New-York tribune., 1922-05-27
Says I)ies' * Co.
aid SBlacklslaiI7
Toll ''1'eePaper
Continued fro r nssc one)
manently excluded the Dier adver-
tising."
When MIR. Munscy bought The Sum
"Thc Hera!d's" Statement

'The Hera!d's' Statement
in 1a1s.' said statement: from "The
Herald "a number of questionable
financial firms wcYc advcrtisinp in the
/ paper. Under the rigid rules which
he established TO govern the admit
tance of any advertising to the columns
of The Sun ell financial advertisers
aoout whose character and standing
| there was known to be the sliphte 81
doubt we're thrown out Of the paper.
Whether the Hughes & der people
were among the lot is not rccalle
But if they had been advertising in
the columns Of The Sun prior to 1916
they were thrown out along with the
others who could not meet the strin-
gent tests applied to all advertising
after Mr.. Munsey's purchase of the pa
per.
"Similarly, when Mr.. Munsey later
bought The New Work. Herald MI
doubtful fnancial odvertising was OK
cluded from its columns under the
same vlgiiant res clons. Very likely
the Hughes & DER people and later
the DER people. were among the lot
then thrown out Of "The New York
Herald along with the others, of
whom clean sweep was made
In any event, subsequent to Mr.
Munsey's purchase OF The Sun the
firm Of Hughes & DER were persistent
applicants for several years for ad-
mlttance to the papers advertising
columns without satisfying the close
censorship Of the papers advertising
ttat they were desirable advertisers.
The same thing is true of the
people in respect to The New York
Herald up to the latter part of 1920
In that year the DER people deceived
The New York Herald through rep
utable friends and substantial bank
ing references that an injustice had
been done them in excluding them from
the paper, and they were readmitted
to its advertising columns under sharp
restriction as to the kind of adve rtis-
ing that would be accepted from them.
They had not been long restored to the
advertising columns, however, before
the true nature of their business was
definitely revealed, and the briefly re-
sumed advertising relations were sew
cred finally
1T is scarcely necessary to say that
The Sun and The New York Herald
which annually exclude hundreds of
thousands of dollars of doubtful ad-
yertlsing from their columns, never had
any other relations directly or indi-
rectly. than the foregoing with the
Hughes & DER and later the DER out
fit
Mr.. Hays did not pursue the "black-
mali' questioning further, but turned
to two entries for $1,000 and $1,000.
charged to legal expenses
Can you tell me whether you paid
Mr.. Hays demanded
81 harG)V thin1 so ADdrev-s on
swcred, adding that he knaw Senator
Lusk very we'll. 81 wont say did not
and | won't say did he answered as
Mr.. Hays persisted in this line of oues-
tioning. Finally MIR Hays asked:
"Have you anything to refresh your
recollection
81 might ask Senator Lusk' An
drews, smiling at his examiner.
Tells Of slG6.9oO Deal
Regarding the s166,ooo transaction,
Andrews admitted he had redeemed
with 100000 securities held by the
Seaboard National Bank. These secur-
ties were turned over t. lynch & Nc
Dermott aud their che-s was given to
DER & Co. This was on December 10,
1920.
Under date of January u. 80. there
were entries headed %. Lawrence" for
Sl66o00 in securities. August Stroh,
Andrews's son-i1l-law, and one Of the
hookkeepers. admitted that the y. Law
renee" ~ccount YVES fictitious, but that
he did not know whether or not his
father-in-law had made any money by
switching the securities from the bank
to Lynch & McDermott. The transfer
was made Just four days before the
failure.
At the morning session Stroh testi-
icd that s1,G00.00Q in securities depos-
tied by customers as collateral had
been turned over to Andrews for sale.
but that no accounting was kept, and
$l25, 900 worth were entirely lost track
of.
Mr.. Hays said he believed entries
were made under blank headings until
the end Of the day and then. if loss
showed, q customers name was writ
ten in; but if there was profit, An
drews's name was put down.
The hearing will go on again on
June at p. m.
Bernard Andrews, son of Fred An
drews, who also was clerk at Dier's.
was held in $500 bail for examination
June in the Tombs court yesterday
on complaint Of assault by Frank
Block, one OF the creditors After
melee in the hallway outside the ref
eree's Office on Thursday Block had
Bernard Andrews arrested.