New-York tribune., 1922-09-15
DIR. Hirsllherg.
Declines t(, Tell
Of Stock Deals
Partner in Bankrupt Firm
Declares His Testimony
Might Incrirnirlate Him;
Refuses to Reveal Assets
Fraud by Mail Charged
Partner, Winthrop Smith,
Also Out ON Bail, To Be
Examined ON Wednesday

DR.. Leonard X. Hirshberg, one of
tho partners of Winthrop Smith q
Co., operators of ''blind poolh for
trading In the stock market that went
into bankruptcy last Saturday, was
examined in bankruptcy proceedings
before Referee John ]. Townsend, 300
Broadway, yesterday afternoon.
DR.. Hirshberg refused to answer
many questions bearing upon the de-
tails of his business, declaring that to
do so would tend to incriminate him.
He also refused TO disclose the where
abonts of any safety deposit box or
bank account that he, his partner, or
his firm might have
DR.. Hirshberg was arrested on Sep
tember 8 and released in $4,000 bail
by United States Commissioner Hiteh-
cock, upon complaint charging the mis-
use of the mails In a scheme to de-
fraud. His partner, William Winthrop
Smith. was also sought by post office
inspectors, but was not caught until
the following Monday, when he sur
rendered to Assistant United States
Attorney John E. Joyce at the old
Post Office building. Smith was also
released in $4,000 beil. He will be
examined next Wednesday.
to4. ns'TdaE Wnsrso to sm sns 0 eG e'e a5s aspiSe
attempt to defraud by sending out cir
culars promising big profits. to inves-
tors through the operation of their
blind or discretionary pool for buying
and selling listed securities, in the
management of which the investors
were to have no voice.
Bankrupt September 0
The concern went into bankruptcy on
September Q upon the petition of three
creditors, who charged that certain
creditors were preferred over others.
David Kahn. attorney for the re-
ceiver, Thomas H. Matters jr., sub
jected Dr. Hirshberg to persistent
questioning at the hearing yesterday,
and upon the refusal of the witness to
answer turned to the referee and ex-
available for further questioning later
on, after the examination of various
witnesses, "and then you will under
stand his reason for failing to answer"
DR.. Hirshberg said that he had been
q practicing physician in Baltimore
when a patient named Bernard Can
non suggested that they go into the
stock brokerage business. They took
in with them John Marsich and Charles
Weinberg. The last two droped out.
DR.. Hirshberg and Smith came into
full possession of the establishment.
Refuses to Answer
Mr.. Kahn then attempted to obtain
answers to questions as to the conduct
of Winthrop Smith g. Co.'s business.
He asked in succession how they made
their profits, what orders they had ex-
ecuted for customers, if the so-called
profits sent to members Of the pool
were actually earned and if the books
ever were audited. To all of these
questions DR.. Hirshberg refused to re-
turn an answer.
DR.. Hishberg did say however, that
Smith refused to accept stock as col
lateral unless it was accompanied by
an order to sell, which answer would
seem to indicate that the firm may
possibly be found to have no stocks
in it's possession.
AS to the firms through whom Win
hrop Smith & Co. did business, DR..
Hirshberg gave the following list:
John Heffner, Farson g. Co., Zim-
norman G. Forshay, j. G. Rabiner &