The New York herald., 1922-06-07
Prosecutor Calls on Customers
to Give Account Of Their
Deals With Firm.
BROKERS OFFICES SOLD
Livingston Held in $1,000 on
Charge Like One Against
C. A. StOneham.

Examination of the books Of the
bankrupt brokerage Of E. d. DER &
Co. caused the District Attorneys Of
fice yesterday to request 100 former
customers to supply detailed accounts
Of their transactions with the firm.
Manfred w. Enrich. trustee in bank
ruptcy for der & Co., increased it's
assets when he sold the seven story
building owned and occupied in part
by the firm at AZ and Al New street.
The price was said to have been nearly
100000, but the amount of the Dier
equity was not made known. The pur-
chaser was Frederick Brown, well
known realty operator. Hughes &
DER, predecessors of E. D. DER & Co..
bought the building July 1, 1919. for
s200.oOo. and then spent obout s15o.O0o
IN rebuilding and modernizing it.
Ferdinand Pecora, Acting District
Attorney. indicated that knowledge of
vital Importance to the prosecutor had
been obtained from the records in the
New street building. He said:
"The examination of the books. so
far as it has progressed, invites the
closest possible scrutiny by the Dis
trict Attorney"
Mr.. Pecora would not say II the books
contained enough data to present the
case to Grand Jury for indictment on
charge of grand larceny for bucket
ing customers orders.
Books show $500 Orders.
In none Of the many other bucket shop
cases before the District Attorney has
so great number OF persons been called
on TO supply information preparatory to
presentation to the Grand Jury.
The inspection OF the books by Benja-
min f. Schneider and Joseph McLaugh-
lin, an accountant, is being conducted
with view to determining how many Of
the orders placed with the stock firm
actually were executed.
Mr.. Pecora pointed out that the ex-
animation of single ledger showed that
orders to buy and sell securities. aggre-
eating more than s2.000.000. had been
placed by customers between November
were a total of $500 orders listed.
The $50 books of the concern, with
Liabilities of S4.000.000 and assets OF
only 100000. still are at the former Of
fees at AZ New street MIR. Schneider 10
making his examination there and is be-
ing assisted by Bernard j. Refs. chief
! accountant for the trustees In bank
ruptcy who has had access to the rec
ords since theSfailure last January.
Held In Case Like Stoneham's.
Samuel NJ. Livingston of AZ Gramercy
Park. former president of the brokerage
of S. Nj. Livingston & Co.. Inc, As Will
lam street. waS held in $1,000 bail by
Magistrate Marsh In Tombs Court for
trial in Special Sessions.
The broker was charged with viola
tion of section 957 of the penal law In
that he did not furnish statement
OF brokerage transactions when de-
manded by a customer. This Is the
second complaint of this nature made
recently. a similar case being pending
against Charles A. Stoneham. broker.
who sold out TO the DER interests.
L The complainant against Livingston Is
G.. @. Gelormini. a tailor, of "A Peabody
place. Newark who alleged he opened an
account with the firm last December.
deposited s370 for marginal transact
tions and failed to receive profits due
to him o. any information of the stock
purchases.