OLEOMARGARINE. 825 



arrest occurred nearly three weeks ago at the Ceylon and Japan Tea Company's place, 

 700 West Forty-seventh street. 



REVENUE AGENT AT WORK. 



Since Rooney's arrest several of the cleverest special agents in the employ of the 

 Government have been further investigating in the belief that certain manufacturers 

 of oleomargarine were back of Rooney. It is also believed that had the scheme 

 proved safe the fraudulent dealings would have been increased to a point limited only 

 by the ability to get customers. 



Last November the Agricultural Department learned that large quantities of sus- 

 picious butter were being reshipped into eastern New York, and W. H. Butcher, of Troy, 

 was detailed to look the matter up. On November 27 a consignment of 623 tubs was 

 found in J. B. Wattles' s store in Buffalo. Samples were taken and the consignment 

 allowed to go. Agents followed it to Chicago, where the Wabash officials were told 

 that the shipment here was a mistake, and that the stuff should have been sent to 

 Liverpool. It was reshipped and the Government agents seized it in Detroit. This 

 lot is said to have been sold by Edward Marhoffer, of the Elgin Produce Company, 

 6242 Halsted street. 0. S. Martin, special agent of the internal-revenue department 

 for Indiana, was sent to Chicago, and found that large quantities of oleomargarine 

 had been shipped to John Schmitz, of Milwaukee. The latter told the agent that a 

 man representing the Aurora Produce Company had called to see him and had said 

 that his concern had a lot of high-grade butter which they could sell at less than pre- 

 vailing market prices. Schmitz had at various times purchased several hundred dol- 

 lars' worth from the concern in the belief that he was buying good creamery butter. 



SCHMITZ PAYS HIS LICENSE. 



Schmitz was a witness before the commissioner and has since paid the Govern- 

 ment $480 which is required for a wholesale oleomargarine license. The fact that he 

 did not know he was selling oleomargarine did not cut any figure with his being 

 liable for the license money. The department here has a list of forty or fifty dealers 

 who will have to pay $48 for a retail license for having bought "prime butter" of 

 the concern. 



Agent Martin went to Aurora after seeing Schmitz and began looking for the 

 Aurora Produce Company. He learned that a man named Rooney had rented a 

 box at the post-office with instructions to have placed in it all his mail and that 

 addressed to the Aurora Produce Company. Later he had given up the box and 

 left instructions to have his mail forwarded to 196 LaSalle street. At this place 

 Attorney Maurice Langhouse told the officer that Rooney had asked him to permit 

 his mail to come there, and had paid him $10. Every day a boy came in and, plac- 

 ing the mail in another envelope, forwarded it to Rooney, at 700 West Forty-seventh 

 street. 



The agent's next move was to rent a room opposite the tea company's store. He 

 soon discovered that wagons from Braun & Fitts, oleomargarine manufacturers, 

 made almost daily deliveries of oleomargarine at the store. There the stamps would 

 be removed and Expressman J. W. Foley would take the stuff to various freight 

 offices for shipment. 



SEIZURES AND ARRESTS. 



When the evidence was conclusive seizures were made and a warrant sworn out 

 for Rooney's arrest. It was learned that his brother, Elmer K. Rooney, was in the 

 deal, and a telegram was sent to Joliet, where he happened to be selling "butter," 

 to cause his arrest. Some one gave him timely warning and he fled. It is said that 

 Edward Marhoffer, George E. Brannen, and a man named Casey have also disap- 

 peared. 



In connection with Rooney, the officers arrested Patrick F. Butler, who worked at 

 the Forty-seventh street place. His arrest was due to the fact that all checks in 

 payment for the oleomargarine were made out to Walter F. Butler, and a bank clerk 

 identified Patrick F. Butler as the man who drew the money on them. The evi- 

 dence was insufficient to connect Butler with the fraud and he was discharged. 



The carload of oleomargarine seized at Detroit is valued at $5,000, and would indi- 

 cate that the fraudulent dealings were even more extensive than appears from the 

 evidence attained thus far. It is said that the local department is preparing to make 

 other arrests in a few days, although the warrants have not been sworn out. W. J. 

 Moxley, who sold Rooney small amounts of oleomargarine; John Dadie, and former 

 Mayor John P. Hopkins went on Rooney's bond. Officers who have investigated 



