New-York tribune., 1922-11-01
Dandy Phil
Failures Many.
Says p Partner'
kastel Stepped From, One
Bankruptcy TO Another,
but Tried TO Evade Pub
Iicisy, Declares Culver
Dummies Put in Charge
Brokerage Firm Smashed,
Another Launched With
Promoter in Background

How Darby Phil'' Kastel, indicted
Ia Montgomery County along with
others of the firm, for the dealings
that preceded the bankruptcy OF Dill
Ion & Co, stock brokers, stepped from
enc bankruptcy to another, was told
Yesterday at the hearing before Re-
ferse Peter g. 0lney, SO William
Street. The testimony had to do with
tie formation of Culver e. Co., now
bankrupt, shortly before Dillon & Co.
went out of business. One OF the
witnesses was Culver, wha became the
camoufagc for Culver & Go. RS Dillon
had for Dillon & Go.
Kastel turned in $4,000 to the firm,
Culver said, saying he had obtained
il from friend, but that he later
borrowed back $4,000 OF it. When he
repaid the lean, enc $1,000 cheek. was
dfawn on Dillon y Co. Associated
with Kastel in Culver s. Co, the testi-
mony showed, was Jules Rabiner. of
Eabiner & Co., another bankrupt stock
broker
The story told by Culver was that
Kastel came to him with proposition
f9r going into the stock brokerage
business under Cuiver's name. It was
kastel's idea that the business be OBJ
tanned outside of New York, chiefly
in Philadelphia and Pittsburgh and in
Ohio. Kastel told Culver that he had
q friend. John McGilvray, whom he
described as bookmaker. and who
also figured in Dillon & Co, who would
put up 100000 TO finance the business.
sDandy Phil" Slipped Out
Culver & Co. began operations, and
then shortly afterward, on September
II, 1921, Dillon G. Co. failed. kastel
then told Culver he thought he would
rot go on with Culver & CO., but would
put him in touci. with some one else.
This was Jules Rabiner.
kabiner had cousin, Bertrand Bar
nett, who wanted to go into the stock
brokerage business, and Barnett then
agreed to come into the firm, Culver
testihed.
Bar1ett's brother law, Culver said,
an attorney named Morris Meyer, with
Offices in the Metropolitan Tower, drew
up the new partnership agreement, and
included in 1t document that stated
Cuiyer did not know either kastel or
Rabiner, and that neither of them had
anything . do with Culver & Co. This,
Kastel exclaimed he wanted set forth
because of what might come out in
yolving him in the Dillon bankruptcy.
Employees Had Accounts
Culver testified that Kastel and Rab-
iner actually ran the business AL
though Kastel had withdrawn from
partnership he did not sever his con-
nectioa with Culver & Co, but visited
It's branch offices in Steubenville, Ohio;
Brownsville, Pa, and Morgantown. w.
Va, as well Rs Philadelphia and Pitts
burgh The orders were put on di-
rect wire to the Rabiner Offices in New
York
Culver said that he had no active
part in the management Of Culver d.
Co, and in May of this year he re-
signed from it.
Another witness was F. J. Ryan,
margin clerk for Dillon & Co., in
whose name "house account with
Josephthal g. Co., a New York Stock
Exhange house, was kept. Ryan said
that he, Richard C. Guest, former sales
manager for Dillon & Co.; Felix Wein-
berg, former Office boy, and Louis
Corey. Of the bankrupt Corey e. Co.
are all now employed by Hauser &
Co.
AT the close of the hearing Keycs
Winter, trustee in bankruptcy for Dill
Ion & Co., said that he believed he was
on the trails of number of COM
paries similar TO Dillon & Co.. who
used their conections with legitimate
brokers to cover their operations.