The New York herald., 1922-10-12
$500 REWARD OFFER
FORKASTEL'SARRE
Trustee in 100000 Dillon
Failure Seeks Where
abOuts of Broker.
DOOLING MAKES DENIAL
Says SchulIs Complaint
Went Unprosecuted for
Lack of Evidence.
$500 PAID TO ACTRESS
Check to Miss Vanderbilt for
Plumbing Repairs-Murder
of Messenger Recalled.
$500 PAID TO ACTRESS

Keyes Winter, trustee in the $500, 900
bankruptcy of Dillon & Co, stock
brokers, alleged TO have been backed
hy Dandy Phil Kastel, announced yes
terday reward of $500 for informa-
ton leading to the arrest of Kastel.
Kastel with four others of Dillon
& Co, was indicted two weeks ago in
Montgomery county on a charge of
grand larceny by Fay shaul of Am
sterdam The other four are out on
bail
Kasters lawyer had announced that
kastel would surrender a week ago
Monday. The Montgomery authori-
ties said they had not been able to
find Wastel.
Mr.. Winter announced the reward at
a hearing before Peter b. Olney.
referee. 6s William street, at which
John r. Dooling, formerly Assistant
District Attorney under Edward Swami.
denied Mr.. Shauls charges and that he
had failed to get action from Mr..
Dooling on his complaint before taking
It to Montgomery county Mr.. Dooling
said no action had been taken because
''he was unable to get sufficient evil
dence.
S5,7Oo for Miss Vanderbilt.
More of Dillon & Cos. funds were
traced through William ]. Fallon,
formerly Kasters lawyer, to Gertrude
Vanderbilt. star of ''The Gold Diggers."
Mr.. Winter disclosed deposition that
Halstead & Grieser, Inc, had re-
ceived SLIGO drawn by Fallon from
Dillon & Co. to pay for renovation OF
the plumbing of Miss Vanderbilt,s
house in Ninety-eighth street. This
makes a total of SIS, 200, according to Mr..
Winter, that appears to have gone out
of Dillon & Co. through Mr.. Fallon to
the actress.
When Lewis Levine went on the stand
he protested against giving the name
of his employers because he did not
want it to get in the newspapers" Mr..
Winter refused to excuse him. Mr..
Levine said he Is head of the margin
department of Sartorius. Smith AMI
Loewi, members OF the New York Stock
Exchange.
n Through Levine and Michael L. Ross,
an automobile man, Mr. Winter
brought out that S. Milton Small,
formerly a business getter' for Sar-
torius. Smith and Loewl. was the
medium for some OF the business be-
tween Dillon & Co. and the Sartorius
firm. and that Dillon & Co. check
Small's automobile had been held as
security. The trustee said he will en-
deavor to learn what service Small
performed for the favor from Dillon
4 Co.
Took over Stoneham Accounts.
Levine testified also that Sartorius.
Smith & Loewi took over a number of
accounts from Charles A. Stoneham
when the latter llquidated his business.
and that the transfer was effected upon
& written instructions from Daniel Dillon.
Nostensible head of Dillon & Co.
The examination into the transa actions
between Dillon & Co. and Sartorius
Smith & Loewi has not been completed.
James Magee. who was connected with
the complaint bureau of the New YORK
District Attorneys office at the time
the Shaul complaint was made and who
is still in the office, said that he did
not recall the visit of Mr. Shaul
Magee recalled that at one time some
body did go TO his office on matter
involving Kastel and somebody told me
that all matters regarding Kastel,
'Nicky' Arnstein and others were TO be
referred TO Mr.. Dooling."
Magee said he knew of no service per-
formed by Fallon for which his draw
ings from Dillon & Co. might be re-
garded as consideration
Mr. Dooling also said he had no
knowledge Of services rendered by Fail
Ion He added, however, that Mr.. Fall
lon had defended Frank Taylor, whom
Dooling prosecuted, and who is now
serving a term for grand larceny and
that he was informed Taylor was con-
nected with Kastel in Dillon & Co. The
trustee informed Mr.. Dooling that it is
of record that Taylor drew $500 out OF
Dillon & Co.
Linked with Murder of Boy.
Mr.. Dooling continued that Fallon
once took Kastel 40 the District At
torney's office in connecuon with bonds
stolen 'in the case in which the mes
senger boys body was found in Con-
necticut' That presumably was the
theft of $17s.0oo worth OF securities from
Richard whitney & Co f4 Wall street
in August, 1919. following which the body
of Benjamin III. Binkowitz, the messen-
ger who disappeared with the bonds
was found hacked to pieces near New
Haven.
Mr. Dooling said he had information
that the stolen securities had been
traced TO Goldberg & Helm. stock
brokers. with whom Kastel is alleged
also to have connection. and that
F'alon took Kastel In on that matter.
JIe said Kastel denied handling any OF
the securities. THAT was the only time
ever saw Kastel" said Mr.. Dooling.
He said he remembered nothing about
Kastel walking into the District Attor-
ney's office and offering TO surrender
himself when IL was reported he was
wanted in the Arnstein case.
Mr. Dooling recalled the visit of Mr..
Shaul to his office, saying he gave Mr..
Shaul every consideration and took him
before the Grand Jury but was unable
10 get sufficient evidence in addition TO
Shauis testimony II appeared that Mr..
Shaui had dealt through a man named
Sims, manager Of Dillon g. Co.'S Albany
branch. and because communications had
been by wire 1t was difficult TO estab.
lish connection between kastel and
the transactions
II told Mr.. Shaul." continued Mr.
Dooline, ''and I still think that the place
to prosecute was up state"
~Didn't the books show you that the
firm was doing wholesale bucketing In
New York; asked Mr.. Winter.
Books are sometimes slSilfully kept
TO cover up such things" Mr.. Dooling
replied lie asked 20 see the books. but
the trustee said they were in a safety
deposit vault.
Mr.. Dooling denied he was the only
one irythe District Attorneys office who
bsndi~d matters pertaining to Kastel.