The Washington times., 1920-05-04
EASTERDAY TELLS
Of BOND THEFTS
o. C. Broker Says Sullivan Was
Forced to Sell Loot by
Death Threat.

NEW YORK, May 4,-Frightened by
tbs arrest in Washington OF WINFIELD
Williams. who was connected win the
office of David W. Sullivan there
ana angered by Sullivan's refusal 70
dispose of more stolen bonds' Juies
w (NIckyl Arnstein threatened 10
Kin him and Sullivan, w. w. Easter
day, OF Washington, declared IN
confession filed in the Federal court
here. x.,ho
! I. termed the "man behind the
screen in the $50 600, 900 bond thefts
as that OF Sullivan. was made In the
7 form Of testimony before United
p! states Commissioner Gilchrist IN 'he
! Arpstein bankruptcy proceedings
Threat at MeetinE.
Easterday GAYS the threat was made
~ a meeting Of sullivan. fasterday,
Arnstein and Others in a rosdhouse
an. the Boston Post road last OCTOBER.
AFTER sullivan had disposed OF some
1900 900 worth OF stolen securities for
, Arnstein and "Nicky" Cohen.
sullivan had apparently grown
weary, or wary, OF borrowing money
from reputable banks in Washington.
Boston. Philadelphia and Baltimore on
stolen securities obtained from mys-
terious sources by Arnstein and
Cohen. -
00o. 900 in securities and wanted Sui
liyan to negotiate their disposition As
he had the proveious loot. According
to Easterday's confession. sullivan
said at the Boston Post road confer
epce:
"Arnstein, am not going to
49, StY.H nm Il
am going to take as much out or
the bank as I can and you fellows
can have II. I don't want 1t I'm
through"
AnEered Arnsteaa.
whereupon Arnstein is alleged to
have retorted:
you are, like hell. through. We
have got those securities and -
ii, you have got to get rid OF them.
We've gone SO far you have got TO
20 further. don't want any -
double crossing here or I'll kill you
In a minute. II i couldn't do it-h
Il am locked up-there will be
plenty more Of my gang could do It,
And later Arnstein is said to have
added:
'Don't you ever open your mouth
about this or you will be taken -
quick"
Easterday testified that he told
Arnstein his threats were "a lot OF
hull" which brought another volley
of oaths from the master mind"
after which he calmed down and
allowed he had been trtfle excited.
Easterday said that Arnstein told
him. in the presence Of Sullivan. that
he not only had $4,000 worth OF
bonds in his possession at that time,
but that he could obtain $1O.OOO,OOO
additional IL necessary. All OF the
bonds, according to Easterday. Arm
Stein admitted, had been stolen by
messenger boys for Wall street firms
: No mention Of the conversation re-
lated by Easterday is made in the
testimony of Sullivan. taken before
Commissioner Gilchrist March 10.
- Confirms Sullivan.
yesterday also testified that while
Sullivan and Cohen were comforting
,at the table in the roadhouse up on
Boston Post Road. Arnstein had said
10 him that Dave made terrible
..Iip" when he disposed of the stolen
security to Williams, and which even
tually brought about the uncoVer1ns
of the Arnstein-Cohen-Su and
CO., pact to dispose of $780, 900 worth
OF stolen securities.
frssion of Sullivan several days ago
before Commissioner Gilchrist was
confirmed both by Easterday and Nor
man S. Bowles. of Washington,
member of the firm of Sullivn & Com
rany. The latter said, however, that
lie knew nothing about the relations
OF the firm with ArnSein and Cohen.
Easterday denied he conducted ne
Eotiations with Cohen or Arnstein in
which it was agreed at the meeting
in the Breton Hall Hotel on the night
Of Columbus Day. 1919, that Cohen
would receive IS per cent of the face
value of the stolen securities from
sullivan, after the latter had disposed
of them through loans in banks. He
said neither Arnstein nor Cohen ever
spoke to him about the arrangement,
hut that Sullivan had told him all
about il soon after Sullivan received
from Cohen in Washington a few days
later the first batch of stolen securi-
ties, on which $4,000 was realized
at the Riggs National Bank in that
city, and of which Cohen received
$4,000.
All OF those testifying before Com
missioner Gilchrist have been asked
if they handled any of the bonds
stolen by Benjamin NJ. Blink owitz. who
was murdered near Milford, Conn.
by a gang said to have been hired
by men involved in the bond thcfts.
Not Aware of Thcfts.
So far as IS known mono OF those
examined had any knowledge of the
bonds taken from the murdered lad
by the assassins except Bowics, who
said he had reason to believe a man
in Cleveland was in possession OF