CHAPTER ELEVEN. OLEOMARGARINE; ADULTERATED BUTTER; PROCESS OR RENOVATED BUTTER. [Acts of August 2, 1886 (24 Stat., 209), and October 1, 1890 (25 Stat., 621), as amended by act of May 9, 1902 (32 Stat., 193).] 1. Butter defined. 2. Oleomargarine defined. 3 (amended). Special taxes. 4. Penalties for nonpayment of special taxes. 5. Manufacturer's notices, books, re- 6 (amended). Oleomargarine, how to 8 (amended). Tax, stamps, laws 9. Assessment of tax on oleomargarine when removed without stamps. 10. Tax on imported oleomargarine; penalty. Warehousing. 11. Penalty for receiving for sale unstamped oleomargarine. 12. Penalty for purchasing from a manufacturer who has not paid special tax; forfeiture. 13. Stamps on empty packages to be destroyed; penalty for failure; dealing in empty stamped packages. 14. Authority to employ chemists and microscopists. Commissioner to decide in contested cases; appeal. 15. Forfeiture of unstamped oleomargarine; penalty for defacing or removing stamps. 16. Oleomargarine removed for export. Sec. 17. Carrying on business as manufac- 19. Courts in which fines may be re- 20. Commissioner to make regulations. 21. Date when act goes into effect; stock on hand. Act of May 9, 1902: 4. Butter defined. Adulterated butter defined. Process or renovated butter defined. Notices, bonds. Inventories, signs. Manufacturers' packages. Caution label. Tax on adulterated and process or renovated butter. Stamps Sections relating to stamps for tobacco and snuff made applicable. Sections of act of August 2, 1886, made applicable to adulterated butter. 5. Inspection of renovated butter. Marking of process or renovated butter. Secretary of Agriculture to make regulations. 6. Wholesale dealers in oleomargarine, etc., to keep books and render returns. Penalty. 7. Date of taking effect. (Act of August 2, 1886 (24 Stat., 209), as ameded by acts of October 1, 1890 (26 Stat.. 621), and May 9, 1902 (32 Stat., 193), an act to make oleomargarne and other imitation dairy products subject to the laws of any State or Territory, or the District of Columbia, into which they are transported, and to change the tax on oleomargarine, and to impose a tax, provide for the inspection, and regulate the manufacture and sale of certain dairy products, and to amend an act entitled "An act defining butter, also imposing a tax upon and regulating the manufacture, sale, importation, and exportation of oleomargarine," approved August 2, 1886.) The act is on its face an act for levying taxes; its primary object must be assumed to be the raising of revenue. (In re Kollock, 165 U. S., 526.) Imitation dairy products subject One of the purposes of the law was to prevent the sale of oleomargarine as and for butter. (Cliff v. United States, 195 U. S., 159; T. D. 839; 18 Op. Atty. Gen., 489.) The oleomargarine act is not a complete act in itself. (United States v. Barnes, 222 U. S., 513; T. D. 1751.) SEC. 1. [Act of May 9, 1902 (32 Stat., 193).] That all to State laws. articles known as oleomargarine, butterine, imitation, process, renovated, or adulterated butter, or imitation cheese, or any substance in the semblance of butter or cheese not the usual product of the dairy and not made exclusively of pure and unadulterated milk or cream, transported into any State or Territory or the District of Columbia, and remaining therein for use, consumption, sale, or storage therein shall, upon the arrival within the limits of such State or Territory or the District of Columbia, be subject to the operation and effect of the laws of such State or Territory or the District of Columbia, enacted in the exercise of its police powers to the same extent and in the same manner as though such articles or substances had been produced in such State or Territory or the District of Columbia, and shall not be exempt there from by reason of being introduced therein. in original packages or otherwise. Butter, definition of. Oleomargarine defined. SEC. 1. [Act of August 2, 1886 (24 Stat., 209).] That for the purpose of this act the word "butter" shall be understood to mean the food product usually known as butter, and which is made exclusively from milk or cream, or both, with or without common salt, and with or without additional coloring matter. See section 4, act May 9, 1902, defining "butter," also "adulterated butter," and "process or renovated butter," page 174. SEC. 2. [Act of August 2, 1886 (24 Stat., 209).] That for the purposes of this act certain manufactured substances, certain extracts, and certain mixtures and compounds, including such mixtures and compounds with butter, shall be known and designated as "oleomargarine," namely: All substances heretofore known as oleomargarine, oleo, oleomargarine-oil, butterine, lardine, suine, and neutral; all mixtures and compounds of oleomargarine, oleo, oleomargarine-oil, butterine, lardine, suine, and neutral; all lard extracts and tallow extracts; and all mixtures and compounds of tallow, beef-fat, suet, lard, lard-oil, vegetable oil, annotto, and cther coloring matter, intestinal fat, and offal fat made in imitation or semblance of butter, or when so made, calculated or intended to be sold as butter or for butter. Interpretation of definition. (18 Op. Atty. Gen., 489; 32 Int. Rev. Rec., 333.) Addition of foreign fat, lard, or oil to butter produces oleomargarine. (33 Int. Rev. Rec., 397; Regulations No. 9, pp. 24, 88.) Taxability of mixtures or compounds of animal or vegetable oils or fats. (T. D. 1354.) violation by SEC. 4. [Act of August 2, 1886 (34 Stat., 209).] That Penalty for every person who carries on the business of a manu-manufacturer. facturer of oleomargarine without having paid the special tax therefor, as required by law, shall, besides being liable to the payment of the tax, be fined not less than one thousand and not more than five thousand dollars; and every person who carries on the business of a wholesale dealer in oleomargarine without having paid the special tax therefor, as required by law, shall, besides being liable to the payment of the tax, be fined not less than five hundred nor more than two thousand dollars; and every person who carries on the business of a retail dealer in oleomargarine without having paid the special tax therefor, as required by law, shall, besides being liable to the payment of the tax, be fined not less than fifty nor more than five hundred dollars for each and every offense. Penalty for failure to pay special tax. (United States v. Joyce, 138 Fed., 455; Morris r. United States, 161 Fed., 672; Hartman et al. v. United States, 168 Fed., 30, T. D. 1468; Vermont v. United States, 174 Fed., 792, T. D. 1579; United States v. Shipley, T. D. 1504; Enders r. United States, 187 Fed., 754, T. D. 1669.) Borrowing oleomargarine and returning amount borrowed is a barter not a sale. (Ewers r. Weaver, 183 Fed., 713; Weaver v. Ewers, 195 Fed., 247.) That Manufacturers' with notices, inventories, signs, bonds, etc. SEC. 5. [Act of August 2, 1886 (24 Stat., 210).] every manufacturer of oleomargarine shall file the collector of internal revenue of the district in which books, his manufactory is located such notices, inventories, and bonds, shall keep such books and render such returns of material and products, shall put up such signs and affix such number to his factory, and conduct his business under such surveillance of officers and agents as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may, by regulation, require. But the bond required of such manufacturer shall be with sureties satisfactory to the collector of internal revenue, and in a penal sum of not less than five thousand dollars; and the sum of said bond may be increased from time to time and additional sureties required at the discretion of the collector, or under instructions of the Commissioner of Internal Revenue. Regulations No. 9, T. D. 797, June 6, 1904; T. D. 906, June 20, 1905; and T. D. 1652, August 29, 1910. Power of attorney by manufacturers to agents to render returns. (T. D. 1263.) ages. SEC. 6. [Act of August 2, 1886 (24 Stat., 210, as Manufacturers' amended by act of October 1, 1918; 40 Stat., 1008.).] That original p a c kall oleomargarine shall be packed by the manufacturer thereof in firkins, tubs, or other wooden or paper packages not before used for that purpose, each containing not less than ten pounds, and marked, stamped, and branded as Retail dealers' packages. Penalties the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe; and all sales made by manufacturers of oleomargarine, and wholesale dealers in olemargarine shall be in original stamped packages. Retail dealers in oleomargarine must sell only from original stamped packages, in quantities not exceeding ten pounds, and shall pack the oleomargarine sold by them in suitable wooden or paper packages which shall be marked and branded as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe. Every person who knowingly sells or offers for sale, or delivers or offers to deliver, any oleomargarine in any other form than in new wooden or paper packages as above described, or who packs in any paskage any oleomargarine in any manner contrary to law, or who falsely brands any package or affixes a stamp on any package denoting a less amount of tax than that required by law shall be fined for each offense not more than one thousand dollars, and be imprisoned not more than two years. Original packages, no objection to using old boxes for material for new packages. (32 Int. Rev. Rec., 405.) Waxed cartons or containers for packing oleomargarine inside original packages permissible. (T. D. 1323 and T. D. 1563.) Crates made of wooden slats for holding waxed or enameled cardboard cartons within definition of "wooden packages" as original packages for oleomargarine. (T. D. 1613.) Power of Commissioner to make regulations as to marks and brands on packages of oleomargarine. (In re Kollock, 165 U. S., 526, 43 Int. Rev. Rec., 170; In re McCaully, 165 U. S.. 538. Prather v. United States, 9 App. Cases, D. C., 82; Wilkins v. United States, 96 Fed., 837; T. D. 21623.) Retail packages, marks and brands. (United States v. Ford, 50 Fed., 467, distinguishing United States v. Eaton, 144 U. S., 677; Dougherty v. United States, 108 Fed., 56 (T. D. 335), affirming 101 Fed., 439; United States v. Joyce, 138 Fed., 457; United States v. Knott, 151 Fed., 925; Morris v. United States, 161 Fed., 680.) Limit of 10 pounds retail sales. (United States v. Ripper, 178 Fed., 24; Ripper v. United States, 179 Fed., 497; T. D. 1609; Goll v. United States, 166 Fed., 419.) A party is liable for the sale by a clerk or employee of oleomargarine without its being in a stamped or wrapped package. (Prather v. United States, 9 App. Cases, D. C., 82.) Indictment under Sec. 6. (United States v. Lockwood, 164 Fed., 772; Goll v. United States, 166 Fed., 419.) It is permissible to join several offenses in one indictment setting forth the different acts in separate counts if of the same class. (Morris v. United States, 161 Fed., 672. See p. 642.) The indictment need not set out the regulations. (Wilkins v. United States, 96 Fed., 837; T. D. 21623.) Regulations to carry out provision to permit use of paper containers as original packages for oleomargarine.-Supplement 4, regulations No. 9, revised July, 1907. (T. Ds. 2764, SEC. 7. [Act of August 2, 1886 (24 Stat., 210).] That every manufacturer of oleomargarine shall securely affix, by pasting, on each package containing oleomargarine manufactured by him, a label on which shall be printed, besides the number of the manufactory and the district and State in which it is situated, these words: "NoticeThe manufacturer of the oleomargarine herein contained has complied with all the requirements of law. Every person is cautioned not to use either this package again or the stamp thereon again, nor to remove the contents of this package without destroying said stamp, under the penalty provided by law in such cases." Every manufacturer of oleomargarine who neglects to affix such label to any package containing oleomargarine made by him, or sold or offered for sale by or for him, and every person who removes any such label so affixed from any such package, shall be fined fifty dollars for each package in respect to which such offense is committed. Printing notice directly on paper or fiber containers permitted. (T. D. 2968.) Tax per pound. SEC. 8. [Act of August 2, 1886 (24 Stat., 210), as amended by sec. 3, act of May 9, 1902 (32 Stat., 193).] That upon oleomargarine which shall be manufactured and sold, or removed for consumption or use, there shall be assessed and collected a tax of ten cents per pound, to be paid by the manufacturer thereof; and any fractional part of a pound in a package shall be taxed as a pound: Provided, When oleomargarine is free from artificial coloration that causes it to look like butter of any shade of yellow said tax shall be one-fourth of one cent per pound. The tax levied by this section shall be represented stamps. by coupon stamps; and the provisions of existing laws governing the engraving, issue, sale, accountability, effacement, and destruction of stamps relating to tobacco and snuff, as far as applicable, are hereby made to apply to stamps provided for by this section. Use of an ingredient in minute quantities to impart yellow color subjects product to tax at rate of 10 cents per pound. (T. D. 564.) Use of an ingredient containing artificial coloring which imparts shade of yellow makes finished product taxable at 10 cents. (Regulations No. 9.) Butter artificially colored as an ingredient in oleomar- Palm oil constitutes artificial coloration. (Cliff v. United Palm oil. (Moxley r. Hertz, 216 U. S., 344, T. D. 1596; Coloring for customer after sale. (W. H. Zinn Co. v. Use of a rubber stamp for cancellation of tax-paid stamps See chapter under heading "Tobacco and Snuff" for laws relating to stamps. 140184°-20—28 Tax represented by coupon |