Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1910-03-25
CHICAGO IS STIRRED
BY BUTTER|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 beef
consuming $4,000 pounds a day of col.
ored ol~eomargarine in the belief that
theF were eating butter, the govern
ment has lost $o,475, 900 in revenue in
hVe years and INSCRIPTIONS dealers
nave Melted a total Illicit profit close
TO 100000 0 in that period. These
were a few of the startling facts
brought to light by the Federal inves
tlgatlon into the activities OF butterine
moonshlners' and which may involve
men high in business Inc 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
mad been opened for control Of a fleet
OF 'tugboats board which it was plan
ned this spring and summer to color
white "oleo' illicitly far from the pos.
slble Interference of Federal revenue
officers.
Such is the colossal fraud situation
which the Fedora grand jury has been
asked by Judge kenesaw M. Lands tc
investigate and which attaches of the
district attorneys office are said to de
clare Will result in sending a score OF
men to Federal prisons.
The revenue officers are declared tc
mold evidence of violations, by both
manufacturers and dealers, of three
regulations in the oleomargarine law
as follows:
Eva Sinr 1f f1o 1 ,o, ,o,,>s
TAX Tor colOring o~leomargarine.
2. Fraudulent use of inspection la
bells.
8. P~urveying Renovated" or pro
cess butter without so marking it.
For violation of the first mentioned
regulation, the penalty is forfeiture OF
factory, apparatus, all oleomargarine
II raw material found in the factory
and a fine of not less than $500 OF
more than $4,000. and Imprisonment
OF not less han six months or more
than three years.. For violation of the
second regulation the penalty is a fine
OF $1,000 and imprisonment for moi
more than two years. For violation O
the third the penalty is a fine of moi
less than $50 nor more than $500 and
imprisonment Of from n to 81,
months. The Federal officers have
drawn a net of evidence so closely
ABOUT the suspected men that it is de
clared it will be difficult for them tc
dVanc an adequate defense.
After obtaining competent afidavits
from dealers ana cUlfSurIIers. 1EaI 1norS
than 95 per cent of the "oleo" used is
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 office:
September, 1909
Pounds of white "oleo' sold. i, 800, ooC
Pounds of colored "oleo' sold.. 0.O0t
November, 1909
Pounds of white "oleo" sold. 1, 400 ,00c
Pounds Of colored "oleo" sold. 10000
January, 1910
Pounds of white "oleo" sold. 1900, 00l
Pounds of .c~olored ''oleo" sold. 100000
Obviously at variance with actual
trade conditions in ole~omargarine, 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
terine are alleged by revenue officers
to have supplied "moonshiners" with
coloring matter and government in
spection labels.