The Providence news. (Providence [R.I.]) 1891-1906, 1899-04-22

the reason is that goods made at the
factory OF William NJ. Jacobs, OF Ian
caster Pa, which is the factory off,
cially designated as 374l. were found
TO have on them counterfeited revenue
stamps.
The United States treasury depart
ment. under which the internal revenue
tax is collected, does not take chances.
Rather than have any counterfeited
stamp escape the revenue collectors
throughout the country have received
instructions TO visit all Cealers in to-
bacco and seize and carry away all
packages OF tobacco bearing the factory
nLmber given above. In this city Jacobs
had considerable business and many
packages OF his goods were sold at
wholesale and retail.
The Carlton Cigar company. owned
by G. III. Carlton, at % Aborn street.
was the first shop visited by Tho depu-
ties this morning. They informed the
clerk in charge what they wanted and
Mr.. Carlton was sent for. When il was
explained that the deputies were TO
take possession of all cigars made at
the Jacobs factory he let matters drift.
as 1t were, and selecting $500 cigars, all
in packages Of 50, and worth $40 1000,
he turned them over TO the officials.
The deputies explained. after show
ing their authority. that the United
states holds the cigars for al least 30
days, at the end of which time the ci-
gars are disposed OF at auction. and
those purchasing them are permitted
10 take possession after stamps OF a
proper value have been purchased and
affixed 10 the packages. The new
stamps cost 1896 for each 1000 cigars.
The deputies sent for wagon 70 carry
away the cigars. and then proceeded to
the next place. where much the same
form OF procedure was gone through
with.
The deputies have instructions TO Wis
il every dealer in tobacco in the dis
trict and wherever any OF Jacobs goods
are found they will be seized The loss
to the Carlton company was s75 or
more. The goods were purchased in
good faith. for MIR. Carlton says he has
bought goods of Jacobs for more than
two years and some times when he
was head Of the Providence Cigar COM
pany, he had as many as 100000 of ia
cobs goods on hand There was no
reason to believe anything was wrong
and the full value was paid for the
goods.
OF course the value of the goods is
lost--a total loss-to the dealer. The
great United States does not stand for
any depreciation made upon its reVe-
nues, and the penalty imposed is Sc
we're as a rule
According to dspa tches from other
parts of the country the raid on the
tobacco dealers was begun yesterday
and IL will he continued SO long as there
is place unvisited.
Jacobs, with those implicated with
him. was arrested in Philadclphia- by
secret service agents and developments
show that Jacobs, who was really the
leader OF the gang, was about to put
into operation n plan To manufacture
"A az IN sAtafx NJ grlla
dred dollar notes.
Jacobs worked upon the theory that
every man could be purchased. ard IL
was his intention. after making this
large amount Of bogus money. to buy
a receiving teller i'm a sub-treasury, de
posit the counterfeits I'm sums of not
less than 100000. take certificate of
deposit and draw against them for
genuine money.
When chief Wilkie and his assist
ants interrupted the progress OF the
scheme they found a S5Oplate which
was even better than the plate from
which the 500 cbunterfeits were print
ed.
The countefeiters had the machinery
for making paper which would he al
most an exact counterpart OF that used
by the government. 1t was Ia boxes in
their establishment. Nothing had been
uDlf lNN Ndlu FtAAall- IL up aN IL MdN
feared this would excite suspicion. The
plan was ultimately 10 make enough
paper I'm week TO print the amount OF
money determined upon.
Among the counterfeiting outfit cap
tured are the dangerous plates from
which the 800 Monroe notes had been
printed. Notwithstanding the fact that
Secretary Gage recalled the Issue OF
these notes, Jacobs retained this dan
gerOus piece OF evidence. hoping TO use
IL I'm the future. The plate was too
good. in his opinion. to be destroyed IL
consists OF three pieces the front. back
and seal. To prevent rrstlng they had
been covered with beeswaX.
The new $50 plate was of two pieces
and is what is known as the Everett
note. This is considered the best piece
of work ever turned out by a counter
feiter. and " notes printed from ~ had
been circulated the probabilities are
that their genuineness would never
have been questioned.
The new 500 plate was about one
third completed. work having been done
ON front and back plates. Bredell. who
was the mechanical genius Of the gang.
All Of whom we're IN tho employ Of
Jacobs bad been ~ work upon this
plate IN the morninr. bad stopped 90 &C
Continued on rage Two)