The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-09-27
LAWYER DENIES Big
SALES in DILLON LIST
Not Same MCGEE on Books
as Owing Money and
Owning Stocks.
LIFKIN ALSO PROTESTS
FaIlon, Referee Shows, Used
Brokers' Checks to Pay
Bills i'm His Business.
FIRM STARTED ON $4,000
Failure Was Put at 100000
When Crash and Bucket
ing Charge Came.

Reyes Winter, trustee in the $780,
900 bankruptcy of Dillon & Co.. stock
brokers, alleged to have been backed
by Dandy Phil" Kastel, showed yester-
day at hearing before Peter b. Olney.
referee, that in addition to the $4,000
Dillon & Co. check that William j..
Fal,on. formerly Kastel's lawyer, in
dorsed over to Gertrude Vanderbilt,
Gold Diggers" star. Mr.. Fallon also
obtained funds from Dillon & Co. to
apparently Dillon & Co. were entirely
uninterested 1t was brought out also
that Dillon & Co. Used the name Of
Eugene F. MCGEE as a dummy account
to conceal cross sales, or bucketing OF
customers stocks. and that similar
use was made of the name of l.. Lifkin.
Mr.. Winter called to the stand Eu-
gent f. MCGEE, who formerly repre-
sented Kastel. and was also law
partner of William T. Fallon, who
represented Kastel in the Arnstein
bond theft case. Mr.. MCGEE denied
that he ever had any stock transac-
tons with Dillon & Co. THAT is not
my name" he said, but a name sim
liar to mine. know nothing about
this account"
Never Had Deal with DILLON.
Previous testimony Of L. Lifkin, the
furrier. from whom Kastel Is alleged to
have bought fur coat with 1910 of Dill
lon & Co.'S money, for Doris Sheerin,
motion picture actress. was that he never
had any stock transactions with Dillon
& Co.
The books showed numerous opera
tfons in the name OF Lifkin, and that
thousands of shares of score of diff |
ferent stocks had been sold short In |
the Eugene F. MCGEE account.
Mr.. MCGEE was first appraised of the |
short account when Mr.. Winter spread
out the ledger and said:
Now, Mr.. MCGEE. this book shows |
that you owe me-"
He got no further Mr.. MCGEE inter-
rupted
''What?"
Mr.. Winter explained the short ac-
count, and added:
Il see from the books, however. that
also owe you some stocks, Mr.. MCGEE |
You are down as having bought several !
thousand shares of three or four varie-
ties"
Mr.. McGee denied all knowledge also
OF the purchase account. II
While Mr.. MCGEE did represent DANDY |
Phil" he said he never had represented |
Dillon Co. He explained three Dillon |
& Co.'S checks totaling $500 by saying |
that he had some checks from out OF |
town banks and to facilitate cashing !
them he left them with Dillon & Co. |
and took the Dillon checks in exchange !
Dillon Checks Pay Lawyers Bill.
Peter p. Mclaughlin, an official
stenographer OF the Court of General
Sessions. testified that Mr.. FalIon paid
him $3.50 by check drawn on Dillon e.
Co. for a record OF the minutes OF the
trial Of Frank b. Taylor who is serving
a term in Sing Sing for larceny of stock
or customer of II. c. Loup & Co., stock
brokers. who failed in 1919 for So, 600. 900 |
and for whom Taylor was office man.
ager: and also for a record OF the
minutes of the trial of Cornelius ].
Flood. a patrolman. who was convicted
last year OF the manslaughter OF James
Gushing, a fifteen-year-old boy. Fallon
represented Flood and Taylor.
Another fact brought out by the trus-
tee was that. although Dillon Co. failed
for 100000 they started with a maxi
mum capital of only $4,000, which came
from Dunn & Co., their predecessors.
Dunn a. Co gave Wade Templeton & Co..
stock brokers at AZ Broadway. a check
for $50. 000 Wade Templeton & Co. gave
Daniel Dillon a check for 100000 and
Dillon gave Dillon g. Co. a check for
$4,000. 1t has not been shown whether
the $4,000 which did not go from Dillon
to Dillon & Co. was used to run the
office. nor has II been shown whether
the $4,000 which did go from Dillon to
Dillon AZ Co. became part OF the funds
against which Kastel. Fallon and others
drew for various purposes 1t is alleged
that Kastcl was hacker of Dunn Co.
before Dillon 4 Co