The New York herald., 1922-05-27
S12S,OOO MISSING
IN DER STOCK SALE
Andrews, Cashier, His Son and
SOn-in-law Are Flippant in
Explaining Entries.
OFFICE BOY GOT 1000
'Blackmail' Talk in Reply to
Queries About Doubtful
Items of Expense.
OFFICE BOY GOT SAL, 900

According to testimony brought out
yesterday before Referee Seaman Miller
! SLIPS, 900 in securities was transferred
from E. D. Dier & Co. to Fred An
drews, formerly office manager. osten-
sibly as collateral for loans but actu-
ally for sale To offset these transfers
the firm received approximately $1,000
600 from Andrews. which left $4,000 to
be accounted for The attorney for the
receiver also tried to show that $4,000
worth of checks, the stubs of them bear
ing the name of Andrews or his son-in-
law. August Stroh, had been cashed by
an office boy and the cash not accounted
for.
Stroh testified during the morning
that he had charge OF sending securities
to Andrews. The securities received
from customers, he said. were sent TO
Andrews with instructions to sell. ana
that Andrews made rc accounting TO
DER & Co. of the prices at which they
were sold. He knew they were securi-
ties belonging to customers. he said'
and he knew that at least In some In
stances the firm had no orders to sell
them.
Arthur G. Hays. attorney for the re-
ceiver. also tried to snow that the firm
had a system by which accounts OF
sales on the books of the firm were
kept open during tine day and II the
transactions proved successful were
charged to Andrews or his wife. but II
they were not successful the name OF
customer was writte> In.
Andrews Questioned Again.
Andrews was questioned at length re-
garding his part in the various trans
actions made by the firm and members
thereof during the year preceding the
bankruptcy. References to the activities
said to have been made by Senator
Clayton r. Lusk on behalf OF the DER
firm, for the reinstatement of the firms
ticker service. and the details regard
ing a loan of 100000 arranged by
Andrews for. DER were parts of the all
day hearing.
Andrews and his son, Bernard d.
Andrews, who was arrested at the close
OF Thursdays hearing, charged with as
saulting Frank Block. an aged creditor
of the Dier firm, and held in $500 bail
Yesterday by Magistrate Simpson in the
Tombs Court. were questioned for sew
eral hours.
Various items of several hundred dol
lars each. some charged to cigars and
others to expenses and to Andrews's
7 n L. ~As
and Andrews either gave a vague ex-
planation or made some joke about tho
Item He was reminded that the mat
ter was a most serious one, and re-
piled:
After yesterdays hearing l knew it..
have been all upset by the affair and
can't remember all the things you ask
me- 1t has been very trying to me y
This was In reference to the fight par
ticipated in by his son and himself and
Block in the corridor outside the hear
ing room.
Questioned with reference to an ag-
gregate amount of S29.651.5S, which
from December 6. 1920. to January 16,
1921, was charged to Andrews's account
as petty cash. mostly expenses An
drews said:
"A lot of il was for blackmail"
by whom?" asked Mr. Hays.
! by lot of people, replied Andrews.
,"I remember when they (Dier & CO..
were out of the newspapers in adver-
Using. We were held up by three news
papers for $4,000 before We could get
back again. That was about the end
of 1921
You mean 1920, don't your asked
Mr.. Hays. Andrews left the DER frm
and went to Europe in 1921. returning
some months before the failure.
yes. that was 1920"
ITO whom did you pay this black
mal?'' asked Mr.. Hays. Andrews hes
itated a minute, and then said:
We'll. j didn't pay 1t. George Gum.
our advertising man, made arrange
ments with THE NEW YORK HERALD
the Times and another newspaper. to
pay a certain amount OF money, other
wise they couldn't get their advertising
In the papers / saw DER give them
the representatives of the papers-the
money" Here the questioning turned
to other matters.
PuzxIing Entries I'm Books.
Bernard Andrews son of Dier's man.
ager, was called to the stand and asked
to explain the entries made by him in
/ the DER books with reference to the
s166. 900 worth of securities which were
given as collateral for q loan Of 100000
made to Dier by the Seaboard National
Bank. This loan later was taken ur
by Andrews senior. who paid for the
/ securities with a check Of Lynch &
McDermott. and according to Andrews
the stocks were sold through them. De
spite this the stocks appeared entered
on the Dier books and placed to tho
account OF ~. Lawrence" which account
was said to be fictitious or house ac
count.
Young Andrews, who testified he re
| ceived 800 a week, and was n clerk
| admitted that he had entered the Sc
curlties on that account at the express
orders of a member Df the firm, and
said that he merely took orders ant
didn't question them. The loan hac
been made by the bank and on Decem
ber 70 the securities placed with then
az collateral were turned over TO DER
Nothing appeared on the Dier book
until January u. four days before th'
failure when the entry crediting th'
securities TO ~ Lawrence" was mad
IN Bernard Andrews's handwriting
Young Andrews emiled and joked as Mr.
Hays questioned him and was reminded
of the fact that thousands had lost thei
savings by the methods employed by th'
brokerage house.
THE NEW YORK HERALD