The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-07-13
Totals 100, 362,SO3 64,9oe,1S1 81

Totals .99, o62,SO3 "a, 9O6,1Sl ~, 4ob, 622
Officials of the internal revenue bureau
will not be interviewed on the reasons for
the vast decrease in the production of
imitation butter. The dairy people will
claim, and rightly, that it IS due to the
fact that the passage of the new law put
an almost effectual stop to the practice of
selling the imitation product as pure
creamery butter" and that people who
are now using cleo are buying it for what
1T is and not for dairy butter.
Looking for Natural yellow.
The manufacturers of the imitation
product have been trying ever since the
law was passed to get some natural prod.
-uct which may become part of the in
gradients of oleo and impart to it yellow
shade. and 1t is said that should they sue
coed they hope to see a boom in the trade,
They thought they had this colorng mat
ter in palm oil, but the commissioner of
internal revenue ruled that the use of
even small portion of that oil to impart
a shade of yellow was artificial" coIora-
ton and that cleo In which it was used
was taxable at 10 cents a pound. He has
recently sustained an assessment against
Chicago oleo maker who used palm oil
IN his product and it is believed that the
use OF this Oil will be discontinued unless
the manufacturers are willing to nav the
high tax rate on their output
Foresee1ng that they might be precluded
from using palm oil, cleo makers have
been looking around for some substance
which can be used to impart a. shade of
yellow, and which the internal revenue
department will accept as natural or I'M
artl1c1al coloration. They have met with
some success in using corn oil, which i'm
parts slight shade of yellow Some
makers are segregating from the fat used
as basis for cleo oil the product of Ger
tain steers which comes from around the
mr. hos sIz1
when rendered. The oleo made from this
lat has faint straw color and when nut
up In bricks looks not unlike butter IL
tho or course, 1t has not the deep shade
OF what Is known as June butter. It
IS predicted that the makers will keep try
ing until they find some substance which
Will 1mpart the yellow shade, and at the
same time pass muster as unuartifieia1
color1ng matter within the meaning of the
law.
City Trade Fails or.
The passage of the new law has worked
several changes in the markets where
oleomargarin is Sold, When the old Law
was IN effect the greater part Of the
product was sold in the large cities If
the working people and poor people who
could not afford to pay the usual price fol
creamery butter. Sometimes these peo
pie bought 1t as cleo, but more often the,
thought they were buying real butter ant
nv IAio AiiAIdhioH pIOuuCt. NOW, accord
Ing to reports to the department, the mar
ket for imitation butter has gravitated t,
the smaller towns and villages and tn
rural communities. The reasons asssigne,
for this are that city people will not hav
anything but highly colored article
looking askance at the white or slightl
tinted oleo they are offered by the deal
ers. On the other hand, in the rural com
munittes. white or slightly yellow, but
ter Is not rarity and there arises n
trouble in disposing of the oleo. It is es
tlmated that the city trade in oleo ha
fallen off so per cent, while the countr
demand for 1t has largely increased
In addition to the acceptance of tn
slightly tinged product in rural communi
ties, the question of the license tax on tn
retail dealer enters largely into the de
mand for it in these sections. Under til
old law, the retailer had to pay $4S a yea
for the privilege of selling oleo wlethe
colored or uncolored Now the dealer
the uncolored produce has to pay only
year. The country grower is willin
to go into the business Of selling cleo O
the basis of the small cost, for he figure
that If he does not create much of a dc
mand for the imitation product he will M
be much loser, and the probability is the
he will come out ahead at the end of
year, because Of the larger profit on ole
as against pure butter. His cupidity hs
been aroused and encouraged by tt
manufacturer. and the result has bee
that the trade lost in the cities has bee
regained in the smaller communities.
comparison of the number of retail dea
ers engaged in selling oleomargar
could not be obtained because there is /