New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-04

Plans Made for Disposal
"At the time of our meeting Arm
stein refused to talk in the presence
of third party. | don't believe |
have ever talked with Arnstein alone,
but | have with Nick Cohn."
yesterday said that after this first
meeting he did not see Arnstein again
until a month later, when they took
taxicab ride in Central Park to discuss
the disposal of certain securities.
yesterday admitted that between o.
tober 2, 1919, and about month later
Sullivan handled more than 100000
worth of stolen securities. He cor
roborated the statements made by Sui
Ivan to the effect that Is per cent of
the proceeds from the stolen bonds was
to go to Arnstein and Cohn and the
the remainder to Sullivan e. Co.
Eastcrday described one occasion
on which he went to a roadhouse near
New York k, with Sullivan, Arnstein and
Cohn. He testified that Arnstein said
at this time: "I've got $4,000, 900 worth
of that stuff 1t is unlimited, five
millions or ten millions"
He said he could get them in ten
minutes" yesterday declared. cat that
time Arnstein said his name was Nick
Arnold and that a famous actress named
Fannie Brice was his wife"
Meeting With Fallon
yesterday was asked whether he had
ever met Eugene f. MCGEE, law partner
OF William j. Fallon, attorney for Arm
stein.
yes" replied the witness. "He came
to Washington to get Sullivan out, and
later Fallon came down. MCGEE came
With bondsman, who was Jeremiah
OLeary. | told Niece and Faf1on
everything that is on the record, and
MCGEE said it was a 'cinch,' not to
worry and to go to sleep. MCGEE or
Fallon said that they represented Arm
stein, and that you fellows up here
were on a dead trail. This was about
Lincolns Birthday"
Mr.. Myers asked terday whether
he had told Fallon that David w. Sui
lvan g. Co. had negotiated 100000 in
securities. The witness replied that
Falon had been informed of this. He
said the two attorneys said that they
had received between $500 and $500
from Arnstein.
Speaking of the possible connection
Benjamin Binkowitz. the Wall Street
runner who was found dead in Con-
necticut after he had disappeared with
$178,000 worth of bonds, Easterday
said he had asked Fallon if any of the
stock handled by David w. Sullivan &
Co. was part of that taken by the slain
messenger.
Fallon replied, according to Easter
days testimony:
not to dare~to touch any of that
stock"
"Meaning the Bnkowitz Stock?" Mr..
Myers asked yesterday
"Yes,' the witness answered.
"HoW did you happen to bring up the
subject of the Binkowitz murder?" the
lawyer asked.
yesterday replied because I
thought that Mr.. Doolng would use
that as hammer on somebody's head,
and put them in Jail without a bond
if he could possibly figure it in any
way. That is the only thing that wor-
ried me in the transactions-that |
would be grabbed without bond"
In the testimony given by Sullivan
before Commissioner Gilchrist Easter
day is charged with the responsibility
for the financial difficulties in which
the Sullivan firm found itself Just
prior to it's dealing with Arnstein. This
is Sullivan's description of yesterday:
"Easterday is kid, even if he is
twenty-nine or thirty years old. He is
d boy. HIS OLD man spoiled him. He
has fairy dreams so far as business
ventures go, He is the damnedest liar
| ever met. He will lie about things
that don't amount to anything. That
10 one reason that | never had any
faith in him in the business. AS fast
as | would take some money out of the
deals with Arnstein, yesterday would
lose it in the market. If he didn't
lose it he would spend it. He had
great idea of making a fortune on a
few thousand dollars"
Fugitive Sought Near Westbury
The search for Arnstein was again
conferred on Long Island yesterday,
when detectives employed by the New
DIRK surety companies which have
made good losses sustained by banks
and brokerage houses as a result of
bond thefts, received reliable Informal
ton that both "Nicky" and his pal
Cohn had been seen on train near
Westbury
The Arnstein man-hunt, when it was
at its height about month ago, was
toward various localities in
ong Island where the fugitive was