The New York herald., 1922-11-02
HIDDEN STOCK RING
OF KASTEL WIDENED
Rabiner Says Dillon Backer
Was Partner in Goldberg
& Helm.

A fourth stock broker firm was added
yesterday to the list in which Dandy
Phil Kaste indicted bacber of Dillon
& Co. is alleged to have been a secret
partner. That firm was Goldberg &
Helm, now bankrupt
Kasters alleged relation in Goldberg
& Helm was revealed in the testimony of
j. c. Rabiner. head of the bankrupt
firm of ]. c. Rabiner & Co., under
examination by Arthur l.. Ross. attorney
for the receiver. before Harold p. Coffin,
referee, October "a. That was a week
before II. w. Culver, formerly of Culver
& Co.. revealed at a Dillon hearing that
Rabiner and Kastel were sercet owners
and operators of Culver & Co. and it's
branches. Culver's story directly con-
travenes the testimony Of Rabiner. who
said he had nothing to do with Kastel
except to lend him $4,000 once and to
transact some business with him when
he was a secret partner in Goldberg &
Helm. Rabner said he never got his
$2,500 back
Concerning Sastel. Rabiner volun-
teered:
HE is a popular figure in the Street.
He is a man who can make himself at
home anywhere"
Keyes Winter. trustee In the Dillon
bankruptcy continued his examinations
yesterday before Peter B. O!ney, referee.
w. b. Vause, law partner of State
Senator Loring Black. testified that he
and Senator Black were attorneys for
Dillon & Co. prior to their bankruptcy.
in which capacity they received from
the firm 300 in checks at various
times. To substantiate the right Of him
self and Senator Black to the money
he reclted a long list OF services rem
dered for the stock brokers and numer-
Gus conferences with Daniel Dillon and
Dandy Phil" Kastel. whom he said
he knew as * the initial by which
many of his friends called him. Many
of the matters in which he and Senator
Black were engaged for Dillon & Co.
were disputed claims of customers of
the firm, including a number of charges
of bucketing customers orders. He re-
vealed that such a complaint made in
Magistrates Court by Joseph z. Sharkey
is pending.
Mr. Vause said his firm assisted in
drawing up the agreement early last
September by which Dillon. after hav-
ing been absent for a month or more.
again took over control of the firm
from Augustus f. Toothill. and that the
letter of agreement was used by him.
self and Dillon to draw from the Chat
ham and Phoenix National Bank
check for $500 or more. of which Vausa
& Black got 5000 as n retainer for
services.
Mr.. Vause said, however that few
days later he loaned $1,000 of the money
back to Dillon to give to Max Arnstein,
attorney for a complainant against
Dillon x Co. and he never got the 81 900
back. lie contended the estate owes
him that money and additional sums
for services.
Mr. Winter did not agree that the
bankrupt owed him the money and Mr..
Vause did not agree that Vause e. Black
should return to the estate the money
they got. He and Mr.. Winter in con-
ference. are to settle those points or
decide whether suit is necessary.
Mr.. Vause explained that Dillon dis
appeared to raise money to restore
$1,000 which Kastel and others of the
firm said he had embezZled. He did
return some money
Frank b. Taylor. former stock
broker who is serving term in Sing
Sing for grand larceny in a stock trans
action. was brought down from Ossin-
ing. He refused to answer any ques-
tions on the ground that such action
might incriminate or degrade him.
Referee Olney asked him whether he
thought IL would incriminate Kim to ad
nit that he knew Dillon. Sastel and
the others. and he said he thought so.
His examination was adjourned week
that he might confer with his lawyer.