Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-12-17
INJURED BY O[EO LAW
SMALL cREAMERIEs HIT ~
srArurE. WHICH FAvoRs
LARGE SUFFER- CONCERNS.
CHANGES ARE CONTEMPLATED
BY MEMBERS OF CONGRESS
Larger Concerns Manage to N'eP
Within Limit Of Law-oIeo Makers
Not pe.irou. Of Having 10 Per Cent
Tax Removed, As it Enables Them
to Charge Higher Prices.

| Tax Removed, As il Enables Them
| TO Charge Higher Prices.
| washington, Dec. 17.-Officials IN
the internal revenue office have dls-
covered that unless the law regulae-
J, ing the sale of oleomargarine ana
adulterated butter can be chahseo'
there will follow gradual elimination
of all the small creamery and butter
making business Of the country anu
the consolidation Of that business III
! the hands of the large concerns. Inc
matter has been discussed this week
with members Of congress from several
dairy states, and IL is likely that steps
! will be taken during the present SEES
/ sion of congress to make the changes
which seem necessary If the smah
! manufacturers of butter and the small
creamery proprietors are TO remain III
business.
1t seems that the words "artihclaily
colored,' in the law, do not procure
the use Of certain oils that tend TO give
oleomargarine the same color as hae-
ural butter. Oleomargarine tsell 10
not a clear white, but has sNshe
tinge of its own. and the use OF pea
nut and other oils. it has been discoV-
cred, will give it pure butter coior'
without violating existing laws.
This situation helps explain why the
manufacturers OF oleomarsarAne -"
longer oppose the amendment or re-
lou that law,
with its tax of 10 cents pound on
oleo,nargarine colored to resemble but
ter. insures them larger price than
they otherwise would be able to get,
and at the same time affords a mar
gin wide enough to enable them 70
crowd out the cheaper grades OF put
ter. If the Decent tax were repea'e1
the price of oleomargarine would come
down correspondence. and with TINS
decrease would come decrease OF
profits. So the oleomargarine manu-
facturers who a session or two OF con
gress ago were doing all they coulo 10
prevent the specialization OF senti-
ment in favor of changing the law are
now Indifferent, OF want the Ia" u
retain in its present form.
Custom in Denmark.
The National Dairy association.
which Is the representative or tne
farmers in this matter, Is now seriously
considering the advisability OF asking
congress- TO repeal the Decent tax. and
in i,s place to substitute color stand
ards for butter with severe penalties
for violation That is the custom IN
Denmark. one Of the greatest European
butter countries. The contest between
butter and oleomargarin has been
thorough and decisive in that coun-
try. as the result Of years OF endeavor'
and now Denmark has system OF col
or standards. TO which both butter and
oieonarSar!n must conform. Inc con-
sumer Is thus protected, for a certain
shade of yellow means butter OF the
hignes; grade, another SHADE means
butter Of an inferior grade. while stu
another shade means oleomargarin.
+ A somewhat similar condition ar
fects what is known as adulterated
butter. that Is to say, butter which
contains more than 16 per cent OF
water Under the law is per cent OF
water in butter, or more. means that
butter is adulterated and the makers
Of such butter are required to take out
a license and pay tax. This is done
in order that the CHEAPEST grades Of
DuC1er may uOL IIids4uSi dNC 90 SiiN
higher grades; but under conditions
that now prevail, this law Is being ma
nipulated to the advantage Of the large
producers Of butter. and against that
Of the small creameres.
Keep Within the Law.
The large creameries. with abundant
capital are able to hire chemists and
to buy the most expensive machinery.
They watch their Cummings very care
fully, and permit water to go into but
ter to the extent Of 1873 per cent.
which brings them barely within the
meaning Of the law 1t is Of course
a profitable practice to carry as much
water as possible. for 1t is cheap and
not easily discovered by the consumers.
The small neutrality-suspicious.. how
ever. are unable to do this with exac-
titude. They can't afford to buy the
up-.o-date machinery, nor can they
hire chemists. for the cost OF a single
analysis would be equal to the value OF
tub OF butter. Nor can they afford
to pay the tax required from adul-
terated butter maker, for it is so large
that it would quickly drive them out
Of business
The result is that the small cream
cries are compelled. as measure OF
safety, to hold the water content down
to 10 to IL per cent. So it follows that
the extra care the small producers
must take, and the smaller amount Of
water content Of their output, increases
the cost OF production as compared with
the cost TO the large producers, and in
consequence 1t is said at the internal
revenue Offices that there is already q
marked decrease in the number Of these
small concerns. with the likelihood that
that decrease will continue, unless the
law can be changed. There has not
been for several years any increase in
the number Of small creameries, and
the decrease referred TO Is general. At
the same time the output Of TIA larger
concerns has been steadily increasing.
Rates Stimulate Business.
This increase Of the business Of the
large butter plants has been stimulated
by discriminating freight rates. which
explain why 1t is possible to ship cream
500 miles. or farther, and sell 1t in
competition with the cream OF the local
producer whose business Is small.