New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-03
Boys Story
Spurs Hunt
For "Nicky''
tcoatinusd from psss ens)

tive sergeants Gegan, Mayer and
Brown returned from their fruitless
search for him in the upper reaches
Of New York State.
Mr.. Myers believes Arnstein is in
Cleveland, 9. city in which a number
Of the bond theft trails were found to
terminate. The fugitive is known to
have been there about the time that
Mr.. Dooling obtained the first indict-
ment against MIN. He was then stop
ping at the Hotel Winton, but when
representatives of the New York Police
Department reached the hotel he had
fled.
Two Men Detailed
The confessions Of .Gluck and Furey
furnished Mr.. Myers with information
that led to the arrest and detention Of
James Keane and James Haines. Both
men are being held in the House of
Detention under 10000 bail each. Mr..
Myers said the two men recently came
here from Canada and at one time they
we're in the employ of the Burns De%
tective Agency.
The examination Of witnesses in the
bankruptcy proceedings will be re-
sumed to-day and continued through
the week. Mr.. Myers said Fannie Brice
would again be called before Commits
sioner Gilchrist within the next few
days.
The confessions of Gluck and Furev
gave Mr.. Myers the information on
which he was able to piece together
the fabric of the $5,0O0,O0O bond plot.
Their statements showed him that the
part played by the Wall Street runners
was only the first episode in the plot
and that after the boys had committed
the robberies and turned their loot
over to Arnstein and Cohn, the latter
marketed large portion of the stolen
securities through the brokerage firm
OF David w. Sullivan & Co.
This. has been known to the police
here for many weeks, but it was
caused the lawyer to take steps to
bring Sullivan himself before Com
missioner Gilchrist. Sullivan 4 Co.
maintained Offices in Washington, D.
c., and New York until January of
this year when they went into bank
ruptcy.
In order to get Sullivan to como
here from Washington to testify Mr..
Myers was forced to promise him i'm
lnunity from arrest while he was with
in the jurisdiction Of the local courts.
The former broker was not inclined to
answer questions until Mr.. Myers ex-
that Sullivan's firm had handled large
sums in stolen securities.
He then admitted that he had had
dealings with both Arnstein and Cohn
and that it was the stolen securities
they turned over to him that for q
time saved Sullivan G. Co. from finan-
cial ruin. Business reverses, Sullivan
said, forced him to accept the financial
relief that was offered if he would
handle the stolen bonds.
Fake Purchases Recorded
Sullivan's statement to Mr.. Myers
covered more than 200 typewriter
pages and told how nearly $2,500,000
in securities, stolen for Arnstein and
Cohn by messengers and runners, had
been disposed of in small lots at hardly
one-fourth their actual value so far
as the returns to Arnstein and Cohn
were concerned.
He told Of how these securities were
for loans and how, to conceal the H.
legal transactions from honest EN-.
bought under fictitious names wers
recorded in the books OF Sullivan q
Co. He described how the stolen bonds
were passed by Arnstein & Cohn tc
him in saloons, on street corners and
in railroad stations.
Sullivan testified that between Octo'
Der IA and November 10, last year, he
received from Arnstein and Cohn about
100000 worth Of stolen securities
which he pledged as collateral for loans
with bapks in New York and other
cities. The money from these loans
amounted to about $250,OO0, and Of this
Arnstein and Cohn received $125,000.
Sullivan said his first meeting with
Arnstein and Cohn occurred in the bal
Of the Breton Hall Hotel, Broadway
and Eighty-sixth Street, on the night Of
October II, 1910. Three days later, h;
said, Cohn met him in Washington anc
turned over to him $4,000 in securi
ties. These were pledged as collatera
with the Riggs National Bank in Wash
ington for loan of $4,000
NJ Getting Cohn later in telegraph Office
he gave him $4,000 Of this money
This was in accordance with an agree
ment Sullivan said he had made will
Arnstein and Cohn in the Breton Hal
Hotel.
Sullivan testified that at the time h
met Arnsteln and Cohn his firm wa
facing financial ruin. He said he go
in touch with the two alleged maste
crooks through w. w. yesterday, nov
under indictment here, who was the,
manaper Of the FIRMS Naw YorL ofP;re