The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-01-24
Illegal Business Amounts
to Several Millions OF
Dollars Annually.
PREMIUM PUT
ON PETTY THEFT
So-Called Broker" Act as
Fences for Post Office Rob-
bers and Employees Who
Fitch From Their Firms.
system Permeates Prac-
tically Ali Big Cities.

Washington. January 2s.--Illegal traf-
hcking the country over in stolen
postage stamps, aggregating several
millions of dollars annually. has just
been disclosed by post-offce inspec-
tors whose Investigations were reported
to-day to Postmaster-G General Hltcn-
cock. They involved so-calied stamp
brokers and confidential employees OF
large business concerns throughout
the United States. Through con-
LESSONS obtained by the inspectors
from some of the brokers whose oper-
atoms were investigated. il was learned
that stamps of all classes and demon
nations stolen by burglars from post
Offices and EN- bezzied by employees
from great business houses and manu-
featuring establishments We're pur-
chased and resold by the brokers at
prices far below their face value
Crime to UnderseII.
The postal laws make II a crime
punishable by Imprisonment TO sell
any stamps issued by the gorernment
for less than its face value Investiga-
tons disclosed that. in addition TO
selling the stamps for less than price
they could have been purchased for
from the government. the brokers
knew the stamps were stolen wnen they
purchased them. Inquiries showed that
in some instances they entered into a
=
houses TO buy at prices agreed upon
all the stamp the clerks could steal
from their employers. The nrst OF
a series of indictments resulting from
the Investigations was handed down
sealed in New York City yesterday.
The men indicted were Richard Fred
ericks, Irving ("IzZy'D Sevel and John
Frank District Attorney Whitman
has informed the Post-Office Depart
ment there will be other Indictments
Frauds against the government and
various business concerns aggreseting
hundreds of thousands of dollars an
nually have been unearthed in New
York City alone, while Illegal fraffrck-
ing in stamps in Boston, Philadelphia,
Baltimore, Pittsburgh. Chicago, indian
apolis. St. Louis. Minneapolis and Gin
cinnafi. New Orleans, Kansas City.
Denver, San Francisco. Seattle, Port
land. Oregon. and many other cities
purchased large proportions
In New York approximately twenty
so-called brokers" make business of
purchasing postage stamps at price
ranging from 80 cents to 90 cents on
dollar and selling them 10 merchants
at prices varying from IS to 30 cents
on a dollar.
One stamp broker in New York City,
who sells from $500 TO 81 coo worth of
stamps a day to merchants, II Is ex-
blamed has been purchasing some OF
his supply from an employee of the
New York State government at Albany.
The employe confessed to post-office
inspectors that he RENTED to the stamp
broker from SIS to $50 a week in stamps
stolen from the State An official OF a
foreign organization with headquarters
at Chicago confessed that for a long
time he had been stealing stamps from
the association and hypothecating them
Sold Stolen PostaIs.
One broker advertised by means of
a sign carried through the New Y ORR
financial district during the noon-hour
that he purchased printed uncanceled
postcards This resulted. it is said. in
many Office boys stealing cards from
their employers and selling them to
him for IS cents hundred i ne
printed portions of the cards then were
skilfuily covered with piece OF thin
paper and the cards resold- The culp-
able broker. according to his admission
TO the inspectors. sold during the last
two years more than 2.oo0oo postal
cards.
The department redeems-p postal cards
from original purchasers at IS per cent
of their face value. A few weeks ago
a member of Congress and former
deputy ommissioner of police of New
York City requested the third assistant
postmaster general to redeem over
million cards for a constituent of the
Congressman. Inquiry by inspectors
developed the fact that the cards were
the property of stamp broker whose
business is declared by the department
officials to he clearly illeeitimste-
Two Arrests Made
New York. January 2S-Detectives
arrested this afternoon Richard Fred
ericks n stamp dealer. and Irving
Sevef keeper of newsstand. on
charges of having received stolen
stamps. other arrests. the detectives
said would follow soon
Office boys in the Wall street section
piIfcring the stamps from their en-
Dlovers have done a thriving trade the
mas; few months. the detectives said
Fredeucks and Sevei are alleged TO
bave received stamps thus stolen.