The New York herald., 1922-03-21
der IN CONTEMPT;
ARREST DEMANDED
StOneham's Testimony in
Bankruptcy Case Is
Released.
CREDITORS INCENSED
Denounce Head of Defunct
Brokerage as Swindler
and Thief.
TRANSFER DEAL SHOWN
Baseball Man Sold So, $780, 200
in Securities for 81. 200, 900
on Buyers Word.
TRANSFER DEAL SHOWN


Stoneham, owner. of the New York
Giants, in connection with the failure
of the brokerage firm of +. d. DER &
Co., was released yesterday by Man.
fred w. Enrich. receiver. after having
been withheld since February 22, when
it was taken at the New York Bar
Association.
The testimony discloses the details
of the transfer of Stoneham's busi-
ness TO the Dier house. and was made
public after a stormy meeting Of cred
itors at the Offices Of the referee, Sea-
man Miller, at Rector street.
Elmore D.. Dier, head of the broker
age, was adjudged in contempt for
failure TO appear at this meeting, and
an order calling for warrant for his
arrest was issued.
Nash lockwood. attorney for Mr..
Dier, pleaded with more than seventy
five creditors to withhold judgment OF
his client. and promised that a pay
made by Mr.. Dier. providing 'plan.
would not disclose was successfully engi.
neered by his client.
DER Called SwindIer.
IL is understood that this plan" calls
for the creditors accepting a small pay
ment In cash and stock in mining prop
ositions In Mexico for the balance. Cries
of derision and anger greeted Mr.. Rock
wood when he asked that Mr.. Dier
should not be termed "swindler.'
HE is He is He is thief and a
swindler of the worst kind - was shouted
back at him, and screamed by many OF
the women creditors. Mr.. lockwood
promised to have his client at the Of
fices Of the referee at IL o'clock Friday
morning. where Dier will be questioned
at length regarding many transactions
OF both a business and personal nature
including his lavish gifts of jewelry, furs
and art objects to his wife.
That Mr.. Stonehasa. in transferring
the accounts OF his brokerage to n. d.
Dier e. Co. made no investigation of the
financial status of the latter, but took
the word of Elmore ID. Dier that he was
personally worth several million" was
admitted by the baseball man under ex-
animation by Arthur G.. Hays. Dier &
Co also bought the customers lists and
cards and good will of the Stoneham
business for 100000 and expenses.
which Mr.. Stoneham said were at least
100000 more These expenses were in
Cured In the running of Stoneham's
business until such time as the disposal
OF all Of the securities belonging to his
customers had been completed. which he
testified continued for several months.
II was brought out I'm the testimony
that Mr.. Stoneham and Mr.. Dier had
bitter words on more than one COCA
sian regarding tho slowness with which
Dier took over the Stoneham accounts
and Mr.. Stoneham admitted in several
places that he and Dier had had serious
differences regarding their deal.
Many Creditors Excluded.
The meeting In Seaman Miller's Offices
was attended by many creditors from the
middle West. Quite few we're unable
to crowd into the rooms. Creditors stood
on chairs and desks. and at intervals
were 50 loud in their demand for Mr..
Dier shd in expressing their opinion OF
the "swindle" that the referee had dim
Guilty in keeping order After the meet :
idg three overflow meetings OF creditors
were held and decision to fight the
proposed settlement reached. The three
groups will hold a mass meeting al
Bryant Hall on March 20.
The Miller meeting was opened by
Saul s. Myers. attorney for the receiver.
who, after reviewing the work done so
far. denounced Dier as a swindler amid
the cheers of the sssemblage.
Mr.. Myers attacked Daniel w. Blum
enthal for his activities on behalf OF
certain creditors. saying that he had
opposed the work of the receiver and
I.1 f,.x- xts.l.- A.
the entire affair. He then asserted that
he felt that the settlement of 500, 900
offered by Mr. Stoneham should be ac-
cepted as very good offer" and
''unhesitatingly recommended to the
creditors and the court, that acceptance
Of Mr.. stoneham's offer be made"
Mr.. Enrich told the creditors OF the
amount of cash in hand and of the
settlement plan and said Mr.. Stoneham
would give the 100000 Ito get rid of
the nuisance of the whole matter" Mr.
Enrich urged that the offer be accepted
In lieu of suing Mr.. Stoneham. When
Mr. lockwood stood up 20 ask that the
creditors withhold judgment the uproar
broke out. He finally managed TO say
that the creditors would get 100 cents
on tho dollar by the "pian' which Mr..
Dier Is working on.
Mr.. lockwood asserted that Ave
months before the failure T.. ID. Dier
had placed more than 100000 OF hts
own money into the business. He has
nothing now" he continued. "and would
be more than willing TO give all he had
This was greeted with derisive laugh
ter by the creditors. Mr.. Redwood
asked that they appoint committee OF
three. one Of whom was to be Mr..
Blumenthal. TO deal with Mr.. Dier's
plan. This was laughed down. and
noisy demands th.-t he state the details
OF the plan were shouted. The plan. no
answered was mot in share just at
present" Mr.. Myers then said he be-
lieved that the sum OF contributions al
ready made could DO swellcd to more
than 10000 by going after" Dier and
ris wife.