The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER WEDNESDAY, SEPTEMBER 8, 1915 THE MARGARINE TRADE.

Stratford Evening Post, Volume XXVIII, Issue 8, 8 September 1915, Page 4

The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER WEDNESDAY, SEPTEMBER 8, 1915 THE MARGARINE TRADE.

Sonic iiiterpjsting revelations' 1 to all buttei'-produeiujj: States are made in connection,.with, the margarine tirade in the T’-nited States of America, where I |oi} : the , past dozen years the law has allowed the coloring of margarine upon payment of a tax of so much per Ih to the '1 reasnry. How the law has been evaded in this rosy peel and the public exploited by the purveyors of butter couuterleits is shown in an interim report of a commission dipuointed by the American Government to invesjdgyjtwJibtVrlfUltte and the drastic steps that have been d|ivk?n by the .Treasury Repaid prosecuta 11 g frithd nlent/ ; man iitf afctli#rs and traders. In this report it'is stated that, so far iis^estjma^.can.be jiuptjle, the Federal Treasury has lost at least £b. 100.000Jn sttimp njulf'special taxes through these 1 rands during the !thirteen years. Thesn figures alone show that since 1902 more than 200,0(10.0001 bof Colored margarine have been manufactured and fraudulently sold as uneolored margarine or as butter. .It is believed that a great proportion of this product reached consumers as butter. This amount represents more than twice the average \ early consumption of both colored and uneolored margarine by the people of the I nited States since the ■present law came- into effect. Approximately 1 50,000,0001 h of this 200.-! 000,00011) were sold by ninfrgnrine manufacturers to dealers as uneolored margarine, and then, in many eases, sold to the ultimate consumer n s butter. The remaining 1d.000.0001h were made by butter manufacturers and sold as butter without the payment of any tax. The the report goes on to say. has already recovered and deposited in the Treasury !J 170,000. with the prospect of further very large collections. Fortytwo violators have been convicted this rear, of whom 29 have been sentenced ;o terms of imprisonment ranging 'mm one month lo three and a-hall rears; while total fines of £30.000 lave been imposed. These fines are exclusive of the recoveries mentioned •hove. .Many other flagrant violaairs were, at the time of the issue of he report, awaiting trial, and many smaller criminal case's were pending in the courts. While the facts set forth in the commissioner’s preliminary report relate primarily to mar-garine-frauds developed during the past year, the activities of the bureau during the past two full fiscal years have resulted in the detection of a total of approximately 00(10 frauds or illegal practices of this character. As a consequence of this rigid enforcement of the sequence of this rigid enforcement of the statute, the receipts of the Government from margarine |’ taxes during these two years have been the greatest in the history of the law, more than 21 per cent, of the total collections of margarine taxes I'l’om 1902 to 191 b being received during tbe fiscal years 191 I and 191 b. As instances of !he glaring frauds committed, some of the larger eases mentioned in tin* report may be quoted. One company, whose president and treasurer pleaded guilty, and were sentenced to one year and one day in gaol and to pav a tine oi £2OO each, and whose plant was seized, has been assessed £ I •”>().000. Another concern, six of whose officials and cm-j ployees pleaded guilty, and were hrm ! (

iin aggregate of ij(i()(), anil whose plant was seized, has hethi assessed £122.DU0. In St. Louis 34 persons were convicted. 27 being given prison sentences, and lined a total of £27,oUO. In another city one manufacturer was assessed by the commissioner £(j-lUU special and stamp taxes on account of the manufacture am! sale of margarine colored with tuiueric. which has been paid. Due, company whose president, treasurer; and secretary are under indictment on charges of oleomargarine frauds, and whose plant was seized, . has been assessed £183.000 for evaded taxes. Another concern, whose president and secretary-treasurer likewise have been indicted, and whose plant was seized, has been assessed £38,000. A company, five of whose officers or agents are under indictment, and whose plant was seized and sold l*y the Government. has been assessed £IIB,OOO. The Treasury Department will take steps to recover all taxes due in each case brought to light.