New-York tribune., 1920-03-17
Police Search
For Arnstein
To Be Probed
Banks and Surety Firms
Retain Counsel to Inves.
J, tigate Movements of Men
Who Trailed Fugitive
Many Peculiar Incidents
McCee, Lawyer for Alleged
Plotter, To Be Quizzed
in Bankruptcy Case

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Dissatisfied with the failure Of the
police to arrest Jules W. ("Nicky")
Arnstein. practically all the big surety
companies and several we'll known firms
in the financial district have combined
and retained counsel to conduct an in
vestigation, which they believe will lift
the veil of mystery that has enveloped
the activities of both Arnstein and his
alleged pursuers since Lincolns Birth
day, when the former disappeared.
While no official announcement to
this effect has yet been made, The
from a thoroughly reliable source. In
making this move the surety companies
end the financial houses have placed
practically unlimited means at the dis
posal of their counsel. and have
ordered him to go ahead regardless Of
expense and the feelings of persons.
official or otherwise, who might be
placed in an unfavorable light by the
investigation.
London Firm to Aid
While the firms which have COM
hined to support the probe are mostly
those that have suffered financial
losses as result of bond thefts COM
mitted in this city since last Novem-
her, it was learned that Lloyds, of
London, is a party to the investigation
and will share in the expense.
The inquiry into the circumstances
surrounding the sudden disappearance
of Arnstein and the fasco in which
the efforts of the police to find him
have apparently ended will be merged
with the Federal bankruptcy proceed
ings which have been instituted
against the fugitive by the National
Surety Company:
These proceedings. in which Fannie
already has testified, will be resumed
to-day before Federal Commissioner in
Bankruptcy Alexander Gilchrst. The
first witness to be called will be Eu-
gene F. McGee, who, with William J.
Fallon, is "Nickys" legal representa-
tive here.
McGee, it is said, will be questioned
at length concerning the events that
transpred after he left the Office Of
Dooling on the night of February 23
with the expressed intention of guild
ing Detective Sergeants Gegan, Mayer
and Brown to Arnstein's hiding place.
When the quartet left the prose-
cutor's Office a Tribune reporter was
informed that McGee was to lead the
detectives to Arnstein, who was to sur
render and return with them to the
District Attorneys Office He then was
to be released in 100000 bail
Mr.. Dooling said that he expected the
party to return in every few hours"
After some thirteen days had passed
some point close to the Canadian
border and returned to New York in
dividually. They did not bring
"Nicky" with them.
McGee To Be Quizzed
Gee will be asked by Saul s. Myers, at
torney for the National Surety Com
pany and also for Edward H. Childs,
Federal receiver for Arnstein, to re-
count all of his experiences after leav-
ing Mr.. Dooling. He also will be ques-
toned as to the agreement arranged
by himself and Mr.. Fallon whereby
"Nlcky" was to surrender. An effort
will be made to reveal what it was
that prevented the arrangement from
being carried out.
Courts Building yesterday in connec-
ton with another case and admitted
that he had been sup9naed to appear
before Commissioner Gilchrist to-day
After the lawyer leaves the stand
to-day other witnesses will be called
who, it is said, are expected to throw
even more light on the steps that
were taken by the police and the two
lawyers to locate Arnstein.
In the course of the examination Of
witnesses an effort will be made to
ascertain the present status Of the
Arnstein pursuit and whether or not
the police have abandoned their efforts
to find him.
We want to have this mysterious
lull in the hunt for Arnstein explained
to u.s. said an official of one of the
companies interested in the bank
ruptcy proceedings. eve don't under
stand it. Individuals and companies
who have been the victims of bond
tnefts which they believe were en-
glneered by Arnstein are thoroughly
disgusted with the failure of the police
to find him and with the evasive tao
tics the authorities have employed in
dealing with the case
we also would like to know whether
there Is any connection between the
recent efforts of the police to mini
mIze Arnstein's Importance in the bond
THEFT plot and the letting down in
thelr efforts to bring him into the
jurisdiction Of the local courts.
We believe we can call witnesses
IN these bankruptcy proceedings who
can give us a lot of interesting infor-
NATION as to how Arnstcin kept a
couple OF jumps ahead of those who
were looking for him. The police even
Khew the number of the room in the
! Hotel Winton in Cleveland in which
Nlcky was stopping, but the fugitive
stls stppa'ehsly was ,apprised of the fact
mat they had this information. The
entire pursuit of Arnstein is studded
with peculiar Incidents" 'N00
Mr' Myers said last night that when
the bankruptcy proceedings are started
To-Day they will be continued until
every available fact concerning Arm
SENS s alleged connection with the
';a uond % piot mas been brought out. Fan
the stand toward the end Of tha waoI "
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