The New York herald., 1922-12-27
TOWN HALL UPLIFT
APOSTLE ARRESTED
Victor III. Arnold Charged
With Using the Mails to
Dcfraud.
BOND SALES INVOLVED
Thirty-one Counts in Indict-
ment Found at Mad
ison, Wis.

Victor II. Arnold, who hired the
Town Hall, In West Forty-third street,
last month for fifty-two Sunday morn
ing talks on simplihed Christianity,
was arrested last night at his home in
Bayside, l.. I. He is charged with
using the mails TO defraud purchasers
of bonds from the Madison Bond Com
pany of Madison, Wis, OF which he
was president until he turned to
new career as a lay preacher.
He had no idea that he was wanted"
until Frank Biancula. and Frank Mar
quardt, deputy United States mar
shals. appeared with the warrant. 1t
was issued at the request of the Fed
era, District Attorney at Madison. who
sent here a certified copy of an indict-
ment containing thirty-one counts.
The deputies took their prisoner TO
Brooklyn and Commissioner McGoldrick
held him In $3.50 bail for examination
on January Z. Unable to get the bond
ltSl HIEnt lie was lOCheO up III tnt ray
inond street Jail. He said that he was
81 years old. was married and had four
children.
Calls Charge Frameup.
Mr.. Arnold readily identified himself
as the man who had been preaching the
gospel OF truth and honesty In the Town
Hall and paying the deficit when a col
lection taken each Sunday morning cai'g
| TO amount to 800. the rental of the
hall. He said that the charge was a
"frameup' and that he had been doing
his best 10 bring the real culprlts TO
Justice and had even appealed TO the
Attorney-Gcneral OF the United States
The indictment was returned by the
Federal Grand Jury In Madison on De-
cember 90. IT alleges that Arnold helped
TO organize the bond company. that the
company sold aeven bond issues OF
$1,000. 900 par value and realized about
S750.000, and that. without proper Sc
curity, Il guaranteed the payment Of Z
per cent interest.
Arnold was unknown In New York
until. without flourish of trumpets. he
appeared on the stage I'm the Town Hall
on November ) and announced that he
had rented the hall for Sunday morning
preachments for a whole year.
II was reported that when the Madt-
I son Bond Company was organized. in
I 1917 ne took $3.50. 900 Of the $500. 900
capital stock. Thousands of persons IN
Wisconsin and neighboring States were
losers when the company failed in
1 February, 1922. At the bankruptcy
! hearings Arnold said that his chief
asset was his integrity.
RumbIings From Home.
At the, outset OF his effort to convert
New York 20 wholesome walks and be-
! llefs rumblings OF trouble were heard
| from Madison. Ills answer was that
II he was guilty he should not be al
lowed 10 run at largo and hire a hall
for religious meetings
Arnold explaining his mission here.
said taat he started the search for
spiritual truth about twenty years ago
and found IL, and that he wanted TO tell
others how It was done. This truth
was: 'T believe God Is n personality.
Christ is q personality. lie is the only
snointed Son OF God. the only author
ICED teacher through whom man can
reach God"
The officials OF Town Hall issued th.
following statement last night:
when Mr.. Arnold applied for the hall
for his Sunday morning services he
I
Bank as reference and referred to ono
Of tho vice presidents Of the bank to
vouch for him. His credit having been
satisfactorily established the hall was
rented TO him on a weekly basis at the
usual rental fec. The rent having been
paid promptly each week. the Town
Hall has no claim against Mr.. Arnold"
Special Dispatch 70 Trtr Nrw YouK HrRltp
MADISON, Wis. Dec. 26--FederaI in
dictment OF Victor II. Arnold. former
president OF the Madison Bond Company,
contains thirty-one counts relating re-
spectlvely 70 three separate plans Of
| financing alleged 30 be fraudulent,
whereby Il Is charged Arnold's clients
were adversely affected TO the extent
OF s613.000.
The first plan alleged was an issue
I and sale OF collateral bonds Of tho com
pany wherein II Is charged Arnold caused
! the bonds 20 be misrcprcsented In advor-
tising circulars. retaining control OF the
collateral security for purposes Of
manipulation and used the malls 10 pro-
mote sales Of bonds, made mostly TO
Wisconsin Investors and banks.
The second plan alleged was the pur-
chase of tho outstanding stock of the
company by Arnold. in the spring Of
last year, when he caused the arrest
OF company officers on tho charge Of
embezzlement and by campaign
through his agents secured nearly all
the stock IN exchange for five year notes
Of the Victor II. Arnold Company Of
Illinois. tho notes being guaranteed by
Arnold personally and secured bY de-
posit OF the stock in a Chicago Trust
and Savings Bank
Tho third plan alleged was his move
last March 60 obtain the outstanding
collateral bonds OF the Madison Bond
Company and other bonds sold by that
company. endeavoring by n series of
letters TO exchange his unsecured rcr-
aonal nvc year notes for the bonds. IT
was at thle point the bank commissioner
Marshall Cousins, intsryeneds