Federal Agents Bust Counterfeit Cigar Ring
Internal Revenue agents launch a citywide crackdown on local tobacconists caught refilling boxes of high-end cigars with inferior substitutes.
The story, cleaned up
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The arrest of Henry Silberstone, a cigar dealer, charged with having refilled cigar boxes, marked the beginning of a war that will be waged by the United States Internal Revenue agents against dealers all over the city who have been engaged in similar practices. Silberstone is alleged to have bought several boxes of 'Cremos' cigars, and after selling the genuine article at the regular price, refilled the boxes with a cheaper article, which he sold at eight for 25 cents, explaining to his customers that the only difference in the cigars was in the matter of the bands. A cigar manufacturer interested in the case said: 'Substitution of cigars or refilling of boxes has been going on for some time. We have spent thousands of dollars advertising one particular brand of cigars, and it is the name of this cigar that has been illegally used. The bands were placed upon our goods to protect our customers against just such a fraud. The Federal authorities expect a number more of arrests shortly.'
“Substitution of cigars or refilling of boxes has been going on for some time.”
This early 20th-century consumer fraud case mirrors modern debates over brand authenticity and counterfeit goods sold in online marketplaces. It reflects a time when federal authorities were increasingly focused on enforcing trade laws to protect regional and national manufacturer monopolies.
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