New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-06-04
5000 Fee
Strictly Legal,
Says Lockwood
,.,,,or Retained as lawyer
N Attempt to Get DER q
r.. Ticker Service Re
.,ored, Colleague Asserts
Advised by Stanch6eld
,s.r, Failed When Broker
'DOemurred at Search of
Rocks to Show Solvency


..,.. Iusk's acceptance OF $4,000
q. for legal services rendered
y DER & Co, prior to the broker
: am. failure, was a legal matter
W .,.,.fore regular IN every respect
. =. Charles c. lockwood, in whose
go, N. transaction took place ssid
..,,,v Mr.. lockwood said he was
=. .,tuslly present when the firm re-
$3.50 =. senator Lusk, although Mr. Lu'k
~ IN Nm sftsrward that the der com
'o'S "a given him a retainer and that
g.a' ..-nsry also had informed him
~. thew had employed Senator Lu'k
.n' :. Nor. 70 have the ticker service
restored. ....s.
~. nature Of defense Of Sen
tasks acceptance Of the fee. FL
~. D. bier, the head Of the defunet
..,.,ru suspected Of bueketing' has de-
80 a, N. witness stand at hearing
s.so,. Seaman Miller. the referee in
bankruptcy, that he ever paid Lusk any
80 The brokers' testimony made
!. .,rs.r that Mr.. Iusk served his firm
ant u GOOD will. Fred Andrews cashier
Oar ,bs firm, testified on Friday that
;, Maid Mr.. Lusk the money out Of his
ovn funds and was later REIMBURSED
BY der.
Recommended by stanehneld
v, Ioekwood's statement yesterday
'' "Tss late John R. Stanchheld sd-
v;.sd der 4 Co. TO retain senator
f1st az counsel. and Stsnchfeld wrote
"a senator Lusk for them. They met
a. nv Office Up town In Manhattan. l
vas present during part OF the inter-
vi,v' I was not actually present when
~, Arm retained Senator busk. but he
tod ne afterward that they had gwen
rim a retainer and they also told me
that they had employed him.
at was legal matter, and no is a
lawyer. Afterwsrd ! appeared at one
or two hearings in Senator Lusk's alb
senee and for him. As a result rec
ommerded 70 der & Co. that they en-
nloy expert accountants Of the highest
Handing 10 make a complete examina-
ton Of ali the books for the purpose
Of first showing that the firm was
solvent and, second, that the business
was conducted according 10 law.
The Stock Exchange people had said
,h,t II such a report showed favorably
ne firm could renew its application for
teker service and IL would be given
esnsideration. DER & Co. started 10
Do some accounting work, but when 1t
cane 10 putting outside accountants in
charged they demurred. stating that
the cost. estimated al between $4,000
and $4,000, was too high.
They declined 20 put the outside
accountants in charge. whereupon the
independent accountant and myself
withdrew. The accountant and myself
rendered no bill and received no money,
directly or indirectly, al any time, IN
any place or in any manner.
Ticker Not Restored
The ticker service was not restored
after Senator Lusk was retained. he
spent a lot Of time on the matter and
told his clients repeatedly in my pres
,nee that he could do no more than
nay other lawyer. who would put the
'sne time and attention 20 IL and that
be would do nothing unless the firm
rs solvent and the business straight
Mr. DER, the dentist-broker, is ex-
,eeied 10 take the stand again to-mor'
Tow after an absence from the hear
ms for several weeks. II is probable
Ia. he will be asked about the pay
rent 20 Senator Lusk. Technically
)iers testimony that he never psiC
'snstor Lusk for his services is cor
ect. according TO the testimony las
'ridsy by Andrews. who said that M
md not der paid Senator Lusk
andrews added that he paid the money
- personal transaction and did MOI
NOV der was TO reimburse him
bier. however. he testified, did REIN
bnrse him for the firm. Also. Andrew:
,sid. DER was present when he handed
Senator Lusk the check for $4,000.
Andrews will take the stand again
on Thursday. at which time he is ex-
peeted TO supply attorneys for The
New York Times" and "The New York
Herald" with certain information they
are seeking in connection with
Andrews's assertion that advertising
Representatives Of these two papers
md zone other" were paid "blackmail
money 20 restore the der Company
taveEtising The newspapers are en-
csayoring 10 ascertain who the So
called representatives were.