Democratic Sentinel, Volume 20, Number 27, Rensselaer, Jasper County, 10 July 1896 — CARSON CITY MINT THEFTS [ARTICLE]

CARSON CITY MINT THEFTS

SUPT. MASON TELLS THE STORY OF TRACING THEM. Jones Pocketed Bert of Bullion and Sub* stituted Others That Contained Less Cold and More Silver. One morning, about a year and a half ago, J. W. Adams, Superintendent of the Mint of Carson City, received a communication from Hlrseh Harris, the melter and refiner of the Mint, containing the rather startling statement that a clean-up of the refinery had revealed an apparent shortage In gold bullion of, approximately, 3000 standard ounces. Superintendent Adams apprised R. E. Preston, Director of the Mint at Washington, requesting that some competent person be sent to Carson City to investigate. Mr. Preston selected Mr. Andrew Mason, Superintendent of the United States Assay Office in this city. Mr. Mason reached Carson City on March 15. 1895. The result of his investigation was the trial and conviction of one man who had robbed the Mint of nearly SIOO,OOO, and of another who had stolen about $30,000. The investigation revealed some other things which may bring about radical changes in the conduct of all the Mints, and in the appointment of Mint officials. Mr. Mason has just returned from his last trip to Carson City, and at his home In Orange recently, he told a New York Sun reporter an interesting story of how the thieves were caught and finally brought to justice. Upon Mr. Mason's arrival in Carson he took charge of the inciter and refiner’s department. He was informed by the superintendent of the Mint that the bullion involved in the robl>ery was that delivered to the melter and refiner from June 1 to December 31,1894. “I am very much obliged for your information,” said Mr. Mason to Superintendent Adams, “but, if you don’t mind, we’ll have a general clean-up of all the bullion delivered to the melter and refiner between June 1, 1894, and to-day. That clean-up will begin at once.” Mr. Harris, the melter nnd refiner, was only too glad to have the clean-up as thorough as possible. The discovery of the shortage had nearly given him nervous prostration. Further than that, he had assumed the duties of his office only a short time before the shortage was discovered, and that made him doubly anxious. Before his appointment Mr. Harris had been prominent in Democratic politics in Carson City, but knew little about the work in a Mint, or of any of its departments. He was recommended to President Cleveland by the Chairman of the Democratic State Committee of Nevada. For the actual management of the business of his department Mr. Harris relied upon John T. Jones, the assistant melter and refiner, who was a hold-over appointee of ex-President Harrison. Jones was really the acting superintendent of the melting and refining department. The work of cleaning up had gone on for five days. One day Mr. Mason had brought to him a number of the “melts” or bars of bullion, which had been delivered to the refinery in the period specified by the superintendent of the Mint, and which contained, according to the stamps they bore, a large percentage of gold. It was reassayed, and showed only forty-six ounces of gold, instead of 1.143. Mr. Mason was with the assayer dur-, ing all the time that the reassay was being made, and when the assayer finally announced the result his face was as white ns chalk. In one “melt” alone a theft of about $21,000 had been discovered.

“Who, if anyone connected with the Mint, would know about this bogus ‘melt?’ ” asked Mr. Mason of the assayer. The man seemed not to hear the question. He was as dumb as an oyster. “I have not discovered nny defect in your hearing so far, my friend. Please answer my question,” said Mr. Mason. “Well, sir,” replied the assayer, “I suppose Mr. Jones must have known about it.” “Mr. Jones is the assistant superintendent of the refilling department?” “Yes, sir.” “Would it be possible for this melt to have been assayed and stamped, and put into the vault wthout Mr. Jones knowing about it?” The assayer thought for a moment, and then replied very slowly, “No, sir, I don’t think it could be possible. In fact I’m sure it could not.” “All right, my friend,” replied Mr. Mason, “you will say nothing about this discovery and we shall see what we shall see.” Then a number of other melts were reassayed, and the loss of $75,000 in gold was accounted for. Other discoveries led to the belief that someone had stolen from the Mint, between June 1, 1804, and June 15, 1895, nearly SIOO,OOO in gold. After Mr. Mason had the results of the reassays officially submitted to him, he walked into the office of the assistant superintendent of the refining department, and asked for his book of records of the assays and refinings. “Certainly, sir, I’ll get it from the safe and send it to you,” said Jones. “I’ll not trouble you to do that. If you’ll get It now, please, I’ll take it with me,” Mr. Mason responded. Jones turned white, then his face flushed, and then turned pale again. He seemed to have difficulty in moving in his chair. Finally he pulled himself together and went to the safe for the book. During the conversation Mr. Mason had noticed what seemed to him to be a curious circumstance. The door of the vault containing all the “melt's” in the Mint was just at the right of Jones’s desk and not a foot away from it. After rummaging around the safe for some time Jones found the book that was wanted, and gave it to Mr. Mason. When Mr. Mason was able to make a careful examination of the book the first thing that attracted his attention was that nearly a dozen pages had been torn out. Next he discovered in Jones’s own.handwriting the entry of the very “melt” in which, by reassaying, the first evidence of the thefts was discovered. It was entered as having been received into the vault and charged otf. Then, to cover the shortage in gold and the surplus In silver, the same melt was watered as having been sent to the re-

finery again, and again entered as haring been received at the vault. In other words, Jones had made two entiles upon his book of something he did not have. It had been rumored about Carson City that there were some Irregularities at the Mint, and one of the Carson papers made some reference to the fact, making the statement that, while nothing definite could be learned,* it was commonly supposed that some error had occurred in counting the money.” This statement fell under the eye of a man named Beck, proprietor of the Reno Reduction Works. On reading the statement Beck immediately told Superintendent Adams that a man named James H. Heney, who was a silver dissolver at the Mlut from December 1, 1801, to June 30, 1803, had, several months before, sent to the Reno Reduction Works to be melted, and had subsequently sold to the Selby Smelting aud Lend Company of San Francisco $23,000 of fine gold. When this intelligence was received at the Mint the books of the assistant superintendent of the refining department were gone over again, and it was found where Jones, in order to cover up his own stealings, had been obliged to cover up Honey’s as well. The evidence collected by Mr. Mason was submitted to tlie Grand Jury, and both Heney and Jones were indicted. Heney, at the time, was not in Carson City. Jones was a prominent man in the town politically, and his family were prominent socially. Great pressure was brought to bear upon the Grand Jury to take no notice of the case. Jones was arrested as soon ns the Indictment was found, and he gnve bail. Ileney was pursued by Secret Service detectives through California, New Mexico, Arizona, and was finally taken at Leadville. Each man went through two trials before convictions were obtained. Both Jones and Heney were sentenced to imprisonment for eight years, and to pay a fine of SSOOO each. Jones accomplished his stealings by simply appropriating "melts” from the vault, and then accounting for his shortage by stamping upon a melt that was sent to him subsequently figures to make up the amount of gold he had taken. Heney took his gold from the separating room. When the silver had been so far separated from the gold ns to allow the gold “spang” or powder to be free from the silver, he would simply pick up n handful of the powder now and then and put it In his pocket.