Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-04-28
OLEOM ARGARINE SALES
INCREASE I'M THE OUT.
PUT OF THE PRODUCT.
Facts Shown by the Internal Revenue
Bureau-Evasions OF
Law

The production OF oleomargarfne 10 APP
parently increasing, despite the tax ro-
strictions imposed by Congress year ago.
At first it was thought that the tax DUR
den would probably seriously. in1ure the
business In fact it was badly hurt for q
number of months. but the figures In pos
session of the internal revenue bureau
show that the manufacturers are beginning
to increase their output. What Is more
they have evidently discovered some pro-
cess by which they put coloring in the
product and escape the high tax imposed
for artificial coloring. This fact is keep
ing the officials of the internal revenue on
the jump and engaged in analyses of the
samples submitted to them. In some in
stances it has been found that the manu-
facturers are using palm oil, which. when
used for colorfng purposes, makes the pro-
duct taxable at 10 cents a pound
A comparison of the figures of oleomar-
garine taxation in the internal revenue bu-
reau for the nine months beginning July i.
1901. to March 81. 1902, when the old oleo-
margarine laws were in force, and for the
nine months beginning July 1. 1902, and
ending March 81, 1903, since the new laws
became effective. shows that in the first
period the collections made by the bureau
were 81. 7O3 31S. and for the second period
1896 .5S0S5. a decrease of 81 1856, 1871. In
the second period oleomargarine paying 10
cents pound, colored, has contributed
-
pound. uncolored has contributed s141.-
1887.
Collection Of Special Taxes.
In the first period the collections of spe-
cial taxes from manufacturers and whole
sale and retail dealers was $435, 235, while
in the second period the amount paid in
has been $247 ,4S1, decrease Of $1S7, 754.
Under the old law wholesale dealers paid
$3.50 tax a year. Wholesale dealers in COL
ored oleomargarine now pay $3.50 year;
uncolored. $260. Retail dealers under the
old law paid $4S. Those selling artificially
colored oleomargarine still pay $4S, but
those who are selling a product that can
not be classed as artiflcially colored pay
only So a year In the first period the
wholesale dealers paid in s73 ,4sO. in the sec
ond period S69,72 a decrease of s., 759. OF
the amount paio in the second period the
dealers In colored oleomargarine have con-
trlbuted $2S,22S, and the uncolored 81 1913.
In the first period the retail dealers paid
S347 $50 in special taxes: in the second
period they have paid SIG, $50. a decrease
period S2.67O was paid by those claiming
to sell the article taxable at u cent pound
and s69,914 by those who sold the colored
product.
The manufacturers in the first neriod
paid in $14,25O: in the second period thew
nave PAID $l5115, an increase of 1925 show
ing that the number of manufacturers has
increased.
Production Of Oleomargarina.
The product of oleomargarine during the
first period in pounds was IS, 1865, 94s: in the
second period it has been 5S. 556.O57. a. de-
crease of 26,5O9.991 pounds During the Sec
ond period the colored product, or that
paying 10 cents pound, was LOIS. 100
pounds, and uncolored. sc. 707, 94s pounds.
For the first few months after the law
went into erect the Oleomargarine bust.
liess was naturally upset, and there was
comparatively little business The indica-
tlons OF an increased product and of ability
10 deceive the internal revenue department
-, -, esaoe me law, Is found in the fact that
IN the month of March the product was
~ ii'UoUo pounds In round numbers. which
II continued. would show a larger product
.nan under the old law. when the output