New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-04-20
$50,40O Profit
In Sugar Deal
Causes Arrest
Boston Dealer Is Reported
10 Have Completed Trans
action in Two Weeks and
Before the Cargo Arrived
Potato Man Is Accused
Warnings Bring Threat Of
+ a IN II e From Dealer;
Overall Price Guarded

Two men were arrested yesterday as
result of the efforts of the Depart
ment of Justices Flying squadron" to
control speculation in food. The pris
oners are E. R. Sherburne, Of 113 State
Street. Boston, and John McElroy, of
1856 Eleventh Avenue. Sherburne is
charged With taking an undue profit in
sugar, an.s McElroy in potatoes. Each
was released in $1,000 bail, Sherburne
to await further examination and Nc
Elroy for the action of the grand jury.
Sherburne was arrested on his ar
rival in New York. He is alleged to
have made S5O,4OO in two weeks on a
cargo of sugar that had not reached an
American port According to Joseph F.
Mulqueen jr., Assistant United States
Attorney, Sherburne bought the 100000
pounds of sugar from the Sugar Prod
ucts Company, of 16 Exchange Place, at
~ cents a pound, for S158,400, and
sold it at 21% cents to Joseph Reiter,
of 1877 Atlantic Avenue, Brooklyn, for
$20S,000 Mr.. Mulqueen said the law
limited the wholesale profit on sugar
to cent pound.
Threaten Potato Famine
McElroy, a potato dealer, is said to
be one Of those who made the rail
road strike an excuse to advance
prices, selling for 1888 a hundred
$685.. Mr.. Mulqueen had many potato
dealers in his office during the day
and said that in response to his warn
ings concerning prices they threatened
to refuse shipments and bring about
potato famine.
They offered to abide by any regu-
lation the government might make
concerning profits, but Mr.. Mulqueen
told them the government wasn't max
ing that kind of regulations, insist
ing merely that no abnormal profits
be made
Agents were sent by United States
Commi ssioner Hitchcock to libel 1000
pounds of sugar which Herman To-
back, of II Jackson Avenue, The
Bronx, is said to have obtained by
fraud, representing that the sugar was
for syrup manufacturers.
Although a placard was posted yes
terday in the window of the store
where he has the sugar identifying
Toback as an extract and syrup man
ufacturer, it is alleged he is not in /
that business, but has been an adj
vertising agent for refinery.
Federal detective who tried to
buy some of the sugar reported that
Tohack refused 1914 cents pound,
saying he could get a better price.
Armin w. Riley, head of the Flying
squadron" declared if Toback had a
license to deal in sugar he would try
to have it revoked or to prosecute him
under the Lever act.
Guard Price of Overalls
Mr.. Riley said members of the squad
ron had familiarized themselves with
the overall business, and would be pre-
pared to deal with any sudden advance
in price that might follow a more gem
eral demand for the garments. Agents
Of the Department of Justice in every
section Of the country have been
warned to be on the alert for such an
increase in overall prices.
Mr.. Riley has the names of sixty
butchers who have expressed willing
ness to handle some Of the 1000, 600
pounds of army meat which was re-
leased last week at l0h cents pound.
Charles Grlsmcr, a Brooklyn, dealer.
who is president Of the Master Butch
ers OF America, told Leroy w. Ross,
United States At Dcney in Rrooklyn'
that about 5000 rc,ail butchers in that
borough and other parts of Long Is nd II
had agreed to hatl!e the meat at a Il
moderate profit. once quarter of the /
meat is in a warehouse in BroolSlvn Il
and another quarter will be tatsl there
to- day.
me cases against the representatives
81 the Armour, Swift and Wilson mack
ing houses, who were arrested last
week IN Brooklyn, will be taken IN
TO morrow by the grand jury there
u llldictments are returned MIR. Ross
hlehas TO prosecute with the idea Of
having prison sentences imposed