Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-12-05
||D[ERl|E||VlE
lIlFRAUDBLAME:.
y, says H Was Outside
M, and Msndsnha''
Tells Of Deals +
,.roNo CASE NEAR END

K = Chandler. Jr., and Ear !:
...A.,l Defendants In secona
a: s.a.s. =. smbesslement and fraudulent 1
I'd. j! ,.,on. ~ took the witnes: ssana s..,n IN
2!I. own defense today before 'uO''
evis. .,, declared that the aha'r.
ena." u ua,.r Bros. 4 Co.. which failed
& vs. :. "oo .ooo. had been In the nsmas anu
S.s,ias Z Co.. since May, 1921.
~, -. permitted to give this tes.l' M
& w. a,,y after a long wransls be-
~ ~ v%.' ~. counsel. former Sheriff 10.
~ ~ siia,lan, and Assistant District
lttcrne$S, nn$,.r VH. testified that he had been y.
IN nS.r,;s ''outside man." ana knsw M
....irs of Office practice, re salG nc
W.: rs,sr ~ seen DR.. Alva J. savacoI.
~ Ma.,.t ~ who Is bringing the present
s.."scution. before yesterday.
Kohn Case Recalled
-. charge on which the brokers are
~ ~ tried il that they convertea 20
c.m use fifty shares OF Middle
oil ri stock which DR.. Savacool
~, i, n,,,ered october 8. 1O2O. 49,.
~ F For tried to bring out mention
~. conviction Of r. r. kohn, also
s.sr"wth Of q failure, In tllustra.
! noint he was trying to make.
~ neyis refused to admit the parity
~. cases, pointing out that In the
cesc Tho complaining witness hue!
sss" . demand fts his stock. but hnd
-. sso.cs,ved Il. In the present case llr.
s...cooi admittedly did not ask for MS
ss..s until after the firms bankruptcy
sTsndenhall, when he tok the. stand,
IA that before the failure OF Chandler
-. 4 Co. had been called before y
s"~m,ttee Of the Etock Exchange and
ssIsd N mike certain statements con-
ss,rins their reported insolvency.
"Ws tod the committee" said the
,,tnsss. "that we had Uncovered In
ilscembe, Of 1920 a state Of Insolvency
cSieh At that time made It necessary
M to use securities of clients In
sraer that we might keep on our feet
Ne told the committee a'so that II
Gay Of 1921 new capital to the amount
d}l,l75. 900 was put into the business
4 rreat amount OF this was raised D!
sus largest creditors. and at the time
siter the addition Of this sum, We wer'
. longer insolvent. That was whei
Ciark, Childs & Co. took over tn
epntrol OF the business"
'.liow long did Clark. Childs \ GO
remain In control?" asked Mr.. Gilhl
Ian. =,
Z The witness then was asked wha
nethod was followed by stock. broker
b listins and setting aside stOcl
Soueht by purchasers. Mendenhall an
overed that It was not transferred t
Ae name of the purchaser until com
S,etely paid for.
Many, times, the witness said, tn
Surchaser did not wish to 20 to tn
&suble or expense Of having q forma
(lsnsfer made. and then II was kept. Il
~ name Of the broker.
Had OIL, Stock on Hand
Didn't you always have sufficien
Middle States Oil stock on hand :
pver the account of DIR. SavacOOl? ?
0sked Mr.. Gilfllan. .s. =,
YES" the broker said.
( How did you know this. and no,
b you remember?"
II had been working on the book
br year In view Of the conditions q
eur affairs, and I paid special attcntio
b this stock"
Mr.. Gilfllan produced a receipt sign
q BY County Detective Williamson ia
tAe ''set.aside" book reported missin
yesterday.
"Nlissins" Book Found
II merely introduce this because a
inference has been made by the Dis
tnct Attorney that the book had bee
eon6scated." .,' g..
~ made no such inference" sal
Nr. Fox. and the matter was dropped
Fred Chandler. on the stand but
few minutes. testified he had cntere
the firm In 1915, succeeding his fathe
b 1913.
The morning session concluded wit
character witnesspa for the defentlA Mt,