January 2, 1873
By the end of the 19th century the Dutch were receiving annually 200,000 barrels of American oil, while the domestic manufacture of oleomargarine, in spite of taxation restrictions, was furnishing annual consumption for 50,000 barrels.
The Rise of the American Cottonseed Oil Industry
The oleomargarine industry rose slightly earlier than the compound lard business, though furnishing less demand than the latter for cottonseed oil. Originating in France just before the Franco-Prussian War, it reached the status of patents and plants in the United States by 1873. The manufacture developed fairly rapidly in this country, with cottonseed oil becoming an important ingredient of the product, though not used in the first manufacture in France. When the dairy interests, not content with their state legislation, were securing the congressional legislation of 1886 to tax and regulate oleomargarine, they met opposition from the Cottonseed Crushers’ Association of the South, and one Southern congressman declared that the dairymen’s proposal would reduce the price of cottonseed from 20 cents a bushel to 10. American cottonseed oil, however, was also finding its way into the foreign manufacture of oleomargarine. Holland, for the making of butter substitutes, was soon taking about one-third of the best grades of cottonseed oil exported from the United States. By the end of the century the Dutch were receiving annually 200,000 barrels of American oil, while the domestic manufacture of oleomargarine, in spite of taxation restrictions, was furnishing annual consumption for 50,000 barrels.