For the tax

Against the tax

19. Mr. Harvey W. Brown, International Association of Machinists (p 217).

20. Representative Emanuel Celler, New York (p. 104).

21. Representative Olin E. Teague, Texas (p. 482).

22. Mrs. J. Fichtmueller, Jr., League of Women Voters, city of New York (p. 487).

23. Woman's Club of Chevy Chase, Maryland, Inc. (p 488).

"If the 10-cent tax on the coloring process were abolished so that oleo could be packaged, handled, and in every other way resemble butter, it is certain that this reduction in the cost of placing colored oleomargarine on the market would not be reflected in the price that the consumer pays for the product."

1. A. B. Tarwater, Plainview (Tex.) Cooperative, Inc. (p. 424).

2. Hugo H. Sommer, professor of dairy industry, University of Wisconsin (p. 406).

"If the color tax is repealed, the white or uncolored product will practically disappear from the market. When this happens, it is only reasonable to assume that oleomargarine can and would be priced only enough under legitimate butter to give it a price appeal."

1. Hassil E. Schenck, Indiana Farm Bureau, Inc. (p. 504).

Repeal of the excise taxes on both colored and uncolored margarine made exclusively from fats and oils of domestic origin probably would result in a price for the colored product about the same as for the uncolored.

1. Charles F. Brannan, Acting Secretary, Department of Agriculture (p. 2).

If Federal laws were changed to remove the 10-cents-per-pound tax which now exists on colored margarine, we would sell colored margarine at the same price as uncolored.

1. Kraft Foods Co., Chicago, Ill. (p. 505).

2. Capital City Products Co, Columbus, Ohio (p. 506).

3. Friedman Manufacturing Co., Chicago, Ill. (p. 506).

4. Kent Products, Inc., Kansas City, Mo. (p. 507).

5. Shedd-Bartush Foods, Inc., Detroit, Mich (p. 509).

6. Durkee Famous Foods, Cleveland, Ohio (p 514).

Any reduction in taxes accruing from the abolition of margarine taxes will be passed on to the consumer.

1. Miami Margarine Co., Cincinnati, Ohio (p. 506).

2. Churngold Corp., Cincinnati, Ohio (p. 508).

3. Wilson & Co., Inc., Chicago, Ill. (p. 509).

4 Mrs. Tucker's Foods, Inc., Sherman, Tex. (p. 510).

5. Vegetable Oil Products Co., Inc., Wilmington, Calif. (p. 511).

6. Standard Brands, Inc., New York, N. Y. (p. 514).

"You need have no concern regarding the possibility of margarine manufacturers trying to make exorbitant profits if the taxes were removed This is a highly competitive business; profit margins have always been very low, and competition will definitely keep them low regardless of any change in the laws."

For the tax

Against the tax

1. H. G. Bergdoll, Kraft Foods Co. (p. 505).

2. David H. Blanton, Jr., The Blanton Co., St. Louis (p. 513).

The Federal tax on colored oleomargarine is the consumers' protection against fraudulent sales of oleo as butter.

1. Minnesota Creameries' Association, resolution No. 1 (p. 138).

2. Golden Guernsey Dairy Cooperative, statement submitted by Charles W. Holman, secretary, Cooperative Milk Producers Federation (p. 283).

3. "Colored Oleo Sold as Butter," National Cooperative Milk Producers Federation, submitted by Charles W. Holman (p. 285).

4. Charles W. Holman (pp. 294, 295, 328).

5. H. W. Curtiss, Illinois Agricultural Association (p. 421).

6. Statement by Representative John Byrnes, Wisconsin, submitted by Representative Reid F. Murray, Wisconsin (p. 347).

7. Statement by Mrs. Stella E. Barker, Des Moines, Iowa (pp. 355, 358). 8. Kenzie S. Bagshaw, chairman, excutive committee, the National Grange (pp. 374-375).

9. Representative Charles R. Robertson, North Dakota (p. 485).

10. Harley J. Credicott president, Freeport Dairy Products Co. (p. 383). 11. Leonard E. Kopitzke Marion, Wis., president of the Wisconsin Cheese Makers Association (p. 401).

12. Hugo H. Sommer, professor of dairy industry, University of Wisconsin (p. 407).

Natural

The only way oleomargarine can be made yellow is by coloring it. oleo ends up in some shade other than yellow.

1. Statement by Representative John Byrnes, Wisconsin, submitted by Representative Reid F. Murray, Wisconsin (p. 347).

2. Statement by Wilson F. Douglass, director of laboratories, Cudahy Packing Co. (p. 303).

3. Harley J. Credicott, president, Freeport Dairy Products Co. (p. 383).

"The butter industry adopted the natural color of their product which during the lush grass season is yellow. To make it uniform the year round, coloring is added, at certain other seasons, to maintain this same yellow."

Consumers prefer a yellow spread because it is more appetizing than a white one. When butter is not yellow, color is added. Similarly, coloring of oleomargarine should be allowed without penalty.

1. Mr. A. Lee M. Wiggins, Under Secretary of the Treasury (p. 12).

Representative W. R. Poage, Texas (p. 27).

2. Mr. J. D. Henderson, American Association of Small Business (p. 123). 3. Mr. Ersel Walley, president, American Soybean Association (p. 127).

4. Mr. John W. Evans, American Soybean Association (p. 130).

5. Mr. Howard Roach, American Soybean Association (p. 133).

6. Mr. George M. Strayer, American Soybean Association (p. 135).

7. Mr. William Rhea Blake, National Cotton Council of America (p. 151). 8. Mr. Edgar C. 'Corry, Jr., American Veterans of World War II (p. 153). 9. Miss Jean L. Whitehill, Consumers Union (pp. 156-157).

10. Mrs. Dennis E. Jackson, Consumers Conference of Greater Cincinnati, Ohio (p. 194).

11. Senator Burnet R. Maybank, South Carolina (p. 201).

12. Mr. John N. Hatfield, American Hospital Association (p. 203).

13. Sylvia B. Gottlieb, Communications Workers of America (p. 205).

14. Mr. J. Roy Jones, commissioner of agriculture, South Carolina (p. 209).

For the tax

Against the tax

1. Hassil E. Schenck, Indiana Farm Bureau, Inc. (p. 504).

2. Hugo H. Sommer, professor of dairy industry, University of Wisconsin (p. 409).

3. Harley J. Credicott, president, Freeport Dairy Products Co. (p. 383).

4. Charles W. Holman, secretary, National Cooperative Milk Producers Federation (p. 327).

Without internal revenue regulation the sale of colored oleomargarine as real butter would most likely increase almost overnight.

1. Colored Oleo Sold as Butter, National Cooperative Milk Producers Federations, submitted by Charles W. Holman, secretary, National Cooperative Milk Producers Federation (p. 292).

In 1933 there were 102 retail dealers handling colored oleomargarine and in 1947 there were 5,102. In 1933, there were 103,501 who handled uncolored oleomargarine and in 1947 there were 265,984. I would be forced to conclude from this remarkable growth of handlers in that period that not only is it profitable for these dealers to handle the product or otherwise they would not pay the taxes, but that approximately one retail handler of food out of every two in the United States makes oleomargarine available in some form or another to the customers, so there cannot be a scarcity of retail dealers when over one-half of them in the United States are handling the product.

1. Charles W. Holman, National Cooperative Milk Producers Federation (p. 326).

"At present oleomargarine is readily available, as witness results of a study recently announced that more than 80 percent of the Nation's families are using oleomargarine."

Dealers in oleomargarine must pay burdensome license fees. There is also a mass of highly technical regulations and requirements which grocers must follow.

1. Tyre Taylor, National Association of Retail Grocers (pp. 162–163).

2. Edgar C. Corry, Jr., American Veterans of World War II (p. 154).

3. L. T. Newman, United States Wholesale Grocers' Association (p. 166). License fees on handling of oleomargarine favor larger firms over smaller ones.

1. Edgar C. Corry, Jr., American Veterans of World War II (p. 154).

2. Donald Montgomery, Congress of Industrial Organizations (p. 182).

License fees on handling of oleomargarine are discriminatory because small grocers cannot afford them and so do not carry the product.

1. Mrs. Florence Geiger, National Council of Jewish Women (p. 189). 2. Margaret F. Stone, National Women's Trade-Union League of America

3. Mrs. E. G. Chamberlain, National Federation of Settlements (p. 191).

4. Ella H. McNaughton, American Home Economics Association (p. 205). 5. Clifford Patton, National Association of Consumers (p. 212).

6. Lewis G. Hines, American Federation of Labor (p. 171).

7. Representative John L. McMillan, South Carolina (p. 382).

8. Benjamin C. Marsh, People's Lobby (p. 487).

76269-48

For the tax

Removal of oleomargarine taxes would weaken butter prices and jeopardize the dairy industry.

1. Representative Reid F. Murray, Wisconsin (pp. 13, 34).

2. Charles W .Holman, secretary, National Cooperative Milk Producers Federation (pp. 293-5, 301).

"We say, 'Let the public eat all the oleomargarine it wants.' That is fair competition. But we think the removal of the color laws would establish unfair competition for the dairy farmer."

1. Charles W. Holman (p. 343).

Ninety percent of the milk leaves the farms in fluid form but what it goes into depends upon the markets.

Against the tax

Oleomargarine taxes are discriminatory and tend to distort the competitive position of two domestic industries.

1. A. Lee M. Wiggins, Under Secretary of the Treasury (p. 8).

2. Representative W. R. Poage, Texas (pp. 27, 28, 31, 35).

3. Representative Stephen Pace, Georgia (p. 14).

4. Representative L. Mendel Rivers, South Carolina (p. 38).

5. Mr. Clark W. Patton, American Association of Small Business (p. 124). 6. Representative Omar Burleson, Texas (p. 104).

7. Representative Emanuel Celler, New York (p. 104).

8. Representative Ellsworth B. Foote, Connecticut (p. 105).

9. Mr. William Rhea Blake, National Cotton Council of America (p. 150).

10. Representative Brooks Hays, Arkansas (p. 107).

11. Mr. Tyre Taylor, National Association of Retail Grocers (p. 164).

12. Mrs. Rena Cohen, National League of Women Shoppers (p. 187).

13. Mrs. Florence Geiger, National Council of Jewish Women (p. 188).

14. Margaret F. Stone, National Women's Trade-Union League of America (p. 190).

15. Mrs. Dennis E. Jackson, Consumers Conference of Greater Cincinnati, Ohio (p. 193).

16. Representative Robert Nodar, Jr., New York (p. 200).

17. Sylvia B. Gottlieb, Communications Workers of America (p. 209).

18. Mr. J. Roy Jones, Commissioner of Agriculture, South Carolina (p. 208). 19. Mr. Joseph A. Clorety, Jr., American Veterans Committee (p. 215).

20. American Association of University Women, Washington, D. C. (p. 486). 21. Mrs. J. Fichtmueller, Jr., League of Women Voters, city of New York (p. 487).

22. Woman's Club of Chevy Chase, Md. (p. 488).

23. American Association of University Women, Wisconsin division (p. 490).

The dairy farmer receives more for his product when its ultimate use is as fluid milk rather than as butter.

result in a greater percentage of milk produced being used ultimately in fluid rather than in butter form.

1. Representative W. R. Poage, Texas (p. 29).

For the tax

If a bill is passed to repeal the Federal tax on colored oleomargarine, and supplemented by additional legislation repealing color prohibitions which exist in approximately 23 States it is quite certain that the number of dairy cows in the United States will be greatly reduced. There will most likely be a reduction in the price of butter and that will be reflected in a price reduction in cheese, evaporated milk, and fluid milk and cream for the table. The first reaction would be a decrease followed by relative scarcity.

1. Charles W. Holman, secretary, National Cooperative Milk Producers Association (p. 328).

The repeal of the Federal tax on colored oleomargarine would result in the reduction of the dairy farmers' income and curtail the total quantity of dairy products, thereby bringing additional ills upon the consumer both as to quantity and costs.

1. Charles W. Holman, secretary, National Cooperative Milk Producers Federation (p. 294).

2. Statement by Representative John Byrnes, Wisconsin, submitted by Representative Reid F. Murray, Wisconsin (p. 347).

Butter has long been the balance wheel of the dairy industry; it is not possible in a well-organized industry to produce fluid milk, evaporated milk, cheese, and other skim-milk products to provide an adequate diet without the stabilizing influence of butter.

1. Charles W. Holman, Secretary, National Cooperative Milk Producers Federation (p. 294).

There has been no important change in the production and sale of oleo nor in the relationship of oleomargarine and other competitive products, particularly butter, to warrant any change whatsoever in the Federal statutes.

1. Charles W. Holman, secretary, National Cooperative Milk Producers Federation (p. 293).

Replacing butter with vegetable oils is not to the American farmers' interest because the farmer gets a larger share of the consumer's dollar spent for butter than from the consumer's dollar spent for oleomargarine.

1. Charles W. Holman (pp. 298-299). 2. H. W. Curtis, Illinois Agricultural Association (p. 421).

3. "Oleo and Soybeans," from Hoard's Dairyman, March 10, 1948, submitted by Charles W. Holman (p. 344).

4. Mrs. Stella Barker, Des Moines, Iowa (p. 357).

5. Harley J. Credicott, president, Freeport Dairy Products Co. (p. 383).

Against the tax

The effects of the Federal tax on colored oleomargarine are similar to the effects of the State excise taxes. "Margarine manufacturers, vegetable-oil extractors and refiners, soybean and cotton farmers are injured, but dairy farmers and butter manufacturers are not materially benefited. And more important is the fact that low-income consumers are forced to pay an unwarranted premium in order to have margarine in its most attractive form (colored), although manufacture of the colored product is no more costly than manufacture of the uncolored product."

1. Publication by the Department of Commerce of Oleomargarine Studies Initiated by Paul T. Truitt, submitted by Charles W. Holman, secretary, National Cooperative Milk Producers Federation (p. 332).