The New York herald., 1922-06-25
der USED $150,O0O
ASSETS WHEN CRASH
CAME, SAYS HIS AID
$4,000 Taken to Save Min
ing Investments, Ref
cree Is Told.
KEPT WIFE'S JEWELRY
Right Hand Man Tells of
Stock Handed Over to
EisenlOhr.
WIRES ARE DRAWN OUT
Bell & Co., Who Got $40O, 900
Commissions, Knew Of Cross
Sales, 1t Is Charged.
WIRES ARE DRAWN OUT

f. D. Dier. head of the bankrupt
brokerage firm of e. D. Dier & Co.,
hid his wife's jewels in Newark
hotel after the failure, used $4,000
of the firms assets in an effort to
save his mining property and a few
hours after the receiver was appointed
gave stock worth from 100000 to
$150,000 to Charles J. Eisenlohr of
Philadelphia, according to testimony
adduced before Referee Seaman Mil
Ter by Saul S. Myers and Arthur Gar
field Hays, attorneys for the trustees.
The witness who gave this testi-
mony was E. Franklin Gaines, who
was employed by Hughes G. Dier for
years and who was with the E. d
Dier firm for many months before the
failure. He was q close friend of DER
visited him in his home here and in
Atlantic City and knew a lot abou.
Dier's family affairs. His testimony
was taken quietly on June and was
obtained yesterday, when the record
was written up. by THE NEW York
HERALD.
Gaines also testified that the Phila-
delphia firm Of Bell & Co., which has a
membership on the New York Stock Ex-
change, took commissions aggregating
100000 from Hughes and Dier aud Z.
ID. der & Co.. aware that the transac-
tons were what Is known as cross sales,
cffsetting one another. 1t must have
been apparent to Bell & CO., Gaines tcs-
tined. that DER was trading against his
customers.
Had $1,000 After Failure.
Gaines had been testifying that he
had seen DER with $4,000 at the Web
ster Hotel in this city in February. the
month after the failure. He thought he
had got the $4,000 from Phil Rosenbach.
Philadelphia art dealer. for ring
Then. closely questioned he went on to
say he had seen DER with a pearl neck
lace. one or two bracelets, one or two
pins and ring.
Where did you see all of these Jew
els?"
I'm Newark, at the hotel. the Robert
Treat Hotel. He had them In bum
Ne."
What was he doing with them?"
Holding them"
Holding them for whomY"
For himself, / presume"
They were Mrs. Diers Jewels, Gaines
said. returned by her to her husband
Just before she was operated upon In
Philadelphia
DO you know where Dier kept these
jewels?"
Carried Jewels with Him.
He took them with him."
Carried them around all the time?"
We'll. for quite while he nad them
with him; 1t might have beer two or
three weeks"
After some pressing the witness said
that DER nad told him he had given the
Jewels to Rosenbach
Gaines also told of the relations of
DER with Dennis Cara. connected with
the Mutual Capital Corporation. a con-
Germ which is said to have considered
the question of trying to work the Dicr
mining properties. intending to get the
creditors of the brokerage house to take
stock in them.
A month before the bankruptcy. ac-
cording to Gaines, Dier got American
Railways and other bonds worth s40.-
900 from Bell q Co. DER gave them 10
Mrs. Gaines In a package wrapped IN
a newspaper and she put them into
drawer in a clothes press.
Loan on $4,000 Bonds.
The examination continued:
@. Do you know when these were
handed over by DER to Cara? A. No,
I don't. I was simply told that Cara
was making a loan on them.
O. When did you last hand them over
to Dier--what month"; A. That must
have been two or three months ago.
O. 1t was after the bankruptcy? A.
OH, yes
Regarding Cara the witness said:
He was very much interested In try
ing to form n committee or a COM
pany to realize on the mining proper
Continued on Page Seventeen.