Evening star., 1943-02-18
Brothers Deny
Violating 0PA
MeatCei|ing
KiIsheimers Freed
On 81, 500 Bond;
Hearing Saturday

Ferdinand and Bernard Kill
sheimer, operators of F. Kilsheimer
Bros, 1910 and 1900 Bladensburg
road NE, pleaded not guilty today
before United States Commissioner
Needham C. Turnage on charges of
violating Once Of Price Administra-
ton regulations in the sale Of un-
graded beef above maximum ceiling
prices.
The arraignment was continued
until 10 am. Saturday because OPA
attorneys were unable to attend to-
day. The two men were then re-
leased on $4,000 bond each, their
bond having been reduced from
5000.
The brothers were arrested late
yesterday in connection with what
an OPA spokesman and Assistant
Prosecutor Bernard Margolius de-
scribed as the first District crack
down on an alleged widespread black
market in the sale OF meat.
VfAI IVA al kolkNoy WIN ObGdAACA
warrant for the arrest of the two
men, said that the brothers are
charged with delivering to a local
retailer on February 2 large
amount" of ungraded beef above
the maximum ceiling prices as pro-
vided by OPA regulations.
Investigated by OPA.
The charge was drawn up against
them on information received from
District OPA investigators who have
conducted an extensive survey of the
operations of meat dealers in the
Nations Capital for several weeks.
The Investigation, which gained
impetus with mass questioning of
local meat retailers January 20, was
conducted under the direction OF
Clifford r. Snider. acting chief at
torney for the District OPA, and
Henry Brickman. acting chief en-
forcement attorney for the same
group.
Mr.. Margolius said that although
the warrant for the brothers ar
rest charged only the specific vio-
lation OF February 2. an investiga-
ton OF the Arm revealed it has
committed similar violations in
volving the sale and delivery ito
many retailers" of ungraded beef
and other meats at prices sub
stantially" above those set by OPA.
The overcharges involved in the
charge against the brothers, Mr..
Margolius said, ranged from to
8a cents per pound.
Counsel Denies Charges.
At the same time, H. M. Welch,
attorney for the brothers, told The
Star his clients ''have never par
ticipsted knowingly in any OPA
violation and have never partici-
pated in the so-called black mar
ket' practices in the sale of meat"
Mr.. Welch added that his clients
held one of three small animal
slaughter house licenses extant In
the city. A substantial part Of his
clients business, he said, was with
kosher meat markets. They kill
about 900 calves q week and an "oc-
casionalp full grown animal. There
was an understanding. he said, that
this could be done under the license.
His clients were not obliged to
grade their meat until the price act
went into effect, he said, adding that
they have been grading it since.
The meat is District, but not United
States inspected, he said.
The OPA investigator said that
the alleged blacket market has in
creased the cost Of meat for prac-
tically every consumer in the Dis
trict.
At the January 20 mass ques-
tioning, it was said, retailers were
asked to produce their invoices and
check OF these records, an OPA
spokesman said, revealed many re-
tailers we're paying prices in excess
of ceiling prices for wholesale meats.
Some firms, it was said, failed to
grade their beef in accordance with
OPA regulations in order to sell
cheaper grades at higher grade price
ceilings. 1t was explained that the
five grades of beef-choice- IA,
good-A. commercially, utility-C
and cutter-and d-eanner-range in
price from SIS to $3.50 per hun
dredweight.