Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1909-04-17
INDICTMENT FOR
FRAUD is FOUND
AGAINST CUDAHY
PACKING CO. is ACCUSED OF
DEFRAUDlNG GOVERNMENT
is CHARGED WITH VIOLATION OF
REVENUE LAWS
Nearly Seven Hundred Counts Carry
Fine of $1,000 Each in Case of
conviction-Packer Says
1t Is Fake

Ny OPEKA, Kas., April 16.-Charged
with defrauding the government
Il by violations of the internal reve-
nue. laws, an indictment was formally
returned against the Cudahy Packing
company of Kansas City in the United
States district court here today. Inc
company is indicted on 695 counts. The
officers of the company Will be sum-
moned to appear in court and defend
the charges outlined in the indict-
ment.
The grand jury was dismissed follow
ing the return of the indictment.
Wholesale violations of the internal
revenue laws is charged. The charge
is that the company has defrauded the
government out of over $4,000 in reve-
nues on oleomargarine. The maximum
fine on each OF the 695 counts is $1,000,
making a total for which the company
is liable in the event of conviction of
nearly 100000.
The revenue law provides that each
pound of uncolored oleomargarine must
bear a revenue stamp of a quarter or u
cent, but that each pound to which coll
oring matter has been added to give t
the appearance of butter a 10-cent
revenue stamp must be attached.
Defrauded Government in Large Sur,s
1t is charged in the indictments that
the Cudahy company has sold the col
ored product under the quarter of
cent tax, and consequently has Defend
ed the government out of large sums
Inspectors have been working upon
the case several months and have Sc
cured samples sold in towns and cities
from New York to Seattle and from
Duluth to Jacksonville. These were
forwarded to the government chemist,
WI
tained coloring matter, but this evil
dence was turned over to District At
torney Bone at Topeka, who submitted
the facts to the grand jury.
Every sample now in the hands Of
the government experts bears the iden-
tification mark of the inspector, who
purchased it, as we'll as the analysis
which shows that it contains coloring
matter.
| 1t is claimed by the government Off
cials that the Cudahy company has
succeeded in monopolizing the oleo-
margarine market by selling the col
ored product and paying the tax on the
basis of uncolored, thereby saving a
difference of 9A cents pound. This
means, it is claimed, that they were
able to undersell other manufacturers
and control the market.
Civil Action, Too, Proposed
While this criminal action will be
prosecuted, District Attorney Bone
says 1t does not end the matter. He
will bring a civil action against the
company to have the plant and machin-
cry used in the manufacture of oleo-
margarine confiscated. This proceeding
will also be commenced in the federal
court. The oleomargarine manufacture
ing plant is connected with the Cudahy
Packing establishment in Kansas City,
KaS.
H. J. Bone, United States District At
torney, said to a representative of the
Associated Press this afternoon:
'The Cudahy cases have been COM
pleted by the jury and indictments
found for violating the United States
revenue laws on sos counts. The in
dictments will be reported soon after
court convenes this afternoon"