Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-11-30

Defense Wins First Victory on
Courts Rule in Arm.
STEMS Case.

Counsel for the defense scored the
first victory at the trial Of Jules, alias
'Ntcky," Arnstein Of New York. Wilen
W. yesterday. David ". Sullivan and
Norman S. Bowles, charging with con-
spiracy to bring stolen securities into
the District Of Columbia, before JUS
tice Gould and Jury in Criminal Divi-
sion l. The defense objected to a re-
quest Of the prosecution that the United
States attorneys office be permitted to
examine the papers, said to have been
unlawfully seized at the brokerage
offices of Sullivan & Co., in New York
The papers had been brought to
Washington by Assistant District Attor-
ney James T. Dooling of New York.
Court Denies Request.
Justice Gould decided to deny the
request Of the government and d.
rected that th@ papers remain in the
custody OF Mr.. Dooling for the pres
ent. The court reserved decision on
the admissibility of the papers until
an offer should be made to use any
of the documents when Mr.. DoolinY
should be called as a witness. The
papers had been brought under a
subpoe ma issued by the defense, and
the summoning party was entitled to
have the papers remain with the wit
ness.
The court declined to grant a mo-
ton of the defendants that Mr.. boo
ling be required to surrender the pa
pers to the accused.
... First Witne.. Called.
The first witness offered by the
prosecution to prove the alleged con-
spiracy was Michael p. Drain, former
manager of the Washington office
OF Sullivan Co. Drain identified a
picture of Nick Cohn. one of the men,
indicted, but who has never been
located. as the person whom he knew
by the name of Wall and who brought
to the office of Sullivan & Co. securi-,
ties of stock, which were later found
to be included in the securities stolen
from New York brokers. Cohn. the
witness said. stated that he wished
to open an account with the brokers
and directed that 100 shares of steel
be purchased for his account He
deposited E>lmber of shares of stock,
which Sullivan ordered the witness
to take to the Riggs Bank and de-
post as collateral for a loan of
; - Drain Secured the Loan.
Drain said he secured the loan on
the stock and was told by the de-
PENDANT Rowles to send IS, 600 Of the
amount to the New York office of
Sullivan & Co. The other $4,000 was
retained by Bowles. the witness de-
clared Drain said he did not know
Conn, and that the latter had lust
happened into the Office and asked
opening statement claimed that by a
prearranged plan as part of the al
teged conspiracy Cohn was sent nv
the other defendants with INSTRUCTIONS
to ask for Drain.
Cnder cross examination Drain adj
h
and Bowles to Cohn, and that he ash
ca a commission of $4,000 for obtain
ing the new customer, which sum wa.
not paid to him.
M. Cahill II Called.
James A. Cahill, vice president ~
me Commercial National Bank. was
the next witness. He testified that h.
NAG known Bowles for many year,
and that the accused had a good repu.
eation. and that the Transaction bv
men 'ne pank advanced $4,000 or
had all the searrnarkss Of clean bust
when the bank ATTEMPTED to a,.no.,
o. the securities it was
notined that stop notices' had bee-
posteQ with the transfer agents. Thia
snsS;. the nrst thing to arouse the
Vn another occasion, the witness
SAID. a quantity of stocks were re-
ceived by the bank from a brokeraee
nrm IN New York attached to a sirot
draft for, 100000. The bank sold the
STOCK and credited. the proceeds to
tne account Of Bowles. There was
nothing suspicious about this trans
action, the bank official said.
Snaries w. Worden. vice president
or the Continental Trust Companv
testified that Bowles. after opening an
account with deposit Of IS, 600. asked
Tor the loan of $4,000 on certain Sc
cur1ties, which have since been iden-
tined as included in the missing
stocks from New York. The bank
,ouno II necessary to call the loan
curtties were sold and the proceedx
credited to Sullivan 4 Co. The &C
count was later closed by the broker.
age firm withdrawing ita haIance