324 OLEOMAKGAEINE. 



of consumption is cut off from the oil mill, and the annual surplus of 

 production over and above consumption will be doubled. Any busi- 

 ness man will know what this would mean. It would mean a reduction 

 of the price of the product, especially at the beginning and the end of 

 each season. 



In view of all these facts, Mr. Chairman, we beg leave to enter our 

 most earnest protest against the passage of this bill. 



STATEMENT OF HENRY BOND, OF CHATTANOOGA, TENN. 



Mr. BOND. The gentleman who preceded me said just about the same 

 thing that I am going to say, but I did not know he was going to do so. 



I am engaged in the cotton-seed-crushing business and manufacture 

 crude cot ton -seed oil. 



There are 15 cotton-seed-oil mills in Tennessee, representing, in 

 investment and capital, about $2,000,000. They employ about 1,000 

 men and have a weekly pay roll of about $10,000. 



I am requested by these interests to protest before this committee 

 against the passage of the Grout bill first, because we are opposed to 

 class legislation, and, secondly, because we. think this particular bill 

 will work a great hardship to our community. I desire to give briefly 

 our reasons for so thinking. 



I have here the credentials authorizing me to represent the mills ot 

 which I speak, and I will say that the company of which I am the vice- 

 president owns and operates 2 of the 15 mills in the State of Tennessee. 



Testimony heretofore given before your committee indicates that 

 about 40,000 barrels of cotton-seed oil are used in the manufacture of 

 that portion of oleomargarine that is consumed in this country annually, 

 and while we have no definite data, the impression prevails that more 

 margarine oil is exported than is used here. 



The mills of Tennessee will crush this year about 150,000 tons of 

 seed and make over 100,000 barrels of oil, or probably just about 

 enough to fill the requirements of the oleomargarine trade. 



The oleomargarine manufacturers, however, use only the very best 

 grades of cotton-seed oil wherever they can find it, and pay higher 

 prices than the mills can obtain from any other source, and we believe 

 that their demands go a long way toward setting the market price for 

 the whole cotton seed- oil production. 



After it was known last spring that Congress would not (for some 

 time, at least) further impede the oleomargarine business the price of 

 cotton seed oil at once advanced, and the advance was maintained all 

 during the summer and fall, until Congress reassembled and renewed 

 the attack upon it. Since then, although other conditions seemed to 

 warrant the expectation of higher prices, oil has declined about 5 cents 

 per gallon, or $2.50 per barrel, and we believe this decline is due to 

 the threatened legislation against oleomargarine, which deters the 

 manufacturers from making purchases for future use. 



Favorable weather all fall and winter had expedited the picking and 

 ginning of the cotton and the marketing of the seed. That part of the 

 business is practically over now, and there is no way in which the mills 

 can protect themselves, so that they alone will have to bear the burden 

 of the loss this season. 



Hereafter, however, should the Grout bill or any similar prohibitory 

 measure become law, and these conclusions be correct, the mills, in 

 self- protection, will be forced to reduce the price of seed to correspond 

 with the reduced price of oil, and the farmers will then have to bear 



