the controverted questions of law and fact, and that the respective rights of the United States and the Northern Pacific Railroad Co. and/or its successor, the Northern Pacific Railway Co., be fully and finally established. We are presenting with this report a bill under which it is contemplated that proper proceedings shall be instituted by the Attorney General of the United States to procure a final and complete determination of the respective rights of the United States and the Northern Pacific Railway Co. to the end that the grants shall be finally adjusted and the interests of the United States and the grantee shall be fully protected. We are convinced that such legislation is necessary to protect the interests of the United States and to determine the issues involved. The provisions of the bill may be summarized, in general, as follows: By the first section all lands, surveyed or unsurveyed, within the indemnity limits of the grants and within the exterior boundaries of national forest and other Government reservations are removed from the operation of the land grants and retained by the United States as part of the reservations within which they are situate, relieved and freed from all claims, if any exist, which the Northern Pacific Railroad Co. or its successor, the Northern Pacific Railway Co., may have to acquire them as indemnity selections or otherwise, and provision is made that the railroad company or its successor shall be entitled to be compensated to the extent and in the amounts, if any, the courts hold compensation is due. By section 2, all unsatisfied indemnity selection rights, if any exist, claimed by the company, or its successor, together with all claims to additional lands by virtue of the grants are declared forfeited. (The committee having considered all the facts and circumstances believes that this limited forfeiture is justified.) Section 3 retains for the United States the right to enact additional legislation on the subject. Section 4 provides that the act shall not be construed as affecting the present title of the company or its successors in the right of way, acquired under the grants, or lands actually used in good faith by the Northern Pacific Railway Co. in the operation of its road, such as lands used for depots, station buildings, workshops, machine shops, switches, sidetracks, and water stations. Section 5 directs the Attorney General to institute proceedings to accomplish the objects mentioned therein and in the act in its entirety. Section 6 requires that an accounting be had and authorizes the rendering of such judgments and decrees as law and equity may require. Section 7 relates to the fixing of jurisdiction and to matters of procedure. Section 8 makes it the duty of the Attorney General to report to Congress any final determinations rendered in the proceedings and requires the Attorney General, the Secretary of the Interior, and the Secretary of Agriculture to submit to Congress such recommendations for the enactment of legislation, if any, as they deem desirable in the interests of the United States in connection with the execution of said judgments and decrees, or otherwise. By section 9 the Secretary of the Interior is directed to withhold his approval of the adjustment of the grants and related acts, and to withhold the issuance of further patents or muniments of title under the grants, and under acts supplemental thereto until the proceedings contemplated by this act have been finally determined, provided that the act shall not prevent the adjudication of any claims arising under the public land laws where the claimants are not seeking title thereto under the grants to the Northern Pacific Railroad Co. or its successor, or under any acts in modification thereof or supplemental thereto. Your committee, in making the foregoing summary of the purposes of the various sections of the bill, does not intend that the summary shall be taken as limiting or restricting their meaning as more fully set out and reflected in the bill itself. Your committee reported to the Seventieth Congress, second session, a similar bill which on February 21, 1929, was submitted to the Senate by Mr. Kendrick and to the House by Mr. Colton. The remarks of Mr. Colton made in the House in connection with the bill on March 2, 1929, which appear in the Congressional Record of March 12 (pp. 5294-5298), and March 15, 1929 (pp. 5431-5433), are, by reference, hereby incorporated in and made a part of this report. The committee unanimously recommends that the bill be passed. Respectfully submitted. DON B. COLTON, Chairman. JOHN B. KENDRICK. HENRY F. ASHURST. 罐 WM. J. DRIVER. O AMENDMENT TO THE OLEOMARGARINE ACT MAY 1, 1929.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. HAUGEN, from the Committee on Agriculture, submitted the following REPORT [To accompany H. R. 6] The Committee on Agriculture, to whom was referred the bill (H. R. 6) to amend the definition of oleomargarine contained in the act entitled "An act defining butter, also imposing a tax upon and regulating the manufacture, sale, importation, and exportation of oleomargarine," approved August 2, 1886, as amended, having considered the same, report thereon with a recommendation that it do pass. The bill reported herewith is as follows: [H. R. 6. Seventy-first Congress, first session] A BILL To amend the definition of oleomargarine contained in the act entitled "An act defining butter, also imposing a tax upon and regulating the manufacture, sale, importation, and exportation of oleomargarine," approved August 2, 1886, as amended Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2 of the act entitled "An act defining butter, also imposing a tax upon and regulating the manufacture, sale, importation, and exportation of oleomargarine," approved August 2, 1886, as amended, is amended to read as follows: "SEC. 2. That for the purposes of this act certain manufactured substances, certain extracts, and certain mixtures and compounds, including such mixtures and compounds with butter, shall be known and designated as 'oleomargarine', namely: All substances heretofore known as oleomargarine, oleo, oleomargarine oil, butterine, lardine, suine, and neutral; all mixtures and compounds of oleomargarine, oleo, oleomargarine oil, butterine, lardine, suine, and neutral; all lard extracts and tallow extracts; and all mixtures and compounds of tallow, beef fat, suet, lard, lard oil, fish oil or fish fat, vegetable oil, annatto, and other coloring matter, intestinal fat, and offal fat;-if (1) made in imitation or semblance of butter, or (2) calculated or intended to be sold as butter or for butter, or (3) churned, emulsified, or mixed in cream, milk, water, or other liquid, and containing moisture in excess of 1 per centum or common salt. This section shall not apply to puff-pastry shortening not churned or emulsified in milk or cream, and having a melting point of one hundred and eighteen degrees Fahrenheit or more, nor to any of the following containing condiments and spices: salad dressings, mayonnaise dressings, or mayonnaise products." HR-71-2-VOL 1—3 CHANGES WHICH ARE PROFOSED This bill repeats and reenacts into law section 2 of the act approved August 2, 1886, as amended, which act defines butter and oleomargarine, and provides for taxation of adulterated butter and oleomargarine and the conditions under which these products may be made and sold, with a number of changes for the purpose of making this statute fit conditions in the butter and oleomargarine industry brought about by the discovery of new processes and materials, and by changes in methods of manufacturing. Briefly stated the changes which are provided for are as follows: In the enumeration of the materials whose admixture constitutes one of the factors which identifies the fat compound as oleomargarine there has been added the terms "Fish oil or fish fat". Chemical processes have been perfected by which these fats and oils have been clarified and made edible, so they can be used to make a substitute for butter. In line 18 of the printed bill a comma has been added between the term "vegetable oil" and the word "annotto". This is to correct a situation which arose because in the engrossed copy of the act of 1886, as amended, this comma was omitted. The context as well as the facts at that time and now clearly indicate that the comma is connoted at this place, and it appeared in the informal copies of the original act as it was considered by the committee and on the floor at that time. That is, vegetable oil is one substance, and annotto is another and entirely different one, whose use is for the purpose of coloring anything with which it is mixed to a yellow color like the natural color of butter. The words "when so made" appear in the original act as amended before the word "calculated", line 13, page 2, and are omitted in this amendment. In view of the purpose of this present amendment these words are redundant. For enumeration purposes and to clarify the meaning of the language the numerals in parenthesis, "(1)" in line 12, "(2)" in line 13, and "(3)" in line 14 have been inserted. The principal change is the addition of the language that is used after the word "butter," in line 14, as follows: or (3) churned, emulsified, or mixed in cream, milk, water, or other liquid, and containing moisture in excess of 1 per centum or common salt. This section shall not apply to puff-pastry shortening not churned or emulsified in milk or cream, and having a melting point of one hundred and eighteen degrees Fahrenheit or more, nor to any of the following containing condiments and spices: Salad dressings, mayonnaise dressings, or mayonnaise products." THE PURPOSE OF THIS AMENDMENT The purposes of the minor changes have been stated as they were eneumerated. The purpose of the principal change is to add a new class of fat compounds to the definition of oleomargarine and bring it within the provisions of the oleomargarine law. This is a class of products which have been masquerading on the markets of the country for three or four years under the name of "colored cooking compounds" but which have been just as clearly made to imitate and to be sold for and in the place of butter as if they were falsely and fraudulently labeled "butter" on all four sides of the cartons in which they have been packed and sold. These compounds are made of coconut oil and peanut oil. The manufacturers and their attorneys appeared in force before the Committee on Agriculture and testified to their manufacture and the millions of pounds which have been sold. These fats were mixed together, churned in plain water, or perhaps in water with a few drops of a synthetic butter flavor which might make the mixture smell and taste in some respects like butter. Then they were salted just like butter, and colored with annatto or some other yellow coloring matter just like June butter, and then they were wrapped up in parchment just like butter is wrapped up in pound or in four quarter-pound pieces to the package, and placed on the market. The Bureau of Internal Revenue attempted to secure action on these products under the law of 1886 as amended, to enforce its provisions for manufacturer's tax, and wholesale and retail license and inspection of sales for the purpose of assuring the public that this flagrant imitation of butter was not being sold as or for butter, but these efforts have been defeated by court actions. Up to the time. these products were first made about four years ago oleomargarine was always made by emulsifying the fats in milk or cream, and these new compounds were mixed up in plain water. Therefore it was claimed they were not oleomargarine. The Internal Revenue Bureau was unable to control the situation and the business grew very rapidly. These facts and the conditions in the trade were fully presented to the Committee on Agriculture, and this proposed amendment to the oleomargarine act received careful study. The parties affected, the representatives of the makers of the "cooking fats," of oleomargarine, and of butter, appeared and gave testimony. Representatives of the Bureau of Internal Revenue testified that while they believed these compounds were in fact oleomargarine, under the existing law, they found themselves unable to take effective action because of litigation which had been begun and restraining orders which had been secured in various courts. Representatives of the oleomargarine industry testified and produced sworn affidavits and copies of newspaper and other advertising showing that these "cooking compounds" were being advertised, offered for sale, and sold as oleomargarine. Representatives of the butter industry testified that the products complained of, called "cooking fats," were being sold when butter was asked for and that the product was so closely in imitation of butter that some of their own experts found it difficult to distinguish between butter and the imitations as to color, saltiness, texture, ability to spread on bread, and in general appearance of both the fat product itself and the way it is wrapped, packaged, and offered for sale. They testified that oleomargarine is sold only in properly licensed and inspected establishments, under the law, so fraudulent sales and substitution of oleomargarine for butter were difficult and dangerous, but that these "cooking compounds" are sold indiscriminately by peddlers, unlicensed dealers, without license or chance of inspection or control. Representatives of the oleomargarine industry testified further that they were all able to engage in the manufacture of the new products |