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found huge beyond their fonddreams. They found: About $25,000 cash. thousand dollars in gotiable Liberty bonds. Six hundred and fifty thousand dollars worth of negotiable bonds owned by the correspondent banks and individuals who had left them for Non-negotiable bonds and stocks estimated at from $850,000 by Barkley millions by other investigators Banker Barkley stood to lose about $150,000 personally from the holdup He tried to minimize the bank first telling newspapers only $17,000 obtained explained wished to avoid run on the bank. It weeks before the people of was Lincoln knew much had been taken. Meanwhile the Continental National Bank bought out the looted bank, and its checking depositors were assured they would lose nothing. Loans of the looted bank were collected 80 per cent in few weeks Stockholders of the looted bank and the six small banks that had money in it for keeping, and about 200 persons who had securities stored. were the principal losers from the robbery Banker Barkley pasted the country with listings the stolen bonds Every bank, brokerage house and financial institution, large or small, honest or shady, was notified not to About $10,000 was spent in month by aggressive Mr. Barkley on this business. He hired Burns, Pinkerton and Omaha private detectives to trail the bandits. For six weeks no word was heard as to the bandits or the loot. Lincoln was beginning to believe the robbery "perfect Chapter III-Beginning Long Trail. to Minneapolis," mysterious telegram from New York rected E. Liukart, liquidating officer of the looted bank, "and you find out something about the may missing bonds." This was in the first days of November, 1930. In Minneapolis Liukart met Burns detective and was told to to room in prominent hotel. Alone in the room, the telephone rang. "How much will you give for the return of the bonds?' voice askedpossibly that of "fence" who had bought the bonds. "Fifty thousand dollars." "Give us $100,000 and you may have them." As proof the bonds were in their reach, the voice directed Liukart an office building, where listing of the brand and numbers of the bonds had been left mysteriously. After several more telephone conversations, in which he refused to pay the $100,000, Liukart left Minneapolis. Several days later Dewey M. Berlovich, Des Moines politician, was rested trying to sell $11,900 the Lincoln Liberty bonds to Chicago broker. Berlovich said "Earl Lawson" had given them to him to pay gambling debt, and added he was to meet Lawson in Chicago hotel room later that day. Police went to the with Berlovich. The phone rang. Supposedly Lawson was calling. Berlovich refused to answer saying he would not lure Lawson to the room, with possible shooting as "Come on up," policeman said after the receiver had been down some time. "Lawson" never came. It is believed now he was Eddie LaRue s.ught as the leader of the Burly Mr. Berlovich was taken to Lincoln and later released. Next day, November police entered the exclusive Harvard Club in New York, arrested slender Franklin Ferguson, Harvard graduate, New York lawyer who had been losing clients, health and financial He had tried to sell $15,000 of the stolen Liberty bonds to a New York broker. A charge of receiving stolen property still pends against Ferguson. Four months more passed and the bandit search stalled. O'Brien was arrested December 13, 1930, Minneapolis, and released when witnesses failed identify him. The mysterious "fence" who had made Liukart the offer was heard from no more. Five Texas criminals were arThe tracing of the lovich and Ferguson bonds to alleys. Behind the holdup was the nation's biggest criminal gang, which smiled the police methods of Neat braska, unaccustomed to metropolitan underworlds and their intricate interorganization. Losers were pressing Banker BarkWidows who had lost savings ley. the loot appealed daily to County in Attorney Towle Was there nothing to be done? The six country banks much of their surplus taken in the robbery, were desperate hear rumbles of the Lincoln after every major arrest in cache Chicago," Alexander G. Jamie, investigatory chief for Chicago's "Secret Six,' told Sheriff Condit. The sherto Barkley the Secret suggested and Illinois Bankers' Association, headed by Roscoe Saunders, be enlisted the bandit search Saunformerly headed the Iowa bankders ers' vigilantes that reduced bank robin that state sharply. 1931, Barkley began In working with Saunders, Emory attorney for the Illinois assoSmith, and his investigators, Roy Hal O. Kempster, Charles Touzinsky and others. Towle spread scores of criminal before victims of the photographs robbery. Seven pictures pointed to by many of the victims. "That's the Shelton gang of East St. Louis," Steffens said. 'Leftovers of Egan's the Cuckoos. Also some time the Burke gang. We know their hangouts.' Chapter the Trail Led. BEER flat in East St. Louis was A about to be besieged. Police machine the street guns front and alley behind. Bystandwere that morning of May 1931. The time had come, after weeks spyglass work by Steffens and assistants from neighboring flats, for the capture of several of the men whose photographs pointed to by the Lincoln vicwoman's club convention in hotel across the street was ordered stay "in although its wished to leave. The signal given, police by dozens surrounded the The the head of the bank gang. Witness flat. men side were ordered to come out. Nine after witness will say he was. No money benefiting few stockholders them came, hands up. They smiled, kidded the officers. Old-time hard- is worth recovery at the price of outraged ened criminals, they took their arrest with sophistication, sneered at the "There'll be no compromise with anything "hot" would be Towle retorted hung against them. 'If Winkler is guilty by any sound A tenth man, Ernest Rossi, worked ruse. He shouted from inside, "This guy's all right, let him go," if policeman were speaking. Then he appeared at rear door and the policeman waiting outside let him walk away. Later captured Rossi was investigated by Towle and released. Of the nine men, three finally were taken to Lincoln-Tommy O'Connor, Howard "Pop" Lee and Jack Britt. All were identified. O'Connor and Lee submitted jauntily to the test of lie detector machine. Prof. Leonarde Keeler of Northwestern university operated the machine, his "Were the torpedo (machine gunner) standing in front of the Lincoln bank that day?" "No, answered O'Connor, the pneumatic tube of the machine around his chest. The needle connected to the tube jumped. "He's lying," Professor Keeler whispered. The first test on big Lee indicated he was not lying when he denied being inside the bank. Keeler asked that he be further Lee refused. Britt refused to submit to the machine. All refused the truth serum offered by Professor Keeler. All were charged with the Lincoln crime. specifying 2½million-dollar robbery. Through special United States grand jury inquiry, Attorney Smith obtained confirmation from secret witness of the identity of part of the gang. That the Capone syndicate was behind it additionally established-a mob engaged in bootlegging, gambling, robbery, kidnaping, murder for hire and petty rackets in Chicago, Kansas City, Philadelphia, New Orleans, Los Angeles, and other cities. Chapter V-Two Gangsters Slain. body of a bullet-riddled man was found on country road near Red Wing, Minn, August 18, 1931. Harry "Slim" Morris, identified later as the driver of the bandit outside the Lincoln bank, had taken one ride too many. The same month "Tom" Slattery was killed Maryland while robbing bank. Some called him Gus Winkdouble, closely did he resemble Winkler. They were fellow ring members. Chapter VI-Mr. Winkler's Bond. AKE $100,000. Make million if you want No bond for me. The Big Boy himhigh self is my springer In jail at Lincoln, in September, Winkler was cocky on that point. He palmed his face from photogavoided the stares of the raphers, braska prairie folk. But of high bond he had no fear Nebraskans doubted Gus was as reported. They laughed powerful when his bond was fixed $100,000. They gasped when he made swarthy henchman had visited Gus in jail-Philip Capone's armed "dog. First D'Andrea had seen Burke in the Michigan then Capone and now Winkler. The triple play produced the bona almost in twinkling. Not many weeks later D'Andrea was sent to jail for revolver while Capone at his income tax trial in Chicago. Once more "on the bricks," sleek Gus was worried. Towle and Barker worked the squeeze play tried O'Connor and Lee and convicted them with eight identification witnesses apiece. Lawyers for O'Connor and Lee charged Winkler, Burke Bailey and LaRue were among the real bandits. out Burke and Lee They pointed strongly resembled each other. Talk of 'doubles' and mistaken identity filled cross-examinations. "There is an old saying, God hates double," retorted state's witness, the Rev. John Chamberlain of Eagle, Neb. "The man saw in the bank Howard Lee, and no other." O'Connor and Lee were sentenced twenty-five years each. Winkler desperate. chance has guy got, matter what his he moaned buddies. "I tell won't face farm jury in that He had an ace in the find out" promise to Towle the hospital. Chapter VII-Governor Bryan's Denunciation. Democratic governor of Nebraska sat in his regal room in the statehouse, room that would have flattered Louis and pounded the carved walnut desk. state of Nebraska is humilihe declared. posterous! I'll fight this mob chief his proposition to said Attorney has good alibi. This looks like the only chance recover the $600.000 negotiable Think what that would mean the losing stockholders. Think what would mean to the six struggling small Winkler just had offered to return the Lincoln bonds for his freedomsaid he would pay $75,000 from his gang's reserves to the "fence" who the bonds. accept, said Banker Barkley. "It's worth considering,' said Abraham Christianson Sorenson, Repubstate attorney general. "And compromise justice?" roared Governor This Winkler he'll be tried. If still guess, have lever on All along Winkler had said he was Buffalo during the holdup. Towle in said he had not checked this because of witnesses who had identified Winkler, and he wished particularly to get Winkler under charges first. Now with the Winkler offer spread in the papers, with losing bond owners urging him accept and editorials the possible sinister aspects of the deal, with the Chicago investigators eager to force the greatest pile of loot history from the gang had been after for years, was in quandary. was Hobson's choice. Even if checked the alibi and found it he would be censured if he released Winkler. "The mere offer by Winkler shows he has guilt, said one "and the of by the state unthinkable "It isn't guilt, it's freedom from witnesses who are almost anybody who resembles the bandits, Winkler defended. wouldn't face twelve Square Johns Lincoln this "It said another paper "that $600,000 can't be wrong. For that matter we were loser the bank, the would look in these times it meant one less hoodlum in the pen. Think what notoriety Nebraska would twitted another "by have so famous man Gus Winkler as guest in Warden Fenton's hotel few Towle returned from duck hunt. ing trip, and tried Jack were not The Winkler publicity, the claims of Britt's attorneys that the real bandits were the "doubles" yet had effect The jury hung, ten to two for acquittal. "Misled justice," Governor Bryan charged, 'because of the Winkler offer and its uproar of doubt. It should have spurned from the Early last December Towle announced he would Buffalo with Winkler. Steffens and Sorenson and check Winkler's alibi. stood up, Towle promised he would free same as impeaching his witnesses who have identified Winkler," Bryan on this move. December 11 Towle returned from Buffalo much publicity and gave out statement which read in part: am dismissing the charges against Gus because there is not sufficient evidence to convict him and because am satisfied in mind beyond any question of my own doubt that he innocent of the robbery the Lincoln National Bank Trust Company. Under the law and is not only my duty to prosecute but likewise to protect the the guilty, innocent. "Attorney General Sorenson has the evidence have and passed upon me his personal behas expressed Winkler not guilty of this lief is charge. realize the majority of the people have satisfied themselves of the of Winkler, not because of the evidence, which they know very little, because of the large bond he but his alleged Chicago connections made, and he was the in of the stolen actually possession tell he had good idea "He did us where the securities could be located and was willing help secure their return. This all he has ever indicated he would do, and any statehe intended paying $75,000 for ments them did not come from him or representatives. have been urged by close friends Winkler matter what prosecute no felt knew about his guilt. They or advise me that this was necessary political standpoint. But from has when am forced the time come man know to be innocent try want no more of the charge, obtained on such politics, nor prestige false premise. was called to conference Chicago, where strong arguments were Winkler's case should advanced why be dismissed he could secure irrespective of turn of the argued that from his It was guilt an economic standpoint the restoration of over million dollars in LanCounty would do much good caster To these and other these times. did not yield and flatly arguments to crime of viocompromise lence such as this was. few days later at second Winkler and his attorney ference stated ways of positively everybody of his innoconvincing urged to investigate cence, things. After investigating certain Dewey Ernest the alibis arrested in Texas and Rossi, five men arrested in this crime hunt, others and intended to released Winkler's alibis also.' investigate Towle explained the Continuing, Buffalo included hotel registration by Winkler under an assumed m. the day of name at testified the expert Winkler's Bufhandwriting dentist testified he had fixed falo Winkler's teeth that day and physician testified he had treated Buffalo the preceding and kler in following days. Argument that kler, airplane could have flown from Lincoln after the robbery and registered at Buffalo was by opinions of airmen that it was 10-hour trip by air. As for state's witnesses who might appear against Winkler, Towle explained that only one was now sure of Winkler's identification: two could not say positively; a fourth now believed LaRue, rather than Winkler, was the man he saw in the bank. The state's case was weaker than against Britt, Towle concluded. Besides, he added, have other definite that Winkler was not in this robbery, and I know it to fact." This was believed to be underworld information received by Towle from Secret Six investigators. Critics returned to the attack "He should have let jury decide." they said of Towle, "instead of taking responsibility on his own shoulders. Who is this hoodlum, Winkler, known bandit, bootlegger and gang chief, that he should receive such consideration after having publicly announced offer tantamount to buying his freedom?" A second jury that tried Britt also hung, ten two for acquittal. If Britt was innocent, some observed, were O'Connor and Lee. Their attorneys so claimed, and filed appeals. had to was an"Somebody Predictions that some other remark. would completely upfurther arrest actions against the set the legal so far are combandits prosecuted mon in Lincoln. County attorneys of Nebraska in their annual meeting December Towle's action in the Winkdilemma and elected him president of their association. Chapter VIII. The Return of the Bonds. January 5, Sergt. Steffens of the "Secret Six" Roy detective force was awakened by telephone call at his Chicago home "Go down the street half block," voice said, "and you'll find the stuff under light pole." Steffens called together several armed assistants, went out and found battered suitcase under light pole. contained $583,000 worth of the negotiable bonds taken in the Lincoln holdup. Report was that the to 1% millions of non-negotiable bonds were destroyed by the gang. This Steffens's story of how the loot was actually returned-a story scouted by some as fairy tale. Anyway, the bonds were delivered next day to Mr. Barkley in the Chicago hundreds of expense sheets, the 14-month search, Bark) nounced it cost the bank $20 get the bonds back-twice if Liukart had accepted the neapolis offer twelve months The loss in recovering was tioned against the bondholder "The blackest page in the Nebraska," Governor boomed about the return bonds. "Obtained at enormo of money and compromised county attorneys have the to arrange such deals, the should be removed. But believe they have such power However, Governor Bryan to say he would bring ouster ings against Towle. Sarcastic editorials refer Winkler as "the boy who made or commended Barkley and T condoned "the state justi fallen story is not ended Towle. "We'll get the rest of soon." Right, agree some onlooke last dramatic chapter is still What someone should be who admits the crime, denies and Lee are guilty and lishes the proof?
