Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1899-11-07
STAMP SW INDLERS.
thousands Of Dollars Worth OF
Washed Stamps Used in New
York-Arrests Made.

g. Thompson, chief of the internal
revenue bureau in this city, declared
that at least ten per cent of the reve-
nue. stamps used daily in the Wall
street district having already been can
celled were fraudulent.
Chief Thompson said this when ask
ed about the arrest by him in Newark,
on Saturday of Caleb l.. Crockett and
G. J. Lee, on a charge of restoring
cancelled revenue stamps and selling
them for use a second time Mr..
Thompson's jurisdiction extends to
Northern New Jersey and he said that
for two months he had been watching
Crockett.
1t Is estimated by Chief Thompson
that the government is defrauded of
at least $4,000 day by the use of Sec
ond hand stamps in the section of the
city south of Fulton street. He says
that revenue stamps worth about $780,
000 were daily required in the transac-
tons of that district, and that ten
per cent of this total is represented in
restored stamps.
Chief Thompson, who made the first
arrest for this crime six months ago,
said the work of restoring. cancelled
revenue stamps was being carried on
to large extent and that he was
striving to arrest the swindlers as fast
as his varied duties would permit.
He said there was no connection be-
tween the arrests in Newark on Sat
urday night and that in early October
of Freeman Strait in this city.
Crockett, Chief Thompson said,
was manager of large establishment
in Newark and his position was i'm
pontant and lucrative. He has been
engaged in washing stamps for a long
time I have been watching him for
two or three months. This is the first
case of this kind we have run down
in New Jersey.
81 learned that Crockett had engaged
a room in the Palace Hotel Newark,
and with several of my men engaged
the adjoining room. Lee was there,
and Crockett came in about o'clock.
We let them go ahead for little while
and then we entered. | caught them
at work with a lot Of stamps and
bottle of acid used for this purpose was
found On the table,"
Chief Thompson said stamps taken
averaged a higher denomination than
any he had previously seized.
Messenger boys, Mr.. Thompson said,
ere engaged to large extent by the
stamp swindlers in carrying on their
work. He told Of finding ten $50 bills
on messenger boy he recently called
to his Office.
81 will venture to assert the chief
said, "that l can go through New or
Broad street and take into custody the
first fifty messenger boys indiscrfmfn-
ately, and by searching these fifty boys
find at least twenty-five with washed
or restored revenue 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 ores at a discount.
Whenever any one offers stamps for
sale at 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 upon 500, which is the
most the government allows"
Chief Thompson said that although
the denomination Of revenue stamps
varied from 1sc to $1,000 he has never
discovered any greater than $50 being
discounted. He said that stamps of the
denomination of 81, SO, SIS and $40 were
most offered, and that the 81 stamps
were used with greater frequency by
swindlers.
For this crime the penalty is five
years in prison and a fine of 81 900.
Chief Thompson, as an indication of
the extent to which the swindle was