The evening herald. (Klamath Falls, Or.) 1906-1942, 1920-06-02
FUGITIVE CROOK
HAS v|CT|M|zED
TWO.CONT|NENTS

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NEW YORK. June 2,--Julcs ".
("Nieky") Arnstein, sought by the
police q two continents as the al
legged head of a band OF swindlers
who. by connivance with bank and
brokerage messengers, are said TO
have stolen from si.5oo.00o to S5,-
600 900 in bonds and other seeuri-
ties from Wall street firms, is the
husband OF Fannie Brico. an actress,
whom he married in 1917. He dis
appeared from New York, where he
maintained two lavishly appointed
apartments besides a country home at
Huntington. l., l., on February IL
last. since which he has been report
ed In various parts OF the country or
on the eve OF "surrendering" to the
authorities.
Arnstein Is the son OF a New York
business man and Is ~ years old.
The police say he Is as well-known
in France and England as In the
United States. Circulars offering
reward for his arrest said he FIRE
queuted high-class hcteis and gam
bling places" lie Is u flashy dress
er. Once. when arraigned In court,
he appeared in a blue serge suit. q
polka dot neektie and a pink silk
shirt.
Eight years ago Arnstein was ar
rested in London and extrsdited to
New York for swindlins william Z.
shinks Of Springfield. Mass. out Of
$4,000 by means Of worthless stock.
Sentenced to two years In Sing sinE
prison. Arnstein served less than =
year. Six other embers Of the band
were later arrested In San Francisco.
Toxic and Baltimore.
Shortly after Arnstein's disappear.
ance last February, a federal Judge
in New York issued IN order cntoin-
ing 500 or more banks and deposit
tories In the metropolis from dispos-
Ing Of any msney. stocks. bonds or
other securities Arnstein might have
on deposit in them. He was known
to have six safe deposit boxes In vari-
Gus public vaults. According to the
police. Arnstein. together with his
associates obtained the stolen bonds
and other securities from the mes
senEers and runners and took them
TO various cities where they were put
up as collateral for loans. The boys
or men who committed the thefts re-
ceived less than one-quarter OF their
value and. In some instances, nothing
at all. More than $500 900 was said
to have been buried" In Canadian !
banks In this way. About &75o.ooo
is said to have been traced to Phila- .
deiphia. Washington. Bsitim re and
Cleveland.
Assistant District Attorney Dooling
Of New York. who has been promi-
nent in the investigO ion Of the Arm
stein case, said that In four months
from October. 1919, there had been
more than 500 bond robberies rang |
ing from $500 to si7s,000 and that
most q them were "office" Jobs. that ]
is. done by employees OF banks and !
brokerage houses. He said the ''sys- /
TEN" had connections In every large l
city In the United States. Bonds stol- !
en- In Cleveland. Chicago or San Fran 1
cisco. he declared. were forwarded !
to fences In New York or other cities
who put them up as collateral for
loans.
Hidden strings are being pulled"
declared Bernard J. McGinn, man
ager OF the claim department OF the 7
American Surety company, Through I
underground channels which seem to
undermine most Of the financial dis
trict. Leaks. II seems. are taking
place within stock exchange houses |
and It looks as though an organized
intelligence service is in operation"
Arnstein's name. according 10 the
police records. came into prominence
In the case last February In connec-
tion with the arrest In New York OF
Joseph and Edward Giuck. brothers.
Herbert and Rudolph Bunora, and
Edward Furey, bank and brokerage
in Wall street. He was
specifically charged with receiving
$4,000 worth OF Crucible Steel GER
tfiicates stolen from a New York
brokerage house. Some OF the pris-
oners stated that Arnstein and his
alleged partner, Nicholas Cohn, for
q