The New York herald., 1922-11-24
Bookkeeper Wants to Do No
Harm to Post, but Won't
Give Reasons.
100000 IN BLIND ACCOUNT
Frank j. Ryan Tells How
Money Was Passed To and
From Josephthal & Co.

The man to whom the five indicted
principals in Dillon & Co, bankrupt
stock brokers, turned for help the mo-
ment they learned OF their indictment
was Arnold Rothstein. sporting man.,
who is reputed to be wealthy. whose
name crept frequently into the 1919
world series fixing" case and who
furnished bail for "Nicky" Arnstein.
That was learned yesterday when
Frank J. Ryan, formerly bookkeeper
for Dillon & Co., was examined before
Peter B. Olney. referee.
On q question from Keyes Winter,
trustee, Ryan said he did not know
Rcthstein and denied vigorously that
he was the messenger who went from
the indicted persons to the Office of
Eugene F. MCGEE, lawyer for Dandy"
Phil Kastel. to arrange for bond.
Mr. Winter said the reason he asked
the questions was that he was informed
that Rothstein furnished the 5000 bail
each for Ruth Smith. Kastels secretary:
Edward n. Post. cashier; Richard
Guest and Augustus f. Toohill, who at
one time or another had charge of
Dillon & Co. affairs.
Doesn't Want to Harm Post.
Mr.. Winter undertook to learn from
Ryan just what his responsibilities
were in Dillon e Co. Ryan said that
he had none, but that he took his orders
from Post
80. you were the blind actor for
Post?"
Yes. I took instructions from him."
the witness admitted. but Immediately
said he did not wish to disclose any,
thing that would harm Post. The
referee tried unsuccessfully for half an
hour to learn what Ryan had in mind
that he thought might harm Post.
Ryan said that he frequently saw Post
in conference with Kastel, Ruth Smith
or Daniel Dillon. but repeatedly made 1t
a point to say he did not know whether
Post was receiving instructions in such
conversations.
Ryan admitted he was the tool of
Dillon & Co.. at the request of Post in
$4,000 of alleged house transactions with
Josephthal & Co, New York Stock Ex-
change members, against whom n bank
ruptcy suit is pending. He said that at
Posts request he went with Post to
the Lincoln Trust Company. and an
aNSouhh was OpShSu NASic III IVY an .
name.
Account for JosephthaI & Co.
Through that account Dillon & Co.
are alleged to have sent their money to
Josephthal a Co and that company is
alleged to have sent money back to
Dillon G. Co. through the Ryan account.
The account ran for little more than
week. during which $4,000 passed
through it. Ryan said that when the
account was opened he felt compli
mented that Dillon & Co. should have
put so much trust In him.
n. J. Gerold of Josepthal e. Co. madt
the following statement regarding an
action begun against him and his part
ners by II. j. Schnitzer:
while / am averse to trying an ac-
ton at law in the papers in the
absence of Mr.. Josephthal in Chicago l
will say that II. J. Schnitzer was a
member of Josephthal & Co. as 1t ex-
listed prior to February IL. 1922, and
that there Is no merit whatsoever In his
charges.
"The ground for Mr.. Schnitzer's ex-
pulsion from the former firm of Joseph
thai & Co. will appear in our answering
papers to his suit, which will be filed
within few days. and will indicate the
true character OF this litigation insti-
tuted nearly year ago after Mr..
Schnitzers expulsion from the old firm.