New-York tribune., 1908-02-18
MEAN BIG LOSS
Fake Currency Crculated-Rnlroad
Tracing Fraud.

While the auditors Of the New York Central
Railroad checking up the currency notes
issued to employees last fall part payment for
salaries, private detectives following a clew
which they hope will lead to the arrest Of forg
ers who have copied the notes and circulated
the false orders in cities from here to Chicago
The fraud, it was said yesterday at the audi
tors office. was discovered last December within
two weeks after the new payment system had
been started. Then it was decided to stop cir
culating the notes, and since January / the en-
ployes Of the road have been paid as formerly.
At the same time a request was sent out that
all the notes be returned the company as
soon as possible, but no explanation was given
for the abandonment of the plan.
The officials of the treasury department of
the New York Central deny that the company
has been defrauded. In the auditing depart
ment however, ii said that the loss might
amount TO several thousands of dollars when all
the notes were checked off and much regret was
expressed that the news had become public
While the currency notes are similar to checks
the holder IS not required to ;ndorse them before
they are cashed, and they can be passed in the
same way as United States currency.
In account with the railroad company the
notes are redeenabe at the Lincoln National
Bank, and are made in $40, $40 and $50 issues
For final payment they have to pass through
the Clearing House, from where they are re-
turned to the company. The first notes were
issued on December 3, when II was decided to
use the private money. or scrip during the fnan-
cial stringency. At that time several hundred
men on the divisions between New York and
Chicago received half their salaries In the COM
panys money, which was honored in stores and
even taken as rent in many cities
ding to +L
Of the auditing staff. the notes came in SO ran
idly that in many instances two Of then, STINT
larry numbered were received. It was at once
discovered that forgers were passtne Tho so-,r
whenever they had an opportunity Even after
the notes were declared invalid they were pre-
sented for payment, and after Investigation r.
was shown that hundreds of the papers were
being passed, although they had been copied
from the originals, which were made bv the
American Bank Note Company.
The fraud, according to detectives. has been
traced TO Chicago, where the largest number Of
false notes has been found 1t is not known
how much money was collected on the currency
notes, but the checking Of the figures will give
the railroad officials estimate 10 the actual
loss. Although the checking of the notes is not
yet complete, the treasury officials say thew are
sure there will be no loss and that the checking
will show that every note is bona fide AT the
same time the officials in other departments de-
Clared yesterday that the loss Of hundreds of
dollars was discovered last month and that the
tally Of the checks would show much larger
loss than was at first expected.
The notes were OF a new design and so ar
ranged that they could be passed from hand to
hand without any trouble They were used In
the West, but this is the first time that the pri-
vate money has been put into circulation here