The New York herald., 1922-03-13
Head Of Firm Permitted
Wholesale Robbery of the
Worst Kind Is Charge.
WAR ON .FLY-BY-NIGHTS'
Creditors Counsel Favors a
Board Of Censors to Pro-
tect the Public.

Creditors Of the bankrupt, brokerage
house OF Z. d. DER & Co. have been
advised by counsel to withhold their
acceptance of the 100000 offered by
Charles A. Stoneham, owner of the
New York Giants. until thorough in
vestigation of the details OF the failure
OF the firm Eas been completed. 1t be-
came known yesterday. Opinion OF
the various organizations OF the
creditors differs somewhat on the
policy to be adopted, and to clarity
matters for them, special meeting
Of all creditors in this district will be
called within tie next week or ten
days.
From the Western creditors OF the
DER house, who are represented by
g. c. James Of Chicago. comes word
that a payment OF 25 per cent Is not
acceptable to them. In the words of
Mr.. James, according to Daniel w.
Blumenthal, who Is working with him
at this end of the matter. "Afr. Stone
nam will have to 'sken over at least
$s.0o0,O00
stoneham's Action Called Nice.
Mr.. Blumenthai, who with his brother,
Maurice B. Blumenthal. is attorney for
more than 500 Dier creditors in this dis
trict. said yesterday that he did not
exactly share Mr.. James's opinion re-
garding what Mr.. Stoneham should be
requested to contribute. and said that he
thought that the baseball mans offer
OF 100000 based merely on what the
latter terms a moral responsibility was
very nice thing to do; considering that
he is evidently innocent OF any part in
the DER failure"
Regarding Elmore D. DER, head of
the brokerage firm, Mr. Blumenthal
spoke quite differently, saying that both
he and his clients felt that "Dier per-
mitted wholesale robbery of the worst
kind"
Whether Mr.. Stoneham has been ex-
amined by the attorneys for the receiver,
Manfred Fl. Enrich, is matter which
seems to be rather vague In the minds
OF both the attorneys for the receiver
and for the creditors. According to Leo
Bondy. Mr.. -Stoneham's attorney, the
baseball man was questioned when he
ASttiHth JAdNdHd some weeks ago.
Until Saturday the attorneys for the
receiver intimated that Mr.. Stoneham
had not been examined. but when told
OF Mr.. Bondy's statement they refused
to say whether Mr.. Stoneham had been
examined by them.
Lawyers Mainly Present.
1t Is quite probable that preliminary
examination OF Mr.. Stoneham took place
ut the meeting referred to on Saturday
by his attorney, who said that at the
meeting. which was attended by lawyers
mainly, the offer of the 100000 contri-
button was made.
In n letter written yesterday TO Dis
trict Attorney Joab III. Banton by Mr.
Eirmenthal, the organization of ma
tional association TO protect investors
was suggested. to cooperate with the
authorities, should the plan OF the Dis
rict Attorney to have strict supervision
II brokers be adopted. This committee,
~ tentatively suggested, would be COM
posed Of prominent financiers OF repu-
able standing In the various cities
u the country. who would pass on the
Liability of the would-be broker before
ne latter be permitted to practice his
f-ade.
n tliis way, 1t was suggested, a board
- reliable censorship on "fly-by might"
brokerage houses would be established
has been pointed out that the present
conditions permit any one with sufficient
apital 10 open and maintain an office.
Going business as an investment
broker" and countless OF these brokers
Nave, according to various lawyers now
invest eating their activities. suddenly
disappeared from the lobbes OF our best
hotels and gone hurriedly IN the general
direction Of Mexico or Canada"