The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1912-02-10
THE oLEo LAW
Probability That Changes Will Be
Made This Year


| had the time.
! went to Washington and found
the situation somewhat peculiar. the
oleomargarne manufacturers were
urging that since their product was
a pure. wholesome article Of food and
so recognized by the pure food and
drug act, that the law hindered the
legitimate expansion of their bust
ness.
The labor organizations, on account
of the present high prices of butter.
we're demanding the repeal OF the
law, having the mistaken notion that
its repeal would lower the price OF
butter. or at least enable them to pur-
chase substitute at low price. AL
lied with the above interests was the
internal revenue department. The
solicitor general Of internal revenue
affirmed that it was impossible to en-
force the law owing to its inherent
defects, and that the law in itself was
an inducement to fraud and furnish
ed the means of perpetrating such
fraud.
must confess that like most
farmers, was possessed with the idea
that the tax on oleomargarine was 10
cents a pound. ! found that the tax
under the Grout law was onefourth
of cent a pound, but the law spec
ifes that on cleo "artifcially" was
the joker.
The courts held that any essen
tial" ingredient which entered into
the composition of cleo, however
much it might color the product,
could not be held to be artificial"
color. Consequently the manufactur
ers of oleo sought for and employed
oils and ingredients which while en-
tering into the composition Of the
substance would produce the yellow
color. Furthermore, the tax on I'M
colored cleo being one-fourth Of
cent. and on colored 10 cents was the
great inducement to fraud The deal.
ers secured their licenses to sell
both colored and uncolored, purchas-
ed a few packages Of the colored on
which the tax of ten cents had been
paid, then purchased large quantities
OF uncolored which they colored them
selves and sold from the packages
which bore the stamp for colored
oleomargarine. They could easily do
this for the law specified that the
stamp on the package must not be
destroyed until such package was
empty. The result was that the deal
err never allowed the package to get
empty.
learned from the solicitor that OF
the 1lS million pounds Of oleo remov-
ed for consumption in the United
States last year. that only three per
cent paid tax as colored. while over
80 million pounds reached the con
sumer as colored oleomargarine and
probably a large per cent was sold as
butter. The tax collected from the
oleomargarine manufacturers was
| less than FIVE hundred thousand dol
lars. Had the law been enforced and
the tax of ten cents a pound on the
| S0,000,000 pounds which was sold as
colored oleomargarine been collected
you can readily see that the revenue
would have been over 100000,
The solicitor told US of case after
case where a conviction could not be
had although dealers were caught
with the uncolored product, the color.
ing matter and the appliances for
coloring in their possession. The
| Judges before whom the cases we're
brought claimed that the revenue de-
| partment must show the actual sale
| OF the identical piece colored. This.
| OF course, they could not do, hence
the cases we're dismissed.
| Having all the above facts before
me, and becoming convinced not only
that the law would be repealed or
amended, but that Il should at least
be amended, II seemed to me wiser to
help conclliate the different interests
and aid In securing the passage OF
law which would correct the defects
in the Grout law and safeguard the
| interests OF the butter maker. while
assisting the oleo manufacturer. Re
member that the latter was not the
man who was perpetrating the fraud
and was as anxious that the law be
enforced as was the dairy man.
The agricultural committee appoint
ed a subcommittee to draft new
law. This subcommittee FIRST agreed
that the butter maker was entitled to
protection from fraud In his market
and the oleo manufacturer was like
wise entitled TO the free and unhin-
dered market to sell his product for
what II is. This sub committee was
composed OF five members. one being
from our second congressional dis.
trict. Frank Plumley whose voice and
judgment carried great weight In
framing the bill which was finally re.
ported. The committee invited the
representatives OF the different inter.
ests 10 come before Il and, mingllng
In It's deliberations, to assist II in
framing a bill which should be salts.
factory
The olcomargarlne manufacturers
asked that the word 10 designate the
product be changed to "margarin."
this being the foreign name for the
product They also asked that they
be allowed to put Il In packages OF
from onehalf to 10 pounds In size.
The dairy interests insisted that the
size ~ tho ORIGINAL naci,@~e ehonid
not BIO larger than one half and one
pound, that the name should be deep
ly lndented In the substance. that the
strip stamp used on tobacco should
be so placed around the package as
TO effeotually seal II, and that this
stamp could be broken only by the
consumer This seemed TO ms 10 he
the most effectual method OF prevent.
ing the frauds heretofore practlced by
the dealer. and safeguarding the pro.