The New York herald., 1922-05-18

OF bucketingl through crossing orders
and resorted to the old fashioned method
Of not executing orders at ALL
1t was also learned that the atten-
ton of w. S. Silkworth. president of the
Consolidated Exchange, has been called
to the relation of Percy Thomas. a
member of the Consolidated. with Dier
& Co. Thomas. 1t was stated. cannot
be found. He made his headquarters
with Dier & Co. and either executed
the orders of that firm on. the Consoli-
dated. or was supposed to do so.
There are indications In the account
books that Thomas got lump sums for
his services as broker instead of the
regular commission. IL such was the
case 1t constituted violation of the
exchange rules. Thomas Is on the men,
bership list OF the exchange as having
an office at 80 Broadway. He was ad-
nitted TO membership on June of last
year at just about the time der & Co. IS
business began to go from bad to worse
Had Good Connections.
The Dier concern appears to have been
we'll fortified in all directions and to
tions with members of the various ex-
changes. 1t also had relations with
curb brokers which may prove. on in
vestigation, to have been exceedingly in
teresting
What the Dier & Co. business might
be worth to houses with which it dealt
may be judged from the fact that the
New York Stock Exchange house OF
Carpenter, Caffry & Co. was shown to
have received from Dier & Co. in COM
missions from June 1, 1921, to the time
of the failure S54,645.90, or at the rate
of more than $500, 900 year. Nor was
this the only New York Stock Exchange
house which received large sums in the
same period.
The petty cash disbursements in the
last seven months of-the firms existence
totaled $152,407, 1t appears from the ac-
countant's investigation. In stating this
fact TO the receiver. Bersard j. Refs,
the accountant. said he had E.as. unable
to locate any vouchers supp5S5ig the
various items that go to make 10 the
total. The payments in most instances
were to employees, but the amounts
were not charged against the employees
personal accounts.
Took 5000 as Cigar Expense.
The extent to which this amazing
practice was carried in the latter days
of Dier Is indicated in the case of Fred
Andrews, whose total drawings from this
account were S14,816. He frequently
drew $500 or $500 in day and the only
explanation opposite the item in the
petty cash book was the word expense"
There was one item in June Of Elk
pense, cigars 5000. and there were
items of lunches" and "E. D. Dier."
Incidentally Dier personally drew out
of this account $685. in the same period.
For nearly all of these items there was
no explanation whatever. There were
two items of December 27 marked
Xmas" one for s244 and the other for
$3.50.
Andrews was one of the men In the
cage" In the Dier office. With him were
his son and his son-n-law, August
Stroh. who had charge of the petty cash
account.
The receivers attorneys in the Dier
bankruptcy, Saul s. Myers and Arthur
Hays, are Of the opinion that thousands
of dollars worth Of assets are being
hidden. 1t has been reported that DER
is attempting to get the Western cred
itors to agree to a plan of settlement
whereby DER will take over the mining
properties and form new company,
giving stock in the new company to the
creditors in settlement of claims. The
attorneys question whether Dier actu-
ally owns the mining properties of which
he talks, though he may have had
lease on some.