New-York tribune., 1922-12-27
Business Man
Evangelist Held
In Bond Fraud
V. II. Arnold, Who Preached
Here, Arrested at Bay.
side OH u. s. Indictment
Returned In Wisconsin

Victor n. Arnold, who was born In
Bristol, England, and rose from the
position Of messenger boy In Hamil-
ton, Ont, 20 be a reputed millionaire
and banker in Madison. Wis. and ere.
ated a mild sensation in New York last
November by engaging Town Hall for
a series Of lectures on q new wow Of
Christianity, was arrested yesterday in
his luxurious home az Bayside, I. J..
The arrest was made By two deputy
United States marshals on an indict-
ment returned by Federal grand jury
in Madison, charging Arnold on thirty
one counts with using the mails TO
defraud. THE retired banker and ac-
tive new religionist was held in t25, 900
bail by United States Commissioner
MeGoldrick for examination on jan
uary 9.
Declares His Innocence
Arnold was arrested by Deputy
United States Marshals Frank Bian-
culli and Peter Marquardt. He was
found In the study Of his Bayside
home, the training quarters Of Fred.
die Welsh when he was worlds light
weight boxing champion. With him
were his wife, three daughters and
his son-in-law, J. II. Hansberry, all Of
whom lived with Arnold on the Ave
and a half acre Bayside estate.
Arnold declared his innocence 10 re-
porters last night, following his com
mitment 10 the Raymond Street Jail
He said he had been guilty Of no
wrongdoinR and had not been informed
that he had been indicted or that he
was wanted by the authorities in Wis
consin.
At the Federal government Offices IN
Brooklyn a statement was given out
20 the effect that Arnold had been in-
dicted on a charge Of "willfully, unlaw-
fully and fraudulently entering into
a scheme In violation Of Section 2i Of
the Penal Code, and with being a fu-
gitive from justice"
The Federal authorities said Arnold
was one Of the organizers OF the now
defunct Madison Bond Company. II
is alleged that this concern, Of which
Arnold was the president, sold seven
bond issues Of a total OF more than
81, 100000, with q guaranty 10 pur-
chasers Of per cent interest The
bonds, the government agents allege,
were without proper security. and II
is further alleged that the three
trustees" named in the company's
circulars we're paid employees Of the
firm. The vice-president and manager
Of the concern, IL was said, have
pleaded guilty 10 embesxlement and
are awaiting sentence. They are nj
legged 10 have made statements impli-
eating Arnold.
Pathfinder on Religious Road
The "busineas mans evangelist,
which was the title by which Arnold
preferred 20 be named, was unknown
in New York until he appeared quietly
on Sunday, November B, last, At Towr
Hall. before a small audience which
had gathered 10 hear the hrst Of his
advertised series Of addresses on "Ihs
True Christianity"
Last night Arnold said his Arm In
Madison had been forced into receiv'
ership. Had he been permitted 70 carry
on. ne said, he would have adjusted
the affair without loss 10 investors.
MADISON, Wis, Dec. 20 (By Th,
Assoeiated Press) Victor H. Arnold
formerly president Of the bankrupt
MadIson Bond Company. posed as I
beneheent Santa Claus 70 Madison
needy 70 the amount Of $4,000 q yea
ago.
Charged Partners With Stealing
In the spring Of 1921 Arnold charge'
oficlals Of the bond company with EN-
bezzlement. he told stockholders tha
dishonesty had placed Affairs OF th
concern In a critical condition, an
asked that ell stock be turned over .
him, with his personal note, runninl
/ for five years, as security. A total
sei3.00O worth Of stock Is alleged Z
have been transferred. giving Arnoi
control. Charges Of dishonesty agains
company osieials broke down.
Al Christmas Arnold placed unilm
tied credit with local stores In orce
that the eity's needy could buy wha
food they needed and two tons OF coa
for each family. Later his 0ompan
purchased a church, turned Il into a
| oface building and began selling 80
curities on . larger scale.
Arnold also rented another churc
and gave lectures on Christianity !
business.