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TABLE 2.-Collections from oleomargarine taxes, fiscal years 1934–49
[Thousands of dollars)
1 Not available.
Source: Annual reports of the Commissioner of Internal Revenue and the Budget of the United States
TABLE 3.–Production and withdrawals of colored and uncolored oleomargarine, fiscal years 1934–47, and first 8 months of fiscal year 1948
[Thousands of pounds)
For use of
1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1947 2 1948 2
Source: Annual Reports of the Commissioner of Internal Revenue and Internal Revenue Bulletin. 1 Less than 500 pounds. 28 months. 3 Not available.
TABLE 4.-State oleomargarine excises and license fees, May 15, 1948
1 Manufacture or sale of colored margarine prohibited.
2 Tax applies to oleomargarine (colored or uncolored) not made from oils and fats (specifically named by the statute that are largely derived from domestic materials.
3 Idaho also prohibits the manufacture or sale of colored margarine.
4 Minnesota's tax applies to oleomargarine not containing a minimum percentage (65 percent) of animal fats, as well as that made of foreign materials. Wyoming's tax applies only to vegetable oleomargarine (containing 20 percent or less of animal fats).
5 The license is for 2 years.
6 Tennessee's tax applies to all colored margarine, regardless of ingredients. Uncolored margarine is exempt if made from domestic oils and fats.
Senator BARKLEY. May I ask you whether your figure of 40 and 90 as comparative prices of oleomargarine and butter, whether that includes the tax of 10 cents per pound? I suppose you are talking at the retail price. Does that include the tax? Mr. Wiggins. We are talking about retail prices, including the tax.
Senator BARKLEY. That includes the tax, whether levied on the colored or otherwise.
Mr. WIGGINS. There is very little of the colored sold. They sell it white.
Senator BARKLEY. Yes, I know.
Senator BARKLEY. Yes, I know. They buy the coloring or furnish it when you buy the white, and color it at home.
Mr. WIGGINS. That is correct.
Senator BARKLEY. Or on the way home.
Senator BUTLER. Mr. Chairman, Mr. Wiggins made a remark about the very few cases that have been brought by the Government for violation of the tax regulations.
Mr. WIGGINS. Yes.
Senator BUTLER. As an indication that it is not needed. I do not think we need to enter into any argument here, but I wonder if that would not be an illustration of the effectiveness of the tax that has been in effect all of the time, rather than otherwise.
Mr. WIGGINS. I think each one can draw his own conclusions. My opinion is that the Pure Food and Drug Act takes care of the type of violations that I think the Congress had in mind, when it originally imposed the tax.
The CHAIRMAN. Any further questions?
The CHAIRMAN. Congressman Rivers, we will be very glad to hear from you. Will you identify yourself! STATEMENT OF HON. S. MENDEL RIVERS, A REPRESENTATIVE
IN CONGRESS FROM THE STATE OF SOUTH CAROLINA
Mr. RIVERS. My name is S. Mendel Rivers, Member of the House from South Carolina.
Mr. Chairman, it is quite a difficult assignment to follow my two distinguished South Carolinians who preceded me here before this splendid committee, my own colleague and senior Senator, the Honorable Mr. Maybank, who has worked hard on this subject, and who has introduced legislation, proposed legislation on numerous occasions, also our splendid Carolinian Mr. A. L. M. Wiggins, who did such a splendid job in the Treasury Department. I need not say anything about this other fine Senator we have over here who has likewise helped us a great deal on this subject.
Mr. Chairman, I am grateful for this opportunity to appear on my bill, H. R. 2245, which passed the House on the 20th of April by such a large vote, as you recall 260 to 107. My bill passed the House without one single amendment, saving and except the effective date, which was necessary to bring the bill, having been introduced each year, up to date, and the effective date of which would be July 1 of
My bill is simple and to the point. Beginning on July 1 of this year, the tax on margarine is repealed. The bill, of course, does not affect the duty imposed by paragraph 7 of the Tariff Act of 1930 on imports of margarine, currently fixed at 7 cents per pound by the Geneva agreement.
This duty will remain in effect, as well as the tax of 15 cents per pound imposed by section 2306 of the Internal Revenue Code on margarine imported from foreign countries.
This is my opinion, and that of the congressional committee over there which helped me prepare the act which I am prepared to say now the passage of the bill in my opinion would not repeal certain sections of the Internal Revenue Code relating to manufacturers and
dealers of margarine under section 2302 of the Internal Revenue Code, for example, which requires the manufacturer to file a bond to package and mark margarine in certain prescribed ways.
Neither would it affect the Pure Food and Drug Act laws applicable to this product or the statutes under which the Federal Trade Commission operates.
The CHAIRMAN. I hope that someone during the hearing will introduce statistics on the imports of oleomargarine and constituent materials.
(The information referred to appears on p. 50.) Mr. Rivers. Thank you, sir.
My bill merely places the manufacture and sale of margarine on the same footing with other manufacturers of wholesale and edible products. Progress knows no time salient or season. The progress made in the manufacture of margarine has been so rapid that today margarine is no longer a substitute for butter. It is the coequal of butter.
For the information of this distinguished committee, I have asked one of the largest chemical houses in the Nation to prepare for me a report of ingredients commonly used in margarine, and I have that information for the record here, Mr. Chairman, also along with the report from the Treasury Department as far back as the year 1942, and if you want me to, I can tell you just what margarine contains, or I can place that in the record, even to the coloring of it. A lot of people do not know what is the coloring of margarine or the coloring used in butter.
The CHAIRMAN. I think it would be well to have some information on that.
Mr. RIVERS. All right, sir.
It contains fats and oils per thousand pounds, 346,346,000, that is in thousands of pounds, or percentage of 79.4; milk, a percentage of 17.2; salt, 2.98; glycerin derivatives, 0.231; and lecithin, 0.231.
Senator BARKLEY. What is that?
The milk is used to impart body and flavor. The same cultures are used on pasteurizing milk. This report came from a chemical house in this Nation. I can also give you the name of that, if
you care for it.
The CHAIRMAN. I think it would be well to give us the name.
Mr. RIVERS. Fritshie Co. of New York. I can give you the address later on.
That is the same used in the processing of butter and the same sanitary precautions are maintained. The culture developed the butter flavor. Natural butter made from sweet cream is lacking in proper flavor. Salt is used to stop the action of bacteria used in the milk culture. When the proper amount of flavor is developed, salt is added to the culture. This is also done in the manufacture of salted butter, which will remain stable over a longer period of time than will the unsalted butter.
Glycerin derivatives are used to stabilize the aqueous emulsion of fats which is margarine. Without such stabilization margarine is less stable than natural butter which on melting will not separate, and particularly will not splatter on frying. Such glycerin derivatives are closely related to natural fats, are nontoxic, and are approved for use in foods.
Lecithin, obtained principally from soybean oil, is used as a stabilizer. It is a natural derivative and a component of vegetable oils in varying proportions.
Sodium benzoate, an approved preservative, is sometimes used to the extent of not more than one-tenth of 1 percent. If used, a declaration must be made on the label.
Vitamin concentrates, principally vitamin A, are used in order to increase the nutrient value of margarine. If added, the margarine must by law contain not less than 5,000 U. S. P. units of vitamin A per pound.
Margarine therefore may have more vitamin potency than natural butter, and in general more than so-called winter butter, which as you know is colored about 8 months out of the year, and is very low in vitamin content. The cows cannot get the green food.
This includes color and flavor. Colors are usually oil-soluble colors, certified as to their stability for foods by the United States Department of Agriculture. These colors are known as F, D, and C, Yellow No. 3, and Yellow No. 4. The yellow color is obtained from annotto seed, which is used to colored butter, and may also be used.
Senator BUTLER. Is this part of the statement of the chemical company that made the analysis?
Mr. RIVERS. They got this from the Department of Agriculture, and from their own analyses.
Senator BUTLER. The part you are reading now, is this still a quote from the report you got from the chemical company!
Mr. RIVERS. Yes, sir. The only permitted flavor is diacetyl, which is the same product as obtained from the cream in making butter, and is chemically identical with the chief flavor constituent of butter, and that is the report.
Now, scientists, and I am glad to say, Mr. Chairman, that my good friend, Dr. Anton Carlson is here this morning; I do not know whether he is scheduled to testify; I assume he is; but I will submit for the record a very fine writing by him and Dr. Larry Leichenger, and Dr. George Eisenberg on margarine and growing children.
(The information referred to follows.)
[Reprinted from the Journal of the American Medical Association, February 7, 1948, vol. 136, pp. 388–391 ; copyright, 1948, by American Medical Association]
MARGARINE AND THE GROWTH OF CHILDREN
Leichenger, M. D., George Eisenberg, M. D., and Anton J. Carlson, Ph. D.,
M. D., Chicago
This study was undertaken to determine whether there is any nutritional difference, as shown by increases in height and weight in significantly large groups of children, when the source of supplementary table fat in their diets is vegetable (margarine) rather than animal (butter).
For a number of years there has been some controversy among nutritionists and other workers in the field of fat nutrition regarding the relative merits of animal and vegetable fats in the human diet. A great deal of experimentation