Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-12-12
Uncle Sans officials SwOOp Down
on an Army Of Alleged Illegal
Dealers in 0leomargarine.
TWO BIG FIRMS NOW IN TROUBLE.
Lots of Evidence Has Also Been Secured
Against Wholesale and Retail Deal
erS All Over the District.
MANY OF THEM PLEAD INNOCENCE.
The First Named viOlatOrs Will Rave to Psy $3.50 fo-
Licenses.

Internal Revenue Collector Warmcastle,
with the assistance of four Government in
spectors, has opened up a wholesale warfare
on a. small army of alleged bogus butter
dealers in this district.
Yesterday the Collector took possession of
the establishments known as the Western
Butter Company. Water street, and the Key
stone Butter Company, OF Smithfeld street,
and he will report the result of his inyesti-
cations TO the Internal Revenue Commits
sioner al once and await further instruc-
tions.
The raid has been in contemplation for
some time. and the plans for the same were
most carefully worked. The Collector OBJ
tanned information enough, some weeks ago,
to warrant the present seizure, and several
davs since the books of the two firms men,
toned were taken possession Of. From
this source the names OF about
5000 customers of these houses were
obtained, and since that time the
local authorities and inspectors have been
securing evidence against the dealers, both
wholesale and retail. who have been selling
the bogus article. They claim to have a
q
vincing when the cases coraP up for trial.
About u Score in Great Trouble.
Among the alleged victims OF the trade in
oleo are some 10 or 20 wholesale merchants
of this city, and to say that they are in
great trouble is putting it mildly.
4 well-known commission merchant said
Yesterday: This affair will create a sensa-
ton before it is over. Now, have been
buving from one of these houses what pur-
ported to be butter. 1 paid for that article,
and the packages In which it was delivered
bore no evidence whatever that it was any
thing else. sold it in good faith to my
customers, and they in turn sold it direct to
the customer.
Il received no complaints whatever, and
supposed everything was all right What
was my surprise. then. yesterday, to have a
Government official walk in and tell me
that would have to take out Government
license !or the sale OF oleomargarine. re-
piled that 1 guessed not, as 1 did not deal
in that class of produce. He only smiled at
this, and said he had evidence that did.
1 asked hai where he obGaIned anything of
that kind, and be replied that he got it from
the books of the firm in question.
Over Three Thousand on the Roll.
Now. l can prove that ordered butter,
and my shipping clerk will testify that
there was nothing whatever to show that it
WAS anything beside genuine butter.
have since learned that these officials have
obtained over 5000 names in tRssame man
ner"
a call was made at the Office of the Key
stone company during the afternoon. The
place had drear and deserted air, so far as
signs of business were concerned, but at least
a half dozen men were standing about the
front of the main room. One of them,
= member of the firm, was asked if
the company was having any trouble with
Uncle sam in regard to the sale of oleo. He
replied that the Government officials had taken
charge of affairs, and at once advised the re-
porter to see the Internal Revenue Collector.
He was then asked if he would give the names
of the men who composed the firm. This he
also refused to do, but added that everything
would be cleared up all right in time.
The Western Butter Company people took
about the same view of the matter, but ap-
peared to be very hopeful of the situation.
Later 4 call was made at the office of the Col.
leCtor. The statements as made above were
substantially confirmed, butthe officials did not
care to say much about ii, one way or the other
reach into the thousands. but the 200 limit was
said to be a little too steep.
The Penalty Often Not Enforced.
What is the penalty in cases where retailer:
have scld oleomargarine without a Government
license?" was asked.
We'll, as q rule. these cases are usually set
tied blythe offenders taking out license. These
cost SIS each.
How is il in the case of the whoesaIers?"
$3.50 each"
In case the two companies whose books are
now in the hands OF the Government are con
victed of any irregularities what are the penal
ties provided"
The parties are liable to fines of 5000 an(
Imprisonment from one month to one year"
This was about all that could be learned
though it was clearly apparent that the official
had taken time to work the cases up thor
oUghly, and knew what they were doing before
tLey made move. In all the fines arr
collected and the license fees all secured il
what seems to be excellent cases. the Gov
crnment will be many thousands of dollar
better of. before all The cases are disposed OF
The action of the officials has already created
the greatest kind of excitement among tn,
dealers. The seizure of thousands of pound
of bogus butter which has taken place in th
district considered bad enough, but til,
fact that all of the parties will have to pa
Government licenses was still worse.
Proofs Must be Put in Writing
For two or three davs the Collectors ofic,
las been a sort of headquarters for people VIII
were seeking information about the situation
many trying to establish the fact that they wer
innocent OF any knowledge that they were sell
ing cleo. As rule, the latter class were in
formed that they had better reduce thei
proofs and statements to writing, and sen,
them in for future reference.
One thing that made the case of many maj
look bad. however matter how good hi
statemets sounded, was the fact that the good
were found in his possession. putting the bur
den OF proof on his shoulders. trhe raid wa
kept very quiet for the reason that the official
were anxious to get proof in as many cases a
possible
Another phase of the many cases that i
hound to create lots of trouble, so the author
ties say. IS the fact that the laws of Pennsvlva
MIA prohibit the sale of Oleomargarne at ali
except in original packages. Whether tn
cases viii be carried any further after the Gov
eminent gets through with them is only mat
ter OF SuTmise.
The Western Butter Company was forme
some months ago. 4 number of dealers poolin
their issues When operating independent
the members each had to take out $3.50 liceuse:
The firm consists of Frank McCanse Scot
Brothers, Charles Really and George s Maj
tn BY this arrangement one item of expens
on Licenses alone of nearly 5000 WAS saved
II is thought that decisive steps will be lake
fVoI1a xriD