subject to the taxation and other prohibitive regulations as oleomargarine both by Federal and State governments.

S. 1744 will remove some of these restrictions. It would repeal the Federal tax of $480 or $200 for wholesalers, $48 for the sale of yellow-colored margarine, and $6 for sale of uncolored margarine by the retailer. It would repeal the 10 cents per pound tax on colored margarine; the one-fourth cent per pound remaining.

We have gone on record as opposing the one-fourth cent per pound tax on all margarine as well as the $600 tax on manufacturers which this bill does not affect. We e see no reason for the inclusion of these taxes. However, we believe that this bill as now written will go a long way toward making this table fat available to communities of low-income persons.

Because of the obstructions by way of taxes mainly, many lowincome-group families are not able to buy this food product because of the tax restrictions on the wholesaler and retailer as well as the 10 cents per pound on colored margarine and of having to pay an excessive rate when we are able to buy it.

Thousands of the women whom we represent are in the low-income groups or in low fixed-income groups whom the rise in wages in war work has not affected. With the scarcity of butter and the rise in cost of butter they have had to pay prices they could not afford, or worse still, they have had to go without, because the wholesalers and retailers will not handle margarine as long as these tremendous taxes are imposed not only by the Federal Government but by State governments as well.

There are many places where margarine may be bought, but the housewife must add the coloring in her own kitchen, because of the great difference in the amount of tax for the sale of colored margarine. This process could be done better and more cheaply by the manufacturer. When this is done by the manufacturer the exorbitant tax must be paid by the consumer.

We believe that taxes as revenue should not be levied on food of any kind.

We as consumers do not wish to be deprived of the right to buy colored or uncolored margarine at any place. The present restrictive taxes make this impossible. We are further unalterably opposed to absorbing this unnecessary tax rate on a badly needed food when we are able to find a store selling margarine.

Senator ELLENDER. Do you use much margarine in your home? Mrs. JOHNSON. Well, at the moment, I am rooming, and I eat out, but when I am housekeeping I do use it.

Senator ELLENDER. Do you find any difference?

Mrs. JOHNSON. No; as a matter of fact if I did not know I was eating margarine I could never tell the difference.

Senator ELLENDER. I think that seems to be the situation with a lot of people. The way it is made now, it is hard to tell the difference between margarine and butter. Thank you.

All right, Mrs. Fowler. Will you give us your name in full, and your present occupation?

STATEMENT OF MRS. ELEANOR FOWLER, SECRETARY-TREASURER, CONGRESS OF WOMEN, AUXILIARY OF CONGRESS OF INDUSTRIAL ORGANIZATIONS, WASHINGTON, D. C.

Mrs. FOWLER. I am Eleanor Fowler. I am secretary-treasurer of the Congress of Women, Auxiliary of the C. I. O.

Senator ELLENDER. You have appeared before us two or three times in the past?

Mrs. FOWLER. Yes. You are aware, then, Senator, that we are an organization of women of families of C. I. O. members.

Senator ELLENDER. Yes.

Mrs. FOWLER. We have an annual convention, that is, the C. I. O. general convention, and at our last annual convention in September of 1943 we adopted a resolution urging the repeal of Federal taxes on margarine. We had delegates there from all over the country. They discussed the question of the Federal taxes on margarine, and they were unanimously of the opinion that those taxes should be repealed.

Senator ELLENDER. You heard Mr. Donald E. Montgomery testify?

Mrs. FOWLER. I did not hear Mr. Montgomery

Senator ELLENDER. Consumer counsel of the C. I. O. You agree with his statement?

Mrs. FOWLER. I agree wholeheartedly with the general points that have been made. I would like to say Senator, that I use margarine in my own home, and that I feel very strongly that the additional burden on the housewife of having to color each pound of margarine at home in order to make it more attractive to the family, is a completely wasteful process, and does waste a substantial part of the nutritive value. I would like to say finally this, that our Selective Service figures have shown that malnutrition is one of our national problems, and we feel these margarine taxes are one of the contributing factors, because they limit low-income families in getting a good nutritious food for their members.

Senator ELLENDER. That is a very good point. Thank you very much, Mrs. Fowler. Mrs. Chamberlain, will you state your name and your connection?

STATEMENT OF MRS. MARY STUART CHAMBERLAIN, REPRESENTING CONSUMER INTERESTS COMMITTEE, NATIONAL FEDERATION OF SETTLEMENTS, WASHINGTON, D. C.

Mrs. CHAMBERLAIN. I am a housewife. I am also representing the consumer interests committee of the National Federation of Settlements, which is an organization which has about 158 different settlement houses all over the United States. This is a national association, and it is supported by dues paid by the settlement houses.

Senator ELLENDER. Do you get any contributions from any other source?

Mrs. CHAMBERLAIN. We get them from the settlement houses, which in turn are supported by contributions of local community chests and interested individuals.

The National Federation of Settlements, which represents thousands of low-income families in cities throughout the country, is opposed to legislation which discriminates against the consumer, especially when it strikes at the family food budget.

At a recent meeting of the board of directors of the federation, resolution was passed unanimously favoring the law to repeal the Federal taxes on the production and sale of margarine, since, in the opinion of the members, these taxes are unjust and discriminatory, working undue hardship on the group of consumers who most need ready access to nutritious foods. At the seasons of the year when butter is beyond the reach of thousands of families, no blockade which prevents them from obtaining an equal substitute should be allowed to stand.

Senator ELLENDER. Thank you very much, Mrs. Chamberlain. If there are no more witnesses to be heard, we will stand in recess until tomorrow morning at 10 o'clock. Thank you very much for your attention. June 8,

(Thereupon, at 3:40 p. m., a recess was had until 10 a. m.,

1944.)

62295-44-7

TO REGULATE PRODUCTION AND DISTRIBUTION

OF MARGARINE

THURSDAY, JUNE 8, 1944

UNITED STATES SENATE,

SUBCOMMITTEE OF THE COMMITTEE
ON AGRICULTURE AND FORESTRY,

Washington, D. C.

The subcommittee met, pursuant to adjournment, at 10 a. m., in the committee room of the Committee on Agriculture and Forestry, 324 Senate Office Building, Senator Allen J. Ellender presiding.

There were present before the subcommittee: Oscar Johnston, president, National Cotton Council, Scott, Miss.; R. H. Rowe, executive vice president, United States Wholesale Grocers Association, Inc., Washington, D. C.; Mrs. Otto Hahn, president of the Homemakers' Forum, Inc., and honorary chairman of the New York City Federation of Women's Clubs, New York, N. Y.; Elbert S. Brigham, dairy farmer, former Commissioner of Agriculture of Vermont; president, National Life Insurance Co., Montpelier, Vt.; Dr. Harrison A. Ruehe, executive secretary, American Butter Institute, Chicago, Ill.; John D. Jones, Jr., representing Hoard's Dairyman, Fort Atkinson, Wis.; F. M. Skiver, representing Michigan State Department of Agriculture, Ann Arbor, Mich.

Senator ELLENDER. The committee will be in order. We have as our first witness this morning, Mr. Oscar Johnston, and for the record, Mr. Johnston, will you kindly give your name in full, and your present occupation, and any other information you wish to submit.

STATEMENT OF OSCAR JOHNSTON, PRESIDENT, NATIONAL COTTON COUNCIL, SCOTT, MISS.

Mr. JOHNSTON. My name is Oscar Johnston; place of residence, Scott, Bolivar County, Miss.; occupation, cotton farmer. I am also president of an organization known as the National Cotton Council of America, which is representative of the raw cotton industry, both fiber and seed.

For the record, I would like to say that the council is composed of delegate members of the six interests that make up the industry-the producer, the ginner, the warehouseman, the cotton merchant, the cottonseed crusher, and the cotton manufacturer or spinner. Those six interests select, through their several State organizations, delegate members to make up the body of the council.

The council consists of 244 delegate members representative of these interests, 46 farmers, 42 of the other handler groups, as they call them, ginners, warehousemen, crushers, and merchants, and 30 spinners.

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