New-York tribune., 1922-09-29
Four Arrested
I'm Dillon & Co.
Stock Failure
Are Indicted In Montgomery
County ON Grand Larceny
Charge; Music Dealer
Alleges Loss of S5,565
Girl Called Brains of Firm
Daughter of Fire Captain
Among Those Held; Spends
Night i'm Police Station

Four persons connected VITA the
bankrupt stock brokerage firm Of Dillon
& Co. were arrested here yesterday On
bench warrants issued in Montgomery
County, following their indictment on
charges of giapd larceny. The indict-
ments were fotfnd by the Montgomery
County grand Jury almost 4 year after
a similar complaint had been laid be-
fore the District Attorney OF New York
County and after testimony had been
obtained at the bankruptcy hearing
here that showed unusually tangled
transactions and brought in the names
of Dandy Phil" Kastei, William j..
Fallon, Doris Sheerin and Gertrude
Vanderbilt.
Those arrested yesterday were Ruth
Smith. former secretary OF kastel;
Richard c.. Guest, drawing partner
in Dillon & Co; Edward N. Post, for
mer cashier and Augustus f. Toohill, a
former customers man. All except
Kastel were produced by Eugene f..
Niece, former partner of William j..
Fallon, and bonds of $1,000 each were
arranged in Judge Wasservogeps court.
Kastel is TO be produced on Monday.
Made Complaint in New York
The complainant is Fay Shaul, a
music dealer of Amsterdam, n. l..
His story embodies the same intorma-
tion, Shaul says, that he gave before
New York County grand jury, but
upon which no action was taken. 1t
charges that Mr.. Shaul ordered Dill
lon & Co. to purchase for him 100
shares of United Drug stock at 5000
per share, and gave Dillon e. Co. a
check upon an Amsterdam bank for
$5.b65 III payment therefor, but that
he was unable to obtain the stock
from the brokers or TO recover his
money.
Shauls complaint named particularly
Kastel, it is understood. Shaul had the
same experience others complained Of,
he said Kastel would refer them to
Daniel Dillon and Dillon would refer
them back to Kastek The last word
Shaul hai came from both Kastel and
Dillon and it was that the cashier had
taken the key to the strongbox away
with him, Shaul said.
Banton Finds Check
District Attorney Banton, after some
delay, found the check and other papers
submitted with the complaint here and
returned them, Shau said
Miss Smith, the daughter Of Fire
Captain John Smith, of the marine di-
vision, was arrested early yesterday
morning at her home, ASH Third Street,
Brooklyn. The Fonda police chief first
tried to arrest Post, it was learned yes
terday, and raidod Posts house with
the assistance Of local police, but Post
was not there. Miss Smith WAS referred
TO Yesterday as the brains" Of Dillon
& Co., representing Kastel She also
Kastel waSf connected - Goldberg &
Helm, Dunn & Co. and S. f. Smith &
Co. She spent the night at the Poplar
Street police station, was taken to
Police Headquarters later and finger
pgpted went from there to the Office
of her attorney and departed on a late
train for Fonda.
The indictment in Montgomery Coun-
ty is based upon the technical ground
that the larceny was committed there
Mr. Shaul having given a check on ar
Amsterdam bank upon which a New
York bank drew for the money.
Continue Silence
Winthrop Smith and Dr. Leonard K
Hirshberg. Of Winthrop Smith & Co.
j. operators Of blind" or discretonar,
& pool in the stock market, now in bank
ruptcy, with it's partners under Fedora
. indictments, continued&heir refusals I,
answer pertinent questions when tn,
hearing was resumed at noon yesterda,
before Referee John J. Townsend. N,
information could be obtained from
either partner as to how the pool op
Grated or az to the firms hnancia