Pa. files multiple charges, against Scheps
SCRANTON Attorney General
Leßoy S. Zimmerman this week
charged the owner of Scheps
Cheese Co. with bilking 321 Penn
sylvania dairy farmers, who were
regular suppliers to a Wyoming
County cheesemaking plant, out of
$3.6 million worth of milk.
The alleged scam, said Zim
merman, also resulted in at least
40 of the 321 farmers being forced
to pay higher interest rates on
mortgages or personal loans in
order to save their homes after
Benedict Scheps allegedly failed to
forward their loan payments.
Zimmerman said his Bureau of
Criminal Investigation was filing
charges of writing bad checks,
theft, theft by deception, theft by
failure to make required
disposition of funds received and
deceptive business practices
against Scheps.
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Similar charges also were filed
against Scheps Cheese Co. of
Haledon, N.J., of which Scheps
was the president, and Bradford
County Farms, Inc., also con
trolled by Scheps and set up to
acquire milk in order to produce
cheese closer to Pennsylvania milk
suppliers.
Both companies since July, 1983
have been in bankruptcy
proceedings.
Aside from the bad-checks and
theft charges, Zimmerman said
Scheps will face charges that he
failed to remit withheld personal
income taxes.
Zimmerman said that Bradford
County Farms, Inc., while buying
milk from the 321 farmers, worked
out a “milk assignment
agreement” with 40 of them, under
which the firm was to make direct
loan payments on behalf of the
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1% Miles West of Ephrata
farmers to the federal Farmers
Home Administration.
The agency never received those
direct payments, totalling
$200,000; it found the farmers in
arrears by at least three months
and threatened to foreclose on
their mortgages or take other legal
action for failure to make timely
payments on the loans.
Pa. red meat decreases
HARRISBURG Penn- percent. Total head slaughtered
sylvania’s commercial red meat was 83,600, down three percent,
production dressed weight basis a °d liveweight averaged 1,106
during August totaled 76.3 million pounds, a decrease of 21 pounds,
pounds, down 13 percent from Veal slaughter was 4.5 million
August 1983, according to the Pounds liveweight, down three
Pennsylvania Crop and Livestock Percent. Calf slaughter, at 29,900
Reporting Service. head, was up four percent, but the
Beef slaughter, at 92.4 million average liveweight decreased 11
pounds liveweight, was down five pounds to 152 pounds.
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Lancaster Farming, Saturday, September 29,1984—A19
In many cases, the farmers were
forced to pay higher interest rates
on their outstanding loans in order
to save their homes, Zimmerman
said.
The Attorney General last
August issued an opinion
authorizing the state Milk
Marketing Board to begin paying
farmers their share of a $2.6
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million appropriation set up to help
offset financial losses suffered by
the farmers.
That money, backed up by
Zimmerman’s legal opinion on the
method by which it could be
distributed, provided the farmers
with a reimbursement of slightly
more than 60 percent of their costs
of supplying unpaid milk to the
Scheps operation.
Hog slaughter at 33.7 million
pounds live weight, was down 24
percent from a year earlier. Total
head slaughtered was 140,500,
down 26 percent, while average
liveweight increased rune pounds
to 240 pounds. Lamb and mutton
slaughter was 1.7 million pounds
liveweight, up 43 percent. The
number slaughtered was 17,200, up
38 percent and the average
liveweight increased three pounds
to 100 pounds.
Inspection
of swine
extended
WASHINGTON, D.C.
The U.S. Department
of Agriculture is
proposing to extend
streamlined inspection
procedures to all swine
slaughtering plants.
If adopted, the
procedures would allow
plants to increase their
production rate because
USDA inspectors would
need less time to
examine each carcass,
Houston said.
“This proposal is
based on a rule im
plemented Aug. 4, 1982,
which increased
productivity by 14.6
percent and reduced
overtime costs 50
percent in larger hog
slaughter plants while
maintaining consumer
protection,” Houston
said.
That rule affected
only larger plants
requiring three or more
inspectors.
The agency has since
studied productivity in
smaller plants to
determine their in
spection workload.
Houston said the results
confirmed that the
streamlined procedures
would lead to savings
across the entire in
dustry.
“The proposal could
increase slaughter rates
and improve inspection
productivity in about 700
swine plants by allowing
plants more flexibility
in arranging inspection
operations to cut down
the distance between
inspection stations,”
Houston said.
USDA tested the
procedures thoroughly
before using them in the
larger, high-volume,
hog slaughter plants
and found them equally
as effective as older and
more costly procedures.
Comments on the
proposal should be sent
in duplicate by Nov. 13
to: Regulation Office,
attention- Annie John
son, hearing clerk, Food
safety and Inspection
Service, room 2637-S,
Washington D.C. 20250.