The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1892-08-05
TO DEFRAUD BANKS.
A Gigantic Conspiracy Unearthed
by the flight of a Teller.
HOW THE PLOT WAS EXPOSED.
Teller George Bartels's Dis
charge from tho Central Trust and
Savings Bank and His Flight with
$4,000 :. How tho Syndicate"
worked Their systcr and the Meth.
cd They Employed in chock.Kitlns

CHICAGO, ILL, August 4.-Ihe oIs-
honorable discharge OF Charles Bartcls,
paying tcllcr of tho Central Trust and
Savings Bank, and his subsequent
fight with 5000 cash, has unearthcd a
gigantic conspiracy to defraud five Chi
cago banks. Tho schcmo was partly
succeesfrl, and ovor $4,000 was secured
from Basiels's former employees, but
was made good by reputable mon who
had youched for tho integrity of the
young man who had engaged in the
deal.
Another bank is said to hayc lost
$4,000, which amount was also made
good by the same security.
Tho arrest OF William A. Forbes, N.
W. Burnside and Charles N. Arson has
exposed the plot. This trip was IN the
employ OF tho Chicago Bank Note COM
pany, and asa result OF the arrests John
B. Gubbles, former president Of tho
concern, has asked for q receiver.
Forbes was manager Of the Chicago
Bank Note company, aud Burnside. a
son OF a we'll known physician. was u.s.
ISOLATED with Forbes. Arson was an
employe Of the firm. These young men
were youched for by Gen. Alien q:
Fuller and humorous menof wealth and
financial influence.
They openod accounts with the Cen
trail Trust and Savings bank, tho Globe
National bank, tho State bank Of Chi
cago, the First National bank and the
Milwaukee avenue State bank. 1mme-
diately they deposited checks, drafts.
ETC., which have since been found to DO
fraudulent, and later drew out the cash
BY collision with Bartels tho great
run OF the paper was dumped on tho
Central Trust Savings bank. The sys.
TEN that was developed was the work OF
months. The teller, in the absence Of
the cashier, certified all paper, and the
forged drafts, checks, &c, wore only de.
posted when the higher officials OF the
bank were out. The same system was
played on the Globe National. it is said.
although Vice President Stone was not
in the city to-day TO affirm or deny the
statement.
It is now learned that the plotters in.
tended to put all the banks they had
deposited money with into their net
and then break up and clear out How
ever, that may be, the paper came to
protest too soon to admit OF moro eS-
tended fraud, and the ring was brought
up with a round turn.
The amount, tho Central Trust and
Savings Bank found itself short was
nearly $4,000. The bank officials had
taken every precaution to secure them
selves, for while they had been COM
PEELED te accept the forged papers of
their customers, they were suspicious
early in the game. When the end came
Allen G. Fuller, who is reported to be
worth over $l0,000,000, and DIR, Burn
side, his hrother-in-law, both OF whom
had implicit confidence in the young
men, paid all the shortage, and none Of
the banks is out cent. Owing to the
high standing OF the parties implicated
in the conspiracy, the matter has been
kept quiet for some time.
Barrels is wanted both by the bank
and the American Surety Company,
which made good the money he stole.
Charles r. Nichols, member OF the
Syndicate" has made full confession.
He told how he was instructed in kit
ting, checks. In his affidavit he says:
eAll deposits with the Central Trust
and Savings Bank we're spurious. In
this business of Hitting the Chicago
Bank.Note Company was In the habit
Of making drafts on III. I. Seymour, OF
New York, for $1,000 each, payable at
certain place in New York. They would
-. t- 4 .ofks far f,o vi 011 n m ott n 10 m nor,
sons in Detroit or other cities, all Of
which drafts were drawn without any
consideration or without investigation
on the part of the persons on whom
they were drawn or any intention on
their part to pay the same, or any ex-
pectation on the part Of the bank-note
company that they would be paid.
no meet the payment OF these drafts
in New York tho Chicago Bnuk-Note
Company would cause the Central Trust
and Savings Bank to send its draft or
exchange to its correspondent in Now
York TO take up the drafts at thcplnccs
where the same were payable without
any effort intention or expectation to
collect Of the parties to whom they were
drawn.
aThis exchange, however, always
failed to reach Now York in time, and
the drafts were returned to Chicago I'M
paid aud wero taken care OF hero by tho
bank-noto company. No effort was
made by the drawoe to pay the drafts,
as he did not owe tho banS-note com.
pany, nor was it expected that he would
pay them or any part OF them"
Tho drafts drawn on parties in Do.
troit were taken caro- OF thcrc by chesGs
of Fred W.. Thomas, james a, Forbes
or Forbes, Thomas & Co. Ho further
states TINT undcr instructions from the
Chicago Bank-Note Company he mot
Teller Dartels, o. tho Central Trust
Company nightly and took him to dis
orderly houses ind pliod him with liz.
uor, Nichols paid all expenses out of 4
fund furnished by tho bank-notc COM
pany Tor the purpose.
Said the manager OF Tho Central
Trust and Savings bank: eve wero not
suspicious of Barrels for tho reason that
all Of tho time he waa accepting bribcs
from young Burnside no was apparent
ily candid with US, frankly saying that
ne suspected tho deposits wore 'kitng,'
and no suggested my getting tho gen
oral guaranteed Of all tho transactions
from DR.. Burnside. which, while 1t
cayc a little longer lifc to their scheme,
actually secured the bank against sny
ultimate loss.
'sT,he $500 Of missing vouchers for
which Rartels gxyo US security have
since boon discovered and are In the
hands Of an officer Of tho bank-notc
company, showing that the company
deliberately concealed thom in order TO
deiraud some ono out OF that amount"