any rate the Bell con-
e'r executed cross sales" for DER
umrg sales being somewhat differ
'ri from plain bucketing.
u an order 20 buy 100 shares were
If'.r By Disr & Co. and then in a few
fngiss AZ order 70 sell. that was
loU sale or q trade against the
's;'ner's account, Gaines explained.
| resulted IN the frm indulging In
rs ss;i Of trading being left at the
lsr' q ,he day with not much stock on
t.'t. Bell & Cos commission on each
IV9',ile trade vas $50.
AlLs! L Hurhes & DER bad been