OLEOMAKGAEINE. 625 



At the time this circular was issued butter of best quality was worth 

 at wholesale about 25 cents in Chicago. 



The Capital City Dairy Company tells its customers that they ought 

 to get from 25 to 30 cents for "Buckeye" or "Pride" oleomargarine, 

 which they will sell the retailer at 17 to 18 cents f. o. b. Columbus. This 

 means from 8 to 13 cents per pound profit, or from 33 to almost 80 per 

 cent profit on the "poor man's butter." 



But no, that is not what this means. The mention of 30 cents per 

 pound means to convey to the retailer the suggestion that "Pride" or 

 "Buckeye" can be sold at butter prices for that is about what the 

 best butter would be worth at retail and as butter. 



And this concern, as well as the others, are not satisfied with imi- 

 tating butter color, butter tubs, butter rolls, and butter prints, but needs 

 must put up "mixed, catch, or country rolls" that is, place in a box 

 various sizes, shapes, colors, and designs of oleomargarine to cause the 

 contents of said box to resemble country butter as it comes fresh to the 

 stores from the farmer. That is why the price is figured at "price of 

 smallest roll or print in package." Can the manufacturer plead in justi- 

 fication of this scheme to defraud and mislead " a desire to please the 

 eye?" 



But let us look a little further into the ability of yellow oleomarga- 

 garine to stand an increase of tax. 



The average cost of raw materials can not be much more than 8 cents 

 per pound for the best that is made without butter and of course very 

 little butter that article " devoid of keeping qualities and of 'doubtful 7 

 cleanliness" would be used in the immaculate product, oleomargarine. 

 It has been shown that the manufacturer sells it for from 10 to 18 cents 

 a pound and the retailer is advised that he ought to sell it at from 

 20 to 30 cents per pound. Between 8 cents cost of raw materials and 30 

 cents at retail is a margin of 22 cents, furnishing plenty of room for 

 the 10- cent tax, which amount and profit is now serving as an incen- 

 tive for the retailer to sell the stuff as butter and giving the manufac- 

 turer a profit that will permit him to pay costs and fines and other- 

 wise defray all expenses incurred in the defense of such suits. It is 

 this unnatural, abnormal, unfair, and corrupting profit that we desire to 

 be taken away from the traffic in order that our laws may stand some 

 chance of being enforced without having to expend as much State 

 money as these counterfeiters can afford to spend of their ill-gotten 

 gains. 



But let us see what some others have to say about the profits derived 

 from the sale of oleomargarine. 



In a circular letter sent the Chicago trade October 22, 1898, Wm. J. 

 Moxley says, among other things: 



Your profit will be double the amount made from the butter you are now handling, 

 and your butter trade will be more satisfied if you will sell them such butterine as 

 you can buy from me. 



Under date of March 17, 1899, Messrs. Braun & Fitts, of Chicago, 

 sent out a circular containing the following: 



Now is your chance to build up a first-class trade by handling only first-class 

 butterine. Eggs are selling at cost, but "the only high grade" will give you profit, 

 so keep pushing its sale and build up a reputation for good butter. 



Please note, the circular doesn't say, "build up a reputation for good 

 butterine," but for "good butter." 



We could supply Congress with hundreds of instances of where the 

 retailers advertise butter and sell nothing but oleomargarine. But our 

 endeavor here is to reveal the connection of the manufacturer with the 



*S. Rep. 2043 40 (*43) 



