OLEOMARGARINE. 567 



we have just been talking about, as lie can evade the present law by 

 having his wrappers printed just on the border line between reada- 

 bility and obscurity. And many do undoubtedly try to keep just on 

 that border line, where they can say to the revenue agents, "It is 

 printed," and to the man who buys it, "It is not printed." 



Mr. KNIGHT. I see. 



Secretary GAGE. There is a border line that is hazardous for us and 

 hazardous for them, too; but it exists in every other branch of the 

 business. 



Senator ALLEN. Is not that a practical evasion of the law as it now 

 stands? 



Secretary GAGE. They do evade it in that way; yes, sir. 



Senator ALLEN. Should not they be prosecuted ? 



Secretary GAGE. We do prosecute them where it is a fair, clear 

 violation. 



Mr. TILLINGHAST. Mr. Secretary, if the manufacturers were directed 

 to put up their original I and 2 pound packages in sucb manner as the 

 Department prescribed, could they not be put up in such a way that it 

 would be almost impossible to have any fraud perpetrated until the 

 package itself was broken f 



Secretary GAGE. The package would have to be broken first. 



Mr. TILLINGHAST. Then, if the manufacturer himself put up the 

 product in original packages in the way prescribed, would there be 

 very much danger of anyone's attempting to break those original 

 packages ? 



Secretary GAGE. I think very little. That is my judgment. 



Mr. TILLINGHAST. Now, Mr. Secretary, as to the 7 per cent of fraud 

 which you estimated might possibly exist at the present time, is any 

 part of that attributed to the present manufacturers known to the 

 Department, and who are paying the 2 cent tax? You have no diffi- 

 culty with fraud in that line, have you! 



Secretary GAGE. None at all. 



The ACTING CHAIRMAN. That is, so far as the manufacturers are 

 concerned? 



Secretary GAGE. Yes, sir. 



Mr. SCHELL. And if the sale of packages were limited to those 

 inclosed by adhesive revenue stamps it would compel the collector to 

 properly enforce the law to protect his revenue, would it not? 



Secretary GAGE. Yes; it would. 



The ACTING CHAIRMAN. Unless members of the committee have 

 further questions to ask the Secretary, we will conclude the hearing 

 or unless you have some further statement to make, Mr. Secretary. 



Secretary GAGE. No, sir. 



The ACTING CHAIRMAN. The committee is very much obliged to 

 you, Mr. Secretary. 



Secretary GAGE. I thank you for your courtesy, gentlemen. 



(Thereupon, at 12.45 o'clock p. m., the committee adjourned until 

 Tuesday, January 15, 1901, at 10.30 o'clock a. m. 



WASHINGTON, D. C., January 15, 1901. 



The committee met at 11 a. m. 



Present: Senators Proctor (chairman), Foster, Heitfeld, Money, War- 

 ren, and Bate. 



Also, Hon. William W. Grout, Representative from Vermont; Hon. 

 J. W. Wadsworth, Representative from New York; Mr. Tillinghast, 

 Mr. Schell, Mr. Jelke, Mr. Miller, and others. 



