New-York tribune., 1921-06-26
retired Police
Sergeant Held
lin Stock Fraud
hniel Z. Kelly and Partner
sCharged With Swindling
1.-Two Persons Out of
I$52,o87 i'm Market Deals
fade Sales Over Phone
'lleged Company Said to
IHave Cehducted Opera
lltions i'm Walters Name

Daniel T. Kelly, retired sergeant Of
thk New York Police Department, was
a1ested yesterday at e7 Wall Street,
bN deputy Sheriff Sinnott in connection
wah two suits hrought against him and
Wklter G.. Gutterson, with whom he has
been doing a stock brokerage business,
aVrarious addresses, as Oppenheim &
CD. Kelly was known as Mr.. Open
h@m sr. to the two plaintiffs, who al
leke they were defrauded out of $37, $50
ard .$15,s37, respectively, by the false
approximations of the defendants in
thk sale of certain alleged worthless
sticks.
Kelly, besides using the name of OPP
p4sheim in his brokerage business, one
off the plaintiffs alleges, falsely repre-
sefSted to him that he was brother of
Mfi oppenheim, of oppenheim, Collins
$780, dry goods merchants.
One of the plaintiffs is Samuel Met
calf, Of sos Seventh Street, Brooklyn,
VIE has an iron foundry at 25 Seabring
Street, that borough, and is said TO be
fnillionaire. The other is Abraham
AsPhilips jr., manufacturer of bride
irAns at 1919 Pitkin Avenue, Brooklyn,
ami living at IS Barley Street.
II Did Business Over Phone
th 10th cases it appears that most of
Thu business of Oppenheim & Co., who
h9d no formal introductions to their
alleged victims, was done over the tele-
phone. "Mr. Oppenheimer sr," it is
alleged, doing most of the propaganda
wefk over the wire in presenting the
gltstering opportunities for a fortune
totbe made in the stock market.
sThe negotiations with Mr.. Metcalf
began on September II, 1920, when Mr..
Obpenheim sr. is said to have called
hAh on the telephone and introduced
hAnself as senior member of the
Brokerage firm, which he said had
membership in the New York Stock Ex-
cYange for twenty years. He was pro-
mpting the stock of the Sligo Iron and
Steel Company, it is alleged. owning
ssVenty or eighty melting furnaces.
Mstcalf says he was told that the stock
wkk selling in the open market at $2A
asShare, was listed on the Chicago
Stock Exchange, paid 8 per cent year,
AID that dividends were distributed
every three months. The proposition
s&anded good to him, Mr.. Metcalf said,
asa he agreed to buy 100 shares for
$4,000, receiving reduced price from,
hss strange broker.
sThere were frequent telephone calls
bssween September II and December 8,
1890, says Mr.. Metcalf, suggesting fur
TIER purchases, resulting in Mr.. Met
csf OCCURRING 100 more shares. w.
slReported Purchase by Bethlehem
sAbout the same time Kelly, il is nj
legged, telephoned that the Bethlehem
Steel Company had bought the entire
Plant and business of the Sligo con-
cam. AS soon as this news was flashed
ofFr the stock tickers it is said he as
ssfted the price Of Sligo would go to
So the same as Bethlehem. So pleased
WIS Mr.. Metcalf with this piece of news
that he says he at once paid $3.50 on
hed agreements of purchase. Next day,
The plaintiff says, he was informed that
+Ae great news Of the Sligo purchase of
tEe Bethlehem corporation had been re-
Leased and Mr.. Metcalf reserved 575
more shares.
RThen another plan was hit upon, it Is
Alleged, to induce Mr.. Metcalf to In
ctease his holdings. On March Is,
1921, a man, alleged to have been an
agent of the defendants, 'phoned, say
fISS ne WAS MT. Ciarke, OF clarke, An
dsrson & Co., New Haven, and that he
had customer who wanted to buy
1850 shares of Sligo stock at 80. This
tipie Mr.. Metcalf. who paid 20, agreed
I'd sell at 80. But he did not have
s9ficient stock to fill the order Of Mr..
Ctarke's customer.
v Turned Over $4,000 in Bonds
The alleged Mr.. Clarke knew a way.
Hf is said to havessuggested that ME-.
MAtcalf buy aA additional 1000 shares
f41n sOppenhefm & Co., and thus COM
pkfe the sale. This the plaintiff says
hS did. "Mr. Oppenheim jr.," alleged
s9l of the senior member of the firm,
called in person and received from Mr..
MHtcalf $4,000 in Liberty bonds to
cdYer his stock purchases, according to
the complaint.
srhereafter "Mr. Oppenheim sr." in
t|fsted Mr.. Metcalf in the stock o.
tHs Pom Reil Company, Inc, another
wbhderful stock" This concern was
To manufacture non-alcoholic bey-
efages Upon encouraging representa-
w. Skk-~------S.ssSSsSl. k-~---SssSSsSl.