These three sat behind the closed and locked door of Captain Nash’s

quarters and pried the jewels from their settings. They decided it

would be much easier to smuggle the loose jewels into the United States

rather than leave them in their settings.

Why they thought they could escape undetected with one of the great

treasures of Europe remains a mystery. It was a monstrous game of

“losers weepers, finders keepers.” In their greed they began to look

upon the Hesse jewels as legitimate loot. Because they were on the

winning team in the war, they reasoned they were entitled to share in

the spoils. If their share happened to be a fortune in gems, then that

was merely their good luck.

Colonel Durant casually made inquiries among his fellow officers about

the customs procedures in the United States and whether or not the

inspectors of military personnel were very thorough in going through

luggage.

One officer who had returned from a recent trip home said, “There’s no

sweat. The inspectors clear you as fast as they can. They didn’t even

look into my baggage. I guess they figure a guy who has been fighting a

war should not be delayed in getting home.”

Durant persuaded a former secretary to carry home for him several

pieces of the jewelry. She innocently believed they were nothing more

valuable than costume jewelry which he had picked up in Europe.

Captain Nash turned over her share of the loot to Major Watson, who

packed it in an ordinary wooden box and then mailed it to her in care

of her sister, Mrs. Eileen Lonergan, in Hudson, Wisconsin. The box

arrived in New York along with several thousands of other shipments

from Europe. A Customs examiner accepted the statement on the box that

it contained only personal belongings and nothing of dutiable value.

And so the box went on its way to the house in Wisconsin.

Colonel Durant arrived at Westover Field by plane on March 12, 1946,

aboard ATC Flight 9076, which had originated in Paris. He wrote on his

customs declaration that he carried one watch worth $60, perfume worth

$83, a $2.50 purse, and two cigarette lighters worth $17. He stated he

had no other articles on which he should pay duty.

No one questioned the colonel’s declaration and within a short time he

was on his way to Washington, D. C., to visit his brother, James E.

Durant, who lived in Falls Church, Virginia.

Colonel Durant showed his brother a good many of the unset stones and

articles which he had brought back from overseas, and his brother

helped him remove several diamonds from two tubes of shaving cream.

Durant explained that while travelling to Italy a German had sold him

more than one hundred diamonds for 3,000 German marks.

Durant gave one of the diamonds to a Washington, D. C., automobile

dealer--a diamond appraised at $500--as part payment for a Hudson

automobile. Another automobile dealer in Falls Church, Virginia,

purchased two of the diamonds for $400, and Durant--using the assumed

name of J. W. Gable--disposed of three of the diamonds to a jewelry

firm in Washington for $357. Then he drove to Chicago to meet Kathleen

Nash.

A few days after arriving in Chicago, Colonel Durant put in a call

for his friend, Dr. Reuben Mark, at the Embassy Hotel. Dr. Mark was a

dentist who had struck up a friendship with Durant a few years earlier

in Washington, D. C. As Dr. Mark related the story of their meeting

later:

“It was around April of this year. One evening he called and he said,

‘Ruby, this is Jack.’ I said, ‘When did you get in?’ He said, ‘Just

today.’ I asked him how long he was going to be in town and he said he

did not know. He was on thirty days leave and he had already spent a

few days.

“Then he asked when we would get together. That was on Saturday night.

He said something about a girl friend of his coming in from the coast.

He said it was a girl that had been overseas with him and she was a

divorcee. He said she was pretty and had been married to a wealthy man

in Arizona and had just joined the WACs to get away.

“We arranged to meet in a day or so. A couple of days later we met

after office hours at Isbell’s restaurant on Diversey. That was the

night I first met his girl. Katy, as I began to call her, was a nice

girl. Nothing unusual.

“It was there that Jack asked me, ‘Ruby, do you know any jewelers?’ I

said, ‘Sure, I know some jewelers.’ Just about that time he pulled out

a tissue paper. He opened it up and I saw three stones. I asked, ‘Where

did you get them?’ He said he picked them up overseas in Frankfurt.

“At that time nothing occurred to me about anything being wrong. I

know lots of boys who brought things from overseas and I felt, well, so

what, he was overseas. I said, ‘Yes, I know some jewelers.’ And he said

he would like to call them. I told him I would call the following day.

“I called a Mr. Horwitz, whom I had known for some time, and I asked if

he was interested in buying some diamonds. He said yes....”

Dr. Mark accompanied Durant to the jeweler’s place of business and

introduced him. Durant took a small cloth sack from his pocket and when

he upended it, a shower of diamonds cascaded onto the desk. There were

102 stones in the lot.

Horwitz looked at the stones under a magnifying glass, examining each

of them carefully. Finally he said, “These are fine stones, Colonel. We

don’t see diamonds like these very often. They’re beautifully cut.”

Durant explained he had been able to get them at a bargain price from a

German badly in need of cash. “How much do you figure they are worth?”

he asked.

“I’ll pay you $125 a carat,” Horwitz said. “It’s a fair price.”

“That’s okay,” Durant said. “But there’s just one thing. The deal can’t

be made in my name. I’m in the Army and I’m not supposed to transact

any outside business. It will have to be a cash transaction.”

Horwitz shook his head. “I’m sorry,” he said. “We only make purchases

by check. In buying outside the regular channels I would have to call

the police to make certain there is no violation of regulations.”

“That’s all right,” Durant said quickly. “Go ahead and call.”

Horwitz made a telephone call and then said, “The police say there’s

nothing wrong with making a purchase from an Army man who has returned

from overseas--provided the customs duty has been paid. Has the duty

been paid on these stones?”

“I mailed them into the country,” Durant said. “All the boys were

mailing stuff back and I did too.” Then Durant added, “But, look, I’m

not here for business particularly. I’m going to take a trip to Mexico.

If it’s only a question of duty, I’ll stop off someplace and take care

of the duty part of it and I’ll see you when I get back.”

Horwitz then said to Mark, “Why don’t we make out the check in your

name, Doctor? You can cash it and give the money to the colonel.”

Mark hesitated. “I suppose the check could be made out to me on a

tentative basis,” he said. “But I’ll have to call my auditors and see

that I don’t get fouled up with them.”

Horwitz had his secretary draw a check for the purchase of the

diamonds. When Durant and the doctor had left his office, he called his

lawyer. He explained the situation and asked his advice.

“There’s nothing wrong about buying diamonds from a member of the armed

forces,” the lawyer said, “but you’d better be certain the diamonds

were declared and duty paid on them when they were brought into the

country. If they were not declared, it is not a proper transaction and

I’d advise you to stop payment on the check.”

Horwitz immediately called his bank and stopped payment on the check.

The following morning he called Dr. Mark and advised him of what he

had done on the advice of his attorney. “I can’t go through with the

transaction,” he said, “unless the colonel will produce a customs

receipt showing the diamonds were declared and the duty was satisfied.”

Mark and Durant returned to Horwitz’s place of business to retrieve the

diamonds and to hand back the check.

Horwitz suggested, “Why don’t you go to see Mr. Meiners at the customs

house? He’s assistant collector of customs and he could clear this

thing up for you. I’d even be willing to pay half of the duty.”

Durant mumbled something about having to hurry to the airport to make

a flight. He said he would be back in Chicago in about ten days and he

certainly would go and see Mr. Meiners at the first opportunity.

After the collapse of this deal, Durant and Captain Nash left Chicago

by automobile for a vacation in the Southwest and Mexico. But even as

they were leaving Chicago, Federal agents were on their trail.

The theft of the gems had been discovered by the Countess Margarethe

in Germany. She had gone to the basement to check on the safety of the

jewels. She had found the hole in the basement floor. The conspirators

had not even refilled the hole or re-covered it with concrete. The

theft was reported to Army authorities and the matter was turned over

to the Army’s criminal investigation division.

The Army’s agents began questioning everyone who had been employed in

any capacity at Kronberg Castle. Finally they came to the old janitor

who told them of digging up the boxes in the basement coal room. He

didn’t know what was in the boxes. He only knew they had been taken to

Captain Nash’s quarters. He had never heard any mention of them again.

Customs agents were called in to help with the case. They traced

Captain Nash’s movements from the time of her arrival in New York

until she left Chicago accompanied by Colonel Durant. They learned of

Durant’s visit with Dr. Mark to the jeweler, Horwitz, and the collapse

of the diamond deal--because the customs duties had not been paid on

the gems. But no one knew the destination of the couple when they left

Chicago.

Through calls to friends and relatives, Dr. Mark located Durant

in Texas--and advised him he was wanted by the Customs people for

questioning. On April 19, 1946, Durant appeared at the office of the

Supervising Customs Agent in Chicago with the air of an innocent man

who was shocked that anyone should question his integrity.

“You did bring diamonds into the country without declaring them and

without paying duty on them, didn’t you, Colonel?” an agent asked.

“Yes,” Durant said, “but I was doing only what everybody else in the

armed services was doing. I didn’t know a declaration was required.”

“Where did you get the diamonds?”

“I bought them from a German civilian. I gave him my Elgin wrist watch

and 3,000 German marks.”

The agent said, “How did you get them into the country?”

“I put them in a cigar box and mailed the box to myself in care of my

brother in Falls Church,” Durant replied.

“Where are the diamonds now?”

Durant reached into his pocket and pulled out the sack of diamonds.

“There they are,” he said, tossing the sack onto the desk. “That’s all

of them.”

“We’re going to have to hold these diamonds until our investigation is

completed, Colonel,” an agent said. “But of course you have the right

under law to petition for a return of the diamonds and for remission or

mitigation of any penalties.”

“I certainly do want to petition for their return,” Durant said angrily.

He was handed a blank petition. And he wrote: “I am the sole owner of

said diamonds.... At the time I mailed these diamonds into the United

States I assumed that it was not necessary for me to declare them to

any governmental agency.... At no time did I intend to import into the

United States and thereafter make any disposition of said diamonds in

violation of any statute of the United States.... Therefore, I petition

for (their return)....”

Immediately after this meeting with Customs agents, Durant and Captain

Nash drove from Chicago to Washington, D. C. Durant hurried to the home

of his brother in Falls Church. After nightfall, the brothers drove to

a spot on a country road halfway between Lee Highway and Route 50.

They parked the car and walked into a woods to a large oak tree. At the

base of the tree, Durant buried an ink bottle which contained fifty

small diamonds and two large emerald-cut diamonds--together with a roll

of gold wire which weighed 8 ounces.

“For God’s sake, don’t forget where we buried this stuff,” Durant said

to his brother. And then the two returned to the car and headed back to

Falls Church. A few days later, Colonel Durant began his terminal leave

prior to being mustered out of the armed services.

Less than a month later, on May 18, Colonel Durant drove into

Washington accompanied by Kathleen Nash. They went to a hotel and that

night Durant again visited his brother James in Falls Church. Again the

brothers drove to the woods on Lee Highway, where they walked to the

big oak tree. Durant took a large jar from a leather handbag and buried

it at the base of the tree. The jar contained loose amethysts and white

envelopes which Durant told his brother contained loose diamonds.

As they drove from the woods, Durant said, “Don’t forget where we

buried the jars. There’s enough in them to set us up for life. If

anything happens, I want you to have what’s there.” The next day,

Durant and Captain Nash left Washington and headed for Chicago.

Now the net was tightening and Durant sensed it. He had heard the

disturbing news in Washington that his terminal leave might be

cancelled--and this could mean only one thing: the Army didn’t want to

lose its hold on him. Then he and Kathleen learned that she, too, might

have difficulty in getting out of the Army.

Two weeks after burying the large jar in the woods, Durant telephoned

his brother from Chicago.

“Listen, Jim,” he said. “Go to the big tree and get the large glass

jar. Bring it to me in Chicago. It’s urgent.”

James Durant went to the woods and searched for the tree. But this

night they all looked alike. He called his brother. “I can’t find it,”

he said. “I can’t even find the tree.”

Jack Durant cursed softly. “I’ve got to have that jar,” he said. “I’ll

have to get it myself.”

Durant caught a late plane from Chicago, arriving at the Washington

International Airport at 4 A.M. He took a taxi to his brother’s home,

awakened him, and they drove to the woods, where the colonel walked

unerringly to the tree and unearthed the jar. Then he returned to the

airport and bought a ticket for the 8 A.M. flight to Chicago. But

before he left, he gave his brother two small packages containing

$28,000 in cash--with instructions to place the money in a sealed jar

and bury it at a place he wouldn’t forget. The brother buried the money

that same afternoon.

During this frantic activity, the War Department cancelled the

unexpired part of the colonel’s terminal leave and ordered him back on

active duty. Similar orders went forth for Kathleen Nash.

It was after they received these orders that Colonel Durant and Captain

Nash were married. Some cynics suggested later that the colonel married

her because once the marriage vows were said, she could not be made to

testify against him. But there was nothing in the record to indicate

that the two were not in love and had not planned marriage all along.

Early in June, Army and Customs agents began questioning the couple in

Chicago. For several days Durant maintained a stubborn silence, but

finally he broke. He told of the gems and the money hidden near Falls

Church--and he took full responsibility, clearing his brother of any

complicity.

Agents found the hiding place in the woods. They dug up the money

and the gems--but these were only a part of the treasure taken from

Kronberg Castle. Durant was pressed to tell what had happened to the

other gems.

“The situation is complicated,” he parried. “I might be able to get the

stuff back if you will let me make some telephone calls--in private.”

Durant was permitted to make the calls. After each call he made excuses

and talked vaguely of “complications.” He refused to disclose with whom

he had talked.

On Friday, June 7, the agents permitted Durant to see his bride alone.

What they discussed no one except themselves ever knew. When Durant

came from this meeting he told the agents, “I’m sorry. I haven’t been

trying to get the jewels. I’ve been stalling for time. But now I’ll try

to get them for you.”

“Where are the jewels,” he was asked.

“They are in the hands of a fence. I think I can get them--but it will

take some more telephoning. This time I’m not fooling.” He continued to

insist that the calls had to be unmonitored.

Durant was permitted to make telephone calls from a public pay

station--and to wait for a return call. The return call came within

a few minutes, and when he had hung up the receiver, Durant said,

“Everything looks all right. I think we can get the stuff this evening.”

That evening the colonel’s mysterious contact called for him at the

pay station. This time Durant said, “We can get the jewels any time we

wish. They’re at the Illinois Railroad Station.”

Two agents accompanied Durant to the station. He walked to an electric

wall fixture near the luggage lockers, reached up, and removed a key

from the fixture. He opened a nearby locker and removed a package which

he handed over to the agents. The package contained a large number of

emeralds, sapphires, pearls, rubies and other stones.

Durant counted the gems carefully and then exclaimed, “Some of the

stuff is missing. Let me make another telephone call.” Again he called

his contact and this time he reported, “We can’t get the stuff until

Monday.”

On the following Monday, June 10, Durant again called his unknown

contact. This time he told agents the remainder of the jewels were

checked at the North Western Railroad and the claim check was hidden

in a telephone booth across from the parcel room.

When Durant and the agents reached the station, Durant searched the

telephone booths without finding a claim check. “It doesn’t matter,”

Durant said. “I got the number of the check in case anything should go

wrong. It’s number 110.”

But there was no parcel numbered 110 at the North Western Station.

Durant hurried to a phone booth and placed another call to his contact

man. When he completed the call, he said, “I misunderstood the

instructions. We should have gone to the LaSalle Street Station.”

At the LaSalle Street Station, Durant went to the sixth telephone booth

and took from behind the instrument panel a slip of paper. He read it

and handed it over to the agents. On the paper was a handwritten note

which said: “Too bad. My hat knocked your ticket off. Guess I have a

right to keep the baggage.”

An inquiry at the check room disclosed that a parcel had been left

there the day before under the number 110--but it had been removed that

morning by a man who had presented the proper claim check.

“I don’t remember what the guy looked like,” the attendant said. “I

didn’t pay any attention. All I know is the guy had the right check and

I gave him the package.”

At this point, Durant refused any further cooperation. He insisted that

his mysterious contact had nothing to do with the missing jewels--and

he refused to disclose the name of the contact or to make any further

effort to locate the jewels.

The investigators had better luck with Kathleen Nash Durant. She

admitted to officers the agreement in Germany between herself, Colonel

Durant and Major Watson. She told of removing the numerous stones from

their settings and sending a large number of them to her sister’s

home in Wisconsin, concealed in boxes. Her sister was instructed not

to release the boxes to anyone unless she heard or read the code word

“Cemetery.” She turned over to Army officers the following note:

June 3, 1946

To Eileen, Jack, or David,

I have confessed to having the box of jewels, Bibles and fan that I

hid in the attic. Will you please give same to officer presenting

you this note, Major John D. Salb, our code “cemetery”--goes--sorry

to cause you so much grief and I don’t deserve you to worry over

me anymore.

Love,

_Vonie_ (_Kathleen B. Durant_)

When agents flew to Hudson, Wisconsin, and presented the note to Mrs.

Lonergan, she readily turned over the boxes hidden in the attic.

Kathleen Nash Durant and her husband were sentenced by a military court

martial to fifteen years in prison. Major Watson was sentenced to three

years for his smaller role in the conspiracy.

Most all the jewels of the Hesse treasury found in old Kronberg Castle

were returned to their rightful owners. But some of the priceless

pieces still are missing. The settings--many of them fashioned by

Europe’s greatest artisans--were lost forever. They had been cut to

pieces and melted into gold wire.

16

THE CHISELERS

Chiselers are constantly seeking ways to avoid paying customs duties.

And the female of the species is just as clever and persistent as

the male--or, as is more often the case, just as dumb. In the early

1930s, the chiselers found it extremely profitable to smuggle watch

movements into the United States from Switzerland. Smuggling reached

such proportions that it helped to virtually destroy the American watch

industry. The situation became so grave that the Federal government

appealed to the Swiss government to cooperate in a program to control

the illegal traffic in watch parts. An agreement finally was reached

on a treaty whereby the Swiss devised a system of numbering the

watch parts and assigning code numbers to importers as a means of

discouraging illegal imports.

The treaty helped to wipe out much of the commercial smuggling of watch

parts. Despite these efforts the traffic continued through the years

to be a profitable venture for smuggling gangs who often persuaded

housewives, businessmen, and tourists to act as carriers.

Mrs. Elizabeth Schmidbauer, the plump, middle-aged wife of a restaurant

owner in Munich, Germany, was one of those who became a dupe for a

watch smuggling gang in 1954. And her trip to the United States to

visit a relative--a trip for which she had planned so eagerly and for

so long--became a nightmare for her and her family.

The nightmare began in Munich when Mrs. Schmidbauer told friends at her

husband’s restaurant that she was going to America with an aunt, Mrs.

Anna Obermaier, who was then visiting in Germany. She talked of the

clothes she would need and her intention of buying two new suitcases

for the trip. Among those in the restaurant who listened with interest

to Mrs. Schmidbauer’s excited chatter was a regular customer named

Moritz, with whom the Schmidbauers had been on friendly terms for many

years.

Two days before her departure from Munich, Mrs. Schmidbauer answered

a knock at her door and found that the caller was Moritz, who was

carrying two new suitcases. “I heard you say you needed luggage for

your trip,” he said, “and here it is.”

Mrs. Schmidbauer invited Moritz into the living room. Over coffee and

cakes he told her that he was willing to pay her fare to the United

States if she would do him a favor: deliver the suitcases to a friend

in New York along with a small parcel.

“What is in the parcel?” Mrs. Schmidbauer asked.

“Watch movements,” Mortiz said. “If you will take them through customs

it will save quite a bit of money. I am ready to pay your fare to the

United States if you will do this favor for me.”

“But what about the police and the American Customs?” Mrs. Schmidbauer

exclaimed. “I may get into trouble if I do this thing.”

“Nonsense,” Mortiz said. “Nothing can happen to you. All you have to do

is sew the watch parts into your corset and no one will be the wiser.”

The lure of free passage to the United States was too great a

temptation. Mrs. Schmidbauer agreed to the scheme. That night she

obtained strips of cloth and sewed most of the watch movements into her

corset. The others she placed in her large handbag.

Mrs. Schmidbauer felt that Moritz was telling the truth when he said

that she would have no difficulty. If he thought there would be any

trouble, then he would not take such a risk himself.

The plan was very simple. When she arrived in New York and was safely

through customs, she was to send a cable to her husband saying, “Gut

angekommen,” indicating that all was well. Mortiz would keep in touch

with her husband. After the receipt of the message, he would cable his

friend in New York and instruct him to pick up the suitcases and the

watch movements. Once the delivery was made, then she would receive

payment for her fare to New York.

Mrs. Schmidbauer left Munich with her aunt, Mrs. Obermaier, and

travelled to Southhampton, England, where she boarded the SS _Queen

Elizabeth_ for the Atlantic crossing. The big liner reached New York

harbor on December 14, 1954, and docked at Pier 90 on the North River

at 8:15 A.M.

Border guard · 第 17 / 24 段