The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-08-21
Sold to junk Dealer, who Turned
Them Over to the Secret-Service
Omcers Last Night.
MANY NOTES ALSO RECOVERED
WE'RE PRINTED BY THE NEW
BRUNSWICK BANK YEARS AGO.
Sold as Waste Paper When the Bank
Went Into Observation-Disclosures
Number in Circulation.

SAN FRANCISCO, Cal, Aug. 20.-Secret
service officers have arrested i'm this city
three men accused of passing bank notes
purporting TO be issued by the State Bank
of New Brunswick, N. j., an institution
long defunct The plates had never been
destroyed, and in the hands of some Grim
inal have furnished over a million notes in
denominations ranging from 81 to $40,
which have been distributed all over the
United States. On information furnished
by Frank j. Perry, who was captured a
week ago. the officers have just taken into
custody William Hogan and e. w. Smith.
The latter, according to Perry. is the lead
er of the gang, and has for eight years
been chief clerk of the federal life-saving
service in this city. He has been released
on bail. but the other men are in jail.
Other arrests are expected to follow to-
day.
NEW YORK, Aug. 20.-The government
secret service officers tonight visited New
Brunswick. n. j., and obtained possession
of the plates and nearly 100000 face vaI-
ue) of the notes of the old State Bank of
New Brunswick. The notes were not re-
printed from the old plates, but were gen.
timely printed thirty years or more ago by
the bank itself. but were never signed by
the president and cashier. Lax methods in
winding up the affairs of the bank twenty
eight years ago seemed to be responsible
for the alleged swindle in other States with
the bank notes as basis.
The bank went into liquidation some
years ago. Col. John A Newell was at that
time appointed receiver and wound up the
affairs of the institution. He has since
died. In the course of his operations he
sold the old note plates to Adam Ludwig
a junk dealer. of New Brunswick. The
sale was as old metal. The junk dealer also
bought the waste paper and all the junk
out OF the bank. In the waste paper he
found about half million dollars worth
of notes. These were in the original sheets
and uncut and unsigned. These notes he
sold or gave to Jacob Weigel. who is a col
lector of coins and old notes and who has
a very large collection, one of the most ex-
tensive in the country. He kept them some
years and then began to dispose of them to
coin dealers. He sold many of them to
reputable dealers in all parts of the coun-
try. He received nominal sums for his
sales.
Among others. he sold some to Green's
burg & Smith, of San Francisco. This firm
Mr. Weigel says; afterwards sent him
large orders for the notes and in all pur-
chased some $4,000 worth counting their
face value. The plates remained in the pos
session of the junk dealer.
Tonight the secret-service agents saw
Mr. Weigel. They were satisfied with his
explanation and he gave them what he had
remaining of the notes, except those he
kept for his collection. He was not ar
rested.
Ludwig. the junk man. turned over the
plates. These were still in the package in
which they were wrapped after last being
used. The seals were unbroken. They bore
the seal of the bank and also that OF the
receiver and there could be no question
that they had never been used since last
the bank ran off lot OF the bills.