The Dawson news. (Dawson, Ga.) 1889-current, 1913-02-11
AFTER STAMP BROKERS
GOVERNMENT INSPECTORS UN.
COVER HUGE ILLEGAL TRAF-
FLO IN POSTAGE STAMPS.
REACHES INTO THE MILLIONS

Stolen by Burglars and Embezzled by
Employees, They Are Bought by
Brokers and ResOId Below Their
Face Value.
WASHINGTON.-Il traffick-
ing the country over in stolen post
age stamps, aggregating several mil
lion dollars annually, has just been
disclosed by postoffice inspectors,
whose investigations were reported
today to Postmaster General Hitch
cock. They involved so-called stamp
brokers and confidential employees Of
large business concerns throughout
the United States.
Through confessions obtained by
the inspectors from some of the bro
kers whose opinions were investigat-
cd il was learned that stamps of all
classes and denominations, stolen by
burglars from postoffices and embez-
.zled by employees from great business
houses and manufacturing establish
ments, were purchased and resold by
the brokers at prices far below their
face value.
The postal laws make it crime
punishable by Imprisonment to sell
any stamp issued by the government
for less than its face value. Investi-
cations disclosed that in addition to
selling the stamps for less than a
price they could have been purchased
for from the government, the brokers
knew that the stamps were stolen
when they purchased them.
Formed COnspiracies.
Inquiries showed in some instances
5bev entered into a conspiracy with
employes of business houses to buy
at prices agreed upon all the stamps
the clerks could steal from their en-
ployers.
The result of a series OF lndlct-
mants resulting from the invest1ga-
lions were handed down sealed in
New York city yesterday. The men
indicted were Richard Fredericks, IT.
wing Seyel and John Frank. District
Attorney Whitman has informed the
postofice department there Will De
other indictments.
Frauds against the government
and various business concerns aggre
eating hundreds of thousands OF dol
lars annually have been uneartneC
in New York city alone, while lllega
+raficking in stamps in Boston, PM
adelphia. Baltimore, Pittsburg, chi
cago. Indianapolis, st. Louis, Mime
apolis and Cincinnati, New Orleans
San Francisco, Seattle, Portland
Ore. and many other cities ha
reached large proportions.
New. York Brokers.
In New York approximately TWEEN
ty so-called brokers make a bushes
of purchasing postage stamps at
price ranging from so cents to 81
cents on a dollar and selling them tt
merchants at prices varying from 81
to 80 cents on dollar.
One stamp broker in New Yorl
city, who sells from 800 to 1,0O(
dollars worth of stamps day to mer
chants, it is alleged, has been pur
chasing some of his supply from al
employee of the New York state gov
eminent at Albany.
The employee confessed to postof
fee inspectors that he RENTED tc
the stamp broker from $25 to $50 a
week in stamps from the state. An
official of foreign organization with
headquarters at Chicago confessed
that for a long time he had been
stealing stamps from the association
and hypothecating them.
One broker advertised by means of
a sign carried through the New York
financial district during the noon
hour that he purchased printed un-
cancelled post cards. This resulted,
it is said, in many office boys steal
ing cards from their employers and
selling them to him for 35 cents a
hundred The printed portions OF
the cards then were skillfully cover
ed with a piece of thin paper, and
the cards resold. The culpable bro
ker, according to his admission to
the inspectors, sold during the last
Two years. more than 100000 pos
fal cards.