On August 2, 1886, Congress passed the Oleomargarine Act, imposing a tax on the production and sale of oleomargarine, and implementing strict licensing fees for manufacturers and retailers. Oleomargarine, later called simply margarine, was initially viewed with suspicion for its effect on dairy sales. Because the dairy industry was an important part of the North Dakota economy, and the U.S. market in general, there was strong concern that cheap margarine would reduce or even replace butter sales.
Some states passed “pink laws,” requiring margarine to be colored pink, with the idea that people would be less willing to spread anything pink on their toast, and would instead buy the more expensive, real butter. North Dakota chose not to enact any pink laws, and instead required that “yellow” margarine be sold at a higher price because it looked more like real butter, but the controversy continued for decades. Some people tried to pass off yellow margarine as butter, so much so that in 1911, North Dakota banned the sale of margarine made to look like real butter, regardless of what the label said. Uncolored oleo could be sold only “when the customer has full knowledge of what he is getting.”
On this date in 1887, the Griggs Courier reported that there were 37 factories in the U.S. engaged in the production of oleomargarine, most of them clustered around Wisconsin and Illinois, with more than 5,500 retailers nationwide. Margarine accounted for over 150,000 pounds of U.S. exports, a number that would only grow in the years that followed.
Despite the contributions oleomargarine made to the U.S. economy, controversy raged over whether it was safe for consumption, and whether the damage to the dairy industry made its production worthwhile. One man went so far as to say that “the liquor that runs through oleomargarine butter will eat through a pair of cowhide boots.” In 1900, the Bowbells Tribune even asked whether some of the largest manufacturers were using paraffin wax in their margarine.
However, concerns about quality were not enough to sway interest away from the cheaper price. The production and sale of artificial butter would remain a steady part of the North Dakota and greater U.S. economy for years to come.
Dakota Datebook written by Leonidas Miller