(WSBT) A recent undercover investigation by WSBT and the South Bend Tribune showed some local scrap yards failing to follow the city's new scrapping ordinance. But some scrap yards say the hidden cameras don't show the whole story, because a new tool is helping them catch thieves red handed.

That investigation prompted South Bend police to step up their spot checks of the scrap yards. Some have reported as many as two surprise inspections within a week. But some of the yards say they have a new system in place that's already doing a better job.

They call it the scrap metal theft alert system, and three weeks ago, Ed Murphy saw it in action.

"We noticed some scrap was missing out of our containers in the back," explained Murphy, Vice President and General Manager of South Bend's General Machine and Saw Company.

Turns out, it wasn't just some.

Workers reported 3,000 pounds of metal missing from outside the company's machine shop. Murphy says that amount is worth hundreds of dollars at a scrap yard.

He immediately called the police. Then he made another call to Sturgis South Bend Scrap.

"[They] circulated it among a group of scrap dealers, and I eventually got a call saying that my material had been recovered from the people at U.S. Scrap," he said.

U.S. Scrap owner Mike Morris says that type of report is becoming more common.

"We just got a theft alert that came in at 2:41 this afternoon," Morris said Thursday.

He says it's helping scrap yards across South Bend, northern Indiana and southwest Michigan nab more criminals.

"It's working," said Morris. "Proven results. It's much better than anything else that's being used."

Our undercover investigation showed two of South Bend's four scrap yards, Indiana Auto Parts and U.S. Steel, didn't follow all five of the requirements of the city's new ordinance.

A third, Gertrude Street Metal Recycling, bought a box of cemetery vases. That's not prohibited under the city's ordinance, but a series of high profile thefts from local cemeteries has been widely publicized in recent months.

The fourth scrap yard, Sturgis South Bend Scrap, followed all the requirements and refused to buy cemetery vases.

The ordinance's requirements are:

1. Ask where the scrap metal was obtained
   
2. Include video surveillance of the seller
   
3. Copy the seller's ID
   
4. Copy the seller's thumb prints
   
5. Copy the seller's license plate number
   

In the wake of the investigation, Morris says U.S. Scrap is following all five aspects of the ordinance.

But he says it's not helping.

"The city ordinance only controls the scrap yards within the city," he said. "And there are lots of other scrap yards within the area."

Morris also worries that it's hurting his business.

"It's hindering the people that want to recycle. Because they don't want to give out that information. It is an invasion of privacy. Is it really necessary for them to give out that information? Does it do [the prosecutor's office] any good?"

Morris says no. But police say yes.

"The ordinance has done a great deal of good," said South Bend Police Captain Phil Trent. "On the other hand, if one of the scrap yards has stumbled on a technology that's going to make things better, then certainly we'll be more than happy to come on board."

For Murphy, whose business has had thefts like this before, that's very good news.

"In my experience, I think [the theft alert system] worked very well," he said.

And Morris hopes the news will only be getting better.

"Theft alert works," he said. "It works."

Morris says U.S. Steel just passed a spot check by police three days ago. And Murphy says his case is now in the hands of the county prosecutor's office.

After our investigation, some South Bend Common Councilmen vowed to re-examine the city's ordinance. That hasn't happened yet, but councilman Derek Dieter, who is also a South Bend Police officer and helped draw up the ordinance, promises it will. He hopes to address the issue by the end of the year.