The evening times., 1899-10-28

For several weeks the United States
Treasury agents and Secret Service men
have been endeavoring to locate gang Of
diamond smugglers which. 1t is said, has
been unusually successful in getting thou
sands Of dollars worth OF precious stones
through the custom houses, despite the
vigilance OF the inspectors. Chief Wilkie
the matter, but it was learned that the
Government believes that it has captured
the leader of the gang.
A number of cut and uncut stones were
offered for sale in the Maiden Lane dia-
mond markets of New York, recently, at
a very low price. One prominent diamond
broken to whom an offer of this kind was
made, became convinced that everything
was not right, and communicated his sus-
picions to the United States Treasury OFF,
cials. William H. Theobold, who Is said
to be one Of the shrewdest agents Of the
Treasury, was Immediately assigned to the
case by Chief Wilkie, and several Secret
Service detectives were detailed to assist
him. For several weeks a constant watch
was kept on all incoming vessels landing
at New York and other ports. and precau-
tionary kilograms were sent to the custom
house officials along the Canadian border.
Nothing of Importance was discovered un-
til last Wednesday when, it is said. enough
evidence had been collected to warrant the
detention of-Adolph Peabody, former
Maiden Lane diamond broker.
Twenty thousand dollars worth of jewels,
it was said at the Treasury Department,
oil int fnr n
safe deposit vault in which it is claimed
there were as many more.
Just what passed between Peabody and
Agent Theobold at the Grand Union Hotel,
New York, where the former was captured.
Chief Wilkie today refused to say, but it
is thought that the detective accused Pea
body point blank of smuggling. He was
then taken before Collector OF the Port
Bidwell, for Identification, and it was there
learned that he had but recently returned
from Europe by the way of Canada.
If the facts in the case are what they
seem to be, this is the largest capture
made in two years. Two years ago United
States Treasury Agent Theobold unearthed
$4,000 worth of smuggled jewels in a New
York diamond dealers store.
Owing TO the war in the Transvaal the
prevailing price of diamonds is higher
than at any time during the past ten years.
They are liable to be much higher and
the temptation to avoid paying the duty
imposed is very great. The Treasury De-
partment officials have the knowledge o.
numerous attempts to evade the law in
this way, and they believe that there is a
large smuggling gang. Although the Gus
tom house inspectors, stationed at the diff
ferents ports of entry and along the Ca
madam border have been unusually vigi-
liant in anticipation of an increase in
smuggling, numerous cases have been dis
covered in which the culprits were not
captured until after they had passed
through the custom house. 1t is feared
that many have escaped.
The attempts at smuggling which have
been made recently have spurred the Gus
tom house inspectors to make a more
minute examination of all personal effects
and baggage brought in by travellers. In
the past few months, Ii is said. the bold
ness of smugglers has been without par
allel in the history of the custom houses.
All sorts of devices for concealing dia-
monds and other contraband goods have
been resorted to and the eyes of the OFF,
GERS, though trained by long experience.
have often been deceived. Contrary to a
prevalent impression that smuggling is
carried on exclusively by persons of ques-
tionable repute, the records of the Treas
ury Department show that such is not the
case but that II is INDUCED in by those
of social standing. Within the past year
a number of cases come to the attention
of the Treasury agents where well-known
women have been apprehended while at
tempting to conceal some article subject
to duty.