OLEOMARGARINE. 533 



Kevenue Department is concerned in regard to branding, or in regard 

 to selling oleomargarine for butter, there is not the slightest interest 

 in that Department on that question. I am speaking from experience. 



Senator DOLLIVER. Why is it that the Government has an interest 

 in the enforcement of the whisky rax? 



Mr. KNIGHT. Whenever a man finds out illicit whisky, he attaches 

 IK) per cent of the tax; but in the case of oleomargarine he does not 

 attach any of the tax. The point of this 10 per cent tax is to fix it so 

 that if he colors it in imitation of butter, he will have to pay enough to 

 relatively cost the retailer a figure that will not leave him an incentive 

 to take his chances under State laws. The minute that you descend 

 into the internal revenue with a tax on it and say you will collect a 

 tax of 10 cents on every pound, they will collect it. We know that. 

 There is our position about enforcement; but they care nothing for the 

 police measures. 



Senator DOLLIVER. They enforce the provisions as to packages of 

 tobacco, 1 suppose, as to size and weight? 



Mr. KNIGHT. I am not well informed on tobacco laws, but they 

 require a stamp of so much on every package containing so many 

 pounds. 



Senator DOLLIVER, They regulate the size of the package. 



Mr. KNIGHT. Yes; they simply require that that amount of revenue 

 goes on. 



Senator ALLEN. They require an adhesive stamp. 



Mr. KNIGHT. In any other internal-revenue article there is abso- 

 lutely nothing in the shape of imitation that causes people to throw off 

 the stamp. Wbat incentive has a man to remove the stamp from cigars 

 or tobacco? None at all. 



Mr. MILLER. The putting of a stamp upon a package is what we 

 want. We would like to have that to day. 



Senator ALLEN. You would be willing to put on a regular adhesive 

 stamp ? 



Mr. MILLER. Yes, sir. 



Mr. IHRIGH. Does Mr. Knight want to insinuate that our revenue 

 officers throughout the country do not attend to their duties? 



Mr. KNIGHT. Yes; and in confirmation of that I would like to read 

 from the Commissioner's report. 



Senator ALLEN. I do not think we want to go into that. 



Mr. SCHELL. In reply to Senator Allen's question, I think I can em- 

 phasize the point quite a good deal. He wants to know what would 

 prevent the taking off of the wrapper and remixing the stuff' down in the 

 cellar. I presented here yesterday, as the Senator will recall, a list 

 representing 1,083 consumers who buy directly from one of my clients, 

 and they all unite in asking that this Grout bill be defeated. If this 

 bill become a law, they will be unable to buy, and we will be unable to 

 manufacture for them or to export any of the product colored. 



Senator DOLLIVER. The man down cellar would be handling the' oleo- 

 margarine, and the margin between the retail price of it and the price 

 of real butter would be practically wiped out, and there would be no 

 incentive to fraud. 



Mr. SCHELL. The dishonest retailer would have If cents and the 8 

 cents extra tax that is put on, which would make 9f cents extra induce- 

 ment for fraud. He could easily take the uncolored product to his cel- 

 lar and work it over with the proper color. There is no law to prevent, 

 and a ruling of the Department that would allow him to do so with safety. 



