The Washington times., 1920-01-29
U. S. Agents Round Up Leaders
Of Ring That Fought
Treasury Drive.
WAR STAMPS ALSO SEIZED
Women Stenographers and
Clerks Among Those Taken
Into Custody.

In a countrywide cleanup, with
wholesale raids on offices of bond
brokers" in many cities, overnight
developments at the Treasury today
showed. several million dollars worth
Of war stamps and stolen Liberty
bonds have been seized. and nearly
one hundred men, and numerous
women accomplices, have been ar
rested.
Ringleaders Caught.
Secret Service Chief John Moran.
assisted by an Army Of sleuths. re-
viewing the results of the roundup
today, felt convinced that the dragnet
had caught the ringleaders in a gi-
gantic scheme, with many ramifica-
tions that would have served to de-
feat the Treasury's drive to benefit
legitimate investors.
Chief among the offenders are al
legged brokers" who are styled as
fences" by Treasury experts. through
whom vast quantities of war savings
stamps have been unloaded, and
through WHICH channels large
amounts Of Liberty bonds. previously
recorded as stolen, have been traced.
The raids and seizures have occupied
the attention OF the Treasury agents
chiefly in such cities as New York.
Chicago, Springfield. ILL.,. st. Louis.
Baltimore and Philadelphia.
Plenty of Proof.
Treasury officials explained that a
large proportion OF the stamps seized
from brokers' Offices were confiscated
under the law which prohibits any in
dividual from possessing more than
81 900 worth Of war savings stamps.
No individual being permitted to
have a larger amount. and the stamps
being non-transferrable, the finding
| of larger amounts on premises of
| brokers" constituted prima facie
proof of guilt under the law. In prac-
tically all cases, however, other proof
had been obtained, including the max
ing of fraudulent affidavits sworn to
by the brokers" as a means of cash
ing in stamps at postoffices.
Perhaps a score OF women, many OF
them stenographers and clerks. en-
ployed by brokers" to execute their
plans, were arrested along with the
\ principals, to answer charges pre-
ferred by Federal district attorneys
At the Treasury today it was saio
many women arrested are held as ma
terial witnesses. In other cases. how
ever, there are some who are held to
be equally culpable with the proprie-
tors of the places affected.
| The nation wide roundup of un-
scrupulous brokers" has led the
( sleuths, in some instances, to num-
Der of plants which had been set up
| with elaborate equipment for the
printing Of war savings stamps. The
| Investigations, which have been car
ried on so quietly that little was
known here of the probe until today.
has also resulted in the recovery of
huge amounts OF Liberty Bonds.
stolen at different periods. which
eventually found their way into the
brokers' officers.
These have been traced back in
many instances and the offenders ar
rested.
| @Yeggmen- in Net.
The search has netted the Secret
Service agents the arrest of several
notorious "yeggmen," whose appre-
hension will clear up a number OF
bafrling postofrice robberies In the
Middle West, where their operations
have mystifed detectives for some
| time.
With the arrests thus far made,
and the evidence collected, the Secret
| Service is bringing to climax a
drive that will rid the country of
what the Treasury regards as a real
menace. The seizures and arrests are
to be followed by others. and the
developments of the next few days
probably will reveal the thorough
| ness with which the Treasury's
operatives have conducted their drive
against violators