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Senator FULBRIGHT. There again you run into the enormous difficulty of taking each pat of butter and wrapping it individually and doing that.
Senator Taft. The word "oleo" on the pat would hardly comply with the labeling requirements, because they have to set out yellow coloring matter and a number of other things.
Senator FULBRIGHT. This seems to us, and we have thought about it from all angles, probably the most practical way that would not definitely prohibit it. Of course, if they think that the danger is so great that it ought to be prohibited that is another matter. I think there is no serious contention that in the other field, that is, distribution through retail outlets, that there is any fraud or any likelihood of any.
The CHAIRMAN. Without any expression of opinion on the merits of what you propose here, it is good to see a constructive suggestion made in this hearing.
Senator FULBRIGHT. I thank the chairman. We have really thought as seriously as we could as to what practical way we could follow, and we also felt the precedent of the States which have been so close to this matter, is probably very persuasive; 40 of them do use this, and I may say one reason I do not set out the exact way that they staté this notice is in order not to require two notices, one under the State and one under the Federal law. I mean that was the reason. We considered that very seriously; should we say exactly how they do it. But that would run contra to those laws, and then you would have every restaurant having to have both the way we said they must be given the notice, and the way the State gives it.
Senator Tarr. How many States prohibit the sale of yellow margarine ?
Senator FULBRIGHT. Twenty-three I believe. I had that a moment ago. Was it not 23 in the testimony?
Senator Tart. They prohibit it?
Senator FULBRIGHT. It is 22 or 23. I have forgotten the exact number.
Senator Taft. They prohibit the sale by restaurants of colored margarine?
Senator FULBRIGHT. They prohibit the sale altogether to anybody.
Senator Tart. And then in addition to that, you have 40 States here that you say have this provision about the bill of fare.
Senator FULBRIGHT. That is, have requirements that their law requires that if you sell it.
Senator GEORGE. The Under Secretary of the Treasury said today the sale of colored oleomargarine is prohibited in 22 States. Three additional States impose a tax of 10 cents a pound on the colored product. In 23 States the sale of colored margarina is unfettered by the excise of State prohibition.
Senator Tart. I wondered how you fixed it at 40 States. You say 40 States have this provision about notice on the bill of fare. How do you fit that in with the 22 that prohibit it altogether?
Senator FULBRIGHT. I have here information, if the committee would like it. This is a compilation of the State requirements. For example, they have different ways. Take my home State, just a short paragraph. This is section 602 of Polk's Digest:
Any hotel, inn or restaurant or boarding-house keeper serving margarine must clearly and indelibly mark the plate holding it on some prominent part thereof
with the word oleomargarine or such other word as may properly describe the compound, puff pastry shortening not made with milk and cream excepted.”
They have different ways. Some say it has to be on the plate. Others I notice on the menu and others so on and so forth.
In order not to require double work on that part, we left that just saying in the language of the suggested amendment so that it is reasonably flexible, and yet gives notice.
The CHAIRMAN. Just as an expression of personal opinion, I believe that we should go the route of something of this kind. Whatever we do must be complete from the Federal standpoint, for obviously you cannot possibly adjust your Federal statute to all of the different requirements of the different States. The Federal statute must contain complete protection from the Federal standpoint if we adopt this kind of a device.
Senator FULGRIGHT. And I agree. I think this does it, and is in accord with the existing laws in the States.
For the information of the Senator, I would like to read his own State's requirement as a good illustration of a law quite similar to this.
The CHAIRMAN. May I interrupt with just one observation. I would like to suggest to the butter people that entirely without prejudice to their own contentions they give this amendment very close scrutiny, and if they wish, of course, feel at liberty to be critical of it.
Senator TAFT. Do I understand that under this amendment, white oleomargarine could be served without this requirement? Is that correct?
Senator FULBRIGHT. Yes. If it is oleomargarine containing artificial coloring—
Senator Taft. You say 40 States have a similar provision. If you have that many States, then some of them must simply prohibit the sale of white margarine without notice, because they prohibit tho sale of yellow altogether.
Senator FULBRIGHT. I think that is true. Some do prohibit, I believe, the sale of white oleomargarine. Does not Wisconsin prohibit the sale of white oleomargarine ?
Senator Tart. You claim that 40 States have a provision similar to this. If 22 prohibit it altogether, that makes 62 States, and it would not be possible to have 40 States having provisions similar to this, unless some of them are trying to require the labeling of white oleo. That is what I do not understand.
Senator FULBRIGHT. The 22 prohibitions do not relate solely to restaurants. That is a prohibition, general prohibition to anybody under any circumstances, that the Under Secretary was talking about, relating to sales of yellow margarine. Whereas the State laws requiring notice relate to serving white or yellow, so the 40 include the 22. Senator Taft. Have you a compilation of all of the States?
Senator FULBRIGHT. This is a compilation I was going to read, Colorado, which is a little nearer the one proposed. This is volume 2, chapter 49, section 23, Statutes Annotated. Whenever margarine is offered to the public for consumption as a butter substitute, the person, firm, or institution offering margarine shall prominently display a sign bearing the words “We serve oleomargarine" in plain Gothic letters at least 2 inches high.
So they are very specific in that. The law excludes other things.
The CHAIRMAN. The defect of that law on the face of it is that oleo is .not offered as a substitute.
Senator FULBRIGHT. Of course, that was their thought when they wrote it. I agree it is no longer. At the time that was written, in any case I was thinking only of the type of notice that your law requires.
Senator BARKLEY. How high are those letters!
Senator FULBRIGHT. Two inches. They have to be plain Gothic letters at least 2 inches high.
Senator BARKLEY. On what, the bill of fare?
Senator FULBRIGHT. This particular thing does not say. I would judge that that meant a placard and that they must hang up 2 inches high.
Senator BARKLEY. They have to put a placard up saying, "We serve oleomargarine.” Does that assume they do not serve butter?
Senator FULBRIGHT. I think that is probably the assumption, but at least they have given them notice.
Senator BARKLEY. They might serve both.
Senator FULBRIGHT. That is correct. But you are on notice that you may be getting margarine, of course. If you do not like it, you do not have to eat it or do not have to take it. At least, you are not being deceived.
The CHAIRMAN. It gives you the right to question the proprietor. Senator BUTLER. Would you file a copy of that?
Senator FULBRIGHT. Would the committee like to have this digest! I do not want to burden the record, but it has the various requirements, if the committee would like to have that.
The CHAIRMAN. It will be put in the record at this point. (The information is as follows:)
RESTRICTIONS ON THE SALE OF MARGARINE IN PUBLIC EATING PLACES
SEPTEMBER 30, 1947 United States
Hotels, boarding houses, restaurants, or other eating places when coloring and serving margarine to paying guests or employees are liable to Federal margarine manufacturer's annual license and fee of $600 a year; except: Cooperative clubs or fraternities; and when the margarine is cooked or mixed with food and thus loses its identity as a distinct article of food.
Where proprietors of public eating places serve margarine with meals, with or without special charge for it, they do not incur liability to the Federal retail margarine licenses and fees.
Notice that margarine is served need not be displayed or given in public eating places unless the law of the State requires it.
Information.-United States Bureau of Internal Revenue, district or deputy collectors. Regulations No. 9, issued by the Bureau. Alabama
Information.-State board of agriculture and industries. Arkansas
Any hotel, inn, restaurant, or boarding-house keeper serving margarine, must clearly and indelibly mark the plate holding it on some prominent part thereof with the word "oleomargarine” or such other word as may properly describe the compound. Puff-pastry shortening not made with milk or cream excepted (sec. 6020, Pope's Digest).
Information. ---Commission of revenues. California
Coloring.-It is unlawful to use, or to serve to patrons, guests, boarders, or inmates in any hotel, eating house, restaurant, public conveyance or boarding house any margarine which is colored in imitation of butter by whatever means the coloring is accomplished. The same applies to inmates in public or private hospital, asylum or eleemosynary or penal institution (sec. 579, Agriculture Code).
Notice to purchasers.—Oral: No one in charge of any bakery, hotel, boarding house, restaurant, saloon, lunch counter, or other place of public entertainment, and no person furnishing board for others than members of his own family, and no employee where such board is furnished as compensation or as a part of the compensation of any employee, shall place before any patron or employee, for use as food, any margarine without a verbal notification that such substance is a substitute for butter (sec. 584, Agricultural Code).
Written: No person shall sell any substance designed to be used as a substitute for butter unless he shall at the time of sale deliver to the purchaser a statement printed in plain roman type, not smaller than pica, stating the name of the product, the name and address of the manufacturer, the place where manufactured or put up, and the names and percentages of the various ingredients (sec. 583, Agricultural Code).
No one shall place before a patron or employee of a bakery or public eating place any margarine unless the same is accompanied by a copy of the statement. described in above (sec. 584, Agricultural Code).
Licenses.-Annual, fee $2 (sec. 612, Agricultural Code).
Information.—Director of Agriculture. Colorado
Notice to purchasers.Whenever margarine is offered to the public for consumption as a butter substitute, the person, firm, or institution so offering margarine shall prominently display a sign bearing the words “We Serve Oleomargarine" in plain Gothic letters at least 2 inches high. Law excludes puff-pastry shortening not made with milk or cream (vol. 2, ch. 49, sec. 23, Statutes Annotated).
Information.-State dairy commissioner. Connecticut
Coloring.–No one shall sell any margarine unless it is free from coloration and ingredients intended to cause it to look like butter (title 25, sec. 2446, General Statutes, 1930).
Notice to purchasers.—No keeper of a hotel, boarding house, or restaurant shall furnish a guest with margarine or food containing it, unless he shall maintain in plain sight of all guests sitting at tables where food is served, a sign bearing in plain black Roman letters, not less than 2 inches wide and 4 inches long, on a white ground, the words, “Oleomargarine used here."
NOTE.-All signs prescribed above shall be provided by the dairy and food commissioner and shall be paid for by the parties receiving the same, at the actual cost (title 25, sec. 2448, General Statutes, 1930).
License.--Hotel, restaurant, dining room or bakery, $3 per year (title 25, sec. 2445, General Statutes, 1930). Licenses expire June 30.
Information.—Dairy and food commissioner. Delaware
Coloring.—No one shall sell any margarine unless it is free from coloration or ingredients that cause it to look like yellow butter (ch. 100, sec. 112, Revised Code of Delaware, 1935).
Information.—Dairy food commissioner.
Notice to purchasers.-Placards and signs: Every person in charge of any place where food or drink is sold who uses or serves “imitation butter” shall display at all times opposite each table or place of service a placard with the words "Imitation butter served here” printed in black Roman letters not less than 3 inches in height and 2 inches in width, on a white card 12 by 22 inches in size (title XXXI, sec. 502.07, Florida Statutes, 1941).
Oral: It is unlawful for any keeper of any hotel, boarding house, restaurant, lunch, or sandwich stand or counter knowingly and willfully without giving notice to guests at the table to supply margarine or other spurious preparation purporting to be butter for the use of guests (title XXXI., sec. 511.40, Florida Statutes, 1941).
Information.—Commissioner of agriculture.
Information.-State department of agriculture. Idaho
Coloring.—No one shall sell margarine unless it is free from coloration or ingredients that cause it to resemble butter.
Margarine which is not free from coloration or ingredients that cause it to resemble butter shall not be used in any hotel, eating house, restaurant, public conveyance, or boarding house (title 36, sec. 36–429, Idaho Code).
Notice to purchasers.-Placards or signs: Margarine may be used by the pa. trons, guests, boarders, or inmates of any hotel, eating house, restaurant, public conveyance, or boarding house when signs are displayed in a conspicuous place that may be easily read from any part of the room (title 36, sec. 36-429, Idaho Code).
Information.-Department of public health. Illinois
Coloring.—No person shall coat, powder, or color with annatto or any coloring matter any “imitation butter” or “substitute for butter," whereby it will be made to resemble butter.
No one shall combine any animal or vegetable fat or oil with butter or combine therewith or with animal any substance for the purpose or with the effect of imparting thereto a yellow color so that such substitute shall resemble yellow or any shade of genuine yellow butter.
No one shall produce any substance in imitation or semblance of natural butter, and no one shall, or keep for sale, or offer for sale any "imitation butter" made in violation of the law, whether such "imitation butter" shall be made in the S'ate or elsewhere (ch. 38, sec. 31, Illinois Rev. Stat., 1945).
Statements to purchasers.—Oral: It is unlawful to sell or offer for sale any "'imitation butter” without informing the purchaser thereof that the substance is imitation butter (ch. 38, sec. 33, Illinois Rev. Stat., 1945).
No person shall sell, or offer for sale, or order, or permit to be sold, or offered 'for sale, any butter or cheese into the composition of which margarine has entered without at the same time informing the buyer of the fact and the proportions in which such margarine has entered into its composition (ch. 38, sec. 22, Illinois Rev. Stat., 1945).
Information.-Division of foods and dairies of the department of agriculture and labor. Indiana
Notice to purchasers.—Every person conducting a public eating place where margarine is served must display signs bearing the words "Oleomargarine served here” on at least 2 sides of the room, in such manner that they may be easily and readily seen and read from all tables and counters on which food is served.
The legend “Oleomargarine served here” shall be printed in böld-faced black Gothic type not less than 2 inches high.
Both of the above do not apply where margarine is used in the preparation of food but only where it is served on the table or counter or other eating place (title 35, sec. 35–1404, Indiana Statutes).
Statements to purchasers. Written: Marking of dishes or menus in eating places: Every person conducting a public eating place where margarine is served shall print in plain English in a conspicuous place on the bill of fare or menu, the words “Oleomargarine served here."
The type in which the legend “Oleomargarine served here” is printed shall not be less conspicuous or smaller in size than that used in the remainder of the bill of fare or menu.
Both of the above do not apply where margarine is only used in the preparation of food served therein, but applies only where it is served on the table or counter or other eating place (title 35, sec. 35–1404, Indiana Statutes).
Information.-State board of health. Iowa
Coloring.—No “imitation butter” shall be colored with any substance.
No “imitation butter” shall be made by mixing animal fats, vegetable oils, or other substances for the purpose or with the effect of imparting to the mixture the color of yellow butter (title X, ch. 148, sec. 3063, Iowa Code, 1939).