Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1915-06-24
plators of Law Have Been
Swindling Government in
Stamp and Special Taxes since
f9o2.
|s0LD C0L0RED PRODUCT
|ch of This Believed to Have
Reached Consumer AS Butter
5000 Frauds Detected in
Two Years-Many COnvic-
ions, More Action Ahead.

pshington, June 20.-How violators Of
oleomargarine law have dcfrauded
fedora government out of at least
Il COZ due i'm stamp and special taxes
revealed tonight by Secretary Nc
b in statement based upon a pro-
harry report on a sweeping investiga
conducted by Commissioner Osborn
he internal revenue bureau.
buds committed as long ago as 1902,
ediately after the enactment of the
have been uncovered by the commits
r He began his inquiry somc months
hnd from time to time news OF prose-
ms has reached the public, but until
Eht no inkling had been given of
wide scope of the investigation or
is extra ordinary results. Unpaid
aggregating $751;, 900 have been re-
red and deposited In the treasury,
the prospect of further very large
rtions." Forty-two violators OF the
have been convicted since the first
hnuary and % OF these have been
rrison sentences. Fines aggregat-
$4,000 have been assessed. IN addi-
to the recOveries actually made,
ne announcement declares that while
ulent practices of this sor. probably
been checked the Investigation will
hue and every law breaker brought
hstice.''
Asst QUANTITIES INVOLVED.
announcement shows that since 1902
than 200,00o,cC0 pounds of colored
Margarine have been manufactured
raudulently sold as uncolored oleo-
arine
is believed" II says. that a great
lrtion Of this product reached con-
rs as butter.
proximately lS5.CO0,00O pounds Of this
.0o0 pounds were sold by oleomar-
manufacturers to dealers as I'M
I'D oleomargarine and then in many
sold to the ultimate consumer as
+, The remaining 1900, 900 pounds
made by butter manufacturers and
as butter without the payment of
AK
law imposes tax of 10 cents per
on colored oleomargarlne and one
Pr of cent per pound on the I'M
d product. In perpetra ting these
the oleomargarine manuft cturers
paid only the one-nuarter cent when
should have paid 10 cents: or In the
of butter manufacturers who sold
roduct rs butter no tax was paid
the government should have re-
10 cents per pound"
5000 FRAUDS DETECTED.
announcement says that 5000
s nave been detected in two wears.
hat as a consequence of the ac-
of the internal revenue bureau
by the department of justice re-
under the oleOmargarine law In
and 1915 have been "a per cent.
total collections since 1902. The
collections from 1902 to 1913 were
6e5, while in 1914 and 1915 49,
0 was collected
pile there was total of approx
y S27,O00.000 in taxes due the
nment from the larger offenders,
ues the announcement, only s4,-
was within the assessahle Pc
Pf two years fixed by the statute
emaining taxes being unassess-
and recoverable only by suit.
Will be taken 10 recover this
ce. From one manufactures
it is believed that the total coll
rs will ultimately reach S1,15O.-
These recOveries represent the
G of plants assessment of cvaded
aud In
ty
hong the larger cases are the fol-
3: d
company, whose president and
'er pleaded guilty and We're SEN
to one year and one day in the
hilary and to pay a fine of 5000
and whose plant was seized, has
ssessed $7aS,696
Their concern, six If whose Off
and employees pleaded guilty and
fined an aggregate Of $500 ana
plant was seized, has been assessed
1t. Louis "a persons were convicted,
given prison sentences and fined
of slSs,0oO.
company, whose president treas
nd secretary are under indictment
rges OF oleomargar ine frauds, and
plant was seized, has been assess
523, for evaded taxes
Their concern, whose president and
ry-treasurer likewise have been
d, and whose plant was seized, has
ssessed $193.4S
ompany, five Of whose officers or
are under indictment, and whose
vas seized and sold by the govern
has been assessed S2,090,027."