Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1910-03-23
CHICAGO IS STIRRED
BY BUITER|NE FRAUDS
Federal Grand Jury Asked by Judge
X. M. Lands to Make an
Investigation.
PENALTIES FOR VIOLATED LAWS
Wholesale Operations of ''Moon-
sinners" Have Been Very Profit
able in Past Few Years.

The people OF Chicago have been
consuming $4,000 pounds a day OF col.
bred oleomargarine in the belief that
they were eating butter. the govern.
ment has lost $5,475,OOO in revenue in
live years and sunscrupulous dealers
have netted a total illicit profit close
to $10.00O.O0O in that period. These
were a few of the startling facts
brought to light by the Federal inves-
tigation into the activities of butterine
'moonshiners" and which may involve
men high in business and public life
In Chicago and Washington before it
is completed
The wholesale operations Of the
'moonshiners" had become SO success
full and profitable that negotiations
had been opened for control of a fleet
OF tugboats aboard which 1t was plan
ned this spring and summer to color
white ''oleo" illicitly far from the pos
| sible interference of Federal revenue
officers
Such Is the colossal fraud situation
which the Federal grand jury has been
asked by Judge Kenesaw NJ. Lands to
investigate and which attaches of the
district attorneys office are said to de.
clare will result in sending score OF
men to Federal prisons.
The revenue officers are declared to
hold evidence of violations. by both
manufacturers and dealers, of three
regulations in the oleomargarine law.
as follows:
!. Evasion of the Decent pound
tax for coloring oleomargarine.
2. Fraudulent use of inspection la
bells. \
g. Purveying "renovatedr or pro
cess" butter without so marking it.
For violation of the first mentioned
regulation, the penalty is forfeiture of
factory. apparatus, all oleomargarine
and raw material found in the factory
and fine of not less than $500 or
more than $4,000. and Imprisonment
of not less than six months OF more
than three years. For violation of the
second regulation the penalty is fine
Of $1,000 and Imprisonment for not
more than two years. For violation OF
the third the penalty Is fine of not
less than $50 nor more than $500 and
imprisonment of from one to six
months. The Federal officers have
drawn net of evidence 80 closely
about the suspected men that 1t is de-
clared 1t will be difficult for thera to
| advance an adequate defense.
After obtaining competent affidavits
from dealers and consumers, that more
than So per cent of the 'oleo'' used ia
colored. the. revenue officers have COM
piled the following tables of figures
| from the sworn statements OF manu-
facturers listed at the revenue collect
| or's etice:
September. 1909
Pounds Of white "oleo" sold. Il, 500, 900
Pounds OF colored ''oleo" Sold. 10000
November. 1909
Pounds OF colored "oleo" Sold. 10000
| Pounds of white .oleo" sold i, GOO, 900
Pounds OF colored "oleo" sold.. 10000
| Obviously at variance with actual
trade conditions In oleomargarine, as
evidenced by the exhaustive investiga.
ton made by revenue officers, these
figures will be used to clinch the gov.
eminent lawyers charges of wholesale
fraud. When considered in the light
of statements made by revenue officers
and assistant district attorneys, who
declare that nearly all of the white
"oleo" should have paid the 10 cents a
pound tax, the story of fraud told by
the figures is held to be striking.
Four leading manufacturers of but
sterine are alleged by revenue officers
to have supplied "moonshiners" with
coloring matter and government In
spection labels.