The New York herald., 1922-06-27
ST0NEHAM 100000
MAY GO IN DER FUND
Attorneys for Receiver Tell
What They Expect From
Former Broker.

Charles A. Stoneham. owner Of tho
Giants and former head Of the broker
age firm Of Charles A. Stoneham & Co..
may contribute 10000 for creditors of
the bankrupt E. D. DER G. Co.. accord
ing to questions asked Of z. Franklin
Gaines in the proceedings before Sea-
man Miller. referee in bankruptcy.
The Gaines testimony obtained by
THE NEW York HERALD has thrown
some interesting light on the business
of the Dier company. Gaines waS close
to DER. and. 10 he says. is still friendly
with Fred Andrews. the cashier. and
with others In the inner circle. His
testimony. however. made out fair
case for Stoneham. He was asked:
WAS the transaction with Stoneham
legitimate. as far as you know"
II would think 1, was perfectly legiti-
mate and / know q good deal about
it," he replied. Then he explained the
sale thus:
The transaction was the transferring
of Stoneham e. Co.'S customers to Dier
& Co. My information Is tina. Stone
ham told Ross Robertson (his partner)
whatever the value of the customers
names might be he could realize on
and Andrews negotiated the taking
over of that business on Il basis of uay-
ing 10 per cent. of the equities.
THE equities amounted to $2.100,000
I understand there was $4,000 paid
over for the accounts. but prior to
transferring the accounts Stoneham sent
out letter to all his customers notify
ing them that he was getting out Of
business"
III stoneham pays 100000 in settle
ment would you consider that a good
settlement"
II would consider II about $4,000
more than he could reasonably be ex-
pected to pay over. You might take an
assumption that he would pay back the
100000. I would even consider that
$4,000, as far as Stoneharn is con-
cerned. perfectly legitimate. Stoneham
had no way Of knowing that that was
coming out of the accounts Of the Gus
toners that were transferred over
Hughes & Dier we're reputed to be worth
million dollars. They had an over
certification. understand. at the Sea-
board National Bank Of about $500. 900"
The question referring to 100000
indicates that the attorneys for the
receiver. Arthur Garfield Hays and Saul
9. Myers. expect to get that amount from
the baseball man, or at least from those
who were In Stoneham Co. Pre-
viously II has been understood that
Stoneham had offered 100000 In settle
ment. Since that time there have been
reports that the amount would be in
creased. Definite information on this
point probably will be forthcoming in a
day or two.
Among the figures that are missing
In the DER picture, and have been miss
ing since the bankruptcy. is Percy
Thomas, member Of the Consolidated
Stock Exchange. Gaines gave some
interesting testimony on what the Con-
solidated member Of the Dier outfit did.
The questioning ran thus:
These transactions which Percy
Thomas had were all Irregular. weren't
they?"
II should say so yes"
"He really was not buying and selling
anything. was he?''
mo"
He was standing on the premises OF
DER & Co. pretending to execute the
orders. wasn't her
Yes"
"And he was not executing them7"
He was what you call ringing them.
I understand Forbisher "a bond broker
for D!er), was subject to expulsion from
the exchange (Consolidated) because ne
didn't 20 on the floor any more-they
couldn't understand when he was not
doing business on the foor--they were
paid commissions on all that business.
though"
Don't you believe whole lot OF
those commissions came back to Dier
and Andrews and othersT'
II don't think Dier ever got any OF
that kind Of money"
You don't think that DER would let
people like Percy Thomas and For
blsher get away with hundreds of thous-
ands of dollars Of commissions. do your
Il DON'T think the commissions ever
ran UP that much. II might be $1,000
or $1,000 day"