The New Bloomfield, Pa. times. (New Bloomfield, Pa.) 1877-188?, 1877-10-23
How Banks are Defrauded.

:. IT.
INEFFECTIVE II. A. PINKERTON
~ and his assistants have been for
months trying 10 hunt down the chief
of gang of check raisers and forgers
who have been operating successfully In
various parts of the country for over u
year, and who have selected banks and
express companies almost entirely to
swindle. Their plan was simple but
very complete, and failure was almost
impossible. They worked In couples
One would go to bank and purchase
draft on New York for large amount,
usually about 81 800. Later, he would
purchase draft for very small amount,
seldom over $40. The two drafts were
then given to the reiser," who did the
most skillful work the officers have ever
seen, and who is supposed to be William
II. Lyman. In short time the small
draft was" raised" to be the duplicate
of the large one in every particular of
numbers, amount, &c. Next, one of the
operators would go to another place
with the raised" draft and send it to
New York by express for collection; or
go to New York himself and have 1t
cashed through some respectable person.
Immediately after he got the money he
would telegraph words previously agreed
on to his confederates in the place where
the drafts were purchased. The latter
would go at once to the bank, and, pre-
senting the raised draft, ask that the
money be refunded, giving some excuse
for not using it-either that he could
not be Unidentified in the New York
bank, and so could not collect 1t, or that
the business he wanted it for had not
been consummated, or something of the
sort. The bank officials would recog-
nize him as the man who had purchased
the large draft, and give him back the
money. OF course, he would quickly
| quit the place, never to be in 1t again.
business, the other draft was sent back
from the New York bank to the country
bank, the forgery was discovered.
This swindle has been so successful
that the gang have realized over $40, 900
by it, and 1t is probable that, as new dis
coveries are made, the estimate will be
increased to a much larger amount. If
they had not used the express COM
panies they probably could have con-
tinued for longer time at work. When
a collection was made directly in bank
that was the end of 1t. The bank Off
GERS argued that it would cost more to
pursue the fugitives than the amount
they were swindled out of, and 30 quiet
ly submitted to the loss; but the express
companies had been bitten but once or
twice before they determined to spend
all the money that was necessary to
break up the gang, and to secure the
chief.
The American Express Company
thereupon engaged Detective Pinkerton
to prosecute the search, and, after unre-
mitting labor, he has brought 1t to a
successful close. William H. Lyman,
stenographer," has an office at "a Park
Row, New York, and there he was ar
rested last week by Detectives Field and
O'Connor of the District Attorneys of
flee, charged by Pinkerton with being
the leader, as well as the skillful work.
man who altered and F." raised'' the
drafts they used. He submitted quietly,
and had nothing to say. In his office
were found all the tools and materials
necessary for the work = chemicals for
removing ink from paper, various kinds
and shades of ink, and hair pencils. Be-
tween the leaves of a book were two
drafts for small amounts from bank in
Troy, one of which had already been
touched with chemicals. They also
found split paper currency, and, most
important of all, split United States
SIS geeenback, the sides being separated
one from the other. The Government
claims this to be impossible with the
paper now in use, in which silk and
hair are interviewer. ]. G. Hogan, alias
George Brown, Lyman's supposed part
ner, and the principal shover'' of the
raised drafts, was arrested soon after his
principal was secured He was found
in larger beer saloon in the Bowery,
just above Bayard street. He it was
who purchased two drafts on the First
National Bank of lie Roy, New York,
and sent one through the American Ex-
press from CatslSill for collection. The
warrants for their arrest was granted by
Justice Russell, on complaint of James
Fargo of the express company. They
were arraigned before Justice Flammer.
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