It’s not entirely surprising that immediately upon ABC’s

crash in late August, Linden packed up his family and

headed for New York. It has been surmised that he did so seeking new investors to

somehow try rescue ABC. It seems possible that he left for New York because he had an

existing corporate entity there which remained under his control. And to the degree that

he was trying to rescue ABC, it would have been far easier to do through All-BC rather

than trying gain control over ABC from its receiver if he successfully found new capital.

While Linden returned to Seattle in November, 1929 to consult with creditors and

colleagues, he otherwise remained in New York where he made various attempts at

business. Both he and Elizabeth had been stripped of virtually all of their possessions.

Because it had been pledged against the losses which Puget Sound Savings and Loan

suffered from her husband’s activities, her fairly considerable personal fortune was gone.

The couple (and their young son) were seemingly helped with contributions from some

old Seattle friends while they tried to craft a new life in New York. While it is not clear

what was used to do so, they launched a tea room/restaurant (also reported as a night

club) which ultimately failed. He also set up a company designed to operate a chain of

restaurants which never materialized. New Yorkers may not have been taking tea out

very much during the Depression. Elizabeth wound up working as a clerk for Macy’s.

In 1931, Linden was arrested and extradited back to Seattle

to stand trial for embezzlement (although the Grand Jury

indictment used the term “abstraction of funds” instead of

embezzlement). Various accounts suggest that the criminal

charge was somewhat inflated given the reality of what he

had done and the restitution efforts he had already made.

He and Elizabeth had turned over all their assets to Puget

Sound Savings and Loan to satisfy the deficiencies he had

created. The bank, however, failed to promptly liquidate

those assets and the October Stock Market crash so

significantly devalued them that their sale would have been

substantially inadequate in discharging the debt he had

created.

At the time of his arrest Linden was living in the Hotel

Wellington, a residential hotel near Carnegie Hall. The

family apparently had been given some financial assistance

by Seattle friends. What is indisputable is that, after

arriving in New York, he continued to pursue attempts to

secure new capital to either rescue or recreate his vision

which ABC represented. At the time of his arrest, he was

trying to interest former film studio owner William Fox in

investing in a national radio network.