New-York tribune., 1922-09-14
Prosecution Is
Hinted After
Dillon Hearing,
Trustee in Bankruptcy Says
He Was Offered Fee for
Secret Session by Lawyer
for Dandy Phil'' Kastel
Another Actress Named
Check for $4,000 Made Out
to w. J. Failon Is i'm Ger
trade Vanderbilt Account

The District Attorneys office con-
templates taking prompt action on
charges made yesterday at the bank
rnpscy hearing of Dillon & Co.. stock
brokers, by Keyes Winter, trustee in
bankruptcy, that an attorney for
Dandy Phil" Kastel had held out q
financial inducemens to him TO have
the testimony taken in secret.
Benjamin F. Schreiber. assistant to
District Attorney Banton, who has al
ready made a demand for the Dillon
records. said yesterday that he would
ask this morning for copy of the
testimony given by Mr., Winter. and
that subpcenas would be issued il the
testimony warranted.
Mr.. Winter himself took the witness
chair when the bankruptcy hearing was
called at 10 o'clock. He said that last
Saturday he had been informed by
Randolph M. Newman, representing
Kastel, that there was substantial
zee connected with the holding OF fur
ther bankruptcy hearings IN the Dillon
case in secret.
Kastel figured prominently In the
testimony taken In the "Nicky" Arm
stein bond theft case, and has been
mentioned frequently during the Dill
ION proceedings. Mr.. Winter has al
yeady charged that the account known
IS "D. d. No. 2" on the Dillon books
vas that Of Kastel, and that Kastel
backed the firm.
Actress Mentioned
In addition to the statement regard
ing secret hearings the name Of an
other actress. that Of Gertrude Wander
slit. formerly OF stThe Gold Diggers"
company, and that OF w. J. Fallon, also
.igured prominently in the proceed
;ngs. At former hearing 1t was re-
yealed that check for $1,100 made
out to Dillon was finally deposited to
the account of Miss Doris Sheerin, q
motion picture actress. Yesterday two
checks amounting to $4,000 made pay
able to Fallon and deposited to the
account of Miss Vanderbilt were men
toned.
Newman, who was present at the
hearing, hotly denied the imputations
made by Winters in regard to pos
sible financial inducement for secret
hearings.
81 merely told Mr.. Winters" New
man said, "that | thought no good
could come Of this publicity and that
as Kastel was not member of the
Dillon firm, naturally he did not wish
to be drawn into it. When Mr.
Winters says l represented myself as
attorney for Kastel or Dillon he is
under an hallucination."
'I had every reason to think from
your talk with me at the University
Club that you represented Kastel,'
Winters declared. ''What you wanted
was that this hearing should proceed
in secret, and if it did you would get
a fee and | would get one, too."
Deposit Slip Shown
The checks, one for $1,000 and one
for $4,000, were made out to w. j
Fallon by Dillon & Co. They passee
through several hands and were ther
deposited to Miss Vanderbilt's account
at the Hudson Trust Company. A
duplicate deposit slip was produced By
Henry B. Batter, teller; the $4,000
check was dated June 10 and was
deposited June 13.
The Dillon hearing was to have con.
tinued in the afternoon, but was post,
poned to September 90 at g p. M, as
Mr.. Winters wished to locate more
witnesses.
1t cost $4,000 to run Dillon q Co
for ten months, it was testified, durina
which time $4,000 was spent on tele.
grams.