The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1920-05-22
.NICKY" ARNSTEIN
Sketch of the Notorious Bond
Thief Now On Trial In
New. York

New York, May 1S--Jules W. (Nic- !
XVI Arnstein. who surrendered to dis 7
trict attorney in New York last week, !
after being sought by the police of two
continents. and who was placed on .
trial Yesterday in United States court !,
in New York as the alleged mead OF q !:
band # swindlers who by connNance
with bank and brokerage messengers,
are said to have stolen from $1,000 /
600 10 zs5.o00,o00 in bonds and other
securities xom Wall Street firms, is
the f1usba, of Fannie .Srice. an act /
ress. who he married in 1917. He dis
anneared fror, New York, where, he
maintained two lavishly appointed
anartments, besides {. country home
at Huntington. L. l.. ON February II I
last. since which time he has been re-
ported in various parts of the country
or ON the eve oe "surrendering to the
authorities.
Arnstein is the son of a New York
business man and is 42 years.old. The
nolice say he is AZ we'll known in
France aud England as in the United
States.
He is flashy dresser. Once, when
arraigned in court, ne appeared in a
blue serge suit. a polka dot necktie
ard a pink silk shirt.
Eight years ago Arnstein was ar
rested in London and extradited to
New York for swindling William E:
Sinks. Of Springfield. Mass. out Of
SIS 900 by. means of worthless stock.
Sentenced to two years IN Sing Sing
prison, Arnstein served less than
year. Six Others members Of the
gang were later arrested in San Fran
cisco, Toxic and Baltimore.
Shortly after Arnstein's disappear
ance last February. Federal judge
in Newt York issued an order enJoin-.
ing 500 or more banks and repositories
in the metropolis from disposias of
any money. stocks. bonds or other se-
curities Arnstein might have on de-
posit in them. He was. known to have
six safe deposit boxes in various pub
lie valuts. according to the police,
Arnstein, together with his associates
obtained the stolen bonds and other
securities from the messengers and.
runners and took efherl to various
cities where they We're put up az col
lateral for loans. The boys or men
who committed the thefts received
less than one-quarter Of their value
and. in some instances, nothing at all.
More than 100000 was said to have
been "buried'' in Canadian banks in
this way About S750,000 is said to
have been traced to Philadelphia,
Washington, Baltimore and Cleveland.
Assistant District Attorney Dooling.
Of New York, who has been prominent
in the investigation OF the Arastein
case. said that in four months, from
October 1919, there had been more
than 500 bond ,robherics,. ranging
from $500 to s17S.000. a''d that most
of them were. office" jobs that is.
doned by employees of banksland brok-
erage houses. He said the system"
had connections in every large city
Cleveland. Chicago. or San Francisco.
he declared, were forwarded TO fences
in. New or other cities who put them
up as collateral for loans.
Hidden strings are being pulled"
declared Bernard j. McGinn. manager
Of the claim department of the AM
erican Surety Company through un-:
derground channels which seem to
undermine most Of the financial dis
trict. Leaks. it seems, are taking
place within stock exchange houses
and it looks as though an organized
intelligence service is in operation"
Arnstein's name. according to the
police records. came into prominence
in the case last February in connec-
ton. with the arrest in New York of
Joseph and Edward Gluck, two
brothers: also Herbert and Ru-
dolph Bunora and Edward Furey,
bank and brokerage messengers in
Wall Street He was specifically
charged with receiving $4,000 worth
of Crucible Steel certificates. stolen
from a New York brokerage house.
Some of the prisoners stated that Arm
stein and his alleged partner, Nicholas
Cohn. for whom rewards of $4,000 are
offered, had received from them and
disposed of more than $2,300,000
worth Of bonds and other Vegetables.
Shortly after Arnstein's flight last
February, hearings were held in the
Federal court in New York to have
him adjudged an involuntary bank
rupt. It was there charged that his
assets consist Of many thousands Of
dollars. A few weeks later, a New
York lawyer, who said be was counsel
for the fugitive, reported he. had met