New-York tribune., 1910-09-11
Clerk and Broker Now Under
Arrest-LosS of Million DOL
lars a Year in Revenue.
ACCIDENT LED TO EXPOSE
Trap Laid by Deputy Controller
and Police-BundIe of Used
Transfer Stamps Sold by
Clerk Recovered.

q good start on the work OF breaking up
the trade in used stock transfer stamps.
which is causing the state a loss Of
approximately Sl.00000O a year in its
revenue receipts
Through the faithful and keen work Of
? clerk in the brokerage office of Je-
rome J Danzig & Co. No 100 Broa dWay.
the Deputy Controller was able TO offer
sufficient testimony against both the
clerk VII II is alleged stole the stamps
and the s amp broker who is said to have
received ,hem TO have each held in
$4,000 bail Timothy J. Sullivan, the
clerk pleaded guilty to larceny. and was
held for trial Ben Alexander, the stamp
broker. WIS held for examination next
Wednesday,
Exposure Due to Accident.
The Controllers Office has evidence
relating to q dozen other stamp broker
age Offices. and hopes 10 make the bust
ness unsafe. but the state officials re-
gard il as peculiar that bill which they
tried 20 have put through the last Legis-
iature- making II q nisdemearor TO buy
or sell the cancelled stock transfer
stamps. was defeated through the activ-
ities Of 2 strong lobby
The exposure of the two men who were
arrested yesterday was made possible
through z pure accident. but the slip
made by one of the stamp dealers had
u he followed hy 3 careful hit Of de
Iective work 10 gain any result.
About two weeks ago as Mr.. Eallett
told the story yesterday. James Perry,
2 Young man in DanZig & Co s office,
was about 10 leave for the night, when
he discovered a bundle of cancelled
transfer stamps in the wash basin He
took them into the main office and told
Sullivan. who was the only other clerk
left, Of his find.
Il wonder how they got there?" Perry
asked. Then he said: Well. we'll Just
put them in the safe. and tell Mr.. Dam
zig about them Monday morning"
Trap Worked with Clerk.
II was a Saturday night. Sullivan
closed the safe. and apparently the Incl
dent But on the Sunday morning fol-
lowing Perry was surprised by call
from Sullivan. Perry lives in Conger'
y Y According TO Mr.. Hallet. Sullivan
made no concealment. but openly ad-
77.ifted to the younger clerk that he had
mt the bundle Of stamps in the wash
basin Intentionally, and ended by ask
ing him 10 refrain from advising the
head Of the firm of the discovery.
Perry put him off with indefinite
repl-- on the Monday. however. Perry
took the matter UP with Mr.. Danzig and
the latter summoned Hallett. and it was
agreed that Perry should appear to fall
in with the scheme and trace the bundle
TO the receiver of the stolen goods
The next day Perry told Sullivan that
he was in need Of little money, and II
vas arranged that they should take a
bundle Of about six hundred cancelled
stamps to a broker
They went TO No. - New street. where
Sullivan. accompanied by Perry. left the
bundle with man who gave the name
Of Ben Alexander. and the day after
that Sullivan profered to Perry s. as
his share Of the deal
Perry intimated that II was a pretty
srrau amount for such a package. and
though Alexander declared that only
few Of the stamps could be used. he gave
Sullivan another 50.
Detective Finds Stamps,
When the Deputy Controller was ap-
prfsed Of these steps he called in Lieu
tenant Farley. of Police Headquarters,
who arrested both Sullivan and Alex
arder. charging the latter with receiV-
ing stolen goods. In cabinet In Alex
snder's Office the detective found the
bundle Of cancelled stamps described by
Perry.
The stamps. like all the cancelled
rtamps held in brokerage Offices, were
attached TO the sale ticket Of the stock
The stock brokers are bound to hold
these tickets at least three months from
tie date Of the sale, and, in fact the
states stamp on the sale ticket is neces-
sary in any legal tangle which may arise
over The ownership Of the stock
One s. stamp constitutes the tax on
each sale Of one hundred shares of the
par value Of 500 a share, and that ratio
Of tax is maintained whatever the market
value OF the stock may be at the time
Of each sale
Crooked Work Sin1pIifed.
A very little pasting work with thin
tissue paper. or q careful ironing and
eraSing serves 10 render these stamps
almost like new ones In appearance,
said Mr.. Hallett last night, and when
you think that there are some four hun
dred brokerage houses on the New York
Stock Exchange alone. each of them
using thousands Of these stamps annu-
ally, il is easy 10 understand what a vast
total the state is robbed Of in the course
Of a year.
The Empire Trust Company is the
only authorized agent Of the Controllers
Office IN the sale of these stamps, but
these stamp brokers, by buying can
celled and stolen stamps at ridiculousy
4ow figures and selling the renovated
toot at moderate percentage under the
Igitnlate price. teTapt hundreds Of
young clerks and messengers in Wall
e1reet with the result that the cancelled
ramps are used over again in hundreds
.. stock sales, and this without knoWl-
eoee Of the crooked work going beyond
sAt transfer clerk, whose duty it is TO
'voA after the sale tickets
- BROADWAY, CORNER THOMAS ST.
ne ofrce Of Savannah Line Reserva-
Solh made and tickets sold TO all points
-ta Csl OF telephone 2535 Spring.-Advt-