The New York herald., 1922-07-09
der SETTLEMENT
NETS HALF MILLION
Judge Mack Accepts 'Contribu-
tions' Giving 5000 Creditors
12 1-2 Cents on Dollar.
5000, 900 FROM sTONEHAM
Many With Claims Against
Failed Brokers Threaten to
Fight for More.


The creditors of the bankrupt
brokerage firm of e. D. Dier & Co.,
which failed in January for more than
$4,000, 700, will receive an aggregate
sum Of 100000 from several persons
formerly connected with the firm, &C
cording to the settlement that Judge
Julian w. Mack accepted and con-
firmed yesterday in the United States
District Court, upon the motion Of the
attorneys for Manfred w. Enrich. the
receiver. This means that the credit
ors may receive twelve and one-half
cents on the dollar.
The settlement was threshed out in
court for more than three hours among
the attorneys for the receiver and
counsel representing various commit
tees of creditors. Numerous kilograms,
letters of protest against the settle
ment, and one lengthy arraignment
Of the methods of the receiver and his
attorneys were brought to the judge s
bench and read. 1t is evident that 9
certain large portion Of the 5000 or
more creditors are determined that the
settlement Is inadequate, and are
equally determined, to force much
better settlement from Charles A.
Stoneham. who transferred his Gus
toners accounts to the DER firm.
Contributions to he Made.
The settlement consists Of ''contribu-
tions," which in detail are 100000 from
Mr.. Stoneham. 100000 from Ross F.
Robertson. Stoneham's partner: $780,
600 from Henry d. Hughes. Dier's for
mer partner; $32.50o from Dier's wife.
Mrs. Edith Read Dier: $25,000 from B.
F. Shrimpton. former DER manager
$25.000 from Lawrence H. Starr a for
mer partner in the firm. and $17.500
from IAN anonymous broker whose
Identity was concealed.
The Stoneham contribution may be
Increased to either $250,000 or $500, 900,
contingent upon the number of cred
itors who vote to accept the present
settlement. The terms Of the contribu-
ton from the principal owner of tho
Giant baseball club are that II rs per
cent Of the creditors approve Of the
settlement he will give the 5000, 900; II
S5 per cent. vote for the settlement he
will increase II to $3.50, 900, and In event
OF 95 per cent. of the creditors acquies-
cling to the acceptance of the settlement
he will make the amount of his contribu-
ton 100000. The amounts. by being
accepted, clear all Of the persons named.
Judge Mack ruled that any persons
not voting to accept the proposition
might take any other steps he thought
advisable in the way of civil action
against any OF the persons named In the
contribution list. and could recover what
ever OWL court might award.
Representing the Milwaukee and
Chicago group of creditors, L. Barton
Case vigorously opposed the accepta nee
of the settlement and asked the court
to grant the creditors until July 22 for
A long brief from Charles
c. James. chairman Of the Chicago
group, was read by Judge Mack I'm
which the settlement was regarded as far
too small TO satisfy the creditors there
The statement also criticized the methods
Of the attorneys for the receiver and
said that Stonehani had not been pressed
nor had the attorneys
the right line OF Investigation,
looking into the transfer OF his accounts
to der
The statement said that the manner
In which the case has been conducted
by the attorneys for the receiver, Saul
s. Myers and Arthur q. Hayes had been
brought to the attention OF the United
States Attorney General and that the
creditors In the West were determined
10 fight In the belief that further
assets could be recovered. Judge Hand
allowed the creditors who wished 10
enter protests to do so before July 22.
only 20 Favor Fisht. He Says.
Mr.. Hayes IN presenting the settle
ment stated that OF the 1900 creditors
who had filed claims with the receiver.
Il was on record that 2,lo0 were In
favor OF accepting the settlement, 500
had not been heard from and but twen-
ty-five were In favor of fighting. He
added that the creditors who had voted
for the settlement represented more
than s1.s00,00o In claims and that the
average amount owed to the few who
wanted to sue Stoneham amounted to
but few hundred dollars each.
He admitted that creditors assent
Ing to the compromise settlement will
hereafter be barred from proceeding
against Stoneham.
District Attorney Banton declined 10
yesterday on the statement
made on Friday by Elmore ID. Dier that
he (Dier) had been made the goat"
and the intimation that several guilty
persons had escaped Indictment while
he is now out under $3b. 900 bail await
Ing trial. DER will 20 to trial the first
Of any Of those indicted in the case.
Mr.. Banton said.