The New York herald., 1922-06-26
ARREST DER TO FIND
ASSETS, SAYS AN AID
Continued from First Page.
his rake off. 30 you? A. That would be
pretty hard question for me to answer!

Cohen's Presents to DER.
@. What do you know Of it? A.
Cohen was giving him presents OF silver
and things of that kind.
Q Didn't these Stock Exchange houses
carry Dier without margin? A. They
might have done that without my hav-
ing any knowledge Of it,
Gaines testified that Dier's home at
Atlantic City had been virtually dis
manted. the valuable furnishings being
shipped TO the home of Diers mother
in-law at Overbrook. Ia. From this the
questioning went on to articles pur-
chased by both DER and Hughes from
various art dealers, who charged them
four and five times the amount the ar
ttcles were worth. according to the wit
ness.
DER pawned a ring some time in
March. Gaines said and got $4,000 on
II. which was 20 pay the fee for the
services OF Nash lockwood his attor-
pey. Gaines said Hughes and Der had
each spent at least S600,000 on their,
collections of art objects and furnish
ings for their respective homes Mr..
Myers then read off amounts that he
said were to be contributed by various
persons connected with the failure in
some manner, and asked Gaines what
nc NAou6Hl u edCIl amount.
Would Tax Hughes Ha-der.
Gaines said that the 100000, TO be
contributed by Hughes was far below
what he should contribute A settlement
of $4,000 from Lawrence Starr was
characterized by Gaines as about S23,-
600 more than they could reasonably
expect" as the youthful partner" knew
little or nothing of the sort of business
he had entered. On the settlement Of
S32,500 to come from Mrs. DER Gaines
said he could not comment on, as he did
not Know how much she got in furnish
ings and Jewels.
Mr.. Myers questioned Gaines about the
discrepancy between the $3,000.000 or
more Liabilities and about SO of assets,
and the witness replied that some one
must have taken the difference He
named those in the office who were en-
powered to sign checks-Der. Andrews.
B. F. Shrimpton, Adam Recklein. Bill
Stratton and Lawrence Starr. Carl
kneaas, Dier's self-styled rubber stamp
cneck countersigner. also had powers
with checks, Gains said but was strictly
honest and never knew what he was
signing or countersigning
new term was introduced by Gaines
when he quoted Shrlmp;on as talking Of
splitting splits This he said con-
sisted of taking the difference between
the bid and asked offer on stock on exc
cutions. which might mean point.
Shrimpton made between 100000 and
s3O0.OOO in this manner, he said Ac-
cording to reports he heard. Gaines said,
Shrimpton entered into these deals with
certain brokers outside the firm, and
then they all split the amounts made.
Clerk Receives $500 n Week.
Maurie Brooke received $500 a week,
Gaines said, merely because he was
doing certain work that DIR believed
was worth that much. and aad super
vised the transfer of accounts from
Hughes & DER to E. d. DER & Co.
Mr.. Myers turned his attention 10 the
Mutual Capital Corporation. in whose
offices at Fortyfifth street and Madison
avenue Elmore ID. DER appears fre-
quently between his visits to the ex-
animation stand and where he is said to
be operating again with his scheme to
float the mining proposition with, which
he hopes to repay some of the millions
lost to his customers.
Gaines said the proposition consists
mainly of a Mexican mine to which
Dier's title is questionable The plan,
he said. is to SELL the 10, 900 Dier VIC
tins the new proposition and ask them
10 invest more money.
Gaines went into the details OF the
money put up to help Laughlin take
over the receivership of the Ell Progresso
mining property. DER got several thou
sand dollars from Charles J. Esealchr,
cigar manufacturer OF Philadelphia,
Gaines said, which was used in getting
Laughlin into the receivership Of The
mining properties. where he is operating
in the interests of DER.
Meanwhile the word comes from the
offices of Benjamin f. Schreiber. Assist
ant District Attorney. that before the
end of this week those persons who are
found to have been crimnally responsible
for the Dier crash are most likely TO
find themselves under indictment. as the
evidence has all been placed before the
Grand Jury. which will report to Judge
tombstone in General Sessions on FRI