Omaha daily bee., 1899-11-07
SWINDLERS ROB UNCLE sam
Lucrative Business in Washing Used
Revenue Stioken,
FRAUDS RUN UP INTO THE THOUSANDS
Officers Estimntc Government tS de-
frauded of Five Thousand Dollars
Per Dny in the wall street
Section Alone.
'AUDs RUN UP INTO THE THOUSANDS

NEW YORK Nov. 6.-Frank G.. Thomp-
SON. chief Of the Internal Revenue bureau
In this city, declared that at least ~ per
cent OF the revenue stamps used daily IN
the Wall street district, having already Deeh
cancelled, were fraudulent
Chief Thompson said this when asKel
about the arrest by him in Newark on sat
urday OF Caleb L. Crockett and c. j. Lee on
a charge OF restoring cancelled stamps anu
selling them for use 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 secondhand
stamps in the section OF the city south OF
Fulton street He says that revenue stamps
worth about s5O,OOO are daily required In the
transactions of that district and that 10 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 a 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 between the
arrests in Newark on Saturday night and
this city.
"Mr. Crockett" Chief Thompson said,
"was manager OF large establishment In
Newark and his position was important and
lucrative. He has been engaged in washing
stamps for long time. have been watch
ing him for two or three months. This is
the first case of this kind we have run down
in New Jersey.
Caught Swindiers Mt work.
"I learned that Crockett had engaged
room in the Palace hotel, Newark, and with
several OF my men / engaged the adjoining
room. Lee was there and Crockett came
in about 8 o'clock. We let them go ahead
for little while and then we entered
caught them at work with lot of stamps
and bottle of the acid used for this pur-
pose was found on the table"
Chei Thompson said the stamps taken
averaged higher denomination than any
he had previously seized.
Messenger boys, Mr.. Thompson said, are
engaged to a large extent by the stamp
swindlers in carrying on their work. He
told OF finding ten $50 stamps m meseen-
ger boy he recently called to his office.
81 will venture to assert" the chief said,
that l can go throuF'' New or Broad street
and take into custody he first fifty anesaen-
ger boys lndlScrlmlnate!., ana Dy 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
IL the boys received good stamps they often
substitute washed stamps and sell the good
ones at discount.
whenever any one offers stamps for sale
at greater discount than l per cent for
800 worth, the persou offering them and
tho stamps themselves should be looked
upon with suspicion. The greatest discount
any one can get is per cent on 500 worth,
which is the most the government allows"
Chief Thompson said although the de-
nominations of revenue stamps vary from
II cent to $1,000, he has never discovered
any greater than $50 being discounted. He
said that stamps of the denominations of ST.,
SO, S. and $40 were most offered and that
the 81 stamps were used with greater fire.
quency by swindlers.
For this crime the penalty provided in
the federal statutes is five years in prison and
a fine of 81. Chief Thompson, as an indica-
tion of the extent to which the swindle was
being carried on, said he had s25 900 in can
celled stamps in his safe.