The Washington times., 1925-05-07
8 ARRESTED
FOR
STAMPS
War Savings Securities Were
Made by Pittsburgh
Gang, Is Charge
By ROBERT s. THORNBURGH

By ROBERT s. THORNBURGH.
With the indictment of eight
men in Pittsburgh charged with
Illegal manufacture of war savings
stamps, the United States Secret
Service announced today that one
of the most extensive counterfeit
ing rings that ever operated in
America had been cleaned up.
The Pittsburgh arrests brought
the roundup of counterfeiters and
their agents to more than forty.
All will be brought to- trial within
the next thirty days in Pittsburgh,
Chicago and Cleveland.
Nationwide Activity.
The trail OF the bogus war saw
tngs stamps led secret service
agents to all parts of the United
States, resulting in arrests in Chi
cago, Cleveland, and other cities.
The secret service said a total OF
$4,000 in counterfeit stamps are
III lAAC A0A40S Va LAO II CoS0Ay anu
that it is anticipated others viii be
discovered during the course Of the
investigation.
Several counterfeiting plants we're
captured in secret service raids at
Chicago, where headquarters Of the
gigantic conspiracy is believed to
have been located. The Pittsburgh
office OF the ring apparently was a
distributing center for the East,
operating on orders from the Chi
cago headquarters.
The Treasury said that Cleveland
was used both for a production
and distribution center.
Distributing Centers.
Quantities Of war savings stamps
were sent from Cleveland and Chi
cago to other distributing centers,
placed in the hands OF friends or
agents Of the counterfeiters, who
attempted to cash them at post
offices and in stores.
Officials explained that millions
Of dollars in bogus money has
been employed since the prohibit
ton amendment went into effect
to buy smuggled liquor. The
whiskey was later converted by
the counterfeiters into genuine
cash on the bootleg market.
Forced Into Trade Channels.
With the Government active
against smugglers, liquor is be-
coming more difficult to obtain in
large quantities.
The counterfeiters deprived of
their bootlegging sideline are being
forced out into legitimate trade
channels to be picked up by the
Secret Service.
Under cover of the outlawed
LIQUOR business the counterfeiting
fraternity piled a lucrative profess
sion, according to the Secret Serv-
ice.
The rum smuggler and bootleg
ger was a much abused victim Of
this class of criminal. When the
hquor vender bit on bogus paper
he was obliged 10 remain silent
or chance arrest by complaining TO
the authorities.
Consequently comparatively few
counterfeiting cases reached the
Eotice of the Federal authorities
end many of the producers Of bad
money escaped arrest.
Under conditions where bootleg"
In sold the counterfeiter had little
difficulty in getting rid of his
spurious money, while the SNUG
AAEE LdlCE CHI
barrassment in passing it on.
With the counterfeiter driven out
into the open, and no longer able
to rely on turning his money into
real coin through a liquor turn
ever. the Secret Service has been
successful recently in obtaining a
large number Of convictions.
Officials said that counterfeiters
are more active than for several
years and that they are becoming
Increasingly bold in trying to pass
their wares.
COunterfeifs Are Bad.
Most of the money put in circula-
ton is a poor imitation, but Of
hcials said that several $40 gold
certificates were picked up indi-
eating the work of experts.
Secret Service operators suspect
the existence Of a widespread con-
spiracy to circulate bad money
from the fact that identical coun-
terfeits have been picked up in
widely scattered localities.
A number of investigations to
determine whether or not organic
cd rings are operating, is in prog
ress.
The Secret Service has a con-
siderable quantity of spurious
money and counterfeiting parapher-
MALTA in storage at the Treasury.