The evening times., 1899-11-11
MORE STAMP SWlNDLES
Revenue officials After New York
and Baltimore Gangs.
Losses to the Government Already
Since the War Tax Went Into Ef-
feet Estimated mt Over n Million
DOllars-Many Messengers Involv-
ed-HOw the Scheme Is Operated.

| IL WAS sdiu toudy tndt more revenue
stamp swindles had been unearthed in
New York in the Wall Street district, and
an entirely new gang had been discovered
to be at work in Baltimore. The internal
revenue officials are investigating these
cases. and 1t Is expected that more SEN
sational disclosures will be made in Cay
or two. Up to the present time 1t is said
the Government has lost over a million
dollars in these frauds since the war tax
went into effect.
| That portion of New York city known
| to the Internal Revenue Bureau as the
Wall Street district uses about S1l. .0O0, 600
| worth of revenue stamps annually. 1t is
the most active district in the department,
| and from the vast amount of business
! transacted there is the most susceptible
| TO frauds and requires the greatest amount
| of surveillance by the officers of the de-
| partment.
Recently Frank G. Thompson. Chief of
| the Internal Revenue Bureau in New York.
Eotiiied United States Commissioner Will
son THAT the Government had been swim
| died by the imposition of washed stamps
| in the Wall Street district to the extent
| of at least 10 per cent OF the legitimate
business, or at the rate of more than ST.
| 100000 annually. The officials were dunn
founded at this report, following so closely
| upon the arrest and conviction of a number
of conspirators in Pennsylvania, who lad
successfully circulated SIPS. 900 of counter
| felt revenue stamps, and active measures
were al once adopted having for its OBJ
| ject the apprehension of the swindlers and
| the breaking up of the gang.
The internal revenue officers, under
Chief Thompson, succeeded after a time in
securing evidence enough to warrant the
arrest of Caleb l.. Crockett and C. J. Lee.
Of Newark, n. j.. who. it is believed by
.. the officials. have been connected with the
men who have operated in New York in
the wholesale manner mentioned.
Crockett was manager of large estab-
lishment in Newark, and his position was
important and lucrative. The revenue Of
ficers profess that he had been engaged
in washing Cancelled stamps for a long
time, but the medium through which he
and his confederates distributed them has
not been discovered.
The officials have ascertained, however,
that the swindlers have made use of mes
senger boys in carrying on their work.
and Chief Thompson says he found on one
messenger boy ten $50 bills. The chief
aserts that il he should take into custody
the first fifty messenger boys he should
meet on Broad and New Streets, he would
find at least one-half the number in pos
session or washed stamps.
These boys, according to Chief Thomp-
son, when they receive good revenue
stamps from their employees substitute
for them the washed stamps, and then sell
the good ones at discount.
Commissioner Wilson has asked Chief
Thompson to break up these operations. He
believes that with the cooperation OF
business men the evil may be easily wiped
out.
The Commissioner says that wherever
anyone offers stamps for sale at a greater
discount than l per cent for 800 worth
the person, offering them and the stamps
themselves should be looked upon with
suspicion. The greatest discount anyone
can get from the Government is / per
cent on 500 worth. Stamps of the denomi-
nation OF 81, So. IS. $40 are most used
for washing purposes
The revenue officers believe that the gang
of operators with which Crockett and Lee
are believed to be connected place the most
tion. but they also believe that scores of
clerks. messenger boys, and other en-
pioyes in firms using many stamps are
engaged in washing stamps.
To what extent this fraud extends
throughout the country is at present mat
ter Of conjecture. but Commissioner Wilson
is convinced that the frauds are perpetrat-
ed in nearly all OF the great cities. and
when done by SO many people it is difficult
to break II up.
The process for washing stamps is so
simple that any one can do 1t and the
so strong that the practice
has been steadily increasing during the last
year. Persons convicted of the offence are
subject to five years Imprisonment and
81 900 fine
Chief Wilkie, of the Secret Service, de-
clined today to discuss these frauds, say
ing that they were properly in the control
Of the revenue department and that unless |
was done the Secret Ser |
vice agents were not called upon for as
sistance. He admitted. however. that the |
evil appeared to be very great and that it |
would be impossible to estimate, with any
degree Of accuracy, the loss to the Govern
ment through washed and counterfeit |
stamps.