New-York tribune., 1920-04-16
3 Arrested as
PrOfiteers in
Danish Butter
Resale of 672,OOO Pounds
Here Involved in Charge
of Excess Gain at 50
Cents as Wholesale Price
One Awaits Grand Jurv
Other Actions Expected
Soon to End Soaring
of Rates in Commodity

lhree men were arrested yesterday
by the Flying Squadron" for alleged
violations OF the Lever act in charg-
ing an unfair price for Danish butter
They were srraigned before United
States Commissioner Hitchcock and re-
lea ased in $1,000 bail each.
Nicholas Eschenbrenner, vice-presi-
dent of Lewis, Mears & Co., wholesale
butter and egg merchants, of Boston
and general manager of the company $
branch Office at 127 Reade Street. was
arrested about noon as he was leaving
the New York Mercantile Exchanges
Harrison Street. He wa:ved exami-
nation and awaits the action of the
grand jury.
The other men, Harry Walton, presi-
dent of Hunter, Walton & Co., 164
and 1866 Chambers Street, and Frank
D: Shea, a member of the same firm,
will be examined on April %. j. j.
Price, the Federal agent who made the
arrests, charges that Eschenbrenner in
disposing of Danish butter on April
l3 sold 1T at 50 cents pound
Books of Firm Seized
Shortly after this arrest the firm s
books were seized and brought to the
office of Assistant United States At
torney Joseph Mulqueen jr., where
they were examined.
Mulqueen said that during February,
Eschen brenner negotiated the purchase
of $4,000 pounds of Danish butter
for $375,840 and that he has informa-
tion to show that it was sold for $425,-
600, giving the firm a profit of SCI ,160
Mr.. Mulqueen cited an order from
the Boston house to the New York
branch to sell in this market 672, 900
pounds of butter which had been
to New England. The price of the but
ter at the time of this order is~alleged
to have been SO cents.
The price of the butter, which had
never been near New England, was
then advanced to from 61 to 50 cents a
pound, and is said to have been sold in
the New York market at that price
Most of it is said to have been sold at
the piers, so that overhead charges
need not have been considered.
William G. Bushell, attorney for
ksohenbrenner, issued a'statement a last
night that no effort had been made in
this transaction to make a large or
unusual profit and if the butter had
not been brought into this market New
York would have no butter to-day
He said the butter, while in transit,
was offered for sale and some sold at
81 cents a pound Wholesale The en-
tire consignment, he said was sold
upon the arrival OF the steamer April 1.
"The Transaction he said. "involved
the outlay of about 100000 and left
a gross profit of about $4,000 to the
company The net profit on the trans
action Will be probably less than per
cent"
While waiting for Eschenbrenner to
appear before the Assistant United
States Attorney, Mr. Price, with Fed
eral agent c. R. Walsh, went to the
office Of Hunter, Walton & Co., at 164
and 166 Chambers Street. and arrested
Frank D. Shea. Harry Walton, presi-
dent Of the concern, was absent at the
time, but he presented himself before
Mr.. Mulqueen later in the afternoon
Both men are charged with making
an unfair profit on Danish butter.
Their books have not been examined
yet, but the firm is said to have sold
500, 900 pounds of Danish butter at 6S
cents pound, giving 10 cents a pound
profit.
A. W. Riley, head of the "Flying
Squadron" and in charge of the gov
ernment's investiga gations of protiteer-
ing, said yesterday that these arrests
were only the beginning, and that the
main boosters in the butter market
WOuId he aDDreh q 0Ied II, , dow or two