New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-04-14
BANK DEFAUITER, DYING,
IS GUARDED BY POLICE
VILLAGE Officers Watch PalatIaI
New Berlin Home Of F. 7.
Arnold, Confessed Embezzler.
NOW CHARGES BLACKMAll
Efforts of New York Gang to Ex-
tort Money from Him Brought
Admission of Guilt,
He Declares.

Utica, y. V, April l3.-Vilage police to-
night are guarding the beautiful bungalow
adjoining the stone dwelling I'm New Ber-
lin which for years has been the home
OF Frank T. Arnold. the defaulting cash
Ter Of the Fist National Bank Of that
town. now lying at the point OF death. The
vigil Is being maintained under orders from
the national bank examiners. The attend
ing physician, DR. ]. =. Noyes, Issued a
statement to-day that Arnold Is suffering
from complete nervous breakdown and
from a complication OF diseases.
Arnold had declared. IL II said. that his
confession OF embeZZling s25000 OF the
funds OF the bank was forced by the at
tempts Of a gang Of New York blackmail-
ers TO extort money from him on pain OF
exposure.
1t is further stated that Arnold has ad-
nitted hiring "A band Of New York safe
breakers 10 go TO New Berlin and break
into the vaults Of the institution. BY this
means. IT is said he hoped to destroy the
books and papers. and thus cover up the
evidences Of his shortage. The failure OF
this scheme and the subsequent threats or
the gang whose aid he had invoked are
declared TO have led to Arnold's confession.
According to the story told to one OF the
directors of the bank, Charles II. Holland
under arrest charged with attempt to black
mail Arnold. is the representative of the
gang that bounded him with threats of ex-
posure II he did not come TO terms. The
publication of several alleged incrimnat-
ing letters which the gang had In Its pos
session was held over his head, Arnold
says. and he did his best at the start to
meet their demands.
Threatened with Exposure.
Early last month man appeared in New
Berlin and demanded an audience with
Arnold at the bank. The man gave his
name az Charles II. Holland. and he -four
ished two letters which he said would Gre
ate a sensation were they 10 be published
in the newspapers. The fellow said he
had certain certificates Of stock TO sell. and
he told Arnold that he was the man select
ed 10 buy them.
Arnold tried TO ascertain the nature or
the letters, but the fellow was too crafty
to show them Quailing under his secret
knowledge of guilt Arnold bought the stock
certificates TO the amount OF over 5000
Later this same man made a demand
upon Arnold for $1,000. He pointed out to
him that the letters which he held in his
possession were Of sufficient Importance
and of such scandalous nature as to blast
the career and bring disgrace and dishonor
10 the cashier should their contents become
public property.
arnold was willing TO pay the $4,000. but
the time allotted him was too short in
which to raise that amount and in despera-
ton lie consulted Arthur w Morse, the at
torney for the First National Morse ad-
vised Arnold to turn the whole matter over
to hnn. with the result that Holland was
placed under arrest when he again came
tc New Berlin.
In Hollands possession when arrested
Continued op serond page second column.