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The FBI intensified their search, and began a national campaign to bring Cretzer and Kyle to justice. Joe was said to enjoy his notorious high-ranking status as a Public Enemy. Joseph Cretzer was now ranked number four on the FBI’s Most Wanted List. He and Arnold decided to leave the Bay Area, since the FBI would likely be concentrating their search efforts throughout the Northwest. Jim Courey, unable to face the prospect of spending his life in prison, committed suicide in a Los Angeles hotel room when agents sought to arrest him.

In an effort to maintain a low profile, Cretzer and Kyle made a quick journey to Chicago, hoping that they could thus escape the watchful eye of the Bureau. Kyle stayed only a short while, then continued his travels back through Denver, Colorado, and on to Wichita, Kansas. He was finally apprehended on May 19, 1939 in Minneapolis, following another robbery. Kyle would not reveal the whereabouts of his other accomplices. While in Chicago, Joe and Edna had bought and operated another hotel, this time attempting to run a legitimate business. However, they had underestimated the magnitude of the FBI’s search effort and were apprehended in late August of 1939 and extradited back to Southern California to be tried for one of their earlier bank robberies in Pasadena. The FBI reported that Edna would stand charges for harboring a fugitive, and also that she was a suspect in the shooting of a police officer in Michigan City, Indiana, which had occurred earlier that year. She would eventually be sent to Terminal Island in Southern California, where Al Capone had briefly been incarcerated after leaving Alcatraz.

During the preparations for the trial the Federal government intervened, claiming that they held ultimate jurisdiction and would elect to try both Kyle and Cretzer in Washington State before addressing the charges in Southern California. The defendants’ cases also attracted a high level of media attention, with pertinent events regularly reported to the fascinated national public. Arnold Kyle and Joseph Cretzer were put on trial for the robbery of three Seattle banks and both were convicted on February 8, 1940. Both were given twenty-five-year sentences at McNeil Island, a Northwestern Federal Penitentiary located in Puget Sound, Washington. The official conviction report would declare them guilty in the case of “National Bank Robbery.”  Cretzer had already started to build his résumé for Alcatraz, when officials caught him with a handcuff key in his mouth, which he had fashioned from a belt buckle. It was noted that the key was almost an “exact duplicate” and “greater measures” would be needed to contain Cretzer in prison.

Both Kyle and Cretzer arrived at McNeil on February 15, 1940, and they maintained a close relationship, just as when they had served time together at Preston. On April 11, 1940 the two were assigned to a labor detail, from which they attempted an escape. Armed with the axes they used for cutting roadside trees, they stole a prison truck, slammed through the yard gate (nearly running down a prison guard) and drove to a remote area.  They then fled far into the woods of the four-thousand-acre island (Alcatraz in comparison is only twelve-acres). The duo hid for three days without food or water, attempting to keep cover under heavy brush, until they were finally captured and immediately placed into isolation.

Following the attempted escape, it would almost seem as if Cretzer didn’t feel that he would be convicted of any serious crime. In a letter written to his wife, who had just been released from Terminal Island in Los Angeles on May 27 th, Cretzer wrote: “The charge is not serious & nothing to become alarmed over. We are being treated exceptionally well & feeling in fine spirit. I am certain everything here isn’t as serious as it appears.”  On July 20, 1940, the two friends were tried for unlawful escape at the U.S. District Court of Tacoma, Washington, and both entered pleas of not guilty. As a result, they were given a full trial. But on August 22, 1940, during the noon recess from the proceedings, they viciously attacked U.S. Marshal Artis J. Chitty, causing his death. The following is a report sent to the McNeil Island Warden by Lieutenant C. Zukowsky, who had supervised the inmates while they were in the custody of the court. His report describes in detail the events surrounding the Marshal’s death:

August 23, 1940

To: PJ. Squire, Acting Warden

Via: L. Delmore, Acting Associate Warden

W.F. Swift, Acting Captain

From: C. Zukowsky. Lieutenant

Subject: DESPERATE ATTEMPT BY INMATES KYLE AND CRETZER, AND DEATH OF MARSHAL CHITTY.

Sirs:

Thursday, August 22, 1940, Lieut. Bass and myself were detailed to go dress out inmates Kyle and Cretzer for court. Upon the arrival of the Marshals at the institution, Inmates Kyle and Cretzer were turned over to the custody of Marshal Chitty, Lieut. Bass and myself accompanying the Marshal to the Federal Building, Tacoma. We left the Island at approximately 08:40 a.m. arriving in the Marshall's Office at approximately 09:40 a.m. The Marshall immediately locked inmates Kyle and Cretzer in the Detention Cell at the Marshall's Office.

At 10:00 am inmates Kyle and Cretzer were taken into court. The trial of inmates Kyle and Cretzer inmates immediately began, and at 12:00 noon was recessed for lunch, court to begin again at 2:00 p.m.  Inmates Kyle and Cretzer were handcuffed together (Cretzer's right arm to the left arm of Kyle). Then they were led back to the Detention Cell and locked up. Lieut. Bass and myself relieved each other for lunch, I returned from lunch at approximately 1:40 p.m. and seated myself on the corner of a table in the Marshall's office, directly in line of Detention Cell front, approximately twenty feet away. At approximately 2:30 p.m. word came in that court was ready for inmates Kyle and Cretzer. Marshall Chitty unlocked the cell door and called the inmate's attorney to come out of the cell, as soon as the attorney had passed out of the cell Marshall Chitty called for inmates Cretzer and Kyle to come out. At the time the Marshall called he was standing in front of the open cell. Inmates Kyle and Cretzer were seated against the wall.

As inmates Kyle and Cretzer were arising from the bench, inmate Cretzer called to Chitty, and beckoned with an upward motion of his head; at this point Marshall Chitty stepped forward into the cell, and at the same time Inmates Kyle and Cretzer moved toward Marshall Chitty. As I saw Chitty step inside the cell, I automatically moved toward Marshall Chitty. Marshall Chitty made two steps forward into the cell, Inmates Kyle and Cretzer made the same move toward Marshall Chitty. I was about at the open cell door when inmate Cretzer applied the "Inside Waist Hold" from the front, on Marshall Chitty. Inmate Kyle's left hand was handcuffed to Cretzer's right hand, Kyle attempted to swing around to Marshall Chitty's back and was reaching with his free right hand for Marshall Chitty's right hand rear pocket.

   At this point I knocked Kyle's right arm downward, the memento of the same swung Kyle around backward. I then stepped between Marshall Chitty and Inmate Cretzer, Cretzer releasing the hold, just as I was forcing Chitty away from the pair. Inmate Kyle with his free right hand started a long right swing, striking Marshall Chitty a blow on the face. Marshall Chitty fell face forward, I immediately forced inmate Kyle to the floor. As inmate Kyle struck the floor he thrust his free right hand toward Chitty’s right hand hip pocket. At this point, Marshall Chitty was laying face downward on the floor; I noticed the gun in his right hand rear pocket. As Inmate Kyle's hand reached the Marshall's holster, enclosing the gun, I dropped to my knees, pinning his right wrist with my left hand, and pinning his arm down with my left knee. Inmate Kyle attempted to rise up more on his right side but I forced him down, to lie on his back. Freeing Kyle's right hand from the holster and gun, which was still in Marshall Chitty's right hand hip pocket, I bent his arm upward and toward his head.