Evening journal., 1922-09-13
SI65,OOO DEBT
in WOLFF POOL
Customers Had TO Give 80
Days Notice If They
Withdrew Money
INTERLOCKING
is SUSPECTED

NEW YORK. Sept. 1s-An involun
sary petition in bankruptcy was filet
yesterday against Maurice NJ. Wolf
describing himself as "a dealer II
listed securities" with offices at 24t
West Fify-first street and branch
es in Philadelphia, Baltimore. VIII
mington, Del. and Rochester. The
petition set forth that he has la
bilities OF 100000 and assets OF
$4,000. Of which $1,000 is cash and
$4,000 represented by securities.
Voln was one OF the biggest dis
cretionary or blind pool operators
in New York. His is the fourth
blind pool TO receive the attention
OF the law within a week.
A bankruptcy petition was filed
against Wolff IN Baltimore also. His
Baltimore Office is the fourth blind
pool office TO go into the hands of
receivers in that city within a week.
Two of the other Baltimore con-
Germs the Fidelity Finance Com
pany and the Community Finance
Com mpany-closed their doors here
without notice and postal inspec-
tors are now looking for their Of
ficers.
Wolff's methods followed closely
those OF the other pool operators.
His advertising laid great stress
upon the fact that he dealt only in
securities listed on the New York
Stock Exchange. His circulars also
sought TO give further semblance
OF solidity by reference to New
York Stock Exchange members
with whom he assured his custom
ers he had done much business. He
mentioned six stock exchange
houses in this connection.
From only one OF those houses
was II possible 10 obtain a check
up on those statements yesterday
afternoon. That house stated that
Woiff had sought TO do business
with them, but that his request had
been rejected and that the house
was not aware he was using its
name 10 increase his business.
VOLTS customers contract,
though not so rigid as the Win
throp Smith & Co. contract, called
for complete control OF customers
money and the right to retain funds
thirty days after notice of with
drawal of account. His commission
was one-third of net profits.
Wolff's publicity included a state
ment for the month of July showing
ten deals around S1sO.OOO each in
Studebaker, several in Coca-Cola
and United States Rubber amount
ing to about $4,000 each. and four
$4,000 trades in Union Oil. with
profits of s2S.000 and losses OF
S14.575, leaving a net profit OF
s13.505. or Q per cent for the month.
Winthrop Smith & CO. seem to
have taken the idea, for that con-
cern came out With similar sheet
for August. in which they estimat-
ed on the monthly basis a years
profits OF 100 per cent A further
OF interest is Indicated
BY the fact that the postal inspec- /
tors are inclined to believe that |
there was an interlocking interest
IN the Community and the Fidelity
and also by the fact that
It least four men who were connect
ID with Fidelity are known TO have
oeen connected with the National
Operating Company, a bankrupt
'ool outfit in Baltimore.
While no complaints are filed
With the postal inspectors here
against Wolf. Inspector ]. J. Doran1
iaid yesterday that Wolff brought a
customer to him in an effort to
convince the customer that he was
not about to consolidate with the
Community outfit. Doran added
that Wolff was at great pains TO
convince him that his company was
operating on the square, and even
undertook to persuade him to in
vest with him.
Doran's latest communication
rom Wolff was Immediately after
he arrest last Friday OF DR.. Leon
lrd X. Hirschberg OF winthrop
smith & Co. on a charge of using
he mails in furtherance of scheme
o defraud. That letter contained
copy of Wolff's contract. with this
What did tell you about Hlrsch-
erg?"
The Bankruptcy petition against
voiff was filed by Effie ID. Walter,
18th claim OF $500 for moneys
dvanced to said Maurice NJ.
volff for the purchase Of securi-
es, which securities have never
cen received or deliveredi" c.
ellie Stanton and Leila Thompson ,
18th claims OF $500 each based
pom similar allegations. Their at {
'rney is Archibald Palmer, 320 A
roadway.
Judge Martin T. Manton appoint
1 Edward j. McCrossin receiver
nd fixed bond at $4,000.
The losses in the pool operators
probably will be tre- {
iendous. The postal inspectors be- 4
eve that the losses in winthrop !,
mith & Co. will be more than ST. :
10000. II was learned yesterday !,
hat the Fidelity liabilities are .
more than s1.OOO.OOO and assets so !,
ar run TO s413.15. Community ) !
liabilities are yet unknown. u
m mn EnT Ngrrxy p