OLEOMARGARINE AND OTHER IMITATION DAIRY PRODUCTS. XI 



rience has shown, there would not be any considerable demand for 

 oleomargarine in an uncolored condition. This opinion is based upon 

 efforts which have already been made to introduce and sell the uncol- 

 ored product in States where anticolor laws now prevail. The object, 

 therefore, of imposing this excessive tax of 10 cents a pound upon 

 colored oleomargarine is not for the purpose of raising revenue, but 

 for the purpose of prohibiting its manufacture, and of thus destroying 

 the industry. It is of no importance that the proposed legislation 

 reduces the tax on uncolored oleomargarine from 2 cents a pound to 

 one-fourth of a cent a pound. Unless there is reason to believe there 

 would be a substantial production of that kind of article, the increase 

 of the tax of 10 cents a pound would, in all probability, prevent any 

 substantial revenue being derived from its manufacture. 



The alleged frauds committed in the sale of oleomargarine are not 

 attributed to the manufacturers, but to the retail dealers in the article. 



This brings us to the consideration of the question whether fraud in 

 the sale of oleomargarine as butter can better be prevented by the 

 proposed legislation, which imposes a tax of 10 cents a pound upon 

 its manufacture, or by the enactment of more stringent regulations 

 governing the retail dealer. 



Under the present law the retail dealer is required to break the 

 original package in which he receives oleomargarine from the manu- 

 facturer. The smallest package which the law permits the manufac- 

 turer to place upon the market contains 10 pounds. The retail dealer 

 is only permitted to sell from the manufacturer's original packages. 

 If he desired to sell in 10-pound packages or over, he would be required 

 to take out a wholesale dealer's license, which is fixed at $480 a year. 

 This makes it necessary for the retailer to break the original pack- 

 age, and it is conceded that whatever frauds may be committed occur 

 by reason of this fact. 



If the retail dealer desires to commit a fraud upon his customer, the 

 opportunity for so doing is thus afforded. If legislation can be enacted 

 which will require the retail dealer to sell oleomargarine in the origi- 

 nal package put up by the manufacturer without breaking the wrap- 

 per or the internal-revenue stamp of the Government, and if such 

 wrappers and stamps were clearly and distinctly marked and branded, 

 under regulations of the Commissioner of Internal Revenue, the 

 opportunity to commit fraud upon the customer would be wholly 

 eliminated or reduced to a minimum. This opinion is entertained by 

 those most intimately connected with the manufacture and selling of 

 oleomargarine; and it is also the opinion of the Secretary of the Treas- 

 ury, given in his statement before the Senate Committee on Agricul- 

 ture; and also the opinion of ex- Commissioner of Internal Revenue, 

 Mr. Wilson, given in his statement before the House Committee on 

 Agriculture. 



Under the proposed bill the temptation to fraud on the part of the 

 retail dealer would be largely increased from the fact that he will be 

 enabled to buy the uncolored oleomargarine, on which one-fourth of a 

 cent per pound tax is imposed, and by coloring the same himself 

 increase the value of his product 9f cents per pound, for the reason 

 that he could sell the same at this largely increased profit for either 

 butter or oleomargarine. 



We assume that the lawmaking power of the Government desires 

 to prevent the possibility of fraud in the sale of oleomargarine as but- 



