Other developments included:
--Announcement by Warden P. E. Thomas of Ohio State Penitentiary that a letter, signed Bruno Hauptmann, was written to George Paulis, a prisoner, prior to the kidnaping. It was a code letter, which conveyed this message: "Intend kidnap Lindbergh baby. Hope for me."
--Revelation that Paulis was taken to New Jersey after the kidnaping to aid in the investigation and that a man and woman tried to approach him on a station platform. Later Paulis said that the couple was "responsible" for the abduction and that the woman was the "brains" of the plot.
--Search for a woman in the case was spurred by New York police declaration that a strong theory had been built up that a woman aided Hauptmann. However, they did not have any specific woman under suspicion.
--The kidnaper's ladder was traced to a lumber yard where Hauptmann worked before the kidnaping. Two pair of field glasses, one of which was extremely powerful, were found in his home. He might have used them to study movements at the Lindbergh house, police said.
--Positive identification of the Hauptmann handwriting as that on all ransom notes, some of them known to have been written by the actual kidnaper, announced by the New Jersey police on basis of expert study.
--Contradictions in Hauptmann's story, including the fact that his dead partner in the fur business had borrowed money from him instead of leaving money in the hands of Hauptmann, as claimed.
Warden Thomas revealed the strange story at a press conference that was interrupted by the attempted break of the two Dillinger gangsters.
He revealed that Paulis, the prisoner, had been taken to the Lindbergh estate and had been questioned about his story by Col. Lindbergh and by Col. H. Norman Schwarzkopf, then in charge of the kidnaping investigation. This was about 20 days after the child had been stolen.
The tip came in a coded letter that Warden Thomas said he and his daughter, Miss Amanda Thomas, remember because she pointed it out as a "crazy letter." Miss Thomas is the penitentiary's official mail censor. She and the warden applied the ordinary code break-down on the letter but it still made no sense.
This was the middle of January in 1932, about seven weeks before the Lindbergh kidnaping, the warden said.
About March 20, Paulis came to the warden with the letter and deciphered it from him. The message, "Will kidnap Lindy baby. Hope for me," was made up by combining the second word in each sentence of the letter's body, the warden said today.
Warden Thomas said he had remembered the name "Bruno Hauptmann" as the signature on the letter. He said he believed Paulis' story and arranged with Gov. George White to take the prisoner to New Jersey.
"Paulis said he had met this Hauptmann in New Jersey after he (Paulis) had escaped as a military prisoner from Mitchel Field," the warden said. "Paulis told me that this Hauptmann was a 'hot head' and that he (Paulis) feared that harm would come to the Lindbergh baby if it were not recovered soon."
Paulis is serving 10 to 25 years in the Ohio Penitentiary for a robbery.
"I still believe the story," Warden Thomas said. "I'm not ordinarily credulous about things like this, but Paulis convinced me when he first showed me the letter. I feel certain that this will prove a good lead in the effort to pin the kidnaping on Hauptmann."
Warden Thomas said Paulis was held over night at the Newark (N. J.) Police Station during the trip to Jersey. At a railroad station next day, the warden related, officials noticed a man and woman were watching Paulis and appeared as if they wanted to talk with him.
The warden related that Paulis remarked, "There are the kidnapers. The woman is the brains of the gang."
Paulis, the warden said, has identified pictures of Hauptmann as the man he knew in New Jersey, and said that Hauptmann is the man who sent him the coded message. Paulis told the warden that he had received several letters from Hauptmann previous to the coded one. That was the last letter Paulis received, the warden said.
Warden Thomas said he would take Paulis to New York to tell his story if requested.
Questioning of Hauptmann continued today after he had been allowed to sleep a few hours. Authorities were finishing up an air-tight circumstantial case with more than 50 hours of constant hammering failing to break the former German army machine gunner.
But his alibis were not as strong as the prisoner. The investigators reported today that they had refuted Hauptmann's story of how he got $13,750 of the $50,000 which Col. Charles A. Lindbergh paid out for the safe return of a baby that was already dead.
New York detectives, who had been working on Hauptmann's story that he got the money from a man named Isadore Fische, who later died in Germany, said today that the story had been amply disproved as far as police purposes were concerned and all but adequately refuted for the courtroom.
They had ascertained that Hauptmann's stock market speculations had not made money for him, as he had originally stated in explaining his possession of so large a sum, but had resulted in considerable losses.
The stock market alibi boomeranged, for the investigators, checking it out, learned that Hauptmann began his speculations as soon as the ransom was paid and began them on a scale impossible to the impoverished, unemployed carpenter that Hauptmann was pretending to be.
Earlier developments included:
A theory advanced by Assistant Chief Inspector John J. Sulllivan that a woman aided Hauptmann because "no man would risk moving a baby through that countryside without a woman to aid him."
A deposit slip filled out when $2,970 of the ransom gold backs were turned in for silver certificates was checked to determine whether Hauptmann or a confederate turned in the money. A mysterious suicide-apparently not connected with the Lindbergh case-was on the record in connection with investigation of the deposit slip.
Fische at one time borrowed $4,000 from an unidentified woman. Fische also had borrowed $7,500 from Hauptmann in 1932, records showed.
Whether the woman from whom Fische borrowed the $4,000 had any connection with the Lindbergh ransom money was not disclosed by police.
With the prisoner's accounts of how he got the money beaten down, authorities turned to the evolution of a positive circumstantial case against him.
Three things stood out in this side of the investigation:
The investigating authorities have not revealed all the evidence which they have against Hauptmann.
Federal authorities in Washington are working on the theory that Hauptmann had accomplices in the Lindbergh household.
Leaders in the inquiry say, "Men have been hanged on less evidence than we have against Hauptmann now."
At the office of Samuel J. Foley, U. S. attorney for Bronx county, it was said that several women were questioned yesterday in the Hauptmann investigation.
It was emphasized, however, that these women were merely witnesses, that none of them were suspected of being connected with the Lindbergh case in any way and that Mr. Foley's office does not expect to connect any woman with the case. None is under arrest or detained at present, officials said.
"There is a great deal of information from various sources," Mr. Foley said. "Some of the statements I don't know how to characterize."
Joseph Perone, a taxicab driver, who took the ransom recipient to the place where the money was paid was questioned again today at the district attorney's office.
Mr. Foley said he was now ready to go before the Grand Jury.
Police recalled, in connection with the belief that a woman aided Hauptmann, that a woman was reported to have given Dr. J. F. (Jafsie) Condon instructions to "keep walking ahead" when he neared the spot where he met a man (supposedly Hauptmann) to deliver the ransom money. She was accompanied by a man.
Meanwhile, the inquiry indicated that Hauptmann had taken advantage of President Roosevelt's order calling in all gold and gold certificates to dispose of the two largest portions of the ransom money that appeared during the months they traced every bill, knowing that eventually one would lead to the man they wanted.
Soon after gold was ordered returned to banks, $500 in gold certificates, Lindbergh money, appeared in a Manhattan bank. Detectives, alarmed that it had been turned in by an individual who escaped all notice, frantically circulated bank tellers, but two weeks later $2,970 in Lindbergh certificates was turned in at the Federal Reserve branch.
The unsuspecting teller asked the passer to make out a deposit slip-a routine procedure. He gave the name J. J. Faulkner, 553 W. 149th street.
An investigation of all Faulkners in the city directory resulted in finding a woman named Faulkner, who was married. Her husband was asked to recall if any relatives could possibly have deposited the goldbacks, which were ransom money. He never reported back to the detectives but three months later he killed himself, although believed not in any way implicated.
Continuing their search for more of the ransom, detectives discovered that Hauptmann had given his landlady, Mrs. Pauline Rauch, two $10 bills in Lindbergh money in paying his August and January rent. As Mrs. Rauch hides her rent money around the house, she was able to turn the bills over to authorities.
Dozens of Department of Justice agents and New York City detectives were assigned to uncover every detail of Hauptmann's life immediately preceding March 1, 1932, when the baby was stolen from the Lindbergh home in Hopewell, N. J., and of the two and one-half years following. No law enforcement authority involved had the least doubt but that Hauptmann was the man sought for the most revolting crime of the century.
New Jersey withheld its formal request for extradition pending completion of an airtight case which authorities thought would be ready by Monday or Tuesday. John Doe indictments charging murder and kidnaping pend in Hunterdon and Mercer counties, New Jersey. The procedure will be to substitute Hauptmann's name for John Doe.
Authorities confidentially believed Hauptmann would be turned over to New Jersey authorities by New York police by the middle of next week.
So weary he could hardly stay on his feet, Hauptmann was lodged in the Bronx County Jail for his first extended sleep since he was arrested Wednesday. Following a usual but little publicized police method, he had been questioned almost continuously and without sleep for over 50 hours. The ordinary criminal would have broken under the strain.
Former German army machine gunner, ex-German convict, Hauptmann demonstrated time and time again that he was far above the ordinary in both stamina and intelligence.
The chance that he may have cached a part of the ransom money in Germany today had led to sending a detective across the water to search for it.
The $13,750 found in Hauptmann's garage plus about $5,000 he is known to have spent, leaves about $31,000 still unaccounted for. Detectives believed that some of this had been spent without trace, but were convinced that somewhere, some place, a good portion of it was hidden.
Hauptmann's wife, who visited Germany soon after the kidnaping, was questioned as to the packages she carried there from New York. Police did not say what information, if any, she had given.
The more detectives looked into the past of the sly, sullen Teuton, the more they were amazed by the cunning mind behind an apparently stupid exterior. They discovered he had arranged settlement of criminal charges that had been pending against him in Germany since 1932, and was prepared to return to his native country in a few weeks. Had he left, the Lindbergh ransom money would have gone with him, ending at least temporarily and perhaps forever any possibility of a solution to the kidnapping and murder.
Detectives located the brokerage account through which Hauptmann began his market manipulations in April, 1932. To explain why he stopped working at the time the ransom was paid and has not worked since, and also his sudden transformation from an unemployed artisan who found livelihood very difficult into a prosperous burgher who could afford a European trip for his wife, Hauptmann said he had won steadily in Wall Street.
The brokerage account and several of his bank accounts were being audited. Detectives were non-communicative, but it was understood that instead of winning in Wall Street, Hauptmann had lost steadily. These losses may explain what happened to a portion of the ransom money still missing, authorities said.
A law enforcement official, prominent in the investigation, said: "We have not disclosed all the circumstantial evidence we have. I might add that men have been hanged on less circumstantial evidence than we have against Hauptmann."
A new link in the chain of circumstantial evidence authorities disclosed, was the tracing of Hauptmann's past to the lumber yard of the National Millwork & Lumber Corporation in the Bronx. The lumber used in the kidnapper's ladder came from this yard. Hauptmann worked in the yard on odd jobs only a few months before the crime.
While this chain grew stronger and stronger, there were those who believed implicitly in the carpenter's innocence. His wife, Anna, 32, mother of his 10-month-old son, was one. She said it was impossible for him to have either kidnaped or murdered the baby. She was questioned all of Wednesday night, Thursday and Thursday night, released yesterday, but questioned again last night. Police said there was no reason to hold her.
In Kamenz, Germany, his 70-year-old mother insisted also it was impossible for her son to have committed the crime. His sister, Mrs. Emma Gloeckner, who lives in Los Angeles, could not believe him a murderer.
Hauptmann was held on the nominal charge of extortion which the finding of the ransom money in his possession made easily provable, authorities said. His wife hired a lawyer, H. Bennett Saloman, but he refused last night to se him.
Hauptmann's defense will be that he received the ransom money innocently and actually spent only a few hundred dollars of it, his counsel, appointed today, said. The lawyer is James W. Fawcett of Brooklyn.
Col. Schwartzkopf of the New Jersey state police and Assistant Attorney General Joseph Lanigan conferred with Mr. Foley today. Questioned about the woman's footprint found at the foot of the ladder at the Lindbergh home, Col. Schwarzkopf said the print was that of Mrs. Lindbergh. He said no footprints of the kidnaper had been preserved in casts.