The New York herald., 1922-04-09
Mysterious Account No. 33
Uncovered-No Tidings
of Missing 100000.
VICTIMS HOOT AND JEER
Light on Stoneham Negotia-
tions-Barrels Of Whisky
Reported as Vanished.

rupt brokerage firm OF +. ID. DER &
Co.. tcstifying yesterday before Sea-
man Miller. referee N bankruptcy,
Rector street. admitted that he knew
virtually nothing of how the business
was run or who was running it. He
said he was mot a bookkeeper or
broker" and that he never sold a
single share of stock in his life.
Dier said it would be impossible for
him to account for the shortage in the
company's books. He said that Col.
Henry d. Hughes, his former partner
in the firm of Hughes & DER. knew
All about the business. but that Hughes
had never put up cent.
He was the broker and I was the
OF ganizer," said DER HE ran the
brokerage end and I was to organize
ard get the money and the customers"
you did that, all right shouted sew
eral OF the 200 former customers who
hacked the room for the hearing. In
fact the session was stormy and the
testimony of Dier was punctuated
Throughout by the jee-s and Kisses Of
these creditors. many Of whom said
they had lost the savings OF life
time in the bankrupt firm. o.er's lack
Of knowledge Of the workings of the
firm was shown py me fact that he
SAID he could not estimate within
81 $4,000 the annual expenses.
Costly Jewelry for wives.
Dler testified that Hughes bought q,
$4,000 pearl necklace for Mrs. DER and
paid for II by a check on Z. L. der
.SsCo. This action " Hughes was
NECESSARY. he explained. because Hughes
hSsi bought necklace for his own
wife and Mrs. Dier had to have some
thing just as good as what Mrs. Hughes
had He said Hughes could explain
Why the firm check was used.
,ir Dier was questioned for more
than two hours by Arthur G. HAYS and
saul S. Myers, attorneys for the re-
ceiyer. Dier was represented by
Charles A. Winter.
The principal points covered in the
questioning of Dier yesterday were the
transactions between Hughes AM Dier;
bstween Dier and Charles A. Stone
ham, owner OF the Giants the amount
OF property owned by Mrs. DER and
how much about the Inside workings
of the firm DER knew.
Although the session was supposed TO
be held mainly TO hear the payment
pStn'' of Dier. which his attorney. Nash
Fleetwood. asserts will pay loo cents
oy the dollar, no mention OF IL was made
ihif after adjournment Mr. lockwood
fafled to appear and Mr. Winter repre-
sipted him, but knew nothing of the
"tlan." which has TO do with the offer
OF Thinning stock as part payment TO the
creditors.
ibier became quite indignant during
t3e questioning and frequently answered
Il! don't know" He shouted many re-
plies at the attorneys one moment and
the next became emotional when he
s,,oke OF the several months during
which Mrs Dier had been Ill and in a
Philadelphia hospital He testified later
that he never had gone to visit her nor
communicated with her all that time
aie was so seriously i'll, and did not
Have any idea of how much money
III property she has at present. He
fi,ln't even remember whether or not
lie had ever bought his wife q $4,000
1tr coat or a $4,000 automobile. or even
dhy jewelry for which the receivers
attorneys have the receipted bills,
anlounting TO some 100000.
..Admitting that he knew absolutely
.stning Of the brokerage business. Dier
n, every point told the examiner to CON
dit the books" where, he said. they
tould find out anything they wished
about the business.
s4f Creditors Jeer nj witness.
"How can T tell what happened in
. n business?" he asked the attorneys.
IS always left everything like that TO
~ cashier, the auditor and the people
the cage I can't account for an
stortage in the business, truthfully 7
Dart. | know | haven't got any OF 1t -
This was greeted with more boots and
afes by the creditors.
II want 10 do everything | can for all
3sv creditors" Der went on. Il will
Tav IL all back. dollar for dollar. IL
Aave TO work the rest OF my natural litel !
was at the head Of the firm. but no,
ragponsible TO the creditorsi" Here the
@,roar became so serious that Referee
Miller he'd TO stop and call for order
ksfore the examiner could 60 on.
"who Is responsible" he was asked
1eonsult the books" he snapped
atgrily I'm no bookkeeper!'
"Details OF the transfer of the business
of Charles A. Stoneham to Dier & Co.
III Diers trip 10 the KlondlSc, his form
j,ry the partnership with Col. Hughes
,hjd the falling Off Of business just before
bic failure were recounted by Dier with
,lauy lapses OF memory interspersed
3hong the answers. He told how he
lt4d TO put UP $780, and his friends
s4keral hundred thousand more to start
tie Arm of Hughes a. Dier. but said that
ssushes hadn't put up a single red
crnt."
sDier testified that up 20 just before
the failure he had between 100000 and
&A00 900 in bonds belonging to him in
ivox In his Offices Questioned as 90
!. where he got these FROM he said that
q H. had bought them with money he had
r>ade on other deals In the mining
~~xvne" Several hundred thousand dol.
lars were "given 20 him as a present"
~ said. nv man named Jacob Nolde
lxsiery manufacturer OF Reading. Pa,
,sbo has since died.
No accounting Of what became OF the
vsp0o0o which Dier sent over 70 the
ftBiiadelpha office at the time Of
jnghes's withdrawal from the firm
could be offered. he said. II sent 70
6sty off customers, DER said and denied
<lspt he knew why Hughes had been ex-
uclled from the Philadelphia Stock Ia