The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-12-09
SMUGGLING
BROUGHT TO LIGHT
Believed More Than Five Millions Of
Gems Evadcd Payment of Duty
at New York.
FOREIGNERS WORKED TRICK
Game Finally Exposed When British
Cruiser Intercepted and Examined
Mail-Intcrcsting Sidelight ON Ant
werp Situation.

new YORK. Dec. s.-~-btlaliS OF uia-
mond smuggling plots. by means o.
which diamonds of some millions 81
dollars value have been brought into
New York without paying duty, were
told to your representative today by
a man familiar with the diamond
business Of Antwerp. IT was his esti-
mate that In the last six months dia-
monds worth $5,800.00o had arrived
in New York hidden in parcel post
packages. The smuggling has been
stopped by the seizure a fortnight
ago of the last parcel sent A British
cruiser nosing about the North Sea
stopped boat bound from Rotter-
dam to Copenhagen, rifed the mail
aboard and confiscated the parcel in
which were concealed diamonds to
the value of $4,000.
The man who had mailed the dia-
monds at Amsterdam was aboard.
The parcel was consigned TO him at
New York. This man, ii Is under
stood, came on to New ork. and not
until some time later did the four
firms and three individuals who own
ed the diamonds learn what had be-
come of their shipment
Back of the adventures OF this
unlucky lot OF jewels lies an unusua.
tale of conditions in one of the most
adventurous businesses on earth In
past years the German government
has had its own supply of diamonds
from miners in East Africa Berlin
diamond merchants gradually accum-
ulated a good-sized reserve of uncut
stones from these mines, SO that when
the European war began they had a
plentiful supply on hand.
Forced TO Reopen Works.
After the German occupation OF
Belgium heavy fines were levied on
all Belgian manufacturers who did
not return TO Belgium and reopen
their factories. To escape this tax
some of the diamond manufacturers
resumed business All of the Ant
werp diamond merchants who were
Austrian and German subjects set UP
in business again, and the Berlin dia =
mond merchants sent to Antwerp
large quantities OF their stones for
cutting and polishing
In Amsterdam. the center of the
diamond industry, the manufacturers
have to pay their skilled workers $50
to s32 week. which is big money
in Holland. But when the diamond
manufacturers resumed business in
Belgium the skilled cutters and pol
aishers there were jobless and starv-
ing, They were put hack 10 work al
about Sc week. This cheapened ia
hor made it possible Immediately for
the Antwerp manufacturers to pro-
duce cut stones at an average of 30
per cent less than Amsterdam could
do. Only one problem arose-how
could these stones be got to America
and sold at the market price. yield
ing an enormous profit?
OF course. there was more SNUG
Cling than ever by persons who Sc
GREETED stones in their clothing ana
came to America with them. But
larger and more regular shipments
becoming necessary, the parcel post.
which had been used successfully to
smuggle furs out of Germany, was
resorted to.
Neat Smuggling Job.
Several Antwerp dealers got to-
gether and made up packet of dia-
laonds which were entrusted to a
man who carried them on his person
10 Amsterdam There he hid them
in any innocent object suitable for
mailing, which he addressed to him.
self at New York. or to the eonfed-
crate already in this city. The pack
age was then mailed as the parcel
at Amsterdam, with absolutely moth
ing to show that any such shipment
of diamonds had been made. This
defeated the United States customs.
for when the package was opened at
New York TO see II 1t contained any
thing dutiahle or suspicious, the Gus
toms Inspector gaged upon book
a round Dutch cheese or some equally
ordinary shipment that he had no
reason TO suspect.
This was very simple and satisfac-
tory. The parcel mailed at Apister.
dam almost invariably went to Rot
terdam, the seaport. and thence by
boat to Copenhagen. There it was
put on a liner bound for this port.
This was exactly the course adopt
ed In handling the valuable package
which Great Britain intercepted. In
II four New Workers had stake
Three of them do business in a
building noted in the diamond trade
as the home of the shadier dealers
They were tho -four firms interest
ed. The three individuals included
the man who was to convoy the par
Gel to this city.
''SaxippU' Is Austrian Subject.
The convoy. known Familiarity as
the skipper" Is an Austrian subject,
= wealthy diamond merchant of Ant
werp. where he had been in business
for twenty years before the war. He
is said to be native Of Cracow, and
was president of one of the innum-
cradle little diamond clubs that filed
Antwerp before August. 1914
OF the four New Workers inter-
ested. one Is reputed to be deserter
from the Belgian army. He has a