Omaha daily bee., 1902-07-22
TOO SMART FOR THE FARMER
New olso Law Works to the Advantage Of
Makers of Artificial Product.
PUT ON THE MARKET CHEAPER THAN EVER
Makers Get the Color of the Product
OF the Cow by Natural Means and
Avoid Payment of the
Extra Tax.

WASHINGTON, July 21.-The law pro-
viding a heavy tax on oleomargarine Of the
colored. sort has been in operation just
three weeks, but enough has developed from
its operation to show that the oleomargar-
inc people have very much the better OF
the argument. The butter interests, which
organized to secure the passage Of the law,
were clearly dipped, and it is certain that
the operation OF the law will stimulate the
sale of imitation butter.
Just before the passage of the bill the
oleomargarine interests secured certain
changes in the wording of the measure
which have since permitted them to put
their article on the market a cent and
hree-qusrters a pound cheaper than under
the old law. In the sparring thus far for
advantage under the enforcement Of tho
act the oleomargarine men have proved
themselves superior to the pure butter man
ufacturers and have secured several opin-
ions from the commissioner of internal
revenue which will greatly aid them In
fighting their RIVALS.
Find LoOphOIc in Law.
Everything has hinged on that part OF
the law relating to the artificial ~coloring
Of oleomargarine. The pure butter people
thought II they could put a heavy tax on
such products It would wipe them out Of
existence. Accordingly the farmers through
out the country were organized for the pur-
pose OF getting a bill through congress en-
bodying this idea. An influential lobby was
organized and under the plea that the pas
sage Of the act would give the farmers
higher prices for their cream. Tremen-
dous pressure was brought to bear on con-
gress to adopt It. A bitter fight was pre-
oNntNoNnd tn nA-N~a.a A-I To- N-a ,aar-
the legislation was STAYED of. The system
attic campaign among the farmers, however,
had its effect and at last congress was
forced to pass a bill. Some amendments
we're made to the original draft before the
vote was taken and one OF them provided
that the 10-cent tax should be upon artih-
cially colored buffers instead Of upon oleo-
margarine that contains any ingredients in
tended to give to It a color resembling pure
butter. This loophole is being used by the
ol~eomargarine people as a means OF getting
their wares before the public at even better
rates than formerly.
The commissioner of internal revenue
has decided that the 10-cent tax does not
apply to oleomargaTine, which takes its
yellow color from an admixture of pure
butter. Exemption is also made for oleo-
margarine hat is colored with various
kinds OF vegetable oils, which might be
considered constituent parts of butter.
such as cottonseed oil. 1t has been found
that rich cream will impart a yellowish
tint to oleo, so that 1t sells readily. The
old law imposed a 2-cent tax on oleo, but
the new act lowers this to one-fourth Of
a cent a pound on oleo not artifcially col
ored. TIL oleo people are manufacturing
their product nowadays under the head of
ntnnnlnrod n1aA an1 nna raz,,tpoI a. $500.
only 'oneefourth of a cent a pound, thus
making a clear gain of 1% cents over the
old rate To this extent, therefore, the
farmers Of the country have lost through
the enactment Of the ELECTROMAGNETIC
bill.