The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-03-01
Robert E. Scott Arrested by
United States Secret Ser
vice Men at Anderson for
Counterfeiting.
ARGENTINE OFFICIAL
IMPLICATED BY HIM
Sheds Light on Conspiracy to
Flood the South American
Republic with Fraudulent
Bank Notes.

Robert E. Scott. formerly of this city,
was arrested Saturday at Anderson by
United States officials, charged with
being a party to a counterfeiting plot
to defraud the Republic of Argentina,
South America. He is now in the Mar
ion county Jail awaiting trial. lie has
confessed as to his share in the work
and duplicates prominent Argentina
Republic official as being at the bottom
of the affair.
None of the local SCOTS claimed any
relationship with Robert Scott. How
ever several prominent citizens, when
asked this morning whether they knew
him stated that they remembered him
and that he formerly lived in West
Richmond. These persons stated Scott
went to South America and became
interested in mining in Bolivia, but
further than this they had heard moth
ing regarding him. An Indianapolis
dispatch says:
Will Prove Scandal.
A counterfeiting plot alleged to in
volve prominent government official
of Argentine was disclosed Saturday
by the arrest of Robert E. Scott by
Lawrence Richey and Capt. Thomas
E. Halls of the United States Secret
Service. Scott was arrested in Ander-
son. where he had decided to do his
work, and in his possession were found
Photographic plates and prints of sew
eral Argentine bank notes. The pris-
oner made full confession of his part
in the plot and divulged information
which may lead to the arrest of the man
who was his undoing. Scott was given
hearing before United States Com
missioner Moores Saturday afternoon,
where he pleaded guilty and was bound
over to the Federal grand jury under
bond of 5000.
The machinery of the secret service
department is now in motion to bring
about the arrest Of other men connect
ed with the plot. It is understood that
ever since Feb. % the department has
been in communication with the au-
thorities of Argentina and the official
who is alleged to have promised Scott
$4,000 for engraved plates Of the notes
will be arrested Immediately. The de-
partment also expected last night to
make the arrest of Chicago photog-
rapher whose services Scott procured
in making negatives of the notes.
Scott told the names of the Argentina
Official and the photographer, but the
officers would not disclose them.
Has Water-Marked Paper.
SCOTS confession to the officers yes
terday afternoon outlined skillful sys-
tenn by which the republic was to be
the loser of many thousands of dollars.
Scott is shareholder in copper mine
at La Fontana, Bolivia, and had spent
several years in South America. He
told theoffcers that among the friends
he had made there was an official &C.
cupying a prominent place in the gov
eminent and in a position to handle a
great deal of the country's money. In
this manipulation Scott said that the
| official had secreted enough of the
water marked paper from which the
republic makes its bank notes to make
many thousands Of dollars worth OF
| bills. but that he was afraid to have
the plates engraved in the republic.
| Scott is said to have met the Official
| in Buenos Aires. where the ofhcial took
Scott into his confidence and asked for
his assistance in obtaining the plates.
He offered Scott $4,000 il he would
have engraved and turn over to him
| plates OF several different Argentina
| notes which were to be used in print
| ing the government paper already hid
den o cncaount of the dangers of de-
lection in the republic, Scott decided
to bring genuine notes to the United
States and have the engraving done
here. He left the republic last Septem-
Der and has been laying his plans since
| that time. He spent some time in San
Francisco. Chicago and other cities be
fore he picked out Anderson as his
place of operation.