Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-11-07
USING CANCELLED STAMPS.
comm issioner Wilson Believes That
the Government is Being Cheated.

Commissioner Wilson of the internal reve-
nue. bureau has for some time been seri-
ouSiy considering the matter of requiring
persons who use internal revenue stamps to
perforate them with machines instead of
by the present process of cancellation. The
commissioner, however is in hope that he
may not have to resort to this, as the ma
chimes would cast considerable money and
the people who use few stamps would be
put TO the cost of purchasing the machines
"a a heavy price.
The whole subject of requiring machines
has come about because of the sale and use
of econd-hand stamps in New York and
other cities. The frauds are being practiced
upon the government to a considerable eX-
tent. and the whole detective force Of the
government IS engaged to a more or less
extent in trying to run down the violators
The greatest amount of the fraud is in
New York, where the violators secure
stamps which have been used, wash them,
thereby restoring them to their original ap-
pearance, and then use them again.
One of the agents of the internal revenue
has made several arrests in New York. He
believes that the government is defrauded
of at least 5000 a day by the use of re-
stores Cancelled revenue stamps. This esti-
mate is considered too high by Commissioner
Wilson. He admits that the evil exists
but thinks 1t has been magnitied. If he
thought that the amount named was lost
daily he would issue order requiring the
use of machines. but as he thinks the loss
Is small he believes that preferable to re-
curing the users of small quantities of
stamps to buy costly perforating machines.
Criminals have begun the use of washed
beer stamps, on which the government re-
ceives an immense revenue. The beer deal
ers have suggested perforating machines,
and the matter has been under considera-
ton.
Frank G. Thompson, the chief Of the In
ternal revenue bureau in New York, says
that messenger boys are engaged to a large
extent by the stamp swinders in carrying
on their work. He recently sent for a New
York messenger boy and found ten $50 bills
on his person.
II will venture to assert" Mr.. Thompson
said, that l can go through New or Broad
street and take into custody the first fifty
messenger boys Unfortunately and by
searching these fifty boys find at least
twenty-five with washed or restored reve-
nue. stamps Some houses allow messenger
boys and clerks to affiX and cancel stamps,
and even if the boys receive good stamps
they often substitute washed stamps and
sell the good ones at discount.
whenever any one offers stamps for sale
at a greater discount than one per cent for
500 worth the person offering them and the
stamps themselves should be looked upon
with suspicion. The greatest discount any
one can get is one per cent on 500 worth,
which is the most the government allows"
Chief Thompson said that although the
denominations of revenue stamps varies
from IL cent to $1,000, he has never discov-
cred any greater than $50 being discounted
He said that stamps of the denomina lions
of ST. 49, 81 and $40 were most offered, and
that the 81 stamps were used with greatest
frequency by swindlers.
For THIS crime the penalty provided in the
federal statues IS five years In prison and a
fine of 81 600. Chief Thompson as an ind-
cation of the extent to which this swindle
was being carried on, said he had $4,000
in Cancelled stamps in his safe.