The Washington herald., 1920-12-03

USED THREATS
New York District Attorney
Criticized at Arnstein
Bond Trial.

T. Dooling. Of New York, whose
testimony is being psed in the
prosecution here of Jules w.
(Nicky) Arnstein and his three
Washington codefendants in the
disappearance Of s5.ooo.ooo in Wall
Street bonds. came in for adverse
criticism yesterday. in testimony
offered during the trial. The testi-
mony concerned the operations Of
Sullivan and Company, the stock
brokers accused of disposing of the
stolen bonds.
David w. Browder, former chief
clerk for Sullivan and Company's
New York branch, testified that As
sistant District Attorney Dooling
threatened to imprison him IL he did
not talk about the deals Of Sullivan
and Company.
Tells Of Threat.
The witness said that Dooling
summoned him to. his office more
than twenty-five times and finally
threatened to have him dismissed
from his job unless he talked.
Browder declared Dooling also
threatened to have his father dis
charged from his position with the
Federal Reserve Bank.
Questioned by Attorney William
]. Fallon, Browder said that Dool-
ing wanted him to say: 'T had seen
Arnstein in Sullivan and Company-s
office and also in cafes with Sulli-
van, Bowles and Etsterday."
The witness further claimed that
he was deprived of his liberty in
Dooling's office from o'clock one
morning until 2 o'clock the next
morning.
Many times, Browder said, he
went to Dooling's ONCE and was
told that the assistant district at
torney would not need him that day,
but that later on he would be
needed.
Tells Of Brokerage Operations.
Browder was asked what he knew
about the methods then in vogue
among brokers with regard to the
handling of customers. He replied
that some houses put up 80 per cent
Of the purchase money for invest
ors. leaving the remaining 10 per
cent for the customer to pay.
The unusually high interest rates
charged in the fall of 1918, when
money was tight" sometimes ex-
ceeded 80 per cent, he said. and this
burden was passed on to the Gus
toner from the broker.
Dooling was characterized by
Browder as being rough" and
NOISY" in his manner of talking,
especially when he urged Browder
to expose" Arnstein and his al
legged associates. He denied. how
ever, that he had been forced to
talk.
Daniel Jacob, also a former en-
ploye of Sullivan and Company,
stated that Bowles warned him not
to talk, because he might incrimi-
nate himself. Examined by T. Nor
ris Wampler. counsel for Bowles
and Sullivan, Jacob admitted that
Dooling had todd him to watch his
step" when he talked about Arm
stein.
Feared Prosecution.
Jacob said that he thought Dool-
ing meant by this that he himself
might be prosecuted IL he refused
to speak freely.
The witness further stated that
Saul Myers, of New York. counsel
for the National Surety Company.
had told him he would be fixed up
all right" after the trial was over.
The surety company, he stated,
went on the bond of some of the
implicated in the huge
theft Of bonds.
Testimony tending to show that
the New York authorities adopted
a third degree" system for wit
nesses in the bond theft case in
order to scare them into a full and
used by the accused did not cause
the surprise that was expected from
such testimony.
Another .Master Mind
Dooling was accused of being the
master mind" who originated and
developed this special brand of
third degree" ordeal for tsubborn
witnesses. Scores of men, 1t was
said, were summoned to Dooling's
New York office and put through
the third degree" to persuade
them to talk about the bond theft
after being threatened with various
indignities.
The prosecution did not attempt
to discredit this testimony.
The trial will be resumed Monday
at 10 o'clock.