488 OLEOMARGARINE. 



can accrue to the manufacturers of cotton-seed oil as a result of this 

 legislation, even if it would (as they claim) crush out the industry 

 entirely, which we deny. 



Mr. MILLER. I would like to call the attention of the committee to 

 the statement made by Mr. Culbertson, representing the Paris Cotton 

 Oil Company, of Paris, Tex. That statement was to the effect that 

 -the amount of oil made for the manufacture of oleomargarine was 25 

 per cent of the total amount of oil made. 



Mr. KNIGHT. I do not know what Mr. Culbertson said; but I do 

 know that the Secretary of the Treasury has reported that in the 

 83,000,000 pounds of oleomargine made in this country last year there 

 were less than 9,000,000 pounds of cotton-seed oil. I can not give you 

 in pounds the amount of cotton- seed oil produced; I am only giving it 

 in dollars, as shown by this report, which does not give it in pounds. 

 So that that statement will hardly stand the test of reason, when it is 

 seen that the value of all of the cotton-seed oil is $50,000,000 yearly, 

 and there is only $500,000 worth used in the oleomargarine made in this 

 country, and 25 per cent of the $50,000,000 would be $12,500,000. 



Mr. MILLER. You are not taking into consideration the amount 

 exported. 



Mr. KNIGHT. Do we make into oleomargarine in this country the 

 cotton-seed oil that is exported ? 



Mr. MILLER. What would be the effect upon the export trade if you 

 should place a ban on the oil used in this country ? 



Mr. KNIGHT. I want to speak in connection with this matter of 

 "placing a ban" on the oil in this country. When this bill was up for 

 consideration in 1886, the cry was, "If you place a 2-ceiit stamp on 

 oleomargarine, you will place a ban on the article, so that nobody in the 

 United States will use it." But the minute the tax was placed on oleo- 

 margarine, its manufacturers began to call it an indorsement by the 

 Government of oleomargarine ; and the matter has been carried into 

 the courts, and it has been claimed that this taxation gave the Govern- 

 ment's stamp of approval to oleomargarine. 



Now, if 2 cents a pound tax will give you the Government's stamp of 

 approval, a tax of 10 cents a pound will give you five times that much 

 approval. [Laughter.] 



Senator MONEY. Let me ask you a question : Do you want to repress 

 or destroy the manufacture of colored oleomargarine in this country ? 

 Is that your wish ? 



Mr. KNIGHT. Why, I think it has been demonstrated here, Senator, 

 that white oleomargarine can be sold. I know very well that if its 

 manufacturers want to build up a trade in white oleomargarine, they 

 can do it. 



Senator MONEY. I would like to have you answer my question. 



Mr. KNIGHT. Yes, sir. . 



Senator MONEY. I think we should have a candid talk about this 

 matter. 



Mr. KNIGHT. Yes. 



Senator MONEY. Do you wish to diminish the oleomargarine produc- 

 tion, or not? Do you want to injure it, or do you want to suppress it, 

 or do you want to get it out of the way as a competitor? 



Mr. KNIGHT. We do not want to compete with oleomargarine, col- 

 ored so closely to resemble butter that the people can not have a choice 

 between it and genuine butter. 



Senator MONEY. Then is your idea that by taxing it 10 cents a 

 pound you will get rid of a competitor? Is that it? 



