The New York herald., 1922-09-30
Amsterdam Man Tells Of
Visits to Dooling and
Grand Jury.
SOME SEARCHES FUTILE
100000 Crash Followed by
Moves That Resulted
in Nothing.

very serious criminal aspects
have developed in the investigation of
the affairs of Dillon & Co., stock
brokers, who failed for 100000, and
whose principals, along with their
alleged hacker. Dandy Phil" Kastel,
and his one time secretary, Ruth
Smith, are under indictment for grand
larceny.
This arresting phrase was employed
yesterday in the course of hearing
being held by Peter B. Olney, refereo,
at 6S William street to determine wh5
Fay Shaul, music dealer of Amster-
dam. N. Y, victim of Dillon & CO.,
could not move the District Attorneys
office of this county in October, 1921,
to indct and prosecute the men he
charged with robbing him.
The central facts are that Shaul
testified yesterday that with John T.
Dooling, then an Assistant District
Attorney in the administration of Ed
ward Swami, he went before the Grand
Jury on october 4. 1921. made his COM
plant. answered questions and laid
the groundwork for the indictment OF
the persons he charged with swim
ding; that he repeatedly urged Doo-
ling to take action against Dillon 4
Co, and that Joab T. Banton. coming
to the District Attorneys office at the
outset of 1922 and in possession OF
ali its records. could not find any rec
ord Of shaurs appearance before the
Grand Jury.
Sought to settle Case.
Along with this goes the no less sen
sational testimony on the part of Shaul
that when he first appeared at the Dis
trict Attorneys office on October !.
1921, to try to bring Dillon & Co. to
book for taking $685. OF his money with
which to buy stocks and making no re-
turn for 1t. he was turned over TO
IAN Assistant District Attorney named
Magee or MCGEE" who asked him IL he
would not prefer to get his money back
rather than push the case, and who
was going TO get William j. Fallon, a
well known criminal lawyer and 4
beneficiary on the books of Dillon *
Co. for 5000.
With the hope that John L. Dooling,
who represented authority in Swann's
office for the greater part. IL not all.
OF that administration. could throw
some light on these sensational dis
closures. Referee Olney subpoenaed him
to testify yesterday. but he was too busy.
he sent word. to appear at the time
specified. and finally the referee go;
weary waiting and ordered Dooling en-
tered in default as n witness. a strong
effort will be made at the next hearing.
which is set for o'clock on october
II. to have Dooling present. 1t was
hoped. also, yesterday that James
Magee. Assistant District Attorney,
who has been in office under both
Swami and Banton, would appear to
answer a subpoena. but he was busy in
court and any information he might
have was deferred until October II.
shauI Relates Transaction.
shaul testified yesterday that he
placed an order for United Drug Com
pany stock with Dillon a. Co., got i
bin for s5.565 the next day and promptly
mailed the firm a check. lie never got
the stock or any sort of satisfaction
Presently he began to stir up the au-
thorities. He obtained the indictment
of Philip Kastel and others in Mont
gomcry county and then came TO this
city to nail them with further indict-
mcnts In the county where they did
business.
1t was then that he went to the Dis
trict Attorneys office, talked first to
"a Mr.. MCGEE or Magee." was finally
turned over to John I. Dooling himself,
was taken before the Grand Jury under
proper subpoena and gave his complaint
Continued on Pare SIX