HEARINGS BEFORE THE COMMITTEE ON AGRICULTURE HOUSE OF REPRESENTATIVES SEVENTY-EIGHTH CONGRESS FIRST SESSION ON H. R. 2400 A BILL TO ELIMINATE THE PROVISIONS OF THE INTERNAL 92417 OCTOBER 26 TO NOVEMBER 3, 1943 Printed for the use of the Committee on Agriculture UNITED STATES WASHINGTON: 1943 Boice, Frank, president, American National Live Stock Association, Carlson, Dr. Anton J., University of Chicago- Chamberlain, Mrs. E. G., National Federation of Settlements, New Clark, James Russell, American Hospital Association, Inc., Chicago, 240 Eldridge, K. C., Eldridge Food Sales, Portland, Oreg- 162 Garen, Mrs. Annie___ 289 Gimlet, F. E., prospector, Leadville, Colo 288 Guckenburger, August F., New York State Food Merchants As- Gunderson, Dr. Frank L., National Research Council, Washington, Henry, Charles G., National Cotton Council, Memphis, Tenn... Hines, Lewis G., national legislative representative of American Federation of Labor, Washington, D. C Hopkins, Arthur G., National Association of Margarine Manu- Johnson, Mrs. Mary Wright, District of Columbia Federation of Johnson, Mrs. Thomasina Walker, National Nonpartisan Council on 232 31 59, 91, 110 274 273 Moloney, John F., National Cottonseed Products Association, Mem- 200 Montgomery, Donald E., consumers' counsel, United Automobile Montevam, William T., National Catholic Conference of Charities, 184 Rayburn, Hon. Sam., Speaker of the House of Representatives__ 3 139 Rogers, George, New York State Retail Food Merchants, Rochester, 128 Rogers, Watson, president, National Retail Grocers Secretaries 192 OPPONENTS Barlow, Floyd S., Ohio Guernsey Breeders' Association, Wooster, Boatwright, Mrs. R. G., Virginia Federation of Women's Clubs, Brenckman, Fred, Washington representative of the National Grange. Brigham, Hon. Elbert S., Montpelier, Vt., former United States Representative from Vermont___ Cheney, Mrs. Edith C., member, New York State Assembly, Corning, 426 Fifer, Russell, Ohio Dairy Industry Wartime Committee, Columbus, 412 Ferguson, Mrs. Meade, Virginia Federation of Women's Clubs, Rich- 425 Holman, Charles W., National Cooperative Milk Producers' Federa- 321 Iverson, Dr. C. A., Iowa State College, Ames, Iowa.. Minnesota Dairy Industry Committee, St. Paul, Minn. Meyer, Scott, chairman, United Dairy Committee, Hannibal, Mo Moscrip, W. S., president, Holstein-Friesian Association, Lake Elmo, Musser, Karl B., American Guernsey Cattle Club, Peterboro, N. H.... 409 429 Nisbet, J. C., American Jersey Cattle Club, New York City. Perdue, William O., Pure Milk Products Cooperative, Fond du Lac, Wis. Prior, Dr. Robert, Washington State Dairy Products Commission, 416 425 Sugden, Mrs. George, president, Minnesota State Federation of 395 Zimmerman, G. J., Nebraska Cooperative Creameries, Omaha, Nebṛ-- 408 TUESDAY, OCTOBER 26, 1943 HOUSE OF REPRESENTATIVES, The committee met at 10 a. m., Hon. H. P. Fulmer (chairman) presiding. The CHAIRMAN. The committee will come to order. The committee has met this morning to take up H. R. 2400. [H. R. 2400, 78th Cong., 1st sess.] A BILL To eliminate the provisions of the Internal Revenue Code relating to taxes on domestic margarine and relating to license taxes upon manufacturers, wholesalers, and retailers of margarine Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That sections 2300, 2301, 2302, 2303, 2304, 2305, 2307, 2309 (c), 2311, 2312, 3200, 3201, and 3202 of the Internal Revenue Code are repealed. SEC. 2. Section 2306 of the Internal Revenue Code (U. S. C., 1940 edition, title 26, sec. 2306), is amended to read as follows: "SEC. 2306. TAX ON IMPORTED MARGARINE. "All oleomargarine imported from foreign countries shall, in addition to any import duty imposed on the same, pay an internal revenue tax of 15 cents per pound, such tax to be represented by coupon stamps. The stamps shall be affixed and cancelled by the owner or importer of the oleomargarine while it is in the custody of the proper customhouse officers; and the oleomargarine shall not pass out of the custody of said officers until the stamps have been so affixed and cancelled, but shall be put up in wooden packages, each containing not less than ten pounds before the stamps are affixed. Whenever it is necessary to take any oleomargarine so imported to any place other than the public stores of the United States for the purpose of affixing and cancelling such stamps, the collector of customs of the port where such oleomargarine is entered shall designate a bonded warehouse to which it shall be taken, under the control of such customs officer as such collector may direct." SEC. 3. Section 2308 of the Internal Revenue Code (U. S. C., 1940 edition, title 26, sec. 2308), is amended to read as follows: "SEC. 2308. PENALTIES. "(a) REMOVAL OR DEFACEMENT OF STAMPS, MARKS, OR BRANDS.--Any person who shall willfully remove or deface the stamps, marks, or brands on a package containing oleomargarine taxed as provided in this subchapter shall be guilty of a misdemeanor, and shall be punished by a fine of not less than $100 nor more than $2,000, and by imprisonment for not less than thirty days nor more than six months. "(b) PURCHASING FROM IMPORTER OR OWNER OF IMPORTED OLEOMARGARINE WHO HAS NOT PAID SPECIAL TAX.-Every person who knowingly purchases or receives for sale any oleomargarine from any importer or owner of imported oleomargarine who has not paid the special tax required under section 2306 shall be liable for each offense to a penalty of $100. "(c) EMPTY PACKAGES. "(1) FAILURE TO DESTROY STAMPS.-Any person who willfully neglects or refuses to destroy utterly the stamps on any empty package which contained |