PITTSBURG ROBBERY.

New Zealand Herald, Volume LXIII, Issue 19469, 27 October 1926, Page 13

PITTSBURG ROBBERY.

LARGE SUM RECOVERED. OVER £20,000 STILL MISSING. Australian and N.Z. Cable Association. (Reed. 9.5 p.m.) NEW YORK, Oct. 25. An interesting sequel has followed upon the swindle which occurred at Pittsburg recently, when an apparently wel'i-recom-mended salesmau succeeded in taking £85,000 in cash from a group of bank officials. The police traced the money to an associate of the salesman, and recovered £57,900, which was buried near the former's home. Notes of large denomination were placed in milk bottles. The salesman, who was recently apprehended, said he had been robbed while he was on his way to obtain the bonds for the purchase of which the money was handed to him. Ilis associate says he was entrusted with the money, but when he discovered that it had been obtained by fraudulent means he decided to bury it in order to avoid trouble. More than £20,000 is still missing. The message from New York on October 17 said the fraud was disclosed when the examiners of the Pennsylvania State Bank ordered the Brotherhood Savings and Trust Bank, one of the most important American Labour banks, to be closed and brought indictments for conspiracy and other charges against three officers of that institution. An individual who offered business securities for sale was said to have approached the three officials concerned and to have told them he could obtain £160,000 worth of Liberty bonds—a gilt-edged Government security which is now selling above par—for £85.000. He told a plausible story, but kept tbe details secret. The three officials proceeded to obtain £20,400 from the funds of the bank by means of a note which was discounted by the institution. Thev augmented this sum with further money obtained from other parties who were induced to participate in the deal. Ail concerned entered a taxi-cab. The salesman left the cab with a satchel containing the money ostensibly to enter an office where he had said he would secure the bonds. He never reappeared.