Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-01-24
CHANDLER CLIENTS
DUMPED CHARGE
New Owners Cleaned Out N. Y.
Office and Played Against
Books says Witness
GRILL OF LITTLE STARTED

All the interests of Chandler Broth.
ers 4 Co. g clients were "dumped over.
board" in April, 1921, when the firm
now bankrupt, was placed under th;
heel Of Clark, Childs & Co.. of New
York, former employees testified In New
York today.
Intimate details of high and fnncy
6napce were given before John NJ. Hill,
referee In Bankruptcy, when the lonr
heralded examina ton of Edward s.
Little. New York member of Chandler
Brothers & Co., was conducted by J
Howard Rcber. counsel for the trustee
1t Is Clark. Childs h Co. which ~ Ia
be sued for 81 500. 900. one half of tis
bankrupt FIRMS liabilities, according
To Mr.. Reber. who quizzed witnesses nj
~ West Forty fourth street.
On Friday, May 13, 1921. Clark,
Chi'ds 4 Co. took complete charge
Of the Chandler firms New York bust
ness, We're ID. Reed, former New York
manager for the bankrupt firm, tes
tilted.
Now Rulers Cleaned House
He said James G. Thompson. who
took charge for Clark, Childs & Co.
Immediately fired thirty employees, or
dered out all private wires. abandoned
the firms membership, day and night,
In the stock exchange clearing house,
dismissed their curb market men .and
closed the New Haven branch office.
Reed testified Thompson told him the
only way for a brokerage house to make
money was to examine the books. learn
the stock preferences Of clients and then
play the market in the way opposite
the customers were playing It.
"You will find It a safe bet that 90
per cent Of your customers are wrong"
Reed alleged Thompson told MIN.
Reed said although Clark, Child &
Co. claimed Chandler Bros. & Co.
was 81 900, 900 short in its trading ac-
count, Reed said he could not tell
whether that claim was fact. Phlla.
delphia members of Chandler Bros. 4
Go. thought the shortage was only
500, 900, he said.
Make Collections Anyhow
William p. Redhead. formerly mar
gin clerk for the Chandler firm, testi-
fed that under Thompson's directions
we're sent to clients purport-
Ing to show the firm actually held stocks
which in reality had been sold long ago.
In spite of that, Redhead asserted, de.
nands for more margins were made on
clients. and interest was collected on
amounts due.
About fifty clients, some of them
heard the testimony with
and made no effort to hide
heir anger.
Mr.. Little, grilled by Mr.. Reber, said
the first he knew that Chandler Bros.
& Co. was in deep financial hole was
December 10, 1920, when Fred Il.
Chandler, Jr., called him on the telc.
phone.
The witness said Mr.. Chandler told
him the firm was 81 ,O00. 900 short in
It's account with Clark. Childs & Co.
Il said l guess we were busted, but
hat We might pull through" testified
Little. The witness said Clark, Childs
4 Co. sold from 81, 900 200 to 80, 6,OOO,-
100 Of stock owned by customers Of the
Chandler firm and that It was generally
known that the stock sold was the
property of the customers.
Earl Mendenhall attended the hear
ng, not to give testimony, but merely
n an advisory capacity. Frederick C,
handler was to have attended, but h
Ii at his home in Haverford.
Mr.. Little Is the member Of the firm
rho recently made the offer to pay the
1926 900 In lnstallments, and
| meeting will be held In Mr., Hills
,fiices In this city Thursday. when cred
tors will vote on accepting the offer.
1t Is understood that the payment of
his sum, II accepted by the creditors.
viii clear Mr.. Little Of financial OBJ.
igations. but will not ex0nerate him
rom any criminal action which may be :
aiken.