great deal more both of margarine and of butter if we made it possible for those people to get both margarine and butter.

I speak not so much now of the conditions existing today in wartime, but rather as a peace program.

We are supplying to the American public, including margarine and butter, about half the potential possible use of a table spread.

I believe our total consumption of both butter and margarine during the last number of years has been about 19 to 20 pounds per capita. Butter now, of course, on account of the war, has been reduced to around 13 pounds, and again on account of the war and the shortage of butter, the consumption of margarine has been increased to about 4 pounds, and if we could increase the consumption of both these products from the amount normally used, 5 or 10 pounds each, it would do the consumers and our business, and particularly the producers of these farm products, much greater benefit than is possible by the friction and conflicts that we have among ourselves.

Suppose that we attempted to increase the consumption of butter, let us say, from 17 to 18 pounds, where it normally is to 25 or 30 pounds. That could be done. It can be done if we will tell the American consumer about the fine qualities of butter, because butter is a good product and, of course, we must make butter the best it is possible to make. Then, after the war is over, I am sure that there is going to be a tremendous surplus of domestic fats and oils. The tremer dous increase in the production of vegetable oils during the past few years, particularly with reference to soybean oil, is going to create a domestic supply in America that we in America must prepare to consume. If we can do that, if we can now plan for it, we will have helped the farmer and we will have helped in the unemployment of many people who are going to be unemployed on account of the discontinuance of activities of many war industries.

Gentlemen, I would like to discuss just for a moment the margarine development in the margarine industry. Margarine was first manufactured early in 1870. You recall that Napoleon awarded a prize for a fat that could be used to supply civilians and the army on account of the shortage of butter and other fats. It was started in America in 1874.

There was no control at that time on any types of food products. There was a lot of fraud and deception, not just in margarine, but in every conceivable kind of food as there were no controls. We did not have the pure-food laws in those days, and as a result there was some deception.

The first laws, American laws, which were passed, were the Federal laws which were passed in 1886 regulating and restricting in certain ways the sale of and the manufacture of margarine. There followed many State laws in the various States, various States having their own laws; some copied from the Federal laws and some of their own origin.

Since that time there has been a very few years that there has not been some effort either in the States or in the Federal Congress to change, or restrict the sale and the manufacture of margarine.

Now, what is margarine? Margarine is a wholesome table spread manufactured from vegetable oils, animal fats, or a combination of both, incorporated with milk and skimmed milk or other products.

Now, if margarine is not a wholesome product, it should not be allowed to be sold under any condition. If it is a wholesome product there should be a free and unrestricted sale of it as a wholesome product of our American farms.

I would like to make this general comparison between margarine and butter. Butter contains in excess of 80 percent fat-butterfat. Margarine contains in excess, slightly in excess of 80 percent fat. It may be vegetable oils, animal fats, or other fats.

Each contains between 15 and 16 percent moisture. Each hasunless the unsalted butter-between 212 and 312 percent salt.

Each has slightly in excess of 1 percent of milk sold-not fat. That is the serum solids. The caloric value of each is about thirty-two, between thirty-two and thirty-three hundred.

The color of butter is naturally a rich yellow in the spring or at times when the cows are fed on green grass or when the food is green, and at other times it is the practice of most butter manufacturers to add color to their products.

Margarine is necessarily white, unless color has been added, because the Federal regulations make it necessary for us to use oil that has been bleached or oil without color, in order to manufacture margarine.

The vitamin content of the two products-the vitamin content as explained by Dr. Carlson on butter varies with the feed. In the spring and summer it is much higher than in the winter. I am not an authority on this; do not profess to be. It is my understanding that in the wintertime the vitamin content in butter probably drops down to 3,000 or 4,000 and yet in the spring and summer or when we have green grass it may be 15,000 or more.

The vitamin content of margarine, whenever it is fortified-and I might say that practically all, possibly 98 or 99 percent of the margarine manufacturers in America today, fortify margarine with vitamin A and it is fortified and marked on the label 9,000 units; no less than 9,000 units, U. S. P. units. That does not mean that the margarine has been fortified with 9,000 units, because most manufacturers use from 10,000 to 11,000 units of vitamin A, so as to protect the margarine from deterioration or lowering of the vitamin content on account of deterioration.

The digestibility of the two products is practically the same. The two fats are both, the vegetable fats and the butter fat, are both about equally digestible.

The margarine has an artificial flavoring added sometimes. However, it is not always necessary to add artificial flavoring, because margarine, like butter, gets its flavor from the skimmed milk-the serum solids, not fat, that have been added, the lactic acids and flavoring that has been developed in the serum solids in the margarine and in the` butter.

Briefly, the great difference between margarine and butter is in the fats used in the two different products.

I believe you had yesterday a summary of the ingredients used in margarine for the years 1935 to 1942. You will note that during those years, the year 1942, last shown on that sheet, there was a total animal fat content of 11 percent; cottonseed oil content was 48 percent; and soybean oil content was 38.5 percent; but, gentlemen, I am pleased to bring something further, a little bit later report to your attention on the content of margarine for the second quarter of 1943, the second

3 months; the second 3-month period 1943; and I am pleased to say that and to show this, because it shows that margarine is no longer a sectional product. It has been too long considered as a friction because of the friction between the North and South and one group of States as against another; but margarine is no longer manufactured from products that are produced primarily in any one section.

For this period-and this report is a Department of Commerce report for immedite release, dated September 25, 1943. It shows that oleomargarine used 40 percent cottonseed oil during that period and slightly in excess of 50 percent soybean oil during that period; and you gentleman from the States-Midwestern States-in which you produce soybean oil, realize that soybeans, like the grass that you feed the cows, or any other product, is after all simply a farm product. The fat that we get from the cow is, after all, nothing but a farm product; a product of the soil. So are the soybean and the vegetable oils that we manufacture margarine from.

The further thing that I would like to point out is that there is not any conflict, active conflict; there is no reason for conflict, between a dairy farmer, a dairy producer, and the margarine people, because. margarine itself is a product of the dairy.

Mr. COOLEY. What dairy product is used in the manufacture of margarine?

Mr. HOPKINS. Skimed milk is used in the manufacture of all margarine. It is from the skimmed milk that it gets its flavor.

Now, gentlemen, I have heard for several days-we have had testimony, and quite a bit of discussion about the color; why use color in margarine, and the question, Why do margarine manufacturers want to use color in margarine?

We use it for one purpose and that is to please the housewife. The housewife is our customer. We add color to margarine to make it appetizing; to please the housewife.

Now, it is true that you add color to butter. It is necessary to add color to butter if you are going to give it its original color in the wintertime.

We also manufacture cheese in our plant. We manufacture cheese all over the West and in other sections, and they add color to cheese. They do not add color to cheese simply to make it taste better, but they add color because it makes it more appetizing and makes it more attractive. We add color to candy. You know the stick candy you used to get and I used to get as kids had the little color rings in it. We add color to make it attractive and appetizing and appealing to the consumer.

We add color to gelatin and we add color to ice cream. We add color to pastries and we even add color to oranges. The color you see on an orange is added.

I would like to make this very definite and emphatic statement: The color is not added to margarine to make it look like butter. The color is added to margarine to make it appeal to the housewife. The housewife is our customer and we add color to make the product appealing to the housewife.

If you will think for a moment how a little white pat of margarine would appeal to your appetite-I believe Dr. Carlson emphasized that as a comparison with the same product colored in a rich golden color.

Now, it is true that we ourselves and the margarine industry, manufacture a great deal of margarine for the United States Government for lend-lease and they require that we color that margarine. Now, if it were not desirable for it to be colored it would not be done, but it is colored, because the consumers to whom it is shipped want their margarine colored, and there is no reason why the low-income group of American consumers should be deprived of an appetizing, appealing, table spread simply because we want to keep from adding color to a product.

Now, I would like to say this, that margarine can be made and color can be added into the product at the factory; color can be added to the margarine at the factory at no extra cost to the consumer. In addition to that, it will eliminate a lot of toil and labor and nuisance on the part of the housewife. It also will save, conservatively, about 22 percent of the fat that is actually wasted in the mixing of coloring in the home and that 212 percent represents in the aggregate about 10,000,000 pounds of the product, and in times like this there is no time to waste that quantity of fat.

Further, the addition of coloring in the home can be made much less sanitary than it is possible in a plant, manufacturing plant, margarine manufacturing plant. For that reason it will be more desirable, more sanitary, to add color at the plant.

Now, again, margarine is flavored, artificially flavored, sometimes, and the lactic acids development in the milk in the margarine, the skim milk in the margarine, is developed to a very desirable flavor, not to be like butter, but again to please the American housewife.

The American housewife has developed a habit for a taste in a table. spread, and it is the desire and it is the purpose of all manufacturers to give the housewife the thing that she wants. It is not done to imitate butter. It is done because it pleases the housewife. It is done to make the product more pleasing to her taste.

And it is hard to understand why the American people, of the lowincome group, or otherwise, should be deprived of the desirable flavor in a cheaper table spread, because it may conflict with the interests of some other group.

Margarine should be sold as margarine and on its own merit and, gentlemen, it has plenty of merit, and it can be sold on its own merits, could be, if it were not for the numerous restrictions that we have in the Federal laws against it.

Now, I would like for you to think about the matter of unfairness in connection with margarine; unfairness in and against the product. Americans may disagree and vitally disagree, but this is fundamental, I think; we are all fair. We might fight amongst ourselves, but we do want to be fair.

I think if the American people knew, really knew, the story of margarine, the true story, there would not be any restrictions against its sale, but unfortunately they do not know.

Now, to begin with, one, the unfairness to margarine-margarine can be made yellow. Will you get this, please? Margarine can be made yellow, without the addition of any artificial color; but the Federal regulations do not permit us to do that, because the Federal regulations say that we must not use oil that has a higher than a certain color. If you care to, I will read from page 4, at the top of page 4,

article 11, regulation No. 9, United States Treasury Department, covering the taxes on oleomargarine and butter.

Section 8 (b), act of August 2, 1886, as amended by section 8, act of May 9, 1902 (32 Stat. 194), and section 2, act of March 4, 1931 (46 Stat. 1549). [Reading:]

For the purposes of subsection (a) and of section 3, oleomargarine shall be held to be yellow in color when it has a tint or shade containing more than one and six-tenths degrees of yellow, or of yellow and red collectively, but with an excess of yellow over red, measured in the term of Lovibond tintometer scale or its equivalent.

Gentlemen, you first say that you must take the color out, the natural color, out of the oil, the vegetable fats, or the other particles that you use for manufacturing margarine and then you must take that oil and make it into an insipid product that will be white, so that it will have no appeal to the housewife, and if you do add color, you have got to pay 10 cents a pound for the addition of artificial color.

Now, I think that most people would realize that it would be a terrible thing to say to the butter manufacturers that we are going to do the same thing to you: "You cannot use butter unless the fat has been bleached to a certain color and that color must, when finished, have a rather insipid appearance and not be appetizing to the public."

I do not believe that the margarine people would object to that restriction if it were applied on butter as it is on margarine.

I might say there, too, that if that were permitted, we can make margarine yellow the year round without the addition of any artificial coloring and we can make it a good rich color, and I do not believe that can be said of butter.

Gentlemen, in addition to the numerous State laws on margarine, note how far and unreasonable our Federal laws on this product are as against most any other thing. There are no other foods that are comparable with it. But compare the tax that we have on margarine with some other Federal taxes.

I am reading from a paper that is marked for release Monday morning newspapers, Thursday, August 26. 1943, Treasury Department, Bureau of Internal Revenue. This is 1943.

There is a tax on rectifiers of distilled spirits. The rectifiers of distilled spirits of 200 barrels or more yearly must pay a tax of $200. Now, if those people were making margarine they would have to pav a manufacturers' tax of $600.

The wholesale dealers in liquors have to pay a wholesale dealer's license of $110. but if you were wholesaling margarine you would have to pay $200.

If he is a manufacturer of narcotics, he must pay a tax of $24 a year, while the manufacturer of oleomargarine pays $600.

And the retail dealer in narcotics pays $3 a year, and the retail dealer in margarine pays $6 a year.

The manufacturer of marijuana pays $12 a year and the manufacturer of margarine, oleomargarine, pays $600 a year.

The dealer in marijuana pays $3 and the dealer in uncolored margarine pays $6.

Yet if that margarine is colored the dealer pays $48; the retailer pays $48.