The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-04-29
THE COUNTERFEIT STAMPS.
ouMraHiNS NEVER BEFORE At
TEMPTED IN CoUNTERFErTrNG.
side Line Carried by Prosperous
4 Cigar Concern Proves
Their Ruin.

when 4 general roundup has been
made. the raid now IN progress here and
al over the United States for cigars bear
ing counterfeit revenue stamps, will be
found to involve one Of the most extra
ordinary instances in the history OF coun
terfeiting. Up to yesterday Deputy Col
lector Wilson had seized something like
$4,000 cigars, all in boxes embellshed with
the bogus stamps They were found in
small lots here and there and the search is
not yet finished.
This is the only instance in the history
Of the department where an effort has
been made to counterfeit revenue stamps.
The reason why this has not been the
case before Is plain one upon reflection.
for 10 order that bogus engravings may
be realized upon 1t is necessary that some
article must be produced which they can
be placed upon. In other words the maker
or counterteiter OF these stamps mtst be
manufacturer Of some article that re-
quires their use and for which there is
sufficiently large demand to make the VEN
ture worth risking.
In this case, which the department is
now working on, the conditions seem 10
have been fulfilled by the Arm of $ ia
cobs G. Co. of Lancaster county, Pernsyl-
vania. By a somewhat shady record. In
which arson was more than suspected. this
firm managed to acquire a high CONNER
cisl standing as makers OF cheap do
mestlc cigars. 1t operated an immense
factory at Lancaster. Pa, and was con-
nected with w. l.. Kendig OF the same
place under the firm name of Jacobs &
Kendig. The two factories were makers
OF several popular brands and their legiti-
mate sales all over the country we're OK
ceedingly large. They were regarded by
the commercial world as perfe1tly sound
and It was believed that they were max
ing money.
Under such circumstances 1t is peculiar
that the firm should have taken such des-
perate chances as Is involved in coun-
terfeiting revenue stamps. The evidence is
conclusive however that they embarkes
in the enterprise two years ago, and at
that time put In secret engraving plant
In their establishment al Lancaster. They
produced plates for the making of all
the different varieties of stamps used on
cigars and It is thought by the department
that they made upwards of 81 600 worth
IN face denomination.
The plates as a work OF art were not re-
markable. but the counterfeiters had the
advantage Of operating In a field that was
free from suspicion The inspectors never
gave the stamps any special scrutiny As
long as they were duly placed on the boxes
they were supposed. on general principles
TO be all right. and as a matter OF fact
the fraud was not discovered until evil
denoes OF crookedness began TO come ir
from an entirely different source.
Comment was first excited by the ex
tremely low prices at which Jacobs & Ken
digs goods we're being sold 1t wa
thought very singular that they could ar
ford 10 undersell other makers OF tn
same kind OF goods at from 81 to 81
thousand and experts In this line fount
that they were selling much OF their prod
uct at less than actual cost. This was. L
say the least suspicious, and other man
ufacturers could not understand why th
firm was able to produce and sell Its good
at such low prices. Still no one suspected
anything wrong with the starups whicl
they we're using, and only by the meres
accident was attention drawn 10 them
When this occurred however, glance a
the stamps sufhced TO show that they wer
spurious and the secret service men wer
Instantly detailed to look into the anal
and probe 1t to the bottom
Il did not take the detectives long Z
make sure beyond doubt that the Jacob
people were the makers OF the stamp
which they were using on their cigars
But II was important 10 find out II Their
were any other cigar manufacturers VIII
had undertaken to use the bogus paper
The result OF the investigation has not We
been made public. but II is said that Their
are several other firms deeply implicated
1t is certain at any rate thai the depart
ment has in its possession facts 10 tht
effect as was evidenced in the raidin
OF Jacobs & Kendig's establishment som
weess ago A complete plant for making
these stamps was discovered. including
big lot of paper similar TO that used b.
the government. Just how many stamp
were seized is unknown but the quantlt
was large.
The most surprising fnd by the Off
GERS and one which was totally distinc
from the object OF the search. was a set o
plates for 500 silver certificate, whcl
had bus short while before made its ap
pearance In circulation, and so alarme
the treasury department that the with
drawal OF the genuine note was undo
consideration. The theory OF the depart
ment is that the stamp counterfeiters he
came emhodened by the success of thei
original operations and were encourage
10 extend their line into something tha
would yield 2 richer harvest. II is though
that upwards OF $40 600 in the queer" bill
were issued. Jacobs, Kendig and all thoS
connected with the firm we're placed unde
arrest, and cigar dealers throughout III
country were notified to hold such OF thei
stock as they had on hand, The seizure
here and elsewhere were then begun.
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