The New York herald., 1922-05-11
CHASE BANK GUARD
AND2HELD in THEFT;
$440,0OORE7RIEVED
Arthur F. Chase Admits
Mailing Paper in Place
of Liberty Bonds.
MAN AND WIFE SEIZED
John Vardaman and Singer
Found in Savannah With
Passports to Europe.
LOOT IN ST. AUGUSTINE
Detectives Praised for Quick
Work in Clearing Mystery
First Known April II.
LOOT IN ST. AUGUSTINE

Ranger and for sixteen months en-
ployed as a guard in the registry de-
partment of the Chase National Bank.
officials of the bank and to Detectives
August Mayer and Grover Cleveland
Brown of Inspector Coughlin's staff
that he stole the $500,000 in Liberty
bonds which disappeared from the
bank on April II.
John w. vardaman. a former en-
ploye of the bank. was arrested at
Savannah, Ca. where he and his wife
were registered at a hotel as John
w. Hollis and wife" He lad Joined
his wife in Savannah two days ago.
Vardaman had been to st. Au-
gustine, Fla. according to the de-
tectives, and had left $4,000 in Lib
erty bonds in a safe deposit box. The
box was opened last night and the
bonds recovered. Vardaman and his
wife, the latter singer known as
"Ferne Hollis" lived at 152 West
Forty-ninth street Chase, who was
not married. boarded at their apart
ment.
He served two enlistments in the
army and saw services in the Philip
pines and along the Rio Grande. Var
daman, who is 80 years old served ten
years in the army and was mustered
out at the end of the war with the
rank OF captain.
Paper Sent In Mall.
The half million dollars In bonds
were to have been mailed on April II
from the Chase Bank to the National
Shawmut Bank, Boston. On opening the
package, however. the Shawmut Bank
found it was filled only with slices of
newspaper. The package had been
made up at the bank In the regular way
and placed In the mails through the
registry department OF the bank. 1t
was insured.
The loss of the bonds became known
when Bigham, Englar & Jones. Ga Wall
street, lawyers for the insurance COM
pany. sent out through the ticket SER
vices the numbers OF the bonds. There
were forty-seven $1,000 bonds and
thirty $1,000 bonds. For several days
the police were not notified.
When the case did come before the
police Chief Inspector Lahey and In
spector Coughlin assigned Detectives
Mayer and Brown. who worked with
Detectives William Fay and John F'itz-
patrick of the Old Slip station.
William Wagner. assistant superin-
tendent of Pinkertons National De-
tective Agency, also took part in find
ing the bonds and making the arrests.
Had Passports for Europe.
All employees of the registry depart
ment together with their relatives and
associates, were checked up by the de-
tectives. 1t was learned that Chase had
had communication with Vardaman by
letter. and that Vardaman had left New
York two days after the package was
mailed from the bank. He went to
st. Augustine. Fla, and took a safe
deposit box In a bank there.
Two days ago Chase. followed by de-
tectives accompanied Mrs. Vardaman
to the PENNSYLVANIA station and put her
on train bound for Savannah De-
tectives followed. She met her husband
in Savannah. and they went to hotel.
where they were arrested. AS soon as
the Chase National Bank was notified
OF their arrest and the recovery of
$440, 600 in bonds from the safe deposit
box in st. Augustine. Chase was ar
rested
In the box also were found passports
for Italy and Switzerland issued TO
Vardaman and his wife under the
names of Hollis. Another passport.
made out to "A. c. Franklin" bore the
photograph of Chase. Other papers IN
dicated they were to sail for Europe
In a few days.
When Chase was arrested he would
not believe at first that Vardaman and
his wife had been captured. He said
he would not talk about the case at
all because the name of a woman was
involved" Later. however he signed
confession. according TO Detectives
Mayer and Brown. in which he said
he had taken tho 10000 package and
substituted the. fake package He said
he handed the bonds that night to a
man in Trinity place, at the rear of
the bank. though he refused TO admit
that the man was Vardaman.
Detectives Mayer and Brown said
vardaman had sold two OF the $4,000
bonds, one at st. Augustine and one at
Savannah. He sent $500 by telegraph
to his wife the day she left for Savan-
nah, and yesterday he telegraphed $500
to Chase. but II was intercepted by de-