Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-07-08
Dier Is COrnered
and BLaInes Friends
Continued from Page One
Of the game he possessed and we played
1t on the level all the way.
Hughes Grew Rich


Hughes grew rich and had plenty
when he retired following his expulsion
from the Philadelphia Stock Exchange
in May, 1921. This was blow from
which we never recovered. / fought
hard with my back to the wall. We
lost numerous accounts and I had to
virtually begin all over again. 1t was
losing fight, but am still convinced
that If my friends had stood behind me,
as l had in the past helped them,
could have come out safely.
when I look back at the many re
buffs / suffered, especially In Philadei- :
phia during the time ! was trying to
raise capital, it makes me sad. Three
weeks before the failure l tried to get
IN touch with Colonel Hughes. I went
to Philadelphia and remained three days
even talk to me on the telephone. Now
l hear he offers to give the receiver
500. 200.
''If he had let me have that amount
! could have put our firm on its feet.
Hughes, however. is not the only one
who faltered when the crucial test came.
There are plenty others, but what is the
use of dragging them in? They were
tried and found wanting when the test
came. Maybe some day they may have
regrets.
Concerning the testimony that was
brought out during the hearing before
the referee in bankruptcy, let me say
that the statements made by Fred An.
drews, my erstwhile cashier, Gaines and
others are pack of lies. It makes me
smile to think how suavely those birds
passed the buck.
Imagine me being charged with hav-
ing taken down almost $40O, 900 a year
from our firm. That is all rot. OF
course, l drew down enough to live OIL
and l want it understood that anything
l drew went back and more with it..
of course we had very large overhead,
but 1t wasn't any more than other brok-
erage houses as large as we were. Bear
IN mind that we had a big force and
several Offices and naturally our ex-
pcnscs were high.
Knew Nothing Of Business
Andrews, in his stories to the ref.
cree, said / told him to do this and
that. l never did. l employed Andrews
to take charge of the cage. He was
well paid. l was simply the organizer.
! had men to look after the brokerage
end, men Of experience. and to those
men fell the responsibilities of taking
charge of our accounts.
II admit that knew absolutely
nothing about the brokerage business
and still admit it. 1t was nv orders
and understanding that all securities
put up by our customers were either
carried IN our box in the bank as COL
lateral for loans or with the brokers
with whom we did business. | never
authorized the sale of any securities
held for our customers and if it was
done it was without my knowledge.
What about the charge of bucket.
ing on which you were indicted?" Dier
was asked.
IF any orders were bucketed II was
done without my knowledge. Nv Or
ders were to execute all orders promptly
and think an examination of our books
VIII show that we sent all of our orders
through legitimate houses"
Ihe accountant who examined YOUR
books says every order received by your
firm for two months prior to your fail.
ure was bucketed and that before that
period 1t was a general practice to put
through 'offset' orders, that is TO buy
rs directed by n customer, but to i'm
medlately sell and use the money thus
realized to keep the business going"
III that was done ! knew nothing
about It. Andrews and Shrimpton knew
my orders were to be on the level. md
{ they pulled off any funny business
you bet the Doctor did not know II
] believe that at the right
line ! Will be able to show lust how
was. kicked around like football
md when the showdown came II was
simply a matter of passing the buck to
Doc DER. "
However, Doc Dier does NOT in.
end to be the goat In this matter n
'ome one pulled off acts of criminalitv
no should be prosecuted to the Iimit
or it. ! reiterate that | never oms
horized any Of my employees 70 com
nit an unlawful act. 1t wasn't neces.
nry because II we had sufficient finan.
ial support we could have weathered
he storm easily.
Doc der Is going to get busy now
lie has had his eyes opened bv rho
and now knows how ho
vas used in the buck passing game onS
Intends that the whole story Of how
10 was robbed from the inside shaI,
'e told in full. Doc Dier does NOT in'
end to sit on the sidelines and TAXA
he blame for acts Of which ho had
absolutely no knowledge. lie intcnds
o make those responsible come out in
he open and fight fair" ~
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