The New York herald., 1922-03-11
MAY ASK STONEHAM
TO GIVE 100000
Offer Of S200.O00 Toward
Dier Settlement Not
Yet Accepted.
NEW CREDITORS ACTIVE
Western Contingent Feels
Head of Giants Should
Give Much More.
PROSECUTORS ARE UNITED
a5anson to Work With Ohio
and Observation-Disclosures
More Failures.
PROSECUTORS ARE UNITED

Charles A. Stoneham may be asked
to ,oatllbute At least $1,000 900 toward
a ettienent Of tie affairs OF the de-
suI ct Brokerage house of r. D. DER &
60 Instead of the 100000 he has
offered, according TO a statement is
sued yesterday by the office of Maurice
r. lslumenthaI, counsel for the Inde-
pendent Creditors Protective Com
mittee.
The statement said that "the chair
man of 4 very prominent Western
creditors committee" feels that Mr..
Stcneham is responsible and liable to
thc creditors of the DER concern for
upward of $4,000. 900"
Daniel w. Blumenthal brother of
counsel for the committee, said that
no offer of settlement on the part of
any OF the principals in the Dier case
will be considered until the facts and
circumstances surrounding the transfer
Of accounts from Stoneham's company
To the DER firm are made known.
1t was learned yesterday that the
offer of 100000 by Mr.. Stoneham was
made at the insistence of Arthur Gar
field Hays. &C 43 Exchange place, at
torney for the receiver The money has
not yet been accepted.
There never has been any ntima ton
that there was anything illegal or ir-
regular about the transfer of the ac-
counts from the Stoneham to the Dier
firm. Mr.. Hays says the transaction
was legitimate and that Mr.. Stoneham
had acted fairly and frankly.
Manfred w. Enrich, receiver for Dier
e. Co. and Mr.. Hays are considering the
institution of suits against four Stock
Exchange firms which did business with
the firm. Mr.. Enrich yesterday said an
effort might be made to recover certain
sums but that no definite decision had
been reached.
Prosecutors May Join.
Prosecuting officials over the country
will join to hunt down crooked brokers,
II was announced yesterday by District
Attorney Banton, who said he already
has had visits from prosecutors of two
other cities and has been in communica- :
tion with a third.
Two more stock brokerage houses
failed yesterday--the Russell Securities
Corporation of % Broadway and Harold
N. Haverbreck & Co. of 80 Broadway.
The two officials from other cities who
have called on Mr.. Banton are James l..
Lind, special representative of Edwa rd
=. Stanton. prosecuting attorney of
Cleveland, and Albert Hurwitz. Assistant
Attorney-Generalo of Massachusetts. Both
said Investigations similar TO that be-
ing conducted here are in progress in
their districts. Mr.. Banton has also had
an offer of apera fiop from ba nraS
ecuting officer of Pittsburgh.
Cooperation between Mr.. Banton and
the other officials was sought accord
ing TO Mr. Lind. because he had learned
that several brokers under scrutiny in
Cleveland had main offices in this city
Ar Banton pointed out that exchange
~ Information about brokers under in
dic,ment viii avert much unnecessary
work Mr. Banton said:
The visits from these gentlemen
opens up the possibility of establishing
lacework of prosecuting officials
throughout different sections of the
country that Is bound to make IL easier
10 catch an absconding broker. Life
Tor the crooked broker is getting very.
very hard. and We hope IT will soon be-
come so hard for him that he will have
to 60 out OF business entirely"
The District Attorney said he had
made arrangements to furnish to the
other prosecutors all Information con-
corning brokers under indictment. He
viii receive similar data in return.
Failures Estimated at $4,000.
The liabilities of the Russell COM
pany were placed at $4,000 and assets
NJ between $500 and $4,000. The
Haverbrcck firms liabilities were put at
$40, 900. with no estimate Of assets. Judge
learned Hand In United States District
Court, i'm which involuntary petitions in
bankruptcy were filed. appointed Walter
rollack receiver for the Russell con-
Germ under a bond Of $4,000.
The three pstltionlng creditors Of the
Russell company were Frank Sheehan,
who claims ssSs due on a stock trans
action: Harry Jackson. seeking si24 In
salary and credit balance. and Paul
T. H. Mcr.achlin. who asks for $500
for salary Creditors against the Ha-
verbreck concern were Abraham Stim-
mel. who claims 500. sophie Furman.
si00. and Matthew Kaufman. Sos
Louis Korv of Kory a Co. 70 Broad
charged with "buckoting'' "A $4,000 order
placed with him bv Otto Best OF Wes.
i25th street. probably win 20 to trial
Monday IN the Supreme Court as the
first Of many brok ars indicted In tha
present inquiry into bucket" shops.