OLEOMARGARINE. 851 



which they have thousands of dollars invested can be so ignorant of 

 the law as to unintentionally make such statements. 



But in order to fully settle this matter we refer to the testimony of 

 the honorable Secretary of the Treasury, upon pages 564 and 565 :" 



The ACTING CHAIRMAN. Your revenue agents, Mr. Secretary, are expected to visit 

 these factories and to take observations with respect to the quality of the ingredients 

 constituting oleomargarine, are they not? 



Secretary GAGE. Yes, sir. 



The ACTING CHAIRMAN. What are their opportunities for observation in that 

 direction? 



Secretary GAGE. Oh, they are ample in these large establishments. They are all 

 open to our agents. 



Senator BATE. Have you scientific inspectors to investigate what the component 

 parts of this product are? 



Secretary GAGE. No; I do not think we have. We put it to the test frequently, 

 however. We get samples and have analyses made of the product. That is to say, 

 we have done so in the past; I do not know what we are doing just at this moment. 



Senator ALLEN. Your agents, however, are not all experts in the examination of 

 oleomargarine, are they? 



Secretary GAGE. Oh, no no. 



Senator ALLEN. So that they might be imposed upon, as well as the ordinary 

 intelligent citizen? 



Secretary GAGE. Very easily. 



Senator ALLEN. They might walk into a place and call for butter, and oleomarga- 

 rine might be handed to them as butter; and unless they took it to some person 

 competent to make an analysis of it, they might not know the difference? 



Secretary GAGE. That is quite true. 



Senator BATE. Do you keep agents at any of these large establishments? 



Secretary GAGE. I do not think we do keep any regular watch on them. 

 * * * * * * * 



Senator ALLEN. Then you do not keep such agents in these large establishments 

 which manufacture oleomargarine? 

 Secretary GAGE. No. 

 ******* 



Senator ALLEN. The only thing with which you are concerned is the tax? 



Secretary GAGE. That is the main thing, of course. 



Senator MONEY. The remark you have just made, Mr. Secretary, suggests this ques- 

 tion: You say the greater the tax the greater the incentive to fraud. The same rule 

 would apply here, would it not? 



Secretary GAGE. Undoubtedly. 



The ACTING CHAIRMAN. Do the instructions of your Department, Mr. Secretary, 

 require the agents who visit these manufactories to report to you with respect to the 

 purity of the ingredients used? 



Secretary GAGE. No; I do not think so. 



And to show the utter absurdity of this claim of inspection your 

 attention is called to the following statement of your orator on 

 page 499: 



There are in the United States over 9,500 dealers, I believe, and 30 manufacturers 

 of oleomargarine. The report of the Commissioner of Internal Revenue for the year 

 1900, which I hold here, shows that during the year 1900 the chemical department 

 of that bureau made 177 analyses of oleomargarine. You can figure the proportion 

 177 bears to nearly 10,000. That will show you how many times a year they get 

 around to these retailers and inspect their goods, and inspect the wholesalers, and 

 inspect the factories. 



AS TO POLICY. 



The dairymen are not asking paternal protection for the sole pur- 

 pose of fostering their great and important industry. They only ask 

 the Government to use its strong arm to protect them against an 

 illegitimate fraud which has proven itself to be beyond the reach of 

 State laws. 



But in the evidence a number of points have been brought out which 

 are worthy of consideration by your committee. 



