The sun., 1916-01-27
DIAMOND IMPORTER
HELD AS SMUGGLER
Austrian. Dealer in Antwerp
Before War. Accused Of
Conspiracy.
L. s. MAILS USED BY GANG

That the Federal authorities have
adopted vigorous measures to stamp
out the irregular Importation OF dia-
monds said to be due to the German
occupation OF Belgium was indicated
Yesterday by the arrest of Jacques
Goldstein, an Antwerp diamond dealer.
who came to this country after the out
break of tho war. Goldstein Is an Aus
trian by birth. but he lived In Antwerp
and did business there for two years
before hostilities began. He was held
by United States Commissioner Iiough
ton In $4,000 bail on a warrant charging
him with conspiracy to smuggle.
Goldsten's Coconspirator named IN
the warrant is Samuel CANCEL "A Belgian
now in Scheveningen. Holland. GAN
gel, according to the complaint was
TO have $4,000 az his snare OF the
scheme to smuggle Antwerp diamonds
here by way of Holland.
The situation which the customs and
Treasury agents are now endeavoring
TO cope with In their new campaign
arises from the determination Of the
British authorities to prevent the eX-
portation OF diamonds from Belgium and
thus curtsil profits which might be made
by Germans To get their diamonds
by the blockade. the Antwerp merchants
are said to have resorted to all sorts
of measures. including the shipment OF
the gems In registered mall and their
concealment in parcel post packages
According to an unofficial estimate,
$5.000,00O worth OF the diamonds are
said to have been sent through Holland
TO this country BY such means. Many
of the stones thus exported were from
the German Government, mines In East
hnA t.-an. : ,A
Antwerp market after the German oc-
cupaton.
Most OF the Belgian dealers who came
here made their headquarters in a build
ing on Nassau street. where as many
as four or five occupy single office.
Goldstein made his headquarters in an
other building at Il Nassau street
When the British authorities found
that the diamonds were be.ng shipped
| indirectly through Holland they en-
tered into "A pact with the Dutch Gov
ernment for more rigid supervision
OF expectations. II was then. according
to Assistant United States Attorney y
John r.. Walker, that the Beig!an iner-
chants IN Holland resorted to the use
of the mails. The shipments by regis
| tered mail were not, as a rule. made
| To avoid the payment Of duty. MIR
Walker said. as they were usually in
were however. contrary TO the rules OF
| the Universal Postal Convention and
| the importers were subjected TO fues
! equal To the amount OF duty plus Il
small penalty
When the registered mail shipments
| continued In spite OF the fines the Gus
! toms and Treasury authorities gsV.
warning that after last october al
! such shipments would lie seized whether
| they Mere properly invotced or not. III
/ the meintln" II was discovered that
! actual smuggling had been done IL
! effrtS "a get Belgian diamonds int
| tUI- country
That tn. mails We're being used 'c
( GET the diamonds TO this country was
. brought io light more than montt
Z ago. when British cruiser IN the Sorti
. Sea stopped boat bound FROM Rotter
and cor'iscated a parcel containin,
/ SisO. 600 worth OF diamonds The gem!
ar. said to have been sent from Ant
! w-rp b. merchants there who entruste,
the shipment to AN agent The latter
:" the story runs, Snatled the package a
Amsterdam
The man who mailed the package wal
on board the ship stopped I'm accord
enc" with his original plan, hs cam
on To this country. He is deserted n
an Austrian subject who del pros
Ferrous business as II diamond dealer II