The sun., 1919-07-02
BROKER GONE,
OFFICE STORMED
Prosecutor Raids Quarters of
Prof. Lilly on Broadway
and Seizes Papers.
LOSS MAY BE S1,00O,OOO
Head of Bankrupt Concern
Formerly Psychology Chief at
University Of Chicago.

business j. Frank Lilly was for a
while professor OF psychology at the
University of Chicago.
This fact is important in that II
| may explain his absence from his
Offices on the fourth floor Of the build
ing at 62 Broadway yesterday after
noon when his sumptuously furnished
establishment was raided by. Alexan-
dor I. Rorke. Assistant District At
torney, and a general cleanup made
Of all Of his books and papers. He
! had seized the psychological moment,
| SO to speak, leaving the premises fully
seventy-two hours ahead Of the raid
ing party, and leaving no trail that
might lead to a discovery OF his
whereabouts. F. Kent Schiener. an
associate of Professor Lilly. also was
| absent from the premises.
The raid was one of the real old fash
ioned kind and conducted in such spec
tacular manner as to draw occupants OF
neighboring office buildings TO their win
dows and cause a general suspension Of
| business. The crowds that gathered
about the Broadway and New street
entrances of the building where patrol
wagons were stationed grew so dense
that police reserves from both the Old
| Slip and Greenwich Street Police Sta
tons had to be summoned to preserve
order.
Turmoil About once.
| When Mr. Rorke arrived at the broker
age offices shortly after o'clock with
Detectives John Cuniff. John Weston
and other members OF the staff attached
to the District Attorneys ONCE, he found
the premises in a state Of lively turmoil.
Two hundred of the brokers' clients
surged about the door Of the place
| clamoring for the stocks that they had
/ paid for, while a heavily perspIring clerk
was shouting himself hoarse in his ef-
forts to pacify them. The only explana-
ton he could offer, however, as to the
reasons for their stock being held up
was that Mr. Lilly had disappeared.
Inside the rail in the brokers' main
office was a group of several score clerks.
stenographers and other employees. They
were not working. because since Satur-
day they had been without a boss.
From them Mr. Rorke learned that
the place had been carrying 5000 open
accounts, and that its profits had av-
| eraged for a while $500 day. He
was told. however, that the place had
been caught short on investments in
and recent losses may have brought It's
liabilities up to sl.OVO,UUO.
| He was told by the clerks that the
principal creditor is Martin Lally. a
resident Of the Grand Hotel. whose per-
sonai and family investments with the
place have totalled s150.0oo.
| Quick action was taken by the raiders
to attach all securities on hand in the
safety deposit boxes of tho concern
with the Columbia Trust Company next
door. These were found TO contain
J 100000 In good securities. according 10
/ Mr.. Rorke. 1t was also found that the
Arm had 100000 worth OF stock pledged
with the Equitable Trust Company and
$4,000 with the Seaboard National
Bank as security on loans,
A very Imposing safe In Mr.. Lillys
office, however. yielded nothing more in
the way Of cash or securities.
The big ledgers OF the Arm were in
an iron cage and they were carried
down and packed into the waiting patrol
wagon. After them went mailing lists
and accounts of all kinds, letter files
and baskets full of papers.
All OF the employees were questioned
| by members OF the District Attorney
stan before being permitted to leave the
premises. None of them was able to
give any clue as to the whereabouts OF
their employer or his home address.
Claim Made for sse.O47.
They said that Schiener had hved nj
72 Hudson street, Hoboken. and that he
had not been seen around the office for
about two weeks They said that a
party had called at the place last Satur-
day for the purpose of serving some
kind of court writ upon him on an al
legged claim for s36.0i730.
Following upon the heels OF the raid
came bankruptcy proceedings against the
| firm. Two involuntary petitions were
| filed against II, and Federal Judge A. H.
Hand appointed Joseph Proskauer, an
attorney. receiver. directing him to take
complete charge Of al! available assets al
| once.
/ Inc bankruptcy proceedings ma med j.
| Frank Lilly and his wife, Rosalind Lilly
as the members of the firm. which was a
! copartnership. II was said, however
that Mrs. Lilly had not been active in its
affairs.
The creditors filing the bankruptcy pc.
titions and the amounts OF their claim;
are Max Hirsch. $4,000; Evelyn Hirsch
900: Louis Gluckman. $500. John IT.
sostman. $3.50 David Kramer. 500 and
William G. Martin, $500.
After the books and papers Of the com.
pany had been taken to the District At
torney's office last night II was admitted
by the officials that complaints regard.
ing Lilly's dealings had been coming IN
for the past month. II was said also
that the Federal authorities had received
many letters from persons claiming thai
they had heen unable to obtain stocl