The sun., 1919-06-22
SEXES LOUP CO.
100000 CURB
DEAL RECORDS
Inquiry Starts When Pa
irons Complain Brokers
Withhold Profits.
CUSTOMERS IN ANGUISH
Buyers and Sellers Names
Omitted From Firms Papers
Recording Transactions.

While twenty or thirty men who re-
Gently thought they had made for
tunes in the stock market were jab-
bering and clamoring for the man.
aser or anybody else who might be
able to drop a soothing word in the
brokerage offices Of II. c. Loup & Co.,
80 Broad street, yesterday afternoon.
two agents OF the District Attorney
dropped In and trebled the excitement.
The District Attorneys men, De-
tective Sergeant Stanley German and
Subpoena Server James Breen. had
been sent to Broad street by Assistant
District Attorney Dooling. They bun
died up all the books, account sheets
and other records they could find in
the Loup establishment and rushed
them in a taxicab back to the Grim
inal Courts Building for Dooling's in
spection. They also persuaded six
employees Of the firm TO go along vol
unfairly.
Customers Follow.
The four room suite of the brokers
having thus been vacated OF all human
ity. the twenty or thirty customers on
the trail OF the stocks which they had
bought. or the profits they had made, or
their money back or some syllable Of
hope. likewise migrated to the District
hAh al
their stories to one another. while In an
adjoining room the Loup employees. In
ciuding two girls--s telephone operator
and q stenographer-waited to be inter
viewed by Dooiing, who called for them
from time to time to explain whatever
appeared in the firms records.
At the end OF the afternoon he said
he was not nearly through his inquiry,
but that he had been told that there
were claims against H. C. Loup q Co.
amounting to 81, 100000 on the accounts
OF more than 500 customers"
The visit to the brokerage office re-
suited from a complaint taken to the
District Attorney by Benjamin ]. Spell
man, a lawyer. on behalf Of several
investors. They said they had been
unable to collect profits that were due
to them or to obtain delivery Of stock
or to secure reimbursement. At least
one OF the complains nts said that after
he threatened to go to the District At
tornsy a check for $500 had been given
him. but Mat on attempting to cash II
at the Chatham and Phenix bank the
bank reported "insu<hcient funds"
H. C. Loup 4 Co have been in busi-
ness about three years, According to
Dooling, they have exploited Alaskn
Zinc and Copper. Keliar OIL. Flag Tunnel
and Franklin OIL and Gas stock, but
their principal activity has been dealing
In curb stocks on margin. They. sent
agents through the small business and
shop districts OF Brooklyn and Man
haitian and. according to the complain
ants. also had direct wire connection
with Morris Poole 4 Co. 81 second ave-
nue., Manhattan.
Dooling says that many persons oi
small means who thought they saw an
opportunity for quick money making
, in the great bull market speculation
were obtained as clients and that wher
TO cover their margins the bonds were
not refused.
One of the Loup employees told Dool'
| ing that slips were made out at the ent
| of each day showing the transaction
for each account, but not showing from
what other broker the stock was bought
| or to whom II was sold. A slip which {
Sun reporter saw said that certain
| stock had been sold for 500. but Their
was no entry Of the buyers name o.
, column for such an entry.
r., d. Taylor "Reai Head"
Dooilng said II appeared on tn
, records that II. c. Loup and JoSepi
Kelsey constituted the nrm Of II. C
| Loup Company. but that the employees
said the real directing head was Frani
! r. TAYLOR of Flatbush. Taylor was no
! at his office when the papers were seizeC
or at his home yesterday, and his fam
ily was asked to have him communicate
with the District Attorneys office al
soon as he returned.
Nor was f. w. Baumeister, said by
Pooling to be the office manager, avail
| able at the moment. There was an e
| w Baumeister & Co, brokerage firm o.
Sc Broad street. against which a peti
ton In bankruptcy was nled December
8, 1915, and the Edward w. Baumeistei
who was a member OF that firm was ar
rested February 81. 1917 on an indict
mtnt charging him and his partner with
! grand larceny In having failed to ac
count for $I.o56 which a client said h,
had given them to invest in stock.
According 10 Dooling the market let
ter writer for II. C. Loup & Co. is Walter
| r Seagraves. formerly connected will
r. II. Scheftels & Co. which was Georg,
| Graham Rice's firm with c. w. Field 4
| Co. against whom a bankruptcy petition
was fled November ]. and with Barrett
Bros. The W, T. Seagraves who wal
with the Scheftels outft was arrested
along with George Graham Rice ant
Continued n Seventh Pare,