The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-09-13
BLIND POOL FAILS;
DEBTS OF S165,O0O;
Fourth in A WEEK
Wolff, Who Had Four
Branches, Dealt in Listed
Securities
CONTROLLED ALL CASH
Customers Had to Give 30
Days Notice if They With
drew Money.
INTERLOCKING SUSPECTED
Postal Authorities See Signs
of Concerns Working in
One Big System.
SUSPECTED

An Involuntary petition In bank
ruptcy was filed yesterday against
Maurice NJ. Wolff. describing himself
as "a dealer in listed securities" with
offices at GAG West F'ifty-first street
and branches in Philadelphia. Balti-
more, Wilmington, Del, and Roch-
ester. The petition set forth that he
has liabilities of 100000 and assets of
900. Of which $4,000 is cash and
$4,000 represented by securities.
Wolff 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 re-
ceivers in that city within a week
Two of the other Baltimore concerns
the Fidelity Finance Company and tho
Community Finance Company-closed
their doors here without notice and
postal inspectors are now looking for
their officers.
Old Pool Style Is Followed.
VOLTS 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 fur
Their semblance of solidity by reference
to New York Stock Exchange members
with whom he assured his customers
he hal done much business. He men
toned six stock exchange houses in this
connection.
From only one Of those houses was 1t
possible to obtain check up on .hose
statements yesterday afternoon That
house stated that Wolf had sought to
do business with them, bu: that HE re-
quest had been rejected and that the
house was not aware ne was using its
name to Increase his business.
VOLTS customers contract, though
not so rigid as the Winthrop Smith &
Co contract, called for complete control
of customers money aud the right 10
retain funds thirty days after notice Of
withdrawal OF account. His commission
was one-third of net profits.
Details His Big Profits.
VOLTS publicity included a state
inent for the month OF July showing zen
deals around $4,000 each In Stude-
baker. several IN Coca-Cola and United
uphhar ar,ou,fiv~ .,.,.,t
900 each. and fpur $4,000 trades In
Union oil, with profits Of $4,000 and
losses OF s14,57i, having . net profit Of
s13.5 or per cent for the month
Winthrop Smith & Co. seem 20 have
taken the idea. for that concern came
out with similar sheet for August. in
which they estimated on the monthly
basis a years profits Of 100 per cent. A
further community OF interest H. in
dicated by the fact that the postal in
spectors are inclined to believe tnat
there was an interlocking interest n the
Community and the Fidelity company
and also by the fact that a. least four
men who were connected with Fidelity
are known TO have been connected with
the National Operating Company. a
bankrupt pool outfit In Baltimore.
While no complaints are filed with the
postal inspectors here against Wolff. In
spector j. J. Doran said 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
pursuade him TO invest with him.
Doran's latest communication from
Wolff was Immediately after the arrest
last Friday of DIR. Leonard X. Hirsch-
berg OF Winthrop Smith & Co. on a
charge OF using the mails In furtherance
OF a scheme TO defraud That letter
contained copy of VOLTS contract,
with this postscript:
What did | tell you about Hirsch-
berg?"