Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1916-09-19
BLACKMAIL BAND
NABBED AT CHICAGO
Five Men and Three Women
Who Get $1,000, 900 from
Rich Persons Arrested.
RACE GAMBLING SIDE LINE

Chicago, Sept. lS,--Confession has
been made by two members of the al
legged syndicate OF blackmailers, eight
of whom are under arrest here, that
operations of the swindlers have net
ted more than 100000 within the
last year, federal officials announced
today.
The confessions, it was declared,
disclosed that the alleged band num-
bers at least sixty--a third OF whom
are said to be women-young, pretty
and crafty. A dispute over the di-
vision Of spoils, it was said, led to the
confessions. Arrest Of a score, or
more members of the syndicate are
expected within week,
The men who confessed are "Dick"
Barrett and Edward J. Thompson, ac-
cording to Hinton 6. Clabaugh, head
Of the Chicago bureau OF the federal
Department OF Justice. Both are at
liberty, he said. They will become
witnesses for the government, how
ever, when the eight members OF the
alleged syndicate arrested in a raid
on fashionable apartment hotel Sat-
urday night are brought to trial.
Fear that they would receive long
prison sentences caused Thompson
and Barrett to confess, Clabaugh
said. He declined, however. to say
when they gave him the information
that led to the raid.
List of Persons Arrested.
Bail aggregating 100000 has been
fixed for the eight members OF the
alleged band now under arrest. They
are to be given hearing tomorrow.
Those under arrest and the bail they
will be required to give are:
Edward Donahue. alias Doc" Donahue,
$4,000.
Mrs. Helen Evers. alias Mrs. George W.
Brown, $4,000.
Mrs. Edward Donahue. $4,000.
james Christian. alias James Roberts.
$1,000.
George Bland. alias Joseph Pearl. 5000.
H.
Chapman. 5000.
The operations OF the band are de-
ciared to have extended from coast
to coast. Men and women alike have
been victims. Persons Of wealth were
the objects in every case. Five veal
thy and socially prominent members
OF Chicago society are declared to
have been blackmailed out OF $4,000
Theif names are withheld.
Race Gambling Also Used.
Operations Of the syndicate, which
now appears to have been Of interna,
tional proportions, were not confined
to the blackmail Of wealthy men and
women, according to information de-
veloped today. Among the effects In
the office OF DOC" Edward Donahue
one OF the men caught in the Saturday
night raid, was stationery OF the
united Turf exchange" with head
quarters in New York and Offices al
over the world" There were also
cipher codes for deciphering messages
received by wire, telling what horses
to bet on. how much to bet, wha
races and positions to play. !.
Fake newspaper clippings detailed
the wonderful cleanups made by I
young eastern plunger in pool rooms
apparently had been used to lure vic
tins. One letter found in Donahuc''
room at the fashionable south side
apartment house was from tn,
"Horseman's association" Of l46l
Market street, Louisville, KY, signet
by ]. c. Saulsbcrry, secretary, and ad
dressed to A. r. Karger. The secre
tary said he wa: sorry to hear Of mr.
Karger's notoriety lately and hopet
he wouldn't have another occurrenc,
like that again"
II seemed that "Mr. Karger's" pic
ture had appeared in a newspaper il
connection with bookmaking activitic
at the races.
Turf Exchange 10 Exclusive.
According to Department OF justice
officials here today, the UNITED Tur
exchange" must have been an exclu
sive affair. The rules stated tina
members using the club rooms in tn
evenings must appear In full dress.
Evidently the "Horseman's associa
ton" was known in Louisville as ;
grain brokerage house. Code book
showed how wagers on horse race
could be placed, and there was ap
parentiy no limit. II the bettor want
ed TO place $4,000 on horse h,
would order fifty boxes Of red, whit,
add blue matches, the color depend
ing on the position to bet on th'
horse--viz, red, straight; blue, place
white, show. Condition OF track wa
described as follows. Dry, oats; mud
dy, corn; medium, rye. II all thes,
elaborate systems were not enough
to beguile the victim the fake news
paper clipping was flashed. Tn
headlines OF this article state that
young eastern plunger cleaned nj
$4,000 from Seattle, Wash, poo
rooms. Identity of man not know,
to local gambling fraternity" Tn
story then went on that all efforts t
get information from him had beel
fruitless. He had never lost bet
Here it was, according to the De
partment Of Justice officials here to
day, that Donahue broke into til
game. He would claim to be the mys
FERROUS stranger from the east
Mann Act BlackAAail.
According to the federal official
today, here are some OF the thing
done by the syndicate:
THE fleeeed multimillionaire c
New York out OF $4,000 by threaten
ing him with arrest for alleged viola
tons OF the Mann act, two OF tn
members of the syndicate impersonat
ing secret service agents for that pul
pose.
They frightened a wealthy Phils
delphia woman who had been to
friendly with stranger in cafe int