The New York herald., 1922-05-03
n. Y. EXCHANGE FIRM
CALLED IN der CASE
70TELLOF $SO0,OO0.
Receivers Hope to Trace
Profits on Deals With
House That Failed.
EXTRAVAGANCE CITED
Head of Bankrupt House
Said to Have Spent $780,
600 OH Himself in Year.
MEMORY OFTEN FAULTY
Cannot Recall Signing Many
Checks Nor Tell Where
He Lives in City.
MEMORY OFTEN FAULTY

heiiiDeiS VI a. certain new OTk
Stock Exchange house have been sub
ppnaed and will appear for examina-
ton by the attorneys for the receiver
for E. d. Dier & Co within the next
few days to determine whether this
house and several others profited by
dealing with the DER firm when they
were aware that the concern was
bucketing orders, or was insolvent.
This became known yesterday at
the close of the four hour examina-
ton of Elmore D. Dier. head of the
insolvent brokerage house, which
failed on January 1S owing some
81, 10000 to customers.
Attorneys for Manfred W. Enrich
the DER receiver. contend that if it
can be shown that members of the
New York Stock Exchange profited
by deals with DER some s500,000 more
can be recovered for the 10000 Dier
creditors The names of five broker
age houses with which DER dealt
were cited in the days testimony. but
it was not said whether one Of these
was involved.
The announcement about the sub
pnnas was sequel to a recent state
ment by the receivers attorneys that a
number OF Stock Exchange houses
were involved to certain extent in the
Dier matter and had dealt with the
concern when 1t was common talk
along the Street that the firm was In
bad straits and virtually bankrupt.
Admits Drawing 100000.
The hearing OF der was before Sea-
man Miller. referee. at Rector street.
DER admitted that during the year pre-
ceding the bankruptcy Withdrawals OF
more than $50o000 had been made from
the house which he could not account
for. More than 10000 of this. he said.
had been spent in HI. personal living
and other expenses. Confronted by the
actual checks Dier shrugged his shoul-
ders and said:
well. If it says ] signed them 1t
must be So I don't know anything
about them
When sheets showing that accounts
had been opened in the name of
Hughes & Dier. 30o West Seventy
second street. were produced Dier ad-
mitted that Carl Kneass and Clinch.
two of his managers, lived at that ad-
dress. but he said he had never opened
the account to his knowledge and knew
nothing of IT, lie continued
~ am surprised to learn that the
firms money was sent up 10 their
home. l can't understand H."
Dier denied that this had been an
attempt to hide assets.
"pidn't Know n single Thing"
Another account was headed Hughes
DER, care OF y. +. Shrimpton. so
Broad street. Dier said he couldn't
tell the attorneys anything about that
either When he saw a pile OF photo
graphic copies of the books of the New
York Trust Company showing that the
account ran through 1920 and into 1921
he asserted:
Il don't know how shrimpton got
that money"
Were you trying 10 hide any money
away where II wouldn't be noticed?' he
was asked.
II was not e he answered. 'I don't
know a single thing about what was
going on there then in the business
Four OF the five brokerage houses
whose names were mentioned In the
testimony for the first time are mem
bers OF the New York Stock Exchange.
They are Orvis Bros. Co. so Broad
way Carlisle, Mellick G. Co, 43 Ex-
change place Arthur Upper & Co. 20
New street and De Haven & Townsend,
SO Broadway. The fifth firm mentioned
was C. III. Van Beuren & Co., AZ Broad
way.
stock sold TO the Five Firms.
Saul s. Myers. attorney for the re-
ceiyer In reading from the books and
records Of T.. d. DER & Co. asked the
witness regarding the purchase and sale
OF 500 shares of Mexican Petroleum
bought from Carpenter, Caffry d Co.
another Stock Exchange firm. In May.
1921. and the alleged sale OF that stock
TO the five companies previously mem
toned In lots OF 100 TO each company.
Although faced with the records show
ing the transaction and the checks
signed by him, Dier said he never heard
ANYTHING about IL or knew anything
about the matter" He refused TO say
that the signatures were forgcries.
A check for $4,000 was exhibited.
drawn on the Dier company on May 81.
1921, and made payable 10 the order OF
"Mr. Hudson and charged &c the ac-
count OF Fred Andrews who. II was later
testified also had a private Dier bank
account opened in September. 1920. at
the Guaranty Trust Company. or this
check and OF the bank account the
sheets OF which we're produced by the
examiners. Dier testified that he knew
nothing
His memory was not strong enough TO
remember the Mexican Pete deal nor
the buying OF 5000 shares OF United
states Steel In a single lot. after a with
drawal had been made OF a considerable
amount OF money from the firm.
When assisted by the records and
Continued on Page Three.