The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-11-06
WASHED STAMPS
The Government is Defrauded
by Their Use
To the Extent of $4,000 a
Day in Wall Street.
IN THE ACT.
Chief Of Revenue Bureau SWOOps
Down on a Party
Engaged in Fixing Cancelled
Stamps For Use Again.

New York Nov. Crank G. Thomp-
son, chief of the internal revenue bu-
reau in this city declared that at least
10 per cent of the revenue stamps used
daily in the Wall street district having
already been cancelled We're fraudulent.
Chief Thompson said this when asked
about the arrest by him in Newark, on
Saturday of Caleb L. Crockett and c.
J. Lee on a charge of restoring cancell-
ed 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 a day by the use of second
hand stamps in the section of the city
revenue stamps worth about $5O,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 SteampS was being carried on
to a large extent and that he was StriV-
ing to arrest the swindlers as fast Is
his varied duties would permit. He said
there was no connection between the
arrests in Newark on Saturday and
that early in October of Freeman Strait
in this city.
Crockett" Chief Thompson said,
was manager of large establishment
in Newark and his position was i'm
portant and lucrative. He has been
engaged in washing stamps for long
time. have been watching him for two
or three months. This is the first case
Of this kind we have run down in New
Jersey.
4 learned that Crockett had engaged
a room in the Palace hotel, New York
and with several of my men 1 engaged
he in NFeal-e RI
Crockett came in about o'clock We
let them go ahead for little while and
then we entered. caught them at work
with lot of stamps, and a bottle of the
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,
are engaged to a 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.
I will venture to assert the chief
said, that 1 can go through New or
Broad street and take into custody the
first fifty messenger boys indiscrimin-
ately and by searching these fifty boys
find at least $25 in washed, or restored
revenue stamps. Some houses allow
messenger boys and clerks to aff1x and
cancel stamps, and even if the boys re-
ceiVe good stamps they often subati-
tute washed stamps and sell the good
ones at a discount.
when ever any one offers stamps
for sale at a greater discount than l
per cent for 300 worth, the person
offering them and the stamps them
selves should be looked upor. with sus-
picion. The greatest discount any one
can get is 1 per cent on S1O0 worth,
which is the most the government al
lows"
Chief Thompson said although the
denominations of revenue stamps varies
from 1sc to $1,000, he has never dis
covered any greater than $50 being dis
counted. He said that stamps of the
denominations of 81, So, IS and $40 were
most offered and that the 81 stamps
were used with greater frequency by
swindlers.
For this crime the penalty provided
in the federal statutes is five years in
prison and a fine of 81, 900. Chief Thomp-
son as an Indication of the extent to
which the swindle was being carried on
said he had s., 500 in cancelled stamps
in h fo