Omaha daily bee., 1902-07-27
BRANDS ON PROCESS BUTTER
Manufacturer and RsnovAtorI Discuss the
Internal Revenue Ruling.
LAW MAY Be TESTED IN THE COURTS
Hope tins IL May he Held Invalid
Likely 20 Lead TO Suit Which
VIII Settle the MOOted
Question.

w. 4. Riddell has returned from Chicago,
where he attended a meeting Of the lead
ing manufacturers Of process butter, called
for the purpose Of perfecting an associ-
alton which will have for It's object the
discussion of AFFAIRS relating to the business
and cooperation among the Members to
advance mutual interests.
The meeting was primarily the result OF
the regulations recently promulgated by the
commissioner of internal revenue govern
ing the manufacture and sale Of process and
renovated butter. Twenty-one out Of forty
six factories Of the United States we're
represented and the recommendations of
the meeting will probably be endorsed by
the entire number. The principal discus
sion was over the rules regarding the plac-
ing Of stamps and brands upon the
packages OF process butter. Under the
present regulations the manufacturer Of
oleomargarlne are not required to stamp
the product, the stamp being applied to the
package. Renovated or process butter must
be stamped not only upon the package. but
also upon the roll when the butter is sold
under stamp or brand. In this case also,
the words renovated butter must appear
on the packages In letters twice the size
Of the letters used to designate the brand.
Under these conditions the stamps or
brands on renovated butter are twice the
size and attract twice the attention of those
on oleomargarine. This vas one Of the
principal grievances OF the manufacturers
A combined effort will be made to have
the commissioner amend his regulations in
this respect.
Many Attack the Law.
While II was not on the program OF the
rnaaffn0 the dtaaffor ~ the constitution
ality Of the law. was discussed to a great
extent by the manufacturer present.
Opinion as to the constitutionality OF the
law was about evenly divided. One mem
Der said that 1t was the opinion of two Of
the best constitutional lawyers in the state
OF Illinois that the law would not stand
the test Of the courts, while others had
legal opinions sustaining the measure.
Outside Of the district Of Nebraska each
manufacturer of process butter has filed
with the collector OF customs a protest
against the payment Of the tax, claiming
that 1t Is unconstitutional. While no ar
~rangements were made for a test case to
determine the question 1t is believed that
one will be made by some Of the maunfsc-
t%urers, who will be supported by their
fellows.
Omaha dealers in process butter and
managers Of are discussing the
probable result Of the decision Of the
case brought before the supreme court on
an appeal, wherein It was sought to col
lect the special tax upon creameries and
dealers in butter and oleomargarine from
one John Merrill. a creamery manager.
In this case the law provided for a tax Of
$40 upon each creamery. 81 upon each
skimmfng station, $40 upon each whole
sale dealer in butter and an additional
tax of SIS upon such dealer II he submitted
the butter to a renovating process, and $25
upon each dealer in oleomargarine. When
the suit was started the collectors Of the
state tax suspended operations and none
of the dealers, 1t is alleged, has paid the
tax. The law was recently sustained by the
supreme court and 1t Is expected by the
manufacturers and dealers that the tax
will now be collected, at least for the fu-
ture, If not for the past.