Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-11-20
FURTHER STOLEN
/ STOCKS FOUND IN
DISTRICT BANKS

Proceedings for Recovery of
Securities Started in D. C.
,, Supreme Court.
DEVELOPMENTS today in the Wash
fnston end of the New York case in
volving the theft and disposal of ap-
proximately S1,00e.o0a in securities in
Wall street in recent months in
cluded:
Instituting of proceedings in the
District Supreme Court for recovery
of alleged stolen securities said to
have been hypothecated by Sullivan
& Co. with local banks.
Discovery that three other Wash
ington banks have been victimized by
dealers in securities said to have
been stolen through connivance of
messengers of New York brokerage
firms.
Assertion by Inspector Clifford Grant,
acting chief of detectives of the police
department, that additional arrests,
either here or in New York, were prob
able, as it had developed that many
persons were implicated in the gigan-
tic theft or series of thefts the first
tangible clues to which were unearthed
by Washington detectives.
May Exceed Million Dollars.
According to information fir. m New
York. District Attorney Swami and
the New York detectives assigned to
the securities theft case believe they
have discovered a clearing house for
the disposition of securities. worth an
immense amount, which have been
stolen from messengers and others in
New York's financial district in recent
months. Stocks and bonds stolen in
this manner, according to a list pre-
pared by Assistant District Attorney
John T. Dooling of New York. have
an aggregate value of more than
1000, 900. and New York dispatches
say this total will be largely increased
as additional reports are received.
Discoveries of collateral, said to
have been stolen in New York. back
of notes discounted in Washington.
has now been reported from five local
institutions.
In every instance so far reported
the securities have been properly in
dorsed and attested, and bankers do
not believe that the validity Of their
title can be questioned.
Certificates of stock pass from
broker to broker and from client to
broker without question when prop
erly Endorsed by the owner named in
the certificate, attested by q sponsor
as to the genuineness of the sigma
lures
The alleged stolen securities were
being delivered and were in form for
delivery when appropriated by the
firms runners.
Rsnkers Are peficap&
Bankers are reticent concerning the
transactions and feel that they have
come into these securities through the
recognized and approved methods of
business and that their rights should
therefore be protected.
While the decline in market values
since the loans here were made may
have lessened the margin of safety,
there Is said to exist a good equity in
the property which the former owners
~ the securities, when that has been
determined. may claim.
inAivfduals other than bankers,
known to have been connected with
the transactions, without knowledge
OF the securities being stolen. so they
cation.
Suits to Recover Stocks.
Proceedings to recover stocks said to
have been hypothecated by Sullivan &
Co. with two local banks have been in
stituted in the District Supreme Court
by the National Surety Company. Suit
IN repievin was filed today by the surety
tional Bank to recover 500 shares Of
Pennsylvania Railroad Company stock
valued at $12,s75.
A similar suit was filed Tuesday
against the Riggs National Bank to
recover 100 shares of Republic Steel
ration, valued at $4,000.
Others were implicated in the
handling of the stolen certificates as
agents OF Sullivan & Co." said In
spector Grant today. but the ques-
tion OF their having guilty knowledge
Oh the inert remains to be SEEM
Inspector Grant said he thought adj
ditionai arrests would be made before
the investigation is concluded. but
could not tell il they would be made
In New York or this city. The theft
was gigantic one, he added. and
many persons are involved in it.
May Resume Local Investigation
Last night the chief of detectives
e forn"H .u With acting District At
o'Brien over the ong-distance teIeA
phone in New York, the latter telling
OF Developments in the New York end
or the investigation and promising tn
SEND a list of the stolen securities. IT
is probable that Detective O'Brien will
return home tonight or tomorrow and
resume his investi cation here.
Norman 8. Bowles, lawyer and men,
Der or the brokerage firm of Sulli-
van Co.. who yesterday aft
ernoon, accompanied his counsel,
T. NJ Wampler. to police headouar-
tiers and surrendered to Inspector
sum of $4,000 later in the day.
When Mr.. Bowies reached the de-
tective Office he was told by Inspec-
ton Grant that certain certificates Of
stock alleged to have been stolen had
been traced to his firms possession.
was up to him to tell where he had
obtained them.
His reply, according to the chief of
detectives, was that he obtained them
from New York by registered mail
At Police Court, while waiting for
his bondsman to qualify. Mr.. Bowles
declared to Inspector Grant that he
had no idea any certificates handled
by the firm were stolen.
Claims to Have Been Victimized.
We've been made victims of a lot
of crooks in New York, who unloaded
the certificates on u.s." Mr.. Bowles
stated, according to Inspector Grant
Mr.. Bowles told a Star reporter
today that he had not yet learned
involved In the complaint He denied
that he told Inspector Grant he had
received any particular certificates by
registered mail but did say that some