Secrets of the Secret Service
Broadway Boys Swing Across
Country in Whirlwind
Fashion—Girl Proves
Their Undoing
By JOHN JAY DALY
GPANGWILL ENGELSHER and Larry
Leibson, two Broadway boys, were
star members of the famous “Cowboy”
Tessler gang that operated in New York
City.
With forty robberies and several mur
ders on their record, most of the Tessler
gang ran afoul of the police. Landed
in Sing Sing. The gang went out of
circulation.
Engelsher and Leibson evaded arrest.
They decided to desert the big town,
go west and show up on the Pacific
Coast, by the Golden Gate.
Engelsher traveled under the alias
George Benson. Larry Leibson had two
aliases—Laurion S. Cavelli and Larry
Benson. The youths decided to quit
ordinary crimes to become counter
feiters.
Where they secured their spurious
money—almost perfect reproduction of
Federal Reserve Bank S2O notes--the
Secret Service may never know; but the
two Broadwayites bent on beating their
way west let loose a flood of spurious
currency that fooled inhabitants of a
dozen States and the District of
Columbia.
They traveled in a high-powered
roadster down the Atlantic seaboard
to Miami, westward across Louisiana
and Texas to San Francisco.
En route they visited Atlantic City,
stopped off in Philadelphia to view the
Liberty Bell, saw the sights in Washing
ton, D. C., headquarters of the Secret
Service. After a trip to the Bureau of
Engraving and Printing, where Uncle
Sam makes real money, the boys
hastened to the races at Miami. “Book
ies" bet “good money” against their
counterfeit currency. Night clubs, hotels,
restaurants, garages and gas stations
accepted the phony twenties. Banks let
them pass.
A young society girl in Miami was
attracted by the easy manner of Engel
sher. He had verve. She believed her
Prince Charming had stepped out of
the story book. Later, he forsook her
for a girl of the Golden West.
Because Leibson possessed a talent for
shaping rhymes, chimes and jingles he
set himself up as a lyricist and scenario
writer when he and his traveling com
panion got to Hollywood. Actually,
Larry had the screen moguls buying
his wares. When he entertained, in
return for hospitality, some of the no
tables found themselves possessors of
unaccountable S2O bills. They began
to wonder whence came the counterfeit
money.
Quietly, the Secret Service was noti
fied. Leibson and Engelsher departed
for precincts unknown. Nevertheless,
when the lyricist got tangled up with
the Secret Service the most loyal friends
he had were in Hollywood. Some of
the biggest men there wrote letters
pleading for mercy. Names signed to
those notes are known all over America.
They neglected, however, to send the
boy money—even some of his own.
In Los Angeles. Engelsher met up with
a singer in a Hollywood night club.
With her, he and Leibson started in a
roadster toward San Francisco.
Hollywood had been milked for all It
was worth. The two bad men from
Broadway determined to get action in
the region once graced by the old
“Forty-niners.” In San Francisco the
Easterners registered at different hotels.
THE ENGELSHER CASE
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Suddenly before the Judge appeared the young Miami society
girl whom Engelsher had abandoned. Her story convicted him
Engelsher, in the role of a bride
groom, stopped at the swanky St Fran
cis, presided over by a former Balti
morean, James H McCabe. Rated as
one of the best hotelmen in the busi
ness, the astute “Jimmy” McCabe
turned over the bridal suite to what
seemed like a big butter and egg man
from the Atlantic Coast. The bride
groom registered from Durham, N C.
Leibson, as a bachelor, was content
with more modest quarters. He went
to the ultra-respectable William Taylor.
Comfortably situated, the boyr were
ready to “turn on the works”; have a
good time on spurious money.
“Tex” Strange, Secret Service agent
who broke the case, described the par
ticular bill passed by these two men as
“a honey.” Only Government experts
could tell it from the real article. Con
sequently. merchants on Market Street
let go thousands of dollars in expensive
merchandise, turned over to the coun
terfeiters—until one day a clerk in a
leather goods store grew suspicious of
Engelsher.
Because this clerk afterward became
the victim of old-fashioned New York
gangster methods, his car riddled with
bullets, Secret Service men are loath to
disclose his identity. They refer to him
as Jack Wilson. On Upper Market
Street Wilson first encountered “Zangy,”
as the boys call Engelsher.
“Zangy” purchased a lady’s handbag.
As Wilson recalled the transaction, the
man was hard to sell. He wanted the
best in the house. He got it. Paid
for the purchase with spurious currency.
Promised to bring his wife next day and
buy a trunk.
Wilson, the clerk, put the bill in a
special compartment of the cash regis
ter. While his customer examined other
articles in the store the clerk studied
the phony money. He decided it was
counterfeit “Zangy” left the store.
Wilson followed.
On the way. "Zangy” met up with
Larry Leibson, who had been “working
the other side of she street.” The two
New Yorkers went into a women’s
hosiery and glove store and purchased
enough gifts to outfit a Zeigfeld chorus.
Traffic Sergeant Rausch supervised
activities at the corner of Fifth and
Market Streets as Wilson ran up and
said: “Sarge, I believe I’ve discovered a
pair of counterfeiters."
“You do?” the sergeant said. “If
that’s so, w’e’ll have to call the Secret
Service. Where are your counter
feiters?"
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Engelsher and Leibson were nearing a
cigar store.
“There they are,” Wilson said The
sergeant went over to investigate.
“Zangy,” the ever ready, when the officer
stepped up to him, said:
“Just a moment while I make a phone
call. Sergeant.”
"Zangy” had a newspaper under hia
arm. He entered the phone booth.
When he came out the paper was gone.
Leibson disposed of a bundle by throw
ing it into a trash barrel.
The suspects were taken to the In
spector’s Bureau for investigation—
merely as a precaution. Even some of
the wary officials thoi ght their money
was good. One of them said: “I wish
it was mine.” Until “’"ex” Strange, of
the Secret Service, ci me along. An
expert eye then appraned fourteen S2O
Federal Reserve notes for what they
were worth—nothing. It was the old
sixth sense of the Seer it Service.
Back at the cigar stand, Secret
Service men retrieved a bundle of bills
hidden in a newspaper, discarded in the
telephone booth. Oth'r notes were
found in the trrsh barrel.
With purchase receipts from Market
Street stores, Secret Service men un
covered a long list of co mterfeit activi
ties. On the men arresied were several
hundred good dollars rei eived in change
—and the keys to their votel rooms.
At the St. Francis Hotel, “Zangy” had
a private safe-deposit box Manager
McCabe opened this for the Secret
Service. A veritable fortune in Jewels —
mostly pearls—came to view. All the
valuables had been purchased with
counterfeit money, a later check-up
proved. In the deposit box there were
140 of the S2O Federal Reserve notes —
S2BOO in counterfeit money.
Now the trail led backward. In
“Zangy’s” room was a telegram from a
Joe Gould, telling the traveler to “keep
the car as long as needed.” That di
vulged the ownership of the roadster.
Secret Service agents in New York,
Dallas, Miami, E] Paso and other places
went on the job. Across from Nogales,
Ariz., in old Mexico, they found a Japa
nese proprietor of a night club who had
been "gypped” plenty by the Broadway
boys. The Jap gave out good Mexican
pesos for phony American money—in
change. Plus a good time.
Engelsher and Leibson denied having
seen each other—until "Zangy” gave
Larry "a ride out of Los Angeles.”
Through a check-up of hotel phone
calls between the men, “Tex” Strange
of the Secret Bervice nailed tha’ lie.
Repair bills and receipts secured in
garages—Atlanta, New Orleans, Dallas
and points South—helped retrace the
route of two men in the roadster. They
scattered a small fortune in counterfeit
money.
Through the New York underworld,
“Zangy” was liberated on a SIO,OOO bond
pending his trial. Leibson, who pleaded
guilty forthwith, got ten years on Mc-
Neils Island. His friends in Hollywood
failed him on the money end.
One lad in prison and one at large,
Wilson, the clerk who really put an
end to their activities, drove at night
over the Skyline Boulevard to Santa
Cruz. At least, he started toward that
point. A car full of hoodlums riddled the
Wilson auto with bullets. Wilson es
caped with his life. That this was done
by gangsters with a New York under
world background came to light the
next day. Traffic Sergeant Rausch’s
wife received a telephone call. The
voice said: "If you want to see your
husband any more tell him to lay off
the Engelsher case. You know what
happened to Wilson!”
Whoever did the shooting thought
Wilson was killed. He slumped in his
seat as if he were hit.
San Francisco and a pending trial got
on the nerves of Engelsher. He wanted
to see Los Angeles again and his Holly
wood haunts—particularly the night
club singer who had left him flat when
storm signals showed. She was one
jump ahead of the Secret Service men.
With these thoughts in his mind,
Engelsher jumped his bond. Again
the Secret Service had to get their
man. They found him in New York
back at his old tricks learned with the
“Cowboy” Tessler gang.
By one of those old-fashioned hoaxes,
Engelsher lured a diamond salesman
into a trap. Diamonds valued at S7OOO
were at stake. Engelsher, in the midst
of the deal, knocked the man over but
not out. The salesman came up with a
gun in his hand. Police were called.
"Zangy” once more was in the toils of
the law
Back to San Francisco, Engelsher
went in handcuffs. There, the last of
the drama was enacted. He was held
on $50,000 bond.
On the stand, confronted with a stack
of counterfeit notes passed at the Miami
racetrack, Engelsher swore he had never
been there.
Before the Judge, under the guidance
of Secret Service men, stood the young
society girl the counterfeiter threw over
in Florida. He broke down and con
fessed.
Engelsher Joined his compatriot, Leib
son He was sentenced to ten years
on McNeils Island. Thus ended the tour
of two New York gangsters to the
Golden Gate.