New-York tribune., 1922-03-15
Dier Creditors
Seek Light ON
Stonella1,l Gift
Many Oppose Acceptance
of S2OO.OOO Offer Until
Data Are Produced as
to Transfers of Stock
Statement by Receiver
Denies Information Is Be-
ing Withheld: 100000
Contributed for Fund

Daniel ". Blumcnthat, attorney fol
many LEGAL creditors Of the bankrupt
brokerage house OF Z. D. Dier & Co.
said yesterday that his clients would
rot be satisfied with the offer OF S20~.-
600 70 creditors fund made by
Charles A. Stoneham until they re-
ceived further information concerning
the transfer of securities preceding the
DER failure.
According TO Leo Bondy. attorney for
Mr.. Stoneham the ofer was benevo-
lent ono and did not mean that Mr..
Stoneham accepted any respcnsi ibijty
for the failure. Mr.. otoneham firm
before it went OFT o. business. last
March, transferred tne accounts of
1000 customers. Amounting TO $1,000
600. 10 der & Co
G. A. Williams. secretary Of the der
Creditors League. in statement he
sent 10 the newspapers yesterday. re-
iterated some OF the contentious adc
by Mr.. B.umenthal, and he asks Why
Stoneham and the former Der partners
nave offered 30 contribute nearly half
= million dollars to creditors if there
IS TO liability and why they co not
make 100 per cent restitution if there
IS q liability.
No Mystery. Says Receiver
Manfred ". Enrich. receiver Of the
bankrupt firm. issued statement deny
lng that there was any information
withheld concerning the Dier banA-
ruptcy proceedings.
There is no mystery at all" DE de
clared. We have taken thousands Of
pages Of testimony before United
States Commissioner Gilchrist and be
ore the referee in bankruptcy. Mn.
Seaman Miller. But. instead Of involv-
ing the creditors in ,Le enormous cx-
pense OF litigation. we have quietly ne
gotiated the following contributions:
charles A stoneharl. ........... .>2oo. GOO
colonel Henry =. Hugh hes 100. .ooo
bernard +. Snrlnptoh -.........-....-. 1000
Lawrence II. arr..........,...-.. 5000
Mrs T. H. Dler.-..-..- -..,..-..-.. so coo
The settlement OF Mrs +. y. Dicr
has not yet been finally closed
"The situation in reference to Stone
ham is as follows:
About a year ago Stoneham retired
rom the brokerage business and trans
ferred a large number OF accounts in
New York, Chicago and Milwaukee to
+. D. Dier & Co. Stoneham claims that
the accounts were transferred with the
consent of the customer. We finally
prevailed upon Stoneham to contribute
100000 TO a fund Of $ l,000 600. which
We hope to raise for the creditors
ooth Mr.. Stoneham and Mir Robertson
we're examined at length in the pres
ence of the attorney for the Milwaukee
creditors, and Mr. Goldie, who | under
e. md mt cd IA = u too
which is now represented by 0. H..
Carpenter. The testimony, while not
IS yet placed on file, has been available
% all attorneys for creditors.
Hughes Retired Year Ago
80 far as Colonel Hughes is coz
oerned, he retired as Dicr's partne ?
nearly year ago. We settled with
Hughes for 100000 We made the set
Element upon the strength Of written
representations made by Hughes that
this substantially represented the en-
tire realizable fortune Of himself and
his wife.
Bernard F. Shrimpton was former
employee of E. D. der & Co He testi-
fed that he was worth $4,000 before
he entered the employ OF l.. D. Dier &
Co. and that that is all he has to-day.
We prevailed upon him to contribute
pear that his testimony is incorrect,
the contribution will be rejected
Lawrence II. Starr was a member of
the firm Of l.. d. Dcr & Co 1t ap-
peared at the examination that he has
no assets. 1t appeared that Starr
father had some months before the
banpruptcy loaned the firm OF DER &
Co. sos 900 in securities, to be returned
the following day. The bonds were not
returned for some months, and then
only when MIR. Starrs father had
brought proceedings. After some ne
gotiations Mr.. Starr voluntarily paid
$25.000 to the receiver.
Secs Benefit to Creditors
"Dier has been examined at some
length. His examination has not vet
been completed. He has not, so far
as | know, ever left the city of New
York since the firm went into bank
ruptcy. We have made no settlement
Of any kind with der nor with any of
his associates, except those mentioned
above.
81 am convinced that the settlement
of the estate in the matter above out
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