276 IOWA DEPARTMENT OF AGRICULTURE. 



a result of their inability to make oleomargarine in competition with 

 people who are selling it on its merits today. 



The foregoing amounts are penalties levied for the use of cotton- 

 seed oil containing the forbidden palm oil, used in 2.000,000 pounds of 

 oleomargarine put out under the quarter cent tax for the uncolored 

 I)roduct. This makes a total of $490,493 in these two items for the past 

 fiscal year alone, which the Government would be compelled to refund 

 should oleomargarine makers win these suits and added to this would 

 be almost as much more on retail licenses for colored goods, and tho 

 amounts paid thus far this year for ten cent tax stamps. In short, the 

 internal revenue department has in these suits a stake of nearly u 

 million dollars for the Government, making the cases so important that 

 we believe the department will leave no stone unturned to win. We must 

 understand one thing in connection with this case, that the Government 

 and Government attorneys are not as familiar with the technique of 

 this matter as those w^io have spent years in its investigation, as have 

 the officers of the National Dairy Union. 



STATUS OF THE OnC ANIZATION. 



The work of the National Dairy Union during the past year has been 

 one of effort to establish a surplus fund to be used in case of emergency 

 which is certain to arise. At our last annual meeting at Milwaukee an- 

 nouncement was made that the Cream^ery Patrons' Handbook had been 

 prepared to be placed upon the market for the purpose of raising funds. 

 It was also decided to request creameries to subscribe 1 cent per tub upon 

 their product to assist in this work. 



During the past year over 19,000 of these books have been sold or 

 consigned to butter-makers to be sold to patrons. These books cost the 

 National Dairy Union $800 for engravings, composition, imposition, elec- 

 trotypes and compilation. Paper, press work and binding cost $4,336.51. 

 To express them to the nearly 2,000 agents w^ho pushed their sale cost 

 $1,402.65, besides the services of a bookkeeper to keep track of 2,000 ac- 

 counts ($371.00 for the year), a stenographer ($781.00) and the services 

 of the vice president for a large portion of the year, whose salary at $100 

 per month amounted to $800, and expenses of $827.59 in attending meet- 

 ings brought the expense for the handbooks up to $1,627.59, a total of 

 $9,318.75, as nearly as can be figured. 



From the sale of the books to November 1st we received in cash 

 $9,487.18, and have in the hands of agents throughout the country enough 

 more unpaid for and unsold to bring in $6,270.25 additional. In short, 

 ihe profits of the National Dairy Union upon the Patrons' Handbook de- 

 pend upon the successful sale and collection for the 9,000 copies unac- 

 counted for to date. 



From the one per cent tub subscription and other contributions 

 $3,940.63 has een received during the year. This has been very largely ac- 

 complished through the personal work of Vice President Shilling and 

 Special Agent James A. Harris, the salary and expenses of the latter 

 am'ounting to $773.77 for the six months he was employed by the National 

 Dairy Union. 



