126 THIRTY-FOURTH ANNUAL REPORT OF THE 



claim of the oleomargarine manufacturers that under the law of 1902 

 they can introduce into their product butter color through the agency 

 of butter is absurd upon its face. The law distinctly prohibits any 

 artificial coloration in the oleomargarine. If artificial coloring gets in 

 there through the medium of any agency the law is plainly violated. 



One of the cases is based upon the claim of the manufacturer that 

 the use of palm oil in oleomargarine is not artificial coloration. From 

 the evidence presented it is shown that the particular sample of oleomar- 

 garine in question was made according to the following formula: 



3 lbs. oleo oil. 



1 lb. 2 oz. neutral oil. 



2 lbs. cotton-seed oil. 

 1 lb. 14.5 oz. milk. 



1 lb. 4 oz. salt. 



1.5 oz. palm oil. 



Total. 9 lbs. 6 oz. 



There seems to be plenty of salt in this compound, but I take the 

 formula as given in the brief submitted by the government. In the 

 compound named there is a total of 160 ounces, only 1.5 ounce being 

 palm oil. This is less than 1 per cent, of the entire amount. Palm 

 oil is a product of the fruit of palm trees, and is chiefly used in the 

 manufacture of soap, candles and axle grease. It has a deep red or 

 orange color. When fresh it has a sweetish taste; when older it has 

 a rancid and unpleasant smell. The introduction of this oil into olea- 

 margarine could have no other purpose than that of coloration. 



The decisions of the lower courts will undoubtedly be sustained, as 

 it is clearly a correct construction of the law to say that it prohibits the 

 introduction of anything into oleomargarine solely because of its color- 

 ing properties and that butter color, whether introduced into the oleo 

 compound alone or with the respectable companionship of butter, is 

 artificial coloring just the same; and further, that palm oil is a detri- 

 ment to oleomargarine and would not be used except for its color 

 property. 



If the Supreme Court should make an adverse decision, it would be 

 necessary to make another fight in Congress to strike the words 

 "artificial coloration" out of the law. 



The operation of the law has entirely disproved the prophecies of its 

 enemies. It was claimed that it would utterly destroy the oleomargine 

 business with its millions of invested capital. According to the report of 

 the Commissioner of Internal Revenue for the year ending January 30, 

 1903, there are 26,586 licensed manufacturers and dealers in this country 

 making and selling oleomargarine. There are 31 factories in 12 States. 

 The production of the uncolored article for the year ending January 

 30, 1903, was 67,573,689 pounds. Colored oleomargarine, upon which the 

 10 cent tax was paid, was produced to the extent of 5,712,257 pounds. 

 The total product for the year was 72,285,946 pounds. This does not look 

 as if the industry had been destroyed. The previous year production 



