The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1896-11-12
THEY WORKED THE BANK
DRAFT RACKET TO A
FINISH.
IRE NOW IN CUSTODY IN NEW york;
a Brief History of Their Plans OF
Operation in Several States
and the Results

New 1ofk, NOV. O.--lhc police author
tiles have run TO earth II quarcttc of
criminals who have been flooding the
country during the past few months with
dangerous forged bank drafts and have
swindled banks both in New York and
Chicago. One of the principal conspira-
tors, who gives his name as James.
Thompson, although that is fictitious
name, has been for several days in the
custody of the police and has turned
states evidence.
Upon his testimony the grand jury to-
day found an indictment for forgery
against Walter Peters, one of the combi--
nation, who was captured today in Chi
cago, and is now under arrest in that city
He will be eXtraditcd to New York for.
trial. The operations of the gang show
shrewdness, while the sums of money.
they secured have not been large, their
arrests are considered most important
The combination to defraud banks by
these bogus drafts was formed in the
west the members being Walter Peters,,
Willis Herbert Corners, w. IL. Smith
and Thompson. Peters is d lithographer
and did most of the work, and Is, there
fore, considered the most dangerous of
the four men. For some weeks Pinker-
ton men have been following the four.
and they have secured great amount of
evidence. The plan of the quarettc was
put into operation last June, when Peters
made a photographic plate Of draft of
the Lincoln National bank of Chicago on
the Lincoln National bank of New York.
Smith and Corners were travelling
Through the west ostensibly as drum
mers, and Peters would fill out the drafts
and send them on to the two men. who
would jpass them on hotels and business
houses and even on banks. Indiana and
Ohio was well worked by the two men,
On September 10 Peters and Smith
came on to New York. They went to the
Marlborough hotel, where they registered
under the names of b. :. Matthews and
G. @. Jones of Fort Wayne, Ind. While
there Peters began making counterfeit
draft of the Park National bank of
Cleveland, o. After they. had been in
the hotel few days they became fright
ened and left, leaving their board un-
paid. Later they took rooms Mt the Ho-
tel Albert. Peters was known as VIII
liam PicrsOn and Smith as William,
Rhodes. In the Hotel Albert they finish
ed the stone and then printed the draft
One of these drafts is now in possession
of the police. 1t was filled out for S125
and purportcd to be from the Park Ma
National bank of New York, was made
payable to II. A. Leslie and was signed
John Sherwin. cashier"
COnnors was in New York at this time.
and was specializing with j. IL. Willard
a. Co., bankers, under the name Of Frank
A. Russell. Corners owed Willard 81
Co, who cashed the draft, paying HIM
$50 in change. .ar
Smith was sent out on the road with
bogus drafts. At Port Jarvis he was de-
tccted by hotel keeper, who had him
arrested lie was sent TO Jail, but man
aged to break out
Smith moved TO Buffalo, where he
counterfeited draft by the Third Ma
tional bank of Buffalo on the Third Ma
tonal bank of New York. Then Smith
and Connors went to Michigan, where
they again passed as travelling men, rep
rcscnting a. l.. Fairbanks, advertising
agent in Buffalo. They received bogus
letters inclosng the drafts These they
passed, and Peters kept filling them out
Finally Corners was arrested in MICH,
gan. This was about the middle of De.
tober and at Flint, Mich, he gave evi
dencc against Thompson and caused an
indictment TO be found against him ira
Michigan. The police of this city were
not"tu " "Ironl inonpSon anu nave
had him here since Monday On Tues
day word was sent TO the police in Chi
cago to arrest Peters. Extradition papers
have been secured. Smith has eluded the
authorities since his escape from Goshen
Jail.
Arrangements will be made with the
Michigan authorities, so that Thompson
will not be sent back there for trial. II
has been found that no less than thirty
drafts for 500 each have been passed in
the west