The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-09-05
GREAT PENSION FRAUDS.
WARRANTS OUT FOR MEMBERS OF
A GANG OF SWINDLERs

who Draw the Pensions " Arrests. |
United States Special Pension Examiners A.
W. Roome and James J. Reilly believe they
have unearthod q big most of pension swindlers
in this city, and from what they have already
learned 1t 10 believed that several hundred
thousands OF dollars have been obtained from
the Government by the s~windlers, who are sup
posed to have been at work here and In Boston
for at least two years. For six months the pom
sion examiner have been doing detective work
here and In Boston. A big batch Of warrants
was issued on Friday and another batch yestor.
day. Detectives and deputy marshals took tho
warrants last night and started out to execute
them, but In some manner tho members of the
gang learned that they were about to be arrested
and disappeared. The Government officers sue
ceeded In tracing the swindlers, however, and
believe that they will soon have the entire gang
In Ludlow Street Jail.
The frat arrest made after the warrants were
issued was that ofa good looking young woman.
who said she was Nellie Cahill. and that she wal
% years old. She was arrested by United States
Deputy Marshal Koch. He found her at
her residence, 1913 yandam street, Long
Island City. on Friday, and took her immedi-
atoly to the Brooklyn Federal building. where
she was arraigned before United States Com
missioner Oakley and held in 81 900 bail for ex-
animation next Friday. The warrant on which
this arrest was made charged the young woman
with violating section $500 OF the United States
Revised Statutes. II she Is convicted under
this section sho is liable to a fino Of
$1,000 and Eve years. Imprisonment The
warrant was issued on the complaint
Of Special Examiner Roome. 1t is alleged that
the young woman has been collecting pension
money AZ the daughter Of an old soldier. while
in reality the old soldiers daughter died in 1892.
ThrAn athar ,,araana 49, f,,,l;,nNaJ fn Nhn aa,no
case. They have not yet been caught, although
warrants for their arrest were issued on Friday.
These three persons are said to DO in this city,
but the Government officers failed to find them
at their homes last night At the United States
pension agents Office all information concerning
the discoveries Of the pension frauds was re-
fused. From another source II was learned that
there were nine cases similar to that in which
the Cahill woman figured. The person who vol.
unteered this information said:
Tho Pension Office special examiners. who
came on from Washington especially to run
down the gang Of swindlers. discovered that
there wero nine cases In which the swindlers
had succeeded in collecting pensions quarterly
for q period Of five years after the persons emit.
tied to them had died. There were twenty-five
cases that ran along for three years. and thirty
one cases in which pensions had been collected
for two years or less. In all OF these cases the
names of persons who had died were found
signed to the quarterly vouchers and witnessed
by notaries public. Just how much money has
been obtained from the Government In this way.
through the New York and Boston pension
agencies. 10 not known at present, but 1t Is safe
to say that the sum will be In the hundreds
OF thousands OF dollars, rs some cases were dis
covered that ran back for q period of ten years.
others twelve years. and ono or two fifteen
yeara It 10 tho intention OF tho authorities to
have al tho persons concerned In these frauds
sent TO prison. Tho pension agents here and in
Boston will not know until about Nov. 10 the
exact amount Of the swiudlcs. but by that time
the special examiners believe they will have In
custody all OF tho persons engaged In these
frauds. Although only ono regularly organized
gang was discovered. the special examiners
have succeeded In unesrthipg 30 many cases
that they are satisfied there are more
gangs carrying on similar work. At the New
York agency alone $4,000 pensioners are paid
2aA On that t dste ,t the P Ssm 9or Tas o msse p SI dA oSi
s sSsSar e., (. 8 s 600 S9S i ol MA wi %|,. aa aaSs Z
erss me swindlers succeeded in slipping in and
tincates that expired years ago, when the per
sons entitled to the pensions died.
Many Of these certificates under which the
fraudulent pensions were collected were pledged
With saloon keepers and money lenders. Old
bolulorb VINO na0 been injured In the war and
who he'd been, collecting pensions for their in
9uries pledged their pension certificates with
saloon keepers to whom they we're indebted. 1t
was n custom for these saloon keepers TO get the
old soldier to mention the saloon address in the
vouchers. After these vouchers had been re-
ceived in the Pension ONCE 1t was customary
for the pension agent to mail q check to tho adj
dress stated in the voucher. Then. of course, tho
containing the check from tho Pension Once.
He would cash the check after the old soldier in.
dorsed II, and then give the old soldier q few dol
| lars out or III. keeDiDR the remainder for limaelf
A na. the falcon on t heeP psm Kept tho certificate r. Heat In his rs
was entitled to the pension. even alter the old
tiacate to the Pension Once. tho saloon keeper
forging the dead soldiers signature Cases
have been discovered in which women who were
the mo money %Ss r alter tho no t bsne siSasnS'1afIS .d 10i TSsss
were other cases where the ~forgeries and per
Since this 5IE fraud has BEEN snesrihed the
Government ~of1oials have decided to put a stop
to pension on sh5ioeSingi It has been a Comm9sn
Gates as security for debts or for loans OF money
iaSns 70 o PAY ybs sI SsrPissato SUM n for the csp,YY,
Gates belong to the Government. They are
Government property. although the majority Of
not know that 1t 10 a crime to hold one OF these
certificates. Consequently there are Thousands
pie who have no right TO them. Every one OF
these will be recovered by the Government. and
mentioned.
Yesterday several complaints wore made,
and a number Of warrants were issued. One
arrest made was that Of Owen Mccall, VINO
lives at 1875 Fifth avenue, Brooklyn. He held a
pension certificate belonging to Edward J. Foss.
Company K Of the Fifth Vermont Volunteer In.
fantry. His pension certificate entities hin to
q gunshot wound In the shoulder. The $50 was
due on Aug. 4, but az he did not have HIS certih.
cate he was unable TO, collect II. In other
words, he was unable to execute his
voucher. 1t 10 customary, whom sending out
checks In payment of pensions, for tho pension
agent to send q blank voucher with the check,
next quarterly payment Is due. On May 4 one
Of these blank vouchers was sent to Veteran
Foss. He filled 1t out but could not get a notary
public who would acknowledge II. because hi
Was unable 70 produce his pension certificate
had been a saloon keeper AZ Bedford and Down
ing streets. Foss went to the Pension Office and
stated that Mccall had his certificate and
wouldn't glyo Y up. AS the special examiner
wanted to break up the hypOthecating business
they immediately went after Mccall.
Special Examiner Reilly went TO Mccall ant
/ d0manded tho OartiicatO saving n xvaa Gnvarn