The New York herald., 1922-02-02
Millions Vanished Since
Sale of Brokerage Con-
Germ, Says Petition.
MANY RECORDS LACKING
Head Of Bankrupt Firm Drew
Big Sums Despite Losses,
Says His Clerk.

After day Of further investiga-
ton of the tangled affairs of e. D.
Dier & Co, brokerage firm, which
went into bankruptcy on January II,
Judge Mack in the Federal District
Court signed an order late yesterday
which authorized efforts to find out
what has become of the assets Of the
firm.
The order directs Alexander Gil
christ, Jr.. special commissioner. to
examine Charles A. Stonehanl, owner
Of the New York Giants, and Ross
Robertson, Stoneham's former partner
tl the brokerage business, next Mon
day morning in Gilchrist's Office at
the Federal Building Judge Mack
Signed .the order on petition of Man
fred W. Enrich. receiver of the estate.
Arthur G. Hays and Saul S. Myers, as
counsel to the receiver. presented the
order and verified petition to Judge
Mack.
The petition points out that on Janu
FRY 19 an order was made for the ex-
others, under Section 21-A of the bank
ruptcy act. IT also is set forth that after
The granting Of the order a meeting OF
the various parties in the case was held
in Mr.. Hayss office and that Stoneham
was present. Hays. says the petition,
told Stoneham that his examination
would be taken later. and Stoneham left
for Cuba Robertson also has gone to
s:uSa. according to belief expressed in
,He petition though he too had been
tol by Hays that he would be wanted
for examination
"Stoneham Assets Transferred."
"The examination of Stoneham and
Robertson" says the petition, us abso-
1utely necessary. From the statements
which have been made at the informal
meetings and from investigation which
Your petitioner and his attorneys have
raade it appear that Stoneham and
Robertson were in the brokerage busi-
ness In this city under the name of
Stoneham & Co. and that they trans
ferred their accounts to the extent of
about $3,000.000 to the bankrupt and
that they received large sums OF money
III these transactions.
TT further appears from the investi-
cations which your petitioner has made
a. JIoiA dDOut the tlIue OF the trans
fer or Stonehan's business to the bank
iupt millions Of dollars Of assets be-
ionging to the creditors Of this estate
have disappeared. and It is necessary
Tor the protection of the creditors that
sstoneham and Robertson and DER and
various other persons be examined un-
Ger Section 81 at the earliest possible
moment"
"securitfes Not Recorded"
August Stroh. clerk in the office OF
K. d. Dier & Co. FOR the last three
.ears, testified before Commissioner
Gilchrist that he vas in charge OF
securities for the firm and that he re-
ceived a salary Of $4,000 a year. He
WAS questioned particularly about the
handling Of securities belonging to the
firms credit customers He showed an
apparent lack of knowledge of the ac-
counts OF the company which was sur
prising TO the attorneys. He said once
he knew. OF securities sent to the COM
psny, and that no report of receipts
ever had been rendered
Stfoh testified that for several weeks
before bankruptcy proceedings were
started against the firm and at a time
when It was plain to all connected with
The company that the expenses were
much greater than the income DER
drew from 5000 to 5000 a week from
the firms money for his own account
More OF the activities OF Fred An
crews, formerly an office manager for
u. d. DER q Co.. were disclosed by
Stroh, who il Andrews's son-in-Iaw.
Andrews testified Tuesday but refused
TO answer many questions, including
one about where he got the money to
repay a loan of $500 which he had
negotiated with his wife. Stroh said
his father-in-law's advice was asked
when requests for loans were made. and
that he also handled the selling OF more
than s1.0ooooo worth of stocks.