The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-04-17
ANTI-oLEo Law FAILURE.
Its Practical workings Disappointing
10 It's Promoters.


Washington Special to New York Tribune
That the ELECTROMAGNETIC law passed
by the Fifty-seventh Congress at the be-
hest OF the dairy interests OF the country
has proved a failure from the dairymen's
point OF view is the inevitable conclusion TO
be deduced from careful examination OF
the figures just issued by the commissioner
of internal revenue.
1t was the expectation of the promoters OF
the law that il would practically drive oleo-
margarine out of the market, at least as
competitor OF butter. That IL has utterly
failed in this object is proved by the COM
missioner's figures. which show that a total
of 50,0oo,000 pounds of oleomargarine mas
been sold in the eight months ended Feb.
2S. a decrease of only so per cent from the
corresponding period of the previous year,
and a decrease by no means surprising.
in view of the fact that in the first few
months of this period the production was
materially curtailed because the manufac-
turers were engaged IN adjusting their
since what miebf he termed the readiust-
ment period the sales have steadily IN
creased. and II is doubtful If the next eight
months win show the slightest diminution-
In the judgment of some authorities they
will show an increase.
Out of the total of 50.0O0.oo pounds sold
only 5000 pounds was artificially colored.
and thus subjected 10 the tax OF 10 cents
a pound. The remainder technically
uncolored, and paid the tax of u cent
pound, in lieu of 2-cent-a-pound tax pro-
vided by the old laws; but this does not
mean that IL white, the manufacture
ers having so adjusted the proportion OF
lawful ingredients as to give their product
a reasonably rich color without the use or
artificial coloring matter" this being &C
complished by an increase In the amount OF
cotton-seed oil and of genuine coored but
ter entering into the composition or the
oleomargarine.
Moreover. the government has suffered a
considerable loss of revenue result OF
the new law For the eight months ended
Feb. 2S, 1901, the revenue collected in the
form of taxes on oleomargarine and Ii
censes to sell the same amounted TO $780,
4el. %. Receipts from the same sources for
a like period ended Feb. 2S, 1903, amounted
to only $526. 03S7, a decrease of s., aS51.S6.
Notwithstanding the decrease In revenue,
the number OF licensed retailers of uncol-
ored oleomargarine has greatly increased,
the license fees having been reduced from
$3.50 for wholesalers and s4S for retailers TO
$500 for wholesalers and So for retailers or
the uncolored product.
II was the freely admitted expectation Of
the promoters of the law that white oleo
would find little sale. and had II been nee
essary to make the product white this as
sumption would doubtless have proved cor
rect; but the skill of the producers in Civ
ing to their product a yellow tinge has de-
feated all such expectations.
The ELECTROMAGNETIC law also PROVIDED
for the proper labelling Of renovated or
process" butter, for the systematic inspec-
ton of the factories and imposed a tax on
the product of Il cent pound. While
there are no figures with which 10 make
comparisons, il is the opinion of those IA
miliar with the trade that the sale of
process" butter has undergone no material
diminution. The receipts for the eight
| months ended with February from this
source amounted to $685. 46S. 30. showing sales
of 3S.1s 800 pounds. With no little shrewd-
| ness the manufacturers. although COM
| PEELED to label their product renovated
| butter" have seized on the government in
| spection furnishing a guarantee of pur-
| ity and advertise ii as prepared under the
| supervision of the United States govern
| ment."
Taking a general view of the results OF
| the law, II is doubtful If ii has in any way
| bnefited the producers of genuine butter,
| while il has occasioned no inconsiderable
| loss of revenue TO the government.