The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-24
SEEK BROKERS
In STOCK CRASH
OF $2,OOO,O0O
Arrest of H. c. Loup, J. c.
Kelsey and F. B. Taylor
Is Ordered.
ALL HAVE DISAPPEARED
Bankruptcy Petition Filed and
One Customer Claims Loss
of $125,987.
ALL HAVE DISAPPEARED

An order for the civil arrest OF Her.
bert c. Loup and Joseph c. Kelsey
composing the brokerage firm Of H. C
Loup & Co.. and of their ONCE mana
ger, Frank b Taylor has been signed
by Justice Donnelly of the Supreme
Court. Sheriff's deputies have had nc
better luck in their search for these
men than have detectives of the Dis
trict Attorneys Office. who are direct
ed to arrest them ON sight.
Loup lives at the Hotel Bossert
Brooklyn; Taylor, in Flatbush; Kel-
sey was formerly registered at the
Hotel Somerset, Manhattan. All three
appear to have gone on a vacation
Saturday morning just before the Dis
trict Attorney sent agents to the Of
fees at so Broad street to seize their
papers.
An involuntary petition in bankruptcy
was filed In the United States District
Court yesterday against Loup and Kel-
sey and H. c. Loup & Co. In behalf Of
Morris Poole, with a claim OF $4,000
Isidor Lawner. 800. and Alexander s.
Friedman. $500. Benjamin Spellman,
attorney for these creditors. said the
liabilities would probably reach $4,000
900. He feared tho assets were negligible.
On Saturday II looked as II most Of
the men and women who speculated
with Loup & Co. were minnows In the
fina ncial pool. 1t now appears that sold.
fish also were caught.
One Claims Loss of S125,es7.
The man who got Justice Donnelly
to Issue the order for civil arrest Is
Joseph Kaye OF Emporium. Pa. de-
scribed as a coal operator. He says
the brokers owe him 3l25.ss7,s2 on a
marginal account opened November 81.
He accuses them of fraud and conversion
bought sound stocks, most OF them listed
on the New York Stock Exchange.
Loup q Co. were also boosting several
oil and mining babies. One of them
was the Frontier Oil Company. Mar
garet McCabe. a school teacher OF 5+6
a member of the firm the fact that she
ID the support OF a blind sister and two
other relatives, She was advised. she
tails Dooling. that Frontier OIL would
yield a much better return than the
securities In which she had invested
her lifetime savings OF $4,000. So she
bought $4,000 worth Of Frontier OH.
The District Attorney was unable to as
sure her that she would ever see her
money again.
SCORES Of persons appear to have
been fieeced out Of their earnings. some
all the way up to s500,o00." said Doo-
ling. Il have examined sixty, complain
ants here. The losses they speak OF
range from $50 to $4,000. am in
formed that the members OF the Arm
turned every asset into cash on Satur-
day morning. Their employees whom
have questioned show a disposition to
help In the investigation"
Alderman Quinn Derides OmciaIs.
Meanwhile Alderman William F.
Quinn. Republican, put forth a statement
saying very little was being done to end
The sway OF the fake stock company and
rid New York. their headquarters, of
swindlers. He said: Nothing what
ever has been done except meaningless
interviews which District Attorney
Swami and his assistants have given out
from time to time. no doubt instigated
by members OF the Curb Brokers Asso-
Giaticn. From Police Commissioner En-
right we haven't had even the slightest
suggestion Of any corrective measures,
and from Mayor Hylan, Of course. we
don't expect any"
District Attorney Swann's comment on
the Quinn statement was: II would not
so much as abuse a minutes leisure to
give II attention"
All accounts agree that the lives. man
In the Loup offices was the manager.
Frank b. Taylor. A girl who formerly
Swami yesterday:
Taylor was the boss Of the whole
concern. Everybody took orders from
Taylor. He would even tell Mr.. Loup
what to do. Loup didn't spend much
time at the ONCE. He would come IN al
most every day. but would only remain
a short while. He spent most of the
time in Higginss saloon. in the base
ment next door. lie was married about
two weeks ago"
Kaye Couldn't Cash Checks.
Kelsey spent a good deal of time in
Pittsburg. interviewing prospects. In
an affidavit on which Justice Donnelly
ordered the civil arrest OF Loup Kelsey
and Taylor. Joseph Kaye. the Pennsyl-
vania coal man. says Kelsey got him to
open an account with Loup & Co.
November 2l. In lieu OF cash Kaye de-
posted as marginal collateral 500
shares OF Sloss-Sheffield Steel and Iron,
worth s31. 1850. and 200 shares of Aetna
preferred. worth $4,000. On June II
he told the brokers to close his ac-
count, He figured that his profits in
the market then amounted to 3+S,52875
in trading aggregating more than
100000 worth Of securities. He had