New-York tribune., 1920-03-06
Arnstein Here
In Few Hours
Says Dooling
Assistant Prosecutor Asserts
Fugitive Will Be Brought
Back by NY. Police; Loss
of $4,000, 900 Denied
sNicky' Reported Located
Surety Company Official
Hears He Is Not Far
Away; Detectives Found

AACdTS He Is lNOI L ar
Away; Detectives Found
Assistant District Attorney John T.
Dooling said again last night that Jules
W. Arnstein would be brought into New
York by Police Department detectives
within few hours.
You will have a chance to see Arm
stein right here in the District Attor-
ney's office before many hours have
passed." Mr.. Dooling said to newspaper
men.
Bernard J. McGinn, head of the claim
department of the American Surety
company, announced that when Eugene
r. McGee and Detective Sergeants
Gegan, Mayer and Brown left here last
Friday night with the supposed inten-
ton of meeting Arnstein .he four men
were followed by one of the company's
detectives.
Mr.. McGinn said he had received
telephone call from this detective, who
SAID ne had located not only Arnstein,
but also MCGEE and the three New
York detectives about whom consider
able anxiety has been felt in official
circles here. Mr. McGinn declined to
name the town in which his detective
had located the quartet, but said that it
was not more than ten hours from New
York
Refuses to Arrest Man
The American Surety Company's Le-
tective, according to Mr.. McGinn, in
formed the Chief of Police of the city in
which he made his discovery and 5ug-
gested to him in view of the accusa-
tions against '"Nicky" it might be good
| idea to arrest him. He also pointed out
to the chief that the three detectives
were married men, and that their fam
lilies. had been caused considerable con-
Germ by their long absence.
The chief, it appears, had been too
busy. reading the latest news from the
baseball training camps to devote his at
tention to the Arnstein case and refused
to make an arrest unless requested to do
so by the District Attorney in New
York
This situation was communicated to
Mr.. McGinn by the detective, and the
former called up Mr.. Dooling and gave
him the full particulars, he said.
When questioned about this angle of
the Arnstein search, Mr.. Doolng me,e-
ly-reiterated his former statement that
"Nicky" would be brought in within
a few hours. He admitted that he had
had several telephone conversations
with Mr.. McGinn, and said that the
tective had rendered valuable assist
ance in the bond theft cases, but he
refused to say whether he had requested
any chief of police to arrest Arnsteiu
and show the three detectives now to
get back to New York. He also refused
to speculate upon "Nicky's" probable
whereabouts.
$12,O0O,000 Total Denied
Mr.. Dooling denied that he had said
that the security thefts reported in the
financial district would totai $12,O0C,-
900.
81 would need an adding machine
and great deal of time to figure up
the aggregate bond losses" said MI.
tempt even to approximate the total.
| have given out no figures in this con-
nection. l will say, however, that $12,-
100000 is much too high"
Officials in position to know have
said that the bond thefts would not
exceed $3,000,000. At the office of the
National Security Company and the
that the published estimates of the
bond losses were too high. While no
specific figures were available, Mr..
McGinn said that the American Surety's
losses would not reach 81 ,O0O,O ,OO0 w.
i. Griffin, vice-presdent of the National
Security, was also inclined to believe
the estimates were extravagant.
Mr.. Griffin gave out the following list
Of losses covered by his company
lied bond thefts began:
Whitney & Co., S178,O00, taken by
the messenger Binkowitz; Prince &
Co., $4,000, involving the messenger
Teeman; Levinson G. Co., $141 900, in
which the messenger Jablowsky was
concerned, and Hartzhorn e. Battelle,
$4,000.
Much of Loss Recovered
OF the Levinson e. Co. loss, Mr.. Grif-
fin pointed out, 1000 has been recov-
cred, and the full amount recovered
will eventually reach 900. The
loss suffered by Hartzhorn & Battelle,
he said, has been wholly recovered.
The total losses involved in the rob-
berries, therefore, Mr.. Griffin said, is
S258, 900. The National Surety Com
pany, Mr.. Griffin asserted, has suffered
no other outstanding losses within the
period concerned. Other large surety
companies have failed to report any
surprisingly large losses within the
last four months.
At the Office of the National Surety
Company it was stated that definite
movement is under way among the
surety companies to, prevail upon the
governors of the New York Stock Ex-
change to adopt scheme OF clearing
house for bond transactions. The
method would be largely patterned on
the clearing house maintained by the
banks. Bonds would be carried to the
clearing house at certain times Of the
day only, under heavy guard. No boys
would be employed. The messengers
would consist entirely Of veterans of
me Police Department and men of de-
tcctivc experience. The expense would
be borna co0peratiYelY hY the houses