The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-04-06
O~LE0MARGARINE PLANTS
OWNERS OF w IN THIS CITY DIS
TURBED BY Bill IN CONGRESS.
Tax Provided by Proposed Law Would
Prohibit Manufacture, Ac-
cordfnG to Them.

II the oleOmargarine bill now before Con-
gress becomes a law. two factories in this
city probably will close. II is said the tax
of 10 cents a pound on oleomargarine and
the high license for the privilege OF man
ufacturing the product will ave a depres-
sing effect on the industry. At Kingan's
packing house. one Of the largest oleomar-
garine plants IN the West. it was said yes
terday that If the law does go into effect
and is held constitutional by the Supreme
Court, it will have the effect of laying
waste many thousands OF dollars worth
OF machinery and property.
Robert S. Sinclair. manager of Kingan's
packing house. said that the new law, as
referred back to the House of Representa-
tives by the Senate, looks much like class
legislation and will hardly stand the test
of the courts. He said that in Kingan's
plant the manufacture of oleomargarine is
one of the largest branches OF the business.
and since its beginning eight years ago has
steadily increased until now more than
80 persons are employed in making the
butter. He said the business has increased
80 during the past eight years that 1t was
necessary to move the plant from the middle
of the packing house. where il was first
placed. to a larger building. Now. he said.
this place has grown too small for the pres
ent needs and already large additions have
been begun. He said these improvements
VIII entail the outlay of many thousands
OF dollars, as some very fine machinery has
been ordered.
When the firm heard of the proposed tax
by the government, he said, the additions
proposed and the machinery ordered were
deferred until II can be seen II the law is
upheld. He said that under the propose
tax the illegitimate butter makers will
have a good opportunity to swindle the
people and at the same time get around
the government tax and license. Mr.. Sin
clair said he thought q measure such as
now pending I'm Congress was a disgrace 10
the country. In Holland he said, where
the largest oleomargarine factories in the
world are located, there is no tax OF any
kind on the manufacture of butterine and
the product has been very helpful to the
country. Holland sends "oleo- TO Great
Britain, Austria and France. He said the
manufacture of the product should be fos-
tered in this country.
Arthur Jordan. who is also a manufac-
turer of oleomargarine and process or rem
oyated butter, says that the measure now
pending in Congress for the taxing Of oleo-
margarine will. in his opinion, be held con-
stitutionaI by the courts. as he has asked
several eminent lawyers in Washington,
and il is their opinion that the law will be
held constitutional. One effect IL will have,
he said, will be for dairymen OF the coun-
price of this product up to 20 and so cents
a pound. Other butter, he said. will also
rise in price and consequently the people
will be the sufferers from the law. Mr..
Jordan says he has a plant which has an
output Of 1900 pounds OF oleomargarine a
position he will make of the plant if the
law goes into effect.