True Detective Stories from the Archives of the Pinkertons

The American Exchange Bank Robbery

Late in the afternoon of Friday, May 4, 1888, two messengers left the American Exchange National Bank, at the northeast corner of Cedar Street and Broadway, New York City, and started down the busy thoroughfare for the office of the Adams Express Company, a few blocks distant. They carried between them, each holding one of the handles, a valise made of canvas and leather, in which had just been placed, in the presence of the paying-teller, a package containing forty-one thousand dollars in greenbacks, to be transmitted to the United States Treasury in Washington for redemption.

Although the messengers – Edward S. Crawford and old "Dominie" Earle – were among the bank's most trusted employees, their honesty being considered above suspicion, they were nevertheless followed at a short distance by bank detective McDougal, an old-time police detective, whose snow-white beard and ancient style of dress have long made him a personage of note on Broadway. Detective McDougal followed the messengers, not because he had any fear that they were planning a robbery, but because it is an imperative rule of all great banking institutions that the transfer of large sums of money, even for very short distances, shall be watched over with the most scrupulous care. Each messenger is supposed to act as a check on his fellow, while the detective walking in the rear is a check on both. In such cases all three men are armed, and would use their weapons without hesitation should an attack be made upon them.

The messengers walked on through the hurrying crowd, keeping on the east sidewalk as far as Wall Street, where they turned across, and continued their way on the west sidewalk as far as the Adams Express Company's building, which stands at No. 59 Broadway. Having seen them safely inside the building, the detective turned back to the bank, where his services were required in other matters.

Passing down the large room strewn with boxes and packages ready for shipment, the two messengers turned to the right, and ascended the winding stairs that in those days led to the money department, on the second floor. No one paid much attention to them, as at this busy hour bank messengers were arriving and departing every few minutes. Still, some of the clerks remembered afterward, or thought they did, that the old man, Earle, ascended the stairs more slowly than his more active companion, who went ahead, carrying the valise alone. Both messengers, however, were present at the receiving-window of the money department when the package was taken from the valise and handed to the clerk, who gave a receipt for it in the usual form: "Received from the American Exchange Bank one package marked as containing forty-one thousand dollars, for transfer to Washington"; or, at least, so far as has ever been proved, both messengers were present when the package was handed in.

The two messengers, having performed their duty, went away, Earle hurrying to the ferry to catch a train out into New Jersey, where he lived, and Crawford returning to the bank with the empty valise. The valuable package had meantime been ranged behind the heavily wired grating along with dozens of others, some of them containing much larger sums. The clerks in the money department of the Adams Express Company become so accustomed to handling gold, silver, and bank-notes, fortunes done up in bags, boxes, or bundles, that they think little more of this precious merchandise than they might of so much coal or bricks. A quick glance, a touch of the hand, satisfies them that the seals, the wrappings, the labels, the general appearance, of the packages are correct; and having entered them duly on the way-bills and turned them over to the express messenger who is to forward them to their destination, they think no more about them.

In this instance the forty-one-thousand-dollar package, after a brief delay, was locked in one of the small portable safes, a score of which are always lying about in readiness, and was lowered to the basement, where it was loaded on one of the company's wagons. The wagon was then driven to Jersey City, guarded by the messenger in charge, his assistant, and the driver, all three men being armed, and was safely placed aboard the night express for Washington. It is the company's rule that the messenger who starts with a through safe travels with it to its destination, though he has to make a journey of a thousand miles. Sometimes the destination of money under transfer is so remote that the service of several express companies is required; and in that case the messenger of the Adams Company accompanies the money only to the point where it is delivered to the messenger of the next company, and so on.

The next morning, when the package from the American Exchange Bank was delivered in Washington, the experienced Treasury clerk who received it perceived at once, from the condition of the package, that something was wrong. Employees of the Treasury Department seem to gain a new sense, and to be able to distinguish bank-notes from ordinary paper merely by the "feel," even when done up in bundles. Looking at the label mark of forty-one thousand dollars, the clerk shook his head, and called the United States Treasurer, James W. Hyatt, who also saw something suspicious in the package. Mr. Blanchard, the Washington agent of the Adams Express Company, was summoned, and in his presence the package was opened. It was found to contain nothing more valuable than slips of brown straw paper, the coarse variety used by butchers in wrapping up meat, neatly cut to the size of bank-notes. The forty-one thousand dollars were missing.

It was evident that at some point between the bank and the Treasury a bogus package had been substituted for the genuine one. The question was, Where and by whom had the substitution been made?

The robbery was discovered at the Treasury in Washington on Saturday morning. The news was telegraphed to New York immediately, and on Saturday afternoon anxious councils were held by the officials of the American Exchange Bank and the Adams Express Company. Inspector Byrnes was notified; the Pinkerton Agency was notified; and urgent despatches were sent to Mr. John Hoey, president of the express company, and to Robert Pinkerton, who were both out of town, that their presence was required immediately in New York. Meanwhile every one who had had any connection with the stolen package – the paying-teller of the bank, other bank clerks, the messengers, detective McDougal, the receiving-clerks of the Adams Express Company, and the express messenger – was closely examined. Where and how the forty-one thousand dollars had been stolen was important to learn not only in itself, but also to fix responsibility for the sum lost as between the bank and the express company.

Three theories were at once suggested: the bogus package might have been substituted for the genuine one either at the bank, between the bank and the express office, or between the express office and the Treasury. The first assumption threw suspicion on some of the bank employees, the second upon the two bank messengers, the third upon some one in the service of the express company. Both the bank and the express company stoutly maintained the integrity of its own employees.

An examination of the bogus package disclosed some points of significance. Ordinarily, when bank-notes are done up for shipment by an experienced clerk, the bills are pressed together as tightly as possible in small bundles, which are secured with elastic bands, and then wrapped snugly in strong paper, until the whole makes a package almost as hard as a board. Around this package the clerk knots strong twine, melts a drop of sealing-wax over each knot, and stamps it with the bank's seal. The finished package thus presents a neat and trim appearance. But in the present instance the package received at the Treasury was loosely and slovenly wrapped, and the seals seemed to have been put on either in great haste or by an inexperienced hand. Moreover, the label must have been cut from the stolen package and pasted on the other, for the brown paper of a previous wrapping showed plainly in a margin running around the label. The address on the package read:

"$41,000.

"United States Treasurer,

"Washington,

"D. C."

All this was printed, except the figures "41,000," even the dollar-sign. The figures were in the writing of Mr. Watson, the paying-teller of the bank, whose business it was to oversee the sending of the money. His initials were also marked on the label, with the date of the sending; so that on examining the label Mr. Watson himself was positive that it was genuine.

All this made it tolerably clear that the robbery had not been committed at the bank before the package was intrusted to the two messengers; for no bank clerk would have made up so clumsy a package, and the paying-teller himself, had he been a party to the crime, would not have cut the label written by himself from the genuine package and pasted it on the bogus one; he would simply have written out another label, thus lessening the chances of detection. Furthermore, it was shown by testimony that during the short time between the sealing up of the package in the paying-teller's department and its delivery to Dominie Earle, who took it first, it was constantly under the observation of half a dozen bank employees; so that the work of cutting off the label and pasting it on the bogus package could scarcely have been accomplished then without detection.

Earle and Crawford, the bank messengers, were submitted to repeated examinations; but their statements threw no light upon the mystery. Both stuck persistently to the same story, which was that neither had loosed his hold on the handle of the valise from the moment they left the bank until they had delivered the package through the window of the express company's money department. Accepting these statements as true, it was impossible that the package had been tampered with in this part of its journey; while the assumption that they were not true implied apparently a collusion between the two messengers, which was highly improbable, since Dominie Earle had been a servant of the bank for thirty-five years, and had never in that long term failed in his duty or done anything to arouse distrust. Before entering the bank's employ he had been a preacher, and his whole life seemed to have been one of simplicity and honest dealing.

As for Crawford, who was, indeed, a new man, it was plain that if the Dominie told the truth, and had really kept his hold on the valise-handle all the way to the express company's window, his companion, honest or dishonest, would have had no opportunity to cut off the label, paste it on the bogus package, and make the substitution.

Finally came the theory that the money package had been stolen while in the care of the express company. In considering this possibility it became necessary to know exactly what had happened to the package from the moment it was taken through the window of the money department up to the time of its delivery at the Treasury. The package was first receipted for by the head of the money department, Mr. J. C. Young. Having handed the receipt to the bank messengers, he passed the package to his assistant, Mr. Littlefield, who in turn passed it on to another clerk, Mr. Moody, who way-billed it in due form for Washington, and then placed it in the iron safe which was to carry it on its journey. Two or three hours may have elapsed between the receipt of the package and the shipment of the safe, but during this time the package was constantly in view of five or six clerks in the money department, and, unless they were all in collusion, it could scarcely have been stolen by any one there. As for the express messenger who accompanied the safe on the wagon to the train, and then on the train to Washington, and then on another wagon to the Treasury building, his innocence seemed clearly established, since the safe had been locked and sealed, according to custom, before its delivery to him, and showed no signs of having been tampered with when opened in Washington the following morning by another representative of the express company. The messenger who accompanies a through safe to its destination, indeed, has small chance of getting inside, not only because of the protecting seal, but also because he is never allowed to have the key to the safe or to know its combination. Recently, as a still further safeguard, the Adams Express Company has introduced into its cars an equipment of large burglar-proof and fire-proof safes, especially as a guard against train robbers, who found it comparatively easy to break open the small safes once in use. In the present instance, of course, there was no question of train robbers.

One important fact stood out plain and uncontrovertible: that a responsible clerk in the money department of the Adams Express Company had receipted for a package supposed to contain forty-one thousand dollars intrusted to the company by the bank. This threw the responsibility on the company, at least until it could be shown that the package as delivered contained brown paper, and not bank-notes. In accordance with their usual policy of promptness and liberality, the Adams people paid over to the American Exchange Bank the sum of forty-one thousand dollars, and said no more about it. But their silence did not mean inactivity. Their instructions to their detectives in this case, as in all similar cases, were to spare neither time nor expense, but to continue the investigation until the thieves had been detected and brought to punishment, or until the last possibility of clearing up the mystery had certainly expired.

Hastening to New York in response to the telegram sent him, Robert Pinkerton examined the evidence already collected by his representative, and then himself questioned all persons in any way concerned in the handling of the money. Mr. Pinkerton, after his investigation, was not so sure as some persons were that the package had been stolen by employees of the express company. He inclined rather to the opinion that, in the rush of business in the express office, the false package, badly made up though it was, might have been passed by one of the clerks. This conclusion turned his suspicions first toward the two bank messengers. Of these he was not long in deciding Dominie Earle to be, in all probability, innocent. While he had known of instances where old men, after years of unimpeachable life, had suddenly turned to crime, he knew such cases to be infrequent, and he decided that Earle's was not one of them. Of the innocence of the other messenger, Crawford, he was not so sure. He began a careful study of his record.

Edward Sturgis Crawford at this time was about twenty-seven years old, a man of medium height, a decided blond, with large blue eyes, and of a rather effeminate type. He went scrupulously dressed, had white hands with carefully manicured nails, parted his hair in the middle, and altogether was somewhat of a dandy. He had entered the bank on the recommendation of a wealthy New-Yorker, a young man about town, who, strange to say, had made Crawford's acquaintance, and indeed struck up quite a friendship with him, while the latter was serving in the humble capacity of conductor on a Broadway car. This was about a year before the time of the robbery. Thus far Crawford had attended to his work satisfactorily, doing nothing to arouse suspicion, unless it was indulging a tendency to extravagance in dress. His salary was but forty-two dollars a month, and yet he permitted himself such luxuries as silk underclothes, fine patent-leather shoes, and other apparel to correspond. Pushing back further into Crawford's record, Mr. Pinkerton learned that he had grown up in the town of Hancock, New York, where he had been accused of stealing sixty dollars from his employer and afterward of perpetrating a fraud upon an insurance company. Putting all these facts together, Mr. Pinkerton decided that, in spite of a perfectly self-possessed manner and the good opinion of his employers, Crawford would stand further watching. His general conduct subsequent to the robbery was, however, such as to convince every one, except the dogged detective, that he was innocent of this crime. In vain did "shadows" follow him night and day, week after week; they discovered nothing. He retained his place in the bank, doing the humble duties of messenger with the same regularity as before, and living apparently in perfect content with the small salary he was drawing. His expenses were lightened, it is true, by an arrangement voluntarily offered by his friend, the young man about town, who invited him to live in his own home on Thirty-eighth Street, whereby not only was he saved the ordinary outlay for lodgings, but many comforts and luxuries were afforded him that would otherwise have been beyond his reach.

Thus three months went by with no result; then four, five, six months; and, finally, all but a year. Then, suddenly, in April, 1889, Crawford took his departure for Central America, giving out to his friends that he was going there to assume the management of a banana plantation of sixty thousand acres, owned by his wealthy friend and benefactor.