The New York herald., 1922-02-01
COL. HUGHES TELLS
OF SALE TODIER co.
Former Senior Partner Says
Brokerage Firm Then Was
insGood Shape.

Col Henry ID. Hughes, formerly senior
partner Of Hughes & Dier which. as E.
d. DER & Co. went into bankruptcy
recently. was questioned yesterday by
Clarence Loeb. ancillary receiver for
der & Co.. in the Philadelphia district,
and Arthur Garfield Hays OF counsel Tor
the creditors, before Commissioners Gil
christ regarding the failure OF the
brokerage house OF which he was
member until last May
According to COL Hughes. at tho time
he sold his interest in the concern.
which then changed its name from
Hughes & DER to II. ID. Dicr a. Co. the
brokerage house had a surplus, on us
books OF $7f0.000, and as far as he
knew was in good condition financially
Notwithstanding this, Col. Hughes testl-
fed at tho hearing yesterday that he
had sold his interest, which he valued at
more than s350.000, for S150,0oo, which
sum was paid to him in twenty weekly
installments Of $500 each and the rest
in payments of $1,000.
The reason for his selling his inter-
est. Col. Hughes explained, was that the
ticker service had been cancelled. He
admitted also that he had been ''both-
cred'' by the receipt OF more than
dozen complaints a week that the firm
was "buclxetlng." but said that he had
gone before the Philadelphia Stock FIX
change and satisfactorily disproved
each one of these assertions" Never
theless the expulsion of the firm by the
Philadelphia Stock Exchange took place
II will swear that there was never
any irregularity In the firm, direct or
indirect. which / know Of" said Col.
Hughes.
Questions regarding Ell Progrcsso min
ing stock and another mining security
In which e. d. Dier was personally In
tcrested brought forth the statement
from Col.~IIughes that to his knowledge
Mr. Dier never had accepted any or
these securities as customers collateral
Col. Hughes testified that he is at pres
cnt a member OF the Pittsburgh Stock
Exchange and of the Chicago Board OF
Trade, and a member of more than fif-
teen clubs, including the Lotos Club OF
this city.
Col. Hughes was questioned at length
regarding his art and library collection,
which Is estimated at moro than $780,
COO. 1t was disclosed that he had
bought a large number of books from
various dealers. including set OF books
for $4,000. Clarence Loeb read a list
of purchases made by Col. Hughes. and
stated that the checks in payment Of
these sums had Decn produced Dy tHe
assistant cashier Of Il. D. Der & Co..
purporting to show that the payment
had been made by the company after
Col. Hughes had ceased to be a partner.
Col, Hughes insisted that this was a
private matter between himself and Mr..
DER He admitted having also pur-
chased more than $4,000 in jewelry
from Caldwell and from Bailey. Banks
& Biddle. yfs
To the Best OF his knowledge. Col.
Hughes testified, the liabilities OF the
concern did not exceed $4,000, 900 when
he severed his connections. He said he
has no property Of amy kind besides his
home at Ardnorc, Pa, and his art and
library collection. The home at Ard
more Is owned by his wife. lie vigor-
cusly denied that for thirty DAYS prior
70 leaving the firm both he and Mr.. der
drew $1,000 n day each from the bank.
Col. Hughes was represented byWilliam
A. Carr of Philadelphia. -
Al an earlier hearing Mr.. Loeb and
Mr.. Hays examined Fred Andrews. an
oFic, manaser for the Dier. New York
officc. Andrews testified that he started
with Dier & Co. three years ago as an
Office manager at $50 week. but made
considerable money since that time in
various stock Transactions. The lawyers
questioned him regarding n recent paw
naent by him to his wife of $50. 900
which she had loaned to. him somc time
ago. Andrews refused 10 answer most
or the questions on the ground that the
answers might incriminate him. He will
he examined later by the attorneys for
THO creditors.