New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-04
Sullivan, Scared by Bond
Deals, Tried to Quit, but
Was Forced to Keep
On, Says Ex-Manager
COhn Called Real
Mind in Big Thefts
Fugitive, Who Boasted of
$lO,OOO,OOO Loot, Is
Hunted ON Long Island

When David w. Sullivan, eX-broker
saw that his bond transactions with
Jules w. ("Nicky"D Arnstein and the
latter's partner, Nick Cohn, were going
to get him in trouble he made a des-
perate effort to sever relations with
the two alleged master crooks. With
this idea in mind, he came to New
York from Washington with w. w.
Easterday and met Arnstein and Cohn
in New York hotel. In taxicab the
four men went for ride in Central
Park, method usually pursued by the
two Nickys when they had matters of
Importance to discuss. Prior to this
ride Sullivan's firm, David W. Sullivan
G. Co., had handled thousands of dol
lars worth of stolen securities for the
Arnstein- Cohn combine.
While rolling slowly up the West
Drive Sullivan suddenly turned to Arm
stein and said:
"Arnstein, Pm through. l am not
for you, and Pm going to take as much
out of the bank as I can and you fell
lows can have it. l don't want it. Pm
through"
Threats Laid to Arnstein
Fear of losing his main "disposal
plant" for securities brought an ex-
plosive return from Arnstein.
"You are like hell through!" he
shouted eve have got those securities
and you have got to get rid of them.
You have gone this far and you have
got to go further | don't want any
double crossing now,sor III kill you in
minute. If l couldn't do it there
would be plenty more of my gang who
would do it for me. Don't you ever
be taken quick
The foregoing description of the
taxicab ride in Central Park was given
by Easterday in his testimony before
Federal Comm issioner Alexander Gill
christ jr. in the bankruptcy proceed
ings being conducted by Saul S. Myers
as attorney for the combined surety
companies of this city in an effort to
discover any assets that Arnstein may
possess. Easterday was the business
manager for David w. Sullivan G. Co.,
and it was through his efforts that
Sullivan, when the firm was on the
verge of financial ruin, got in touch
with Arnstein and Cohn.
Easterday's testimony, like that of
Sullivan, showed that the firm received
from Arnstein and Cohn more than a
half million in stolen securities and
placed them with various respectable
banking institutions as collateral for
loans. 1t was the money obtained on
these loans that kept David w. Sulli-
van q Co. from going to the wall until
January of this year. His testimony
was made public yesterday at the
Federal Building.
Sullivan Stayed in Ring
Sullivan's statements to Mr.. Myers
showed that after Arnstein had threat
ened his life if he withdrew from the
bond ring he continued to handle Sc
curities which were forwarded to him
in Washington from New York.
A further examination of the testi-
mony given by Sullivan before Com
missioner Gilchrist indicates that the
former broker believed that Cohn and
not Arnstein was the master mind"
behind the New York bond thefts. In
his testimony appears this statement:
retrospective Of the fact that you
want Arnstein, Cohn is the man you
want, and irrespective Of the fact that
Arnstein is high-class fellow; that
is, intelligent and has the brains to
put this through, Cohn is a more COM
mon sensed business man than Arm
stein. Cohn is the master mind if
there is any. | always figured Arnstein
as the counsel and Cohn as the prin-
cipal"
Another section Of Sullivan's testi-
mony made public yesterday described
a meeting he had with Cohn and Arm
stein in Hoboken when he was to turn
over some cash in return for bonds.
When Sullivan announced that he did
not have the cash with him Cohn be-
came enraged and threatened to strike
him. Arnstein, according to the testi-
mony, took no part in this row.
"This is Cohn's business, not mine,
Arnsten said, according to Sullivan.
"I'm just helping him." At this time
Sullivan said Arnstein told him he had
known Cohn for twenty years.
Easterday testified that Randolph w.
Newman, a lawyer Of 20 Broad Street.
was the one who placed him and Sui
livan in touch with Arnstein and Cohn.
His statement concerning the first
meeting is as follows:
"Arnstein was introduced to me in a
barroom about block from the Bret
ton Hall Hotel. Later we met Cohn.
We met through a telephone call from
Randolph w. Newman, who called us
up at our Washington office. He knew
our firm was very weak and said that
a man named Arnstein would turn
over some securities for considera-
tion which would help us out. In my
opinion he knew that the bonds were
stolen. Otherwise, if these bonds welc