The New York herald., 1922-04-30
FAILURE OF BROKERS
FOLLOWS EXPULSION
FROMCONSOL|DATED
RaynOr, Nicholas & Trues-
dell Have Liabilities of
Over 100000.
WOMAN FILES PETITION
One Member of Firm Was
Customers Man for Dier
Bankrupts.
LIBBY is SENT TO TOMBS
Charges Pile Up Against Man
Who Failed With Assets
Of Only 5000.
LIBBY IS SENT TO ToMBs

Developments in the bucketshop sit
uation yesterday included the arrest
of former broker indicted for grand
larceny and the failure of the firm Of
Raynor, Nicholas & Truesdell, AZ
Broadway. The failure followed the
action of the New York Consolidated
Stock Exchange on Friday Of expel-
ling Blaine J. Nicholas on a charge
Of violation of section 5. article Of
the exchanges bylaws, which covers
the notification of customers orders,
the 1921 method" Of bucketing.
The firm. consisted of De Witt G.
Raynor, formerly customers man
for r. d. DER & Co., which failed for
$4,000,000 last January; Earl II.
Truesdell and Blaine J.sNicholas, who
held the exchange membership for the
firm. Raynor was examined on FEE
ruary ID in connection with the der
failure, and admitted that he had run
an account under a fictitious name
while employed there. He was later
characterized by several employees OF
the Dier firm who testified at the same
hearing as being one of the real
heads" OF the Dier firm, with Andrews,
Shrimpton and others.
woman Files Petition.
The involuntary petition was filed in
the United States District Court early
7. n.
who claims 81. .555 due her on a promis-
sorry note. Liabilities Of the brokerage
house are listed as upward OF $3coOo'
and no statement as to assets Is made.
Hays, st. John G. Moore, 43 Exchange
place, are named as attorneys for the
petitioner.
Letterheads and office stationery used
by the bankrupt state that the house
has branch offices in the principal cities
Of New York and Pennsylvania, includ-
ing Rochester Syracuse. Auburn, Ge-
neva, Albany. Scranton and Wilkes
barre. The firm also operated branch
office at 80 East Forty-second street.
Detective John Cunniff of the District
Attorneys office arrested John A.
Libby, aged 27, of 357 Sterling place,
Brooklyn, yesterday on a bench war
rant issued some time ago, charging
grand larceny Libby, 1t Is alleged. con-.
Quoted brokerage office at IS Broad
way. which failed on March 2. accord
Ing to the complaint. with assets of
only $500 and liabilities OF thousands of
dollars
Say stock Wasn't Bought.
Specifically stating that on August .,
1921, Libby took from Isaac Loeb of 1856
East Fifty-second street fifty shares of
United Retail Stores stock as collateral
for the purchase of fifty shares Of Loft
Candy, the complaint alleges that Libby
never purchased the Loft stock, and
then failed to return the stock placed as
collateral or the money equivalent.
Libbys firm Is in the hands of the re-
ceiver, George w. Martin of So Wall
street, appointed In the United Sta ties
District Court.
Benjamin F. Schreiber. Assistant Dis
trict Attorney. said that he had received
numerous complaints against Libby.
Charles T.. Fox, 7l2 South avenue.
Williamsburg, Pa, near Pittsburgh, Pa.
he said, had friend named Ryan in
Libbys office on January 10 to whom
Fox wrote for information about Dia-
mond Match stock. Ryan not being in
the office at the time Libby opened the
letter Fox charges. Libby then boarded
a train for Williamsburg and advised
Fox that the stock was a good buy, and
took from Fox fifteen shares of American
Telephone and Telegraph to be used
as collateral for the purchase of Dia-
mond Match.
This purchase was never made, Fox
SAYS. who asserts that on February Q
Libby sold his American Telephone and
Telegraph stock and kept the proceeds.
Libby was sent to the Tombs and VIII
be arraigned tomorrow before Judge
Charles C. Mott in General Sessions.
DER to Go on stand.
Gilmore ID. Dier. head of the bank
rupt brokerage house which went under
in January owing s4.oo0.o0o. will be ques-
toned again on Tuesday regarding the
transfer OF business from Charles A.
Stoneham and about lavish expenditures
and other withdrawals of the firms
money.
Creditors of the bankrupt brokerage
house Of Mosher e. Wallace. 30 Broad
way. will go before Judge Learned
Hand in the United States District
Court this week to ask that the sched-
ules OF the brokerage house be filed
and that a searching Investigation be
made into certain transfers OF funds.
An examination Of the bankrupts will
also be asked in order that an explana-
tion may be made of the alleged blind
short accounts" run BY the brokerage
house and the account carried by
Mosher q Wallace with Straus a. Co,
SO Broadway. which was sold out when