4 8l] OLEOMARGARINE LAW AND ITS DEVELOPMENT 257 



The important changes made in the oleomargarine 

 law by the act of 1902 were the imposition of a ten-cent 

 tax on colored oleomargarine and a tax of one-fourth of 

 one cent on uncolored oleomargarine. 



The act also provides that oleomargarine shall be 

 subject to the laws of the states immediately upon its 

 arrival within the limits of their territory to the same 

 extent as that produced within the state, and that it shall 

 not be exempt by reason of being introduced into the 

 state in the original package. 



Dealers who mix oleomargarine with butter are de- 

 clared to be manufacturers of oleomargarine. 



Wholesale dealers who sell only oleomargarine upon 

 which the tax of one-fourth of one cent is imposed, are 

 required to pay a special tax of $200 instead of $480 as 

 required in the law of 1886. The special tax of retailers 

 selling only the uncolored article is reduced from $48 

 to $6. 



THE EFFECT OF OLEOMARGARINE LEGISLATION. 



In the main, the oleomargarine legislation has been 

 suppressive. The enactment of the state and federal 

 laws and the rigorous administration of these laws by 

 state dairy and food commissioners and by the U. S. 

 Internal Revenue Commissioner, undoubtedly seriously 

 hampered the rapid introduction of oleomargarine. In 

 spite of this legislative restraint, however, as was shown 

 in the chapter on prices, the fluctuations in the amount 

 of oleomargarine consumed in the United States from 

 1887 to the present have been primarily caused by the 

 rise and fall of the prices of butter, when butter prices 

 were high more oleomargarine being consumed, and 

 when they were low less being consumed. 



The effect of the federal law of 1902, however, seems 



