anaheim-gazette 1949-03-31

Repeal of Oleo Coloring Restrictions By Legislature Appears "Unlikely" By EARL G. WATERS Western News Service SACRAMENTO (WNS)—Although several measures have been introduced in the state assembly to repeal prohibitions against colored oleomargarine, it is unlikely this legislature will approve. In the first place the Assembly Livestock and Dairy committee to which the proposals have been referred for hearing, is dominated by members representing districts having substantial dairy interests. Secondly, the history of oleo legislation shows that most states adopted restrictive legislation against the product after the federal government had taken such action. Congress Falls to Act At the beginning of the year consumer groups had hoped congress would remove the tax on colored oleo but this now seems improbable. Most state legislators see no reason to repeal California laws affecting oleo until congress sees fit to remove the tax. They point out that if the state did remove the restriction against colored oleo while the federal tax remains it would reflect against the consumer inasmuch as the Federal Oleo tax of ten cents per pound applies only to colored margarine. Inasmuch as California law prohibits the sale of colored margarine consumers in this state do not pay the tax. Dairy Interests Hold Fast The dairy interests continue to hold fast in their stand against the sale of the colored butter substitute. They refute contentions that the law is discriminatory by declaring they have never opposed it, results in undermining of a basic industry. Others feel that the cotton industry in California has become almost as important as the dairy industry and that removal of the oleo restrictions would aid the cotton growers without damaging the dairy industry. Actually, the dairy industry now uses more cottonseed than does the oleo industry. According to figures advanced by the dairy industry cottonseed purchases as feed for dairy cows amounted to $771,000 in 1945 while oleo manufacturers paid cotton growers $729,000 for the same period. Consumer Grudge Consumers who were forced to resort to oleo purchases during the era of price controls still are nursing grudges against the dairy industry for their attitude in diverting butterfat to more lucrative products such as ice cream while the public was forced to do without butter. This peeve against the dairymen may be the deciding factor in the final outcome of the battle. Meanwhile, housewives who want to serve oleo will continue to buy the white margarine and perform the tedious chore of mixing the coloring at home. the consumer inasmuch as the Federal Oleo tax of ten cents per pound applies only to colored margarine. Inasmuch as California law prohibits the sale of colored margarine consumers in this state do not pay the tax. Dairy Interests Hold Fast The dairy interests continue to hold fast in their stand against the sale of the colored butter substitute. They refute contentions that the law is discriminatory by declaring they have never opposed the sale of the product in its natural form, meaning the sale of white margarine. The Retail Grocers association maintains that the law holds down the sale of oleo because of the public's preference for a yellow table spread. The proponents of repeal measures are embarked on a campaign to prove that oleo is as wholesome and nourishing as butter, a matter which is disputed by the dairy people. Reasons for the continued dairy opposition rest mainly on two factors. One is that milk or butter fat is considered to be the foundation of the dairy industry. Basic Industry Because it is the basis of the industry the dairy people contend that it must be protected in order to assure the public sufficient supplies of fluid milk. They feel that anything which would undermine the butter market would reflect in reductions of dairy herds and shortages of milk. At present milk surpluses are diverted into butter. If butter sales were reduced, they state, farmers would find themselves with surpluses of milk for which there would be no market and would be forced to cut their dairy herds. The other factor is that dairy farming is the leading agricultural industry of the state. There are more than 25,000 farm families in the state engaged in dairy production. Another 20,000 persons are engaged in the dairy plant operations. Oleo Industry Small By comparison the oleo industry is small. There are only six manufacturers of the product in the state. Oleo is made principally from cottonseed oil with soybean, peanut and other vegetable oils also being used. Skim milk is also used, the latter being the by-product of natural butter. Legislators confronted with the problem naturally must consider the effect removal of oleo restrictions might have on the public. Expect 'To Make Hay' in County With rainfall in most sections of the state near normal, and with plenty of water assured for irrigation needs this summer, California is expected to produce a bumper hay crop, one which will return farmers in Orange county having 23,000 acres planted to hay, approximately $1,449,000. The California crop and livestock reporting service said today it is estimated California farmers will plant 2,066,000 acres to all types of hay this year, as compared to 1,949,000 acres last year which yielded an average of 2.93 tons per acre and returned $122,-937,000. With conditions much more favorable now than last year, this acreage may increase with greater yields per acre, and with additional revenue to growers, the service said. Should less favorable conditions develop, the acreage might fall below the level estimated for the 1949 crop. Plantings of all hay are expected to increase six per cent, alfalfa hay seven per cent, and grain hay seven per cent, the service reported. JENNE HUMMEL APPLIES FOR CONTRACTORS LICENSE Application for a contractor's license in plastering was filed last week in Sacramento with the contractors state license board by Jenne Hummel, of 6801 Orange avenue, Anaheim. The board delays action ten days after which it issues the license provided no written protest has been received. Phone 4618 ERMISCH "MY CLEANER" 350 W. Center - Anaheim By comparison the oleo industry is small. There are only six manufacturers of the product in the state. Oleo is made principally from cottonseed oil with soybean, peanut and other vegetable oils also being used. Skim milk is also used, the latter being the by-product of natural butter. Legislators confronted with the problem naturally must consider the effect removal of oleo restrictions might have on the public. 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