562 OLEOMARGARINE. 



Senator ALLEN. Have you some statistical matter there, Mr. Secre- 

 tary, wbicli you desire to submit? 



Secretary GAGE. No, sir. 



The ACTING CHAIRMAN. Do any members of the committee desire 

 to ask the Secretary any questions? 



Senator FOSTER. I suppose the points you have made bear directly 

 on the question of revenue, and not at all on the merits of the bill 

 otherwise? 



Secretary GAGE. So far, I have not expressed any views on the merits 

 of the bill. 



Senator MONEY. You only speak of it as a revenue measure! 



Secretary GAGE. Only as a revenue measure. 



The ACTING CHAIRMAN. Mr. Secretary, can you tell us what has 

 been the experience, in a general way, of your Department in the col- 

 lection of the revenue on oleomargarine? You know, of course, that 

 there is now a 2-cent tax on it. 



Secretary GAGE. Yes, sir; I think the revenue is well collected. 

 There has been considerable discussion of that subject between the 

 Commissioner of Internal Revenue (especially Commissioner Wilson) 

 and myself, at different times; and we think we are cheated to some 

 extent, as we are in all revenue matters. 



The ACTING CHAIRMAN. There is bound to be a certain percentage 

 of loss, of course. 



Secretary GAGE. There is bound to be a certain percentage of loss. 

 That is evidenced by the fact that we receive "conscience money" from 

 people who say they have defrauded the revenue department, and it has 

 come to be a matter of conscience with them. 



Senator FOSTER. Then you think there is "moonshine butterine" 

 made ? 



Secretary GAGE. Undoubtedly. Judging by the best means of infor- 

 mation we have (and we have to guess at it to some extent, for, of course, 

 the unknown is not known) we estimate that we are cheated out of per- 

 haps 7 or 8 per cent of the revenue. 



Senator ALLEN. I suppose there is no surplus in the conscience fund, 

 is there? 



Secretary GAGE. No; and there never will be. (Laughter.] That is 

 the only fund which will never be troubled with a surplus. 



Senator MONEY. In collecting other revenue taxes, like that on 

 whisky, for instance, is the loss as great as on oleomargarine? 



Secretary GAGE. Yes; I should suppose it is about the same percent- 

 age. That loss occurs mostly in the "rnoonshining" business. In the 

 large establishments it is probable that the tax is absolutely and fully 

 collected. 



Senator BATE. Then I suppose the losses in oleomargarine internal 

 revenue collections are about on a par with the losses in all other reve- 

 nue collections? 



Secretary GAGE. Well, they are on a par with the losses in most of 

 the revenue collections. There is not any great disparity. 



The ACTING CHAIRMAN. Mr. Secretary, what about the percentage 

 of prosecutions, as compared with the prosecutions in other lines? 



Secretary GAGE. Offenses against the oleomargarine internal-revenue 

 law are as vigorously prosecuted as any of the other offenses against 

 the revenue laws, when they come to our knowledge. It is the duty of 

 the collector of internal revenue in each district to use his agents and 

 inspect as thoroughly and carefully as he can the manufacturers of 

 oleomargarine and dealers in it, and to see that they are paying the 



