New-York tribune., 1922-03-12
s2,OOO,OOO
Claim Denied
| By Stonehalr,
No Legal Obligation Caused
Offer of 100000 for
Dier Creditors, Says At
torney for Former Broker
Banton Fights for Books
Two More Stock Concerns
Go Into Bankruptcy as
Third Makes Assignment

Charles A. Stoneham, head of the
former brokerage firm bearing his
name, made the offer to contribute
100000 to fund for the benefit of
creditors of the defunct firm of E. D.
Dier & Co. solely from a benevolent
impulse, Leo J. Bondy, his lawyer, in
sisted yesterday. Mr.. Bondy said the
chief owner of the New York Giants
now is in Cuba, whore he has in
terests in a Havana racetrack.
The offer, which has been tentatively
accepted by Manfred W Enrich, re-
cefver for Dier & Co., although spurned
by some of the creditors, carried with
it no moral, legal or ethical obliga-
ton nor was it for the purpose of
avoiding litigation Mr.. Bondy decla xod.
Claims Called Absurd
The STATEMENT of Maurice B Blumen-
thai, counsel for the independent
creditors protective committee. that
some of the creditors of DER & Co.
felt that Air. Stoneham was obligated
10 reimburse them to the extent of So
OoO, 900, Mr. Bondy said. was absurd.
In suppors of this he went on to ex-
plain that Mr. Stoneham. when he went
out of the brokerage business last
March, turned over the securities of
four Thousand of his customers
amounting to $2,o00000, to DER & Co.
and a similar number of accounts to
other brokerage houses The consent
of the customers to the transfer was
given, Mr.. Bondy said, and the Stone
ham firm has receipts from Dier e. Co.
showing that the securities were passed
to the Dier firm, which went into bank
ruptcy in January. with more than S3.-
100000 liabilities and assets which the
receiver has attempted to trace
Mr.. Stoneham's transactions were
perfectly straight and have been ac-
cepted by the receiver" said Mr. Bondy.
"1t has been esta blished that he re-
ceived receipts for the securities
turned over to Dier & Co, and other
concerns. He is now assisting the re-
ceiver in every way to trace the securi-
ties which should have been found in
the assets. MIR. Stoneham is under no
obligation to the Dier creditors simply
because they were his former custom
ers. His action in trans ferring their
accounts received their approval at the
time.
Plan for Assistance
In offering the 100000 to a fund
for the benefit of those who suffered in
the DER failure, Mr.. Stoneham was
actuated by a desire to assist more
than 500 of his former customers, who
appealed TO him for aid. 1t does not
mean that he accepted any responsi-
oility for the DER situation"
Mr.. Enrich said yesterday it would
be some time before the creditors
fund would be confirmed His state
ment of Friday that he was coptem-
plating bringing suit against four
Stock Exchange houses which handled
business of der & Co. was commented
on by a governor of the exchange, who
said he hoped such suits would be
brought. The concerns they might in.
volve were not disclosed.
District Attorney Banton is ex-
tremely anxious to obtain possession
of the books of Dier & Co, and on
Tuesday will argue in the Federal
Court against an order tempora rily re-
straining him from procuring them
from the receiver. Many of the com
plants in the District Attorneys Of
fee charging bucketing and irregulari-
ties in stock transa ctions name the de-
funct firm.
Two More Failures
Two more brokerage concerns went
into bankruptcy and one made an as
Signment yesterday. An. Involuntary
petition in bankruptcy was filed against
lsdor Friedman, George Markelson
and S. Milton Small, who, operating as
Friedman, Markelson &; Co., are alleged
to have engaged in bucketing. The
three men are under indictment for