New-York tribune., 1922-05-10
Call StOnel,an
Silent Partner
In Dier Firm
"o {, testify in Bankruptcy
Tearing Employees Told
Them Giants Owner Was
Member of the Company
Branch Director Denies Il
"agna'c z; $ Attorney Explains
How He Sold Business and
Bought Back S2.4OO. 900

ha,I. Inc charge that Charles A. Stone
ma" nam owner of tho New York Giants
was named as a silent partner hv the
oranch office director in the collansod
pfoherage firm OF f. D. DER & Co in
az al 'Hort to prop up the failing con-
.'uvnce o. the local manager and Gus
1omers in Hagerstown. Md. was thc
.L''"Ie o tho testimony yesterday at
p""N rup'cy proceedings before
Street "co'or
,, ne manager from Hacerstown. Si]ae
f. Dubbcll, for many years postmastar
mere VINO received SIS week for his
.lonaEcrShip. also testified that tho
oFanch Office director, W. II Strata,
urcd hlm that he would vrrv soon
ma that T.. D. der & Co. was ono ~
,hc strongest firms in Wall Street. NOT
W'thStandinG tho withdrawal o. its
t'cNcr service by the Stock Exchance
S'ratton Denies Naming Stoneham
Nreo hours lstcr. after Stratton had
hufr1cd to New York from Phi)gdolnhia
yesterday IN response to long dis.
lance telephone call, and had denied
naming Stoncham as Dicr's silent
partner, Duhbcll rose from his chair
IN the hearing chamber and spoke out
aS II the proceedings were a town
meeting,
You certainly did make that state
mont TO nc, Mr.. Stratton," he said em.
phatically.
Leo J Bondy. attorney for Stoneham
also was witness He testified 70
transactions following Stoneham's -olc
OF his brokerage business to Dicr some
tlmc before the Si,00O0Oo failure. Of
Dler,5 S'oNncss in completing payment
ON about S5,o00,000 Of customers secur-
lt'cs involved in the transfer, and Of
the rcpurchasc by Stoncham Of nearly
half Of them.
Arthur Garfield Hayes, attorney for
tho receiver asked Bondy if Stoneham
mad obtained the customers consent to
the ropurchasc of about s2,4OO 900
worth Of securities.
Not that know or" Bondy an
sWcrcd, adding that Dior naturally had
the right to sell stock whenever GUS
toners were short in their margins.
Stratton's Alleged Explanation
Dubbcl] testified that hc had $780,
600 in accounts in his office when DER
& Co. tailed. Last July he wrote
to the firm TO find out how it stood
after it's trouble with thc Stock Ex-
change. Stratton, Dubhcll said, went
TO HagcrstoWn and explained that the
lIChei7 mao DeCn taken away from the
firm because Of The jealousy Of DOW
crful Wall Street brokers lie dccla red
that Senator Lusk was going to look
out for them, and that Dicr had bought
scat on the exchange himself
Dier did not intend, however, Dub
bell said Stratton told him, TO invite
further manifestations of cnmty from
his powerful cncmi cs. and so had made
special request to have tho exchange
delay until further notice his election
as a member.
"Tcll me. man fashion," Dubbcll
, testified he said to Stratton, as the
house sound 90
"Absolutcly." Stratton answered,
nubbcI's testimony continued "For-
get anything about our going into the
hands Of a receiver. MIR. Charles A.
Stonoham is our silent partner. You
est houses in Wall Street We Just cot
INTO jam on account Of the failure
Of Wagner & CO.. and some trouble
with bank in Chicago"
Dubboll further testified that STRAIT
ton had admitted some buckctinc of
orders in Philadelphia. but insisted
there had hccn mono in New York.
Stratton also on this visit made a
little speech in the customers room
at hagcrstown to rcassurc the in
vcst0rs.
Stratton denied any knowledge Of the
firms financial affairs. HIS official in
format ON about the firm came from
his supcrors, he said
Mrs. Elizabeth A. Clarke, OF 1914