Into Western Union's local office at Bridgeton, NJ. seven weeks ago walked Nelson Stamler, New Jersey's deputy attorney general. He had not come to send a telegram, but to arrest Office Manager Charles Frake, 39. The charge: operating a horse-betting establishment. Records seized by Stamler showed that in one year Frake's office had handled the transmission of $300,000 worth of horse bets by telegraphed money orders to out-of-state bookmakers.

Last week, a Cumberland County grand jury indicted Frake and the Western Union Telegraph Co. on bookmaking charges. It also indicted four St....

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