The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-08-14
SHARP FINANCIERING.
The Pithole Bond Robbery in q
New Phase.
100000 Counterfeit Money for Three Pounds Of
Old Paper and One $1,000 Bond.
Brokers, Detectives and Sharpers
Outwit One Another.

In inc usual course OF events II came 10 tho KNOW
ledge OF General Butterneld SuD-Treasurer in this
city, and superintendent John A. Kennedy, OF the
police force that there existed an organized gang
OF nnancters, acting under the authority OF wall
street recommendations, whose chief business was
to negotiate the sale Of stolen bonds by throwing
them upon the market
For some time the names OF the parties attached to
this ring of thieves and thieves assistants been
In the possession OF the detective police but 1t was
deemed advisable to permit them to complete their
work before taking action for their arrest At the
ONCE Of Sergeant Kelso chief Of the detective squad
frequent complaints have been made by persons
doing business on the "streetr that they had been
swlnded by parties representing themselves as
agents OF bond thieves but the chief Of the force
and Superintendent Kennedy considered that men
who would c0ndescend to act as negotators between
burglars and reputable brokers were no better
than thieves, they declined to assist tine complain
ants In obtaining redress.
Among these compartments was Wall street out
side operator, named Steyne, who represented that
on certain night he had met one Of the agents OF
the bond thieves under gasight, and gave 5000
In genuine funds for $780, 900 in what he supposed to
be genuine stolen bonds, but which subsequently
proved to be package Of sawdust.
Another go-between some days ago represented at
police headquarters that he had been swindled out
or $1,000 In the same manner These parties, well
as many Others who for years have borne reputable
names In financial circles asked Cor the arrest OF
the alleged swindlers, but the detective police tailed
-Four days ago General Butteraeld through one Of
the Treasury agents-Mr. Sampson informed the
Superintendent Of Police that there were In this
city q number OF persons dealing IN stolen bonds,
and asked Mr. Kennedy to assist in their capture.
The superintendent at once conferred with the
ana obtained some ~ points
had arranged for the purchase OF $4,000 or the
bonds stolen from Mr.. Bennehon. OF Pithole, Pa,
for 600 in greenbacks the sale to be completed
on Thursday at Hudson city. The Superintendent
at once conferred with Chief KeIsO, who detailed
detectives Eustace, T1Iley and Tuly, Of his squad
to assist the United states authorities. N
On wednesday these officers reported to Mr. Samp-
son. OF the Treasury Department. and after con-
ference plan OF action was agreed upon. 1t was
agreed that q Wall street broker, whose name Is
suppressed for obvious reasons should complete the
negotiations. man named KOsch, detective OF
the Treasury Department, was named as the repre-
sentative OF the Wall street broker He had several
interviews With three men At various points In this
city and Hopoken, the result OF which was that at
two O'Clock on Thursday afternoon he was 70 meet
them at kosch's Hotel, corner Of Third and Hudson
York were there, but there was no nego-
tiatiOn-the sellers giving as an excuse that they
had failed to secure the bonds Two O'Clock yester-
day was agreed upon a. the hour for completing the
purchase and exchanging the money.
While these negotiations were pending between
dealers Kelso's men were occupying room on the
opposite side Of the street, which they had hired Tor
hotel. At the hour named Rosch entered room No.
~ the top Of the house, with package contain
ing $loe IN counterfeit tens twentes and tties,
which he passed to the men, and received IN return
package purporting to contain $l25.ooO In Pithoe
stolen bonds. KOsch took the package, walked out,
met Eustace. Tlley and Tuly, who Immediately sur
rounded oil the doors three In number) OF room 81
aud after lively fight IN which the men attempted
to resist and the Ocers were forced TO intimidate
them with revOvers they were secured and tue
$780, in counterfeit money found upon them.
The Officers at once escorted their prisoners to the
ApRtF Dali 100 In Not nnf yVnl TIM f,ra
requstlon where they were locked up on the charge
OF false pretences.
contain $685. 900 OF tue bonds stolen from Mr. Benne
hon. for the recovery Of which there Is large re.
one genuine 900 bond. and about three pounds
weight OF old newspapers.
The parties arrested gave the names OF John Laid.
Brown and their profession brokers. They VIII
be to the Tombs Police Court tins morning. but
100000 counterfeit money It Will be dirficut to
convict them. Nevertheless the detective officers Of
the city and nation acted in good fah ana If they
have been put in hole by the 1nanciers in their
efforts 10 secure the stolen Pttnoe bonds IL Is no
fault OF theirs.
the following memorandum, showing that the $1,000
bond was purchased yesterday
BANKING HOUSE OF FIsKs 4 HArou)
Sold to M. Berth. S G.sn, xSnS; A sf 49, i
The detectives last night were I'm consultation
until late hour with the United states Treasury
officers.
1t Is alleged that the accused have made immense
sums by representing that they had influence with
the internal revenue Oiiicers and by showing fac
Smiles OF Sheridan Shocks receipts, seals and
stamps, inducing dishonest liquor manufacturers to
pay them for their influence. Officers OF the Trea
sury Department who were at the Central ONCE at
late hour last evening state that the prisoners have
made large sums out OF tho tobacco men, whose
confidence they secured, and whom they SUCCEEDED
In victmizing The facts will come out before the
court this morning. when It Is expected numerous
coupa.nants VIII appear, unless they are deferred
by the ie ar Of compromising themselves