OLEOMARGARINE. 489 



Mr. KNIGHT. I think we will get rid of the incentive of people to use 

 that product to defraud the public. 



Senator MONEY. Now, without using any roundabout expressions at 

 all, you want to get rid of a competitor, do you; and you want to get 

 rid of it by a tax of 10 cents a pound.? 



Mr. KNIGHT. We want to get rid of a fraud, Senator. 



Senator MONEY. I am not talking about fraud. We disagree on that 

 subject, you know; for I think there is as much fraud in your business 

 as there is in ours. 



Mr. KNIGHT. There is fraud in every business. 



Senator MONEY. Nevertheless we have had testimony here to show 

 that you take rancid and sour butter, and paddle it up, and put chem- 

 icals in it, and sell it for butter. 



Mr. KNIGHT. And we have also had testimony, Senator, to the effect 

 that these oleomargarine people want to color their butter in imitation 

 of that "rancid stuff." 



Senator MONEY. All right. That is another matter. Now, you want 

 to get rid of this industry whether it is a fraud or not; and that is the 

 object of this measure, is it not to get rid of oleomargarine ? 



Mr. KNIGHT. I do not see how I can explain to you my views 



Senator MONEY. You can explain. them by answering the question. 



Senator FOSTER. Do you want to get rid of it if it is not a fraud? 



Mr. KNIGHT. We want to get rid of the fraudulent competition. 



Senator FOSTER. The illegitimate competition? 



Mr. KNIGHT. The illegitimate competition. 



Senator MONEY. And in order to do that, you want to tax the whole 

 production 10 per cent? 



Mr. KNIGHT. No, indeed, we do not. 



Senator MONEY. Is not that the proposition? 



Mr. KNIGHT. No, sir; the Grout bill only taxes that which is colored. 



The Acting CHAIRMAN. Will there be any tax on the pure uncolored 

 oleomargarine under this bill, as you understand it? 



Mr. KNIGHT. There will be a quarter of a cent tax, Senator, for this 

 reason. The idea of putting a quarter of a cent tax on the uncolored 

 article is to place it within Government restrictions, so that when a 

 man puts up a factory he will be located by this tax and the Govern- 

 ment can keep its eye on him. 



The Acting CHAIRMAN. I mean apart from that. That is a mere 

 bagatelle. Do you want any substantial tax upon the uncolored 

 oleomargarine? 



Mr. KNIGHT. Oh, no; no, indeed. 



Senator MONEY. Now, I want to ask you this question: Are you 

 willing to insert in this bill a provision that no dairyman shall color his 

 butter? 



Mr. KNIGHT. No, indeed ; we are not. 



Senator MONEY. No ; but you are willing that the manufacturer of 

 process butter shall be restricted there, are you ? 



Mr. KNIGHT. No ; now, 1 will explain that. That has been brought 

 up here several times. 



Senator MONEY. Excuse me; I would prefer to have you answer my 

 question. 



Mr. KNIGHT. I can not answer it, sir, yes or no; because I have got 

 to explain to you that renovated butter is made out of butter which is 

 already colored, either by nature or by the farmer artificially. The 

 manufacturer of renovated butter, in choosing his stock, has no choice 

 at all in this particular matter. He could not be compelled to make 



