Operation Oleo

Like an army awaiting H-hour, 150 huge trailer trucks lined up on the New Jersey side of the Hudson River one night last week. At midnight the trucks thundered into Manhattan by bridge and tunnel, fanned out over Long Island and northern suburbs. It was the first time in 70 years that yellow margarine could be legally sold in New York State, the nation's biggest market. By noon, a total of 400 trucks, some of them blaring banners labeled "Operation Oleo," had stocked almost every food store in the state.

As grocers' margarine sales shot up to twice and three times their normal level, the big margarine-makers helped them along by pricing the yellow margarine at less than white (i.e., at about 29-c- a lb.), and throwing in other come-ons that brought actual prices to as little as 15-c- to 20-c- a lb. Butter, as if thumbing its nose, went up in price (to 81-c- a lb.).

The New York invasion was margarine's biggest victory since 1950, when Congress repealed its 10-c--per-lb. discriminatory tax on yellow margarine. Since then, margarine-makers and embattled housewives, who saw no reason why they should have to spend 15 minutes kneading the coloring into a pound of margarine, have persuaded the legislatures of 41 states to legalize sales of yellow margarine.*

The rush at the stores last week made margarine-makers confident that U.S. consumption will grow faster than ever. Since 1935, butter consumption has fallen from 17.1 Ibs. per person to 9.7 last year, while margarine consumption has climbed from 2.4 Ibs. per person to 6.6 Ibs., and is increasing this year at the rate of 25%.

*Remaining holdouts: Iowa, Minnesota, Montana, South Dakota, Vermont, Washington and Wisconsin.

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