634 OLEOMARGARINE. 



the law. It is the experience of butter dealers everywhere that if they 

 undertake to sell oleomargarine for what it is, they will not sell it at 

 all. The working people who want cheap goods and are compelled to 

 have it do not want oleomargarine. It is sold to most people for an 

 article which it is not. It is sold under a misrepresentation. With 

 reference to the movements that have been tried by the producers to 

 protect themselves from this fraudulent imitation and many move- 

 ments have been tried there does not seem to be anything likely to be 

 more effective than this bill, for the reason that they can not sell this 

 thing as butter, because the 10 cents tax will bring it up to the cost 

 which is now paid by the consumer for butter. The difference repre- 

 sented by this tax now goes into the pockets of the illegal dealers. 



Mr. LORIMER. You say that if this tax is put on oleomargarine then 

 there will be no sale of it in competition with butter? 



Mr. DAVIS. That is about it. They can not sell it. 



Mr. LORIMER. You mean to say they can not sell it in competition. 

 They can sell it if anybody buys it. Would not that virtually mean 

 the driving of colored oleomargarine out of the market as a matter of 

 trade f 



Mr. DAVIS. That might be incidental to the operation of the law. 



Mr. LORIMER. If they can not pay this 10 cents tax, would that not 

 drive it out of the market? 



Mr. DAVIS. Not necessarily. 



Mr. LORIMER. You do not believe it would interfere with the sale of 

 it? 



Mr. DAVIS. I do. 



Mr. LORIMER. Is it not the intention of many who favor the passage 

 of this bill to drive colored oleomargarine out of the market? 



Mr. DAVIS. The object, as I take it, of the men interested in this is 

 to prevent illegal competition with butter to protect the law-abiding 

 people. In Philadelphia we believe that 90 per cent of this traffic is 

 done illegally. Of course that operates to the disadvantage of people 

 who do business in a proper way. For instance, I am alongside of a 

 man selling oleomargarine for butter, and he makes an enormous profit, 

 whereas the butter seller make only a legitimate profit. 



Mr. LORIMER. You say you think the passage of this bill will prevent 

 dealing illegally. If you have a tax of 10 cents, how will that prevent 

 the illegal traffic in your city ? 



Mr. DAVIS. There would be less inducement offered. It would be 

 that much accomplished. Everything helps for the protection of the 

 dealer who is law abiding. 



Mr. LORIMER. Is not the object to drive colored oleomargarine out 

 of the market? 



Mr. DAVIS. We want to prevent this illegal traffic which operates to 

 the injury of the law-abiding people who are doing a legitimate 

 business. 



Mr. LORIMER. The reason I am asking this question is because a 

 gentleman who appeared before the committee a week ago to-day said 

 it is the desire of the butter men to drive oleomargarine out of the 

 market that they want to drive the oleomargarine manufacturer out of 

 business. I wanted to find out whether or not that sentiment prevails 

 over the country. 



Mr. DAVIS. If driving it out would be incidental to the operation of 

 this law, then oleomargarine would have to be sold upon its merits. 



Mr. LORIMER. In its white state? 



Mr. DAVIS. Yes, sir. 



(*52) 



