New-York tribune., 1922-09-30
Testimony of
Dillon Buyers
Has Vanished
Customers From Up State
Tell Referee They We're
Taken Before Grand jury:
Record Can't Be Found
Subpoena Ex-Prosecutors
Magee, of Banton's Staff, Is
Called Also, to Tell of
Offer TO Get Their Money


Important developments in the
affairs Of Dillon & Co., bankrupt stock
brokers, were revealed at the bank
ruptcy hearing yesterday. These were
that upstate customers who came to
New York to seek their money or
securities and stayed to enter criminal
complaints were assured by an AS
sistant District Attorney that he could
get them their money back; that
minutes of the testimony against Dill
Ion Il Co. given before the grand Jury
cannot now be found, and that another
customer, who made complaint to the
District Attorneys Office as recently as
SIX months ago, never has heard any
thing from it."
The witnesses who gave this testi
mony were Fay Shaul, of Amsterdam,
sons. including Dandy Phip Kastel,
have been indicted in Montgomery
County; Robert E. Crawford, also Of
Amsterdam, and Fred Figge, of Free
port, L. /.
James Magee, assistant to former
District Attorney Edward Swami, and
now on District Attorney Banton's
staff, is the one who assured his out
of-town visitors that the matter could
District Attorney John T. Dooling, who
was alse of Swann's staff, but who is
now in private practice, who took
Shaul before the grand jury last Oc-
tober to give the testimony that Is
now missing.
Subpnnas Issued
Subpnnas were issued for Doo1ing
and Magee, but neither Of them ap.
peared and Dooling was marked in de-
fault by Referee Peter B. Olney jr.
Magee was in court, where the sub
rema could not be served, and could
Aes tAave. Mr.. Swami was also to have
eeAa snbpenaed, but he was out of
town..
That they understood William j. Fallon,
lawyer, was the man Mr.. Magee ex-
pected would adjust the matter, and
that Mr. Dooling also looked to Fallon.
Crawford, who gave a Dillon & Co.
salesman $400 for twenty shares of At
lantic, Gulf & West Indies, said that
he came to New York with Shaul, who
was seeking $5,565 invested for 100
shares Of United Drug, and that they
went to the Chatham & Phenix Bank.
They were sent to law office in Pine
Street, from which they were referred
to Bernard Sander. Sander sent them
to Gilbert & Fallon, where they saw
Gilbert.
The next morning Gilbert told them
Fallon had said he was not on yearly
retainer from Philip Kastel, of the Dill
ion company, and would not inject him.
self into the case. So the two custom
ers from Amsterdam went to the Grim
nal Courts /. Building. They were
ushered into Mr.. Magee's office
"Magee took up the telephone and
called a number" Crawford testified.
after a conversation Magee said:
think this matter can be adjusted with
out any court proceedings. You would
rather have your money than 60 to
court, / suppose?' Crawford answered
yes. hut after a wait of two hours
Magee sent them to Dooling with
note"
Dooling talked with Shaul and also
used the telephone. He could not find
Eallon, Shaul testified Dooling re-
ported. Shaul then sat on bench out
side the gand jury room for awhile,
and then Dooling took him before the
grand jury.
No Record of Testimony
Shaul, Crawford and another AM
sterdam man, Carpenter. who had also
complained, never heard anything
more, they said. Shaul finally inter
ested Supreme Court Justice Borst,
of Montgomery County, in the matter.
and Judge Borst wrote early this year
to Mr.. Banton. Mr.. Banton wrote to
Judge Borst under the date of Janu-
ary and 13, stating that he had no
record of grand jury minutes showing
that Carpenter or Shaul appeared be-
fore IL, and that Mr.. Dooling had re-
signed.
Keyes Winter, trustee in bankruptcy,
informed the referee that he proposed
to find out what services Fallon, to
whom over $4,000 was paid, according
to the books of Dillon & Co., rendered
in the criminal courts for the con-
Germ.
Before Crawford and Shaul testified
Mr.. Winter called Figge to the stand.
Figge, a provision dealer Of Brooklyn,
said that he first opened an account
when the firm was known as Dunn &
Co., at the solicitation Of Frank Taylor,
who is now in Sing Sing. He gave
them Liberty bonds at first, later send
ing check for $1,000. Kastel called
at Mr.. Figge's office and told him the
money had been credited to Dillon's
own account, but that he had righted
it. AS matter of fact, as shown by
the books of the firm, it was reposted
from Mr.. Figge's account to the mys-
terious "Sam Smith" account.
Regarding his visit to the District
Attorneys office in March or there
.abouts, Mr.. Figge said they didn't ask
him many questions, and so he did
not tell his full story. He added that
ne "never heard anything from it."
George w. Martin, the original re-
ceiver for Dillon & Co, testified that
he had sent the books to the District
Attorneys office in September, 1921,
for examination as to crime.