Skelly v. United States

• Decision Date: 20 March 1935
• Docket Number: 1132.,No. 1131,1131
• Parties: SKELLY v. UNITED STATES. BERMAN v. SAME.
• Court: U.S. Court of Appeals — Tenth Circuit

76 F.2d 483 (1935)

SKELLY v. UNITED STATES.^*

BERMAN v. SAME.

Nos. 1131, 1132.

Circuit Court of Appeals, Tenth Circuit.

March 20, 1935.

J. B. Dudley, of Oklahoma City, Okl. (A. M. Cary, of Minneapolis, Minn., on the brief), for appellants.

Geo. E. Massey, Jr., Asst. U. S. Atty., of Oklahoma City, Okl. (Wm. C. Lewis, of Oklahoma City, Okl., on the brief), for the United States.

Before LEWIS and PHILLIPS, Circuit Judges, and KENNEDY, District Judge.

PHILLIPS, Circuit Judge.

Albert L. Bates, George R. Kelly, Kathryn Thorne Kelly, Harvey J. Bailey, Robert G. Shannon, Armon Crawford Shannon, Ora L. Shannon, Charles Wolk, Sam Kronick, Edward Berman, Peter Valder, Sam Kozberg, Clifford Skelly, and Isadore Blumenfeld were charged by indictment under the act of June 22, 1932, 47 Stat. 326 (see 12 USCA §§ 408a to 408c), with conspiracy to commit the substantive offense defined therein.¹

The indictment charged that the defendants "did knowingly, wilfully, unlawfully, and feloniously combine, confederate and agree together" continuously from July 22, 1933, to August 23, 1933, to commit an "offense against the United States * * * that is to say violate * * * the Act of Congress approved June 22, 1932, which provides a penalty for transportation in interstate commerce of any kidnapped person held for ransom or reward."

That it was a part of such conspiracy that the defendants on or about July 22, 1933, at Oklahoma City would seize, kidnap, and abduct Charles F. Urschel, would transport him in interstate commerce from Oklahoma City, Oklahoma, to the Shannon Ranch in Wise County, Texas, would hold him for a ransom of $200,000, and would demand payment thereof in used twenty-dollar Federal Reserve notes.

"That it was a further part of said conspiracy that they, the defendants aforesaid, immediately upon receipt of said ransom money would proceed to Denver, Colorado, St. Paul, Minnesota and divers other points unknown to the Grand Jurors far distant from the scene of kidnapping, place of confinement and place of ransom payment for the purpose of changing said ransom money for other moneys or securities in order to avoid detection, apprehension and arrest through the means of marked money; * * *

"* * * that at the hereinafter stated times, * * * for the purpose of carrying out and to effect the object * * * of said conspiracy, the hereinafter named defendants did, at the several times and places hereinafter mentioned in connection with their names, the several overt acts hereinafter specified * * *.

"13. That on or about August 5, 1933, at Minneapolis, Minnesota, Edward Berman, alias Barney Berman, Charles Wolk, Peter Valder, alias Hackett, alias Nelson, Sam Kozberg, Isadore Blumenfeld and Clifford Skelly and Sam Kronick did knowingly, wilfully and unlawfully possess, conceal and exchange approximately Five Thousand Five Hundred Dollars ($5,500.00) of the original ransom money paid to the said conspirators for the release of the said Chas. F. Urschel." (Italics ours.)

The Kellys were tried separately from the other defendants and convicted. The remaining defendants were tried jointly and all convicted except Wolk, Kronick, Valder, Kozberg, and Blumenfeld.

Kelly and Bates kidnapped Urschel on July 22, 1933, at Oklahoma City, transported him to the Shannon ranch in Wise County, Texas, and there held him for ransom from July 23 to July 31, 1933. On the latter date they transported Urschel from the Shannon ranch to a point near Norman, Oklahoma, where they released him.

Kelly and Bates demanded payment of a ransom of $200,000 in used twenty-dollar Federal Reserve notes. The ransom was paid to Kelly in the form demanded at Kansas City, Missouri, on July 30, 1933.

The following telegram, the original of which was in the handwriting of Bates, was sent from Minneapolis on August 8, 1933:

"Western Union Telegram August 8, 1933, 1:39 P. M "R. G. Shannon "c/o Sales Manager, Cadillac Factory Sales Branch "Cleveland, Ohio.

"Deal has fell through. Jack and Tom have left. Communicate with me at Box 631.

"George "Geo. H. Miller, Sheridan Hotel, Minneapolis."

The Kellys were at the Cadillac Motor Car Company at Cleveland, Ohio, on June 2 and 3, 1933, and purchased a 16-cylinder Cadillac. They returned August 8, 1933, and paid the Motor Company $1310, the balance due on such automobile, and arranged to purchase a second automobile.

In dealing with the Motor Company they went under the name of R. G. and Ora L. Shannon. The above quoted telegram was delivered to them on August 8 by the Motor Company. After having arranged for the purchase of a second car, they informed the Motor Company on August 9, 1933, that they had to return to Paradise, Texas, on account of the illness of Mrs. Kelly's mother, and had decided not to purchase the second car.

Coulter, a special agent, learned on August 5, 1933, that certain of the ransom bills had been received by the Hennepin State Bank of Minneapolis. He traced them back to Berman and Skelly. Berman, Skelly, and Blumenfeld were in the illicit liquor business. Berman told Coulter that a man came to their office in the West Hotel on August 3, 1933, introduced himself as Collins and said he was from the south and wanted to buy some liquor; that he did not know the man so he turned him over to Blumenfeld; that Blumenfeld talked to the man and then informed him, "this man knows some people down South. I can say he is all right." That they then made a deal for 125 cases at $5,500. That the man counted out $5,000 in $20 bills and the balance in $100 and $10 bills. That about an hour and a half later the man returned in a Chevrolet truck and took the liquor; that they did not know who the man was and had not seen him since; that they gave Max Bender of St. Paul $1440; that Skelly used some of the money to repair his house; that he let his son-in-law have $1100, and they used $1000 to purchase a cashier's check, payable to S. H. Peters, from the Hennepin State Bank; that he and Skelly went to the bank with Sam Frederick, and that Frederick purchased the draft; that Chas. Wolk sent Frederick to the bank with them.

Skelly made a like statement to Coulter as to the disposition of the money. Skelly also stated that he went with Frederick to the bank.

On August 5, 1933, Berman requested Wolk by telephone to go to the bank and purchase a cashier's check. Berman and Skelly then went to Wolk's place of business. Wolk instructed Frederick to go to the bank with Berman and Skelly, who were sitting in a car outside the warehouse of the Wolk Transfer Company. Frederick was a truck driver for that company. Frederick accompanied the two men to the Hennepin State Bank in Minneapolis. When they got to the bank the man who was driving said, "Go and get a check for $1800 under the name of S. H. Peters." Skelly afterwards admitted to Frederick that he was the driver. The man in the rear seat gave Frederick two bundles of bills and a 25-cent piece. Frederick went to Mr. Hagan's cage in the bank and said, "Mr. Hagan, please give me a cashier's check." Frederick obtained the check and went out onto the sidewalk, but did not see Berman and Skelly. He stood there a moment and then heard the sound of an automobile horn, turned around, and saw Skelly and Berman in the car. He handed Berman the check through the car window, and Skelly and Berman drove away.

Hagan had received a notice concerning $20 notes of the Tenth Federal Reserve District. He observed a large number of such notes among the currency with which Frederick had purchased the cashier's check, and notified an officer of the bank, who called in Coulter. The latter came and took the numbers of the notes. Fifty of them were ransom notes.

Previously to August 5, Valder had cashed a check on a Fargo, North Dakota, firm for $1,000 at the First National Bank & Trust Company of Minneapolis. It was returned on account of insufficient funds.

The First National Bank notified Valder to take up the check, and on August 5, 1933, he presented the cashier's check made to Peters to take up the $1,000 check, and received $800 in currency. Valder was in the liquor business.

Coulter arrested Frederick and Wolk on August 6, and Valder on August 7. Statements respecting such arrests first appeared in the newspapers on August 8.

After getting a statement from Wolk, Coulter started to look for Berman on August 8. He went to Berman's office in the West Hotel, but no one was there. He kept searching for Berman but failed to locate him. On August 13 Berman came to Coulter's office. On August 25 Coulter interrogated Berman and Skelly. Coulter asked Berman why he ran away when Valder was arrested. Berman replied, "I was afraid they were going to take me back down south without a chance to confer with my lawyer." Coulter said, "How do you know you would be taken down there?" Berman answered, "I heard it; you know how news travels." Berman admitted that he, Skelly, Banks, Blumenfeld, and Cary their lawyer, were at Medicine Lake Cottage on August 8. Berman, Skelly, and Blumenfeld all said they were there because they wanted to confer with their attorney. Skelly said he was scared, and Blumenfeld said he knew he would be picked up if he remained in Minneapolis.

Twenty-five of the ransom notes were deposited in the St. Anthony Falls office of the First National Bank & Trust Company of Minneapolis on Saturday, August 5, 1933, by Kronick. Kronick was in the barber supply business, and stated to Coulter he got the money in the regular course of business during the week it was deposited. Sam Kozberg, a cousin of Kronick's, let the latter have $500 in $20 bills on August 5, 1933. Kozberg obtained them from Berman on that date. Kozberg testified Kronick was indebted to his (Kozberg's) company, the LaSalle Products Company, in excess of $500; that Berman owed Kozberg and Kozberg went to Berman and secured the $500 and gave it to Kronick, who in turn gave Kozberg a check for $500...