The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1997, Landmark Communications, Inc.

DATE: Thursday, January 30, 1997            TAG: 9701300409
SECTION: FRONT                   PAGE: A11  EDITION: FINAL 
SOURCE: FROM WIRE REPORTS 
DATELINE: WASHINGTON                        LENGTH:   45 lines

NUMBER OF GUN DEALERS HOLDING LICENSES IS CUT IN HALF IN 4 YEARS

The number of federally licensed gun dealers has been halved in the past four years, Treasury Department officials said Wednesday, reflecting new rules that make it harder to get a license to sell guns.

The drop has been particularly sharp in some big cities. The number of dealers in Detroit, for instance, dropped to 92 in 1996 from 468 in 1993. In Chicago, there were 11 dealers last year, compared with 256 in 1992. In Virginia, the number of dealers dropped by 58.8 percent, and in North Carolina the decline was 54.8 percent.

While the report didn't address the topic of gun sales, law-enforcement officials believe that cracking down on fly-by-night gun dealers helps keep guns away from criminals. ``There is a reduction in gun-related violence, and I feel this played a part,'' said Raymond W. Kelly, the Treasury undersecretary for enforcement.

The crackdown on licensing is being matched by increased effort to trace guns. Kelly said the tighter regulations make it easier to trace guns used in crimes, especially with more legitimate dealers keeping good records.

Kelly also said the effort ``significantly reduces the potential'' of gun trafficking. He related an anecdote about a New York dealer who put 1,000 guns on the street - 200 of which were used in crimes. ``Today, he would never get a federal firearms license,'' Kelly said.

About 60 percent of the successfully traced crime guns originally came from only 1 percent of federally licensed dealers, meaning guns diverted to the illegal market are concentrated among a small number of shady dealers, according to the Treasury Department report.

Among the new rules, which were implemented in 1994: Gun license applicants must provide fingerprints and photographs for background checks. They also must have face-to-face interviews with federal inspectors and must comply with all state and local laws, notably zoning laws. In addition, the license fee was increased to $200 from $30 for three years.

Previously, ``kitchen-table'' dealers mailed in an application with the nominal fee for a federal license to sell guns - a process that some have said was easier than getting a driver's license.

Overall, the number of federally licensed dealers has dropped to 124,286 from 286,500 in 1993.

KEYWORDS: GUN DEALERS STATISTICS STUDY


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