Bogus Bonds

A month ago, as collateral for a loan, Chicago's North Shore National Bank accepted twelve $1,000 Cities Service sinking-fund bonds. When they were sent to New York for checking, the bank was told that the bonds were counterfeit. The FBI went to work while the New York Stock Exchange warned investors of printing errors in the counterfeits: a narrow white border, a mottled look on their green seal, breaks in the crossing on capital Ts.

Last week, the FBI arrested three men in New York's Grand Central Station, charged them with having $25,000 worth of the counterfeits, and with trying to sell them at one-third of their market price to an FBI agent posing as an investor. Those arrested, the FBI think, were only middlemen; the actual counterfeiters are probably still at large--and so are other counterfeit bonds.

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