| Reproduction of CPC/Bestfoods complaint, as filed.
Text highlighted in red was highlighted on the court
documents. Substitute Order Of Contempt, Exhibit A Welcome to skippy.com-home of Percy Crosby's famous cartoon character Skip.. Page 1 of 2 .
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| IRS HARASSMENT
(1934-1950) Dale Crosby, secretary of Skippy, Inc. and a stockholder, advised Lord, Day & Lord in April 1934 that the IRS was asking a lot of questions about Skippy's business. By 1936 she reported that the IRS was "swarming like hornets" and wanted records for an audit. Skippy's® tax lawyer suspected the audit was due to Percy Crosby's political crusade and beliefs.In 1937 Crosby drew a political cartoon, entitled "Paying the Price", showing the slain figure of Justice lying on the ground with a giant boot on her chest, captioned "One Man Rule". |
![]() © 1937, 1999 Percy Crosby - "One Man Rule" |
| Crosby sent copies of the cartoon to the Supreme
Court and all members of Congress, which depicted
Roosevelt's attempt to "pack the Supreme Court"
after its unanimous decision against the NRA. Roosevelt
was reputedly furious, and already sensitive to public
outrage at his "court packing" plan. The IRS
claimed Skippy, Inc. was incorporated by Percy Crosby to
evade taxes and filed liens for $47,000, which was
published nationally and reported during congressional
hearings on tax evasion. Crosby fought back with
prominent newspaper ads denying liability, and Lord, Day
& Lord filed protest briefs, to no avail. He was
forced to discontinue his publications under "The
Freedom Press", which he founded in 1932, and had to
sell valuable real estate at distress prices to pay the
IRS debt and penalty fines. In 1939 his wife filed for
divorce and took custody of the four young Crosby
children. The bitter divorce proceedings were publicized
to portray the creator of Skippy® as selfish and cruel.
The children never saw their father again. Crosby moved
to New York City, began drinking heavily, and was
hospitalized in 1940 for severe stress. He married
Carolyn Soper, a hospital dietitician, who, unlike his
former wife, Dale Crosby, had little education or
business experience. Crosby's friends and colleagues saw
her as an opportunist. Crosby fired Lord, Day &
Lord for "heinous conduct" in 1942 and
threatened to sue the firm, which had also done all tax
work. |
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| In September,1946 the IRS froze all assets of Percy
Crosby and Skippy, Inc., after Hearst cancelled the
Skippy® contract. The IRS claimed Crosby and Skippy,
Inc. owed another $43,000 in back taxes and penalties. Due to a pending lawsuit from Best Foods, this portion of the story has been temporarily deleted. |
| ®©1999 Skippy, Inc. Joan
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Exhibit A Index - The Next Page Of The Story As Told By Exhibit A |