The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1909-04-22

Topeka, Kan, apr lI.-lndlctmen'S
were returned here yesterday by the
federal grand jury against the Cudahy
Packing Company of Kansas City,
Kan, on COS counts for defrauding the
government out of more than $125,0OO
by violations of the internal revenue
laws on oleomargarine. The mini
mum fine on each count is $1,000.
The revenue law provides that each
pound of uncolored oleomargarine
must bear a revenue stamp of a quar-.
ter of a cent, but that on each pound
to which colored matter has been
added to give 1t the appearance of
butter, a ten-cent revenue stamp must
be attached
II is charged in the indictments that
the Cudahy Company has sold the col
ored product under the quarter of
cent tax and consequently has de.
irauded the government out of large
sums.
Work on Case for Months.
Inspectors have been working ON
the case for several months and have
secured samples sold in towns and
cities from New York to Seattle and
from Duluth to Jacksonville These
were forwarded to the government
chemist who reported that every sam.
pie contained coloring matter, and
this evidence was turned over to Dis.
trict Attorney H. j. Bone at Topeka,
who submitted the facts to the grand
jury.
Every sample now in the hands OF
the government experts bears the
identification mark of the inspector
who purchased 1t as well as the analy.
sis which shows that 1t contains color
ing matter.
Said to Have Caused Monopoly.
II is claimed by the government Of.
| ficials 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, there being "A
difference of 9A cents per pound. BY
this means, 1t is claimed, they were
enabled to undersell other manufac.
turers and control the market
| While this criminal action, which
provides for a minimum fine of nearly
| $750,000, will be prosecuted, District
Attorney Bone says IL does not end
the matter. He will bring a civil ac.
tion against the company to have the
plant and machinery used in the man
ufacture of oleomargarine confiscated
cudahy Makes Statement.
Omaha, Neb., Apr. 17.-E. A. Cuda,
hy, vice-president and general mana
ger OF the Cudahy Packing Company
has given the following statement:
"The dispute between the govern
ment and ourselves is simply a ques
tion of chemical analysis. For some
time past we have been aware that
the government officials have been
taking samples of our butterine all
over the country, wherever the goods
have been on sale These samples
they claim, shown the infinitesimal us,
of artificial coloring matter. We have
had similar samples submitted to tn,
leading chemical analysts of tn,
United States and they have assured
us that the butterine was not colored
Every man in our employ In our Kan
sas City butterlne factory-the onl
place where we make butterine-hay
ing a knowledge of the manufactur,
of the goods has made affidavit tha
no coloring matter has been used. Al
the goods were sold by us as uncol
ored goods, and by our customers I,
the trade as such, there has been n,
attempt on our part to defraud tn,
government OF revenue.
Say Amount May Be $125,ooo.
Washington, Apr. 17.-Internal rev
enue officials said government agent
have examined a very large numbe
of samples of oleomargarine In man
parts OF the country sold by tn
Cudahy Company, and that while
: would not be expedient to estimat
, the amount of taxes involved In tn
alleged frauds, II is known that tn
officials believe 1t will be In excess O
$125,O00, and possibly a much large