New-York tribune., 1910-07-18
Profit of 200 Per Cent Sometimes.

After obtaining these tickets the dealer
removes the stamps and sorts them, some
houses from which they originally came at
a profit of from 100 TO 200 per cent. The
emplo{e purchasing these stamps afixes
them in the payment of the tax to memo
randa of sale delivered from his office. The
unused stamps which are furnished him by
his employer to be attached to these same
memoranda of sale he sells instead to The
stamp dealer at from so to 70 per cent of
their face value.
In many instances the stamps, while at
tached TO the sales tickets in the brokerage
houses, are not properly cancelled. either
through carelessnesS or design IT is an
easy matter for these stamps to be subse-
quehtiy removed either by the messenger
ooys or by the stamp dealers themselves
ana cancelled stamps put in their places
brokers' frequently send messengers with
d ceTtlled check drawn to the order of the
agent of the Controller authorized to sell
stamps 10 make necessary purchases In
boy obtains the stamps from a stan1n dealer
at a discount of from to per cent. de-
hyerlng the certified check to the dealer.
VINO IN turn presents it to the agent OF the
controller and purchases stamps of small
denominations which are in such demand
that the dealer can easily dispose of them
a par
The department realized at once that #
would be necessary to cut off the supply OF
stamps which found their way into the
hands of the dealers. In following out this
work we nave been surprised at the ingen1i-
lty displayed in eradicating the cancellation
marks from the stamps many djfTerent
methods being employed. Notwithstanding
the degree of perfection to which this work
has been brought, the examiners of the de-
partment have found thousands of tickets
with stamps affixed ranging in value from
81 70 $50, which clearly Indicate their sec
Ond use. AS evidence of these methods the
Controller has the signed confessions of
several brokers' employees and messengers.
and also many oral confessions, which cor
roborate each other and explain the meth
DDS by which from $500 to $1SOO have been
realized by messenger boys in the course of
one years transactions. The department
has found emanating from at least one hun
dred different brokers' offices tickets civ
ing clear evidence of the second usage of
stamps and dishonesty on the part of bro
kers employees. Almost invariably the bro
kers themselves had no suspicion of this
cases it has been difficult to convince them
of the fact. but on being convinced. III every
instance they have afforded the department
their hearty cooperation in its endeaVor to
eradicate the evil. and many employees have
lost their positions because of the discovery
of these wrongdoings, the result of which
might lead to theftS of far more serious
nature Members of brokerage firms whose
employees have confessed to such thefts are
loath TO prosecute i'll individual instances
because of the comparatively small amount
tendant upon the prosecution. In one in
stance, however, four boys were arrested
and held for the grand jury. The evidence
was submitted to that body. but no indict-
ment was returned. The moral effect of
this failure to indict was Immediately
shown by an-increased activity among the
stamp dealers.