The New York herald., 1922-09-23
DILLON Cash Bought
ACTRESSES $91O COAT
Referee Learns Also FallOn
Controlled Mysterious
Brokerage Account.
CHECKED OUT $3.50
Man Who Lost $500 Of
Stock Tells of Futile Eff
forts at Recovery.
INTERLOCKING is SHOWN
Several Persons Appeared to
Have Interest i'm Same
Bucket Shops.


ruptcy OF Dillon & Co, the stock
brokers alleged to have been backed
by Dandy Phil Kastel. learned yes
terday of more of the firms money
that was spent upon actresses. Louis
S. Rifkin, a furrier of 1888 Madison
avenue, at a hearing before Referee
Peter 3. Olney, Jr., said that a Dillon
& Co. draft had paid for 1910 Hud-
son seal coat that Dandy Phil bought
for Doris Sheerin, a motion picture
actress, the rent upon whose apart
ment. it had previously been shown.
was also paid by Kastel with Dillon &
Co.'S help.
Samuel Goldberg, 1900 Park avenue,
formerly a bookkeeper for Dillon &
Co., testified that the mysterious mo.
1000" account in the Dillon books was
that of William ]. Fallon. and that
Goldberg had been ordered by Edward
Post, cashier of Dillon & Co., to enter
the numbered account in the ledger to
conceal the identity of its owner.
Goldberg testified also that the total
drawn from Dillon & Co. through the
No. 1000 account was $3.50 in July
and Angus, Of last year. That included
the $4,000 Dillon & Co. check that Fallon,
according to previous testimony. indorsed
to Gertrude Vanderbilt star of "The
Gold Diggers.''
Bobbed Up in Einstcin Case.
The last time that Fallon and Kastel
appeared in the same item OF news was
when Fallon was an attorney in the
Nicky Arnstein case. and when Kastel.
who was reported wanted" In that case.
walked into the District Attorneys Of
fee TO demonstrate that he would not be
arrested.
third witness yesterday was Samuel
n Silverman, 149 Broadway. who said
that more than year ago he lost $4,000
worth of stock in dealing with Kastel
and Dillon.
Silverman testified that Kastel told
him he was the boss at Dillon & CO. ;,
and that he gave Kastel $1,000 for the
purchase on margin OF IL. 900 shares OF
stock. When Dillon later asked for more
margin Silverman said he ordered the
delivery of the stock and offered to COM
Ilete payment. When unable to get the
stock. he said, he called several times at
the firms office. Dillon. when seen. ex-
planned that he could do nothing until
ne saw Kastel. and the latter contended
that he could do nothing until he saw
Dillon. Finally. he said, he caught
kastel and Dillon together, when Kastel
explained that the stock was locked in
the safety box and the man with the
key was out. kastel asked for twenty
four hours. Silverman said. at the end
of which time he was to give him the
money for one block OF stock and deliver
the securities in the remainder.
Silverman testified that he got neither
the stock nor the money. and that the
only trace he has ever seen of any of
the stock was when he was notified that
j c. Rablner & Co., stock brokers, who
failed last week for $1,000. 900. had tried
upon which Silverman had stopped
transfer.
Could Not Trace His stock.
Mr.. Silverman did not know how Rabi-
ner & Co came into possession Of his
stock.
was connected with s. Z. Smith & Co..
also bankrupt stock brokers. The name
of S. Il. Smith & Co. and Sam Smith,
from whom that company took its name.
crept so frequently into the testimony
that Mr.. Winter demanded of Goldberg
whether Dandy Phil Kastel was not also
backer OF that house. The witness inn
mediately flushed m and declared he
would not answer without consulting his
attorney. who was not present. II want
TO know where / stand in this thing" he
declared.
MIR. Winter never obtained definite
answer to that question. but did learn
from Goldberg tha. Kastel was a visitor
Mt tho Smith & Co. office; that James
kerwin. who signed the checks for
Smith a. Co., was connected later with
Dillon & Co. or its predecessor. Dunn &
Co. and that Ruth Smith, kasters
secretary. formerly was connected with
Smith 4 Co.
IL was brought out also that FREE
quenter of the Smith and Dillon offices
was Frank Taylor. stock broker. now
doing a term for larceny in Sing Sing.
and that Smith also used the name OF
Thomas when IL seemed TO suit his con-
venience. 1t was shown further that
Rifkin, the furrier. made the ac-
quaintance OF Dandy Phil through
Harold L. Sonking OF WiIlS & Co. stock
brokers at so Broadway. who Is under
$4,000 bail pending trial OF an indict-
ment alleging grand larceny Of custom
ers securities.
TRIAL ON BUCKETING CHARGE.