Lupo and Morello finally succeeded in getting the control of the association entirely in their own hands. They used the funds to develop their business ventures, Morello specializing in barber and shoe shops, Lupo sticking to his olive oil importing enterprise. Some of the contractors who put up the tenements were paid, and some were not. Those who had furnished materials for the buildings received some manner of payment, but there were several who got nothing. Law suits began to threaten the two leaders. The holders of the stock began to inquire rather insistently about dividends. At this juncture, Lupo and Morello stuck their heads together and hatched a deep-dyed scheme for making counterfeit money. They would establish a large counterfeiting plant. They would take the counterfeit stuff and give it to the stockholders in the association. For every thirty-five cents which the association owed to a holder of stock Morello and Lupo would give one full dollar in counterfeit money. The person receiving the counterfeit money would be obliged to dispose of it according to the directions given by Lupo and Morello, who held themselves competent to instruct the members of the association so that the bad money could be disposed of without risk of arrest. This counterfeiting scheme was hatched in the summer of 1908 in the rear of Morello's evil-smelling, dingy little spaghetti joint. CHAPTER IV COUNTERFEIT BILLS APPEAR In May, 1909, counterfeit two-dollar and five-dollar bills began to appear in many of the large cities, such as New York, Philadelphia, Pittsburgh, Buffalo, Chicago and Boston. Some of the bills were distributed as far away as New Orleans. The simultaneous appearance of the bills in so many different cities indicated quite plainly that a large band was operating in the distribution of the bad money. Ever since Lupo and Morello and his associates were arrested in 1908, and were turned out by the Police Magistrate because there was not sufficient evidence to hold them for the barrel murder, I had not lost sight of them. They were being trailed all the time, day and night. As a result of my watchfulness, I learned many things that have since proven to be very useful to the government in its efforts to keep the counterfeiting of money down to a minimum.