The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-08-19
GIGANTIC F0RCERIES.
Capture of Dangerous Band
of Swindlers.
FRAUD SYSTEMAIIZED.
Pseudo Members OF Legislatures aud Mer.
chants Implicated.
ARRESTS IN CHICAGO.
Raising Checks in New York and
Other Large Cities.
icy TEIAGRApH TO THE HERALD. I

CHICAGO, August Is, 1877.
One Of the most stupcndous forgery cases of late
brought before the public has just developed itself
here It appears that about ten days ago Mr. Austin
aud another New York detective arrived in Chicago
and began working up a case, in which they wero
assisted by local officials Their operations wore kept
very quiet, but Oh Wednesday the haa so inr
developed itself that 1t became necessary TO take
active and public steps, and accordingly warrants were
sworn out before justice OF the peace the arrest
OF three men. whose names II now transpires
Nelson A. Gesner, f. 7. Henderson and T.. b. Weston.
Two OF these men were arrested at the Sherman
House last night, and by constable taken to the
Grand Pacific Hotel, where they were held in the
rooms occupied by the New York officers On being
searched $50, 900 in money was found their per-
sons and this deposited in the safe OF the hotel
EXTENSIVE swiNDLERs
II is alleged that these are members Of ono Of
the largest and bodest gangs OF ogers that hauc
operated in the country. and that their oper atoms
have ramiled to nearly every part of the United
Statcs SO successful have they been that they are
said TO have rcapod more than S40O, 900 by raising
bank checks and orgcrlcs during the year just past.
Gcsner, Is said was, until quite recently paymas
ter In the army and stationed IN the West. Tho chief
operator and director Of the whole business is SAID 10
be u banker or bank clerk In New York CITY. The
operations OF the gang have been carried by one or
two of them locating In some town and engaging in
business until they had established reputation COM
mercally and financially. Then. after exchange OF
genuine checks aud drafts and the securing thereby of
signatures, they would resort to false commercial
paper aud the raising OF small amounts on genuine
exchange by uso OF chemicals, &c
RoBDlNG SEw INSTITUTIONS.
Two Of the men who arrested hero recently
went through Burlingt on, Iowa. for large sums and
then came to Chicago to follow up the swindng
schemes. Another OF the party has made his head
quarters at Minneapolis, Mum. and It is said sue
cceded in capturing 500 600 from tho Lake City Ma
tionul Bank. at Lake City, MIMI This man left Min
noapolis yesterday on Mississippi steamer bound
down river Another, known as Colonel
Cross, was arrested in st. Louis tonight,
whilo still another OF tho operators was
captured in Michigan. The three mon who
arrested here charged, among other crimes,
with passing forged check tho banking house OF
WinsIow, Lanier Co.. OF Now York. to tho amount Of
S2996S IS. 1t Is also charged that thoy raised drats
Milwaukee bank for $500 to 81 900; that they got
nearly e. 900 out OF the Third National Bank here and
that they passed raised check drawn by tho Now
York Iilo ,lnsurance Company. The amount OF the
latter Is not made public For four months New York
detectives have been actively at work ferretng this
| gigantic swindle. Parties have been sent capture
the Minneapolis member OF the gang and It Is probable
| ho will soon be in tho keeping OF the officers.
| Colonel Austin a banker from Dover, n. H., and
tho detective was Jayne OF New York of the govern
ment force Tho man Henderson Is also called Stew
ems and Is a Spectator and business man, who has
had of aliases He has permane place of
residence and recently wont from Railway, n. j., to
Michigan, TO spend few weeks with his family. He
was arrested in that State Gesner Of late a
member OF the Minnesota Legislature, and is consid-
cred a sh rewd operator
CAUTION NEEDED
There acquisitions used In arrestng these
men, as parties who have been working tho case up
were AFRAID trust the matter in the office OF tho
Attorney General at Now York. About four month g
ago the case was placed in the hands Of the Now York
police, and completely sold out
by person that great caution has had
to be exercised since The who nego-
tatcd passed nearly all the forged checks is
reported to DO still in New York. and will be arrested
at the earliest moment. The cheek, which was drawn
bv Wns!ow Lanicr & Co., was the Third National
Bank Of New York; that OF the New York Life nsur-
ance Company was the Union Trust Company, OF
New York, and for nearly $40, o)o