New-York tribune., 1912-04-15
nF7r'TNF2 SEEKING
BLACKMAILERS HERE
New Berlin Bank EmbezzIeT Only
One of Many. Victims, 1t
Is Believed.
ARNOLD PAID THOUSANDS?
Gang Said to Operate Through
Concern in Financial District,
Selling Worthless Stock
of Syndicate.

Al ...eresting line Of criminal invesu-
gat..n has developed here in connection
with the case OF Frank T. Arnold, the
defaultine cashier OF the First National
Bank Of New Berlin Detectives who
have been working in the interests OF
the New Berlin bank are after the mem
hers Of notorious blsckmailing gang
who are known 70 have headquarters In
this CITY. Instead Of eXtOrting a few
hundred dollars from Arnold as has
been stated. the blaclmailers have con
sistently mulcted him of thousands of
dollars during the last few years, II was
said.
These hlackmailers are said to have
had knowledge Of Arnold's peculations
from the bank for a long time, and to
have held the possibility Of exposure up
10 him so persistently that ne continued
10 steal more and larger amounts to sat
isfy their demands The possibility of
recovering a substantial amount of the
banks money which went into other
hands than Arnold's led the detectives
10 pick up the trail Of certain men IN
Is said to have left the city suddenly
since Arnold confessed his emoezzie-
ment. 1t is believed that he sailed for
a South American port.
Evidence Not in Shape Yet.
So far the detectives working on the
case have not the evidence in such shape
as 10 proceed 10 arrest any member CT
the blackmailng gang, but there are
two or three Of its members under their
surveillance, It was said, whom they ex-
pect TO take at the proper time. So
cleverly have the members OF this gang
duped their subjects that the local au-
thorities have been unable TO obtain a
specific complaint against any one Of
them which would lead To their arrest
and exposure. The New Berlin cashier
is said to have been only one Of hun
dreds Of wealthy subjects Of the black
mailing schemes of these men. They
have extorted large amounts from
women as well as men, II was declared,
and always through some knowledge or
pretence Of a family skeleton or com
promising act of the person toward
whom they direct their operations.
Under such circumstances the victim
would inevitably pay rather than run
the risk Of the threatened exposure.
It was thought likely that the New
Berlin cashier might have made the ac-
quaiutance Of members OF this extortion
clan on some of his trips to New York
and compromised himself with them
prior to the time when they learned Of
his deralcations in New Berlin. They
are particularly active in keeping an eye
on all out-of-town bankers who may be
ia the city on business or for pleasure
and this was especially true Of the finan
Cicrs from the smaller cities and towns
Il was said. The blackmailers have coll
leagues in other cities who inform them
if they happen 10 learn of favorable"
subject starting for Manhattan
Stock Said To Be Worthless
There is a business concern in the
financial district through which some Of
these men operate, it was said. They
maintain a suite Of we'll appointed Of
fees and conduct business under syn
diCate name for the sole purpose Of sell
ing the stock Of the syndicate, which IS
valueless, 10 the victim Of their extor-
ton, in order 10 make a show Of giving
him something for the money they have
taken from him. In this way the "oper-
ators" are most likely TO avoid come
back" in police parlance.
One Of the favorite methods said to be
employed by the syndicators IS to i'm
press on the subject Of their threats that
they have all the facilities at hand for
distributing the story Of his family scan
dal or wrongdoing, to all the local
newspapers as well as 70 other newspa-
pers throughout tho country. The name
of well known large news distributing
agency is said TO have been copied as
closely as possible for the business needs
OF these men.