The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-04-25
Former United states District AttOr-
ney of Philadelphia, TAX
en- Into Custody Yesterday.
REVENUE COLLECTOR DOWNEY
ARRESTED AT LANCASTER AND
BOUND OVER FOR TRIAL.
Both Charged with Aiding in Flooding
the Country with Bogus Treasury
Notes and stamps.

PHILADELPHIA, April "a. Former
United States District Attorney Ellery p.
Ingham, of this city. and Deputy Internal
Revenue Collector Sam B. Dowrey, of Lam
caster. were arrested by secret service Off
GERS to-day on the charge of aiding the Lam
caster counterfeiters in their efforts to food
the country with bogus treasury notes and
internal revenue tobacco stamps The arrest
of Ingham created a great sensation on ac-
count Of his prominence and his former con-
nection with the government as United
States attorney for the Eastern district or
Pennsylvania. Those who are now under
arrest charged with completely in the great
plot are Ellery P. lngham, ex-United States
district attorney, of this city; Henry X.
hewitt, ex-assistant United States district
! attorney, of his city; Samuel b. Downey,
deputy internal revenue collector or the
Ninth internal revenue district of Pennsyl-
vania, OF Lancaster, Pa; William Jacobs, OF
Lancaster; William F. Kendig. of Lancas-
ter; Thomas Burns, Kendig's foreman; Ar
thur Taylor, expert engraver, OF this city,
and Baldwin S. Bredell. expert engraver and
mechanic, of this city.
Ever since the conspiracy was unearthed
last Thursday the air has been thick with
rumors OF further arrests, but the secret
service officers absolutely refused to open
their mouths in connection with the case.
That further arrests would be made was ev-
hent by the actions of the government offi-
cials during the past few days. John h.
Wilkie, chief of the secret service division
of the United States treasury. was in fire.
Quent conference with United States District
Attorney James NJ. Beck. who is lngham's
immediate successor. Yesterday these two
officials, accompanied by Captain w. j..
Burns, of the secret service, went to Lam
caster TO gather further evidence. That
their journey bore fruit was shown to-day.
With the information gathered at Lancaster
Mr.. Beck early to-day appeared before
United States Commissioner Edmunds and
swore out warrants for the arrest OF Ing
ham and Downey. Chief Wilkie and Capt.
Burns went to Lancaster this afternoon and
arrested Downey, while Deputy United
| States Marshal Foster took Ingham into GUS
tody at the latter's law office. Mr.. Ingham
was not surprised.
The ex-district attorney was Immediately
| taken before Commissioner Edmunds and
formally charged with conspiring with
Harvey hewitt, his law partner. ito prom
| Use, offer and give the sum of $1,000 in
monthly payments of $500 EACH TO William
J.. McManus, of Philadelphia, a secret serv-
ice officer, who was working up the case
against the five men charged with counter
feiting revenue stamps and the 800 silver
| certificates. Ingham waived a hearing and
was held in $1,000 bail for a further hear
ing on Thursday morning. Newitts hear
| ing, which had been fixed for tomorrow.
- -to--1l or t1at both man ~ hn
arraigned together. Joseph r. Grundy. of
Bristol, Pa, Newitt's bondsman, went Ing
hams bail.
Ellery z. Ingham has been prominent as
a Republican in State politics for years. He
was appointed United States attorney for
the eastern district of Pennsylvania by
President Harrison, but was succeeded at
the end of his term by James NJ. Black, who
received his appointment from President
Cleveland. During the last few years Mr..
Ingham has been a prominent figure at
State conventions, and on the stump as an
adheTent of ex-senator Quay
Judging from a remark dropped by Com
| missioner Edmunds while he was preparing
Ingham's BOND it is not believed any more
| arrests will be made in connection with the
case.
Chief Wilkie and Captain Burns arrived
here late tonight from Lancaster with
Deputy Internal Collector Downey in their
custody. The prisoner was turned over TO
Deputy United States Marshal Foster.
Chief Wilkie said to a reporter that Downey
had received between $500 and 1850 from
Jacobs as compensation to keep the latter
informed of the movements of the secret
| service men. On Oct. 10 last the chief
said, "Downey called at Jacobs's office.
The latter noticed that something was
| wrong with the revenue officer and asked
him what was the matter with him.
Downey informed him that he was in
financial trouble and did not know how he
would get out Of 1t. Then Jacobs offered to
loan Downey 500. The latter accepted the
offer and volunteered to keep Jacobs in
formed Of what the government officials
were doing, Downey knowing that Jacobs
was defrauding the government. From
| that time on Downey frequently touched
Jacobs for various amounts and got it. The
last money paid to Downey was on April II.
when Jacobs gave him $500"
In regard to the arrest Of Ingham Chief
Wilkie would not say much. A I can
say is this" he said, that Jacobs and the
rest of the gang wanted to get inside in
formation from the secret-service men In
this city. Ingham and hewitt were former
ly United States attorneys and knew much
of the inside workings of the government.
Jacobs knew this and approached them
cautiously. but he finally got there. To-
days arrests are the last that will be made
In connection with this case unless there
is more in 1T than we know now 1 am
perfectly satisfied with the result OF our
years work. In results II was the greatest
capture ever made by the secret service.
Taylor and Bredel had already put into cir
~culation bogus 500 treasury notes to the
amount of $4,000 and Jacobs and Kendig
had placed counterfeit stamps on boxes
containing between forty million and fifty
million cigars. The loss to the government
from the cigar stamps alone will amount TO
$4,000"
Arrest of s. II. DOwney.
LANCASTER, Pa, April 24-One OF the
800, fr,porfan+ or-aSrS in the great c0,1.ar