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There are millions of people, like myself, who doubt that man can fully duplicate the products of nature and want to buy those products athough they cost more. They want the assurance that they get what they pay for. They want to know that it is a natural product, pure, unadulterated. They want to know that they are not paying for a natural product and getting one that is partially imitation.

Only by proper regulations governing the identity of these products can this be accomplished. These products must be so identified, that regardless of how, when, or where they are sold, the ultimate consumer will be guaranteed of getting the product for which they pay.

Hon. EUGENE D. MILLIKIN,

WESTERN JERSEY INTERIM COMMITTEE,
Tacoma, Wash., May 13, 1948.

Senate Office Building, Washington, D. C.

DEAR SENATOR MILLIKIN: The above committee, composed of western breeders representing their respective State Jersey cattle clubs, met in Portland, Oreg., April 30.

By motion passed unanimously, I was requested to write our western Senators urging them to protect the dairymen of their States against the repeal of the oleo tax.

Western dairymen hold the top four places in butterfat production per cow as shown in the records of the dairy heard improvement associations.

Dairying will do more to prevent soil erosion, retain soil fertility, and build up agriculture than any other farm commodity. It is an integral part of western reclamation.

History proves that dairying leads in the civilization of peoples. A study of the diets of contemporary nations bears this out.

Your attention is called to the Cudahy report and to the findings of the Armour Institute.

Your efforts in protecting the dairymen of the West will be greatly appreciated by all farmers in your State.

Sincerely,

CLIFF FAIRFAX. Secretary.

WISCONSIN CO-OP. CREAMERY ASSOCIATION,
Cumberland, Wis., May 13, 1948.

EUGENE D. MILLIKIN,

Chairman, Senate Finance Committee,
Senate Office Building, Washington, D. C.

DEAR MR. MILLIKIN: We appreciate very much the receiving of your telegram giving us the opportunity of expressing our views to your committee on the oleomargarine legislation.

I would like to express my argument against the repeal of the 10-cent tax on colored oleomargarine by stating my past experience and what may be expected if said tax is repealed.

For 16 years I worked as butter maker in some of the creameries in Wisconsin when the lands of Wisconsin were being grubbed of their stumps, changing from a lumbering business to a dairy State, now one of the largest, if not the largest dairy State in the United States. These were hard years for our dairy farmer, getting their farms cleared, building up their herds, and getting necessary buildings and equipment to produce a dairy product that has a reputation for quality throughout the United States. Do you, gentlemen of the committee, care to see a product, such as oleomargarine, colored in the semblance of butter and put on the market to disrupt what has been accomplished in the many past years? This would result if the 10-cent tax on colored oleomargarine is repealed, the public being easily deceived by oleomargarine being sold as butter.

Following my 16 years of butter making. I was appointed as dairy and food inspector for the State of Wisconsin. My duty was inspecting stores, meat markets, creameries, cheese factories, milk plants, and dairy farms. At this time, a great deal of oleomargarine was being sold in the State of Wisconsin. Thus a great deal of our time was taken up seeing that the laws were obeyed. We found oleomargarine being sold for butter, we found oleomargarine under the counters, not properly placarded, colored yellow and sold as butter. Hotels,

restaurants, and lumber camps served oleomargarine without proper placards being displayed. At this time most of the oleomargarine was made from animal fats and it was much easier to detect as it had a tallowy consistency when melted in the mouth. With the fats used in oleomargarine at the present time, the oils are softer and more like butterfat. Therefore it would be much harder for the consumer to tell the difference.

During the past 25 years I have been employed as field man for the Wisconsin Co-operative Creamery Association, district No. 4, working on quality improvement and marketing the product out of the member creameries.

A few years ago Mr. Paul McNutt had the definition of oleomargarine changed, even though it was protested by millions of signers on petitions from our dairy States. That, gentlemen of the committee, was the foundation for what the oleomargarine manufacturers are asking for in the repeal of the tax on oleomargarine. In the changing of the definition of oleomargarine, the manufacturers were allowed to use vitamins and a starter concentrate to give it a flavor comparable to butter. Now they spread propaganda that it is as nutritious as butter, All this has been done to make oleomargarine as near to butter as possible. Now they ask for a repeal of taxes and to allow them to color their oleomargarine yellow. Another step to deceive the public, allowing them to fraudulently sell it as butter.

There are many spreads on the market and we dairymen have not fought with the manufacturers and we have no fight with the oleomargarine manufacturers for selling oleomargarine in any color other than yellow and we feel that the 10-cent tax on colored oleomargarine is only a protection to the consumer. There is no objection to it being sold in its natural color, white. With white oleomargarine, the consumer is only taxed 4 cent per pound and we have no objection to any other color than yellow in the manufacture of oleomargarine.

The oleomargarine interests tell the soybean and cotton growers that butter hurts their product and that the oils from their product goes into the manufacture of oleomargarine. This may be true, that some of their product oils are used, but they do not tell them that the dairy farmer is using the byproduct of cottonseed and soybean in concentrates in dairy feed that is of more value than the oils. This is all propaganda to get the cotton and soybean farmers on their side. Copra oil from the coconut is the main ingredient in the manufacture of oleomargarine. If the tax on oleomargarine is repealed it would spell ruin to the dairy industry and result in fraud and deception to the American consumer. As to the color of butter, the natural color is yellow. In territories where the Jersey and Guernsey cattle predominate, fat at all times of the year is high yellow. For years we have not used any color in the manufacture of butter here.

Hoping your committeemen will see the great harm done to the dairy industry if the oleomargarine tax is repealed and give this legislation due consideration, I remain,

Respectfully yours,

S. B. COOK.

WISCONSIN STATE DEPARTMENT OF AGRICULTURE,
Madison 2, Wis., May 14, 1948.

Hon. EUGENE D. MILLIKIN,
Chairman, Senate Finance Committee, United States Senate,

Washington, D. C.

DEAR SENATOR: Many citizens who are interested in the welfare of the Nation have contacted Members of the Senate by mail, telephone, or telegraph requesting the opportunity to appear before your committee to discuss the results which would follow the removal of the Federal tax on colored oleomargarine. The scheduled hearing is drawing close and I have not been informed that such requests have been granted. May I, therefore, ask that this letter be made a part of the record of the committee hearing on the proposal?

To a large extent, the future economic welfare of our Nation is entrusted to you and your colleagues and I know that you are aware of that responsibility. This letter is written in an effort to be helpful to you in your deliberations. I shall try to focus attention on the fundamentals of the problem as it affects all of our citizens and to avoid separate agricultural considerations as such, as well as the superficial aspect on which the oleomargarine interests have placed so much emphasis.

THE PHYSICAL WELFARE OF THE PEOPLE OF THE NATION

The physical welfare of our citizens is the result of a nutritious diet. In this the protein and minerals of milk and meat are desirable and necessary.

For every pound of butterfat in milk there are also produced approximately 2.6 pounds of milk solids, not fat. This food is rich in protein and minerals and is generally recognized as an important source of these elements so vital to our diet. Loss of the butter market will mean a further curtailment of our dairy herds and as a consequence, the production of less milk. Thus 2.6 pounds of these milk solids will be lost irretrievably for every pound of butter which is replaced by oleomargarine. No one has indicated how this loss is to be replaced. I am confident that none of our dietitians would venture to say that our present diet is such that these proteins and minerals from milk are not necessary.

A reduced demand for milk and butterfat will mean less cattle of the dairy type. Statistics indicate that about 5 million dairy cows and approximately 10 to 11 million veal calves are slaughtered for meat annually. To the extent that the number of dairy cattle is reduced through the substitution of vegetable fat for milk fat, the beef and veal available to the American consumers will be reduced. The production of meat per capita has steadily declined during the past two decades. The dairy cow is our most efficient converter of roughage into food for man. Replacement by beef-type cows will not fully compensate for this loss of efficiency. With a further reduction of meat resulting from the loss of a market or butterfat, it would definitely appear that the consumers will be required to pay a higher price for meat, a new cost which would more than offset the tax saving on oleomargarine.

THE ECONOMIC WELFARE OF THE PEOPLE OF THE NATION

Our Government has recognized soil-erosion control as a necessary part of our economic welfare. In recent years we as a nation have become conscious of the need for conserving our soil resources if we are to remain a great nation. The fostering of a livestock program has been recognized as an integral part part of the soil-conservation program. We have already pointed out the efficiency of the dairy cow as a converter of the products of the grassland farming into human food. This efficient conversion is essential to successful grassland farming. Many millions of tax dollars are spent annually by Federal agencies in an effort to coserve our soil resources through a grassland livestock program. The replacement of butterfat with vegetable fat in our diet will make it difficult if not impossible, for the Nation to make further progress in grassland farming. The production of vegetable fats now largely used in the manufacture of oleomargarine lends itself to the rapid destruction and loss of our valuable top soils. It is impossible to justify tremendous appropriations to conserve soil resources and at the same time encourage a type of farming that destroys these resources.

THE BALANCE OF POPULATION AND NATIONAL DEFENSE

World War II is still fresh in our minds, and we cannot have forgotten the contribution which agriculture made to the winning of the war and is making to the winning of the peace. Yet statistics reveal that our rural population is declining at an alarming rate. Rural youth is moving to the cities which hold forth prospects of greater financial return and an opportunity to enjoy a standard of living that many of our farms cannot supply. The rural standard of living has lagged behind that of urban areas, as is shown by the absence of telephones, electric lights, running water, and other modern conveniences throughout rural areas. Churches and schools are other measuring sticks which may be used. The rural people have the same desires for the better things of life as do their city cousins. If the financial returns from farming permitted, they would have the same cultural advantages and physical conveniences as do people in the urban

areas.

By its very nature the dairy industry has been the most stable segment of agriculture. In periods of difficult times dairying has been a point of strength upon which the stability of agriculture as a whole has largely depended.

A reduction in the demand for butterfat will place a further financial handicap in the way of a segment of society which, despite recent advances, is still among the lowest income bracket. Presumably this will hasten the movement of people from the farm to the city.

We have experienced the need of a strong, sound agricultural economy during periods of national emergency. We must not now lend our aid to forces which

would further upset the necessary balance in our population structure. We must encourage that segment of our population which produces the food and fiber so necessary to our Nation, to "stay on the job."

PROTECTION AGAINST FRAUD AND DECEIT

The people of the Nation have a legal and moral right to be protected against cheap substitutes. This has been a basic philosophy in our State and Federal food and drug laws. Oleomargarine is the one product which has been permitted to be made with ingredients intended to make it taste, spread, melt, feel, and smell like the product it seeks to imitate butter. The purpose of the pending legislation is to remove the controls once considered necessary when the product is also made to look like butter.

The imitation will then be complete so far as the senses can discern. That fraud and deception may then be anticipated is clearly indicated by the fact that 23 States now prohibit the sale of colored oleomargarine and some foreign countries require the inclusion of some clearly distinguishing ingredient.

Each time butter has been able to prove its superiority, oleomargarine has been permitted to augment its composition to maintain its alleged nutritional equality. A consumer should not be required to submit a product to laboratory analysis to be sure he is getting butter if he wants it. The label does not remain with the product in public eating places. Citizens who want butter should be entitled to the same protection that is afforded citizens buying any other food.

Just this week it was necessary for this department to prosecute a Wisconsin restaurant for using oleomargarine as and for butter. We have also been informed of similar prosecutions in other States during recent months.

Oleomargarine proponents have approached this legislation largely through inducing the American public to think that the American dairymen are a selfish lot interested in protecting their financial returns.

The foregoing arguments relate to the entire population. I doubt that you will find any discussion of these fundamental issues in the vast expensive propaganda campaign being conducted by the oleomargarine manufacturers. Sincerely yours.

MILTON H. BUTTON, Director.

WISCONSIN STATE GRANGE,

May 15, 1948.

Hon. EUGENE D. MILLIKIN,

Chairman, Finance Committee, United States Senate,

Washington, D. C.

DEAR SENATOR: Since we are not being afforded an opportunity to appear before your committee to discuss the pending oleomargarine legislation, I desire to submit the following expressions of our views as a part of the committee hearing record on the bill.

DECEPTION

Most foods are protected from imitation products. Butter is given such protection in almost half of our States which prohibit its sale if colored yellow. Some other nations require oleomargarine to contain certain specified ingredients to make it easily recognizable. Our own Nation, until now, has seen fit to try to prevent the fraud of the sale of the product as butter by means of taxation. Other dairy products are protected against such fraud by the prohibition in our Federal filled milk act.

Since the tax law is the only protection granted butter, the repeal of that tax would legalize the deception of the consumer. It has been said that there can be no deception since the two products have been found to be approximate nutritive equivalents. More than 20 years ago it was also alleged that the products were then nutritionally equal. Since that time butter has been proved to be superior in several ways and on each such occasion the manufacturers of oleomargarine have been permitted to add synthetic ingredients in their attempt to maintain the alleged equality. We do not now concede that oleomargarine is equal to butterbut even if equality could be established, that should not be the basis for permitting imitation and deception.

The American dairy industry is not fearful of the competition of oleomargarine sold as oleomargarine. It does fear the results that will follow if all control is removed and the product is permitted to be used as and for butter.

It has been contended that the package labeling affords the dairy farmer complete protection. We are convinced that such contention is unsound. Yellow oleomargarine loses its identity as an imitation when it is taken from the package. When it is served in public eating places few people could distinguish it from genuine butter. The oleomargarine interests have succeeded in obtaining permission to practically imitate all of the characteristics of butter. Color alone has been the distinguishing feature to enable the consumer to see the difference.

The color distinction assured by present excise taxes should not be sacrificed, unless some other positive method of identification by all consumers is required. Laboratory analysis should not be necessary. If the excise taxes are repealed and no other means of identification is required, the results on our national economy will soon be recognized.

THE GENERAL PUBLIC WELFARE

Butter is one of the major outlets for the dairy industry. If because of permitted deception this market demand is lost, not only the dairy industry, but all of agriculture and our entire national economy will be affected.

Our dairy income is an important part of our total national income. Any substantial reduction in the returns of that phase of agriculture will soon be reflected in our economic structure. If it is not accompanied by an equal reduction in the price of things which agriculture needs, that segment of our population will again suffer severe reverses in its only recently improved financial position.

If we as a nation are to remain safe and secure if our population is to continue productive and prosperous—if agriculture is to have the cultural advantages that make for a full life, then every attempt must be made to maintain the present economic position of our farm people.

Even the consumers wanting oleomargarine should be interested in preserving a sound agriculture. We are confident that they will not look with favor upon legislation which encourages soil depleting crops and which destroys a soil conservation industry at a time when our Nation is expending vast sums to build up and preserve our topsoil.

The resulting saving to the consumer through the repeal of the excise taxes must be considered in the light of other probable increases in the cost of living which would follow such repeal. Even oleomargarine may be fairly expected to increase in price as the demand for that product is increased because of the permitted deception. We would venture the guess that such price increase will offset a substantial part of the tax saving.

The nutritive elements of the solids not fat portion of the milk from which the cream is removed for butter making will also have to be replaced in our diet. Such replacement will be possible only with other more expensive foods containing the same nutritional ingredients.

Higher prices will also be needed for meats if the supply is reduced because of the curtailment of our dairy herds. Replacement with beef type cattle is not the whole answer because science has demonstrated that such cattle are not as efficient as dairy cattle in the conversion of vegetable matter into food for man. This is evident because historically dairy cattle for slaughter sell at a lower price than do beef type cattle of like weight.

We sincerely hope that you and your committee will see fit not to recommend the excise tax repeal measure for passage.

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DEAR SIR: Your wire of May 11 received. Two day hearing-certainly not enough.

Appreciate invitation to submit written statement. Mine is brief, and as follows:

First, leave law as is, or

Second, remove the 10-cent tax on oleo but do not permit manufacturer to color yellow.

Yours truly,

W. D. WRIGHT PRODUCE Co,.
P. O. WRIGHT, Vice President.

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