The Washington times., 1913-01-10
SETTLEMENT
INTERESTS HOUSE
liondolar Tax for Approximately 10 Per Cent
of Total Claimed
By JUDSON c. wELLIvER.

Alleging that the Treasury Depart
ment is preparing to settle huge oleo-
margarine fraud case on a basis that
will beat the Government cut of about
million dollars and at the same time
give immunity to people ~ho have vio-
lated the law. an investigation will be
started next week, through a House
committee. into the whcle affair.
1t is promised that some sensat tional
developments will follow. Tho Treasury
has indicated its perfect willingness TO
have a Congressional investigation, in
the belief that IL will give the coun-
try and Congress an understanding Of
the difficulties Of adminst sriny the olco
tax.
Meanwhile. Federal Judge Lands, IN
Chicago, has taken steps toward grand
jury investigation of the alleged frauos,
with the purpose of determining just
where the responsibility lies, and fol-
lowing up with vigorous action.
The case is one Of the most remarka-
BILE ever brought before the officials.
The oleo law provides for tax of one
fourth cent per pound on uncolored
oleo, and 10 cents on colored, the inten-
ton being to make sale OF the colored
pl oduct impossible. People want oleo,
If they use 1t, at least to look like
outter. 1t was supposed when the law
was passed that il eoloring was pre-
vented they would not buy II, and the
dairy interests would thus be protected.
Could Not Find "Color."
The present fraud charges date back
about two years. to the development
Of a process for refining oils. by which,
without the use of any coloring matter
whatever, they could be given the yel-
low tone desired by the oleo makers.
This process was secret, hut the re-
fined oils, with the fine yellow color,
We're taken to the big oleo manufacture
ers, with the explanation that at last
process had been found to get the
yellow color without violating the law.
II looked good to the oleo people.
They set their chemists at work to dis
covered IT, there was coloring matter,
and, according TO their statements,
found none. Then, before beginning to
use the OIL they brought Il to the
Treasury and explained the situation.
The Treasury chemists tried to find how
that oil was made yellow, but could
locate no co-oring in 1t.
The Bureau of Chemistry analyzed
it for coloring matter, and was Just
as unsuccessful Evidently, 1t was just
what its makers claimed: but II was
done by a secret process
Can We make 'uncolored' oleo with
this oil, and sell II under the one
fourth cent tax, despite its yellow
color?" demanded the oleo people.
The Treasury authority was non
plussed. Finally this proposal was
made:
You get the owners of this process
to let our scientific people go through
their factory and see exactly how it's
done. If they report that there is moth
ing violative of the law. then We'll con-
slider the matter further
Inspection Refused.
The oIeo people went home and asked
the oil refining concern to open its doors
to a Government inspection.
Nothing doing" retorted the oil peo-
Pile "Teis is a shcret process, worth
millions. We take no chance of 1t get
ting away from us. If the Government
can't find coloring matter. that's
enough; and it can't, because there is
none"
The oIeo people finally took the oil and
made yellow oleo with II. They mar
Eeted IL az .'uncolored," and paid the
one-fourth cent, instead of the ten-cent
tax: the treasury, however, stipulating
that they were to make good II coloring
matter turned up. The manufacturers
were so confident-it is alleged-of the
oil that they took the chance.
The chemists kept on worrying about
that oil. One day Treasury chemist