The New York herald., 1922-09-07
Lilly Can't See Why Raiders
Found Only $4,000 in
Strong Box.
re SUE IN DILLON CASE
District Attorney Plans Buck.
eting and Larceny Actions
Against Firm.

]. Frank Lilly of J. Frank Lilly &
Co., stock brokers. who failed for ST.
100000 in 1919, and who was acquitted
last March of culpability in connec-
ton with the failure. was examined
YESTERDAY before Seaman Miller, ref
cree in bankruptcy. ON behalf of a
committee OF creditors who are seek
ing TO trace the assets. Prior to his
trial, for which he was produced by
his lawyer, Barnard III. Sander, Lilly
had been a fugitive from justice.
The attorney charged that s47o,0
worth of securities had disappeared
from a strong box belonging to Lilly.
and although there were more than n
half million dollars worth OF securities
in his possession when he went away
on a fishing trip the trustee in bank
ruptcy was able to discover only
$50, 900.
'Some time after Lilly went away"
said Mr.. Sander. "a raid was instituted
by the District Attorneys office and
everything in Lillys office was taken
examined to-day by Archibald Palmer
attorney for the trustee in bankruptcy
that some time in June, 1919, before
the account was attached by Josephthal
& Co.. there was in the strong box
over half a million dollars. at least
100000 OF which was in Liberty bonds
and other gilt edged securities"
ItlIv GnnIA Nnf EyxnInsu
Lilly declared on the stand that he
was surprised to learn that the assets
discovered amounted TO only $4,000. lie
said he could not explain the loss OF the
securities. and was willing to help in
any way he could to find them. Sander
added that 100000 worth OF the securi-
ties left in the strong box had matured
but no attempt had ever been made TO
collect their value.
Lilly was professor OF psychology
In the University OF Chicago before he
went into Wall Street and Is now asso-
ciated In business with former Gov.
Ashland Of oklahoma.
Ljlly's examination will be resumed
October 6.
The District Attorneys office prepared
yesterday to take action against per-
sons connected with the bankrupt stock
broker firm of Dillon & Co. whose
liabilities were shown last week TO be
about $300, 600, with virtually no assets.
Benjamin II. Schreibcr Assistant Dis
trict Attorney IN charge OF bucket shop
prosecutions, made n request upon Keyes
Winter. 80 Broad street, for the books
OF the company for examination. Mr..
Winter expects to complete his use OF
the books in connection with bankruptcy
proceedings within the next two or three
weeks.
Hearing IL Postponed.
Yesterdays hearing in the Dillon case
before Referee Peter Il. Olney, Jr.. was
postponed until tomorrow pending SUBJ
p1naing OF important witnesses.
There arc pending before the District
Attorney about ten complaints against
Dillon & Co. and persons connected with
that concern The complaints include
allegations Of bucketing and larceny.
The complaints against Dillon & Co.,
who are alleged TO have been backed
by Dandy PHIL Sastel. who was mem
toned frequently in the "Sicky" Arm
stein case, and whose ostensible head
was Daniel Dillon, are regarded as of
great Importance. There Is said to be
reason TO believe that examination into
the case may show a trail leading TO
the brains" Of n ring OF bucket shops.
Mr.. Schreiber believes that when this
ring Is disclosed and its heads are ap-
pretended II will show a startling
scheme Of systematic Fleeing of GUS
toners through a Succession Of cooper
ating brokers. There Is reason 10 be-
lieve that a connection between some of
the alleged bucket shops OF this ring
and the Arnstein case may also be found.
MIR COLLIER HACK IN CHILE