The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-24
BAD BUTTER PICKED
FOR NAVY'S FIGHTERS
state Inquiry Brings Out Big
Scandal at Mercantile
Exchange.
THE FIRM Is SUSPENDED

The story OF the suspension for one year
or produce commission firm as a MEM
Der OF the New York Mercantile Exchange
and the discharge OF an inspector OF the
exchange In connection with the fraudu-
lent Inspection OF butter sold by the firm
to Uncle Sam for use in the navy was
brought out yesterday by Deputy At
torney General Kennedy at the continue q
tion OF the hearing before former A.
torney-General O'Malley. as referee, in
proceedings to annu the charters Of GER
tain corporation II they are found guilty
or maintaining a monopoly to manipulate
the prices of butter and eggs. The in
spector later went into business for him
self and IL now n member of the exchange.
The documentary evidence. amplihed in
part by the testimony OF +. q. Henry,
superintendent OF the Mercantile Ex-
change. showed that on May 10 last a
Government contract was awarded 30 the
firm OF Henneberger Herold for 10000
pounds Of butter at $3.50 per cwt.. which
was delivered to the supply steamer Cell
tie at the Brooklyn navy yard on May %.
The butter was to have been examined by
Inspector Fryhofrer Of the Department OF
Agriculture, but he was out Of town and
the paymaster agreed to accept the butter
on condition that Henneberger & Herold
presented the certiiication OF the New
York Mercantile Exchange that the but
ter had been Inspected and properly
stamped by one of its inspectors The
consignment was accepted hut a few
days before sailing the discovery wa
made that something was wrong and In
spector Fryhofrer on Inspection found
that only 10 per cent. of the $50 tubs
contained butter that was extra cream
cry" and would score 81. The balance
Mas of a grade would not score over SO.
Tho paymaster was unable TO get from
Henneberger Herold certificates from
the Mercantile Exchange although sew
eral demands were made but the firm
replaced the below grade stock with the
kind OF butter contracted for and the Gel
tic sailed for Vera Cruz.
In the meantime one of the unsuccessful
bidders called the attention OF the ex-
change to the facts
]. II. Barrett, the exchanges official In
spector. expla ned that when he had lum-
bago he got another person to do the
stamping for him. He was sure. he said
that he never let the stamp get out OF his
possession and he didn't know how AT
least 400 tubs bore the stamp of the
exchange.
The exchange records showed that Bar
ret was dismissed on July is for negli-
gonce and carelessness.
IF the stamp had not bee nut OF his
possession" the report said. The butter
could not have been stamped
f. q. Urner Of the Urner Barry Com
pany. publishers OF the Producers Prtc,
Current, which prints wholesale prices
that are accepted in the trade as official
testified that no member OF his concern
Is interested in any cold storage or poul'
try business.
The hearing was adjourned until next
Thursday to permit Deputy Attorney
General Kennedy to 20 to Chicago. wher,
he expects to get much Information OF
value in the Investigation from shippers
from all parts OF the country who are no"
In convention.