The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-03-30
CREDITORS in CLASH
with der RECEIVER
Enrich Holds Out Scant
Hope of Obtaining Much
More Money.
PLEA FOR CONFIDENCE
DER Lost Everything in
Bankrupt Firm, Says
Investigator.
SUITS ARE DISCOURAGED
Fight to Be Carried to Stock
Exchange Firms Which
Dealt With House.

Arthur G. Hays, attorney for Man
fred w. Enrich. receiver for the bank
rupt brokerage of e. D. der & Co.,
appeared last night before a meeting
Of more than $50 creditors at Bryant
Hall and told them in fopceful Ian
guage that he was tired of creditors
committees and their lawyers insinuat-
ing that he was not doing all he could
to raise as much money as possible
out Of the ruins Of the bankrupt firm.
He said:
1--WE didn't find $4,000 worth of as
sets when we first went into this case.
and all the information that you have
read and heard about z. d. DER &
Co. since that time has been dug out
by me.
1T Is about time you were showing
confidence In the receiver and in his at
torneys who are trying to do the best
they can for you. We have no legal
hold on Charles A. Stoneham-"
"Oh, yes. you have" interrupted Q. p.
Carpenter. attorney for most of the
creditors at the meeting. Mr.. Hays told
Mr.. Carpenter to sit down. He said
that all Carpenter and Daniel w. Blu
rentha1, attorney for another group OF
creditors did was to make accusations
and vague statements without citing
legal authority.
Merely Trying to Raise Money.
I'VE could dissipate the assets in iiti-
CATION" continued Mr.. Hays. And II
you want to do that ! can make a lot
OF money out of 1t, but I have a pro-
fcssional reputation to maintain. Per-
sonally, / think der and his bunch
broke every law on the books. All the
receivers in the world can't keep people
out OF jail. We have nothing to do with
that. We're simply interested in getting
all the money for you that we can. and
npsu would be bettcrp or if these lawyers
OF yours would cooperate with lis in
stead Of doing all they can to embarrass
u.s."
at the meeting went ostensioly to pre-
pare for litigation outside of the efforts
Of the receiver Mr.. Hays's statement
was cheered. Mr.. Carpenter interrupted
him again to ask how much he thought
L. d. DER could raise.
mot cent replied Mr. Hays. II
think he was fool enough to raise all
he could to keep the company on It's
feet In the last few months before it
went down."
How about getting more than the
100000 out of Stoneham?' asked Mr..
Carpenter.
Il have told you we have no hold on
Stonehan," said Mr.. Hays. Anyhow
his attorneys have told me that he gave
the 5000. 900 to avoid litigation and pub
licity-and he has got the publicity.
And here is something else l want
you to keep in mind. I'm going after
those stock Exchange firms that dealt
with DER. My only worry Is that the
Exchange will cxpel them first.
Mr. Hayss speech was occasioned by
the statement of the chairman of the
meeting. Edward Parkinson. and the
secretary. George A. Williams, that the
list of creditors had been denied to
theis.' They said they wanted the list
In order to circularize the other creditors
with a View 10 FORMING a laTBeF anu
stronger organization.
Mr.. Enrich. who was In the back OF
tho room with Mr. Hays during the first
part of the meeting. asked permission
to make a statement. He said the list
Of creditors was in the hands of the
referee, Seaman Miller, and that IL
Miller wanted to turn the list over to
them he had no objection. He refused.
however. to "use his influence with the
referee" When Mr.. Enrich was urged
further, Mr.. Hays came forward with
his statement.
Denies settlement offer.
Mr. Enrich also took occasion TO deny
that he ever ma lie an of-er Of settle
ment. Mr.. Carpe alter ard Mr.. Blumen-
thai, in speeches at the opening of the
meeting. had referred to the proposed
settlement as one OF Is cents on the
dollar, and both advised the creditors to
get together and refuse. Mr.. Enrich
said:
"As to the creditors list, whoever
wants Il will have to speak to the ref
cree. I will say, however. that in the
first few weeks after Il. ID. DER q Co.
went bankrupt II seemed to me that
every lawyer In town wanted that list.
please understand that I haven't
offered any settlement. I'm not ready
vet TO submit any proposition. When I
do. then you can make UP your minds
what YOU want to do about II. But be-
fore that I want you to keep your minds
open. II 10 to the interest OF my attor-
ncys TO get all they can for you.
"Mr. Hays and have gone over the
evidence carefully. and as far as a suit
against Stoneham and Ross Robertson
Is concerned on the. theory that they are
partners--there is nothing In It,"
Before the meeting ended Mr. Enrich
made another short statement TO correct
the impression which apparently pre-
vailed that the acceptance OF money
from any or the members or former
members OF the firm would relieve them
from criminal prosecution.
II can't release DER from criminal
nj osecution." said Mr. Enrich. "You
cant trade criminal liability against
civil obligation, and I'd advise you not
to try it. AS for Stonehspi. IL, would
cSst him 100000 to figat the civil suits
that might he brought against him.
That's why he has agreed 70 urn over
that amount If you sue him and win
you'll have less than 100000 when the
fight is over.
Judge Learned Hand in the United
States District Court denied the petit
tlon NJ e. y. Dier for writ restrain
ing the District Attorney from obtain
ing and the receiver from giving access
TO tho books OF u. u. der a. Co, against
whom complaints are lodged with Dis
trict Attorney Joab RI. Banton.