New-York tribune., 1919-11-19
David A. Sullivan, of Con-
solidated Exchange, Is
Taken i'm Connection
With Runners Robbery
$4,000 Involved
La Specific Charge
$4,000 in Certificates,
Deposited as Security,
Alleged TO Be Stolen

David A. Sullivan. a member of the
Consolidated Stock Exchange, was ar
rested yesterday in his Office, 10 Wall
Street, on charge Of grand larceny.
The American Surety Company CO.
operated with Alfred j. Talley, Acting
District Attorney, in an inquiry which
preceded the arrest. Thefts Of Sc
curities by Wall Street runners aggre-
eating 100000 arc said to be involved
in the investigation.
Sullivan, according to Deputy Police
Commissioner Lahey, has admitted
dealing with most of twenty-seven
Wall Street firms who have reported
to the police in the last six months
thcfts of securities aggregating $780,
900 in value. He asserts, however, that
he knew nothing OF stolen stocks and
bonds.
Two More Brokers Sought
= owe expect to get on the trail of two
more brokers who were involved in
an attempt to dispose of at least $500 :
600 worth of s.olen securities" Mr.
Talley said. Eventually thefts aggre-
eating almost an incredible amount
may be uncovered and the. thieves ar
rested"
most astute band of criminals was
at work under the direction of high
intelligence familiar with financial af-
fairs, Mr.. Talley said. He is convinced
the brokers to whom he referred were
subordinates, employed in an organized
series of thefts and hold-u the rank
and file of the thieves nc'uding Wall
Street runners, chauffeurs, footpads and
possibly safe-crackers.
"Thcir operations" he said, "indi-
cate highly elaborate scheme for the
disposal of stolen bonds by series of
covering-uo sales and resales all over
the country by unscrupulous brokers
working in cooperation with expert
enced and high-class thieves"
Stolen Bonds Used as Collateral
Stolen securities, Mr.. Talley went on,
turned up months after the theft and
in widely separated parts of the co m
try, generally in banks where they had
been left as collateral for loans. This
such stolen property has been eff
GENTLY organized that the securities
are offered as collateral at about the
same time in numerous cities, bor-
rowed on up to the limit and then left
with the banks, where they are discov-
cred only after the expiration of the
rer;od Of the loans.
The specific theft with which Sullivan
is che rged is that of two 100 share Ger
tifcates of the Crucible Steel Com
pany, valued at S45 900. Sullivan is &C
cused of acting in concert with Frank
Parnell, a runner, in the theft of this
stock and with others whose identity
is not known.
Detectives Recover Certificates
Parnell was employed by Clark,
Charles & Co., 1855 Broadway, on Oc-
tober 28. On that day ne was sent
out with two Crucible Steel certificates
which he was to deliver to Hartman
e. Co. at i'll Broadway, few doors
away. He never returned to the Offices
Of Clark. Charles e. Co., nor were the
certificates received b. Hartman & Co.
Detective Sergeants Brown and
Mayer traced and have recovered the
two certificates, which were with the
Equitable Trust Company OF New York,
where they had been placed for trans
fer. One of them, it was found, had
been Used in Washington as col ateral
,or loan of $4,000 obtained from the
National Savings & Trust Company, of
that city, by Winfield Williams. Win
field Williams now is held III $4,000
bail in Washington on charge OF
taking stolen property into the District
OF Co. umbia.
Sullivan, according to the story he
is said 20 have told when questioned
last night by Mr.. Talley, said he used
TO conduct "a fashionable cafe" in
Washington. According to an identit
cation made by a Washington detectiv.;
Sullivan used to tend bar there.
He told Mr.. Talley, who had all his
hrOI ,Chf trio
torney's office under subpoena, that he
had deposited $4,000 of Worthington
Pump stock with J. E. Lynch, the secre-
tary of the Consolidated Stock Ex
change. as bond for his dealings
through the exchange Mr.. Lynch was
summoned to the District Attorneys
office and brought with him the ccrrif-
Gates Of WorthiNgton Pump stock. Ac-
cording to the police, these certificates
also were among those Ii ted with them
by the twenty-seven FIRMS as having
been stolen in tNe last six months.
Customer Left Stock. Says Sullivan
Su livan said, according to Mr.. TAI
ley, that the Worthington Pump stock
had been left with him by a customer
as col ateral. He did not explain how
he happened to deposit in his own
Eame with the Consolidated Exchange
oee ities !eiI win nlni as collatefa..
After being questioned by Mr.. Talley
Sullivan was taken to headquarters,
where he was interrogated by Deputy
Commissioner Lahey, who showed him a
photograph of a man known as East
erday." Sullivan recognized it at once
as that of a man he had known for tif
teen years. Sulivan's employees are
said to have admitted that the original
of the photograph had been in his Office
recently; According to Mr.. Lahey