The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-25
HEAD OF STOCK
FIRM IN CRASH
GOT $40 WEEK
II. c. LOup, Taken Before
District Attorney, Says
He Was the Goat.
BLAMES ALL TO MANAGER
Attorney for Victims Declares
Assets Only About $4,000
in 100000 Failure.

Herbert c. Loup. head OF the stock
brokerage firm Of II. c. I.oup & Co.
| one Of the three men sought after ar
investigation was started into the af.
fairs and operations of that concern
telephoned to the District Attorneys
office yesterday that he was at Broad
sGhannel. Mr.. Swami sent Detectives
John Cunniff and Stanley German for
him and Loup was brought to the
Criminal Courts Building, where he
was questioned by the District Attor-
ney, John T. Dooling OF the CONNER
cial frauds bureau and Benjamin
Spellman. attorney for several Of the
concerns clients who started the in
vestigation when the company failed
to turn over to them the profits they
thought they had made.
Il was only the goat of the thing
Loup said. II know very little abou,
It,"
But weren't you the head Of the
flrm?" asked Mr.. Swami.
Yes" replied Loup. but Frank B.
Taylor ran 1t. I was really only q
clerk"
What did you get out Of it?"
Il was supposed to get from $40 to
$3.50 a week." said Loup. There was
an arrangement by which I was to
draw salary between those amounts,
according to the business done. Most
of the time got nearer $40 than $3.50"
How the Firm Started.
Many Of the questions put to Lour
dealt with his connection with Taylor
office manager OF the brokerage concern
who is still missing. He said he frst
met Taylor three years ago in Robins's
restaurant In South Broad street, and
that as far as he knew Taylor at that
time was doing nothing beyond some ad-
vertising work in connection with the In
vestment OF securities. Loup was then
employed as a clerk in a brokers' Of
fice, but in the early part OF 1913, he
said. he and Joseph C. Kelsey, another
clerk, and Harry Fitzpatrick, who later
became rather widely known through his
connection with Rangeburnett OIL stock
organized the firm OF H. C. Loup 4 Co.,
their intention being to do a general pro-
motion business.
Some months later" said Loup
Fitzpatrick got dissatisfied and We gave
him $500 for his interest In the bust
ness"
Soon thereafter Taylor was admitted
into the firm. Loup said, although he put
no money into 1t. But he soon had II
on Its feet financilly through the sale OF
some Alaska zinc stock. Loup declared
that from the beginning of his connec-
tion with the concern Taylor assumed the
position of its directing head and knew
most about the FIRMS operations
Loup told the District Attorney that
after the coming OF Taylor he had little
or nothing to do with the books. accounts
or with the sale of stock.
Taylor ran the place" he said.
Limited in Signing Checks.
Although Loup as head of the concern
was empow cred to sign checks on the
earlier accounts. after n while, he said,
he was permitted to sign checks only on
Taylor's instructions, and those only for
bills. office expenses and expenditures OF
that sort
Besides arranging for Kelsey and me
to draw salaries ranging from $40 to
$3.50 a week." said Loup, I'VE were sup
posed to share in the profits. but there
Kelsey acted as salesman"
Loup said he had little knowledge OF
any of Taylor's transactions, but ac-
cepted Taylor's word for everything con-
nected with the books OF the company.
II knew nothing about the firms Enan-
n al Of O - ha I'D halfhnn0h lAaFnad
from bank check stubs once that he had
a balance of S25. 900"
He said he had no idea what the pres
ent assets OF the firm might be. although
he thought the liabilities would easily
amount to 100000.
Attorney Spellman declared, how
ever, that his examination OF the con-
GERMS books indicated liabilities Of
1000 900, which was the figure orig
inally estimated. He also produced
checks showing that $4,000 in varying
amounts had been drawn from the bank
in May by Taylor. and said he had not
yet been able to learn what amount
had been drawn In June. Taylor's sig
nature on all the cancelled vouchers and
checks was identified by Loup
What was Taylor's object In drawing
these large sums?" Loup was asked.
"I don't know" he replied. 'unless II
was for some business purpose"
Knew Taylor speculated.
Loup said he had been told by Taylor
that some leases for Frontier OIL prop
erty IN Texas were to be secured and
that an agent in the Texas oil fields
had been sent $1,000 for that purpose.
Loup also said he knew that Taylor
had been speculating. his favorite
stocks being Marines, Pan-American and
Mexican Petroleum. He told the Dis
trict Attorney that some ten days ago
he began to get an idea that Taylor was
not doing everything Just right That
was when Joseph Kaye, O. mining opera