The New York herald., 1922-05-09
CALLS ON STONEHAM
OCIVE BACK STOCK
Lawyer Says Illinois Client
Claims 800 Shares of
Studebaker.
EQUITY PUT AT $+5,642
Dier Managers to Tell How
Creditors Were Re-
assured.
BANTON FIGHT RENEWED
District Attorneys Attempt to
Get Books Up Again To-
morrow.

Daniel w Blumenthal. a lawyer foi
creditors Of. the bankrupt f. d. Dier
& Co. brokerage, announced yester-
lumber dealer. of McLeansboro. ILL.,
he had made demand on Charles A
Stoneham and Ross F. Robertson, for
mer partners in Charles A. Stoneham
4 Co, for 500 shares of Studebaker
stock
Blumenthal threatened to sue Stone
ham and Robertson for s45.642 IL his
demand was not met. He said Wilson
in an affidavit had sworn that he re-
fused 70 allow the Stoneham firm to
transfer his account TO r. D. DER &
Co when the latter bought out the
former. Wilson asserted he paid
500 20 the stoneham house in
March. 1921.
Another hearing in the s4,ooo.oOo Dier
bankruptcy will take .,ace this after
noon before Seaman Miller. referee. at, 2
Rector street. 1t Is expected that w.
H. Stratton. a Dier manager, will be
asked to tell of his operations in out of
town districts preceding the failure last
January.
Another witness will be Silas Dubbel,
who handled nearly 100000 of stock
for Dier customers in eastern Pennsyl-
vanie. who Is to tell what he knows OF
the efforts to stave of failure and OF
alleged assurances by Stratton that the
Dior firm was solvent. Other witnesses
are expected to furnish some disclosures
on what became of the Der assets.
Letters received by attorneys for the
receiver. Manfred W. Enrich. have al
legged that Dier sent various emissaries
TO the outlying districts to reassure cus-
toners who had become anxious when
the tickers were ripped out of the Dier
Offices. 1t has been charged that the
name Of Stoneham was used to convince
customers that the firm was financially
solid
Creditors OF the insolvent DER firm
have expressed their unwillingness to
accept the 100000 offer OF Mr.. Stone
ham, and feel that the transfer Of his
accounts to the Dier nrm should be in
vestiEated thoroughly. Attorneys for
the receiver. however have made 1t clear
that they believe there is little claim
which the creditors can make on Mr..
Stoneham.
Nash lockwood. counsel for l.. y.
Dier & Co, viii go before Judge Learned
Hand in United States District Court
on Thursday to fisht the turning over
OF the books OF the Arm to District At
torney Banton.
On April 10 Judge Hand ruled that
the District Attorney should have ac-
cess to the books. but he granted a stay
of thirty days pending an appea; to the
United States Supreme Court. This
period of srace expires tomorrow. Mr..
lockwood has procured from Judge
Hand an order 10 show cause on Thurs
day why the stay should not be con-
tinued The Supreme Court has not
acted on the oppeal.
Mr.. lockwood said he will apply to
the Supreme Court naxt week to have
the bearing on the appeal hastened.
Mr.. Bantou will join in this petition.
Mr.. Banton has expressed himself as
particularly anxious to inspect the books
of the Dier firm because OF the import
ance OF that case and because the ruling
of the Supreme Court. IL favorable TO
him, will set precedent that will en-
able him readily to seize the books OF
ether defunct concerns against which
complaints have been received.