258 THE BUTTER INDUSTRY IN UNITED STATES [ 4 g 2 



to have caused an important reduction in the production 

 of oleomargarine as the following statement 1 indicates: 



1900 

 1901 

 1902 

 1903 

 1904 

 1910 

 1914 



Total amount of 



oleomargarine 



(pounds) 



107,045,028 



104,943,856 



126,316,427 



73.285,946 



50,203,495 



141,862,280 



144,021,276 



Amount of 



colored 



(pounds) 



5,712,257 

 3,785,670 

 6,176,991 

 6,384,222 



Amount of 



uncolored 



(pounds) 



67,573.689 



46,417,825 



135,685,289 



137,637,054 



This statement seems to indicate that the law of 1902 

 caused a great decrease in the amount of oleomargarine 

 produced. It must not be forgotten, however, that 1903 

 and 1904 were years of comparatively low prices for 

 butter, and that this fact helped to decrease the amount 

 of oleomargarine produced. Beginning with 1905 there 

 was a general rise in the price of butter. This gave rise 

 to a greater demand for oleomargarine and was sufficient 

 cause to increase the production and consumption of the 

 butter substitute. The imposition of a tax of ten cents 

 in the law of 1902 was of course an important factor. 

 Its effect was to make it more profitable to produce un- 

 colored oleomargarine; but this fact distinguished it 

 from butter and had a tendency to lessen its demand. 

 It made the production of colored oleomargarine very 

 expensive, and some time had to elapse before ways and 

 means could be devised by which the manufacturers and 

 dealers could evade the new law without technically 

 violating it. The law requires a tax of ten cents on 

 oleomargarine artificially colored that makes it look like 

 butter. Oleomargarine, however, can be colored by 



1 From Reports of U. S. Internal Revenue Commissioner. 



