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TREASURY DEPARTMENT 
 
 BUREAU OF INTERNAL REVENUE 
 
 INTERNAL REVENUE 
 LAWS 
 
 IN FORCE MAY 1, 1920 
 
 WITH AN APPENDIX 
 
 CONTAINING LAWS OF A GENERAL NATURE AND 
 
 MISCELLANEOUS PROVISIONS APPLICABLE 
 
 TO THE ADMINISTRATION OF THE 
 
 INTERNAL-REVENUE LAWS 
 
 COMPILED UNDER THE DIRECTION OF 
 
 COMMISSIONER OF INTERNAL REVENUE 
 
 COMPILATION OF 1920 
 
 WASHINGTON 
 
 GO\'ERNA1ENT PRLVTING OFFICE 
 
 1920 
 
 Digitized bi/^ Microsoft^ 
 
ir 
 
 A A-%^-]^si 
 
 Treasdry Department, 
 
 Document No. 2843, 
 
 Internal Ticvenv.e. 
 
 ADDITIONAL COPIES 
 
 OF Tins rUBLICATlON MAT BE PEOCTJHED FEOM 
 
 THE SUPEMNTENPENT OF DOCOMfNTS 
 
 GOVERNMENT PRINTING OFFICE 
 
 "WASHINGTON, D. C. 
 
 AT 
 
 S1..50 PER COPY (IN BUCKRAM) 
 
 Digitized by Microsoft® 
 
CONTENTS. 
 
 Page. 
 
 lutrodnction 5 
 
 Abbreviations 7 
 
 Table of sections 
 
 List of Commissioners of Internal Revenue (1862-1919) 15 
 
 Internal-revenue taxation 17 
 
 List of acts of Congress relating to internal revenue (1861-1919) 27 
 
 Internal-revenue collection districts 47 
 
 List of internal-revenue regulations 49 
 
 INTEKNAL EEVENUE LAWS. 
 
 Organization of Office of Internal Revenue 51 
 
 Ghapteb 1. Officers of internal revenue 09 
 
 2. Assessments and collections 103 
 
 3. Special taxes 153 
 
 4. Distilled spirits ^ 187 
 
 5. Fermented liquors 305 
 
 6. Wines and other beverages 325 
 
 7. National prohibition 345 
 
 8. Tobacco and snuff_ 371 
 
 9. Cigars, cigarettes, etc 395 
 
 10. Opium 413 
 
 11. Oleomargarine ; adulterated butter ; process or renovated 
 
 butter 429 
 
 12. Filled cheese 445 
 
 13. Mixed flour 451 
 
 14. White phosphorus matches 457 
 
 15. United States cotton futures act 463 
 
 16. Income taxes 473 
 
 17. War-profits and excess-profits taxes 513 
 
 18. Estate tax 525 
 
 19. Tax on transportation and otber facilities 533 
 
 20. Insurance 537 
 
 21. Admissions and dues 530 
 
 22. Excise taxes 543 
 
 23. Stamp taxes on specific objects 551 
 
 24. Tax on employment of child labor 565 
 
 25. Playing cards ^ 569 
 
 26. Banks and bankers 575 
 
 27. Exemption of Liberty and other bonds from taxation 581 
 
 28. Provisions common to several objects of taxation 587 
 
 APPENDIX. 
 
 (^Containing miscellaneous provisions and Unas of a general nature appli- 
 caMe to the administration of the internal-revenue laws.) 
 
 Chapter 1. Suits and prosecutions, jurisdiction, practice, evidence, liens, 
 limitations, compromises, remissions ; United States at- 
 torneys, duties as to prosecutions, reports ; clerks of 
 
 courts, reports of, etc 635 
 
 2. Duties of officers charged with receiving or disbursing pub- 
 lic moneys, penalties for embezzlement and official mis- 
 conduct, proceedings against delinquent officers, etc 661 
 
 3 
 
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4 CONTENTS. 
 
 Page. 
 Chapter 3. Penalties for perjury, obstructing process, resisting offi- 
 cers, rescuing prisoners or property, falsely assuming to 
 be an officer, bribery, conspiracy, destroying public rec- 
 ords, stealing public property, receiving stolen Government 
 property, counterfeiting, interstate shipments of liquors, 
 etc 673 
 
 4. Payment to persons in arrears, set-offs, credits, priority of 
 
 Government, appropriations, claims, attorneys before de- 
 partments, duplicate checks, penalty envelopes, telegrams, 
 etc , 682 
 
 5. Officers, clerks, and employees, extra services, holding two 
 
 offices, prohibition as to business, fees, pex'quisites, political 
 
 contributions, presents to superiors, etc 692 
 
 6. Legacies and distributive shares of personal property 704 
 
 7. Special excise tax on corporations 711 - 
 
 8. Income tax imposed by act of October 3, 1913 729^ 
 
 9. Act to increase the revenue, and for other purposes, approved 
 
 October 22, 1914 762 
 
 10. Act to increase the revenue, and for other purposes, approved 
 
 September 8, 1916 792 
 
 11. Act to provide increased revenue to defray expenses of in- 
 
 creased appropriations for the Army and Navy and the 
 extensions of fortifications, and for other purposes, ajD- 
 proved March 3, 1917 845 
 
 12. Act to provide revenue to defray war expenses, and for other 
 
 purposes, approved October 3, 1917 849 
 
 Index 903 
 
 Digitized by Microsoft® 
 
IN^TRODUCTIOK 
 
 This compilation contains the internal revenue laws in force 
 March 1, 1920. 
 
 The last compilation was published in 1911. Since that date many 
 changes have been made in the law and new legislation enacted, 
 rendering much of the matter contained in that compilation obsolete 
 and making a new compilation very desirable. 
 
 , The most important measures relating to internal revenue passed 
 since the last compilation was issued are as follows : 
 
 I. Act cf October 3, 1913 (38 Stat., 166), income tax. Superseded 
 by act of September 8, 1916 (39 Stat., 756). 
 
 II. Acts of January 17, 1914 (38 Stat., 277), and December 17, 
 1914 (38 Stat., 785), opium. 
 
 III. Act of October 22, 1914 (38 Stat., 745), emergency revenue 
 act. 
 
 IV. Act of August 11, 1916 (39 Stat., 476), cotton futures. 
 
 V. Act of September 8, 1916 (39 Stat., 756), entitled "An act to 
 increase the revenue, and for other purposes," effective September 9, 
 1916, ^yhich repealed the emergency revenue act of October 22, 1914, 
 and joint resolution of December 17, 1915, except sections three and 
 four (special taxes), which remained in force until January 1, 1917, 
 amended the income tax laAv by increasing the tax and modifying 
 some of the minor and administrative measures without disturbing 
 the fundamental features of the previous law. This act also imposed 
 an estate tax, a munition manufacturer's tax, and other taxes. 
 
 VI. Act of March 3, 1917 (39 Stat., 1000), entitled "An act to 
 provide increased revenue," etc., which imposed an excess profits tax 
 and an estate tax, and provided for a return of dividends. 
 
 VII. Act of August 10, 1917 (40 Stat., 276, 282), forbidding use 
 of foods, foodstuffs, etc., in production of distilled spirits for bever- 
 age purposes. 
 
 VIII. Act of October 3, 1917 (40 Stat., 300), war-revenue act. 
 This was an act to provide revenue to defray war expenses and for 
 other purposes, taking effect October 4, 1917, except as otherwise 
 provided, a2id increasing the income tax, tax on distilled spirits and 
 other articles, and imposing many new taxes. 
 
 IX. Act of November 21, 1918 (40 Stat., 1046), making sales of 
 distilled spirits for beverage purposes until end of war unlawful. 
 
 X. Act of February 24, 1919 (40 Stat., 1057), entitled "An act 
 to provide revenue, and for other purposes," which imposed an in- 
 come tax, war-profits and excess-profits tax, estate tax, tax on trans- 
 portation and other facilities, on insurance, on beverages, on cigars, 
 tobacco, and manufactures thereof, on admissions and dues, an excise 
 tax, special tax on occupations, stamp taxes, and a tax on employ- 
 ment of child labor. 
 
 XL Act of October 28, 1919, known as the " National Prohibition 
 Act." which prohibits intoxicating beverages, regulates the manufac- 
 
 5 
 Digitized by Microsoft® 
 
b INTRODUCTION. 
 
 ture, eix., of high-proof spirits for other than beverage purposes., 
 and insures an ample supply of alcohol and promotes its use for 
 certain purposes. 
 
 The body of this work consists of Title XXXV of the Revised 
 Statute's, with amendments, and subsequent acts incorporated in 
 their appropriate places, the obsolete and repealed sections being 
 omitted, except where the repealing acts provide that repealed sec- 
 tions shall remain in force for administrative purposes. 
 
 The references, in previous compilations, to decisions of the courts, 
 and the opinions of the Attorney General, and of this office, bearing 
 upon the construction of the sections which they follow, and ex- 
 planatoiy thereof, are retained where applicable, with additions, as 
 are also the references made in notes at the close of sections to other 
 sections of the law relating to the same matter or which modify 
 or affect the sections which they follow. 
 
 The plan adopted in previous compilations in the arrangement 
 of the appendix — viz, that of grouping the sections and acts relating 
 to the same subject, instead of preserving the sequence according to 
 the enumeration in the Revised Statutes — is followed in the present 
 compilation. 
 
 The publication of internal-revenue decisions and circulars com- 
 mencing January 1, 1898, have been published in Treasury Decisions 
 weekly by the Treasury Department (T. D. 18758). 
 
 Wm. M. Williams, 
 Cpmmdssioner of Internal Revenue. 
 
 Digitized by Microsoft® 
 
ORGANIZATION OF INTERNAL REVENUE BUREAU^ 
 
 .SECRETAKT OF THE TREASUBY. 
 
 David P. Houston. 
 
 ASSISTANT SECRETARY OF THE TREASURY. 
 JOUETT ShOUSE. 
 
 commissioner of internal, revenue. 
 William M. Williams. 
 
 assistant to the commissioner of internal revenue. 
 Paul JP. Myers. 
 
 solicitor of internal revenue. 
 Wayne Johnson. 
 
 COMMITTEE on APPEALS AND REVIEW. 
 
 P. S. Taleert, Chairman. 
 
 INCOME TAX UNIT. 
 
 GBOB.GB V. NbwtoNj Deputy Commissioner. 
 Franklin C. Parks, Assistant. 
 
 ESTATE, capital STOCK, AND CHILD LABOR TAX UNIT, 
 
 James IIagerman, Deputy Commissioner. 
 liiLLiAN S. EuDMCKj Assistant. 
 
 ACCOUNTS, SUPPLIES. STAMPS, AND PUBLICITY UNIT. 
 
 C. B. HuRREY, Deputy Commissioner. 
 
 SALES TAX, TOBACCO, AND MISCELLANEOUS UNIT. 
 
 James M. Baker, Deputy Commissioner. 
 A. C. HOLDEN, Assistant. 
 
 supervisor op collectors' offices. 
 Frank B. Frazibr. 
 
 special intelligence unit. 
 E. L. iREYj Chief. 
 
 PROHIBITION UNIT. 
 
 John F. Kramer, Coinmissioner. 
 H. M. Gatlord, Assistant ComTnissioner, 
 
 APPOINTMENT DIVISION. 
 
 G. S. Paull, Chief. 
 
 EDITOR AND COMPILER. 
 
 H. B. Skillman, Upeeial Attorney, Solicitor's Office. 
 
 Digitized by Microsoft® 
 
ABBREVIATIONS. 
 
 Abb. (U. S.) Abbott's United States Circuit and District Court Re- 
 ports. 
 
 Am. Eng. Bncy. La\v_-Anierlcan and English Encyclopedia of Law. 
 
 App. D. C Court of Appeals Reports, District of Columbia. 
 
 Ben Benedict's United States District Court Reports. 
 
 Biss. (U. S.) Bissell's United States Circuit and District Court Re- 
 ports. 
 
 Blatch. or Blatchf Blatchford's United States Circuit Court Reports. 
 
 Bond (U. S.) Bond's United States Circuit and District Court Re- 
 ports. 
 
 Cal California Reports. 
 
 C. C. A Circuit Court of Appeals. 
 
 Cliff. (U. S.) CliflCord's United States Circuit Court Reports. 
 
 Conn Connecticut Reports. 
 
 Comp. Dec Comptroller's Decisions. 
 
 Ct. CIS. or Ct. Clms— United States Court of Claims Reports. 
 
 Crancb (U. S.) Cranch's United States Supreme Court Reports. 
 
 Dall. (U. S.) Dallas' United States Reports. 
 
 Deady (U. S.) Deady's United States Circuit and District Court Re- 
 ports. 
 
 Dill. (U. S.) Dillon's United States Circuit Court Reports. 
 
 Fed The Federal Reporter. 
 
 Fed. Cas Federal Cases United States Circuit and District Courts. 
 
 Ga Georgia Reports. 
 
 Gray (Mass.) Gray's Massachusetts Reports. 
 
 Hughes (U. S.) Hughes' United States Circuit Court Reports. 
 
 Int. Rev. Rec Internal Revenue Record. 
 
 Lawrence Dec Decisions of AVilliam Lawrence, First Comptroller of 
 
 the Treasury. 
 
 Low Lowell's United States District Court Reports. 
 
 Mackey (D. C.) Mackey's District of Columbiu Reports. 
 
 Mass Massachusetts Reports. 
 
 N. C North Carolina Reports. 
 
 N. Y New York Reports. 
 
 Op. Atty. Gen United States Attorney General's Opinions. 
 
 Otto (U. S.) Otto's United States Supreme Court Reports. 
 
 Penn Pennsylvania Reports. 
 
 Pet. (U. S.) Peter's United States Supreme Court Reports. 
 
 Saw. or Sawy. (U. S.)-- Sawyer's United States Circuit and District Court 
 Reports. 
 
 Reg Internal Revenue Regulations. 
 
 R. S. - United States Revised Statutes. 
 
 Stat United States Statutes at Large. 
 
 T. D Treasury Decisions. 
 
 U. S United States Supreme Court Reports. 
 
 Wall. (U. S.) Wallace's United States Supreme Court Reports. 
 
 Wash. Law Rep Washington Law Reporter. 
 
 W. Va West Virginia Reports. 
 
 Wheat Wheaton's United States Supreme Court Reports. 
 
 Wood (U. S.) Wood's United States Circuit Court Reports. 
 
 Woolw. Woolworth's United States Circuit Court Reports. 
 
 8 
 
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TABLE OP SECTIONS. 
 
 In this table the numbers of sections of the Revised Statutes Included In this compila- 
 tion are arranged In numerical order for convenient reference to pages. 
 
 Following this are the numbers of sections of other acts, arranged In chronological 
 order, and the page for each section. 
 
 Sections. 
 
 1-5 - 
 
 12 
 
 13 
 
 173 
 
 174 
 
 184 
 
 189 
 
 190 
 
 196 
 
 236 
 
 239 
 
 244 
 
 251 
 
 261 
 
 319 
 
 320 
 
 321 
 
 322 
 
 323 
 
 349 ^ 
 
 364 
 
 [708] (see "The Judicial Code"). 
 
 Page. 
 
 70 
 
 46 
 
 46 
 
 56 
 
 56 
 
 684 
 
 657 
 
 703 
 
 67 
 
 682 
 
 66 
 
 702 
 
 66 
 
 66 
 
 51 
 
 56 
 
 nl 
 
 .->5 
 
 55 
 
 56 
 
 057 
 
 652 
 
 E711] (see"The Judicial Code")— - 037 
 
 721 646 
 
 [731] (see "The Judicial Code")— 638 
 
 [732] (see " The Judicial Code ")— - 638 
 
 1733] (see "The Judicial Code ") 638 
 
 771 658 
 
 774 659 
 
 797 (amended) 660 
 
 838 659 
 
 850 701 
 
 858 (amended) 643 
 
 882 644 
 
 886 671 
 
 887 672 
 
 914 647 
 
 916 647 
 
 919 638 
 
 934 6oG 
 
 051 -— 685 
 
 957 672 
 
 963 640 
 
 966 649 
 
 969 646 
 
 970 654 
 
 974 , 646 
 
 986 648 
 
 989 654 
 
 993 (District of Columbia) 699 
 
 1001 652 
 
 1008 6o2 
 
 1014 642 
 
 1024 642 
 
 1046 6o3 
 
 1047 653 
 
 1753 693 
 
 1754 693 
 
 1760 - 698 
 
 1 763 1 699 
 
 1 T64 700 
 
 1765 700 
 
 1766 684 
 
 [1780] § 101, Criminal Code 671 
 
 [17S2] § 113, Criminal Code 702 
 
 17S4_:__— J 703 
 
 [1788] § 103, Criminal Code 671 
 
 [1789] § 103, Criminal Code 671 
 
 1700 703 
 
 Sections. 
 
 2982 (amended) __ 
 
 3140 (amended) — 
 
 3141 
 
 3142 
 
 3143 (amended) — 
 
 3144 (amended) 
 
 3146 
 
 3147 
 
 [3148] (amended) 
 3149 (amended) __ 
 3150 
 
 3152 (amended) — 
 
 3153 (amended) __ 
 
 3154 
 
 315.5 
 
 3156 
 
 3157 
 
 3158 (amended) — 
 
 3161 
 
 3162 
 
 3163 (amended) — 
 
 3164 (amended) __ 
 
 3165 (amended) — 
 
 3166 
 
 3167 (amended) — 
 
 3168 
 
 3169 
 
 3170__- 
 
 3171 (amended)-. 
 
 3172 (amended) — 
 
 3173 (amended)-. 
 
 3174 
 
 3175 
 
 3176 (amended) -- 
 
 3177 
 
 .3179 
 
 3180 
 
 3181 
 
 3182 
 
 3183 (amended)-. 
 
 3184 
 
 3185 
 
 3186 (amended) — 
 
 3187 
 
 3188 
 
 3189 
 
 3190 
 
 3191 
 
 3192 
 
 3193 (amended) — 
 
 3194 ^^— 
 
 3195 
 
 3196 
 
 3197 (amended) — 
 3198 
 
 Page. 
 
 007 
 
 70 
 
 71 
 
 71 
 
 _-• 72 
 
 75 
 
 76 
 
 76 
 
 76 
 
 80 
 
 81 
 
 81 
 
 84 
 
 87 
 
 88 
 
 88 
 
 89 
 
 91 
 
 91 
 
 92 
 
 92 
 
 94 
 
 95 
 
 96 
 
 96 
 
 98 
 
 98 
 
 — _ 101 
 
 101 
 
 104 
 
 104 
 
 107 
 
 107 
 
 108 
 
 110 
 
 111 
 
 111 
 
 111 
 
 112 
 
 115 
 
 116 
 
 117 
 
 118 
 
 119 
 
 120 
 
 120 
 
 120 
 
 121 
 
 121 
 
 121 
 
 122 
 
 122 
 
 122 
 
 122 
 
 125 
 
 3199— 125 
 
 3200 125 
 
 3201 126 
 
 3202 126 
 
 3203 (amended) 126 
 
 3204 126 
 
 3205 127 
 
 3206 127 
 
 3207 127 
 
 3208 (amended) 128 
 
 3209 129 
 
 3210 129 
 
 3211 130 
 
 3212 : 132 
 
 Digitized by Microsoft® 
 
 9 
 
10 
 
 TABLE OF SEGTIOUS. 
 
 Sections. Page. 
 
 3213 132 
 
 3S14 11—- 134 
 
 3215 134 
 
 3216 — — 135 
 
 3217 135 
 
 3218 136 
 
 3219 137 
 
 3220 (amended) 137 
 
 3221 (amended) 142 
 
 3222 144 
 
 3223 (amended) I 144 
 
 3224 . 144 
 
 3225 (amended) I— I 146 
 
 3226 146 
 
 3227 147 
 
 3228 148 
 
 3229 149 
 
 3230 151 
 
 3231 151 
 
 3232 154 
 
 3233 154 
 
 3234 155 
 
 3235 155 
 
 3236 - 155 
 
 8237 (amended) 156 
 
 3238 156 
 
 3239 157 
 
 .S240 (amended! 157 
 
 3241 ^ 158 
 
 3242 (amended) 159 
 
 3243 161 
 
 3244 (amended) 162,375,388,395 
 
 3246 (amended) 176 
 
 3247 189 
 
 3248 190 
 
 3249 190 
 
 3250 192 
 
 3251 (amended) 192 
 
 3252 - 207 
 
 3253 207 
 
 3254 : 207 
 
 3255 (amended) 207 
 
 3256 208 
 
 3257 209 
 
 3258 209 
 
 3259 210 
 
 3260 (amended) 211 
 
 3261 215 
 
 3262 (amended) 215 
 
 3263 , 217 
 
 3264 (amended) 217 
 
 3265 219 
 
 3266 220 
 
 3267 220 
 
 3268 221 
 
 3269 221 
 
 3270 222 
 
 3271 222 
 
 3272 224 
 
 3273 224 
 
 3274-- 224 
 
 3275 224 
 
 3276 (amended) , 225 
 
 3277 : ' 226 
 
 3278 226 
 
 3279 226 
 
 3280 227 
 
 3281 227 
 
 3282 (~a"mTnded)--I— I 231 
 
 3283 233 
 
 3284 233 
 
 3285 (amended) 234 
 
 3286 (amended) 234 
 
 3287 (amended) 234 
 
 3288 237 
 
 3289 238 
 
 3290 239 
 
 3291 239 
 
 3292 239 
 
 3293 (amended) I_ZZ 239 
 
 3294 (amended) 243 
 
 3295 (amendtjd) 255 
 
 3296 256 
 
 3297 257 
 
 3298 — 258 
 
 3299 258 
 
 3300 259 
 
 Sections. Page. 
 
 3301 (amended) 259 
 
 3302 260 
 
 3303 260 
 
 3304 261 
 
 3305 261 
 
 3306 262 
 
 3307 262 
 
 3308 .--- 263 
 
 3309 (amended) 263 
 
 3310 (amended) 266 
 
 3311 267 
 
 3312 268 
 
 3313 26'8 
 
 3314 (amended) 260 
 
 3315 (amended) 270 
 
 3316 270 
 
 3317 (amended) 271 
 
 3318 (amended) 272 
 
 3319 274 
 
 3320 (amended) 275 
 
 3322 276 
 
 3323 (amended)-! 276 
 
 3324 277 
 
 3325 •- 278 
 
 3326 278 
 
 3327 279 
 
 3328 325 
 
 3320 (amended) 279 
 
 3330 (amended) 281 
 
 3331 286 
 
 3332 (amended) 287 
 
 3333 288 
 
 3334 (amended) 288 
 
 3335 305 
 
 3336 (amended) 306 
 
 3337 306 
 
 3338 307 
 
 3339 (amended) 308 
 
 3340 (amended) 310 
 
 3341 (amended) 310 
 
 3342 (amended) 311 
 
 3343 312 
 
 3344 312 
 
 3345 313 
 
 3346 (amended) 314 
 
 3347 314 
 
 3348 314 
 
 3349 315 
 
 3350 315 
 
 3351 315 
 
 3352 316 
 
 3353 316 
 
 3354 (amended) 316 
 
 3355 (amended) 372 
 
 3356 374 
 
 3357 (amended) 374 
 
 3358 374 
 
 3359 376 
 
 3360 (amended) 376 
 
 3362 (amended) 378 
 
 3363 (amended) 379 
 
 3364 (amended) 380 
 
 3366 380 
 
 3367 380 
 
 3368 (amended) 380 
 
 3369 383 
 
 3370 384 
 
 3371 (amended) 384 
 
 3372 385 
 
 .3373 3,85 
 
 3374 386 
 
 3375 386 
 
 3376 .386 
 
 3377 (amended) . ,'587 
 
 3381 (amended) 388 
 
 3382 389 
 
 3383 (amended) 389 
 
 3384 (amended) 389 
 
 3385 (amended) 390 
 
 3386 (amended) 393 
 
 3387 (amended) 396 
 
 3388 (amended) 397 
 
 3389 (amended) 397 
 
 3390 397 
 
 3391 398 
 
 3392 (amended) 399 
 
 3393 (amended) 400 
 
 Digitized by Microsoft® 
 
TABLE OF SECTIONS. 
 
 11 
 
 Sections. Page. 
 
 3394 (amended) 400 
 
 3396 406 
 
 3396 406 
 
 3397 (amended) 407 
 
 3398 408 
 
 3399 ■ 408 
 
 3400 408 
 
 3402 -•- 409 
 
 3403 410 
 
 3404 410 
 
 340r> 410 
 
 3406 411 
 
 .3407 575 
 
 3408 575 
 
 3409 576 
 
 3411 ' 57(1 
 
 3412 577 
 
 3413 577 
 
 3414 . 579 
 
 3415 579 
 
 3410 579 
 
 3417 580 
 
 3422 551 
 
 3426 552 
 
 3429 553 
 
 3433 (amended) 607 
 
 3437 553 
 
 3443 588 
 
 3444 588 
 
 3445 589 
 
 3446 (amended) 589 
 
 3447 590 
 
 3448 590 
 
 3449 591 
 
 3450 , 592 
 
 3451 594 
 
 3452 I 594 
 
 3453 594 
 
 3454 596 
 
 3455 596 
 
 3456 597 
 
 3457 597 
 
 3458 597 
 
 3459 598 
 
 3460 599 
 
 3461 601 
 
 3462 , 601 
 
 3463 604 
 
 3464 606 
 
 3465 612 
 
 3466 685 
 
 3467 686 
 
 3469 656 
 
 3477 689 
 
 Sections. Page. 
 
 3617 662 
 
 3620 (amended) 662 
 
 3621 (amended) 663 
 
 3622 (amended) 663 
 
 3623 666 
 
 3624 666 
 
 3625 (amended) 666 
 
 3633 (amended) 666 
 
 3638 — 667 
 
 3639 667 
 
 3643 667 
 
 3648 689 
 
 3671 , 53 
 
 3678 687 
 
 3679 (amended) 687 
 
 3689 686 
 
 3690 688 
 
 3732 688 
 
 5266 692 
 
 5292 054 
 
 5293 655 
 
 5295 _ 655 
 
 [5392]'section 125,~Crrmrnal Codill- 674 
 
 [5398] section 140, Criminal Code 674 
 
 [5401] section 143, Criminal Code 674 
 
 [5403] section 128, Criminal Code C78 
 
 [5408] section 129, Criminal Code— 678 
 
 [5413] section 147, Criminal Code 080 
 
 [5414] section 148, Criminal Code 680 
 
 [5418] section 28, Criminal Code 679 
 
 [5438] section 35, Criminal Code 680 
 
 [5440] section S7, Criminal Code 677 
 
 [5446, 5447] sections 65, 71, Criminal 
 
 Code 674, 675 
 
 [5448] 
 
 15451 
 
 1 5454- 
 
 [5456" 
 
 [5479 
 
 15483] 
 
 [5484- 
 
 15488 
 
 sections 32, 66, Criminal Code 
 
 section 39, Criminal Code 
 
 section 40, Criminal Code 
 
 section 46, Criminal Code 
 
 section 28, Criminal Code 
 
 section 86, Criminal Code 
 
 section 145, Criminal Code 
 
 section 87, Criminal Code 
 
 [5489] section 88, Criminal Code 
 
 675 
 675 
 678 
 679 
 679 
 667 
 677 
 668 
 668 
 668 
 669 
 669 
 
 [5490] section 89, Criminal Code 
 
 [5491] section 90, Criminal Code 
 
 [5492] section 91, Criminal Code 
 
 [5494-5497] sections 93-97, Criminal 
 
 Code 669, 670 
 
 [5498] section 109, Criminal Code— _ 702 
 [5501] section 117, Criminal Code— 676 
 
 [5502] section 117, Criminal Code 676 
 
 [5504] section 99, Criminal Code 671 
 
 [5505] section 100, Criminal Code 671 
 
 [5518] section 21, Criminal Code 677 
 
 OTHER ACTS. 
 
 Page. 
 
 .January 8, 1874 (18 Stat., 2) 223 
 
 January 29, 1874, section 1 (18 Stat., 
 
 0) 55 
 
 March 20, 1874, section 3 (18 Stat. 
 
 109) 700 
 
 Juno 9, 1874, sections 1 and 2 (IS 
 
 Stat, 64) 281,283 
 
 June 20, 1874 (18 Stat., 110) 689 
 
 June 22, 1874, section 5 (18 Stat., 
 
 187) 644 
 
 February S, 1875 (18 Stat., 309) 
 
 Section 12 76 
 
 Section 13 79 
 
 Section 16 160, 228 
 
 Section 17 270 
 
 Section 18 168, 170 
 
 Section 19 577 
 
 Section 20 577 
 
 Section 21 578 
 
 SecUon 23 101 
 
 Section 24 393 
 
 Section 25 391 
 
 March 3, 1875, section 1 (18 Stat., 
 
 ■ 339) 192 
 
 March 3, 1875, section 12 (18 Stat., 
 
 419) 263 
 
 March 3, 1875 (18 Stat., 470) 639 
 
 March 3, 1875, sections 1, 2 (18 
 
 Stat., 479) 679 
 
 Digitized by 
 
 Pag'e. 
 
 March 3, 1875 (18 Stat., 481) 684 
 
 March 3, 1875 (18 Stat., 484) 311 
 
 May 13, 1876 (19 Stat., 53) 307 
 
 August 15, 1876 (19 Stat., 143) 
 
 Section 1 84, 89, 93, 590 
 
 Section 3 693 
 
 Section 6 703 
 
 February 27, 1877 (19 Stat, 240) __ 70, 
 266, 272. 654, 655, 662 
 March 3, 1877, sections 5, 6 (19 Stat, 
 
 335) 691 
 
 March 3. 1877, sections 1-11 (19 
 
 Stat, 393) 251-254 
 
 May 3, 1878 (20 Stat, 48) 257 
 
 June 19, 1878, section 1 (20 Stat, 
 
 187) 89 
 
 March 1, 1879 (20 Stat, 327-341) 
 
 Section 1 - 100 
 
 Section 2. 72, 75, 76. 79-81, 92, 101, 660 
 Section 3_- 115, 118, 122, 126, 128, 144 
 
 Section 4 166, 170 
 
 Section 5 176, 
 
 208, 217, 225, 231, 234, 243, 
 259, 269-272, 287, 288, 314 
 
 Section 6 142, 265 
 
 Section 9 231 
 
 Section 10 164, 283, 310 
 
 Section 11 . 289 
 
 Section 12 , 290 
 
 IVIicrosoft® 
 
12 
 
 TABLE OF SECTION'S. 
 
 Page. 
 March 1, 1879 — Continued. 
 
 Section 13 290 
 
 Section 14 372, 375, 384, 387 
 
 Section 15 389 
 
 Section 16 393, 400, 407 
 
 Section 17 552, 553 
 
 Section 18 :.553, 589 
 
 Section 20 610 
 
 Section 21 310 
 
 June 14, 1879 (21 Stat., 20) 232 
 
 June 21, 1879, section 2 (21 Stat., 
 
 23) 86 
 
 December 20, 1879 (21 Stat., 59) 
 
 Section 1 : 285 
 
 Section 2 . 285 
 
 May 28, 1880 (21 Stat, 145) 
 
 Section 1 211 
 
 Section 2 215 
 
 Section 3 234 
 
 Section 4 239 
 
 Section 5 243 
 
 Section 6 234 
 
 Section 7 266 
 
 Section 8 265 
 
 Section 10 279 
 
 Section 11 281 
 
 Section 12 290 
 
 Section 13 290 
 
 Section 14 610 
 
 Section 15 610 
 
 Section 16 269 
 
 Section 18 163 
 
 June 9, 1880 (21 Stat., 167) 390 
 
 August 5, 1882, section 4 (22 Stat., 
 
 255) 695 
 
 August 8, 1882 (22 Stat., 372) 390 
 
 January 13, 1883 (22 Stat., 402). ._ 390 
 March 3, 1S83 (22 Stat,, 488) 
 
 Section 2 375 
 
 Section 5 380 
 
 March 3, 1883, section 2 (22 Stat., 
 
 563) 691 
 
 April 18, 1884 (23 Stat., 11) 675 
 
 May 1, 1884 (23 Stat., 17) 698 
 
 July 5, 1884 (23 Stat., 122) 653 
 
 July 7, 1884 (23 Stat., 172) 81,90 
 
 July 7, 1884, section 3 (23 Stat., 
 
 258) 690 
 
 April 29, 1886 (24 Stat, 15) 306 
 
 August 2, 1886 (24 Stat., 209) 160, 
 
 172, 430 
 August 4, 1886, section 1 (24 Stat., 
 
 218) 392 
 
 August 1, 1888 (25 Stat, 357) 648 
 
 August 8; 1888 (25 Stat., 387J 618 
 
 August 13, 1888, section 1 (25 Stat., 
 
 433) _— 639 
 
 October 18, 1888 (25 Stat., 560) 254 
 
 February 16, 1889 (25 Stat, 672)— 692 
 
 June 18, 1890 (26 Stat, 161) 316 
 
 June 18, 1890 (26 Stat, 169) 317 
 
 August 30, 1890, section 4 (26 Stat., 
 
 371) 663 
 
 October 1, 1890 (26 Stat, 567-625) 
 
 Section 10 607 
 
 Section 26 376 
 
 Section 27 372 
 
 Section 28 388 
 
 Section 29 389 
 
 Section 31 379 
 
 Section 32 399 
 
 Section .?3 374- 
 
 Section 34 397 
 
 Section 35 396 
 
 Section 42 326, 765, 8.33 
 
 Section 43 326,765,833 
 
 Section 45 327,766,834 
 
 Section 46 328,767 
 
 Section 47 329 
 
 Section 48 330 
 
 Section 49 768 
 
 Section 53 156 
 
 March 3, 1891, section 11 (26 Stat., 
 
 829) 650 
 
 March 3, 1891 (26 Stat, 1050) 206 
 
 July 16, 1892 (27 Stat., 183, 200, 
 
 201) 255, 272, 275, 276 
 
 Page. 
 
 March 3, 1893 (27 Stat, 751) 124,125 
 
 July 31, 1894 (28 Stat, 162) 
 
 Section 4 666 
 
 Section 12 663, 665 
 
 August 13, 1894 (28 Stat, 279) 612 
 
 August 18, 1894 (28 Stat, 416)—^- 660 
 August 27, 1894 (28 Stat, 509) 
 
 Section 34 104, 108 
 
 Section 37 115 
 
 Sections 38^7 553, 569-573 
 
 Section 48 193 
 
 Section 49 239, 241, 252 
 
 Section 50 244 
 
 Sections 51-59 247-250 
 
 Section 60 266 
 
 Section 62 274 
 
 Section 63 87 
 
 Section 64 85 
 
 Section 65 89 
 
 Section 66 : 275 
 
 Section 67 212 
 
 Section. 69 372 
 
 March 2, 1895, section 5 (28 Stat., 
 
 807) 72, 75, 617 
 
 March 2, 1895 (28 Stat, 814) 648 
 
 March 2, 1895 (28 Stat., 933) 692 
 
 May 28, 1896 (29 Stat, 140) 
 
 Section 4 665 
 
 Section 5 663 
 
 Section 6 661 
 
 Section 19 659 
 
 June 3, 1896 (29 Stat, 195) 207 
 
 June 6, 1896 (29 Stat, 253) 175,445 
 
 March 3, 1897 (29 Stat., 626). __ 291-295 
 July 24, 1897, section 9 (30 Stat, 
 
 151) 310 
 
 March 15, 1898, section 7 (30 Stat., 
 
 316) 56, 64 
 
 June 13, 1898 (30 Stat., 448) 
 
 Section 29 705 
 
 Section 30 705 
 
 Sections 36-49 176,451 
 
 July 7, 1898 (30 Stat., 656) 89 
 
 February 21, 1899 (30 Stat., 843) __ 234 
 February 24, 1899, section 4 (30 
 
 Stat, 889) 65 
 
 March 3, 1899 (30 Stat, 1349) 
 
 Section 1 245 
 
 Section 2 246 
 
 April 12, 1900 (31 Stat., 77) 
 
 Section 3 619 
 
 Section 14 620 
 
 Section 41 620 
 
 April 17, 1900, section 1 (31 Stat, 
 
 107) 81, 83, 87 
 
 April 30, 1900 (31 Stat., 141) 
 
 Section 5 618 
 
 Section 87 619 
 
 Section 104 619 
 
 May 12. 1900 (31 Stat, 177) 552 
 
 March 2, 1901, section 13 (31 Stat, 
 
 949) 451 
 
 March 2, 1901 (31 Stat., 956) 659 
 
 March 3, 1901, section 5 (31 Stat, 
 
 982, 1009) 54 
 
 March 8, 1902, section 6 (32 Stat, 
 
 54) 622 
 
 April 12, 1902 (32 Stat, 96)_ 308,451,705 
 April 28, 1902 (32 Stat, 120) 
 
 Section 1 82 
 
 Section 3 65 
 
 May 9, 1902 (32 Stat, 193) 
 
 Section 1 430 
 
 Section 2 172 
 
 SecHon 3 433 
 
 Section 4 161, 174, 438 
 
 Section 5 441 
 
 Section 6 443 
 
 Section 7 443 
 
 June 27, 1902 (32 Stat, 406) 708 
 
 June 28, 1902 (32 Stat., 492) 86 
 
 June 30, 1902 (32 Stat, .506) 552 
 
 Januai-y 13, 1903 (32 Stat, 770) 247 
 
 February 3, 1905 (33 Stat, 631, 652), 84 
 March 3, 1905, section 4 (33 Stat, 
 
 1257) 687 
 
 Digitized by Microsoft® 
 
TABLE or SECTIONS. 
 
 13 
 
 Page. 
 February 27, 1906, section 3 (34 
 
 Stat., 49) 08T 
 
 June 7, 1906, section 5 (34 Stat., 
 
 215) 344 
 
 June 7, 1906, sections 1, 2 (34 Stat., 
 
 217) -- 298 
 
 June 21, 1906 (34 Stat., 387) 157 
 
 June 22, 1906, sections 5, 6 (34 Stat., 
 
 389, 449) 696 
 
 June 29, 1906 (34 Stat., 618) 613 
 
 June 29, 1906, sections 1, 2 (34 Stat., 
 
 620) ^_. 620, 621 
 
 June 30, 1906, section 9 (34 Stat., 
 
 764) 088 
 
 June 30, 1906 (34 Stat., 816) 658 
 
 March 2, 1907 (34 Stat., 1250)— 300,301 
 May 22, 1908, section 4 (35 Stat., 
 
 244) 62 
 
 May 27, 1908, section 1 (35 Stat, 
 
 325) 130 
 
 February 4, 1909 (35 Stat., 594) 197 
 
 March 4, 1909, section 10 (35 Stat., 
 
 945, 1027) 689 
 
 March 4, 1909 (Criminal Code) (35 
 Stat., 1088) 
 
 Section 21 677 
 
 Section 28 679 
 
 Section 32 675 
 
 Section 35 680 
 
 Section 37 677 
 
 Section 39 675 
 
 Section 40 678 
 
 Section 46_^ 679 
 
 Section 47 079 
 
 Section 48 679 
 
 Section 65 674 
 
 Section 66 675 
 
 Section 71 675 
 
 Section 86 667 
 
 Section 87 668 
 
 Section, 88 668 
 
 Section 89 668 
 
 Section 90 669 
 
 Section 9] 669 
 
 Section 93 669 
 
 Section 94 669 
 
 Section 95 670 
 
 Section 96 670 
 
 Section 97 670 
 
 Section 99 071 
 
 Section 100 671 
 
 Section 101 671 
 
 Section 103 671 
 
 Section 109 702 
 
 Section 113 702 
 
 Section 117 676 
 
 Section 125 674 
 
 Section 128 678 
 
 Section 129 678 
 
 Section 140 674 
 
 Section 143 674 
 
 Section 145 677 
 
 Section 147 680 
 
 Section 148 680 
 
 Section 238 681 
 
 Section 239 681 
 
 Section 240 082 
 
 August 5. 1909 (36 Stat, 11) 
 
 Section 1 (Par. 500) 393 
 
 Section 21 607 
 
 Section 30 378 
 
 Section 31 380 
 
 Section 32— 399 
 
 Section 33 400 
 
 Section 34 378 
 
 Section 38 711 
 
 August 5, 1909 (36 Stat., 118, 125)- 616 
 
 March 23, 1910 (36 Stat., 241) 612 
 
 May 13, 1910 (36 Stat, 369) 87 
 
 June 17, 1910 (36 Stat, 468, 494)— 728 
 
 June 22, 1910 (.36 Stat, 590) 217,234 
 
 June 23, 1910 (36 Stat, 592) 90 
 
 .Tune 26, 1910 (36 Stat., 774, 780)— 728 
 
 February 24,- 1911 (36 Stat, 928)— 86 
 
 March 2, 1911 (36 Stat, 965) 130 
 
 March 2, 1911 (36 Stat, 1014) 207 
 
 March 2, 1911 (36 Stat, 1014) 234 
 
 Page. 
 March 3, 1911 (36 Stat., 1087) 
 
 Section 24 635 
 
 Section 33 040 
 
 Section 42 638 
 
 Section 43 038 
 
 Section 44 638 
 
 Section 51 039 
 
 Section 243 052 
 
 Section 256 037 
 
 April 9, 1912 (37 Stat., 81) 457 
 
 April 30, 1912 (37 Stat., 107) 
 
 Section 1 394 
 
 Section 7 394 
 
 June 4, 1912 (37 Stat,, 122) 258 
 
 July 27, 1912 (37 Stat, 240) 
 
 Section 1 710 
 
 Section 2 • 710 
 
 August 17, 1912 (37 Stat., 311) 049 
 
 August 22, 1912, section 5 (37 Stat, 
 
 414) 696 
 
 August 23, 1912 (37 Stat., 360) 
 
 Section 1 72 
 
 Section 4 694 
 
 Section 6 688 
 
 August 24, 1912, section 8 (37 Stat, 
 
 417, 487) 95 
 
 August 24, 1912, section 6 (37 Stat, 
 
 539, 555) 694 
 
 August 26, 1912, section 7 (37 Stat., 
 
 595, 626) 698 
 
 February 10, 1913 (37 Stat., 664)— 399 
 
 March 1, 1913 (37 Stat., 099) 296 
 
 March 3, 1913 (37 Stat., 733) 131 
 
 March 3, 1913 (37 Stat, 734) 729 
 
 March 4, 1913, section 4 (37 Stat, 
 
 739, 790) 698 
 
 March 4, 1913 (37 Stat, 1016) 118 
 
 August 24, 1913, section 7 (37 Stat., 
 
 487) 57 
 
 October 3, 1913 (38 Stat., 114) 
 
 Section I (Par. 404) 393 
 
 Section II 729 
 
 Section II (I) 108 
 
 Section II (Par. N) 55 
 
 Section IV (Par. C) 623,756 
 
 Section IV (Par. D) 621 
 
 Section IV (Par. K) 007 
 
 Section IV (Par. M) 411,608,757 
 
 Section IV (Par. N, subsec. 2)- 163, 302 
 
 Section IV (Par. 0) 611,759 
 
 Section IV (Par. P) 611,760 
 
 Section IV (Par. S) 761 
 
 October 22, 1913, section 1 (38 Stat, 
 
 208) 78 
 
 January 17, 1914, sections 1-6 (38 
 
 Stat 273 i 413, 414 
 
 July 16, 1914, section 1 (38 Stat, 
 
 454, 475) 72 
 
 July 18, 1914 (38 S^tat.. 517) 853 
 
 August 1, 1014 (38 Stat., 680) 
 
 Section 12 698 
 
 Section 13 84 
 
 October 22, 1914 (38 Stat, 745) 
 
 Section 1 762 
 
 Section 2 326, 327, 763 
 
 December 17. 1914 (38 Stat., 785)— 417 
 
 March 3, 1915 (38 Stat, 893) 176 
 
 March 4, 1915, section 1 (38 Stat, 
 
 1017) 275 
 
 March 4, 1915 (38 Stat., 1189) 625 
 
 April 27, 1010 (39 Stat., 54) 
 
 Section 1 691 
 
 Section 2 691 
 
 Mav 10, 1916, section 1 (39 Stat, 
 
 66) ■ 84,129 
 
 May 10, 1916, section 6 (39 Stat, 
 
 120) 701 
 
 July 1, 1916 (39 Stat, 262) 
 
 Section 3 67 
 
 Section 4 57 
 
 .July 8, 1916 (39 Stat., 354) 257 
 
 August 11, 1916 (39 Stat, 446) 463 
 
 August 23, 1916 (.39 Stat., 531) 649 
 
 August 23, 1916 (39 Stat., 532) 640 
 
 August 29, 1916 (39 Stat., 545) 
 
 Section 5 624 
 
 Section 11 624 
 
 Digitized by Microsoft® 
 
14 
 
 lABLE OF SECTIONS, 
 
 G51 
 
 185 
 625 
 
 791 
 
 581 
 
 Page, 
 September 6, 1916, section (39 
 Stat., Y26) 
 
 September 8, 191G, sections 1-903 
 
 "(39 Stat., 756)-^ - 793-845 
 
 Section T6__ 1 104, 108 
 
 Seitlan 2611-_ _"___: 848 
 
 Section' 201___ ' 847 
 
 Section 402 90, 217 
 
 Section 404 207 
 
 Section 410 792 
 
 February 14, 1917 (39 Stat., 903) 
 
 Section 1 185 
 
 Section 2S 185 
 
 Section 27 185 
 
 March 2, 1917, section 9 (39 Stat., 
 
 954) 621 
 
 Marcli 3, 1917 (39 Stat., ]000) 
 
 Section 200 845 
 
 • Section 201 845 
 
 Section 202 846 
 
 Section 203 846 
 
 Section 204 846 
 
 Section 205 847 
 
 Section 206_L__ 847 
 
 Section 207 847 
 
 Section 300 847 
 
 Section 301 848 
 
 Section 402-_: 848 
 
 March 3, 1917, secUon 5 (39 Stat, 
 
 1058, 1069) 296, 322, 335 
 
 March 3, 1917, section 12 (39 Stat., 
 1123, 1128) 
 
 March 3, 1017, sections 3-5 (39 
 Stat, 1132, 1133) 
 
 Api;il 17, 1917, section 1 (40 Stat., 
 3) :__ 
 
 April 24, 1917, section 1 (41) Stat., 
 35) 
 
 .Tune 15, 1917, Title Xl, sections 1- 
 
 23 (40 Stat, 217, 228) 602-604 
 
 August 10, 1917 (40 Stat., 273) 
 
 Section 15__ 200,318,330 
 
 Section 16 203 
 
 September 24, 1917 (40 Stat, 288) 
 
 Section 7 ^ 581 
 
 Section 11 582 
 
 Section 14 532,710,827,886 
 
 Octbijer 3, 1917, sections 1-1303 (40 
 
 Stat, 300) 849-902 
 
 Section 1010 131 
 
 Section 1110__ 297 
 
 October 6, 1917 (40 Stat, 345) 
 
 Section 1 56 
 
 Section 6 697 
 
 Section 7 687 
 
 April 4, 1918 (40 Stat., 502) 
 
 Section 3 S82 
 
 Section 532,710,827,886 
 
 April 5, 1918, section 16 (40 Stat, 
 500, 511) . '_ 
 
 July 1. 1918, section 1 (40 Stat, 
 042) 
 
 July r,, 1918 (40 Stat, 757) 
 
 Section 1 , 
 
 Section 4 
 
 Section 5 
 
 Section 6 
 
 July 9, 1918, section 3 (40 Stat., 
 844) 
 
 September 24, 1918, section 1 (40 
 Stat., 965) 
 
 October 1, 1918 (40 Stat, 1008) 
 
 November 21, 1918, section 1 (40 
 
 Stat., 1045) •__ 204, 320,333 
 
 February 24, 1010 (40 Stat, 1057) 
 
 Section 1 026 
 
 Sections 200-261 473-511 
 
 Sections 300-337 513-524 
 
 Sections 400^10 525-532 
 
 Sections 500-502 533-536 
 
 Sections 503,504 537 538 
 
 Section 600 193,336 
 
 Section 601 206 
 
 Section 602 212 
 
 219, 233, 234, 236, 264 
 Section 603 304 
 
 583 
 
 605 
 
 57 
 
 60 
 
 697 
 
 60 
 
 583 
 
 584 
 431 
 
 Page. 
 
 February 24, 1919 — ContiBued. 
 
 Section 604 195 
 
 Section 605 196,336 
 
 Section 606 269 
 
 Section 607 191, 317 
 
 Section 608 309 
 
 Section 009 313 
 
 Section 610 337 
 
 Section 611 338 
 
 Section 612 339 
 
 'Section 013 .339 
 
 Section 014 . 339 
 
 Section 615 340 
 
 Section 610 340 
 
 Section 017 320, 327 
 
 Section 618 S40 
 
 Section 619 341 
 
 Section 620 341 
 
 Sectioa 621 191, .342 
 
 Section 622 342 
 
 Section 023 217 
 
 Section. 624 280 
 
 Section 625 207 
 
 Section 620 280 
 
 Section 627 310 
 
 Section 628 343 
 
 Section 629 343 
 
 Section 630 343 
 
 Section 700 378, 401 
 
 Section 701 381 
 
 Section 702 381, 402 
 
 Section 703 401; 
 
 Section 704 .'571; 
 
 Sections 800-802 539-541 
 
 Sections 000-007 543-54!) 
 
 Section 1000 ^_ 178 
 
 Section 1001 17(1 
 
 Section 1002 182 
 
 Section 1003 183 
 
 Section 1004 184 
 
 Section 1005 184 
 
 Section 1000 417 
 
 Section 1007 423 
 
 Section 1008 427 
 
 Section 1009 184 792 
 
 Section 1100 r,5i. 574 
 
 Section 1101 ^ 554 
 
 Section 1102 554, 574 
 
 Section 1103_ 555 
 
 Section 1104 556 
 
 Section 1105 5.5{i 
 
 Section 1106 550 
 
 Section 1107 550 
 
 Sections 1200-1207 565-567 
 
 Section 1300__- 51 
 
 Section 1301 (a) 55 
 
 Section 1301 (b) 80 
 
 Section 1301 (c) 65 
 
 Section 1301 (d) 101 
 
 Section 1302 84 
 
 Section 1304 026 
 
 Section 1305 627 
 
 Section 1306 628 
 
 Section 1307 (328 
 
 Section 1308 628 
 
 Section 1309 629 
 
 Section 1310 629 
 
 Section 1311 _ 6.30 
 
 Section 1312 630 
 
 Section 1313 631 
 
 Section 1314 132, 631 
 
 Section 1315 270 
 
 Section 1316 137, 146 
 
 Section 1317 94-00, 104, 108 
 
 Section 1318 110 G31 
 
 Section 1319 632 
 
 Section 1320 615 
 
 Section 1400 632 
 
 Section 1402 633 
 
 Section 1403 845 
 
 Section 1404 902 
 
 Section 1405 633 
 
 Section 1407 298 
 
 Section 1408 633 
 
 Section 1409 034 
 
 March 3, 1918, sections 1-4 (40 Stat., 
 
 1309) 584-586 
 
 October 28, 1919 (41 Stat., ) __ 345 
 
 Digitized by Microsoft® 
 
COMMISSIONERS OF INTERNAL REVENUE SINCE THE 
 ORGANIZATION OF THE INTERNAL REVENUE OFFICE 
 IN 1862, 
 
 Geokge S. Boutwell, of Massachusetts, from July 17, 1862, to March 3, 1863, 
 
 both dates inclusive. 
 Joseph J. Lewis, of Pennsylvania, from March 18, 1863, to June 30, 1865. 
 William Oeton, of New York, from July 1, 1865, to October 31, 1865. 
 Edward A. Rollins, of New Hampshire, from November 1, 1865, to March 10, 
 
 1869. 
 
 Columbus Delano,* of Ohio, from March 11, 1869, to January 2, 1871. 
 
 John W. Douglass, of Pennsylvania, was Acting Commissioner from 
 November 1, 1870, to January 2, 1871. 
 Alfked Pleasonton, of New York, from January 3, 1871, . to August 8, 1871. 
 John W. Douglass, of Pennsylvania, from August 9, 1871, to Slay 14, 1875. 
 Daniel D. Pbatt, of Indiana, from May 15, 1875, to July 31, 187G. 
 Geeen B. Raum, of Illinois, from August 2, 1876, to April 30, 1883. 
 
 Henry C. Rogers, of Pennsylvania, Acting Commissioner from May 1, 
 1883, to May 10, 1883. 
 
 John J. Knox, of Minnesota, Acting Commissioner from May 11, 1883, 
 to May 20, 1883. 
 Walter Evans, of Kentucky, from May 21, 1883, to March 19, 1885. 
 Joseph S. Milleb, of West Virginia, from March 20, 1885, to March 20, 1889. 
 John W. Mason, of West Virginia, from March 21, 1889, to April 18, 1S93. 
 Joseph S. Miller, of West Virginia, from April 19, 1893, to November 26, 1896. 
 William St. John Forman, of Illinois, from November 27, 1896, to December 
 
 31, 1897. 
 Nathan Bay Scott, of West Virginia, from January 1, 1898, to February 28, 
 
 1899. 
 George W. Wilson, of Ohio, from March 1, 1899, to November 27, 1900. 
 
 Robt. Williams, jr., of Ohio, Acting Commissioner from November 28, 
 1900, to December 19, 1900. 
 John W. Yeekes, of Kentucky, from December 20, 1900, to April 30, 1907. 
 John G. Capers, of South Carolina, from June 5, 1907, to August 31, 1909. 
 Royal E. Cabell, of Virginia, from September 1, 1909, to April 27, 1913. 
 William H. Osbokn, of North Carolina, from April 28, 1913, to September 25, 
 
 1917. 
 Daniel C. Roper, of South Carolina, from September 26, 1917, to March 31, 1920. 
 William M. Williams, of Alabama, from April 1, 1920. 
 
 1 Mr. Delano was appointed and commissioned Secretary of the Interior November 1, 
 1870. ' He did not resign the ofBce of Commissioner of Internal Revenue, and therefore 
 becaire the legal holder of two offices, Commissioner of Internal Revenue and Secretary of 
 the Interior, as he might legally do, for the duties of the two offices are distinct and com- 
 patible. (Converse r. United States, 21 How., 468 ; United States v. Saunders, 120 U. S., 
 
 He continued to hold the office of Commissioner of Internal Revenue until his succes- 
 sor wa.S' appointed and qualified, but was absent from the internal-revenue office and dis- 
 charged the duties and received the salary of the office of Secretary of the Interior and 
 
 of that office only. . ,. „ . . ^ r ^ , t, • ., 
 
 Deputy Commissioner Douglass was Acting Commissioner of Internal Revenue m the 
 absence of Commissioner Delano (15 Stat, 168), and continued to be so until Alfred 
 Pleasonton was commissioned as Commissioner of Internal Revenue, January 3, 1871. 
 
 15 
 
 Digitized by Microsoft® 
 
TT" 
 
 Digitized by Microsoft® 
 
INTERNAL REVENUE TAXATION. 
 
 COXSTirCTIOXAL PROVISIONS KEGARDING TAXATION. 
 
 Art. 1. Sec. 2. CI. 3: " * * * direct taxes shall be appor- 
 tioned among the several States * * * according to their re- 
 spective numbers * * * » 
 
 Art. 1. Sec. 8. CI. 1: " The congress shall have power to lay and 
 collect taxes, duties, imposts, and excises * * * . ^^^^ ^y\ duties, 
 imposts, and excises shall be uniform throughout the United States." 
 
 Art. 1. Sec. 9. CI. ^: "No capitation, or other direct, tax shall 
 be laid, unless in proportion to the census or enumeration herein- 
 before directed to be taken." 
 
 Art. 1. Sec. 9. CI. 6: "No tax or duty shall be laid on articles 
 exported from any State." 
 
 Art. 1. Sec. 10. CI. 2: "No State shall, veithout the consent of 
 the Congress, lay any imposts or duties on imports or exports, except 
 what may be absolutely necessary for executing its inspection laws : 
 and the net produce of all duties and imposts, laid by any State on 
 imports or exports, shall be for the use of the Treasury of the United 
 States ; and all such laws shall be subject to the revision and control 
 of the Congress." 
 
 Am. Art. 16: "The Congress shall have power to lay and collect 
 taxes on incomes, from whatever source- derived, without apportion- 
 ment among the several States, and without regard to any census or 
 enumeration." 
 
 Am. Art. 18: " Section 1. After one year from the ratification of 
 this article the manufacture, sale, or transportation of intoxicating 
 liquors within, the importation thereof into, or the exportation 
 thereof from the United States and all territory subject to the juris- 
 diction thereof for beverage purposes is hereby prohibited. 
 
 " Sec. 2. The Congress and the several States shall have concur- 
 rent power to enforce this article by appropriate legislation. 
 
 " Sec. 3. This article shall be inoperative unless it shall have been 
 ratified as an amendment to the Constitution by the legislatures of 
 the several States, as provided in the Constitution, within seven years 
 from the date of the submission hereof to the States by the 
 Congress." 
 
 POWER or CONGRESS. 
 
 The Congress shall have power to lay and collect taxes, duties, 
 imposts, and excises, to pay the debts and provide for the common 
 defense and general welfare of the United States; but all duties, 
 imposts, and excises shall be uniform throughout the United States. 
 (Constitution of the United States, art. 1, sec. 8; McGuire v. Com- 
 monwealth, 3 Wall., 387; Pervear v. Commonwealth, 5 Wall., 533; 
 Collector v. Day, 11 Wall., 113, 13 Int. Eev. Eec, 141 ; United States 
 V. Singer, 15 Wall., Ill, 17 Int. Rev. Rec, 9; Scholey v. Rew, 23 
 Wall., 331.) 
 
 140184°— 20 2 17 
 
 Digitized by Microsoft® 
 
18 INTERNAL REVENUE TAXATION. 
 
 A general power is given to Congress to lay and collect taxes of 
 every kind or nature without any restraint, except only on exports ; 
 but two rules are prescribed tcft their government, namely, uni- 
 formity and apportionment. Three kinds of taxes, to wit, duties, 
 imposts, and excises by the first rule, and capitation, or other direct 
 taxes, by the second rule. (Hylton v. United States, 3 Dall., 171- 
 173.) 
 
 The power of Congress to tax is a very extensive power. It is 
 given in the Constitution with only one exception, and only two 
 qualifications. Congress can not tax exports, and it must impose 
 direct taxes by the rule of apportionment, and indirect taxes by 
 the rule of uniformity. Thus limited, and thus only, it reaches 
 every subject, and may be exercised at discretion. (License TaXj 
 Cases, 5 Wall., 463j 6 Int. Eev. Rec, 36.) 
 
 Subject to the limitations in the Constitution the taxing power 
 of Congress extends to all usual objects of taxation. (Knowlton v; ■ 
 Moore (1900), 178 U. S., 41 ; T. D. 129.) 
 
 The authority conferred upon Congress by the Constitution to 
 lay and collect taxes, duties, imposts, and excises is exhaustive, 
 and embraces every conceivable power of taxation. (Brushaber v. 
 Union Pacific R. R. Co., 240 U. S., 1 ; T. D. 2290.) 
 
 APPOETIONjrENT AND UNIFOEMITT OF TAXES. 
 
 Direct taxes must be apportioned, while indirect taxes must be 
 uniform throughout the United States. (Income Tax Cases, 157 
 U. S., 429 ; 158 Id., 6Q1 ; Nicol v. Ames, 173 U. S., 509.) 
 
 A tax on bank cijrculation is not a direct tax, and niay be laid 
 without apportionment. (Springer v. United States, 102 U. S., 
 586; 27 Int. Eev. Rec, 78; Veazie Bank v. Fenno. 8 Wall., 533, 
 10 Int. Rev. Rec, 195.) 
 
 A tax upon the business of an insurance company is not a direct 
 tax, but a duty or excise. (Pacific Insurance Companv v. Soule. 7 i 
 Wall., 433.) * 
 
 The tax imposed by the act of June 13, 1898 (war-revenue act)j 
 on sugar refining companies was not a direct tax but a "special 
 excise tax." (Spreckles Sugar Refining Co. v. McClain, 192 U. S.. 
 397; T. D. 760.) 
 
 The uniformity clause of the Constitution relates only to geo- > 
 graphical uniformity. (Head Money Cases, 112 U. S., 580.) i 
 
 The corporation excise tax provision of the act of August 5. 
 1909, is constitutional. The tax is not a direct tax, but an impost 
 or excise which Congress has power to impose. (Flint v. Stone- 1 
 Tracy Company, 220 U. S., 107; T. D. 1685.) 
 
 The income tax act of October 3, 1913, declared constitutional; 
 it does not violate the rules of apportionment and uniformity 
 (Brushaber v. Union Pacific R. R. Co., 240 U. S., 1 ; T. D. 2290.) 
 
 POWERS AS BETWEEN UNITED STATES AND A STATE. 
 
 No State court can by injunction or otherwise prevent Federal 
 officers from collecting Federal taxes. The Government of the 
 United States within its sphere is independent of State action 
 (Keely v. Sanders, 99 U. S., 443.) 
 
 Digitized by Microsoft® 
 
INTERNAL EEVENUE TAXATION. 19 
 
 The same principle which denies to a State power to raise a reve- 
 nue by taxation on Federal property, or sources of revenue, or means 
 of carrying on its duties, forbids taxation of State re\enue for Fed- 
 eral purposes. (12 Op. Atty. Gen,, 282; C!ollector v. Day, 11 Wall., 
 113; Ambrosini v. United States, 187 U. S., 1; T. D. 693.) 
 
 As the States can not tax the powers, the operations, or the prop- 
 erty of the United States, nor the means which they employ to carry 
 their powers into execution, so it has been, held the United States have 
 no power under the Constitution to tax either the instrumentalities 
 or the property of a State. (Pollock v. Trust Go., 157 U. S., 584.) 
 
 A municipal corporation is a portion of the sovereign power of the 
 State, an<i is not subject to taxation by Congress upon its municipal 
 revenues. {United States v. EailroadCo., 17 Wall., 322.) 
 
 The exemption of State agencies does not extend to those used by 
 the State in carrying on an ordinary private business. (South Caro- 
 lina V. United States, 199 U. S., 437; T. D. 961.) 
 
 COXSTEUCTION OF STATUTES. 
 
 Intention.: In construing statutes the fundamental rule is to get at 
 the intention of the legislature. (In re Matthews, 109 Fed., 603.) 
 
 Legislative intention is the guide to true judicial interpretation. 
 (United States v. 100 Barrels of Spirits, 12 Int. Eev. Eec, 153.) 
 
 A well-settled rule of interpretation is that a legislative act is to 
 be interpreted according to the intention of the legislature apparent 
 upon its face. (Wilkinson v. Deland, 2 Pet., 627; 22 Op. Atty. Gen., 
 363.) 
 
 The intention must be found from the language used. (Merritt v. 
 Welsh, 104 U. S., 694.) 
 
 It is the duty of the court to study the whole statute, its policy, its 
 spirit, its purpose, its language, and, giving to the words used their 
 obvious and natural import, to read the act with these aids in such 
 wav as will best effectuate the intention of the legislature. (United 
 States V. 100 Barrels Spirits, 12 Int. Eev. Eec, 154.) 
 
 Liberal or strict construction. — Eevenue laws are not, like penal 
 acts, to be construed strictly in favor of the defendants. They are 
 rather to be regarded as remedial in their character, passed to pro- 
 mote the public good, and should be so construed as to carry out the 
 intention of the legislature in passing them. (Cliquot's Champagne, 
 3 Wall., 114; 4 Int. Eev. Eec, 58; United States v. 28 Casks of Wine, 
 7 Int. Eev. Eec, 4; United States v. 36 Barrels of High Wines, 12 
 Id., 40; Fed. Cas. Ko. 16468; 7 Blatch., 459; United States v. 100 
 Barrels of Spirits, 12 Id., 153 ; United States v. Stowell, 133 U. S., 
 1; 36 Int Eev. Eec, 30.) 
 
 As a general rule the construction of these statutes must be such as 
 is most favorable to their enforcement. There is no liberal inter- 
 pretation in favor of the individual to be indulged in. (18 Op. Atty. 
 Gen., 246; 31 Int. Eev. Eec, 246.) Eevenue laws are to be con- 
 strued liberally to carry out the purposes of their enactment (Suiythe 
 i>. Fiske, 23 Wall., 380; Taylor v. United States, 3 How., 197), and 
 the rule of construction applicable to statutes generally, that what is 
 implied in them is as much a part of the enactment a§ what is ex- 
 pressed, holds in regard to them. (United States v. Hodson (1870), 
 
 10 Wall., 395 ; 12 Int. Eev..Eec.. 213.) ^^ 
 ' ' Digitized by Microsoft® 
 
20 INTERNAL EEVENXJE TAXATION. 
 
 They should be construed with reasonable fairness to the citizen, 
 (United States v. Distilled Spirits, 10 Blatch., 428.) 
 
 Statutes should receive a sensible construction, such as will effec- 
 tuate the legislative intention, and avoid, if possible, an unjust or 
 absurd construction. (In re Chapman, 166 U. S., 661.) 
 
 The laws providing for forfeiture by violators of revenue laws are 
 not to be governed by the rule of strict construction applied to penal 
 statutes in general, but are to have a reasonable construction. (United 
 States V. 246J Pounds Tobacco, 103 Fed., 791.) 
 
 Statutes are to receive a reasonable construction, and doubtful 
 words and phrases are to be construed, if possible, so as not to pro- 
 duce mischievous results. But when the words are plain and unam- 
 biguous, there is no room for construction, and nothing is left for 
 the court but to give them their full effect. (The Samuel E. Spring 
 (1886), 27 Fed., 776.) 
 
 Laws of doubtful or double meaning should not be too harshly 
 construed. (United States v. 1,412 Gallons of Distilled Spirits, 17 
 Int. Eev. Eec, 86.) 
 
 There is no reason requiring a statute imposing special internal- 
 revenue taxes to be construed liberally in favor of the Govermnent, 
 but it should be construed fairly and judicially with reference to 
 both parties. (De Bary v. Souer, 101 Fed., 425.) 
 
 Eevenue and duty laws are not in the sense of the law penal acts, 
 and are not, therefore, to be construed strictly. Nor are they, on the 
 other hand, remedial, to be construed with extraordinary liberality, 
 but are to be construed according to the true import and meaning of 
 their terms, and legislative intention is the only guide of inter- 
 pretation. (United States v. Breed, Fed. Cas. No. 1222; 1 Sumner, 
 159; United States v. Thompson, 189 Fed., 939.) 
 
 In the interpretation of statutes levying taxes, it is the established 
 rule not to extend their provisions, by implication, beyond the clear 
 import of the language used, or to enlarge their operations so as to 
 embrace matters not specifically pointed out. Doubts are resolved 
 against the Government. — (Gould v. Gould, 245 U. S., 151.) 
 
 The rule that the internal-revenue law should be strictly construed 
 in favor of exemption is but a rule of construction, which yields 
 when the intent of the statute is manifest. (In re Hawley, 220 
 Fed. 372.) 
 
 Where income tax law is doubtful, doubt should be resolved in 
 favor of taxpayer against the Government. (Miller v. Gearin, 258 
 Fed., 225.) 
 
 Meaning of language : The words of the statute are to be taken in 
 the sense in which they will be understood by that public in which 
 they are to take effect. Science and skill are not required in their 
 interpretation, except where scientific or technical terms are used. 
 The liability of an instrument to stamp duty, as well as the amount 
 of such duty, is determined by the form and face of the instrument, 
 and can not be affected by proof of facts outside of the instrument 
 itself. (United States v. Isham, 17 Wall., 496 ; 19 Int. Eev. Eec, 84.) 
 
 Punctuation no part of the statute. (Hammock v. Loan and Trust 
 Company, 105 U. S., 77, 84, 85; 28 Op. Atty. Gen., 537.) 
 
 Punctuation not being part of a statute, repunctuation may be 
 made if necessary to avoid absurd and incongruous results. (T. D. 
 32281. ) Digitized by Microsoft® 
 
INTEKXAL REVENUE TAXATION. 21 
 
 Courts are not at liberty, by construction or legal fiction, to include 
 subjects of taxation not within the terms of the la^v. (United States 
 V. Watts, 1 Bond, 580; 1 Int. Eev. Eec., 17.) 
 
 Duties are never imposed on the citizens upon vague or doubtful 
 interpretations. (Hartranft v. Weigmann, 121 U. S., 609, and cases 
 there cited.) 
 
 Extrinsic aids: Words spoken by members in debate, or the motives 
 of members, not to be considered in construing statutes ; but courts 
 in construing a statute may, with propriety, recur to the history of 
 the times when it was passed. (United States v. Union Pacific Rail- 
 road Company, 91 U. S., 72-79.) 
 
 Debates in Congress as sources of information for construction of 
 statutes. (27 Op. Atty. Gen., 68.) 
 
 The courts maj- look to the history of the legislation upon the 
 subject of which the statute treats, and the history of the times in 
 which it was enacted, as well as the general history of the country, 
 to determine the purpose that the Govermnent sought to accomplish. 
 ^Church of the Holy Trinity v. United States, 143 U. S., 457.) 
 
 In case of ambiguity in a statute contemporaneous and uniform 
 executive construction is regarded as decisive. (Brown v. United 
 States, 113 U. S., 568; also decisions cited by Attorney General in 
 letter to Secretary of Treasurv. Xov. 17, 1885, 31 Int. Eev. Eec, 
 382 ; Nunn v. Gerst Brewing Co., 99 Fed., 941.) 
 
 ^Tiere the language of a series of statutes is dubious, and open to 
 different interpretations, the construction put upon them by the 
 executive department charged with their execution has great and 
 generally controlling force with the court. (St. Paul, Minneapolis, 
 etc., Eailway Co. v. Phelps, 137 U. S.. 528; see 19 Op. Attv. Gen.. 
 
 177.) 
 
 A construction of a doubtful or ambiguous statute by the executive 
 department charged with the execution, in order to be binding upon 
 the courts, must be long continued and unbroken. (Merritt v. Cam- 
 eron, 137 U. S., 542.) 
 
 It is a rule well established that the construction given to a statute 
 by those charged with the duty of executing it will be given great 
 weight by the courts if the true construction be doubtful (United 
 States v.'Hill, 120 U. S., 169, and cases cited, p. 182) ; but this rule 
 has no application where the statute is not ambiguous or where it 
 will not bear the interpretation put upon it by the executive officers. 
 (Swift Company v. United States, 105 U. S., 691, 695; United States 
 V. Graham, 110 U. S., 219 ; United States v. Tanner, 147 U. S., 661 ; 
 United States v. Alger, 152 U. S., 384, 397.) - 
 
 A long continued and uniform interpretation, put by the executive 
 and legislative departments of the Government, upon a clause in the 
 Constitution should be followed by the judicial department unless 
 such interpretation is manifestly contrary to its letter or spirit. 
 (Downes v. Bidwell, 182 U. S., 244.) 
 
 A uniform construction by the department, put upon a doubtful 
 statute, has great weight with the court in construing it, and, where 
 the practice has been followed for a long time, the court will accept 
 the department's interpretation as the proper one. (United States v. 
 Twitchell Co., 184 Fed., 526.) 
 
 T^Tiile an act of Congress must be accepted for the purpose of in- 
 terpretation in the ioiWUzWiitml^Offm^&Mly passed, and can not 
 
22 INTERIM AL EEVENUB TAXATION. 
 
 be altered or amended to conform to the meaning given it by indi- 
 vidual members who advocated its passage, or by a committee which 
 may have discussed it in a report, such expressions of opinion are 
 entitled to weight in construing the law. (Penn. Mut. Life Ins. Co. 
 V. Lederer, 247 Fed. 659; reversed on another point by 258 Fed. 81.) 
 
 Construction with reference to other Imps: Statutes in pari ma- 
 teria are to be construed together, and repeals by implication are not 
 favored if the acts can reasonably stand together. (Harrington's 
 Distilled Spirits, 11 Wall., 356, 13 Int. Kev. Kec, 193; United States 
 V. 100 Barrels of Spirits, 12 Id., 153 ; United States i>. Cook County 
 National Bank, 25 Id., 266.) ^ ' 
 
 Internal-revenue acts should be interpreted in harmony with the 
 tariff legislation of the country. (Taylor v. Treat (190T), 153 Fed., 
 656.) 
 
 It is a settled rule that where there are two consistent acts relating 
 to the same subject, effect is to be given to both of them. (Chicago, 
 etc., v. United States, 127 U. S'., 406 ; Landram -v. United States. 118 
 U. S., 81; 32 Int. Rev. Eec, 151.) 
 
 General laws relating to intei'nal revenue not affected by subse- 
 quent laws. Subsequent legislation does not supersede general laws 
 unless the contrary clearly ajipears. (United States v. Barnes, 222 
 U. S., 513; T.D. 1751.) 
 
 Where there are two acts upon the same subject they must stand 
 together if possible. (28 Op. Atty. Gen., 70.) 
 
 Statute as a whole: Statutes should be so construed, if practi- 
 cable, that one section will explain and support and not defeat or 
 destroy another section. (Bemier v. Bernier, 147 U. S., 242.) 
 
 The same statute may be in part constitutional and in part uncon- 
 stitutional; and if the parts are wholly independent of each other, 
 that which is constitutional may stand while that which is uncon- 
 stitutional will be rejected. Unless it be impossible to avoid it, a 
 general 'revenue statute should never be declared inoperative in all 
 its parts because a particular part relating to a distinct subject may 
 be invalid. (Field v. Clark (1892), 143 U. S., 649; 38 Int. Eev. Rec, 
 285.) 
 
 Retroactive operation: A statute is construed as prospective unless 
 the intention is clearly expressed that it is retroactive. (Flint v. 
 Stone-Tracy Co., 220 U. S., 108; T. D. 1685.) 
 
 Presumption: When an act of Congress is claimed to be unconsti- 
 tutional, the presumption is in favor of its validity, and it is only 
 when the question is free from any reasonable doubt that courts 
 should hold an act in violation of that fundamental instrument upon 
 which ail the powers of the Government rest. (Nicol v. Ames, 173 
 U. S., 509.) 
 
 The presumption is in favor of every legislative act. (Brown v. 
 Maryland, 12 Wheat, 419; T. D. 1786.) 
 
 TIME WHEN AN ACT TAKES EFFECT. 
 
 A law of Congress wtich contains no provision as to the time when 
 it shall take effect commences and takes effect as a law from the 
 moment it receives the approbation of the President. As a general 
 rule, it is not competent to go into the division of a day. (3 Op. Atty. 
 G«n., 82. ) Digitized by Microsoft® 
 
INTERNAL, BEVENUE TAXATION. 23 
 
 For most purposes the law regards the entire day as an indivisible 
 unit. But when the priority of one legal right over another, depend- 
 ing on the* order of events occurring on the same day, is involved, 
 this rule is necessarily departed from. (National Bank v. Burk- 
 hardt, 100 U. S., 686.) 
 
 In the absence of proof there is a presumption that an act was 
 signed on the first mmute of the day when it took effect, but it is 
 competent to show by proof the exact time when the law was ap- 
 proved by the President, and when this is made to appear the law 
 can only be given effect from that time. (Carriage Company v. 
 Stengel, 37 C. C. A., 210; 95 Fed., 637; Nunn v. William Gerst Brew- 
 ing Co., 99 Fed., 939.) 
 
 The case of United States v. Iselin (87 Fed., 194) contains a very 
 full discussion of the subject by the Board of General Appraisers. 
 
 When necessary to determine conflicting rights courts of justice 
 will take cognizance of the fractions of a day. (Louisville v. Sav- 
 ings Bank (1881), 104 U. S., 469.) 
 
 The act of March 3, 1875, took effect from the time it was approved 
 and not at the commencement of the day. (Salmon v. Burgess, 97 U. 
 S., 381; 25 Int. Rev. Eec, 31.) 
 
 When the act of August 28, 1894, went into effect. (Burr v. United 
 States, 159 U. S., 78.) , 
 
 The act of July 24, 1897, became a law only from the moment of its 
 approval by the President, which was 6 minutes past 4 o'clock p. m. 
 (Washington time) on July 24, 1897. (United States v. Iselin, 87 
 Fed., 194; United States v. Stoddard, 89 Fed., 699; affirmed by 
 the United States circuit court of appeals, 91 Fed., 1005; 34 
 C C. A., 175.) The Government, on the advice of the Attorney 
 General, acquiesced in said decisions without seeking to prosecute 
 any appeal to the United States Supreme Court. (T. D. 20627; T. D. 
 20700.) 
 
 The act of June 13, 1898, known as the " war-revenue act," took 
 effect on the day next succeeding the day of its passage — ^that is, on 
 June 14, 1898, except as otherwise provided for. (Sec. 51.) 
 
 The act of April 12, 1902 (war-revenue repeal act), took effect 
 July 1, 1902, except as otherwise specially provided for in section 10. 
 
 The act of August 5, 1909 (Payne- Aldrich tariff act), took effect, 
 unless otherwise specially provided, on the day following its passage. 
 
 The act of October 3, 1913, the act of September 8, 1916, the act 
 of October 3, 1917, and the act of February 24, 1919, took effect the 
 day following their passage, imless otherwise specially provided. 
 
 United States Supreme Court Decisions Under Act of August 
 
 5, 1909. 
 
 Inderal corporation excise tax. 
 
 ConstitutioTmlity of Aot: Flint v. Stone-Tracy Co., 220 U. S. 107 
 (T. D. 1685) ; McCoach v. Minehill Ry. Co., 228 U.- S. 295 (T. D. 
 1847) ; United States v. Whitridge, 231 U. S. 144 (T. D. 1896) ; 
 Stratton's Independence v. Howbert, 231 U. S. 399 (T. D. 1913) ; 
 Anderson v. Forty-two Broadway Co., 239 U. S. 69 (T. D, 2261). 
 
 " Organized for profit "; Von Baumbach v. Sargent Land Co., 242 
 
 U. S. 503 (T. D. 2436)^. .^. _, ^ ,„. ^^ 
 
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24 INTERNAL EBVENTJE TAXATIOIT. 
 
 "■Domg hmiTiess" : Flint v. Stone-Tracy Co., 220 U. S. 107 (T. D. 
 1685) ; Zonne v. Minneapolis Syndicate, 220 U. S. 187; McCoach v. 
 Minehill Ry. Co., 228 U. S. 295 (T. D. 1847) ; Stratton's Independ- 
 ence V. Howbert, 231 U. S. 399 (T. D. 1913) ; United States v. 
 Emery, 237 U. S. 28 (T. D. 2188) ; Von Baumbach v. Sargent Land 
 Co., 242 U. S. 503 (T. D. 2436). 
 
 Deductions in determining net income: Anderson v. Forty-two 
 
 Broadway Co., 239 U. S. 69 (T, D. 2261) ; McCoach v. Insurance 
 
 Co. of N. America, 244 U. S. 585 (T. D. 2501) ; Doyle v. Mitchell 
 
 ' Bros. Co., 247 U. S. 179 (T. D. 2723) ; Goldfield Consol. Mines Co. v. 
 
 Scott, 247 U. S. 126 (T. D. 2722). 
 
 Depreciation: Stratton's Independence v. Howbert, 231 U. S. .399 
 
 (T. D. 1913) ; Von Baumbach ■v. Sargent Land Co., 242 U. S. 503 
 
 (T. D. 2436) ; United States v. Biwabik Mining Co., 247 U. S. 116 
 
 (T. D. 2721) ; Doyle v. Mitchell Bros. Co., 247 U. S. 179 (T. D. 
 
 ■2723). 
 
 What is '■'■ income''\' Stratton's Independence v. Howbert, 231 U. S. 
 399 (T. D. 1913) ; Von Baumbach v. Sargent Land Co., 242 U. S. 
 503 (T. D. 2436) ; Doyle v. Mitchell Bros. Co., 2^7 U. S. 179 (T. D. 
 2723) ; United States v. Cleveland, etc., Ey. Co., 247 U. S. 195 (T. 
 D. 2725) ; Hays v. Gauley Mountain Coal Co., 247 U. S. 189 (T. D. 
 2724) ; Altheimer & Eawlings Investment Co. v. Allen, 248 U. S. 
 578 (T. D. 2686). 
 
 Massachusetts real estate trwst not within Act: Eliot v. Freeman, 
 220 U. S. 178. 
 
 United States Supreme Court Decisions Under Act of October 
 
 3, 1913. 
 
 INCOME TAX. 
 
 Constitutionality of act: Brushaber v. Union Pacific E. E. Co., 
 240 U. S. 1 (T. D. 2290) ; Stanton v. Baltic Mining Co., 240 U. S, 
 103 (T. D. 2303) ; Tyee Eealty Co. v. Anderson, ^40 U. S. 115 (T. D. 
 2300) ; Dodge v. Osborn, 240 U. S. 118 (T. D. 2301) ; (Eecovery of 
 tax under E. S., sees. 3220, 3226, 3227) ; Dodge v. Brady, 240 U. S. 
 122 (_T. D. 2302) ; Peck & Co. v. Lowe, 247 U. S. 165 (T. D. 2726). 
 
 Joint-stocJc association: Massachusetts real estate trust held not to 
 be joint-stock association. — Crocker v. Malley, 249 U. S. 223 (T. D. 
 2816). 
 
 Property of nonresident alien owned in United States: De Ganay 
 V. Lederer, June 1, 1919 (T. D. 2876). 
 
 What is '■income": Alimony paid to a divorced wife under a de- 
 cree of court held not " income." — Gould v. Gould, 245 U. S. 151. 
 
 Stock dividend representing surplus profits earned prior to Janu- 
 ary 1, 1913, not taxable to shareholders as income. — Towne v. Eisner, 
 245 U. S. 418 (T. D. 2634). 
 
 Net income of a corporation derived from exporting goods from 
 the States and selling them abroad is subject to be taxed as part of 
 the " entire net income arising or accruing from all suorces." — Peck 
 & Co. V. Lowe, 247 U. S. 165 (T. D. 2726). 
 
 Increase in value of timberlands prior to March 1, 1913, when 
 distributed to shareholders on liquidation of corporation, held not 
 " income."— Lynch v. Turrish, 247 U. S. 221 (T. D. 2729). 
 Digitized by Microsoft® 
 
INTEENAL REVENUE TAXATION. 25 
 
 Accumulations accruing to corporation through surplus earnings 
 or appreciation in property value prior to March 1, 1913, are capi- 
 tal and not income. — Southern Pacific Co. v. Lowe, 217 U. S. 330 
 (T. D. 2730). 
 
 Dividends of a corporation paid to shareholders after March 1, 
 1913, whether from current earnings or from surplus accumulated be- 
 fore that date, held taxable to shareholders as income unlier the 
 " surtax " provision. (Lynch v. Turrish, 247 U. S. 221 and South- 
 ern Pac. Co. V. Lowe, 247 U. S. 330, distinguished.) — Lynch v. 
 Hornby, 247 U. S. 339 (T. D. 2731). 
 
 A dividend by a corporation of shares owned by it in another cor- 
 poration is not a stock dividend and is subject to tax like an equiva- 
 lent distribution of money. (Towne v. Eisner, 245 U. S. 418, dis- 
 tinguished; Lynch v. Hornby, 247 U. S. 339, affirmed.) — Peabody v. 
 Eisner, 247 U. S. 347 (T. D. 2732). 
 
 Dividends, by subsidiaries to a company holding all their stock 
 and controlling them in conducting a single enterprise, out of earn- 
 ings accumulated prior to January 1, 1913, are not taxable as in- 
 come.— Gulf Oil Corp. V. Lewellyn, 248 U. S. 71 (T. D. 2783). 
 
 Digitized by Microsoft® 
 
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INTERNAL REVENUE LEGISLATION. 
 
 The Revised Statutes were compiled imder an act of June 27, 1866 
 (14 Stat., 74). 
 
 A list of acts respecting internal-revenue duties, from the first act 
 (act of March 3, 1791) to April 28, 1828, is published in United 
 States Statutes at Large, Volume 1. 
 
 ACTS OF CONGRESS RELATING TO INTERNAL REVENUE ENACTED SINCE 
 JULY 4, 1861," AND BEFORE DECEMBER, 1873. 
 
 [Not inclucling private acts, nor appropriation acts passed prior to the enact- 
 ment of the Revised Statutes, June 22, 1874.] 
 
 Revised Statutes, Title XXXV, Sectioxs 3140-3465. 
 
 No reference can be had to the original statutes to control the construction of 
 any section of the Revised Statutes when its meaning Is plain, but vrhere 
 there Is a substantial doubt as to the meaning of the language used In the 
 revision the old law Is. a valuable source of information. (United States 
 V. Bowen, 100 U. S., 508, 513; United States r. Lacher, 134 U. S., 624.) 
 
 In- construing any part of the Revised Statutes it is admissible and often neces- 
 sary to recur to its connection in the act of which it was originally a part. 
 (United States v. Hirsch, 100 U. S., 35.) 
 
 In case of ambiguous language In the Revised Statutes or uncertainty as to the 
 true construction to be given to the words of any section, previous acts on 
 the same subject may be referred to and examined for light on the object 
 and intent of Congress as shown by the course of legislation, in the same 
 manner as statutes in pari materia relating to the same subject may alway.s 
 be taken, compared, and construed together. ("Wright v. United States, 15 
 Ct. Cls., 87. See also United States -i'. Claflin, 97 U. S., 546, and opinion of 
 First Comptroller Porter in Kansas claim for 5 per cent ni>t proceeds of 
 public lands, 1 Lawrence Dee., 43.) 
 
 No inference or presumption of a legislative construction is to be drawn by 
 reason of the title under which any particular section is placed. (Sec. 
 5600, R. S.) 
 
 An act to provide increased revenue from imports, to pay interest 
 on the public debt, and for other purposes, approved August 5, 1861 
 (12 Stat., 292.) See act June 7, 1862 (12 Stat., 422) . 
 
 Direct tax and income. The act of March 2, 1891 (26 Stat., 822), au- 
 thorized the return to the States of the direct tax collected. 
 
 An act to provide internal revenue to support the Government and 
 to pay interest on the public debt, approved July 1, 1862 (12 Stat., 
 432). 
 
 Office of Internal Revenue created. 
 
 Income tax. — Under this act the tax was 3 per cent on incomes over 
 $600 and not over $10,000; over $10,000, 5 per cent. Act of March 3, 
 1865, over $600 and not over $5,000, 5 per cent ; over $5,000, 10 per cent 
 on excess over $5,000. Act of March 2, 1867, over $1,000, 5 per cent. 
 Act of July 14, 1870, over $2,000, 24 per cent. Income tax expired by 
 limitation December 31, 1871. No Income tax was collected under the act 
 of June 30, 1864, as It was amended- by the act of March 3, 1865, before 
 it was collectible. 
 
 Imposed tax on cotton. 
 
 1 On this date Congress convened in Its first (extraordinary) session after the com- 
 mencement of the War of the RebeUion, at which session was commenced the legisla- 
 tion which has since produced the present system of Internal revenue taxation. 
 
 Digitized by Microsoft® 27 
 
28 INTBENAL, KEVENXJE LAWS. 
 
 An act increasing temporarily the duties on imports, and for other 
 purposes, approved July 14, 1862 (12 Stat., 543, 560). 
 
 Sections 24 and 25 relate to internal revenue. 
 
 An act to impose an additional duty on sugars produced in the 
 United States, approved July 16, 1862 (12 Stat., 588). 
 
 Joint resolution to amend section 77 of " An act to provide internal 
 revenue to support the Government and to pay interest on the public 
 debt," and for other purposes, approved July 17, 1862 (12 Stat., 627.) 
 
 i An act to amend an act entitled " An act to provide internal reve- 
 nue to support the Government and to pay interest on the public 
 debt," approved July 1, 1862. Approved December 25, 1862 (12 
 Stat., 632). 
 
 I An act to provide ways and means for the support of the Govern- 
 ment, approved March 3, 1863 (12 Stat., 709). 
 
 ' Section 7, bank circulation. 
 
 An act to amend an act entitled " An act to provide internal reve- 
 nue to support the Government and [to] pay interest on the public 
 debt," approved July 1, 1862, and for other purposes. Approved 
 March 3, 1863 (12 Stat., 713). 
 
 An act to prevent and punish frauds upon the revenue, to provide 
 for the more certain and speedy collection of claims in favor of the 
 United States, and for other purposes, approved March 3, 1863 (12 
 Stat., 737). 
 
 Joint resolution to provide for the printing annually of the report 
 of the Commissioner of Internal Revenue, approved January 13, 
 1864 (13 Stat., 400). 
 
 An act to increase the internal revenue, and for other purposes, ap- 
 proved March 7, 1864 (13 Stat., 14). 
 
 An act to provide internal revenue to support the Govermnent, to 
 pay interest on the public debt, and for other purposes, approved 
 June 30, 1864 (13 Stat., 223). 
 
 Inspection stamps required on cigars. Xo money value. 
 
 Joint resolution imposing a special income duty [for the year end- 
 ing December 31 next preceding October 1, 1864], approved July 4, 
 1864 (13 Stat., 417). 
 
 An act to amend an act entitled " An act to provide internal reve- 
 nue to support the Government, to pay interest on the public debt, 
 and for other purposes," appi-oved June 30, 1864. Approved Decem- 
 ber 22, 1864 (13 Stat., 420). 
 
 An act to amend an act entitled " An act to provide internal reve- 
 nue to support the Government, to pay interest on the public debt, 
 and for other purposes," approved June 30, 1864. Approved March 
 3, 1865 (13 Stat., 469). 
 
 Inspection stamps required on tobacco and snuff. No money value. 
 
 An act amendatory of certain acts imposing duties upon foreign 
 importations, approved March 3, 1865 (13 Stat., 491). 
 
 An act authorizing the Secretary of the Treasury to appoint assist- 
 ant assessors of internal revenue, approved January 15, 1866 (14 
 Stat., 2). 
 
 Digitized by Microsoft® 
 
INTERNAL REVENUE LAWS. 29 
 
 An act to declare the meaning of certain parts of the internal- 
 revenue act, approved June 30. 1864, and for other purposes. Ap- 
 proved March 10, 1866 (14 Stat., 4). 
 
 An act to reduce internal taxation and to amend an act entitled 
 "An act to provide internal revenue to support the Government, to 
 pay interest on the public debt, and for other purposes," approved 
 June 30, 1864, and acts amendatory thereof. Approved July 13, 
 1866 (14 Stat., 98). 
 
 First act reducing taxation. Stamps first required on fermented liquors. 
 Changing " Licenses " to "Special taxes." 
 
 An act to authorize the refunding of certain taxes, approved July 
 27, 1866 (14 Stat., 301). 
 
 An act amendatory of section 13 of an act entitled "An act to 
 amend an act entitled 'An act to provide internal revenue to support 
 th Government, to pay interest on the public debt, and for other 
 purposes,' approved June 30, 1864," approved March 3, 1865. Ap- 
 proved July 27, 1866 (14 Stat., 301). 
 
 Joint resolution to prevent the further enforcement of the joint 
 resolution (No. 77) approved July 4, 1864, against officers and sol- 
 diers of the United States who have been honorably discharged, so as 
 to relieve them from the further payment of the special 5 per cent 
 income tax imposed thereby, approved July 28, 1866 (14 Stat., 371). 
 
 Joint resolution to amend existing laws relating to internal rev- 
 enue, approved February 5, 1867 (14 Stat., 565). 
 
 A resolution to provide in certain cases for the removal of alcohol 
 from bonded warehouses free from internal tax, approved February 
 18, 1867 (14 Stat., 565). 
 
 An act to amend existing laws relating to internal revenue, and 
 for other purposes, approved March 2, 1867 (14 Stat., 471). 
 
 Reduced taxes. 
 
 An act to exempt wrapping paper made from wood or cornstalks 
 from internal tax, and for other purposes, approved March 26, 1867 
 (15 Stat., 6). 
 
 An act to prevent frauds in the collection of tax on distilled 
 spirits, approved January 11, 1868 (15 Stat., 34). 
 
 Prohibits removal of spirits from warehouse for the purpose of trans- 
 portation, redistillation, or rectification, change of package, or for any 
 other purpose, until the full tax has been paid. 
 
 An act to provide for the exemption of cotton from internal tax, 
 approved February 3, 1868 (15 Stat., 34). 
 
 Reduced taxes by repealing cotton tax. 
 
 Joint resolution to provide for a commission to examine and re- 
 port on meters for distilled spirits, approved February 3, 1868 (15 
 Stat, 246). 
 
 An act to exempt certain manufactures from internal tax, and for 
 other purposes, approved March 31, 1868 (15 Stat., 58). 
 
 Reduced taxes. 
 
 An act for the relief of certain exporters of rum, approved June 
 
 25, 1868 (15 Stat.., ^^) Digitized by Microsoft® 
 
30 INTEBSTAIi REVENUE LAWS. 
 
 Joint resolution to correct an act entitled "An act for the relief of 
 certain exporters of rum." Approved July 6, 1868 (15 Stat., 256). 
 
 An act imposing taxes on distilled spirits and tobacco, and for 
 other purposes, approved July 20, 1868 (15 Stat., 125). 
 
 Stamps first required on distillecl spirits. Revised tlie entire law 
 relative to spirits and tobacco. Reduced taxation. Tax on cigars and 
 tobacco payable by starups. Inspectors abolished except inspectors of 
 tobacco. Supervisors and detectives authorized. 
 
 An act to correct an error in the enrollment of the " Act imposing 
 taxes on distilled spirits and tobacco, and for other purposes." 
 Approved July 27, 1868 (15 Stat., 238), 
 
 An act to amend an act entitled " An act imposing taxes on distilled 
 spirits and tobacco, and for other purposes," approved July 20, 1868. 
 Approved December 22, 1868 (15 Stat., 266). 
 
 An act to allow deputy collectors of internal revenue, acting as 
 collectors, the pay of collectors, and for other purposes, approved 
 March 1, 1869 (15 Stat., 282). 
 
 An act to amend an act entitled " An act to exempt certain manu- 
 factures from internal tax, and for other purposes," approved March 
 31,1868. Approved March 3, 1869 (15 Stat., 336). 
 
 " Joint resolution to supply omissions in the enrollment of certain 
 appropriation acts, approved March third, eighteen hundred and 
 sixty-nine," approved March 29, 1869 (16 Stat., 52). 
 
 An act to amend an act entitled " An act imposing taxes on distilled 
 spirits and tobacco, and for other purposes," approved July 20, 1868. 
 Approved April 10, 1869 (16 Stat., 41). 
 
 Joint resolution in relation to female clerks in the Internal Rev- 
 enue Bureau, approved June 29, 1870 (16 Stat., 382). 
 
 An act to define the intent of an act entitled " An act to allovr 
 deputy collectors of internal revenue, acting as collectors, the pay 
 of collector[s], and for other purposes," approved March 1, 1869. 
 Approved July 1, 1870 (16 Stat., 179). 
 
 A resolution to determine the construction of an act to provide 
 internal revenue to support the Government, [to pay interest on the 
 public debt,] and for other purposes, approved June 30, 1864. Ap- 
 proved July 13, 1870 (16 Stat., 387). 
 
 An act to reduce internal taxes, and for other purposes, approved 
 July 14, 1870 (16 Stat., 256). 
 
 Repealed taxes on gross receipts, legacies and successions, passports, 
 and special taxes, except those relating to spirits, fermented liquors, and 
 tobacco, also taxes on sales. Income tax to expire December 31, 1871. 
 
 An act to amend existing laws relating to internal revenue, ap- 
 proved July 14, 1870 (16 Stat., 274). 
 
 An act to amend section 4 of the act of March 31, 1868, approved 
 July 14, 1870 (16 Stat., 277). 
 
 Joint resolution to construe the act of March 31, 1868,' approved 
 July 14, 1870 (16 Stat., 388). 
 
 An act relating to internal taxes, approved March 3, 1871 (16 
 Stat., 475). 
 
 Joint resolution to amend section 4, act of July 20, 1868, approved 
 March 3, 1871 (16 Stat., 601). 
 
 An act to repeal the paragraphs of Schedule C of the internal- 
 revenue acts imposing taxes on canned meats, fish, and certain other 
 articles, approved MaBi^t^etBW ^'nSlefi^e). 
 
INTERNAL, REVENUE LAWS. 31 
 
 An act to provide for the abatement or repayment of taxes on dis- 
 tilled spirits in bond destroyed by casualty, approved May 27, 1873 
 (17 Stat., 162). 
 
 An act to reduce duties on imports and to reduce internal taxes, 
 and for other purposes, approved June 6, 1872 (17 Stat., 238), taking 
 effect October 1, 1872. 
 
 Stamp duties on instruments, except bank cliecljs, repealed. Moieties 
 abolished. Uniform rate of 20 cents per pound on tobacco instead of 
 the two rates, 16 and 32 cents. Tax on spirits, 70 cents per gallon. 
 
 An act for the reduction of officers and expenses of the internal 
 revenue, approved December 24, 1872 (17 Stat., 401). 
 
 Assessors abolished. Reduces collection districts. 
 
 An act to remit the excise taxes upon alcohol used by universities 
 and colleges for scientific purposes, approved February 21, 1873 
 (17 Stat., 468). 
 
 An act to amend an act entitled "An act to reduce duties on imports 
 and to reduce internal taxes, and for other purposes," approved June 
 6, 1872, and for other purposes. Approved March 3, 1873. Section 
 5 of this act amends section 55 of the act of July 20, 1868, as amended 
 by the act of June 6, 1872 (17 Stat., 559). 
 
 An act to amend an act entitled "An act to prevent smuggling, 
 and for other purposes," approved July 18, 1866. Approved March 3, 
 
 1873 (17 Stat.,_580). 
 
 An act relating to the fractional parts of a barrel containing fer- 
 mented liquors, approved March 3, 1873 (17 Stat., 586). 
 
 An act to place at the disposal of the Commissioner of Internal 
 Revenue certain copies of the new compilation of internal-revenue 
 laws. Approved March 3, 1873 (17 Stat., 621). 
 
 Reprint of internal-revenue laws from August 5, 1861, to March 3, 
 1873. Submitted in response to order of the Senate of May 16, 1898, 
 for use in consideration of House bill 10100, to provide ways and means 
 to meet war expenditures. 
 
 Senate Report No. 1123 55th Cong., 2d sess. 
 
 ACTS, ETC., SINCE DECEMBER 1, 1873, THE DATE TO WHICH THE RE- 
 VISED STATTTTES OF THE UNITED STATES RELATE (See sec. 5595, R. S.), 
 AND BEFORE JANUARY 1, 1902. 
 
 [Supplement No. 1, Revised Statutes, contains legislation of 1874-1891, Forty- 
 third to Fifty-first Congresses, inclusive. Supplement No. 2 (parts 1 to 
 9) contains legislation of 1892-1901, iFifty-second to Fifty-sixth Congresses, 
 inclusive.] 
 
 Forty-third Congress. 
 
 An act to so amend the laws relative to internal revenue as to allow 
 distillery warehouses to be continued in use after changes hare oc- 
 curred m the management of the business, approved January 8, 
 
 1874 (18 Stat., 2) . [See post, p. 223.] 
 
 An act to abolish the office of Deputy Commissioner of Internal 
 Revenue, approved January 29, 1874 (18 Stat., 6). 
 Note to section 322, R. S. 
 
 An act to facilitate the exportation of distilled spirits, and amend- 
 atory of the acts in relation thereto, approved June 9, 1874 (18 
 
 Stat., 64). [Sec. 3330^. 281 J 
 
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32 INTEKNAl, KBVENUE LAWS. 
 
 An act explanatory of the act of June 30, 1864. Became law 
 June 18, 1874 (18 Stat., 80). 
 
 An act for the relief of savings institutions having no capital 
 stock and doing business solely for the benefit of depositors, ap- 
 proved June 22, 1874 (18 Stat., 194). 
 
 An act to provide for the stamping of unstamped instruments, 
 documents, or papers, approved June 23, 1874 (18 Stat., 250). 
 
 An act to amend existing customs and internal-revenue laws, and 
 for other purposes, approved February 8, 1875 (18 Stat., 309). 
 
 An act to correct errors and to supply omissions in the Revised 
 Statutes of the United States, approved February 18, 1875. (18 Stat., 
 316). 
 
 The changes made by this act were incorporated into the second edition. 
 Revised Statutes, in their proper place. 
 
 An act to further protect the sinking fund and provide for the exi- 
 gencies of the Government, approved March 3, 1875 (18 Stat., 339). 
 
 Increased tax on spirits to 90 cents per gallon and tobacco to 24 cents 
 per pound ; cigars to $6 per thousand. 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the year ending June 30, 
 
 1876, and for other purposes, approved March 3, 1875 (18 Stat., 352). 
 Section 12 of "An act making appropriations to supply deficiencies 
 
 in the appropriations for fiscal year ending June thirtieth, eighteen 
 hundred and seventy-five, and prior vears, and for other purposes," 
 approved March 3, 1875 (18 Stat., 419). 
 
 An act to amend section numbered 3342 of the Revised Statutes 
 of the United States, in relation to affixing stamps on .brewers' casks, 
 approved March 3, 1875 (18 Stat., 484). 
 
 An act to authorize the Secretarjr of the Treasury to adjust and 
 remit certain taxes and penalties claimed to be due from mining and 
 other corporations, and for other purposes, appi'oved March 3, 1875 
 (18 Stat., 507). 
 
 Forty-fourth Congress. 
 
 An act to extend the time for stamping unstamped instruments, ap- 
 proved February 25, 1876 (19 Stat., 5). 
 
 Time extended to January 1, 1877. 
 
 Joint resolution concerning special-tax stamps, approved May 8, 
 1876 (19 Stat., 213). [See post, p. 154.] 
 
 An act to define the tax on fermented or malt liquors, approved 
 May 13, 1876 (19 Stat., 53). [See post, p. 307.] 
 
 An act relative to the redemption of unused stamps, approved July 
 12,1876 (19 Stat., 88). _ 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the year ending June 30, 
 
 1877, and for other purposes, approved August 15, 1876 (19 Stat., 
 152). 
 
 Supervisors abolished. Reduced number of collection districts. 
 
 An act to perfect the revision of the statutes of the United States, 
 and of the statutes relating to the District of Columbia, approved 
 February 27, 1877 (19 Stat., 240). 
 
 Changes made .bv. this, act .were incorporated in the second edition 
 
 Revised sta.tutMigitized by Microsofm 
 
IITTEKNAL REVENUE LAWS. 33 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the year ending June 30, 
 1878, and for other purposes, approved March 3, 1877 (19 Stat., 303). 
 Eeduced number of collection districts. 
 
 An act relating to the production of fruit brandy and to punish 
 frauds connected with the same, approved March 3, 1877 (19 Stat., 
 393). 
 
 Forty--fifth Congress. 
 
 Joint resolution declaring that a reduction of the tax on distilled 
 spirits is inexpedient, approved February 18, 1878 (20 Stat., 248). 
 
 Joint resolution to prescribe the time for the payment of the tax 
 on distilled spirits, and for other purposes, approved March 28, 1878 
 (20 Stat., 249). 
 
 Repealed by the act of May 28, 1880. 
 
 An act to extend the provisions of section 3297 of the Kevised Stat- 
 utes to other institutions of learning, approved May 3, 1878 (20 
 Stat., 48) . [See post, p. 257.]_ 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal year ending June 
 30, 1879, and for other purposes, approved June 19, 1878 (20 Stat., 
 187). [See post, p. 89.] 
 
 An act to amend section 5497 of the Revised Statutes relating to 
 embezzlement bv officers of the United States, approved February 3, 
 1879 (20 Stat., 280). [Sec. 5497, Sec. 96, Criminal Code, Appendix.] 
 
 An act to amend the laws relating to internal revenue, approved 
 March 1, 1879 (20 Stat., 327). 
 
 Reduced tax on tobacco and many important cbang-es made. 
 
 Forty-sixth Congress. 
 
 An act relating to vinegar factories established and operated prior to 
 March 1, 1879, approved June 14, 1879 (21 Stat., 20). [Sec. 3282.] 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal year ending June 
 30, 1880, and forotherpurposes,approved June 21, 1879 (21 Stat., 23). 
 
 Salary of storekeepers limited. 
 
 An act providing for the binding of the Internal-Revenue Laws 
 and Manual, approved June 27, 1879 (21 Stat., 35). 
 
 An act authorizing an allowance for loss by leakage or casualty of 
 spirits withdrawn from distillery warehouses for exportation, ap- 
 proved December 20, 1879 (21 Stat., 59). 
 
 An act to amend the laws in relation to internal revenue, approved 
 May 28, 1880 (21 Stat., 145). 
 
 " Carlisle bill." Repealed provision charging 10 cents for stamps other 
 than tax-paid or export. 
 
 An act to amend sections 3385 and 3357 of the Revised Statutes of 
 the United States, approved June 9, 1880 (21 Stat., 167). 
 
 An act to amend the sixth subdivision of section 3244 of the Revised 
 Statutes of the United States, approved June 16, 1880 (21 Stat., 291). 
 
 i40i84°-20 3 Digitized by Microsoft® 
 
34 XSrTEBIf.AL 3REVEXTTE LAWS. 
 
 Forty-seventh C-ongress. 
 
 iui act to repeal so much of .section 3385 of tlie Heyised Statutes as 
 imposes an export tax on tobacco, approred August 8, 1882 (22 Stat., 
 
 An act to amend section .5362 oi the Sevised Statutes xelating to 
 the tax on perique tobacco, approved January 9, 1883 (22 Stat., 4^1). 
 
 An act relating to exportation of tobacco, snuff, and cigars, in 
 bond, free of tax to adjacent foreign territory, approved Januarj' 13, 
 1883 (22 Stat., 402). 
 
 An act to reduce uitemal-i'evjeaiue taxation, and for other purposes, 
 approved March 3, 1883 (22 Stat., 488). 
 
 Reducecl tax on tobacco to 8 cents per pannd and repealed stamp tasea 
 on bant checks, matches, ijei'tumery, Tnedicinal preparations, and other ar- 
 ticles imposed by Schedule A following section 3437, Revised Statutes. 
 
 Fo7'ty -eighth Congress. 
 
 An act to limit the time within which prosecutions may be insti- 
 tuted against persons charged with violating internal-revenue laws, 
 approved July 5, 1884 (23 Stat., 122). 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal year endiug June 
 30, 1885, and for other purposes, approved July 7, 1884 (23 Stat., 
 172). 
 
 Similar act for -fiscal jetir ending June 30, 1886, approved March 
 
 3, 1885 (23 StaL, 404). 
 
 Forty-rmvth Congress. 
 
 An act to amend section 3336 of the Revised Statutes of the United 
 States, approved April 29, 1886 (24 Stat., 15). 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal year ending June 
 30, 1887, and for other purposes, approved July 31, 1886 (24 Stat., 
 187). 
 
 An act defining butter, also imposing a tax upon and regulating 
 the manufacture, sale, imjDortation, and exportation of oleomar- 
 garine, approved August 2, 1886 (24 Stat., 209). 
 
 An act to provide for the inspection of tobacco, cigars, and snuff, 
 and to repeal section 3151 of the Eevised Statutes, approved August 
 
 4, 1886 (24 Stat., 218). 
 
 Fiftieth Congress. 
 
 An act to prevent tlie manufacture ot sale of adulterated food or 
 drugs in the District of Columbia, approved October 12, 1888 (25 
 Stat., 549). 
 
 Practically repealed by the " Act relating to the adulteration of foods 
 and drugs in the District of Columbia," approived February 17 1898 (30 
 Stat., 246). 
 
 An act to provide for warehousing fruit brandy, appro^'ed Oc- 
 tober 18, 1888 (25 Stat., 560). 
 
 An act making appropriations for sundry ci-vil expenses of the 
 Government for the fiscal year ending June 30, 1890, and for atkasr 
 purposes, approved March 2, 1889 (25 Stat., 939). 
 Digitized by Microsoft® 
 
IKTEKNAL KE\'EXUE LAWS. 35 
 
 Fifty-first Congress. 
 
 An act to provide for certain of the most urgent deficiencies in the 
 appropriations for the service of the Government for the fiscal year 
 ending June 30, 1890, and for other purposes, approved xlpril 4, 
 1890 (26 Stat., 34). 
 
 An act to amend section 3354, Revised Statutes, approved June 
 18, 1890 (26 Stat, 161). 
 
 Removal of beer for bottling by a pipe line or conduit. 
 
 An act to provide for the exportation of fermented liquor in bond 
 without pavment of internal-revenue tax. approved June 18, 1890 
 (26 Stat., 162). 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal year ending June 
 30, 1891, approved July 11, 1890 (26 Stat., 228). 
 
 An act making appropriations to supply deficiencies in the appro- 
 priations for the fiscal year ending June 30, 1890, and for prior years, 
 and for other purposes, approved September 30, 1890 (26 Stat., 504). 
 
 An act to reduce the revenue and equalize the duty on imports, and 
 for other purposes, approved October 1, 1890 (26 Stat., 567). 
 
 " McKinley bill." Imposed tax on opium, authorized bounty on sugar, 
 reduced tax on tobacco to 6 cents per pound, special-tax year to commence 
 July 1. 
 
 An act to authorize the payment of dra'n-back or rebate in certain 
 cases, approved December 18, 1890 (26 Stat., 689). 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal year ending June 
 30, 1892, approved March 3, 1891 (26 Stat., 862). 
 
 An act making appropriations for the Department of Agriculture 
 for the fiscal year ending June 30. 1892, approved March 3, 1891 (26 
 Stat., 1050) . 
 
 Removal of distilled spirits free of tax for making sugar from sorghum. 
 
 Fifty-second Congress. 
 
 An act to prohibit the coming of Chinese persons into the United 
 States, approved May 5, 1892 (27 Stat., 25). 
 
 The " Geary bill.'" Certificates of residence tf> be obtained from col- 
 lector of Internal revenue. This act was amended by the act, approved 
 November 3, 1893, known as the " McCreary bill" (28 Stat., 7). This 
 matter is now under the Commissioner General of Immigration. (Sec. 
 7, act of Feb. 14, 1903, 32 Stat., 828). 
 
 An act making approi^riations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal year ending June 
 30, 1893, and for other purposes, approved July 16, 1892 (27 Stat., 
 183). 
 
 An act making appropriations for sundry civil expenses of the 
 Government for the fiscal vear ending June 30, 1894, and for other 
 purposes, approved March 3, 1893 (27 Stat., 572). _ 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal year ending June 
 30, 1894, and for other purposes, approved March 3, 1893 (27 Stat., 
 
 Digitized by Microsoft® 
 
36 INTERNAL, REVENUE LAWS. 
 
 Fifty-third Congress. 
 
 An act making appropriations for the legislative, executive, an3 
 judicial expenses of the Government for the fiscal year ending June 
 30, 1895, and for other purposes, approved July 31, 1894 (28 Stat., 
 162). 
 
 Contains the " Dockerj' bill." 
 
 An act to provide for the collection of internal revenue, and for 
 other purposes, approved August 27, 1894 (28 Stat., 508). 
 
 An act to reduce taxation, to provide revenue for the support of the 
 Gdvernment, and for other purposes, became a law without the Presi- 
 dent's approval, in effect August 28, 1894 (28 Stat., 509). 
 
 The " Wilson bill " imposed an income tax, since declared unconstitu- 
 tional. Tax, 2 per cent upon incomes fiver $4,000. Law declared unconsti- 
 tutional May 20, 1895 (Pollock v. The Farmers' Loan & Trust Company, 
 and Hyde v. The Continental Trust Co., of N. Y. ), on the ground that 
 the tax was a direct tax (158 U. S., 601). 
 
 The court had previously held the law was unconstitutional as far as it 
 sought to tax rents and income from real estate, and income from State, 
 county, and municipal bonds (157 U. S.-, 429). Keimposed tax on playing 
 cards. Repealed bounty on sugar. 
 
 Became a law August 27 according to Supp. R. S., vol. 2, p. 334. See 
 United States r. Burr, 159 U. S., 78. 
 
 An act making appropriations for sundry civil expenses of the 
 Government for the fiscal year ending June 30, 1896, and for other 
 purposes, approved March 2, 1895 (28 Stat., 910). 
 
 Bounty on sugar — payment on production prior to August 28, 1894. 
 
 Fifty -fourth Congress. 
 
 An act to repeal section Gl of an act to reduce taxation, to provide 
 revenue for the Government, and for other purposes, which became 
 a law August 28, 1894, approved June 3, 1896 (29 Stat., 195). 
 
 Repeals provision exempting alcohol used in the arts from tax. 
 
 An act to amend section 3255 of tlie Revised Statutes of the 
 United. States, concerning the distilling of brandy from fruits, ap- 
 proved June 3, 1896 (29 Stat., 195). _ 
 
 An act defining cheese, and also imposing a tax upon and regu- 
 lating the manufacture, sale, importation, and exportation of '" filled 
 cheese," approved June 6, 1896 (29 Stat., 253). 
 
 An act to allow the bottling of distilled spirits in bond, approved 
 March 3, 1897 (29 Stat., 626). 
 
 An act to amend section 40 of " An act to reduce the revenue and 
 equalize duties on imports, and for other purposes," approved October 
 1, 1890, so as to authorize the sale of forfeited domestic smoking 
 opium to the highest bidder, approved March 3, 1897 (29 Stat., 695). 
 
 Fifty-fifth Congress. 
 
 An act making appropriations for sitndry civil expenses of the 
 Government for the fiscal year ending June SO, 1898, and for other 
 purposes, approved June 4, 1897 (30 Stat., 11). 
 
 Bounty on sugaiS/glrf^edifoj?fMKlm»eOi5f€blainis, etc. 
 
INTERNAL REVENUE LAWS. 37 
 
 An act to provide revenue for the Government and to encourage 
 the industries of the United States, approved July 24, 1897 (30 Stat., 
 151). 
 
 The " Dingley bill." Amended sections 3341 and 3394, Kevised Statutes. 
 
 An act to provide ways and means to meet war expenditures, and 
 for other purposes, approved June 13, 1898 (30 Stat., 448). 
 
 War-revenue act. Additional special taxes imposed ; increased tax on 
 fermented liquors, tobacco, and cigars ; imposed legacy taxes, tax on 
 mixed flour, stamp taxes on instruments, etc. 
 
 An act making appropriations to supply deficiencies in the appro- 
 priations for the fiscal year ending June 30, 1898, and for prior 
 years, and for other purposes, approved July 7, 1898 (30 Stat., 652). 
 
 Relative to payment of gangers of fruit brandy — additional temporary 
 force in Internal-Revenue Service. 
 
 An act to amend section 3287 of the Revised Statutes of the United 
 States, concerning the drawing off, gauging, marking, and removal 
 of spirits, approved February 21, 1899 (30 Stat., 843). 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal year ending June 
 30, 1900, and for other years, approved February 24, 1899 (30 Stat., 
 864). 
 
 Term of temporary service of additional clerks extended one year. 
 
 (Public Resolution Xo. 22.) — Joint resolution to amend sec- 
 tion 25 of the act passed June 13, 1898, entitled "An act to provide 
 ways and means to meet war expenditures, and for other purposes," 
 approved February 28, 1899 (30 Stat., 1390). 
 
 Bonds secured by mortgages, but one stamp required, etc. 
 
 An act to amend the internal-revenue, laws relating to distilled 
 spirits, and for other purposes, approved March 3, 1899 (30 Stat., 
 13-49). 
 
 Allowance ou loss in warehouse. 
 
 An act making appropriations for sundry civil expenses of the 
 Government for the fiscal year ending June 30, 1900, and" for other 
 years, approved March 3, 1899 (30 Stat., 1091). 
 
 Fifty-sixth Congress. 
 
 An act making appropriations for the legislative, executive and 
 judicial expenses of the Government for the fiscal year ending June 
 30, 1901, and for other purposes, approved April 17, 1900 (31 
 Stat., 86). 
 
 An act to provide a government for the Territory of Hawaii, 
 approved April 30, 1900 (31 Stat., 141). Takes effect 45 days from 
 and after the date of approval — that is, on June 14, 1900. 
 
 An act authorizing the Commissioner of Internal Revenue to re- 
 deem or make allowance for internal-revenue stamps, approved May 
 12, 1900 (31 Stat., 177). 
 
 An act making appropriations for sundry civil expenses of the 
 Government for the fiscal year ending June 30, 1901, and for other 
 purposes, approved ^^^fg^f^l^cPSy'McP^ikiP^^ ' 
 
38 mrTBRNAL, REVENUE LAWS. 
 
 An act to amend section 3255 of the Revised Statutes of the 
 United States concerning the distilling of brandy from fruits, ap- 
 proved February 4, 1901 (31 Stat., 759). 
 
 An act to amend an act entitled "An act to provide ways and 
 means to meet war expenditures, and for other purposes," approved 
 June 13, 1898, and to reduce taxation thereunder, approved March 2, 
 1901 (31 Stat., 938). 
 
 Revenue reduction act Bepealed certain war revenue taxes after 
 July 1, 1901. 
 
 ACTS SINCE SUPPLEMENT REVISED STATUTES, VOL 2, PART 9, (JAN. 1, 
 
 1908). 
 
 Fifty-seventh Congress. 
 
 Joint resolution authorizing the Commissioner of Internal Eevenue 
 to return banlt checks, drafts, certificates of deposit, and orders for 
 the payment of money, having unprinted stamp thereon, to the 
 owners thereof, and for other purposes, approved February 26, 1902 
 (32 Stat., 736). 
 
 An act temporarily to provide revenue for the Philippine Islands, 
 and for other purposes, approved March 8, 1902 (32 Stat., 54). 
 
 An act to repeal war-revenue taxation, and for other purposes, ap- 
 proved April 12, 1902; taking effect July 1, 1902 (32 Stat., 96). 
 
 An act to make oleomargarine and other imitation dairy products 
 subject to the laws of any State or Territory or the District of Colum- 
 bia into which they are transported, and to change the tax on oleo- 
 margarine, and to impose a tax, provide for the inspection, and to 
 regulate the manufacture and sale of certain dairy products, and to 
 amend an act entitled " An act defining butter, also imposing a tax 
 upon and regulating the manufacture, sale, importation, and expor- 
 tation of oleomargarine," approved August 2, 1886. Approved May 
 9, 1902; taking effect July 1, 1902 (32 Stat., 193). 
 
 New rate of tax on oleomargarine. 
 
 An act to provide for refunding taxes paid upon legacies and 
 bequests for uses of a religious, charitable, or educational character, 
 for the encouragement of art, etc., under the act of June 13, 1898, and 
 for other purposes, approved June 27, 1902 (32 Stat., 406). 
 
 An act to amend the internal-revenue laws in regard to storekeep- 
 ers and gaugers, approved June 28, 1902 (32 iStat., 492). 
 
 An act to amend the act of May 12, 1900, authorizing the Commis- 
 sioner of Internal Revenue to redeem or make allowance for internal- 
 revenue stamps, approved June 30, 1902 (32 Stat., 506). 
 
 An act to amend sections 3362 and 3394 of the Revised Statutes of 
 the United States, relating to tobacco, approved Julv 1, 1902 (32 
 Stat., 714). 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal year ending June 
 30, 1903, and for other purposes, approved April 28, 1902 (32 Stat., 
 120). 
 
 Temporary clerks transferred to the classified servi<;e. 
 
 An act making appropriations for sundry civil expenses of the Oov- 
 emment for the fiscal y©5ffiY^^M ^W^^^(t)903, and for other pur- 
 poses, approved June 28,1902 (32 Stat., 419). 
 
IlSTTERISrAl, BEVENUE LAWS. 39 
 
 An act to amend the internal-revenue laws, approved January 13, 
 
 1903 (32 Stat., 770). 
 
 Outage bill". 
 
 An act malring appropriations for tlie legislati'^'e, executive, and 
 judicial expenses of the Government for the fiscal year ending June 
 30, 1904, and for other purposes, approved February 25, 1903 (32 
 
 Stat., 877). 
 
 T\\^nty additional revenue agents provided for in lieu of those pro- 
 vided for by sections 3 and 47 of the act of June 13, 1898. 
 
 An act making appropriation to supply deficiencies for the year 
 ending June 30, 1903, and prior years, approved March 3, 1903 (32 
 Stat., 1040). 
 
 Relative to claims for rebate om packages of tobacco and snuE. 
 
 Fifty-eighth Congress, 
 
 An aet to relieve obligors on bonds given to the United States 
 upon the exportation to the Philippine Islands prior to November 20, 
 1901, of articles subject to internal-revenue tax, approved April 28, 
 
 1904 (33 Stat., 574). 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal year ending June 
 30, 1906, and for other purposes, approved February 3, 1905, (33 
 Stat., 631, 662), 
 
 Fifty-ninth Congress^ first session. 
 
 An act making appropriations to supply urgent deficiencies in the 
 appropriations for the fiscal year ending June 30, 1906, and for prior 
 years, and for other purposes, approved Febrviary 27, 1906 (34 
 Stat., 49). 
 
 Expenditures in excess of appropriations forbidden. 
 
 An act for the withdrawal from bond, tax free, of domestic alcohol 
 when rendered unfit for beverage or liquid medicinal uses by mixture 
 with suitable denaturing materials, approved June 7. 1906; taking 
 effect January 1, 1907 (34 Stat., 217). 
 
 Denatured alcohol act. 
 
 An act to amend existing laws relating to the fortification of pure 
 sweet wines, approved June 7, 1906 (34 Stat., 215). 
 
 An aet to amend the internal-revenue laws so as to provide for 
 furnishing ceitified copies of certain records, approved June 21, 1906 
 (34 Stat., 387). 
 
 An act to provide means for the sale of internal-revenue stamps in 
 the island of Porto Rico, approved June 29, 1906 (34 Stat., 620). 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal year ending Juno 
 30, 1907, and for other purposes, approved June 22, 1906 (34 Stat., 
 389). 
 
 An act making appropriations for sundry civil expenses of the 
 Government for the fiscal year ending June 30, 1907, and for other 
 purposes, approved Ji^fg,fOfe^foO«^|-oSta/^®697). 
 
40 INTERNAL REVENUE LAWS. 
 
 Fifty-ninth Congress, second session. 
 
 An act to amend an act entitled " An act for the' withdrawal from 
 bond tax free of domestic alcohol when rendered unfit for beverage 
 or liquid medicinal uses by mixture Avith suitable denaturing mate- 
 rials," approved June 7, 1906. Approved March 2, 1907 (34 Stat., 
 1250). 
 
 An act making appropriations to supply deficiencies in the appro- 
 priations for the fiscal year ending June 30, 1907, and for prior 
 years, and for other purposes, approved March 4, 1907, 11 a. m. (34 
 Stat, 1373). 
 
 Sixtieth Congress. 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal vear ending June 
 30, 1909, and for other purposes, approved May 22, 1908 (35 Stat., 
 184). 
 
 An act making appropriations for sundry civil expenses of the 
 Government for the fiscal year ending June 30, 1909, and for other 
 purposes, approved May 27, 1908 (36 Stat., 317). 
 
 An act to provide for refunding stamp taxes paid under the act 
 of June 13, 1898, upon foreign bills of exchange, etc., approved Feb- 
 ruary 1, 1909(35 Stat., 590). 
 
 An act to impose a tax upon alcoholic compounds coming from 
 Porto Eico, and for other purposes, approved February 4, 1909 
 (35 Stat., 594). . _ . _ 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses for the fiscal year ending June 30, 1910, and for 
 other purposes, approved March 4, 1909 (35 Stat., 845). 
 
 Sixty-first Congress. 
 
 An act to provide revenue, equalize duties, and encourage the 
 industries of the United States, and for other purposes, approved 
 August 5, 1909 (36 Stat., 112, sec. 38). 
 
 " Payne-Aldrlch bill." Excise tax on corporations. 
 
 An act making appropriations to supply urgent deficiencies in 
 appropriations for the fiscal year 1909, and for other purposes, ap- 
 proved August 5, 1909 (36 Stat., 118). 
 
 An act to amend section 63 of the act of August 28, 1894 (28 Stat., 
 567), approved May 13, 1910 (36 Stat, 369). 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal year ending June 
 30, 1911, and for other purposes. Approved June 17, 1910 (36 Stat., 
 468). 
 
 An act to amend paragraph 2 of section 3264, Kevised Statutes of 
 the United States, as amended by section 5 of the act of March 1, 
 1879, and section 3285, Eevised Statutes of the United States, as 
 amended by section 3 of the act of May 28, 1880, approved June 22, 
 1910 (36 Stat, 590). 
 
 An act granting cumulative annual leave of absence to store- 
 keepers, gangers, and stQrei:eeper-gaugers,with pay, approved June 
 23, 1910 (36 Stat, 592 yP'S'^zerfbyW/cfosoV?® ^ ^^ vv 
 
INTEEN"AL EEVE^'ITB LAWS. 41 
 
 An act making appropriations to supply deficiencies in appro- 
 jDriations for the fiscal year 1910, and for other purposes, approved 
 June 25, 1910 (36 Stat.,' 7U, 780). 
 
 Additional force authorized to carry into effect provisions of the cor- 
 poration tax act. 
 
 An act to amend the provisions of the act of March 3, 1885, limit- 
 ing the compensation of storekeepers, gaugers, and storekeeper- 
 gaugers in certain cases to $2 a day, and for other purposes, ap- 
 proved February 24, 1911 (36 Stat., 928). 
 
 An act to amend the internal-revenue laws relating to distilled 
 spirits, and for other purposes, approved March 2, 1911 (36 Stat., 
 1014). 
 
 An act to amend section 3287 of the Revised Statutes of the United 
 States as amended by section 6 of chapter 108 of an act approved 
 May 28, 1880, page 145, volume 21, United States Statutes at Large, 
 approved March 2, 1911 (36 Stat., 1014). Amends section 3255 Re- 
 vised Statutes. 
 
 An act to authorize the receipt of certified checks drawn on na- 
 tional and State banks for duties on imports and internal taxes, and 
 for other purposes, approved March 2, 1911 (^36 Stat., 965). 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal year ending June 
 30, 1912, and for other purposes, approved March 4, 1911 (36 Stat.. 
 1170). 
 
 Sixty-second Congress, second session. 
 
 An act to provide for a tax upon white phosphorus matclies, and 
 for other purposes, approved April 9, 1912 (37 Stat., 81). 
 
 The provision as to tax tooli effect January 1, 1915. (T. D. 1766.) 
 
 An act to authorize the Director of the Census to collect and pub- 
 lish additional statistics of tobacco, approved April 30, 1912 (37 
 Stat. 106). 
 
 An act for the relief of scientific institutions or colleges of learn- 
 ing having violated section 3297, Revised Statutes, and Act May 3, 
 1878 (20 Stat., 48), and the regulations thereunder, approved June 4, 
 1912 (37 Stat., 122). (T. D. 1778.) 
 
 An act extending the time for the repayment of certain war- 
 revenue taxes erroneously collected, approved July 27, 1912 (37 
 Stat., 240). 
 
 Time for filing claims for refund of legacy taxes extended to .January 1, 
 1914. (T. D. 1802.) 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal year ending June 
 30, 1913, and for other purposes, approved August 23, 1912 (37 Stat., 
 360). 
 
 Number of collectors reduced to 63. 
 
 An act making appropriations for sundry civil expenses of the 
 Government for the fiscal year ending June 30, 1913, and for other 
 purposes, approved August 24, 1912 (37 Stat., 417). 
 
 Digitized by Microsoft® 
 
42 rKTIERNAt, REVENUE LAWS. 
 
 Sixty -secoiid Congress, third session. 
 
 An act amending section 3392, Revised Statutes, as amended by 
 section 32 of tlie act of August 5, 1909, approved February 10, 1913 
 (37 Stat., 664). 
 
 Authorizing not to exceed 21 tax-free cigars per week for personal con- 
 sumption of eacU employee of a cigar manufacturer. 
 
 An act to extend authority to receive certified checks drawn on 
 national and State baniis and trust companies in payment for duties 
 on imports and internal taxes and all public dues, approved March 
 
 3, 1913 (37 Stat., 733). 
 
 An act to provide for refund or abatement under certain condi- 
 tions of penalty taxes imposed by section 38 of the act of August 5, 
 1909, known as the special excise corporation-tax law, approved 
 March 3, 1913 (37 Stat., 734). {T. D. 1838.) 
 
 An act to amend section 3186, Revised Statutes, approved March 
 
 4, 1913 (37 Stat., 1016). 
 
 Lien for unpaid taxes. 
 
 An act making appropriations for legislative, executive, and judi- 
 cial expenses of the Government for the fiscal year endiiag June 30, 
 1914, and for other purposes, approved March 4, 1913 (37 Stat., 
 739). 
 
 Sixty-third Congress. 
 
 An act to reduce tariff duties and to provide revenue for the Gov- 
 ernment, and for other purposes, approved October 3, 1913 (38 Stat., 
 113). 
 
 Provides an income tax. Repeals corporation excise tax, act of August 
 5, 1909. 
 
 Imposes special excise tax on corporations to March 1, 1913. 
 
 Amends denatured-alcohol act. 
 
 Contains provisions relative to manufacture of articles in bonded ware- 
 houses; relative to articles coming into the United States from the 
 Philippine Islands, and articles going from United States to Porto Rico 
 and the Philippine Islands. 
 
 An act making appropriations to supply urgent deficiencies in ap- 
 propriations for the fiscal vear 1913, and for other purposes, ap- 
 proved October 22, 1913 (38" Stat., 208). 
 
 Beputy collectors and deputy marshals, who are required to give bond, 
 may iDe appointed without regard to the civil-service act. 
 
 An act regulating the manufacture of smoking opium within the 
 United States, and for other purposes, approved Januarv 17, 1914 
 (38 Stat., 277). (T. D. 1940.) 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal year ending June 
 30, 1915, and for other purposes, approved Julv 16, 1914 (38 Stat., 
 454). 
 
 Number of collectors increased to 64 after October 1, 1914. 
 
 An act to levy and collect an income tax on railroads in Alaska 
 and for other purposes, approved July 18, 1914 (38 Stat., 517). 
 
 An act to tax the privilege of dealing on exchanges, boards of 
 trade, and similar pla^.m cimtcMts of^ie of cotton for future 
 
INTERNAL EEVESrUE LAWS. 43 
 
 delivery, and for other purposes, approved August 18, 1914 (38 
 Stat., 693), (known as the " United States cotton futures act "). 
 Superseded by the act of August 11, 1916 ; 39 Stat., 446. 
 
 An act to increase the internal revenue, and for other purposes, 
 approved October 22, 191i (38 Stat., 745). 
 
 Emergency revenue act, repealed by act of September 8, 1916 ; 39 
 Stat., T56. 
 
 An act to provide for the registration of, with collectors of internal 
 revenue, and to impose a special tax upon all persons who produce, 
 import, manufacture, compound, deal in, dispense, sell, distribute, or 
 give away opium or coca leaves, their salts, derivatives, or prepara- 
 tions, and for other purposes, approved December 17, 1914 (38 Stat., 
 785). 
 
 An act to amend section 3246 of the Revised Statutes of the United 
 States, as amended by section 6 of the act of March 1, 1879, ap- 
 proved March 3, 1915 (38 Stat., 893). 
 
 An act making appropriations for the legislative, executive, and 
 judicial expenses of the Govermnent for the fiscal year ending June 
 30, 1916, and for other purposes, approved March 4, 1915 (38 Stat., 
 997). 
 
 An act to provide for the allowance of drawback of tax on articles 
 shipped to the island of Porto Eico or to the Philippine Islands, 
 approved March 4, 1915 (38 Stat., 1189). 
 
 Joint resolution to refund under certain conditions a portion of 
 the offers in compromise for failure to make the I'eturn required 
 under the act of October 3, 1913, said offers in compromise having 
 been covered into the Treasury, and for other purposes, approved 
 March 4, 1915 (38 Stat., 1225). 
 
 Sixty-fourth Congress. 
 
 Joint resolution extending the provisions of the act entitled "An 
 act to increase the internal revenue, and for other purposes," ap- 
 proved October 22, 1914, to December 31, 1916, approved December 
 17, 1915 (39 Stat., 2). 
 
 An act mal?:ing appropriations for the legislative, executive, and 
 judicial expenses of the Government for the fiscal vear ending June 
 30, 1917, approved May 10, 1916 (39 Stat., 66). 
 
 An act to amend an act entitled " An act to amend an act entitled 
 ' An act for the withdrawal from bond tax free of domestic alcohol 
 when rendered unfit for beverage or liquid medicinal uses when 
 mixed with suitable denaturing materials,' " approved March 2, 1917. 
 Approved June 22. 1916 (39 Stat., 233). 
 
 Loss of alcobol in transit from a distillery bonded warehouse to a 
 central denaturing bonded warehouse. (T. D. 2348.) 
 
 An act to amend existing laws relating to the use of alcohol, free 
 <^ tax, by scientific institutions, or colleges of learning, approved 
 Julys, 1916 (39 Stat., 354). 
 
 An act making appropriations for the Department of Agriculture 
 for the fiscal year ending June 30, 1917, and for other purposes, 
 approved August 11, 1916 (39 Stat., 446, 476). 
 
 Reenacts the cot^^|^^^gyi^.^^^T.^^^358. ) 
 
44 
 
 INTERNAL REVENUE LAWS. 
 
 An act to repeal an act approved March 2, 1895, entitled " An act 
 to amend section 3 of an act entitled ' An act to regulate the liens 
 of judgments and decrees of the courts of the United States, approved 
 August 1, 1888.'" Approved August 23, 1916 (39 Stat., 531). 
 
 An act to amend sutjsection 11 of section 3244, Revised Statutes, 
 approved September 7, 1916 (39 Stat., 740). 
 
 Manufacturers of tobacco and wholesale dealers or their agents not 
 to be held as peddlers. 
 
 An act to increase the revenue and for other purposes, approved 
 September 8, 1916 (39 Stat., 756). 
 
 This act, effective September 9, 1916, repealed the emergency revenue 
 act of October 22, 1914, and joint resolution of December 17, 1915, ex- 
 cept sees. 3 and 4 (special taxes), which remained in force until Janu- 
 ary 1, 1917. It anfended the income-tax law by doubling the normal tax 
 and making reclassification of rates for additional tax, and modifying some 
 of the minor and administrative measures without disturbing the funda- 
 mental features of the previous law, and levied an estate tax, or tax on 
 the transfer of net estates of persons dying after September 8, 1916, 
 and imposed a munition manufacturers' tax. 
 
 Certain special taxes provided in the emergency revenue act of Oc- 
 tober 22, 1914, were reenacted. A special excise tax was imposed on 
 corporations, known as the capital stock tax. 
 
 Dealers in leaf tobacco and dealers in tobacco were relieved from 
 special taxes on and after January 1, 1917, and new rates were imposed 
 upon manufacturers of tobacco, cigars, and cigarettes. 
 
 Changes were made in the wine taxes. 
 
 An act making appropriations to supply deficiencies in appropria- 
 tions for the fiscal year ending June 30, 1916, and prior fiscal years, 
 and for other purposes, approved September 8, 1916 (39 Stat., 801). 
 
 An act to provide increased revenue to defray the expenses of the 
 increased appropriations for the Army and Navy and the extension 
 of fortifications, and for other purposes, approved March 3, 1917 
 (39 Stat., 1000). 
 
 This act provided an excess profits tax and increased the estate tax 
 50 per cent. 
 
 Sixty-fifth Congress, first session. 
 
 An act making appropriations to supply deficiencies in appropria- 
 tions for the fiscal year ending June 30, 1917, and prior fiscal j'ears, 
 and for other purposes, approved April 17, 1917 (40 Stat., 2). 
 
 An act to provide further for the national security and defense by 
 encouraging the production, conserving the supply, and controlling 
 the distribution of food products and fuel, approved August 10, 1917 
 (40 Stat., 273). 
 
 Food-control act. Sec. 15 relates to production of distilled spirits. 
 
 An act to provide revenue to defray war expenses, and for other 
 purposes, approved October 3, 1917 (40 Stat., 300). 
 
 War-revenue act. This act provided an increase in the income tax and 
 excess-profits tax and also in the estate tax. The tax on distilled spirits 
 was increased to $2.20 per gallon, and if withdrawn for beverage pur- 
 poses, to .1i3.20, and a tax was Imposed on rectified spirits. The tax on 
 wines was increased and taxes were imposed on sirups, soft drinks, car- 
 bonated beverages, etc. The tax on fermented liquors was made double 
 the rate under the previous law. 
 
 Additional taxes /^pgf^i^g^cJV/jg^fy^jyy® tobacco, and manufaeturos 
 
. INTEENAL REVENUE LAWS. 45 
 
 A war tax was imposed on facilities furnislied by public utilities, taking 
 effect November 1, 1917, viz., on amounts paid for freight and cxjiresa 
 transportation, transportation of persons, on seats, bei-ths, and staterooms 
 in parlor cars, sleeping cars, or on vessels, on transportation of oil by 
 pipe lines, and on telephone messages and telegrams for which a charge 
 of 15 cents is -made. Taxes were also imposed on life, fire, marine, and 
 casualty insurance. 
 
 Taxes were imposed on automobiles, motor cycles, piano players, graph- 
 ophones, phonographs and records, moving-picture films, jewelry (real or 
 imitation), yachts, pleasure boats, power boats, etc.. sporting goods, 
 cameras, perfumery and cosmetics, and other similar articles, proprietary 
 medicines, and chewing gum, on admissions to entertainments, also on 
 club dues. 
 
 Stamp taxes, taking effect December 1, 1917, were imposed on bonds, 
 issues of capital stock, sales or transfers of capital stock, sales of prod- 
 duce on exchange, promissory notes, conveyances and other documents, 
 parcel-post packages, passage tickets, and an additional tax on playing 
 cards. 
 
 An act making appropriations to supply urgent deficiencies in 
 appropriations for the fiscal year ending June 30, 1918, and prior 
 fiscal years, on account of war expenses, and for other purposes, 
 approved October 6, 1917 (40 Stat., 345). 
 
 Sixty-fjftK Congress, second session. 
 
 An act to amend an act approA'ed September 24, 1917, entitled "An 
 act to authorize an additional issue of bonds to meet expenditures for 
 the national security and defense, and for the purpose of assisting 
 in the pi'osecution of the war, to extend additional credit to foreign 
 Governments, and for other purposes," approved April 4, 1918 (40 
 Stat., 502). 
 
 Third Liberty loan act, section 6. United States bonds bearing interest 
 at a higher rate than 4 per cent to be accepted at par and accrued in- 
 terest in payment of estate tax. (T. D. 2705.) 
 
 An act to provide further for the national security and defense, 
 and for the purpose of assisting in the prosecution of the war, to 
 provide credits for industries and enterprises in the United States 
 necessary or contributory to the prosecution of the war, and to super- 
 vise the issuance of securities, and for other purposes, approved April 
 5, 1918 (40 Stat., 506). 
 
 Section 16. Exemption of certain bonds from taxation. 
 
 Section 301. Exemption of certain promissory notes from taxation. 
 
 An act to provide revenue, and for other purposes, approved Feb- 
 ruary 24, 1919 (40 Stat., 1057). 
 
 This act repealed Titles I, II, III, and IV of the act of September 8, 
 1916, Title III, and section 402 of the act of March 3, 1917, and Titles 
 I to X, and XII of the act of October 3, 1917, sub.iect to certain limita- 
 tions, ai.d Imposed an Income tax, a war-profits and excess-profits tax, an 
 estate tax, a tax on transportation and other facilities, on insurance, on 
 beverages, on tobacco and manufacturers thereof, on admissions and 
 dues, an excise tax, a special tax on occupations, stamp taxes and a tax 
 on employment of child labor. The act also created a board to be known 
 as the ".Advisory Tax Board," to be composed of six members, and to 
 which might be submitted questions relating to the interpretation or 
 administration of the income, war-profits, or excess-profits tax law. 
 This Board was dissolved by the Commissioner of Internal Revenue, 
 with the approval of the Secretary of the Treasury, at close of business 
 
 September 30, ^^j^fgjtj^ed by Microsoft® 
 
46 UriEEBTAIj KEVENUE LAWS. 
 
 Sixty-sixth Congress, first session. 
 
 Aa act to prohibit intoxicating beverages, and to regulate the 
 manufacture, production, use, and sale of high-proof spirits for 
 other than beA^erage purposes, and to insure an aarple supply of alco- 
 hol and promote its use in scientific research and in the development 
 of fuel, dj'e, and other lawful industries, approved October 28, 1919 
 (41 Stat., ). 
 
 PROVISIONS KELATIVE TO ACTS OF REPEAL. 
 
 Sec. 12, R. S. Whenever an act is repealed, which repealed a for- 
 mer act, such former act shall not thereby be revived, unless it shall 
 be expressly so provided. 
 
 Sec. 13, R. S. The repeal of any statute shall not have the effect to 
 release or extinguish any penalty, forfeiture, or liability incurred 
 under such statute, unless the repealing act shall so expressly pro- 
 vide, and such statute shall be treated as still remaining in force for 
 the purpose of sustaining any proper action or prosecution for the 
 enforcement of such penalty, forfeiture, or liability. 
 
 This provision (sec. 13, E. S.) has been upheld by the courts as a 
 rule of construction applicable, when not otherwise provided, as a 
 general saving clause to be read and construed as a part of all subse- 
 quent repealing statutes, in order to give effect to the will and intent 
 of Congress. (Hertz v. Woodman. 218 U. S., 205 (T. D. 1636), 
 quoting United States v. Eeisinger, 128 IT. S., 398; Great Northern 
 Ey. Co. V. United States, 208 U. S., 452). 
 
 Repeals by implication are not favored, particularly in revenue laws, and 
 will only be held to exist when the repugnance is positive, and then only 
 to the extent of the repugnance. (United States v. 100 Barrels Spirits, 
 12 Int. Rev. Rec, 153.) 
 
 Nothing is better settled than that repeals, and the same may be said 
 of annulments, by implication, are not favored by the courts, and that no 
 statute will be construed as I'epealing a prior one, unless so clearly re- 
 pugnant thereto as to admit of no other reasonable construction. (Cope 
 V. Cope, 137 U. S., 682, and cases cited. 
 
 A later statute covering the whole subject-matter of a former one 
 where the objects of the two statutes are the same operates as a repeal. 
 (United States v. Claflin, 97 U. S'., 546. See also United States v. Tynen, 
 11 Wall., 88.) 
 
 When a later statute is a complete revision of the subject to which 
 the earlier statute related and the new legislation was manifestly in- 
 tended as a substitute for the former legislation, the prior act must be 
 held to have been repealed. (United States v. Ranlett and Stone, 172 
 U. S., 183.) 
 
 Digitized by Microsoft® 
 
INTERNAL EEYENUE COLLECTION DISTRICTS IN THE 
 UNITED STATES, WITH LOCATION OF COLLECTORS' 
 OFFICES. 
 
 Alabama. — Collector's office, Birmingham. 
 
 Alaska. — (Part of Wasliiaagton District.) 
 
 A7-izona. — Collector's office, Phoenix. 
 
 Arkansas. — Collector's office, Little Rock. 
 
 California. — First district, collector's office, San Francisco; sixth 
 district, collector's office, Los Angeles. 
 
 Colorado. — Collector's office, Denver. 
 
 Connecticut. — Collector's office, Hartford. 
 
 Delaware. — Collector's office, Wilmington. 
 
 District of Colurribia. — (Part of Maryland District.) 
 
 Floi^a. — Collector's office, JacksonTille. 
 
 Georgia. — Collector's office, Atlanta. 
 
 Haiiyaii. — Collector's office, Honolulu. 
 
 Idalw. — Collector's office, Boise. 
 
 lUinois, — First district, collector's office, Chicago; eighth district, 
 collector's office, Springfield. 
 
 Indiana. — Collector's office, Indianapolis. 
 
 Iowa. — Collector's office, Duhuque. 
 
 Kansas. — Collector's office, Wichita. 
 
 Kentucky. — Collector's office, Louisville. 
 
 Louisiana. — Collector's office. New Orleans. 
 
 Maine. — Collector's office, Augusta. 
 
 Mainland. — Collector's office, Baltimore. 
 
 Massachusetts. — Collector's office, Boston. 
 
 Michigan. — First district, collector's office, Detroit ; fourth district, 
 collector's office. Grand Rapids. 
 
 Minnesota. — Collector's office, St. Paul. 
 
 Mississippi. — Collector's office, Jackson. 
 
 Missouri. — First district, collector's office, St. Louis ; sixth district, 
 collector's office, Kansas City. 
 
 Montana. — Collector's office, Helena. 
 
 Nebraska. — Collector's office, Omaha. 
 
 *Nevada. — (Part of first district of California.) 
 
 New HampsMre. — Collector's office, Portsmouth. 
 
 New^ Jersey. — First district, collector's office, Camden; fifth dis- 
 trict, collector's office, Newark. 
 
 New Mexico. — Collector's office, Albuqurque. 
 
 New York. — First district, collector's office, Brooklyn ; second dis- 
 trict, collector's office, New York; fourteenth district, collector's 
 office, Albany ; twenty-first district, collector's office, Syracuse ; twen- 
 ty-eighth district, collector's office, Buffalo. 
 
 * The district of Nevada, with, heedquarters at Reno, will be established Apr. 1, 1920, 
 or later. 
 
 47 
 
 Digitized by Microsoft® 
 
48 LIST OF COLLECTIOl?' DISTRICTS. 
 
 NoTth Carolina. — Collector's office, Raleigh. 
 
 **North and South Dakota. — Collector's office, Aberdeen, S. Dak. 
 
 Ohio. — First district, collector's office, Cincinnati; tenth district, 
 collector's office, Toledo ; eleventh district, collector's office, Columbus ; 
 eighteenth district, collector's office, Cleveland. 
 
 Oklahoma. — Collector's office, Oklahoma City. 
 
 Oregon. — Collector's office, Portland. 
 
 Pennsylvcmia. — First district, collector's office, Philadelphia; 
 twelfth district, collector's office, Scranton; twenty -third district, 
 collector's office, Pittsburgh. . 
 
 Rhode Island. — Collector's office, Providence. 
 
 South Carolina. — Collector's office, Columbia. 
 
 **South Dakota. — (Part of district of North and South Dakota.) 
 
 Tennessee. — Collector's office, Nashville. 
 
 Texas. — Collector's office, Austin. 
 
 Utah. — Collector's office. Salt Lake City. 
 
 Vermont. — Collector's office, Burlington. 
 
 Virginia. — Second district, collector's office, Eichmond; sixth dis- 
 trict, collector's office, Eoanoke. 
 
 Washington^ — Collector's office, Tacoma. 
 
 West Virginia. — Collector's office, Parkersburg. 
 
 Wisconsin. — Collector's office, Milwaukee. 
 
 Wyoming. — Collector's office, Cheyenne. 
 
 ** The district of North Dakota, with headquarters at Fargo, will be established 
 Apr. 1, 1920, or later. From the date of the establishment of the new district of North 
 Dakota, the present district of North and South Dakota will be known as the district of 
 South Dakota, with headquarters remaining at Aberdeen, S. Dak. 
 
 Digitized by Microsoft® 
 
LIST OF INTEENAL REVENUE EEGULATIONS.^ 
 
 Subject. 
 
 3, Supplement No. 1 - . 
 
 4 
 
 5 
 
 7, Supplemen t No. 1 . . 
 
 8 
 
 9 
 
 10 
 
 n 
 
 11, Supplement No. 1 . 
 
 12 
 
 13 
 
 14 
 
 18 
 
 10 
 
 17 
 
 18 
 
 19., 
 20. 
 
 20, Supplement No. 1 . 
 2! 
 
 Assessments. 
 
 Officers' accounts. 
 
 Legacies and distributive shares, act of June 13, 1898. 
 
 Legacies and distributive shares. 
 
 Exportation. (Revised and embodied in Reg. No. 29.) 
 
 Special bonded warehouses for storage of brandy made from apples, peaches, 
 
 grapes, pears, pineapples, oranges, apricots, berries, or prunes, exclusively. 
 Fermented lip Uor. 
 Distilled spirits. 
 Gauging, iharking, and stamping of distilled spirits by rectifiers under act of 
 
 Mar. 4, 1915. 
 Tobacco; snuil, and cigars. 
 Oleomargarine. 
 
 Exportation. (Revised and embodied in Reg. No. 29.) 
 Gauger's Manual. 
 Gauger's Weighing Manual. 
 
 Revenue officers, district attorneys, marshals, etc. 
 Exportation. (Revised and embodied in Reg. No. 29.) 
 Abatement and refunding of taxes. 
 
 Food. (Superseded by Agricultural Department ruling.) 
 Smoking opium, act of Jan. 17, 1914. (T. D. 2211.) 
 Sugar bounty. (Obsolete.) 
 Chinese, resident in United States. (Superseded by regulations of Department 
 
 of Commerce and Labor.) 
 Exportation. (Revised and embodied in Reg. No. 29.) 
 Establishment of general bonded warehouses for the storage of spirits made 
 
 from materials other than fruit and the transportation and exportation there- 
 of in bond. 
 Bonds, Form 351, and order, etc.,_ used in transfer to general bonded warehouses. 
 Income tax. (Declared unconstitutional and reenacted. See Regs. No. 31 and 
 
 No. 33.) 
 Filled cheese. 
 
 Bottling of distilled spirits in bond under act of Mar. 3, 1897. 
 Exportation of articles described in Schedule B, act of Oct. 22, 1914. 
 Mixed flour. (Act of June 13, 1898.) 
 
 Documentary and proprietary stamps under act of June 13, 1898. 
 Allowance for, and redemption of, internal-revenue istamps. 
 Allowance for, and redemption of, internal-revenue stamps. 
 Withdrawal of wine spirits or grape brandy. 
 Withdrawal, and use of wine spirits or grape brandy. 
 Exportation free of tax, or with benefit of drav;back, of distilled spirits, fermented 
 
 liquors, etc. 
 Denatured alcohol. 
 
 Excise tax on corporations, etc., imposed by section 38, act of Aug. o, 1909. 
 White phosphorus matches. 
 
 Income taxes. (Acts of Sept. 8, 1»16, and Oct. 3, 1917.) (T. D. 2690.) 
 Withdrawal of oleomargarine, etc., free of tax for use of the United States. 
 Production, importation, manufactm-e, compounding, sale, dispensing, or giving 
 
 away of opium or coca leaves, their salts, derivatives, or preparations. 
 Contracts of sale of cotton for future delivery made on an exchange. (T. D. 
 
 2139.) 
 Estate tax. 
 
 Capital stock tax. (Act of Sept. 8, 1916.) (T. D. 2750.) 
 Excise tax on manufacturers in the United States of certain munitions and parts 
 
 thereof. 
 Collection of tax on transfers of stock and on sales of products for future dehvery. 
 Stamp tax on issues, sales, and transfers of stock and sales of products for future 
 
 dehvery under revenue act of 1918. 
 War excess profits tax. (Act of Oct. 3, 1917.) (T. D. 2694. ) 
 Transportation of persons and property. (Act of Oct. 3, 1917.) (T. D. 2676.) 
 Tax on admissions and dues. (T. D. 2681.) 
 
 War excise taxes and war tax on nonalcoholic beverages. (T. D. 2719.) 
 Income tax and war-profits and excess-profits tax. 
 
 1 Regulations issued by the Secretary of the Treasury with reference to the internal revenue and for the 
 government cf the officers of the revenue bureau have the force and effect cf law and are as binding as if 
 incorporated in the statute law of the United States. (Stegall v. Thurman, 175 Fed., 813; T. D. 1016.) 
 But see cases cited, pp. 52, 53. , , , 
 
 Regulations made by the Commissioner pursuant to statutory authority, with the approval of the 
 Secretary of the Treasury, in respect to the assessment and collection of internal revenue, have the hrce 
 of statutes; and the acts of the Commissioner are presumed to be the acts of the Secretary. (In re Huft- 
 man, 70 Fed., 699.) 
 
 22 
 
 23 
 
 24 
 
 25. 
 
 26 
 
 27 
 
 27, Supplement No. 1 . 
 
 28, Supplement No. 1 . 
 '29 
 
 30., 
 31., 
 32., 
 33., 
 34. 
 35. 
 
 37. 
 3S. 
 
 10 
 
 40. (Revised.)., 
 
 41. 
 42. 
 43. 
 41. 
 45. 
 
 140184°— 20- 
 
 49 
 
 Digitized by Microsoft® 
 
50 
 
 LIST OF INTERNAL EEVBNUE REGULAXIONS. 
 
 No. 
 
 Subject. 
 
 46. 
 47. 
 48. 
 49, 
 50. 
 51. 
 62. 
 53, 
 
 54. 
 55. 
 
 58. 
 57. 
 58. 
 59 
 
 00 
 01 
 
 Tax on the employment of child labor. (T. D. 2823.) 
 
 Excise taxes on sales by the manufacturer. 
 
 Excise taxes on works of art and jewelry. 
 
 Collection of tax on transportation and other facilities. 
 
 Capital stock tax under the revenue act of 1918; 
 
 Excise taxes on toilet and medicinal articles. 
 
 Tax on soft drmlts ajid other beverages sold in bottles or other closed containers. 
 
 Tax on soft drinks, ice cream, and similar articles sold at soda fountains or similar 
 places of business. 
 
 Excise taxes on sales by the dealer of wearing apparel, etc. 
 
 Stamp taxes on documents (except on issue, safes, and transfers of certificates of 
 stock and saiCS of products for future delivery.) 
 
 Collection of tax on motioo-picture films. 
 
 Tax on telegraph, telei>hone, radio, and cable facilities. 
 
 Tax on the issuance of lusorance policies. 
 
 Special tax upon business and occupations, and upon use of boats. <T. D. 
 2983.) 
 
 Manufacture, sale, etc., of intoxicating liquor. CI. B. 2985.) 
 
 Production, etc., of industrial alcohol, and manuiacture, etc., of denatured alco- 
 hol. (T. D. 2986.) 
 
 Digitized by Microsoft® 
 
INTERNAL REVENUE LAWS. 
 
 OFFICE OF INTERNAL REVENUE, ORGANIZATION, 
 APPROPRIATIONS, ETC. 
 
 [The soctioQs eniimerated in this comnilatioii are from the Revised Statutes o£ the United 
 States, unless otherwise indicated.] 
 
 Sec. 
 319. 
 
 ]300. 
 
 321. 
 3671. 
 
 .322. 
 
 1301 
 
 323. 
 
 1. 
 
 349. 
 
 Commissioner of Internal Reve- 
 nue. 
 
 Act of February 24, 1919. Salary 
 of Commissioner. 
 
 Duties of Commissioner. 
 
 Estimates of expenses of collect- 
 ing internal revenue. 
 
 Estimates and statement of re- 
 ceipts and expenditures. 
 
 D^uty commissioner. 
 
 Act of October 3, 1913. Addi- 
 tional deputy. 
 
 (a). Act of February 24, 1919. 
 Deputies and assistant. 
 
 Duties of deputy commissioner. 
 
 Act of October 6, 1917. Assign- 
 ment of deputy commission- 
 ers. 
 
 Solicitor of Internal Eevenue. 
 
 Sec. 
 320. Chief clerk. 
 173-174. Duties of chief clerk. 
 
 Appropriation acts. Officers and 
 employees. Reports. Hours 
 of labor. 
 239. Accounts of receipts of internal 
 revenue, how kept. 
 3. Act April 28, 1902. Temporary 
 clerks transferred to classi- 
 fied service. 
 2.31. Rules, regulations, and forms. 
 261. Report to C<jnsress by Secretary 
 
 of moneys received. 
 196. Annual report of head of dejiart- 
 ment. 
 3. Act of July 1, 1916. Time for 
 furnishing annual reports 
 to Ptiblic Printer. 
 
 Sec. 319. There shall be in the Department of the^f'^i^J^^'^^'ffl^.^J 
 Treasury a Commissioner of Internal Revenue, who shall nue. 
 be appointed by the President, hj and with the advice and 
 consent of the Senate, and shall be entitled to a salary of 
 six thousand dollars a year. 
 
 12 Op. Atty. Gen., 443; 8 Int. Rev. Rec, 54. 
 
 Sec. 1300. [Act of Fehruary 2Jf, 1919 {^0 Stat., 1057). '\ 
 Hereafter the salary of the Commissioner shall be $10,000 ^^|Jj^ ^^^ ° * 
 a year. The difference between the amount appropriated °"""'^''°"^''- 
 imder existing law and the salary herein established shall, 
 for the period between the passage of this Act and July 
 1, 1919, be paid out of the appropriations for collecting 
 internal revenue. 
 
 Sec. 321. The Commissioner of Internal Revenue, un- j„i°"o*j,^/j.°oj^'°j"' 
 der the direction of the Secretary of the Treasury, shall tom? "Revenue." 
 have general superintendence of the assessment and col- 
 lection of aU duties and taxes now or hereafter imposed 
 by any law providing internal revenue ; and shall prepare 
 and distribute all the instructions, regulations, directions, 
 forms, blanks, stamps, and other matters pertaining to 
 the assessment and collection of internal revenue; and 
 shall provide hydrometers, and proper and sufficient ad- 
 
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52 ORGANIZATION OF OFFICE. 
 
 hesive stamps and stamps or dies for expressing and de- 
 noting the severarl stamp duties, or, in the case of per- 
 centage duties, the amount thereof; and alter and renew 
 or replace such stamps f rona time to time, as occasion may 
 require. He may also contract for or procure the print- 
 ing of requisite forms, decisions, and regulations, but the 
 printing of such forms, decisions, and regulations shall 
 be done at the Public Printing Office, unless the Public 
 Printer shall be unable to perform the work: Provided, 
 That the Commissioner of Internal Revenue may, under 
 such regulations as may be established by the Secretary 
 of the Treasury, after due public notice, receive bids and 
 make contracts for supplying stationery, blank-books, 
 and blanks to the collectors in the several collection-dis- 
 tricts ; and the said Commissioner shall estimate in detail 
 by collection-districts the expense of assessing and the 
 expense of the collection of internal revenue. 
 
 The various duties of the Commissioner are set forth in 
 t'.pprorrlate places in the chapters relating to the different 
 subjects. 
 
 See, as to stamps, sections 3238, 3312, 3328, 3341, 3369, 
 3395, 3445, 3446, and other sections. 
 
 Commissioner to make assessments. (See sec. 3182 R. S. 
 and notes, p. 112.) 
 
 It is the duty of the Commissioner to see that the laws 
 relating to collection of internal revenue taxes are faithfully 
 executed. He has the right to order seizures. (Agnew v 
 H.iymes, 141 Fed., 631; T. D. 955.) 
 
 Commissioner to make regulations to carry out the law 
 as made necessary by reason of changes in "the law (sec 
 3447, p. 590). 
 
 In the matter of regulations, section 161 of the Revised 
 Statutes provides: "The head of each executive depart- 
 ment is authorized to prescribe regulations, not inconsistent 
 with law, for the government of his department, the con- 
 duct of its officers and clerks, the distribution and per- 
 formance of its business, and the custodv, use, and preser- 
 vation of the records, papers, and property appertaining to 
 
 Distinction between "Instructions" and "regulations" 
 (Landram r. United States, 16 Ct. Cls , 74- "^7 Int Rev 
 Rec, 80.) 
 
 A regulation made in pursuance of an act of Congress has 
 the force of law. (United States r. Eliason, 16 Pet 291- 
 Ex parte Reed. 100 U. S., 13; United States v. Ba'rrow.s 
 et al., 10 Int. Rev. Rec, 86 ; Harvey r. United States, 3 Ct 
 Cls., 38; Stotesbury v. United States, 23 Ct Cls ''9'>- ">" 
 Op. Atty. Gen., 570.) ' 
 
 Scope and effect of regulations of the department (In re 
 Kollock, 165 U. S., 526; 43 Int. Rev Rec, 170- United 
 States v. Symonds, 120 U. S., 46 ; Wilkius v. United States, 
 U. S. Circuit Court of Appeals, 1899, 96 Fed, 837- T D 
 21623 ; Sprinkle v. United States, 141 Fed., 811 ; T. D 958 • 
 Stegall v. Thurman, 175 Fed., 813; T. D. 1616.) 
 
 Right to make regulations depends on what Secretary 
 considers necessary. (27 Op. Atty. Gen., 88.) 
 
 Secretary of Treasury can not make regulations which 
 will defeat the law. (Campbell r. United States 107 U S 
 410.) ■ ■' 
 
 Regulations made by the Commissioner pursuant to the 
 ffatutOjg,/g,-^yj^jjjty/\^;t{,S^j^@pproval of the Secretarv of 
 the Treasury, in fespect to the assessment and collectioia of 
 
ORGANIZATION OF OFFICE. 53 
 
 internal revenue, have tlie force of statutes ; and the acts 
 of the Coniiuissioner are presumed to be the acts of the Sec- 
 retary. (In re Huttman, 70 Fed., 699.) 
 
 In United States v. Eaton, 144 U. S., 677, it was held that 
 " a sufficient statutory authority should exist for declaring 
 any act of omission a criminal offense." Regulations pre- 
 scribed by law may have in a proper sense the force of law, 
 but when the statute does not distinctly make the neglect 
 to do the thing required a criminal oltense a regulation can 
 not have that effect. 
 
 While department regulations duly promulgated have the 
 force of law, in a limited sense, they can not enlarge or 
 restrict the liability of an officer on his bond. (Meads v. 
 United States, 81 Fed., 684.) 
 
 Regulations can not change the positive provisions of law. 
 (United States v. Two Hundred Barrels of \Yhisky, 95 U. S., 
 571 ; 24 Int. Rev. Rec, 3 ; Morrill v. Jones, 106 U. S., 467 ; 
 United States v. Three Barrels; 77 Fed., 963.) 
 
 An order from the proper executive department is sent 
 with approval of the head of the department unless the 
 contrary appears. (Medkirk v. United States, 45 Ct. Cls., 
 395.) 
 
 Binding force of departmental construction of statute. 
 (Schell's Executors v. Fauche, 138 U. S. 562, 572. See 
 Cornell v. Coyne, 192 U. S., 418.) 
 
 Authority to make regulations does not confer legislative 
 power. (United States v. 11,150 Pounds of Butter, 188 
 Fed., 157; 195 Fed., 657.) 
 
 That Congress can not delegate legislative power to any 
 executive official is elementary. (Coopersville Cooperative 
 Creamery Co. r. Lemon, 163 Fed., 145, T. D. 1371, citing 
 Field t'. Clark, 143 U. S., 649.) 
 
 Federal courts .will take judicial notice of regulations pre- 
 scribed in pursuance of law. (Caha v. United States, 152 U. 
 S., 211 ; Wilkins v. United States, 96 Fed., 837 ; T. D. 21623, 
 1889 ; Dominici v. United States, 72 Fed., 46. ) 
 
 While a regulation may have the force of law, printed 
 headings on a form, additional to the expressed terms of the 
 regulation, do not have the force of law. (United States r. 
 Lamson, 162 Fed., 168.) 
 
 A regulation promulgated by the Commissioner of In- 
 ternal Revenue, under the direction of the Secretai-y of the 
 Treasury, prohibiting collectors from producing the records 
 of their offices or furnishing copies thereof for the use of 
 third persons or for use as evidence in behalf of litigants 
 in any court, is a valid and binding regulation. (In re 
 Comingore, Collector, 1889, 96 Fed., 5.52 ; T. D. 21584 ; Boske 
 V. Comingore, 177 U. S., 4.59; T. D. 104.) 
 
 By section 161, Revised Statutes, the head of each de- 
 partment is authorized to prescribe regulations as to the 
 custody, use, and preservation of the records and papers 
 appertaining to it and may decline to furnish copies. (25 
 Op. Atty. Gen., 326; see sec. 882 and notes, p. 644, Appendix.) 
 
 Duties of executive departments are ministerial rather 
 than judicial. (10 Op. Atty. Gen., 62.) 
 
 Act authorizing the President to consolidate bureaus and 
 offices in the interest of economy and efficiency, approved 
 May 20, 1918. (Executive Order No. 2877, May 31, 1918.) 
 
 Typewriters, adding machines, and other mechanical 
 devices not to be installed without written permission of 
 Commissioner. (T. D. 1693.) 
 
 Sec. 3671. The Commissioner of Internal Eevenue shall Estimates of 
 estimate in detail, by collection-districts, the expense of feSiUr'' interaai 
 assessing and the expense of the collection of internal 
 
 Digitized by Microsoft® 
 
 revenue. 
 
EEtimatcs. 
 
 54 OEGAH'IZATIOIJ' OF OFFICE. 
 
 revenue, and submit the same to Congress at the com- 
 mencement of each regular session. 
 
 Sec. 6. \_Estract from the legislative, executvve, <md ju- 
 dicial appropriaticn act for the fiscal yea/r ending June 
 30, 1902, approved March 3, 1901 {31 Stat., 982, 1009).'] 
 Hereafter it shall be the duty of the heads of the several 
 Executive Departments, and of other officers authorized 
 or required to make estimates, to furnish to the Secretary 
 of the Treasury, on or before the fifteenth day of Octo- 
 ber of each year, their annual estimates for the public 
 service, to be included in the Book of Estimates pre- 
 pared by law under his direction, * * * 
 
 [Extract from the legislative, executive, and judicial appropria- 
 tion act lor the fiscal j'ear ending June 30, 1907, approved 
 June 22, 1906 (34 Stat., 44B).] 
 
 Sec. 4. 
 
 Hereafter the lieads of the several Executive Depart- 
 ments and all other oiHcers authorized or required to make 
 estimates for the public service shall include in their annual 
 estimates furnished the Secretary of the Treasury for 
 inclusion in the Boob of Estimates all estimates of ap- 
 propriations required for the sers'ice of the fiscal year for 
 which they are prepared and submitted, and special or ad- 
 ditional estimates for that fiscal year shall only be sub- 
 mitted to carry out laws subseqnently enacted, or when 
 deemed imperatively necessary for the public service by the 
 Department in which they shall originate, in which ' case 
 such special or additional estimate shall be accompanied 
 by a full statement of its imperative necessity, and reasons 
 for its omission in the annual estimates. 
 
 [Extract from the legislative, executive and judicial appropria- 
 tion act of Feb. 26, WOT (34 Stat., 949).] 
 
 The Secretary of the Treasury shall each year prepare 
 and submit in his annual report to Congress estimates of 
 the public revenue and the public expenditures for the 
 fiscal year current, and also for the fiscal year next en- 
 suing at the time said report is submitted, together with 
 a statement of the receipts and expenditures of the Gov- 
 ernment for the preceding completed fiscal year. 
 
 Statement to be submitted in Annual Book of Estimates 
 Act of August 1. 1914. (38 Stat, 6S0.) 
 
 Submission of estimates of appropriations for the Annual 
 Book of Estimates. (Dept. Cir, No. 62, June 15, 1918.) 
 
 [Extract from the sundry -civil appropriation act for 1910 
 Act of March 4, 1809. (35 Stat, 1027).] 
 
 Sec. 7. Immediately upon the receipt of the regular an- 
 nual estimates of appropriations needed for . the various 
 branches of the Government it shall be the duty of the 
 Secretary of the Treasury to estimate as nearly as may be 
 the revenues of the Government for the ensuing fiscal year, 
 and if the estimate for appropriations, including the esti- 
 mated amount necessai-y to meet all continuing and per- 
 manent appropriations, shall exceed the estimated revenues 
 the Secretary of the Treasury shall transmit the estimates 
 to Congress as heretofore required by law and at once 
 transmit a detailed statement of all of s'aid estimates to the 
 President, to the end that he may, in giving Congress in- 
 formation of the state of the Union and in recommending 
 to their consideration such measures as he may judge 
 necessary, advise the Congress how in his judgment the 
 estimated appropriations could with least injury to the 
 publiD^fraee/liS]^rMiJfe*Sff®B to bring the appropriations 
 
ORGANIZATION OF OFFICE. 55 
 
 within the estimated revenues, or, if sudi i-educlion be not 
 
 In Ills judgment practicable without undue injury l<i the 
 
 public service, that he may recommend to Congress such 
 
 loans or new taxes as may be necessary to cuver the de- ^ 
 
 flciency. 
 
 Department Circular No. 62, July 14, 191T, relating to the 
 submission of estimates of appropriations for the Annual 
 Book of Estimates and to schedules of expenditures to 
 accompany the same. 
 
 _ Sec. 322. There shall be in the office of the Commis- ,^SsZll oFZi 
 sioner of Internal Eevenue a Deputy Commissioner of t«™ai Revenue. 
 Internal Eevenue, who shall be appointed by the Presi- 
 dent, by and with the advice and consent of the Senate, 
 and shall be entitled to a salary of three thousand five 
 hundred dollars a year. 
 
 By act approved January 29, 1874 (18 Stat., 6), it is pro- 
 vided that this " Office of Deputy Commissioner of Internal 
 llevenue * * * be, and the same is hereby, abolished ; 
 and that the Secretary of the Treasury may, upon the 
 recommendation of the Commissioner of Internal Revenue, 
 designate one of the tvs'o remaining deputy commissioners 
 as first deputy commissioner, who shall perform the duties 
 and be paid only the salary prescribed for the office of 
 deputy commissioner hereby abolished." 
 
 The legislative, executive, and judicial appropriation act 
 of April 17, 1900 (31 Stat., 103), made appropriation for a 
 deputy commissioner at $4,000 and provided for an addi- 
 tional deputy at $3,600. 
 
 See section 235, Revised Statutes, and Supplement to 
 Revised Statutes, volume 1, page 8. 
 
 (13 Op. Atty. Gen., 512; 15 Op. Atty. Gen., G.) 
 
 Sec. II [Par. N, Act of October 3, 1913 {38 Stat., lU, _^^ Additional dep- 
 180) . Extract.'] In the office of the Commissioner of In- 
 ternal Eevenue at Washington, District of Columbia, 
 there shall be appointed by the Commissioner of Internal 
 Eevenue, with the approval of the Secretary of the Treas- 
 ury, one additional deputy commissioner, at a salary of 
 $4,000 per annum; * * *. 
 
 Sec. 1301 (a). [Act of February U, 1919 (Jfi Stat., ^^^^l^"^. 
 1057).] Hereafter there may be employed in the Bureau ant to commis- 
 of Internal Eeveune, in lieu of the deputy commissioners '''°"'^'' 
 whose salaries are now fixed by law, five deputy commis- 
 sioners and an assistant to the Commissioner, who shall 
 each receive a salary of $5,000 a year, paj-able monthly. 
 The assistant to the Commissioner may be authorized by 
 the Commissioner to perform any duties which the deputy 
 commissioners may perform under existing law. 
 
 Sec. 323. The Deputy Commissioner of Internal Re^e- cutic, pt oep- 
 nue shall be charged with such duties in the office of the "ioner of "inter- 
 Commissioner of Internal Revenue as may be prescribed ™' Kevenuc. 
 by the Secretary of the Treasury, or by law, and shall act 
 as Commissioner of Internal Eevenue in case of the ab- 
 sence of that officer. 
 
 Vacancies occurring by death, resignation, absence, or 
 sickness of chief of a bureau, how temporarily filled. (Sees. 
 178, 179, ISO, R. S.) 
 
 Digitized by Microsoft® 
 
56 OKGANIZATION OF OFFICE. 
 
 Sec. 1. [Act of October 6, 1917 {W Stat., 3^8) . Vrgent 
 dcfcicnr-y approjyriation CBpt.l 
 
 *'* * * * * * 
 
 AEfignment of Xhe Commissioner of Internal Eevenue is authorized 
 '^mik ™"""''' to assign to deputy commissioners such duties as he may 
 prescribe, and the Secretary of the Treasury may desig- 
 nate any one of them to act as Commissioner of Internal 
 Eevenue during the Commissioner's absence. 
 Solicitor of In- Sec. 349. There shall be in the Department of Justice 
 tergal Revenue. * h= * ^ Solicitor of Internal Eevcnue, * * * who 
 shall be appointed by the President, by and with the 
 advice and consent of the Senate, and shall be entitled to 
 the following salaries: * * * Solicitor of Internal 
 Eevenue to five thousand dollars a year, " " ''. 
 
 A Solicitor of Internal Revenue was aelded to the Internal 
 lieveniie Office corps by the act of July 13, 1866 (14 Stat., 
 170), but by the act of June 22, 1870 (16 Stat., 162), or- 
 ganizing the Department of Justice, the Solicitor was form- 
 ally transferred to that department. He is the law offlcer 
 and law adviser of the Commissioner. The only duties of 
 which mention is made by law are in connection with com- 
 promi.se eases (Sec. 3229, p. 149). 
 Chief clerk. gj.^ 320. The Commissioncr of Internal Eevenue is 
 
 authorized to designate one of the heads of division as 
 chief clerk of the Bureau without additional compensa- 
 tion. 
 Chief eieik to gEc. 1T3. Eacli cliicf clerk in the several Departments 
 cTother^ clerks, and Burcaus, and other offices connected Avith the Depart- 
 ments, shall supervise, under the direction of his immedi- 
 ate superior, the duties of the other clerks therein, and 
 see that they are faithfully performed. 
 (3iBtribute'dutie*s° ^'^'^- -'-^'^- ^ach chief clcrk shall take care, from time to 
 time, that the duties of the other clerks are distributed 
 with equality and uniformity, according to the nature of 
 the case. He shall revise such distribution from time to 
 time for the purpose of correcting any tendency to undue 
 accumulation or reduction of duties, whether arising from 
 individual negligence or incapacity, or from increase or 
 diminution of particular kinds of business. And he shall 
 report monthly to his superior officer any existing defect 
 that he may be aAvare of in the arrangement or dispatch 
 of business. 
 
 Section 17.5 directs what action the chief of a bureau or 
 other superior officer shall take upon receiving the monthly 
 report of his chief clerk, rendered pursuant tn section 174. 
 Section 166, Revised Statutes, as amended bv act of May 
 28, 1896 (29 Stat., 140), provides in regard to' distribution 
 of clerks and details. 
 
 Chief clerk authorized to administer oaths to accounts 
 for travel or other expenses against the United States. 
 (Sundry civil appropriation act, sec. 8; act of Aug. 24, 
 1912; 37 Stat. 417. See p. 9.5.) 
 
 Appropriation Acts. 
 
 Monthly re- STr.c. 7. [Act of .V circJi If), 1898 (30 Stot., 316) . Leqlfi- 
 
 tion%f°buBre'J; hstirc, e:eemffk^<^>b^M'^'^^W'P>'opnatio>} art for 1899.] 
 
 :s * * Hereafter it shall be the duty of the liead of 
 
OEGAJSriZATION OF OFFICE. 
 
 57- 
 
 each Executive Department to require monthly reports to 
 be made to him as to the condition of the public business 
 in the several bureaus or offices of his Department at 
 Washington ; and in each case where such reports disclose 
 that the public business is in arrears, the head of the 
 Department in which such arrears exist shall require, as 
 proAaded herein, an extension of the hours of service to 
 such clerks or employees as may be necessary to bring up 
 such arrears of public business. 
 
 Hereafter it shall be the duty of the head of each Quarterly re- 
 Executive Department, or other Government establish- ^°^'^' 
 ment at the seat of government, not under an Executive 
 Department, to make at the exj^iration of each quarter 
 of the fiscal year a written report to the President as to 
 the condition of the public business in his Executive 
 Department or Government establishment, and whether 
 any branch thereof is in arrears. 
 
 The Secretary of the Treasury to report to Congress of- 
 ficers (lelluquent in rendering accounts. (Sec. 12, act of 
 July 31, 1894, as amended, p. 665. ) 
 
 The Bureau of EfBcieney shall investigate the methods 
 of transacting the public business in the Bureau of In- 
 ternal Revenue and prepare recommendations for the im- 
 provement tliereof and submit the same to the Secretary 
 of the Treasury as early as practicable for his approval 
 and to Congress at its next session. (Act of Sept. 8, 1916; 
 39 Stat, 804.) 
 
 Regulations pertaining to administrative accounting. (T. 
 D. 2872.) 
 
 Sec. 4. [Act of July 1, 1916 (39 Stat., £63, 336). Sun- 
 dry civil appropriation act far 1916—17.'] That the in- 
 formation acquired in connection with estimates for gen- 
 eral or lump-sum appropriations by section ten of the 
 sundry civil appropriation act, approved August first, 
 iiineteen hundred and fourteen, shall be submitted here- 
 after according to uniform and concise methods which 
 shall be prescribed by the Secretary of the Treasury, but 
 with reference to estimates for pay of mechanics and la- 
 borers there shall be submitted in detail only the ratings 
 and trades and the rates per diem paid or to be paid. 
 
 Sundry civil appropriation act, August 1, 1914 (38 Stat, 
 680), section 10, amends section 6 of the sundry civil ap- 
 propriation act, approved August 24, 1912, requiring in the 
 Annual Book of Estimates following every estimate for a 
 general or lump-sum appropriation (except public buildings 
 or other public works constructed under contract) a state- 
 ment showing the number of persons intended to be em- 
 ployed and the rates of compensation to each and the num- 
 ber employed and the compensation paid each out of the 
 corresponding appropriation for preceding fiscal year. 
 
 Sec. 7. {Act of August 2^, 1913 {37 Stat., 487).] Eeg- ^^oai year, 
 ular appropriations are restricted to fiscal year unless 
 otherwise provided. 
 
 [Extracts from "An act making appropriations for the legislative, execu- 
 tive, and .iudicial expenses of tlie Government for ttie fiscal year ending 
 .June thirtieth, nineteen himdred and nineteen, and for other purposes," 
 approved July 3, 1918 (it)^}zeW^ MiCrOSOft® 
 
 Sec. 1. * * * 
 
 Estimates for 
 lump-sum appro- 
 priations. 
 
58 
 
 OEGASriZATIOK OF OFFICE. 
 
 COLLECTING IMTEENAL REVENUE. 
 
 Salaries 
 expenses. 
 
 and 
 
 Collecting 
 come tax. 
 
 For salaries and expenses of collectors of internal reve- 
 nue, deputy collectors, surveyors, clerks, messengers, and 
 janitors in internal-revenue offices, $3,565,000: Provided, 
 That no part of this amount be used in defraying the 
 expenses of any officer, designated above, subpoenaed by 
 the United States court to attend any trial before a 
 United States court or preliminary examination before 
 any United States commissioner, which expenses shall be 
 paid from the appropriation for "Fees of witnesses. 
 United States courts." 
 
 For salary and expenses of forty revenue agents pro- 
 vided for by law, fees and expenses of gangers, and sal- 
 aries and expenses of storekeepers and storekeeper- 
 gaugers, $1,200,000. 
 in- Collecting the income tax: For expenses of assessing 
 and collecting the income tax as provided in Title I of an 
 Act entitled "An Act to increase the revenue, and for 
 other purposes," approved September eighth, nineteen 
 hundred and sixteen, and subsequent Acts, including the 
 employment of agents, inspectors, deputy collectors, 
 clerks, and messengers in the District of Columbia, and 
 the several collection districts, to be appointed by the 
 Commissioner of Internal Eevenue, with the approval of 
 the Secretary of the Treasury, and the purchase of such 
 supplies, equipment, mechanical devices, and other ar- 
 ticles as may be necessary for use in the District of Co- 
 lumbia and the several collection districts, $3,000,000: . 
 Provided, That not more than $215,000 of the foregoing 
 sum may be used for the employment, in the Bureau of 
 Internal Eevenue in the District of Columbia, of neces- 
 sary clerical and other personal services, and the purchase 
 of such supplies, equipment, mechanical devices, and other 
 articles as may be necessary for use in the District of 
 Columbia. 
 and For expenses of assessing and collecting the internal- 
 under"act Octj^ reveuue taxes, as provided m an Act entitled " An Act to 
 ber 3, 1917. provide revenue to defray war expenses, and for other 
 purposes," approved October third, nineteen hundred and 
 seventeen, including the employment of necessary officers, 
 attorneys, experts, agents, inspectors, deputy collectors, 
 clerks, janitors, and messengers in the District of Colum- 
 bia and the several collection districts, to be appointed as 
 pi'ovided by law, telegraph and telephone service, rental 
 of quarters, postage, and the purchase of such supplies, 
 equipment, mechanical devices, printing, stationery, law 
 books and books of reference, and such other articles as 
 may be necessai-y for use in the District of Columbia and 
 the several collection districts, $8,000,000 : Provided, That 
 not more than $500,000 of the total amount appropriated 
 herein may be expended by the Commissioner of Internal 
 Eevenue for detecting and bringing to trial persons guilty 
 of violati^iiMififeefe^^^Sij laws or conniving at the 
 
 Assessing 
 collecting 
 
OiBGAWIZATIOilSr OF OFFICE. 59 
 
 same, including payments for information and detection 
 of such xiolations : I'rovided further^ Tliat not more than 
 $1,172,000 of the total amount appropriated herein may 
 be expended in the Bureau of Internal Revenue, in th« 
 Distriet of Columbia. 
 
 Collecting the cotton- futures tax: For ^expenses to en- cotton futures. 
 force the provisions of part A of the Act approved Au- 
 gust eleventh, nineteen hundred and sixteen, known as 
 tlie -cotton-futures Act, including the employment of at- 
 torneys, agents, inspectors, deputy collectors, clerks, and 
 messengers at rates to be fixed by the Commissioner of 
 Internal Eevenue, subject to the approval of the Secre- 
 tary of the Treasury, and for the purchase of such sup- 
 plies, equipment, mechanical devices, and other articles 
 as may be necessary, $20,000: Provided^ That no person 
 shall be employed hereunder at a compensation exceed- 
 ing $4,000 per annum. 
 
 Collecting the tax on estates, munitions, and so forth : tionl'^cic! """" 
 For expenses of assessing and collecting the tax as pro- 
 vided by Titles I, II, and III, of an Act entitled "An Act 
 to increase the revenue, and for other purposes," ap- 
 proved September eighth, nineteen hundred and sixteen, 
 and subsequent Acts, and to pay such sums as the Com- 
 missioner of Internal Eevenue, with the appToval of the 
 Secretary of the Treasury, may deem necessary, $340,000 ; 
 and the Commissioner of Internal Eevenue, with the ap- 
 proval of the Secretary of the Treasury, is authorized 
 to appoint and pay from this a|)propriation all necessary 
 officers, experts, agents, inspectors, deputy collectors, 
 clerlis, messengers, and janitors, and to rent such quarters, 
 incur expense for telephone service, purchase such sup- 
 plies, equipment, mechanical devices, and other articles 
 as may be necessary ior employment or use in the District 
 of Columbia, or any collection district of the United 
 States, or any of the Territories thereof: Provided, That 
 not more than $40,000 of the amount appropriated may 
 be used for the employment in tlie Bureau of Internal 
 Eevenue in the District of Columbia of necessary clerical 
 help at rates to be fixed by the Commissioner of Internal 
 Eeveniie, subject to the approval of the Secretary of the 
 Treasury, and for the purchase of such supplies, equip- 
 ment, mechanical devices, and other articles as may be 
 necessary for use in the District of Columbia. 
 
 Eestricting the sale of opium, and so forth: For ex- °p^"™- 
 penses to enforce the provisions of the Act approved De- 
 cember seventeenth, nineteen hundred and fourteen, en- 
 titled "An Act to provide for the registration of, with 
 collectors of internal revenue, and to impose a special 
 tax upon, all persons who produce, import, manufacture, 
 compound, deal in, dispense, sell, distribute, or give away 
 opium or coca leaves, their salts, derivatives, or prepara- 
 tions, and for other purposes," including the employment 
 of agents, deputy collectors, inspectors, chemists, assist- 
 ant chemists, clerks, £Ji®t'fffltBss(*JigllifHar-dsoite field and in , 
 
60 ORGANIZATION OP OFPIGE-. 
 
 the Bureau of Internal Eevenue in the District of Colum- 
 bia, to be appointed by the commissioner of Internal 
 Eevenue, with the approval of the Secretary of the Treas- 
 ury, and for the purchase of such supplies, equipment, 
 mechanical devices, and other articles as may be necessary 
 for use in the District of Columbia and the several col- 
 lection districts, including not to exceed $4 per diem in 
 lieu of subsistence, $325,000. 
 
 ej-'ins""'"^""^ -^^^ ^^^* ^^ offices outside of the District of Columbia, 
 telephone service, and other miscellaneous expenses in- 
 cident to the collection of internal revenue, purchase of 
 necessary books of reference and periodicals for the 
 chemical laboratory and law library, not to exceed $500, 
 and reasonable expenses for not exceeding sixty days im- 
 mediately following the injury of field officers or em- 
 ployees in the Internal-Eevenue Service while in line of 
 duty, of medical attendance, surgeon's and hospital bills 
 made necessary by reason of such injury, and for horses 
 crippled or killed while being used by officers in making 
 raids, not exceeding $150 for any horse so crippled or 
 killed, $100,000. 
 
 cor-rSs" ^ * * ° '^^^ Commissioner of Internal Eevenue shall submit to 
 '"° " ' Congi-ess on the first day of its next regular session a 
 
 detailed statement showing the number, designation, and 
 annual rate of compensation of the persons employed and 
 the amounts expended for rent and other authorized pur- 
 poses in the District of Columbia from the foregoing ap- 
 propriations for the collection of internal revenue. 
 
 That hereaftei" law books, bonks of reference, and periodi- 
 cals for use of any executive department, or other Govern- 
 ment establishment not under an executive department, at 
 the seat of government, shall not be purchased or paid for 
 from any appropriation made for contingent expenses or 
 for any specific or general purpose unless such purchase 
 is authorized and payment therefor specifically provided 
 in the law granting the appropriation. [Sec. 3, legislative, 
 executive, and judicial appropriation act, approved Mar. 
 15, 1898 (30 Stat., 277).] 
 
 Books of reference defined. (VI Comp. Dec, 227, 312.) 
 Report to be made to Congress relating to typewriters, 
 adding machines, and other labor-saving devices, exchange 
 of, price, etc. (Act of JIar. 4, 1915; 38 Stat, 1163.) 
 
 Typp-n-ritiEg Sec. 4. That no part of any money appropriated by 
 machines tliis or P.ny other Act shall be used during the fiscal year 
 
 nineteen hundred and nineteen for the purchase of any 
 typewriting machine at a price in excess of the lowest 
 price paidiDy the Government of the United States for 
 the same make and substantially the same model of ma- 
 chine during the fiscal year nineteen hundred and seven- 
 teen ; such price shall include the value of any typewrit- 
 ing machine or machines given in exchange, * * * 
 
 Sec. 5. Detail of persons in the classified service re- 
 stricted. (Seep. 697.) 
 
 Sec. 6. That all civilian employees of the Governments 
 of the Ui^|^^|tf|eS/^^oy^^|»istrict of Columbia who 
 
ORGANIZATION OF OFFICE. 61 
 
 receive a total of compensation at the rate of $2,500 per 
 anmiia or less, except as otherwise provided in this sec- 
 tion, shall receive, during the fiscal year ending June 
 thirtieth, nineteen hundred and nineteen, additional com- 
 pensation at the rate of $120 per annum : Provided, That 
 such employees as receive a total of annual compensation . 
 at a rate more than $2,500 and less than $2,620 shall re- 
 ceive additional compensation at such a rate per annum 
 as may be necessary to make their salaries, plus their ad- 
 ditional compensation, at the rate of $2,620 per annum, 
 and no employee shall receive additional compensation increased com- 
 under this section at a rate which is more than thirty per p^"^*''°"- 
 centum of the rate of the total annual compensation re- 
 ceived by such employee : Provided, further, That the in- 
 creased compensation at the rates of five and ten per 
 centum for the fiscal year ending June thirtieth, nineteen 
 hundred and eighteen, shall not be computed as salary in 
 construing this section : Provided further. That where an 
 employee in the service on June thirtieth, nineteen hun- 
 dred and seventeen, has received during the fiscal year 
 nineteen hundred an.d eighteen, or shall receive during the 
 fiscal year nineteen hundred and nineteen an increase of 
 salary at a rate in excess of $200 per annum, or where an 
 employee whether previously in the service or not, has 
 entered the service since June thirtieth, nineteen hundred 
 and seventeen, whether such employee has received an in- 
 crease in salary or not, such employees shall be granted 
 the increased compensation provided herein only when 
 and upon the certification of the person in the legislative 
 branch or the head of the department or establishment 
 employing such persons of the ability and qualifications 
 personal to such employees as would justify such in- 
 creased compensation: Provided further. That the in- 
 creased compensation provided in this section to em- 
 ployees whose pay is adjusted from time to time through 
 wage boards or similar authority shall be taken into con- 
 sideration by such wage boards or similar authority in 
 adjusting the pay of such employees. 
 
 Section six of the legislative, executive, and judicial 
 appropriation Act approved May tenth, nineteen hundred 
 and sixteen, as amended by the naval appropriation Act 
 approved August twenty-ninth, nineteen hundred and 
 sixteen, shall not operate to prevent anyone from receiv- 
 ing the additional compensation provided in this section 
 who otherwise is entitled to receive the same. 
 
 Employees paid from lump-sum appropriations. (2o 
 Comp. Dec, 109.) 
 
 Reports shall be submitted to Congress on the first clay 
 of the next regular session showing for the first four 
 months of the fiscal year the average number of employ- 
 Digitized by Microsoft® 
 
 Reports to 
 Congress. 
 
62 OBGAlinZATIOiT GF GFiFIOE. 
 
 ees in each department, bmeau, office, or esta,blishment re- 
 ceiving the increased compensation at the rate of $130 
 per annum aD.d the average number bj grades Teceiving 
 tlie same at each other rate. 
 
 Gaugers' right to mci-eased compensation. (23 Comp. 
 
 Dec, 670, 672.) ^, -r , -,-, 
 
 Increase of compensation. (Dept. Cir. No. S4, July 11, 
 
 1918.) 
 Sec. 4. [Extract .from tTie legislative, executive, and 
 judicial appropriation act for the fisrcaZ year ending June 
 Travel ..-SO, 1909, approved May m, 1908 {35 Btat., Hi)-1 It 
 menf m^ioye^ ^hall be the duty of the head of each executive depart- 
 S™vashi^|ton''S mcnt and other government establishment at Washing- 
 ported.™^"'' '" tin to submit to Congress at the beginning of each regu- 
 lar session a statement showing in detail what officers or 
 employees (other than special agents, inspectors, or em- 
 ployees, who in the discharge of their regular duties are 
 required to constantly travel) of such executive depart- 
 ment or other govermnent establishment Tiave traveled on 
 official business from Washington to points outside of the 
 District of Columbia during the preceding fiscal year, 
 giving in each case the full title of the official or em- 
 ployee, the destination or destinations of sucli travel, the 
 business or woric on account of which the same was_ made, 
 and the total expense to tlie United States charged in each 
 case. 
 
 Travel Regulations Cir. No. 31, June 25, 1914; T. D. 
 34583. 
 
 A person going to accept an offlee or employment is not 
 ■entitled to reimbursement for travel -expenses incident 
 thereto. (4 Comp. Dec. 629; 5 Id., 180, 663; 6 Id., 672; 
 20 Id., 73.) 
 
 Appropriation for Office- Force. 
 
 [Ijeglslative, executive, and juflicial appropriation act for tho fiscal 
 year ending June 30, 191Q, approved July 3, 1018 (40 Stat., 757).] 
 
 Section 6 of the act of March 4, 1915 (38 Stat., 1049). 
 provides that "The officers and employees of the United 
 States whose salaries are herein appropriated for are es- 
 tablished and shall continue from yeai' to .\ear to the extent 
 they shall be appropriated for by Congress," 
 
 A fourth-class clerk is an inferior officer of the United 
 States within the meaning of article 2, section 2, of the 
 Constitution. (27 Op. Atty. CJen., 219.) 
 
 As to officer's right to whole amount of the annual salary 
 fixed by the Revised .Statutes, altliough Congress has appro- 
 priated a less amount as compensation for the fiscal year. 
 (Wallace's case, 2 Lawrence Dec, 376; 28 Int. Rev. Rec, 
 271; Fisher's case, 15 Ct. Cls., 323 ; 109 U. S., 143.) 
 
 Double salaries restricted, p. 699. 
 
 Transfer of -duties to clerks of lower class. Section 3, 
 act August 15, 1876 (19 Ptat, 143). (See Appendix, p. 693.) 
 
 Employees to be paid from specific appropriations. Act 
 August .5, 1882 (22 Stat, 255), page 695. 
 
 Transfers and details. Appendix, page 696. 
 
 Temporary detail of clerks. Section 166, Revised Stat- 
 utes, as amended Iby section 3 of the act of May 28, 189G 
 (29 Stat, 140). 
 
 President's authority to presca-ibe regulations concerning 
 appoifil^iagCf ft^€M;ilTOa;cS£®., p. 693.) 
 
OKGANIZATION OF OFriGE. 63 
 
 Preference in appointment to public office of honorably 
 fllsehargecl soldiers. (Sec. 1754, R. S., p. 693; 17 Op. Atty. 
 Gen., 194.) 
 
 Official correspondence. (T. D. 1572.) 
 
 An act to regulate and improve tlie civil service of the 
 tJnited States (civil-service act). Act January 16, 1883 
 (22 Stat, 403). 
 
 Subordinate officers of the several departments should 
 communicate with Congress on matters involving legisla- 
 tion through tlie heads of their departments. (17 Op. Atty. 
 Gen., 254..) 
 
 President lioosevelt's order. (Dept. Cir. No. 11, January 
 29, 1906.) 
 
 President Taft's order prescribing metliod of communi- 
 cation with Congress. (Dept. Cir. No. 64, 1909; T. D. 
 30151.) 
 
 Influencing legislation by employee in Treasury Depart- 
 ment. (Executive Order No. 151-i, April 8, 1912; Dept. 
 Cir. No. 19.) 
 
 The right of persons employed in the civil service of the 
 TJnited States, either individually or collectively, to peti- 
 tion Congress, or any member thereof, or to furnish in- 
 formation to either House of Congress, or to any committee 
 or member thereof, shall not be denied or interfered Vi'ith. 
 (Act of Aug. 24, 1912; 37 Stat., 555.) 
 
 Employee wrongfully suspended ; civil-service law. 
 (United States v. Wickersham, 201 U. S., 390.) 
 
 The question of reinstatement is one of administrative 
 discretion, and not to be granted except when consistent 
 with the interests of the public service. (24 Op. Atty. 
 Gen., 103, Aug. 27, 1902.) 
 
 Reinstatements. (19 Op. Atty. Gen., 416, 434, 533; 25 Id., 
 618.) 
 
 With the exception of section 13, act of January 10, 1883, 
 reproduced in section 120 of the criminal code (act of 
 March 4, 1909), which prohibits promotion, degradation, 
 removal, or discharge of any officer or employee for giving 
 or withholding or neglecting to make any contribution of 
 money or other valuable tiling for any political purpose, no 
 legislative declaration expressly bearing upon removals 
 from office is made. (Taylor v. Taft, 24 App. D. C, 95.) 
 
 Civil-service rules promulgated by the Executive, so far 
 as they deal with the Executive right of removal, are but 
 expressions of the will of the President, and are regula- 
 tions imposed by him upon his own action, or that of heads 
 of departments appointed by him. They do not give the 
 employees within tlie classified civil service any such tenure 
 of office as to confer upon them a property right in the office 
 or place. (Morgan v. Nunn, 84 Fed., 551; Page v. Moffett, 
 85 Fed., 38 ; T. D. 19027 ; Keim r. United States, 177 U. S., 
 290, affirming 33 Ct. Cls., 174.) 
 
 Members of a family in public service limited. (18 Op. 
 Atty. Gen., 83; 26 Id., 260, 301; 30 Id., 169.) 
 
 Monthly salaries. Method of prorating for fractional 
 part of a month. (XIII Comp. Dec, 1.) 
 
 Rules for division of time and computation of pay for 
 persons in tlie Government service receiving a yearly or 
 monthly compensation. ( Sec. 6, act of June 30, 190G ; 34 
 Stat., 763 (sundry civil appropriation act) ; Dept. Cir. No. 
 85, March 24, 1917; 20 Comp. Dec, 772, 867.) 
 
 When civil employees of the United States are injured 
 while in the performance of their duties, they are, by the 
 terms of the Federal comiiensation act of September 7, 
 1916 (39 Stat, 742), entitled to "reasonable medical, surgi- 
 cal, and hospital services and supplies " for the injury, 
 whether or not disability has arisen. 
 
 Money due to an employee of the Government, and in 
 the hands of a dislQipSie^tefe^M'fflSOfiifl/if® attached by a 
 
64 OKGANIZATION OF OFFICE. 
 
 process issued from a State court. (10 Op. Atty. Gen., 
 120.) 
 
 Meaning and scope of sec. 1766, where a clerk is a judg- 
 ment creditor of the United States. (26 Op. Atty. Gen., 77.) 
 
 Sec. 7. [Act of March 15, 1898 {30 Stat., 317). Legis- 
 lative, executive, and judicial o^ppropHation act.'] 
 
 That section five of the Act making appropriations for 
 legislative, executive, and judicial expenses, approved 
 March third, eighteen hundred and ninety-three, is 
 hereby amended to read as follows: 
 time"'?equir'To{ Hereafter it shall be the duty of the heads of the sev- 
 cierks and other eral Executive Departments, in the interest of the public 
 emp oyees. gervice, to require of all clerks and other employees, of 
 
 whatever grade or class, in their respective Departments, 
 not less than seven hours of labor each day, except Sun- 
 days and days declared public holidays by law or Execu- 
 tive order: Provided, That the heads of the Departments 
 may, by special order, stating the reason, further extend 
 the hours of any clerk or employee in their Departments, 
 respectively; but in case of an extension it shall be with- 
 11™!*^ <> ^ y ^' out additional compensation : Provided further. That the 
 with pay. head of any Department may grant thirty days' annual 
 
 leave with pay in any one year to each clerk or employee : 
 additiomi'^^^^- "^^^ provided fuHhcr, That where some member of the 
 nuai leave in immediate family of a clerk or employee is afflicted witk 
 lesl, et°c'. "'^''' a contagious disease and requires the care and attendance 
 of such employee, or where his or her presence in the De- 
 partment would jeopardize the health of fellow-clerks, 
 and in exceptional and meritorious cases, where a clerk 
 or employee is personally ill, and where to limit the an- 
 nual leave to thirty days in any one calendar year would 
 work peculiar hardship, it may be extended, in the dis- 
 cretion of the head of the Department, with pay, not 
 exceeding thirty days in any one case or in any one cal- 
 endar year. 
 
 This section shall not be construed to mean that so long 
 as a clerk or employee is borne upon the rolls of the De- 
 partment in excess of the time herein provided for or 
 granted that he or she shall be entitled to pay during the 
 period of such excessive absence, but that the pay shall 
 stop upon the expiration of the granted leave. * * * 
 
 The act of July 7, 1898 (30 Stat., 653), provides that 
 " >:othing contained in section seven of the act making ap- 
 propriations for the legislative, executive, and judicial ex- 
 penses of the Government for the fiscal year eighteen hun- 
 dred and ninety-nine, approved March fifteenth, eighteen 
 hundred and ninety-eight, shall be construed to prevent the 
 head of any executive department from granting thirty 
 days' annual leave with pay in any one year to a clerk or 
 employee, notwithstanding such clerk or employee may have 
 had during such year not exceeding thirty days leave with 
 pay on account of sickness as provided in said section 
 seven." (Dept. Cir. No. 52, July 7, 1908.) 
 
 Hours of labor. (Cir. No. Gofi ; T. D. 7.56.) Time records. 
 Hours of work. ( Cir. No. 67, Dec. 27, 1910. T. D. 31150 ) 
 
OEGAHriZTATIOlir OF OFFICE. 65 
 
 Meaning of the phrase " Exceptional and meritorious." 
 (20 Op. Atty. Gen., 716.) 
 
 Recording clocks not to be used. (Act July 7, 1898; 30 
 Stat, 655.) 
 
 It shall be the duty of the heads of the several executive 
 departments of the Government to report to Congress each 
 year in the annual estimates the number of employees in 
 each bureau and office and the salaries of each who are be- 
 low a fair standard of efficiency. (Sec. 2, act of July 11, 
 1890, Supp. R. S., vol. 1, 2d ed., p. 773; 26 Stat., 268.) 
 
 The act of March 15, 1898 (30 Stat., 316), and the acts 
 amendatory thereof governing the subject of leaves of ab- 
 sence in the executive departments, do not entitle employees 
 to leaves of absence as a matter of right, but simply author- 
 ize the heads of departments, in their discretion, to grant 
 leaves of absence with pay within the limits therein fixed. 
 (22 Compt. Dec, 103.), 
 
 Time and leave regulations. (Dept. Circular No. 56, De- 
 cember 9, 1912 ; effective January 1, 1913. ) 
 
 Leave af absence of revenue agents and inspectors. ( Sec. 
 413, act of September 8, 1916.) 
 Sec. 4. [Act of February U, i899 {30 Stat, 889). Leg- J^rm otjem-^ 
 islatlve, executive and judicial aj>propriation act, 1900.'] extended. 
 
 The establishment of a civil pension roll or an honorable jj „ honorary 
 service roll, or the exemption of any of the officers, clerks, service roii. 
 and i^ersons in the public service from the existing laws 
 respecting employment in such service, is hereby pro- 
 hibited : Provided, That the thirty days' annual leave of thirty d a y s' 
 absence with pay in any one year to clerks and employees annual leave oi 
 in the several Executive Departments authorized by ex- 
 isting law shall be exclusive of Sundays and legal holi- 
 days. > 
 
 Sec. 1301 (c) [Act of Felruary U, 1919 {Jfi Stat, 
 1057). Extract.'] There is hereby appropriated, out of 
 any money in the Treasury not otherwise appropriated, 
 for the fiscal year ending June 30, 1919, the sum of Fiscal year 
 $7,500,000 for the expenses of assessing and collecting the |Si9? '"™ ^°' 
 internal-revenue taxes as provided in this Act,. including 
 the employment of necessary officers, attorneys, experts, 
 agents, inspectors, deputy collectors, clerks, janitors, and 
 messengers, in the District of Columbia and the several 
 collection districts, to be appointed as provided by law, 
 telegraph and telephone service, rental and repair of 
 quarters, postage, and the purchase of such supplies, 
 equipment, furniture, mechanical devices, printing, sta- 
 tionery, law books and books of reference, not to exceed 
 $500 for street car fares in the District of Columbia, and 
 such other articles as may be necessary for use in the 
 District of Columbia and the several collection districts : 
 Provided, That not more than $2,750,000 of the total 
 amount appropriated by this section may be expended in 
 the Bureau of Internal Eevenue, in the District of Co- 
 lumbia. 
 
 Sec. 3. [^Extract from the legislative, executive, and Temporary 
 judicial appropriation act for the fiscal year ending June ? ' « ; V V"^" 
 30, 1903, approved Apmg&keWO^.Ml&^^mEi, 120, 171.)] fl"d1ervice "" 
 140184°— 20 5 
 
66 OEGANIZATION OF OFFICE. 
 
 That the additional clerks on the temporary rolls and 
 other employees rendered necessary because of increased 
 work incident to the war with Spain, and under the Act 
 of June thirteenth, eighteen hundred and ninety-eight, 
 providing for war expenditures and for other purposes, 
 heretofore appointed and who are now employed in the 
 several departments of the Government, are hereby 
 transferred to the classified service as of their present 
 grade or rate of compensation, respectively, and shall 
 be continued in the several departments where now em- 
 ployed, without further examination, subject, however, 
 to transfer, promotion, or removal the same as other 
 clerks and employees in the classified service. 
 ceipts^of inte?: ^^^- ^39. Separate accounts shall be kept at the De- 
 nai revenue. partmcut of the Treasury of all moneys received from 
 internal duties or taxes in each of the respective States, 
 Territories, and collection districts, and of the amount of 
 each species of duty and tax that shall accrue; so as to 
 exhibit, as far as may be, the amount collected from each 
 source of revenue, with the moneys paid as compensation 
 and for allowances to the collectors and deputy collectors, 
 inspectors, and other officers employed in each of the 
 respective States, Territories, and collection districts. 
 Approval of accounting forms. (T. D. 169-5.) 
 issurtotructioM Sec. 251. The Secretary of the Treasury shall make 
 to^Miiectoit""™ ^^^ issue from time to time such mstructions and regu- 
 lations to the several collectors, * * * ^]jo j^ay j.^. 
 ceiye Treasury notes, United States notes, or other se- 
 curities of the United States, * * * as he shall deem 
 best calculated to promote the public convenience and 
 security, and to protect the United States, as well as 
 individuals, from fraud and loss; he shall prescribe 
 forms of entries, oaths, bonds, and others papers, and 
 rules and regulations, not inconsistent with law, to be 
 used under and in the execution and enforcement of the 
 various provisions of the internal-revenue laws, * * * ; 
 • he shall give such directions to collectors and prescribe, 
 
 such rules and forms to be observed by them as may be 
 necessary for the proper execution of the law ; * * *. 
 
 Regulations of the Secretary of tlie Treasury adopting 
 different forms for use in applications for abatement of 
 assessment and for return of moneys alleged to have been 
 wrongfully collected as such have force of law and will be 
 judicially noticed by Federal courts. (Hastings r. Herold, 
 184 Fed., 759.) 
 
 rectipfa"om in' Sec. 261. The Secretary of the Treasury shall annu- 
 ternai taxBs. ally, in tlic month of December, lay before Congress an 
 abstract, in tabular form, of the separate accounts of 
 moneys received from internal duties or taxes in each of 
 the respective States, Territories, and collection districts, 
 required by section two hundred and thirty-nine, to be 
 kept at the Treasury. 
 
 AJ^mz^^iiyeMi^^mm receipts and expenditures. 
 (Sec. 15, act of July 31, 1894, 28 Stat, 210.) 
 
OEGANIZATION OF OFFICE. 67 
 
 Sec. 196. The head of each Department, except the ^f^g^^^^ J^p°^^ 
 Department of Justice, shall furnish to the Congressional partment. 
 Printer copies of the documents usually accompanying his 
 annual report, on or before the first day of November in 
 each year, and a copy of his annual report on or before 
 the third Monday in^November in each year. 
 
 Provided, That of the reports of * * " the Commis- 
 sioner of Internal Revenue, * * * the usual number 
 only shall be printed. (Act of January 12, 1895, 28 Stat., 
 601, 616; Supp., R. S., vol. 2, p. 356.) 
 
 No head of any executive department, or of any bureau, 
 branch, or office of the Government, shall cause to be 
 printed, nor shall the Public Printer print, any document 
 or matter except that vi'hlch is authorized by law and neces- 
 sary to the public business ; and executive officers, before 
 transmitting their annual reports, shall carefully examine 
 the same and all accompanying documents, and exclude 
 therefrom all matter, including engravings, maps, drawings, 
 and illustrations, except such as they shall certify in their 
 letters" transmitting such reports are necessary and relate 
 entirely to the transaction of the public business. (Sec. 
 94, act of January 12, 1895, 28 Stat., 601.) 
 
 No printing and binding shall be done by the Public 
 Printer for the several executive and judicial departments 
 of the Government in any fiscal year in excess of the 
 amount of the allotment for such departments. 
 
 Heads of executive departments shall direct T\'hether 
 reports made to them by bureau chiefs and chiefs of 
 divisions shall be printed or not. (Act of August 5, 1892, 
 27 Stat, 388.) 
 
 No report, document, or publication of any kind dis- 
 tributed by or from an executive department or bureau 
 of the Government shall, contain any notice that same is 
 sent with " the compliments " of an officer of the Govern- 
 ment, or with any special notice that it is so sent, except 
 that notice that it has been sent, with a request for an ac- 
 knowledgment of its receipt, may be given. (Act of 
 January 12, 1895, 28 Stat, 601, 620.) 
 
 Mailing lists prohibited by act of August 23, 1912 (37 
 Stat., 414). 
 
 Sec. 3. [Act of July 1, 1916 (39 Stat., 9^62). Sundry ^^nnf^^^i '^^ 
 civil apprapriation act for 1916-17.1 That appropria- (uniishin"'' copy 
 tions herein and hereafter made for printing and binding *° p""*^''- 
 shall not be used for any annual report or the accom- 
 panying documents unless the copy therefor is furnished 
 to the Public Printer in the following manner : Copies of 
 the documents accompanying such annual reports on or 
 before the fifteenth day of October of each year; copies 
 of the annual reports on or before the fifteenth day of 
 November of each year; complete revised proofs of the 
 accompanying documents and the annual reports on the 
 tenth and twentieth days of November of each year, re- 
 spectively ; and all of said annual reports and accompany- 
 ing documents shall be printed, made public, and avail- 
 able for distribution not later than within the first five 
 days after the assembling of each regular session of Con- 
 gress. The provisions of this section shall not apply to 
 the. annual reports of the Smithsonian Institution, the 
 Commissioner of Patents, or the Comptroller of the Cur- 
 rency^ Digitized by Microsoft® 
 
Digitized by Microsoft® 
 
Title XXXV— INTERNAL REVENUE. 
 
 REVISED STATUTES. 
 
 Chapter One. 
 OFFICEES OF INTEKNAL REVENUE. 
 
 Sec. 
 
 3140 (amended). Definitions. 
 
 3141. Collection districts. 
 
 3142. Collectors. 
 
 1. Act August 23, 1912. Number of 
 
 collectors. ,w 
 
 1. Act July 16, 1914. Same. ^ 
 
 3143 (amended). Collectors' bonds. 
 
 3144 (amended). Collectors to be dis- 
 
 bursing agents. 
 
 3145. (Obsolete.) 
 
 3146. Accounts of collectors adjusted 
 
 according to fiscal year. 
 
 3147. Apportionment of compensation 
 
 of collectors. 
 
 [3118]. Sees. 12 and 13, act February 
 8, 1875, as amended. Collec- 
 tors' compensation and allow- 
 ances ; deputy collectors and 
 their salaries. 
 1. Act October 22, 1913. Appoint- 
 ment of deputy collectors and 
 deputy marshals. 
 13. Act February 8, 1875, as amended 
 by act March 1, 1879. Collec- 
 tors' compensation and allow- 
 anceg. 
 
 1301 (b). Act February 24, 1919. Re- 
 adjustments and increase of 
 salaries. 
 
 3149 (amended). Disability or vacancy 
 in office of collector. 
 1. Act of April 17, 1900. Authority 
 to detail deputy collectors. 
 
 3150. Deputy collector, when entitled 
 
 to collectors' salary. 
 
 3151. (Repealed.) 
 
 31.52 (amended). Internal revenue 
 agents. 
 1. Act April 28, 1902. Additional 
 
 agents. 
 1. Act April 17, 1900. Compensa- 
 tion ; subsistence allowance. 
 1. Act Feb. 3, 1905. Agents exam- 
 ining accounts. 
 1302. Act February 24, 1919. Leave of 
 absence. 
 13. Act August 1, 1914. Subsistence 
 allowance outside District of 
 
 Columbia. r^. ... , u 
 
 Digitized by 
 
 Sec. 
 1. 
 
 3153. 
 
 1. 
 64. 
 
 2. 
 
 Act May 10, 1916. Posts of duty 
 of employees ; per diem in lieu 
 of subsistence. 
 
 Storekeepers ; salaries and bonds. 
 Office of storekeeper and 
 gauger. 
 
 Act August 15, 1876. Compensa- 
 tion and bond. 
 
 Act August 28, 1894. Storekeep- 
 ers at distilleries that mash 
 less than 60 bushels of grain 
 per day. 
 
 Act June 21, 1879. Storekeepers 
 at distilleries whose regis- 
 tered capacity is 20 bushels 
 or less. 
 
 Act February 24, 1911. Compen- 
 
 )a- sation. 
 
 Act June 28, 1902. Assignment 
 of storekeeper and gauger. 
 
 3154. Assignment and transfer of store- 
 
 keepers. 
 63. Act August 28, 1894 (amended). 
 Compensation of storekeepers 
 and gaugers. Transfers and 
 details. 
 1. Act April 17, 1900. Accounts of 
 gaugers, etc., detailed. 
 
 3155. Temporary storekeepers. 
 
 3156. Gaugers. 
 
 65. Act August 28, 1894. Assign- 
 ment of gaugers. 
 31.57. Gangers' fees. 
 
 1. Act June 19, 1878. Same. 
 1. Act August 15, 1876. Gaugers 
 only paid for actual service. 
 1. Act July 7, 1898. Gangers' com- 
 pensation. 
 402. Act September 8, 1916. Assign- 
 ment to fruit distilleries and 
 wineries. 
 Act June 23, 1910. Cumulative 
 annual leave of absence to 
 storekeepers, gaugers, and 
 storekeeper-gangers. 
 1. Act July 7, 1884. Officers in com- 
 mission not to exceed 15 per 
 cent of the number employed. 
 3158. Statement under oath of fees, 
 etc. ; penalty. 
 Microsoft® gg 
 
70 
 
 OFFICERS OF INTEENAL KEVENUE. 
 
 Sec. 
 
 3159. (Repealed.) 
 
 3160. (Repealed.) 
 
 3161. Officers in charge of exportation 
 
 and drawbacks. 
 
 3162. Collectors and snperintondents 
 
 of exports may administer 
 oaths. 
 
 3163 (amended). Duties of collectors 
 
 and internal revenue agents. 
 1. Act August 15, 1876. Commis- 
 sioner may transfer and sus- 
 pend certain officers. 
 
 3164 (amended). Collectors to report 
 
 violations of law to district 
 attorney. 
 
 3165 (amended). Revenue officers who 
 
 may administer oaths and 
 take evidence. 
 8. Act August 24, 1912. Oaths to 
 expense accounts. 
 
 3166. Revenue officers specially author- 
 ized to make seizures. 
 
 3167 (amended). Revenue officers dis- 
 closing operations of manufac- 
 turers, etc. ; penalty. 
 
 See. 
 
 3168. Officers not to be interested in 
 
 certain manufactures ; pen- 
 alty. 
 
 3169. Officers guilty of extortion, re- 
 
 ceiving unlawful fees, and 
 other unlawful acts; penalty. 
 1. Act March 1, 1879. Collectors, 
 etc., issuing stamps before 
 payment ; penalty. 
 23. Act February 8, 1875. Laws im- 
 posiBg punishment on internal 
 revenue officers applied to 
 certain other classes of per- 
 sons. 
 
 3170. District attorney or marshal ac- 
 
 cepting or demanding any- 
 thing for compromise of vio- 
 lations of law. 
 
 3171 (amended). Officers suffering in- 
 juries may maintain suit for 
 damages. 
 
 1301 (d). Act February 24, 1919. Ad- 
 visory Tax Board. 
 
 Definitions. 
 
 Sec. 3140. [Amended hy act of February 27, 1877 {19 
 Stat., 2i0).'\ The word " State," when used in this Title, 
 shall be construed to include the Territories and the Dis- 
 trict of Columbia, where such construction is necessary 
 to carry out its provisions. And where not otherwise dis- 
 tinctly expressed or manifestly incompatible with the in- 
 tent thereof, the word " person," as used in this title, 
 shall be construed to mean and include a partnership, 
 association, company, or corporation, as well as a natural 
 person. 
 
 Sec. 1, R. S. In determining the meaning of the Revised 
 Statutes, or of any act or resolution of Congress passed sub- 
 sequent to February twenty-fifth, eighteen hundred and 
 seventy-one, words importing the singular number may ex- 
 tend and be applied to several persons or things ; words im- 
 porting the plural number may include the singular ; words 
 importing the masculine gender may be applied to females ; 
 * * * the word " person " may extend and be applied to 
 partnerships and corporations, and the reference to any 
 officer shall include any person authorized by law to per- 
 form the duties of such office, unless the context shows that 
 such words were intended to be used in a more limited 
 sense ; and a requirement of an " oath " shall be deemed 
 complied with by making affirmation in judicial form. 
 
 Sec. 2. The word " county " includes a parish, or any other 
 equivalent subdivision of a State or Territory of the United 
 States. 
 
 Sec. 3. The word " vessel " includes every description of 
 water craft or other artificial contrivance used, or capable 
 of being used, as a means of transportation on water. 
 
 Sec. 4. The word "vehicle" includes every description of 
 carriage or other artificial contrivance used, or capable of 
 being used, as a means of transportation on land. 
 
 Sec. 5. The word " company " or " association," when 
 used in reference to a corporation, shall be deemed to em- 
 bracC)|i§*f;ZSC/(tiy'McP@®Oft@ind assigns of such company 
 
OFFICEBS OF INTERNAL REVENUE. 71 
 
 or association," In like manner as if tliese last-named words, 
 or words of similar import, were expressed. 
 
 Person includes corporations. (23 Int. Hev. Rec, 141; 
 15 Op. Attju Gen., 230. ) The term " corporation," as used in 
 the acts of Congress touching internal revenue, does not 
 include a State. The term "person" does not include a 
 State. (12 Op. Atty. Gen., 116. ) 
 
 A railroad wholly owned by a State and operated by it is 
 not taxable under United States revenue laws. ( George v. 
 Atldus, 1 Abb. (U. S.-), 22; 8 Int. Rev. Rec, 113.) 
 
 When a State engages in commercial business for a profit, 
 it can not claim exemption from taxation on the principle 
 tliat it is a tax on the instrumentalities of the State govern- 
 ment. (South Carolina v. United States, 39 Ct CIs., 257: 
 T. T>. 759 ; 199 U. S., 437 ; T. D. 961.) 
 
 As to the meaning of the term "revenue law." (United 
 States -I'. Hill, 123 U S., 681.) 
 
 The general provisions of Chapters 1 and 2 apply to taxes 
 imposed by subsequent legislation containing no provisions 
 to the contrary. (United States v. Barnes, 222 U. S., 513; 
 T. D. 1751.) 
 
 Sec. 3141. For the purpose of assessing, levying, and collection ais- 
 colleeting the taxes provided by the internal-revenue 
 laws, the President niay establish •cbnvenient collection- 
 districts, and for that purpose he may subdivide any 
 State, Territory, or the District of Columbia, or may 
 UTiite two or more States or Territories into one district, 
 and may from timB to time alter said districts : Provided, 
 That the number of districts in any State .shall not exceed 
 the num.ber of Representatives in Congress to which such- 
 State was entitled in the Thirty-seventh Congress, except 
 in such States as were entitled to an increased representa- 
 tion in the Thirty-eighth Congress, in which States the 
 number of districts shall not exceed the number of Rep- 
 resentatives to which any such State was so entitled : And 
 •provided further^ That in the State of California the ;,oJgJt''j,j' """^ 
 President may establish a number of districts not ex- ^ Act Feb.^ 27, 
 ceeding the number of Senators and Representatives to ° ' 
 which said State was entitled, in the Thirty-seventh Con- 
 gress. 
 
 Tlae power of the President to cliange or alter collection 
 tlistricts considered. (10 Op. Atty. Gen., 469; 12 Op. 
 Atty. Gen., 51; 14 Op. Atty. Gen., 215.) 
 
 Supreme Court will take judicial notice that the United 
 States is divided into collection districts for revenue pur- 
 poses. -(United States 'o. Jackson, 104 U. S., 41; 28 Int. 
 Rev. Rec., 12.) 
 
 Sec. 3142. The President, by and with the advice and collectors. 
 consent of the Senate^ shall appoint for each collection 
 district a collector, who shall be a resident of tlie same. 
 When two or more collection-districts are united by him, 
 he may designate from among the existing officers of 
 such districts one collector for the new district, or, at his 
 discretion, he may make a new appointment of such 
 officer for said district. 
 
 Assessors 'abolished. Act of December 24, 18^. 
 
 The legi6la:tive appropriation act for 1877, passed Aug- 
 
 ust 15, 1876 (l?^M/zi^J>y^gm§0^"^'"^«'- "* *"- 
 ternal-revenue districts to \sV. 
 
 1877 (19 Stat., 
 20). 
 
-72 OFFICERS OF INTERNAL REVENUE. 
 
 The appropriation act for 1878, passed March 3, 187T 
 (19 Stat, 303), reduced the number to 126. (Supp. R. S., 
 135.) 
 
 ■ Executive order of June 25, 1883, as modified by orders 
 of June 30, 1883, and October 13 and December 5, 1883, 
 reduced the number of districts from 126 to 84. 
 
 Executive order of February 13, 1884, reestablished the 
 district of Nevada (which in 1883 was consolidated with 
 Fourth California), making the number of districts 85. 
 
 The number of districts was reduced from 85 to 63 by 
 
 Executive order of May 21, 1887. (33 Int. Rev. Kec, 157.) 
 
 Hawaii constituted an internal-revenue district by act 
 
 of April 30, 1900 (31 Stat.. 141), to take efifect June 14, 
 
 1900, page 373. (T. D. 157.) 
 
 District of Oklahoma es'sablished February 6, 1911. 
 Under existing law there is no limitation placed on the 
 tei-m of ofiice of collectors of internal revenue, and in this 
 respect this "office differs from other civil officers of the 
 Government. (Commissioners' reports, 1877 and 1881.) 
 
 Judicial notice will be taken of the official character and 
 the official acts of the collector and his deputy. (Leach v. 
 Snyder (1886), 112 Pa., 161.) 
 
 Regulations relating to leaves of absence of collectors ; 
 use of facsimile signatures on official papers not permit- 
 ted. (T. D. 1716.) 
 
 Sec. 238. The commissions of all officers employed in 
 levying or collecting the public revenue shall be made out 
 and recorded in the Department of the Treasury, and the 
 seal of the Department affixed thereto. But the seal shall 
 jiot be affixed to any such commission before the same has 
 been signed by the President, 
 ^^^N^mberofcoi- g^^_ ^ j. .^^^ ^^ Auffust 23, 1912 {37 Stat., 381).-] On 
 and after October first, nineteen hundred and twelve, 
 the whole number of collection districts for the collec- 
 tion of internal revenue and the whole number of col- 
 lectors of internal revenue shall not exceed sixty-three. 
 Sec. 1. [Act of July 16, 19U {38 Stat, 4^4, 475).] On 
 and after October first, nineteen hundred and fourteen, 
 the whole number of collection districts for the collection 
 of internal revenue and the whole number of collectors 
 of internal revenue shall not exceed sixty-four. 
 
 Collection districts listed on page 47. 
 
 boifds".""*" " Sec. 3143. [Ame7ide(l ly sec. 2, wet March 1, 1879 {20 
 Stat.. 327) , and ly sec. 5, act March 2, 1895 {28 Stat., 807) .] 
 Every collector, before entering upon the duties of his 
 office, shall execute a bond for such amount as may be 
 prescribed by the Commissioner of Internal Eevenue, 
 under the direction of the Secretary of the Treasury, with 
 not less than five sureties, to be approved by the Solicitor 
 of the Treasury, conditioned that said collector shall faith- 
 fully perform the duties of his office according to law, and 
 shall justly and faithfully account for and pay over to the 
 United States, in compliance with the order or regulations 
 of the Secretary of the Treasury, all public moneys which 
 may come into his hands or possession ; and he shall, 
 from time to time, renew, strengthen, and increase his 
 official bond, as the Secretary of the Treasury may direct, 
 with mc\Pm^m^YSimmmH the said commissioner 
 
OFFICEES OP INTERNAL REVENUE. 73 
 
 shall prescribe ; and he shall execute h new bond whenever 
 required so to do by the Secretary of the Treasury, with 
 such conditions as may be required by law or prescribed 
 by the Commissioner of Internal Kevenue, with not less 
 than five sureties ; which new bond shall be in lieu of any 
 former bond or bonds of such collector in respect to all 
 liabilities accruing after the date of its approval by the 
 Solicitor of the Treasury. Said bonds shall be filed in the 
 office of the Secretary of the Treasui-y. 
 
 Proceedings against delinquent collectors. (Sees. 3624, 
 "^ 3625, 3633, Appendix, p. 666. ) 
 
 Claims for credit in suits brought by the United States. 
 (See. 951, p. 685.) 
 
 Act relative to allowing certain corporations to be ac- 
 cepted as sui-ety. (Act August 13, 1894.) See p. 612. 
 
 A bond takes effect upon its acceptance and approval. 
 (19 How., 73.) 
 
 Collector approving worthless bonds ; liability of collec- 
 tor's bond for loss sustained by Government. (United 
 States V. Thorn, 9 Int. Rev. Rec, 65 ; Fed. Cas. No. 16493.) 
 
 Collectors are liable to prosecution for accepting fraudu- 
 lent bonds, as well as liable on their official bonds for loss. 
 (United States v. Callicott, 7 Int. Rev. Rec, 177; Fed Cas. 
 No. 14710.) 
 
 Collector and deputy collector indicted jointly with others. 
 
 Allowance to collectors; set-offs. (Hall v. United States, 
 91 U. S. (1 Otto), 559.) 
 
 'i Gangers' fees received by collectors; Treasury settle- 
 ments. (Soule V. United States, 100 U. S. (10 Otto), 8; 26 
 Int. Rev. Rec, 4.) 
 
 Question of credits, time when compensation commences. 
 (United States v. Flanders, 112 U. S., 88; 30 Int. Rev. Rec, 
 397.) 
 
 Due diligence. (United States v. Kimball, 101 U. S. 
 (11 Otto), 725.) 
 
 Money received from sale of stamps ; use of old form of 
 bond. (United States v. Hough, 103 U. S. (13 Otto), 71.) 
 
 Bond not void because district is not stated. (United 
 States 17. Jackson, 104 U. S. (14 Otto), 41; 28 Int. Rev. 
 Rec, 12.) 
 
 Collectors' receipts; certified transcripts. (United States 
 V. Hunt, 105 U. S. (15 Otto), 188; 28 Int. Rev. Rec, 134.) 
 
 Evidence. (United States v. Stone, 106 U. S. (16 Otto), 
 ■ 52.5.) 
 
 The addition of a condition, not specifically named in the 
 act of Congress, that obligors shall not be liable if each and 
 every deputy appointed by the collector shall truly and faith- 
 fully execute and discharge all the duties of such deputy 
 collector according to law, does not relieve the sureties. 
 Mode of settling accounts of collectors ; mode of prosecuting 
 suits, etc. (Chadwick v. United States, 3 Fed., 750.) 
 
 Sureties liable for taxes collected and not accounted for. 
 (United States v. Harry Chase, 22 Int. Rev. Rec, 11; Fed. 
 Cas. No. 14788; Kingly. United States, 99 U. S., 229.) 
 
 A bond requiring a faithful performance of official duty is 
 as binding upon the principal and his sureties as if all the 
 statutory duties and official regulations of the office were 
 inserted in the bond. (Pond v. United States, 111 Fed., 
 095.) 
 
 Liability of sureties when duties are imposed on principal 
 by laws subsequent to the execution of the bond. (United 
 States I'. McCartney, 26 Int. Rev. Rec, 28.) This question 
 
 conVdrd.Tlo"g«.*W«®"' °''^''' ''"^'^ 
 
74 '05TICEKS OF INTERNAL BEVENUE. 
 
 Change in the regulations subsequent to the execution of 
 bond putting deputy collectors in the classified civil service 
 did not relieve the sureties from liatillity. (Lafean v. 
 United States, 122 Fed., 333 ; T. D. 653. ) 
 
 Liability of a surety on an offlcLal bond is stricti juris ; 
 surety not to be held responsible ior the conduct of his 
 principal beyond the scope of his nndertaking reasonably 
 construed. (United States v. Adams, 31 Int. Bev. R«c., 
 261 ; 24 Fed. 348. ) 
 
 In a suit on collector's tocmd, where one of the sureties had 
 signed the bond in blank already signed 'by the principal, 
 with an understanding with the principal that only a cer- 
 tain amount was to be inserted therein as penalty^ and with 
 the further understanding that two additional suretiesL*ere 
 to be furnished, each worth a certain sum, and where the 
 bond was afterwards completed by the insertion of an 
 amount larger than that a,greed upon, and signed by two 
 worthless sureties, and afterwards the bond was delivered 
 to tlie proper ofiieer of tlie Government, who accepted it in 
 the belief that it was properly executed and with no notice 
 of the private agreement, held that tlie first surety was 
 liable. Case not distinguished in principle from Dair v. 
 United States, 16 WalL, 1. (Butler v. United States, 21 
 WalL. 272.) 
 
 A Judgment against a defaulting collector does jiot bind a 
 surety on his bond nniess the -surety was a party to the 
 action ; and no Federal statute creates a lien on tlie property 
 ■of a collector of internal revenue or his sureties from the 
 exeentlon of his official bond, or from the date of any default 
 thereon. (United States v. lugates, 48 Fed., 251.) 
 
 Aeconnts must be stated to show liajhillty jinder each 
 bond. (United States i'. Barton Abel, 1-5 Int. Eev. Rec, 
 41 and 50 ; Fed. Cas. No. 14417.) 
 
 Public officers liable for all moneys that come into their 
 hands officially. (United States r. Prescott, 3 How., 378; 
 Pond r. United States, 111 Fed., 989. ) 
 
 The payment of money to the deputy collector without 
 receiving stamps therefor was not a payment of the tax 
 on the brandy ; the money did not become pul)lic money in 
 the liands of the collector, and tlie sureties were not liable 
 for it. (United States r. Hermance, 15 Blatcli., 6; Fed. 
 Cas. No. 15855.) 
 
 Stamps are the equivalent of money in the hands of the 
 collector. (Pond i-. United States, 111 Fed., 989.) 
 
 Liabilities of sureties on temporarv bond. (United States 
 V. Kirkpatrick. 9 Wlieat., 720.) 
 
 The collector's bond is a contract for tlie indemnity of the 
 United States alone and not for the indemnity of private 
 persons. (Clark r. United States, 60 Ga., 156.) 
 
 The direction of the commissioner to execute a new bond 
 must be considered as the direction of the Secretary of the 
 Treasury, {Soule r. United States, 100 U. S., 8.) 
 
 If the name of a person in a written instrument was 
 wrong, or applies to a wrong person, the court will correct 
 it by construction, when it is apparent upon the face of the 
 instrument that the error exists and in what manner it 
 should be corrected to csirry out the intention of the parties. 
 (Kichmond v. Woodwai-d, 32 Vt., 283.) 
 
 A married woman will not be accepted as a surety. 
 
 No surety can hold office under liis principal. (43 Int. 
 Rev, Kec, 438 ; Dept. Cir. No. 70, Nov. 23, 1907.) 
 
 Death of a surety does not relieve estate. ^Pond v. 
 United States, 111 Fed., 989.) 
 
 Official bonds — preparation, sureties, renewal, notices of 
 apprpyat.etc, ,<D£nt. Cir. No. 65, May 29, 1905.) 
 
 UiS^ltJ^smfvSecmS^on of bonds under the Treas- 
 ury Department. (D^t. Cir, No. 70, Nov. 23, 1907.) 
 
OPFICEKS or INTEENAl, REVENUE. 75 
 
 Where under the act of March 2, 1895, page — , an officer 
 renews his bond by giving a bond during the same term of 
 office, the new bond does not operate to release the sureties 
 on the first bond from liability for future transactions, but 
 the sureties on the old and new bonds are jointly and sev- 
 erally liable therefor. (5 Comp. Dec, 918.) 
 
 OfBcial bonds are to be examined every two years, and to 
 be renewed every four years or oftener. These bonds are 
 to be filed with the Secretary of tlie Treasury. (Sec. 5, 
 act of March 2, 1895, 28 Stat, ?64.) See page 617. 
 
 Notice of deficiency in accounts of princiijals to be given 
 to sureties upon bonds of United States officials ; limita,tion 
 of time within which suit shall be brought against sureties 
 on said bond. (Act of xiugust 8, 1888. See page 618.) 
 
 ■ Sec. 3144. [Aniended by sec. 2, act of March 1, 1870 
 (20 Stat., 327), and ly sec. 5 of the act of March 2, 1895 
 {28 Stat., 807).} It shall be "the duty of collectors of collectors to 
 internal revenue to act as disbursing agents of the Treas- tgeiTtl'^'"'""^"''' 
 ury for the payment of all expenses of collection of taxes 
 and other expenditures for the internal revenue service 
 within their respective districts, under regulations and 
 instructions from the Secretary of the Treasury, on 
 giving good and sufficient bond, with such sureties, in 
 such form, and in such penal sum, as shall be prescribed 
 * * * and approved by the Secretary of the Treasury, 
 for the faithful performance of their duties as such dis- 
 bursing agents; biit no additional compensation shall be 
 paid to collectors for such services. 
 
 The words " by the First Comptroller of tlie Treasury " 
 omitted in xiew of the following act : Hereafter all bonds of 
 * * * collectors of internal revenue, * * * either as 
 such officers or as disbursing officers of the Treasury, * * * 
 and all such bonds now on file in the Office of the Comp- 
 troller of the Treasury shall 'be transmitted to the Secre- 
 tary of the Treasury and filed as he may direct ; and the 
 duties now required by law of the Comptroller of the Treas- 
 ury in I'egard to such bonds, as the successor of the * * * 
 First Comptroller of the Treasury, sliall hereafter be per- 
 formed by the Secretary of the Treasury, * * '■ [Sec. 
 5, act of March 2, 1895 (28 Stat., 807).] 
 
 As to duties of disbursing officers, see Appendix, section 
 3620 et seq., page 662. 
 
 Dist)ursmg oificers are responsible for the identity of the 
 parties to whom they are authorized to pay money tad for 
 the genuineness of signatures to the vouchers returned by 
 them. (Hartson v. United States, 21 Ct. Cls., 451.) 
 
 The bond i-equired from the collector as disbursing agent 
 is separate from and additional to his bond as collector. 
 (Hall V. United States, 17 Ct. Cls., 39. See Chadwick v. 
 United States, 3 Fed., 750.) 
 
 Bond of collector as disbursing agent held to cover dis- 
 bursements to storekeepers, although tlie office of store- 
 keeper was created by a law passed subsequent to date of 
 bond. (United States v. McCartney and others, 1 Fed., 
 104; 26 Int. Bev, Rec., 28.) 
 
 The sureties on this bond (if individuals) must be other 
 than those on bond as collector ; but a corporate surety; 
 duly qualified, may be accepted as surety on both bonds. 
 
 This bond must not be executed until after the collector 
 lias fully qualified as such by executing his bond as col- 
 lector and taking the oath of office. (Dept. Cir. No. -191, 
 October 12, 1897; 4:^^iizWbfmtdmhft® 
 
76 OFFICERS OF INTERNAL, REVENUE. 
 
 Dating checks on Svinday to be paifl the next day allow- 
 able if necessary. (18 Oompt. Dec, 606.) 
 
 Sec. 3145. [Superseded hy sections 12 and 13, act of 
 Feht'uary 8, 1S76, as amended. See sec. 314^.] 
 Accounts ad- Sec. 3146. In adjusting the accounts of collectors (ac- 
 t™fifcarye°ar'!'''® cruing after June thirtieth, eighteen hundred and sixty- 
 four) and in the payment of their compensation for 
 services, the fiscal year of the Treasury shall be observed. 
 
 Collectors' revenue accounts to be rendered quarterly, 
 page 130. 
 
 Collectors' disbursing accounts to be rendered monthly, 
 page 665. 
 
 See section 237, Revised Statutes, commencement of fiscal 
 year. (34 Int. Rev. Rec, 197.) 
 
 Collections made within fiscal year to be deposited within 
 said year. (T. D. 2332.) 
 
 Sec. 3147. "Wlien any part of the compensation of the 
 Apportionment coUcctor of any district is by commission upon assess- 
 
 "t '"iierto'rs'*'''" ^^^^ts or coUectious, and in consequence of a new ap- 
 pointment, is due to more than one collector within the 
 same year, such commissions shall be apportioned be- 
 tween such collectors; but in no case shall a greater 
 amount of the commissions be allowed to two or more - 
 collectors in the same district than shall have been au- 
 thorized by law to be allowed to one collector, and the 
 same rules shall apply to the salaries and commissions of 
 assessors and collectors heretofore earned and accrued, v^ 
 Certificate o t But uo payment shall be made to collectors, on account 
 
 quS!™""^"^ " of salaries or commissions, without the certificate of the 
 Commissioner of Internal Revenue that all reports re- 
 quired by law or regulation have been received, or that 
 a satisfactory explanation has been rendered to him of 
 the cause of delay. 
 
 See section 12, act of July 31, 1894, page 663, which 
 rendered the first paragraph of this section inoperative. 
 
 As to certificate of due diligence, see section 8218, page 
 136. 
 
 Circular No. 27.5, February 1.5, 1884 (30 Int. Rev. Rec, 
 53), no payments to be made to a collector on account of 
 .salaries, etc., untir all reports required by the regulations 
 are received or the failure to render same satisfactorily 
 explained. ■ 
 
 Penalty for failure to make reports. Section 101, Crimi- 
 nal Code act of March 4, 1909 (35 Stat., 1107), p. 671. 
 
 Deputy col- [Sec. 3148.] [Superseded hy see. 12, act of February 
 S, 1876 {18 Stat., 309), as amended hy see. 2, act of 
 March 1, 1879 {20 Stat., 327).-] That each collector of 
 internal revenue shall be authorized to appoint, by an 
 instrument in writing under his hand, as many depu- 
 ties as he may think proper, to be compensated for their 
 services by such allowances as shall be made by the 
 Secretary of the Treasury, upon the recommendation 
 of the Commissioner of Internal Revenue. 
 
 Allowances shall also be made in like manner for 
 salary ai]0/g[fflfeffic/e&jp(ftfeP®if/if®llectors, all of which shall 
 
 lectors. 
 
OFFICEES or INTERNAL REVENUE. 77 
 
 be in lieu of the salary and commissions heretofore pro- 
 vided by law: 
 
 Provided, hoicever. That the salaries of collectors ytfj'^'*™^^' "^/^^ 
 shall be fixed at two thousand dollars each per annum lectors. 
 where the annual collections amount to twenty-five thou- 
 sand dollars or less, and shall, by the Secretary, on the 
 recommendation of the Commissioner, be graduated up 
 to the maximum limit of four thousand five hundred 
 dollars; which latter sum shall be allowed in all cases 
 where the collections amount to one million of dollars 
 or vipward ; and the collector shall have power to revoke 
 the appointment of any such deputy, giving such notice 
 thereof as the Commissioner of Internal Eevenue may 
 prescribe, and to require and accept bonds or other 
 securities from any deputy ; and actions upon such bonds 
 may be brought in any appropriate district or circuit 
 court of the United States ; which courts are hereby 
 given jurisdiction of such actions concurrently with the 
 courts of the several States. 
 
 Each such deputy shall have the like authority in lectorWuthori- 
 every respect to collect the taxes levied or assessed fc.""^ responsi- 
 within the portion of the district assigned to him which 
 is by law vested in the collector himself; but each col- 
 lector shall, in every respect, be responsible, both to the 
 United States and to individuals, as the case may be, 
 for all moneys collected, and for every act done or 
 neglected to be done, by any of his deputies while acting 
 as such. 
 
 The right of collectors to commissions on taxes collected 
 by the sale of tax-paid sjjirit stamps (sec. 3314, p. 269) 
 was not taken, from them by the act of March 1, 1879. 
 But the total net compensation of collectors can not in 
 any case exceed $4,500 per annum. (United States v. 
 Landram, 32 Int. Rev. Rec, 1.51; 118 U. S., 81.) 
 
 As to compensation for duties performed before taking 
 oath. (United States v. Flanders, 112 U. S., 88; 30 Int. 
 Rev. Rec, 397.) 
 
 Additional allowance of salary to collectors. (Utah 
 case, 2 Lawrence Dec, 559; 28 Int. Rev. Rec, 293.) 
 
 An action by a collector of internal revenue against a 
 deputy collector on his official bond may be removed from 
 the State court to the Federal court under the act of March 
 3, 1875. (Orner v. Saunders, 3 Dillon, 284.) 
 
 The act of August 5, 1909, page 616, does not apply to 
 bonds given by deputy collectors to the collector. (28 
 Op. Atty. Gen., 28.) 
 
 A deputy collector is authorized to act as STich when his 
 commission has been signed and placed in the mail and 
 he is notified thereof by telegram. (United States v. 
 Sykes, 68 Fed., 1000.) 
 
 No appeal lies from the decision of the Secretary as to 
 making further allowances. Compensation of collectors 
 can not be revised by the courts. (United States v. Hall, 
 2 Dillon, 426; 91 U. S., 559.) 
 
 Deputy collectors of internal revenue are appointed 
 tinder section 3148, Revised Statutes, and the power of 
 removal rests with the appointing power, the collector, 
 subject to such requirements as to notice as the Commis- 
 sioner of Int&rnal /E^feffiac/ii£>}iyMKBSB!^S®iiid such action 
 
78 OFFIGEES Oi INTERN Al, REVENUE. 
 
 can not be reviewed by an appeal to the courts. (I'age v. 
 Moffiett, collector, 85 Fed., 38; T. D. 19027.) 
 
 Court of equity will not, by Injunction, restrain a col- 
 lector from making a i-emoval of a subordinate employee. 
 (Morgan v. Nunn, collector, 84 Fed., 551; T. D. 19027; 
 White, collector, v. Berry, 171 U. S., 366.) 
 
 Civil-service law, power of removal. (26 Op. Atty. Gen., 
 363.) 
 
 Appointment and dismissal of deputy collectors. (Cir. 
 No. 717, March 24, 1908; T. D. 1328.) 
 
 Deputy collectors included in the classiiied service. 
 Executive order, November 7, 1906. (T. D. 1091.) 
 
 Power and duties of deputy collectors. (Landram v. 
 "United States, 16 Ct. Cls., 74.) 
 
 Generally speaking, a deputy has power to do every act 
 which his principal may do. (29 Op. Atty. Gen., 119.) 
 
 Assignment of deputy collectors of internal revenue to 
 special or general duty. (Circular letter May 12, 1899; 
 T. D. 21150.) 
 
 Deputy collectors' diary report. (T. D. 1952; T. D. 
 1958; Regs. No. 1, art. 219.) 
 
 For pay purposes all months in the year are reckoned as 
 containing thirty days. (XIII Comp. Dec, 1.) 
 
 Entire time of deputy collectors must be devoted to 
 official duties. (Circular No. 532, May 11, 1899; T. D. 
 21149.) 
 
 Transfer of deputy collector as storekeeper-gauger. (T. 
 D. 1331.) 
 
 The term of office of deputy collectors expires auto- 
 matically upon the appointment of a new collector. (00 
 Op. Atty. Gen., 1; T. D. 1827.) 
 
 A new collector has the right upon taking office to drop 
 deputy collectors and make new appointments in accord- 
 ance with tlie rules of the Civil Service Commission. (T. 
 D. 1828; 26 Op. Atty. Gen., 363.) 
 
 Is a deputy collector an officer? (Landram v. United 
 States, 16 Ct. Cls., 74; Herndon v. United States, 15 Ct. Cls., 
 446 ; Hartson v. United States, 21 Ct. Cls., 451 ; but see 26 
 Op. Atty. Gen., 363.) 
 
 Division deputy collectors not to collect money from 
 special-tax payers, but should see that forms are properly 
 rendered. (T. D. 2247.) 
 
 Appointment of internal-revenue officers, under the Act of 
 October 3, 1913, to be made in accordance with civil-service 
 rules and regulations. (T. I). 2251.) 
 
 Reimbursement of field deputy collectors for necessary 
 traveling expenses and actual expenses inc;urred for lodging 
 and subsistence not in excess of $5 per diem. (T. I>. 2884.) 
 
 ^jAppoi^ntment gj,(,_ ^ j^j^^f ^^ October 22, 1913 {38 Stat., 208).] * * ^ 
 lectors and dep- hereafter any deputy coUector of internal revenuBor depu- 
 uty mars s. ^^ marshal who may be required by law or by authority or 
 direction of the collector of internal revenue or the United 
 States marshal to execute a bond to the collector of in- 
 ternal revenue or United States marshal to secure faithful 
 I)crformance of official duty may be appointed by the 
 said collector or marshal, who may require such bond 
 without regard to the provisions of an act of Congress 
 entitled " An act to regulate and improve the civil service 
 of the United States," approved January sixteenth, 
 eighteen hundred and eighty-three, and amendments 
 theretoj' or any rule or regulation made in pursuance 
 thereof, S^^'IBgf teft^/'9§P§ing said bond shall have 
 
OFFICEES OF INTERNAL REVENUE. 79 
 
 power to revoke the appointment of any subordinate 
 officer or employee and appoint his successor at his dis- 
 cretion without regard to the act, amendments, rules, or 
 regulations aforesaid. 
 
 Sec. 13. [Act of February 8, 1875 (IS Stat, 307), as 
 amended ly sec. 2, act of March 1, 1879 {20 Stat., 327) .] 
 That there shall be further paid, after the account there- 
 of has been rendered to and approved by the proper 
 officers of the Treasury, to each collector, his necessary 
 and reasonable charges for advertising, stationary, and 
 blank books used in the performance of his official duties, collectors' ad- 
 and for postage actually paid on letters and documents tfoV/ryf etc! 
 received or sent and exclusively relating to official busi" 
 ness, but no such accoimt shall be approved or allowed 
 unless it states the date and the particular items of every 
 such expenditure, and shall be verified by the oath of the 
 collector : Provided, That the Secretary of the Treasury, 
 on the recommendation of the Commissioner of Internal g^'^'^^''"'^'' ''"°"'" 
 Eevenue, be authorized to piake such further allowances, 
 from time to time, as may be reasonable, in cases in 
 which, from the territorial extent of the district, or 
 from the amount of internal duties collected, it may seem 
 just to make such allowances; but no such allowance 
 shall be made if more than one year has elapsed since the 
 close of the fiscal year in which the services were rendered. 
 
 But the total net compensation of a collector shall 
 not in any case exceed four thousand five hundred dollars compe^n^tkJn "ot 
 a year; and no collector shall be entitled to any portion collector. 
 of the salary pertaining to the office unless such collector 
 shall have been confirmed by the Senate, except in cases 
 of commissions to fill vacancies occurring during the 
 recess of the Senate. 
 
 Deputy collector's pay. (Hei-ndon's claim, 26 Int. Rev. 
 Rec, 314 ; Herndon r. United States, 15 Ct. Cls., 446 ; 26 Int. 
 Rev. Rec, 198 ; Wilson's case, 2 Lawrence Dec, 206. ) 
 
 Are deputy collectors officers? (26 Op. Atty. Gen., 363.) 
 See note under section 3169, p. 98. 
 
 Questions of salary are questions of contract, and the 
 Government can be sued in Court of Claims when it fails to 
 pav collector Ms salary. (Patton r. United States, 7 Ct. 
 Cls., 362.) 
 
 Compensation of collectors. (Reg. No. 2, revised, p. 104.) 
 
 The salary "of an officer begins from date of taking oath 
 and entering on duty. (IV Comp. Dec, 59.) 
 
 Collectors of internal revenue shall render their revenue 
 accounts quarterly. (Act of May 27, 1908 ; 35 Stat., 317.) 
 
 Freight and express bills to be. paid by direct settlement. 
 (T. D. 1372.) 
 
 Instructions relative to shipments of property by officers 
 of the Internal Revenue Service, and payment of transpor- 
 tation charges on same. (T. D. 1562.) 
 
 See Articles 184-187, Regulations No. 2, revised July 
 5, 1916. 
 
 Collectors' stationery to be furnished on requisition; 
 collectors can not be reimbursed for money expended for 
 stationery from their private funds. (T. D.- 1815.) 
 
 Instructions relative to preparation of vouchers, etc. 
 
 (T. D. 1904.) Digitized by Microsoft® 
 
80 OFFICEES OF INTERNAL REVENUE. 
 
 Readjustment Qec. 1301 (b). [Extract from act of Fehrv.ary 24-, 
 Bafader'"'' "' 1919 {40 Stat., 1057).] The salaries of collectors' may be 
 readjusted and increased under such regulations as may 
 be prescribed by the Commissioner, subject to the ap- 
 proval of the Secretary, but no collector shall receive a 
 salary in excess of $6,000 a year. 
 
 Salaries are to be determined on basis of total number of 
 individual and corporation income and profits tax returns 
 (nontaxable returns excluded) received in the respective 
 internal - revenue collection districts. (T. D. 2808.) 
 Amended by T. D. 2902, the words " nontaxable returns ex- 
 cluded " being eliminated. 
 
 Disability or Sec. 3149. [Amended hy sec. 2, act of March 1, 1879 
 fl?ro7conector! {^0, Stat., 327).] In case of the. sickness^ or absence of a 
 collector, or in case of his temporary disability to dis- 
 charge his duties, they shall devolve upon his senior 
 deputy, unless he shall have devolved them upon another 
 of his deputies; and for the official acts or defaults of 
 such deputies the collector and his sureties shall be held 
 responsible to the United States. 
 Rtnior deputy In case of a vacancy occurring in the office of collector, 
 cifarge! '^ * ""^ "" the deputies of such collector shall continue to act until 
 his successor is appointed; and imtil a successor is 
 appointed, the deputy of such collector senior in serv- 
 ice shall discharge all the duties of collector, and also 
 the duties of disbursing agent; and of tvi^o or more 
 deputies appointed on the same day, the one resid- 
 ing nearest the residence of the collector when the va- 
 cancy occurred shall discharge the said duties until an- 
 other collector is appointed. 
 
 When it appears to the Secretary of the Treasury that ■ 
 the interest of the Government so requires, he may, by 
 his order, direct the said duties to be performed by such 
 other one of the said deputies as he may designate. 
 Collector's For the official acts and defaults of the deputy upoii 
 d?pmy"ac'ting.'°'^ whom Said dutics are devolved remedy shall be had on 
 the official bond of the collector, as in other cases; and 
 for the official acts and defaults of such deputy as acting 
 disbursing agent, remedy shall be had on the official bond 
 of the collector as disbursing agent. 
 (See section And any bond or security taken from a deputy by a 
 3148, p. 76. collector, pursuant to section twelve of "An act to amend 
 
 existing customs and internal-revenue laws, and for other 
 purposes," approved Febrviary eight, eighteen hundred 
 and seventy-five, shall be available to his legal representa- 
 tives and sureties to indemnify them for loss or damage 
 accruing from any act or omission of duty by the deputy 
 so continuing or succeeding to the duties of such col- 
 lector. 
 
 Suspension of Collector Francis Widmer on charges of 
 fraud by supervisor. Deputy performing duties of collector 
 entitled to compensation. (United States v. Farden, 99 
 U- SD^*ff(y¥^?WB-6So^fe' 347; 25 int. Rev. Rec, 55.) 
 
OFFICEES or INTEBNAL, REVENUE. 8l 
 
 Coiiiniissloner's power to suspend collectors. (Sec. 
 1, act August 15, 1876; p. 93.) 
 
 Death, resignation, or removal of collector ; accounts. 
 (Sec. 3219, p. 137.) 
 
 Sec. 1. [Extract from act of April 17, 1900 {31 Stat., aettS*""*'' *° 
 107).'] Provided, That the Commissioner of Internal 
 lievenue is authorized to detail deputy collectors of in- 
 ternal revenue in one district for special duty in other 
 districts, and the deputy collectors so detailed shall be 
 paid by the collector of internal revenue and disbursing 
 agent for the district for which they are appointed and 
 for which the allowance for their salary and expenses is 
 made, the same as if all their services had been per- 
 formed and expenses incurred in that district. * * * 
 
 Act of June 29, 1906 (34 Stat., 620), provides for a 
 deputy collector in Porto Rico ; page 620. 
 
 Sec. 3150. Any deputy collector who has performed Deputy collect- 
 or may perform, under authority of law, the duties ^J' c'^uerto" s *i'u 
 of any collector in consequence of a vacancy in the office ary. 
 of said collector, shall be entitled to receive the salary 
 and commissions allowed by law to such collector, or the 
 allowance in lieu of said salary and commissions allowed 
 by the Secretary of the Treasury to such collector, and 
 the Secretary of the Treasury may make to such deputy 
 collector such allowance in lieu of salary and commis- 
 sions as he might lawfully make to such collector. And 
 such deputy shall not be debarred from receiving such 
 salary and commissions, or allowances in lieu thereof, 
 by reason of the holding of another Federal office by said 
 collector during the time for which such deputy acts as 
 collector. But all payments to such deputy collector 
 shall be upon duly audited vouchers. 
 
 Deputy collectors' expenses while .-.ttendinj; court. (T. 
 
 D. 1363.) 
 
 Appointment of revenue agents, inspectors, and special 
 
 employees as deputy collectors without compensation to 
 
 enable them to administer oaths. (T. D. 2235; T. D. 
 
 2238; T. D. 2293.) 
 Appointment of special gangers as deiiuty collectors. 
 
 (T. D. 2243.) 
 
 Sec. 3151. [Inspectors of tohacco and cigars; repealed 
 ly act of August 4, 1886 (U Stat., '218).] 
 
 Sec. 3152. [Amended hij sec. 2, act of March i, 1879 j^^^^^^^, ^^^.^ 
 {20 Stat., 327) ; act of July 7, 188^ {23 Stat., 172).] The nue agent.. 
 Commissioner of Internal Eevenue may, whenever m his 
 judgment the necessities of the service so require, em- 
 ploy competent agents, not exceeding at any time twenty 
 in number, to be paid such compensation as he may 
 deem proper, not exceeding in the aggregate any ap- 
 propriation made for that purpose; and he may, at his 
 discretion, assign any such agent to duty under the direc- 
 tion of any officer of internal revenue, or to such other 
 special duty as he may deem necessary; and no general 
 
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82 OFFICERS OF INTERNAL REVENUE. 
 
 or special agent or inspector, by whatever designation 
 he may be known, of the Treasury Department, in con- 
 nection with the internal revenue, * * * except as 
 provided for in this title, shall be appointed, commis- 
 sioned, employed, or continued in office. 
 
 The agents whose employment is authorized by this 
 section shall be known and designated as internal-revenue 
 agents, and they shall have all the powers of entry and 
 examination conferred upon any officer of internal reve- 
 
 3277''3288^ 3318* ■""^' ^^ sections thirty-one hundred and seventy-seven, 
 ■ thirty-two hundred and seventy -seven, thirty-two hun- 
 dred and eighty-six, and thirty-three hundred and 
 eighteen of the Revised Statutes; and all the provisions 
 of said sections, including those imposing fines, for- 
 feitures, penalties, or other punishments for the enforce- 
 ment thereof, are hereby made applicable to the action of 
 internal-revenue agents, in the same manner as if such 
 agents were specially named in each of said sections. 
 Sees. 3167, And all the provisions of sections thirty-one hundred 
 
 3168, 3169, 3171. ^^^ sixty-seveu, thirty-one hundred and sixty-eight, 
 thirty-one hundred and sixty-nine, and thirty-one hun- 
 dred and seventy-one of the Revised Statutes shall apply 
 to internal-revenue agents as fully as to internal-revenue 
 officers. 
 
 The legislative, executive, and judicial appropriation act, 
 approved .July 7, 1884 (23 Stat., 172), provided that there 
 shall not be employed exceeding 20 agent*, in lieu of the 
 number then authorized by law. 
 
 Before this act the number authorized was 35. 
 
 Ten additional internal-revenue agents were authorized 
 by section 3, act of June 13, 1898 (30 Stat., 450). 
 
 Twenty additional clerks and agents authorized bv sec- 
 tion 47, act of June 13, 1898 (30 Stat., 450). 
 
 Per diem in lieu of subsistence for periods less than a day 
 for officers employed under this section. (T. D. 2173.) 
 
 Twenty addi- Sec. 1. [Extract from act of Apnl 28, 1902 {32 Stat., 
 tionai agents. j^Q^ 14^).] * * * and for Salaries and expenses of 
 twenty additional internal revenue agents to be ap- 
 pointed and employed by the Commissioner of Internal 
 Revenue, and these twenty agents to be in lieu of the 
 agents provided for and appointed under the provisions 
 of sections three and forty-seven of the Act of June thir- 
 teenth, eighteen hundred and ninety-eight, providing for 
 war revenue expenditures and other purposes, and these 
 to be the only internal revenue agents employed in addi- 
 tion to those provided for in section three thousand one 
 hundred and fifty-two of the Revised Statutes. The 
 existing provisions of law with regard to internal revenue 
 agents shall apply to the duties, compensation, and ex- 
 penses of these twenty additional agents, * * * 
 
 Act of October 3, 1913 (38 Stat., 180), "income-tax 
 act " : 
 
 That for the purpose of carrying into effect the provisions 
 of section 11 of this act * * * the Commissioner of 
 Inter©jigi;ffife?ehfay,McrdiSO'/?®s authorized to appoint and 
 
OFFICERS OF INTERNAL REVENUE. 83 
 
 pay from this appropriation [appropriation "Collecting 
 the income tax, 1914 "] all necessary * * * agents, in- 
 spectors, * * * ; Provided, That no agent * * * 
 shall receive compensation at a rate higher than that now 
 received by traveling agents on accounts in the Internal- 
 Revenue Service, and no inspector shall receive a compen- 
 sation higher than $5 a day and $3 additional in lieu of 
 subsistence * * * ; Provided, That for a period of 
 two years from and after the passage of this act the force 
 of agents, * * * inspectors, * * * shall be ap- 
 pointed by the Commissioner of Internal Revenue, with 
 the approval of the Secretary of the Treasury, under such 
 rules and regulations as may be fixed by the Secretary of 
 the Treasury to insure faithful and competent service, 
 and with such compensation as the Commissioner of In- 
 ternal Revenue may fix, with the approval of the Secre- 
 tary of the Treasury, within the limitations herein pre- 
 scribed: Provided further, That the force * * * when 
 not employed as herein provided, shall be employed on gen- 
 eral internal-revenue work. (See approi)riation for col- 
 lecting the income tax, act of July 3, 1918, p. 58.) 
 
 Act of August IS, 1914 (38 Stat, 697), "cotton futures 
 , act": 
 
 That the Secretary of the Treasury * ■ * may ap- 
 point agents to conduct the inspection necessary to collect 
 said tax [tax imposed by said act] and otherwise to en- 
 force this act * * * J and may fix the compensation 
 of such agents. (See appropriation for collecting cotton 
 futures tax, act of July 3, 1918, p. 59.) 
 
 Act of December 17, 1914 (38 Stat., 789), opium registra- 
 tion and special tax act: 
 
 That the Commissioner of Internal Revenue, with the 
 approval of the Secretary of the Treasury, is authorized to 
 appoint such agents '' * * in the field and in the Bureau 
 of Internal Revenue in the District of Columbia as may be 
 necessary to enforce the provisions of this actT" ( See appro- 
 priation for restricting the sale of opium, etc., act of July 3, 
 1918, p. 59. 
 
 Cooperation between State and Federal officers. (T. D. 
 1327.) 
 
 Conflict between State and Federal officers. (14 Op. Atty. 
 Gen., 370.) 
 
 Change of legal residence of revenue agent. (17 Compt. 
 Dec, 1012.) 
 
 The power to appoint carries with it the power to dis- 
 miss, and where the commissioner appoints an agent his 
 appointment may be revoked at any time. (Wh'eelock v. 
 United States, 46 Ct. Clms., 1.) 
 
 Appointments of internal-revenue agents, internal-revenue 
 inspectors, clerks, messengers, and deputy collectors under 
 the act of October 3, 1913. (T. D. 2251.) 
 
 Nothing in section 4, act of August 5, 1882 (22 Stat., 2.o.j) , 
 shall be construed to prevent the Commissioner of Internal 
 Revenue from detailing one revenue agent for duty in his 
 office. (Appendix, p. 695.) 
 
 Sec. 1. lExtract from act of April 17, 1900 {31 Stat, 
 107).] * * * The compensation of the chief of the compensation. 
 internal-revenue agents shall not exceed ten dollars per 
 day, and of the other agents not exceeding seven dollars 
 per day each; and for per diem in lieu of subsistence, 
 absent on duty from their legal residence, said agents shall 
 receive at a rate to be fixed by the Secretary of the Treas- 
 ury, not exceeding three dollars per day. * * '" 
 
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84 OFFICERS OF INTEKNAL REVEKUE. 
 
 im*fa«oumr' ^^^- 1- {Act of Felmaoy 3, 1905 (33 Stat.,631,652).'\ 
 iruii, accouD s. jj^j.gj,jj3^2.j,gygjj^^g,aggjj^;g assigned to the duty of- examin- 
 ing accounts of collectors of internal revenue shall receive 
 for per diem in lieu of subsistence, ^rhen absent from 
 their legal residences on duty, a sum, to be fixed by the 
 Commissioner of Internal Revenue, approved by the Sec- 
 retary of the Treasury, not to exceed four dollars. 
 
 Internal-revenue agents and inspectors are not entitled 
 to compensation nor per diem in lieu of subsistence when 
 sick; neither can they be allowed annual leave. (T. D. 
 1580.) 
 
 Salaries not to be paid until after close of the month. 
 (T. D. 1202.) 
 
 Compensation of revenue agents and inspectors. (24 
 Compt. Dec, 500.) 
 Sec. 1302. ^Act of February iH, 1919 {Ifi Stat., 1057). 1 
 That all internal-revenue agents and inspectors shall be 
 Leave of ab- granted leave of absence with pay, which shall not be 
 '^""" cumulative, not to exceed thirty days in any cale^i^ar 
 
 year, under such regulations as the Commissioner, with 
 the approval of the Secretary, may prescribe. 
 H Sec. 13. {Act of August 1, 1914 {38 Stat., 680). 1 The 
 heads of executive departments and other Government 
 establishments are authorized to prescribe per diem rates 
 Subsistence ai- of allowance not exceeding $4 in lieu of subsistence to 
 l°™ District'" of persons engaged in field work or traveling on official 
 •Columbia. Ijusiness outside of the District of Columbia and away 
 
 from their designated posts of duty when not otherwise 
 fixed hj law. For the fiscal year nineteen hundred and 
 sixteen and annually thereafter estimates of appropria- 
 tions from which per diem, allowances are to be paid 
 shall specifically state the rates of such allowances. 
 
 Sec. 1. [Act of May 10, 1916 {39 Stat., 66, 87). '\ Here- 
 after the Commissioner of Internal Revenue shall de- 
 Posts of duty termine and designate the posts of duty of all employees 
 ?CT di'e"m'?n*'u^ of the Internal Revenue Service engaged in field work 
 c£ subsistence, or traveling on official business outside of the District 
 of Columbia, and when ordered from their designated 
 posts of duty all internal revenue agents appointed under 
 section thirty-one hundred and fifty-two. Revised 
 Statutes, as amended, and cotton-futures attorneys, may 
 be granted per diem in lieu of subsistence not exceeding 
 $4, and, when ordered from their designated posts of 
 dut}', income-tax agents and inspectors, special gangers, 
 and special employees may be granted a per diem in lieu 
 of subsistence not exceeding $3, the per diem in lieu of 
 subsistence to be fixed by the Commissioner of Internal 
 Revenue, subject to the approval of the Secretary of 
 the Treasury. 
 
 Per diem allowance of deputy marshals. (T. D. 2167.) 
 
 Sec. 3153. {Amended ly act of August 15, 1876 {19 
 Stat., 152). 1 There shall be appointed by the Secretary 
 
 „tt-. keepers as may oe necessary, who shall each receive such 
 
OFFICERS OF INTERNAL REVENUE. 85 
 
 compensation, not exceeding four dollars a day, to be" 
 paid monthly by the United States, as may be determined 
 by the Commissioner of Internal Revenue. No store- 
 keeper shall be engaged in any other business while in 
 the service of the United States, without the written per- 
 mission of the Commissioner of Internal Revenue. Every 
 store-keeper shall take an oath faithfully to perform the 
 duties of his office, and shall give a bond, to be approved boda 
 by the Commissioner of Internal Revenue, for the faith- 
 ful discharge of his duties, in such form and for such 
 amount as the Commissioner may prescribe. 
 
 Bonds of gangers, storekeepers, and storekeeper-gaugers 
 fixed at $5,000, Rules, Circular 576, July 2, 1900 (T. D. 171). 
 To be renewed every four years. (T. D. 697.) 
 Storekeeper's bond. Form .50 revised. 
 Additional bonds. (T. D. 548.) 
 
 Sec. 1. [Extract from act of August 15, 1876, {19 Stat., n^i^^'^P'"^"'"' 
 152).'] Hereafter no store-keeper shall receive a greater '"" ^ * 
 compensation than four dollars per day; and said 
 gaugers and store-keepers respectively shall only receive 
 compensation when rendering actual service. 
 
 McNeil r. United States. (35 Int. Rev. Rec, 15; 23 Ct. 
 Cls., 413.) 
 
 That the Secretary of the Treasury may, upon the ouce of "store- 
 reconimendation of the Commissioner of Internal Reve- g'r.'i" ^"^ ^°' 
 nue, impose the duties of storekeeper and ganger upon 
 one officer, where the amount of spirits produced at the 
 distillery to which such officer may be assigned, is not 
 sufficient in the judgment of the Commissioner to war- 
 rant the_ employment of two officers to perform the sepa- 
 rate duties of storekeeper and gauger. 
 
 The Secretary of the Treasury may issue a commission compensation. 
 to such officer as storekeeper and gauger, but the com- 
 pensation for his services as storekeeper and gauger 
 shall be that of storekeeper only. 
 
 And the said officer shall before entering upon the dis- ^"""^ 
 charge of such duties give a bond in the penal sum of 
 not less than five thousand dollars for the faithful per- 
 formance of the combined duties of storekeeper and 
 gauger. 
 
 Sec. 64. {Act of August 27, 189k (28 Stat., 509).] That J^^^l^^^^H 
 the officer holding the combined office of storekeeper and Eigrm™t^of! 
 gauger, under the provisions of the legislative, execu- 
 tive, and judicial appropriation act, approved August 
 fifteenth, eighteen hundred and seventy-six (Nineteenth 
 Statutes, page one hundred and fifty-two), may be as- 
 signed by the Commissioner of Internal Revenue to per- 
 form the separate duties of a storekeeper at any dis- 
 tillery, or at any general or special bonded warehouse, 
 or to perform any of the duties of a gauger under the 
 internal-revenue laws. 
 
 And the said officer, before entering upon the dis- ^o""'- 
 charge of such separa^.gd^|kj^slj^^^g^vci.ii, bond to be 
 
86 
 
 OPFICEES OF INTERNAL, REVENUE. 
 
 approved by the Commissioner' of Internal Revenue for 
 the faithful discharge of his duties in such form and 
 for such amount as the Commissioner may prescribe. 
 
 Gangers, storekeepers, and storekeeper-gangers were 
 covered into the classified civil service by Execntive Order, 
 May 6, 1896. 
 
 Storekeeper-ganger's bond. Form 50^ revised. (T. D. 
 1260.) 
 
 Under the old form of bond of a storekeeper-ganger, 
 conditioned solely for the faithful discharge of his duties, 
 recovery i»ay be had only for damages actually sustained 
 by the Government. Such bond did not cover fines and 
 costs imposed in a criminal prosecution of such officer. 
 April 12, 1909. (T. D. 1482.) 
 
 Assignment of storekeeper-gangers at distilleries. (T. 
 D. 2456.) 
 
 Compensation of storekeeper-gangers designated as gen- 
 eral storekeeper-gaugers. (T. Ds. 2408, 2444.) 
 
 Married women not taken as sureties. (T. D. 171.) 
 
 Compensation Sec. 2. [Extroct from act of June SI, 1879 {21 Stat., 
 ferier*" '^'""'l ^^) •] Hereafter storekeepers at distilleries that mash 
 less than sixty bushels of grain per day shall be allowed 
 not exceeding fifty dollars per month. But when one 
 person acts as storekeeper and gauger, his salary shall 
 not exceed four dollars per day for the time actually 
 employed. 
 
 Storekeepers, are not assigned to distilleries of this 
 capacity, but storekeeper-gaugers are so assigned. 
 
 Compensation. ^Act of Febvuaivj 2^, 1911 {36 Stat, 928) .'\ Hereafter 
 storekeepers, gaugers, and storekeeper-gaugers who are 
 assigned to distilleries with a registered capacity of 
 twenty bushels or less, or who are assigned to other places 
 where the compensation is now less than three dollars a 
 day, shall receive three dollstrs a day for services. 
 
 Storekeepers' and storekeeper-gangers' monthly bills. 
 (Regulations No. 2, revised, p. 139.) 
 
 Assignments of 'storekeepers and gaugers must be made 
 by the Commissioner of Internal Revenue upon the recom- 
 mendation of the collector. (T. D. 20695.) 
 
 Assignment of storekeeper-gaugers. ( Cir. No. 712 ; T. 
 D. 1280; Regulations No. 7, revised, p. 43.) 
 
 Transfer of storekeeper-gaugers. (T. D. 1331.) 
 
 Compensation i^ct of June 28, 1902 {32 Stat., P2).] The internal- 
 giuger!'"'.^'""'^"" revenue officer holding the combined office of storekeeper 
 and gauger shall hereafter be known and denominated 
 as a storekeeper-gauger, and when performing the com- 
 bined duties of storekeeper-gauger, or when assigned by 
 the Commissioner of Internal Revenue to perform the 
 duties of a storekeeper only at any distillery, or at any 
 general or special bonded warehouse, he shall receive for 
 his services the compensation of storekeeper only; but 
 when assigned by the Commissioner of Internal Revenue 
 to perform the duties of gauger only, under the internal- 
 revenue laws, as provided by those laws, he shall receive 
 only the compensation for his services and the traveling 
 
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OFFICERS OF INTERNAL REVENUE. 87 
 
 expenses which are allowed by law to United States 
 gangers. 
 
 Assignment of storekeeper-gangers to distilleries, general 
 and special warehouses, etc. (T. D. 2438.) 
 
 Sec. 3154. One or more storekeepers shall be assigned and^^mns""^ o* 
 by the Commissioner of Internal Eevenue to every storekeepers. 
 bonded or distillery warehouse established by law; and 
 any storekeeper may be transferred * * * by the 
 Commissioner of Internal Revenue, from one warehouse 
 to another. 
 
 In the original section power was given to supervisors of 
 internal revenue to transfer storekeepers, but those offices 
 (supervisors) were abolishjecl by the act of August 15, 
 1876. (19 Stat., 143.) 
 
 Internal revenue officers expected to serve where services 
 can be employed to best advantage. (T. D. 18.53.) 
 
 Transfer of storekeepers. (Sec. 3168, p. 92.) 
 
 Sec. 63. [Act of August 27, 1891 m Stat., 609), compensation 
 amended hy act of May 13, 1910 {3G Stat., 369).] ^' 
 
 That storekeepers, storekeeper-gaugers, and gaugers, 
 when traveling to or from assignments, or when trans- 
 ferred from one assignment to another, either in the same 
 district or in different districts, shall receive the same 
 compensation per daj' during the time necessarily occu- 
 pied in traveling that they would be entitled to if on duty 
 at the place to which assigned or transferred, or from 
 which relieved, together with actual and necessary trav- 
 eling expenses. 
 
 Compensatiori and traveling expenses of storekeepers, 
 storekeeper-gaugers, and gaugers. (T. D. 1632; T. D. 1822.) 
 
 Traveling expenses while on leave not allowed. (T. D. 
 1877.) 
 
 Regulations No. 2, relating to traveling expenses of 
 deputy collector where each charge is less than one dollar 
 and does not require a voucher, made applicable to all in- 
 ternal revenue field officers and employees. (T. D. 1690.) 
 
 Sec. 1. [Act of April 17, 1900 {31 Stat., 107).] The Accounts of 
 Commissioner of Internal Eevenue is authorized to detail P"fn?; p^an^^rt 
 gangers, storekeeper-gaugers, and storekeepers appointed ^"^ storeiceepers 
 in one district for special or regular duty in other 
 districts, and the accounts of gaugers, storekeeper- 
 gaugers, and storekeepers so detailed shall be adjusted 
 and paid in the district where they are appointed the 
 same as if assigned to regular duty, without regard to the 
 number of districts in which they may have been em- 
 ployed in any one month, the same as if all their services 
 had been performed and expenses incurred in the district 
 in which appointed, and the order of the Commissioner 
 of Internal Revenue transferring gaugers, storekeeper- 
 gangers, or storekeepers to special work shall be accepted 
 by the accounting officers of the Treasury Department as 
 full authority for proper expenses incurred by said 
 
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88 OFFICERS OF INTERNAL REVENUE, 
 
 gangers, storekeeper-gaugers, or storekeepers, while so 
 
 assigned. 
 
 Laundry chaises not allowed in expense accounts of any 
 employee of field force. (T. D. 1878.) 
 
 BtoTek^'er '^^'^ Sec. 3155. In ease of the absence of any internal-reve- 
 nue storekeeper by reason of sickness or other cause, the 
 collector having control of the warehouse may designate 
 a person to have temporary charge thereof, who shall, 
 during such absence, perform the duties and receive the 
 pay of the storekeeper for the time he may be so em- 
 ployed, and shall for any violation of the law be subject 
 to the same punishment as storekeepers. 
 
 Storekeepers' duties. (Sees. 3267, 3271, 3273, 3274, 3287, 
 3295, 3301, 3302.) 
 
 Penalities prescribed in case of storekeepers. ( Sec. 3300, 
 p. 259.) 
 
 Concerning desigiaatlons during temporary absence of 
 storekeepers or storekeeper-gaugers. (Circular letter, Octo- 
 V)fr 29, 1895; 41 Int. Rev. Rec, 445.) (Regulations No. 7, 
 revised, p. 40.) 
 
 oaugers. guc. 3156. The Secretary of the Treasury shall appoint 
 
 in every collection district where they may be necessary, 
 one or more internal-revenue gangers, who shall each take 
 an oath faithfully to perform his duties, and shall give 
 bond, with one or more sureties, satisfactory to the Com- 
 missioner of Internal Revenue, for the faithful discharge 
 of the duties assigned to him by law or regulations ; and 
 the penal sum of said bond shall not be less than five 
 thousand dollars, and said bond shall be renewed or 
 strengthened as the Commissioner of Internal Revenue 
 may require. The duties of every such ganger shall be 
 performed under the supervision and direction of the col- 
 lector of the district to which he may be assigned, or of 
 the collector in charge of exports at any port of entry to 
 which he may be assigned. 
 
 Ganger's bond. Form 39 revised. 
 
 Compromise of ganger's bond. (Decision of Secretary 
 Sherman, adverse; 23 Int. Rev. Rec. (1877), 139.) 
 
 New bonds can not be accepted from gangers so as to 
 release old bondsnien from responsibilitv. (30 Int. Rev. 
 Rec. (1884), 197.) 
 
 The right of action on the bond prescribed by section 3156 
 is reserved to the Government, notwithstanding an indict- 
 ment, conviction, and sentence under section 3169, unless 
 there is an averment of satisfaction of the latter. (United 
 States r. Cullerton, 8 Biss., 166; 24 Int. Rev. Rec, 68.) 
 
 The offices of ganger, storekeeper, and storekeeper-ganger, 
 where the compensation does not exceed $3 per day, or shall 
 not i.'xceed in the aggregate ,$500 per annum, are not subject 
 to competitive examination or registration, but persons ap- 
 pointed to said offices are subject to an examination to be 
 prescribed by the Secretary of the Treasury, and to be taken 
 before appointment, when possible. (Circular No. 538, re- 
 vi^'ed; T. D. 2] 397.) 
 
 Foi- instructions as to the duties of gaugers, see Regula- 
 tions, No. 11, revised, Gangers' Manual (1913) ; Gangers' 
 Weighing Manual (1911) ; and Reg. No. 7, revised (1914). 
 
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OITICEES OP INTERNAL REVENUE. 89 
 
 Sec. 65. [Act of August 27, 1894 {28 Stat, 509.) ] That ga4\^jf ™""' "' 
 internal-revenue gangers may be assigned to duty at 
 distilleries, rectifying houses, or wherever gauging is 
 required to be done, and transferred from one place of 
 duty to another, by the Commissioner of Internal Reve- 
 nue, in like manner as storekeepers and storekeepers and 
 gangers are now assigned and transferred. 
 
 Ganger's returns. ( Sec. 3291, p. 239. ) 
 Penalties prescribed in case of gaugers. (Sees. 3290, 
 .3292, p. 2.39.) 
 
 Gauging Instruments to be prescribed by tlie Commis- 
 sioner. (Sec. 3249, p. 190.) 
 Transfer of gaugers. (Sec. 3163 amended.) 
 Internal revenue officers expected to serve where services 
 can be employed to best advantage. (T. D. 1853.) 
 
 Sec. 3157. Gaugers shall be entitled to receive such Gaugers' fees, 
 fees, to be determined by the quantity gauged, as may 
 be prescribed by the Commissioner of Internal Ee venue; 
 and said fees, together with their actual and necessary 
 traveling expenses, shall be verified by their oaths, and 
 shall be paid by the United States monthly. 
 
 Sec. 1. [Extract from act of June 19, 1878 {£0 Stat., compensation 
 187).] * * * And hereafter the compensation of °* s""^"'- 
 gaugers shall not exceed five dollars per day while actu- 
 ally employed. 
 
 Compensation of gauger at winery. Sec. 402, act of Sep- 
 tember 8, 1916 ; p. 90. 
 
 Sec 1. [Extract from, act of August 15, 1876 {19 Stat., 
 14-J, 152).] * * * gangers * * * shall only re- 
 ceive compensation when rendering actual service. 
 
 Sec. 1. [Act of July 7,1898 {SO Stat., 656).] Gaugers Gaugers for 
 employed in gauging fruit brandy, and gaugers spe- special duty. 
 cially detailed for special duty under the direction of 
 the Commissioner of Internal Revenue, may be paid, 
 at the discretion of the Commissioner of Internal Reve- 
 nue, either by fees to be determined by the quantity compensation. 
 gauged, or by a daily compensation not to exceed five 
 dollars per diem while actually employed; and in cal- 
 culating the daily compensation of all gaugers paid by ^^''''''h'^""'?™" 
 fees, the quantity gauged for which fees are paid may euiate'd. 
 be determined by dividing the aggregate gallons of 
 spirits gauged by the number of clays on which the 
 gauger was actually employed during the month. 
 
 A gauger can not delegate his authority to any person ; 
 no substitution is authorized. (United States v. Bittinger, 
 21 Int. Rev. Rec, 342; 24 Fed. Cas. No. 14.599.) 
 
 Special gaugers not entitled to traveling expenses in 
 going to and returning from their homes on leave of 
 absence. (T. D. 1722; Aug. 28, 1911.) 
 
 Gaugers' fees. Circular No. 205. Regulations No. 2, 
 revised, p. 88. Gauger's Manual.) 
 
 See T. D. 1632, May 20, 1910, as to compensation and 
 traveling expenses. (T. D. 1722; T. D. 1822.) 
 
 Section 3169, Revised Statutes (second paragraph), 
 makes it an offengj^^^j^gy ^j^^^SJg^^ gauger to re- 
 
90 OFMCEES or INTEKNAL REVENUE. 
 
 ceive any compensation except as by law prescribed for the 
 performance of his duty. 
 
 Rectifiers are entitled to have gangers do their work 
 promptly and accurately without any other pay than the 
 pay received from the Government. Violation of law on 
 the part of a United States gauger in receiving money 
 from rectifiers for gauging spirits. (United States v. 
 Brunjes, 36 Int. Rev. Rec, 47.) 
 
 A ganger's pay being fixed by a general regulation, his 
 case comes within -the prohibition of section 1765, afld he 
 can not receive pay for another service rendered at the 
 same time. (Hedrick v. United States, 16 Ct. Cls., 88.) 
 
 Unofficial gauging for distillers and others. (Regula- 
 tions No. 2, revised, p. 147.) 
 
 Compensation of officers who reinspect spirits. (T. D. 
 1793.) 
 
 frutf'Sueries Sec. 402. [Act of September 8, 1916 {39 Stat., 766).] 
 and wineries. (^) * '■■ '■' the Said Commissioner is hereby autlior- 
 ized to assign to any such distillery and to each winery 
 where wines are to be fortified such number of gangers 
 or storekeeper-gaugers in the capacity of gaugers as may 
 be necessary for the iDroper supervision of the manufac- 
 ture of brandy or the making or fortifying of wines 
 subject to tax imposed by this section; and the compen- 
 sation of such oiEcers shall not exceed $5 per diem while 
 so assigned, together with their actual and necessary 
 traveling expenses, and also a reasonable allowance for 
 their board bills, to be fixed by the Commissioner of In- 
 ternal Revenue, with the approval of the Secretary of 
 the Treasury, but not to exceed $2.50 per diem for said 
 board bills. 
 
 Assignment and compensation of gaugers at fruit dis- 
 tilleries. (T. D. 2491.) 
 
 Board bills of gaugers and storekeeper-gaugers not to be 
 charged in the officer's account where assigned to fruit dis- 
 tilleries. (T. D. 1719.) 
 
 Bence. 
 
 jLeave ot ab- [Act of June 23, 1910 {36 Stat., 592).'] That store- 
 keepers, gaugers, and storekeeper-gaugers shall be, and 
 are hereby, granted a cumulative annual leave of absence, 
 with pay, not to exceed in the aggregate fifteen days for 
 any one year : Provided, That said leave of absence is so 
 computed as not to exceed one and one-quarter days for 
 each twenty-six days said storekeepers, gaugers, and store- 
 keeper-gaugers are actually assigned to duty: Provided 
 further, That such leave shall be operative under such 
 rules and regulations as the Commissioner of Intei'nal 
 Eevenue, with the approval of the Secretary of the Treas- 
 ury, may prescribe. 
 
 (See T. D. 1699; T. D. 1708; T. D. 1775; T. D. 1877.) 
 
 Officers in com- Sec. 1. {Act of JvJy 7, 188I^ {23 Stat., 172).] And 
 Seel™ 15°' p*e? ^^ collector in any district shall recommend, nor shall 
 cent in excess of there be appointed or commissioned, more deputy collec- 
 p^oyed™'""' ^'°' tors, storekeepers, storekeepers and gangers, gaugers, in- 
 spectors, or other officers, or allowed to remain in commis- 
 sion more of any of said officers, at any one time, than 
 
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OFFICERS OF INTEKNAL REVENUE. 91 
 
 fifteen per cent in excess of the number engaged in per- 
 forming duty at the time, and indispensably necessary for 
 the performance of said duty. 
 
 See also legislative, executive, and judicial appropriation 
 act for fiscal year ending June 30, 1886. (Act of March 3, 
 1885; 23 Stat, 404; Supp. R. S., vol. 1, p. 484; Commis- 
 sioner's Report, 1886, p. cxii.) 
 
 Circular No. 310, limiting the number of relatives per- ■ 
 mitted to hold position in the Internal-Revenue service in 
 each district. (33 Int. Rev. Rec, 101.) 
 
 Sec. 3158. Every internal-revenue officer, \\-hose pay- fei'^e™^"' "^ 
 ment, charges, salary, or compensation are composed, 
 wholly or in part, of fees, commissions, allowances, or re- 
 wards, from whatever source derived, shall be required to 
 render to the Commissioner of Internal Eevenue, under 
 regulations to be approved by the Secretary of the Treas- 
 ury, a statement under oath setting forth the entire 
 amount of such fees, commissions, emoluments, or rewards 
 of whatever nature, or from whatever source received, 
 during the time for which said statement is rendered ; and 
 any false statement laiowingly and willfully rendered 
 under the requirements of this section, or regmlations 
 established in accordance therewith, shall be deemed will- 
 ful perjury, and punished in the manner provided by law 
 for the crime of perjury. And any neglect or omission ict^'reb. is, 
 to render such statement when required shall be punished ||^=- (^^ s'^'- 
 by a fine of not less than two hundred dollars, nor more 
 than five hundred dollars, in the discretion of the court. 
 
 Punishment for perjury. (Sec. 125, Criminal Code, Ap- 
 pendix, p. 674.) 
 
 [Secs. 3159 and 3160.] [Repealed ly legislative, vis°?'abSiisheT 
 executive, arid judicial appropriation act of August 15, 
 1876 {19 Stat., 143).'] 
 
 Sec. 3161. In any port of the United States where 
 there is more than one collector of internal revenue, the i,°^*of ^x%r" 
 Secretary of the Treasury may designate one of them taHmis and tow- 
 to have charge of all matters relating to the exportation '"''''^• 
 of articles subject to tax under the internal-revenue laws ; 
 and at any port where he may deem it necessary, there 
 shall be appointed by him an officer to superintend all 
 matters of exportation and drawback, under the direction 
 of the collector. The compensation of the officers last 
 named shall be prescribed by the Secretaiy of the 
 Treasury, but shall not exceed, in any case, an annual 
 rate of \wo thousand dollars, excepting at New York, 
 where such compensation shall be at the annual rate of 
 three thousand dollars. At any port v;_here there is no 
 superintendent of exports, all the duties and services 
 required of such officers shall be performed by the col- 
 lector of internal revenue designated to have charge of 
 exportation. All the books, papers, and documents in, 
 the bureau of drawbacks in the respective ports, relat- 
 ing to the^ drawback of taxes paid under the internal- 
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^2 OFFICERS OF INTERNAL EEVENUE. 
 
 revenue lav/, shall be delivered to the collector of in- 
 ternal revenue in charge of exportation. 
 su^erfrrtentoJta Sec. 3162. Every collector of internal revenue and 
 of exports may every superintendent of exports and drawbacks is 
 a minister oat s. j^y^^j^Qj-j^ed to administer such oaths and to certify to 
 such papers as may be necessary under any regulation 
 prescribed under the authority of the internal-revenue 
 laws. 
 
 See section 3165 in regard to general authority of col- 
 lector to administer oaths. 
 
 jcc?o"f ^.1 '?t Sec. 3163. \ Amended hy sec. 2, act of /March 1, 1879 
 aVnt"s'''"''"™"^ ^^^ /S'^ai^., 327).'] Every collector within his collection 
 district and every internal-revenue agent shall see that 
 all laws and regulations relating to the collection of 
 internal taxes are faithfully executed and complied with, 
 and shall aid in the prevention, detection, and punish- 
 ment of any frauds in relation thereto. And it shall be 
 the duty of every collector and of every internal-reve- 
 nue agent to report to the Commissioner in writing any 
 neglect of duty, incompetency, delinquency, or mal- 
 feasance in office of any internal-revenue officer or agent 
 of -n'hich he may obtain knowledge, with a statement of 
 all the facts in each case, and any evidence sustaining the 
 same. 
 m^°tTp"nste°cCT- '^^^ Commissioner may also transfer any inspector, 
 lain officers. gauger, storekeeper, or storekeeper and ganger, from one 
 distillery, or other place of duty, or from one collection 
 district, to another. 
 
 r>uty of collector to collect taxes. (Sec. 3183, p. 115.) 
 
 Injunction will not lie against an executive officer to 
 prevent his performance of acts directed by law. (Opinion 
 of Solicitor of Treasury in the case of Sidenburg & Co., 
 27 Int. Rev. Rec. 47.) 
 
 Proper course to be pursued by a disbursing officer of 
 the United States who is enjoined by a State court from 
 paying money. (Op. Atty. Gen., 2.5 Int. Rev. Rec, 53; 16 
 Op. Atty. Gen., 257.) 
 
 i Courts will not interfere by injunction with the exer- 
 cise by the executive officers of duties requiring judgment 
 or discretion. (Gaines v. Thompson, 7 Wall., 347; Litch- 
 field r. Register and Receiver, 9 Wall., 575.) 
 
 As to injunctions against collectors. (See under sec. 
 3224 ; also Haffin r. Mason, 15 AVall., 671 ; 17 Int. Rev. Rec, 
 118; 16 Op. Atty. Gen., 257; 25 Int. Rev. Rec, 53.) 
 
 Trespass Avill not lie against a collector for seizure unless 
 the act was tortious or unauthorized. (Averill v. Smith, 
 17 AVall., 82; 17 Int. Rev. Rec, 171.) 
 
 Powers requiring judgment and discretion conferred 
 upon executive officers must be exercised with reason. 
 When clearly reasonable the courts will not interfere with 
 officers acting under discretionary powers. When found 
 to be clearly unreasonable such action will be held void. 
 (Woolner r. Rennick, 170 Fed., 662; T. D. 1425.) 
 
 An officer or agent of the United States engaged in the 
 performance of a duty arising under the laws and authority 
 of the United States is not liable to a criminal prosecu- 
 tion in the courts of a State for acts done by him in Ills 
 official capacity. (In fe Waite, 81 Fed., 359.) 
 
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OFFICBES OP INTERNAL REVENUE. 93 
 
 The collection by internal-revenue officers of a tax 
 erroneously assessed does not constitute a tort. (Armour 
 V. Roberts, 151 Fed., 846.) 
 
 Execution not to issue against officers in case of probable 
 cause. ( Sec. 989, p. 654, Appendix. ) 
 
 Collector acting in good faith under color of office not 
 responsible individually. (Public Service Ry. Co. v. Herold, 
 219 Fed., 301.) 
 
 Internal revenue officers expected to serve where services 
 can be employed to best advantage. (T. D. 1853.) 
 
 Sec. 1, lExtract from act of August 15, 1876 {19 Stat, certain powers 
 162). 1 * * * The powers of transfer, and of sus- ""fe ^f^- ^les 
 pension, or omcers conierred upon supervisors by section missioncr. 
 thirty-one hundred and sixty-three of the Eevised et^runde""^.' 
 Statutes, are hereby vested in the Commissioner of In- ^i^^' cone^ctors!"' 
 ternal Revenue; and all other powers conferred, and 
 duties imposed, by said section upon supervisors, are 
 hereby conferred and imposed upon collectors of internal 
 revenue within their respective districts. In case of the . . 
 
 • supervision [suspension] of a collector, under the power to it^n.'s^ll1" 
 hereby conferred, the Commissioner of Internal Revenue "°° °' collector, 
 shall, as soon thereafter as practicable, report the case to 
 the President through the Secretary of the Treasury for 
 such action as he may deem proper. * * * 
 
 The powers and duties specified in section 3163, Revised 
 Statutes, at the time of the above enactment of August 15, 
 1876, were as follows : 5 
 
 " Sec. 3163. Every supervisor, under the direction of the 
 Commissioner, shall see that all laws and regulations 
 relating to the collection of internal taxes, are faithfully 
 executed and complied with ; and shall aid in the prevention, 
 detection, and punishment of any frauds in relation thereto, 
 and examine into the efficiency and conduct of all officers 
 of internal revenue ; and for such purposes he shall have 
 power to examine all persons, books, papers, accounts, and 
 premises, to administer oaths, and to summon any person 
 to produce books and papers, or to appear and testify under 
 oath before him, and to compel a compliance with such 
 summons in the same manner as collectors may do. He shall 
 report In writing to the Commissioner of Internal Revenue 
 any neglect of duty, incompetency, delinquency, or mal- 
 feasance in office of any internal-revenue officer of which 
 he may obtain knowledge, with a statement of all the facts 
 in each case, and any evidence sustaining the same. He 
 may, by notice In writing, suspend from duty any inspector, 
 ganger, or storekeeper, and he may suspend any collector 
 for fraud, or gross neglect of duty, or abuse of power. In 
 case of the suspension of any inspector, ganger, or store- 
 keeper, he shall Immediately notify the collector of the 
 proper district and the Commissioner of Internal Revenue, 
 and within three days thereafter report his action and his 
 reasons therefor, in writing, to the Commissioner. In case 
 of the suspension of any collector, he shall immediately re- 
 port his action to the Commissioner, with his reasons there- 
 for, in writing, and the Commissioner, in all cases of sus- 
 pension, shall thereupon take such action as he may deem 
 proper. Every supervisor may also transfer any inspector, 
 gauger, or storekeeper from one distillery, or other place of 
 duty, or from one collection district, to another." 
 
 Suspension of collector. (18 Op. Atty. Gen., 318.) 
 
 lecS^oTafeX* t^W^'^^^^O^'^'"^ "' "'" 
 
94 OFFICEKS OF INTERNAL EEVBNUE. 
 
 The extent and limitation of tlie authority of supervisors 
 to compel the production of books and papers under section 
 3163 were discussed in the decision rendered by Judge Treat, 
 in the United States district court, district of Missouri, in 
 the case wherein Frederick Becker refused to obey the order 
 of Supervisor Meyer to produce certain books and papers, 
 and wherein an attachment was asked by the supervisor to 
 compel obedience to his subpoena. (21 Int. Bev. Rec., 243; 
 Fed. Cas. No. 1208.) 
 
 Law not unconstitutional in giving these officers the right 
 to examine books, etc. (Stanwood v. Green, 11 Int. Bev. 
 Bee., 134; Fed. Cas. No. 13301.) 
 
 The authority given to the supervisor to enter vriawrat 
 vrarrant and examine the premises of parties was valid as 
 a civil proceeding, and not in conflict -n-ith the fourth amend- 
 ment to the Constitution, nor was his anthority to compel 
 parties to attend and produce books and testify, in conflict 
 with the fifth amendment to the Constitution. (In re 
 Meador & Brothers (1869), 10 Int. Bev. Bee, 74; Fed. Cas. 
 No. 9375. See also Perry v. Newsome, 10 Int. Kev. Bee., 20 ; 
 Fed. Cas., No. 11009; Stanwood v. Fordyce, 13 Int. Bev. 
 Bee 77; Fed. Cas. No. 15130.) 
 
 concotors to Sec. 3164. {Amendsd hy sec. 1317, act of February ' 
 of'iaw"t'o''*D™ ^-^' ^^^^ (-^ Stai., 1067).'] It shall be the duty of every 
 tiict*Atto?ney.'^" collector of Internal reTenue having knowledge of any 
 willful violation of any law of the United States relating 
 to the revenue, within thirty days after coming into pos- 
 session of such knowledge, to file with the distri<^ attor- 
 ney of the district in which any fine, penalty, or for- 
 feiture may be incurred, a statement of all the facts and 
 circumstances of the case within his knowledge, together 
 with the names of the witnesses, setting forth the pro- 
 A'isions of law believed to be so violated on which reliance 
 may be had for condemnation or conviction. 
 
 Section 838, Bevised Statutes, provides that it is the duty 
 of the district attorney to whom any collector of Internal 
 revenue shall report any case in which any fine, penalty, or 
 forfeiture has been incurred for violation of the internal- 
 revenue law, to cause the proper proceedings to be com- 
 menced and prosecuted without delay, for the fines, pen- 
 alties, and forfeitures provided, xmless, upon inquiry and 
 examination, he shall decide that such proceedings can not 
 properly" be sustained, or that the ends of public justice do 
 not requii-e that proceedings should be instituted ; in which 
 case he shall report the facts to the Commissioner of In- 
 ternal Kevenue for his direction. {Appendix, p. 659.) 
 
 Under the provisions of section 3460, Bevised Statutes, 
 page 363, when any property (except real estate) seized 
 by the collector for violation of internal-revenue laws does 
 not exceed $500 in value it should be proceeded against by 
 the collector, instead of being reported to the district at- 
 torney, unless a bond for costs is given tis provided, (See 
 Begulations, No. 2, revised, p. 131.) 
 
 Under existing law collectors receive no allowance from 
 cases to be reported to United States attorneys. 
 
 Beports to United States attorneys of violations of the 
 internal-revenue law should in all cases give sufficient data 
 to enable them to form an opinion as to whether or not the 
 public interests require prosecution. (T. D. 1597.) 
 
 Instructions to collectors and district attorneys relative 
 to prosecution for violations of internal-revenue laws. 
 (T. D. 1605.) 
 
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OFPICERS OF INTEENAL REVENUE. 95 
 
 United States attorneys instructed to furnisli copies of 
 their reports on Form 112 to the collectors of the districts 
 in all cases where the violation of law was not reported by 
 the collector. (T. D. 1443.) # 
 
 Violations of law to be promptly reported. (T. D. 176.) 
 
 Course to be pursued by revenue agents and collectors in 
 cases of technical violations of law, compromises, etc. (27 
 Int. Rev. Rec, 397.) 
 
 Circular letter to United States attorneys relative . to 
 unnecessary prosecutions. (T. D. 1836.) 
 
 Cases to be carefully examined before proceedings are 
 instituted. (Regulations No. 12, 'p. 26.) 
 
 Instructions as to reporting cases to United States at- 
 torneys for prosecution and as to proper use of Form 166. 
 (T. 1). 1813.) 
 
 Duty of collectors to look after cases in suit. (T. D. 
 987.) 
 
 Prosecution not commenced before indictment. (Vir- 
 ginia V. Paul, 148 U. S., 107.) 
 
 Sec. 3165. [Amended ly sec. 1317, act of February ^4, cei?'™Z ^y 
 1919 {Ifi Stat., 1057).'] Every collector, deputy collector, administer oaths 
 internal-revenue agent, and internal-revenue officer as- deuce. 
 signed to duty under an internal-revenue agent, is author- 
 ized to administer oaths and to take evidence touching 
 any part of the administration of the internal-revenue 
 laws with which he is charged, or where such oaths and 
 evidence are authorized by law or regulation authorized 
 by law to be taken. 
 
 See section 3162, page 92. 
 
 Inspectors appointed under the denatured-alcohol act not 
 authorized to administer oaths. (T. D. 1163.) 
 
 Officers commissioned as deputy collectors to administer 
 oaths. (T. D. 2235; T, D. 2238.) 
 
 Appointment of special gaugers as deputy collectors. 
 (T. D. 2243.) 
 
 Deputy collectors have authority to administer oaths to 
 sureties on distiller's bonds. (United States v. Hardison, 
 135 Fed., 419.) 
 
 Sec. 188. Any officer or clerk of any of the Departments 
 lawfully detailed to investigate frauds, or attempts to 
 defraud, on the Government, or any irregularity or miscon- 
 duct of any officer or agent of the United States, shall have 
 authority to administer an oath to any witness attending to 
 testify or depose in the course of such investigation. 
 
 Sec. 8. [Act of August U, 19M {37 Stat., i87) •] After ^„o^*^^^°^tf - 
 June thirtieth, nineteen hundred and twelve, postmasters, ''"'"^^ af«>"n «• 
 assistant postmasters, collectors of customs, collectors of 
 internal revenue, chief clerks of the various executive de- 
 l^artments and bureaus, or clerks designated by them for 
 the purpose, the superintendent, the acting superintend- 
 ent, custodian, andprincipal clerks of the various, national 
 parks and other Grovernment reservations, superintend- 
 ent, acting superintendents, and principal clerks of the 
 different Indian superintendencies or Indian agencies, 
 and chiefs of field parties, are required, empowered, and 
 authorized, when requested, to administer oaths, required 
 by law or otherwise, to accounts for travel or other ex- 
 penses against the United States, with like force and 
 effect as officers having a seal ; for such services when so 
 
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96 OFriCEES W INTERNAL BBVENUE, 
 
 rendered, or Avhen rendered on demand after said date by 
 notaries public, who at the time are also salaried officers 
 or employees of the United States, no charge shall be 
 made ; and on and after July first, nineteen hundred and 
 twelve, no fee or money paid for the services herein de- 
 scribed shall be paid or reimbursed by the United States. 
 (Dept. Cir. No. 43, September 9, 1912; 19 Compt. Dec, 
 153, 181.) 
 
 Revenue offl- Sec. 3166. Any officer of internal revenue may be spe- 
 trmaifc"6eizur^ls. cially authorized by the Commissioner of Internal Reve- 
 nue to seize any property which may by law be subject to 
 seizure, and for that purpose such officer shall have all the 
 power conferred by law upon collectors ; and such special 
 authority shall be limited in respect of time, place, and 
 kind and class of property, as the Commissioner may 
 specify: Provided, That no collector shall be detailed or 
 authorized to discharge any duty imposed by law upon 
 any other collector. 
 
 Seizure may be made by any unofficial person, but at 
 the peril of responsibility in damages in case the seizure 
 is not adopted by the Government and the property is not 
 condemned. (13 Op. Atty. Gen., 253.) 
 
 A seizure implies an actual caption of the thing seized. (17 
 Op. Atty. Gen., 82.) 
 
 As to seizure of stocks. (Miller f. United States, 11 
 Wall., 268.) 
 
 "Where a lot of ale, within the brewery in which it was 
 made, was seized under process emanating from a State 
 court as a forfeiture to the State and is in the custody of 
 the sheriff awaiting judgment of the court, possession of 
 the sheriff can not be legally interfered with by internal- 
 rp venue or other officers of the United States. (15 Op. Atty. 
 Gen., 370.) 
 
 See section 3453 in regard to seizures, page 594. 
 
 Revenue officers to cooperate with State officers in the 
 suppression of certain violations of law. (T. D. 1327; Int. 
 Rev. Circular No. 710.) 
 
 Unreasonable searches and seizures ; seizures of corre- 
 spondence. (T. D. 1964.) 
 
 cerf'^Tscios^ng Sec. 3167. [Amended h/ see. J 317, act of Fclruary 2^, 
 mfrufacturere' ^^-^^ ^^'^ Stat., 10J7) .] It shall be unlawful for any col- 
 etc. ; penalty. ' lector, deputy coUcctor, agent, clerk, or other officer or 
 employee of the United States to divulge or to make 
 known in any manner whatever not provided by law to 
 any person the operations, style of work, or apparatus 
 of any manufacturer or producer visited by him in the 
 discharge of his official duties, or the amount or source 
 of income^ profits, losses, expenditures, or any particular 
 thereof, set forth or disclosed in any income return, or to 
 permit any income return or copy thereof or any book 
 containing any abstract or particulars thereof to be seen 
 or examined by any person except as provided by law; 
 and it shall be unlawful for any person to print or publish 
 in any manner Avhatever not provided by law any income 
 return, or any part thereof or source of income, profits, 
 losses, or expenditures appearing in any income return; 
 and any^|^ns^e^ijj^a)^ht.^th^^regoing provision shall be 
 
OFFICERS OF INTERNAL REVENUE. 97 
 
 a misdemeanor and be punished by a fine not exceeding 
 $1,000 or by imprisonment not exceeding one year, or 
 both, at the discretion of the court; and if the offender 
 be an officer or employee of the United States he shall 
 be dismissed from office or discharged from employment. 
 
 Information contained in returns or in reference to oflSce 
 procedure witli respect to auditing returns, handling of 
 claims, etc., not to be divulged by employees of Bureau of 
 Internal Revenue. (T. D. 2903.) 
 
 Penalty for disclosing information relative to statements 
 or returns required by the opium act, pages 422, 423. 
 
 This section applies to revenue agents. (See. 3152, p. 
 81.) 
 
 Furnishing statistical information to iDrivate persons. 
 (34 Int. Rev. Rec, 117.) 
 
 Circular letter of August 18, 1897 ; information from of- 
 ficial records. (43 Int. Rev. Rec, 318.) 
 
 Access to departmental records. (Dept. Cir. No. 13; 
 April 26, 1913.) 
 
 Regulations prohibiting the giving out by collectors of 
 records in their offices, or copies thereof, for purposes not 
 contemplated by the internal-revenue laws. (Regulations 
 No. 12, revised, pp. 45, 46; T. D. 18847, January 21, 1898.) 
 
 Circular No. 583 (T. D. 226) ; Circular No. 651 (T. D. 
 727.) 
 
 Circular No. 354 (36 Int. Rev. Rec, 397.) Collectors may 
 furnish for publication monthly statements of the aggre- 
 gate receipts from sale of stamps for tobacco, snuff, cigars, 
 and cigarettes, but any information that would disclose the 
 business done by or the value of stamps issued to any in- 
 dividual manufacturer must be withheld. (T. D. 263.) 
 
 Copies of special tax returns can not be furnished for use 
 in trial of persons indicted for violation of State laws. (T. 
 D. 766.) 
 
 Data from returns made by distiller not to be furnished 
 for use of private litigants. (T. D. 224.) 
 
 Instructions as to giving testimony in State courts : Reve- 
 nue officers are prohibited from testifying in cases not 
 arising under the laws of the United States as to facts that 
 come to their knowledge in their official capacity. (T. D. 
 1218.) 
 
 Instructions to collector as to obeying subpoena and pro- 
 ducing records. (34 Int. Rev. Rec, 261.) 
 
 A collector of internal revenue refusing to testify or fur- 
 nish copies of official papers, acting under instructions from 
 Department. (In re Comingore, 96 Fed., 552; T. D. 21584; 
 Boske V. Comingore, 177 U. S., 459 ; T. D. 104 ; In re Lamb- 
 erton 124 Fed., 446; T. D. 689.) See section 882, page 644. 
 
 Collectors can send, in obedience to a subpoena duces 
 tecum issued for the purpose of having in court certain 
 documents or records, any clerk who can give the necessary 
 testimony. (T. D. 1113.) 
 
 A storekeeper and ganger stationed at a distillery has no 
 right to divulge information in regard to the business of 
 the distiller obtained by him solely in his official capacity 
 as an internal-revenue officer, even when called as a witness 
 in a State court. (Stegall v. Thurman, 175 Fed., 813; T. 
 D. 1616.) 
 
 Employees of the Internal Revenue Bureau are prohibited 
 from disclosing information relative to the business of the 
 bureau, except in the manner authorized by law. (T. D. 
 1745.) 
 
 140184°— 20 7 
 
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98 OITICEES or INTEElfAL BEVENTJE. 
 
 Kegulations as to furnishing United States attorneys 
 ■with certified copies oif returns, Regulations No. 33, re- 
 Tised, art. 227. 
 
 Executive order relative to inspeetion of returns. (T. D. 
 201&) 
 
 Departmental information, hovs^ furnished. (Dept Cir. 
 No. 104, August 3, 1894.) 
 
 Revenue officers forbidden to furnish unauthorized state- 
 ments or certificates in support of claims for remission of 
 tax. (T. D. 2443.) 
 
 be°kiterlst"e°d in S^^. 3168. Any intemal-revenue oflSeer who is or shall 
 certain manufac- become interested, directly or indirectly, in the manuf ac- 
 tures; penalty. ^^^ ^_j tobacco, snuff. Or clgars, or in the production, 
 27,'*''is7f ™a9 rectification, or redistillation of distilled spirits, shall be 
 Stat., ^20), cor- ^ismisse^ from office; and every officer who becomes so 
 error?" """^ ^ interested in any such manufacture or production, recti- 
 fication, or redistillation, or in the production of fer- 
 mented liquors, shall be fined not less than five hundred 
 dollars nor more than five thousand dollars. 
 
 See section 3152, page 81. 
 
 See sections 1788 and 1789, page 671, as to prohibitions 
 against oiCRoers in respect to certain kinds of business. 
 
 See section 244, page 702, as to certain business forbidden 
 to clerks in Treasury Department. 
 
 Circular No. 456, May 5, 1896 ; Government officer not au- 
 thorized to fill in or date blank requests of distillers for re- 
 gauge. 
 
 Circular No. 456 should be construed as prohibiting in- 
 ternal-revenue officers from acting sis agents for distillers 
 in any capacity. (42 Int. Rev. Ree.,.354.) 
 
 Circular No. 66.5, as to the prohibition of revenue officers 
 acting as agents for the sale of books to distillers, brevi'ers, 
 and others, denounces the practice as deterimentai to the 
 public service and against the interests of the Govern- 
 ment. (T. D. 831, October 6, 1904.) 
 
 ternS^^^rcTCnue Sec. 3169. Every officer or agent appointed and acting 
 guilty ot extor- ujjder the authority of any revenue law of the United 
 
 tion, receiving cij j. ' 
 
 unlawful fees, tetateS^ 
 
 toses.' """^ °^' . First. Who is guilty of any extortion or willful oppres- 
 sion under color of liiw ; or. 
 
 Second. Who knowingly demands other or greater sums 
 than are authorized by law, or receives any fee, compen- 
 sation, or reward, except as by law prescribed, for the 
 performance of any duty; or. 
 
 Third. Who willfully neglects to perform any of the 
 duties enjoined on him by law ; or. 
 
 Fourth. "Who conspires or colludes with any other per- 
 son to defraud the United States ; or, 
 
 Fif til. Wlio makes opportunity for any person to de- 
 fraud the United States; or, 
 
 Sixth. Who does or omits to do any act with intent to 
 enable any other person to defraud the United States ; or, 
 
 Seventh. Who negligently or designedly permits any 
 violation of the law by any other person ; or. 
 
 Eighth. Who makes or signs any false entry in any 
 book, or makes or signs any false certificate or return, in 
 
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OFFICERS OF INTERNAL REVENUE. 99 
 
 any case where he is by law or regulation required to 
 make any entry, certificate, or return; or, 
 
 Ninth. Who, having knowledge or information of the 
 violation of any revenue law by any person, or of fraud 
 committed by any person against the United States uijder 
 any revenue law, fails to report, in writing, such knowl- 
 edge or information, to his next superior officer and to the 
 Commissioner of Internal Revenue; or, 
 
 Tenth. Who demands, or accepts, or attempts to col- 
 lect, directly* or indirectly, as payment or gift, or other- 
 wise, any sum of money or other thing of value for the 
 compromise, adjustment, or settlement of any charge or 
 complaint for any violation or alleged violation of law, 
 excejDt as expressly authorized by law so to do, shall be 
 dismissed from office, and shall be held to be guilty of a 
 misdemeanor, and shall be fined not less than one thou- 
 sand dollars nor more than five thousand dollars, and be 
 imprisoned not less than six months nor more than three 
 years. The court shall also render judgment against the 
 said ofiicer or agent for the amount of damages sustained 
 in favor of the party injured, to be collected by execution. 
 One-half of the fine so imposed shall be for the use of the 
 United States, and the other half for the use of the in- 
 former, who shall be ascertained by the judgment of the 
 court. 
 
 Section 3152 makes this section applicable to internal- 
 revenue agents. See p. 81. 
 
 Who are officers? (United States v. Hartwell, 6 Wall., 
 385 ; United States v. Germaine, 99 U. S., 508 ; 26 Op. Atty. 
 Gen., 363; 27 Id., 219.) 
 
 In United States v. Monat, 124 U. S., 308, 307, the court, 
 following the decision in United States i\ Germaine, 99 U. S. 
 508, said that " under the Constitution of the United 
 States all its officers were appointed toy the President, by 
 and with the consent of the Senate, or by a court of law 
 or the head of a Department" (members of the Cabinet), 
 and that unless so appointed they are not, "strictly speak- 
 ing," officers of the United States. 
 
 Congress may use the word " officer " in a more popular 
 sense and the courts in construing an act of Congress must 
 ascertain its meaning. (United States v. Hendee, 124 
 U. S., 309.) 
 
 It would seem to be clear that the recognition in a Fed- 
 eral Statute of a person in the public employ as an officer 
 of the United States constitutes the person such officer. 
 (26 Op. Atty. Gen., 363.) 
 
 As to a member of Congress being an officer. (17 Op. 
 Atty. Gen., 420; Lamar r. United States, 241 U. S. 103.) 
 
 Extortion is defined as " the unlawful taking by an officer, j 
 
 under color of his office, of any money or thing of value / 
 
 that is not due to him or more than his due, or before it 
 is due." (4 Blacks. Com., 141. See also United States v. 
 Beaver, 14 Fed., 595.) 
 
 Knowingly demanding greater sums than are authorized 
 by law. (United States v. Highleyman, 22 Int. Rev. Rec, 
 138; Fed. Cas. No. 15361.) 
 
 Violation of law on the part of a United States ganger in 
 receiving money from a rectifier for gaujjins' spirits. 
 (United States v. Brunjes, 36 Int. Rev. Rec, 47.) 
 
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100 OFFICEES OF INTERNAL REVENUE. 
 
 r Conspiracy. Officers who conspire with others to de- 
 fraud the United States may be prosecuted under section 
 3169 or section 37 of the Criminal Code (a-ct of March 4, 
 1909, p. 677). Section 37 requires proof of some overt act 
 " which is not required under section 3169. (Grunberg v. 
 United States, 145 Fed., 81.) 
 
 Indictment of storeS^eeper-gauger for negligently per- 
 mitting a violation of law. Intent not necessarily an ingre- 
 dient. (Mason v. United States, 162 Fed., 23; T. D. 1408.) 
 Officer of the United States guilty of extortion. (Sec. 
 85, act March 4, 1909, Criminal Code, 35 Stat., 1088.) 
 
 Extortion by internal-revenue informers. (Sec. 145, act 
 March 4, 1909, p. 677.) 
 
 Bribery. (Sees. 39 and 117, act March 4, 1909, pp. 
 675, 676.) 
 
 ■ Embezzlement. (Sees. 86, 87, 89, 90, 91, 93, 94, Act 
 March 4, 1909, 35 Stat., 1088, pp. 667-669.) 
 I Penalty for failure to make reports. (Sec. 1780; super- 
 seded by see. 101, Criminal Code, act Mal:ch 4, 1909, 35 
 Stat., 1088; Appendix, p. 671.) 
 
 False aclinowledgements. (Sec. 31, act March 4, 1909, 
 Crim'inal Code, 35 Stat, 1094.) 
 
 \ Penalty for making false certificate, etc. (Sec. 106, act 
 March 4, 1909, Criminal Code, 35 Stat., 1107.) 
 i Ko limitation of suits against officers. (See " Statute of 
 Limitations," Appendix, p. 653.) 
 
 ( Officers forbidden to aid violators of internal-revenue 
 laws in preparing statements or affidavits. (T. D. 1607.) 
 ^ Officers forbidden to act as agents for prosecution of 
 claims or receiving any gratuity or share or interest in 
 any claim. (Sec. 109, Criminal Code; act of March 4, 
 1909. (35 Stat, 1088.) 
 
 I An officer of internal revenue, named as such in the in- 
 ^ dictment, can not be jointly indicted, for a conspiracy, to 
 j defraud the revenue, with private persons. (United States 
 \v. McDonald, 3 Dill., 543; Fed. Cas. No. 15,670.) 
 V Two offenses constituting substantially one offense 
 joined in the same indictment ; a separate sentence ren- 
 dered on the verdict of each count illegal. (Ex parte 
 Joyce, 23 Int. Rev. Rec, 297 ; 13 Fed. Cas. No. 7556.) 
 ■ Officers prohibited from soliciting for advertising from 
 , taxpayers. (T. D. 2227.) 
 
 ;.s«°"g'*°Btamp3 S^*^- ^- t^^^^ of March 1, 1879 {20 Stat, 327). 1 That 
 btfore paj-ment. ally collectoi' of internal revenue, or any deputy col- 
 lector or other employee of, or person acting for, such 
 collector, who shall issue any stamp or stamps indicating 
 the payment of any internal revenue tax, before pay- 
 ment in full therefor has been made to the officer or per- 
 peraity. soH issuing the same, shall be deemed guilty of a misde- 
 meanor, and shall be fined for each stamp thus issued an 
 amount equal to the face value thereof, in addition to 
 the liability of the collector on his official bond on ac- 
 ^ count of such stamp; and such collector, deputy collec- 
 
 tor, or employee shall be dismissed from office. 
 
 Issuing stamps for distilled spirits to any other person 
 than as provided by law. (Sec. 3316, p. 270.) 
 
 Receipt in lieu of stamp prohibited. (Sec. 3183, p. 115.) 
 Deputy collectors to give personal receipts for collec- 
 tions made by them. (T. D. 2341.) 
 
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OFFICERS OF INTERNAL REVENUE. 101 
 
 Sec. 23. [Act of Fehnary 5, 1876 (18 Stat., 307).]., Application ot 
 That all acts and parts of acts imposing fines, penalties, pSnTshin™rTn 
 or other punishment for offenses committed by an in- offlce^'to'certain 
 ternal-revenne officer or other officer of the Department "ti"" classes of 
 of the Treasury of the United States, or under any p"'°"^- 
 bureau thereof, shall be, and are hereby, applied to all 
 persons Avhomsoever, employed, appointed, or acting 
 under the authority of any internal-revenue or customs 
 law, or any revenue provision of any law of the United 
 States, when such persons are designated or acting as 
 officers pr deputies, or persons having the custody or 
 disposition of any public money. 
 
 Sec. 3170. Every district attorney or marshal who de- District attor- 
 niands, or accepts, or attem.pts to collect, directly or ScceptTngT'de- 
 indirectly, as payment or gift or otherwise, any sum of manding a n y - 
 
 ■ .1 "^ . °ji 1 (■ n •' • thing for com- 
 
 money or other property ot value for the compromise, promise of vioia- 
 adjustment, or settlement of any charge or complaint revenue lawl.™'" 
 for any violation or alleged violation of any provision of 
 the internal-revenue laws, except as expressly authorized 
 by law to do so, shall be held to be guilty of a misde- 
 meanor, and shall be fined in double the sum or value of 
 the money or property received or demanded, and be 
 imprisoned for not less than one nor more than ten 
 years. 
 
 Accepting illegal fees, etc. (Sec. 18, act of May 28, 
 1896, 29 Stat., 140.) 
 
 Sec. 3171. {Amended hy sec. ^, act of March i, 1879 (20 ■^^^^i:^^^l:, 
 Stat., 327). '\ If any officer appointed under and by virtue maintain suit for 
 of any act to provide internal revenue, or any person ''*'"^=^^- 
 acting under or by authority of any such officer, shall 
 receive any injury to his person or property, in the dis- 
 charge of his duty, under any law of the United States 
 for the collection of taxes, he shall be entitled to main- 
 tain suit for damage therefor, in the circuit court of the 
 United States, in the district wherein the party doing 
 the injury may reside or shall be found. 
 
 Indictment alleging killing by defendants of revenue offi- 
 cers engaged in search for distilled spirits ; indictment for 
 conspiracy and murder under R. S. 5508, 5509. (United 
 States V. Patrick, 54 Fed. 338.) , 
 
 Penalties for obstructing officers. (Sees. 317T, p. 110; 
 3276, p. 225 ; sees. 65 and 140, Criminal Code, act March 4, 
 1909, 35 Stat., 1088, p. 674.) 
 
 For rescuing prisoners or property. (Sec. 3177, p. 110; 
 sees. 71 and 143, act of March 4, 1909, pp. 674, 675.) 
 
 Conspiracy to prevent persons from accepting office. (Sec. 
 5518 ; sec. 21, act March 4, 1909, p. 677.) 
 
 Penalty for falsely assuming to be an officer. (Sec. 
 5448, act of April 18, 1884 ; reproduced in sec. 32, Criminal 
 Code, act March 4, 1^09; 35 Stat, 1088, p. 675.) 
 
 Sec. 1301 (d). [Act of February U, 1919 (1,0 Stat., ^^f-^'^^J^-. 
 1057).] (1) There is hereby created a board to be known membership ; 
 as the "Advisory Tax Board," hereinafter called the Irnci"" °"" 
 Board, and to be composed of not to exceed six members 
 
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102 OFFICERS OF INTERNAL REVENUE. 
 
 to be appointed by the Commissioner with the approval 
 of the Secretary. The Board shall cease to exist at the 
 expiration of two years after the passage of this Act, or 
 at such earlier time as the Commissioner with the ap- 
 proval of the Secretary may designate. 
 Vacancies and Vacancies in the membership of the Board shall be 
 l^^°''expen!et'^ filled in the same manner as an original appointment. 
 Any member shall be subject to removal by the Commis- 
 sioner with the approval of the Secretary. The Commis- 
 sioner with the approval of the Secretary shall designate 
 the chairman of the Board. Each member shall receive 
 an annual salary of $9,000, payable monthly, together 
 with actual necessary expenses when absent from the 
 District of Columbia on official business. 
 Submission of (2) The Commissioner may, and on the request of any 
 Co mm listener ^ taxpayer directly interested shall, submit to the Board any 
 findings an d question relating to the interpretation or administration 
 
 recommenda- ■'j. ,, . = Hj. '■ Ci. a. i i 
 
 tions. 01 the income, war-pronts or excess-prohts tax laws, and 
 
 the Board shall report its findings and recommendations 
 to the Commissioner. 
 , Office; audit, (3) The Board shall have its office in the Bureau of 
 salaries 'and'' "ex- Internal Rcveuue in the District of Columbia. The ex- 
 penses, penses and salaries of members of the Board shall be 
 audited, allowed, and paid out of appropriations for 
 collecting internal revenue, in the same manner as ex- 
 penses and salaries of employees of the Bureau of Internal 
 Revenue are audited, allowed, and x^aid. 
 Witnesses and (4) The Board shall have the power to summon wit- 
 cvidence. ncsscs, take testimony, administer oaths, and to require 
 any person to produce books, papers, documents, or other 
 data relating to any matter under investigation by the 
 Board. Any member of the Board may sign subpoenas 
 and members and employees of the Bureau of Internal 
 Revenue designated to assist the Board, when authorized 
 by the Board, may administer oaths, examine Avitnesses, 
 take testimony and receive evidence. 
 
 The Advisory Tax Board was dissolved by tlie Commis- 
 sioner of Internal Revenue, with the approval of the Secre- 
 tary of the Treasury, at close of business September 30, 1919. 
 
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Chaptee Two. 
 ASSESSMENTS AND COLLECTIONS. 
 
 Sec. 
 
 3172 (amended). Canvass of districts 
 
 for objects of taxation. 
 
 3173 (amended). Returns of persons 
 
 liable to tax. 
 
 3174. Summons. 
 
 3175. Failure to obey summons ; pro- 
 
 ceedings. 
 
 3176 (amended). When collector may 
 enter premises and make re- 
 turns. One hundred per cent 
 penalty ; 50 per cent penalty. 
 
 131S. Act of February 24, 1919. Jur- 
 isdiction of district courts. 
 
 3177. Officers may enter premises 
 
 where taxable articles are 
 kept. Obstructing officers ; 
 penalty. 
 
 3178. (Obsolete.) 
 
 3179. Making false returns, or failing 
 
 to obey summons; penalty.^ 
 
 3180. Taxable property owned by non- 
 
 residents. 
 
 3181. Lists or returns. 
 
 3182. Commissioner to make assess- 
 
 ments ; correction of incom- 
 plete or imperfect lists within 
 15 months. 
 3183 (amended). Duty of collectors to 
 collect taxes ; not to issue re- 
 ceipts In lieu of stamps. 
 37. Act of August 28, 1894. Receipts 
 to be given upon payment of 
 tax; separate receipts to be 
 given in certain cases. 
 
 3184. Notice and demand of taxes. , 
 
 3185. Returns ; when tax payable ; 5 
 
 per cent penalty and interest. 
 3186 (amended). Lien for taxes. 
 
 3187. Distraint. 
 
 3188. Mode of levying distraint. 
 
 3189. Delinquents must exhibit evi- 
 
 dence relating to property dis- 
 trained. 
 
 3190. Proceedings on distraint. 
 
 3191. When property sold under dis- 
 
 traint is subject to tax, and tax 
 not paid. 
 
 3192. When property sold under dis- 
 
 traint may be purchased for 
 United States, etc. 
 
 3193. Property distrained to be re- 
 
 stored on payment before sale. 
 
 Sec. 
 
 3194. Effect of certificate of sale. 
 
 3195. When property distrained is not 
 
 divisible. 
 
 3196. When real estate may be sold to 
 
 satisfy taxes. 
 3197 (amended). Proceedings for seiz- 
 ure and sale of real estate. 
 1-3. Act March 3, 1893. Regulating 
 the manner in which personal 
 or real property may be sold 
 under orders and decrees of 
 sale. 
 
 3198. Certificate of purchase ; deed. 
 
 3199. Collector's deed prima facie evi- 
 
 dence, etc. 
 
 3200. Collector may seize lands of de- 
 
 linquent in any district of same 
 State. 
 
 3201. Redemption prior to sale. 
 
 3202. Redemption after sale. 
 3203 < amended). Record of sales. 
 
 3204. Redemptions to be entered on 
 
 record. 
 
 3205. Successive seizures may be made, 
 
 when. 
 
 3206. Fees and charges in seizure 
 
 cases. 
 
 3207. Proceedings in chancery to sub- 
 
 ject real estate to payment of 
 tax. 
 3208 (amended). Commissioner to have 
 charge of real estate acquired 
 under internal-revenue laws. 
 
 3209. When Ust to be sent to district 
 
 wrhere the party taxed resides 
 or has property. 
 
 3210. Collections to be paid into Treas- 
 
 ury daily. 
 1. Act of May 10, 1916. Same. 
 1. Act of May 27, 1908. Collectors 
 
 to render accounts quarterly. 
 
 3211. Depositories. 
 
 Act of March 2, 1911. Certified 
 checks receivable for taxes. 
 
 Act of March 3, 1913. Authority 
 to receive certified checks ex- 
 tended. 
 1010. Act of October 3, 1917. Cer- 
 tificates of indebtedness and 
 uncertifleil checks receivable 
 for income and excess profits 
 taxes. 
 
 103 
 
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104 
 
 ASSESSMENTS AND COLLECTIONS. 
 
 (anieudiKl). Taxes on spirits ac- 
 cidentally destroyed. 
 
 Retrospective effect of preceding 
 
 section, 
 (amended). When tax on lost 
 spirits is indemnified by insur- 
 ance. 
 
 Suits to restrain assessment or 
 collection of taxes prohibited. 
 
 (amended ) . Suits to recover taxes 
 collected under second assess- 
 ment ; burden of proof as to 
 fraud, etc. 
 
 Suits for recovery of taxes 
 wrongfully collected. 
 
 Limitation of suits for recovery 
 of taxes wrongfully collected. 
 
 Claims for refunding ; limitation. 
 
 Compromises. 
 
 Discontinuances of certain prose- 
 cutions. 
 
 Continuances of cases. 
 
 Sec. See. 
 
 1314. Act of February 24, 1919. Cer- 3221 
 
 tificates of indebtedness and 
 
 uncertified checks receivable 3222. 
 
 for taxes jsayable other than 
 
 by stamp. 3223 
 
 3212. Collectors' monthly statement ; 
 
 3213. Suits for fines, penalties, forfeit- 3224. 
 
 ures, and taxes. 
 
 3214. Suits for taxes, etc., not to be 3225 
 
 brought without sanction of 
 Commissioner. 
 323 5. Regulations for government of 
 
 district attorneys, marshals, 3226. 
 etc. 
 
 3216. Moneys recovered to be paid to 3227. 
 
 collectors. 
 
 3217. Delinquent collectors; proceed- 3228. 
 
 ings by distraint. 3229. 
 
 3218. Collectors to be charged with 3230. 
 
 what ; due diligence. 
 
 3219. Death, etc., of collector; uncol- 3231. 
 
 lected balances. 
 3220 (amended). Remission and re- 
 funding of taxes, penalties, 
 etc. 
 
 trias"te'objeits Sec. 3172. [Amended hy sec. 3i, act of August 27, 1894 
 of taxation. [28 Stat., 609) / reeuacted hy sec. 16, act of September 8, 
 1916 (39 Stat., 156), and ly sec. 1317, act of Fehmary 2^, 
 1919 (40 Stat., 1057).'] Every collector shall, from time 
 to time, cause his deputies to proceed through every part 
 of his district and inquire after and concerning all per- 
 sons therein v?ho are liable to pay any internal revenue 
 tax, and all persons owning or having the care and man- 
 agement of any objects liable to pay any tax, and to make 
 a list of such persons and enumerate said objects. 
 
 The list referred to should be on Form 24 and should con- 
 tain nothing but taxes which should be reported for assess- 
 ment. The report of the deputy should be made so as to 
 reach the collector on or before the 5th day of the month 
 succeeding that for which the report is made. (Regulations 
 No. 1, revised, p. 9.) 
 
 Monthly visits of deputv to be discontinued. (T. D. 
 2236.) 
 
 For requirements as to collectors' monthly or special 
 assessment lists, see Sec. 3184, R. S. 
 
 Instructions to collectors with reference to special-tax 
 returns. (Circular No. 561, June 18, 1907; T. D. 92.) 
 
 For methods employed in ascertaining names of persons 
 liable to pay special taxes as rectifiers, wholesale liquor 
 dealers, and retail liquor dealers, see T. D. 1782. 
 
 Sec. 3173. [Amended hy sec. S4, act of August 27, 1894 
 (28 Stat., 509) , sec. 16, act of Septemher 8, 1916 (39 Stat., 
 756) , and sec. 1317, act of February 24, 1919 (40 Stat., 
 1057).'] It shall be the duty of any person, partnership, 
 firm, association, or corporation, made liable to any duty, 
 special tax, or other tax imposed by law, when not other- 
 wise provided for, (1) in case of a special tax, on or be- 
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ASSESSMENTS AND COLLECTIONS. 105 
 
 fore the thirty-first day of July in each year, and (2) in 
 other cases before the day on which the taxes accrue, to 
 make a list or return, verified by oath, to the collector or a Ammai and 
 deputy collector of the district where located, of the wLVto be madl". 
 articles or objects, including the quantity of goods, wares, fil^^"- ^"^' p- 
 and merchandise, made or sold and charged with a tax, 
 the several rates and aggregate am.ount, according to the 
 forms and regulations to be prescribed by the Commis- 
 sioner of Internal Revenue, with the approval of the 
 Secretary of the Treasury, for which such person, part- 
 nership, firm, association, or corporation is liable: Pro- 
 vided, That if any person liable to pay any duty or tax, 
 or owning, possessing, or having the care or management 
 of property, goods, wares, and merchandise, article or 
 objects liable to pay any duty, tax, or license, shall fail 
 to make and exhibit a list or return required by law, but 
 shall consent to disclose the particulars of any and all 
 the property, goods, wares, and merchandise, articles, 
 and objects liable to pay any duty or tax, or any business 
 or occupation liable to pay any tax as aforesaid, then, 
 and in that case, it shall be the duty of the collector or 
 deputy collector to make such list or return, which, being when returns 
 distinctly read, consented to, and signed and verified by ™eputy " ^ntctor 
 oath by the person so owning, possessing, or having the or collector. 
 care and management as aforesaid, may be received as the 
 list of such person: Provided further, That in case no 
 annual list or return has been rendered by such person to 
 the collector or deputy- collector as required by law, and 
 the person shall be absent from his or her residence or proceedings in 
 place of business at the time the collector or a deputy case of absence. 
 collector shall call for the annual list or return, it shall 
 be the duty of such collector or deputy collector to leave 
 at such place of residence or business, with some one of 
 suitable age and discretion, if such be present, otherwise 
 to deposit in the nearest post office, a note or memorandum 
 addressed to such j^erson, requiring him or her to render 
 to such collector or deputy collector the list or return 
 required by law within ten days from the date of such 
 note or memorandum, verified by oath. And if any per- 
 son, on being notified or required as aforesaid, shall re- 
 fuse or neglect to render such list or return within the Cases of neg- 
 time required as aforesaid, or whenever any person who j^|' jaLe^turM; 
 is required to deliver a monthly or other return of objects 
 subject to tax fails to do so at the time required, or de- 
 livers any return which, in the opinion of the collector, 
 is erroneous, false, or fraudulent, or contains any under- 
 valuation or understatement, or refuses to allow any 
 regularly authorized Government officer to examine the 
 books of such person, firm, or corporation, it shall be law- 
 ful for the collector to summon such person, or any other 
 person having possession, custody, or care of books of 
 account containing entries relating to the business of 
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106 ASSESSMENTS AND COLLECTIONS. 
 
 such person or any other person he may deem proper, to 
 appear before him and produce such books at a time 
 and place named in the summons, and to give testimony 
 or answer interrogatories, under oath, respecting any 
 objects or income liable to tax or the returns thereof. The 
 prod™b"ooks collector may summon any person residing or found with- 
 and testify. in the State or Territory in which his district lies ; and 
 when the person intended to be summoned does not reside 
 and can not be found within such State or Territory, he 
 may enter any collection district where such person may 
 be found and there make the examination herein au- 
 thorized. And to this end he may there exercise all the 
 authority which he might lawfully exercise in the district 
 for Avhich he was commissioned: Provided^ That "per- 
 son," as used in this section, shall be construed to include 
 any corporation, joint-stock company or association, or 
 insurance company when such construction is necessary 
 to carry out its provisions. 
 
 See section 23, act of October 22, 1914; sections 18, 19, 
 act of September 8, 1916; sections 1002, 1004, act of Oc- 
 tober 3, 1917. 
 
 Returns of taxes assessable under internal-revenue laws 
 to be made in duplicate. (Cir. No. 140, Int. Rev. No. 548; 
 T. D. 21801.) 
 
 The returns (Form 11, revised) of special taxpayers 
 must be made under oatb or affirmation, whether covering 
 the whole year or a fractional part of the year. (26 Int. 
 Rev. Rec, 69, 89; T. D. 1782.) 
 
 A person intending to engage in business for which 
 special tax is required not required to himself sign and 
 swear to the return (Form 11) ; such form may be exe- 
 cuted by an agent holding a duly executed power of at- 
 torney. (Regulations No. 1, revised November, 1917, p. 
 11; T. D. 49 amended.) 
 
 Return on Form 11 in- the case of an unincorporated 
 club, association, or copartnership may be signed and 
 verified by a responsible or managing officer or member of 
 the firm. (T. D. 1552.) 
 
 A written request by a person liable to a special tax for 
 information concerning such tax is not a disclosure of the 
 particulars within the meaning of this section. (VI Comp. 
 Dec, 760.) 
 . Request for prescribed blanks for making return is a 
 
 disclosure. (VIII Comp. Dec, 663.) 
 
 This section clothes collectors of internal revenue with 
 supervisory power over and authorizes them to investi- 
 gate all accounts, lists, or returns made or required to be 
 made to them by any and all classes of persons liable to 
 pay taxes upon any property, trade, or business. (United 
 States V. Hodson, 14 Int. Rev. Rec, 100; Fed. Cas. No. 
 15376.) 
 
 The collector i.s not authorized to require the produc- 
 tion of the books of a corporation in which the taxpayer 
 is a shareholder, such books in the meaning of that pro- 
 vision not being books relating to the trade or business of 
 the shareholder. (Lee, assessor, v. Chadwick, 11 Int. 
 Rev. Rec, 133 ; 1 Lowell, 439 ; Fed. Cas. No. 2.570. ) 
 
 After the right of assessment has been lost a collector 
 has no legal authority to require the production of a 
 person's private books and papers for the purpose of 
 ascertaining his liability to tax. (In the matter of O. H. 
 
 Digitized by Microsoft® 
 
ASSESSMENTS AND COLLECTIONS. 107 
 
 P. Ai-cher, 24 Int. Rev. Rec, 110; 9 Ben., 427; Fed. Cas. 
 No. 506.) 
 
 It was held that it is no defense that the answers of 
 the person summoned would tend to criminate him. (In 
 re Phillips, 10 Int. Rev. Rec, 107; Fed. Cas. No. 11098.) 
 
 The examination of books under this section is not an 
 infringement of the Constitution. (In re Strouse, 11 Int. 
 Rev. Rec, 182; 1 Sawyer, 605; Fed. Cas. No. 13548.) 
 
 Summons to produce books and attachment by court for 
 refusal. (Lippman's case, 3 Ben., 96; 9 Int. Rev. Rec, 1; 
 Landiam r. United States, 16 Ct. Cls., 74, 85 ; In re Brown, 
 3 Int. Rev. Rec, 134; Fed. Cas. No. 1977.) 
 
 Order to produce books is not violative of any constitu- 
 tional right. (Calkins v. Smietanka, 240 Fed., 146.) 
 
 Meaning of the words " objects charged with internal- 
 revenue tax." (Wells, Fargo and Co. v. Shook, 8 Blatch., 
 254; Fed. Cas. No. 17406; In re Kinney, 102 Fed., 468.) 
 
 The decision in Boyd v. United States, 116 U. S., 617, 
 32 Int. Rev. Rec, 62, was, in efEect, that a compulsory 
 production of a man's private papers, to be used as evi- 
 dence against him in a proceeding to forfeit his property 
 for alleged fraud against the revenue laws, is an " unrea- 
 sonable search and seizure " within the meaning of the 
 fourth amendment of the Constitution. 
 
 Summons to produce books. (T. D. 993.) 
 
 See act of June 22, 1874, relative to production of books, 
 papers, etc., in suits other than criminal, page 644, Ap- 
 pendix. 
 
 Unreasonable searches and seizures ; seizure of corre- 
 spondence. (T. D. 1964.) 
 
 Sec. 3174. Such summons shall in all cases be served summons, form 
 by a deputy collector of the district where the person tm-ic^l^"^' "' 
 to whom it is directed may be found, by an attested copy 
 delivered to such person in hand, or left at his last and 
 usual place of abode, allowing such person one day for 
 each twenty-five miles he may be required to travel, com- 
 puted from the place of service to the place of examina- 
 tion; and the certificate of service signed by such deputy 
 shall be evidence of the facts it states on the hearing of 
 an application for an attachment. When the summons 
 requires the production of books, it shall be sufficient 
 if siich books are described with reasonable certainty. 
 
 In re Becker, Fed. Cas. No. 120S ; 21 Int. Rev. Rec, 243. 
 
 Sec. 3175. Whenever any person summoned under the Failure to obey 
 two preceding sections neglects or refuses to obey such ™^^™/' ^jj "^ ° " 
 summons, or to give testimony, or to answer interroga- 
 tories as required, the collectors may apply to the judge 
 .of the district court or to a commissioner of the circuit 
 court of the United States for the district within which 
 the person so summoned resides for an attachment 
 against him as for a contempt. It shall be the duty of 
 the judge or commissioner to hear the application, and, 
 if satisfactory proof is made, to issue an attachment, 
 directed to some proper officer, for the arrest of such 
 person, and upon his being brought before him to pro- 
 ceed to a hearing of the case ; and upon such hearing the 
 judge or commissioner shall have power to make such 
 order as he shall deem proper not inconsistent with 
 
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108 ASSESSMENTS AND COLLECTIONS. 
 
 existing la-u-s for the punishment of contempts, to enforce 
 obedience to the requirements of the summons and to 
 punish such person for his default or disobedience. 
 
 Penalty for failure to obey summons. (Sec. 3179, p. 111.) 
 The judge may Issue a rule to Show cause why an at- 
 tachment should not issue. 'The application of the col- 
 lector in these cases is a proceeding in a civil cause, and 
 may be amended. (Lee, assessor, v. Chadwick, 11 Int. 
 Rev. Rec, 133; Fed. Cas. No. 2570.) 
 
 In the matter of Oliver H. P. Archer, Judge Blatchford 
 denied a collector's application for a writ of attachment, 
 as the Commissioner was barred by the 15 months' limita- 
 tion in section 3182 from assessing. (24 Int. Rev. Rec, 
 110; 9 Ben., 427; Fed. Cas. No. 506.) 
 
 Sec. 3176. [Amended iy sec. 3^, act of August 27, 
 
 1894. {^8 Stat., 509), sec. II (/), act of Octoler 3, 1913 
 
 {38 Stat., lU, 177), sec. 16, act of September 8, 1916 {39 
 
 Stat., 756), and sec. 1317, act of February 2^, 1919 {Jfi 
 
 Proceedings Stat., 1057).'] If any person, corporation, company, or as- 
 
 i^fiild™ "*"'^" sociation fails to make and file a return or list at the time 
 prescribed by law or by regulation made under aiithority 
 of law, or makes, willfully or otherwise, a false or fraudu- 
 lent return or list, the collector or deputy collector shall 
 make the return or list from his own knowledge and 
 from such information as he can obtain through testi- 
 mony or otherwise. In any such case the Commissioner 
 may, from his own knowledge and from such informa- 
 tion as he can obtain through testimony or otherwise, 
 make a return or amend any return made by a collector 
 or deputy collector. Any return or list so made and sub- 
 scribed by the Commissioner, or by a collector or deputy 
 collector and approved by the Commissioner, shall be 
 Extension f prima facie good and sufficient for all legal purposes. 
 
 t™s- If the failure to file a return or list is due to sickness or 
 
 absence, the collector may allow such further time, not 
 exceeding thirty days, for making and filing the return 
 or list as he deems proper. 
 
 The Commissioner of Internal Revenue shall deter- 
 mine and assess all taxes, other than stamp taxes, as to 
 which returns or lists are so made under the provisions 
 of this section. In case of any failure to make and file a 
 return or list within the time prescribed by law, or pre- 
 
 perait ^ " ' "°* scribed by the Commissioner of Internal Revenue or the 
 
 ^"'■^ "' collector in pursuance of law, the Commissioner of In- 
 
 ternal Revenue shall add to the tax 25 per centum of its 
 amount, except that when a return is filed after such 
 time and it is shown that the failure to file it was due to 
 a reasonable cause and not to willful neglect, no such 
 addition shall be made to the tax. In case a false or 
 fraudulent return or list is willfully made, the Commis- 
 enait"" <^™*sioner of Internal Revenue shall add to the tax 50 per 
 
 ■""^ ^' centum of its amount. 
 
 When penal- The amouut SO added to any tax shall be collected at 
 
 ties collectible, .i .• i ■ xi i , i, 
 
 the same time and m the same manner and as part of 
 Digitized by Microsoft® 
 
ASSESSMENTS AND COLLECTIONS. 109 
 
 the tax unless the tax has been paid before the discovery 
 of the neglect, falsity, or fraud, in which case the amount 
 so added shall be collected in the same manner as tho 
 tax. 
 
 Affidavits to tax return. (T. D. 2174.) 
 
 The 100 per cent penalty applies to the full amount of 
 tax involved. (T. D. 2266.) 
 
 The 50 per cent penalty does not accrue if return is 
 placed in the mails in time, properly addressed and post- 
 age paid. (T. D. 424.) 
 
 The 50 per cent additional is a penalty. (17 Op. Atty. 
 Gen., 433; 23 Id., 399; T. D. 19246.) A penal duty. (11 
 Op. Atty. Gen., 280.) 
 
 No penalty accrues where parties consent to disclose their 
 liability to special tax within the calendar month. (T. D. 
 239; revoked by T. D. 2260; 6 Comp. Dec, 686.) 
 
 The absence contemplated by section 3176 as relieving a 
 special-tax payer from the 50 per cent additional is tem- 
 porary, not continuous, absence. (T. D. 891.) 
 
 Assessable penalties for failing to malie return or for 
 making a wilfully false return. See regulations No. 1, re- 
 vised. 
 
 Interpretation of the words " false or fraudulent intent." 
 (Eliot National Bank v. Gill, 218 Fed., 600; T. D. 2121.) i 
 
 Kalse returns. (National Bank of Commerce v. Allen, 
 223 Fed., 472; T. D. 2198; 211 Fed., 743; T. D. 1991.) 
 
 False return in the absence of any intention to mislead 
 not a fraudulent one. (Eliot National Bank v. Gill, 210 
 Fed., 933; T. D. 1936.) M 
 
 The word " false," when used in the statute, means un- 
 true or incorrect, and does not necessarily mean intention- 
 ally or fraudulently false. (United States v. Nashville, 
 Chattanooga and St. Louis Ry. ; 249 Fed., 678 ; T. D. 2697.) 
 
 As to the term "false," meaning wilfully false (German 
 Savings Bank v. Archbold, 15 Blatch., 398, 24 Int. Rev. Rec, 
 414) ; Supreme Court Decision (28 Int. Rev. Rec, 175; 104 
 U. S. (14 Otto), 70S). The court did not hold that the re- 
 turn must be wilfully false, but intimated tliat such would 
 have been its decision if it had been necessary to pass upon 
 the question in the case decided. • 
 
 As to 100 per cent penal duty. (11 Op. Atty. Gen., 280.) 
 
 In ease of neglect or refusal to make returns, in case of 
 false or fraudulent ones, and in case of returns in which 
 there is any omission or understatement, collectors will pro- 
 ceed as provided in section 3176. (34 Int. Rev. Rec, 98.) 
 
 The act which imposes an addition of 100 per cent to the 
 tax as a penalty for the " return of a false or fraudulent 
 list or valuation " is constitutional. (Doll r. Evans, 15 Int. 
 Rev. Rec, 143.) 
 
 As to authority of Secretary to remit the 50 per cent ad- 
 dition. (17 Op. Atty. Gen., 433; 23 Id., 398.) 
 
 Reporting delinquent special-tax payers for assessment. 
 (See note under sec 3238, p. 156.) 
 
 Course to be pursued by collectors where no return is 
 filed. (T. D. 1.560.) 
 
 Section does not take away from Commissioner powers 
 given by statute to assess tax on sales of grain, on memo- 
 randa of which stamps were not affixed. (Calkins v, 
 Smietanka, 240 Fed. 138.) 
 
 Penalty for failure to make return of income tax. Sec. 
 18, act of September 8, 1916, amended by sec. 1209, act i^f 
 October 3, 1917. 
 
 Penalty for failure to make return i-equired by the act 
 of October 3, 1917, or regulations thereunder. Sec 1004, 
 
 act of October 3, i9^igjtized by Microsoft® 
 
110 ASSESSMENTS AND COLLECTIONS. 
 
 diswif courts."^ Sec. 1318. [Act of Fehruary H, 1919 (jO Stat, 1057) .] 
 That if any person is summoned under this Act to appear 
 to testify, or to produce books, papers or other data, the 
 district court of the United States for the district in 
 which such person resides shall have jurisdiction by ap- 
 propriate process to compel such attendance, testimony, 
 or production of books, papers, or other data. 
 
 Where delinquency in filing admissions tax return was 
 due to fact that head bookkeeper on reports, etc., liad en- 
 listed in United States Navy and it was impossible for tax- 
 payer to make return on time with substitute help, there 
 was a reasonable cause for delinquency within the mean- 
 ing of this section. (T. D. 2795.) 
 
 n t e'^rpreSites Sec. 3177. Any coUector, deputy collector, or inspector 
 lt\lt ^^Tvllt^ ^'^^y enter, in the daytime, any building or place where 
 any articles or objects subject to tax are made, produced, 
 or kept, within his district, so far as it may be necessary 
 for the purpose of examining said articles or objects. 
 And any owner of such building or place, or person hav- 
 ing the agency or superintendence of the same, who re- 
 fuses to admit such officer, or to suffer him to examine 
 such article or articles, shall, for every such refusal, for- 
 feit five hundred dollars. And when such premises are 
 open at night, such officers may enter them while so open, 
 flcfrs.'"' EeicSing i^ ^^^^ performance of their official duties. And if any 
 p™p"t5- Pen- person sliall forcibly obstruct or hinder any collector, 
 ^' deputy collector, or inspector, in the execution of any 
 
 power and authority vested in liim by law, or shall for- 
 cibly rescue or cause to be rescued any property, articles, 
 or objects after the same shall have been seized by him, 
 or shall attempt or endeavor so to do, the person so offend- 
 ing, excepting in cases otherwise provided for, shall, for 
 every such offense, forfeit and pay the sum of five hun- 
 dren dollars, or double the value of the property so res- 
 cued, or be imprisoned for a term not exceeding two 
 years, at the discretion of the court. 
 
 This section is made applicable to revenue agents by 
 section 3152 as amended (p. 81). 
 
 Seized property irrepleviable. (Sec. 934, p. 656.) 
 
 Whosoever sliall forcibly assault, resist, or interfere with 
 any officer of internal revenue, or his deputy, or any per- 
 son assisting him in his duties, or shall rescue, or attempt 
 to rescue, or cause to be rescued, property seized, is liable 
 to a fine of not more than .$2,000, or imprisonment, or both. 
 ( Sec. 65, Criminal Code, Appendix, p. 674. ) 
 
 Distiller or person in his employ obstructing officer. 
 (Sec. 3276, p. 225.) Wholesale liquor dealer or rectifier 
 hindering revenue officer from examining book. ( Sec. 3318, 
 p. 272.) 
 
 Search warrants. ( Sec. 3462, p. 601. ) 
 
 The right conferred by section 3177 is limited to the 
 purpose described. (United States r. Mann, 95 U. S. (5 
 Otto), 580; 24 Int. Rev. Rec, 20.) 
 
 Officers must have free 'and peaceable egress as well as 
 ingress to the places where they are authorized to make 
 examination, and the proprietors have no right to eject 
 them. (United States v. Mosely, 15 Int. Rev. Rec, 8; Fed. 
 
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ASSESSMENTS AND COLLECTIONS. Ill 
 
 The authority a£ sucli officers to make examinations can 
 not be delegated to their clerks. (United States v. Illiawn, 
 22 Int. Hev. Rec, 235; Fed. Cas. No. 16150.) 
 
 Indictments under this section. (United States v. Ford, 
 34 Fed., 26.) 
 
 United States v. Fears <3 Woods, 510; Fed. Cas. No. 
 15080). (Indictment defective in not showing the authority 
 under which the officer was acting.) 
 
 Section 3177 applies to cases arising under the oleomar- 
 garine act. (United States re. Barnes, 222 U. S., 513 ; T. D. 
 1751.) 
 
 Action against a collector and deputies for damages on 
 account of an alleged unlawinl search. (Kereheval v. 
 ABen, 220 Fed., 262.) 
 
 Evidence discovered, although " illegally " obtained, may 
 be competent. (Hartman and Hartman v. United States, 
 T. D. 1468.) 
 
 Sec. 3178. [Reqmres returns to show tchether amounts 
 are umLued m com or currency.'] 
 
 Altbough the provision is not expressly repeated, it has 
 been obsoletejtfince the resumption of specie payments, 
 January 1, 1879. 
 
 Sec. 3179. Whenever any person delivers or discloses retar*n'"or m^"- 
 to the collector or deputy any false or fraudulent list,iecting to obey 
 return, account, or statement, with intent to defeat OFait^""^' '''°' 
 evade the valuation, enumeration, ot assessment intended 
 to be made, or, being duly summoned to appear to testify, 
 or to appear and produce such books as aforesaid, neg- 
 lects to appear .or "to produce said books, he shall be fined 
 not exceeding one thousand dollars, or be imprisoned not 
 exceeding one year, or both, at the discretion of the 
 court, witii costs of prosecution. 
 
 United States v. McGinnis and Mountjoy, 1 Abb. U. S., 
 120; 3 Int. Bev, Rec, 159. 
 
 Sec. 3180. Whenever there are in any district any e,t^*^owned'™b' 
 articles not owned or possessed by or under the care or nonresidents. 
 control of any person within such district, and liable to be 
 taxed, and of which no list has been transmitted to the 
 collector, as required by law, the collector or one of his 
 deputies sliall enter the premises where such articles are 
 situated and shall take such view thereof as may be neces- 
 sary, and make lists of the same, according to the form 
 prescribed. Said lists, being subscribed by such collector 
 or deputy, shall be taken as sufficient lists of such articles 
 for all purposes. 
 
 Sec. 3181. The lists or returns aforesaid shall, Where Lists, when 
 not otherwise especially provided for, be taken with refer- denominated.'""' 
 ence to the day fixed for that purpose by this Title as 
 aforesaid ; and where duties accrue at other and different 
 times, the list shall be taken with reference to the time 
 when said taxes become due, and ;shall be denominated ^^Art Feb. is, 
 annual, monthly, and special lists or returns. 
 
 There is now no annual list. Tliere has been no list de- 
 nominated annual since the act abolishing assessors and 
 requirlHg specialtaxes to be paid by stamps. (Act Decem- 
 
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 ber 24, 1872, 17 Stat., 401,). 
 DlQIW 
 
112 ASSESSMENTS AND COLLECTIONS. 
 
 Instructions regarding preparation of assessment lists of 
 various objects subject to tax. ( Jlimeograpli letter 1728, 
 January 15, 1918.) 
 
 to'^mTi™'a=ses" ®^'^- ^^^^- The Commissioner of Internal Eevemie is 
 ments. correc- hereby authorizcd and required to make the inquiries, 
 piete OT impS- determinations, and assessments of all taxes and pen- 
 flfteen '^momhs'"'" ^^ties imposed by this Title, or accruing under any former 
 internal-revenue act, ■where such taxes had not been duly 
 paid by stamp at the time and in the manner provided by 
 law, and shall certify a list of such assessments when 
 made to the proper collector^ respectively, who shall 
 proceed to collect and account for the taxes and penalties 
 so certified. Whenever it is ascertained that any list 
 which has been or shall be delivered to any collector, is 
 imjDerfect or incomplete in consequence of the omission 
 of the name of any person liable to tax, or in consequence 
 of any omission, or understatement, or undervaluation, 
 or false or fraudulent statement contained in any return 
 made by any person liable to tax, the Commissioner of 
 Internal Revenue may, at any time within fifteen months 
 from the time of the delivery of the list to the collector as 
 aforesaid, enter on any monthly or special list the name of 
 ■ such person so omitted, together with the amount of tax 
 for which he may have been or shall become liable, and 
 also the name of any such person in respect to whose 
 return, as aforesaid, there has been or shall be any omis- 
 sion, undervaluation, understatement, or false or fraudu- 
 lent statement, together with the amount for which such 
 person may be liable, above the amount for which he 
 may have been or shall be assessed upon any return made 
 as aforesaid ; and he shall certify and return such list to 
 the collector as required by law. And all provisions of 
 law for the ascertainment of liability to any tax, or the 
 assessment or collection thereof, shall be held to apply, 
 so far as may be necessary, to the proceedings herein 
 authorized and directed. 
 
 Assessors abolished. (Act December 24, 1872, 17 Stat., 
 401.) 
 
 April list, 1873, was the last li.st made by assessors. 
 (Special No. 128.) 
 
 The authority to make assessments of taxes due is limited 
 to the 15 months next succeeding the delivery to the col- 
 lector of the list upon which the assessment might have been 
 made, but from which it was omitted, except in cases where 
 It is otherwise provided. (Regulations Xo. 1, revised, 
 p. 152.) 
 
 Assessment can not be made of part of a special-tax 
 liability. When the list on which a special tax should have 
 first been assessed (but from which the same was omitted) 
 has been delivered to a collector for a period of more than 
 15 months, the .special tax incurred becomes unassessable. 
 (T. D. 1364.) 
 
 Reassessment within 15 months. (Bandelet v. Smith, 
 18 Wall., 642; Barker v. White, 19 Int. Rev. Rec, 117; 
 11 Blatch., 445; Fed. Cas., No. 996; Daniels v. Tarbox, 9 
 Blatch., 176; Fed. Cas., No. 3568; Bergdoll v. Pollock, 95 
 
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ASSESSMEITTS AND COLLECTIOKS. 113 
 
 U. S., 337; United States v. O'Neil, 30 Int. Rev. Rec, 127; 
 19 Fed., 567.) 
 
 Assessment where waiver of limitation is filed volun- 
 tarily — voluntary filing of return after expiration regarded 
 as waiver. (Regulations No. 1, p. 154.) 
 
 Commissioner to malje assessments of taxes and penalties 
 (sec. 3176, p. 108) ; of taxes on property sold under distraint 
 (sec. 3191, p. 121) ; on spirits removed without deposit in 
 warehouse (sec. 3253, p. 207) ; on spirits in case of excessive 
 loss (sec. 3293 as amended, p. 239) ; on distillers for defi- 
 ciency, etc. (sec. 3309, p. 263) ; for export stamps issued 
 (sec. 3314, p. 269) ; on tobacco, snufC, and cigars removed 
 without being stamped (sec. 3371, p. 384) ; of stamp taxes 
 within two years (sec. 3437, p. 553) ; also, see Regulations 
 No. 1, revised. 
 
 Penalty of double the tax under section 3256, R. S., not 
 assessable. (T. D. 858.) 
 
 As to when an assessment is conclusive. (United States v. 
 Black, 11 Blatch., 538 ; 19 Int. Rev. Rec, 116. United States 
 V. Hodson et al., 14 Int. Rev. Rec, 100.) 
 
 Legal effect of assessments as evidence. Letter of Com- 
 missioner Raum reviewing the decisions on the subject. (23 
 Int. Rev. Rec, 6.) 
 
 The assessment is prima facie evidence of the amount due. 
 (United Sta;tes v. Rindskopf, 105 U. S., 418 ; 28 Int. Rev. 
 Rec, 141. Clinkenbeard v. United States, 21 Wall., 65 ; 21 
 Int. Rev. Rec, 37. United States v. Cole, 134 Fed., 697; 
 T. D. 786. United States v. Black, 11 Blatch., 538; Fed. 
 Cas. No. 14600; 19 Int. Rev. Rec, 116. United States v. 
 Hodson, 14 Int. Rev. Rec, 100; Fed. Cas. No. 15376. 
 Schmitt V. Trowbridge, 24 Int. Rev. Rec, 381; Fed. Cas. 
 No. 12468. United States v. Butler, 18 Int. Rev. Rec, 164; 
 Fed. Cas. No. 14702. Charge to the jury in Brown v. 
 Harklns. T. D. 662. Western Express Co. v. United States, 
 141 Fed., 28 ; T. D. 965.) 
 
 The assessment is prima facie evidence against the surety 
 as well as the principal. (United States Fidelity & Guar- 
 anty Co. V. United States, 201 Fed., 91 ; T. D. 1824. ) 
 
 Obligation to pay tax does not depend upon an assessment. 
 (Dollar Savings Bank v. United States, 19 Wall., 227; 19 
 Int. Rev. Rec, 89 ; 22 Id., 310. King v. United States, 99 
 U. S., 229. United States v. Tilden, 9 Ben., 368; 24 Int. 
 Rev. Rec, 99. United States v. Little Miami Railroad, 26 
 Id., 101; 1 Fed., 700.) 
 
 A suit for taxes will lie without an assessment. (United 
 States V. Grand Rapids & Indiana Ry. Co., 239 Fed., 153; 
 T. D. 2166. United States v. Minneapolis Threshing Ma- 
 chine Co., 225 Fed., 1019; T. D. 2285.) 
 
 Power to assess stamp taxes. (Calkins v. Smietanka, 
 240 Fed., 138.) 
 
 An assessment no bar to a suit for an amount due over 
 and above the amount assessed and paid. (United States 
 V. Hazard, 22 Int. Rev. Rec, 309; United States v. Tilden, 
 24 Id., 99.) 
 
 The papers iipon which an assessment is made are privi- 
 leged, and courts have no authority to require their pro- 
 duction. (16 Op. Atty. Gen., 24; 24 Int. Rev. Rec, 178.) 
 See notes under section 882 Appendix, page 644. 
 
 The assessment, though made after the owner of the dis- 
 tillery, who had consented in writing that the premises 
 should be used as a distillery and that the taxes and pen- 
 alty should be a first lien on the premises (see sec. 3262, 
 p. 215), had sold it to another party, was held to be valid 
 and could not be attacked collaterally, and the sale under 
 distraint was valid. (United States circuit court, north- 
 
 140184°— 20 8 
 
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114 ASSESSMElfTS AND COLLECTIONS. ' 
 
 l» 
 
 ern fUstrict Illinois, Freysinger case ; Milan Distilling Co. 
 V. Tillson, 26 Int. Rev. Rec, 5 ; Fed. Gas. No. 3539. ) 
 
 If the asses.sment is illegal, all proceediags under it are 
 void and may be attacked collaterally. (Runkle v. Citizens' 
 Insurance Co., United States circuit court, southern district 
 of Ohio; 28 Int. Rev. Rec., 74; 6 Fed., 143.) 
 
 Receipts of the collector on Form 23J for the alphabetical 
 list showing taxes due are competent evidence. (United 
 States V. Hunt, 105 U. S. (15 Otto), 1S3; 28 Int. Rev. Rec, 
 134.) 
 
 Allegations in a bill that an assessment is Irregular and 
 void do not constitute any ground for an injunction to 
 restrain collection of the assessment. ( Alkan and Swenger 
 V. Bean, Collector. 23 Int. Rev. Rec, 351; Fed. Cas. No. 
 202.) See notes under section 3224, page 144. 
 
 Resort may be had to the instructions of the Internal 
 Revenue Office in regard to the preparation of assessment 
 lists to shovs' the meaning of the abbreviations in those lists. 
 (Snyder v. Marks, 109 tJ. S., 189; 29 Int. Rev. Rec, 403.) 
 
 Assessments based on estimates are legal. (United States 
 V. United States Fidelity & Guaranty Co., 144 Fed., 886; 
 T. D. 975.) 
 
 The authority confided to the assessor in making assess- 
 ments is in its nature judicial, and not ministerial. (United 
 States V. Hodson, Fed. Cas., 15376; 14 Int. Rev. Rec, 100.) 
 
 An assessor acts judicially in determining what persons 
 and things are subject to taxation. (Delaware R. Co. v. 
 Prettyman, Fed. Cas. No. 3767.) 
 
 In making an assessment officers act in a quasi-judicial 
 capacity. The presumption is that they proceed regularly. 
 (Western Express Co. v. United States, 1905 (C. C. A.), 141 
 Fed., 28 ; T. D. 965 : Clinkenbeard v. United States, 21 Wall., 
 65.) 
 
 When the mode of assessing a tax is not provided tot the 
 Commissioner may establish same. (Sec 3447, R. S.) 
 (Herold v. Kahn, 159 Fed., 608.) 
 
 Assessments on account of spirits unaccounted for, lia- 
 bility on each bond to be segregated. ( T. D. 1541. ) 
 
 Taxpayers to be notified in case of doubtful liability. 
 (T. D. 1275.) 
 
 Character of evidence to be submitted by revenue agents 
 when reporting persons for assessment. (T. D. 1407.) 
 
 Revenue agents when they recommend assessments should 
 State sufficient facts to sustain the charge. (T. D. 250.) 
 
 The fact that, for the time being, a tax is not collectible 
 because the party liable has removed to foreign territory, 
 or Is insolvent, is not sufficient in itself to warrant omission 
 Of the assessment. (T. D. 1553.) 
 
 Circular letter (No. 4), March 27, 1874, course to be taken 
 to recover taxes due. but unassessable (without waiver). 
 
 Internal-revenue circular. No. 567, instructs collectors as 
 to course to be taken to recover taxes due, but unassessable 
 (without waiver) because of the 15 months' limitation. 
 (T. D. 111.) 
 
 Obligation to pay a tax is a debt. (United States v. 
 Chamberlin, 219 U. S., 250; T. D. 1674.) 
 
 Commissioner has power to make second assessment after 
 expiration of two years from filing return by plaintiff. 
 (Camp Bird, Ltd., v. Howbert, 249 Fed., 27; T. Ds 2366, 
 266L) 
 
 No assessment by Commissioner is necessary for collec- 
 tion of Federal taxes, at least in a direct action by United 
 States. <N. Y. Life Ins. Co. v. Anderson, 257 Fed. 676.) 
 
 In an action against a collector to recover taxes errone- 
 ously assessed and paid, errors in the assessment in plain- 
 tiff's favor may also be corrected ; the United States, which 
 
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ASSESSMENTS AND COLLECTIONS. 115 I 
 
 is the real defendant, not being affected by any estoppel 
 which might afflect the officer making the assessment. 
 (New York Life Ins. Co. r. Anderson, 257 Fed. 576.) 
 
 Sec. 3183. {Amended ly sec. 3, act of March 1, 1879 , Duty of coi- 
 {20 Stat., 327).-] It shall be the duty of the collectors, itxlr '" ""'"'' 
 or their deputies, in their respective districts, and they 
 are authorized, to collect all the taxes imposed by law, 
 however the same may be designated. And every col- i.ccei'*ts*in 'S' 
 lector and deputy collector shall give receipts for all of stamps. '' 
 sums collected by him, excepting only when the same 
 are in payment for stamps sold and delivered; but no- 
 collector or deputy collector shall issue a receipt in lieu 
 of a stamp representing a tax. 
 
 Circular 595, March 11, 1901 (T. D. 297), relative to the 
 unlawful issue of receipts for money in payment of special 
 taxes. 
 
 Collectors are advised that it is their duty to use the 
 same diligence to collect a tax after it has been abated 
 as uncollectible, or as in suit, as before abatement. (T. D. 
 60.) 
 
 It is their duty to collect taxes and to see that the laws 
 are complied with ; to seize property liable to seizure and 
 to prosecute for recovery of sums forfeited by law. (Ave- 
 rill V. Smith, 17 Wall. 82.) ""^ 
 
 The collector is a ministerial officer who must obey the 
 mandate in his hands for the collection of the tax. (First 
 National Bank v. Waters, 19 Blatch., 242.) 
 
 Protection afforded a collector in collecting an assess- 
 ment. (T. D. 987; Erskine v. Hohnbach, 14 Wall., 61^; 
 17 Int. Rev. Rec, 19. Haffin v. Mason, 15 Wall., 671; 17 
 Int. Rev. Rec, 118. Harding r. Woodcock, 137 U. S., 43.) 
 
 Where an assessment Is made, it is the collector's duty 
 ordinarily to proceed with the collection of the tax with- 
 out questioning the legality of the same. (T. D. 621; 
 Jan. 20, 1903.) 
 
 The collector has no authority to question the validity 
 of assessments. The assessment lists constitute his war- 
 rant to collect. (Haffin v. Mason, 15 Wall., 675; 17. Int. 
 Rev. Rec, 118.) 
 
 Deputy collectors to give personal receipts for collections 
 made by them. (T. D. 2341.) 
 
 Duplicate or additional receipts. (T. D. 2220.) 
 
 Receipts issued by deputies. (T. D. 2247.) 
 
 Sec. 37. {Act of August 27, 189^ {28 Stat., 509).] 
 That it shall be the duty of every collector of internal Receipts to be 
 revenue, to whom any payment of any taxes other than mIn"o'f^t°ax.'"''" 
 the tax represented by an adhesive stamp or other en- 
 graved stamp is made under the provisions of this Act, 
 to give to the person making such payment a full writ- 
 ten or printed receipt, expressing the amount paid and 
 the particular account for which such payment was 
 made; and whenever such payment is made such collector 
 shall, if required, give a separate receipt for each tax separate re- 
 
 .,', ^ -, t , ^ -p j_ 1 j_ ceipts to be given 
 
 paid by any debtor, on account or payments made to or in certaiu eases. 
 to be made by him to separate creditors in such form 
 that such debtor can conveniently produce the same 
 separately to his several creditors in satisfaction of their 
 respective demands to the amounts specified in such re- 
 ceipts; and such receipts shall be sufficient evidence in 
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116 ASSESSMENTS AND COLLECTIONS. 
 
 favor of such debtor, to justify him in withholding the 
 amount therein expressed from his next payment to his 
 creditor; but such creditor may, upon giving to his 
 debtor a full written receipt, acknowledging the pay- 
 ment to him of whatever sum may be actually paid, and 
 accepting the amount of tax paid as aforesaid (specify- 
 ing the same) as a further satisfaction of the debt to 
 that amount, require the surrender to him of such col- 
 lector's receipt. 
 
 Collector issuing stamps before payment. (Sec. 
 1, act March 1, 1879, p. 100.) 
 
 Collections to be paid into Treasury daily. (Sec. 
 3210, p. 129.) 
 
 Case of Pinkney Rollins, collector, taking sight drafts. 
 (23 Int. Rev. Rec, 6.) 
 
 As to rendering accounts. (Sec. 3212, p. 132, and see. 
 3622, p. 663.) 
 
 Receipt for adhesive stamps. (T. D. 2089.) 
 
 Notice and de- gjjc. 3184. Where it is not otherwise provided, the col- 
 
 mand of taxes. - t 1 1 • i i j • , i • t p 
 
 lector shall m person or by deputy, within ten days after 
 receiving any list of taxes from the Commissioner of 
 Internal Revenue, give notice to each person liable to 
 pay any taxes stated therein, to be left at his dwelling or 
 usual place of business, or to be sent by mail, stating the 
 amount of such taxes and demanding payment thereof. 
 If such person does not pay the taxes within ten days 
 after the service or the sending by mail of such notice, it 
 shall be the duty of the collector or his depvity to collect 
 eMiT ^a^nd '^h^ ^^® ^^^^ taxes with a penalty of five per centum addi- 
 terest. tioual upou tliB amount of taxes, and interest at the rate 
 
 of one per centum a month. 
 
 Interest for full time will be collected on an assessment 
 the abatement for which has been applied for and re- 
 jected ; that Is, time consumed in considering the claim 
 must be included. But in the case of the 5 per cent penalty 
 such time may be thrown out, provided 10 days do not 
 elapse before claim Is made or before payment after re- 
 jection. (Regulations No. 1, revised, p. 110; T. T>. 1414.) 
 
 Sections 3184 and 3185 strictly construed. (United 
 States r. Allen, 14 Fed., 263.) 
 
 Notice necessary before taxpayer can be charged with 
 penalty and Interest. (United States v. Bristow, 20 Fed., 
 378.) Notice is also necessary to secure lien. (T. D. 1995.) 
 
 Directions to enforce 5 per cent penalty and interest. 
 (Aug. 15, 1871 ; 14 Int. Rev. Rec, 58.) 
 
 Where 50 per cent penalty has been added to the special 
 tax under Sec. 3176, R. S., the 5 per cent penalty and inter- 
 est must be reckoned on the entire assessment Including 
 both the tax and 50 per cent penalty. (T. D. 870, Feb. 27, 
 1905.) 
 
 Five per cent penalty and interest on delayed payments 
 of assessed taxes. — Assessed taxes ,held to be due and 
 payable 10 days after actual mailing of Notice and Demand, 
 Form 17. (T. D. 1659.) 
 
 Notice by mail — ^presumption of delivery. (United States 
 V. General Inspection & Loading Co., 204 Fed., 657; T. D. 
 1773.) 
 
 Deposit of letter in post office evidence tending to show 
 receipt. (United States i\ Babcoclc, 3 Dill., 571; Fed. Cas. 
 No. 14485.) 
 
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ASSESSMENTS AND COLLECTIONS. 117 
 
 Sec. 3185. All returns required to be made monthly by ^^ ^^^"^^^ ^"'^^5 
 any person liable to tax shall be made on or before the when 'tL''' pay- 
 tenth day of each month, and the tax assessed or due *'''^" 
 thereon shall be returned by the Commissioner of Inter- 
 nal Revenue to the collector on or before the last day of 
 each month. All returns for which no provision is other- 
 wise made shall be made on or before the tenth day of 
 the month succeeding the time when the tax is due and 
 liable to be assessed, and the tax thereon shall be re- 
 turned as herein provided for monthly returns, and shall 
 be due and payable on or before the last day of the 
 month in which the assessment is so made. When the 
 said tax is not paid on or before the last day of the month, 
 as aforesaid, the collector shall add a penalty of five per 
 centum, together with interest at the rate of one per 
 centum per month, upon such tax from the time the 
 same became due; but no interest for a fraction of a 
 month shall be demanded : Provided, That notice of the 
 time when such tax becomes due and payable is given in 
 such manner as may be prescribed by the Commissioner 
 of Internal Revenue. It shall then be the duty of the 
 collector, in case of the non-payment of said tax on or 
 before the last day of the month, as aforesaid, to demand 
 payment thereof, with five per centum- added thereto. Five per cent 
 and interest at the rate of one per centum per month, as terTrt at fte rate 
 aforesaid, in the manner prescribed by law ; and if said ^[^ \north °°"' 
 tax, penalty, and interest, are not paid within ten days 
 after such demand, it shall be lawful for the collector or 
 his deputy to make distraint therefor, as provided by 
 law. 
 
 See Sec. SITS, amended, p. 104. 
 
 No interest for a fractional part of a month shall be de- 
 manded, and in computing interest it is reckoned on the 
 tax only. The 5 per cent penalty must not be added to 
 the tax for the purpose of computing interest. The penalty 
 and Interest must be collected in all cases when a taxpayer 
 has become liable thereto, as the collector has no discretion 
 in the matter. Regulations No. 1, revised. 
 
 Instructions to collectors in regard to notices to tax- 
 payers; Circular No. 311. (33 Int. Rev. Rec, 109; Regula- 
 tions No. 2, revised, p. 49.) 
 
 No power to remit penalty and interest if legally in- 
 curred. (9 Int. Rev. Rec., 188; 14 Id., 58.) 
 
 If spirits are exported without payment of tax after it 
 has been assessed, the distiller is not relieved from the 5 
 per cent penalty. (Clay & Co. v. Swope, 38 Fed., 396; 35 
 Int. Rev. Rec., 136.) 
 
 Notice and demand for assessed taxes to be issued 
 promptly to secure tax lien, penalty, and interest in case 
 of nonpayment. (T. D. 1995.) 
 
 Collection of 5 per cent penalty for failure to pay in- 
 come tax. (T. D. 2003.) 
 
 The 50 per cent and 100 per cent added to the tax are 
 subject to the 5 per cent penalty and 1 per cent per month 
 interest, the same as assessed taxes. Regulations No. 2, 
 revised, p. 50. 
 
 Interest at the rate of 1 per cent per month is recover- 
 able as interest and not as penalty. (United States v. 
 Guest, 143 Fed., 456; T. D. 979.) 
 
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118 ASSESSMENTS AND COLLECTION'S. 
 
 Relative to 5 per cent penalty and interest at 1 per cent 
 per month when claims for abatement have been filed and 
 rejected, see first note under section 3184. 
 
 Lien for taxes. gj,p_ 3186. [Amended by sec. 3, act of March 1, 1879 
 {20 Stat., 327) and act of March i, 1913 {37 Stat., 
 1016).] If any person liable to pay any tax neglects oi" 
 refuses to pay the same after demand, the amount shall 
 be a lien in favor of the United States from the time 
 when the assessment-list was received by the collector, 
 except when otherwise provided, until paid, with the 
 interest, penalties, and costs that may accrue in addition 
 thereto, upon all property and rights to property be- 
 longing to such person: Provided, however. That such 
 lien shall not be valid as against any mortgagee, pur- 
 chaser, or judgment creditor imtil notice of such lien 
 shall be filed by the collector in the office of the clerk 
 of the district court of the district within which the 
 Act of Mar. property subject to such lien is situated: Provldtd 
 isA!)^' ^'^' ^' f'^i^ther. Whenever any State by appropriate legislation 
 authorizes the filing of such notice in the office of the 
 registrar or recorder of deeds of the counties of that 
 State, or in the State of Eouisiana in the parishes there- 
 of, then such lien shall not be valid in that State as 
 against any mortgagee, purchaser, or judgment creditor, 
 until such notice shall be filed in the office of the regis- 
 trar or recorder of deeds of the county or counties, or 
 parish or parishes in the State of Louisiana, within 
 which the property subject to the lien is situated. 
 
 Because of the special provision for a lien for the tax 
 upon spirits (sec. 3251, p. 192) there is rarel.v oecasion for 
 calling in the provisions of section 3186 in the case of 
 taxes on spirits. 
 
 Lien in case of deficiency when spirits are withdrawn 
 for exportation. (See 16 Op. Atty. Gen., 634; 25 Int. Rev. 
 Rec, 342.) 
 
 In order to support and enforce a statutory lien for 
 taxes, all the prerequisites of the law granting the lien 
 must be strictly complied with. (United States v. Allen, 
 14 Fed., 263.) 
 
 A lien for taxes does not stand upon the footing of an 
 ordinary incumbrance, and is not displaced by a sale under 
 a preexisting judgment or decree, unless otherwise di- 
 rected by statute. It attaches to the res without .re- 
 gard to individual ownership, and when it is enforced 
 by sale pursuant to the statute prescribing the mode of 
 assessing and collecting them, the purchaser takes a valid 
 and unimpeachable title. (Osterberg v. Union Trust Co., 
 93 U. S. (3 Otto); 424; 23 Int. Rev. Rec, 146.) 
 
 The Pacific Railroad Co. appeared not to have paid all 
 taxes due on dividends. It was succeeded by the Atlantic 
 and Pacific Railroad. Demand was made by the collector 
 of the first district of Missouri on the Atlantic and Pacific 
 Railroad. Held that the demand did not create a lien in 
 favor of the United States. Demand must be for specific 
 amount. All the steps required by law must be pursued 
 strictly. (23 Int. Rev. Rec, 384.) 
 
 A lien for taxes created by the act takes effect only 
 upon property belonging to the delinquent at the time the 
 demand for the payment of the tax is made. The lieu 
 
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ASSESSMEOSTTS AND COLLECTIONS. 119 
 
 requires an assessment, a notice that the tax is due, and 
 a specific demand upon the individual taxpayer. There 
 is a distinction between the liability of a taxpayer under 
 the common law and the creation and enforcement of a 
 lien. (Decision of Circuit Judge RleCrary, United States 
 V. Pacific Railroad et al., 26 Int. Eev. Rec., 100; 1 Mc- 
 Crary, 1; 1 Fed., 97; Brown r. Goodwin, 75 N. Y., 409; 
 T. D. 1995.) 
 
 See on this section United States v. Snvder, 149 U. S., 
 210; 39 Int. Rev. Rec, 189. 
 
 The Government's Hen is unaffected by the fact that a 
 subsequent incumbrancer or purchaser became such with- 
 out knowledge of Government lien. (United States v. 
 Curry, 201 Fed., 371.) 
 
 Sec. 3187. If any person liable to pay any taxes neg- Taxes coiiecti- 
 lects or refuses to pay the same within ten days after '^ '''' '''^'™'''*- 
 notice and demand, it shall be lawful for the collector 
 or his deputy to collect the said taxes, with fire per 
 centum additional thereto, and interest as aforesaid, by 
 distraint and sale, in the manner hereafter provided, of 
 the goods, chattels, or effects, including stocks, sfeciiri- 
 ties, and e^ddences of debt, of the person delinquent as 
 aforesaid : Provided, That there shall be exempt from ^J'l°^^^^l^ *^f/ 
 distraint and sale, if belonging to the head of a family, tSint. '"^ 
 the school-books and wearing apparel necessary for such 
 family; also arms for personal use, one cow, two hogs, 
 five sheep and the wool thereof, provided the aggregate 
 market-value of said sheep shall not exceed fifty dollars ; 
 the necessary food for such cow, hogs, and sheep, for a 
 period not exceeding thirty days; fuel to an amount not 
 greater in value than twenty-five dollars; provisions to 
 an amount not greater than fifty dollars; household 
 furniture kept for use to an amount not greater than 
 three hundred dollars ; and the books, tools, or imple- 
 ments, of a trade or profession, to an amount not greater 
 than one hundred dollars shall also be exempt; and the 
 officer making the distraint shall summon three disin- 
 terested householders of the vicinitj', who shall appraise 
 and set apart to the owner the amount of property herein 
 declared to be exempt. 
 
 " Goods and chattels " have no invariable fixed meaning 
 ia legal construction. The term " goods " includes money. 
 (22 Op. Att. Gen., 178.) 
 
 Collectors in accepting sureties on bonds will be careful to 
 see that no portion of the property described in the surety's 
 affidavit is exempt from distraint under this section or under 
 the laws of the State in wliich the surety resides. 
 
 State exemption laws Inapplicable to debts due the United 
 States. (United States v. Howell, 9 Fed., 674.) 
 
 A sale o?E property under a distraint warrant is clearly 
 distinguishable from a sale of property seized and con- 
 demned in forfeiture proceedings. A sale under a distraint 
 warrant does not cut off the title of a third person who does 
 not owe the tax. (Sheridan v. Allen et al., 153 Fed., 568.) 
 
 The issuance of " Omnibus " warrants of distraint is pro- 
 hibited. Distraint warrants should be sepai-ate, and prompt 
 returns should be made by deputies in every case, in pursu- 
 ance of directions from collectors. (T. D. 185, May 28, 
 1900.) 
 
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120 ASSESSMENTS AND COLLECTIONS. 
 
 Only persons who are the heads of families are entitled to 
 exemptions. — Merchants not entitled to exemption as per- 
 sons engaged in a trade or profession. (T. D. 1499.) 
 
 Taxes can be collected by distraint and by suit on the bond 
 at the same time. (Harding v. Woodcock, 137 tJ. S., 43; 
 United States v. Barrowclife, 3 Ben., 519; Fed. Cas. No. 
 14528.) 
 
 Procedure when property is in hands of receiver. (T. D. 
 667.) 
 
 The United States Is compelled to resort to. a sale of 
 chattels and personal property of delinquent before institu- 
 ting proceedings to enforce lien on real estate. (United 
 States V. Curry, 201 Fed., 371.) 
 
 Injunction against collector in distraint ijroceediugs. 
 Courts will not interfere with executive officers. (Brown v. 
 N. Glen Williams, 194 Fed., 855 ; T. D. 1760 ; Gouge r. Hart, 
 250 Fed., 802.) 
 
 Mode of levy- 
 ing distraint. Sec. 3188. In such case of neglect or refusal, the col- 
 lector may levy, or by warrant may authorize a deputy 
 collector to levy, upon all property and rights to property, 
 except such as are exempt by the preceding section, be- 
 longing to such person, or on which the said lien exists, 
 for the payment of the sum due as aforesaid, with interest 
 and penalty for non-payment, and also of such further 
 sum as shall be sufficient for the fees, costs, and expenses 
 of such levy. 
 mu°t^'ixh?bit evi^ ^^*^' ^^^^- ^^^^ pcrsous, and officcrs of companies or cor- 
 dence relating to porations, are required, on demand of a collector or 
 FrThied? ** ' " ' deputy collector about to distrain or having distrained on 
 ^ any property, or rights of property, to exhibit all books 
 containing evideiace or statements relating to the subject 
 of distraint, or the property or rights of property liable 
 to distraint for the tax due as aforesaid. 
 ^.Proceedings on Sec. 3190. When distraint is made, as aforesaid, the 
 18 raint. officer charged with the collection shall make or cause to 
 be made an account of the goods or effects distrained, a 
 copy of which, signed by the officer making such distraint, 
 shall be left with the owner or possessor of such goods or 
 effects, or at his dwelling or usual place of business, with 
 some person of suitable age and discretion, if any such can 
 be found, with a note of the sum demanded, and the tinie 
 and place of sale; and the said officer shall forthwith cause 
 a notification to be published in some newspaper within 
 the county wherein said distraint is made, if a newspaper 
 IS published in said county, or to be publicly posted at the 
 post-office, if there be one within five miles, nearest to the 
 residence of the person whose property shall be distrained, 
 and in not less than two other public' places. Such notice 
 shall specify the articles distrained, and the time and 
 place for the sale thereof. Such time shall not be less 
 than ten nor more than twenty days from the date of such 
 notification to the owner or possessor of the property and 
 the publication or posting of such notice as herein pro- 
 vided, and the place proposed for the sale shall not be 
 more than five miles distant from the place of making 
 such distraint. Said sale may be adjourned from time 
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ASSESSMENTS AND COLLECTIONS. 121 
 
 to time by said officer, if he deems it advisable, but not 
 for a time to exceed in all thirty days. 
 
 Collectors enjoined against unnecessary delays in making 
 sales, providing against postponement beyond tlie statutory 
 period, and as to making reports promptly. (T. D. 623.) 
 
 Sec. 3191. When property subject to tax, but upon when property 
 ^vhich the tax has not been paid, is seized upon distraint t?a?nt"ilf"ubj'ict 
 and sold, the amount of such tax shall, after deducting *°j*^^l^_»"'i t^" 
 the expenses of such sale, be first appropriated out of the 
 proceeds thereof to the payment of the tax. And if no 
 assessment of such tax has been made upon such property, 
 the collector shall make a return thereof in the form re- 
 quired by law, and the Commissioner of Internal Eevenue 
 shall assess the tax thereon. 
 
 As tases are now paid by stamps, assessments under the 
 last clause are rarely necessary. (See sec. 3458, p. 597.) 
 
 Sec. 3192. When any property advertised for sale under ■^yl^en property 
 distraint, as aforesaid, is of a kind subject to tax, and the ^°]jf„j""^'J ^'^' 
 tax has not been paid, and the amount bid for such prop- pOTchase™^'^ f o r 
 erty is not equal to the amount of the tax, the collector S"!*^'^ ^*''*^'' 
 may purchase the same in behalf of the United States for 
 an amount not exceeding the said tax. All property so 
 purchased may be sold by the collector, under such regu- 
 lations as may be prescribed by the Commissioner of 
 Internal Revenue. The collector shall render to the 
 Commissioner a distinct account of all charges incurred 
 in such sales, and, in case of sale, shall pay into the 
 Treasury the surplus, if any there be, after defraying all 
 lawful charges and fees. 
 
 Real estate bid in for United States. (T. D. 16.j4.) 
 
 Sec. 3193. In any case of distraint for the payment of Property dis- 
 the taxes aforesaid, the goods, chattels, or effects so dis- stored"^ on pay- 
 trained shall be restored to the owner or possessor, if, ""'="' ^^'°'"' '^'''^• 
 prior to the sale, payment of the amount due is made to 
 the proper officer charged with the collection, together 
 with the fees and other charges; but in case of nonpay- 
 ment as aforesaid, the said officer shall proceed to sell the 
 said goods, chattels, or effects at public auction, (and 
 shall retain from the proceeds of such sale the amount 
 demandable for the use of the United States, and a com- 
 mission of five per centum thereon for his own use, with 
 the fees and charges for distraint and sale, rendering the 
 overplus, if any there be, to the person who may be en- 
 titled to receive the same). 
 
 The clause in parenthesis is obsolete in view of subse- 
 quent legislation. 
 
 Section 3193 was amended by the act of May 27, 1908, 
 to the extent that overplus can not be returned to legal 
 owner by a collector, but must be deposited as internal- 
 revenue collections. (Int. Rev. Cir. No. 725; T. D. 1373.) 
 
 Allowances for salary and ofBce expenses of collectors 
 are in lieu of salary and commissions formerly provided by 
 law, except a commission of one-half of one per centum on 
 
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I 122 ASSESSMESriS AK-D COLLBCIIOKS. 
 
 sales of tax-paid spirit stamps is allowed where the office is 
 less than maxliirnm. ( See sees. 3148, p. T6, and 3314, p. 269. ) 
 
 Effect of cer- Sec. 3194. In all cases of sale, as aforesaid, the certifi- 
 cate of such sale shaU. be prima- facie evidence of the right 
 of the officer to make such sale, aiid conclusive evidence 
 of the regularity of his proceedings in making the sale, 
 and shall transfer to the purchaser all right, title, and in- 
 terest of such delinquent in and to the property sold ; and 
 where such property consists of stocks, said certificate 
 shall be notice, when received, to any corporation, com- 
 pany, or association of said transfer, and shall be author- 
 ity to such corporation, company, or association to record 
 the same on their books and records in the same manner 
 as if transferred or assigned by tbe party holding the 
 same, in lieu of any original or prior certificates, which 
 shall be void, whether canceled or not. And said cer- 
 tificates, where the subject of sale is securities or other 
 evidences of debt, shall be good and valid receipts to the 
 person holding tlie same, as against anj' person holding, 
 or claiming to hold, possession of such securities or other 
 evidences of debt. 
 When property Sec. 3195, When any property liable to distraint for 
 diviaiWe.'^ " ™* taxes IS not divisible, so as to enable the collector hj a sale . 
 of part thereof to raise the whole amount of the tax, with 
 all costs, charges, and commissions, the whole of such 
 paxiperty shall be sold, and the surplus of the proceeds of 
 the sale, after satisfying the tax, costs, and charges, shall 
 be paid to the person legally entitled to receive the same; 
 or, if he can not be foiuid, or refuses to receive the same, 
 shall be deposited in the Treasury of the United States, 
 to be there held for his use until he makes application 
 therefor to the Secretary of the Treasury, who, upon 
 such application and satisfactory proofs in support 
 thereof, shall, by warrant on the Treasury, cause the same 
 to be paid to the applicant. 
 
 The act of May 27, 1908 (35 Stat, 325), in effect amends 
 this section by providing that the gross amount of proceeds 
 shall be deposited in the Treasury. 
 
 Surplus proceeds of sales can not in any case be returned 
 to legal owner liy a collector, but must be deposited as in- 
 ternal-revenue collections. Claims for surplus process in 
 cases where persons entitled to receive same are not known 
 at time of sale, T^^ll be made and paid as heretofore. (Clr. 
 725; T. D. 1373.) 
 
 tat^mry be'soTd ^^^- ^^^^' ^^P goods, chattcls, Or cffficts Sufficient to 
 to satisfy taxes. Satisfy the taxes imposed upon any person are not found 
 by the collector or deputy collector, he is authorized to 
 collect the same by seizure and sale of real estate. 
 seku°rftnd^lSe ^^^- ^^^^^ [Amended hy sec. 3, act of March 1, 1879 
 os Kai estate ioT (£0 Stat., ^£7).] The officer maldng the seizure men- 
 tioned in the preceding section shall give notice to the 
 person whose estate it is proposed to sell by giving him 
 in hand, or leaving at his last or usual place of abode, if 
 he has any such within the collection-district where the 
 
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ASSiESSMENTS AKD COLLECTION'S. 12S 
 
 said estate is situated, a notice, in Avriting, stating what 
 particular estate is to be sold, describing the same with 
 reasonable certainty, and the time when and place where 
 said officer proposes to sell the same; which time shall 
 not be less than twenty nor more than forty days from 
 the time of gi^^ng said notice. The said officer shall also 
 cause a notification to the same effect to be published in 
 some newspaper within the county where such seizure is 
 made, if any such there be, and shall also cause a like 
 notice to be posted at the post-office nearest to the estate 
 seized, and in two other public places Avithin the county ; 
 and the place of said sale shall not be more than five miles 
 distant from the estate seized, except by special order of 
 the Commissioner of Internal Revenue. At the time 
 and place appointed^ the officer making such seizure 
 shall proceed to sell the said estate at j)ublic auction, 
 offering th« same at a minimum price, including the 
 expense of making such Iqtj, and all charges for ad- 
 vertising and an officer's fee of ten dollars. ^ATaen the 
 real estate so seized consists of several distinct tracts or 
 parcels, the officer making sale thereof shall offer each 
 tract or parcel for sale separate^, and shall, if he deem 
 it advisable, apportion the expenses, charges, and fees 
 aforesaid to such several tracts or parcels, or to any of 
 them, in estimating the minimum price aforesaid. If 
 no person offers for said estate the amount of said 
 minimum price, the officer shall declare the same to be 
 purchased by him for the United States; otherwise the 
 same shall be declared to be sold to the highest bidder. 
 
 And in case the same shall be declared to be purchased purchases for 
 for the United States, the officer shall immediately trans- ^■""'id states. 
 mit a certificate of the purchase to the Commissioner of 
 Internal Revenue, and, at the proper time, as hereafter 
 larovided, shall execute a deed 'therefor, after its prepara- 
 tion and the indorsement of approval as to its form by 
 the United States district attorney for the district in 
 which the property is situate, and shall without delay 
 cause the same to be duly recorded in the proper registry 
 of deeds, and immediately thereafter shall transmit such 
 deed to the Commissioner of Internal Revenue. 
 
 And said sale may be adjourned from time to time by Adjournment oj 
 said officer for not exceeding thirty days in all, if he shall "'''^' 
 think it advisable so to do. If the amount bid shall not 
 be then and there paid, the officer shall forthwith pro- 
 ceed to again sell said estate in the same manner. 
 
 And it is hereby provided. That all certificates of pur- Deeda. 
 chase, and deeds of property purchased by the United 
 States under the internal-revenue laws, on sales for taxes, 
 or under executions issued .from United States courts, 
 which now are, or hereafter may be, found in the office 
 of any collector, United States marshal, or United States 
 district attorney, shall be immediately transmitted by 
 
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124 ASSESSMENTS AND COLLECTIONS. 
 
 such officers respectively to the Commissioner of Internal 
 Revenue. 
 
 9{; * * * "1= 4 . * 
 
 (1) Seizure of real property. — Unless required by statute, 
 a levy or seizure of real property for the purpose of sale 
 to satisfy a debt or tax may be made without going up6n 
 the premises, by making a memorandum upon the warrant 
 of the description of the premises for the purpose of a levy 
 and sale. 
 
 (2) Sale of real property. — A deputy collector of internal 
 revenue, to whom a warrant was directed for the collec- 
 tion of a delinquent tax due from A, levied upon 330 acres 
 of land belonging to A, when said tax became due, by enter- 
 ing upon said warrant a correct description of the premises, 
 by metes and bounds, but at the same time incorrectly 
 stated therein that they were in the occupation of B, who 
 lived over 2 miles distant from the premises, and after- 
 wards offered the premises which said B lived on for sale 
 upon the erroneous assumption that they were the premises 
 of A, upon which he levied as above, and there being no 
 bidders, declared the same purchased for the United States, 
 for the amount of the tax, interest thereon, and charges. 
 Held, that there was no valid sale of the premises, and 
 that the United States took nothing by the subsequent con- 
 veyance to it from the collector. (United States v. Hess, 
 5 Sawyer, 533; 25 Int. Rev. Bee, 201, 240.) 
 
 When real estate is offered for sale under warrant of dis- 
 traint and is bid in for the United States, the amount bid 
 should be for no larger sum than is necessary to prevent 
 the sale for an inadequate price. (T. D. 1654.) 
 
 If property is bid in for an amount equal to the tax it 
 extinguishes the debt, and suit can not be maintained on the 
 bond. (United States v. Triplett, 22 Int. Rev. Rec., 207.) 
 
 Bill in equity by party not in possession to remove cloud 
 from title to land purchased by United States not authorized 
 unless State statutes authorize it. (Wilson v. United States, 
 118 U. S., 86.) 
 
 It is a general rule that in the execution of a power to 
 sell lands for nonpayment of taxes a strict compliance with 
 all the material requirements of the statute authorizing the 
 sale is required. 
 
 Regarding the seizure and sale of real estate for taxes. 
 (Regulations No. 12, revised, p. 41 ; United States r. Mac- 
 koy, 2 Dill., 299; Mansfield r. Excelsior Refining Co., 135 
 U. S., 326; 36 Int. Rev. Rec, 165.) 
 
 When real estate is bid in for the United States for taxes 
 the collector will not take credit until the period for re- 
 demption has expired and deed executed. (T. D. 1803.) 
 
 Sec. 3224 forbids setting aside a sale i of land made under 
 restraint. - (Gouge r. Hart, 2.50 Fed., 802.) 
 
 Offers for real estate to be deposited as internal-revenue 
 collections. (Act May 27, 1908; T. D. 1373.) 
 
 The oflicer's fee of $10 for making the sale of real estate 
 imder distraint proceedings is no longer allowed. (See sec. 
 3206; T. D. 1373.) 
 
 Manner of sale Sec. 1. \Act of March 3, 1893 {27 Stat., 761). -l That 
 
 under orders and -- , l / . \ . ^ -, itt ' ■* -i 
 
 decrees of Fed- all real estate or any interest in land sold under any order 
 erai courts. ^^ ^^^^^^ ^^ ^^^ United States Court shall be sold at pub- 
 lic sale at the Court-house of the county, parish, or city 
 in which the property, or the greater part thereof, is 
 located, or upon the premises, as the court rendering 
 such order or decree of sale may direct. 
 
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ASSESSMENTS AND COLLECTIONS. 125 
 
 Sec. 2. (Same.) That all personal property sold under s^ie of per- 
 any order or decree of any Court of the United States '"""""'''' 
 
 shall be sold as provided in the first section of this act, 
 unless in the opinion of the court rendering such order 
 or decree, it would be best to sell it in some other manner. 
 
 Sec. 3. (Same.) That hereafter no sale of real estate nctict'ofsaTe oi 
 under any order, judgment, or decree of any United States ''^"^ ^'*^*'=- 
 Court shall be had without previous publication of notices 
 of such proposed sale being ordered and had once a week 
 for at least four Aveeks prior to such sale in at least one 
 newspaper printed, regularly issued and having a general 
 circulation in the county and State where the real estate 
 proposed to be sold is situated, if such there be. If said 
 property shall be situated in more than one county or 
 State, such notice shall be published in such of the coun- 
 ties where said property is situated, as the court may 
 direct. Said notice shall, among other things, describe 
 the real estate to be sold. The court may, in its discre- 
 tion, direct the publication of the notice of sale herein pro- 
 vided for to be made in such other papers as may seem 
 j)roper. 
 
 Sec. 3198. Upon any sale of real estate, as provided certificate of 
 in the preceding section, and the payment of the purchase ''""^ ^'*' °^"^' 
 money, the officer making the seizure and sale shall give 
 to the purchaser a certificate of purchase, which shall set 
 forth the real estate purchased, for whose taxes the same 
 was sold, the name of the purchaser, and the price paid 
 therefor; and if the said real estate be not redeemed in 
 the manner and within the time hereafter provided, the 
 said collector or deputy collector shall execute to the said 
 purchaser, upon his surrender of said certificate, a deed 
 of the real estate purchased by him as aforesaid, reciting 
 the facts set forth in said certificate, and in accordance 
 with the laws of the State in which such real estate is 
 situate upon the subject of sales of real estate under exe- 
 cution. 
 
 Sec. 3199. The deed of sale given in pursuance of the toTprtaaS 
 preceding section shall be prima facie evidence of the evidence, etc. 
 facts therein stated ; and if the proceedings of the officer 
 as set forth have been substantially in accordance with the 
 provisions of law, shall be considered and operate as a 
 conveyance of all the right, title, and interest the party 
 delinquent had in and to the real estate thus sold at the 
 time the lien of the United States attached thereto. 
 
 In case of a distillery, although consent is given that the 
 Government has a prior lien, only interest of distiller is 
 transferred to purchaser. (Mansfield v. Excelsior Refining 
 Co., 36 Int. Rev. Rec, 165; 135 U. S., 326.) 
 
 Relative to deeds. (Brown v. Goodwin, 75 N. Y., 409; 
 Fox V. Stafford, 90 N. C, 296; Flemister v. Flemlster, 
 83 Ga., 79.) 
 Sec. 3200. Any collector or deputy collector may, f or ^^jCoUector^ may 
 the collection of taxes imposed upon any person, and com- *unquert.^^ i^n 
 mitted to him for collection, seize and sell the lands of same state. 
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126 ASSESSMENTS AND COLLECTIONS. 
 
 such person situated in any other collection district within 
 the State in which such oiBcer resides; and his proceed- 
 ings in relation thereto shall have the same effect as if the 
 same were had in his proper collection district. 
 la.S^'^Tr^OT ° to Sec. 3201. Any person whose estate may be proceeded 
 K>ie. against as aforesaid shall have the right to pay the amount 
 
 due, together with the costs and charges thereon, to the 
 collector or deputy collector at any time prior to the sale 
 I thereof, and all further proceedings shaU cease from the 
 
 I time of such payment. 
 
 . Redemption of Sec. 3202. The owners of any real estate sold as af ore- 
 '■ ° ''"" ^* "' said, their heirs, executors, or administrators, or any per- 
 son having any interest therein, or a lien thereon, or any 
 pei-son in their behalf, shall be permitted to redeem the 
 land sold, or any particular tract thereof, at any time 
 within one year after the sale thereof, upon payment to 
 the purchaser, or, in case he can not be found in the 
 county in which the land to be redeemed is situate, then 
 to the collector of the district in which the land is situate, 
 for the use of the purchaser, his heirs or assigns, the 
 amount paid by the said purchaser and interest thereon 
 at the rate of twenty per centum per annum. 
 
 The local State laws or the rules of United States courts 
 govern as to the redemption of land sold tinder execution. 
 ( Regulations No. 12, revised, p. 40. ) 
 
 Ball" '''"■'' " ' Sec. 3203. [Ame7id,ed hy sec. 3, act of March 1, 1879 {20 
 Stat., 327).] It shall be the duty of every collector to 
 keep a record of all sales of land made in his collection 
 district, whether by himself or his deputies, or by another 
 collector, in which shall be set forth the tax for which any 
 such sale was made, the dates of seizure and sale, the 
 name of the party assessed, and all proceedings in making 
 said sale, amount of fees and expenses, the name of the 
 purchaser and the date of the deed ; and said record shall 
 be certified by the officer making the sale. And on or be- 
 fore the fifth day of each succeeding month he shall trans- 
 mit a copy of such record of the preceding month to the 
 Commissioner of Internal Revenue. 
 
 And it shall be the duty of every deputy making sale, 
 as aforesaid, to return a statement of all his proceedings 
 to the collector, and to certify the record thereof. In 
 case of the death or removal of the collector, or the ex- 
 piration of his term of office from any other cause, said 
 record shall be delivered to his successor in office; and 
 a copy of every such record, certified by the collector, 
 shall be evidence in any court of the truth of the facts 
 therein stated. 
 
 Record of sales, Book No. 21. Report on Form 128. 
 
 b e'*'ente?ed°°o*n ^^^' ^^^"^^ ^^^'^ ^^J l^uds Sold, RS aforeSaid, are re- 
 record, deemed as heretofore provided, the collector shall make 
 entry of the fact upon the record mentioned in the pre- 
 ceding section, and the said entry shall be evidence of 
 such redemption. 
 
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ASSESSMENTS AWD COLLECTIONS. 127 
 
 Sec. 3205. Whenever any property, personal or real, sncceseive 
 which is seized and sold by virtue of the foregoing pro- mSrwh^nf '" 
 visions, is not sufficient to satisfy the claim of the United 
 States for which distraint or seizure is made, the col- 
 lector may, thereafter, and as often as the same may be 
 necessary, proceed to seize and sell, in like manner, any 
 other propeity liable to seizure of the person against 
 whom such claim exists, until the amount due from him, 
 together with all expenses, is fully paid. 
 
 Sec. 3206. The Commissioner of Internal lievenue Fees and 
 shall by regulation determine the fees and charges to be m-e'cases!" ^'^''^ -' 
 allowed in all cases of distraint and other seizures ; and 
 shall have power to determine whether any expense in-' 
 curred in making any distraint or seizure was necessary. 
 
 Kegula tlous, Ko. 2, revised ; T. D. 1373 ; T. D. 1521. 
 Sec. 3207. In any case wliere there has been a refusal , Proceedings in 
 
 . *^ ■...■, . cliancerv to sub- 
 
 or neglect to pay any tax, and it has become necessary ject real estate 
 to seize and sell real estate to satisfy the same, the Com- tax. ''''^'"®"' °* 
 missioner of Internal Revenue may direct a bill in chan- 
 cery to-be filed, in a district (or circuit) court of the 
 United States, to enforce the lien of the United States 
 for tax upon any real estate, or to subject any real es- 
 tate owned by the delinquent, or in which he has anj' 
 right, title, or interest, to the payment of such tax. All 
 persons having liens upon or claiming any interest in 
 the real estate sought to be subjected as aforesaid, shall 
 be made parties to such proceedings, and be brought 
 into court as provided in other suits in chancery therein. 
 And the said court shall, at the term next after the par- 
 ties have been duly notified of the proceedings, unless 
 otherwise ordered by the court, proceed to adjudicate 
 all matters involved therein, and finally determine the 
 merits of all claims to and liens upon the real estate in 
 question, and, in all cases where a claim or interest of 
 the United States therein is established, shall decree a 
 sale of such real estate, by the proper officer of the court, 
 and a distribution of the proceeds of such sale accord- 
 ing to the findings of the court in respect to the interests 
 of the parties and of the United States. 
 
 "The Judicial Code," act of March 3, 1911 (36 Stat., 
 1087), which went into effect January 1, 1912, abolished 
 circuit court.'? and imposed the powers and duties tliereof 
 on district courts. 
 
 The provision for suit in equity to enforce a lien for 
 taxes does not supersede the remedy by distraint, but is 
 cumulative (Blacklock v. United States, 208 U. S., 75, 
 affirming 41 Ct Cls., 89; Alkan v. Bean, 8 Biss., 83; 23 
 Int Eev, Kec, 351. ) 
 
 Bill under section 3207 to subject real estate to pa.vinent 
 of assessment on distilled spirits. (United States v. Ilinds- 
 kopf, 8 Biss., 507.) 
 
 Bill in equity to enforce li«n on distillery. (United 
 States V. Mackoy, 2 Dill., 229.) 
 
 The Government loses none of its reuiedifs to collect its 
 revenue unless there is an express repeal or abrogation of 
 some existing remedy.^. (18 Op. Atty.. Gen., 218.) 
 
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128 ASSESSMENTS AND COLLECTIONS. 
 
 to hay" d!l?e"of ^^^- ^^^^- [Amended by sec. 3, act of March 1, 1879 
 real estate ac- {20 Stat., 327).'] The Commissioner oi Internal Eeve- 
 t eTnaTreTCnue "UG shall have charge of all real estate which is now or 
 laws, etc. shall become the property of the United States by judg- 
 
 ment of forfeiture under the internal-revenue laws, or 
 which has been or shall be assigned, set off, or conveyed 
 by purchase or otherwise to the United States in pay- 
 ment of debts or penalties arising under the laws re- 
 lating to internal revenue, or which has been or shall be 
 vested in the United States by mortgage or other security 
 for the payment of such debts, and of all trusts created 
 for the use of the United States in payment of such debts 
 due them; and, with the approval of the Secretary of 
 the Treasury, may at public vendue, and upon not less 
 than twenty days' notice, sell and dispose of all real 
 estate owned or held by the United States as aforesaid; 
 and until such sale the Commissioner of Internal Reve- 
 nue, with the approval of the Secretary of the Treasury, 
 may lease such real estate owned as aforesaid on such 
 terms and for such period as they shall deem expedient. 
 And in cases where real estate has or may become the 
 property of the United States by conveyance or other- 
 wise, in payment of or as security for a debt arising 
 under the laws relating to internal revenue, and such 
 debt shall have been paid, together with the interest 
 thereon, at the rate of one per centum per month, to the 
 United States, within two years from the date of the 
 acquisition of such real estate ; it shall be lawful for the 
 Commissioner of Internal Revenue, with the approval 
 of the Secretary of the Treasury, to release by deed, or 
 otherwise convey such real estate to the debtor from 
 whom it was taken, or to his heirs or other legal rep- 
 resentatives. 
 
 Solicitor of tlie Treasury to have charge of real estate 
 owned by United States in certain cases. (Sec. 3750.) 
 
 Sec. 3470. At every sale, on execution, at the suit of the 
 United States, of lands or tenements of a debtor, the 
 United States may, by such agent as the Solicitor of the 
 Treasury shall appoint, become the purchaser thereof; but 
 in no case shall the agent bid in behalf of the United 
 States a greater amount than that of the judgment for 
 which such estate may be exposed to sale and the costs. 
 Whenever such purchase is made, the marshal of the dis- 
 trict in which the sale is held shall make all needful con- 
 veyances, assignments, or transfers to the United States. 
 
 Section 3470 does not apply to cases arising under the 
 internal-revenue laws. (To United States Attorney Strip- 
 ling, Oct. 8, 1898.) 
 
 Commissioner not authorized to take charge of lands 
 acquired in satisfaction of judgments recovered on the 
 official bonds of collectors of internal revenue. (16 Op. 
 Atty. Gen., 143.) 
 
 Real estate purchased by the Government is not subject 
 to State taxation after it has become the property of the 
 United States. (Van Brocklin r. State of Tennessee, 117 
 U. S., 15L) 
 
 Regulations Ko. 12, revised, page 35. 
 
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ASSESSMENTS AND COLLECTIONS. 129 
 
 Sec. 3209. Whenever a collector lias on any list duly ^.e^sent to'dis" 
 returned to him the name of any person not within his trier where the 
 collection district who is liable to tax, or of any person IfiT ^or\ IX 
 so liable who has, in the collection district in which he p™perty. , 
 resides, no sufficient property subject to seizure or dis 
 traint, from which the money due for tax can be col- 
 lected, such collector shall transmit a statement contain- 
 ing the name* of the person liable to such tax, with the 
 amount and nature thereof, duly certified under his 
 hand, to the collector of any district to which said person 
 shall have removed, or in which he shall have property, 
 real or personal, liable to be seized and sold for tax. 
 And the collector to whom the said certified statement is 
 transmitted shall proceed to collect the said tax in the 
 same way as if the name of the person and objects of 
 tax contained in the said certified statement were on any 
 list of his own collection district; and he shall, upon 
 receiving said certified statement as aforesaid, transmit 
 his receipt for it to the collector sending the same to him. 
 
 Sec. S210. The gross amount of all taxes and revenues be'^°pl'id°""into 
 received or collected by virtue of this title, or of any law Treasury daily. 
 hereafter enacted providing internal revenue, shall *be 
 paid, by the officers receiving or collecting the same, 
 daily into the Treasury of the United States, under the 
 instructions of the Secretary of the Treasury, without 
 any abatement or deduction on account of salary, com- 
 pensation, fees, costs, charges, expenses, or claims of 
 any description ; and a certificate of such payment, stat- 
 ing the name. of the depositor and the specific account on 
 M'hich the deposit was made, signed by the Treasurer, 
 assistant treasurer, designated depositary, or proper offi- 
 cer of a deposit bank, shall be transmitted to the Com- 
 missioner of Internal Eevenue: Provided, That in dis- 
 tricts where, from the distance of the officer, collector, 
 or agent receiving or collecting such taxes and revenues 
 from a proper Government depository, the Secretary of 
 the Treasury may deem it proper, he may extend the 
 time for making such payment, not exceeding, how- 
 ever, in any case a period of one month. 
 
 Model form of indorsement on certificates of deposit. 
 (T. D. 1779.) 
 
 Collectors can not deposit short to balance previous over- 
 deposit. (T. D. 2225.) . 
 
 Instructions relative to deposit of checks received. (T. 
 D. 2846.) 
 
 Sec. 1. [Act of May 10, 1916 (39 Stat., 66). -] 
 ***** 
 
 Collectors of internal revenue shall pay daily into ^^collections to 
 the Treasury of the United States, under mstructions mto the Treas- 
 of the Secretary of the Treasury, the gross amounts of "'?• 
 all collections of whatever nature, made by authority of 
 law (including sums offered in compromise under the 
 
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130 ASSBSSMEN-IS AITB COLLKCIIONS. / 
 
 provisions of section thirty-two hundred and twenfejr- 
 nine, Eevised Statutes, as well as all other money re- 
 ceived for which they are accountable under their re- 
 spective collection bonds required to be given under sec- 
 tion thirty-one hundred and forty-three, Eevised Stat- 
 utes), and the same shall be covered into the Treasury 
 as internal-revenue collections: Providied, That nothing 
 herein contained shall be construed as affecting the pro- 
 visions of subsection " D " of Section II, act of October 
 third, nineteen hundred and thirteen, in the matter of 
 withholding the normal income tax at the source. 
 Sec. 1. {Act of May 27, 1908 (35 Stat, S^S).] 
 * * * * * 
 
 Collectors to Collcctors of internal revenue shall render their rev- 
 
 retiuer accounts , 
 
 quarterly. enue accouuts quarterly. 
 
 See section 3216, p. 135. 
 
 Instructions to officers: Regulations No. 2, revised, p. 10; 
 
 Partial payment for special tax stamps. (T. D. 14&2.> 
 
 Deposit of collections. (T. D. 2332.) 
 
 The standard silver dollar and silver certificates! autlior- 
 ized by the act of February 28, 187S (20 Stat., 25), are 
 legal tender to any amount. Silver coins less than $1 
 * legal tender to amount of $10, act June 9, 1879 (21 Stat, 
 T). Gold coins (sec. 3511). Silver certificates far $1, $2, 
 and $5, act March S, 1887. (24 Stat., 515.) Standard 
 of value fixed— gold dollar. (Act March 14, 1900, 31 
 Stat, 45.) 
 
 An act relating to Hawaiian silver coinage and silver 
 certificates. (Act January 14, 1903, 32 Stat., 77a) 
 
 Miltenberger v. Cooke, 18 Wall., _^1, decided that a col- 
 lector in accepting a draft in paym'ent of a tax acts at his 
 own risk and does not bind the United States. 
 
 American Brewing Co. v. United States (33 Ct. Cls., 848). 
 
 Sec. §211. The Secretary of the Treasury is authorized 
 to designate one or more depositories in each State, for the 
 deposit and safe-keeping of the money collected by virtue 
 Depositories, of the internal-revenue laws ; and the receipt of the proper 
 officer of such depository to a collector for the money 
 deposited by him shall be a sufficient voucher for such col- 
 lector in the settlement of his accounts at the Treasury 
 Department. 
 
 See section 89, Criminal Code, p. 668. 
 
 Any form of exchange, which designated depositories vsdll 
 receive as cash. Issuing therefor certificates of deposit, under 
 the provisions of see. 3211, Revised Statutes, may be received 
 in payment of taxes. 
 
 Disposition of public funds. Regulations No. 2, revised. 
 
 Regulations for the deposit of public moneys. (Dept. Cir. 
 No. 105, December 27, 1917.) 
 
 Proper disposition of certificates of deposit. (Dept. CIr. 
 No. 12, April 17, 1913.) 
 
 recd^wf *!?? ^^* «/ ^«^^^ ^5 ^^^^ i'^6 'Stat., mS) . Tliat it shall be 
 taxes. lawful for collectors of customs and of internal revenue 
 
 to receive for duties on imports and internal taxes certi- 
 fied cheeks drawn on national and State banks, and trust 
 companies during such time and tinder such regulations 
 as the Secretary of the Treasury may prescribe. No per- 
 Digitized by Microsoft® 
 
ASSESSMENTS AND COLLECTIONS. 131 
 
 son, koweTer, who may be indebted to the United States 
 on account ofiduties on imports or internal taxes who shall 
 have tendered a certified check or checks as provisional 
 payment for such duties or taxes, in accordance with the 
 terms of this Act, shall be released from the obligation 
 to make iiltimate payment thereof until such certified 
 check so received has been duly paid; and if any such 
 check so received is not duly paid by the bank on which 
 it is drawn and so certifying, the United States shall, in 
 addition to its right to exact payment from the party 
 originally indebted therefor, have a lien for the amount 
 of such check upon all the assets of such bank ; and such 
 amount shall be paid out of its assets in preference to any 
 or all other claims whatsoever against said bank, except 
 the necessary costs and expenses of administration and the 
 reimbursement of the United States for the amount ex- 
 pended in the redemption of the circulating notes of such 
 bank, 
 
 (Dept. Cir. No. 11, March 27, 1913; T. D. 1990.) 
 Act of March 3, 1913 {37 Stat., 733) . It shall be lawful Authority t o 
 for collecting officers to receive certified checks drawn on ^"47 e:rtend«L 
 national and State banks and trust companies, during 
 such time and under such regulations as the Secretary of 
 the Treasury may prescribe, in payment for duties on 
 imports, internal taxes, and all public dues, including 
 special customs deposits; and the act of March second, 
 nineteen hundred and eleven, entitled " An act to author- 
 ize the receipt of certified checks for duties on imports 
 and internal taxes," is hereby amended accordingly. 
 
 Collectors may accept personal and uncertified checks, 
 drafts, etc., for collection only. If they elect, however, to 
 accept such forms of exchange in payment of internal- 
 revenue taxes, they do so at their own risk, and are re- 
 sponsble under their bonds for any loss that may occur by 
 reason of such acceptance. In no case can any expense 
 incident to cashing checks or other form of exchange be paid 
 by the Government. (T. D. 2158.) 
 
 Indorsement of certified checks by collector " without 
 recourse" not necessary. (T. D. 1916.) 
 
 Sec. 1010. \_Act of October 3, 1917 {Ifi Stat., 300). '\ ^^2^^^^';^\°l 
 That under the rules and regulations prescribed by the JincertmeTche^;k? 
 Secretary of the Treasury, collectors of internal revenue "me "i'nd wcei 
 may receive, at par and accrued interest, certificates of profits taxes. 
 indebtedness issued under section six of the Act entitled 
 " An Act to authorize an issue of bonds to meet expendi- 
 tures for the national security and defense, and, for the 
 purpose of assisting in the prosecution of the war, to ex- 
 tend credit to foreign governments, and for other pur- 
 poses," approved April twenty-fourth, nineteen hundred 
 and seventeen, and any subsequent Act or Acts, and 
 uncertified checks in payment of income and excess-profits 
 taxes, during such time and under such regulations as 
 the Commissioner of Internal Eevenue, with the approval 
 of the Secretary of the 5p|F/6#W^r^ia^^'^' ' ^^""^ '^ 
 
132 ASSESSMENTS AND COLLECTIONS. 
 
 a check so received is not paid by the bank on whieh it is 
 drawn the person by Avhom such check has bdten tendered 
 shall remain liable for the payment of the tax and for all 
 legal penalties and additions the same as if such check had 
 not been tendered. 
 
 Instructions relative to acceptance of uncertified checks. 
 (T. D. 2G27.) 
 
 Instructions relative to acceptance of certificates of In- 
 debtedness for income and excess profits taxes. (T. D. 
 2639.) 
 
 in^Med.lsf ani Sec. 1314. [Aci of February 24, 1919^ {W Stat., 1057) .] 
 
 uncertified checks That collectors may receivc, at par with an adjustment 
 
 t^xT^^paylbie for accrued interest, certificates of indebtedness issued by 
 
 rtamp. *'^" ''^ t^6 United States and uncertified checks in payment of 
 
 income, war-profits and excess-profits taxes and any other 
 
 taxes payable other than by stamp, during such time and 
 
 under such regulations as the Commissioner, with the 
 
 approval of the Secretary, shall prescribe ; but if a check 
 
 so received is not paid by the bank on which it is drawn 
 
 the person by whom such check has been tendered shall 
 
 remain liable for the payment of the tax and for all legal 
 
 penalties and additions the same as if such check had not 
 
 been tendered. 
 
 Regulations relative to authority of collectors. (T. Ds. 
 
 2851, 2973.) 
 
 Collectors' Sec. 3212. Evcry collector shall, at the expiration of 
 
 SeStf Mco?irts!' each month after he commences his collections, transmit 
 
 to the Commissioner of Internal Eevenue a statement of 
 
 the collections made by him within the month. And 
 
 every collector shall complete the collection of all sums 
 
 assigned to him for collection, and shall pay over the same 
 
 into the Treasury, and shall render his accounts to the 
 
 Treasury Department as often as he may be required. 
 
 See provisions of law in Appendix as to penalty for using 
 public funds, failing to render accounts, etc. 
 
 See section 12, act July 31, 1894, Appendix, pages 663, 665. 
 
 Collectors are required to render disbursing accounts 
 monthly and revenue accounts quarterly. (Act May 27, 
 1908, 35 Stat., 325.) 
 
 They will render accounts upon giving new bonds ; dis- 
 bursing account upon giving new disbursing officer's bond 
 and revenue account upon giving new collector's bond, and 
 final account upon separation from the service. 
 
 The Auditor for the Treasury Department shall receive 
 and examine all accounts for salaries and incidental ex- 
 penses of the ofiice of the Secretary of the Treasury, and aU 
 bureaus and offices under his direction, all accounts relating 
 to * ='■ * internal revenue * * *. (Sec. 7, act July 
 31, 1894 ; Supp., R. S., vol. 2, p. 213. " Dockery bill.") 
 
 Abstracts of collections and deposits to be prepared in 
 triplicate. (T. D. 1816.) - 
 
 fli,fs","''pe*r>aTti'e°! ^^^^ P^^^". ^^ f^'^^^^ ^^ .*^^ ^^^^ °^ ^^^ coUectors, in their 
 and ' forfeitures; respective districts, subject to the provisions of this title, 
 and for taxes. ^^ pi'osecute for the recovery of any sums which may be 
 forfeited by law. All suits for fines, penalties, and for- 
 feitures, where not otherAvise provided for, shall be 
 brought mi^rn^f /i)jfcfesd6f©ted States, in any proper 
 
ASSESSMENTS AND COLLECTIONS. 133 
 
 form of action, or by any appropriate form of proceeding, 
 qui tarn or otherwise, before any district court of the 
 United States for the district within which said fine, pen- 
 alty, or forfeiture may have been incurred, or before any 
 other court of competent jurisdiction; and taxes may be 
 sued for and recovered in the name of the United States, 
 in any proper form of action, before any circuit or dis- 
 trict court of the United States for the district within 
 which the liability to such tax is incurred, or where the 
 party from whom such tax is due resides at the time of 
 the commencement of the said action. 
 
 See sections 43 and 44, Judicial Code. 
 
 "The Judicial Code," act of Marcli 3, 1911 (36 Stat., 
 1087), which went into ettect January 1, 1912, abolislied 
 circuit courts and imposed the powers and duties thereof 
 on district courts. 
 
 See section 733, in Appendix, page 638; section 838, page 
 659 ; section 3164, page 94. 
 
 Suits for the recovery of taxes can be brought at any time, 
 M'hether the taxes have been assessed or not, and whether 
 they are assessable or not. (Dollar Savings Bank v. United 
 States, 19 Wall., 227 ; 19 Int. Rev. Rec, 89. King v. United 
 States, 99 U. S., 229. United States v. Little Miami Co. 
 and X. R. R. Co., 1 Fed. 700. United States v. Tilden, 9 
 Ben., 368; Fed. Cas. No. 16.519; 24 Int. Rev. Rec, 99; 
 T. D. 676.) 
 
 A common-law action of debt lies in favor of the Govern- 
 ment whenever by accident, mistake or fraud, taxes have 
 not been paid ; thus the Government may recover a personal 
 judgment for a tax whenever there exists a duty to pay, 
 provided another remedy has not been made exclusive by 
 clear and specific declaration. • (United States v. Nashville, 
 Chattanooga & St. Louis Railway, 249 Fed., 678; T. D. 
 2697.) 
 
 Suit to collect taxes ; no limitation binding upon the 
 United States. (United States v. Minneapolis Threshing 
 Machine Co., 229 Fed., 1019; T. D. 2285.) 
 
 Suits commenced in a criminal case on filing an indict- 
 ment ; in a civil case on filing a declaration. (T. D. 18941.) 
 
 A civil action upon a bond grows out of a contract. The 
 penal sum named in a bond is not a penalty within the 
 statute of limitations. (Raymond v. United States, 14 
 Blatchf., 451; Fed. Cas. No. 11596.) 
 
 Interest on taxes sued for runs from time taxes were 
 due. (United States v. Brie -Railroad, 106 U. S., 327; 29 
 Int. Rev. Rec, 58.) See Billings i-. United States, 232 
 U. S., 261. 
 
 Interest due under the general principle of law on the 
 subject. (Young v. Godbe, 15 Wall., 562. Bonnafon v. 
 United States, 14 Ct. Cls., 484.) 
 
 Partners civilly liable for violation of law committed by 
 copartner. (United States v. Thomasson, 4 Biss., 99; Fed. 
 Cas. No. 16478.) 
 
 Indictment — recovery of fines and penalties. (United 
 States V. Craft, 43 Fed., 374 ; 36 Int. Rev. Rec, 360. ) 
 
 A penalty may be recovered by indictment or by civil 
 action in the form of an action for debt. (Lees v. United 
 States, 1.50 U. S., 479. United States v. Foster, 2 Biss., 453 ; 
 19 Int. Rev. Rec, 5 ; Fed. Cas. No. 15142. ) But in case of 
 alternative punishment see United States v. Morin, 4 Biss., 
 93; Fed. Cas. No. 15810. 
 
 A penalty may be sued for in a civil action. (Stockwell 
 V. United States, 13 .Wall., 543.) 
 
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134 ASSESSMEISTTS AND COLLECTIONS. 
 
 Where the penalty is a fine on conviction or imprison- 
 ment or both, civil action of debt not the proper form ojC 
 action. (United States v. Claflin, 97 U. S., 546.) 
 
 The term penalty involves the idea of punishment and 
 its character is not changed by the mode in which it is 
 inflicted, whether by civil action or a criminal prosecution. 
 (United States v. Chouteau, 102 U. S., 60S; 2T Int. Rev. 
 Eec, 49.) 
 
 Cumulative penalties. (Case of Leszynsky, 25 Int. Rev. 
 Rec, 71; Fed. Cas. No. 8279.) 
 
 A judgment in a criminal case must conform to the re- 
 quirements of the statute, and any variation therefrom, 
 either in the character or extent of the punishment in- 
 flicted, avoids the judgment. (Woodruff r. United States, 
 58 Fed., 768.) 
 
 A court has no authority to impose a fine only in a case 
 where the law requires fine and imprisonment. (United 
 States V. Braun and Fitts, 158 Fed., 456. ) 
 
 It was held by the Supreme Court in ex parte Karstendlck 
 (93 U. S., 306) that in cases where the statute makes hard 
 labor a part of the punishment it is imperative upon the 
 court to include that in the sentence. (In re Johnson, 46 
 Fed., 481.) 
 
 All participants in misdemeanors are liable as prin- 
 cipals. (United States v. Sykes, 58 Fed., 1000. United 
 States r. AVhite & Paller, T. D. 1334.) 
 
 Section 332 of the act of March 4, 1909 (35 Stat., 1152), 
 Criminal Code. — Whoever directly commits any act consti- 
 tuting an offense defined in any law of the United States, 
 or aids, abets, covinsels, commands, induces, or procures its 
 commission, is a principal. 
 
 Felonies defined. ( See p. 642. ) 
 
 Suite for ta^^s, Sec. 3214. Xo suit for the recovery of taxes, or of any 
 brought without fine, penalty, or forfeiture, shall be commenced unless 
 ^issioner?* "^"^ the Commissioner of Internal Revenue authorizes or 
 sanctions the proceedings: Provided, That in case of any 
 suit for penalties or forfeitures brought upon informa- 
 tion recei^^ed from any person, other than a collector or 
 deputy collector, the United States shall not be subject 
 to any costs of suit. 
 
 Section 969, Appendix, page 646, has a similar provision 
 to that contained in the above proviso. 
 
 Circular 319, relative to suits for taxes (34 Int. Rev. 
 Rec, 333) ; Circular 331, relative to suits for taxes, June 
 21, 1889 (35 Int. Rev. Rec, 197). 
 
 Right of the United States to sue for taxes. Set-offs 
 growing out of Independent claims can not be pleaded. 
 (United States r. Pacific R. R., 4 Dill., 66; Fed. Cas. No. 
 15983; see sec. 951, p. 685.) 
 
 A party claiming a credit \^hich was not presented to 
 the accounting officers of the Treasury can not set it u[j 
 in an action brought by the United States against him for 
 the recovery of a debt. (Railroad Co. r. United States, 
 101 U. S., 543 ; 26 Int. Rev. Rec, 165.) 
 
 to^uitf''fo?"''ot- ^^*^' 3215. It shall be the duty of the Commissioner of 
 
 eminent oj offi- Internal Revenue, with the approval of the Secretary of 
 
 '^'''^' the Treasury, to establish such regulations, not incon- 
 
 .sistent with law, for the observance of revenue officers, 
 
 district attorneys, and marshals, respecting suits arising 
 
 under the internal-re^'enue laws in which the United 
 
 States is a party, as may be deemed necessary for the just 
 
 Digitized by Microsoft® 
 
ASSESSMENIS, AND COLLECTIOHS. 135 
 
 responsibility of tkose oiRcers and the prompt collection 
 of all revenues and debts due and accruing to the United 
 States under such, lasvs. 
 
 Regulations No. 12, revised. 
 
 Tlie Solicitor of the Treasury is autliorized to establish 
 regulations for the observance of district attorneys aaa 
 marshals in suits in which the United States is a party, 
 otlier than those arising under tlie internal-revenue laws. 
 (Sees. 317 and 37&, R. S.) 
 
 Duties of district attorneys as to prosecutions, etc., sec- 
 tion 838, E. S., Appendix, p. 659.) 
 
 Emty of eolleetors to look after suits. (1. D. 702.) 
 
 United States, attorneys are instructed that there should 
 be no unnecessary delay in proceedings to enforce collection 
 of judgments. (T. D. 348, May 23, 1901.) 
 
 Sec. 3216. AH judgments and moneys recovered or re- Moneys recov- 
 ceived for taxes, costs, forfeitures, and penalties, shall be I'^^^^l^ ^"o''%\" 
 paid to collectors as internal taxes are required to be lectors. 
 paid. 
 
 The gross amount ef all moneys received for the use of 
 the United States ia required to be paid by the officer or 
 agent receiving the same into the Treasury at as early a 
 day as practicable, without any abatement or deduction 
 on account of salary,, fees, costs, charges, expenses, or 
 claim of any flescription. whatever. (Sec. 3617, p. 662, Ap- 
 pendix. See also sec. 3210, p. 129, and act of May 27, 
 1908, p. 130.) 
 
 See section 3621, as amended by act of May 28, 1896, 
 page 6^. 
 
 Instructions to clerks of courts as to disposition of 
 moneys in the registry of the court. (Regulations No. 
 12, revised, p. 21.) 
 
 Instructions to attorneys, clerks, etc., by the Department 
 of Justices 1916. (T. D. No. 754.) 
 
 Moneys recovered on forfeited recognizances or bail 
 bonds are not classed as internal-revenue moneys and 
 should be paid into the Treasury by the clerk of court 
 and not tui-ned over by him to the collector of Internal 
 revenue. (See Digest of Opinions of Solicitor of the 
 Treasury, 1885-1903, p. 240.) 
 
 Taxed costs payable to the collector. (United States v. 
 Wolters, 51 Fed., 896.) 
 
 Costs, as well as all other moneys collected in cases aris- 
 ing under the internal-revenue laws, are required by the 
 law to be paid over by the court clerks to the collectors of 
 the districts in which these cases arise. (T. D. 19306.) 
 See notes imder-«ection 797, as amended, p. 660. 
 
 Sec. 321T. Wlien any collector fails either to collect p^^g ^^^^ ^^ 
 or to render his account, or to pay over in the manner or Hnquent coiiect- 
 within the times provided by law, the (First) Comp- "a by ^dfstraint 
 troller of the Treasury shall, immediately after evidence """^ ^^''^• 
 of such delinquency, report the same to the Solicitor of 
 the Treasury, who shall issue a warrant of distress 
 against such delinquent collector, directed to the mar- 
 shal of the district, expressing therein the amount Avith 
 which the said collector is chargeable, and the sums, if 
 any, which have been paid over by him, so far as the 
 same are ascertainable. And the said marshal shall, 
 himsell, or by his deputy, immediately proceed, to levy 
 
 and collect the sum which . may remain due, with five 
 
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,136 ASSESSMENTS AND COLLECTIONS. 
 
 per-centum thereon, and all the expenses and charges of 
 collection, by distress and sale of the goods and chattels,, 
 or any personal effects of the delinquent collector, giv- 
 ing at least five days' notice of the time and place of 
 sale, in the manner provided by law for advertising sales 
 of personal property on execution in the State wherein 
 such collector resides. And the bill of sale of the officer 
 of any goods, chattels, or other personal property, dis- 
 trained and sold as aforesaid, shall be conclusive evi- 
 dence of title to the purchaser, and prima-facie evidence 
 of the right of the officer to make such sale, and of the 
 correctness of his proceedings in selling the same. And 
 for want of goods and chattels, or other personal effects 
 of such collector, sufficient to satisfy any warrant of dis- 
 tress, issued as aforesaid, the real estate of such collec- 
 tor, or so much thereof as may be necessary for satisfy- 
 ing the said warrant, after being advertised for at least 
 three weeks next before the time of sale, in not less 
 than three public places in the collection district, and in 
 one newspaper printed in the county or district, if any 
 there be, shall be sold at public auction by the marshal 
 or his deputy. Upon such sale, the marshal shall make 
 and deliver to the purchaser of the premises sold a deed 
 of conveyance thereof, to be executed and acknowledged 
 in the manner and form prescribed by the laws of the 
 State in which said lands are situated, and said deed so 
 made shall invest the purchaser with all the title and in- 
 terest of the defendant named in said warrant, existing 
 at the time of the seizure thereof. And all moneys that 
 may remain of the proceeds of such sale of personal or 
 real property, after satisfying the said warrant of dis- 
 tress, and paying the reasonable costs and charges of 
 sale, shall be returned to the proprietor of the property 
 sold as aforesaid. 
 
 See sections 3624 and 3625, in Appendix, p. 666, a& 
 to proceedings against officers failing to account for public 
 moneys. 
 
 * * * The First Comptroller of the Treasury shall here- 
 after be known as Comptroller of the Treasury. ' 
 
 He shall perform the same duties and have the same 
 powers arid responsibilities (except as modified by this act) 
 as those now performed by or appertaining to the First and 
 Second Comptrollers of the Treasury and the Commissioner 
 of Customs ; an^ all provisions of law not inconsistent with 
 this act, in any way relating to them or either of them, shall 
 hereafter be construed and held as relating to the Comp-' 
 troller of the Treasury. * * * (Sec. 4, act July 31, ISGir- 
 Supp., R. S., vol. 2, p. 218.) :: — _ 
 
 Collectors to be Sec. 3218. Evcry collector shall be charged with the 
 charged with, ^^hole amount of taxes, whether contained in lists trans-' 
 mitted to him by the Commissioner of Internal Revenufe, 
 or by other collectors, or delivered to him by his predeces- ' 
 sor in office, and with the additions thereto, with the par 
 value of . ail stamps deposited with him, and with all 
 moneys co^e^^ed^^r u;^nakjeyorfeitures, fees, or costs; 
 
ASSESSMENTS AND COLLECTIONS. 
 
 137 
 
 and he shall be credited with all payments into the Treas- 
 ury made as provided by law, with all stamps returned by 
 him uncanceled to the Treasury, and with the amount of 
 taxes contained in the lists transmitted in the manner 
 heretofore provided to other collectors, and by them re- 
 ceipted as aforesaid; also with the amount of the taxes 
 of such persons as may have absconded, or become insol- 
 vent, prior to the day when the tax ought, according to 
 the provisions of law, to have been collected, and with all 
 uncollected taxes transferred by him or by his deputy act- 
 ing as collector to his successor in office : Provided, That 
 it shall be proved to the satisfaction of the Commissioner 
 of Internal Revenue, who shall certify the facts to the 
 (First) Comptroller of the Treasury, that due diligence Due dUigeme, 
 was used by the collector. And each collector shall also 
 be credited with the amount of all property purchased by 
 him for the use of the United States, provided he faith- 
 fully account for and pay over the proceeds thereof upon 
 a resale of the same as required by law. 
 
 See note under section 3217 as to change from First Comp- 
 troller to Comptroller. 
 
 Claims for credit. (Sec. 951, p. 685, Appendix.) 
 
 Certificate of due diligence condition precedent to allow- 
 ance of credit. (United States r. Kimball, 101 U. S., 720.) 
 
 Question of due diligence and other questions relative to 
 collectors' accounts considered. (United States v. Barton 
 Able, 15 Int. Rev. Rec, 41, 50; Fed. Cas. No. 14417.) 
 
 Claims for credit for stamps issued in accordance with 
 notice of accepted offers in compromise should be made on 
 Foi-m 030. Regulations Xo. 2, revised, p. 30. (T. Ds. 1399, 
 1565.) 
 
 Fractions of a cent should never be entered in the records 
 of daily receipts. (T. D. 289, 1901.) 
 
 See section 3444, page 588, articles in bonded wf.rehouses. 
 
 Sec. 3219. In case of the death, resignation, or removal Death, etc., of 
 of any collector, all lists and accounts of taxes uncollected fected toianceB! ' 
 shall be transferred to his successor in office as soon as 
 such successor is appointed and qualified, and it shall be 
 the duty of such successor to collect the same. 
 
 Sec. 3220. {Amended ~by sec. 1316 (a), act of Fclru- ,e,^Xg'°° ^o\ 
 cry 2Jf, 1919 {Ifi Stat., 10-57) .] The Commissioner of In- taxes, penalties, 
 ternal Revenue, subject to regulations prescribed by the ^*''' 
 Secretary of the Treasury, is authorized to remit, refund, 
 and pay back all taxes erroneously or illegally assessed 
 or collected, all penalties collected without authority, 
 and all taxes that appear to be unjustly assessed or exces- 
 sive in amount, or in any manner wrongfully collected; 
 also to repay to any collector or deputy collector the full 
 amount of such sums of money as may be recovered 
 against him in any court, for any internal revenue taxes 
 collected by him, with the cost and expenses of suit ; also 
 all damages and costs recovered against any assessor, as- 
 sistant assessor, collector, deputy collector, agent, or in- 
 spector, in any suit brought against him by reason of 
 anything done in the due., performance oL his official 
 duty, and shall make re]fi(9^'^tk|?^s^^Plm beginning 
 
138 ASSESSMENTS AND (30LLECTI0NS. 
 
 of each regular session oi Congress of alL transactions 
 itader this section. 
 
 See section. 98&, page 654, as to certificate of probable 
 cause. 
 
 Abatements and refunding may also be made to distillers 
 in cases of unavoidable accident or misunderstanding. 
 (Sec. 6, act March 1, 1879, p. 142.) 
 
 The filing of claim for abatement does not operate as a 
 stay in serving notice and demand in order to perfect tax 
 lien. (T. D. 1995.) 
 
 An appeal to the Commissioner for retvirn of the tax is 
 a condition precedent to a suit for recovery of the tax. 
 (Cheatham r. United States, 92 V. S., 85; 22 Int. Rev. 
 Rec, 30.) 
 
 The Government has provided a complete system of 
 corrective justice in regard to all taxes imposed, founded 
 upon the idea of appeals within the executive departments. 
 (United States v. Pacific Railroad, 4 Dill., 66; Fed. Cas., 
 Ko. 15983.) 
 
 The Commissioner possesses no equity power in cases 
 of abatement. If the tax is a legal one, the Commissioner 
 can not abate it. (Decision No. 180, 36 Int. Rev. Rec, 13.) 
 
 A rejected claim may be prosecuted against the collector, 
 and an allowed claim not paid may be sued for in the 
 Court of Claims. (United States r. Real Estate Savings 
 Bank, 104 U. S. (14 Otto), 728; 28 Int. Rev. Rec, 87.) 
 
 "When the Commissioner of Internal Revenue has ren- 
 dered a decision allowing a claim, and has issued his cer- 
 tificate accordingly, but payment is refused by the account- 
 ing officer, the claimant is entitled to recover in a suit 
 in the Court of Claims. (Kaufman r. United States, 96 
 U. S., 567, affirming 11 Ct. Cls., 659; 24 Int. Rev. Rec, 
 135.) 
 
 Protest. — It is a principle universally recognized that an 
 action in a court can not be maintained for the recovery 
 back of money paid in discharge of a tax illegally assessed, 
 unless the pajnnent was made under protest. But that 
 principle has been held by the Commissioner of Internal 
 Revenue and other officers of the department as too tech- 
 nical and too exacting for application to claims for refund 
 of taxes under this section. (Real Estate Savings Bank 
 V. United States (1880), 16 Ct. Cls., 335; 27 Int. Rev. 
 Rec, 154.) 
 
 No written notice of protest required. (Wright ■!■. 
 Blakeslee, 101 U. S., 174; 26 Int. Rev. Rec, 179.) 
 
 Rule as to protest. (Clieseb rough v. United States, 192 
 V. S., 253; T. D. 747; United States r. New York and 
 Cuban Mail Steamship Co., 200 U. S., 488; 25 Op. Atty. 
 Gen., 605; 26 Id., 472.) 
 
 Protest. (Abrast Realty Co. t\ Maxwell, 206 Fed., 333; 
 Beer v. MofEatt, 192 Fed., 984.) 
 
 What may constitute dnress. (Cambria Steel Co. v. 
 McCoach, 225 Fed., 278.) 
 
 ^'olnntary payment. (Railroad Co. r. Commissioners, 
 98 U. S-, 541.) 
 
 Though there is some conflict in the dicta of the Su- 
 preme Court, the true doctrine is that, when taxes are paid 
 under protest or with notice that the payer contends that 
 they are illegal and intends to institute .suit to compel 
 their repayment, a sufficient foundation for suit to recover 
 has been established. (Herold v. Kahn (1908), 159 Fed., 
 608.) 
 
 The apprehension of being stopped in business is suffi- 
 cient duress to make payments involuntary. (Swift Co. v.. 
 United States, 111 U. S., 22.) 
 
 /wigj/gsJ/Tgac^tecJ^iySteJ^gi/j^s not pay interest on any 
 claim wnicli is due, because it is supposed to be always 
 
ASSESSMENTS AND COLLECTIONS. 139 
 
 ready to pay. (Stephani's Case, 1 Lawrence Dee., 35; 26 
 Int. Rev. Rec., 313.) 
 
 It is a well-settled principle that Interest Ls not allowed 
 on claims against tlae United States unless the Government 
 lias stipulated to pay interest, or it is given by express 
 statutory provision. (Angarlca r. Bayard, 127 U. S., 260 ; 
 United States r. New York, 160 U. S., 619; 7 Op. Attv. 
 Gen., 523; 9 Id., 57, 449. See sees. 963, 966, Appendix, 
 p. 619. ) 
 
 Where an illegal tax has been collected, the citizen who 
 has paid it, and has been obliged to bring suit against the 
 collector, is entitled to interest, in the event of recovery, 
 from the time of the illegal exaction. (Erskiue •!■. Van 
 Arsdale, 15 Wall., 75; Conant v. Kinney (1908), 162 Fed., 
 581; 166 Fed., 720; Penn. Co., etc., v. McClain, 105 Fed., 
 367; 108 Id., 618; Klock Produce Co. v. Hartson, 212 Fed., 
 758. 
 
 When a person accepts from the Government, without 
 objection, payment of the sum illegally exacted, he gives 
 up his right to sue for interest. (Stewart r. Barnes, 153 
 U. S., 456.) 
 
 Law relative to interest in suits against collectors re- 
 viewed. (Commissioners of Sinking Fund of Louisville 
 V. Buckner, 48 Fed., 533.) 
 
 Where Interest was allowed only from commencement of 
 suit. (Burrough v. Able, 105 Fed., 366.) 
 
 The Government is not liable for interest after final 
 judgment. United States ex rel. r. John Sherman, 98 
 U. S., 567; 25 Int. Rev. Rec, 198; Schell v. Cochran, 107 
 U. S., 626.) 
 
 Interest allowed from date of payment to date of final 
 judgment. (VIII Compt. Dec, 776.) 
 
 In an action against the collector for recovery of taxes 
 illegally exacted interest is recoverable without any 
 statute to that effect. (State Line S. R. Co. i: Davis, 
 228 Fed., 246, 250.) 
 
 Interest not allowed' on judgment against collectors. 
 (21 Compt. Dec, 180.) 
 
 Interest can not be awarded against the United States 
 without legislative warrant. (Treat r. Farmers' Loan 
 and Trust Co., 185 Fed., 760.) This does not apply to suit 
 against collectors for recovery of taxes. (NatL Home v. 
 Parrlsh, 229 U. S., 496.) 
 
 Action against collector to recover taxes and penalties 
 paid under protest is not action against United States, until 
 after final judgment and certificate of probable cause from 
 trial court, when it becomes claim against United States, 
 prior to which time plaintiff may recover interest, unless 
 review of judgment by an appellate court is obtained, in 
 which event judgment on mandate of the appellate court 
 will be treated as final judgment. (Klock Produce Co. v. 
 Hartson, 212 Fed., 758.) 
 
 Cladms for refund. — Powers conferred upon the commis- 
 sioner relative to refund of taxes. (Barnett et al. v. 
 United States, 16 Ct. Cls., 515; VIII Comp. Dec, 85.) 
 
 If an appeal is taken from an assessment and decided 
 against the appellant, and the tax is afterwards collected, 
 it is not necessary to take a second appeal after payment 
 before commencing suit to recover the tax. (San Fran- 
 cisco Savings Society r. Gary, 2 Sawy., 393; 17 Int. Rev. 
 Rec, 109; Fed. Cas. No. 12317.) 
 
 No claim for refund necessary when abatement claim 
 has been made and considered upon its merits. (De Bary 
 V. Dunne, 162 Fed., 961; Schwartzchlld & Sulzberger Co. 
 V. Rucker, 143 Fed., 656; T. D., 974; Grier v. Tucker, 150 
 Fed., 657; Cureton v. Rucker (N. D. of Georgia), T. D., 
 1293; contra, HaatmgDigiUmidltiyiMiCff'ei.Olt®.) 
 
140 assessm:!^nts and collections. 
 
 Appeals for refund of taxes should be presented through 
 collectors within two years after the tax is paid. Presenta- 
 tion to collector is equivalent to presentation to the Commis- 
 sioner. (Real E.state Savings Bank r. The United States, 
 16 Ct. Cls., 335 ; 27 Int. Rev. Rec, 153 ; 104 U. S., 728 ; 28 
 Int. Rev. Rec, 27.) 
 
 Ko authority to remit 50 per cent penalty unless illegally 
 collected. (VI Comp. Dec, 763; 8 Id., 670.) 
 
 The words " wrongfully collected " do not give jurisdiction 
 for refunding further than the word " illegally." Xo equity 
 powers conferred on the Commissioner of Internal Revenue. 
 (Ridg^vay Case, 16 Op. Atty. Gen., 667.) 
 
 Commissioner authorized, not obliged, to refund. (13 Op. 
 Atty. Gen., 439.) 
 
 Right of Commissioner to reconsider claim for refund and 
 revoke allowance before payment. (Ridgway v. United 
 States, 18 Ct. Cls., 707; 29 Int. Rev. Rec, 197.) 
 
 What constitutes a final award bv the Commissioner. 
 (Stotesbury v. United States, 23 Ct. Cls., 285; 34 Int. Rev. 
 Rec, 142; 146 U. S., 196.) 
 
 Right of Commissioner to refund, notwithstanding advice 
 of Secretary to the contrary. (Sybrandt v. United States, 
 19 Ct. Cls., 461 ; 30 Int. Rev. Rec, 135.) 
 
 Procedure for claims for refund and abatement. (T. 
 D. 26.54.) 
 
 Procedure as to claims relating to taxes on distilled 
 spirits, fermented liquors and wines. (T. D. 2926.) 
 
 Reopening claims. — Reopening rejected claims for refund- 
 ing. (14 Op. Atty. Gen., 275; 18 Int. Rev. Rec, 28.) 
 
 The Commissioner is not precluded from allowing a claim 
 for refund, because a former Commissioner has rejected a 
 claim for abatement. (IX Comp. Dec, 3.54.) 
 
 The Commissioner is authorized to reconsider and allow a 
 claim which he had, through error of law, previously re- 
 jected. (XI Comp. Dec, 676.) 
 
 Reconsideration of claim for taxes after judgment. (25 
 Op. Atty. Gen., 605.) 
 
 Any public officer in an executive department may correct 
 his own errors and open, reconsider, or reverse any case 
 decided by himself. (Rollins and Presbrey r. United States, 
 23 Ct. Cls., 106.) 
 
 Ladies of officers. — United States not liable for unauthor- 
 ized wrongs done by revenue officers. (United States v. 
 Cummings; appeal from Court of Claims, 35 Int. Rev. 
 Rec, 142 ; 130 U. S., 4.53 ; Thierman & Frost r. United States, 
 51 Ct. Cls., 35.) 
 
 The general principle is that the Government can not be 
 held liable for unauthorized wrongs inflicted by officers, 
 though occurring while they are engaged in the discharge of 
 official duties. (Joel Mann r. United States, 32 Ct. Cls., 
 581 ; Christie-Street Commission Co. v. United States, 129 
 Fed., 506.) 
 
 Errors in assessment in favor of plaintiff in action 
 against collector to recover taxes erroneously assessed and 
 paid may also be corrected, the United States not being 
 affected by any estoppel which might affect officer making 
 assessment. (New York Life Ins. Co. v. Anderson, 257 Fed., 
 576.) 
 
 Informal claims. — An application for the refund of taxes, 
 though informal or defective, may be regarded as a claim, 
 so far at least as to be a foundation for an amendment. (14 
 Op. Atty. Gen., 615.) 
 
 Where a distiller in consequence of the destruction of the 
 stamp is forced to affix a new one, the Commissioner, on 
 proof of these facts, may direct the price of the second 
 stamp, or rather the tax thus a second time exacted, to be 
 retuM^tiz^tkb^iMoit^Si^^ 574.) 
 
ASSESSMENTS AND COLLECTIONS. 141 
 
 The Commissioner has no authority to refund to a surety 
 on a distiller's bond who has paid a judgment recovered 
 against him thereon the amount of such judgment, when the 
 tax upon which this recovery was had was not illegally 
 assessed, and the only claim for refund is founded on the 
 allegation that the surety was not liable therefor on his 
 bond. (Seat v. United States, 18 Ot. Cls., 458.) 
 
 Refund to a surety who paid the tax, (VII Comp. Dec, 
 361.) 
 
 Finalif!/ of decisions. — Where the Commissioner of In- 
 ternal Revenue, in a case within the scope of his authority 
 and jurisdiction, has ordered a refund, a court can not 
 inquire as to the sufficiency of the evidence before him. 
 (Woolner v. United States, 13 Ct Cls., 3.55; 24 Int. Rev. 
 Rec, 181.) 
 
 Neither the Comptroller of the Treasury nor any account- 
 ing officer has authority to review the Commissioner's de- 
 cision. (Bank of Greencastle v. United States, 15 Ct. Cls., 
 225; 26 Int. Rev. Rec., 126.) 
 
 Decisions by the Commissioner of Internal Revenue, in 
 cases of refunding taxes, are binding, and, in the absence of 
 fraud or mistake in calculation, not subject to revision. 
 (Dugan V. United States, 34 Ct. Cls., 458 ; T. D. 21285. See 
 also Davidson v. United States, 21 Ct. Cls., 298; Nixon v. 
 United States, 18 Ct. Cls., 448 ; 29 Int. Rev. Rec, 157 ; Louis- 
 ville V. United States, 31 Ct. Cls., 1; Edison, etc., Co. v. 
 United States, 38 Ct. Cls., 208.) 
 
 When a particular authority is confided to a public offi- 
 cer, to be exercised by him in his discretion upon an exami- 
 nation of facts of which he is made the judge, his decison 
 upon the facts Is, in the absence of any controlling pro- 
 vision of law, absolutely conclusive as to the existence of 
 those facts. (Allen v. Blunt, Fed. Cas. No. 215 ; 3 Story, 
 C. C, 745 ; cited with approval in United States v. Wright, 
 11 Wall., 648.) 
 
 An allowance by the Commissioner under this section of 
 a claim for refund of taxes erroneously collected is con- 
 clusive as to the facts upon which the allowance is made, 
 but not as to questions of law arising therein. (XI Comp. 
 Dec, 2.59.) 
 
 Where the statute intrusts a public officer with, a desig- 
 nated duty the exercise of his discretion in performing 
 that duty can not be reviewed if he acts within the gen- 
 eral scope of his authority. (Plummer v. United States, 
 24 Ct. Cls., 517.) 
 
 The decision of the Commissioner not final when based 
 on the construction of a statute. (The American West 
 Indies Trading Co. v. United States, 45 Ct. Cl,s., 488.) 
 
 In any assessment or collection growing out of the re- 
 gauging of spirits an appeal lies to the Commissioner. The 
 Commissioner's functions are judicial and his decision 
 final. (Corning & Co. v. United States, 34 Ct. Cls., 271.) 
 
 Judgments against collectors. — Under section 3220 the 
 Commissioner is authorized to pay to the plaintifE the 
 amount o-f a judgment recovered against a collector of 
 internal revenue for damages for a seizure of property 
 for an alleged violation of the internal-revenue laws, and 
 is not restricted to the payment of such amount to the 
 collector. Judgment may be paid without certificate of 
 probable cause. (United States v. Frerichs, 124 U. S., 
 315; 34 Int. Rev. Rec, 39.) 
 
 Accounts for judgments against collectors, appropria- 
 tion necessary for payment. (VII Comp. Dec, 471.) 
 
 A judgment against a collector may be paid to the 
 claimant or to the collector. (34 Int. Rev. Rec, 39.) 
 
 Regulation relative to transmitting claims for refund to 
 Secretary. (Dupasseu£)/g[/fciflfife6)SMte«^PS®M) Cls., 1.) 
 
142 ASSESSMENTS AND COLLECTIONS. 
 
 As to suits to enforce allowances. (Boehm t?. United 
 States, 21 Ot. Cls., 290.) 
 
 Various acts of Congress relative to refund commented 
 upon. (White v. Arthur, 10 Fed., 80.) 
 
 Revenue officers forbidden to furnish unauthorized cer- 
 tificates in support of claims. (T. D. 2443.) 
 
 Circular No. 174, dated October 30, 1877, relative to the 
 taking of additional testimony in support of claims for 
 abatement or refund of taxes. 
 
 The filing of a claim for the abatement of a tax alleged 
 to have been erroneously assessed does not operate as a 
 suspension of the collection of the tax. (Regtilations No. 
 14, revised, p. 16.) 
 
 Attorneys duly registered in the Treasury Department, 
 and filing powers of attorney, will be recognized in the 
 prosecution of refunding claims. (T. D. 159.) 
 
 Taxes due can not be recovered back on account of 
 irregularity in collection. (Schafer v. Craft, 144 Fed., 
 907.) 
 
 Refund of portion of amount accepted in compromise 
 in certain income-tax cases. (T. D. 2175.) 
 
 An act directing a refund and appropriating a specific 
 sum is conclu,sive on accounting officers. (United States v. 
 Louisville, 169 U. S., 249; 31 Ct. Cls., 1.) 
 
 Procedure under which collectors are authorized to re- 
 fund excessive payments of internal-revenue tax. (T. D. 
 2688.) 
 
 accfderteiiy''de- ^^'^- ^^^l' 14'^nded ly sec. 6, actj>f March 1, 1879 
 
 stroyed. {20 Stat.,S27) 
 
 production to 
 
 The Secretary of the Treasury, upon the 
 lim of satisfactory proof of the actual 
 destruction by accidental fire or other casualty, and with- 
 out any fraud, collusion, or negligence of the owner 
 thereof, of any distilled spirits, while the same remained 
 in the custody of any officer of internal revenue in any 
 distillery warehouse, or bonded warehouse of the United 
 States and before the tax thereon has been paid, may 
 abate the amount of internal taxes accruing thereon, and 
 may cancel any warehouse bond, or enter satisfaction 
 thereon, in whole or in part, as the case may be. And 
 if such taxes have been collected since the destruction of 
 said spirits, the said Secretary shall refund the same to 
 the owners thereof out of any moneys in the Treasury 
 not otherwise appropriated. And when any distilled 
 spirits are hereafter destroyed by accidental fire or other 
 casualty, without any fraud, collusion, or negligence of 
 the owner thereof, after the time when the same should 
 have been drawn off by the ganger and placed in the dis- 
 tillery warehouse provided by law, no tax shall be col- 
 lected on such spirits so destroyed, or if collected, it shall 
 be refimded upon the production of satisfactory proof 
 that the spirits were destroyed as herein specified. 
 
 This section provides allowance for loss by accidental fire 
 or other unavoidable accident when the manufacture of 
 spirits has been completed and they are destroyed before 
 being drawn off and carried into the distillery warehouse 
 and when the whisky is destroyed in the distillery ware- 
 house. 
 
 Section 8, act of May 28, 1880 (p. 265), releases the dis- 
 tiller from the payment of tax upon spirits destroyed by 
 accident while in the process of manufacture. 
 Digitized by Microsoft® 
 
ASSESSMENTS AND COLLECTIONS. 143 
 
 If the spirits are removed from a cUstillery w'urehouse to a 
 manufactnrer's warehouse, and are lost in the course of such 
 removal, section 15, of the act of May 28, 1880, provides for 
 remission of the tax. (p. 610.) 
 
 A similar provision is made where spirits are removed 
 from a distillery warehouse for export. (Act December 20, 
 18T9-, p. 285.) 
 
 I Spirits lost while in transit to a general bonded ware- 
 house. (Greenbrier Distillery Co. v. Johnson, 88 Fed., 638.) 
 
 This section applicable to brandy stored in special bonded 
 warehouses. (Sec. 5, act March 3, 1877, p. 691.) 
 
 Secretary Manning's construction of the law relative to 
 abatement of tax on spirits, said to have been lost from 
 packages in warehouse. (31 Int. Kev. Ree., 189.) 
 
 Allowance for loss in warehouse. (Circ. No. 625; sec. 50, 
 act August 27, 1894, p. 244; act March 3, 1899, pp. 245, 246.) 
 
 Leakage not casualty. (Revised ruling of the department 
 May 25, 1894, giving historical review of the laws ; 40 Int. 
 Rev. Rec, 173.) 
 
 The collapse of a barrel filled with whisky from the 
 pressure of other barrels superimposed upon it is not a 
 casualty within the meaning of the law. (Letter from 
 Secretary of the Treasury to Commissioner Internal Rev- 
 enue, July 24, 1894; 40 Int. Rev. Rec, 237.) 
 
 " Casualty " means an accident ; an event not to be fore- 
 seen or guarded against. Excessive and unusual summer 
 heat is not a casualty, neither are undiscovered worm holes 
 in whisky barrels a casualty within the meaning of this 
 section. (Crystal Springs Distilling Co. v. Cox, circuit 
 court Kentucky, 1891; 47 Fed., 693; 37 Int. Rev. Rec, 328.) 
 Decision affirmed, circuit court of appeals, 1892. (49 Fed., 
 555.) 
 
 Unavoidable casualty signifies events or accidents which 
 human prudence, fofe^ight, and sagacity can not prevent. 
 (Wells V. Castees, 3 Gray, 325.) 
 
 Proof required in cases of destruction of distilled spirits 
 by incendiaries. (43 Int. Kev. Rec, 285.) 
 
 Denial of claim for refund of tax on spirits alleged to 
 have been destroyed by incendiary fire while in warehouse ; 
 insufficient evidence. (Letter from Secretary of the Treas- 
 ury, October 15, 1895 ; 42 Int. Rev. Rec, 49.) 
 
 Where spirits are withdrawn from warehouse tax paid 
 and stamped, and afterwards destroyed by accident, the tax 
 can not be refunded. (T. D. 18996.) 
 
 No provision authorizing relief when spirits are stolen 
 from warehouse. (T. D. 19520.) 
 
 Distilled spirits seized by an internal-revenue ofiicer and 
 lost by his negligence, not lost through casualty, within 
 section 3221. (United States v. Sisk, 176 Fed., 885.) 
 
 Can abate the tax on spirits which have been in bonded 
 warehouse beyond bonded period. (18 Op. Atty. Gen., 379 ; 
 32 Int. Rev. Rec, 94.) 
 
 The destruction of spirits stored in distillery warehouses 
 by fire while in the warehouse constituted a " removal." 
 (48 Fed., 714, reversed ; United States r. Peace et al., 53 
 Fed. 999.) See Insurance Companies v. Thompson, 95 U. 
 S. (5 Otto), 547 ; Freeman v. United States, 157 Fed., 195.) 
 
 If accounting oflScers refuse to allow a claim after the 
 Secretary's decision in its favor, claimant can recover In 
 Court of Claims. (HofEheimer Bros. -f. -United States, 20 
 Ct. as., 371.) 
 
 Liability of obligors on warehousing bonds to pay the tax 
 on spirits destroyed in a distillery warehouse can be relieved 
 only in the manner prescribed by the statute. (Farrell v. 
 United States, 8 Biss., 2.59; 99 U. S. (9 Otto), 221; 25 Int. 
 Rev. Rec, 83.) 
 
 The statute (sec. 3221)., contemplates that the burden of 
 proof shall be upon W'^«|fl<SMttW/Wi®att® of Solicitor 
 
144 
 
 ASSESSMENTS AND COLLECTIONS. 
 
 of the Treasury. Letter to Secretary of tlie Treasury of 
 October 21, 1885, in re claim of John G. Iloacli. ) 
 
 A revocation of an order for abatement under section 
 3221, Revised Statutes, does not restore the previous liability 
 of the obligors on the warehousing bond to pay the tax on 
 the spirits claimed to have been destroyed. (United States 
 V. Alexander et al., 110 U. S., 325.) 
 
 Kegulations and instructions governing the abatement of 
 taxes on spirits destroyed by fire, or other casualty. Regu- 
 lations Xo. 7, revised, and No. 14, revised. 
 
 This section applies to special taxes assessed and collected 
 under laws regulating manufacture and sale of oleomar- 
 garine. (Hastings r. Herold, 184 Fed., 759.) 
 
 cffc'^ct"'of pJecId- Sec. 322-2. The preceding section shall take effect in all 
 ii,s section. cuses of loss OF dcstruction of distilled spirits as aforesaid 
 
 vvhich have occurred since January one, eighteen hundred 
 
 and sixty-eight. 
 
 This does not embrace the later addition made to section 
 3221 by act of Mar. 1, 1879, section 6, which by its own 
 terms expressly relates only to spirits thereafter destroyed. 
 ( See latter portion of sec. 3221, p. 142. ) 
 
 Section 5 of the act of June 7, 1906 (34 Stat., 215), page 
 344, extends the provisions of sections 3221 and 3223, E. S,, 
 as amended, to grape brandy withdrawn for use in the for- 
 tification of sweet wines, and which, prior to such use, is 
 accidentally destroyed by fire or other casualty while stored 
 in the fortifying room on the winery premises. 
 
 When tax on Sec. 3223. iAincncled hy sec. 3, act of March i, 1879 {20 
 SnTfled'V; IS: Stat, 327).} When the owners of distilled spirits in the 
 Eurance. cuscs providcd for by the two preceding sections may be 
 
 indemnified against such tax by a ralid claim of insurance 
 for a sum greater than the actual value of the distilled 
 spirits before and without the tax being paid, the tax shall 
 not be remitted to the extent of such insurance. 
 
 The liability for tax on bonded spirits is an insurable 
 interest. (Insurance Company r. Thompson et al., 95 U. S. 
 (5 Otto), 547.) 
 
 An insurance policy upon whisky in bond, without ref- 
 erence to the Government tax, entitles the assured to in- 
 clude the tax in his recovery in case of loss, if the assured 
 is liable for the tax. (Hedger v. Union Insurance Co., 17 
 Fed., 498.) 
 
 In view of the foregoing statute and the decisions above 
 cited, it is held, in cases where it is not expressly stipulated 
 in the policies of insurance that the Government tax is not 
 included in the insurance on the spirits, that the owner of 
 the spirits is not entitled to any allowance, under section 
 3221, on so much of the tax as is equal to the valid insurance 
 in excess of the actual value of spirits, exclusive of the tax. 
 
 -trrin'^as'ses": Sec. 3224. No suit for the purpose of restraining the 
 ment or coUeo- asscssmeut or collection of any tax shall be maintained 
 in any court. 
 
 The constitutionality of a law can not be inquired into in 
 an injunction suit. (The Delaware Railroad Co. r. Pretty- 
 man, 17 Int. Rev. Rec, 99.) 
 
 Allesations in a bill that an assessment is irregular and 
 void do not constitute any ground for an Injunction to re- 
 strain the collection of the assessment. (Alkan x\ Bean, 23 
 Int. Rev. Rec, 351 ; 8 Biss., 83.) 
 
 The courts have persistently i-efused an injunction or 
 othcrDiglteiefitliyd^/CpiS^SSSlo lend aid to taxpayers in 
 
 tion of taxes. 
 
ASSESSMENTS AND COLLECTIONS. 145 
 
 attemijts to defeat the collecting agents of the Government ; 
 the question of constitutionality of the law can be considered 
 in a suit to recover the tax, but not in a proceeding to enjoin 
 collection. .(Dodge v. Osborn, 240 U. S., 118; T. D. 2301; 
 Louisiana v. McAdoo, 234 U. S., 627; T. D. 34764; Kohl- 
 hanier r. Smietanka, 239 Fed., 408.) 
 
 A bill in equity will not lie to enjoin a collector of in- 
 ternal revenue from collecting a tax assessed by the Com- 
 missioner, although the tax Is alleged in the -bill to have 
 been illegally assessed. ( Snyder v. Marks, 109 U. S., 189 ; 
 29 Int. Rev. Kec, 403 ; Moore v. Bllller, 5 App. Gas., D. C, 
 413; Brown -y. Foster, 194 Fed. 855;.,T. D. 1760; Strauss 
 V. Abrast Realty Co., 200 Fed. 253; T. D. 1788.) 
 
 A collector can not be restrained from collecting an 
 assessment by injunction. (Pullan r. Kissinger, 2 Abb. 
 (U. S.), 94; 11 Int. Rev. Rec, 197; Kensett ■;;. Stivers, 27 
 Int. Rev. Rec, 1 ; 18 Blatch., 397 ; 10 Fed., 517 ; State Rail- 
 road Tax Cases, 92 U. S. (2 Otto), 613; Keely v. Sanders, 
 99 U. S., 443 ; Robbins v. Freeland, collector, 14 Int. Rev. 
 Rec, 28; United States v. Hodson, 14 Int. Rev. Rec, 100; 
 Roback v. Taylor (1866), 4 Int. Rev. Rec, 170.) 
 
 Purely injunction bills cap not be maintained to restrain 
 the collection of taxes upon the sole ground of their un- 
 constitutionality. (Allen V. Pullman Palace Car Co., 139 
 V. S., 658.) 
 
 This section forbids issuance of injunction to restrain 
 Commissioner from assessing taxes on sales of grain to 
 memoranda of which no stamps were affixed ; remedy is 
 under section 8226. (Calkins v. Smietanka, 240 Fed. 138.) 
 
 A collector can not be enjoined from collecting a tax, 
 but a suit to recover the money back when illegally col- 
 lected is authorized. (Armour v. Roberts, 151 Fed., 846.) 
 
 It is contrary to every principle of equity jurisprudence 
 that the collection of taxes on personal property should 
 be stayed by injunction. (Nye v. Washburn, 125 Fed., 
 818.) 
 
 The courts will not interfere by mandamus with the 
 executive officers of the Government in the exercise of 
 their ordinary official duties. (United States v. Black, 
 128 U. S., 40.) ' 
 
 The court in this case followed an earlier decision of 
 Decatur v. Paulding (14 Pet, 497), and made clear the 
 distinction between the mere ministerial act of the execu- 
 tive officer, which may be controlled by the courts by 
 mandamus, and an act in the performance of which an 
 officer is vested with quasi-judicial discretion. 
 
 Mandamus to compel abrogation and cancellation of 
 Treasury Decision 2309 refused. (United States ex rel. 
 Ashley v. Osborn, T. D. 2489.) 
 
 Section 3224 forbids not only injunction but other 
 forms of direct equitable relief. (Gouge v. Hart, 250 Fed., 
 802.) 
 
 In matters which require an executive officer to exercise 
 judgment or discretion, no rule will issue for a mandamus. 
 (Carrick v. Lamar, 116 U. S., 423.) 
 
 When mandamus may issue. (Marbury v. Madison, 1 
 Cranch (U. S.), 137; United States v. Schurz, 102 U. S. 
 378.) 
 
 A bill for a mandatory injunction, requiring a collector 
 to accept an export bond for spirits in a bonded ware- 
 house after the bonded period has expired, and allow their 
 withdrawal for export without payment of the tax, is in 
 effect a bill to restrain the collection of taxes, which the 
 court is forbidden to entertain. (Jliles r\ Johnson, 59 
 Fed., 38; 40 Int. Rev. Rec, 10.) 
 
 A collector can not be restrained by Injunction from 
 making a seizure. Q^'z©fi&feyiAfca3i8^/il®92.) 
 •i/t/-vici» on 10 
 
146--. ASSESSMKNXS AKD COLLECTIOKS. 
 
 covef*tax*e? coi^ ^^*^'- ^^^^^ [^"i^ended by nee. 1316 {h), act of Fehru- 
 lected under sec- ary 24-, 1919 {4-0 Stat., 1057).'] When a second assess- 
 burder'irf^root ment is made in case of any list, statement, or return, 
 as to fraud, etc. vi'hich in tile Opinion of the collector or deputy collector 
 was false or fraudulent, or contained any understatement 
 or undervaluation, such assessment shall not be remitted, 
 nor shall taxes collected under such assessment be re- 
 funded, or' paid back, or recovered by any suit, unless it 
 is proved that such list, statement, or return was not 
 willfully false or fraudulent and did not contain any 
 willful understatement or undervaluation. 
 
 (Bergdoll v. Pollock, 95 U. S., 337; Camp Bird, Ltd. v. 
 , Howbert, 249 Fed., 27 : 248 U. S. 590 ; T. D. 2661, aJarmiug 
 
 T. D. 23G6 : Northwestern Mutual Life Insurance Co. v. 
 Fink, 248 Fed., 568.) 
 
 ery"'of °t ax7s Sec. 3226. No suit shall be maintained in any court for 
 Sted.'""^ °°^ *^® recovery of any internal tax alleged to have been 
 erroneously or illegally assessed or collected, or of any 
 penalty claimed to ha^'e b^en collected without authority, 
 or of any sum alleged to have been excessive or in any 
 mariner wrongfully collected, until appeals shall have 
 been duly made to the Commissioner of Internal Revenue, 
 according to the pro^-isions of law in that regard, and the 
 regulations of the Secretary of the Treasury established 
 in pursuance thereof, and a decision of the Commissioner 
 has been had therein: Provided, That if such decision is 
 delaj^ed more than six months from the date of such ap- 
 peal, then the said suit may be bx'ought, without first 
 having a decision of the Commissioner at any time within 
 the period limited in the next section. 
 
 In Hick.? V. James' Administratrix, 48 Fed., 542, the plain- 
 tiff brought suit to recover certain taxes which it was 
 claimed had been illegally exacted, and the question as to 
 whether there had been a proper appeal made to the Com- 
 missioner before the suit was instituted was raised, and the 
 difference between an appeal taken under Forms 46 and 47 
 clearly shown. (James' Administratrix v. Hicks, 110 U. S., 
 272 ; Hastings v. Herold, 184 Fed., 759.) 
 
 In extending jurisdiction to United States courts by the 
 act of March 3, 1887, the provisions of sections 3226 and 
 3227. Revised Statutes, were not abrogated. (Christie- 
 Street Commission Co. r. United States, 126 Fed., 991; 
 affirmed 129 Fed., 506.) 
 
 A suit against the collector for the recovery of taxes is in 
 reality a suit against the United States upon an implied con- 
 tract to pay that which has been unlawfully taken. (Ar- 
 mour r. Roberts, 151 Fed., 846 ; contra, Roberts t>. Lowe, 
 T. D. 2394.) 
 
 Suit should be brought against the collector only who col- 
 lected the taxes. (Philadelphia, Harrisburg & Pittsburgh 
 R. R. Co. V. Lederer, 242 Fed., 492 ; T. D. 2507. ) 
 
 As the right to sue the United States through its collectors, 
 to recover taxes alleged to have been Illegally collected, is 
 only a remedy given by statute, no such right exists unless 
 the conditions prescribed by sections 3226, 3227 are strictly 
 complied with. (Commissioners of the Sinking Fund of 
 Louisville v. Buckner, 48 Fed.. 533; Schmitt v. Ti'owbridge, 
 collector, 24 Int. Rev. Rec, 381. ) 
 
 The common-law right to sue a revenue officer for the re- 
 covery, of. taxes Illegally exacted has been superseded by 
 
 statdi«0/S«f q!Wi4&(€0JiB@ee8i-ded thereby Is deemed to be 
 
ASSESSMENTS AND COLLECTIONS. 14if- 
 
 exclusivp. (Snyder v. ]\[arks, 109 U. S., 189; SchoeufeUl v. 
 Hendricks, 152 U. S., 691. ) 
 
 In the absence of a statutory rule to the contrary, the de- 
 fense of a statute of limitations, which is not raised either 
 in pleading, or on the trial, or before judgment, can not be 
 availed of. (Retzer r. Wood, collector, 109 TJ. S.. 185.) 
 
 A promise on the part of a collector of taxes to repay a tax 
 illegally collected and paid only under protest can not be 
 implied where statute makes it the duty of such officer to 
 pay into the public Treasury without any deduction on 
 account of claims of any description the gross amount that 
 he received. 
 
 The prohibition tliat no suit shall be maintained in any 
 court to recover a tax illegally assessed, except on certain 
 conditions, operates on all suits brouglit subsequently to 
 the time fixed by the act for it to take efCect, aud on suits 
 brought in State courts as well as in Federal. (Collector p. 
 Hubbard, 12 Wall., 1.) 
 
 Upon an application by the United States for an order 
 upon a receiver to pay an assessment, the receiver may show 
 that the assessment was erroneous or illegal, without regard 
 to the lapse of time or to whether there has been an appeal 
 to the Commissioner of Internal Revenue. (United States 
 V. Nebraska Distilling Co., 80 Fed., 285.) 
 
 Condition precedent to suit under this section not appli- 
 cable to inheritance taxes imposed by act of June 13, 1898, 
 if taxpayer has complied with section 3 of the act of .lune 
 13, 1898, and section 2 of the act of July 27, 1912, and 
 presented claim for refund. (Rand v. United States, 249 
 U. S. 503; T. D. 2886.) 
 
 This section applicable to collection and enforcement of 
 tax on oleomargarine under act August 2, 1886 ; filing claim 
 for abatement renders filing claim for refund unnecessary. 
 (Weaver v. Ewers, 195 Fed., 247.) 
 
 This section applies to special taxes assessed and col- 
 lected under laws regulating manufacture and sale of 
 oleomargarine. (Hastings v. Herold, 184 Fed., 7-59.) 
 
 Person alleged to have been wrongfully assessed for 
 oleomargarine taxes, applying pursuant to Form 47 for 
 abatement of assessment, but making no application pur- 
 suant to Form 46 for return of moneys alleged to liave been 
 paid as such taxes under a protest, abatement application 
 having been denied, suit brought against collector to re- 
 cover such taxes was premature. (Hastings v. Herold, 
 184 Fed., 759.) 
 
 Sec. 3227. No suit or proceeding for the recovery of any Limitation a s 
 internal tax alleged to have been erroneously or illegally coven' %f ° taxS 
 assessed or collected, or of any penalty alleged to have 1^™^^"'^'' ™'" 
 been collected without authority, or of any sum alleged 
 to have been excessive or in any manner wrongfully 
 collected, shall be maintained in any court unless the 
 same is brought within two years next after the cause 
 of action accrued: Provided, That actions for such 
 claims which accrued prior to June six, eighteen hun- 
 dred and seventy-two, may be brought within one year 
 from said date; and that where any such claim was 
 pending before the Commissioner, as provided in the 
 preceding section, an action thereon may be brought 
 within one year after such decision and not after. But 
 no right of action which was already barred by any 
 statute on the said date shall be revived by this section. 
 
 Digitized by Microsoft® 
 
148 ASSESSMENTS AWD COLLECTIONS. 
 
 The words " cause of action " mean the right of action. 
 (Wright V. Blakeslee, 101 U. S., 174; 26 Int. Rev. Rec, 
 179.) 
 
 As to claim pending before Commissioner June 6, 1872. 
 (James v. Hiclis, 110 V. S., 272, affirming Hicks v. James, 
 48 Fed., 542.) 
 
 Jurisdiction. (City of Philadelphia r. Collector, 5 
 Wall., 720.) 
 
 State statute of limitations^ as affected by the Federal 
 statute of limitations. (Braun v. Sauerwein, 10 Wall., 
 218.) 
 
 A person can not recover taxes paid v^hich were in fact 
 due, even though the manner of their assessment and col- 
 lection was unauthorized. (Schafer v. Craft, 144 Fed. 
 907.) 
 
 Suits must be brought within two years after the cause 
 of action accrued. (Cheatham v. United States, 92 XJ. S., 
 85; 22 Int. Rev. Rec, 30; Kings County Savings Institu- 
 tion V. Blair, 116 U. S., 200; 32 Int. Rev. Rec, 30; Com- 
 missioners of the Sinking Fund of Louisville v. Biickner, 
 48 Fed., 533; Coblens v. Abel, Woolw. 293, Fed. Cas. No. 
 2926; Christie-Street Commission Co. v. United States, 
 C. C. A. 136 Fed., 326, affirming 129 Fed., 506; Farrell v. 
 United States, 167 Fed., 639.) 
 
 The cause of action accrues at the expiration of six 
 months from the time of appeal by claim to the Com- 
 missioner, or at time of rejection of claim, if such action 
 is taken before the expiration of six months, and the right 
 of action is barred in two years thereafter. (Schwartz- 
 child & Sulzberger r. Rucker, 143 Fed., 656; T. D. 974.) 
 
 The two years commences to run from the decision of 
 the Commissioner on appeal ; the claimant has the option 
 to bring suit after six months from date of appeal in 
 case decision is delayed, or wait until the Commissioner 
 has rejected the claim and bring suit within two years 
 from that time. (Merck v. Treat, 174 Fed., 888; T. D. 
 1405.) 
 
 The cause of action accrues on rejection of claim. 
 
 (State Line & Sullivan R. R. Co. v. Davis, 228 Fed., 246.) 
 
 Suit for recovery of taxes is against the collector as an 
 
 officer, not individually. (Public Service Ry. Co. v. 
 
 Herold, 219 Fed. 301; 229 Fed., 902.) 
 
 No officer of the Government is authorized to waive the 
 statute of limitations imposed in favor of the Government. 
 (Christie-Street Commission Co. v. United States, 129 
 Fed., 506.) 
 Claims for re- Sec. 3228. All claims f or the refunding of any internal 
 ""'*"' tax alleged to have been erroneously or illegally assessed 
 or collected, or of any penalty alleged to hare been col- 
 lected without authority, or of any sum alleged to have 
 been excessive or in any manner wrongfully collected, 
 must be presented to the Commissioner of Internal 
 Revenue within two years next after the cause of action 
 accrued : Provided, That clain^s which accrued prior to 
 June six, eighteen hundred and seventy-two, may be 
 l^resented to the Commissioner at any time within one 
 year from said date. But nothing in this section shall 
 be construed to revive any right of action which was 
 already barred by any statute on that date. 
 
 Informal application regarded as a claim within the 
 meaning of this section. (14 Op. Atty. Gen., 615.) 
 
 When this section does not apply. This limitation does 
 noL apply to 'claims for the redemption of stamps. (15 Op. 
 
 AtMigS&epm. Mcrosoft® 
 
 funding, limita- 
 
ASSESSMENTS AND COLLECTIONS. gi ll49 
 
 This limitation does not apply to claims under section 
 3221, page 142. 
 
 Section 3228 does not apply to claims for refund of legacy 
 taxes under section 3, act of June 27, 1902. (13 Comp. 
 Dec, 707.) 
 
 The act above mentioned is not a part of the revenue 
 system. No protest required. (United States v. Shipley, 
 197 Fed., 265.) 
 
 Act removing bar in case of legacy taxes and Spanish War 
 revenue taxes. (Act July 27, 1912, 37 Stat., 240.) 
 
 The two years' limitation is applicable in cases in the 
 Coui-t of Claims and not the sis years' limitation of Sec- 
 156, Judicial Code. (Ft. Pitt Gas Co. v. United States, 
 49 Ct. Clms., 224 ; T. D. 1979.) 
 
 See section 14, act of September 8, 1916, Appendix, 
 p. 814, as to removing bar of two years' limitations as to 
 certain claims for refund under section 3228, R. S. 
 (23 Compt. Dec, 299, 315.) 
 
 Section 1. [Act of February 28, 1916 (39 Stat., 14, 
 20).] The Commissioner of Internal Revenue Is authorized 
 to reopen and allow claims for taxes for the recovery of 
 which suits are pending and which would be allowable 
 under the decision of the Supreme Court in the case of 
 McCoach, collector, against Minehill and Schuylkill Haven 
 Railroad Company ; and there is hereby appropriated for 
 the payment of such claims a total sum not to exceed 
 $300,000, this appropriation to be available for the pay- 
 ment of such of the aforesaid claims as are not payable out 
 of moneys heretofore appropriated and available during 
 the fiscal year ending June thirtieth, nineteen hundred 
 and sixteen, for the payment of claims. 
 
 Condition precedent to suit under this section not appli- 
 cable to inheritance taxes imposed by act of June 13, 1898, 
 if taxpayer has complied with section 3 of the act of June 
 13, 1898, and section 2 of the act of July 27, 1912, and pre- 
 sented claim for refund. (Rand v. United States, 249 U. S. 
 503; T. D. 2886.) 
 
 Sec. 3229. The Commissioner of Internal Revenue, compromises. 
 with the advice and consent of the Secretary of the Treas- 
 ury, may compromise any civil or criminal case arising 
 under the internal-revenue laws instead of commencing 
 suit thereon ; and, with the advice and consent of the said 
 Secretary and the recommendation of the Attorney- 
 General, he may compromise any such case after a suit 
 thereon has been commenced. Whenever a compromise 
 is made in any case there shall be placed on file in the 
 office of the Commissioner the opinion of the Solicitor of 
 Internal Eevenue, or of the officer acting as such, with his 
 reasons therefor, with a statement of the amount of tax 
 assessed, the amount of additional tax or penalty im- 
 posed by law in consequence of the neglect or delinquency 
 of the person against whom the tax is assessed, and the 
 amount actually paid in accordance with the terms of the 
 compromise. 
 
 Compromises after judgment, remissions, and pardons. 
 (See sec. 3469, p. 656.) 
 
 Officers compromising offenses except as authorized by 
 law; penalty. (Sec 3169, p. 98, and sec. 3170, p. 101.) 
 
 District attorney or marshal compromising cases illegally ; 
 penalty. (Sec 3170, p. 101.) 
 
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15'Q 1 ASSESSMElfTS AND COLLECTIONS. 
 
 Opinion of tlie Attorney General as to the limitation of the 
 power to compromise vested in the Secretary of the Treas- 
 ury under sections 3229 and 3469, pages 149, 656. (17 Op. 
 Atty. Gen., 213; 27 Int. Rev. Rec, 334.) 
 
 Compromises ; course of proceedings indicated. The func- 
 tions of the Secretary of the Treasury and the Attorney 
 General are advisory. (12 Op. Atty. Gen., 472; 8 Int. Rev. 
 Bee, 86.) 
 
 Power to compromise ceases as soon as judgment is ren- 
 dered. (13 Op. Atty. Gen., 479.) 
 
 No power to compromise proceedings against officers. ( 14 
 Op. Atty. Gen., 8, 43.) 
 
 The right to compromise is understood to embrace the 
 criminal as well as the civil liability of the defendant. 
 (13 Op. Atty. Gen., 480.) 
 
 Can not compromise taxes legally due from a solvent tax- 
 payer. (T. D. 18854; 16 Op. Atty. Gen., 240; 25 Int. Rev. 
 Rec, 14. United States v. Roelle et al., 24 Int. Rev. Rec, 
 332; Fed. Cas. No. 16186.) 
 
 Commissioner has power to compromise a tax after 
 assessment and before payment. Question as to compromise 
 of an admitted valid tax on a solvent taxpayer not involved. 
 (30 Op. Atty. Gen., 329.) 
 
 - Power to remit tax. (Dorsheimer v. United States, 7 
 Wall., 166; 10 Int. Rev. Rec, 131.) 
 
 Compromise of liability of obligors on an export bond. 
 (13 Op. Atty. Gen., 115.) 
 
 Canadian bank notes paid out by banks in the United 
 States, tax on, compromise. (21 Op. Atty. Gen., 557.) 
 
 No power to compromise a suit brought against a col- 
 lector of internal revenue for the recovery of tax claimed 
 to have been illegally collected. ( Coca Cola Co. v. Rucker ; 
 23 Op. Atty. Gen., 507.) 
 
 Money deposited for compromise can not be held or set 
 off against tax due. (Boughton v. United States, 12 Ct. 
 Cls., 330; 13 Id., 284.) 
 
 When party complies with terms of compromise it is con- 
 clusive. ( Sweeny v. United States, 17 Wall., 75 ; United 
 States V. ChUd & Co., 12 Id., 232 ; Mason v. United States, 
 17 Id., 67.) 
 
 Discontinuance on payment of costs a compromise. (Op. 
 Atty. Gen. (Hoar), 11 Int. Rev. Rec, 98; 12 Op. Atty. Gen. 
 (Bvarts), 536.) 
 
 Commissioner may direct an unconditional dismissal of 
 a suit without recommendation of Attorney General. (12 
 Op. Atty. Gen., 553.) 
 
 The Attorney General exercises superintendence and 
 direction over United States attorneys and general super- 
 vision over proceedings instituted for the benefit of the 
 United States. He may absolutely dismiss or discontinue 
 suits in which the Government is interested ; a fortiori, he 
 may terminate the same upon terms, at any stage, by way 
 of compromise or settlement. (22 Op. Atty. Gen., 491 ; T. P. 
 21270.) 
 
 An agreement made with the United States District At- 
 torney in the nature of a compromise is not valid unless 
 with the concurrence of the officers above named. (United 
 States V. Quantity of Distilled Spirits, 4 Ben., 349; Fed. 
 Cas. No. 16099.) 
 
 There is no authority for a district attorney or collector 
 to compromise, adjust, or settle any charge or complaint 
 for any violation, or alleged violation, of the internal- 
 revenue law. (T. D. 845.) 
 
 United States Commissioners have no authority to settle 
 cases. (T. D. 121«.) 
 
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ASSESSMENTS AWD COLLECTIONS. 151 
 
 A compromise operates for the protection of the offender 
 against subsequent proceedings as fully as a former con- 
 viction or acquittal, and Is a bar to a suit on a bond to 
 recover penalties based upon the same offense. (United 
 States V. Chouteau, 102 U. S. 603; 27 Int. Rev. Rec, 5.) 
 
 The officers of the Treasury Department are authorized 
 to compromise a case involving a violation of the oleo- 
 margarine statutes upon terms which, in their judgment, 
 are just and reasonable. The initiative of action is with 
 the Commissioner. (26 Op. Atty. Gen., 282.) 
 
 Suits against illicit distillers may not be noUed without 
 permission of Attorney General. ( Sec. 3230, R. S. ) 
 
 Commissioner may Instruct United States attorney to 
 prosecute or abstain. (Sees. 838, p. 659; 3214, p. 131.) 
 
 Instructions relative to offers in compromise. (T. P. 
 18854; T. D. 20265.) 
 
 Compromises induced by threats and duress. (T. D. 206; 
 nit. Rev. Cir, 579.) 
 
 Five-dollar offers. (T. D. 496.) 
 
 Offers in compromise should include payment of costs. 
 (T. D. 642.) 
 .Deposit of amount offered. (T. D. 1253.) 
 
 Favorable consideration will not be given to offers in 
 compromise where the violation of law is deliberate and 
 with intent to defraud and the evidence is sufficient to 
 convict. (T. D. 1795.) 
 
 Compromises in suljstitution cases. (T. D. 1872 ; T. D. 
 2007.) In cases of corporations failing to make returns. 
 (29 Opin. Atty. Gen., 217.) In cases of failure to make 
 return of income tax. (T. Ds. 2015, 2193, 2311, 2349.) 
 
 Only remedy of corporation after unfavorable verdict 
 (other than appeal) is application to the Commissioner for 
 compromise authorized by this section. (United States v. 
 Acorn Roofing Co., 204 Fed., 157.) 
 
 Commissioner has authority to compromise tax liability 
 case before proceeding to distraint and sale. (Op. Atty. 
 Gen., January 30, 1915.) 
 
 One failing to file income tax return can not be suc- 
 cessfully prosecuted, where collector of internal revenue's 
 offer to compromise on payment of tax and penalty was 
 accepted. (Rau v. United States, 260 Fed., 131.) 
 
 Where internal revenue officers, after defendant admitted 
 he had not filed income tax return, accepted both tax and 
 penalty, informing defendant that such payment would 
 end matter and there would be no indictment, such ac- 
 ceptance and statement were a compromise and constituted 
 bar to prosecution. (Id.) 
 
 Fact that sum paid by defendant was retained by the 
 Treasur5' is evidence that money was received in com- 
 promise of case. (Id.) 
 
 Sec. 3230. No discontinuance or nolle prosequi of any ance/ of "prose""; 
 prosecution under section three thousand two hundred tions. 
 and fifty-seven shall be allowed without the permission 
 in writing of the Secretary of the Treasury and the 
 Attorney General. 
 
 Sec. 3231. It shall be lawful for any court in which inSS' 
 anysuit or criminal proceeding arising under the internal- cases. 
 revenue laws may be pending, to continue the same at any 
 stage thereof, for good cause shown on motion by the 
 district attorney. 
 
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 Continuance of 
 revenue 
 
/ 
 
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Chapteh Three. 
 SPECIAL TAXES. 
 
 Sec. 
 3232 
 
 3233. 
 
 3284. 
 3235. 
 
 3236. 
 
 3237 
 
 3238. 
 3239. 
 
 3240 
 3241. 
 
 3242. 
 
 16, 
 4. 
 
 3243 
 
 3244 
 
 Occupation not to be carried on 
 until tax is paid. 
 
 Business to be registered. 
 
 Joint resolution, May 8, 1876. 
 Selling on passenger railroad 
 trains or vessels. 
 
 Persons in partnership at same 
 place liable for only one tax. 
 
 Payment of one special tax not 
 to cover several places of busi- 
 ness. 
 
 When more than one pursuit is 
 carried on in same place by 
 same person at same time. 
 
 (amended). When special tax to 
 be due, how reckoned. 
 
 Stamps for special taxes. 
 
 Special-tax stamp to be exhibited 
 in place of business. 
 
 (amended). List of special- tax 
 payers to be exhibited in col- 
 lector's office. 
 
 Death or removal after paying 
 tax ; business carried on v(?ith- 
 out additional tax. 
 
 Carrying on business without 
 payment of special tax; pen- 
 alties. 
 
 Act February 8, 1875. Same. 
 
 Act August 2, 1886. 
 
 Same as to oleomargarine. 
 
 Act May 9, 1902. 
 
 Same as to process, renovated, 
 or adulterated butter. 
 
 Payment of special tax not to 
 authorize violation of State 
 laws nor prohibit State taxa- 
 tion. 
 
 (amended). Special taxes im- 
 posed on whom ; 
 
 1st. Brewers. 
 
 2d. Manufacturers of stills. 
 
 3d. Rectifiers. 
 
 4th. Retail liquor dealers. 
 
 Wholesale liquor dealets. 
 
 5th. Retail dealers In malt 
 liquors. 
 Wholesale dealers in malt 
 liquors. 
 
 Act of August 2, 1886, as amended 
 by section 2, act of May 9, 1902 : 
 Alanufacturers of oleomar- 
 garine. 
 ' Wholesale dealers in oleomar- 
 garine. 
 Retail dealers in oleomar- 
 garine. 
 
 Digitized by 
 
 Sec. 
 
 4. Act of May 9, 1902 : 
 
 Manufacturers pf process or 
 
 renovated butter. 
 Manufacturers of adulterated 
 
 butter. 
 Wholesale dealers in adulter- 
 ated butter. 
 Retail dealers in adulterated 
 butter. 
 3. Act of June 6, 1896 : 
 
 Manufacturers of filled cheese. 
 Wholesale dealers in filled 
 cheese. Retail dealers in 
 filled cheese. 
 36. Act of June 13, 1898: 
 
 Manufacturers, packers, and 
 repackers of mixed flour. 
 3246 (amended). Special tax not to 
 apply to vintners or apothe- 
 caries in certain cases. 
 
 1000. Act of February 24, 1919 : 
 
 Capital stock tax. 
 
 1001. (Same.) 
 
 Brokers. 
 
 Pawnbrokers'. 
 
 Ship brokers. 
 
 Customhouse brokers. 
 
 Theater?:, museums, and con- 
 cert halls. 
 
 Circuses. 
 
 Public exhibitions and shows. 
 
 Bowling alleys and billiard 
 rooms. 
 
 Shooting galleries'. 
 
 Riding academies. 
 
 Operating or renting passengor 
 automobiles. 
 
 Brewers, distillers, etc. 
 
 1002. (Same). 
 
 Tobacco, cigar, and eiijarette 
 manufacturers. 
 
 1003. (Same). 
 
 Use of yachts, pleasure boats. 
 etc. 
 
 1004. (Same). 
 
 Receipts ; credit of tax paid. 
 
 1005. (Same). 
 
 Penalty. 
 1006-1009. (Same). 
 
 Selling, compounding, etc., of 
 opium, etc. 
 1, 26, 27. Act of February 14, 1917. 
 Sale of intoxicating liquors in 
 Alaska. 
 12. Act of March 3, 1917. Sale of in- 
 toxicating liquors in District 
 of Columbia. 
 
 IVIicrosoft® 
 
1541' SPKCIAIi TAXES. 
 
 to°be''Tr'Hed"on ^^'^- ^^^^- No pcrsoH shall be engaged in or Carry OH 
 until tax is paid, any trade or business hereinafter mentioned iintil he has 
 
 paid a special tax therefor in the manner hereinafter 
 
 provided. 
 
 See section 53, act of October 1, 1890, amending section 
 3237, Revised Statutes, modifying the above. 
 
 For instructions, rulings and decisions applicable to spe- 
 cial taxes, see Regulations No. 1, revised. 
 
 It was held in License Tax Cases (5 Wall., 462, 6 Int. Rev. 
 Rec., 36) that the provisions of the act of Congress of June 
 30, 1864, " to provide Internal revenue to support the Gov- 
 ernment," etc. (13 Stat., 223), and the amendatory acts 
 reQuirlng licenses for certain kinds of business and imposing 
 penalties for not taking out and paying for them, were not 
 contrary to the Constitution or to public policy, and that the 
 provisions of the act of July 13, 1866, " to reduce internal 
 taxation," etc. (14 Stat., 98), for the Imposing of special 
 taxes, in lieu of requiring payment for licenses, removed 
 whatever ambiguity existed In the previous laws, and were 
 in harmony with the Constitution and public policy. 
 
 Returns to be made (Form 11). (Sec. 3173, p. 104.) 
 
 For failure to make sworn return within time prescribed, 
 without excuse of " sickness or absence," the Commissioner 
 of Internal Revenue is required to add 25 per centum to the 
 special tax. ( Sec. 31T6, p. 108.) 
 
 Prosecutions not to be commenced (except In cases of 
 peddlers of liquors) against special-tax payers who make 
 return and pay the tax at any time before expiration of the 
 calendar month in which liability began. (T. D. 18946.) 
 ■ Except In the case of persons engaging In business as 
 liquor dealers in localities where such business is prohibited 
 by local law. lu such cases prosecution to be Instituted 
 unless the special tax is paid and the stamp posted before 
 business is begun. (T. D. 1605.) 
 
 Where a person, after his arrest for failure to pay special 
 tax as required by law, proffers to the collector the amount 
 of the tax and 50 per cent penalty, upon his signing and 
 , swearing to return (Form 11), the collector should receive 
 the money proffered. This does not relieve such person 
 from his criminal liability. (T. D. 21850.) 
 
 A verdict in favor of defendant in a criminal action does 
 not estop the United States from proving the special-tar 
 liability in a civil action. (United States v. Schneider. 35 
 Fed., 107.) 
 
 Department has no authority to refuse to issue special 
 tax stamp to liquor dealer in prohibition territory, which 
 stamp is not a license, but merelv a receipt for the tax. 
 (T. D. 1826.) 
 
 nels'^be^^it ^^^- ^^^P' Every person engaged in any trade or busi- 
 tered. ness on which a special tax is imposed by law shall register 
 
 with the collector of the district his name or style, place of 
 residence, trade or business, and the place where such 
 trade or business is to be carried on. In case of a firm or 
 company, the names of the several persons constituting 
 the same, and their places of residence, shall be so regis- 
 tered. 
 stamps ° may te '^^'^^f' resolution 31 mj 8, 1876 {19 Stat., 213). That 
 Sn*"^ kinds ''"f J^othing contained in chapter three of title thirty-five of 
 business on pas- the Revised Statutes shall prevent the issue, under such 
 trafnT or niseis'! regulations as the Commissioner of Internal Revenue may 
 prescribe, ©i^^eidatiytMcis6s«rii{® to persons carrying oia 
 
SPECIAL TAXES. 15g 
 
 the business of retail dealers in liquors, retail dealers in 
 malt liquors, or dealers in tobacco, upon passenger rail- 
 road trains or upon steamboats or otlier vessels engaged in 
 the business of carrying passengers. 
 
 The special-tax stamps issued for tiie retailing of wine amd 
 liquor on buffet cars attached to passenger railway trains 
 are to be made in general terms for such cars in "the 
 United States," in view ot the impracticability of repeatetl 
 transfers of such stamps iu the various districts and States 
 throTigh which the train passes. (T. r>. 21318.) Such 
 stamp when issued to steamboats or other vessels carrying 
 passengers or to railroad passenger trains does not authorize 
 sales in prohibition territory, (T. D. 1477.) 
 
 Retailing liquors on small boats. <T. D. 1007.) 
 
 Sec. 3231. Any number of persons doing business in p e r s o n b in 
 copartnership at any one place shall be required to pay same"p*criiabie 
 but one special tax. " *"'■ °"iy ""^ ^^^ 
 
 United States v. Glab, 99 U. S., 225; 25 Int. R€v. fiec, 
 84. (See sec 3241.) 
 
 The firm name is the only name that is necessary in a 
 special-tax stamp issued to a partnership. <T. D. 1008.) 
 
 Sec. 3235. The payment of the special tax imposed Payment of one 
 shall not exempt from an additional special tax the per- tr"over'Tever^ 
 son carrying on a trade or business in any other place ^5*°^ "' *""'" 
 than that stated in the collector's register; but nothing 
 herein contained shall require a special tax for the storage 
 of goods, wares, or merchandise in other places than the 
 place of business, nor, except as hereinafter provided, 
 for the sale by manufacturers or producers of their own 
 goods," wares, and merchandise, at the place of produc- 
 tion or manufacture, and at their principal office or place 
 of business, provided no goods, wares, or merchandise 
 shall be kept except as samples at said office or place of 
 business. 
 
 "Where beer is delivered to customers from a storage 
 house, that hOTise is held to be a place of sale for which 
 sjvecial tax is required to be paid, unless there has, in 
 every instance, been prior constructive delivery at a regu- 
 lar place of business elsewhere. (T. D. 18999.) 
 
 Where warehouses for storage of malt liquors are merely 
 places of storage and not places where customers leave 
 their orders, special tax is not required to be paid there- 
 for, nor a special-tax stamp required to be posted up 
 therein. (T. D. 21619.) 
 
 Goods are offered for sale at the place where they are 
 kept for sale, and where a sale may be effected. They 
 are not offered for sale elsewhere by sending abroad an 
 agent with samples or by establishing an office for the 
 purpose of taking orders. (United States v. Chevalier, 
 107 Fed., 434, atfirming 102 Fed., 125.) 
 
 But a wholesale liquor dealer at one point permitting 
 actual delivery from warehouse at another point without 
 prior constructive delivery at place where special-tax 
 stamp is held is liable for special tax at the place of deliv- 
 ery. (De Bary r. Dunne, 172 Fed., 940; T. D. 15.50.) 
 
 Sec. 3236. Whenever mom than one of the pursuits or jha^'"'™ pJslu 
 occupations liereinafter described are carried on in the is carried on in 
 
 Till . J 1 J-- J same place by 
 
 same place by the same ^^Me^bfMS'^ioM'' ^^'^'P'^' IZl tF^r" ^' 
 
156 SPECIAL TAXES. 
 
 as hereinafter provided, the tax shall be paid for each 
 according to the rates severally prescribed. 
 tax^To'be'dur' Sec. 3237. [Amended ly sec. 63, act of October 1, 1890 
 (£6 Stat., 567).'] That all special taxes shall become 
 due on the first day of July, eighteen hundred and 
 ninety-one, and on the first day of July in each year 
 thereafter, or on commencing any trade or business on 
 which such tax is imposed. In the former case the tax 
 shall be reckoned for one year; and in the latter case 
 it shall be reckoned proportionately, from the first day 
 of the month in which the liability to a special tax com- 
 menced to the first day of July following. * * * 
 Eeturna. ^j^^j j^ shall b^ the duty of special tax payers to render 
 
 their returns to the deputy collector at such times within 
 the calendar month in which the special tax liability 
 commenced as shall enable him to receive such returns, 
 duly signed and verified, not later than the last day of 
 the month, except in cases of sickness or absence, as pro- 
 vided for in section three thousand one hundred and 
 seventy-six of the Revised Statutes. 
 
 This section is amendatory of sections 3173 (p. 104), 3176 
 (p. 108). It also repeals the proviso to section 3 of the act 
 of August 2, 1886, relative to the special tax of manufac- 
 turers of oleomargarine commencing business subsequent 
 to the 30th day of June in any year. 
 
 Special-tax payer, even though he makes sworn return 
 
 within the calendar month of his liability, is liable to 
 
 "'criminal prosecution if he fails to pay the tax within 
 
 that month and to post the stamp in his place of business. 
 
 (T. D. 20230.) 
 
 Instructions relative to returns. (T. D. 1782.) 
 
 ciaf Taxes'."' '^'" S^c"- 3238. All spccial taxes imposed by law, including 
 the tax on stills or worms, shall be paid by stamps de- 
 noting the tax, and the Commissioner of Internal Reve- 
 nue is required to procure appropriate stamps for the 
 \ct Feb 18 P^yJ^^nt of such tax6S J and the provisions of sections 
 1875 (18^ Stat.; thirty- three hundred and twelve and thirty-four hun- 
 ^^^^' dred and forty-six, and all other provisions of law relat- 
 
 ing to the preparation and issue of stamps for distilled 
 spirits, fermented liquors, tobacco, and cigars, shall, so 
 far as applicable, extend to and include such stamps for 
 special taxes; and the Commissioner of Internal Reve- 
 nue shall have authority to make all needful regulations 
 relative thereto. 
 
 Section 3312 as to distilled spirits, page 268. 
 
 Section 3446 as amended, page 589. 
 
 The act of December 24, 1872, (17 Stat., 401), first re- 
 quired special taxes to be paid by stamps. 
 
 Collectors prohibited fvovct issuing receipts in lieu of 
 stamps (Sec. 3183, p. 115). From issuing stamiis before 
 payment. (Sec. 1, act of March 1, 1879, p. 100). 
 
 Receipt of partial payments for stamps prohibited. 
 (T. D. 14.57.) 
 
 Unlawful issue of receipts for moneys received in pay- 
 ment of special taxes. (Cir. 595, T. D. 297; T. D. 2341.) 
 
 -'^"0»M^WMfar§$&)?@P'*'^*'^' ^^^ ^^'^o f^'l<^'^ to pay 
 the sante prior to or aunng the calendar months iu which 
 
SPECIAL TAXES. c)ol57 
 
 liability thereto occurred should be reported on Form 23, 
 with date of receipt of Form 11. (Regulations concerning 
 assessments. Regulations No. 1, revised.) 
 
 Stamp not to be issued until Form 11 and the money 
 have been received. (28 Int. Rev. Eec, 37. See T. D. 
 1560.) 
 
 The special-tax stamp is not a license, but merely a re- 
 ceipt for the tax. It puts the United States under no ob- 
 ligation -whatever to the holder beyond assuring him 
 against prosecution under the special-tax laws. (lii-' 
 cense Tax Cases, 5 Wall., 462 ; 6 Int. Rev. Rec, 36 ; T. D. 
 1484.) 
 
 Taxes must be uniform. No authority to refuse to issue 
 the stamp, which is not a license but merely receipt for 
 the tax. (T. D. 1826.) 
 
 Law of State of North Dakota requiring registration and 
 publication of special tax stamp as liquor dealer unconsti- 
 tutional. (North Dakota T. Hanson, 215 U. S., 515.) 
 
 The particular place of business, by street and number, 
 to be designated in the stamp. (T. D. 18912.) 
 
 Sec. 3239. Every person engaged in any business, speciaitax 
 avocation, or employment, who is thereby made liable lpiraou*siy''pia?e°d 
 to a special tax shall place and keep conspicuously in his and kept in place 
 establishment or place of business all stamps denoting Act 27 ' Feb., 
 the payment of said special tax; and any person •who 240). ^v^er^b'a'i 
 shall, through negligence, fail to so place and keep said «"°'' corrected. 
 stamps, shall be liable to a penalty equal to the special 
 tax for which his business rendered him liable, and the 
 costs of prosecution; but in no case shall said penalty 
 be less than ten dollars. And where the failure to com- 
 ply with the foregoing provision of _Jaw shall be 
 through willful neglect or refusal, then the penalty shall 
 be double the amount above prescribed : 
 
 Provided, That nothing in this section shall in any 
 way affect the liability of any person for exercising or 
 carrying on any trade, business, or profession, or doing 
 any act for the exercising, carrying on, or doing of 
 which a special tax is imposed by law, without the pay- 
 ment thereof. 
 
 ■ The words " except tobacco peddlers " in third line 
 omitted, as xinder existing law they are not required to pay 
 a special tax. 
 
 Posting special-tax stamp. (Oir. letter, September 20, 
 1898; T. D. 20094.) 
 
 Sec. 3240. lAmeruled hy act of June 21, 1906 (34 Stat., ^^Ust^of^spedai- 
 387).'] Each collector of internal revenue shall, under exhibfte" hi °coi- 
 regulations of the Commissioner of Internal Revenue, ''^'^*°'''' °'°'=^- 
 place and keep conspicuously in his office, for public in- 
 spection, an alphabetical list of thenames of all persons 
 who shall have paid special taxes within his district, and 
 shall state thereon the time, place, and business for which 
 such special taxes have been paid, and upon application 
 of any prosecuting officer of any State, county, or munici- 
 pality he shall furnish a certified copy thereof, as of a 
 public record, for which a fee of one dollar for each one 
 
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168.: i SPECIAL TAXES. 
 
 hundred words or fraction thereof in the copy or copies 
 so requested may be charged. 
 
 The names in this list should be the true names and not 
 the fictitious ones under which parties may elect to do 
 business. (36 Int. Rev, Rec, 14.) 
 
 Production of records of internal-revenue offices, or copies 
 thereof except of Record 10 as above provided, or divulging 
 information secured In an official capacity, for use in trial of 
 persons indicted for violating State laws is forbidden. (T. 
 D. 19245; 34 Int. Rev. Rec., 261; In re Weeks (Vt.), 82 Fed., 
 730 ; In re Comingore ; T. D. 21584 ; 96 Fed. 552 ; Boslce v. 
 Comtngore, 177 V. S., 4.'59; T. D. 104; In re Lamberton, 
 124 Fed., 446 ; T. D. 689 ; Stegall r. Thurman, 175 Fed., 813 ; 
 T. D. 1616.). 
 
 Regulations prohibiting tlie giving out by collectors of 
 records in their offices, or eopies thereof, for purposes not 
 contemplated by the internal-revenue laws. (Regulations 
 No. 12, revised, sec. 3167, p. 96; sec. 882,- Appendix, p. 644.) 
 
 Information (departmental), how furnished. (Dept. Cir. 
 No. 69, July 5, 1906. Dept. Rule IX, p. 645.) 
 
 While all persons are entitled to inspect Record No. 10 in 
 the collector's office at reasonable and proper times, and are 
 not prohibited from copying the names and addresses of 
 special-tax payers, yet no person is to be permitted to mo- 
 nopolize the book to the extent of interfering with the 
 collector's use of it or to the exclusion of other persons. 
 <T. D. 19225.) 
 
 Not necessary to secure special permission to furnish 
 copies of record 10 to prosecuting officer.^. (T. D. 1619.) 
 
 Collectors may furnish copies of portion of record. How 
 figures are counted in estimating costs. (T. D. 1036.) 
 
 The I'egulations prohibiting collectors from sending ouS 
 their records, or making and furnishing copies thereof, do 
 not authorize them to prevent the public inspection of 
 Record No. 10 in their offices. (T. D. 19332.) 
 
 Scope of act of June 21, 1906. (T. D. 1050 ; T. D. 1164. ) 
 
 movaf'afte?''pay- S^c. 3241. When ally person who has paid the special 
 i"ls ca'5-ried'™n ^^^ ^^^ ^^^ trade or business dies, his wife or child, or 
 without a d d 1 - cxecutors or administrators or other legal representatives, 
 tionai tax. ^^^ occupy the liouse or premises, and in like manner 
 
 cari-y on, for the residue of the term for which the tax is 
 paid, the same trade or business as the deceased before 
 carried on, in the same house, and upon the same premises, 
 without the payment of any additional tax. And when 
 any person removes from the house or premises for which 
 any trade or business was taxed to any other place, he 
 may carry on the trade or business specified in the col- 
 lector's register at the place to which he removes, with- 
 out the payment of any additional tax: 
 
 Provided, That all cases of death, change, or removal, 
 as aforesaid, with the name of the successor to any person 
 deceased, or of the person making such change or re- 
 moval, shall be registered with the collector, imder regu- 
 lations to be prescribed by the Commissioner of Internal 
 Revenue. 
 
 A special-tax payer who discontinues business is not 
 entitled to any rebate for tlie unexiiired portion of the year 
 for which the special-tax stamp was issued. 
 
 anMl^«m#«rrTrd'dLVra''firmnaTing 
 special tax, a new stamp will be required. When two per- 
 
SPECIAL TAXES. 159 
 
 sons, each holding a stamp for business carried on by him- 
 , self, form a partnership, the firm (a separate person, in 
 law, from either of them) must pay special tax. Stamps 
 for separate persons can not be joined together to answer 
 for a partnership. (T. D. 19189 ; 35 Int. Rev., Rec. 28.5.) 
 
 Regulations governing the transfer of stamp upon removal 
 of business from one place to another within a district or 
 from one district to another. (Regulations No. 1, supple- 
 ment No. 1, June 6, 1910 ; T. D. 1637.) 
 
 Collector has no discretion as to granting or declining to 
 grant application for transfer of special-tax stamp. (T. D. 
 20338.) 
 
 Transfer of special-tax stamps. (T. D. 1800.) 
 
 No additional special tax in case of change of firm, one 
 or more of its members succeeding to and carrying on the 
 business at same place. (United States v. Glab, 99 U. S. (9 
 Otto), 225; 25 Int. Rev. Rec, 84.) 
 
 A member of a firm who has acquired the interest of the 
 other members of the firm is entitled to transfer the business 
 to another location without payment of additional special 
 tax. (United States v. Davis, 35 Int. Rev. Rec., 46 ; 37 Fed., 
 468; Cir. No. 324; 35 Int. Rev. Rec, 109.) 
 
 A member of a firm who, upon its dissolution, carries on 
 the business himself without associating any other person 
 with him therein is entitled to continue the business under 
 the firm's special-tax stamp and to have such stamp trans- 
 ferred to any other place to which he removes the business. 
 (T. D. 20346.) 
 
 Where new partners are taken into a firm, thereby dis>iolv- 
 ing the old firm and creating a new partnership, the new 
 firm can not, under the law, carry on business under the 
 special-tax stamp of the old firm. It must make return and 
 pay its own special tax reckoned from the first day of the 
 month in which it began business. (T. D. 20550.) 
 
 Carrying on business at same place under different names. 
 (T. D. 1461, revoking T. D. 1422.) 
 
 Receiver may continue business under stamp issued to 
 bankrupt; also executor. (T. D. 1300.) 
 
 Receivers and assignors entitled to continue business with- 
 out payment of additional special tax. (T. D. 316; 
 T. D. 611.) . 
 
 Additional special tax not to be required of unincorporated 
 club by reason of changes in membership, where such 
 changes do not result in dissolution and formation of new 
 club. (T. D. 1625.) 
 
 Firm changing into a corporation, new special tax re- 
 quired. (T. D. 1165.) 
 
 A mere change of name of a firm to which a special-tax 
 stamp has been issued does not necessitate the taking out 
 of a new stamp. (T. D. 19064; T. D. 1451.) 
 
 A special-tax stamp taken by a woman as a retail liquor 
 dealer, in her own name, is sufficient for the same business 
 conducted by her husband, who takes charge of it upon her 
 retirement therefrom ; he is not- required to pay special tax 
 and take out a stamp in his own name because of the fact 
 that a town license was refused to her, but issued to him. 
 (T. D. 19411.) 
 
 A special-tax payer's wife may continue business under 
 his stamp. (T. D. 19026; T. D. 862.) 
 
 Sec. 3242. Every person who carries on the business of 
 a manufacturer of tobacco, snuff, or cigars, dealer in man- 
 ufactured tobacco, dealer in leaf -tobacco, or retail dealer 
 in leaf-tobacco, without having paid a special tax there- 
 for, as provided by law, shall, besides being liable to the 
 payment of the tax, be fla/gt/ietf byoMidki^f^e hundred 
 
160 SPECIAL, TAXES. 
 
 dollars or be imprisoned not more than one year, or both, 
 
 cariying o n at the discretion of the court. And every person who 
 
 payment of^'spe- Carries' on the business of a brewer or wholesale or retail 
 
 ciii tax. dealer in malt liquors, without having paid a special tax 
 
 therefor, as required by law, shall, besides being liable to 
 
 the payment of the tax, be fined hot less than ten dollars 
 
 nor more than five hundred dollars. 
 
 The portion of this section which is omitted relates to 
 rectifiers, liquor dealers, etc., and was superseded by the 
 following section. 
 
 Single sale is not sufficient to convict under this section, 
 unless made under circumstances warranting inference by 
 jury that defendant either had liquor on hand or was ready 
 and able to procure it for purposes of sale. (Bailey v. 
 United States, 259 Fed., 88.) 
 
 Eeciiflers, liq- Sec. 16. [Acf of Februwrv 8, 1875 {18 Stat., 307).] 
 
 uor clSQlsrs, etc. y rr^i j iin jii* _c j.' 
 
 carrying on busi- 1 hat any pcrson who shall carry on the business oi a recti- 
 
 TnTspedaMMf" ^61", wholesale liquor dealer, retail liquor dealer, wholesale 
 
 dealer in malt liquors, retail dealer in malt liquors, or 
 
 manufacturer of stills, without having paid the special tax 
 
 as required by law, or who shall carry on the business of a 
 
 Distiller carry- distiller witliout having given bond as required by law, or 
 
 wuhout gTving who shall ciigagc in or carry on the business of a distiller 
 
 St °to ^6e- ""'^th intent to defraud the United States of the tax on the 
 
 fraud. spirits distilled by him, or any part thereof, shall, for 
 
 every such offense, be fined not less than one hundred 
 
 dollars nor more than five thousand dollars and impris- 
 
 Penaities. oned not less than thirty days nor more than two 
 
 years. * * * 
 
 Imprisonment for two j^ears on each of two counts, to 
 run concurrently, and fine of $500, not excessive punishment 
 for carrying on liquor business without paying tax. (Foley 
 V. United States, 241 Fed., 587.) 
 
 Payment of tax after the offense not a bar to prosecution. 
 (United States r. Van Horn, 20 Int. Rev. Rec, 145 ; United 
 States V. Devlin, 6 Blatch., 71 ; Fed. Cas. No. 14953 ; United 
 States V. Ellis, 15 Int. Rev. Rec, 43.) 
 
 Special-tax stamp not retroactive. (United States t\ 
 Angell, 11 Fed., 34.) 
 
 The penalty is incurred by a rectifier who omits to pay 
 the special tax irrespective of any intention to defraud. 
 (United States v. Rectifying Establishment of Sloss, 11 
 Int. Rev. Rec, 46.) 
 
 In regard to distillers, see section 3281, page 227. 
 Prosecution must be by Indictment or presentment, not by 
 information. (United States v. Johannesen, 35 Fed., 411.) 
 See note under section 3213, page 132. 
 Rectifiers intending to defraud. (Sec. 3317, p. 271.) 
 Charge to jury. (162 Fed., 736.) 
 
 The special tax receipt or certificate is by act of March 
 4, 1913 (37 Stat, 1005), made prima facie evidence of sale 
 of intoxicating liquor in the District of Columbia. See sec- 
 tion 26, act of February 14, 1917, as to sales in Alaska. 
 (T. D. 2466.) 
 
 Exemption: denatured alcohol. (Par. N, Sec. IV, act of 
 October 3, 1913. 
 
 of and"deaierr[n Sec. 4. [Act of August 2, 1886 {^j Stat., 209).] That 
 oleomargarine every pfirson AA'Tio Carries QJkthe business of a manufac- 
 nllf' witw turer oMSSftP^^figo^mut having paid the special 
 cki^Tax. "' '''°" tax therefor, as required by law, shall, besides being 
 
SPECIAL TAXES. 161 
 
 liable to the payment of the tax, be finod not less than one 
 thousand and not more than five thwisand dollars ; and 
 every person who carries on the business of a wholesale 
 dealer in oleomargarine without having paid the special 
 tax therefor, as required by law, shall, besides being liable 
 to the payment of the tax, be fined not less than five 
 hundred nor more than two thousand dollars ; and every 
 person who carries on the business of a retail dealer in 
 oleomargarine without having paid the special tax there- 
 for, as required by law, shall, besides being liable to the 
 payment of the tax, be fined not less than fifty nor more 
 than five hundred dollars for each and every offense. 
 
 Any person who colors oleomargarine to cause it to look 
 like butter of any shade of yellow, except for his own ^ 
 
 family table, is a manufacturer of oleomargarine ; he alone 
 is regarded as a manufacturer who manufactures for sale. 
 (Morris v. United States, 161 Fed., 672.) 
 
 Sec. 4. [Act of May 9, 1902 {32 Stat., 193) .] That every p^"*!*?- 
 person who carries on the business of a manufacturer of 
 process or renovated butter or adulterated butter without 
 having paid the special tax therefor, as required by law, 
 shall, besides being liable to the payment of the tax, be 
 fined not less than one thousand and not more than five 
 thousand dollars; and every person who carries on the 
 business of a dealer in adulterated butter without having 
 paid the special tax therefor, as required by law, shall, 
 besides being liable to the payment of the tax, be fined not 
 less than fifty nor more than five hundred dollars for 
 each offense: 
 
 Sec. 3243. The payment of any tax imposed by the in- spe^fa?°'t^ E°ot 
 ternal-revenue laws for carrying on any trade or business to authorize vio- 
 shall not be held to exempt any person from any penalty laws," nor pro- 
 or punishment provided by the laws of any State for tio" ^'^*' *^'^" 
 carrying on the same within such State, or in any manner 
 to authorize the commencement or continuance of such 
 trade or business contrary to the laws of such State or 
 in places prohibited by municipal law; nor shall the 
 payment of any such tax be held to prohibit any State 
 from placing a duty or tax on the same trade or business, 
 for State or other purposes. 
 
 McGuire v. Commonwealth, 3 AVall., 387; License Tax 
 cases, 5 Id., 462 ; 6 Int. Rev. Rec, 36 ; affirmed in Pervear v. 
 Commonwealth, 5 Wall. 475. 
 
 A license (special-tax stamp) from the Federal Govern- 
 ment, under the internal-revenue act of Congress, is no bar 
 to. an indictment under a State law prohibiting the sale of 
 intoxicating liquors. (Pervear v. Commonwealth, 5 Wall., 
 475.) 
 
 The act of August 2, 1886 (24 Stat., 209), does not give 
 authority to those who pay the taxes prescribed by it to 
 engage in the manufacture or sale of oleomargarine in any 
 State which lawfully forbids such manufacture or sale, or 
 to disregard any regulations which a State may lawfully 
 prescribe in reference to that article, and that act is not 
 a regulation of commerce among the States. The statute of 
 
 140184°— 20 11 Digitized by Microsoft® 
 
162 SPECIAL TAXES, 
 
 Massach^^setts " to prevent ■deeeption in the manufacture 
 and sale of imitation butter," is not in conflict wltTi the 
 clause of rlie Oonstitution of the TJnitea States inveisting 
 Congress witJi power to legnlate .cammerce among the 
 States. (Plumley v. Massaehnsetts, 155 U. S., 461.) 
 
 Persons who engage in the sale of alcohoUc liquor, evesn 
 though such husiness is a violation of the law of their State, 
 are nevertheless required to pay special tax under the in- 
 ternal-revenue laws of the United States. The stamp, how- 
 ever, issued to them is not a license, and 4oes not protect 
 them from prosecution, conviction, and sentence under the 
 State law. (T. D. 21851; see also T. D. 1484 and T. D. 
 1826.) 
 
 State agencies. (South Carolina re. United States, 199 
 U. S., 437 ; T. D. 961:; 139 Ct. Cls., 257 ; T. D. 759.) Law aC 
 Blaine requires State agents to pay special tax. (T. D. 973.) 
 
 A State statute requiring the holder of a special-tax stamp 
 to perform duties in conflict with the Federal statute is 
 unconstitutional. A State may not so exert its police power 
 as to directly hamper or destroy a lawful authority of the 
 United States. (North Kakota ex rel. Flaherty v. Hanson, 
 215 U. S., 515.) 
 
 The United States not -concerned with the enforcement 
 of local laws regulating or prohibiting the sale of liquor. 
 (Willingham v. L^nited States, 208 Fed., 137.) 
 
 Section ■construed In coimection with section 3281, and 
 latter section held aj)plieable to a prohibition State. (United 
 States V. Lazssaro, .255 Fed., 237.) 
 
 Special taxes. Sec. 3244. {A'mended.'] Special tases are imposed /as 
 f oUovns : 
 
 Brewers. Fli'st. Brewexs shall pay one hundred dollars. Every 
 
 person who manufactures fermented liquors of any name 
 ■or description for sale, ifrom malt, wholly or in part,_or 
 from any substitute therefor, shall be deemed a brewer; 
 Provided, That any person who manufactures less than 
 five hundred barrels a year shall pay the sum of fifty 
 dollars. 
 
 Eice beer fermented is a fermented liquor made from a 
 sul>.stitnte for malt. 134 Int. Rev. Sec. 253.) 
 
 Ruling in regard to manufacture of small beei-. (35 Int. 
 Rev. Rec, 133.) 
 
 Root beer, a fermented liquor .made fi-om " roots, barTrs, 
 herbs, sugar, and bread yeast," if it is not similar to weiss 
 beer or to any of the fermented liquors enumerated in .sec- 
 tion 3339, R. S., is not subject to tax ; nor is the Bpeeial tas 
 of a brewer required to be paid for its manufacture for 
 sale. (T D. 193S3.) 
 
 Special tax is required to toe paid for the -manufacture 
 and sale of "hop beer" resembling w«iss beer. (T D. 
 20233; T D. 19445.) 
 
 Fermented liquor nrnde from malt, or from substitute 
 therefor. < T. D. 892 ; T. I>. 646. ) 
 
 Beverages under the name of " Hop ate," " Hop tonic," 
 " Maltina," etc. ( T D. 19154. ) 
 
 "Hop tea tonic." (T. D. 829.) 
 
 Tax is required to ))e paid on iermBnted Uqnor made 
 from malt or from any substitute therefor containing one- 
 half of 1 per cent of ialeohol, and the manufacturer is re- 
 quired to qualify as a brewer. (See T. D. 1235, modified 
 by T. Ds, 1307, 1360., 2354, 2370, 2410.) 
 
 Ambro.se concentrated ,«K:fcraet- Special tax Jiot required 
 for use in coinpounding for IwMme oonsuraption :saldy and 
 not fc©/§f^'^Oufe>lMe^S(^®ontains more than one-half 
 
SPECIAL TAXES. 163 
 
 of 1 per cent of alcohol by volume, special tax as brewer 
 and malt liqnor dealer would be required for its manufac- 
 ture and sale, respectively. (T. D. 1787.) 
 
 A person Is liable as brewer wlio takes tax-paid beer 
 and adds water or other substance that increases its 
 volume or changes its character. (Davis r. Daughertv, 
 105 Fed. 769; 29 Int. Rev. Eec., 297, 313.) 
 
 Second. Manufacturers of stills sliall each pay fifty iianutactureis 
 dollars, and twenty dollars for each stiU or worm for "'"'''• 
 distilling made by him. Any person who manufactures 
 any still or worm to be used in distilling shall be deemed 
 a manufacturer of stills. 
 
 Sec. 18. [Act of May 2S^ 1880 (Si Stat.., II/S).'] That Exception. 
 subsection second of section thirty-two hundred and 
 forty- four shall not apply to distillers in registered dis- 
 tilleries who manufacture for their own use wooden stills, 
 but each of said distillers shall give notice to the col- 
 lector of the district in which his distillery is located 
 of each still manufactured before the same is used. 
 
 [Act of October 3, WtS, see. /F, par. N., subeec. 2 {'38 
 Stat., 114') -^ * * * That subsection two of section 
 thirty -two hundred and forty-four of the Revised Stat- 
 utes of the Unitwi States shall not apply to stills and 
 worms manufactured for use in distilling, provided for in 
 ^ction one [four] of this act, but the manufacturer or 
 owner of such distilling apparatus shall give notice to 
 the collector of internal revenue of the district in which 
 the said apparatus is made or to which it is removed, of 
 each still, or worm, manufactured, sold, used, or ex- 
 changed under such regulations as the Commissioner of 
 Internal Eevenue, with the approval of the Secretary of 
 the Treasury, may prescribe. 
 
 Manufacturers of stills for pharmaceutical and sciem- 
 tifie purposes. (22 Int. Kev. Rec., 397; 36 Id. 285; T. I>. 
 20063.) 
 
 A still made for use in the manufacture of vinegar comes 
 under the ruling as to stills not used in the distillation of 
 the spirits, and special tax is not required to be paid 
 thereon. — Ruling 20878 revoked. (T. D. 11.) 
 
 Liability to special tax of manufacturers of stills of 5- 
 gallon capacity or less, and of stills used for pharmaceuti- 
 cal purposes. Settled ruling, 36 Int. Rev. Rec, 285. 
 
 Stills of 5 gallons or less. (33 Int. Rev. Rec, 397.) 
 
 All stills •" set up " required to be registered. ( Sec. 
 3258. p. 209.) 
 
 Ruling in regard to repairing of stills. (35 Int Rev. 
 Rec, 133.) 
 
 Separate special tax to be paid on a still for distilla- 
 tion ot spirits and on a worn* for such distillation. Set- 
 tled ruling ae to a person who is employed by a distiller 
 to manufacture parts of a wooden still. <T. D. 21835.) 
 
 The manufacturer of a still, to be used only for phar- 
 maceutical purposes, or for distillation of volatile oils, 
 is not required to pay tax thereon, provided he furnishes 
 the collector evidence, under oath, setting forth the pur- 
 pose for which the still is to be used. (T. D. 5,) 
 
 The statutory provision imposing special tax on stills 
 is held not to apply to a still that is shown not to be in- 
 
 Digitized by Microsoft® 
 
164 SPECIAL TAXES. 
 
 tended for the production of tlie spirits defined by the in- 
 _ ternal-revenue laws. (T. D. 64.) 
 
 The manufacturer of a worm for use by a rectifier in 
 the redistillation of spirits is required to pay special tax 
 thereon. (T. D. 917.) 
 
 There is no special tax under these laws on stills for 
 the production of wood alcohol. (T. D. 918.) 
 
 Sec. 10. [Act of March 1, 1879 {20 Stai., M?).] Upon 
 all stills manufactured for export, and actually ex- 
 BtiUs?'*''*'^'' °" poi'ted, there shall be allowed a drawback, where the 
 tax thereon has been paid, under such rules and regula- 
 tions as the Commissioner of Internal Eevenue, with the 
 approval of the Secretary of the Treasury, shall pre- 
 scribe. 
 
 (See Regulations No. 29, revised.) 
 
 Third. Eectifiers of distilled spirits shall pay two 
 hundred dollars. 
 Rectifiers. Every person who rectifies, purifies, or refines distilled 
 
 spirits or wines by any process" other than by original 
 and continuous distillation from mash, wort, or wash, 
 through continuous closed vessels and pipes, until the 
 manufacture thereof is complete, and every wholesale 
 or retail liquor-dealer who has in his possession any still 
 1 ^^1 8 7^9* T20 '^^ leach tub, or who keeps any other apparatus for the 
 Stat., 327). purpose of refining in any manner distilled spirits, and 
 Rectifiers o ^every person who, without rectifying, purifying, or re- 
 iarreis**a'year.°° fining distilled Spirits, shall, by mixing such spirits, 
 wine, or other liquor with any materials, manufacture 
 any spurious, imitation, or compound liquors for sale, 
 under the name of whisky, brandy, gin, rum, wine, spir- 
 its, cordials, or wine bitters, or any other name, shall bo 
 regarded as a rectifier, and as being engaged in the 
 business of rectifying. 
 
 Provided^ That any person who rectifies, purifies, re- 
 fines, or manufactures as aforesaid less than five hun- 
 dred barrels a year, counting forty gallons of proof spir- 
 its to the barrel, shall pay one hundred dollars. 
 
 And provided, That nothing in this section shall be 
 held to prohibit the purifying or refining of spirits in 
 the course of original and continuous distillation 
 through any material which will not remain incorpora- 
 ted with such spirits when the manufacture thereof is 
 complete. 
 
 And provided further, That no officer shall collect any 
 
 R e 1 ifying special tax for rectifying distilled spirits on any premises 
 
 within 600 feet distant Icss than six hundred feet in a direct line from any 
 
 °' A^ct'^'Feb^^is, distillery. And every officer who collects any special tax 
 
 1875 (18 Stat., ii^ violation of this proviso shall be liable to a penalty of 
 
 „ ' ,^ — five thousand dollars for each offense. 
 
 Penalty for 
 
 ciai'^''taxea ^'^''' Rectifiers or brewers who have paid special tax as " rec- 
 
 tifiers or breA^ers of less than 500 barrels," and who during 
 the same special-tax year desire to increase their product, 
 shpuld.matoe.apnlicatlon for a new stamp, of the denomina- 
 tiJrfS^WWMCffi^M rectifier or $100 in the case of 
 
SPECIAL. TAXES. 165 
 
 a brewer. On obtaining this new stamp the rectifier or 
 brewer may apply to the Commissioner of Internal Revenue, 
 under act of May 12, 1900, for the redeniption of the stamp 
 first issued. 
 
 Gin, manufacture of. (12 Int. Rev. Rec, 197.) 
 
 Rectifying within 600, feet of a distillery. ( Sec. 3266, 
 p. 220; sec. 3280, p. 227.) 
 
 The presence of a filter, consisting of a closely packed 
 pulp through which liquid is forced under pressure, on prem- 
 ises of a wholesale or retail liquor dealer constitutes such 
 dealer a rectifier. (T. D. 19060.) 
 
 Diluting " zonal' extract " with water, for personal use, 
 is not rectifying involving special-tax liability. (T. D. 
 1769.) 
 
 Permitting certain described filtering apparatus in bot- 
 tling warehouses, but not on premises of wholesale liquor 
 dealers. (T. D. 21106.) 
 
 The use of filtering apparatus in filtering wines on bonded 
 winery premises or at bonded winery storehouses is per- 
 mitted, but may not be used by wholesale or retail liquor 
 dealers without incurring special tax as rectifiers. (T. D. 
 2387.) 
 
 Wholesale or retail liquor dealers using " hat filter " 
 must pay tax as rectifiers. (T. D. 2953.) 
 
 Liability of persons who mix spirits or liquors of different 
 strengths or different kinds. (10 Int. Rev. Rec, 121.) 
 
 The addition of water or the simple mixing of spirits of 
 the same kind, produced at the same distillery at or about 
 the same time, is not regarded as rectification. (T. D. 
 1749.) 
 
 The general rule is that a wholesale liquor dealer in his 
 rapacity as such may commingle spirits of the same produc- 
 tion, quality, and kind, differing in age not more than one 
 year and in proof not more than 10 per cent, without render- 
 ing himself liable as a rectifier. 
 
 The addition to distilled spirits of any coloring matter or 
 foreign substance which in any way changes the character 
 of the spirits or remains incorporated therein is regarded 
 as rectification. (Regulations No. 1, revised, August 15, 
 1907, p. 27; Ptark v. Nunn, 101 Fed., 423; T. D. 121.) 
 
 Addition of caramel to spirits constitutes rectification. 
 (T. D. 1332.) 
 
 Distinction between a distiller and a rectifier. (United 
 States V. Marshall, Fed. Cas. No. 15726.) 
 
 fSoHdified whiskey. (T. D. 1735.) 
 
 Wines, vermuth, cordials, etc. (T. D. 2403.) 
 
 Any retail liquor dealer who manufactures comijound 
 liquors, except to fill bar orders previously received, held 
 liable as rectifier. (T. D. 2546; T. D. 1014 revoked.) 
 
 Extract of ginger for use as a flavoring at soda fountains 
 is not a medicine, and the manufacturer is liable for special 
 tax as rectifier. (United States v. Smith, Kline & French 
 Company, 184 Fed., 525.) 
 
 Compounding of spurious liquors with alcohol and flavor- 
 ing extracts is rectification and special tax must be paid. 
 (T. D. 1935.) 
 
 Druggists recovering alcohol previously used in making 
 medicines. (24 Int. Rev. Rec, 282; United States v. Hance, 
 184 Fed., 528; T. D. 1683; 191 Fed., 593; T. D. 1732.) 
 
 The recovery of alcohol from preparations that are not 
 medicines is rectification. (T. D. 963; United States v. 
 Twitchell Co., 184 Fed., 525.) 
 
 Special tax as rectifier required for manufacture of alco- 
 holic medicinal compounds which are not so medicated as 
 to be unfit for use as a beverage and for the manufacture 
 of medicinal cordials, flavoring extracts, essences, and soda- 
 water sirups which ©?gi®2!editoj*Af;ffP0S8#® of the quan- 
 
166 SPECIAL TAXES. 
 
 tity necessary to preserve tlie ingredients, extract tlie 
 properties, or cut the oils and liold them in solution. (T. D. 
 1251; T. D. 1255.) 
 
 In ,1 genuine medicine tlie alcohol should not he more than 
 is necessary for the legitimate purposes of extraction, solu- 
 tion, or preservation, and the preparation should contain 
 approximately a U. S. P. dose of some medicinal ingredient 
 of recognized value, either alone or in combination with 
 other compatible drugs. (T. D. I!7l0.) 
 
 Wines manufactured from prunes. [T. D. 633.) 
 
 "Blackberry wine" and "blackberry cordial," jDroduced 
 from grapes grown in the United States, fortified with 
 spirits and flavored with blackberry, held to be a product 
 of rectification, but not liable to stamp tax under section 
 3328, Revised Statutes. (T. D. 495.) 
 
 "Honey wine," manufacture and sale of. (T. D. 2295.) 
 
 Manufacture of flavoring extracts. (Allen v. Liquid Car- 
 bonic Co., 170 Fed., 315.) 
 
 Extract of ginger for use as a flavoring at soda fomitains. 
 (United States v. Smith, Kline and French Co., 184 Fed., 
 525; T. D. 1684.) 
 
 For ofiicial standards, see T. D. 1843. 
 
 Fourth. [Sec. 18, act of February 8, 1875 (18 Stat, 
 ■1 r uor ^^^) ' '^^ amiended by sec. 4, act of March 1, 1879 {W Stat., 
 deSS?.' ^'^^°^ 327).'] That retail dealers in liquors shall pay twenty- 
 five dollars. 
 
 Every person who sells, or offers for sale, foreign 
 or domestic distilled spirits, wines, or malt liquors, other- 
 wise than as hereinafter provided, in less quantities than 
 five wine gallons at the same time, shall be regarded as 
 a retail dealer in liquors. 
 MoT&tli^l^ "'' Wholesale liquor dealers sliall each pay one hundred 
 dollars. 
 
 Every person who sells, or offers for sale, foreign or 
 domestic distilled spirits, wines, or malt liquors, otherwise 
 than as hereinafter provided, in quantities of not less 
 thali five wine gallons at the same time, shall be regarded 
 as a wholesale liquor-dealer. 
 
 If the quantity of malt liquor sold at one time exceeds five 
 gallons, the vender is a wholesale dealer, although the same 
 is not contained in one package. (United States r. Clare, 
 2 Fed., 55.) 
 
 In prosecutions for selling liquor at wholesale, without 
 payment of special tax, it is not incumbent upon the Govern- 
 ment to prove that the gallon measure used by defendant 
 conformed to the legal standard ; nor is it necessary to prove 
 tliat each gallon contained a gallon of proof spirits. (United 
 States V. Hart, 28 Int., Rev. Rec., 226.) 
 
 Failure to pay special tax ; evidence not competent. (Day 
 V. United States, 229 Fed., 534.) 
 
 whoSa/e^"^ liquoJ ^^t no distiller who has given the required bond and 
 dealer, when. who sells Only distiUcd spirits of his own production at 
 the place of manufacture, or at the place of storage in 
 bond, in the original packages to which the tax-paid 
 stamps are affixed, shall be required to pay the special tax 
 of a wholesale liquor-dealer on account of such sales. 
 
 See section 62, act of August 27, 1894, page 274. 
 Distillers ,not Jlable to special tax as wholesale liquor 
 AeMml^dsmMei^&mht their own production at the 
 
SPECIAL TAXES. 167 
 
 place of storage in bond after the expiration of their bonis 
 as active distillers. <T. D. 2014.) 
 
 Charge to the grand jury ; locker clubs. (162 Fed., 736.) 
 
 Club owning liquors a^d selling to members. (United oiubs. 
 State.s V. Wittig, 2 Low., 466; 22 Int. Eev. Rec, 98; United 
 States V. Woods, 24 Id., 150; United States v. Bolinger, 
 28 Id., 314; United States v. Kallstrom, 33 Id., 152; 
 United States v. GiUer, 64 Fed., 656.) 
 
 Every social club that receives orders from its members 
 for alcoholic liquor in any quantity less than five gallons, 
 and furnishes the liquor so ordered and collects pay there- 
 for, " or accepts the consumer's promise to pay in the 
 future," s^lls the liquor to its members and is a retail 
 liquor dealer under the internal-revenue laws, and is re- 
 quired to pay special tax accordingly. (United States 
 V. The Alexis Club, S8 Fed., 725 ; T. D. 8. See also Mustard 
 V. Elwood, 223 Fed., 225.) 
 
 Clubs or societies collecting money for purcTiase of 
 liquors for joint use of contributors. (T. D. 1262.) 
 
 A social club in which beer is supplied to its members, 
 who help themselves thereto " and throw their contribu- 
 tions into a box through a slot," furnishes the beer under 
 conditions constituting sale, and is required to pay special 
 tax. (T. D. 20119.) But if a club has lockers in which 
 each member places the liquor he desires to drink, the 
 liquor not having been purchased from, the club, and no 
 sale is made by the club but each member uses his own 
 liquor, theii\ no special-tax UabiUty is incurred. (T. D. 
 1311.) 
 
 Shipping spirits to be paid for on delivery {C. O. D.]. '^- 0. D. sales. 
 (United States v. Shrlver, 31 Int. Rev. Eec, 54; United 
 States V. Ott, 31 Id., 79 ; ifnited States v. Cllne, 26 Fed., 515 ; 
 Jug Liquor cases, 32 Int. Rev. Rec, 70 ; Cir. No. 285 ; Gir. 
 No. 339, modifying No. 285; Dec. No. 180 (1890) ; 36 Int. 
 Rev. Rec, 13; United States v. Orene Parker Co., 121 Fed.. 
 596.) 
 
 Delivery by carrier. (United States v. Lackey, 120 
 Fen,, 571.) 
 
 C. O. D. sales : When a, retail liquor dealer, who has paid 
 the special tax, ships liquors by express on orders received 
 from another town, the express company delivering the 
 goods and receiving and sending to the .seller the purchase 
 money, no additional special tax is required. The sale 
 is completed, and the property passes when the goods are 
 delivered to the carrier, the collection and transmission 
 of the price being merely an incident of the express busi- 
 ness. < Jones V. United States (1909), 170 Fed., 1; 
 United States v. Adams Express Co^ 119 Fed., 240.) 
 
 Ruling as to shipment of spirits to shipper's order, 
 bill of lading attached to draft. (T. D. 1426.) 
 
 liiability for single sale or occasional acts. (United 
 States V. Barmhardt, 20 Int. Rev. Rec, 137; United States 
 ^■. Shouse, 31 Id., 120 ; United States v. Rennecke, 28 Fed., 
 S47; letter to Collector Stearns, 31 Int Rev. Rec, 141; 
 United States r. Jackson, 1 Hughes, 531; Ledbetter v. 
 United States, 170 U. S., 606; T. D. 1199.) 
 
 Single sale. (T. D. 1199.) 
 
 One is engaged in the business of a retail liquor dealer 
 within the meaning of section 3242, Revised Statutes, if 
 he has liquor on hand to be sold to anyone who applies 
 for it. (United States v. Rennecke, 28 Fed., 847.) 
 
 "Canteens" on military reservations. (34 InL Rev. 
 Rec, 398.) 
 
 Post exchanges under the complete control of the Secre- 
 tary of War as governmental agencies not subject to 
 special tax as retail liquor dealers. (Dugau v. United 
 
 States. 34 ct. cis., '^fgime^-bf-MMosoft® 
 
168 SPECIAL TAXES. 
 
 Special tax must be paid for sale of any beverage con- 
 taining distilled spirits, or wine, or malt liquor unless 
 quantity of alcohol is too small to come within the notice 
 of the law. (T. D. 761.) 
 
 Caterers serving banquets where liquor is furnished. 
 (T. D. 1429.) 
 
 Sale of brandy peaches. (United States v. Stafford, 20 
 Fed., 720; 30 Int. Rev. Rec, 247; 18 Id., 105; T. D. 19031.) 
 
 No liability for sale of warehouse certificates for whisky 
 in bond. (T. D. 1278.) But see decision in Taney, trus- 
 tee, r. Pennsylvania National Bank. (T. D. 1959.) Over- 
 ruled In T. D. 2784. 
 
 Selling at same time different packages of liquors, aggre- 
 gating over 5 gallons. (T. D. 2288.) 
 
 Advertising whisky shipped on approval. (T. D. 2168.) 
 
 Retail liquor dealer not entitled to accept order for a 
 quantity of spirits amounting to 5 gallons or more, even 
 though he fills the order by shipping from time to time less 
 than 5 gallons. (T. D. 655.) 
 
 Ruling as to constructive delivery. (Letter to C. W. 
 Moulton, 23 Int. Rev. Rec, 253; T. D. 737.) 
 
 Constructive delivery. (De Bary r. Souer, 101 Fed., 425.) 
 
 Agents nego- Liability of party for negotiating Sales for Others. (30 Int. 
 
 Hating sales. Rev. Rec, 93 ; United States -v. Howell, 30 Int. Rev. Rec, 246. ) 
 
 A person is not liable as a dealer in liquors simply for 
 negotiating sales for others, provided he has neither actual 
 nor constructive possession ; but if he has such possession, 
 so that a delivery, either actual or constructive, is made by 
 him, such a delivery as vests the ownership in the purchaser, 
 he is liable to the tax, even though he himself is not the 
 owner of the liquors. (14 Int. Rev. Rec, 193.) 
 
 Taking orders for spirits does not render a person liable 
 as liquor dealer. ( United States v. Chevalier, 107 Fed., 434 ; 
 T. D. 310.) 
 
 Selling liquors as pretended agent. (United States v. 
 Herman Rose, 28 Int. Rev. Rec, 274.) 
 
 One subscriber ordering and receiving liquors purchased 
 by subscription. (T. D. 1474.) 
 
 Societies receiving commissions on sales of liquors In- 
 duced by them. (T. D. 1486.) 
 
 Where goods are shipped with privilege of trial before 
 payment. (¥. D. 1492.) 
 
 Question of liability of merchants to special tax for or- 
 dering liquors for others. (27 Int. Rev. Rec, 234 ; T. D. 
 699 ; T. D. 972 ; T. D. 1072 ; T. D. 1249 ; T. D. 1799. ) 
 
 If commission merchants do not buy or sell but upon re- 
 ceipt of orders from their foreign customers act merely as 
 purchasing agents, they do not Involve themselves in special- 
 tax liability. (T. D. 823.) 
 
 If a person buys spirits in his own name, and has the 
 same billed to him in his own name, and deals it out from 
 time to time, as called for, he is a retail liquor dealer al- 
 though the liquor was disposed of without profit to himself, 
 and he purchased It with money advanced by others. 
 (United States v. Angell, 11 Fed., 34.) 
 
 Selling liquors on fair grounds. (18 Int. Rev. Rec, 81; 
 T. D. 169.) 
 
 Importers who sell spirits in bond are wholesale liquor 
 dealers. (United States v. McCuUough, 22 Int. Rev. Rec, 
 202.) 
 
 Commission mei'chants who, at the request of foreign 
 correspondents, occasionally purchase liquors in quantity, 
 and take charge of shipping the same, and either charge the 
 costs and their commissions upon their books to the account 
 of such correspondents, or draw upon them for the full 
 amou)D;g<ftie(tfi]b]?l]fefee'/H)'&Siif®th costs and commissions, are 
 " wholesale liquor dealers." (Quinn c. Dlmond, 72 Fed., 993.) 
 
SPECIAL TAXES. 169 
 
 An importer of alcoholic liquors or compounds thereof 
 who holds a special-tax stamp as a wholesale liquor dealer 
 at his place of business in one city, and sells and delivers 
 packages of these liquors at a place of storage in another 
 city, without prior constructive delivery to the purchasers 
 at the place where such stamp is held, is required to pay 
 additional special tax and to take out the requisite stamp 
 for that storage place. (T. D. 19281.) (De Bary v. 
 Dunne, 172 Fed., 940 ; T. D. 1550. ) 
 
 Charge that if sales were made by defendant's clerk, it 
 was not necessary to prove that clerk was his agent and 
 acted with his knowledge was properly refused In prosecu- 
 tion .for carrying on retail liquor business without paying 
 special tax. (Faraone v. United States, 259 Fed., 507.) 
 
 The law does not treat distilled spirits as a drug or physicians and 
 medicine, and doctors and druggists are not privileged to druggists. 
 sell it as such without first paying the special tax required 
 of dealers in liquor. (United States v. StafCord, 20 Fed., 720. ) 
 
 Druggist liable criminally for sales by clerk. (United 
 States V, White, 42 Fed., 138, 1890.) 
 
 A practicing physician who prescribed whisky for his 
 patients, furnishing the liquor himself and charging the 
 usual price, is liable. (United States v. Smith, 45 Fed., 115 ; 
 T. D. 4 ; T. D. 806. ) Eiut not if spirits or wines are fur- 
 nished under conditions which do not constitute sale thereof. 
 (T. D. 1355.) 
 
 Sale of bitters. (29 Int. Rev. Rec, 305; 33 Id., 17 ; United Bitters. 
 States v. Cota, 17 Fed., 784; 29 Int. Rev. Rec, 249; Hos- 
 tetter's Bitters, 29 Id., 273 ; United States v. Bibb, 33 Id., 
 391.) 
 
 Bitters sold as a beverage. The fact that the bitters were 
 labeled patent medicine and that the defendant was advised 
 that he might sell the same without a license was no excuse. 
 Parties held liable as liquor dealers. (United States u. 
 Foster, 89 Int. Rev. Rec, 9. ) 
 
 The law is not to be avoided by mere deceptive names. Medicinal com- 
 and if alcoholic beverages in which the essential ingredient pounds. 
 is distilled spirits, disguised by aromatic or other drugs, 
 are commonly bought and sold as and for intoxicating 
 beverages, the same are not to be classed as patent or pro- 
 prietary medicines, and the seller is liable to the tax as a 
 retail liquor dealer. (United States v. Wilson (article 
 labeled as an appetiser, 1895), 69 Fed., 144; 41 Int. Rev. 
 Rec, 411; United States r. Bray, 113 Fed., 1008; United 
 States V. Morfew, 136 Fed., 491.) 
 
 The sale of beer, whisky, or other alcoholic liquor, which 
 has not been combined with drugs or other medicinal sub- 
 stances, involves the seller in special-tax liability, even 
 though it be sold under a label as a medicine. (T. D. 
 19090.) 
 
 Liability for selling alcoholic medicinal compounds. 
 (United States v. Starnes, 35- Int. Rev. Rec, 136; 37 Fed., 
 665 ; United States i\ Stubblefield, 40 Fed., 454 ; T. D. 1251 
 (new i-uling) ; Cir. No. 707; T. D. 1255.) 
 
 To be classed as medicinal, an alcoholic compound should 
 carry with each 1-ounce dose approximately a U. S. P. dose 
 of some drug or drugs of recognized therapeutic value. (T. 
 D. 1510, 1514.) 
 
 Special-tax liability of manufacturers and dealers in 
 alcoholic medicinal compounds, etc. (T. D. 2760.) 
 
 In the case of alcoholic medicinal compounds not in con- 
 formity with the United States Pharmacopoeia or National 
 Formulary, manufacturer must furnish data and obtam per- 
 mit. (T. 0.2576.) ^. ^ ^^ 
 
 Revised list of alcoholic medicinal preparations for the 
 
170 SPECIAL TAXES, 
 
 ^^'^^- A fermented liquor made from oranges, sugar, and elder 
 
 blossoms is wine within the meaning of the internal-revenue 
 laws, and the special tax of a UqTior dealer is required 
 to be paid for its sale. {T. D. 190S9.) 
 
 Where wine is used for making a " casing fluid iw leaf 
 tobacco," unless the material added to the wine changes 
 its character so that it is neither a potable liquid nor a 
 liquid coming under the head of distilled spirits, wine, or 
 malt liquor, special tax is required to be paid for its manu- 
 facture and sale, even thqugh it be sold only to cigar manu- 
 facturers for use in leaf tobacco. (T. D. 19333.) 
 *^»*''- Special tax is not required to be paid for the sale of cider ; 
 
 that is, the juice of apples, whether tinfermented or fer- 
 mented, and whether it is " hard cider " (strongly alcoholic) 
 or not, if no distilled spirits, or wine, or other alcoholic 
 liquor has been added thereto. (T. D. 20309; T. D. 1174.) 
 
 Nothing 3 9 cider except the juice of apples, fermented or 
 Tjnfermented. Imitation cider, mixed with distilled spirits 
 or wine, is a compound liquor, for the manufacture or sale 
 of which special tax is required. (T. D. 20097; United 
 States r. Lewis, T. D. 801.) 
 
 Addition of sugar to elder makes mash fit for distillation. 
 (T. D. 267S.) 
 
 Concerning the collection of special tax as liquor dealers 
 from distillers who sell distilled spirits in bottles put up 
 under the act of March 3, 1897. (Cir. No, 4S1, 43 Int. Rev. 
 Rec, SIS.) 
 
 Auctioneer .selling Uquora. (T, D. 1300; T. D. 827. ) 
 
 Railroad or express company selling liquors to secure 
 chai-ges. (T. D. 71.5 ; T. D. 828.) 
 
 Selling liquors by peddlers prohibited. (Cir. No. 143; 
 22 Int. Rev. Rec, 37; 22 Id., 157; T. D. 584; T. D. 951.) 
 
 Beverages containing less than one-half of 1 per cent of 
 alcohol. (T. D. 1307.) Containing mure than one-half of 
 1 per cent. -fT. D. 2370.) 
 
 Ruling extends only to beverages of specifle name or 
 chai'acter. (T. D. 1519.) 
 
 Transfer of distillery with distilled spirits ; not liable 
 as wholesale liquor dealer. (T. D. 707.) 
 
 Retail liquor dealer selling out. (T. D. 813.) 
 . Retail dealers Fifth. [Act of February 8, 1875 {IS Stat., 309), as 
 ,n malt liquors, ^^^^^.^^j^,^ j^y ^^^_ j^ ^^^ ^f March 1, 1879 {m Stat., 327).] 
 
 Retail dealers in malt liquors shall pay twenty dollars. 
 Every jDerson who sells, or offers for sale, malt liquors 
 in less quantities than five gallons at one time, but who 
 does not deal in spirituous liquors, shall be regarded as a 
 retail dealer in malt liquors. 
 
 Retail dealers in malt liquors can not retail spirituous 
 liquors or -vvines without paying special tax as retail liquor 
 dealers. 
 
 No refund of a tax to a R. M. L. D. who becomes a R. L. 
 D. (33 Int. Rev. Rec, 397 ; T. D. 415.) 
 
 Special tax on bottled beer ; when not imposed. (Letter 
 to Jos. Schlitz Brewing Co., April 5, 1897; 43 Int. Rev. 
 Rec, 193.) 
 
 Dealers in small beer. (T. D. 19154.) See note iinder 
 section 3244, first paragraph, page 162. 
 
 Liability of express companies. The actual ownership 
 of the property is not essential to fix upon the trafficker 
 the quality of a dealer in liquors. Tlie statute attaches to 
 him tlie office of a dealer when he " sells or offers for sale 
 malt liquors." (Western Express Co. v. United States, 
 141 Fed., 28; T. D. 965.) 
 T.d'%'^'^''^'^^^*^® <26Jnt. Re.-. Rec, 169; 
 
SPKCIAL TAXES. 171 
 
 Wholesale dealers in malt liquors shall pay fifty wholesale dcai- 
 dollars. Z^s!" """ """ 
 
 Every person who sells,, or offers for sale, malt liquors 
 in quantities of not less than five gallons at one time, 
 but who does not deal in spirituous liquors at 'wholesale, 
 shall be regarded as a wholesale dealer in malt liquors: 
 
 Provided, That no brewer shall be required to pay a Brewers not 
 special tax as a dealer by reason of selling in the original }'ax'^'''when'^''''^(l 
 stamped packages whether at the place of manufacture ssm.^'^"' 
 or elsewhere, malt liquors manufactured by him or pur- 
 chased and procured by him in his own casks or vessels, 
 under the provisions of section thirty-three hundred and 
 forty-nine of the Revised Statutes; but the quantity of 
 malt liquors so purchased shall be included in calculating 
 the liability to brewer's special tax of both the brewer 
 who manufactures and sells the same and the brewer who 
 purchases the same. 
 
 And it is hereby provided, That no further collection 
 of special tax as retail dealers in malt liquors shall bo 
 made from brewers for selling malt liquors of their own 
 manufacture in the original stamped eighth-barrel pack- 
 
 But no special tax shall be held to accrue on a sale of 
 distilled spirits, wines, or malt liquors made by a person No special tax 
 who is not otherwise a dealer in liquors, where such ciLy^ ''offlc^r o( 
 spirits, wines, or liquors have been received by the ]Der- ™"''*' ^''^• 
 son so selling as security for or in payment of a debt, or 
 as executor, administrator, or other fiduciary, or hare 
 been levied on by any officer, under order or process of 
 any court or magistrate, and where such spirits are sold 
 by such person in one parcel only, or at public auction 
 in parcels not less than twenty wine gallons, noi- shall 
 such tax be held to accrue on a sale made by a retiring 
 partner, or the representatives of a deceased partner to 
 the incoming, remaining, or surviving partner or partners 
 of a firm; nor shall the special tax of a wholesale liquor 
 dealer or wholesale dealer in malt liquors be held to no wholesale 
 apply to a retail dealer in liquors or a retail dealer in faTe"'/e*ntire 
 malt liquors, because of such retail dealer selling out his stock of retau 
 entire stock of liquors in one parcel, or in parcels em- "^^^^^'^• 
 bracing not less than his entire stock "bf distilled spirits, 
 of wines," or of malt liquors ; and section thirty -three 
 hundred and nineteen of the Revised Statutes shall not 
 be held to prohibit a rectifier or liquor dealer from pur- 
 chasing, in quantities greater than twenty wine-gallons, 
 the distilled spirits sold in one parcel as aforesaid. 
 
 Sale of spirits, etc., by sheriff. (33 Int. Rev. Rec, 405.) 
 Brewers shipping bottled beer C. O. D. (33 Int. Rev. 
 Rec, 77.) 
 
 A brewer holding a special-tax stamp of thp smaller class 
 is not required to pay special tax as a brewer of the larger 
 class until the entire quantity of beer produced by him 
 within the special-tax year amounts to 500 barrels. As soon 
 as the quantities produced month by month within that 
 
 Digitized by Microsoft® 
 
172 SPECIAL TAXES. 
 
 period anionnt in the aggregate to 500 barrels he must pay 
 the special tax of a brewer of the larger class for the entire 
 year ($100). He may then send in his stardp of the smaller 
 class for redemption. (T. D. 19439.) 
 
 Brewers who establish places of storage for bottled beer, - 
 and complete sales by deliveries therefrom to purchasers in 
 wholesale quantities, are required to pay special tax as 
 wholesale dealers in malt liquor at every .such place. (T. D. 
 19440; but see T. D. 21619). 
 
 Where a brewer ships bottled beer marked for delivery to 
 persons who had ordered it, but consigns and waybills the 
 beer in general terms to his agent, Instead of shipping it to 
 these persons, sale is made at the time and place of the 
 actual delivery by the agent. (T. D. 21852; T. D. 1369; 
 T. D. 1426.) 
 
 Persons calling themselves agents of brewers in the sale 
 of original stamped packages of beer should furnish ab- 
 stracts from the books of the brewers, showing how the 
 beer is charged, or billed, and also a statement under oath 
 by the brewers, showing that the beer remains absolutely 
 their property until sold, and that these persons are under 
 their orders and control In making such sales. (T. D. 
 21019.) 
 
 They must show that the beer remains absolutely the 
 property of the brewers until sold by them on account of 
 the brewers, and not on their own account. (T. D. 21836.) 
 
 A fermented malt liquor, though diluted to such an extent 
 as to be called nonintoxicating, is a beverage for the sale of 
 which special tax must be paid under the internal-revenue 
 laws. (T. D. 21473.) 
 
 Temi^erance beer. (T. D. 2410.) 
 
 The executor of a person who had been a manufacturer of 
 wine is entitled to sell the wine made by his testator at one 
 " business office " in any quantities, small or large, through 
 an auctioneer, without the payment of special tax ; but if the 
 testator was not the manufacturer of the wine, the executor 
 or his auctioneer is not entitled to sell the wine without 
 paying special tax therefor, unless he disposes of the entire 
 quantity of wine at a single sale. (T. D. 21648.) 
 
 Executor selling liquor. (T. D. 419.) 
 
 Malt tonics and extracts containing more than 2 per cent 
 alcohol classed as fermented malt liquors. (T. D. 2717.) 
 
 Sale of liquors by railroad company and express com- 
 pany to pay freight charges. (T. Ds. 255, 715, 828.) 
 
 Sec. 3. [Act of August 2, 1886 {U Stat, £09), as 
 amended l)y sec. 2 of the act of May 9, 1902 {32 Stai., 
 193).] Manufacturers of oleomargarine shall- pay six 
 hundred doUai's. Every person who manufactures oleo- 
 margarine for sale shall be deemed a manufacturer of 
 oleomargarine. 
 
 And any person that sells, vends, or furnishes oleomar- 
 garine for the use and consumption of others, except to 
 his own family table without compensation, who shall 
 add to or mix with such oleomargarine any artificial col- 
 oration that causes it to look like butter of any shade of 
 yellow shall also be held to be a manufacturer of oleomar- 
 garine within the meaning of said Act, and subject to the 
 provisions thereof. 
 
 See United States v. White & Paller (T. D. 1334) ; United 
 States V. Shipley (T. D. 1504) ; Zinn Co. t'. United States 
 (T.D. 1517) -Endei-si;. UuUed States (T. D. 1669) ; Morris 
 V. M&m^mW'Sf:P^^Q^2) ; Hart V. United States 
 (183 Fed., 368.) 
 
SPECIAL, TAXES. 173 
 
 Not necessary to prove sales. ( Vermont v. United States, 
 174 Fed., 792; T. D. 1.579; May i\ United States, T. D. 
 1797.) 
 
 On tlie trial of an indictment for manufacturing oleo- 
 margarine without payment of special tax it is not neces- 
 sary for the Government to prove that sales or deliveries 
 Vere actually made; it is no violation to color oleomar- 
 garine solely for the family table, or for consumption in 
 the feitchen, or for other household uses ; revenue officers 
 have the right to seize oleomargarine unlawfully prepared 
 for sale wherever found. (T. D. 1504.) 
 
 "Wliolesale dealers in oleomargarine sliall pay four oleomargarine 
 hundred and eighty dollars. Every person who sells or and"deaiers. 
 offers for sale oleomargarine in the original manufac- 
 turer's packages shall be deemed a wholesale dealer in 
 oleomargarine. 
 
 One who borrowed unbroken package of oleomargarine 
 from another, afterwards returning precise amount of same 
 product and brand, was not wholesale dealer in oleomar- 
 garine. (Weaver v. Ewers, 195 Fed., 247.) 
 
 But any manufacturer of oleomargarine who has given 
 the required bond and paid the required special tax, and 
 who sells only oleomargarine of his own production, at 
 the place of manufacture, in the original packages to 
 which the tax-paid stamps are affixed, shall not be re- 
 quired to pay the special tax of a wholesale dealer in oleo- 
 margarine on account of such sales. 
 
 AVhen a broker in oleomargarine is not a wholesale dealer. 
 (32 Int. Hev. Rec, 373.) 
 
 Retail dealers in oleomargarine shall pay forty-eight 
 dollars. Every person who sells oleomargarine in less 
 quantities than ten pounds at onetime shall be regarded 
 as a retail dealer in oleomargarine. 
 
 And sections thirty -two hundred and thirty -two, §§3232,3233, 
 thirty-two hundred and thirty -three, thirty- two hundred 323?; 323I,' 3239! 
 and thirty-four, thirty-two hundred and thirty-five, l^p^'ifc^lY^', 
 thirty-two hundred and thirty-six, thirty-two hundred pp. — ■ 
 and thirty-seven, thirty-two hundred and thirty-eiglit, 
 thirty-two hundred and thirty-nine, thirty-two hundred 
 and forty, thirty -two himdred and forty-one, and thirty- 
 two hundred and forty -three of the Revised Statutes of 
 the United States are, so far as applicable, made to ex- 
 tend to and include and apply to the special taxes im- 
 posed by this section, and to the persons upon whom they 
 are imposed : 
 
 Provided further, That wholesale dealers who vend no Exception. 
 other oleomargarine or butterine except that upon which 
 a tax of one-fourth of one per cent per pound is imposed 
 by this Act, as amended, shall pay two hundred dollars ; 
 and such retail dealers as vend no other oleomargarine 
 or butterine except that upon which is imposed by this 
 Act, as amended, a tax of one-fourth of one cent per 
 pound shall pay six dollars. 
 
 Rulings as to sal£a of oleomargarine. (32 Int. Rev. 
 
 Rec, 365, 381.) Digitizedby Microsoft® 
 
174 SPECIAL TAXES. 
 
 The 50 per cent penalty imposed by section 3176, Revised 
 Statutes, does not apply to the taxes imposed by the oleo- ■ 
 margarine act. (Schafer r. Craft, 144 Fed., 907 j 153 Fed., 
 175; 154 Fed., 1002. Grler v. Tucker, 150 Fed., 658; 160 
 Fed., -611; T, D. 145-5.) 
 
 LlaJjility as wholesal* dealer. (Judd O. Hartzell v. 
 United States, T. D. 2 ; 83 Fed., 1002 ; Miteh^ll v. .Cele, 226 
 Fed., 824.) 
 
 Inability of retail dealers in oleomargarine making loan 
 of wholesale quantities to be retni-ned. (T. D. 1192, mod- 
 ified by T. D. 1233.) 
 
 Mannfaeturers and wholesale dealers may sell oleomarga- 
 rine only in original stamped packages of not less than 10 
 pounds. A retail dealer must sell only from original 
 stamped packages in quantities of not more than 10 pouDiJs, 
 i)acked in new wooden or paper packages marked with his 
 name and address, and the word " Oleomargarine " in large 
 letters printed or branded thereon. _( See sec. 6, "ffct Aug. 
 2, 1886, p. 431.) 
 
 A sherifC or other officer who levies Tipon and sells the 
 oleomargarine belonging to the stock of goods of a retail 
 dealer in oleomaTgarime is not required to pay special tax 
 therefor, inasmuch as he is acting in his official character, 
 in the discharge of lawful duties. (T. D. 730.) 
 
 Retail dealers are not permitted to peddle oleomargarine 
 on the streets. (T. D. €10.) 
 
 Liability of agents or brokers receiving and transmittlag 
 orders for oleomargarine to manufacturers. Unless sales 
 are fully completed at the factory to the persons ordering, 
 special tax is required to be paid at the place of delivery. 
 (T. D. 18978.) 
 
 Parties selling oleomargarine are liable to special tax, 
 although they are ignorant that tlie substance is oleomar- 
 garine. (Charge of Judge Jackson in Hubbard & Paul r. 
 Collector Gilteeson, U. S. circuit court, district of West Vir- 
 ginia. T. D. 19246; Eagle v. NowUn, 94 Fed., 646, T. D. 
 21228.) 
 
 Denlers in colored and wicalored oleomargarine. — Where 
 a person pays special tax as a dealer in iineolored oleomar- 
 garine and thereafter desires to sell also colored oleomar- 
 garine, the only course for him to pursue is to pay tlie 
 special tax at the higher rate for the entire period to the 
 close of the year, and take out the requisite speelal^tai. 
 stamp, and then send In for redemption the sp;ecial-tax 
 stamp taken out at tlie lower rate. <T. D, 526.) 
 
 Sec. 4. {Act of May 5,_ 1902 (3£ Sta-t., W5) .] * * * 
 
 That special tg,xes are imposed as follows : 
 
 Special tax of Manufacturers of process or renoTated butter shall pay 
 
 ™novated°*"aTd ^^^J dollars per year and manufacturers of adulterated 
 
 a duiterated butter shiiU Bav six hundred dollars per year. Every 
 
 butter. 1 ^ "^ • ii 1 _j.- j; 
 
 person who engages in the production o± process or reno- 
 vated butter or adulterated butter as a business shall be 
 considered to be a manufacturer thereof. 
 
 Coopersville Cooperative Creamery r. Lemon. (163 Fed., 
 145; T. D. 1371.) 
 
 Special tax of Wholesale dealers in adulterated butter shall pay a tax 
 tea'tid butter!"'' of f ooir liundred and eighty dollars per araium, and retail 
 •dealers in adulterated butter shall pay a tax of forty -ei^t 
 dollars per annum. Every person who sells adulterated 
 butter in less quantities than ten pounds. at one time shall 
 be regarQe|$fH©ffi( J^Micdsad)#®n adulterated batter. 
 
SPECIAL TAXES- 175 
 
 Every person who sells adulterated butter shall be re- fl^^^"^®' ^^' 
 garded as a dealer in adulterated butter. And sections 
 tliirty-two hundred and thirty-two, thirty-two hundred 
 and thirty-tliree, thirty-two hundred and tliirty-four, 
 thirty-two hundred and thirtj^-five, thirty-two hundred 
 and thirty-six, thirt5f-two liundred and thirty-seven, 
 thirty-two hundred and thirty-eight, thirty-two hundred 
 and thirty -nine, thirty -two kundred and forty, tliirty-two 
 liiundred and forty-one, ^nd thirty-two hundred and forty- 
 three of the Revised Statu;tes of the X^nited States are, ^o 
 far as appIicalDle, made to extend to and include and apply 
 to the special taxes imposed by this section and to the per- 
 son upon whiom they are imposed. 
 
 A dealer In adialterateS butter is liable to the tax whether 
 lie " knowingly " engaged in the business or not. (Law- 
 rence & Co. v. Seyburn, 202 ■Fea.,m3; T. D. IBSl.) 
 
 Sec.S. [Act of Jui%e 6, 1S96 {29 Stat., %5S) .] „, flurd'che""' 
 
 Manufacturers of filled cheese shall pa-y four hundred 
 dollars for each and every factory per annum. Every 
 person, firm, or corpoTation who manufactures filled 
 cheese for sale shall be deemed a manufacturer of filled 
 cheese. Wholesale dealers in fiUed cheese shall pay two wihoio«nie 
 hundred and fifty dollars per annum. Every person, ^hl'se! '" ''""'^ 
 firm, or corporation who sells or offers for sale filled 
 cheese, in the original manufacturer's packages for re- 
 sale, or to retail dealers as hereinafter defined, shall be 
 deemed a wholesale dealer in filled cheese. But any 
 manufacturer of filled cheese who has given the required 
 bond and paid the required special tax, and who sells 
 only filled cheese of his own production, at the place of 
 manufacture, in the original packages, to which the tax- 
 paid stamps are affixed, shall not he required to pay the 
 special tax of a wholesale dealer in filled cheese on ac- 
 count of such sales. 
 
 Retail dealers in filled cheese shall pay twelve dollars Retail dealers. 
 per annimi. Every person who sells filled cheese at re- 
 tail, not for resale, and for actual consumption, shall be 
 iiegarded as a retail dealer in filled cheese, and sec- 
 tions thirty-two hundred and thirty-two, thirty-two 
 hundred and thirty-three, thirty-two hundred and 
 thirty-fom.', thirty-two hun4red and thirty-five, thirty- 
 two hundred and thirty-six, thirty-two hundred and 
 thirty-seven, thirty-two hundred and thirty-eight, 
 thirty-two hundred and thirty-ninfi, thirty-two hundred 
 and forty, thirty-two hundred and forty-one, thirty-two 
 .hundred and forty-three of the Revised Statutes of the 
 United States are, .so far as applicable, made to extend 
 to and include and apply to the special taxes imposed 
 by this section and to the persons, firms, or corporations 
 upon whom they are imposed : Provided, That all special ^^l'-'"'^' ''''^° 
 taxes under this Act shall become due on the first day of 
 July in every year, or on commencing any manufacture, 
 trade, or business on which said tax is imposed. In the 
 
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176 spbciaij taxes. 
 
 latter case the tax shall be reckoned proportionately 
 from the first day of the month in which the liability to 
 the special tax commences to the first day of July 
 following. 
 
 Penalties. Sec. 4. (Samp.) That every person, firm, or corpora- 
 
 tion who carries on the business of a manufacturer of 
 filled cheese without having paid the special tax therefor, 
 as required by law, shall, besides being liable to the pay- 
 ment of the tax, be fined not less than four hundred dol- 
 lars and not more than three thousand dollars ; and every 
 person, firm, or corporation who carries on the business of 
 a wholesale dealer in filled cheese without having paid the 
 special tax therefor, as required by law, shall, besides 
 being liable to the payment of the tax, be fined not less 
 than two hundred and fifty dollars nor more than one 
 thousand dollars; and every person, firm^-or corporation 
 who carries on the business of a retail dealer in filled 
 cheese without having paid the special tax therefor, as 
 required by law, shall, besides being liable for the pay- 
 ment of the tax, be fined not less than forty nor more 
 than five hundred dollars for each and every offense. 
 
 Manufacturers Sec. 36. [ Act of JUTW 13, 1898 (30 Stat., U8) .1 That 
 
 and packers of '- r, ' i-ij! • 
 
 mfxed flour. every person, farm, or corporation, beiore engaging in 
 ^ the business of making, packing, or repacking mixed 
 
 flour, shall pay a special tax at the rate of twelve dollars 
 per annum, the same to be paid and posted in accordance 
 with the provisions of sections thirty-two hundred and 
 forty-two and thirty-two hundred and thirty-nine of the 
 Penalties. Eevisccl Statutes, and subject to the fines and penalties 
 therein imposed for any violation thereof. 
 SE0..3245. [Obsolete.] 
 to aDDi'''to'""t* ^^^- ^246. [Amended Uj sec. 5, act of March 1, 1879 
 ners of apothe- {20 Stat., 327) , and act of March 3, 1915 {38 Stat., 893).] 
 cases? '" «<^'^'^"' Nothing in this chapter shall be construed to impose a 
 special tax upon vintners who sell wine of their own 
 growth, or manufacturers who sell wine produced frotn 
 grapes grown by others, at the place where the same is 
 made or at the general business office of such vintner or 
 manufacturer: Provided, That no vintner or manufac- 
 turer shall have more than one office for the sale of such 
 wine that shall be exempt from special tax under this act ; 
 nor shall any special tax be imposed upon apothecaries as 
 to wines or spirituous liquors which they use exclusively 
 in the preparation or making-up of medicines. 
 
 Nor shall any special tax be imposed upon manufactur- 
 ing chemists or flavoring extract manufacturers for re- ■ 
 covering tax-paid alcohol or spirituous liquors from dregs 
 or marc of percolation or extraction if said recovered 
 alcohol or spirituous liquors be again used in the manu- 
 facture of flavoring extracts. 
 
 Limitation of a druggist's riglit to sell liquors witlwut 
 paying special tax. (34 Int. Rev. Rec, 157.) 
 
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SPECIAL TAXES. 1,77 
 
 An apothecary, who bona fide uses spirituous liquors In 
 the preparation of a metlicine to be used as such and not as 
 a beverage, does not violate section 3242, by not paying the 
 special tax required of a retail liquor dealer. (United 
 States V. Calhoun, 39 Fed., 604.) 
 
 Druggists compounding medicines. (T. D. 933; T. D. 
 1514.) 
 
 The fact that a person is an authorized liquor dealer under 
 the internal-revenue laws does not prevent him from en- 
 gaging also in the compounding of medicines ; and if he does 
 so, using spirits in combination with roots, herbs, or drugs, 
 and sells the compound only under a label specifying the - 
 diseases for which it is held out as a remedy, he is an 
 apothecary within the exempting provision of section 3246. 
 (T. D. 19412.) 
 
 The exemption from special tax granted druggists for use 
 of spirits or wine by this section relates only to medicines in 
 w-hich the spirits or wine used have been changed in nature 
 and made clearly medicinal by the addition of drugs. (T. D. 
 1019.) 
 
 What alcoholic compounds may be classed as medicinal. Medicinal com- 
 
 (T. D. 1510.) pound)!. 
 
 A manufacturer of medicinal compounds, by the use of 
 tax-paid spirits in combination with drugs, is entitled to the 
 exemption when he sells such compounds only under labels 
 specifying the diseases for which they are held out as 
 remedies, and his use of a pharmaceutical still in the prepa- 
 ration of these medicines does not involve him in liability 
 under the internal-revenue laws. (T. T>. 19347.) 
 
 A compound of medicinal roots and distilled spirits, if 
 held out not merely as a remedy for disease, but also as 
 *' bitters for mixed drinks," is not to be regarded as made 
 in good faith for medicinal use only, and the manufacturer 
 who sells it under such a label is not entitled to the exemp- 
 tion, and is required to pay special tax as a rectifier and 
 liquor dealer. (T. D. 19442.) 
 
 Where grapes are pressed at one place and the' juice is ^^^^ 
 then carried to another place and there fermented, the 
 latter is the place of manufacture of the wine, and the manu- 
 facturer is there permitted by the provisions of section 3246 
 to sell it without paying special tax. (T. D. 19410.) 
 
 A person who sells blackberry wine (a fermented liquor 
 made from blackberry- juice) is required to pay special tax 
 as a liquor dealer for selling the wine, unless he is the 
 manufacturer of it and has made it from berries grown by 
 himself or gathered wild by himself or by persons in his 
 employ, and the wine is sold by him only at the place of 
 manufacture or at his one " general business office." (T. D. 
 20366.) 
 
 A person who buys elderberries and makes wine there- 
 from is not within the exempting provision, and Is required 
 to pay special tax for selling such wine, even when he sells 
 it at the place of manufacture. (T. D. 20.541.) 
 
 Where grapes are sent to be crushed and the wine re- 
 turned to grovi-er special tax required. (T. D. 1556.) 
 
 Defining standards for determining special tax liability. 
 (T. D. 1843.) 
 
 The recovery of alcohol by an apothecary which has 
 been used in making up medicine to be again used by him 
 for the same purpose is permissible. Where the alcohol is 
 not used exclusively for the preparation of medicines 
 exemption does not apply. (United States v. Hance et ai., 
 184 Fed., 528; T. D. 1683; affirmed, 191 Fed., 593; T. D. 
 1732.) 
 
 140184°— 20 12 
 
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178 SPECIAL TAXES. 
 
 Vise of alcohol recovered from dregs, etc., in any other 
 manner than that prescribed, without payment of special 
 tax, not permitted. (T. D. 2760.) 
 
 Standard to which manufacturer of and dealer in alco- 
 holic medicinal compound must conform in order to be 
 exempt from tax stated. (T. Ds. 2760, 2767.) 
 
 Manufacturers of extract of ginger as a flavoring not en- 
 titled to exemption. (T. D. 1684.) 
 
 Sec. 1000. [Act of February U, i919^ {lfi_ Stat., 1067).'] 
 (a) That on and after July 1, 1918, in lieu of the tax 
 imposed by the first subdivision of section 407 ofvthe 
 Eevenue Act of 1916 — 
 tax^'^^CSc^ Eegu^ (■"■) Evcry domestic corporation shall pay annually a 
 lations 60, April spccial excise tax with respect to carrying on or doing 
 29, 1919.) business, equivalent to $1 for each $1,000 of so much of 
 
 the fair average value of its capital stock for the pre- 
 ceding year ending June 30, as is in excess of $5,000. 
 In estimating the value of capital stock the surplus and 
 undi\'ided profits shall be included ; 
 
 (2) Every foreign corporation shall pay annually a 
 special excise tax ■with respect to carrying on or doing 
 business in the United States, equivalent to $1 for each 
 $1,000 of the average amount of capital employed in the 
 transaction of its business in the United States during the 
 preceding year ending June thirtieth. 
 
 (b) In computing the tax in the case of insurance com- 
 panies such deposits and reserve funds as they are re- 
 quired by law or contract to maintain or hold for the 
 protection of or payment to or apportionment among 
 policyholders shall not be included. 
 
 (c) The taxes imposed by this section shall not apply 
 in any year to any corporation which was not engaged 
 in business (or in the case of a foreign corporation not 
 engaged in business in the United States) during the 
 preceding year ending Jime 30, nor to any corporation 
 enumerated in section 231 [p. 496]. The taxes imposed by 
 this section shall apply to mutual insurance companies, 
 and in the case of every such domestic company^ the tax 
 shall be equivalent to $1 for each $1,000 of the excess 
 over $5,000 of the sum of its surplus or contingent re- 
 serves maintained for the general use of the business and 
 any reserves the net additions to which are included in 
 net income under the provisions of Title II [p. 473], as 
 of the close of the preceding accounting period used by 
 such company for purposes of making its income tax 
 return: Provided, That in the case of a foreign mutual 
 insurance company the tax shall be equivalent to $1 
 for each $1,000 of the same proportion of the sum 
 of such surplus and reserves, which the reserve fund upon 
 business transacted within the United States is of the 
 total reserve upon all business transacted, as of the close 
 of the preceding accounting period used by such com- 
 pany for purposes of making its income tax return. 
 
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SPECIAL TAXES. 
 
 179 
 
 _(d) Section 257 [p. 510] shall apply to all returns filed 
 with the Commissioner for purposes of the tax imposed 
 by this section. 
 
 Engaged in business. (T'. T>. 245T.) 
 
 Fair value. (T. D. 2509.) 
 
 Holding companies. (T. D. 2429.) 
 
 Subsidiaries, returns of. (T. D. 2493.) 
 
 Citations from decisions of Supreme Court. (T. D. 
 2418.) 
 
 Rulings. (T. Ds. 2417, 2423. 2467.) 
 
 Value of stocks, how ascertained. (T. D. 2426.) 
 , Corporations in hands of receivers. (T. D. 2424.) 
 
 Preparation of returns. (T. D. 2503.) 
 
 Limited partnerships of the Penn.sylvania and New York 
 types. (T. D. 2711.) 
 
 Railroad corporations under Federal control. (T. D. 
 2800.) 
 
 Trust company doing business as banker ; act of October 
 22, 1914. (Anderson v. Farmer's Loan & Trust Co., 241 
 Fed., 322; T. D. 2460.) 
 
 Regulations govemimg inspection of returns. ( T. I>. 2961. ) 
 
 Furnishing copies of returns. (T. D. 2962.) 
 
 Articles 41 and 102, Regulations No. 50, amended. ( T. D. 
 2979.) 
 
 Sec. 1001. [Act of February 24, 1919 {Ifi Stat., 
 1057}.'] That on and after January 1, 1919, there shall 
 be levied, collected, and paid annually the following 
 special taxes — 
 
 (1) Brokers shall pay $50. Every person whose busi- 
 ness it is to negotiate purchases or sales of stocks, bonds, 
 exchange, bullion, coined money, bank notes, promissory 
 notesj otlier securities, produce or merchandise, for 
 others, shall be regarded as a broker. If a broker is a 
 member of a stock exchange, or if he is a member of any 
 produce exchange, board of trade,, or similar organiza- 
 tion, where produce or merchandise is sold, he shlll pay 
 an additional amount as follows: If the average value, 
 during the preceding year ending June 30, of a seat or 
 membership in such exchange or organization was 
 $2,000 or more but not more than $5,000, $100; if such 
 value was more than $5,000, $150. 
 
 A bank not holding itself out as engaged in negotiating 
 purchases or sales of stock, etc., but merely negotiating pur- 
 chase and sale thereof for patrons, without remuner.-itinn, 
 not liable a« broker. (T. D. 2782.) 
 
 (2) Pawnbrokers shall pay $100. Every person 
 whose business or occupation it is to take or receive, by 
 way of pledge, pawn, or exchange, any goods, wares, or 
 merchandise, or any kind of personal property what- 
 ever, as security for the repayment of money loaned 
 thereon, shall be regarded as a pawnbroker. 
 
 (3) Ship brokers shall pay $50. Every person whose 
 business it is as a broker to negotiate freights and other 
 business for the owners of vessels, or for the shippers or 
 consignars or consignees of freight carried by vessels, 
 shall be regarded as a ship broker. 
 
 Digitized by Microsoft® 
 
 Brokers. 
 
 Pawnbrokers. 
 
 Ship brokers. 
 
180 
 
 SPECIAL TAXEiS. 
 
 Theaters, mu- 
 eeums, and con- 
 cert halls. 
 
 Customhouse (4^ Custoinhouse brokcrs shall pay $50. Every per- 
 son whose oeet>pation it is, as the agent of others, to ar- 
 range entries and other customhouse papers, or transact 
 business at any port of entry relating to the importation 
 or exportation of goods, wares, or merchandise, shall be 
 regarded as a customhouse broker. 
 
 A person or firm holding hiiuseli: or itseU out to the 
 public as engaged in tlie occupation of customhouse 
 broker, either by maintaining an office or sending out 
 literature, advertising matter, etc., is required to pay, 
 special tax. (T. D. 2321.) ^ 
 
 (5) Proprietors of theaters, museums, and concert' 
 halls, where a charge for admission is made, having a 
 seating capacity of not more than two hundred and fifty, 
 shall pay $50; having a seating capacity of more than 
 two hundred and fifty and not exceeding five hundred, 
 shall pay $100 ; having a seating capacity exceeding five 
 hundred and not exceeding eight hundred, shall pay 
 $150 ; having a seating capacity of more than eight hun- 
 dred, shall pay $200. Every edifice used for the pur- 
 pose of dramatic or operatic or other representations, 
 plays, or performances, for admission to which entrance 
 money is received, not including halls or armories rented 
 or used occasionally for concerts or theatrical represen- 
 tations, and not including edifices owned by religious, 
 educational or charitable institutions, societies or or- 
 ganizations where all the proceeds from admissions) 
 inure exclusively to the benefit of such institutions, so- 
 cieties or organizations or exclusively to the benefit of 
 persons in the military or naval forces of the United 
 States, shall be regarded as a theater: Provided, That 
 in cities, towns, or villages of five thousand inhabitants 
 or less the amount of such payment shall be one-half of 
 that above stated : Provided further^ That whenever any 
 such edifice is under lease at the time the tax is due, the 
 tax shall be paid by the lessee, unless otherwise stipu- 
 lated between the parties to the lease. 
 
 Returns. (T. D. 2775.) 
 
 (6) The proprietor or proprietors of circuses shall pay 
 $100. Every building, space, tent, or area, where feats of 
 Horsemanship or acrobatic sports or theatrical per- 
 foi-mances not otherwise provided for in this section are^ 
 exhibited shall be regarded as a circus: Provided, That 
 no special tax paid in one State, Territory, or the District 
 of Columbia shall exempt exhibitions from the tax in 
 another State, Territory, or the District of Columbia, 
 and but one special tax shall be imposed for exhibitions 
 within any one State, Territory, or District. 
 
 (7) Proprietors or. agents of all other public exhibitions 
 or shows for money not enumerated in this section shall 
 pay $15 : Provided, That a special tax paid in one State, 
 Territory, or the District of Columbia shall not exempt 
 
 Digitized by Microsoft® 
 
 Circuses. 
 
 Public exhibi- 
 tions or shows. 
 
SPECIAL TAXES, 181 
 
 exhibitions from the tax in another State, Territory, 
 or the District of Columbia, and but one special tax shall 
 be required for exhibitions ;j?vithin any one State, Terri- 
 tory, or the District of Columbia : Provided further^ That 
 this paragraph shall not apply to Chautaiiquas, lecture 
 lyceums, agricultural or industrial fairs, or exhibitions 
 held under the auspices of religious or charitable asso- 
 ciations: Provided further^ That an aggregation of en- 
 tertainments, luiown as a street fair, shall not pay a larger 
 tax than $100 in any State, Territory, or in the District 
 of Columbia. 
 
 Exemption of Chautauquas, etc. (T. D. 2448.) 
 
 (8) Proprietors of bowling alleys and billiard I'ooms ,^ ^o^wUng^^^^^ai^ 
 shall pay $10 for each alley or table. Every building or rooms. 
 place where bowls are thrown or where games of billards 
 
 or pool are played, except in private homes, shall be re- 
 garded as a bowling alley or a billiard room, respectively. 
 
 Pool tables and bowling alleys are exempt if tax would 
 fall upon State treasury ; otherwise tax is due on account 
 of pool tables and bowling alleys in State armories, fire 
 houses, etc., and also in clubs, Y. M. 0. A. buildings, 
 hotels, etc. (T. D. 2462.) 
 
 Post exchanges, if under Government control, not liable 
 to special tax for operating billiard or pool tables or bowling 
 alleys. (T. D. 2439.) 
 
 (9) Proprietors of shooting galleries shall pay $20. ,^^shootiDg gai- 
 Every building, space, tent, or area, where a charge is 
 
 made for the discharge of firearms at any form of target 
 shall be regarded as a shooting gallery. 
 
 (10) Proprietors of riding academies shall pay $100. Rimng acad- 
 Every building, space, tent, or area, where a charge is 
 
 made for instruction in horsemanship or for facilities 
 for the practice of horsemanship shall be regarded as a 
 riding academy. 
 
 (11) Persons carrying on the business of operating or operating or 
 renting passenger automobiles for hire shall pay $10 for |e?*'automo^bUe"! 
 each such automobile having a seating capacity of more 
 
 than two and not more than seven, and $20 for each such 
 automobile having a seating capacity of more than seven. 
 
 (12) Every person carrying on the business of a brewer, Brewers, dis- 
 distiller, wholesale liquor dealer,, retail liquor dealer, *'"^'^'^' '*"' 
 
 PR'holesale dealer in malt liquor, retail dealer in malt 
 liquor, or manufacturer of stills, as defined in section 3244 
 as amended and section 324T of the Eevised Statutes, in 
 any State, Territory, or District of the United States 
 contrary to the laws of such State, Territory, or District, 
 or in any place therein in which carrying on such business 
 is prohibited by local or municipal law, shall pay, in ad- 
 dition to all other taxes, special or otherwise, imposed by 
 existing law or by this Act, $1,000. 
 
 The payment of the tax imposed by this subdivision 
 shall not be held to exempt any person from any penalty 
 
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182 SPECIAL TAXES. 
 
 I 
 
 or punishment provided for by the laws of any State, 
 Territory, or District for carrying on such business in 
 such State, Territory, or District, or in any manner to 
 authorize the commencement or continuance of such 
 business contrary to the laws of such State, Territory, 
 or District, or in places prohibited by local or municipal 
 law. 
 
 The taxes imposed by this section shall, in the case of 
 persons upon whom a corresponding tax is imposed by 
 section 407 of the Revenue Act of 1916, be in lieu of such 
 tax. 
 
 Person operating motor buses along established or recog- 
 nized routes, charging patrons a fixed charge per ride, is 
 cajrying on a business of operating passenger automobiles 
 for hire, and is therefore liable to the tax imposed by 
 subdivision (11) of this section ; automobile hearse, even 
 though having seating capacity for more than two persons, 
 operated for hire, is not a passenger automobile subject 
 to tax under said subdivision (11). (T. D. 2893.) 
 
 ^J;^^i' ,igt Sec. 1002. {^Act of Fehnmry 24, 1919 HO Stat., 1067). 1 
 rette manufac- That ou and after January 1, 1919, there shall be levied, 
 "^^'^' collected, and paid annuallj^, in lieu of the taxes imposed 
 
 by section 408 of the Revenue Act of 1916, the following 
 special taxes, the amount of such taxes to be computed 
 on the basis of the sales for the preceding year ending 
 June 30— 
 
 Manufacturers of tobacco whose annual sales do not 
 exceed fifty thousand pounds shall each pay $6; 
 
 Manufacturers of tobacco whose annual sales exceed 
 fifty thousand and do not exceed one hundred thousand 
 pounds shall each pay $12; 
 
 Manufacturers of tobacco whose annual sales exceed 
 one hundred thousand and do not exceed twq hundred 
 thousand pounds shall each pay $24; 
 
 Manufacturers of tobacco whose annual sales exceed 
 two hundred thousand pounds shall each pay $24, and 
 at the rate of 16 cents per thousand pounds, or fraction 
 thereof, in respect to the excess over two hundred thou- 
 sand pounds: 
 
 Manufacturers of cigars whose annual sales do not ex- 
 ceed fifty thousand cigars shall each pay $4 ; 
 
 Manufacturers of cigars whose annual sales exceed 
 fifty thousand and do not exceed one hundred thousand 
 ci^rs shall each pay $6; 
 
 Manufacturers of cigars whose annual sales exceed 
 one hundred thousand and do not exceed two hundred 
 thousand cigars shall each pay $12; 
 
 Manufacturers of cigars whose annual sales exceed 
 two hundred thousand and do not exceed four hundred 
 thousand cigars shall each pay $24; 
 
 Manufacturers of cigars whose annual sales exceed 
 four hundred thousand cigars shall each pay $24, and at 
 the rate of 10 cents per thousand cigars, or fraction 
 
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SPECIAL TAXES. 183 
 
 thereof, in respect to tlie escess over four hundred thou- 
 sand cigars; 
 
 Manufacturei-s of cigarettes, including small cigars 
 weighing not more than three pounds per thousand shall 
 each pay at the rate of 6 cents for every ten thousand 
 cigarettes, or fraction thereof. 
 
 In arriving at the amount of special tax to be paid 
 under this section, and in the levy and collection of such 
 tax, each person engaged in the manufacture of more 
 than one of the classes of articles specified in this section 
 shall be considered and deemed a manufacturer of each 
 class separately. 
 
 Sec. 1003. [Act of February £4, 1919 (40 Stat, 1057).} ^^^^^^°J yg^^s. 
 That sixty days after the passage of this Act, and there- etc. 
 after on July 1 in each year, and also at the time of the 
 original purchase of a new boat by a user, if on any 
 other date than July 1, there shall be levied, assessed, 
 collected, and paid in lieu of the tax imposed by section 
 603 of the Revenue Act of 1917, upon the use of yachts, 
 pleasure boats, power boats, and sailing boats, of over 
 five net tons, and motor boats with fixed engines, not 
 used exclusively for trade, fishing, or national defense, 
 or not built according to plans and specifications ap- 
 proved by the Navy Department, a special excise tax 
 to be based on each yacht or boat, at rates as follows: 
 Yachts, pleasure,^ boats, power boats, motor boats with 
 fixed engines, and sailing boats, of over five net tons, 
 length not over fifty feet, $1 for each foot ; length over 
 fifty feet and not over one hundred feet, $2 for each 
 foot; length over one hundred feet, $4 for each foot; 
 motor boats of not over five net tons with fixed engines, 
 $10. 
 
 In determining the length of such yachts, pleasure 
 boats, power boats, motor boats with fixed engines, and 
 sailing boats, the measurement of over-all length shall 
 govern. 
 
 In the case of a tax imposed at the time of the original 
 purchase of a new boat on any other date than July 1, 
 and in the case of the tax taking effect sixty days after 
 tlie passage of this Act, the amount to, be paid shall be 
 tlie same number of twelfths of the amount of the tax as 
 the number of calendar months (including the month of 
 sale, or the month in which is included the sixty-first day 
 after the passage of this Act, as the ease may be) remain- 
 ing prior to the following July 1. 
 
 If the tax imposed by section 603 of the Eevenue Act of 9^^^'^ °i ^x 
 1917, fof the fiscal year ending June 30, 1919, has been 
 paid in respect to the use of any boat, the amount so paid 
 shall under such regulations as the Commissioner, with 
 the approval of the Secretary, may prescribe, be credited • 
 upon the first tax due under this section in respect to the 
 use of such boat, or be refunded to the person paying the 
 
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184 
 
 SPECIAL TAXES. 
 
 Receipts. 
 
 Credit 
 paid. 
 
 of tax 
 
 Penalty. 
 
 Former 
 repealed. 
 
 first tax imposed by this section in respect to the use- of 
 such boat. ' 
 
 Sec. 1004. [Act of February U, 1919 {Jfi Stat., 1057).'] 
 That if the tax imposed by section 407 or 408 of the Eeve- 
 nue Act of 1916, for the fiscal year ending June 30, 1919, 
 has been paid by any person subject to the corresponding 
 tax imposed by this title, collectors may issue a receipt 
 in lieu of special tax stamp for the amount by which the 
 tax under this title is in excess of that paid or payable 
 and evidenced by stamp under the Eevenue Act of 1916. 
 Such receipt shall be posted as in the case of the special 
 tax stamp, as provided by law, and with it, within the 
 place of business of the taxpayer. _ j 
 
 If the corresponding tax imposed by section 407 of the 
 Eevenue Act of 1916 Avas not payable by stamp, the 
 amount paid under such section for any period for which 
 a tax is also imposed by this title may be credited against 
 the tax imposed by this title. • ' 
 
 Sec. 1005. {Act of FelrvMry H, 1919 {^O Stat., 1057). ] 
 That any person who carries on any business or occu- 
 pation for which a special tax is imposed by sections 1000, 
 1001, or 1002, without having paid the special tax therein 
 provided, shall, besides being liable for the payment of 
 such special tax, be subject to a penalty of not more than 
 $1,000 or to imprisonment for not more than one year, or 
 both. 
 
 Sec. 1006. [Act of February 21,, 1919 ^0 Stat., 1057) , 
 amending sec. 1, act of December 17, 19H {38 Stat., 785) .] 
 (See Chapter 10, p. 417.) 
 
 Sec. 1007. [Act of February 2Jf, 1919 (40 Stat., 1057) , 
 ainending sec. 6, act of Decemher 17, 191^ {38 Stat., 785) .] 
 (See Chapter 10, p. 423.) 
 
 Sec. 1008. [Act of February 2J,, 1919 {1^0 Stat., 1057) .] 
 (See Chapter lO, p. 427.) 
 
 Sec. 1009. [Act of February; 24, 1919 {Ifi Stat., 1057) .] 
 That the Act approved Octol'jer 22, 1914, entitled "An 
 Act to increase the internal revenue, and for other pur- 
 poses," and the joint resolution approved December 17, 
 1915, entitled " Joint resolution extending the provisions 
 of the Act entitled ' An Act to increase the internal reve- 
 nue, and for other purposes,' approved October twenty- 
 second, nineteen hundred and fourteen, to December 
 thirty-first, nineteen hundred and sixteen," are hereby 
 repealed, except that the provisions of such Act shall 
 remain in force for the assessment and collection of all 
 special taxes imposed by sections 3 and 4 thereof, or by 
 such sections as extended by such joint resolution, for any 
 year or part thereof ending prior to January 1, 1917, and 
 of all other taxes imposed by such Act, or by such Act as 
 so extended, accrued prior to September 8, 1916, and for 
 the imposition and collection of all penalties or forfeitures 
 which have accrued or may accrue in relation to any of 
 
 such taxes. ... ,, ... „_ 
 
 Digitized by Microsoft® 
 
SPECIAL, taxes; 185 
 
 Sec, 1. [Act of February 14, 1917 {3D Stat., 903), ex- ^^^^1^^^:^^"-'^^^ 
 tract.] That on and after the first day of January, anno ior°s^'fn Saska?' 
 Domini nineteen hundred and eighteen, it shall be un- 
 lawful for any person, house, association, firm, company, 
 club, or corporation, his, its, or their agents, officers^ 
 clerks, or servants, to manufacture, sell, give, or otherwise 
 dispose of any intoxicating liquor or alcohol of any kind 
 in the Territory of Alaska or to have in his or its posses- 
 sion or to transport any intoxicating liquor or alcohol in 
 the Territory of Alaska unless the same was procured and 
 is so possessed and transported as hereinafter provided. 
 
 Whenever the term " liquor," " intoxicating liquor," or Definitions. 
 " intoxicating liquors " is used in this act it shall be 
 deemed to include whisky, brandy, rum, gin, wine, ale, 
 porter, beer, cordials, hard or fermented cider, alcoholic 
 bitters, ethyl alcohol, and all malt liquors, including all 
 alcoholic compounds classed by the United States In- 
 fernal Revenue Bureau as " compound liquors " : Pror 
 vided. That this act shall not apply to methyl or wood 
 alcohol. 
 
 Liquors in possession of common carrier in Alaska on or 
 after January 1, 1916, altliough in course of shipment in 
 interstate commerce, are subject to seizure and forfeiture. 
 (Nortliern Commercial Co. v. Brenneman, 259 Fed. 514.) 
 
 ^ ¥ Sj! !p ^ 
 
 Sec. 26. (Same.) That the issuance by the United ,t^^Pf"='^ , i'^ ^ 
 States of anj' internal-revenue special-tax stamp or re- '^cie evidence. 
 ceipt to any person as a dealer in intoxicating liquors 
 shall be prima facie evidence of the sale of intoxicating 
 liquors by such person during the time the stamp or re- 
 ceipt is in force and effect. 
 
 A copy of such stamp or receipt or of the record of the 
 issuance thereof, certified to by a United States internal- 
 revenue ofiicer having charge of such record, is admissible 
 as evidence in like case and with like effect as the original 
 stamp or receipt. 
 
 Sec. 27. (Same.) That it shall be the duty of the goy- f„^°"*,^^ '° ^"- 
 ernor of Alaska, the United States marshals and their 
 deputies, mayors and members of town councils, town 
 marshals, and police officers of all incorporated towns in 
 Alaska, all Federal game wardens, agents of the Bureau 
 of Fisheries and Forestry Service, customs collectors and 
 their deputies, employees of the Bureau of Education, 
 prosecuting attorneys and their deputies, and all other 
 Federal and Territorial executive officers to enforce the 
 provisions of this act. 
 
 Sec. 12. \Act of March 3, 1917 (39 Stat., im^^^^^t 
 extract.'] The payment of the special tax required or District^ of co- 
 w,holesale or retail liquor dealers by the United- States by fac7e''1^d'enoe"'^ 
 any person or persons other than manufacturers or drug- 
 gists licensed under section five of this act, within the 
 District of Columbia, shall be prima facie evidence that 
 such person or persons are. engaged in keeping and sell- 
 ^ Digitizeaby Microsoft® 
 
186 SBECIAL, TAXES. 
 
 ing, offering and exposing for sale alcoholic liquors con- 
 trary to the provisions of this act, and a certificate from 
 the collector of internal revenue,, his agents, clerks, or 
 deputies showing tlie payment of such tax and the name 
 OT names of person to whom issued, and the names of 
 person or persons, if any, associated with the person to 
 whom such tax receipt is issue5, shall be sufficient evi- 
 dence of the payment of such tax and of the associa- 
 tion of such persons for the selling and keeping, offering 
 and exposing for sale of liquors contrary to the pro- 
 visions of this act in all trials or legal inquiries. 
 
 Digitized by Microsoft® 
 
Chapter Fotjr. 
 
 DISTILLED SPIEITS.i 
 
 Sec. 
 
 3247. Distiller, definition of. 
 
 3248. Distilled spirits, definition of. 
 
 3249. Standard of proof spirits; in- 
 
 struments, etc. 
 
 607. Act of February 24, 1919. Me- 
 ters, tanljs, pipes, etc. 
 
 621. (Same). Meters, locts, seals at 
 fruit distilleries. 
 
 3250. Gallon, definition of. 
 
 3251 (amended). Tax on distilled 
 
 spirits. 
 48. Act of August 27, 1894. Tax on 
 
 spirits ; lien. 
 600(a). Act of February 24, 1919. 
 
 Tax on distilled spirits. 
 600(b). (Same.) Spirits in storage ; 
 
 losses; liquors in customs 
 
 bonded warehouses. 
 600(c). (Same.) Imported per- 
 fumes containing distilled 
 
 spirits. 
 
 604. (Same.) Floor tax on stock on 
 
 hand. 
 
 605. (Same.) Rectified spirits; gin; 
 
 floor tax; reduction of proof; 
 cordials or liqueurs ; blended 
 whiskies ; uniform regula- 
 tions. 
 Actof February 4, 1909. Alcoholic 
 compounds from Porto Rico. 
 
 15. Act of August 10, 1917. Restric- 
 
 tions on use of food materials ; 
 importation of distilled spirits 
 prohibited. 
 
 16. ( Same. ) Commandeering of dis- 
 
 tilled spirits. 
 1. Act of November 21, 1918. Sales 
 for beverages after June 30, 
 1919; grains, fruits, etc., for 
 making beverages after May 1, 
 1919, prohibited ; importing 
 during war ; prohibitory zones 
 about coal mines, etc. 
 601. , (Act of February 24, 1919. ) Im- 
 portation of spirits. 
 Act of March 3, 1891. Manufac- 
 turer of sorghum sugar author- 
 ized to remove spirits In bond, 
 free of tax, for use in manu- 
 facture of sugar from sor- 
 ghum. 
 
 3252. Adding substances to create fic- 
 
 titious proof; penalty. 
 
 3253. Tax on spirits removed without 
 
 deposit in warehotise; assess- 
 ment. 
 
 3254. Products of distillation contain- 
 
 ing spirits taxable. 
 
 Sec. 
 
 3255 (amended). Brandy made from 
 apples, peaches, or grapes, etc., 
 exemptions. 
 5. Act of March 1, 1879. Distil- 
 leries of 30 gallons capacity or 
 less ; exemptions. 
 
 3256. Evading tax; penalty. 
 
 3257. Distiller defrauding or attempt- 
 
 ing to defraud ; penalties. 
 
 3258. Registry of stills ; penalties. 
 
 3259. Notice of intention to carry on 
 
 business of distiller or recti- 
 fier ; penalty. 
 
 3260 ( amended ) . DlstiUer's bonds ; pen- 
 alty. 
 602. Act of February 24, 1919. Ex- 
 emption of ethyl alcohol. 
 67. Act of August 28, 1894. Refusal 
 to approve bond in certain 
 cases. 
 
 3261. Bond not to be approved until 
 law is complied with ; penalty. 
 
 3262 (amended). Distiller must be 
 owner in fee simple, or have 
 written consent of owner, etc. 
 
 3263. Plan of distillery. 
 
 3264 (amended). Surveys. 
 602. Act of February 24, 1919. Ex- 
 emption of ethyl alcohol. 
 
 3265. Notice by manufacturer of a 
 
 still. Setting up. a still with- 
 out permit; penalty. 
 
 3266. Distilling on certain premises 
 
 prohibited; ijenalty. 
 
 3267. Receiving-cisterns. 
 
 3268. Breaking locks, gaining access to 
 
 cisterns, etc. ; penalty. 
 
 3269. Furnaces, tubs, doublers, worm 
 
 tanks ; penalty. 
 
 3270. Apparatus and fastenings. 
 
 3271. Distillery warehouses. 
 
 Act of January 8, 1874. Use of 
 warehouse by successors in cer- 
 tain cases. 
 
 3272. When a warehouse becomes un- 
 
 safe. 
 
 3273. Storekeepers have charge under 
 
 direction of collector. 
 
 3274. Custody and management of 
 
 , warehouses. 
 
 3275. Distiller to keep distillery acces- 
 
 sible ; penalty. 
 
 3276 (amended). Authority of revenue 
 officers to enter distilleries. 
 Obstructing officer ; penalty. 
 
 3277. Distillers and rectifiers to fur- 
 nish facilities for examination ; 
 penalty. 
 
 See Chapter Seven, " National Proliibitlon." 
 
 Digitized by Microsoft® 
 
 187 
 
188 
 
 DISTILLED SPIRITS. 
 
 Sec. 
 
 3278. Officers can break up ground or 
 
 walls in order to examine. 
 
 3279. Signs to be put up by distillers 
 
 and rectifiers ; penalty for neg- 
 lect and for using false signs, 
 etc. 
 
 3280. Distillers not to carry on busi- 
 
 ness until thf law is complied 
 with, nor wimin 600 feet of a 
 rectifying establishment. 
 
 3281. Carrying on business without 
 
 giving bond. 
 16. Act of February 8, 1875. Car- 
 rying on distilling without pay- 
 ment of tax. 
 9. Act of March 1, 1879. Arrest of 
 persons operating illicit dis- 
 tillery. 
 3282 (amended) . Vinegar establish- 
 ments; penalty. 
 Act of June 14, 1879. Vinegar 
 factories before March 1, 1879. 
 
 3283. No process for distilling between 
 
 11 p. m. of Saturday and 1 
 a. m. of Monday"; penalty. 
 602. Act of February 24, 1919. Ex- 
 emption of ethyl alcohol. 
 
 3284. Using material or removing spir- 
 
 its in absence of storekeeper ; 
 penalty. 
 
 3285 (amended). Emptying fermenting 
 
 tubs. 
 602. Act of February 24, 1919. Ex- 
 emption of ethyl alcohol. 
 
 3286 (amended). Drawing off water, 
 
 cleansing worm-tub, etc. ; pen- 
 alty. 
 
 3287 (amended). Kemoval of spirits to 
 
 warehouse. 
 602. Act of February 24, 1919. Spirit 
 packages, tanks, pipe lines, 
 etc. ; withdrawal from receiv- 
 ing cisterns. 
 
 3288. Tax-paid spirits not to remain 
 on distillery premises. 
 
 oS289. Forfeiture of unstamped pack- 
 ages. 
 
 3290. Gauger employing distiller, etc., 
 
 to use brands or perform his 
 duties ; penalty. 
 
 3291. Gauger's returns. 
 
 3292. Fraudulent gauging, etc. ; pen- 
 
 alty. 
 
 3293 (amended). Distiller's entry of 
 
 deposit in warehouse; ware- 
 housing bonds. 
 
 49. Act of August 27, 1894. Ware- 
 
 housing and transportation 
 bonds. 
 
 3294 (amended). AVithdrawal from 
 
 warehouse. 
 
 50. Act. of August 27, 1894. Allow- 
 
 ance for leakage, spirits may 
 be regauged, etc. 
 1, 2. Act March 3, If 
 for loss. 
 Act of January 13, 1903. 
 
 miz> 
 
 Sec. 
 
 51-59.. Act of Aug. 27, 1894. General 
 bonded warehouses for dis>- 
 tilled spirits, other than fruit 
 brandy. 
 Acts of March 3, 1877, and Octo- 
 ber 18, 1888. Special bonded 
 warehouses for fruit brandy. 
 
 3295 (amended). Gauging, stamping, 
 and branding spirits removed 
 from warehouse.- 
 
 3296. Removal, concealment, etc., of 
 
 spirits contrary to law ; pen- 
 alty. 
 
 3297. Alcohol withdrawn for scientific 
 
 purposes; penalty. 
 Act of May 3, 1878, as amended. 
 Same. 
 " Act of June 4, 1912. Same. 
 
 3298. Power of officers to detain pack- 
 
 ages forty-eight hours. 
 
 3299. Forfeiture of spirits unlawfully 
 
 removed from distillery. 
 
 3300. Storekeeper unlawfully remov- 
 
 ing spirits, or allowing same 
 to be removed, etc. ; penalty. 
 3301 (amended). Storekeepers' ware- 
 house books and returns. 
 
 3302. Storekeepers to have charge of 
 
 distillery and keep account of 
 materials, etc. 
 
 3303. Distillers' books. 
 
 3304. Books to be open to inspection 
 
 and preserved two years. 
 3303. False entries, or omitting to keep 
 or produce books ; penalty. 
 
 3306. Using false weights or measures, 
 
 or unregistered materials ; 
 penalty. 
 
 3307, 3308. Distillers' returns. 
 
 3309 (amended). Monthly examination 
 
 of distiller's returns, assess- 
 ment, etc., capacity tax. 
 602. Act of February 24, 1919. Ex- ■ 
 emptioa of ethyl alcohol. 
 6. Act of March 1, 1879. Relief from 
 assessments for deficiencies, 
 etc., in certain cases. 
 60. Act of August 27, 1894. Assess- 
 ments to be at rate of tax im- 
 posed by act August 28, 1894. 
 
 3310 (amended). Commencement and 
 
 suspension of work ; penalties. 
 3311. Reduction of capacity ; penalty 
 
 for tampering with locks, etc. 
 3312,3313. Stamps. 
 
 3314 (amended). Accountability for 
 
 stamp books ; export stamps. 
 606. Act of February 24^ 1919. Stamps 
 for rectified spirits; discon- 
 tinuance of stamps. 
 
 3315 (amended). Restamping spirits, 
 
 fermented liquors, tobacco, 
 
 cigars, etc., when stamps are 
 
 lost or destroyed. 
 .531^^fficer Issuing or permitting use 
 OSOTZKJ pf stamps, contrary to law-; 
 
 penalty. 
 
DISTILLED SPIRITS. 
 
 189 
 
 5331. 
 
 Sec. 
 
 17. Act of February 8, 1875. Imita- 
 tion stamps ; penalty. 
 
 3317 (amended). Rectitiers' returns; 
 
 rectifiers intending to defraud ; 
 penalty. 
 Act of July 16, 1892. Rectifier's 
 notice of intention to rectify. 
 
 3318 (amended). Rectifiers' and whole- 
 
 sale dealers' books and tran- 
 scripts ; penalties. 
 62. Act of August 27, 1894. Distiller 
 required to keep book. 
 
 3319. Purchase of quantities greater 
 than 20 gallons for many per- 
 sons other than, etc. ; penalty. 
 
 3320 (amended). Gauging and stamp- 
 ing rectified spirits. 
 1. Act of March 4, 1915. Gauging 
 at rectifying establishments by 
 rectifiers. 
 
 3321. (Repealed.) 
 
 3322. Filling blanks and affixing and 
 
 yarnlshing stamps. 
 3323 (amended). Spirits drawn into 
 
 new packages to be gauged and 
 
 branded ; forfplture. 
 £324. Stamps and brands to be effaced 
 
 from empty casks ; penalties. 
 3."25. Buying or selling spirit casks 
 
 having inspection marks ; pen- 
 * alty. 
 
 3326. Changing stamps, shifting spirits, 
 
 etc. ; penalty. 
 
 3327. Removal within certain hours 
 
 from distillei'y or rectifier's 
 premises; penalty. 
 
 3328. (Obsolete.) 
 
 3329 (amended). Drawback on spirits. 
 
 3330 ( amended ) . Exportation of .spirits 
 
 withdrawn from bonded ware- 
 houses ; relanding ; penalties. 
 
 1. Act of June 9, 1874, as amended. 
 Transportation bond may be 
 taken ; change of package. 
 
 1. Act of December 20, 1879. Al- 
 lowance for loss during trans- 
 portation. 
 
 Sec. 3247. E^^ery person who produces distilled spir- 
 its, or who brews or makes mash, wort, or wash, fit for 
 distillation or for the production of spirits, or who, by 
 any process of evaporization, separates alcoholic spirit 
 from any fermented substance, or who, making or keep- 
 ing mash, wort, or wash, has also in his possession or 
 use a still, shall be regarded as a distiller. 
 
 See section 3282 as to vinegar makers and restrictions 
 respecting place of making mash fit for distillation, 
 page 231. 
 
 To make one in possession of a still a distiUer because 
 he keeps mash, wort, or wash, the mash, wort, or wash 
 must be such .as will produce spirits on distillation. 
 (United States v. House and Lot No. 3 Abattoir Place; 25 
 Int. Rev. Rec, 319; Fed. Gas. No. 15166.) 
 
 When regarded £V^,Yj^|i^^^^p^^tion-so-called 
 
 pomace wine. (T, 
 
 Sec. 
 
 624. Act of February 24, 1919. Trans- 
 fer of distilled spirits to tank 
 cars for export. 
 626. (Same.) Bottling gin in bond 
 for export. 
 Release of distillery before judg- 
 ment, in what cases. 
 3332 (amended). Stills, etc., to be de- 
 stroyed in certain cases. 
 3333. Burden of proof. 
 3334 (amended). Spirits sold under 
 judicial process subject to tax. 
 Provision where spirits will 
 not sell for price equal to tax. 
 11, 12, and 13. Act March 1, 1879. Im- 
 ported liquor stamps, etc. 
 Act of March 3, 1897. Bottling 
 
 of distilled spirits in bond. 
 Act of March 1, 1913. Shipments 
 into State, etc., in violation of 
 law thereof prohibited. 
 5. Act of March 3, 1917. Advertise- 
 ments in certain States ; ship- 
 ments into States prohibiting 
 sale. 
 1110. Act of October 3, 1917. Con- 
 struction of section 5, act of 
 March 3, 1917. 
 1407. Act of February 24, 1919. Ex- 
 tension of act of March 3, 1917, 
 as amended, to District of 
 Columbia. 
 Act June 7, 1906. Denatured 
 
 alcohol. 
 Act March 2, 1907. Amendatory 
 
 of the denatured alcohol act. 
 Act of October 3, 1913. Manu- 
 facture by farmers of alcohol 
 for denaturatlon ; special tax 
 on manufacturers of stills ; 
 storage cisterns. 
 603. Act of February 24, 1919. Re- 
 moval for denaturatlon free of 
 tax ; allowance for leakage, etc. 
 
 Distiller, 
 nition of. 
 
 wtiere sugar 
 
its,, defLnitioa oi. 
 
 190 DISTILLED SPIEITS., 
 
 has been added. (T. D. 2012.) Cider to which sugar has 
 beea added to produce fermentation. {T. D. 2675-) 
 
 An persons having an interest in the business of distilling 
 or directly aiding in the production of spirits for their use 
 or benefit are distillers, and amenal:)le to the provisions of 
 the Internal Revenue laws. (United States v.. Howard, 
 Fed. Cas. No. 15401 ; 11 Int. Bev. Rec., 119.) 
 
 A corporation may carry on the business of distilling. 
 Also, meaning of the word " person " in this chapter. (15 
 Op. Atty. Gen., 230 ; 23 Int. Rev. Rec, 141.) ~ 
 
 Distilled spir- Sec. 3248. Distilled spirits, spirits, alcohol, and alco- 
 nolle spirit, withm the true intent and meanmg or this 
 act, is that substance Iknown as ethyl alcohol, hydrated 
 oxide of ethyl, or spirit of wine, which is commonly pro- 
 duced by the fermentation of grain, starch, molasses, or 
 sugar, including all dilutions and mixtures of this sub- 
 stance ; and the tax shall attach to this substance as soon 
 as it is in existence as such, whether it be subsequently 
 separated as pure or impure spirit, or be immediately, or 
 at any subsequent time, transferred into any other sub- 
 stance, either in the process of original production or by 
 any subsequent process. 
 
 Solidified whiskey. (T. D. 1735.) 
 
 Extracting spirits from wood. (T. Ds. 1823, 2331, 2565>) 
 
 When tax attaches. (Greenbrier Distillery Co. v. John- 
 son, 88 Fed., 638; Clay v. Swope, 53 Fed., 999.) 
 
 " Pomace " or " raisin " wine produced from mash fit for 
 distillation, is an alcoholic spirit. (T. D. 1949.) • 
 
 T. D. 1949 explained- (T. Ds. 1972, 2002.) 
 
 roof "^T^irits"^ ^^'^' ^^*^' -'^^*'o^ spirit shall be held to be that alcoholic 
 prevention^'" tof liquor which coutaius oue-half its volume of alcohol of a 
 frauds; spcclfic gravity of seven thousand nine hundred and 
 
 thirty -nine ten thousandths (.7939) at sixty degrees Fah- 
 renheit. And for the prevention and detection of frauds 
 hj distillers of spirits, the Commissioner of Internal 
 Eevenue may prescribe for use such hydrometers, sac- 
 chai'ometers, weighing and gauging instruments,, or other 
 means for ascertaining the quantity, gravity, and produc- 
 ing capacity of any mash, wort, or beer used, or to be used, 
 in the production of distilled spirits, and the strength and 
 quantity of spirits subject to tax, as he may deem neces- 
 sary; and he may prescribe rules and regulations to 
 secure a uniform and correct system of inspection, weigh- - 
 ing, marking, and gauging of spirits. 
 
 Meters. (Tice r. United States, 99 U. S., 286; Sausser v. 
 United States, 9 Ct. Cls., 338 ; 11 Id., 538 ; Finch v. United 
 States, 12 Ct. Cls., 364 ; 102 U. S. (12 Otto) , 269 ; 26 Int. Re^. 
 Rec, 410.) 
 
 By the act of June 6, 1872 (17 Stat., 239), aU the pro- 
 visions of the act of July 20, 1868, touching meters were 
 repealed. 
 
 On the 1st of May, 1892, the method of gauging of spirits 
 by rod, theretofore used, was changed to a weighing system, 
 by which the number of \nne gallons contents is determined 
 by the weight of the package. Weighing beams are fur- 
 nished for the use of distilleries and i-ectifying houses, and 
 their use made obligatory, except at fruit distilleries of a 
 production of less than 10,000 proof gallons during the 
 
DISTILLED SPIRITS. 191 
 
 season, and at rectifying houses rectifying less than 5,000 
 proof gallons of spirits annually. (Gangers' Weighing 
 Manual, 1906.) 
 
 Weighing spirits: Commissioner's annual report (1892). 
 (38 Int. Bev. Eec, 13.) Weighing system estendetl. (Int. 
 Rev. Cir. No. 742 ; T. D. 1717. ) 
 
 Circular No. 218, August 1, 1879, authorizes the outage of 
 packages of les? than 63 gallons capacity to be 1 gallon 
 where Corey's apparatus for aging whisky and other spirits 
 in distillery warehouses is used, and modifies Circular No. 
 180 accordingly. (25 Int. Rev. Rec, 245.) 
 
 See Gaugers' Manual, 1906, for rule applicable to all 
 apparatus for agjng whisky, which has been approved by the 
 Commissioner. 
 
 The Internal Revenue Gaugers* Weighing Manual, 1911, 
 embraces regulations and instructions and tables prescribed 
 by the Commissioner of Internal Revenue by virtue at sec- 
 tion 3249, Revised Statutes. 
 
 What is the meaning of the term " Whisky " under the 
 . pure-food act, and the proper regulations for branding vari- 
 ous kinds of whisky under the internal-revenue act/ (De- 
 cision by President Taft, December 27, 1909.) 
 
 "Proof" defined. (Louisville Public Warehouse Co. v. 
 Collector of Customs, 49 Fed., 561.) 
 
 " Specific gravity " defined. (Louisville Public Ware- 
 house Co. V. CoUeetor of Customs, 49 Fed., 561.) 
 
 Directions for taking gravity of distillery beer and slop. 
 (T. D. 1840.) 
 
 Sec. 607. [Act of February 24, 1919 (^0 Stat, 1057).} .Meters, tanks. 
 That the Commissioner, with the approval of the Secre- ^^^^' ''"" 
 tary is hereby authorize^ to require at distilleries, brew- 
 eries, rectifying houses, and wherever else in his judgment 
 such action may be deemed advisable, the installation of 
 meters, tanks, pipes, or any other apparatus for the pur- 
 pose of protecting the revenue, and such meters, tanks, 
 and pipes and all necessary labor incident thereto shall be 
 at the expense of the person on whose premises the in- 
 stallation is required. Any such person refusing or neg- 
 lecting to install such apparatus when so required by the 
 Commissioner shall not be permitted to conduct business 
 on such premises. 
 
 Sec. 621. [Act of February H, 1919 {J^O Stat., 1057) .] ^^ ^eter^s, locks. 
 That the Commissioner, by regulations to be approved by distilleries. 
 the Secretary, may require the use at each fruit distillery 
 of such spirit meters, and such locks and seals to be affixed 
 to fermenters, tanks, or other vessels and to such pipe con- 
 nections as may in his judgment be necessary or expedient, 
 and is hereby authorized to assign to any such distillery 
 and to each winery where wines are to be fortified such 
 number of gaugers or storekeeper-gaugers in the capacity 
 of gaugers as may be necessary for the proper supejrvision 
 of the manufacture of brandy or the making or fortifying 
 of wines subject to tax imposed by this section ; and the 
 compensation of such officers shall not exceed $5 per diem 
 while so assigned, together with their actual and neces- 
 sary traveling expenses, and also a reasonable allowance 
 for their board bills, to be fixed by the Commissioner, 
 with the approval of the Secretary, but not to exceed 
 
 $2.50 per diem for such board bills. 
 
 ^ Digitized by Microsoft® 
 
192 DISTILLED SPIRITS. 
 
 in*'S°e"/deflni! ^EC. 3250. In all sales of spirits a gallon shall be held 
 
 tion of. ' to be a gallon of proof spirit, according to the standard 
 
 prescribed in the preceding section, set forth and declared 
 
 for the inspection and gauging of spirits throughout the. 
 
 United States. 
 
 See definition of gallon, as relates to fermented liquors, in 
 section lil, act of March 1, 1S79. (See p. 310.) 
 
 Repealed by Sec. 3251. [Amended hy sec. 1, act of March S, 1875 
 Aug. M, 1894?' (^^ ^M-^ 339).'] /[There shall be levied and collected on 
 all distilled spirits produced in the United States on 
 which the tax prescribed by law has not been paid, a 
 tax of ninety cents on each proof gallon, or wine gallon 
 when below proof, to be paid by the distiller, owner, or 
 person having possession thereof before removal from 
 the distillery bonded warehouse: Provided, That dis- 
 tilled spirits lawfully deposited in a distillery bonded 
 warehouse prior to the first day of August, eighteen 
 
 Obsolete. hundred and seventy-two may be withdrawn on payment 
 of the taxes thereon at the rate, within the time, and in 
 the manner provided by law at the time of such deposit.] 
 The tax on such spirits shall be collected on the whole 
 number of gauge or wine gallons when below proof, and 
 shall be increased in proportion for any greater strength 
 than the strength of proof spirit, as defined in this title ; 
 [and any fractional part of a gallon amounting to one- 
 half gallon or over in a cask or package shall, be taxed 
 as a gallon, and any fractional part of a gallon less than 
 one-half gallon in any cask or package shall be exempt 
 from tax]. Every proprietor or possessor of, and every 
 person in any manner interested in the use of, any still, 
 distillery, or distilling apparatus, shall be jointly and 
 severally liable for the taxes imposed by law on the dis- 
 tilled spirits produced therefrom, and the tax shall be a 
 
 Lien, first lien on the spirits distilled, the distillery used for 
 
 distilling the same, the stills, vessels, fixtures, and tools 
 therein, the lot or tract of land whereon the said dis-- 
 tillery is situated, and on any building thereon from the 
 time said spirits are in existence as such tintil the said 
 tax is paid. 
 
 Part in brackets repealed by act of August 27, 1894. 
 Fractional parts of a gallon. (See p. 193.) 
 
 The stockholders of a corporation engaged In operating 
 a distillery are "persons interested in the use of the dis- 
 tillery," within the meaning of section 3251, which declares 
 that every proprietor and possessor, " and every person in 
 any manner interested -In the use of " a distillery, shall be 
 jointly and severally liable for the taxes imposed by law 
 on the distilled spirits produced therefrom. (United States 
 V. Wolters, 46 Fed., 509 ; United States v. Howard, 11 Int. 
 Rev. Rec, 119 ; Wood v. United States, 204 Fed., 55 ; T. D. 
 1836.) 
 
 When tax becomes due. (United States Fidelity & Guar- 
 anty Co. of Baltimore v. United States, 220 Fed., 592.) 
 
 Taxability of persons selling warehouse receipts. (T. D. 
 2784.) 
 
 Digitized by Microsoft® 
 
DISTILLED SPIRITS. 193 
 
 Drawing samples from packages after they have been re- 
 saiiged and before arrival of tax-paid stamps is unauthor- 
 ized. (T. D. 2397.) 
 
 Sec. 48. [Act of August 87, 1894 {^8 Stat., 509) .] That 
 on and after the passage of this act there shall be levied 
 and collected on all distilled spirits in bond at that time, ^.,Tax ^ on^^ dis- 
 or that have been or that may be then or thereafter pro- 
 duced in the United States, on which the tax is not paid 
 before that day, a tax of one dollar and ten cents on each 
 proof gallon, or wine gallon when below proof, and a 
 proportionate tax at a like rate on all fractional parts 
 of such proof or wine gallon : Provided, That in comput- 
 ing the tax on any package of spirits all fractional parts 
 of a gallon, less than one tenth, shall be excluded. 
 
 The Commissioner of Internal Revenue, with the ap- Fractional 
 proval of the Secretary of the Treasury, shall prescribe ^^ 
 and furnish suitable stamps denoting the payment of the stamps. 
 internal-revenue tax imposed by this section; and until 
 such stamps are prepared and furnished, the stamps now 
 used to denote the payment of the internal-revenue tax 
 on distilled spirits shall be affixed to all packages contain- 
 ing distilled spirits on which the tax imposed by this 
 section is paid ; and the Commissioner of "Internal Reve- 
 nue shall, by assessment or otherwise, cause to be collected 
 the tax on any fractional gallon contained in each of 
 such packages as ascertained by the original gauge, or ^j,^^'^'^'^*''"' °' 
 regauge when made, before or at the time of removal of 
 such packages from warehouse or other place of storage ; 
 and all provisions of existing laws relating to stamps de- 
 noting the payment of internal-revenue tax on distilled 
 spirits, so far as applicable, are hereby extended to the bie^™ appiica- 
 stamps provided for in this section. 
 
 That the tax herein imposed shall be paid by the dis- 
 tiller of the spirits, on or before their removal from the 
 distillery or place of storage, except in case the removal 
 therefrom without payment of tax is authorized by law ; 
 and (upon spirits lawfully deposited in any distillery 
 warehouse, or other bonded warehouse, established under 
 internal-revenue laws) within eight years from the date by'''^the°distinir 
 of the original entry for deposit in any distillery ware- -witHn eight 
 house, or from the date of original gauge of fruit brandy ^**''"' 
 deposited in special-bonded warehouse, except in case of 
 withdrawal therefrom without payment of tax as author- ♦ 
 ized by law. 
 
 Apple brandy included in terra distilled spirits. (United 
 States V. Ridenour, 119 Fed., 411.) 
 
 ^EC. 600. [Act of February 2i, 1919 HO Stat., 1057). 1 ^^^^^^^^^''^J^^- 
 (a) That there shall be levied and collected on all dis- ' ^ '^™"' 
 tilled spirits now in bond or that have been or that may 
 be hereafter produced in or imported into the United 
 States, except such distilled spirits as are subject to the 
 tax provided in section 604, in lieu of the internal-revenue 
 taxes now imposed thereQf^fff^^^y f^M^M'^^ (°^' ^^ 
 140184°— 20 13 
 
storage, 
 
 194 DISTIIXED SPIEITS. 
 
 ■withdrawn for beverage purposes or for use in the manu- 
 faeture or production of any article used or intended for 
 use as a beverage, a tax of $6.40) on each proof gallon, 
 or wine gallon when below proof, and a proportionate 
 tax at a Ske rate on all fractional parts of such proof or 
 wine gaDon, to be paid by the distiller or iinporter when 
 withdrawn, and collected under the provisions of exist- 
 ing law. 
 Spirits in (b) That the tax imposed by subdivision (a) on <iia- 
 tilled spirits intended for IJeverage purposes shall not be 
 due or payable on such spirits while stored in any dis- 
 tillery, bonded warehouse, or special or general tended 
 warehouse, and which, pursuant to any Act of Congress 
 or proclamation of the President of the United States, 
 can not be lawfully sold or removed from any such ware- 
 house during tlie period of prohibition fixed by such Act 
 or proclamation ; and all warehousing bonds or transpor- 
 tation -and warehousing bonds conditioned for the pay- 
 ment of tax on any such spirits so stored on the date such 
 proMbition takes effect shall as to all such spirits actually 
 so stored be canceled and discharged, provided the dis- 
 tiller of such spirits shall in lieu of such bonds and prior 
 to their cancellation execute a bond in a penal sum of not 
 less than $10,000, with sureties satisfactory to the collec- 
 tor of tlie district, conditioned that the principal shall, 
 . during the period of such prohibition, safely keep or 
 cause to be kept in good condition all such spirits and the 
 warehouse in which the same are stored, and shall not 
 remove or suffer to be removed from warehouse, contrary 
 to law, any such spirits during the period of such prohi- 
 bition; and the bond herein prescribed shall be in such 
 further sum and shall contain such further conditions as 
 the Commissioner, with the approval of the) Secretary, 
 may by regulations require. The distiller may, subject to 
 the provisions of this section, be permitted to retain in 
 any such bonded warehouse distilled spirits on which, 
 under the terms of any existing bond, the tax imposed 
 tliereon becomes due and payable prior to the date such 
 prohibition takes effect : Provided,. That on the removal 
 of such prohibition the distiller shall, as to all spirits as 
 to which the bonded period fixed by law has not expired 
 and which remain stored in warehouse, execute new and 
 * satisfactory bond in the form required by existing la^v, 
 conditioned for the payment of the tax on all such 
 spirits; and all provisions of existing law relating to 
 such bonded warehouses, or the storage of spirits therein, 
 or to the execution of new or additioiial bonds, so far^s 
 applicable, shall continue in force as to all distilled spir- 
 its rebonded under the provisions of this section. 
 Allowance for Upon the withdrawal of distilled spirts from bonded 
 ^' warehouse, after the period of prohibition has ended, 
 
 and under the conditions imposed by section 50 of an Act 
 
DISTILLED SPIRITS. 196 
 
 poses,'' approved August 28, 1894, an allowance for loss 
 by leakage or other unavoidable cause, not exceeding one 
 proof gallon as to packages of a capacity of not less than 
 40 wine gallons, may be made in addition to tliat pro- 
 vided in said section 50, as amended; ahd a like addi- 
 tional allowance of one proof gallon as to each package 
 withdrawn may be made for each period of four months, 
 or fraction thereof, for such spirits as shall have re- 
 mained in warehouse during the period of prohibition 
 and after the expiration of the maximum leakage period 
 fixed by that section. 
 
 Under regulations prescribed by the Secretary, any im- Liquors in cus- 
 ported distilled spirits, wines or other liquors which may iTehouse."'^^'^ 
 be in any customs bonded warehouse under the customs 
 laws on the date such prohibition takes effect shall he 
 permitted to remain therein without payment of any 
 taxes or duties thereon, beyond the three-year period pro- 
 vided in section 2971 of the Kevised Statutes, during such 
 period of pi-ohibition ; and may be exported at any time 
 during such extended period. Any imported spirits, 
 wines, or other liquors as to which the three-year bonded 
 period majr expire after the passage of this Act and prior 
 to the date such ptohibition takes effect may at the option 
 of the owner remain in bond during such period of pro- 
 hibition. 
 
 (c) In lieu of the pt§rnal -revenue tax now imposed jyj^p"'^'^^^^^^??^- 
 thereon by law there shall be levied and collected upon ing distilled 
 all perfumes hereafter imported into the United States ^^'"*°" 
 containing distilled spirits, a tax of $1.10 per wine gal- 
 lon, and a proportionate tax at a like rate on all frac- 
 tional parts of such wine gallon. Such tax shall be col- 
 lected by the collector of customs and deposited as in- 
 ternal-revenue collections, under such rules and regula- 
 tions as the Commissioner, with the approval of the Sec- 
 retary', may prescribe. 
 
 Eiglit-year-oW spirits In bonded warehouses. (T. D. 
 2S26.) 
 
 Rebonding. (T. D. 2806.) 
 
 Sec. ff04. [Act of February-U, 1919 {Jfi Stat., 1057). 1 
 That upon all distilled spirits produced in or imported 
 into the United States upon wliicli the internal-ievenue 
 tax now imposed by law has been paid, and which, on 
 the day after the passage of this Act, are held by any 
 person and intended for sale or for use in the manufac- 
 ture or production of any article intended for sale, there 
 shall be levied, assessed, collected, and paid a floor tax 
 of $3.20 (if intended for sale for beverage purposes or 
 for use in the manufacture or production of any article 
 used or intended for use as a beverage) on each proof 
 gallon,' and a proportionate tax at a like rate on all 
 fractional parts of such proof gallon. 
 
 Distilled spirits held by manufacturers and intended not 
 for sale as spirits, but. lor manufacture IrUjxnonbeverage 
 
 for sale as spirits, but- tqr manufacture irj.a.n 
 products, are not stibS3S%^^y #P®'.Sig^) 
 
 Floor tax on 
 stock on hand. 
 
spiritB. 
 
 196 DISTILLED SPIRITS. 
 
 Regulations. (T. D. 2801.) 
 
 Bonds for extending date of payment of floor taxes. (T. D. 
 2798.) 
 
 Spirits in custody of court of bankruptcy. (T. D. 2749.) 
 
 Release of spirits seized for floor-tax violation. (T. D. 
 2877. ) 
 
 Rectified Sec. 605. [Act of Felruary 2h, 1919 UO Stat., 1057).] 
 That in addition to the tax imposed by this Act on dis- 
 tilled spirits and wines, Ihere shall be levied, assessed, 
 collected, and paid, in lieu of the tax imposed by section 
 304 of the ReA-enue Act of 1917, a tax oi 30 cents on each 
 proof gallon and a proportionate tax at a like rate on 
 all fractional parts of such proof gallon on all distilled 
 spirits or wines hereafter rectified, purified, or refined in 
 such manner, and on all mixtures hereafter produced in 
 such manner, that the person so rectifying, purifying, 
 refining, or mixing the same is a rectifier within the 
 meaning of section 3244 of the Eevised .Statutes, as 
 
 oin. amended : Provided, That this tax shall not apply to gin 
 
 produced by the redistillation of a pure spirit over 
 jimiper berries and other aromatics. 
 
 noM tax. Upon all such articles heretofore produced, and whicK 
 
 on the day after the passage of this Act are held by any 
 person and intended for sale, there shall be levied, as- 
 sessed, collected, and paid a floor tax of 15 cents on each 
 proof gallon, and a proportionate tax at a like rate on 
 all fractional parts of each prdof gallon; and all such 
 distilled spirits so held and not contained in the dis- 
 tillers' original stamped packages, or in bottles or other 
 containers bearing the distillers' original Jabels, shall 
 for the purpose of this section be regarded as rectified 
 spirits. 
 
 Regiilations. (T. D. 2801.) 
 
 Bonds for extending date of payment of floor taxes. 
 (T. D. 2798.) 
 
 Spirits in custody of court of bankruptcy. (T. D. 2749.) 
 
 Wholesale or retail liquor dealers using " liat filter " must 
 pay tax as rectifiers. (T. D. 2953.) 
 
 prM?.^""""" ° ' When the process of rectification is completed and the 
 taxes prescribed by this section have been paid, it shall 
 be unlawful for the rectifier or other dealer to reduce 
 in proof or increase in volume such spirits or wine by 
 the addition of water or other substance ; nothing herein 
 contained shall, however, prevent a rectifier from using 
 again in the process of rectification spirits already recti- 
 fied and upon which the taxes have theretofore been jiaid. 
 
 Reduction of proof. (T. D. 2566.) 
 
 Cordials or The taxes imposed by this section shall not attach to 
 
 liqueurs, blended -,■ ^ t ^ i-i , •. -i ^ • ^ 
 
 ■whiskies. cordials Or liqueurs on which a tax is imposed and paid 
 
 under section 611 or 613, nor to the mixing and blending 
 of wines, where such blending is for the sole purpose of 
 perfecting ,such wines according to commercial. standards, 
 nor to blends made exclusively of two or more pure 
 Digitized by Microsoft® 
 
DISTILLED SPIRITS. 197 
 
 straight whiskies aged in wood for a period not less than 
 four years and without the addition of coloring or flavor- 
 ing naatter or anj- other substance than pure water and if 
 not reduced below ninety proof: Provided, That such 
 blended whiskies shall be exempt from tax under this 
 section only when compounded under the immediate 
 supervision of a revenue officer, in such tanks and under 
 such conditions and supervision a^ the Commissioner, 
 with the approval of the Secretary, may prescribe. 
 
 All distilled spirits or wines taxable under this section uniform regu- 
 shall be subject to uniform regulations concerning the 
 use thereof in the manufacture, blending, compounding, 
 mixing, marking, branding, and sale of whisky and rec- 
 tified spirits, and no discrimination whatsoever shall be 
 made by reason of a difference in the character of the " 
 material from which same may have been produced. 
 
 The business of a rectifier of spirits shall be carried on, 
 and the tax on rectified spirits shall be paid, under such 
 rules, regulations, and bonds as may be prescribed by 
 the Commissioner, with the approval of the Secretary. 
 
 All products of rectification from molasses, spirits, or 
 spirits other tlian grain at rectifying houses, will be marked 
 and branded in the same manner as spirits derived from 
 grain. (T. D. 2548.) 
 
 Distilled spirit's ; marking, branding, and stamping. 
 (T. D. 2560.) 
 
 . Definition of rectifier. (Sec. 3244, R. S., subdivision 
 third.) 
 
 Whoever violates any of the provisions of this section Penalties. 
 shall be deemed to be guilty of a misdemeanor and, upon 
 conviction, shall be fined not more than $1,000 or iin- 
 prisoned not more than two years, and shall, in addition, 
 be liable to double the tax evaded, together with the tax, 
 to be collected by assessment or on any bond given. 
 
 [Act of February 1^, 1909 {35 Stat. 594) •] That upon Bay mm trom 
 bay .rum, or any article containing alcohol, hereafter P°''t° ^''=°- 
 brought from Porto Eico into the United States for con- 
 sumption or sale there shall be paid a tax on the spirits 
 contained therein of one dollar and ten cents per proof 
 gallon, to be collected at the port of entry by the collector 
 of internal revenue of the district in which the port is 
 located. The Commissioner of Internal Revenue, with 
 the approval of the Secretary of the Treasury, is hereby 
 authorized to make such rules and regulations as may be 
 necessary to carry this Act into effect. 
 
 Regulations February 15, 1909. (Cir. 734; T. D. 1462.) 
 Bay rum brought from Porto Rico prior to this act was 
 
 taxable under then existing laws. (Jordan v. Roche, 228 
 
 IJ. S., 436; T. D. 1849.) 
 
 Digitized by Microsoft® 
 
198 
 
 DISTILLED SPIRITS. 
 
 Rates of tax on spirits under the different laics which have ieen 
 
 in force. 
 
 Tax 
 per 
 gal- 
 lon. 
 
 Acts imposing 
 tax. 
 
 Acts repealing 
 tax. 
 
 Length 
 ol tima 
 
 rates 
 
 were, in 
 
 force. 
 
 Spirits distilled from whatever rftaterials. 
 
 Do 
 
 Spirits distilled from whatever materials, 
 
 except grapes., 
 
 Spirits distilled from whatever materials, 
 except grapes, to Apr. 1, 1865, and from 
 whatever materials, except apples, 
 grapes, and peaches, after Apr. 1, 1865. . 
 
 Spirits distUled from grapes , 
 
 Do 
 
 Spirits distilled from apples or peaches. . . 
 Spirits distilled from apples, grapes, or 
 
 peaches 
 
 Spirits distilled from apples or peaches. . . 
 
 Spirits distilled from grapes 
 
 Spirits distilled from whatever materials . 
 
 Do 
 
 Do 
 
 Do 
 
 Spirits for beverage purposes 
 
 Do 
 
 Spirits for nonbeverage purposes 
 
 Do 
 
 $0.20 
 .60 
 
 1.50 
 
 2.00 
 .25 
 .50 
 
 1.60 
 
 2.00 
 
 2.00 
 
 1.00 
 
 .50 
 
 .70 
 
 .90 
 
 1.10 
 
 3.20 
 
 6.40 
 
 2.20 
 
 Julv 1,1862 
 Mar. 7,1864 
 
 Juno 30,1864 
 
 Deo. 22,1864 
 June 30,1864 
 Mar. 3, 1865 
 do 
 
 July 13,1866 
 Mar. 2, 1867 
 
 do 
 
 July 20,1868 
 June 6, 1872 
 
 3,1875 
 28 1894 
 
 3,1917 
 24, 1919 
 
 3, 1917 
 
 Mar. 
 Aug. 
 Oct. 
 Feb. 
 Oct. 
 Feb. 24,1919 
 
 Mar. 7,1864 
 June 30,186* 
 
 Deo. 22,1864 
 
 July 20,1868 
 Mar. 3,1865 
 July 13,1866 
 ^o 
 
 Mai. 2,1867 
 July 20,1868 
 do 
 
 June 6, 1872 
 
 3,1875 
 
 28, 1834 
 
 3,1917 
 
 24, 1919 
 
 Mar. 
 Aug. 
 Oct. 
 Feb. 
 
 Months. 
 18 
 4 
 
 4S 
 9 
 17 
 
 17 
 
 6 
 17 
 17 
 48 
 31 
 234 
 276 
 72 
 
 I 
 
 I 
 
 The act of July 1, 1862, went into operation September 
 1, 1862. 
 
 The act of June 30, 1864, provided that a tax of $1.50 per 
 gallon should be levied and collected on all distilled spirits, 
 except brandy distilled from grapes, from July 1, 1864, 
 to February 1, 1865; on and after February 1, 1865, the 
 tax should be $2 per gallon. 
 
 Tlie act of December 22, 1864, provided that the tax of 
 $2 per gallon should take effect January 1, 1865, instead of 
 February 1, 1865. 
 
 So far as the other acts referred to relate to the tax on 
 spirits, they went into operation immediately on their 
 passage, except the following: Act of March 3, 1865, took 
 effect April 1, 1865; act of July 13, 1866, took effect Sep- 
 tember 1, 1866 ; act of June 6, 1872, took, effect August 1, 
 1872. 
 
 The act of July 20, 1868, made the tax 50 cents per gallon, 
 to be paid by stamps ; but there was imposed on the distiller 
 by that act an additional tax on his product of $4 per barrel 
 of 40 proof gallons, which made the tax really 10 cents 
 per gallon additional, or 60 cents per gallon. There was 
 also a tax on the grain-mashing capacity of the distillery, 
 and a further requirement of reimbursement by the dis- 
 tiller of the sutns paid by the Grovernment for gangers' fees 
 and storekeepers' salaries, altogether amounting to about 
 7 cents per gallon of the aggregate product of spirits, thus 
 making the whole tax charged upon the distiller about 67 
 cents per gallon. 
 
 By the act of June 6, 1872, taking effect August 1, 1872, 
 the barrel and grain capacity taxes and the reimbursement 
 provision were repealed, and the tax was made 70 cents per ■ 
 gallon, being only an actual addition of about 3 cents per 
 gallon. By the act of March 3, 1875, increa.se was made to 
 90 cents per gallon. August 28, 1894,. the tax was again 
 Increased to $1.10 per gallon. 
 
 Stamps first required in payment of tax on spirits bv the 
 act of July 20, 1868 (15 Stat., 125), and went into use 
 Noven^/g^ggeg-y li/fl^f^m<^ September 17, 1868.) 
 
DISTTT.TiF,D SPIRITS. 199 
 
 The act of Congress approved July 20, 1868, imposing a 
 tax on distilled spirits, is not unconstitutional. The tax 
 imposed upon the distiller is in the nature of an excise, 
 and the only limitation upon the power of Congress in 
 the imposition of taxes of this character is that they shall 
 be " uniform throughout .the United States." , (United 
 States r. Singer, 15 Wall., Ill ; United States v. Van Bus- ■ 
 kirk, 15 Wall, 123.) 
 
 The tax becomes due as soon as the spirits are produced. 
 (United States Fidelity & Guaranty Co. v. United States, 
 220 Fed., 592 ; T. D. 2103.) 
 
 Exemptions from tax. — ^Alcohol withdrawn for scientific 
 purposes. (Sec. 3297, p. 257.) 
 
 Spirits used in the fortification of sweet wine. (P. 326.) 
 
 Spirits used in the manufacture of sugar from sorghum. 
 (P. 206.) , 
 
 Spirits purchased for the United States for Government 
 use. (Sec. 3461, p. 606.) 
 
 Spirits denatured in accordance with the denatured alco- 
 hol act of June 7, 1906, amended. (P. 298.) 
 
 Theory of Government supervision over distilleries. 
 (United States v. Parker, Mason & Co., 21 Int. Rev. 
 Eec, 245.) 
 
 Persons having interest in distillery liable. (United 
 States V. Howard, U Int. Kev. Rec, 119.) 
 
 Lien can not be divested by transfer of title. (Milan 
 DistilUng Co. v. Tillson, 26 Int. Rev. Rec, 5.) 
 
 SoalMge. — The soakage of spirits into distiller's packages, 
 not being included in the basis of computation, is not a part 
 of the quantity upon which the tax is levied, and, conse- 
 quently, when extracted from the empty barrels, it is spirits 
 on which the lawful tax has not been paid, and is subject 
 to taxation. (Corning & Co. v. Hunter, 86 Fed., 913; 
 T. D. 19191.) 
 
 Recovery of spirits from empty packages in bottling 
 warehouses. (CIr. No. 662; T. D. 818.) 
 
 Reclaiming spirits from empty spirit packages. (T. D. 
 1608 ; T. D. 1627 ; T. D. 2565.) 
 
 Extracting alcohol from empty packages. (Philadelphia 
 Extracting Co. •;;. McCoach, T. D. 1823; Western Extract- 
 ing Co. V. Smietanka, 234 Fed., 229; T. D. 2331.) 
 
 Attorney General declines to express an opinion in regard 
 to certain orders of the Commissioner relative to extracting 
 alcohol from empty packages. (28 Opin. Atty. Gen., 596.) 
 
 A corporation may carry on the bu^ness of distilling in 
 its corporate capacity. (15 Op. Atty. Gen., 280 ; 23 Int. Rev. 
 Rec, 141.) 
 
 Stockholders in a distilling company individually liable 
 for taxes due from the corporation. (15 Op. Atty. Getu, 
 559; 23 Int. Rev. Rec, 141.) 
 
 Stockholders in distilling corporation. (Wood vr United 
 States, 204 Fed., 55 ; T. D. 1836.) 
 
 Municipal corporations engaged in distilling liable to tax. 
 (Salt Lake City v. Hollister, 118 U. S., 256; 32 Int. Rev. 
 Rec, 158.) 
 
 Payment of tax on forfeited spirits by the marshal out of 
 proceeds of sale (sec. 3458) discharges liability of sureties 
 on distillers' warehousing bond for tax. (United States v. 
 Ulrici, 111 U. S., 38 ; 30 Int. Rev. Rec, 111.) 
 
 Primarily the distiller is liable for the taxes due on the 
 spirits distilled and, in case of default, his sureties are also 
 Jointly liable for the same. The tax ihust be paid in the 
 name of the distiller, and the stamp, which is in the nature 
 of a receipt, can only be issued to him. (Harkins v. Wil- 
 liard, 146 Fed., 703; T. D. 1030.) 
 
 The laws imposing taxes on distilled spirits are coexten- 
 sive with jurlsdI<S^'f^¥tl^<?W?#ifi§0/?#ec. 3448, p. 590.) 
 
200 DISTILLED SPIRITS. 
 
 Domestic whisky returned from abroad. (26 Int. Rev. 
 Rec, 50; 27 Id., 333.) 
 
 Domestic spirits exported from the United States subject 
 to rate of duty equal' to internal-revenue tax upon re- 
 importation of same into this country. (See sec. 2500.) 
 
 Where there is presumptive evidence that it was the 
 intention of the parties to return the spirits to TTnited 
 ■ States, entry under section 2500 not allowed. (35 Int. Rev. 
 Rec. 358.) 
 
 [For opinion of Attorney General as to what constitutes 
 an exportation within contemplation of law see references 
 under sec. 3330.] , 
 
 Domestic spirits returned to the United States and not 
 admitted under section 2500 as reimported spirits subject to 
 internal-revenue tax on full quantity contained in packages 
 at time of withdrawal from distillery warehouse. 
 
 The location of a distillery in Indian Territory on land 
 where title is extinct is in contravention of law. (22 Op. 
 Atty. Gen., 232; T. D. 20162.) 
 
 Bay rum from Porto Rico. (T. D. 404; Newhall v. 
 .Jordan, 149 Fed., 586; Anderson r. Newhall, 161 Fed., 906; 
 Roche V. Jordan, 175 Fed., 234 ; Jordan v. Roche, 228 U. S., 
 436; T. D. 1849.) 
 
 AN ACT To provide further for the national security and defense 
 by encouraging the production, conserving the supply, and con- 
 trolling the distribution of food products and fuel. Act of 
 August 10, 1917 (40 Stat, 276). 
 
 dis?mation''"%°i Sec. 15. That from and after thirty days from the date 
 spirits. of the approval of this act no foods, fruits, food ma- 
 
 terials, or feeds shall be used in the production of distilled 
 spirits for beverage purposes: Provided, That, under 
 such rules, regulations, and bonds as the President may 
 prescribe, such materials may be used in the production 
 of distilled spirits exclusively for other than beverage 
 purposes, or for the fortification of pure sweet "Vines as 
 defined by the act entitled " An act to increase the reve- 
 nue, and for other purposes," approved September eighth, 
 <ji8tii'ied"*"'^rit' "'^'^^*®®^ hundred and sixteen. Nor shall there be im- 
 prohibited. ported into the United States any distilled spirits. 
 
 ^^Tienever the President shall find that limitation, regu- 
 lation, or prohibition of the use of foods, fruits, food 
 materials, or feeds in the production of malt or vinous 
 liquors for beverage' purposes, or that reduction of the 
 alcoholic content of any such malt or vinous liquor' is 
 essential in order to assure an adequate and continuous 
 supply of food, or that the national security and defense 
 will be subserved thereby, he is authorized, from time to 
 time, to prescribe and give public notice of the extent of 
 the limitation, regulation, prohibition, or reduction so 
 necessitated. Whenever such notice shall have been 
 given and shall remain unrevoked no person shall, after a 
 reasonable time prescribed in such notice, use any foods, 
 fruits, food materials, or feeds in the production of malt 
 or vinous liquors, or import any such liquors except under 
 license issued by the President and in compliance with 
 rules and regulations determined by him governing the 
 production^(M^9fi(E^l(lfe6ftS@f ®ich liquors and the alco- 
 
DISTILLED SPIRITS. 201 
 
 holic content thereof. Any person who wilfully violates 
 the provisions of this section, or Avho shall use any foods, 
 fruits, food materials, or feeds in the production of malt 
 or vinous liquors, or who shall import any such liquors, 
 without first obtaining a license so to do when a license is 
 required under this section, or who shall violate any rule 
 or regulation made under this section, shall be punished 
 by a fine not exceeding $5,000 or by imprisonment for not 
 more than two years, or both: Provided further,^ That 
 nothing in this section shall be construed to authorize the 
 licensing of the manufacture of vinous or malt liquors 
 in any State, Territory, or the District of Columbia, or 
 any civil subdivision thereof, where the manufacture of 
 such vinous or malt liquor is prohibited. 
 
 A Pp.oclamation. 
 
 Whereas, under and by virtue of an act of Oongresa 
 entitled " An act to provide further for the national se- 
 curity and defense by encouraging the production, con- 
 serving the supply, and controlling the distribution of food 
 products and fuel," approved by the President on August 
 10, 1917, it is provided in section 15, among other things, 
 as follows : 
 
 " Whenever the President shall find that limitation, regu- 
 lation, or prohibition of the use of foods, fruits, food ma- 
 terials, or feeds in the production of malt or vinous liquors 
 for beverage purposes, or that reduction of the alcoholic 
 content of any such malt or vinous liquor, is essential, 
 in order to assure an adequate and continuous supply of 
 food, or that the national security and defense will be sub- 
 served thereby, he is authorized, from time to time, to 
 prescribe and give public notice of the extent of the limita- 
 tion, regulation, prohibition, or reduction so necessitated. 
 Whenever such notice shall have been given and shall re- 
 main unrevoked, no person shall, after a reasonable time 
 prescribed in such notice, use any foods, fruits, food ma- 
 terials, or feeds in the production of malt or vinous liquors, 
 or import any such liquors except under license issued by 
 the President and in compliance with rules and regula- 
 tions determined by him governing the production and 
 importation of such liquors and the alcoholic content 
 thereof." 
 
 Now, therefore, I, Woodrow Wilson, President of tlie 
 United States of America, by virtue of the powers con- 
 ferred on me by said act of Congress, do hereby find and 
 ^determine that it is essential, in order to assure an ade- 
 quate and continuous supply of food, in order to subserve 
 the national security and defense, and because of the in- 
 creasing requirements of war industries for the fuel pro- 
 ductive capacity of the country, the strain upon transpor- 
 tation to serve such industries, and the shortage of labor 
 caused by the necessity of increasing the armed forces of 
 the United States, that the use of sugar, glucose, corn, 
 rice or any other foods, fruits, food materials and feeds 
 In the production of malt liquors, including near beer, 
 for beverage purposes be prohibited. And by this procla- 
 mation I prescribe and give public notice that on and 
 after October 1, 1918, no person shall use any sugar, 
 glucose, corn, rice or any other foods, fruits, food ma- 
 terials or feeds, except hops and malt now already made, 
 in the production of malt liquors, including near beer, 
 
 rnta^^"aToh^or»#5M'€#«mb4"l"T918! 
 -no nerson shall use any sugar, glucose, corn, nee or any 
 
202 DISTILLED SPIRITS. 
 
 Other foods, fruits, food materials or feeds, including malt, 
 in the production of malt liquors, including near beer, for 
 beverage purposes, whether or not such malt liquors con- 
 tain alcohol. 
 
 In witness whereof I have hereunto set my hand and 
 caused the seal of the United States to be affixed. 
 
 Done in the District of Columbia this 16th day of 
 September, in the year of our Lord one thousand nine 
 hundred and eighteen, and of the Indeijendence of the 
 United States of America the one hundred and forty-third. 
 
 WooDKOw Wilson. 
 By the President : 
 Robert Lansing, 
 
 Secretary of State. 
 
 Rules and Regulations Govebning the Pkoduction or 
 Malt Liquors and the Alcoholic Context THEEEor. 
 
 Promulgated by the President under the authority of sec- 
 tion 15 of the act of Congress approved August 10, 1917, 
 entitled "An act to provide further for the national 
 security and defense by encouraging the production, con- 
 serving the supply, and controlling the distribution of food 
 products and fuel, and in accordance with proclamations, 
 concerning malt liquor, issued December 8, 1917, and Sep- 
 tember 16, 1918. 
 
 Rule 1. During the period from October 1, 1918, to Decem- 
 ber 1, 1918, only malt and hops shall be used in the produc- 
 tion of any malt liquor, provided that any dextrinous or 
 otlier sirups which have been specially prepared for the 
 manufacture of near beer and which are in the licensee's 
 possession or shipped to him prior to October 1, 1918, may 
 be used in the manufacture of such near beer. 
 
 Rule 2. The limitations on quantity of malt and hops used 
 in the manufacture of beer or near beer contained in the 
 proclamation of December 8, 1917, shall not apply during 
 the period from October 1, 1918, to December 1, 1918, but 
 nothing in this rule shall be construed to modify in any 
 way the limitation on alcoholic content of malt liquor pre- 
 scribed by said proclamation of December 8, 1917. 
 
 Rule 3. No person shall import any malt liquor for bever- 
 age purposes on and after December 1, 1918. 
 
 Rule 4. Tlie prohibitions contained in the proclamation of 
 September 16, 1918, shall not apply to material actually in 
 process of manufacture prior to the dates named in said 
 proclamation, but the fact that material is on hand in the 
 brewery or factory shall not authorize any exception to be 
 made other than that referred to in rule 1. 
 
 The foregoing regulations are approved on this 30th day 
 of September, 1918, superseding all prior regulations incon- 
 sistent herewith. ' 
 
 AVooDEOw "Wilson. 
 
 Extracts may be made from nonbeverage alcohol. (T. 
 D. 2567.) 
 
 Instructions relative to the sale and use of distilled spirits 
 for other than beverage purposes under the food control act 
 of August 10, 1917. (T. Ds. 2520, 2559, 2576, 2788, 2854.) 
 
 The importation of distilled spirits prohibited after Sep- 
 tember 9, 1917. (T. D. 37315.) 
 
 Dilute saccharine liquid derived from sawdust, etc., is 
 prohibited material. (T. D. 2526.) 
 
 Wines containing over 24 per cent of alcohol by volume 
 classed as distilled spirits. (T. D. 2748.) 
 
 Use and sale of nonbeverage and homeopathic attenua- 
 tions iM-<;^,yiP^»;it)i^;„/J5j^(g699.) 
 
 RegmMyng^s^J'o''uSe "or'tootl materials in production of 
 distilled spirits. (T. D. 2642.1 
 
DISTILLED SPIRITS. 203 
 
 Instructions as to procedure In securing permits and giv- 
 ing bonds for sale and use of distilled spirits and wines for 
 .'/ther than beverage purposes, including wines for sacra- 
 mental purposes. (T. Ds. 2940, 2946.) 
 
 This section is not a customs law, but a prohibition law 
 enacted under police power of Congress, and court can not 
 impose as an additional punishment the forfeiture of the 
 vehicle used, under another statute. (United States v. 
 One Ford Automobile and Fourteen Packages of Distilled 
 Spirits, 259 Fed., 894.) 
 
 Sec. 16. Tluat the President is authorized and directed {^^^"oT^istiiied 
 to commandeer any or all distilled spii'its in bond or in spiritB. 
 stock at the date of the 'approval of this act for redis- 
 tillation, in so far as such redistillation may be necessary 
 to meet the requirements of the Government in the manu- 
 facture of munitions and other military and hospital 
 supplies, or in so far as such redistillation would dis- 
 pense with the necessity of utilizing products and ma- 
 terials suitable for foods and feeds in the future manu- 
 facture of- distilled spirits for the purposes herein 
 enumerated. The President shall determine and pay- a 
 just compensation for - the distilled spirits so com- 
 mandeered; and if the compensation so determined be 
 not satisfactory to the person entitled -to receive the same 
 such person shall be paid seventy-fite per centum of the 
 amount so determined by the President and shall be en- 
 titled to sue the United States to recover such further sum 
 as, added to said seventy-five per centiim, will make up 
 such amount as will be just compensation for such spirits, 
 in the manner provided by section twenty-four, paragraph 
 twenty, and section one hundred and forty-five of the 
 iTudicial Code. 
 
 Executive Ordee. 
 
 Acting under the authority of section 2 of the act of 
 Congress approved August 10, 1917, entitled " An act to pro- 
 vide further for the national security and defense by encour- 
 aging the production, conserving the supply, and controlling 
 the distributioh of food products and fuel," which section 
 reads in part as follows : " That in carrying out the purposes 
 of this act the President is authorized * * * to utilize 
 any department or agency of the Government and to co- 
 ordinate their activities so as to avoid any preventable loss- 
 or duplication of effort or funds" ; because the ofBce of the 
 Commissioner of Internal Revenue in the Treasury De- 
 partment is now regulating the production of distilled 
 spirits through the United States and is in control of the 
 machinery necessary to enforce effectively the provisions of 
 sections 15 and 16 of the aforesaid act of August 10, 1917, 
 relating to distilled spirits. 
 
 Now, in order more effectively to enforce the provisions 
 of said act and to avoid preventable duplication of effort 
 and funds, I hereby direct that the Treasury Department 
 shall henceforth supervise, direct, and carry into effect 
 the provisions of sections 15 and 16 of said act of August 
 10, 1917, and exercise the powers and authority therein 
 given to the President, subject to such instructions and 
 regulations as may from time to time be issued by the Presi- 
 dent. For this purpose' the Secretary of the Treasury is 
 hereby authorized to assign such duties to the Commis- 
 sioner of Interna£);H#ffiSl^q^vtft«(;j»/i§g9^revenue ofTicers 
 • of the United Stated and tils' Division of Custom-., and to 
 
204 DISTILLED SPIRITS. 
 
 employ such acltlitional assistants as he may deem necessary 
 therefor. 
 
 The Executive order dated August 10, 1917, providing for 
 the organization of the United States Food Administration, 
 so far as it is inconsistent herewith, is hereby modified. 
 
 WooDEOvr Wilson. 
 
 Washington, D. C, Z September, 1911. 
 
 Pact that manufacture of any beverage is prohibited will 
 not relieve producer from liability to tax. (T. D. 2841.) 
 
 era^el"' ^°Ii\T-, ^^c. 1. \_Act of Novembcr M, 1918 {Jfi Stat. lOlfi).— 
 June 30, 1919, Extract.^ That after June thirtieth, nineteen hundred 
 prohibited. ^^^ nineteen, until the conclusion of the present war and 
 
 thereafter until the termination of demobilization, the 
 date of which shall be determined and proclaimed by 
 the President of the United States, for the purpose of 
 conserving the man power of the Nation, and to increase 
 efficiency in the production of arms, munitions, ships, 
 food, and clothing for the Army and Navy, it shall be 
 unlawful to sell for beverage purposes any distilled 
 spirits, and during said time no distilled spirits held in 
 bond shall be removed therefrofn for beverage purposes 
 ctc'for^'making cxcept for cxport. After May first, nineteen hundred 
 beverages ^after ^j^^j nineteen, Until the conclusion of the present war and 
 prohibited. ' thereafter until the termination of demobilization, the 
 date of which shall be determined and proclaimed by 
 the President of the United States, no grains, cereals, 
 fruit or other food product shall be used in the manu- 
 facture or production of beer, wine, or other intoxicating 
 malt or vinous liquor for beverage purposes. After June 
 thirtieth, nineteen hundred and nineteen, until the con- 
 clusion of the present war and thereafter until the 
 termination of demobilization, the date of which shall 
 be determined and proclaimed by the President of the 
 United States, no beer, wine, or other intoxicating malt 
 or vinous liquor shall be sold for beverage purposes 
 except for export. The Commissioner- of Internal Reve- 
 nue is hereby authorized and directed to prescribe rules 
 and regulations, subject to the approval of the Secre- 
 tary of the Treasury, in regard to the manufacture and 
 sale of distilled spirits and removal of distilled spirits 
 held in bond after June thirtieth, nineteen hundred and 
 nineteen, until this Act shall cease to operate, for other 
 than beverage purposes; also in regard to the manufac- 
 ture, sale, and distribution of wine .for sacramental, me- 
 du?Sg° wa"r! ^'^^' dicinal, or other than beverage nges. After the approval 
 of this Act no distilled, malt, vinous, or other intoxi- 
 cating liquors shall be imported into the United States 
 during the continuance of the present war and period 
 of demobilization : Provided., That this provision against 
 importation shall not apply to shipments en route to the 
 United States at the time of the passage of this Act. 
 I Any person who violates any of the foregoing pro- 
 visions shall be punished by imprisonment not exceeding 
 one year, ^'gg^eg^ Mr<§se^ing $1,000, or by both 
 
DISTILLED SPIRITS. 205 
 
 such imprisonment and fine: Proinded, That the Presi- 
 dent of the United States be, and hereby is, authorized 
 and empowered, at any time after the 'passage of this P"i>ibitory 
 Act, to establish zones of such size as he may deem ad- ^a" mine,; etJ.* 
 visable about coal mines, munition factories, shipbuilding 
 plants, and such other plants for war material as may 
 seem to him to require such action whenever in his opin- 
 ion the creation of such zones is necessary to, or advisa- 
 ble in, the proper prosecution of the war, and that he is 
 hereby authorized and empowered to prohibit the sale, 
 manufacture, or distribution of intoxicating liquors in 
 such zones, and that any violation of the President's 
 regulations in this regard shall be punished by imprison- 
 men for not more than one year, or by fine of not more 
 than $1,000, or by both such fine and imprisonment: 
 Provided further, That nothing in this Act shall be con- 
 strued to interfere with the power conferred upon the 
 President by section fifteen of the food-control Act, 
 approved August tenth, nineteen hundred and seven- 
 teen (Public Numbered Forty, Sixty-fifth Congress). 
 
 Regulations relative to export of distillecl spirits and 
 wines, and use of wines or liquors for medicinal, sacra- 
 mental, or nonbeverage purposes. (T. Ds. 2881, 2959.) 
 
 Instructions as to procedure in securing permits and giv- 
 ing bonds for sale and use of distilled spirits and wines for 
 other than beverage purposes, including wines for sacra- > 
 mental purposes. (T. Ds. 2940, 2946.) 
 
 The act of November 21, 1918, is not in violation of the 
 fifth amendment to the Constitution, is not void by reason 
 of passing of the war emergency, was not repealed by the 
 adoption of the eighteenth amendment to the Constitution, 
 and did' not expire by limitation in that the war is at an 
 end, the President not having determined and proclaimed 
 the date of termination of demobilization. (Hamilton v. 
 Kentucky Distilleries & Warehouse Co. ; Dryfoos v. Ed- 
 wards. Decided by United States Supreme Court Decem- 
 ber 15, 1919, but not yet officially reported.) 
 
 Indictment charging violation of this section by manu- 
 facture of malt liquor having alcoholic content of one-half 
 of one per cent or more, but not alleging same to be in- 
 toxicating, is subject to demurrer. (United States v. 
 Standard" Brewery, 260 Fed., 486.) 
 
 Congress has constitutional power to prohibit manufac- 
 ture and sale of intoxicating liquors during war. (United 
 States V. Baumgartner, 259 Fed., 722.) 
 
 This act is constitutional. (United States v. Ranier 
 Brewing Co., 2.59 Fed., 3-59.) 
 
 This section, whether construed to prohibit manufacture 
 of any beer or wine, or only such n.s is intoxicating, is con- 
 stitutional. (Jacob Hoffman Brewing Co. v. McElligott, 
 259 Fed., 321.) 
 
 This act does not prohibit manufacture or sale of beer 
 which is not intoxicating. (United States v. Petts, 260 
 Fed., 663.) 
 
 Ruling on demurrer to information charging violation of 
 this act by. manufacturer of beer for beverage purposes, 
 where purpose was to obtain construction of statute and 
 ruling as to whether particular beverage was within this 
 prohibition. (United States v. Bergner & Engel Brewing 
 Co., 260 Fed., 764.) 
 
 Vehicle or animEiigtiizedtt^ IVIJCIC(ymfR®o possession of 
 third person, who uses it in removal of goods or commodi- 
 
206 DIS-TILLED SPIRITS. 
 
 ties to defraud United States of tax imposed thereon, is 
 subject to forfeiture tliougli owner Jiud no knowledge of 
 iBegal use. (Logan r. United States, 260 Fed., 746.) 
 
 Act lield constitutional, as within war powers of Congness 
 in dealing with conditions growing out of termination of 
 hostilities and demobilization of army. (Scatina -c. Caffey, 
 260 Fed., 756.) 
 
 Information charging violation "of this act need not aver 
 that beer alleged to have been manufactured or sold was 
 intoxicating. (United States i\ Pittsburgh Brewing Oo^ 
 260 Fed., 762.) 
 
 This act does not violate tenth amendment to Federal 
 Constitution. (United States v. Minery, 259 Fed., 707.) 
 
 Eighteenth amendment to the Federal 'Constitution does 
 not invalidate act of November 21, 1918, upon ground that 
 prohibition legislation is precluded iintil 1920. (Id.) 
 
 This act is applicable to sale on July 8, 1919, since no 
 treaty had then been signed with Austria and the array 
 had not been entirely demobilized. (Id.) 
 
 This act prevents only the manufacture and sale of beer, 
 wine, etc., which are in fact intoxicating. (Jacob Hoffman 
 Brewing Co. v. BIcElligott, 259 Fed., 525 ; United States ■;•. 
 Baumgartner, 259 Fed.,- 722.) 
 
 Importation of Sec. 601. [Act of February 2^, 1919 {Jfl Stat., 1057).] 
 spirits. rpj^^^^ ^^ distilled spirits produced after October 3, 191T, 
 
 shall be imported into tlie United States from any 
 foreign country, or from the Virgin Islands (unless pro- 
 duced from products the growth of such islands, and not 
 then into any State Or Territory or District of the United 
 States in which the manufacture or sale of intoxicating 
 liquor is prohibited), or from Porto Rico, or the Philip- 
 pine Islands. Under such rules, regulations, and ionds 
 as the Secretary may prescribe, the provisions of this sec- 
 tion shall not apply to distilled spirits imported for other 
 than (1) beverage purposes or (2) use in the manu- 
 facture or production of any article used or intended 
 for use as a beverage. 
 v,-iihdrawai [Act of 3/arch, 3, 1891 {S6 Stat., lOSO) .} * * * That 
 fplrits"* us?d il any manufacturer of sugar from sorghum may remove 
 I'r s™^™*^from ^o^ distillery warehouses to factories used solely for 
 sorghum. the manufacture of such sugar from sorghum distilled 
 
 spirits in bond free of tax, to be used solely in such 
 manufacture of sugar from sorghum; that all distilled 
 spirits removed as herein authorized shall be of an alco- 
 holic strength of not less than one hundred and sixty 
 per centum proof, and may be removed, stored, and used 
 in the manufacture of sugar from sorghum, and when so 
 used may be recovered by redistillation in the sugar 
 factory of such sugar manufacturer under such bonds, 
 rules, and regulations for the protection of the revenue 
 and the accomplishment of the purposes herein expressed 
 as the Commissioner of Internal Revenue with the ap- 
 proval of the Secretaiy of the Treasury may prescribe. 
 Penalty. Any person who removes or uses distilled spirits in 
 
 violation of this provision, as [or] the regulations issued 
 pursuant thereof, shall, on conviction thereof, be fined 
 
 B, and the spirits and the 
 
DISTILLED SPIRITS. 207 
 
 premises on which such sph^its are used shall bo forfeited 
 to the United States. * * * 
 
 Sec. 3252. Every person who adds or causes to be Adding sub- 
 added any ingredient or substance to any distilled spirits Stious*" p"oo'? 
 before the tax is paid thereon for the purpose of creating penalty. 
 a fictitious proof, shall be fined not less than one hun- 
 dred dollars nor more than one thousand dollars for each 
 cask or package so adulterated, and imprisoned not less 
 than three months nor more than two years; and every 
 such cask or package, with its contents, shall be forfeited 
 to the United States. 
 
 Sec. 3263. The tax upon any distilled spirits removed Tax on spirits 
 from the place where they were distilled and not de- "eposrt'^in™wa"'r"e-' 
 posited in bonded warehouse as required by law, shall, ^^^^^ • ^^sess- 
 at any time, when knowledge of such fact is obtained by "''" ' 
 the Commssioner of Internal Eevenue, be assessed by him 
 upon the distiller of the same, and returned to the col- 
 lector, who shall immediately demand payment of such 
 tax, and, upon the neglect or refusal of payment by the 
 distiller, shall proceed to collect the same by distraint. 
 But this provision shall not exclude any other remedy 
 or proceeding provided by law. 
 
 This section also applies to fruit distillers wbo seU spirits 
 without paymeat of tax. 
 
 See also section 8, act of Blarch 3, 1877, providing simi- 
 lar remedy in certain cases as to brandy made from apples, 
 peaches, or grapes, page 253. 
 
 Change in regulations No. 7 relative to method of test- 
 ing fusel oil before removal from distilleries. (T. D. 2336.) 
 
 Sec. 3254. AH products of distillation, by Tyhatever , Products o f 
 name laiown, which contain distilled spirits or alcohol, faining''°spirto!'" 
 on which the tax imposed by law has not been paid, shall 
 be considered and taxed as distilled spirits. , ^ 
 
 Sec. 3255. fAmefided hy act of June S, 1896 {29 Stat., Brandy made 
 196), act of March 2, 1911 {S6 Stat., 1014), sec. m, «c^ p "a^hesf "J'rlpes: 
 of September 8, 1916 {39 Stat., 788) , and sec. 625, act of l^^^ • ^^^"-p- 
 Fehruary ^4, 1919 {Ifi Stat., 1057) .] The Commissioner of 
 Internal Eevenue, with the approval of the Secretary of 
 the Treasury, may exempt distillers of brandy made ex- 
 clusively from apples, peaches, grapes, pears, pineapples, 
 oranges, apricots, berries, plums, pawpaws, persimmons, 
 prunes, figs, or cherries from any provision of this title 
 relating to the manufacture of spirits, except as to the tax 
 thereon, when in his judgment it may seem expedient to 
 do so : Provided, That where, in the manufacture of wine, 
 artificial sweetening has been used the wine or the fruit 
 pomace residuum may be used in the distillation of 
 brandy, and such use shall not prevent the Commissioner 
 of Internal Eevenue, with the approval of the Secretary 
 of the Treasury, from exempting such distiller from any 
 provision of this title relating to the manufacture of 
 spirits, except as to the tax thereon, when in his judgment 
 it may seem expedient to do so : And provided fvnrther, 
 That the distillers "J^fe^a^g^^n may add to 
 not less than five hundred gallons (or ten barrels) of 
 
208 DISTILLED SPIRITS. 
 
 grape cheese not more than five hundred gallons of a 
 sugar solution made from cane, beet, starch, or corn sugar, 
 95 per centum pure, such solution to have a saccharine 
 strength of not to exceed 10 per centum, and may ferment 
 the resultant mixture on a winery or distillery premises, 
 and such fermented product shall be regarded as distill- 
 ing material. 
 
 Cir. No. 592. (T. D. 288.) 
 
 Act of March 3, 1877, relating to the production of -grape 
 brandy (special bonded warehouses), page 251. 
 
 Act of October 18, 1888, relating to production of brandy 
 made from apples or peaches, page 254. 
 
 Distillers of brandy made exclusively from apples, 
 peaches, grapes, pears, pineapples, oranges, apricots, berries, 
 prunes, figs, or cherries are not required to have a sign, 
 furnish a plan of the distillery, or provfile a warehouse. 
 They are exempted from certain requirements as to the fer- 
 menting period and fermenting tubs and other general pro- 
 visions of the law as set forth in the regulations on the 
 subject. (See Regulations No. 7, revised July 10, 1914; T. 
 D. 2373.) 
 
 Internal-revenue tax on all fruit brandy is due on the 
 lOfh of the month following the month of production. 
 
 Assessing tax on fruit brandy. (Cir. No. 657; T. D. 782; 
 T. D. 835.) 
 
 Collection of tax on fruit brandy. (Cir. No. 670; T. D. 
 900.) 
 
 Adding coloring matter to brandy for export. (T. D. 
 2342.) _/ 
 
 Consfruction of fruit brandy distilleries. (T. D. 2491.) 
 
 ,^ Dirtmers hav- gEC. 6. {Act of March 1, 1879 (20 Stat, 327) .] * * * 
 itproduciiigr ''ca- The Commissioner of Internal Revenue, with the ap- 
 fo"s%roof%i?its proval of the Secretary of the Treasury, may exempt dis- 
 or ^less ; cxemp- tiUcrs whosc distiUerics have a daily spirit-producing 
 capacity of thirty gallons of proof spirits, or less, from 
 such of the provisions of existing law in regard to grain 
 distilleries which require the process of distillation to be 
 carried on through continuous closed vessels and pipes, 
 or Avhich require the cisterns to be connected with the 
 outlet of the worm or condenser by suitable pipes or other 
 apparatus or which require certain clear spaces about the 
 cisterns and other vessels of the distillery, or which re- 
 qilire the distillers to have or furnish a plan of the dis- 
 tillery, as he may deem proper. 
 
 Under the authority given by this section distillers whose 
 distilleries have a daily spirit-producing capacity of 30 
 gallons of proof spirits or less, as estimated and determined 
 by a survey made according to law, are exempted — 
 
 (1) From so much of the provisions of section 3263 as 
 require a plan of the distillery to be had or furnished by 
 the distiller ; 
 
 (2) From so much of the provisions of sections 3267 and 
 3269 as require that the open or clear spaces above, below, 
 or around the receiving cisterns, wood still, doubler, and 
 worm tanks shall be of any greater extent or dimensions 
 than is necessary to afford a clear, distinct, and uninter- 
 rupted view around, above, and beneath each of said, ves- 
 sels or utensils. 
 
 Evading tax; Sec. 3256. Whenever any person evades, or attempts to 
 P"™"^- evade, the^'SjfB^lPiillWffie^^^tti any distilled spirits, in 
 
DISTILLED SPIRITS. 
 
 209 
 
 Distiller d ( 
 
 Forfeiture. 
 
 Penalty. 
 
 any manner whatever, he shall forfeit and pay double the 
 amount of the tax so evaded or attempted to be evaded. 
 See section 3296, page 256. 
 
 The penalty of double the amount of the tax imposeil by 
 section 3256 is not assessable, and should not be imposed 
 and collected by a collector, but should be recovered by in- 
 dictment or other form of action. (T. D. 858.) 
 Equalizing in warehouse. , (T. D. 1681.) 
 Equalizing losses of bonded spirits. (T. D. 2008.) 
 
 Sec. 3257. Whenever any person engaged in carrying 
 on the business of a distiller defrauds or attempts to de- temptiTg Z de- 
 fraud the United States of the tax on the spirits distilled ^if^% S texm 
 by him, or of any part thereof, he shall forfeit the dis- spirits, 
 tillery and distilling apparatus used by him, and all dis- 
 tilled spirits and all raw materials for the production of 
 distilled spirits found in the distillery and on the dis- 
 tillery premises, and shall be fined not less than five hun- 
 dred dollars nor more than five thousand dollars, and be 
 imprisoned not less than six months nor more than three 
 years. 
 
 See section 3281 and citations thereunder. See section 
 3230, as to nolle prosequi of prosecutions under section 
 3257. 
 
 Taxability of persons selling warehouse receipts. (T. T>. 
 2784. ) 
 
 It is sufficient in the indictment to allege the offense in 
 the language of the statute where this so defined the act or 
 acts constituting the offense as to give to the defendant in- 
 formation of the nature and cause of the accusation. 
 (United States v. Staton, 25 Int. Rev. Rec, 10.) 
 
 Information under sections 3257, 3281, 3305, 3453, and 
 3456, Revised Statutes. No proof to overcome the denials 
 in the answer. (United States v. One Distillery, Fruitvale 
 Wine & Fruit Co., 174 U. S., 149.) 
 
 It was not necessary to aver In the information that the 
 distilled spirits found on the claimant's distillery premises 
 and seized were distilled by Mm or were the product of 
 his distillery, or that the distillery apparatus was wrong- 
 fully used. 
 
 The only necessary elements are that the person shall 
 be engaged in carrying on the business of a distiller, and 
 that he shall defraud or attempt to defraud the United 
 States of the tax on the spirits distilled by him. The for- 
 feiture is to be enforced by a civil suit in rem and the 
 fine and imprisonment in a criminal proceeding. (Coffey 
 V. United States, 32 Int. Rev. Rec, 39; 116 U. S., 427.) 
 
 One who has been fined and imprisoned under section 
 3257, for illicit distilling, is estopped to claim. as his own 
 the distillery and spirits forfeited thereby ; and such a 
 conviction is not a bar to the proceeding in rem required 
 by section 3453 to declare and perfect the forfeiture. 
 (United States v. Three Copper Stills, etc., 47 Fed., 495.) 
 Forfeiture of a distillery is not a bar to the prosecution 
 of a stockholder personally, (Wood v. United States, 204 
 Fed., 55.) 
 
 Forfeiture may be contested by claimant of the property 
 
 or sureties on its bond in case a bond is given. (United 
 
 States V. One Distilfery and Fixtures, etc., 193 Fed., 720.) 
 
 The provisions of this section apply to fruit distillers. 
 
 (United States i: Ridenour, 119 Fed., 411.) 
 
 Sec. 3258. Every person having in his possession or 
 custody, or under hi^^yjy^,j^^y^;^^o^distilling ap- ' 
 
 140184°— 20— 14 
 
 Registry- 
 stills, etc. 
 
210 
 
 DISTILLED SPIRITS. 
 
 Forfeiture. 
 
 Penalty. 
 
 paratus set up, shall register the same with the collector 
 of the district in which it is, by subscribing and filing 
 with him duplicate statements, in writing, setting forth 
 the particular place where such still or distilling appa- 
 ratus is set up, the kind of still and its cubic contents, 
 the owner thereof, his place of residence, and the pur- 
 pose for which said still or distilling apparatus has been 
 or is intended to be used ; one of which statements shall 
 be retained and preserved by the collector, and the other 
 transmitted by him to the Commissioner of Internal 
 Kevenue. Stills and distilling apparatus shall be regis- 
 tered immediately upon their being set up. 
 
 Every still or distilling apparatus not so registered, 
 together with all personal property in the possession or 
 custody, or under the control of such person, and found 
 in the building, or in any yard or inclosure connected 
 with the building in which the same may be set up, shall 
 be forfeited. 
 
 And every person having in his possession or custody, 
 or under his control, any still or distilling apparatus set 
 up which is not so registered, shall pay a penalty of five 
 hundred dollars, and .shall be fined not less than one 
 hundred dollars, nor more than one thousand dollars, 
 and imprisoned for not less than one month, nor mora 
 than two years. 
 
 The requirements of this section apply to all stills " sec 
 up," of whatever size, and for whatever purpose intended. 
 (Regulations No. 7, revised, p. 6.) 
 
 Stills used for distillation of brandy from fruit are re- 
 quired to be stamped with a number, the letters and 
 figures to be not less than three-eighths of an inch long. 
 ( Regulations No. 7, revised, p. 206. ) 
 
 Registry qf stills. (T. D. 193; T. D. 337; T. D. 918; 
 T. D. 1021 ; T. D. 1344 ; T. D. 1817.) 
 
 Notice ot m- Sec. 3259. Every ^erson engaged In, Or intending to be 
 on""busi*ness''"df engaged in, the business of a distiller or rectifier, shall 
 distiller or rec- give noticB in Writing, subscribed by him, to the collector 
 of the district wherein such business is to be carried on, 
 stating his name and residence, and, if a company or 
 firm, the name and residence of each member thereof, 
 the name and residence of every person interested or to 
 be interested in the business, the precise place where said 
 business is to be carried on, and whether of distilling or 
 rectifying; and if such business is carried on in a city, 
 the residence and place of business shall be indicated by 
 the name of the street and number of the building. In 
 case of a distiller, the notice shall also state the kind of 
 stills and the cubic contents thereof, the number and 
 kind of boilers, the number of mash-tubs and f ermenting- 
 tubs, the_ cubic contents of each tub, the number of re- 
 ceiving-cisterns, the cubic contents of each cistern, the 
 number of hours in which the distillery will ferment 
 each tub of mash or beer, the estimated quantity of dis- 
 tilled spirits which the apparatus is capable of distilling 
 every twer^|g^:^^i^P^^j3^cular description of the 
 
 tiller. 
 
DISTILLED SPIRITS. 211 
 
 lot or tract of land on whicli the distillery is situated, 
 and of the buildings thereon, including their size, ma- 
 terial, and constiniction ; and that said distillery premises 
 are not within six hundred feet, in a direct line, of any 
 premises authorized to be used for rectifying or refining 
 distilled spirits by any process. . 
 
 In case of a rectifier, the notice shall state the precise 
 place "where such business is to be carried on, the name 
 and residence of every person interested or to be inter- 
 ested in the business, the process by which the applicant 
 intends to rectify, purify, or refine distilled spirits, the 
 kind and cubic contents of any still used or to be used 
 for such purpose, the estimated quantity of spirits, which 
 can be rectified, purified, or refined every twenty-four 
 hours in such establishment, and that said rectifying 
 establishment is not within six hundred feet, in a direct 
 line, of the premises of any distillery registered for the 
 distillation of spirits. 
 
 In case of any change in the location, form, capacity, 
 ownership, agency, superintendeney, or in the persons 
 interested in the business of such distillery or rectifying 
 establishment, or in the time of fermenting the mash or 
 beer, notice thereof, in writing, shall be given to the said 
 collector or proper deputy collector of the district within 
 twenty-four hours after such change; and any deputy 
 collector receiving such notice shall immediately transmit 
 the same to the collector of the district. Every notice p^™"''- 
 required by this section shall be in such form, and shall 
 contain such additional particulars, as the Commissioner 
 of Internal Kevepue may, from time to time, prescribe. 
 
 Every person who fails or refuses to give such notice 
 shall pay a penalty of one thousand dollars, and shall be 
 fined not less than one hundred dollars nor more than 
 two thousfind dollars ; and every person _ who gives a 
 false or fraudulent notice shall, in addition to such 
 penalty or fine, be imprisoned not less than six months 
 nor mca?e than two years. 
 
 Section 7, act of March 1, 1879, requirement as to recti- 
 fier's bond, repealed by section 9, act of May 28, 1880 (21 
 Stat^ 145). 
 
 Successions and changes of name or style of distillers. 
 (Int. R«v. Circular No. 524, T. D. 20835 ; Regulations No. 7, 
 revised, pp. 11, 207.) 
 
 Evidence of violation of statute. (Pocahontas Distilling 
 C!o. V. United States, 218 Fed., 782.) 
 
 Sec. 3360. [Amended hy sec. 1, act of May 28, 1880 {^1 Distniertopve 
 Stat., 145).] Every person intending to commence or to'^'""^- 
 continue the business of a distiller shall, on filing with the 
 collector his notice of such intention, and before proceed- 
 ing with sueli business, and on the first day of May pf each 
 spioceeding year, execute a bond in the iorm prescribed bj 
 the Commissioner of Internal Revenue, conditioned that 
 he shall faithfully comply with all the provisions of law 
 relating to the duties and 'business of distillers, and shall 
 pay all penalties incu^^j^^%^j^§^on him for a 
 
212 DISTILLED SPIRITS. 
 
 violation of any of the said provisions ; and that he shall 
 not suffer the lot or tract of land on which the distillery 
 stands, or any part thereof, or any of the distilling ap- 
 paratus, to be incumbered by mortgage, judgment, or 
 other lien, during the time in which he shall carry on said 
 business. Said bond shall be with at least two sureties, 
 approved by the collector of the district, and for a penal 
 sum not less than * the amount of tax on the spirits 
 that can be distilled in his distillery during a period of 
 fifteen days. But in no case shall the bond exceed the 
 sum of one hundred thousand dollars. 
 
 The collector may refuse to approve said bond when, in 
 his judgment, the situation of the distillery is such as 
 would enable the distiller to defraud the United States; 
 and in case of such refusal the distiller may appeal to the 
 Commissioner of Internal Revenue, whose decision in the 
 
 New bond. matter shall be final. A new bond shall be required in 
 case of the death, insolvency, or removal of either of the 
 sureties, and may be required in any other contingency at 
 the discretion of the collector or Commissioner of Inter- 
 nal Revenue, 
 
 Every person who fails or refuses to give the bond here- 
 inbefore required, or to renew the same, or who gives any 
 false, forged, or fraudulent bond, shall forfeit the distill- 
 ery, distilling-apparatus, and all real estate and premises 
 
 Penalty. connected therewith, and shall be fined not less than five 
 
 hundred dollars nor more than five thousand dollars, and 
 imprisoned not less than six months nor more than two 
 years. 
 
 Officers should segregate the amounts by periods covered 
 by the different bonds, giving the amount for which each 
 bond is liable. (T. D. 1541.) 
 
 Sec. 602. [Act of February U, 1919 {Jfi Stat., 1057).'] 
 The Commissioner, with the approval of the Secretary, 
 ethyi™?cohoi. °' ^^J ^^ regulations exempt distillers of ethyl alcohol, for 
 use in the production of munitions of war, or for other 
 nonbeverage purposes, from so much of the provisions of 
 sections 3264, 3285, or 3309 of the Revised Statutes, and 
 acts amendatory thereof, * * * , as, in his judg- 
 ment, may be expedient : Provided, That the bond pre- 
 scribed in section 3260 of the Revised Statutes shall, in 
 the cases herein provided, be in such sum and contain 
 such further conditions as the Commissioner may require. 
 votee"'irTp^ Sec. 67. [Act of August 27, 1894 {38 Stat., S09) .] That 
 prove bond of whenever any person intending to commence or to con- 
 tafn"cases." '^'"'' tinue the business of a distiller shall execute a bond 
 under the provisions of section thirty-two hundred and 
 sixty of the Revised Statutes of the United States, and 
 file the same with the collector of internal revenue for 
 the district in which he proposes to distill, the collector 
 may refuse to approve said bond if the person offering 
 the same shall have been previously convicted, in a court 
 of competent j-urisdictipn, of any fraudulent noncompli- 
 ance with%<f'Wl'eW^» of law relating to the 
 
DISTILLED SPIRITS. 213 
 
 duties and business of distillers, or if the Commissioner 
 of Internal Revenue, with the approval of the Secretary 
 of the Treasury, shall have compromised such an offense 
 with the person upon the payment of penalties or other- 
 wise, and, in case of such refusal, the person so proposing 
 to distill may appeal to the Commissioner of Internal 
 Revenue, whose decision in the matter shall be final. 
 
 Congress has the power to require a bond as a condition 
 precedent to commencing business. (Mason v. Rollins, 
 2 Biss., 99; Fed. Cas. 9252.) 
 
 Discretionary power of collectors as to approval of bonds. 
 (T. D. 998.)- 
 
 Necessity for increased vigilance on the part of collectors 
 to avoid the taking of worthless bonds. (T. D. 816.) 
 
 Additional bonds required when Government's interests 
 not adequately protected. (T. D. 2578.) 
 
 A suit on a distiller's bond is not a suit for penalty, but 
 an action on a contract. (United States v. Dutcher, 2 
 Biss., 51; 25 Fed. Cas. 15014; 8 Int. Rev. Rec, 161; Ray- 
 mond V. United States, 14 Blatch., 51; 20 Fed. Cas. 11596.) 
 
 Stockholders of a corporation engaged in distilling can 
 not be accepted as^ sureties. (16 Op. Atty. Gen., 10; 24 
 Int. Rev. Rec, 153.) 
 
 Bond of a corporation. Evidence of authority. (T. D. 
 852.) 
 
 Bond valid though not in form prescribed. (United 
 States V. Hodson, 10 Wall., 395; 12 Int. Rev. Rec, 213; 
 United States r. Mynderse, 12 Id., 104; 14 Id., 180.) 
 
 Where a bond contains conditions, some of which are 
 legal and others illegal, and they are severable and sepa- 
 rable, the latter may be disregarded and the former en- 
 forced. (United States v. Hodson, 10 Wall., 395.) 
 
 Married women giving bond. (United States v. Garling- 
 house, 4 Ben., 194 ; 11 Int. Rev. Rec, 11. ) 
 
 A married woman will not be accepted as surety. (Dept. 
 Cir. 70, Nov. 23, 1907.) 
 
 Collector should "require compliance with State law. (T. 
 D. 755.) 
 
 Any private agreement made by an officer which in any. 
 way changes the terms of the bond is as to the Government 
 inoperative and void. (United States v. Bicket, 16 Int. 
 Rev. Rec, 85; Fed. Cas. 14590.) 
 
 Liability for tax. — The distiller's bond is liable for the 
 tax on snirits not paid by the distiller. (United States v. 
 National" Surety Co., 157 Fed., 174, citing United States v. 
 National Surety Co., 122 Fed., 904 ; 59 C. C. A., 130 ; T. D. 
 665.) 
 
 Distiller's bond binding him to comply with all the pro- 
 visions of law and regulations in relation to the duties and 
 business of a distiller, held to cover taxes assessed on 
 spirits distilled. (United States Fidelity & Guaranty Co. v. 
 United States, 201 Fed., 91; T. D. 1824.) 
 
 The execution of a warehousing bond covering spirits 
 placed in a warehouse does not release liability on the 
 annual bond. (United States v. Richardson, 127 Fed., 893.) 
 
 Effect of surety signing upon condition another name is 
 added. (Dair v. United States, 16 Wall., 1; 18 Int. Rev. 
 Rec, 10.) 
 
 Recovery of fine on distiller's bond. (United States v. 
 Thompson, 37 Int. Rev. Rec, 160 ; 45 Fed., 468.) 
 
 In suits brought to recover, forfeiture the court shall 
 render judgment " to recover so much as is due according 
 to equity." (Sec 961, R. S.) 
 
 Defenses on suits on bonds. — Validity of assessment 
 (Clinkenbeard v, €Sgiibl^slS^Mtcremm®5 ; 21 Int. Rev. 
 
214 DISTILLED SPIEITS. 
 
 Rec, 37). Compromise with principal (United States v. , 
 Chouteau, 102 XJ. S., G03; 27 Int. Bev. Rea, 49). As to 
 assessment beiBg prima facie ievidence only (United States 
 V. Kindskopf, 105 U. S,, 418; 28 Int. Rev. Rec, 141. See 
 notes undfr sec. -3182, R. S.). 
 
 The bond covers not merely duties iinposed by existing 
 law, but duties belonging to an-d naturally connected -wieh 
 the business iinposed by subsequent law. (United States 
 V. Singer, 15 Wall., 112; 17 Int. Bev, Rec, 9. See also 
 United- States v. Powell, 14 Wall., 493 ; 17 Int. Hev. Rec, 
 18.) 
 
 Circumstantial evidence. (United States v. Cole, 134 
 Fed., 697; T. D., 786.) 
 
 Liability of sureties. — Liability of surety not to be ex- 
 tended beyond the terms of the contract. When, after a 
 bond has been signed by two sureties with the understand- 
 ing between them and the obligor and obligee that it was to 
 be signed by a third surety whose name was written in the 
 bond, the name of the third surety was altered in the body 
 of the instrument, with tloe knowledge of the obligee, by the 
 substitution of a different surety, who then signed the 
 bond : Held, that the two sureties were discharged. 
 '(United States v. O'Neill and others, 30 Int. Rev, Rec, 127 ; 
 W Fed., 667.) 
 
 Surety not liable when the United States purchases spir- 
 its in a distiller's warehouse without retaining the tax due. 
 (United States r. Aiken, 110 Fed., 370; affirmed in United 
 States V. Mullins (surety), 119 Fed., 334.) 
 
 Sureties aot liable when distillery is carried on at a place 
 other than that naentione* in bond. (United States v. 
 Boecteer, 21 Wall., 652; 21 Int. Rev. Rec^ 78.) 
 
 Bond not liable for tax when spirits are forfeited and 
 sold and tax collected from purchaser. (United States v. 
 VlTKi, 111 U. S., 38 ; 30 Int. Rev. Rec, 111.) 
 
 Two assessments eov«ring partially tlie same period will 
 be presumed to be for different liquors till tlie -contrary is 
 shown. 
 
 An action upon a bond conditioned upon thie payment of 
 an assessment will not fail because the complaint does not 
 set forth the whole of the assessment. (United States v. 
 O'Neill, 30 Int. Rev. Rec, 127; 19 Fed., 567.) 
 
 In an action on a distiller'is bond upon the question 
 whether the sureties were entitled to a deduction of the 
 amount realized from sale of distiller's personal property, 
 held, that the Judgment should be entered for the full 
 amount of the bond, the sum realized from the personal 
 property not being a legal offset. (United States r. Loeb, 
 14 Fed., 688.) 
 
 The proceeds of a sale of spirits forfeited for violation 
 of the internal-revenue law belong exclusively to the Gov- 
 ernment, and can not be applied to the payment of tax. 
 (HarMns r. Williard, 146 Fed., 703; 77 C. C. A., 129; T. D. 
 1030.) 
 
 When spirits are forfeited and sold and the tax paid by 
 the purchaser, surety on bond is relieved from liability on 
 account of an assessment against the distiller for tax on 
 the same spirits. (United States v. National Surety. Co., 
 Circuit Court of Appeals (1907), 1.57 Fed., 174, affirming 
 United States v. Witt, U. S. Circuit Court, norSiern dis- 
 trict of Georgia, following United States v. UTlrici, 111 
 U. S., 38 ; 30 Int. Rev. Rec, 111. See United States Fidel- 
 ity & Guaranty Co. v. United States, 158 Fed., ^04, revers- 
 ing 144 Fed., 866; T. D. No. 975.) 
 
 Inability for tax when spirits are seized and sold for 
 violation of law. (T. D. •923; T. 'D. 13S5.) 
 
 Suits should be first brou^t on warehousing bonds Ho 
 recove]Dy^'zec/fej>lAfK;/teSaft®resorting to the distiller's 
 
DISTILLED SPIEITS. 215 
 
 bond. (T. D. 20920; United States v. National Surety Co., 
 122 Fed., 904; T. D. 665.) 
 
 Ladies. — Laches' oJ' officers does not relieve sureties. ' 
 (United States v. Hosmer, 17 Int. Rev. Rec, 38; Fed. Cas. 
 No. 15394 ; 21 Int. Rev. Rec, 14 ; Minturn v. United States, 
 29 Int. Rev. Rec, 34; 106 U. S., 487; United States v. 
 Campbell, 170 Fed., 318.) 
 
 Negligence of an officer in permitting the removal of dis- 
 tilled spirits from a distillery warehouse before payment 
 ' of taxes. (Hart v. Unltpd States, 95 U. S., 316.) 
 
 The stealing of spirits from warehouse by reason of the 
 omission of officers to provide sufficient loCks is no defense 
 to action on bond. (United States v. Witten, 143 U. S., 76; 
 38 Int. Rev. Rec, 46. ) 
 
 The laws in regard to bonds not to be regarded as penal 
 but remedial, to be liberally construed. (United States v. 
 National Surety Co., 59 C. C. A. 130; 122 Fed., 904.) 
 
 Where spirits were lost by reason of the negligence of a 
 Government officer, after the same had been taken in pos- 
 session by the Government, the bond is liable for the tax. 
 (United States. -y. Guest, 148 Fed., 456; T. D. 979; United 
 States V. Sisk, 176 Fed., 885.) 
 
 Opening judgment ; new trial. A court has no power to 
 open a judgment against the surety on a distiller's bond and 
 grant a new trial upon the ground that certain facts, exist- 
 ing when the case was tried, were not then put in evidence. 
 (United States v. Millinger, 7 Fed., 187.) 
 
 Production of papers. — Tlie defendants in a suit on a dis- 
 tiller's bond, instituted for the recovery of taxes assessed 
 under section 3253, Revised Statutes, have no legal right to 
 the use at the trial of the reports, documents, and other 
 papers on file in the office of the Commissioner of Internal 
 Revenue. Nor has the court authority to compel the pro- 
 duction of such papers. (16 Op. Atty. Gen., 24; 24 Int. 
 Rev. Rec, 178.) 
 
 Fraudulent iond. — Indictment for executing and signing 
 a false and fraudulent bond. (United States v. O'Brien, 7 
 Int. Rev. Rec, 61; Fed. Cas. 15909.) 
 
 Sec. 3261. No collector shall approve the bond of any ^ ''"^"ea™"" ^i 
 distiller until all the requirements of the law and all regu- iaw'°and ?eguia- 
 lations made by the Commissioner of Internal Revenue in ^\™| ^[^^ ™™" 
 relation to distilleries, in pursuance thereof, have been 
 complied with. 
 
 Every collector who violates this provision shall forfeit ^ouector*'^^^^''"'* 
 and pay two thousand dollars, and be dismissed from 
 office. 
 
 Sec. S2Q2.lAmended hy sec. 2, act of May 28, 1880 {21 ^J^^^f^,^\^^l 
 Stat., H6) .] No bond of a distiller shall be approved, simple, or have 
 unless he is the owner in fee, unincumbered by any mort- oY owner, rtc!"'' 
 gage, judgment, or other lien, of the lot or tract of land 
 on which the distillery is situated, or unless he files with 
 the collector, in connection with his notice, the written 
 consent of the owner of the fee, and of any mortgagee, 
 judgment-creditor, or other person having a lien thereon, 
 duly acknowledged, that the premises may be used for the 
 purpose of distilling spirits, subject to the provisions of 
 law, and expressly stipulating that the lien of the United 
 States for taxes and penalties shall have priority of such 
 mortgage, judgment, or other incumbrance, and that in 
 case of the forfeiture of the distillery premises, or of any 
 part thereof, the titleoji^/tfee^qgpgVfife^^j?!^ in the United 
 
216 DISTILLED SPIRITS, 
 
 States, discharged from such mortgage, judgment, or 
 other incumbrance. 
 
 In any case where the owner of a distillery of distilling- 
 apparatus, erected prior to the twentieth day of July, 
 eighteen hundred and sixty-eight has only an estate for a 
 term of years or other estate less than fee-simple in the lot 
 or tract of land on which the distillery is situated, the evi- 
 dence of title to which shall have been duly recorded prior 
 to that date ; or in like case, where the lease or other evi- 
 dence of title is held but was not required by the laws of 
 the State to be recorded in order to be valid at the time of 
 its execution ; or in any case of such prior erection where 
 the title was then, and has continued to be, in litigation; 
 or in any case of such prior erection where such owner is 
 possessed of the fee, but incumbered with a mortgage exe- 
 cuted and duly recorded prior to said twentieth of July, 
 eighteen hundred and sixty-eight, and not due, or in any 
 case of such prior erection where the fee is held by a feme- 
 covert, minor, 'person of unsound mind, or other person 
 incapable of giving consent, as hereinbefore required, the 
 value of such lot or tract of land, together with the build-' 
 ing and distilling-apparatus, shall be appraised in the 
 manner to be prescribed by the Commissioner of Internal 
 Revenue; and the collector may, at the discretion of the 
 Commissioner, be authorized to accept, in lieu of the said 
 written consent of the owner of the fee, the bond of such 
 distiller, in such form as the Commissioner may prescribe, 
 with not less than two sureties, conditioned that in case 
 the distillery, distilling-apparatus, or any part thereof, 
 shall by final judgment be forfeited for the violation of 
 any of the provisions of law, the obligors shall pay the 
 amount stated in said bond. Said sureties shall be resi- 
 dents of the collection-district or county, or of an adjoin- 
 ing county in the same State in which the distillery is sit- 
 uated, and owners of unincumbered real estate in said 
 district or county, or adjoining county, equal to such ap- 
 praised value, and the penal sum of said bond shall be 
 equal to the appraised value of said lot or tract of land 
 together with the buildings and distilling apparatus: 
 
 Provided, That in case of any distillery sold at judi- 
 cial or other sale in favor of the United States, a bond 
 may be taken at the discretion of the Commissioner of 
 Internal Eevenue, in lieu of the written consent re- 
 quired by this section, and the person giving such bond 
 may be allowed to operate such a distillery during the 
 existence of the right of redemption from such sale, 
 on complying with all the other provisions of law. 
 
 And provided also, That the collector may at any 
 time, at the discretion of the Commissioner, accept such 
 bond as is authorized to be given by the distiller in lieu 
 of the written consent of the owner of the fee in the 
 case of a distillery erected prior to July twentieth, eight- 
 een hundrecL-and sixtv-j^glit. nid^ such dis- 
 tillery has M^ftFllM?Msed by the Addition of 
 
DISTILLED SPIRITS. 217 
 
 land or buildings adjacent or contiguous thereto, not 
 owned by the distiller himself in fee; such bond to be 
 for and in respect of such addition only, if the dis- 
 tillery be one which the distiller owns in fee or in re- 
 spect to which he has procured the written consent of 
 the owner of the fee or other incumbrance, otherwise to 
 be for and in respect of the entire distillery as increased 
 by such additions. 
 
 Enforcement of lien; sale of leasehold interest. (Mans- 
 field V. Excelsior Refinery Co., 36 Int. Rev. Rec, 165; 135 
 U. S., 326.) 
 
 Liability of sureties when distillery premises are en- 
 cumbered. ( Osborne v. United States, 19 Wall., 577 ; 20 
 Int. Rev. Rec, 126.) 
 
 Sec. 3263. Every distiller and person intending to en- . Pian of dis- 
 gage in the business of a distiller shall, previous to the ^'^^^'^' 
 approval of his bond, cause to be made, under the direc- 
 tion of the collector of the district, an accurate plan and 
 description, in triplicate, of the distillery and distilling- 
 apparatus, distinctly showing the location of every still, 
 boiler, doubler, worm-tub, and receiving-cistern, the 
 course and construction of all fixed pipes used or to be 
 used in the distillery, and of every branch and every 
 cock or joint thereof, and of every valve therein, to- 
 gether with every place, vessel, tub, or utensil from and 
 to which any such pipe leads, or with which it com- 
 municates; also the number and location and cubic con- 
 tents of every still, mash-tub, and fermenting-tub, the 
 cubic contents of every receiving-cistern, and the color 
 of each fixed pipe, as required in this Title. One copy 
 of said plan and description shall be kept displayed 
 in some conspicuous place in the distillery, and two 
 copies shall be furnished to the collector of the district, 
 one of which shall be kept by him, and the other trans- 
 mitted to the Commissioner of Internal Revenue. The 
 accuracy of every such plan and description shall be 
 verified by the collector, the draughtsman, and the dis- 
 tiller; and no alteration shall be made in such distillery 
 without the consent, in writing, of the collector. Any 
 alteration so made shall be shown on the original, or 
 by a supplemental plan and description, and a reference 
 thereto noted o,n the original, as the collector may direct; 
 and any supplemental plan and description shall be exe- 
 cuted and preserved in the same manner as the original. 
 
 Distillers whose distilleries have a daily spirit-producing 
 capacity of 30 gallons of proof spirits, or less, are ex- 
 empted from the provision requiring a plan. (Sec. 5, act 
 Of Mareb 1, 1879; p. 208.) 
 
 Sec. S2Q4:.[Amended hy sec. S, act of March 1, 1879 {W dis|Se"<'.' ''^ "' 
 Stat., 327) , act of June 22, 1910 {36 Stat., 690) , sec. m, 
 act of September 8, 1916 (39 Stat., 756), and sec 6£S 
 of act of February 24, 1919 {1ft Stat., 1057.)]. On re- 
 ceipt of notice that any person, firm, or corporation 
 wishes to commence ftf©;ffe^'gW^Mft^dMfiW^"S? t^® ^^^' 
 lector, or a deputy collector, to be designated by him, 
 
218 DISTILLED SPIRITS. 
 
 shall proceed in person, at the expense of the United 
 States, with the aid of an assistant designated by the 
 Commissioner of Internal Eevenue for the purpose of 
 making surveys of distilleries in that district, to make 
 a survey of such distillery for the purpose of estimat- 
 ing and determining its true spirit-producing capacity 
 for a day of twenty-four hours. 
 
 In all surveys forty-five gallons of mash or beer brewed 
 or fermented from grain shall represent not less than one 
 bushel of grain, and seven gallons of mash or beer brewed 
 or fermented from molasses shall represent not less than 
 one gallon of molasses, except in distilleries operated on 
 the sour-mash principle, in which distilleries sixty gallons 
 of beer brewed or fermented from grain shall represent 
 not less than one bushel of grain, and except that in 
 distilleries where the filtration-aeration process is used, 
 with the approval of the Commissioner of Internal Eeve- 
 nue; that is, where the mash after it leaves the mash tub 
 is passed through a filtering machine before it is run into 
 the fermenting tub, and only the filtered liquor passes 
 into the fermenting tub, there shall hereafter be no limita- 
 tion upon the number of gallons of water which may be 
 used in the process of mashing or filtration for fermenta- 
 tion ; but the Commissioner of Internal Eevenue, with the 
 approval of the Secretary of the Treasury, in order to 
 protect the revenue, shall be authorized to prescribe by 
 regulation, to be made by him, such character of survey as 
 he may find suitable for distilleries using such filtration- 
 aeration process. The provisions hereof relating to filtra- 
 tion-aeration process shall apply only to sweet-mash 
 distilleries. 
 ' A written report of such survey shall be made in tripli- 
 
 cate, of which one copy shall be delivered to the distiller, 
 one copy shall be retained by the collector, and one copy 
 shall be transmitted to the Commissioner of Internal Eev- 
 enue, and the survey shall take effect upon the delivery of 
 such copy to the distiller. 
 Eesurvey. Whenever the Commissioner is satisfied that any report 
 
 of the capacity of a distillery is incorrect or needs revision, 
 he shall direct the collector to make in like manner an- 
 other survey of said distillery, and the report thereof shall 
 be made and deposited as hereinbefore required : 
 
 Provided, That the survey of any distillery estimated 
 and stated by the distiller, in his notice of intention to 
 distill, as capable of distilling not more than one hundred 
 and fifty proof-gallons of distilled spirits every twenty- 
 four hours may be made by the collector or by a deputy 
 collector without the aid of an assistant ; and that all sur- 
 veys made for the purpose of correcting clerical errors or 
 errors of computation existing in the report of a previous 
 survey, and all surveys made for the purpose of changing 
 the true spirit-producing capacity of any distillery for a 
 day of twentj-four hours as estimated and determined bv 
 a previousQilf*«^totM35ese'?<gtveys do not require the 
 
DISTILLED SPIEITS. 219 
 
 remeasuring of the f ermenting-tubs in a grain or molasses 
 distillery, or the still or stills in a distillery of apples, 
 peaches, or grapes exclusively, may be made without tak- 
 ing the measurements of the fermenting tubs or stills, as 
 the case may be, and without revisiting the distillery : 
 
 An.d provided further, That the Commissioner of In- 
 ternal Revenue may, whenever he shall deem it proper, 
 designate an officer, agent, or person other than the col- 
 lector or deputy collector, to make, with or without the 
 aid of a designated assistant, the surveys and I'esurveys 
 hereinabove provided for. 
 
 As to necessity of delivering a copy of the survey to a 
 distiller to fix bis liability ; survey binding on distiller. 
 (Peabody v. Stark, 16 Wall., 240; 17 Int. Bev. Eec, lOa 
 United States v. Ferrary, 93 U. S. (3 Otto) , 625 ; 22 Int. Eev, 
 Rec, 394. Wright v. United States, 108 U. S., 281.) 
 
 Circular No. 7S9 (T. D. 1641). Filtration-- aeration 
 process. (See T. D. 2^3.) 
 
 S33C. 602._ [Act of Febriimy H-, 1919 {Jfi Stat., 1057).'] ethyfTiEohS. °* 
 The Commissioner, with the approval of the Secretary, 
 may by regulations exempt distillers of ethyl alcohol, for 
 use in the production of munitions of war, or for other 
 nonbeverage purposes, from so much of the provisions of 
 sections 3264, * * *, and Acts amendatory thereof, 
 * * * as, in his judgment, may he expedient: Pro- 
 vided, That the bond prescribed in section 3260 of the 
 Revised Statutes shall, in the cases herein provided, be 
 in such sum and contain such further conditions as the 
 Commissioner may require. 
 
 Surveys of distilleries at wbich ethyl alcohol is manufac- 
 tured for use in production of munitions of war or for non- 
 beverage purposes. (T. D. 2845.) 
 
 Surveys of industrial distilleries abolislied. (T. D. 2728.) 
 
 Sec, 3265. Any person who manufactures any still, maSitacturlr "S 
 boiler, or other vessels to be used for the purpose of dis- -i shu- 
 tilling, shall, before the same is removed from the place 
 of manufacture, notify in writing the collector of the dis- 
 trict in which such still, boiler, or other vessel is to be used 
 or set up, by whom it is to be ilsed, its capacity, and the 
 time when the same is to be removed from the place of 
 manufacture; and no such still, boiler, or other vessel 
 shall be set up without the permit in writing of the said 
 collector for that purpose; and any person who sets up 
 any such still, boiler, or other vessel, without first obtain- setting" "up'^stm 
 ing a permit from the said collector of the district in without permit. 
 which such still, boiler, or other vessel is intended to be 
 used, or who fails to give such notice, shall pay in either 
 case the sunt of five hundred dollars, and shall forfeit the 
 distilling apparatus thus removed or set up in violation 
 of law. 
 
 Section 3265 applies only to .stills intended for distillation 
 of spirits. (T. X). 1344.) See section 3258. 
 
 This section does not apply to stills for redistilling benzine 
 and gasoline. <T. D. 1021.) 
 
 Digitized by Microsoft® 
 
220 DISTILLED SPIBITS. 
 
 cemfn'^'^mises ^^^' ^^66. No person shall use any still, boiler, or other 
 prohibited ; pen- vessel, f or the purpose of distilling, in any dwelling-house, 
 ^"''" or in any shed, yard, or inclosure connected ■ with any 
 
 dwelling-house, or on board of any vessel or boat, or in 
 any building, or on any premises where beer, lager beer, 
 ale, porter, or other fermented liquors, vinegar, or ether 
 are (is) manufactured or produced, or where sugars or 
 sirups are refined, or where liquors of any description are 
 retailed, or where any other business is carried on; or 
 within six hundred feet in a direct line of any premises 
 authorized to be used for rectifying; and every person 
 who does any of the acts prohibited by this section, or aids 
 or assists therein, or causes or procures the same to be 
 done, shall be fined one thousand dollars and imprisoned 
 for not less than six months nor more than two years, in 
 the discretion of the court, for each such offense: Pro- 
 vided, That saleratus may be manufactured, or meal or 
 flour ground from grain, in any building or on any prem- 
 ises where spirits are distilled ; but such meal or flour shall 
 be used only for distillation on the premises: Provided 
 further, That any boiler used in generating steam or heat- 
 ing water to be used in any distillery, may be located in 
 any other building or on any other premises to be con-: 
 nected with such still or boiling-tubs, by suitable pipes or 
 other apparatus, or the steam from such boiler in the dis- 
 tillery may be conveyed to other premises to be used for 
 manufacturing or other purposes. 
 
 Vinesiir. ( Sec. 3282. ) See act of June 14, 1879, page 232. 
 
 Rectifying within 600 feet. See section 3244, subsection 
 tliird ,and section 3280 (8 Int. Rev. Rec, 73). 
 
 Distilling on premises wliere vinegar was manufactured. 
 (United States i\ Simmons, 96 U. S. (6 Otto), 360; 24 Int. 
 Rev. Rec, 347.) 
 
 Indictment under section 3266. (United States v. Ma- 
 lone, 9 Fed., 897.) 
 
 The prohibition of a distillery within 600 feet of a rectify- 
 ing establishment is not an unwarrantable interference 
 with the use and disposition of property. If a business af- 
 fords unusual facilities for evading the Government tax, 
 then Congress may prescribe the modes, conditions, and 
 limitations under which that business can be transacted. 
 (MaSon V. Rollins, 2 Biss., 99.) 
 
 Eeceivirg-cis- Sec. 3267. The owuer, agent, or superintendent of any 
 leries. '" '''^'''" distillery established as hereinbefore provided, shall erect 
 in a room or building to be provided and used for that 
 IDurpose, and for no other, and to be constructed in the 
 manner to be prescribed by the Commissioner of In- 
 ternal Revenue, two or more receiving-cisterns, each to 
 be at least of sufficient capacity to hold all the spirits 
 distilled during the day of twenty-four hours, into which 
 shall be conveyed all the spirits produced in said dis- 
 tillery ; and each of said cisterns shall be so constructed 
 as to leave an open space of at least three feet between 
 the top thereof and the floor or roof above, and of not 
 less than eighteen inches between the bottom thereof and 
 the floor bMg^e^'f^^sMiffcW^ situated that the officer 
 
DISTILI^D SPIRITS. 221 
 
 can pass around the same, and shall be connected with 
 the outlet of the worm or condenser by suitable pipes 
 or other apparatus, so constructed as always to be ex- 
 posed to the view of the officer, and so connected and 
 constructed as to prevent the abstraction of spirits while 
 passing from the outlet of the worm or condenser back 
 to the still or doubler, or forward to the receiving-cistern. 
 Such cisterns and the room in which they are contained 
 shall be in charge and under the lock and seal of the 
 internal-revenue ganger designated for that duty; and 
 all locks and seals required by law shall be provided by 
 the Commissioner of Internal Eevenue, at the expense 
 of the United States; and the keys shall be in charge 
 of the collector or such ganger as he may designate. On 
 the third day after the spirits are conveyed into such 
 cistern they shall be drawn off into casks, under the 
 supervision of such ganger, in the presence of the store-- 
 keeper, and be removed directly to the distillery ware- 
 house; but on special application to the collector by the 
 owner, agent, or superintendent of any distillery, the 
 spirits may be drawn off from said cisterns, under the 
 supervision of the ganger, at any time previous to the 
 third day. 
 
 See Section 5, act of March 1, 1879, page 208, allowing ex- 
 emption from certain provisions of this section in case of 
 small distilleries. 
 
 The penalty for failing to comply with the requirements 
 of this section is provided by section 3456, page 361. 
 (United States v. Wm. McKim & Co., 10 Int. Kev. Rec. 74.) 
 
 Question of intent considered. (Felton v. United States, 
 96 U. S. (6 Otto) 699; 24 Int. Rev. Rec, 252.) 
 
 Sec. 3268. Every person who destroys, breaks, injures. Breaking locks, 
 or tampers with any lock or seal which may be placed to cistern, etc ; 
 on any cistern-room or building by the duly authorized P«°«'*y- 
 officers of the revenue, or opens said lock or seal, or the 
 door to said cistern-room or building, or in any manner 
 gains access to the contents therein, in the absence of the 
 proper officer, shall be fined not less than five hundred 
 dollars nor more than five thousand dollars, and im- 
 prisoned not less than one year nor more than three years. 
 
 Gaining access to distillery bottling warehouse without 
 authority. (T. D. 990.) 
 
 Tampering with locks, etc., penalty. (Sec. 3311, p. 267.) 
 
 Sec. 3269. The door of the furnace of every still or ^^^^ " ' j",,^^';!^^; 
 boiler used in any distillery shall be so constructed that it wonk-tanks. 
 may be securely fastened and locked. The fermenting- 
 tubs shall be so placed as to be easily accessible to any 
 revenue officer, and each tub shall have distinctly painted 
 thereon in oil-colors its cubic contents in gallons and the 
 number of the tub. There shall be a clear space of not 
 less than one foot around every wood-still, and not less 
 than two feet around every doubler and worm-tank. 
 The doubler and worm-tanks shall be elevated not less 
 than one foot from the floor, and every fixed pipe to be 
 used by the distiller, ^&^imP)tM9^mS§>oi water, or 
 
222 ■ DISTILLED SPIEIXS. 
 
 of spent maah or beer only, shall be so fixed and placed 
 as to be capable of being examined by the officer for the 
 whole of its length or course, and shall be painted, and 
 J kept paiiited, as follows, tliat is to say: Every pipe for 
 
 the conveyance of mash or beer shall be painted of a red 
 color; every pipe for the conveyance of low-wines back 
 into the still or doubler shall be painted blue ; every pipe 
 for the conveyance of spirits shall be painted black, and 
 every pipe for the conveyance of water shall be painted 
 Penalty. white. "Whenever any fixed pipe is used by any distiller 
 which is not painted or kept painted as herein directed, 
 or which is painted otherwise than as herein directed, he 
 shall forfeit the sum of one thousand dollars. 
 
 See section 5, act of March 1, 1879, p. 208, authorizing cei- 
 tain exemptions. 
 
 Apparatus and Sec. 3270. The Commissioner of Internal Eevenue is 
 fastenirgs. authorized to order and require such changes of or addi- 
 
 tions to distilling apparatus, connecting-pipes, pumps, or 
 cisterns, or any machinery connected with or used in or 
 on the distillery premises, or may require to be put on any 
 of the stills, tubs, cisterns, pipes, or other vessels, such 
 fastenings, locks, or seals as he may deem necessary. 
 hoSe."^^"''"'"'' Seo. 3271. Every distiller shall provide, at his own 
 expense, a warehouse, to be situated on and to constitute a 
 part of his di^illery premises, and to be used only for the 
 storage of distilled spirits of his own manufacture until 
 the tax thereon shall have been paid; but no dwelling- 
 house shall be used for such purpose, and no door, win- 
 dow, or other opening shall be made or permitted in the 
 walls of such warehouse leading into the distillery or into 
 any other room or building; and such warehouse, when 
 approved by the Commissioner of Internal Revenue, on 
 report of the collector, is hereby declared to be a bonded 
 warehouse of the United States, to be known as a dis- 
 tillery warehouse, and shall be under the direction and 
 control of the collector of the district, and in charge of an 
 internal-revenue store-keeper, assigned thereto by the 
 Commissioner. 
 
 A bonded warehouse is an agency of the Government 
 (Oeorge «. Fourth National Bank of Lainsville, 41 Fed., 
 263.) 
 
 The Government has a lien on spirits in warehouse for 
 deficiency tax, and a purchaser takes the property subject 
 to the lien. (Hartman vJ Bean, 99 U. S., 393; 25 Int. 
 Kev. Bee., 141. ) 
 
 Goods in the hands of the United States held for taxes 
 can not be attached by State officers. (Harris v. Dennie, 
 3 Pet, 292.) 
 
 Spirits in bond not liable to seizure by sheriff. (McOul- 
 lough V. Large, 20 Fed., 309 ; 30 Int. Rev. Rec, 166 ; T. D. 
 21710; Pattlson v. Dale, 196 Fed., 5.) 
 
 Distilled spirits in a United States bonded warehouse can 
 not be seized under State process. (1894.) (21 Op. Atty. 
 Gen., 73.) 
 
 Sheriff can sell without taking possession, (Kiel v. Har- 
 ris, 31 Int. Rev. Rec., 408.) 
 
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DISTILLED SPIEITS. 223 
 
 The d^osit of spirits in warehoiue is solely foi- the bene- 
 fit of the distiller and to enable him to give bond for pay- 
 ment of the tax instead of paying the tax at once. Govern- 
 ment is not responsible for safe keeping of bonded whiskey 
 deposited in a distillery warehouse. (United States v. Wit- 
 ten, 143 U. S., 76.) 
 
 Instructions relative to the construction of distillery 
 warehouses. (T. D. 2431.) 
 
 The distiller is not prevented from dealing with the 
 wliiskey in warehouse subject to the paramount rights of 
 the Government. Distillery warehouse receipts given in 
 pledge sustained. (Pattison r. Dale, 196 Fed., 5, reversing 
 186 Fed., 997.) 
 
 Warehouse certificates form no part of revenue system. 
 (T. D. 1494.) 
 
 Pledges of warehouse receipts against whiskey stored la 
 pledger's own warehouse held invalid. (In re Eohrer, 186 
 Fed., 997.) 
 
 The warehouse is theoretically in the joint custody of 
 the storekeeper and proprietor but in fact the control of 
 the storekeeper is complete and practically exclusive. 
 (Taney r. Bank, 187 Fed., 698; T .D. 1959.) 
 
 Spirits in warehouse destroyed by fire, section 3221, page 
 117 (Farrell v. United States, 99 U. S., 221; 25 Int Rev. 
 Rec, S3; Insurance Companies v. Thompson, 5 Otto, 547; 
 United States v. Alexander, 110 U. S., 325.) 
 
 Special bonded warehouses for fruit brandy. (See act 
 of Mar. 3, 1877, p. 251, and act of October 18, 1888, p. 254. ) 
 
 [Act of January 8, 1874 {18 Stat., 2) .] That when from houif "c7n™be 
 death or any other cause there shall be any change in cofttinued in use 
 the person, tirm or company engaged m the business o± have occurred in 
 distilling at any distillery, and the person, firm or com- of°th"''bSSss!' 
 pany that by reason of such change ceases to carry on said 
 business at such distillery has at the time of such change 
 spirits in the distillery warehouse, it shall be lawful for 
 the Commissioner of Internal Revenue, upon the written ^se of 'distii- 
 consent of the surviving principals and sureties interested, ,i"y ' warehouse 
 
 1 1 1 inij_* 1 ibv successors in 
 
 and under such rules and regulations, and upon such certain cases. 
 other conditions as he may prescribe, to permit the sue- p^jtif „ 
 ceeding person, firm, or company to use the distillery 
 warehouse on the premises in the same manner as if it did 
 not contain distilled spirits belonging to the original 
 person, firm or company after setting apart and separat- 
 ing, by a secure and unbroken partition such portion of 
 it as may be necessary for the storage and safe-keeping 
 of the spirits distilled by the original person, firm or com- 
 pany, during the period allowed by law for the removal of 
 distilled spirits from distillery warehouses, or until said 
 spirits are removed, and the tax paid thereon within that 
 
 time. _ ... . . Hen for tax 
 
 Provided, That nothing herein contained shall impair not ^mpafred. 
 or in any way affect the lien existing at the time of such 
 change under section one of the internal revenue act of 
 July twenty, eighteen hundred and sixty-eight, as 
 amended, or other liabilities under any internal revenue 
 law, but the existence of such lien shall be no ground for 
 refusing to approve the bond of the succeeding person, 
 firm or company, anything in section eight of the said 
 
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224 DISTILLED SPIKITS. 
 
 act of July twenty, eighteen hundred and sixty-eightj 
 as amended, to the contrary notwithstanding. - 
 
 The provisions of the act of July 20, 1868, here referred to 
 (15 Stat, 125, 128), and the amendments thereto, are Incor- 
 porated In the Revised Statutes, sections 3251, 3260, 3262. 
 
 ho^e^*" bec™ls Sec. 3272. Whenever in the opinion of the Commis- 
 unsafe. sioner of Internal Revenue any distillery or other ware- 
 
 house is unsafe or unfit for use, or the merchandise 
 therein is for any reason liable to loss or great wastage, 
 he may discontinue such warehouse, and require the 
 merchandise therein to be transferred to such other 
 warehouse as he may designate and within such time 
 as he may prescribe. Such transfer shall be made jinder 
 the supervision of the collector, or of such other offiper 
 as may be designated by the Commissioner, and the 
 expense thereof shall be paid by the owner of the mer- 
 chandise. Whenever the owner of such merchandise fails 
 to make such transfer within the time prescribed, or to 
 pay the just and proper expense of such transfer, as as- 
 certained and determined by the Commissioner, such 
 merchandise may be seized and sold by the collector in 
 the same manner as goods are sold upon distraint for 
 taxes, and the proceeds of such sale shall be applied to 
 the payment of the taxes due thereon and the cost and ex- 
 penses of such sale and removal, and the balance paid 
 over to the owner of such merchandise. 
 
 See also section 57, act of August 27, 1894, page 249. 
 
 havl^chlrgfun- Sec. 3273. Thc store-keeper assigned to a,ny distillery 
 der direction of warehouse shall also have charge of the distillery con- 
 co ector. nccted therewith; and every store-keeper shall have 
 
 charge of the warehouse to which he is assigned, and of 
 such distillery, under the direction of the collector con- 
 trolling the same. 
 
 Storekeepers' books and returns. (Sees. 3301, 3302, pp. 
 259, 260.) 
 
 manrtment^ "ol ®^^' ^^'^'^- EvBry distillery warehouse shall be in the 
 warehBuse. joint custody of the store-keeper and the proprietor 
 
 thereof. It shall be kept securely locked, and shall at no 
 time be unlocked, or opened, or remain open, unless in 
 the presence of such store-keeper, or other person who 
 may be designated to act for him, as provided by law ; ^ 
 and no articles shall be received in or delivered from 
 such warehouse except on an order or permit addressed 
 to the store-keeper and signed by the collector having 
 control of the warehouse. 
 Distiller to Qec. 3276. No fence or wall of a height greater than 
 acceseibie!'^ ' ^^^ five feet shall be erected or maintained around the 
 premises of any distillery, so as to prevent easy and 
 immediate access to such distillery. And every distiller 
 shall furnish to the collector of the district as many 
 keys of the gates and doors of the distillery as may be 
 required ^.thp cpllectpr, from time to time, for any 
 revenue omc^''?f"olK€T''p^i§OTl®Who may be authorized 
 
DISTILLED SPIRITS. 225 
 
 to make survey or inspection of the premises, or of the 
 contents thereof ; and said distillery shall be kept always 
 accessible to any officer or other person having any such 
 key. Every person who violates any of the foregoing Penalty. 
 provisions of this section by negligence or refusal, or 
 otherwise, shall pay a penalty of five hundred dollars. 
 
 Sec. 3276. [Amended iy sec 5, act of March 1, l^'t'S ^^'^°'^^j^°i^'"^- 
 (W /Stat., 3'B7) .] It shall be lawful for any revenue enter an^eram" 
 officer at all times, as well by night as by day, to enter '"" '''"«"«"^s- 
 into any distillery or building or place used for thg busi- 
 ness of distilling, or used in connection therewith for 
 storage or other purposes, and to examine, gauge, meas- 
 ure, and take an account of every still or other vessel or 
 utensil of any kind, and of all low-wines, and of the 
 quantity and gravity of all mash, wort, or beer, and of 
 all yeast, or other compositions for exciting or producing 
 fermentation in any mash or beer, of all spirits and of 
 all materials for making or distilling spirits, which may 
 be in any such distillery or premises, or in possession of 
 the distiller. 
 
 And whenever any internal-revenue officer, or any fice^'^^*p"naity.'''' 
 person called by him to his aid, is hindered, obstructed, 
 or prevented by any distiller, or by any workman, or 
 other person acting for such distiller or in his employ, 
 from entering into any such distillery or building or 
 place as aforesaid; or any such officer is by the distiller 
 or his workmen, or any person in his employ, prevented 
 or hindered from, or opposed, or obstructed, or molested 
 in the performance of his duty under the internal- 
 revenue laws, in any respect, the distiller shall forfeit 
 the sum of not exceeding one thousand dollars. 
 
 And whenever any officer, having demanded admit- Penalty f o r 
 tance into a distillery or distillery premises, and having officer. ^''""'""^ 
 declared his name and office, is not admitted into such 
 distillery or premises by the distiller or other person 
 having charge thereof, it shall be lawful for such officer 
 at all times, as well by night as by day, to break open by 
 force any of the doors or windows, or to break through 
 any of the walls of such distillery or premises necessary 
 to be broken open or through, to enable him to enter the 
 said distillery or premises; and the distiller shall forfeit 
 the sum of not exceeding one thousand dollars. 
 
 All the provisions of sections 3276, 3277, and 3278 are 
 extended and made applicable to all premises whereon 
 vinegar is manufactured, to all manufacturers of vinegar 
 and their workmen or other persons employed by them. 
 (Sec. 3282, p. 231.) 
 
 Obstructing or assaulting officers. (Sec. 65, Criminal 
 Code, p. 674.) 
 
 Officers of Internal revenue may take possession of a dis- 
 tillery and operate it for a short time to ascertain whether 
 it is being operated according to law. (United States v. 
 One Distillery & Fixtures, 193 Fed., 720.) 
 
 Supervision of warehouse by officer on duty thereat. 
 (T. D. 1862.) 
 
 140184°— 20 15 Digitized by Microsoft® 
 
226 DISTILLED SPIRITS. 
 
 rectifier"''to ?ui- ^Ec. 3277. Oil the demand of any internal-revenue 
 n i s h facilities officer, everj distiller or rectifier shall furnish strong, 
 penalty for 'iieg- Safe, and Convenient ladders of sufficient length to enable 
 '''^*- the officer to examine and gauge any vessel or utensils 
 
 in such distillery or premises; and shall, at all times 
 when required, supply all assistance, lights, ladders, tools, 
 staging, or other things necessary for inspecting the 
 premises, stocks, tools, and apparatus belonging to 
 such person, and shall open all doors, and open for exami- 
 nation all boxes, packages, and all casks, barrels, and 
 other Vessels not under the control of the revenue officer 
 in charge, under a penalty of five hundred dollars for 
 every refusal or neglect so to do. 
 
 Section 3152 makes this section applicable to revenue 
 agents (p. 81). 
 
 brSk^up gS#iid ^^•^- ^^'^^- ^* ^^^^^ ^^ lawful for any revenue officer and 
 or walls in or- any pcrson acting in his aid, to break up the ground on 
 er to cKamine. ^^^ ^^^^ ^^ ^ distillery, or premises of a distiller or recti- 
 fier, or any ground adjoining or near to such distillery or 
 premises, or any wall or partition thereof, or belonging 
 thereto, or other place, to search for any pipe, cock, pri- 
 vate conveyance, or utensil; and, upon finding any such 
 pipe or conveyance leading therefrom or thereto, to 
 break up any ground, house, wall, or other place through 
 or into which such pipe or other- conveyance leads, and 
 to break or cut away such pipe or other conveyance, and 
 turn any cock, or to examine whether such pipe or other 
 conveyance conveys or conceals any mash, wort, or beer, 
 or other liquor, which may be used for the distillation of 
 low-wines or spirits, from the sight or view of the officer, 
 so as to prevent or hinder him from taking a true account 
 thereof. 
 put^'uir by" dfs- ^^*^- S279. Every person engaged in distilling or rec- 
 tiiicrs and recti- tifyiug spirits, and every wholesale liquor-dealer, shall 
 Mgie'ot!™*"^ '""^ place and keep conspicuously on the outside of the place 
 of such business a sign, exhibiting in plain and legible 
 letters, not less than three inches in length, painted in 
 oil-colors or gilded, and of a proper and proportionate 
 width, the name or firm of the distiller, rectifier, or 
 wholesale dealer, with the words : " Registered distillery," 
 " rectifier of spirits," or " wholesale liquor dealer," as the 
 case may be. Every person who violates the foregoing 
 provision by negligence or refusal, or otherwise, shall 
 pay a penalty of five hundred dollars. 
 using"fliL signs!^ ^^^ every person, other than a rectifier or wholesale 
 etc. ' liquor-dealer who has paid the special tax, or a distiller 
 
 who has given bond as required by law, who puts up or 
 keeps up the sign required by this section, or any sign 
 indicating that he may lawfully carry on the business of 
 a distiller, rectifier, or wholesale liquor-dealer, shall for- 
 feit and pay one thousand dollars, and shall be imprisoned 
 not less than one month nor more than six months. And 
 every P&ry^jt^^ bffi/f^oidft&'y distillery, rectifying 
 
DISTILLED SPIRITS. 227 
 
 establishment, or wholesale liquor-store, on which no 
 sign is placed and kept, as hereinbefore provided; and 
 every person who knowingly receives at, carries or con- 
 veys any distilled spirits to or from, any such distillery, 
 rectifying establishment, warehouse, or store, or who 
 laiowingly carries and delivers any grain, molasses, or 
 other raw material to any distillery on which such sign 
 is not placed and kept, shall forfeit all horses, carts, drays, 
 wagons, or other vehicle or animal iised in carrying or 
 conveying such property aforesaid, and shall be fined not 
 less than one hundred dollars nor more than one thousand 
 dollars, or be imprisoned not less than one month nor 
 more than six months. 
 
 Repealed by section 17, Title II, National Prohibition 
 Act, page 357, post. 
 
 Insufficiency of Indictment under section 3279. (Terry v. 
 United States, 120 Fed., 483.) 
 
 United States v. Flynn (15 Blatch. (U. S.) 302; Fed. Cas. 
 No. .15124). But this does not apply to one who merely 
 works In puttmg up a building in which an illicit still is set 
 up. (United States v. Burgess, 33 Fed., 833.) 
 
 Wholesale liquor dealer's sign. (T. Ds. 874, 945.) 
 
 Distillers' sign. — Display of sign reading " Distilling 
 
 Company," except by qualified distiller, is illegal, unless fol- 
 lowed by words removing the presumption that the dealer 
 is a distiller. (T. D. 1432.) 
 
 The sign " Practical distiller," used by a wholesale dealer 
 and rectifier who is not an authorized distiller is in violation 
 of section 3279, Kevised Statutes. (T. D. 19331.) 
 
 Sec. 3280. It shall not be lawful for any distiller to com- ^ ^^^^^^l^^^ ™^ 
 mence or to continue the business of distilling, imtil he has business until 
 given the bond required by law, and complied with the pjfed "with! 
 provisions of law relating to the registration and survey 
 of distilleries, and the arrangement and construction of 
 distilleries and the premises connected therewith; nor Distiiiing with- 
 shall it be lawful for any person to engage in the business jectilyi'n/'lstab- 
 of distilling on any premises distant less than six hundred !j.|^ment pioMb- 
 f eet in a direct line from any premises used for rectifying ; 
 nor shall the processes of distillation and rectification both \^ 
 
 be carrie'd on within the distance of six hundred feet in a 
 direct line. 
 
 o n 
 ■with- 
 
 Section 3266, p. 220. 
 Sec. 3281. Every person who carries on the business _j.JaiTyy"^ with- 
 of a distiller without having given bond as required by out giving bond, 
 law, or who engages in or carries on the business of a ^^"^ ' p™'' ^• 
 distiller with intent to defraud the United States of the 
 tax on the spirits distilled by him, or of any part thereof, 
 shall, for every such offense, be fimed not less than one 
 thousand dollars nor more than five thousand dollars, and 
 imprisoned not less than six months nor more than two 
 years. And all distilled spirits or wines, and all stills or 
 other apparatus fit or intended to be used for the dis- 
 tillation or rectification of spirits, or for the compound- 
 ing of liquors, owned by such person, wherever found, 
 and all distilled spirits or wines and personal property 
 found in the distillerE)/p,ife(|i®y j^ff^Tg^^oom, yard, or 
 
228 DISTILLED SPIKITS: 
 
 inclosure connected therewith, and used with or consti- 
 tuting a part of the premises, and all the right, title, and 
 interest of such person in the lot or tract of land on which 
 such distillery is situated, and all right, title, and interest 
 therein of every person, who knowingly has suffered or 
 permitted the business of a distiller to be there carried 
 on, or has connived at the same ; and all personal prop- 
 erty owned by or in possession of any person who has 
 permitted or suffered any building, yard, or inclosure, or 
 any part thereof, to be used for purposes of ingress or 
 egress to or from such distillery, which shall be found 
 in any such building, yard, or inclosure, and all the right, 
 title, and interest of every person in any premises used 
 for ingress or egress to or from such distillery, who has 
 Imowingly suffered or permitted such premises to be used 
 for such ingress or egress, shall be forfeited to the United 
 States. 
 
 Section is constitutional. (United States v. Seventy-one 
 Barrels of Whiskey, Atkinson, claimant, T. D. 1786.) 
 
 nor'^deafer''' etc"'' ^^^- ^^^ ^^'^^ ^f F^hruary 8, 1875 {18 Stat., 307).} 
 carrying or! busi- That any pcrsou who shall carry on the business of a 
 ment''o£'°"i)Klai rectificr, wholesale liquor-dealer, retail liquor-dealer, 
 t^^- wholesale dealer in malt-liquors, retail dealer in malt 
 
 liquors, or manufacturer of stills, without having paid 
 the special tax as required by law, or who shall carry on 
 Distiller carry- the busiuess of a distiller without having given bond as 
 wkhoul ^"iiving required by law, or who shall engage in or carry on the 
 i?rt''enrto^*dc'l '^'•^^i^®®^ ^^ ^ distillcr with intent to defraud the United 
 fraud. States of the tax on the spirits distilled by him, or any 
 
 part thereof, shall, for every such offense, be fined not less 
 pri^oiment'' ""' ^^^^ oi^® huudrcd doUars nor more than five thousand 
 dollars and imprisoned not less than thirty days nor more 
 than two years. 
 Forfeiture. ^qjJ ^U distiUed spirits or wines, and all stills or other 
 
 apparatus, fit or intended to be used for the distillation or 
 rectification of spirits, or for the compounding of liquors, 
 owned by such person, wherever found, and all distilled 
 spirits or wines and personal property found in the distil- 
 lery or rectifying establishment, or in any building, room, 
 yard, or inclosure connected therewith, and used with or 
 constituting a part of the premises; and all the right, title, 
 and interest of such person in the lot or tract of land on 
 which such distillery is situated, and all right, title, and 
 interest therein of every person who knowingly has suf- 
 fered or permitted the business of a distiller to be there 
 carried on, or has connived at the same ; and all personal 
 property owned by or in possession of any person who has 
 permitted or suffered any building, yard, or inclosure, or 
 I any part thereof, to be used for purposes of ingress or 
 egress to or from such distillery which shall be found in 
 ' any such building, yard, or enclosure, and all the right, 
 title, and interest of every person in any premises used 
 for ^^S^^^f)fffih^^^^ififr)tffff^ s^^h distillery, who has 
 knowingly snneretl cv peTmiTOea such premises to be used 
 
DISTILLED SPIRITS. 229 
 
 for such ingress or egress, shall be forfeited to the United 
 States. 
 
 See section 3242, p. 159 ; section 3257, p. 200. 
 
 See references under section 3453, page 594. 
 
 Penalty for omitting to do things required where no 
 punishment is imposed by any othei' section. (Sec. 3456, 
 p. 597.) 
 
 As to rectifiers carrying on business witli intent to de- 
 fraud. (Sec. 3317, p. 271.) 
 
 As to sales made to evade tax. (Sec. 3454, p. 596.) 
 
 Indictment for unlawfully carrying on business of dis- 
 tillers with intent to defraud the United States or having a 
 still vinder their superintendence sustained by proof that 
 distillery was owned by a corporation of which defendants 
 were officers and managers. (Wood v. United States, 204 
 Fed., 55, 122.) 
 
 This section is applicable to a prohibition State. (United 
 States v. Lazzaro, 255 Fed., 237.) 
 
 The provision declaring forfeiture of real estate not un- 
 constitutional. (United States v. Distillery in West Front 
 Street, 11 Int. Rev. Rec, 174 ; Fed Cas. No. 14965. ) 
 
 Stock of W. L. D. not forfeitable by reason of nonpay- 
 ment of special tax. (2000 Bottles of Liquors, 5 Ben., 
 265; Fed. Cas. Ko. 14302.) 
 
 Forfeiture dates iack. — Forfeiture dates back to the time 
 the offiense was committed, and operates, at that time as a 
 statutory transfer of the right of property to the Govern- 
 ment. (United States v. Fifty -six Barrels of Whisky, 1 
 Abb., U. S., 93 ; 4 Int. Rev. Rec, 106 ; Fed Cas. No. 15095 ; 
 United States v. One Water Cask, etc;, 10 Id., 93; Fed 
 Cas. No. 15966 ; Henderson's Distilled Spirits, 14 Wall., 44 ; 
 15 Int. Rev. Rec., 119 ; United States v. McCoy's Distillery, 
 21 Id., 165.) 
 
 The title of the Government to the property infected with 
 fraud vests from the time of its commission and the taint 
 of fraud inheres in it even in the possession of an inno- 
 cent purchaser. (United States v. Eight Hundred Caddiea 
 of Tobacco, 2 Bond., 305; Fed Cas. No. 15036.) 
 
 Where an act is committed by the owner of a distillery 
 by which a forfeiture thereof is incurred under the revenue 
 laws, and subsequently the owner conveys the property to 
 an innocent purchaser without notice of the commission 
 of the act, the property remains still subject to the for- 
 feiture incurred. The conveyance, in such case, passes no 
 title as against the United States. (16 Op. Atty. Gen., 41.) 
 
 Forfeiture does not attach to spirits acquired after the 
 offense. (United States v. One Water Cask, 10 Int. Rev. 
 Rec, 93; Fed Cas. No. 15966.) 
 
 Forfeiture denounced against distillers for carrying on 
 business without having given bond, or with intent to de- 
 fraud, and omission to keep books. (Sec. 3305, p. 261.) 
 
 Extent of forfeiture.— Ail personal property used in the 
 unlawful business or in any other business openly carried 
 on upon the premises is forfeited, even if the owner had no 
 participation in or knowledge of the unlawful acts. 
 
 The forfeiture of lands and buildings does not reach 
 beyond the right, title, and interest of the distiller, or of 
 such other persons as have consented to the carrying on of 
 the business of a distiller upon the premises. (United 
 States V. Stowell, 133 U. S., 1; 36 Int Rev. Rec, 30.) 
 
 An engine is part of a house, and goes with it. (Walker 
 V. Sherman, 20 Wend., 635.) 
 
 As to the boiler, engine, pump, vats, and tanks. (United 
 States V. Stowell, 133 U. S., 1 ; 36 Int. Rev. Bee, 30.) 
 
 Amount of real estate liable to forfeiture. (United 
 
 i;ri26;'Fercrwwj/t?»5i^^'^ '" '"' ^'^- 
 
230 DISTILLED SPIRITS. 
 
 Nothing can be plainer in legal decision than the propo- 
 sition that the olfense therein defined is attached primarily 
 to the distillery and the real and personal property used 
 in connection with the same, without any regard whatso- 
 ever to the personal misconduct or responsibility of the 
 owner, beyond what necessarily arises from the fact that 
 he leased the property to the distiller and suffered it to 
 be used and occupied by the lessee as a distillery. (Dob- 
 bins's Distillery v. United States, 96 U. S., 395; 24 Int. 
 Rev. Rec, 21; United States r. Blair, 3 Int. Rev. Rec, 67; 
 Fed. Cas. 14, 607.) 
 
 A mortgage given by the distiller before the unlawful 
 acts were committed is good as against the United States 
 if the business was not carried on by the morgagee's per- 
 mission or connivance. (United States v. Stowell, 133 
 U. S., 1; 36 Int. Rev. Rec, 30.) 
 
 Forfeiture in case of fraud embraces interest of distiller 
 and of every person who has knowingly permitted the busi- 
 ness of a distiller to be there carried on, or has connived 
 at the same. (T. D. 59.) 
 
 Distillery liable to forfeiture without regard to the culpa- 
 bility of the owner of the property. Mechanics' liens can 
 not be enforced in State courts after seizure by the marshal 
 in forfeiture proceedings. (Heidritter v. Elizabeth Oil- 
 Cloth Co., 6 Fed., 138.) ' 
 
 The principles of law upon this subject are clearly and 
 fully announced in Distillery r. United States (96 U. S., 
 395), and cases cited. (United States v. Two Bay Mules, 
 36 Fed., 84.) 
 
 On a libel against a distillery for illegal operation the 
 Government is only required to establish its case by a pre- 
 ponderance of evidence and not by proof beyond a reason- 
 able doubt. (Pocahontas Distilling Co. v. United States, 
 218 Fed., 782.) 
 
 Preponderance of evidence only required. (Grain Dis- 
 tillery No. 8 V. United States, 204 Fed. 429; T. D. 1837.) 
 
 Operation of forfeitures against innocent persons. 
 United States v. One Barrel Whisky, 4 Int. Rev. Rec, 146; 
 Fed. Cas. No. 15921 ; United States r. One Still, 5 Blatch., 
 403; 5 Int. Rev. Rec, 189; Fed. Cas. No. 15954; United 
 States V. Twenty-one Barrels High Wines, 6 Id., 213 ; Fed. 
 Cas. No. 16567; Distilled Spirits, etc (mortgage), 2 Ben., 
 486 ; Fed. Cas. No. 3923 ; 8 Int. Rev. Rec, 81 ; United States 
 V. Whisky, 11 Id., 109 ; Fed. Cas. No. 16671 ; United States r. 
 Distillery at Spring Valley (leading case), 11 Blatch., 255; 
 18 Int. Rev. Rec, 59; Fed. Cas. No. 14963 ; Dobbins v. United 
 States, 96 U. S., 395 ; 24 Int. Rev. Rec, 21 ; United States v. 
 One Copper StiU (mortgage). Id., 317; 8 Biss., 270; Fed. 
 Cas. No. 15928; Thacher's Distilled Spirits, 103 U. S. (13 
 Otto), 679; &7 Int. Rev. Rec, 144; United States r. Three 
 Copper Stills, 47 Fed., 495; United States i\ 220 Patented 
 Machines (Jacobs), 99 Fed., 495; T. D., 54.) 
 
 As to person allowing ingress or egress over premises to 
 or from a distillery. (Gregory v. United States, 17 Blatch., 
 325; 26 Int. Rev. Rec, 27; Fed. Cas. No. 5803.) 
 
 Principal liable for acts of agent. — The acts of the agent 
 imputed to the principal so far as they work the forfeiture 
 of property used for unlawful purposes. (Bush v. United 
 States, 31 Int. Rev. Rec, 305; 24 Fed., 917.) 
 
 Liability of employer for acts of servant. (United States 
 V. Buchanan, 28 Int. Rev. Rec, 51 ; 9 Fed., 689. ) 
 
 Presumption and burden of proof. (One Hundred and 
 Ninety-nine Barrels of Whisky r. United States, 94 U. S., 
 86; United States r. One StiU, 5 Int. Rev. Rec, 189; Fed. 
 Cas. No. 15954 ; United States v. Mathoit, 1 Sawyer, 142 ; 11 
 Int. Rev. Rec, 158; Fed. Cas. No. 15740.) 
 
 Digitized by Microsoft® 
 
DISTILLED SPIRITS. 231 
 
 The burden of establishing the right of forfeiture Is on the 
 Government. Absence of proof. (United States v. One 
 Engine and Belting, etc., 179 Fed., 698.) 
 
 Intent to defraud. United States v. Simmons, 96 U. S., 
 360; 24 Int. Rev. Rec, 347.) 
 
 Effect of acquittal. — If a person is tried for the same 
 offense for which distillery is seized and acquitted, it is a 
 bar to a suit in rem against the distillery. (Coffey v. 
 United States, 116 U. S., 486; 32 Int. Rev. Rec., 88.) 
 
 Evidence. (Quantity of distilled spirits, 9 Int. Rev-. Rec, 
 9; Fed. Cas. No. 11444; United States v. Blaisdell, Id., 82; 
 Fed. Cas.- No. 14608 ; United States v. Staton, 25 Id., 10 ; 
 Fed. Cas. No. 16382 ; United States v. Dobbs, 15 Id., 9 ; Fed. 
 Cas. No. 14972.) 
 
 The abandonment by the Government of an action for 
 forfeiture does not affect its lien on the seized property for 
 unpaid taxes. C^lkan v. Bean, 8 Biss., 83 ; 23 Int. Rev. 
 Rec, 351; Fed. Cas. No. 202.) 
 
 Exposition of the law relative to distilleries. (United 
 States V. One Distillery and Fixtures, Foster, claimant, 193 
 Fed., 720.) 
 
 Property liable to forfeiture notwithstanding convic- 
 tion of distiller. (United States i'. One Distillery and Fix- 
 tures, Foster, claimant, 193 Fed., 720; United States v. 71 
 Bbls. Whiskey, Atkinson, claimant; T. D. 1786.) 
 
 Stockholders, innocent or guilty, suffer alike from the 
 forfeiture of corporate property. (Wood i'. United States, 
 204 Fed., 55; T. D. 1836.) 
 
 Sec. 9. [Act of .March 1, 1879 {20 Stat., 327) .] Where sonf whue^per: 
 any marshal or deputy marshal of the United States t-iiefy.'"''''* '''" 
 within the district for which he shall be appointed shall 
 find any person or persons in the act of operating an 
 illicit distillery, it shall be lawful for such marshal or 
 deputy marshal to arrest such person or persons, and take 
 him or them forthwith before some judicial officer named 
 in section one thousand and fourteen of the Revised Stat- 
 utes, who may reside in the county of arrest or if none, 
 in that nearest to the place of arrest, to be dealt 
 with according to the provisions of sections ten hundred 
 and fourteen, ten hundred and fifteen, ten hundred and 
 sixteen of the said Revised Statutes. 
 
 Section 1014, Appendix, page 642. 
 
 Warrants of arrest for violations of internal-revenue 
 laws, page 659. (XII Comp. Dec, 803; IV Id., 338, 340.) 
 
 There is no repugnance between thiafcsection and section 
 19, act of May 28, 1896, page 659. (16 Comp. Dec, 669.) 
 
 Sec 3282. YAmended ly sec. 5, act of March 1, ^^"/P^^Mash.^wort, 
 {m Stat., 327). '\ No mash, wort, or wash, fit for dis- 
 tillation or for the production of spirits or alcohol, shall 
 be made or fermented in any building or on any premises 
 other than a distillery duly authorized according to law ; 
 and no mash, wort, or wash so made and fermented shall 
 be sold or removed from any distillery before being dis- 
 tilled ; and no person, other than an authorized distiller, 
 shall, by distillation, or by any other process, separate 
 the alcoholic spirits from any fermented mash, wort, or 
 wash ; and no person shall use spirits or alcohol, -^ 
 in manufacturing vinegar or airy other article, or m 
 any process of radirMm^ imMWm^n^l^ss the spir- 
 
232 DISTILLED SPIRITS. 
 
 its or alcohol so used shall have been produced in an 
 Penalty. authorized distillery and the tax thereon paid. Every 
 person who violates any provision of this section shall 
 be lined for each offense not less than five hundred dol- 
 lars nor more than five thousand dollars, and be im- 
 prisoned not less than six montlis nor more than two 
 years : Pro vided further. That nothing in this section 
 shall be construed to apply to fermented liquors, or to 
 fermented liquids used for the manufacture of vinegar 
 exclusively. * * * 
 
 But no worm, goose-neck, pipe, conductor, or con- 
 trivance of any description whatsoever whereby vapor 
 might in any manner be conveyed away and converted 
 into distilled spirits, shall be used or employed or be 
 fastened to or connected with any vaporizing apparatus 
 used for the manufacturer of vinegar; nor shall any 
 worm be permitted on or near the premises where such 
 vaporizing process is carried on. 
 toiy "nor to ''be "^^^ shall any vinegar factory, for the manufacture of 
 ■within 600 leet vinegar as aforesaid, be permitted within six hundred 
 ery. ^^^^ ^^ ^^^ distillery or rectifying house. But it shall 
 be lawful for manufacturers of vinegar to separate, by a 
 vaporizing process, the alcoholic property from the mash 
 produced by them, and condense the same by introduc- 
 ing it into the water or other liquid used in making 
 vinegar. 
 ovey"2^*^per Tent ^o pcrsou, however, shall remove, or cause to be re- 
 ef alcohol. moved, from any vinegar factory or place where vinegar 
 is made, any vinegar or other fluid or material contain^ 
 ing a greater proportion than two per centum of proof 
 spirits. Any violation of this provision shall incur a 
 forfeiture of the vinegar, fluid, or material containing 
 such proof spirits, and shall subject the person or persons 
 guilty of removing the same to the punishment provided 
 for any violation of this section. 
 327^?! '^ 3'278^"p- ^"^^ ^11 the provisions of sections thirty -two hundred 
 piicake. and seventy-six, thirty-two hundred and seventy-seven, 
 and thirty-two hundred and seventy-eight of the Revised 
 Statutes of the United States are hereby extended and 
 made applicable*" to all premises whereon vinegar is 
 manufactured, to all manufacturers of vinegar and their 
 workmen or other persons emploved by them. 
 torierrefor; _{Act of JitAxe IJf, 1879 (21 Stat., 20).'] That any 
 March 1, 1879. yinegar factory for the manufacture of vinegar, estab- 
 lished and operated as a vinegar factory prior to March 
 first, eighteen hundred and seventy-nine, may be oper- 
 ated for the manufacture of vinegar by the use of alco- 
 holic vapor within such distance less than six hundred 
 feet of any distillery or rectifying house iinder such 
 regulations as the Commissioner of Internal Revenue 
 may prescribe with the approval of the Secretary of 
 the Treasury. 
 
 ^f'lW^'fitee'fif $^jWft9ii2Sd?Mfl^e employment of alcollolic 
 vapor. "(2o InC Kev. Rec, 157 ; Regulations No. 7 I'e- 
 
DISTILLED SPIKITS. 233 
 
 vised, p. 226; United States v. l^russing, 2 Biss., 344; Fed. 
 Cas. No. 16095; United States v. Distillery, 23 Int. Rev. 
 Rec, 147; iTed. Cas. No. 14960.) 
 
 Re<!tifiers making a wine inasli. (T. D. 1437, Cir. No. 
 731.) 
 
 On and after September 1, 1909, rectifiers proliibited 
 from making a so-called wine niasli and using the product 
 tliereof in tlie production of compound liquors. — Provi- 
 sions of Internal Revenue Circular 731 (suspended by 
 Mimeograph Circular 599) reestablished. (T. D. 1528.) 
 
 Postponement until October 1, 1909, of operations of regu- 
 lations prohibiting rectifiers from making a so-called wine 
 mash and using the product thereof in the production of 
 compound liquors — Modification of T. D. 1528. (T. D. 
 1537.) 
 
 Wine mash — Disposition of product on hand — Enforce- 
 ment of Circular No. 731. (T. D. 1.551.) 
 
 Defining the formula which may be used in the manu- 
 facture of a mash not fit for distillation within the mean- 
 ing of section 3282. (T. D. 1593.) 
 
 Production of so-called "pomace wine." (T. D. 1645; 
 T. D. 1949.) 
 
 Raisin wine. (T. D. 2012.) Cider to which .sugar is 
 added. (T. D. 2675.) 
 
 Production of mash by others than distillers. (T. D. 
 1712.) 
 
 Sec. 3283. No malt, corn, grain, or other material shall eiMnins"'\T- 
 be mashed, nor any mash, wort, or beer brewed or m^tls^ oT^latwda^' a°d 
 nor any still used by a distiller, at any time between the i a. m. of Mon- 
 hour 0"f eleven in the afternoon of any Saturday and the '^^' 
 hour of one in the forenoon of the next succeeding Mon- 
 day J and every person who violates the provisions of ^^^^y- 
 this section shall be liable to a penalty of one thousand 
 dollars. 
 
 Relative to use of yeast rake on Sunday. (29 Int. Rev. 
 Rec, 137.) 
 
 Relative to the use of pumps on Sunday. (30 Int. Rev. 
 Rec, 45.) 
 
 " Fermenting period of 48- hours authorized. (T. -D. 
 2636.) 
 
 Sec; 602. [Act of Ftlruary U, 1919 {J fi Stat., 1057).'] 
 Under such regulations as the Commissioner, with the 
 approval of the Secretary, may prescribe, the manufac- 
 ture, warehousing, withdrawal, and shipment, under 
 the provisions of existing law, of ethyl alcohol for other 
 than (1) beverage- purposes or (2) use in the manufac- 
 ture or production of any article used or intended for 
 use as a beverage, and denatured alcohol, may be ex- ^y^^f™?*;,'';! "' 
 empted from the provisions of section 3283 of the Re- 
 vised Statutes. 
 
 Sec. 3284. Every distiller or person employed m any ^j/^-e ,^™*,g 
 distillery who, in the absence of the storekeeper, or per- spirits ^^in ^^a. 
 son designated to act as storekeeper, uses, or causes or deeper. 
 permits to be used, any material for the purpose of mak- 
 ing mash, wort, or beer, or for the production of spirits, 
 or removes any spirit, shall forfeit and pay double the ^™^"y- 
 amount of taxes on the spirits so produced, distilled, or 
 removed, and in addition thereto be liable to a penalty ot 
 on? thousand AowA^^'^^^by IVffcrosoft® 
 
 of 
 
■234 DISTILLED SPIRITS. 
 
 meSTub/'" Sec. 3285. lAmended hy sec. 3, act of May 28, 1880 
 ■ {m Stat, HB) and act of Jvme %%, 1910 {36 Stat., S90).-] 
 Every fermenting tub shall be emptied at or before the 
 end of the fermenting period ; no fermenting tub in . a 
 sweet-mash distillery shall be filled oftener than once in 
 seventy-two hours, nor in a sour-mash distillery oftener 
 than once in ninety-six hours, nor in a rum distillery 
 oftener than once in one hundred and forty^four hours, 
 nor in a distillery where the filtration-aeration process is 
 employed, that is, where the mash after it leaves the 
 mash tub is passed through a filtering machine, before 
 
 tio^'"proocssr'^ it is run into the fermenting tub, and only the filtered 
 liquor passes into the fermenting tub, and the approval 
 of the Commissioner of Internal Eevenue being secured, 
 oftener than once in twenty-four hours. The provisions 
 hereof relating to filtration- aeration process shall apply 
 only to sweet-mash distilleries. 
 
 Circular No. 739 (T. D. 1641) relative to filtration- 
 aeration process. 
 
 ethyrS^cohoi. °' Sec. %()2.\Act of February U, 1919 {40 Stat., 1057).] 
 The Commissioner, with the. approval of the Secretary, 
 may by regulations exempt distillers of ethyl alcohol, 
 for use in the production of munitions of war, or for 
 other nonbeverage purposes, from so much of the 
 provisions of section * * 3285, * * , and Acts 
 amendatory thereof, '■' ''' as, in his judginent, may 
 be expedient: Provided, That the bond prescribed in 
 section 3260 of the Revised Statutes shall, in the cases 
 herein provided, be in such sum and contain such further 
 conditions as the Commissioner may require. 
 waFer^'^'dlansiSg Sec. 3286. [Amended ly see. 6, act of March 1, 1879 
 worm' tubs, etc. {20 Stat., 327).'] Whenever any officer requires the watei' 
 contained in any worm "tub in a distillery, at any time 
 when the still is not at work, to be drawn off, and the 
 tub and worm cleansed, the water shall forthwith be 
 drawn off, and the tub and worm cleansed by the dis- 
 tiller, or his workmen, accordingly ; and the water shall 
 be kept and continued out of such worm, tub for the 
 period of two hours, or until the officer has finished his 
 examination thereof. For any refusal or neglect to 
 comply with any provision of this section, the distiller 
 Penalty. s\isl\ forfeit the sum of not exceeding one thousand 
 
 dollars ; and it shall be lawful for the officer to draw off 
 such water, or any portion of it, and to keep the same 
 dravv-n off for so long a time as he shall think necessary. 
 
 Section 3152, page 81, gives revenue agents the authority 
 here conferred on officers. 
 
 sniritTT'warV Sec. 3287. [Amended ly sec. 5, act of March 1, 1879 
 house and gau(j- {20 Stat. 327) ; sec. 6, act of May 28, 1880 {21 Stat., 11^), 
 ln| same. '*"""" ^ct of Felvuary 21, 1899 {30 Stat., 843) , ami act of March 
 2, 1911 {36 Stat., lOU.).] All distilled spirits shall be 
 drawn from the receiving cisterns into casks or packages, 
 each of notJ^^gg^g^BJtjfcJ^lSWfen gallons wine measure, 
 and shall thereupon be gauged, proved, and marked by an 
 
DISTILLED SPIRITS. 235 
 
 internal-revenue ganger, who shall cut on the cask or pack- 
 age containing such spirits, in a manner to be prescribed 
 by the Commissiolier of Internal Eevenue, the quantity 
 in wine gallons and in proof gallons of the contents of 
 such casks or packages, and the particular name of such 
 distilled spirits as known to the trade, that is to say, 
 high wines, alcohol, or spirits, as the case may be, shall 
 be marked or branded on the head of such cask or 
 package in letters of not less than one inch in length; 
 and the spirits shall be immediately removed into the 
 distillery warehouse, and the gauger shall, in the presence 
 of the storekeeper of the warehouse, place upon the head 
 of the cask or package an engraved stamp, which shall 
 be signed by the collector of the district and the store- 
 keeper and gauger; and shall have written thereon the 
 number of proof gallons contained therein, the name of 
 the distiller, the date of the receipt in the warehouse, and 
 the serial number of each cask or package, in progressive 
 order, as the same are received from the distillery. Such 
 serial number for ev[e]ry distillery shall be in a regular 
 sequence of the serial number thereof, beginning with 
 number one (No. 1) with the first cask or package de- 
 j)osited therein after July twentieth, eighteen hundred 
 and sixty-eight, and no two or more casks or packages 
 warehoused at the same distillery shall be marked with 
 the same number. The said stamp shall be as follows: 
 
 " Distillery-wareliouso stamp No. — - Issued by 
 
 -, collector, district, State of , distillery 
 
 warehouse of , 18 — , Cask No. — ; contents 
 
 gallons proof-spirits. 
 
 Act of B'eb. 
 
 " United States Storekeeper. 
 
 "Attest: , 
 
 United States Gauger." 
 
 Provided, however. That upon the application of the 2i,"i''899"' 
 distiller, and under such regulations as the Conmiissioner 
 of Internal Kevenue, with the approval of the Secretary 
 of the Treasury, may prescribe, distilled spirits may be 
 drawn into wooden packages, each containing two or ^^P^^^ages^^ con- 
 more metallic cans, which cans shall have each a capacity more metallic 
 of not less than five gallons, wine measure, such packages '^^™' 
 to be filled and used only for exportation from the United 
 States. And there shall be charged for eacli of said pack- 
 ages or cases for the expense of providing and affixing 
 stamps, five cents instead of ten cents as now required by of ^S'"cente 'Tor 
 
 law. stamps. 
 
 Provided fv/rther, That alcohol or high-proof spirits 1911. ° '"^' ^' 
 withdrawn free of tax for the use of the United States, 
 as authorized by section thirty-four hundred and sixty- ^^^^^^^^ ^ ^ 
 four, Revised Statutes, may be drawn off for transfer by aicohoi by pipes. 
 pipes direct from the receiving cisterns in the cistern 
 room of any distillery to closed metal storage tanks situ- 
 ated in the distillery bonded warehouse and transferred 
 from such storage tanks to tanks or tank cars for ship- 
 ment, upon the execi£%TJz©& g|jl«te;feAJSJS¥SPcl under such 
 
236 DISTILLED SPIRITS. 
 
 regulations as the Secretary of the Treasury may 
 prescribe. 
 
 Regulations concerning tlie exportation of distilled spirits 
 in inclosed metallic cans. (T. D. 20837; Reg. No. 29, re- 
 vised; T. D. 905.) 
 
 Metal barrels or drums for high proof spirits permissible. 
 (Cir. No. 678; T. D. 996.) 
 
 The deposit of the spirits in the warehouse was solely for 
 the benefit of the distiller. The Government assumed no 
 responsibility to him for their safe-keeping. (United States 
 V. Witten, 143 U. S., 76; 38 Int. Rev. Rec, 46.) 
 
 Injunction to restrain the enforcement of an order requir- 
 ing product known to the trade as " Spirits " to be branded 
 as "Alcohol." (Union Distilling Co. v. Bettman, 181 Fed., 
 419.) 
 
 Regulations for marking and branding distilled spirits. 
 (Cir. No. 723; T. D. 1352; Cir. No. 726; T. D. 1375; Cir. 
 No. 728 ; T. D. 1390 ; Mim. Cir. No. 573, T. D. 1404 ; Cir. No. 
 737 ; T. D. 1620 ; and T. D. 1624 ; modified June 13, 1910 ; 
 Cir. No. 738; T. D. 1638; T. D. 2207; T. D. 2548; T. D. 
 2560.) 
 
 Regulations governing storage. (T. D. 1688; Cir. No. 19, 
 Int. Rev. No. 741.) 
 
 Under-proofing and undei'-gauging distilled spirits. (T. D. 
 2240.) 
 
 Allowance for soakage. (T. D. 2515.) 
 
 Marking packages containing spirits produced from mo- 
 lasses. (T. D. 2154.) 
 
 Metal packages for containing spirits for export not 
 required to have wooden surfaces for receiving marks, 
 brands, and stamps, where certain conditions are complied 
 with. (T. D. 2822.) 
 
 Section 3287 makes the characteristics of the marking to 
 be placed on the cask or package a matter of administrative 
 discretion with the Commissioner, subject to the approval 
 of the Secretary of the Treasury. Effect of restraining 
 order. (27 Op. Atty. Gen., 43.) 
 
 Suit to enjoin collector and internal-revenue gangers from 
 marking rectified spirits " imitation whisky," acting under 
 instructions in Internal-Revenue Circular 723 of May 5, 
 1908, issued in conformity with the direction of the Presi- 
 dent to the Secretary of Agriculture for the enforcement 
 of the pure-food act. — Decision of Judge Thompson sus- 
 tained the Government. — Application for rehearing denied. 
 (Union Distilling Co. v. Bettman, 181 Fed., 419; T. D. 
 1410.) 
 
 Suit to enjoin collector and internal-revenue gaugers from 
 marking rectified spirits " imitation whisky." — Decision of 
 Judge Humphrey denying application for preliminary in- 
 junction. (Woolner v. Rennick, 170 Fed., 662; T. D. 1425.) 
 See also T. D. 1427, Western Distilleries v. Muenter. 
 
 Marking of distilled spirits. (27 Op. Atty. Gen., 47.) 
 
 Relative to marking distilled spirits produced from mo- 
 lasses at distilleries and rectifying houses pending litigation 
 to test the decision of President Taft, of December 27, 1909, 
 as to " What is whisky." (Cir. No. 740; T. D. 1647.) 
 
 Regulations under the last proviso of section 3287, rela- 
 tive to the storage, removal and shipment in tanks and 
 tank cars of alcohol free of tax for use of the United 
 States. (Cir. No. 741 ; T. D. 1688.) 
 
 Canadian Club whisky need not be labeled a blend of 
 whiskies under section 8 of the food and drugs act of June 
 30, 1906 (34 Stat, 768), (28 Op Atty. Gen., 455.) 
 
 lines', etc. ' That at re^49!^^^(i'i)^t4fi€f$^jpK)ducing alcohol, or other 
 
raSTILLED SPIKITS. 237 
 
 high-proof spirits, packages may be filled with such 
 spirits reduced to not less than one hundred proof from 
 the receiving cisterns and tax paid without being entered 
 into bonded warehouse. Such spirits may be also trans- 
 ferred from the receiving cisterns at such distilleries, by 
 means of pipe lines, direct to storage tanks in the bondeft 
 warehouse and may be warehoused in such storage tanks. 
 Such spirits may be also transferred in tanks or tank 
 cars to general bonded warehouses for storage therein, 
 either in storage tanks in such warehouses or in the tanks 
 in which they were transferred. Such spirits may also 
 be transferred from receiving cisterns or warehouse stor- 
 age tanks to barrels, drums, tanks, tank cars, or other 
 approved containers, and may be transported in such con- 
 tainers for exportation or other lawful purposes. The 
 Commissioner, with the approval of the Secretary, is 
 hereby empowered to prescribe all necessary regulations 
 relating to the drawing off, transferring, gauging, stor- 
 ing, and transporting of such spirits; the records to be 
 kept and returns to be made ; the size and kind of pack- 
 ages and tanks to be used; the marking, branding, num- 
 bering, and stamping of such packages and tanks; the 
 kinds of stamps, if any, to be used; and the time and 
 manner of paying the tax ; the kind of bond and the penal 
 sum of same. The tax prescribed by law must be paid 
 before such spirits are removed from the distillery 
 premises, or from general bonded warehouse in the case 
 of spirits transferred thereto, except as otherwise pro- 
 vided by law. 
 
 Under such regulations as the Commissioner, with the withdrawal 
 approval of the Secretary, may prescribe, distilled spirits cisterns. ""^'^""^ 
 may hereafter be drawn from receiving cisterns and de- 
 posited in distillery warehouses without having affixed to 
 the packages containing the same, distillery warehouse 
 stamps, and such packages, when so deposited in ware- 
 house, may be withdrawn therefrom on the original gauge 
 where the same have remained in such warehouse for a 
 period not exceeding thirty days from the date of deposit. 
 
 Receiving cisterns in distillery, sec. 3267, R. S., amended. 
 
 Distillery warehouse stamps, sec. 3287, R. S.,' amended. 
 
 Distilled spirits in warehouse; withdrawal. (T. D. 
 2562.) 
 
 gee sec. 606, act Febi-uary 24, 1919, page 269, as to dis- 
 continuance of distillery warehouse stamps. 
 
 Storage tanks in general bonded warehouse. (T. D. 
 2848.) 
 
 Storage in tanks in distillery warehouses and with- 
 drawal. . (T. D. 2827.) 
 
 Regulations as to removal of tax-paid alcohol in tanks 
 or tank cars to premises of rectifiers. (T. D. 2790.) 
 
 Provisions of Circular 740 not abrogated by Regulations 
 No. 7, revised July 10, 1914. (T. D. 2154.) 
 
 Tax-paid spir- 
 
 Sec. 3288. No distilled spirits on which the tax has its not to re- 
 been paid shall be stored or allowed to remam on any i„y premises. 
 
 Digitized by Microsoft® 
 
238 DISTILLED SPIRITS. 
 
 distillery premises, under the penalty of a forfeiture of 
 all spirits so found. 
 
 Delay in affixing stamps indicating payment of tax on 
 spirits no bar to forfeiture^ (Letter to Collector Powers, 
 May 22, 1896; 42 Int. Rev. Rec, 241.) 
 
 „nJ»°mn«rL.k' ^ Sec. 3289. All distillled spirits found in any cask or 
 ages. package containing live gallons or more, without having 
 
 thereon each mark and stamp required therefor by law, 
 
 shall be forfeited to the United States. 
 
 Sections 3299, page 258, and 3323, page 276. 
 
 Rectified spirits included in term " distilled spirits." 
 (Boyd V. United States, 14 Blatch., 317; Fed. Cas. No. 
 1749.) 
 
 See on this section United States v. One Rectifying Es- 
 tablishment (11 Int. Rev. Rec., 45) ; Fed. Cas. No. 15952; 
 United States v. 32 Barrels Distilled Spirits (5 Fed., 188) ; 
 3 Packages Distilled Spirits, 14 Fed., 569 ; United States v. 
 14 Packages, 66 Fed., 984; United States v. One Package, 
 88 Fed., 856.) 
 
 Whenever an examination of a distiller's original package 
 sliows an excess of one proof gallon or upward over con- 
 tents, as shown by marks, brands, and stamps, it should be 
 detained, gauged by two gaugers, where practicable, and 
 if excess is found by both to be 1 proof gallon or upward, 
 the taxable excess should be estimated by the collector and 
 reported for assessment against the distiller. (Regula- 
 tions, No. 7, p. 188, 25 Int. Rev. Rec, 157.) 
 
 AVhere the tax on an excess is received as above, in case 
 of spirits produced in another district, the amount thus 
 collected will be transmitted, by certificate of deposit or 
 otherwise, to the collector of the district in which the 
 spirits were produced. The collector receiving the tax so 
 transmitted will report the same on Form 23. (Regula- 
 tions No. 7, p. 189.) 
 
 WlifU coloring matter is introduced into packages of 
 whisky, double stamped, it is held subject to forfeiture. 
 (T. D. 800.) 
 
 Burden of proof : Where spirits are found in packages of 
 more than 5 gallons capacity without stamf)s, burden of 
 proof is on the claimant to show that they are tax-paid. 
 (United States v. Sykes, 58 Fed., 1000.) 
 
 Information for forfeiture under section 3289 held bad 
 on demurrer. (United States v. Three Packages of Dis- 
 tilled Spirits, 152 Fed., 580.) 
 
 Forfeiture is incurred if the marks and stamps are not 
 such as prescribed, irrespective of the question of fraud. 
 (United States i\ Seven Barrels of Whisky, Moise & Co., 
 131 Fed., 806.) ^ 
 
 Stamps without date forfeit spirits. (United States v. 
 9 Packages, and United States v. 64 Packages, 51 Fed., 191.) 
 
 Proceedings may be had under section 3289 without re- 
 gard to the guilt of any particular person. (United States 
 V. 3 Copper Stills, 47 Fed., 495.) 
 
 The law provides a complete system of marks and brands 
 on spirits in order to enable them to be traced from the 
 distillery or rectifying establishment into the hands of the 
 consumer or retail dealer, and to prevent fraud on the reve- 
 nue. (United States v. Bardenheier, 49 Fed., 846; United 
 States V. Three Pkgs. Dist. Spirits (Graf & Co., claimants), 
 125 Fed., 52.) 
 
 Tampering with spirits in stamped packages. (T. D. 
 997.) 
 
 Coveiing.starnps RKphibite(L^(T. D. 772.) 
 
 ohs^im^mmWmmS® (T. d. 1259; t. d. 1274.) 
 
 Substitution of spirits. (T. D. 2007.) 
 
DISTILLED SPIRITS. 239 
 
 Sec. 3290. Whenever any ganger employs any owner, ^^^f^^%- Af ' 
 agent, or superintendent of any distillery or distillery etc^''^ o'' u fc 
 warehouse, or any person in the ser^'ice of such owner, form*^" his' "lu- 
 agent, or superintendent, or any rectifier or wholesale *'■=" ■ p«^naity. 
 liquor-dealer, or any person in the service of such recti- 
 fier or wholesale liquor-dealer, to use his brands, or to 
 discharge any of the duties imposed upon him by law, 
 he shall, for each offense so committed, x:>ay a fine not ex- 
 ceeding one thousand dollars, in the discretion of the 
 court. 
 
 Gauger can not delegate his authority to any person. No 
 substitution authorized. (United States v. Bittinger, 21 Int. 
 Rev. Rec, 342; Fed. Cas. No. 14599.) 
 
 Regulations in regard to unofficial gauging. (No. 2, re- 
 vised, p. 92; T. D. 1862.) 
 
 Attachment of stamps by the successor of a gauging offi- 
 cer who has gauged spirits without stamping the package 
 and completing and marking. (Regulations No. 7, p. 168.) 
 Internal-revenue officers prohibited from acting as agents 
 of distillers. (Letter to Collector Herring, Aug. 17, 1896; 
 42 Int. Rev. Rec, 354.) 
 
 The furnishing blanlt Forms 59 for private purposes is 
 unlawful. (T. D. 513.) 
 
 Sec. 3291. Every gauger shall, under such regulations oauger-s re- 
 as may be prescribed by the Commissioner of Internal *"'''^- 
 Revenue, make a daily return to the collector of his dis- 
 trict, giving a true account, in detail, of all articles 
 gauged and proved or inspected by him, and for whom, 
 and the number and kind of stamps used by him. 
 
 Ganger's compensation, etc. (Sec. 3157, p. 89.) 
 Sec. 3292. Every gauger who makes any false or fraud- Fraudulent in- 
 ulent inspection, gauging, or proof shall pay a penalty ^^P|^*'etc. ; *pct- 
 of one thousand dollars, and be fined not less than five aity.. 
 hundred dollars nor more than five thousand dollars, and 
 imprisoned not less than three months nor more than 
 three years. 
 
 EK TRIES FOR DEPOSIT AND WAREHOUSING BONDS COVERING 
 SPIRITS IN DISTILLERY WAREHOUSES AND SPECIAL BONDED 
 WAREHOUSES. 
 
 Sec. 3293. [zimeiuled by sertion 4, act of May £8, 1880 Entry, etc., oi 
 {m Stat., IJiB), and sec. ^9, act of August 27, 1894 (^<S ^pJ"*' disSfill? 
 Stat., 509) .] The distiller of all spirits removed as afore- warehouse. 
 said to the distillery warehouse shall, on the first day of 
 each month, or within five days thereafter, enter the same 
 for deposit in such warehouse, under such regulations 
 as the Commissioner of Internal Revenue may prescribe. 
 Said entry shall be in triplicate, and shall contain the 
 name of the person making the entry, the designation of 
 the warehouse in which the deposit is made, and the date 
 thereof, and shall be in the following form : 
 
 ENTBY FOE DEPOSIT IN DISTILLEET WAREHOUSE. 
 
 Entry of distilled spirits deposited by , in dis- 
 tillery warehouse , in the district, State of , 
 
 S"m^i ^5^^o".th ^^^f^^mei%Mi5rof8n€ ' "°"' 
 
240 DISTILLED SPIEITS. 
 
 And the entry shall specify the kind of spirits, the 
 ■whole number or packages, the marks and serial numbers 
 thereon, the number of gauge or wine gallons, proof-garl- 
 lons, and taxable gallons, and the amount of tax on the 
 spirits contained in them; all of which shall be verified 
 by the oath of the distiller of the same attached to the 
 entry. The said distiller sh^U at the time of making said 
 Bond required, entry givc his boud in duplicate, with one Or more sure- 
 ties, satisfactory to the collector of the district, condi- 
 tioned that the principal named in said bond shall pay 
 the tax on the spirits as specified in the entry, or cause 
 Spirits to be the Same to be paid, before removal from said distillery 
 brad''^''w iVh^i"!! ^^"arehouse, and within eight years from the date of said 
 eight years. entry ; and the penal sum of such bond shall not be less 
 than the amount of the tax on such distilled spirits. One 
 of said entries shall be retained in the office of the col- 
 lector of the district, one sent to the storekeeper in charge 
 of the warehouse, to be retained and filed in the ware- 
 house, and one sent with duplicate of the bond to the 
 Commissioner of Internal Revenue, to be filed in his 
 office. 
 New bond in A new bond shall be required in case of the death, in- 
 case of death, goiygjigy^ qj. removal of either of the sureties, and may be 
 required in any other contingency affecting its validity 
 or impairing its efficiency, at the discretion of the Com- 
 missioner of Internal Revenue. And in case the distiller 
 fails or refuses to give the bond hereinbefore required, 
 or to renew the same, or neglects to immediately with- 
 draw the spirits and pay the tax thereon, or if he neglects 
 to withdraw any bonded spirits and pay the tax thereon 
 before the expiration of the time limited in the bond, the 
 collector shall proceed to collect the tax by distraint, 
 issuing his warrant of distraint for the amount of tax 
 found to be due, as ascertained by him from the report 
 of the ganger if no bond was given, or from the terms of 
 the bond if a bond was given. But this provision shall 
 not exclude any other remedy or proceeding provided 
 by law. 
 
 (T. D. 21735.) 
 Excessive loss If i* shall appear at any time that there has been a loss 
 warchras'i*^ '" ^f distiUed Spirits from any cask or other package here- 
 after deposited in a distillery warehouse, other than the 
 loss provided for in section thirty -two hundred and 
 twenty-one of the Revised Statutes of the United States, 
 as amended, which, in the opinion of the Commissioner 
 of Internal Revenue, is excessive, he may instruct the 
 collector of the district in which the loss has occurred to 
 require the withdrawal from warehouse of such distilled 
 spirits, and to collect the tax accrued upon the original 
 quantity of distilled spirits entered into the warehouse in 
 such cask or package, notwithstanding that the time 
 specified iBi§Me^l\Mm'^o^ *^® withdrawal of the 
 
DISTILLED SPIRITS. 241 
 
 spirits entered into warehouse in such cask or package 
 has not expired. If the said tax is not paid on demand, 
 the collector shall report the amount due upon his next 
 monthly list, and it shall be assessed and collected as 
 other taxes are assessed and collected. 
 
 That the tax on all distilled spirits hereafter entered for ^^^ax to be paid 
 deposit in distillery warehouses shall be due and payable years ot date of 
 before and at the time the same are withdrawn therefrom ^'^^^' 
 and within eight years from the date of the entry for 
 deposit therein; and warehousing bonds hereafter taken 
 under the provisions of section thirty-two hundred and 
 ninety -three of the Revised Statutes of the United States 
 shall be conditioned for the payment of the tax on the 
 spirits as specified in the entry before removal from the 
 distillery warehouse, and within eight years from the 
 date of said bonds. 
 
 Circular No. 625, revised .(See T. D. 2409; T. D. 2435; 
 T. D. 2472, superseded by T. D. 2508.) 
 
 A like provision as to spirits deposited in general bonded 
 warehouses or in special bonded warehouses. (S^c 58, act ot 
 August 27, 1894, p. 249.) 
 
 Collectors will, unless otherwise directed, where the dis- 
 tiller neglects to pay the tax on his bonded spirits within the 
 time fixed by law, proceed to collect the tax due • as above 
 provided, instead of reporting the same on lists. Form 23. 
 
 In case of distraint, the collector will first distrain upon 
 the spirit as to which the tax is due and is a first lieri (see. 
 3251), and if further distraint becomes necessary, upon the 
 distillery property, which is also subject to the lien imposed 
 by section 3251. (Circular letter to collectors, Nov. 4, 1899; 
 T. D. 21735.) 
 
 Warehouse certificates for bonded spirits. — As warehouse 
 certificates for bonded spirits form no part of our revenue 
 system, the alfixing of United States gangers' names thereto 
 can not be permitted under any circumstances. (T. D. 1494.) 
 
 Warehouse receipts or certificates for bonded spirits. (Cir, 
 No. 25, Int. Rev. No. 736; T. p. 1503.) 
 
 Additional warehousing bonds. (T. D. 2578.) 
 
 Kequirement as to penal sum of bond. (T. D. 2644.) 
 
 Spirits stolen in warehouse after seizure. Bond liable. 
 (United States Fidelity & Guaranty Co., Baltimore, Md., v. 
 United States, 220 Fed., 592 ; T. D. 2103.) 
 
 Warehouse receipts callin'g for whisky stored in distillery 
 warehouse represent the property itself and their transfer 
 to a purchaser ojr pledgee in good faith, together with the 
 gauger's certificates, operates as a delivery of the whisky. 
 (Taney v. Pennsvlvania National Bank, 187 Fed., 689; 232 
 U. S. 174; T. D. 1959.) 
 
 Courts will not interfere with action of Commissioner in 
 requiring new bond. (Brown v. D. C. Foster & N. Glen 
 Williams, 194 Fed., 855 ; T. D. 1760.) 
 
 Taxation by State of liquors in bonded warehouses. (Car- 
 stairs V. Cochran, 193 U. S. 10.) 
 
 Sec. 49. [Act of August 27, 18H_ [28 Stat., 509) .] That , ^I^^^rSI 
 warehousing bonds and transportation and warehousing given by distiii- 
 bonds, conditioned for the payment of the taxes on all dis- *''" 
 tilled spirits entered for deposit into distillery or special 
 bonded warehouses on and after the passage of this Act, 
 shall be given by the distiller of said spirits as required by 
 140184°— 20 16 Digitized by Microsoft® 
 
242 DISTILLED SPIRITS. 
 
 w u h i°i ''\?ght existing laws, conditioned, however, for payment of taxes 
 
 years from date at the rate imposed by this Act and before removal from 
 
 as °"to "'^ n^u^^t warehouse and within eight years ; as to fruit brandy, from 
 
 to*1?ther ^"spirits *^^ ^^*® ^^ ^^^ Original gaugc, and as to all other spirits 
 
 from date of from the date of the original entry for deposit, and all 
 
 tor^d"eposit. ^'"^^ Warehousing bonds or transportation and warehousing 
 
 bonds conditioned for the payment of the taxes on distilled 
 
 spirits entered for deposit into distillery or special bonded 
 
 warehouses prior to that date shall continue in full force 
 
 and effect for the time named in said bonds, except where 
 
 bonds'? '''''"""^ new or additional bonds are required under existing law. 
 
 :!: ■ ^ :{: :|: $ # i^ 
 
 Provided, That thet distiller may, at his option and 
 under such regulations as the Commissioner of Internal 
 Eevenue, with the approval of the Secretary of the Treas- - 
 Animal bonds, ury, shall prcscribe, execute an annual bopd for the spir- 
 its so deposited in lieu of the bonds herein provided. 
 
 The .amendments effected by section 49, above, so far as 
 relates to spirits deposited in distillery Avarehouses, con- 
 sisted : 
 
 (1) In requiring the warehousing bond to be given in 
 each case by the " distiller," and not by the " distiller or 
 owner," as theretofore required ; 
 
 (2) In requiring the bond to be conditioned for the pay- 
 ment of taxes at the rate imposed by tlie act (sec. 48), and 
 within eight years from the date of original entry for de- 
 posit; and 
 
 (3) In providing for an annual warehousing bond (when 
 the distiller so elects), in lieu of the monthly' warehousing 
 bond. 
 
 Depositing spirits in a Government warehouse does not 
 ntake them the property of the Government or cause them 
 to be held at the risk of the bailee. (Farrell v. United 
 States, 09 U. S. (9 Otto), 221; 25 Int. Rev. Rec, 83; cir- 
 cuit court decision, 24 Int. Rev. Rec, 231. ) 
 
 Spirits destroyed in warehouses by iire or other casualty, 
 abatement or refund of taxes on. (Sec. 3221, p. 142.) 
 
 Spirits destroyed during transportation from a distillery 
 warehouse to a port of export. (Act of Dec. 20, 1879," p. 
 285.) 
 
 Spirits destroyed during transportation from a distillery 
 Warehouse to a manufacturing warehouse. (Sec. 15, act of 
 May 28, ISSO, p. 610.) 
 
 Spirits destroyed while in transit to general bonded 
 warehouse. (Greenbrier Distillery Co. v. Johnson, 88 Fed., 
 638.) 
 
 Stockholders of a corporation engaged in distilling can 
 not be accepted as sureties on the distillers' warehousing 
 bond. (16 Op. Atty. Gen., 10; 24 Int. Rev. Rec, 153.) 
 
 Empty packages found in distillery warehouses. (28 Int. 
 Rev. Rec, 189.) 
 
 Collection of tax on spirits not paid within the time fixed 
 by the bond. (29 Int. Rev. Rec, 81 ; 30 Id., 141, 165, 253, 
 261, 309; 31 Id., 61, 197.) 
 
 Laches of officers does not reUeve sureties. (See under 
 Bee. 67, act of August 27, 1894 ; p. 212. ) 
 
 Surety on distiller's warehouse bond held liable for in- 
 ternal revenue tax on spirits deposited in warehouse and 
 subsequently stolen after the government has obtained a 
 judgment forfeiting tlie distillery and the spirits. (United 
 States IBid^M<M)^rMi0P6)TS6f^&)i Baltimore, Md. v. United 
 States, 22) Fed., 592.) 
 
DISTILLED SPIRITS. 243- 
 
 Payment of the tax on forfeited spirits by the marshal 
 out of proceeds of sale discharges liability of sureties on 
 warehouse bond for tax. (United States v. Ulrici, 111 U. S., 
 38 r 30 Int. Rev. Eec, 111; T. D. 1.S39 and T. D. 1385.) 
 See United States v.. South Branch Distilling Co., 8 Biss. 
 162 Fed. Gas. 16359.) 
 
 Withdrawal of spirits from warehouse by assignee. (Let- 
 ter to Collector Mize, Oct. 14, 1895; 41 Int. Rev. Rec, 437.) 
 
 Eqtualizing spirits in warehouse- (T. D. 2008; White 
 Oak Distillery v. Sharp, T. D. 1681; Mayes v. Casey, 252 
 Fed. 754 ; T. D. 2757.) 
 
 The destruction of spirits by Are in a warehouse consti- 
 tutes a " renjoval " so as to make the tax payable before 
 expiration of bonded period. (United States v. Peace, 53 
 Fed., 999.) 
 
 When a suit is brought on a distiller's warehousing bond 
 for tax on spirits alleged to have been destroyed by flxe in 
 warehouse, defendants have th« right, in the absence of 
 fraud, coUusion, or negEgence, to make as a defense that 
 the spixits were so- destroyed and that no- tax Is due. (Free- 
 man V. United StateSf.157 Fed., 195.) This, is contrary to 
 Supreme Court decision in the FarrelT Case, 99 U. S., 221, 
 cited under section 3221, Revised Statutes. 
 
 Distiller's warehousing bonds. (T. Ds.. 1040, 1054, 2307.) 
 Transportation and warehousing bonds may be executed in 
 duplicate instead of triplicate. (T, D. 1548.) 
 
 Instructions relative to the preparation of bonds executed 
 by guarantee or surety companies (T. D. 1382.) 
 
 Execution of bonds by agents or attorneys. (T. D. 78'), 
 T. D. 877.): 
 
 Sec. 3294. lAmendedlysee.&yact of March 1,1879 {20 withdrawal 
 mat., 327), and ly sec. 6, act of May 28, 1880 {21 Stat., eXy IT ' 
 14S).~\ Any distilled spirits may, on payment of the tax 
 thereon, be withdrawn from warehouse on application to 
 the collector qf the district in charge of such warehouse, 
 on making a withdrawal entry in duplicate, and in the 
 following form : 
 
 EN-TET BOa WITHDEAWAl, OF DISTILEED SPnilTS TEOM WAEEHOUSE. 
 
 Tax. paid. 
 
 Entry of distilled spirits' to be withdrawn, on payment of the 
 
 tax, from warehouse of distillery number , situated in the 
 
 district of , by , deposited on the day 
 
 of , anno Domini , by , in said warehouse. 
 
 And the entry shall specify the whole number of caslis 
 or packages, with the marks and serial numbers thereon, 
 the number of gauge or wine gallons, and of proof gallons 
 and taxable gallons, and the amount of the tax on the dis- 
 tilled spirits contained in them at the time they were 
 deposited in the distillery warehouse ; and said entry shall 
 also- specify the number of gauge or wine gallons, and of 
 proof gallons, and taxable gallons contained in said casks 
 or packages at the time application shall be made f &r the 
 withdrawal thereof ; and on payment of the tax the col- 
 lector shall issue his order to the storekeeper in charge 
 of the warehouse for the delivery. One of said eptries 
 shall be filed in the office of the collector, and the other 
 transmitted by him to the Commissioner of Internal 
 Revenue. 
 
 Digitized by Microsoft® 
 
244 DISTILLED SPIRITS. 
 
 d/i'wn' fTom Sec. 50. [Act of August 27, 189 J,, {28 Stat, 609).]] 
 warehouse may That the distiller of any distilled spirits deposited in any 
 e regauge . distillery warehouse, or special bonded warehouse, or in 
 any general bonded warehouse established under the pro- 
 visions of this Act, may, prior to the expiration of four 
 years from the date of original gauge as to fruit brandy, 
 or original entry as to all other spirits, file with the col- 
 lector a notice ^ving a description of the packages con- 
 taining the spirits, and request a regauge of the same, and 
 thereupon the collector shall direct a ganger to regauge 
 the spirits, and to mark upon each such package the 
 number of gauge or wine gallons and proof gallons 
 therein contained. If upon such regauging it shall ap- 
 pear that there has been a loss of distilled spirits from 
 any cask or package, without the fault or negligence of 
 AUowance tor the distiller thereof, taxes shall be collected only on the 
 eakage. quantity of distilled spirits contained in such cask or 
 
 package at the time of the withdrawal thereof from the 
 distillery warehouse or other bonded warehouse: Pro- 
 vided, however, That the allowance which shall be made 
 for such loss of spirits as aforesaid shall not exceed one 
 proof gallon for two months or part thereof ; one and one- 
 half gallons for three and four months ; two gallons for 
 five and six months; two and one-half gallons for seven 
 and eight months ; three gallons for nine and ten months ; 
 three and one-half gallons for eleven and twelve months ; 
 four gallons for thirteen, fourteen, and fifteen months; 
 four and one-half gallons for sixteen, seventeen, and 
 eighteen months; five gallons for nineteen, twenty, and 
 twenty-one months ; five and one-half gallons for twenty- 
 two, twenty-three, and twenty-four months; six gallons 
 for twenty-five, twenty-six, and twenty-seven months; 
 six and one-half gallons for twenty-eight, twenty-nine, 
 and thirty months; seven gallons for thirty-one, thirty- 
 two, and thirty -three months ; seven and one-half gallons 
 for thirty- four, thirty-five, and thirty-six months ; eight 
 
 fallons for thirty-seven, thirty-eight, thirty-nine, and 
 orty months; eight and one-half gallons for forty -one, 
 forty-two, forty-three, and forty-four months ; nine gal- 
 lons for forty-five, forty-six, forty-seven, and forty-eight 
 months; and no further allowance shall be made: And 
 provided further, That in case such spirits shall remain 
 in warehouse after the same have been regauged, the. 
 packages containing the spirits shall, at the time of with- 
 drawal from warehouse and at such other times as the 
 Commissioner of Internal Revenue may direct, be again 
 regauged or inspected ; and if found to contain a larger 
 quantity than shown by the first regauge, the tax shall be 
 collected and paid on the quantity contained in each such 
 package as shown by the original gauge: And provided 
 further, That taxes shall be collected on the quantity con- 
 Act of March taincd in each cask or package as shown by the original 
 ^' IToi janu- gauge, 'N\i^^^)^(^^\^r^n®ot request a regauge be- 
 ary 13, 1903. fore the expiration of seven years from the date of origi- 
 
DISTILLED SPIRITS. 
 
 245 
 
 nal entry or gauge : Provided also, That the foregoing al- 
 lowance of loss shall apply only to casks or packages of a 
 capacity of forty or more wine gallons, and that the al- 
 lowance for loss on casks or packages of less capacity 
 than forty gallons shall not exceed one-half the amount 
 allowed on said forty-gallon cask or package ; but no al- 
 lowance shall be made on casks or pacKages of less capac- 
 ity than twenty gallons : And provided further, That the 
 proof of such distilled spirits shall not in any case be 
 computed at the time of withdrawal at less than one hun- 
 dred per centum. 
 
 Regulations governing tlie short metliod oJ! withdrawing 
 spirits from internal-revenue bonded warehouses. (T. D. 
 18998.) 
 
 Method of expediting withdrawals of spirits from dis- 
 tillery warehouses in certain cases. (T. D. 18778.) 
 
 Second regauge upon withdrawal of spirits from bonded 
 warehouses by distillers — when required. (T. D. 19061.) 
 
 Withdrawal of spirits on original gauge. (T. D. 2562.) 
 
 Withdrawal of domestic spirits. When and how request 
 for regauge of spirits in bond less than four years may be 
 made. (T. D. 19125.) 
 
 Equalizing in warehouse. (T. D. 1681 ; Mayes v. Casey, 
 252 Fed., 754; T. D. 2757.) 
 
 Explaining the provisions of section 50, act of August 28, 
 1894, as to the regauging of distilled spirits. (Cir. No. 
 463; 42 Int. Kev. Rec, 297.) 
 
 Requiring collectors of internal revenue to certify to 
 the authenticity of the signatures to requests for regauge 
 of spirits under section 50. (Cir. No. 468; 42 Int. Rev. 
 Rec, 373.) 
 
 Description of packages of spirits in notice and request 
 for regauge under section 50. (Circular Letter No. 4^4 
 43 Int. Rev. Rec., 149.) 
 
 Delay in filing application for regauge. (Cir. No. 645 
 T. D. 687.) 
 
 Excessive losses of distilled spirits in bonded warehouses, 
 (Cir. No. 625,. revised ; T. D. 1689 ; Reg. No. 20, revised, art, 
 32, p. 19; T. D. 2409; T. D. 2508.) 
 
 No allowance can be made for additional outage occur- 
 ring after the first regauge, even where the spirits are to 
 be exported. (T. D. 18994.) 
 
 Transfer of distilled spirits to general bonded ware- 
 house; losses adjusted. (T. D. 1320.) 
 
 Visits of general storekeepers and gaugers in charge of 
 distillery warehouses to detect excessive losses of distilled 
 .spirits. (T. D. 461.) 
 
 Sec. 1. {Act of March 3, 1899 {30 Stat., 1349) •] That 
 under the conditions and limitations imposed by section 
 fifty of the Act of August twenty-eighth, eighteen hun- 
 dred and ninety-four, entitled "An Act to reduce taxa- 
 tion, to provide revenue for the support of the Govern- 
 ment, and for other purposes," allowance for loss shall 
 be made as. to all distilled spirits produced and originally 
 gauged for deposit prior to January first, eighteen hun- 
 dred and ninety-nine, and which lawfully remain in any 
 internal-revenue bonded warehouse, after the expiration 
 of the period of forty-eight months from the date of 
 original gauge: Provided, however, That the allowance 
 for loss herein authofl^'z^lfeHyiMasetseflSfenine and one- 
 
 Allowance for 
 
gauge. 
 
 24S DISTILLED SPIRITS. 
 
 lialf gallons for forty-nine, fifty, fifty-one, and fifty-two 
 months; ten gallons for fifty-three, fifty-four, fifty-five, 
 and fifty-six months; ten and one-half gallons for fifty- 
 seven, fifty-eight, fifty -nine, and sixty months; eleven 
 gallons for sixty-one, sixty-two, sixty-three, and sixty- 
 four months; eleven and one-half gallons for sixty-five, 
 sixty-six, sixty-seven, and sixty-eight months; twelve 
 gallons for sixty-nine, seventy, seventy-one, and seventy- 
 two months; twelve and one-haK gallons for seventy- 
 three, seventy- four, seventy-five, and seventy-six months : 
 thirteen gallons for seventy-seven, seventy-eight, seventy- 
 nine, and eighty months ; and thirteen and one-half gal- 
 lons for eighty-one, eighty-two, eighty-three, and eighty- 
 four months, and no further allowance shall be made, 
 b e^^lIceTained Sec. 2. [Act of March 3, 1899 {30 Stat., m9) .] That 
 by regauge. the allowauce for loss herein provided shall be ascertained 
 by regauge on request of distiller before the expiration 
 of eighty- four months from date of original gauge, and 
 shall apply to spirits remaining in any internal-revenue 
 bonded warehouse which shall have been regauged here- 
 tofore under the provisions of section fifty of the said 
 Act of August twenty-eighth, eighteen hundred and 
 ninety-four: Provided, That for the regauge of spirits 
 originally gauged for deposit on or before the first day 
 Time for re- of March, eighteen hundred and ninety-two, the request 
 of the distiller for a regauge under the provisions of this 
 Act may be made at any time before the first day of May, 
 eighteen hundred and ninety-nine. 
 
 Regauge of bonded, spirits on i-equest of distiller under 
 the provisions of section 50, act of August 28, 1894, as 
 Jimended by act of March 3, 1899. (Int. Rev. Cir. No. 525; 
 T. D. 20836.) 
 
 When requests for regauge must be filed under act of 
 March 3, 1899. If requests are seasonably filed no injury 
 will result to distiller by reason of delay in regauge. (T. D. 
 20948.) 
 
 The maximum allowance for each of the periods named in 
 the case of a cask or package of 40 or more wine-gallons' 
 capacity may be stated in tabiUar form as follows : 
 
 Not to exceed — 
 
 1 proof gallon, for 2 months -or part thereof. 
 ' IJ gallons for more tban 2 months and not more than 4 
 
 months. 
 
 2 gallons for more than 4 months and not more than 
 months. 
 
 2| gallons for more than months and not more than 8 
 months. 
 
 3 gallons for more than 8 -months and not more than 10 
 months. 
 
 3J gallons for more than 10 months and not more tban 12 
 months. 
 
 4 gallons for more' than 12 months and not more tban 15 
 months. 
 
 4J gallons for more than 15 months and not more than 18 
 months. 
 
 5 gallons for more than 18 months and not more than 21 
 months. 
 
 5i gallons for more than 21 months and not more than 24 
 months. 
 
 6 gallons for more tban 21 months and not more than 27 
 months. 
 
 ej gallons for more than 27 months and not more than 30 
 montiis. 
 
 7 gallons for morg than 30 months and not more than 33 
 
 [Mg02sea by Miqrosoft® 
 
DISTILLED SPIKITS. 247 
 
 7i gallons for more tliaai 33 months and not more than 30 
 months. 
 
 8 gallons for more than 30 months anfl not morp than 40 
 months. 
 
 8J gallons for more than 40 months and not more than 4-4 
 months. 
 
 9 gallons for more than 44 months and not more than 43 
 months. \ 
 
 OJ gallons lor more than 48 months and not more than 52 
 months. 
 
 10 gallons for more than r.i; months and not more than .50 
 months. 
 
 lOJ gallons for more than DO month.'S and not more than 00 
 months. 
 
 11 gallons for more than GO months and not more than 04 
 months. 
 
 11^ gallons for more than 04 months and not more than 08 
 months. 
 
 12 gallons for more than 08 months and not more than 72 
 months. 
 
 12i gallons for more than 72 months and not more than 70 
 months. 
 
 13 gallons for more than 70 months and not more than 80 
 months. 
 
 13| gallons for more than 80 months and not more than 84 
 months. 
 
 The maximum allowance |or loss on cask.s or packages of 
 less capacity than 40 wine gallons and not less than 20 wine 
 gallons is limited to one-half tlie amounts stated in the above 
 table. 
 
 [Act January IS, 1903 {3'3 Stat., 770).] That all dis- 0"t»s«- 
 tilled spirits now in internal-revenue bonded warehouses 
 or which may hereafter be produced and deposited in such 
 warehouses shall be entitled to the same allowance for loss 
 from leakage or evaporation which now exists in favor 
 of distilled spirits produced, gauged, and so deposited 
 prior to January first, eighteen hundred and ninety -nine, 
 and subject to the same conditions and limitations. 
 
 This act extends the allowance for leakage to all distilled 
 spirits in bond, and is amendatory of the act of March 3, 
 1S99. (30 Stat., 1349.) 
 
 Fault or negligence in cfonnection witli loss of distilled 
 spirits in bonded warehouses. (Cir. No. 328 ; 35 Int. Rev. 
 Bee., 190.) 
 
 Regulations concerning the tare of spirit packages. (Cir. 
 ■ No. 675; T. D. 942; T. D. 183.5.) 
 
 Excessive loss. (T. D. 2508.) 
 
 Equalizing loss of spirits in warehouse. (T. Ds. 1631, 
 2008, 2757.) 
 
 Sampling spirits in warehouse. (T. D. 2397.) 
 
 GENERAL BONDED WAEEHOUSES FOE DISTILLED SPIRITS OTHER 
 THAN FETJIT BRANDr. ACT OF AUGUST 27, 1894 (28 STAT., 
 509). 
 
 Sec. 51. That the Commissioner of Internal Revenue .^i^j^^t^ distriof" 
 shall be, and is hereby, authorized, in his discretion and 
 upon the execution of such bond as he may prescribe, to 
 establish one or more warehouses, not exceeding ten in 
 number in any one collection district, to be known and 
 designated as general bonded warehouses, and to be used 
 exclusively for the -storage of spirits distilled from ma- 
 terials other than fruit, each of which warehouses shall be 
 in the charge of a storekeeper or storekeeper and gauger .J.^k^S^e ^of 
 to be appointed, assigned, transferred, and paid m the ^OTekeeper and 
 s^e manner as such oiHcers for distillery warehouses are ^''"^ '' 
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248 DISTILLED SPIEITS. 
 
 now appointed, assigned, transferred, and paid. Every 
 cf ^ouector?"'™' ^^^^^ 'warehonse shall be under the control of the collector 
 of internal revenue of the district in which such ware- 
 tody" ''of"*storl- house is located, and shall be in the joint custody of the 
 keeper and pro- storekeeper and proprietor thereof, and kept securely 
 be'^mVockld* 1° locked, and shall at no time be unlocked or opened or re- 
 opened except, i^^in Open except in the presence of such storekeeper or 
 other person who may be designated to act for him, as 
 provided in the case of distillery warehouses; and such 
 Keguiations. warchouses shall be under such further regulations as the 
 Commissioner of Internal Revenue, with the approval of 
 the Secretary of the Treasury, may prescribe. 
 .nove'spiriS^from Sec. 52. That any distilled spirits made from materials 
 dis>iiiery ware- other than fruit, and lawfully deposited in a distillery 
 b°oTd'e d^ warl- Warehouse, may, upon application of the distiller thereof, 
 house. jjg removed from such distillery warehouse to any general 
 
 bonded Avarehouse established under the provisions of the 
 preceding section ; and the removal of said spirits to said 
 general bonded warehouse shall be under such regulationsr 
 and after making such entries and executing and filing 
 with the collector of the district in which the spirits were 
 manufactured, such bonds and bills of lading, and the 
 gi^ang of such other additional security, as may be pre- 
 scribed by the Commissioner of Internal Revenue and ap- 
 proved by the Secretary of the Treasury. 
 stamp to be Sec. 53. That all spirits intended for deposit in a geh- 
 r'movai.'' ' ° "^ "^ eral bonded warehouse, before being removed from the 
 distillery warehouse, shall have affixed to each package an 
 engraved stamp indicative of such intention, to be pro- 
 vided and furnished to the several collectors as in the case 
 of other stamps, and to be charged to them and accounted 
 for in the same manner. 
 Ti w spirits Sec. 54. That any spirits removed in bond as aforesaid 
 ?d^^n''1i gTiferai may? upon its arrival at a general bonded warehouse, be 
 bonded ware- deposited therein upon making such entries, filing such 
 bonds and other securities, and under such regulations as 
 shall be prescribed by the Commissioner of Internal Rev- 
 enue, with the approval of the Secretary of the Treasury. 
 Tax Fhaii be It shall be ouc of the conditions of the warehousing bond 
 cfiht y^rs* ftim co'^^'^iiiS ^^^^^ spirits that the principal named in said 
 the date of orig- bond sliall pay the tax on the spirits as specified in the 
 'aistmlry"' trare" entry or cause the same to be paid within eight years 
 ''°"'=^- from the date of the original entry of the same into the 
 
 distillery warehouse, and before withdrawal, except as 
 hereinafter provided. 
 Only one with- igEc. 55. That any spirits may be withdrawn once and 
 
 diawal for trans- „ iiVi i p , 
 
 portp.tion to an- no more irom one general bonded warehouse tor trans- 
 other warehouse, portatiou to another general bonded warehouse"^, and when 
 
 intended to be so withdrawn, shall "have affixed thereto 
 
 In such case another general bonded warehouse stamp indicative of 
 
 t'o'lJe'Tm^ed*'"'' such intention; and the withdrawal of such spirits, and 
 
 their transfer to and entry into such general bonded ware- 
 
 Digitized by Microsoft® 
 
dental fire. 
 
 DISTILLED SPIRITS. 249 
 
 house shall be under such regulations and upon the filing 
 of such notices, entries, bonds, and bills of lading as the trie^^bonds bms 
 Commissioner of Internal Revenue, with the approval of <> ' 'lading,' i n 
 the Secretary of the Treasury, may, from time to time, "^'Bonds"'tr'be 
 .prescribe; and the bonds covering spirits in general g™"^„Y nfif'be 
 bonded warehouses shall be given by distillers of the renewed. 
 spirits, and shall be renewed at such times as the Commis- 
 sioner of Internal Revenue la&j, by regulations, require. 
 
 Sec. 56. That the provisions of existing law in regard frel' o('°tIxf' '"" 
 to the withdrawal of distilled spirits from warehouses 
 upon payment oftax, or for exportation, or for transfer to Transfers t o 
 
 '- J^ • • 1 1 i ii ■ 1 manufacturing 
 
 a manuiacturing warehouse, and as to the gauging, mark- warehouse and 
 ing, branding, and stamping of the spirits upon such uniteTst^tes'or 
 withdrawals, and in regard to withdrawals for the use of ^?^^f''= institn- 
 the United States or scientific institutions or colleges of ' " ' 
 learning, including the provisions for allowance for loss Loss by acci- 
 by accidental fire or other unavoidable accident, are ''""*'' 
 hereby extended and made applicable to spirits deposited 
 in general bonded warehouses under this act. 
 
 Under this section tlie provisions for allowance for loss 
 by fire or other tmavoidable accident do not extend to the 
 case of such a loss while spirits are in transit from a distill- 
 ery warehouse to a general bonded warehouse. (Greear 
 brier Distillery Co. v. Johnson, 88 Fed., 638.) 
 
 Sec. 57. Whenever distilling shall have been suspended ^iJi^f^"//" 4™r" 
 at any distillery for a period or periods aggregating six house to general 
 months during any calendar year, and the quantity of house*^ may™"e 
 spirits remaining in the distillery warehouse does not ^J^^IJ^^^^y^oom- 
 exceed five thousand proof gallons, or whenever, in the temai Revenue, 
 opinion of the Commissioner of Internal Revenue, any warehouse^ con- 
 distillery -v^arehouse or general bonded warehouse is un- f^^^^ gauons'and 
 safe or unfit for use, or the merchandise therein is liable the distillery is 
 to loss or great wastage, he may in either such case dis- sio"n six SoS 
 continue such warehouse and require the merchandise ^^j^^^^f^'^'g ^ „ " 
 therein to be transferred to such other warehouse as he safe, or unfit for 
 may designate, and within such time as he may prescribe; ""^^provl'sions of 
 and all the provisions of section thirty-two hundred and |^f' ™ade^'lipu- 
 seventy-two of the Revised Statutes of the United 'States cake. 
 relating to transfers of spirits from warehouses, includ- 
 ing these imposing penalties, are hereby made applicable 
 to transfers to or from general bonded warehouses estab- 
 lished under this act. 
 
 Sec. 58. The tax upon any distilled spirits removed be^^'essed ™nd 
 from a distillery warehouse for deposit in a general collected by dis- 
 bonded warehouse, and in respect of which any require- 
 ment of this act is not complied with, shall, at any time 
 when knowledge of such fact is obtained by the Commis- 
 sioner of Internal Revenue, be assessed by him upon the 
 distiller of the same, and returned to the collector, who 
 shall immediately demand payment of such tax, and upon 
 the neglect of payment by the distiller shall proceed to 
 collect the same by distraint. But this provision shall not 
 exclude any other remedy or proceeding provided by law 
 
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250 DISTILLED SPIRITS. 
 
 cesdve*^ios°s In *° enfoi'ce the payment of the tax, If it shall appear at 
 casks in ware- any time that there has been a loss of distilled spirits from 
 signer iS"T- any cask or package deposited in a general bonded ware- 
 demand"tox°'^and ^lousc or Special bonded warehouse, other than the loss 
 if tax uipaid provided for in section thirty-two hundred and twenty- 
 may assess. ^^^ ^^ ^^^ Revised Statutes of the United States, which, 
 in the opinion of the Commissioner of Internal Revenue, 
 is excessive, he may instruct the collector of the district 
 in which the loss has occurred to require the withdrawal 
 from warehouse of such cask or package of distilled spirits 
 and to collect the tax accrued upon the original quantity 
 of distilled spirits entered into the warehouse in such cask 
 or package, less only the allowance for loss provided by 
 law. If the said tax is not paid on demand the collector 
 shall report the amount due, as shown by the original 
 gauge, upon his next monthly list, and it shall be assessed 
 and collected as other taxes are assessed and collected. 
 Penal provi- Sec. 59. That in case any distilled spirits removed from 
 lenses %edfied!' ^ distillery Warehouse for deposit in a general bonded 
 warehouse shall fail to be deposited in such general 
 bonded warehouse within ten days after such removal, or 
 within the time specified in any bond given on such re- 
 moval, or if any distilled spirits deposited in any general 
 bonded warehouse shall be taken therefrom, for export or 
 otherwise, without full compliance with the provisions of 
 this act, and with the requirements of any regulations 
 made thereunder, and with the terms of any bond given 
 on such removal, or if any distilled spirits which have 
 been deposited in a general bonded warehouse shall be 
 found elsewhere, not having been removed therefrom 
 according to law, any person who shall be guilty of such 
 failure, or any person who shall. in any manner violate 
 any provision of the next preceding eleven sections of this 
 act, shall be subject, on conviction, to a fine of not less 
 than one hundred dollars nor more than five thousand 
 dollars, or to imprisonment for not less than three months 
 nor more than three years for every such failure or viola- 
 tion ; and the spirits as to which such failure or violation, 
 or unlawful removal shall take place shall be forfeited to 
 the United States. 
 
 Kegulations, No. 20, relative to the establishment of gen- 
 ■ eral bonded warehouses, for the storage of spirits made 
 from material other than fruit. 
 
 Supplement No. 1, relative to the bonding of distilled 
 spirits in general bonded warehouses. 
 
 Bills of lading. (T. D. 1533.) 
 
 Loss of spirits while in transit to general bonded, ware- 
 house. (Greenbrier Distillery Co. v. Johnson, 88 Fed., 
 638.) 
 
 Loss of spirits in warehouse ; See Sec. 3221, E. S., p. 142. 
 
 Loss of spirits in transit for export. (T. Ds. 2385, 2350, 
 2461.) 
 
 Excessive loss in warehouse, unlawful equalizing of loss 
 of bonded spirits, etc. (See decisions cited under sees. 
 3292, 3294, R. S., pp. 239, 243.) -' 
 
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DISTILLED SPIRITS. 251 
 
 SPECIAL BONDED WAREHOUSES FOR FRUIT BRANDY. 
 
 [Act of March 3, 1877 (19 Stat., 303).] 
 
 The provisions of this act were extended and made ap- 
 plicable to brandy distilled from apples or peaches, or from 
 any other fruit, by the act of October 18, 1888 (25 Stat., 
 560.) See p. 2.51. 
 
 Sec. 1. That the Commissioner of Internal Revenue 
 shall be, and hereby is, authorized in his discretion, and 
 upon the execution of such bonds as he may prescribe, to 
 establish warehouses, to be known as special bonded 
 warehouses, not exceeding ten in' number in any one col- . Not over ten 
 lection-district, exclusively for the storage of brandy ^° °"^ '^'"'^ ' 
 made from grapes, each of which warehouses shall be in 
 the charge of a storekeeper, to be appointed, assigned, gj-oSke?"*'^ °' 
 transferred, and paid in the same manner that store- ^ °^'^ ^^^"' 
 keepers for distillery-warehouses are now appointed, as- 
 signed, transferred, and paid. Every such warehouse 
 shall be under the control of the collector of internal under control 
 revenue of the district in which such warehouse is located, °' c°ii'=<=t°r- 
 and shall be in the joint custody of the storekeeper and in joint cus- 
 the proprietof thereof and kept securely locked, and shall |°eeper "Ld^ p"- 
 at no time be unlocked or opened or remain open except p".?*"/-^ ^ 
 
 ,1 pij-i 11 1 Not to be un- 
 
 lu the presence or such storekeeper or other person who locked or opened 
 may be designated to act for him, as provided in the case ^^"^'^^^ ^*<=- 
 of distillery-warehouses. And such warehouses shall be Ke?uiations. 
 under such further regulations as the Commissioner of 
 Internal Eevenue, with the approval of the Secretary of 
 the Treasury, may prescribe. 
 
 Sec. 2. That every distiller of brandy from grapes. Distiller to pay 
 upon rendering his monthly return of materials used and inonthiy^'return! 
 spirits produced by him, shall immediately pay the tax trand'j^jn^Cnd 
 upon such spirits, or may, after they have been properly to special bonded 
 gauged, marked, and branded, under' regulations to be '"'"^^ °"^^" 
 prescribed by the Commissioner of Internal Eevenue and 
 approved by the Secretary of the Treasury, and also 
 stamped as hereinafter provided, cause them to be re- 
 moved in bond from the place of manufacture to a special 
 bonded warehouse, under such regulations, and after 
 making such entries, and executing and filing with the 
 collector of the district in which such spirits were manu- 
 factured such bonds and bills of lading, and giving such 
 other additional security as may be prescribed by the 
 Commissioner of Internal Revenue 'and approved by the 
 Secretary of the Treasury. 
 
 Bond to be conditioned under act of August 27. 1894, for 
 payment of tax at $1.10 per gallon within eight years from 
 date of original gauge. See p'. 241. 
 
 Sec. 3. That all brandy intended for deposit in a spe- stamp to be 
 cial bonded warehouse, before being removed from the ^^^i. ''^*°" "' 
 distillery, shall have affixed to each package an engraved 
 stamp indicative of such intention, to be provided and 
 furnished to the several collectors as in the case of other 
 
 Digitized by Microsoft® 
 
252 DISTILLED SPIKITS. 
 
 stamps, and to be charged to them and accounted for in 
 the same manner. * * * 
 
 The act of Slay 28, 1S80 (21 Stat, 145), repcalcLl the 
 provision charging 10 cents for these stamps. 
 
 Sec. 4. [Amended ly sec. Ii9, act of August £7, 1894 
 
 {28 Stat., 509) 
 How brandy I'emovecl in bonc 
 
 That any brandy made from grapes 
 
 - .„. „ „ cl accoi'ding to law may, upon its arrival 
 
 S in Ihe wa?e- at a Special bonded -warehouse, be deposited therein upon 
 house. nlaking such entries, filing such bonds and other securi- 
 
 ties, and under such regulations as shall be prescribed 
 by the Commissioner oi Internal Revenue with the ap- 
 tm shall be pj-oyai of the Secretary of the Treasury. It shall be 
 
 paid within eight i ... •' j. , i ^ ■ l i „ 
 
 yeaiB from date one 01 the conditioiis or the warehousing-bond cover- 
 of original gaugr,;. ■ ^^^ ^^^^ .Spirits that the principal named in said bond 
 shall pay the tax on the spirits as specified in the entry, 
 or cause the same to be paid within eight years from 
 the date of the original gauging of the same, and be- 
 fore withdrawal, except as hereinafter provided. 
 oiS^l? ioT Uins- Sec. 5. That any brandy made from grapes may be 
 portation to an- withdrawn once and no more from one special bonded 
 
 other warehouse. , c i , i • i ji t»'ii ti 
 
 warehouse for transportation to another special bonded 
 warehouse; and such brandy shall, on its arrival at the 
 second special bonded warehouse, be immediately entere'd 
 therein, from which warehouse it shall be withdrawn 
 additional' stamp o^^'^ly o^ payment of the tax or for immediate exporta- 
 to be affixed, tion. ' In casc the brandy withdrawn is intended for de- 
 posit in another special bonded warehouse, an additional 
 stamp, indicative of such intention, shall be affixed to 
 each package withdrawn, as in the case of brandy with- 
 drawn from a distillery intended to be so * deposited. 
 ctcf,^n^e:^orta- ^^d in case the brandy is intended for exportation, an 
 t'O"'- engraved stamp indicative of such intention, shall be 
 
 ^ affixed to each package so removed, as in the case of 
 
 spirits withdrawn from a distillery bonded warehouse 
 Eec^™33™'H. s-! for exportation, under the provisions of section thirty- 
 appUcabie "'"'''' three hundred and thirty, Revised Statutes : all the pro- 
 visions of which section not inconsistent with this act 
 drawais' are'' to are hereby made applicable to such withdrawals. And 
 be made. jj]j witliclrawals authorized by law of grape-brandy 
 
 from any special bonded warehouse shall be upon mak- 
 ing such withdrawal entries, and under such regula- 
 tions, and unless the withdrawal is upon payment of 
 tax, upon the execution of such bonds and bills of lad- 
 ing as the Commissioner of Internal Eevenue, with the 
 approval of the Secretary of the Treasury, may pre- 
 how''S'nceied'"''' scribc. Export bonds given tinder the provisions of this 
 act shall be canceled upon the production of such certifi- 
 cates of landing as the Commissioner of Internal Eeve- 
 nue, with the approval of the Secretary of the Treas- 
 ury, may prescribe, or upon proof of loss at sea satis- 
 Be/mf,°R. s, factory to the Commissioner of Internal Revenue. And 
 l'oTb"cksuait*y! *^^® provisions of existing law relative to an allowance 
 made applicable! of loss ^J Qf^j^"^^ ^^ j^j^^^}^ bonded warehouse are 
 
DISTILLED SPIRITS. 253 
 
 hereby made capplicable to brandy stored in special 
 bonded warehouses, in accordance with the provisions of 
 this act. '' 
 
 As to regauge of spirits withdrawn from warehouse, 
 allowance for lealsage, etc., see section 50, act of August 27, 
 1894, page 244 ; section 1, act of Slarch 3, 1899, page 245. 
 
 Sec. 6. That the provisions of existing law in regard to free of uxf '*"' 
 the exportation of distilled spirits are hereby extended so 
 as to permit the exportation from special bonded ware- 
 houses of grape brandy free of tax in any original cask 
 containing not less than twenty gallons, and for the expor- 
 tation of grape brandy upon which all taxes have been 
 paid, with the privilege of drawback in quantities of not drawback, 
 less than one hundred gallons, and in the distillers' orig- 
 inal cask, containing not less than twenty nine gallons 
 each. 
 
 Twenty wine gallons undoubtedly intended, instead of 
 " twenty nine gallons," as in the act. It was probably an 
 error in engrossing. 
 
 See section 3329, paga 279, and section 3330, page 2S1. 
 
 Sec. 7. That whenever, in the opinion of the Commis- may \e* disa)i^ 
 sioner of Internal Revenue, any special bonded warehouse t'""^'^' ^^^ 
 is unsafe or unfit for use, or the merchandise therein is 
 liable to loss or great wastage, he may discontinue such 
 warehouse, and require the merchandise therein to be 
 transferred to such other warehouse as he may designate, 
 and within such time as he may prescribe; and all the 
 provisions of section thirty two hundred and seventy two s., % to^traral 
 of the Eevised Statutes of the United States, relating to ippjieabie. """^^ 
 transfers of spirits from warehouses, including those 
 imposing penalties, are hereby made applicable to trans- 
 fers from special bonded warehouses. 
 
 Sec. 8. That the tax upon any brandy distilled from be^l^sed ™nd 
 grapes, removed from the place where it was distilled, ™"i^t''^'^ ^^ ^^' 
 and ip respect of which any requirement of this act is not 
 complied with, shall at any time when knowledge of such 
 fact is obtained by the Commissioner of Internal Revenue, 
 be assessed by him upon the distiller of the same, and 
 returned to the collector, who shall immediately demand 
 payment of such tax, and, upon the neglect or refusal of 
 payment by the distiller, shall proceed to collect the same 
 by distraint. But this provision shall not exclude any 
 other remedy or proceeding provided by law. 
 
 Sec. 9. That nothing in this act shall be construed as ^J^"^ ^ff^^ P^ 
 extending the time in which the tax on brandy made from eight years. 
 grapes shall be paid beyond three [eight] years from the 
 day on which the taxable quantity is ascertained by the 
 gauger ; and all brandy made from grapes, found else- ^°'^^"*"'^«- 
 where than in a distillery or special bonded warehouse, 
 not having been removed therefrom according to law, and 
 all brandy on which the tax has not been paid within 
 
 Digitized by Microsoft® 
 
254 DISTILLED SPIRITS. 
 
 three [eight] years of the date of the original gauging 
 shall be forfeited to the United States. 
 
 Bonding period clianged from three years to eight years 
 by section 49, act of August 2T, 1894. (See p. 252.) 
 
 haTC^the'°"orce SiEC. 10. That the Commissioner of Internal Eevenue, 
 and effect of with the approval of the Secretary of the Treasnry, may 
 ^^' make all needful rules and regulations for carrying into 
 
 effect the provisions of this act, and such regulations when 
 made shall have all the force and effect of law. 
 Penal provi- Sec. 11. That iu casc any grape brandy removed from 
 Sn^ls ^eoifled. the distillery for deposit in a special warehouse, shall fail 
 to be deposited in such warehouse within ten days there- 
 after, or within the time specified in any bond given on 
 such removal, or if any grape brandy deposited in any 
 special warehouse shall be taken therefrom for deposit in 
 another warehouse, or for export, or otherwise, without 
 full compliance with the provisions of this act, and with 
 the requirements of any regulations made thereunder, and 
 with the terms of any bond given on such removal, then 
 any person who shall be guilty of such failure, and any 
 person who shall in any manner violate any provision of 
 this' act, or of the regulations made in pursuance thereof, 
 shall be subject, on conviction, to a fine of not less than 
 one hundred dollars nor moi'e than five thousand dollars,, 
 and to imprisonment for not less than three months nor 
 more than three years, for every such failure or violation ; 
 and the spirits as to which such failure or violation shall 
 take place shall be forfeited to the United States. 
 
 Prc^prietors of special bonded warehouses may (cscept in 
 case of tax-paid withdrawals) decline to deliver brandy 
 stored in such warehouses until the warehouse receipts- 
 issued by them' are surrendered, where the surrender of 
 such receipts,, before delivery of the spirits, is required by 
 law. (T. D. 714.) 
 
 AN ACT To provide for warehousing fruit brandy. 
 [Act of October 18,, 1S88 (.25 Stat, 560). 1 
 
 Extension o f That the provisious of an act entitled " An act relating 
 Acrof °March °3, to the production of fruit brandy, and to punish frauds 
 ^*'^- connected with the same," approved March third, 
 
 eighteen hundred and seventy-seven, be extended and 
 made applicable to brandy distilled from apples or 
 peaches, or from any other fruit the brandy distilled 
 from which is not noW required or hereafter shall not be 
 required to be deposited in a distillery warehouse: Pro- 
 vided^ That each of the warehouses established under 
 said act, or which may hereafter be established,^ shall be 
 in charge either of a storekeeper or of a storekeeper 
 and ganger, at the discretion of the Commissioner of 
 Internal Revenue. 
 
 Regulations No. 5, revised. Concerning special-bonded 
 warehouses for storage of brandy made from apples, 
 
 Digitized by Microsoft® 
 
DISTILLED SPIRITS. 255 
 
 peaches, grapes, pears, plneaiJples, oranges, apricots, 
 berries, or prunes, exclusively. 
 
 Storekeeper and gauger is now styled storekeeper-gauger. 
 (Act of June 28, 1902.) 
 
 Sec. 3295. [Amended hy act of July 16, 1892 (27 Stat., .t^Sp^ng ^ 'a°ld 
 201).'] Whenever an order is received from the collector branding' spMta 
 for the removal from any distillery warehouse of any ^wehouse.* "^ ° ™ 
 cask of distilled spirits on which tax has been paid, the 
 gauger by whom the same is gauged and inspected shall, 
 in presence of the storekeeper and before such cask has 
 left the warehouse, place upon the head thereof, in such 
 manner as to cover no portion of any brand or mark 
 prescribed by law already placed thereon, a stamp, on 
 which, shall be engraved the nilmbe,r of proof gallons 
 contained in said cask on which the tax has been paid, 
 and which shall state the serial number of the cask, the 
 name of the person by whom the tax was paid, and the 
 person to whom and the place where it is to be delivered. 
 Said stamp shall be signed by the collector of the dis- 
 trict, the storekeeper and gauger, and shall be as 
 follows : 
 
 Tax-paid stamp, No. — . 
 
 Received , 18 — , from , tax on 
 
 gallons proof spirit, cask No. , warehouse at 
 
 for delivery to , at . 
 
 Collector ■ District, State of 
 
 Attest : 
 
 Vnited States Storekeeper. 
 
 United States Gauger. 
 
 And at the time of affixing the tax-paid stamp the 
 ganger shall, in the presence of the storekeeper, cut or 
 burn upon each cask the name of the distiller, the dis- 
 trict, the date of the pajTnent of the tax, the number of 
 proof -gallons, and the number of the stamp, which cut- 
 ting or burning shall be erased when such cask is emptied. 
 
 The last words of section 3295, namely, " by cutting or 
 burning a canceling line across such marks or brands," 
 were struck out by amendatory act of July 16, 1892. 
 
 AUfeged infringement of patent in the use of stamps. 
 (Fletcher v. Blake, 27 Int. Bev. Rec, 6; Hollister v. Bene- 
 dict and Burnham Manufacturing Co,, 113 tJ. S., 59; 31 
 Int Rev. Rec, 30.) 
 
 Regulations relative to the signing of stamps. (Regu- 
 lations No. 7, pp. 114, 117, 123, 132.) 
 
 Regulations concerning the affixing of stamps to head.'^ of 
 spirit packages. (Cir. No. 535.) 
 
 In the case of spirit pa'^kages, the heads of which are in 
 three parts, the Government stamp, or stamps, required 
 to be placed upon the same, will be affixed across a joint, 
 or joints, of the head in such a manner that each stamp 
 ~ shall rest over a joint at about the middle of the stamp, 
 and so that the center piece of the head may not be re- 
 moved without destroying the stamp or stamps. (Regu- 
 lations No, 7, p. 162.) 
 
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256 DISTILLED SPIRITS. 
 
 Regulatiims concerning reduction in proof of distilled 
 spirits in distillers' original packages. (Regulations No. 
 7, p. 194.) 
 
 The tax-paid stamps issued by collectors for the payment 
 of taxes on distilled spirits are nothing more than receipts, 
 and are worthless as receipts to other parties than those 
 to whom they are issued. (Woolner v. United States, 13 
 Ct. CIS., 3.55; 24 Int. Rev. Rec, 181.) 
 
 Tax-paid spirits stamps are nothing more than receipts 
 issued to the distiller to indicate payment of taxes on 
 distilled spirits. They do not constitute the basis of an 
 action against the Government in the hands of other than 
 the distiller. Harkins v. AVilliard, 146 Fed., 703 ; T. D. 
 1030.) 
 
 Metal .packages for containing nonbeverage distilled 
 spirits for domestic use not required to be equipped with 
 wooden surfaces for receiving brands, etc. (T. D. 2894.) 
 
 ccata™nt,^' 6™^ ^Ec. 3296. Whenever any person removes, or aids or 
 of spirits con^ abets in the removal of any distilled spirits on which the 
 pSty.*° *"' tax has not been paid, to a place other than the distillery 
 warehouse provided by law, or conceals or aids in the 
 concealment of any spirits so removed, or removes, or 
 aids or abets in the removal of any distilled spirits from 
 any distillery warehouse, or other warehouse for distilled 
 spirits authorized by law, in any manner other than is 
 provided by law, or conceals or aids in the concealment of 
 any spirits so removed he shall be liable to a penalty of 
 double the tax imposed on such distilled spirits so re- 
 moved or concealed, and shall be fined not less than two 
 hundred dollars nor more than five thousand dollars, and 
 imprisoned not less than three months nor more than 
 three years. 
 
 Sections 3256, p. 208 ; 3279, p. 226 ; 3299, p. 258 ; 3-150, p. 
 .592. 
 
 Aiding or abettins. (United States r. Blaisdell, 9 Int. 
 Rev. Rec, 82; Fed. Gas. No. 14608.) 
 
 I A conviction, under section 3296, for removing distilled 
 spirits to a place other than a distillery warehouse, or con- 
 cealing them there contrary to law, is not a bar to a convic- 
 tion under section 3281 for illicit distilling, because the 
 same are different offenses ; and the question of being twice 
 in jeopardy, within the Constitution, amendment 5, does 
 not arise. (United States v. Three Copper Stills, etc., 47 
 Fed.", 495.) 
 
 The fact that the statute makes the aiding arid abetting 
 ot another in the removal of illicit spirits a distinct offense 
 does not prevent a person so aiding and abetting from being 
 convicted as a principal in the removal, under the rule mak- 
 ing all participants in misdemeanors liable as prirrcipals. 
 (United States v. Sykes, 58 Fed., 1000.) Sec. 332, Crimi- 
 nal Code. 
 
 An indictment under this section for the concealment of 
 distilled spirits on which the tax has not been paid, removed 
 to a place other than the distillery warehouse provided by 
 law, which charges the performance of that act at a partic- 
 ular time and place, and in the language of the stat- 
 utes is sufficiently certain. (Pounds v. United States, 171 
 U. S., 35.) 
 
 See United States v. Smith, 27 Feil,., 854. 
 
 (Pilcher v. United States, 113 Fed., 248; United States v. 
 Harries, 26 Fed. Cas. 166, No. 15,309; United States v. 
 ^^^mtgim^Vymffei'i^m, No. 1.5902.) 
 
DISTILLED SPIEITS. 257 
 
 Bond may be sued for these penalties. (United States v. 
 Chouteau, 102 U. S., 603; 27 Int. Rev. Rec, 49.) 
 
 Removal without payment of tax authorizes forfeiture 
 of distillery. (United States f. One Distillery, etc., 193 
 Fed., 720.) 
 
 Section applies as well to removals from an illicit as 
 from a registered distillery. (United States v. Thompson, 
 189 Fed., 838.) 
 
 Indictment charging each element of crime enumerated 
 and substantially in language of section is sufficient. (Ros- 
 enfeld v. United States, 202 Fed., 469.) 
 
 Sec. 3297. The Secretary of the Treasury is authorized Aicohoi wuh- 
 to grant permits to any incorxjorated or chartered scien-tifeTpurposraTy 
 tific institution or college of learning to withdraw alcoholj.h™tP°||**'\^j^^ 
 in specified quantities from bond without payment of thetutions. 
 internal-revenue tax on the same, or on the spirits from 
 which the alcohol has been distilled, for the sole purpose 
 of preserving specimens of anatomy, physiology, or nat- 
 ural history belonging to such institution, or for use in its 
 chemical laboratory : Provided, That application for per- 
 mits shall be made by the president or curator of such in- 
 stitution, who shall file a bond for double the amount of 
 the tax on the alcohol to be withdrawn, with two good 
 and sufficient sureties, to be approved by the Commis- 
 sioner of Internal Revenue, and conditioned that the 
 whole quantity of alcohol so withdrawn from bond shall 
 be used for the purposes above specified, and for no other, 
 and that the said president or curator shall comply with 
 such other requirements and regulations as the Secretary 
 of the Treasury may prescribe. And if any alcohol so Pemity. 
 obtained is used by any officer, as aforesaid, of such insti- 
 tution for any purposes other than that above specified, 
 then the said officer or sureties shall pay the tax on the 
 whole, amount of alcohol withdrawn from bond, together 
 with a like amount as a penalty in addition thereto. 
 
 Penal sum of bond. (T. D. 2821.) 
 
 Tax-free alcohol, withdrawn from bond for scientific 
 purposes, subject to seizure and forfeiture if found on 
 premises of wholesale liquor dealer. (T. D. 1753.) 
 
 \_Act of May 3, 1878 {20 Stat., 48), as amended hy act Aicohoi with- 
 of July 8, 1916 {39 Stat., 3Si).] That the Secretary ofSTpurposes"™; 
 the Treasury is authorized to grant permits, as provided |^f„^t^«°J'|^ ™t 
 for in section thirty-two hundred and ninety-seven of the 
 Revised Statutes of the United States, for the withdrawal 
 of alcohol from bond, free of t^x to any scientific univer- 
 sity or college of learning created and constituted as such 
 by any State or Territory under its laws, though not in- 
 corporated or chartered, and to any hospital maintained 
 by endowment or otherwise, and not conducted for profit, 
 upon the same terms and subject to the same restrictions 
 and penalties already provided by said section thirty- 
 two hundred and ninety-seven : Provided, however. That 
 alcohol so obtained by hospitals may be used in surgical 
 operations and, except as a beverage, in the treatment of 
 1-10131° 2 17 Digitized by Microsoft® 
 
258 ' DISTILLED SPIRITS. 
 
 patients, under such regulations as the Secretary of the 
 T^reasury may prescribe: And provided further, That 
 the bond required by said section thirty-two hundred and 
 ninety-seven may be executed by an officer of such hos- 
 pital or institution or by any otlier person for it, and on 
 its behalf, with two good and sufficient sureties, upon like 
 conditions, and to be approved as by said section is pro- 
 vided. 
 
 Regulations No. 7, Fevisecl-, page 238. (T. Ds. 2496, 2745.) 
 
 See section 3464, page 606. 
 
 Alcohol is the only kind of spirit that can be used free 
 of tax for scientific purposes. ( T. D. 21664. ) 
 
 Alcohol classified' and branded as " commercial alcohol " 
 may be withdrawn from bond, free of tax, under the pre- 
 visions of section 3297, for scientific purposes. ( T. D. 1483. ) 
 
 mifstonr™*' It i^ct of June i, 19m {37 Stat., im) .] That the Com- 
 '"■"i- missioner of Internal Bevenue, with the approval of the 
 
 Secretary of the Treasury, is authorized on appeal to liim 
 m.ade to abate, remit, and refund all taxes or assessments 
 for taxes the liability for which is asserted against any 
 scientific institution or college of learning on account oi 
 any alcohol withdrawn from bond free of tax in accord- 
 ance with the provisions of sections thirty-two hundred 
 and ninety-seven and thirty-two hundred and ninety- 
 seven a, Eevised Statutes, and not used; as authorized by 
 the above-mentioned law and regulations thereunder: 
 Provided, That no assessment made of tax imposed shall 
 be abated or refunded as to any alcohol so withdrawn and 
 used for beverage purposes : And promded further, That 
 all apjplications for relief under this act shall be filed in 
 th© office of the Commissioner of Internal Eevemie witliin 
 one year from the date of the approval of tliia act,^ and no 
 liability incurred on or after March first, nineteen, hun- 
 dred and twelve, shall be relieved against hereunder. 
 
 Section 3297a, referred to in this .act, is the act of May 
 3, 1878, appearing herein immediately preeeding this act. 
 
 cer8°To letahi Sec, 3298. It shaU be lawful for any internal-revenue 
 packages on bus- officer to detain any cask or package containing, or sup- 
 picion. posed to contain, distilled spirits, when he has reason to 
 
 believe that the tax imposed by law upon the same has 
 not been paid, or that the same is being removed in vio- 
 lation of law; and every such cask or package may be 
 held by him at a safe place until it shall be determined 
 whether the property so detained is liable by law to be 
 proceeded a'gainst for forfeiture ; but such summary de- 
 tention shall not continue in any case longer than f orty- 
 erght hours without process of law or intervention of 
 Forfeiture ot t^^ officcr to whom such detention is to be reported. 
 f u¥f removed ^f^' ^^^" '^^^ distilTcd spirits found elsewhere than in 
 from 'distillery! a distillery Or distillery warehoise, not having- been re- 
 Act Feb. 18, moved therefrom according to law, shall be forfeited to 
 1875. the United States. 
 
 If^gent is,cpgniiant of^Jcaud at time of purchase, tlie 
 VrinSm'^^S(MS^^§^^n and mixture of goods by 
 
DISTILLED SPIKITS. 259 
 
 rectlflcation. (Harrington's DistlLled Spirits, 11 Wall, 
 356; 13 Int. Rev. Rec, 193.) 
 
 Burden of proof. (Sec. 3333, p. 288. United States r. 
 Eight Casks of Wliisky, 7 Int. Rev. Rec, 4.) 
 
 Sec. 3300. Whenever any store-keeper or other person y^i|^°f^fj''"p// 
 in the employment of the United States, having charge moving spirits 
 of a -bonded warehouse, removes or allows to be removed to "be'^'removSi; 
 therefrom any cask or other package, without an order ^t'^- 
 or permit of the collector, or which has not been marked 
 or stamped in the manner required by law, or removes 
 or allows to be removed any part of the contents of any 
 cask or package deposited therein, he shall be im- 
 mediately dismissed from dffice or employment, and be. ^^'^^y- 
 fined not less than five hundred dollars nor more than 
 two thousand dollars, and imprisoned not less than 
 three months nor more than two years. 
 
 Sec. 3301. {Amended hv sec. S, act of March 1, 1879 (20 storekeepers- 
 Stat., 327).-] Every storekeeper shall keep a warehouse™''"""'' ''°°''" 
 book, which shall at all times be open to the examina- 
 tion of any revenue officer, and shall enter therein an 
 account of all articles deposited in the warehouse to 
 which he is assigned, indicating in each case the date of 
 deposit, by whom manufactured or produced, the num- 
 ber and description of the packages and contents, the 
 quantities therein, the marks and serial numbers there- 
 on, a^nd by whom gauged, inspected, or weighed, and if 
 distilled spirits, 4;he number of gauge or wine gallons, of 
 proof-gallons, and of taxable gallons; and before de- 
 livering any article from the warehouse he shall enter 
 in said book the date of the permit or order of the col- 
 lector for the delivery of such articles, the number and 
 description of the packages, the marks and serial num- 
 bers thereon, the date of delivery, to whom delivered, 
 and for what purpose, which purpose shall be specified 
 in the permit or order for delivery; and in case of de- 
 livery of any distilled spirits the number of gauge or 
 wine gallons, of proof-gallons, and of taxable gallons 
 shall also be' stated; and such further particulars shall 
 be entered in the warehouse-books as may be prescribed 
 or found necessary for the identification of the pack- 
 ages, to insure the correct delivery thereof and proper 
 accountability therefor. 
 
 And every store-keeper shall furnish daily to the col- „turm"anT'r£ 
 lector of the district a return of all articles received in ports. 
 and delivered from the warehouse_ during the day pre- 
 ceding that on which the return is made, and mail at 
 the same time a copy thereof to the Commissioner of 
 Internal Eevenue, and shall, on the first Monday of everj^ 
 month, make a report in duplicate of the number of 
 packages of all articles, with the respective descriptions 
 thereof, as above provided, which remained in the ware- 
 house at the date of his last report, of all articles received 
 therein and delivered therefrom during the preceding 
 month, and of articl^'Q^eiSfi&fiiii^/cttosoSS® at the end 
 
260 DISTILLED SPIRITS. 
 
 of said month. He shall deliver one of these reports to 
 the collector having control of the warehouse, to be re- 
 corded and filed in his office, and transmit one to the 
 Commissioner of Internal Revenue, to be recorded and 
 filed in his office. 
 
 The reports made by a distiller, or by storekeepers or other 
 officers, to a collector under the internal-revenue laws are in 
 no sense public records, but are executive documents, which 
 the United States in its sovereign capacity has acquired for 
 the sole purpose of administering its own governmental 
 affairs, and are its private property, the custody and use 
 of which the Secretary of the Treasury has the lawful 
 authority to control by proper regulations. (In re Comin- 
 gore, 96 Fed., 552 ; T. D. 21584. Boske v. Comingore, 177 U. 
 S., 459; T. D. 104.) 
 
 to ^have'^'chaS Sec. 3302. The store-keeper assigned to any distillery 
 of distillery and warehouse sliallj in addition to the duties required of him 
 maTeri'ai's°""uscd, fis store-kcepcr in charge of a warehouse, keep in a book. 
 ''■^ to be provided for that purpose, and in the manner pre- 
 
 scribed by the Commissioner of Internal Eevenue, a daily 
 account of all the meal and vegetable productions or other 
 substances brought into said distillery, or on said premises, 
 to be used for the purpose of producing spirits, from whom 
 purchased, and when delivered at said distillery; of the 
 kind and quantity of all fuel used, and from whom pur- 
 chased ; of all repairs made on said distillery, and by whom 
 and when made ; of the names and places of residence of 
 all persons employed in or about the distillery; of the 
 materials put into the mash-tub or otherwise used for 
 the production of spirits ; of the time when any f erment- 
 ing-tub is emptied of ripe mash or beer, recording the 
 same by the number painted on said tub ; and of all spirits 
 drawn off from the receiving-cistern, and the time when 
 the same were drawn off. 
 
 Examination of gi^ain distilleries and duties of examining 
 officers. (Cir. No. 612 ; T. D. 439.) 
 
 Collectors are instructed to give personal attention to 
 records kept by storekeepers and storekeeper-gangers, par- 
 ticularly grain account and temperature aftd gravity re- 
 ports. (T. D. 1628.) 
 
 Distill er'3 Qec. 3303. Evcry person who makes or distills spirits, 
 be°made? "^° ° or owns ally still, boiler, or other vessel used for the pur- 
 pose of distilling spirits, or who has such still, boiler, or 
 other vessel so used under his superintendence, either as 
 agent or owner, or wh5 uses any such still, boiler, or other 
 vessel, shall from day to day make, or cause to be made, 
 in a book or books, to be kept by him in such form as the 
 Commissioner of Internal Revenue may prescribe, a true 
 and exact entry of the kind of materials, and the quantity 
 in pounds, bushels, or gallons'^ purchased by him for the 
 production of spirits, from whom and when purchased, 
 and by what conveyance delivered at said distillery, the 
 amount paid therefor, the kind and quantity of fuel pur- 
 chased for use in the distillery, and from whom purchased, 
 the amoun£)]^^etPB^W/&FdS©ite ^^r use in the distillery, 
 
DISTILLED SPIRITS. 261 
 
 the repairs placed on said distillery or distilling-ap- 
 paratus, the cost thereof, and by whom and when made, 
 and of the name and residence of each person employed 
 in or about the distillery, and in what cjipacity employed. 
 And in another book he shall make like entry of the 
 quantity of grain or other material used for the production 
 of spirits, the time of day when any yeast or other com- 
 position is put into any mash or beer for the purpose of 
 exciting fermentation, the quantity of mash in each tub, 
 designating the same by the number of the tub, the num- 
 ber of dry inches, that is to say, the number of inches be- 
 tween the top of each tub and the surface of the mash 
 or beer therein at the time of yeasting, the gravity- and 
 temperature of the beer at the time of yeasting, and on 
 every day thereafter its quantity, gravity, and temperature 
 at the hour of twelve meridiap; also, of the time when 
 any fermenting-tub is emptied of ripe mash or beer, the 
 niimber of gallons of spirits distilled, the number of 
 gallons placed in the warehouse, and the proof thereof, 
 the number of gallons sold or removed, with the proof 
 thereof, and the name, place of business, and residence of 
 the person to whom sold. 
 
 Indictment for making false entries held sufficient. 
 (Wood v. United States, 204 Fed., 55; T. D. 1836.) 
 Directions tor tailing gravity. (T. D. 1750; T. D. 1S40.) 
 
 Sec. 3304. The books of every distillery hereinbefore „p^°°fo ^".p^! 
 recfuired shall always be kept at the distillery and be "o" , ^"^ ?'«- 
 
 'i 1 Li • j_- i< Of' 1 served two yeara. 
 
 always open to the inspection of any revenue omcer, and, 
 when filled up, shall be preserved by the distiller for a 
 period of not less than two years thereafter, and whenever 
 required shall be produced for the inspection of any rev- 
 enue officer. 
 
 The books of a distiller required by law to be kept can be 
 seized and used as evidence. " The United States have the 
 right to demand their production without judicial process 
 for all purposes connected with the revenue liabilities of 
 the distillers or the distilleries." (Waite, O. J., in the 
 United States Circuit Court. Eastern District of Virginia. 
 United States r. A Distillery at Petersburg, 1 Hughes, 533 ; 
 22 Int. Rev. Rec, 195;. Fed. Oas. No. 14961.) 
 
 Distillers' books. Every book kept by a distiller is, to a 
 certain extent, a Government book, and may, under the law, 
 be rightfully examined by the revenue officers to determine 
 its correctness. (United States v. Parker, Mason & Co., 
 and Roelle, Junker & Co., 21 Int. Rev. Rec, 245 ; 6 Biss., 
 350; Fed. Cas. IKo. 15735.) 
 
 Private books and papers seized at distillery can be used 
 as evidence in proceedings to forfeit distillery. (Dobbins v. 
 United States, 24 Int. Rev. Rec, 22; 96 U. S., 395.) 
 
 Seizure of private papers, page 601. 
 
 Sec. 3305. Whenever any false entry is made in, or any J^^-^ ^^'^^^^ 
 entry required to be made is omitted from, either of the °;„^ J ^.^^'^tr 
 said books mentioned in the two preceding sections, with 
 intent to defraud or to conceal from the revenue officers 
 any fact or particular required to be stated and entered in 
 either of said books, of^fe/feMefeljdMcrefetftifce thereto; or 
 
262 DISTILLED SPIKITS. 
 
 any distiller as aforesaid omits or refuses to provide either 
 of said books, or cancels, obliterates, or destroys any part 
 of either of such books, or any entry therein, with intent 
 ■ to defraud, or permits the same to be done, or such books, 
 or either of them, are not produced when required by any 
 revenue officer, the distillery, distilling-apparatus, and the 
 lot or tract of land on which it stands, and all personal 
 property on said premises used in the business there car- 
 ried on, shall be forfeited to the United States. And 
 every person who makes such false entry, or omits to make 
 any entry hereinbefore required to be made, with intent 
 aforesaid, or who causes or procures the same to be done, 
 or fraudulently cancels, obliterates, or destroys any part 
 of said books, or any entry therein, or willfully faik to 
 produce such books, or either of them, shall be fined not 
 less than five hundred dollars, nor more than five thousand 
 dollars, and imprisoned not less than six months, nor 
 more than two years. 
 
 See United States v. One Water Cask, 10 Int. Rev. Rec, 
 93; United States v. Stowell, 133 U. S., 1; 36 Int Rev. 
 Rec, 30.) 
 
 Indictment for making false entries sufficient. (Wood v. 
 United States, 204 Fed., 55; T, D. 1836.) 
 
 wei^hte"o? meas^ 8^^. 3306. Evcry person who knowingly uses any false 
 nres; penalty, wcights or mcasurcs in ascertaining, weighing, or meas- 
 uring the quantities of grain, meal, or vegetable njaterials, 
 molasses, beer, or other substances to be used for distilla- 
 tion, shall be fined not less than five hundred dollars lior 
 ^ more than five thousand dollars, and imprisoned not less 
 
 Using unregis- than ouc year nor more than three years. Any person 
 *™ait "^''^"^^^ '■ ■who uses any molasses, beer, or other substance, whether 
 fermented on the premises or elsewhere, for the purpose 
 of producing spirits, before an account of the same is 
 registered in the proper book provided for that purpose, 
 shall forfeit and pay the sum of one thousand dollars for 
 each offense so committed. 
 
 Distiller's bond, suit to recover penalty. (United 
 States V. Zemel, 137 Fed. 989.) 
 
 turns'^'produc: ^'^'^- ^307. On the first day of each month, or within 
 tion to collector, five days thereafter, every distiller shall render to the 
 collector pf the district an account in duplicate, taken 
 from his books, stating the quantity and kind of ma- 
 terials used for the production of spirits each day, and 
 the number of wine-gallons and of proof-gallons of 
 spirits produced and placed in warehouse. And the dis- 
 tiller or the principal manager of the distillery shall 
 make and subscribe the following oath, to be attached 
 to said return : 
 
 I, , distiller (or principal manager, as the case 
 
 may be) of the distillery at , do solemnly swear that, since 
 
 the date of the last return of the business of said distillery, 
 dated day of to day of , both in- 
 clusive, there was produced in said distillery, and withdrawn and 
 
 Digitized by Microsoft® 
 
DISTILLED SPIRITS. 263 
 
 placed in warehouse, the number of wine-gallons and proof -gallons 
 of spirits ; and there were actually mashed and used in said dis- 
 tillery, and consumed in the production of spirits therein, the 
 several quantities of grain, sugar, molasses, and other materials 
 respectively hereinbefore specified, and no more. 
 
 One of the said duplicate returns shall be transmitted 
 by the collector to the Commissioner of Internal Rev- 
 enue. 
 
 Fruit distillers' returns, Form 1.5. (Regulations No. 7, 
 p. 215.) 
 
 Sec. 3308. Every distiller shall make a return of the tuni'™!''' t h'= 
 number of barrels of spirits distilled by him, counting number of bar- 
 forty gallons of proof-spirits to the barrel, whenever '^'^''' distiUfd. 
 such return is demanded by the collector of the district. 
 
 Sec* 3309. [ATneTided hy act of March 3, 1876, ch. 131^ 
 sec. m {18 Stat., U9) .] On the receipt of the distil- ^^SiSi-of ^- 
 ler's return in each month, the Commissioner of Internal tmers' return^, 
 Eevenue shall inquire and determine whether the distil- ^=='=^=">™'^' "^t^- 
 ler has accounted for all the grain or molasses used, and „ ., , 
 
 ,,, .. ., Tii*'i T 1 Capacity tax. 
 
 all the spirits produced by him m the preceding month. 
 If he is satisfied that the distiller has reported all the 
 spirits produced by him, and the quantity so reported 
 is found to be less than eighty per centum of the produc- 
 ing-capacity of the distillery as estimated according to 
 law, he shall make an assessment for such deficiency at 
 the rate of ninety cents for every proof -gallon. In de- niade"by°se™\"2, 
 termining the quantity of grain used, fifty-six "pounds ^g'^y'j (^a^'stat^; 
 shall be accounted as a bushel; and if the Commissioner ^02). 
 finds that the distiller has used any grain or molasses in 
 excess of the capacity of his distillery as estimated ac- 
 cording to law, he shall make an assessment against the 
 distiller at the rate of ninety cents for every proof-gal- Ma?.^°' it^' iml 
 Ion of spirits that should have been produced from the i^^entoeit.*"^^" 
 grain or molasses so used in excess, which assessment 
 shall be made whether the quantity of spirits reported is 
 equal to or exceeds eighty per centum of the producing- 
 capacity of the distillery. If the Commissioner finds 
 that the distiller has not accounted for all the spirits 
 produced by him, he shall, from all the evidence he can 
 obtain, determine what quantity of spirits was actually ^^^ 
 
 produced by such distiller, and an assessment shall be Ma'r^°' 3, ' 1875 - 
 made for the difference between the quantity reported ii^Jf^t't.""'" 
 and the quantity shown to have been actually produced, 
 at the rate of ninety cents for every proof -gallon : 
 Provided, That the actual product shall be assumed to 
 be in no case less than eighty per centum of the produc- 
 ing-capacity of the distillery as estimated according 
 to law. All assessments made under this section shall be 
 a lien on all distilled spirits on the distillery premises, 
 the distillery used for distilling the same, the stills, ves- 
 sels, fixtures, and tools therein, the tract of land whereon 
 the said distillery is located, and any building thereon, 
 
 Digitized by Microsoft® 
 
264 DISTILLED SPIRITS. 
 
 from the time such assessment is made until the same 
 shall have been paid. 
 
 When a fruit distiller has received pomace, in the ab- 
 sence of any explanation otherwise accounting for it, it 
 is justifiable to infer that the material was used In the pro- 
 duction of spirits at the rate of 1 gallon to 14 gallons of 
 pomace. (United States v. Cole, 134 Fed., 697; T. D. 786..) 
 
 It is well settled that a distiller is legally liable to a tax 
 on his entire actual product, and on a quantity equal at 
 least to 80 per centum of the producing capacity of his 
 distillery as fixed by the survey, however small the actual 
 product may be. (United States v. Singer, 15 Wall., Ill; 
 17 Int. Rev. Rec, 9. Collector v. Beggs, 17 Wall., 182; 17 
 Int. Rev. Rec, 164. United States v. Ferrary, 93 U. S. 625 ; 
 22 Int. Rev. Rec., 394.) 
 
 Construction of the statute and method of computation. 
 (StoU V. Pepper, 97 U. S. (7 Otto), 438; 25 Int. Rev. Rec, 
 2. AVeitzel v. Rabe, 103 U. S., 340. See also United States 
 V. Nissley, 1 Dillon, 586; 13 Int. Rev. Rec, 174; Fed. Cas. 
 No. 1.5893; Pahlman v. Collector, 20 Wall., 180; 19 Int. 
 Rev. Rec, 171; Turner v. Williams, 18 Int. Rev. Eec, 6; 
 Fed. Cas. No. 14265.) 
 
 The producing capacity of a distillery, and not the 
 amount of spirits produced, is made the measure of tax- 
 ation. (United States v. Halloran, 14 Blatch,.l; Fed. Cas. 
 No. 15, 286.) ' 
 
 In a suit for taxes under section 3309 the original assess- 
 ment list signed by the Commissioner is evidence of assess- 
 ment, and the original report of survey and certificate of 
 collector of delivery of triplicate copy to distiller are com- 
 petent evidence. (United States v. Bristow, 20 Fed., 378.) 
 
 Distiller's bond liable for tax. (United States Fidelity 
 and Guaranty Co. v. United States, 201 Fed., 91; T. D. 
 1824.) 
 
 If a distiller uses material for distillation in excess of 
 the estimated capacity of his distillery according to the 
 survey, but, in the regular course of his business, pays the 
 tax upon his entire production, he can not be again assessed 
 the regular gallon tax on the spirits which the excess of 
 material used should have produced. (Runkle v. Citizens' 
 Insurance Co. of Pittsburg, Pa., 6 Fed., 143.) 
 
 The provision under this section that if the Commissioner, 
 of Internal Revenue, on making a monthly examination of 
 a distiller's return, " finds that the distiller has used any 
 grain or molasses in excess of the capacity of his distillery 
 as estimated according to law, he shall make an assessment 
 against the distiller," etc., refers to the real average spirit-,; 
 producing capacity of the distillery, and not to a fictitious 
 capacity for any particular day or days. (Chicago Dis- 
 tilling Co. r. Stone, 140 U. S., 647 ; 37 Int. Rev. Rec, 206.) : 
 
 See on this section Stowell v. Williams, jr., 17 Int. Rev. 
 Rec, 38; Fed. Cas. No. 13515. Daley v. United States, 16 
 Int. Rev. Rec, 147 ; Fed. Cas. No. 3542 ; Hartman v. Bean, 
 99 U. S., 393 ; 25 Int. Rev. Rec, 141. 
 
 The distiller Is required to produce at least 80 per cent 
 of the producing capacity of his distillery. If he uses de- 
 fective fruit or material from which he can not produce 80 
 per cent, he does so with full knowledge that he will be 
 assessed on the basis of 80 per cent of his producing ca- 
 pacity. (United States v. Ball, 1908, 163 Fed., 504.) . ; 
 
 ethyrScohoL °* ^Ec. 602. [Act of Fetruary U, 1919 {40 Stat, 1057).] 
 The Commissioner, with the approval of the Secretary, 
 may by regulations exempt distillers of ethyl alcohol, for 
 use in the pfgjfeg^cJSy ftl'c?WSSfl/|f®ns of war, or for other 
 
DISTILLED SPIRITS. 265 
 
 nonbeverage purposes, from so much of the provisions 
 of sections * * * 3309 of the Revised Statutes, and 
 Acts amendatory thereof, * * * as, in his judgment, 
 may be expedient: Provided^ That the bond prescribed 
 m section 3260 of the Revised Statutes shall, in the cases 
 herein provided, be in such sum and contain such further 
 conditions as the Commissioner may require. 
 
 Sec. 6. lAct of March 1; 1879 {20 Stat., 327) , amended Relief from 
 ly sec. 8, act of May 28, 1880 {21 Stat., US).] That alSdet etc.! 
 vchenever, under the provisions of section thirty-three '° ^"'^^^^ '=^=''' 
 hundred and nine of the Revised Statutes, an assessment 
 -shall have been made against a distiller for a deficiency 
 in not producing eighty per centum of the producing ^ 
 capacity of his distillery as established by law, or for 
 the tax upon the spirits that should have been produced 
 from the grain, or fruit, or molasses found to have been 
 used in excess of the capacity of his distillery for any 
 month, as estimated according to law, such excessive use 
 of grain, or fruit, or molasses having arisen from a fail- 
 ure on the part of the distiller to maintain the capacity 
 required by law to enable him to use such grain, or fruit, 
 or molasses without incurring liability to such assess- 
 ment, and it shall be made to appear to the satisfaction 
 of the Commissioner of Internal Revenue that said de- 
 ficiency, or that said failure, whereby such excessive use 
 of grain, molasses, or fruit arose, was not occasioned by 
 any want of diligence or by any fraudulent purpose, on 
 the part of the distiller, but from misunderstanding as 
 to the requirements of the law and regulations in that 
 respect or by reason of unavoidable accidents, then, and 
 in such case, the Commissioner of Internal Revenue, sub- 
 ject to regulations prescribed by the Secretary, of the 
 Treasury is authorized, on appeal made to him, to remit 
 or refund such tax, or such part thereof as shall appear to 
 him to be equitable and just in the premises. 
 
 And the Commissioner of Internal Revenue upon the ^^ ^'^^^'Jf^"*^^ *™ 
 production to him of satisfactory proof of the actual de- Saity." 
 struction, by accidental fire or other casualty and with- 
 out any fraud, collusion, or negligence of the distiller of 
 any spirits in process of manufacture or distillation, or 
 before removal to the distillery warehouse, shall not 
 assess the distiller for a deficiency in not producing 
 eighty per centum of the producing capacity of his dis- 
 tillery as established by law when the deficiency is oc- 
 casioned by such- destruction, nor shall he, in such case, 
 assess the tax on the spirits so destroyed : 
 
 Provided, That no tax shall be remitted or refunded j^^Di=™er._^ of 
 under the provisions of this section upon any assessment irom such assess- 
 made prior to January first, eighteen hundred and SJ."'=' "^"p'- 
 
 seventy-four: , ,, , , -, 
 
 Provided further, That no assessment shall be charged 
 
 against any distiller of fruit for any failure to maintain 
 
 the required capacity0,-^^j^|^/^,-p9gg^sioner shall, 
 
266 DISTILLED SPIRITS, 
 
 within six months after his receipt of each monthly re- 
 port notify such distiller of such failure so to maintain 
 the required capacity. 
 
 United States r. Ball (O. C. A.), 163 Fed., 504. 
 
 No distiller of fruit brandy to be reported for assess- 
 ment on account of brandy produced and unaccounteB for 
 until determination of taxes due under section 3309, Re- 
 vised Statutes, nor until due notice is given tbe distiller 
 as required by regulations. (T. D., 1555.) 
 
 Statutory relief in cases of assessments under this sec- 
 tion. (Regulations No. 7, revised, 1914, pp. 86-92.) 
 
 Kate of tax. 3^0. 60. [Act of AuQUst 27, 18H {28 Stat., 509).] 
 That all assessments made under the provisions of sec- 
 tion, thirty-three hundred and nine of the Revised Stat- 
 utes of the United States, and Acts amendatory .thereof, 
 siiall be at the rate of tax imposed by this Act on each 
 proof gallon. 
 Fermenting gjjc. 3310. [Amended ly act of February ^7, 1877 (19 
 
 ^ Stat. 21fi) , and sec. 7, act of May £8] 1880 {21 Stat. 145) .] 
 
 The first fermenting period of every distiller shall be 
 taken to begin on the day the distiller's bond is approved ; 
 and every distiller at the hour of twelve meridian on the 
 last day of such fermenting period, or at the same hour 
 on any previous day of such fermenting period on which 
 spirits are distilled, shall be deemed to have commenced, 
 and thereafter to be continuously engaged in, the pro- 
 duction of distilled spirits in his distillery, except in the 
 intervals when he shall suspend work as hereinafter pro- 
 vided. 
 
 ^^suspension o£ Any distiller desiring to suspend work in his distillery 
 maj^ give notice in writing to the collector of the district, 
 stating when he will suspend work ; and on the day men- 
 tioned in said notice said collector or one of his deputies 
 shall, at the expense of the distiller, proceed to fasten 
 securely the door of every furnace of every still or boiler 
 in said distillery, by locks and otherwise, and shall adopt 
 such other means as the Commissioner of Internal Reve- 
 nue may prescribe to prevent the lighting of any fire in 
 such furnace or under such stills or boilers. The locks 
 and seals, and other materials required for such purpose, 
 shall be furnished to the collector by the Commissioner of 
 Internal Revenue, to be dvilj accounted for by said col- 
 lector. Such notice by any distiller, and the action taken 
 by the collector in pursuance thereof, shall be immedi- 
 ately transmitted to the Commissioner of Internal Reve- 
 nue. No distiller, after having given such notice, shall, 
 after the time stated therein, carry on the business of a 
 distiller on said premises until he gives another notice in 
 writing to said collector, stating the time when he will 
 resume work; and at the time so stated for resinning 
 work the collector or one of his^ deputies shall attend at 
 the distillery to remove said locks and other fastenings; 
 and thereupon, and not before, work may be resumed in 
 said distillery, which fact shall be immediately reported 
 Digitized by Microsoft® 
 
DISTILLED SPIRITS. 267 
 
 to the collector of the district, and by him transmitted 
 
 to the Comihissioner of Internal Revenue. 
 
 '■ Every distiller who, after the time fixed in said notice tus^S'^a ft e"- 
 
 declaring his intention to suspend work, carries on the ™tiee of suspeV- 
 
 business of a distiller on said premises, or has mash, wort, ^'°"' 
 
 or beer in his distillery, or on any premises connected 
 
 therewith, or has in his possession or under his control any 
 
 mash, wort, or beer, with intent to distill the same on said 
 
 premises, shall incur the forfeitures and be subject to the gaeo™"'^' "'"'■ 
 
 same punishment as provided for persons who carry on 
 
 the business of a distiller without having given the bonds 
 
 required by law. 
 
 But nothing in this section shall be held to apply to suspensions 
 suspensions caused by unavoidable accident ; and the Com- vo?dIbie'"'a ""1- 
 missioner of Internal Revenue shall prescribe regulations '^^yl;.^^! amend- 
 to govern such cases of involuntary suspension. ment. Act Feb. 
 
 ^ •' '■ 21, 1877. 
 
 A distiller has one full fermenting period to prepare his 
 mash or beer for- distillation, and the liability to the 80 per 
 cent capacity commences on the last day of such period, or 
 on any previous day on which spirits are distilled. (Re^i- 
 lations No. 7, revised, p. 57.) 
 
 When a nominal change shall occur at a distillery, by 
 reason of a change in the name or style in which the opera- 
 tions at the distillery are conducted, it will not be required 
 that the business of producing spirits shall be completely 
 y finished and operations suspended by the distiller desiring 
 
 to change his name or style before the business shall bo , 
 
 undertaken or begun by him under a different name or style ; 
 nor will he be required to give notice of suspension upon 
 Form 124. (Regulations No. 7, p. 11.) 
 
 Sec. 3311. Whenever any distiller desires to reduce the ^ap^city!""" ° *- 
 producing-capacity of his distillery, he shall give notice of ' 
 
 such intention, in writing, to the collector, stating the 
 quantity of spirits which he desires thereafter to manu- 
 facture or produce every twenty-four hours, and there- 
 upon said collector shall proceed, at the expense of the 
 distiller, to reduce and limit the producing-capacity of the 
 clistillery to the quantity stated in said notice, by placing 
 upon a sufficient number of the fermenting-tubs close- 
 fitting covers, which shall be securely fastened by nails, 
 seals, and otherwise, and in such manner as to prevent the 
 use of such tubs without remo\'ing said covers or breaking 
 said seals, and shall adopt such other precautions as may 
 be prescribed by the Commissioner of Internal Revenue 
 to reduce the capacity of said distillery. 
 
 And every person who breaks, injures, or in any manner ^.^t a m p-jng 
 tampers with any lock, seal, or other f astenmg applied to penalty. 
 any furnace, still, or fermenting-tub, or other vessel, m 
 pursuance of the provisions of law, or who opens or 
 attempts to open any door, tub, or other vessel, which is 
 locked or sealed, or otherwise closed or fastened as herein 
 provided, or who uses any furnace, still, or fermentmg- 
 tub or other vessel, which is so locked, sealed, or fastened, 
 shall be deemed guilty of a felony, and shall be fined not 
 less than one thousand dollars^nor more than five thou- 
 Digitized by Microsoft® 
 
268 DISTILLED SPIKITS. 
 
 sand dollars, and imprisoned for not less than one year 
 nor more than three years. (Sec. 3268, R. S.) 
 Weitzel v. Rabe, 103 U. S., 340. 
 
 prepar'?d"'and°i^ Sec. 3312. All stamps required for distilled spirits shall 
 ™«<'- be engraved in their several kinds in book-form, and shall 
 
 be issued by the Commissioner of Internal Revenue to any 
 collector, upon his requisition, in such numbers as may be 
 necessary in the several districts. Each stamp shall have 
 an engraved stub attached thereto, with a number thereon 
 corresponding with an engraved number on the stamp, 
 and the stub shall not be removed from the book. And 
 there shall be entered on each stub such memoranda of the 
 contents of its corresponding stamp as shall be necessary 
 to preserve a perfect record of the use of such stamp when 
 detached. 
 
 Traffic in and possession of internal-revenue stamps. (11 
 Int. Rev. Rec, 57.) 
 Counterfeiting stamps. (Sec. 5414, Appendix, p. 6S0.) 
 
 of.^how^'used?™ Sec. 3313. On every stamp for the payment of tax on 
 distilled spirits there shall be engraved words and figures 
 representing a decimal nimiber of gallons, and on the stub 
 corresponding to such stamp there shall be engraved a 
 similar number of gallons, and between the stamp and the 
 stub, an4 connecting them, shall be engraved nine cou- 
 pons, which, beginning next to the stamp, shall indicate 
 in succession the several numbers of gallons between the 
 number named in the stamp and the decimal number next 
 above. And whenever any collector receives the tax on 
 the distilled spirits contained in any cask, he shall detach 
 from the book a stamp representing the denominate 
 quiintity nearest to the quantity of proof -spirits in such 
 cask, as shown by the ganger's return, with such number 
 of the coupons attached thereto as shall be necessary to 
 make up the whole number of proof -gallons in said cask ; 
 * * * All unused coupons shall remain attached to the 
 marginal stub, and no coupon shall have any value or 
 significance when detached from the stamp and stub. 
 And the tax-paid stamps with the coupons may denote 
 such number of gallons, not less than twenty [ten] , as the 
 Commissioner of Internal Revenue may deem advisable. 
 
 Part indicated by * * * obsolete. (Sec. 48, act of 
 August 28, 1894. See sec. 3251, p. 192.) 
 
 Fractional gallons. (See sec. 48, act of August 27, 1894; 
 p. 193.) 
 
 The act of Jlay 28, 1880, amending section 3287, page 234, 
 provided for original packages of a distiller of not less than 
 10 wine gallons' capacity, thus modifying the last clause of 
 the above section without specifically amending It. 
 
 The tax-paid stamps issued by collectors for the payment 
 of taxes oil spirits are nothing more than receipts, and are 
 worthless as receipts to other parties than those to whom 
 they are issued. (A. & S. Woolner v. United States, 18 Ct. 
 CIS. 355; 24 Int. Rev. Rec, 181.) 
 
 Tax-paid spirit stamps containing coupons for the frac- 
 
DISTILLED SPIKITS. 
 
 269 
 
 Accountability 
 
 fqr stamp-bookfl. 
 
 Commissions. 
 
 Sec. 3314. [Amended by ser. 5, act of March 1, 1879 {20 
 Stat., 327) , and hy sec. 16, act of May 28, 1880 {21 Stat., 
 lJlt5).\ The books of tax-paid stamps issued to any col- 
 lector shall be charged to his account at the full value of 
 the tax on the number of gallons represented on the 
 stamps and coupons contained in said books; and every 
 collector shall make a monthly return to the Commis- 
 sioner of Internal Revenue of all tax-paid stamps issued 
 by him to be affixed to any cask or package containing dis- 
 tilled spirits on which the tax has been paid, and account 
 for the amount of the tax collected; and when the said 
 collector returns to the Commissioner of Internal Reve- 
 nue any book of marginal stubs, which it shall be his duty 
 to do as soon as all the stamps contained in the book 
 when issued to him have been used, and accounts for the 
 tax on the number of gallons represented on the stamps 
 and coupons that were contained in said book, there shall 
 be allowed to the collector a commission of one-half of 
 one per centum on the amount of such tax, in addition to 
 any other commission by law allowed : Provided, That the 
 total net compensation of collectors as fixed by this title 
 shall not be thereby increased. All stamps relating to 
 distilled spirits, other than the tax-paid stamps, shall be 
 charged to collectors; arid the books containing such 
 stamps may be intrusted by any collector to the gauger 
 of the district, who shall make a daily report to the col- 
 lector of all such stamps used by him and for whom used ; 
 and when all the stamps contained in any.such book have 
 been issued, the gauger of the district shall return the 
 book to the collector, with all the marginal stubs therein : 
 Provided, That all export stamps issued to collectors 
 shall be charged to them as representing the value of ten 
 cents for each stamp, and they shall collect the amount 
 due for such stamps at the rate of ten cents for each stamp 
 issued in such manner and at such time as the Commis- 
 sioner of Internal Revenue may prescribe, and the 
 Commissioner may, in his discretion, make assessment 
 therefor. 
 
 The stamps having a money value are as follows, 7iz : 
 Tax-paid, $1.10 per gallon; case stamps for spirits bottled 
 in bond, 10 cents each, and exportation stamps for spirits 
 in original casks, 10 cents each, and for spirits in wooden 
 packages, each containing two or more metallic cans, each 
 having a capacity of not less than 5 gallons wine measure, 
 5 cents each. (Regulations No. 7, revised, p. 112, sec. 3330, 
 p 281 ; act Mar. 8, 1897, p. 291 ; act Feb. 21, 1899, p. 234. 
 
 In United States i'. Landram (118 U. S., 81; 32 Int. Kev. 
 Rec 151) it was held t;hat the right of collectors to commis- 
 sions on taxes collected by the sale of tax-paid spirit stamps 
 was not taken from them by section 2, act of March 1, 1879. 
 (Sec. 3148, amended, p. 76.) , ^ ,. 
 
 Circular No. 306. Collectors' commissions on sale of tax- 
 paid spirit stamps. (32 Int Rev. Rec, 325.) 
 Sec. 606. [Act of Fehruary 2h, 1919 {Ifi Stat., 1057). ^ ,.Jt-p^ 
 That hereafter collectors shall not furnish wholesale 
 Digitized by Microsoft® 
 
 Export stamps. 
 
 for 
 spirits. 
 
270 DISTILLED SPIRITS. 
 
 liquor dealer's stamps in lien of and in exchange for 
 stamps for rectified spirits unless the package covered by. 
 stamp for rectified spirits is to be broken into smaller 
 packages. 
 of °tlm°"""''™^ ^^^® Commissioner, with the approval of the Secretary, 
 s amps. ^^ authorized to discontinue the use of the following 
 
 stamps whenever in his judgment the interests of the 
 GoA^ernment will be subserved thereby: 
 
 Distillery warehouse, special bonded warehouse, special 
 bonded rewarehouse, general bonded warehouse, general 
 bonded retransfer, transfer brandy, export tobacco, ex- 
 port bigars, export oleomargarine, and export fermented- 
 liquor stamps. 
 
 The use of distillery warehouse, special bonded ware- 
 house, special bonded rewarehouse, general bonded ware- 
 house, general bonded retransfer, and transfer brandy 
 stamps discontinued on and after November 1, 1917. (T. D. 
 2548.) 
 
 tax^plid^'Tp^rits^ S^^- ^^^^- [Amended by sec, S, act of March 1, 1879 
 tobacco, cigarsi [20 Stut., 327) and hy sec. 1315, -act of February 2Jt, 
 Tnd Selted-?^-?^ {Jfi Stoi., 1057).-] The Commissioner of Internal 
 liquors. • Revenue may, under regulations prescribed by him with 
 the approval of the Secretary of the Treasury, issue 
 stamps for restamping packages of distilled spirits, to- 
 bacco, cigars, snuff, cigarettes, fermented liquors, and 
 wines which have been duly stamped but from wliich 
 the stamps have been lost or destroyed by unavoidable 
 accident. 
 
 Redemption of stamps (p. 5-52). 
 
 Restamping packages of spirits, tobacco, cigars, snufE, 
 cigarettes, fermented liquors, and denatured alcohol. (Cir. 
 No. 705; T. D. 1226; T. D. 1672; T. D. 1869.) 
 
 Packages of fermented liquors may be restamped under 
 direction of the collector. (T. D. 1672.) 
 
 Amending regulations No. 7, concerning restamping of 
 packages of spirits from which stamps have been lost or 
 destroyed by unavoidable accident. (T. D., 1532; Regula- 
 tions No. 7, revised, 1914, pp. 114, 115. ) 
 
 or °^ssuin/''°?; ®^*^- 3316. Wlieuever any revenue officer affixes or can- 
 permitting use of eels, or causes or permits to be affixed or canceled, any 
 stamps contrary ^^^^^^ relating to distilled spirits provided for by law, 
 in any other manner or in any other place, or issues the 
 same to any other person than as provided by law, or 
 by regulation made in pursuance thereof, or knowingly 
 affixes, or permits to be affixed, any such stamp to any 
 cask or package of spirits of which the whole or any 
 part has been distilled, rectified, compounded, removed, 
 or sold, in violation of law, or which has in any manner 
 escaped payment of tax due thereon, he shall, for every 
 Penalty. such offensc, be fined not less than five hundred dollars 
 nor more than three thousand dollars, and be imprisoned 
 for not less than six months nor more than three years. 
 tatfon'^stfmp^on Sec. 17. iAct February 8, 1875 \18 Stat., 307) .^ That 
 Sfc'dTirits^''^-^ any person shall affix, or cause to be affixed, to or 
 '"'" '■ upon any g^^y^g-^^l^^j^g^ning, or intended to con- 
 
DISTILLED SPIRITS, 271 
 
 tain, distilled spirits, any imitation stamp or other en- 
 graved, printed, stamped, or photographed label, device, 
 or token, whether the same be designed as a trade mark, 
 cantion notice, caution, or otherwise, and which shall be 
 in the similitude or likeness of, or shall have the resem- 
 blance or general appearance of, any internal-revenue 
 stamp required by law to be affixed to or upon any cask 
 or package containing distilled spirits, he shall, for 
 each offense, be liable to a penalty of one hundred dol- remity. 
 lars, and, on conviction, shall be fined not more than one 
 thousand dollars, and imprisoned not more than three 
 years, and the cask or package with its contents shall 
 be forfeited to the United States. 
 
 Tlie statute prohibits the use of any device in the simili- 
 tude of, or having the general appearance of, a stamp re- 
 quired by the internal-revenue laws for distilled spirits. 
 The Commissioner of Internal Revenue has not adopted a 
 standard as to what devices of this kind are allowable 
 and what are prohibited. (T. T>. 507; T. D. 607; Regula- 
 tions No. 7, revised, p. ISl.) 
 
 ■\^'hoIesate liquor dealers and rectifiers who place such 
 stamps on packages containing distilled spirits must do so 
 at their own risk if they are in any wise in the simili- 
 tude of stamps required for spirits. (T. D. 559; Regula- 
 tions, No. 7, revised, p. 132.) 
 
 Sec. 3317. [Amended hy sec. S, act of March 1, 1879 {20 ^Rcctmers' rc- 
 Staf., 327).] That on or before the tenth day of each '"^'^" 
 ra-onth every person engaged in rectifying or compounding 
 distilled spirits shall make, in such form as may be pre- 
 scribed by the Commissioner of Internal Revenue, a return 
 to the collector of the district, showing the quantity of 
 spirits I'eceived for rectification, and from; whom re- 
 ceived, the quantity dumped for rectification, the quantity 
 rectified, the quantity removed after rectification during 
 the preceding month, and giving such other information 
 as may be required by the Commissioner of Internal 
 Revenue, such return to be made in duplicate and sworn 
 to bA' the rectifier; and the collector shall forward one 
 of such returns to the Commissioner of Internal Revenue. 
 
 Every j)erson who engages in, or carries on, the business tgjjl?';*''^''^^ j^: 
 of a rectifier with intent to defraud the United States of fraun. 
 the tax on the spirits rectified by him, or any part thereof, 
 or with intent to aid, abet, or assist any person or persons 
 in defrauding the United States of the tax on any distilled 
 spirits, or who shall purchase or receive or rectify any dis- 
 tilled spirits which have been removed from a distillery to 
 a place other than the distillery-warehouse pr6vided by 
 law, knowing or having reasonable grounds to believe that 
 the tax on sa,id spirits, required by law, has not been paid, 
 shall, for every such offense, be fi:ned not less than one Penalties. 
 thousand dollars nor more than five thousand dollars, and 
 imprisoned not less than six months nor more than two 
 years. 
 
 Indictment under section 3317. (Rosenfeld v. United 
 
 '^Reetile? deflaer*^K^tt)'^'^^°^°'^® 
 
272 DISTILLED SPIRITS. 
 
 As to employee swearing to returns. (32 Int. Eev. Rec, 
 16.5; T. D. 1046; modified by T. D. 1646.) 
 
 Carrying on business as rectifiers, with intent to defraud. 
 ( Sprinkle- «. United States, 141 Fed., 811; Angle v. United 
 States, 162 Fed., 264 ; United States v. Byrne, 7 Fed., 963.) 
 
 Rectifiers- no- [Act of July 16, 1892 {27 Stat., 200).] When any 
 to"rectify'!""'*'°" rectifier intends to rectify or compound any distilled 
 spirits he shall, before emptying any package of distilled 
 spirits for that purpose, give notice in duplicate to the 
 Gauging. collcctor of internal revenue for the district of his in- 
 tention so to rectify, and submit such package for the 
 inspection of a United States gauger, who shall duly 
 weight or gauge such package and its contents and make 
 due return thereof, and such spirits shall not be emptied 
 for rectification, nor rectified or compounded in the pack- 
 age, until gauged or weighed as herein above provided. 
 And such notice and return shall be made in such form 
 and contain such particulars as the Commissioner of In- 
 ternal Eevenue, with the approval of the Secretary of the 
 Treasury, may from time to time prescribe. 
 
 Penalty. (See sec. 3323, R. S., amended.) 
 Regulations concerning marking, reporting, and account- 
 ing for sweetened spirits at rectifying houses. (Regulations 
 No. 7, pp. 99, 104, 108, 110.) 
 
 Addition of caramel or burnt sugar. (T. D. 1306.) 
 Extracting spirits (soakage) from wood of empty pack- 
 ages. (T. D. 1823.) 
 
 See Act of March 4, 1915, p. 275, authorizing gauge for 
 dumping to be done by rectifier under regulations to be 
 made by the Commissioner and approved by the Secretary. 
 (T. Ds. 2176, 2207, 2219, and 2240.) 
 
 Instructions as to use of 27 B packages and original 
 packages on premises of rectifiers. (T. D. 1801.) 
 
 ^^ Books to^^be Seg. 3318. [ATueiid^d hy act of February 27, 1877 (19 
 fiera and whoi^ Stat., 2^8) and hy sec. 6, act of March 1, 1879 {20 Stat., 
 ^le dealers. g^g~^ -^ j,^^^^.^ ^^^^^^^^ ^^^^1 wholesale Uquor-dealcr shall 
 
 provide a book, to be prepared and kept in such form as 
 may be prescribed by the Commissioner of Internal Eev- 
 enue, and shall, on the same day on which he receives any 
 foreign or domestic spirits, and before he draws off any 
 part thereof, or adds water or anything thereto, or in any 
 respect alters the same, enter in such book, and in the 
 proper columns respectively prepared for the purpose, 
 the date when, the name of the person or firm from whom, 
 and the place whence the spirits were received, by whom 
 distilled, rectified, or compounded, and when and by whom 
 inspected, and, if in the original package, the serial num- 
 ber of each package, the number of wine-gallons and 
 proof-gallons, the kind of spirit, and the number and 
 kind of adhesive stamps thereon. And every such rectifier 
 and wholesale dealer shall, at the time of sending out of 
 his stock or possession any spirits, and before the same 
 are removed from his premises, enter in like manner in 
 said book the day when and the name and place of busi- 
 ness of the person or firm to whom such spirits are to be 
 sent, the qffiJoAStjicii&jil Ma<i«Of/i!^ality of such spirits, the 
 number of gallons and fractions of a gallon at proof, and, 
 
DISTILLED SPIRITS. 
 
 273 
 
 if in the original packages in which they were received, 
 the name of the distiller and the serial number of the 
 package. Every such book shall be at all times kept in 
 some public or open place on the premises of such rectifier 
 or wholesale dealer for inspection, and any revenue officer 
 may examine it and take an abstract therefrom ; and when 
 it has been filled up as aforesaid, it shall be preserved by 
 such rectifier or wholesale liquor-dealer for a period not 
 less than two years ; and during such time it shall be pro- 
 duced by him to every revenue officer demanding it. 
 
 And whenever any rectifier or wholesale liquor-dealer 
 refuses or neglects to provide such book, or to make en- 
 tries therein as aforesaid, or cancels, alters, obliterates, or 
 destroys any part of such book, or any entry therein, or 
 makes any false entry therein, or hinders or obstructs any 
 revenue officer from examining such book, or making any 
 entry therein, or taking any abstract therefrom ; or when- 
 ever such book is not preserved or is not produced by any 
 rectifier or wholesale liquor-dealer as hereinbefore 
 directed, he shall pay a penalty of one hundred dollars, 
 and shall on conviction be fined not less than one hundred 
 dollars nor more than five thousand dollars, and im- 
 prisoned not less than three months nor more than three 
 years.' 
 
 That every person required to keep the books prescribed 
 by this section shall, on or before the tenth day of each 
 month, make a full and complete transcript of all entries 
 made in such book during the month preceding, and, after 
 verifying the same bj^ oath, shall forward the same to the 
 collector of the district in which he resides. Any failure 
 by reason of refusal or neglect to make said transcripts 
 shall subject the person so offending to a fine of one hun- 
 dred dollars for each neglect or refusal. . \ 
 
 Law construed and applied. Wliere parties are both 
 wluolesale and retail dealers In the same place. (United 
 States V. Malone, 8 Ben., 574 ; 22 Int. Rev. Rec., 403 ; Fed. 
 Cas. No. 15713.) 
 
 Importers must keep the wholesale liquor dealers' book. 
 (United States v. McCullough, 22 Int. Rev. Rec, 202 ; Fed. 
 Cas. No. 15665.) 
 
 Recovery of penalty of $100 in a civil action no bar to 
 criminal proceedings. (Case of Leszynsky, 25 Int. Rev. 
 Kec, 71; 16 Blatch., 9 ; Fed. Cas. No. 8279.) 
 
 The duty of making entries in the book may be delegated 
 to a clerk, but the dealers and rectifiers are responsible if 
 the proper entries are not made. (United States v. 50 Bar- 
 rels Whisky, 11 Int. Rev. Rec, 94; Fed. Cas. No. 1.5091; 
 United States v. Amann, Fed. Cas. No. 14438.) 
 
 Oath should be made by the principal instead of em- 
 ployee. (32 Int. Rev. Rec, 165.) 
 
 Verification of returns. (T. Ds. 1039, 1046, 1212, 1646.) 
 
 Forms 52 A and 122. (T. D. 1626.) 
 
 Revision of Form 45. (T. D. 353. ) 
 
 Rectifiers' returns. (T. D. 1714.) 
 
 A wholesale liquor dealer who deals exclusively in wmes 
 or malt liquors not required to keep the book. (13 Int. Rev. 
 Rec, 161.) 
 
 Transcripts. 
 
 Penalty. 
 
 140184°— 20- 
 
 -18 
 
 Digitized by Microsoft® 
 
274 DISTILLED SPIRITS- 
 
 In an indictment under this section it is not necessary 
 to specify tbe name of the person to whom, or the place 
 where, the casks were sent. That is a matter of evidence. 
 (WilUams v. United States, 158 Fed., 30:) 
 
 Indictment under section 3318. (United States v. Miller, 
 
 14 Blatch., 93, Fed. Cas. No. 1.5771.) 
 
 The statute refers only to wholesale dealers in spirits. A 
 wholesale dealer in malt liquors is not required to lieep 
 the book. (United States v. Reagan, Fed. Cas. No. 16128; 
 
 15 Int. Rev. Rec, 8.) 
 
 Transcripts must be filed. (Brown v. Harkins, 131 Fed., 
 • C3.) . 
 
 Cases of whisky bottled in bond sliould be entered on 
 book Form 52. (T. D. 808 ; Regs. No. 23, revised, p. 23.) 
 
 It is not necessary for a person qualifying as rectifier, for 
 the sole purpose of rectifying for other persons, to qualify 
 as wholesale liquor dealer. How book Form 52 should be 
 kept. (T. D. 640.) 
 
 Separate record to be kept covering all distilled spirits 
 received and disposed of by wholesale liquor dealers. 
 (T. Ds. 2571, 2655.) 
 
 Sec, 62. [Aci of August 27,1894. (£8 Stat., SOS).] That 
 no distiller who has given the required bond anii who 
 sells only distilled spirits of his own production at the 
 place of manufacture, or at the place of storage in bond,, 
 in the original packages to which the tax-paid stamps are 
 DistiUer re- affixed, shall be required to pay the special tax of a whole- 
 book. Sec. ssis! sale liquor dealer on account of such sales : Provided, 
 ^- ^' That he shall be required to keep the book prescribed by 
 
 section thirty-three hundred and eighteen of the EeTised 
 Statutes of the United States, or so much as shall show 
 the date when he sent out any spirits, the serial numbers 
 of the packages containing same, the kind and quality of 
 the spirits in wine gallons and taxable gallons, the serial 
 numbers of the stamps on the packages, and the name 
 and residence of the person to whom sent; and the pro- 
 visions of section five of an Act entitled "An Act to 
 amend ihfe laws relating to internal revenue " approved 
 March fifth, eighteen hundred and seventy-nine, as to 
 transcripts, shall apply to such books. Any failure, by 
 reason of refusal or willful neglect, to furnish the trans- 
 cript by him shall subject the spirits owned or distilled 
 by him to forfeiture. 
 uMutiS^" rcat' ®^^- ^^19- •'-t shall not be lawful for any rectifier of 
 or than 20 gal- distiUcd Spirits, or wholesale or retail liquor-dealer, to 
 perlon,''^™. °™ pufchase Or receive any distilled spirits in quantities 
 greater than twenty gallons from any person other than 
 an authorized rectifier of distilled spirits, distiller, or 
 wholesale liquor-dealer. Every person Avho ^dolates this 
 Penalty. scctiou shall forfeit and. pay one thousand dollars: Pro- 
 vided, That this provision shall not be held to apply to 
 judicial sales, or to sales at public auction made by an 
 auctioneer. 
 
 The exception made in this proviso is exten<ied to certain 
 other sales by section. 4, a<;t of March 1, 1879, amending 
 section 3244, paragraph 5, page 170. 
 
 If a rectilier purchases from an anthoi-ized distiller, who 
 is ^£JfjcMzSd^lb^'IWird^^l^ °^ ^^ authorized wliolesale 
 
DISTILLED SPIRITS. 275 
 
 liquor dealer, distilled spirits, in quantities greater tlian 
 20 Kalloiis, which were iiot produced by such authorized 
 distiller, such purchaser is liable to the penalty imposed by 
 section 3319. <The New York Rectifying Co. v. United 
 States, 14 Blatch., 549; Fed. Cas. No. 10214.) 
 
 The word " receive " as used in this section means re- 
 ceive for sale, and that where a retail dealer receives more 
 than 20 gallons of spirits from any person other than one 
 authorized by the act to sell such spirits, for storage only, 
 and not for sale, he does not incur the penalty. (United 
 States' V. Fridenberg, 11 Int. Eev. Eec, 5 ; Fed. Cas. No. 
 15168.) 
 
 Sec. 3320. [Amended ly act of July 16, 1892 {27- Stat., stamp'iS"^of^■e=-' 
 183) and ly sec. 66, act of August 27, 1894 {28 Stat., ^'^"'^ ^p'"'=' 
 609).'] Whenever any cask or package, containing five 
 ■wine gallons or more, is filled for shipment, sale, or de- 
 livery on the premises of any rectifier who has paid the 
 special tax required by law, it shall be inspected and 
 gauged by a United States gauger whose duty it shall be 
 to mark and brand the same and place thereon an en- 
 graved stamp, which shall state the date when afiixed and 
 the number of proof gallons, and shall be in such form 
 as shall be prescribed by the Commissioner of Internal 
 Eevenue with the approval of the Secretary of the Treas- 
 ury : Provided, That when such cask or package is filled 
 on the premises of a rectifier rectifying less than five hun- 
 dred barrels a year, counting forty gallons of proof 
 spirits to the barrel, it may be gauged, marked, branded, 
 and stamped by a United States gauger, or it may be 
 gauged, marked, branded, and stamped by the rectifier, as 
 the Commissioner M Internal Eevenue, with the approval 
 of the Secretary of the Treasury, may by regulations 
 prescribe. 
 
 The act of July 20, 1868, imposed a tax of 25 cents each on 
 stamps for rectified spirits and wholesale liquor dealers' 
 packages. 
 
 This rate was in force until August 1, 1872. (Act of June 
 6, 1872.) 
 
 The act of June 6, 1872, reduced the price of these stamps 
 to 10 cents, which continued until the taking eifect of the 
 act of May 28, 1880, since which time no charge has been 
 made for rectifiers' or wholesale liquor dealers' stamps. 
 (Commissioner's reports, 1905, p. 5; 1910, p. 18.) 
 
 Rectified spirits stamps must be signed by gaugers on the 
 date they alBsed them. (40 Int. Rev. Bee, 413.) 
 
 Spirits reduced in proof by addition of water only not to 
 be stamped as rectified spirits. (T. D. 1749.) 
 
 Sec. 1. {Act of March i, 1915 {38 Stat., 1017).— Ex- ^^^^^^^^^-^'_ 
 tract.'] Whenever any cask or package of distilled ij*rnents^byrec- 
 spirits containing five wine gallons or more is dumped by 217TJ 
 a rectifier for rectification or filled and received from rec- 
 tification for sale, shipment, or delivery the same shall be 
 gauged, marked, branded, and stamped by a United 
 States gauger ; but the Commissioner of Internal Eevenue 
 may by regulations, approved by the Secretary of the 
 Treasury, provide that the gauging, marking, stamping, 
 and branding of such packages so dumped for rectifica- 
 Digitizea by Microsoft® 
 
276 DISTILLED SPIBITS. 
 
 tion, or received therefrom, be ^one by the rectifier 
 instead of by a United States gauger. 
 
 This provision amends act of July 16, 1892 (see p. 272), 
 and also section 3320, as amended. 
 
 Regulations concerning the gauging, marking, branding, 
 and stamping of distilled spirits by rectifiers, under act of 
 March 4, 1915, No. 7, revised — Supplement No. 1. (T. D. 
 2207.) 
 
 Additional instructions in connection with the gauging of 
 distilled spirits at rectifying houses after July 1, 1915. 
 (T. D. 2219.) 
 
 Regulations concerning the gauging and marking of dis- 
 tilled spirits at rectifying houses. (Regulations, No. 7, 
 pp. 178-182; Circs. 737, 738, 740; T. D. 2207; T. D. 2240.) 
 
 Violations of law and regulations by wholesale liquor 
 dealers and rectifiers. (Cir. No. 616; T. D. 455.) 
 
 Marks on packages put up by wholesale liquor dealers. 
 (Cir. No. 652; T. D. 734.) 
 
 Brands in spiral form are no longer to be used on recti- 
 fiers' packages of spirits. (T. D. 721.) 
 
 Obscure marking and branding. (T. D. 566.) 
 
 Sec. 3321. [Repealed ly act of August 15, 1876 {19 
 Stat., 152).] 
 AitafT!g"l„"^™r: Sec. 3322. All blanks in any of the forms prescribed in 
 Bishing stamps, the preceding sections shall be duly filled in accordance 
 ■with the . facts in each case. And the stamps therein 
 designated shall in every case be affixed to a smooth sur- 
 face of the cask or other package, which surface shall 
 not have been previously painted or covered with any 
 substance, and so as to fasten the same securely to the 
 cask or package, and shall be duly canceled, and shall 
 then be immediately covered with a coating of trans- 
 parent varnish, or other substance, so as to protect them 
 from removal or damage by exposure ; and such affixing, 
 cancellation, and covering shall be done in such manner 
 as the Commissioner of Internal Eevenue may by regula- 
 tion prescribe. 
 Wholesale Sec. 3323. [ATTiended ly the act of July 16, 1892 {27 
 mTrk' bl-lnrand ^t^^*"! ^00).] Evcry package of distilled spirits contain- 
 Btamp packages, ing five winc gallons or more, filled on the premises of 
 a wholesale liquor dealer, who has paid the special tax 
 required by law, shall be marked, branded, and stamped 
 by such wholesale liquor dealer in such manner and 
 under such rules and regulations as the Commissioner 
 of Internal Eevenue, with the approval of the Secretary 
 of the Treasury, may prescribe; and on or before the 
 tenth day of each month every wholesale liquor dealer 
 Returns. shall make return, under oath, to the collector of internal 
 revenue for the district of the various kinds and quanti- 
 ties of each kind and of the total quantities of distilled 
 spirits received on his premises and of the various kinds 
 and quantities of each kind and of the total quantity of 
 distilled spirits sent out from his stock or possession dur- 
 ing the preceding month, and of the quantity of each 
 kind and the total quantity remaining on hand at the end 
 Form. of ^he monthj and such return shall be made in such 
 
 Digitized by Microsoft® 
 
DISTILLED SPIKITS. 277 
 
 form and contain such other particulars as the Commis- 
 sioner of Internal Eevenue, with the approval of the Sec- 
 retary of the Treasury, may prescribe. And every recti- P«"a"y- 
 fier or wholesale liquor dealer who refuses or willfully 
 neglects to comply with the requirements of this act as 
 to giving the said notice or the said return, and as to 
 marking, branding, and stamping, in accordance with 
 the law and the regulations made in pursuance thereof, 
 the packages of spirits filled on his premises as afore- 
 said, shall, for each such offense, be fined not less than 
 two hundred dollars nor more than one thousand dollars. 
 
 Spurious labels. (T. D. 286.) 
 
 Reduction in proof of distilled spirits in distillers' original 
 packages. (Regs. No. 7, revised, p. 189.) 
 
 Section 3289, Revised Statutes, provides forfeiture if 
 spirits are not marljed and branded as required. (United 
 States V. 7 Bbls. of Whislsey, 131 Fed., 806.) 
 
 Sec. 3324. Every person who empties or draws off, or bra^nds* "'"be""* 
 causes to be emptied or drawn off, any distilled spirits faced from empty 
 from a cask or package bearing any mark, brand, or '^^*^' 
 stamp, required by law, shall, at the time of emptying 
 such cask or package, efface and obliterate said mark, 
 stamp, or brand. Every such cask or package from omftting"'^to * ef- 
 which said mark, brand, or stamp is not effaced and *ace and for 
 obliterated as herein required, shall be forfeited to the violation *of°iaw! 
 United States, and may be seized by any officer of in- 
 ternal revenue, wherever found. And every railroad 
 ■ company or other transportation company, or person 
 who receives or- transports, or has in possession with in- 
 tent to transport, or with intent to cause or procure to 
 be transported, any such empty cask or package, or any 
 part thereof, having thereon any brand, mark, or stamp, 
 required by law to be placed on any cask or package con- 
 taining distilled spirits, shall forfeit three hundred dol- 
 lars for each such cask or package, or any part thereof, 
 so received or transported, or had in possession with the 
 intent aforesaid ; and every boat, railroad-car, cart, dray, 
 wagon, or other vehicle, and all horses and other animals 
 used in carrying or transporting the same shall be for- 
 feited to the United States. Every person who fails to 
 efface and obliterate said mark, stamp, or brand, at the 
 time of emptying such cask or package, or who receives 
 any such cask or package, or any part thereof, with the 
 intent aforesaid, or who transports the same, or know- 
 ingly aids or assists therein, or who removes any stamp 
 provided by law from any cask or package containmg, or 
 which had contained, distilled spirits, without defacing 
 and destroying the same at the time of such removal, or 
 who aids or assists therein, or who has in his possession 
 any such stamp so removed as aforesaid, or has in his 
 possession any canceled stamp, or any stamp which has 
 been used, or which purports to have been used, upon 
 any cask or package of distilled spirits, shall "be deemed 
 Digitized by Microsoft® 
 
278 DISTILLED SPIRITS. 
 
 guilty of a felony, and shall be fined not less than five 
 hundred dollars nor more than ten thousand dollars, and 
 imprisoned not less than one year nor more than five 
 years. 
 
 As to empty imported spirit packages, see act of March 1, 
 1879, as amended, page 290. 
 
 It is of no consequence under tliis section wliat ttie intent 
 of the person failing to obliterate stamp is. There is no 
 discretion given to the court whether to fine or imprison 
 for the offense. The offender must be fined and also im- 
 prisoned. (United States v. Quantity of Distilled Spirits, 
 3 Ben., 552 ; 11 Int. Rev. Rec, 3.) 
 
 Principal liable for failure of employee to obliterate 
 stamps. (United States i: Adler & Fnrst, 21 Int. Rev. Rec, 
 316.) 
 
 The emptying of a cask without destroying stamp by the 
 •wife of a retail liquor dealer, who acts for her husband, 
 renders the latter liable to the penalty. 
 
 It is well settled that where a master, owing a certain 
 duty to the public, intrusts its performance to a servant, he 
 is responsible criminally for failure of servant to discharge 
 the duty, if nonperformance of the duty is a crime. (United 
 'States V. Buchanan (1881), 4 Hughes, 487; 9 Fed., 689; 28 
 Int. Rev. Rec, 21.) 
 
 Indictment for removing stamps from casks containing 
 distilled spirits. (United States v. Bayaud, 16 Fed., 376; 21 
 Blatch., 287.) 
 
 Verdict set aside. (United States r. Rogers, western dis- 
 trict of Kentucky, 164 Fed., 520.) 
 
 An indictment for falling to efface and cancel marks and 
 brands at the time of emptying the package, need not aver 
 a criminal intent. (United States ■;;. Ulrici, 3 Dill., 533; 
 Fed. Cas. No. 16594 ; United States v. GaUant, 177 Fed., 281.) 
 
 The carrier is bound to know whether or not there were 
 Stamps upon the barrels not effaced or obligated. (United 
 States V. Goodrich Transp. Co., Fed. Cas. 15228 ; 8 Biss., 224. ) 
 
 Section 3324 does not apply to stamps on cases which had 
 contained spirits bottled-in-bond. (T. D. 1252.) 
 
 Circular letter to revenue officers relative to the require- 
 ments of this section. (T. D. 1648.) 
 
 Definition of felony. (Sec. 335, Criminal Code, act of 
 March 4, 1909, p. 642.) 
 
 The provisions of section 3324, relative to the obliteration 
 of stamps on empty distilled spirits casks and packages, in- 
 cluding those imposing penalties, have been held to apply to 
 empty wine packages. Therefore, unless stamps on empty 
 wine packages are effaced and obliterated, the penalties pro- 
 vided by this section will be asserted. (T. D. 2765.) 
 
 in'-''"pbft°'casks ^^^- 3325. Whenfever any person Imowingly purchases 
 baving iiispec- or sclls, wlth liispection-marks thereon, any cask or pack- 
 '■'"peiSuy.'' age, after the same has been used for distilled spirits, he 
 
 shall forfeit and pay the sum of two hundred dollars for 
 
 every such cask so purchased or sold. 
 Changing o r gEC. 3326. Whenever any person changes or alters anv 
 
 altering marks . iiii ^ ..*' 
 
 tr brands. Shift- stamp, mark, or brand on any cask or package contammg 
 ins spirits, etc. (jigjii^gj spirits, Or puts iuto any cask or package spirits 
 of greater strength than is indicated by the inspection- 
 mark thereon, or fraudulently uses any cask or package 
 having any inspection-mark or stamp thereon, for the 
 purpose of selling other spirits^ or spirits of quantity or 
 Penalty. quality different from the spirits previously inspected 
 
 therein, h.Q^i^i<^^^(§t%^clff^ the sum of two hundred 
 
DISTILLED SPIRITS. 279 
 
 dollars for every cask or package on which the stamp or 
 mark is so changed oi-' altered, or which is so fraudulently 
 used, and shall be fined for each such offense not less than 
 one hundred dollars nor more than one thousand dollars, 
 and imprisoned. not less than one month nor more than 
 one year. 
 
 United States v. Bardenheier, 49 Fed., 846. 
 
 Sec. 3327. No person shall remove any distilled spirits ...R™"^^! ?' 
 at any other time than after sun-rising and before sun- tfitay o°™ectl' , 
 setting in any cask or package containing more than ten before "sumise 
 gallons from any premises or building in which the same =""' »""■ =""=<:*■ 
 may have been distilled, redistilled, rectified, compounded, 
 manufactured, or stored; and every person who violates j,^^^^ 
 this provision shall be liable to a penalty of one hundred 
 dollars for each cask, barrel, or package of spirits so re- 
 moved; and said spirits, together with any vessel con- Forfeiture. 
 taining the same, and any horse, cart, boat, or other con- 
 i^eyance used in the removal thereof, shall be forfeited to 
 the United States. 
 
 Sec. 3328. (Obsolete.) 
 
 Sec. 3329. [Amended by sec. 10, act of May 28, 1880 {21 
 Stat., US).'] Distilled spirits upon which all taxes have Drawback on 
 been paid may be exported, Avith the privilege of draw- distiued spirits. 
 back, * * * and in distillers' original casks or pack- 
 ages, containing not less than twenty wine-gallons each, 
 on application of the owner thereof to the collector of 
 customs at any port of entry, and under such rules and 
 regulations, and after making such entry as may be pre- 
 scribed by law and by the Secretary of the Treasury. The 
 entry for such exportation shall be in triplicate, and shall Exportation of 
 contain the name of the person applying to export, the f/'^on" whicif'tax 
 name of the distiller, the name of the district in which has been paid. 
 the spirits were distilled, the name of the vessel by which, 
 and the name of the port to which, they are to be exported ; 
 and the form of the entiy shall be as follows : 
 
 EXPOBT- ENTKY OIT DISTILLED SEDJITS ENTITLED TO DBAWBACK. 
 
 Entry of spirits distilled by ,. in district, 
 
 State of , to be exported by . In the , 
 
 whereof is master, bound to . 
 
 And the entry shall specify the whole number of casks 
 or packages, the marks and serial numbers thereon, the 
 quality or kind of spirits as known in commerce, the 
 number of gauge or wine gallons and of proof -gallons ; 
 and the amount of the tax on such spirits shall be verified 
 by the oath of the owner of the spirits, and that the tax 
 has been paid thereon, and that they are truly intended 
 
 to be exported to the port of , and not to be 
 
 relanded within the limits of the United States. One 
 bill of lading, duly signed by the master of the vessel, 
 shall be deposited with said collector, to be filed at his 
 office with the entry retained by him. One of said 
 
 Digitized by Microsoft® 
 
280 DISTILLED SPIRITS. 
 
 entries shall be, when the shipment is completed, trans- 
 mitted to the Secretary of the Treasury, to "be recorded 
 and filed in his office. The lading on board said vessel 
 shall be only after the receipt of an order or permit 
 signed by the collector of customs and directed to a 
 customs ganger, and after each cask or package shall 
 have been distinctly marked or branded by said ganger 
 as follows : " For export from U. S. A.," and the tax-paid 
 stamps thereon obliterated. The casks or packages 
 shall be inspected and gauged alongside of or on the 
 vessel by the ganger designated by said collector, under 
 such rules and regulations as the Secretary of the Treas- 
 ury may prescribe; ^nd on application of the said col- 
 lector it shall be the duty of the surveyor of the port to 
 designate and direct one of the custom-house inspectors 
 to superintend such shipment. And the gauger aforesaid 
 shall make a full return of such inspection and gauging 
 in such form as may be prescribed by the Secretary of 
 the Treasury, showing by whom each cask of such spirits 
 was distilled, the serial number of the cask, and of the 
 tax-paid stamp attached thereto, the proof and quantity 
 of such spirits as per the original gauge-mark on each 
 cask, and the quantity in proof and wine gallons as per 
 the gauge then made by him. And said gauger shall 
 certify on such return that the shipment has been made, 
 in his presence, on board the vessel named in the entry 
 for export, which return shall be indorsed by said custom- 
 house inspector certifying that the casks or packages 
 have been shipped under his supervision on board said 
 vessel, and the tax-paid stamps obliterated ; and the said 
 inspector shall make a similar certificate to the surveyor 
 of the port, indorsed on or to be attached to the entry in 
 possession of the custom-house. 
 Drawback ^ drawback shall be allowed upon distilled spirits on 
 
 which the tax has been paid and exported to foreign coun- 
 tries, under the provisions of this act,' when exported as 
 herein provided for. The drawback allowed shall include 
 the taxes levied and paid upon the distilled spirits ex- 
 ported, at the rate of ninety cents per proof-gallon, as per 
 last gauge of said spirits prior to exportation, and shall be 
 due and payable only after the proper entries have been 
 made and filed, and all other conditions complied with as 
 hereinbefore required, and on filing with the Secretary of 
 the Treasury the proper claim, accompanied by the certifi- 
 cate of the collector of customs at the port of entry where 
 the spirits are entered for export, that such spirits have 
 been received into his custody and the tax-paid stamps 
 thereon obliterated; and the Secretary of the Treasury 
 shall prescribe such rules and regulations in relation 
 thereto as may be necessary to secure the Treasury of 
 the United States against frauds: Provided, That the 
 drawback on spirits distilled prior to August one, eighteen 
 
 Digitized by Microsoft® 
 
DISTILLED SPIRITS. 281 
 
 hundred and seventy-two, shall not exceed sixty cents' 
 per proof-gallon. 
 
 For penalty imposed for fraudulently claiming drawback 
 see section 3330, Revised Statutes. 
 
 One of tlie changes In section 3329 made by section 10, 
 act of May 28, 1880, was in these words: "That section 
 thirty-three hundred and twenty-nine of the Revised Stat- 
 utes of the United States be amended by striking out after 
 the word ' exported,' in the flfty-sixth line, the words ' at 
 the rate of seventy cents per proof-gallon,' and inserting in 
 lieu thereof the word ' ninety.' " It was intended by this 
 amendment, as construed by this office, simply to strike out 
 " seventy " and insert " ninety," and is printed as intended. 
 
 In the absence of any provision of law for the allowance 
 of drawback of tax at the rate imposed by section 48, act of 
 August 28, 1894, no greater allowance than here authorized 
 can be made. The allowance of drawback is limited to 90 
 cents per gallon, owing to the failure of Congress to amend 
 this section when the rate of tax was increased to $1.10 
 per gallon. (See T. D. 2572.) 
 
 Drawback to be compvited on proof-gallons in all cases, 
 
 notwithstanding the fact that tax is levied and paid on the 
 
 wine-gallon when below proof. (Decision of Secretary of 
 
 , the Treasury May 19, 1884, case of Lilienthal & Co., 30 
 
 Int Rev. Rec, 157.) 
 
 Removal of spirits from distiller's original casks or pack- 
 ages to other packages prior to exportation, even if under 
 supervision of customs officers, vitiates claim for drawback.^ 
 (Decision of Secretary of the Treasury June 14, 1883, 
 case of Hayes & Poppele. See also like decision (T. D. 
 5859) as to export spirits returned to United States to be 
 recasked for reexportation ; 29 Int. Rev. Rec, 308. ) 
 
 As the statute provides only for the exportation of spirits 
 by vessel (see sec. 3, R. S.) no allowance of drawback can 
 be made on spirits exported by cars or other vehicles used 
 as a means of transportation on land. (Decisioh of Secre- 
 tary of the Treasury Apr. 18, 1885, case of Lilienthal & Co.) 
 
 Date of exportation to be determined by date of sailing 
 of exporting vessel. (Thompson t\ Peaslee, 20 How., 57.) 
 
 Regulation in regard to drawback of tax on distilled 
 spirits. (Regulations, No. 29, revised.) 
 
 Drawback. (Thompson v. United States, 142 -U. S., 471.) 
 
 Filing of collateral evidence of exportation of articles. 
 (T. Ds. 1747, 1880.) 
 
 Sec. 3330. [Amended by sec. 2, act of June 9, 1€7^ {18 ,„,fi^fe°d'""sp?rita 
 Stat, 64), and sec. 11, act of May 28, 1880 {21 Stat^'-^^^ij^-^^ii^om 
 Ho).'] Distilled spirits may be withdrawn from distill- houses, 
 ery bonded warehouses, at the instance of the owner of 
 the spirits for. exportation in the original casks, or pack- 
 ages, without the payment of tax, under such regulations, 
 and after making such entries and executing and filing 
 with the collector of the district from which the removal 
 is to be made such bonds and bills of lading, and giving 
 such other additional security as may be prescribed by 
 the Commissioner of Internal Revenue, with the ap- 
 proval of the Secretary of the Treasury : Provided, That 
 bonds given under this section shall be canceled under 
 such regulations as the Secretary of the Treasury shall 
 prescribe: And provided further, That the bonds re- 
 quired to be given for the exportation of distilled spirits 
 shall be canceled upcfif'SlfelO^i^^MtertaeQ/?® satisfactory 
 
282 
 
 DISTILLED SPIKITS. 
 
 ■proof and certificates that said distilled spirits have 
 been landed at the port of destination named in the bill 
 of lading, or upon satisfactory proof that after shipment 
 the same -were lost at sea without fault or neglect of the 
 owner or shipper thereof. 
 
 All distilled spirits intended for export, as aforesaid, 
 before being removed from the distillerj' Avarehouse, shall 
 be marked as the Commissioner of Internal Revenue may 
 prescribe, and shall have affixed to each cask an engraved 
 stamp indicative of such intention, to be provided and 
 furnished by the several collectors as in the case of other 
 stamps, and to be charged to them and accounted for in 
 Export stamp, the Same manner, and for the expense attending the pro- 
 of" 25?*^(sec. \ viding and afftxing such stamps ten cents for each pack- 
 1874 / " " ^ ^' age so stamped shall be paid to the collector on making 
 the entry for such transportation. Allien the owner of 
 the spirits shall have made the proper entries, filed the 
 bonds, and otherwise complied with all the requirements 
 of the law and regulations as herein provided, the col- 
 lector shall issue to him a permit for the removal and 
 transportation of said spirits to the collector of the' port 
 from which the same are to be exported, accurately de- 
 scribing the spirits to be shipped, the amount of tax 
 thereon, the State and district from which the same is 
 to be shipped, the name of the distiller by whom distilled, 
 the port to which the same are to be transported, the 
 name of the collector of the port to whom the spirits are 
 to be consigned, and the routes over -^hich they are to 
 be sent to the port of shipment. Such shipment shall be 
 made over bonded routes whenever practicable. The col- 
 lector of the port shall receive such spirits, and permit 
 the exportation thereof, under the same rules and regu- 
 lations as are prescribed for the exportation of spirits 
 upon which the tax has been paid. 
 Fraudulent ^n(j evtrv person who fraudulently claims, or seeks, or 
 
 claims for draw- , . •'.'■ » . . , •' . '„ . '. 
 
 back. obtains an allowance or drawback on any distilled spirits, 
 
 of fraudulently claims any greater allowance or draw- 
 Penaity. back tlTau the tax actually paid thereon, shall forfeit and 
 pay to the Government of the United States triple the 
 amount wrongfully and fraudulently sought to be ob- 
 tained, and shall be imprisoned not more than ten years ; 
 and every owner, agent, or master of any vessel or other 
 person who knowingly aids or abets in the fraudulent 
 collection or fraudulent attempts to collect any draw- 
 back upon, or knowingly aids or permits any fraudulent 
 change in the spirits so shipped, shall be fined not ex- 
 ceeding five thousand dollars and imprisoned not more 
 than one year, and the ship or vessel on board of which 
 such shipment was made or pretended to be made shall 
 be forfeited to the United States, whether a conviction 
 of the master or owner be had or otherwise, and proceed- 
 ings may be had in admiralty by libel for such forfeiture. 
 Reiandiiig spir- Evcry pcrson who intentionally relands within the 
 
 "xportiS™^ '°'jurisdicti^'&?ett]feKWtfi«8ao)^tes any distilled spirits 
 
DISTILLED SPIKITS. 283 
 
 which have been shipped for exportation under the pro- 
 visions of this act, or who receives such relanded distilled 
 spirits, and every person who aids or abets in such re- 
 landing or receiving of such spirits, shall be fined not 
 exceeding five thousand dollars and imprisoned not more 
 than three years ; and all distilled spirits so relanded, to- ^™''"5'- 
 gether with the vessel from which the same were re- 
 landed within the jurisdiction of the United States, and 
 all boats, vehicles, horses, or other animals used in re- 
 landing and removing such distilled spirits, shall be 
 forfeited to the United States. 
 
 See notes under section 3329. 
 
 Fraudulent claims for drawback. (Sec. 344.3, p. 588.) 
 
 The amendment by the act of June 9, 1874, reduced the 
 expense of export stamp from 25 to 10 cents. 
 
 Blanket bond allowed. (T. D. ISIS.) 
 
 Bonds covering spirits withdrawn for exportation to be 
 in penal sum of not less than 125 per cent of tax on spirits 
 so withdrawn. (T. D. 23*5.) 
 
 Instructions relative to removal of spirits and giving 
 bonds within 30 days from date of regauge for exportation. 
 (T. D. 21472.) 
 
 Regulations No. 29. Concerning the transportation and 
 exportation of distilled spirits in bond without payment of 
 tax. 
 
 See on this section Clay v. Swope, 35 Int. Rev. Rec, 136. 
 
 As to wooden packages containing metallic cans, see 
 section 3287, as amended, p. 234. 
 
 Exportation and reimportation of distilled spirits. (T. 
 D. 1458 (incorporated in Regulations No. 29, revised), Cir. 
 No. 5, Int. Rev. No. 733.) 
 
 The execution of the export bond frees the spirits for the 
 time being from obligation to pay the tax, and from the 
 operation of the warehousing bond. (18 Op. Atty. Gen., 92.) 
 
 Shipment for export in sealed cars.' (T. D. 2473.) 
 
 Cancellation of export bonds for distilled spirits. (T. D. 
 1828.) 
 
 Alcohol exported with Intention to reimport. (21 Op. 
 Atty. Gen., 502.) 
 
 Metal packages for containing spirits for exjjort not re- 
 quired to have wooden surfaces for receiving marks, brands, 
 and stamps, where certain conditions are complied with. 
 (T. D. 2822.) 
 
 Sec. 1. [Act of June 9, 187 If. {18 Stat., 6^) , as arrheinded on withdrawal 
 ly sec. 10, act of Ma7>ch 1, 1879 {20 Stat., 327) .] That '^^^ Yran" 
 whenever the owner or owners of distilled spirits shall J^^ -''be'teke'i™'^ 
 desire to withdraw the same from any distillery bonded 
 warehouse for exportation under existing law, such owner 
 or owners may at their option, in lieu of executing an 
 export bond as now provided by law, give a transporta- 
 tion bond with sureties satisfactory to the collector of 
 internal revenue, and under such rules and regulations as 
 the Secretary of the Treasury may prescribe, conditioned 
 for the due delivery thereof on board ship at a port of 
 exportation to be named therein, and for the due per- 
 formance on the part of the exporter or owner at the port 
 of export of all the requirements in regard to notice of 
 export, entry, and the giving of bond hereinafter speci- 
 
 Digitized by Microsoft® 
 
284 DISTILLED SPIRITS. 
 
 fied ; and in such case, on arrival of the spirits at the port 
 
 of export, the exporter or owner at that port shall immedi- 
 
 Notice to col- atelj notify the collector of the port of the fact, setting 
 
 lector of port, forth liis intention to export the same, and the name of the 
 vessel upon vrhich the same are to be laden, and the port 
 to which they are intended to be exported. He shall, 
 after the quantity of spirits has been determined by the 
 gauger and inspector, file with the collector of the port an 
 Export entry, cxport-entry verified by his oath or affirmation. He shall 
 Export bond, also give bond to the United States, with at least two 
 sureties, satisfactory to the collector of customs, condi- 
 tioned that the principal named in said bond will export 
 the spirits as specified in said entry to the port designated 
 in said entry, or to some other port without the jurisdic- 
 tion of the United States. 
 
 And upon the lading of such spirits, the collector of the 
 port, after proper bonds for .the exportation of the same 
 have been completed by the exporter or owner at the port 
 of shipment thereof, shall transmit to the collector of in- 
 ternal revenue of the district from which the said spirits 
 Clearance cer- were withdrawn for exportation, a clearance certificate 
 
 CT^I^eponf ^^"^' and a detailed report of the gauger, which report shall 
 show the capacity of each cask in wine-gallons, and the 
 contents thereof in wine-gallons, proof -gallons, and tax- 
 able gallons. Upon receipt of the certificate and report, 
 and upon payment of tax on deficiency, if any, the col- 
 lector of internal revenue shall cancel the transportation 
 Cancellation of boud. The boud required to be given for the landing at 
 
 bOTd.° "^ P""^*^*'"" a foreign port of distilled spirits shall be canceled upon 
 
 the presentation of satisfactory proof and certificates 
 
 Cancellation of that Said distiUed spirits have been landed at the port of 
 
 export bond. destination named in the bill of lading or any other port 
 without the jurisdiction of the United States or upon 
 satisfactory proof that after shipment the same were lost 
 at sea without fault or neglect of the owner or shipper 
 thereof ; and whenever a distiller of spirits in bond shall 
 
 packagt"^^ ° desire to change the packages in which the same is con- 
 tained, in order to export them, the Commissioner of 
 Internal Revenue shall be authorized, under regulations 
 to be prescribed by him, and upon the execution of proper 
 bonds with sufficient sureties, to permit the withdrawal of 
 so much spirits from bond and in new packages as the- 
 distiller shall desire to export as aforesaid. 
 
 The withdrawal of spirits from a bonded warehouse for 
 con.sumption on a foreign war vessel is not an exportation. 
 (23 Op. Atty. Gen., 420.) 
 
 But see paragraph K of tariff act of October 3, 1913, pro- 
 viding for tax-free withdrawal of articles for foreign vessels 
 of war. 
 
 Tax on deficiency in transportation on the quantity of 
 spirits withdrawn from distillery warehouse for export 
 may be collected by distraint as well as by suit upon the 
 transportation bond. ' (16 Op. Atty. Gen., 634; 25 Int. Rev. 
 Rec, 342.) 
 
 Ther-shi-pmeatL^pf .domestio.^irits to a foreign country 
 and twS'^m)'3emem'(M§9ff% the United States do not 
 
DISTILLED SPIRITS. 285 
 
 , constitute an exportation and reimportation within the 
 contemplation of law, where tlie spirits were shipped 
 abroad with the intention of being returned to this coun- 
 try. (17 Op. Atty. Gen., 579; 29 Int. Rev. Rec, 225; 27 
 Op. Atty. Gen., 113.) 
 
 Spirits so sliipped are liable to forfeiture under the pro- 
 visions of section 3299, Revised Statutes, and every per- 
 . son making such shipment is also liable to the penalties 
 imposed by section 3296, Revised Statutes. (Cir. No. 733; 
 T. D. 1458.) 
 
 Extending bonding period in case of spirits to be ex- 
 ported. (18 Op. Atty. Gen., 92; 30 Int. Rev. Rec, 405.) 
 
 Condition of export bond being brolien through failure 
 to withdraw spirits from distillery warehouse, tax should 
 be assessed, bond may be sued, or tax may be collected by 
 distraint. (18 Op. Atty? Gen., 246 (Garland) ; 31 Int. Rev. 
 Rec, 246.) 
 
 Railroad companies and stockholders in incorporated 
 distilling companies, as sureties on transportation bonds. 
 (29 Int. Rev. Rec, 177, 185.) 
 
 Tax on loss In distillery warehouse after filing export 
 bond and before actual withdrawal. (United States v. 
 Thompson, 32 Int. Rev. Rec, 166; 142 U. S., 471.) 
 
 Suit to restrain the collector from refusing to accept ex- 
 port bonds. (Miles v. Johnson, 40 Int. Rev. Rec, 10.) 
 
 Distilled spirits withdrawn from bond can not be reim- 
 ported on payment of original tax. (Flagler v. Kidd, 78 
 Fed., 341, reversing 54 Fed., 367.) 
 
 Sec. 1. [Act of December 20, 1879 {21 Stat, 55).] ,eiag7T/ lo" 
 That where spirits are withdrawn from distillery ware- during transpor- 
 houses for exportation according to law, it shall be law- 
 ful, under such rules and regulations and limitations as 
 shall be prescribed by the Commissioner of Internal 
 Eevenue, with the approval of the Secretary of the 
 Treasury, for an allowance to be made for leakage or 
 loss by any unavoidable accident, and without any fraud 
 or negligence of the distiller, owner, exporter, carrier, 
 or their agents or employees, occurring during trans- 
 portation from a distillery warehouse to the port of 
 export ; nor shall any assessment be collected for such 
 loss or leakage where the same has not been paid on 
 distilled spirits exported since the first day of May, 
 eighteen hundred and seventy-eight. 
 
 Sec. 2. [Act of December W, 1879 {M Stat. 59).-] „,^-„r"'' 
 That where the spirits provided for in the precedmg 
 section are covered by a valid claim of insurance in ex- 
 cess of the market value thereof, exclusive of the tax, 
 the tax upon such spirits shall not be remitted to the 
 extent of such excessive insurance. 
 
 See sections 3221 and 3223, Revised statutes, as to 
 spirits accidentally destroyed in warehouse. 
 
 Section 15, act of May 28, 1880, page 336, as to losses 
 during transfers from distillery warehouses to manufac- 
 turing warehouses. ,. ^ ,, +t,„ 
 Where packages of distilled spirits are purchased by the 
 United States while in bonded warehouse and ordered 
 withdrawn " free of tax," the distiller can not be charged 
 with tax on alleged excess of shrinkage therein. (United 
 
 States V. Mulllns, U9 Fed., 334.) . 
 
 - ■ -i---a i>-- „.,„« Qj. claim 
 
 Internal 
 
 States V. Mulllns, 319 Fed., Sdi.) 
 
 In any assessme®Mfi^e^o^/^(Jg5/pauge 
 for loss an appeal Ires lo the Commis^ibner of 
 
286 DISTILLED SPIRITS. 
 
 Revenue, whose decisions are final. (Corning v. United 
 States,, 34 Ct. Cls., 272.) 
 
 Articles shipped to the Philippine Islands. \Sec 0, act 
 of March 8, 1902, p. 622.) 
 
 Articles shipped to the Canal Zone. (25 Op. Atty. Gen., 
 324.) 
 
 Eegulations relative to the esportati-on of distilled spirits 
 free of tax or with benefit of drawback. (No. 29, revised.) 
 
 Losses due to defective cooperage, improper storage, or 
 handling are not allowable. (T. D. 2335.) 
 
 Loss not exceeding one proof gallon from any one pack- 
 age in transit for export allowable without claim . being 
 filed. (T. Ds. 233-5, 2350.) 
 
 Where loss of distilled spirits shipped in sealed cars does 
 not exceed four wine gallons as to any one package and 
 average loss does not exceed'two wine gallons per package 
 as to all packages gauged, claims for remission not re- 
 quired. T. Ds. 2350, 246L) 
 
 oismft'spirU Sec. 624. [Act of Fehnia-n/ 2^, 1919. {40 Stat., 1057).] 
 expo??.'' '^'"'^ '°' That under such regulations as the Commissioner, with 
 the approval of the Secretary, may prescribe, alcohol or 
 other distilled spirits of a proof strength of not less than 
 one hundred and eighty degrees intended for export free 
 of tax may be drawn from receiving cisterns at any dis- 
 tillery, or from storage tanks in any distillery warehouse, 
 for transfer to tanks or tank cars for export from the 
 United States, and all provisions of existing law relat- 
 ing to the exportation of distilled spirits not inconsistent 
 herewith shall apply to spirits removed for export under 
 the provisions of this Act. 
 in told "for S Sec. 626. [Act of Febrwary 2If, 1919 _ {^0 Stat., 1057).] 
 P'"''- That distilled spirits known commercially as gin of not 
 
 less than 80 per centum proof may at any time within 
 eight years after entry in bond at any distillery be bot- 
 tled in bond at such distillery for export without the 
 payment of tax, under such rules and regulations as the 
 Commissioner, with the approval of the Secretary, may 
 prescribe. 
 tmmy''heiov% ^^'^^ ^^'^- N'o distiUcry nor distilling-apparatus seized 
 judgment, in for any violation of law shall be released: to the claimant 
 what cases. ^^ ^^ ^^.^ intervening party before judgment, except in 
 case of a distillery for which bond has been given and 
 which has a registered producing capacity of one hun- 
 dred and fifty proof gallons or more per day, on show- 
 ing, by suiEcient affidavits, that there are hogs or other 
 live stock, not less than 50 head in number, depending 
 for their feed on the products of said distillery, which 
 would suffer injury if the business of such distillery is 
 stopped. Such distillery, in that case, may be released 
 to the claimant, or to any other intervening party, at the 
 discretion of the court, on a bond to be given and ap- 
 proved in open court, with two or more sureties, for the 
 full appraised value of all the property seized, to be as- 
 certained by three competent appraisers designated and 
 appointed by the court. 
 
 lusky seized for forfeiture and released on bond. 
 
 tlS<mSyvlm!l]S^&m>nigb. wines, 25 Fed. Cas. (No, 
 15033), 985; 8 Blatch., 475.) 
 
DISTILLED SPIRITS. 287 
 
 Distilling apparatus seized for forfeiture, and applica- 
 tion made for its release on bond. (United States v. 2 
 Tons of Coal, 28 Fed. Cas., 320; 5 Blatcli., 386; United 
 States V. Distillery, etc., of J. C. McCoy, 25 Fed. Cas., 864 ; 
 21 Int. Rev. Rec, 165.) 
 
 Nature of bond. United States v. Bergentlial, 29 Fed., 
 444.) 
 
 , Sec. 3332. [Amended hy sec. 5, act of March 1, 1879- ^^.^'i^^.f^s: Tn 
 {20 Stat., 327). '[ When a judgment of forfeiture, in any certain cases. 
 case of seizure, is recovered against any distillery used or 
 fit for use in the production of distilled spirits, because 
 no bond has been given, or against any distillery used 
 or fit for use in the production of spirits, having a reg- 
 istered producing capacity of less than one liundred and 
 fifty gallons a day, for any violation of law, of whatever 
 nature, every still, doubler, worm, worm-tub, mash-tub, 
 and fermenting-tub therein shall be so destroyed as to 
 prevent the use of the same or of any part thereof for the 
 purpose of distilling.; and the materials shall be sold as in 
 case of other forfeited property. 
 
 And in case of seizure of a still, doubler, worm, worm- 
 tub, mash-tub, fermenting-tub, or other distilling- appara- 
 tus, having a less producing capacity than one hundred 
 and fifty ga,llons per day, for any offense involving for- 
 feiture of the same, where said apparatus shall be of less 
 than five hundred dollars' value, and where it shall be 
 impracticable to remove the same to a place of safe stor- 
 age from the place where seized, the seizing oificer is 
 authorized to destroy the same only so far as to prevent 
 the use thereof, or any part thereof, for the purpose of 
 distilling : Provided, That such destruction shall be in the 
 presence of at least one credible witness, and i that such 
 witness shall unite with the said officer in a duly sworn 
 report of said seizure and destruction, to be made to the 
 Commissioner of Internal Revenue, in which report they 
 shall set forth the grounds of the claim of forfeiture, the 
 reasons for such seizure and destruction, their estimate of 
 the fair cash value of the apparatus destroyed, and also 
 of the materials remaining after such destruction, and a 
 statement that, from facts within their own knowledge, 
 they have no doubt whatever that said distilling appara- 
 tus was set up for use and not registered, or had been 
 used in the unlawful distillation of spirits, and that it 
 was impracticable to remove the same to a place of safe 
 storage. 
 
 Within one year after such destruction the owner of the reimbSrse™^' fl 
 apparatus so destroyed may make application to the Sec- appucatiou with" 
 retary of the Treasury through the Commissioner of in one year. 
 Internal Revenue, for reimbursement of tlie value of the 
 same ; and unless it shall be made to appear to the satis- 
 faction of the Secretary and the Commissioner that said 
 apparatus had been used in the unlawful distillation of 
 spirits, the Secretary shall make an allowance to said 
 owner, not exceeding the value of said apparatus, less the 
 Digitized by Microsoft® 
 
288 DISTILLED SPIRITS. 
 
 value of said materials as estimated in said report; and 
 if the claimant shall thereupon Satisfy said Secretary 
 and Commissioner that said unlawful use of the appa- 
 ratus had been without his consent or knowledge, he 
 shall still be entitled to such compensation, but not other- 
 wrongiui seiz- wisc. And in case of a wrongful seizure and destruction 
 ures , cer ha- ^ j property undcr the foregoing provisions, the owner 
 thereof shall have right of action on the official bond of 
 / the officer who occasioned the destruction for all damages 
 caused thereby. 
 
 The words " judgment of forfeiture " include cases of for- 
 feiture under section 3460. (33 Int. Rev. Rec, 397.) 
 
 Indictment for wanton and willful injury to personal 
 property. ( State of North Carolina v. Thos. H. Vanderford, 
 84 Int Rec. Rec, 190.) 
 
 proof" Sn \iaim^ Sec. 3333. Whenever seizure is made of any distilled 
 »nt. spirits found elsewhere than in a distillery or distillery 
 
 warehouse, or other warehouse for distilled spirits author- 
 ized by law, or than in the store or place of business of a 
 rectifier, or of a wholesale liquor-dealer, or than in transit 
 from any one of said places; or of any distilled spirits 
 .found in any one of the places aforesaid, or in transit 
 therefrom, which have not been received into or sent out 
 therefrom in conformity to law, or in regard to which any 
 of the entries required by law to be made in the books of 
 the owner of such spirits, or of the store-keeper, wholesale 
 dealer, or rectifier, have not been made at the time or in 
 the manner required, or in respect to which the owner 
 or person having possession, control, or charge of said 
 spirits, has omitted to do any act required to be done, 
 or has done or committed any act prohibited in regard 
 to said spirits, the burden of proof shall be upon the 
 claimant of said spirits to show that no fraud has been 
 committed, and that all the requirements of the law in 
 relation to the payment of the tax have been complied 
 with- 
 
 Where evidence is introduced tending to show that true en- 
 tries and returns relative to the spirits have not been made, 
 the burden is thrown upon the claimant to prove regularity. 
 (United States v. 18 Bbls. of High Wines, 8 Blatch., 475; 
 Fed. Cas. No. 15033. 199 Bbls. of Whiskey v. United States, 
 94 U. S., 86. United States r. 8 Casks of Whisky, 7 Int. 
 Rev. Rec, 4; Fed. Cas. No. 1.5030. United States v. 508 
 Bbls. of Spirits, 5 Blatch., 407, Fed. Cas. No. 1.5113. United 
 States V. Six Barrels Distilled Spirits, 6 Int. Rev. Rec, 
 187 ; Fed. Cas. No. 15114. United States v. Sykes, 58 Fed., 
 1000. Twenty-Six Barrels and Seventeen Tierces of Dis- 
 tilled Spirits, Fed. Cas. No. 14283.) 
 
 This provision requiring affirmative proof by claimant is 
 not unconstitutional. (United States v. 78 Bbls., 7 Int. Rev. 
 Rec, 4; Fed. Cas. No. 16257.) 
 
 u /d e r' ■ud?cia'i ^^'^- ^^^*- [Amended Uj sec. 5, act March 1, 1879 {W 
 proees" rabj^ect Stat., 327).'] All distiUcd Spirits forfeited to the United 
 to tax. States, sold by order of court, or under process of dis- 
 
 traint, shall be sold subject to tax; and the purchaser 
 shall imm^f^^gj^cU^^^g/^ takes possession of said 
 spirits, pay the tax thereon. And any distuled spirits 
 
DISTILLED SPIRITS. 289 
 
 heretofore condemned, and now in the possession of the 
 United States, shall be sold as herein provided. If any 
 tax-paid stamps are affixed to any cask or package so 
 condemned, such stamps shall be obliterated and de- 
 stroyed by the collector or marshal after forfeiture, and 
 before such sale. 
 
 Provided : That in all cases wherein it shall appear Provision 
 that any distilled spirits offered for sale on distraint forwiu^'ot seu' ^ 
 taxes, where the taxes on such spirits have not been paid.i^™^ «""»' *» 
 or offered for sale for the benefit of the United States as 
 forfeited spirits under order of court or under proceed- 
 ing pursuant to section thirty-four hundred and sixty of 
 the Revised Statutes, will not, by reason of such spirits 
 being below proof, being [bring] a. price equal to the 
 taxes due and payable thereon, but will bring a price 
 equal to, or greater than, the tax on said spirits, computed 
 only upon the proof-gallons contained in the packages, 
 without regard to the greater number of wine-gallons 
 contained therein, then, and in such case, upon sale being 
 so made, tax-paid stamps to the amount required to at amp 
 such spirits as if the tax thereon were only on the proof- 
 gallons thereof, may, under such rules and regulations 
 as the Commissioner of Internal Revenue shall prescribe, 
 be used by the collector making such sale, or furnished by 
 a collector to a United States marshal, or to any other 
 government officer making such sale for the benefit of the 
 United States, witTiout making payment for said stamps 
 so used or delivered. Any collector using or furnishing 
 stamps in manner aforesaid, on presenting vouchers satis- 
 factory to the Commissioner of Internal Revenue, shall 
 be allowed credit for the same in settling his stamp ac- 
 count with the department. In such cases, the officer sell- 
 ing the distilled spirits shall affix, or cause to be affixed, 
 to the same the tax-paid stamps so provided, and shall 
 write across the face of such stamps the true number of 
 proof and wine gallons contained in the package, the 
 amount of tax actually paid thereon, and also the words 
 "Affixed under provisions of act of , 1879 " (insert- 
 ing the date of the approval of this act) . 
 
 In case spirits whicii have once paid the tax are seized 
 and sold under process of distraint for the collection of an 
 assessed tax they are not required to be sold subject to tax. 
 
 As to destruction of spirits which will not sell for a price 
 equal to tax on the proof gallons see last provision of sec- 
 tion 3450, p. 592. 
 
 IMPORTED LIQtrOE STAMPS, ETC. 
 
 Sec. 11. \_Act of March i, 1819 {20 Stat., 327).-] That.J-X;,;?,^ 
 all distilled spirits, wines, and malt liquors, imported mwines and mait 
 pipes, hogsheads, tierces, barrels, casks, or other similarstamped, etc. 
 packages, shall be first placed in public store or bonded 
 warehouse, and shall not be removed therefrom until the 
 same shall have been inspected, marked, and branded by a 
 United States customs-gauger, and a stamp affixed to 
 140184°— 20 x^Digitized by Microsoft® 
 
290 DISTILUiD SPIRITS. 
 
 each package, indicating the date and particulars of such 
 inspection; and the Secretary of the Treasury is hereby 
 authorized to prescribe the form of, and provide, the 
 requisite stamps, and to make all regulations which .he 
 may deem necessary and proper for carrying the fore- , 
 going requirepients into effect. 
 Forfeiture. Any pipe, hogshead, tierce, barrel, ^cask, or other pack- 
 
 age withdrawn from public store or bonded warehouse 
 after the thirtieth day of June, eighteen hundred and 
 seventy-nine, purporting to contain imported liquor, 
 found without having thereon the stamp hereby required, 
 shall be, with its contents, forfeited to the United States ; | 
 when^"i)ackt™es and whenever any cask or package of imported distilled i 
 jto '"?''flUed'"on spirits of not less than five wine-gallons is filled for ship- 
 the premiBes of ment, Sale, or delivery on the premises of any wholesale 
 Dor^Sta-." '^ liquor-dealer, the same shall be stamped with a special 
 stamp for imported spirits, under such rules and regula- 
 tions as the Commissioner of Internal Revenue has pre- 
 scribed, or may hereafter prescribe, in the case of domes- 
 tic distilled spirits. 
 
 Stamps for reimported domestic spirits. (27 Int. Rev. 
 Rec, 333.) 
 
 As to imported liquors. (See tariff act of October 3, 
 1913; par. F, Sec. IV.) 
 
 The importation of distilled spirits prohibited after Sep- 
 tember 9, 1917. (T. D. 37315.) 
 
 Sec. 12. [Act of March 1, 1879 (20 Stat., 327), as 
 When pack- amended by sec. 12, act of May 28, 1880 (21 Stat., i^^).] 
 ^^ iiquo™''°are "Hiat evcry person who empties or draws off, or causes to 
 to'^ie'^effaMd.™"^ ^® emptied or drawn off, the contents of any package of 
 imported liquors stamped as above required, shall, at the 
 time of such emptying, efface, obliterate, and destroy the 
 stamp thereon, and also all other marks or brands which 
 shall have been placed thereon in accordance with the 
 law or regulations concerning imported liquors. * * * 
 Every cask ir other package from which the stamp for 
 Penalty ior not imported liquors required by this act to be placed thereon 
 effacing stamps. gj^^|j ^^^^ |^g effaced, obliterated, or destroyed, on empty- 
 ing such package, shall be forfeited, and the same may be 
 seized, by any officer of internal revenue wherever found ; 
 and all the provisions and penalties of section thirty -three 
 hundred and twenty-four of the Revised Statutes of the 
 Bee. 3824. United States, relating to empty casks or packages from 
 which the marks, brands, or stamps have not been effaced 
 or obliterated, and relating to the removal of stamps from 
 packages, and to having in possession any stamps so 
 removed, shall apply to the stamps for imported spirits 
 herein provided for, and to the casks or other packages on 
 which such stamps shall have been used. 
 
 United States v. Morris Spiegel, 116 U. S., 270; 32 Int. 
 Rev. Rec, 54. 
 
 Sec. 13. [Act of March 1, 1879 {20 Stat. 327), as 
 amended hy sec. 13, act of May 28, 1880 {21 Stat., 145).] 
 
 Digitized by Microsoft® 
 
DISTILi,ED SPIRITS. 291 
 
 That if any person shall purchase or sell, with the im- (j^^^f^^^^j^ ' ° ' 
 ported-liquor stamp herein required remaining thereon, u!fti"^ empt^y 
 or any of the marks or brands which shall have been p^'ted "'"'amps; 
 placed thereon in accordance with the laws or regula- 1" ",' '^ "■ '^'<^- 
 tions concerning imported liquors remaining thereon, 
 any cask or other package, after the same has been once 
 used to contain imported liquors and has been emptied; 
 or if any person shall use or have in possession such cask 
 or package, with any imitation of such marks or brands, 
 for the purpose of placing domestic distilled spirits there- 
 in for sale, * * * every such cask or package, with 
 its contents, if any, shall be forfeited to the United 
 States. 
 
 And every such person who shall violate any of the pro- 
 visions of this section shall be liable to a penalty of. two p^°^"^- 
 hundred dollars for every such cask or package so pur- 
 chased, sold, manufactured, used, or had in possession. 
 
 Sec. 1. [Act of March 3, 1897 {29 Stat., 626).'] That distmed'"%irL' 
 whenever any distilled spirits deposited in the warehouse ■" bond. 
 of a distillery having a surveyed daily capacity of not 
 less than twenty bushels of grain, which capacity or not 
 less than twenty bushels thereof is commonly used by the 
 distiller, have been duly entered for withdrawal upon 
 payment of tax, or for export in bond, and have been 
 gauged and the required marks, brands, and tax-paid 
 stamps or export stamps, as the case may be, have been 
 affixed to the package or packages containing the same, 
 the distiller or owner of said distilled spirits, if he has . . 
 declared his purpose so to do in the entry for withdrawal, for^b'ottiing%r- 
 which entry for bottling purposes may be made by the ^^^^^ '" ™"- 
 owner as well as the distiller, may remove such spirits to 
 a separate portion of said warehouse which shall be set 
 apart and used exclusively for that purpose, and there, 
 under the supervision of a United States storekeeper, or 
 storekeeper and ganger, in charge of such warehouse, may 
 immediately draw off such spirits, bottle, pack, and case 
 the same : Provided, That for convenience in such process 
 any number of packages of spirits of the same kind, dif- 
 fering only in proof, but produced at the same distillery 
 by the same distiller, may be mingled together in a cistern 
 provided for that purpose, but nothing herem shall au- 
 thorize or permit any mingling of different products, or 
 of the same products of different distilling seasons, or the 
 addition or the subtraction of any substance or material 
 or the application of any method or process to alter or 
 change in any way the original condition or character of 
 the product except as herein authorized; nor shall there 
 be at the same time in the bottling room of any bonded 
 warehouse any spirits entered for withdrawal upon pay- 
 ment of the tax and any spirits entered for export : Pro- Reguiatio™. 
 vided also, That under such regulations and limitations 
 as the Commissioner of Internal Revenue, with the ap- 
 proval of the Secretary of the Treasury, may prescribe, 
 the provisions of th.Wi§m&^m/\^cm^^ apply to the 
 
292 
 
 DISTILLED SPIEITS. 
 
 bottling and casing of fnut brandy in special bonded' 
 warehouses, 
 stranp, how Everj bottle when filled shall have affixed thereto and 
 passing over the mouth of the same such suitable adhesive 
 engraved strip stamp as may be prescribed, as hereinafter 
 provided, and shall be packed into cases to contain six 
 bottles or multiples thereof, and in the aggregate not less 
 than two nor more than five gallons in each case, which 
 shall be immediately removed from the distillery prem- 
 cases to have Ises. Each of such cases shall have affixed thereto a 
 
 stamp affixed, gtamp denoting the number of gallons therein contained, 
 such stamp to be affixed to the case before its removal 
 from the warehouse, and such stamps shall have a cash 
 value of ten cents each, and shall be charged at that rate 
 to the collectors to whom issued, and shall be paid for at 
 that rate by the distiller or owner using the same. 
 Branding of And there shall be plainly burned on the side of each 
 
 '^'^' case, to be known as the Government side, the proof of 
 
 the spirits, the registered distillery number, the State 
 and district in which the distillery is located, the real 
 name of the actual bona fide distiller, the year and distill- 
 ing season, whether spring or fall, of original inspection 
 or entry into bond, and the date of bottling, and the same 
 wording shall be placed upon the adhesive engraved strip 
 stamp over the mouth of the bottle. It being understood 
 that the spring season shall include the months from 
 January to July, and the fall season the months from 
 July to January. 
 
 And no trade marks shall be put upon any bottle unless 
 the real name of the actual bona fide distiller shall also 
 be placed conspicuously on said bottle. 
 
 Combination cases of spirits bottled in bond. (T. D. 
 888.) 
 
 Case stamps for distilled spirits bottled for export. (Clr. 
 No. 6; Int. Rev. Cir. No. 489; T. D. 18763.) 
 
 Stamps to be in custody of storekeeper ganger. (T. I>. 
 2034.) 
 
 Spirits to be immediately bottled, cased, and removed. 
 (T. D. 2480.) 
 
 Case stamps. (Cir. No. 55; Int. Rev., 492; T. D. 191.55; 
 Cir. No. 552; T. D. 32.) 
 
 What the Government stamp on bottled-in-bond goods 
 guarantees as to purity or quality of the spirits. The Gov- 
 ernment assumes no I'esponsibility with respect to claims of 
 dealers in advertising spirits. (T. D. 1299.) 
 
 Using undersized bottles or underfilling bottles when 
 bottling spirits In bond prohibited. Suspension of issue of 
 stamps on account of persistent violation of requirements, 
 and forfeiture of goods in certain cases. (Circular letter, 
 Oct. 6, 1897; 43 Int. Rev. Rec, 374; T. D. 2498.) 
 
 Bottling of spirits in bond. No foreign materials to be 
 added. (T. D. 1433.) 
 
 Bottling warehouses for use of different distilleries. (T. 
 D. 581 ; Clr. No. 631 ; T. D. 555 ; Regulations, No. 23, revised, 
 p. 14.) 
 
 Cases of spirits bottled in bond should be entered on Form 
 52. (T. D. 808; Regulations, No. 23, revised, p. 24.) 
 
 Testing bottles for containing bottled-in-bond spirits. 
 (Cir.JSFo.,.681;,T. R.. 991 andT. D. 1063; Regulations, No. 
 23, rim^^fi^y W&IOmipE. D, 2498.) 
 
 Trade markB. 
 
DISTILLED SPIRITS. 293 
 
 Stamps and brands on cases of bottled-ln-bond whisky 
 should be kept Intact. (T. D. 1076.) See sec. 3324. 
 
 Serial numbers may be stenciled. (T. D. 2419.) 
 
 Marks and brands may be imprinted or embossed. (T. 
 D. 2492.) 
 
 Discontinuance of serial numbers on case and strip 
 stamps. (T. D. 1573.) 
 
 Caution notice on spirits bottled in bond. (T. D. 1491.) 
 Art. 32, Regulations, No. 23, p. 19. 
 
 Tax will be assessed and collected on gains in bottling in 
 excess of one-half gallon per package. Art. 22, Regulations, 
 No. 23, revised. 
 
 Bottled-in-bond whisky. Wheie proof is less than 99 per 
 cent. (T. D. 943.) 
 
 Where proof Is over 100.3 per cent. (T. D. 2432.) 
 
 Marks and brands imprinted or embossed on loose sheet 
 to be attached to Government side of case permitted. 
 (T. D. 2492.) 
 
 No longer necessary to fill out indorsement fold on requi- 
 sitions for stamps. (T. D. 1756.) 
 
 Sec. 2. [Act of March 3, 1897 {29 Stat, 6S6).] That 
 the Commissioner of Internal Revenue, with the approval 
 of the Secretary of the Treasury, may, by regulations, 
 prescribe the mode of separating and securing the addi- 
 tional warehouse, or portion of the warehouse herein- 
 before required to be set apart, the manner in which the 
 business of bottling spirits in bond shall be carried on. 
 the notices, bonds, and returns to be given and accounts 
 and records to be kept by the persons conducting such 
 business, the mode and time of inspection of such spirits, inspection o( 
 the accounts and records to be kept and returns made by =?'"*«• 
 the Government officers, and all such other matters and 
 things, as in his discretion, he may deem requisite for a 
 secure and orderly supervision of said business; and he 
 may also, with the approval of the Secretary of the Treas- 
 ury, prescribe and issue the stamps required. 
 
 The distiller may, in the presence of the United States 
 storekeeper or storekeeper and ganger, remove by strain- 
 ing through cloth, felt, or other like material any charcoal, 
 sediment or other like substance found therein, and may 
 whenever necessary reduce such spirits as are withdrawn j^|^p ^^ ' '^j^/^- 
 for bottling purposes by the addition of pure water only water. 
 to one hundred per centum proof for spirits for domestic 
 use, or to not less than eighty per centum proof for 
 spirits for export purposes, under such rules and regula- 
 tions as may be prescribed by the Commissioner of In- 
 ternal Revenue with the approval of the Secretary of the 
 Treasury ; and no spirits shall be withdrawn for bottling 
 under this Act until after the period shall have expired 
 within which a distiller may request a regauge of dis- 
 tilled spirits as provided in section fifty of the Act of 
 August twenty-eighth, eighteen hundred and ninety-four. 
 
 No spirits to be withdrawn for bottling until the expira- 
 tion of four years from the date of deposit in warehouse. 
 (Art. 14, Regulations No. 23.) 
 
 A filtering apparatu.s, packed with cloth, felt, or other like 
 material, such as cotton fiber or wood or paper pulp, may 
 
 Digitized by Microsoft® 
 
No drawback. 
 
 294 DISTILLED SPIRITS. 
 
 be used for straining spirits to be bottled in bond. Permis- 
 sion to use such filters will be granted only upon the ex- 
 press condition that the packing material is one mentioned in 
 the statute, or similar thereto, and that in no case shall 
 charcoal, boneblack, etc., be used, as such materials might 
 effect changes in the spirits other than the mechanical re- 
 moval of matter In suspension. (T. D. 21106; Regulations 
 No. 23, revised, p. 11. ) , 
 
 The distiller is responsible for the correctness <jf the 
 proof. (T. D. 930; T. D. 936.) 
 
 J^MU for ex- g^^ ^ j-^^^ ^^ ^^^^^ g^ jgg,j, ^^g ^^^^_^ g^g^ -j rpj^^^ ^jj 
 
 distilled spirits intended for export under the provisions 
 of this Act shall be inspected, bottled, cased, weighed, 
 marked, labeled, stamped, or sealed in such manner and 
 at such time as the Commissioner of Internal Kevenue 
 may prescribe; and the said Commissioner, with the ap- 
 pi-oval of the Secretary of the Treasury, may provide such 
 regulation^ for the transportation, entry, reinspection, 
 and lading of such spirits for export as may from time to 
 Existing laws time be deemed necessary ; and all provisions of existing 
 made applicable, j^^ relating to the exportation of distilled spirits in bond, 
 so far as applicable, and all penalties therein imposed, are 
 hereby extended and made applicable to distilled spirits 
 bottled for export under the .provisions of this Act, but 
 no drawback shall be allowed or paid upon any spirits 
 bottled under this Act. 
 
 Bottling gin for export. ( See sec. 626, act of February 24, 
 1919, p. 286.) 
 
 Reimportation of distilled spirits Itottled in bond below 
 proof for export. (T. D. 1006.) 
 
 Bottled spirits for export. (Cir. 719; T. Ds. 1338, 17T7.) 
 
 Marking cases for export. (T. D. 2486.) 
 
 or'5eflcilncy.'°°° Sec. 4. [Aot of March S, 1897 (39 Stat., 626).] That 
 where, upon inspection at the bonded warehouse in which 
 the spirits are bottled as aforesaid, the quantity so bottled 
 and cased for export is less than the quantity actually con- 
 tained in the distiller's original casks or packages at the 
 time of withdrawal for that purpose the tax on the loss 
 or deficiency so ascertained shall be paid before the re- 
 moval of the spirits from such warehouse, and the tax so 
 paid shall be receipted and accounted for by the collector 
 in such manner as the Commissioner of Internal Eevenue 
 may prescribe. 
 
 Beimpection. Qw. b. [Act of March 3, 1897 {29 Stat., 626) .] That 
 A\here. upon reinspection at the port of entry, any case con- 
 taining or purporting to contain distilled spirits for ex- 
 port is found to have been opened or tampered with, or 
 where any mark, brand, stamp, label, or seal placed thereon 
 or upon any bottle contained therein has been removed, 
 changed, or willfully defaced, or where upon such rein- 
 spection any loss or discrepancy is found to exist as to 
 the contents of any case so entered for export, the tax on 
 the spirits contained in each such case at the time of its 
 removal from warehouse shall be collected and paid. 
 
 Penalties. Sec. 6. [Act of MavchS, 1897 {29 Stat., 626) .] That any 
 
 person w^g^^r^gj^sj^^^s^Jj^p provided under this Act 
 
DISTILLED SPIRITS. 295 
 
 after the same shall have been once affixed to a bottle as 
 provided herein, or who shall reuse a bottle for the purpose 
 of containing distilled spirits which has once been filled 
 and stamped under the provisions of this Act without re- 
 moving and destroying the stamp so previously affixed 
 to such bottle, or who shall, contrary to the provisions of 
 this Act or of the regulations issued thereunder remove or 
 cause to be removed from any bonded warehouse any 
 distilled spirits inspected or bottled under the provisions 
 of this Act, or who shall bottle or case any such spirits in 
 violation of this Act or of any regulation issued there- 
 under, or Avho shall, during the transportation and before 
 the exportation of any such spirits, open or cause to be 
 opened any case or bottle containing such spirits, or who 
 shall willfully remove, change, or deface anj' stamp, 
 brand, label, or seal affixed to any such case or to any bottle 
 contained therein, shall for each such offense be fined not 
 less than one hundred nor more than one thousand dollars, 
 and be imprisoned not more than two years, in the dis- 
 cretion of the court, and such spirits shall be forfeited to 
 the United States. 
 
 Refilling with spirits bottles previously used for bottling 
 spirits in bond without destroying the stamps. (Cir. No. 
 647; T. D. 696.) 
 
 Refilling bottles. Guilty intent is not an element of the 
 offense. The principal is criminally liable for the acts of 
 his agent or employee. (United States v. Guthrie, 171 
 Fed., 528; T. D. 1520.) 
 
 Insufiicient evidence. (Duff v. United States, 185 Fed.. 
 101.) 
 
 Sec. 7. lAct of March 3, 1897 {Jfi Stat., 626). -] That ,to?"tmil'"'^' 
 every person who, with intent to defraud, falsely makes, 
 forges, alters, or counterfeits any stamp made or used 
 under any provision of this Act, or who uses, sells, or has 
 in his possession any such forged, altered, or counter- 
 feited stamp, or any plate or die used or which may be 
 used in the manufacture thereof, or who shall make, use, 
 sell, or have in his possession any paper in imitation of 
 the paper used in the manufacture of any stamp required 
 by this Act, shall on conviction be punished by a fine not 
 exceeding one thousand dollars and by imprisonment at 
 hard labor not exceeding five years. 
 
 Sec. 8. [Act of March 3, 1897 {29 Stat., 626) r\ That i8?e ^' ' 
 
 nothing in this Act shall be construed to exempt spirits 
 bottled under the provisions of this Act from the opera- 
 tion of chapter seven hundred and twenty-eight of the 
 public laws of the Fifty-first Congress, approved August 
 eighth, eighteen hundred and ninety. 
 
 Act of August 8, 1890 (26 Stat, 313) : That all fermented, 
 distilled, or other intoxicating liquors or liquids transported 
 into any State or Territory, or remaining therein for use, 
 consumption, sale, or storage therein, shall upon arrival in 
 such State or Territory be subject to the operation and effect 
 of the laws of such State or Territory enacted in the exer- 
 cise of its police powers, to the same extent and in the same 
 manner as though E)f0^%&^M)iWSdf^ ''''®° produced 
 
296 DISTTT.T.BD SPIBITS. 
 
 in such State or Territory, and shall not be exempt there- 
 from by reason of being Introduced therein in original pack- 
 ages or otherwise. (In re Rahrer, 140 U. S., 545; 37 Int. 
 Rev. Rec. 230 ; Rhodes i;. Iowa, 170 U. S. 412. ) 
 
 Provisions of the Criminal Code (act of March 4, 1909) 
 relative to interstate shipments of distilled spirits. (See 
 Appendix, p. 681.) 
 
 shipmenta into [Act of MoTch 1, 1913 (37 Stat., 699) .] The shipment 
 violation of law or transportation, m any manner or by any means what- 
 ttereof prohib- goever, of any spirituous, vinous, malted, fermented, or 
 other intoxicating liquor of any kind, from any State, 
 Territory, or District of the United States, or place non- 
 contiguous to but subject to the jurisdiction thereof, 
 into any other State, Territory, or District of the United 
 States, or place noncontiguous to but subject to the 
 jurisdiction thereof, or from any foreign country into 
 any State, Territory, or District of the United States, or 
 place noncontiguous to but subject to the jurisdiction 
 thereof, which said spirituous, vinous, malted, fermented, 
 or other intoxicating liquor is intended, by any person 
 interested therein, to be received, possessed, sold, or in 
 any manner used, either in the original package or other- 
 wise, in violation of any law of such State, Territory, or 
 District of the United States, or place noncontiguous to 
 but subject to the jurisdiction thereof, is hereby pro- 
 hibited. 
 
 Act is constitutional. (United States v. Oregon-Wash- 
 ington Railroad & Navigation Company, 210 Fed., 378.) 
 
 This law does not apply to shipments of liquor from 
 Tennessee to Kentucky for personal use. (Adams Express 
 Co. V. Kentucky, 238 U. S., 190.) 
 
 This act is not out of harmony with applicability of sec- 
 tion 3281 to prohibition States. (United States i\ Lazzaro, 
 255 Fed., 237.) 
 
 iD*erta?nXte° Sec. 5. [Act of Mavch 3, 1917 {39 Stat., 1069).} No 
 letter, postal card, circular, newspaper, pamphlet, or 
 publication of any kind containing any advertisement of 
 spirituous, vinous, malted, fermented, or other intoxi- 
 cating liquors of any kind, or containing a solicitation of 
 an order or orders for said liquors, or any of them, shall 
 be deposited in or carried by the mails of the United 
 States, or be delivered by any postmaster or letter car- 
 rier, when addressed or directed to any person, firm, 
 corporation, or association, or other addressee, at any 
 place or point in any State or Territory of the United 
 States at which it is by the law in force in the State or 
 Territory at that time unlawful to advertise or solicit 
 orders for such liquors, or any of them respectively. 
 
 If the publisher of any newspaper or other publica- 
 tion or the agent of such publisher, of if any dealer in 
 such liquors or his agent, shall knowingly deposit or 
 cause to be deposited, or shall knowingly send or cause 
 to be sent, anything to be conveyed or delivered by mail 
 in \'iolation of the provisions of this section, or shall 
 knowingly deliver or cause to be delivered by mail any- 
 thing hei)g)^Yy|g|^^^(^^J^^arried by mail, shall be 
 
DISTILLED SPIRITS. 297 
 
 fined not more than $1,000 or imprisoned not more than 
 six months, or both; and for any subsequent offense shall 
 be imprisoned not more than one year. Any person vio- 
 lating any provision of this section may be tried and 
 punished, either in the district in which the unlawful 
 matter or publication was mailed or to which it was 
 carried by mail for delivery, according to direction there- 
 of, or in which it was caused to be delivered by mail to 
 the person to whom it was addressed. Whoever shall state*%TOhiwt° 
 order, purchase, or cause intoxicating liquors to be trans- in? sale. 
 ported in interstate commerce, except for scientific, sacra- 
 mental, medicinal, and mechanical purposes, into anj 
 State or Territory the laws of which State or Territory 
 prohibit the manufacture or sale therein of intoxicating 
 liquors for beverage purposes shall be punished, as afore- 
 said: Provided, That nothing herein shall authorize the 
 shipment of liquor into any State contrary to the laws 
 of such State: Provided further, That the Postmaster , 
 
 General is hereby authorized and directed to make public 
 from time to time in suitable bulletins or public notices 
 the names of States in which it is unlawful to advertise 
 or solicit orders for such liquors. 
 
 By act of March 4, 1917 (39 Stat, 1202), It was pro- 
 vided that the provisions of this section should not be in 
 efEect until July 1, 1917. 
 
 This act is not out of harmony with applicability of sec- 
 tion 3281 to prohibition States, (United States v. Lazzaro, 
 255 Fed., 237.) 
 
 There may be a conspiracy to violate this section by 
 transpo*rting liquor into a prohibition State, indictable 
 under Ci'iminal Code, section 37. (Laughter v. United 
 States, 259 Fed., 94.) 
 
 To render this section applicable to a State, it must have 
 adopted a general policy of prohibition throughout its 
 territory, but it is not essential that such prohibition should 
 be literally without exception; both the sale and manufac- 
 ture of liquor for sale as a beverage are prohibited under 
 various statutes of Tennessee throughout the State, and 
 transportation of liquor into State for beverage purposes 
 is in violation of this section. (Id.) 
 
 Conviction of transporting liquor into a State, in viola- 
 tion of tills section, reversed, trial having been under mis- 
 conception that defendant could be convicted, though liq- 
 uor was merely being carried through the State. (Preyer v. 
 United States, 260 Fed., 157.) 
 
 One buying intoxicating liquor in one State and trans- 
 porting it in his own automobile into a prohibition State for 
 his own personal use, and not for sale, does not transport 
 it in interstate commerce, within this section. (United 
 ' States V. Simpson, 257 Fed., 860.) 
 
 Sec. 1110. {Act of Octoher 3y 1917 {Jfl Stat., SOO).] construction of 
 That section five of the Act approved March third, ^fX s!' im."* 
 nineteen hundred and seventeen, entitled "An Act mak- 
 ing appropriations for the Post Ofiice Department for 
 the year ending June thirtieth, nineteen hundred and 
 eighteen," shall not be construed to apply to ethyl alcohol 
 for governmental, scientific, medicinal, mechanical, 
 manufacturing, and industrial purposes, and the Post- 
 master General shall ^iSHim^^ikMM^m^s and regula- 
 
298 DISTILLED SPIRITS. 
 
 tions to carry into effect this section in connection with 
 the Act of which it is amendatory, nor shall said section 
 be held to prohibit the use of the mails by regularly 
 ordained ministers of religion, or by officers of regularly 
 established churches, for ordering wines for sacramental 
 uses, or by manufacturers and dealers for quoting and 
 billing such wines for such purposes only. 
 ^ Extendon^ of Sec. 1407. {Act of February U-, 1919 {Ifi Stat., 1057).'] 
 1917? as ™end- That the provisions of section 5 of the Act entitled " An 
 of ' Columbia.'™* ^^^ making appropriations for the service of the Post 
 Office Department for the fiscal year ending June 30, 
 1918, and for other purposes," approved March 3, 1917, 
 relating to intoxicating liquors in interstate commerce, 
 as amended by section 1110 of an Act entitled "An Act 
 to provide revenue to defray war expenses, and for other 
 purposes," approved October 8, 1917, be, and the same 
 are hereby, made applicable, to the District of Columbia. 
 
 DENATURED ALCOHOL.i 
 
 [Act of June 7, 1906 (34 Stat., 217).] 
 
 AN ACT For the withdrawal from bond, tax free, of domestic 
 alcohol when rendered unfit for beverage or liquid medicinal 
 uses by mixture with suitable denaturing materials. 
 
 Domestic aico- Sec. 1. That from and after January first, nineteen 
 wuhdrawn'^ tax- hundred and seven, domestic alcohol of such degree of 
 ration.""^ denatu- proof as may be prescribed by the Commissioner of Inter- 
 nal Revenue, and approved by the Secretary of the Treas- 
 ury, may be withdrawn from bond without the payment 
 of internal-revenue tax, for use in the arts and industries, 
 and for fuel, light, and power, provided said alcohol shall 
 have been mixed in the presence and under the direction 
 of an authorized Government officer, after withdrawal 
 from the distillery warehouse, with methyl alcohol or 
 other denaturing material or materials, or admixture of 
 the same, suitable to the use for which the alcohol is with- 
 drawn, but which destroys its character as a beverage 
 How and where ^ud renders it unfit for liquid medicinal purposes ; such 
 denatured. denaturing to be done upon the application of any regis- 
 
 tered distillery in denaturing bonded warehouses spe- 
 cially designated or set apart for denaturing purposes 
 only, and under conditions prescribed by the Commis- 
 sioner of Internal Revenue with the approval of the Sec- 
 retary of the Treasury. 
 Denaturing The charactcr and quantity of the said denaturing 
 "Ascribed'" b''y material and the conditions upon which said alcohol may 
 Commissioner, ^g withdrawn free of tax shall be prescribed by the Com- 
 missioner of Internal Revenue, who shall, with the ap- 
 proval of the Secretary of the Treasury, make all neces- 
 sary regulations for carrying into effect the provisions of 
 this Act. 
 Books and rec- DistiUcrs, manufacturers, dealers and all other persons 
 Bo^nd'9''\o''^'be fumishing, handling or using alcohol withdrawn from 
 given. bond undcr the provisions of this Act shall keep such 
 
 Digitized^t^Mim^SftPso. so. 
 
DISTILLED SPIRITS. 299 
 
 books and records, execute such bonds and render such 
 returns as the Commissioner of Internal Eevenue, with 
 the approval of the Secretary of the Treasury, may by 
 regulation require. Such books and records shall be open 
 at all times to the inspection of any internal-revenue 
 officer or agent. 
 
 / See notes on pages 301, 302. 
 
 Denatured alcohol brought from Porto Kieo subject to 
 tax. (T. D. 1450.) But undenatured alcohol brought from 
 Porto Rico may be denatured in the United States free of 
 tax. (T. Ds. 2575, 2641.) 
 
 Sec. 2. That any person who withdraws alcohol free Penalty for im- 
 of tax under the provisions of this Act and regulations g™^^^ uTe'^a 
 made in pursuance thereof, and who removes or conceals beverage, or tor 
 
 . T . ^ . T . , . , medicinal p u r- 
 
 same, or is concerned m removing, depositing or conceal- pose, 
 ing same for the purpose, of preventing the same from 
 being denatured under governmental supervision, and 
 any person who uses alcohol withdrawn from bond under 
 the provisions of section one of this Act for manufactur- 
 ing any beverage or liquid medicinal preparation, or 
 knowingly sells any beverage or liquid medicinal prepa- 
 ration made in whole or in part from such alcohol, or 
 knowingly violates any of the provisions of this Act, or 
 who shall recover or attempt to recover by redistillation 
 or by any other process or means, any alcohol rendered 
 unfit for beverage or liquid medicinal purposes under 
 the provisions of this Act, or who knowingly uses, sells, 
 conceals, or otherwise disposes of alcohol so recovered or 
 redistilled, shall on conviction of each offense be fined 
 not more than five thousand dollars, or be imprisoned not 
 more than five years, or. both, and shall, in addition, for- 
 feit to the United States all personal property used in 
 connection with his business, together with the buildings 
 and lots or parcels of ground constituting the premises 
 on which said unlawful acts are performed or permitted 
 to be performed : Provided^ That manufacturers employ- ^ v "^i «- 
 ing processes in which alcohol, used free of tax under the denatured, 
 provisions of this Act, is expressed or evaporated from 
 the articles manufactured, shall be permitted to recover 
 Kuch alcohol and to have such alcohol restored to a con- 
 dition suitable solely for reuse in manufacturing pro- 
 cesses under such regulations as the Commissioner of In- 
 ternal Eevenue, with the approval of the Secretary of the 
 Treasury shall prescribe. 
 
 For instructions as to applications, entrips, bonds, etc., 
 see Kegulations No. 30, revised October 12, 1917. 
 
 Sec. 3. {Olsolete.) 
 
 This section provided an appropriation for payment of 
 an additional force of chemists, internal-revenue agents, 
 inspectors, deputy collectors, clerks, laborers, and other 
 assistants, the force authorized to be appointed by the 
 Commissioner of Internal Revenue, with the approval of 
 the Secretary of the Treasury, for a period of two years 
 without compliance, .with the conditions prescribed by the 
 civil-service act of 9<fflfe#^feyMerOSO/f® 
 
300 DISTIIULED SPIRITS. 
 
 Sec. 4. {Ohsolete.) 
 
 This section provided for a report to Congress at its next 
 session of all appointments made under the provisions of 
 this act and regulations prescribed and for a report of 
 any additional legislation necessary to safeguard the reve- 
 nue and secure a proper enforcement of the law. 
 
 [Amendment to tbe act of June 7, 1906.] 
 
 AN ACT TO amend an Act entitled " An Act for the withdrawal 
 from bond tax free of domestic alcohol when rendered unfit 
 for beverage or liquid medicinal uses by mixture with suitable 
 denaturing materials," approved June 7, 1906. (Act of March 
 2, 1907; 34 Stat., 1250.) 
 
 cohor'mT'^ be ^^*^' ^' ^^^^ notwithstanding anything contained in 
 used in manu- the Act entitled " An Act for the withdrawal from bond 
 cworoform, ''and t^x free of domestic alcohol when rendered unfit for bev- 
 eubrtance*™'"^^ erage or liquid medicinal uses by mixture with suitable 
 denaturing material," approved June seventh, nineteen 
 hundred and six, domestic alcohol when suitably dena- 
 tured may be withdrawn from bond without the payment 
 of internal-revenue tax and used In the manufacture of 
 ether and chloroforin and other definite chemical sub- 
 stances where said alcohol is changed into some other 
 chemical substance and does not appear in the finished 
 1 ^"""haiT* 150° P'^'^'i^'^t as alcohol : Provided, That rum of not less than 
 prMf may be One huudred and fifty degrees proof may be withdrawn, 
 denaturat?on.' ° ^ ^^^ denaturation only, in accordance with the provisions 
 of said Act of June seventh, nineteen hundred and six, 
 and in accordance with the provisions of this Act. 
 
 turfn^'iTo n'^dTd ^^^' ^- '^^^ ^^^ Commissioner of Internal Revenue, 
 warehouses may with the approval of the Secretary of the Treasury, may 
 be e->tabiished. authorize the establishment of central denaturing bonded 
 jvarehouses, other than those at distilleries, to which 
 alcohol of the required proof may be transferred from 
 distilleries or distillery bonded warehouses without the 
 payment of internal-revenue tax, and in which such 
 alcohol may be stored and denatured. The establish- 
 ment, operation, and custody of such warehouses shall be 
 under such regulations and upon the execution of such 
 bonds as the Commissioner of Internal Revenue, with the 
 approval of the Secretary of the Treasury, may pre- 
 scribe. 
 
 Loss of alcohol while in transit from distillery bonded 
 warehouse to central denaturing bonded warehouse. (T. D. 
 2348.) 
 
 pipTs'Krfrom ^^^- ^- "^^^^ alcohol of the required proof may be 
 cisterns may be drawn off, for deuaturation only, from receiving cisterns 
 d cT'"prcscribrd 1" the cistem room of any distillery for transfer by pipes 
 repiiations. djrect to any denaturing bonded warehouse on the distil- 
 lery premises or to closed metal storage tanks situated in 
 the distillery bonded warehouse, or from such storage 
 tanks to any denaturing bonded warehouse on the dis- 
 tillery premises, and denatured alcohol may also be trans- 
 ported from the denaturing bonded warehouse, in such 
 manner a^^^^gfig^y^^l}}^ packages, tanks or tank 
 
DISTttliED SPIRITS. 301 
 
 cars, and on the execution of such bonds, and under such 
 regulations as the Commissioner of Internal Eevenue, 
 ■with the approval of the Secretary of the Treasury, may 
 prescribe. And further, alcohol to be denatured may be 
 withdrawn without the payment of internal-revenue tax Aicohoi may 
 from the distillery bonded warehouse for shipment to ^r^o m^dMUCTy 
 central denaturing plants in such packages, tanks and warehouse f o i 
 
 .1 11 1 i- ^ 1 ,^ ,- shipment to ceii- 
 
 tank cars, under such regulations, and on the execution trai denatmi.ig 
 of such bonds as may be prescribed by the Commissioner hous" !' " ^ """' 
 of Internal Revenue, with the approval of the Secretary 
 of the Treasury : Provided, That where alcohol is with- Allowance for 
 drawn from a distillery warehouse for shipment to a cen- ^ot^Tu n e ^m! 
 tral denaturing bonded warehouse under the provisions 233^)' ^^ ^''"■' 
 of this Act it shall be lawful under such rules, regula- 
 tions, and limitations as shall be prescribed by the Com- 
 missioner of Internal Revenue, with the approval of the 
 Secretary of the Treasury, for an allowance to be made 
 for leakage or loss by any accident, and without any 
 fraud or negligence of the distiller, owner, carrier, or 
 their agents or employees, occurring during transporta- 
 tion from a distillery warehouse to a central denaturing 
 bonded warehouse. 
 
 Transferring alcohol from difCerent distilleries under 
 one bond. (T. D. 2630.) 
 
 Alcohol may be transferred directly from weighing tank 
 to tank cars for shipment to central denaturing ware- 
 houses. (T. D. 2294) 
 
 Keys to tank-car locks to be sent to point of destination 
 and returned at Government expeuse. (T. D. 1844.) 
 
 Sec. 4. {Repealed hy section IV, Par. A^, subsection 2, 
 act of Octoler3,1913.) 
 
 Sec. 5. That the provisions of this Act shall take effect 
 on 'September first, nineteen hundred and seven. 
 
 Circular 721, April 27, 1908, relates to the use of stills by 
 agricultural experiment stations. (T. D. 1347.) 
 
 Suggestions regarding the manufacture of denatured alco- 
 hol at small di&tilleries — Materials available for such use. 
 (Int. Rev. Cir., 706; T. D. 1242.) 
 
 Denatured-alcohol regulations explained. Instructions to 
 collectors, revenue agents, and other internal-revenue field 
 officers concerning the sale and use of denatured alcohol. 
 (T. D. 1250.) 
 
 Circular relative to reports of manufacturers or whole- 
 sale dealers handling denatured alcohol. (Cir. No. 732; 
 T. D. 1438.) 
 
 Retail dealers permitted to draw off denatured alcohol 
 from original packages and sell in quantities not exceeding 
 10 gallons at any one time. (T. D. 1392.) 
 
 Completely denatured alcohol can not be lawfully sold 
 for bathing purposes or any medicinal use. (T. D. 1495.) 
 
 Formula 23 for special denaturation of alcohol to be 
 used in manufacture of liniment. (T. D. 2379.) 
 
 Formula for special denaturation of alcohol to be used 
 in manufacture of pheiiacetin. (T. Ds. 2381, 2658.) 
 
 Formula 6-B, containing pyridine as denaturant, ex- 
 tended for those purposes for which special formula 17 
 had theretofore been authorized. (T. D. 2484.) 
 
 Formulas for mixture of .alcohpl withdrawn for use in 
 hospitals, etc., witP#rii#i&y W/D^aWB!) 
 
302 DISTILLED SPIBITS. 
 
 Formulas for purpose of rendering alcohol unfit for bev- 
 erage. (T. D. 2760.) 
 
 Specification for acetone content in denaturing grade of 
 wood alcohol. (T. D. 2587.) 
 
 Formula 3-A for special denaturation of alcohol for use 
 In manufacture of transparent soap. (T. D. 2820.) 
 
 Formula 31, for manufacture of toothpaste. (T. D. 2819.) 
 
 Labels. (T. Ds. 2760, 2914.) 
 
 Formula 30 for special denaturation of alcohol for use 
 by chemical and physical laboratories. (T. D. 2793.) 
 . Formula 29 for denaturation of alcohol for use in manu- 
 
 facture of glacial acetic acid. (T. D. 2758.} 
 
 Formula for tincture of iodine. (T. Ds. 2413, 2527.) 
 
 Bromine absorption number; in testing wood alcohol, 
 rate of flow through the burette shall not exceed 5 c. c. per 
 minute. (T. D. 1978.) 
 
 Specifications of sulphuric acid for denaturing purposes. 
 (T. D. 2658.) 
 
 Acetate of Ume formulas. (T. D. 2252.) 
 
 Specifications for wood alcohol used as denaturant 
 changed. (T. D. 2268.) 
 
 Formaldehyde solution formula. (T. D. 2826.) 
 • Modification of formula used in denaturing for manu- 
 facturers of tobacco. (T. D. 1975.) 
 
 Formula 12 for specially denatured alcohol modified. 
 (T. D. 1758.) 
 
 Callodion formulas. (T. D. 2241.) 
 
 Soap formulas. (T. Ds. 1831, 2465.) 
 
 Specifications of acetone content in denaturing grade of 
 wood alcohol changed. (T. D. 2779.) 
 
 Formul.i 19 extended to preparation of callodion back- 
 ings. '(T. Ds. 1842, 1899.) 
 
 Chloroform formula. (T. D. 2234.) 
 
 Sulphuric ether formula. (T. Ds. 2246, 2312.) 
 
 Formula for special denaturation of alcohol to be used 
 exclusively in manufacture of ethylaniline and diethylani- 
 Une. (T. D. 2430.) 
 
 Formulas for lacquers for food containers. (T. D. 1861.) 
 
 Alternative formula for smokeless po\v<ler authorized and 
 formula 19 extended so as to include its use as solvent for 
 nitrocellulose. (T. D. 1876.) 
 
 Pyroxylin plastics formula. (T. D. 1954.) 
 
 Formula for complete denaturation of alcohol for use as 
 motive power. (T. D. 2528.) 
 
 Regulations for withdrawal of specially denatured alco- 
 hol for manufacturing purposes. (T. D. 1860.) 
 
 Manufacturers using specially denatur(»d alcohol re- 
 quired to keep daily record. (T. DS.-1842, 1898.) 
 
 Modified special denaturant used in manufacture of 
 smoking and chewing tobacco to apply to both alcohol and 
 rum. (T. D. 1981.) 
 
 Formula 28 for special denaturation of alcohol for use 
 In manufacture of motor fuel. (T. D. 2769.) 
 
 Use of lead plates attached to drums containing de- 
 natured alcohol of not less than one-fourth inch in thickness 
 permitted. (T. D. 2751.) 
 
 Shipments of alcohol in tanks or tank cars for denatura- 
 tions. (T. D. 2746.) 
 
 Manufactureby Sec. IV. Pae. N, Subsection 2. [Act of October 3, 
 h™ denatura'- WIS {38 Stat., 199).] That -from and after the first day 
 *'''"• of January, nineteen hundred and fourteen, under such 
 
 regulations as the Commissioner of Internal Revenue, 
 withithe approval, of the Secretary of the Treasury may 
 prescribe, any farmer or association of farmers, any fruit 
 grower o^^^^g^^^yj^^^^growers, or other person or 
 
DISTILXiED SPIRITS. 303 
 
 persons may manufacture alcohol free of tax for denaturi- 
 zation only, out of any of the products of farms, fruit 
 orchards, or any substance whatever, on condition that 
 such alcohol shall be directly conveyed from the still by 
 continuous closed pipes to locked and sealed receptacles 
 in which the same may be rendered unfit for use as an 
 intoxicating beverage by an admixture of such denaturing 
 materials as the Commissioner of Internal Eevenue, with 
 the approval of the Secretary of the Treasury, may pre- 
 scribe, or where such alcohol is of insufficient proof to be 
 denatured, the same may be transferred in bond from such 
 locked and sealed receptacles' to a central distilling and 
 denaturing plant as hereinafter provided. 
 
 That the Commissioner of Internal Eevenue, with the central distm- 
 approval of the Secretary of the Treasury, may authorize tSfin/ plantt"^' 
 the establishment of central distilling and denaturing 
 plants to which alcohol produced under the provisions of 
 this act, free of tax, may be transferred, redistilled and 
 denatur;ed under such regulations, and upon the execu- 
 tion of such notices and bonds as the Commissioner of 
 Internal Revenue, with the approval of the Secretary of 
 the Treasury, may prescribe. 
 
 Porto Rican alcohol regarded as domestic alcohol, and, as 
 such, may be denatured free of tax. (Opin. Atty. Gen., 
 December 20, 1917; T. D. 2575.) 
 
 That any central distilling and denaturing plant pro- Manufacture of 
 vided for in section two [four] of this act may, in addition ni'turat'ion°'oniy!" 
 to the spirits produced under section one [four] of this 
 act, use any of the products of farms, fruit orchards, or 
 any substance whatever, for the manufacture of alcohol 
 for denaturation only : Provided, That at such distilleries 
 the use of cisterns or tanks of such size and construction 
 as may be deemed expedient shall be permitted in lieu of 
 distillery bonded warehouses under such rules and regula- 
 tions as the Commissioner of Internal Eevenue, with the 
 approval of the Secretary of the Treasury, may prescribe. 
 
 That any person who under the provisions of this act viriSoST'"' '" 
 shall fail to register, or shall falsely register, any still or 
 distilling apparatus used by him, or who shall fraudu- 
 lently remove or conceal any distilled spirits, produced by 
 him, or who shall fail to comply with all the requirements 
 of this act, or any regulations issued pursuant thereto re- 
 specting the production and denaturization of distilled 
 spirits; and any person who shall recover or attempt to 
 recover by redistillization or by any other process or 
 means, any distilled spirits after the same has been de- 
 natured, shall, on conviction, for each offense, be fined not 
 more than $5,000 or be imprisoned for not more than five 
 years, or both, and shall in addition thereto forfeit to the 
 United States all real and personal property used in con- 
 nection therewith. 
 
 That subsection two of section thirty-two hundred and ^^nutacfaire'' Tt 
 forty-four of the Revised Statutes of ^;he United States stiiis. 
 shall not apply to still£)«g(iflz®o6tqa5(MSiisfii«rfi§f(aured for use 
 
304 DISTILLED SPIRITS. 
 
 in distilling, provided for in section one [four] of this 
 act, but the manufacturer or owner of such distilling 
 apparatus shall give notice to the collector of internal 
 revenue of the district in which the said apparatus is 
 made or to which it is removed, of each still, or worm, 
 manufactured, sold, used, or exchanged under such regu- 
 lations as the Commissioner of Internal Revenue, with the 
 approval of the Secretary of the Treasury, may prescribe. 
 terns°'1ft° small Section four of the act of March second, nineteen hun- 
 distuieries. drcd and seven, amendatory of the act of June seventh, 
 
 nineteen hundred and six, is hereby repealed, and the 
 Commissioner of Internal Revenue, with the approval of 
 the Secretary of the Treasury, shall exempt distillers 
 operating under this act from the provisions of sections 
 thirty-two hundred and eighty-three and thirty-three 
 hundred and nine of the Revised Statutes of the United 
 States, and from such other provisions of existing laws 
 relating to distillers, including the giving of bonds, as may 
 be deemed expedient by said officials : Provided, however. 
 That the Commissioner of Internal Revenue shall assess 
 and collect the tax on any spirits unlawfully produced or 
 produced and not accounted for by any such distiller. 
 
 Regulations No. 30, revised, dated October 12, 1917, rela- 
 tive to manufacture, sale, and use of denatured alcohol 
 under the act of June 7, 1906, amendatory act of March 2, 
 1907, and act of October 3, 1918. 
 
 Containers. (T. T>. 2824.) 
 
 Removal foi- Sec. 603. \Act of Felruory H, 1919 {Jfi Stat., 1057).] 
 denaturation free 'pjjg^j. under such regulations as the Commissioner, with 
 the approval of the Secretary, may prescribe, ethyl alco- 
 hol of not less than 180 degrees proof, produced at any 
 central distilling and denaturing plant established under 
 the provisions of subsection 2, paragraph N, of section 
 IV of the Act entitled "An Act to reduce tariff duties 
 and to provide revenue for the Government, and for 
 other purposes," approved October 3, 1913, may be re- 
 moved from such plant to any central denaturing bonded 
 warehouse for denaturation, or may, before or after de- 
 naturation, be removed from such plant or from such 
 denaturing bonded warehouse, free of tax, for use of the 
 United States or for shipment to any nation while en- 
 gaged against the German Government in the present 
 Avar, and the removal herein authorized may be made in 
 such tank vessels, tank cars, drums, casks, or other con- 
 Aiiowance for tainers as may be approved by the Commissioner. It 
 leakage, etc. shall be lawful, undcr regulations prescribed by the 
 Commissioner, with the approval of the Secretary, for 
 an allowance to be made for leakage or loss by unavoid- 
 able accident and without fault or negligence of the dis- 
 tiller, owner, carrier, or his agents or employees, which 
 may occur during the transportation of such spirits or 
 while the same are lawfully stored on either of the 
 premises herein described. 
 
Chapter Five. 
 
 FEKMENTED LIQUOES. 
 
 Sec. 
 
 3335. Brewer's notice. 
 3336 (amended). Bond. 
 3.337. Books and monthly statement. 
 Act of May 13, 1876. Section 
 
 3337 construed. Assessment. 
 3338. Monthly verification of entries 
 
 in books. 
 
 3339 (amended). Tax. Fractional 
 
 parts of a barrel, how esti- 
 mated. 
 
 608. Act of February 24, 1919. Change 
 
 of rate of tax. 
 21. Act of March 1, 1879. Gallon 
 defined. 
 
 3340 (amended). Evading tax, mak- 
 
 ing or procuring false entries, 
 etc. ; penalty. 
 
 3341 (amended). Stamps. Permits. 
 
 3342 (amended). Stamps, how pro- 
 
 cured, affixed, and canceled. 
 Penalty for fraud and neglect. 
 
 3343. Selling, removing, or buying fer- 
 
 mented liquor in packages 
 without stamp or with twice- 
 used stamp ; penalty. 
 
 3344. Drawing fermented liquor from 
 
 package without stamp or 
 without defacing stamp ; pen- 
 alty. 
 
 3345. Removal for storage without 
 
 stamps ; penalties! 
 
 609. Act of February 24, 1919. Con- 
 
 veyance to industrial distillery 
 without payment of tax. 
 3346 (amended). Making, selling, or 
 using false or counterfeit 
 stamps or permits, reusing 
 stamps, having removed 
 stamps in possession, selling 
 same; penalty. 
 
 Sec. 
 3347. 
 
 3348. 
 
 3349. 
 
 3350. 
 
 3351. 
 3352. 
 
 3353. 
 3354 
 
 607. 
 
 1.5. 
 
 Sour malt liquors, how remov- 
 able without stamps. 
 
 Brewers selling at retail at 
 brewery. 
 
 Packages to be marked ; penalty. 
 
 One brewer purchasing from 
 another. 
 
 Permit to carry on business at 
 another place on account of 
 accident. 
 
 Unfermented worts sold to other 
 brewers. 
 
 Fermented liquor removed from 
 brewery without payment of 
 tax forfeited. Absence of 
 .stamps to be notice and evi- 
 dence. 
 
 Removal or defacement of 
 stamps ; penalty. 
 
 (amended). Withdrawing fer- 
 mented liquor from unstamped 
 packages for bottling, or 
 bottling on brewery premises ; 
 penalty. Fermented liquor 
 permitted to be removed from 
 brewery through pipe or con- 
 duit for bottling only. 
 
 Act of Feljruary 24, 1919. Ap- 
 paratus at breweries. 
 
 Act of June 18, 1890. Removal 
 of fermented liquors for ex- 
 port without payment of tax. 
 Act of August 10, 1917. Use of 
 food products in manufacture 
 of malt liquors. 
 Act of November 21, 1918. Same. 
 Act of March 3, 1917. Advertise- 
 ments in certain States. Ship- 
 ments into States prohibiting 
 sale. 
 
 Sec. 3335. Every brewer shall, before commencing or of^bulfmss?"*'"' 
 continuing business, file with the collector, or proper 
 deputy collector, of the district in which he designs to 
 carry it on a notice in writing, stating the name of the 
 person, company, corporation, or firm, the names of the 
 members of any such company or firm, the places of resi- 
 dence of such persons, a description of the premises on 
 which the brewery is situated, and of his or their title 
 thereto, and the name of the owner thereof. 
 
 A person manufacturing for sale a fevmented liquor, 
 made from a substitute for malt, must qualify as a brewer. 
 (T. D. 646.) 
 
 Definition of brewer. Special tax of brewer. (Sec. 3244, 
 p. 162.) 
 
 i40i84''-20 2(^jgjtjzed by Microsoft® 305 
 
306 FEEMEHTBD LIQUORS. 
 
 B™<^- Sec. 3336. [Amended hy the act of April £9, 1886 (U 
 
 Stat., 15) .] Every brewer, on filing notice as aforesaid of 
 his intention to commence or continue business, * * * 
 shall execute a bond to the United States, to be approved 
 by the collector of the district, in a sum equal to three 
 times the amount of the tax v^hich, in the opinion of the 
 collector, said brewer will be liable to pay during any one 
 month, and conditioned that he shall pay, or cause to be 
 paid, as herein provided, the tax required by law on all 
 beer, lager-beer, ale, porter, and other fermented liquors 
 made by or for him, before the same is sold or removed 
 for consumption or sale, except as hereinafter provided; 
 and that he shall keep, or cause to be kept, a book, in the 
 manner and for the purposes hereinafter specified, which 
 shaU be open to inspection by the proper officers, as by 
 law required ; and that he shall in all respects faithfully 
 comply, without fraud or evasion, with all requirements 
 of law relating to the manufacture and sale of any malt 
 liquors aforesaid; and he shall execute a new bond once 
 in four years and whenever required so to do by said col- 
 lector in the amount above named and conditioned as 
 above provided, which bond shall be in lieu of any 
 former bond or laonds of such brewer in respect to all lia- 
 bilities accruing after its approval by said collector. 
 
 In case of incorporated companies the bond must be exe- 
 cuted in their corporate capacity and under their corporate 
 seals and signatures. 
 
 In case of a brewing company not incorporated the name 
 of the firm as well as of each member thereof must be re- 
 cited in the bond, which should be signed by each member 
 of the firm. 
 
 No provision is made for cancellation of bond where 
 brewers have gone out of business before the expiration of 
 the four years. (T. D. 648.) 
 
 A second bond given voluntarily during the four-year 
 period is merely cumulative and does not release the first 
 bond. (T. D. 834.) 
 
 Executors, administrators, assignees, and receivers con- 
 tinuing the business must execute a new bond. 
 
 Brewer's books. Sec. 3337. Every person who owns or occupies any 
 brewery, or premises used or intended to be used for the 
 purpose of brewing or making such fermented liquors, or 
 who has such premises under his control or superintend- 
 ence, as agent for the owner or occupant, or has in his 
 possession or custody any brewing materials, utensils, or 
 apparatus, used or intended to be used on said premises 
 in the manufacture of beer, lager-beer, ale, porter, or 
 other similar fermented liquors, either as owner, agent, or 
 superintendent, shall, from day to day, enter, or cause to 
 be entered, in a book to be kept by him for that purpose, 
 the kind of such malt liquors, the estimated quantity pro- 
 duced in barrels, and the actual quantity sold or removed 
 for consumption or sale in barrels or fractional parts of 
 barrels. He shall also, from day to day, enter, or cause 
 to be entered, Jn^^ ^semrate book to be kept by him for 
 
FERMENTED LIQUORS. 307 
 
 that purpose, an account of all materials by him pur- 
 chased for the purpose of producing such fermented 
 liquors, including grain and malt. 
 
 And he shall render to the collector, or the proper Montuy state- 
 deputy collector, on or before the tenth day of each "*"''• 
 month, a true statement, in writing, in duplicate, taken 
 from his books, of the estimated quantity in bai'rels of 
 such malt liquors brewed, and the actual quantity sold or 
 removed for consumption or sale during the preceding 
 month ; and shall verify, or cause to be verified, the said 
 statement, and the facts therein set forth, by oath, to be 
 taken before the collector of the district, or proper deputy 
 collector, according to the form required by law. 
 
 Said books shall be open at all times for the inspection 
 of any collector, deputy collector, inspector, or revenue 
 agent, who may take memorandums and transcripts 
 therefrom. 
 
 Forms revised. (T. D. 2471.) 
 
 United States v. Obermeyer (5 Ben., 541; 15 Int. Rev. 
 Rec., 83; 27 Fed. Oas., 211). United States v. Miller (16 
 Int. Rev. Rec, 25; 25 Fed. Gas., 1257). 
 
 Brewers' returns. — Returns made by brewers of the 
 amount of beer manufactured and sold by them are made 
 under compulsion of law for but one purpose, namely, the 
 collection of revenue for the United States, and copies 
 thereof are not permitted to be furnished to any persons for 
 other purposes. (T. D. 19443.) Verification of returns. 
 (T. D. 1046.) 
 
 [Act of May IS, 1876 {19 Stat, 63).] That nothing s.,^^-„,S "^ 
 contained in section three thousand three hundred and 
 thirty -seven of the Revised Statutes of the United States 
 shall be so construed as to authorize an assessment upon 
 the quantity of materials used in producing or purchased Quantity o f 
 for the purpose of producing, fermented or malt liquors, Xt "iidence^ tor 
 nor shall the quantity of materials so used or purchased tiin'!°^\f°* *^^*' 
 be evidence, for the purpose of taxation, of the quantity "'/ of uquor 
 of liquor produced ; but the tax on all beer, lager-beer, ale, *" Tax^to be paid 
 porter, or other similar fermented liquor, brewed or man- §38S9'°K'^'f '" 
 ufactured, and sold or removed for consumption or sale, 
 shall be paid as provided in section three thousand three 
 hundred and thirty-nine of said statutes, and not 
 otherwise. 
 
 Provided, That this act shall not apply to cases of cases of fraud 
 fraud. '^''''^■ 
 
 And provided further. That nothing in this act shall ^^^ of "law ^ 
 have the effect to change the present rules of law respect- *<> evidence in 
 mg evidence m any prosecution or suit. 
 
 Bergdoll v. Pollock, 95 U. S., 337; 24 Int. Rev. Rec, 2. 
 
 Sec. 3338. The entries made in such books shall, on or 
 before the tenth day of each month, be verified by the 
 oath of the person by whom they are made. The said 
 oath shall be written in the book at the end of such 
 
 Digitized by Microsoft® 
 
 suits, etc. 
 
308 FERMENTED LIQUOES. 
 
 entries, and be certified by the officer administering the 
 same, and shall be in form as follows : 
 
 Monthly «!;!*■ I do swear (or aflflrm) that the foregoing entries were made 
 
 in books. '" "* ^y roe ; and that they state truly, according to the best of my 
 
 knowledge and belief, the estimated quantity of the whole amount 
 
 of such malt liquors brewed, and the actual quantity sold, and 
 
 the actual quantity removed, from the brewery owned by , 
 
 in the county of ; and, further, that I have no knowledge 
 
 of any matter or thing required by law to be stated in said en- 
 tries which has been omitted therefrom. 
 
 And the owner, agent, or superintendent aforesaid 
 shall also, in case the orginal entries made in his book 
 where not made by himself, subjoin thereto the follow- 
 ing oath, to be taken in manner as aforesaid: 
 
 I do swear (or affirm) that, to the best of my knowledge and 
 belief the foregoing entries fully set forth all the matters therein 
 required by law; and that the same are just and true, and that 
 I have taken all the means In my power to make them so. 
 
 Brewer required to enter all malt liquors in his booK. 
 " Malt liquor " and " fermented liquor " used synony- 
 mously. (United States v. Dooley, 21 Int. Rev. Rec, 115; 
 25 Fed. Cas. 890, No. 14984.) 
 
 A book of general accounts kept by a brewer in conduct- 
 ing his business can not be deemed a book of entries of 
 materials purchased, or such a book as the statute re- 
 quires. (United States v. Bellingstein, 16 Int. Rev. Rec, 
 92; Fed. Cas., No. 14566.) 
 
 melttd ifq"ucr's"" Sec. 3339. [Amended by the act of Apnl IB, 1902 {32 
 Stat., 96).'] There shall be paid on all beer, lager-beer, 
 ale, porter, and other similar fermented liquors, brewed 
 or manufactured and sold, or stored in warehouse, or 
 removed for consumption or sale, within the United 
 States, by whatever name such liquors may be called, a 
 tax 01 one dollar for every barrel containing not more 
 than thirty-one gallons ; and at a like rate for any other 
 quantity or for any fractional part of a barrel. In esti- 
 mating and computing such tax, the fractional parts of 
 a barrel shall be halves, thirds, quarters, sixths, and 
 eighths; and any fractional part of a barrel, contain- 
 ing less than one-eighth, shall be accounted one-eighth; 
 more than one-eighth, and not more than one-sixth, 
 shall be accounted one-sixth; more than one-sixth, and 
 not more than one-fourth, shall be accounted one-fourth ; 
 more than one-fourth, and not more than one-third, 
 shall be accounted one-third; more than one-third, and 
 not more than one-half, shall be accounted one-half; 
 more than one-half, and not more than one barrel, shall 
 be accounted one barrel ; and more than one barrel, and 
 not more than sixty-three gallons, shall be accounted 
 two barrels, or a hogshead. The said tax shall be paid 
 by the owner, agent, or superintendent of the brewery 
 or premises in which such fermented liquors are made, 
 and in the manner and at the time hereinafter specified : 
 
 Ma*?'2,^T9oi.°' Provided, That in lieu of or in addition to the present 
 requirements of law in that respect, all stamps used for 
 denoting WWf H,p5]4^«gMefiid liquors or other taxes 
 
FERMENTED LIQUORS. 309 
 
 may, in the discretion of the Commissioner of Internal 
 Kevenue, be canceled by perforations to be made in such 
 manner and form as the Commissioner may by regula- 
 tions prescribe. 
 
 Sec. 608. [Act of February U, 1919 {W Stat, 1067).] change of rat. 
 That there shall be levied and collected on all beer, lager of tax. 
 beer, ale, porter, and other similar fermented liquor, 
 containing one-half of one per centum, or more, of alco- 
 hol, brewed or manufactured and hereafter sold, or re- 
 moved for consumption or sale, within the United States, 
 by whatever name such liquors may be called, in lieu 
 of the internal-revenue taxes now imposed thereon by 
 law, a tax of $6.00 for every barrel containing not more 
 than thirty-one gallons, and at a like rate for any other 
 quantity or for the fractional parts of a barrel author- 
 ized and defined by law, to be collected under the pro- 
 visions of existing law. 
 
 Acts imposing tax on fermented liquors and rates of tax. 
 
 Per 
 barrel. 
 Prom September, 1S62, to ilarch 3, 1863 (act July 
 
 1, 1862) $1.00 
 
 From March 3, 1863, to March 31, 1864 (act March 
 
 3, 1863) .60 
 
 From April 1, 1864, to June 13, 1898 ]. 00 
 
 From .Tune 14, 1898, to June 30, 1901 2. 00 
 
 From July 1, 1901, to June 30, 1902 1. 60 
 
 From .July 1, 1902, to October 22, 1914 1. 00 
 
 From October 23, 1914, to October 3, 1917 1. 50 
 
 From October 4, 1917, to February 24, 1919 3. 00 
 
 From February 25, 1919 6. 00 
 
 The act of March 3, 1863, provided that the tax on fer- 
 mented liquors should be 60 cents per barrel from the date 
 of the passage of that act to April 1, 1864. Hence the tax 
 of 60 cents per barrel having expired by limitation April 1, 
 1864, the tax of $1 per barrel under the act of July 1, 1862, 
 was again revived, virhich rate vcas Increased to $2 under 
 act of June 13, 1898. 
 
 The act of July 13, 1866 (14 Stat., 98), changed the mode 
 of assessing and collecting the tax on fermented liquor.s, 
 and made the tax on them after September 1, 1866, payable 
 by stamps. 
 
 Weiss beer taxable. (Special No. 153; 29 Int. Rev. Kec, 
 313.) 
 
 Imported malt liquors. (Sec. 11, act of Mar. 1, 1879, 
 p. 289.) 
 
 The manufacturer of a drink called " Maltlna," similar 
 to beer, lager beer, ale, and porter, made in part from one 
 of those liquors and in part from another substance, is 
 liable as a brewer. (Davis v. Daugherly, 105 Fed., 769.) 
 
 A liquor made from barley malt, fermented by means of 
 a wine yeast, is a fermented malt liquor, for the manufac- 
 ture of which for sale the special tax of a brewer is re- 
 quired to be paid, and on which tax is imposed, notwith- 
 standing the fact that by the use of a wine yeast instead 
 of a beer yeast it has the appearance and taste of wine. 
 (T. D. 19025.) 
 
 Malt tonics and extracts containing more than 2 per cent 
 of alcohol and less than 12 per cent of solids due to malt 
 classed as fermented malt liquors. (T. D. 2717.) 
 
 "Temperance beei/' Vio:oa!Sv:tl/lTer&Bdf^^ of. (T. Ds. 
 1307, 1360, 2354, 2359, 2370, 2410, 2921.) 
 
310 FERMENTED LIQUORS. 
 
 Gallon defined, gjjo. 21. [Act of Murch 1, 1879 (W Stat., 3^7) .] That 
 the word " gallon," wherever used in the internal-revenue 
 law, relating to beer, lager-beer, ale, porter, and other 
 similar fermented liquors, shall be held and taken to 
 mean a wine-gallon, the liquid measure containing two 
 hundred and thirty-one cubic inches. 
 
 The standard gallon of the United States contains 231 
 cubic inches or 8.3389 pounds avoirdupois of distilled water 
 at Its maximum density and with the barometer at 30 
 inches. (Webster's Dictionary.) 
 
 The old beer gallon of 282 cubic inches was recognized as 
 the standard for domestic malt liquors before the act of 
 March 1, 1879. That act was passed to make the gallon 
 conform to the standard in the customs service and to that 
 recognized by the mercantile community. (16 Op. Atty. 
 Gen., 361 ; Nichols v. Beard, 29 Int. Eev. Rec, 46. ) 
 
 ^^Evadui^ff tax, Sec, 3340. \Am,ended hy sec. 10, act of March i, 1879 
 "rin? false ^enl {W Stat., S^7) .^ Evcrj owucr, agent, or superintendent 
 tries, etc. ; pen- q£ ^^y brewcrj, vBSsels, Or utensils used in making fer- 
 mented liquors, who evades, or attempts to evade the 
 payment of the tax thereon, or fraudulently neglects or 
 refuses to make true and exact entry and report of the 
 same in the manner required by law, or to do, or cause to 
 be done, any of the things by law required to be done by 
 him * * *, or who intentionally makes false entry 
 in said book or in said statement, or knowingly allows or 
 procures the same to be done, shall forfeit, for every such 
 offense, all the liquors made by him or for him, and all the 
 vessels, utensils, and apparatus used in making the same, 
 and be liable to a penalty of not less than five hundred 
 nor more than one thousand dollars, to be recovered with 
 costs of suit, and shall be deemed guilty of a misde- 
 meanor, and be imprisoned for a term not exceeding one 
 year. 
 Penalty for And evcFf bi'ewer who neglects to keep books, or 
 books.'^e^tc.'''"^ refuses to furnish the account and duplicate thereof as 
 provided by law, or refuses to permit the proper officer 
 to examine the books in the manner provided, shall, for 
 every such refusal or neglect, forfeit and pay the sum of 
 three hundred dollars. 
 
 The words " as aforesaid " were stricken out In the sev- 
 enth line by section 10, act March 1, 1879 (20 Stat., 327). 
 
 Brewer liable for neglecting to keep books, although there 
 was no criminal intent. (United States v. Miller, 16 Int. 
 Bev. Rec, 25 ; United States v. Foster, 19 Id., 5 ; 25 Fed. 
 Ca.s., 1173; 2 Biss., 453; United States v. Bellingstein, Fed. 
 Cas. No. 14566; 16 Int. Bev. Rec., 92; Archbold's Grim. 
 Prac, p. 395). 
 
 Evading or attempting to evade the tax forfeits all the 
 liquors made, and all the vessels, utensils, and apparatus 
 used in making the same. (United States v. Brewery Uten- 
 sils, 13 Int. Rev. Rec., 95; Fed. Cas. No. 14641.) 
 
 GuppuTd"' a n^ Sec. 3341. [Amended hy sec. 9, act of July 2i, 1897 {30 
 
 ^^^' Stat., 151).'] The Commissioner of Internal Revenue 
 
 shall cause to be prepared, for the payment of such tax, 
 
 suitable st^gf^2^§t^i^(^/^)|^flf®ount of tax required to 
 
PEEMENTED LIQUOIB. 
 
 311 
 
 Permita. 
 
 be paid on the hogsheads, barrels, and halves, thirds, 
 quarters, sixths, and eighths of a barrel of such fer- 
 mented liquors (and shall also cause to be prepared suit- 
 able permits for the purpose hereinafter mentioned) , and 
 shall furnish the same to the collectors of internal reve- 
 nue, who shall each be required to keep on hand at all 
 times a sufficient supply of permits and a supply of 
 stamps equal in amount to two months' sales thereof, if 
 there be any brewery or brewery warehouse in his dis- 
 trict ; and such stamps shall be sold, and permits granted 
 and delivered by such collectors, only to the brewers of 
 their district, respectively. 
 
 Such collectors shall keep an account of the number of 
 permits delivered and of the number and value of the 
 stamps sold by them to each brewer. 
 
 As to stamps, see section 3446, amended, p. 589. 
 
 Relative to sale to sheriff of stamps for tax on beer levied 
 upon or attached by him. (Letter to OoUector Johnson, 
 Feb. 15, 1894 ; 40 Int. Rev. Rec, 53.) 
 
 Under the act of July 24, 1897, a brewer was required to 
 pay the full face value of the stamps purchased, without 
 deduction of the 7i per cent discount previously allowed. 
 The act of June 13, 1898, increasing the tax to $2 i)er barrel, 
 restored the right to the discount. The right to the dis- 
 count was repealed by the act of March 2, 1901 (31 Stat., 
 938). (Nunn v. Wm. Gerst Brewing Co., 99 Fed., 939; 
 Nassau Brewing Co. •;;. Moore, 97 Fed., 206.) 
 
 A collector's duty, as prescribed by sfction 3341, Revised 
 Statutes, is to keep on hand stamps equal in amount to two 
 months' sale thereof. The law does not permit transactions 
 for future delivery. The agency is limited to the stock on 
 hand. (The American Brewing Co. v. United States, 33 Gt. 
 Cls., 348; T.D. 19248.) 
 
 Restamping packages, where stamps are lost or destroyed 
 by imavoidable accident. (Sec. 3315, R. S., as amended, 
 p. 270.) 
 
 Form of order for stamps. (T. D. 2471.) 
 
 Sec. 3342. [Amended hy act of March 3, 1875 {18 stampB, how 
 Stat, m)-'\ That every brewer shall obtain, from the ^nT canJeMf ' 
 collector of the district in which his brewery or brewery- 
 warehouse is situated, and not otherwise unless such col- 
 lector shall fail to furnish the same upon application to 
 him, the proper stamps, and shall affix, upon the spigot- 
 hole in the head of every hogshead, barrel, keg, or other 
 receptacle in which any fermented liquor is contained, 
 when sold or removed from such brewery or warehouse, 
 (except in case of removal under permit, as hereinafter 
 provided,) a stamp denoting the amount of the tax re- 
 quired upon such fermented liquor, which stamp shall be 
 destroyed by driving through the same the faucet 
 through which the liquor is to be withdrawn, or an air- 
 faucet of equal size, at the time the vessel is tapped, m 
 case the vessel is tapped through the other spigot-hole, 
 (of which there shall be but two, one in the head and one 
 in the side,) and shall, also, at the time of affixing such 
 stamp, cancel the same by writing or imprinting thereon 
 the name of the TpQYS(mgiSlB^ l9^ msf&mf^^ by whom 
 
312 
 
 FEEMEHTED LIQUORS. 
 
 such liquor was made, or the initial letters thereof, and 
 the date when canceled. 
 fraud"oi'^re icct Every brcwer who refuses or neglects to affix and 
 or nee ec . ^.g^jj^gj £jjg gtamps required by law in the manner afore- 
 said, or who affixes a false or fraudulent stamp thereto^ 
 or knowingly permits the same to be done, shall pay a 
 penalty of one hundred dollars for each barrel or pack- 
 age on which such omission or fraud occurs, and be im- 
 prisoned not more than one year. 
 
 Beer stamps are not articles of merchandise. They are 
 merely evidence of payment of tax. (American Brewing 
 Co. V. United States, 33 Ct. Cls., 349; Nunn v. Wm. Gerst 
 Brewing Co., 99 Fed., 939; Nassau Brewing Co. v. Moore, 
 97 Fed., 206.) 
 
 Stamps must be affixed upon a spigot hole in the head 
 of the package. (United States v. McKechnie, 15 Int. Rev. 
 Rec, 8; Fed. Cas. No. 15682.) 
 
 As to spigot holes. (32 Int. Rev. Rec, 317; see T. D. 
 748, T. D. 751, and T. D. 762.) 
 
 The proviso in the first section of the act of March 2, 
 1901, reads as follows: 
 
 "Provided, That in lieu of or in addition to the pres- 
 ent requirements of law in that respect, all stamps used 
 for denoting the tax upon fermented liquors or other taxes 
 may, in the discretion of the Commissioner of Internal 
 Revenue, be canceled by perforations to be made in such 
 manner and form as the Commissioner may by regulations 
 prescribe." 
 
 In the exercise of the authority thus conferred it was 
 prescribed that on and after September 1, 1901, and until 
 otherwise ordered, all stamps used for denoting the tax 
 upon fermented liquors shall be canceled by perforations. 
 (Regulations No. 6, revised, p. 13.) 
 
 Where the law prescribes as punishment for an offense 
 both a money penalty and imprisonment, It is not true that 
 the penalty can only be enforced by indictment. The Gov- 
 ernment can maintain an action of debt for the money 
 penalty. ( United States v. Foster, 2 Biss.,- 453 ; 19 Int. 
 Rev. Rec, 5.) 
 
 It is sufficient as a general rule to charge an offense in 
 the language of the statute. (United States v. Schimer, 
 5 Biss., 195.) 
 
 ing^^^OT^' bu^Sg Sec. 3343. Whenever any brewer, cartman, agent for 
 
 in™ dages'jrtth- transportation, or other person, sells, removes, receives,, 
 
 out stamp, or or purchascs, or in any way aids in the sale, removal, 
 
 w/th twi^e-'used receipt, or purchase, of any fermented liquor contained 
 
 stamp; penalty, ju ^ny hogshcad, barrel, keg, or other vessel from any 
 
 brewery or brewery warehouse, upon which the stamp, 
 
 or permit, in case of removal, required by law, has not 
 
 been affixed, or on which a false or fraudulent stamp, or 
 
 permit, in case of removal, is affixed, with knowledge 
 
 that it is such, or on which a stamp, or permit, in case of 
 
 removal, once canceled, is used a second time, he shall 
 
 be fined one hundred dollars and imprisoned for not 
 
 more than one year. 
 
 nientTd""^iiquOT ^^^- ^^**- Whenever any retail dealer, or other person, 
 
 from package withdraws or aids in the withdrawal of any fermented 
 
 «r'*'"'with "fSse liquor from any hogshead, barrel, keg, or other vessel 
 
 'JIT' "defri^g containin§D^2^ttj^ )Wlh$0fl#stroying or defacing the 
 
 stamp ; penalty, stamp affixed thereon, or withdraws or aids in the with- 
 
PEBMENTED LIQUORS. 313 
 
 drawal of any fermented liquor from any hogshead, bar- 
 rel, keg, or other vessel, upon which the proper stamp 
 has not been affixed or on which a false or fraudulent 
 stamp is affixed, he shall be fined one hundred dollars and 
 imprisoned not more than one year. 
 
 See section 3455, page 596, as to selling, receiving, etc., 
 empty stamped packages. 
 
 Sec. 3345. Any brewer may remove or transport, or Removal for 
 
 ,, ■', , •'iin i-i'^ Storage without 
 
 cause to be removed or transported, from his brewery or stamps. 
 other place of manufacture to a depot, warehouse, or 
 other place used exclusively for storage or sale in bulk, and 
 occupied by him, in another part of the same collection- 
 district, or in another collection-district, but to no other 
 place, malt liquor of his own manufacture, known as 
 lager-beer, in quantities of not less than six barrels in one 
 vessel, and malt liquor of his own manufacture, known 
 as ale or porter, or any other malt liquor of his own 
 manufacture not heretofore mentioned, in quantities not 
 less than fifty barrels at a time, without affixing the 
 proper stamps on said vessels of lager-beer, ale, porter, 
 or other malt liquor, at the brewery or place of manu- 
 facture, under a permit, which shall be granted, upon ^^'■"it- 
 application, by the collector of the district in which said 
 malt liquor is manufactured, and under such regulations 
 as the Commissioner of Internal Revenue may prescribe ; 
 and thereafter the manufacturer of said malt liquor shall 
 stamp the same, when it leaves such depot or warehouse, 
 in the same manner and under the same penalties and 
 liabilities as when stamped at the brewery as herein 
 provided. 
 
 And the collector of the district in which such depot or 
 warehouse is situated shall furnish the manufacturer 
 with the stamps for stamping the same, as if the said 
 malt liquor had been manufactured in his district. And 
 said permit must be affixed to every such vessel or cask 
 so removed, and canceled or destroyed in such manner as 
 the Commissioner of Internal Revenue may prescribe, 
 and under the same penalties and liabilities as provided 
 herein as to stamps. 
 
 Sec. 609. [Act of FehrvMry H, 1919 {W Stat., 1057).] .;„dusMT"dLi*i" 
 That from and after the passage of this Act taxable fer- ^l^'^e^A M^tax'. 
 mented liquors may be conveyed without payment of tax 
 from the brewery premises where produced to a con- 
 tiguous industrial distillery of either class established 
 under the Act entitled "An Act to reduce tariff duties 
 and to provide revenue for the Government, and for 
 other purposes," approved October 3, 1913, to be used as 
 distilling material, and the residue from such distillation, 
 containing less than one-half of 1 per centum of alcohol 
 by volume, which is to be used in making beverages, may 
 be manipulated by cooling, flavoring, carbonating, set- 
 tling, and filtering on the distillery premises or else- 
 where. Digitized by Microsoft® 
 
314 FERMENTED LIQUOBS. 
 
 The removal of the taxable fermented liquor from the 
 brewery to the distillery and the operation of the dis- 
 tillery and removal of the residue therefwim shall be 
 under the supervision of such officer or officers as the 
 Cominissioner shall deem proper, and the Commissioner, 
 with the approval of the Secretary, is hereby author- 
 ized to make such regulations from time to time as may 
 be necessary to give force and effect to this section and 
 to safeguard the revenue. 
 infff ^''of ' usS ^^^- ^^^^- i^nhended hy sec. -5, mt of March 1, 1879 
 false St amp8, (20 St(d., 3^7).'] Every person who makes, sell% or uses 
 
 permits, or dies, ^i a-^^jj. **_ i"i "a_ 
 
 any false or counterfeit stamp or permit, or die for prmt- 
 ing or making stamps or permits, which is in imitation 
 of or purports to be a lawful stamp, permit, or die of 
 the kind before mentioned in this chapter, or wio pro- 
 cures the same to be done, and every person who shall 
 u s^™g^rtimpt remove, or cause to be removed, from any cask or pack- 
 ing'"*in "'po^r ^^® ^-^ fermented liquors, any stamp denoting the tax 
 s i n removed thercon, with iutcut to re-us6 such stamp, or who, with 
 stamps ; pen- j^^gjj^ ^^q def raud the revenue, knowingly uses, or permits 
 to be used, any stamp removed from another cask or 
 package, or receives, buys, sells, gives away, or has in his 
 possession, any stamp so removed, or makes any fraudu- 
 lent use of any stamp for fermented liquors, shall be fined 
 not less than one hundred dollars nor more than one 
 thousand dollars, and imprisoned not less than six 
 months nor more than three years. 
 
 All officers are instructed that canceled beer stamps, or 
 stamps that have been once used, found In the hands of a 
 brewer or other person, should be seized, marked for identi- 
 fication, and deposited with the collector for use in a prose- 
 cution to be instituted under section 3346, B. S., as 
 amended. (Cir. No. 407.) 
 
 uors°'"^r™ovabie Sec. 3347. IVhcii fermented liquor lias become sour 
 iges^'^w i't h^o*?t ^^ damaged, so as to be incapable of use as such, brew- 
 Btamps. ers may sell the same for manufacturing purposes, and 
 
 may remove the same to places where it may be used 
 for, such purposes, in casks, or other vessels, unlike those 
 ordinarily used for fermented liquors, containing respec- 
 tively not less than one barrel each, and having the 
 nature of their contents marked upon them, without 
 affixing thereon the permit, stamp or stamps required. 
 
 Section 3347, Revised Statutes, providing for the sale by a 
 brewer of sour beer in peculiar packages without a stamp does 
 not confer the privilege of removing a stamp for reuse in the 
 case of beer soured or spoiled after being stamped. A stamp 
 once applied to a package can never legally be removed and 
 applied to another. 
 
 No refund allowed of money paid for stamps on packages of 
 beer which have soured after removal from the brewery. <T. D. 
 799.) 
 
 ing^aT^tairl't ^f^" ^^*^- ^vcry brcwer who sells fermented liquor at 
 
 brewery to affix retail at the brewery or other place where the same is 
 
 alc^unt.*" ^^^ made, shall.affix, and. cancel the proper stamps upon the 
 
 hogshe^^'^»^,%PfO^®other vessels in which the 
 
FEEaiENTED LIQUOBS. 315 
 
 same is contained, and sixall keep an account of the quan- 
 tity so sold by iiim, and of the number and size of tlie 
 hogsheads, barrels, keg's, or other vessels in which the 
 same has been contain'ed, and shall make a report thereof, 
 verified by oath, monthlj' to the collector. 
 
 Sec. 334:9. Every brewer shall, by branding, mark or Name of ma™- 
 cause to be marked upon every hogshead, barrel, keg, or be°*"lSrk?d'' ^ 
 other vessel containing the fermented liquor made ^Jlu^^'' r^mml- 
 him, before it is sold or removed from the brewery or log maAs, md. 
 brewery warehouse, or other place of manuiacfcnre, the 
 name of the person, firm, or corporation by whom such 
 liquor was manufactured, and the place of manufacture; 
 and every person other than the owner thereof, or his 
 agent auiliorized so to do, who intentionally removes or 
 defaces such marks therefrom, shall be liable to a penalty 
 of fifty dollars for each cask or other Teseel from which 
 the mark is so removed or defaeed: 
 
 Provided, That when a brewer purchases fermented ^.j^g^r^J^^gP^JJ^j; 
 liquor finished and ready for sale from a^nother brewer, in ed M<,Bor irom 
 order to supply the customers of such purchaser, the pur- *"" ^ ^'^^' 
 chaser may, upon written notice to the collector of his 
 intention so to do, and under such regulations as the Com- 
 missioner of Internal Eevenu© may prescribe, furnish his 
 own vessels, branded with his name and the place where 
 his brewery is situated, to be filled with the fermented 
 liquor so purchased, and to be so removed; the proper 
 stamps to be affixed and canceled, as aforesaid, by the 
 manufacturer before removal. 
 
 See section S244, subdivision fiitli, page 170, for liability 
 to fecial tax in such cases. 
 
 SMpping fermented liquors under otber than the name as 
 known to the trade. ( Sea 3449, R. S. ) 
 
 Sec. 3350. Whenever, in the opinion of the collector of earf/'^o'S'^bJu 
 any district, it becomes requisite or proper, by reas3n of ^|^^ f^ amount 
 an accident to any brewery therein, by fire or flood, or of ot accident. 
 such brewery undergoing repairs, or of otlier circum- 
 stances, that the brewer carrying on the same shall be per- 
 mitted to conduct his business wholly or in part at some 
 other place within such district or an adjoining district 
 for a temporary period, it shall be lawful for such col- 
 lector, under such regulations and subject to such limita- 
 tion of time as the Commissioner of Internal Eevenue 
 may prescribe, to issue a permit to such brewer, author- 
 izing him to conduct his business wholly or in part, ac- 
 cording to the circumstances, at such other place, for a 
 period to be stated in such permit; and such brewer shall 
 not foe required to pay another special tax for the purpose. ^^^^ 
 
 Sec. 3851. When malt liquor or tun liquor, in the first ^ort" "Sd ° to 
 stages of fermentation, known as unfermented worts, of g*^f ta^''S''be 
 whatever kind., is sold by one brewer to another for the paid. 
 purpose of producing fermentation or enlivening old or 
 stale ate, porter, lager-beer, or other fermented liquors, 
 it shall not be liable Bfg^iMb^l\Jl^8rmM^ *^'* ^^^^^^ 
 
316 FERMENTED LIQUOBS. 
 
 thereof, but the tax on the same shall be paid by the pur- 
 chaser thereof, when the same, having been mixed with 
 the old or stale beer, is sold by him as provided by law, 
 and such sale or transfer shall be subject to such restric- 
 tions and regulations as the Commissioner of Internal 
 Revenue may prescribe. 
 lermentrfTiquOT ^EC. 3352. The Ownership or possession by any person 
 after removal of auv fermented liquor after its sale or removal from the 
 when tax not Drcwery or warehouse, or other place where it was made, 
 foriiitum"^^ °' upon which the tax required has not been paid, shall 
 render such liquor liable to seizure wherever found, and 
 to forfeiture, removal under said permits excepted. 
 Absence o^f Aiid the abseucc of the proper stamps from any hogs- 
 MtTcr and evi- head, barrel, keg, or other vessel containing fermented 
 ^^""^^' liquor, after its sale or removal from the brewery where it 
 
 was made, or warehouse as aforesaid, shall be notice to all 
 persons that the tax has not been paid thereon, and shall 
 be prima-f acie evidence of the non-payment thereof. 
 Removal or de- gj;c, 3353. Every person, other than the purchaser or 
 
 lacementof „ jiii- i- i- 
 
 ptamps by others oAvner 01 any fermented liquor, or person acting on his 
 CTsf pSaity?™"' behalf, or as his agent, who intentionally removes or 
 defaces the stamp or permit affixed upon the hogshead, 
 barrel, keg, or other vessel, in which the same is contained, 
 shall be liable to a fine of fifty dollars for each such vessel 
 from which the stamp or permit is so removed or defaced, 
 and to render compensation to such purchaser or owner 
 for all damages sustained by him therefrom. 
 )iq™V'?,om"un! Sec. 3354. [Amended hy act of June 18, 1890 {26 Stat, 
 stamped^ pact 161) and sec. 627 of act of February ^^, 1919 {Ifi Stat, 
 tM^g, or boi- 1057) .'\ Evcry person who withdraws any fermented 
 e'lT^p^emL's.^ ^' liquor f rom any hogshead, barrel, keg, or other vessel 
 upon which the proper stamp has not been affixed for the 
 purpose of bottling the same, or who carries on or at- 
 tempts to carry on the business of bottling fermented 
 liquor in any brewery or other place in which fermented 
 liquor is made, or upon any premises having communica- 
 tion with such brewery, or any warehouse, shall be liable 
 to a fine of $500, and the property used in such bottling or 
 ierScnted^'iiquor buslncss shall bc liable to forfeiture : Provided, however, 
 tawishment^ b'" '^^^^ ^^^^^ sectiou shall not be construed to prevent the 
 pipe' h"e™r eon'^ withdrawal and transfer of unfermented, partially fer- 
 '"'"'■ mented, or fermented liquors from any of the vats in any 
 
 brewery by way of a pipe line or other conduit to another 
 building or place for the sole purpose of bottling the same, 
 such pipe line or conduit to be constructed and operated 
 in such manner and with such cisterns, vats, tanks, valves, 
 cocks, faucets, and gauges, or other utensils or apparatus, 
 either on the premises of the brewery or the bottling house, 
 and with such changes of or additions thereto, and such 
 locks, seals, or other fastenings, and under such rules and 
 regulations as shall be from time to time prescribed by the 
 Commissioner of Internal Revenue, subject to the ap- 
 proval of 64S/^JSf^iy/e*5ai^if^easury, and all locks and 
 
FERMENTED LIQUOES. 317 
 
 seals prescribed shall be provided by the Commissioner of 
 Internal Revenue at the expense of the United States: 
 Provided further, That the tax imposed in section 3339 
 of the Revised Statutes shall be paid on all fermented anP^'i'^f^^"*'"" 
 liquor removed from a brewery to a bottling house by o? stamps.™""^"' 
 means of a pipe or conduit, at the time of such removal, 
 by the cancellation and defacement, by the collector of 
 the district or his deputy, in the presence of the brewer, 
 of the number of stamps denoting the tax on the fer- 
 mented liquor thus removed. The stamps thus canceled 
 and defaced shall be disposed of and accounted for in the 
 manner directed by the Commissioner of Internal Reve- 
 nue, with the approval of the Secretary of the Treasury. 
 And any violation of the rules and regulations hereafter 
 prescribed by the Commissioner of Internal Revenue, with 
 the approval of the Secretary of the Treasury, in pursu- 
 ance of these provisions, shall be subject to the penalties 
 above provided by this section. Every owner, agent, or 
 superintendent of any brewery or bottling house who re- 
 moves, or connives at the removal of, any fermented liquor 
 through a pipe line or conduit, without payment of the 
 tax thereon, or who attempts in any manner to defraud 
 the revenue as above, shall forfeit all the liquors made by 
 and for him, and all the vessels, iitensils, and apparatus 
 used in making the same. 
 
 Beer intended for bottling, except when removed bj' pipe 
 line, must be drawn into stamped packages and removed 
 from tbe brewery, and tlie bottling premises must be so 
 separated from the brewery that the beer must be carried 
 upon a street or road which is a public highway, actually 
 and commonly used as a thoroughfare by the public, in its 
 passage from the brewery to the bottling establishment. 
 (Int. Rev. Reg. No. 6, revised, under "Bottling.") 
 
 Concerning the transfer of fermented liquors from a 
 brewery by way of pipe line or conduit for the sole purpose 
 of bottling the same. (Regulations No. 6, revised.) 
 
 Sec. 607. {Act of Fehniary ^4, 1919 {Jfi Stat., 1057).] Apparatus at 
 That the Commissioner, with the approval of the Sec- 1"'^«'«"«=- 
 retary, is hereby authorized to require at distilleries, 
 breweries, rectifying houses, and wherever else in his 
 judgment such action may be deemed advisable, the in- 
 stallation of meters, tanks, pipes, or any other apparatus 
 for the purpose of protecting the revenue, and such 
 meters, tanks, and pipes and all necessary labor inci- 
 dent thereto shall be at the expense of the person on 
 whose premises the installation ie required. Any such 
 person refusing or neglecting to install such apparatus 
 when so required by the Commissioner shall not be per- 
 mitted to conduct business on such premises. 
 
 EXPORTATION OF FEKMENTED LIQUOES. 
 
 {Act of June 18, 1890 {26 Stat., 162).] That from Exportation of 
 and after the first day of January, eighteen hundred u™.°" ° '"" 
 and ninety-one, fermented liquor may be removed from 
 the place of manufactul^'e^gt^i^aPf^^SPfl^port to a 
 
318 I-EEMBNTED LIQXJOBS. 
 
 foreign country, without payment of tax, in such pack- 
 ages and under such regulations, and upon the giving of 
 such notices, entries, bonds, and other security, as the 
 Commissioner of Internal Eevenue, with the approval of 
 the Secretary of the Treasury, may from time to time 
 No drawback, prescribe; and no drawback of tax shall be allowed on 
 fermented liquor exported on and after the first day of 
 January, eighteen hundred and ninety-one, unless en- 
 tered for exportation prior to such date. 
 
 This operates as a repeal, on and after January 1, 1891, 
 of section 3441, E. S., as amended. {Regulations No. 29; 
 T. D. 540.) 
 
 USE OF FOOD PEODTJCTS DTIRIIfG WAR, 
 
 use"of"iood'1.^° ^^^- ^^- [-^^^ ^f August 10, 1917 {W Stat., S76).] 
 tCTia?s. "^ '"'■ * * * Whenever the President shall find that limita- 
 tion, regulation, or prohibition of the use of foods, fruits, 
 food materials, or feeds in the production of malt or 
 vinous liquors for beverage purposes, or that reduction 
 of the alcoholic content of any such malt or vinous 
 liquor is essential in order to assure an adequate and con- 
 tinuous supply of food, or that the national security and 
 defense will be subserved thereby, he is authorized, from 
 time to time, to prescribe and give public notice of the 
 extent of the limitation, regulation, prohibition, or re- 
 duction so necessitated. Whenever such notice shall 
 have been given and shall remain unrevoked no person 
 shall, after a reasonable time prescribed in such notice, 
 use any foods, fruits, food materials, or feeds in the pro- 
 duction of malt or vinous liquors, or import any such 
 liquors except under license issued by the President and 
 in compliance with rules and regulations determined by 
 him governing the production and importation of such 
 Penalty. liquors and the alcoholic content thereof. Any person 
 who willfully violates the provisions of this section, or 
 who shall use any foods, fruits, food materials, or feeds 
 in the production of malt or vinous liquors, or who shall 
 import any such liquors, without first obtaining a li- 
 cense so to do when a license is required imder this sec- 
 tion, or who shall violate any rule or regulation made un- 
 der this section, shall be punished by a fine not exceed- 
 ing $5,000 or by imprisonment for not more than two 
 years, or both: Provided further, That nothing in this 
 section shall be construed to authorize the licensing of 
 the manufacture of vinous or malt liquors in any State, 
 Territory, or the District of Columbia, or any civil sub- 
 division thereof, where the manufacture of such vinous 
 or malt liquor is prohibited. 
 
 A PbociA-MAtion. 
 
 Whereas, under and by virtue of an act of Congress en- 
 titled "An act to provide further for the national security 
 and jlefense by enoouraginaJlie production, conserving the 
 
 supmgikmamtmGs^^^aistmv.tioii of food products 
 
FERMENTED LIQITOES. 319 
 
 and fuel," approved by the President ou August 10, 1917, 
 it is provided in section 15, among other tilings, as follows: 
 
 " Whenever the President slvall find tliat limitation, 
 iregnlation, or prohibition of the use of foods, fruits, food 
 materials, or feeds in the production of malt or vinous 
 liquors for beverage purposes, or that reduction of the alco- 
 holic content of any such malt or vinous liquor, is essen- 
 tial, in order to assure an adequate and continuous supply 
 of food, or that the national security and defense will be 
 subserved thereby, he is authorized, from time to time, 
 to prescribe and give public notice of the extent of the 
 limitation, regulation, proliibition, or reduction so neces- 
 sitated. Whenever such notice shall have been given and 
 shall remain unrevoked, no person shall, after a reasonable 
 time prescribed In such notice, use any foods, fruits, food 
 materials, or feeds in the production of malt or vinous 
 liquors, or import any such liquors except under license 
 issued by the President and in compliance with rules and 
 regulations determined by him governing the production 
 and importation of such liquors and the alcoholic content 
 thereof." 
 
 JVow, therefore, I, Woodrow Wilson, President of the 
 United States of America, by virtue of the powers con- 
 ferred on me by said act of Congress, do hereby find and 
 determine that it is essential, in order to assure an ade- 
 quate and continuous supply of food, in order to subserve 
 the national security and defense, and because of the in- 
 creasing requirements of war industries for the fuel pro- 
 ductive capacity of the country, the strain upon transpor- 
 tation to serve such industries, and the shortage of labor 
 caused by the necessity of increasing the armed forces of 
 the United States, that the use of sugar, glucose, corn, rice 
 or any other foods, fruits, food materials and feeds in the 
 production of malt liquors including near beer, for bever- 
 age purposes be prohibited. And by this proclamation I 
 prescribe and give public notice that on and after October 
 1st, 1918, no person shall use any sugar, glucose, corn, 
 rice or any other foods, fruits, food materials or feeds, 
 except hops and malt now already made, in the production 
 of malt liquors, including near beer, for beverage pur- 
 poses, whetlier or not such malt liquors contain alcohol, 
 and on and after December 1st, 1918, no person shall use 
 any sugELr, glucose, corn, rice or any otlier foods, fruits, 
 food materials or feeds, including malt, in the production 
 of malt liquors, including near beer, for beverage purposes, 
 whether or not such malt liquors contain alcohol. 
 
 In witness whereof, I have hereunto set my hand and 
 caused the seal of the United States to be affixed. 
 
 Done in the District of Columbia, this 16th day of 
 September in the year of our £.ord One Thousand Nine 
 Hundred and Eighteen, and of the Independence of the 
 United States of America the One Hundred and Forty- 
 Third. 
 
 Woodrow Wilson. 
 
 By the President : 
 
 Robert Lansing, 
 
 Secretary of State. 
 
 EULES AND EEGULATIOiS^S GO'VEBNING THE PRODUCTION OP 
 MaXT lilQUOES AND THE ALCOHOLIC CONTENT THBRBOT. 
 
 Promulgated by the President under the authority of section 
 15 of the act of Congress approved August 10, 1917, en- 
 titled "An act to provide further for the national security 
 and defense by encouraging the production, conserving 
 the supply, and contfpj0jii^ebf^i/ff^(f^mft<3 food prod- 
 
320 FERMENTED LIQUOES. 
 
 ucts and fuel," and in accordance with proclamations 
 concerning malt liquor, issued December 8, 1917, and 
 September 16, 1918. 
 
 Kule 1. During tlie period from October 1, 1918, to De- 
 cember 1, 1918, only malt and hops shall be used in the pro- 
 duction of any malt liquor, provided that any dextrinous 
 or other sirups which have been specially prepared for the 
 manufacture of near beer and which are in the licensee's 
 possession or shipped to him prior to October 1, 1918, may 
 be used in the manufacture of such near beer. 
 
 Rule 2. The limitations on quantity of malt and hops used 
 in the manufacture of beer or near beer, contained in the 
 proclamation of December 8, 1917, shall not apply during 
 the period from October 1, 1918, to December 1, 1918, but 
 nothing in this rule shall be construed to modify in any 
 w;iy the limitation on alcoholic content of malt liquor pre- 
 scribed by said proclamation of December 8, 1917. 
 
 Rule 3. No person shall import any malt liquor for bever- 
 age purposes on and after December 1, 1918. 
 
 Rule 4. The prohibitions contained in the proclamation of 
 September 16, 1918, shall not apply to material actually in 
 process of manufacture prior to the dates named in said 
 proclamation, but the fact that material Is on hand in the 
 brewery or factory shall not authorize any exception to be 
 made other than that referred to in rule 1. 
 
 The foregoing regulations are approved on this 30th day 
 of September, 1918, superseding all prior regulations incon- 
 sistent herewith. 
 
 WOODROW WiLSOW. 
 
 The fact that manufacture of a malt beverage is pro- 
 hiljited will not relieve the producer from liability to tax. 
 (T. D. 2841.) 
 
 Instructions as to procedure in securing permits and 
 giving bonds for sale and use of distilled spirits and wines 
 for other than beverage purposes, including wines for sac- 
 ramental purposes. (T. Ds. 2940, 2946.) 
 
 pr?duct's'"'in Sec. 1. [Act of November 21, 1918 {40 Stat., 1046)— 
 manufacture el Extvact.'] After May first, nineteen hundred and nine- 
 mait hquor. teen, Until the conclusion of the present war and there- 
 after until the termination of demobilization, the date 
 of which shall be determined and proclaimed by the 
 President of the United States, no grains, cereals, fruit 
 or other food product shall be used in the manufacture or 
 production of beer * or other intoxicating malt * 
 liquor for beverage purposes. After June thirtieth, 
 nineteen hundred and nineteen, until the conclusion of 
 the present war and thereafter until the termination of 
 demobilization, the date of which shall be determined and 
 proclaimed by the President of the United States, no 
 beer * or other intoxicating malt * liquor shall be 
 sold for beverage purposes except for export. After the 
 approval of this Act no * malt * or other intoxi- 
 cating liquors shall be imported into the United States 
 during the continuance of the present war and period of 
 demobilization: Provided, That this provision against 
 importation shall not apply to shipments en route to the 
 United States at the time of the passage of this Act. 
 Penalty. Any person who violates any of the foregoing pro- 
 
 visions shall be punishad by imprisonment not exceeding 
 one year, m§4mMwmg $1,000, or by both such 
 
FERMKNTED LIQUORS. 321 
 
 imprisonment and fine : Provided, That the President of 
 the United States be, and hereby is, authorized and em- 
 powei'ed, at any time after the passage of this Act, to 
 establish zones of such size as he may deem advisable 
 about coal mines, munition factories, shipbuilding plants, 
 and such other plants for war material as may seem to 
 him to require such action Avhenever in his opinion the 
 creation of such zones is necessary to, or advisable in, the 
 proper prosecution of the war, and that he is hereby 
 authorized and empowered to prohibit the sale, manu- 
 facture, or distribution of intoxicating liquors in such 
 zones, and that any violation of the President's regula- 
 tions in this regard shall be punished by imprisonment 
 for not more than one year, or by fine of not more than 
 $1,000, or by both such fine and imprisonment: Proinded 
 further, That nothing in this Act shall be construed to 
 interfere with the jpower conferred upon the President 
 by section fifteen of the food-control Act, approved 
 August tenth, nineteen hundred and seventeen (Public 
 Numbered Forty, Sixty-fifth Congress). 
 
 The fact that manufacture of a malt beverage is pro- 
 hibited will not relieve the producer from liability to tax. 
 (T. D. 2841.) 
 
 The act of November 21, 1918, is not in violation of the 
 fifth amendment to the Constitution, is not void by reason 
 of passing of the war emergency, was not repealed by the 
 adoption of the eighteenth amendment to the Constitution, 
 and did not expire by limitation in that the war is at an 
 end, the President not having determined and proclaimed 
 the date of termination of demobilization. (Hamilton v. 
 Kentucky Distilleries & Warehouse Co.~ Dryfoos v. Ed- 
 wards. Decided by United States Supreme Court December 
 15, 1919, but not yet officially reported.) 
 
 Instructions as to procedure in securing permits and giv- 
 ing bonds for sale and use of distilled spirits and wines 
 for other than beverage purposes, including wines for sac- 
 ramental purposes. (T. Ds. 2940, 2946.) 
 
 Indictment charging violation of this section by manufac- 
 ture of malt liquor having alcoholic content of one-half of 
 one per cent or more, but not alleging same to be intoxicat- 
 ing, is subject to demurrer. (United States v. Standard 
 Brewery, 260 Fed., 486.) 
 
 Congress has constitutional power to prohibit manufac- 
 ture and sale of intoxicating liquors during war. (United 
 States V. Baumgartner, 259 Fed., 722.) 
 
 This act is constitutional. (United States v. Ranier 
 Brewing Co., 259 Fed., 3.59.) 
 
 This section, whether construed to prohibit manufacture 
 of any beer or wine, or only such as is intoxicating, is con- 
 stitutional. ( Jacob Hoffman Brewing Co. v. McEUigott, 259 
 Fed., 321.) 
 
 This act does not prohibit manufacture or sale of beer 
 which Is not intoxicating. (United States v. Petts, 260 
 Fed., 668.) 
 
 Ruling on demurrer to information charging violation of 
 this act by manufacturer of beer for beverage purposes, 
 where purpose was to obtain construction of statute and 
 ruling as to whether particular beverage was within this 
 prohibition. (United States v. Berguer & Eugel Brewing 
 Co., 260 Fed., 764.) 
 
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322 FERMENTED. LIQUORS. 
 
 Vehicle or animal committed by owner to possession of 
 third person, who uses it in removal of goods or commodities 
 to defraud United States of tax imposed thereon, is subject 
 to forfeiture though owner had no knowledge of illegal use. 
 (Logan V. United States, 260 Fed., 746.) 
 
 Act held constitutional, as within war powers of Congress 
 in dealing with conditions growing out of termination of 
 hostilities and demobilization of army. (Scatina v. Caffey, 
 260 Fed., 756.) 
 
 Information charging violation of this act need not aver 
 that beer alleged to have- been manufactured or sold was 
 intoxicating. (United States v. Pittsburgh Brewing Co., 
 260 Fed., 762.) 
 
 This act does not violate tenth amendment to Federal 
 Constitution. (United States v. Minery, 259 Fed., 707.) 
 
 Bighteentli amendment to the Federal Constitution does 
 not invalidate act of November 21, 1918, upon ground that 
 prohibition legislation is precluded until 1920. (Id.) 
 
 This act is applicable to sale on July 8, 1919, since no 
 treaty had then been signed with Austria and the army had 
 not been entirely demobilized. (Id.) 
 
 This act prevents only the manufacture and sale of beer, 
 wine, etc., Miich are in fact intoxicating. (Jacob Hofli- 
 man Brewing Co. t'. McElligott, 259 Fed., 525; United 
 States V. Baumgartner, 259 Fed., 722.) 
 
 jntertoTaTe's! ^®^- ^- C^^* <^f ^^Tch 3, 1917 {39 Stat., 1069) .] No let- 
 ■ ter, postal card, circular, newspaper, pamphlet, or publi- 
 cation of any kind containing any advertisement of spir- 
 ituous, vinous, malted, fermented, or other intoxicating 
 liquors of any kind, or containing a solicitation of an 
 order or orders for said liquors, or any of them, shall be 
 deposited in or carried by the mails of the United States, 
 or be delivered by any postmaster or letter ca,rrier, when 
 addressed or directed to any person, firm, corporation, or 
 association, or other addressee, at any place or point in 
 any State or Territory of the United States at ^vhicll it is 
 by the law in force in the State or Territory at that time 
 unlawful to advertise or solicit orders for such liquors, or 
 any of them respectively. 
 
 If the publisher of any newspaper or other publication 
 or the agent of such publisher, or if any dealer in such 
 liquors or his agent, shall knowingly deposit or cause to 
 be deposited, or shall knowingly send or cause to be sent, 
 anything^to be conveyed or delivered by mail in violation 
 of the provisions of this section, or shall knowingly de- 
 liver or cause to be delivered by mail anything herein for- 
 bidden to be carried by mail, shall be fined not more 
 than $1,000 or imprisoned not more than six months, or 
 both ; and for any subsequent offense shall be imprisoned 
 not more than one year. Any person violating any pro- 
 vision of this section may be tried and punished, either 
 in the district in which the unlawful matter or publica- 
 tion was mailed or to which it was carried by mail for 
 delivery, according to direction thereon, or in which it 
 was caused to be delivered by mail to the person to whom 
 it was addressed. Whoever shall order, purchase, or 
 Shipments into cRusc intoxicating liquors to be transported in interstate 
 
 fnT'saie.^™'"'"' Commerce, except for scientific, sacramental, medicinal, 
 Digitized by Microsoft® 
 
FERMENTED LIQUOKS. 323 
 
 and mechanical purposes, into any State or Territory the 
 laws of which State or Territory prohibit the manufac- 
 ture or sale therein of intoxicating liquors for beverage 
 purposes shall be punished as aforesaid : Provided, That 
 nothing herein shall authorize the shipment of liquor into 
 any State contrary to the laws of such State: Provided, 
 further, That the Postmaster General is hereby author- 
 ized and directed to make public from time to time in 
 suitable bulletins or public notices the names of States in 
 which it is unlawful to advertise or solicit orders for such 
 liquors. 
 
 By act of March 4, 1917 (39 Stat, 1202), It was provided 
 that the provisions of this section should not be in effect 
 until July 1, 1917. 
 
 Section 1110 of the act of October 3, 1917i (40 Stat., 300), 
 provided that the above section should not be construed to 
 apply to ethyl alcohol for governmental, scientific, medici- 
 nal, mechanical, manufacturing, and industrial purposes, 
 nor should said section be held to prohibit the use of the 
 mails by regularly ordained ministers of religion or by 
 officers of regularly established churches, for ordering 
 wines for sacramental uses, or by . manufacturers and deal- 
 ers for quoting and billing such wines for such purposes 
 only. 
 
 There may be a conspiracy to violate this section by 
 transporting liquor into a prohibition State, indictable 
 under Criminal Code, section 37. (Laughter v. United 
 States, 259 Fed., 94.) 
 
 To render this section applicable to a State, it must have 
 adopted a general policy of prohibition tliroughout its 
 territory, but it is not essential that such prohibition should 
 be literally without exception ; both the sale and manufac- 
 ture of liquor for sale as a beverage are prohibited under 
 various statutes of Tennessee throughout the State, and 
 transportation of liquor into State for beverage purposes 
 is in violation of this section. ( Id. ) 
 
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Chapter Six. 
 WINES AXD OTHEE BEVERAGES. 
 
 Eiec. 
 0328. 
 
 42. 
 
 43. 
 
 44. 
 45. 
 
 46. 
 
 47. 
 48. 
 
 49. 
 15. 
 
 600 ( 
 605. 
 610. 
 
 Tax on imitation of wines, how 
 paid. 
 
 Act oj October 1, 1890, as 
 amended. Wine spirits used 
 free of tax. 
 
 (Same). Wine spirits defined; 
 use of water ; alcoholic 
 strength. 
 
 ( Same ) . ( Superseded. ) 
 
 (Same). Transfer in bond and 
 use of wine spirits for forti- 
 fying .sweet wines. 
 
 (Same). Withdrawal of spirits 
 to fortify wines intended for 
 export. 
 
 (Same). Reimportation. 
 
 (Same). Penalty for using 
 spirits in fortifying wines con- 
 trary to law. 
 
 (Same). (Superseded.) 
 
 Act of August 10, 1917. Re- 
 -strictions on use of food ma- 
 terials. 
 
 Act of November 21, 1918. Use 
 of food materials in manufac- 
 ture of wine ; penalty. 
 
 Act of March 3, 1917. Advertise- 
 ments in certain States; ship- 
 ments into States prohibiting 
 sale, 
 b). Act of February 24, 1919. 
 Imported wines in customs 
 bonded warehouse. 
 
 (Same). Additional tax; gin; 
 floor tax ; exemptions ; regula- 
 tions. 
 
 (Same). Natural wine defined ; 
 use of sugar solution ; sweet 
 wines. 
 
 Sec. 
 
 611. (Same). Still wines, including 
 
 vermuth, etc. 
 
 612. (Same). Withdrawal of brandy 
 
 or wine spirits for use in forti- 
 fying wines. 
 
 613. (Same). Tax on champagne, 
 
 etc. 
 
 614. (Same). Floor tax. 
 
 615. (Same). Sweet wine ; floor tax. 
 
 616. (Same). Payment of tax by 
 
 stamp ; wines for family use. 
 
 618. (Same). Removal of domestic 
 
 wines from bonded premises; 
 wine used as distilling ma- 
 terial. ' 
 
 619. (Same). Collection of tax on 
 
 imported wines. 
 
 620. (Same). Penalty for evading 
 
 tax or any requirement of law 
 or regulations. 
 
 621. (Same). Spirit meters, locks, 
 
 and seals; assignment and 
 compensation of gangers, etc. 
 
 622. (Same). • Allowance for un- 
 
 avoidable loss of wine. 
 
 628. (Same). Tax on beverages de- 
 
 rived from cereals, etc., min- 
 eral waters, etc. 
 
 629. (Same). Returns and payment 
 
 of tax ; penalty. 
 
 630. (Same). Soft drinks mixed at 
 
 soda fountain, etc. 
 5. Act of June 7, 1906. Remission 
 of tax on grape brandy acci- 
 dentally destroyed. 
 
 Sec. 3328. On all wines, liquors, or compounds known ^^^^^ ^™ ^. 
 or denominated as wine, and made in imitation of how paid. 
 sparkling wine or champagne, but not made from grapes 
 grown in the United States, and on all liquors, not made 
 from grapes, currants, rhubarb, or berries grown in the 
 United States, but produced bj^ being rectified or mixed 
 with distilled spirits or by the infusion of any matter in 
 spirits, to be sold as wine, or as a substitute for wine, 
 there shall be levied and collected a tax of ten cents per 
 bottle or package containing not more than one pint, or 
 of twenty cents per bottle or package containing more 
 than one pint and not more than one quart, and at the 
 
 imita- 
 ines ; 
 
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 325 
 
326 WINES AND OTHER BEVERAGES. 
 
 same rate for any larger quantity of such merchandise, 
 however the same may be put up, or whatever may be the 
 package. The Commissioner of Internal Revenue shall 
 cause to be prepared suitable and special stamps denoting 
 the tax herein imposed, to be affixed to each bottle or 
 package containing such merchandise, by the person man- 
 ufacturing, compounding, or putting up the same, before 
 removal from the place of manufacture, compounding, 
 or putting up ; and said stamps shall be affixed and can- 
 celed in such manner as the Commissioner may prescribe ; 
 and the absence of such stamp from any bottle or package 
 containing such merchandise shall be prima facie evi- 
 dence that the tax thereon has not been paid, and such 
 merchandise shall be forfeited to the United States. 
 
 Any person counterfeiting, altering, or reusing said 
 stamps shall be subject to the same penalties as are im- 
 posed for the same offenses in relation to proprietary 
 stamps. 
 
 t This section has not beei^ specifically repealed but is 
 regarded as obsolete, having been apparently superseded 
 by subsequent legislation. 
 
 See section 3429, page 553, for penalties for counterfeiting, 
 etc., proprietary stamps. 
 
 Article here held none the less free from tax, as being 
 "made from grapes grown in the United States," notwith- 
 standing carbonic acid gas was injected 'by a separate 
 process of manufacture. (United States v. Wines of Blum., 
 6 Ben., 493 ; 17 Int. Rev. Rec, 181.) 
 
 GRAPE BRANDY USED FOR THE FORTIFICATION OF WINE. 
 
 ^wine^^irita Sec. 42. [Act of October 1,1890 {26 Stat., 6M), as 
 S^taif "' ^^ amended ty sec. B of act of October 22, IQlJi- {38 Stat., 
 7Ii£) , as amended by sec. 617 of act of February 24, 1919 
 {]fl Stat., i057).] That any producer of pure swefet 
 wines may use in the preparation of such sweet wines, 
 under such regulations and after the filing of such notices 
 and bonds, together with the keeping of such records and 
 the rendition of such reports as to materials and products 
 as the Commissioner of Internal Revenue, with the ap- 
 proval of the Secretary of the Treasury, may prescribe, 
 wine spirits produced by any duly authorized distiller, 
 and the Commissioner of Internal Revenue, in determin- 
 ing the liability of any distiller of wine spirits to assess- 
 ment under section 3309 of the Revised Statutes, is au- 
 thorized to allow such distiller credit in his computations 
 for the wine spirits withdrawn to be used in fortifying 
 sweet wines under this Act. 
 Wine spirits Sec. 43. [Act of October 1, 1890 {26 Stat., 621), as 
 '''*""^' amended by sec. 2 of act of October 22, 1911^ {38 Stai., 
 
 7Jf5) , as amended by sec. 617 of act of February 24, 1919 
 {40 Stat., 1057).] That the wine spirits mentioned in 
 section 42 is the product resulting from thedistillation of 
 fermented grape juice, to which water may have been 
 added V3f^tiiSd^fm^o§&fl^^^'' fermentation, for the 
 
WINES AND OTHER BEVEEAGES. 327 
 
 sole purpose of facilitating the fermentation and eco- 
 nomical distillation thereof, and shall be held to include 
 the product from grapes or their residues commonly 
 known as grape brandy, and shall include commercial 
 grape brandy which may have been colored with burnt 
 sugar or caramel ; and the pure sweet wine which may be 
 fortified with wine spirits under the provisions of this 
 Act is fermented or partially fermented grape juice 
 only, with the usual cellar treatment, and shall contain 
 no other substance whatever introduced before, at the 
 time of, or after fermentation, except as herein expressly 
 provided: Provided, That the addition of pure boiled 
 or condensed grape must or pure crystallized cane or beet 
 sugar, or pure dextrose sugar containing, respectively, 
 not less than 95 per centum of actual sugar, calculated 
 on a dry basis, or water, or any or all of them, to the „^ \l Sae™"^ 
 pure grape juice before fermentation, or to the fermented 
 product of such grape juice, or to both, prior to the 
 fortification herein provided for, either for the purpose 
 of perfecting sweet wines according to commercial stand- 
 ards or for mechanical purposes, shall not be excluded by 
 the definition of pure sweet wine aforesaid: Provided, 
 however. That the cane or beet sugar, or pure dextrose 
 sugar added for sweetening purposes shall not be in 
 excess of 11 per centum of the weight of the wine to be 
 fortified: And provided further, That the addition of 
 water herein authorized shall be under such regulations 
 as the Commissioner of Internal Revenue, with the ap- 
 proval of the Secretary of the Treasury, may from time 
 to time prescribe: Provided, however, That records kept 
 in accordance with such regulations as to the percentage 
 of saccharine, acid, alcoholic, and added water content 
 of the wine offered for fortification shall be open to in- 
 spection by any official of the Department of Agriculture 
 thereto duly authorized by the Secretary of Agriculture ; 
 but in no case shall such wines to which water has been 
 added be eligible for fortification under the provisions 
 of this Act, where the same, after fermentation and before a i c o h o i i c 
 fortification, have an alcoholic strength of less than 5 strength when 
 per centum of their volume. ™d" "'' """ 
 
 Sec. 44. {Act of Octoler 1, 1890 (£6 Stat., 621).] 
 
 Superseded by section 620, act of February 24, 1919 (40 
 Stat., 1057). 
 
 Sec. 45. {Act of Octoler 1, 1890 {26 Stat., 621), as 
 amended ly sec. 2 of act of October 22, 1911,. {38 Stat., 
 746) , a? amended hy sec. 617 of act of February 24, 1919 
 {40 Stat., 1067).] That under such regulations and 
 official supervision, and upon the execution of such 
 entries and the giving of such bonds, bills of lading, and ^I^™^"lg^ 'o" 
 other security as the Commissioner of Internal Eevenue, w°ine spiriir for 
 with the approval of the Secretary of the Treasury, shall l°[^^'"^ ™""' 
 prescribe, any producer of pure sweet wines as defined 
 by this Act may withdijppfgji^jjp)^)!^^!^® any special 
 
328 WIXES AXD OTHER BEVERAGES. 
 
 bonded warehouse in original packages or from anj^ reg- 
 istered distillery in any quantity not less than eighty 
 wine gallons, and may use so much of the same as may be 
 required by him under such regulations, and after the 
 filing of such notices and bonds and the keeping of such 
 records and the rendition of such reports as to materials 
 and products and the disposition of the same as the Com- 
 missioner of Internal Revenue, with the approval of the 
 Secretary of the Treasury, shall prescribe, in fortifying 
 the pure sweet wines made by him, and for no other 
 purpose, in accordance with the foregoing limitations 
 and provisions ; and the Commissioner of Internal Reve- 
 nue, with the approval of the Secretary of the Treasury, 
 is authorized whenever he shall deem it to be necessary 
 for the prevention of violations of this law to prescribe 
 that wine spirits withdrawn under this section shall not 
 be used to fortify wines except at a certain distance pre- 
 Location of scribed by him from any distillery, rectifying house, 
 IviTOr' ma/ "e winery, or other establishment used for producing or 
 fortified. storing distilled spirits, or for making or storing wines 
 
 other than wines which are so fortified, and that in the 
 building in which such fortification of wines is prac- 
 ticed no wines or spirits other than those permitted by 
 this regulation shall be stored in any room or part of the 
 building in which fortification oi wines is practiced. 
 The use of wine spirits for the fortification of sweet 
 Supervision of wines uuder this Act shall be under the immediate super— 
 winesr '°° " vision of an oiEcer of internal revenue, who shall make 
 returns describing the kinds and quantities of wine so 
 fortified, and shall affix such stamps and seals to the ■ 
 packages containing such wines as may be prescribed by 
 the Commissioner of Internal Revenue, with the ap- 
 proval of the Secretary of the Treasury; and the Com- 
 missioner of Internal Revenue, with the approval of the 
 Secretary of the Treasury, shall provide by regulations 
 the time within which wines so fortified with the wine 
 spirits so withdrawn may be subject to inspection, and 
 for final accounting for the use of such wine spirits and 
 for rewarehousing or for payment of the tax on any 
 portion of such wine spirits which remain not used in 
 fortifying pure sweet wines. 
 Withdrawal Sec. 46. [Act^ of Octobev i, 1890 {£6 Stat., 621).] 
 fortifr"'v*i n e s That wiue-splrits may be withdrawn from special 
 port?'''"' ^°^ *"' t)onded warehouses at the instance of any person desir- 
 ing to use the same to fortify any wines, in accordance 
 with commercial demands of foreign markets, when such 
 wines are intended for exportation, without the pay- 
 ment of tax on the amount of wine spirits used in such 
 fortification, under such regulations, and after making 
 such entries, and executing and filing with the collector 
 of the district from which the removal is to be made such 
 bonds and bills of lading, and giving such other addi- 
 tional secyuritv to j)revfint tlm^^use of such wine-spirits 
 
WINES AND OTHER BEVERAGES. 329 
 
 free of tax otherwise than in the fortification of wine 
 intended for exportation, and for the due exportation 
 of the wine so fortified, as may be prescribed by the 
 Commissioner of Internal Revenue, with the approval 
 of the Secretary of the Treasury; and all of the provi- 
 sions of law governing the exportation of distilled 
 spirits free of tax, so far as applicable, shall apply to 
 the withdrawal and use of wine-spirits and the exporta- 
 tion of the same in accordance with this section; and 
 the Commissioner of Internal Revenue is authorized, 
 subject to approval by the Secretary of the Treasury, 
 to prescribe that wine spirits intended for the fortifica- 
 tion of wines under this section shall not be introduced 
 into such wines except under the immediate supervi- 
 sion of an officer of internal revenue, who shall make 
 returns describing the kinds and quantities of wine so 
 fortified, and shall affix such stamps and seals to the 
 packages containing such wines as may be prescribed by 
 the Commissioner of Internal Revenue, with the ap- 
 proval of the Secretary of the Treasury. Whenever such 
 wine-spirits are withdrawn as provided herein for the 
 fortification of wines intended for exportation by sea 
 they shall be introduced into such wines only after re- 
 moval from storage and arrival alongside of the vessel 
 which is to transport the same; and whenever trans- 
 portation of such wines is to be effected by land car- 
 riage the Commissioner of Internal Revenue, with the 
 approval of the Secretary of the Treasury, shall pre- 
 scribe such regulations as to sealing packages and vehi- 
 cles containing the same, and as to the supervision of 
 transportation from the point of departure, which point 
 shall be determined as the place where such wine-spirits 
 may be introduced into such wines to the point of desti- 
 nation as may be necessary to insure the due exporta- 
 tion of such fortified wines. 
 
 The above section was amended by act of October 22, 
 1914, section 24 of wliicli provided that the taxes levied 
 under the act were to be no longer levied and collected 
 after December 31, 1915. This limitation ^vas extended to 
 December 31, 1916, by Resolution of December 17, 1915. 
 Act of September 8, 1916, expressly repealed the act of 
 October 22, 1914, with certain exceptions, and the Resolu- 
 tion of December 17, 1915; and the act of September S, 
 1916, was expressly repealed by act of February 24, 1919. 
 
 Provisions of Regulations 29, governing the exportation 
 of distilled spirits, extended to withdrawal of brandy for 
 use in fortifving wines for export, and to the exporta- 
 tion of such fortified wines. (T. D. 1663.) 
 
 Sec. 47. [Act of Octoher 1, 1890 {2d Stat., 623).] Reimportation. 
 That all provisions of law relating to the re-importation 
 of any goods of domestic growth or manufacture which 
 were originally liable to an internal-revenue tax shall 
 be, as far as applicable, enforced against any domestic 
 wines sought to be re-imported; and duty shall be levied 
 
 Digitized by Microsoft® 
 
330 WISES ASTD OTHER BEVEBAGES. 
 
 and collected upon the same when re-imported, as an 
 original importation. 
 
 This section was not expressly repealed, but is covered 
 by Par. P, Section IV, act of October 3, 1913 (38 Stat;, 201), 
 reading as follows : " That upon the reimportation of arti- 
 cles once exported, of the growth, product, or manufacture 
 of the United States, upon which no Internal tax has been 
 assessed or paid, or upon which such tax has been paid 
 and refunded by allowance or drawback, there shall be 
 levied, collected, and paid a duty equal to the tax Imposed 
 by the internal-revenue laws upon such articles, except 
 articles manufactured in bonded warehouses and exported 
 pursuant to law, which shall be subject to the same rate 
 of duty as if originally imported, but proof of the identity 
 of such articles shall be made under general regulations to 
 be prescribed by the Secretary of the Treasury." 
 
 usi^r\'^Lt/°n^S^c. 48. [Act of October 1, 1890 {26 Stat., m).] 
 fortifying wines 1 hat any person using wine spirits or other spirits which 
 contrary to law. ]j^yg j^^j. \,qqyi tax-paid in fortifying wine otherwise than 
 as provided for in this act, shall ,be guilty of a misde- 
 meanor, and shall, on conviction thereof, be punished 
 for each offense by a fine of not more than two thou- 
 sand dollars, and for every offense other than the first 
 also by imprisonment for not more than one year. 
 
 Superseded by section 620, act bf February 24, 1919, as 
 far as violations of such act are concerned. 
 
 Sec. 49. [Act of October 1, 1890 {26 Stat., e£3), as 
 
 aTuended by sec. 2, act of June 7, 1906 {34 Stat., 215). '\ 
 
 Superseded by section 618 (a), act of February 24, 1919. 
 
 u.e^of foodTa" Sec. 15. [Act of Auffust 10, 1917 {Jfi Stat., Wr6) .J That 
 teriaia. from and after thirty days from the date of the approval 
 
 of this act no foods, fruits, food materials, or feeds shall 
 be used in the production of distilled spirits for Ijeverage 
 purposes: Provided, That, under such rules, regulations, 
 and bonds as the President may prescribe, such materials 
 may be used in the production of distilled spirits ex- 
 clusively for other than beverage purposes, or for the 
 fortification of pure swee£ wines as defined by the act 
 entitled ''An act to increase the revenue, and for other 
 purposes," a.pproved September eighth, nineteen hundred 
 and sixteen. Nor shall there be imported into the United 
 States any distilled spirits. Whenever the President shall 
 find that limitation, regulation, or prohibition of the use 
 of foods, fruits, food materials, or feeds in the production 
 of malt or vinous liquors for beverage purposes, or that 
 reduction of the alcoholic content of any such malt or 
 vinous liquor is essential in order to assure an adequate 
 and continuous supply of food, or that the national 
 security and defense will be subserved thereby, he is 
 authorized, from time to time, to prescribe and give public 
 notice of the extent of the limitation, regulation, prohibi- 
 tion, or reduction so necessitated. Whenever such notice 
 shall have been given and shall remain unrevoked no per- 
 son shalJ5;g»2ffe©c/i&)yTMe(aSiiS*M®time prescribed in such 
 
WINES AND OTHER BEVERAGES. 331 
 
 notice, use anj* foods, fruits, food materials, or feeds in 
 the production of malt or vinous liquors, or iniport any 
 such liquors except under license issued by the President 
 and in compliance with rules and regulations determined 
 by him governing the production and importation of such 
 liquors and the alcoholic content thereof. Any person P«"»ity- 
 who willfully violates the provisions of this section, or 
 who shall use any foods, fruits, food materials, or feeds 
 in the production of malt or vinous liquors, or who shall 
 import any such liquors, without first obtaining a license 
 so to do when a license is required under this section, or 
 who shall violate any rule or regulation made under this 
 section, shall be punished by a fine not exceeding $5,000 
 or by imprisonment for not more than two yekrs, or both : 
 Provided further^ That nothing in this section shall be 
 construed to authorize the licensing of the manufacture 
 of vinous or malt liquors in any State, Territory, or the 
 District of Columbia, or any civil subdivision thereof, 
 where the manufacture of such vinous or malt liquor is 
 prohibited. 
 
 A Proclamation. 
 
 Whereas, imdei- and by virtue of aa act of Congress en- 
 titled "An act to provide further for the national security 
 and defense by encouraging the production, conser^-ing the 
 supply, and controlling the distribution of food products 
 and fuel," approved by the President on August 10, 1917, 
 It is provided in section 15, among other things, as follows : 
 
 " Whenever the President shall find that limitation, regu- 
 lation, or prohibition of the use of foods, fruits, food ma- 
 terials, or feeds in the production of malt or vinous liquors 
 for beverage purposes, or that reduction of the alcoholic 
 content of any such malt or vinous liquor, is essential, in 
 order to assure an adequate and continuous supply of food, 
 or that the national security and defense will be subserved 
 thereby, he is authorized, from time to time, to prescribe 
 and give public notice of the extent of the limitation, regu- 
 lation, prohibition, or reduction so necessitated. Whenever 
 such notice shall have been given and shall remain unre- 
 voked, no person shall, after a reasonable time prescribed 
 in such notice, use any foods, fruits, food materials, or 
 feeds in the production of malt or vinous liquors, or im- 
 port any such liquors except under license Issued by the 
 President and in compliance with rules and regulations de- 
 termined by him governing the production and importation 
 of such liquors and the alcoholic content thereof." 
 
 Now, therefore, I, Woodrow Wilson, President of the 
 United States of America, by virtue of the powers conferred 
 on me by said act of Congress, do hereby find and determine 
 that It is essential, in order to assure an adequate and 
 continuous supply of food, in order to subserve the na- 
 tional security and defense, and because of the increasing 
 requirements of war industries for the fuel productive 
 capacity of the country, the strain upon transportation to 
 serve such industries, and the shortage of labor caused by 
 the necessity of increasing the armed forces of the United 
 States, that the use of sugar, glucose, corn, rice, or any 
 other foods, fruits, food materials and feeds in the produc- 
 tion of malt liquors, including near beer, for beverage pur- 
 poses, be prohibited. And by this proclamation I prescribe 
 and give pubUc noticeH;tiat-;,WHmJ/l5»ftm.<^8^er 1, 1918, 
 
332 
 
 ■WINES A5fD OTHER BEVERAGES. 
 
 no person shall use any sugar, glucose, corn, rice, or .iny 
 other foods, fruits, food materials, or feeds, except hops 
 and malt now already made, in the production of malt 
 liquors, including near beer, for beverage purposes, whether 
 or not such malt liquors contain alcohol, and on and after 
 December 1, 1918, no person shall use any sugar, glucose, 
 corn, rice, or any other foods, fruits, food materials, or 
 feeds, including malt', in the production of malt liquors, in- 
 cluding near beer, for beverage purposes, whether or npt 
 such malt liquors contain alcohol. 
 
 In witness whereof, I have hereunto set my hand and 
 caused the seal of the United States to be affixed. 
 
 Done in the District of Columbia, this 16th day of Sep- 
 tember in the year of our Lord One Thousand Nine Hun- 
 dred and Eighteen, and of the Independence of the United 
 States of America the One Hundred and Forty-third. 
 
 WooDBOW Wilson. 
 
 By the President: 
 
 RoBEBT Lansing, 
 
 Secretary of State. 
 
 Rules and Regulations Goveening the Peoduction or 
 Malt Liquoes and the Alcohouc Contents Thekeof. 
 
 " Promulgated by the President under the authority of 
 section 15, of the act of Congress, approved August 10, 1917, 
 entitled 'An act to provide further for the national security 
 and defense by encouraging the production, conserving the 
 supply, and controlling the distribution of food products 
 and fuel,' and in accordance with proclamations concerning 
 malt liquor, issued December 8, 1917, and September 16, 
 1918. 
 
 Rule 1. During the period from October 1, 1918, to 
 December 1, 1918, only malt and hops shall be used in the 
 production of any malt liquor, provided that any dextrlnous 
 or other syrups which have been -specially prepared for the 
 manufacture of near-beer and which are in the licensee's 
 possession or shipped to him prior to October 1, 1918, may 
 be used in the manufacture of such near-beer. 
 
 Rule 2. The limitations on quantity of malt and hops used 
 in the manufacture of beer or near-beer, contained in the 
 proclamation of December 8, 1917, shall not apply during the 
 period from October 1, 1918, to December 1, 1918, but nothing 
 in this rule shall be construed to modify in any way the 
 limitation on alcoholic content of malt liquor prescribed by 
 said proclamation of December 8, 1917. 
 
 Rule 3. No person shall import any malt liquor for bev- 
 erage purposes on and after December 1, 1918. 
 
 Rule 4. The prohibitions contained in the proclamation of 
 September 16, 1918, shall not apply to material actually in 
 process of manufacture prior to the dates named in said 
 proclamation, but the fact that material is on hand in the 
 brewery or factory shall not authorize any exception to be 
 made other than that referred to in Rule 1. 
 
 The foregoing regulations are approved on this 30th day 
 of September, 1918, superseding all prior regulations incon- 
 sistent herewith." 
 
 WooDEOW Wilson. 
 
 Instructions as to sale and use of wines for other than 
 beverage purposes under the food control act of August 10, 
 1917. (T. D. 2788.) Modified by T. D. 2854; also by T. D. 
 2912 as to wines for sacramental purposes. Alternative 
 form of application for sacramental wines set forth in T. D. 
 2888. 
 
 Procedure in securing permits and giving bonds for sale 
 and TBigitizeSdtb^iMiprfiWS^ wines for other than bever- 
 
WINES AND OTHER BEVERAGES. -333 
 
 ' age purposes, including wines for sacramental purposes. 
 (T. Ds. 2940, 2946.) 
 
 Production of wines containing more than 24 per cent 
 of absolute alcohol by volume for beverage purposes pro- 
 hibited. (T. D. 2748.) 
 
 Sec. 1. [Act of Noveniber m, 1918 {Jfi Stat., 10^6)— use of tood 
 Extract.'] After May first, nineteen- hundred and nine- p ^ °„f j"t„'/ j," 
 teen, until the conclusion of the present war and thereafter wine. 
 until the termination of demobilization, the date of which 
 shall be determined and proclaimed by the President 
 of the United States, no grains, cereals, fruit, or other 
 food product shall be used m the manufacture or produc- 
 tion of * wine, or other intoxicating * vinous liquor 
 for beverage purposes. After June thirtieth, nineteen 
 hundred and nineteen, until the conclusion of the present 
 Avar and thereafter until the termination of demobiliza- 
 tion, the date of which shall be determined and pro- 
 claimed by the President of the United States, no * 
 wine, or other intoxicating * vinous liquor shall be sold 
 for beverage purposes except for export. The Commis- 
 sioner of Internal Revenue is hereby authorized and di- 
 rected to prescribe rules and regulations, subject to the 
 approval of the Secretary of wxe Treasury, in regard 
 * * * to the manufacture, sale, and distribution of 
 wine for sacramental, medicinal, or other than beverage 
 uses. After the approval of this Act no * vinous, or 
 other intoxicating liquors shall be imported into the 
 United States during the continuance of the present war 
 and period of demobilization : Provided, That this pro- 
 vision against importation shall not apply to shipments 
 en route to the United States at the time of the passage of 
 this Act. 
 
 Any person who violates any of the foregoing pro- Penalty. 
 visions shall be punished by imprisonment not exceeding 
 one year, or by fine not exceeding $1,000, or by both such 
 imprisonment and fine : Provided, That the President of 
 the United States be, and hereby is, authorized and em- 
 powered, at any time after the passage of this Act, to es- 
 tablish zones of such size as he may deem advisable about 
 coal mines, munition factories, shipbuilding plants, and 
 such other plants for war material as may seem to him to 
 require such action whenever in his opinion the creation 
 of such zones is necessary to, or advisable in, the proper 
 prosecution of the war, and that he is hereby authorized 
 and empowered to prohibit the sale, manufacture, or dis- 
 tribution of intoxicating liquors in such zones, and that 
 any violation of the President's regulations in this regard 
 shall be punished by imprisonment for not more than one 
 year, or by fine of not more than $1,000, or by both such 
 Sne and imprisonment : Provided further, That nothing 
 in this Act shall be construed to interfere with the power 
 conferred upon the President by section fifteen of the 
 food-control Act, approved August tenth, nineteen hun- 
 
 Digitized by Microsoft® 
 
334 WINES AKD OTHER BEVERAGES. 
 
 dred. and seventeen (Public Numbered Forty, Sixty -fifth. 
 Congress) . 
 
 Regulations relative to export of distilled spirits and 
 wines, and use of wines or liquors for medicinal, sacramental, 
 or nonbeverage purposes. (T. Ds. 2881, 2959.) 
 
 The act of November 21, 1918, Is not in violation of the 
 fiftU amendment to the Constitution, is not void by rea- 
 son of the passing of the war emergency, was not repealed 
 by the adoption of the eighteenth amendment to the Con- 
 stitution, and did not expire by limitation in that the vrar 
 is at an end, the President not having determined and 
 proclaimed the date of termination of demobilization. 
 (Hamilton v, Kentucky Distilleries & Warehouse Co. ; Dry- 
 foos V. Edwards. Decided by United States Supreme Court 
 Decemher 15, 1919, but not yet ofiBcially reported.) 
 
 Use of nonbeverage distilled spirits or alcohol In filling 
 physicians' prescriptions ; T. D. 2881 modified. (T. D. 
 2934.) 
 
 Procedure in securing permits and giving bonds for sale 
 and use of wines for other than beverage purposes, Includ- 
 ing wines for sacramental purposes." <T. Ds. 2940, 2946.) 
 
 Indictment charging violation of this section by manufac- 
 ture of malt liquor having alcohoUe content of one-half of 
 one per cent or more, but not alleging same to be intoxi- 
 cating, is subject to demurrer. ( United States v. Standard 
 Brewery, 260 Fed., 486.) 
 
 Congress has constitutional power to prohibit manufacture 
 and sale of .intoxicating liquors during war. (United 
 States a: Baumgartner, 259 Fed., 722.) 
 
 This act is constitutional. (United States v. Ranler 
 Brewing Co., 259 Fed., 359.) 
 
 This section, whether construed to prohibit manufacture 
 of any beer or wine, or only such as is intoxicating, is con- 
 stitutional. (Jacob Hoffman Brewing Co. v. McElllgott, 
 259 Fed., 321.) 
 
 This act does not prohibit manufacture or sale of beer 
 which is not intoxicating. (United States v. Petts, 260 
 Fed., 663.) 
 
 Ruling on demurrer to information charging violation of 
 this act by manufacturer of beer for beverage purposes, 
 where purpose was to obtain construction of statute and 
 ruling as to whether particular beverage was within this 
 prohibition. (United States v. Bergner & Engel Brewing 
 Co., 260 Fed., 764.) 
 
 Vehicle or animal committed by owner to possession of 
 third person, who uses it in removal of goods or commodi- 
 ties to defraud United States of tax injposed thereon, is 
 subject to forfeiture though owner had no knowledge of 
 illegal use. (Logan v. United States, 260 Fed., 746.) 
 
 Act held constitutional, as within war powers of Con- 
 gress in dealing with conditions growing out of termina- 
 tion of hostilities and demobilization of army. (Scatina v. 
 Oaffey, 260Fed., 756.) 
 
 Information charging violation of this act need not aver 
 that beer alleged to have been manufactured or sold was 
 intoxicating. (United States t>. Pittsburgh Brewing Co., 260 
 Fed., 762.) 
 
 This act does not violate tenth amendment to Federal 
 Constitution. (United States v. Minery, 259 Fed., 707.) 
 
 Eighteenth amendment to the Federal Constitution does 
 not invalidate act of November 21, 1918, upon ground that 
 prohibition legislation is precluded until 1920. ( Id. ) 
 
 This act is applicable te sale on July 8, 1919, since no 
 treaty had then been signed with Austria and the army 
 had not been entirely demobilized. (Id.) 
 
 DigifizeciDy Miprosoff® 
 
WIIifES AND OTHER BBVEBAUBS. 336 
 
 TMs act prevents only the manufacture and sale of beer, 
 wine, etc., which are in fact intoxicating. (Jacob HofCman 
 Brewing Co. r. McElligott, 259 Fed., 525 ; United States r. 
 Baumgartner, 259 Ifed. 722.) 
 
 Sec. 5. [Act of March 3, 1917 {S9 Stat., 1069).] No i/^S'^l^/j^" 
 letter, postal card, circular, newspaper, pamphlet, or pub- 
 lication of any kind containing any advertisement of 
 spirituous, vinous, malted, fermented, or other intoxicat- 
 ing liquors of any kind, or containing a solicitation of an 
 order or orders for said liquors, or any of them, shall be 
 deposited in or carried by the mails of the United States, 
 or be delivered by any postmaster or letter carrier, when 
 addressed or directed to any person, firm, corporation, or 
 association, or other addressee, at any place or point in 
 any State or Territory of the United States at which, it 
 is by the law in force in the State or Territory at that 
 time unlawful to advertise or solicit orders for such 
 liquors, or any of them respectively. 
 
 If the publisher of any newspaper or other publication 
 or the agent of such publisher, or if any dealer in such 
 liquors or his agent, shall knowingly deposit or caiise to 
 be deposited, or shall knowingly send or cause to be sent, 
 anything to be conveyed or delivered by mail in violation 
 of the provisions of this section, or shall knowingly de- 
 liver or cause to be delivered by mail anything herein 
 forbidden to be carried by mail, shall be fined not more 
 than $1,000 or imprisoned not more than six months, or 
 both ; and for any subsequent offense shall be imprisoned 
 not more than one year. Any person violating any pro- 
 vision of this section may be tried and punished, either 
 in the district in which the unlawful matter or publica- 
 tion was mailed or to which it was carried by mail for de- 
 livery, according to direction thereon, or in which it was 
 caused to be delivered by mail to the person to whom it 
 was addressed. Whoever shall order, purchase, or cause 
 intoxicating liquors to be transported in interstate com- „ shipments into 
 
 Ojj .,.rt ^ , -. -.. . , -, state proniDit>. 
 
 merce, except for scientinc, sacramental, medicinal, and ing sale. 
 mechanical purposes, into any State or Territory the laws 
 of which State or Territory prohibit the manufacture or 
 sale therein of intoxicating liquors for beverage purposes 
 shall be punished as aforesaid : Provided, That nothing 
 herein shall authorize the shipment of liquor into any 
 State contrary to the laws of such State: Provided fur- 
 ther, That the Postmaster General is hereby authorized 
 and directed to make public from time to time in suitable 
 bulletins or public notices the names of States in which 
 it is unlawful to advertise or solicit orders for such 
 liquors. 
 
 By act of March 4, 1917 (39 Stat., 1202), it was provided 
 that the provisions of this section should not be in effect 
 until July 1, 1917. 
 
 Section 1110 of the act of October 3, 1917 (40 Stat., 329), 
 provided that the above section should not be construed to 
 
 Digitized by Microsoft® 
 
336 WINES AND OTHEE BEVERAGES. 
 
 apply to ethyl alcohol for governmental, scientific, medici- 
 nal, mechanical, manufacturing, and industrial purposes, 
 nor should said section be held to prohibit the use of the 
 mails by regularly ordained ministers of religion or by 
 officers of regularly established churches, for ordering 
 wines for sacramental uses, or by manufacturers and deal- 
 ers for quoting and billing such wines for such pur- 
 poses only. 
 
 There may be a conspiracy to violate this section by 
 transporting liquor into a prohibition State, indictable 
 under Criminal Code, section 37. (Laughter v. United 
 States, 259 Fed., 94.) 
 
 To render this section applicable to a State, it must have 
 adopted a general policy of prohibition throughout its terri- 
 tory, but it is not essential that such prohibition should be 
 literally without exception; both the sale and manufacture 
 of liquor for sale as a beverage are prohibited under va- 
 rious statutes of Tennessee throughout the State, and 
 transportation of liquor Into State for beverage purposes is 
 in violation of this section. (Id.) 
 
 r.ilo^'^i^M^- Sec. 600 (b). [Act of February H, 1919 {Ifi Stat., 
 toDw bonded i<?57). — ExtractJ] Under regulations prescribed by the 
 warehouse. Secretary, any imported distilled spirits, wines or other 
 
 liquors which may be in any customs bonded warehouse 
 under the customs laws on the date such prohibition takes 
 effect shall be permitted to remain therein without pay- 
 ment of. any taxes or duties thereon, beyond the three- 
 year period provided in section 2971 of the Revised Stat- 
 utes, during such period of prohibition ; and may be ex- 
 ported at any time during such extended period. Any 
 imported spirits, wines or other liquors as to which the 
 three-year bonded period may expire after the passage of 
 this Act and prior to the date such prohibition takes 
 effect may at the option of the owner remain in bond dur- 
 ing such period of prohibition. 
 ^^ Additional gj,,.,_ gQg_ |- ,^^^ ^^ Fehruary U, 1919 {Ifi Stat., 1057).] 
 
 That in addition to the tax imposed by this xVct on dis- 
 tilled spirits and wines, there shall be levied, assessed, 
 collected, and paid, in lieu of the tax imposed by section 
 304 of the Revenue Act of 1917, a tax of 30 cents on each 
 proof gallon and a proportionate tax at a like rate on all 
 fractional parts of such proof gallon on all distilled 
 spirits or wines hereafter rectified, purified, or refined 
 in such manner, and on all mixtures hereafter produced 
 in such manner, that the person so rectifying, purifying, 
 refining, or mixing the same is a rectifier within the mean- 
 ing of section 3244 of the Revised Statutes, as amended : 
 
 cin. Provided, That this tax shall not apply to gin produced 
 
 by the redistillation of a pure spirit over juniper berries 
 and other aromatics. 
 
 Floor tax. Upon all such articles heretofore produced, and which 
 
 on the day after the passage of this Act are held by any 
 person and intended for sale, there shall be levied, 
 assessed, collected, and paid a floor tax of 15 cents on 
 each proof gallon, and a proportionate tax at a like rate 
 on all fractional parts of each proof gallon ; and all such 
 
 Digitized by Microsoft® 
 
WINES AND OTHER BEVERAGES. 337 
 
 distilled spirits so held and not contained in the distillers' 
 ■original stamped packages, or in bottles or other con- 
 tainers bearing the distillers' original labels, shall for the 
 purpose of this section be regarded as rectified spirits. 
 
 ^Vhen the process of rectification is completed and the Addition of 
 taxes prescribed by this section have been paid, it shall subsurc" 
 be unlawful for the rectifier or other dealer to reduce in 
 proof or increase in volume such spirits or wine by the 
 addition of water or other substance ; nothing herein con- 
 tained shall, however, prevent a .rectifier from using 
 again in the process of rectification spirits already recti- 
 fied and upon which the taxes have theretofore been 
 paid. 
 
 The taxes imposed by this section shall not attach to Exemptions. 
 cordials or liqueurs on which a tax is imposed and paid 
 under section 611 or 613, nor to the mixing and blending 
 of wines, where such blending is for the sole purpose of 
 perfecting such wines according to commercial stand- 
 ards, nor to blends made exclusively of two or more pure 
 straight whisldeSuaged in wood for a period not less than 
 four years and without the addition of coloring or flavor- 
 ing matter or any other substance than pure water and 
 if not reduced below ninety proof: Provided, That such 
 blended whiskies shall be exempt from tax under this 
 section only when compounded under the immediate 
 supervision of a revenue officer, in such tanks and under 
 such conditions and supervision as the Commissioner, 
 with the approval of the Secretary, may prescribe. 
 
 All distilled spirits or wines taxable under this section 
 shall be subject to uniform regulations concerning the uniformity oi 
 use thereof in the manufacture, blending, compounding, ''<=s"'^''°"=- 
 mixing, marldng, branding, and sale of whisky and recti- 
 fied spirits, and no discrimination whatsoever shall be 
 made by Reason of a difference in the character of the 
 material from which same may have been produced. 
 
 :fc Jf; * :{: * 
 
 Whoever violates any of the provisions of this section Penalty, 
 shall be deemed to be guilty of a misdemeanor and, upon 
 conviction, shall be fined not more than $1,000 or im,- 
 prisoned not more than two years, and shall, in addition, 
 be liable to double the tax evaded, together with the tax, 
 to be collected by assessment or on any bond given. 
 
 Eegulations as to floor tax. (T. D. 2801.) 
 
 Sec. 610. ^Act of February H, 1919 {Ifi Stat., 1057). 
 That natural wine within the meaning of this Act shal 
 be deemed to be the product made from the norma 
 alcoholic fermentation of the juice of sound, ripe grapes, 
 without addition or abstraction, except such as may occur 
 in the usual cellar treatment of clarifying and aging: 
 Provided, however, That the product made from the 
 juice of sound, ripe grapes by complete fermentation of 
 the must under proper cellar treatment and corrected by 
 140184°— 20 22 
 
 Digitized by Microsoft® 
 
 Natural 
 defined. 
 
338 WiSTfiS AiTD QTHER ■BEVEEA'SES. 
 
 tlifi additiaa (un<ier the fiUipervisioii of a gaug«r or store- 
 keeper -ganger in tlifi capacity of gauger) of a solution 
 
 tion,"^* of.'"'" '^^ water and pure cane, beet, or dextrose sugar {contain- 
 ing, respeetiTely, not less tlmn 95 per centum of actual 
 sugar, calculated on -a d,ry basis) to the must or to the 
 wine, to correct natural deficiencies, when such addition 
 shall not increase the volume of the resultant product 
 more than 35 per centum, and the resultant product does 
 not contain less tliaji five parts per thousand of acid be- 
 
 hoit"'er*cent'ofl fore fermentation and not more than 13 per centum of 
 alcohol after complete fermentation, sikaU be deemed to 
 he wine within the meaniag of this Act, and may be 
 labeled, transported, and sold as "wine," qualified by 
 tlie name of the locality where produced and may be 
 further qualified b}' the name of its own particular type 
 or variety: A9id provided further. That wine as defined 
 in tliis section may be sweetened with cane sugar or beet 
 sugar or pure condensed gra^pe must and fortified under 
 the provisions of this Act, and wines so sweetened or 
 fortified shall be considered sweet wine within the mean- 
 ing of this Act. 
 
 Use of sugar solution in profltietion of wine. (T. 'Ds. 
 2469. 2470.) 
 
 Sec. 611. [Act of February U, ip9 (Jfl Stat., 1057).] 
 That upon all still wines, including vermuth, and all 
 incfudlW "'c^r- artificial or imitation wines or componnds sold as still 
 muth and artifi- wine, wliich are hereafter produced in or imported into 
 the United States, or which on the day after the passage 
 of this act are on any winery premises or other bonded 
 premises or in transit thereto or at any 'bnstomhbiise, 
 tliere shall be levied, collected, and ]5aid, in lieu of the 
 internal-revenue taxes now imposed thereon by law, taxes 
 at rates as follows, when sold, or removed for consump- 
 tion or sale : » 
 
 On wines containing not more than 14 per centum of 
 absolitte alcohol, 16 cents per wine gallon, the per centum 
 of alcohol taxable under this section to he reckoned by 
 volnme and not by weight'; 
 
 On wines containing more than 14 per centum and not 
 exceeding 21 per centnm of absolute alcohol, 40 cents 
 per wine gallon; 
 
 On wines containing more than "21 per centum and not 
 exceeding 24 per centum of ateoiute alcohol, $1 per wine 
 gallon ; 
 
 All such wines containing more than 24 per centum of 
 Taxability as absolute alcohol by volume shall be classed as distilled 
 distilled Bpirits. spirits and shall pay tax accordingly. 
 
 Honey -frine classed a-s liqueurs. wsudSals, etc. <T. D. 
 2295.) 
 
 Instructions as to pavment of tax on imports wines, 
 cordials, etc. (T. D. 2391.) 
 
 Stamps may 'be affixed to casks or cases of Imported 
 wines instead of to customs eiAvj. (T. D. 2414.) 
 
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WINES AND OTHER BEVERAGES. 
 
 339 
 
 Rate of tax on 
 champagnes, etc. 
 
 Wine maker responsible for correct determination of 
 alcoholic content of wine. (T. D. 2400.) 
 
 Regulations as to floor tax. (T. D. 2801.) 
 
 Sec. 612. [Act of Felruanj 21^, 1919 (40 Stat., 1057).] ^,Y^f''^7^i,°i 
 That under such regulations and official supervision and ep^.ts for use in 
 upon the giving of such notices, entries, bonds, and other °^ ' '^'"^ "'™^' 
 security as the Commissioner, with the approval of the 
 Secretary, may prescribe, any producer of wines defined 
 under the provisions of this title, may withdraw from 
 any fruit distillery or special bonded warehouse grape 
 brandy, or wine spirits, for the fortification of such wines 
 on the premises where actually made: Provided, That 
 there shall be levied and assessed against the producer of 
 such wines a tax (in lieu of the internal-revenue tax now 
 imposed thereon by law) of 60 cents per proof gallon of 
 grape brandy or wine spirits whenever withdrawn and 
 hereafter so used by him in the fortification of such wines 
 during the preceding month, which assessment shall be 
 paid by him within ten months from the date of notice 
 thereof : Provided further, That nothing contained in this 
 section shall be construed as exempting any wines, 
 cordials, liqueurs, or similar compounds from the pay- 
 ment of any tax provided for in this title. 
 
 Sec. 613. [Act of Fehruaay 2h, 1919 (Ifi Stat., 1057). ] 
 That upon the following articles which are hereafter pro- 
 duced in or imported into the United States, or which on 
 the day after the passage of this Act are on any winery 
 premises or other bonded premises or in transit thereto 
 or at any custoriihouse, there shall be levied, collected, 
 and paid taxes at rates as follows, when sold, or removed 
 for consumption or sale : 
 
 On each bottle or other container of champagne or 
 sparkling wine, 12 cents on each one-half pint or frac- 
 tion thereof ; 
 
 On each bottle or other container of artificially car- 
 bonated wine, 6 cents on each one-half pint or fraction 
 thereof ; 
 
 On each bottle or other container of liqueurs, cordials, 
 or similar compounds, by whatever name sold or offered 
 for sale, containing sweet wine fortified with grape 
 brandy, 6 cents on each one-half pint or fraction thereof. 
 
 The tax imposed by this section shall, in the case of any 
 article upon which a corresponding internal-revenue tax 
 is now imposed by law, be in lieu of such tax. 
 Floor tax regulations. (T. D. 2801.) 
 
 Sec. 614. [Act of February U, 1919 {Ifl Stat., 1057).] 
 That upon all articles specified in section 611 or 613 
 upon which the internal-revenue tax now imposed by 
 law has been paid and which are on the day after the 
 passage of this Act held by any person and intended for 
 sale, there shall be levied, collected, and paid a floor tax 
 
 Floor tax. 
 
 Digitized by Microsoft® 
 
340 
 
 WINES AND OTHER BEVERAGES. 
 
 Sweet 
 fiooi* tax. 
 
 b_v f-tamp. 
 
 equal to the difference between the tax imposed by this 
 Act and the tax so paid. 
 
 Regulations. (T. D. 2801.) 
 
 Sec. 615. [Act of Fehruary 2Jf, 1919 {Ifi Stat., 1057).] 
 That upon all sweet wines held for sale hy the producer 
 thereof upon the day after the passage of this Act there 
 shall be levied, assessed, collected, and paid a floor tax 
 equivalent to 30 cents per proof gallon upon the grape 
 brandy or wine spirits used in the fortification of such 
 wine. 
 paymert of tax g^^^ gjg_ |-^^^ ^j. jTehruafy U, 1919 -{40 Stat., 1057) .J 
 
 That the taxes imposed by section 611 or 613 shall be 
 paid by stamp on removal of the wines from the custom- 
 house, winery, or other bonded place of storage for con- 
 sumption or sale, and every person hereafter producing, 
 or having in his possession or under his control when this 
 title takes effect, any wines subject to the tax imposed in 
 section 611 or 613 shall file such notice, describing the 
 premises on which such wines are produced or stored; 
 shall execute a bond in such form; shall make such in- 
 ventories under oath ; and shall, prior to sale or removal 
 for consumption, affix to each cask or vessel containing 
 such wine such marks, labels, or stamps as the Commis- 
 sioner, with the approval of the Secretary, may from time 
 to time prescribe; and the premises described in such 
 notice shall, for the purpose of this Act, be regarded as 
 bonded premises. But the provisions of this section, ex- 
 cept as to payment of tax and the affixing of the requii^d 
 stamps or labels, shall not apply to wines held by retail 
 dealers, as defined in section 3244 of the Eevised Statutes, 
 nor, subject to regulations prescribed by the Commis- 
 sioner, with the approval of the Secretary, shall the tax 
 imposed by section 611 apply to wines produced for the 
 family use of the duly registered producer thereof and 
 '^ not sold or otherwise removed from the place of manu- 
 facture and not exceeding in any case two hundred gal- 
 lons per year. 
 
 Stamping and labeling wines. (T. D. 2667.) 
 
 Continuing bonds for wineries and store rooms. (T. D. 
 2516.) 
 
 Regulations as to production of wine in quantities not 
 exceeding one thousand gallons per year. (T. D. 2765.) 
 
 Bonds covering bonded wineries and bonded store rooms. 
 (T. D. 2525.) 
 
 Removal o{ Sec. 618. \Act of Fehruo/ry SL 1919 UO Stat., 1057).] 
 from bonded (a) ihat Under such regulations and upon the execution 
 premiees. ^^ ^^^^j^ noticcs, entries, bonds, and other security as the 
 
 Commissioner, with the approval of the Secretary, may 
 prescribe, domestic wines subject to the tax imposed by 
 section 611 may be removed from the winery where pro- 
 duced, free of tax, for storage on other bonded premises 
 or from such premises to other bonded premises (but not 
 
 Digitized by Microsoft® 
 
 family use. 
 
WINES AND. OTHER BEVERAGES. ■ 341 
 
 more than one such additional removal shall be allowed), 
 or for exportation from the United States or for use as 
 distilling material at any regularly registered distillery: 
 Provided^ however, That the distiller using any such wine 
 as material shall, subject to the provisions of section 
 3309 of the Revised Statutes, as amended, be held to pay 
 the tax on the product of such wines as will include both 
 the alcoholic strength therein produced by fermentation 
 and that obtained from the brandy or wine spirits added 
 to such wines at the time of fortification. 
 
 (b) Under regulations prescribed by the Commis- ,.,^!f{'.« "^'^'i ^= 
 sioner with the approval of the Secretary, it shall be law- rial.' '"^ "^ ^' 
 ful to produce grape wines on bonded winery premises 
 by the usual method, and to transport and use the same, 
 and like wines heretofore produced and now stored on 
 bonded winery premises, as distilling material for the 
 production of nonbeverage spirits in the production of 
 nonalcoholic wines, containing less than ^ of 1 per centum 
 of alcohol by volume, in any fruit brandy or industrial 
 distillery: Provided, That all alcoholic spirts so ob- 
 tained at any industrial distillery shall be denatured, and 
 all spirits so obtained at any fruit distillery shall be 
 removed and used only for nonbeverage purposes or for 
 denatviration. 
 
 Regulations relative to exportation of -wine free of tax. 
 (T. Ds. 2416, 2505.) 
 
 Shipment of tax-paid wines In tank cars. (T. D. 2474.) 
 
 Temporary storage of tax-paid wine for bottling or ship- 
 ment in separate room on bonded premises specially set 
 apart for that purpose. (T. D. 2470.) 
 
 Transfer of v.-ine to bonded manufacturing warehouse. 
 (T. D. 2738.) 
 
 Sec. 619. [Act of February U, 1919 {Ifi Stat., 1057).] tax°°on'ta°p"ort°d 
 That the collection of the tax on imported still wines, wines. 
 including vermuth, and sparkling wines, including cham- 
 pagne, and on imported liqueurs, cordials, and similar 
 compounds, may be made within the discretion of the 
 Commissioner, with the approval of the Secretary, by 
 - assessment instead of by stamps. 
 
 Sec. 620. [Act of February U, 1919 {^0 Stat., 1057).] ^J^^^y^^foj 
 That whoever evades or attempts to evade any tax im- a™ '?fqui?ement 
 posed by sections 611 to 615, both inclusive, or any re- "atii^Y. "^ ''^^' 
 quirement of sections 610 to 621, both inclusive, or regu- 
 lation issued pursuant thereto, or whoever, otherwise 
 than as provided in such sections, recovers or attempts 
 to recover any spirits from domestic or imported wine, 
 or whoever rectifies, mixes, or compounds with distilled 
 spirits any domestic wines, other than in the manufac- 
 ture of liqueurs, cordials, or similar compounds, shall, 
 on conviction, be punished for each such offense by a 
 fine of not exceeding $5,000, or imprisonment for not 
 more than five years, or both, and in addition thereto 
 by a penalty of double the tax evaded, or attempted to 
 
 Digitized by Microsoft® 
 
342 WINES AND OTHEE BEVEEAGES. 
 
 be evaded, to fee assessed, and colleeted m die same man- 
 ner as Itaxes are assessed aaaid eoliectsed, and all wines, 
 spirits, liqueurs, cordials, or similar «OHipoiinds as to 
 wliicli such violation occurs shall he forfeited to the 
 United States. But the provisions of this seetion and 
 the pixjvisions of section 32M of the Bevised Statutes, 
 as amended, relating to rectification, or other internal- 
 revenue laws of the United States, diall not be held 
 to apply to or prohibit ihe mixing or Mending of wines 
 subject to tax under the provisions of sections 611 to 
 61S, both inclusive, with each other or with other wines 
 for the sole purpose of perfecting such wines accord- 
 ing to commercial standards: Provided^ That nothing 
 herein contained shall be construed, as prohibitkig the 
 use of tax-paid g^rain or other ethyl alcohol in the fortifi- 
 cation of sweet wines as defined in section 610 ol this 
 Act and seetion 43 of the Act entitled "An Act to re- 
 duce the revenue and equalize duties on imports, and 
 for other purposes," approved October 1, 1890, as 
 amended hy this Act. 
 
 Blending or otherwise treating wines for purpose of 
 perfecting them according to commercial standards does 
 not eonstitiiute !rectificati«n. (T. D. 2470.) 
 
 lol^'fndTeS' Sec. 621. ^Aci of Feb7uary 2Ji, 1919 {Ifi StaL, 1057),] 
 That the Commissioner, by regulations to be approved 
 by the Secretary, may require the use at each fruit dis- 
 tillery of such spirit meters, and such locks and seals 
 to be affixed to fexmenters, tanks, or <5theT vessels and 
 to such pipe connections as may in his judgment be 
 As.5ignment of necessary or expedient, and is hereljy authorized to as- 
 
 gaugcrs, etc. ^-^^^ ^ ^^^ sucli distillery and to each winery where 
 wines are to be fortified such number of gangers or store- 
 keeper-gaugers in the capacity of gangers as may be 
 necessary for the proper supervision of the manufac- 
 ture of brandy or the makuig or fortifying of wines 
 Compensation g^feject to tax imposed by this seetion; and the com- 
 pensation of such officers shall not exceed $5 per diem 
 while so assigned, together with their actual and nec- 
 essary traveling exjjenses, and also a i^asonable allow- 
 ance for their board bills, to be fixed by the Commis- 
 sioner, with the approval of the Secretary, btit not to 
 exceed $2.50 per diem for such board bills. 
 Allowance for «:;;ec. 622. [Art of February ^i, 1919 {Ifi Stat., 10S7).] 
 
 of'^w'ine! ^ ^ That the Commissioner, with the approval of the Secre- 
 tary, is hereby authorized to make such allowances for 
 unavoidable loss of wines while on storage or during 
 cellar treatment as in his judgmient may be just and 
 proper. 
 
 AUowaHce for loss of wines at bonded wineries not to 
 exceed 8% of q«antity Of wines produced, and allowance at 
 bonded storerooms not to exceed 3|% of craanttty remwved 
 tax paid. <T, D. 2861.) 
 
 Digitized by Microsoft® 
 
WISTES .AND ©THEE BEVEKA'GES. 343 
 
 Sec. 62& {Act of Fehruai y ilt. 1919 {Ifi Stai,, 10o7).] 
 Tliat tkere shall .be levied, assessed, collected, and paid in 
 lieu of ihe taxes iia^esed lav seetions 313 and 315 of the 
 Eevenjie Act of 1917 — 
 
 ^a) Upon all beverages derived 'wholly or in part from Tax on soft 
 <5e.reils or S'Ubstitutes therefor, and containing lees tlian watos, ete!""'"' 
 one-half of one per cent.mn of alcohol, soM by the manu- 
 facturer, producer, or importei-, in bottles or other closed 
 containers, a tax equivalent to 15 per centum of th« price 
 for which so sold; and upon all unfei'mented grape juice, 
 ginger ale, root beer, sarsaparilla, pop, artificial mineral 
 waters (carbonated or not carbonated), other carbonated 
 ■watera or be^^rages, and other soft drinics, sold by the 
 manufacturer, producer, or importer, in bottles or other 
 closed containers, a tax -equivalent to 10 per centum of the 
 price for which so sold; and 
 
 (b) Upon .all natural mineral waters or table waters, 
 sold by the prodxicer, bottler, or importer thereof, in 
 bottles or other closed containers, at over 10 cents per 
 gallon, a tax of 2 cents per gallon. 
 
 Kegnlatl-ons 52, relating to tax ^n soft driiiks and other 
 
 beverages sold in bottles or other closed OQBtainers. (T. D. 
 
 2838.) 
 
 Article 6 of Regulations 52 amended. (T. Ds. 2893, 2908. ) 
 Article 11 of Eeg-uiations 52 supplemented. , <T. D. 2893.) 
 Manufacturers, producers, importers and vendors are 
 
 liable to tax upon all sales of taxable articles made to States 
 
 or political BBbdivisions thereof, (T. D. 2897.) 
 
 Liability of manufacturer to tax upon sales of bottled 
 
 fruit juices; ai-ticle 4 of Segulatioms No. .52 amended. 
 
 (T. D. 2932.) 
 
 Sec. 629. [Act of February 2i, 1919 {Jfi Stat., 1057).] Retur™ and 
 That each manufacturer, producer, bottler, or importer payment of tax. 
 of any of the articles enumerated in section 628 shall 
 make montMy returns under oath in duj)lacate and pay 
 the taxes imposed in respect to such articles by such sec- 
 tion to the collector for the district in wliich is located 
 the principal place of business, containing such informa- 
 tion necessary for the assessment of tiie tax, and at such 
 times and in such manner as the Commissioner, with the 
 approval of the Secretary, may by regulation prescribe. 
 
 The tax shall, without assessment by the Commissioner 
 or notice from the collector, be due and payable to the 
 collector at the time so fixed for filing the return. If Penalty for 
 the tax is not paid when due, there shall be added as ■™^p='y'"«" "« 
 part of the tax a penalty of 5 per centum, together with 
 interest at the rate of 1 per centum for each full month, 
 from the time when the tax became due. 
 
 Sec. 630. [Act of February %k, 1919 {Jfi Stat., 1067).] ^^,'1^ Z^jf^ 
 That on and after May 1, 1919, there shall be levied, soda'"^' fountains, 
 assessed, collected, and paid a tax of 1 cent for each 10 ^^''' 
 cents or fraction thereof of the amount paid to any per- 
 son conducting a soda fountain, ice-cream parlor, or 
 other similar place of business, for drinks commonly 
 Digitized by Microsoft® 
 
344 WINES AND OTHER BEVERAGES. 
 
 known as soft drinks, compounded or mixed at such 
 place of business, or for ice cream, ice-cream sodas, sun- 
 daes, or other similar articles of food or drink, when any 
 of the above are sold on or after such date for consump- 
 tion in or in proximity to such place of business. Such 
 tax shall be paid by the purchaser to the vendor at the 
 time of the sale and shall be collected, returned, and paid 
 to the United States by such vendor in the same manner 
 as provided in section 502. 
 
 Regulations 53, relating to tax on soft drinks, ice cream 
 and similar articles sold at soda fountains or similar places 
 of business. (T. D. 2839.) 
 
 Article 4 of Regulations .53 amended. (T. D. 2893.) 
 Article 6 of Regulations 53 supplemented. (T. D. 2893.) 
 Article 20, sales by post exchanges, municipalities, etc., 
 added to Regulations 53. (T. D. 2893.) 
 
 tax^™'' gTa pi Sec. 5. [Act of June 7 1906 {34 Stai., 215) .] That the 
 brandy acci- provisious of sections thirty-two hundred and twenty- 
 (leiitij destroye . ^^^ ^^^ thirty-two hundred and twenty-three of the Re- 
 vised Statutes of the United States, as amended by an 
 act approved March first, eighteen hundred and seventy- 
 nine, are hereby extended to grape brandy withdrawn for 
 use in the fortification of sweet wines, and which, prior 
 to such use, is accidentally destroyed by fire or other 
 casualty while stored in the fortifying room on the 
 winery premises. 
 
 This section is held as not repealed by the amendatory 
 act of October 22, 1914, and subsequent acts; other sec- 
 tions of the act of 1906 were superseded. 
 
 Instructions relative to fortification of pure sweet ^yine. 
 (Regulations 28, revised.) 
 
 General instructions relative to manufacture and sale 
 of wine, cordials, etc. (Regulations 28, supplement No. 2.) 
 
 Synopsis of decisions relating to wines, liqueurs, cordials, 
 etc., prior to October 30, 1916. (T. D. 2387.) 
 
 Grape juice treated with the fumes of sulphur not 
 eligible for fortification as pure sweet wine under tarifC 
 act of October 1, 1800, and amendments thereto. (T. D. 
 1314.) 
 
 Suspension of the provision of regulations proliibiting 
 use of fortified wines in the manufacture or preparation 
 of patent or proprietary medicines or compounds. (T. D. 
 1435.) 
 
 Digitized by Microsoft® 
 
Chapter Se\-en. 
 NATIONAL PROHIBITION. 
 
 Eigbteentli Amendment 1o the Constitution. 
 
 National rEOHiEiTiON Act. 
 
 Act October 28, 1919 (41 Stat, — ). 
 [Title I. To Provide for the Enforcement of War Prohibition.] 
 
 Sec. 
 1. 
 
 3. 
 
 Definitions. 
 
 Investigation and report of viola- 
 tions of law ; district attorney's 
 duty ; warrants ; committing 
 trial. 
 
 Place of sale as nuisance ; penalty ; 
 forfeiture of lease. 
 
 Sec. 
 
 4. Abatement and injunction ; juris- 
 
 diction ; temporary injunction ; 
 restraining order ; bond ; order of 
 court ; violation of Injunction ; 
 contempt proceedings. 
 
 5. Power to enforce act. 
 
 6. Partial invalidity of act. 
 
 7. Repeal of " War Prohibition Act ;" 
 
 annulment of orders or regula- 
 tions. 
 
 [Title II. Prohibition of Intoxicating Beverages.] 
 
 Sec. 
 1. 
 
 6. 
 
 10. 
 
 ai. 
 
 12. 
 13. 
 34. 
 
 15. 
 
 Definitions : . Commissioner acting 
 through agent. 
 
 Report of violations to United 
 States attorney ; warrants ; com- 
 mitting trial ; search warrants. 
 
 Manufacture, etc., of intoxicating 
 liquor after eighteenth amend- 
 ment to Constitution becomes 
 effective ; construction of act ; 
 nonbeverage liquor and sacra- 
 mental wine ; purchase and sale 
 of warehouse receipts. 
 
 Exception of stated articles; de- 
 natured alcohol or denatured 
 rum ; medicinal preparations ; 
 patented medicines ; toilet pre- 
 parations ; flavoring extracts ; 
 vinegar and cider ; procurement 
 of permits ; penalties ; notice by 
 Commissioner. 
 
 Analysis of articles ; notice to 
 manufacturer ; revocation of per- 
 mit to manufacture ; review. 
 
 Permit required ; exceptions ; ex- 
 tension of permit ; wines for sac- 
 ramental use. 
 
 Prescriptions. 
 
 Prescription blanks. 
 
 Permittee violating law ; citation ; 
 hearing, etc. 
 
 Records. 
 
 Copies of permits. 
 
 Labels. 
 
 Carriers' records. 
 
 Notice to carrier of contents of re- 
 ceptacle ; information on package. 
 
 Accepting package containing false 
 statement for shipment. 
 
 Digitized by 
 
 See. 
 
 16. Order to deliver to one not bona 
 
 flde consignee. 
 
 17. Advertisements ; price list ; foreign 
 
 newspapers. 
 
 18. Utensils, etc., for use in manufac- 
 
 ture of liquor. 
 
 19. Soliciting or receiving orders for 
 
 liquor. 
 
 20. Civil liability for injuries caused 
 
 by intoxicated person ; survival 
 of action. 
 
 21. Building, etc., declared to be pub- 
 
 lic nuisance ; penalty ; lien. 
 
 22. Action to enjoin nuisance. 
 
 23. Keeping or carrying around liquor ; 
 
 intent ; fees of officer for remov- 
 ing and selling property ; leased 
 premises. 
 
 24. Violation of injunction ; contempt 
 
 proceedings ; penalty. 
 
 25. Property rights ; search warrant ; 
 
 " private dwelling " defined ; re- 
 plevin of property. 
 
 26. Seizure of liquor being transported ; 
 
 liens against seized property. 
 
 27. Delivery of liquor to department 
 
 or agency of United States. 
 
 28. Powers and protection of commis- 
 
 sioner and others in enforcement 
 of act. 
 
 29. Penalty for manufacturing or sell- 
 
 ing liquor ; penalty for violating 
 permit. 
 
 30. Attendance and testimony of wit- 
 
 nesses ; perjury. 
 
 31. Place of sale where delivery made 
 
 by carrier. 
 Microsoft® 345 
 
346 
 
 KATIOSTAL PEOHIBITIOlSr. 
 
 Sec. 
 32. 
 
 33. 
 
 34. 
 35. 
 
 Joinder of offenses in indictment, 
 etc. ; name of purchaser, etc. 
 
 Possession of liquor as prima facie 
 evidence of violation of act ; re- 
 port of possession of liquor ; pos- 
 session in private dwelling. 
 
 Inspection of records and reports; 
 copies of records. 
 
 Repeal of inconsistent laws ; tax 
 on illegally-manufactured liquor ; 
 compromises. 
 
 Sec. 
 
 36. Partial invalidity of act. 
 
 37. Storage of liquor ; beverages con- 
 
 tainlSg less than one-half of 1 
 per cent of alcohol ; fortified 
 wines ; burden of proof ; expense 
 of analysis. 
 
 38. ■ Employment of assistants, clerks, 
 
 etc. ; purchase of office supplies ; 
 preference to soldiers and sail- 
 ors ; appropriation. 
 
 39. Summons. 
 
 [Title III. Industrial Alcohol.] 
 
 See. 
 
 1. Definitions. 
 
 2. Permits ; bonds. 
 
 3. Warehouses; entries and with- 
 
 drawals. 
 
 4. Transfers. 
 
 5. Time tax attaches; joint and sev- 
 
 eral liability for tax ; lien of tax. 
 : 6. Withdrawal from bonded ware- 
 houses ; redistillation, etc. 
 
 7. Operation of distiUery, etc., as in- 
 
 dustrial alcohol plant. 
 
 8. Manner of producing alcohol. 
 
 9. Exemption of plants and ware- 
 
 houses from certain sections of 
 Revised Statutes ; regulations. 
 10. Establishment of plant; sale tax 
 free ; distilled vinegar. 
 
 Sec. 
 
 11. Withdrawal; spirits of less proof 
 
 than 160; withdrawal by United 
 States, States, etc. ; permits. 
 
 12. Additional penalties. 
 
 13. Regulations. 
 
 14. Refunds in case of losses. 
 
 15. Penalties. 
 
 16. Collection of tax. 
 
 17. Release of seized property. 
 
 18. Administrative provisions of inter- 
 
 Bal-revenue law applicable. 
 
 19. Repeal of laws. 
 
 20. Canal Zone; fine and imprison- 
 
 ment. 
 
 21. Effective date of provisions ; pas- 
 
 sage over l?residenfs veto. 
 
 AilENDilENT TO CONSTITUTION. 
 
 purposes. 
 
 Enforcement. 
 
 ARTICLE 18. 
 
 intraSing°iiq* Sectioii 1. After one year from the ratification of this 
 uora tor beverage article the manufacture, sale, or transportation of intoxi- 
 """ ' eating liquors within, the importation thereof into, or the 
 
 exportation thereof from the United States and all terri- 
 tory subject to the jurisdiction thereof for beverage pur- 
 poses is hereby prohibited. 
 
 Sec. 2. The Congress and the several States shall have 
 concurrent power to enforce this article by appropriate 
 legislation. 
 TvkMn' 'seven Sec 3. This article shall be inoperative unless it shall 
 years required. }iave been ratified as an amendment to the Constitution 
 by the legislatures of the several States, as provided in 
 the Constitution, within seven years from the date of the 
 submission hereof to the States by the Congi'ess. 
 
 Act of November 21, 1918 (40 Stat., 1045), was not 
 abrogated or repealed by the eighteenth amendment to the 
 Constitution. (Hamilton v. Kentucky Distilleries & Ware- 
 house Oo. and Dryfoos et al. v. Edwards, decided by Su- 
 preme Coart, December 15, 1919.) 
 
 Nationai. Pkohibitiox Act. 
 
 Short title. Be it enacted. That the short title of this Act shall be 
 
 the " ^^fic(yf^]tS^Q^>%m)M® 
 
TITLE I. 
 
 TD PROVIDE FOE THE ENrOECEMEXT DE WAK PROHIBITION. 
 
 Section 1. {Act Oetober28, 1919 {J^l Stat. ).J tion^Acf""''!: 
 
 Tlie term " War ProTiibitioa Act " used in this Act shall fl"ed- 
 mean the proTisions of any Act or Acts prohibiting tlie 
 sale and manufacture of intoxicating liquors until the 
 •conclusion of the present war and thereafter until the ter- 
 iHiination of demobilization, the date of which shall be 
 determined and proclaimed by the President of the ^^ "o^hlr' into™; 
 United States. The words "beer, wine, or other intoxi- mating wm or 
 eating malt or vinous liquors ^' in the War Prohibition defliS. '"^^ 
 Act sliall be hereaftei' construed to mean any such bever- 
 ages wliich contain one-half of 1 per centum or more of 
 alcohol Jby volmne: Provided, That the foregoing defini- 
 tion shall not extend to dealcoholized wine nor to any 
 beverage or liquid produced by the process by which beei', 
 ale, porter or wine is produced, if it contains less than 
 one-half of 1 per centum of alcoliol by volume, and is 
 made as prescribed in section 37 of Title II of tliis Act, 
 and is otherwise denominated than as beer, ale, or porter, 
 and is contained and sold in, or from, such sealed iind 
 labeled bottles, casks, or containers as the commissionei' 
 ma3' Tiy regulation prescribe. 
 
 Sec. 2. Tlie Commissioner of Internal ^Revenue, his as- and°™repfrt'"'o" 
 sistajits, agents, and inspectors, shall investigate and re- violations of law. 
 port violations of the War Proliibition Act to the Umted 
 States a/ttorney for the district in which committed, who ^^'^.g^duf ^^^''' 
 shall be charged with the duty of prosecuting, subject to 
 the direction of the Attorney General, the offenders as in 
 the case of other offenses against laws of the United 
 States ; and such Commissioner of Internal Bevenue, liis 
 assistants, agents, and inspectors may swear out warrants miJt^'j "trial"""' ' 
 before United States commissioners or other officers or 
 courts autliorized to issue the same for the apprehension 
 of such offenders, and may, subject to tlie contix)! of the 
 said United States attorney, coaduct the prosecution at 
 the committing trial for the purpose of having the of- 
 fenders held for the action of a grand jury. 
 
 Sec. 3. Any room, house, building, boat, vehicle, struc- aa^iluSancl ^*^° 
 ture, or place of any kind wliere intoxicating liqpior is 
 sold, manufactured, kept for sale, or bartered in violation 
 of the War Prohibition Act, and all intoxicating liquor 
 and all property kept and used in maintaining such a 
 place, is hereby declared to be a public and common nui- 
 sance, and any person who maintains or assists in main- 
 taining such public and common nuisance shall be guilty 
 of a misdemeanor, and upon conviction thereof sliall be 
 Bned not less than $100 nor more than $1,000, or be im- ^^™"^- 
 prisoned for not less tlian thirty days or moi e .than one 
 year, or both. If a person lias knowledge that his prop- 
 erty is occupied or used in violation of the pnDvisions of 
 the War Prohibition Act and suffers &£> same to be so 
 used, such property shall ^j^fi^^c^^^/^^^^j^, and may 
 be sold to pay, all fines ana costs assessed against the oc- 
 
348 STATIONAL PROHIBITION. 
 
 cupant of such building or property for any violation of 
 the War Prohibition Act occurring after the passage 
 hereof, which said lien shall attach from the time of the 
 filing of notice of the commencement of the suit in the 
 office Avhere the records of the transfer of real estate are 
 kept ; and any such lien may be established and enforced 
 by legal action instituted for that purpose in any court 
 Forfeiture o i having jurisdiction. Any violation of this title upon any 
 
 ^'**'*' leased premises by the lessee or occupant thereof shall, 
 
 at the option of the lessor, work a forefeiture of the lease. 
 
 injunfti™"' *"'' Sec. 4. The United States attorney for the district 
 ■where such nuisance as is defined in this Act exists, or 
 any officer designated by him or the Attorney General of 
 the United States, may prosecute a suit in equity in the 
 name of the United States to abate and enjoin the same. 
 Actions in equity to enjoin and abate such nuisances may 
 be brought in any court having jurisdiction to hear and 
 Jurisdiction, determine equity causes. The jurisdiction of the courts 
 of the United States under this section shall be concurrent 
 Avith that of the courts of the several States. 
 
 junetTo^n""'^^ "' ^^ ^^ ^® made to appear by affidavit, or other evidence 
 under oath, to the satisfaction of the court, or judge in 
 vacation, that the nuisance complained of exists, a tem- 
 porary writ of injunction shall forthwith issue restrain- 
 ing the defendant or defendants from conducting or per- 
 mitting the continuance of such nuisance until the con- 
 
 ^^Restraining or- elnsion of the trial. Where a temporary injunction is 
 prayed for, the court may issue an order restraining the 
 defendants and all other persons from removing or in 
 any^ way interfering with the liquor or fixtures, or other 
 things used in connection with the violation constituting 
 Bond. ^]^Q nuisance. Ko bond shall be required as a condition 
 
 for making any order or issuing any writ of injunction 
 Order of court, ^^ndcr this Act. If the court shall find the property in- 
 volved was being unlawfully iised as aforesaid at or 
 about the time alleged in the petition, the court shall 
 order that no liquors shall be manufactured, sold, bar- 
 tered, or stored in such room, house, building, boat, vehi- 
 cle, structure, or places of any kind, for a period of not 
 exceeding one year, or during the war and the period of 
 demobilization. Whenever an action to enjoin a nuisance 
 shall have been brought pursuant to the provisions of this 
 Act, if the owner, lessee, tenant, or occupant appears and 
 pays all costs of the proceedings and files a bond, with 
 sureties to be approved by the clerk of the court in which 
 the action is brought, in the liquidated sum of not less 
 than $500 nor more than $1,000, conditioned that he will 
 immediately abate said nuisance and prevent the same 
 from being established or kept therein a period of one 
 year thereafter, or during the war and period of de- 
 mobilization, the court, or in vacation the judge, may, 
 if satisfied of his good faith, direct by appropriate order 
 that the nronerty,, if .already, closed or held under the 
 order of mmMiPM'^^^^ to said owner, and said 
 
NATIONAI, PROHIBITIOK. 349 
 
 order of abatement canceled, so far as the same may re- 
 late to said property ; or if said bond be given and costs 
 therein paid before judgment on an order of abatement, 
 the action shall be thereby abated as to said room, house, 
 building, boat, vehicle, structure, or place only. The 
 I'elease of the property under the provisions of this sec- 
 tion shall not release it from any judgment, lien, penalty, 
 or liability to which it maj be subject by law. 
 
 In the case of the violation of any injunction, tem- injuJicuon." " ' 
 porary or permanent, granted pursuant to the provisions 
 of this Title, the court, or in vacation a judge thereof, 
 may summarily try and punish the defendant. The pro- ^gg*^™*™!"* p"' 
 ceedings for punishment for contempt shall be com- "^^^ '"^^' 
 menced by filing with the clerk of the court from which 
 such injuction issued information under oath setting out 
 the alleged facts constituting the violation, whereupon 
 the court or judge shall forthwith cause a warrant to 
 issue under which the defendant shall be arrested. The 
 trial may be had upon affidavits, or either party may de- 
 mand the production and oral examination of the wit- 
 nesses. Any person found guilty of contempt under the 
 provisions of this section shall be punished by a fine of 
 not less than $500 nor more than $1,000, or by imprison- 
 ment of not less than thirty days nor more than twelve 
 months, or by both fine and imprisonment. 
 
 Sec. 5. The Commissioner of Internal Eevenue, his as- lorceTct. '" *"" 
 sistantSj agents, and inspectors, and all other officers of 
 the United States whose duty it is to enforce criminal 
 laws, shall have all the power for the enforcement of the 
 War Prohibition Act or any provisions thereof which 
 is conferred by law for the enforcement of existing laws 
 relating to the manufacture or sale of intoxicating liquors 
 under the laws of the United States. 
 
 Sec. 6. If any section or provision of this Act shall be ny^'oi^lSJ^^'^' 
 held to be invalid, it is hereby provided that all other 
 provisions of this Act which are not expressly held to be 
 invalid shall continue in full force and effect. 
 
 Sec. 7. None of the provisions of this Act shall be con- « ^^^ ^p^ohigj! 
 strued to repeal any of the provisions of the " War Pro- tion Act. " 
 hibition Act," or to limit or annul any order or regula- 
 tion prohibiting the manufacture, sale, or disposition of 
 intoxicating liquors within certain prescribed zones or 0,^™"^™™'^^,^^ 
 districts, nor shall the provisions of this Act be construed wons. 
 to prohibit the use of the power of the military or naval 
 authorities to enforce the regulations of the President or 
 Secretary of War or Navy issued in pursuance of law, 
 prohibiting the manufacture, use, possession, sale, _ or 
 other disposition of intoxicating liquors during the period 
 of the war and demobilization thereafter. 
 
 Sales of distilled spirits and wines for medicinal, etc., 
 purposes. (T. D. 2959.) 
 
 Digitized by Microsoft® 
 
360 IfATIONAL PEOHIBITION. 
 
 TITLE II. 
 
 PROHIBITION" or INTOXICATIIirG BE\'EEAGES. 
 
 Deflnitiom. Sec. 1. When used ia Title II and Title III of this Act 
 
 (1) The word "liquor" or the phrase "intoxicating 
 liquor" shall be construed to include alcohol, brandy, 
 whisky, rum, gin; beer, ale, porter, and wine, and in addi- 
 tion thereto any spirituous, vinous, malt, or fermented 
 liquor, liquids, and compounds, whether medicated, pro- 
 prietary, patented, or not, and by whatever name called, 
 containing one-half of 1 per centum or more alcohol by 
 volume which are fit for use for beverage purposes : Pro- 
 vided^ That the foregoing definition shall not extend to 
 dealcoholized wine nor to any beverage or liquid produced 
 by the process by whi<di beer, ale, porter or wine is pro- 
 duced, if it contains less than one-half of 1 per centum 
 of alcohol by volume, and is made as prescribed in section 
 37 of this title, and is otherwise denominated than as 
 beer, ale, or porter, and is contained and sol4 in, or from, 
 such sealed and labeled bottles, casks, or containers as the 
 commissioner may by regulation prescribe. '■ 
 
 (2 ) The word " person " shall mean and include natural 
 persons, associations, copartnerships, and corporations. 
 
 (3) The word "commissioner" shall mean Commis- 
 sioner of Internal Eevenue. 
 
 / (4) The term " application " shall mean a formal writ- 
 
 ten request supported by a verified statement of facts 
 showing that the commissioner may grant the request. 
 
 (5) The term "permit" shall mean a formal written 
 authorization by the commissioner setting forth specifi- 
 cally therein the things that are authorized. ^ 
 
 (6) The term "bond" shall mean an obligation au- 
 thorized or required by or under this Act or any regula- 
 tion, executed in such form and for such a penal sura as 
 may be required by a court, the commissioner or pre- 
 scribed by regulation. 
 
 (7) The term " regulation " shall mean any regulation 
 prescribed by the commissioner with the approval of the 
 Secretary of the Treasury for carrying out the provisions 
 of this Act, and the commissioner is authorized to make 
 such regulations. 
 
 Commissioner Any act authorized to be done by the commissioner 
 acting t oog ^^^y ^^ performed by any assistant or agent designated 
 by him for that purpose. Hecords required to be filed 
 with the commissioner may be filed with an assistant 
 commissioner or other person designated by the com- 
 missioner to receive such records. 
 Report of yio- Sec. 2. The Commissioner of Internal Revenue, his as- 
 stot"™ attorney* sistants, ageuts, and inspectors shall investigate and re- 
 port violations of this Act to the United States attorney 
 for the district in which committed, who is hereby 
 charged with the duty of prosecuting the offenders, sub- 
 ject to the direction of the Attorney General, as in the 
 case of odjgiif;3rffai»^<*?;S®®fflf® the laws of the United 
 States ; and such Commissioner of Internal Eevenue, his 
 
JTATIOITJJL, PKOHIBITIOK. 351 
 
 aissistisucits, agents, axud inspectors Jiiay swear out warrants wan-ants. 
 
 before United States ■eommissioners or other officers or 
 
 courts anthorized to issue tlie same for the apprehension 
 
 of such offenders, and may, subject to tlie control of the 
 
 said United States attorney, conduct the prosecution at 
 
 the committing trial for the piirpose of having the of- .commuting 
 
 f«nders hid'd for the action of a grand jury. Section 1014 
 
 of the B<evased Statutes of the United States is hereby ' 
 
 made applicable in the enfoi?oement of this A-ct. Officers 
 
 Huentioned in said section 1014 are authorized to issue ^^^^l^ "■ " ^ *""'" 
 
 search warrants under the limitations provided in Title 
 
 XI of the Act approved Jane 15, 1917 (Fortieth Stat- see p. 602. 
 
 utes at Large, page 217, et seq.). 
 
 Sec. S. No person shall on or after the date when tlie etc*!^""* tatoxi- 
 eigliteentSi amendjnent to the Cqnstitution of the United eating uquor 
 Ste,tes goes into effect, manufacture, sell, barter, trans- amlnciiSS*™"t'o 
 port, import, export, deliver, furnish or possess any in- Mme^'eflective'!'^ 
 toxicating liquor except as authorized in this Act, and ail 
 the provisions of this Act shall be liberally construed to construction of 
 the end that the use of intoxicating liquor as a beverage 
 may be prevented. 
 
 Tile ei^rtBentii amai'dim«nt to the Constitution became 
 effective at 12.01 a. m., January 17, 1920. 
 
 Liquor for nonbeverage purposes and wine for sacra- 'jiqyQ°"Ji'^/|J'^^|^ 
 Bienfcal purposes may be manufactured, purchased, sold, mental wine, 
 bartered, transported, imported, exported, delivered, fui- 
 mished and possessed, but only as herein provided, and 
 the commissioner may, upon application, issue permits 
 thfijpefor: Provided^ That nothing in this Act shall pro- Purchase and 
 hibit the purchase and sale' of warehouse receipts cover- house "eceip™"^*^ 
 img distilled spirits on deposit in Government bonded 
 warehouses, and no special tax liability shall attach to 
 the business of purchasing and selling such warehouse 
 receipts. 
 
 Sec. 4. The articles enumerated h\ this section shall ^ Exception o 1 
 
 , p. ^ • 1 jt 1 ^ -i T_c stated articles. 
 
 not, alter having been manuractured and prepared tor 
 the marfeet, be subject to the provisions of this A<5t if they 
 correspond with the following descriptions and limita- 
 tions, namely: 
 
 (a) Denatuired alcohol or denatured rum produced and eo£r''or™'rieM- 
 used as provided by laws and regulations now or h«re- tured rum. 
 after in force. 
 
 {b) Medicinal preparations manufactured in accord- Medicinal 
 
 •IP 1 ■111 _Li TT 'i 1 dj_ j_ preparations. 
 
 ance with formulas prescribed by the United btates 
 Pharniacopceia, National Formulary or the American In- 
 stitute of Homeopathy tliat are unfit for use for beverage 
 purposes. 
 
 (c) Patented, patent, and proprietary medicines that ^j^^f ''"'^'^ ™'^'^" 
 are unfit for use for beverage purposes. 
 
 (d) Toildi, medicinal, and antiseptic preparations and ^^^"^^^^ prepara- 
 solutions that are unfit for u,se for teverage purposes. 
 
 (e) Mavoring extracts and sirups that are unfit for use j^,^'^™™^ ''''' 
 as a beverage, or for intoxicating beverage purposes. 
 
 (f) Vinegar and preg^afecfei^B^/asisilsa;/?® cidln"^" ""'' 
 
352 NATIONAL PEOHIBITION, 
 
 pernor™''"* °' -^ person who manufacturers any of the articles men- 
 tioned in this section may purchase and possess liquor 
 for that purpose, but he shall secure permits to manufac- 
 ture such articles and to purchase such liquor, give the 
 bonds, keep the records, and make the reports specified 
 in this Act and as directed by the commissioner. No 
 such manufacurer shall sell, use, or dispose of any liquor 
 otherwise than as an ingredient of the articles authorized 
 to be manufactured therefrom. No more alcohol shall be 
 used in the manufacture of any extract, sirup, or the 
 articles named in paragraphs b, c, and d of this section 
 which may be used for beverage purposes than the quan- 
 tity necessary for extraction or solution of the elements 
 contained therein and for the preservation of the article. 
 Ptraities. -^^7 persou who shall knowingly sell any of the arti- 
 
 cles mentioned in paragraphs a, b, c, and d of this sec- 
 tion for beverage purposes, or any extract or sirup for 
 intoxicating beverage purposes, or who shall sell any of 
 the same under circumstances from which the seller maght 
 reasonably deduce the intention of the purchaser to use 
 them for such purposes, or shall sell any beverage con- 
 taining one-half of 1 per centum or more of alcohol by 
 volume in which any extract, sirvip, or other article is 
 used as an ingredient, shall be subject to the penalties 
 provided in section 29 of this Title. If the commis- 
 sioner shall find, after notice and hearing as provided for 
 in section 6 of this Title, that any person has sold any 
 flavoring extract, sirup, or beverage in violation of this 
 paragraph, he shall notify such person, and any known 
 principal for whom the sale was made, to desist from 
 selling such article; and it shall thereupon be unlawful 
 for a period of one year thereafter for any person so 
 notified to sell any such extract', sirup, or beverage with- 
 out making an application for, giving a bond, and ob- 
 taining a permit so to do, which permit may be issued 
 upon such conditions as the commissioner may deem nec- 
 essary to prevent such illegal sales, and in addition the 
 commissioner shall require a record and report of sales. 
 Aiaijsis of ar- Sec. 5. Whenever the commissioner has reason to be- 
 
 tide". lieve that any article mentioned in section 4 does not 
 
 correspond with the descriptions and limitations therein 
 provided, he shall cause an analysis of said article to be 
 made, and if, upon such analysis, the commissioner shall 
 find that said article does not so correspond, he shall give 
 J) 1 i c e to not less than fifteen days' notice in writing to the person 
 
 Tixanufactmer. ^}iq jg ^j^g manufacturer thereof to show cause why said 
 article should not be dealt with as an intoxicating liquor, 
 such notice to be served personally or by registered mail, 
 as the commissioner may determine, and shall specify 
 the time when, the place where, and the name of the agent 
 or official before whom such person is required to appear. 
 
 j.e™™?o*'manS- ^^ ^^^ manufacturer of said article fails to show to the 
 
 fecturp. satisfaction, oi. the, commissioner that the article corre- 
 
 sponds toWm<fiX0mmW limitations provided in 
 
 Notice by coin- 
 mis ^iol.■e^. 
 
NATIONAL PEOHIBITION. 353 
 
 section 4 of this Title, his permit to manufacture and sell 
 such article shall be revoked. The manufacturer may 
 by appropriate proceeding in a court of equity have the 
 action of the commissioner reviewed, and the court may ^^^'™- 
 . affirm, modify, or reverse the finding of the commissioner 
 as the facts and law of the case may warrant, and during 
 the pendency of such proceedings may restrain the manu- 
 facture, sale, or other disposition of such article. 
 
 Sec. 6. Xo one shall manvif acture, sell, purchase, trans- ^Xed; 1 x c e'^ 
 port, or prescribe any liquor without first obtaining a tions. 
 permit from the commissioner so to do, except that a per- 
 son may, without a permit, purchase and use liquor for 
 medicinal purposes when prescribed by a physician as 
 herein provided, and except that any person who in the 
 opinion of the commissioner is conducting a bona fide 
 hospital or sanatorium engaged in the treatment of per- 
 sons suffering from alcoholism, may, under such rules, 
 regulations, and conditions as the commissioner shall pre- 
 scribe, purchase and use, in accordance with the methods 
 in use in such institution, liquor, to be administered to the 
 patients of such institution under the direction of a duly 
 qualified physician employed by such institution. 
 
 All permits to manufacture, prescribe, sell, or trans- 
 port liquor, may be issued for one year, and shall expire 
 on the 31st day of .December next succeeding the issi^ance 
 thereof: Provided, That the commissioner may without 
 formal application or new bond extend any permit grant- pemit,' 
 ed under this Act or laws now in force after August 31 
 in any year to December 31 of the succeeding year : Pro- 
 vided further, That permits to purchase liquor for the 
 purpose of manufacturing or selling as provided in this 
 Act shall not be in force to exceed ninety days from the 
 day of issuance. A permit to purchase liquor for any 
 other purpose shall not be in force to exceed thirty days. 
 Permits to purchase liquor shall specify the quantityand 
 kind to be purchased and the purpose for which it is to 
 be used. No permit shall be issued to any person who 
 within one year prior to the application therefor or 
 issuance thereof shall have violated the terms of any per- 
 mit issued under this Title or any law of the United 
 States or of any State regulating traffic in liquor. No 
 permit shall be issued to anyone to sell liquor at retail, 
 unless the sale is to be made through a pharmacist desig- 
 nated in the permit and duly licensed under the laws of 
 his State to compound and dispense medicine prescribed 
 by a duly licensed physician. No one shall be given a 
 permit to prescribe liquor unless he is a physician duly 
 licensed to practice medicine and actively engaged in the 
 practice of such profession. Every permit shall be m 
 writing, dated when issued, and signed by_ the commis- 
 sioner or his authorized agent. It shall give the name 
 and address of the person to whom it is issued and shall 
 designate and limit the acts that are permitted and the 
 time when and place whe^S/&gB4^Mi6f ^^a^^rformed. 
 
 140184°— 20— 23 
 
 Kxtension o t 
 
354 NATIONAL PKOHIBITIOH. 
 
 No permit shall be issued until a verified, written appli- 
 cation shall have been made therefor, setting forth the 
 qualification of the applicant and the purpose for which 
 the liquor is to be used. 
 
 The commissioner may prescribe the form of all per- 
 mits and applications and the facts to be set forth therein. 
 Before any permit is granted the commissioner may re- 
 quire a bond in such form and amount as he may prescribe 
 to insure compliance with the terms of the permit and 
 the provisions of this title. In the event of the refusal 
 by the commissioner of any application for a permit, the 
 applicant may have a review of his decision before a 
 court of equity in the manner provided in section 5 
 
 Y^i Tigg for s&c* 
 
 ramentai use. Nothing in this title shall be held to apply to the man- 
 
 ufacture, sale, transportation, importation, possession, or 
 distribution of wine for sacramental purposes, or like re- 
 ligious rites, except section 6 (save as the same requires 
 a permit to purchase) and section 10 hereof, and the pro- 
 visions of this Act prescribing penalties for the viola- 
 tion of either of said sections. No person to whom a per- 
 mit may be issued to manufacture, transport, import, or 
 sell wines for sacramental purposes or like religious rites 
 shall sell, barter, exchange, or furni&h any such to any 
 person not a rabbi, minister of the gospel, priest, or an 
 officer duly authorized for the purpose by any church or 
 congregation, nor to any such except upon an application 
 duly subscribed by him, which application, authenticated 
 as regulations may prescribe, shall be filed and preserved 
 by the seller. The head of any conference or diocese or 
 other ecclesiastical jurisdiction may designate any rabbi, 
 minister, or priest to supervise the manufacture of wine 
 to be used for the purposes and rites in this section men- 
 tioned, and the person so designated may, in the dis- 
 cretion of the commissioner, be granted a permit to super- 
 vise such manufacture. 
 
 Procedure in securing permits. (T. Ds. 2940, 2946.) 
 prescriptiom. g^^_ 7_ jf^ pj^g ^^j(. ^ physician holding a permit to 
 prescribe liquor shall issue any prescription for liquor. 
 And no physician shall prescribe liquor unless after care- 
 ful physical examination of the person for whose use 
 such prescription is sought, or if such examination is 
 found impracticable, then upon the best information ob- 
 tainable, lie in good faith believes that the use of such 
 liquor as a medicine by such person is necessary and will 
 afford relief to him from some known ailment. Not 
 more than a pint of spirituous liquor to be taken inter- 
 nally shall be prescribed for use by the same person 
 witliin any period of ten days and no prescription shall 
 be filled more than once. Any pharmacist filling a pre- 
 scription shall at the time indorse upon it over his own 
 signature the word "canceled," together with the date 
 when the fij^MSJaB(*fcy MiraaffliS^and then make the same 
 
NATIONAL PEOHIBITION. 355 
 
 a part of the record that he is required to keep as herein 
 provided. 
 
 Every physician who issues a prescription for liquor 
 shall keep a record, alphabetically arranged in a book 
 prescribed by the commissioner, which shall show the 
 date of issue, amount prescribed, to whom issued, the pur- 
 pose or ailment for which it is to be used and directions 
 for use, stating the amount and f requencj'^ of the dose. 
 
 Sec. 8. The commissioner shall cause to be printed prescription 
 blanks for the prescriptions herein required, and he shall Wanks. 
 furnish the same, free of cost, to physicians holding per- 
 mits to prescribe. The prescription blanks shall be 
 printed in book form and shall be numbered consecutively 
 from one to one hundred, and each book shall be given 
 a number, and the stubs in each book shall carry the same 
 numbers as and be copies of the prescriptions. The books 
 containing such stubs shall be returned to the commis- 
 sioner when the prescription blanks have been used, or 
 sooner, if directed by the commissioner. All unused, 
 mutilated, or defaced blanks shall be returned with the 
 book. No physician shall prescribe and no pharmacist 
 shall fill any prescription for liquor except on blanks so 
 provided, except in cases of emergency, in which event a 
 record and report shall be made and kept as in other 
 cases. 
 
 Sec. 9. If at any time there shall be filed with the com- permittee Tio- 
 missioner a complaint under oath setting forth facts bating law. 
 showing, or if the commissioner -has reason to believe, 
 that any person who has a permit is not in good faith 
 conforming to the provisions of this Act, or has violated 
 the laws of any State relating to intoxicating liquor, the 
 commissioner or his agent shall immediately issue an 
 order citing such person to appear before him on a day citation; 
 named not more than thirty and not less than fifteen days ''^"'°^' ^^ 
 from the date of service upon such permittee of a copy 
 of the citation, which citation shall be accompanied by a 
 copy of such complaint, or in the event that the proceed- 
 ings be initiated by the commissioner with a statement of 
 the facts constituting the violation charged, at which time 
 a hearing shall be had unless continued for cause. Such 
 hearings shall be held within the judicial district and 
 within fifty miles of the place where the offense is alleged 
 to have occurred, unless the parties agree on another 
 place. If it be found that such person has been guilty of 
 willfully violating any such laws, as charged, or has not 
 in good faith conformed to the provisions of this Act, 
 such permit shall be revoked, and no permit shall be 
 granted to such person within one year thereafter. 
 Should the permit be revoked by th6_ commissioner, the 
 permittee may have a review of his decision before a court 
 of equity in the manner provided in section 5 hereof. 
 During the pendency of such action such permit shall be 
 temporarily revoked. Digitized by Microsoft® 
 
356 
 
 NATIONAL PROHIBITION. 
 
 Copie= 
 mite. 
 
 Labels. 
 
 Records. gj,^;^ j^Q. No person shall manufacture, purchase for 
 
 sale, sell, or transport any liquor without making at the 
 time a permanent record thereof showing in detail the 
 amount and kind of liquor manufactured, purchased, 
 sold, or transported, together with the names and ad- 
 dresses of the persons to whom sold, in case of sale, and 
 the consignor and consignee in case of transportation, and 
 the time and place of such manufacture, sale, or trans- 
 portation. The commissioner may prescribe the form 
 of such record, which shall at all times be open to inspec- 
 tion as in this Act provided. 
 of per- Sec. 11. All manufacturers and wholesale or retail 
 druggists shall keep as a part of the records required of 
 them a copy of all permits to purchase on which a sale 
 of any liquor is made, and no manufacturer or wholesale 
 druggist shall sell or otherwise dispose of any liquor ex- 
 cept at wholesale and only to persons haA'ing permits to 
 purchase in such quantities. 
 
 Sec. 12. All persons manufacturing liquor for sale 
 under the provisions of this title shall securely and per- 
 manently attach to every container thereof, as the same 
 is manufactured, a label stating name of manufacturer, 
 kind and quantity of liquor contained therein, and the 
 date of its manufacture, together with the number of the 
 permit authorizing the manufacture thereof ; and all per- 
 sons possessing such liquor in wholesale quantities shall 
 securely keep and maintain such label thereon; and all 
 persons selling at wholesale shall attach to every package 
 of liquor, when sold, a label setting forth the kind and 
 quantity of liquor contained therein, by whom manufac- 
 tured, the date of sale, and the person to whom sold; 
 which label shall likewise be kept and maintained there- 
 on until the liquor is used for the purpose for which such 
 sale was authorized. 
 
 Sec. 13. It shall be the duty of every carrier to make 
 a record at the place of shipment of the receipt of any 
 liquor transported, and he shall deliver liquor only to 
 persons who present to the carrier a verified copy of a 
 permit to purchase which shall be made a part of the 
 carrier's permanent record at the office from which de- 
 livery is made. 
 
 The agent of the common carrier is hereby authorized 
 to administer the oath to the consignee in verification of 
 the copy of the permit presented, who, if not personally 
 known to the agent, shall be identified before the delivery 
 of the liquor to him. The name and address of the per- 
 son identifying the consignee shall be included in the 
 record. 
 
 Sec. 14. It shall be unlawful for a person to use or in- 
 duce any carrier, or any agent or employee thereof, to 
 carry or ship any package or receptacle containing liquor 
 without notifying the carrier of the true nature and char- 
 acter of t2}^j?fea9ij^fW;cj^§o/?®rier shall transport nor 
 shall any person receive liquor from a carrier unless there 
 
 Carriers' 
 ords. 
 
 Koti.ce to ear- 
 ner of contents 
 of receptacle. 
 
lsrATION.VL PROHIBITION. 357 
 
 appears on the outside of the package containing such 
 liqvior the following information: 
 
 Name and address of the consignor or seller, name and packl°geT*'°° '"' 
 address of the consignee, kind and quantity of liquor 
 contained therein, and number' of the permit to purchase 
 or ship the same, together with the name and address of 
 the person using the permit. 
 
 Sec. 15. It shall be unlawful for any consignee to ac- ^ g T^^conteinfng 
 cept or receive any package containing^ any liquor upon \^^l^^ ment"™' 
 which appears a statement known to him to be false, or 
 for any carrier or other person to consign, ship, trans- 
 port, or deliver any such package, knowing such state- 
 ment to be false. 
 
 Sec. 16. It shall be unlawful to give to any carrier or uvcr'^to o°e not 
 any officer, agent, or person acting or assuming to act ^j°™ ^ ^^^ ™"- 
 for such carrier an order requiring the delivery to any 
 person of any liquor or package containing liquor con- 
 signed to, or purporting or claimed to be consigned to a 
 person, when the purpose of the order is to enable any 
 person not an actual bona fide consignee to obtain such 
 liquor. 
 
 Sec. 17. It shall be unlawful to advertise anywhere, or Advertisements.^ 
 by any means or method, liquor, or the manufacture, 
 sale, keeping for sale or furnishing of the same, or 
 where, how, from whom, or at what price the same may 
 be obtained. No one shall permit any sign or billboard 
 containing such advertisement to remain upon one's 
 premises. But nothing herein shall prohibit manuf ac- ^"°' ^'^''■ 
 turers and wholesale druggists holding permits to sell 
 liquor from furnishing price lists, with description of 
 liquor for sale, to persons permitted to purchase liquor, 
 or from advertising alcohol in business publications or 
 trade journals circulating generally among manufactur- 
 ers of lawful alcoholic perfumes, toilet preparations, 
 flavoring extracts, medicinal preparations, and like arti- 
 cles : Provided, however, That nothing in this Act or in papCTs?^" ™™' 
 the Act making appropriations for the Post Office De- 
 partment, approved March 3, 191T (Thirty-ninth Stat- 
 utes at Large, Part 1, page 1058, et seq.), shall apply to 
 newspapers published in foreign countries when mailed 
 to this country. 
 
 Sec. 18. It shall be unlawful to advertise, manufac- for u™ln'manu- 
 ture, sell, or possess for sale any utensil, contrivance, ma- '"<='>"•« °f "i"™- 
 chine, preparation, compound, tablet, substance, formula 
 direction, or recipe advertised, designed, or intended for 
 use in the unlawful manufacture of intoxicating liquor. 
 
 Sec. 19. No person shall solicit or receive, nor know- reM°viig"^order3 
 ingly permit his employee to solicit or receive, from any '""^ nquor. 
 person any order for liquor or give any information of 
 how liquor may be obtained in violation of this Act. 
 
 Sec. 20. Any person who shall be injured in person, for'^'Yl /Jf^ies 
 propertv, means of support, or otherwise by any intoxi- '^^Y''^,^ '''' '"'"'''" 
 
368 irATIONALi PEOHIBITIOJS". 
 
 right of action against any person who shall, by unlaw- 
 fully selling to or unlawfully assisting in procuring 
 liquor for such intoxicated person, have caused or con- 
 tributed to such intoxication, and in any such action such 
 person shall have a right to recover actual and exemplary 
 Survival of ac- damages. In case of the death of either party, the ac- 
 tion or right of action given by this section shall survive 
 to or against his or her executor or administrator, and 
 the amount so recovered by either wife or child shall be 
 his or her sole and separate property. Such action may 
 be brought in any court of competent jurisdiction. In 
 any case where parents shall be entitled to such damages, 
 either the father or mother may sue alone therefor, but 
 recovery by one of such parties shall be a bar to suit 
 brought hy the other. 
 declared "j-o ^e Sec. 21. Any Toom, house, building, boat, vehicle, 
 public nuisance, structure, or place where intoxicating liquor is manufac- 
 tured, sold, kept, or bartered in violation of this title, 
 and all intoxicating liquor and property kept and used 
 in maintaining the same, is hereby declared to be a com- 
 mon nuisance, and any person who maintains such a 
 Penalty. common nuisance shall be guilty of a misdemeanor and 
 
 upon conviction thereof shall be fined not more than 
 $1,000 or be imprisoned for not more than one year, or 
 both. If a person has knowledge or reason to believe 
 that his room, house, building, boat, vehicle, structure, or 
 place is occuped or used for the manufacture or sale of 
 liquor conti-ary to the provision of this title, and suffers 
 the same to be so occupied or used, such room, house, 
 jj ^ building, boat, vehicle, structure, or place shall be sub- 
 
 ject to a lien for and may be sold to pay all fines and costs 
 assessed against the person guilty of such nuisance for 
 such violation, and any such lien may be enforced by 
 action in any court having jurisdiction. 
 join^nuSance. ''" Sec. 22. An action to eujoin any nuisance defined in 
 this title may be brought in the name of the United 
 States by the Attorney General of the United States 
 or by any United States attorney or any prosecuting 
 attorney of any State or any subdivision thereof or 
 by the commissioner or his deputies or assistants. Such 
 action shall be brought and tried as an action in equity 
 and may be brought in any court having jurisdiction to 
 hear and determine equity cases. If it is made to ap- 
 pear by affidavits or otherwise, to the satisfaction of the 
 court, or judge in vacationj that such nuisance exists, a 
 temporary writ of injunction shall forthwith issue re- 
 straining the defendant from conducting or permitting 
 the continuance of such nuisance until the conclusion of 
 the trial. If a temporary injunction is prayed for, the' 
 court may issue an order restraining the defendant and 
 all other persons from removing or in any way interfer- 
 ing with the liquor or fixtures, or other things used in 
 connectioiP'Sl^fl0SCfchj!fMi©4atiai5t©of this Act constituting 
 such nuisance. No bond shall be required in instituting 
 
JS^ATIOKAL PKOHlBITtON. 359 
 
 such proceedings. It shall not be necessary for the court 
 to find the property involved was being unlawfully used 
 as aforesaid at the time of the hearing, but on finding 
 that the material allegations of the petition are true, the 
 court shall order that no liquors shall be manufactured, 
 sold, bartered, or stored in such room, house, building, 
 boat, vehicle, structure, or place, or any part thereof. 
 And upon judgment of the court ordering such nuisance 
 to be abated, the court may order that the room, house, 
 building, structure, boat, vehicle, or place shall not be 
 occupied or used for one year thereafter; but the court 
 may, in its discretion, permit it to be occupied or used 
 if the owner, lessee, tenant, or occupant thereof shall give 
 bond with sufficient surety, to be approved by the court 
 making the order, in the penal and liquidated sum of not 
 less than $500 nor more than $1,000, payable to the 
 United States, and conditioned that intoxicating liquor 
 will not thereafter be manufactured, sold, bartered, kept, 
 or otherwise disposed of therein or thereon, and that he 
 will pay all fines, costs, and damages that may be as- 
 sessed for any violation of this title upon said property. 
 
 Sec. 23. That any person who shall, with intent to Keeping oi 
 effect a sale of liquor, by himself, his employee, servant, ^JJj"® around 
 or agent, for himself or any person, company or corpora- 
 tion, keep or carry around on his person, or in a vehicle, 
 or other conveyance whatever, or leave in a place for an- 
 other to secui'e, any liquor, or who shall travel to solicit, 
 or solicit, or take, or accept orders for the sale, shipment, 
 or delivery of liquor in Aiolation of this title is guilty of 
 a nuisance and may be restrained by injunction, tem- 
 porary and permanent, from doing or continuing to do 
 any of said acts or things. 
 
 In such proceedings it shall not be necessary to show intent, 
 any intention on the part of the accused to continue such 
 violations if the action is brought within sixty days fol- 
 lowing any such violation of the law. 
 
 For removing and selling property in enforcing this Fees of officer 
 Act the officer shall be entitled to charge and receive the lem"" proplrt"!^ 
 same fee as the sheriff of the county would receive for 
 levying upon and selling property under execution, and 
 for closing the premises and keeping them closed a rea- 
 sonable sum shall be allowed by the court. 
 
 Any violation of this title upon any leased premises by Leased prem- 
 the lessee or occupant thereof shall, at the option of the ^<'^- 
 lessor, work a forfeiture of the lease. 
 
 Sec. 24. In the case of the violation of any injunction, violation o t 
 temporary or permanent, granted pursuant to the pro- inj""""'""- 
 visions of this title, the court, or in vacation a judge 
 thereof, may summarily try and punish the defendant. 
 The proceedings for punishment for contempt shall be contempt pro- 
 commenced by filing with the clerk of the court from "^^ '"^''' 
 which such injunction issued information under oath set- 
 ting' out the alleged facts constituting the violation, 
 whereupon the court Q/g'^a^^ifeMH'QgififtiWith cause a 
 
360 NATIONAL PROHIBITION. 
 
 warrant to issue under which the defendant shall be ar- 
 rested. The trial may be had upon affidavits, or either 
 party may demand the production and oral examination 
 Penalty. of tte witnesses. Any person found guilty of contempt 
 
 tinder the provisions of this section shall be punished by 
 a fine of not less than $500 nor more than $1,000, or by 
 imprisonment of not less than thirty days nor more than 
 Pro e r t t'^^^'^^ months, or by both fine and imprisonment, 
 rights." '"'^ ^ Sec. 25. It shall be unlawful to have or possess any 
 liquor or property designed for the manufacture of liquor 
 intended for use in violating this title or which has been 
 rantTr^o ^^stA'. SO used, and no property rights shall exist in any such 
 228 ; see post, liquor or property. A search warrant may issue as pro- 
 "' vided in Title XI of public law numbered 24 of the Sixty- 
 
 fifth Congress, approved June 15, 1917, and such liquor, 
 the containers thereof, and svich property so seized shall 
 be subject to such disposition as the court may make 
 thereof. If it is found that such liquor or property was 
 so unlawfully held or possessed, or had been so unlaw- 
 fully used, the liquor, and all property designed for the 
 unlawful manufacture of liquor, shall be destroyed, un- 
 less the court shall otherwise order. ISTo search warrant 
 shall issue to search any private dwelling occupied as 
 such unless it is being used for the unlawful sale of in- 
 toxicating liquor, or unless it is in part used for some 
 business purpose such as a store, shop, saloon, restaurant, 
 dwi-m/ '-^ ^de- hotel, or boarding house. The term " private dwelling " 
 fined. shall be construed to include the room or rooms used and 
 
 occupied not transiently but solely as a residence in an 
 ro''e?t7'" " * apartment house, hotel, or boarding house. The prop- 
 proper y. ^^^^ scized ou any such warrant shall not be taken from 
 
 the officer seizing the same on any writ of replevin or 
 other like process. 
 uo/bei"? °traS- Sec. 26. When the commissiouer, his assistauts, inspec- 
 ported. tors, or any officer of the law shall discover any person 
 
 in the act of transporting in violation of the law, intoxi- 
 cating liquors in any wagon, buggy, automobile, water or 
 air craft, or other vehicle, it shall be his duty to seize any 
 and all intoxicating liquors found therein being trans- 
 ported contrary to law. Whenever intoxicating liquors 
 transported or possessed illegally shall be seized by an 
 officer he shall take possession of the vehicle and team 
 or automobile, boat, air or water craft, or any other con- 
 A'eyance, and shall arrest any person in charge thereof. 
 Such officer shall at once proceed against the person ar- 
 rested under the provisions of this title in any court hav- 
 ing competent jurisdiction; but the said vehicle or con- 
 veyance shall be returned to the owner upon execution 
 by him of a good and valid bond, with sufficient sure- 
 ties, in a sum double the value of the property, which 
 said bond shall be approved by said officer and shall be 
 conditioned to return said property to the custody of 
 said office^CTJf/^^l^as^^^l^o abide the judgment of 
 the court. The court upon conviction or the person so 
 
HATIONAL PROHIBITIOBT. 361 
 
 arrested shall order the liquor destroyed, and unless good 
 cause to the contrary is shown by the owner, shall order 
 a sale by public auction of the property seized, and the 
 officer making the sale, after deducting the expenses of 
 keeping the property, the fee for the seizure, and the cost 
 of the sale, shall pay all liens, according to their priori- 
 ties, which are established, by intervention or otherwise 
 at said hearing or in other proceeding brought for said 
 purpose, as being bona fide and as having been created 
 without the lienor having any notice that the carrying 
 vehicle was being used or was to be used for illegal trans- 
 portation of liquor, and shall pay the balance or the pro- 
 ceeds into the Treasury of the United States as miscel- 
 laneous receipts. All liens against property sold under ^^.^J™' j.^^l"'"^' 
 the provisions of this section shall be transferred from ""^^ ^'"'"^'^ ''' 
 the property to the proceeds of the sale of the property. 
 If, however, no one shall be found claiming the team, 
 vehicle, water or air craft, or automobile, the taking of 
 the same, with a description thereof, shall be advertised 
 in some newspaper published in the city or county where 
 taken or if there be no newspaper published in such city or 
 county, in a newspaper having circulation in the county, 
 once a week for two weeks and by handbills posted in 
 three public places near the place of seizure, and if no 
 claimant shall appear within ten days after the last pub- 
 lication of the advertisement, the property shall be sold 
 and the proceeds after deducting the expenses and costs 
 shall be paid into the Treasury of the United States as 
 miscellaneous receipts. 
 
 Sec. 27. In all cases in which intoxicating liquors may j. ^0*"™^^,^ ^°^, 
 be subject to be destroyed under the provisions of this ment"^ or alency 
 Act the court shall have jurisdiction upon the applica- °* ^""^'^ ^***^- 
 tion of the United States attorney to order them deliv- 
 ered to any department or agency of the United States 
 Government for medicinal, mechanical, or scientific uses, 
 or to order the same sold at private sale for such pur- 
 poses to any person having a permit to purchase liquor 
 the proceeds to be covered into the Treasury of the 
 United States to the credit of miscellaneous receipts, and 
 all liquor heretofore seized in any suit or proceeding 
 brought for violation of law may likewise be so disposed 
 of, if not claimed within sixty days from the date this 
 section takes effect. 
 
 Sec. 28. The commissioner, his assistants, agents, and ^^°.™fj *"^ 
 inspectors, and all other officers of the United States, Kmmis^sionerand 
 whose duty it is to enforce criminal laws, shall have all ^en" oF act?"^"*' 
 the power and protection in the enforcement of this Act 
 or any provisions thereof which is conferred by law for 
 the enforcement of existing laws relating to the manu- 
 acture or sale of intoxicating liquors under the law of the 
 United States. 
 
 Sec. 29. Any person who manufactures or sells liquor j^^P^^'^'y^j.j'o^J 
 in violation of this title sMl fpAjS^Jirst offense be fined Beiung^uquo". ° 
 not more than $l,OOdfW'WpWslmm not exceeding six 
 months, and for second or subsequent offense shall be 
 
362 NATIOiSrAJU peohibition. 
 
 fined not less than $200 nor more than $2,000 and be 
 imprisoned not less than one month nor more than five 
 years. 
 Penalty £ o r Any pcrson violating the provisions of any permit, or 
 violating permit. ^]^q makes any false record, report, or affidavit required 
 by this title, or violates any of the provisions of this title, 
 for which offense a special penalty is not prescribed, shall 
 be fined for a first offense not more than $500; for a 
 second offense not less than $100 nor more than $1,000, or 
 be imprisoned not more than ninety days ; for any subse- 
 quent offense he shall be fined not less than $500 and be 
 imprisoned not less than three months nor more than two 
 years. It shall be the duty of the prosecuting officer to 
 ascertain whether the defendant has been previously con- 
 victed and to plead the prior conviction m the affidavit, 
 information, or indictment. The penalties provided in 
 this Act against the manufacture of liquor without a per- 
 mit shall not apply to a person for manufacturing non- 
 intoxicating cider and fruit juices exclusively for use in 
 his home, but such cider and fruit juices shall not be sold 
 or delivered except to persons having permits to manu- 
 facture vinegar. 
 
 Seo. 30. No person shall be excused, on the ground 
 te^im?ny°o™^t^ ^^^^ ^^ -"^^y ^^^ to incriminate him or subject him to a 
 iiessU. penalty or forfeiture, from attending and testifying, or 
 
 producing books, papers, documents, and other evidence 
 m obedience to a suopoena of any court in any suit or 
 proceeding based upon or growing out of any alleged 
 violation of this Act; but no natural person shall be pros- 
 ecuted or subjected to any penalty or forfeiture for or 
 on account of any transaction, matter, or thing as to 
 which, in obedience to a subpoena and under oath, ne may 
 so testify or produce evidence, but no person shall be ex- 
 empt from prosecution and punishment for perjury com- 
 erjury. mittcd iu SO testifying. 
 
 Place of Bale '^^^" ^^' ^^ ^^^^ ^^ ^ ^® ^^ liquor where the delivery 
 w h eTe deiivCTy thereof was made by a common or other carrier the sale 
 made by carrier, g^jj^ delivery shall bs deemed to be made in the county or 
 district wherein the delivery was made by such carrier 
 to the consignee, his agent or employee, or in the county 
 or district wherein the sale was made, or from which the 
 shipment was made, and prosecution for such sale or de- 
 livery may be had in any such county or district. 
 Sec. 32. In any affidavit, information, or indictment 
 fense3°i" indict- for the violation of this Act, separate offenses may be 
 of™urch^'8er°eto! united in separate counts and the defendant may be tried 
 on all at one trial and the penalty for all offenses may be 
 imposed. It shall not be necessary in any affidavit, in- 
 formation, or indictment to give the name of the pur- 
 chaser or to include any defensive negative averments, 
 but it shall be sufficient to state that the act complained 
 of was then and there prohibited and unlawful, but this 
 provision i^fHj^^t>\M9li6/y^W^^ ^ preclude the trial 
 court from airecting the furnishing the defendant a bill 
 of particulars when it deems it proper to do so. 
 
NATIONAL PROHIBITION. 363 
 
 _ Sec. 33. After February 1, 1920, the possession of Hquoris" pn^ 
 liquors by any person not legally permitted under this facie evidence of 
 title to possess liquor shall be prima facie evidence that ""''*"'"' °' "°'- 
 such liquor is kept for the purpose of being sold, bar- 
 tered, exchanged, given away, furnished, or otherwise 
 disposed of in violation of the provisions of this title. 
 Every person legally permitted under this title to have 
 liquor shall report to the commissioner within ten days Eeport ot pos- 
 after the date when the eighteenth amendment of the '''''"" ""'""'"• 
 Constitution of the United States goes into effect, the 
 kind and amount of intoxicating liquors in his posses- 
 sion. But it shall not be unlawful to possess liquors in ,.?°^^'^dwciiin " 
 one's private dwelling while the same is occupied and ^"™ ™ ^'"^' 
 used by him as his dwelling only and such liquor need 
 not be reported, provided such liquors are for use only 
 for the personal consumption of the owner thereof and 
 his family residing in such dwelling and of his bona fide 
 guests when entertained by him therein ; and the burden 
 of proof shall be upon the possessor in any action con- 
 cerning the same to prove that such liquor was lawfully 
 acquired, possessed, and used. 
 
 Sec. 34. All records and reports kept or filed under j,j3^™'^°5 °^_ 
 the provisions of this Act shall be subject to inspection at ports. 
 any reasonable hour by the commissioner or any of his 
 agents or by any public prosecutor or hj any person 
 designated by him, or by any peace officer in the State 
 where the record is kept, and copies of such records and orS!'''^° "* "^"" 
 reports duly certified by the person with whom kept or 
 filed may be introduced in evidence with like effect as the 
 originals thereof, and verified copies of such records shall 
 be furnished to the commissioner when called for. 
 
 Sec. 35. All provisions of law that are inconsistent coStrat uwi"' 
 with this Act are repealed only to the extent of such 
 inconsistency and the regulations herein provided for the 
 manufacture or traffic in intoxicating liquor shall be con- 
 strued as in addition to existing laws. This Act shall 
 not relieve anyone from paying any taxes or other 
 charges imposed upon the manufacture or traffic in such 
 liquor. No liquor revenue stamps or tax receipts for any Tax on iiie- 
 illegal manufacture or sale shall be issued in advance, but fureVTiq^™'*'^' 
 upon evidence of such illegal manufacture or sale a tax 
 shall be assessed against, and collected from, the person 
 responsible for such illegal manufacture or sale in double 
 the amount now provided by law, with an additional pen- 
 alty of $500 on retail dealers and $1,000 on manufacturers. 
 The payment of such tax or penalty shall give no right 
 to engage in the manufacture or sale of such liquor, or 
 relieve anyone from criminal liability, nor shall this Act 
 relieve any person from any liability, civil or criminal, 
 'heretofore or hereafter incurred under existing laws. 
 
 The commissioner, with the approval of the Secretary Compromises. 
 of the Treasury, may compromise any civil cause arising 
 under this title. before bringing action in court; and with 
 the approval of theDjgmmfyy &M€mft^e may com- 
 
364 K-ATIONAL PROHIBITIOIT. 
 
 promise any such cause after action thereon has been 
 commenced. 
 iicUty*of act!""*' Sec. 36. If any provision of this Act shall be held in- 
 valid it shall not be construed to invalidate other pro- 
 visions of the Act. 
 J. ^ 1 rage of Sec. 37. Nothing herein shall prevent the storage in 
 United States bonded warehouses of all liquor manufac- 
 tured prior to the taking effect of this Act, or prevent 
 the transportation of such liquor to such warehouses or 
 to any wholesale druggist for sale to such druggist for 
 purposes not prohibited when the tax is paid, and per- 
 mits may be issued therefor. 
 tabiiyS^ teS tS -^ manufacturer of any beverage containing less than 
 one-half o f 1 oue-half of 1 per centum of alcohol by volume may, on 
 per cent of aioo- jjja^jjjjjg application and giving such bond as the com-, 
 missioner shall prescribe, be given a permit to develop in 
 the manufacture thereof by the usual methods of fermen- 
 tation and fortification or otherwise a liquid such as 
 beer, ale, porter, or wine, containing more than one-half 
 of 1 per centum of alcohol by volume, but before any such 
 liquid is withdrawn from the factory or otherwise dis- 
 posed of the alcoholic contents thereof shall under such 
 rules and regulations as the commissioner may prescribe 
 be reduced below such one-half of 1 per centum of alco- 
 hol: Provided^ That such liquid may be removed and 
 transported, under bond and under such regulations as 
 the commissioner may prescribe, from one bonded plant 
 or warehouse to another for the purpose of having the 
 alcohol extracted therefrom. And such liquids may be 
 developed, under permit, by persons other than the man- 
 ufacturers of beverages containing less than one-half of 1 
 per centum of alcohol by volume, and sold to such manu- 
 facturers for conversion into such beverages. The alco- 
 hol removed from such liquid, if evaporated and not con- 
 densed and saved, shall not be subject to tax; if saved, it 
 shall be subject to the same law as other alcoholic liquors. 
 Credit shall be allowed on the tax due on any alcohol so 
 saved to the amount of any tax paid upon distilled spirits 
 or brandy used in the fortification of the liquor from 
 which the same is saved. 
 Fortified wines. When fortified wines are made and used for the pro- 
 duction of nonbeverage alcohol, and dealcoholized wines 
 containing less than one-half of 1 per centum of alcohol 
 by volume, no tax shall be assessed or paid on the spirits 
 used in such fortification, and such dealcoholized wines 
 produced under the provisions of this Act, whether car- 
 bonated or not, shall not be subject to the tax on arti- 
 ficially carbonated or sparkling wines, but shall be sub- 
 ject to the tax on still wines only, 
 jroo?'^'^"' "' ^^ ^'^y ^*^® where the manufacturer is charged with 
 manufacturing or selling for beverage purposes any 
 malt, vinous, or fermented liquids containing one-half of 
 1 per centum..or more x»f alcohpl by volume, or in any ■ 
 case wher«^'WMfeP§P,%ying been permitted bj 
 the commissioner to devielop a liquid such as ale, beer, 
 
jSTAtional prohibition. 365 
 
 porter, or wine containing more than one-half of 1 per 
 centum of alcohol by volume in the manner and for the 
 purpose herein provided, is charged with failure to re- 
 duce the alcoholic content of any such liquid below such 
 one-half of 1 per centum before withdrawing the same 
 from the factory, then in either such case the burden of 
 proof shall be on such manufacturer to show that such 
 liquid so manufactured, sold, or withdrawn contains less 
 than one-half of 1 per centum of alcohol by volume. In ' Expense o( 
 any suit or proceeding involving the alcoholic content of ^"'''^'^'"• 
 any beverage, the reasonable expense of analysis of such 
 beverage shall be taxed as costs in the case. 
 
 Sec. 38. The Commissioner of Internal Revenue and assfs^iTi^rderk"! 
 the Attorney General of the United States are hereby f^-^j^ 1^'^'"^'^ °^ 
 respectively authorized to appoint and employ su:ch as- ° °* ™'''' '^^' 
 sistants, experts, clerks, and other employees in the Dis- 
 trict of Columbia or elsewhere, and to purchase such sup- 
 plies and equipment as they may deem necessary for the 
 enforcement of the provisions of this Act, but such as- 
 sistants, experts, clerks, and other employees, except such 
 executive officers as may be appointed by the Commis- 
 sioner or the Attorney General to have immediate direc- 
 tion of the enforcement of the provisions of this Act, and 
 persons authorized to issue permits, and agents and in- 
 spectors in the field service, shall be appointed under the 
 rules and regulations prescribed by the Civil Service Act : prefCTence"'t'o 
 Provided, That the Commissioner and Attorney General s^norsj ^ "^ ^ ^""^ 
 in making such appointments shall give preference to 
 those who have served in the military or naval service 
 in the recent war, if otherwise qualified, and there is hereby 
 authorized to be appropriated, out of any money in the 
 Treasury not otherwise appropriated, such sum as may be 
 required for the enforcement of this Act including per- 
 sonal services in the District of Columbia, and for the fiscal 
 year ending June 30, 1920, there is hereby appropriated. Appropriation, 
 out of any money in the Treasury not otherwise appro- 
 priated, the sum of $2,000,000 for the use of the Commis- 
 sioner of Internal Eevenue and $100,000 for the use of the 
 Department of Justice for the enforcement of the pro- 
 visions of this Act, including personal services in the Dis- 
 trict of Columbia and necessary printing and binding. summons 
 
 Sec. 39. In all cases wherein the property of any citi- 
 zen is proceeded against or wherein a judgment affecting 
 it might be rendered, and the citizen is not the one who 
 in person violated the provisions of the law, summons 
 must be issued in due form and served personally, if said 
 person is to be found within the jurisdiction of the court. 
 
 TITLE III. 
 
 IXDtlSTRIAIi ALCOHOL. 
 
 Sec. 1. When used in this title — 
 
 The term " alcohol " means that substance known as 
 ethyl alcohol, hydrate4 pxide of ethyl, or spirit of wine, Definitions. 
 from whatever source or whatever processes produced. 
 
366 
 
 NATIONAL PEOHIBITIOK. 
 
 The term " container " includes any receptacle, vessel, 
 or form of package, tank, or conduit used or capable of 
 use for holding, storing, transferring, or shipment of 
 alcohol. 
 
 INDUSTRIAL ALCOHOL PLANTS AND ■VVAEEHOtTSES. 
 
 Permits ; bondB. 
 
 Warehouses; 
 entries and with- 
 drawals. 
 
 Transfers. 
 
 Time tax at- 
 taches. 
 
 Joint and sev- 
 eral liability for 
 tax. 
 
 Lien of tax. 
 
 Withdrawal 
 from bonded 
 warehouses. 
 
 Redistillation, 
 etc. 
 
 Sec. 2. Any person now producing alcohol shall, with- 
 in thirty days after the passage of this Act, make appli- 
 cation to the commissioner for registration of his indus- 
 trial alcohol plant, and as soon thereafter as practicable 
 the premises shall be bonded and permit may issue for 
 the operation of such plant, and any person hereafter 
 establishing a plant for the production of alcohol shall 
 likewise before operation make application, file bond, and 
 receive permit. 
 
 Sec. 3. Warehouses for the storage and distribution 
 of alcohol to be used exclusively for other than beverage 
 purposes may be established upon filing of application 
 and bond, and issuance of permit at such places, either in 
 connection with the manufacturing plant or elsewhere, as 
 the commissioner may determine; and the entry and 
 storage of alcohol therein, and the withdrawals of alcohol 
 therefrom shall be made in such containers and by such 
 means as the commissioner by regulation may prescribe. 
 
 Sec. 4. Alcohol produced at any registered industrial 
 alcohol plant or stored in any bonded warehouse may be 
 transferred under regulations to any other registered in- 
 dustrial alcohol plant or bonded warehouse for any law- 
 ful purpose. 
 
 Sec. 5. Any tax imposed by law upon alcohol shall 
 attach to such alcohol as soon as it is in existence as such, 
 and all proprietors of industrial alcohol plants and 
 bonded warehouses shall be jointly and severally liable 
 for any and all taxes on any and all alcohol produced 
 thereat or stored therein. Such taxes shall be a first lien 
 on such alcohol and the premises and plant in which such 
 alcohol is produced or stored, together with all improve- 
 ments and appurtenances thereunto belonging or m any 
 wise appertaining. 
 
 Sec. 6. Any distilled spirits produced and fit for bev- 
 erage purposes remaining in any bonded warehouse on or 
 before the date when the eighteenth amendment of the 
 Constitution of the United States goes into effect, may, 
 under regulations, be withdrawn therefrom either for 
 denaturation at any bonded denaturing plant or for de- 
 posit in a bonded warehouse established under this Act; 
 and when so withdrawn, if not suitable as to proof, 
 purity, or quality for other than beverage purposes, such 
 distilled spirits shall be redistilled, purified, and changed 
 in proof so as to render such spirits suitable for other 
 purposes, and having been so treated may thereafter 
 be A&n&tnjQ±ffj^^^l^Tj^^(^^f^ce with the provisions of 
 
UTATIONAIi PROHIBITION. 367 
 
 Sec. 7. Any distillery or bonded warehouse heretofore <,i8tnfe?y,'°" etc.! 
 legally established may, upon filing application and bond as industrial ai- 
 and the granting of permit, be operated as an industrial ""^"^ '''*"*■ 
 alcohol f)lant or bonded warehouse under the provisions 
 of this title and regulations made thereunder. 
 
 Sec. 8. Alcohol may be produced at any industrial al- (ju^n"""!^^^^^!''"' 
 cohol plant established under the provisions of this title, 
 from any raw materials or by any processes suitable for 
 the production of alcohol, and, under regulations, may 
 be used at any industrial alcohol plant or bonded ware- 
 house or sold or disposed of for any lawful purpose, as in 
 this Act provided. 
 
 Sec. 9. Industrial alcohol plants and bonded ware- pia^nteTid'war^ 
 houses established under the provisions of this title shall houses from cer- 
 be exempt from the provisions of sections 3154, 3244, ReWs^s'tTut^. 
 3258, 3259, 3260, 3263, 3264, 3266, 3267, 3268, 3269, 3271, 
 3273, 3274, 3275, 3279, 3280, 3283, 3284, 3285, 3286, 3287, 
 3288, 3289, 3290, 3291, 3292, 3293, 3294, 3295, 3302, 3303, 
 3307, 3308, 3309, 3310, 3311, 3312, 3313, 3314, and 3327 
 of the Revised Statutes ; sections 48 to 60, inclusive, and 
 sections 62 and 67 of the Act of August 27, 1894 (Twenty- 
 eighth Statutes, pages 663 to 568), and from such other 
 provisions of existing laws relating to distilleries and 
 bonded warehouses as may, by regulations, be declared 
 inapplicable to industrial alcohol plants and bonded 
 warehouses established under this Act. 
 
 Regulations may be made embodying any provision of Regulations, 
 the sections above enumerated. 
 
 tax-free alcohol. 
 
 Sec. 10. Upon the filing of application and bond and of pLift. "^ 
 issuance of permit denaturing plants may be established 
 upon the premises of any industrial alcohol plant, or 
 elsewhere, and shall be used exclusively for the denatura- 
 tion of alcohol by the admixture of such denaturing ma- 
 terials as shall render the alcohol, or any compound in 
 which it is authorized to be used, unfit for use as an in- 
 toxicating beverage. 
 
 Alcohol lawfully denatured may, under regulations, be ^*^^ *^^ fr««- 
 sold free of tax either for domestic use or for export. 
 
 Nothing in this Act shall be construed to require man- gar?'*'""*'^ ^'"^ 
 Tifacturers of distilled vinegar to raise the proof of any 
 alcohol used in such manufacture or to denature the 
 same. 
 
 Sec. 11. Alcohol produced at any industrial alcohol withdrawal, 
 plant or stored in any bonded warehouse may, under reg- 
 ulations, be withdrawn tax free as provided by existing 
 law from such plant or warehouse for transfer to any 
 denaturing plant for denaturation, or may, under regula- 
 tions, before or after denaturation, be removed from any 
 such plant or warehouse for any lawful tax-free purpose. 
 
 Spirits of less proof than one hundred and sixty de- 
 grees may, under regu4si|»'fii#c/l3M'^?SWidj^e alcohol for 
 
368 KATIOWAL PBOHIBITION. 
 
 oro^of ttL'ie'r' ^^^ purpose of denaturation, under the provisions of this 
 title. 
 
 Alcohol may be withdrawn, under regulations, from 
 
 any industrial plant or bonded warehouse tax free by the 
 
 Withdrawal by United States or any governmental agency thereof, or by 
 
 United States, ,, i c<i i i m -i • • • i u 
 
 States, etc. the Several btates and lerritories or any municipal sub- 
 division thereof or by the District of Columbia, or for 
 the use of any scientific university or college of learning, 
 any laboratory for use exclusively in scientific research, 
 or for use in any hospital or sanatorium. 
 
 But any person permitted to obtain alcohol tax free, 
 except the tJnited States and the several States and Ter- 
 ritories and subdivisions thereof, and the District of 
 Columbia, shall first apply for and secure a permit to 
 purchase the same and give the bonds prescribed under 
 title II of this Act, but alcohol withdrawn for nonbever- 
 age purposes for use of the United States and the several 
 States, Territories and subdivisions thereof, and the Dis- 
 trict of Columbia may be purchased and withdrawn sub- 
 ject only to such regulations as may be prescribed. 
 
 GEXERAL PROVISIONS. 
 
 Additional pen- Sec. 12. The penalties provided in this title shall be ill 
 
 Permits. 
 
 alties. 
 
 addition to any penalties provided in title 2 of this Act, 
 unless expressly otherwise therein provided. 
 
 Eeguiaticns. Qec. 13. The Commissioner shall from time to time 
 issue regulations respecting the establishment, bonding, 
 and operation of industrial alcohol plants, denaturing 
 plants, and bonded warehouses authorized herein, and the 
 distribution, sale, export, and use of alcohol which may 
 be necessary, advisable, or proper, to secure the revenue, 
 to prevent diversion of the alcohol to illegal uses, and to 
 place the nonbeverage alcohol industry and other indus- 
 tries using such alcohol as a chemical raw material or for 
 other lawful purpose upon the highest possible plane of 
 scientific and commercial efficiency consistent with the 
 interests of the Government, and which shall insure an 
 ample supply of such alcohol and promote its use in 
 scientific research and the development of fuels, dyes, 
 and other lawful products. 
 
 R e J " n d s in Sec. 14. Whenever any alcohol is lost by evaporation 
 or other shrinkage, leakage, casualty, or unavoidable 
 cause during distillation, redistillation, denaturation, 
 withdrawal, piping, shipment, warehousing, storage, 
 packing, transfer, or recovery, of any such alcohol the 
 commissioner may remit or refund any tax incurred un- 
 der existing law upon such alcohol, provided he is satis- 
 fied that the alcohol has not been diverted to any illegal 
 use: Provided, also, That such allowance shall not be 
 granted if the person claiming same is indemnified 
 against such loss by a valid claim of insurance. 
 
 Penalties. Sec. 15. Whoever operates an industrial alcohol plant 
 
 or a denat5li*iT)i^,^feijPft^JtJ^^ with the pro- 
 
 visions of this title and lawful regulations made thei-e- 
 
NATIONAL. PKOHIBITION'. 369 
 
 under, or whoever withdraws or atteriipts to withdraw 
 or secure tax free any alcohol subject to tax, or whoever 
 otherwise violates any of the provisions of this title or of 
 regulations lawfully made thereunder shall be liable, for 
 the first offense, to a penalty of hot exceeding $1,000, or 
 imprisonment not exceeding thirty days, or both, and for 
 a second or cognate offense to a penalty of not less than 
 $100 nor more than $10,000, and to imprisonment of not 
 less than thirty days nor more than one year. It shall 
 be lawful for the commissioner in all cases of second or 
 cognate offense to refuse to issue for a period of one year 
 a permit for the manufacture or use of alcohol upon the 
 premises of any person responsible in any degree for 
 the violation. 
 
 Sec. 16. Any tax payable upon alcohol under existing taf °"''°''°° ° ' 
 law may be collected either by assessment or by stamp as 
 regulations shall provide; and if by stamp, regulations 
 shall issue prescribing the kind of stamp to be used and 
 the manner of aiiixing and canceling the same. 
 
 Sec, 17. When any property is seized for violation of ^^^^ e i e^a s^e^^of 
 this title it may be released to the claimant or to any in- 
 tervening party, in the discretion of the commissioner, on 
 a bond given and approved. 
 
 Sec. 18. All adrninistrative provisions of internal- p,OT^^<iM*'of*in- 
 revenue law, including those relating to assessment, col- temai- revenue 
 lection, abatement, and refund of taxes and penalties, and ^'^ """^ "^'' 
 the seizure and forfeiture of property, are made ap- 
 plicable to this title in so far as they are not inconsistent 
 with the provisions thereof. 
 
 Sec. 19. AH prior statutes relating to alcohol as de- K^peai of laws. 
 fined in this title are hereby repealed- in so far as they are 
 inconsistent with the provisions of this title. 
 
 Sec. 20. That it shall be unlawful to import or intro- ^^"^^ ^'"■ 
 duce into the Canal Zone, or to manufacture, sell, give 
 away, dispose of, transport, or have in one's possession or 
 under one's control within the Canal Zone, anj alcoholic, 
 fermented, brewed, distilled, vinous, malt, or spirituous 
 liquors, except for sacramental, scientific, pharmaceutical, 
 industrial, or medicinal purposes, under regulations to be 
 made by the President, and any such liquors within the 
 Canal Zone in violation hereof shall be forfeited to the 
 "ETnited States and seized: Provided, That this section 
 shall not apply to liquor in transit through the Panama 
 Canal or on the Panama Railroad. 
 
 That each and every violation of any of the provisiohs P'^" '"l^ ™ 
 of this section shall be punished by a fine or not more 
 than $1,000 or imprisonment not exceeding six months 
 for a first offense, and by a fine not less than $200 nor 
 more than $2,000 and imprisonment not less than one 
 month nor more than five years for a second or subse- 
 quent offense. 
 
 That all offenses heretofore committed within the 
 Canal Zone may be Pg)^^g^?^i)^/^;i^f^lties therefor . 
 
 140184°— 20 24 
 
370 NATIONAL PBOHIBITIOH. 
 
 enforced in tke same manner and to the same extent as 
 
 if this act had not been passed. ^ 
 
 Sec. 21. Titles I and III and sections 1, 27, 37, and 38 of™f4SoBs.'^*° 
 of title II of this Act shall take effect and be in force 
 from and after the passage and approval of the Act. 
 The other sections of title II shall take effect and be in 
 force from and after the date when the eighteenth 
 amendment of the Constitution of the United States goes 
 into effect. 
 
 F. H. Gtt.t,f,tt, 
 Speaker of the House of Representatives. 
 
 Thos. K. Marshall, 
 Vice President of the United States and 
 President of the Senate. 
 
 In the House or Eepkesenta- 
 
 TivES or THE United States, 
 
 October 27, 1919. 
 
 The President of the United States having returned to vZiilmt's V^o^ 
 the House of Representatives, in which it originated, the 
 bill (H. E. 6810) entitled " An Act to prohibit intoxicat- 
 ing beverages, and to regulate the manufacture, produc- 
 tion, use, and sale of high-proof spirits for other than 
 beverage purposes, and to insure an ample supply of alco- 
 hol and promote its use in scientific research and in the 
 development of fuel, dye, and other lawful industries," 
 with his objections thereto, the House proceeded iii pur- 
 suance of the Constitution to reconsider the same ; and 
 
 Resolved., That the said bill pass, two-thirds of the 
 House of Representatives agreeing to pass the same. 
 
 Attest : 
 
 Wji. Ttlee Page 
 
 Clerk. 
 
 In the Senate of the United States, 
 
 Legislative Day., October 22, 1919, 
 
 Calendar Day October 28, 1919. 
 The Senate having proceeded to reconsider the bill (H. 
 R. 6810) " An Act to prohibit intoxicating beverages, and 
 to regulate the manufacture, production, use, and sale of 
 high-proof spirits for other than beverage purposes, and 
 to insuie an ample supply of alcohol and promote its use 
 in scientific research and in the development of fuel, dj^e, 
 and other lawful industries," returned by the President 
 of the United States to the House of Representatives, in 
 which it originated, with his objections, and passed by 
 the House on a reconsideration of the same, it was 
 
 RESOLVED, That the said bill pass, two-thirds of the 
 Senators present having voted in the affirmative. 
 Attest : 
 
 George A. Sandeeson 
 3:40 P. M. Secretary. 
 
 Digitized by Microsoft® 
 
Chapter Eight. 
 TOBACCO AND SNUFF. 
 
 Sec. 
 
 69. Act of August 27, 1894. Manu- 
 facturer of tobacco defined. 
 27. Act of October 1, 1890, amended. 
 Restrictions upon fanners re- 
 moved. 
 3355 (amended). Manufacturer's 
 statement. 
 Bond and certificate ; penalties. 
 3356. Sign to be put up by manufac- 
 turer ; penalty for omission. 
 3357 (amended). Record of manufac- 
 turers to be kept by collector. 
 
 3358. Aimual inventory. Books and 
 
 monthly abstracts. Taxes on 
 cigars, cigarettes, and size of 
 packages of tobacco ; penalty. 
 3244 (amended). Subsection 6. Deal- 
 ers in leaf tobacco defined. 
 26. Act of October 1, 1890. Registry. 
 
 3359. Dealers in leaf tobacco to render 
 
 statement of sales when de- 
 manded. Examination of 
 books. 
 
 3360 (amended). Books of dealer in 
 leaf tobacco ; penalty. 
 
 3361. (Repealed by section 69, act Au- 
 gust 27, 1894.) 
 34. Act of August 5, 1909. Eftective 
 date of certain sections. 
 
 3362 (amended). Tobacco and snuff, 
 
 how put up. 
 
 3363 ( amended ) . Tobacco and snuff to 
 
 be sold only in prescribed pack- 
 ages ; penalty. Exception. 
 
 3364 (amended). Caution label; pen- 
 
 alty. 
 
 3365. (Obsolete.) 
 
 S366. Purchasing tobacco not branded 
 or stamped ; penalty. 
 
 3367. Purchasing tobacco from manu- 
 facturers who have not paid 
 tax. 
 
 3368 (amended). Tax on tobacco and 
 snuff. 
 
 701. Act of February 24, 1919. Rate 
 
 of tax on tobacco and snuff 
 manufactured in or imported 
 into United States. 
 
 702. (Same). Floor tax. 
 
 3369. Stamps, how prepared, fur- 
 nished, and sold. 
 
 Stamping forfeited tobacco or to- 
 bacco sold under distraint. 
 
 Destruction of unsalable tobacco 
 and cigars. 
 
 Sec. 
 
 3370. Tobacco manufactured by one 
 
 person for another or on 
 
 shares ; fraud in such cases ; 
 
 penalty. 
 3371 (amended). Assessment of tax 
 
 on tobacco, snuff, and cigars. 
 
 removed without stamps. 
 
 3372. Removing unlawfully, selling 
 
 without stamps, or payment of 
 tax, or giving bond, making 
 false entries ; forfeiture. 
 
 3373. Absence of stamp evidence of 
 
 nonpayment ; forfeiture. 
 
 3374. Removing, except in proper pack- 
 
 ages or without stamp, selling 
 unlawfully, etc. ; penalty. 
 
 3375. Affixing false stamps or stamps 
 
 before used ; penalty. 
 
 3376. Stamps on empty packages to be 
 
 destroyed ; buying, selling, or 
 using the same; penalty. 
 3377 (amended). Imported tobacco and 
 snuff ; also scraps, cuttings, 
 and clippings. 
 
 3378. (Obsolete.) 
 
 3379. (Obsolete.) 
 
 3380. (Obsolete.) 
 
 3244 (amended). Subsection 11. Ped- 
 dlers of tobacco, defined. 
 
 3381 (amended). Peddlers of tobacco ; 
 statement and bond. 
 
 3382. Peddlers of tobacco traveling 
 with wagon. 
 
 3383 (amended). Peddler to obtain 
 
 and exhibit certificate, etc. 
 
 3384 (amended). Peddling tobacco un- 
 
 lawfully ; penalty. 
 
 3385 (amended). Exportation of 
 
 manufactured tobacco, etc. ; 
 penalty for relandlng, etc. 
 24. Act of February 8, 1875. Trans- 
 portation . bond, etc. ; export 
 bond, etc. 
 1. Act of August 4, 1886. Regula- 
 tions authorized. 
 1. Act of October 3, 1913. Reim- 
 ported tobacco. 
 .3386 (amended). Drawback on ex- 
 ported tobacco, snuff, and 
 cigars. 
 Fraudulent claims for drawback. 
 1, 7. Act of April 30, 1912. Statistics 
 of leaf tobacco. 
 
 Digitized by Microsoft® 
 
 371 
 
372 TOBACCO AND SNUFF. 
 
 of"tXcco'"'de- Sec. 69. [Act of August 27, 189^ (28 Stat., 509).] 
 fined. Every person whose business it is to manufacture tobacco 
 
 or snuff for himself, or who employs others to manufac- 
 ture tobacco or snuff, whether such manufacture be by 
 cutting, pressing, grinding, crushing, or rubbing of any 
 raw or leaf-tobacco, or otherwise preparing raw or leaf 
 tobacco, or manufactured or partially manufactured to- 
 bacco or snuff, or the putting up for use or consumption 
 of scraps, waste, clippings, stems, or deposits of tobacco 
 resulting from any process of handling tobacco, or^ by the 
 working or preparation of leaf tobacco, tobacco stems, 
 scraps, clippings, or waste, by sifting, twisting, screening, 
 or any other process, shall be regarded as a manufacturer 
 of tobacco. 
 Retail leaf Everv persou shall also be regarded as a manufacturer 
 
 dealers when re- o . i i i • •, • i nii.,i 
 
 narded as manu- 01 toDacco whose busiuess it IS to Sell leal tobacco in 
 facturers. quantities less than a hogshead, case, or bale; or who 
 
 sells directly to consumers, or to persons other than duly 
 registered dealers in leaf tobacco, or duly registered 
 manufacturers of tobacco, snuff or cigars, or to persons 
 who purchase in packages for export; and all tobacco so 
 sold by such persons shall be regarded as manufactured 
 tobacco, and such manufactured tobacco shall be put up 
 and prepared by such manufacturer in such packages only 
 as the Commissioner of Internal Revenue, with the ap- 
 proval of ther Secretary of the Treasury, shall prescribe : 
 ^ Farmers and Provided, That farmers and growers of tobacco who sell 
 '^''°'^'"^^' leaf tobacco of their own growth and raising sRall not be 
 
 regarded as manufacturers of .tobacco ; and so much of 
 section three thousand two hundred and forty-four of the 
 Revised Statutes of the United States, and acts amend- 
 atory thereof, as are in conflict with this Act, are hereby 
 repealed : 
 
 ^ :]; :{; ;]: H: 
 
 That section thirty-three hundred and sixty-one of the 
 Revised Statutes is hereby repealed. 
 
 Special taxe.? on manufacturers of tobacco imposed by 
 section 701 (a), act of February 24, 1919, see p. 381. 
 
 V 'l.'n* "farmers ^^^^ ^'^^ ^^^^ ^f OctoleT 1, 1890 {26 Stttt., 618), OS 
 
 l-emSved. """"^amended hy sec. 69, act of August 27,189^ {28 Stat., 
 509).'] That all provisions of the statutes imposing re- 
 strictions of any kind whatsoever iipon farmers and 
 growers of tobacco in regard to the sale of their leaf 
 tobacco, and the keeping of books, and the registration 
 and report of their sales of leaf tobacco, or imposing any 
 tax on account of such sales are hereby repealed. 
 
 =tatem'e"nr*bond^ ^^'~'- ^^^^- {^'mended hy sec. U, act of March 1, 1879 
 
 and certificates.' {20 Stat., 327).'] Every person, before commencing, or, 
 if he has alredy commenced, before continuing, the manu- 
 facture of tobacco or snuff, shall furnish, without previous 
 demand therefor, to the collector of the district where 
 
 vo^m ^6*""""* the manu^^AifeedifeJbhp/bftcmSDJ*® on, a statement in dupli- 
 cate, subscribed .under oath, setting forth the place, and 
 
TOBACCO AND SNUFF. 373 
 
 if in a citj', the street and number of the street, where 
 
 the manufacture is to be carried on; the number of 
 
 cutting-machines, presses, snuff-mills, hand-mills; or other 
 
 machines; the name, kind, and quality of the article 
 
 manufactured or proposed to be manufactured ; and when 
 
 the same is manufactured by him as agent for any 
 
 other person, or to be sold and delivered to any other 
 
 person under a special contract, the name and residence 
 
 and business or occvipation of the person for whom the 
 
 said article is to be manufactured, or to whom it is to be 
 
 delivered; and he shall give a bond, to be approved by Bond Form 4o. 
 
 the collector of the district, in the sum of not less than 
 
 ■ two thousand nor more than twenty thousand dollars, 
 to be fixed by the collector of the district, according to 
 the quantum of business proposed to be done by the 
 manufacturer, with right of appeal by the manufacturer 
 to the Commissioner of Internal Revenue in respect to the 
 amount of said bond, conditioned that he shall not engage 
 in any attempt, by himself or by collusion with others, to 
 defraud the government of any tax on his manufactures ; 
 that he shall render truly and completely all the returns, 
 statements, and inventories prescribed by law or regula- 
 tions; that whenever he adds to the number of cutting- 
 machines, presses, snuff-mills, hand-mills, or other mills 
 or machines as aforesaid, he shall immediately give notice 
 thereof to the collector of the district; that he shall 
 stamp, in accordance with law, all tobacco and snuff 
 manufactured by him before he removes any part thereof 
 from the place of manufacture; that he shall not know- 
 
 " ingly sell, purchase, expose, or receive for sale, any manu- 
 factured tobacco or snuff which has not been stamped as 
 required by law; and that he shall comply with all the 
 requirements of law relating to the manufacture of to- 
 bacco or snuff. Additional sureties may be required by 
 the collector from time to time. 
 
 And every manufacturer shall obtain a certificate from certificate 
 the collector of the district, who is hereby directed to issue """ 
 the same, setting forth the kind and number of machines, 
 presses, snuff mills, hand mills, or other mills and ma- 
 chines as aforesaid ; which certificate shall be posted in a 
 conspicuous place within the manufactory. 
 
 And every tobacco-manufacturer who neglects or re- Penalties, 
 fuses to obtain such certificate, or to keep the same posted 
 as hereinbefore provided, shall be fined not less than one 
 hundred dollars nor more than five hundred dollars. And 
 every person who manufactures tobacco or snuff of any 
 description without first giving bond, as herein required, 
 shall be fined not less than one thousand dollars nor more 
 than five thousand dollars, and imprisoned for- not less 
 than one nor more than five j^ears. 
 
 The liability of the sureties on the bond of a niamvriu'- 
 tiirer of tobacco, given in pursuance of this section, does not 
 
 facture?**" ^^^ "'"'^f^'^d'h^'^lcMmfi® "^ ^"^''^ "'^""- 
 
374 TOBACCO AJSTD SiifUFF. 
 
 No ri<^vi.sion for canceling bonds of manufacturers after 
 they have goue out of busines-^. (T. D. 648.) 
 
 Revenue officers are not required to give notice of the 
 expiration of a manufacturer's " license." It is a matter 
 within his knowledge, and of vvhich he must take notice at 
 his peril. (United States v. Truasdell, 2 Bond, 78; 5 Int. 
 Rev. Rec, 102; Fed. Cas. No. 16, 543.) ' 
 
 The manufacture and sale at retail of cigars and tobacco 
 can not be lawfully carried on at the same time and at the 
 same place. (16 Op. Atty. Gen., 89 ; 24 Int. Rev. Rec, 227.) 
 
 U^e of abbreviation "Co." for "Company" does not 
 invalidate a bond, and a bond so signed is legally binding 
 upon principals and sureties. (T. D. 1660.) 
 
 Bond forms to- be accompanied bv record <!ards. (T. D. 
 2284.) 
 
 u ^'b" mamjtac- ^^^'^ ^^^^- Every manufacturer of tobacco and snuff 
 turer ; penalty sliall place and keep on the side or end of the building 
 for omission. -^yherein his business is carried on, so that it can be dis- 
 tinctly seen, a sign, with letters thereon not less than 
 three inches in length, painted in oil-colors or gilded, 
 giving his full name and business. And every person 
 who neglects to comply with the requirements of this 
 section shall be fined not less than one hundred dollars 
 or more than five hundred dollars. 
 
 Sign must be in English language. (Regulations No. 8, 
 p. 36.) 
 
 manutaXre^rs o1 ^^Ec. 3357. [AmeTided ly sec. 33, act of October 1, 1890 
 tobiacco and^snufl (^£g Stat., 620).'] Every collector shall keep a record, in a 
 collector.'*'' ^ book 01' books providcd for that purpose, to be open to 
 the inspection of only the proper officers of internal reve- 
 nue, including deputy collectors and internal-revenue 
 agents, of the name and residence of every person en- 
 gaged in the manufacture of tobacco or snuff in his dis- 
 trict, the place where such manufacture is carried on, 
 and the number of the manufactory; and he shall enter 
 Record 13. jjj g^a^ record, under the name of each manufacturer, a 
 copy of every inventory required by law to be made by 
 such manufacturer, and an abstract of his monthly re- 
 turns; and he shall cause the sevei'al manufactories of 
 tobacco or snuff in his district to be numbered consecu- 
 tively, which numbers shall not be thereafter changed, 
 except for reasons satisfactory to himself and approved 
 by the Commissioner of Internal Revenue. 
 tor^"o"mamifec- Sec. 3358. Every person now or hereafter engaged in 
 turci. the manufacture of tobacco or snuff shall make and 
 
 deliver to the collector of the district a true inventory, 
 Form 70a. -^^ such fomi as iViSij be prescribed by the Commissioner 
 of Internal Revenue, and verified by his own oath, of the 
 ■ quantity of each of the different kinds of tobacco, snuff- 
 flour, snuff, stems, scraps, clippings, waste, tin foil, 
 licorice, sugar, gum, and other materials held or owned 
 by him on the first day of January of each year, or at the 
 time of commencing and at the time of conclucling busi- 
 ness, if before or after the first of January; setting forth 
 what por(S)^;z©|f |fj'i/J?;(gf^®te®nd materials, and what 
 
TOBACCO AND SNUFF. 375 
 
 kinds were manufactured and produced by him, and 
 what was purchased from others. The collector shall 
 make personal examination of the stock sufficient to 
 satisfy himself as to the correctness of the inventory, 
 and shall verify the fact of such examination by oath, to 
 be indorsed on or affixed to the inventory. 
 
 And every such person shall keep a book or books, the Books, fo™ 
 forms of which shall be prescribed by the Commissioner ^°' ''*• 
 of Internal Revenue, and!^ enter therein daily an accurate 
 account of all the articles aforesaid purchased by him, 
 the quantity of tobacco, snuff, and snuff-flour, stems, 
 scraps, clippings, waste, tin-foil, licorice, sugar, gum, and 
 other material, of whatever description, manufactured, 
 sold, consumed, or removed for consumption or sale, or 
 removed from the place of manufacture in bond, and to 
 what district removed ; also the number of net pounds of 
 lumps of plug tobacco made in the lump room, and the 
 number of packages and pounds thereof produced in the ^ ^^ 
 
 press-room each day. And he shall, on or before the stracts" f o r^m 
 tenth day of each month, furnish to the collector a true ^°- ^^■ 
 and complete abstract from such book, verifying the 
 same by his oath, of all such purchases, sales, and remov- 
 als made during the month next preceding. 
 
 And whenever any such person refuses or willfully Penalty. 
 neglects to. deliver the inventory, or keep the account, or 
 furnish the abstract aforesaid, he shall be fined not less 
 than five hundred dollars nor more than five thousand 
 dollars, and imprisoned not less than six months nor more 
 than three years. 
 
 Case involving the forfeiture of the tobacco factory of 
 C. H. Lilienthal, before Judge Blatchford and a jury. (U. 
 S. district court, southern district of New Yorli ; 1.S Int. 
 Rev. Rec., 158.) 
 
 Returns of manufacturers of tobacco and cigars : A 
 manufacturer may employ, under power of attorney, a per- 
 son to prepare his returns, inventories, etc., but the returns 
 and inventories must be verified by the oath of the manu- 
 facturer. (T. D. 1039, T. D. 1047.) 
 
 Annual inventories. (T. D. 2583.) 
 
 Instructions as to inventory on .January 1, 1920, and 
 verification thereof by collectors or their deputies. (T. D. 
 2955.) 
 
 Instructions to collectors regarding annual inventories 
 to be made by cigar and tobacco manufacturers. (T. Ds. 
 1733, 1895, 2057, 2259, 2390.^ 
 
 Monthly abstracts; form to be u,sed. (T. D. 2057.) 
 
 Sec. 3244. [Sixth subsection, as amended hy sec. 1^ Dealers in leaf 
 act of March 1, 1879 {W Stat. 327), and act of March 3, ° '"° ' " ' 
 1883 {22 Stat. l88). * * * Every person shall be re- 
 garded as a dealer in leaf tobacco whose business it is, 
 for himself or on commission, to sell, or offer for sale, or 
 consign for sale on commission, leaf tobacco. 
 
 Dealers in leaf tobacco shall sell only to other dealers Restriction oi 
 and to manufacturers of tobacco, snuff, or cigars, and to iS'^ieaf'^ tobacco! 
 such persons as are known to be purchasers of leaf to- 
 bacco for export : Digitized by Microsoft® 
 
376 TOB-AGCO AND SNU^F. 
 
 Provided^ It shall be lawful for any licensed manufac- 
 turer of cigars to purchase leaf tobacco of any licensed 
 dealer or other licensed manufacturer in quantities less 
 than the original package, for use in his own manufac- 
 tory exclusively. 
 
 Special-tax provision repealed by section 26. act oi Octo- 
 ber 1, lS9a. 
 
 Special tax again imposed by section 4, act of June 13, 
 1898. (30 Stat, 450.) 
 
 Again repealed by act of April 12, 1902, sec..7 (32 Stat., 
 97). 
 
 Instructions as to dispostion of leaf tobacco on hand 
 April 1,1919. (T. D. 2814.) 
 
 to^'e^Artry™' "' Sec. 26. lAct of OctoleT 1, 1890 {26 Stat., 567) , {Supp. 
 U.S., vol. 1,862).'] * * * Every such dealer in leaf 
 tobacco, * * * manufacturer and peddler shall, 
 however, register with the collector of the district his 
 name, or style, place of residence, trade, or business, and 
 the place where such trade or business is to be carried 
 on, the same as though the tax, had not been repealed, and 
 a failure to register as herein required shall subject such 
 person to a penalty of fifty dollars. 
 
 Penalty for failure' to i-egister (T. D. 854, T. D. 1612).- 
 Begulations as to registry. (T. Ds. 2420, 2485, 2947.) 
 
 Dealers in leaf Qec. 3359. It shall be the duty of any dealer in leaf to- 
 
 tobacco to ren- - . .-I'-i. p i " •' , ^ 
 
 tier statement of bacco, or lu any material used m manufacturing tobacco 
 manded!^''^" ""^ Or sniiff, on denjand of any officer of internal revenue, to 
 render a true and complete statement, under oath, of the 
 quantity and amount of such leaf-tobacco or materials 
 sold or delivered to any person named in such demand, 
 and in case of refusal or neglect to render such statement, 
 or if there is cause to believe such statement to be incor- 
 Rxamiiiation of rect or f raudulcut, the collector shall make an examina- 
 
 ijeisons, books, , - j, i i i • ,1 
 
 ai,d papers. tiou ot persous, books, and papers, m the manner pro- 
 A'ided in relation to frauds and evasions. 
 
 Sections 3173, page 104, and act of August 1.5, 1876, page 
 
 f!S 
 
 d !' rs" bo*"'"" S^^- ^^^^- [Amended hy sec. 704, act of Fehruary 24, 
 1919 {^0 Stat., 1057).] (a) Every dealer in leaf tobacco 
 shall file with the collector of the district in which his 
 business is carried on, a statement in duplicate, subscribed 
 under oath, setting forth the place, and, if in a city, the 
 street and number of the street, where his business is to 
 be carried on, and the exact location of each place whei'e 
 leaf tobacco is held by him on storage, and whenever he 
 adds to or discontinues any of his leaf tobacco storage 
 places, he shall give immediate notice to the collector of 
 the district in which he is registered. 
 
 Every such dealer shall give a bond with surety, satis- 
 Brnds. factory to, and to be approved by, the collector of the dis- 
 
 trict, in wuch penal sum as the collector may require, not 
 less than $.500; and a new bond may be required in the 
 discretion£a^/fttfiC/(iQllMiaHJS!S!iff®nder instructions of the 
 Commissioner. 
 
TOBACCO AND SNUFF. 377 
 
 Every sucli dealer shall be assigned a number by the (^g^"*'"™' """"- 
 collector of the district, which number shall appear in 
 every inventory, in\'oice and report rendered by the dealer, 
 Avho shall also obtain certificates from the collector of the 
 district setting forth the place where his business is car- 
 ried on and the places designated by the dealer as the 
 places of storage of his tobacco, which certificates shall 
 be posted conspicuously within the dealer's registered 
 place of business, and within each designated place of 
 storage. 
 
 (b) Everj' dealer in leaf tobacco shall make and deliver inventories. 
 to the collector of the district a true inventory of the 
 quantity of the different kinds of tobacco held or owned, 
 
 and where stored by him, on the first day of January of 
 each year, or at the time of commencing and at the time 
 of concluding business, if before or after the first day of 
 January, such inventory to be made under oath and ren- 
 dered in such form as may be prescribed by the Com- 
 missioner. 
 
 Every dealer in leaf tobacco shall render such invoices r^/jj. j"'''''' * ""^ 
 and keep such records as shall be prescribed by the Com- 
 missioner, and shall enter therein, day by day, and upon 
 the same day on which the circumstance, thing or act to be 
 I'ecorded is done or occurs, an accurate account of the 
 number of hogsheads, tierces, cases and bales, and quantity 
 of leaf tobacco contained therein, purchased or received 
 by him, on assignment, consignment, for storage, by trans- 
 fer or otherwise, and of whom purchased or received, 
 and the number of hogsheads, tierces, cases and bales, and 
 the quantity of leaf tobacco contained therein, sold by 
 him, with the name and residence in each instance of the 
 person to whom sold, and if shipped, to whom shipped, 
 and to what district; such records shall be kept at his 
 place of business at all times and preserved for a period of 
 two years, and the same shall be open at all hours for the 
 inspection of any internal-revenue officer or agent. 
 
 Every dealer in leaf tobacco on or before the tenth day Reports. 
 of each month, shall furnish to the collector of the district 
 a true and complete report of all purchases, receipts, sales 
 and shipments of leaf tobacco made by him during the 
 month next preceding, which report shall be verified and 
 rendered in such form as the Commissioner, with the ap- 
 proval of the Secretary, shall prescribe. 
 
 (c) Sales or shipments of leaf tobacco by a dealer in leaf ^^^j^ff *"*;*>" ^J ■» 
 tobacco shall be in quantities of not less than a hogshead, ments. ""^ * '^' 
 tierce, case, or bale, except loose leaf tobacco comprising 
 
 the breaks on warehouse floors, and except to a duly 
 registered manuf acture^ of cigars for use in his own 
 manufactory exclusively. 
 
 Dealers in leaf tobacco shall make shipments of leaf ^^^''t^^hom** 
 tobacco only to other dealers in leaf tobacco, to registered 
 manufacturers of tobacco, snuff, cigars or cigarettes, or 
 for export. Digitized by Microsoft® 
 
378 
 
 TOBACCO AKD SlfUFr. 
 
 Tax in case of 
 law violations. 
 
 Penalties. 
 
 Packages des- 
 
 (d) Upon all leaf tobacco sold, removed or shipped by 
 any dealer in leaf tobacco in violation of the provisions of 
 subdivision (c), or in respect to which no report has been 
 made by such dealer in accordance with the provisions of 
 subdivision (b), there shall be levied, assessed, collected 
 and paid a tax equal to the tax then in force upon manu- 
 factured tobacco, such tax to be assessed and collected in 
 the same manner as the tax on manufactured tobacco. 
 
 (e) Every dealer in leaf tobacco 
 
 (1) who neglects or refuses to furnish the statement, to 
 give bond, to keep books, to file inventory or to render the 
 invoices, returns or reports required by the Commissioner, 
 or to notify the collector of the district of additions to his 
 places of storage ; or 
 
 (2) who ships or delivers leaf tobacco, except as herein 
 provided; or 
 
 (3) who fraudulently omits to accoxint for tobacco pur- 
 chased, received, sold, or shipped; 
 
 shall be fined not less than $100 or more than $500, or 
 imprisoned not more than one year, or both. 
 
 (f ) For the purposes of this section a farmer or grower 
 of tobacco shall not be regarded as a dealer in leaf tobacco 
 in respect to the leaf tobacco produced by him. 
 
 Statistics of leaf tobacco, page 394. 
 
 Instructions witli reference to disposition of leaf tobacco 
 on hand April 1, 1919. (T. D. 2814.) 
 
 Begulations as to statement, bond, Inventories, reports, 
 etc. (T. D. 2818.) Scale of penal sums" of bonds revised. 
 (T. D. 2911.) 
 
 Regulations concerning statement and bond to be filed 
 and certificates to be obtained from collector, keeping of 
 books, rendering of inventories, etc. (T. D. 2947.) 
 
 Leaf dealers to report in Book 59 factory numbers of 
 manufacturers to whom sales are made. (T. D. 2025.) 
 
 Sec. 3361. {Repealed.) See page 372. 
 
 Sec. 34. [Act of August 5, 1909 {36 Mat., 110).] That 
 the provisions of sections thirtj^, thirty-one, thirty -two, 
 and thirty-three of this Act shall not take effect until Julj;^ 
 first, nineteen hundred and ten. 
 
 Relates to sections 3362, 3368, 3392, and 3391. 
 
 Sec. 3362. {Ametided hy sec. 30, act of Awgust 5, 1909 
 {36 Stat., 108) , and sec. 700 {b), act of Fehnuiry U, 1919 
 {40 Stat., 1067).'] All manufactured tobacco shall be put 
 up and prepared by the manufacturer for sale, or removal 
 for sale or consumption, in packages of the following de- 
 scription and in no other manner : 
 
 All smoking tobacco, snuff, fine-cut chewing tobacco, all 
 cut and granulated tobacco, all shorts, the refuse of fine- 
 cut chewing, which has passed through a riddle of thirty- 
 six meshes to the square inch, and all refuse scraps, clip- 
 pings, cuttings, and sweepings of tobacco, and all other 
 kinds of tobacco not otherwise provided for, in packages 
 containing one-eighth of an ounce, three-eighths of an 
 ounce, an1P'M«Mrf'^A^ip§/?^th a difference between 
 
TOBACCO AND SNUFF. 3Y9 
 
 each package and the one next smaller of one-eighth of 
 an ounce up to and including two ounces, and further 
 packages with a difference between each package and the 
 one next smaller of one-fourth of an ounce up to and in- 
 cluding four ounces, and packages of five ounces, six 
 ounces, seven ounces, eight ounces, ten ounces, twelve ' 
 
 ounces, fourteen ounces, and sixteen ounces; Provided. 
 That snuff may, at the option of the manufacturer, be put snufr. 
 up in bladders and in jars containing not exceeding twenty 
 pounds. 
 
 All cavendish, plug, and twist tobacco, in wooden pack- ]„*-' ''^^^^"tiut' 
 ages not exceeding two hundred pounds net weight. 
 
 And every such wooden package shall have printed or Marking. 
 marked thereon the manufacturer's name and place of 
 manufacture, the registered number of the manufactorv, 
 and the gross weight, the tare, and the net weight of the 
 tobacco in each package : Provided, That these limitations Exports es- 
 and descriptions of packages shall not apply to tobacco "^^ ^ ' 
 and snuff transported in bond for exportation and actu- 
 ally exported: And provided further, That perique to- ^^^^^^ ^^°l p?; 
 bacco, snuff-flour, fine-cut shorts, the refuse of fiiie cut huiic 'free of tax. 
 chewing tobacco, refuse scraps, clippings, cuttings, and 
 sweepings of tobacco, may be sold in bulk as material, and 
 without the payment of tax, by one manufacturer directlv 
 to another manufacturer, or for export, under such re- 
 strictions, rules, and regulations as the Commissioner of 
 Internal Revenue may prescribe: ATid provided further, ac°°'"e's°^'"'"' °' 
 That wood, metal, paper, or other materials may be used 
 separately or in combination for packing tobacco, snuff, 
 and cigars, under such regulations as the Commissioner 
 of Internal Bevenue may establish. 
 
 Eegulationg. (T. D. 2813.) 
 
 Congress may prescribe any rule or regulation which is 
 not in itself unreasonable, relative t" the manufactui-e find 
 handling of tobacco or cigars. (Felsenheld r. United States, 
 186 U. S., 126, affirming 103 Fed., 453.) 
 
 Tobacco and snuff must be put up by the manufacturer in 
 prescribed packages. (United States i\ 288 Packages of 
 Merry World Tobacco, 103 Fed., 453.) 
 
 Section 3362 was amended by section 14, act of March 1, 
 1879 (20 Stat, 327), and act of .Tanuary 9, 1883 (22 Stat., 
 401), section 3, act of June 13, 1898 (30 Stat., 449). act of 
 .July 1, 1902 (32 Stat., 714), and section 30, act of August 5, 
 19C» (36 Stat., 108). 
 
 Sec. 3a63. [Amended hy sec. 31, ax?t of Octoher 1, 1890 
 {■26 Stat., 667).] No manufactured tobacco shall be sold 
 or offered for sale unless put up in packages and stamped 
 as prescribed in this chapter, except at retail by retail 
 dealers from the packages authorized by section thirty- 
 three hundred and sixty -two of the Revised Statutes: 
 and every person who sells or offers for sale any snuff Tobacco and 
 or any kind of manufactured tobacco not so put up ino"niy°in° pre- 
 packages and stamped shall be fined not less than five ^^^i^''.'^'^ penauy- 
 hundred dollars nor more than five thousanfl dollars,'" 
 
 Digitized by Microsoft® 
 
 , eivception. 
 
380 
 
 TOBACCO AND SXUFF. 
 
 and imprisoned not less than six months nor more thaa 
 two years. 
 
 United States v. Jenkinson, 15 Fed., 903. 
 Caution label, g^c 3364_ [Amended by sec. 5, act of March 3, 1883 
 {22 Stat., 488).] Every manufacturer of tobacco or 
 snuff shall, in addition to all other requirements of this 
 title relating to tobacco, print on each package, or se- 
 curely affix, by pasting, on each package containing to- 
 bacco or snuff manufactured by or for him, a label, on 
 which shall be printed * * * the number of the 
 manufactory, the district and State in which it is situ- 
 ated, and these words : 
 
 Notice. — The manufacturer of this tobacco has complied with 
 all requirements of law. Every person is cautioned, under the 
 penalties of law, not to use this package for tobacco again. 
 
 Penalty. Every manufacturer of tobacco who neglects to print 
 
 on or affix such label to any package containing tobacco 
 made by or for him, or sold or offered for sale by or for 
 him, and every person who removes any such label so 
 affixed from any such package, shall be fined fifty dol- 
 lars for each package in respect to which such offense 
 shall be committed. 
 
 Sec. 3365. {Obsolete.) ' 
 Puiciiasing to- Sec. 3366. Every person who purchases, or receives 
 ed'^'or "°tlm™e"d^; ^^v Sale, any manufactured tobacco or snuff which has 
 penalty. jjQt jjggn branded or stamped according to law, shall be 
 
 liable to a penalty of fifty dollars for each offense. 
 ro^tam manu- ^^'^- ^^^'^- Every person who purchases, or receives for 
 factuier who Sale, any manufactured tobacco or snuff from any manu- 
 Ipcciai'tax. "^"^ f acturer who has not paid the special tax, shall be liable 
 for each offense to a penalty of one hundred dollars, and 
 to a forfeiture of all the articles aforesaid so purchased 
 or received, or of the full value thereof. 
 M^'tfufLtured ^EC. 3368. [Amended by sec. 31, act of August 5, 1909 
 tobacco and {36 Stat., 109).] Upon tobacco and snuff manufactured 
 ''""^' and sold, or removed for consumption or use, there shall 
 
 be levied and collected the following taxes : 
 ''""*• On snuff, manufactured of tobacco or any substitute 
 
 for tobacco, ground, dry, damp, pickled, scented, or 
 otherwise, of all descriptions, when prepared for use, a. 
 tax of eight cents per pound. And snuff flour, when 
 sold, or removed for use or consumption, shall be taxed 
 as snuff, and shall be put up in packages and stamped in 
 the same manner as snuff. 
 tmokiilg"^ ="'' On all chewing and smoking tobacco, fine-cut, caven- 
 dish, plug or twist, cut or granulated, of every descrip- 
 tion; on tobacco twisted by hand or reduced into a con- 
 dition to be consumed, or in any manner other than the 
 ordinary mode of drying and curing, prepared for sale 
 or consumption, even if prepared without the use of any 
 machine or instrument, and without being pressed or 
 sweetened PffiW^^AHMfif©«S^^horts and refuse scraps, 
 
TOBACCO AND SNUFF. 
 
 381 
 
 clippings, cuttings, and sweepings of tobacco, a tax of ^ 
 eight cents per pound. 
 
 This is an excise tax, anil Congress has the power to 
 increase it, at least while the property is held for sale, 
 and before it has passed into tlie hands of the consumer. 
 (Patton V. Brady, 184 U. S., 608; additional tax of 3 cents 
 per pound on tobacco in tlie hands of dealers imposed by 
 sec. 3, act of June 13, 1898). 
 
 Section 3368 was amended by section 30, act of October 
 1, 1890 (26 Stat., 619) ; section 3, act of June 13, 1898 (30 
 Stat., 448) ; section S, act of March 2, 1901 (31 Stat, 939) ; 
 section 3, act of April 12, 1902 (32 Stat, 96) ; and section 
 31, act of August 5, 1909 (36 Stat, 109), in effect July 1, 
 1910. 
 
 Sec. 701. [Act of Fehmary U, 1919 {Jfi Stat., 1067) .] „„^f„|,^,°^ ^l 
 (a) That upon all tobacco and snuff manufactured in oi' snuff manufac- 
 imported into the United States, and hereafter sold by the ported" "'i n "o 
 manufacturer or importer, or removed for consumption united states. 
 or sale, there shall be levied, collected, and paid, in lieu 
 of the internal-revenue taxes now imposed thereon by law, 
 ii tax of 18 cents per pound, to be paid b^' the manufacturer 
 or importer thereof. 
 
 Regulations. (T. D. 2Si:!.) 
 
 Sec. 702. [Act of Febi-uavy 2^, 1919 {Ifi Stat.. 1057).] f'oo"- tax. 
 That upon all the articles enumerated in section * * * 
 701, which were manufactured or imported, and removed 
 from factory or customhouse on or prior to the date of the 
 passage of this Act, and upon which the tax imposed by 
 existing law has been paid, and which are, on the day after 
 the passage of this Act, held by any person and intended 
 for sale, there shall be levied, assessed, collected, and paid 
 a floor tax equal to the difference between (a) the tax im- 
 posed by this Act upon such articles according to the class 
 in which they are placed by this title, and (b) the tax im- 
 posed upon such articles by existing law other than section 
 403 of the Eevenue Act of 1917. 
 
 Returns and inventories of floor stock. (T. D. 2.556.) 
 
 Regulations. (T. D. 2799.) 
 
 Bonds for extending payment. (T. D. 2708.) 
 
 Date of acts buposino tax an tohacco and rates of tax. 
 
 Tol)acco. 
 
 Rate 
 of tax 
 
 per 
 pound. 
 
 Acts impos- 
 ing tax. 
 
 Ac(s repeal- 
 ing tax. 
 
 Length 
 of time 
 rates 
 were in 
 force. 
 
 Smoking, made exclusively of stems 
 
 Cents. 
 2 
 5 
 
 5 
 
 10 
 
 15 
 
 15 
 
 July 1, 1862 
 Mar. 3, 1863 
 
 July 1, 1862 
 
 do... 
 
 do 
 
 Mar. 3, 1863 
 
 Mar. 3, 1863 
 June 30,1864 
 
 do 
 
 Mar. 3, 1803 
 
 do 
 
 June 30,1864 
 
 Months. 
 1 
 
 Smoking, prepared with all the stems 
 
 09 
 
 Cavendish, plug, twist, fine-cut, valued 
 
 at not over 30 cents per pound 
 
 Cavendish, plug, twist, fine-cut, valued 
 
 6 
 6 
 
 Cavendisli, plug, twi.st, fljie-cut, and 
 manufactured tohacco of all descrip- 
 tions, except smoking tobacco 
 
 16 
 
 Digitized by Microsoft® 
 
382 
 
 TOBACCO AND SWTTFF. 
 Date of acts imposing tax on toiacco and rates of tax — ContiDued. 
 
 Tobacco. 
 
 Snufl 
 
 Smoking, made exclusively of stems 
 
 Smoking, prepared with all the stems 
 
 in, and nhe-cut shorts 
 
 Cavendish, plug, twist, etc., and fine- 
 cut chewing 
 
 Snuff 
 
 Twisted by hand 
 
 Smoking, of all kinds, nototherwlse pro- 
 vided for 
 
 Cavendish, plug, t^^TSt, etc., and fine-cut 
 
 chewing 
 
 Snnfl 
 
 Smoking, not sweetened, stemmed, or 
 
 butted 
 
 T%visted by hand, etc., and fine-cut 
 
 shorts 
 
 Smoking, sweetened, stemmed, or 
 
 butted 
 
 Chewing 
 
 Chewing, etc., smoUng, etc., part of the 
 
 stems removed 
 
 Smoking, exclusively of stems, etc 
 
 Snufl 
 
 All kinds, except snufl, cigars, cheroots, 
 
 and cigarettes 
 
 Do 
 
 Do 
 
 Do 
 
 Smoking, and manufactured tobacco 
 
 and snufl 
 
 Manufactured tobacco and snufl 
 
 Do 
 
 Do 
 
 Do 
 
 Do 
 
 Do 
 
 Bate 
 
 of tax 
 
 per 
 
 pound. 
 
 Cents. 
 20 
 15 
 
 6 
 12 
 
 6 
 
 8 
 lOJ 
 13 
 18 
 
 Acts Impos- 
 ing tax. 
 
 July 1, 1862 
 June 30,1864 
 
 ,.;..do 
 
 Acts repeal- 
 ing tax. 
 
 do 
 
 do 
 
 Mar. 3, 1863 
 
 June 30,1854 
 July 13,1866 
 
 Mar. 3, 1865 
 
 .do 
 
 .do 
 
 July 13,1866 
 
 .do., 
 .do.. 
 
 July 20,1868 
 
 do 
 
 do 
 
 June 6, 1872 
 
 Mar. 3, 1875 
 
 Mar. 1, 1879 
 
 Mar. 3, 1883 
 
 Oct. 1, 1890 
 June 13,1898 
 Apr. 12,1902 
 Aug. S,1909 
 Oct. 3, 1917 
 
 do 
 
 Feb. 24,1919 
 
 ..--dp 
 
 ....-dd. , 
 
 July 13,1866 
 
 ..do. 
 
 do 
 
 July 20,1868 
 
 do 
 
 .do- 
 . do- 
 
 June 6, 1872 
 ....do 
 
 Mar. 1, 1879 
 
 Mar. 3, 1875 
 
 Mar. 1, 1879 
 
 Mar. 3, 1883 
 
 Oct. 1,1890 
 
 June 13,1898 
 Apr. 12,1902 
 Aug. 6,1909 
 Oct. 3, 1917 
 Feb. 24,1919 
 do 
 
 I/Cngth 
 of time 
 
 rates 
 were in 
 
 force. 
 
 Monitis. 
 22 
 25 
 
 9 
 16 
 
 16 
 40 
 
 24 
 
 24 
 24 
 
 47 
 
 47 
 
 129 
 
 32 
 60 
 48 
 91 
 
 90 
 49 
 96 
 86 
 16 
 15 
 
 The acts relating to the tax on manufactured tobacco and 
 snuff went into operation immediately on their passage, 
 except the following: Act of March 3, 1865, took effect 
 April 1, 1865; act of July 13, 1866, took effect August 1, 
 1866; act of June 6, 1872, took effect July 1, 1872; act 
 of Jlarch 1, 1879, took effect May 1, 1879; act of March 
 3, 1883, took effect May 1, 1883 (Rep. Com. Int. Rev., 
 1888, p. 136) ; act of October 1, 1890, took effect January 
 1, 1891; act of June 13, 1898, took effect .Tune 14, 1898; 
 act of March 2, 1901, which took effect July 1, 1901, al- 
 lowed 20 per cent discount on all sales of tobacco and 
 snuff stamps, virtually making rate 9.6 cents ; act of April 
 12, 1902, took effect July 1, 1902; act of Ausjust 5, 1909, 
 .took effect July 1, 1910; act of October 3, 1917, took effect 
 October 4, 1917, with respect to the half additional tax (104 
 cents per pound), and November 2,. 1917, with respect to the 
 full additional tax (13 cents per pound) ; and act of Febru- 
 ary 24, 1919, became effective February 2.5, 1919. 
 
 The tax on manufactured tobacco and snuff first re- 
 quired to be paid by stamps. (Act of July 20, 1868.) 
 
 Stamps not of money value were required to be affixed 
 by inspectors previous to that time. (Act of Mar. 3, 1865.) 
 
 The term " granulated tobacco " not synonymous with 
 "snuff." (Venable v. Richards, 105 U. S., 636; 28 Int. 
 Rev. Rec, 162 ; afhraiing 1 Hughes, 326 ; 22 Int. Rev. Rec, 
 299.) 
 
 Tol:£]W^/ftoyiged/\A-gdQTOjm@ed in forenoon of March 3, 
 1875, wmie ffie act of thiit date whldi increase,! tlie tax to 
 
TOBACCO AND SNUFF. 38S 
 
 24 ceats per peund was signed hi the afternoon. The in- 
 crease of tax did not apply in that case. (Burgess v. 
 Salmon, &7 U. S., 381; 25 Int. Eev. Rec, 81; affirming 1 
 Hughes 356; 21 Int. Rev. Rec, 333.) 
 
 Manufactured tobacco shipped in bond from the manu- 
 factory and stored in an export bonded warehouse on the 
 14th of June, 1872, was subject to the tax of 32 cents per 
 pound prescribed by the internal-revemie act of July 20, 
 1868. (Jones v. Blackwell, 100 U. S., 599; 26 Int. Rev. 
 Rec, 114; 14 Op. Atty. Gen., 110; 16 Int. Rev. Rec, 77.) 
 
 Section 4. of "An act to repeal war revenue taxation, and 
 for other purposes," approved April 12, 1902, provided for 
 rebate of tax on tobacco held by manufacturers or dealers 
 on which the higher rate liad been paid. (Hyams v. 
 United States, 139 Fed., 997; 146 Id., 15.) 
 
 The rules and regulations prescribed by the Commis- 
 sioner were authorized and were not unreasonable. 
 (PoweU V. United States, 135 Fed., 881.) 
 
 Sec. 3369. The Commissioner of Internal Revenue j.^,*'*^'"]'^' l;"" 
 shall cause to be prepared suitable and special stamps for nlshX and soil' 
 the payment of the tax on tobacco and snuff, which shall 
 indicate the weight and class of the article on which pay- 
 ment is to be made, and shall be affixed and canceled in 
 the mode prescribed by the Commissioner of Internal 
 Eevenue, and stamps when used on any wooden package 
 shall be canceled by sinking a portion of the same into 
 the wood with a steel die, and also such export-stamps as 
 are required by law. Such stamps shall be furnished 
 to the collectors requiring them, and each collector shall 
 keep at all times a supply equal in amount to three 
 months' sale thereof, and shall sell the same only to the 
 manufacturers of tobacco and snuff in their respective 
 districts who have given bonds as required by law, and 
 to owners or consignees of tobacco or snuff, upon the 
 requisition of the proper custom-house officer having the 
 custody of such tobacco or snuff ; and to persons required 
 by law to affix the same to tobacco or snuff on hand on 
 the first day of January, eighteen hundred and sixty- 
 nine. And every collector shall keep an account of the 
 number, amount, and denominate values of stamps sold 
 by him to each manufacturer or other person aforesaid : 
 
 Provided^ That such stamps as may be required to stamping for- 
 stamp tobacco, snuff, or cigars, sold under distraint by sfmlf or dsars"' 
 any collector of internal revenue, or for stamping any 
 tobacco, snuff, or cigars which may have been abandoned, 
 condemned, or forfeited, and sold by order of court or 
 of any Government officer for the benefit of the United 
 States, may, under such rules and regulations as the Com- 
 missioner of Internal Revenue shall prescribe, be used 
 by the collector making such sale, or furnished by a col- 
 lector to a United States marshal, or to any other Gov- 
 ernment officer making such sale for the benefit of the 
 United States, without making payment for said stamps 
 so used or delivered ; and any revenue collector using or 
 furnishing stamps in manner as aforesaid, on present- 
 ing vouchers satisfactm^^. to . the^ommisaioner of In- 
 
384 -TOBACCO AND SNUFF. 
 
 ternal Eevenue, shall be allowed credit for the same in 
 settling his stamp account with the Department: 
 «imiabie''"''t'o°-' ■^'"^ provided further, That in case it shall appear 
 hacco and ci- that any abandoned, condemned, or forfeited tobacco, 
 ^''^^' snuff, or cigars, when offered for sale, will not bring a 
 
 price equal to the tax due and payable thereon, such 
 goods shall not be sold for consumption in the United 
 States; and upon application made to the Commissioner 
 of Internal Revenue, he is authorized and directed to 
 order the destruction of such tobacco, snuff, or cigars by 
 the officer in whose custody and control the same may be 
 at the time, and in such manner and under such regula- 
 tions as the Commissioner of Internal Revenue may pre- 
 scribe. 
 
 As to power to establish, alter, or change stamps, etc., see 
 st>etions 3445 and 3446 as amended, page 589. 
 
 As to stamps on tobacco sold on distraint, etc., section 
 3458, page 597. 
 
 Tobacco used as samples must be stamped. (23 Int Rev. 
 Bee, 29.) 
 
 As to the issue of duplicate stamps for restamping pack- 
 ages of tobacco from which the stamps have been lost 
 or destroyed by accident, see sec. 3315, R. S., p. 270. 
 
 The term "tax," as used in the last proviso of section 
 3369, is not intended to include import duties ; and ciga- 
 rettes, when forfeited, may be gold and delivered when they: 
 bring enough to pay the internal-revenue tax, although they 
 may not bring enough to pay that and the customs duties. 
 (United States v. 59 Demijohns Aguadiente and Four Bar- 
 rels of Cigarettes, 39 Fed., 401.) See Department Circular 
 No. 34; T. D. 18984.) 
 
 Amending Regulations permitting cancellation of tobacco, 
 snuff, cigar, and cigarette stamps by perforation, at option 
 of manufacturer. (T. D. 1818.) 
 
 Tobacco manu- Sec. 3370. Whenever tobacco or snuff of any descrip- 
 ^^a^n lor an- tion is manufactured, in whole or in part, upon commis- 
 "hares ""stamps" ^^^^ ^^ shares, or the material from w^hich any such arti- 
 ijy whom affixed j" cles are made, or are to be made, is furnished by one 
 fraud in sue pg^g^j^ j^jj^ made and manufactured by another, or the 
 material is furnished or sold by one person with an under- 
 standing or agreement with another that the manufac- 
 tured article is to be received in payment therefor or 
 for any part thereof, the stamps required by law shall be 
 affixed by the actual maker or manufacturer before the 
 article passes from the place of making or manufacturing. 
 And in case of fraud on the part of either of said persons 
 in respect to said manufacture, or of any collusion on 
 their pait with intent to defraud the revenue, such ma- 
 terial and manufactured articles shall be forfeited -to the 
 United S^tates; and each party to such fraud or collusion 
 Penalty. shall be deemed guilty of a misdemeanor, and be fined 
 
 not less than one hundred dollars nor more than five 
 thousand dollars, and imprisonment for not less than six 
 months nor more than three years. 
 tax^'mr'tobacco' ^^^- ^^'^^- [^''nended hy sec. U, act of March 1, 1879 
 MmB, and cigars (£0 Stat.jQ^^j^^ bj^l^fSf&^ftW^J manufacturer of to- 
 stamji-,'' '"*™* bacco, snun, or cigars, sells, or removes for sale or con- 
 
 cases. 
 
TOBACCO AND SNUFF. 386 
 
 sumption, any tobacco, snuff, or cigars, upon which a tax 
 is required to be paid by stamps, without the use of the 
 proper stamps, it shall be the duty of the Commissioner of 
 Internal Eevenue, within a period of not more than two 
 years after such sale or removal, upon satisfactory proof, 
 to estimate the amount of tax which has been omitted 
 to be paid, and to make an assessment therefor, and cer- 
 tify the same to the collector. The tax so assessed shall 
 be in addition to the penalties imposed by law for such 
 sale or removal : Provided, however. That no such assess- 
 ment shall be made until and after notice to the manu- 
 facturer of the alleged sale and removal to show cause 
 against said assessment; and the Commissioner of In- 
 ternal Revenue shall, upon a full hearing of all the evi- 
 dence, determine what assessment, if any, should be made. 
 
 It is estimated that 25 pounds of leaf tobacco will make 
 1,000 cigars. (Regulations, No. 8, Rev., p. 58.) 
 
 Authority of Commissioner under the provisions of sec- 
 tions 3371 and 3396 to examine returns of cigar manufac- 
 turers and to treat deficiency in product based on the return 
 of 1,000 cigars for every 25 pounds of tobacco as prima 
 facie evidence of nonpayment of taxes. (United States v. 
 -\ppel and Katencamp, 22 Int. Rev. Rec, 169 ; Fed. Cas. No. 
 14,462.) 
 
 Sec. 3372. Every manufacturer of tobacco or snuff who Hemoving un- 
 removes, Otherwise than as provided by law, or sells, with- wWioUt ' stampl 
 out the proper stamps denoting the tax thereon, or with- "^^^ ''Yr'"''g*iving 
 out having paid the special tax or given bond as required bond, making 
 by law, any tobacco or snuff, or who makes false and *^''° *"*"^' '*"" 
 fraudulent entries of manufactures or sales of tobacco or 
 snuff, or makes false or fraudulent entries of the purchase 
 or sales of leaf -tobacco, tobacco stems, or other material, 
 or who affixes any false, forged, fraudulent, spurious, or 
 counterfeit stamp, or imitation of any stamp, required 
 by law, or any stamp required by law which has been pre- 
 viously used, to any box or package containing any 
 tobacco or snuff, shall in addition to the penalties else- 
 where provided by law for such offenses, forfeit to the Forfeiture. 
 United States all the raw material and manufactured or 
 partly manufactured .tobacco and snuff, and all ma- 
 chinery, tools, implements, apparatus, fixtures, boxes, and 
 barrels, and all other materials which may be found in 
 his possession, in his manufactory, or elsewhere. 
 
 The tobacco is forfeited for fraud of the manufacturer in 
 the possession of an innocent purchaser. (United States v. 
 800 Caddies of Tobacco, 2 Bond 305; Fed. Cas. No. 15036.) 
 
 Raw material intended for fraudulent manufacture may 
 be seizied for forfeiture wherever found. (United States v. 
 16 Hogsheads Tobacco, 2 Bond 137; Fed. Cas. No. 16302.) 
 
 Sale of tobacco from original stamped packages. (T. D. 
 720.) 
 
 Sec. 3373. The absence of the proper stamp on any gj^'^^''^^'J^^<=^^°' 
 package of manufactured tobacco or snuff shall be notice dence of nonpay- 
 to all persons that the tax has not been paid thereon, and "™'' 
 
 i4oi84°-2o ^^Digitized by Microsoft® 
 
386 TOBACCO AND SNUFF. 
 
 shall be prima-f acie evidence of the non-payment thereof. 
 Forfeiture. ^j^ g^^^ tobacco or snuff shall be forfeited to the United 
 States. 
 
 ■ United States v. Keyes (10 Fed., 87^ >. 
 United States v. 117 Packages of Plug Tobacco (10 Ben., 
 343; Fed. Cas. No. 15936). 
 Quantify of Tobacco (5 Ben., 407; 20 Fed. Oas. No. 11500). 
 
 cep^^"in""propep Sec. 3374. Everj person who removes from any manu- 
 p?ci< ages, or factorjr, or froRi anyplace where tobacco or snuff is made, 
 Sling uSwI any manufactured tobacco or snuff without the same being 
 fully, etc. p^j yp |j^ proper packages, or without the proper stamp 
 
 for the amount of tax thereon being affixed and canceled, 
 as required by law ; or, if the same be intended for export, 
 without the proper export stamp being affixed; or who 
 uses, sells, or offers for sale, or has in possession, except 
 in the manufactory, or while in transfer under bond or a 
 collector's permit, from any manufactory^ store, or ware- 
 house, to a vessel for exportation to a foreign country, any 
 manufactured tobacco or snuff, without proper stamps 
 for the amount of tax thereon being affixed and canceled ; 
 or who sells, or offers for sale, for consumption in the 
 United States, or uses,"or has in possession, except in the 
 manufactory, or while in transfer under bond or a collec- 
 tor's permit, from any manufactory, store, or warehouse, 
 to a vessel for exportation to a foreign country ,'any manu- 
 factured tobacco or snuff on which only the stamp mark- 
 ing the same for export has been affixed, shall for each 
 Penalty. such offcnse, respectively, be fined not less than one 
 
 thousand dollars nor more than five thousand dollars, 
 and be imprisoned not less than six months nor more 
 than two years. 
 Affixing false Sec. 3375. Every person who affixes to any package 
 bef^r Swd.^^^ containing tobacco or snuff any false, forged, fraudulent, 
 spurious, or counterfeit stamp, or a stamp which has 
 been before used, shall be deemed guilty of a felony, and 
 Penalty. shall be fined not less than one thousand dollars nor more 
 
 than five thousand dollars, and imprisoned not less than 
 B on ^^^ years nor more than five years. 
 emptied pack- Sec. 3376. Whenever any stamped box, bag, vessel, 
 Btroyed" buying^ Wrapper, or envelope of any kind, containing tobacco or 
 selling, oi' snuff, is emptied, the stamp or stamps thereon shall be 
 uHng s m . destroyed by the person in whose hands the same may be. 
 Penalty. And cvery person who willfully neglects or refuses so to 
 
 do shall, for each such offense, be fined fifty dollars, and 
 imprisoned not less than ten days nor more than six 
 months. And every person who sells or gives away, or 
 who buys or accepts from another any such empty stamped 
 box, bag, vessel, wrapper, or envelope of any kind, or 
 the stamp or stamps taken from any such empty box, 
 bag, vessel, wrapper, or envelope of any kind, shall, for 
 each such offense, be fined one hundred dollars, and im- 
 prisoned for not less than twenty days and not more 
 than one y^f^^y^g^^j^^r^v m^f acturer or other person 
 
to- 
 bacco and snuff. 
 
 . TOBACCO AND SNUFF. 387 
 
 who pats tobacco or snuff into any such box, bag, vessel, 
 wrapper, or envelope, the same having been either emptied, 
 or partially emptied, or who has in his possession, or affixes 
 to any box or other package, any stamp which has been 
 previously used, or who sells, or offers for sale, any box 
 or other package of tobacco, snuff, or cigars, Tiaving 
 affixed thereto any fraudulent, spurious, imitation, oi' 
 counterfeit stamp, or stamp that has been previously 
 used, or sells from any such fraudulently stamped box 
 or packagej or has in his possession any box or package 
 as aforesaid, Imowing the same to be fraudulently 
 stamped, shall, for each such offense, be fined not less 
 than one hundred dollars nor more than five hundred 
 dollars, and imprisoned for not less than onfe year nor 
 more than three years. 
 
 See section 3455, page 596. 
 
 Duty to destroy stamps. (United States v. Don Kee, 192 
 Fed., 733.) 
 
 Sec. 3377. [AmeTided hy sec. 14, act of March 1, 1879 ^,J^Pf^f 
 (W Stat., 327).'] All manufactured tobacco and snuff 
 (not including cigars) imported from foreign countries, 
 shall, in addition to the import duties imposed on the 
 same, pay the tax imposed by law on like kinds of to- 
 bacco and snuff manufactured in the United States, and 
 have the same stamps respectively affixed. Such stamps 
 shall be affixed and canceled on all such articles so im- 
 ported by the owner or importer thereof, while they are 
 in the custody of the proper custom-house officers, and 
 such articles shall not pass out of the custody of said 
 officers until the stamps have been affixed and canceled. 
 Such tobacco and snuff shall be put up in packages, as 
 prescribed by law for like articles manufactured in the 
 United States before the stamps are affixed; and the 
 owner or importer' shall be liable to all the penal pro- 
 visions prescribed for manufacturers of tobacco and 
 snuff manufactured in the United States. Whenever it 
 is necessary to take any such articles, so imported, to 
 any place for the purpose ^ of repacking, affixing, and 
 canceling such stamps, other than the public stores of 
 the United States, the collector of customs of the port 
 where they are entered shall designate a bonded ware- 
 house to which they shall be taken, under the control of 
 such customs officers as he may direct. And every officer 
 of customs who permits any such articles to pass out of 
 his custody or control without compliance by the owner 
 or importer thereof with the provisions of this section 
 relating thereto, shall be deemed guilty of a misde- 
 meanor, and shall be fined not less than one thousand 
 dollars nor more than five thousand dollars, and impris- 
 oned not less than six months nor more than three years : 
 Provided, That scraps, cuttings, and clippings of tobacco imported 
 imported from any foreign country may, after the proper an'd^ciipph'gs"*?! 
 customs duty has been paid thereon, be withdrawn in tobacco. 
 Digitized by Microsoft® 
 
388 TOBACCO AND SNUFF. 
 
 bulk without the payment of the internal-revenUe tax, 
 and transferred as material directly to the factory of a 
 manufacturer of tobacco or snuff, or of a cigar manu- 
 facturer, under such restrictions and regulations as shall 
 be prescribed by the Commissioner of Internal Kevenue 
 and approved by the Secretary of the Treasury. 
 
 Sale of internal-revenue stamps for tax payment of im- 
 ported tobacco, snufE, etc. (T. D. 2500.) 
 
 Sec. 3378. (Obsolete.) Tobacco deemed as having been 
 manufactured after July twentieth, eighteen hundred 
 and sixty-eight. 
 
 Sec. 3379. (Obsolete.) Relates to tobacco, snuff, and 
 cigars manufactured between July 20, 1868, and Novem- 
 ber 28, 1883. 
 
 Sec. 3380. (Obsolete.) Selling tobacco falsely repre- 
 sented to be made and tax paid before July 20, 1868. 
 Peddlers of to- Sec. 3244. [Amended. Eleventh sub -section.'] Any 
 person who sells or offers to sell and deliver manufac- 
 tured tobacco, snuff, or cigars, traveling from place to 
 place, in the town or through the country, shall be re- 
 garded as a peddler of tobacco : Provided, That manuf ac- 
 39 Stat., 740. turers of, jobbers, and wholesale dealers in manufac- 
 tured tobacco, snuff, cigars, and cigarettes, and the agents 
 or salesmen of such manufacturers, jobbers, and whole- 
 sale dealers, traveling from place to place, in the town or 
 through the country, and selling and delivering or offer- 
 ing to sell and deliver such products only to dealers, 
 shall not be construed to be peddlers. 
 
 Under existing law peddlers of tobacco are not required 
 to pay special tax. 
 
 ^jeddiers of to- gj,^._ 2,2,%i_ [Amended by sec. £8, act of October 1, 1890 
 (26 Stat., 618)']. Every peddler of tobacco, before com- 
 mencing, or, if he has already commenced, before con- 
 tinuing to peddle tobacco, shall furnish to the collector 
 
 P^^t^jt «>"«"'• of his district a statement accurately setting forth the 
 place of his residence, and, if in a city, the street and num- 
 1)er of the street where he resides, the State or States 
 through which he proposes to travel; also whether he 
 proposes to sell his own manufactures or the manufac- 
 tures of others, and, if he sells for other parties, the person 
 Bond. Form fgr whom he sells. He shall also give a bond in the sum 
 of five hundred dollars, to be approved by the collector of 
 the district, conditioned that he shall not engage in any 
 attempt, by himself or by collusion with others, to de- 
 fraud the Government of any tax on tobacco, snuff, or 
 cigars; that he shall neither sell nor offer for sale any 
 tobacco, snuff, or cigars, except in original and full pack- 
 ages, as the law requires the same to be put up and pre- 
 pared by the manufacturer for sale, or for iremoval for 
 sale or consumption, and except such packages of tobacco, 
 snuff, and cigars as bear the manufacturer's label or 
 caution notice; and his legal marks and brands, and 
 Digitized by Microsoft® 
 
 111 
 
TOBACCO AND SNUFF. 389 
 
 genuine internal-revenue stamps which have never before 
 been used. 
 
 Sec. 3382. Every peddler of tobacco, snuff, or cigars, bacTO^'"?rlve'iing 
 traveling with a wagon, shall affix and keep on the same, with wajon. 
 in a conspicuous place, a sign painted in oil-colors, or 
 gilded, giving his full name, business, and collection dis- 
 trict. 
 
 Sec. 3383. [Amended hy sec. 29, act of October i, 1890 ^Zf^]^i^Jt^ 
 {%6 Stat., 618)]. Every peddler of tobacco shall obtain a certificate, etc 
 certificate from the collector of his collection district, 
 who is hereby authorized and directed to issue the same, 
 giving the name of the peddler, his residence, and the fact 
 of his having filed the required bond ; and shall on- de- 
 mand of any officer of internal revenue produce and ex- 
 hibit his certificate. And whenever any peddler refuses 
 to exhibit his certificate, as aforesaid, on demand of any 
 officer of internal revenue, said officer may seize the 
 horse or mule, wagon, and contents, or pack, bundle, or 
 basket, of any person so refusing ; and the collector of the 
 district in which the seizure occurs may, on ten days' 
 notice, published in any newspaper in the district, or 
 served personally on the peddler, or at his dwelling- 
 house, require such peddler to show cause, if any he has, 
 Avhy the horses or mules, wagons, and contents, pack, 
 bundle, or basket so seized shall not be forfeited. In case Forfeiture. 
 no sufficient cause is shown, proceedings for the forfeiture 
 of the jjroperty seized shall be taken under the general 
 l^rovisions of the internal-revenue laws relating to for- 
 feitures. Any internal revenue agent may demand pro- 
 duction of and inspect the collector's certificate for ped- 
 dlers, and refusal-or failure to produce the same, when so 
 demanded, shall subject the party guilty thereof to a fine p^„^ny 
 of not more than five hundred dollars and to imprison- 
 ment not more than twelve months. 
 
 Sec. 3384. \_Am,ended hy sec. IS, act of March 1, 1879 peddung t o - 
 {20 Stat., 346).] Every person who is found peddling ^ = ."^^ "p^^^^j'^^"- 
 tobacco, snuff, or cigars, without having given the bond, 
 or without having previously obtained the collector's 
 certificate as herein provided, or who sells tobacco, snuff, 
 or cigars otherwise than in original and full packages as 
 put up by the manufacturer ; or who has in his possession 
 any internal-revenue stamp which has been removed from 
 any box or other package of tobacco, snuff, or cigars, or 
 any empty or partially emptied box or other package 
 which has been used for tobacco, snuff, or cigars, the 
 stamp or stamps on which have not been destroyed; or 
 who fails to have affixed to his wagon, in a conspicuous 
 place, a sign, painted in oil colors, or gilded, giving his 
 full name, business, and collection district, shall, for each 
 such offense, be fined not less than one hundred dollars 
 nor more than five hundred dollars, or imprisoned not less 
 tlian six months nor more than one year, or both, at the 
 discretion of the court. And any collector or deputy col- 
 Digitized by Microsoft® 
 
390 TOBACCO Aifl> SKTJFF. 
 
 l«etor finding suck peckller it> llie aet of affending as to 
 either of the offenses mentioned in this section, may seize 
 the horse or horses, mule or muies, wagon and contents, 
 or pack, bundle, or basket, of any such person ; and the 
 collector shall thereupon proceed upon such seizure as 
 provided in section thirty-three hundred and eighty- 
 three. 
 
 Sec. 33SS. [Amended ly act of Jwrn 9, 1880 {21 Stat., 
 167) ; amended and re-enacted iyy act of AugvM 8, 1882 
 {28 Stat.y S72) ; and amended hy act of January 13, 1883 
 Exportation of {22 Stot., 402).'] Manufactured tobacco, snuff, and 
 ta^co.'^etr^*^ *"" cigars intended for immediate exportation may, after be- 
 ing-properly inspected, marked, and branded, be removed 
 from the manufactory in bond without having affixed 
 thereto the stamps indicating the payment of the tax 
 thereon. The i-emoval of such tobacco, snuff, and cigars 
 from the manufactory shall be made under such regula- 
 tions, and after making such entries, and executing and 
 filing with the collector of the district from which the re- 
 moral is. to be made such bonds and bills of lading, and 
 giving such other additional security as may be pre- 
 scribed by the Commissioner of Internal Revenue and 
 approved by the Secretary of the Treasury. There shall 
 be affixed to each package of tobacco, snuff, and cigars 
 intended for immediate export, before it is removed from . 
 the manufactory^ an engraved stamp indicative of such 
 Export stamps, intention. Such stamp shall be provided and furnished 
 to the several collectors as in the case of other stamps, and 
 they shall account for the use of the same. When the 
 manufacturer has made the proper entries, filed the 
 bounds, and otherwise complied with the requirements of 
 law and the regulations as herein provided.^ the collector 
 shall issue to him a permit for the removal, accurately 
 describing the tobacco, snuff, and cigars, to be shipped, 
 the number and kinds of packages, the number of pounds, 
 the marks and brands, the State and collection district 
 from which the same are shipped,, the number of the 
 manufactory and the manufacturer's name, the port from 
 which the said tobacco, snuff, and cigars are to be ex- 
 ported, and the route or routes over which the same are 
 to be sent to the port of shipment. Upon the presenta- 
 tion to the collector of internal revenue of a detailed re- 
 port from the inspectors of customs, and a certificate of 
 the collector of customs at the port from which the goods 
 are to be exported that the goods removed from the 
 manufactory under bond and described in the permit of 
 the collector of customs at the port from which the goods 
 the said collector of customs, and that the said goods 
 were duly laden on board of a foreign-bound vessel, 
 naming the vessel, and that the said merchandise was en- 
 tered on the outward manifest of said vessel, and that the 
 said vessel and cargo were duly cleared from said port, 
 and on th^^in^^^o|ythe^t^^)r deficiency, if any, the 
 
TOBACCO AND SNUFF. 391 
 
 bonds, which have been given or shall hereafter be re- 
 quired to be given under the provisions of this section 
 shall be canceled. But when the goods are exported cancellation ot 
 to an adjacent foreign territory, by vessel or otherwise, •'"^''^^j g, j^„ 
 said bonds shall be canceled upon such proofs of exporta- 13. isss. 
 tion as may be prescribed by the Coinmission'er of In- 
 ternal Revenue, with the approval of the Secretary of the 
 Treasury. 
 
 Every person who, with the intent to defraud the reve- landtn^^oblccn 
 nue laws of the United States, relands or causes to be shipped for ex- 
 relanded within the jurisdiction of the United States any p'"''' 
 manufactured tobacco, snuff, or cigars which have been 
 shipped for exportation under the provisions of this act, 
 without properly entering such tobacco, snuff, or cigars 
 at the custom-house, and paying the proper customs and 
 internal revenue tax thereon, or who receives such re- 
 landed tobacco, snuff, or cigars, and every person who 
 aids or abets in such relanding or receiving such tobacco, 
 snuff or cigars, shall, on conviction, be fined not exceeding , 
 five thousand dollars, or imprisoned not more than three 
 years, and all tobacco, snuff, or cigars so relanded shall be 
 forfeited to the United States. 
 
 See on this section United States v. Allen, 30 Fed.. 100 ; 
 Ryan v. United States, 19 Wall., 514. 
 
 Section 606 of the act of Februarj' 24, 1919, give.s the 
 Oommlssloner, with the approval of the Secretary, authority 
 to discontinue the use of export stamps. 
 
 The only substantial change from the amended section 
 made by the act of August 8, 1882, was striking out the 
 following words relating to the export stamp : "And for the 
 expense attending the providing and affixing thereof ten 
 cents for each package so stamped shall be paid to the col- 
 lector on making the entry for such transportation." 
 
 Requirement that the exportation stamp be affixed to 
 pac'kages of tobacco intended for exportation declared con- 
 stitutional. (Place V. Burgess, 92 V. S., 372; 22 Int. Rev. 
 Rec., 145. Decision affirmed in Turpin v. Burgess, 117 U. S., 
 504; 32 Int. Rev. Rec, 119.) 
 
 Persons proposing to manufacture tobacco and cigars ex- 
 clusively for export required to qualify both as manufac- 
 turers of tobacco and as cigar manufacturers. Tobacco, 
 cigars, and cigarettes manufactured exclusively for export 
 may be packed in such quantity and in such kind of pack- 
 age's as desired. (T. D. 19124.) 
 
 Sec. 24. [Act of Felmary 8, 1875 {18 Stat, 307).] „f O'J.a"™ fo? ex- 
 That whenever any manufacturer of tobacco shall desire portation, trans- 
 to withdraw the same from his factory for exportation may''be°take°n" '^ 
 under existing laws, such manu:^acturer may, at his op- 
 tion, in lieu of executing an export bond, as now provided 
 by law, giA'e a transportation bond, with sureties satis- 
 factory to the collector of internal revenue, and under 
 such rules and regulations as the Commissioner of Internal 
 Revenue, with the approval of the Secretary of the Treas- 
 ury, may prescribe, conditioned for the due delivery 
 thereof on board ship at a port of exportation to be named 
 therein ; and in such case, on arrival of the tobacco at the 
 port of export, the ^^f^^^Sl^WSM^fi^^^ P"''* '^^^^ 
 
392 
 
 TOBACCO ANB SNUFF. 
 
 iector"o£ p^ort"^' immediately notify the collector of the port of the fact, 
 setting forth his intention to export the same, the name of 
 ' the vessel upon which the same is to be laden, and the port 
 to which it is intended to be exported. He shall, after the 
 quantity and description of tobacco have been verified by 
 Export entry, ^j^p inspector, file Avith the collector of the port an export 
 Export bond, gj^tpy verified by affidavit. He shall also give bond to 
 the United States, with at least two sureties, satisfactory 
 to the collector of customs, conditioned that the principal 
 named in said bond will export the tobacco as specified in 
 said entry, to the port designated in said entry, or to 
 some other port without the jurisdiction of the United 
 States. And upon the lading of such tobacco, the collec- 
 tor of the port, after proper bonds'for the exportation of 
 the same have been completed by the exporter or owner at 
 the port of shipment thereof, shall transmit to the col- 
 lector of internal revenue of the district from which the 
 ciareaiicc eer- g^^^ tobacco was withdrawn for exportation, a clearance 
 
 tiDcate and in- , • n , i 1^.11 p t • t«i 
 
 specter's report. Certificate and a detailed report oi the inspector; which 
 report shall show the quantity and description of manu- 
 factured tobacco, and the marks thereof. Upon the 
 receipt of the certificate and report, and upon payment of 
 Ciinceiiationof tax ou deficiency, if any, the collector of internal revenue 
 
 bond?"^"*^*'"" shall cancel the' transportation bond. 
 
 ex *iirrbon*d'°" °' "^^^ bonds required to be given for the landing at a f or- 
 
 expor on . Qign port of such manufactured tobacco shall be canceled 
 upon the presentation of satisfactory proof and certificates 
 that said tobacco has been landed at the port of destina- 
 tion named in the bill of lading, or any other port without 
 the jurisdiction of the United States, or upon satisfactory 
 proof that after shipment the same was lost at sea without 
 fault or neglect of the owner or exporter thereof. 
 
 As bonds given xinUer section 338.5, iis Eiraended, are can- 
 celed on proof of clearance of the articles tlierein named 
 for a foreign country, exporters do not now avail them- 
 selves of the provisions of this section. 
 
 Exportation by parcel post. (Recculations Xo. 29, Supp. 
 No. 1; T. D. 1S34; T. D. 18.58.) 
 
 To constitute exportation the ownei- of goods sliould in- 
 tend that they should not only be^landed in a foreign port, 
 but that they should enter into tlie commerce of some for- 
 eign country. (27 Op. Atty. Gen., 113; see also T. D. 36, 
 932.) 
 
 autho'rf^d^"""' Sec. 1. [Act of Augmt 4,iS86 (£i/Stat.,21S).] That 
 orize . manufactured tobacco, snuff, and cigars may be removed 
 
 for export to a foreign country without payment of tax, 
 under such regulations, and the making of such entries, 
 and the filing of such bonds and bills of lading as the 
 Commissioner of Internal Eevenue, with the approval of 
 the Secretary of the Treasury', shall prescribe. 
 
 Regulations Xo. 29 revised. 
 
 Sec. 1. [Paragraph 600, act of August 5, 1909 {36 
 Stat., 73) ; reenactcd sec. 1, var. JiO.L act of Octoier 3, 
 iDigitized by Microsoft® 
 
TOBACCO AND SNtTFF. 393 
 
 1913 {38 Stat., 154.).'] * * * And provided further. 
 That when manufactured tobacco which has been ex- Re-impor t e d 
 ported without payment of internal-revenue tax shall ^^ItwA It J' 
 be re-imported it shall be retained in the custody of the toni'io"se^^^ until 
 collector of customs until internal -revenue stamps in stamps affixed. 
 payment of the legal duties shall be placed thereon. 
 
 Sec. 3386. [Amended by sec. 16, act of March 1, 1879 oiawback on 
 {£0 Stat., 3£7).] There shall be an allowance of draw- InSfald dga™: 
 back on tobacco, snuff, and cigars on which the tax has 
 been paid by suitable stamps affixed thereto before re- 
 moval from the place of manufacture, when the same 
 are exported, equal in amount to the- value of the stamps 
 foimd to have been so affixed; the evidence that the 
 stamps were so affixed, and the amount of tax so paid, 
 and of the subsequent exportation of the said tobacco, 
 snuff, and cigars, to be ascertained imder such regula- 
 tions as shall be prescribed by the Commissioner of In- 
 ternal Eevenue, and approved by the Secretary of the 
 Treasury. Any sums found to be due under the provi- 
 sions of this section shall be paid by the warrant of the 
 Secretary of the Treasury on the Treasurer of the United 
 States out of any money arising from internal duties 
 not otherwise appropriated: °d't'^°b'Vi^ 
 
 Provided, That no claim for an allowance of draw- 
 back shall be entertained or allowed until a certificate 
 from the collector of customs at the port from which the 
 goods have been exported, or other evidence satisfactory 
 to the Commissioner of Internal Eevenue, Tias been fur- 
 nished, that the stamps affixed to the tobacco, snuff, or 
 cigars entered and cleared for export to a foreign coun- 
 try were totally destroyed before such clearance ; nor un- 
 til the claimant has filed a bond, with good and suffi- 
 cient sureties, to be approved by the collector of the 
 district from which the goods are shipped, in a penal 
 sum double the amount of the tax for which said claim 
 is made, that he will procure, within a reasonable time, 
 evidence satisfactory to the Commissioner of Internal 
 Revenue that said tobacco, snuff, or cigars have been 
 landed at any port without the jurisdiction of the United 
 States, or that after shipment the same were lost at sea, 
 and have not* been relanded within the limits of the 
 United States. 
 
 Instructions as to drawback on exported tobacco, snufC 
 and cigars. (T. Ds. 2273, 2330.) 
 
 Sec. 25. [Act of February 8, 1875 {18 Stat., 307).] Fraudulently 
 That if any person or persons shall fraudulently claim b^"' on manu- 
 or seek to obtain an allowance or drawback of duties on factured tobacco. 
 any manufactured tobacco, or shall fraudulently claim 
 any greater allowance or drawback thereon than the duty 
 actually paid, such person or persons shall forfeit triple P""'^'™""*- 
 the amount wrongfully or fraudulently claimed or sought 
 to be obtained, or the sum of five hundred dollars, at the 
 
 Digitized by Microsoft® 
 
394 TOBACCO AND SNUFr. 
 
 election of the Secretary of the Treasuiy, to be recovered 
 as in other cases of forfeiture provided for in the internal 
 revenue laws. 
 
 See also penalty provided by section 3443, page 588. 
 
 An act to authorize the Director of the Census to collect and 
 publish additional statistics of tobacco. 
 
 j^jtatistica of Sec. 1. [Act of April 30, 1912 {37 Stat., 107).] That 
 o acoo. ^-j^^ Director of the Census be, and he is hereby, author- 
 ized and directed to collect and publish, in addition to the 
 tobacco reports now being made by him, statistics of the 
 quantity of leaf tobacco in all forms in the United^ States 
 in the possession of all persons who are dealers or manu- 
 facturers, other than the original growers of tobacco, to 
 be summarized and returned by the holder to the Director 
 of the Census as of the dates of October first, and April 
 first of each year, provided that the Director of the 
 Census shall not be required to collect statistics of leaf 
 tobacco from any manufacturer of tobacco who in the 
 preceding calendar year, according to the returns to the 
 Commissioner of Internal Revenue, manufactured less 
 than fifty thousand pounds of tobacco, or from any manu- 
 facturer of cigars who during the preceding calendar year 
 manufactured less than two hundred and fifty thousand 
 cigars, or from any manufacturer of cigarettes who dur- 
 ing the preceding calendar year manufactured less than 
 one million cigarettes, or from any dealer in leaf tobacco 
 who, on the average, had less than fifty thousand pounds 
 in stock at the ends of the four quarters of the preceding 
 calendar year, and every manufacturer of tobacco who, 
 in the preceding calendar year, according to the returns 
 of the Commissioner of Internal Revenue, manufactured 
 more than fifty thousand pounds of tobacco, and every 
 manufacturer of cigars who, during the preceding calen- 
 dar year, manufactured more than two hundred and fifty 
 thousand cigars, and every manufacturer of cigarettes 
 who, during the preceding calendar year, manufactured 
 more than one million cigarettes, and every dealer in or 
 manufacturer of leaf tobacco who, on an average, during 
 the preceding calendar year, had more than fifty thou- 
 sand pounds in stock, at the ends of the four quarters of 
 the preceding calendar year, shall, under oath, make 
 written reports of the amounts held by them, as herein 
 provided. 
 
 Sec. 7. That the Director of the Census shall have 
 access to the records of the Commissioner of Internal 
 Revenue, for the purpose of obtaining the information 
 herein required, and the Commissioner of Internal Reve- 
 nue shall cooperate with the Director of the Census in 
 effectuating the purposes and provisions of this act. 
 
 Digitized by Microsoft® 
 
Chapter Nine. 
 
 CIGAKS, CIGAEETTES, ETC. 
 
 Sec. 
 
 S244. Subsection 10. Manufacturers of 
 cigars defined. 
 
 3387 ( amended ) . Manufacturer's state- 
 ment, bond, and certificate ; 
 cigarettes and clieroots held to 
 cigars ; penalty. 
 
 3388. Manufacturer's sign. 
 
 S389 (amended T. Record of manufac- 
 . turers. 
 
 3390. Annual inventory, booli, and 
 monthly abstracts of manufac- 
 turer ; penalty. 
 
 8391. Dealers in materials for cigars 
 to make sworn statement ; ex- 
 amination of books. 
 
 3392 (amended). How cigars and 
 
 cigarettes to be put up and 
 stamped ; penalty. 
 
 3393 (amended). Caution notice ; pen- 
 
 alty. 
 
 3394 (amended). Tax on cigars and 
 
 cigarettes. 
 700. Act of February 24, 1919. Rate 
 of tax on cigars and cigarettes 
 manufactured in or Imported 
 into United States. 
 
 702. (Same.) Floor tax. 
 
 703. ( Same. ) Cigarette paper ; bonds ; 
 
 records. 
 
 3395. Stamps, how prepared, furnished, 
 
 etc. 
 
 3396. Commissioner to prescribe regu- 
 
 lations. 
 
 Sec. 
 
 3397 (amended). Removal without 
 properly boxing, stamping, or 
 branding; using false stamps, 
 etc. ; cigars packed for export ; 
 penalty. 
 
 3398. Absence of stamp cause of for- 
 
 feiture. 
 
 3399. Cigars manufactured on shares, 
 
 commission, or contract, how 
 stamped ; fraud, penalty. 
 
 3400. Forfeiture of property for sell- 
 
 ing etc., contrary to law, using 
 false stamps, etc. 
 
 3401. (Obsolete.) 
 
 3402. Imported cigars to pay tax. 
 
 3403. Cigars on hand after April 1. 
 
 1869. Selling imported cigars 
 not packed and stamped as re- 
 quired by law ; penalty. 
 
 3404. Purchasing cigars not branded or 
 
 stamped; penalty. 
 
 3405. Buying cigars from manufac- 
 
 turer who has not paid special 
 tax. 
 
 3406. Stamps on emptied cigar boxes 
 
 to be destroyed ; penalty. De- 
 struction of emptied stamped 
 cigar boxes; penalty. 
 IV. Par. M., act of October 3, 1913. 
 Cigars manufactured from im- 
 ported tobacco. 
 
 M a nufacturera 
 of cigars defined. 
 
 Sec. 3244. lAinended. Tenth subsection'] * * * 
 Every person whose business it is to make or manufacture 
 cigars for himself, or who employs others to make or 
 manufacture cigars, shall be regarded as a manufacturer 
 of cigars.- Every person whose business it is to make 
 cigars for others, either for pay tipon commission, on 
 shares, or otherwise, from material furnished by others, defiMd.*'^'"^''*' 
 shall be regarded as a cigar-maker. Every cigar-maker Registration. 
 shall cause his name and residence to be registered, with- 
 out previous demand, with the collector of the district 
 in which such cigar-maker shall be employed ; and every 
 manufacturer of cigars employing any cigar-maker who 
 shall have neglected or refused to make such registry ahall 
 be fined five dollars for each day that such cigar-maker so 
 
 Digitized by Microsoft® 
 
 395 
 
396 CIGAKS, CIGARETTES, ETC. 
 
 oflFending, by neglect or refusal to register, shall be em- 
 ployed by him. 
 
 The provision relative to registry of cigar-makers is vir- 
 tually obsolete. Tlie otlier provisions of the law on the 
 same subject were stricken out by section 16, act of March 
 1, 1879 (20 Stat., 347), amending sections 3387, page 396 
 and 3389, page 397, and the omission to strike this out was 
 evidently accidental. 
 
 Special tax provision repealed by act October 1, 1890. 
 
 Special tax again imposed by act June 13, 1898, and 
 repealed.by the act of April 12, 1902. (Sec. 5.) 
 
 Special tax imposed by section 700, act of February 24, 
 1919. (See p; 401.) 
 
 stat^^n'r^Tn'd ^^'^- ^^^"^ ■ [Amended hy sec. 35, act of October 1, 1890 
 
 bond. {26 Stat., 6W).~\ Every person before commencing, or, 
 
 if he has already commenced, before continuing, the 
 inanilfacture of cigars, shall furnish, without previous 
 
 Form' No"^!**" <iemand therefor, to the collector of the district a state- 
 ment in duplicate, under oath, setting* foi'th the place, 
 and, if in a city, the street and number of the street, 
 ■where the manufacture is to be carried on ; and when the 
 same are to be manufactured for, or to be sold and deliv- 
 ered to, any other person, the name and residence and 
 business or occupation of the person for whom they are 
 ^ to be manufactured, or to whom they are to be delivered ; 
 Bend. Form j^jjj shall give a bond, in conformity with the pro- 
 visions of this Title, in such penal sum as the collector 
 may require, not less than [one] hundred dollars, and 
 the sum of said bond may be increased from time to 
 time and additional sureties required, at the discretion of 
 the collector, or under the instructions of the Commis- 
 sioner of Internal Revenue. Said bond shall be condi- 
 tioned that * * * he shall not engage in any at- 
 tempt, by himself or by collusion with others, to defraud 
 the Government of any tax on his manufactures ; that he 
 shall render correctly all the returns, statements, and in- 
 ventories prescribed; that whenever he shall add to the 
 number of cigar-makers employed by him he shall imme- 
 diately give notice thereof to the collector of the district; 
 that he shall stamp, in accordance with law, all cigars 
 manufactured by him before he offers the same or any 
 part thereof for sale, and before he removes any part 
 thereof from the place of manufacture ; that he shall not 
 knowingly sell, purchase, expose, or receive for sale, any 
 cigars which have not been stamped as required by law; 
 and that he shall comply w ith all the requirements of law 
 relating to the manufacture of cigars. Every cigar- 
 manufacturer shall obtain from the collector of the dis- 
 
 Fonif 'no^iij^' t'^i'^'t' '"'^o is hereby required to issue the same, a certifi- 
 °™ "■ ■ cate setting forth the number of cigar-makers for which 
 the bond has been given, and shall keep the same posted 
 in a conspicuous place within the manufactory; and 
 every cigar-manufacturer who neglects or refuses to ob- 
 tain such certificate, or to keep the same posted as herein- 
 before pr(®A^'fi(^dltqli/\toer6s©fl'®ne hundred dollars. 
 
CIGARS, CIGAEETTES, ETC. , 3^7 
 
 Andeverj^ person Avho manufactures cigars of any'de- Penalty. 
 scription, without first giving bond as herein required, 
 shall be fined not less than one hundred dollars nor mora 
 than five thousand dollars, and imprisoned not less than 
 three months nor more than five years. 
 
 Cigarettes and cheroots shall be held to be cigars under ehe°ifotr*hli/to 
 the meaning of this chapter. be cigars. 
 
 The place of manufacture should be kept separate and 
 apart from the place of sale. (United States v. Neld, 13 Int. 
 Uev. Eec, 28; Fed. Gas. No. 15, 860.) 
 
 A manufacturer of tobacco or cigars can not sell at 
 retail at place of manufacture. (Ludloff r. United States, 
 108 U. S., 176 ; 29 Int. Rev. Rec, 125 ; 16 Op. Atty. Gen., 89 ; 
 24 Int. Rev. Rec, 227.) 
 
 A manufacturer can not retail cigars in his cigar fac- 
 tory. (Crisp V. Proud, 24 Int. Rev. Rec, 340; 4 Hughes 57; 
 Fed. Gas. No. 3392.) 
 
 Where cigar manufacturers desire to voluntarily file a 
 new bond, such bond, if approved by the collector, should 
 be accepted, and the manufacturers' accounts closed- under 
 the old bond. Sureties on old bond released when a new 
 bond is given. (T. D. 740.) 
 
 Bond of minor son of deceased manufacturer. (T. D. 
 792.) 
 
 Administrator must obtain consent of sureties to con- 
 tinue under bond of deceased. (T. D. 926.) 
 
 Consent of sureties necessary before factory can be en- 
 larged or changed. (T. D. 964.) 
 
 Sec. 3388. Every cigar-manufacturer shall place and ^j^M=,nutaeturer'8 
 keep on the side or end of the building within which his 
 business is carried on, so that it can be distinctly seen, a 
 sign, with letters thereon not less than three inches in 
 length, painted in oil-colors or gilded, giving his full 
 name and business. Any person neglecting to comply 
 with the requirements of this section shall on conviction, 
 be fined not less than one hundred dollars nor more than 
 five hundred dollars. 
 
 Sign iimst be in English language. (Regulations Xo. 8, 
 p. 48.) 
 
 Sec. 3389. lA97iended by sec. 34, act of October 1, 1890 n^Xct^rL t\ 
 {26 Stat., 6W).'] Every collector shall keep a record, in ;^'|''p''«j t° ^^e 
 a book provided for that purpose, to be open to the in- lector. 
 spection of only the proper officers of internal-revenue, 
 including deputy collectors and internal-revenue agents, 
 of the name and residence of every person engaged in the Record ii. 
 manufacture of cigars in his district, the place where 
 such manufacture is carried on, and the number of the 
 manufactory; and he shall enter in said record, under 
 the name of each manufacturer an abstract of his inven- 
 tory and monthljr returns ; and he shall cause the several 
 manufacturers of cigars in the district to be numbered 
 consecutively, which number shall not thereafter be 
 changed. 
 
 Sec. 3390. Every person now or hereafter engaged in 
 the manufacture of cigars shall make and deliver to the 
 
 Digitized by Microsoft® 
 
398 
 
 CIGARS, CIGARETTES, ETC. 
 
 tory'""bOTk°^e'n- coUector of tlic district a true inventory, in such form as 
 tries, and month- may be prescribed by the Commissioner of Internal 
 manSf*ac?ure?f Eevenue, of the quantity of leaf tobacco, cigars, stems, 
 Form No. Yob. scraps, clippings, and waste, and of the number of cigar- 
 boxes and the capacity of each box, held or owned by him 
 on the first day of January of each year, or at the time 
 of commencing and at the time of concluding business, if 
 before or after the first of January; setting forth what 
 portion and kinds of said goods were manufactured or 
 produced by him, and what were purchased from others, 
 and shall verify said inventory hy his oath indorsed 
 thereon. The collector shall make personal examination 
 Verification of of the stock sufficieut to satisfy himself as to the correct- 
 invenor>, ^^^^ ^^ ^j^^ iuvcutory ; and shall verify the fact of such 
 
 examination by oath to be indorsed on the inventory. 
 Form No. 73. Evcry such person shall also enter daily in a book, the 
 form of which shall be prescribed by the Commissioner 
 of Internal Revenue, an accurate account of all the arti- 
 cles aforesaid purchased bj' him, the quantity of leaf-to- 
 bacco, cigars, stems, or cigar-boxes, of whatever descrip- 
 tion, manufactured, sold, consumed, or removed for con- 
 sumption or sale, or removed from the place of manufac- 
 ture; and shall, on or before the tenth day of each and 
 every month, furnish to the collector of the district a 
 Form No. V2. truc and accurate abstract from such book, verified by 
 his oath, of all such purchases, sales, and removals made 
 during the month next preceding. In case of refusal or 
 willful neglect to deliver the inventory or keep the ac- 
 Penaity. count, Or fumisli the abstract aforesaid, he shall be fined 
 
 not less than five hundred dollars nor more than five 
 thousand dollars, and imprisoned not less than six 
 months nor more than three years. 
 
 Verificatidu of i-etiirns. (T. D. 1646.) Inventory taken 
 July 1, 1910. (T. D. 1631.) 
 
 Instructions as to inventories on January 1, 1920, and 
 verification thereof liv collectors or their deputies. (T. D. 
 2955.) 
 
 Instructions regarding preparation of accounts of manu- 
 facturers of cigars and cigarettes. (T. D. 1726.) 
 
 Instructions to collector.s regarding annual inventories 
 to be made by cigar and tobacco manufacturers. (T. Ds. 
 1733, 1895, 2057.) 
 
 Revised Form 72 to be used by manufacturers reporting 
 for December, 1913, and thereafter. (T. D. 1925.) 
 
 Unstamped cigars and cigarettes removed as " smokers." 
 (T. Ds. 1723, 1725, 1744.) 
 
 Monthly abstracts; forms to be used. (T. D. 29-37.) 
 
 Sec. 3391. It shall be the duty of every dealer in leaf- 
 tobacco or material used in manufacturing cigars, on de- 
 mand of any officer of internal revenue, to render to such 
 officer a true and correct statement, under oath, of the 
 quantity and amount of such leaf -tobacco or materials 
 sold or delivered to any person named in such demand; 
 and in case of refusal or neglect to render such statement, 
 or if there is cause to believe such statement to be incor- 
 rect or ir^S.im^,bii\^iGSm'Sm shall make an examina- 
 
 Dealers in ma- 
 terial for cigars 
 to make sworn 
 statement, when 
 demanded. 
 
CIGARS, CIGARETTES, ETC. 399 
 
 tion of persons', books, and papers in the maimer provided booto!'"'""""" "' 
 in this Title in rehition to frauds and evasions. 
 
 See sections 3173, page 104 ; S176, page lOS. 
 
 Sec. 3392. [Amended hy sec. 32, act of October 1, 1890 
 {m Stat., 619) , hy sec. 32, act of Augmt S, 1909 {36 Stat., 
 109), and by act of February 10, 1913 {37 Stwt., 66/^).] 
 All cigars weighing more than three pounds per thousand N^'boxes re- 
 shall be packed in boxes not before used for that pur- quired. 
 pose containing, respectively, five, ten, twelve, thirteen, 
 twenty-five, fifty, one hundred, two hundred, two hun- 
 dred and fifty, or five hundred cigars each ; and every per- ™^ ^' 
 son who sells, or oilers for sale, or delivers, or offers to 
 deliver, any cigars in any other form than in new boxes as 
 above described, or who packs in any box any cigars in 
 excess of or le^s than the number provided by law to be 
 put in each box, respectively, or who falsely brands any 
 box, or affixes a stamp on any box denoting a less amount 
 of tax than that required by law, shall be fined for each 
 offense not more than one thousand dollars, and be impris- 
 oned not more than two years : Provided, That nothing in provisos. 
 tliis section shall be construed as preventing the sale of 
 cigars at retail by retail dealers from boxes packed, '^*''"' ^^^^' 
 stamped and branded in the manner prescribed by law: 
 Provided further. That each employee of a manufacturer 
 of cigars shall be permitted to use, for personal consump- 
 tion and for experimental purposes, not to exceed twenty- 
 one cigars per week without the manufacturer of cigars 
 being required to pack the same in boxes or to stamp or 
 pay any internal-revenue tax thereon, such exemption to 
 be allowed under such rules and regulations as the Secre- 
 tary of the Treasury may prescribe : And frovided fur- °'s^''^"«=- 
 ther. That every manufacturer of cigarettes shall pu^t up 
 all the cigarettes that he manufactures or has manufac- 
 tured for him and sells or removes for consumption or 
 use, in packages or parcels containing five, eight, ten. fif- qmTed.''*^'^* ^^ 
 teen, twenty, fifty, or one hundred cigarettes each, and 
 shall securely affix to each of said packages or parcels a 
 suitable stamp denoting the tax thereon, and shall prop- 
 erly cancel the same prior to such sale or removal for con- 
 sumption or use, under such regulations as the Commis- 
 sioner of Internal Revenue shall prescribe ; and all ciga- rettes.^"^^ °'^*' 
 rettes imported from a foreign country shall be packed, 
 stamped, andTthe stamps canceled in like manner, in ad- 
 dition to the import stamp indicating inspection of the 
 custom house before they are withdrawn therefrom. 
 
 Cigars shall be put up in boxes properly stamped xind 
 branded with the number of the factory /and number of 
 the district and the State. ( United States' r. 76,125 Cigars, 
 18 Fed., 147; Jackson v. United States, 21 Fed., 3.5.) 
 
 Regulations governing use by cigar factory employees of 
 tax-free cigars for personal consumption. (T. D. 1875; 
 T. D. 1881.) 
 
 Cancellation of tobacco, snufC. cigar, and cigarette 
 
 ^'Srat^onrrM!«F'^0^0%^/?® 
 
400 
 
 Label and n( 
 tice on cigars. 
 
 Penalty. 
 
 Rates of tax. 
 
 Cigara. 
 
 Cigarettes. 
 
 Classification. 
 
 Stamps for 
 new rate of tax. 
 
 Provuo. 
 Denominations. 
 
 Restrictions on 
 all pa('l:Hg:es. 
 
 CIGABS, CIGARETTES, ETC. 
 
 Sec. 3393. [Amended hy sec. 16,' act of March 1, 1879 
 {20 Stat. 3^7) .] Every manufacturer of cigars shall 
 securely affix, by pasting on each box containing cigars 
 manufactured by or for him, a label, on which shall be 
 printed, besides the number of the manufactory and the 
 district and State in which it is situated, these words: 
 
 Notice. — The manufacturer of the cigars herein contained has 
 complied with all the requirements of law. Every person is 
 cautioned not to use either this box for cigars again, or the stamp 
 thereon again, nor to remove the contents of this box without 
 destroying said stamp, under the penalty provided by law in such 
 cases. 
 
 Every manufacturer of cigars who neglects to affix 
 such label to any box containing cigars made by or for 
 him, or sold or offered for sale by or for him, and every 
 person who removes any such label, so affixed, from any 
 such box, shall be fined fifty dollars for each box in re- 
 spect to which such offense is committed. 
 
 Imprinting caution notice on cigar boxes (T. D. 1599). 
 
 Sec. 3394. [Amended hy sec. 33, act of August 6, 1909 
 {36 Stat., 110).'] Upon cigars and cigarettes which shall 
 be manufactured and sold, or removed for consumption 
 or sale, there shall be assessed and collected the following 
 taxes, to be paid by the manufacturer thereof : On cigars 
 of all descriptions made of tobacco or any substitute 
 therefor and weighing more than three pounds per thou- 
 sand, three dollars per thousand; on cigars, made of 
 tobacco, or any substitute therefor, and weighing not 
 more than three pounds per thousand, seventy-five cents 
 per thousand; on cigarettes, made of tobacco, or any 
 substitute therefor, and weighing more than three pounds 
 per thousand, three dollars and sixty cents per thousand ; 
 on cigarettes made of tobacco, or any substitute therefor, 
 and weighing not more than three pounds per thousand, 
 one dollar and twenty-five cents per thousand : Provided, 
 That all rolls of tobacco, or any substitute therefor, 
 wrapped with tobacco, shall be classed as cigars; and all 
 rolls of tobacco, or any substitute therefor, wrapped in 
 paper or any substance other than tobacco, shall be 
 classed as cigarettes. 
 
 And the Commissioner of Internal Revenue, with the 
 approval of the Secretary of the Treasury, shall provide 
 dies and stamps for cigars weighing not more than three 
 pounds per thousand ; and for cigarettes at the rates of 
 tax imposed by this section : Provided, That such stamps 
 shall be in denominations of five, eight, ten, fifteen, 
 twenty, fifty, and one hundred; and the laws and regula- 
 tions governing the packing and removal for sale of 
 cigarettes, and the affixing and canceling of the stamps on 
 the packages thereof, shall apply to cigars weighing not 
 more than three pounds per thousand. 
 
 No packages of manufactured tobacco, snuff, cigars, 
 or cigarettes, prescribed by law, shall be permitted to 
 have packg^^fifeeOTbjrtjIifligjaigloteg) or connected with them, 
 
CIGARS, CIGAHETTES, ETC. 401 
 
 nor affixed to, branded, stamped, marked, written, or 
 printed upon theni, any paper, certificate, or instrument 
 purpoiiihg to Be or represent a ticket, chance, share or 
 interest in, or dependent upon, the event of a lottery, lottery. 
 nor any indecent or immoral picture,- representation, 
 print, or words; and any violation of the provisions of 
 this paragraph shall subject the offender to the penalties I'enaity. 
 and punishments provided by section thirty-four hundred 
 and fifty-six of the Revised Statutes. 
 
 Section 3394 was amended by section 2, act of March 3, 
 1875 (18 Stat., 339) ; section 4, act of March 3, 1883 (22 
 Stat., 488) ; section 10, act of July 24, 1897 (30 Stat., 206) ; 
 section 3, act of June 13, 1898 (30 Stat, 449) ; section 3, 
 act of March 2, 11901 (31 Stat., 939) ; section 3, act of April 
 12, 1902 (32 Stat., 96) ; act of July 1, 1902, and section 
 33, act of August 5, 1909 (36 Stat., 110), taking effect .July 
 1, 1910. 
 
 " Jumbo " cigars, or cigars of jinusual size, are to be 
 classified as manufactured tobacco. The fact that they 
 could be smoked did not altogether determine their charac- 
 ter. (D'Estrinoz r. Gerker, 43 Fed., 285.) 
 
 Inserts packed in statutory packages of tobacco, snuff, 
 cigars, and cigarettes held to be violative of this section, 
 relating to a lottery. (T. Ds. 1819, 2319.) 
 
 Forms for manufacturers' orders for stamps for cigars, 
 cigarettes, etc. (T. D. 2411.) 
 
 Sec. 700. [Act of Fehruary H, 1919 {40 Stat., 1057).] 
 (a) That upon cigars and cigarettes manufactured in or Rate of tax 
 imported into the United States, and hereafter sold by the ""gaSr manu^ 
 manufacturer or importer, or removed for consumption '^*"J^fj 'P ^^ 
 or sale, there shall be levied, collected, and paid under the united states. 
 provisions of existing law, in lieu of the internal-revenue 
 taxes now imposed thereon by law, the following taxes, 
 to be paid by the manufacturer or importer thereof — 
 
 On cigars of all descriptions made of tobacco, or any 
 substitute therefor, and weighing not more than three 
 pounds per thousand, $1.50 per thousand ; 
 
 On cigars made of tobacco, or any substitute therefor, 
 and weighing more than three pounds per thousand, if 
 .manufactured or imported to retail at not more than 5 
 cents each, $4 per thousand ; 
 
 If manufactured or imported to retail at more than 5 
 cents each and not more than 8 cents each, $6 per 
 thousand; 
 
 If manufactured or imported to retail at more than 8 
 cents each and not more than 15 cents each, $9 per 
 thousand ; 
 
 If manufactured or imported to retail at more than 
 15 cents each and not more than 20 cents each, $12 per 
 thousand; 
 
 If manufactured or imported to retail at more than 20 
 cents each, $15 ]5er thousand ; 
 
 On cigarettes made of tobacco, or any substitute there- 
 for, and weighing not more than three pounds per thou- 
 sand, $3 per thousand ; 
 140184°— 20 26 
 
 Digitized by Microsoft® 
 
402 
 
 CIGARS, CIGARETTES, ETC. 
 
 Packages 
 cigarettes i 
 small cigars. 
 
 Stamps. 
 
 Weighing more than three pounds per thousand, $7.20 
 2)er thousand. 
 
 s^r?'^ P'"* °* (b) Whenever in this section reference is made to 
 cigars manufactured or imported to retail at not over a 
 certain price each, tiien in det^cmining the tax te be paid 
 regard shall be had to the ordinary retail price of a single 
 cigar. 
 
 Labels. (c) The Commissioner may, by regulation, require the 
 
 manufacturer or importer to affix to each box, package, or 
 container a conspicuous label indicating the clause of this 
 section under which the cigars therein contained have 
 been tax-paid, which must correspond with the tax-paid 
 stamp op such box or container. 
 
 (d) Every manufacturer of cigarettes (including small 
 cigars weighing not more than three pounds per thou- 
 sand) shall put up all the cigarettes and such small cigars 
 that he manufactures or has manufactured for him, and 
 sells or removes for consumption or sale, in packages or 
 parcels containing five, eight, ten, twelve, fifteen, six- 
 teen, twenty, twenty-four, forty, fifty, eighty, or one 
 hundred cigarettes each, and shall securely affix to each 
 of such packages or parcels a suitable stamp denoting the 
 tax thereon and shall properly cancel the same prior to 
 such sale or removal for consumption or sale under such 
 regulations as the Commissioner, with the approval of 
 the Secretary, shall prescribe; and all cigarettes im- 
 l^orted from a foreign country shall be packed, stamped, 
 and the stamps canceled in a like manner, in addition to 
 the import stamp indicating inspection of the custom- 
 house before they are withdrawn therefrom. 
 
 Regulations. (T. Ds. 2813, 2842.) 
 
 Floor tax. Sec. 702. [Aot of Fehruavy '2k, 1919 {Jfi Stat, 1057).] 
 
 That upon all the articles enumerated in section 700 
 * * *, which were manufactured or imported, and re- 
 moved from factory or customhouse on or prior to the 
 date of the passage of this Act, and upon which the tax 
 imposed by existing law has been paid, and which are, 
 on the day after the passage of this Act, held by any 
 person and intended for sale, there shall be levied, 
 assessed, collected, and paid a floor tax equal to the dif- 
 ference between (a) the tax imposed by this Act upon 
 such articles according to the class in which they are 
 placed by this title, and (b) the tax imposed upon such 
 articles lay existing law other than section 403 of the 
 Bevenue Act of 1917. 
 
 Kegulations. (T. D. 2799.) 
 
 Cigarette Sec. 703. [Act of February H, 1919 {Jfi Stat., 1067) .] 
 iper. That there shall be levied, collected, and paid, in lieu or 
 
 the taxes imposed by section 404 of the Revenue Act of 
 1917, upon cigarette paper made up into packages, books, 
 sets, or tubes, made up in or imported into the United 
 States and hereafter sold by the manufacturer or importer 
 Digitized by Microsoft® 
 
CIGARS, CIGAEETTES, ETC. 
 
 403 
 
 to any person (other than to a manufacturer of ciga- 
 rettes for use by him in the manufacture of cigarettes) 
 the following taxes, to be paid by the manufacturer or 
 importer : On each package, book, or set, containing more 
 than twenty-fiA'e but not more than fifty papers, ^ cent; 
 containing more than fifty but not more than one hun- 
 dred papers, 1 cent; containing more than one hundred 
 papers, i cent for each fifty papers or fractional part 
 thereof; and upon tubes, 1 cent for each fifty tubes or 
 fractional part thereof. 
 
 Every manufacturer of cigarettes purchasing any ciga- 
 rette paper made up into tubes (a) shall give bond in an 
 amount and with sureties satisfactory to the Commis- 
 sion that he will use such tubes in the manufacture of 
 cigarettes or pay thereon a tax equivalent to the tax 
 imposed by this section, and (b) shall keep such records 
 and render under oath such returns as the Commissioner 
 finds necessary to show the disposition of all tubes pur- 
 chased or imported by such manufacturer of cigarettes. 
 
 Eegulations. (T. Ds. 2552, 2569, 2842.) 
 Floor stock, returns. (T. D. 2556.) 
 
 Date of acts imposiriff tax on cigars and cigarettes and rates of tax. 
 
 Bonds. 
 
 Records, 
 
 Rates 
 oftEtx. 
 
 Acts impos- 
 ing tax. 
 
 Acts repeal- 
 _ ing tax. 
 
 Length 
 of time 
 
 rates 
 were in 
 
 force. 
 
 ' Cigars valued at not over $5 per M 
 
 Valued ut over 35 and not over SIO 
 
 per M 
 
 Valued at over $10 and not over?20 
 
 per M 
 
 Valued at over $20 per M 
 
 Cheroots valued at not over $.5 per M 
 
 Cigars valued at not over $5 per M 
 
 Valued at over So and not over $15 
 
 per M 
 
 Valued at over $15 and not over $30 
 
 perM 
 
 Valued at over $30 and not over $45 
 
 per M 
 
 Valued at over $45 per M 
 
 Cigarettes valued at not over $6 per 100 
 
 packages of 25 each 
 
 Valued at over $6 per 100 packages 
 
 of 25 each 
 
 Cigarettes made wholly of tobacco 
 
 Cigars and cheroots made wholly of to- 
 
 oacco or of any substitutes therefor 
 
 Cigarettes valued at not over $5 per 100 
 
 packages of 25 each 
 
 Valued at over $5 per 100 packages 
 
 of 25 each 
 
 Cigarettes made wholly of tobacco or of 
 
 any substitutes therefor 
 
 Cigars, cigarettes, and cheroots valued 
 
 at $8 per M or less 
 
 Valued at over $8 and not over $12 
 
 perM 
 
 Valued at over $12 per M 
 
 Cigars, cigarettes, and cheroots of all 
 
 desciiirtions 
 
 Cigars and cheroots of all descriptions - - . 
 Cigarettes weighing not over 3 pounds 
 
 perM 
 
 Weighing over 3 poimds per M 
 
 Per M. 
 $1.50 
 
 2.00 
 
 2.50 
 3.50 
 3.00 
 3. 00 
 
 8.00 
 
 15.00 
 
 25.00 
 40.00 
 
 13.00 
 3.00 
 
 10.00 
 2.05 
 ' .05 
 
 10.00 
 
 2.00 
 
 4.00 
 M.OO 
 
 5.00 
 5.00 
 
 1.50 
 5.00 
 
 July 1, 1862 
 
 do 
 
 do 
 
 do 
 
 June 30,1864 
 -do 
 
 -do., 
 -do. 
 
 ' Per 100 packages. 
 
 " Per package. 
 
 -.do 
 
 ..do 
 
 ..do 
 
 -.do 
 
 Mar. 3, 1865 
 
 do 
 
 do 
 
 do 
 
 July 13,1866 
 
 do 
 
 .-..-.do 
 
 Mar. 2, 1867 
 7uly 20,1868 
 
 do 
 
 do 
 
 ' Per cent. 
 
 June 30,1864 
 
 do 
 
 ....do 
 
 -..-do 
 
 Mar. 3, 1865 
 ..-do 
 
 .do., 
 .do. 
 
 ..do-. 
 ..do.. 
 
 .-do---- 
 -.do.-.. 
 
 July 13,1866 
 
 do 
 
 do 
 
 do 
 
 Mar. 2,1867 
 
 do 
 
 do 
 
 Monihs, 
 22 
 
 22 
 22 
 9 
 
 Digitized by Microsoft® 
 
 July 20,1868 
 Mar. 3, 1875 
 
 do 
 
 do 
 
 ' And 20 per cent. 
 
 16 
 16 
 16 
 16 
 7 
 
 7 
 
 7 
 
 17 
 79 
 
 79 
 79 
 
404 
 
 CIGABS, CIGABETTES, ETC. 
 
 Date of acts imposing tax on cigars and cigarettes and rates. of 
 tax — Continued. 
 
 Kates 
 oftax. 
 
 Acts impos- 
 ing tax. 
 
 Acts repeal- 
 ing tax. 
 
 Length 
 of time 
 
 rates 
 were in 
 
 force. 
 
 Cigars and cheroots of all descriptions. ■ . 
 Cigarettes weighing not over 3 pounds 
 
 per M 
 
 Weighing over 3 pounds per M 
 
 Cigars and cheroots of all descriptions . . . 
 Cigarettes weighing cot over 3 pounds 
 
 perM 
 
 Weighing over 3 pounds per Bf 
 
 Cigars weighing more than 3 pounds 
 
 per M 
 
 Weighing not more than 3 pounds 
 
 perM 
 
 Cigarettes weighing more than 3 pounds 
 
 perM 
 
 Weighing not more than 3 pounds 
 
 perM 
 
 Cigars weighing more than 3 pounds 
 
 perM 
 
 Weighing not more than 3 pounds 
 
 perM 
 
 Cigarettes'weighing more than 3 pounds 
 
 per M 
 
 Weighing not more than 3 pounds 
 
 perM , 
 
 Cigars weighing more than 3 pounds 
 
 perM 
 
 Weighing not more than 3 poimds 
 
 perM 
 
 Cigarettes weighing more than 3 pounds 
 
 perM 
 
 Weighing not more than 3 pounds 
 per M of wholesale value or price 
 _ of— 
 
 Not over $2 per M 
 
 More than S2 per M - . 
 
 Cigars weighing more than 3 pounds 
 
 perM 
 
 Weighing not more than 3 pomids 
 
 perM 
 
 Cigarettes weighing more than 3 pounds 
 
 perM 
 
 Weighing not more than 3 pounds 
 
 perM 
 
 Class A. Cigars weighing more than 3 
 pounds per 1,000 if manufac- 
 tured or imparted to retail 
 at less than 4 cents each — 
 Class B. Cigars weighing more than 3 
 pounds per 1,000 if manufac- 
 tured or imported to retail 
 at 4 cents or more and not 
 
 more than 7 cents each 
 
 Class C. Cigars weighing more than 3 
 pounds per 1,000 if manufac- 
 tured or Imported to retail 
 at more than 7 cents each 
 and not more than 15 cents 
 
 each 
 
 Class D. Cigars weighing more than 3 
 pounds per 1,000 if manufac- 
 tured or imported to retail 
 at more than 15 cents each 
 and not more than 20 cents 
 
 each 
 
 Class E. Cigars weighing more than 3 
 pounds per 1,000 if manufac- 
 tured or imported to retail 
 at more than 20 cents each. 
 Cigars weighing not more than 
 
 3 pounds per 1,000 
 
 Cigarettes weighing not more 
 
 than 3 pounds per 1,000... 
 
 Cigarettes weighing more than 
 
 3 pounds per 1,000 
 
 Per M. 
 S6.00 
 
 1.75 
 6.00 
 3.00 
 
 .60 
 3.00 
 
 3.00 
 
 1.00 
 
 3.00 
 
 1.00 
 
 1.00 
 3.60 
 1.50 
 3.00 
 
 .54' 
 3.00 
 
 .34 
 1.08 
 
 Months, 
 
 1.25 
 
 3.00 
 
 3.50 
 
 4.50 
 
 5.50 
 
 6.50 
 
 .87^ 
 1.65 
 4.20 
 
 Mar., 3,1876 
 
 do 
 
 do 
 
 Mar. 3, 188.3 
 
 ....do 
 
 ....do 
 
 July 24,1897 
 
 ....do 
 
 ....do 
 
 ....do 
 
 June 13,1898 
 
 ....do 
 
 ....do 
 
 ....do 
 
 Mar. 2, 1901 
 
 do 
 
 Apr. 12,1902 
 
 Mar. 2,1901 
 do 
 
 Aug. 5, 1909 
 
 do 
 
 do 
 
 Mar. 3, 1883 
 
 do 
 
 do 
 
 June 13,1898 
 
 July 24,1897 
 June 13,1898 
 
 ...do 
 
 Mar. 2, 1901 
 June 13,1898 
 
 ...do 
 
 Mar. 2, 1901 
 
 ....do 
 
 Apr. 12,1902 
 Mar. 2, 1901 
 
 Aug. ,. 5, 1909 
 do 
 
 do 
 
 do..;.... 
 
 Oct. 3, 1917 
 
 do 
 
 do 
 
 .do 
 
 Oct. 3, 1917 
 
 ...do.. 
 
 .do.. 
 
 ..do 
 
 ....do.. 
 
 -do 
 
 do 
 
 do 
 
 do 
 
 do 
 
 do 
 
 ......do 
 
 do 
 
 do 
 
 Digitized by Microsoft® 
 
CIGARS, CIGARETTES, ETC. 
 
 405 
 
 Date of acts imposing tax on cigars and cigarettes and rates of 
 tax — Continued. 
 
 
 
 
 
 Length 
 
 
 Rates 
 ottax. 
 
 Acts impos- 
 mg tax. 
 
 Acts repeal- 
 ing tax. 
 
 of time 
 rates 
 
 were in 
 force. 
 
 Class A. Cigars weighing more than 3 
 
 Pet M. 
 
 
 
 Montlls. 
 
 pounds per 1,000 if manuiiac- 
 
 
 
 
 
 tured or imported to retail 
 
 
 
 
 
 at less than 4 cents each 
 
 S3. 00 
 
 Oct. 3,1917 
 
 Feb. 24, 1919. 
 
 16 
 
 Class B. Cigars weighing more than 3 
 
 
 
 
 
 pounds per 1,000 if manufac- 
 
 
 
 
 
 tured or imported to retail 
 
 
 
 
 
 at 4 cents or more and not 
 
 
 
 
 
 more than 7 cents each 
 
 4.00 
 
 do 
 
 do 
 
 16 
 
 Class C. Cigars weighing more than 3 
 pounds per 1,000 if manufac- 
 
 
 
 
 
 
 
 
 
 tured or imported to retail 
 
 
 
 
 
 at more than 7 cents each 
 
 
 
 
 
 and not more than 15 cents 
 
 
 
 
 
 each 
 
 6.00 
 
 do 
 
 do 
 
 16 
 
 Class I). Cigars weighing more than 3 
 
 
 
 
 
 pounds per 1,000 if manufac- 
 
 
 
 
 
 tured or imported to retail 
 
 
 
 
 
 at more than 15 cents each 
 
 
 
 
 
 and not more than 20 cents 
 
 
 
 
 
 each 
 
 8.00 
 
 do 
 
 do 
 
 16 
 
 Class E. Cigars weighing more than 3 
 
 
 
 
 
 pounds per 1,000 if manufac- 
 
 
 
 
 
 tured or imported to retail 
 
 
 
 
 
 at more than 20 cents each. . 
 
 10.00 
 
 do 
 
 do 
 
 16 
 
 Cigars weighing not more than 
 
 
 
 
 
 3 pounds per 1,000 
 
 1.00 
 
 do 
 
 do 
 
 16 
 
 Cigarettes weighing not more 
 than 3 pounds per 1-,000 
 
 
 
 
 2.05 
 
 do 
 
 do 
 
 18 
 
 Cigarettes weighing more than 
 
 
 
 
 
 3 pounds per 1,000 
 
 4.80 
 
 do 
 
 do 
 
 18 
 
 Glass A. Cigars weighing more than 3 
 
 
 
 
 
 pounds per 1,000 if manufac- 
 
 
 
 
 
 tured or imported to retail 
 
 
 
 
 
 at not more than 5 cents 
 
 
 
 
 
 each. 
 
 4.00 
 
 Feb. 24,1919 
 
 
 
 Class B. Cigars weighing more than 3 
 
 
 
 pounds per 1,000 if manufac- 
 
 
 
 
 
 tured or imported to retail 
 
 
 
 
 
 at more than 5 cents each 
 
 
 
 
 
 and not more than 8 cents 
 
 
 
 
 
 each 
 
 6.00 
 
 do 
 
 
 
 Class C. Cigars weighing more than 3 
 
 
 
 
 pounds per 1,000 if manufec- 
 
 
 
 
 
 tured or imported to retail 
 
 
 
 
 
 at more than 8 cents each 
 
 
 
 
 
 and not more than 15 cents 
 
 
 
 
 
 each 
 
 9.00 
 
 do 
 
 
 
 Class D. Cigars weighing more than 3 
 
 
 
 
 pounds per 1,000 if manufac- 
 
 
 
 
 
 tured or imported to retail 
 
 
 
 
 
 at more than 15 cents each 
 
 
 
 
 
 and not more than 20 cents 
 
 
 
 
 
 each 
 
 12.00 
 
 do 
 
 
 
 Class E. Cigars weighing more than 3 
 
 
 
 
 pounds per 1,000 if manufac- 
 
 
 
 
 
 tured or imported to retail 
 
 
 
 
 
 at more than 20 cents each- . 
 
 15.00 
 
 do --- 
 
 
 
 Cigars weighing not more than 
 
 
 
 
 3 pounds per 1,000 
 
 1.50 
 
 do 
 
 
 
 Cigarettes weighing not more 
 than 3 pounds j)er 1,000 
 
 Cigarettes weighmg moro than 
 3 pounds per 1,000 
 
 
 
 
 
 3.00 
 
 do 
 
 
 
 7.20 
 
 do 
 
 
 
 
 
 
 
 The act of July 1, 1862, went into operation September 1, 
 1862. 
 
 The act of July 20, 1868, first required payment of tax on 
 cigars by stamps. 
 
 Assessment of tax on cigars removed without stamps. 
 (Sec, 3371, p. 384.) 
 
 Digitized by Microsoft® 
 
106 CrGAR&, CIGARETTES, EJC. 
 
 Authority of commLssioner to. examine returns ©£ cigar 
 manufacturers and to treat deficiency in product based on 
 the return of one tliousanU cigars for every 25 pounds of 
 tobacco as prima facie evidence of nonpayment of |:axes. 
 (See note under sec. 3371, p. 384.) 
 
 Section 3362, amended, provides that fine-cut shorts, the 
 refuse of flne-eut chewing tobacco, refuse scraps, clippings, 
 cuttings, and sweepings of tobacco may be sold in bulk as 
 material and without the payment ol tax, by one manufac- 
 turer directly to another manufacturer, or for export, under 
 such restrictions, rules, and regulations as the Commissioner 
 of Internal Revenue may prescribe. This relates to cigar 
 manufacturers as well as manufacturers of tobacco. 
 
 Summary of sections of the act of August 5, 1909, effective 
 July 1,1910. (T. D. 1602.) 
 
 Increased rates of taxation under said act. (T. D. 1622 ; 
 T. D. 1629.) 
 
 Scrap tobacco, sweepings, cllpplnss, classified as " Un- 
 manufactured tobacco " under Tariff Act of 1897. (Latimer 
 V. United States, 223 U. S. 501.) 
 
 Cigars manufactured in bonded warehouses. Act of Oc- 
 tober 3, 1913. (T. D. 1919.) 
 
 Label on boxes of large cigars indicating class of tax pay- 
 ment. (T. D. 2595.) 
 
 Regulations concerning taxes on tobacco, snuff, cigars, 
 
 and cigarettes removed from' factory or customhouse on and 
 
 after October 4, 1917, subject to half additional tax and on 
 
 ^ and after November 2, 1917, sub.1ect to full additional tax 
 
 imposed by the act of October 3, 1917. (T. D. 2569.) 
 
 rfpareS"' ''fu^ S^*^- 3395. The Commissioner of Internal Revenue shall 
 iiishcd, and ac- cause to be prepared, for payment of the tax upon cigars, 
 counted for. mutable stamps denoting the tax thereon. Such stamps 
 shall be furnished to collectors requiring them, and col- 
 lectors shall, if there be any cigar-manufacturers within 
 their respective districts, keep on hand at all times a sup- 
 ply equal in amount to two months' sales thereof, and 
 shall sell the same only to the cigar-manufacturers who 
 have given bonds and paid the special tax, as required by 
 law, in their districts, respectively, and to importers of 
 cigars, who are required to affix the same to imported 
 cigars in the custody of customs officers, and to persons 
 required by law to affix the same to cigars on hand after 
 the first day of April, eighteen hundred and sixty-nine. 
 Record 47. Every collector shall keep an account of the number, 
 amount, and denominate values of the stamps sold by him 
 to each cigar-manufacturer, and to other persons above 
 described. 
 
 See sections 3445 and 3446 as amended (p. 586) as to 
 authority to prescribe how stamps shall be attached, can- 
 celed, etc. 
 
 See, also, section 3369, page 383. 
 
 Porto Rico. An act to provide means for the sale of in- 
 ternal-rex euue st;unps in the island of Porto Rico, approved 
 June 29, 1906. (See p. 620.) 
 
 Sale of internal-revenue stamps in the island of Porto 
 Rico, Circular No. 679, dated July 25, 1906 (T. D. 1031). 
 
 Sale of stiimps to a sheriff or constable. (25 Int. Rev. 
 Rec, 21.) 
 
 Regulations Sec. 3396. The Commissioner of Internal Revenue may 
 
 authorized. prescribe such regulations for the inspection of cigars, 
 
 cheroots, £l^;zi^&&^Mferc}iS0fe<3)he collection of the tax 
 
CIGARS, CIGARETTES, ETC. 407 
 
 thereon, as he may deem most effective for the pievention 
 of frauds in the payment of such tax. 
 
 The commissioner has authority to prescribe regi'lations 
 for the inspection of cigars and the collection of the tax 
 thereon. (LudlofE t'. Uhited States, 108 U. S., 176.) 
 
 Sec. 3397. [Amended by sec. 16, act of March 1, 1879 o^f^J'™^ ^^t^- 
 {20 Stat., 327). '\ Whenever any cigars are removed from fng,^stamping,°OT 
 any manufactory, or place where cigars are made, without ''™"<'"'s 
 being packed in boxes as required by the provisions of 
 this chapter, or without the proper stamp thereon denot- 
 ing the tax, or without stamping, indenting, burning, or 
 impressing into each box, in a legible and durable manner, 
 the number of the cigars contained therein, the number of 
 the manufactory, and the number of the district and the 
 State, or without properly affixing thereon and canceling 
 the stamp denoting the tax on the same, or are sold, or 
 offered for sale, not properly boxed and stamped, they 
 shall be forfeited to the United States. And every person Penalty, 
 who commits any of the above-described offenses shall be 
 fined for each such offense not less than one hundred 
 dollars nor more than one thousand dollars, and impris- 
 oned not less than six months nor more than two years. 
 
 And every person who packs cigars in any box bearing . tJsirg traudu- 
 
 J.1 j!Tij_ ij! -J. i_ \ ai lent or imitation 
 
 a false or fraudulent or counterfeit stamp, or who aflixes stamps. 
 
 to any box containing cigars a stamp in the similitude 
 
 or likeiiess of any stamp required to be used by the laws 
 
 of the United States, whether the same be a customs or 
 
 internal-revenue stamp, or who buys, receives, or has in 
 
 his possession any cigars on which the tax to which they 
 
 are liable has not been paid, or who removes, or causes to 
 
 be removed, from any box' any stamp denoting the tax 
 
 on cigars, with intent to use the same, or who uses, or 
 
 permits any other person to use, any stamp so removed, 
 
 or who receives, buys, sells, gives away, or has in his 
 
 possession any stamp so removed, or who makes anj' 
 
 other fraudulent use of any stamp intended for cigars, or 
 
 who removes from the place of manufacture any cigars 
 
 not properly boxed and stamped as required by law, 
 
 shall be deemed guilty of a felony, and shall be fined not Penalty. 
 
 less than one hundred dollars nor more than one thousand 
 
 dollars, and imprisoned not less than six months nor more 
 
 than three years. 
 
 Provided, That cigars packed expressly for export, and cigars packed 
 which shall be exported to a foreign country under the *""' '"p""'*- 
 restrictions and regulations prescribed by the Commis- 
 sioner of Internal Kevenue, and approved by the Secre- 
 tary of the Treasury, shall be exempt from the provisions 
 of this section, and also from the provisions of section 
 thirty-three hundred and ninety-three of the Eevised 
 Statutes, requiring a label to be affixed to each box. 
 
 See section 3445, page 589, relative to canceling stamps. 
 
 Affixing to a box containing domestic cigars a stamp in 
 the similitude of a customs stamp is an indictable offense, 
 and it is not necesgr^^in^t^^in^toent^^aver an intent 
 
408. CIGARS, CIGAEETTEB, ETC. 
 
 to defi-aud the United States. . (United States v. J^coby* 
 12 Blatchf. 491; Fed. Gas. No. 15462.) 
 
 AVhere a sheriff or constable removes cigare from a cigar 
 factory without the same being properly boxed and stamped, 
 and sells the same unstamped* he is liable to the penalty 
 prescribed. (T. D. 21167.) 
 
 Stamps on boxes of cigars must be properly affixed and 
 canceled to avoid liability to seizure. (T. D. 19063.) 
 
 Cigars removed from factory without stamping Into each 
 box the number of the manufactory and the number of the 
 district and State ; the natural inference is that the cigars 
 were removed from the factory in the condition in which. 
 ~ they were found. (Jackson v. United States., 21 Fed. 35 ; 30 
 
 Int. Rev. Rec, 279.) 
 
 United States v. Woolheim, 11 Int. Rev. Rec. 78; Fed. 
 Cas. No. 16761. 
 
 Boxes of cigars in the hands of innocent purchasers upon 
 which the number of the factory had not been impressed 
 forfeitable. (United States v. 76, 125 Cigars, 18 Fed. 147.) 
 
 Cigars exposed for sale outside of stamped packages. 
 (Cir. 643; T. D. 678.) 
 
 Cigars exposed for sale in boxes without covers. (T. Ds. 
 724, 788, 1287, .1296.) 
 
 UnstampdU cigars and cigarettes removed as "smokers." 
 (T. Ds. 1723, 1725, 1744.) 
 
 Absence of Sec. 3398. The absence of the proper revenue-stamp 
 ptompa^^evi^nce qj^ ^jjy Jjqx of cigai's sold, or oflPercd for sale, or kept for 
 o£ tax. sale, shall be notice to all persons that the tax has not 
 
 been paid thereon, and shall be prima-facie evidence of 
 the nonpayment thereof, and such cigars shall be for- 
 feited to the United States. 
 
 See section 8376, page 386 (T. D. 1296). 
 Cigars manu- Sec. 3399. Whenever cigars of any description are 
 'ha?es " "^cl^L" manufactured, in whole or in part, upon commission or 
 sion, ' or con- shares, or the material is furnished by one party and 
 stamped. ^"'^ manufactured by another, or the material is furnished 
 or sold by one party with an understanding or agree- 
 ment with another that the cigars are to be received in 
 payment therefor, or for any part thereof, the stamps 
 required by law shall be affixed by the actual maker be- 
 fore the cigars are removed from the place of manuf ac- 
 aity'^*"'^' '"'° turing. And in case of fraud on the part of either of 
 said parties in respect to said manufacture, or of any 
 collusion on their part with intent to defraud the reve- 
 nue, such material and cigars shall be forfeited to the 
 United States; and every person engaged in such fraud 
 or collusion shall be fined not less than one hundred dol- 
 lars nor more than five thousand dollars, and imprisoned 
 for not less than six months nor more than three years. 
 Forfeiture ^^ of Sec. 3400. Every manufacturer of cigars who removes 
 ing!'"etc.,'"con- or sells any cigars without payment of the special tax 
 « s7n e'°f a iTe as a cigar manufacturer, or without having given bond 
 ►tamps, etc. as such, or without the proper istamps denoting the tax 
 thereon ; or who makes false or fraudulent entries of the 
 manufacture or sale of any cigars; or makes false or 
 fraudulent entries of the purchase or sale of leaf -tobacco, 
 tobacco-stems, or other material used in tlie manufacture 
 Digitized by Microsoft® 
 
^ CIGARS, CIGARETTES, ETC. 409 
 
 of cigars; or who affixes any false, forged, spurious, 
 fraudulent, or counterfeit stamp, or imitation of any 
 stamp, required by law to any box containing any cigars, 
 shall, in addition to the penalties elsewhere provided in 
 this Title for such offenses, forfeit to the United States 
 all raw material and manufactured or partly manufac- 
 tured tobacco aiid cigai-s, and all machinery, tools, imple- 
 ments, apparatus, fixtures, boxes, barrels, and all other 
 materials which shall be found in his possession, or in 
 his manufactory, and used in his business as such manu- 
 facturer, together with his estate or interest in the build- 
 ing or factory, and the lot or tract of ground on which 
 such building or factory is located, and all appurte- 
 nances thereunto belonging. 
 
 See section 5413, Revised Statutes, page 680. 
 
 Machines used in violation of law, although leased from 
 a third person ignorant of such violation, are subject to 
 forfeiture. The owner is held to have acted with the 
 knowledge that the property would be subject to forfeiture 
 if the business was unlawfully conducted, and to have 
 taken the risk. (United States v. 220 Patented Machines, 
 99 Fed., 559 ;T. D. 54.) 
 
 The existence of a bona flde mortgage on personal 
 property will not prevent forfeiture. (United States v. 
 246 J pounds of Tobacco, 103 Fed., 791.) 
 
 Sec. 3401, {Obsolete.) Falsely representing cigars to 
 have been made prior to July 20, 1868. 
 
 Seo. 3402. All cigars imported from foreign countries imported ci- 
 shall pay, in addition to the import duties imposed thereon, fSmps", ^"w h"n 
 the tax prescribed by law for cigars manufactured in the a"ti by whom 
 United 'States, and shall have the same stamps affixed. " 
 The stamps shall be affixed and canceled by the owner or 
 importer of the cigars while they are in the /;ustody of 
 the proper custom-house officers, and the cigars shall not 
 pass out of the custody of such officers until the stamps 
 have been so affixed and canceled, but shall be put up in 
 boxes containing quantities as prescribed in this chapter 
 for cigars manufactured in the United States, before the 
 stamps are affixed. And the owner or importer of such 
 cigars shall be liable to all the penal provisions of this 
 Title prescribed for manufacturers of cigars manufac- 
 tured in the United States. Whenever it is necessary to 
 take any cigars so imported to any place other than the 
 public stores of the United States, for the purpose of 
 affixing and canceling such stamps, the collector of cus- 
 toms of the port where such cigars are entered shall 
 designate a bonded warehouse to which they shall be 
 taken, under the control of such customs officer as such 
 collector may direct. And every officer of customs who 
 permits any such cigars to pass out of his custody or con- 
 trol, without compliance by the owner or importer 
 thereof with the provisions of this section relating 
 thereto, shall be deemed guilty of a misdemeanor, and 
 shall be fined not less than one thousand dollars nor more 
 
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410 CIGAES, CIGABEXTES, ETC, 
 
 than five tliousand dollars, and imprisoned not less tlian 
 six months nor more than three years. 
 
 Relative to packing and stamping imported cigars : 
 
 Sec. 2804, amended act of Aug. 28, -1894, sec 26. No 
 cigars sl\ali be imported unless the same are packed iu 
 boxes of not more than five hundred cigars in each box ; 
 and no entry of any imported cigars shall be allowed of 
 less quantity than three thousand in a single package; and 
 all cigars on importation shall be placed in public store or 
 bonded warehouse, and shall not be removed therefrom until 
 the same shall have been inspected and a stamp affixed to 
 each box indicating such inspection, and also a serial num- 
 ber to be recorded in the custom house. And the Secretary 
 of the Treasury is hereby authorized to provide the requisite 
 stamps, and to make all necessary regulations for carrying 
 the above provisions of law into effect. 
 
 As to imported cigarettes, see section 3392 as amended, 
 page 399. 
 
 As to exportation of cigars, see imder tobacco, section 
 3385, page 390. 
 
 As to drawback on cigars. (Sec. 3886, p. 393.) 
 
 Instructions for stamping dome, tic cigars reimported. 
 {Regulations No. 8, pp. 64, 65.) 
 
 Cigars imported from the Philippines are not imported 
 from a foreign country. (24 Op. Atty. Gen., 120.) 
 
 Section 3377 as amended provides, " That scraps, cuttings, 
 and clippings of tobacco imported from any foreign country 
 may, after the proper customs duty has been paid thereon, 
 be withdrawn in bulk without the payment of the internal- 
 revenue tax, and transferred as material directly to the fac- 
 tory of a manufacturer of tobacco or snufC, or of a cigar 
 manufacturer, under such restrictions and regulations as 
 shall be prescribed by the Commissioner of Internal Revenue 
 and approved by the Secretary of the Treasury." 
 
 aft°r^"Aprii'*'i! ^^^- ^'^^- -^11 cigars of every description, on hand 
 1869. ' after the first day of April, eighteen hundred and sixty- 
 
 nine, shall be taken to have been either manufactured or 
 imported after the passage of the internal-revenue act 
 of July twentieth, eighteen hundred and sixty-eight, and 
 shall be stamped accordingly. 
 ported'"fiBa™8 Evcry pcrson who sells or offers for sale any imported 
 rot packed and cigars, or cigars purporting or claimed to have been im- 
 luired by^^aw; ported, not put UD ill packages and stamped as provided 
 penalty. Jjy ^j^^ chapter, shall be fined not less than five hundred 
 
 dollars nor more than five thousand dollars, and be im- 
 prisoned not less than six months nor more than two 
 years. 
 ■ re" not^brTnded ^^^" ^^04. Every person who purchases or .receives for 
 or™tamped ; pen^ Sale any clgars which have not been branded or stamped 
 ""' according to law, shall be liable to a penalty of fifty dol- 
 
 lars for each such offense. 
 
 Dealers, as well as manufacturers, are liable for selling 
 or offering for sale cigars not properly boxed and stamped. 
 (United States v. Edwards, 17 Int. Rev. Rec., 126; Fed. 
 Ca-s. No. 15025; United States v. Mena, 29 Int. Rev. Rec, 
 190.) 
 
 Buying cigars Sec. 3405. Every person who purchases or receives for 
 
 tm" ^X""has sale any cigars from any manufacturer who has not paid 
 
 not paid special ^j^g speciaU^ax-shall be jGiable for each offense to a penalty 
 
 of one huMmmmmmm forfeiture of all tie saiS 
 
CIGAES, CIGARETTES, ETC. 411 
 
 articles so purchased or received, or ol the full value 
 thereof. 
 
 Sec. 3406. Whenever any stamped box containing ^^^^,.^^^"^'"^,11^^°" 
 cigars, cheroots, or cigarettes, is emptied, it shall be the boxes to be cin 
 duty of the person in whose hands the same is to destroy for^Ife-iecr™'^ 
 utterly the stamps thereon. Any person who willfully 
 neglects or refuses so to do shall, for each such offense, 
 be fined not exceeding fifty dollars and imprisoned not 
 less than ten days nor more than six mpnths. And any 
 person who fraudulently gives away or accepts from an- 
 other or who sells, buys, or uses for packing cigars, che- 
 roots, or cigarettes, any such stamped box, shall for each 
 such offense be fined not exceeding one hundred dollars 
 and be imprisoned not more than one year. Any revenue emptie™8tempe°d 
 officer may destroy any emptied cigar-box upon which a <='8fav box. 
 cigar-stamp is found. 
 
 Section 3315, as amended by section 5, act March 1, 1879, 
 page 270, provides for restamping ■ packages of cigars and 
 ' cigarettes whicli have been duly stamped but from whicli 
 the stamps liave been lost or destroyed by unavoidable acci- 
 dent. 
 
 An act to reduce tarifC duties and to provide revenue for the Gov- 
 ernment, and for other purposes, approved October 3 1913 (38 
 
 Stat, 114). 
 
 MANinPAOTURE or ARTICLES INTENDED FOE EXPORTATION IN 
 BONDED WAREHOUSES. 
 
 Sec. IV. 'Par. M. * * * * * * * * * , ., 
 Provided, That cigars manufactured in whole of to- 
 bacco imported' from any one country, made and manu- im^fted 
 factured in such bonded manufacturing warehouses, may '""'"'• 
 be withdrawn for home consumption upon the payment 
 of the duties on such tobacco in its condition as imported 
 under such regulations as the Secretary of the Treasury 
 may prescribe, and the payment of the internal-revenue 
 tax accruing on such cigars in their condition as with- 
 drawn, and the boxes or packages containing such cigars 
 shall be stamped to indicate their character, origin of 
 tobacco from which made, and place of ma,nufacture. 
 
 Cigars made in bonded manufacturing warehouses. 
 (Customs Decision No. 33,783; Oct. 10, 1913; see T. D. 
 1919.) 
 
 Cigars from 
 
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Digitized by Microsoft® 
 
Chapter Ten. 
 OPIUM. 
 
 See. 
 
 [Act of January 17, 
 
 1. Opium manufactured for smok- 
 
 ing purposes ; manvifacturer 
 defined. 
 
 2. Notice ; inventories ; books ; re- 
 
 turns ; bond. 
 
 1914 (38 Stat., 275).] 
 
 Sec. 
 
 3. Tax paid by stamp. 
 
 4. General laws applicable. 
 
 5. Penalty ; forfeiture and destruc- 
 
 tion of opium. 
 
 6. Former provisions repealed. 
 
 [Act of December 17, 1914 (38 Stat., 785).] 
 
 1 (amended). Registration; spe- 
 cial tax ; records ; forfeitures. 
 
 2. Purchase orders ; prescriptions ; 
 
 exemptions. 
 
 3. Svyorn statement. 
 
 4. Shipments. 
 
 5. Inspection of order forms, etc. ; 
 
 certified copies of returns ; fees 
 of collectors. 
 
 6. (amended). Preparations ex- 
 
 empt ; records ; decocalnized 
 coca leaves. 
 
 of 
 
 7. Laws applicable ; possession 
 
 drugs; penalties. 
 
 8. Possession of drugs prohibited, 
 
 when; exemptions. 
 
 9. Penalties. 
 
 10. Appointment of agents, deputy 
 
 collectors, etc. 
 
 11. Appropriation. 
 
 12. Impairment or repeal of certain 
 
 acts. 
 
 [Act o£ February 24, 1919 (40 Stat., 1057).] 
 
 1(X>8. Selling, compounding, etc., of 
 opium, etc. ; seizures and for- 
 feitures. 
 
 An act regulating tlie manufacture of smoking opium within the 
 United States, and for other purposes. 
 
 Sec. 1. [Act of January 17, 19U {38 Stat, 275).]^ZlltJT " 
 That an internal-revenue tax of $300 per pound shall be 
 levied and collected upon all opium manufactured in the 
 United States for smoking purposes ; and no person shall 
 engage in such manufacture who is not a citizen of the 
 United States and who has not given the bond required 
 by the Commissioner of Internal Revenue. Every person 
 who prepares opium suitable for smoking purposes from 
 crude gum opium, or from any preparation thereof, or 
 from the residue of smoked or partially smoked opium, 
 commonly known as yen shee, or from any mixture of the 
 above, or any of them, shall be regarded as a manufac- 
 turer of smoking opium within the meaning of this act. 
 
 Sec. 2. That every manufacturer of such opium shall ^^^Notk;es,^^^^n. 
 file with the collector of internal revenue of the district boSC^signs, and 
 in which his manufactory is located such notices, inven- *^'^^'°'^ mimber. 
 torses, and bonds, shall keep such books and render such 
 returns of material and products, shall put up such signs 
 and affix such number to his factory, and conduct his 
 business under such surveillance of officers and agents as 
 the Commissioner of Internal Revenue, with the approval 
 
 413 
 
 Digitized by Microsoft® 
 
414 OPIUM. 
 
 of the Secretary of the Treasury, may by regulation re- 
 quire. But the bond required of such manufacturer shall 
 be with sureties satisfactory to the collector of internal 
 revenue, and in a penal sum of not less than $100,000; 
 and the sum of said bond may be increased from time to 
 time and additional sureties required, at the discretion of 
 the collector or under instructions of the Commissioner 
 of Internal Revenue. 
 Tax payable Sec. 3. That all opium prepared for smoking manufac- 
 by stamp. tured in the United States shall be duly stamped in such 
 
 a permanent manner as to denote the payment of the 
 internal-revenue tax thereon. 
 Existing laws Sec. 4. That the provisions of existing laws covering 
 tobacro'*™^ n°d *^^ engraving, issue, sale, accountability, effacement, can- 
 smiff applicable, cellation, and the destruction of stamps relating to to- 
 bacco and snuff, as far as applicable, are hereby made to 
 apply to stamps provided for by the preceding section. 
 j^jPenaity ; for- Sec. 5. That a penalty of not less than $10,000 or im- 
 stru"tio/ rf un- prisoument for not less than five years, or both, in the 
 stamped opium, discretion of the court, shall be imposed for each and 
 every violation of the preceding sections of this act relat- 
 ing to opium by any person or persons; and all opium 
 prepared for smoking wherever found within the United 
 States without the stamps required by this act shall be 
 forfeited and destroyed. 
 A c t October Sec. 6. The provisions of the act of October first, 
 hi p^a^r?: '""^'"^ eighteen hundred and ninety (Twenty-sixth Statutes, 
 page fifteen hundred and sixty-seven), in so far as they 
 relate to the manufacture of smoking opium, are hereby 
 repealed. 
 
 Regulations No. 16, revised ; May 15, 1915. (T. D. 2211.) 
 
 Aqueous extract of opium held to be opium suitable for 
 smoking purposes within the meaning of the act. (T. D. 
 1982.) 
 
 Manufacture of smoking opium defined. (T. Ds. 1697, 
 1761, 1765, 1770; Seldler v. United States, 228 Fed., 336.) 
 
 The Opium Law on its face is a law imposing a tax 
 for revenue purposes. (Lee Mow Lin v. United States, 
 250 Fed., 694.) 
 An act to prohibit the importation and use of opium for 
 
 other than medicinal purposes, approved February 9, 1909. 
 (35 Stat, 614), amended by act of January 17, 1914 (38 
 
 Stat., 275). 
 
 That after the first day of April, nineteen hundred and 
 nine, it shall be unlawful to import into the United States 
 opium in any form or any preparation or derivative thereof : 
 Provided, That opium and preparations and derivatives 
 thereof, other than smoking opium or opium prepared for 
 smoking, may be imported for medicinal purposes only, un- 
 der regulations which the Secretary of the Treasury is 
 hereby authorized to prescribe, and when so imported shall 
 be subject to the duties which are now or may hereafter he 
 imposed by law. 
 
 Sec. 2. That if any person shall fraudulently or know- 
 ingly import or bring into the United States, or assist in so 
 doing, any opium or any preparation or derivative thereof 
 contrary to law, or shall receive, conceal, buy, sell, or in 
 any manner facilitate the transportation, concealment, or 
 sale 0fg^2&cP6j)Hfl>7;(9/rofi6#®'"ation or derivative thereof 
 
OPIUM. 415 
 
 after importation, knowing tbe same to have been imported 
 contrary to law, such opium or preparation or derivative 
 thereof shall be forfeited and shall be destroyed and the 
 offender shall be fined in any sum not exceeding $5,000 nor 
 less than $50 or by imprisonment for any time not exceeding 
 two years, or both. Whenever, on trial for a violation of 
 this section, the defendant is shown to have, or to have hjid, 
 possession of such opium or preparation or derivative 
 thereof, such possession shall be deemed sufBcient evidence 
 to authorize conviction unless the defendant shall explain 
 the possession to the satisfaction of the jury. 
 
 Sec. 3. That on and after July first, nineteen hundred 
 and thirteen, all smoking opium or opium prepared for 
 smoking found within the United States shall be presumed 
 to have been imported after the first day of April, nineteen 
 hundred and nine, and the burden of proof shall be on the 
 claimant or the accused to rebut such presumption. 
 
 Sec. 4. That any person subject to the jurisdiction of the 
 United States .who shall, either as principal or as accessory, 
 receive or have in his possession, or conceal on board of or 
 transport on any foreign or domestic vessel or other water 
 craft or railroad car or other vehicle destined to or bound 
 from the United States or any possession thereof, any smok- 
 ing opium or opium prepared for smoking, or who, having 
 knowledge of the presence in or on any such vessel, water 
 craft, or vehicle of such article, shall not report the same to 
 the principal officer thereof, shall be subject to the penalty 
 prvided in section two of this act. Whenever on trial for 
 violation of this section the defendant is shown to have or 
 to have had possession of such opium, such possession shall 
 be deemed sufficient evidence to authorize conviction, unless 
 the defendant shall explain the possession to the satisfac- 
 tion of the jury : Provided, however. That any master of a 
 vessel or other water craft, or person in charge of a rail- 
 road car or other vehicle, shall not be liable under this 
 section if *he shall satisfy the jury that he had no knowledge 
 and used due diligence to prevent the presence of such 
 article in or on such vessel, water craft, car, or other vessel, 
 and any such article shall be forfeited and shall be de- 
 stroyed. 
 
 Sec. 5. That no smoking opium or opium prepared for 
 smoking shall be admitted Into the United States, or Into 
 any territory uijder the control or jurisdiction thereof, for 
 transportation to another country, nor shall such opium be 
 transferred or transshipped from one vessel to another ves- 
 sel within any waters of the United States for immediate 
 exportation or any other purpose. 
 
 Sec. 6. That hereafter it shall be unlawful for any per- 
 son subject to the jurisdiction of the United States to ex- 
 port or cause to be exported from the United States, or 
 from territory under Its control or jurisdiction, or from 
 countries in which the United States exercises extraterri- 
 torial jurisdiction, any opium or cocaine, or any salt, deriv- 
 ative, or preparation of opium or cocaine, to any other 
 country : Provided, That opium or cocaine, and salts, de- 
 rivatives, or preparations thereof, except smoking opium or 
 opium prepared for smoking, the exportation of which is 
 hereby absolutely prohibited, may be exported to countries 
 regulating their entry under such regulations as are pre- 
 scribed by such country for the importation thereof into 
 such country, such regulations to be promulgated from time 
 to time by the Secretary of State of the United States. 
 
 The Secretary of State shaU request all foreign Govern- 
 ments' to comnmnicate through the diplom.ltlc channels 
 copies of laws and regulations promulgated in their respec- 
 tive countries which prohibit or regulate the Importation of 
 
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416 OPruM. 
 
 the aforesaid drugs, and when received advise the Secretary 
 of the Treasury and the Secretary of Commerce Whererif ; 
 whereupon the Secretary of State, the Secretary of the 
 Treasury, and the Secretary of Commerce shall make and 
 publish all proper regulations for carrying the provisions of 
 this section into effect. 
 
 Sec. 7. That any person who exports or causes to be ex- 
 ported any of the aforesaid drugs in violation of the pre- 
 ceding section shall be fined In any sum not exceeding 
 $5,000 nor less than $50, or by imprisonment for any time 
 not exceeding two years, or both. And one-half of any fine 
 recovered from any person or persons convicted of an of- 
 fense under any section of this act may be paid to the 
 person or persons giving information leading to such recov- 
 ery, and one-half of any bail forfeited and collected in any 
 proceedings brought under this act may be paid to the 
 person or persons giving the information which led to the 
 institution of such proceedings, if so directed by the court 
 exercising jurisdiction in the case: Provided, That no pay- 
 ment for giving information shall be made to any officer 
 or employee of the United States. 
 
 Sec. 8. That whenever opium or cocaine or any priepara- 
 tions or derivatives thereof shall be found upon any vessel 
 arriving at any port of the United States which is not 
 Shown upon the vessel's manifest, as is provided by sections 
 twenty-eight hundred and six and twenty-eight hundred 
 and seven of the Revised Statutes, such vessel shall be 
 liable for the penalty and forfeiture prescribed in section 
 twenty-eight hundred and nine of the Revised Statutes. 
 
 Customs regulations Issued under act of February 9, 
 1909. (T. Ds. 34221, 344.52.) 
 
 Paragraph 47, Schedule A of the tarifE act of October 3, 
 1913, imposed duties on opium or preparations or deriva- 
 tives thereof, as follows : ^ 
 
 " Opium, crude or unmanufactured, and not adulterated, 
 containing 9 per centum and over of morphia, $3 per 
 pound ; opium of the same composition, dried to contain 15 
 per centum or less of moisture, powdered, or otherwise ad- 
 vanced beyond the condition of crude or unmanufactured, 
 $4 per pound; morphia or morphine, sulphate of, and all 
 alkaloids of opium, and salts and esters thereof, $3 per 
 ounce; cocaine, ecgonine, and all salts and derivatives of 
 the same, $2 per ounce; aqueous ^ extract of opium, for 
 medicinal uses, and tincture of, as laudanum, and other 
 liquid preparations of opium, not specially provided for in 
 this section, 60 per centum ad valorem ; opium containing 
 less than 9 per centum of morphia, $6 per pound ; but prep- 
 arations of opium deposited In bonded warehouses shall 
 not be removed therefrom without payment of duties, and 
 such duties shall not be refunded : Provided, That nbthing 
 herein contained shall be so construed as to repeal or in any 
 manner Impair or affect the provisions of an act entitled ' An 
 act to prohibit the importation and use of opium for other 
 than medicinal purposes,' approved February ninth, nine- 
 teen hundred and nine." 
 
 Section 1 held constitutional. (Lee Mow Lin v. United 
 States, 250 Fed., 694.) 
 
 Testimony of expert chemist that opium in question was 
 of domestic manufacture was properly admitted. (Id.) 
 
 Government, on prosecution for manufacture of opium 
 for smoking purposes without giving of the bond required 
 by Commissioner of Internal Revenue, must show that Com- 
 missioner had, by regulation, required a bond, and what it 
 called for. (Chin Sing v. United States, 227 Fed., 396.) 
 
 Government must show making of regulations and what 
 they were. (Id.) 
 
 Government must show existence of stamp to denote pay- 
 ment 0^ft?^j(^i/tft^^©^ej!p®, required by regulatiofis of 
 
OPIUM. 
 
 417 
 
 Ooiiuiiissioner with' approval of Secretary of Treasury. 
 (Id.) 
 
 Section 2 held constitutional. (Thompson v. United 
 States, 258 Fed. 196.) 
 
 It is an offense for a registered physidan to sell nar- 
 cotics. (Id.) 
 
 "Evidence that defendants charged as unlawful dealers in 
 narcotics had considerable quantity of morphine in their 
 possession several months before in another district, was 
 incompetent, where It was shown that they were habitual 
 users of the drug. (Paris v. United States, 260 Fed., 529.) 
 
 ACT OF DECEMBER 17, 1914 (38 STAT., 785). 
 
 AN ACT To provide for the registration of, with collectors of 
 internal revenue, and to impose a special tax upon all persons 
 who produce, import, manufacture, compound, deal in, dispense, 
 sell, distribute, or give away opium or coca leaves, their salts, 
 derivatives, or preparations, and for other purposes. 
 
 Sec. 1. [^Amended by section 1006, act of February 2^, persona who 
 1919 (40 Stat., 1057).'] That on or before July 1 of each »« required to 
 
 ^ . ' ',-■ . . Pi 1 register. 
 
 year every person who imports, manuractures, produces, 
 compounds, sells, deals in, dispenses, or gives away opium 
 or coca leaves, or any compound, manufacture, salt, de- 
 rivative, or preparation thereof, shall register with the 
 collector of internal revenue of the district his name or 
 style, place of business and place or places where such 
 business is to be carried on, and pay the special taxes 
 hereinafter provided ; 
 
 Every person who on January 1, 1919, is engaged in any 
 of the activities above enumerated, or who between such 
 date and the passage of this Act first engages in any of 
 such activities, shall within 30 days after the passage of 
 this Act make like registration, and shall pay the pro- 
 portionate part of the tax for the period ending June 
 30, 1919 ; and 
 
 Every person who first engages in any of such activities 
 after the passage of this Act shall immediately make like 
 registration and pay the proportionate part of the tax 
 for the period ending on the following June 30th ; 
 
 Importers, manufacturers, producers, or compounders, Special taz. 
 $24 per annum ; wholesale dealers, $12 per annum ; retail 
 dealers, $6 per annum; physicians, dentists, veterinary 
 surgeons, and other practitioners lawfully entitled to dis- 
 tribute, dispense, give away, or administer any of the 
 aforesaid drugs to patients upon whom they in the course 
 of their professional practice are in attendance, shall pay 
 $3 per annum. 
 
 Every person who imports, manufactures, compounds, 
 or otherwise produces for sale or distribution any of the 
 aforesaid drugs shall be deemed to be an importer, manu- 
 facturer, or producer. 
 
 Every person who sells or offers for sale any of said 
 drugs in the original stamped packages, as hereinafter 
 provided, shall be deemed a wholesale dealer. 
 
 Every person who sells or dispenses from original 
 stamped packages, as hereinafter provided, shall be 
 
 140184°— 20 27 Digitized by Microsoft® 
 
 Definitions.' 
 
.4:18 OPIUM. 
 
 deemed a retail dealer: Provided, That the office, or if 
 none, the residence, of any person shall be considered for 
 the purpose of this Act his place of business ; but no em- 
 ployee of any person who has registered and paid special 
 lax as herein required, acting within the scope of his em- 
 ployment, shall be required to register and pay special 
 tax provided by this section: Provided further. That 
 officials of the United States, Territorial, District of 
 Columbia, or insular possessions, State or municipal gov- 
 ernments, who in the exercise of their official duties 
 engage in any of the business herein described, shall not 
 be required to register, nor pay special tax, nor stamp the 
 aforesaid drugs as hereinafter prescribed, but their right 
 to this exemption shall be evidenced in such manner as the 
 Commissioner of Internal Revenue, with the approval of 
 the Secretary of the Treasury, may by regulations 
 prescribe. 
 ister^"and*° "fy I* shall be Unlawful for any person required to register 
 special tax. uudcr the provisions of this Act to import, manufacture, 
 produce, compound, sell, deal in, dispense, distribute, ad- 
 minister, or give away any of the aforesaid drugs without 
 having registered and paid the special tax as imposed by 
 this section. 
 ciu'de^'^^Tartner- That the word " pcrson " as used in this Act shall be 
 ship, etc. construed to mean and include a partnership, association, 
 
 company, or corporation, as well as a natural person : and 
 all pro\-isions of existing law relating to special taxes, as 
 far as necessary, are hereby extended and made applicable 
 to this section. 
 nuelSllvied!^' That there shall be levied, assessed, collected, and paid 
 upon opium, coca leaves, any compound, salt, derivative, 
 or preparation thereof, produced in of imported into the 
 United States, and sold, or removed for consumption or 
 sale, an internal-revenue. tax at the rate of 1 cent per 
 ounce, and any fraction of an ounce in a package shall 
 be taxed as an ounce, such tax to be paid by the importer, 
 manufacturer, producer, or compounder thereof, and to 
 be represented by appropriate stamps, to be provided 
 by the Commissioner of Internal Eevenue, with the ap- 
 proval of the Secretary of the Treasury ; and the stamps 
 herein provided shall be so affixed to the bottle or other 
 container as to securely seal the stopper, covering, or 
 wrapper thereof. 
 
 The tax imposed by this section shall be in addition 
 to any import duty imposed on the aforesaid drugs. 
 pemi'nr'or Vur- ^^ shall be uulawful for any person to purchase, sell, 
 chasing of drugs, dispensc. Or distribute any of the aforesaid drugs except 
 in the original stamped package or from the original 
 stamped package; and the absence of appropriate tax- 
 paid stamps from any of the aforesaid drugs shall be 
 prima facie evidence of a violation of this section by the 
 person in whose possession same may be found ; and the 
 possessioit)ft|f,fg3j>y)gf)5y^§^ped package containing 
 
OPIUM. 419 
 
 any of the aforesaid drugs by any person who has not 
 registered and paid special taxes as required by this sec- 
 tion shall be prima facie evidence of liability to such 
 special tax : Provided, That the provisions of this para- 
 graph shall not apply to any person having in his or her 
 possession any of the aforesaid drugs which have been 
 obtained from a registered dealer in pursuance of a pre- 
 scription, written for legitimate medical uses, issued by a 
 physician, dentist, veterinary surgeon, or other prac- 
 titioner registered under this Act; and where the bottle 
 or other container in which such drug may be put up by 
 the dealer upon said prescription bears the name and 
 registry number of the druggist, serial number of pre- 
 scription, name and address of the patient, and name, 
 address, and registry number of the person writing said 
 prescription; or to the dispensing or administration, or 
 giving away of any of the aforesaid drugs to a patient 
 by a registered physician, dentist, veterinary surgeon, or 
 other practitioner in the course of his professional prac- 
 tice, and where said drugs are dispensed or administered 
 to the patient for legitimate medical purposes, and the 
 record kept as required by this Act of the drugs so dis- 
 pensed, administered, distributed, or given away. 
 
 And all the provisions of existing laws relating to the ^f ejdJtiiS'^'iaw^ 
 engraving, issuance, sale, accountability, cancellation, 
 and destruction of tax-paid stamps provided for in the 
 internal-revenue laws are, in so far as necessary, hereby 
 extended and made to apply to stamps provided by this 
 section. 
 
 That all unstamped packages of the aforesaid drugs jo,||4™re '^ " "^ 
 found in the possession of any person, except as herein 
 provided, sliall be subject to seizure and forfeiture, and 
 all the provisions of existing internal-revenue laws re- 
 lating to searches, seizures, and forfeitures of unstamped 
 articles are hereby extended to and made to apply to the 
 articles taxed under this Act and the persons upon whom 
 these taxes are imposed. 
 
 Importers, manufacturers, and wholesale dealers shall ^^.f^° °^^'^ '^e- 
 keep such books and records and render such monthly tmm. 
 returns in relation to the transactions in the aforesaid 
 drugs as the Commissioner of Internal Eevenue, with 
 the approval of the Secretary of the Treasury, may by 
 regulations require. 
 
 The Commissioner of Internal Eevenue, with the ap- ^ ^^A^^^ ^"'^ 
 proval of the Secretary of the Treasury, shall make all "'^" " '""'' 
 needful rules and regulations for carrying the provisions 
 of this Act into effect. 
 
 Sec. 2. Tliat it shall be unlawful for any person to sell, ^J^^'lll^^^ "- 
 barter, exchange, or give away any of the aforesaid drugs 
 except in pursuance of a written order of the person to 
 whom such article is sold, bartered, exchanged, or given, 
 on a form to be issued in blank for that purpose by the 
 Commissioner of Internal Eevenue. Everv person who 
 shall accept any such o^^FSgf<|)>iA7;^ig^Mce thereof 
 
420 OPIUM. 
 
 piewfved lor ''I s^all scll, barter, exchange, or give away any of the afore- 
 years. inspee- said drugs, shall preserve such order for a period of two 
 officer", ^I!^en?^ years in such a way as to be readily accessible to inspec- 
 ^'"^^ tion by any. officer, agent, or employee of the Treasury 
 
 Department duly authorized for that purpose, and the 
 State, Territorial, District, municipal, and insular offi- 
 cials named in section five of this act. Every person who 
 shall give an order as herein provided to any other per- 
 .ler^^to'^^be ?^' ^^^ ^^^ ^^J ^f the aforcsald drugs shall, at or before 
 lained by pur- the timie of giviug such order, make or cause to be made 
 a duplicate thereof on a form to be issued in blank for 
 that purpose by the Commissioner of Internal Revenue, 
 and in case of the acceptance of such order, shall pre- 
 serve such duplicate for said period of two years in such 
 a way as to be readily accessible to inspection by the offi- 
 cers, agents, employees, and officials hereinbefore men- 
 tioned. Nothing contained in this section .shall apply — 
 r> ,^„^*"i?!i™I^ (a) To the dispensing or distribution of any of the 
 
 Drugs dispensed j.^ ' • ■• ■, .-^ i-xi i ■• i.-. 
 
 to patient, in atoresaiQ drugs to a patient by a physician, dentist, or 
 certain cares. veterinary surgeon registered under this act in the course 
 of his professional practice only : Provided, That such 
 physican, dentist, or veterinary surgeon shall keep a rec- 
 ord of all such drugs dispensed or distributed, showing 
 the amount dispensed or distributed, the date, and the 
 name and address of the patient to whom such drugs are 
 dispensed or distributed, except such as may be dispensed 
 or distributed to a patient upon whom such physician, 
 'dtotist, or veterinary surgeon shall personally attend ; 
 and such record shall be kept for a period of two years 
 from the date of dispensing or distributing such drugs, 
 subject to inspection, as provided in this act. 
 How*to"bei°s"u^ ^^^ "^^ *^® ^^^®' dispensing, or distribution of any of 
 aDd^signc^.'^'"* the aforesaid drugs by a dealer to a consumer under and 
 in pursuance of a written prescription issued by a physi- 
 cial, dentist, or veterinary surgeon registered under this 
 act : Provided, however, That such prescription shall he 
 dated as of the day on which signed and shall be signed 
 by the physician, dentist, or veterinary surgeon who shall 
 Preseriptions have issued the same: And provided further, That such 
 jcr 2*yearT'^' dealer shall preserve such prescription for a period of 
 two years from the day on which such prescription is 
 filled in such a way as to be readily accessible to inspec- 
 tion by the officers, agents, employees, and officials here- 
 inbefore mentioned. 
 Drags 'shipped' to (*') '^^ *-^® ^^''®' exportation, shipment, or delivery of 
 a foreign coun- any of thc aforesaid drugs by any person within the 
 '"^^ ■ United States or any Territory or the District of Colum- 
 
 bia or any of the insular possessions of the United States 
 to any person in any foreign country, regulating their 
 entry in accordance with such regulations for importation 
 thereof into such foreign country as are prescribed by 
 said country, such regulations to be promulgated from 
 time to tiag/l^eadft)^ MefiSt^^f State of the United 
 States. - ■ 
 
OPIUM. 421 
 
 (d) To the sale, barter, exchange, or giving away of DepaJtment"" o1 
 any of the aforesaid drugs to any officer of the United Army, Navy, etc. 
 States Government or of any State, Territorial, District, 
 county, or municipal or insular government lawfully en- 
 gaged in making purchases thereof for the various de- 
 partments of the Army, Navy, the Public Health Service, 
 and for Government, State, Territorial, District, county, 
 or municipal or insular hospitals or prisons. 
 
 The Commissioner of Internal Eevenue, with the ap- ^ ^^"^ *s^' 
 
 to DC T^irOTlQ^Q 
 
 proval of the Secretary of the Treasury, shall cause suit- 
 able forms to be prepared for the purposes above men- 
 tioned, and shall cause the same to be distributed to col- 
 lectors of internal revenue for sale by them to those per- 
 sons who shall have registered and paid the special tax as 
 required by section one of this act in their districts, re- 
 spectively ; and no collector shall sell any of such forms 
 to any persons other than a person who has registered and 
 paid the special tax as required by section one of this act 
 in his district. The price at which such forms shall be ®*'' "' ^""°- 
 sold by said collectors shall be fixed by the Commissioner 
 of Internal Revenue, with the approval of the Secretary 
 of the Treasury, but shall not exceed the sum of $1 per 
 hundred. Every collector shall keep an account of the iteep°"account *of 
 number of such forms sold by him, the names of the pur- i-aies. 
 chasers, and the number of such forms sold to each of 
 such purchasers. Whenever any collector shall sell any 
 of such forms, he shall cause the name of the purchaser 
 thereof to be plainly written or stamped thereon belore 
 delivering the same; and no person other than such pur- soid'^"oniy° to 
 chaser shall use any of said forms bearing the name of ^"^^"1 ^. ^ •> o 
 such purchaser for the purpose of procuring any of the '*™ '^°'^ 
 aforesaid drugs, or furnish any of the forms bearing the 
 same of such purchaser to any person with intent thereby 
 to procure the shipment or delivery of any of the afore- 
 said drugs. It shall be unlawful for any person to obtain uniawM use 
 by means of said order forms any of the aforesaid drugs °^ '°™"' 
 for any purpose other than the use, sale, or distribution 
 thereof by him in the conduct of a lawful business in said 
 drugs or in the legitimate practice of his profession. 
 
 The provisions of this act shall apply to the United 
 States, the District of Columbia, the Territory of Alaska, 
 the Territory of Hawaii, the insular possessions of the Porto Rico 
 United States, and the Canal Zone. In Porto Eico and Isfands.^"""^'"' 
 the Philippine Islands the administration of this act, the 
 collection of the said special tax, and the issuance of the 
 order forms specified in section two shall be performed 
 by the appropriate internal-revenue officers of those gov- 
 ernments, and all revenues collected hereunder in Porto 
 Eico and the Philippine Islands shall accrue intact to 
 the general governments thereof, respectively. The 
 courts of first instance in the Philippine Islands shall 
 possess and exercise jurisdiction in all cases arising under 
 this act in said islandsy^ The president is authorized and 
 directed to issue such ^'xecutive orders as will carry into 
 
422 
 
 OPIUM. 
 
 Canal Zone, dfeet in the Canal Zoue the. intent and pui-pose of this 
 act by providing for the registration ana the imposition 
 of a special tax upon all persons in the Canal Zone who 
 produce, import, compound, deal in, dispense, sell, dis- 
 tribute, or give away opium or coca leaves, their salts, 
 derivatives, or preparations. 
 
 Sec. 3. That any person who shall be registered in any 
 internal-revenue district under the provisions of section 
 one of this act shall, whenever required so to do by the col- 
 coiiector may lector of the district, render to the said collector a true 
 statofent \s 'to ^^^ Gorrect Statement or return, verified by affidavit, 
 drugs received. Setting forth the quantity of the aforesaid drugs received 
 by him in said internal-revenue district during such 
 period immediately preceding the demand of the collector, 
 not exceeding three months, as the said collector may fix 
 and determine ; the names of the persons from whx)m the 
 said drugs were received ; the quantity in each instance re- 
 ceived from each of such persons, and the date when 
 received. 
 drugs'^TrUawM! ^Ec. 4. That it shall be imlawful for any person who 
 except— ' shall not have registered and paid the special tax as re- 
 
 quired bj' section one of this Act to send, ship, carry, or 
 deliver any of the aforesaid drugs from any State or Ter- 
 ritory or the District of Columbia, or any insular posses- 
 sion of the United States, to any person in any other 
 State or Territory or the District of Columbia or any in- 
 sular possession of the United States: Provided, That 
 nothing contained in this section shall apply to common 
 carriers engaged in transporting the aforesaid drugs, or 
 to any employee acting within the scope of his employ- 
 pioyees exempt, mcnt, of any person who shall have registered and paid 
 the special tax as required by section one of. this Act, or to 
 any person who shall deliver any such drug which has 
 been prescribed or dispensed by a physician, dentist, or 
 veterinarian required to register under the terms of this 
 Act, who has been employed to prescribe for the particu- 
 lar patient receiving such drug, or to any United States, 
 State, county, municipal. District, Territorial, or insular 
 officer or official acting within, the scope of his official 
 duties. 
 p.?'c'riptrom: Sec. 6. That the duplicate-order forms and the pre^ 
 fiM t ^*1*™^"'^ scriptions required to be preserved under the provisions 
 lo'^ ins^ertion^of of section two of this Act, and the statements or returns 
 officers. gjg^ j^ jjj^g office of the collector of the district, under the 
 
 provisions of section three of this Act, shall be open to 
 inspection b,y officers, agents, and employees of the 
 Treasury Department duly authorized for that purpose; 
 and such officials of any State or Territory, or of any 
 organized municipality therein, or of the District of Co- 
 lumbia, or any insular possession of the United States, 
 as shall be charged with the enforcement of any law or 
 municipal ordinance regulating the sale, prescribing, dis- 
 pensing, de^^i,M-y;j|Mj-^.^n of the aforesaid di-ug^ 
 Each collector of internar revenue is hereby authorized 
 
 Common car- 
 riers and em- 
 
OPIUM. 423 
 
 to furnish, upon written request, certified copies of any ie»°oT'statement9 
 of the said statements or returns filed in his office to any and returns to 
 of such officials of any State or Territory or organized couicTors!*""' ^^ 
 municipality therein, or the District of Columbia, or any 
 insular j)ossession of the United States, as shall be en- 
 titled to inspect the said statements or returns filed in the 
 office of the said collector, upon the payment of a fee of 
 $1 for each one hundred words or fraction thereof in the 
 copy or copies so requested. Any person who shall dis- ^'''"'• 
 close the information contained in the said statements 
 or returns or in the said duplicate- order forms, except as ^^^i'^^^^^ ilt°'. 
 herein expressly provided, and except for the purpose of mation. except— 
 enforcing the provisions of this Act, or for the purpose 
 of enforcing any law of any State or Territor}- or the 
 District of Columbia, or any insular possession of the 
 United States, or ordinance of any organized munici- 
 pality therein, regulating the sale, prescribing, dispens- 
 ing, dealing in, or distribution of the aforesaid drugs, 
 shall, on conviction, be fined or imprisoned as provided 
 by section nine of this Act. And collectors of internal 
 revenue are hereby authorized to furnish upon written 
 request, to any person, a certified copy of the names of , certtaed list 
 
 ^ ' , J t- > 1 T . n'- "1 , 1 • i- of names may 
 
 any or all persons who may be listed in their respective be furnished. 
 collection districts as special-tax payers under the pro- 
 visions of this act, upon payment of a fee of $1 for each 
 one hundred names or fraction thereof in the copy so re- 
 quested. 
 
 Seo. 6. [Amended hy sec. 1007, act of February 
 2i, 1919 (40 Stat., 1057). \ That the provisions of thispiy'^t"" certafn 
 Act shall not be construed to apply to the manufacture, preparations, etc. 
 sale, distribution, giving away, dispensing, or posses- 
 sesion of preparations and remedies whicli do not con- 
 tain more than two grains of opium, or more than one- 
 fourth of a grain of morphine, or more than one-eighth 
 of a grain of heroin, or more than one grain of ccdeine, 
 or any salt or derivative of any of them in one fluid 
 ounce, or, if a solid or semisolid preparation, in one 
 avoirdupois ounce; or to liniments, ointments, or other 
 preparations which are prepared for external use, only, 
 except liniments, ointments, and other preparations 
 which contain cocaine or any of its salts or alpha or 
 beta eucaine or any of their salts or any synthetic sub- 
 stitute for them: Provided, That such remedies and 
 preparations are manufactured, sold, distributed, given posed" ' """' *"' 
 away, dispensed, or possessed as medicines and not for 
 the purpose of evading the intentions and provisions of 
 this Act : Provided further. That any manufacturer, pro- 
 ducer, compounder, or vendor (including dispensing ^^°^^- 
 physicians) of the preparations and remedies mentioned 
 in this section shall keep a record of all sales, exchanges, 
 or gifts of such preparations and remedies in such man- 
 ner as the Commissioner of Internal Eevenue, with the 
 approval of the Secretary, of, the.Treasury, shall direct. 
 ^^ Digitized by Microsoff& 
 
424 OPIUM. 
 
 Such record shall be preserved for a period of two years 
 in such a way as to be readily accessible to inspectioii 
 by any officer, agent or employee of the Treasury De- 
 partment duly authorized for that purpose, and the 
 State, Territorial, District, municipal, and insular offi- 
 cers named in section 5 of this Act, and every such per- 
 son so possessing or disposing of such preparations and 
 remedies shall register as required in section 1 of this 
 Act and, if he is not paj'ing a tax under this Act, he shall 
 pay a special tax of $1 for each year, or fractional part 
 thereof, in which he is engaged in such occupation, to 
 the collector of internal revenue of the district in which 
 he carries on such occupation as "provided in this Act. 
 Deeocoainized Thc" provisious of this Act as amended shall not apply 
 coca leavet. j.^ (jecocoainized coca leaves or preparations made there- 
 from, or to other preparations of coca leaves which do 
 not contain cocaine. 
 Certain reve- Qec. 7. That all laws relating to the assessment, col- 
 
 rae laws made , ,• -. ij!n^'i i 1 
 
 applicable. Icctiou, rcmissiou, and rctund of mternal-revenue taxes, 
 
 including section thirty-two hundred and twenty-nine of 
 the Eevised Statutes of the United States, so far as 
 applicable to and not inconsistent with the provisions 
 of this act, are hereby extended and made applicable to 
 the special taxes imposed by this act. 
 
 drug"' prohibited! Sec. 8. That it shall be unlawful for any person not 
 
 except. ' registered under the provisions of this act, and who has 
 
 not paid the special tax provided for by this act, to have 
 iu' his possession or under" his control any of the afore- 
 said drugs ; and such possession or control shall be pre- 
 sumptive evidence of a violation of this section, and 
 also of a violation of the provisions of section one of 
 
 6on^%xempt. ^"' this act : Provided^ That this section shall not apply to 
 any employee of a registered person, or to a nurse un- 
 der the supervision of a physician, dentist, or veterinary 
 surgeon registered under this act, having such posses- 
 sion or control by virtue of his employment or occupa- 
 tion and not on his own account ; or to the possession of 
 any of the aforesaid drugs which has or have been pre- 
 scribed in good faith bj' a physician, dentist, or veteri- 
 nary surgeon registered under this act ; or to any United 
 States, State, county, municipal. District, Territorial,, or 
 insular officer or official who has possession of any. said 
 drugs, by reason of his official duties, or to a warehouse- 
 man holding possession for a person registered and who 
 lias paid the taxes under this act; or to common car- 
 riers engaged in transporting such drugs: Provided-fur- 
 ther, That it shall not be necessary to negative any of 
 the aforesaid exemptions in any complaint, information, 
 
 roo"oif defend- ^'^'^^'^*''"^"*' ^'^ othcr writ or proceeding laid Or brought 
 ant. under this act; and the burden of proof of any such 
 
 exemption shall be upon the defendant. 
 
 Sec. 9. That any person who violates of fails to com- 
 ply with 0}p/^c/^/Wfta^S?9»®nts of this -act shall, on 
 conrviction, oe fined not more than $2,000 or be im- 
 
 Pcnalties. 
 
OPIUM. 425 
 
 prisoned not more than five years, or both, in the discre- 
 tion of the court. 
 
 Sec. 10. The Commissioner of Internal Eevenue, with „, tfenti," d"pll- 
 the approval of the Secretary of the Treasury, is author- ty collectors, etc. 
 ized to appoint such agents, deputy collectors, inspectors, 
 chemists, assistant chemists, clerks, and messengers in 
 the field and in the Bureau of Internal Revenue in the 
 District of Columbia as may be necessary to enforce the 
 provisions of this act. 
 
 Sec. 11. That the sum of $150,000, or so much thereof Appropriation. 
 as may be necessary, be, and hereby is, appropriated, 
 out of any moneys in the Treasury not otherwise appro- 
 priated, for the purpose of carrying into effect the pro- 
 visions of- this act. 
 
 Sec. 12. That nothing contained in this act shall be „'*^9' "f to.*"* 
 
 , I , • • ^P 1 1 J. ,1 construed as im- 
 
 construed to impair, alter, amend, or repeal any of the pairing or re- 
 provisions of the act of Congress approved June thir- acti'"*^ certain 
 tieth, nineteen hundred and six, entitled "An act for 
 preventing the manufacture, sale, or transportation of 
 adulterated or misbranded, or poisonous, or deleterious 
 foods, drugs, medicines, and liquors, and for regulating 
 traflBc therein, and for other purposes," and any amend- 
 ment thereof, or of the act approved February ninth, 
 nineteen hundred and nine, entitled " An act to prohibit 
 the importation and use of opium for other than me- 
 dicinal purposes," and any amendment thereof. 
 
 Regulations No. 35, revised. (T. D. 2126.) 
 • Act declared constitutional. (United States v. Brown, Decisions re- 
 224 Fed., 1.35 ; T. D. 2204 ; United States v. Sussman, T. D. lating to Act ot 
 2239; United States v. Doremus, 249 U. S. 86, T. D. 2809; ?a\^^'°''" "• 
 Thompson v. United States, 258 Fed., 196, T. D. 2887 ; United 
 States V. Denker, 255 Fed., 339 ; Webb v. United States, 249 
 U. S. 96 ; United States v. Lowenthal, 257 Fed., 444 ; Fore- 
 man V. United States, 255 Fed., 621.) 
 
 ■ To sustain constitutionality not necessary to hold that it 
 Is designed to protect the revenues of the United States. 
 (United States r. Charter, 227 Fed., 331.) 
 
 Making direct sales to addicts in other than legitimate 
 practice of profession of physician, an offense. (Baldwin 
 V. United States, 238 Fed., 793.) 
 
 It is assumed that the statute has a moral end, as well as 
 revenue, in view, but it reaches this end within the limits 
 of a revenue measure. The words " any person not regis- 
 tered " in section 8 must be taken to refer to the persons 
 who are required to register. (United States v. Jin Fuey 
 Moy, 241 U. S., 394, T. D. 2340; affirming 225 Fed., 1003.) 
 
 Mere possession of opium after July 1, 1913, constitutes 
 an offense, unless party indicted rebuts presumption of im- 
 portation, regardless of purpose for which he may have had 
 it in his possession, and while purpose of defendant's pos- 
 session seemed to be sufficiently explained, this did not 
 rebut the ^ presumption of importation contrary to law. 
 (United States i;. Johnson, 228 Fed., 251.) 
 
 Indictment charging that defendant violated act by giv- 
 ing order for opium, and, after acceptance, failed to pre- 
 serve duplicate so as to be readily accessible, was sufficient, 
 though alleging date of offense no more definitely than 
 some unknown date within two-year period, which did not 
 tend to defendantjS. prejudice. . /United States v. Gaag, 
 
 237 Fed., 728.). Digitizea by Microsoft® 
 
426 OPIUM. 
 
 Physidian who issues ppeecription which shows on its 
 face that quantity prescribed Is unreasonable and unusual, 
 or a dealer who fills such a prescription or order issued by 
 a physician, is guilty of an offense, unless prescription indi- 
 cates necessity for such an unusual quantity. Under sec- 
 tion 6 the sale or dispensing of large and unusual quanti- 
 ties of drugs unaccompanied by explanation as to necessity 
 therefor, is the sale and dispensing thereof for purpose of 
 evading the intent of the act, and unlawful. (United States 
 V. Curtis, 229 Fed., 288.) 
 
 Quantity of narcotic drugs that may be dispensed by 
 registered physicians, dentists, and veterinary surgeons. 
 (T. D. 2879; revoking T. D. 2200.) 
 
 Instructions as to refilling prescriptions, modifying article 
 11, Regulations 35. (T. D. 2766.) 
 
 Instructions as to sale of unclaimed freight or express 
 packages containing narcotic drugs. (T. D. 2712.) 
 
 Physician who sells, gives away, or distributes 500 one- 
 sixth grain tablets of heroin not in pursuance of written 
 order on a form issued on blank furnished by the Commis- 
 sioner of Internal Revenue, commits indictable offense. 
 Physician dispensing like quantity of hei-oin not in course 
 of professional practice, but to person popularly known as 
 "dope fiend" to gratify latter's appetite, commits indict- 
 able offense. (United States v. Doremus, 249 U. S. 86; 
 T. D. 2809.) 
 
 Under section 2 physician may dispense in course of pro- 
 fessional practice and without written order a narcotic 
 to a patient, though he does not personally attend the 
 patient, but he must keep the prescribed record. License 
 required is mere form of imposing a tax, and provisions 
 relating thereto are for purpose of revenue. (Tucker v. 
 Williamson, 228 Fed., 201.) 
 
 Where indictment charged that defendants were persons 
 required to register and that they unlawfully had certain 
 drugs in their possession, it is not necessary to negative 
 an innocent possession by alleging that defendants' pos- 
 session was for purpose of sale. (United States v. O'Hara, 
 242 Fed., 749; T. D. 2392.) 
 
 Mandamus directed to Commissioner of Internal Revenue 
 and Secretary of the Treasury' not proper remedy to abro- 
 gate regulation. (United States r. Osborn, T. D. 2489.) 
 
 Conspiracy to defeat intent and purpose of act. (United 
 States V. Wallace, T. D. 2276; United States v. O'Hara, 
 242 Fed., 749; T. D. 2392.) 
 
 Fact that physician " when in the course of his profes- 
 sional practice only " is excepted does not provide authority 
 for physician to sell narcotics. If he does ngt do so in good 
 faith; exception must be strictly construed. (Thompson 
 V. United States, 2.58 Fed., 196; T. D. 2887.) 
 
 Indictment charging that at time of offense defendant 
 knew that cocaine was a derivative of coca leaves, and 
 that morphine and heroin were salts and derivatives of 
 opium, suflSciently averred by implication that cocaine was 
 a derivative of such leaves, and that morphine and heroiu 
 were salts or deriviitives of opium. (Melanson v. United 
 States, 256 Fed., 783.) 
 
 Indictment under sections 1 and 2 need not negative ex- 
 ceptions In those sections. (United States v. Loewen- 
 thal, 257 Fed., 444. See Fyke r. United States, 254 Fed., 
 225.) 
 
 Section 2 Ls not invalid as revenue provision. (United 
 States r. Rosenberg, 251 Fed., 963; Hughes v. United 
 States, 2.53 Fed., 543; Fyke v. United States, 254 Fed., 225.) 
 
 Evi'dence that morphine, heroin, and cocaine are deriva- 
 tives 0j<al§mtl4S^ Mkird&Dit®is unnecessary. (Hughes v. 
 United States, 2.53 Fed., 543.) 
 
OPIUM. 427 
 
 Act applies to all sellere, not only to registered dealers. 
 (Fyke v. United States, 254 Fed., 225.) 
 
 Indictment charging that defendant sold narcotic Uru^ 
 in violation of the Harrison Narcotic Act held aufficient. 
 (Fyke !'. United States, 254 Fed., 225.) 
 
 Indictment charging that defendant did dispiu.se, etc., 
 a derivative of opium to persons niuued without written 
 order on prescribed form and not in cour.se of professional 
 practice as physician charged offense under section 2 of 
 act. (Foremen r. United States, 255 Fed., 021.) 
 
 Mere issuance of prescription by physician for narcotic 
 drug, to be filled by any druggist, without participation by 
 physician in sale is not a sale or such dispensing or dis- 
 tribution as amounts to a sale. (Foreman v. United 
 States, 255 Fed., 621.) 
 
 Novocaine can not be treated as a derivative of coca 
 leaves or as a liniment or ointment or other preparation 
 for external use containing cocaine. (Lowe v. Farbwerke- 
 Hoechst Co., 240 Fed., 671.) 
 
 The act of December 17, 1914, is a criminal statute and 
 must be strictly construed. United States i\ Wilson, 225 
 Fed., 82.) 
 
 Indictments held sufficient. (United States v. Woods, 
 224 Fed., 278; United States v. Carney, 228 Fed., 163; 
 United States v. Hoyt, 255 Fed., 927.) 
 
 Under section 2, druggist filling pie.scriptlon for nar- 
 cotics, issued to addict, Is not justified in tilling prescrip- 
 tion, regardless of fact that he knows or has reason to 
 know that it was not issued in good faith. (Friedman v. 
 United States, 260 Fed., 388.) 
 
 The Harrisoi\ Anti Narcotic Act is not invalid us attempt 
 by Federal Government to exei-cise police power, which was 
 not delegated, but was reserved to the states. ( Saunders v. 
 United States, 260 Fed., 386.) 
 
 The administrative provisions of section 1 aie valid. 
 (Stetson V. United States, 257 Fed., 689.) 
 
 "Preparations and remedies," contained in section 6 
 does not include clear morphine, but relates to actual 
 medicinal preparations and remedies not containing more 
 than a quarter of a grain of morphine, remedies such as a 
 physician or druggist would normally dispense. (Id.) 
 
 Section 8 applies to the business of seiliiii? narcotic 
 drugs as distinct from mere possession. ( Id. ) 
 
 In a prosecution for violation of section 8, dt>fendant not 
 being charged as a physician or a druggist, and the indict- 
 ment not negativing the exception of section 6, it was open 
 to him to show he was merely dispensing medicinal prepa- 
 rations and remedies containing not more than the amount 
 of morphine permitted by section 6. (Id.) 
 
 Sec. 1008. [Act of February £4, 1919 {40 Stat., 1067) .] ^J^^J^}^!' X" 
 That all opium, its salts, derivatiA'es, and compounds, of opium, etc! 
 and coca leaves, salts, derivatives, and compounds torMtures. ^ " ^ 
 thereof, which may now be under seizure or which may 
 hereafter be seized by the United States Government 
 from any person or persons charged with any violation 
 of the Act of October 1, 1890, as amended by the Acts 
 of March 3, 1897, February 9, 1909, and January 17, 1914, 
 or the Act of December 17, 1914, shall upon conviction of 
 the person or persons from whom seized be confiscated by 
 and forfeited to the United States; and the Secretary is 
 hereby authorized to deliver for medical or scientific 
 purposes to any department, bureau, or other agency of 
 the United States GoiJipftBeriti?jnjP>ftor(ja8!^- application 
 
428 OPIUM. 
 
 therefor under such regulation as may be prescribed by 
 the Commissioner, with the approval of the Secretary, 
 any of the drugs so seized, confiscated, and forfeited to 
 the T'nited States. 
 
 The provisions of this section sliall abo apply to any 
 of the aforesaid drugs seized or coming into the posses- 
 sion of the United States in the enforcement of any of 
 the above-mentioned Acts where the owner or owners 
 thereof are unknown. None of the aforesaid drugs com- 
 ing into possession of the United States under the oper- 
 ation of said Acts, or the provisions of this section, shall 
 be destroyed without certification by a committee ap- 
 pointed by the Commissioner, with the approval of the 
 Secretary, that they are of no value for medical or scien- 
 tific purposes. 
 
 Digitized by Microsoft® 
 
Chaptek Elev:^n. 
 
 OLEOMARGARINE; ADULTERATED BUTTER; PROCESS 
 OR RENOVATED BUTTER. 
 
 [Acts of August 2, 1886 (24 Stat., 209), and- October 1, 1890 (25 Stat., 
 by act of May 9, 1902 (32 Stat., 193).] 
 
 621), as amended 
 
 Sec. 
 
 1. Act Hay 9, 1902. Imitation dali-y 
 product.s subject to State laws. 
 Act August 2, 1886 : 
 
 1. Butter defined. 
 
 2. Oleomargarine defined. 
 
 3 (ainended). Special taxes. 
 
 4. Penalties for nonpayment of spec- 
 ial taxes. 
 . 5. Manufacturer's notices, books, re- 
 turns, bonds, signs, etc. 
 
 6 (amended). Oleomargarine, how to 
 be packed and sold ; penalty. 
 
 7. Manufacturer's labels, penalty for 
 failing to affix. 
 
 8 (amended). Tax, stamps, laws 
 relative to stamps for. tobacco 
 and snufE made to apply. 
 
 9. Assessment of tax on oleomargar- 
 ine when removed without 
 stamps. 
 
 10. Tax on imported oleomargarine ; 
 
 penalty. Warehousing. 
 
 11. Penalty for receiving for sale un- 
 
 stamped oleomargarine. 
 
 12. Penalty for purchasing from a 
 
 manufacturer who has not paid 
 special tax ; forfeiture. 
 
 13. Stamps on empty packages to be 
 
 destroyed '; penalty for failure ; 
 dealing in empty stamped pack- 
 ages. 
 
 14. Authority to employ chemists and 
 
 microscopists. 
 Commissioner to decide in con- 
 tested cases ; appeal. 
 
 15. Forfeiture of unstamped oleomar- 
 
 garine ; penalty for defacing or 
 removing stamps. 
 
 16. Oleomargarine removed for export. 
 
 Slec. 
 
 17. Carrying on business as manufac- 
 
 turer in fraud of the revenue; 
 penalties and forfeitures. 
 
 18. Penalty for omitting things re- 
 
 quired and for doing things for- 
 bidden. 
 
 19. Courts in which fines may be re- 
 
 covered. 
 
 20. Commissioner to make regulations. 
 
 21. Date when act goes into effect ; 
 
 stock on hand. 
 Act of May 9, 1902: 
 
 4. Butter defined. 
 Adulterated butte* defined. 
 Process or renovated butter de- 
 fined. 
 
 Notices, bonds. 
 
 Inventories, signs. 
 
 Manufacturers' packages. 
 
 Dealers' packages. 
 
 Caution label. 
 
 Tax on adulterated and process or 
 
 renovated butter. 
 Stamps — Sections relating to 
 
 stamps for tobacco and snufC 
 
 made applicable. 
 Sections of act of August 2, 1886, 
 
 made applicable to adulterated 
 
 butter. 
 
 5. Inspection of renovated butter. 
 Marking of process or renovated 
 
 butter. 
 Secretary of Agriculture to make 
 regulations. 
 
 6. Wholesale dealers in oleomarga- 
 
 rine, etc., to keep books and ren- 
 der returns. Penalty. 
 
 7. Date of taking effect. 
 
 (Act of August 2, 1886 (24 Stat, 209), as ameded by acts 
 of October 1, 1890 (26 Stat, 621), and May 9, 1902 (32 
 Stat., 193), an act to make oleomargarne and other imita- 
 tion dairy products subject to the laws of any State or Ter- 
 ritory, or the District of Columbia, into which they are 
 transported, and to Change the tax on oleomargarine, and to 
 impose a tax, provide for the inspection, and regulate the 
 manufacture and sale of certain dairy products, and to 
 amend an act entitled "An act defining butter, also impos- 
 ing a tax upon and regulating the manufacture, sale, im- 
 portation, and exportation of oleomargarine," approved 
 August 2, 1886.) 
 
 The act is on its face an act for levying taxes; its pri- 
 mary object must be assumed to be the raising of revenue. 
 (In re Kollock, 165 U. S., 526.) 
 
 Digitized by Microsoft® 
 
 429 
 
430 OLKOMAKGAEINE, ADULTERATED BUTTER, ETC. 
 
 One of the purposes of the law was to prevent the sale of 
 oleomargarine as and for butter. (Cliff v. United States, 
 195 U. S., 159; T. D. 839; 18 Op. Atty. Gen., 489.) 
 
 The oleomargarine act is not a complete act in itself. 
 (United States v. Barnes, 222 U. S., 513; T. D. 1751.) 
 
 „roduas'°rubjiS Sec. 1. [Act of May 9, 1902 {32 Stat., 193) .] That all 
 to state laws, ai'ticles kiiown as oleomargarine, butterine, imitation, 
 process, renovated, or adulterated butter, or imitation 
 cheese, or any substance in the semblance of butter or 
 cheese not the usual product of the dairy and not made 
 exclusively of pure and unadulterated milk or cream, 
 transported into any State or Territory ov the District of 
 Columbia, and remaining therein for use, consumption, 
 sale, or storage therein shall, upon the arrival within 
 the limits of such State or Territory or the District of 
 Columbia, be subject to the operation and effect of the 
 laws of such State or Territory or the District of Colum- 
 bia, enacted in the exercise of its police powers to the 
 same extent and in the same manner as though such arti- 
 cles or substances had been produced in such State or 
 Territory or the District of Columbia, and shall not be 
 exempt therefrom by reason of being introduced therein 
 in original packages or otherwise, 
 tion^o*"' ^^^'^' Sec. 1. [Act of Augmt 2, 1886 (U Stat., 209).] That 
 for the purpose of this act the word "butter" shall be 
 understood to mean the food product usually known as 
 butter, and which is made exclusively from milk or cream, 
 or both, with or without common salt, and with or with- 
 out additional coloring matter. 
 
 See section 4, act May 9, 1902, defining " butter," also 
 " adulterated butter." and " process or renovated butter," 
 page 174. 
 
 deflnei""^"''" Sec. 2. [Act of Augmt 2, 1886 (24 Stot.,' 209) .] That 
 for the purposes of this act certain manufactured sub- 
 stances, certain extracts, and certain mixtures and com- 
 pounds, including such mixtures and compounds with 
 butter, shall be knovsTi and designated as " oleomarga- 
 rine," namely : All substances heretofore known as oleo- 
 margarine, oleo, oleomargarine-oil, butterine, lardine, 
 suine, and neutral ; all mixtures and compounds of oleo- 
 margarine, oleo, oleomargarine-oil, btttterine, lardine, 
 suine, and neutral ; all lard extracts and tallow extracts ; 
 and all mixtures and compounds of tallow, beef-fat, suet, 
 lard, lard-oil, vegetable oil, annotto, and other coloring 
 matter, intestinal fat, and offal fat made in imitation or 
 semblance of butter, or when so made, calculated or 
 intended to be sold as butter or for butter. 
 
 Interpretation of deflnitiou. (18 Op. Atty. Gen., 489; 32 
 Int. Rev. Rec, 333.) 
 
 Addition of foreign fat, lard, or oil to butter produces 
 oleomargarine. (33 Int. Rev. Rec, 397 ; Regulations No. 9, 
 pp. 24, 88.) 
 
 Taxabilitv of mixtures or compounds of animal or vege- 
 table oils or fats. (T. D. 1354.) 
 
 Digitized by Microsoft® 
 
OLEOMARGARINE, ADULTERATED BUTTER, ETC. 431 
 
 Sbc. 4:. [Act of Augmi8,1886 (2/f iSt.ai.,£09).\ That .p?"H'>' 'V 
 
 <- ,' •'. ' ,i^,- '' ,■ violation by 
 
 every person who carries on the business oi a luanu- manufacturer. 
 facturer of oleomargarine without having paid the special 
 tax therefor, as rec[uired by law, shall, besides being 
 liable to the payment of the tax, be fined not less than 
 one thousand and not more than five thousand dollars; 
 and every person who_carries on the business of a whole- 
 sale dealer in oleomargarine without having paid the 
 special tax therefor, as required by law, shall, besides be- 
 ing liable to the payment of the tax, be fined not less 
 than five hundred nor more than two thousand dollars; 
 and every person who carries on the business of a r-etail 
 dealer in oleomargarine without having paid the special 
 tax therefor, as required by law, shall, besides being liable 
 to the payment of the tax, be fined not less than fifty nor 
 more than five hundred dollars for each and every of- 
 fense. 
 
 Penalty for failure to pay special tax. (United State-s 
 V. Joyce, 138 Fed., 455; Morris r. United States, 161 Fed., 
 672; Hartnian et al. v. United States, 168 Fed., 30, T. D. 
 1468 ; Vermont r. United States, 174 Fed., 792, T. D. 1579 ; 
 United States r. Shipley, T. D. 1504; Enders r.' United 
 States, 187 Fed., 754, T. D. 1669.) 
 
 Borrowing oleomargarine and returning amount borrowed 
 is a barter not a sale. (Ewers v. Weaver, IS?. Fed., 713; 
 Weaver v. Ewers, 195 Fed., 247.) 
 
 S^iC. 5. [Act of AltgitStS, 1886 {H Stat, 210).] That Manufacturers- 
 
 every manufacturer of oleomargarine shall file with "orfes ' s i'g^?"i 
 the collector of internal revenue of the district in which ^°°^^- •> o n d .s, 
 his manufactory is located such notices, inventories, and 
 bonds, shall keep such books and render such returns of 
 material and products, shall put up such signs and affix 
 such number to his factory, and conduct his business 
 under such surveillance of officers and agents as the 
 Commissioner of Internal Kevenue, with the approval of 
 the Secretary of the Treasury, may, bj' regulation, re- 
 quire. , But the bond required of such manufacturer 
 shall be with sureties satisfactory to the collector of in- 
 ternal revenue, and in a penal sum of not less than five 
 thousand dollars; and the sum of said bond may be 
 increased from time to time and additional sureties re- 
 quired at the discretion of the collector, or under in.?truc- 
 tions of the Commissioner of Internal Revenue. 
 
 Regulations No. 9, T. D. 797, June 6, 1904 ; T. D. 906, June 
 20, 1905 ; and T. D. 1652, August 29, 1910. 
 
 Power of attorney bv mnnufacturers to agents to render 
 returns. (T. D. 1263.) 
 
 Sec. 6. [Act of August 3, 1886 {^4- Stat., 210, as Manufacturers- 
 (amended by act of October 1,1918; 40 Stat., 1008.).] That 2^1""" ^ ^ " ''■ 
 all oleomargarine shall be packed by the manufacturer 
 thereof in firkins, tubs, or other wooden or paper packages 
 not before used for that purpose, each containing not less 
 than ten pounds, and marked, stamped, and branded as 
 
 Digitized by Microsoft® 
 
432 
 
 OLEOMARGARINE, ADULTERATED BUTTER, ETC. 
 
 the Commissioner of Internal Eevenue, with the approval 
 
 of the Secretary of the Treasury, shall prescribe; and 
 
 aU sales made by manufacturers of oleomargarine, and 
 
 .wholesale dealers in olemargarine shall be in original 
 
 Betaii dealers' g^-^jj^pg^j packages. Eetail dealers in oleomargarine must 
 
 packages. 
 
 Penalties. 
 
 sell only from original stamped packages, in quantities 
 not exceeding ten pounds, and shall pack- the oleomarga- 
 rine sold by them in suitable wooden or paper packages 
 which shall be marked and branded as the Commissioner 
 of Internal Revenue, with th& approval of the Secretary 
 of the Treasury, shall prescribe. Every person who 
 knowingly sells or offers for sale, or delivers or offers to 
 deliver, any oleomargarine in any other form than in new 
 wooden or paper packages as above described, or who 
 packs in any paskage any oleomargarine in any manner 
 contrary to law, or who falsely brands any package or 
 affixes a stamp on any package denoting a less amount of 
 tax than that required by law shall be fined for each 
 offense not more than one thousand dollars, and be im- 
 prisoned not more than two years. 
 
 Original packages, no objection to using old boxes for ma- 
 terial for new packages. (32 Int. Rev. Rec., 405.) 
 
 Waxed cartons or containers for packing oleomargarine 
 Inside original packages permissible^ (T. D. 1323 and 
 T. D. 1563.) 
 
 Crates made of wooden slats for holding waxed or 
 enameled cardboard cartons within definition of " wooden 
 packages" as original packages for oleomargarine. (T. D. 
 1613.) 
 > Power of Commissioner to make regulations as to marks 
 
 and brands on packages of oleomargarine. (In re KoUock, 
 165 U. S., 526, 43 Int. Rev. Rec, 170; In re McOaully, 165 
 U. S., 538. Prather v. United States, 9 App. Cases, D. C, 
 82; Wilkins r. United States, 96 Fed., 837; T. D. 21623.) 
 
 Retail packages, marks and brands. (United States v. 
 Ford, 50 Fed., 467, distinguishing United States v. Eaton, 
 144 U. S., 677; Dougherty v. United States, 108 Fed., 56 
 (T. D. 335), affirming 101 Fed., 439; United States v. Joyce, 
 138 Fed., 457 ; United States v. Knott, 151 Fed., 925 ; Mor- 
 ris V. United States, 161 Fed., 680.) 
 
 Limit of 10 pounds retail sales. (United States v. Ripper, 
 178 Fed., 24 ; Ripper r. United States, 179 Fed., 497 ; T. D. 
 1609; GoU r. United States, 166 Fed., 419.) 
 
 A party is liable for the sale by a clerk or employee of 
 oleomargarine without its being in a stamped or wrapped 
 package. (Prather v. United States, 9 App. Cases, D. C, 
 82.) 
 
 Indictment under Sec. 6. (United States v. Lockwood, 
 164 Fed., 772; GoU v. United States, 166 Fed., 419.) 
 
 It is permissible to join several offenses In one indict- 
 ment setting forth the different acts in separate counts if 
 of the same class. (Morris v. United States, 161 Fed., 672. 
 See p. 642.) 
 
 The indictment need not set out the regulations. 
 (Wilkins V. United States, 96 Fed., 837; T. D. 21623.) 
 
 Regulations to carry out provision to permit use of paper 
 containers as original packages for oleomargarine. — Supple- 
 ment 4, regulations No. 9, revised July, 1907. (T. Ds. 2764, 
 2774.) 
 
 Digitized by Microsoft® 
 
OLEOMARGARINE, ADULTERATED BUTTER, ETC. 433 
 
 Sec. 7. [Act of August 2, 1886 {H Sm, mO).] That ^,^^Z,^^^] 
 every manuiacturer oi oleomargarine shall securely affix, 
 by pasting, on each package containing oleomargarine 
 manufactured by him, a label on which shall be printed, 
 besides the number of the manufactory and the district 
 and State in which it is situated, these words : " Notice — 
 The manufacturer of the oleomargarine herein contained 
 has complied with all the requirements of law. Every 
 jserson is cautioned not to use either this package again 
 or the stamp thereon again, nor to remove the contents of 
 this package without destroying said stamp, under the 
 penalty provided by law in such cases." Every manu- 
 facturer of oleomargarine who neglects to affix such label 
 to any package containing oleomargarine made by him, 
 or sold or offered for sale by or for him, and every person 
 who removes any such label so affixed from any such 
 package, shall be fined fiftj' dollars for each package in 
 respect to which such offense is committed. 
 
 Printing notice directly on paper or fiber containers per- 
 mitted. (T. D. 2968.) 
 
 Sec. 8. {Act of August 2, 1886 {U Stat., 210), as 
 amended by sec. 3, act of May 9, 1902 {32 Stat., 193).] 
 That upon oleomargarine which shall be manufactured 
 and sold, or removed for consumption or use, there shall 
 be assessed and collected a tax of ten cents per pound, to ^ax per pound. 
 be paid by the manufacturer thereof ; and any fractional 
 part of a pound in a package shall be taxed as a pound : 
 Provided, When oleomargarine is free from artificial 
 coloration that causes it to look like butter of any shade 
 of yellow said tax shall be one-fourth of one cent per Tax represent- 
 pound. The tax levied by this section shall be represented stamps'^ coupon 
 by coupon stamps; and the provisions of existing laws 
 governing thie engraving, issue, sale, accountability, 
 effacement, and destruction of stamps relating to tobacco 
 and snuff, as far as applicable, are hereby made to apply 
 to stamps provided for by this section. 
 
 Use of an ingredient in minute quantities to impart 
 yellow color subjects product to tax at rate of 10 cents per 
 pound. (T. D. 564.) 
 
 Use of an ingredient containing artificial coloring which 
 Imparts shade of yellow makes finished product taxable at 
 10 cents. (Regulations No. 9.) 
 
 Butter artificially colored as an ingredient in oleomar- 
 garine subjects product to higher rate of tax. (McCray v. 
 United States, 195 U. S., 27; T. D. 795.) 
 
 Palm oil constitutes artificial coloration. (Clifl: v. United 
 States, 195 U. S., 159; T. D. 839.) 
 
 Palm oil. (Moxley v. Hertz, 216 U. S., 344, T. D. 1596; 
 affirming 173 Fed., 728, T. D. 1168; 185 Fed., 757, T. D. 
 1671.) 
 
 Coloring for customer after sale. (W. H. Zinn Co. -c. 
 United States, T. D. 1517.) 
 
 Use of a rubber stamp for cancellation of tax-paid stamps 
 for oleomargarine, in lieu of a stencil plate of brass or 
 copper. (T. D. 614.) 
 
 See chapter under heading " Tobacco and Snuff " for laws 
 relating to stamps. 
 
 140184°— 20 'i^Digitized by Microsoft® 
 
434 OLEOMARGAEINB, ADULTEBATED BUTTER, ETC. 
 
 Application for receiver. (United States v. Capital City- 
 Dairy Co.,T. D. 2209.) 
 
 Colored oleomargarine taken from cave under place of 
 business into salesroom in same building is removed, so 
 as to be taxable. (Marhoefer v. United States, 241 Fed., 48.) 
 
 Assessment of Sec. 9. \Aot of Auoust 2, 1886 (U Stat, 211).] That 
 
 tax within two , •- '' r , <■ i • ii 
 
 years. whenever any manutacturer or oleomargarine sells, or re- 
 
 moves for sale or consumption, any oleomargarine upon 
 which the tax is required to be paid by stamps, without 
 the use of the proper stamps, it shall be the duty of the 
 Commissioner of Internal Revenue, within a period of 
 not more than two years after such sale or removal, upon 
 satisfactory proof, to estimate the amount of tax which 
 has been omitted to be paid, and to make an assessment 
 therefor and certify the same to the collector. The tax 
 so assessed shall be in addition to the penalties imposed 
 by law for such sale or removal. 
 
 See Regulations No. 1, concerning assessments. 
 
 Tax on im- Sec. 10. iAct of August 2, 1886 {2^ Stat., 211) .] That 
 
 garine. °^^°™^''" all oleomargarine imported from foreign countries shall, 
 
 in addition to any import duty imposed on the same, pay 
 
 an internal revenue tax of fifteen cents per pound, such 
 
 stamps. tax to be represented by coupon stamps as in the case of 
 
 oleomargarine manufactured in the United States. The 
 stamps shall be affixed and canceled by the owner or 
 importer of the oleomargarine while it is in the custody 
 of the proper custom-house officers; and the oleomar- 
 garine shall not .pass out of the custody of said officers 
 until the stamps have been so affixed and canceled, but 
 shall be put up in wooden packages, each containing not 
 less than ten pounds, as prescribed in this act for oleomar- ' 
 garine manufactured in the United States, before the 
 stamps are affixed; and the owner or importer of such 
 oleomargarine shall be liable to all the penal provisions 
 of this act prescribed for manufacturers of oleomargarine 
 
 Warehousing manufactured in the United States. Wlienever it is 
 iwgadne. °'^° necessary to take any oleomargarine so imported to any 
 place other than the public stores of the United States for _ 
 the purpose of affixing and canceling such stamps, the 
 collector of customs of the port where such oleomargarine \ 
 is entered shall designate a bonded warehouse to which it 
 shall be taken, under the control of such customs officer] 
 as such collector may direct ; and every officer of customs ; 
 who permits any such oleomargarine to pass out of his 
 custody or control without compliance by the owner or 
 importer thereof with the provisions of this section relat- 
 
 Penalty f o r ing thcrcto, shall bc guilty of a misdemeanor, and shall be 
 customs' "officer.'' fined not Icss than one thousand dollars nor more than 
 five thousand dollars, and imprisoned not less than six 
 months nor more than three years. Every person who 
 sells or offers for sale any imported oleomargarine, or 
 oleomargarine purporting or claimed to have been im- 
 ported, not put up in packages and stamped as provided 
 ^ Digitized by Microsoft® ^ ^ 
 
OLKOMAKGAEl]SrE, ADULTBEATED BUTTER, ETC. 435 
 
 by this aet, shall be fined not less than five hundred dol- seiun^'^Ij '^t 
 lars nor more than five thousand dollars, and be im- properly 
 prisoned not less than six naonths nor more than two ^*^™'"^'^ 
 years. 
 
 Oleomargarine exported free of tax and reimported du- 
 tiable at domestic rates remitted. (T. D. 669:) 
 
 Sec. 11. [Act of August 2, 18S6 {^4. Stat., 211 ) .] That pur'cS' ''oieo- 
 every person who knowingly purchases or receives for p *r^"p"e r f °y 
 sale any oleomargarine which has not been branded or stamped. ' 
 stamped according to law shall be liable to a penalty of 
 fifty dollars for each such offense. 
 
 Sec. 12. [Aet of August 2, 1886 {U Stat., mi.)] That y^rc^Sg IZ 
 every person who knowingly purchases or receives for manufacturers 
 
 ■••'■^T .(."•'^ J. , ,,not having paid 
 
 sale any oleomargarine from any manufacturer who has special tax. 
 not paid the special tax shall be liable for each offense to 
 a penalty of one hundred dollars, and to a forfeiture of 
 all articles so purchased or received, or of the full value 
 thereof. 
 
 Sec. 13. [Act of August 2, 1886 {U Stat., 211). } That empt'y" "ackag°es 
 whenever any stamped package containing oleomarga- '° *"= destroyed. 
 rine is emptied, it shall be the duty of the person in whose 
 hands the same is to destroy utterly the stamps thereon ; 
 and any person who willfully neglects or refuses so to do 
 shall for each such offense be fined not exceeding fifty ""^^y- 
 dollars, and imprisoned not less than ten days nor more 
 than six months. 
 
 And any person who fraudulently gives away or ac- 
 cepts from another, or who sells, buys, or uses for pack- 
 ing oleomargarine, any such stamped package, shall for 
 each such offense be fined not exceeding one hundred dol- 
 lars, and be imprisoned not more than one year. 
 
 Any revenue ofiicer may destroy any emptied oleomar- 
 garine package upon which the tax-paid stamp is found. 
 
 Failure to destroy stamp on empty package. (Morris v. 
 United States, 161 Fed., 672 ; Vermont v. United States, 174 
 Fed., 792; T. I>. 1579; United States v. White & Paller, 
 T. D. 1334; United States v. Ripper, 178 Fed., 24; Hipper 
 V. United States, 179 Fed., 497; T. D. 1609.) 
 
 It is doubtful if the word " fraudulently " was intended 
 to qualify any other act than that of giving away or accept- 
 ing from another any such package. (Morris v. United 
 States, 161 Fed., 672.) 
 
 Sec. 14. [Act_ of August 2, 1886 (f 4 Stat., 212) .] That nii^JS^opfsts.^™^ 
 there shall be in the office of the Commissioner of In- 
 ternal Revenue an analytical chemist and a microscopist, 
 who shall each be appointed by the Secretary of the 
 Treasury, and shall each receive a salary of two thou- 
 sand five hundred dollars per annum; and the Com- 
 missioner of Internal Revenue may, whenever in his 
 judgment the necessities of the service so require, em- 
 ploy chemists and microscopists, to be paid such com- 
 pensation as he may deem proper, not exceeding in the 
 aggregate any appropriation made for that purpose. 
 
 Digitized by Microsoft® 
 
Penalty for 
 rtniovin] 
 
 436 OLEOMAKGAKINE, ADULTERATED BUTTEB, ETC. 
 
 to*^drcide^^'Mn- ^^^ ^^^^ ComiTiissioner is authorized to decide what 
 
 tested eases. substances, extracts, mixtures, or compounds which may 
 
 be submitted for his inspection in contested cases are to 
 
 be taxed under this act; and his decision in matters of 
 
 taxation under this act shall be final. 
 
 The Commissioner may also decide whether any sub- 
 stance made in imitation or semblance of butter, and 
 intended for human consumption, contains ingredients 
 Appeal. deleterious to the public health; but in case of doubt or 
 
 contest his decision in this class of cases may be appealed 
 from to a board hereby constituted for the purpose, and 
 composed of the Surgeon-General of the Army, the Sur- 
 geon-General of the Navy, and the Commissioner (now 
 Secretary) of Agriculture; and the decisions of this 
 board shall be final in the premises. 
 « n7t'a mV e°d Sec. 15. [Act of Auffust £, 1886 {U Stat., 212) .] That 
 defe'terfous oieo^ ^^^ packages of oleomargarine subject to tax under this 
 margarine. act that shall be found without stamps or marks as 
 
 herein provided, and all oleomargarine intended for 
 human consumption which contains ingredients adjudged, 
 as hereinbefore provided, to be deleterious to the public 
 health, shall be forfeited to the United States. Any per- 
 l^stamps! son who shall willfully remove or deface the stamps, 
 marks, or brands on a package containing oleomargarine 
 taxed as provided herein shall be guilty of a misde- 
 meanor, and shall be punished by a fine of not less than 
 one hundred dollars nor more than two thousand dollars, 
 and by imprisonment for not less than thirty days nor 
 more than six months. 
 
 Wilkins r. United States, 96 Fed., 837; T. D. 21623. 
 
 Indictment ; defendants are entitled to be informed of 
 the charge against them with more definiteness than is to 
 be found by following the words of the statute. (United 
 States V. Joyce, 138 Fed. 457.) v 
 
 ^oi^^^/sr-'rire Sec. 16. [Act of Auffust £, 1886 {24. Stat. 21£) .] That 
 oleomargarine may be removed from the place of manu- 
 facture for export to a foreign country without pay- 
 ment of tax or affixing stamps thereto, under such regu- 
 lations and the filing of such bonds and other security 
 as the Commissioner of Internal Revenue, with the ap- 
 proval of the Secretary of the Treasury, may prescribe. 
 Every person who shall export oleomargarine shall 
 brand upon every tub, firkin, or other package contain- 
 ing such article the word " Oleomargarine," in plain 
 Eoman letters not less than one-half mch square. 
 
 Sales to vessels In ports of this country not exportation. 
 (T. D. 657; Swan & Finch Co. v. United States, 190 U. S.^ 
 143.) 
 
 See Regulations No. 29, concerning exportatlons. 
 Oleomargarine reimported subject to duty equal to the 
 internal-revenue tax, although returned to the factory for 
 remanufacture. (T. D. 857.) 
 
 Withdrawals of oleomargarine free of tax for export 
 where the tax remitted amounts to $100 or over can not 
 be afterwards separated into small consignments for the 
 purpQigittBdjtWiMeit08&lt®r as shipments on which the 
 tax is less than .poo. (T. D. 1662.) 
 
OLEOMAEGAKINE, ADULTERATED BUTTER, ETC. 437 
 
 Sec. 17. [Act of Aitgust S, 1886 (24 Stat., 212).} That Forfeiture and 
 
 1 '- ' ^ ',. ^ ^ . ',,',-■. penalty m case 
 
 whenever any person engaged in carrying on the business of fraud by 
 of manufacturing oleomargarine defrauds, or attempts to '"''""'^^t"■"• 
 defraud, the United States of the tax on the oleomar- 
 garine produced by him, or any part thereof, he shall for- 
 feit the factory and manufacturing apparatus used by 
 him, and all oleomargarine and all raw material for the 
 production of oleomargarine found in the factory and on 
 the factory premises, and shall be fined not less than five 
 hundred dollars nor more than five thousand dollars, 
 and be imprisoned not less than six months nor more than 
 three years. 
 
 Indictment held not objectionable for failvire to affirma- 
 tively allege that tax was assessable. (Enders r. United 
 States, 187 Fed., 754; T. D. 1669.) 
 
 Indictment based on section sustained ; employee can be 
 convicted under this section. (Marhoefer v. United States, 
 241 Fed., 48.) 
 
 Indictment here based on this section held suflBcient ; not 
 necessary to prove sales. (May v. United States, 199 Fed., 
 42, 53 ; T. Ds. 1797, 1798.) 
 
 Indictment charging in language of statute sufficient with- 
 out setting out particular acts. (Hardesty v. United States, 
 168 Fed., 25.) 
 
 Offense may be committed by a corporation ; indictment 
 here held not sufficient. (United States v.Orr. 223 Fed., 
 222.) 
 
 Indictment considered and held to charge conspiracy to 
 defraud United States, rather than conspiracy to commit 
 ofCense described in this section. (United States r. Orr, 223 
 Fed., 220.) 
 
 Criminal prosecution of stockholder and director of cor- 
 poration for defrauding United States of tax resulting in 
 acquittal is not a bar to subsequent proceeding for forfeiture 
 of the oleomargarine and apparatus and raw materials 
 owned by the corporation based upon the same alleged 
 OfCense. (United States v. Manufacturing Apparatus. Oleo- 
 margarine, and Raw Materials of Western Oleomargarine 
 Co., 240 Fed., 235.) 
 
 1 Forfeiture and penalty for defrauding or attempting to 
 defraud. (Hardesty v. United States, 168 Fed., 25.) 
 
 Information for forfeiture of oleomargarine plant. The 
 language of this section is similar to that in regard to dis- 
 tilled spirits (sec. 3257), and decision under latter section 
 applicable. (United States v. Manufacturing Apparatus, 
 etc., of New Jersey Melting & Churning Co., 141 Fed., 475.) 
 
 Q-sio.1%. \_Act of August 2, 1886 {2J!^ Stat., 212).] That .Forfeiture for 
 if any manufacturer of oleomargarine, any dealer therein, p^v^with "law.""" 
 or any importer or exporter thereof shall knowingly or 
 willfully omit, neglect, or refuse to do, or cause to be 
 done, any of the things required by law in the carrying 
 on or conducting of his business, or shall do anything 
 by this act prohibited, if there be no specific penalty or 
 punishment imposed by any other section of this act for 
 the neglecting, omitting, or refusing to do, or for the 
 doing or causing to be done, the thing required or pro- 
 hibited, he shall pay a penailty of one thousand dollars; 
 and if the person so offending be the manufacturer of or 
 a wholesale dealer in oleomargarine, all the oleomarga- 
 Digitizedoy Microsoft® 
 
438 OLEOMARGARIIvrE, ADULTEEATED BUTTEE, ETC. 
 
 rine owned by him, or in which he has any interest as 
 owner, shall be forfeited to the United States. 
 
 Sales in quantities exceeding 10 pounds at on& time by 
 retail dealers, penalty provided in section 18 applies. 
 (United States v. Ripper, 178 Fed., 24; Ripper v. United 
 States, 179 Fed., 497, T. D. 1609.) 
 
 ^^ Recovery oi Qec. 19. [Act of August ^, 1886 {U Stat., 213) .] Jhut 
 all fines, penalties, and forfeitures imposed by this act 
 may be recovered in any court of competent jurisdiction. 
 Regulations. gj,p_ 20. [Act of August ^, 1886 {U Stat., 312) .] That 
 the Commissioner of Internal Eevenue, with the ap- 
 proval of the Secretary of the Treasury, may make all 
 ■ needful regulations for the carrying into effect of this 
 act. 
 
 See citations under section 6, power of Commissioner to 
 make regulations, page 432. i 
 
 oct^'si'^isM""* ^^'^'- 21- l^^ci of August 2, 1886 {U Stat., 213) .] That 
 this act shall go into effect on the ninetieth day after its 
 passage ; and all wooden packages containing ten or more 
 pounds of oleomargarine found on the premises of any 
 dealer on or after the ninetieth .day succeeding the date 
 of the passage of this act shall be deemed to be taxable 
 under section eight of this act, and shall be taxed, and 
 shall have affixed thereto the stamps, marks, and brands 
 required by this act or by regulations made pursuant to 
 this act ; and for the purpose of securing the affixing of 
 the stamps, marks, and brands required by this act, the 
 oleomargarine shall be regarded as having been manu- 
 factured and sold, or removed from the manufactory for 
 consumption or use, on or after the day this act takes 
 stock on hand, gffggt . ^nd such stock On hand at the time of the taking 
 effect of this act may be stamped, marked, and branded 
 under special regulations of the Commissioner of In- 
 ternal Eevenue, approved by the Secretary of the Treas- 
 ury; and the Commissioner of Internal Eevenue may 
 authorize the holder of such packages to mark and brand 
 the same and to affix thereto the proper tax-paid stamps. 
 See section 7, act May 9, 1902, page 443. 
 
 Butter defined. gj,^,_ 4^ |-^^^ ^yr Jf^^y g^ ^ggp^ (J^ ^^^_^ ^g)^)_J That 
 
 for the purpose of this Act " butter " is hereby defined to 
 mean an article of food as defined in " An Act defining 
 butter, also imposing a tax upon and regulating the 
 manufacture, sale, importation, and exportation of oleo- 
 margarine," approved August second, eighteen hundred 
 butte?"dcflmd*.^'^ and eighty-six ; that " adulterated butter " is hereby de- 
 fined to mean a grade of butter produced by mixing, 
 reworking, rechurning in milk or cream, refining, or in 
 any way producing a uniform, purified, or improved 
 product from different lots or parcels of melted or un- 
 raelted butter or butter fat, in which any acid, alkali, 
 chemical, or any substance whatever is introduced or 
 used for tjie nurppge or. with the effect of deodorizing or 
 
 removing fen«rOTrom-*r»ncIaity, any butter or butter fat 
 
OLEOMAEGABINE, ADULTERATED BUTTER, ETC. 439 
 
 with which there is mixed any substance foreign to but- 
 ter as herein defined, with intent or effect of cheapening 
 in cost the product or any butter in the manufacture or 
 manipulation of which any process or material is used 
 with intent or effect of causing the absorption of ab- 
 normal quantities of water, milk, or cream; that " process ovated°b^u°tt e"r 
 butter " or " renovated butter " is hereby defined to mean defined. 
 butter which has been subjected to any process by which 
 it is melted, clarified or refined and made to resemble 
 genuine butter, always excepting " adulterated butter " as 
 defined by this Act. * * * 
 
 The provisions of this section imposing special taxes on 
 manufacturers of renovated and adulterated butter and on 
 dealers in adulterated butter will be found on page 174, 
 under head of Special Taxes; also the provision imposing 
 fines for nonpayment of special tax, page 160. 
 
 Manufacturer of adulterated butter defined. The law 
 imposing tax on adulterated butter Is a revenue measure. 
 (Ohio Creamery & Supply Co. v. Eodway, T. D. 1871.) 
 
 That every manufacturer of process or renovated butter notk?e™'^''b"nds! 
 or adulterated butter shall file with the collector of inter- inventories, etc' 
 nal revenue of the district in which his manufactory is 
 located such notices, inventories, and bonds, shall keep 
 such books and render such returns of material and prod- 
 ucts, shall put up such signs and affix such number of his signs. 
 factory, and conduct his business under such surveillance 
 of officers and agents as the Commissioner of Internal 
 Revenue, with the approval of the Secretary of the Treas- 
 ury, may by regulation require. But the bond required 
 of such manufacturer shall be with sureties satisfactory'^ 
 to the collector of internal revenue, and in a penal sum 
 of not less than five hundred dollars; and the sum of 
 said bond may be increased from time to time and addi- 
 tional sureties required at the , discretion of the collector 
 or under instructions of the Commissioner of Internal 
 Revenue. 
 
 That all adulterated butter shall be packed by the p^^™*'"'*"''"''' 
 manufacturer thereof in firkins, tubs, or other wooden 
 packages not before used for that purpose, each contain- 
 ing not less than ten pounds, and marked, stamped, and 
 branded as the Commissioner of Internal Revenue, with 
 the approval of the Secretary of the Treasury, shall pre- 
 scribe; and all sales made by manufacturers of adulter- 
 ated butter shall be in original stamped packages. 
 
 Dealers in adulterated butter must sell only original or °'"'^''''^' ^'"'^' 
 from original stamped packages, and when such original 
 stamped packages are broken the adulterated butter sold 
 from same shall be placed in suitable wooden or paper 
 packages, which shall be marked and branded as the Com- 
 missioner of Internal Revenue, with the approval of the 
 Secretary of the Treasur}', shall prescribe. Every person 
 who knowingly sells or offers for sale, or delivers or offers 
 to deliver, any adulterated butter in any other form than 
 in new wooden or paper packages as above described, or 
 iDigitized by Microsoft® 
 
440 OLEOMARGAKINB, ADULTERATED BXJTTEK, ETC. 
 
 who packs in any package any adulterated butter in any 
 manner contrary to law, or who falsely brands any pack- 
 age or affixes a stamp on any package denoting a less 
 
 Penalty. amount of tax than that required by law, shall be fined 
 
 for each offense not more than one thousand dollars and 
 be imprisoned not more than two years. 
 
 Caution label. That every manufacturer of adulterated butter shall 
 securely affix, by pasting, on each package containing 
 adulterated butter manufactured by him a label on which 
 shall be printed, besides the number of the manufactory 
 and the district and State in which it is situated, these 
 words : " Notice. — That the manufacturer of the adulter- 
 ated butter herein contained has complied with all the 
 requirements of law. Every person is cautioned not to 
 use either this package again or the stamp thereon, nor to 
 remoYe the contents of this package without destroying 
 said stamp, under the penalty provided by law in such 
 cases." Every manufacturer of adulterated butter who 
 neglects to affix such label to any package containing 
 adulterated butter made by him, or sold or offered for sale 
 
 Penalty. ^^^ ^^ ^T him, and every person who removes any such 
 
 label so affixed from any such package shall be fined fifty 
 dollars for each package in respect to which such offense 
 is committed. 
 
 Tax on adui- That upon adulterated butter, when manufactured or 
 In'd'^proceS'"^ sold or removcd for consumption or use, there shall be 
 renovated butter, asscssed and collected a tax of ten cents per pound, to be 
 paid by the manufacturer thereof, and any fractional 
 part of a pound shall be taxed as a pound, and that upon 
 process or renovated butter, when manufactured or sold 
 or removed for consumption or use, there shall be as- 
 sessed and collected a tax of one-fourth of one cent per 
 pound to be paid by the manufacturer thereof, and any 
 fractional part of a pound shall be taxed as a pound. 
 The tax to be levied by this section shall be represented 
 
 stamps. ]r,y coupon stamps, and the provisions of existing laws 
 
 governing engraving, issuing, sale, accountability, efface- 
 ment, and destruction of stamps relating to tobacco and 
 snuff, as far as applicable, are hereby made to apply to 
 the stamps provided by this section. 
 
 That the provisions of sections nine, ten, eleven, twelve, 
 thirteen, fourteen, fifteen, sixteen, seventeen, eighteen, 
 nineteen, twenty, and twenty-one of "An Act defining 
 butter, also imposing a tax upon and regulating the 
 manufacture,, sale, importation, and exportation of oleo- 
 margarine," approved August second, eighteen hundred 
 and eighty-six. shall apply to manufacturers of " adul- 
 terated butter " to an extent necessary to enforce the 
 marking, branding, identification, and regulation of the 
 exportation and importation of adulterated butter. 
 
 Butter containing 16 per cent or more of moisture is lield 
 to be adulterated. (Regulations No. 9, concerning adul- 
 terat^y^^ll^^^ ^^^g^^^enovated butter.) 
 
OLEOMARGARINE, ADULTERATED BUTTER, ETC. 441 
 
 Definition of adulterated butter. (Rosemary Creamery 
 Company v. Cole, T. D. 2347.) 
 
 Explanation of regulations concerning adulterated but- 
 ter. (T. D. 1009.) 
 
 A regulation defining what shall be held to be an ab- 
 normal quantity of moisture has tfie force and effect of 
 law. (Ohio Creamery & Supply Co. v. Kodway, T. D. 
 1871.) 
 
 Authority of Commissioner to fix moisture limit — intent 
 to manufacture not material If process has that effect. 
 (Coopersville Cooperative Creamery Co. v. Lemon, 163 
 Fed., 145, T. Ds. 1871, 1679 ; Ohio Creamery & Supply Co. 
 V. Rodway, T. D. 1871. Contra: — Baldwin v. Williams, 
 233 Fed., 607; United States v. 11,150 Pounds of Butter 
 (Milton Dairy Co.), 188 Fed., 157, 195 Fed., 657. The de- 
 cision in the case of the Milton Dairy Co. is not accepted 
 by this office as a precedent. Revenue agents will report 
 all cases where adulterated butter is found to have a 
 moisture content of 16 per cent or more. T. D. 1809.) 
 
 Refined butter, manufactured from salt, glucose, and Im- 
 ported low-grade or " grease " butter, is held sub.iect to 
 tax as adulterated butter. (T. D. 557.) 
 
 Ladled butter containing 16 per cent of moisture liable 
 to stamp tax at 10 cents per pound. (T. D. 783.) 
 
 Evidence showing reasonable diligence to keep moisture 
 content within requirements of law not sufficient to re- 
 lieve from liability. Use of Gray's tester. (West Point 
 Butter and Creamery Co. v. Hammond, T. D. 1667.) 
 
 Forwarding samples for analysis. (T. D. 1587.) 
 
 Method of sampling. (T. D. 1618 ; Ohio Creamery & Sup- 
 ply Co. V. .Rodway, T. D. 1871.) 
 
 No assessment should be recommended on the basis of a 
 single sample unless there is other evi'rtence. (T. D. 1539.) 
 
 Intent not necessary. (Lawrence v. Seyburn, 202 Fed., 
 913; T. D. 1851.) 
 
 Decision of Commissioner that certain substance or com- 
 pound constitutes adulterated butter conclusive where there 
 has been hearing and arbitrary conduct in legal sense not 
 complained of. (New York Butter Packing Co. t\ Edwards, 
 T. D. 2803.) 
 
 Decision of Commissioner is conclusive, where no unfair- 
 ness or irregularity charged. (Cohen v. Edwards, 256 Fed., 
 964.) 
 
 Sec. 5. [Ad of May 9, 1902 {32 Stat., 196) .] All parts ,„L™'t-ittte?! 
 of an Act providing for an inspection of meats for ex- 
 portation, approved August thirtieth, eighteen hundred 
 nnd ninety, and of an Act to provide for the inspection of 
 live cattle, hogs, and the carcasses and products thereof 
 •which are the subjects of interstate commerce, approved 
 JMarch third, eighteen hundred and ninety-one, and of 
 amendment thereto approved March second, eighteen 
 hundred and ninety-five, which are applicable to the sub- 
 jects and purposes described in this section shall apply to 
 jDrocess or renovated butter. And the Secretary of Agri- 
 culture is hereby authorized and required to cause a rigid 
 sanitary inspection to be made, at such times as he may 
 deem proper or necessary, of all factories and storehouses 
 where process or renovated" butter is manufactured, 
 packed, or prepared for market, and of the products 
 thereof and materials going into the manufacture of the 
 
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442 OLBOMAEGAEINE, ADULTERATED BUTTEE, ETC. 
 
 .enoyated^butterf ^^"1^. All process or renovated butter and the packages 
 ' containing the same shall be marked with the words 
 " Renovated Butter " or " Process Butter " and by such 
 other marks, labels, or brands and in such manner as may- 
 be prescribed by the Secretary of Agriculture, and no 
 process or renovated butter shall be shipped or trans- 
 ported from its place of manufacture into any other 
 State or Territory or the District of Columbia, or to any 
 foreign country, until it has been marked as provided in 
 Secretary of this scction. The Secretary of Agriculture shall make all 
 
 Agriculture shall in i i .• /■ ■' • ±1 • j.* • x a ^■ 
 
 make regulations, ncediul rcgulatious tor carrying this section into eflect, 
 and shall cause to be ascertained and reported from time 
 to time the quantity and quality of process or renovated 
 . butter manufactured, and the character and the condition 
 of the material from which it is made. And he shall also 
 have power to ascertain whether or not materials used in 
 the manufacture of said process or renovated butter are 
 deleterious to health or unwholesome in the finished prod- 
 uct, and in case such deleterious or unwholesome materials 
 are found to be used in product intended for exportation 
 or shipment into other States or in course of exportation 
 or shipment he shall have power to confiscate the same. 
 Penalty. Any persou, firm, or corporation violating any of the pro- 
 
 visions of this section shall be deemed guilty of a misde- 
 meanor and on conviction thereof shall be punished by a 
 fine of not less than fifty dollars nor more than five hun- ' 
 dred dollars or by imprisonment not less than one month 
 nor more than six months, or by both said punishments, 
 in the discretion of the court. 
 
 Removal of marks, brands, stamps, and caution labels al 
 crime. (United States r. Green, 137 Fed., 179; T. D. 980, ' 
 T. D. 578; contra, United States v. Bohl, 125 Fed., 625.) 
 
 The Food and Drugs Act of June 30, 1906 (34 Stat., 768). 
 The Secretary of Agriculture is charged with, the enforce- 
 ment of this act. 
 
 Note. — No provision is made in the act of May 9, 1902, 
 for the exportation, free of tax, of renovated butter nor for 
 drawback of tax on sucli articles when exported. Conse- 
 quently, all renovated butter for export must be stamped 
 and n»arked the same as for the domestic market. 
 
 [Act Apr. 23,' 1904, making appi'opriation for Department of Agri- 
 culture.] 
 
 * " * That the Secretary of Agriculture may construe 
 the provisions of the act of March third, eighteen hundred 
 and ninety-one, as amended March second, eighteen hun- 
 dred and ninety-five, for the insp'ection of live cattle and 
 products thereof, to include dairy products intended for 
 exportation to any foreign country and may apply, under 
 rules and regulations to be prescribed by him, the pro- 
 visions of said act for inspection and certification appro- 
 priate for ascertaining the purity and quality of such prod- 
 ucts and may cause the same to be so marked, stamped, or 
 labeled as to secure their identity and make known iu 
 markets of foreign coufitries to which they uiay be sent 
 from the United States their purity, quaUty, and grade; 
 and all the provisions of said act relating to live cattle 
 and products thereof for export shall apply to dairy prod- 
 ucts so Inspected and certified. 
 
 (S«©;H^fflea(tfei>i^l*rorc»sfflilE^No. 29.) 
 
OLEOMAEGARINE, ADULTERATED BUTTER, ETC. 443 
 
 Sec. 6. [Act of May 9, 1902 {3S Stat., 197).] That ^^^i^etu™, boota, 
 wholesale dealers in oleomargarine, process, renovated, eaie' dealers. 
 or adulterated butter shall keep such books and render 
 such returns in relation thereto as the Commissioner of 
 Internal Revenue, with the approval of the Secretary of 
 the Treasury, may, by regulation, require; and such 
 books shall be open at all times to the inspection of any 
 internal revenue officer or agent. And any person who 
 willfully violates any of the provisions of this section 
 shall for each such offense be fined not less than fifty dol- 
 lars and not exceeding five hundred dollars, and impris- 
 oned not less than thirty days nor more than six months. 
 
 Section 41, act of October 1, 1890 (26 Stat., 621), rela- 
 tive to wholesale dealers In oleoniargarine keeping books 
 and rendering returns superseded by this section. 
 
 Collectors of internal revenue should require power of 
 attorney, in proper legal form, from agents of manufactur- 
 ers of oleomargarine, etc., who render and sign monthly re- 
 turns. (T. D. 1263.) 
 
 Failure by wholesale dealer to keep books an'd render 
 returns ; although corporations are not mentioned in sec. 6 
 it was intended to embrace them. (United States r. Union 
 Supply Co., 215 U; S., 50; T. D. 1564.) 
 
 An indictment for failure to make entries in book should 
 aver that the dealer did not make nor cause to be made 
 such entries. (United States v. Lamson, 162 Fed., 165.) 
 
 Sec. T. [Act of May 9, 1902 {32 Stat., 197) .J This act 
 shall take effect on the first day of July, nineteen hun- 
 dred and two. 
 
 Oleomargarine law constitutional. (McCray v. United 
 States, 195 U. S., 27; T. D. 795; Schick v. United States, 
 Broadwell v. United States, 195 U. S., 65; T. D. 802. In 
 re Kollock, 165 U. S., 526; Dougherty v. United States, 108 
 Fed., 56; 47 C. C. A., 195.) 
 
 The oleomargarine act is not unconstitutional as a dele- 
 gation of legislative power to an administrative branch of 
 the Government. (Lockwood v. United States, 178 Fed., 
 437.) 
 
 Constitutionality of State laws relating to oleomaj-garine : 
 
 The statute of Pennsylvania prohibiting the manufacture 
 and sale of oleomargarine within the State not unconsti- 
 tutional. (PoweU V. Pennsylvania, 127 U. S., 675; 34 Int. 
 Bev. Rec, 166.) 
 
 New Hampshire law prohibiting sale of oleomargarine 
 unless colored pink unconstitutional. (Collins v. New 
 Hamp.shlre, 171 U. S., 30.) 
 
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^ 
 
 Digitized by Microsoft® 
 
Chapter Twelve. 
 FILLED CHEESE. 
 
 [Act of June G, 1896. (29 Stat., 253.)] 
 
 Sec. 
 1 and 2. Definitions. 
 
 5. Manufacturers' notice, books, 
 
 bonds, etc. 
 
 6, 7, and 8. Marks, signs, label, stamps. 
 9 and 10. Tax on filled cheese. 
 
 11. Imported filled cheese. 
 12 and 13. Penalties. 
 
 Sec. 
 
 14. Destruction of stamps on empty 
 
 packages. 
 
 15. Scientific tests. 
 
 1(J and 17. Relative to fines and forfeit- 
 ures. 
 
 18. Regulations authorized. 
 
 19. When act to take effect. 
 
 An act defining cheese, also imposing a tax upon and regulating 
 the manufacture, sale, importation, and exportation of " filled 
 cheese." . 
 
 Sec. 1. [Act of June 6, 1896 {29 Stat., 263).] That chee.e defined. 
 for the purpose of this Act, the word " cheese " shall be 
 understood to mean the food product known as cheese, 
 and which is made from milk or cream and without the 
 addition of butter, or any animal, vegetable, or other 
 oils or fats foreign to such milk or cream, with or with- 
 out additional coloring matter. 
 
 Sec. 2. That for the purposes of this Act certain sub- ^^j?^]^^'^ '=''"" 
 stances and compounds shall be known and designated 
 as "filled cheese," namely: All substances made of milk 
 or skimmed milk, with the admixture of butter, animal 
 oils or fats, vegetable or any other oils, or compounds 
 foreign to such milk, and made in imitation or semblance 
 of cheese. 
 
 Enacting clause, act of August 2, 1886, as amended by 
 act of May 9, 1902, makes all imitation dairy products sub- 
 ject to laws of States into which transported. 
 
 Special Tasees. — Sections 3 and 4 of the act of .Tune 6, 
 1896, imposing special taxes on manufacturers and dealers 
 and penalties for failure to pay special taxes, will be 
 found in chapter 3, " Special Taxes," page 176. 
 
 Sec. 5. That every manufacturer of filled cheese shall Bonds, notices, 
 file with the collector of internal revenue of the district of maJm&ctSer! 
 in which his manufactory is located such notices, inven- 
 tories, and bonds, shall keep such books and render such Books and re- 
 returns of materials and products, shall put up such 
 signs ancl affix such number to his factory, and conduct 
 his business under such surveillance of officers and 
 agents as the Commissioner of Internal Revenue, with 
 the approval of the Secretary of the Treasury, may by 
 regulation require. But the bond required of suchi 
 manufacturer shall be with sureties satisfactory to the 
 collector of internal revenue, and in a penal sum of not 
 
 445 
 
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446 FILLED CHEESE. 
 
 less than five thousand dollars; and the amount of said 
 bond may be increased from time to time, and additional 
 sureties required, at the discretion of the collector or 
 under instructions of the Commissioner of Internal Rev- 
 enue. Any manufacturer of filled cheese who fails to 
 comply with the provisions of this section or with the 
 regulations herein authorized, shall be deemed guilty of 
 
 renaity. ^ misdemeauor and upon conviction thereof shall be 
 
 fined not less than five hundred nor more than one thou- 
 sand dollars. 
 
 Manu'fleturer'3 Sec. 6. That filled cheese shall be packed by the manu- 
 Sa^nds" ^"^ facturers in wooden packages only, not before used for 
 that purpose, and marked, stamped, and branded with the 
 words "filled cheese" in black-faced letters not less than 
 two inches in length, in a circle in the center of the top and 
 bottom of the cheese ; and in black-faced letters of not less 
 than two inches in length in line from the top to the bot- 
 tom of the cheese, on the side in four places equidistant 
 from each other ; and the package containing such cheese 
 ^ shall be marked in the same mann'er, and in the same num- 
 
 ber of places, and in the same description of letters as 
 above provided for the marking of the cheese; and all 
 sales or consignments made by manufacturers of filled 
 
 Retail dealers, gheese to wholesale dealers in filled cheese or to exporters 
 of filled cheese shall be in original stamped packages. 
 Retail dealers in filled cheese shall sell only from original 
 stamped packages, and shall pack the filled cheese when 
 sold in suitable wooden or paper packages, which shall be 
 marked and branded in accordance with rules and regu- 
 lations to be prescribed by the Commissioner of Internal 
 Revenue with the approval of the Secretary of the Treas- 
 ury. Every person who knowingly sells or offers to sell, 
 or delivers or offers to deliver, filled cheese in any other 
 form than in new wooden or paper packages, marked and 
 branded as hereinbefore provided and as above described, 
 or who packs in any package or packages filled cheese in 
 any manner contrary to law, or who falsely brands any 
 package or affixes a stamp on any package denoting a less 
 amount of tax than that required by law, shall upon con- 
 
 penaities. victiou thereof be fined for each and every offense not less 
 than fifty dollars and not more than five hundred dollars 
 or be imprisoned not less than thirty days nor more than 
 one year. 
 ■.aie'°a«S'l-eten Sec. 7. That all retail and wholesale dealers in filled 
 dealers. checsB shall display in a conspicuous place in his or their 
 
 sales room a sign bearing the words " Filled cheese sold 
 here" in black-faced letters not less than six inches in 
 length, upon a white ground, with the name and number 
 of the revenue district in which his or their business 
 is conducted ; and any wholesale or retail dealer in filled 
 cheese who fails or neglects to comply with the provisions 
 of this section shall be deemed guilty of a misdemeanor, 
 and ^^^•'^^^[^l^itfm'bfWibSm^ be "fined for each and 
 
Co upon 
 stamps. 
 
 FILLED CHEPSE. 447 
 
 e\ ery offense not less than fifty dollars and not more than Penalty. 
 two hundred dollars. 
 
 Sec. 8. That everjr manufacturer of filled cheese shall ^"'^^i- 
 securely affix, by pasting on each package containing filled 
 cheese manufactured by him, a label on which shall be 
 printed, besides the number of the manufactory and the 
 district and state in which it is situated, these words: 
 " Notice. — ^The manufacturer of the filled cheese herein 
 contained has complied with all the requirements of the 
 law. Every person is cautioned not to use either this 
 package again or the stamp thereon again, nor to remove 
 the contents of this package without destroying said 
 stamp, under the penalty provided by law in such cases." 
 Every manufacturer of filled cheese who neglects to affix 
 such label to any package containing filled cheese made 
 by him or sold or offered for sale by or for him, and every 
 person who removes any such label so affixed from any 
 such package, shall be fined fifty dollars for each package Penalty. 
 in respect to which such offense is committed. 
 
 Sec. 9. That iipon all filled cheese which shall be manu- ^^^^ <"> pro*!- 
 factured there shall be assessed and collected a tax of 
 one cent per pound, to be paid by the manufacturer 
 thereof ; and any fractional part of a pound in a package 
 shall be taxed as a pound. The tax levied by this section 
 shall be represented by coupon stamps; and the provj- 
 sipns of existing laws governing the engraving, issue, sale, 
 accountability, effacement, and destruction of stamps 
 relating to tobacco and snuff, as far as applicable, are 
 hereby made tO' apply to stamps provided for by this 
 section. 
 
 See sections 3218, 3369, 3445, and 3446, Revised Statutes. 
 Filled cheese for export to be tax paid. (Cornell r. 
 Coyne, 192 U. 'S., 418; T. D. 757.) 
 
 Sec. 10. That whenever any manufacturer of filled ^^^tiTte"?"' "' 
 cheese sells or removes for sale or consumption any filled 
 cheese upon which the tax is required to be paid by stamps, 
 without paying such tax, it shall be the duty of the Com- 
 missioner of Internal Eevenue, within a period of not 
 more than two years after such sale or removal, upon 
 satisfactory proof, to estimate the amount of tax which 
 has been omitted to be paid and to make an assessment 
 therefor and certify the same to the collector. The tax 
 so assessed shall be in addition to the penalties imposed 
 by law for such sale or removal. 
 
 Sec. 11. That all filled cheese as herein defined im- ^J^po^ed tax 
 ported from foreign countries shall, in addition to any 
 import duty imposed on the same, pay an internal-revenue 
 tax of eight cents per pound, such tax to be represented 
 by coupon stamps; and such imported filled cheese and 
 the packages containing the same shall be stamped, 
 marked, and branded, as m the case of filled cheese manu- 
 factured in the United States. 
 
 Digitized by Microsoft® 
 
448 
 
 FILLED CHEESE. 
 
 Penalty, 
 
 Penalty. 
 
 Empty pack- 
 ages ; stampa to 
 be destroyed. 
 
 Deleterious in- 
 gredients, Com- 
 n>issioner to de- 
 cide. 
 
 Appeal, 
 
 Forfeiture. 
 
 Fines, penal- 
 ties, etc., recov- 
 ery. 
 
 Regulations. 
 
 Effective, 
 when. 
 
 date 
 
 Sec, 12. That any person who knowingly purchases or 
 receives for sale any filled cheese which has not been 
 branded or stamped according to law, or which is con- 
 tained in packages not branded or marked according to 
 law, shall be liable to a penalty of fifty dollars for each 
 such offense. 
 
 Sec. 13, That every person who knowingly purchases 
 or receives for sale any filled cheese from any manufac- 
 turer or importer who has not paid the special tax herein 
 provided for shall be liable, for each offense, to a penalty 
 of one hundred dollars and to a forfeiture of all articles 
 so purchased or received, or of the full value thereof. 
 
 Sec, 14, That whenever any stamped package con- 
 taining filled cheese is emptied it shall be the duty of the 
 person in whose hands the same is to destroy the stamps 
 thereon ; and any person who willfully neglects or refuses 
 so to do shall, for each such offense, be fined not exceed- 
 ing fifty dollars or imprisoned not less than ten days 
 nor more than six months. 
 
 Sec. 15. That the Commissioner of Internal Revenue 
 is authorized to have applied scientific tests,- and to de- 
 cide whether any substances used in the manufacture of 
 filled cheese contain ingredients deleterious to health. 
 But in case of doubt or contest his decision in this class 
 of cases may be appealed from to a board hereby consti- 
 tuted for the purpose, and composed of the Surgeon-Gen- 
 eral of the Army, the Surgeon-General of the Navy, and 
 the Secretary of Agriculture, and the decision of this 
 board shall be final m the premises. 
 
 Sec. 16. That all packages of filled cheese subject to 
 tax under this Act that shall be found without stamps or 
 marks as herein provided, and all filled cheese intended 
 for human consumption which contains ingredients ad- 
 judged as hereinbefore provided to be deleterious to the 
 public health, shall be forfeited to the United States. 
 
 Sec. 17. That all fines, penalties, and forfeitures im- 
 posed by this Act may be recovered in any court of com- 
 petent jurisdiction. 
 
 Sec. 18. That the Commissioner of Internal Revenue, 
 with the approval of the Secretary of the Treasury, shall 
 make all needful regulations for the carrying into effect 
 of the provisions of this Act. 
 
 Regulati(jns No. 22 relative to filled cheese. 
 
 Sec. 19. That this Act shall go into effect on the nine- 
 tieth day after' its passage, and all wooden packages con- 
 taining ten or more pounds of filled cheese found on the 
 premises of any dealer on and after the ninetieth day 
 succeeding the date of the passage of this Act, shall be 
 deemed to be taxable under section nine of this Act, and 
 shall be taxed, and shall have affixed thereto the stamps, 
 marks, and brands required by this Act or by regulations 
 made pursuant to this Act ; and for the purpose of secur- 
 ing the afEMgitgeiiS tiy&Mfma^ftMavks, and brands required 
 
FILLED CHEESE. 449 
 
 by this Act, the filled cheese shall be regarded as having 
 been manufactured and sold or removed from the manu- 
 factory for consumption or use on or after the day this 
 Act takes effect; and such stock on hand at the time of 
 the taking effect of this Act may be stamped, marked, 
 and branded under special regulations of the Commis- 
 sioner of Internal Revenue, approved by the Secretary of 
 the Treasury; and the Commissioner of Internal Reve- 
 nue may authorize the holder of such packages to mark 
 and brand the same and to affix thereto the proper tax- 
 paid stamps. 
 
 Circular letter to collectors and revenue .agents relative 
 to the enforcement of the la\v imposing a tax on filled 
 cheese. (T. D. 1516.) 
 
 140184°— 20 29 
 
 Digitized by Microsoft® 
 
Digitized by Microsoft® 
 
Chapter Thirteen. 
 
 MIXED FLOUR. 
 
 [Sections 35 to 49, act of June 13, 3 898 (30 Stat., 448), as amended by act April 12, 1002 
 
 (32 Stat., 96).] 
 
 Slec. 
 
 35. Mixed flour defined. 
 
 36. Special tax. 
 
 37. Marks and brands; penalty. 
 
 38. Packages ; penalty. 
 
 39. Label; penalty. 
 
 40. Tax, stamps, laws applicable. Re- 
 
 packed flour; penalty. 
 
 41. Assessment of tax on mixed flour 
 
 when removed without stamps. 
 
 42. Tax on Imported mixed flour ; pen- 
 
 alty. 
 
 Stec. 
 
 43. Penalty and forfeiture. 
 
 44. Removal for export. 
 
 45. Destruction of stamps on empty 
 
 packages; penalty. 
 
 46. Penalties recoverable. 
 
 47. Regulations. Additional clerks and 
 
 agents. 
 
 48. Penalty for subsequent violations. 
 
 49. Date when, act takes efEect. 
 
 Sec. 35. [Act Jime 13, 1898 {30 Stat., i67) , as amended 
 ly sec. 13, act March 2, 1901 {31 Stat., 9Ji9) , and hy sec. 9, 
 wot of April W, 1902 {32 Stat., 99). 'l That for the pur- anj^;™"* ^<"" ""^ 
 poses of this Act, the words " mixed flour " shall be taken 
 and construed to mean the food product resulting from the 
 grinding or mixing together of wheat, or wheat flour, as 
 the principal constituent in quantity, with any other 
 grain, or the product of any other grain, or other ma- 
 terial, except such material, and not the product of any 
 grain, as is commonly used for baking purposes: Pro- 
 vided, That when the product resulting from the grind- 
 ing or mixing together of wheat or wheat flour with any 
 other grain, or the product of any other grain, of which 
 wheat or wheat flour is not the principal constituent as 
 specified in the foregoing definition, is intended for sale, 
 or is sold, or offered for sale as wheat flour, such product 
 shall be held to be mixed flour within the meaning of 
 this Act. 
 
 See Articles 1 and 2, Regulations No. 25, revised July, 
 1918. 
 
 " Pancake " and " Compound " flours are classed as 
 " mixed flour " if wheat flour is principal ingredient. 
 (T. D. 971.) 
 
 Sec. 36. That every person, firm, or corporation, before 
 engaging in the business of making, packing, or repacking 
 mixed flour, shall pay a special tax at the rate of twelve 
 dollars per annum, the same to be paid and posted in 
 accordance with the provisions of sections thirty-two 
 hundred and forty-two and thirty-two hundred and 
 thirty-nine of the Revised Statutes, and subject to the 
 fines and penalties therein imposed for any violation 
 thereof. 
 
 Investigations by collectors as to proper returns. (T. D. 
 471.) 
 
 Special taxes. 
 
 Digitized by Microsoft® 
 
 451 
 
ecter. 
 
 452 MIXED FLOUR. 
 
 mlrk^^'Wd ^^^- ^^- That every person, firm, or corporation mak- 
 braiids. ing, packing, or repacking mixed flour shall plainly mark 
 
 or brand each package containing the same with the 
 T^'ords " mixed flour " in plain black letters not less than 
 two inches in length, together with the true weight of 
 such package, the names of the ingredients composing the 
 same, the name of the maker or packer, and the place 
 Cards in pack- where made or packed. In addition thereto, such maker 
 ^'^' or packer shall place in each package a card not smaller 
 
 than two inches in width by three inches in length, upon 
 which shall be printed the words " mixed flour," together 
 with the names of the ingredients composing the same, 
 and the name of the maker or packer, and the place where 
 made or packed. Any person, firm, or corporation mak- 
 ing, packing, or repacking mixed flour hereunder, failing 
 to comply with the provisions of this section, shall be 
 Penalty. deemed guilty of a misdemeanor, and upon conviction 
 shall be punished by a fine of not less than two hundred 
 and fifty dollars and not more than five hundred dollars, 
 or be imprisoned not less than sixty days nor more than 
 one year. ' 
 
 Articles 12-16, Regulations No. 25, revised July, 1918. 
 
 Packages, char- gjjc. 38. That all sales and consignments of mixed flour 
 shall be in packages not before used for that purpose ; and 
 every person, firm, or corporation knowingly selling or 
 offering for sale any mixed flour in other than marked 
 and branded packages, as required by the provisions of 
 this Act relating to the manufacture and sale of mixed 
 flour, or who packs in any package or packages any 
 mixed flour in any manner contrary to the provisions re- 
 lating to the manufacture and sale of mixed flour of this 
 Act, or who falsely marks or brands any package or 
 packages containing mixed flour, or unlawfully removes 
 such marks or brands, shall, for each such offense, be 
 
 remity. punished by a fine of not less than two hundred and fifty 
 
 dollars and not more than five hundred dollars, or by 
 imprisonment not less than thirty days nor more than 
 one year. 
 
 i^bei. Sec. 39. That in addition to the branding and marking 
 
 of mixed flour as herein provided, there shall be affixed 
 to the packages containing the same a label in the follow- 
 ing words : " Notice. — ^The (manufacturer or packer, as 
 the case may be) of the mixed flour herein contained has 
 complied with all the requirements of law. Every per- 
 son is cautioned not to use this package or label again or 
 to remove the contents without destroying the revenue 
 stamp thereon, under the penalty prescribed by law in 
 such cases." Every person, firm, or corporation failing 
 or neglecting to amx such label to any package contain- 
 ing mixed flour made or packed by him or them, or who 
 removes from any such package any label so affixed, shall. 
 
 Penalty. upon convictiou thereof, be fined not less than fifty dol- 
 lars for e^i^/tkMJiaij? M£afos0(£® 
 
MIXED FLOUR. 453 
 
 Sec. 40. That barrels or other packages in which mixed ^^^''^ °" f™"'- 
 flour may be packed shall contain not to exceed one hun- 
 dred and ninety-six pounds ; that upon the manufacture 
 and sale of mixed flovir there shall be levied a tax of four 
 cents per barrel or other package containing one hundred 
 and ninety-six pounds or more than ninety-eight pounds ; 
 two cents on every half barrel or other package contain- 
 ing ninety-eight pounds or more than forty-nine pounds ; 
 one cent on every quarter barrel or other package con- 
 taining forty-nine pounds or more than twenty- four and 
 one-half pounds; and one-half cent on every one-eighth 
 barrel or other package containing twenty-four and a 
 half pounds or less, to be paid by the person, firm, or cor- 
 poration making or packing said flour. The tax levied 
 by this section shall be represented by coupon stamps, stampl " '' ° " 
 and the provisions of existing laws governing the en- 
 graving, issue, sale, accountability, effacement, and de- bie. ^^^ ^^^ "'*' 
 struction of stamps relating to tobacco and snuff shall, so 
 far as applicable, be made to apply to stamps provided 
 in this section ; Provided, That when mixed flour, on the 
 manufacture and sale of which the tax herein imposed 
 has been paid, is sold and then repacked without the ad- 
 dition of any other material, such repacked flour shall 
 not be liable to any additional tax ; but the packages con- taxable?''^''' "°* 
 taining such repacked flour shall be branded or marked 
 as required by the provisions of section thirty-seven of 
 this Act, and shall contain the card provided for in sec- 
 tion thirty-seven hereof; and in addition thereto the 
 person, firm, or corporation repacking mixed flour shall 
 place on the packages containing the same a label in the 
 following words : " Notice. — ^The contents of this pack- ^"°*"=^- 
 age have been taken from a regular statutory package, 
 upon which the tax has been duly paid." Any person 
 violating the provisions of this section shall, upon con- 
 viction thereof, be punished by a fine of not less than two Penalty. 
 hundred and fifty dollars and not more than five hundred 
 dollars, or by imprisonment not to exceed one year. 
 
 Cartons or other small unstamped packages in original 
 packages, see articles 22-25, Eegulations No. 25, revised 
 July, 1918. 
 
 Supplement No. 1 to Regulations No. 25, concerning can- 
 cellation of tax-paid stamps ; articles IS and 19 amended to 
 permit cancellation by perforation. (T. D. 2761.) 
 
 Sec. 41. That whenever any person, firm, or corpora- stamr'tS™* °' 
 tion sells, consigns, or removes for sale, consignment, or 
 consumption any mixed flour upon which the tax re- 
 quired by this Act has not been paid, it shall be the duty 
 of the Commissioner of Internal Eevenue, for a period 
 of not more than one year after such sale, consignment, 
 or removal, upon satisfactory proof, to estimate the 
 amount of tax which should have been paid, and to make 
 an assessment therefor and certify the same to the col- 
 lector of the proper district. The tax so assessed shall 
 Digitized by Microsoft® 
 
454 
 
 MIXED FLOUR. 
 
 thereon, etc. 
 
 Penalty. 
 
 Penalty, 
 
 port. 
 
 be in addition to the penalties imposed by this Act for 
 an unauthorized sale or removal, 
 mixed™ flour, 'fax Sec. 42. That all mixcd flours, imported from foreign 
 countries, shall, in addition to anj' import duties imposed 
 thereon, pay an internal revenue tax equal in amount to 
 the tax imposed under section forty of this Act, such tax 
 to be represented by coupon stamps, and the packages 
 containing such imported mixed flour shall be marked, 
 branded, labeled, and stamped as in the case of mixed 
 flour made or packed in the United States. Any person, 
 firm, or corporation purchasing or receiving for sale or 
 repacking any such mixed flour which has not been 
 branded, labeled, or stamped, as required by this Act, or 
 Tvhich is contained in packages which have not been 
 marked, branded, labeled, or stamped, as required by this 
 Act, shall, upon conviction, be fined not less than fifty 
 dollars nor more than five hundred dollars. 
 
 Sec. 43. That any person, firm, or corporation know- 
 ingly purchasing or receiving for sale or for repacking 
 and resale any mixed flour from any maker, packer, or 
 importer, who has not paid the tax herein provided, shall, 
 for each offense, be fined not less than fifty dollars, and 
 forfeit to the United States all the articles so purchased or 
 received, or the f uU value thereof. 
 ^^RemovaUor ex- gjjg^ 44. That mixed flour may be removed from the 
 place of manufacture or from the place where packed for 
 export to a foreign country without payment of tax or 
 affixing stamps or label thereto, under such regulation 
 and the filing of such bond and other security as the Com- 
 missioner of Internal Revenue, with the approval of the 
 Secretary of the Treasury, may prescribe. Every person, 
 firm, or corporation who shall export mixed flour shall 
 plainly mark on each package containing the same the 
 words "mixed flour," and the names of the ingredients 
 composing the same, the name of the maker or packer, 
 and the place where made or packed, in accordance with 
 the provisions of sections thirty-six to forty-five, in- 
 clusive, of this Act. \ 
 
 See Regulations No. 29, relative to all exportations under 
 internal revenue laws. 
 
 Sec. 45. That whenever any package containing mixed 
 flour is emptied it shall be the duty of the person in whose 
 possession it is to destroy the stamp thereon. Any person 
 disposing of such package without first having destroyed 
 the stamp or mark or marks thereon shall, upon convic- 
 tion, be punished by a fine not exceeding the sum of 
 twenty-five dollars. 
 
 Sec. 46. That all fines, penalties, and forfeitures im- 
 posed by section thirty-six to section forty-five, both 
 inclusive, of this Act may be recovered in any court of 
 competent jurisdiction. 
 
 Sec. 47. That the Commissioner of Internal Revenue, 
 with the £^p?^^ Bj Mi%^m^^y o* t^^ Treasury, shall 
 
 Empty pack- 
 ages ; stamps 
 destroyed. 
 
 Penalty. 
 
 Penalties 
 coverable. 
 
 Regulations by 
 Commissioner. 
 
MIXED FLOUR. 465 
 
 make all needful rules and regulations for carrying into 
 effect the provisions relating to the manufacture and sale 
 of mixed flour, being section thirty-five to section forty- 
 nine, both inclusive, of this Act (and the said Commis- 
 sioner of Internal Revenue, by and with the approval of 
 the Secretary of the Treasury, for the purpose of carrying 
 said last-mentioned provisions of this Act into effect, is 
 hereby authorized to employ such additional clerks and 
 agents as may be necessary for that purpose, not to exceed 
 twenty in number. ) 
 
 Regulations No. 25, revised July, 1918. 
 Tile provision in regard to employment of clerks and 
 agents is obsolete. 
 
 Sec. 48. That any person, firm, or corporation found Penalty for sub- 
 
 ... /. 1 1 ,•!,• i» e sequent violation. 
 
 guilty or a second or any subsequent violation oi any oi 
 the provisions of section thirty-six to section forty-five, 
 both inclusive, relating to the manufacture and sale of 
 mixed flour as aforesaid, of this Act shall, in addition to 
 the penalties herein imposed, be imprisoned not less than 
 thirty days nor more than ninety da vs. 
 
 Sec. 49. That the provisions of this Act relating to the wh!"^°*'™' ^^^° 
 manufacture and sale of mixed flour shall take effect and 
 be in force sixty days from and after the date of the pas- 
 sage of this Act ; and all packages of mixed flour found on 
 the premises of any person, firm, or corporation on said 
 day, who has made, packed, or repacked the same, on 
 which the tax herein authorized has not been paid, shall 
 be deemed taxable under the provisions of section thirty- 
 six to section forty-five, both inclusive, of this Act, and 
 shall be taxed and have affixed thereon such marks, 
 brands, labels, and stamps as required by the provisions 
 of said sections or by the rules and regulations prescribed 
 by the Commissioner of Internal Revenue, under author- 
 ity of this Act. 
 
 Digitized by Microsoft® 
 
Digitized by Microsoft® 
 
Chapter Foukteek. 
 WHITE PHOSPHOEUS MATCHES.^ 
 
 [Act of April 0, 1912 (3T Etat., 81) ; T. D. 17G6.] 
 
 Sec. 
 1. 
 
 11, 
 
 12 
 
 13. 
 
 14 
 
 15. 
 
 Meaning of the Avords " white phos- 
 phorus." 
 
 2. Manufacturer shall register, file 
 
 notices, inventories, and bonds; 
 keep books ; make returns ; put 
 up signs, and afBx factory num- 
 ber. 
 
 3. How matches shall be packed ; tax 
 
 payable by stamps. Penalty for 
 noncancelation. 
 
 4. Penalties for selling, removing 
 
 without stamping, and canceling 
 stamps; for evading the tax. 
 
 5. Penalty for affixing a stamp of less 
 
 amount than the tax. 
 
 6. Penalty for removing or defacing 
 
 stamp or using stamp unlawfully 
 to evade tax. 
 
 7. Penalty for defrauding or attempt- 
 
 ing to defraud the Government ; 
 forfeiture of unstamped matches. 
 
 8. Stamps for payment of tax; ac- 
 
 count to be kept by collector. Pro- 
 visions and penalties of existing 
 laws relative to stamps made ap- 
 plicable. 
 
 An act to provide for a tax upon white phosphorus matches, and 
 for other purposes. 
 
 Sec. 1. [Act of April 9, WW {37 Stat, 81).] That for ..,*^?fe™p°h o°b- 
 the purposes of this act the words " white phosphorus " phoius." 
 shall be understood to mean the common poisonous white 
 or yellow phosphorus used in the manufacture of matches 
 and not to include the nonpoisonous forms or the non- 
 poisonous compounds of white or yellow phosphorus. 
 
 Sec. 2. That every manufacturer of white phosphorus Register, no- 
 matches shall register with the collector of internal reve- *,'",''' boTS's'', 
 nue of the district his name or style, place of manuf ac- ^°°i«' and'"f"^' 
 tory, and the place where such business is to be carried on ; tmy 'number. '^°' 
 and a failure to register as herein provided and required 
 shall subject such person to a penalty of not more than P^aity. 
 five hundred dollars. Every manufacturer of white phos- 
 phorus matches shall file with the collector of internal 
 revenue of the district in which his manufactory is located 
 such notices, inventories, and bonds, shall keep such books 
 and render such returns in relation to the business, shall 
 
 S'ec. 
 
 9. Assessment of tax on matches re- 
 moved without stamps. 
 10. Importation of white phosphorus 
 matches prohibited. Regulationa 
 to be prescribed by Secretary of 
 the Treasury. 
 
 Exportation of white isliosphorus - 
 matches prohibited ; penalty for 
 violation ; confiscation and de- 
 struction of, matches exported. 
 
 Marking, branding, stamping of 
 packages ; caution label ; penal- 
 ties for violation. 
 
 Penalty for omitting things re- 
 quired and for doing things for- 
 bidden. -«* 
 
 Courts in which fines may be re- 
 covered, j 
 
 Commissioner to make regulations. 
 IG. Provisions and penalties of existing 
 
 law made applicable. 
 17. Date act takes effect. 
 
 » Sec Regulations ::^o. 32. 
 
 Digitized by Microsoft® 
 
 457 
 
458 WHITE PHOSPHOEtrS MATCHES. 
 
 put up such signs and affix such number to his factory, 
 and conduct his business under such surveillance of officers 
 and agents as the Commissioner of Internal Revenue, with 
 the approval of the Secretary of the Treasury, may, 
 by regulation, require. The bond required of such manu- 
 f acturjer shall be with sureties satisfactory to the collector 
 of internal revenue and in the penal sum of not less than 
 one thousand dollars; and the sum of said bond may be 
 increased from time to time and additional sureties re- 
 quired at the discretion of the collector or imder instruc- 
 tions of the Commissioner of Internal Revenue. 
 
 aJkcd'^tax \°^ ^^^- ^' "^^t ^^1 white phosphorus matches shall be 
 aWe 'by stampl packed by the manufacturer thereof in packages contain- 
 Penaity. jj^g ^^^ hundred, two hundred, five hundred, one thousand, 
 
 or one thousand five hundred matches each, which shall 
 then be ijacked by the manufacturer in packages con- 
 taining not less than fourteen thousand four hundred 
 matches, and upon whitei phosphorus matches manu- 
 factured, sold, or removed there shall be levied and col- 
 lected a tax at the rate of two cents per one hundred 
 matches, which shall be represented by adhesive stamps, 
 and this tax shall be paid by the manufacturer thereof, 
 who shall affix to every package containing one hundred, 
 two hundred, five hundred, one thousand, or one thousand 
 five hundred matches such stamp of the required value 
 and shall place thereon the initials of his name and the 
 date on which such stamp is affixed, so that the same may 
 not again be used. Every person who fraudulently makes 
 use of an adhesive stamp to denote any tax imposed by 
 this section without so effectually cancehng such stamp 
 shall forfeit the sum of fifty dollars for every stamp in 
 respect to which such offense is committed. 
 Penalties f o r Sec. i. That every manufacturer of matches who man- 
 ing""with'"oS't uf^ctures, sells, removes, distribiites, or offers to sell or 
 stamping and for distribute, white phosphorus matches without there being 
 ng X. affixed thereto an adhesive stamp, denoting the tax re- 
 quired by this act, effectually canceled as provided by the 
 preceding section, shall for each offense be fined not more 
 than one thousand dollars and be imprisoned not more 
 than two years. Every manufacturer of matches who, to 
 evade the tax chargeable thereon, or any part thereof, 
 hides or conceals, or causes to be hidden or concealed, or 
 removes or conveys away, or deposits or causes to be re- 
 moved or conveyed away from or deposited in any place 
 any white phosphorus matches, shall for each offense be 
 fined not more than one thousand dollars and be impris- 
 oned not more than two years, or both, and all such 
 matches shall be forfeited. 
 Penalty for Sec. 5. That every person who affixes a stamp on any 
 of '"le^ ^ammnt Package of wliite phosphorus matches denoting a less 
 than tiie tax. amount of tax than that required by law shall for each 
 offense be fined not more than one thousand dollars or be 
 
 imprisoned jiot more than two years, or both. 
 Digitized by Microsoft® 
 
WHITE PHOSPHORUS MATCHES. 459 
 
 Sec. 6. That every person who removes, defaces, or ^^^^^^^^y ^^^ °^ 
 causes or permits or suffers the removal or defacement of facing'"ltamp « 
 any such stamp, or who uses any stamp or any package to "awflTiy?"^ ""' 
 which any stamp is affixed to cover any other white phos- 
 phorus matches than those originally contained in such 
 package with such stamp when first used, to evade the 
 tax imposed by this act, shall for every such package in 
 respect to which any such offense is committed be fined 
 fifty dollars, and all such matches shall also be forfeited. 
 
 Sec. 7. That every manufacturer of white phosphorus (raudirg*'^or at 
 matches who defrauds or attempts to defraud the United fr3*?"forfeiture 
 States of the tax imposed by this act, or any part thereof, o t ' unstampei 
 shall forfeit the factory and manufacturing apparatus 
 used by him and all the white phosphorus matches and 
 all raw material for the production of white phosphorus 
 matches found in the factory and on the factory premises, 
 or owned by him, and shall be fined not more than five 
 thousand dollars or be imprisoned not more than three 
 years, or both. All packages of white phosphorus matches 
 subject to tax under this act that shall be found without 
 stamps as herein provided shall be forfeited to the United 
 States. 
 
 Sec. 8. That the Commissioner of Internal Eevenue ^o^^'f^P^^g ^*'^ 
 shall cause to be prepared suitable and special stamps for by collector. 
 payment of the tax on white phosphorus matches pro- 
 vided for by this act. Such stamps shall be furnished to 
 collectors, who shall sell the same only to duly qualified 
 manufacturers. Every collector shall keep an account of existi^i^'"" a w"* 
 the number and denominate values of the stamps sold by reiafive ta 
 him to each manufacturer. All the provisions and pen- puSbie.™^ ^ *'" 
 alties of existing laws governing the engraving, issuing, 
 sale, affixing, cancellation, accountability, effacement, de- 
 struction, and forgery of stamps provided for internal 
 revenue are hereby made to apply to stamps provided for 
 by this act. 
 
 Sec. 9. That whenever any manufacturer of white tax'^'on^tatchM 
 phosphorus matches sells or removes any white phos- removed without 
 phorus matches without the use of the stamps required by ^ ^™^''' 
 this act, it shall be the duty of the Commissioner of In- 
 ternal Revenue, within a period of not more than two 
 years after such sale or removal, upon satisfactory proof, 
 to estimate the amount of tax which has been omitted to 
 be paid, and to make an assessment therefor and certify 
 the same to the collector, who shall collect the same ac- 
 cording to law. The tax so assessed shall be in addition 
 to the penalties imposed by law for such sale or removal. 
 
 Sec. 10. That on and after January first, nineteen whiSfphJ'sphorM 
 hundred and thirteen, white phosphorus matches, manu- ^^^^^ piowb- 
 factured wholly or in part in any foz'eign country, shall 
 not be entitled to entry at any of the ports of the United 
 States, and the importation thereof is hereby prohibited. 
 All matches imported into the United States shall be ac- 
 companied by such certificate of official inspection by 
 ^ ■' Digitized by Microsoft® 
 
460 WHITE PHOSPHORUS MATCHES. 
 
 the government of the country in which such matches 
 were manufactured as shall satisfy the Secretary of the 
 Treasury that they are not white phosphorus matches. 
 The Secretary of the Treasury is authorized and directed 
 Regulations, to prescribe such regulations as may be necessary for the 
 
 enforcement of the provisions of this section. 
 Exportation Sec. 11. That after January first, nineteen hundred 
 auy • ' 'confteca- and fourteen, it shall be unlawful to export from the 
 fraction" '^ o°f United States any white phosphorus matches. Any per- 
 nwtches export- SOU guilty of violation of this section shall be fined not 
 less than one thousand dollars and not more than five 
 thousand dollars, and any white phosphorus matches ex- 
 ported or attempted to be exported shall be confiscated 
 to the United States and destroyed in such manner as 
 may be prescribed by the Secretary of the Treasury, 
 who shall have power to issue such regulations to cus- 
 toms officers as are necessary to the enforcement of this 
 section. 
 bra^«cring,\tam|- ^EO. 12. That every manufacturer of matches shall 
 iEg of' pack- mark, brand, affix, stamp, or print, in such manner as 
 label;' penalties the Commissioncr of Internal Revenue shall prescribe, 
 for violation. ^j^ everv package of white phosphorus matches manu- 
 factured, sold, or removed by him, the factory number 
 required under section two of this act. Every such 
 manufacturer who omits to mark, brand, affix, stamp, or 
 print such factory number on such package shall be 
 fined not more than fifty dollars for each package in re- 
 spect of which such offense is committed. Every manu- 
 facturer of white phosphorus matches shall securely 
 affix by pasting on each original package containing 
 stamped packages of white phosphorus matches manu- 
 factured by him, a label, on which shall be printed, be- 
 sides the number of the manufactory and the district in 
 which it is situated, these words : " Notice. — ^The manu- 
 facturer of the white phosphorus matches herein con- 
 tained has complied with all the requirements of law. 
 Every person is cautioned not to use again the stamps 
 on the packages herein contained vmder the penalty 
 provided by law in such cases." Every manufacturer 
 of white phosphorus matches who neglects to affix such 
 label to any original package containing stamped pack- 
 ages of white phosphorus matches made by him or sold 
 or removed by or for hini, and every person who re- 
 moves any such label so affixed from any such original 
 package, shall be fined not more than fifty dollars for 
 each package in respect of which such offense is com- 
 mitted. 
 things" \*equii"ed ^^^- ^^- That if nxij^ mauufacturcr of white phos- 
 a.id for doing pjiorus matches, or any importer or exporter of matches, 
 Penfuy!°' ' ^"' shall omit, neglect, or refuse to do or cause to be done 
 any of the things required by law in carrying on or 
 conducting his business, or shall do anything by this act 
 prohibite^^Y]^%|)9j^(j|j^^c penalty or punishment 
 
WHITE PHOSPHORUS MATCHES 461 
 
 imposed bj any other section of this act for the neglect- 
 ing, omitting, or refusing to do, or for the doing or caus- 
 ing to be done, the thing required or prohibited, he shall 
 be fined one thousand dollars for each offense, and all 
 the white phosphorus matches owned by him or in which 
 he has any interest as oAvner shall be forfeited to the 
 United States. 
 
 Sec. 14. That all fines, penalties, and forfeitures im- Jurisdiction. 
 posed by this act may be recovered in any court of com- 
 petent jurisdiction. 
 
 Sec. 15. That the Commissioner of Internal Revenue, Regulations. 
 with the approval of the Secretary of the Treasury, may 
 make all needful regulations for the carrying into effect 
 of this act. 
 
 Sec. 16. That sections thirty-one hundred and sixty- Provisions oj 
 four to thirty-one hundred and seventy-seven, thirty-one pueiSf. '^^ ""'* 
 hundred and seventy-nine to thirty-two hundred and 
 forty-three, thirty-three hundred and forty-six as 
 amended, thirty-four hundred and twenty-nine as 
 amended, thirtj'-four hundred and forty-five to thirty- 
 four hundred and forty-eight, thirty-four hundred and 
 fifty to thirty-four hundred and sixty-three, all inclu- 
 sive, of the Revised Statutes of the United States, and 
 all other provisions and penalties of existing law re- 
 lating to internal revenue so far as applicable, are hereby 
 made to extend to and include and apply to the taxes im- 
 posed by this act and to the articles upon which and to 
 the persons upon whom they are imposed. 
 
 Sec. 17. That this act shall take effect on July first, ^^^^^^ ^"^ *»"« 
 nineteen hundred and thirteen, except as previously pro- 
 vided in this act ; and except as to its application to the 
 sale or removal of white phosphorus matches by the 
 manufacturers, as to which it shall take effect on Janu- 
 ary first, nineteen hundred and fifteen. 
 Regulations No. 32. 
 
 Digitized by Microsoft® 
 
Digitized by Microsoft® 
 
Chapter Fifteen. 
 UNITED STATES COTTON FUTURES ACT.^ 
 
 [Act August 11, 1916 (39 Stat. 476.)] 
 
 Sec. 
 
 1. Title of act. 
 
 2. Definitions; act of official deemed 
 
 act of association or coi-poration. 
 
 3. Tax 2 cents per pound involved. 
 
 4. Contracts to be in writing. 
 
 5. Tax not to be levied on contracts 
 
 complying with conditions pre- 
 scribed; reference of disputes to 
 Secretary of Agriculture. 
 
 6. Mode of determining difCerences to 
 
 be paid in settlement of contract 
 on delivery of cotton above or be- 
 low basis grade. 
 6A. Tax not to be levied on contracts 
 complying with conditions pre- 
 scribed, "Section Six A Con- 
 tracts." 
 
 7. Bona fide spot markets; designa- 
 
 tion. 
 
 8. Bona fide spot markets; mode of 
 
 determining. 
 
 9. Cotton standards; establishment 
 
 and promulgation ; change or re- 
 placement; forms. 
 10. Tax not levied on contracts com- 
 plying with conditions pre- 
 scribed; no tax on sale of spot 
 cotton. 
 
 Sec. 
 
 11. Tax to be paid by stamps. 
 
 12. Contracts not conforming to re- 
 
 quirements of act not enforceable 
 in courts of United States. 
 
 13. Regulations authorized ; records 
 
 and returns by clearing houses, 
 etc.; agents, appointment and 
 compensation. 
 
 14. Failure to pay tax or other viola- 
 
 tion of act or regulation ; punish- 
 ment. 
 
 15. Penalty ; additional ; United States 
 
 attorneys to prosecute actions. 
 
 16. Testimony deemed material not to 
 
 be withheld; exemption of wit- 
 ness from prosecution. 
 
 17. Payment of tax not to exempt from • 
 
 State laws, nor to prohibit tax by 
 State or municipality. 
 
 18. Expenditure on previous appro- 
 
 priation. 
 
 19. Appropriation; publication of re- 
 
 sults of investigation; disposi- 
 tion of moneys collected. 
 
 20. Date of taking effect; contracts 
 
 not affected by act. 
 
 21. Repeal; effect. 
 
 22. EfEect of partial invalidity of act. 
 
 Paet a. 
 
 Title of act. 
 
 That this Part, to be known as the /United States cot- 
 ton futures act, be, and hereby is, enacted to read and be 
 effective hereafter as follows: 
 
 Sec. 1. That this act shall be known by the short title 
 of the " United States cotton futures act. 
 
 Sec. 2. That, for the purposes of this act, the ts'^n^apt''^","'*^^"?,} 
 " contract of sale " shall be held to include sales, agree- deemed act "St 
 ments of sale, and agreements to sell. That the word ^^™"J,\\To"„. ° ' 
 " person," wherever used in this act, shall be construed to 
 import the plural or singular, as the case demands, and 
 shall include individuals, associations, partnerships, and 
 corporations. When construing and inforcing the pro- 
 visions of this act, the act, omission, or failure of any 
 official, agent, or other person acting for or employed by 
 
 »Tlie cotton futures act of Aug. 18, 1014, was hrfd to be unconstitu- 
 tional in the case of Hubbard T. Lowe, 226 Fed. 135, but an appeal to 
 the Supreme Court was afterwards dismissed. (See 242 TJ. S., 654.) The 
 law was reenacted by the act of Aug. 11, 1916, an act making appro- 
 priations for the Department of Agriculture for the fiscal year ending 
 June 30, 1917. 
 
 463 
 
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464 UNITED STATES COTTON FUTURES ACT. 
 
 any association, partnership, or corporation within the 
 scope of his employment or office, shall, in every case, also 
 be deemed the act, omission, or failure of such association, 
 partnership, or corporation as well as that of the person. 
 ,^Tax ^^2 ^^ cents Qec. 3. That upon each contract of sale of any cotton 
 voived. for future delivery made at, on, or in any exchange, board 
 
 of trade, or similar institution or place of business, there 
 is hereby levied a tax in the nature of an excise of 2 cents 
 for each pound of cotton involved in any such contract. 
 
 Subdivision 5, Schedule A, Title XI, act of February 24, 
 1919, imposes a tax of 2 cents upon each $100 in value of 
 any product or merchandise sold on exchange for future 
 delivery. 
 
 Sections 3 and 4 contemplate making of contracts in 
 accordance with usual rules of exchanges, and contract is 
 not invalid because made by broker in own name, on own 
 credit, without disclosing name of principal. (Button v. 
 Terrill, 255 Fed., 860.) 
 
 be*i^"witin *° ^^^' ^' "^^^t ^^^^ contract of sale of cotton for future 
 e in \iTi ing. (jgiiyery mentioned in section three of this act shall be in 
 writing plainly stating, or evidenced by written memo- 
 randum showing, the terms of such contract, including 
 the quantity of the cotton involved and the names and 
 addresses of the seller and buyer in such contract, and 
 shall be signed by the party to be charged, or by his agent 
 in his behalf. If the contract or memorandum specify in 
 bales the quantity of the cotton involved, without giving 
 the weight, each bale shall, for the purposes of this act, be 
 deemed to weigh five hundred pounds. 
 
 Broker's seller's slip or buyer's slip, duly signed " by the 
 party to be charged " in accordance with the rules of the 
 exchange, is sufficient to prove a valid sale or purchase, and 
 it is not essential that the contract be signed by both par- 
 ties, or that both the seller's and buyer's slips shall be 
 introduced in evidence. (Thorn v. Brown, 257 Fed., 519.) 
 
 AVhere contracts for purchase and sale of cotton futures 
 are made between brokers on an exchange, where brokers 
 only can make such contracts, this section does not require 
 that the contracts should show the names of the principals 
 for whom they act. (Id.) 
 
 levied "on '"con^ ^Ec. 5. That no tax shall be levied under this act on 
 tracts complying any contract of sale mentioned in section three hereof 
 ^'earibe™'''*'"™ if the coutract comply with each of the following condi- 
 tions : 
 
 First. Conform to the requirements of section four of, 
 and the rules and regulations made pursuant to, this act. 
 Second. Specify the basis grade for the cotton in- 
 volved in the contract, which shall be one of the grades 
 for which standards are established by the Secretary of 
 Agriculture, except grades prohibited from being de- 
 livered on a contract made under this section by the fifth 
 subdivision of this section, the price per pound at which 
 the cotton of such basis grade is contracted to be bought 
 or sold, the date when the purchase or sale was made, 
 and the month or months in which the contract is to be 
 fulfilled (Qi^iMddbyMoiKmapThiit middling shall be 
 
UNITED STATES COTTON FUTURES ACT. 465 
 
 deemed the basis grade incorporated into the contract 
 if no other basis grade be specified either in the contract 
 or in the memorandum evidencing the same. 
 
 Third. Provide that the cotton dealt with therein or 
 delivered thereunder shall be of or within the grades 
 for which standards are established by the Secretary of 
 Agriculture except grades prohibited from being de- 
 livered on a contract made under this section by the fifth 
 subdivision of this section and no other grade or grades. 
 
 Fourth. Provide that in case cotton of grade other 
 than the basis grade be tendered or delivered in settle- 
 ment of such contract, the differences above or below 
 the contract price which the receiver shall pay for such 
 grades other than the basis grade shall be the actual com- 
 mercial differences, determined as hereinafter provided. 
 
 Fifth. Provide that cotton that, because of the pres- 
 ence of extraneous matter of any character or irregulari- 
 ties or defects, is reduced in value below that of Good 
 Ordinary, or cotton that is below the grade of Good 
 Ordinary, or, if tinged, cotton that is below the grade 
 of Low Middling, or, if stained, cotton that is below the 
 gTade of Middling, the grades mentioned being of the 
 official cotton standards of the United States, or cotton 
 that is less than seven-eighths of an inch in length of 
 staple, or cotton of perished staple or of immature staple, 
 or cotton that is " gin cut " or reginned, or cotton that 
 is " repacked " or " false packed " or " mixed packed " 
 or " water packed," shall not be delivered on, under, or 
 in settlement of such contract. 
 
 Sixth. Pz'ovide that all tenders of cotton under such 
 contract shall be the full number of bales involved 
 therein, except that such variations of the number of 
 bales may be permitted as is necessary to bring the total 
 weight of the cotton tendered within the provisions of 
 the contract as to weight ; that, on the fifth business day 
 prior to delivery, the person making the tender shall 
 give to the person receiving the same written notice of 
 the date of delivery, and that, on or prior to the date so 
 fixed for delivery, and in advance of final settlement of 
 the contract, the person making the tender shall fur- 
 nish to the person receiving the same a written notice 
 or certificate stating the grade of each individual bale 
 to be delivered and, by means of marks or numbers, 
 identifying each bale with its grade. 
 
 Seventh. Provide that, in case a dispute arises be- disputer'tif sec- 
 tween the person making the tender and the person re- '^^^^ °' -^s"' 
 ceiving the same, as to the classification of any cotton 
 tendered under the contract, either party may refer the 
 question of the true classification of said cotton to the 
 Secretary of Agriculture for determination, and that 
 such dispute shall be referred and determined, and the 
 costs thereof fixed, assessed, collected, and paid in such 
 manner and in accordance with such rules and regula- 
 
 140184°— 20 30 Digitized by Microsoft® 
 
4&6 UNITED STATES COTTON FTJTUEES ACT. 
 
 tions as may be prescribed by the Secretarj- of Agricul- 
 ture. 
 
 The pi'ovisions of the third, fourth, fifth, sixtli, and 
 seventh subdivisions of this section shall be deemed fully 
 incorporated into any such contract if there be written 
 or printed thereon, or on the memorandum evidencing 
 the same, at or prior to the time the same is signed, the 
 phrase " subject to United States cotton futures act, sec- 
 tion five." 
 
 The Secretary of Agriculture is authorized to pre- 
 scribe rules and regulations for carrying out the pur- 
 poses of the se-venth subdivision of this section, and his 
 findings, upon any dispute referred to him under said 
 seventh subdivision, made after the parties in interest 
 have had an opportunity to be heard by him or such 
 officer, officers, agent, or agents, of the Department of 
 Agriculture as he ma,j designate, shall be accepted in 
 the courts of the United States in all suits between such 
 parties, or their privies, as prima facie evidence of the 
 true classification of the cotton involved. 
 
 Disputes arising upon delivery of cotton made upon con- 
 tract under this section must be settled by the courts. 
 (T. D. 2177.) 
 
 minhfl °' iistl'- Sec. 6. That for the purposes of section five of this act 
 ences to be paid the differences above or below the contract price which 
 
 in settlement ot.i ■ in j» j_j_ _e ii ii 
 
 contract on de- tiie rcceiver shall pay tor cotton oi grades above or below 
 above or Mow ^^^ basis grade in the settlement of a contract of sale for 
 basis grade. the future delivery of cotton shall be determined by the 
 actual commercial differences in value thereof upon the 
 sixth business day prior to the day fixed, in accordance 
 with the sixth subdivision of section five, for the delivery 
 of cotton on the contract, established by the sale of spot 
 cotton in the market where the future transaction in- 
 volved occurs and is consummated if such market be a 
 bona fide spot market ; and in the event there be no bona 
 fide spot market at or in the place in which such future 
 transaction occurs, then, and in that case, the said differ- 
 ences above or below the contract price which the receiver 
 shall pay for cotton above or below the basis grade shall 
 be determined by the average actual commercial differ- 
 ences in value thereof, upon the sixth business day prior 
 to the day fixed, in accordance with the sixth subdivision 
 of section five, for the delivery of cotton on the contract, 
 in the spot markets of not less than five places designated 
 for the purpose from time to time by the Secretary of 
 Agriculture, as such values were established by the sales 
 of spot cotton, in such designated five or more markets: 
 Provided, That for the purposes of this section such 
 values in the said spot markets be based upon the stand- 
 ards for grades of cotton established by the Secretary 
 of Agriculture: And provided further, Tliat whenever 
 the value of one grade is to be determined from the sale 
 or sales of spot cotton of another grade or grades, such 
 Digitized by Microsoft® 
 
UNITED STATES COTTON FUTURES ACT. 467 
 
 value shall be fixed in accordance Avitli rules and regula- 
 tions which shall be prescribed for the purpose by the 
 Secretary of Agriculture. 
 
 Sec. 6A. That no tax shall be levied under this act on i^^^^ "°^ ^"J^, 
 any contract of sale mentioned in section three hereof if t''ast» complying 
 
 ,1 •; , , • 1 J.1 J. ■ j_^ jL ^ 1 with conditions 
 
 the contract provide that, in case cotton or grade or grades prescribed, "seo- 
 other than the basis grade specified in the contract shall tracts!'^ * °'"'" 
 be tendered in performance of the contract, the parties to 
 such contract may agree, at the time of the tender, as to 
 the price of the grade or grades so tendered, and that if 
 they shall not then agree as to such price, then, and in 
 that event, the buyer of said contract shall have the right 
 to demand the specific fulfillment of such contract by the 
 actual delivery of cotton of the basis grade named 
 therein, and at the price specified for such basis grade in 
 said contract, and if the contract also comply with all the 
 terms and conditions of section five hereof not inconsist- 
 ent with this section : Provided, That nothing in this sec- 
 tion shall be so construed as to relieve from the tax 
 levied by section three of this act any contract in which 
 or in the settlement of or in respect to which; any de\dce 
 or arrangement whatever is resorted to, or any agreement 
 is made, for the determination or adjustnaent of the price 
 of the grade or grades tendered other than the basis 
 grade specified in the contract by any " fixed difference " 
 system, or- by arbitration, or by any other method not 
 provided for by this act. 
 
 Contracts made in compliance with this section shall be 
 known as " Section six A Contracts." The provisions of 
 this section shall be deemed fully incorporated into any 
 such contract if there be written or printed thereon, or 
 on the memorandum evidencing the same, at or prior to 
 the time the same is signed, the phrase " Subject to 
 United States cotton futures act, section six A." 
 
 Section ten of this act shall not be construed to apply 
 to any contract of sale made in compliance with section 
 six A hereof. 
 
 Sec. 7. That for the purposes of this act the only mar- ^^Ssf'^Vs^g- 
 kets which shall be considered bona fide spot markets nation. 
 shall be those which the Secretary of Agriculture shall, 
 from time to time, after investigation, determine and 
 designate to be such, and of which he shall give public 
 notice. 
 
 Sec. 8. That in determining, pursuant to the provisions ma?teta f''''m?dc 
 of this act, what markets are bona fide spot markets, the "f determining. 
 Secretary of Agriculture is directed to consider only 
 markets in which spot cotton is sold in such volume and 
 under such conditions as customarily to reflect accurately 
 the value of middling cotton and the differences between 
 the prices or values of middling cotton and of other 
 grades of cotton for which standards shall have been es- 
 tablished by the Secretary of Agriculture: Provided, 
 
 Digitized by Microsoft® 
 
468 UNITED STATES COTTOK FtTTURES ACT. 
 
 That if there be not sufficient places, in the markets of 
 ■which are made bona fide sales of spot cotton of grades 
 for which standards are established by the Secretary of 
 Agriculture, to enable him to designate at least five spot 
 markets in accordance with section six of this act, he 
 shall, from data as to spot sales collected by him, make 
 rules and regulations for determining the actual commer- 
 cial differences in the value of spot cotton of the grades 
 established by him as reflected by bona fide sales of spot 
 cotton, of the same or different grades, in the markets 
 selected and designated by him, from time to time, for 
 that purpose, and in that event, differences in value of 
 cotljon of various grades involved in contracts made pur- 
 suant to section five of this act shall be determined in 
 compliance with such rules and regulations. 
 2.,is°*'°eb(abU6hI Sec. 9. That the Secretary of Agriculture is authorized, 
 IJiuration''- ^offi'. ^I'o™ t™^ to time, to establish and promulgate standards 
 liai cotton' stand- of cottou by which Its quality or value may be judged or 
 i't.iU'.j states*.''^ determined, including its grade, length of staple, strength 
 of staple, color, and such other qualities, properties, and 
 conditions "as may be standardized in practical form, 
 which, for the purposes of this act, shall be known as the 
 " Official cotton standards of the United States," and to 
 adopt, change, or replace the standard for any grade of 
 cotton established under the act making appropriations 
 for the Department of Agriculture for the fiscal year end- 
 ing June thirtieth, nineteen hundred and nine (Thirty- 
 fifth Statutes at Large, page two hundred and fifty-one), 
 and acts supplementary thereto: Provided, That any 
 standard of any cotton established and promulgated 
 under this act by the Secretary of Agriculture shall not 
 be changed or replaced within a period less than one year 
 from and after the date of the promulgation thereof by 
 the Secretary of Agriculture: Provided further, That, 
 char.ee or re- subsequent to six montlis after the date section three of 
 p,.!c«ti.iii. ^^^^ ^^^ becomes effective, no change or replacement of 
 
 any standard of any cotton established and promulgated 
 under this act by the Secretary of Agriculture shall be- 
 come effecti^•e until after one year's public notice thereof, 
 which notice shall specify the date when the same is to 
 become effective. The Secretary of Agriculture is au- 
 thorized and directed to prepare practical forms of the 
 official cotton standards which shall be established by 
 him, and to furnish such practical forms from time to 
 time, upon request, to any person, the cost thereof, as de- 
 termined by the Secretary of Agriculture, to be paid by 
 the person requesting the same, and to certify such prac- 
 rorms. ^.^^1 ^Qj,j^^g imder the seal of the Department of Agricul- 
 
 ture and under the signature of the said Secretary, there- 
 to affixed by himself or by some official or employee of 
 the Department of Agriculture thereunto duly author- 
 ized by the said Seci'etary, 
 
 Digitized by Microsoft® 
 
UNITED STATES COTTON FUTURES ACT. 469 
 
 Sec. 10. That no tax shall be levied imcler this act on ^^^^^ ™t *o^be 
 any contract of sale mentioned in section three hereof tracts compiyfng 
 if the contract comply with each of the following con- p;*^eribe°d"'""°™ 
 ditions : 
 
 First. Conform to the rules and regulations made pur- 
 suant to this act. 
 
 . Second. Specify the grade, type, sample, or descrip- 
 tion of the cotton involved in the contract, the price per 
 pound at which such cotton is contracted to be bought or 
 sold, the date of the purchase or sale, and the time when 
 shipment or delivery of such cotton is to be made. 
 
 Third. Provide that cotton of or within the grade or 
 of the type, or according to the sample or description 
 specified in the contract shall be delivered thereunder, 
 and that no cotton which does not conform to the type, 
 sample, or description, or which is not of or within the 
 grade specified in the contract shall be tendered or de- 
 livered thereunder. 
 
 Fourth. Provide that the delivery of cotton under the 
 contract shall not be effected by means of " set-off " or 
 " ring " settlement, bvit only by the actual transfer of the 
 specified cotton mentioned in the contract. 
 
 The provisions of the first, third, and fourth subdivi- 
 sions of this section shall be deemed fully incorporated 
 into any such contract if there be written or printed 
 thereon, or on the document or memorandum evidencing 
 the same, at or prior to the £ime the same is entered into, 
 the words " subject to United States cotton futures act, 
 section ten." 
 
 This act shall not be construed to impose a tax on any no tax on sale 
 sale of spot cotton. °' =p°' "tt°"- 
 
 Tliis section shall not be construed to apply to any con- 
 tract of sale made in compliance with section five of 
 this act. 
 
 Sec. 11. That the tax imposed by section three of this Tax to be paid 
 act shall be paid by the seller of the cotton involved in ^ ^ *™''^' 
 the contract of sale, by means of stamps, which shall be 
 affixed to such contracts or to the memoranda evidencing 
 the same, and canceled in compliance with rules and 
 regulations which shall be prescribed by the Secretary of ^^ 
 
 the Treasury. 
 
 Seo. 12. That no contract of sale of cotton for future Contrarfs not 
 delivery mentioned in section three of this act which does requirments of 
 not conform to the requirements of section four hereof IbL In' courtJ°of 
 and has not the necessary stamps affixed thereto, as re- united states. 
 quired by section eleven hereof, shall be enforceable in 
 any court of the United States by or on behalf of any 
 party to such contract or his privies. 
 
 Sec. 13. That the Secretary of the Treasury is author- Regulations au- 
 
 ,, , ^ T ,•' , 1 ,•' T J • thorized ; records 
 
 ized to make and promulgate such rules and regulations and returns by 
 as he may deem necessary to collect the tax imposed by etc?"^'"^ bouses, 
 this act and otherwise to enforce its provisions. Further 
 
 Digitized by Microsoft® 
 
470 UNITED STATES COTTON FUTURES ACT. 
 
 to effect this purpose, he shall require all persons coming 
 within its provisions to keep such records and statements 
 of account, and may require such persons to make such 
 returns, verified under oath or otherwise, as will fully 
 and correctly disclose all transactions mentioned in sec- 
 tion three of this act, including the making, execution, 
 settlement, and fulfillment thereof; he may require all 
 persons who act in the capacity of a clearing house, clear- 
 ing association, or similar institution for the purpose of 
 clearing, settling, or adjusting transactions mentioned in 
 section three of this act to keep such records and to 
 make such returns as will fully and correctly disclose all 
 facts in their possession relating to such transactions; 
 Agents, ap- and he may appoint agents to conduct the inspection 
 
 compSSation. " ^ uecessarj^ to collect said tax and otherwise to enforce 
 this act and all rules and regulations made by him in pur- 
 suance hereof, and may fix the compensation of such 
 Revenue laws agents. The provisions of the intemal-i'evenue laws of 
 
 made applicable, ^j^^ United States, so far as applicable, including sections 
 thirty-one hundred and seventy-three, thirty-one hundred 
 and seventy-four, and thirty-one hundred and seventy- 
 five of the Revised Statutes, as amended, are hereby ex- 
 tended and made to apply to this act. 
 
 Regulations No. 36, August 29, 1916 (T. D. 2358) ; No. 
 40, November 30, 1917 (T. D. 2608). 
 
 Failure to pay g^c. 14. That any person liable to the payment of any 
 
 tax or other vlo- . t i j_t ■ ^ j. ^' jl ■■! j^ ^ 
 
 lation of act or tax imposecl by tins act who tails to pay or evades or 
 ilhment"' ' '"'"' attempts to evade the payment of such tax, and any per- 
 son who otherwise violates any provision of this act, or 
 any rule or regulation made in pursuance hereof, shall be 
 deemed guilty of a misdemeanor, and, upon conviction 
 thereof, shall be fined not less than $100 nor more than ! 
 $20,000, in the discretion of the court; and, in case of 
 natural persons, may, in addition, be punished by im-j 
 prisonment for not less than sixty days nor more than 
 three years, in the discretion of the court. 
 tionlT.^"'^' °'^^^' ^^^* l'"*- That in addition to the foregoing punishment 
 there is hereby imposed, on account of each violation of 
 this act, a penalty 6i $2,000, to be recovered in an action 
 founded on this act in the name of the United States 
 as plaintiff, and when so recovered one-half of said 
 amount shall be paid over to the person giving the infor- 
 united states mation upon which such recovery was based. It shall be 
 lcute"ectioni!'°°' ^^6 duty of the United States attorneys, to whom satis- 
 factory evidence of violations of this act is furnished, to 
 institute and prosecute actions for the recovery of the 
 penalties prescribed by this section. 
 Testimony Sec. 16. That uo persou whose evidence is deemed mate- 
 nor'o" brwitt- vial by the officer prosecuting on behalf of the United 
 •"f^id. States in any case brought under any provision of this 
 
 act shall withhold his testimony because of complicity by 
 him in any violation of this act or of any regulation made 
 pursuant to this act, but any such person called by such 
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UNITED STATES COTTON EUTUEES ACT, 471 
 
 officer who testifies in such case shall be exempt from Exemption o« 
 
 ,. e Of , 1 • 1 T • J i- witness from 
 
 prosecution tor any oiiense to which his testimony re- prosecution. 
 lates. 
 
 Sec. 17. That the payment of any tax levied by this Payment of 
 act shall not exempt any person from any penalty or pun- empt"from'''stl?e 
 ishment now or hereafter provided by the laws of any Jj*.™- "O'^'^ p™- 
 State for entering into contracts of sale of cotton for state or munici- 
 f uture deliver}', nor shall the payment of any tax imposed p*^'"'' 
 by this act be held to prohibit anj'^ State or municipalitj'^ 
 from imposing a tax on the same transaction. 
 
 Sec. 18. That there is hereby appropriated, out of any Expenditure on 
 moneys in the Treasury not otherwise appropriated, for piMon."^ *'" 
 the fiscal year ending June thirtieth, nineteen hundred 
 and sixteen, the unexpended balance of the sum appro- 
 priated by the act of March fourth, nineteen hundred 
 and fifteen (Thirty-eighth Statutes at Large, page one 
 thousand and seventeen), for collecting "the cotton 
 futures tax," or so much thereof as may be necessary, to 
 enable the Secretary of the Treasury to carry out the 
 provisions of this act and any duties remaining to be 
 performed by him under the United States cotton futures 
 act of August eighteenth, nineteen hundred and four- 
 teen (Thirty -eighth Statutes at Large, page six hundred 
 and ninety -three). 
 
 Sec. 19. That there are hereby appropriated out of any Appropriation, 
 moneys in the Treasury not otherwise appropriated, 
 available until expended, the unexpended balance of the 
 sum of $150,000 appropriated by section twenty of the 
 said act of August eighteenth, nineteen hundred and 
 fourteen, and for the fiscal year ending June thirtieth, 
 nineteen hundred and sixteen, the unexpended balance 
 of the sum of $75,000 appropriated for the "Enforce- 
 ment of the United States cotton futures act," by the 
 act making appropriations for the Department of Agri- 
 culture for the fiscal year ending June thirtieth, nineteen 
 hundred and sixteen (Thirty-eighth Statutes at Large, 
 page one thousand and eighty-six) , or so much of each of 
 said unexpended balances as may be necessary, to be used 
 by the Secretary of , Agriculture for the same purposes, 
 in carrying out the provisions of this act, as those for 
 which said sums, respectively, were originally appropri- 
 ated, and to enable the Secretary of Agriculture to carry 
 out any duties remaining to be performed by him under 
 the said act of August eighteenth, nineteen hundred and 
 fourteen. The Secretary of Agriculture is hereby di- 
 rected to publish from time to time the results of investi- Publication of 
 
 .. -^-T. ji ±_T ' iAn 1 results of mves- 
 
 gations made m pursuance or this act. All sums col- tigation ; aispo- 
 lected by the Secretary of Agriculture as costs under coAecte'd. '^°°''^'' 
 section five, or for furnishing practical forms under sec- 
 tion nine, of this act, shall be deposited and covered into 
 the Treasury as miscellaneous receipts. 
 
 Sec. 20. That sections nine, eighteen, and nineteen of 
 this act and all provisions of this act authorizing rules 
 
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472 UNITED STATES COTTON FUTUEES ACT. 
 
 teecu confrac"! ^^^^ regulations to be prescribed shall be effective im- 
 not affected by mediately. All other sections of this act shall become 
 *'^'*' and be effective on and after the first day of the calendar 
 
 month next succeeding the date of the passage of this 
 act : Provided, That nothing in this act shall be construed 
 to apply to any contract of sale of any cotton for future 
 delivery mentioned in section three of this act which 
 shall have been made prior to the first day of the calen- 
 dar month next succeeding the date of the passage of 
 this act. 
 Repeal ; effect. g^^_ ^^^ rpj^^^ ^-^^ ^^^ entitled "An act to tax the privi- 
 lege of dealing on exchanges, boards of trade, and similar 
 places in contracts of sale of cotton for future delivery, 
 and for other purposes," approved August eighteenth, 
 nineteen hundred and fourteen (Thirty-eighth Statutes 
 at Large, page six hundred and ninety-three), is hereby 
 repealed, effectiA'e on and after the first day of the calen- 
 dar month next succeeding the date of the passage of this 
 act: Provided, That nothing in this act shall be con- 
 strued to affect any right or privilege accrued, any 
 penalty or liability incurred, or any proceeding com- 
 menced under said act of August eighteenth, nineteen 
 hundred and fourteen, or to diminish any authority con- 
 ferred by said act on any official of the United States 
 necessary to enable him to carry out any duties remaining 
 to be performed by him under the said act, or to impair 
 the effect of the findings of the Secretary of Agriculture 
 upon any dispute referred to him under said act, or to 
 affect any right in respect to or arising out of any con- 
 tract mentioned in section three of said act, made on or 
 subsequent to February eighteenth, nineteen hundred and 
 fifteen, and prior to the first day of the calendar month 
 next succeeding the date of the passage of this act, but so 
 far as concerns any such contract said act of August 
 eighteenth, nineteen hundred and fourteen, shall remain 
 in force with the same effect as if this act had not been 
 passed. 
 Effect of par- Sec. 22. That if any clause, sentence, paragraph, or 
 act '"^^'"^'*^ °' part of this act shall for any reason be adjudged by any 
 court of competent jurisdiction to be invalid, such judg- 
 ment shall not affect, impair, or invalidate the remainder 
 thereof, but shall be confined in its operation to the 
 clause, sentence, paragraph, or part thereof directly in- 
 volved in the controversy in which such judgment shall 
 have been rendered. 
 
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Chapter Sixteen. 
 
 IXCOME TAXES/' ^ 
 
 Sec. 
 200. 
 
 [Title II, Act of I'l bruaiT 24, 1019 (40 Stat. 1057).] 
 
 Pabt I. — Ge>;e;r,vl 1'rovisions. 
 Sec. 
 
 Definitions. 
 
 201. Diviclends. 
 
 202. Basis for determining gain or loss. 
 
 203. Inventories. 
 
 204. Net losses. 
 
 20.5. Fiscal year with different rates. 
 206. Parts of income subject to rates 
 for different years. 
 
 Pakt II. — Individuals. 
 
 Sec. 
 210. 
 211. 
 232. 
 213. 
 214. 
 215. 
 236. 
 217. 
 218. 
 219. 
 220. 
 
 Sec. 
 230. 
 231. 
 232. 
 233. 
 234. 
 235. 
 
 Sec. 
 250. 
 
 251. 
 
 252. 
 253. 
 
 254. 
 255. 
 
 rate. 
 
 Normal tax 
 Surtax. 
 
 Net income defined ; computation. 
 Gross income. 
 Deductions. 
 Items not deductible. 
 Credits allowed. 
 Nonresident aliens. 
 Partnerships. 
 Estates and trusts. 
 Profits of corporations taxable to 
 stockholders. 
 
 Sec. 
 221 
 222. 
 223! 
 224. 
 225. 
 226. 
 
 227 
 
 228'. 
 
 Payment of tux at source. 
 
 Credit for taxes. 
 
 Individual returns. 
 
 Partnership returns. 
 
 Fiduciary returns. 
 
 Returns when accounting period 
 
 changed. 
 Time and place for flUng returns. 
 Understatement in returns. 
 
 Pakt III. — Corporations. 
 
 Rates of tax. 
 
 Conditional and other exemptions. 
 
 Net income defined. 
 
 Gross income. 
 
 Deductions allowed. 
 
 Items not deductible. 
 
 Sec. 
 236. 
 237. 
 238. 
 239. 
 240. 
 
 Credits allowed. 
 Payment of lax at source. 
 Credit for taxes. 
 Returns. 
 Consolidated returns. 
 
 241. Time and place for filing returns. 
 
 Part IV. — Administrative Provisions. 
 
 Payment of taxes in installments ; 
 penalties. 
 
 Receipts for taxes. 
 
 Refunds. 
 
 Penalties for failure to make re- 
 turns or supply information. 
 
 Returns of payments of dividends. 
 
 Brokers' returns. 
 
 Sec. 
 256. 
 2.i7. 
 258. 
 259. 
 260. 
 
 261. 
 
 Information at source. 
 Returns as public records. 
 Publication of statistics. 
 Collection of foreign items. 
 Citizens of United States posses- 
 sions. 
 Porto Rico and Philippine Islands. 
 
 TITLE II.— IXCOME TAX. 
 Part I. — General Provisions. 
 
 Sec. 200. [Act of February ^4, 19J9 UO Stat., 1067). \ 
 That when used in this title — 
 
 The term " taxable year " means the calendar year, or 
 the fiscal year ending during such calendar year, upon 
 the basis of which the net income is computed under sec- 
 tion 212 or section 232. The term " fiscal year " means 
 an accounting period of twelve months ending on the last 
 
 1 See Regulations No. 45. ,„.,„.,„ 
 
 s Act of October 3, 1913, po.st, p. 729 ; act of September 8, 1916, post, p. 
 793 ; act of October 3, 1917, post, p. 849. 
 
 Digitized by Microsoft® 
 
 Definitions. 
 
 Taxable 
 
 year." 
 
 ' Fiscal year.' 
 
 473 
 
474 INCOME TAXES. 
 
 day of any month other than December. The first tax- 
 able year, to be called the taxable year 1918, shall be the 
 calendar year 1918 or any fiscal year ending during the 
 calendar year 1918 ; 
 " Fiduciary." -pj^g ^gj.^^ « fiduciary " means a guardian, trustee, exec- 
 utor, administrator, receiver, conservator, or any person 
 acting in any fiduciary capacity for any person, trust or 
 estate ; 
 
 SLge^"^^^°^^''^ The term " withholding agent " means any person re- 
 quired to deduct and withhold any tax under the provi- 
 sions of section 221 or section 237 ; 
 
 service" '^cOTp'ira- The term " personal service corporation " means a oor- 
 
 tio°-" poration whose income is to be ascribed primarily to the 
 
 activities of the principal owners or stockholders who are 
 themselves regularly engaged in the active conduct of the 
 affairs of the corporation and in which capital (whether 
 invested or borrowed) is not a material income-producing 
 factor ; but does not include any foreign corporation, nor 
 any corporation 50 per centum or more of whose gross 
 income consists either (1) of gains, profits or income de- 
 rived from trading as a principal, or (2) of gains, profits, 
 commissions, or other income, derived from a Govern- 
 ment contract, or contracts made between April 6, 1917, 
 and November 11, 1918, both dates inclusive; 
 " Paid." -pj^g term " paid," for the purposes of the deductions 
 
 and credits under this title, means " paid or accrued " or 
 
 currfi"'* °' '"' " P^i*i ^^ incurred," and the terms " paid or incurred " 
 " Paid or ac- and " paid or accrued " shall be construed according to 
 
 crued. ^j^^ method of accounting upon the basis of which the net 
 
 income is computed under section 212. 
 Dividends. Sec. 201. (a) That the term " dividend " when used in 
 
 this title (except in paragraph (10) of subdivision (a) 
 of section 234) means (1) any distribution made by a 
 corporation, other than a personal service corporation, 
 to its shareholders or members, whether in cash or in 
 other property or in stock of the corporation, out of its 
 earnings or profits accumulated since February 28, 1913, 
 or (2) any such distribution made by a personal service 
 corporation, out of its earnings or profits accumulated 
 since February 28, 1913, and prior to January 1, 1918. • 
 
 from"e*arning"o? i^) -^^J distribution shall be deemed to have been 
 
 profits. made from earnings or profits unless all earnings and 
 
 profits have first been distributed. Any distribution 
 made in the year 1918 or any year thereafter shall be 
 deemed to have been made from earnings or profits ac- 
 cumulated since February 28, 1913, or, in the case of a 
 personal service corporation, from the most recently ac- 
 cumulated earnings or profits ; but any earnings or profits 
 accumulated prior to March 1, 1913, may be distributed 
 in stock dividends or otherwise, exempt from the tax, 
 after the earnings and profits accumulated since Feb- 
 ruary 28, 1913, have been distributed. 
 
 Digitized by Microsoft® 
 
INCOME TAXES. 475 
 
 (c) A dividend paid in stock of the corporation shall ^J^"'^''^ '^'^'' 
 be considered income to the amount of the earnings or 
 
 profits distributed. Amounts distributed in the liquida- 
 tion of a corporation shall be treated as payments in ex- 
 change for stock 01' shares, and any gain or profit realized 
 thereby shall be taxed to the distributee as other gains 
 or profits. 
 
 (d) If any stock dividend (1) is received by a taxpayer Dividends of 
 between January 1 and November 1, 1918, both dates in- tfi^ ' "^^'^ "' 
 elusive, or (2) is during such period bona fide authorized 
 
 or declared, and entered on the books of the corporation, 
 and is received by a taxpayer after November 1, 1918. 
 and before the expiration of thirty days after the passage 
 of this Act, then such dividend shall, in the manner pro- 
 vided in section 206, be taxed to the recipient at the rates 
 prescribed by law for the years in which the corporation 
 accumulated the earnings or profits from which such divi- 
 dend was paid, but the dividend shall be deemed to have ^f "'"e^ „" ' 
 
 1 • 1 n -1 1 11* profits I r m 
 
 been paid from the most I'ecentiy accmnulated earnings which paid. 
 or profits. 
 
 (e) Any distribution made during the first sixty days ear°ings^'of"tax' 
 of any taxable year shall be deemed to have been made aWe years. 
 from earnings or profits accumulated during preceding 
 
 taxable years; but any distribution made during the re- 
 mainder of the taxable year shall be deemed to have been 
 made from earnings or profits accumulated between the 
 close of the preceding taxable year and the date of dis- 
 tribution, to the extent of such earnings or profits, and if 
 the books of the corporation do not show the amount of 
 such earnings or profits, the earnings or profits for the 
 accounting period within which the distribution was 
 made shall be deemed to have been accumulated ratably 
 during such period. 
 
 Seo. 202. (a) That for the purpose of ascertaining the Basis for de- 
 gain derived or loss sustained from the sale or other dis- or™"!"^ °'''° 
 position of property, real, personal, or mixed, the basis 
 shall be — 
 
 (1) In the case of property' acquired before Blarch 1, y^°J"^^^'f ^''' 
 1913, the fair market price or value of such property as of iSrch i, ^913^.° 
 that date ; and 
 
 (2) In the case of property acquired on or after that property ac- 
 date, the cost thereof; or the inventory value, if the in- ?^lllf^ 1/1913" 
 ventory is made in accordance with section 203. 
 
 (b) When property is exchanged for other property, Excharge of 
 the property received in exchange shall for the purpose of p™pert.v. 
 determining gain or loss be treated as the equivalent of 
 cash to the amount of its fair market value, if any; but 
 when in connection with the reorganization, merger, or 
 consolidation of a corporation a person receives in place 
 of stock or securities owned by him new stock or securities 
 of no greater aggregate par or face value, no gain or 
 loss shall be deemed to occur from the exchange, and the 
 
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1 476 
 
 INCOME TAXES. 
 
 new stock or securities received shall be treated as taking 
 tile place of the stock, securities, or jaroperty exchanged. 
 tion,"mfi|er''or When in the case of any such reorganization, merger 
 consolidation of or Consolidation the aggregate par or face value of the 
 coipoia ion. ^^^^^ stock or securities I'eceived is in excess of the aggre- 
 gate par or face value of the stock or securities exchanged, 
 a like amount in par or face value of the new stock 
 or securities received shall be treated as taking the 
 place of the stock or securities exchanged, and the amount 
 of the excess in par or face value shall be treated as 
 a gain to the extent that the fair market value of the 
 new stock or securities is greater than the cost (or if 
 acquired prior to March 1, 1913, the fair market value as 
 of that date) of the stock or securities exchanged. 
 
 Article 1563, Regulations No. J5, relating to exchange of 
 property, amended. (T. D. 2071.) 
 
 Exchange of stock for stock of no greater par value ; 
 amendment of article 1567, Regulations No. 45. (T. D. 
 2870.) 
 
 Articles 1566 and 1567, Regulations No. 45. relating to 
 exchange of property and stock and to exchange of stock for 
 other stock of no greater par value, modified. (T. D. 
 2924.) 
 
 Article 1568, Regulations No. 45, relating to determination 
 of gain or loss from subsequent sale, amended. (T. D. 2963.) 
 
 Inventories. Sec. 203. That whenever in the opinion of the Com- 
 
 missioner the use of inventories is necessary in order 
 clearly to determine the income of any taxpayer, inven- 
 tories shall be taken by such taxpayer upon such basis as 
 the Commissioner, with the approval of the Secretary, 
 may prescribe as conforming as nearly as may be to the 
 best accounting practice in the trade or business and as 
 most clearly reflecting the income. 
 Deflnlticn!"'""'"' S^c. 204. (a) That as used in this section the term " net 
 loss" refers only to net losses resulting from either (1) 
 the operation of any business regularly carried on by the 
 taxpayer, or (2) the bona fide sale by the taxpayer of 
 plant, buildings, machinery, equipment or other facilities, 
 constructed, installed or acquired by the taxpayer on 
 or after April 6, 1917, for the production of articles con- 
 tributing to the prosecution of the present war; and 
 when so resulting means the excess of the deductions 
 allowed by law (excluding in the case of corporations 
 amounts allowed as a deduction under paragraph (6) 
 of subdivision (a) of section 234) over the sum of the 
 gross income plus any interest received free from taxation 
 both under this title and under Title III. 
 ncf^S" \xie- ('"'^ ^^ ^^^^ ^^^ taxable year beginning after October 31, 
 terminatiin o f 1918, and ending prior to January 1, 1920, it appears 
 **''■ upon the production of evidence satisfactory to the Com- 
 
 missioner that any taxpayer has sustained a net loss, 
 the amount of such net loss shall under regulations pre- 
 scribed by the Commissioner with the approval of the 
 Secretary be deducted from the net income of tlie tax- 
 payer foft/^MeW9^?(%s£^ble year; and the taxes 
 imposed by this liue and oy T itle III lor such preceding 
 
INCOME TAXES. 477 
 
 taxable year shall be redetermined accordingly. Any 
 amount found to be due to the taxpayer upon the basis 
 of such redetermination shall be credited or refunded f^^i"'^^* °' "' 
 to the taxpayer in accordance with the provisions of 
 section 252. If such net loss is in excess of the net income 
 for such preceding taxable year, the amount of such 
 excess shall under regulations prescribed by the Com- 
 missioner with the approval of the Secretary be allowed succeeding" tax- 
 as a deduction in computing the net income for the sue- able year. 
 ceeding taxable year. 
 
 (c)Th6 benefit of this section shall be allowed to the be™"ciade/ of 
 members of a partnership and the beneficiaries of an estate or trust. 
 estate or trust under regulations prescribed by the Com- 
 missioner with the approval of the Secretary. 
 
 Sec. 205. (a) That if a taxpayer makes return for '^ y,- flT^ ^il^r^t 
 fiscal year beginning in 1917 and ending in 1918, his tax rates. 
 under this title for the first taxable year shall be the sum inl" ™'''"^ '" 
 of : (1) the same proportion of a tax for the entire period 
 computed under Title I of the Revenue Act of 1916 as 
 amended by the Revenue Act of 1917 and under Title I of 
 the Revenue Act of 1917, which the portion of such 
 period falling within the calendar year 1917 is of the 
 entire period, and (2) the same proportion of a tax for 
 the entire period computed under this title at the rates 
 for the calendar year 1918 which the portion of such 
 period falling within the calendar year 1918 is of the 
 entire period: Provided, That in the case of a personal 
 service corporation the amount to be paid shall be only 
 that specified in clause (1). 
 
 Any amount heretofore or hereafter paid on account of 
 the tax imposed for such fiscal year by Title I of the 
 Revenue Act of 1916 as amended by the Revenue Act of 
 1917, and by Title I of the Revenue Act of 1917, shall be 
 credited towards the payment of the tax imposed for 
 such fiscal year by this act, and if the amount so paid 
 exceeds the amount of such tax imposed by this act, or, 
 in the case of a personal service corporation, the amount 
 specified in clause (1), the excess shall be credited or 
 refunded in accordance with the provisions of section 
 252. 
 
 (b) If a taxpayer makes a return for a fiscal year be- igjl^'' ^"'''"s '° 
 ginning in 1918 and ending in 1919, the tax under this 
 title for such fiscal year shall be the sum of: (1) the same 
 proportion of a tax for the entire period computed under 
 this title at the rates specified for the calendar year 1918 
 which the portion of such period falling within the cal- 
 endar year 1918 is of the entire period, and (2) the same 
 proportion of a tax for the entire period computed under 
 this title at the rates specified for the calendar year 1919 
 which the portion of such period falling within the cal- 
 endar year 1919 is of the entire period. 
 
 ; (c) If a fiscal year of a partnership begins in 1917 Partnerships. 
 and ends in 1918 or begins in 1918 and ends in 1919, then 
 notwithstanding the p©J9rM©0f*J><fMft}?idki#fen (b) of sec- 
 tion 218, (1) the rates for the calendar year during which 
 
478 lUCOME TAXES. 
 
 such fiscal year begins shall apply to an amount of each 
 partner's share of such partnership net income (de- 
 termined under the law applicable to such year) equal 
 to the proijortion which the part of such fiscal year fall- 
 ing within such calendar year bears to the full fiscal year, 
 and (2) the rates for the calendar year during which 
 such fiscal year ends shall apply to an amount of each 
 partner's share of such partnership net income (deter- 
 mined under the law applicable to such calendar year) 
 equal to the proportion which the part of such fiscal year 
 falling within such calendar year bears to the full fiscal 
 year: Provided^ That in the case of a personal service 
 corporation with respect to a fiscal year beginning in 
 1917 and ending in 1918, the amount specified in clause: 
 (1) shall not be subject to normal tax. 
 p a r t s of in- Sec. 206. That whenever parts of a taxpayer's income 
 Sto fOT^ d'mer" ^^® subject to ratcs for different calendar years, the part 
 ent years. subjcct to the rates for the most recent calendar year 
 
 shall be placed in the lower brackets of the rate schedule 
 provided in this title, the part subject to the rates for 
 the next preceding calendar year shall be placed in the 
 next higher brackets of the rate schedule applicable to 
 that year, and so on untU the entire net income has been 
 accounted for. In determining the income, any deduc- 
 tions, exemptions or credits of a kind not plainly and 
 properly chargeable against the income taxable at rates 
 for a preceding year shall first be applied against the 
 income subject to rates for the most recent calendar year; 
 but any balance thereof shall be applied against the in- 
 come subject to the rates of the next preceding year or 
 years until fully allowed. 
 
 Part II. — IxoivmuALs. 
 
 Normal tax. Sec. 210. That, in lieu of the taxes imposed by sub- 
 
 division (a) of section 1 of the Revenue Act of 1916 and 
 by section 1 of the Revenue Act of 1917, there shall be 
 levied, collected, and paid for each taxable year upon 
 the net income of every individual a normal tax at the 
 following rates : 
 
 Bate for 1918. (a) For the calendar year 1918, 12 per centum of the 
 amount of the net income in excess of the credits pro- 
 vided in section 216: Provided, That in the case of a 
 citizen or resident of the United States the rate upon the 
 first $4,000 of such excess amount shall be 6 per centum ; 
 
 Rate for 1919 (b) For each calendar year thereafter, 8 per centum 
 and thereafter. q£ ^^ amount of the net incomc in excess of the credits 
 provided in section 216: Provided, That in the case of 
 a citizen or resident of the United States the rate upon 
 the first $4,000 of such excess amount shall be 4 per 
 centum. 
 
 Surtax. Sec. 211. (a) That, in lieu of the taxes imposed by 
 
 subdivision (b) of section 1 of the Revenue Act of 1916 
 and by se^p/g^|,jtl^,.Egv§^^ Act of 1917, but in ad- 
 
INCOME TAXES. 
 
 479 
 
 dition to the normal tax imposed by section 210 of this 
 Act, there shall be levied, collected, and paid for each 
 taxable year upon the net income of every individual, 
 a surtax equal to the sum of the following : 
 
 1 per centum of the amount by which the net income 
 exceeds $5,000 and does not exceed $6,000 ; 
 
 2 per centum of the amount by which the net income 
 exceeds $6,000 and does not exceed $8,000 ; 
 
 3 per centum of the amount by which the net income 
 exceeds $8,000 and does not exceed $10,000; 
 
 4 per centum of the amount by which the net income 
 exceeds $10,000 and does not exceed $12,000; 
 
 5 per centum of the amount by which the net income 
 exceeds $12,000 and does not exceed $14,000; 
 
 6 per centum of the amount bj' which the net income 
 exceeds $14,000 and does not exceed $16,000; 
 
 7 per centum of the amount by which the net income 
 exceeds $16,000 and does not exceed $18,000; 
 
 8 per centum of the amount by which the net income 
 exceeds $18,000 and does not exceed $20,000 ; 
 
 9 per centum of the amount bj' which the net income 
 exceeds $20,000 and does not exceed $22,000 ; 
 
 10 per centum of the amount by which the net income 
 exceeds $22,000 and does not exceed $24,000 ; 
 
 11 per centum of the amount by which the net income 
 exceeds $24,000 and does not exceed $26,000; 
 
 12 per centum of the amount by which the net income 
 exceeds $26,000 and does not exceed $28,000; 
 
 13 per centum of the amount by which the net income 
 exceeds $28,000 and does not exceed $30,000-; 
 
 14 per centum of the amount by which the net income 
 exceeds $30,000 and does not exceed $32,000; 
 
 15 per centum of the amount by which the net income 
 exceeds $32,000 and does not exceed $34,000 ; 
 
 16 per centum of the amount by which the net income 
 exceeds •$34,000 and does not exceed $36,000; 
 
 17 per centum of the amount by which the net income 
 exceeds $36,000 and does not exceed $38,000 ; 
 
 18 per centum of the amount by which the net income 
 exceeds $38,000 and does not exceed $40,000; 
 
 19 per centum of the amount by which the net income 
 exceeds $40,000 and does not exceed $42,000 ; 
 
 20 per centum of the amount by which the net income 
 exceeds $42,000 and does not exceed $44,000; 
 
 21 per centum of the amount by which the net income 
 exceeds $44,000 and does not exceed $46,000; 
 
 22 per centum of the amount by which the net income 
 exceeds $46,000 and does not exceed $48,000; 
 
 23 per centum of the amount by which the net income 
 exceeds $48,000 and does not exceed $50,000; 
 
 24 per centum of the amount by which the net income 
 exceeds $50,000 and does not exceed $52,000 ; 
 
 25 per centum of the amount by which the net income 
 exceeSs $52,000 and d<^^^hSW^^^^^ft^ 
 
,480 IJTCOME TAXES. 
 
 26 per centum of the amount by which, the net income 
 exceeds $54,000 and does not exceed $56,000 ; 
 '; 27 per centum of the amount by which the net income 
 exceeds $56,000 and does not exceed $58,000 ; 
 
 28 per centum of tlie amovmt by which the net income 
 exceeds $58,000 and does not exceed $60,000 ; 
 
 29 per centum of the amount by which the net income 
 exceeds $60,000 and does not exceed $62,000; 
 
 30 per centum of the amount by which the net income 
 exceeds $62,000 and does not exceed $64,000; 
 
 31 per centum of the amount by which the net income 
 exceeds $64,000 and does not exceed $66,000; 
 
 32 per centum of the amount by which the net income 
 exceeds $66,000 and does not exceed $68,000; 
 
 33 per centum of the amount by which the net income 
 exceeds $68,000 and does not exceed $70,000; 
 
 34 per centum of the amount by which the net income 
 exceeds $70,000 and does not exceed $72,000; 
 
 35 per centum of the amount by which the net income 
 exceeds $72,000 and does not exceed $74,000 ; 
 
 36 per centum of the amount by which the net income 
 exceeds $74,000 and does not exceed $76,000 ; 
 
 37 per centum of the amount by which the net income 
 exceeds $76,000 and does not exceed $78,000 ; 
 
 38 per centum of the amount by which the net income 
 exceeds $78,000 and does not exceed $80,000; 
 
 39 per centum of the amount by which the net income 
 exceeds $80,000 and does not exceed $82,000; 
 
 40 per centum of the amount by which the net income 
 exceeds $82,000 and does not exceed $84,000 ; 
 
 41 per centum of the amount by which tlie net income 
 exceeds $84,000 and does not exceed $86,000 ; 
 
 42 per centum of the amount by which the net income 
 exceeds $86,000 and does not exceed $88,000 ; 
 
 43 per centum of the amount* by which the net income 
 exceeds $88,000 and does not exceed $90,000; 
 
 44 per centum of the amount by which the net income 
 exceeds $90,000 and does not exceed $92,000; 
 
 45 per centum of the amount by which the net income 
 exceeds $92,000 and does not exceed $94,000; 
 
 46 per centum of the amount by which tne net income 
 exceeds $94,000 and does not exceed $96,000 ; 
 
 47 per centum of the amount by which the net income 
 exceeds $96,000 and does not exceed $98,000 ; 
 
 48 per centum of the amount by which the net income 
 exceeds $98,000 and does not exceed $100,000 ; 
 
 52 per centum of the amount by which the net income 
 exceeds $100,000 and does not exceed $150,000 ; 
 
 56 per centum of the amount by which the net income 
 exceeds $150,000 and does not exceed $200,000; 
 
 60 per centum of the amount by which the net income 
 exceeds $200,000 and does not exceed $300,000 ; 
 
 63 per centum of the amount by which the net income 
 exceeds $300,000 and does not exceed $500,000 ; 
 Digitized by Microsoft® 
 
INCOME TAXES. 481 
 
 64 per centum of the amount by -which the net income 
 exceeds $500,000 and does not exceed $1,000,000 ; 
 
 65 per centum of the amount by wliich tlie net income 
 exceeds $1,000,000. ' 
 
 (b) In the case of a bona fide sale of mines, oil or gas ^jf^','^ °l "',"««- 
 wells, or any interest therein, where the principal value of ' "' ^"^ ^'° '' 
 the property has been demonstrated by jprospecting or 
 exploration and discovery work done by the taxpayer, the 
 portion of the tax imposed by this section attributable 
 to such sale shall not exceed 20 per centum of the selling 
 price of such property or interest* 
 
 Sec. 212. (a) That in the case of an individual +he ^^^^Nj^t i"™"' 
 term " net income " means the gross income. as"defined in 
 section 213, less the deductions allowed by section 214. 
 
 (b) The net income shall be computed upon the basis nJ^S^g'"""' 
 of the taxpayer's annual accounting period (fiscal year or 
 calendar year, as the case may be) in accordance with the 
 method of accounting regularly employed in keeping the 
 books of such taxpayer ; but if no such method of account- 
 ing has been so employed, or if the method employed 
 does not clearly reflect the income, the computation shall 
 be made upon such basis and in such manner as in the 
 opinion of the Commissioner does clearly reflect the in- 
 come. If the taxpayer's annual accounting period is 
 other than a fiscal year as defined in section SOO- or if the 
 taxpayer has no annual accounting period or does not 
 keep books, the net income shall be computed on the basis 
 of the calendar year. 
 
 If a taxpayer changes his accounting period from fiscal 
 year to calendar year, from calendar year to fiscal jeai", 
 or from one fiscal year to another, the net income shall, 
 with the approval of the Commissioner, be computed on 
 the basis of such new accounting period, subject to the 
 provisions of section 226. ^ ' ,', 
 
 Article 23, Regulations 45, as to bases of computation, 
 modified. (T. D. 2S73.) 
 
 Seg. 213. That for the purposes of this title (except as ^^f^°l^ '"'^>"°' 
 otherwise provided in section 233) the term " gross in- 
 come " — 
 
 (a) Includes gains, profits, and income derived from 
 salaries, wages, or comjjensation for personal service (in- 
 cluding in the case of the President of the United States, 
 the judges of the Supreme and inferior courts of the 
 United States, and all other officers and employees, 
 whether elected or appointed, of the United States, 
 Alaska, Hawaii, or any political subdivision thereof, or 
 the District of Columbia, the compensation received as 
 such), of whatever kind and in whatever form paid, or 
 from professions, vocations, trades, businesses, com- 
 merce, or sales, or dealings in property, whether real or 
 personal, growing out of the ownership or use of or in- 
 terest in such property; also from interest, rent, divi- 
 
 140184°— 20 31 
 
 Digitized by Microsoft® 
 
4S2 INCOME TAXES. 
 
 dends, secui'ities, or tke transaction of any business car- 
 ried on for gain or profit, or gains or profits and income 
 derived from any souiee whatever. The amount of all 
 such items shall be included in the gross income for the 
 taxable year in which received by the taxpayer, unless, 
 under jnethods of accounting permitted under subdivi- 
 sion (b) of section 212, any such amounts are to be prop- 
 erly accounted for as of a different period ; but 
 
 State offlr;ialg a'nd employees not liable to tax on salaries 
 iind wages. (T. D. 2843.) 
 
 Lump sum paid for services for period of years is Income 
 for year in which received. (Jackson v. Smietanka, T. D. 
 2960.) 
 
 (b) Does not include the following items, which shall 
 be exempt from taxation under this title : 
 Proceeds of life (1) The proceeds of life insurance policies paid upon 
 ^nsurance p ^j^^ death of the iusured to individual beneficiaries or to 
 the estate of the insured ; 
 A m u n t re- (2) The amouut received hy the insured as a return of 
 ofpremiums!'"™ premium or premiums paid by him under life insurance, 
 endowment, or annuity contracts, either during the term 
 or at the maturity of the term mentioned in the contract 
 or upon surrender of the contract ; 
 Value of prop- (3) The value of property acquired by gift, bequest, 
 
 erty acquired by,^.' ■, j/iili- ji J o i ^,' 
 
 gift, bequest, etc. dcvise, or desceiit (but the income from such property 
 shall be included in gi-oss income) ; 
 interes^t^ upon (4) Interest upon (a) the obligations of a State, Ter- 
 stat?! 'Territory, ritory, or auy political subdivision thereof, or the Dis- 
 coiumbia^'Fed- trict of Coluiubia ; or (b) securities issued under the 
 evai Farm Loan provisious of the Federal Farm Loan Act of July 17, 
 Snce'^corpoia- 191fi ; or (c) the obligations of the United States or its 
 tion bonds. possesioiis ; or (d) bonds issued by the War Finance Cor- 
 poration: Provided, That every person owning any of 
 the obligations, securities or bonds enumerated in clauses 
 (a), (b), (c) and (d) shall, in the return required by 
 this title, submit a statement showing the number and 
 amount of such obligations, securities and bonds owned 
 by him and the income received therefrom, in such form 
 and with suck information as the Commissioner may re- 
 quire. In the case of obligations of the United States 
 issued after September 1, 1917, and in the case of bonds 
 issued by the War Finance Corporation, the interest 
 shall be exempt only if and to the extent provided in the 
 respective Acts authorizing the issue thereof as amended 
 and supplemented, and shall be excluded from gross in- 
 come only if and to the extent it is wholly exempt irom 
 taxation to the taxpayer both under this title and under 
 Title III; 
 Income of for- (5) The iucome of foreign governments received from 
 fro^m^'in- investments in the United States in stocks, bonds, or 
 
 niGiits from in- JJJ > csunciit*) iii nic uiijteu oiaies in stfin;±4.s, U<JIHA», 
 
 M'stments in " * ^ 
 
 United State; 
 
 Ncstments in the other dometstic securities, owned by such foreign govem- 
 
 meiits, or from interest on deposits in banks in the United 
 States of moneys foelon^ng to sucli foreign governments, 
 or from any .other- source witiiin the United States; 
 
state, etc. 
 
 INCOME TAXES. 483 
 
 (6) Amounts received, through accident or health in- ceiveT""thioJh 
 surance or under workmen's compensation acts, as com- accident or 
 pensation for personal injuries or sickness, plus the or'midir™work! 
 amount of any damages received whether by suit or ^^U'-^^J"™'^"^*- 
 agreement on account of such injuries or sickness; 
 
 (7) Income derived from any public utility or the ex- income from 
 ercise of any essential governmental function and ac- cming ''*to''^a*ny 
 ci-uing to any State, Territory, or the District of Colum- " 
 bia, or any political subdivision of a State or Territory, 
 or income accruing to the government of any possession of 
 the United States, or any political subdivision thereof. 
 
 Whenever any State, Territory, or the District of Co- 
 lumbia, or any political subdivision of a State or Ter- 
 ritory, prior to September 8, 1916, entered in good faith 
 into a contract with any person, the object and purpose 
 of which is to acquire, construct, operate, or maintain a 
 public utility, no tax shall be levied under the provisions 
 of this title upon the income derived from the operation 
 of such public utility, so far as the payment thereof will 
 impose a loss or burden upon such State, Territory, Dis- 
 trict of Columbia, or political subdivision; but this pro- 
 vision is not intended to confer upon such person any 
 financial gain or exemption or to relieve such person 
 from the payment of a tax as provided for in this title 
 upon the part or portion of such income to which such 
 person is entitled under such contract ; 
 
 (8) So much of the amount received during the pres- _ 
 ent war by a person in the military or naval forces of o"- 
 the United States as salary or compensation in any form 
 from the United States for active services in such forces, 
 
 as does not exceed $3,500. 
 
 Liberty bonds and Victory notes. (T. Ds. 2836, 2857.) 
 Interest on Victory notes. (T. D. 2865.) 
 
 (c) In the case of nonresident alien individuals, gross auL^i'ndlvidMi's! 
 income includes only the gross income from sources with- 
 in the United States, including interest on bonds, notes, 
 or other interest-bearing obligations of residents, cor- 
 porate or otherwise, dividends from resident corpora- 
 tions, and including all amounts received (although paid 
 under a contract for the sale of goods or otherwise) repre- 
 senting profits on the manufacture and disposition of 
 goods within the United States. 
 
 Determination of residence. (T. D. 2794.) 
 
 Wages of nonresident alien seamen derived from source.? 
 
 within United States ; article 92a added to Regulations No. 
 
 45. (T. D. 2869.) 
 
 Sec. 214. (a) That in computing net income there shall Deductions. 
 be allowed as deductions : 
 
 (1) All the ordinary and necessary expenses paid or. '^'=p*°="- 
 incurred during the taxable year in carrying on any trade 
 or business, including a reasonable allowance for salaries 
 or other compensation for personal services actually 
 
 Digitized by Microsoft® 
 
 Salaries o f 
 soldiers and sail- 
 
484 INCOME TAXES. 
 
 rendered, and including rentals or other payments re- 
 quired to be made as a condition to the continued use or 
 possession, for purposes of the trade or business, of prop- 
 erty to which the taxpayer has not taken or is not taking 
 title or in which he has no equity ; 
 
 or accraed. '"''^ i^) ^^ interest paid or accrued within the taxable year 
 on indebtedness, except on indebtedness incurred or con- 
 tinued to purchase or carry obligations or securities 
 (other than obligations of the United States issued after 
 September 24, 1917), the interest upon which is wholly 
 exempt from taxation under this title as income to the 
 taxpayer, or, in the case of a nonresident alien individual, 
 the proportion of such interest which the amount of his 
 gross income from sources within the United States 
 bekrs to the amount of his gross income from all sources 
 within and without the United States ; 
 
 accSed! *'*"' "' (3) Taxcs paid or accrued within the taxable year im- 
 posed (a) by the authority of the United States, except 
 income, war-profits and excess-profits taxes; or (b) by 
 the authority of any of its possessions, except the amount 
 of income, war-profits and excess-profits taxes allowed 
 as a credit under section 222; or (c) by the authority of 
 any State or Territory, or any county, school district, 
 municipality,, or other taxing subdivision of any State or 
 Territory, not including those assessed against local bene- 
 fits of a kind tending to increase the value of the property 
 assessed; or (d) in the case of a citizen or resident of the 
 United States, by the authority of any foreign country, 
 except the amount of income, war-profits and excess- 
 profits taxes allowed as a credit under section 222; or (e) 
 in the case of a nonresident alien individual, by the 
 authority of any foreign country (except income, war- 
 profits and excess-profits taxes, and taxes assessed against 
 local benefits of a kind tending to increase the value of 
 the property assessed), upon property or business; 
 
 Article 133, Regulations No. 45, relating to taxes for local 
 assessments, amended. (T. D. 2937.) 
 
 (4) Losses sustained during the taxable year and not 
 compensated for by insurance or otherwise, if incurred 
 in trade or business ; 
 
 Article 141, Regulations No. 45, amended. (T. D. 2972.) 
 
 (5) Losses sustained during the taxable year and not 
 compensated for by insurance or otherwise, if incurred 
 in any transaction entered into for profit, though not con- 
 nected with the trade or business; but in the case of a 
 nonresident alien individual only as to such transacfcons 
 within the United States ; 
 
 (6) Losses sustained during the taxable year of prop- 
 erty not connected with the trade or business (but in the 
 case of a nonresident alien individual only property with- 
 in the United States) if arising from fires, storms, ship- 
 wreck, or other casualty, or from theft, and if not com- 
 pensated f6^j2$fibfiya4%©g«fgferwise; 
 
 Losses. 
 
 Same. 
 
 Same. 
 
INCOME TAXES. 485 
 
 (7) Debts ascertained to be worthless and charged off ''»<^ '^*''*=- 
 within the taxable year ; 
 
 (8) A reasonable allowance for the exhaustion, wear ^^f^.'^'^^^^^'^^j"; 
 and tear of property used in the trade or business, inchid- obsolescence. 
 ing a reasonable allowance for obsolescence ; 
 
 Article 163, Regulations No. 4.o, relating to depreciation 
 of Intangible property, modified. (T. D. 2929.) 
 
 (9) In the case of buildings, machinery, equipment, or ot^^ott^it^^iTr 
 other facilities, constructed, erected, installed, or ac- facilities, etc. 
 quired, on or after April 6, 1917, for the production of 
 
 articles contributing to the prosecution of the present 
 war, and in the case of vessels constructed or acquired 
 on or after such date for the transportation of articles or 
 men contributing to the prosecution of the present war, 
 there shall be allowed a reasonable deduction for the 
 amortization of such part of the cost of such facilities or 
 vessels as has been borne by the taxpayer, butiiot again 
 including any amount otherwise allowed under this title 
 or previous Acts of Congress as a deduction in computing 
 net income. At any time within three years after the 
 termination of the present war, the Commissioner may, 
 and at the request of the taxpayer shall, reexamine the 
 return, and if he then finds as a result of an appraisal 
 or from other evidence that the deduction originally 
 allowed was incorrect, the taxes imposed by this title and 
 by Title III for the year or years affected shall be rede- 
 termined; and the amount of tax due upon such redeter- 
 mination, if any, shall be paid upon notice and demand 
 by the collector, or the amount of tax overpaid, if any, 
 shall be credited or refunded. to the taxpayer in accord- 
 ance with the provisions of section 252 ; 
 
 (10) In the case of mines, oil and gas wells, other Depletion and 
 natural deposits, and timber, a reasonable allowance for case'"of '"mines, 
 depletion and for depreciation of improvements, accord- *™''"' ''°- 
 ing to the peculiar conditions in each case, based upon 
 
 cost including cost of development not otherwise de- 
 ducted: Provided, That in the case of such properties 
 acquired prior to March 1, 1913, the fair market value of 
 the property (or the taxpayer's interest therein) on that 
 date shall be taken in lieu of cost up to that date : Pro- 
 vided furth-er, That in the case of mines, oil and gas- 
 wells, discovered by the taxpayer, on or after March 1, 
 1913, and not acquired as the result of purchase of a 
 proven tract or lease, where the fair market value of the 
 property is materially disproportionate to the cost, the 
 depletion allowance shall be based upon the fair market 
 value of the property at the date of the discovery, or 
 within thirty days thereafter; such reasonable allowance 
 in all the above cases to be made under rules and regu- 
 lations to be prescribed by the Commissioner with the 
 approval of the Secretary. In the case of lease's tlie 
 
 Digitized by Microsoft® 
 
486 
 
 INCOME TAXES. 
 
 deductions allowed by tkis paiiagrapll shall be equitably 
 apportioned between the lessor and lessee ; 
 
 Articles 234 and 235, relating to deta^iination of fair 
 market value and quantity of timteer, added to Begulations 
 No. 45. (T. B. 2916.) 
 
 Regulations No. 45 amended by substituting for articles 
 220 and 221, dealing with depletion after discovery of oil 
 and gas weUs, articles 220, 220<a), and 221. <T. D. 2956.) 
 
 or'^gHta to^hari^ (11) Contributions or gifts made within the taxable 
 table, «duca- year to corporations organized and operated exclusively 
 porTti'ont''" °"' for Teligious, charitablej scientific, or educational pur- 
 poses, or for the prevention of cruelty to children or ani- 
 mals, no part of the net earnings of which inures to the 
 benefit of any private stockholder or individual, or to 
 the special fund for vocational rehabilitation authorized 
 by section 7 of the Vocational Rehabilitation Act^ to an 
 amount not in excess of 15 per centum of the taxpayer's 
 net income as computed without the benefit of this para- 
 graph. Such contributions or gifts shall be allowable as 
 deductions only if verified under rules and regulations 
 prescribed by the Commissi oner, with the approval of 
 the Secretary. In the case of a nonresident alien indi- 
 vidual this deduction shall be allowed only as to contri- 
 butions or gifts made to domestic corporations, or to such 
 vocational rehabilitation fund; 
 
 Article 251. Kegulations No. 45, relating to charitable 
 contributions, amended. (T. Ds. 2966, 2977.) 
 
 aba^tiiSent ^°^ (12) (a) At the time of filing return for the taxable 
 year 1918 a taxpayer may file a claim in abatement based 
 on the fact that he has sustained a substantial loss 
 (whether or not actually realized by sale or other^ dispo- 
 sition) resulting from any material reduction (not due 
 to temporary fluctuation) of tlie value of the inventory 
 for such taxable year, or from the actual payment after 
 the close of such taxable year of rebates in pursuance 
 of contracts entered into during such year upon sales 
 made during such year. In such case payment of the 
 amount of the tax covered by such claim shall not be 
 required until the claim is decided, but the taxpayer shall 
 accompany his claim with a bond in double the amount 
 of the tax covered by the claim, with sureties satisfactory 
 to the Commissioner, conditioned for the payment of any 
 part of such tax found to be due, with interest. If any 
 part of such claim is disallowed then the remainder of 
 the tax due shall on notice and demand by the collector 
 be paid by the taxpayer with interest at the rate cf 1 
 per centum per month from the tiriie the tax would have 
 been due had no such claim been filed. If it is shown 
 to the satisfaction of the Commissij^-'^r that such sub- 
 stantial loss has been stistained, then in computing the 
 tax imposed by this title the amount of such loss shall 
 be deducted from the net income, (b) If no such claim 
 is filed, but it is shown to the satisfaction of the Com- 
 missioner §l§lfi^Tmi^^smU^ year 1919 the taxpayer 
 has sustainea a substantial loss of the character above 
 
INCOME TAXES. 487 ■ 
 
 described then the amount of such loss shall be deducted 
 from the net income for the taxable year 1918 and the J 
 tax imposed by this title for such year shall be rede- 
 termined accordingly. Any amount found to be due to , 
 the taxpayer upon the basis of such redetermination 
 shall be credited or refunded to the taxpayer in accordance 
 "with the provisions of section 252. 
 
 Cost of war facilities which may be amortized ; paragrapli 
 3, article 184, Regulations No. 45, amended. (T. D. 2859.) 
 Instructions as to bonds. <T. D. 2925.) 
 
 (b) In the case of a nonresident alien individual the Nonresident 
 deductions allowed in paragraphs (1), (4), <7), (8), (9)/"=" in-uviduais. 
 (10), and (12), and clause (e) of paragraph (3), of sub- 
 division "(a) shall be allowed only if and to the extent 
 that they are connected with income arising from a source 
 within the United States ; and the proper apportiomnent 
 and allocation of the deductions with respect to sources 
 of income within and without the United States shall be 
 determined under rules and regulations prescribed by the 
 Commissioner with the approval of the Secretary. 
 
 Returns by or for nonresident aliens. (T. Ds. 2811, 2815.) 
 
 Sec. 215. That in computing net income no deduction 
 shall in any case be allowed in respect of — 
 
 (a) Personal, living, or family expenses; 
 
 (b) Any amount paid ant for new buildings or for 
 permanent improvements or betterments made to increase 
 the value of any propertj^ or estate ; 
 
 (c) Any amount expended in restoring property or in 
 making good the exhaustion thereof for which an allow- 
 ance is or lias been made ; or 
 
 (d) Premiums paid on any life insurance policy cov- 
 ering the life of any officer or employee, or of any person 
 financially interested in any trade or business carried on <:i«s 
 by the taxpayer, when the taxpayer is directly or indi- 
 rectly a beneficiary under such policy. 
 
 Sec. 216.' That for the purpose of the normal tax only 
 there shall be allowed the following credits : 
 
 (a) The amount received as dividends from a corpo- Dividends from 
 ration which is taxable under this title upon its net in- tiw" ^°^'^°^^- 
 come, and amounts received as dividends from a per- 
 sonal service corporation out of earnings or profits upon 
 
 which income tax has been imposed by Act of Congress ; 
 
 (b) The amount received as interest upon obligations interest upon 
 of the United States and bonds issued by the War lulife^dTtltes or 
 Finance Corporation, which is included in gross income Jj°^^| °' c^^'orl- 
 under section 213 ; _ tion. 
 
 (c) In the case of a single person, a personal exemp- Personal ex- 
 tion of $1,000, or in the case of the head of a family or ^Tr'son." "' ''"^" 
 a married person living with husband or wife, a personal Personal ex- 
 exemption of $2,000. A husband and wife living to- o™'"f°ami'iy '''or 
 gether shall receive but one personal exemjjtion of $2,000 married person. 
 against their aggregate net income; and in case they 
 
 Digitized by Microsoft® 
 
 Items noi 
 ductible. 
 
 ; d€- 
 
 Personal, 
 
 etc, 
 
 expenses. 
 
 Amount paid 
 for new build- 
 
 ings or for per- 
 manent improve- 
 ments. 
 
 Amount paid 
 in restoring- prop- 
 erty. 
 
 Premiums 
 on certain 
 
 "St 
 
 insurance 
 
 poli- 
 
 cies. 
 
 
 Credits 
 lowed. 
 
 al- 
 
'488 
 
 IKGOME TAXES. 
 
 make separate returns, the personal exemption of $2,000 
 may be taken by either or divided between them ; 
 
 Dependents. (d) $200 for each person (other than husband or 
 
 wife) dependent upon and receiving his chief support 
 from the taxpayer, if such dependent person is under 
 eighteen years of age or is incapable of self-support 
 because mentally or physically defective. 
 
 Konresident (e) In the casc of a nonresident alien individual who 
 
 alien individuals. . '.,. i«j_p j_ I'l- 
 
 IS a citizen or subject of a country which imposes an m- 
 come tax, the credits allowed in subdivisions (c) and (d) 
 shall be allowed only if such country allows a similar 
 credit to citizens of the United States not residing in such 
 country. 
 
 Personal exemption ; article 307, of Regulations No. 45 
 amended, (T. Ds. 2892, 2906, 2922, 2970.) 
 
 alien""— 'auow- ^^*^- ^^'^- That a nonrcsident alien individual shall re- 
 ance of deduo- ccive the benefit of the deductions and credits allowed in 
 tionB and cred- ^j^^-g j-jj^ ^^jy ^^ gj-^^ ^^ causing to be filed with the col-. 
 
 lector a true and accurate return of his total income re- 
 ceived from all sources corporate or otherwise in the 
 United States, in the manner prescribed by this title, in- 
 cluding therein all the information which the Commis- 
 sioner may deem necessary for the calculation of such de- 
 ductions and credits: Provided. That the benefit of the 
 credits allowed in subdivisions (c) and (d) of section 216 
 may, in the discretion of the Commissioner, and except 
 as otherwise provided in subdivision (e) of that section, 
 be received by filing a claim therefor with the withhold- 
 agent. In case of failure to file a return, the collector 
 shall collect the tax on such income, and all property be- 
 longing to such nonresident alien individual shall be 
 liable to distraint for the tax. 
 
 Personal exemption and dependents. (T. Ds. 2811, 2815.) 
 Determination of residence. (T. D. 2794.) 
 When alien seamen regarded as residents; article 312a 
 added to Regulations No. 45. (T. D. 2869.) 
 
 Sec. 218. (a) That individuals carrying on business in 
 Partnerships, partnership shall be liable for income tax only in their 
 individual capacity. There shall be included in comput- 
 computation of ing the net income of each partner his distributive share, 
 whether distributed or not, of the net income of the part- 
 nership for the taxable year, or, if his net income for such 
 taxable year is computed upon the basis of a period dif- 
 ferent from that upon the basis of which the net income 
 of the partnership is computed, then his distributive 
 share of the net income of the partnership for anj' ac- 
 counting period of the partnership ending within the 
 fiscal or calendar year upon the basis of which the part- 
 ner's net income is computed. 
 
 The partner shall, for the purpose of the normal tax, 
 
 Credits. be allowed as credits, in addition to the credits allowed 
 
 to him under section 216, his proportionate share of such 
 
 Digitized by Microsoft® 
 
Rate of lax. 
 
 INCOME TAXES. 489 
 
 amoimts specified in subdivisions (a) and (b) of section 
 216 as are received by the partnership. 
 
 Ttixabilitj' of income in shape of cUvidends on stock in 
 corporation taxable on net income, income-tax law of 1913. 
 (United States v. Ooulby, 251 Fed., 582; T. D. 2858.) 
 
 (b) If a fiscal year of a partnership ends during a cal- 
 endar year for ■which the rates of tax differ from those 
 for the preceding calendar year, then (1) the r'ates for 
 such preceding calendar year shall apply to an amount 
 of each partner's share of such partnership net income 
 equal to the proportion which the part of such fiscal year 
 falling within siich calendar year bears to the full fiscal 
 year, and (2) the rates for the calendar year during which 
 such fiscal year ends shall apply to the remainder. 
 
 (c) In the case of an indi^^idual member of a partner- credits of ex- 
 ship which makes return for a fiscal year beginning in "jo^^ p™"''* t"^- 
 1917 and ending in 1918, his proportionate share of any 
 excess-profits tax imposed upon the partnership under 
 
 the Revenue Act of 1917 with respect to that part of 
 such fiscal year falling in 1917, shall, for the purpose 
 of determining the tax imposed by this title, be credited 
 against that portion of the net income embraced in his 
 personal return for the taxable year 1918 to which the 
 rates for 1917 apply. 
 
 (d) The net income of the partnership shall be com- computation of 
 puted in the same manner and on the same basis as pro- "^* income. 
 vided in section 212 except that the deduction provided 
 
 in pa,ragraph (11) of subdivision (a) of section 211 
 shall not be allowed. 
 
 (e) Personal service corporations shall not be subject personal serv- 
 to taxation under this title, but the individual stock- '" corporation. 
 holders thereof shall be taxed in the same manner as 
 
 the members of partnerships. All the provisions of this 
 title relating to partnerships and the members thereof 
 shall so far as practicable apply to personal service cor- 
 porations and the stockholders thereof: Provided^ That 
 for the purpose of this subdivision amounts distributed 
 by a personal service corporation during its taxable year 
 shall be accounted for by the distributees; and any por- 
 tion of the net income remaining undistributed at the 
 close of its taxable year shall be accounted for by the 
 stockholders of such corporation at the close of its tax- 
 able year in proportion to their respective shares. 
 
 Sec. 219. (a) That the tax imposed by sections 210 Estates and 
 and 211 shall apply to the income of estates or of any *™^*'- 
 kind of property held in trust, including — 
 
 (1) Income received by estates of deceased persons 
 during the period of admmistration or settlement of the 
 estate ; 
 
 (2) Income accumulated in trust for the benefit of 
 unborn or unascertained persons or persons with con- 
 tingent interests ; 
 
 Digitized by Microsoft® 
 
490 
 
 INCOME TAXES. 
 
 Fiduciary's re- 
 sponsibility for 
 returns. 
 
 Computation 
 of net income. 
 
 Deductions, 
 
 Imposition of 
 tax as to para- 
 graphs (1), (2), 
 or (3) of sub- 
 division (a). 
 
 Cases under 
 paragraph (4) of 
 subdivision (a), 
 and subdivision 
 
 (0). 
 
 (3) Income held for future distribution under the 
 terms of the will or trust ; and 
 
 (4) Income which is to be distributed to the bene- 
 ficiaries periodically, whether or not at regular intervals, 
 and the income collected by a guardian of an infant to 
 be held or distributed as the court may direct. 
 
 (b) The fiduciary shall be responsible for making the 
 return of income for the estate or trust for which he 
 acts. The net income of the estate or trust shall be com- 
 puted in the same manner and on the same basis as pro- 
 vided in section 212, except that there shall also be al- 
 lowed as a deduction (in lieu of the deduction authorized 
 by paragraph (11) of subdivision (a) of section 214) 
 any part of the gross income which, pursuant to the 
 terms of the will or deed creating the trust, is during the 
 taxable year paid to or permanently set aside for the 
 United States, any State, Territory, or any political sub- 
 division thereof, oi- the District of Columbia, or any cor- 
 poration organized and operated exclusively for religious, 
 charitable, scientific, or educational purposes, or for the 
 prevention of cruelty to children or animals, no part of 
 the net earnings of which inures to the benefit of any 
 private stockholder or individual; and in cases under 
 paragraph (4) of subdivision (a) of this section the fidu- 
 ciary shall include in the return a statement of each bene- 
 ficiary's distributive shai-e of such net income, whether 
 or not distributed before the close of tlie taxable year for 
 which the return is made. 
 
 (c) In cases under paragraph (1), (2), or (3) of sub- 
 division (a) the tax shall be imposed upon the net in- 
 come of the estate or trust and shall be paid by the fidu- 
 ciary, except that in determining the net income of the 
 estate of any deceased person during the period of ad- 
 ministration or settlement there may be deducted the 
 amount of any income properljr paid or credited to any 
 legatee, heir or other beneficiary. In such cases the 
 estate or trust shall, for the purpose of the normal tax, 
 be allowed the same credits as are allowed to single per- 
 sons under section 216. 
 
 (d) In cases under paragraph (4) of subdivision (a), 
 and in the case of any income of an estate during the 
 period of administration or settlement permitted by sub- 
 division (c) to be deducted from the net income upon 
 which tax is to be paid by the fiduciary, the tax shall not 
 be paid by the fiduciary, but there shall be included in 
 computing the net income of each beneficiary his dis- 
 tributive share, whether distributed or not, of the net in- 
 come of the estate or trust for the taxable year, or, if his 
 net income for such taxable year is computed upon the 
 basis of a peripd different from that upon the basis of 
 which the net income of the estate or trust is computed, 
 then his distributive share of the net income of the estate 
 or trust for any accounting period of such estate or trust 
 ending wi£jjp/|^ ^qi^c^s'g^^dar year upon the basis 
 
INCOME TAXES. 491 
 
 of which such beneficiary's net income is computed. In 
 such eases the beneficiary shall, for the purpose of the 
 normal tax, be allowed as credits in addition to the 
 credits allowed to him under section 216, his proportion- 
 ate share of such amounts specified in subdivisions (a) 
 and (b) of section 216 as are received by the estate or 
 trust. 
 
 Estates and trusts wbich cannot be treated as a unit; 
 article 347, Regulations No. 45. (T. D. 2987.) 
 
 Sec. 220. That if any corporation, however, created or Profits of eor- 
 organized, is formed or availed of for the purpose of pre- awe '"to stoc£ 
 venting the imposition of the surtax upon its stockholders ''°'<'^"- 
 or members through the medium of permitting its gains 
 and profits to accumulate instead of being divided or dis- 
 tributed, such corporation shall not be subject to the tax 
 imposed by section 230, but the stockholders or members 
 thereof shall be subject to taxation under this title in the 
 same manner as provided in subdivision (e) of section 
 218 in the case of stockholders of a personal service cor- 
 poration, except that the tax imposed by Title III shall 
 be deducted from the net income of the corporation be- 
 fore the computation of the proportionate share of each 
 stockholder or member. The fact that any corporation 
 is a mere holding company, or that the gains and profits 
 are permitted to accumulate beyond the reasonable needs 
 of the business, shall be prima facie evidence of a pur- 
 pose to escape the surtax ; but the fact that the gains and 
 profits are in any case permitted to accumulate and be- 
 come surplus shall not be construed as evidence of a pur- 
 ■j)ose to escape the tax in such case unless the Commis- 
 sioner certifies that in his opinion such accumulation is 
 unreasonable for the purposes of the business. When re- 
 quested by the Commissioner, or any collector, every cor- 
 poration shall forward to him a correct statement of such 
 gains and profits and the names and addresses of the in- 
 dividuals or shareholders who would be entitled to the 
 same if divided or distributed, and of the amounts that 
 would be payable to each. 
 
 Sec. 221. (a) That all individvxals, corporations and tax^afTource. " ' 
 partnerships, in whatever capacity acting, including 
 lessees or mortgagors of real or personal property, fidu- 
 ciaries, employers, and all officers and employees of the 
 United States, having the control, receipt, custody, dis- 
 posal, or payment of interest, rent, salaries, wages, 
 premiums, annuities, compensations, remunerations, 
 emoluments, or other fixed or determinable annual or 
 periodical gains, profits, and income, of any nonresident 
 alien individual (other than income received as dividends 
 from a corporation which is taxable under this title upon 
 its net income) shall (except in the cases provided for in 
 subdivision (b) and except as otherwise provided in regu- 
 lations prescribed by the Commissioner under section 
 217) deduct and withhold from such annual or periodical 
 gains, profits, and in(Qi0i^d^ MtBPistfft<^ per centum 
 
4^2 INCOME TAXES. 
 
 thereof: Provided, That the Commissioner may author- 
 ize such tax to be deducted and withheld from the in- 
 terest upon any securities the owners of which are not 
 known to the withholding agent. 
 obhgoragrMB^o (b) lu any case where bonds, mortgages, or deeds of 
 ol? hv^ imposed trust, Or Other similar obligations of a corporation con- 
 igee. ^^.^ ^ contract or provision by which the obligor agrees 
 to pay any portion of the tax imposed by this title upon 
 the obligee,, or to reimburse the obligee for any portion 
 of the tax, or to pay the interest without deduction for 
 any tax which the obligor may be required or permitted 
 to pay thereon or to retain therefrom under any law of 
 the United States, the obligor shall deduct and with- 
 hold a tax equal to 2 per centum of the interest upon such 
 bonds, mortgages, deeds of trust, or other obligations, 
 whether such interest is payable annually or at shorter 
 or longer periods and whether payable to a nonresident 
 alien indiridually or to an individual citizen or resident 
 of the United States or to a partnership : Provided, That 
 . the Commissioner may authorize such tax to be deducted 
 and withheld in the case of interest upon any such bonds, 
 mortgages, deeds of trust or other obligations, the owners 
 of which are not known to the withholding agent. Such 
 deduction and withholding shall not be required in the 
 case of a citizen or resident entitled to receive such in- 
 terest, if he files with the withholding agent on or before 
 February 1 a signed notice in writing claiming the bene- 
 fit of the credits provided in subdivisions (c) and (d) 
 of section 216 ; nor in the case of a nonresident alien in- 
 dividual if so provided for in regulations prescribed by 
 the Commissioner under section 217. 
 letu'rn'' a*nd™pa' i^^ Evcry individual, corporation, or partnership re- 
 tax, quired to deduct and withhold any tax under this section 
 shall make return thereof on or before March first of 
 each year and shall on or before June fifteenth pay the 
 tax to the official of the United States Government au- 
 indemnity. thorizcd to receive it. Every such individual, corpora- 
 tion, or partnership is hereby made liable for such tax 
 and is hereby indemnified against the claims and de- 
 mands of any individual, corporation, or partnership 
 for the amount of any payments made in accordance 
 with the provisions of this section. 
 •A^^i^ToiuIome. (^) Income upon which any tax is required to be with- 
 ' held at the source under this section shall be included in 
 the return of the recipient of such income, but any amount 
 of tax so withheld shall be credited against the amount 
 of income tax as computed in such return. 
 frcL'wtthhoidi^ (®) I* any tax required under this section to be de- 
 agent, ducted and withheld is paid by the recipient of the in- 
 come, it shall not be re-collected from the withholding 
 agent; nor in cases in which the tax is so paid shall any 
 penalty be imposed upon or collected from the recipient 
 of the income or the withholding agent for failure to 
 Digitized by Microsoft® 
 
INCOME TAXES. 49-3 
 
 return or p^ay the same, unless such failure was fraudulent 
 and for the purpose of evading payment. 
 
 Regulations No. 45 amended by adding new article 
 ^ (363a), relating to relief of domestic corporations which 
 have assumed payment of tax with respect to tax-free cov- 
 enant bonds owned by nonresident aliens who are entitled 
 to credits for personal exemption and dependents, but whose 
 -incomes from sources in United States do not exceed such 
 credits. (T. D. 2920.) 
 
 Revised form of ownership certificates. (T. D. 2923.) 
 
 Article 367, Regulations No. 45, relating to use of sub- 
 stitute certificates, amended. (T. D. 2967.) 
 
 Article 375, Regulations No. 45, relating to withholding 
 in case of enemies, amended. (T. D. 2969.) 
 
 Seg. 222. (a) That the tax computed under Part II of ^Jj^ "= "^ ' * '" 
 this title shall be credited with : 
 
 (1) In the case of a citizen of the United States, the p™to!'"and'' ex- 
 amount of any income, war-profits and excess-profits <:ess proats taxes 
 taxes paid during the taxable year to any foreign country, cointiy? °"^'^" 
 upon income derived from sources therein, or to any pos- 
 session of the United States ; and 
 
 (2) In the case of a resident of the United States, the po^s'^e^sio'n l°t 
 amount of any such taxes paid during the taxable year united states. 
 to any possession of the United States ; and 
 
 (3 ) In the case of an alien resident of the United State;^ *"<>° r^=iJ<^"te- 
 who is a citizen or subject of a foreign country, the amount 
 
 of any such taxes paid during the taxable year to such 
 country, upon income derived from sources therein, ,if 
 such counti*y, in imposing such taxes, allows a similar 
 credit to citizens of the United States residing in such 
 country; and 
 
 (4) In the case of any such individual who is a niem- ^ Partners or 
 
 T a , 1 . "^ 1 r» • i» , . 1- i beiiencianes o f 
 
 ber or a partnership or a beneficiary or an estate or trust, estate or tryst. 
 his proportionate share of such taxes of the partnership 
 or the estate or trust paid during the taxable year to a 
 foreign country or to any possession of the United States, 
 as the case may be. 
 
 (b) If accrued taxes when paid differ from the amounts {^/'if* a™ount 
 claimed as credits by the taxpayer, or if any tax paid is °' ^^'^ ^''^^ 
 refunded in whole or in part, the taxpayer shall notify 
 the Commissioner who shall redetermine the amount of 
 the tax due under Part II of this title for the yeai* or 
 years affected, and the amount of tax due upon such re- 
 determination, if any, shall be paid by the taxpayer upon 
 notice and demand by the collector, or the amount of tax 
 overpaid, if any, shall be credited or refunded to the tax- 
 payer in accordance with the provisions of section 252. 
 In the case of such a tax accrued but not paid, the Com- gi^^ " by '°tax- 
 missioner as a condition precedent to the allowance of payer. 
 this credit may require the taxpayer to give a bond with 
 sureties satisfactory tO' and to be approved by the Com- 
 missioner in such penal sum as the Commissioner may 
 require, conditioned for the payment by the taxpayer of 
 any amount of tax found due upon any such redetermina- 
 tion: and the bond herein, prescribed shall contain such 
 further conditions as tG^©^g»ifll^^teg9Mf require. 
 
494 
 
 INCOME TAXES. 
 
 Evidence. 
 
 Individual re- 
 turns. 
 
 Partnership re- 
 turns. 
 
 Fiduciary 
 turns. 
 
 (c) These credits shall be allowed only if the taxpayer 
 furnishes evidence satisfactory to the Commissioner 
 showing the amount of income derived from sources 
 within such foreign countrj' or such possession of the 
 United States, and all other information necessary 'for 
 the computation of such credits. 
 
 Sec. 223. That every individual having a net income 
 for the taxable year of $1,000 or over if single or if mar- 
 ried and not living with husband or wife, or of $2,000 or 
 over if married and living with husband or wife, shall 
 make under oath a return stating specifically the items of 
 his gross income and the deductions and credits allowed 
 by this title. If a husband and wife living together have 
 an aggregate net income of $2,000 or over, each shall make 
 such a return unless the income of each is included in a 
 single joint return. 
 
 If the taxpayer is vinable to make his own return, the 
 return shall be made by a duly authorized agent or by the 
 guardian or other person charged with the care of the 
 person o'* property of such taxpayer. 
 
 Article 406, Regulations No. 4.5, as to verification of re- 
 turns, amended. (T. D. 2951.) 
 
 Sec. 224. That every partnership shall make a return 
 for each taxable year, stating specifically the items of its 
 gross income and the deductions allowed by this title, and 
 shall include in the return the names and addresses of the 
 individuals who would be entitled to share in the net in- 
 come if distributed and the amount of the distributive 
 share of each individual. The return shall be sworn to 
 by any one of the partners. 
 
 Sec. 225. That every fiduciary (except receivers ap- 
 pointed by authority of law in possession of part only of 
 the property of an individual) shall make under oath a 
 return for the individual, estate or trust for which he 
 acts (1) if the net income of such individual is $1,000 or 
 over if single or if married and not living with husband 
 or wife, or $2,000 or over if married and living with hus- 
 band or wife, or (2) if the net income of such estate or 
 trust is $1,000 or over or if any beneficiary of such estate 
 or trust is a nonresident alien, stating specifically the 
 items of the gross income and the deductions and credits 
 allowed by this title. Under such regulations as the Com- 
 missioner with the approval of the Secretary may pre- 
 scribe, a return made bj^ one of two or more joint fidu- 
 ciaries and filed in the office of the collector of the dis- 
 trict where such fiduciary resides shall be a sufficient com- 
 pliance with the above requirement. The fiduciary shall 
 make oath that he has sufficient knowledge of the affairs 
 of such individual, estate or trust to enable him to make 
 the return, and that the same is, to the best of his knowl- 
 edge and belief , true and correct. 
 
 Fiduciaries required to make returns under this Act 
 shall be subject to all the provisions of this Act which 
 apply to iSmi^^M^. Microsoft® 
 
IKOOME TAXES. 495 
 
 Sec, 226. That if a taxpayer, with the approval of the ^^^^^'^"j^;;'' ""^^^^ 
 Commissioner, changes the basis of computing net income riod"char|ed. ^^' 
 from fiscal year to calendar year a separate return shall 
 be made for the period between the close of the last fiscal 
 year for which return was made and the following De- 
 cember thirty-first. If the change is from calendar year 
 to fiscal year, a separate return shall be made for the 
 period between the close of the last calendar year for 
 which return was made and the date designated as the 
 close of the fiscal year. If the change is from one fiscal 
 year to another fiscal year a separate return shall be 
 made for the period between the close of the former fiscal 
 year and the date designated as the close of the new fiscal 
 year. If a taxpayer making his first return for income 
 tax keeps his accounts on the basis of a fiscal year he shall 
 make a separate return for the period between the begin- 
 ning of the calendar year in which such fiscal year ends 
 and the end of such fiscal year. 
 
 In all of the above cases the net income shall be com- 
 puted on the basis of such period for, which separate 
 return is made, and the tax shall be paid thereon at the 
 rate for the calendar year in which such period is in- 
 cluded; and the credits provided in subdivisions (c) and 
 (d) of section 216 shall be reduced respectively to 
 amounts which bear the same ratio to the full credits 
 provided in such subdivisions as the number of months in 
 such period bears to twelve months. 
 
 Sec. 227. (a) That returns shall be made on or before ^.J^^^ ^°'^ ^^'"s 
 the fifteenth day of the third month following the close 
 of the fiscal year, or, if the return is made on the basis of 
 the calendar year, then the return shall be made on oi' 
 before the fifteenth day of March. The Commissioner Extension of 
 may grant a reasonable extension of time for filing re- '""''■ 
 turns whenever in his judgment good cause exists and 
 shall keep a record of every such extension and the rea- 
 son therefor. Except in the case of taxpayers who are 
 abroad, no such extension shall be for more than six 
 months. 
 
 Extension ot time as to persons abroad ; Regulations No. 
 45, article 445, amended-. (T. D. 2844.) 
 
 Article 443, Regulations No. 45, relating to extension of 
 time for filing returns by the collector, amended. (T. D. 
 2935.) 
 
 (b) Eeturns shall be made to the collector for the dis- ^J^^ ^°^ *""s 
 trict in which is located the legal residence or principal 
 place of business of the person making the return, or. if 
 he has no legal residence or principal place of business in 
 \he United States, then to the collector at Baltimore, 
 Maryland. 
 
 ' Sec. 228. That if the collector or deputy collector has i„^'"eto^nf ™™' 
 reason to believe that the amount of any income returned 
 is understated, he shall give due notice to the taxpayer 
 making the return to show cause why the amount of the 
 return should not be ^^^^e^as^^^^d^u|K.^3roof of the 
 
496 INCOME TAXES. 
 
 amount understated, may increase the same accordingly. 
 Such taxpayer may furnish sworn testimony to prove 
 any relevant facts and if dissatisfied with the decision of 
 the collector may appeal to the Commissioner for his de- 
 cision, under such rules of procedure as may be pre- 
 scribed by the Commissioner with the approval of the 
 Secretary. 
 
 Part III. — CorpobatioisS. 
 
 on^cOT^raUons!" Sec. 230. (a) That, in lieu of the taxes imposed by 
 section 10 of the Revenue Act of 1916, as amended by 
 the Revenue Act of 1917, and by section 4 of the Revenue 
 Act of 1917, there shall be levied, collected, and paid for 
 each taxable year upon the net income of every corpora- 
 tion a tax at the following rates : 
 
 (1) For the calendar year 1918, 12 per centum of the 
 amount of the net income in excess of the credits pro- 
 vided in section 236 ; and 
 
 (2) For each calendar year thereafter, 10 per centum 
 of such excess amount. 
 
 6ys?emr''unde? i^) ^or the'purposes of the Act approved March 21, 
 
 Federal control. 1918, entitled " An Act to provide for the operation of 
 transportation systems while under Federal control, for 
 the just compensation of their owners, and for other 
 purposes," five-sixths of the tax imposed by paragraph 
 (1) of subdivision (a) and four-fifths of the tax imposed 
 by paragraph (2) of subdivision (a) shall be treated 
 as levied by an Act in amendment of Title I of the Reve- 
 nue Act of 1917. 
 
 ofre'^i"''exmp"^ SbC. 231. That the following organizations shall be 
 
 tions. ^ exempt from taxation under this title — 
 
 tur5*""etc^'^'™r- (1) Labor, agricultural, or horticultural organizations ; 
 
 ganiitions.' (2) Mutual savings banks not having a capital stock 
 
 banks!"^' savings ygpreggj^tg^j ^y shares ; . . . 
 
 Fiaterraibene- (^) Fraternal beneficiary societies, orders, or associa- 
 
 fieiary societies, tious, (a) Operating Under the lodge system or for the 
 exclusive benefit of the members of a fraternity itself 
 operating imder the lodge system, and (b) providing for 
 the payment of life, sick, accident, or other benefits to 
 the members of such society, order, or association or 
 their dependents ; 
 Building and (4) Domestic building and loan associations and co- 
 
 tions" coopera- operative banks without capital stock organized and op- 
 
 tive banks. crated for mutual purposes and without profit ; 
 Cemetery com- (5) Cemctcry companies owned and operated exclu- 
 
 panieb. sively for the benefit of their members ; 
 
 charitabie/edu- (Q) Corporations organized and operated exclusively 
 
 oational, etc., ~ ^ ' T . ^ i •. i i • j.-n i j.- i 
 
 corporations. for religious, charitable, scientific, or educational pur- 
 poses, or for the prevention of cruelty to children or 
 animals, no part of the net earnings of which inures to 
 the benefit of any private stockholder or individual ; 
 Chambers of (7) Business Icagues, chambers of commerce, or boards 
 
 commerce, boards j.\ ' ^ , • i j £j. j j. £j\. j. 
 
 of trade, etc. of trade, not organized for profit and no part oi the net 
 Digitized by mcrosoft® 
 
INCOME TAXES. 497 
 
 earnings of which inures to the benefit of any private 
 stockholder or individual ; 
 
 (8) Civic leagues or organizations not organized for or ^o'rganiilt^f 
 profit but operated exclusively for the promotion of social 
 
 welfare ; 
 
 (9) Clubs organized and operated exclusively for pleas- ^i^^^^^^^"- '^*'^- 
 ure, recreation, and other nonprofitable purposes, no part 
 
 of the net earnings of which inures to the benefit of any 
 private stockholder or member; 
 
 (10) Farmers' or other mutual hail, cyclone, or fire in- Mutual insur- 
 surance companies, mutual ditch or irrigation companies, panles '''oi' Scai 
 mutual or cooperative telephone companies, or like or- character. 
 ganizations of a purely local character, the income of 
 
 which consists solely of assessments, dues, and fees col- 
 lected from members for the sole purpose of meeting ex- 
 penses ; 
 
 (11) Farmers', fruit growers', or like associations, or- „.J?™^''=' ^™°; 
 
 ^ . ' - 'j.T^i 'j.j!ii 'j! nations operated 
 
 ganized and operated as sales agents for the purpose or as sales agents. 
 marketing the products of members and turning back 
 to them the proceeds of sales, less the necessary selling 
 expenses, on the basis of the quantity of produce fur- 
 nished by them ; 
 
 (12) Corporations organized for the exclusive pur- paSei'^'"^ """ 
 pose of holding title to property, collecting income there- 
 from, and turning over the entire amount thereof, less 
 expenses, to an organization which itself is exempt from 
 
 the tax imposed by this title ; 
 
 (13) Federal land banks and national farm-loan as- ^aifk^'^^^Iid 'ra'^ 
 sociations as provided in section 26 of the act approved tionai farmioan 
 July 17, 1916, entitled " An Act to provide capital for ^=^°<=i^«°'»^- 
 agricultural development, to create standard forms of in- 
 vestment based upon farm mortgage, to equalize rates 
 
 of interest upon farm loans, to furnish a market for 
 United States bonds, to create Government depositaries 
 and financial agents for the United States, and for othei' 
 purposes" ; 
 
 (14) Personal service corporations. ice^corporitionl 
 Sec. 232. That in the case of a corporation subject to ^^«^ income de- 
 
 the tax imposed by section 230 the term "net income" 
 means the gross income as defined in section 233 less the 
 deductions allowed by section 234, and the net income 
 shall be computed on the same basis as is provided in 
 subdivision (b) of section 212 or in section 226. 
 
 Sec. 233. (a) That in the case of a corporation sub- ^^^^°^ income 
 ject to the tax imposed by section 230 the term " gross 
 income " means the gross income as defined in section 
 213, except that : 
 
 (1) In the case of life insurance companies there shall com"an/eT"""" 
 not be included in gross income such portion of any 
 actual premium received from any individual policy- 
 holder as is paid back or credited to or treated as an 
 abatement of premium of such policyholder within the 
 taxable year. 
 
 140184°— 20 ^32 
 
 Digitized by Microsoft® 
 
498 
 
 INCOME TAXES. 
 
 )nJ!fi'.'^?i ^^i,? (2) Mutual marine insurance companies shall include 
 
 insurance compa- . ^ ^ . , • n j^ t i 
 
 nies. m gross lucome the gross premiums collected and re- 
 
 ceived by them less amounts paid for reinsurance. 
 oratfo'Sf" °"' C') ^^ *^® ^^^^ *'^ ^ foreign corporation gross income 
 
 pora ions. includes only the gross income from sources within the 
 
 United States, including the interest on bonds, notes, or 
 other interest-bearing obligations of residents, corporate 
 or otherwise, dividends from resident corporations, and 
 including all amounts received (although paid under 
 a contract for the sale of goods or otherwise) represent- 
 ing profits on the manufacture and disposition of goods 
 within the United States. 
 Deductions ai- Sec. 234. (a) That in computing the net income of a 
 
 lowed. corporation subject to the tax imposed by section 230 
 
 there shall be allowed as deductions : 
 Expenses. (1) All the Ordinary and necessary expenses paid or 
 
 incurred during the taxable year in carrying on any trade 
 or business, including a reasonable allowance for salaries 
 or other compensation for personal services actually ren- 
 dered, and including rentals or other payments required 
 to be made as a condition to the continued use or posses- 
 sion of property to which the corporation has not taken 
 or is not taking title, or in which it has no equity ; 
 
 or^a^ccrald ^"^ (2) ^^^ interest paid or accrued within the taxable 
 year on its indebtedness, except on indebtedness incurred 
 or continued to purchase or carry obligations or securi- 
 ties (other than obligations of the United States issued 
 after September 24, 1917) the interest upon which is 
 wholly exempt from taxation under this title as income 
 to the taxpayer, or, in the case of a foreign corporation, 
 the proportion of such interest which the amount of its 
 gross income from sources within the United States bears 
 to the amount of its gross income from all sources within 
 and without the United States ; 
 Taxes paid or (3) Taxes paid or accrued within the taxable year im- 
 
 accrued. poscd (a) by the authority of the United States, except 
 
 income, war-profits and excess-profits taxes; or (b) by 
 the authority of any of its possessions, except the amount 
 of income, war-profits and excess-profits taxes allowed as 
 a credit under section 238; or (c) by the authority of 
 any State or Territory, or any county, school district, 
 municipality, or other taxing subdivision of any State or 
 Territory, not including those assessed against local 
 benefits of a kind tending to increase the value of the 
 property assessed; or (d) in the case of a domestic cor- 
 poration, by the authority of any foreign country, ex- 
 cept the amount of income, war-profits and excess-profits 
 taxes allowed as a credit under section 238; or (e) in the 
 case of a foreign corporation, by the authority of any 
 foreign country (except income, war-profits and excess- 
 profits taxes, and taxes assessed against local benefits of 
 a kind tending to increase the value of the property 
 assessed) , upon the property or business : Provided^ That 
 in the c^^yf^iff^^m^^m^Mi'' subdivision (b) of sec- 
 
INCOME TAXES. 499 
 
 tion 221 no deduction for the payment of the tax imposed 
 by this title or any other tax paid pursuant to the con- 
 tract or provision referred to in that subdivision, shall 
 be allowed ; 
 
 (4) Losses sustained during the taxable year and not Losses. 
 compensated for by insurance or otherwise ; 
 
 (5) Debts ascertained to be worthless and charged off Bad debts. 
 within the taxable year ; 
 
 (6) Amounts received as dividends from a corporation Dividends. 
 which is taxable under this title upon its net income, and 
 amounts received as dividends from a personal service 
 corporation out of earnings or profits upon which income 
 
 tax has been imposed by Act of Congress ; 
 
 (7) A reasonable allowance for the exhaustion, wear j^^^,'"' i,soi''s'' 
 and tear of property used in the trade or business, includ- cence. ' 
 
 ing a reasonable allowance for obsolescence; 
 
 (8) In the case of buildings, machinery, equipment, ^io^nce"'^*'°° 
 or other facilities, constructed, erected, installed, or ac- 
 quired, on or after April 6, 1917, for the production of 
 
 articles contributing to the prosecution of the present 
 war, and in the case of vessels constructed or acquired on 
 or after such date for the transportation of articles or 
 men contributing to the prosecution of the present war, 
 there shall be allowed a reasonable deduction for the 
 amortization of such part of the cost of such facilities 
 or vessels as has been borne by the taxpayer, but not 
 again including any amount otherwise allowed under this 
 title or previous Acts of Congress as a deduction in com- 
 puting net income. At any time within three years after 
 the termination of the present war the Commissioner 
 may, and at the request of the taxpayer shall, reexamine 
 the return, and if he then finds as a result of an appraisal 
 or from other evidence that the deduction originally al- 
 lowed was incorrect, the taxes imposed by this title and 
 by Title III for the year or years affected shall be rede- 
 termined and the amount of tax due upon such redeter- 
 mination, if any, shall be paid upon notice and demand 
 by the collector, or the amount of tax overpaid, if any, 
 shall be credited or refunded to the taxpayer in accord- 
 ance with the provisions of section 252 ; 
 
 (9) In the case of mines, oil and gas wells, other natural gj^'"^- t^ber, 
 deposits, and timber, a reasonable allowance for depletion 
 
 and for depreciation of improvements, according to the 
 peculiar conditions in each case, based upon cost includ- 
 ing cost of development not otherwise deducted: Pro- 
 vided, That in the case of such properties acquired prior 
 to March 1, 1913, the fair market value of the property 
 (or the taxpayer's interest therein) on that date shall be 
 taken in lieu of cost up to that date: Provided further, 
 That in the case of mines, oil and gas wells, discovered 
 by the taxpayer, on or after March 1, 1913, and not 
 acquired as the result of purchase of a proven tract or 
 lease, where the fair market value of the property is ma- 
 terially disproportionate to the cost, the depletion allow- 
 Digitized by Microsoft® 
 
500 IBTCOME TAXES. 
 
 ance shall be based upon the fair market value of the 
 property at the date of the discovery, or within thirty 
 days thereafter; such reasonable allowance in all the 
 above cases to be made under rules and regulations to be 
 prescribed by the Commissioner with the approval of the 
 Secretary. In the case of leases the deductions allowed by 
 this paragraph shall be equitably apportioned between 
 the lessor and lessee ; 
 
 paries™™^ ™" (-'^^) ^^ *^® ^^^® ^^ insurance companies, in addition to 
 the above: (a) The net addition required by law to be 
 made within the taxable year to reserve funds (including 
 in the case of assessment insurance companies the actual 
 deposit of sums with State or Territorial officers pursuant 
 to law as additions to guarantee or reserve funds) ; and 
 (b) the sums other than dividends paid within the taxable 
 year on policy and annuity contracts ; 
 
 and' amiden?^in- (H) ^^ ^^^^ ^^^^ of Corporations issuing policies cover- 
 
 Burance. ing life, health, and accident insurance combined in one 
 
 policy issued on the weekly premium payment plan con- 
 tinuing for life and not subject to cancellation, in addi- 
 tion to the above, such portion of the net addition (not 
 required by law) made within the taxable year to reserve 
 funds as the Commissioner finds to be required for the 
 protection of the holders of such policies only ; 
 • ^'"'"fisura'nce (^^^ ^^ ^^^ ^^^® ^^ mutual marine insurance companies, 
 
 companies. there shall be allowed, in addition to the deductions 
 
 allowed in paragraphs (1) to (10), inclusive, amoimts 
 repaid to policyholders on account of premiums previ- 
 ously paid by them, and interest paid upon such amounts 
 between the ascertainment and the payment thereof : 
 other mutual (13) In the casc of mutual insurance companies (other 
 
 insurance compa- ^j^^j^ j^utual life or mutual marine insurance companies) 
 requiring their members to make premium deposits to 
 provide for losses and expenses, there shall be allowed, in 
 addition to the deductions allowed in paragraphs (1) to 
 (10), inclusive, (unless otherwise allowed under such 
 paragraphs) the amount of premium deposits returned to 
 their policyholders and the amount of premium deposits 
 retained for the payment of losses, expenses, and rein- 
 surance reserves ; 
 
 aba'temeiit ' " (^^^ (a) At the time of filing return for the taxable 
 3'ear 1918 a taxpayer may file a claim in abatement based 
 on the fact that he has sustained a substantial loss 
 (whether or not actually realized by sale or other dispo- 
 sition) resulting from any material reduction (not due 
 to temporary fluctuation) of the value of the inventory 
 for such taxable year, or from the actual payment after 
 the close of such taxable year of rebates in pursuance of 
 contracts entered into during such year upon sales made 
 
 payer?'^ °' **''" during such year. In such case payment of the amount of 
 the tax covered by such claim shall not be required until 
 the claim is decided, but the taxpayer shall accompany his 
 claim, with a bond in double the amount of the tax cov- 
 ered by the claim, with sureties satisfactory to the Com- 
 Digitized by Microsoft® 
 
INCOME TAXES. 501 
 
 missioner, conditioned for the payment of any part of 
 such tax found to be due, with interest. If any part of 
 such claim is disallowed then the remainder of the tax due 
 shall on notice and demand by the collector be paid by the 
 taxpayer with interest at the rate of 1 per centum per 
 month from the time the tax would have been due had no 
 such claim been filed. If it is shown to the satisfaction of 
 the Commissioner that such substantial loss has been sus- 
 tained, then in computing the taxes imposed by this title 
 and by Title III the amount of such loss shall be deducted 
 from the net income, (b) If no such claim is filed, but it lo °^'^'^''he?e no 
 is shown to the satisfaction of the Commissioner that claim wed. 
 during the taxable year 1919 the taxpayer has sustained a 
 substantial loss of the character above described then the 
 amount of such loss shall be deducted from the net income 
 for the taxable year 1918 and the taxes imposed by this 
 title and by Title III for such year shall be redetermined 
 accordingly. Any amount found to be due to the tax- 
 payer upon the basis of such redetermination shall be 
 credited or refunded to the taxpayer in accordance with 
 the provisions of section 252. 
 
 Contributions to religious, etc., corporations not de- 
 ductible, though to Red Cross or other war activities. 
 (T. D. 2847.) 
 
 Instructions as to bonds. (T. D. 2925.) 
 
 (b) In the case of a foreign corporation the deductions Foreign corpo- 
 allowed in subdivision (a), except those allowed in para- " ^°'^' 
 graph (2) and in clauses (a), (b), and (c) of paragraph 
 ( 3 ) , shall be allowed only if and to the extent that they 
 are connected with income arising from a source within 
 the United States; and the proper apportionment and 
 allocation of the deductions with respect to sources of 
 income within and without the United States shall be 
 determined under rules and regulations prescribed by 
 the Commissioner with the approval of the Secretary. 
 
 Sec. 235. That in computing net income no deduction ductiSl °°* ^^ 
 shall in any case be allowed in respect of any of the items 
 specified in section 215. 
 
 Sec. 236. That for the purpose only of the tax imposed c r e d i t s ai- 
 by section 230 there shall be allowed the following 
 credits : 
 
 (a) The amount received as interest upon obligations interest upon 
 of the United States and bonds issued by the War J;'bUga'tions ^ and 
 Finance Corporation, which is included in gross income ^°^'^'' <>' war Fi- 
 
 ^ „ ' => nance Corpora- 
 
 under section 266 ; tion. 
 
 (b) The amount of any taxes imposed by Title III for Taxes, 
 the same taxable year: Provided, That in the case of a 
 corporation which makes return for a fiscal year begin- 
 ning in 1917 and ending in 1918, in computing the tax as 
 provided in subdivision (a) of section 205, the tax com- 
 puted for the entire period under Title II of the Revenue 
 
 Act of 1917 shall be credited against the net income com- 
 puted for the entire period under Title I of the Revenue 
 Act of 1916 as amended by the Revenue Act of 1917 and 
 Digitized by Microsoft® 
 
502 IlSrCOME TAXES. 
 
 under Title I of the Revenue Act of 1917, and the tax 
 computed for the entire period under Title III of this 
 Act at the rates prescribed for the calendar year 1918 
 shall be credited against the net income computed for the 
 entire period under this title ; and 
 poratiSnl"" """" i^) ^^ ^^^ ^^^ of a domestic corporation, $2,000. 
 
 Payment o t Sec. 237. That in the case of foreign corporations sub- 
 tax at source, j^^^ ^^ taxation under this title not engaged in trade or 
 business within the United States and not having any 
 office or place of business therein, there shall be deducted 
 and withheld at the source in the same manner and upon 
 the same items of income as is proAdded in section 221 a 
 tax equal to 10 per centum thereof, and such tax shall be 
 returned and paid in the same manner and subject to the 
 same conditions as provided in that section: Provided, 
 That in the case of interest described in subdivision (b) 
 of that section the deduction and withholding shall be at 
 the rate of 2 per centum. 
 Credit for Sec. 238. (a) That in the case of a domestic corpora- 
 **^"' tion the total taxes imposed for the taxable year by this 
 
 title and by Title III shall be credited with the amount 
 of any income, war-profits and excess-profits taxes paid 
 during the taxable year to any foreign country, upon 
 income derived from sources therein, or to any posses- 
 sion of the United States. 
 
 If accrued taxes when paid differ from the amounts 
 claimed as credits by the corporation, or if any tax paid 
 is refunded in whole or in part, the corporation shall at 
 once notify the Commissioner who shall redetermine the 
 amount of the taxes due under this title and under Title 
 III for the year or years affected, and the amount of taxes 
 due upon such redetermination, if any, shall be paid by 
 the corporation upon notice and demand by the collector, 
 or the amount of taxes overpaid, if any, shall be credited 
 or refunded to the corporation in accordance with the 
 provisions of section 252. In the case of such a tax ac- 
 crued, but not paid, the Commissioner as a condition 
 precedent to the allowance of this credit may require the 
 corporation to give a bond with sureties satisfactory to 
 and to be approved by him in such penal sum as he may 
 require, conditioned for the payment by the taxpayer of 
 any amount of taxes found due upon any such redeter- 
 mination; and the bond herein prescribed shall contain 
 such further conditions as the Commissioner may require. 
 Evidence. (b) TMs credit shall be allowed only if the taxpayer 
 
 furnishes evidence satisfactory to the Commissioner 
 showing the amount of income derived from sources 
 within such foreign country or such possession of the 
 United States, as the case may be, and all other informa- 
 tion necessary for the computation of such credit. 
 Fiscal year (c)Ifa domestic corporation makes a return for a fis- 
 ending in 1918. ^^j ^^^j, beginning in 1917 and ending in 1918, only that 
 proportion of this credit shall be allowed which the part 
 Digitized by Microsoft® 
 
INCOME TAXES. 503 
 
 of such period within the calendar year 1918 bears to the 
 entire period. 
 
 Sec. 239. That every corporation subject to taxation t^^^^"™""" '^ 
 under this title and every personal service corporation 
 shall make a return stating specifically the items of its 
 gross income and the deductions and credits allowed by 
 this title. The return shall be sworn to by the president, 
 ■vice president, or other principal officer and by the 
 treasurer or assistant treasurer. If any foreign corpora- 
 tion has no office or place of business in the United States 
 but has an agent in the United States, the return shall 
 be made by the agent. In cases where receivers, trustees 
 in bankruptcy, or assignees are operating the property 
 or business of corporations, such receivers, trustees, or 
 assignees shall make returns for such corporations in the 
 same manner and form as corporations are required to 
 make returns. Any tax due on the basis of such returns 
 made by receivers, trustees, or assignees shall be collected 
 in the same manner as if collected from the corporations 
 of whose business or property they have custody and con- 
 trol. 
 
 Returns made under this section shall be subject to the 
 provisions of sections 226 and 228. When return is made 
 under section 226 the credit provided in subdivision (c) 
 of section 236 shall be reduced to an amount which bears 
 the same ratio to the full credit therein provided as the 
 number of months in the period for which such return 
 is made bears to twelve months. 
 
 Sec. 240. (a) That corporations which are affiliated t„*J^°"'^^*^'* "^^ 
 within the meaning of this section shall, under regulations 
 to be prescribed by the Commissioner with the approval 
 of the Secretary, make a consolidated return of net in- 
 come and invested capital for the purposes of this title 
 and Title III, and the taxes thereunder shall be com- 
 puted and determined upon the basis of such return: 
 Provided, That there shall be taken out of such consoli- 
 dated net income and invested capital, the net income and 
 invested capital of any such affiliated corporation organ- 
 ized after August 1, 1914, and not successor to a then 
 existing business, 50 per centum or more of whose gross 
 income consists of gains, profits, commissions, or other 
 income, derived from a Government contract or contracts 
 made between April 6, 191Y, and November 11, 1918, both 
 dates inclusive. In such case the corporation so taken 
 out shall be separately assessed on the basis of its own 
 invested capital and net income and the remainder of 
 such affiliated group shall be assessed on the basis of the 
 remaining consolidated invested capital and net income. 
 
 In any case in which a tax is assessed upon the basis 
 of a consolidated return, the total tax shall be computed 
 in the first instance as a unit and shall then be assessed 
 upon the respective affiliated corporations in such pro- 
 portions as may be agreed upon among them, or, in the 
 absence of any such agreement, then on the basis of the 
 Digitized by Microsoft® 
 
504 INCOME TAXES, 
 
 net income properly assignable to each. There shall be 
 allowed in computing the income tax only one specific 
 credit of $2,000 (as provided in section 236) ; in com- 
 puting the war-profits credit (as provided in section 311) 
 only one specific exemption of $3,000 ; and in computing 
 the excess-profits credit (as provided in section 312) only 
 one specific exemption of $3,000. 
 
 Amended returns accepted so that taxable years of afEli-- 
 ated corporations will coincide. (T. D. 2805.) 
 
 tio^i'^deemenT- (h) For the purpose of this section two or more do- 
 fiiiated. mestic corporations shall be deemed to be affiliated (1) 
 
 if one corporation owns directly or controls through 
 closely affiliated interests or by a nominee or nominees 
 substantially all the stock of the other or others, or (2) 
 if substantially all the stock of two or more corpora- 
 tions is owned or controlled hj the same interests. 
 poStiSn"*ownTiS (c) ^^^ the purposes of section 238 a domestic corpo- 
 majority of vot- ratlou which owus a majority of the voting stock of a 
 eifn cOTpo?ation! forcigu Corporation shall be deemed to have paid the 
 same proportion of any income, war-profits and excess- 
 profits taxes paid (but not including taxes accrued) by 
 such foreign corporation during the taxable year to any 
 foreign country or to any possession of the United 
 States upon income derived from sources without the 
 United States, which the amount of any dividends (not 
 deductible under section 234) received by such domestic 
 corporation from such foreign corporation during the 
 taxable year bears to the total taxable income of such 
 foreign corporation upon or with respect to which such 
 taxes were paid: Provided, That in no such case shall 
 the amomit of the credit for such taxes exceed the 
 amount of such dividends (not deductible under section 
 234) received by such domestic corporation during the 
 taxable year. 
 Time for filing gj-c. 241. (a) That returns of corporations shall be 
 made at the same time as is provided in subdivision (a) 
 of section 227. 
 
 Time for 131ing returns by partnerships and personal 
 service corporations having fiscal year ended January 31, 
 February 28, March 31, or April 30 extended to August 
 15, 1919. (T. D. 2883.) 
 
 Place for filing (^\y\ Eetums shall be made to the collector of the dis- 
 trict in which is located the principal place of business 
 or principal office or agency of the corporation, or, if 
 it has no principal place of business or principal office 
 or agency in the United States, then to the collector at 
 Baltimore, Maryland. 
 
 Part IV. — Administratia^ Provisions. 
 
 taxef ^i^ install- '^^^- '^^^- (^) That cxccpt as otherwise provided in this 
 
 ments. scctioii and sections 221 and 237 the tax shall be paid in 
 
 four installments, each consisting of one-fourth of the 
 
 total amoigi^-^fg^^t^^^^Tl^^rst installment shall be 
 
INCOME TAXES. 605 
 
 paid at the time fixed by law for filing the return, and 
 the second installment shall be paid on the fifteenth day 
 of the third month, the third installment on the fifteenth 
 day of the sixth month, and the fourth installment on the 
 fifteenth day of the ninth month, after the time fixed 
 by law for filing the return. Where an extension of 
 time for filing a return is granted the time for payment 
 of the first installment shall be postponed until the date 
 of the expiration of the period of the extension, but the 
 time for payment of the other installments shall not be 
 postponed vinless the Commissioner so provides in grant- 
 ing the extension. In any case in which the time for the 
 payment of any installment is at the request of the tax- 
 payer thus postponed, there shall be added as part of such 
 installment interest thereon at the rate of ^ of 1 per 
 centum per month from the time it would have been due 
 if no extension had been granted, until paid. If any 
 installment is not paid when due, the whole amount of 
 the tax unpaid shall become due and payable upon notice 
 and demand by the collector. 
 
 The tax may at the option of the taxpayer be paid in a Time ot pay- 
 single payment instead of in installments, in which case 5e"*pay^meTt 
 the total amount shall be paid on or before the time fixed '"^^^ 
 by law for filing the return, or, where an extension of time 
 for filing the return has been granted, on or before the 
 expiration of the period of such extension. 
 
 Instructions as to acceptance of certificates of indebted- 
 ness in payment of taxes due June 16, 1919. (T. D. 2850.) 
 
 Time of payment where corporation has filed return for 
 fiscal year ending In 1918. (T. D. 2797.) 
 
 Acceptance of certificates of indebtedness In payment of 
 taxes payable September 5, 1919, and December 1.5, 1919. 
 (Articles 1731 and 1732, Regulations No. 45, supplemented ; 
 T. D. 2907.) 
 
 (b) As soon as practicable after the return is filed, the Examination of 
 Commissioner shall examine it. If it then appears that mi"sionerf ^°'"' 
 the correct amount of the tax is greater or less than that 
 shown in the return, the installments shall be recomputed. Recomputation 
 If the amount already paid exceeds that which should ° credits""" ^' 
 have been paid on the basis of the installments as recom- 
 puted, the excess so paid shall be credited against the 
 subsequent installments; and if the amount already paid 
 exceeds the correct amount of the tax, the excess shall be 
 credited or refunded to the taxpayer in accordance with 
 the provisions of section 252. 
 
 If the amount already paid is less- than that which ^^f*'',™™! '" 
 should have been paid, the difference shall, to the extent mint? "" ^^'^^' 
 not covered by any credits then due to the taxpayer under 
 section 252, be paid upon notice and demand by the col- 
 lector. In such case if the return is made in good faith 
 and the understatement of the amount in the return is 
 not due to any favilt of the taxpayer, there shall be no 
 penalty because of such understatement. If the under- Penalties. 
 statement is due to negligence on the part of the tax- 
 
 Digitized by Microsoft® 
 
506 INCOME TAXES. 
 
 payer, but without intent to defraud, there shall be added 
 as part of the tax 5 per centum of the total amount of 
 the deficiency, plus interest at the rate of 1 per centum 
 per month on the amount of the deficiency of each install- 
 ment from the time the installment was due. 
 case^of*\*rlua ' " ^^ ^^^ Understatement is false or fraudulent with in- 
 tent to evade the tax, then, in lieu of the penalty provided 
 by section 3176 of the Revised Statutes, as amended, for 
 false or fraudulent returns willfully made, but in ad- 
 dition to other penalties provided by law for false or 
 fraudulent returns, there shall be added as part of the 
 tax 50 per centum of the amount of the deficiency. 
 notice™l''nd"T («) If the retum is made pursuant to section 2176 of 
 mand. the Ecvised Statutes as amended, the amount of tax de- 
 
 termined to be due under such return shall be paid upon 
 notice and demand by the collector. 
 termSItion"^ and ^^^ Except iu the case of false or fraudulent returns 
 assessment o 1 with intent to evade the tax, the amount of tax due under 
 *^^ any return shall be determined and assessed by the Com- 
 
 missioner within five years after the return was due or 
 was made, and no suit or proceeding for the collection 
 of any tax shall be begun after the expiration of five 
 years after the date when the return was due or was 
 made. In the case of such false or fraudulent returns, the 
 amount of tax due may be determined at any time after 
 the return is filed, and the tax may be collected at any 
 time after it becomes due. 
 of^dXi^uiSc'^''^* (®) ^^ ^^y ^^^ remains unpaid after the date when it 
 is due, and for ten days a-fter notice and demand by the 
 collector, then, except in the case of estates of insane, de- 
 ceased, or insolvent persons, there shall be added as part 
 of the tax the sum of 5 per centum on the amount due but 
 unpaid, plus interest at the rate of 1 per centum per 
 month upon such amount from the time it became due: 
 Provided, That as to any such amount which is the sub- 
 ject of a bona fide claim for abatement such sum of 5 per 
 centum shall not be added and the interest from the time 
 the amount was due until the claim is decided shall be at 
 the rate of | of 1 per centum per month. 
 when*'''tax' ^dul ^^ ^^^ ^^^^ ^^ the first installment provided for in sub- 
 and demand. division (a) the instructions printed on the return shall 
 be deemed sufficient notice of the date when the tax is 
 due and sufficient demand, and the taxpayer's coinputa- 
 tion of the tax on the return shall be deemed sufficient 
 notice of the amount due. 
 Penalty incase (f) In any case in which in order to enforce payment 
 IS rain . ^^ ^ ^^^ ^^ ^^ ueccssary for a collector to cause a warrant 
 of distraint to be served, there shall also be added as part 
 of the tax the sum of $5. 
 for^teSiye^fde'? (s) If the Commissioner finds that a taxpayer de- 
 signing to de- signs quickly to depart from the United States or to re- 
 states™™ to"con- move his property therefrom, or to conceal himself or his 
 ceai themselves, property therein, or to do any other act tending to preju- 
 dice or t(^p^|^^/g^^^o^^/^rtly ineffectual proceed- 
 
INCOME TAXES. 507 
 
 ings to collect the tax for the taxable jear then last past 
 or the taxable year then current unless such proceedings 
 be brought without delay, the Commissioner shall declare 
 the taxable period for such taxpayer terminated at the 
 end of the calendar month then last past and shall cause 
 notice of such finding and declaration to be given the 
 taxpayer, together with a demand for immediate pay- 
 ment of the tax for the taxable period so declared ter- 
 minated and of the tax for the preceding taxable year or 
 so much of said tax as is unpaid, whether or not the time 
 otherwise allowed by law for filing return and paying 
 the tax has expired; and such taxes shall thereupon be- 
 come immediately due and payable. In any action or flndi'S°''||'°"pre- 
 suit brought to enforce payment of taxes made due and sumptive evi- 
 payable by virtue of the provisions of this subdivision the ^"^ ° ^^^^^' 
 finding of the Commissioner, made as herein provided, 
 whether made after notice to the taxpayer or not, shall 
 be for all purposes presumptive evidence of the taxpay- 
 er's design. A taxpayer who is not in default in making security tnr- 
 
 , ° K •' . f. » nished by tax- 
 
 any return or paying income, war-pronts, or excess- payer. 
 
 profits tax under any Act of Congress may furnish to 
 the TTnited States, under regulations to be prescribed by 
 the Commissioner with the approval of the Secretary, 
 security approved by the Commissioner that he will duly 
 make the return next thereafter required to be filed and 
 pay the tax next thereafter required to be paid. The 
 Commissioner may approve and accept in like manner 
 security for return and payment of taxes made due and 
 payable by virtue of the provisions of this subdivision, 
 provided the taxpayer has paid in full all other income, 
 war-profits, or excess-profits taxes due from him under 
 any Act of Congress. If security is approved and ac- 
 cepted pursuant to the provisions of this subdivision and 
 such further or other security with respect to the tax or 
 taxes covered thereby is given as the Commissioner shall 
 from time to time find necessary and require, payment of 
 such taxes shall not be enforced by any proceedings under 
 the provisions of this subdivision prior to the expiration 
 of the time otherwise allowed for paying such respective 
 taxes. 
 
 Sec. 251. That every collector to whom any payment of ^^^f^'P*^ * " '^ 
 any tax is made under the provisions of this title shall 
 upon request give to the person making such payment a 
 full written or printed receipt, stating the amount paid 
 and the particular account for which such payment was 
 made ; and whenever any debtor pays taxes on account of 
 payments made or to be made by him to separate credit- 
 ors the collector shall, if requested by such debtor, give a 
 separate receipt for the tax paid on account of each 
 creditor in such form that the debtor can conveniently 
 produce such receipts separately to his several creditors 
 in satisfaction of their respective demands up to the 
 amounts stated in the recepits; and such receipt shall be 
 
 Digitized by Microsoft® 
 
508 
 
 INCOME TAXES. 
 
 Kefunds. 
 
 sufficient evidence in favor of such debtor to justify him 
 in withholding from his next payment to his creditor the 
 amount therein stated ; but the creditor may, upon giving 
 to his debtor a full written receipt acknowledging the 
 payment to him of any sum actually paid and accepting 
 the amount of tax paid as aforesaid (specifying the 
 same) as a further satisfaction of the debt to that amount, 
 require the surrender to him of such collector's receipt. 
 
 Simulation or fraudulent execution of receipts. 
 States V. Pittaro, T. D. 2874.) 
 
 (United 
 
 Sec. 252. That if, upon examination of any return of 
 income made pursuant to this Act, the Act of August 5, 
 1909, entitled "An Act to provide revenue, equalize 
 duties, and encourage the industries of the United States, 
 and for other purposes," the Act of October 3, 1913, enti- 
 tled "An Act to reduce tariff duties and to provide reve- 
 nue for the Government, and for other purposes," the 
 Revenue Act of 1916, as amended, or the Revenue Act 
 of 1917, it appears that an amount of income, war-profits 
 or excess-profits tax has been paid in excess of that prop- 
 erly due, then, notwithstanding the provisions of section 
 3228 of the Revised Statutes, the amount of the excess 
 shall be credited against any income, war-profits or 
 excess-profits taxes, or installment thereof, then due from 
 the taxpayer under any other return, and any balance of 
 such excess shall be immediately refunded to the tax- 
 payer : Provided, That no such credit or refund shall be 
 allowed or made after five years from the date when the 
 return was due, unless before the expiration of such five 
 years a claim therefor is filed by the taxpayer. 
 
 Procedure to be followed by collectors with respect to 
 refund claims. (Article 1036, Regulations No. 45, amended; 
 T. D. 2871.) 
 
 Penalties f or Sec. 253. That any individual, corporation, or partner- 
 return or" supply ship required under this title to pay or collect any tax, 
 information. ^q make a return or to supply information, who fails to 
 pay or collect such tax, to make such return, or to supply 
 such information at the time or times required under this 
 title, shall be liable to a penalty of not more than $1,000. 
 Any individual, corporation, or partnership, or any officer 
 or employee of any corporation or member or employee 
 of a partnership, who willfully refuses to pay or collect 
 such tax, to make such return, or to supply such informa- 
 tion at the time or times required under this title, or 
 who willfully attempts in any manner to defeat or evade 
 the tax imposed by this title, shall be guilty of a misde- 
 meanor and shall be fined not more than $10,000 or im- 
 prisoned for not more than one year, or both, together 
 with the costs of prosecution. 
 Eeturns of Sec. 254. That every corporation subject to the tax 
 dends!"*^ °^ '^"' imposed by this title and every personal service corpora- 
 tion shall, when required by the Commissioner, render a 
 
 Digitized by Microsoft® 
 
INCOME TAXES. 509 
 
 correct return duly verified under oath, of its payments 
 of dividends, stating the name and address of each stock- 
 holder, the number of shares owned by him, and the 
 amount of dividends paid to him. 
 
 Sec. 255. That every individual, corporation, or part- Brokers' re- 
 nership doing business as a broker shall, when required by 
 the Commissioner, render a correct return duly verified 
 under oath, under such rules and regulations as the Com- 
 missioner, ^ith the approval of the Secretary, may pre- 
 scribe, showing the names of customers for whom such 
 individual, corporation, or partnership has transacted 
 any business, with such details as to the profits, losses, or 
 other information which the Commissioner may require, 
 as to each of such customers, as will enable the Commis- 
 sioner to determine whether all income tax due on profits 
 or gains of such customers has been paid. 
 
 Sec. 256. That all individuals, corporations, and part- ^ou^"™**'"" "* 
 nerships, in whatever capacity acting, including lessees or " 
 mortgagors of real or personal property, fiduciaries, and 
 employers making payment to another individual, cor- 
 poration, or partnership, of interest, rent, salaries, wages, 
 premiums, annuities, compensations, remunerations, 
 emoluments, or other fixed or determinable gains, profits, 
 and income (other than payments described in sections 
 254 and 255) , of $1,000 or more in any taxable year, or, in 
 the case of such payments made by the United States, the 
 officers or employees of the United States having informa- 
 tion as to such payments and required to make returns in 
 regard thereto by the regulations hereinafter provided 
 for, shall render a true and accurate return to the Com- 
 missioner, under such regulations and in such form and 
 manner and to such extent as may be prescribed by him 
 with the approval of the Secretary, setting forth the 
 amount of such gains, profits, and income, and the name 
 and address of the recipient of such payment. 
 
 Such returns may be required, regardless of amounts, 
 (1) in the case of pajonents of interest upon bonds, mort- 
 gages, deeds of trust, or other similar obligations of cor- 
 porations, and (2) in the case of collections of items (not 
 payable in the United States) of interest upon the bonds 
 of foreign countries and interest upon the bonds of and 
 di'^'idends from foreign corporations by individuals, cor- 
 porations, or partnerships, undertaking as a matter of 
 business or for profit the collection of foreign payments 
 of such interest or dividends by means of coupons, checks, 
 or bills of exchange. 
 
 When necessary to make effective the provisions of this 
 section the name and address of the recipient of income 
 shall be furnished upon demand of the individual, cor- 
 poration, or partnership paying the income. 
 
 The provisions of this section shall apply to the calen- 
 dar year 1918 and each calendar year thereafter, but shall 
 
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510 
 
 INCOME TAXES. 
 
 not apply to the payment of interest on obligations of the 
 United States. 
 
 Revised form of ownership certificates. (T. D. 2923.) 
 
 lio^recorfs*^ ^"''" ^^'^- ^^'^- That returns upon which the tax has been de- 
 termined by the Commissioner shall constitute public 
 records; but they shall be open to inspection only upon 
 order of the President and under rules and regulations 
 prescribed by the Secretary and approved by the Presi- 
 dent : Provided, That the proper officers of any State im- 
 posing an income tax may, upon the request of the gov- 
 ernor thereof, have access to the returns of any corpora- 
 tion, or to an abstract thereof showing the name and in- 
 come of the corporation, at such times and in such man- 
 ner as the Secretary may prescribe: Provided further, 
 That all bona fide stockholders of record owning 1 per 
 centum or more of the outstanding stock of any cor- 
 poration shall, upon making request of the Commis- 
 sioner, be allowed to examine the annual income returns 
 of such corporation and of its subsidiaries. Any stock- 
 holder who pursuant to the provisions of this section is 
 allowed to examine the return of any corporation, and 
 who makes known in any manner whatever not provided 
 by law the amount or source of income, profits, losses, ex- 
 penditures, or any particular thereof, set forth or dis- 
 closed in any such return, shall be guilty of a misde- 
 meanor and be punished by a fine not exceeding $1,000, 
 or by imprisonment not exceeding one year, or both. 
 
 The Commissioner shall as soon as practicable in each 
 year cause to be prepared and made available to public 
 inspection in such manner as he may determine, in the 
 office of the collector in each internal-revenue district and 
 in such other places as he may determine, lists containing 
 the names and the post-office addresses of all individuals 
 making income-tax returns in such district. 
 
 Regulations governing inspection of returns. (T. D. 
 2901. ) 
 
 Furnishing copies of returns. (T. D. 2962.) 
 
 Publication of Sec. 258. That the Commissioner, with the approval 
 of the Secretary, shall prepare and publish annually sta- 
 tistics reasonably available with respect to the operation 
 of the income, war -profits and excess-profits-tax laws, in- 
 cluding classifications of taxpayers and of income, the 
 amounts allowed as deductions, exemptions, and credits, 
 and any other facts deemed pertinent and valuable. 
 forei'^iriteSiB ° ' ^^*^' ^^^" ^hat all individuals, corporations, or part- 
 nerships undertaking as a matter of business or for profit 
 the collection of foreign payments of interest or divi- 
 dends by means of coupons, checks, or bills of exchange 
 shall obtain a license from the Commissioner and shall 
 be subject to such regulations enabling the Government 
 to obtain the information required under this title as the 
 Commissioner, with the approval of the Secretary, shall 
 
 prescribe: and whoever knowingly undertakes to collect 
 Digitized by Microsoft®^ 
 
INCOME TAXES. 511 
 
 such payments without having obtained a license there- 
 for, or without complying with such regulations, shall be 
 guilty of a misdemeanor and shall be fined not more than 
 $5,000, or imprisoned for not more than one year, or 
 both. 
 
 Sec. 260. That any individual who is a citizen of any un*ited's't*a"te°i 
 possession of the United States (but not otherwise a citi- possessions. 
 zen of the United States) and who is not a resident of the 
 United States, shall be subject to taxation under this title 
 only as to income derived from sources within the United 
 States, and in such case the tax shall be computed and 
 paid in the same manner and subject to the same condi- 
 tions as in the case of other persons who are taxable only 
 as to income derived from such sources. 
 
 Sec. 261. That in Porto Rico and the Philippine a „^d'*phiuppfne 
 Islands the income tax shall be levied, assessed, collected, islands. 
 and paid in accordance with the provisions of the Reve- 
 nue Act of 1916 as amended. 
 
 Returns shall be made and taxes shall be paid under 
 Title I of such Act in Porto Rico or the Philippine 
 Islands, as the case may be, by (1) every individual who 
 is a citizen or resident of Porto Rico or the Philippine 
 Islands or derives income from sources therein, and (2) 
 every corporation created or organized in Porto Rico or 
 the Philippine Islands or deriving income from sources 
 therein. An individual who is neither a citizen nor a resi- 
 dent of Porto Rico or the Philippine Islands but derives 
 income from sources therein, shall be taxed in Porto Rico 
 or the Philippine Islands as a nonresident alien individ- 
 ual, and a corporation created or organized outside Porto 
 Rico or the Philippine Islands and deriving income from 
 sources therein shall be taxed in Porto Rico or the Phil- 
 ippine Islands as a foreign corporation. For the pur- 
 poses of section 216 and of paragraph (6) of subdivision 
 (a) of section 234 a tax imposed in Porto Rico or the 
 Philippine Islands upon the net income of a corporation 
 shall not be deemed to be a tax under this title. 
 
 The Porto Rican or Philippine Legislature shall have 
 power by due enactment to amend, alter, modify, or re- 
 peal the income tax laws in force in Porto Rico or the 
 Philippine Islands, respectively. 
 
 Digitized by Microsoft® 
 
Digitized by Microsoft® 
 
Chapter Seyexteen. 
 WAR-PEOFITS AXD EXCESS-PROFITS TAX.^^ 
 
 [Title III, act of February 24, 1919 (40 Stat., 1057).] 
 
 P.\KT I. — Gexeral Defisitioxs. 
 Sec. 
 
 300. Definitions. 
 
 Part II. — IiirosiTio; of tax. 
 Sec. I Sec. 
 
 301. Rates of tax; income from Gov- 303. Computation of tax. 
 
 ernment contracts. 304. Exempt corporations. 
 
 302. Amount of tax limited. 1 305. Reduction of specific exemption. 
 
 Past III. — Credits. 
 Sec. I Sec. 
 
 310. " Prewar period " defined. 312. lOxcfss-profits credit. 
 
 sn. 
 
 A\'ar-proflts credit. 
 
 
 
 
 
 Part IV. — Net Income. 
 
 Sec. 
 
 
 
 
 320. 
 
 Ascertaining and 
 income. 
 
 returning net 
 
 
 
 
 Part Y. — Ixvi 
 
 STEi) Capital. 
 
 Sec. Sec. 
 
 32.5. Definitions ; par value of stock. 327. Determination of tax in certain 
 
 326. " Invested capital " defined ; de- instances. 
 
 ductions; invested capital for 328. (^imputation of tax in certain 
 
 period. cases; records. 
 
 Part VI. — Reor(;axizatioxs. 
 Sec. I Sec. 
 
 330. Corporations; partnerships or in- 331. Reorganization after March 3, 
 
 dividuals. 1917. 
 
 Sec. 
 
 Part VII. — Miscellaxeous. 
 Sec. 
 
 336. Returns required ; payment of tax. 
 
 337. Tax in case of sale of mines, etc. 
 
 Computation where fiscal year be- 
 .gan in 1917 ; fiscal year be- 
 ginning in 1918 ; partnership or 
 personal service corporation 
 with fiscal vear beginning in 
 1917. 
 
 TITLE III.— WAR-PEOFITS AND EXCESS-PROFITS TAX. 
 
 Part I. — General Definitions. 
 
 Sec. 300. [Act of February H, 1919 {Ifi Stat., 1057).] Deflmtions. 
 That when used in this title the terms " taxable year," 
 " fiscal year," " personal service corporation," " paid or 
 accrued," and "dividends " shall have the same meaning 
 as provided for the purposes of income tax in sections 
 200 and 201. The first taxable year for the purposes of 
 this title shall be the same as tjfie first taxable year for 
 the purposes of the income tax under Title II. 
 
 1 See Regulations No. 45. 
 
 = Act of March 3, 1917 (see post, p. 845) ; act of October 3, 1917 (see 
 • post, p. 849). 
 
 140184°— 20 ssDigitized by Microsoft® 5i3 
 
514 "WAR-PROFITS AND EXCESS-PROFITS TAX, 
 
 Part II. — Imposition of Tax. 
 
 Rates of taxes. gj,c. 301. (a) That in lieu of the tax imposed by Title 
 II of the Eevenue Act of 1917, but in addition to the 
 other taxes imposed by this Act, there shall be levied, 
 1918'^"° y <""■ collected, and paid for the taxable year 1918 upon the 
 net income of every corporation a tax equal to the sum 
 of the following: 
 
 FIRST BRACKET. 
 
 \ 
 
 30 per centum of the amount of the net income in ex- 
 cess of the excess-profits credit (determined under sec- 
 tion 312) and not in excess of 20 per centum of the in- 
 vested capital; 
 
 SECOND BEACKKT. 
 
 65 per centum of the amount of the net income in 
 excess of 20 per centum of the invested capital ; 
 
 THIRD BRACKET. 
 
 The sunij if any, by which 80 per centum of the amount 
 of the net income in excess of the war-profits credit (de- 
 termined under section 311) exceeds the amount of the 
 tax computed under the first and second brackets. 
 i9w"^?d thm- C^) ^"^ *^® taxable year 1919 and each taxable year 
 after. thereafter there shall be levied, collected, and paid upon 
 
 the net income of every corporation (except corpora- 
 tions taxable imder subdivision (c) of this section) a 
 tax equal to the sum of the following : 
 
 FIRST BRACKET. 
 
 20 per centum of the amount of the net income in ex- 
 cess of the excess-profits credit (determined under sec- 
 tion 312) and not m excess of 20 per centum of the in- 
 vested capital; 
 
 SECOND BRACKET. 
 
 40 per centum of the amount of the net income in ex- 
 cess of 20 per centum of the invested capital. 
 GoleSrent'co" (c) For the taxable year 1919 and each taxable year 
 tracts. thereafter there shall be levied, collected, and paid upon 
 
 the net income of every corporation which derives in 
 such year a net income of more than $10,000 from any 
 Government contract or contracts made between April 
 6, 1917, and November 11, 1918, both dates inclusive, a 
 tax equal to the sum of the following : 
 
 (1) Such a portion of a tax computed at the rates 
 specified in subdivision (a) as the part of the net income 
 attributable to such Government contract or contracts 
 bears to the entire net income. In computing such tax 
 the excess-profits credit and the war-profits credit ap- 
 plicable to the taxable year shall be used ; 
 
 (2) Such a portion of a tax computed at the rates 
 specified in subdivision (b) as the part of the net in- 
 
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WAB-PBOFITS AST) EXCESS-PROFITS TAX. 515 
 
 come not attributable to such Government contract or 
 contracts bears to the entire net income. 
 
 For the purpose of determining the part of the net 
 income attributable to such Government contract or con- 
 tracts, the proper apportionment and allocation of the 
 deductions with respect to gross income derived from 
 such Government contract or contracts and from other 
 sources, respectively, shall be determined under rules 
 and regulations prescribed by the Commissioner with 
 the approval of the Secretary. 
 
 (d) In any case where the fuU amount of the excess- ''«<*"<=t'o™- 
 profit credit is not allowed under the first bracket of 
 subdivision (a) or (b), by reason of the fact that such 
 
 credit is in excess of 20 per centum of the invested capi- 
 tal, the part not so allowed shall be deducted from the 
 amount in the second bracket. 
 
 (e) For the purposes of the Act approved March 21, ^^^^ ^^<=^ 21, 
 1918, entitled "An Act to provide for the operation of 
 transportation systems while under Federal control, for 
 
 the just compensation of their owners, and for other 
 purposes," the tax imposed by this title shall be treated 
 as levied by an Act m amendment of Title II of the 
 Revenue Act of 1917. 
 
 Exemption of Liberty bonds and Victory notes. (T. D. 
 2836.) 
 
 Sec. 302. That the tax imposed by subdivision (a) of ijA^™"' »« ^x 
 section 301 shall in no' case be more than 30 per centum 
 of the amount of the net income in excess of $3,000 and 
 not in excess of $20,000, plus 80 per centum of the 
 amount of the net income in excess of $20,000; the tax 
 imposed by subdivision (b) of section 301 shall in no 
 case be more than 20 per centum of the amount of the 
 net income in exc'ess of $3,000 and not in excess of 
 $20,000, plus' 40 per centum of the amount of the net in- 
 come in excess of $20,000; and the above limitations 
 shall apply to the taxes computed under subdivisions 
 (a) and (b) of section 301, respectively, when used in 
 subdivision (c) of that section. Nothing in this section 
 shall be construed in such manner as to increase the tax 
 imposed by section 301. 
 
 Sec. 303. That if part of the net income of a corpora- ^^computation of 
 tion is derived (1) foom a trade or business (or a branch 
 of a trade or business) in which the employment of capi- 
 tal is necessary, and (2) a part (constituting not less 
 than 30 per centum of its total net income) is derived 
 from a separate trade or business (or a distinctly sepa- 
 rate branch of the trade or business) which if consti- 
 tuting the sole trade or business would bring it within 
 the class of " personal service corporations," then (under 
 regulations prescribed by the Commissioner with the 
 approval of the Secretary) the tax upon the first part of 
 such net income shall be separately computed (allowing 
 
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'516 WAB-PROFITS AND EXCESS-PKOFITS TAX. 
 
 in such computation only the same proportionate part of 
 the credits authorized in sections 311 and 312), and the 
 tax upon the second part shall be the same percentage 
 thereof as the tax so computed upon the first part is of 
 such first part: Provided, That the tax upon such sec- 
 ond part shall in no case be less than 20 per centum 
 thereof, unless the tax upon the entire net income, if 
 computed without benefit of this section, would consti- 
 tute less than 20 per centum of such entire net income, 
 in which event the tax shall be determined upon the 
 entire net income, without reference to this section, as 
 other taxes are determined under this title. The total 
 tax computed under this section shall be subject to the 
 limitations provided in section 302. 
 oiSS* ''°^' ^^^- ^^^* (^) That the corporations enumerated in 
 section 231 shall, to the extent that they are exempt from 
 income tax under Title II, be exempt from taxation 
 under this title. 
 
 (b) Any corporation whose net income for the taxable 
 year is less than $3,000 shall be exempt from taxation 
 under this title. 
 
 (c) In the case of any corporation engaged in the min- 
 ing of gold, the portion of the net income derived from 
 the mining of gold shall be exempt from the tax imposed 
 by this title, and the tax on the remaining portion of 
 the net income shall be the proportion of a tax computed 
 without the benefit of this subdivision which such re- 
 maining portion of the net income bears to the entire net 
 income. 
 
 Heduction oj Sec. 306. That if a tax is computed under this title 
 tion.' ° exemp- j,^^ ^ period of Icss than twelve months, the specific ex- 
 emption of $3,000, wherever referred to in this title, shall 
 be reduced to an amount which is the same proportion of 
 $3,000 as the number of months in the periQd is of twelve 
 months. 
 
 Part III. — Credits. 
 
 . " J^'Tfi' ^^' Sec. 310. That as used in this title the term " prewar 
 
 nod e ne . pgj.jQ^j ?) mcaus the Calendar years 1911, 1912, and 1913, 
 
 or, if a corporation was not in existence during the whole 
 
 of such period, then as many of such years during the 
 
 Avhole of which the corporation was in existence. 
 
 War-profits Qec. 311. (a) That the war-profits credit shall consist 
 
 credit. j? xi j! 
 
 of the sum or : 
 
 (1) A specific exemption of $3,000; and 
 
 (2) An amount equal to the average net income of the 
 corporation for the prewar period, plus or minus, as the 
 case may be, 10 per centum of the difference between the 
 average invested capital for the prewar period and the 
 invested capital for the taxable year. If the tax is com- 
 puted for a period of less than twelve months such 
 amount shall be reduced to the same proportion thereof 
 as the number of months in the period is of twelve 
 months. Digitized by Microsoft® 
 
WAE-PROriTS AXD EXCESS-PROFITS TAX. 517 
 
 (b) If the corporation had no net income for the pre- 
 war period, or if the amount computed under paragraph 
 
 (2) of the subdivision (a) is less than 10 per centum of I 
 
 its injrested capital for the taxable year, then the war- 
 profits credit shall be the sum of : 
 
 (1) A specific exemption of $3,000 ; and 
 
 (2) An amount equal to 10 per centum of the invested 
 capital for the taxable year. 
 
 (c) If the corporation was not in existence during the 
 whole of at least one calendar year during the prewar 
 period, then, except as provided in subdivision (d), the 
 war-profits credit shall be the sum of : 
 
 fl) A specific exemption of $3,000; and ' 
 (2) An amount equal to the same percentage of the in- 
 vested capital of the taxpayer for the taxable year as the 
 average percentage of net income to invested capital, for 
 the prewar period, of corporations engaged in a trade or 
 business of the same general class as that conducted by 
 the taxpaj-er ; but such amount shall in no case be less than 
 10 per centum of the invested capital of the taxpayer for 
 the taxable j'ear. Such average percentage shall be de- 
 termined by the Commissioner on the basis of data con- 
 tained in returns made under Title II of the Revenue 
 Act of 1917, and the average known as the median shall 
 be used. If such average percentage has not been deter- 
 mined and published at least 30 days prior to the time 
 when the return of the taxpayer is due, then for purposes 
 of such return 10 per centum shall be used in lieu thereof; 
 but such average percentage when determined shall be 
 used for the purposes of section 250 in determining the 
 correct amount of the tax. 
 
 (d) The war-profits credit shall be determined in the 
 manner provided in subdivision (b) . instead of in the 
 manner provided in subdivision (c), in the case of any 
 corporation which was not in existence during the whole 
 of at least one calendar year during the prewar period, 
 if (1) a majority of its stock at any time during the 
 taxable year is owned or controlled, directly or indi- 
 rectly, by a corporation which was in existence during 
 the whole of at least one calendar year during the prewar 
 period, or if (2) 50 per_centum or more of its gross in- 
 come (as computed under section 233 for income tax 
 purposes) consists of gains, profits, commissions, or other 
 income, derived from a government contract or con- 
 tracts made between April 6, 1917, and November 11, 
 1918, both dates inclusive. _ 
 
 (e) A foreign corporation shall not be entitled to a . Exemption of 
 
 ^ .V. P J! d>o nrvA foieign corpoia- 
 
 specinc exemption ot $3,000. lion. 
 
 Sec. 312. That the excess-profits credit shall consist of Excess-profits 
 a specific exemption of $3,000 plus an amount equal to 8 ''"'^'*" 
 per centum of the invested capital for the taxable year. 
 
 A foreign corporation shall not be entitled to the spe- 
 cific exemption of $3,000. 
 
 Digitized by Microsoft® 
 
518 WAB-PKOriTS AND EXCESS-EROFITS TAX. 
 
 Part IV. — ^Nbt Income^ 
 
 Sec. 320.. (a)^ That for tlie purpose of this title the net 
 ittconae of a corporation shall, be ascertained and re;-] 
 turned — 
 and'rrturniJ,g'of (1) ^or the Calendar years 1911 and 1912 upon the 
 net income. game basis and in the same, manner as provided in sec- 1 
 tion 38 of the Act entitled "Ajl Act to provide revenue,' 
 equalize duties, and encourage the industries of the 
 United States, and for other purposes," approved Augu-st 
 5, 1909, except that taxes imposed by such section and 
 paid by the corporation, within the year shall be included; 
 
 (2) For the calendar year 1913 upon the same basis 
 and in the same manner as provided in Section II of 
 
 ■ the Act entitled "An Act to reduce tariff duties, and to 
 provide revenue for the Government, and for other pur- 
 poses," approved October 3., 1913, except tliat taxes im- 
 posed by section 38 of such Act of August 5, 1909, and 
 paid by the corporation ■within the year shall be included, 
 and except that the amounts received by it as dividends 
 upon the stock or from the net earnings of other corpora- 
 tions subject to the tax imposed' by Section II of such 
 Act of October 3, 1913, shall be deducted; and 
 
 (3) For the taxable year upon the same basis and in 
 the same manner as provided for income tax purposes in 
 Title II of this Act. 
 
 A^CTage net (b)The average net income for the prewar period 
 shall be determined by dividing the number of years 
 within that period during the whole of which the cor- 
 poration was in existence into the sum of the net income 
 for such years, even though there may have been no net 
 income for one or more of such years. 
 
 Paet y. — Invested Capital. 
 
 Deflnitions. Sec. 325. (a) That as used in this title — 
 
 The term " intangible property " means patents, copy- 
 rights, secret processes and formulae, good will, trade- 
 marks, trade-brands, franchises, and other like property ; 
 
 The term " tangible property " means stocks, bonds, 
 notes, and other evidences of indebtedness, bills and ac- 
 counts receivable, leaseholds, and other property other 
 than intangible property ; 
 
 The term " borrowed capital " means money or other 
 property borrowed, whether represented by bonds, notes, 
 open accounts, or otherwise ; 
 
 The term " inadmissible assets " means stocks, bonds, 
 and other obligations (other than obligations of the 
 United States), the dividends or interest from which is 
 not included in computing net income, but where the 
 income derived from such assets consists in part of gain 
 or profit derived from the sale or other disposition 
 thereof, or where all or part of the interest derived from 
 Digitized by Microsoft® 
 
 income. 
 
WAE-PROFITS AND EXCESS-PROFITS TAX. 519 
 
 such assets is in effect included in the net income because 
 of the limitation on the deduction of interest under para- 
 graph (2) of subdirision (a) of section 234, a corre- 
 sponding part of the capital invested in such assets shall 
 not be deemed to be inadmissible assets ; 
 
 The term " admissible assets " means all assets other 
 than inadmissible assets, valued in accordance with the 
 provisions of subdivision (a) of section 326, section 330, 
 and section 331. 
 
 (b) For the purposes of this title, the par value of Par value of 
 stock or shares shall, in the case of stock or shares issued ^'°'^''' **''■ 
 at a nominal value or having no par value, be deemed to 
 be the fair market value as of the date or dates of issue 
 of such stock or shares. 
 
 Sec. 326 (a) That as used in this title the term "in- "inyes^ted 
 vested capital" for any j-ear means (except as provided"*^''*'" ■'""""'' 
 
 defined. 
 
 in subdivisions (b) and (c) of this section) : 
 
 (1^ Actual cash bona fide paid in for stock or shares ; 
 
 (2) Actual cash value of tangible property, other than 
 cash, bona fide paid in for stock or shares, at the time of 
 such payment, but in no case to exceed the par value of 
 the original stock or shares specifically issued therefor, 
 unless the actual cash value of such tan^ble property at 
 the time paid in is shown to the satisfaction of the Com- 
 missioner to have been clearly and substantially in excess 
 of such par value, in which case such excess shall be 
 treated as paid-in surplus : Provided, That the Commis- 
 sioner shall keep a record of all cases in which tangible 
 property is included in invested capital at a value in ex- 
 cess of the stock or shares issued therefor, containing the 
 name and address of each taxpayer, the business in which 
 engaged, the amount of invested capital and net income 
 shown by the return, the value of the tangible property 
 at the time paid in, the par value of the stock or shares 
 specifically issued therefor, and the amount included un- 
 der this paragraph as paid-in surplus. The Commis- 
 sioner shall furnish a copy of such record and other de- 
 tailed information with respect to such cases when re- 
 quired by resolution of either House of Congress, without 
 regard to the restrictions contained in section 25T ; 
 
 (3) Paid-in or earned surplus and undivided profits; 
 not including surplus and undivided profits earned dur- 
 ing the year ; 
 
 (4) Intangible property bona fide paid in for stock or 
 shares prior to March 3, 1917, in an amount not exceeding 
 (a) the actual cash value of such property at the time 
 paid in, (b) the par value of the stock or shares issued 
 therefor, or (c) in the aggregate 25 per centum of the par 
 value of the total stock or shares of the corporation out- 
 standing on March 3, 1917, whichever is lowest ; 
 
 (5) Intangible property bona fide paid in for stock or 
 shares on or after March 3, 1917, in an amount not exceed- 
 
 Digitized by Microsoft® 
 
520 
 
 WAPv-PROriTS AND EXCESS-PEOFITS TAX. 
 
 Deductions. 
 
 Invested capi- 
 tal for period. 
 
 ing (a) the actual cash value of such property at the time 
 paid in, (b) the par value of the stock or shares issued 
 therefor, or (c) in the aggregate 25 per centum of the par 
 value of the total stock or shares of the corporation out- 
 standing at the beginning of the taxable year, whichever 
 is lowest : Provided^ That in no case shall the total amount 
 included under paragraphs (4) and ^(5) exceed in the 
 aggregate 25 per centum of the par value of the total 
 stock or shares of the corporation outstanding at the be- 
 ginning of the taxable year ; but 
 
 (b) As used in this title the term "invested capital" 
 does not include borrowed capital. 
 
 (c) There shall be deducted from invested capital as 
 above defined a percentage thereof equal to the percentage 
 which the amount of inadmissible assets is of the amount 
 of admissible and inadmissible assets held during the tax- 
 able year. 
 
 (d) The invested capital for any period shall be the 
 average invested capital for such period, but in the case 
 of a corporation making a return for a fractional part of 
 a year, it shall (except for the purpose of paragraph (2) 
 of subdivision (a) of section 311) be the same fractional 
 part of such average invested capital. 
 
 The average invested capital for the prewar period 
 shall be determined by dividing the number of years with- 
 in that period during the whole of which the corporation 
 was in existence into the sum of the average invested 
 capital for such years. 
 
 Regulations No. 45, amended by inserting new paragraph 
 (84.5(a) ), lieaded, "Surplus and undivided profits ; re- 
 serve for 1918 income and excess profits taxes of corpora- 
 tions having a fiscal year." (T. D. 2931.) 
 
 Determination Sbc. 327. That in the following cases the tax shall be 
 LtTnces" "^"^ *"" determined as provided in section 328 : 
 
 (a) Where the Commissioner is unable to determine 
 the invested capital as provided in section 326 ; 
 
 (b) In the case of a foreign corporation ; 
 
 (c) Where a mixed aggi'egate of tangible property and 
 intangible property has been paid in. for stock or for 
 stock and bonds and the Commissioner is unable satis- 
 factorily to determine the respective values of the several 
 classes of property at the time of payment, or to dis- 
 tinguish the classes of property paid in for stock and for 
 bonds, respectively; 
 
 (d) Where upon application, by the corporation the 
 Commissioner finds and so declares of record that the 
 tax if determined without benefit of this section would, 
 owing to abnormal conditions affecting the capital or in- 
 come of the corporation, work upon the corporation an 
 exceptional hardship evidenced by gross disproportion 
 between the tax computed without benefit of this sec- 
 tion and the tax computed by reference to the representa- 
 tive corporatiojis specified in section 328. This subdivi- 
 sion shall ^#^iW*^'^ffi^^«^e (1) in which the tax 
 
■SVAE-PEOriTS AXD EXCESS-PEOFITS TAX. 521 
 
 (computed without benefit of this section) is high merely 
 because the corporation earned within the taxable year 
 a high rate of profit upon a normal invested capital, nor 
 (2) in which 50 per centum or more of the gross income 
 of the corporation for the taxable year (computed under 
 section 233 of Title II) consists of gains, profits, com- 
 missions, or other income, derived on a cost-plus basis 
 from a Government contract or contracts made between 
 April 6, 1917, and November 11, 1918, both dates in- 
 clusive. 
 
 Sec. 328. (a) In the cases specified in section 327 the computation ot 
 tax shall be the amount which bears the same ratio to the cases. '" "^^'^*'" 
 net income of the taxpayer (in excess of the specific ex- 
 emption of $3,000) for the taxable year, as the average 
 tax of representative corporations engaged in a like or 
 similar trade or business, bears to their average net in- 
 cbme (in excess of the specific exemption of $3,000) for 
 such year. In the case of a foreign corporation the tax 
 shall be computed without deducting the specific exemp- 
 tion of $3,000 either for the taxpayer or the representa- 
 tive corporations. 
 
 In computing the tax under this section the Commis- 
 sioner shall compare the taxpayer only with representa- 
 tive corporations whose invested capital can be satisfac- 
 torily determined under section 326 and which are, as 
 nearly as may be, similarly circumstanced with respect 
 to gross income, net income, profits per unit of business 
 transacted and capital employed, the amount and rate of 
 war profits or excess profits, and all other relevant facts 
 and circumstances. 
 
 (b) For the purposes of subdivision (a) the ratios 
 between the average tax and the average net income 
 of representative corporations shall be determined by 
 the Commissioner in accordance with regulations pre- 
 scribed by him with the approval of the Secretary. 
 
 In cases in which the tax is to be computed under this 
 section, if the tax as computed without the benefit of this 
 section is less than 50 per centum of the net income of 
 the taxpayer, the installments shall in the first instance 
 be computed upon the basis of such tax; but if the tax 
 so computed is 50 per centum or more of the net income, 
 the installments shall in the first instance be computed 
 upon the basis of a tax equal to 50 per centum of the net 
 income. In any case, the actual ratio when ascertained 
 shall be used in determining the correct amount of the 
 tax. If the correct amount of the tax when determined 
 exceeds 50 per centum of the net income, any excess of 
 the correct installments over the amounts actually paid 
 shall on notice and demand be paid together with interest 
 at the rate of | of 1 per centum per month on such excess 
 from the time the installment was due. 
 
 (c) The Commissioner shall keep a record of all cases Records. 
 in which the tax is determined in the nianner prescribed 
 
 in subdivision (a), co^tgkimtib^ti/lvsmssaMIBd address of 
 
522 WAB-PROFITS AND EXCESS-PROFITS TAX. 
 
 each taxpayer, the business in which engaged, the amount 
 of invested capital and net income shown by the return, 
 and the amount of invested capita,! as determined under 
 such subdivision. The Commissioner shall furnish a copy 
 of such record and other detailed information with re- 
 spect to such cases when required by resolution of either 
 House of Congress, without regard to the restrictions 
 contained in section 257. 
 
 Part VI. — Reorganizations. 
 
 Corporations. Qec. 330. That in the case of the reorganization, con- 
 solidation, or change of ownership after January 1, 1911, 
 of a trade or business now carried on by a corporation, 
 the corporation shall for the purposes of this title be 
 deemed to have been in existence prior to that date, and 
 the net income and invested capital of such predecessor 
 trade or business for all or any part of the prewar period 
 prior to the organization of the corporation now carry- 
 ing on such trade or business shall be deemed to have been 
 the net income and invested capital of such corporation. 
 individS?'^^ " ^^ ^^^^^ predecessor trade or business was carried on by 
 a partnership or individual the net income for the pre- 
 war period shall, under regulations prescribed by the 
 Commissioner with the approval of the Secretary, be as- 
 certained and returned as nearly as may be upon the same 
 basis and in the same manner as provided for corpora- 
 tions in Title II, including a reasonable deduction for 
 salary or compensation to each partner or the individual 
 for personal services actually rendered. 
 Corporations. j^ ^j^g pagg of f\^Q Organization as a corporation before 
 July 1, 1919, of any trade or business in which capital is 
 a material income-producing factor and which was pre- 
 viously owned by a partnership or individual, the net in- 
 come of such trade or business from January 1, 1918, .to 
 the date of such reorganization may at the option of the 
 individual or partnership be taxed as the net income of a 
 corporation is taxed under Titles II and III; in which 
 event the net income and invested capital of such trade 
 or business shall be computed as if such corporation had 
 been in existence on and after January 1, 1918, and the 
 undistributed profits or earnings of such trade or busi- 
 ness shall not be subject to the surtax imposed in section 
 211, but amounts distributed on or after January 1, 1918, 
 from the earnings of such trade or business shall be taxed 
 to the recipients as dividends, and all the provisions of 
 Titles II and III relating to corporations shall so far as 
 practicable apply to such trade or business: Provided, 
 That this paragraph shall not apply to any trade or busi- 
 ness the net income of which for the taxable year 1918 
 was less than 20 per centum of its invested capital for 
 such year: Provided fwther, That any taxpayer who 
 takes advantage of this paragraph shall pay the tax im- 
 posed by £»y»tfi»al0PQViiKfr-dfch(ii#^ct and by the first sub- 
 
WAK-PKOFITS AND EXCESS-PEOFITS TAX. 523 
 
 diTision of section 407 of the Revenue Act of 1916, as if 
 such taxpayer had been a corporation on and after Jan- 
 uary 1, 191^v TOth a capital stock having no par value. 
 
 If any asset of the trade or business in existence both 
 during th& taxable year and any prewar year is included 
 in the invested capital for the taxable year but is not in- 
 cluded in the invested capital for such prewar year, or 
 is valued on a different basis in computing the uivested 
 capital for the taxable year and such prewar year, re- 
 spectively, then under rules and regulations to be pre- 
 scribed by the Commissioner with the approval of the 
 Secretary such readjustments shall be made as are neces- 
 sary to place the computation of the invested capital for 
 such prewar year on the basis employed in determining 
 the invested capital for the taxable year. 
 
 Sec. 331. In the case of the reorganization, consolida- after^'^c'h^'s" 
 tion, or change of ownership of a trade or business, or i9i7. 
 change of ownership of property, after March 3, 1917, 
 if an interest or control in such trade or business or prop- 
 erty of 50 per centum or more remains in the same per- 
 sons, or any of them, then no asset transferred or received 
 from the previous owner shall, for the purpose of deter- 
 mining invested capital, be allowed a greater value than 
 would have been allowed under this title in computing 
 the invested capital of such previous owner if such asset 
 had not been so transferred or received : Providsd, That 
 if such previous owner was not a corporation,, then the 
 value of any asset so transferred or received shall be taken 
 at its cost of acquisition (at the date wlien acquired by 
 such previous owner with proper allowance for depre- 
 ciation, impairment, betterment or development, but no 
 addition to the original cost shall be made for any charge 
 or expenditure deducted as expense or otherwise on or 
 after March 1, 1913, in computing the net income of such 
 previous owner for purposes of taxation. 
 
 Part VII. — MiscELLANEOtrs. 
 
 Sec. 335. (a) That if a corporation (other than a per- whCT°eTs?a\*y!i^? 
 sonal service corporation) makes return for a fiscal year ^^^^ '"> i^iT. 
 beginning in 191T and ending in 1918, the tax for the 
 first taxable year under this title shall be the sum of: 
 (1) the same proportion of a tax for tlie entire period 
 computed under Title II of the Revenue Act of 1917 
 which the portion of such period falling within the 
 calendar year 1917 is of the entire period, and (2) the 
 same proportion of a tax for the entire period computed 
 under this title at the rates specified in subdivision (a) 
 of section 301 which the portion of such period falling 
 within the calendar year 1918 is of the entire period'. 
 Any amount heretofore or hereafter paid on account of 
 the tax imposed for such fiscal year by Title II of the 
 Revenue Act of 1917 shall be credited toward the pay- 
 ment of the tax imposed for such fiscal year by this title, 
 and if the amount so' p3^yf@ig'*5i$Wfeo^fl©irot of the tax 
 imposed by this title, the excess shall be credited or re- , 
 
524 WAE-PROFITS AND EXCESS-PROFITS TAX. 
 
 funded to the corporation in accordance with the pro- 
 visions of section 252. 
 vim°e'"flsca*i*yi!»? (^) ^^ ^ Corporation makes return for a fiscal year 
 b.gan in 1918. beginning in 1918 and ending in 1919, the tax for such 
 fiscal j'ear under this title shall be the sum of: (1) the 
 same proportion of a tax for the entire period computed 
 under subdivision (a) of section 301 which the portion of 
 such period falling within the calendar year 1918 is of 
 the entire period, and (2) the same proportion of a tax 
 for the entire period computed under subdivision (b) 
 or (c) of section 301 which the portion of such period 
 falling within the calendar year 1919 is of the entire 
 period. 
 Partnership or ((.) If a partnership Or a personal service Corporation 
 
 personal service \ ' .^j> ^ii-- • -initr n 
 
 corporation with maKes rctum tor a fiscal year beginning in 1917 and 
 ginning^ i" 1917- ending in 1918, it shall pay the same proportion of a 
 tax for the entire period computed under Title II of the 
 Eevenue Act of 1917 which the portion of such period 
 falling within the calendar year 1917 is of the entire 
 period. 
 KimJfng' ^a n^'r ^^7 ^^^ P^^^ ^7 ^ partnership or personal service cor- 
 january 1; 1918. poration for any period beginning on or after January 
 1, 1918, shall be immediately refunded to the partner- 
 ship or corporation as a tax erroneously or illegally col- 
 lected. 
 •iiiheV."'^"^ " S^*^- ^^^- That every corporation, not exempt under 
 section 304, shall make a return for the purposes of this 
 title. Such returns shall be made, and the taxes im- 
 paj-mentoftax. pQged by this title shall be paid, at the same times and 
 places, in the same manner, and subject to the same con- 
 ditions, as is provided in the case of returns and pay- 
 ment of income tax by corporations for the purposes 
 of Title II, and all the provisions of that title not inap- 
 plicable, including penalties, are hereby made applicable 
 to the taxes imposed by this title. 
 
 Acceptance of certificates of indebtedness in payment 
 of taxes due June 16, 1919. (T. D. 28.50.) 
 
 • Amended returns accepted so that taxable year of 
 affiliated corporations will coincide. (T. D. 2805.) 
 
 Acceptance of certificates of indebtedness in payment of 
 taxes due September 15, 1919, and December 15, 1919; 
 articles 1731 and 1732, Regulations No. 45, supplemented. 
 (T. D. 2907.) 
 
 Regulations governing inspection of returns. (T. D. 
 2961.) 
 
 Furnishing copies of returns. (T. D. 2962.) 
 
 tale"" of" minM, Sec. 337. That in the case of a bona fide sale of mines, 
 ''*'=• oil or gas wells, or any interest therein, where the prin- 
 
 cipal value of the property has been demonstrated by 
 prospecting or exploration and discoveiy work done by 
 the taxpayer, the portion of the tax imposed by this 
 title attributable to such sale shall not exceed 20 per 
 centum of the selling price of such property or interest. 
 
 Procedure tp, be, f Dllowed, by collectors with re.'spect to 
 c\a\mQl&mmjm M^QCmQ'&®\t; article 1036. Regulations 
 45, amended. (T. D. 2871.) 
 
Chapter Eighteen. 
 ESTATE TAX.^-2 
 
 [Title IT, act of February 24, 1919 (40 Stat., 1057).] 
 
 Sec. 
 
 400. Definitions. 
 
 401. Taxing percentages based on value 
 
 of net estate. 
 
 402. Determination of value of gross 
 
 estate. 
 
 403. Determination of value of net es- 
 
 tate. 
 
 404. Notice to collector that executor 
 
 has qualified or taken posses- 
 sion ; return by executor ; as- 
 sessment by Commissioner. 
 
 405. Return by collector in certain 
 
 cases. 
 
 Sec. 
 
 406. Due date of tax; extension of 
 
 time for payment ; interest in 
 case of delinquency. 
 
 407. Payment of tax ; refund of ex- 
 
 cess ; interest ; receipts. 
 
 408. Proceedings to compel payment 
 
 of tax ; reimbursement. 
 
 409. Lien of tax ; liability of trustee 
 
 or transferee ; rights of bona 
 fide purchasers. 
 
 410. False statement in notice or re- 
 
 turn ; failure to make disclosure 
 of information. 
 
 [Act of April 4, 1918 (40 Stat, 502, 505).] 
 
 6. Acceptance of Liberty bonds in i 
 payment of tax. | 
 
 TITLE IV.— ESTATE TAX. 
 
 Sec. 400. [Actof February U, 1919 {Ifi Stat., 1057).] 
 That when used in this title — 
 
 The term " executor " means the executor or adminis- Definitions. 
 trator of the decedent, or, if there is no executor or ad- 
 ministrator, any person who takes possession of any 
 property of the decedent ; and 
 
 The term "collector" means the collector of internal 
 revenue of the district in which was the domicile of the 
 decedent at the time of his death, or, if there was no 
 such domicile in the United States, then the collector 
 of the district in which is situated the part of the gross 
 estate of the decedent in the United States, or, if such 
 part of the gross estate is situated in more than one dis- 
 trict, then the collector of internal revenue of such dis- 
 trict as may be designated by the Commissioner. 
 
 Sec. 401. That (in lieu of the tax imposed by Title ^^ J^^^'J^'s per- 
 il of the Revenue Act of 1916, as amended, and in lieu on" vfiue oV net 
 of the tax imposed by Title IX of the Revenue Act of '^^***^- 
 1917) a tax equal to the sum of the following percent- 
 ages of the value of the net estate (determined as pro- 
 vided in section 403) is hereby imposed upon the trans- 
 fer of the net estate of every decedent djdng after the 
 passage of this Act, whether a resident or nonresident 
 of the United States: 
 
 1 per centum of the amount of the net estate not in 
 excess of $50,000; 
 
 > Spe RegTilations No. 37, revised. 
 
 2 Act of Septemljer 8, 1916 (see post, p. 793) ; act of March 3, 1917 (see 
 post, p. 845) ; act of October 3, 1917 (see post, p. 849). 
 
 Digitized by Microsoft® 
 
 525 
 
526 
 
 ESTATE TAX. 
 
 2 per centum of the amount by which the net estate 
 exceeds $50,000 and does not exceed $150,000; 
 
 3 per centum of the amount by which the net estate 
 exceeds $150,000 and does not exceed $250,000; 
 
 4 per centum of the amount by which the net estate 
 exceeds $250,000 and does not exceed $450,000; 
 
 6 per centum of the amount by which the net estate 
 exceeds $450,000 and does not exceed $750,000; 
 
 8 per centum of the amount by which the net estate 
 exceeds $750,000 and does not exceed $1,000,000 ; 
 
 10 per centum of the amount by which the net estate 
 exceeds $1,000,000 and does not exceed $1,500,000; 
 
 12 per centum of the amount by which the net estate 
 exceeds $1,500,000 and does not exceed $2,000,000; 
 
 14 per centum of the amount by which the net estate 
 exceeds $2,000,000 and does not exceed $3,000,000; 
 
 16 per centum of the amount by which the net estate 
 exceeds $3,000,000 and does not exceed $4,000,000; 
 
 18 per centum of the amount by which the net estate 
 exceeds $4,000,000 and does not exceed $5,000,000; 
 
 20 per centum of the amount by which the net estate 
 exceeds $5,000,000 and does not exceed $S,000,000; 
 
 22 per centum of the amount by which the net estate 
 exceeds $8,000,000 and does not exceed $10,000,000 ; and 
 
 25 per centum of the amount by which the net estate 
 exceeds $10,000,000. 
 
 The taxes imposed by this title or by Title II of the 
 Revenue Act of 1916 (as amended by the Act entitled 
 " An Act to provide increased revenue to defray the ex- 
 persons serv- peuses of the increased appropriations for the Army 
 ing in military and Navy aud the extensions of fortifications, and for 
 or naval force.. ^^^^^ purposcs," approved March 3, 1917) or by Title 
 IX of the Revenue Act of 1917, shall not apply to the 
 transfer of the net estate of anj' decedent who has died 
 or may die while serA'ing in the military or naval forces 
 of the United States in the present war or from injuries 
 Determination received Or disease contracted while in such service, and 
 estate."* "' ^™^' ^^J ^^^^ tax Collected upon such transfer shall be re- 
 funded to the executor. 
 
 Sec. 402. That the value of the gross estate of the de- 
 cedent shall be determined by including the value at the 
 time of his death of all property, real or personal, tangi- 
 ble or intangible, wherever situated — 
 
 (a) To the extent of the interest therein of the de- 
 cedent at the time of his death which after his death is 
 subject to the payment of the charges against his estate 
 and the expenses of its administration and is subject to 
 distribution as part of his estate ; 
 
 (b) To the extent of any interest therein of the sur- 
 viving spouse, existing at the time of the decedent's death 
 as dower, courtesy, or by virtue of a statute creating an 
 estate in lieu of dower or courtesy ; 
 
 (c) To the .extent of any interest therein of which the 
 decedent Wm¥mf^M^ffiMSftrmsier, or with respect 
 
ESTATE TAX. 527 
 
 to wMeh he has at any time created a trust, in contempla- 
 tion of or intended to take effect in possession or enjoy- 
 ment at or after his death {whether smeh transfer or 
 trust is made or created before or after the passage of 
 this Act), except in case of a bona fide sale for a fair 
 consideration in money or money's worth. Any transfer 
 of a material part of his property in the nature of a final 
 disposition or distribution thereof, made by the decedent 
 within two years prior to his death without such a con- 
 sideration, shall, unless shown to the contrary, be deemed 
 to have been made in contemplation of death within the 
 meaning of this title ; 
 
 (d) To the extent of the interest therein held jointly 
 or as tenants in the entirety by the decedent and any 
 other person, or deposited in banks or other institutions 
 in their joint names and payable to either or the sur- 
 vivor, except such part thereof as may be shown to have 
 originally oelonged to such other person and never to 
 have belonged to the decedent ; 
 
 (e) To the extent of any property passing under a 
 general power of appointment exercised by the decedent 
 (1) by will, or (2) by deed executed in contemplation 
 of, or intended to take effect in possession or enjoyment 
 at or after, his death, except in ease of a bona fide sale 
 for a fair consideration in money or money's worth ; and 
 
 (f) To the extent of the amount receivable by, the ex- 
 ecutor as insurance under policies taken out by the de- 
 cedent upon his own life^ and to the extent of the excess 
 over $40,000 of the amount receivable by all other bene- 
 ficiaries as insurance under policies taken out by the de- 
 cedent upon his own life. 
 
 Sec. 403. That for the purpose of the tax the value of ^j''^^ 
 the net estate shall be determined — ^ estate. 
 
 (a) In the case of a resident, by deducting from the 
 value of the gross estate — 
 
 (1) Such amounts for funeral expenses, administra^ 
 tion expenses, claims against the estate, unpaid mort- 
 gages, losses incurred during the settlement of the estate 
 arising from fires, storms, shipwreck, or other casualty, 
 or from theft, when such losses are not compensated for 
 by insurance or otherwise, and such amounts reasonably 
 required and actually expended for the support during 
 the settlement of the estate of those dependent upon the 
 decedent, as are allowed by the laws of the jurisdiction, 
 whether within or without the United States, under 
 which the estate is being administered, but not including 
 any income taxes upon income received after the death of 
 the decedent, or any estate, succession, legacy, or inheri- 
 tance taxes ; 
 
 (5) An amount equal to the value at the time of the 
 
 decedent's death of any property, real, personal, or mixed, 
 
 which can be identified as having been received by the 
 
 decedent as a share in the estate of any person who died 
 
 Digitized by Microsoft® 
 
 ermination 
 value of net 
 
528 
 
 ESTATE TAX. 
 
 within five years prior to the death of the decedent, or 
 which can be identified as having been acquired bj the 
 decedent in exchange for property so received, if an 
 estate tax under the Revenue Act of 1917 or under this 
 Act was collected from such estate, and if such property 
 is included in the decedent's gross estate; 
 
 (3) The amount of all bequests, legacies, • devises, or 
 gifts, to or for the use of the United States, any State, 
 Territory, any political subdivision thereof, or the Dis- 
 trict of Columbia,, for exclusively public piirposes, or to 
 or for the use of any corporation organized and operated 
 exclusively for religious, charitable, scientific, literary, or 
 educational purposes, including the encouragement of art 
 and the prevention of cruelty to children or animals, no 
 part of the net earnings of which inures to the benefit of 
 any private stockholder or individual, or to a trustee or 
 trustees exclusively for such religious, charitable, scien- 
 tific, literary, or educational purposes. This deduction 
 shall be made in case of the estates of all decedents who 
 have died since December 31, 1917; and 
 
 (4) An exemption of $50,000 ; 
 
 (b) In the case of a nonresident, by deducting from 
 the value of that part of his gross estate which at the 
 time of his death is situated in the United States — 
 
 (1) That proportion of the deductions specified in 
 paragraph (1) of subdivision (a) of this section which 
 the value of such part bears to the value of his entire 
 gross estate, wherever situated, but in no case shall the 
 amount so deducted exceed 10 per centum of the value 
 of that part of his gross estate which at the time of his 
 death is situated in the United States ; 
 
 (2) An amount equal to the value at the time of the 
 decedent's death of any property, real, personal, or 
 mixed, which can be identified as having been received 
 by the decedent as a share in the estate of any person who 
 died within five years prior to the death of the decedent, 
 or which can be identified as having been acquired by the 
 decedent in exchange for property so received, if an 
 estate tax under the Eevenue Act of 1917 or under this 
 Act was collected from such estate, and if such property 
 is included in that part of the decedent's gross estate 
 which at the time of his death is sitiiated in the United 
 States; and 
 
 (3) The amount of all bequests, legacies, devises, or 
 gifts, to or for the use of the United States, any State, 
 Territory, any political subdivision thereof, or the Dis- 
 trict of Columbia, for exclusively public purposes, or to 
 or for the use of any domestic corporation organized and 
 operated exclusively for religious, charitable, scientific, 
 literary, or educational purposes, including the encour- 
 agement of art and the prevention of cruelty to children 
 or animals, no part of the net earnings of which inures 
 to the ben^tg^^f a^^^lJ^vate s^holder or individual, or 
 
ESTATE TAX. 529 
 
 to a trustee or trustees exclusively for such religious, 
 charitable,'^ scientific, literary, or educational purposes 
 within the United States. This deduction shall be made 
 in case of the estates of all decedents who have died since 
 December 31, 1917 ; and 
 
 No deduction shall be allowed in the case of a nonresi- 
 dent unless the executor includes in the return required 
 to be filed under section 404 the value at the time of his 
 death of that part of the gross estate of the nonresident 
 not situated in the United States. 
 
 For the purpose of this title stock in a domestic cor- 
 poration owned arid held by a nonresident decedent, and 
 the amount receivable as insurance upon the life of a non- 
 resident decedent where the insurer is a domestic corpo- 
 ration, shall be deemed property within the United 
 ' States, and any property of which the decedent has made 
 a transfer or with respect to which he has created a trust, 
 within the meaning of subdivision (c ) of section 402, shall 
 be deemed to be situated in the United States, if so situ- 
 ated either at the time of the transfer or the creation of 
 the trust, or at the time of the decedent's death. 
 
 In the case of any estate in respect to which the tax 
 under existing law has been paid, if necessary to allow 
 the benefit of the deduction under paragraph (3) of sub- 
 division (a) or (b) the tax shall be redetermined and 
 any excess of tax paid shall be refunded to the executor. 
 
 Sec. 404. That the executor, within sixty days after jec^,' that" exec- 
 qualifying as such, or after coming into possession of utor has qualified 
 any property of the decedent, whichever event first oc- sfonf"" ^°*^^^" 
 curs, shall give written notice thereof to the collector. 
 The executor shall also, at such times and in such man- ^^^^^1" " " ^^ 
 ner as may be required by regulations made pursuant to 
 law, file with the collector a return under oath in dupli- 
 cate, setting forth (a) the value of the gross estate of 
 the decedent at the time of his death, or, in case of a 
 nonresident, of that part of his gross estate situated in 
 the United States; (b) the deductions allowed under sec- 
 tion 403; (c) the value of the net estate of the decedent 
 as defined in section 403'; and (d) the tax paid or pay- 
 able thereon ; or such part of such information as may at 
 the time be ascertainable and such supplemental data as 
 may be necessary to establish the correct tax. 
 
 Return shall be made in all cases where the gross estate 
 at the death of the decedent exceeds $50,000, and in the 
 case of the estate of every nonresident any part of whose 
 gross estate is situated in the United States. If the ex- 
 ecutor is unable to make a complete return as to any part 
 of the gross estate of the decedent, he shall include in 
 his return a description of such part and the name of 
 every person holding a legal or beneficial interest therein, 
 and upon notice from the collector such person shall in 
 like manner make a return as to such part of the gross 
 
 140184°— 20 34 
 
 Digitized by Microsoft® 
 
530 ESTATE TAX. 
 
 comSkfrnr. ^'' ®state. Tlie Commissioner shall make all assessments of 
 the tax under the authority of existing administratiye ; 
 special and general provisions of law relating to the as- : 
 sessment and collection of taxes. 
 
 iector"in certain S^^' 405. That if no administration is granted upon 
 
 cases. the estate of a decedent, or if no return is filed aa pro- 
 
 vided in section 404, or if a return contains a false or in- 
 correct statement of a material fact, the collector or 
 deputy collector shall make a return and the Commis- 
 sioner shall assess the tax thereon. 
 
 ^^ Due date of Q^^ 4Qg_ rpj^^^^ ^-^^ ^^ ^^jl be due one year after the 
 
 decedent's death; but in any case where the Commis- 
 sioner finds that payment of the tax within one year after 
 the decedent's death would impose undue hardship upon 
 time^'^for"" pa°y- the estate, he may grant an extension of time for the pay- 
 ment- ment of the tax for a period not to exceed three years 
 from the due date. If the tax is not paid within one 
 of^ddinquency!'^ jcar and 180 days after the decedent's death, interest at 
 the rate of 6 per centum per annum from the expiration 
 of one year after the decedent's death shall be added as 
 part of the tax. 
 Payment ottax. g^j^. 407. That the executor shall pay the tax to the 
 collector or deputy collector. If the amount of the tax 
 can not be determined, the payment of a si\m of money 
 sufficient, in the opinion of the collector, to discharge the 
 tax shall be deemed payment in full of the tax, except as 
 ce^.''""*^ °* '''■ in this section otherwise provided. If the amovmt so 
 paid exceeds the amount of the tax as finally determined, 
 the Commissioner shall refund such excess to the execu- 
 tor. If the amount of the tax as finally determined ex- 
 ceeds the amount so paid, the collector shall notify the 
 executor of the amount of such excess and demand pay- 
 interest, ment thereof. If such excess part of the tax is not paid 
 within thirty days after such notification, interest shall 
 be added thereto at the rate of 10 per centum per annum 
 from the expiration of such thirty days' period until 
 paid, and the amount of such excess shall be a lien upon 
 the entire gross estate, except such part thereof as may 
 have been sold to a bona fide purchaser for a fair consid-, 
 eration in money or money's worth. 
 Receipts. rpj^g coUcctor shall grant to the person paying the tax 
 duplicate receipts, either of which shall be sufficient evi- 
 dence of such payment, and shall entitle the executor to 
 be credited and allowed the amount thereof by auy court 
 having jurisdiction to audit or settle his accounts. 
 
 Eeceipt of Liberty bonds and Victory notes in payment 
 of tax. (T. Ds. 2905, 2904, 2898, 2878, 2802, 2705.) 
 
 comp°ehp'aymen? Sec. 408. That if the tax herein imposed is not paid 
 of tax. within 180 days after it is due, the collector shall, unless 
 
 there is reasonable cause for further delay, proceed to 
 collect the tax under the provisions of general law, or 
 commence appropriate proceedings in any court of the 
 United Stg^^^ ji^^Qf^'Q^(^G United States, to sub- 
 
ESTATE TAX. 
 
 531 
 
 I ject the property of the decedent to be sold under the 
 [ jilidgiQent or decree of the court. From the proceeds of 
 i SQch sale the amount ©f the tax, together with the costs 
 : and expenses of every description to be; aEowed by the 
 ! court, shall be first paid, and the balance shall be de- 
 ! posited according to the order of the court, to be paid 
 J under its direction to the perscai entitled thereto. 
 
 If the. tax or any part thereof is paid by, or collected 
 \ out- oi that part of the estate passing to or in the pos- 
 ssssioB of, any person other than the executor in his 
 capacity as such, such person shall be entitled to reim- 
 bursement out of any part of the estate still undistributed 
 or by a just and equitable contribution by the persons 
 whose interest in the estate of the decedent would have 
 been reduced if the tax had been paid before the distribu- 
 tion of the estate or whose interest is subject to equal or 
 prior liability for the payment of taxes, debts, or other 
 charges, against the- estate, it being the purpose and intent 
 of this title that so far as is practicable and unless other^ 
 wise directed by the will of the decedent the tax shall be 
 paid out of the estate before its distribution. If amy part 
 of the gro^ estate consists of proceeds of policies of in- 
 surance, upon the life of the deeedent receivable by a 
 beneficiary other than thet executor, the executor shall be 
 entitled to recover from such beneficiary such portion of 
 the total tax paid as the proceeds, in excess of $40,000^ of 
 such policies bear to the net estate. If there is more than 
 one such beneficiary the executor shall be entitled to re- 
 cover from such beneficiaries in the sams ratio. 
 
 Sec. 409. That unless the tax is sooner paid ia full, it 
 shall be a li^n for ten years upon the gross estate of the 
 decedent,, except that suck part of the gross estate as is 
 used for the payment of charges against the estate and 
 expenses of its administration, allowed by any court hav- 
 ing jurisdiction thereof, shall be divested of such lien. If 
 the Conamission€r is satisfied that the tax liability of an 
 estate has been fully discharged or provided for, he may, 
 under regulations prescribed by him with the approval of 
 the Secretary, issue his certificate releasing any or all 
 property of such estate from the lien herein imposed. 
 
 If (a) the decedent makes a transfer of, or creates a ^^^^ 
 trust with respect to, any property in contemplation of or tee.' 
 intended to take effect in possession or enjoyment at or 
 after his death (except in the case of a bona fide sale for 
 a fair consideration in money or money's worth) or (b) 
 if insurance passes under a contract executed by the de- 
 cedent in favor of a specific beneficiary, and if in either 
 case the tax in respect thereto is not paid when due, then 
 the transferee, trustee, or beneficiary shall be personally 
 liable for such tax, and such property, to the extent of the 
 decedent's interest therein at the time of such transfer, or 
 to the extent of such beneficiary's interest under such con- 
 tract of insurance, shall be subject to a like lien equal to 
 Digitized by Microsoft® 
 
 Reunbursement. 
 
 Lien of tax. 
 
 Liability o I 
 transferee ortrua- 
 
532 
 
 ESTATE TAX, 
 
 jid" purcha'sera."* ^^^ amount of such tax. Any part of such property sold 
 by such transferee or trustee to a bona fide purchaser for 
 a fair consideration in money or money's worth shall be 
 divested of the lien and a like lien shall then attach to all 
 the property of such transferee or trustee, except any 
 part sold to a bona fide purchaser for a fair consideration 
 in money or money's worth. 
 ment* 'in* ^ice ^^^- ^10. That whoever knowingly makes any* false 
 o) return. statement in any notice or return required to be filed 
 
 under this title shall be liable to a penalty of not exceed- 
 ing $5,000, or imprisonment not exceeding one year, or 
 both. 
 ma^e* ' drsciosure Whoever fails to compljr with any duty imposed upon 
 of information, him by section 404, or, having in his possession or control 
 any record, file, or paper, containing or supposed to 
 contain any information concerning the estate of the de- 
 cedent, or, having in his possession or control aiiy prop- 
 erty comprised in the gross estate of the decedent, fails to 
 exhibit the same upon request to the Commissioner or 
 any collector or law officer of the United States, or his 
 duly authorized deputy or agent, who desires to examine 
 the same in the performance of his duties under this title, 
 shall be liable to a' penalty of not exceeding $500, to be 
 recovered, with costs of suit, in a civil action in the name 
 of the United States. 
 Libert7*bo"nds i".! Sec. 6. [Aof of April ^, 1918 UO Stat, 502, 506), 
 rayment oi tax. amending act of September 2^, 1917 {Jfi Stat., 288).'] 
 That any bonds of the United States bearing interest at 
 a higher rate than four per centum per annum (whether 
 issued under section one of this Act or upon conversion 
 of bonds issued under this Act or under said Act ap- 
 proved April twenty-fourth, nineteen hundred and seven- 
 teen), which have been owned by any person continu- 
 ously for at least six months prior to the date of his 
 death, and which upon such date constitute part of his 
 estate, shall, under rules and regulations prescribed by 
 the Secretary of the Treasury, be receivable by the 
 United States at par and accrued interest in payment of 
 any estate or inheritance taxes imposed by the United 
 States, under or by virtue of any present or future law 
 upon such estate or the inheritance thereof. 
 
 Regulations relating to receipt of Liberty bonds for estate 
 taxes. (T. D. 2802.) 
 
 United States bonds bearing Interest at a higher rate 
 than 4 per cent to be accepted at par and accrued Inter- 
 est in payment of estate tax. (T. D. 2705.) 
 
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Sec. 
 
 502. Collection of tax ; monthly re- 
 turns ; refunds ; time of pay- 
 ment ; penalty. 
 
 Chapter Nineteen. 
 TAX ON TRANSPORTATION AND OTHER FACILITIES.^- ^ 
 
 [Title V, act of February 24, 1919 (40 Stat, 1057).] 
 
 Sec. 
 
 500. Rates of tax on freight, passenger, 
 
 express, and oil transportation, 
 a nd on telegraph, etc., messages. 
 
 501. Tax payable by whom ; purchase 
 
 of mileage books or payment of, 
 cash fare before November 1, 
 1917; ticket bought and par- 
 tially used before November 1, 
 1917 ; agency rendering services. 
 
 TITLE v.— TAX ON TRANSPORTATION AND 
 
 OTHER FACILITIES. 
 
 Sec. 600. [Act of February %h, 1919 {JfO Stat. 1057).] 
 That from and after April 1, 1919, there shall be levied, 
 assessed, collected, and paid, in lieu of the taxes imposed 
 by section 500 of the Revenue Act of 1917 — 
 
 (a) A tax equivalent to 3 per centum of the amount ?*A^%°' *"" 
 paid for the transportation on or after such date, by rail tatlon. ""^°''" 
 or water or by any form of mechanical motor power 
 
 when in competition with carriers by rail or water, or 
 property by freight transported from one point in the 
 United States to another; and a like tax on the amount 
 paid for such transportation within the United States 
 of property transported from a point without the United 
 States to a point within the United States; 
 
 lu-transit privileges and property exported ; articles 13 
 and 15, Regulations No. 49, as amended by T. D. 2889, 
 further amended. (T. Ds. 2917, 2928.) 
 
 Article 21, Regulations No. 49, relating to temporary 
 exemption certificates, amended. (T. D. 2978. ) 
 
 (b) A tax of 1 cent for each 20 cents or fraction ^^^If^^^ '''*'^' 
 thereof of the amount paid to any person for the :fcrans- ^°' * '""" 
 portation on or after such date, by rail or water or by 
 
 any form of mechanical motor power when in competi- 
 tion with express by rail or water, of any package, parcel, 
 or shipment, by express, transported from one point in 
 the United States to another; and a like tax on the 
 amount paid for such transportation within the United 
 States of property transported from a point without the 
 United States to a point within the United States ; 
 
 (c) A tax equivalent to 8 per centum of the amount Passenger trans- 
 paid for the transportation on or after such date of per- p°'''**'°"- 
 sons by rail or water, or by any form of mechanical 
 
 1 See RefTulations No, 49, 
 
 = Act of October 3, 1917, post, page 849. 
 
 Digitized by Microsoft® 533 
 
534 TAX ON TKANSPOETATION AND OTHEK FACILITIES. 
 
 motor power on a regular established line when in com- 
 petition with carriers by rail or water from one point 
 in the United States to another or to any point in Canada 
 or Mexico, where the ticket or order therefor is sold or 
 issued in the United States, not including the amount 
 paid for commutation or season tickets for trips less than 
 thirty miles, or for transportation the fare for which 
 does not exceed 42 cents: Provided, That where such. 
 water transportation lines are in competition between 
 American ports with foreign water transportation lines 
 from adjacent' foreign ports, the tax imposed under tliis 
 subdivision on amounts paid for water transportation 
 between American ports shall not exceed the amount of 
 the transportation tax to which such foreign water 
 transportation lines are subjected by their government 
 corresponding to this tax ; 
 etc^r'i'n "parlor (d) A tas equivalent to 8 per centum of the amount 
 cars, etc,. paid for seats, berths, and staterooms in parlor cars, 
 
 sleeping cars, or on vessels, used on or after such date 
 in connection with transportation upon which tax is 
 imposed by subdivision (c) ; 
 of^ofi"T/**pip? (e) A tax equivalent to & per centum of the amount 
 "oe- paid for the transportation on or after such date of oil 
 
 by pipe line; 
 phmeTrt??"/^ (f ) 111 the case of each telegraph,, telephone, cable, or 
 sages." ' radio, dispatch, message, or conversation, which origi- 
 nates on or after such date within the United States, 
 and for the transmission of which the charge is more 
 than 14 cents and not more than 50 cents, a tax of 5 
 cents ; and if the, charge is more than 50 cents, a tax of 
 10 cents : Provided, That only one payment of such tax 
 shall be required, notwithstartding the lines or stations 
 of one or more persons are used for the transmission of 
 such dispatch, message, or conversation ; and 
 Leased wire, /„\ ^ ^^^ equivalent to 10 per centum of the amount 
 
 etc., service. >v' a •* -t , , , ^ i iii 
 
 paid after such date to any telegraph or telephone com- 
 pany for any. leased wire or talking circuit special serv- 
 ice furnished after such date. This subdivision shall 
 not apply to the amount paid for so much of such serv- 
 ice as is utilized (1) in the collection and disseminatioa 
 of news through the public press, or (2) in the conduct, 
 by a common carrier or telegraph or telephone company, 
 of its business as such; 
 
 Exemptions. (h) No tax shall be imposed under this section upou 
 any payment received for services rendered to the United 
 States or to any State or Territory or the District of 
 Columbia. The right to exemption under this subdivi- 
 sion shall be evidenced in such manner as the Commis- 
 sioner, with the approval of the Secretary, may by regu- 
 lation prescribe. 
 
 Tax payable Qec. 501. (a) That the taxes imposed by section 500 
 by w om. ^^\\ be paid by the person paying for the services or 
 
 facilities rendered. 
 
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TAX ON TEANSPOBTATION AND OTHER FACILITIES. 535 
 
 (b) If a mileage book used for transportation or ac- „i^ea''?*book or 
 commodation was purchased before November 1, 1917, paj^fnt xrf c^h 
 or if cash fare is paid, the tax imposed by section 500 vember^irisn"" 
 shall be collected from the person presenting the mileage 
 
 book, or paying the cash fare, bv the conductor or other 
 agent, when presented for such transportation or ac- 
 commodation, and the amount so collected shall be paid 
 to the United States in such manner and at such times 
 as the Commissioner, with the approval of the Secre- 
 tary, may prescribe; if a ticket (other than a mileage Tickets bough* 
 book) was bought and pa'rtially used before November Said ''befOTr'Nii^ 
 1, 1917, it shall not be taxed, but if bought but not so ^em^er i, 1917. 
 used before section 500 takes effect, it shall not be valid 
 for passage until the tax has been paid and such pay- 
 ment evidenced on the ticket in such manner as the 
 Commissioner, with the approval of the Secretary, may 
 by regulation prescribe. 
 
 (c) The taxes imposed by section 500 shall apply to all iu^s^l^l^^'^"' 
 services or facilities specified in such section when ren- 
 dered for hire, whether or not the agency rendering them 
 
 is a common carrier. In case a carrier (other than a poj^jj^'^^^ ^^'g^^^g 
 pipe line) principally engaged in rendering transporta- owned by itseii. 
 tion services or facilities for hire does not, because of its 
 ownership of the goods transported, or for any other 
 reason, receive the amount which as a carrier it would 
 otherwise charge, such carrier shall pay a tax equivalent 
 to the tax which would be imposed upon the transporta- 
 tion of such goods if the carrier received payment for 
 such transportation, such tax, if it can not be computed 
 from actual rates or tariffs of the carrier, to be computed 
 on the basis of the rates or tariffs of other carriers for 
 like services as determined by the Commissioner. In the ice"'for^°wre ^by 
 ease of any carrier (other than a pipe line) the principal carrier, 
 business of which is to transport goods belonging to it 
 on its own account and which only incidentally renders 
 services for hire, the tax shall apply to such services or 
 facilities only as are actually rendered by it for hire. 
 Nothing in this or the preceding section shall be con- ^ f'''""o'?^^o^'°" 
 strued as imposing a tax (1) upon the transportation of necessary for use 
 any commodity which is necessary for the use of the car- n^ss.^'"^"^^ ''"^'' 
 rier in the conduct of its business as such and is intended 
 to be so used or has been so used; or (2) upon the trans- 
 portation of company material transported by one car- 
 rier, which constitutes a part of a railroad system, for 
 another carrier which is also a part of the same system. 
 
 (d) The tax imposed by subdivision (e) of section 500 ^j '^'ofi"^^""**'!"^ 
 shall apply t6 all transportation of oil by pipe line. In une. ' ^ ^'^° 
 case no charge for transportation is made, by reason of 
 ownership of the commodity transported, or for any 
 
 other reason, the person transporting by pipe line shall 
 pay a tax equivalent to the tax which would be imposed 
 if such person received payment for such transportation, 
 and if the tax can not be computed from actual bona fide 
 
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536 TAX ON TEANSPOETATION AND OTHEK FACILITIES. 
 
 rates or tariffs, it shall be computed (1) on the basis of 
 the rates or tariffs of other pipe lines for like services, 
 as determined by the Commissioner, or (2) if no such 
 rates or tariffs exist, on the basis of a reasonable charge 
 for such transportation, as determined by the Commis-' 
 sioner. 
 ta^montSy le- ^^^* ^^' That oach persou receiving any payments 
 turiifi. referred to in section 600 shall collect the amount of the 
 
 tax, if any, imposed by such section from the person 
 maliing such payments, and shall make monthly returns 
 under oath, in duplicate, and' pay the taxes so collected 
 and the taxes imposed upon it under subdivision (c) or 
 (d) of section 501 to the collector of the district in which 
 the principal office or place of business is located. ^ 
 
 biiu^'o"^ Mng" -^o carrier collecting the taxes imposed by subdivision 
 etc. ' (a) or (b) of section 500 shall be required to list, the 
 
 amount or such tax separately in ^ny bill of; lading, 
 freight or express receipt, or other similar document, if 
 the total amount of the transportation charge and the 
 tax is stated therein. 
 Refunds. ^jjy person making a refund of any payment upon 
 
 which tax is collected under this section may repay there- 
 with the amount of the tax collected on such payment ; 
 and the amount so repaid may be credited against 
 amounts included in any subsequent monthly return. 
 goTCrning"**?"- ^he rctums required under this section shall contain 
 turns. such information, and be made at such times and itt such 
 
 manner, as the Commissioner, with the approval of the 
 Secretary, may by regulation prescribe. 
 entTpenli^T The tax shall, without assessment by the Commissioner 
 or notice from the collector, be due and payable to the 
 collector at the time so fixed for filing the return. If the 
 tax is not paid when due, there shall be added as part of 
 the tax a penalty of 5 per centum, together with interest 
 at the rate of 1 per centum for each full month, from the 
 time when the tax became due. 
 
 ment ; 
 
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Chapter Twenty. 
 TAX ON INSURANCE.!. ^ 
 
 [Title V, act of February 24, 1919 (40 Stat, 1057.] 
 
 Sec. 
 
 503. Rates of tax imposed on issuance 
 of insurance policies; exemp- 
 tions. 
 
 Sec. 
 
 504. Montlily returns ; payment of tax ; 
 penalty for delinquency. 
 
 TITLE v.— TAX ON * * * INSURANCE. 
 
 on ISEU- 
 
 insuraiice 
 
 -Sec .503. lAct of- FehruaryU, 1919 {Ifi Stat. 1057):} ^J^^l^l 
 Tha.t tvom. and after April 1, 1919, there shall be levied, policies. 
 assessed, collected, and paid, in lieu of the taxes imposed 
 by section 504 of the Revenue Act of 1917, the following 
 taxes on the issuance of insurance policies, including, in 
 the case of policies issued outside the United States (ex- 
 cept those taxable under subdivision 15 of Schedule A of 
 Title XI), their delivery within the United States by 
 any agent or broker, whether acting for the insurer or the 
 insured ; such taxes to be paid by the insurer, or by such 
 agent or broker : 
 
 (a) Life insurance : A tax equivalent to 8 cents on each j^^^nce^p o n- 
 $100 or fractional part thereof of the amount for which oies. 
 any life is insured under any policy of insurance, or other 
 instrument, by whatever name the same is called : Pro- 
 vided, That on all policies for life insurance only by 
 which a life is insured not in excess of $500, issued on 
 the industrial or weekly or monthly payment plan of 
 insurance, the tax shall be 40 per centum of the amount 
 of the first weekly premium or 20 per centum of the 
 amount of the first monthly premium, as the case may 
 be : Provided further, That on policies of group life in- 
 surance, covering groups of not less than 25 lives in the 
 employ of the same person, for the benefit of persons 
 other than the employer, the tax shall be equivalent to 4 
 cents on each $100 of the aggregate amount for which the 
 group policy is issued and of any net increase in the 
 amount of the insurance under such policy: And pro- 
 vided further, That on all policies covering life, health, 
 and accident insurance combined in one policy by which 
 a life is insured not in excess of $500, issued on the indus- 
 trial, or weekly or monthly payment plan of insurance, 
 the tax shall be 40 per centum of the amount of the first - 
 weekly premium or 20 per centum of the amount of the 
 first monthly premium, as the case may be ; 
 
 1 See Regulations No. ,58. 
 
 " Act of October 3, 1917, post, page 849. 
 
 637 
 
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538 
 
 TAX ON" INSURANCE. 
 
 casualty 
 ance. 
 
 ma^nI,°'Mand° (^) Marine, inland, and fire insurance: A tax equiva- 
 tnce "r ■ '"™'' ^^^^ ^° ^ *^®^^* ^^ ^'^^'^ dollar or fractional part thereof of 
 ance po icies. ^j^^ premium charged under each policy of insurance or 
 other instrument by whatever name the same is called 
 whereby insurance is made or renewed upon property of 
 any description (including rents or profits),- whether 
 against peril by sea or inland waters, or by fire or light- 
 ning, or other peril ; 
 Rate of tax on ((.) Casualty insurance: A tax equivalent to 1 cent on 
 each dollar or fractional part thereof of the premium 
 charged under each policy of insurance or obligation of 
 the nature of indemnity for loss, damage, or liability 
 (except bonds and policies taxable under subdivision 2 of 
 schedule A of Title XI) issued or executed or renewed by 
 any person transacting the business of employer's lia- 
 bility, workmen's compensation, accident, health, tor- 
 nado, plate glass, steam boiler, elevator, burglary, auto- 
 matic sprinkler, automobile, or other branch of insurance 
 (except life insurance, and'insurance described and taxed 
 in the preceding subdivision) : Provided, That in case of 
 policies of insurance issued on the industrial or weekly 
 or monthly payment plan the ta? shall be 40 per centum 
 of the amount of the first weekly premium or '20 per 
 centum of the amount of the first monthly premium, as 
 the case may be ; 
 
 (d) Policies issued by any corporation enumerated in 
 section 231, and policies of reinsurance, shall be exempt 
 from the taxes imposed by this section. 
 
 Article 6, Regulations No. 58, relating to insurance issued 
 abroad, amended. (T. D. 2938.) 
 
 ■«• Sec. 504. That every person issuing policies of insur- 
 ance upon the issuance of which a tax is imposed by sec- 
 tion 503 shall make monthly returns under oath, in dupli- 
 cate, and pay such tax to the collector of the district in 
 which the principal oiEce or place of business of such per- 
 son is located. Such returns shall contain such informa- 
 tion and be made at such times and in such manner as the 
 Commissioner, with the approval of the Secretary, may 
 by regulation prescribe, 
 o ' The tax shall, without assessment by the Commissioner 
 or notice from the collector, be due and payable to the 
 collector at the time so fixed for filing the return. If the 
 tax is not paid when due, there shall be added as part of 
 the tax a penalty of 5 per centum, together with interest 
 at the rate of 1 per centum for each full month, from the 
 time when the tax became due. 
 
 Exemptions. 
 
 Monthly 
 turns. 
 
 Payment 
 tax : penalty. 
 
 Digitized by Microsoft® 
 
Chapter Twentt-onb. 
 
 ADMISSIONS AND DUES.^- = 
 
 [Title VIII. act of February 24, 1919 (40 Stat., 1057).] 
 
 See. 
 
 801. Rate of tax on dues or member* 
 ship fees ; exemptions ; life 
 memberships. 
 
 802. Collection of taxes ; returns and 
 payments. _ 
 
 Rate of tax on 
 admissions. 
 
 Sec. 
 
 800. Rate of tax on admissions; free 
 admissions or reduced rates; 
 tickets sold at hotels, etc. ; ex- 
 cess of regular price; perma- 
 nent use of box or seat ; roof gar- 
 dens or cabarets, etc. ; exemp- 
 tions ; " admission " defined ; 
 printing price on ticket. 
 
 TITLE VHI.— TAX ON ADMISSIONS AND DUES. 
 
 Sec. 800. [Act of February U, 1919 {Ifi Stat., 1057).] 
 (a) That from and after April 1, 1919, there shall be 
 levied, assessed, collected, and paid, m lieu of the taxes 
 imposed by section 700 of the Revenue Act of 1917 — 
 
 (1) A tax of 1 cent for each 10 cents or fraction 
 thereof of the amount paid for admission to any place 
 on or after such date, including admission by season 
 ticket or subscription, to be paid by the person paying 
 for such admission; 
 
 (2) In the case of persons (except bona fide employees, ^i^'l^ r?Si 
 municipal officers on official business, persons in the mill- rates. 
 
 tary or naval forces of the United States when in uni- 
 form, and children under twelve years of age) admitted 
 free or at reduced rates to any place at a time when and 
 under circumstances under which an admission charge 
 is made to other persons, a tax of 1 cent for each 10 
 cents or fraction thereof of the price so charged to such 
 other persons for the same or similar accommodations, 
 to be paid by the person so admitted ; 
 
 (3) Upon tickets or cards of admission to theaters, ^^^J'Ji^''^*^ ^°'^ ^' 
 operas, and other places of amusement, sold at news BtLnds, etc? ^ ^ ^ 
 stands, hotels, and places other than the ticket offices of 
 
 such theaters, operas, or other places of amusement, at 
 not to exceed 50 cents in excess of the sum of the estab- 
 lished price therefor at such ticket offices plus the amount 
 of any tax imposed under paragraph (1), a tax equiva- 
 lent to 5 per centum of the amount of such excess ; and 
 if sold for more than 50 cents in excess of the sum of 
 such established price plus the amount of any tax im- 
 posed under paragraph (1), a tax equivalent to 50 per 
 centum of the whole amount of such excess, such taxes 
 to be returned and paid, in the mannef provided in sec- 
 tion 903, by the person selling such tickets ; 
 
 • See Regulations No. 43. 
 
 ' Act of October 3, 1917, post, page 849. 
 
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 539 
 
540 ADMISSIONS AND DtTES. 
 
 )ar^orStabii^d (*) A **^ equivalent to 50 per centum of the amount 
 
 pi'ce. for which the proprietors, managers, or employees of any 
 
 opera house, theater, or other place of amusement sell 
 or dispose of tickets or cards of admission in excess of 
 , the regular or established price or charge therefor, such 
 tax to be returned and paid, in the manner provided In 
 section 903, by the person selling such tickete; 
 
 cr'iMM^orboxM (5) In the case of persons having the permanent use of 
 
 or seats. boxes Or scats in an opera house or any place of amuse- 
 
 ment or a lease for the use of such box or seat in such 
 opera house or place of amusement (in lieu of the tax 
 imposed by paragraph (1)), a tax equivalent to 10 per 
 centum of the amount for which a similar box or seat 
 is sold for each performance or exhibition at which the 
 box or seat is used or resented by or for the lessee or 
 holder, such tax to be paid by the lessee or holder ; ancl, 
 
 caba"et8,^etc?''°' (6) A tax of 1^ ccnts for cach 10' cents or fraction 
 thereof of the amount paid for admission to any public 
 performance for profit at any roof garden, cabaret, or 
 other similar entertainment, to which the charge for ad- 
 mission is wholly or in part included in the price paid 
 for refreshment, service, or merchandise; the amount 
 paid for such admission to be deemd to be 20 per centum 
 of the amount paid for refreshment, service, and mer- 
 chandise; such tax to be paid by the person paying 
 for such refreshment, service, or merchandise. 
 Exemptions. (b) No tax shall be levied under this title in respect to 
 any admissions all the proceeds of which inure exclu- 
 sively to the benefit of religious, educational, or chari- 
 table institutions, societies, or organizations, societies for 
 the prevention of cruelty to children or animals, or exclu- 
 sively to the benefit of organizations conducted for the 
 sole purpose of maintaining symphony orchestras and re- 
 ceiving substantial support from voluntary contributions, 
 none of the profits of which are distributed to members 
 of such organizations, or exclusively to the benefit of per- 
 sons in the military or naval forces of the United States, 
 or admissions to agricultural fairs none of the profits of 
 which are distributed to stockholders or members of the 
 association conducting the same. 
 
 defintd^'"'*""''" (^) I'h® tQvm "admission" as used in this title in- 
 cludes seats and tables, reserved or otherwise, and other 
 similar accommodations, and the charges made therefor. 
 
 onMcket.^ '"""* (d) The price (exclusive of the tax to be paid by the 
 person paying for admission) at which every admission 
 ticket or card is sold shall be conspicuously and indelibly 
 printed, stamped, or written on the face or back thereof, 
 together with the name of the vendor if sold other than 
 at the ticket office of the theater, opera, or other place of 
 amusement. Whoever sells an admission ticket or card 
 on which the name of the vendor and price is not so 
 printed, stamped, or written, or at a price in excess of the 
 price so 2jpte§c/?^WlR^(9ff®PritteTi thereon, is guilty 
 
ADMISSIONS AND DUES. 54:1 
 
 of a misdemeanor, and upon conviction thereof shall be 
 fined not more than $100. 
 
 Example (1) of article 10, Part I of Regulations No. 43, 
 relating to skating rinks, amended. (T, D. 2949.) 
 
 Article 11, Regulations No. 43, amended. (T. D, 2964.) 
 
 Method of determining llnbillty of ticket brokers. (T. D. 
 2974. ) 
 
 Basis for computing tax where admission is by season 
 ticket or subscription. (T. D. 2975.) 
 
 Sec. 801. That from and after April 1, 1919, there shall ^^Tax "ji^me™- 
 be levied, assessed, collected, and paid, in lieu of the taxes feel ''' 
 imposed by section 701 of the Revenue Act of 1917, a tax 
 equivalent to 10 per centum of any amount paid on or 
 after such date, for any period after such date, (a) as 
 dues or membership fees (where the dues or fees of an 
 active resident annual member are in excess of $10 per 
 year) to any social, athletic, or sporting club or organi- 
 zation; or (b) as initiation fees to such a club or organi- 
 zation, if such fees amount to more than $10, or if the 
 dues or membership fees (not including initiation fees) 
 of an active resident annual member are in excess of $10 
 per year ; such taxes to be paid by the person paying 
 such dues or fees: Provided, That there shall be ex- Exemptions. 
 empted from the provisions of this section all amounts 
 paid as dues or fees to a fraternal society, order, or asso- 
 ciation, operating under the lodge system. In the case ^^J^'-^^ member- 
 of life memberships a life member shall pay annually, 
 at the time for the payment of dues by active resident an- 
 nual members, a tax equivalent to the tax upon the 
 amount paid by such a member, but shall pay no tax upon 
 the amount paid for life membership. 
 
 Sec. 802. That every person (a) receiving any pay- tai''''on*'°admis- 
 ments for such admission, dues, or fees shall collect the eions. 
 amount of the tax imposed by section 800 or 801 from the 
 person making such payments, or (b) admitting any per- 
 son free to any place for admission to v^hich a charge is 
 made, shall collect the amount of the tax imposed by 
 section 800 from the person so admitted. Every club or ^^^°^l^^^°'' ° ' 
 organization having life members, shall collect from ^ °° "^' 
 such members the amount of the tax imposed by •section 
 801. In all the above cases returns and payments of thep^^^tjj^"^^" «'"^ 
 amount so collected shall be made at the same time and 
 in the same manner as provided in section 502. 
 
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Digitized by Microsoft® 
 
Chapter Twenty-Two. 
 EXCISE TAXES.^' ^ 
 
 [Title IX, act of February 24, 1919 (40 Stat., 1057).] 
 
 Sec. 
 
 900. Articles subject to tax; rates of 
 
 tax. 
 
 901. Computation in case of sale, lease, 
 
 or license at less than fair mar- 
 ket value. 
 
 902. Sculpture, paintings, statuary, 
 
 etc. 
 
 903. Monthly returns and payment of 
 
 tax. 
 
 Sec. 
 
 904. Luxury tax. 
 
 905. Jewelry ; returns and payment of 
 tax. 
 
 906. Leasing or licensing for exhibition 
 motion-picture films. 
 
 907. Perfumes, extracts, toilet waters, 
 etc. ; pills, tablets, powders, etc. ; 
 method of collecting tax. 
 
 TITLE IX.— EXCISE TAXES. 
 
 Sec. 900. [Aci of February U, 1919 {Jft Stat., 1067).] ^^^^fol^- mi 
 That there shall be levied, assessed, collected, and paid of tax. '^ ' "' ^ 
 upon the following articles sold or leased by the manu- 
 facturer, producer, or importer, a tax equivalent to the 
 following percentages of the price for which so sold or 
 leased — 
 
 (1) Automobile trucks and automobile wagons, (in- 
 cluding tires, inner tubes, parts, and accessories there- 
 for, sold on or in connection therewith or with the sale 
 thereof), 3 per centum; 
 
 (2) Other automobiles and motorcycles, (including 
 tires, inner tubes, parts, and accessories therefor, sold 
 on or in connection therewith or with the sale thereof), 
 except tractors, 5 per centum; 
 
 (3) Tires, inner tubes, parts, or accessories, for any 
 of the articles enumerated in subdivision (1) or (2), 
 sold to any person other than a manufacturer or pro- 
 ducer of any of the articles enumerated in subdivision 
 (1) or (2), 5 per centum; 
 
 (4) Pianos, organs (other than pipe organs), piano 
 players, graphophones, phonographs, talking machines, 
 music boxes, and records used in connection with any 
 musical instrument, piano player, graphophone, phono- 
 graph, or talking machine, 5 per centum ; 
 
 (5) Tennis rackets, nets, racket covers and presses, 
 skates, snow-shoes, skis, toboggans, canoe paddles and 
 cushions, polo mallets, baseba^ll bats, gloves, masks, pro- 
 tectors, shoes and uniforms, football helmets, harness and 
 goals, basket-ball goals and uniforms, golf bags and clubs, 
 lacrosse sticks, balls of all kinds, including baseballs, foot- 
 balls, tennis, golf, lacrosse, billiard and pool balls, fish- 
 
 1 See Regulations Nos. 47, 48, SI, 54, 56. 
 Act October 3, 1917 (see post, p. 849). 
 
 Digitized by Microsoft® ^^ 
 
644 EXCISE TAXES. 
 
 ing rods and reels, billiard and pool tables, chess and 
 checker boards and pieces, dice, games and parts of games 
 (except playing cards and children's toys and games), 
 and all similar articles commonly or commercially known 
 as sporting goods, IQ per centum; 
 
 (6) Chewing gum or substitutes therefor, 3 per cen- 
 tum; 
 
 (7) Cameras, weighing not more than 100 pounds, 10 
 per centum; 
 
 (8) Photographic films and plates, other than mov- 
 ing-picture films, 5 per centum; 
 
 (9) Candy, 5 per centum; 
 
 (10) Firearms, shells, and cartridges, except those sold 
 for the use of the United States, any State, Territory, 
 or possession of the Unjted. States, any political subdivi- 
 sion thereof, the District of Columbia, or any foreign 
 country while engaged against the German Government 
 in the present war, 10 per centum ; 
 
 (11) Hunting and bowie knives, 10 per centum; 
 
 (12) Dirk knives, daggers, sword canes, stillettos, and 
 brass or metallic knuckles, 100 per centum ; 
 
 (13) Portable electric fans, 5 per centum; 
 
 (14) Thermos and (thermostatic bottles, carafes, jugs, 
 or other thermostatic containers, 5 per centum ; 
 
 (15) Cigar or cigarette holders and pipes, composed 
 wholly or in part of meerschaum or amber, humidors, 
 and smoking stands, 10 per centum; 
 
 (16) Automatic slot-device vending machines, 5 per 
 centum, and automatic, slot-device weighing machines, 
 10 per centum; if the manufacturer, producer, or im- 
 porter of any such machine operates it for profit, he shall 
 pay a tax in respect to each such machine put iJito opera- 
 tion equivalent to 5 per centum of its fair market value 
 in the case of a vending machine, and 10 per centum 
 of its fair market value in the case of a weighing ma- 
 chine ; 
 
 (17) Liveries and livery boots and hats, 10 per cen- 
 tum; 
 
 (18) Hunting and shooting garments and riding hab- 
 its, 10 per centum; 
 
 (19) Articles made of fur on the hide or pelt, or of 
 which any such fur is the component material of chief 
 value, 10 per centum; 
 
 (20) Yachts and motor boats not designed for trade, 
 fishing, or national defense; and pleasure boats and 
 pleasure canoes if sold for more than $15, 10 per centum; 
 and 
 
 (21) Toilet soaps and toilet soap powders, 3 per cen- 
 tum. 
 
 If any manufacturer, producer, or importer of any 
 
 of the articles enumerated in this section customarily 
 
 sells such articles both at wholesale and at retail, the tax 
 
 in the case of any article sold by him at retail shall be 
 Digitized by Microsoft® 
 
EXCISE TAXES. 545 
 
 computed on the price for ■which like articles are sold 
 by him at wholesale. 
 
 The taxes imposed by this section shall, in the case of 
 any article in respect to which a corresponding tax is 
 imposed by section 600 of the Revenue Act of 1917, be 
 in lieu of such tax. 
 
 Manufacturers, producers, and importers are subject to 
 excise tax upon all sales of taxable articles made to States 
 or political subdivisions thereof, except where specifically 
 exempt from tax upon such sales, as under subdivision (10) 
 of this section. (T. D. 2897.) 
 
 Article 10 of Regulations 47, amended. (T. D. 2897.) 
 
 Article 8 of Regulations 47, amended. (T. D. 2893.) 
 
 Articles 14 and 16 of Regulations 47, supplemented. 
 (T. D. 2893.) 
 
 Article 11, Regulations No. 47, as to scope of tax on auto- 
 mobiles, amended. (T. D. 2930.) 
 
 Article 14, Regulations No. 47, and T. Ds. 2852, 2860, and 
 2893, modified in so far as they relate to sales of tires, etc., 
 to manufacturers of automobiles, etc. (T. D. 2915.) 
 
 Articles 26 and 34, Regulations No. 47, amended. (T. D. 
 2852 ) 
 
 Article 15 of Regulations 47, modified by T. D. 2852 ; fur- 
 ther modified. (T. D. 2893.) 
 
 Article 17-19, 31, 33 of Regulations 47, supplemented. 
 (T. D. 2893.) 
 
 Article 29 of Regulations 47, amended. (T. D. 2893.) 
 
 Article 7 of Regulations 47, supplemented. (T. D. 2948.) 
 
 Sec. 901. That if any person manufactures, produces computation i.i 
 
 , • 1 ii- i' r^nn <=*''^ "' sale, 
 
 or imports any article enumerated m section 900, or lease, or license 
 leases or licenses for exhibition any positive motion- maS ralSe.'^'"^ 
 picture film containing a picture ready for projection, 
 and, whether through any agreement, an'angement, or 
 understanding, or otherwise, sells, leases, or licenses 
 such article at less than the fair market price obtainable 
 therefor, either (a) in such manner as directly or in- 
 directly to benefit such person or any person directly or 
 indirectly interested in the business of such person, or 
 (b) with intent to cause such benefit, the amount for 
 which such article is sold, leased or licensed shall be 
 taken to be the amount which would have been received 
 from the sale, lease or license of such article if sold, 
 leased or licensed at the fair market price. 
 
 Sec. 902. That there shall be levied, assessed, collected,, sculpture, 
 
 I . -, ., 'J' j_j j_ paintings, statu- 
 
 and paid upon sculpture, paintings, statuary, art por- ary, etc. 
 celains, and bronzes, sold by any person other than the 
 artist, a tax equivalent to 10 per centum of the price for 
 which so sold. This section shall not apply to the sale 
 of any such article to aii educational institution or pub- 
 lic art museum. 
 
 Manufacturers, producers, importers and vendors are 
 liable to tax upon all sales of taxable articles made to 
 State or political subdivisions thereof. (T. D. 2897.) 
 Article 6 of Regulations 48, amended. (T. D. 2897.) 
 Article 14, Regulations No. 48, relating to " art por- 
 celains," amended. (T. D. 2945.) 
 
 140184°— 20 35 
 
 Digitized by Microsoft® 
 
EXCISE lAXES. 
 
 Monthly ] 
 turns and t 
 ment of tax. 
 
 Ijnairy tax. 
 
 Sec. 903- That every person liable for any tax im- 
 posed by section 900, 9(^, or 906, shall make monthly 
 returns under oath in duplicate and pay the taxes im- 
 posed by such sections to the collector for tlie district 
 in which is located the principal place of business. 
 Such returns shall contain such information and be 
 made at such times and in such manner as the Com- 
 missioner, with the approval of the Secretary, may by 
 regulations prescribe. 
 
 The tax ^all, without assessment by the Commis- 
 sioner or notice from the colled;dr, be due and payable 
 to the collector at the time so fixed for filing the return. 
 If tlie tax is not paid when due, there shall be added as 
 part of the tax a penalty of 6 per centum, together with 
 interest at the rate of 1 per centum for each full month, 
 from the time when the tax became due. 
 
 Sec. 904. (a) That on and after May 1, 1919, there 
 shall be levied, assessed, collected, and paid a tax equiva- 
 lent to 10 per centum of so much of the amount paid 
 for any of the following articles as is in excess of the 
 price hereinafter specified as to each such article, when 
 such article is sold by or for a dealer or his estate on or 
 after such date for consumption or use — 
 
 (1) Carpets and rugs, including fiber, except imported 
 and American rugs made principally of wool, on the 
 amount in excess of $5 per square yard; 
 
 (2) Picture frames, on the amount in excess of $10 
 each ; 
 
 ^(3) Trunks, on the amount in excess of $50 each; 
 
 (4) "Valises, traveling bags, suit cases, hat boxes used 
 by travelers, and fitted toilet cases, on the amount in ex- 
 cess of $25 each; 
 
 (5) Purses, pocketbooks, shopping and hand bags, on 
 the amount in excess of $7.50 each; 
 
 (6) Portable lighting fixtures, including lamps of all 
 kinds and lamp shades, on the amount in excess of $25 
 each ; 
 
 Purchaser of lamp and shade entitled to exemption of $25 
 from amount paid (1) for lamp and (2) for shades article 
 18, Regulations No. 54, amended. (T. D. 2950.) 
 
 (7) Umbrellas, parasols, and sun shades, on the 
 amount in excess of $4 each; 
 
 (8) Fans, on the amount in excess of $1 each; 
 
 (9) House or smoking coats or jackets, and bath or 
 lounging robes, on the amount in excess of $7.50 each ; 
 
 (10) Men's waistcoats, sold separately from suits, on 
 the amount in excess of $5 each; 
 
 (11) Women's and misses' hats, bonnets, and hoods, 
 on the amount in excess of $15 each; 
 
 (12) Men's and boys' hats, on the amount in excess 
 of $5 each ; 
 
 (13) Men's and boys' caps, on the amount in excess of 
 $2 each: 
 
 Digitized by Microsoft® 
 
EXCISE TAXES. 547 
 
 (14) Men^ women's, misses', and boys' boots, sho^, 
 pumps, and slippers, not includiaig shoes or appliances 
 Bfiade to ordw for aaiy person having a crippled or de- 
 formed foot or ankle, on the amount in excess of $10 
 per pair; 
 
 (15) Men's and boys' neckties and neckwear, on the 
 amount in excess of $2 each ; 
 
 (16) Men's and boys' silk stockings or hose, on the 
 amount in excess of $1 per pair; 
 
 (17) Women's and misses' silk stockings or hose, on 
 tlie amount in excess of $2 per pair; 
 
 (18^ Men's shirts, on the amount in excess of $3 each; 
 
 (19) Men's, women's, misses', and boys' pajamas, ni^t 
 gowns, and underwear, on the antount in excess of $5 
 each; and 
 
 (20) Kimonos, petticoats, and waists, on the amount 
 in excess of $15 each. 
 
 (b) The tax imposed by this section shall not apply 
 (1) to any article enumerated in paragraphs (2) to (8), 
 both inclusive, of subdivision (a), if such article is made 
 of, or ornamented, mounted, or fitted, with, precious met- 
 als or imitations thereof or ivory, or (2) to any article 
 made of fur on the hide or pelt, or of which any such 
 fur is the component material of chief value, or to (3) 
 any article enumerated in subdivision (17) or (18) of 
 section 900. 
 
 (c) The taxes imposed by this section shall be paid 
 by the purchaser to the vendor at the time of the sale 
 and shall be collected, returned, and paid to the United 
 States by such vendor in the same manner as provided 
 in section 502. 
 
 Where excise tax is imposed directly upon vendee, sales 
 to States or political subdivisions thereof are exempt from 
 tax. (T. D. 2897.) 
 
 Articles 24, 25, 2S, 30 of Regulations 54, supplemented. 
 (T. D. 2893.) 
 
 Sales slips to be kept 90 days. (T. D. 2965.) 
 
 Sec. 90.5. That on and after April 1, 1919, there shall turi'^S 
 be levied, assessed, collected, and paid (in lieu of the ment oj tax. 
 tax imposed by subdivision (e) of section 600 of tlie 
 Eevenue Act of 1917) upon all articles commonly or 
 commercially known as jewelry, whether real or imita- 
 tion; pearls, precious and semiprecious stones, and imi- 
 tations thereof; articles made of, or ornamented, mount- 
 ed or fitted with, precious metals or imitations thereof 
 or ivory (not including surgical instruments) ; watches; 
 clocks; opera glasses; lorgnettes; marine glasses; field 
 
 f lasses ; and binoculars ; upon any of the above when sold 
 y or for a dealer or his estate for consumption or use, 
 a tax equivalent to 5 per centum of the price for which 
 so sold. 
 
 Every person selling any of the articles enumerated 
 in this section shall make returns under oath in dupli- 
 cate (monthly or quarterly a,s th& Comuiissioner, with 
 
 re- 
 turns and pay- 
 
648 EXCISE TAXES. 
 
 the approval of the Secretary, may prescribe) and pay 
 the taxes imposed in respect to such articles by this sec- 
 tion to the collector for the district in which is located 
 the principal place of business. Such returns shall con- 
 tain such information and be made at such times and in 
 such manner as the Commissioner, with the approval of 
 the Secretary, may by regulations prescribe. 
 
 The tax shall, without assessment by the Commissioner 
 or notice from the collector, be due and payable to the 
 collector at the time so fixed for filing the return. If 
 the tax is not paid when due, there shall be added as 
 part of the tax a penalty of 5 per centum, together with 
 interest at the rate of 1 per centum for each full month, 
 from the time when the tax became due. 
 
 Manufacturers, producers, importers and vendors are 
 liable to tax upon all sales of taxable articles made to 
 States or political subdivisions thereof. (T. D. 2897.) 
 Article 3 of Regulations 48, amended. (T. D. 2893.) 
 Article 6 of Regulations 48, amended. (T. D. 2897.) 
 Articles 5, 24, 28 of Regulations 48, supplemented. 
 (T. D. 2893.) 
 
 Article 19, Regulations No. 48, relating to articles tax 
 paid under other acts, amended. (T. D. 2936.) 
 
 ce]^1ng"for°exhi: Seo. 906. That ou and after the 1st day of May, 1919, 
 bition motion- any pcrsou engaged in the business of leasing or licens- 
 pi ure ms. ^^^ ^^^ exhibition positive motion-picture films contain- 
 ing pictvires ready for projection shall pay monthly an 
 excise tax in respect to carrying on such business equal 
 to 5 per centum of the total rentals earned from each such 
 lease or license during the preceding month. If a person 
 owning such a film exhibits it for profit he shall pay a 
 tax equivalent to 5 per centum of the fair rental or 
 license value of such film at the time and place where 
 and for the period during which exhibited. If any such 
 person has, prior to December 6, 1918, made a bona fide 
 contract with any person for the lease or licensing, after 
 the tax imposed by this section takes effect, of such a 
 film for exhibition for profit, and if such contract does 
 not permit the adding of the whole of the tax imposed 
 by this section to the amount to be paid under such con- 
 tract then the lessee or licensee shall, in lieu of the lessor 
 or licensor, pay so much, of such tax as is not so per- 
 mitted to be added to the contract price. The tax im- 
 posed by this section shall be in lieu of the tax imposed 
 by subdivisions (c) and (d) of section 600 of the Eeve- 
 nue Act of 1917. 
 
 Lessors of positive motion-picture films containing 
 pictures ready for projection are subject to tax upon 
 amounts received from the leasing of such films to States 
 or political subdivisions thereof. (T. D. 2897.) 
 
 ttrs,\t°y vai, shall be levied, assessed, collected and paid (in lieu of the 
 
 etc.'f'mSiiod"o'f taxes imposcd by subdivisions (g) and (h) of section 
 
 collecting tax. 600 of the Kcvenue Act of 1917) a tax of 1 cent for each 
 
 25 cents' oE)i§il^it>bytMcwicif^he amount paid for any 
 
EXCISE TAXES. 549 
 
 of the following articles when sold by or for a dealer or 
 his estate on or after such date for consumption or use : 
 
 (1) Perfumes, essences, extracts, toilet waters, cos- 
 metics, petroleum jellies, hair oils, pomades, hair dress- 
 ings, hair restoratives, hair dyes, tooth and mouth washes, 
 dentifrices, tooth pastes, aromatic cachous, toilet 
 powders (other than soap powders), or any similar sub- 
 stance, article, or preparation by whatsoever name known 
 or distinguished, any of the above which are used or ap- 
 plied or intended to be used or applied for toilet pur- 
 poses ; 
 
 (2) Pills, tablets, powders, tinctures, troches or loz- 
 enges, sirups, medicinal cordials or bitters, anodynes, 
 tonics, plasters, liniments, salves, ointments, pastes, drops, 
 waters (except those taxed under section 628 of this Act), 
 essences, spirits, oils, and other medicinal preparations, 
 compounds, or compositions (not including serums and 
 antitoxins), upon the amount paid for any of the above 
 as to which the manufacturer or producer claims to have 
 any private formula, secret, or occult art for making or 
 preparing the same, or has or claims to have any ex- 
 clusive right or title to the making or preparing the same, 
 or which are prepared, uttered, vended, or exposed for 
 sale under any letters patent, or trade-mark, or which (if 
 prepared by any formula, published or unpublished) are 
 held out or recommended to the public by the makers, 
 vendors, or proprietors thereof as proprietary medicines 
 or medicinal proprietary articles or preparations, or as 
 remedies or specifics for any disease, diseases, or affec- 
 tion whatever affecting the human or animal body : Pro- 
 vided, That the provisions of this section shall not apply 
 to the sale of vaccines and bacterines which are not ad- 
 vertised to the general lay public, nor to the sale by a 
 physician in personal attendance upon a patient of 
 medicinal preparations not so advertised. 
 
 (b) The taxes imposed by this section shall be collected 
 by whichever of the following methods the Commissioner 
 may deem expedient: (1) by stamp affixed to such ar- 
 ticle by the vendor, the cost of which shall be reimbursed 
 to the vendor by the purchaser; or (2) by payment to the 
 vendor by the purchaser at the-time of the sale, the taxes 
 so collected being returned and paid to the United States 
 by such vendor in. the same manner as provided in sec- 
 tion 502. 
 
 Proprietary stamps prepared and distributed under 
 authority section 22, act October 22. 1914, can not legally 
 be used for payment of taxes imposed by this section. (T. 
 D. 2893.) 
 
 Articles 5, 16, 17 (d), Regulations 51, supplemented. 
 (T. D. 2893.) Article 5 further modified. (T. D. 2958.) 
 
 Article 8 of Regulations 51, amended. (T. D. 2893.) 
 
 Where excise tax is imposed directly upon vendee, sales 
 to States or political subdivisions thereof are exempt from 
 tax. (T. D. 2897.) 
 
 Article 20, Regulations No. 51, relating to collection of 
 
 tax, amended. {TOiQiSi^)by Microsoft® 
 
Digitized by Microsoft® 
 
Chapter Twenty-three. 
 
 STAMP TAXES ON SPECIFIC OBJECTS.* 
 
 Sec. 
 
 3422. Affixing stamps to instruments 
 
 to render them valid. 
 3426 (amended). Superseded bv Act of 
 
 May 12, 1900 (amended). 
 Redemption of stamps. 
 
 Sec. 
 
 3429 (amended). Forging, counterfeit- 
 ing, etc., or fraudulently using 
 or selling stamps, etc. ; penal- 
 ties. 
 
 3437. Assessment of stamp taxes where 
 articles are removed without 
 being stamped. 
 
 [Title XI, act of February 24, 1919 (40 Stat. 
 Sec. 
 1300. Date tax effective. 
 
 1101. Exemptions. 
 
 1102. Penalties. 
 
 1103. Same. 
 
 1104. Method of canceling stamps. 
 
 1105. Preparation and distribution of 
 
 stamps ; contracts ; applica- 
 bility of general laws. 
 
 1057).] 
 Sec. 
 
 1106. Stamps furnished to postmasters. 
 
 1107. Sale of stamps. Schedule A. 
 Rate of taxes on various in- 
 struments. 
 
 For former acts of Congress requiring stamps to be 
 affixed to certain written instruments, see act of July 1, 
 1862, Schedule B, following section 110 (12 Stat., 479) ; act 
 of March 3, 1863, section 6 (12 Stat., 720) ; act of June 
 30, 1864, section 1-51 (13 Stat., 291) ; act of March 3, 1865, 
 section 1 (13 Stat., 469) ; act of July 13, 1866 (14 Stat, 
 141) ; act of June 23, 1874, section 1 (18 Stat, part 3, 250). 
 
 The act of June 6, 1872, section 36 (17 Stat., 256), pro- 
 vided for the repeal, on and after October 31, 1872, of 
 stamp taxes on instruments, except the tax of 2 cents on 
 bank checks, drafts, and orders, which was repealed by 
 the act of March 3, 1883 (22 Stat., 488). 
 
 Tjtxes were imposed by the act of June 13, 1898, on in- 
 struments and documents, under Schedule A thereof, and 
 were repealed in part by the act of March 2, 1901, and 
 wholly repealed hv the war-revenue repeal act of April 12, 
 1902 (32 Stat., 96), taking effect .July 1, 1902. 
 
 Stamp taxes on instruments were also imposed by the 
 act of October 22. 1914, effective December 1, 1914 (Emer- 
 gency Revenue Act), which by its own terms expired De- 
 cember 31, 1915, but was extended by joint resolution of 
 December 17, 1915, until and including December 31, 1916, 
 and then repealed by the act of September 8, 191G (39 
 Stat., 7.56), effective September 9, 1916. Stamp taxes were 
 again imposed by the War Revenue Act of October 3, 1917, 
 going into efCect December 1, 1917. 
 
 Sec. 3422. * * * (This section was amended by 
 the acts of February 18, 1875 (18 Stat., 319), and Feb- 
 ruary 27, 1877 (19 Stat., 248), and was then superseded 
 by section 13, act of June 13, 1898 (30 Stat., 454), which 
 was repealed bv section 7, act of April 12, 1902 (32 Stat., 
 96).) 
 
 1 See E('gulations No. 40. 
 
 Digitized by Microsoft® 
 
 551 
 
552 STAMP TAXES ON SPECIFIC OBJECTS. 
 
 Sec. 3426. [Atnended by sec. 17, act of March 1, 1879 
 {20 Stat., 327). '\ Eedemption of stamps, etc. 
 This section has been superseded by the following Act : 
 
 REDEJIPTION OF STAMPS. 
 
 An Act Authorizing the Commissioner of Internal Revenue to re- 
 deem or make allowance for Internal-revenue stamps. (Act of 
 May 12, 1900 (31 Stat., 177), as amended by the act of June 30, 
 1902 (32 Stat., 506).) 
 
 iefundilj^''°th'e That the Commissioner of Internal Revenue, subject 
 value of stamps to regulations prescribed by the Secretary of the Treas- 
 ment'of *a'ny''in- "rj? ^ay, upon receipt of satisfactory evidence of the 
 tax™^""^'^^""^ facts, make allowance for or redeem such of the stamps, 
 issued under authority of law, to denote the payment of 
 any internal-revenue tax, as may have been spoiled, 
 destroyed, or I'endered useless or unfit for the purpose 
 intended, or for which the owner may have no use, or 
 which through mistake may have been improperly or 
 unnecessarily used, or where the rates or duties repre- 
 sented thereby have been excessive in amount, paid in 
 error, or in any manner wrongfully collected. Such 
 allowance or redemption may be made, either by giving 
 other stamps in lieu of the stamps so allowed for or 
 redeemed, or by refunding the amount or value to the 
 owner thereof, deducting thei'efrom, in case of repay- 
 ment, the percentage, if any, allowed to the purchaser 
 thereof; but no allowance or redemption shall be made 
 in any case until the stamps so spoiled or rendered useless 
 shall have been returned to the Commissioner of Internal 
 Eevenue, or until satisfactory proof has been made 
 showing the reason why the same can not be returned ; or, 
 if so required by the said Commissioner, when the person 
 presenting the same can not satisfactorily trace the his- 
 tory of said stamps from their issuance to the presenta- 
 tion of his claim as aforesaid. 
 
 Provided, That documentary and proprietary stamps 
 issued under the provisions of " An act to provide ways 
 and means for war expenditures, and for other purposes," 
 approved June thirteenth, eighteen hundred and ninety- 
 eight, may be redeemed only when presented in quanti- 
 ties of two dollars or more, face value ; 
 reSptfoii"" *" Provided further. That no claim for the redemption of 
 or allowance for stamps shall be allowed unless pre- 
 sented within two years after the purchase of said 
 stamps from the Government, " excepting documentary 
 and proprietary stamps issued under the Act of June 
 thirteenth, eighteen hundred and ninety-eight, which 
 stamps may be redeemed as hereinbefore authorized, 
 upon presentation prior to the first day of July, nineteen 
 hundred and four." 
 
 mSMr^^^firai ^^^- ^- '^^^* *^^ finding of facts in and the decision of 
 txc«pt in case of the Commissiouer of Internal Revenue upon the merits 
 ma^karmSlLke':' of any c\-BBiiQitmeMSi^^im^m®v authorized by this Act 
 
STAMP TAXES -ON SPECIFIC OBJECTS. 553' 
 
 shall, in the absence of fraud or mistake in mathematical 
 calculation, be final and not subject to revision by any 
 accounting officer. 
 
 Sec. 3. That all laws and parts of laws in conflict with 
 any of the provisions of this Act are hereby repealed. 
 
 The American West Indies Trading Co. v. United States. 
 (45 Ct. ds., 488.) 
 
 f'ourt of Olairas lias jurisdiction to enforce payment of 
 a claim allowed by Commissioner and disallowed by Comp- 
 troller. (Kaufman v. United States, 11 Ct. Cls., 659; 96 
 U. S., 567; 24 Int. Rev. Rec, 135.) See also Woolner's 
 case (13 Ct. Cls., 355; 24 Int. Rev. Rec, 181). 
 
 Stamps not representing revpnue taxes will not be re- 
 deemed bv the Government. (Letter to Collector Shearer, 
 Oct. 28, 1897; 43 Int. Rev. Rec, 401.) 
 
 There is no material difterence between the powers of 
 the Commissioner under section 3426, and under section 
 3220. Under section 8426 he Is to " allow " the claim, which 
 is done either by giving other stamps in lieu of those that 
 have been spoiled, etc., or by repaying the amount or value. 
 Under section 3220 be is to " refund " and " pay back." 
 His payments in both cases must be made through the ac- 
 counting officers of the Treasury Department, as he Is not 
 himself a disbursing officer. (United States r. Savings 
 Bank (1881), 104 U. S., 733; 28 Int. Rev. Rec, 87.) 
 
 (United States v. American Tobacco Co., 166 U. S., 468.) 
 
 Internal-revenue stamps redeemable only when owned 
 and presented for redemption by persons, or their legal 
 representatives, authorized to purchase and use them for 
 the payment of taxes. (T. D. 19224.) 
 
 Sec. 3429. [Amended by sec. 17, act of March /, 1879 
 {20 Stat., 327) ; reenacted ly sec. Jt2, act of August 27, 
 189i {28 Stat., 552).] 
 
 ^: ^ # sj: =;; 
 
 And the fact that any adhesive stamp so bought, sold, evYdTnc^e'^'o! 
 offered for sale, used, or had in possession as aforesaid, washing, restor- 
 , has been washed or restored by removing or altering the '"^' " °' 
 canceling or defacing marks thereon, shall be prima facie 
 proof that such stamp has been once used and removed 
 by the possessor thereof from some paper, instrument, or 
 writing, charged with taxes imposed by law, in violation 
 of the provisions of this section. 
 
 Indictment for having in possession and knowingly offer- 
 ing for sale washed and restored adhesive documentary 
 stamps. (Kaufman v. United States, 51 C. C. A., .549, 113 
 Fed., 919.) 
 
 Counterfeiting imitation wine or compound liquor stamps 
 (sec. 3328, p. 325). 
 
 Counterfeiting stamps for fermented liquors (sec. 3346, 
 p. 314). 
 
 Using imitation stamps on packages of distilled spirits 
 (sec. 17, act of February 8, 1875 (18 Stat., 307) ; p. 270). 
 
 Counterfeiting obligations or securities of the United 
 States, which include stamps (sees. 147, 148, Criminal 
 Code, act March 4, 1909, 35 Stat., 1115, p. 680, Appendix). 
 
 Dealing in counterfeit securities (sec. 154, Criminal Code, 
 act March 4, 1909, 35 Stat., 1117). 
 
 Sec. 3437. Whenever any article upon which a tax is ^ t*^^^p="f ^',, ^"1 
 required to be paid by means of a stamp is sold or re- when article ta 
 moved for sale by th(i[^f}.^c^yTj^c^^§WPi>> without the be™°g''itam*d?* 
 
554 
 
 STAMP TAXES OBT SPECIFIC OBJECTS. 
 
 Date tax effec- 
 tive. 
 
 ExemptloDS. 
 
 Penaltiei. 
 
 use of the proper stamp, in addition to the penalties im- 
 posed by law for such sale or removal, it shall be the 
 duty of the Commissioner of Internal Revenue, within a 
 period of not more than two years after such removal or 
 sale, upon such information as he can obtain, to estimate 
 the amount of the tax which has been omitted to be paid, 
 and to make an assessment therefor upon the manufac- 
 turer or producer of such article. He shall certify such 
 assessment to the collector, who shall immediatelj' de- 
 mand payment of such tax, and upon the neglect or re- 
 fusal of payment by such manufacturer or producer, 
 shall proceed to collect the same in the manner provided 
 for the collection of other assessed taxes. 
 
 As to assessments in general, see section 3182, page 112. 
 
 TITLE XI.— STAMP TAXES.^ 
 
 Sec. 1100. [Act of Felruary 2^, 1919 {Ifi Stat., 1057).] 
 That on and after April 1, 1919, there shall be levied, 
 collected, and paid, for and in respect of the several 
 bonds, debentures, or certificates of stock and of in- 
 debtedness, and other documents, instruments, matters, 
 and things mentioned and described in Schedule A of 
 this title, or for or in respect of the vellum, parchment, 
 or paper upon which such instruments, matters, or 
 things, or any of them, are written or printed, by any 
 person who makes, signs, issues, sells, removes, consigns, 
 or ships the same, or for whose use or benefit the same 
 are made, signed, issued, sold, removed, consigned, or 
 shipped, the several taxes specified in such schedule. The 
 taxes imposed by this section shall, in the case of any 
 article upon which a corresponding stamp is now im- 
 posed by law, be in lieu of such tax. 
 
 Sec. 1101. That there shall not be taxed under this title 
 any bond, note, or other instrument, issued by the United 
 States, or by any foreign Government, or by any State, 
 Territory, or the District of Columbia, or local subdivi- 
 sion thereof, or municipal or other corporation exercis- 
 ing the taxing power; or any bond of indemnity re- 
 quired to be filed by any person to secure payment of 
 any pension, allowance, allotment, relief, or insurance 
 by the United States; or stocks and bonds issued by co- 
 operative building and loan associations which are or- 
 ganized and operated exclusively for the benefit of their 
 members and make loans only to their shareholders, or 
 by mutual ditch or irrigating companies. 
 
 Indemnity bonds given under section 3646, R. S., to se- 
 cure United States against lost cliecks issued ou war risk 
 insurance not subject to tax. (T. D. 2900.) 
 
 Sec. 1102. That whoever— 
 
 (a) Makes, signs, issues, or accepts, or causes to bo 
 made, signed, issued, or accepted, any instrument, docu- 
 
 Di^i^i^S^fl^fSfo^bm 
 
STAMP TAXES ON SPECIFIC OBJECTS. 555 
 
 inent, or paper of any kind or description whatsoever 
 without the full amount of tax thereon being duly 
 paid; 
 
 (b) Consigns or ships, or causes to be consigned or 
 shipped, by parcel post any parcel, package, or ai-ticle 
 without the full amount of tax being duly paid ; 
 
 (c) Manufactures or imports and sells, or offers for 
 sale, or causes to be manufactured or imported and sold, 
 or offered for sale, any playing cards, package, or other 
 article without the full amount of tax being duly paid; 
 
 (d) Makes use of any adhesive stamp to denote any 
 tax imposed by this title without canceling or obliterat- 
 ing such stamp as prescribed in section 1104; 
 
 Is guilty of a misdemeanor and upon conviction there- 
 of shall pay a fine of not more than $100 for each offense. 
 
 SeO.1103. That whoever— Penalties. 
 
 (a) Fraudulently cuts, tears, or removes from any vel- 
 lum, parchment, paper, instrument, writing, package, 
 or article, upon which any tax is imposed by this title, 
 any adhesive stamp or the impression of any stamp, 
 die, plate, or other article provided, made, or used in 
 pursuance of this title; 
 
 (b) Fraudulently uses, joins, fixes, or places to, with, 
 or upon any vellum, parchment, paper, instrument, writ- 
 ing, package, or article, upon which any tax is imposed 
 by this title, (1) any adhesive stamp, or the impres- 
 sion of any stamp, die, plate, or other article, which has 
 been cut, torn, or removed from any otheir vellum, 
 pal-chment, paper, instrument, writing, package, or 
 article, upon which any tax is imposed by this title ; 
 or (2) any adhesive stamp or the impression of any 
 stamp, die, plate, or other article of insufficient value; 
 oi\ (3) any forged or counterfeit stamp^ or the impres- 
 sion of any forged or counterfeited stamp, die, plate, 
 or other article ; 
 
 (c) Willfully removes, or alters the cancellation, or 
 defacing marks of, or otherwise prepares, any adhesive 
 stamp, with intent to use, or cause the same to be used, 
 after it has been already used, or knowingly or willfully 
 buys, sells, offers for sale, or gives away, any such 
 washed or restored stamp to any person for use, or 
 knowingly uses the same; 
 
 (d) Knowingly and without lawful excuse (the 
 burden of proof of such excuse being on the accused) 
 has in possession any washed, restored, or altered stamp, 
 which has been removed from any vellum, parchment, 
 paper, instrument, writing, package, or article; 
 
 Is guilty of a misdemeanor, and upon conviction shall 
 be punished by a fine of not more than $1,000, or by im- 
 prisonment for not more than five years, or both, and 
 any such reused, cancelled, or counterfeit stamp and the 
 vellum, parchment, document, paper, package, or article 
 upon which it is placed or impressed shall be forfeited to 
 the United States. Digitized by Microsoft® 
 
556 STAMP TAXES ON SPECIFIC OBJECTS. 
 
 sJtatlt&mps^"' Sec. 1104. That whenever an adhesive stamp is used 
 for denoting any tax imposed by this title, except as 
 hereinafter provided, the person using or affixing the 
 same shall write or stamp or cause to be written or 
 stamped thereupon the initials of his of its name and the 
 date upon which the same is attached or used, so that the 
 same may not again be used: Provided, That the Com- 
 missioner may prescribe such other method for the can- 
 cellation of such stamps as he may deem expedient. 
 difStion"^? Sec. 1105. (a) That the Commissioner shall cause to be 
 6tamps. prepared and distributed for the payment of the taxes 
 
 prescribed in this title suitable stamps denoting the tax 
 on the document, articles, or thing to which the same may 
 be aflSxed, and shall prescribe such method for the affix- 
 ing of said stamps in substitution for or in addition 
 to the method provided in this title, as he may deem ex- 
 pedient. 
 anth™Tz'ld''"to ^^^ "^^^ Commissioner, with the approval of the Sec- 
 make "contract, retary, is . authorized to procure any of the stamps pro- 
 vided for in this title by contract whenever such stamps 
 can not be speedily prepared by the Bureau of Engrav- 
 ing and Printing; but this authority shall expire on 
 January 1, 1920, except as to imprinted stamps furnished 
 under contract, authorized by the Commissioner. 
 *?kab?e '*^' (^) -^^^ internal-re venuei laws relating to the assess- 
 ment and collection of taxes are hereby extended to and 
 made a part of this title, so far as applicable, for the pur- 
 pose of collecting stamp taxes omitted through mistake 
 or fraud from any instrument, document, paper, writing, 
 parcel, package, or article named herein, 
 fufmX'd tipos't- S^^- 1106. That the Commissioner shall furnish to the 
 masters. Postmastcr General without prepayment a suitable 
 
 quantity- of adhesive stamps to be distributed to and 
 kept on sale by the various postmasters in the United 
 States. The Postmaster General may require each such 
 postmaster to give additional or- increased bond as post- 
 master for the value of the stamps so furnished, and each 
 such postmaster shall deposit the receipts from the sale 
 of such stamps to the credit of and render accounts to 
 the Postmaster General at such times and in such form as 
 he may by regulations prescribe. The Postmaster Gen- 
 eral shall at least once monthly transfer all collections 
 from this source to the Treasury as internal-revenue col- 
 lections. 
 Sal., of rtamps. Sec_ hqT. That the collectors of the several districts 
 shall furnish without prepayment to any assistant treas- 
 urer or designated depositary of the United States lo- 
 cated in their respective collection districts a suitable 
 quantity of adhesive stamps for sale. In such cases the 
 collector may require a bond, with sufficient sureties, to 
 an amount equal to the value of the adhesive stamps 
 so furnished, conditioned for the faithful return, when- 
 ever so required, of all quantities or amounts undisposed 
 of, and Mg'tiW^tiyTMl&fPS&Mhly of all quantities or 
 
STAMP TAXES ON SPECIFIC OBJECTS. 557 
 
 amounts sold or not remaining on hand. The Secretary 
 may from time to time make such regiilations as he may 
 find necessary to insure the safekeeping or prevent the 
 illegal use of all such adhesive stamps. 
 
 SCHEDULE A. 
 
 1. Bonds of indebtedness : On all bonds, debentures, ^adoul "' tat™° 
 or certificates of indebtedness issued by any person, and '"™*^- 
 
 all instruments, however termed, issued by any corpora- debtedness. 
 tion with interest coupons or in registered form, known 
 generally as corporate securities, on each $100 of face 
 value or fraction thereof, 5 cents: Provided, That every 
 renewal of the foregoing shall be taxed as a new issue : 
 Provided further, That when a bond conditioned for 
 the repayment or payment of money is given in a penal 
 sum greater than the debt secured, the tax shall be based 
 upon the amount secured. 
 
 Article 14, Regulations No. 55, defining " certificates of 
 indebtedness," amended. (T. D. 2919.) 
 
 2. Bonds, indemnity and surety : On all bonds exe- ,„r^"y™bradL*"'' 
 cuted for indemnifying any person who shall have be- 
 come bound or engaged as surety, and on all bonds exe- 
 cuted for the due execution or performance of any con- 
 tract, obligation, or requirement, or the duties of any 
 
 offi.'-e or position, and to account for money received bv 
 virtue thereof, and on all policies of guaranty and fidel- 
 ity insurance, including policies guaranteeing titles to 
 real estate and mortgage guarantee j)olicies, and on all 
 other bonds of any description, made, issued, or executed, 
 not otherwise provided for in this schedule, except such 
 as may be required in legal proceedings, 50 cents: Pro- 
 vided, That where a premium is charged for the issu- 
 ance, execution, renewal or continuance of such bond 
 the tax shall be 1 cent on each dollar or fractional part 
 thereof of the premium charged : Provided further. That 
 policies of reinsurance shall be exempt from the tax im- 
 posed by this subdivision. 
 
 Collection of taxes upon premiums charged for issuance, 
 execution, etc.; of bonds or policies mentioned in this sub- 
 division. (T. D. 2825.) 
 
 Article 28, Regulations No. 55, amended. (T. D. 2913.) 
 
 3. Capital stock, issued : On each original issue, ^^^""^^^^^ ">?'- 
 whether on organization or reorganization, of certificates 
 
 of stock, or of profits, or of interest in property or ac- 
 cumulations, by any corporation, on each $100 of face 
 value or fraction thereof, 5 cents : Provided, That where 
 a certificate is issued without face value, the tax shall 
 be 5 cents per share, unless the actual value is in excess 
 of $100 per share, in which case the tax shall be 5 cents 
 on each $100 of actual value or fraction thereof. 
 
 The stamps representing the tax imposed by this sub- 
 division shall be attached to the stock books and not to 
 the certificates i^^^^^oigitized by Microsoft® 
 
558 STAMP TAXES OH SPECIFIC OBJECTS. 
 
 fe/of^a'puai ^ Ca|)ital stock, sales or traiisfers: On all sales, or 
 stock. agreements to sell, or memoranda of sales or deliveries 
 
 of, or transfers of legal title to shares or certificates of 
 stock or of profits or of interest in pix)perty or accumxi- 
 lations in any corporation, or to rights to subscribe for 
 or to receive such shares or certificates, whether made 
 upon or shown by the books of the corporation, or by 
 any assi^ment in blank, or by any delivery, or by any 
 paper or agreement or memorandum or other evidence of 
 transfer or sale, whether entitling the holder in any 
 manner to the benefit of such stoct, interest, or rigl^s, 
 or not, on each $100 of face value! or fraction thereof, 
 2 cents, and where such shares are without par or face 
 value, the tax shall be 2 cents on the transfer or sale or 
 agreement to sell on each share, unless the actual value 
 thereof is in excess of $100 per share, in which case the 
 tax shall be 2 cents on ©ach $100 of actual valu« or frac- 
 tion thereof: Provided, That it is not intended by this 
 ititle to impose a tax upon an agreement evidencing a de- 
 posit of certificates as collateral security for money 
 loaned thereon, which certificates are not actually sold, 
 nor upon the delivery or transfer for such purpose of 
 / certificates so deposited: Provided furtfuer, That the tax 
 shall not be imposed upon deliveries or transfers to a 
 broker for sale, nor upon deliveries or transfers by a 
 broker to a custMner for whom and upon whose order 
 he has purchased same, but such deliveries or transfers 
 shall be accompanied by a certificate setting forth the 
 facts : Provided further, That- in case of sale where the 
 evidence of transfer is shown only by the books of the 
 corporation the stamp shall be placed upon such books; 
 and where the change of ownership is by transfer of tiie 
 certificate the stamp shall be placed upon the certificate ; 
 and in cases of an agreement to sell or where the trans- 
 fer is by delivery of the certificate assigned in blank 
 there shall be made and delivered by the seller to the 
 buyer a bill or memorandum of such sale, to whidi the 
 stamp shall be affixed; and every bill or memorandum 
 of sale or agreement to sell before menti'oned shall show 
 the date thereof, the name of the seller, the amount of 
 the sale, and the matter or thing to which, it refers. Any 
 person liable to pay the tax as herein provided, or any- 
 one who acts in the matter as agent or broker for such 
 person, who makes any such sale, or who in pursuance 
 of any such sale delivers any certificate or evidence of 
 tto sale of any stock, interest or right, or bill or memo- 
 randum thereof, as herein required, without having the 
 proper stamps affixed thereto with intent to evade the 
 foregoing provisions, shall be deemed guilty of a mis- 
 demeanor, and upon conviction thereof shall pay a fine 
 of not exceeding $1,000, or be imprisoned not more than 
 six months, or both. 
 du^c*e^^ on ^It ^- Produce, sales of, on exchange: Upon each sale, 
 change. a.gieement[3f§jti^,b^Mi^^&SSff^t to sell (not including 
 
STAMP TAXES ON SPECIFIC OBJECTS. 559 
 
 so-called transferred or scratch sales), anj* products or 
 merchandise at, or under the rules or usages of, any ex- 
 change, or board of trade, or other similar place, for 
 future delivery, for each $100 in value of the merchan- 
 dise covered by said sale or agreement of sale or agree- 
 m.ent to sell, 2 cents, and for each additional $100 or 
 fractional part thereof in ,excess of $100, 2 cents: 
 Provided, That on every sale or agreement of sale or 
 agreement to sell as aforesaid there shall be made and 
 delivered by the seller to the buyer a bill, memorandum, 
 agreement, or other evidence of such sale, agreement of 
 sale, or agreement to sell, to which there shall be affixed 
 a lawful stamp or stamps in value equal to the amount 
 of the tax on such sale: Provided furtJier, That sellers 
 of commodities described herein, having paid the tax 
 provided by this subdivision, may transfer such con- 
 tracts to a clearing-house corporation or association, and 
 such transfer shall not be deemed to be a sale, or agree- 
 ment of sale, or an agreement to sell within the pro- 
 visions of this Act, provided that such transfer shall not 
 vest any beneficial interest in such clearing-house asso- 
 ciation but shall be made for the sole purpose of enabling 
 such clearing-house association to adjust and balance tho 
 accounts of the members of such clearing-house asso- 
 ciation on their several contracts. Every such bill, memo- 
 randum, or other evidence of sale or agreement to sell 
 shall show the date thereof, the name of the seller, the 
 amount of the sale, and the matter or thing to which it 
 refers; and any person liable to pay the tax as herein 
 provided, or anyone who acts in the matter as agent or 
 broker for such person, who makes any such sale or 
 agreement of sale, or agreement to sell, or who, in pur- 
 suance of any such sale, agreement of sale, or agreement 
 to sell, delivers any such products or merchandise with- 
 out a bill, memorandtim, or other evidence thereof as 
 herein required, or who delivers such bill, memorandum, 
 or other evidence of sale, or agreement to sell, without 
 having the proper stamps affixed thereto, with intent to 
 evade the foregoing provisions, shall be deemed guilty 
 of a disdemeanor, and upon conviction thereof shall pay 
 a fine of not exceeding $1,000 or be imprisoned not more 
 than six months, or both. 
 
 No bill, memorandum, agreement, or other evidence of 
 such sale, or agreement of sale, or agreement to sell, in 
 case of cash sales of products or merchandise for im- 
 mediate or prompt delivery which in good faith are 
 actually intended to be delivered shall be subject to this 
 tax. 
 
 6. Drafts or checks (payable otherwise than at sight ^j^^^* *<= ^ ^^,J 
 or on demand) upon their acceptance or delivery within otherwise than at 
 the United' States whichever is prior, promissory notes, mind. ™ °" ''*' 
 except bank notes issued for circulation, and for each 
 renewal of tlie same, for a sum not exceeding $100, 2 
 
 Digitized by Microsoft® 
 
560 STAMP TAXES ON SPECIFIC OBJECTS. 
 
 cents; and for each additional $100, or fractional part 
 thereof, 2 cents. 
 
 This subdivision shall not apply to a promissory note 
 secured by the pledge of bonds or obligations of the 
 United States issued after April 24, 1917, or secured by 
 the pledge of a promissory note which itself is secured 
 by the pledge of such bonds or obligations: Provided, 
 That in either case the par value of such bonds or obli- 
 gations shall be not less than the amount of such note. 
 
 Promissory notes given to or issued by Federal land 
 banks or joint stock land banks; article 53, Regulations 
 No. 55, changed. (T. D. 2954.) 
 
 Article 58, Regulations No. 55, relating to coupons and 
 interest notes, amended. (T. D. 2941.) 
 
 Oonvejanca;. r^^ Conveyances: Deed, instrument, or writing, where- 
 by any lands, tenements, or other realty sold shall be 
 granted, assigned, transferred, or otherwise conveyed to, 
 or vested in, the purchaser or purchasers, or any other 
 person or persons, by his, her or their direction, when 
 the consideration or value of the interest or property 
 conveyed, exclusive of the value of any lien or encum- 
 brance remaining thereon at the time of sale, exceeds 
 $100 and does not exceed $500, 50 cents; and for each 
 additional $500 or fractional part thereof 50 cents. 
 This subdivision shall not apply to any instrument or 
 writing given to secure a debt. 
 at^turtomhou°ef^ 8. Entry of any goods, wares, or merchandise at any 
 customhouse, either for consumption or warehousing, 
 not exceeding $100 in value, 25 cents; exceeding $100 
 and not exceeding $500 in value, 50 cents; exceeding 
 $500 in value, $1. 
 drawaPfrom'^c*- ^- ^J^^ry f Or the withdrawal of any goods or merclian- 
 tomhouse. dise from customs bonded warehouse, 50 cents. 
 
 Passage tickets, -^q Passagc ticket. One way or round trip, for each 
 passenger, sold or issued in the United States for passage 
 by any vesel to a port or place not in the United States, 
 Canada, or Mexico, if costing not exceeding $30, $1; 
 costing more than $30 and not exceeding $60, $3 ; costing 
 more than $60, $5. This subdivision shall not apply to 
 passage tickets costing $10 or less. > 
 
 ''""^* 11. Proxy for voting at any election for officers, or 
 
 meeting for the transaction of business, of any corpora- 
 tion, except religious, educational, charitable, fraternal, 
 or literary societies, or public cemeteries, 10 cents. 
 Power of attor- j2. Powcr of attomejT granting authority to do or per- 
 form some act for or in behalf of the grantor, which 
 authority is not otherwise vested in the grantee, 25 cents. 
 This subdivision shall not apply to any papers necessary 
 to be used for the collection of claims from the United 
 States or from any State for pensions, back pay, bounty, 
 or for property lost in the military or naval service, or to 
 powers of attorney required in bankruptcy cases. 
 
 Additional regulations, supplementing Regulations No. 
 
 55 ■,^Si&i§Miim^by(mid^8&m 
 
STAMP TAXES ON" SPECIFIC OBJECTS. 561 
 
 13. Playing cards : Upon every pack of playing cards ^^yi"e cards, 
 containing not more than fifty-four cards, manufactured 
 
 or imported, and sold, or removed for consumption or 
 sale, a tax of 8 cents per pack. 
 
 14. Parcel-post packages: Upon every parcel or pack- packaged' "''°'* 
 age transported from one point in the United States to 
 
 another by parcel post on which the postage amounts to 
 25 cents or more, a tax of 1 cent for each 25 cents or 
 .fractional part thereof charged for such transportation, 
 to be paid by the consignor. 
 
 No such parcel or package shall be transported until 
 a stamp or stamps representing the tax due shall have 
 been affixed thereto. . 
 
 15. On each policy of insurance, or certificate, binder, 5^^^°"^^ ^^ '"' 
 covering note, memorandum, cablegram, letter, or other 
 instrument by whatever name called whereby insurance 
 
 is made or renewed upon property within the United 
 States (including rents and profits) against peril by sea 
 or on inland waters or in transit on land (including trans- 
 shipments and storage at termini or way points) or by 
 fire, lightning, tornado, wind-storm, bombardment, inva- 
 sion, insurrection, or riot, issued to or for or in the name 
 of a domestic corporation or partnership or an individual 
 resident of the United States by any foreign corporation 
 or partnership or any individual not a resident of the 
 United States, when such policy or other instrument is 
 not signed or countersigned by an officer or agent of the 
 insurer in a State, Territory, or district of the United 
 States within which such insurer is authorized to do busi- 
 ness, a tax of 3 cents on each dollar, or fractional part 
 thereof of the premium charged : Provided, That policies 
 of re-insurance shall be exempt from the tax imposed by 
 tliis subdivision. 
 
 Any person to or for whom or in whose name any such 
 policy or other instrument is issued, or any solicitor or 
 broker acting for or on behalf of such person in the 
 procurement of any such policy or other instrument, shall 
 affix the proper stamps to such policy or other instru- 
 ment, and for failure to affix such stamps with intent to 
 evade the tax shall, in addition to other penalties pro- 
 vided therefor, pay a fine of double the amount of the 
 
 tax. 
 
 Documentary stamps prepared and distributed under 
 authority section 22, act October 22, 1914, and section 805 
 (a), act October 3, 1917, may be used for payment of taxes 
 imposed by this section. (T. D. 2893.) 
 
 Regulations relating to tax on foreign insurance policies ; 
 in substitution for article 156 of Regulations No. 55. (T. 
 D. 2891.) 
 
 The follo\ying decisions under former acts are cited for 
 reference : 
 
 Post stamping of instruments or documents of any de- 
 scription mentioned in Schedule A after the expiration of 
 twelve months from date of issue. (T. D. 21539, 1889.) 
 
 140184°— 20 36 
 
 Digitized by Microsoft® 
 
562 SIAMP TAXES QN SiPBGIFIC OBJECTS. 
 
 Collectoi's can not remit penalty for omission of stamps 
 where tiie instrument was presented more than twelve 
 monflis fifter it was issued. (T. D. 21368, July 10, 1899.) 
 
 The action of collector in stamping the instrument un- 
 der section 13, act of June 13, 1898, cures the defect and 
 operate.s retroacUvely. <T. D. 164, June 27, 1900.) 
 
 Instruments to be vaKdated may be sent to collector by 
 mail, with affidavit, instead of being personally brought 
 to the collector's office. (T. D. 20696, 1889.) 
 
 Stamping and validating instruments. <T. D. 644, T. D. 
 749.) 
 
 Instruments requiring stamps are not competent evi- 
 dence in courts unless stamped. (T. D. 21074, 1880.1 
 
 Unstamped instruments inackuissitele as evidence in Fed- 
 eral courts. (T. D. 474.) 
 
 Stamp taxes on export bills of lading unconstitutional. 
 (Fairbanks v. United States, 181 U. S., 283; T. D. 339.) 
 
 Tax on telephone messages. (New York Telephone Co. v. 
 Treaty collector, 130 Fed., 340.) 
 
 Tax on telegraphic despatches. (Kirk v. We.stein Union 
 Telegraph Co., 90 Fed., 809.) 
 
 Tax on sales of stocks. (United States v. Thomas, 192 
 U. S., 363 (T. D. 758), affirming 115 Fed., 207.) 
 
 The tax on sales of stodss was constitutional. (Christie- 
 Street Commission Co. v. United States, 129 Fed., 500 ; 120 
 Fed., 991.) 
 
 Tax on "calls" or agreements to sell stocks. (Treat v. 
 White, 181 U. S., 264 (T. D. 338), reversing 100 Fed., 290.) 
 
 Tax on sales of products or merchandise at exchange or 
 boards of trade, or other similar place, and agi-eements to 
 sell. (Nicol V. Ames, 173 U. S., 509, affirming 89 Fed., 
 144; Ingwersen v. United States, 173 U. S., 509). (The 
 Union Stock Yards of Chicago come within the act as be- 
 ing an " exchange or board of trade, or other similar 
 place.") 
 
 Tax on bonds. (Ambrosini v. United States, 187 U. S., 
 1 (T. D. 593), reversing 105 Fed., 239 (dramshop bonds 
 under State laws not taxable) ; United States v. Owens, 
 100 Fed., 70 (saloonkeepers' bonds under the laws of Mis- 
 souri not taxable) ; Bettmann v. Warwick, 108 Fed., 127 
 (bond of a notary as a qualification for office exempt) ; 
 McNally v. Field, 119 Fed., 445.) 
 
 Tax on con\-eyances. (Ohesebix)ugh r. United States, 192 
 U. S., 253 (T. D. 747) ; Mastin v. Mastin, 99 Fed., 435 (T. 
 D. 51) (deed of release executed by a receiver not liable) ; 
 Central Trust Co. of New York v. Columbus &c Ry. Co., 
 92 Fed., 919. (The deed requires stamps in proportion to 
 the " consideration of value " of the interest transferred 
 and not to the entire value of the property, where it is 
 conveyed subject to encumbrances.) 
 
 Tax on bills of lading. (Fairbank v. United States, 181 
 U. S., 283; T. D. 339.) (Export bills of lading not tax- 
 able.) 
 
 Tax on manifests. (New York & Cuba Mail Steamship 
 Co. V. United States, 125 Fed., 320. ) 
 
 Tax on express receipts. (Crawford v. Hubbell, 177 U. 
 S., 404 (T. D. 100), affirming 89 Fed., 961; United States 
 ■V. Wells, Fargo & Co. Express, 96 Fed., 835; American 
 Express Co. v. Michigan, 177 U. S., 404 ; T. D. 100. ) 
 
 Tax on insurance policies. (23 Op. Attv. Gen., 210; 22 
 Id., 318, 376; Buckatew v. United States, 102 Fed., 320; 
 42 C. C. A., 373.) 
 
 Tax on orders "for tlie payment of money. (Granby 
 Mercantile Co. v. Webster, 98 Fed., 604; T. D. 3.) 
 
 Tax on charter parties. The tax on charter parties 
 unconstitutional as applied to vessels engaged In the ex- 
 
 Digitized by Microsoft® 
 
STAMP TAXES ON SPECIFIC OBJECTS. 563 
 
 port trade. (Hvoslef v. United States, 23T U. S., 1 (T. D. 
 2186), affirming 217 Fed. 681.) 
 
 Policies of marine Insurance. The stamp tax on policies 
 of marine insurance on exported products unconstitutional 
 as a tax on exports. (Thames & Mersey Marine Insurance 
 Co. V. United States, 237 U. S., 19 (T. D. 2187), over- 
 ruling 217 Fed., 683 (T. D. 2009). 
 
 Stamps on referee's deed. Tax on deeds executed by 
 State officers not an interference with their duties or 
 operation of State government. (Home Title Insurance 
 Co. V. Keith, collector, 230 Fed., 905; T. D. 2310.) 
 
 Stamps required on master's deed. (Crawford, ris trustee, 
 V. New South Farm & Home Co., 231 Fed., 999; T. D. 22.53.) 
 
 Powers of attorney in bankruptcy proceeding.? required 
 to be stamped. (In re Capitol Trading Co., 229 Fed., 806; 
 In the Matter of Charles A. Hawley, 220 Fed., 372 ; T. D. 
 2145.) 
 
 Stamp tax on sales, agreements to sell, and agreements 
 of sale. Section 22, act of October 22, 1914. Two hundred 
 per cent penalty. Relief by injunction denied. (Kohl- 
 hamer v. Smietanka, 239 Fed. 408.) 
 
 Board of trade transactions. (Calkins v. Smietanka, 
 240 Fed., 138.) 
 
 Omission to attach required stamp to an instrument did 
 not render it invalid unless omission was fraudulent or 
 designed to evade tax. (Campbell v. Wilcox, 10 Wall., 
 421; United States v. Buzzo, 18 wall., 125.) 
 
 Digitized by Microsoft® 
 
Digitized by Microsoft® 
 
Chapter Twenty-four. 
 TAX ON EMPLOYMENT OF CHILD LABOR. 
 
 [Title XII, act of February 24, 1919 (40 Stat. 1057).] 
 
 Sec. 
 
 1200. Excise tax on net profits of busi- 
 
 ness using prohibited labor ; 
 ages, etc., designated. 
 
 1201. Net profits computed ; deductions 
 
 allowed. 
 
 1202. Sales for personal benefit at less 
 
 than market price ; computa- 
 tion of gross amount. 
 
 1203. Certificates permitting child to 
 
 work. 
 
 Sec. 
 
 1204. Yearly returns to collector. 
 
 1205. 'Assessment and payment of tax. 
 
 1206. Inspection of premises ; form of 
 
 report; punishment for ob- 
 structing inspection. 
 
 1207. " Taxable year " defined ; first 
 
 taxable year. 
 
 TITLE XII.— TAX ON EMPLOYMENT OF CHILD LABOE. 
 
 Sec. 1200. [Act of Fehruary H, 1919 (Jfl Stat., 1067).] Excise tax on 
 
 rm i '/ ii ii ^ 1 n7 1 ) • 1 5 ^^^ profits of 
 
 inat every person (other than a bona fide boys or girls' business using 
 canning club recognized by the Agricultural Department ^'°a g elf '^'ta! 
 of a State and of the United States) operating (a) any designated. 
 mine or quarry situated in the United States in which 
 children under the age of sixteen years have been em- 
 ployed or permitted to work during any portion of the 
 taxable year; or (b) any mill, cannery, workshop, fac- 
 tory, or manufacturing establishment situated in the 
 United States in which children under the age of four- 
 teen years have been employed or permitted to work, or 
 children between the ages of fourteen and sixteen have 
 been employed or permitted to work more than eight 
 hours in anj- day or more than six days in any week, 
 or after the hour of seven o'clock post meridian, or be- 
 fore the hour of six o'clock ante meridian, /during any 
 portion of the taxable year, shall pay for each taxable 
 year, in addition to all other taxes imposed by law, an 
 excise tax equivalent to 10 per centum of the entire net 
 profits received or accrued for such year from the sale 
 or disposition of the product of such mine, quarry, mill, 
 cannery, workshop, factory, or manufacturing establish- 
 ment. 
 
 Sec. 1201. That in computing net profits under the pro- Net p r o f i t s 
 visions of this title, for the purpose of the tax there shall computed ; deduc- 
 be allowed as deductions from the gross amount received 
 or accrued for the taxable year from the sale or disposi- 
 tion of such products manufactured within the United 
 States the following items: 
 
 (a) The cost of raw materials entering into the pro- 
 duction ; 
 
 (b) Running expenses, including rentals, cost of re- 
 pairs, and maintenance, heat, power, insurance, manage- ' 
 ment, and a reasonable allowance for salaries or other 
 compensations for personal services actually rendered, 
 and for depreciation; 
 
 Digitized by Microsoft® 
 
 Raw materials. 
 
 Operating ex- 
 penses. 
 
 565 
 
566 TAX ON EMPLOYMENT OF CHILD LABOB. 
 
 bJinirdlbtB."" (^) Interest paid within the taxable year on debts or 
 loans contracted to meet the meeds of the business, and 
 the proceeds of which have been actually used to meet 
 such needs; 
 
 Business taxes. (d)_Taxes of all kinds paid during the taxable year 
 with respect to the business or property relating to the 
 production; and 
 
 ^^^ (e) Losses actually sustained within the taxable year 
 
 in connection with the business of producing such prod- 
 ucts, including losses from fire, flood, storm, or other 
 casualties, and not compensated for by insurance or other- 
 
 Sales for er- ^^^^" 
 
 Bonaj ^benefit'''at Sec. 1202. That if any such person during any taxable 
 
 price!''*'' "*'''''' year or part thereof, whether under any agreement, ar- 
 
 computation of rangemeut, or understanding or otherwise, sells or dis- 
 
 grosB amount. j ij.j!i- -n 
 
 poses or any product or such mine, quarry, null, cannery, 
 workshop, factory, or manufacturing establishment at 
 less than the fair market price obtainable therefor ejther 
 (a) in such manner as directly or indirectly to benefit 
 such person or any person directly or indirectly inter- 
 ested in the business of such person; or (b) with intent 
 to cause such benefit; the gross amount received or ac- 
 crued for such year or pai't thereof from the sale or dis- 
 position of such product shall be taken to be the amount 
 which would have been received or accrued from the sale 
 or disposition of such product if sold at the fair market 
 price. 
 tifl^e"* p'er^it: S^EC. 1203. (a) That no person subject to the provi- 
 *'°\ " V ' •* *° sions of this title shall be liable for the tax herein im- 
 ^ ' ^ ' posed if the only employment or permission to work 
 
 which but for this section wouM subject him to the tax, 
 has been of a child as to whoni such person has in good 
 faith procured at the time of employing such child or 
 permitting him to work, and has since in good faith re- 
 lied upon and kept on file a certificate, issued in such' 
 form, under such conditions and by such persons as may 
 be prescribed by a board consisting 'of the Secretary, the 
 Commissioner, and the Secretary of Labor, showing the 
 child to be of such age as not to subject such person to 
 Punishment for the tax imposcd by this title. Any person who know- 
 laise stat™ent M jjigly makes a false statement or presents false evidence 
 
 to certificates, . & J . i .• . , K-n . t ,• 
 
 etc. in or in relation to any such certificate or application 
 
 therefor shall be punished by a fine of not less than $100, 
 nor more than $1,000, or by imprisonment for not more 
 than three months, or by both such fine and imprison- 
 ment, in the discretion of the court, 
 s t at e certifl- In any State designated by such board an employment 
 certificate or other similar paper as to the age of the 
 child, issued under the laws of that State, and not in- 
 consistent with the provisions of this title, shall have the 
 same force and effect as a certificate herein provided for. 
 un^"°Tn"tfonai (b) The tax imposed by this title shall not be imposed 
 mistakes. {^i the casc of any jjerson who proves to the satisfaction 
 
 of the Sec£|^je|^|r Ji^,^^@nployment or permission 
 
TAX ON EMPLOYMENT OF CHILD LABOB. 667 
 
 to work which but for this section would subject him to 
 tlie tax, has been of a child employed or permitted to 
 work under a mistake of fact as to the age of such child, 
 and without intention to evade the tax. 
 
 Sec. 1204. That on or before the first day of the third to^eoliMtof'"''^ 
 month following the close of each taxable year, a true " '^° " ™" 
 and accurate return under oath shall be made l3y each 
 person subject to the provisions of this title to the col- 
 lector for the district in which such person has his prin- 
 cipal office or place of business, in such form as the Com- 
 missioner, with the approval of the Secretary, shall pre- 
 scribe, setting forth specifically the gross income re- contents, 
 ceived or accrued during such year from the sale or dis- 
 position of the product of any mine, quarry, mill, can- 
 nery, workshop, factory, or manufacturing establishment, 
 in which children have been employed subjecting him to 
 the tax imposed by this title, and from the total thereof 
 deducting the aggregate items of allowance authorized 
 by this title, and such other particulars as t» the gross 
 receipts and items of allowance as the Commissioner, 
 with the approval of the Secretary may require. 
 
 Sec. 1205. That all such returns shall be transmitted ^nd^ pi^ent^of 
 forthwith by the collector to the Commissioner, who tax. 
 shall, as soon as practicable, assess the tax found due and 
 notify the person making such return of the amount of 
 tax for which such person is liable, and such person shall 
 pay the tax to the collector on or before thirty days from- 
 the date of such notice. 
 
 Sec. 1206. That for the purposes of this Act the Com- inspection o t 
 missioner, or any other person duly authorized by him, p"''"'^'^' 
 shall have authority to enter and inspect at any time any 
 mine, quarry, mill, cannery, workshop, factory, or manu- 
 facturing establishment. The Secretary of Labor, or g^"™ °* '*" 
 anv person duly authorized by him, shall, for the pur- 
 pose of complying with a request of the Commissioner 
 to make such an inspection, have like authority, and shall 
 make report to the Commissioner of inspections made 
 under such authority in such form as maj^ be prescribed 
 by the Commissioner with the approval of the Secretary 
 of the Treasury. 
 
 Any person who refuses or obstructs entry or inspec- Punishment for 
 tion authorized by this section shall be punished by a fine spectlon!"^ 
 of not more than $1,00,0, or by imprisonment for not 
 more than one year, or both such fine and imprisonment. 
 
 Sec. 1207. That as used in this title the term " taxable ', » ^ a Id ' ° 
 year " shall have the same meaning as provided for the ^^^ 
 purposes of income tax in section 200.* The first tax- First taxable 
 able year for the purposes of this title shall be the period 
 between sixty days after the passage of this Act and De- 
 cember 31, 1919, both inclusive, or such portion of such 
 period as is included within the fiscal year (as defined in 
 section 200) of the taxpayer. 
 
 * See p. 473. . 
 
 Digitized by Microsoft® 
 
Digitized by Microsoft® 
 
Chapter Twektt-five. 
 PLAYING CARDS. 
 
 [Acts of August 27, 1894 (28 Stat. 509) ; February 24, 1919 (40 Stat. 1057).] 
 
 Sec. 
 
 3S. Tax of 2 cents on every pack, con- 
 taining not more tlian fifty-four 
 cards, wliether manufactured, 
 sold, or removed, or in stock of 
 any dealer. 
 
 39. Adhesive stamps to be affixed to 
 
 each package, and canceled by 
 thQ person using the stamp ; 
 penalty, $50. 
 
 40. Manufacturer to register with the 
 
 collector of the district ; failure 
 to register, penalty $.50. 
 
 41. Stamps to be furnished by the col- 
 
 lector to registered manufac- 
 turers and Importers. 
 
 42. Penalty for counterfeiting, defac- 
 
 ing, or removing stamp or illegal 
 use of the same. 
 
 43. Penalty for removal or sale of play- 
 
 ing cards without having stamp 
 affixed ; cards removed for ex- 
 port without previous payment of 
 tax. 
 
 Sec. 
 
 44. Manufacturer removing or reusing 
 
 any stamp, wrapper, or cover for 
 the purpose of evading the tax 
 liable to a fine of $50 and for- 
 feiture. 
 
 45. Penalty for selling or exposing for 
 
 sale, removing, or concealing 
 playing cards without having af- 
 fixed the stamp thereto. 
 
 46. Every person who offers or ex- 
 
 poses for sale any playing cards, 
 whether of domestic or foreign 
 manufacture, shall be deemed the 
 manufacturer thereof and liable 
 to the tax. 
 
 47. Assessment to be made by the 
 
 Commissioner in certain cases. 
 1100. [Subd. 13, Schedule A, Title XI, 
 
 Act of February 24, 1919.] Tax 
 
 of 8 cents per pack imposed. 
 1102. [Act of February 24, 1919 (40 
 
 Stat., 1057).] Failure to pay 
 
 tax, misdemeanor. 
 
 Sec. 38. [Act of August 27, 1894. {^8 Stat., 509). 
 That on and after the first day of August, eig 
 hundred and ninety- four, there shall be levied, collected, 
 and paid, by adhesive stamps, a tax of tv70 cents for and 
 upon every pack of playing cards containing not more 
 than fifty-four cards, manufactured and sold or removed, 
 and also upon every pack in the stock of any dealer on 
 and after that date; and the Commissioner of Internal 
 Eevenue, with the approval of the Secretary of the Treas- 
 ury, shall make regulations as to dies and adhesive 
 stamps. 
 
 The act of October 3, 1917, amended this section so as 
 to impose an additional tax of 5 cents per pack, or a total 
 of Y cents on each pack. Subdivision 13, Schedule A, Title 
 XI, act of February 24, 1919, amended the former laws and 
 provided a tax of 8 cents per pack. (See p. 574.) 
 
 AYhere packages of playing cards are sent out from the 
 factory duly stamped and are thereafter opened and stamp 
 broken, the cards can not be returned to the packages and 
 sold under a broken stamp ; a new stamp must be affixed 
 to each package and duly canceled. (T. D. 21634.) 
 
 If cards are reassembled from packs on which tax has 
 been paid, each deck must- show the requisite stamp. 
 (United States v. Neustaedter, 149 Fed., 1010; T. D. 1100.) 
 
 Digitized by Microsoft® 
 
 Tax of 2 cents 
 - . , -■ upon every pack 
 
 eighteen of playing cards. 
 
 569 
 
570 PLAYING CARDS. 
 
 Miniature playing cards, intended for use with packages 
 of merchandise, one card to a paclsage, must be put up' ia 
 packages and properly stamped by the manufacturer. (T. 
 D. 843.) 
 
 Tax must be paid on every pack of cards intended for 
 use in playing games of skill or chance in lieu of ordinary 
 playing cards. (T. D. 959.) 
 
 Tax must be paid ou every pack of cards even though con- 
 taining half the ordinary number of cards. (T. D. 1023.) 
 
 carfceiiitfon ^ ° f ^^^- ^^- That ill all cases where an adhesive stamp is 
 stamp. Used for denoting the tax imposed by this Act upon play- 
 
 ing cards, except as hereinafter provided, the person 
 using or affixing the same shall write thereon the initials 
 of his name and the date on which such stamp is attached 
 or used so that it may not again be used. And every 
 person who fraudulently makes use of an adhesive stamp 
 to denote any tax imposed by this Act without so effec- 
 tually cancelling and obliterating such stamp shall forfeit 
 the sum of fifty dollars. The 'Commissioner of Internal 
 Eevenue is authorized to prescribe such method for the 
 cancellation of stamps as substitute for, or in addition 
 to the method prescribed in this section as he may deem 
 expedient and effectual. And he is authorized, in his 
 discretion, to make the application of such method im- 
 perative upon the manufacturers of playing cards. 
 . Manufacturer Qec. 40. That every manufacturer of playing cards 
 OTiiecto?,^pemity shall register with the collector of the district his name 
 Sl^ $5o"'^ *" ^° or style, place of residence, trade, or business, and the 
 place where such business is to be carried on, and a fail- 
 ure to register as herein provided and required shall sub- 
 ject such person to a penalty of fifty dollars. 
 
 Where playing cards are lithographed on large sheets, 
 and sent to another person to be cut and finished, the latter 
 is held to be the manufacturer and required to register and 
 stamp the cards. (T. D. 410.) 
 
 stamps to be Seo. 41. That the Commissioner of Internal Revenue 
 tore and tonish- shall cause to be prepared, for payment of the tax upon 
 manufa^fturCTs'' P^^J^S cards, suitablc stamps denoting the tax thereon. 
 tapOTtere! ""a Such stamps shall be furnished to collectors requiring 
 stociron hand!"^ them, and collectors shall, if there be any manufacturers 
 of playing cards within their respective districts, keep on 
 hand at all times a supply equal in amount to two months' 
 sales thereof, and shall sell the same only to such manu- 
 facturers as have registered as required by law and to 
 importers of playing cards, who are required to affix the 
 same to imported playing cards, and to persons who are 
 required by law to affix the same to stocks of playing 
 cards on hand when the tax thereon imposed first takes 
 effect. Every collector shall keep an account of the num- 
 ber and denominate values of the stamps sold by him to 
 each manufacturer and to other persons above described. 
 
 Decision as to packing ahd stamping cards when sold in 
 leather, plush, celluloid, or metal cases. (T. D. 19024, 
 1898.) 
 
 Digitized by Microsoft® 
 
, same. 
 
 PIATIKG CAEDS. &*I1 
 
 Sec. 42. That if any person shall forge or counterfeit, co^uUt^feiting, 
 or cause or procure to be forged or counterfeited, any defacing, or rel 
 stamp, die, plate, or other instrument, or any part of any "" Yniai u^oi 
 stamp, die, plate, or other instrument which shall have' 
 been provided or may hereafter be provided, made, or 
 used in pursuance of the provisions of this Act or of any 
 previous provisions of law on the same subjects, or shall 
 forge, counterfeit, or resemble, or cause or procure to be 
 forged, counterfeited, or resembled the impression or any 
 part of the impression of any such stamp, die, plate, or 
 other instrument, as aforesaid, upon any paper, or shall 
 stamp or mark or cause or procure to be stamped or 
 marked any paper with any such forged or counterfeited 
 stamp, die, or plate, or other instrument or part of any 
 sta'mp, die, plate, or other instrument, as aforesaid, witii 
 intesnt to defraud the United States of any of the taxes 
 hereby imposed or any part thereof; or if any person 
 shall utter, or sell, or expose to sale any paper, article, 
 or thing having thereupon the impression of any such 
 counterfeited stamp, die, plate, or other instrument, or 
 any part of any stamp, die, plate, or other instrument, 
 or any such forged, counterfeited, or resembled impres- 
 sion, or part of impression, as aforesaid, knowing the 
 same to be forged, counterfeited, or resembled or if any 
 person shall knowingly use or permit the use of any 
 stamp, die, plate, or other instrument which shall have 
 been so provided, made, or used, as aforesaid, with intent 
 to defraud the United States; or if any person shall 
 fraudulently cut, tear, or remove, or cause or procure to 
 be cut, torn, or removed, the impression of any stamp, die, 
 plate, or other instrument, which shall have been pro- 
 vided, made, or used in pursuance of this Act, or of any 
 previous provisions of law on the same subjects, from 
 any paper, or any instrument or writing chai-ged or 
 chargeable with any of the taxes imposed by law ; or if 
 any person shall fraudulently use, join, fix, or place, or 
 caused to be used, joined^ fixed, or placed, to, with, or 
 upon any paper, or any instrument or writing charged 
 or chargeable with any of the taxes hereby imposed, any 
 adhesive stamp, or the impression of any stamp, die, 
 plate, or other instrument, which sliall have been pro- 
 vided, made, or used in pursuance of law, and which 
 shall have been cut, torn, or removed from any other 
 paper or any instrument or writing charged or charge- 
 able with any of the taxes imposed by law ; or if any per- 
 son shaJl willfully remove or cause to be removed, alter 
 or cause to be altered, the cancelling or defacing marks on 
 any adhesive stamp, with intent to use the same, or to 
 cause the use of the same, after it shall have been once 
 used, or shall knowingly or willfully sell or buy such 
 washed or restored stamps or offer the same for sale, or 
 give or expose the same to any person for use, or know- 
 ingly use the same, or 'prepare the same with intent for 
 
 Digitized by Microsoft® 
 
572 PLAYING CARDS, 
 
 the further use thereof ; or if any person shall knowingly 
 ahd without lawful excuse (the prooi whereof shall lie 
 on the person accused) have in his possession any washed, 
 restored, or altered stamps, which have been removed 
 from any article, paper, instrument, or writing, then, 
 and in every such case, every person so offending, and 
 every person knowingly and willfully aiding, abetting, 
 or assisting in committing any such offense as aforesaid, 
 shall, on conviction thereof, forfeit the said counterfeit, 
 washed, restored, or altered stamps, and the articles upon 
 which they are placed and be punished by fine not ex- 
 ceeding one thousand dollars, or by imprisonment and 
 confinement to hard labor not exceeding five years, or 
 both, at the discretion of the court. And the fact that 
 any adhesive stamp so bought, sold, offered for sale, used, 
 or had in possession as aforesaid, has been washed or 
 restored by removing or altering the cancelling or de- 
 facing marks thereon, shall be prima-facie proof that 
 such stamp has been once used and removed by the pos- 
 sessor thereof from some paper, instrument, or writing 
 charged with taxes imposed by law, in violation of the 
 provisions of this section. 
 
 This is a substantial reenactment of section 3429, Re- 
 vised Statutes, as amended by section 17, act of March 1, 
 1879, tlie only change being the substitution of the word 
 "act" for "chapter." 
 
 Penalty tor re- gj;c. 43. That whenever any person makes, prepares, 
 
 mov 
 
 playing c a r d s and scUs or leuioves tor consumption or sale, playing 
 
 rtamp^'afBxId!"^ cards, whether of domestic manufacture or imported, 
 
 upon which a tax is imposed by law, without affixing 
 
 thereto an adhesive stamp denoting the tax before mem- 
 
 tioned, he shall incur a penalty of fifty dollars for every 
 
 Playing cards omissiou to affix such stamp : Provided^ That playing 
 
 cepted?"""^' " cards may be removed from the place of manufacture 
 
 for export to a foreign country, without payment of tax 
 
 or affixing stamps thereto, under such regulations and 
 
 the filing of such bonds as the Commissioner of Internal 
 
 Eevenue, with the approval of the Secretary of the 
 
 Treasury, may prescribe. 
 
 Concerning the exportation without payment of tax of 
 playing cards, see Regulations No. 29. See also Supplement 
 No. 1, T. D. 1834. 
 
 Exportation of 'playing cards by parcels post. (T. D. 
 1668, T. D. 1858.) 
 
 Where a box of playing cards is opened and cards with-. 
 drawn, a new stamp must be alfixed to the package be- 
 fore its resale. The broken stamp can not protect the 
 package. In sending ■ packs of cards abroad, even as 
 samples, all the provisions of the law and regulations re- 
 lating to the exportation of playing cards must be complied 
 with, unless tax stamps are affixed to these packages. 
 (T. D. 21669.) 
 
 moraT' or '"reuse ^'^^- **• ^hat evcry manufacturer or maker of playing 
 (.{ stamp, wrap- cards who, after the same are so made, and the particu- 
 tbe' 1Jur™os" 'S5 lars hereinbefore required as to stamps have been com- 
 evading the tax. pijej witH^/fittfegcfoiaj^ hflmQ^^^v dctachcs, or causes, or 
 
PLAYING CARDS. 573 
 
 permits, or suffers to be taken off, or removed, or de- 
 tached, any stamp, or who uses any stamp, or any wrap- 
 per or cover to which any stamp is affixed, to cover any 
 other article or commodity than that originally con- 
 tained in such wrapper or cover, with such stamp when 
 first used, with the intent to evade the stamp duties, shall, 
 for every such article, respectively, in respect of which 
 any such offense is committed, be subject to a penalty of 
 fifty dollars, to be recovered together with the costs 
 thereupon accruing ; and every such article or commodity 
 as aforesaid shall also be forfeited. 
 
 Sec. 45. That every maker or manufacturer of play- Penalty for 
 ing cards who, to evade the tax or duty chargeable there- ing' tor°Li?^?e- 
 on, or any part thereof, sells, exposes for sale, sends out, |^5in|' p'iayi™g 
 removes, or delivers any playing cards before the duty cards without at- 
 thereon has been fully paid, by affixing thereon the '""^ ^ stamp. 
 proper stamp, as provided by law, or who, to evade as 
 aforesaid, hides or conceals, or causes to be hidden or 
 concealed, or removes or conveys away, or deposits, or 
 causes to be removed or conveyed away from or deposited 
 in any place, any such article or commodity, shall be 
 subject to a penalty of fifty dollars, together with the 
 forfeiture of any such article or commodity. 
 
 Sec. 46. That the tax on playing cards shall be paid ^^ ''^^''^"^^ cards 
 by the manufacturer thereof. Every person who offers foreign^m an u - 
 or exposes for sale playing cards, whether the articles so b^e'^o'fflrld^OT ex- 
 offered or exposed are of foreign manufacture and im- po^ed for sale 
 ported or are of domestic manufacture, shall be deemed Sam™ denoting 
 the manufacturer thereof, and subject to all the duties, p^y""™' «' *^^- 
 liabilities, and penalties imposed by law in regard to the 
 sale of domestic articles without the use of the proper 
 stamps denoting the tax paid thereon, and all such 
 articles of foreign manufacture shall, in addition to the 
 import duties imposed on the same, be subject to the 
 stamp tax prescribed in this Act. 
 
 Sec. 47. That whenever any article upon which a tax . Assessment to 
 
 . .1,1 •!, •' (• , ^ • IT be made withm 
 
 IS required to be paid by means oi a stamp is sold or re- two years in cer- 
 moved for sale by the manufacturer thereof, without the 
 use of the proper stamp, in addition to the penalties im- 
 posed by law for such sale or removal, it shall be the duty 
 of the Commissioner of Internal Eevenue, within a 
 period of not more than two years after such removal or 
 sale, upon such information as he can obtain, to estimate 
 the amount of the tax which has been omitted to be paid, 
 and to make an assessment therefor upon the manu- 
 facturer or producer of such article. He shall certify 
 such assessment to the collector, who shall immediately 
 demand payment of such tax, and upon the neglect or 
 refusal of payment by such manufacturer or producer, 
 shall proceed to collect the same in the manner provided 
 for the collection of other assessed taxes. 
 
 This is a reenactment, without change, of section 3437, 
 Revised Statutes. 
 
 Digitized by Microsoft® 
 
 tain cases. 
 
574 gPLAlYING CMl®S. 
 
 Cards fer game called "authors," aad the like, diffiering 
 wholly from ordinary pla,ying cards, are Tield not to be 
 sxfcject to tax tinder this act. 
 
 It is held that -any nvinrber &i -csoAs in a dect above 54 
 and not exceeding anotlheT of 54 must be regarded, for the 
 purposes of this a.ct, as belonging to another pack, upon 
 which an additional tax of 2 cents must be paid. (40 Iitt. 
 Eev. Rec, 277.) 
 
 Sec. 1100. [Act of February U, ^919 {Ifl gtaL, 1057),'\ 
 That on and after April 1, 1919, thare shall be levied, 
 collected, and paid, for and in respect of the several 
 * * * matters, and things mentioned and descrihed in 
 Schedule A of this title, or for or in respect of the vellum, 
 parchment, or paper upon which such instruments, mat- 
 ters, or things, or any of them, are written or printed, 
 ty any person who niakes, signs, issues, sells, removes, 
 consigns, or ships the same, or for whose use or benefit 
 the same are made, signed, issued, sold, removed, con- 
 * signed, or shipped, the several taxes specified in such 
 schedule. Tbe taxes imposed by this section shall, in the 
 case of any article upon which a corresponding stamp 
 tax is now imposed by law, be in lieu of such tax. 
 
 SCHEBXJLE A. STAMP TAXES. 
 
 13. Playing cards : Upon every pack of playing cards 
 containing not more than fifty -four cards, manufactured 
 or imported, and sold, or removed for consumption or 
 sale, a tax of 8 cents per pack. 
 
 Regulations concerning collection of tax, and requiriTig 
 monthly returns of manufacturers and importers. (T. D. 
 
 2817.) 
 
 Sec. 1102. [Act of February H, 1919 (JfO Stat., 1057).] 
 That whoever — ' 
 
 (c) Manufactures or imports and sells, or offers for 
 sale, or causes to be manufactured or imported and sold, 
 or offered for sale, any playing cards, '•f * * -with- 
 out the full amount of tax being duly paid ; 
 
 1^ ^. Sfi :{: )}; :{: -^f: 
 
 Is guilty of a misdemeanor and upon conviction there- 
 of shall pay a fine of not more than $100 for each of- 
 fense. 
 
 Digitized by Microsoft® 
 
Chapter Twentt^six. 
 BANKS AND BANKERS. 
 
 Sec. 
 
 3407. Definition of words " bank " and 
 " banker." 
 
 8408 (amended). Tax on circulation 
 of banks and bankers. 
 
 3409. Taxes, wlien payable ; how cal- 
 culated. 
 
 3411. Circulation, when exempted from 
 
 tax. 
 
 3412. Tax on notes of persons or State 
 
 banks used as circulation, etc. 
 
 3413. Tax on notes of town, city, or 
 
 municipal corpoi-atlons paid 
 out by banks, etc. 
 19. Act February 8, 1875. Tax on 
 certain parties' own notes used 
 for circulation and paid out 
 by them. 
 
 Sec. 
 
 20. (Same.) Tax on circulation 
 
 other than national banks used 
 and paid out. ^ 
 
 21. ( Same. ) Return of amounts and 
 
 payment of tax. 
 
 3414. Banks' and bankers' monthly re- 
 
 turns. 
 
 3415. In default of return. Commis- 
 
 sioner to estimate, etc. 
 
 3416. State banks converted into na- 
 
 tional banks ; returns, how 
 made. 
 
 3417. Certain provisions of this chapter 
 
 not to apply to national banks. 
 
 22. Act March 1, 1879. Insolvent 
 
 banks exempt from tax. 
 
 Sec. 3407. Every incorporated or other bank, and worff°''"°bank''' 
 every person, firm, or company having a place of busi- and "banker." 
 ness where credits are opened by the deposit or collection 
 of money or currency, subject to be paid or r-emitted upon 
 draft, check, or order, or where money is advanced or 
 loaned on stocks, bonds, bullion, bills of exchange, or 
 promissory notes, or where stocks, bonds, bullion, bills 
 of exchange, or promissory notes are received for dis- 
 count or for sale, shall be regarded as a bank or as a 
 banker. 
 
 Who are bankers under thi« section? (Seldon r. Equi- 
 table Trust Co., 94 U. S. 419 ; 23 Int. Rev. Rec. 171 ; War- 
 ren V Shook, 91 U. S. 704; 22 Int. Rev. Rec. 77.) 
 
 Liability of foreign banks doing business in United 
 States. Suits to recover taxes on capital employed. 
 (United States v. Bank of Montreal; 30 Int. Rev. R«c. 310; 
 21 Fed. 236.) 
 
 A loan and trust company regarded as a bank. (United 
 States V. Farmer's 1,. & T. Co., 25 Fed. Cas. No. 15070; 3 
 Int. Rev. Rec. 62.) 
 
 Seo. 3408. There shall be levied, collected, and paid, as 
 
 hereafter provided: 
 
 * * * * » * « 
 
 Third. A tax of one-twelfth of one per ceatimi each aJl"^ °" "'"'"'*" 
 month upon the average amount of circulation issued by 
 any bank, association, corporation, company, or person, 
 including as circulation all certified checks and all notes 
 and other obligations calculated or intended to circulate 
 or to be used as money, but not including that in the 
 
 Digitized by Microsoft® 
 
 575 
 
576 BANKS AND BANKEES. 
 
 vault of the bank, or redeemed and on deposit for said 
 bank; and an additional tax of one-sixth of one per 
 centum each month upon the average amount of such 
 circulation, issued as aforesaid, beyond the amount of 
 ninety per centum of the capital of any such bank, as- 
 sociation, corporation, company, or .pei'son. 
 of branch "banks" In the case of bauks with branches, the tax herein pro- 
 vided shall be assessed upon the circulation of each branch 
 severally, and the amount of capital of each branch shaU 
 be considered to be the amount allotted to it. 
 
 Taxes on deposits and capital repealed. Act of March" 
 3, 1883. (22 Stat., 488.) The taxation ceased December 
 1, 1882. (29 Int. Rev. Eec, 171; 17 Op. Atty. Gen., 539.) 
 
 When the plaintiff admits that his business was that of 
 buying and selling stocks for his customers, and that in 
 such business he employed capital, he proves that he was 
 a banker within the statutory definition, and that, within 
 the meaning of section 3408, his capital was employed In the 
 business of banking. (Richmond v. Blake, 132 U. S., 592; 
 36 Int. Rev. Rec, 24.) 
 
 The tax on circulation of national banks is paid to the 
 Treasurer of the United States. (Sec. 5214 as amended. 
 See sec. 3417, p. 580.) 
 
 Certificates of indebtedness issued by a person or a cor- 
 poration are not taxable as " circulation " under section 
 3^8, unless intended to circulate as money. (United 
 States V. Wilson, 106 U. S., 620.) 
 
 What is capital? (Mechanics and Farmers' Bank v. 
 Townsend, 5 Blatch., 315.) 
 
 Merchants Nat'l Bank v. United States, 42 Ct. Cls., 6. 
 
 pajawe.' ^^^'^ Sec. 3409. The taxcs provided in the preceding scction 
 shall be paid semi-annually, on the first day of January 
 
 Jated." " '^*'™" and the first clay of July ; but the same shall be cal- 
 culated at the rate per month as prescribed by said sec- 
 tion, so that the tax for six months shall not be less than 
 the aggregate would be if such taxes were collected 
 monthly. 
 
 In regard to abating tax against insolvent national, State, 
 and savings banks, see section 22, act of March 1, 1879 
 (20 Stat., 327), and Supplement, Revised Statutes No. 1, 
 page 243. (Johnston r. United States, 17 Ct. Cls., 157; 
 Jackson r. United States, 20 Ct. as., 304.) See p. 580. 
 
 ^h^en'^ixempteli Sec. 3411. Whcuever the outstanding circulation of 
 from tax. any bank, association, corporation, compan}', or person, 
 
 is reduced to an amount not exceeding five per centum 
 of the chartered or declared capital existing at the time 
 the same was issued, said circulation shall be free from 
 taxation, and whenever any bank which has ceased to 
 issue notes for circulation deposits in the Treasury of 
 the -United States, in lawful money, the amount of its 
 outstanding circulation, to be redeemed at par, under 
 such regulations as the Secretary of the Treasury shall 
 prescribe, it shall be exempt from any tax upon such cir- 
 culation. 
 
 Legislation affecting taxes upon the circulation of State 
 banks. (Merchants National Bank v. United States, 42 
 Ct. Cls., 6.) 
 
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BANKS AXI) BAXKEES. 677 
 
 Sec. 3112. Every national banking association, State peSns°"o?°steti 
 bank, or State banking association, shall pay a tax of ten banks used as cir- 
 per centum on the amount of notes of any person, or of ''"^^''°"' ^'■'-^■ 
 any State bank or State banking association, used for 
 circulation and paid out by them. 
 
 The act of March 3, 1875 (18 Stat., 507), provided that 
 the Secretary of the Treasury be authorized and directed 
 to settle and release any claims for tax on circulation of 
 evidences of indebtedness made against any mining, manu- 
 facturing, or other corporations otlier than against any 
 national banking association, State bank or banking asso- 
 ciation, by such corporations paying the tax, without pen- 
 alt.\-. that shall have accrued thereon since November 1, 1873. 
 
 Internal-revenue tax on State banks. (14 Op. Atty. Gen., 
 98; 16 Int. Rev. Rec, 57.) 
 
 The tax of 10 per cent on State bank circulation was de- 
 signed to drive all such circulation out of existence. (Re- 
 mark of the court in Head Jloney Cases, 112 U. S., 580, 
 596.) 
 
 Sec. 3413. Every national banking association, State Tax on notes 
 bank, or banker, or association, shall pay a tax of ten per ^'u*°eip'ai"corpo- 
 centum on the amount of notes of any town, city, or rations, paid out 
 municipal corporation, paid out by them. ^ *" ^' ^*°" 
 
 This tax not a direct tax and not repugnant to the Con- 
 stitution. (\'eazie Bank v. Fenno, 8 Wall., 533 ; 10 Int. Rev. 
 Rec, 195.) 
 
 Above decision cited and approved (National Bank v. 
 United States, 101 U. S., 1) where the United States sued 
 a national bank for 10 per cent of tlie notes of the city 
 of Little Rock paid out. 
 
 Tax on circulation of State banks (Deposit Savings As- 
 sociation V. Marks, 3 Woods, 533; 23 Int. Rev. Rec, 241, 
 Fed. Cas. No. 3813). 
 
 Section 3.583 provided a penalty for issuing notes for a 
 less sum than $1 intended to circulate as money. (United 
 States V. Van Auken, 96 U. S. (6 Otto), 366; 24 Int. Rev. 
 Rec, 204; United States v. Roussopulous, 95 Fed., 977.) 
 
 Section 3-583 has been reproduced in section 178 of the 
 Criminal Code. Act of March 4, 1909. (35 Stat., 1088.) 
 
 Sec. 19. [Act of February 8, 1875 {18 Stat. 311).] Ten per cent 
 That every person, firm, association other than national ^Ser°'tha''ir*na- 
 bank associations, and every corporation^ State bank, or tjonai J^^iis, on 
 State banking association, shall pay a tax of ten per used forcircuiat 
 centum on the amount of their own notes used for cir- *„("' """^ p"'"^ 
 culation and paid out by them. 
 
 • Sec. 20. [Act of Felruary 8, 1875 {18 Stat. 311).] Ten per eent 
 That every such person, firm, association, corporation, ^^^^ °^^ o'tTl^r 
 State bank, or State banking association, and also every t h^an ^^n|tio™^ 
 national banking association, shall pay a like tax of ten paFa out.^^ 
 per centum on the amount of notes of any person, firm, 
 association other than a national banking association, or 
 of any corporation. State bank, or State banking associa- 
 tion, or of any town, city, or municipal corporation, used 
 for circulation and paid out by them. 
 
 The main ob.lect of the Federal legislation on this sub- 
 ject was to secure for the national currency the exclusive 
 use in the United States as a circulating medium ; and this 
 
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678 BANKS AND BANKERS. 
 
 object was souglit to be effected by imposing upon all com- 
 petitive money such a tax as would make its issue un- 
 profitable. (21 Op. Atty. Gen., 560.) 
 
 The effect of the act of February 8, 1875, was to extend 
 sections 3412 and 3413, which included only banks and 
 banking associations, to all persons, firms, associations, and 
 corporations. The subject matter of the tax, to wit, " notes 
 used for circulation paid out by them," was the same. 
 
 Construction of sections 19 and 20, act of February 8, 
 1875. (21 Int. Eev. Rec, 346.) 
 
 "Wages certificates" of Philadelphia & Reading Railroad 
 taxable. (16 Op. Atty. Gen., 341; 25 Int. Rev. Rec, 167; 
 see Philadelphia & R. R. Co. v. Pollock, 19 Fed. 401.) 
 
 Tax limited to obligations payable in money. (HoUister 
 V. Zion's Co-operative Mercantile Institution, 111 U. S., 
 62; 80 Int. Rev. Rec, 111. In re Aldrich, 16 Fed. 369.) 
 
 Glass manufacturers' cases. Warrick and Stanger were 
 glass manufacturers and Issued their notes in various 
 amounts, from 5 cents to $5 each, in payment of wages. 
 These notes circulated as money, and when redeemed were 
 constantly reissued. Every issue of the notes taxable. 
 (United States v. Warrick, 31 Int. Rev. Rec, 327; 25 
 Fed. 138.) 
 
 A national bank paying out on checks and otherwise 
 notes of a bank chartered in a foreign country is subject 
 to tax of 10 per cent upon the total amount of all notes it 
 has received and used as a circulating medium. (20 Op. 
 Atty. Gen. 534.) 
 
 Notes of Canadian Banks (33 Int. Rev. Rec, 405; 34 
 Id., 53, 61, 77, 93 and 94; also T. D. 20507.) 
 
 A bank is not regarded as paying out Canadian bank 
 notes when it simply sends the notes to Canada lor re- 
 demption. (34 Int. Rev. Rec, 101.) 
 
 Tax on circulation of notes other than those issued by 
 national banks applies to Canadian bank notes. (T. D. 
 2782.) ■ 
 
 Notes of the Dominion of Canada not taxable. (34 Int. 
 Rev. Rec, 61.) 
 
 Notes of State banks taxable. (T. D. 784.) 
 
 Certified checks of State banks not notes. (T. D. 885.) 
 
 Ice tickets not taxable. (19 Op. Atty. Gen. 98.) 
 
 Opinion of the Attorney General as to whether pay- 
 roll checks issued by manufacturers and others, and certi- 
 ficates issued by clearing-house associations when used for 
 circulation, are notes within the meaning of section 19, 
 act of February 8, 1875. The tax applies only to promis- 
 sory notes. (39 Int. Rev. Rec, 398 ; 29 Op. Atty. Gen. 681.) 
 
 Persons, corporations, banks, etc, purchasing from 
 foreigners and returning tourists notes of foreign banks 
 and corporations for resale to persons going abroad, not 
 liable for 10 per- cent tax if such notes are not used for cir- 
 culation in United States. (T. D. 1041.) 
 
 Clearing-house certificates not notes within the meaning 
 of section. (T. D. 1271.) 
 
 amo'unt's\nd Sec. 21, {Aot of Fehruavy 8, 1875 (18 Stat. Sll).] 
 payment of tax. That the amount of such circulating notes, and of the 
 tax due thereon, shall be returned, and the tax paid at 
 the same time, and in the same manner, and with like 
 penalties for failure to return and pay the same, as pro- 
 vided by law for the return and payment of taxes on 
 * * * circulation, imposed by the existing provisions 
 of internal revenue law. 
 
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BANKS AND BANKERS. 679 
 
 Sec. 3414. A true and complete return of the monthly . Banks' and 
 
 A. p • T !_• ife** p .-1 T^o bankers' month- 
 
 amount or circulation, * * * as atoresaid, and or ly returns. 
 the monthly amount of notes of persons, town, city, or 
 municipal corporation, State banks, or State banking 
 associations paid out as aforesaid for the previous six 
 months, shall be made and rendered in duplicate on the 
 first day of December and the first day of June, by each 
 of such banks, associations, corporations, companies, or 
 persons, with a declaration annexed thereto, under the 
 oath of such person, or of the president or cashier of 
 such bank, association, corporation, or company, in such 
 form and manner as may be prescribed by the Commis- 
 sioner of Internal Revenue, that the same contains a true 
 and faithful statement of the amounts subject to tax, 
 as aforesaid; and one copy shall be transmitted to the 
 collector of the district in which any such bank, asso- 
 ciation, corporation, or company is situated, or in which 
 such person has his place of business, and one copy to the 
 Commissioner of internal Revenue. 
 
 The words " of deposits and of capital " are omitted in 
 line 2 as obsolete. 
 
 Sec. 3415. In default of the returns provided in the }'> 'J*'^"" P* 
 
 T ,. .1 J/*'!,. -fcj,.!. return, Commis- 
 
 preceding section, the amount or circulation, * * * sioner to esti- 
 and notes of persons, town, city, and municipal corpora- ™**'' ^*°' 
 tions. State banks, and State banking associations paid 
 out, as aforesaid, shall be estimated by the Commissioner 
 of Internal Revenue, upon the best information he can 
 obtain. And for any refusal or neglect to make return 
 and payment, any such bank, association, corporation, 
 company, or person so in default shall pay a penalty of 
 two hundred dollars, besides the additional penalty and 
 forfeitures provided in other cases. 
 
 The words " deposits, capital " omitted in line 2. 
 See section 3176, page 108, as to additional penalties. 
 (United States v. N. Y. Guaranty Co., 8 Ben. 269, 27 Fed. 
 Cas., No. 15, 872; 21 Op. Atty. Gen., 564.) 
 
 Sec. 3416. "Whenever any State bank or banking asso- state bank a 
 elation has been converted into a national banking as- national banks" 
 sociation, and such national banking association has J„|^j" "■ " ^' '""' 
 assumed the liabilities of such State bank or banking 
 association, including the redemption of its bills, by any 
 agreement or understanding whatever with the repre- 
 sentatives of such State bank or banking association, 
 such national banking association shall be held to make 
 the required return and payment on the circulation out- 
 standing, so long as such circulation shall exceed five 
 per centum of the capital before such conversion of such 
 State bank or banking association. 
 
 This section is practically obsolete. 
 
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580 
 
 BANKS AND BANKERS. 
 
 Bionl''**o? thfs Sec. 3417. The provisions of this chapter, relating to 
 chapter not to the tax On the * * circulation of banks, and to their 
 bankl " "* """* rcturns, except as contained in sections * thirty-four 
 18*5°' (is^stat^i hundred and eleven, thirty- four hundred and twelve, 
 319)- " thirty-four hundred and thirteen, and thirty-four hun- 
 
 dred and sixteen, and such parts of sections thirty- four 
 hundred and fourteen, and thirty-four, hundred and fif- 
 teen as relate to the tax of ten per centum on certain 
 notes, shall not apply to associations which are taxed 
 under and by virtue of Title " National Banks." 
 
 Indictment following language of section is sufficient, 
 although it does not aver that tax was not paid. (Rosenfeld 
 V. United States, 202 Fed., 469.) 
 
 ex'e^ft''™'fr*o"m [^^'^ Mavck 1, 1879 {£0 Stat., 351).] Whenever and 
 lax. after any bank has ceased to do business by reason of in- 
 
 solvency or bankruptcy, no tax shall be assessed or col- 
 lected, or paid into the Treasury of the United States, 
 on account of such bank, which shall diminish the assets 
 thereof necessary for the full payment of all its deposi- 
 tors; and such tax shall be abated from such national 
 banks as are found by the Comptroller of the Currency 
 to be insolvent; and the Commissioner of Internal Rev- 
 enue, when the facts shall so appear to him, is authorized 
 to remit so much of said tax against insolvent State and 
 savings banks as shall be found to aflEect the claims of 
 their depositors. 
 
 Digitized by Microsoft® 
 
Chapter Twenty-seven, 
 
 EXEMPTION OF LIBERTY AND OTHER BONDS FROM 
 
 TAXATION. 
 
 Sec. 
 
 1. Act of April 24, 1917. First Lib- 
 erty loan bonds. 
 7. Act of September 24, 1917. Second 
 Liberty loan bonds. 
 11. (Same.) Certificates of indebted- 
 ness. 
 3. Act of April 4, 1918. Extension 
 of exemption to third Liberty 
 loan bonds. 
 16. Act of April 5, 1918. War Finance 
 Corporation bonds; intere.st on 
 bonds ; exemption of corporation. 
 
 Sec. 
 
 3. Act of July 9, 1918. Bonds payable 
 
 in foreign money. 
 1. Act of September 24, 1918. Inter- 
 est on Liberty loan bonds. 
 
 1. Act of March 3, 1919. Exemption 
 
 of second Liberty loan bonds. 
 
 2. (Same.) Exemption of interest. 
 
 4. ( Same. ) Exemptions as to non- 
 
 residents and foreign corpora- 
 tions. 
 
 Section- 1. {Act of Aprtl 24, 1917 {Ifi Stat., 35). \ ^,f^!^^^\ll 
 
 * * * bonds. 
 
 The bonds herein authorized shall be in such form 
 and subject to such terms and conditions of issue, con- 
 version, redemption, maturities, payment, and rate and 
 time of payment of interest, not exceeding three and 
 one-half per centum per annum, as the Secretary of the 
 Treasury may prescribe. The principal and interest 
 thereof shall be payable in United States gold coin of 
 the present standard of value and shall be exempt, both 
 as to principal and interest, from all taxation, except 
 estate or inheritance taxes, imposed by authority of the 
 United States, or its possessions, or by any State or local 
 taxing authority ; but such bonds shall not bear the cir- 
 culation privilege. 
 
 Opinion of the Attorney General on the question of ex- 
 emption from income tax of corporation dividends paid in 
 the form of Liberty loan bonds. (T. D. 2512.) 
 
 Corporation dividends paid in the form of Liberty bonds 
 not taxable ; but a corporation owning these bonds not ex- 
 empt from excise, franchise, and other corporation taxes. 
 (T. D. 2512.) 
 
 Promissory notes issued on or after April (5, 1918, secured 
 by United States bonds and obligations issued after April 
 24, 1917, are exempt from internal revenue stamp tax. 
 (T. D. 2701.) 
 
 Sec. 7. [Act of SeptemUr U, 1917 {Ifi Stat., 288) .] ^^ Exemption^^o* 
 That none of the bonds authorized by section one, nor of ioan"bond^' "'^ 
 the certificates authorized by section five, or by section 
 six, of this Act, shall bear the circulation privilege. All 
 such bonds and certificates shall be exempt, both as to 
 principal and interest from all taxation now or here- 
 
 Digitized by Microsoft® 
 
 581 
 
582 EXEMPTION OF LIBERTY AND OTHER BONDS FROM TAXATIOK. 
 
 after imposed by the United States, any State, or any ' 
 of the possessions of the United States, or by any local 
 taxing authority, except (a) estate or inheritance taxes, 
 and (b) graduated additional income taxes, commonly 
 known as surtaxes, and excess profits and war-profits 
 taxes, now or hereafter imposed by the United States, 
 upon the income or profits of individuals, partnerships, 
 associations, or corporations. The interest on an amount 
 of such bonds and certificates the principal of which 
 does not exceed in the aggregate $5,000, owned by any 
 individual, partnership, association, or corporation, shall 
 be exempt from the taxes provided for in subdivision (b) 
 of this section. 
 
 Sec. 11. * * * That section two of an Act of Con-1 
 gress approved February fourth, nineteen hundred and 
 ten, entitled " An Act prescribing certain provisions and 
 conditions under which bonds and certificates of in- 
 debtedness of the United States may be issued, and for 
 other purposes," is hereby amended to read as follows: 
 certaf"^*'certifl- " Sec. 2. That any certificates of indebtedness here- 
 ednle"' '"'*''^'- after issued shall be exempt from all taxes or duties of 
 the United States (but, in the case of certificates issued 
 after September first, nineteen hundred and seventeen, 
 only if and to the extent provided in connection with 
 the issue thereof), as well as from taxation in any form 
 by or under State, municipal, or local authority; and 
 that a sum not exceeding one-tenth of one per centum 
 of the amount of any certificates of indebtedness issued 
 is hereby appropriated, out of any money in the Treas- 
 ury not otherwise appropriated, to pay the expenses of 
 preparing, advertising, and issuing the same." 
 
 Interest paid within the year on indebtedness Incurred 
 for purchase of Liberty 4 per cent bonds Is deductible in 
 computing net income subject to Income surtaxes and ex- 
 cess profits taxes. (T. D. 2541.) 
 
 Liberty 4 per cent bonds of second series issued in ex- 
 change for Liberty 3J per cent bonds are " obligations of 
 the United States issued after September 1, 1917," and are 
 not subject to tax ; current earnings invested in Liberty 3§ 
 per cent bonds are not subject to tax upon distributed net 
 income of corporations if retained for employment in the 
 business. (T. D. 2570.) ^ 
 
 Interest on obligations of the United States or its pos- 
 sessions not to be included as income (but, in the case of 
 obligations issued after September 1, 1917, only if and to 
 the extent provided in the act authorizing issue thereof). 
 (T. D. 2690.) 
 
 Income from not to exceed $5,000 face value of Liberty 
 bonds, Treasury certificates of indebtedness, and war-sav- 
 ings certificates authorized by the act of September 24, 
 1917, is exempt from all income and war excess profits 
 taxes. (T. D. 2585.) 
 ***** 
 
 t h'^^iT Uberty ^^O- ^ [^^'^ "/ ^.J'^*'^ ^^ ^^^^ U^^ ^t<^f-> ^^^» ^^^ ) ] That 
 
 loan bonds. scction four of Said Act approved September twenty- 
 Digitized by Microsoft® 
 
EXEMPTION OF LIBERTY AND OTHEE BONDS FEOM TAXATION. 583 
 
 fourth, nineteen hundred and seventeen, is hereby 
 amended by adding two new paragraphs as follows: 
 
 " That holders of bonds bearing interest at a higher 
 rate than four per centum per annum, whether issued 
 (a) under section one, or (b) upon conversion of four 
 per centum bonds issued under section one, or (c) upon 
 conversion of three and one-half per centum bonds issued 
 under said Act approved April twenty-fourth, nineteen 
 hundred and seventeen, or (d) upon conversion of four 
 per centum bonds issued upon conversion of such three 
 and one-half per centum bonds, shall not be entitled to 
 any privilege of conversion under or pursuant to this 
 section or otherwise. The provisions of section seven 
 shall extend to all such bonds. * * *." 
 
 Sec. 16. [Act of AprU 5, 1918 {Jfi Stat., 506).] That bon^^^s^eS by 
 any and all bonds issued by the Corporation shall be ScTrporatiSn " "^ ° 
 exempt, both as to principal and interest, from all tax- 
 ation now or hereafter imposed by the United States, 
 any State, or any of the possessions of the United States, 
 or by any local taxing authority, except (a) estate or 
 inheritance taxes, and (b) graduated additional income 
 taxes, commonly known as surtaxes, and excess-profits 
 and war-profits taxes, now or hereafter imposed by the 
 United States, upon the income or profits of individuals, 
 partnerships, corporations, or associations. The interest interesTSn bond"! 
 on an amount of such bonds the principal of which does 
 not exceed in the aggregate $5,000 owned by any indi- 
 vidual, partnership, corporation, or association, shall be 
 exempt from the taxes referred to in clause (b). The 
 Corporation, including its franchise and the capital and cofp^o™tioa" °' 
 reserve or surplus thereof, and the income derived there- 
 from, shall be exempt from all taxation now or hereafter 
 imposed by the United States, any State, or any of the 
 possessions of the United States, or by any local taxing 
 authority, except that any real property of the Corpora- 
 tion shall be subject to State, county, or municipal taxes 
 to the same extent, according to its value, as other real 
 property is taxed. 
 
 Sec. 3. lAct of July 9, 1918 (40 Stat^ 8U).\ That ^^ Exemption^ ^i 
 notwithstanding the provisions of the Second Liberty bonds^ "and wa? 
 Bond Act, as amended by the Third Liberty Bond Act, f/oT'tonS''''"'*' 
 or of the War Finance Corporation Act, bonds and cer- 
 tificates of indebtedness of the United States payable in 
 any foreign money or foreign moneys, and bonds of the 
 War Finance Corporation payable in any foreign money 
 or foreign moneys exclusively or in the alternative, shall, 
 if and to the extent expressed in such bonds at the time 
 of their issue, with the approval of the 'Secretary of the 
 Treasury, while beneficially owned by a nonresident 
 alien individual, or by a foreign corporation, partner- 
 ship, or association, not engaged in business in the 
 
 Digitized by Microsoft® 
 
584 EXEMPTION OF LIBERTY AND OTHER BONDS FROM TAXATION- 
 
 United States, be exempt both as to principal and in- 
 terest from any and all taxation now or hereafter im- 
 posed by the United States, any State, or any of the 
 possessions of the United States, or by any local taxing 
 authority. 
 Exemption of Section 1. {Act of Septemhev 2Ji., 1918 {Jfi Stat, 965) .] 
 irt"?o*an"bond^' ' * * ^hat Until the expiration of two years after 
 ■ the date of the termination of the war between the United 
 States and the Imperial German Government, as fixed by 
 proclamation of the President — 
 
 (1) That interest on an amount of bonds of the fourth 
 Liberty loan the principal of which does not exceed $30,- 
 000, owned by any individual, partnership, association, 
 or corporation, shall be exempt from graduated addi- 
 tional income taxes, commonly known as surtaxes, and ex- 
 cess and war profits taxes, now or hereafter imposed by 
 the United States, upon the income or profits of indi- 
 viduals, partnerships, associations, or corporations; 
 
 (2) The interest received after January 1, 1918, on an 
 amount of bonds of the first Liberty loan converted, 
 dated either November 15, 1917, or May 9, 1918, the 
 second Liberty loan, converted and unconverted, and the 
 third Liberty loan, the principal of which does not ex- 
 ceed $45,000 in the aggregate, owned by any individual, 
 partnership, association, or corporation, shall be exempt 
 from such taxes: Provided, however, That no owner of 
 such bonds shall be entitled to such exemption in respect 
 to the interest on an aggregate principal amotmt of such 
 bonds exceeding one and one-half times the principal 
 amount of bonds of the fourth Liberty loan originally 
 subscribed for by such owner and still owned by him at 
 the date of his tax return; and 
 
 (3) The interest on an amount of bonds, the principal 
 of which does not exceed $30,000, owned by any indi- 
 vidual, partnership, association, or corporation, issued 
 upon conversion of 3J per centum bonds of the first Lib- 
 erty loan in the exercise of any privilege arising as -a 
 consequence of the issue of bonds of the fourth Liberty 
 loan, shall be exempt from such taxes. 
 
 The exemption proA'ided in this section shall be in ad- 
 dition to the exemption provided in section 7 of the 
 second Liberty bond act in respect to the interest on an 
 amount of bonds and certificates, authorized by such act 
 and amendments thereto, the principal of which does not 
 exceed in the aggregate $5,000, and in addition to all other 
 exemptions provided in the second Liberty bond act. 
 
 Regulations with reference to exemption of interest on 
 Liberty bonds held or subscribed for by trustees, parter- 
 ships and corporations under supplement to second Liberty 
 bond act. (T. D. 2762.) 
 
 Section 1. [Act of March 3, 1919 {]fi Stat., 1309).] 
 That the Second Libeitv Bond Act is hereby amended by 
 adding thgjjeto^g(5>jv ^j^jt/ggj^ead as follows : 
 
EXEMPTION OF LIBERTY AND OTHER BONDS FROM TAXATION. 585 
 
 Sec. 18. (a) * * * 
 
 (b) The notes herein authorized may be issued in any s e'^c™"d*Li'bertv 
 one or more of the following series as the Secretary of loan bonds.' " 
 the Treasury may prescribe in connection with the issue 
 thereof : 
 
 (1) Exempt, both as to principal and interest, from 
 all taxation (except estate or inheritance taxes) now or 
 hereafter imposed by the United States, any State, or any 
 of the possessions of the United States, or by any local 
 taxing authority; 
 
 (2) Exempt, both as to principal and interest, from 
 all taxation now or hereafter imposed by the United 
 States, any State, or any of the possessions of the United 
 States, or by any local taxing authority, except (a) estate 
 or inheritance taxes, and (b) graduated additional in- 
 come taxes, conunonly known as surtaxes, and excess- 
 profits and war-profits taxes, now or hereafter imposed 
 by the United States, upon the income or profits of indi- 
 viduals, partnerships, associations, or corporations; 
 
 (3) Exempt, both as to principal and interest, as pro- 
 vicled in paragraph (2) ; and with an additional exemp- 
 tion from the taxes referred to in clause (b) of such 
 paragraph, of the interest on an amount of such notes 
 the principal of which does not exceed $30,000, owned 
 by any individual, partnership, association, or corpora- 
 tion; or 
 
 (4) Exempt, both as to principal and interest, from 
 all taxation now or hereafter imposed by the United 
 States, any State, or any of the possessions of the United 
 States, or by any local taxing authority, except (a) estate 
 or inheritance taxes, and (b) all income, excess-profits, 
 and war-profits taxes, now or hereafter imposed by the 
 United States, upon the income or profits of individuals, 
 partnerships, associations, or corporations. 
 
 ^ H< ^ ^ ^ 
 
 Sec. 2. (a) That until the expiration of five years i„t^J^'?P''°° "' 
 after the date of the termination of the war between the 
 United States and the German Government, as fixed by 
 proclamation of the President, in addition to the ex- 
 emptions provided in section 7 of the Second Liberty 
 Bond Act in respect to the interest on an amount of 
 bonds and certificates, authorized by such Act and 
 amendments thereto, the principal of which does not ex- 
 ceed in the aggi'egate $5,000, and in addition to all other 
 exemptions provided in the Second Liberty Bond Act 
 or the Supplement to Second Liberty Bond Act, the in- 
 terest received on and after January 1, 1919, on an 
 amount of bonds of the First Liberty Loan Converted, 
 dated November 15, 1917, May 9, 1918, or October 24, 
 1918, the Second Liberty Loan converted and uncon- 
 verted, the Third Liberty Loan, and the Fourth Liberty 
 Loan, the principal of which does not exceed $30,000 in 
 
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586 EXEMPTION OF LIBEETY AND OTHER BOKDS FROM TAXATION. 
 
 the .aggregate, owned hy any individual, partnership, 
 association, or corporation, shall be exempt from gradu- 
 ated additional income taxes, commonly known as sur- 
 taxes, and excess-profits and war-profits taxes, now or 
 hereafter imposed by the United States, upon the income 
 or profits of individuals, partnerships, associations, or 
 corporations. 
 
 (b) In addition to the exemption provided in subdi- 
 vision (a), and in addition to the other exemptions 
 therein referred to, the interest received on and after 
 January 1, 1919, on an amount of the bonds therein speci- 
 fied the principal of which does not exceed $20,000 in 
 the aggregate, owned by any individual, partnership, as- 
 sociation, or corporation, shall be exempt from the taxes 
 therein specified : Provided, That no owner of such bonds 
 shall be entitled to such exemption in respect to the in- 
 terest on an aggregate principal amount of such bonds 
 exceeding three times the principal amount of notes of 
 the Victory Liberty Loan originally subscribed for by 
 such owner and still owned by him at the date of his 
 tax return. 
 
 Sec. 3. * * * 
 
 Sec. 4. That section 3 of the Fourth Liberty Bond Act 
 is hereby amended to read as follows : 
 Exemptions as " Sec. 3. That, notwithstanding the provisions of the 
 ind fo°rei?n'^cor' Second Liberty Bond Act or of the War Finance Cor- 
 porations, poration Act or of any other Act, bonds, notes, and certi- 
 ficates of indebtedness of the United States and bonds of 
 the War Finance Corporation shall, while beneficially 
 owned by a nonresident alien individual, or a foreign 
 corporation, partnership, or association, not engaged in 
 business in the United 'States, be exempt both as to prin- 
 cipal and interest from any and all taxation now or here- 
 after imposed by the United States, any State, or any 
 of the possessions of the United States or by any local 
 taxing authority.'" 
 
 Circular relating to tax exemptions of Liberty bonds 
 and Victory notes. (T. D. 2836.) 
 
 For purposes of additional tax exemption for Liberty 
 bonds and Victory notes of either series issued upon con- 
 version of Victory notes of the other series which were 
 originally subscribed for by any taxpayer will be deemed 
 to have been originally subscribed for by such taxpayer. 
 (T. D. 2857. ) 
 
 Interest on 4} per cent Victory notes converted into 3i 
 per cent Victory notes, and on 3i Victory notes converted 
 into 4i Victory notes. (T. D. 3865.) 
 
 Digitized by Microsoft® 
 
Chapter T^^^:NTT-EIGHT. 
 
 PEOVISIONS COMMON TO SEVEEAL OBJECTS OF 
 
 TAXATION. 
 
 Sec 
 
 2982 
 
 3433 
 
 ly. 
 
 IV. 
 
 3465. 
 
 Sec. 
 
 3441. Repealed. 
 
 3-J42. Obsolete. 
 
 3443. Fraudulent claims for drawback ; 
 
 penalty. 
 
 3444. Collector's monthly account of 
 
 articles in bonded warehouses 
 and articles exported. 
 
 3445. Stamps, instruments for attach- 
 
 ing, canceling, etc. 
 3446 (amended). Power to alter or 
 change stamps, marks, labels, 
 etc. 
 1. Act of August 15, 1876. Stamps 
 to be sent to officers by mail, 
 registered. 
 
 3447. Where mode of assessing or col- 
 
 lecting tax is not provided for ; 
 regulations authorized. 
 
 3448. Internal-revenue laws, when co- 
 
 extensive with jurisdiction of 
 United States. 
 
 3449. Eemoving liquors under other 
 
 than the proper name known to 
 the trade ; penalty. 
 
 3450. Removing or concealing articles 
 
 with intent to defraud; for- 
 feiture and penalty. 
 
 3451. Fraudulently executing docu- 
 
 ments ; penalty. 
 
 3452. Having property in possession 
 
 with intent to sell in fraud of 
 law or to evade taxes ; penalty. 
 
 3453. Property found in possession in 
 
 fraud of revenue laws ; forfei- 
 ture. 
 
 3454. Sales to evade tax ; forfeiture. 
 
 3455. Disposing of or receiving or mak- 
 
 ing empty stamped packages; 
 penalties. 
 
 3456. Penalty and forfeiture by dis- 
 
 tillers, etc., for omitting things 
 required and for doing things 
 forbidden. 
 
 3457. Packages included in forfeiture 
 
 of goods. 
 
 3458. Goods seized may be delivered to 
 
 marshal before process issues, 
 etc. 
 S459. Bonding of goods seized. 
 
 3460. Proceedings on seizure of goods 
 
 valued at $500 or less. 
 
 3461. Application for remission. 
 
 3462. Search warrants. 
 1-23. Act June 15, 1917— Title XI. 
 
 Same. 
 
 3463. Informers' rewards. 
 1. Act of July 1, 1918. Appropria- 
 tion for detecting frauds. 
 
 3464. Purchasing for the Government 
 
 goods subject to tax. 
 
 Digitized by Microsoft® 
 
 (amended). Foreign war vessels. 
 
 (amended). Articles for exporta- 
 tion, manufactured in bonded 
 warehouses. 
 
 Par. M, act of October 3, 1913. 
 Manufacturer of articles in 
 tended for exportation it 
 bonded warehouses. 
 20. Act of March 1, 1879, as amended 
 by act of Blay 28, 1880. With- 
 drawal of spirits by manufac- 
 turer of cordials, etc. 
 15. Act of May 28, 1880. Allowance 
 for leakage. 
 3434. Superseded by Par. M, Sec. IV, 
 act of October 3, 1913. 
 IV. Par. O, act of October 3, 1913. 
 Drawback equal to tax on do- 
 mestic alcohol used in medici- 
 nal and toilet preparations. 
 
 Par. P, act of October 3, 1913. 
 Articles reimported on Vhich 
 no revenue tax was paid, or, 
 if paid, was refunded. 
 
 Construction of act March 2, 
 
 1833. 
 Act of August 13, 1894, amend- 
 ed. Guarantee corporation 
 may be accepted as sole surety 
 on recognizances, stipulations, 
 bonds, and undertakings. 
 1320. Act of February 24, 1919. Liberty 
 or other United States bonds 
 in lieu of surety bonds. 
 Act of August 5, 1909. Bonds 
 fi'om surety companies; joint 
 commission. 
 5. Legislative, executive, and ju- 
 dicial appropriation act of 
 March 2, 1895. Official bonds. 
 Act of August 8, 1888. Notice of 
 deficiency in accounts of prin- 
 cipals to be given to sureties 
 upon bonds of United States 
 officials ; limitation of time 
 within which suits shall be 
 brought against sureties. 
 Legislation relative to Hawaii, 
 Porto Rico, the Philippines, 
 and the Virgin Islands. 
 Provisions of act of February 
 24, 1919, of general applica- 
 tion: 
 
 1. Definitions. 
 1305. Laws part of act; re- 
 turns on notice from 
 Commissioner ; ex- 
 amination of books, 
 etc. 
 
 587 
 
 1,2. 
 
588 PROVISIONS COMMON TO SEVEEAl, OBJECTS OF TAXATION. 
 
 Sec. 
 
 Provisions of act of February 
 24, 1919, of general applica- 
 tion — Continued. 
 
 1306. Floor taxes ; returns ; 
 
 time for payment ; 
 extension of time. 
 
 1307. Mode of- collecting 
 
 taxes ; stamp taxes. 
 
 1308. Failure to pay, col- 
 
 lect account for and 
 pay over tax or to 
 to make return or 
 supply information. 
 
 1309. Rules and regula- 
 
 tions ; attestation 
 to certain returns. 
 
 1310. Credit of overpay- 
 
 ments or overcoUec- 
 tions ; payment of 
 taxes on sales on 
 credit ; taxes on 
 article sold or leased 
 for export. 
 
 1311. Use of existing 
 
 stamps. 
 
 Sec. 
 
 Provisions of act of February 
 24, 1919, of general applica- 
 tion — Continued. 
 
 1312. Payment of taxes by 
 
 vendee or lessee in 
 certain cases. 
 
 1313. Fractional part of 
 
 cent disregarded. 
 
 1314. Certificates of indebt- 
 
 edness, etc., receiv- 
 able in payment of 
 certain taxes. 
 
 1318. Jurisdiction of dis- 
 
 trict courts ; issue 
 of writs. 
 
 1319. False statements as 
 
 to tax in connection 
 with sales or leases. 
 
 1400. Repeal of acts. 
 
 1402. EfCect of partial in- 
 
 < validity of act. 
 
 1405. Citation of act. 
 
 1408. Copies of contracts 
 
 with United States. 
 
 1409. Effective date of act. 
 
 Sec. 3441. Eelative to drawback on fermented liquors ; 
 repealed by act of June 18, 1890 (26 Stat., 162). See 
 page 317. 
 
 Sec. 3442. Obsolete by repeal of section 3441. 
 ciafm's''fo?"draw- S^c. 3443. Whenever any person fraudulently claims 
 back; penalty, or seeks to obtain an allowance of drawback on goods, 
 wares, or merchandise on which no internal duty shall 
 have been paid, or fraudulently claims any greater allow- 
 ance of drawback than the tax actually paid as aforesaid, 
 he shall forfeit triple the amount wrongfully or fraudu- 
 lently claimed or sought to be obtained, or the sum of 
 five hundred dollars, at the election of the Secretary of 
 the Treasury. 
 
 Section 3330, page 281, provides a penalty in the case of 
 fraudulent claims for drawback on spirits, and section 25, 
 act of February 8, 1875 (p. 391), in the case of fraudulent 
 claims for drawback on tobacco. 
 
 Drawback is now allowed on distilled spirits, page 279; 
 tobacco, snuff, cigars, cigarettes, page 393 ; and stills, page 
 164. 
 
 No drawback is allowed upon spirits bottled in bond, 
 page 294. 
 
 Drawback allowed on articles shipped to the Philippines 
 or Porto Rico, page 625. 
 
 monthly ^account Sec. 3444. Every collector who has charge of any ware- 
 Df articies^^^m hoiisc in whicli ctistiUecl spirits, or other articles, are 
 houses and aiti- stored in boiid, shall render a monthly account of all such 
 cies exported. articles to the Commissioner of Internal Eevenue, by 
 whom such account shall be examined and adjusted 
 monthly, so as to exhibit a true statement of the respon- 
 sibility of such collector thereon. In adjusting such ac- 
 
 ' with all the articles 
 
 count, the collector shall be charged 
 Digitized by Microsoft® '^ 
 
PROVISIONS COMMON TO SEVERAL, OBJECTS OF TAXATION. 589 
 
 which may have been deposited or received under the 
 provisions of law, in any warehouse in his district and 
 under his control, and shall be credited with all such 
 articles shown to have been removed therefrom accord- 
 ing to law, including transfers to other collectors and to 
 his successor in office, and also whatever allowances may 
 have been made in accordance with law to any owner 
 of such goods or articles for leakage or other losses. 
 
 And every collector from whose district any distilled 
 spirits, tobacco, snuff, or cigars are shipped in bond, 
 under the provisions of this Title, shall render a monthly 
 account of the same to the Commissioner of Internal 
 Revenue, showing the amount of each article produced 
 and shipped in bond, the amounts of which the exporta- 
 tion is completed according to law, and the amount re- 
 maining unaccounted for at the end of each month ; also 
 any excesses or deficiencies on the amounts originally re- 
 ported as shipped. 
 
 Sec. 3445. The Commissioner of Internal Eevenuemay changes of 
 
 1 Ti ■, T -1 T • "^ Stamps, instni- 
 
 make such change m stamps, and may prescribe such m- ments tor attach- 
 struments or other means for attaching, protecting, and a^^' cancen^g"^' 
 canceling stamps, for tobacco, snuff, cigars, distilled 
 spirits, and fermented liquors, or either of them, as he 
 and the Secretary of the Treasury shall approve; such 
 instruments to be furnished by the United States to the 
 person using the stamps to be affixed therewith, under 
 such regulations as the Commissioner of Internal Reve- 
 nue may prescribe. 
 
 Reffulations under this section have the force of law. (15 
 Op. Atty. Gen., 191.) 
 
 Rubber stamps may be used instead of stencils for can- 
 celing strip stamps on cigar boxe-s. (Circular letter, Octo- 
 ber 15, 189T; 43 Int. Rev. Rec, 385.) 
 
 Sec. 3446. [Amended hy see. 18, act of March 1, 1879 ^^^^^^'^ ^-^^^ 'J; 
 {20 Stat., 327) .] The Commissioner of Internal Eeve- change' inter'nal- 
 nue, with the approval of the Secretary of the Treasury, martoror^aMB', 
 may establish and, from time to time, alter or change the ^*'=' 
 form, style, character, material, and device of any stamp, 
 mark, or label used under any provision of the laws relat- 
 ing to internal revenue. Such stamps shall be attached, 
 protected, removed, canceled, obliterated, and destroyed, 
 in such manner and by such instruments or other means 
 as he, with the approval of the Secretary of the Treasury, 
 may prescribe ; and he is hereby authorized and empow- 
 ered to make, with the approval of the Secretary of the 
 Treasury, all needful regulations relating thereto; and 
 all pains, penalties, fines, and forfeitures now provided by Penalties. 
 law relating to internal-revenue stamps shall apply to 
 and have full force and effect in relation to any and all 
 stamps which may or shall be so established by the Com- 
 missioner of Internal Revenue : 
 
 Provided, Such stamps or device or instrument or Expense. 
 means of removal or obliteration, shall entail no addi- 
 Digitized by Microsoft® 
 
590 PROVISIONS COMMON TO SEVERAL OBJECTS OF TAXATION. 
 
 tional expense upon the persons required to affix or use 
 the same. 
 
 See section 321, page 51, as to authority of Commissioner 
 to provide stamps, etc. 
 
 Stamps for special taxes, section 3238, page 156 ; for dis- 
 tilled spirits, section 3312, page 268; for imitation wines, 
 page 325 ; for fermented liquors, section 3341, page 310 ; for 
 tobacco, section 3369, page 383; for cigars, section 3395, 
 page 406; for oleomargarine, section 8, act of August 2, 
 1886, amended, page 433. See appropriate sections for other 
 articles. 
 
 The portraits of living persons upon Internal-revenue 
 stamps not prohibited by section 3576, R. S., but their ex- 
 clusion therefrom is in consonance with its spirit. (14 Op. 
 Atty. Gen., 528.) 
 
 Hamilton-Brooks cigar stamp. (16 Op. Atty. Gen., 444; 
 26 Int. Rev. Rec, 33; 17 Op. Atty. Gen., 111.) 
 
 Use of the Hunter stamp. (15 Op. Atty. Gen., 191.) 
 
 Fletcher's invention. (11 Ct. Cls., 748.) 
 
 Alleged infringement of patent. (Fletcher v. Blake, 131 
 U. S., cxcvii appendix; 27 Int. Rev. Rec, 6; HoUister v. 
 Benedict & Burnham Manufacturing Co., 113 U. S., 59; 31 
 Int. Rev. Rec, 30; Solomons v. United States, 22 Ct. 
 CIS., 335.) 
 
 Stamps for spirits, beer, tobacco, snufC, and cigars are 
 not legitimate articles of traffic. (11 Int. Rev. Rec, 57; 
 Amer. Brewing Co. r. United States, 33 Ct. Cls., 351.) 
 
 Public policy forbids the sale of official stamps uncanceled 
 which have become obsolete. (28 Op. Atty. Gen., 201.) 
 
 seo't'tr/fflc'e^s b'; Sec. 1. [Act August 15, 1876 {19 Stat., 152).] * * * 
 mau, registered. And hereafter the transmission of internal revenue 
 stamps to the officers of the internal revenue service shall 
 be made through the mails of the United States in reg- 
 istered packages. * * * 
 
 Internal-revenue stamps may be mailed to collectors and 
 stamp deputy collectors or returned by them to the Com- 
 missioner In full packages without regard to the 4-pound 
 limit of weight. (T. D. 18947.) 
 
 Delivery of stamps to be made directly to taxpayer. 
 (T. D. 2504.) 
 
 ass^f" "?'^co°- Sec. 3447. TMienever the mode or time of assessing or 
 iccting any tax is Collecting any tax which is imposed is not provided for, 
 regu?Itrom.'' '""^ ' the Commissioner of Internal Revenue may establish the 
 same by regulation. He may also make all such regula- 
 tions, not otherwise provided for, as may have become 
 necessary by reason of any alteration of law in relation 
 to internal revenue. 
 
 Spreckels Sugar Refining Co. r. llcClain. (113 Fed., 244; 
 T. D. 462; 109 Fed., 76; T. D. 350; Herold v. Kahn, 159 
 Fed., 608.) 
 
 Internal - reve- Sec. 3448. The Internal-rovenue laws imposing taxes on 
 
 coextemive w^ith distiUcd Spirits, fermented liquors, tobacco, snuff, and 
 
 uJited^^tetes "' ^igars shall be held to extend to such articles produced 
 
 anywhere within the exterior boundaries of the United 
 
 States, whether the same be within a collection district or 
 
 not. 
 
 Indian Territory : The Cherokee Tobacco (Boudinot's 
 factory). (11 VFall., 616; 14 Int. Rev. Rec, 11.) 
 
 TerriW(^'Wlt*^i«ttilGM"ilfH!lie^general terms of this section, 
 
PROVISION'S COMMON TO SEVERAL OBJECTS OF TAXATION. 591 
 
 notwithstanding any prior treaty, and that the provisions 
 of the internal-revenue law as to distilled spirits, fermentefl 
 liquors, and tobacco were applicable therein. 
 
 Liquor dealers in Indian Territory. (22 Int. Rev. Bee, 
 109; 23 Id., 125; United States v. Forty-three Gallons of 
 Whiskey, 108 U. S., 491; 29 Int. Rev. Rec, 188.) 
 
 Special-tax stamps, being only receipts for taxes paid, 
 may be issued by the collector of internal revenue, notwith- 
 standing acts of Congress relative to sale of liquors in the 
 Indian Territory. (T. D. 18911.) 
 
 Section 2141, Revised Statutes, provides as follows: 
 " Every person who shall, within the Indian country, set 
 up or continue any distillery for manufacturing ardent 
 spirits shall be liable to a penalty of one thousand dollars ; 
 and the superintendent of Indian affairs, Indian agent, or 
 subagent, within the limit of whose agency any distillery 
 of ardent spirits is set up or continued, shall forthwith 
 destroy and break up the same." 
 
 The Attorney General, in an opinion rendered October 
 4, 1898, held that the establishment of a distillery in the 
 Indian Territory, notwithstanding it was on land to which 
 the Indian title was extinct, would be in contravention of 
 law. (T. D. 20162; 22 Op. Atty. Gen., 232.) 
 
 Oklahoma and Indian Territory to form a State govern- 
 ment. Act June 16, 1906. (34 Stat., 267.) Oklahoma ad- 
 mitted as a State November 16, 1907. (85 Stat., 2161.) 
 
 Introduction of liquor into the Indian country from 
 points outside the State of Oklahoma forbidden. (United 
 States V. Wright, 229 U. S., 226; T. D. 1856.) 
 
 Alaska added to Oregon district December 27, 1872. 
 
 Alaska, case of SavalofC (17 Int. Rev. Rec, 20) ; case of 
 Stephens (28 Id., 194). 
 
 Alaska act to prohibit manufacture and sale of intoxi- 
 cating liquors, act February 14, 1917. (T. D. 2466.) 
 
 An act to define and punish crimes in the District of 
 Alaska and. to provide a code of criminal procedure for 
 said district. (Act of March 3, 1899, 30 Stat., 1253.) 
 
 Section 477 provides : " That nothing In this act shall in 
 any way repeal, conflict, or interfere with the public gen- 
 eral laws of the United States imposing taxes on the 
 manufacture and sale of intoxicating liquors for the 
 purpose of revenue and known as the ' internal-revenue 
 laws.' " 
 
 The act of June 6, 1900 (31 Stat., 321), makes further 
 provision for civil government in Alaska. 
 
 Philippine Islands (24 Op. Atty. Gen., 120). 
 
 Internal-revenue laws not extended to Canal Zone. 
 (T. D. 1116.) 
 
 The Canal Zone Is not one of the possessions of the 
 United States within the meaning of the tarifE act of 
 1909. (27 Op. Atty. Gen., 595.) 
 
 Canal Zone is a territory under the jurisdiction of the 
 United States. (30- Op. Atty. Gen., 271.) 
 
 The Constitution of the United States has not been ex- 
 tended to Guam. (25 Op. Atty. Gen., 61.) 
 
 Section 24 of Criminal Code distinguished. (T. D. 2437.) 
 
 Manufacture and sale of alcoholic liquors in Alaska pro- 
 hibited. (T. D. 2466.) 
 
 Sec. 3449. Whenever any person ships, transports, or 1;,^™°^^^"^^?"^' 
 removes any spirituous or fermented liquors or wines, ""der other than- 
 under any other than the proper name or brand known to penalty! "^^" ' 
 the trade as designating the kind and quality of the con- 
 tents of the casks or packages containing the same, or 
 causes suclx act to be done, he shall forfeit said liquors or 
 
 Digitized by Microsoft® 
 
692 PROVISIONS COMMON TO SEVERAL, OBJECTS OF TAXATION. 
 
 wines, and casks or packages, and be subject to pay a fine 
 of five hundred dollars. 
 
 Construction of this section in case of shipment of spirits 
 under a false designation. (Attorney General Taft's letter 
 to Secretary of the Treasury; 22 Int. Rev. Rec, 261.) 
 
 Section 3449 was passed to prevent frauds on the revenue . 
 and to assist revenue officers in discovering such frauds. 
 It has no reference to marks or brands placed upon 
 packages by Government officers. (Woolner & Co. v. 
 Rennick, 170 Fed., 662; T. D. 1425.) 
 
 W^hen spirituous liquors contained in bottles are packed 
 in barrels and shipped and the barrels are marked 
 " groceries," such shipment is a violation of this section. 
 (United States r. Liquor Dealers' Supply Co., 156 Fed., 219; 
 T. D. 1292.) 
 
 When spirituous liquors contained in bottles are packed 
 in barrels and shipped, and the barrels are not marked, 
 hut described in bill of lading as " drugs," such shipment 
 is a violation of section 3449. The matter of Intent is 
 immaterial. (Charge to the jury in United States v. 
 Robert Stevenson & Co. ; T. D. 1644. ) 
 
 The requirements of this statute can not be limited to 
 distillers, manufacturers, and rectifiers, as its language 
 covers all persons who ship, transport, or remove liquors 
 or wines. (United States v. Camp et al., Northern District 
 of California, 89 Fed., 697.) See 133 Fed. 910 (T. D. 844) 
 for later decision of Cir. Ct. of appeals. 
 
 Section 3449 not unconstitutional because in some cases 
 It incidentally acts as a protection to trade-marks. (United 
 States r. Loeb, 49 Fed., 636 ; 38 Int. Rev. Rec, 78. ) 
 
 The term " package," as tised in section 3449, inrludes 
 every box, barrel, or other receptacle into which distilled 
 spirits have been placed for shipment or removal, either 
 in quantity or in separate small packages, as bottles or 
 .iugs. (United States v. 132 Packages of Spirituous 
 Liquors and Wines, circuit court of appeals, 76 Fed., 364; 
 42 Int. Rev. Rec, 438.) 
 
 Packages of less than 5 gallons marked " Glass, this side 
 up with care." Section 3449 does not apply. (United 
 States V. Twenty Boxes of Corn Liquor, 123 Fed., 13.5 ; 133 
 Id., 910; T. D. 844.) 
 
 "J. D. Uer's Rochester Tonic." (United States v. J. D. 
 Her Brewing Co., 121 Fed., 41; T. D. 630.) 
 
 Shipping liquors under other than name as known to the 
 trade. (T. D. 956; T. D. 1035; T. D. 1846.) 
 
 United States v. Sandefuhr (145 Fed. 49). 
 
 See provisions of the criminal code as to marking spirits. 
 Api)endix, page 681. 
 
 Instructions to officers. (T. D. 2437.) 
 
 Shipment of malt extract. (T. D. 1444.) 
 
 Shipment of beverages, classed as fermented malt liquors, 
 under proprietary names, a violation of section 8449, R. S. 
 (T. D. 1846.) 
 
 coiSTng ^ artT ^^*^* '^^50- Wlienever any goods or commodities for or 
 cies with intent in rcspcct wliercof any tax is or shall be imposed, or any 
 United stat*s"o1 materials, utensils, or vessels proper or intended to be 
 ^^- made use of for or in the making of such goods or com- 
 
 modities are removed, or are deposited or concealed in 
 any place, with intent to defraud the United States of 
 such tax, or any part thereof, all such goods and commod- 
 ities, and all such materials, utensils, and vessels, re- 
 spectively, shall be forfeited ; and in every such case all 
 the ca.sks,Df§MSBi^lsyi^s^roisoiSl^er packages whatsoever, 
 containing, or which shall have contained, such goods or 
 
PEOVISIONS COMMON TO SEVERAL, OBJECTS OF TAXATION. 593 
 
 commodities, respectively, and every vessel, boat, cart, 
 carriage, or other conveyance whatsoever, and all horses 
 or other animals, and all things used in the removal or 
 for the deposit or concealment' thereof, respectively, shall 
 be forfeited. 
 
 And every person who removes, deposits, or conceals, toritnuie. 
 or is concerned in removing, depositing, or concealing 
 any goods or commodities for or in respect whereof any 
 tax is or shall be imposed, with intent to defraiid the 
 United States of such tax or any part thereof, shall be 
 liable to a fine or penalty of not more than five hundred 
 dollars. And all boilers, stills, or other vessels, tools and 
 implements, used in distilling or rectifying, and for- 
 feited under any of the provisions of this Title, and all 
 condemned material^ together with any engine or other 
 machinery connected th'erewi'th, and all empty barrels, 
 and all grain or other material suitable for* distillation, 
 shall, under the direction of the court in which the for- 
 feiture is recovered, be sold at public auction, and the 
 proceeds thereof, after deducting the expenses of sale, 
 shall be disposed of according to law. 
 
 And all spirits or spirituous liquors which may be for- ed;''how^ disposed 
 feited under the provisions of this Title, unless herein "'• 
 otherwise provided, shall be disposed of by the Commis- 
 sioner of Internal Revenue as the Secretary of the Treas- 
 ury may direct. 
 
 An unofficial person may seize property as forfeited to 
 tlie United States, and the Government, if It chooses, may 
 adopt tlie seizure and make it the basis of legal proceedings. 
 
 A proceeding by the Government to enforce the forfeiture 
 
 by legal process is a confirmation of the seizure. (13 Op. 
 
 Attv. Gen., 253, 256; The Caledonian, 4 Wheat., 99, 102; 
 
 . - 1 Gelston v. ' Hoyt, 16 Wheat., 245, 310 ; Taylor v. United 
 
 States, 3 How., 197, 204.) 
 
 Circular No. 224, relative to destruction of spirits. (26 
 Int. Rev. Rec, 105.) 
 
 Rights of mortgagee. (United States v. Two Barrels 
 Whisky, 96 Fed. 479 ; United States r. One Bay Horse, 128, 
 Id., 207.) 
 
 In statutory offenses a guilty intent is not necessarily an 
 Ingredient. (United States v. One Black Horse, 129 Fed., 
 167.) 
 
 The illegal acts of agents or employees work forfeiture of 
 propertv. (Bush v. United States, 24 Fed., 917; 31 Int. 
 Rev. Rec, 305 ; United States v. Stovvell, 133 U. S., 1 ; 36 
 Int. Rev. Rec, 30 ; United States v. 7 Barrels Distilled Oil, 
 6 Blatch., 174; Fed. Cas. No. 16253.) 
 
 In Pilcher v. Faircloth, 135 Ala., 311, action to recover for 
 the conversion of two mules seized and sold by the collector, 
 the Supreme Court of Alabama held that the forfeiture took 
 eifeet irnmediately upon the commission of the act, and the 
 defendant by purchase at the collector's sale acquired title. 
 
 Mules and a wagon, hired for the purpose of hauling pro- 
 duce to market, are forfeited when employed by the bailee 
 in the removal of spirits in violation of law, although the 
 owner had no information that his property would be em- 
 ployed in an unlawful purpose. (United States v. Two Bay 
 Mules, 36 Fed., 84.) 
 
 ' Guilty knowledge of owner that property was to be used 
 for unlawful Purp^J^H^el^f ?^/HJ&A^S?J^°*^ ^^^ property 
 140184°— 20 38 
 
594 PROVISIONS COMMON TO SEVERAL OBJECTS OF TAXATION. 
 
 to forfeiture. (United States v. 246i Pounds Tobacco, 103 
 Fed., 791; United States v. Patented Machines, 99 Fed., 
 559; T. D. 54.) 
 
 Automobile used by employee of owner in removing dis- 
 tilled spirits on which tax had not been paid, with intent 
 to defraud, was subject to forfeiture, though employee 
 was innocent of any wrong. (United States v. Mincey, 254 
 Fed., 287.) 
 
 Automobile used in removing liquor on which tax lias not 
 been paid, with intent to defraud Government of tax, is sub- 
 ject to forfeiture. (United States r. One Saxon Automo- 
 bile, 257 Fed., 251; T. D. 2789.) 
 
 Vehicle or animal committed by o\A'ner to possession of 
 third person, who uses it in removal of goods or commodi- 
 ties to defraud United States of tax imposed thereon, ig 
 subject to forfeiture though owner had no knowledge of 
 illegal use. (Logan v. United States, 260 Fed., 746.) 
 
 eice'^utfng''"^docu^ ^^^- 3451. Everj persoH Avho simulates or falsely or 
 ments required fraudulently executcs or signs any bond, permit, entry, 
 
 by internal-reve- ii i "^ j. ■ i i_ .r,"^ • •'^ j! j.T. • 
 
 nue laws ; pen- or Other document required by tne provisions of the in- 
 ^'y- ternal-revenue laws, or by any regulation made in pursu- 
 
 ance thereof, or who procures the same to be falsely or 
 fi'audulently executed, or who advises, aids in, or con- 
 nives at such execution thereof, shall be imprisoned for a 
 term not less than one year nor more than five years ; and 
 the property to which such false or fraudulent instrument 
 ;relates shall be forfeited. 
 
 See section 28, act March 4, 1909 (Criminal Code), page 
 679, in appendix, penalties for forging, altering, counter- 
 feiting affidavits, bonds, public records, etc. 
 
 Fraudulent Form 122 forfeits spirits to which it relates. 
 (Thacher, claimant of 102 packages of distilled spirits, v. 
 United States, 103 U. S. (13 Otto), 679, affirming 15 Blatch., 
 15; 27 Int. Rev. Rec, 144.) 
 
 ty^fn' p^osSo'i; Sec. 3452. Every person who shall have in his custody 
 witii Intent to Qf posscssion any goods, wares, merchandise, articles, or 
 
 sell in fraud of .J^ i ■ t , • ' i i i j j_i 
 
 law, or to evade oDJects on which taxGs are imposed by law, tor the pur- 
 taxes ; penalty. ^^^^ ^£ Selling the Same in fraud of the internal-revenue 
 laws, or with design to avoid payment of the taxes im- 
 posed thereon, shall be liable to a penalty of five hun- 
 dred dollars or not less than double the amount of taxes 
 fraudulently attempted to be evaded. 
 
 United States v. Grotenkemper (2 Bond, 140; 26 Fed. 
 Cas., 45.) 
 
 property" "^ found Sec. 3453. All goods, wares, merchandise, articles, or 
 in possession in obiects, ou which taxcs are imposed, which shall be found 
 
 fraud of revenue .•'," . ,, ^ .,i*,i iij! 
 
 laws ; forfeitures, m the posscssiou, or custody, or withm tile control oi any 
 person, for the purpose of being sold or removed by him 
 in fraud of the internal-revenue laws, or with design to 
 avoid payment of said taxes, may be seized by the col- 
 lector or deputy collector of the proper district, or by such 
 other collector or deputy collector as may be specially 
 authorized by the Commissioner of Internal lievenue for 
 that purpose, and shall be forfeited to the United States. 
 And all raw materials found in the possession of any 
 person intending to manufacture the same into articles 
 of a kind ^w^^dtbytMicioiBdM) purpose of fraudulently 
 
PEOVISIOlsrS COMMON TO SEVERAL OBJECTS OF TAXATION. 695 
 
 selling such manufactured articles, or with design to 
 evade the payment of said tax ; and all tools, implements, 
 instruments, and personal property whatsoever, in the 
 place or building, or within any yard or inclosure where 
 such articles or raw materials are found, may also be 
 seized by any collector or deputy collector, as aforesaid, 
 and shall be forfeited as aforesaid. The proceedings to 
 enforce such forfeitures shall be in the nature of a pro- 
 ceeding in rem in the circuit court or district court of the 
 United States for the district where such seizure is made. 
 
 Personal property in the same Inclosure with an illicit 
 still. (United States v. Quantity of Rags, 7 Int. Rev. Rec, 
 123; Fed. Cas., 16103.) 
 
 Property liable to forfeiture without any regard to the 
 misconduct of owner. (United States v. Distillery at Spring 
 Valley, 11 Blatch., 255; 25 Fed. Cas., 854; 18 Int. Rev. Rec, 
 59, and decisions cited under sec. 3281, p. 227.) 
 
 Mixture or confusion of fraud spirits with others. (The 
 Distilled Spirits (Harrington's), 11 Wall., 356; 13 Int. Rev. 
 Rec, 193 ; 10 Id., 164. United States v. One Still, 5 Blatch., 
 403; 5 Int. Rev. Rec., 189.) 
 
 An acquittal in a criminal prosecution is a bar to a pro- 
 ceeding in rem when the of£en.se is the same. (Coffee v. 
 United States, 116 U. S., 436; 32 Int. Rev. Rec, 38.) 
 
 Forfeiture not a bar to prosecution for crime committed. 
 (Wood V. United States, 204 Fed., 55; T. D. 1836.) 
 
 Effect of conviction. (United States v. 71 Barrels Whis- 
 liey. T. D. 1836.) 
 
 An action for a pecuniary penalty is not a bar to a crimi- 
 nal prosecution when the law provides for both. (United 
 States V. Trobe, 2 Int. Rev. Rec, 133; Fed. Cas., 16.541.) 
 
 The acquittal of a defendant under indictment not a bar 
 to an action on bond to recover the amount due the Gov- 
 ernment. (United States v. Jaedicke, 73 Fed., 100. See 
 also United States Fidelity and Guaranty Co. v. United 
 States, 150 Fed., 554.) 
 
 Where stock of goods upon which floor tax has not been 
 paid is depleted in such manner as will result in jeopardiz- 
 ing collection of taxes due thereon same should be seized 
 without awaiting result of distraint proceedings. (T. D. 
 2648.) 
 
 The United States is not estopped by verdict of acquittal 
 from proceeding in a civil action for the tax. (United 
 States V. Schneider, 35 Fed., 107.1 
 
 Acquittal bar to civil action for penalty. (United States 
 V. Seattle Brewing & Malting Co., 135 Fed., 597. ) 
 
 Oleomargarine. (United States v. One Bay Horse, 128 
 Fed., 207.) 
 
 Burden of proof : There is a distinction between civil and 
 criminal cases in respect to the degree or quantum of evi- 
 dence necessary to justify the jury in finding their verdict. 
 In civil eases their duty is to find for the party in whose 
 favor it preponderates. Innocence is presumed in a criminal 
 case until the contrary is proven; but the presumption of 
 Innocence as probative evidence is not applicable in civil 
 cases nor in revenue seizures. (Lilienthal's Tobacco i\ 
 United States, 97 U. S., 237; 24 Int Rev. Bee, 60.) 
 
 Proceedings for forfeiture are civil, not criminal proceed- 
 ings. (United States v. Three Tons of Coal, 21 Int. Rev. 
 Rec, 251.) 
 
 The expression "in fraud of the internal- revenue laws " 
 means in violation of the internal-revenue laws. (A Quan- 
 tity of Tobacco and Cigars, 5 Ben., 407, Fed. Cas. No. 11500. ) 
 
 Digitized by Microsoft® 
 
696 PROVISIONS COMMON TO SEVERAL OBJECTS OF TAXATION. 
 
 Reports of seizure on Form 117 to be made promptly. 
 (T. D. 147; 1357.) 
 
 Seizures not to be made on suspicion. (T. D. 1543.) 
 
 Notice to .sbippers. (T. D. 585.) 
 
 Property needed as evidence should be retained. (United 
 States r. Wilson, 163 Fed., 344.) 
 
 The court has no power to return goods seized by a rev- 
 enue officer against which no proceedings for forfeiture have 
 been instituted. (United States v. Hee, 219 Fed., 1019; 
 T. D. 2191.) 
 
 An in rem suit is a civil proceeding. Preponderance of 
 evidence only required. (Grain Distillery No. 8, etc., v. 
 United States, 204 Fed., 429; T. D. 1837.) 
 
 talfforieiture.''* Sec. 3454. "Whenever any person who is liable to pay 
 anj' tax upon any good,s, wares, or merchandise, sells or 
 causes or allows the same to be sold before the tax is paid 
 to which said property is liable, with intent to avoid such 
 tax, or in fraud of the internal-revenue laws, any debt 
 contracted in such sales, and any security given therefor, 
 unless the same shall have been bona fide transferred to 
 Moiety. jjjj innocent holder, shall be void, and the collection 
 
 thereof shall not be enforced in any court. And if such I 
 goods, wares, or merchandise have been paid for, in whole i 
 or in part, the sum so paid shall be deemed forfeited, and | 
 any person who shall sue for the same in an action of debt I 
 shall recover from the seller the amount so paid, one-half , 
 to his own use and the other half to the use of the United ' 
 States. 
 ie?cMng"*empty Sec. 3455. "Wlieuevcr any person sells, gives, purchases, ' 
 a"'e?''ltc ^ penai-°'' reccives any box, barrel, bag, vessel, package, wrapper, \ 
 ties.' ' cover, or envelope of any kind, stamped, branded, or j 
 marked in any Vi^ay so as to show that the contents or | 
 intended contents thereof have been duly inspected, or , 
 that the tax thereon has been paid, or that any provision 
 of the internal-revenue laws has been complied with, 
 whether such stamping, branding, or marking may have 
 been a duly authorized act or may be false and counter- 
 feit, or otherwise without authority of law, said box, bar- 
 rel, bag, A'essel, package, wrapper, cover, or envelope being 
 empty, or containing anything else than the contents 
 which were therein when said articdes had been so law- 
 fully stamped, branded, or marked by an officer of the 
 revenue, he shall be liable to a penalty of not less than fifty 
 etc^*™'c^h*"p"ck-iior more than five hundred dolars. And every person 
 ages'. ^ho makes, manufactures, or produces any box, barrel, 
 
 bag, vessel, package, wrapper, cover, or enveloiDe, stamped, 
 branded, or marked, as above described, or stamps, 
 brands, or marks the same, as hereinbefore recited, shall 
 be liable to penalty as before provided in this section. 
 And every person who violates the foregoing provisions 
 of this section, with intent to defraud the revenue, or to 
 defraud any person, shall be liable to a fine of not less 
 than one thousand nor more than five thousand dollars, or 
 to imprisonment for not less than six months nor more 
 than five JBArs^ °^^ ^idi^^^ ^* tiie discretion of the court. 
 And all anMU^^S^W, '^^&?P^wcchased, received, made, 
 
PROVISIONS COMMON TO SEVERAL OBJECTS OF TAXATION. 597 
 
 manufactured, produced, branded, stamped, or marked 
 
 in violation of the provisions of this section, and all their corilctei'""' 
 
 contents, shall be forfeited to the United [States]. 
 
 A person can not buy a package containing distilled 
 spirits, already stamped and branded, and talce out the con- 
 tents and put in other distilled spirits of a lower proof, with- 
 out rendering the property subject to forfeiture. (United 
 States r. Nine Caslis and Packages of Distilled Spirits, 51 
 Fed., 191.) 
 
 Empty cigar boxes. (T. D. 873.) 
 
 The phrase " anything else " in section 3455 does not in- 
 clude substances that are not in themselves taxable. 
 (United States r. A. Graf Distilling Co., 208 U. S., 198; 
 T. T>. 1304.) For decisions in lower courts see 129 Fed., 
 329, and 125 Fed., 52; T. D. 701. 
 
 Proceedings for forfeiture — evidence. (Corbin & Co. v. 
 United States, 181 Fed., 296; 104 C. C. A., 278). 
 
 Sec. 3456. If any distiller, rectifier, wholesale liquor tJttitarl by'^ ^f- 
 dealer, or manufacturer of tobacco or cigars, shall know- tmers, rectifiers, 
 ingly or willfully omit, neglect, or refuse to do or cause deaierf a^nd min- 
 to be done any of the things required by law in the carry- {Jaeco^'or^ dga's^ 
 ing on or conducting of his business, or shall do anything «or omitting 
 by this Title prohibited, if there be no specific penalty or ancr^^or''doh?g 
 punishment imposed by any other section of this Title *'''"^^ iorbidden. 
 for the neglecting, omitting or refusing to do, or for the 
 doing or causing to be done the thing required or pro- 
 hibited, he shall pay a penalty of one thousand dollars; 
 and if the person so offending be a distiller, rectifier, or 18*7' [i^'stS.', 
 wholesale liquor dealer, all distilled spirits or liquors ^^y^^y,^i 
 owned by him or in which he has any interest as owner, corrected, 
 and if he be a manufacturer of tobacco or cigars, all to- 
 bacco or cigars found in his manufactory shall be for- 
 feited to the United States. 
 
 United States r. Two hundred Barrels Whisky (95 U. S., 
 571; 24 Int. Rev. Rec, 3). United States v. One hundred 
 and thirty-three Casks of Distilled Spirits (11 Int. Rev. 
 Eec, 191). United States v. One thousand four hundred 
 and twelve Gallons Distilled Spirits (10 Blatch., 42S ; 17 
 Int. Rev. Rec, 86). United States v. One Rectifying Estab- 
 lishment (11 Int. Rev. Rec, 45; Fed. Cas. No. 15952). 
 
 This section was not intended to cumulate or increase 
 punishment. (United States v. Four thousand eight hun- 
 dred Gallons of Spirits, 13 Int. Rev. Rec, 52.) 
 
 Intent. (Felton v. United States, 96 V. S., 699; 24 Int. 
 Rev. Rec, 252.) 
 
 Meaning of the words " knowingly and willfully." (A 
 Quantity of Distilled Spirits, etc, 3 Ben., 552 ; Fed. Cas. No. 
 11495; 10 Int. Rev. Rec, 206; 11 Id., 3.) 
 
 The guilty Intent to be determined by the facts and cir- 
 cumstances. A person intends the natural and probable 
 consequences of acts intentionally done. (Agnew v. United 
 States, 165 U. S., 57.) 
 
 Sec. 3457. In every case where any goods or commodi- ciudlaf^^lrUH- 
 ties are forfeited under any internal-revenue law, all "« "' soods. 
 casks, vessels, cases, or other packages whatsoever, con- 
 taining, or which shall have contained such goods or 
 commodities, respectively, shall be forfeited. Goods seized 
 
 Sec. 3458. Any goods, wares, merchandise, articles, or may be delivered 
 objects which may be S^^^ffllifc^ie/Wjttrei^sjftSisions of sec- %M^s^iLu^!"^ 
 
598 PROVISIONS COMMON TO SEVEEAL OBJECTS OF TAXATION". 
 
 tion thirty- four hundred and fifty-three, by any collector 
 
 or deputy collector, may, at the option of the collector, be 
 
 delivered to the marshal of the district, and remain in the 
 
 care and custody and under the control of said marshal, 
 
 until he shtill obtain possession by process of law. And the 
 
 w vl^^^"^^' ^^^^ °^ seizure made before process issues shall be tax- 
 
 co, etc!7'soid o'n able by the court. And where any whislsy or tobacco, or 
 
 ture?etc!, marilt ^^^'^^^ article of manufacture or produce, requiring brands, 
 
 ''tai's'^t^' b^"i stamps, or marks of whatever kind to be placed thereon 
 
 LeTby "office?. ' shall be sold upon distraint, forfeiture, or other process 
 
 provided by law, the same not having been branded, 
 
 stamped, or marked, as required by law, the officer selling 
 
 the same shall, upon sale thereof, fix or cause to be affixed 
 
 the brands, stamps, or marks, so required, and deduct the 
 
 expense thereof from the proceeds of such sale. 
 
 Stamping tobacco, snuff, or cigars sold under distraint or 
 forfeited. (Sec. 3369, p. 383.) 
 
 Destruction of forfeited tobacco, snuff, or cigars which 
 will not seU for a price equal to the tax. (Sec. 3369, 
 p. 383.) 
 
 Provision where spirits will not sell for price equal to 
 tax. (Sees. 3334, p. 288, 3450, p. 592; Regulations No. 2, 
 revised, p. 47.) ^, 
 
 Property sold under distraint. (Sec. 3191, p. 121.) 
 
 Collectors should be careful to render to the clerk of the 
 court their bill of costs as soon as the marshal takes 
 possession of the property, or very soon thereafter, which 
 expenses are payable from appropriation " Salaries, fees, 
 and expenses of marshals, United States courts." (XIII 
 Comp. Dec. 316.) 
 
 Payment of expenses of collectors in seizure cases: Ex- 
 penses incurred by a collector of internal revenue in the 
 care of property seized for violation of law and turned 
 over to the marshal under the provisions of section 3458 
 are payable from the appropriation for " Miscellaneous ex- 
 penses, Internal-Kevenue Service." (15 Compt. Dec. 782; 
 T. D. 1506.) 
 
 Payment of expenses of marshals : Expenses incurred by 
 a marshal in the care of property turned over to him by 
 a collector under the provisions of section 34.58, when 
 taxed by the court, are payable from the appropriation 
 for " Salaries, fees, and expenses of marshals. United 
 States courts," even though all proceedings be compromised 
 under the provisions of sections 3229 and 3230, Revised 
 Statutes. (T. D. 1507.) 
 
 The provision allowing the court to tax in favor of the 
 collector the costs of seizure made before process issues 
 may be properly construed to cover any necessary expenses 
 of watching property seized by a collector for such time 
 as shall necessarily elapse between the seizure by the col- 
 lector and the seizure by the marshal under process; but 
 It can not be extended to cover a charge for custody dur- 
 ing an unreasonable delay. (Fifteen Empty Barrels, etc., 
 1 Ben., 125.) ^ 
 
 istawf "f o^ d's Sec. 3459. When any property which is seized under the 
 seized, etc. foregoing provisious of section thirty- four hundred and 
 fifty-three is liable to perish or become greatly reduced in 
 price or value by keeping, or when it can not be kept with- 
 out great expense, the owner thereof, or the marshal of the 
 district, may apply to the collector of the district to ex- 
 amine it; 'sMi?f,<^kym(^(^m of the said collector, it 
 
PEOVISIONS COMMOIir TO SEVERAL OBJECTS OF TAXATION. 599 
 
 shall be necessary that the aaid property' should be sold to 
 prevent such waste or expense, he shall appraise the same ; 
 and thereupon the owner shall have said property re- 
 turned to him upon giving bond in such form as may be 
 prescribed by the Commissioner of Internal Eevenue, and 
 in an amount equal to the appraised value, with such 
 sureties as the collector shall deem good and sufficient, to 
 abide the final order, decree, or judgment of the court hav- 
 ing cognizance of the case, and to pay the amount of said 
 appraised value to the collector, marshal, or otherwise, as 
 he may be ordered and directed by the court, which bond 
 shall be filed by said collector with the United States dis- 
 trict attorney for the district in which said proceedings 
 in rem may be commenced: Provided^ That in case said 
 bond shall have been executed and the property returned 
 before seizure thereof by virtue of the process aforesaid, 
 the marshal shall give notice of pendency of proceedings 
 in court to the parties executing said bond, by personal 
 service or publication, and in such manner and form as 
 the court may direct, and the court shall therelipon have 
 jurisdiction of said matter and parties in the same man- 
 ner as if such property had been seized by virtue of the 
 process aforesaid. But if said owner shall neglect or re- ^f ^^^3''"^ ™"' 
 fuse to give said bond, the collector shall issue to a deputy 
 collector or to the marshal aforesaid an order to sell the 
 same; and the deputy collector or marshal shall there- 
 upon advertise and sell the said property at public auc- 
 tion in the same manner as goods may be sold on final 
 execution in said district; and the proceeds of the sale, 
 after deducting the reasonable costs of the seizure and 
 sale, shall be paid to the court aforesaid, to abide its final 
 order, decree, or judgment. 
 
 See section 3331, page 286, as to release of distilleries. 
 
 Form of bond authorized by section 3459 for release of 
 property seized under section 3453, Revised Statutes. 
 (Regulations No. 12, revised, p. 50.) 
 
 Instructions as to acceptance of bond. (T. D. 2511.) 
 
 United States v. Nlnety-tvsro Barrels (Fed. Cas., No. 
 15892 ; 8 Blatch., 480. ) United States v. 17 Empty Barrels 
 (3 Dill., 285; Fed. Cas., No. 162.55; 21 Int. Rev. Rec, 
 391.) United States r. A lot of Leaf Tobacco (2 Ben., 76; 
 Fed. Cas. No. 15627; 6 Int. Rev. Rec, 222.) United States 
 V. 59,650 Cigars (T. D., 992.) 
 
 The court has power to release on bond independent of 
 .any statute. (United States v. 300 Barrels of Whiskey, 2 
 Int. Rev. Rec, 165; Fed. Cas. No. 16510. But see United 
 States V. Chas. Hee, T. D. 2191. ) 
 
 Sec. 3460. In all cases of seizure of any goods, wares, Proceedings on 
 
 1 T. 1- ^ • A_ i. £. ^ • 1. 1 seizure of goods 
 
 or merchandise, as being subject to lorteiture under any valued at $6oo or 
 provision of the internal-revenue laws, which, in the ''^^^■ 
 opinion of the collector or deputy collector making the 
 seizure, are of the appraised value of five hundred dollars 
 or less, the said collector or deputy collector shall, except 
 in cases otherwise provided, proceed as follows : 
 
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600 PROVISIONS COMMON TO SEVERAL OBJECTS OF TAXATION. 
 
 prSlcmeDt? *''" First. He shall cause a list containing a particular de- 
 scription of the goods, wares, or merchandise seized to be 
 prepared in duplicate, and an appraisement thereof to be 
 made by three sworn appraisers, to be selected by him, 
 who shall be respectable and disinterested citizens of the 
 United States residing within the collection-district 
 wherein the seizure was made. Said list and appraise- 
 ment shall be properlv attested by the said collector or 
 deputy collector and tne said appraisers, for which serv- 
 ice each of the said appraisers shall be allowed the sum 
 of one dollar and fifty cents a day, to be paid in the man- 
 ner provided by law for other necessary charges of col- 
 iGctors 
 
 ^^Notice of seiz. Second. If the said goods are found by the said ap- 
 praisers to be of the value of five hundred dollars or less, 
 the said coUectgr or deputy collector shall publish a no- 
 tice for three weeks, in some newspaper of the district 
 where the seizure was made, describing the articles, and 
 stating the time, place, and cause of their seizure, and re- 
 quiring any person claiming them to appear and make 
 such claim within thirty days fi'om the date of the first 
 publication of such notice. 
 
 filed.'**" *" *"* Third. Any person claiming the goods, wares, or mer- 
 chandise so seized, within the time specified in the notice, 
 may file with the said collector or deputy collector a 
 claim, stating his interest in the articles seized, and may 
 
 .nt""'^ of claim- gxecutc a boud to the United States in the penal sum of 
 two hundred and fifty dollars, with sureties to be aj)- 
 proved by the said collector or deputy collector, condi- 
 tioned that, in case of condemnation of the articles so 
 seized, the obligors shall pay all the costs and expenses 
 of the proceedings to obtain such condemnation ; and upon 
 the delivery of such bond to the collector or deputy col- 
 lector, he shall transmit the same, with the duplicate list 
 or description of the goods seized, to the United States 
 district attorney for the district, and said attorney shall 
 proceed thereon in the ordinary manner prescribed by 
 law. 
 
 and^^dispoEaT^of Fourth. If HO claim is interposed and no bond is given 
 
 proceeds. witliin the time above specified, the collector or deputy 
 
 collector, as the case may be, shall give ten days' notice of 
 the sale of the goods, wares, or merchandise by publica- 
 tion, and, at the time and place specified in the notice, 
 shall sell the articles so seized at public auction, and, after 
 deducting the expense of appraisement and sale, he shall 
 deposit the proceeds to the credit of the Secretary of the 
 Treasury. 
 
 Instructions as to the mode of procedure under this sec- 
 tion. (Kegulations, No. 2, revised, p. 131.) 
 
 Instructions as to disposition of property seized. (Cir, 
 No. 580; T. D. 209.) 
 
 Instructions in regard to reports. (T. D. 623.) 
 
 The gross amount of proceeds of sale to be covered Into 
 
PROVISIONS COMMON TO SEVERAL OBJECTS OF TAXATION. 601 
 
 T. D. 1373; Cir. T25, amended by act of Jlay 10, 1916, 
 p. 129). 
 
 Provision relative to spirits wliicla will not sell for price 
 equal to the tax. ( sec. 3334, p. 288. ) 
 
 The law provides that the gross amount of all collections 
 shall be paid into the Treasury. (22 Compt. Dec, 338.) 
 
 Expediting disposition of property detained for viola- 
 tion of law. (T. D. 1357.) 
 
 Keport of sales. (T. D. 1696.) 
 
 Sec. 3461. "Within one year after the sale of any goods, „mfssi'm S '" 
 ■wares, or merchandisej as provided in the preceding sec- jYs"ributior^'^ ' 
 tion, any per.son claiming to be interested in the property 
 sold may apply to the Secretary of the Treasury for a re- 
 mission of the forfeiture thereof, or of am- part thereof, 
 and a restoration of the proceeds of the sale ; and the said 
 Secretary may grant the same upon satisfactory proof, to 
 be furnished in such manner as he shall prescribe: Pro- 
 vided, That it shall be satisfactorily shown that the appli- 
 cant, at the time of the seizure and sale of the said prop- 
 erty, and during the intervening time, was absent, out of 
 the United States, or in such circumstances as prevented 
 him from knowing of the seizure, and that he did not 
 know of the same ; and also that the said forfeiture was 
 incitrred without willful negligence or any intention of 
 fraud on the part of the owner of said property. If no 
 application for .such restoration is made within one year, 
 as hereinbefore prescribed, the Secretary of the Treasury 
 shall, at the expiration of the said time, cause the proceeds 
 of the sale of the said property to be distributed according 
 to law, as in the case of goods, wares, or merchandise con- 
 demned and sold pursuant to the decree of a competent 
 court. 
 
 Sec. 3462. The several judges of the circuit and district ^^l^^^"^ ^"- 
 courts of the United States, and commissioners of the cir- 
 cuit courts, may. within their respective jurisdictions, 
 issue a search warrant, authorizing any internal-revenue 
 officer to search any premises within the same, if such 
 officer makes oath in writing that he has reason to believe, 
 and does believe, that a fraud upon the revenue has been 
 or is being committed upon or by the use of the said 
 premises. 
 
 24 Op. Atty. Gen., 685. 
 
 Although the search warrant may have been iraprovi- 
 dently issued, the evidence obtained by means of the search 
 is not inadmissible. (Ripper v. United States, T. D. 1609.) 
 
 Seizure of private papers. (United States r. AVilson, 163 
 Fed., 338; United States r. Abrams, 230 Fed., 313; Adams 
 r. New York, 192 U. S., 585.) 
 
 Seizures and searches — private papers, (ilay c. United 
 States, 199 Fed., 53; T. D. 1798.) 
 
 Private papers seized — returned. (United States v. Fried- 
 berg, 233 Fed., 314; Weeks v. United States, 232 U. S., 383; 
 T. D. 1964.) 
 
 Actions against a collector for wrongful seizure. (Kerch- 
 eval i: Allen, 220 Fed., 262.) 
 
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602 PROVISIONS COMMON TO SEVERAL OBJECTS OF TAXATIOST. 
 
 AN ACT To * * * better enforce the criminal laws of the 
 United States, and for other purposes. — June 15, 1917 (40 Stat., 
 217, 228). 
 
 Title XI. 
 
 SEARCH WAREAKTS. 
 
 izeTtolLue*''"" Section 1. A search warrant authorized by this title 
 may be issued by a judge of a United States district 
 court, or by a judge of a State or Territorial court of 
 record, or by a United States commissioner for the dis- 
 trict wherein the property sought is located. 
 
 designated. ' ° ^' ^^^' ^- "^ Search Warrant may be issued under this title 
 upon either of the following grounds : 
 
 BtoTe" ?r°^em^ ■'- When the property was stolen or embezzled in viola- 
 
 bezzied. tion of a law of the United States ; in which case it may 
 
 be taken on the warrant from any house or other place in 
 which it is concealed, or from the possession of the per- 
 son by whom it was stolen or embezzled, or from any per- 
 son in whose possession it may be. 
 
 mit^a^feionyT ^" When the property was used as the means of com- 
 mitting a felony; in which case it may be taken on the 
 warrant from any house or other place in which it is con- 
 cealed, or from the possession of the person by whom it 
 was used in the commission of the offense, or from any 
 person in whose possession it may be. 
 
 s i^d° a"^ to'dgn ^- When the property, or any paper, is possessed, con- 
 
 gover»meHt. troUcd, or used in violation of section twentj'-two of this 
 title ; in which case it may be taken on the wan'ant from 
 the person violating said section, or from any person in 
 whose possession it may be, or from any house or other 
 place in which it is concealed. 
 DeBcriptive af- Sec. 3. A Search warrant can not be issued but upon 
 avit require . pj-QJ^g^ij^g cause. Supported by affidavit, naming or describ- 
 ing the person and particularly describing tlie property 
 and the place to be searched. 
 
 before^ ^s'e''''™ ^^^^ ^' ^^^^ ji-^^ge OF commissioncr must, before issu- 
 ing the warrant, examine on oath the complainant and 
 any witness he may produce, and require their affidavits 
 or take their depositions in writing apd cause them to be 
 subscribed by the parties making them. 
 
 established*" ^^ ^^^' ^' '^^ affidavits or depositions must set forth the 
 facts tending to establish the grounds of the application 
 or probable cause for believing that they exist. 
 
 fled"office*°. ''"^''' Sec. 6. If the judge or commissioner is thereupon 
 satisfied of the existence of the grounds of the application 
 or that there is probable cause to believe their existence, 
 he must issue a search warrant, signed by him with his 
 name of office, to a civil officer of the United States duly 
 authorized to enforce or assist in enforcing any law 
 thereof, or to a person so duly authorized by the Presi- 
 
 roundli™"' ° ' ^^^^ °^ *^® United States, stating the particular grounds 
 or probable cause for its issue and the names of the per- 
 sons whose affidavits have been taken in support thereof, 
 and comnj^^ji^^ to^/l^l^^^h to search the person 
 
PROVISIOlSrS COMMON TO SEVERAL OBJECTS OF . TAXATION". 603 
 
 or place named, for the property specified, and to bring 
 it before the judge or commissioner. 
 
 Sec. 7. A search warrant may in all cases be served by strfcted^o'^desri 
 any of the officers mentioned in its direction, but by no nated officer. 
 other person, except in aid of the officer on his requiring 
 it, he being present and acting in its execution. 
 
 Sec. 8. The officer may break open any outer or inner Forcing en- 
 door or window of a house, or any part of a house, or ^'^^""^ '° execute. , 
 anything therein, to execute the warrant, if, after notice 
 of his authority and purpose, he is refused admittance. 
 
 Sec. 9. He may break open any outer or inner door or . use of force to 
 window of a house for the purpose of liberating a person ewf^*^ seweT, 
 who, having entered to aid him in the execution of the 
 warrant, is detained therein, or when necessary for his 
 own liberation. 
 
 Sec. 10. The judge or commissioner must insert a di- . Time of serv- 
 rection in the warrant that it be served in the daytime, 
 unless the affidavits are positive that the property is on 
 the person or in the place to be searched, in .which case 
 he may insert a direction that it be served at any time 
 of the day or night. 
 
 Sec. 11. A search warrant must be executed and re- l™'* '"^ exe- 
 turned to the judge or commissioner who issued it within turn. 
 ten days after its date; after the expiration of this time 
 the warrant, unless executed, is void. 
 
 Sec. 12. When the officer takes property under the ^f en " tik™ " 
 warrant, he must give a copy of the warrant together ^^°^^^ ^ 
 with a receipt for the property taken (specifying it in 
 detail) to the person from whom it was taken by him, 
 or in whose possession it was found ; or, in the absence of 
 any person, he must leave it in the place where he found 
 the property. 
 
 Sec. 13. The officer must forthwith return the war- Return of war- 
 
 .-,.-, .. ITT 1' T£Lnt and deliv- 
 
 rant to the judge or commissioner and deliver to him a ery of property 
 written inventory of the property taken, made publicly '" ■'"'^^'^' *''' 
 or in the presence of the person from whose possession it 
 was taken, and of the applicant for the warrant, if they 
 are present, verified by the affidavit of the officer at the 
 foot of the inventory and taken before the judge or com- 
 missioner at the time, to the following effect : " I, E. S., 
 the officer by whom this warrant was executed, do swear 
 that the above inventory contains a true and detailed 
 account of all the property taken by me on the warrant." 
 
 Sec. 14. The judge or commissioner must thereupon, if ventory! °* '"' ' 
 required, deliver a copy of the inventory to the person 
 from whose possession the property was taken and to the 
 applicant for the warrant. 
 
 Sec. 16. If the grounds on which the warrant was ; s^^T^'^cortro- 
 issued be controverted, the judge or commissioner must verted. 
 proceed to take testimony in relation thereto, and the 
 testimony of each witness must be reduced to writing 
 and subscribed by each witness. 
 
 Sec. 16. If it appears that the property or paper taken Restoration a 
 is not the same as th^i§m^&>^ Midlib90ft®Tant or that taken" " ° " ^ ^' 
 
tion. 
 
 Punishment for 
 obstructing, etc. 
 
 604 PROVISION'S COMMON TO SEVEEAX, OBJECTS OF TAXATION. 
 
 there is no probable cause for believing the existence of 
 
 the grounds on which the warrant was issued, the judge 
 
 or commissioner must cause it to be restored to the per- 
 
 Retention, etc., SOU from which it was taken; but if it appears that the 
 
 If probable cause . ,t » ,i iiji 'ii- 
 
 Bhown. property or paper taken as the same as that described in 
 
 the warrant and that there is probable cause for believing 
 the existence of the grounds on which the warrant was 
 issued, then the judge or commissioner shall order the 
 same retained in the custody of the person seizing it or 
 to be otherwise disposed of according to law. 
 Final disposi- Qec. 17. The judge or commissioner must annex the 
 aflBdavits, search warrant, return, inventory, and evi- 
 dence, and if he has not power to inquire into the offense 
 in respect to which the warrant was issued he must at 
 once file the same, together with a copy of the record of 
 his proceedings, with the clerk of the court having 
 power to so inquire. 
 
 Sec. 18. Whoever shall knowingly and willfully ob- 
 
 6e"i^'ice"'.""°' """ struct, resist, or oppose any such officer or person in 
 serving or attempting to serve or execute any such search 
 warrant, or shall assault, beat, or wound any such officer 
 or person, knowing him to be. an officer or person so 
 authorized, shall be fined not more than $1,000 or im- 
 prisoned not more than two years. 
 
 perjSy-'^""'"* '"' ^^^' ^^' Sections one hundred and twenty-five and one 
 Vol.' 35, p. hundred and twenty-six of the Criminal Code of the 
 United States shall apply to and embrace all persons 
 making oath or affirmation or procuring the same under 
 the provisions of this title, and such persons shall be 
 subject to all the pains and penalties of said sections. 
 Punishment for gj,^, 20. A persou who maliciously and without prob- 
 
 maliciously pro- tr ■' . , i • i i 
 
 curing warrant, able cause procurcs a search warrant to be issued and 
 executed shall be fined not more than $1,000 or im- 
 prisoned not more than one year. 
 punishment^for Qec. 21. An officcr who iu exccutiug a search warrant 
 ity,*^etc!f i'n exe- willf ully excccds his authority, or exercises it with un- 
 cuting. necessary severity, shall be fined not more than $1,000 or 
 
 imprisoned not more than one year. 
 Punishment^fOT Qec. 22. Wliocver, in aid of any foreign Government, 
 EinlVpei-reta' shall kuowiugly and willfully have possession of or con- 
 Gov^e'^n^'ent."'^" trol ovcr any property or papers designed or intended for 
 use or which is used as the means of violating any penal 
 statute, or any of the rights or obligations of the United 
 States under any treaty or the law of nations, shall be 
 fined not more than $1,000 or imprisoned not more than 
 two years, or both. 
 Existing laws Qec. 23. Nothing contained in this title shall be held 
 
 not impaired. , . . .=' . , . . . » , 
 
 to repeal or impair any existing provisions or law regu- 
 lating search and the issue of search warrants. 
 punFstolnt 7l ^^^- ^*^^- '^1^® Commissioner of Internal Revenue, 
 frauds. with the approval of the Secretary of the Treasury, is 
 
 authorized to pay such sums, not exceeding in the ag- 
 
 Digitized by Microsoft® 
 
 , nil. 
 
PROVISIONS COMMON TO SEVERAL OBJECTS OF TAXATION. 605 
 
 gregate the sum appropriated therefor, as he may deem 
 necessary for detecting and bringing to trial and punish- 
 ment persons guilty of violating the internal-revenue 
 laws, or conniving at the same, in cases where such ex- 
 penses are not otherwise provided for by law. 
 
 Moieties repealed, section 89, act of June 6, 1872. (17 
 Stat., 256.) " Sanborn contract," under act of May 8, 1872 
 (17 Stat, 69), was repealed June 22, 1874. (18 Stat., 192.) 
 
 Construction of ofEer of $300 reward and Circular No. 
 99 and its revisions. (15 Op. Atty. Gen., 88 (Pierpont) ; 
 Williams v. United States, 12 Ct. Cls., 193; Briggs v. 
 rnited States, 15 Ct. Cls., 48.) 
 
 As to marshal or deputy marshal receiving reward. A 
 contract to pay a reward for the arrest of a felon is valid 
 if not made with a public officer or employee on whom the 
 law imposes the duty of making such arrest, or with some 
 officer or employee otherwise excluded from the right to 
 receive such reward. (Hutsel Amarine's case, 2 Lawrence 
 Dec, 545; 28 Int. Rev. Rec, 21.) 
 
 The payment of a reward to an officer for services within 
 the scope of his official duties is contrary to public policy. 
 (Matthews & Gunn v. United States, 32 Ct. Cls., 123.) 
 
 Contingent fees to be paid to guides and posse men. 
 (T. D. 2245.) 
 
 The authority conferred upon the Attorney General by 
 the act of March 3, 1891 (26 Stat., 985), to offer rewards 
 for the detection and prosecution of crimes against the 
 United States, preliminary to the indictment, empowered 
 him to authorize the marshal of the northern district of 
 Florida to offer a reward for the arrest and delivery of a 
 person accused of the committal of a crime against the 
 United States in that district, the reward to be paid upon 
 conviction; and a deputy marshal, who had complied with 
 all the conditions of the offer and of the statute, was entitled 
 to receive the amount of the reward offered. (United 
 States V. Matthews, 173 U. S., 381.) 
 
 Eager v. United States, 35 Ct. Cls., 447. 
 
 Effect of repeal of act allowing moieties on informer's 
 claim for information given prior to repeal. (United 
 States V. Connor, 138 U. S., 61.) 
 
 Rewards for information leading to the detection and 
 punishment of persons violating internal-revenue laws. 
 (Circular, Int. Rev. No. 99, 4th revision; T. D. 21856; 
 Regulations, No. 12, revised, page 51; T. D. 1873; T. D. 
 2229.) 
 
 Commissioner authorized to offer a reward for the re- 
 covery of taxes evaded. (15 Op. Atty. Gen., 133; 22 Int. 
 Rev. Rec, 229.) 
 
 Authority of Commissioner to bind the Government by 
 promising to pay for information. Informer who receives 
 less than 10 per cent can not recover the difference in the 
 Court of Claims. (Green v. United States, 17 Ct. Cls., 
 238; 28 Int. Rev. Rec, 208.) 
 
 Right of Commissioner and Secretary to fix amount of 
 reward. (E. D. Crane v. United States, 34 Int. Rev. Rec, 
 414; 23 Ct. Cls., 94.) 
 
 In the matter of the authority of persons employed under 
 section 3463 to visit, enter into, and examine distilleries, 
 etc. (4 Lawrence Dec, 60.) 
 
 Sec. 1. [Act of July 1, 1918 (40 Stat., 64^).] Punish- Appropriation 
 ment for violations of internal-revenue laws : For detect- frauds. '^''^"'"'^ 
 ing and bringing to trial and punishment persons guilty 
 of violating the internal-revenue laws or conniving at the 
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606 PROVISIONS COMMON TO SEVEBAL OBJECTS OF TAXATION". 
 
 same, including payments for information and detection 
 of such violations, $175,000. 
 
 Legislative, executive, and judicial appropriation act ap- 
 proved July 3, 1918 (40 Stat., 779), provided that not more 
 than $500,000 may be expended from that act for detecting 
 and bringing to trial persons guilty of violating the inter- 
 nal revenue laws. 
 
 Rewards for information. (24 Compt. Dec, 4.30. ) 
 
 Expenses of deputy marshals in locating and raiding stills. 
 (17 Compt. Dec, 1018.) 
 
 The employment of counsel to assist officials of Depart- 
 ment of Justice can not be paid from this appropriation. 
 (22 Compt. Dec, 230.) 
 
 It is the right of every private citizen of the United 
 States to inform a marshal of the United States, or his 
 deputy, of a violation of the internal-revenue laws ; this 
 right is secured by the Constitution; and a conspiracy to 
 Injure, oppress, threaten, or intimidate him in the free exer- 
 cise or enjoyment of this right, or because of his having 
 exercised it, is punishable under sec. 5.508, Revised Statutes 
 (superseded by sec. 19 Criminal Code, act March 4, 1909.) 
 (In re Quarles and Butler, 158 U. S., 532.) 
 
 In Worthington v. Scribner, 109 Mass., 487, the principle 
 was laid down that it is the duty of every citizen to com- 
 municate to his Government any information which he has 
 of the commission of an offense against its laws; and that 
 a court of justice will not compel or allow such information 
 to be disclosed, either by the subordinate officer to whom 
 it is given, by the informer himself, or by any other person, 
 without the permission of the Government, the evidence 
 being excluded not for the protection of the witness or of 
 the party in the particular case, but upon general grounds 
 of public policy, because of the confidential nature of such 
 communications. The authorities are collected and re- 
 viewed in that ease. (Vogel v. Gruaz, 110 U. S., 311.) 
 
 Compensation of possemen. (T. D. 1513 ; T. D. 1873.) 
 
 Purchasing for Sec 3464. The privilege of purchasing supplies of 
 goods^^subjecTto goods imported from foreign countries for the use of the 
 ^^- United States, duty free, which now does or hereafter 
 
 shall exist by provision of law, shall be extended, under 
 such regulations as the Secretary of the Treasury may 
 prescribe, to all articles of domestic production which are 
 subject to tax by the provisions of this Title. 
 
 26 Op. Atty. Gen., 449. (United States r. Mullins, 119 
 Fed., 334.) 
 
 Section 16 of the act of June 26, 1884 (commonly called 
 the shipping act), as amended by section 14 of the act of 
 July 24, 1897 (30 Stat, 151), provides: 
 
 " That all articles of foreign or domestic production 
 needed and actually withdrawn from bonded warehouses 
 and bonded manufacturing warehouses for supplies (not 
 including equipment) of vessels of the United States, en- 
 gaged in foreign trade, or in trade between the Atlantic and 
 Pacific ports of the United States, may be so withdrawn 
 from said bonded warehouses, free of duty or of internal- 
 revenue tax, as the case may be, under such regulations as 
 the Secretary of the Treasury may prescribe; but no such 
 article shall be landed at any port of the United States." 
 
 Regulations in pursuance of the above provisions Septem- 
 ber 24, 1897, Department circular No. 155. (T. D. 18379; 
 T. D. 18643; T. D. 19262.) Articles 410 to 414, both inclu- 
 sl-ve. Customs Regulations, 1915. 
 
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PROVISIONS COMMON TO SEVERAL OBJECTS OF TAXATION. 607 
 
 The immunity from liability to tax is limited to tlie 
 actual contents of the pacliages. (Op. Atty. Gen., 30 Int. 
 Kev. Rec, 94; Id., 101; 33 Int. Rev. Rec, 269.) 
 
 Withdrawal of distilled spirits from bonded warehouse 
 for use of the United States, free of tax, under provisions 
 of section 3464, Regulations No. 7, revised, p. 252. (T. D. 
 1832 ; T. D. 1889 ; T. D. 2653.) 
 
 The law extends the exemption only to cases covered by 
 the regulations. If the regulations are not complied with 
 and goods are delivered without regard thereto, the tax 
 must be paid, and having been paid can not be refunded. 
 (T. D. 2785.) 
 
 Withdrawal of alcohol. (T. Ds. 1734, 1767, 1845.) 
 
 Sec. 2982. [Amended by sec. M, act of August 5, 1909 veld"'^" ™' 
 (-56 Stat., 88), and reenacted, act of October 3, 1913, sec. 
 IT, Par. K {38 Stat., 197) .] The privilege of purchasing 
 supplies from public warehouses, free of duty, and from 
 bonded manufacturing warehouses, free of duty or of 
 internal-revenue tax, as the case may be, shall be ex- 
 tended, under such regulations as the Secretary of the 
 Treasury shall prescribe, to the vessels of war of any na- 
 tion in ports of the United States which maj' reciprocate 
 such privileges toward the vessels of war of the United 
 States in its ports. 
 
 Customs Regulations (1915), article 415. 
 
 Sec. 3433. {Amended by sec. 10, act of October 1, 1890 ■Je"^^i^''fl 
 {26 Stat., 61Ji.).'\ All medicines, preparations, composi- Pfamtirturld i° 
 tions, perfumery, cosmetics, cordials, and other liquors bonded'^ wire" 
 manufactured wholly or in part of domestic spirits, m- '"'"^^^■ 
 tended for exportation, as provided by law, in order to be 
 manufactured and sold or removed, without being 
 charged with duty, and without having a stamp affixed 
 thereto, shall, under such regulations as the Secretary of *^ ''*"'°^' 
 the Treasury may prescribe, be made and manufactured 
 in warehouses similarly constructed to those known and 
 designated in Treasury regulations as bonded warehouses, 
 class two : Provided, That such manufacturer ^ shall first ^°°*' 
 give satisfactory bonds to the collector of internal reve- 
 nue for the faithful observance of all the provisions of 
 law and the regulations as aforesaid, in amount not less 
 than half of that required by the regulations of the Sec- 
 retary of the Treasury from persons allowed bonded 
 warehouses. Such goods, when manufactured in such 
 warehouses, may be removed for exportation, under the ^^^^ moving 
 direction of the proper officer having charge thereof, who 
 shall be designated by the Secretary of the Treasury, 
 without being charged with duty, and without having a 
 stamp affixed thereto. 
 
 Any manufacturer of the articles aforesaid, or of any ^ *j];p}f ^?-^ 
 of them, having such bonded warehouse as aforesaid, shall warehouse. 
 be at liberty, under such regulations as the Secretary of 
 the Treasury may prescribe, to convey therein any ma- 
 terials to be used in such manufacture which are allowed 
 
 1 This word " manufacturer " is erroneously printed " manufactory " in 
 Revised Statutes, edition of ^^tized by MicrOSOft® 
 
608 PROVISIONS COMMON TO SEVERAL, OBJECTS OF TAXATION. 
 
 by the provisions of law to be exported free from tax or 
 duty, as well as the necessary materials, implements, pack- 
 ages, vessels, brands, and labels for the preparation, put- 
 ting up, and export of the said manufactured articles ; and 
 every article so used shall be exempt from the payment 
 of stamp and excise duty by such manufacturer. 
 
 Articles and materials so to be used may be transferred 
 from any bonded warehouse in which the same may be, 
 under such regulations as the Secretary of the Treasury 
 may prescribe, into any bonded warehouse in which such 
 manufacture may be conducted, and may be used in such 
 manufacture, and when so used shall be exempt from 
 stamp and excise duty; and the receipt of the officer in 
 charge, as aforesaid, shall be received as a voucher for the 
 manufacture of such articles. 
 ed^mteriSi"n '^^ materials imported into the United States may, 
 bond. ' ^ "" under such rules as the Secretary of the Treasury may 
 prescribe, and under the direction of the proper officer, be 
 removed in original packages from on shipboard, or from 
 the bonded warehouse in which the same may be, into the 
 bonded warehouse in which such manufacture may be 
 carried on, for the purpose of being used in such manu- 
 facture, without payment of duties thereon, and may 
 there be used in such manufacture. 
 
 If 6 article so removed, nor any article manufactured in 
 said bonded warehouse^ shall be taken therefrom except 
 for exportation, under the direction of the proper officer 
 having charge thereof, as aforesaid, whose certificate, 
 describing the articles by their marks, or otherwise, the 
 quantity, the date of importation, and name of vessel, 
 with such additional particulars as may from time to time 
 be required, shall be received by the collector of customs 
 in cancellation of the bonds, or return of the amount of 
 foreign import duties, 
 s u p e rvision, ^n labor performed and services rendered under these 
 regulations shall be under the supervision of an officer of 
 the customs, and at the expense of the manufacturer. 
 
 Regulations of the Secretary of Treasury relating to the 
 establishment of bonded manufacturing warehouses (Cus- 
 toms Begulations 1915). 
 
 artMeT'intended ^EC. IV. [PwT. M, Act of OctoUv 3, 1913 {38 Stat. 
 
 for exportation J9£) .] That all articles manufactured in whole or in part 
 houseT^"* "*'*' of imported materials, or of materials subject to internal- 
 revenue tax, and intended for exportation without being 
 charged with duty, and without having an internal-rev- 
 enue stamp affixed thereto, shall, under such regulations 
 as the Secretary of the Treasury may prescribe, in order 
 to be so manufactured and exported, be made and manu- 
 factured in bonded warehouses similar to those known 
 and designated in Treasury Regulations as bonded ware- 
 houses, class six: Provided, That the manufacturer of 
 such articles shall first give satisfactory bonds for the 
 
 faithful observance of, all the j)ro visions of law and of 
 Digitizeaby Microsoft® 
 
 etc 
 
■PROVISIONS COMMON TO SEVERAL, OBJECTS OF TAXATION. 609 
 
 such regulations as shall be prescribed by the Secretary 
 of the Treasury: Provided further, That the manufac- 
 ture of distilled spirts from grain, starch, molasses, or 
 sugar, including all dilutions or mixtures of them or 
 either of them, shall not be permitted in such manufac- 
 turing Tvarehouses. 
 
 AVlienever goods manufactured in any bonded ware- 
 house established under the provisions of the preceding 
 paragraph shall be exported. directly therefrom or shall 
 be duly laden for transportation and immediate exporta- 
 tion under the supervision of the proper officer who shall 
 be duly designated for that purpose, such goods shall be 
 exempt from duty and from the requirements relating to 
 revenue stamps. 
 
 Any materials used in the manufacture of such goods, 
 and any packages, coverings, vessels, brands, and labels 
 iised in putting up the same may, under the regulations of 
 the Secretary of the Treasury, be conveyed without the 
 payment of revenue tax or duty into any bonded manu- 
 facturing warehouse, and imported goods may, under the 
 aforesaid regulations, be transferred without the exaction 
 of duty from any bonded warehouse into any bonded 
 manufacturing warehouse ; but this privilege shall not be 
 held to apply to implements, machinery, or apparatus to 
 be used in the construction or repair of any bonded man- 
 ufacturing warehouse or for the prosecution of the busi- 
 ness carried on therein. 
 
 No articles or materials received into such bonded 
 manufacturing warehouse shall be withdrawn or removed 
 therefrom except for direct shipment and exportation or 
 for transportation and immediate exportation in bond to 
 foreign countries or to the Philippine Islands under the 
 supervision of the officer duly designated therefor by the 
 collector of the port, who shall certify to such shipment 
 and exportation, or ladening for transportation, as the 
 case may be, describing the articles by their mark or 
 otherwise, the quantity, the date of exportation, and the 
 name of the vessel: Provided, That the waste material 
 or by-products incident to the processes of manufacture, 
 including waste derived from cleaning rice in bonded 
 warehouses under act of March twenty-fourth, eighteen 
 hundred and seventy- four, in said bonded warehouses may 
 be withdrawn for domestic consumption on the payment 
 of duty equal to the duty which would be assessed and 
 collected, by law, if such waste or by-products were im- 
 ported from a foreign country. All labor performed and 
 services rendered under these provisions shall be under 
 the supervision of a duly designated officer of the customs 
 and at the expense of the manufacturer. 
 
 A careful account shall be kept by the collector of all 
 merchandise delivered by him to any bonded manufac- 
 turing warehouse, and a sworn monthly return, verified 
 14018i°— 20 39 
 
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610 PRavisioNs caMMON tO' several objects oe taxation. 
 
 by the customs officers in charge, shall be made by the 
 manufacturers containmg a detailed statement of all im- 
 ported merchandise used by him in the manufacture of 
 exported articles. 
 
 Before commencing business the proprietor oi any 
 manufacturing warehouse shall file with the Secretary of 
 the Treasury a list of all the articles intended to be manu- 
 factured in such warehoAasBy and state the formula of 
 manufacture and th« names and quantities of the ingredi- 
 ents to be used therein. 
 
 Articles manufactured under these provisions may be 
 withdrawn under such regulations as the Secretary of the 
 Treasury may prescribe for transportation and delivery 
 into any bonded warehouse at an exterior port for the sole 
 purpose of immediate export therefrom: 
 
 Provided, That cigars manufactured in whole of to- 
 bacco imported from any one coimtry, made and manu- 
 factured in such bonded manufacturing warehouses, may 
 be withdrawn for home consumption upon the payment 
 of the duties on such tobacco in its condition as imported 
 under such regulations as the Secretary of the Treasury 
 may prescribe, and the payment of the internal-revenue 
 tax accruing on such cigars in their condition as with- 
 drawn, and the boxes or packages containing such cigars 
 shall be stamped to indicate their character, origin of 
 tobacco from which made, and place of manufacture. 
 
 The provisions of Eevised Statutes thirty-four hundred 
 and thirty-three shall, so far as may be practicable, apply 
 to any bonded manufacturing warehouse established 
 under this act and to the merchandise conveyed therein. 
 ^ withdrawa^^of Sec. 20. [Act of MoTch 1, 1879 {20 StaL,. 327) , as 
 faJturer ^o"?™- amended iy sec. H, act of May 28, 1880 {21 Stat., H5) .] 
 fumery, etc. That Under such regulations and requirements as to 
 stamps, bonds, and other security as shall be prescribed by 
 the Commissioner of Internal Revenue, any manufacturer 
 of medicines, preparations, compositions, perfumeries, 
 cosmetics, cordials, and other liquors, for export, manu- 
 facturing the same in a duly constituted manufacturing 
 warehouse, shall be authorized to withdraw, in origiinal 
 packages, from any distillery-warehouse, so much dis- 
 tilled spirits as he may require for the said purpose, 
 without the payment of the internal-revenue tax thereon. 
 ieatagr°°' '°' Sec. 15. [Act of May 28, 1880 {21 Stat., US).] That 
 where spirits are withdrawn from distillery warehouses 
 for transfer to manufacturing warehouses, under the pro- 
 visions of this actj it shall be lawful, under such rules and 
 regulations and lunitations as shall be prescribed by the 
 Commissioner of Internal Ee^-enue, with the approval of 
 the Secretary of the Treasury, for an allowance to be 
 made for leakage or loss by any unavoidable accident, and 
 without any fraud or negligence of the distiller, owner, 
 exporter, carrier, or their agents or employees, occurring 
 
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PEOVISIOXS COilMON TO SEVEHAL OBJECTS OF TAXATION. 611 
 
 during transportation from a distiUery waiehouse to a 
 manufacturing warekouse. 
 
 S€e Begulations, No. 29, relative to transportation and 
 exportation of distilled spirits in bond free of tax. 
 Form of continuing bond. (I^ D. 2495.) 
 
 Sec. 3434. Superseded by Paragraph M, Section IV, 
 Act of October 3, 1913 (p. 757). 
 
 Sec. IV. iPar. O, Act of October 3, 1913 {38 Stat., to^^Vo^'aS- 
 19£). Extract. 1 That on the exportation o£ flavoring tic aicohoi used 
 
 , . T- • 1 A '1 1 J ■ /'IT ^ m medicinal and 
 
 extracts, medic urnl or toilet preparations (including per- toUet prepara- 
 
 fumery) hereafter manufactured or produced in the *'°'^' 
 
 United States in part from domestic alcohol on which an 
 
 internal-revenue tax has been paid, there shall be allowed 
 
 a drawback equal in amount to the tax found to have 
 
 been paid on the alcohol so used: Provided, That no 
 
 other than domestic tax-paid alcohol shall have been used 
 
 in the manufacture or production of such preparations. 
 
 Such drawback shall be determined and paid under such 
 
 rules and regulations, and upon the filing of such notices, 
 
 bonds, bills of lading, and other evidence of payment of 
 
 tax and exportation, as the Secretary of the Treasury 
 
 shall prescribe. 
 
 That the provisions of this section shall apply to mate- 
 rials used in the construction and equipment of vessels 
 built for foreign account and ownershipj or for the Gov- 
 ernment of any foreign country, notwithstanding that 
 such vessels may not within the strict meaning of the 
 term be articles exported. 
 
 Regulations relative to the use of rectified alcohol in the 
 manufacture for export of flavoring extracts, etc. (T. 
 D. 1968.) 
 
 Articles manufactured in the United States from imported 
 materials for exportation, and flavoring extracts, toilet and 
 medicinal preparations manufactured from domestic tax- 
 paid alcohol. (T. D. 33809.) 
 
 Drawback on flavoring extracts, toilet and medicinal 
 preparations manufactured from domestic tax-paid alcohol. 
 See Customs Regulations of 1915, article 882. (T. D. 
 31695. ) 
 
 Drawback allowed under this paragraph on domestic al- 
 cohol used in manufacture of medicinal and toilet articles 
 to include additional tax paid on such alcohol under the 
 revenue act of October 3, 191T. (T. D. 2572.) 
 
 For drawback of tax on distilled spirits exported in " dis- 
 tillers' original casks or packages," see section 3329, R. S. 
 p. 279), and Regulations Na. 29, revised. 
 
 For drawback of tax on exported tobacco, .suufE, and 
 cigars, see section 3386, R. S. (p. 393), and Regulations, No. 
 29, revised. 
 Sec. IV. [Par. P, Act of October 3, 1913 {38 Stat., ^Artkieg mm- 
 192).] That upon the reimportation of articles once ex- m' Avenue" tax 
 ported, of the growth, product, or manufacture of thepafd,^^w'as°'^'r^ 
 United States, upon which no internal tax has been funded, 
 assessed or paid, or upon which such tax has been paid 
 and refunded by allowance or drawback, there shall be 
 levied, collected, and paid a duty equal to the tax im- 
 
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612 -PBOVisiosrs common to several, objects of taxation. 
 
 posed by the internal-revenue laws upon such articles, 
 except articles manufactured in bonded warehouses and 
 exported pursuant to law, which shall be subject to the 
 same rate of duty as if originally imported, but proof of 
 the identity of such articles shall be made under general 
 regulations to be prescribed by the Secretary of the 
 Treasury. 
 
 actXISl'TssJ '^^^" ^^^^' -^^ ^°* entitled " An act further to provide 
 (4 Stat., 632). for the collection of duties on imports," passed March 
 second, eighteen hundred and thirty-three, shall not be so 
 construed as to apply to cases arising under an act en- 
 titled " An act to provide internal revenue to support the 
 Government, to pay interest on the public debt, and for 
 other purposes," passed June thirtieth, eighteen hundred 
 and sixty-four, or any act in addition thereto or in 
 amendment thereof, nor to any case in which the validity 
 or interpretation of said act or acts shall be in issue. 
 
 Hornthall v. Collector (9 Wall., 566) ; Assessor v. Os- 
 bornes (9 Wall., 577). 
 
 The words " revenue laws," wliere used broadly and 
 generally, include internal revenue as well as customs laws. 
 (United States v. Dustin, 15 Int. Rev. Rec, 30.) 
 
 AN ACT Relative to recognizances, stipulations, bonds, and under- 
 takings, and to allow certain corporations to be accepted aa 
 surety thereon. 
 
 [Act August 13, 1894 (28 Stat. 270), amended by act of March 23, 1910 
 (36 Stat. 241).] 
 
 That whenever any recognizance, stipulation, bond, or 
 undertaking conditioned for the faithful performance of 
 any duty, or for doing or refraining from doing any- 
 thing in such recognizance, stipulation, bond, or under- 
 taking specified, is by the laws of the United States 
 required or permitted to be given with one surety or 
 with two or more sureties, the execution of the same or 
 the guaranteeing of the performance of the condition 
 Bonds executed thereof shall be suiBcient when executed or guaranteed 
 towy 'by'T'cor^ solcly by a corporation incorporated under the laws of 
 ''"ffi ''°"t ^ '' "^ " the United States, or of any State having power to 
 guarantee the fidelity of persons holding positions of 
 IDublic or private trust, and to execute and guarantee 
 bonds and undertakings in judicial proceedings: Pro- 
 vided, That such recognizance, stipulation, bond, or 
 undertaking be approved by the head of department, 
 court, judge, officer, board, or body executive, legislative, 
 or judicial required to approve or accept the same. But 
 no officer or person having the approval of any bond shall 
 exact that it shall be furnished by a guarantee company 
 or b}' any particular guarantee company. 
 
 Sec. 2. That no such company shall do business under 
 the provisions of this Act beyond the limits of the State 
 or Territory under whose laws it was incorporated and in 
 which its principal office is located, nor beyond the limits 
 
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PROVISIONS COJIMOSr TO SEVERAL OBJECTS OF TAXATION. 613 
 
 of the District of Columbia, wlien such company was in- 
 corporated under its laws or the laws of the United 
 States and its principal office is located in said District, 
 until it shall by a written power of attorney appoint some „/°^^" °' *"'"' 
 person residing within the jurisdiction of the court for "^^' 
 the judicial district wherein such suretyship is to be un- 
 dertaken, who shall be a citizen of the State, Territory, 
 or District of Columbia, wherein such court is held, as its 
 agent, upon whom may be served all lawful process 
 against such company, and who shall be authorized to 
 enter an appearance in its behalf. A copy of such power a copjr of power 
 of attorney, duly certified and authenticated, shall be 816?'"!"? derk 
 filed with the clerk of the district court of the United eLrt.'"' '^'^'"''* 
 States for such district at each place where a term of 
 such court is or may be held, which copy, or a certified 
 copy thereof, shall be legal evidence in all controversies 
 arising imder this Act. If anv such agent shall be re- '^™«" agent 
 
 P • T 1 • " ii ■ • removed, etc. 
 
 moved, resign, or die, become insane, or otherwise incapa- 
 ble of acting, it shall be the duty of such company to ap- 
 point another agent in his place as hereinbefore pre- 
 scribed, and until such appointment shall have been 
 made, or during the absence of any agent of such com- 
 pany from such district, service of process may be upon 
 the clerk of the court wherein such suit is brought, with 
 like effect as upon an agent appointed by the company. 
 The officer executing such process upon such clerk shall esf*^" '°'' °' ^'^°°' 
 immediately transmit a copy thereof by mail to the com- 
 pany, and state such fact in his return. A judgment de- Judgment. 
 cree, or order of a court entered or made after service of 
 process as aforesaid shall be as valid and binding on 
 such company as if served with process in said district. 
 
 Sec. 3. {Amended hy act of March 23, 1910; 36 Stat. or'^araciL''''of1n- 
 241). That every company, before transacting any busi- t^P^^e^gf^' ''?;' 
 ness under this Act, shall deposit with the Secretary of s^re^ary^ of^the 
 the Treasury of the United States a copy of its charter ''"'f ^""7- 
 or articles of incorporation, and a statement, signed and 
 sworn to by its president and secretary, showing its assets 
 and liabilities. If the said Secretary of the Treasury 
 shall be satisfied that such company has authority under 
 its charter to do the business provided for in this Act, 
 and that it has a paid-up capital of not less than two 
 hundred and fifty thousand dollars, in cash or its equiva- 
 lent, and is able to keep and perform its contracts, he 
 shall grant authority in writing to such company to do 
 business under this Act. 
 
 Sec. 4. That every such company shall, in the months ^J^^^ stSent 
 of January, April, July, and October of each year, file during the yea", 
 with the said Secretary of the Treasury a statement, letTS 'uabfit 
 signed and sworn to by its president and secretary, show- *'«=■ 
 ing its assets and liabilities, as is required by section 
 three of this Act. And the said Secretary of the Treas- 
 ury shall have the power, and it shall be his duty, to re- 
 voke the authority of any such company to transact any 
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614 PROVISIONS COMMOK TO SEVERAL OBJECTS OF TAXATIOK". 
 
 new business under this Act whenever in his judgment 
 such company is not solvent or is conducting it's business 
 in violation of this Act. He may institute inquiry at ^ny 
 time into the solvency of said company and may require 
 that additional security be given at any time by any prin- 
 cipal when he deems such company no longer sufficient 
 sefturity. 
 
 An act ta amend an act approved August 13, 1894,, en- 
 titled "An act relative to recognizances, stipulations, bonds, 
 and undertakings, and to allow certain corporations to be 
 accepted as surety thereon," approved March 23, 1910. 
 (S&Stat, 241. > 
 be^^^Tn an? ^^^' ^" '^^^ ^^^J suTctj Company doing business under 
 u. s. court. the provisions of this Act may be sued in respect thereof 
 in any court of the United States which has now or here- 
 after may have jurisdiction of actions or suits upon such 
 recognizance, stipulation, bond^ or undei'taking, in the 
 district in which such recognizance, stipulation, bond, or 
 undertaking was made or guaranteed, or in the di.strict 
 in which the principal office of such company is located. 
 And for the purposes of this Act such recognizance, stipu- 
 lation, bond, or undertaking shall be treated as made or 
 guaranteed in the district in which the office is located, to 
 which it is returnable, or in which it is filed, or in the 
 district in which the principal in such recognizance, stipu- 
 lation, bond, or undertaking resided when it was made or 
 guaranteed. 
 Neglect or re- Sec. 6. That if any such company sliall neglect or re- 
 ment or^^eoree, fuse to pay any final judgment or decree rendered against 
 ^"^ it upon any such recognizance, stipulation, bond, or un- 
 
 dertaking made or guaranteed by it under the provisions 
 of this Acty from which no appeal, writ of error, or super- 
 sedeas has been taken, for thirty days after the rendition 
 of such judgment or decree, it shall forfeit all right to do 
 business under this Act. 
 toS^'to' deny Sec. 7. That any company which shall execute or guar- 
 its corporate antee any recognizance, stipulation, bond, or undertaking 
 power, etc. un(Jer the provisions of this Act shall be estopped in any 
 proceeding to enforce the liability which it shall have 
 assumed to incur, to deny its corporate power to execute 
 or guarantee such instrument or assume such liability. 
 piJ^"^th*p?o™; Sec. 8. That any company doing business under. th& 
 siona of this act. provisions of this Act which shall fail to comply with any 
 of its provisions shall forfeit to the United States for 
 every such failure not less than five hundred dollars nor 
 more than five thousand dollars, to be recovered by suit 
 in the name of the United States in the same courts in 
 which suit may be brought against such company under 
 the provisions of this Act, and such failure shall not 
 affect the validity of any contract entered into by such 
 company. 
 
 Instructions regarding preparation of bonds executed by 
 corporate sureties. (Cir. No. 711; T. D. 1279; Int. Rev. 
 Mim. Cir. No. 562; T. D. 1382.) 
 
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PEOVISIOKS COMMON TO SEVEKAL OBJECTS OF TAXATION. &15 
 
 Execution of bonds on other forms than those furnished 
 by the Government forbidden. (T. D. 1591.) 
 
 Collectors are forbidden to exact that bonds shall be fur- 
 nished by a guarantee company or any iiiirtituliir guarantee 
 company. (T. D. 1155.) 
 
 Actual liability of surety companies on outstanding ware- 
 housmg bonds, and not the full penal sum of such bonds, 
 to be hereafter certified by collectors, and to be taken into 
 account in determining the qualification of such companies 
 to new bonds offered by the same principal. (T. D. 1316.) 
 
 Acknowledgment of bonds no longer rectuired. (T. D. 
 1370.) 
 
 Regulations applicable to surety companies doing business 
 with thf United States under the act of Aufrust 13, 1894, as 
 amended. (Dept. Circular No. 54 ; T. D. 30937.) 
 
 Limitation with reference to acceptance of surety bonds. 
 (T. D. 2141.) 
 
 Sureties on official bonds can not withdraw from such 
 bonds without the consent of the United States, and notice 
 to the appropriate department that they will be no longer 
 bound is ineffective to relieve them from liability for sub- 
 sequent defalcations of their principal. (United States v. 
 Campbell (1909), circuit court of appeals, 170 Fed., 318.) 
 
 This act requires the appointment of a process agent in the 
 district where the principal resides, and also in the district 
 where the contract is to be performed, and where the bond 
 is returnable or filed. (28 Op. Atty. Gen., 34.) 
 
 This act does not make the company becoming surety 
 upon bonds required by United States an instrumentality 
 of the Government and exempt from tax under State law. 
 (Fidelity & Deposit Co. v. Pennsylvania, 240 U. S., 319.) 
 
 Sec. 1320. [Act of Fehruart/ 2Jp^ 1919 {Jfi Stat., uS's t^ale" 
 1067) .] That wherever by the laws of the United States bonds in licu ^of 
 or regulations made pursuant thereto, any person is re- turS^ ^°^^ ' "" 
 quired to furnish any recognizance, stipulation, bond, 
 guaranty, or undertaking, hereinafter called "penal 
 bond," with surety or sureties, such person may, in lieu 
 of such surety or sureties, deposit as security with the 
 official having authority to approve such penal bond, 
 United States Liberty bonds or other bonds of the United 
 States in a sum equal at their par value to the amount 
 of such penal bond required to be furnished, together 
 with an agreement authorizing such official to collect or 
 sell such bonds so deposited in case of any default in the 
 performance of any of the conditions or stipulations of 
 such penal bond. The acceptance of such United States 
 bonds in lieu of surety or sureties required by law shall 
 have the same force and effect as individual or corporate 
 sureties, or certified checks, bank drafts, post-office money 
 orders, or cash, for the penalty or amount of such penal 
 bond. The bonds deposited hereunder, and such other 
 United States bonds as may be substituted therefor from 
 time to time as such security, may be deposited with the 
 Treasurer, or an Assistant Treasurer of the United 
 States, a Government depository, Federal Eeserve bank, 
 or member bank, which shall issue receipt therefor, de- 
 scribing such bonds so deposited. As soon as security for 
 the performance of such penal bond is no longer neces- 
 sary, such bonds so deposited, shall be returned to the de- 
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616 PROVISIONS COMMOET TO SEVERAL OBJECTS OF TAXATION'. 
 
 positor: Pro elded, That in case a person or persons sup- 
 plying a contractor witli labor or material as provided 
 by the Act of Congress, approved February 24, 1905 ('33 
 Stat., 811), entitled " An Act to amend an Act approved 
 August thirteenth eighteen hundred and ninety-four, en- 
 titled ' An Act for the protection of persons furnishing 
 materials and labor for the construction of public 
 works,' " shall file with the obligee, at any time after a 
 default in the performance of any contract subject to said 
 Acts, the application and affidavit therein pi-ovided, the 
 obligee shall not deliver to the obligor the deposited 
 bonds nor any surplus proceeds thereof until the expira- 
 tion of the time limited by said Acts for the institution 
 of suit by such person or persons, and, in case suit shall 
 be instituted within such time, shall hold said bonds or 
 proceeds subject to the order of the court having juris- 
 diction thereof: Provided further, That nothing herein 
 contained shall affect or impair the priority of the claim 
 of the United States against the bonds deposited or any 
 right or remedy granted by said Acts or by this section to 
 the United States for default upon any obligation of said 
 penal bond : Provided further, That all laws inconsistent 
 with this section are hereby so modified as to conform t'o 
 the provisions hereof: And provided further. That 
 nothing contained herein shall affect the authority of 
 courts over the security, where such bonds are taken 
 as security in judicial proceedings, or the authority of 
 any administrative officer of the United States to receive 
 United States bonds for security in cases authorized by 
 existing laws. The Secretary may prescribe rules and 
 regulations necessary and proper for carrying this sec- 
 tion into effect. 
 
 Instructions as to bond where claimant elects to offer 
 in lieu of sureties bonds of United States. (T. D. 2925.) 
 
 Fcjrm of bonds for extending date of iiayment of floor 
 taxes. (T. D. 2798.) 
 
 Stump tax on powers of attorney of persons depositing 
 Liberty bonds in lien of sureties. (T. D. 2913.) 
 
 [Extract from the urgont deficiency appropriation act for the fiscal year 
 1U09, approved August 5, 1909 (36 Stat., 118, 125).] 
 
 ^i '¥ ^ ^ ^ 
 
 f.w"'tyCTSp™ Until otherwise provided by law no bond shall be 
 Hies. accepted from any surety or bonding company for any 
 
 officer or employee of the United States which shall cost 
 more than thirty-five per centum in excess of the rate of 
 premium charged for a like bond during the calendar 
 year nineteen hundred and eight: Provided. That here- 
 after the United States shall not pay any part of the 
 premium or other cost of furnishing a bond required by 
 law or otherwise of any officer or employee of the United 
 States, 
 son""'' '^'"°™'^" That a joint commission consisting of three Senators^ 
 to be appointed by the President of the Senate, and three 
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PROVISIONS COMJION TO SEVERAL OBJECTS OF TAXATION. 617 
 
 Members of the House of Representatives, to be appointed 
 by tlie Speaker of the House of Eepresentatives, shall 
 inquire into the rates of premium heretofore and now 
 being charged, as well as those proposed to be charged, 
 by surety or bonding companies for bonds of officers or 
 employees of the United States and report to Congress by 
 bill or otherwise at its next session what regulation, if 
 any, should be exercised under law or otherwise over the 
 same. 
 
 (27 Op. Atty. Gen., 597.) 
 
 (28 Op. Atty. Gen., 28. Dept. Circular No. 58.) 
 
 Senate Report No. 1260, 61st Congress, 3d session. 
 
 On and after November 1, 1911, bonds of surety compa- 
 nies must state upon their face tlie rate of premium ctiarged. 
 (Cir. No. 60; T. D. 31005.) 
 
 OFFICIAL BOI^^DS. 
 
 [Extract from legislative, executive, and judicial appropriation act, ap- 
 proved March 2, 1S95 (28 Stat., 807.] 
 
 Sec. 5. * * * Hereafter all bonds of the Treasurer le^orfof inter'nli 
 of the United States, collectors of internal revenue, col- gfe™witii*secr''c- 
 lectors, naval officers, surveyors, and other officers of the tary of Treacury. 
 customs, either as such officers or as disbursing officers of 
 the Treasury, bonds of the Secretary of the Senate, Clerk 
 of the House of Representatives, and the Sergeant-at- 
 Arms of the House of Representatives, and all such bonds 
 now on file in the office of the Comptroller of the Treas- 
 ury, shall be transmitted to the Secretary of the Treasury 
 and filed as he may direct ; and the duties now required 
 by law of the Comptroller of the Treasury in regard to 
 such bonds, as the successor of the Commissioner of Cus- 
 toms and First Comptroller of the Treasury, shall here- 
 after be performed W the Secretary of the Treasury. 
 
 Hereafter every officer required by law to take and ap- to °be '"examined 
 prove official bonds shall cause the same to be examined ^^^^ Jf^^*^ ^^^y 
 at least once every two years for the purpose of ascertain- 
 ing the sufficiency of the sureties thereon; and every 
 officer having power to fix the amount of an official bond 
 shall examine it to ascertain the sufficiency of the amount 
 thereof and approve or fix said amount at least once in 
 two years and as much oftener as he may deem it neces- 
 sary. 
 
 Hereafter every officer whose duty it is to take and oj^^'j.y^hemd 
 approve official bonds shall cause all such bonds to be '^^'^''y ^°^ y^" 
 renewed every four years after their dates, but he may °^ ° 
 require such bonds to be renewed or strengthened oftener 
 if he deem such action necessary. In the discretion of 
 such officer the requirement of a new bond may be 
 waived, for the period of service of a bonded officer after 
 the expiration of a four-year term of service pending the 
 appointment and qualification of his successor : Provided, 
 That the nonperformance of any requirement of this sec- 
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618 PEOVISIOITS COMlIOiS- TO SEVEEAL OBJECTS OF TAXATIOK". 
 
 tion on the part of anj' official of the Government shall 
 not be held to affect in any respect the liability of prin- 
 cipal or sureties on any bond made or to be made to the 
 bimy'cover'ed"o''n United States : Provided furtJier, Tliat the liability of the 
 official bonds. principal and sureties on all official bonds shall continue 
 and cover the period of service ensuing until the appoint- 
 ment and qualification of the successor of the principal : 
 nfrrcp^aief "nor ^^<^ provided further, Tliat nothing in this section shall 
 "ij-dified. Postal be construed to repeal or modify section thirty -eight 
 feeted. "° ^ " hundred and thirty-six of the Revised Statutes of the 
 United States. 
 
 [Notice of defldency In accounts of principals to be given to sureties upon 
 bonds of United States officials, and fixing a limitation of time witnin 
 wbicli suits shall be brought against said sureties upon said bonds.] 
 
 obugoi^?"*'"" '° Sec. 1. {Act of August 8, 1888 {25 Stat. 387).] That 
 hereafter, whenever any deficiency shall be discovered in 
 the accounts of any official of the United States, or of any 
 officer disbursing or chargeable with public money, it 
 shall be the duty of the accounting officers making such 
 discovery to at once notify the head of the Department 
 having control over the affairs of said officer of the 
 nature and amount of said deficiency, and it shall be the 
 immediate duty of said head of Department to at once 
 notify all obligors upon the bond or bonds of such official 
 of the nature of such deficiency and the amount thereof. 
 Said notification shall be deemed sufficient if mailed at 
 the post-office in the city of Washington, District of 
 Columbia, addressed to said sureties respectively, and 
 directed to the respective post-offices where said obligors 
 may reside, if known ; but a failure to give or mail such 
 notice shall not discharge the surety or sureties upon 
 such bond. 
 
 yefr"'*""*''"*™ ^^^- 2- That if, upou the statement of the account of 
 any official of the United States, or of any officer disburs- 
 ing or chargeable with public money, by the accounting 
 officers of the Treasury, it shall thereby appear that he is 
 indebted to the United States, and suit therefor shall not 
 be instituted within five years after such statement of 
 said account, the sureties on his bond shall not be liable 
 for such indebtedness. 
 
 [Acts in regard to Hawaii, Porto Rico, Philippine Islands, and Virgin 
 
 Islands.] 
 
 HAWAII. 
 
 AN ACT To provide a government for tlie Territory of Hawaii. 
 (Act April 30, 1900, 31 Stat, 141.) 
 
 [Extracts.] 
 
 andTawV'o'f'the Sec. 5. That the Constitution, and except as herein 
 
 forcl'^'in^Hawaii" Otherwise provided, all the laws of the United. States 
 
 ' which are not locally inapplicable, shall have the same 
 
 force and effect within the said Territory as elsewhere in 
 
 the United States: Provided, That sections eighteen 
 
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PEOVI&IONS COilMOX TO SEVERAL OBJECTS OF TAXATION. 619 
 
 hundred and fifty and eighteen hundred and ninety of the 
 Revised Statutes of the United States shall not apply to 
 the Territory of Hawaii. 
 
 i^ ^ ¥ •!• 9f 
 
 Sec. 87. That the Territory of Hawaii shall constitute coiiecdon"'"^dis* 
 a district for the collection of the internal revenue of the '"'*''*• 
 United States, with a collector, whose office shall be at 
 Honolulu, and deputy collectors at such other places in 
 the several islands as the Secretary of the Treasury shall 
 direct. 
 
 Sec. 104.. This Act shall take effect forty-five days 
 from and after the date of the approval thereof, except- 
 ing only as to section fifty-two, relating to appropria- 
 tions, which shall take effect upon such approval. 
 
 This act took effect June 14, 1900. 
 
 Joint resolution providing for tlie annexation of Hawaii, 
 approved July 7, 1898, 30 Stat.. 750. 
 
 Laws relating to the exportation of articles free of tax, 
 or with benefit of drawback, not applicable to shipment of 
 articles to Hawaii on and after June 14, 1900. (T. D., 120.) 
 
 Forfeiture of a vessel for violation of the internal -reve- 
 nue laws. (The Kauailani, 128 Fed., 879.) 
 
 Suit to enjoin enforcement of income tax law of Hawaii. 
 (Peacock v. Pratt, 121 Fed., 772.) 
 
 PORTO RICO. 
 
 AN ACT Temporarily to provide revenues and a civil government 
 for Porto Rico, and for other purposes. (Act of Apiil 12, 1900; 
 31 Stat., 77.) 
 
 [Extracts.] 
 
 Sec. S. That on and after the passage of this Act all froSf " """'"^ 
 merchandise coming into the United States from Porto 
 Eico and coming into Porto Eico from the United States 
 shall be entered at the several ports of entry upon pay- 
 ment of fifteen per centum of the duties which are re- 
 quired to be levied, collected, and paid upon like articles 
 of merchandise imported from foreign countries ; and in 
 addition thereto upon articles of merchandise of Porto 
 Eican manufacture coming into the United States and 
 withdrawn for consumption or sale upon payment of a 
 tax equal to the internal-revenue tax imposed in the 
 United States upon the like articles of merchandise of 
 domestic manufacture ; such tax to b& paid by internal- 
 revenue stamp or stamps to be purchased and provided 
 by the Commissioner of Internal Eevenue and to be pro- 
 cured from the collector of internal revenue at or most 
 convenient to the port of entry of said merchandise in 
 the United States, and to be affixed under such regula- 
 tions as the Commissioner of Internal Eevenue, with the 
 approval of the Secretary of the Treasury, shall pre- 
 scribe. 
 
 ***** 
 
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620 PROVISIONS COMMON TO SEVBKAL OBJECTS OF TAXATION. 
 
 Internal - reve- 
 nue laws not ap 
 
 Sec. 14. That the statutory laws of the United States 
 ijiicabie. "" "'' not locally inapplicable, except as hereinbefore or herein- 
 after otherwise provided, shall have the same force and 
 effect in Porto Rico as in the United States, except the 
 internal-revenue laws, which, in view of the provisions of 
 section three, shall not have force and effect in Porto 
 Eico. 
 
 Sec. 41. That this Act shall take effect and be in force 
 from and after the first day of May, nineteen hundred. 
 
 The organic act of Porto Rico, called " The Foraker Act." 
 (Circular No. 59; T. D. 22198.) 
 
 War witU Spain declared (act of April 25, 1898; 30 Stat, 
 304). 
 
 Treaty of Paris ceding Porto Rico to the United States 
 ratified and proclaimed April 11, 1899. Circular No. 57. 
 (T. D. 21006; T. D. 23501.) 
 
 The act of April 12, 1900, called " The Foraker Act " con- 
 stitutional. (Downes r. Bidwell, 182 V. S., 244.) 
 
 Abolition of duties. Proclamation of the President under 
 section 3. (July 25, 1901; T. D. 23202.) 
 
 Circular No. 606 relative to collection of internal-revenue 
 tax in Porto Rico. (July 26, 1901; T. D. 387; Clr. No. 
 607; T. D. 407.) 
 
 No permit required for release of properly stamped arti- 
 cles arriving from Porto Rico. (T. D. 413.) 
 
 Collection of internal-revenue tax upon articles of mei-- 
 chandise coming from Porto Rico. (Cir. No. 693, T. D. 
 1130.) 
 
 Importation of Porto Rican products (24 Op. Atty. Gen., 
 5.J, 012). 
 
 In De Lima r. Bidwell, 182 U. S., 1, Porto Rico was held 
 not to be a foreign country after the cession, and that a prior 
 act exclusively applicable to foreign countries became inap- 
 plicable. (Fourteen Diamond Rings v. United States, 183 
 U. S., 181.) 
 
 Since April 11, 1899, Porto Rico has been de facto and 
 dp jure .Vmerican territory. (Ponce r. Roman Cath. Church, 
 210 U. S., 296.) 
 
 AN ACT To provide means for the sale of internal-revenue stamps 
 in the island of I'orto Rico, approved June 2'J, 1906. (34 Stat., 
 620.) 
 
 tor°'nPo^rto°Eico; That all United States internal-revenue taxes now im- 
 posed by law on articles of Porto Eican manufacture 
 coming into the United States for consumption or sale 
 may hereafter be paid by affixing to such articles before 
 shipment thereof a proper United States internal-revenue 
 stamp denoting such payment, and for the purpose of 
 carrying into effect the provisions of this Act the Secre- 
 tary of the Treasury is authorized to grant to such col- 
 lector of internal revenue as may be recommended by the 
 Commissioner of Internal Eevenue, and approved by the 
 Secretary, an allowance for the salary and expenses of a 
 deputy-collector of internal revenue, to be stationed at 
 San Juan, Porto Eico, and the appointment of this 
 deputy to be approved by the Secretary, 
 stamps. rpj^g collector will place in the hands of such deputy all 
 
 stamps necessary for the payment of the proper tax on 
 articles P^^^£|^ j^^/v^c^^oflgjico and shipped to the 
 
PEOVISIONS COJIMON TO SEVEEAL OBJECTS OF TAXATION. 
 
 621 
 
 Compensation. 
 
 Bond. 
 
 United States, and the said deputy, upon proper pay- 
 ment made for said stamps, shall issue them to manu- 
 facturers in Porto Rico. All such sta'mps so issued or 
 transferred to said deputy collector shall be charged to 
 the collector and be accounted for by him as in the case of 
 other tax-paid stamps. 
 
 The deputy collector assigned to this duty shall per- j^^^^p"*^ "**'" 
 form such other work in connection with the inspection 
 and stamping of such articles, and shall make such re- ''«*"'''"■ 
 turns as the Commissioner of Internal Revenue may, by 
 regulations approved by the Secretary of the Treasury, 
 direct, and all provisions of existing law relative to the 
 appointment, duties, and compensation of deputy col- 
 lectors of internal revenue, including office rent and other 
 necessary expenses, shall, so far as applicable, apply to 
 the deputy collector of internal revenue assigned to duty 
 under the provisions of this Act. 
 
 Sec. 2. That before entering upon the duties of his 
 office such deputy collector shall execute a bond, payable 
 to the collector of internal revenue appointing him, in 
 such amount and with such sureties as he may determine. 
 
 Sale of internal-revenue stamps in Porto Rico (Cir. Xo. 
 G79; T. D. 1031). 
 
 Cigars of Porto Kicau manufacture brought to the United 
 States are subject to internal-revenue tax and must have 
 affixed thereto the same stamps as required for domestic 
 cigars. (Dept. circulars 54, 56, 81, 85.) 
 
 "An act to Impose a tax on alcoholic compounds coming 
 from Porto Rico, and for other purposes," approved Febru- 
 ary 4, 1909. (Circular No. 734; T. D. 1462.) 
 
 Words " alcoholic compounds " to be omitted from tax- 
 paid stamps for alcohol and other uncompounded spirits 
 brought from Porto Rico. (T. D. 1481.) 
 
 Denatured alcohol from Porto Rico. (T. D. 1410; T. D. 
 14.50.) 
 
 Regulations relative to taxable articles brought from 
 Porto Rico. (Int. Rev. Cir. 565; T. D. 109; Int. Rev. Cir. 
 566 ; T. D. 110 ; Int. Rev. Cir. 678 ; T. D. 10.31 ; Int. Rev. Cir. 
 693; T. D. 1130.) 
 
 Alcohol brought to the United States from Porto Rico 
 may be removed free of tax for denaturation. ( T. D. 2.j75. ) 
 
 Sec. IV. IParagraph D, act of Ootoler 3, 1913 ('?Sg„f„|'i^to Porto 
 Stat., 192).'] That articles, goods, wares, or merchandise Rico from united 
 going into Porto Rico from the United States shall be 
 exempted from the payment of any tax imposed by the 
 internal-revenue laws of the United States. 
 
 Act providing for allowance of dravs'back on articles 
 shipped to Porto Rico, page 625. » 
 
 AN ACT To provide a civil government for Porto Rico, and for 
 other purposes. Approved JIarch 2, 1917 (39 Stat., 954). 
 
 [Extract] 
 
 Sec. 9. That the statutory laws of the United States 
 not locally inapplicable, except as hereinbefore or herein- 
 after otherwise provi^d^|h^j^ h^B^the^^e force and 
 
622 PR0Visi03srs common to several, objects of taxation. 
 
 effect in Porto Eico as in the United States, except the 
 internal-revenue laws: Provided, however, That here- 
 after all taxes collected under the internal-revenue laws 
 of the United States on articles produced in Porto Rico 
 and transported to the United States or consumed in the 
 island shall be covered into the treasury of Porto Rico. 
 
 Collections on Porto Rican products. Instructions rela- 
 tive to internal-revenue collections on Porto Bican products 
 under the act of March 2, 1917, entitled "An act to provide 
 a civil government for Porto Rico, and for other purposes." 
 (T. D. 2.482.) 
 
 Existing laws in regard to Porto Rico continued in force. 
 Section 58» act of March 2, 1917. 
 
 PHILIPPINE ISLANDS. 
 
 AN ACT Temporarily to provide revenue for the Philippine 
 Islands, and for other purposes. Approved March 8, 1902 (32 
 Stat., 54). 
 
 [Extract.] 
 
 :J; ^ :J; ^ ^ 
 
 thfpSiUppfneb- Sec. 6. That all articles manufactured in bonded 
 lands. manufacturing warehouses in whole or in part of im- 
 
 ported materials, or of materials subject to internal- 
 revenue tax and intended for shipment from the United 
 States to the Philippine Islands, shall, when so shipped, 
 under such regulations as the Secretary of the Treasury 
 may prescribe, be exempt from internal-revenue tax, and 
 shall not be charged with duty except the du^ levied 
 under this Act upon imports into the Philippine Islands. 
 That all articles subject under the laws of the United 
 States to internal-revenue tax, or on which the internal- 
 revenue tax haS| been paid, and which may under existing 
 laws and regulations be exported to a foreign country 
 
 Drawback. without the payment of such tax, or with benefit of draw- 
 back, as the case may be, may also be shipped to the 
 Philippine Islands with like privilege, under such regula- 
 tions and the filing of such bonds, bills of lading, and 
 other security as the Commissioner of Internal Revenue 
 may, with the approval of the Secretary of the Treasury, 
 
 Refund oi tex. pj-gg^ribe. And all taxes paid upon such articles shipped 
 to the Philippine Islands since November fifteenth, nine- 
 teen hundred and one, under the decision of the Secretary 
 of the Treasury of that date, shall be refunded to the 
 parties who have paid the same, under such rules and 
 regulations as the Secretary of the Treasury may pre- 
 scribe, and a sum sufficient to make such payment is 
 hereby appropriated, out of any money in the Treasury 
 not otherwise appropriated. 
 
 Drawback. That where materials on which duties have been paid 
 
 are used in the manufacture of articles manufactured or 
 produced in the United States, there shall be allowed on 
 the shipment of said articles to the Philippine Archi- 
 pelago a drawback equal in amount to the duties paid 
 on the ina^^^|^y^d,yjj^^^QgQ^(ger centum of such duties, 
 
PEOVISIONS COMMON TO SEVEEAI, OBJECTS 0¥ TAXATIOK. 623j 
 
 imder sucli rules and regulations as the Secretary of tlie 
 Treasury may prescribe. 
 
 - * * * * * 
 
 Shipments to the Philippine Islands of articles subject to 
 internal-revenue tax. (Regulations No. 29, rev.) (T. Ds. 
 484, 491, 23586.) 
 
 Rules and regulations for the refunding of internal- 
 revenue taxes paid upon articles shipped to the Philippine 
 Islands since November 15, 1901. (Cir. No. 62&; T. D. 542.) 
 
 Tret-ty of peace ratified and proclaimed April 11, 1899. 
 (T. D. 21006; Cir. No. 57; T. D. 23501.) 
 
 Pepke V. United States (183 U. S., 176). Case known 
 as- tlie "Fourteen Diamond Rings Case," involving the con- 
 stitutionality of the imposition of customs duties upon 
 merchandise brou^t into the United States from the 
 Philippines after the treaty of peace took effect. PhxHp- 
 pines not a foreign country after its cession. The effect 
 of this decision was to give the Philippines the same status 
 that Porto Rico had before the FoEaker Act was passed. 
 
 The President authorized to establish temporary civil 
 government in the Philippine Islands. (Act of March 2, 
 1901; 31 Stat., 910.) 
 
 An act temporarily to provide for the administration of 
 the affairs of civil government in the Philippine Islands, and 
 for other purposes. (Act of July 1, 1902; 32 Stat, 691). 
 
 All articles the growth and product of the Philippine 
 Islands coming directly from said islands to the United 
 States or any of its possessions for use and consumption 
 therein, shall be exempt from any export duties imposed 
 in the Philippine Islands. (Act to raise revenue for the 
 Philippine Islands and for othei' purposes. Act of August 
 5, 1909; 36 Stat., 174; superseded by act of October 3, 
 1913; 38 Stat, 192.) 
 
 Funds derived from the sale of internal-revenue stamps 
 in the Philippine Islands belong to the Philippine govern- 
 ment under the provisions of section 4 of the act of March 
 8, 1902. (32 Stat., 54.) (28 Op. Atty. Gen., 70.) 
 
 Sec. IY. [Par. C, act October 3, 1913 {38 Stat. 192). -l 
 
 And provided, That there shall be levied, collected, and internal -""evLie 
 paid, in the United States, upon articles, goods, wares, or tax^ ° piiiu''°[n| 
 merchandise coming into the United States from the leiMds. ' ^^^'™ 
 Philippine Islands, a tax equal to the internal-revenue 
 tax imposed in the United States upon, the like articles, 
 goods, wares, or merchandise of domestic manufacture; 
 such tax to be paid by internal-revenue stamp or stamps, 
 to be provided by the Commissioner of Internal Reve- 
 nue, -and to be afExed in such manner and under such 
 regulations as he, with the approval of the Secretary of 
 the Treasury, shall prescribe; and such articles, goods, 
 wares, or merchandise, shipped from said islands to the 
 United States, shall be exempt from the payment of any phiupp'ine'^i™ 
 tax imposed by the internal-revenue laws of the Philip- lands tax. 
 pine Islands : 
 
 And provided further. That there shall be levied, col- 
 lected, and paid in the Philippine Islands, upon articles, 
 goods, wares, or merchandise going into the. Philippine fro^'^ °u n™u°e d 
 IsUwids from the United States, a tax equal to the inter- p^ne'isund^s''"'^' 
 mal-revenue tax imposed in the Philippine Islands upon 
 
 the like articles, goods,, wfires,, or merchaiidise of Phil- 
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624 PROVISIONS COMMON TO SEVERAL OBJECTS OF TAXATION. 
 
 ippine Islands manufacture ; such tax to be paid by in- 
 ternal-revenue stamps or otherwise, as provided by the 
 laws in the Philippine Islands ; and such articles, goods, 
 wares, or merchandise going into the Philippine Islands 
 Unite" s*t JtTs ^''om the United States shall be exempt from the pay- 
 tax, ment of any tax imposed by the internal-revenue laws of 
 
 the United States: 
 ons^othe" thTn ^^^ fTovklecl further, That in addition to the customs 
 ?rom VnTi t e*3 taxes imposed in the Philippine Islands, there shall be 
 states. levied, collected, and paid therein upon articles, goods, 
 
 wares, or merchandise imported into the Philippine 
 Islands from countries other than the United States, the 
 internal-revenue tax imposed by the Philippine Govern- 
 ment on like articles manufactured and consumed in the 
 Philippine Islands or shipped thereto for consumption 
 therein, from the United States : 
 Tme"*to"be 'plid ^^"^ fvovided fwrthev, That from and after the pas- 
 irto insular sage of this act all internal revenues collected in or for 
 treasuiy. account of the Philippine Islands shall accrue intact to 
 
 the general government thereof and be paid into the in- 
 sular treasury: 
 
 This act is a reenactment ^vith amenclments of section 5, 
 act of August 5, 1909. (36 Stat, 83.) 
 
 Cigars and cigarettes brought into the United States 
 from the Philippine Islands subject to internal-revenue tax 
 under section 5 of the act of August 5, 1909 (36 Stat., 83), 
 and internal-revenue stamps are required to be affixed. 
 (29 Op. Atty. Gen., 77.) 
 
 Regulations concerning articles subject to internal-reve- 
 nue tax coming into the United States from the Philippine 
 Islands. No. 8, revised July 1, 1910, page 68. (T. D. 1531, 
 modified by T. D. 1567.) 
 
 Regulations under section 5, act of August 5, 1909. Cir- 
 cular No. 37. (T. D. 29944.) 
 
 Articles shipped from the Philippine Islands. (T. D. 
 1569.) 
 
 Shipments to and from Philippine Islands. Circular No. 
 39. (T. D. 30744.) 
 
 For act allowing drawbaclv on articles shipped to Philip- 
 pine Islands, see page 625. 
 
 Shipments of taxable articles to the Philippines are pro- 
 vided for in Regulations No. 29, revised. 
 
 AN ACT To declare the purpose of the people of the United States 
 as to the future political status of the people of the Philippine 
 Islands, and to provide a more autonomous government for 
 those islands. (Approved, August 29, 1916; 39 Stat., 545.) 
 
 [Extracts.] 
 
 ***** 
 
 Sec. 5. That the statutory laws of the United States 
 hereafter enacted shall not apply to the Philippine 
 Islands, except when they specifically so provide, or it is 
 
 so provided in this act. 
 
 ***** 
 
 Sec. 11. That no export duties shall be levied or col-^ 
 lected on exports from the Philippine Islands, but taxes 
 and asses^e^t|g^^^^ggj|g^d license fees for fran- 
 
PROVISIONS COMMON TO SEVEKAX, OBJECTS OF TAXATION. 625 
 
 chises, and privileges, and internal taxes, direct or indi- 
 rect, may be imposed for the purposes of the Philippine 
 Government and the provincial and municipal govern- 
 ments thereof, respectively, as may be provided and de- 
 fined by acts of the Philippine Legislature. * * * 
 
 DRAWBACK OI^' ARTICLES SHIPPED TO POKTO RICO AND PHILIP- 
 PINE ISLANDS. 
 
 AN ACT To provide for the allowance of drawback of tax on 
 articles shipped to the island of Porto Rico or to the Philippine 
 Islands. (Approved March 4, 1915; 38 Stat., 1189.) 
 
 Be it enacted^ etc., That all provisions of existing laws 
 forthe allowance of drawback of internal-revenue tax on 
 articles exported from the United States are, so far as 
 applicable, hereby extended to like articles upon which 
 an internal-revenue tax has been paid when shipped from 
 the United States to the island of Porto Eico or to the 
 Philippine Islands. 
 
 ISLANDS ACQUIRED FROM DENMARK. 
 
 AN ACT To provide a temporary government for the West Indian 
 Islands acquired by the United States from Denmark by the con- 
 vention entered into between said countries on August 4, 1916, 
 and ratified by the Senate of the United States on September 7, 
 1916. (Approved March 3, 1917; 39 Stat., 1132.) 
 
 [Extracts.] 
 
 •I* ■?• "P -P ¥ 
 
 Sec. 3. That on and after the passage of this act there ■ec?'''to'^re^ar 
 shall be levied, collected, and paid upon all articles com- duties. 
 ing into the United States or its possessions, from the 
 West Indian Islands ceded to the United States by Den- 
 mark, the rates of duty and internal-revenue taxes which 
 are required to be levied, collected, and paid upon like 
 articles imported from foreign countries : Provided, That 
 all articles, the growth or product of, or manufactured in 
 such islands from materials the growth or product of such 
 islands or of the United States, or of both, or which do 
 not contain foreign materials to the value of more than 
 twenty per centum of their total value, upon which no 
 drawback of customs duties has been allowed therein, 
 coming into the United States from such islands shall 
 hereafter be admitted free of duty. 
 
 Sec. 4. That until Congress shall otherwise provide all comprub™* J"" 
 laws now imposing taxes in the said West Indian Islands, tinue in force, 
 including the customs laws and regulations, shall, in so 
 far as compatible with the changed sovereignty and not 
 otherwise herein provided, continue in force and effect, 
 except that articles the growth, product, or manufacture 
 of the United States shall be admitted there free of duty : 
 Provided, That upon exportation of sugar to any foreign 
 country, or the shipment thereof to the United States or 
 140184°— 20 40 Digitized by Microsoft® 
 
 ■COtir 
 
626 PROVISIOKS COMMOZSr TO SEVEEAIi OBJECTS OP TAXATIOIST. 
 
 any of its possessions, there shall be levied, collected, and 
 paid thereon an export duty of $8 per ton of two thousand 
 pounds irrespective of polariscope test, in lieu of any 
 export tax now required by law. 
 
 to^bT%?ed''°fOT ^^^.' ^' '^^^*' t^® duties and taxes collected in pursuance 
 
 beneat of the of this act shall not be covered into the general fund of 
 
 islands. t2^g Treasury of the United States, but shall be used and 
 
 expended for the government and benefit of said islands 
 
 under such rules and regulations as the President may 
 
 prescribe. 
 
 ***** 
 
 Duties and taxes in re islands purchased from Denmark. 
 (23 Compt. Dec, 574.) 
 
 Time of taking effect of act of March 3, 1917, upon pay- 
 ment of $25,000,000 to be made public by proclamation of 
 President. (See proclamation of March 31, 1917; T. D. 
 37095.) 
 
 ^, Tax upon arti- Sec. 1304. [Act of Febmary 2^, 1919 {kO Stat, 1057).] 
 gin Islands. That there shall be levied, collected, and paid in the 
 United States, upon articles coming into the United 
 States from the Virgin Islands, a tax equal to the inter- 
 nal-revenue tax imposed in the United States upon like 
 articles of domestic manufacture; such articles shipped 
 from such islands to the United States shall be exempt 
 from the payment of any tax imposed by the internal- 
 revenue laws of such islands : Provided, That there shall 
 Articles _ going ]-,q levied, coUccted, and paid in such islands, upon articles 
 lands fronf United imported from the United States, a tax equal to the in- 
 states, ternal-revenue tax imposed in such islands upon like 
 articles there manufactured ; and such articles going into 
 such islands from the United States shall be exempt from 
 payment of any tax imposed by the internal-revenue laws 
 of the United States. 
 
 Provisions of act of February 24, 1919 (40 Stat., 1057), of general 
 application. 
 
 Definitions. TITLE I.— GEISTEKAL DEFINITIONS. 
 
 Section 1. That when used in this Act — 
 
 The term " person " includes partnerships and corpora- 
 tions, as well as individuals; 
 
 The term " corporation " includes associations, joint- 
 stock companies, and insurance companies ; 
 
 The term " domestic " when applied to a corporation or 
 partnership means created or organized in the United 
 States ; 
 
 The term " foreign " when applied to a corporation or 
 partnership means created or organized outside of the 
 United States; 
 
 The term " United States " when used in a geographical 
 sense includes only the Sta,tes, the Territories of Alaska 
 and Hawaii, and the District of Columbia ; 
 
 The term " Secretary " means the Secretary of the 
 Treasury ; 
 
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PROVISIONS COMMON TO SEVERAL OBJECTS OF TAXATION. 627 
 
 The term " Commissioner " means the Commissioner of 
 Internal Revenue; 
 
 The term " collector " means collector of internal rev- 
 enue; 
 
 The term " Revenue Act of 1916 " means the Act en- 
 titled "An Act to increase the revenue, and for other pur- 
 poses," approved September 8, 1916 ; 
 
 The term " Revenue Act of 1917 " means the Act en- 
 titled "An Act to provide revenue to defray war expenses, 
 and for other purposes," approved October 3, 1917 ; 
 
 The term taxpayer" includes any person, trust or 
 estate subject to a tax imposed by this Act; 
 
 The term "Government contract" means (a) a con- 
 tract made with the United States, or with any depart- 
 ment, bureau, officer, commission, board, or agency, under 
 the IJnited States and acting in its behalf, or with any 
 agency controlled by any of the above if the contract is 
 for the benefit of the United States, or (b) a subcontract 
 made with a contractor performing such a contract; if the 
 products or services to be furnished under the subcontract 
 are for the benefit of the United States. The term " Gov- 
 ernment contract or contracts made between April 6, 
 1917, and November 11, 1918, both dates inclusive " when 
 applied to a contract of the kind referred to in clause (a) 
 of this paragraph, includes all such contracts which, 
 although entered into during such period, were originally 
 not enforceable, but which have been or may become en- 
 forceable by reason of subsequent validation in pursuance 
 of law ; 
 
 The term " military or naval forces of the United 
 States " includes the Marine Corps, the Coast Guard, the 
 Army Nurse Corps, Female, and the Navy Nurse Corps, 
 Female, but this snail not be deemed to exclude other 
 units otherwise included within such term ; 
 
 The term " present war " means the war in which the 
 United States is now engaged against the German Gov- 
 ernment. 
 
 For the purposes of this Act the date of the termina- 
 nation of the present war shall be fixed by proclamation 
 of the President. 
 
 Article 1506, Regulations No. 45, headed " Limited part- 
 nership as corporation," amended. (T. D. 2943.) 
 
 Sec. 1305. That all administrative, special, or stamp ^.cu'^e cTr d s' 
 provisions of law, including the law relating to the as- statements, and 
 sessment of taxes, so far as applicable, are hereby ex-tfons™^' "^"'''" 
 tended to and made a part of this Act, and every person 
 liable to any tax imposed by this Act, or for the collec- 
 tion thereof, shall keep such records and render, under 
 oath, such statements and returns, and shall comply with 
 such regulations as the Commissioner, with the approval 
 of the Secretary, may from time to time prescribe. 
 
 Whenever in the judgment of the Commissioner neces- ticf'^'fi-om °com- 
 sary he may require any person, by notice served upon m'ssioner. 
 Digitized by Microsoft® 
 
628 PEOVISIONS COMMON TO SEVEKAL, OBJECTS OF TAXATION. 
 
 him, to make a return or such statements as he deems 
 sufficient to show whether or not such person is liable to 
 tax. 
 booS"'e'™"°t"ak- The Commissioner, for the purpose of ascertaining the 
 ing testimony, correctuess of any return or for the purpose of making a 
 return where none has been made, is hereby authorized, 
 by any revenue agent or inspector designated by him for 
 that purpose, to examine any books, papers, records or 
 memoranda bearing upon the matters required to be in- 
 cluded in the return, and may require the attendance of 
 the person rendering the return or of any officer or em- 
 ployee of such person, or the attendance of any other per- 
 son having knowledge in the premises, and may take his 
 testimony with reference to the matter required by law to 
 be included in such return, with power to administer 
 oaths to such person or persons. 
 ret^urVsTtimeto ^Ec. 1306. That whcre floor taxes are imposed by this 
 payment ; exten- Act lu rcspect to articlcs or couimodities, in respect to 
 ime. -^rhich the tax imposed by existing law has been paid, the 
 person required by this Act to pay the tax shall, within 
 thirty days after its passage, make return under oath 
 in such form and under such regulations as the Commis- 
 sioner, with the approval of the Secretary, shall pre- 
 scribe. Payment of the tax shown to be due may be ex- 
 tended to a date not exceeding seven months from the pas- 
 sage of this Act, upon the filing of a bond for payment in 
 such form and amount and with such sureties as the 
 Commissioner, with the approval of the Secretary, may 
 prescribe. 
 in^t°ax'es ■ stamp Sec. 1307. That in all cases where the method of col- 
 taxes, lecting the tax imposed by this Act is not specifically pro- 
 vided in this Actj the tax shall be collected in such man- 
 ner as the Commissioner, with the approval of the Secre- 
 tary, may prescribe. AH administrative and penalty 
 provisions of Title XI of this Act, in so far as appli- 
 cable, shall apply to the collection of any tax which the 
 Commissioner determines or prescribes shall be paid by 
 stamp. 
 couecJ^^accS ^Ec. 1308. (a) That any person required under Titles 
 for and pay over V, "VI, VII, VIII, IX, X, or XII, to pav, or to collect, 
 
 tax or to make ' x j ' i ' j. ^ ' • i l i 
 
 return or supply accouut tor and pay over any tax, or required by law or 
 information. regulations made under authority thereof to make a re- 
 turn or supply any information for the purposes of the 
 computation, assessment or collection of any such tax, 
 who fails to pay, collect, or truly account for and pay 
 over any such tax, make any such return or supply any 
 such information at the time or times required by law 
 or regulation shall in addition to other penalties pro- 
 vided by law be subject to a penalty of not more than 
 $1,000. 
 
 (b) Any person who willfully refuses to pay, collect, 
 or truly account for and pay over any such tax, make 
 
 Digitized by Microsoft® 
 
PROVISIONS COMMON TO SEVERAL OBJECTS OF TAXATION". 629 
 
 such return or supply such information at the time or 
 times required by law or regulation, or who willfully at- 
 tempts in any manner to evade such tax shall be guilty 
 of a misdemeanor and in addition to other penalties pro- 
 vided by law shall be fined not more than $10,000 or im- 
 prisoned for not more than one year, or both, together 
 with the costs of prosecution. 
 
 (c) Any person who willfully refuses to pay, collect, 
 or truly account for and pay over any such tax shall in 
 addition to other penalties provided by law be liable to a 
 penalty of the amount of the tax evaded, or not paid, 
 collected, or accounted for and paid over, to be assessed 
 and collected in the same manner as taxes are assessed and 
 collected: Provided^ however, That no penalty shall be 
 assessed under this subdivision for any offense for which 
 a penalty may be assessed under authority of section 3176 
 of the Eevised Statutes, as amended, or of section 605 or 
 620 of this Act, or for any offense for which a penalty 
 has been recovered under section 3256 of the Eevised 
 Statutes. 
 
 (d) The term "person" as used in this section in- 
 cludes an officer or employee of a corporation or a mem- 
 ber or employee of a partnership, who as such officer, 
 employee, or member is under a duty to perform the act 
 in respect of which the violation occurs. 
 
 Sec. 1309. That the Commissioner, with the approval „i^J'„'^ ^""^ ^^^ 
 of the Secretary, is hereby authorized to make all needful " ^ '°'"' 
 rules and regulations for the enforcement of the pro- 
 visions of this Act. 
 
 The Commissioner with such approval may by regula- certein*??toiis!° 
 tion provide that any return required by Titles V, VI, 
 VII, VIII, IX, or X to be under oath may, if the amount 
 of the tax covered thereby is not in excess of $10, be 
 signed or acknowledged before two witnesses instead of 
 under oath. 
 
 Sec. 1310. (a) That in the case of any overpayment or payme^'sOTovCTl 
 overcollection of any tax imposed by section 628 or 630 collections. 
 or by Title V, Title VIII, or Title IX, the person making 
 such overpayment or overcollection may take credit there- 
 for against taxes due upon any monthly return, and shall 
 make refund of any excessive amount collected by him 
 upon proper application by the person entitled thereto. 
 
 (b) Wherever in this Act a tax is required to be paid ^ Payment of 
 by the purchaser to the vendor at the time of a sale, and credit. 
 such sale is made on credit, then, under regulations pre- 
 scribed by the Commissioner with the approval of the 
 Secretary, the tax may, at the option of the vendor, be 
 returned and paid by him to the United States as if 
 paid to him by the purchaser at the time of the sale, 
 and in such case the vendor shall have a right of action 
 in any court of competent jurisdiction against the pur- 
 chaser for the amount of the tax so returned and paid 
 to the United States. 
 
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630 PROVISIONS OOMMOK TO SEVERAL OBJECTS OF TAXATIOIT. 
 
 cie^^soid oTieas'ed (^) Under such rules and regulations as the Coimnis- 
 for export ; re- sioner with the approval of the Secretary may prescribe, 
 '""^^' the taxes imposed under the provisions of Titles VI, VII 
 
 or IX shall not apply in respect to articles sold or leased 
 for export and in due course so exported. Under such 
 rules and regulations the amount of any internal-revenue 
 tax erroneously or illegally collected in respect to ex- 
 ported articles may be refunded to the exporter of the 
 article, instead of to the manufacturer, if the manufac- 
 turer waives any claim for the amount so to be refunded. 
 stam^°' '^'^"""^ Sec. 1311. That where the rate of tax imposed by this 
 Act, payable by stamps, is an increase over previously 
 existing rates, stamps on hand in the collectors' offices 
 and in the Bureau of Internal Revenue may be continued 
 to be used until the supply on hand is exhausted, but 
 shall be sold and accounted for at the rates provided by 
 this Act, and assessment shall be made against manu- 
 facturers and other taxpayers having such, stamps on 
 hand on the day this Act takes effect for the difference 
 between the amount paid for such stamps and the tax 
 due at the rates provided by this Act. 
 taxet ''by vendee Sec. 1312. (1) That (a) if any person has prior to 
 or lessee in cer- May 9, 1917, made a bona fide contract with a dealer for 
 am cases. ^j^^ ^^^q qj- leEtse, after the tax takes effect, of any article 
 in respect to which a tax is imposed under Title VI, VII, 
 or IX, or under subdivision 13 of Schedule A of Title XI, 
 or under this subdivision, and (b) if such contract does 
 not permit the adding of the whole of such tax to the 
 amount to be paid under such contract, then the vendee 
 or lessee shall, in lieu of the vendor or lessor, pay so 
 much of such tax as is not so permitted to be added to 
 the contract price. If a contract of the character above 
 described was made with any person other than a dealer, 
 the tax collected under this Act shall be the tax in force 
 on May 9, 1917. 
 s^™«- (2) If (a) any person has prior to September 3, 1918, 
 
 made a bona fide contract with a dealer for the sale or 
 lease, after the tax takes effect, of any article in respect 
 to which a tax is imposed under Title VI, VII, or IX, 
 or under subdivision 13 of Schedule A of Title XI, or 
 under this subdivision, and in respect to which no cor- 
 responding tax was imposed by the Eevenue Act of 1917, 
 and (b) such contract does not permit the adding, to 
 the amount to be paid under such contract, of the whole 
 of the tax imposed by this Act, then the vendee or lessee 
 shall, in lieu of the vendor or lessor, pay so much of the tax 
 imposed by this Act as is not. so permitted to be added 
 to the contract price. If a contract of the character 
 above described was made with any person other than a 
 dealer, no tax shall be collected under this Act. 
 sa"«- (3) If (a) any person has prior to September 3, 1918, 
 
 made a bona fide contract with a dealer for the sale or 
 lease, after the tax takes effect, of any article in respect 
 to which fey^Jg, l^WMsft]f^^ Title VI, VII, or IX, 
 
PROVISIONS COMMON TO SEVERAL OBJECTS OE TAXATION. 631 
 
 or under subdivision 13 of Schedule A of Title XI, or 
 under this subdivision, and in respect to which a corre- 
 sponding tax was imposed by the Eevenue Act of 1917, 
 and (b) such contract does not permit the adding, to 
 the amount to be paid under such contract, of the whole 
 of the difference between such tax and the corresponding 
 tax imposed by the Eevenue Act of 1917, then the vendee 
 or lessee shall, in lieu of the vendor or lessor, pay so much 
 of such difference as is not so permitted to be added to 
 the contract price. If a contract of the character above 
 described was made with any person other than a dealer, 
 the tax collected under this Act shall be the tax in force 
 on September 3, 1918. 
 
 (4) Tlie taxes payable by the vendee or lessee under pjr' ' *° '"'°'" 
 this section shall be paid to the vendor or lessor at the 
 
 time the sale or lease is consummated, and collected, re- 
 turned, and paid to the United States by such vendor or 
 lessor in the same manner as provided in section 602. 
 
 (5) The term " dealer " as used ia this section includes cr """Ifl'ned.''^^' 
 a vendee who purchases any article with intent to use it 
 
 in the manufacture or production of another article in- 
 tended for sale. 
 
 (6) This section shall not apply to any tax imposed tio^^"^'' • ''™^''' 
 by section 906. 
 
 Sec. 1313. That in the payment of any tax under this ot'^'cfnT^af^e- 
 Act not payable by stamp a fi-actional part of a cent eai'dea. 
 shall be disregarded unless it amounts to one-half cent or 
 more, in which case it shall be increased to 1 cent. 
 
 Sec. 1314. That collectors may receive, at par with an i^debteUnesf and 
 adjustment for accrued interest, certificates of indebted- uncertMed checks 
 ness issued by the United States and uncertified checks ment\t'^ certam 
 in payment of income, war-profits and excess-profits taxes t"™"*- 
 and any other taxes payable other than by stamp, dur- 
 ing such time and under such regulations as the Commis- 
 sioner, with the approval of the Secretary, shall pre- 
 scribe ; but if a check so received is not paid hj the bank 
 on which it is drawn the person by whom such check 
 has been tendered shall remain liable for the payment of 
 the tax and for all legal penalties and additions the same 
 as if such check had not been tendered. 
 
 Articles 1731 and 1732, Regulations No. 45, relative to 
 acceptance of Treasury certificates of indebtedness, sup- 
 plemented. (T. Ds. 2907, 2918.) T. Ds. 2907, 2918 super- 
 seded. (T. D. 2973.) 
 
 Sec. 1818. That if any person is summoned under this Jurisdiction of 
 
 , , , , J J. • jiZ. i nil ' district courts ; 
 
 Act to appear, to testify, or to produce books, papers or compelling a t - 
 other data, the district court of the United States for ^Iss" of proS'"- 
 the district in which such person resides shall have juris- «°n^ ofwrits"''^' 
 diction by appropriate process to compel such attendance, 
 testimony, or production of books, papers, or other data. 
 The district courts of the United States, at the instance 
 of the United States are hereby invested with such juris- 
 diction to make and issue, both in actions at law and 
 -suits in equity, writs g^^^a^^Bl^^ll/^iM^^^' ^^*^ °* "^ 
 
632 PROVISIONS COMMON TO SEVERAL OBJECTS OF TAXATION. 
 
 exeat lepublica, orders appointing receivers, and such' 
 other orders and process, and to render such judgments 
 and decrees, granting in proper cases both legal and 
 equitable relief together, as may be necessary or appro- 
 priate for the enforcement of the provisions of this Act. 
 The remedies hereby provided are in addition to and not 
 exclusive of any and all other remedies of the United 
 States in such courts or otherwise to enforce such pro- 
 visions. 
 ments^\l \o *tL' Sec. 1319. That whoever in connection with the sale 
 ™it?,T„"i'„°="^r or lease, or offer for sale or lease, of any article, or for the 
 
 Willi b a 1 c o or -"p ^, ' •/ J 
 
 leases. purpose 01 maKing such sale or lease, makes any state- 
 
 ment, written or oral, (1) intended or calculated to lead 
 any person to believe that any part of the price at which 
 such article is sold or leased, or offered for sale or lease, 
 consists of a tax imposed under the authority of the 
 United States, or (2) ascribing a particular part of such 
 price to a tax imposed under the authority of the United 
 States, knowing that such statement is false or that the 
 tax is not so great as the portion of such price ascribed 
 to such tax, shall be guilty of a misdemeanor and upon 
 conviction thereof shall be punished by a fine of not more 
 than $1,000 or by imprisonment not exceeding one year, 
 or both. 
 
 TITLE XIV— GENERAL PROVISIONS. 
 
 of^artsXeafed '"^Ec. 1400. (a) That the following parts of Acts are 
 hereby repealed, subject to the limitations provided in 
 subdivision (b) : 
 
 (1) The following titles of the Revenue Act of 1916: 
 Title I (called " Income Tax ") ; 
 
 Title II (called " Estate Tax ") ; 
 
 Title III (called "Munitions Manufacturers' Tax"), 
 as amended; 
 Title IV (called "Miscellaneous Taxes "). 
 
 (2) The following parts of the Act entitled "An Act 
 to provide increased revenue to defray the expenses of 
 the increased appropriations for the Army and Navy and 
 the extensions of fortifications, and for other purposes," 
 approved March 3, 1917 : 
 
 Title III (called "Estate Tax") ; 
 
 Section 402 (called "Returns of Dividends"). 
 
 (3) The following titles of the Revenue Act of 1917 : 
 Title I (called " War Income Tax ") ; 
 
 Title II (called "War Excess-Profits Tax") ; 
 
 Title III (called " War Tax on Beverages ") ; 
 
 Title IV (called " War Tax on Cigars, Tobacco, and 
 Manufactures Thereof") ; 
 
 Title V (called "War Tax on Facilities Furnished by 
 Public Utilities, and Insurance ") ; 
 
 Title VI (called " AVar Excise Taxes ") ; 
 
 Title VII (called " War Tax on Admissions and 
 Dues ") ; Digitized by Microsoft® 
 
PEOVISIONS COMMON TO SEVERAL OBJECTS OF TAXATIOIf. 633 
 
 Title VIII (called " War Stamp Taxes ") ; 
 
 Title IX (called " War Estate Tax ") ; 
 
 Title X (called "Administrative Provisions"); 
 
 Title XII (called " Income-Tax Amendments"). 
 
 (b) Such parts of Acts, shall remain in force for the i^^^^^^^f^i"^- 
 assessment and collection of all taxes which have accrued sessment and coi- 
 thereunder, and for the imposition and collection of all etc/°" ° " ' 
 penalties or forfeitures which have accrued and may ac- 
 crue in relation to any such taxes, and except that the un- 
 expended balance of any appropriation heretofore made 
 and now available for the administration of any such part 
 of an Act shall be available for the administration of this 
 Act or the corresponding provision thereof: Provided, 
 That, except as otherwise provided in this Act, no taxes 
 shall be collected under Title I of the Revenue Act of 
 1916 as amended by the Revenue Act of 1917, or Title I 
 or II of the Revenue Act of 1917, in respect to any period 
 after December 31, 1917: Provided further, That the 
 assessment and collection of all estate taxes, and the 
 imposition and collection of all penalties or forfeitures, 
 which have accrued under Title II of the Revenue Act of 
 1916 as amended by the Act entitled "An Act to provide 
 increased revenue to defray the expenses of the increased 
 appropriations for the Army and Navy and the exten- 
 sions of fortifications, and for other purposes," approved 
 March 3, 1917, or Title IX of the Revenue Act of 1917, 
 shall be according to the provisions of Title IV of this 
 Act. In the case of any tax imposed by any part of an 
 Act herein repealed, if there is a tax imposed by this Act 
 in lieu thereof, the provision imposing such tax shall 
 remain in force until the corresponding tax under this 
 Act takes effect under the provisions of this Act. 
 
 Title I of the Revenue Act of 1916 as amended by the 
 Revenue Act of 1917 shall remain in force for the assess- 
 ment and collection of the income tax in Porto Rico and 
 the Philippine Islands, except as may be otherwise pro- 
 vided by their respective legislatures. 
 
 Sec. 1402. That if any clause, sentence, paragraph, or . Effect of par- 
 part of this Act shall for any reason be adjudged by any act. '™''''*'^ "' 
 court of competent jurisdiction to be invalid, such judg- 
 ment shall not affect, impair, or invalidate the remainder 
 of this Act, but shall be confined in its operation to the 
 clause, sentence, paragraph, or part thereof directly in- 
 volved in the controversy in which such judgment has 
 been rendered. 
 
 Sec. 1405. That this act may be cited as the " Revenue citation of act. 
 Act of 1918." 
 
 Sec. 1408. That every person who on or after April 6, of™tfacts~™ith 
 1917, has entered into any contract, undertaking, or united states; 
 agreement, with the United States, or with any depart- mSne''/ of^TSl 
 ment, bureau, officer, commission, board, or agency under ^YtT^eiTtlvr to 
 the United States or acting in its behalf, or with any contractB. 
 other person having contract relations with the United 
 Digitized by Microsoft® 
 
634 PKOVISIONS COMMOH TO SEVERAL OBJECTS OF TAXATION. 
 
 States, for the performance of any work or the supplying 
 of any materials or p-roperty for the use of or for the ac- 
 count of the United States, shall, within thirty days after 
 a request of the Commissioner therefor, file with the 
 Commissioner a true and correct copy of every such con- 
 tract, undertaking, or agreement. 
 
 Whoever fails to comply with such request of the Com- 
 missioner shall be guilty of a misdemeanor and shall be 
 punished by a fine of not more than $1,000 or by imprison- 
 ment for not more than one year, or both. 
 
 The Commissioner shall (when not violative of the 
 technical military or naval secrets of the Government) 
 have access to all information and data relating to any 
 such contract, undertaking, or agreement, in the posses- 
 sion, control or custody of any department, bureau, board, 
 agency, officer or commission of the United States, and 
 may call upon any such department, bureau, boarf, 
 agency, officer or commission for a full statement and de- 
 scription of any allowance for amortization, obsolescence, 
 depreciation or loss, or of any valuation, appraisal, ad- 
 justment or final settlement, made in pursuance of any 
 such contract, undertaking, or agreement. 
 Effective date Qec. 1409. That unlcss Otherwise herein specially pro- 
 vided, this Act shall take effect on the day following its 
 passage. 
 
 Approved, 6.55 P. M., February 24, 1919. 
 
 Digitized by Microsoft® 
 
APPENDIX. 
 
 CONTAINING LAWS OF A GENERAL NATURE AND MISCELLANEOUS 
 
 PROVISIONS APPLICABLE TO THE ADMINISTRATION OF 
 
 THE INTERNAL-REVENUE LAWS. 
 
 Chapter 1. 
 
 SUITS AND PROSECUTIONS— PRACTICE— LIENS- 
 REMISSIONS— UNITED STATES ATTORNEYS - 
 CLERKS OP COURTS— REPORTS, ETC. 
 
 -COMPROMISES AND 
 - COMMISSIONERS — 
 
 Jurisdiction of district courts. 
 Jurisdiction of circuit courts. 
 Suits for penalties, forfeitures, and 
 
 taxes. 
 Removal of suits against officers from 
 
 State to United States circuit courts. 
 Arrests. 
 
 Competency of witnesses. State laws. 
 Production of books, papers, etc., in 
 
 suits other tlian criminal. 
 Certified copies of papers admissible 
 
 as evidence. 
 Costs in internal-revenue suits upon 
 
 information from other than a col- 
 lector, etc. 
 Costs, when paid by defendant. 
 Laws of the States, rules of decision, 
 
 etc. 
 Proceedings on execution. State laws. 
 
 Act to regulate liens of judgments and 
 decrees of United States courts. 
 
 Interest on judgments, etc. 
 
 Circuit courts of appeals. 
 
 Writs of error and appeals. 
 
 Certificate of probable cause. 
 
 Property taken under revenue laws Ir- 
 repleviable. 
 
 Statute of limitations. 
 
 Compromises of claims and of cases 
 after judgment. Pardons. 
 
 Employment of attorneys or counsel. 
 
 Duty of district attorneys to prosecute 
 delinquents and to defend officers. 
 
 Reports of district attorneys and 
 marshals. 
 
 Warrants of arrest and prosecutions. 
 
 Clerks of courts, reports of, etc. 
 
 Note. — " The Judicial Code," an Act to codify, revise and amend 
 the laws relating to the judiciary, approved March 3, 1911 (36 Stat. 
 1087) went into effect January 1, 1912. It abolished circuit courts 
 (Sec. 289) and imposed the powers and duties upon district courts. 
 
 Several of the sections in this chapter from the Revised Statutes 
 are superseded as such and reproduced as noted. The provisions, so 
 far as they are substantially the same as existing statutes, are con- 
 strued as continuations thereof and not as new enactments. (Sec. 
 294). 
 
 Jnrisdlctlon of district conrts. 
 
 Sec. 24. [Act of March 3, 1911, " Judicial Code " {36 Stat., 1087) .] 
 The district courts shall have original jurisdiction as follows : 
 
 First. Of all suits of a civil nature, at common law or in equity, 
 brought by the United States, or by any officer thereof authorized 
 by law to sue, or between citizens of the same State claiming lands 
 under grants from different States; or, where the matter in contro- 
 versy exceeds, exclusive of interest and costs, the sum or value of 
 three thousand dollars, and (a) arises under the Constitution or laws 
 of the United States, or treaties made, or which shall be made, under 
 
 635 
 
 Digitized by Microsoft® 
 
636 
 
 APPENDIX. 
 
 their authority: Provided, however, That the foregoing provision 
 as to the sum or value of the matter in controversy shall not be 
 construed to apply to any of the cases mentioned in the succeeding 
 paragraphs of this section. 
 
 Second. Of all crimes and offenses cognizable under the authority 
 of the United States. 
 
 Third. * * * Of all seizures on land or waters not within ad- 
 miralty and maritime jurisdiction. 
 
 Coffey V. United States (116 U. S., 427; 117 Id., 233). 
 ******* 
 
 Fifth. Of all cases arising under any law providing for internal 
 revenue. 
 
 ******* 
 
 Ninth. Of all suits and proceedings for the enforcement of pen- 
 alties and forfeitures incurred under any law of the United States. 
 ******* 
 
 Eleventh. Of all suits brought by any person to recover damages 
 for any injury to his person or property on account of any act done 
 by him, under any law of the United States, for the protection or 
 collection of any of the revenues thereof. 
 
 ******* 
 
 Twentieth. Concurrent with the Court of Claims, of all claims 
 not exceeding ten thousand dollars founded upon the Constitution 
 of the United States or any law of Congress, or upon any regulation 
 of an Executive Department, or upon any contract, express or im- 
 plied, with the Government of the United States, or for damages, 
 liquidated or unliquidated, in cases not sounding in tort, in respect 
 to which claims the party would be entitled to redress against the 
 United States, either in a court of laAv, equity, or admiralty, if the 
 United States were suable, and of all set-offs, counterclaims, claims 
 for damages, whether liquidated or unliquidated, or other demands 
 whatsoever on the part of the Government of the United States 
 against any claimant against the Government in said court: Pro- 
 vided, however. That nothing in this paragraph shall be construed 
 as giving to either the district courts or the Court of Claims juris- 
 diction to hear and determine claims growing out of the late Civil 
 War, and commonly known as " war claims," or to hear and de- 
 termine other claims which had been rejected or reported on ad- 
 versely prior to fhe third day of March, eighteen hundred and 
 eighty-seven, by any court, department, or commission authorized 
 to hear and determine the same, or to hear and determine claims 
 for pensions ; or as giving to the district courts jurisdiction of cases 
 brought to recover fees, salary, or compensation for official services 
 of officers of the United States or brought for such purpose by per- 
 sons claiming as such officers or as assignees or legal representatives 
 thereof; but no suit pending on the twenty-seventh day of June, 
 eighteen hundred and ninety-eight, shall abate or be affected by 
 this provision: And provided further, That no suit against the Gov- 
 ernment of the United States shall be allowed under this para- 
 graph unless the same shall have been brought within six years 
 after the right accrued for which the claim is made. * * * AH 
 
 Digitized by Microsoft® 
 
APPENDIX. 637 
 
 suits brought and tried under the provisions of this paragraph shall 
 be tried by the court without a jury. 
 
 The original judiciary act of September 24, 1789, remained in force 
 with scarcely any modification until the act of March 3, 1875, which 
 greatly enlarged the jurisdiction of the circuit courts (amended by the 
 act of March 3, 1887 ; corrected by the act of August 13, 1888, passed to 
 cure defects in the enrollment of the act of March 3, 1887). 
 
 The District Court, sitting as a court of claims, under Section 24 
 of the Judicial Code of March 3, 1911, has jurisdiction over claims 
 against the United States for refunding taxes paid under the Corpora- 
 tion Tax Act of August 5, 1909, under duress and protest to the col- 
 lector and by him turned over to the United States. (United States v. 
 Emery, Bird, Thayer Realty Co., 237 U. S. 28; T. D. 2180.) 
 
 Exclusive jnrlsdlcUon of courts of TJnited States. 
 
 Sec. 256. [Act of March. 3, 1911, " Judicial Code " {36 Stat., 1087) .] 
 The jurisdiction vested in the courts of the United States in the cases 
 and proceedings hereinafter mentioned shall be exclusive of the courts 
 of the several States : 
 
 First. Of all crimes and offenses cognizable under the authority of 
 the United States. 
 
 Second. Of all suits for penalties and forfeitures incurred under 
 the laws of the United States. 
 
 Third. Of all civil causes of admiralty and maritime jurisdiction; 
 saving to suitors, in all cases, the right of a common-law remedy, 
 where the common law is competent to give it. 
 
 Fourth. Of all seizures under the laws of the United States on land 
 or on waters not within admiralty and maritime jurisdiction. 
 
 Section 711, Revised Statutes, reenacted. 
 
 The Supreme Court is the only court of the United States which de- 
 rives any part of Its power directly from the Constitution. The circuit 
 and district courts of the United States are, by authority of the Con- 
 stitution, the creatures of the National Legislature, having such jurisdic- 
 tion, and only such, as Congress has been pleased to confer upon them, 
 and having no common-law jurisdiction, though drawing upon the com- 
 mon law for modes of procedure and practice when necessary to carry 
 into effect the jurisdiction given by statute. (United States v. Cultus 
 Joe, 15 Int. Rev. Rec, 58.) 
 
 In general a crime against the laws of the United States is not 
 cognizable in a State court. (Ex parte Houghton, 27 Int. Rev. Rec, 
 273.) 
 
 The same offense may be made punishable both under the laws of a 
 State and of the United States; and over such offenses the State and 
 Federal courts have concurrent jurisdiction. (United States v. Wells, 
 15 Int. Rev. Rec, 56; Fed. Cas. No. 16665.) 
 
 The same act may be punished in both jurisdictions ; one Is not a 
 bar to the other. (Southern Ry. Co. v. Railroad Commission of Indiana, 
 236 U. S., 439.) 
 
 Where a State court and a United States court may each take juris- 
 diction, the tribunal which first gets it holds it to the exclusion of the 
 other until its duty is fully performed. (Covell v. Heyman, 111 U. S., 
 182.) 
 
 The same act may constitute an offense against the United States and 
 against a State, subjecting the guilty party to punishment under the 
 laws of each Government ; and may embrace two or more offenses. 
 (Cross V. North Carolina, 132 U. S., 131, and cases cited. And see Teal v. 
 Felton, 12 How., 284, 292; Crossley v. California, 168 U. S., 641.) 
 
 There are no common-law offenses against the United States. (United 
 States V. Gibson, 47 Fed., 833.) 
 
 Digitized by Microsoft® 
 
638 APPENDIX. 
 
 Where there is a conflict between* State and Federal statutes, the 
 latter will prevail. (Chicago, Ind., and L. Ry. Co. v. United States, 219 
 U. S., 486.) 
 
 A State court has no authority to enjoin the proceedings of a Federal 
 court. (Central National Banli, Boston, v. Hazard, 49 Fed., 293.) 
 
 Conflicting State and Federal jurisdiction. (Booth v. St. Louis Fire 
 Engine Manufacturing Co., 40 Fed., 1.) 
 
 Jurisdiction where a federal question is involved. (Adams Express 
 Co. V. Michigan, 177 U. S., 404.) 
 
 OSoiises begun in one district ^ind completed in another. 
 
 Sec. 42. [Act of March 3, 1911, " Judicial Code " {36 Stat., 1087).] 
 When any offense against the United States is begun in one judicial 
 district and completed in another, it shall be deemed to have been 
 committed in either, and may be dealt with, inquired of, tried, de- 
 termined, and punished in either district, in the same manner as if 
 it had been actually and wholly committed therein. 
 
 Section 731, R. S., reenacted. 
 
 The court of the district where the res is seized has jurisdiction though 
 the violation of law occurred in another State. (United States v. 390 
 Barrels of Distilled Spirits, 3 Int. Rev. Rec, 114 ; Fed. Oas. No. 16502 ; 
 United States v. Sherry, 10 Int. Rev. Rec, 205; Fed. Cas. No. 16369.) 
 
 Suits tor taxes, penalties, or forfeitures to be brought in the name of the United States. 
 
 Sec. 919. All suits for the recovery of any duties, imposts, or 
 taxes, or for the enforcement of any penalty or forfeiture provided 
 by any act respecting imports or tonnage, or the registering and 
 recording or enrolling and licensing of vessels, or the internal rev- 
 enue, or direct taxes, and all suits arising under the postal laws, 
 shall be brought in the name of the United States. 
 
 Where suits for penalties, forfeitures, and taxes arc to be brought. 
 
 Sec. 43. [Act of March 3, 1911, " Judicial Code " {36 Stat., 1087).] 
 All pecuniary penalties and forfeitures may be sued for and recov- 
 ered either in the district where they accrue or in the district where 
 the offender is found. 
 
 Section 732, R. S., reenacted. 
 
 Sec. 44. [Act of March 3, 1911, " Judicial Code " {36 Stat., 1087).] 
 Taxes accruing under any law providing internal revenue may be 
 sued for and recovered either in the district where the liability for 
 such tax occurs or in the district where the delinquent resides. 
 
 Section 733, R. S., reenacted. 
 
 See section 3213, R. S., p. 132. 
 
 United States v. New York, New Haven & Hartford Railroad Co. (10 
 Ben., 144; 24 Int. Rev. Rec, 341). The Dollar Savings Bank v. United 
 States (19 Wall., 227; 22 Int. Rev. Rec. 310). 
 
 Jurisdiction in case of actions on deputy collectors' bonds. ( Sec. 3148, 
 p. 76.) 
 
 Officers suffering injuries may maintain suits for damages in the 
 United States court of the district where the party resides or may be 
 found. (Sec. 3171, p. 101.) 
 
 Jury may be waived in the trial of petty oifenses. (Shick r. United 
 States, 195 U. S., 65.) 
 
 Residence of a corporation. (Booth et al. v. St. Louis Fire Engine 
 Manufacturing Co., 40 Fed., 1.) 
 
 Residence of a railroad corporation. (Galveston v. Gonzales, 151 
 U. S., 496.) 
 
 Penal offenses created by tlie statute, whether prosecuted by indict- 
 ment or in^o''™''^''^jQ^-]^^C/*J5i^^}if5^i^(g^'^ clearly described in the 
 
APPENDIX. 639 
 
 pleadings for recovery of the penalty. (United States r. ^Mann, 24 Int. 
 Rev. Rec, 20; 95 V. S., 580.) 
 
 When the crime is a statutory one, the offense must be charged with 
 precision and certainty. (I.edbetter v. United States, 170 U. S. 606.) 
 
 The accused must be apprised by the indictment, with reasonable 
 certainty, of the nature of the accusation against him. (United States r. 
 Simmons, 96 U. S., 360.) 
 
 Essentials of an indictment. (United States v. Green, 136 Fed., 618; 
 Brown v. United States, 143 Fed., 60.) 
 
 An indictment charging in the language of the statute sufficient 
 without .setting out the particular acts. (Hardesty r. United States, 
 168 Fed., 25.) 
 
 Indictment of a corporation. The only punishment which can be 
 inflicted upon a corporation is a fine. (John Gund Brewing Co. r. 
 United States, 204 Fed., 20.) 
 
 Defects in Indictment may be overcome by bill of particulars. (United 
 States V. Thompson, 189 Fed., 838.) 
 
 Technical objections are not regarded with as much favor as at one- 
 time. (John Gund Brewing Co. v. United States, 240 Fed., 20.) 
 
 Persons not to be arretted in one district for trial in anotlier in ciril actions. 
 
 Sec 1. \Act of August 13, 1888 {25 Stat., 4-33), amending act of 
 March 3, 1876 {18 Stat., 4W).] But no person shall be arrested in 
 one district for trial in another in any civil action before a circuit 
 or district court ; and no civil suit shall be brought before either of 
 said courts against any person by any original process or proceed- 
 ing in any other district than that whereof he is an inhabitant, but 
 where the jurisdiction is founded only on the fact that the action is 
 betTreen citizens of different States, suit shall be brought only in 
 the district of the residence of either the plaintiff or the defendant. 
 
 * * ii: 
 
 Superseded by section 51 of the Judicial Code. 
 
 Sec 51. [Act of March 3, 1911, " Judicial Code " {36 Stat., 1087).] 
 Except as provided in the five succeeding sections, no person shall 
 be arrested in one district for trial in another, in any civil action 
 before a district court ; and, except as provided in the six succeeding 
 sections, no civil suit shall be brought in any district couit. against 
 any person by any original process or proceeding in any other dis- 
 trict than that whereof he is an inhabitant; but where the jurisdic- 
 tion is founded only on the fact that the action is between citizens 
 of different States, suit shall be brought only in the district of the 
 residence of either the plaiutiff or the defendant. 
 
 A corporation may be indicted for the acts of its officers or employees. 
 (United States v. Baltimore & Ohio B. B. Co., 8 Int. Rev. Bee, 148; 
 Fed. Cas. No. 14509.) 
 
 Suit against foreisji corporations doing business in a State. (Wilson 
 Packing Co. v. Hunter, 25 Int. Bev. Bee, 137; Fed. Cas. No. 17852.) 
 
 Foreign corporations, where to be sued- (Mohr & Mohr Distilling Co. 
 V. Sundry Insurance Companies, 28 Int. Bev. Bee, 218.) 
 
 Service of process on nonresident defendant during compulsory attend- 
 ance illegal. (United States v. Bridgman, 26 Int. Bev. Rec, 139; Fed. 
 Cas. 14645.) Also where fraud is used to induce defendant to come with- 
 in jurisdiction of court (Steiger v. Bonn, 26 Int. Bev. Rec, 365). A party 
 going into another State as witness exempt from process (Broolis v. 
 Farwell, 26 Int. Bev. Bee, 355). 
 
 Sections 50 and 53, Judicial Code, provide for cases where there are 
 two or more defendants residing in different districts. 
 
 In conspiracy to defraud, the parties may be tried in any district 
 where the conspiracy is committed or an overt act done in pursuance of 
 the illegal purpose. (United States v. Bindskopf, 6 Biss., 259 ; Fed. Cas. 
 
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640 
 
 APPENDIX. 
 
 Kcmoval of suits or prosecutions against officers from State courts to United States courts. 
 
 Sec. 33. [Act of March 3, 1911, " Judicial Code " {36 Stat., 1087), 
 amended hy act of August 23, 1916 {39 Stat., 632) .] That when any 
 civil suit or criminal prosecution is commenced in any court of a 
 State against any officer appointed under or acting by authority of 
 any revenue law of the United States noAv or hereafter enacted, or 
 against any person acting under or by authority of any such officer, 
 on account of any act done under color of his office or of any such 
 law, or on account of any right, title, or authority claimed by such 
 officer or other person under any such law, or is commenced against 
 amr person holding property or estate by title derived from any such 
 officer and affects the validity of any such revenue law, or against 
 any officer of the courts of the United States for or on account of any 
 act done under color of his office or in the performance of his duties 
 as such officer, or when any civil suit or criminal prosecution is com- 
 menced against any person for or on account of anything done by 
 him while an officer of either House of Congress in the discharge of 
 his official duty in executing any order of such House, the said suit 
 or prosecution may at any time before the trial or final hearing there- 
 of be removed for trial into the district court next to be holden in 
 the district where the same is pending upon the petition of such de- 
 fendant to said district court and in the following manner: Said 
 petition shall set forth the nature of the suit or prosecution and be 
 verified by affidavit and, together with a certificate signed by an at- 
 torney or counselor at law of some court of record of the State where 
 such suit or prosecution is commenced or of the United States stating 
 that, as counsel for the petitioner, he has examined the proceedings 
 against him and carefully inquired into all the matters set forth in 
 the petition, and that he believes them to be true, shall be presented to 
 the said district court, if in session, or if it be not, to the clerk thereof 
 at his office, and shall be filed in said office. The cause shall thereupon 
 be entered on the docket of the district court and shall proceed as a 
 cause originally commenced in that court; but all bail and other 
 security given upon such suit or prosecution shall continue in like 
 force and effect as if the same had proceeded to final judgment and 
 execution in the State court. When the suit is commenced in the 
 State court by summons, subpoena, petition, or any other process 
 except capias, the clerk of the district court shall issue a writ of 
 certiorari to the State court requiring it to send to the district court 
 the record and the proceedings in the cause. When it is commenced 
 by capias or by any other similar form of proceeding by which a 
 personal arrest is ordered, he shall issue a writ of habeas corpus cum 
 causa, a duplicate of which shall be delivered to the clerk of the State 
 court or left at his office by the marshal of the district or his deputy 
 or by some other person duly authorized thereto; and thereupon it 
 shall be the duty of the State court to stay all further proceedings 
 in the cause, and the suit or prosecution, upon delivery of such 
 process, or leaving the same as aforesaid, shall be held to be removed 
 to the district court, and any further proceedings, trial, or judgment 
 therein in the State court shall be void. If the defendant in the suit 
 or prosecution be in actual custody on mesne process therein, it shall 
 be the duty of the marshal, bv virtue of the writ of habeas corpus 
 cum causa, to take the body of the defendant into his custody, to be 
 dealt with in the cmsP^&^M^jf M'^Sfif q|M the order of the district 
 
APPENDIX. 641 
 
 court, or, in vacation, of any judge thereof ; and if, upon the removal 
 of such suit or prosecution, it is made to appear to the district court 
 that no copy of the record and proceedings therein in the State court 
 can be obtained, the district court may allow and require the plaintiff 
 to proceed de novo and to file a declaration of his cause of action, and 
 the parties may thereupon proceed as in actions originally brought 
 in said district court. On failure of the plaintiff so to proceed, judg- 
 ment of non prosequitur may be rendered against him, with costs for 
 the defendant. 
 
 The act of 1833 providing for the removal of proceedings against Fed- 
 eral revenue officers (4 Stat. 633), included in section 643, R. S., was re- 
 pealed by the " Judicial Code," and reenacted as section 33. 
 
 Jurisdiction may be waived. (In re Jloore, 209 U. S., 490.) 
 
 United States officer not liable to criminal prosecution in State court 
 for acts done in official capacity. (In re Waite, 81 Fed., 3o9.) 
 
 Under the provision that " any further proceeding, trial, or judgment 
 therein in the State court shall be void," an indictment found in a State 
 court after the removal of the cause to the United States Circuit Court 
 was null ; and where, upon habeas corpus cum causa, it appears that the 
 prisoners were In the discharge of their duty as revenue officers of the 
 United States when the act was committed, and were without fault, they 
 will be discharged. (State of North Carolina v. Kirkpatrick et al., 42 
 Fed. 689; 36 Int. Rev. Rec, 133.) 
 
 This act is constitutional. (State v. Hoskins et al., 23 Int. Rev. Rec, 
 263; 77 N. C, 530.) 
 
 Removal of criminal case. (Tennessee v. Davis, 100 U. S., 257 ; 26 Int. 
 Rev. Rec, 90; Virginia v. De Hart, 119 Fed., 626.) 
 
 Case of a guard acting in aid of a marshal. (Davis i\ South Carolina, 
 107 U. S., 597; 29 Int. Rev. Rec, 189.) 
 
 Habeas corpus : The writ can not be sustained if Issued by State court 
 to Inquire into detention of a person by a United States officer. Conflict be- 
 tween State and United States courts. (Tarble's Case, 13 Wall., 397 ; 15 Int. 
 Rev. Rec, 135; dissenting opinion by Chief Justice Chase, 15 Id., 193.) 
 
 A summary proceeding by a landlord to recover from a lessee posses- 
 sion of premises used as a bonded wareliouse, to which proceeding the 
 collector of internal revenue and a United States storekeeper are made 
 parties defendant, and described as undertenants holding over, is remov- 
 able to a Federal court under this section. (Gallatin v. Sherman et al., 
 77 Fed., 337.) 
 
 When a prosecution can be deemed to be commenced within the mean- 
 ing of the acts of Congress authorizing removal from State courts to 
 United States courts for trial, (Virginia v. Paul, 148 U. S., 107.) 
 
 A criminal prosecution is commenced as soon as a warrant has been 
 issued and is then removable Into the United States circuit court. (State 
 of Georgia v. Bolton, 11 Fed., 217.) 
 
 The removal of a prosecution against a United States revenue officer 
 from a State to a Federal court is effected, and complete jurisdiction ac- 
 quired, immediately upon the filing of a proper petition therefor in the 
 clerk's office of the Federal court. (State v. Sullivan, 50 Fed., 593.) 
 
 Expenses accruing in a local court in action against a collector before 
 being transferred to a Federal court are payable from the appropriation 
 "Miscellaneous expenses, Internal-Revenue Service. (Comp. MS. Dec, 
 April 11, 1907, case of Cureton i\ Rueker. ) 
 
 Circuit Court of Appeals has no jurisdiction of suit by one railroad 
 company against another and a collector of Internal revenue to deter- 
 mine liability for income tax on certain dividends as between the two 
 companies, where controversy depends wholly on construction of lease 
 executed by plaintiff railroad to defendant, both being citizens of New 
 York, whose courts may determine controversy, unless collector should 
 remove case under section 33 of Judicial Code. (Rensselaer & Saratoga 
 R. Co. V. Delaware & Hudson Co., 257 Fed., 555.) 
 
 This section does not apply to petition by Federal officer in custody 
 of State officials charged with offense against State laws, committed in 
 performance of his^ffl<^lg^^ies^.^Ex g^e Beach, 259 Fed., 956.) 
 
 140184°— 20 41 
 
642 
 
 APPENDIX. 
 
 Charges which may be joined lu one Indictment. 
 
 Sec. 1024. When there are se-^eral charges against any person for 
 the same act or transaction, or for two or more acts or transactions 
 comiected together, or for two or more acts or transactions of the 
 same class of crimes or offenses, which may be properly joined, in- 
 stead of having several indictments the whole may be joined in one 
 indictment in separate counts ; and if two or more indictments are 
 found in such cases, the court may order them to be consolidated. 
 
 Although section 3397 designates as felonies some of the offenses 
 specified in it, and omits to designate others as felonies, offenses of eiich 
 class, which arise out of one and the same transaction, may, under 
 section 1024, be charged in one indictment in difterent counts. (United 
 States V. Louis Jacoby, 12 Blatch., 491; Fed. Cas. No. 15462.) 
 
 Several charges may be joined in one indictment in separate counts, 
 but the accused shall not be tried at the same time for different of- 
 fenses ; and an indictment charging the accused in one count with 
 carrying on the business of a retail liquor dealer without having paid 
 the special tax, and in another with dealing in manufactured tobacco 
 without payment of the special tax, will be quashed. (United States v. 
 Gaston, 28 Fed., 848.) 
 
 The subject of the joinder of distinct offenses in one indictment against 
 the same person fully examined. (Pointer u. United States, 151 U. S., 
 396; Williams v. United States, 16S U. S., 390; United States v. Ma- 
 guire, 22 Int. Rev. Kec, 146 ; Fed. Cas. No. 15708. ) 
 
 The statute, in permitting the joinder of different offenses in a 
 single indictment, by necessary implication authorizes a separate pun- 
 ishment for each offense proved. (United States v. Bennett, 17 Blachf., 
 357; Fed. Gas. 14572; 26 Int. Rev. Rec, 45.) 
 
 Each count is in fact a separate indictment. (United States v. 
 Malone, 9 Fed., 897.) 
 
 Consolidation of indictments. (United States v. Green, 146 Fed., 
 781.) 
 
 Felonies defined. All offenses which may be punished by death, or 
 imprisonment for a term exceeding one year, shall be deemed felonies. 
 All other offenses shall be deemed misdemeanors. (Sec. 335, act of 
 March 4, 1909, 35 Stat., 1152, Criminal Code.) 
 
 There can be no constructive offenses. (United States v. Lacher, 
 134 U. S., 624.) 
 
 Statutes creating and defining crimes can not be extended by in- 
 tendment. (Todd V. United States, 158 U. S., 282.) 
 
 Where two counts constitute but one offense a conviction can be 
 had only on one. (May r. United States, 199 Fed., 53; T. D. 1798.) 
 
 Offenders against the United States, hoiv arrested and remoTed for trial — ^Warrants may be Issaed 
 
 by State officers. 
 
 Sec. 1014. For any crime or offense against the United States, the 
 offender may, by any justice or judge of the United States, or by any 
 commissioner of a circuit court to take bail, or by any chancellor, 
 judge of a supreme or superior court, chief or first judge of common 
 pleas, mayor of a city, justice of the peace, or other magistrate, of 
 any State where he may be found, and agreeably to the usual mode 
 of process against offenders in such State, and at the expense of the 
 United States, be arrested and imprisoned, or bailed, as the case may 
 be, for trial before such court of the United States as by law has 
 cognizance of the offense. Copies of the process shall be returned as 
 speedily as may be into the clerk's office of such court, together with 
 the recognizances of the witnesses for their appearance to testify in 
 the case. And where any offender or witness is committed in any 
 district other than that where the offense is to be tried, it shall be 
 the duty of the judge of the district where such offender or witness 
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APPEISTDIX. 643 
 
 is imprisoned, seasonably to issue, and of the marshal to execute, a 
 warrant for his removal to the district where the trial is to be had. 
 
 Marshal can not be aided by the military. (Sec. 15, act of June 18, 
 1878 <26 Stat., 152) ; 16 Op. Atty. Gen., 162.) 
 
 A person arrested in one district may be held to bail for trial in an- 
 other upon a certified copy of an indictment which has been found 
 against him in such other district (United States v. Pope, 24 Int. Rev. 
 Eec, 29; Fed. Cas. No. 16069.) 
 
 A preliminary examination before a commissioner is not a proceeding 
 in court. (Todd v. United States, 158 U. S., 278.) 
 
 Powers of United States commissioner. (United States v. Berry, 
 26 Int. Rev. Rec, 405; United States v. Allred, 155 U. S., 594.) 
 
 The powers exercised by a United States commissioner in the exami- 
 nation of a person charged with an offense are those common to all 
 examining magistrates. To authorize him to commit he need not be 
 convinced of the guilt of the accused, but the proof should be such as 
 to afford good reason to believe that the offense was committed, and 
 by the accused ; otherwise it is his duty to discharge. (Ex parte Jones, 
 96 Fed., 200.) 
 
 Warrants of arrest, page 659. 
 
 Section 1014 made applicable to the Philippine Islands. Act of Feb- 
 ruary 9, 1903 (32 Stat, 806). 
 
 Marshal to take prisoner to nearest judicial officer, page 660. 
 
 Laws of the State constitute rules of decision as to competency of witnesses. . 
 
 Sec. 858. lAmended hy act of June ^9, 1906 {3^. Stat., 618).] The 
 competency of a witness to testify in any civil action, suit, or pro- 
 ceeding in the courts of the United States shall be determined by 
 the laws of the State or Territory in which the court is held. 
 
 Persons charged with crime can be witnesses in their own behalf. 
 Act Of March 16, 1878. (20 Stat, 30.) 
 
 That in the trial of all indictments, informations, complaints, and 
 other proceedings against persons charged with the commission of 
 crimes, offenses, and misdemeanors, in the United States courts, 
 Territorial courts, and courts-martial, and courts of inquiry, in 
 any State or Territory, including the District of Columbia, the per- 
 son so charged shall, at his own request, but not otherwise, be a 
 competent witness. 
 
 And his failure to make such request shall not create any pre- 
 sumption against him. 
 
 Accomplices used as witnesses; rule as to prosecution. (United States 
 V. Ford, Whiskey Oases, 99 U. S. (9 Otto), 594; 25 Int Rev. Rec, 127.) 
 
 Constitutional rights of witnesses who testify in their own behalf. 
 (John Powers v. United States, 223 U. S., 303.) 
 
 Failure to testify. (Diggs v. United States, 220 Fed., 545.) 
 
 The evidence of an accomplice is competent. If corroborated by other 
 witnesses, credit is to be given to it. (United States v. Whalen et al., 
 7 Int. Rev. Rec, 161; Fed. Cas. No. 16669; United States v. Gallieott, 
 7 Id., 179; Fed. Cas. No. 14700.) 
 
 Confessions inadmissible unless voluntary and no coercion. (United 
 States V. Wilson, 163 Fed., 338; Bram v. United States, 168 U. S., 543.) 
 
 No person shall be compelled in any criminal case to be a witness 
 against himself. Fifth amendment to Constitution. (In re Mark Strouse, 
 11 Int. Rev. Rec, 182 ; Fed. Cas. No. 13548 ; In re Phillips, 10 Int Rev. 
 Rec, 107; Fed. Cas. No. 11098.) 
 
 An officer of a corporation Is not privileged from giving testimony as 
 a witness because it may tend to convict the corporation of a penal 
 offense. (London v. Everett H. Dunbar Corporation^ 179 Fed., 506.) 
 
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644 APPENDIX. 
 
 Frodnctlon of books, papers, etc., in suits otiicr than criminal. . . 
 
 Sec. 5. [Act of June 22, 187 ^ {IS Stat., 187).] That in all suits and 
 proceedings other than criminal arising under any of' the revenue- 
 laws of the United States, the attorney representing the Government, 
 whenever, in his belief, any business-book, invoice, or paper, belong- 
 ing to or under the control of the defendant or claimant, will tend to 
 prove any allegation made by the United States, may make a written 
 motion, particularly describing such book, invoice, or paper, and set- 
 ting forth the allegation which he expects to prove ; and thereupon 
 the court in which suit or proceeding is pending may, at its discre- 
 tion, issue a notice to the defendant or claimant to produce such 
 book, invoice, or paper in court, at a day and hour to be specified in 
 said notice, which, together with a copy of said motion, shall be 
 served formally on the defendant or claimant by the United States 
 marshal by delivering to him a certified copy thereof, or otherwise 
 serving the same as original notices of suit in the same court are 
 served; and if the defendant or claimaiit shall fail or refuse to pro- 
 duce such book, invoice, or paper in obedience to such notice, the 
 allegation stated in the said motion shall be taken as confessed unless 
 ■ his failure or refusal to produce the same shall be explained to the 
 satisfaction of the court. And if produced, the said attorney shall 
 be permitted, under the direction of the court, to make examination 
 (at which examination the defendant or claimant, or his agent, may 
 be present) of such entries in said book, invoice, or paper as relate 
 to or tend to prove the allegation aforesaid, and may offer the same 
 in evidence on behalf of the United States. 
 
 But the owner of said books and papers, his agent or attorney, 
 shall have, subject to the order of the court, the custody of them, 
 except pending their examination in court as aforesaid. 
 
 This act not repugnant to the Constitvition. (United States v. Three 
 Tons of Coal, 21 Int. Rev. Rec, 251; Fed. Cas. No. 16515.) 
 
 This section applies to proceedings under the internal-revenue laws as 
 well as the customs- revenue laws. The act is constitutional. (United 
 States V. Distillery No. 28 and Other Property, 21 Int. Rev. Eec, 366; 
 Fed. Cas. No. 14966.) 
 
 A compulsory production of a person's private papers to be used as 
 evidence against him in a proceeding to forfeit his property for alleged 
 fraud against the revenue laws is an " unreasonable search or seizure " 
 within the meaning of the fourth amendement to the Constitution. 
 (Boyd r. United States, 116 U. S., 617; 32 Int. Rev. Rec, 62.) 
 
 The power to compel the production of boobs and papers covers such 
 documents only as would be, " if produced, competent material evi- 
 dence for the party applying therefor." It does not permit the inquisi- 
 tion into private records on the mere possibility that something may be 
 found to refresh the recollection of a witness, such records not being in 
 themselves relevant to the case. (United States v. Tilden, 25 Int. Rev. 
 Kec, 352; Fed. Cas. No. 16522.) 
 
 Searches .and seizures. (Hale v. Henkel, 201 U. S., 43; Weeks v. 
 United States, 232 U. S., .383; T. D. 1964.) 
 
 Section 724, R. S., us to power to produce books and papers in action 
 at law. (Carpenter r. Winn, 221 U. S., .533.) 
 
 Certified copies of papers admissible as evidence. 
 
 Sec. 882. Copies of any books, records, papers, or documents in 
 any of the Executive Departments, authenticated under the seals of 
 
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APPENDIX. 645 
 
 such Departments, respectively, shall be admitted in evidence equally 
 with the originals thereof. 
 
 As to transcripts from books in suits against delinquent officers. 
 (Sees. 886, 887, pp. 671, 672.) 
 
 Abstract from records can be introduced as evidence. (Hart v. United 
 States, 183 Fed., 368.) 
 
 Typewritten letter signed with stencil inadmissible as evidence, unless 
 acknowledged. ( Sprinkle v. United States, 150 Fed., 56. ) 
 
 The proper mode of proving papers on file in the Departments is by 
 procuring certified copies. (Barnes v. Schmelder, 9 Wall., 253.) 
 
 Documents not official do not by the mere fact of certification become 
 so authenticated as to entitle them to be read in evidence. (Block v. 
 United States, 7 Ct. Cls., 406.) 
 
 In the matter of the application of a private person for a certified 
 copy of records and files of Department. (30 Int. Rev. Kec, 382.) 
 
 No information in regard to transactions of an official character in 
 this Department is to be communicated to anyone not authorized to re- 
 ceive the same. 
 
 No information in regard to the claim of any person which has ever 
 been filed in the Department is to be given to any other person, unless 
 proper authority is shown by way of power of attorney, or by letters 
 of administration, or otherwise in a manner satisfactory to the Secre- 
 tary, or an Assistant Secretary, or to the head of the proper Bureau 
 in the Department, or chief of the proper division in the Secretary's 
 office. (Department Rule IX; Dept. Cir., No. 69, July 5, 1906.) 
 
 In all cases where copies of documents or records are desired by, or 
 on behalf of, parties to a suit, whether in a court of the United States 
 or any other, such copies shall be furnished to the court only, and on a 
 rule of the court upon the Secretary of the Treasury requesting the 
 same. Exceptions to this rule will be made only on the written order 
 of the Secretary or of an Assistant Secretary. (Department Rule IX.) 
 
 The records in the office of collector of customs respecting the entry, 
 liquidation, and payment of duties are so far public records that the 
 importer has a right to inspect them when they relate to his importa- 
 tions. (United States v. Benjamin H. Hutton and Charles G. Landon, 
 25 Int. Rev. Rec.,.57; Fed. Cas. No. 15433.) 
 
 Official communications privileged from disclosure on the ground of 
 public policy. (Gardner v. Anderson, 22 Int. Rev. Rec, 41; Fed. Cas. 
 No. 5220.) 
 
 Privileged records, documents, or communications. (Shattuc v. Mc- 
 Arthur, 25 Fed., 137, note 2 ; 15 Op. Atty. Gen., 415, 562 ; 16 Id., 24 ; 24 
 Int. Rev. Rec, 178; papers upon which an assessment is made.) 
 
 Official records not to be furnished for use of private litigants in State 
 court. (T. D. 224.) 
 
 A subpoena duces tecum, issued by a State court, was served upon a 
 district attorney, requiring him to appear as a witness in a private 
 suit and bring with him all letters and telegrams received from the 
 Commissioner of Internal Revenue relative to certain causes then pend- 
 ing in a United States court on indictments under the internal-revenue 
 laws. Advised that it would be proper for the attorney to appear be- 
 fore the State court in obedience to the writ, and there object to pro- 
 duce the papers on the ground that they are privileged, if, in his judg- 
 ment or in that of the Commissioner, their production would be preju- 
 dicial to the public interests. (15 Op. Atty. Gen., 378; 23 Int. Rev. 
 Rec, 341.) 
 
 The head of an executive department may legally prohibit the chief 
 of a bureau from producing in court any official records of the depart- 
 ment, or certified copies thereof, in obedience to a subpoena duces tecum, 
 and from making or certifying copies of such official records. 
 
 The records of executive departments are quasi-confidential in their 
 nature, and must be classed as privileged communications whose pro- 
 duction can not be compelled by a court without express authority of 
 law. (25 Op. Atty. Gen., 326.) 
 
 Officers of the executive departments can not be required to remove 
 records or papers filed therein by subpoena duces tecum. (5 Lawrence 
 
 Dec, 446. ) Digitized by Microsoft® 
 
646 APPENDIX. 
 
 The Federal courts have jua-isdiction, under section 733, to issue writ 
 for the purpose of releasing a deputy revenue collector from imprison- 
 ment for alleged contempt of a State court in refusing to testify to the 
 contents of the records of the internal-revenue office. (In re Huttman, 
 70 Fed., 700; 41 Int. Rev. Rec, 477.) 
 
 An instruction issued by the Commissioner of Internal Revenue direct- 
 ing collectors and their deputies to refuse to produce, in criminal prose- 
 cutions of liquor dealers in the State courts, the returns made to the 
 collectors, or the lists showing payments of Federal liquor taxes, or to 
 give Information derived from official sources as to the fact of such 
 payments, is valid. (In re Weelcs, Vermont (1897), 82 Fed., 729; 43 
 Int. Rev. Rec, 393 ; Boske v. Comingore, 177 U. S., 459 ; T. D., 104 ; In re 
 Lamberton, 124 Fed., 446 ; T. D., 689 ; Stegall v. Thurman, 175 Fed., 813 ; 
 T. D., 1616; In re Comingore, 96 Fed., 552; T. D., 21584.) 
 
 Costs 1b luternal-rerenue suits upoii information from other tlian collector, etc. 
 
 Sec. 969. Wlien a suit for the recovery of any- penalty or forfeiture 
 accruing under any law providing internal revenue is brought upon 
 information received from any person other than a collector, deputy 
 collector, or inspector of internal revenue, the United States shall not 
 be subject to any costs of suit. 
 
 Similar provision in section 3214, p. 134. 
 
 Costs when several actions are brought which might be Joined in one. 
 (Sees. 977, 980.) 
 
 Costs nlieii paid by defendant. 
 
 Sec. 974. When judgment is rendered against the defendant in a 
 prosecution for any fine or forfeiture incurred under a statute of the 
 United States, he shall be subject to the payment of costs; and on 
 every conviction for any other offense not capital, the court may in its 
 discretion avrard that the defendant shall pay the costs of the prose- 
 cution. 
 
 The word " defendant " held to include a claiinant in an action iu rem 
 for forfeiture. (United States v. Seven Barrels Distilled Oil, 8 Int. Rev. 
 Rec, 162; Fed. Cas. No. 16253a.) 
 
 Section 17 of the act of May 28, 1896 (29 Stat., 178), relative to 
 salaries of district attorneys, provides that the act is not to be so 
 construed as to prevent or affect the amount of taxation of costs against 
 the unsuccessful party in civil proceedings or against defendants con- 
 victed of crimes or misdemeanors. 
 
 Laws of the States, rules of decision. 
 
 Sec. 721. The laws of the several States, except where the Consti- 
 tution, treaties, or statutes of the United iStates otherwise require or 
 provide, shall be regarded as rules of decision in trials at common 
 law, in the courts of the United States, in cases where they apply. 
 
 The above provision is not applicable to proceedings in equity, or in 
 admiralty, or to criminal ofCenses against the United States. (Bucher 
 V. Cheshire Railroad Co., 125 U. S., 555.) 
 
 The courts of the United States are governed by the rules of the 
 common law, because the common law is in force in the State or Terri- 
 tory where the cause of action arose or is to be enforced, and not because 
 the common law has been adopted by the United States, or has under 
 the laws of the United States any binding force, except as being the law 
 of some State, Territory, or District. (United States r. Garlinghouse 
 et al., 11 Int. Rev. Rec, 11; Fed. Cas. No. 15189.) 
 
 Federal courts are bound to follow the decisions of the State courts 
 construing their own constitution or statutes. (Mooney v. Humphrey, 28 
 Int. Rev. Rec, 343.) 
 
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APPENDIX. 647 
 
 . How far deciskms of the highest courts of a State on State laws are 
 binding on Supreme ('ourt of United States. (Burgess v. Sellgman, 107 
 U. S., 20.) 
 
 See section 858, Revised Statutes, amended, page 643, as to laws of the 
 State being rules of decision as to competency of witnesses. 
 
 Practice conforms to forms and modes of proceeding In State courts. 
 
 Sec. Qli. The practice, pleadings, and forms and modes of pro- 
 ceeding in civil causes other than equity and admiralty causes, in the 
 .[circuit and] disti'ict courts, shall conform, as near as maj' be, to the 
 practice, pleadings, and forms and modes of proceeding existing at 
 the time in like causes in the courts of record of the State within 
 which such [circuit or] district courts are held, any rule of court to 
 the contrary notwithstanding. 
 
 The words in brackets inoperative on account of the abolition of circuit 
 courts. 
 
 Sage V. Tauszky (24 Int. Rev. Rec, 12; Fed. Cas. 12214). 
 
 In re Secretary of Treasury (45 Fetl., 396; Fed. Cas. No. 14837). 
 
 United States v. Collins (18 Int. Bev. Rec, 69). 
 
 Nudd V. Burrows (91 U. S., 441). 
 
 Trial upon an agreed statement of facts. Sections 649 and 700, R. S. 
 
 Proceedings on execution governed by State laws. 
 
 Sec. 916. The party recovering a judgment in any common-law 
 cause in any ; [circuit or] district court, shall be entitled to similar 
 remedies upon the same, by execution or otherwise, to i-each the 
 property of the judgment debtor, as are now jorovided in like causes 
 by the laws of the State in which such court is held, or by any such 
 laws hereafter enacted, which may be adopted by general rules of 
 such circuit or district court; and such courts may, from time to 
 time, by general rules, adopt such State laws as may hereafter be in 
 force in such State in relation to remedies upon judgments, as afore- 
 said, by execution or otherwise. 
 
 The words in brackets inoperative on account of the abolition of circuit 
 courts. 
 
 Collection of judgments for fines and penalties (sec. 1041). (Case of 
 Louis Teuscher, 23 Int. Rev. Rec, 202; Fed. Cas. No. 13846.) Poor con- 
 victs law (sec. 1042). 
 
 State exemption laws govern. (Fink v. O'Neil, 106 U. S. (16 Otto), 
 272 ; 28 Int. Rev. Rec, 405. ) 
 
 Homestead exemption. (Allen v. Clark, 126 Fed., 738, affirming 114 
 Fed., 374 and 117 Id., 679.) 
 
 .Judgment can not be opened at a term subsequent to that at which it 
 was entered. (Bronson v. Schulten, 104 U. S. (14 Otto), 410; 28 Int. 
 Rev. Rec, 231.) 
 
 .Judgment can not be vacated after the expiration of the term. (Forty 
 Fort Coal Co. v. Kirkendall, 233 Fed., 704. ) 
 
 If plaintiff and defendant agree, judgment may be set aside at a subse- 
 quent term. (Seat, administrator, v. United States, 18 Ct. Clms., 468.) 
 
 Not lawful to employ any part of the United States Army as a posse 
 comitatus. (Act June 18, 1878 (20 Stat., 152) ; 16 Op. Atty. Gen., 162.) 
 
 Redemption of lands sold under execution, local laws govern. ( Brine v. 
 Hartford Fire Insurance Co., 96 U. S., 627; 24 Int. Rev. Rec, 243.) 
 
 The United States circuit court, southern district of New York, made 
 an order for the examination of Robert Boyd to discover whether he 
 had property to satisfy judgment of the court. Boyd refused to testify 
 and was imprisoned for contempt of court. The Supreme Court was pe- 
 titioned for a writ of habeas corpus and certiorari. The circuit court was 
 sustained in proceedings in the matter in accordance with the laws of 
 
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648 APPENDIX. 
 
 the state of New York, under section 916. (Ex parte Boyd, 28 Int. Rev. 
 Rec, 232; 105 U. S., 647.) 
 
 Proceedings of marshal upon execution. (Sowles v'. Wlttfel-s,- 46 Fed., 
 497 ; Clr. No. 331, 35 Int. Rev. Rec, 197.) 
 
 Discharge from prison only releases offender from further imprison- 
 ment. The debt still stands and can be collected. (Allen v. Clark, 126 
 Fed., 738.) 
 
 Where Congress has provided a specific penalty, courts of equity can 
 not mitigate the hardship of the penalty or forfeiture or grant relief 
 running counter to the statutory requirement. (United States v. Dieck- 
 erhoff, 202 U. S., 303.) 
 
 The court has no authority to impose a fine only, where the law requires 
 fine and imprisonment. (United States v. Braun & Fltts, 158 Fed., 456; 
 Ex parte Karstendick, 93 U. S., 396.) 
 
 Exccnllons in favor of United States to rnn in CTcrj- State and Territory. 
 
 Sec. 986. AH writs of execution upon judgmeiits obtained for the 
 use of the United States, in any court thereof, in one State, may run 
 and be executed in any other State or in any Territory, but shall be 
 issued from, and made returnable to, the court wherein the judgment 
 was obtained. 
 
 14 Op. Atty. Gen., 384. 
 
 lodgment records and liens of Judgments. 
 
 AN ACT To regulate the liens of judgments and decrees of the courts of the 
 United States. (Act of August 1, 1888; 25 Stat., 357, as amended by act of 
 March 2, 1895; 28 Stat, 811) 
 
 Sec. 1. That judgments and decrees rendered in a circuit or district 
 court of the United States within any State, shall be liens on property 
 throughout such State in the same manner and to the same extent and 
 under the same conditions only as if such judgments and decrees had 
 been rendered by a court of general jurisdiction of such State: Pro- 
 vided, That whenever the laws of any State require a judgment or 
 decree of a State court to be registered, recorded, docketed, indexed, 
 or anj' other thing to be done, in a particular manner, or in a certain 
 office or county, or parish in the State of Louisiana before a lien shall 
 attach, this act shall be applicable therein whenever and only when- 
 ever the laws of such State shall authorize the judgments and decrees 
 of the United States courts to be registered, recorded, docketed, 
 indexed, or otherwise conformed to the rules and requirements re- 
 lating to the judgments and decrees of the courts of the State. 
 
 Sec. 2. That the clerks of the several courts of the United States 
 shall prepare and keep in their respective offices complete and con- 
 venient indices and cross-indices of the judgment records of said 
 courts, and such indices and records shall at all times be open to the 
 inspection and examination of the public. 
 
 Sec. 3. [Repealed bij Act of August 17, 1912 {37 Stat., 311.)'] 
 
 Lien of .Judgments in the Federal cotirtiS. (Dartmouth Savings Bank v. 
 Bates, 44 Fed., 546.) 
 
 United States not required to file lien under State laws. (United 
 States r. Snyder, et al., 39 Int. Rev. Rec, 189; 149 U. S., 210.) 
 
 Judgment liens not restricted by State statutes. (Carroll v. Watkins, 
 1 Abb. 474, Fed. Cas. No. 2457; United States v. Humphreys, Fed. Cas. 
 No. 15422, 3 Hughes, 201.) 
 
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APPENDIX. 649 
 
 lilent. 
 
 An act to amend an act entitled "An act to regulate the Hens of judgments and 
 decrees of the courts of the United States." (Approved Aug. 17, 1912; 37 
 Stat, 311.) 
 
 Be it enacted, etc., That section three of an act entitled "An act to 
 regulate the liens of judgments and decrees of the courts of the 
 United States," approved August first, eighteen hundred and eighty- 
 eight, be, and the same is hereby, repealed. 
 
 This act shall take effect on and after January first, nineteen 
 hundred and thirteen. 
 
 An act to repeal an act approved March 2, 1895, entitled "An act to amend 
 section 3 of an act entitled 'An act to regulate the liens of judgments and 
 decrees of the courts of the United States,' approved August 1, 1898." (Ap- 
 proved Aug. 23, 1916; 39 Stat., 531.) 
 
 Be it enacted, etc., That an act approved March second, eighteen 
 hundred and ninety-five, entitled "An act to amend section three of 
 an act entitled 'An act to regulate the liens of judgments and de- 
 crees of the courts of the United States,' approved August first, 
 eighteen hundred and eighty-eight," be, and the same is hereby, 
 repealed. 
 
 Sec. 2. That this act shall take effect on and after January first, 
 nineteen hundred and seventeen. 
 
 The purpose of this measure was to rectify the mistake when the act 
 of August 17, 1912, was passed in failing to repeal the act of 1895. 
 H. R. Rept. No. 205, 64th Cong., 1st sess. ; S. Rept. No. 744. 
 
 Interest. 
 
 Sec. 963. Upon all bonds, on which suits are brought for the re- 
 covery of duties, interest shall be allowed, at the rate of six per 
 centum a year, from the time when said bonds became due. 
 
 Sec. 966. Interest shall be allowed on all judgments in civil causes, 
 recovered in a circuit or district court, and may be levied by the mar- 
 shal under process of execution issued thereon, in all cases where, by 
 the law of the State in which such court is held, interest may be levied 
 under process of execution on judgments recovered in the courts of 
 such State, and it shall be calculated from the date of the judgment, 
 at such rate as is allowed by law on judgments recovered in the 
 courts of such State. 
 
 An act of Congress giving interest on judgments does not include the 
 Government unless expressly named or so intended by clear inference. 
 (First Comptroller's Opinion in Stephani's Case, 26 Int. Rev. Rec, 313, 
 and cases there cited ; United States ex rel. v. John Sherman, Secretary 
 of the Treasury, 98 U. S., 567 ; 25 Int. Rev. Rec, 198. ) 
 Angarica v. Bayard (127 U. S., 251). 
 Schell V. Cochran (107 U. S., 625). 
 
 Interest on taxes. (See under sees. 3185, p. 117, and .3214, p. 134.) 
 Interest on claims against United States. ( See under sec. 3220, p. 137. ) 
 Interest in suits against officers upon adjustment of accounts. (See 
 sec. 3624, p. 666.) 
 
 Interest on judgments in Court of Claims. (See sec. 1090.) 
 Interest only from commencement of the suit when there has been 
 unreasonable delay in prosecuting the claims (Sanborn v. United States, 
 135 U. S., 271; 36 Int. Rev. Rec, 142; Wightman v. United States, 23 
 Ot. Cls., 143.! 
 
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650 APPEKDIX. 
 
 Interest on judgments. State law governs. (T. Ds. 1016, 1017.) 
 Interest on judgments against United States under the Tucker Act 
 
 4§ per cent from date ol flnal judgment until appropriation is made. 
 
 Section 10, act of March 3, 1887. (19 Comp. Dec, 152.) 
 
 Circuit Court of Appeals. 
 
 An act to establisli circuit courts of appealg and to define and regulate in cer- 
 tain cases the jurisdiction of the courts of the United States, and for other 
 purposes. (Act of Mar. 8, 1891; 26 Stat, 827.) 
 
 Circuit courts of appeal were created by the act of March 3, 1891, with 
 substantially the same jurisdiction described in chapter 6 of the Judicial 
 Code. 
 
 The jurisdiction of the circuit court of appeals is wholly appellate and 
 Is governed by the Judicial Code. (Act of Mar. 3, 1911, sec. 129, et seq.) 
 
 The judgments and decrees of the circuit courts of appeals are final in 
 all cases under the revenue laws (sec. 128 of the Judicial Code, act of 
 Mar. 3, 1911), and can only be carried to the Supreme Court by certifi- 
 cate or certiorari. (American Sugar Refining Co. v. United States, 211 
 U. S., 155.) 
 
 Writ of certiorari, effect of dismissing petition for. (Anderson v. 
 Moyer, 193 Fed., 499.) 
 
 The Tucker Act of March 3, 1887 (24 Stat., 505), as amended by act of 
 June 27, 1898, and act of July 1, 1898, provided for bringing suit against 
 the United States on certain classes of claims and giving jurisdiction to 
 the Court of Claims concurrent with that court to the district courts and 
 circuit courts, respectively, and was incorporated in the Judicial Code 
 and the act repealed, except sections 4-7, 10. {See. 297, Judicial Code, 
 act of Mar. 3, 1911; 36 Stat, 1087.) 
 
 " Suits under act of March 3, 1887, or paragraph 20, section 24, Judicial 
 Code, to be tried without a jury. 
 
 In suits under act of March 3, 1887, against United States, in case of 
 adverse judgment, question of appeal to be determined by the Attorney 
 General. (Sec. 10.) 
 
 The Bowman Act of March 3, 1883 (22 Stat., 485), provided for trans- 
 mission by the executive departments to the Court of Claims for find- 
 ing of facts, etc., was incorporated in the Judicial Code (sec. 148) and 
 the act repealed. (Sec. 297, Judicial Code, act of Mar. 3, 1911; 36 Stat., 
 1087.) 
 
 Circuit Court of Appeals has no jurisdiction of suit by one railroad 
 company against another and a collector of internal revenue to determine 
 liability for income tax on certain dividends as between the two com- 
 panies, where the controversy depends wholly on construction of lease 
 executed by plaintiff railroad to defendant, both being citizens of New 
 York, whose courts may determine controversy, unless collector should 
 remove case under section 33 of Judicial Code. (Rensselaer & Saratoga 
 R. Co. V. Delaware & Hudson Co., 257 Fed., 555.) 
 Writs of error and appeals. 
 
 Sec. 11. [Act of March S, 1891 {26 Stat. 829). '\ That no appeal 
 or writ of error by which any order, judgment, or decree may be re- 
 viewed in the circuit court of appeals under the provisions of this 
 act shall be taken or sued out except within six months after the 
 entry of the order, judgment or decree sought to be reviewed : Pro- 
 vided, however, That in all cases in which a lesser time is now by 
 law limited for appeals or writs of error such limits of time shall 
 apply to appeals or writs of error in such cases taken to or sued out 
 from the circuit courts of appeals. 
 
 No appeal or writ of error, by which any order, judgment, or decree 
 may be reviewed in the circuit court of appeals, shall be taken or sued out 
 except within six months after the entry of the order, judgment, or 
 decree. ( Siegelschiffer v. Penn. Mut Life Ins. Co., 248 Fed., 226; Col- 
 lins V. Huftman, 245 Fed., 20; Rutan v. Johnson, 130 Fed., 109.) 
 
 The statutory time for taking appeals is prescribed by act of Congress, 
 and can not be extended by order of the court. (Old Nick Williams Co. 
 V. United States, 2SSgltizBtJ i^.MicrOSOft® 
 
APPENDIX. 651 
 
 Writs of error and appeals to Supreme Court. 
 
 Sec. 6. [Act of September 6, 1916 {39 Stat. 726) . J That no writ of 
 error, appeal or writ of certiorari intended to bring up any cause for 
 review by the Supreme Court shall be allowed or entertained unless 
 duly applied for within three months after entry of the judgment or 
 decree complained of: Provided, that writs of certiorari addressed 
 to the Supreme Court of the Philippine Islands may be granted if 
 application therefor be made within six months. 
 
 An internal revenue case may be taken to the Supreme Court when the 
 constitutionality of an act of Congress is involved. (Spreckels Sugar 
 Refining Co. v. McClain, 192 V. S., 397 ; T. D. 760.) 
 
 Appeals and writs of error may be taken from district courts direct to 
 the Supreme Court in the cases mentioned in section 238, Judicial Code, 
 amended by act of January 28, 1915. (38 Stat., 804.) 
 
 An act to provide for writs of error or appeals to the Supreme Court of 
 the United States in all cases involving the question of the jurisdiction 
 of the court below. (Act of February 25, 1889; 25 Stat, 693.) Section 
 238, " Judicial Code." 
 
 As to Alaska, the act of June 6, 1900, section 504 (31 Stat., 414) pro- 
 vides that appeals and writs of error may be taken from the district 
 court directly to the Supreme Cou^rt in five classes of cases. Section 247, 
 " Judicial Code." 
 
 In Porto Rico (act of April 12, 190O; 31 Stat., 84) there is established 
 a district court of the United States with jurisdiction of circuit courts of 
 the United States. It is provided that writs of error and appeal from the 
 final decisions of the supreme court of Porto Rico and the district court 
 of the United State.? shall be allowed and may be taken to the Supreme 
 Court of the United States in the same manner and under the same regu- 
 lations and in the same cases as from the supreme courts of the Terri- 
 tories ; " and such writs of error and appeal shall be allowed in alll cases 
 where the Constitution of the United States or a treaty thereof or an act 
 of Congress is brought in question and a right claimed thereunder is 
 denied." Section 244, " Judicial Code." 
 
 Writs of error and appeals from Supreme Court of Porto Rico may be 
 taken to circuit court of appeals and United States Supreme Court as 
 now provided. Section 43, act of March 2, 1917. (39 Stat., 966.) 
 
 Virgin Islands. Appeals and writs of error to circuit court of appeals, 
 third circuit, act of JIarch 3, 1917. (39 Stat., 1132.) 
 
 Cases from Alaska and Hawaii are reviewable in the circuit court of 
 appeals for the ninth circuit under sections 134 and 128 and 116', respec- 
 tively, of the Judicial Code, and cases from the district court of Porto 
 Rico are reviewable in the circuit court of appeals for the first circuit 
 under the provisions of the act of January 25, 1915. (38 Stat., 803. ) 
 
 Distinction between an appeal and writ of error. (United States v. 
 Diamond Match Co., 115 Fed., 288.) 
 
 Writs of error in criminal cases allowed by United States to Supreme 
 Court on demurrers to indictment where decision was based on the in- 
 validity or construction of the statute upon which the indictment was 
 found. Act of March 2, 1917 ; 34 Stat., 1246. (United States v. Stevenson, 
 215 U. S., 190.) 
 
 A judgment of aflirmance by a divided appellate court conclusively 
 settles the rights of the parties in the particular litigation but does not 
 establish a precedent in the court which renders it, and does not control 
 inferior tribunals in other cases. (Westhus v. Union Trust Co., 168 Fed., 
 617.) 
 
 Afiirmances by the Supreme Court by reason of the court being equally 
 divided settle no principle of law. (Kinney v. Conant, 166 Fed., 720.) 
 
 Certifying questions to the Supreme Court. Authority of circuit court 
 of appeals to certify questions to the Supreme Court. (Dickinson v. 
 United States, 174 Fed., 808 ; Railway Co. v. Pope, 74 Fed., 1 ; Andrews v. 
 National Foundry & Pipe Works, 77 Fed., 774; Pullman Pal. Car Co. t'. 
 Cent. Transp. Co., 83 Fed., 1.) 
 
 Questions certified must be distinct questions of law clearly stated. 
 (Graves v. Faurot, 162 U. S.. 435; United States v. Union Pacific Ry. Co., 
 168 U. S., 505.) _. ... . . ... „^ 
 
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652 APPENDIX. 
 
 The Supreme Court deals only with the facts certified. (Stratton's 
 Independence v. Howbert, 231 U. S., 399 ; T. D. 1913.) 
 
 The circuit court of appeals at any time may certify to the Supreme 
 Court of the United States any questions or propositions of law concern- 
 ing which it desires the instruction of that court, or the Supreme Court 
 may by certiorari require any case to be certified to the Supreme Court 
 for review. (United States v. Union Pac. Ey. Co., 168 U. S., 505 ; United 
 , States V. Felsenheld, 186 U. S., 126; T. D. 525.) 
 
 Primary object of act establishing circuit courts of appeals. (American 
 Construction Co. v. Jacksonville Railway Co., 148 U. S., 372.) 
 
 Act establishing the circuit court of appeals, with annotation of deci- 
 sions. (90 Fed. introduction.) 
 
 In none of the provisions of the act establishing the circuit courts of 
 appeals, defining the appellate jurisdiction, either of the Supreme Court 
 or of the circuit courts of appeals is there any indication of an intention 
 to confer upon the United States the right to take up a criminal case of 
 any grade after judgment below in favor of the defendant. (United 
 States V. Sanges, 144 U. S. 323; United States v. Dickinson, 213 U. S., 
 92.) 
 
 Sec. 1008. No judgment, decree or order of a [circuit or] district 
 court, in any civil action, at law or in equity, shall be reviewed in the 
 Supreme Court, on writ of error or appeal, unless the writ of error is 
 brought, or the appeal is taken within two years after the entry of 
 such judgment, decree, or order: 
 
 Provided, That where a party entitled to prosecute a writ of error, 
 or to take an appeal is an infant, insane person or imprisoned, such 
 writ of error may be prosecuted, or such appeal may be taken, within 
 two years after the judgment, decree, or order, exclusive of the term 
 of such disability. 
 
 The words in brackets [circuit or] became inoperative on the abolition 
 of circuit courts by the Judicial Code. 
 
 Section 11, act of March 3, 1891 ; " that no appeal or writ of error, 
 by which any order, judgment, or decree may be reviewed in the cir- 
 cuit court of appeals, under the provisions of this act, shall be taken 
 or sued out except within six months after the entry of the order, judg- 
 ment, or decree sought to be reviewed." (Rutan v. Johnson, 130 Fed., 
 109.) 
 
 Appeals or writs of error to review a judgment of a circuit court of 
 appeals must be sued out within 1 year. (Sec. 6, act of Mar. 3, 1891, 
 26 Stat., 826.) 
 
 The statutory time for taking appeals is prescribed by act of Con- 
 gress, and can not be extended bv order of the court. (Old Nick Wil- 
 liams Co. V. United States, 215 U. S., 541.) 
 
 An internal revenue case may be taken from the circuit court to the 
 circuit court of appeals, and from there to the Supreme Court when the 
 eonstitutionalitv of an act of Congress is involved. (Spreckels Sugar 
 Refining Co. v. McClain, 192 U. S., 397; T. D. 760.) 
 
 Appeals from Court of Claims to Supremo Court. 
 
 Sec. 243. [Act of March S, 1911, '' JiidicM Code" {36 Stat., 
 1087).'] All appeals from the court of claims shall be taken within 
 ninety days after the judgment is rendered, and shall be allowed 
 under such regulations as the Supreme Court may direct. 
 
 Section 708, R. S., reenacted. 
 
 A judgment of the court of claims from which no appeal is taken is 
 just as conclusive as a decision of the Supreme Court. (United States v. 
 O'Grady, 22 Wall., 641.) 
 
 No bond required of tnitcd States, etc. 
 
 Sec. 1001- Whenever a writ of error, appeal or other process in 
 law, admiralty, or equity, issues from or is brought up to the Su- 
 preme Court, or a (&iginiemSfWli&)^fmft^y the United States or 
 
APPENDIX. 653 
 
 by direction of any Department of the Government, no bond, obliga- 
 tion, or security shall be required from the United States, or from 
 any party acting under the direction aforesaid, either to prosecute 
 said suit, or to answer in damages or costs. In case of an adverse 
 decision, such costs as by law are taxable against the United States, 
 or against the party acting by direction as aforesaid, shall be paid 
 out of the contingent fund of the Department under whose directions 
 the proceedings were instituted. 
 
 The United States, when a plaintife in a civil action, is entitled to the 
 writ of attachment, and is relieved by section 1001 from giving the usual 
 undertaking in such, cases. (United States r. Ottmon, 23 Int. Kev. 
 Eec, 294.) 
 
 Statute of limltaUons. 
 
 Sec. 1046. No person shall be prosecuted, tried, or punished for 
 any crime arising under the revenue laws, * * * unless the in- 
 dictment is found or the information is instituted within five years 
 next after the committing of such crime. 
 
 Sec. 1047. No suit or prosecution for any penalty or forfeiture, 
 pecuniary or otherwise, accruing under the laws of the United 
 States, shall be maintained, except in cases where it is otherwise 
 specially provided, unless the same is commenced within five years 
 from the time when the penalty or forfeiture accrued: Provided, 
 That the person of the offender, or the property liable for such 
 penalty or forfeiture, shall, within the same period, be found within 
 the United States; so that the proper process therefor may be in- 
 stituted and served against such person or property. 
 
 An act to limit the time within which prosecutions may be instituted against 
 persons charged with violating internal-revenue laws. (Act of July 5, 
 1884; 23 Stat, 122). 
 
 That no person shall be prosecuted, tried, or punished for any of 
 the various offenses arising under the internal revenue laws of the 
 United States unless the indictment is found or the information in- 
 stituted within three years next after the commission of the offense, 
 in all cases where the penalty prescribed may be imprisonment in 
 the penitentiary, and within two years in all other cases : 
 
 Provided, That the time during which the person committing the 
 offense is aibsent from the district wherein the same is committed 
 fc-hall not be taken as any part of the time limited by law for the 
 commencement of such proceedings : 
 
 Provided further, That the provisions of this act shall not apply 
 to offenses committed prior to its passage : 
 
 And provided further. That where a complaint shall be insti- 
 tuted before a commissioner of the United States within the period 
 above limited, the time shall be extended until the discharge of the 
 grand jury at its next session within the district: 
 
 And provided further, That this act shall not apply to offences 
 committed by officers of the United States. 
 
 Suits for taxes can be brought at any time. (See decisions quoted 
 under sec. 3213, p. 132.) 
 
 Limitation of time within which suits must be brought against sure- 
 ties on official bonds five years. ( See act of Aug. 8, 1888, p. 618. ) 
 
 States can not pass statutes of limitation binding on the Federal 
 Government. (United States v. Thompson et al., 98 U. S., 486 ; 25 Int. 
 Rev. Rec, 143; United States v. Pitts, 197 Fed., 1007.) 
 
 United States not bound by any statute of limitations unless Con- 
 gress has clearly i£3l^ffi^J!i^/tito!Bi(SCiSf®ia:t they should be so bound. 
 
654 APPENDIX. 
 
 (United States v. NashviUe Railroad Co., 318 U. S., 125; United States 
 V. Beebe, 127 U. S., 354.) 
 
 The limitation laws of the State in which the suit is brought do 
 not furnish the rule for determining whether the action is brought in 
 time. (Arnson v. Murphy, 109 U. S,, 238.) 
 
 When the United States voluntarily appear in a court of justice, 
 they at the same time submit to the law and place themselves upon an 
 equality vnth other litigants; but this does not apply to such defenses 
 as laches and the statute of limitations. (United States v. Ingate, 
 1891, 48 Fed., 251; The Purcell Envelope Co. v. United States, 47 Ct. 
 CIS., 1.) 
 
 No officer of the Government authorized to waive statute, page 148, 
 note. 
 
 Certificate of probable caose. 
 
 Sec. 970. When, in any prosecution commenced on account of the 
 seizure of any ^'essel, goods, wares, or merchandise, made by any col- 
 lector or other officer, under any act of Congress authorizing such 
 seizure, judgment is rendered for the claimant, but it appears to the 
 court that there was reasonable cause of seizure, the court shall cause 
 a proper certificate thereof to be entered, and the claimant shall not, 
 in such case, be entitled to costs, nor shall the person who made the 
 seizure, nor the prosecutor, be' liable to suit or judgment on account of 
 such suit or prosecution : Provided, That the vessel, goods, wares, or 
 merchandise be, after judgment, forthwith returned to such claimant 
 or his agent. 
 
 The decision of the court below refusing certificate of probable cause 
 not reviewable by circuit or Supreme Court. (United States t'. Abattoir 
 Place, 106 U. S., 160.) 
 
 Execution not to issue against officers of reTenoe in cases of prolwble cause, etc. 
 
 Sec. 989. When a recovery is had in any suit or proceeding against 
 a collector or other officer of the revenue for any act done by him, or 
 for the recovery of any money exacted by or paid to him and by him 
 paid into the Treasury in the performance of his official duty, and the 
 court certifies that there was probable cause for the act done by the 
 collector or other officer, or that he acted under the directions of the 
 Secretary of the Treasury, or other proper officer of the Government, 
 no execution shall issue against such collector or other officer, but the 
 amount so recovered shall, upon final judgment, be provided for and 
 paid out of the proper appropriation from the Treasury. 
 
 Section 3220, page 137. Payment of judgments against collectors. 
 (United States v. Frerichs, 124 U. S., 315; 34 Int. Rev. Rec., 39.) 
 
 Protection afforded to officers by certificate of probable cause. (Averill 
 V. Sxaith, 17 Wall., 82 ; 17 Int. Rev. Rec, 171. Stacy v. Emery, 97 U. S. 
 (7 Otto), 642 ; 24 Int. Rev. Rec, 378. Dunnagan v. United States, 17 Ct. 
 Cls., 217; 28 Int. Rev. Rec 144.) 
 
 Certificate of probable cause relieves the collector from the execution 
 which would follow according to ordinary legal procedure. (Conant v. 
 Kinney, 162 Fed., 581.) 
 
 Where such certificate is given the claim of the plaintilf is practically 
 converted into a claim against the Government and no interest can be 
 allowed in the judgment. (United States r. .John Slierman, 25 Int. Rev. 
 Rec, 198; 98 U. S., SS?.:- 
 
 Certificate of probable cause converts the claim against collector into 
 claim against United States. (Klock Produce Co. v. Hartson, 212 Fed., 
 758.) 
 
 Bemlsslon of Anes, youaltles, and forfeltnres. 
 
 Sec. 5292. [Amended hy Act of Pelruary ^7, 1877 (19 Stat., 252).] 
 Whenever any person^^^jl Wa mcuKred any fine, penalty, or 
 
APPENDIX. 655 
 
 forfeiture, or disability, or maj be interested in any vessel or mer- 
 chandise which has become subject to any seizui-e, forfeiture, or disa- 
 bility by authority of any provisions of law for imposing or collecting 
 any duties or taxes * * * and for regulating the same * * * 
 shall prefer his petition to the judge of the district in which such 
 fine, penalty, or forfeiture, or disability has accrued, truly and partic- 
 ularly setting forth the circumstances of his case, and shall pray that 
 the same may be mitigated or remitted, the judge shall inquire, in a 
 summary manner, into the circumstances of the case; first causing 
 reasonable notice to be given to the person claiming such fine, penalty, 
 or forfeiture, and to the attorney of the United States for such dis- 
 trict, that each may have an opportunity of showing cause against 
 the mitigation or remission thereof ; and shall cause the facts appear- 
 ing upon such inquiry to be stated and annexed to the petition, and 
 direct their transmission to the Secretary of the Treasury. The Sec- 
 retary' shall thereupon have power to mitigate or remit such fine, for- 
 feiture, or penalty, or remove such disability, or any part thereof, if, 
 in his opinion, the same was incurred without willful negligence, or 
 any intention of fraud in the person incurring the same ; and to direct 
 the prosecution, if any has been instituted for the recovery thereof, 
 to cease and be discontinued, upon such terms or conditions as he 
 maj' deem reasonable and just. 
 
 Sec. 5293. [Amended ly Act of Fehrmry 27, 1877 {19 Stat., £S3) .] 
 The Secretary of the Treasury is authorized to prescribe such rules 
 and modes of proceeding to ascertain the facts upon which an appli- 
 cation for remission of a fine, penalty, or forfeiture is founded, as he 
 deems proper, and, upon ascertaining them, to remit the fine, penalty, 
 or forfeiture, if in his opinion it was incurred without willful negli- 
 gence or fraud, in either of the following cases : 
 
 First. If the fine, penalty, or forfeiture was imposed under author- 
 itj' of any revenue law, and the amount does not exceed one thou- 
 sand dollars. 
 
 Second. Where the case occurred within either of the collection 
 districts in the States of California or Oregon. 
 
 Third. If the fine, penalty, or forfeiture was imposed under au- 
 thority of any provisions of law relating to the importation of mer- 
 chandise from foreign contiguous territory * * *. 
 
 Fourth. * * * 
 
 Fifth. If the fine, penalty, or forfeiture was imposed by authority 
 of any provisions of law for levying or collecting any duties or 
 taxes, w * * and the case arose within the collection district of 
 Alaska, * * *. 
 
 Sec. 5295. Any officer or other person entitled to or interested in 
 a part or share oi any fine, penalty, or forfeiture incurred under any 
 law of the United States, may be examined as a witness in any of the 
 proceedings for the recovery of such fine, penalty, or forfeiture by 
 either of the parties thereto, and such examination shall not deprive 
 such witness of his share or interest in such fine, penalty, or for- 
 feiture. 
 
 The Secretary of the Treasxiry has authority to remit or mitigate fines, 
 penalties, or forfeitures and to remove disabilities before or after judg- 
 ment or decree, and until the money is actually paid into the Treasury, 
 (United States _v. Morris, 10 Wheat, 246.) 
 
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656 APPENDIX, 
 
 The Government is not liable for the torts of its officers. (Hart v. 
 United States, 95 U. S., 318; Langford v. United States, 101 U. S., 346; 
 United States v. Cummings et al., 35 Int. Rev. Rec, 142, 130 U. S., 453.) 
 
 State of Maine v. United States (36 Ct. Cls., 532). See notes under 
 section 3220,. page 137. (Thierman & Frost r. United States, 51 Ct 
 Cls., 3.5.) 
 
 The order of the Commissioner to the collector of the district directing 
 him to make a seizure is in law a reasonable causei and a protection to 
 him against damages for such action. Sections 970 and 989, Revised 
 Statutes, are both existing laws and not Inconsistant or repugnant. 
 (Agnew V. Haymes, 141 Fed., 631; T. D. 955.) 
 
 Property taken nnder Te?enne laTrs iirepIeTlable, 
 
 Sec. 934. All property taken or detained by any officer or other per- 
 son, under authority of any revenue law of the United States, shall 
 he irrepleviable, and shall be deemed to be in the custody of the law, 
 and subject onlj^ to the orders and decrees of the courts of the United 
 States having jurisdiction thereof. 
 
 Brice et al. v. Elliott. (22 Int. Rev. Rec, 206; Fed. Cas. No. 1854.) 
 
 Conflict of State and United States officers. (14 Op. Atty. Gen., 370; 
 19 Int. Rev. Rec, 73; Buck v. Colbath, 3 Wall., 334.) 
 
 Goods in the hands of the United States held for taxes can not be 
 attached by State officers. (Harris v. Dennie, 3 Pet., 292; McCuUough v. 
 Large, 30 Int. Rev. Rec, 166.) 
 
 Where release or destruction of property is directed, action taken 
 should be reported and complete description given of property released 
 or destroyed. (T. D. 1696.) 
 
 Seizure of automobile as having been used in unlawful introduction of 
 
 liquor vests Federal court with exclusive jurisdiction over machine for 
 
 forfeiture proceedings, which is not affected by subsequent seizure under 
 
 writ of replevin of State court. (Ford v. United States, 260 Fed., 657.) 
 
 Compromises of claims and of cases after jodgment. 
 
 Sec. 3469. Upon a report by a district attorney, or any special 
 attorney or agent having charge of any claim in favor of the United 
 States, showing in detau the condition of such claim, and the terms 
 upon which the same may be compromised, and recommending that 
 it be compromised upon the terms so offered, and upon the recom- 
 mendation of the Solicitor of the Treasury, the Secretary of the 
 Treasury is authorized to compromise such claim accordingly. But 
 the provisions of this section shall not apply to any claim arising 
 under the postal laws. 
 
 Compromise of internal-revenue cases before judgment. (Sec. 3229, 
 p. 149.) 
 
 Uncertainty whether the Government can obtain a verdict proper 
 ground for compromise. (16 Op. Atty. Gen., 259.) 
 
 Forfeited recognizances. (18 Op. Atty. Gen., 277.) 
 
 Section 3469 does not extend to fines in criminal cases. (United States 
 V. George et al., 6 Blatch., 406; 12 Op. Atty. Gen., 543; 13 Id., 479.) 
 
 Compromise of solvent claims. (16 Op. Atty. Gen., 617; 25 Int. Rev. 
 Rec, 29.) 
 
 Contra. (MacVeagh, 27 Int. Rev. Rec, 334; 17 Op. Atty. Gen., 213.) 
 
 A claim can not be compromised of whose collectibility in full there is 
 no doubt (Harmon). (21 Op. Atty. Gen., 264.) 
 
 See also 23 Op. Atty. Gen., 18, 633 ; 29 Id., 217. 
 
 Government's claim to real property can not be compromised. (16 
 Op. Atty. Gen., 385.) 
 
 No power to compromise taxes. (Dorsheimer c. United States, 74 
 U. S. (7 Wall.), 166; 10 Int. Rev. Rec, 131; 2 Ct. Cls., 103.) 
 
 No authority to compromise cases under section 32, act of .luly 24, 
 1897. 
 
 The Attorney General may, however, compromise or settle such cases. 
 (T D 21270 ) 
 
 Offers Of comvrM&iizei^e^idMM^^S^ar No. 39, 1914. 
 
■APPENDIX. 657 
 
 Where aotion- is brought for jienalty, jury's verdict must fix amount of 
 peniilty not less than the minimum, after ^yhich only remedy, other than 
 appeal, is application for compromise. (United States v. Acorn Roof- 
 ing Co., 204 Fed., 157.) 
 
 Bcmlssion. 
 
 Tlie Secretary of the Treasury has authority to remit or mitigate fines, 
 penalties, or forfeitures and to remove disabilities before or after judg- 
 ment or decree, and until the monev is actually paid into the Treasury. 
 (United States o. Morris, 10 Wheat., 246; sees. .5292, 5293, R. S.) 
 
 The p<j\ver to remit penalties is intrusted to the Secretary of the Treas- 
 ury alone, and there is no appeal from liis decision. 
 
 Pardons. 
 
 The President's power under the Constitution to grant pardons (Art. 
 II, sec. 2) includes the power of remitting fines, penalties, and for- 
 feitures. (Ex parte Garland, 4 Wall., 333.) 
 
 Effect of pardon. ( Weimer r. Reynolds, 24 Int. Rev. Rec, 372 ; Knote 
 V. United States, 95 U. S., 149; 24 Int. Rev. Rec, 4; United States v. 
 McKee, 23 Id., 338; Fed. Cas. No. 15688.) 
 
 Pardon of officer bar to an action on official bond assigning same act 
 as a breach. (United States i'. Cullerton, 24 Int. Rev. Rec, 68; Fed. 
 Cas. No. 14899.) 
 
 Pardon releases property .seized for same offense. (Osborn c. United 
 States, 91 U. S. (1 Otto), 474.) 
 
 Does not relieve from tax. (United States v. Roelle et al.. 24 Int. Rev. 
 Rec, 332; Fed. Cas. No. 16186.) 
 
 A pardon is not complete until delivery. (In re Moses De Puy, 10 Int. 
 Rev. Rec, 34; Fed. Cas. No. 3814.) 
 
 Act providing for parole of United States prisoners. Act of June 25, 
 1910 (36 Stat., 819). Act of January 23, 1913 (37 Stat., 650). 
 
 A court has no authority to permanently suspend sentence in a criminal 
 case. (Ex parte United States, petitioner, 242 U. S., 27.) 
 
 After conviction or plea of guilty court has no power to indefinitely 
 suspend imposition of sentence or indefinitely suspend execution thereof. 
 (Department of Justice Cir. No. 517; instructions to United States' 
 attorneys June 1, 1916.) 
 
 Emidoyment of attorneys or counsel. 
 
 Sec. 189. No head of a department shall employ attorneys or coun- 
 sel at the expense of the United States, but when in need of counsel or 
 advice shall call upon the Department of Justice, the officers of which 
 shall attend to the same. 
 
 Opinions of the Attorney General ; the effect of his advice. ( 5 Op. Atty. 
 Gen., 97; 6 Id., 3.34; 7 Id., 699; 9 Id., 37.) 
 
 Questions of pure law actually arising in the administration of the 
 Treasury Department, and requiring the personal consideration of the 
 Secretary, may be referred to the Solicitor of the Treasury or to the 
 Attorney General. If referred to the latter, however, his answer should 
 be regarded by the department as law until withdrawn by him or over- 
 ruled by the courts. (20 Op. Atty. Gen., 655.) 
 
 A request for an opinion must not relate to a mere moot question. 
 (21 Op. Atty. Gen., 509.) 
 
 There should be a case actually arising. (24 Op. Atty. Gen., 59; 27 
 
 Id., 49.) 
 
 The Attorney General does not possess the power to revise the decisions 
 of an executive department. (3 Op. Atty. Gen., 39.) 
 
 Will not interfere in a matter of administrative policy. (28 Op. Atty. 
 Gen., 127.) 
 
 Attorney General to prOTlde counsel on InrestlgaUon of claims. 
 
 Sec. 364. Whenever the head of a Department or Bureau gives the 
 Attorney-General due notice that the interests of the United States 
 
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658 APPENDIX. 
 
 require the service of counsel upon the examination of witnesses 
 touching any claim, or upon the legal investigation of any claim, 
 pending in such Department or Bureau, the Attorney-General shall 
 provide for such service. 
 
 AN ACT To authorize the commencement and conduct of legal proceedings 
 under the direction of the Attorney General. (Approved, June 30, 1906; 
 34 Stat, 816.) 
 
 That the Attorney-General or any officer of the Department of 
 Justice, or any attorney or counselor specially appointed by the 
 Attorney-General under any provision of law, may, when thereunto 
 specifically directed by the Attorney-General, conduct any kind of 
 legal proceeding, civil or criminal, including grand jury proceedings 
 and proceedings before committing magistrates, which district attor- 
 neys now are or hereafter may be by law authorized to conduct, 
 whether or not he or they be residents of the district in which such 
 proceeding is brought. 
 
 Duties of district attorneys to prosecnte and to appear for coUectors, etc. 
 
 Sec. 771. It shall be the duty of every district attorney to prose- 
 cute, in his district, all delinquents for crimes and offenses cognizable 
 under the authority of the United States, and all civil actions in 
 which the United States are concerned, and, unless otherwise in- 
 structed by the Secretary of the Treasury, to appear in behalf of the 
 defendants in all suits or proceedings pending in his district against 
 collectors, or other officers of the revenue, for any act done by them 
 or for the recovery of any money exacted by or paid to such officers, 
 and by them paid into the Treasury. 
 
 " Infamous " crimes can not be prosecuted by information. " No per- 
 son shall be held to answer for a capital or otherwise infamous crime, 
 unless on a presentment or indictment of a grand jury, except in cases 
 arising in the land or naval forces," etc. (Constitution, fifth amend- 
 ment.) 
 
 Imprisonment at hard labor for a term of years is an infamous pun- 
 ishment. (Wilson ex parte, 114 U. S., 417 ; 31 Int. Rev. Rec, 224.) 
 
 A crime punishable by imprisonment in a state's prison or penitentiary 
 with or without hard labor is an " infamous " crime. (Mackin v. United 
 States, 117 U. S., 348.) 
 
 It is the duty of a district attorney to prosecute suits to enforce against 
 certain property the statutory lien for internal- revenue taxes. (Bliss v. 
 United States, 37 Fed., 191.) 
 
 Duty of Government to defend its officers when sued for doing what 
 the law requires. (9 Op. Atty. Gen., 52.) 
 
 The act of March 3, 1887 (24 Stat., 505), Sec. 6, providing for the bring- 
 ing of suits against the Government in the United States district and 
 circuit courts, makes it the duty of the district attorney to appear and 
 defend the interests of the Government in such suits and within sixty 
 days after the service of petition upon him to file a plea, answer, or de- 
 murrer on thfe part of the Government, and notice of any set-off or counter 
 claim. 
 
 Suits by or against oflBeers not to abate on their death, resignation, 
 or expiration of their term of office. (Act of February 8, 1899, 30 Stat., 
 822 ) 
 
 By the acts of June 27, 1898, and July 1, 1898, the right of Government 
 ofllcers to bring suits in the circuit and district courts for their fees or 
 salaries was repealed, thus removing what had been found to be a serious 
 difficulty in the workings of the act of March 3, 1887. 
 
 Attorneys defending employees of the Government. (22 Compt. Dec, 
 
 264. ) Digitized by Microsoft® 
 
APPENDIX. 659 
 
 District attorneTS to report to Commissioner of Internal Bevenne. 
 
 Sec. 774. When any suit or proceeding arising under the internal- 
 revenue laws, to which the United States are party, or any suit or pro- 
 ceeding against a collector or other officer of the internal revenue, 
 wherein a district attorney appears, is commenced, the attorney for 
 the- district in which it is brought shall immediately report to the 
 Commissioner of Internal Eevenue the full particulars relating to the 
 same; and he shall, immediately after the end of each term of the 
 court in which such suit or proceeding is pending, forward to the said 
 Commissioner a full and particular statement of its condition. 
 
 Duty of Commissioner to make regulations for observance of district 
 attorneys and marshals. (Sec. 3215, p. 134.) 
 Regulations No. 12, revised. 
 
 Dntf of district attorneys as to prosecution and reports. 
 
 Sec. 838. It shall be the duty of every district attorney to whom 
 any collector of customs, or of internal revenue, shall report, accord- 
 ing to law, any case in which any fine, penalty, or forfeiture has been 
 incurred in the district of such attorney for the violation of any law 
 of the United States relating to the revenue, to cause the proper pro- 
 ceedings to be commenced and prosecuted without delay, for the 
 fines, penalties, and forfeitures in such case provided, unless, upon 
 inquiry and examination, he shall decide that such proceedings can- 
 not probably be sustained, or that the ends of public justice do not 
 require that such proceedings should be instituted ; in which case he 
 shall report the facts in customs cases to the Secretary of the Treas- 
 ury, and in internal revenue cases to the Commissioner of Internal 
 Eevenue for their direction. 
 
 That portion of this section referring to compensation of district attor- 
 neys is omitted, as made Inoperative by the act of May 28, 1896. (29 
 Stat, 178.) 
 
 buty of collectors to report violations of law to district attorneys. 
 (See. 3164, p. 94.) 
 
 Reports of marshals. — Marshals are required to report proceedings 
 under process issued to them in internal-revenue cases. (Regulations 
 No. 12, revised, p. 17.) 
 
 Instructions to report status of judgment debtors. (T. D. 703.) 
 
 Warrants of arrest. 
 
 Sec. 19. [Act of May B8, 1896 {29 Stat, 18^), reenacted ly aot 
 March 2, 1901 {31 Stat., 966).'] * * * Warrants of arrest for 
 violations of internal-revenue laws may be issued by United States 
 commissioners upon the sworn complaint of a United States district 
 attorney, assistant United States district attorney, collector or deputy 
 collector of internal revenue, or revenue agent or private citizen, 
 but no such warrant of arrest shall be issued upon the sworn com- 
 
 elaint of a private citizen unless first approved in writing by a 
 Tnited States district attorney. * * * 
 
 Under the act of May 28, 1896, the issue of a warrant upon a com- 
 plaint made by a field deputy marshal, which was approved by the dis- 
 trict attorney by telephone, even though subsequently reduced to writing, 
 is not authorized. (VI Comp. Dec, 113.) 
 
 Fees of United States marshals — illegal warrants. (IV Oomp. Dec, 
 338, 449, 672.) 
 
 Digitized by Microsoft® 
 
660 APPENDIX. 
 
 Deputy collectors swearing to complaints. (T. D. 510.) 
 Insufficiency of warrant. (United States v. Saplnkow, 90 Fed., 654.) 
 Warrant must particularly name or describe the person. (West v. 
 Cabell, 153 U. S., 85, 86.) 
 
 Serving .John Doe warrants not valid writs. (16 Comp. Dec, 891.) 
 Arrest of persons while operating illicit distillery. (See. 9, act Mar. 
 1, 1879, p. 231; IV Comp. Dec, 338.) 
 
 Arrests without warrant. (14 Int. Rev. Eec, 27; 24 Id., 349, 378; 
 Carrico v. Wilmoi-e, 51 Fed., 186. ) 
 
 A marshal has the right to arrest upon visible evidence of crime. 
 (United State.s v. Fullehart, 106 Fed., 911.) 
 
 Official misconduct of United States Commissioner ; practice of encour- 
 aging prosecutions set on foot by "professional witnesses." (In re Gil- 
 bert. United States Commissioner, 31 Fed., 277.) 
 
 A corporation can not be arrested. (John Gund Brewing Co.. v. 
 United States, 204 Fed., 20.) 
 
 [Act of August 18, 18H (28 Stat, U6) . j * * * XnA hereafter 
 no part of any money appropriated to pay any fees to the United 
 States commissioners, marshals, or clerks shall be used for any war- 
 rant issued or arrest made, or other fees in prosecutions under the 
 internal revenue laws, unless said fees have been taxed against and 
 collected from the defendant, or unless the prosecution has been 
 commenced upon a sworn complaint setting forth the facts con- 
 stituting the offense and alleging them to be within the personal 
 knowledge of the affiant, or upon a sworn complaint by a United 
 States district attorney, collector, or deputy collector of internal reve- 
 nue or revenue agent, setting forth the facts upon information and 
 belief, and approved either before or after such arrest by a circuit 
 or district judge or the attorney of the United States in the district 
 where the offense is alleged to have been committed or the indict- 
 ment is found : 
 
 Provided, That it shall be the duty of the marshal, his deputy, or 
 other officer who may arrest a person charged with any crime or 
 offense, to take the defendant before the nearest circuit court commis- 
 sioner or the nearest judicial officer having jurisdiction under exist- 
 ing laws for a hearing, commitment or taking bail for trial, and the 
 officer or magistrate issuing the warrant shall attach thereto a cer- 
 tified copy of the complaint ; and upon the arrest of the accused, the 
 return of the warrant, with a copy of tlie complaint attached, shall 
 confer jurisdiction upon such officer as fully as if the complaint had 
 originally been made before him, and no mileage shall be allowed 
 any officer violating the provisions hereof. 
 
 Construction of statute. (United States c. Puleston, 106 Fed., 294.) 
 
 Clcikg of conrts to report to Commissioner na to all moneys paid Into eonrt In Internal-reTcnne 
 
 cases, etc. 
 
 Sec. 797. [Amended hy sec. 2, act of March 1, 1879 {20 Stat., 327) .] 
 Every clerk of a circuit or district court shall, within thirty days 
 after the adjournment of each term thereof, forward to the Solicitor 
 of the Treasury a list of all judgments and decrees, to which the 
 United States are parties, which have been entered in said court, 
 resijectively, during such term, showing the amount adjudged or 
 decreed in each case, for or against the United States, and the term 
 to which execution thereon will be returnable. He shall also, at the 
 close of each quarter, or within ten days thereafter, report to the 
 Commissioner of Int^j^-^SfS^'Wfc/^ioWgP^ys paid into couit on 
 
APPENDIX. 
 
 661 
 
 account of cases arising under the internal-revenue laws, as well as 
 all monej's paid on suits on bonds of collectors of internal revenue. 
 The report shall show the name and nature of each case, the date of 
 payment into court, the amount paid on account of debt, tax, or 
 penalty, and also the amount on account of costs. If such money, or 
 iiny portion thereof, has been paid by the clerk to any internal- 
 levenue officer or other person, the report shall show to vrhom each 
 of such payments was made; and if to an internal-revenue officer, 
 it shall be accompanied by the receipt of such officer. 
 
 Section 5, act of February 22, 1875 (38 Stat., 334), provides that if any 
 clerk of any district or circuit court of tlie United States sliall willfully 
 refuse or neglect to make any report or other document required by law 
 to be by him made, or shall willfully refuse or neglect to forward any 
 such report or document to the department, officer, or person to whom 
 by law the same should be forwarded, the clerk so offending shall be 
 removed from office and shall not be eligible to any appointment as clerk 
 or deputy clerk for the period of two years next after such removal. 
 
 Section 6 of the same act also provides additional punishment, by a fine 
 not exceeding $1,000 or by imprisonment not exceeding one year, in the 
 discretion of the court. 
 
 Clerk of court failing to deposit moneys, etc. (Sec. 99 of the criminal 
 code, act March 4, 1909, 35 Stat., 1088.) 
 
 Clerks of court to keep indices of judgment records. See act August 
 1, 1888, p. 648.) 
 
 Clerks are instructed In all cases in the several courts arising under 
 the internal-revenue laws, where moneys are recovered and paid in for 
 the United States, to pay over such moneys, including costs, to the col- 
 lectors of internal revenue under the provisions of section 3216, R. S. 
 
 Collectors will furnish the clerks with receipts in duplicate on Form 
 No. 540, the original to be forwarded to the Commissioner with the clerk's 
 quarterly report (Form 158), the duplicate to be retained by the clerk. 
 
 (See circular to clerks of United States courts issued by the Attorney 
 General April 20, 1898, T. D. No. 19306, 1898; also. Instructions to at- 
 torneys, clerks, etc., by the Department of .Justice, T. D. 754; Regula- 
 tions, No. 12, rev.) 
 
 Moneys recovered on forfeited recognizances or bail bonds are not 
 classed as internal-revenue moneys and should be paid into the Treasury 
 by the clerk of court and not turned over by him to the collector of 
 internal revenue. (See Digest of Opinions of Solicitor of the Treasury, 
 1885-1903, p. 240.) 
 
 Sec. 6. [Act of May 38, 1896 {29 Stat, 178).] That, on and after 
 the first day of July, eighteen hundred and ninety-six, all fees and 
 emoluments authorized by law to be paid to United States district 
 attorneys and T^nited States marshals shall be charged as heretofore, 
 and shall be collected, as far as possible, and paid to the Clerk of the 
 court having jurisdiction, and by him covered into the Treasury of 
 the United States. 
 
 Chapter 2. 
 
 DUTIES OF OFFICERS CHARGED WITH RECEIVING OR DISBURSING 
 PUBLIC MONEYS— EMBEZZLEMENT AND OFFICIAL MISCONDUCT- 
 PROCEEDINGS AGAINST DELINQUENT OFFICERS. 
 
 Moneys to be deposited without deduc- 
 tion. 
 
 Duty of disbursing officers. 
 
 Persons having moneys of United 
 States must pay the same to Treas- 
 urer, etc. Digitized by 
 
 Accounts to be rendered. 
 
 Distinct accounts required according 
 
 to appropriation. 
 Suits to recover money from officers 
 
 regulated. 
 
662 
 
 APPENDIX. 
 
 Failure of disbursing officer to ac- 
 count; duty thereupon of Auditor 
 and Solicitor of Treasury. 
 
 Duties of officers as custodians of pub- 
 lic moneys. 
 
 Embezzlement ; penalty for requiring 
 receipt for larger sum than that 
 actually paid. 
 
 Embezzlement; penalty for disbursing 
 officer unlawfully depositing, con- 
 verting, loaning, or transferring 
 public money. 
 
 Embezzlement; penalty for custodians 
 of public money failing to safely 
 keep, etc. 
 
 Embezzlement; penalty for failure to 
 render accounts. 
 
 Embezzlement ; penalty for failure to 
 deposit as required. 
 
 Record evidence of embezzlement. 
 
 Refusal to pay any draft, etc., prima 
 facie evidence of embezzlement. 
 
 Evidence of conversion. 
 
 Unlawfully receiving public money. 
 
 Embezzlement by internal-revenue of- 
 ficers and assistants where offense 
 is not otherwise punishable. 
 
 Penalty for clerks and officers of court 
 failing to deposit moneys. 
 
 Penalty for receiving moneys belong- 
 ing to the registry of the court. 
 
 Penalty for failure to make reports. 
 
 Disbursing officer forbidden to trace 
 in public funds. 
 
 Collecting officers forbidden to trade 
 in public property. 
 
 Transcripts from books, etc., of the 
 Treasury to be evidence in suits 
 against delinquents. 
 
 Delinquents for public money ; judg- 
 ment at return term, unless, etc. 
 
 moneys to Ibe deposited without deduction. 
 
 Sec. 3617. The gross amount of all moneys received from whatever 
 source for the use of the United States, except as otherwise provided 
 in the next section, shall be paid by the officer or agent receiving the 
 same into the Treasury, at as early a day as practicable, without any 
 abatement or deduction on account of salary, fees, costs, charges, 
 expenses, or claim of any description whatever. But nothing herein 
 shall affect any provision relating to the revenues of the Post-Office 
 Department. 
 
 The next section relates to the proceeds of sales of material. Ill Comp. 
 Dec. 149. 
 
 It seems that no express authority has been given the executive depart- 
 ments to sell old or disused material and supplies. Such practice appears 
 to have grown up, however, for reasons of economy, and is apparently 
 recognized in the provisions of sections 197 and 3618 of the Revised 
 Statutes, which provide for the accounting by Government officers for 
 moneys received from the sale of old material and supplies. (28 Op. 
 Atty. Gen., 203.) 
 
 Section 3619 provides that "Every officer or agent who neglects or re- 
 fuses to comply with the provisions of section 3617 shall be subject to 
 be removed from office, and to forfeit to the United States any share or 
 part of the moneys withheld, to which he might ■ otherwise be entitled." 
 
 (15 Op. Atty. Gen., 387. 24 Int. Rev. Rec, 130; 26 Id., 230) 
 
 (See sees. 3210, 3216, R. S., pp. 129, 1.35; act of May 27, 1908 (35 Stat, 
 325) p. 130; XVI Comp. Dec, 309.) 
 
 Information relating to the accounting system of the United States 
 Treasury Department. A compendium of the principal United States 
 statutes and comptroller's decisions relating to the accounting officers 
 of the Treasury, etc., compiled by Robert S. Person, auditor for Interior 
 Department, 1905. 
 
 Collector can not deposit short to balance previous overdeposit. (T. 
 D. 2225.) 
 
 Sec. 3620. [Amended hy the act of February 27, 1877 {19 Stat., 
 2JiO).'] It shall be the duty of every disbursing officer having any 
 public money intrusted to him for disbursement, to deposit the same 
 with the Treasurer or some one of the assistant treasurers of the 
 United States, and tojiraw for the. same ^ly as it may be required 
 
APPENDIX. 663 
 
 for payments to be made by him in pursuance of law and draw for 
 the same only in favor of the persons to whom payment is made; 
 and all transfers from the Treasurer of the United States to a dis- 
 bursing officer shall be by draft or warrant on the Treasury or an 
 assistant treasurer of the United States. In places, however, where 
 there is no treasurer or assistant treasurer, the Secretary of the 
 Treasury may, when he deems it essential to the public interest, 
 specially authorize in writing the deposit of such public money in 
 any other public depository, or, in writing, authorize the same to 
 be kept in any other manner, and under such rules and regulations 
 as he may deem most safe and effectual to facilitate the payments 
 to public creditors. 
 
 See section 87 of the Criminal Code, act of March 4, 1909 (35 Stat., 
 1105), page 668, providing penalty for unlawfully depositing. 
 
 Checks of disbursing officers. (15 Op. Atty. Gen., 288.) 
 
 Depositories to be designated by Secretary, section 3211, page 130. 
 
 Principles governing the forms of expenditure, documents, and the 
 character of evidence to be prepared and kept pertaining to transactions 
 involving the expenditure of money. (Dept. Cir. No. 35, Slay 20, 1911.) 
 
 Regulation for the deposit of public moneys. (Dept. Cir. No. 105, 
 December 27, 1917.) 
 
 Public moneys and official checks of United States disbursing officers. 
 (Dept. Cir. No. 102, December 7, 1906; Dept. Cir. No. 125, August 14, 
 1897, Reg. No. 2, revised, p. 93 ; Dept Cir. No. 17, March, 19, 1908 ; 
 payment of Government warrants and checks, Dept. Cir. No. 5, April 6, 
 1916.) 
 
 Deposit of unexpended balances of annual appropriations, etc. (Dept. 
 Cir. No. 133, December 15, 1903.) 
 
 Every person liaring moneys of the United States must pay to Treasurer, etc., and take receipt. 
 
 Sec. 3621. {Amended ly sec. 5, act May 28, 1896 {29 Stat., 140).] 
 Every person who shall have moneys of the United States in his 
 hands or possession, and disbursing officers having moneys in their 
 possession not required for current expenditure, shall pay the same to 
 the Treasurer and Assistant Treasurer, or some public depositary of 
 the United States, without delay, and in all cases within thirty days 
 of their receipt. 
 
 And the Treasurer, the Assistant Treasurer, or the public de- 
 positary shall issue duplicate receipts for the moneys so paid, trans- 
 mitting forthwith the original to the Secretary of the Treasury, and 
 delivering the duplicate to the depositor. 
 
 The Secretary of the Treasury prescribed regulations as to "proper 
 disposition of certificates of deposit." (Dept. Cir. No. 12, April 17, 1913 ; 
 Dept. Cir. No. 12, January 2, 1914.) 
 
 Deposit of public moneys. (Dept. Cir. No. 47, April 5, 1905.) 
 See section 91, Criminal Code, act Marcjh 4, 1909 (35 Stat., 1105), page 
 669, providing penalty for failure to deposit as required. 
 
 Sec. 4. [Act of August 30, 1890 {26 Stat., 371).] That hereafter all 
 disbursing officers of the United States shall render their accounts 
 quarterly * * * but the Secretary of the Treasury may direct 
 any or all such accounts to be rendered more frequently when in his 
 judgment the public interest may require. 
 
 Accounts to be rendered. 
 
 Sec. 3622. [Amended ly sec. 12, act of July 31, 1894 {28 Stat., 
 209) .] Every officer or agent of the United States who receives public 
 money which he is noDis^iigifl/ij&ydMfeAn^/llKDas salary, pay, or emolu- 
 
664 APPENDIX. 
 
 nient, shall render his accounts monthly. Such accounts, with the 
 vouchers necessary to the correct and prompt settlement thereof, shall 
 be sent by mail, or otherwise, to the Bureau to which they jiertain, 
 within ten clays after the expiration of each successive month, and, 
 after examination there, shall be passed to the proper accounting 
 officer of the Treasury for settlement. Disbursing officers of the Navy 
 shall, however, render their accounts and vouchers direct to the 
 proper accounting officer of the Treasury. In case of the non-receipt 
 at the Treasury, or proper Bureau, of any accounts within a reason- 
 able and proper time thereafter, the officer whose accounts are in de- 
 fault shall be required to furnish satisfactory evidence of having 
 complied with the provisions of this section. * * * Nothing 
 herein contained shall, however, be construed to restrain the heads of 
 any of the Departments from requiring such other returns or reports 
 from the officer or agent, subject to the control of such heads of 
 Departments, as the public interest may require. 
 
 Collectors of internal revenue shall render their revenue aormmts quar- 
 terly. (Act May 27, 1908, 35 Stat., 325, p. 130. ) 
 
 Collectors, acting as disbursing agents, report transactions of funds ad- 
 vanced to them from the several appropriations on Form 44. This report 
 is rendered monthly, and under section 12 of the act of .Tuly 31, 1894, 
 amended, should be mailed or otherwise sent to the Commissioner of 
 Internal Revenue vi^ithin ten days after the end of the month to which it 
 relates. (Reg. No. 2, revised, p. 106.) 
 
 See section 90, Criminal Code, act Jlareh 4, 1909 (35 Stat.. 1105), page 
 669, providing penalty for failure to render accounts. 
 
 The provision giving the Secretary of the Treasury power in particular 
 cases to extend the time prescribed for the rendition of accounts does not 
 authorize him to institute a new system of rendering accounts. (16 Op. 
 Atty..Gen., 222.) 
 
 Rendition of accounts. (19 Op. Atty. Gen., 557 ; 36 Int. Rev. Rec, 173.) 
 
 The Dockery commission was organized by the act of March 3, 1893. 
 
 The " Dockery bill " was included in the legislative, executive, and 
 judicial appropriation act for the fiscal year 1895. (Act of .July 31, 1894, 
 28 Stat., 162.) The act went into effect October 1, 1894, and provided 
 that hereafter the First Comptroller shall be known as the Comptroller 
 of the Treasury. 
 
 It abolished the office of Commissioner of Customs, Second Comptroller, 
 and other offices, and modified the method of settlement of accounts. 
 
 The act prescribes the powers and duties of the accounting officers of 
 the Treasury Department (28 Stat., 205-211). (See Digest of the Deci- 
 sions of the Comptroller of the Treasury, 1902.) 
 
 Section 22 contains the following paragraph : 
 
 "It shall also be the duty of the heads of the several Execiitive De- 
 partments and of the proper officers of other Government establishments, 
 not within the jurisdiction of any Executive Department, to make ap- 
 propriate rules and regulations to secure a proper administrative exami- 
 nation of all accounts sent to them, as required by section 12 of this act, 
 before their transmission to the auditors, and for tlie execution of other 
 requirements of this act in so far as the same relate to the several depart- 
 ments or establishments." 
 
 Regulations governing the revision by Comptroller of the Treasury of 
 accounts settled by the auditors. (Dept. Cir. 87, April 25, 1895; 
 Treasurv Bookkeeping, Dept. Cir. 38, .Tune 17, 1907; Dept. Cir. .-)6, .Tuly 
 14, 1908.) 
 
 Secretary can not legally by departmental order change a practice or 
 course of office prescribed by statute for settlement of accounts. (9 Op. 
 Attv. Gen., 177.) 
 
 Power of auditor and comptroller .stated. (Waters i: United States, 
 21 Ct. Clms., 37, 38.) 
 
 Reopening accounts. (4 Comp. Dec, 303, December 9, 1897.) 
 
 Digitized by Microsoft® 
 
APPENDIX. 665 
 
 Transmittal of accounta. 
 
 Sec. 12. [Act of July 31, 1894 {28 Stat., 162) , as amended by sec. 4, 
 act of May 28, 1896 {29 Stat., HO).] All monthly accounts shall be 
 mailed or otherwise sent to the proper officer at Washington within 
 ten days after the end of the month to which they relate, and quar- 
 terly and other accounts within twenty days after the period to 
 which they relate, and shall be transmitted to and received by the 
 Auditors within twenty days of their actual receipt at the proper 
 office in Washington in the case of monthly, and sixty days in the 
 case of quarterly and other accounts. Should there be any delin- 
 quency in this regard at the time of the receipt by the Auditor of a 
 requisition for an advance of money, he shall disapprove the requisi- 
 tion, which he may also do for other reasons arising out of the condi- 
 tion of the officer's accounts for whom the advance is requested; but 
 the Secretary of the Treasury may overrule the Auditor's decision as 
 to the sufficiency of these latter reasons : 
 
 Provided, That the Secretary of the Treasury shall prescribe suit- 
 able rules and regulations, and may make orders in particular cases, 
 relaxing the requirements of mailing or otherwise sending accounts, 
 as aforesaid, within ten or twenty days, or waiving delinquency, in 
 such cases only in which there is, or is likely to be, a manifest physical 
 difficulty in complying with the same, it being the purpose of this 
 provision to require the prompt rendition of accounts without regard 
 to the mere convenience of the officers, and to forbid the advance of 
 money to those delinquent in rendering them : 
 
 Provided further. That should there be a delay by the administra- 
 tive Departments beyond the aforesaid twenty or sixty days in trans- 
 mitting accounts, an order of the President, or in the event of the 
 absence from the seat of Government, or sickness of the President, 
 an order of the Secretary of the Treasury, in the particular case shall 
 be necessary to authorize the advance of money requested : 
 
 And provided further, That this section shall not apply to accounts 
 of the postal revenue and expenditures therefrom, which shall be 
 rendered as now required by law. 
 
 The Secretary of the Treasury shall, on the first Monday of Janu- 
 ary in each year, make report to Congress of such officers and admin- 
 istrative departments and offices of the Government as were, respec- 
 tively, at any time during the last preceding fiscal year delinquent in 
 rendering or transmitting accounts to the proper offices in Washing- 
 ton and the cause therefor, and in each case indicating whether the 
 delinquency was waived, together with such officers, including post- 
 masters and officers of the Post-Office Department, as were found 
 upon final settlement of their accounts to have been indebted to the 
 Government, with the amount of such indebtedness in each case, and 
 who, at the date of making report, had failed to pay the same into 
 the Treasury of the United States. * * * 
 
 Instructions to carry into effect the recoranaendations of the Committee 
 on Department Methods. (Dept. Cir. 52, July 29, 1907.) 
 
 Circular relative to transmittal of accounts, Department No. 114, Au- 
 gust 16, 1894. 
 
 Transmittal of accounts and advances of funds. (Dept. Cir. 25, T. D. 
 18925, 1898.) 
 
 Instructions relative to preparation of report on Form 51 B. (T. D. 
 
 ^^^^^ ■ Digitized by Microsoft® 
 
666 APPENDIX. 
 
 Distinct acconnts required according to appropriation. 
 
 Sec. 3623. All officers, agents, or other persons, receiving public 
 moneys, shall render distinct accounts of the application thereof, 
 according to the appropriation under which the same may- have been 
 advanced to them. 
 
 Sniti to recover money from officers regulated. 
 
 Sec. 3624. Whenever any person accountable for public money, 
 neglects or refuses to pay into the Treasury the sum or balance 
 reported to be due to the United States, upon the adjustment of his 
 account, the (First) Comptroller of the Treasury shall institute suit 
 for the recovery of the same, adding to the sum stated to be due on 
 such account, the commissions of the delinquent, which shall be for- 
 feited in every instance where suit is commenced and judgment 
 obtained thereon, and an interest of six per centum per annum, from 
 the time of receiving the money until it shall be repaid into the 
 Treasury. 
 
 Duties of First Comptroller conferred on Comptroller of Treasury 
 (Dockery Act), act of July 31, 1894 (28 Stat., 162). 
 
 Distress warrant. 
 
 Sec. 3625. [Amended hy sec. 4, act July SI, 189i {28 Stat., 16^).] 
 Whenever any collector of the revenue, receiver of public money, or 
 other officer who has received the public money before it is paid into 
 the Treasury of the United States, fails to render his account, or pay 
 over the same in the manner or within the time required by law, it 
 shall be the duty of the proper Auditor to cause to be stated the 
 account of such officer, exhibiting truly the amount due to the United 
 States, and to certify the same to the Solicitor of the Treasury, who 
 shall issue a warrant of distress against the delinquent officer and his 
 sureties, directed to the marshal of the district in which such officer 
 and his sureties reside. Where the officer and his sureties reside in 
 different districts, or where they, or either of them, reside in a district 
 other than that in which the estate of either may be, which it is 
 intended to take and sell, then such warrant shall be directed to the 
 marshals of such districts, respectively. 
 
 Section 3217, page 135. 
 
 Proceedings by distress warrant have not been resorted to for many 
 years. The remedy by suit on bond is deemed preferable. 
 
 Failure of disbursing officer to account — Duty tlierenpon of Auditor and Solicitor of Treasury. 
 
 Sec. 3633. [Amended hy sec. ^ act July 31, 18H {28 Stat., 162).] 
 Whenever any officer employed in the civil, military, or naval service 
 of the Government, to disburse the public money appropriated for 
 those branches of the public service, respectively, fails to render his 
 accounts, or to pay over, in the manner and in the time required by 
 law, or by the regulations of the Department to which he is account- 
 able, any sum of money remaining in his hands, it shall be the duty of 
 the proper Auditor, as the case may be, who shall be charged with the 
 revision of the accounts of such officer, to cause to be stated and 
 certified the account of such delinquent officer to the Solicitor of the 
 Digitized by Microsoft® 
 
APPENDIX. 667 
 
 Treasury, who is herebj' authorized and required immediate]}- to 
 proceed against such delinquent officer, in the manner directed in the 
 six preceding sections. 
 
 The six preceding sections referred to, viz, sections 3627, 3628, 3629, 
 3630, 3631, 3632, relate to proceedings by warrant of distress, not visually 
 resorted to. See section 90, act of March 4, 1909 (35 Stat., 1105), 
 page 669. 
 
 Bights of United States reserred. 
 
 Sec. 3638. Nothing contained in the provisions of this Title I'elat- 
 ing to distress- warrants shall be construed to take away or impair any 
 right or remedy which the United States might have, by law, for the 
 recovery of taxes, debts, or demands. 
 
 Duties of ofllcers as custodians of public moneys to safely keep, etc. 
 
 Sec. 3639. The Treasurer of the United States, all assistant treas- 
 urers, and those performing the duties of assistant treasurer, all col- 
 lectors of the customs, all surveyors of the customs, acting also as 
 collectors, all receivers of public moneys at the several land-offices, all 
 postmasters, and all public officers of whatsoever character, are 
 required to keep safely, without loaning, using, depositing in banks, 
 or exchanging for other funds than as specially allowed by law, all 
 the public money collected by them, or otherwise at any time placed 
 in their possession and custody, till the same is ordered, by the proper 
 Department or officer of the Government, to be transferred or paid 
 out; and when such orders for transfer or payment are received, 
 faithfully and promptly to make the same as directed, and to do and 
 perform all other duties as fiscal agents of the Government which 
 may be imposed by any law, or by any regulation of the Treasury 
 Department made in conformity to law. 
 
 The President is authorized, if in his opinion the interest of the 
 United States requires the same, to regulate and increase the sum for 
 which bonds are,. or may be, required by law, of all district attorneys, 
 collectors of customs, naval officers, and surveyors of customs, navy 
 agents, receivers and registers of public lands, paymasters in the 
 Army, commissary-general, and by all other officers employed in the 
 disbursement of the public moneys, under the direction of tlie War or 
 Navy Departments. 
 
 See sections 86, 87, 88, 89, 90, 91, and 92 of the Criminal Code, act; 
 March 4, 1909 (35 Stat., 1105), pp. 667-669. 
 
 Entry to be kept of sums received and of transfer and payment. 
 
 Sec. 3643. All persons charged by. law with the safe-keeping, trans- 
 fer, and disbursement of the public moneys, other than those con- 
 nected with the Post-Office Department, are required to keep an 
 accurate entry of each sum received and of each payment or transfer. 
 
 Embezzlement: Penalty for redniring receipt for larger sum than tiiat actaally paid. 
 
 [§5483.] Sec. 86. [Act of March ^, 1909, CrimiThoZ Code {36 Stat., 
 1105).'] Whoever, being an officer, clerk, agent, employee, or other 
 person charged with the payment of any appropriation made by 
 Congress, shall pay to any clerk or other employee of the United 
 States a sum less tha^y^^ggrm'^^^y^w, and require such em- 
 
668 APPENDIX. 
 
 ploj'ee to receipt or give a voucher for an amount greater than that 
 actually paid to and received by him, is guilty of embezzlement, and 
 shall be fined in double the amount so withheld from any employee of 
 the Government and imprisoned not more than two years. 
 
 Euibozzlcmcnt : Penalty for disbursing oillccr niilawfiilly depositing, converting, loaning, or 
 transferring public money. 
 
 [§5488.1 Sec. 87. [Act of March 4, 1909, Criminal Code {35 Stat., 
 J 105).] Whoever, being a disbursing officer of the United States, 
 or a person acting as such, shall in any manner convert to his own 
 use, or loan with or without interest, or deposit in any place or in 
 any manner, except as authorized by law, any public money intrusted 
 to him ; or shall, for any purpose not prescribed by law, Avithdraw 
 from the Treasurer or any assistant treasurer, or any authorized 
 depositary, or transfer, or apply, any portion of the public money 
 intrusted to him, shall be deemed guilty of an embezzlement of the 
 money so converted, loaned, deposited, withdrawn, transferred, or 
 ai^plied, and shall be fined not more than the amount embezzled, or 
 imprisoned not more than ten years, or both. 
 
 See section 3620, page 662, and section 96 of the Criminal Code, act of 
 Jlarcli 4, 1909 (35 Stat., 1106), page 670. 
 
 Failure of depositaries to safely keep public deposits. 
 
 [§5489.J Sec. 88. [Act of March i, 1909, Criminal Code {36 
 Stat., 1105).'] If the Treasurer of the United States or any assist- 
 ant treasurer, or any public depositary, fails safely to keep all 
 moneys deposited by any disbursing officer or disbursing agent, 
 as well as all moneys deposited by any receiver, collector, or other 
 person having money of the United States, he shall be deemed 
 guilty of embezzlement of the moneys not so safely kept, and shall 
 be fined in a sum equal to the amount of money so embezzled and 
 imprisoned not more than ten years. 
 
 Embezzlement: Penalty for custodians of public money falling to safely keep, etc. 
 
 [§5490.] Sec. 89. [Act of March 4, 1909, Criminal Code {35 
 Stat., 1105).] Every officer or other person charged by any Act of 
 Congress with the safe-keeping of the public moneys, who shall loan, 
 use, or convert to his own use, or shall deposit in any bank or exchange 
 for other funds, except as specially allowed by law, any portion of 
 the public moneys intrusted to him for safe-keeping, shall be guilty 
 of embezzlement of the money so loaned, used, converted, deposited, 
 or exchanged, and shall be fined in a sum equal to the amount of 
 money so embezzled and imprisoned not more than ten years. 
 
 Collector or receiver of public money excused from paying if pre- 
 vented by act of God or the public enemy. (United States v. Thomas, 
 15 Wall., 837.) 
 
 Felonious taking or carrying away of public moneys in the custody of 
 a receiver without fault or negligence on his part, not any defense on 
 Hie bond. (United States v. Prescott, 3 How., 578; also United States v. 
 Dashiell, 4 Wall., 182; Boyden v. United States, 13 Wall., 17.) 
 
 Fraudulent intent not a necessary ingredient. (29 Op. Atty. Gen., 563.) 
 
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APPENDIX. 669 
 
 Embczzlcmpnt : Penalty for failure of officer or agent to render accounts, etc. 
 
 [§5491.] Sec. 90. [Act of March If, 1909, Criminal Code (35 
 Stat., 1105) .] Every officer or agent of the United States who, having 
 received public money which he is not authorized to retain as salary, 
 pay, or emolument, fails to render his accounts for the same as pro- 
 vided by law shall be deemed guilty of embezzlement, and shall be 
 fined in a sum equal to the amount of the money embezzled and 
 imprisoned not more than ten years. 
 
 Failure to make reports. — See section 101 of the Criminiil Code, act of 
 March 4, 1909 (.35 Stut., 1107) , page 671. 
 
 Penalty for falsification of accounts and making false reports, by per- 
 sons in the employ of the United States. Fine of not more than $.5,000, 
 or imprisonment not more than ten vears, or both. Act of March 4, 
 1911 (36 Stat., 1355). 
 
 Emhozzlemont : Penalty for failure to deposit as required. 
 
 [§5492.] Rec. 91. [AH of March h, 1909, CnminaJ, Code {35 
 Stat., 1105).] Whoever, having money of the United States in his 
 possession or under his control, shall fail to deposit it with the Treas- 
 urer, or some assistant treasurer, or some piiblic depositary of the 
 United States, when required so to do by the Secretary of the Treas- 
 urj', or the head of any other proper department, or by the account- 
 ing officers of the Treasury, shall be deemed guilty of embezzlement 
 thereof, and shall be fined in a sum equal to the amount of money 
 embezzled and imprisoned not more than ten years. 
 
 Dimmick V. United States (121 Fed., 638, affirming 112 Fed., 362.) 
 
 Record OTldence of cmbezzlcmeiit. 
 
 [§5494.] Sec. 93. [Act of March 4, 1909, Criminal Code {35 
 Stat., 1105) . j Upon the trial of any indictment against any person for 
 embezzling public money under any provision of the six preceding 
 sections, it shall be sufficient evidence, prima facie, for the purpose 
 of showing a balance against such person, to produce a transcript from 
 the books and proceedings of the Treasury, as required in civil cases, 
 under the provisions for the settlement of accounts between the 
 United States and receivers of public money. 
 
 Befnsal to pay any draft, etc., prima facie eyidcnce of embezzlement. 
 
 [§5495.] Sec. 94. [Act of March 4, 1909, Criminal Code {35 
 Stat., 1106).] The refusal of any person, whether in or out of office, 
 charged with the safe-keeping, transfer, or disbursement of the pub- 
 lic money to pay any draft, order, or wai-rant, drawn upon him by 
 the proper accounting officer of the Treasury, for any public money 
 in his hands belonging to the United States, no matter in what 
 capacity the same may have been received, or may be held, or to 
 transfer or disburse any such money, promptly, upon the legal re- 
 quirement of any authorized officer, shall be deemed, upon the trial 
 of any indictment against such person for embezzlement, prima facie 
 evidence of such embezzlement. 
 
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670 
 
 APPENDIX, 
 
 Evidence of conTerglon. 
 
 [§5496.] Sec. 95. [Act of March 4, 1909, Onminal Code {S5 
 Stat, 1106).] If any officer charged with the disbursement of the 
 public moneys accepts, receives, or transmits to the Treasury Depart- 
 ment to be allowed in his favor any receipt or voucher from a creditor 
 of the United States without having paid to such creditor in such 
 funds as the officer received for disbursement, or in such funds as 
 he may be authorized by law to take in exchange, the full amount 
 specified in such receipt or voucher, every such act is an act of con- 
 version by such officer to his own use of the amount specified in 
 such receipt or voucher. 
 
 ITnla'wfnlly receiving, eto.» to be embezzlement — ^Embezzlement by internal-reTenne officer or 
 
 employee and others. 
 
 [§5497.] Sec. 96. \Act of Maa-ch 4, 1909, Gnminal Code {35 
 Stat., 1106).] Every banker, broker, or other person not an author- 
 ized depositary of public moneys, who shall knowingly receive from 
 any disbursing officer, or collector of internal revenue, or other 
 agent of the United States, any public money on deposit, or by way 
 of loan or accommodation, with or without interest, or otherwise 
 than in payment of a debt against the United States, or shall use, 
 transfer, convert, appropriate, or apply any portion of the public 
 money for any purpose not prescribed by law ; and every president, 
 cashier, teller, director, or other officer of any bank or banking asso- 
 ciation who shall violate any provision of this section is guilty of 
 embezzlement of the public money so deposited, loaned, transferred, 
 used, converted, appropriated, or applied, and shall be fined not 
 more than the amount embezzled, or imprisoned not more than ten 
 years, or both. 
 
 United States v. Green (146 Fed., 778; 154 Fed., 402.) 
 
 Embezzlement by Internal-reTenne officer. 
 
 [Act February 3, 1879, § 5497.] Sec. 97. [Act of March k., 1909, 
 Cnminal Code {35 Stat., 1106).] Any officer connected with, or 
 employed in, the Internal-Revenue Service of the United States, and 
 any assistant of such officer, who shall embezzle or wrongfully con- 
 vert to his own use any money or other property of the United States, 
 and any officer of the United States, or any assistant of such officer, 
 who shall embezzle or wrongfully convert to his own use any money 
 or property which may have come into his possession or under his 
 control in the execution of such office or employment, or under color 
 or claim of authority as such officer or assistant, whether the same 
 shall be the money or property of the United States or of some other 
 person or party, shall, where the offense is not otherwise punishable 
 by some statute of the United States, be fined not more than the 
 value of the money and property thus embezzled or converted, or 
 imprisoned not more than ten years, or both. 
 
 See section 3639, page 667. 
 
 Application of laws imposing punishment on internal-revenue officers to 
 certain other classes of persons. (Sec. 23, act of Feb. 8, 1875, 18 Stat., 
 307; p. 101. 
 
 Embezzlement is lie .fraudulertt appropnation of property by a person 
 to whom it has h&ISmm.mb.mM'Wm'miosQ hands it has lawfully 
 
APPENDIX. 671 
 
 come; and it differs from larceny in tlie fact that the original taking 
 of the property was lawful, or with the consent of the owner, while In 
 larceny the felonious intent must have existed at the time of the 
 tailing. (Moore v. United States, 160 U. S., 268.) 
 
 Penalty (or clerks and otber offlcers of United States court (ailing to deposit moneys. 
 
 [§ 5504.] Sec. 99. [Act of March 4., 1.909, Criminal Code {35 
 Stat., 1106).] Whoever, being a clerk or other officer of a court of 
 the United States, shall fail forthwith to deposit any money belong- 
 ing in the registry of the court, or hereafter paid into court or re- 
 ceived by the officers thereof, with the Treasurer, assistant treasurer, 
 or a designated depositary of the United States, in the name and to 
 the credit of such court, or shall retain or convert to his own use or 
 to the use of another any such money, is guilty of embezzlement, and 
 shall be fined not more than the amount embezzled, or imprisoned 
 not more than ten years, or both ; but nothing herein shall be held to 
 prevent the delivery of any such money upon security, according to 
 agreement of parties, under the direction of the court. 
 
 Section 3617, page 662. 
 
 Howard v. United States. (184 U. S., 676.) 
 
 Penalty tor recelTlng money belonging In the registry of the conrt. 
 
 ^ [§5505.] Sec. 100. [Act of March 4, 1909, Cnndnal Code {35 
 Stat., 1107) .] Whoever shall knowingly receive, from a clerk or other 
 officer of a court of the United States, as a deposit, loan, or otherwise, 
 any money belonging in the registry of such court, is guilty of embez- 
 zlement, and shall be punished as prescribed in the preceding section. 
 
 Penalty (or (allure to make reports. 
 
 [§1780.] Sec. 101. [Act of Mwrch i, 1909, Criminal Code {35 
 Stat., 1107) .] Every officer who neglects or refuses to make any re- 
 turn or report which he is required to make at stated times by any 
 Act of Congress or regulation of the Department of the Treasury, 
 other than his accounts, within the time prescribed by such Act or 
 regulation, shall be fined not more than one thousand dollars. 
 
 Penalty for making false reports. Act of March 4, 1911. (36 Stat., 
 1355.) 
 
 Disbursing and collecting offlcers (orhldden to trade in public funds or property. 
 
 [§§1788, 1789.] Sec. 103. [Act of March 4, 1909, Cnminal Code 
 [35 Stat., 1107).] Whoever, being an officer of the United States 
 concerned in the collection or the disbursement of the revenues there- 
 of, shall carry on any trade or business in the funds or debts of the 
 United States, or of any State, or in any public property of either, 
 shall be fined not more than three thousand dollars or imprisoned 
 not more than one year, or both, and be removed irom office, and 
 thereafter be incapable of holding any office under the United States. 
 
 Certain business forbidden to clerks in Treasury Department. (Sec. 
 244, p. 702.) 
 
 Transcripts from books, etc., of the Treasniy, to be evidence In snits against delinquents. 
 
 Sec. 886. When suit is brought in any case of delinquency of a 
 revenue officer, or other person accountable for public money, a 
 transcript from the books, and j)rDceedines of the Treasury Depart- 
 
672 APPENDIX. 
 
 ment, certified by the Register and authenticated under the seal of 
 the Department, or, when the suit involves the accounts of the War 
 or Navy Departments, certified by the auditors respectively charged 
 with the examination of those accounts, and authenticated under the 
 seal of the Treasury Department, shall be admitted as evidence, and 
 the court trying the cause shall be authorized to grant judgment and 
 award execution accordingly. And all copies of bonds, contracts, or 
 other papers relating to, or connected with, the settlement of any 
 account between the United States and an individual, when certified 
 by the Eegister, or by such Auditor, as the case may be, to be true 
 copies of the originals on file, and authenticated under the seal of the 
 Department, may be annexed to such transcripts, and shall have 
 equal validity, and be entitled to the same degree of credit which 
 would be due to the original papers if produced and authenticated in 
 court: Provided, That where suit is brought upon a bond or other 
 sealed instrument, and the defendant pleads " non est factum," or 
 makes his motion to the court, verifying such plea or motion by his 
 oath, the court may take the same into consideration, and, if it 
 appears to be necessary for the attainment of justice, may require the 
 production of the original bond, contract, or other paper specified in 
 such affidavit. 
 
 Soule V. United States (100 U. S. (10 Otto), 8; 26 Int. Rev. Rec, 4) ; 
 United States v. Hunt (105 U. S. (15 Otto), 183; 28 Int. Rev. Rec, 134). 
 
 The form of certificate proper to be used under section 886 is discussed 
 bv Mr. Justice Harlan in United States v. Pinson (102 U. S., 548; 27 
 Int. Rev. Rec, 62). 
 
 The transcripts from the books and proceedings of the Department of 
 the Treasury and the copies of bonds, contracts, and other papers pro- 
 vided for in section 886 of the Revised Statutes shall hereafter be certi- 
 fied by the Secretary or an Assistant Secretary of the Treasury under the 
 seal of the department (sec. 10, act of March 2, 1895; 28 Stat., 809). 
 
 Section 886 applies only to certifying transcripts from the books and 
 proceedings of the Treasury Department and copies of bonds, contracts, 
 or other papers relating to or connected with the settlement of an account 
 when suit is brought in any case of delinquency of a revenue officer or 
 other person accountable for public money. 
 
 Transcripts and copies. How furnished. (Department Circular No. 56, 
 June 27, 1906; LafCan v. United States, 122 Fed., 833; T. D. 653.) 
 
 See section 882, R. S., p. 644. 
 
 Effects of certified transcripts from the books of the Treasury Depart- 
 ment as evidence in actions against officers accountable for public 
 moneys. (United States v. Pierson, 145 Fed., 814.) 
 
 Transcripts from books, etc., of the Treasury In Indictments for embezzlement ol public moneys. 
 
 Sec. 887. Upon the trial of any indictment against any person for 
 embezzling public moneys, it shall be sufficient evidence, for the 
 purpose of showing a balance against such person, to produce a 
 transcript from the books and proceedings of the Treasury Depart- 
 ment, as provided by the preceding section. 
 
 Extracts may be given in evidence. (United States t-. Gaussen, 19 
 Wall., 198.) 
 
 It is the seal which authenticates the transcript, and not the signature 
 of the Secretary. (Smith v. United States, 5 Pet., 292.) 
 
 Delinquents for public money; judgment at return term unless, etc.; credits. 
 
 Sec. 957. When suit is brought by the United States against any 
 revenue officer or other person accountable for public money, who 
 neglects or refuses t©;^'fliyedlM*5> /lll^oT«)?©ury the sum or balance 
 
APPENDIX. 
 
 678 
 
 reported to be due to the United States, upon the adjustment of his 
 account it shall be the duty of the court to grant judgment at the 
 return term, upon motion, unless the defendant, in open court, (the 
 United States attorney being present,) makes and subscribes an oath 
 that he is equitably entitled to credits which had been, previous to the 
 commencement of the suit, submitted to the accounting officers of the 
 Treasury, and rejected; specifying in the affidavit each particular 
 claim so rejected, and that he cannot then safely come to trial. If the 
 court, when such oath is made, subscribed, and filed, is thereupon 
 satisfied, a continuance until the next succeeding term may be granted. 
 Such continuance may also be granted when the suit is brought upon 
 a bond or other sealed instrument, and the defendant pleads non est 
 factum, or makes a motion to the court, verifying such plea or motion 
 by his oath, and the court thereupon requires the production of the 
 original bond, contract, or other paper certified in the affidavit. And 
 no continuance shall be granted except as herein provided. 
 
 Credits, f United States v. Flanders, 112 U. S., 88; 30 Int. Rev. Rec, 
 397.) 
 
 .Judgment against a defaulting collector. (United States i\ Ingate 
 (1891), 48 Fed., 251). 
 
 See section 951, page 685, as to claims for credit in suits of United 
 States against individuals. 
 
 Notlc« of deflclency in accounts of principals to Tue ^Tcn to snrctles upon bonds of United States 
 ofdclals, and fixing a limitation of time ^rltliln -wliich suits shall be bronght against said 
 sureties upon said bonds. 
 
 Act o£ August 8, 1888 (25 Stat., 387). See page 618. 
 
 Chapter 3. 
 
 PROVISIONS OF THE CRIMINAL CODE, ACT OF MARCH 4, 1909 (35 
 
 STAT., 1088). 
 
 [Repealed sections of tlie Revised Statutes are noted in brackets.] 
 
 PENALTIES FOR PERJURY— OBSTRUCTIN(5 PROCESS— RESISTING OF- 
 FICERS—RESCUING PRISONERS OR PROPERTY— FALSELY ASSUM- 
 ING TO BE OFFICER, ETC. 
 
 Penalty for perjury. 
 
 Penalty for resisting officer in serving 
 process. 
 
 Penalty for rescuing prisoners. 
 
 Penalty for rescuing or attempting to 
 rescue property taken or detained 
 by revenue officer. 
 
 Penalty for extortion by internal- 
 revenue informers. 
 
 Penalty for conspiracy to prevent per- 
 sons from accepting office. 
 
 Penalty for f.ilsely assuming to be a 
 Government officer. 
 
 Penalty for bribery. 
 
 Penalty for conspiracy. 
 
 Penalty for destroying or carrying 
 away without authority pubic rec- 
 ords, papers, etc. 
 
 Penalty for larceny or robbery of per- 
 sonal property of the United States. 
 
 Penalty for embezzling or stealing 
 public property or receiving and re- 
 taining in possession stolen prop- 
 erty. 
 
 Penalty for forging, altering, coun- 
 terfeiting, etc., bid, bond, public rec- 
 ord, etc. 
 
 Penalty for counterfeiting obligations 
 and other securities of the United 
 States, including stamps. 
 
 Penalty for making false or fraudulent 
 claims. 
 
 Provisions of the criminal code rela- 
 tive to distilled spirits. 
 
 140184° 
 
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674 APPENDIX. 
 
 Perjury; penalty for. 
 
 Sec. 125. [§5392, E. S.] Whoever, having taken an oath before a 
 competent tribunal, officer, or person, in any case in which a law of 
 the United States authorizes an oath to be administered, that he will 
 testify, declare, depose, or certify truly, or that any written testimony, 
 declaration, deposition, or certificate by him subscribed, is true, shall 
 willfully and contrary to such oath state or subscribe any material 
 matter which he does not believe to be true, is guilty of perjury, and 
 shall be fined not more than two thousand dollars and imprisoned not 
 more than five years. 
 
 Indictment for perjury. (United States v. William K. Smith, 12 Int. 
 Rev. Rec, 135; United States v. McConaughy, 34 Int. Rev. Rec., 80; 
 United States v. Edwards, 43 Fed., 67.) 
 
 Powers of notaries public to administer oaths. (United States v. Hall, 
 131 U. S., 50.) See section 1778. 
 
 The oath must be administered in a proceeding that is valid and 
 regular. It must be authorized by law. The false testimony must be 
 material, and the oath must be administered by one having legal au- 
 thority to administer it. (See cases cited in United States v. Bedgood, 
 49 Fed., 54.) 
 
 United States v. Lamson (165 Fed., 80.) 
 
 The oath may be administered by a deputy collector. (United States v. 
 Hardison, 135 Fed., 419. ) 
 
 One falsely swearing to an income-tax return before a commissioner 
 of deeds of the City of New York may he indicted under this section. 
 (United States v. Benowitz, T. D. 2952.) 
 
 > 
 
 Obstrncting or resisting officer in serving vrrlt; penalty. 
 
 Sec. 140. [§5398, E. S.] Whoever shall knowingly and willfully 
 obstruct, resist, or oppose any officer of the United States, or other 
 person duly authorized, in serving, or attempting to serve or execute, 
 any mesne process or warrant, or any rule or order, or any other legal 
 or judicial writ or process of any court of the United States, or United 
 States commissioner, or shall assault, beat, or wound any officer or 
 other person duly authorized, knowing him to be such officer, or other 
 person so duly authorized, in serving or executing any such writ, rule, 
 order, process, warrant, or other legal or judicial writ or process, shall 
 be fined not more than three hundred dollars and imprisoned not 
 more than one year. 
 
 United States v. Terry (41 Fed., 771.) 
 Obstructing internal-revenue officer. (3177, p. 110.) 
 Distiller obstructing officer. ( Sec. 3276, p. 225. ) 
 
 Deputy marshal an officer under this section. (United States i;. Martin, 
 17 Fed., 150.) 
 
 Bescne of prisoners; penalty. 
 
 Sec. 143. [§5401, E. S.] Whoever, by force, shall setat liberty or 
 rescue any person who, before conviction, stands committed for any 
 capital crime ; or whoever, by force, shall set at liberty or rescue any 
 person committed for or convicted of any offense other than capital, 
 shall be fined not more than five hundred dollars and imprisoned not 
 more than one year. 
 
 TaklDg seized property from custody of reTenne officer, etc.; penalty. 
 
 Sec. 65. [§5447, E. S.J Whoever shall forcibly assault, resist, op- 
 pose, prevent, impede, or interfere with any officer of the customs or 
 
 of the internal revenue, or his deputy, or any person assisting him in 
 digitized by Mibhsoft<S ^ ^ 
 
APPENDIX. 675 
 
 the execution of his duties, or any person, authorized to make 
 searches and seizures, in the execution or his duty, or shall rescue, at- 
 tempt to rescue, or cause to be rescued, any property which has been 
 seized by any person so authorized; or whoever before, at, or after 
 such seizure, in order to prevent the seizure or securing of any goods, 
 wares, or merchandise by any person so authorized, shall stave, break, 
 throw overboard, destroy, or remove the same, shall be fined not more 
 than two thousand, dollars, or imprisoned not more than one year, or 
 both; and whoever shall use any deadly or dangerous weapon in re- 
 sisting any person authorized to make searches or seizure, in the exe- 
 cution of his duty, with intent to commit a bodily injury upon him or 
 to deter or prevent him from discharging his duty, shall be impris- 
 oned not more than ten years. 
 
 Sec. 71. [§5446, E. S.] Whoever shall dispossess or rescue, or at- 
 tempt to dispossess or rescue, any property taken or detained by any 
 officer or other person under the authority of any revenue law of the 
 United States, or shall aid or assist therein, shall be fined not more 
 than three hundred dollars and imprisoned not more than one year. 
 
 Rescuing property seized by collector. ( See. 3177, p. 110 ; sees. 65 and 
 71 of the Criminal Code, act of March 4, 1909 ; 3.5 Stat., 1100, 1101. ) 
 
 Seized property irrepleviable. (Sec. 934, p. 656.) 
 
 Discharging deadly weapon at person authorized to make searches or 
 seizures. (Sec. 65 of the Criminal Code, act of March 4, 1909; 35 Stat., 
 1100.) 
 
 "Any officer." (United States v. Balrd, 48 Fed., .'■>54. ) 
 
 Falsely assuming to bo h Government officer; penalty. 
 
 Sec. 66. [§5448, E.. S.J Whoever shall falsely represent himself to 
 be a revenue officer, and, in such assumed character, demand or 
 receive any money or other article of value from any person for any 
 duty or tax due to the United States, or for any violation or pre- 
 tended violation of any revenue law of the United States, shall be 
 fined not more than five hundred dollars and imprisoned not more 
 than two years. 
 
 Sec. 32. [Act of April 18, 1884.] Whoever, with intent to defraud 
 either the United States or any person, shall falsely assume or pre- 
 tend to be an officer or employee acting under the authority of the 
 United States, or any Department, or any officer of the Government 
 thereof, and shall take upon himself to act as such, or shall in such 
 pretended character demand or obtain from any person or from the 
 United States, or any Department, or any officer of the Government 
 thereof, any money, paper, document, or other valuable thing, shall 
 be fined not more than one thousand dollars, or imprisoned not more 
 than three years, or both. 
 
 Indictment under section 5448. (United States v. Brown, 119 Fed., 482 ; 
 United States v. Farnham, 127 Fed., 478; Littell v. United States, 169 
 Fed., 620.) 
 
 Indictment under section 32, Criminal Code. (United States v. Rush, 
 196 Fed., 579.) 
 
 Bribery; penalty. 
 
 Sec. 39. [§5451, E. S.] Whoever shall promise, offer, or give, or 
 cause or procure to be promised, offered, or given, any money or 
 other thing of value, or shall make or tender any contract, under- 
 
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676 
 
 APPENDIX. 
 
 taking, obligation, gratuity, or security for the payment of money,' 
 or for the delivery or conveyance of anything of value, to any officer 
 of the United States, or to any person acting for or on behalf of 
 the United States in any official function, under or by authority of 
 any department or office of the Government thereof, or to any officer 
 or person acting for or on behalf of either House of Congress, or of 
 any committee of either House, or both Houses thereof, with intent 
 to influence his decision or action on any question, matter, cause, or 
 proceeding which may at any time be pending, or which may by 
 law be brought before him in his official capacity, or in his place 
 of trust or profit, or with intent to influence him to commit or aid in 
 committing, or to collude in, or allow, any fraud, or make oppor- 
 tunity for the commission of any fraud, on the United States, or to 
 induce him to do or omit to do any act in violation of his lawful 
 duty, shall be fined not more than three times the amount of money 
 or value of the thing so oifered, promised, given, made, or tendered, 
 or caused or procured to be so offered, promised, given, made, or 
 tendered, and imprisoned not more than three years. 
 
 An indictment for offering an internal-revenue officer a bribe to set tire 
 to a distillery situated within the limits of a State is not cognizable by 
 the Federal courts, since there are no common-law offenses against the 
 United States, and section 5451, which makes it a crime to offer to bribe 
 an officer of the United States with intent to influence him to do or omit 
 to do any act in violation of his lawful duty, applies only to acts within 
 the official functions of the officer. (United States ». Gibson, 47 Fed., 
 833. •) 
 
 "Any officer " of the United States. (United States v. Ingham, 97 
 Fed., 935.) 
 
 United States offlcen accepting bribes; penalty. 
 
 Sec. 117. [§§5501, 5502, E. S.J Whoever, being an officer of the 
 United States, or a person acting for or on behalf of the United 
 States, in any official capacity, under or by virtue of the authority 
 of any department or office of the Government thereof ; or whoever, 
 being an officer or person acting for or on behalf of either House of 
 Congress, or of any committee of either House, or of both Houses 
 thereof, shall ask, accept, or receive any money, or any contract, 
 promise, undertaking, obligation, gratuity, or security for the pay- 
 ment of money, or for the delivery or conveyance of anything of 
 value, with intent to have his decision or action on any question, 
 matter, cause, or proceeding which may at any time be pending, or 
 which may by law be brought before him in his official capacity, or 
 in his place of trust or profit, influenced thereby, shall be fined not 
 more than three times the amount of money or value of the thing so 
 asked, accepted, or received, and imprisoned not more than three 
 years; and shall, moreover, forfeit his office or place and thereafter 
 be forever disqualified from holding any office of honor, trust, or 
 profit under the Government of the United States. 
 
 King r. United States (112 Fed., 988) ; United States v. Boyer (85 
 Fed., 425; 17 Op. Atty. Gen., 419). 
 
 Sections 110, 112, 113, and 114 of the Criminal Code relate to Mem- 
 bers of Congress, Delegates in Congress, and Resident Commissioners 
 receiving bribes, etc. 
 
 Internal-revenue officer accepting bribes. (Sec. 3169, p. 98.) 
 
 District attorney or marshal accepting bribes. (Sec. .3170, p. 101.) 
 
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APPENDIX. 677 
 
 Extortion br Informers; ponaltr. 
 
 Sec. 145. [§5484, E. S.] Whoever shall, under a threat of inform- 
 ing, or as a consideration for not informing, against any violation 
 of any law of the United States, demand or receive any money or 
 other valuable thing, shall be find not more than two thousand dol- 
 lars, or imprisoned not more than one year, or both. 
 
 The words " law of the United States " substituted for " internal-reve- 
 nue law " in section 5484. 
 
 Extortion by officer, clerk, agent, or employee of the United States. 
 (Sec. 85 of the Criminal Code, act of March 4, 1909; 35 Stat, 1102.) 
 
 Extortion by internal-revenue officer or agent. ( Sec. 3169, p. 98. ) 
 
 Conspiracy to prevent persons from accepting or holding office nnder United States or to Injure 
 an officer In his person or property; penalty. 
 
 Sec. 21. [§5518, R. S.J If two or more persons in any State, Terri- 
 tory, or District conspire to prevent, by force, intimidation, or threat, 
 any person from accepting or holding any office, trust, or place of 
 confidence under the United States, or from discharging any duties 
 thereof; or to induce by like means any officer of the United States 
 to leave any State, Territory, District, or place, where his duties as 
 an offiicer are required to be performed, or to injure him in his person 
 or property on account of his lawful discharge of the duties of his 
 office, or while engaged in the lawful discharge thereof, or to injure 
 his property so as to molest, interrupt, hinder, or impede him in the 
 discharge of his official duties, each of such persons shall be fined 
 not more than five thousand dollars, or imprisoned not more than 
 six years, or both. 
 
 Conspiracy to defraud; penalty. 
 
 Sec. 37. [§5440, R. S.] If two or more persons conspire either to 
 commit any offense against the United States, or to defraud the 
 United States in any manner or for any purpose, and one or more of 
 such parties do any act to effect the object of the conspiracy, each 
 of the parties to such conspiracy shall be fined not more than ten 
 thousand dollars, or imprisoned not more than two years, or both. 
 
 This section was originally enacted as part of the internal-revenue act 
 of June 30, 1864 (13 Stat., 239), and so remained until the revision; now 
 it Is under the title " Offenses against the operation of the Govern- 
 ment " in the criminal code. 
 
 A conspiracy to defraud the Government, though it may be directed to 
 the revenue as its object, is punishable by the general law against all con- 
 spiracies, and can hardly be said, in any just sense, to arise under the 
 revenue laws. (United States v. Hirsch, 100 U. S. (10 Otto), 33; 25 
 Int. Rev. Rec, 375.) 
 
 What is conspiracy? (United States v. Rindskopf et al., 21 Int. Rev. 
 Rec., 326 ; Fed. Cas, No. 16165 ; United States v. Hamilton, 22 Int. Rev. 
 Rec, 106.) 
 
 There must be an overt act to make the offense complete. (Hyde v. 
 Shine, 199 U. S., 62.) 
 
 The mere combining or confederating to commit the fraud is sufficient 
 without actual perpetration of it, if any one of the parties has taken a 
 step toward its execution. (United States v. Callicott, Fed. Cas. No. 
 14710, 7 Int. Rev. Rec, 177.) 
 
 Declaration of co-conspirators. (United States v. McKee, 22 Int. Rev. 
 Rec, 57.) 
 
 Limitation on prosecution under this section. (United States v. Owen 
 et al., 34 Int. Rev. Rec, 3.) 
 
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678 APPENDIX. 
 
 History of the conspiracy to defraud the revenue of the tax on spirits 
 in St. Louis from 1871 to 1875. (United States ■;;. McKee, 3 Dill., 546; 
 Fed. Oas. No. 15686 ; United States v. Babcock, 3 Dill., 583 ; 22 Int. Rev. 
 Rec, 86.) 
 
 Requisites of indictment for conspiracy to defraud. (United States v. 
 Ulrici, 3 Dill., 532; Fed. Cas. No. 16594.) 
 
 An indictment charging conspiracy to " commit an offense against the 
 United States " must state an agreement to do acts which, if done, would 
 constitute a specific offense, and where an intent is an essential part 
 of such offense such intent must be averred. (United States v. Green, 
 136 Fed., 618.) 
 
 Definition of conspiracy. (United States v. Green, 146 Fed., 803.) 
 
 Indictment must set out overt acts. (United States v. Rogers, 226 
 Fed., 512.) 
 
 Conspiracy to defraud United States of tax on oleomargarine. (United 
 States V. Orr, 223 Fed., 220.) 
 
 Where purchases of narcotics by druggist were alleged as overt acts 
 in prosecution of physician and certain druggists for conspiracy to vio- 
 late Harrison Anti-Narcotic Act, purchases in exce"ss of those alleged 
 were provable as additional overt acts. (Friedman v. United States, 
 260 Fed., 388.) 
 
 Evidence of quantities of narcotics purchased by the druggists was 
 admissible. (Id.) 
 
 Evidence of number of narcotic prescriptions filled by the druggists 
 as compared with number filled by other druggists was admissible. 
 (Id.) 
 
 There may be a conspiracy to violate section 5 of the act of March 3, 
 1917 (39 Stat., 1069) by transporting liquor into a prohibition State, 
 Indictable under section 37 of the Criminal Code. (Laughter v. United 
 States, 259 Fed., 94.) 
 
 Destroying, carrying airay, etc., pnbllc records; penalty. 
 Sec. 128. [§5403, R. S.] Whoever shall willfully and unlawfully 
 conceal, remove, mutilate, obliterate, or destroy, or attempt to con- 
 ceal, remove, mutilate, obliterate, or destroy, or, with intent to con- 
 ceal, remove, mutilate, obliterate, destroy, or steal, shall take and 
 carry away any record, proceeding, map, book, paper, document, or 
 other thing, filed or deposited with any clerk or officer of any court 
 of the United States, or in any public office, or with any judicial or 
 public officer of the United States, shall be fined not more than two 
 thousand dollars, or imprisoned not more than three years, or both. 
 
 Destroying records by officer In charge; penalty. 
 
 Sec. 129. [§5408, E. S.] Whoever, having the custody of any 
 record, proceeding, map, book, document, paper, or other thing 
 specified in the preceding section, shall willfully and unlawfully con- 
 ceal, remove, mutilate, obliterate, falsify, or destroy any such record, 
 proceeding, map, book, document, paper, or thing, shall be fined not 
 more than two thousand dollars, or imprisoned not more than three 
 years, or both; and shall moreover forfeit his office and be forever 
 afterward disqualified from holding any office under the Government 
 of the United States. 
 Carrying away nitbont authority and Bulaivfally using papers relating to claims, etc.; penalty. 
 
 Sec. 40. [§5454, E. S.J Wlioever shall take and carry away, with- 
 out authority from the United States, from the place where it has 
 been filed, lodged, or deposited, or where it may for the time being 
 actually be kept by authority of the United States, any certificate, 
 affidavit, deposition, written statement of facts, power of attorney, 
 receipt, voucher, assignment, or other document, record, file, or paper, 
 prepared, fitted, or intended to be used or presented in order to pro- 
 cure the payment of /Rioney from or by the United States, or any 
 
APPENDIX. 679 
 
 officer or agent thereof, or the allowance or pa^yment of the whole or 
 any part of any claim, account, or demand against the United States, 
 whether the same has or has not already been so used or presented, 
 and whether such claim, account, or demand, or any part thereof, has 
 or has not already been allowed or paid; or whoever shall present, 
 use, or attempt to use, any such document, record, file, or paper so 
 taken and carried away, in order to procure the payment of any 
 money from or by the United States, or any officer or agent thereof, 
 or the allowance or pa;^ment of the whole or any part of any claim, 
 account, or demand against the United States, shall be fined not more 
 than five thousand dollars, or imprisoned not more than ten years, 
 or both. 
 
 Bobber; or larceny of personal property of the United States; penalty. 
 
 Sec. 46. [§5456, E. S.J ^Vlioever shall rob another of any kind or 
 description of personal property belonging to the United States, or 
 shall feloniously take and carry away the same, shall be fined not 
 more than five thousand dollars, or imprisoned not more than ten 
 years, or both. 
 
 Postage stamps personal property. (Jolly v. United States, 170 U. S., 
 402.) 
 
 Checks. (Keller v. United States, 168 Fed., 697.) 
 
 EmbeEzllng or stealing pnblic property or receiving and retaining In possession property stolen; 
 
 penalty. 
 
 Sec. 47. [Sec. 1, Act of March 3, 1876 {18 Stat., 479).] Whoever 
 shall embezzle, steal, or purloin any money, property, record, voucher, 
 or valuable thing whatever, of the moneys, goods, chattels, records, 
 or property of the United States, shall be fined not more than five 
 thousand dollars, or imprisoned not more than five years, or both. 
 Embezzlement. (United States v. Allen, 150 Fed., 152.) 
 
 Sec. 48. [Sec. B, Act of March 3, 1875 {18 Stat., 479) .] Whoever 
 shall receive, conceal, or aid in concealing, or shall have or retain in 
 his possession with intent to convert to his own use or gain, any 
 money, property, record, voucher, or valuable thing whatever, of the 
 moneys, goods, chattels, records, or property of the United States, 
 which has theretofore been embezzled, stolen, or purloined by any 
 other person, knowing the same to have been so embezzled, stolen, or 
 purloined, shall be fined not more than five thousand dollars, or im- 
 prisoned not more than five years, or both ; and such person may be 
 tried either before or after the conviction of the principal offender. 
 
 Forging, connterfelting, etc., bid, bond, pnblic record, etc.; penalty. 
 
 Sec. 28. [§§5418, 5479, E. S.J Whoever shall falsely make, alter, 
 forge, or counterfeit, or cause or procure to be falsely made, altered, 
 forged, or counterfeited, or willingly aid, or assist in the false mak- 
 ing, altering, forging, or counterfeiting, any bond, bid, proposal, con- 
 tract, guarantee, security, official bond, public record, affidavit, or 
 other writing for the purpose of defrauding the United States; or 
 shall utter or publish as true, or cause to be uttered or published as 
 true, or have in his possession with the intent to utter or publish as 
 true, any such false, forged, altered, or counterfeited bond, bid, pro- 
 posal, contract, guarantee, security, official bond, public record, affi- 
 Digifized by Microsoft® ' ^ ' 
 
680 APPENDIX. 
 
 davit, or other writing, for the purpose of defrauding the United 
 States, knowing the same to be false, forged, altered, or counter- 
 feited ; or shall transmit to, or present at, or cause or procure to be 
 transmitted to, or presented at, the ofiice of any oificer of the United 
 States, any such false, forged, altered, or counterfeited bond, bid, 
 proposal, contract, guarantee, security, official bond, public record, 
 affidavit, or other writing, knowing the same to be false, forged, 
 altered, or counterfeited, for the purpose of defrauding the United 
 States, shall be fined not more than one thousand dollars, or im- 
 prisoned not more than ten years, or both. 
 
 Counterfeiting United States secnritles and stamps; penalty. 
 
 Sec. 148. [§5414, R. S.] Wlioever, with intent to defraud, shall 
 falsely make, forge, counterfeit, or alter any obligation or other 
 security of the United States shall be fined not more than five thou- 
 sand dollars and imprisoned not more than fifteen years. 
 
 Sec. 147. [§5413, E.. S.] The words " obligation or other security of 
 the United States" shall be held to mean all bonds, certificates of 
 indebtedness, national-bank currency, coupons, United States notes. 
 Treasury notes, gold certificates, silver certificates, fractional notes, 
 certificates of deposit, bills, checks, or drafts for money, drawn by or 
 upon authorized officers of the United StateSj stamps and other repre- 
 sentatives of value, of whatever denomination, which have been or 
 may be issued under any Act of Congress. 
 
 See also sections 151, 152, 153, 154, R. S. 
 
 Counterfeit money, act of February 10, 1891. (United States v. KnM 
 (1898), 85 Fed., 624.) 
 
 Counterfeiting, etc., revenue stamps and punisliment for. Section 7, 
 act of October 22, 1914 (38 Stat., 754), and section 8, act of April 9, 
 1912 (37 Stat., 82). 
 
 Malting or presenting false, fictitious, or frandulent claims; penalty. 
 
 Sec. 35. [§5438, R. S.j Whoever shall make or cause to be made, or 
 present or cause to be presented, for payment or approvalj to or by 
 any person or officer in the civil, military, or naval service of the 
 United States, any claim upon or against the Government of the 
 United States, or any department or officer thereof, knowing such 
 claim to be false, fictitious, or fraudulent ; or whoever, for the pur- 
 pose of obtaining or aiding to obtain the payment or approval of 
 such claim, shall make or use, or cause to be made or used, any false 
 bill, receipt, voucher, roll, account, claim, certificate, affidavit, or 
 deposition, knowing the same to contain any fraudulent or fictitious 
 statement or entry ; or whoever shall enter into any agreement, com- 
 bination, or conspiracy to defraud the Government of the United 
 States, or any department or officer thereof, by obtaining or aiding to 
 obtain the payment or allowance of any false or fraudulent claim; 
 or whoever, having charge, possession, custody, or control of any 
 money or other public property used or to be used in the military 
 or naval service, with intent to defraud the United States or willfully 
 to conceal such money or other property, shall deliver or cause to be 
 delivered, to any other person having authority to receive the same,- 
 any amount of such money or other property less than that for 
 which he received a certificate or took a receipt; or whoever, being 
 
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APPENDIX. 681 
 
 authorized to make or deliver any certificate, voucher, receipt, or 
 other paper certifying the receipt of arms, ammunition, provisions, 
 clothing, or other property so used or to be used, shall make or de- 
 liver the same to any other person without a full knowledge of the 
 truth of the facts stated therein, and with intent to defraud the 
 United States, shall be fined not more than five thousand dollars, or 
 imprisoned not more than five years, or both. And whoever shall 
 knowingly purchase or receive in pledge for any obligation or in- 
 debtedness from any soldier, officer, sailor, or other person called into 
 or employed in the military or naval service, any arms, equipments, 
 ammunition, clothes, military stores, or other public property, whether 
 furnished to the soldier, sailor, officer, or person, under a clothing 
 allowance or otherwise, such soldier, sailor, officer, or other person 
 not having the lawful right to pledge or sell the same, shall be fined 
 not more than five hundred dollars, and imprisoned not more than 
 two years. 
 
 Deputy marshal presenting false claim. (United States v. Strobach, 
 48 Fed., 902.) 
 
 ProTtstonB of the Criminal Cede relatiTe to tutenrtate shipments of dlstiUed spirits. 
 
 AN ACT To codlsEy, revise, and amend the penal laws of the United States, ap- 
 proved March 4, 1909 (35 Stat., 1136), taking effect January 1, 1910. 
 
 Sec. 238. Any officer, agent, or employee of any railroad company, 
 express company, or other common carrier, who shall knowingly 
 deliver or cause to be delivered to any person other than the person 
 to whom it has been consigned, unless upon the written order in. each 
 instance of the bona fide consignee, or to any fictitious person, or to 
 any person under a fictitious name, any spirituous, vinous, malted, 
 fermented, or other intoxicating liquor of any kind which has been 
 shipped from one State, Territory, or District of the United States, 
 or place noncontiguous to but subject to the jurisdiction thereof, into 
 any other State, Territory, or District of the United States, or place 
 noncontiguous to but subject to the jurisdiction thereof, or from 
 any foreign country into any State, Territory, or District of the 
 United States, or place noncontiguous to but subject to the juris- 
 diction thereof, shall be fined not more than five thousand dollars, 
 or imprisoned not more than two years, or both. 
 
 Sec. 239. Any railroad company, express company, or other com- 
 mon carrier, or any other person who, in connection with the trans- 
 portation of any spirituous, vinous, malted, fermented, or other 
 intoxicating liquor of any kind, from one State, Territory, or District 
 of the United States, or place noncontiguous to but subject to the 
 jurisdiction thereof, into any other State, Territory, or District of the 
 United States, or place noncontinguous to but subject to the jurisdic- 
 tion thereof, or from any foreign country into any State, Territory, 
 or District of the United States, or place noncontiguous to but subject 
 to the jurisdiction thereof, shall collect the purchase price or any part 
 thereof, before, on, or after delivery, from the consi^ee, or from any 
 other person, or shall in any manner act as the agent of the buyer or 
 seller of any such liquor, for the purpose of buying or selling or com- 
 pleting the sale thereof, saving only in the actual transportation and 
 delivery of the same, shall be fined not more than five thousand 
 
 '^^'l^^^s- Digitized by Microsoft® 
 
682 
 
 APPENDIX. 
 
 Sec. 240. Whoever shall knowingly ship or cause to be shipped, 
 from one State, Territory, or District of the United States, or place 
 noncontiguous to but subject to the jurisdiction thereof, into any 
 other State, Territory, or District of the United States, or place non- 
 contiguous to but subject to the jurisdiction thereof, or from any 
 foreign country into any State, Territory, or District of the United 
 States, or place noncontiguous to but subject to the jurisdiction 
 thereof, any package of or package containing any spirituous, vinous, 
 malted, fermented, or other intoxicating liquor of any kind, unless 
 such package be so labeled on the outside cover as to plainly show 
 the name of the consignee, the nature of its contents, and the quan- 
 tity contained therein, shall be fined not more than five thousand 
 dollars ; and such liquor shall be forfeited to the United States, and 
 may be seized and condemned by like proceedings as those provided 
 by law for the seizure and forfeiture of property imported into the 
 United States contrary to law. 
 
 Labeling of liquors under section 240, Criminal Code, act of March 4, 
 1909 (35 Stat., 1137). Instructions to customs officers. (28 Op. Atty. 
 Gen., 99, December 16, 1909; T. D. 30393.) 
 
 Sections 238, 239, and 240 of the Criminal Code, effective January 1, 
 1910, are part of Chapter IX, entitled " Offenses against foreign and 
 interstate commerce," and are not required to be enforced through the 
 office of Internal Revenue. (T. D. 1589.) 
 
 Criminal Code, modification of T. D. i58S.-^Instructions to revenue 
 officers relative to seizure of property forfeited for violation of section 
 240 of the Penal Code, effective January 1, 1910— According to Attorney 
 General, right to seize vested in any person. (T. D. 1610.) 
 
 Carriers are prohibited from giving information concerning shipments 
 handled by them, except in response to legal process from the court 
 or proper State or United States officer. (Sec. 15, act February 4, 1887, 
 "An act to regulate commerce," amended by sec. 12, act June 18, 1910, 
 36 Stat, 551.) 
 
 Constitutionality of proposed liquor law. (30 Op. Atty. Gen., 88.) 
 
 Shipment of liquor as baggage. (T. D. 2437.) 
 
 A bank collecting a draft attached to a bill of lading for liquor trans- 
 ported in interstate commerce from the purchaser not vnthin the statute. 
 (Danciger v. Stone, 188 Fed., 511; United States v. Bank of Anamooge, 
 206 Fed., 374; 29 Op. Atty. Gen., 59.) 
 
 Chapter 4. 
 
 CLAIMS— PAYMENT TO PERSON IN ARREARS— SET-OFFS-CREDITS, 
 
 ETC. 
 
 Claims. 
 
 No payment to person in arrears to the 
 United States. 
 
 Set-offs and credits. 
 
 Priority of United States in insolvent 
 estates. 
 
 Permanent annual appropriations. 
 
 No expenditures beyond appropria- 
 tions. 
 
 Heads of Departments prohibited from 
 accepting voluntary service for the 
 Government . 
 
 Unauthorized contracts prohibited. 
 
 Unexpended balances of appropria- 
 tions. 
 
 Assignment of claims void, unless, etc. 
 
 Attorneys before the Treasury Depart- 
 ment. 
 
 Duplicate checks when original is lost. 
 
 Letters, packages, etc., on Government 
 business sent free ; penalty envelopes. 
 
 Government to have priority in the 
 transmission of telegrams. 
 
 Disposition of useless papers. 
 
 Clalmt to be adjnsted In the TreasoT; Department. 
 
 Sec. 236. All claims and demands whatever by the United States or 
 against them, and all /3^,^,iJ|^j(jW^j^:^5^which the United States 
 
APPENDIX. 683 
 
 are concerned, either as debtors or as creditors, shall bo settled and 
 adjusted in the Department of the Treasury. 
 
 The doctrine that the United States can not be sued without its con- 
 sent examined and reaflSrmed. (United States v. Lee, 106 U. S., 196; 
 29 Int. Rev. Rec, 1.) 
 
 The United States, by various acts of Congress, have consented to be 
 sued in their own courts in certain classes of cases ; but they have never 
 consented to be sued in the courts of a State in any case. (Stanley v. 
 Schwalby, 162 U. S., 255.) 
 
 The United States have never, either by the act of March 3, 1887, or by 
 anv other law, permitted themselves to be sued for torts committed by 
 their officers. (Hill v. United States, 149 U. S., 593.) 
 
 A court of claims was created by the act of February 24, 1855 (sec. 
 1049). Cases arising under the revenue laws not within the jurisdiction 
 of the Court of Claims. (Nichols i\ United States, 7 Wall., 129.) In 
 view of subsequent statutes, the broad statement In the Nichols case. 
 If still true, it was held in Dooley v. United States, 182 U. S., 222, 225, 
 must be accepted with material qualifications, and it was decided that 
 the Court of Claims had jurisdiction of claim to recover duties illegally 
 exacted upon merchandise alleged not to have been imported from a 
 foreign country. 
 
 .Jurisdiction of the Court of Claims. "The Judicial Code" (act of 
 March 3, 1911, sec. 145, 36 Stat., 1087). 
 
 Section 148, Judicial Code, as to head of department transmitting claims 
 to the Court of Claims. (Hart v. United States, 15 Ct. Cls., 414; United 
 States V. New York, 160 U. S., 598.) 
 
 The limitation of two years (see. 3227) applies in internal revenue 
 cases brought under act of March 3, 1887, against the United States and 
 not six years as provided by act. (Christie St. Com. Co. v. United States, 
 136 Fed., 326.) 
 
 State claims. (Waddell v. United States, 25 Ct. Cls., 323; State of 
 New Hampshire v. United States, 36 Ct. Cls., 568 ; 9 Op. Atty. Gen., 204.) 
 
 The rule that a final decision upon a knowledge of all the facts made 
 by an officer authorized to decide on claims against the Government is 
 not liable to be reopeiu'd and reviewed by his successor in office unless 
 the decision is founded on mistakes in matters of fact arising from errors 
 in calculation, or the absence of material testimony afterwards dis- 
 covered and produced, is well established. (United States v. Bank of 
 Metropolis, 15 Pet., 377; Rollins and Presbrey v. United States, 23 Ct. 
 Cls., 123; 10 Op. Atty. Gen., 56; 19 Ct. Cls., 505.) 
 
 Attorney General Taney said : " For If a final decision, upon a knowl- 
 edge of all the facts, made by an officer authorized to decide on claims 
 against the Government, is liable to be opened and reviewed by his suc- 
 cessor In office, every change in the officer wUl produce a new hearing 
 of the claim, and the accounts of the Government will always remain 
 open and unsettled." (2 Op. Atty. Gen., 464 ; see also 14 Op. Atty. Gen., 
 275 ; 18 Int. Rev. Rec, 28, and cases there cited ; also 13 Op. Atty. Gen., 
 388, 457; 19 Comp. Dec, 110.) 
 
 When an account has once been adjusted by the accounting officers, it 
 can not be reopened unless relief is afforded by special act. (4 Op. Atty. 
 Gen., 378; 12 Id., 386.) 
 
 A decision in the Court of Claims, while it is not binding, is authority 
 for the head of a department to reopen a case. (9 Op. Atty. Gen. 
 (Black), 422.) 
 
 The accounting officers of the Treasury are not authorized to reopen 
 accounts for the purpose of correcting decisions upon questions of law 
 subsequently held to be erroneous. (VI Comp. Dec, 91.) 
 
 The principle of res adjudicata applies to departmental action of a 
 final nature. (20 Op. Atty. Gen., 280; XI Comp. Dec, 459, 676; Day v. 
 United States, 21 Ct. Cls., 262.) 
 
 New evidence discovered. (IX Comp. Dec, 107.) 
 
 Not the duty of a head of department to make estimates for appropria- 
 tions to pay claims which the law does not provide for. (Pitman et al. 
 V. United States, 20 Ct. Cls., 253.) 
 
 Accounting officers can not revise judgments of court. (O'Grady v. 
 
 United States, 22 Y^^JtizM-by Microsoft® 
 
684 APPENDIX. 
 
 Subpoenas to Trltnesses In matters relating to claims. 
 
 Sec. 184. Any head of a Department or Bureau in which a claim 
 against the United States is properly pending may apply to any judge 
 or clerk of any court of the United States, in any State, District, or 
 Territory, to issue a subpoena for a witness being within the juris- 
 diction of such court, to appear at a time and place in the subpoena 
 stated, before any officer authorized to take depositions to be used in 
 the courts of the United States, there to give full and true answers 
 to such written interrogatories and cross-interrogatories as may be 
 submitted with the application, or to be orally examined and cross- 
 examined upon the subject of such claim. 
 
 Ko payment to person In arrears to the United States. 
 
 Seo. 1766. No money shall be paid to any person for his compensa- 
 tion who is in arrears to the United States, until he has accounted for 
 and paid into the Treasury all sums for which he may be liable. In 
 all cases where the pay or salary of any person is withheld in pursu- 
 ance of this section, the accounting officers of the Treasury, if re- 
 quired to do so by the party, his agent or attorney, shall report forth- 
 with to the Solicitor of the Treasury the balance due ; and the So- 
 licitor shall, within sixty days thereafter, order suit to be commenced 
 against such delinquent and his sureties. 
 
 Set-offs. (Bonnafon's case, 14 Ct. Cls., 484; Taggart's ease, 17 Ct. Cls., 
 322 ; 28 Int. Rev. Rec, 162 ; 17 Op. Atty. Gen., 677 ; McKni^t v. United 
 States, 98 U. S., 179.) 
 
 Money offered in compromise can not be set off against taxes assessed. 
 (Boughton V. United States, 13 Ct. Cls., 284.) 
 
 The salary of a Federal judge can not be withheld to meet a judgment 
 recovered against him as surety for a former Government employee. 
 (20 Op. Atty. Gen., 627.) 
 
 Meaning and scope of section 1766, where a clerk is a judgment debtor 
 of the United States. (26 Op. Atty. Gen., 77.) 
 
 Dednctlon of delbt duo the United States from any Judgment recovered or claim alloned. 
 
 [Act of March 3, 1875 (18 Stat, 481).] 
 
 That when any final judgment recovered against the United States 
 or other claim duly allowed by legal authority, shall be presented to 
 the Secretary of the Treasury for payment, and the plaintiff or 
 claimant therein shall be indebted to the United States in any manner, 
 whether as principal or surety, it shall be the duty of the Secretary 
 to withhold payment of an amount of such judgment or claim equal 
 to the debt thus due to the United States; and if such plaintiff or 
 claimant assents to such set-off, and discharges his judgment or an 
 amount thereof equal to said debt or claim, the Secretary shall exe- 
 cute a discharge of the debt due from the plaintiff to the United 
 States. 
 
 But if such plaintiff, or claimant, denies his indebtedness to the 
 United States, or refuses to consent to the set-off, then the Secretary 
 shall withhold payment of such further amount of such judgment, or 
 claim, as in his opinion will be sufficient to cover all legal charges and 
 costs in prosecuting the debt of the United States to final judgment. 
 
 And if such debt is not already in suit, it shall be the duty of the 
 Secretary to cause leg^y|f|ig^^j|;^(^|»gy^mediately commenced to 
 
APPENDIX. 685 
 
 enforce the same, and to cause the same to be prosecuted to final judg- 
 ment with all reasonable dispatch. 
 
 And if in such action judgment shall be rendered against the 
 United States, or the amount recovered for debt and costs shall be 
 less than the amount so withheld as before provided, the balance shall 
 then be paid over to such plaintiff by such Secretary with six per 
 cent interest thereon for the time it has been withheld from the 
 plaintiff. 
 
 As to interest, see Stephani's case (26 Int. Rev. Rec, 314), and section 
 966, p. 649. 
 
 Sanborn's case, decision of First Comptroller. (28 Int. Rev. Rec, 
 265). 
 
 Snlts of Tlnlted States against IndlTidnals; what credits allovred. 
 
 Sec. 951. In suits brought by the United States against individuals, 
 no claim for a credit shall be admitted, upon trial, except such as 
 appear to have been presented to the accounting oiScers of the 
 Treasury, for their examination, and to have been by them disallowed, 
 in whole or in part, unless it is proved to the satisfaction of the court 
 that the defendant is, at the time of the trial, in possession of 
 vouchers not before in his power to procure, and that he was pre- 
 vented from exhibiting a claim for such credit at the Treasury by 
 absence from the United States or by some unavoidable accident. 
 
 Section 957, page 672. 
 
 United States v. Kimball (101 U. S. (11 Otto), 725) ; Western Union 
 Railroad Co. v. United States (101 U. S., 543; 26 Int. Rev. Rec, 165). 
 
 In an action by the United States to recover an alleged debt, the de- 
 fendant can not recover an affrmative judgment against the Government 
 on a counter claim, although it may be determined that there Is a bal- 
 ance due him, (United States v. Gillies, 144 Fed., 991; United States v. 
 Pierson, 145 Fed., 814. ) 
 
 Counter claims ; statute does not authorize a judgment for an excess 
 against the Government. (United States v. Nipissing Mines Co., 206 
 Fed., 431.) 
 
 Piloilt; of TTnlted Statea In Insolvent estates. 
 
 Sec. 3466. Whenever any person indebted to the United States is 
 insolvent, or whenever the estate of any deceased debtor, in the hands 
 of the executors or administrators, is insufficient to pay all the debts 
 due from the deceased, the debts due to the United States shall be 
 first satisfied; and the priority hereby established shall extend as 
 well to cases in which a debtor, not having sufficient property to pay 
 all his debts, makes a voluntary assignment thereof, or in which the 
 estate and effects of an absconding, concealed, or absent debtor are 
 attached by process of law, as to cases in which an act of bankruptcy 
 is committed. 
 
 Lewis, trustee, v. United States. (92 U. S., 618; 22 Int. Rev. Rec, 186.) 
 Act of July 1, 1898 (30 Stat., 544-566), to establish a uniform system 
 of bankruptcy throughout the United States, amended by acts of Feb- 
 ruary 5, 1903, June 15, 1906, and June 25, 1910. 
 Debts which have priority. (Sec. 64, act of July 1, 1898.) 
 A discharge in bankruptcy does not release a bankrupt from taxes due. 
 
 (Sec. 17, act of July 1, 1898.) 
 Penalty can not be collected from a bankrupt unless Government has 
 
 suffered a pecuniary loss. (Sec. 57, act of July 1, 1898.) 
 
 Taxes entitled to priority. (Title Guaranty & Surety Co. v. Guarantee 
 
 Title & T. Co., 174 Fed., 888; in re Weissman, 178 Fed., 115.) 
 
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686 APPENDIX. 
 
 The right of the United States to priority of payment does not ex- 
 tinguish or supersede a specific lien. (United States v. Duncan, 4 
 McLean, 607; 9 Op. Atty. Gen., 28.) 
 
 The right to priority is not a lien upon the debtor's property, but a 
 right to receive payment out of the general estate or funds of the debtor 
 before other claims are satisfied. (United States v. Eggleston, 23 Int. 
 Rev. Rec, 113.) 
 
 Procedure in case of property assessed in hands of receiver. (T. D. 
 667.) 
 
 LUbllltT of execntoTB, etc., to United States. 
 
 Sec. 3467. Every executor, administrator, or assignee, or other 
 person, who pays any debt due by the person or estate from whom or 
 for which he acts, before he satisfies and pays the debts due to the 
 United States from such person or estate, shall become answerable in 
 his own person and estate for the debts so due to the United States, or 
 for so much thereof as may remain due and unpaid. 
 
 The priority of the United States, under the provisions of sections 3466 
 and 3467, R. S., extends to all classes of debts, and to all the debtor's 
 estate which comes to the hands of his assignee. The assignee becomes 
 a trustee for the United States, and, when he has notice of the debt due 
 the Government, he can not escape personal liability for the amount of 
 it, to the extent of the value of the assets coming to his hands, if he fails 
 to provide for it before making distribution to other creditors. (United 
 States V. Barnes, 31 Fed., 70.5.) 
 
 PermaDent annual appropriations. 
 
 Sec. 3689. There are appropriated, out of any moneys in the 
 Treasury not otherwise appropriated, for the purposes hereinafter 
 specified, such sums as may be necessary for the same respectively; 
 and such appropriations shall be deemed permanent annual appro- 
 priations. 
 
 ******* 
 
 Refunding moneys erroneously received and covered : 
 To refund moneys received and covered into the Treasury before 
 the payment of legal and just charges against the same. 
 
 )); ^ rf< SfC Sf! Sf! S)C 
 
 Allowances and drawbacks (internal revenue) : 
 
 Indefinite appropriation to pay allowance or drawback on articles 
 on which any internal duty or tax shall have been paid when said 
 articles are exported under the act of July one, eighteen hundred and 
 sixty-two, chapter one hundred and nineteen [section three thousand 
 four hundred and forty-one] . 
 
 See as to appropriation to pay drawback on tobacco, section 3886, page 
 276. No appropriation is made for paying drawback on stills allowable 
 under act of March 1, 1879. 
 
 Refunding taxes illegally collected (internal revenue) : ^ 
 To refund and pay back duties erroneously or illegally assessed or 
 collected under the internal-revenue laws. 
 
 1 Section 1316(c) of the act of February 24, 1919, provides as foUows : " That the para- 
 graph of section 3689 of the Revised Statutes, as amended, reading as follows : ' Refund- 
 ing taxes illegally collected (Internal revenue) : To refund and pay back duties erroneously 
 or illegally assessed or collected under the internal-revenue laws,' is repealed from ana 
 after June 30, 1920 ; and the Secretary of the Treasury shall submit tor the fiscal year 
 1921, and annually thereafter, an estimate of appropriations to refund and pay back 
 duties or taxes erroneously or illegally assessed or collected under the internal-revenue 
 laws, and to pay judgments, including interest and costs, rendered for taxes or penalties 
 erroneously or Illegally assessed or collected under the internal-revenue laws." 
 
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APPEKDIX. 687 
 
 Redemption of stamps (internal revenue) : 
 
 Of such sum of money as may be necessary to repay the amount or 
 value paid for internal-revenue' stamps Avhich may have been spoiled, 
 destroyed, or rendered useless or unfit for the purpose intended, or 
 which through mistake may have been improperly or unnecessarily 
 used. 
 
 So much of this section as provided a permanent annual appropriation 
 of 1 per centum of the entire debt of the United States to be set apart 
 as a sinking fund, was repealed by section 6 (b) of act of March 3, 
 1919 (40 Stat. 1312). 
 
 A permanent annual appropriation is subject to the same limitations 
 as appropriations enacted annually. (22 Oomp. Dec, 295.) 
 
 Application of moneys appropriated. 
 
 Sec. 3678. All sums appropriated for the various branches of ex- 
 penditure in the public service shall be applied solely to the objects 
 for which they are respectively made, and for no others. 
 
 No expenditures In excess of appropriations — Penalty for violation. 
 
 Sec. 3679. [Amended by sec. 4, omt of March 3, 1905 {33 Stat., 
 1214, 1^67) and sec. 3, act of February 27, 1906 {34 Stat., 49).'] 
 No Executive Department or other Government establishment of 
 the United States shall expend, in any one fiscal year, any sum in 
 excess of appropriations made by Congress for that fiscal year, or 
 involve the Government in any contract or other obligation for the fu- 
 ture payment of money in excess of such appropriations unless such 
 contract or obligation is authorized by law. Nor shall any Depart- 
 ment or any officer of the Government accept voluntary service for 
 the Government or employ personal service in excess of that au- 
 thorized by law, except in cases of sudden emergency involving the 
 loss of human life or the destruction of property. All appropriations 
 made for contingent expenses or other general purposes, except ap- 
 propriations made in fulfillment of contract obligations expressly 
 authorized by law, or for objects required or authorized by law with- 
 out reference to the amounts annually appropriated therefor, shall, 
 on or before the beginning of each fiscal year, be so apportioned by 
 monthly or other allotments as to prevent expenditures in one por- 
 tion of the year which may necessitate deficiency or additional appro- 
 priations to complete the service of the fiscal year for which said 
 appropriations are made; and all such apportionments shall be ad- 
 hered to and shall not be waived or modified except upon the hap- 
 pening of some extraordinary emergency or unusual circumstance 
 which could not be anticipated at the time of making such apportion- 
 ment, but this provision shall not apply to the contingent appropria- 
 tions of the Senate or House of Representatives; and in case said 
 apportionments are waived or modified as herein provided, the same 
 shall be waived or modified in writing by the head of such Execu- 
 tive Department or other Government establishment having control 
 of the expenditure, and the reasons therefor shall be fully set forth 
 in each particular case and communicated to Congress in connection 
 with estimates for any additional appropriations required on account 
 thereof. Any person violating any provision of this section shall be 
 
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688 APPENDIX. 
 
 summarily removed from office and may also be punished by a fine 
 of not less than one hundred dollars or by imprisonment for not less 
 than one month. 
 
 AppoTtionment of amount to be txpended hj each boresn — pmchaiei limited to contingent fnnds. 
 
 Sec. 6. [Act of August 23, 1912 {37 Stat., JiH).} That in addition 
 to the apportionment required by the so-called antideficiency act, 
 approved '.February twenty-seventh, nineteen hundred and six (Stat- 
 utes at Large, volume thirty-four, page forty-nine), the head of each 
 executive department shall, on or before the beginning of each fiscal 
 year, apportion to each office or bureau of his department the maxi- 
 mum amount to be expended therefor during the fiscal year out of 
 the contingent fund or funds appropriated for the entire year for the 
 department, and the amounts so apportioned shall not be increased 
 or diminished during the year for which made except upon the writ- 
 ten direction of the head of the department, in which there shall be 
 fully expressed his reasons therefor; and hereafter there shall not 
 be purchased out of any other fund any article for use in any office or 
 bureau of any executive department in Washington, District of 
 Columbia, which could be purchased out of the appropriations made 
 for the regular contingent funds of such department or of its offices 
 or bureaus. 
 
 Sec. 9. {Act of Jime 30, 1906 {3Jp Stat., 76^).] No act of Congress 
 hereafter passed shall be construed to make an appropriation out of 
 the Treasury of the United States, or to authorize the execution of a 
 contract involving the payment of money in excess of appropriations 
 made by law, unless such Act shall in specific terms declare an ap- 
 propriation to be made or that a contract may be executed. 
 
 By the act of July 7, 1884, deficiency appropriation act (23 Stat, 254), 
 the Secretary of the Treasury is required to report to Congress at the 
 commencement of each session amount due claimants upon claims allowed 
 in whole or in part. 
 
 When a claim must be certified to Congress for an appropriation. (22 
 Compt. Dec, 294.) 
 
 Unanthorlzed contracts prohibited. 
 
 Sec. 3732. No contract or purchase on behalf of the United States 
 shall be made, unless the same is authorized by law, or is under an 
 appropriation adequate to its fulfillment, except in the War and 
 Navy Departments, for clothing, subsistence, forage, fuel, quarters, 
 or transportation, which, however, shall not exceed the necessities 
 of the current year. 
 
 19 Op. Atty. Gen., 650. 
 
 Expenditure of balances of appropriation!. 
 
 Sec. 3690. All balances of appropriations contained in the annual 
 appropriation bills, and made specifically for the service of any fiscal 
 year, and remaining unexpended at the expiration of such fiscal year, 
 shall only be applied to the payment of expenses properly incurred 
 during that year, or to the fulfillment of contracts properly made 
 within that year ; and balances not needed for such purposes shall be 
 
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APPENDIX. 689 
 
 carried to the surplus fund. This section, however, shall not apply 
 to appropriations known as permanent or indefinite appropriations. 
 
 Department Circular No. 133, dated December 1.5, 1903, requires that 
 all unexpended balances of annual appropriations be deposited to the 
 credit of the Treasurer of the United States as soon as practicable after 
 the expiration of the fiscal year for which they were made. 
 
 Tnexpended balancen of appTOpriatlong alter two years to be coTered Into Treaiury. 
 
 Sec. 5. [Act of Jwie 20, 187 Jf. {18 Stat., 110) .] That from and after 
 the first day of July, eighteen hundred and seventy-four, and of 
 each year thereafter, the Secretary of the Treasury shall cause all 
 unexpended balances of appropriations which shall have remained 
 upon the books of the Treasury for two fiscal years to be carried to 
 the surplus fund and covered into the Treasury: 
 
 Provided, That this provision shall not apply to permanent specific 
 appropriations. * * * 
 
 XI Comp. Dec, 400. 
 
 Funds in the hands of disbursing officers. (15 Op. Atty. Gen., 357.) 
 
 Sec. 10. [Act of March 4, 1909 {35 Stat., 1027).] The Secretary 
 of the Treasury shall cause all unexpended balances of appropria- 
 tions which remained on the books of the Treasury oii the first day 
 of July, nineteen hundred and four, except permanent specific appro- 
 priations, judgments and findings of courts, trust funds, and appro- 
 priations for fulfilling treaty obligations with the Indians, to be 
 carried to the surplus fund and covered into the Treasury: Pro- 
 vided, That such sums of said balances as may be needed to pay con- 
 tracts existing and not fully discharged at the date of this Act shall 
 remain available for said purposes. For the purposes herein declared 
 no appropriation made prior to July first, nineteen hundred and 
 four, shall be construed to be a permanent specific appropriation 
 unless by its language it is specifically and in express terms made 
 available for use until expended. 
 
 Dept. CIr. No. 133, December 15, 1903. 
 
 Adrances of public monejra prohibited. 
 
 Sec. 3648. No advance of public money shall be made in any case 
 
 whatever. And in all cases of contracts for the performance of any 
 
 service, or the delivery of articles of any description, for the use of 
 
 the United States, payment shall not exceed the value of the service 
 
 rendered, or of the articles delivered previously to such payment. It 
 
 shall, however, be lawful, under the special direction of the President, 
 
 to make such advances to the disbursing officers of the Government 
 
 as may be necessary to the faithful and prompt discharge of their 
 
 respective duties, and to the fulfillment of the public engagements. 
 * * * 
 
 XII Comp. Dec, 67. 
 
 AsBlgnment of claims void, unless, etc. 
 
 Sec. 3477. All transfers and assignments made of any claim upon 
 the United States, or of any part or share thereof, or interest therein, 
 whether absolute or conditional, and whatever may be the considera- 
 
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690 APPENDIX. 
 
 tion therefor, and all powers of attorney, orders, or other authorities 
 for receiving payment of any such claim, or of any part or share 
 thereof, shall be absolutely null and void, unless they are freely made 
 and executed in the presence of at least two attesting witnesses, after 
 the allowance of such a claim, the ascertainment of the amount due, 
 and the issuing of a warrant for the payment thereof. Such trans- 
 fers, assignments, and powers of attorney, must recite the warrant for 
 payment, and must be acknowledged by the person making them, be- 
 fore an officer having authority to take acknowledgment of deeds, 
 and shall be certified by the officer ; and it must appear by the certifi- 
 cate that the officer, at the time of the acknowledgment, read and 
 fully explained the transfer, assignment, or warrant of attorney to 
 the person acknowledging the same. 
 
 United States v. Gillis (95 U. S., 407) ; Spofford v. Kirk (79 U. S., 
 484) ; McKnight v. United States (98 U. S., 185) ; Goodman v. Niblack 
 (102 U. S., 560; 11 Op. Atty. Gen., 520; 16 Id., 262) ; Lopez v. United 
 States (35 Int. Rev. Rec, 31; 17 Op. Atty. Gen., 545) ; Price v. Forrest 
 (173 U. S., 410). 
 
 Payment to attorney in fact holding unrevoked power of attorney 
 executed prior to allowance of claim good as between the Government and 
 claimant. (Bailey et al. v. United States, 109 U. S., 432; 29 Int. Rev. 
 Rec., 420.^ 
 
 This section does not apply to transfers by operation of law (Brwin v. 
 United States, 97 U. S., 392; Butler v. Goreley, 146 U. S., 303). 
 
 Indorsement and payment of Treasury warrants. (See Dept. Cir. No. 
 41, Apr. 23, 1902.) 
 
 Assignment of claims — laws and decisions considered. (VI Comp. 
 Dec. 101; 22 Op. Atty. Gen., 637; 25 Id., 279; 17 Comp. Dec, 467.) 
 
 Power of attorney for indorsement of checks in payment of claims. 
 (Dept. Cir. No. 21, Oct. 28, 1913.) 
 
 Attorneys before the Treasury Department. 
 
 Sec. 3. [Act of July 7, 188Jp {23 Stat., 258).] * * * That the 
 Secretary of the Treasury may prescribe rules and regulations gov- 
 erning the recognition of agents, attorneys, or other persons repre- 
 senting claimants before his Department, and may require of such 
 persons, agents, and attorneys, before being recognized as repre- 
 sentatives of claimants, that they shall show that they are of good 
 character and in good repute, possessed of the necessary qualifica- 
 tions to enable them to render such claimants vahiable serAdce, and 
 otherwise competent to advise and assist such claimants in the 
 presentation of their cases. And such Secretary may, after due 
 notice and opportunity for hearing, suspend and disbar from fur- 
 ther practice before his Department any such person, agent, or at- 
 torney, shown to be incompetent, disreputable, or who refuses to 
 comply with the said rules and regulations, or who shall with intent 
 to defraud, in any manner willfully and knowingly deceive, mislead, 
 or threaten any claimant or prospective claimant, by word, circular, 
 letterj or by advertisement. 
 
 Drafts in payment of claims to be delivered to claimant, and not to 
 attorneys. (32 Int. Rev. Rec, 325.) 
 
 Regulations governing attorneys and agents practicing before the 
 Treasury Department. (Dept. Cir. No. 13, Feb. 6, 1886; Dept. Cir. No. 
 94, Oct. 14, 1890; 36 Int. Rev. Rec, 327.) 
 
 Delivering warrants to attorneys. (25 Op. Atty. Gen., 279.) 
 
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APPENDIX. 691 
 
 Use of nun* of Kemben of Confrcss by one practicing before department of GoTernment. 
 
 Sec. 1. [Act of April 27, 1916 {39 Stat., 6^).] That it shall be un- 
 lawful for any person, firm, or corporation practicing before any de- 
 partment or office- of the Government to use the name of any Member 
 of either House of Congress or of any officer of the Government in 
 advertising the said business. 
 
 Sec. 2. That this Act shall take effect three months after its date. 
 
 Duplicate checks anthorlzad irheneTer any original check Is lost, stolen, or destroyed. 
 
 Sections 3646 and 3647, amended by the act of February 23, 1909. (35 
 Stat., 643.) Regulations No. 2, revised, page 102. Section 3646, amended 
 by act of March 21, 1916 (.39 Stat., 37) ; 30 Op. Atty. Gen., 66 (Dept. Oir. 
 No. 54, Feb. 7, 1916). 
 
 Letters, packages, etc., on GoTernment business sent free — Penalty enrelopes. 
 
 Sec. .5. [Aot of March S, 1877 (19 Stat., 335).] That it shall be 
 lawful to transmit through the in)ail free of postage any letters, 
 packages, or other matters relating exclusively to the business of the 
 Government of the United States : Provided, That every such letter 
 or package, to entitle it to pass free, shall bear over the words 
 " Official business " an endorsement showing also the name of the 
 Department, and, if from a bureau or office, the names of the Depart- 
 ment, and bureau or office, as the case may be, whence transmitted. 
 And if any person shall make use of any such official envelope to 
 avoid the payment of postage on his private letter, package, or other 
 m'atter in the mail, the person so offending shall be deemed guilty of 
 a misdemeanor, and subject to a fine of three hundred dollars, to be 
 prosecuted in any court of competent jurisdiction. 
 
 Sec. 6. That for the purpose of carrying this act into effect, it shall 
 be the duty of each of the Executive Departments of the United 
 States, to provide for itself and its subordinate officers the necessary 
 envelopes; and in addition to the endorsement designating the De- 
 partment in which they are to be used, the penalty for the unlawful 
 use of these envelopes shall be stated thereon. 
 
 15 Op. Atty. Gen., 262 ; 16 Id., 455 ; 17 Id., 255, 264. 
 
 As to the Philippines, 24 Id., 534. 
 
 Section 29 of the act of March 3, 1879 (20 Stat., 355), amended by the 
 act of July 5, 1884 (23 Stat., 156), extends the provisions of the above 
 act to all officers of the United States Government, not including Jlem- 
 bers of Congress, except to pension agents or other officers who receive 
 a fixed allowance for their service, including expenses for postage. In- 
 cludes United States Commissioners. (17 Op. Atty. Gen., 183, 631.) 
 
 Abuse of official frank. (Circular letter, Nov. 25, 1895; 41 Int Rev, 
 Rec, 489.) 
 
 Unlawful use of penalty envelopes. (Circular No. 344 ; 36 Int. Rev. 
 Rec, 149; Circular No. 599; T. D. 319.) 
 
 The right to use penalty envelopes. (T. D. 265; T. D. 833.) 
 
 Fraudulent use of official envelopes. (Sec. 227, act of March 4, 1909, 
 35 Stat, 1134.) 
 
 Franking official mail matter. (T. D. 1844.) 
 
 Penalty envelopes can not be used by rectifiers to transmit reports. 
 (T. D. 2221.) 
 
 ^w. 2. {Act of March 3, 1883 {m Stat., 563).] * * * And it 
 shall be the duty of the respective Departments to inclose to Senators, 
 Representatives, and Delegates in Congress, in all official communi- 
 
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692 APPENDIX. 
 
 cations requiring answers, or to be forwarded to others penalty- 
 envelopes addressed as far as practicable, for forwarding or answer- 
 ing such official correspondence. 
 
 Inclosing envelopes with return addresses. (Act of July 5, 1884, 23 
 Stat. 158.) 
 
 Government to have priority In transmission of tele^ams. 
 
 Sec. 5266. Telegrams between the several Departments of the 
 Government and their officers and agents, in their transmission over 
 the lines of any telegraph company to which has been given the right 
 of way, timber, or station lands from the public domain shall have 
 priority over all other business, at such rates as the Postmaster- 
 General shall annually fix. And no part of any appropriation for 
 the several Departments of the Government shall be paid to any com- 
 pany which neglects or refuses to transmit such telegrams in accord- 
 ance with the provisions of this section. 
 
 Official telegraphing. (Dept. Clr. No. 19, Aug. 21, 1913.) 
 Government rates for telegraphing. (Regulations No. 2, revised, p. 
 126.) 
 
 Telegrams of a personal character addressed to Office of the Commis- 
 sioner of Internal Revenue must be prepaid. Where a response to such 
 dispatches is i required payment therefor must be provided for by the 
 person in interest. (T. D. 19221 ; T. D. 444.) 
 
 In addressing official telegraphic messages, it is necessary to use only 
 the words "Commissioner Internal Revenue, Washington, D. C," the 
 name of the Commissioner or of a deputy commissioner being superfluous. 
 (T. D. 444; Cir. No. 613.) 
 Regulations concerning official telegrams. (T. D. 1879.) 
 Mimeograph letter 985, January 13, 1914, use of night telegrams and 
 the use of only the surname and official title of the sender. 
 
 Disposition of useless papers. 
 
 The act to authorize and provide for the disposition of useless papers in the 
 executive departments, approved February 16, 1889 (25 Stat., 672 ; 35 Int. 
 Rev. Rec, 62 ; 1 Supp. R. S., 644), provides that whenever there shall be in any 
 one of the executive departments an accumulation of papers, which are not 
 needed or useful in the transaction of the current business, and have no per- 
 manent value or historical interest, it shall be the duty of the head of the 
 department to submit to Congress a report of that fact, accompanied by a con- 
 cise statement of the condition and character of such papers. 
 
 Alter destruction has been authorized by Congress, it is the duty of the head 
 of the department to sell such papers as waste paper, after due publication, to 
 pay the proceeds into the Treasury, and make report to Congress. 
 
 This act was amended by the sundry civil appropriation act of March 2, 
 1895 (28 Stat., 933), "so as to include in its provisions any accumulation of 
 files of papers of a like character therein described now or hereafter in the 
 various pubUc buildings under the control of the several executive departments 
 of the Government." 
 
 Chapter 5. 
 OFFICERS, CLERKS, AND EMPLOYEES. 
 
 Honorably discharged soldiers or sail- 
 ors disabled in the service preferred 
 for appointment. 
 
 Preference given to soldiers and sol- 
 diers' widows in reducing force. 
 
 Removals and reductions. 
 
 Efficiency ratings. 
 
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 Employees to be paid from special ap- 
 propriations only. 
 
 Transfers and details. 
 
 Lump-sum appropriations. 
 
 Holidays. 
 
 Double salaries, compensation for ex- 
 tra services, perquisites, etc. 
 
APPENDIX, 
 
 693 
 
 Expenses of clerks, officers, etc., sent 
 away as witnesses. 
 
 No mileagie beyond traveling expenses 
 allowed. 
 
 Certain business forbidden to clerks 
 in the Treasury Department. 
 
 Penalty for officers and clerks receiv- 
 ing compensation in matters before 
 the department. 
 
 Officers Interested In claims ; penalty, 
 l^ersons formerly in the departments 
 
 not to prosecute claims in them 
 
 within two years. 
 Restrictions on payment for service.s. 
 Presents to superior officers prohibited. 
 Political contributions, immunity from 
 
 official proscription. 
 
 President authorized to prescribe regnlatlons. 
 
 Sec. 1753. The President is authorized to prescribe such regula- 
 tions for the admission of persons into the civil service of the United 
 States as may best promote the efficiency thereof, and ascertain the 
 fitness of each candidate in respect to age, health, character, knowl- 
 edge, and ability for the branch of service into which he seeks to 
 enter; and for this purpose he may employ suitable persons to con- 
 duct such inquiries, and may prescribe their duties, and establish 
 regulations for the conduct of persons who may receive appoint- 
 ments in the civil service. 
 
 In section 7 of the civil-service act It Is provided that nothing con- 
 tained In the act shall be construed to take from the President any 
 authority not inconsistent with the same conferred by section 1753. 
 
 Preference of persons disabled In military or nayal service. 
 
 Sec. 1754. Persons honorably_ discharged from the military or 
 naval service by reason of disability resulting from wounds or sick- 
 ness incurred in the line of duty, shall be preferred for appointments 
 to civil offices, provided they are found to possess the business 
 capacity necessary for the proper discharge of the duties of such 
 offices. 
 
 Not repealed by the civil-service act. Section 7, act January 16, 1883 
 (22 Stat, 403). 
 
 17 Op. Atty. Gen., 194 ; 27 Op. Atty. Gen., 490, July 28, 1909 ; Kelm v. 
 V. S., 117 U. S., 290, affirming 33 Ot. 01s., 174. 
 
 Executive order, preference of veterans. (Int. Rev. Cir. No. 644; 
 T. D. 681.) 
 
 The matter of capability and personal fitness is a matter of judgment 
 for the appointing power. (19 Op. Atty. Gen., 318.) 
 
 Transfer of dntlei and preference ot soldiers' and sailors' widows. 
 
 Sec. 3. [Act of August 15, 1876 {19 Stat., W9).] That whenever, 
 in the judgment of the head of any department, the duties assigned to 
 a clerk of one class can be as well performed by a clerk of a lower 
 class or by a female clerk, it shall be lawful for him to diminish the 
 number of clerks of the higher grade and increase the number of the 
 clerks of the lower grade within the limit of the total appropriation 
 for such clerical service: Provided, That in making any reduction 
 of force in any of the executive departments, the head of such de- 
 partment shall retain those persons who may be equally qualified 
 who have been honorably discharged from the military or naval 
 service of the United States, and the widows and orphans of deceased 
 soldiers and sailors. 
 
 Wheelock v. United States (46 Ot. 01s., 1). 
 
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694 APPENDIX. 
 
 BemoTalfl and reductions. 
 
 Sec, 6. [Act of August £^, 1912 {S7 Stat., SS5).'\ That no person 
 in the classified civil service of the United States shall be removed 
 therefrom except for such cause as will promote the efficiency of said 
 service and for reasons given in writing, and the person whose re- 
 moval is sought shall have notice of the same and of any charges 
 preferred against him, ahd be furnished with a copy thereof, and also 
 be allowed a reasonable time for personally answering the same in 
 writing; and affidavits in support thereof; but no examination of 
 witnesses nor any trial or hearing shall be required except in the 
 discretion of the officer making the removal ; and copies of charges, 
 notice of hearing, answer, reasons for removal, and of the order of the 
 removal shall be made a part of the records of the proper department 
 or office, as shall also the reasons for reduction in rank or compen- 
 sation; and copies of the same shall b,e furnished to the person af- 
 fected upon request, and the Civil Service Commission also shall, 
 upon request, be furnished copies of the same ; * * * The right 
 of persons employed in the civil service of the United States, either 
 individually or collectively, to petition Congress, or any Member 
 thereof, or to furnish information to either House of Congress, or to 
 any committee or member thereof, shall not be denied or interfered 
 with. 
 
 Civil service rules in regard to removals in the classified service. 
 (Executive order Dept. Cir. No. 34, August 5, 1914.) 
 
 Efilclency ratlngi. 
 
 Sec. 4. [Act of August £3, 1912 {37 Stat., ^13) .] The Civil Service 
 Commission shall, subject to the approval of the President, establish 
 a system of efficiency ratings for the classified service in the several 
 executive departments in the District of Columbia based upon records 
 kept in each department and independent establishment with such 
 frequency as to make them as nearly as possible records of fact. Such 
 system shall provide a minimimi rating of efficiency which must be 
 attained by an employee before he may be promoted ; it shall also pro- 
 vide a rating below which no employee may fall without being de- 
 moted ; it shall further provide for a rating below which no employee 
 may fall without being dismissed for inefficiency. All promotions, 
 demotions, or dismissals shall be governed by provisions of the civil- 
 service rules. Copies of all records of efficiency shall be furnished by 
 the departments and independent establishments to the Civil Service 
 Commission for record in accordance with the provisions of this sec- 
 tion: Provided, That in the event of reductions being made in the 
 force in any oi the executive departments no honorably discharged 
 soldier or sailor whose record in said department is rated good shall 
 be discharged or dropped or reduced in rank or salary. 
 
 Any person knowingly violating the provisions of this section shall 
 be summarily removed from office, and may also upon conviction 
 thereof be punished by a fine of not more than one thousand dollars 
 or by imprisonment for not more than one year. 
 
 Act of February 28, 1916 (39 Stat, 15), in part provides: "That here- 
 after the Division of Efficiency of the Civil Service Commission shall be 
 an independent establishment and shall be known as thp Bureau of 
 Efficiency: * * * And provided further. That the duties relating to 
 efficiency ratings imposed upon the Civil^^rvice Commission by section 
 
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APPENDIX. 695 
 
 4 of the legislative, executive, and judicial appropriation act approved 
 August 23, 1912, and the duty of investigating the administrative needs 
 of the service relating to personnel in the several executive departments 
 and independent establishments, imposed on the Civil Service Commis- 
 sion by the legislative, executive, and judicial appropriation act approved 
 March 4, 1913, are transferred to the Bureau of Efficiency." 
 
 EmployecB to be paid from speclllc appropriations only — CItII officers, clerks, etc., elsewhere 
 employed not to be detailed for duty in the District of Columbia. 
 
 Sec. 4. [Act of August 6, 1882 {22 Stat., 265).] That no civil 
 officer, clerk, draughtsman, copyist, naessenger, assistant messenger, 
 mechanic, watchman, laborer, or other employee shall after the first 
 day of October next be employed in any of the executive depart- 
 ments, or subordinate bureaus or offices thereof at the seat of gov- 
 ernment, except only at such rates and in such numbers, respectively, 
 as may 'be specifically appropriated for by Congress for such clerical 
 and other personal services for each fiscal year; and no civil officer, 
 clerk, draughtsman, copyist, messenger, assistant messenger, me- 
 chanic, watchman, laborer or other employee shall hereafter be em- 
 ployed at the seat of government in any executive department or 
 subordinate bureau or office thereof, or be paid from any appropria- 
 tion made for contingent expenses, or for any specific or general 
 purpose, unless such employment is authorized and payment therefor 
 specifically provided in the law granting the appropriation, and 
 then only for services actually rendered in connection with and 
 for the purposes of the appropriation from which payment is made, 
 and at the rate of compensation usual and proper for such services, 
 and after the first day of October next, section one hundred and 
 seventy-two of the Revised Statvites, and all other laws and parts 
 of laws, inconsistent with the provisions of this act, and all laws 
 and parts of laws authorizing the employment of officers, clerks, 
 draughtsmen, copyists, messengers, assistant messengers, mechanics, 
 watchmen, laborers or other employees at a different rate of pay or 
 in excess of the numbers authorized by appropriations made by Con- 
 gress, be, and they are hereby, repealed ; and thereafter all details of 
 civil officers, clerks, or other subordinate employees from places out- 
 side of the District of Columbia for duty within the District of 
 Columbia, except temporary details for duty connected with their 
 respective offices, be, and are hereby, prohibited; and thereafter all 
 moneys accruing from lapsed salaries or from unused appropriations 
 for salaries, shall be covered into the Treasury : Provided, That the 
 sums herein specifically appropriated for clerical or other force here- 
 tofore paid for out of general or specific appropriations may be used 
 by the several heads of departments to pay such force tmtii the said 
 several heads of departments shall have adjusted the said force in 
 accordance with the provisions of this act ; and such adjustment shall 
 be effected before October first, eighteen hundred and eighty-two. 
 And in making such adjustment the employees herein provided for 
 shall, as far as may be consistent with the interests of the service, be 
 apportioned among the several States and Territories according to 
 population : Provided further, That any person performing duty in 
 any capacity as officer, clerk, or otherwise in any department at the 
 date of the passage of this act, who has heretofore been paid from 
 any appropriation made for contingent expenses or for any con- 
 
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, 696 APPENDIX. 
 
 tingent or general purpose, and whose office or place is specifically 
 provided for herein, under the direction of the head of that depart- 
 ment may be continued in such office, clerkship, or employment 
 without a new appointment thereto, but shall be charged to the 
 quotas of the several States and Territories from which they are 
 respectively appointed and nothing herein shall be construed to 
 repeal or modify section one hundred and sixty-six of the Eevised 
 Statutes of the United States. 
 
 It is provided In tlie same act (22 Stat., 230) that nothing in this sec- 
 tion shall be construed to prevent the Commissioner of Internal Revenue 
 from detailing one revenue agent for duty in his office. 
 
 Section 166, R. S., amended by section 3, act of May 28, 1896 (29 Stat., 
 179), allowing temporary detail of clerks. 
 
 Clerks can not be detailed to examine collectors' offices. (Collins's case, 
 3 Lawrence Dec, 241 ; 29 Int. Rev. Rec, 43. ) 
 
 When Congress appropriates a sum " in laill compensation " of the 
 salary of a public officer, the incumbent can not recover an additional 
 sum in the Court of Claims, notwithstanding a prior statute fixes the 
 salary at a larger amount than the sum so appropriated. (United States 
 V. Fisher, 109 U. S., 143.) 
 
 Sec 5. [Act of August 22, 1913 {37 Stat., iU)-] That any person 
 : violating section four of the legislative, executive, and judicial appro- 
 priation Act approved August fifth, eighteen hundred and eighty-two 
 (Statutes at Large, volume twenty-two, page two hundred and fifty- 
 five), shall be summarily removed from office, and may also upon con- 
 viction thereof be punished by a fine of not more than one thousand 
 dollars or by imprisonment for not more than one year. 
 
 TransfeTS and detaUi. 
 
 Sec. 5. [Act of June 22, 1906 {34. Stat., 389, W).] It shall not be 
 lawful hereafter for any clerk or other employee in the classified 
 service in any of the Executive Departments to be transferred from 
 one Department to another Department until such clerk or other em- 
 ployee shall have served for a term of three years in the Department 
 from which he desires to be transferred. 
 
 27 Op. Atty. Gen., 421. 
 
 Section 3, act of August 23, 1912 (37 Stat., 413), prohibits the transfer 
 of any person from a position having a specific salary provided by statute 
 to any position with greater compensation which has been created under 
 a lump sum appropriation. (19 Compt. Dec, 184.) Section 4, act of 
 March 4, 1913 (37 Stat., 790), provides to the same effect. 
 
 The urgent deficiency appropriati(jn act, approved October 6, 1917 (40 
 Stat., 383), contains the following provision: 
 
 " That section five of the act of .Tune twenty-second, nineteen hundred 
 and six, prohibiting the transfer of employees from one executive depart- 
 ment to anotlier, shall apply with equal force and effect to the transfer 
 of employees from executive departments to independent establishments 
 and vice versa and to the transfer of employees from one independent 
 establishment to another : Provided, That the United States Shipping 
 Boiird Emergency Fleet Corporation shall be considered a Government 
 establishment for the pui-poses of this section." 
 
 Sec. 6. [Act of June 22, 1906 {34 Stat., 389, W).] Hereafter it 
 shall be unlawful to detail civil officers, clerks, or other subordinate 
 employees who are authorized or employed under or paid from ap- 
 propriations made for the military or naval establishments, or any 
 
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APPENDIX. 697 
 
 other branch of the public service outside of the District of Columbia, 
 except those oflBcers and employees whose details are now specially 
 provided by law, for duty in any bureau, oiEce, or other division of 
 any Executive Department in the District of Columbia, except tem- 
 porary details for duty connected with their respective offices. 
 
 The provisions of this act with regard to transfer of clerks and em- 
 ployees are not applicable to the Philippine Commission or to the Isth- 
 mian Canal Commission. (26 Op. Atty. Gen., 209.) 
 
 Details of employees. (Dept. Cir. No. 7, January 10, 1913.) 
 
 Sec. 5. [Act of July S, 1918 (40 Stat., 8U).'\ That in expending 
 appropriations made in this Act persons in the classified service at 
 Washington, District of Columbia, shall not be detailed for service 
 outside of the District of Columbia except for or in connection with 
 work pertaining directly to the service at the seat of government of 
 the department or other Government establishment from which the 
 detail is made : Provided, That nothing in this section shall be deemed 
 to apply to the investigation of any matter or the preparation, prose- 
 cution, or defense of any suit by the Department of Justice. 
 
 Similar provision in act of March 3, 1917 (39 Stat., 1070). 
 
 Sec. 6. [Act of October 6, 1917 [W Stat., S4S).] That section five 
 of the act of June twenty-second, nineteen hundred and six, prohibit- 
 ing the transfer of employees from one executive department to 
 another, shall apply with equal force and effect to the transfer of em- 
 ployees from executive departments to independent establishments 
 and vice versa and to the transfer of employees from one independent 
 establishment to another : Provided, That the United States Shipping 
 Board Emergency Fleet Corporation shall be considered a Govern- 
 ment establishment for the purposes of this section. 
 
 Section 5, act of June 22, 1906, page 696. 
 
 Sec. 7. [Act of October 6, 1917 {^0 Stat., 345) .] That no civil em- 
 ployee in any of the executive departments or other Government 
 establishments, or who has been employed therein within the period 
 of one year next preceding his proposed employment in any other 
 executive department or other Government establishment, shall be 
 employed hereafter and paid from a lump-sum appropriation in 
 any other executive department or other Government establishment 
 at an increased rate of compensation. And no civil employee in any 
 of the executive departments or other Government establishments 
 or who has been employed therein within the period of one year next 
 preceding his proposed employment in any other executive depart- 
 ment or other Government establishment and who may be em- 
 ployed in another executive department or other Government estab- 
 lishment shall be granted an increase in compensation within the 
 period of one year following such reemployment: Provided, That 
 the United States Shipping Board Emergency Fleet Corporation 
 shall be considered a Government establishment for the purposes of 
 this section: Provided fv/rther, That this section shall not be con- 
 strued to repeal section five of the act of Jure twenty-second, nine- 
 teen hundred and six, which prohibits the transfer of employees from 
 one department to another. 
 
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698 APPENDIX. 
 
 Lmnp-snm approprlatlonB. 
 
 Sec. 4. [Act of March 4., 1913 {37 Stat., 739) .J That section seven 
 of the general deficiency appropriation act approved August twenty- 
 sixth, nineteen hundred and twelve, is amended to read as follows : 
 
 " Sec. 7. That no part of any money contained herein or hereafter 
 appropriated in lump sum shall be available for the payment of per- 
 sonal services at a rate of compensation in excess of that paid for the 
 same or similar services during the preceding fiscal year; nor shall 
 any person employed at a specific salary be hereafter transferred and 
 hereafter paid from a lump-sum appropriation a rate of compensa- 
 tion greater than such specific salary, and the heads of departments 
 shall cause this provision to be enforced : Provided, That this section 
 shall not apply to mechanics, artisans, their helpers and assistants, 
 laborers, or any other employees whose duties are of similar char- 
 acter and required in carrying on the various manufacturing or 
 constructing operations of the Government." 
 
 Sec. 12. [Act of August 1, 19U {38 Stat., 680).] That it shall not 
 be lawful hereafter to pay to any person, employed in the service of 
 the United States under any general or lump-sum appropriation, 
 any sum additional to the regular compensation received for or 
 attached to any employment held prior to an appointment or desig- 
 nation as acting for or instead of an occupant of any other ofiice or 
 employment. This provision shall not be construed as prohibiting 
 regular and permanent appointments by promotion from lower to 
 higher grades of employment. 
 
 Transfers from specific salaries to lump-sum appropriation roll at 
 increased compensation. (19 Comp. Dec, 789.) 
 
 The Secretary of the Treasury is authorized to use for, and in con- 
 nection with, the enforcement of the laws relating to the Treasury De- 
 partment and the several branches of the public service under its con- 
 trol, not exceeding at any one time four persons paid from the appro- 
 priation for the collection of customs, four persons paid from the appro- 
 priation for salaries and expenses of internal-revenue agents or from 
 the appropriation for the foregoing purpose, and four persons paid from 
 the appropriation for suppressing counterfeiting and other crimes, but 
 not exceeding six persons so detailed shall be employed at any one time 
 hereunder : Provided, That nothing herein contained shall be construed 
 to deprive the Secretary of the Treasury from making any detail now 
 otherwise authorized by existing law. Extract from sundry civil appro- 
 priation act for 1919. Act of July 1, 1918 (40 Stat., 642.) 
 
 No salary for office not authorized. 
 
 Sec. 1760. No money shall be paid from the Treasury to any person 
 acting or assuming to act as an officer, civil, military, or naval, as 
 salary in any office when the office is not authorized by some pre- 
 viously existing law, unless such office is subsequently sanctioned by 
 law. 
 
 Accepting TOlnntary Berrtce prohibited. 
 
 [Act of May 1,1884 {23 Stat., 17).] * * * And hereafter no 
 Department or officer of the United States shall accept voluntary 
 service for the Government, or employ personal service in excess of 
 that authorized by law, except in cases of sudden emergency involv- 
 ing the loss of human life or the destruction of property. 
 
 Reproduced in section 3679, amended, p. 687. 
 voluntary servic^.^^^|0^g^^A|jg,Gen^^g.) 
 
APPENDIX. 699 
 
 Public holidays. 
 
 Sec. 993. [Revised Statutes relating to District of Oolumhia.'} The 
 following days, namely : The first day of January, commonly called 
 New Year's Day; the fourth day of July; the twenty -fifth day of 
 December, commonly called Christmas Day ; and any day appointed 
 or recommended by the President of the United States as a day of 
 public fast or thanksgiving, shall be holidays within the District. 
 
 The 22d of February made a hoUday. (Act of January 31, 1879; 
 20 Stat., 277.) 
 
 Inauguration Day made a holiday. (Act of June 18, 1888; 25 Stat., 
 185.) 
 
 " Decoration Day " made a holiday. (Act of August 1, 1888 ; 2.5 
 Stat., 353.) 
 
 The first Monday in September (labor's holiday) made a holiday. 
 (Act of June 28, 1894; 28 Stat, 96.) 
 
 Legal holidays falling on Sunday the next day shall be a holiday. 
 (Act of December 20, 1881; 22 Stat., 1.) 
 
 As to ministerial acts performed on Sunday and holidays, see In re 
 Worthington (23 Int. Rev. Rec, 233). 
 
 Holidays ; hours of labor in executive departments. (25 Op. Atty. 
 Gen., 40.) 
 
 The joint resolution of January 6, 1885 (23 Stat., 516) provides that 
 per diem employees of the Government on duty at Washington, or else- 
 where in the United States, shall be allowed the following holidays, to 
 wit : The first day of January, the twenty-second day of February, the 
 fourth day of July, the twenty-fifth day of December, and such days as 
 may be designated by the President as days for national thanksgiving, 
 and shall receive the same pay as on other days. 
 
 The joint resolution of February 23, 1887 (24 Stat., 644) provides that 
 per diem employees of the Government, on duty at Washington or else- 
 where in the United States, shall be allowed " Memorial " or " Decora- 
 tion Day," and the fourth of July, as holidays, and shall receive the same 
 pay as on other days. (11 Comp. Dec, 393.) 
 
 Pay of per diem employees Labor Day. (Dept. Cir. No. 49, August 31, 
 1910; 22 Comp. Dec., 404.) 
 
 Donble Balarles — Compensation for extra serrlcci — Extra allOTrances — ^Ferqnlsltes, etc. — 
 
 Frohlbltlon. 
 
 Sec. 1763. No person who holds an office, the salary or annual com- 
 pensation attached to which amounts to the sum of two thousand five 
 hundred dollars, shall receive compensation for discharging the 
 duties of any other office, unless expressly authorized by law. 
 
 Talbot's case (10 Ct. Cls., 426). 
 
 The statutes do not prohibit a person from drawing the salaries of two 
 distinct offices which he legitimately holds. (5 Op. Atty. Gen., 765 ; 6 Id., 
 80- 9 Id.. 507; 10 Id., 446; 15 Id., 306; 16 Id., 7; Collins v. United States, 
 15 Ct. CIS., 22.) 
 
 In construing statutes restraining the Executive from giving dual or 
 extra compensation, courts have aimed to carry out the legislative intent 
 by giving them sufficient flexibility not to injure the public service and 
 sufficient rigidity to prevent Executive abuse. (Landram v. United 
 States, 16 Ct. Cls., 74; 27 Int. Rev. Rec, 80.) 
 
 No person who holds an office the salary or annual compensation at- 
 tached to which amounts to the sum of $2,500 shall be appointed to or 
 hold any other office to which compensation is attached unless heretofore 
 or hereafter specially authorized thereto by law, but this shall not apply 
 to retired officers of the Army or Navy. (See sec. 2, act of July 31, 
 1894; 28 Stat, 205; 16 Comp. Dec, 823.) 
 
 Holding State offices by officers or employees. (18 Op. Atty. Gen., 3.) 
 
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700 APPENDIX. 
 
 When combined amount of salaries exceeds the sum of $2,000 per an- 
 num. Section 6, act of May 10, 1916. (39 Stat., 120;) 
 
 Compensation may be paid officers holding two compatible positions. 
 (Op. Solic. of Treasury, Feb. 1, 1887.) 
 
 Sec. 1764. No allowance or compensation shall be made to any 
 officer or clerk, by reason of the discharge of duties which belong to 
 any other officer or clerk in the same or any other Department ; and 
 no allowance or compensation shall be made for any extra services 
 whatever, which any officer or clerk may be required to perform, 
 unless expressly authorized by law. 
 
 Section 170 prohibits payment to department clerks for extra services 
 unless authorized by law. 
 
 An agreement by the Secretary of the Interior to pay a clerk In his 
 department for services rendered to the Government by labors abroad, 
 the clerk still holding his place and drawing his pay as clerk in the In- 
 terior, held void. (Stansbury v. United States, 8 Wall., 33.) 
 
 See also disbursing clerk's case (5 Lawrence Dec, 401) ; Wade's case 
 (27 Int. Rev. Rec, 16) ; Herndon's claim (26 Id., 314). 
 
 Sec. 1765. No officer in any branch of the public service, or any 
 other person whose salary, pay, or emoluments are fixed by law or 
 regulations, shall receive any additional pay, extra allowance, or 
 compensation, in any form whatever, for the disbursement of public 
 money, or for any other service or duty whatever, unless the same is 
 authorized by law, and the appropriation therefor explicitly states 
 that it is for such additional pay, extra allowance, or compensation. 
 
 The construction which has been given to these statutes (sees. 1763, 
 1764, 1765) is that the intent and efEect of them is to forbid officers hold- 
 ing one office to receive compensation for the discharge of duties belong- 
 ing to another, or additional pay, extra allowance, or compensation for 
 such other services or duties where they hold the commission of but a 
 single office, and by virtue of that office, or in addition to the duties of 
 that office, have assigned to them the duties of another office. Accord- 
 ing to the decisions, however, if an officer holds two distinct commissions, 
 and thus two distinct offices, he may receive the salary for each. Con- 
 verse V. United States, leading case on questions of additional compen- 
 sation (21 Howard, 463; 15 Op. Atty. Gen., 308, 608). United States v. 
 Brindle (110 U. S., 689). Hartson v. United States (21 Ct. Cls., 451; 
 32 Int. Rev. Rec, 238). In this case the Supreme Court went further 
 than it had gone in any previous decision and held that where a person 
 holds two separate employments, though not technically offices, he is 
 entitled to the compensation of both. Saunders v. United States (120 
 U. S., 126; 33 Int. Rev. Rec, 63) ; Collins case (15 Ct. Cls., 22) ; Whlt- 
 aker v. United States (27 Ct. Cls., 524; 43 Int. Rev. Rec, 193). 
 
 Deputy marshal not an " officer," and can be paid for services in assist- 
 ing the collector in destroying Illicit stills. (Brovra's case, 28 Int. Rev. 
 Rec, 19.) 
 
 A deputy marshal lias been held to be an officer of the United States. 
 (29 Op. Atty. Gen., 597.) 
 
 Deputy collector not an " officer " within the meaning of section 1765. 
 (Landram v. United States, 16 Ct. Cls., 74; 27 Int. Rev. Rec, 80.) 
 
 Payment of double compensation to a person holding two appointments 
 at the same time. (10 Comp. Dec, 726; see also 11 Id., 392.) 
 
 Sec. 3. [Act of March 20, 1874 {18 Stat, 109; 1 Supp. R. S., W)-l 
 That no civil officer of the Government shall hereafter receive any 
 compensation or perquisites, directly or indirectly, from the Treasury 
 or property of the United States beyond his salary or compensation 
 allowed by law : 
 
 Provided, That this shall not be construed to prevent the employ- 
 ment and payment by the Department of Justice of district attorneys 
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APPENDIX. 701 
 
 as now allowed by law for the performance of services not covered by 
 their salaries or fees. 
 
 This act relates only to " civil officers." It does not extend to the clerk 
 of a supervisor of internal revenue. (Hedrick v. United States, 16 Ct 
 CIS., 88.) 
 
 Double salarleg restricted. 
 
 Sec. &. [Act of Maj/ 10, 1916 {39 Stat, IBO).] That unless other- 
 wise specially authorized by law no money appropriated by this or 
 any other act shall be available for payment to any person receiving 
 more than one salary when the combined amount of said salaries ex- 
 ceeds the sum of $2,000 per annum, but this shall not apply to retired 
 officers of the Army, Navy, or Marine Corps, whenever they may be 
 appointed or elected to public office or whenever the President shall 
 appoint them to office by and with the advice and consent of the 
 Senate or to officers and enlisted men of the Organized Militia and 
 Naval Militia in the several States, Territories, and the District of 
 Columbia. 
 
 Payment of expenses of clerks, otBcers, etc, lent iiray as witnesses. 
 
 Sec. 850. When any clerk or other officer of the United States is 
 sent away from his place of business as a witness for the Government, 
 his necessary expenses, stated in items and sworn to, in going, return- 
 ing, and attendance on the court, shall be audited and paid; but no 
 mileage, or other compensation in addition to his salary, shall in any 
 case be allowed. 
 
 Expenses can be taxed in the bill of costs for the travel or attendance 
 of Government clerks. (United States v. Sanborn, 135 U. S., 271; 36 Int. 
 Rev. Rec, 142.) 
 
 Deputy collectors are included under the words " other officer of the 
 United States " according to the ruling of the department. 
 
 Expenses of deputy coUectors incurred in attendance upon preliminary 
 examination before United States Commissioners In obedience to sub- 
 poenas. (T. D., 1640, XVI Comp. Dec., 838.) 
 
 The word " officer " in this section is to receive a liberal construction. 
 (17 Comp. Dec, 584.) 
 
 Expenses of collectors and deputy collectors which attending a Federal 
 court as witness in response to subpoenas incurred, after July 1, 1908, pay- 
 able from appropriation for " Fees of witnesses." (20 Comp. Dec, 195 ; 
 T. D. 1363.) 
 
 Instructions, Department of .Justice, .Tune 1, 1916, to United States 
 marshals, attorneys, etc., page 107. 
 
 Expenses incurred by departmental clerk in obeying subpoena. (XVI 
 Comp. Dec, 672.) 
 
 No mileage lieyond traTellng expenses allowed. 
 [Extract from act of June 16, 1874 (18 Stat., 72).] 
 
 * * * Provided, That only actual traveling expenses shall be 
 allowed to any person holding employment or appointment under the 
 United States, and all allowances for mileages and transportation in 
 excess of the amount actually paid are hereby declared illegal ; and no 
 credit shall be allowed to any of the disbursing officers of the United 
 States for payment or allowances in violation of this pro- 
 vision. * * * 
 
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702 APPENDIX, 
 
 Certain IbusIneBs and emolnments forbidden to clerks In the Tremnry Department. 
 
 Sec. 244. Every clerk employed in the Treasury Department who 
 carries on any trade or business in the funds or debts of the United 
 States, or of any State, or in any kind of public property, or who 
 takes or applies to his own use any emolument or gain for negotiating 
 or transacting any business in the Department, shall be deemed 
 guilty of a misdemeanor, and punished by a fine of five hundred dol- 
 lars and removal from office. 
 
 Sections 1788, 1789 ; section 103, Criminal Code, act of March 4, 1909, 
 page 671. 
 
 OfflcerB and clerki recelrlng compensation In matters before the department!; penaltf. 
 
 [§1782.] Sec. 113. [Act of March 4, 1909, Crvmmal Code {35 
 Stat., 1109).] Whoever, being elected or appointed a Senator, Mem- 
 ber of or Delegate to Congress, or a Resident Commissioner, shall, 
 after his election or appointment and either before or after he has 
 qualified, and during lus continuance in office, or being head of a 
 department, or other officer or clerk in the employ of the United 
 States, shall, directly or indirectly, receive, or agree to receive, any 
 compensation whatever for any services rendered or to be rendered 
 to any person, either by himself or another, in relation to any pro- 
 ceeding, contract, claim, controversy, charge, accusation, arrest, or 
 other matter or thing in which the United States is a party or 
 directly or indirectly mterested, before any department, court-mar- 
 tial, bureau, officer, or any civil, military, or naval commission what- 
 ever, shall be fined not more than ten thousand dollars and impris- 
 oned not more than two years; and shall, moreover, thereafter be 
 incapable of holding any office of honor, trust, or profit under the 
 Government of the United States. 
 
 Contracts with the Government by executive officers. (14 Op. Atty. 
 Gen., 482; 24 Op. Atty Gen., 557.) 
 
 Prohibition against officers taking money or other valuable considera- 
 tion for procuring places or contracts. Sec. 1781 superseded by sec. 
 112, act of March 4, 1909 (Criminal Code). 
 
 Otiicers and employees of Internal Revenue Bureau prohibited from 
 acting as agents for surety companies. (T. D. 21025.) 
 
 Offlcers protecutlng claims against the United States; penalty. 
 
 [§5498.1 Sec. 109. [Act of March 1^, 1909, Criminal Code {35 Stat, 
 1107).'] Whoever, being an officer of the United States, or a per- 
 son holding any place of trust or profit, or discharging any official 
 function under, or in connection with, any Executive Department of 
 the Government of the United States, or under the Senate or House 
 of Eepresentatives of the United States, shall act as an agent or at- 
 torney for prosecuting any claim against the United States, or in any 
 manner, or by any means, otherwise than in discharge of his proper 
 official duties, shall aid or assist in the prosecution or support of any 
 such claim, or receive any gratuity, or any share of or interest in any 
 claim from any claimant against the United States, with intent to 
 aid or assist, or in consideration of having aided or assisted, in the 
 prosecution of such claim, shall be fined not more than five thousand 
 dollars, or imprisoned not more than one year, or both. 
 
 No general provision in statutes forbidding executive offlcers to con- 
 tract directly with Government as principals in matters separate from 
 performance of oflT£j;^,Y^^|,y /l^^,^gci#@iy' Gen., 482.) 
 
APPENDIX. 703 
 
 Member of Congress Is an officer within the meaning of section 32 of 
 the Criminal Code. (Lamar v. United States, 241 V. S., 103.) 
 
 A Member of Congress is not an officer. (17 Op. Atty. Gen., 420; 
 United States v. Burton, 131 Fed., 552; Burton v. United States, 196 
 U. S., 283; see 202 U. S., 344.) 
 
 Personi formerly In the Departments not to prosecute claims In them nlthln two years. 
 
 Sec. 190. It shall not be lawful for any person appointed after the 
 first day of June, one thousand eight hundred and seventy-two, as 
 an officer, clerk, or employe in any of the Departments, to act as 
 counsel, attorney, or agent for prosecuting any claim against the 
 United States which was pending in either of said Departments 
 while he was such oificer, clerk, or employe, nor in any manner, nor 
 by any means, to aid in the prosecution of any such claim, within 
 two years next after he shall have ceased to be such officer, clerk, 
 or employe. 
 
 See 20 Op. Atty. Gen., 696. 
 
 Bestrlction on payment for tervlces ; oath to be regnired. 
 
 Sec. 1790. No officer or clerk whose duty it is to make payments 
 on account of the salary or wages of anj' officer or person employed 
 in connection with the customs or the internal-revenue service, shall 
 make any payment to any officer or person so employed on account 
 of services rendered, or of salary, unless such officer or person so to 
 be paid has made and subscribed an oath that, during the period for 
 which he is to receive pay, neither he, nor any member of his 
 family, has received, either personally or by the intervention of an- 
 other party, any money or compensation of any description what- 
 ever, nor any promises for the same, either directly or indirectly, 
 for services rendered or to be rendered, or acts performed or to be 
 performed, in connection with the customs or internal revenue; or 
 has purchased, for like services or acts, from any importer, if affiant 
 is connected with the customs, or manufacturer, if affiant is con- 
 nected with the internal-revenue service, consignee, agent, or custom- 
 house broker, or other person whomsoever, any merchandise, at less 
 than regular retail market prices therefor. 
 
 Prohibition of contributions, presents, etc., to official soporlori. 
 
 Sec. 1784. No officer, clerk, or employe in the United States Gov- 
 ernment employ shall at any time solicit contributions from other 
 officers, clerks, or employes in the Government service for a gift or 
 present to those in a superior official position ; nor shall any such of- 
 ficials or clerical superiors receive any gift or present offered or pre- 
 sented to them as a contribution from persons in Government em- 
 ploy receiving a less salary than themselves ; nor shall any officer or 
 clerk make any donation as a gift or present to any official superior. 
 Every person who violates this section shall be summarily discharged 
 from the Government employ. 
 
 Collections from officers and employees in the field service for personal 
 gifts prohibited. (T. D. 2862.) 
 
 Penalty for officers and employees glrlng to or receiving from other officers money, etc., for 
 
 political purposes. 
 
 Sec. 6. [Act of August IS, 1876 ( 19 Stat., 169) .J That all executive 
 officers or employees o^j^J^^^^^'h^SfM^ appointed by the Pres- 
 
704 
 
 APPENDIX, 
 
 ident, with the advice and consent of the Senate, are prohibited from 
 requesting, giving to, or receiving from, any other officer or employee 
 of the Government any money or property or other thing of value 
 for political purposes; and any such officer or employee who shall 
 offend against the provisions of this section shall be at once dis- 
 charged from the service of the United States; and he shall also be 
 deemed guilty of a misdemeanor, and on conviction thereof shall be 
 fined in a sum not exceeding five hundred dollars. 
 
 This act not unconstitutional. (United States v. Curtis, 28 Int. Rev. 
 Eec, 273; Ex parte Curtis, 106 U. S., 371; 29 Int. Rev. Rec, 18.) 
 
 Members of Congress not included. (17 Op. Atty. Gen., 419.) 
 
 The civil-.'iervice act (act of January 16, 1883; 22 Stat., 403) makes 
 political assessments of Federal officers, clerks, and employees a misde- 
 meanor. The following are the provisions of the lavi' on the subject : 
 
 Sec. 2, paragraph 2, clause 5. That no person in the public service is 
 for that reason under any obligation to contribute to any political fund, 
 or to render any political service, and that he will not be removed or 
 Otherwise prejudiced for refusing to do so. 
 
 Sixth. That no person in said service has any right to use his official 
 authority or influence to coerce the political action of any person or body. 
 
 Sections 118, 119, 120, 121, 122, of the act of March 4, 1909 (35 Stat., 
 1088), Criminal Code, reproducing sections 11, 12, 13, 14 and 15 of the 
 civil-service act. 
 
 Official interference in political movements. ( Order of President Cleve- 
 land, Dept. Cir. No. 117, September 1, 1886.) 
 
 Employees in the competitive classified service shall take no active 
 part in political management or in political campaigns. (Dept. Circular 
 No. 21, March 31, 1908.) 
 
 Warning against political assessments and partisan activity of office 
 holders. (Dept. Cir. No. 60, October 25, 1910, T. D. 31010; Dept. Cir. No. 
 '64, September 29, 1916.) 
 
 Order of Commissioner Yerkes, dated December 9, 1905, addressed to 
 collectors of internal revenue : 
 
 "So far as the classified service is concerned, employees must abso- 
 lutely refrain from political activity." 
 
 Political contributions. (24 Op. Atty. Gen., 133.) 
 
 Chapter 6. 
 legacies and distributive shares of personal property. 
 
 [Sections 29 and 30, act of June 13, 1898 (30 Stat., 464).] 
 
 Lien on testator's property. 
 
 Notice by executor. 
 
 Payment. 
 
 SclK-'dules, etc. 
 
 Receipts. 
 
 Assessments, etc. 
 
 Legal proceedings to recover tax. 
 
 Title, etc. 
 
 Penalties. 
 
 Refunds. 
 
 Contingent beneficial interests not 
 vested July 1, 1902. 
 
 Extension of time for repayment of 
 taxes erroneously collected. 
 
 Acceptance of Liberty bonds in pay- 
 ment of tax. 
 
 of the act of 
 
 The tax on legacies (sec. 29) was repealed by section 
 April 12, 1902 (82 Stat., 96), taking efCect July 1, 1902. 
 
 No legacy tax accrued where the testator died prior to the act of June 
 13, 1898. (Penn. Co. for Insurance on Lives and Granting Annuities v. 
 McClain, 105 Fed., 367; T. D. 343.) 
 
 Legacv tax constitutional. (Knowlton et al. t'. Moore, collector, 178 
 U. S., 4i; T. D. 129. 
 
 (Vanderbilt v. Eidman, 196 U. S., 480; T. D. 868; Decision in United 
 States circuit court, southern district of N. Y., 121 Fed., 590; T. D.. 618.) 
 
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APPENDIX. 705 
 
 SaTing clanse. 
 
 Sec. 8. [Act of April 12, 1902 {32 Stat., 96).] That all taxes or 
 duties imposed by section twenty -nine of the Act of June thirteenth, 
 eighteen hundred and ninety-eight, and amendments thereof, prior to 
 the taking effect of this Act, shall be subject, as to lien, charge, collec- 
 tion, and otherwise, to the provisions of section thirty of said Act of 
 June thirteenth, eighteen hundred and ninety-eight, and amendments 
 thereof, which are hereby continued in force, as follows : 
 
 " Sec. 30. That the tax or duty aforesaid shall be due and payable 
 in one year after the death of the testator and shall be a lien and 
 charge upon the property of every person who may die as aforesaid 
 for twenty years, or until the same shall, within that period, be fully 
 paid to and discharged by the United .States; and every executor, 
 administrator, or trustee having in charge or trust any legacy or dis- 
 tributive share, as aforesaid, shall give notice thereof, in writing, to 
 the coUectoi- or deputy collector of the district where the deceased 
 grantor or bargainer last resided within thirty days after he shall 
 have taken charge of such trust, and every executor, administrator, 
 or trustee, before payment and distribution to the legatees, or any 
 parties entitled to beneficial interest therein, shall pay to the col- 
 lector or deputy collector of the district of which the deceased person 
 was a resident, or in which the property was located in case of non- 
 residents, the amoimt of the duty or tax assessed upon such legacy 
 or distributive share, and shall also make and render to the said col- 
 lector or deputy collector a schedule, list, or statement, in dupli- 
 cate, of the amount of such legacy or distributive share, together 
 with the amount of duty which has accrued, or shall accrue, 
 thereon, verified by his oath or affirmation, to be administered 
 and certified thereon by some magistrate or officer having law- 
 ful power to administer such oaths, in such form and manner 
 as may be prescribed by the Commissioner of Internal Revenue, 
 which schedule, list, or statement shall contain the names of each 
 and every person entitled to any beneficial interest therein, together 
 with the clear value of such interest, the duplicate of which 
 schedule, list, or statement shall be by him immediately delivered, 
 and the tax thereon paid to such collector ; and upon such payment 
 and delivery of such schedule, list, or statement said collector or 
 deputy collector shall grant to such person paying such duty or tax a 
 receipt or receipts for the same in duplicate, which shall be prepared 
 as hereinafter provided. Such receipt or receipts, duly signed and 
 delivered by such collector or deputy collector, shall be siifficient 
 evidence to entitle such executor, administrator, or trustee to be cred- 
 ited and allowed such payment by every tribunal which, by the laws 
 of any State or Territory, is, or may be, empowered to decide upon 
 and settle the accounts of executors and administrators. And in case 
 such executor, administrator, or trustee shall refuse or neglect to pay 
 the aforesaid duty or tax to the collector or deputy collector, as afore- 
 said, within the time hereinbefore provided, or shall neglect or refuse 
 to deliver to said collector or deputy collector the duplicate of the 
 schedule, list, or statement of such legacies, property, or personal 
 estate, under oath, as aforesaid, or shall neglect or refuse to deliver 
 the schedule, list, or statement of such legacies, property, or personal 
 
 140184°— 20 45 
 
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706 APPENDIX. 
 
 estate, under oath, as aforesaid, or shall deliver to said collector or 
 deputy collector a false schedule or statement of such legacies, prop- 
 erty, or personal estate, or give the names and relationship of the 
 persons entitled to beneficial interests therein untruly, or shall not 
 truly and correctly set forth and state therein the clear value of such 
 beneficial interest, or where no administration upon such property or 
 personal estate shall have been granted or allowed under existing 
 laws, the collector or deputy collector shall make out such lists and 
 valuation as in other cases of neglect or refusal, and shall assess the 
 duty thereon ; and the collector shall commence appropriate proceed- 
 ings before any court of the United States, in the name of the United 
 States, against such person or persons as may have the actual or con- 
 structive custody or possession of such property or personal estate, 
 or any part thereof, and shall subject such property or personal 
 estate, or any portion of the same, to be sold upon the judgment or 
 decree of such court, and from the proceeds of such sale the amount 
 of such tax or duty, together with all costs and expenses of every 
 description to be allowed by such court, shall be first paid, and the 
 ■balance, if any, deposited according to the order of such court, to be 
 paid under its direction to such person or persons as shall establish 
 title to the same. The deed or deeds, or any proper conveyance of 
 such property or personal estate, or any portion thereof, so sold under 
 such judgment or decree, executed by the officer lawfully charged 
 with carrying the same into effect, shall vest in the purchaser thereof 
 all the title of the delinquent to the property or personal estate sold 
 under and by virtue of such judgment or decree, and shall release 
 every other portion of such property or personal estate from the lien 
 or charge thereon created by this Act. And every person or persons 
 who shall have in his possession, charge, or custody any record, file, 
 or paper containing, or supposed to contain, any information con- 
 cerning such property or personal estate, as aforesaid, passing from 
 any person who may die, as aforesaid, shall exhibit the same at the 
 request of the collector or deputy collector of the district, and to 
 any law officer of the United States, in the performance of his duty 
 under this Act, his deputy or agent, who may desire to examine the 
 same. And if any such person, having in his possession, charge, or 
 custody any such records, files, or papers, shall refuse or neglect to 
 exhibit the same on request, as aforesaid, he shall forfeit and pay 
 the sum of five hundred dollars: Provided, That in all le^al con- 
 troversies where such deed or title shall be the subject of judicial 
 investigation, the recital in said deed shall be prima facie evidence 
 of its truth, and that the requirements of the law had been complied 
 with by the officers of the Government : And provided fwrther, That 
 in case of willful neglect, refusal, or false statement by such execu- 
 tor, administrator, or trustee, as aforesaid, he shall be liable to a 
 penalty of not exceeding one thousand dollars, to be recovered with 
 costs of suit. Any tax paid under the provisions of sections twenty- 
 nine and thirty shall be deducted from the particular legacy or dis- 
 tributive share on account of which the same is charged." 
 
 Effect of the repealing net. — The war revenue act of June 13, 1898, 
 as amended, provided for a tax on legacies to become due and payable 
 in one year after the death of the testator, and to be a lien and charge 
 on his property for 20 years. 
 
 Digitized by IVIicrosoft® 
 
APPENDIX. 707 
 
 Such provisions were repealed by the act of April 12, 1902, with a 
 saving clause as to all taxes imposed thereby prior to July 1, 1902, when 
 the repeal took effect. 
 
 The act of June 27, 1902, prohibited the further assessment or im- 
 position of any tax under said act " upon or in respect of any contin- 
 gent beneficial interest which shall not become absolutely vested in 
 possession or enjoyment " prior to July 1, 1902, and required the re- 
 funding of taxes previously collected on any such interests. Held, that 
 where a testator who died in December, 1901, bequeathed a share of his 
 residuary estate in trust, the Income to be paid to a son during his life, 
 the life estate of the son in the income of the trust property became 
 absolutely vested in enjoyment at once on the death of the testator, 
 and subject to the tax ; that the tax was " imposed " by the statute 
 itself at the time of such vesting without reference to the time when it 
 became due and payable or to any act of assessment by the internal- 
 revenue officers, which was merely an administrative detail necessary 
 to fix the amount but not affecting the time when the tax was imposed 
 or became a lien. (Westhus et al. v. Union Trust Co., 164 Fed., 795; 168 
 Fed., 617 ; petition for rehearing denied. Contra, Lynch v. Union Trust 
 Co., 164 Fed., 161.) 
 
 The fact that the testator dies within one year prior to the taking 
 effect of the repealing act of April 12, 1902, does not relieve from tax- 
 ation legacies otherwise taxable under sections 29 and 30 of the act of 
 June 13, 1898, as amended by the act of March 2, 1901, being saved by 
 the saving clause of the repealing act. (Hertz v. Woodman, 218 U. S., 
 205; T. D. 1636, overruling decision in Eidman v. Tilghman, 136 Fed., 
 141.) 
 
 In Disston v. McClain, collector (1906), it was held that an annuity 
 passing as a legacy prior to repeal of the act, payable in quarterly in- 
 stallments out of the income of personal property during the life of the 
 beneficiary was taxable, only as to so much of the income as was vested 
 in the actual possession of the legatee prior to the 1st day of July, 1902, 
 when the law was repealed. (147 Fed., 114, reversing 143 Fed., 191; T. 
 D. 976.) A petition was filed in the United States Supreme Court for 
 a writ of certiorari in this case, but the court refused to issue the writ. 
 (207 U. S., 587.) 
 
 Receipt of Liberty bonds and Victory notes in payment of tax. (T. 
 Ds. 2905, 2904, 2898, 2878, 2802.) 
 
 Legacy tax is not a debt of decedent's estate, and an action at law 
 can not be maintained to recover same against executor or administrator 
 in his representative capacity. Remedy is by action to enforce payment 
 from property subject to tax against executor or other person having ac- 
 tual or constructive possession thereof. (United States v. FItts, 197 
 Fed., 1107.) 
 
 The act of June 13, 1898, was copied from the act of 1864; Congress 
 had in mind doubtless that the act of 1864 had received judicial and 
 practical construction which would be binding or at least valuable in 
 the interpretation of the act of 1898. (Id.) 
 
 Tax on legacies imposed by act of June 13, 1898, Is an excise tax due 
 to be paid by the executor. If he falls to pay or parts with possession 
 before payment a proceeding may be brought against him or any person 
 in possession to have tax made a lien on the property. Legatee not per- 
 sonally liable in assumpsit if property not suflBcient to satisfy lien. 
 (United States v. Priest, 210 Fed., 332.) 
 
 Certain Liberty bonds exempt from estate or inheritance taxes. (T. D. 
 2836.) 
 
 Legacies vested in enjoyment, though not in possession, at time 1898 
 act was repealed by act April 12, 1902, were taxable. (Ward r. Sage, 
 185 Fed., 7.) 
 
 Kotwithstanding executors were not bound to pay legacies until more' 
 than a year after testator's death, the estate bequeathed vested abso- 
 lutely in testator's children at date of his death prior to repeal of act 
 of June 13, 1898, by act of April 12, 1902. (Beer v. Moffatt, 209 Fed., 
 779.) 
 
 Life estate vests at death of testator and is to be ascertained as of that 
 date upon expectancy of life tenants according to mortality tables. Death 
 
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^ 708 APPENDIX. 
 
 of life tenant before expiration of year allowed for payment of tax does 
 not affect the rule. (United States v. Farr's Bx'r., 196 Fed., 997.) 
 
 Tax does not apply to personal property of aliens or persons domiciled 
 abroad. (Eidman v. Martinez, 184 U. S., 578; Moore v. Ruckgaber, 184 
 U. S., 593.) 
 
 Congress has power to tax transmission of property by legacy to muni- 
 cipal corporation. (Snyder v. Bettman, 190 U. S., 249.) 
 
 Tax upon legacies is valid even if such legacies are composed of Fed- 
 eral bonds. (Murdock v. Ward, 178 U. S., 139; Sherman v. United States, 
 178 U. S., 151.) 
 
 Liability for the tax attaches the moment the right of succession by 
 death passes to the legatee or next of kin, and it is payable when the 
 legatee becomes entitled to possession or right of possession. (Hertz v. 
 Woodman, 218 U. S., 205 ; T. D. 1636. Vanderbilt v. Kidman, 196 U. S., 
 480; T. D. 868; Tile Guarantee & Trust Go. v. Ward, 164 Fed., 459; 184 
 Fed., 447.) 
 
 Personal property includes leasehold interests in land. (Baldwin v. 
 Eidman, 206 Fed., 428.) 
 
 Distinction between income and annuity. (Peck v. Kinney, 143 Fed., 
 76.) 
 
 Legacy to pay income while wife of H. not vested and not taxable. 
 (Muenter v. Bliss, 208 Fed., 140.) 
 
 Befnnd of tax on lepaetes and bequests for uses of a rellglong, charitable, or edncatlonal charac- 
 ter; refnnd of tax on contingent beneflclal Interests, which had not become Tested Jnlr 1, 
 1902 — No tax to be assessed on contingent beneficial interests not vested July 1, 1902. 
 
 AN ACT To provide for refunding taxes paid upon legacies and bequests for 
 uses of a religious, charitable, or educational character, for the encourage- 
 ment of art, and so forth, under the act of June thirteenth, eighteen hun- 
 dred and ninety-eight, and for other purposes, approved June 27, 1902. (32 
 Stat., 406.) 
 
 Sec. 1. That the Secretary of the Treasury, under appropriate 
 rules and regulations to be prescribed by him, be, and he is hereby, 
 authorized and directed to pay, out of any money in the Treasury 
 not othervcise appropriated, to the corporations, associations, socie- 
 ties, or individuals as trustees or executors, such sums of money as 
 have been paid by them as taxes upon bequests or legacies for uses 
 of a religious, literary, charitable, or educational character, or for 
 the encouragement of art, or legacies or bequests to societies for 
 the prevention of cruelty to children, under the provisions of section 
 twenty-nine of the Act entitled " An Act to provide ways and means 
 to meet war expenditures, and for other purposes," approved June 
 thirteenth, eighteen hundred and ninety-eight. 
 
 Seo. 2. * * * 
 
 Sec. 3. That in all cases where an executor, administrator, or 
 trustee shall have paid, or shall hereafter pay, any tax upon any 
 legacy or distributive share of personal property under the pro- 
 visions of the act approved June thirteenth, eighteen hundred and 
 ninety-eight, entitled "An Act to provide ways and means to meet 
 war expenditures, and for other purposes," and amendments thereof, 
 the Seceretary of the Treasury be, and he is hereby, authorized and 
 directed to refund, out of any money in the Treasury not otherwise 
 appropriated, upon proper application being made to the Commis- 
 sioner of Internal Revenue, under such rules and regulations as 
 may be prescribed, so much of said tax as may have been collected on 
 contingent beneficial interests which shall not have become vested 
 prior to July first, nineteen hundred and two. And no tax shall 
 hereafter be assessed or imposed under said Act approved June 
 thirteenth, eighteen hundred and ninety-eight, upon or in respect 
 Digitized by Microsoft® 
 
APPENDIX. 709 
 
 of any contingent beneficial interest which shall not become abso- 
 lutely vested m possession or enjoyment prior to said July first, 
 nineteen hundred and two. 
 
 41 >|e « lie H< lit H< 
 
 Circular No. 627, relative to refunding legacy taxes as provided in 
 the first paragraph; July 3, 1902. (T. D. 543.) 
 
 The act of June 27, 1902, relative to the refund of tax collected on 
 contingent beneficial interests not vested prior to July 1, fixes no time 
 within which the claim for refund must be filed with the collector. 
 
 If the two years' limit is applicable under section 3228, R. S., it must 
 be two years from the passage of the act and not two years from payment 
 of the tax. (Thacher v. United States, United States Circuit Court, 
 District of Massachusetts, 149 Fed., 902; 26 Op. Atty. Gen., 194.) 
 
 Attorney General's opinion as to vested interests, August 1, 1902. 
 (T. D. 570, modifying Circular No. 630, T. D. 552 ; 24 Op. Atty. Gen., 98.) 
 
 The act of June 27, 1902, made the 1898 tax inapplicable to an estate 
 not probated before July 1, 1902. (Hunnewell v. Gill, 257 Fed., 857.) 
 
 Conditions precedent to suit to recover tax illegally collected, under 
 sections 3226 and 3228, not applicable as to inheritance taxes imposed 
 by act of June 13, 1898, if taxpayer has complied with section 3 of 
 act of June 13, 1898, and section 2 of act of July 27, 1912, and presented 
 claim for refund; but provision for repayment under latter act not 
 satisfied where claim has been filed by attorney for trustee or for 
 administrator de bonis non of decedent, the original executrix having 
 paid the tax without protest on behalf of the cestui que trust. (Rand 
 V. United States, 249 U. S., 503; T. D. 2886.) 
 
 Right to possession or enjoyment of an estate for life or years was 
 properly taxed as a legal unit in its entirety. The present right or in- 
 terest in such estates is in no sense " contingent," and taxes thereon are 
 not refundable under this act. (United States v. Fidelity Trust Co., 
 222 U. S., 158; T. D. 1741.) 
 
 No tax was assessable on legacies which had not become absolutely 
 vested in possession or enjoyment prior to July 1, 1902 ; where testator 
 died May 24, 1902, and under State law payment of legacies could not be 
 demanded until the expiration of a year, legacy taxes collected before 
 that time were collected on contingent interests not absolutely vested and 
 should be refunded. (McCoach v. Pratt, 236 U. S., 562; T. D. 2171.) 
 
 Where judgment to recover succession tax collected under act of June 
 13, 1898, was for only part of claim, this judgment not a bar to suit 
 against United States in Court of Claims to recover unpaid residue; 
 claim for refund filed in August, 1903, to recover such succession tax is suf- 
 ficient ; claim made September 7, 1916, for refund of taxes collected under 
 act of June 13, 1898, claim rejected October 3, 1916, and suit brought in 
 Court of Claims January 23, 1917, is not barred by six-year limitation 
 period allowed by section 1069, R. S. ( Sage v. United States, 250 U. S., 
 33; T. D. 2885.) 
 
 A legacy in trust where trustee is to pay net income to legatee fov 
 term of years creates a vested interest in the beneficiary in such income 
 for the term, which legacy, if it became vested before July 1, 1902, and 
 amounted to $10,000 is assessable under act of June 13, 1898, and amend- 
 ments thereof. (Muenter v. Union Trust Co., 195 Fed., 480.) 
 
 Where trust continued 11 years, during which period beneficiaries re- 
 ceived annual income and corpus did not vest prior to July 1, 1902, only 
 value of annual income is taxable, and act of June 27, 1902, is available 
 to trustee who paid tax on entire corpus. (Rosenfeld v. Scott, 232 
 Fed., 509.) 
 
 United States District Court has jurisdiction of suits against the 
 United States based upon act of July 27, 1912; this act not limited to 
 refund of legacy taxes assessed under section 29 of war-revenue act. 
 (United States v. Hvoslef, 237 U. S., 1; T. D. 2186.) 
 
 Where testator died in December, 1901, life estate became vested in 
 enjoyment at once on death of testator and subject to the tax. (Westhus 
 V. Union Trust Co., 164 Fed., 795.) 
 
 No legacy tax accrued under act of June 13, 1898, where the testator 
 died prior to that date. (Penn. Co. for Insurance on Lives and Granting 
 Annuities v. McClaicu XQ5 Fed., 367; T. D. 343.) 
 
 Digifizedby Microsoft® 
 
710 APPENDIX, 
 
 Legacy taxes paid on contingent interest, which did not become vested 
 prior to July 1, 1902, are required to be ref tinded by act of June 27, 1902, 
 irrespective of their legality or whether they were voluntarily paid or 
 not ; and a failure to present the claim within the time limited by such 
 section will not bar an action thereon. (Thacher v. United States, 149 
 Fed., 902; 26 Op. Atty. Gen., 194.) 
 
 The period of limitation in section 3228, R. S., does not apply to the re- 
 funding act of June 27, 1902 ; the act is not a part of the revenue system ; 
 no protest required. (United States v. Shipley, 197 Fed., 265.) 
 
 When beneficial interests become vested. (United States v. Jones, 236 
 U. S., 106; T. D. 2138. McCoach v. Pratt, 236 U. S., 562; T. D. 2171.) 
 
 [Act of July 27, 1912 (37 Stat.. 240).] 
 
 AN ACT Extending the time for the repayment of certain war-revenue taxes 
 
 erroneously collected. 
 
 Be it enacted, etc., That all claims for the refunding of any internal 
 tax alleged to have been erroneously or illegally assessed or collected 
 under the provisions of section twenty-nine of the act of Congress 
 approved June thirteenth, eighteen hundred and ninety-eight, known 
 as the war-revenue tax, or of any sums alleged to have been excessive, 
 or in any manner wrongfully collected under the provisions of said 
 act may be presented to the (Commissioner of Internal Revenue on or 
 before the first day of January, nineteen hundred and fourteen, and 
 not thereafter. 
 
 Sec. 2. That the Secretary of the Treasury is hereby authorized and 
 directed to pay, out of any moneys of the United States not otherwise 
 appropriated, to such claimants as have presented or shall hereafter 
 so present their claims, and shall establish such erroneous or illegal 
 assessment and collection, any sums paid by them or on their account 
 or in their interest to the United States under the provisions of the 
 act aforesaid. 
 
 Act July 27, 1912, restricts one claiming refund to suit against the 
 United States, and does not authorize one against an internal-revenue 
 collector under Rev. St., sections 3220, 3226-3228. (Hunnewell v. Gill, 
 257 Fed. 857.) 
 
 Conditions precedent to suit to recover tax illegally collected, under 
 sections 3226 and 3228, not applicable as to inheritance taxes imposed by 
 act June 13, 1898, if taxpayer has complied with section 3 of act of June 
 13, 1898, and section 2 of act of July 27, 1912, and presented claim for 
 refund ; but provision for repayment under latter act not satisfied where 
 claim has been filed by attorney for trustee or for administrator de bonis 
 non of decedent, the original executrix having paid the tax without pro- 
 test on behalf of the cestui que trust. (Rand v. United States, 249 
 U. S., 503; T. D. 2886.) 
 
 United States District Court has jurisdiction of suits against the 
 United States based upon act of July 27, 1912 ; this act not limited to 
 refund of legacy taxes assessed under section 29 of war-revenue act. 
 (United States v. Hvoslef, 237 U. S., 1 ; T. D. 2186.) 
 
 Right to refund of tax paid under section 29, act of June 13, 1898, 
 barred unless claim presented to Commissioner on or before January 1, 
 1914. (Coleman v. United States, 250 U. S., 30.) 
 
 Where claim filed and rejected prior to July 27, 1912, not necessary to 
 file new claim under this act on or before July 1, 1914, as basis of suit. 
 (Sage V. United States, 250 U. S., 33; T. D. 2885.) 
 
 Sec. 6. [Act of April A, 1918 {W Stat., 602, 506), amending act of 
 September U, 1917 {Ifi Stat.,_ 288).'] That any bonds of the United 
 States bearing interest at a higher rate than four per centum per an- 
 num (whether issued under section one of this Act or upon conversion 
 of bonds issued under this Act or under said Act approved April 
 Digitized by Microsoft® 
 
APPENDIX. 
 
 711 
 
 twenty- fourth, nineteen hundred and seventeen), which have been 
 owned by any person continuously for at least six months prior to the 
 date of his death, and which upon such date constitute part of his 
 estate, shall, under rules and regulations prescribed by the Secretary 
 of the Treasury, be receivable by the United States at par and accrued 
 interest in payment of any estate or inheritance taxes imposed by the 
 United States, under or by virtue of any present or future law upon 
 such estate or the inheritance thereof. 
 
 United States bonds bearing interest at a higher rate than 4 per cent to 
 be accepted at par and accrued interest in payment of estate tax. (T. D. 
 2705.) 
 
 Chapter 7. 
 
 SPECIAL EXCISE TAX ON CORPORATIONS.^ 
 
 tSec. 38, act of August 5, 1909 (36 Stat, 112).] 
 
 Rate of tax; organizations excepted. 
 
 Net income ; how determined. 
 
 Annual returns required from officers 
 of corporations ; computation of tax. 
 
 Procedure when returns are incor- 
 rect ; failure to make returns ; books 
 may be examined ; attendance of 
 witnesses compelled. 
 
 Assessment of tax ; addition to tax 
 for false returns ; payment of tax ; 
 penalty for failure to pay ; notice ; 
 limitation ; penalty ; interest. 
 
 Returns to be flled in office of Com- 
 missioner of Internal Revenue. 
 
 Government officer or employee di- 
 vulging information ; penalty. 
 
 Failure to make true returns; false 
 returns ; penalty ; revenue laws 
 made applicable for collection, etc., 
 of tax; jurisdiction United States 
 courts to compel testimony and pro- 
 duction of books, etc. 
 
 Appropriation for expenses of collect- 
 ing corporation tax. Returns open 
 to inspection by order of the Presi- 
 dent. 
 
 Additional employees authorized. 
 
 Refund or abatement of penalty taxes. 
 
 Corporations Bnbject to tax; rate of tax; organlzattom exempted. 
 
 Sec 38. That every corporation, joint stock company or associa- 
 tion, organized for profit and having a capital stock represented by 
 shares, and every insurance company, now or hereafter organized 
 under the laws of the United States or of any State or Territory 
 of the United States or under the Acts of Congress applicable to 
 Alaska or the District of Columbia, or now or hereafter organized 
 under the laws of any foreign country and engaged in business in 
 any State or Territory of the United States or in Alaska or in the 
 District of Columbia, shall be subject to pay annually a special ex- 
 cise tax with respect to the carrying on or doing business by such 
 corporation, joint stock company or association, or insurance com- 
 pany, equivalent to one per centum upon the entire net income over 
 and above five thousand dollars received by it from all sources dur- 
 ing such year, exclusive of amounts received by it as dividends upon 
 stock of other corporations, joint stock companies or associations, or 
 insurance companies, subject to the tax hereby imposed ; or if organ- 
 ized under the laws of any foreign country, upon the amount of net 
 income over and above five thousand dollars received by it from busi- 
 ness transacted and capital invested within the United States and 
 its Territories, Alaska, and the District of Columbia during such 
 year, exclusive of amounts so received by it as dividends upon stock 
 
 1 Repealed by act of Oct. 3, 1913 (p, 761). 
 
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712 APPENDIX. 
 
 of other corporations, joint stock companies or associations, or in- 
 surance companies, subject to the tax hereby imposed: Provided, 
 however, That nothing in this section contained shall apply to labor, 
 agricultural or horticultural organizations, or to fraternal bene- 
 ficiary societies, orders, or associations operating under the lodge sys- 
 tem, and providing for the payment of life, sick, accident, and other 
 benefits to the members of such societies, orders, or associations, and 
 dependents of such members, nor to domestic building and loan asso- 
 ciations, organized and operated exclusively for the mutual benefit 
 of their members, nor to any corporation or association organized 
 and operated exclusively for religious, charitable, or educational 
 purposes, no part of the net income of which inures to the benefit 
 of any private stockholder or individual. 
 
 Corporations engaged in business after approval of act are amenable 
 to the provisions of section 38, although having gone into liquidation 
 prior to December 31, 1909. (T. D., 1615.) 
 
 Foreign steamship companies liable. (28 Op. Atty. Gen., 211.) 
 
 Real estate trusts liable. (28 Op. Atty. Gen., 235.) 
 
 Limited partnerships under Pennsylvania statutes. If organized for 
 profit and having a capital stoct represented by shares, although " no 
 certificates of stock " are issued, are liable to the tax. (28 Op. Atty. 
 Gen., 189.) 
 
 Mutual savings banks under West Virginia statutes having no capital 
 stock not liable to tax. (28 Op. Atty. Gen., 189.) 
 
 A corporation vrhich evened an office building leased the property for 
 180 years and reorganized, practically going out of business, its sole 
 authority being to hold title and receive and distribute the rentals or 
 proceeds of sale. If the property should be sold, not liable to the tax. 
 (Zonne v. Minneapolis Syndicate, 220 TJ. S., 187; T. D. 1687.) 
 
 Certain real estate trusts in Massachusetts not liable. Congress in- 
 tended to embrace only such corporations and joint-stock associations as 
 are organized under some' statute, or derive from that source some 
 quality or benefit not existing at the common lave. (Eliot v. Freeman; 
 Maine Baptist Missionary Convention v. Ootting, 220 tJ. S., 178; T. 
 D. 1686.) 
 
 The act of 1909 must be construed as imposing an excise tax upon 
 the right to do business in corporate form, and the income from the 
 business, vs^hlch is the measure oi the tax upon the right, may be esti- 
 mated upon the assumption that the form is to be regarded as the 
 reality ; a debt released in favor of a corporation by its sole stockholder 
 should be treated as capital rather than income, though a debt so 
 released should be treated as adding to the corporate income. (United 
 States V. Oregon-Washmgton R. & Nav. Co., 251 Fed., 211.) 
 
 This law was adopted before ratification of sixteenth amendment to 
 Constitution and Imposed an excise tax on doing of business by cor- 
 porations; not in any sense a tax on property upon income merely as 
 such, nor upon the income arising from the conduct of business unless 
 it be carried on by the corporation. (United States v. Whitridge, 231 
 U. S., 144.) 
 
 Partnership associations organized under laws of Pennsylvania possess 
 every privilege and power essential to a corporation and are liable to 
 the tax imiwsed by this act. Mutual savings banks organized under 
 laws of West Virginia, while in a sense organized for profit, have not a 
 capital stock represented by shares, and are not subject to tax. (28 Op. 
 Atty. Gen., 189.) 
 
 Where profit is one of the substantial objects of company incorporated 
 to provide and oiperate a terminal for certain railroads, it is within the 
 statute. (Boston Terminal Co. v. Gill, 246 Fed., 664; T, D. 2671.) 
 
 A mutual protective association, collecting assessments from which to 
 pay death or injury benefits to members and carrying surplus Into reserve 
 fund for use in meeting extra losses in a later year is an " insurance 
 
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APPENDIX. 713 
 
 benefit societies" distingnished. (Commercial Travelers Life & Accident 
 Association v. Rodway, 235 Fed., 370; T. D. 1918.) 
 
 Old Colony Railroad Co., whose demised roads were operated by the 
 New York, New Haven & Hartford Railroad Co., as lessee, and not as 
 agent, held not a corporation "engaged in business" during the years 
 1909-1912, Inclusive, within the meaning of this act. (Old Colony Rail- 
 road Co. V. Gill, 257 Fed., 220.) 
 
 The corporation tax act of 1909 was a tax upon the doing of business 
 with the advantages which inhere in the peculiarities of corporate or- 
 ganization. (Gauley Mountain Coal Co. v. Hays, Collector, 230 Fed., 110.) 
 
 The true test to determine whether a corporation organized for a 
 business purpose is engaged in business within the meaning of the cor- 
 poration tax act is whether It is continuing the body and substance of 
 the business for which it was organized, or whether it has retired from 
 it and turned it over to another. (Traction Companies v. Collectors of 
 Int. Bev., 223 Fed., 984.) 
 
 A corporation to be subject to the tax must be organized for the 
 purpose of doing business and must be actually engaged in business. 
 (Emery, Bird, Thayer Realty Co. v. United States, 198 Fed., 242; 237 
 IJ. S. 28; T. D. 2188.) 
 
 Where a corporation Is doing the business for which it was organized, 
 the Income derived from such business is taxable under the act. (Rio 
 Grande Junction By. Co. v. United States, 51 Ct. Cls., 274.) 
 
 An oiJerating agreement by which a street railroad company surrenders 
 its own and leased lines to the possession of another company for opera- 
 tion for a term of 999 years, in consideration of annual rentals and the 
 payment of interest on its indebtedness and that of its lessors, does not 
 differ in legal effect from a lease, and the lessor is not subject to the excise 
 tax imposed by the corporation tax law. (MeCoach, Collector, v. Con- 
 tinental Passenger Railway Co., 233 Fed., 976.) 
 
 Tax imposed on corporations by act of 1909 is not a direct tax, but 
 an excise on the privilege of doing bnsiness in a corporate capacity. 
 (Anderson v. Morris & B. R. Co., 216 Fed., 83.) 
 
 That railroad corporation maintained its organization, held annual 
 meeting of stockholders, elected directors and oflScers, and appointed an 
 executive committee, would not be sufBeient to show that it was ." en- 
 gaged in business ;" issuance of bonds to its lessee for completion of 
 branch road would not amount to resumption of business; payment of 
 rent by lessee corporation not to lessor, but to its stockholders and bond- 
 holders, could not prevent the rent so paid being subject to taxation 
 under the act of 1909, if the act was otherwise applicable. (Anderson v. 
 Morris & E. E. R. Co., 216 Fed., 83.) 
 
 Railway corporation which had leased its railroad to another company 
 operating it exclusively, but which maintains its corporate existence and 
 collects and distributes to its stockholders the rental from the lessee 
 and also dividends from investments, is not " doing bnsiness " within 
 the meaning of the act. (MeCoach v. Minehill Railway Co., 228 U. S., 
 295.) 
 
 Corjioration tax is imposed njjon the doing of corporate business and 
 with respect to the carrying on thereof, and not upon the franchises or 
 property of the corporation irrespective of their use in business. (Id.) 
 
 Dissolved corporatiwis liable; assets subject to tax lien. (28 Op. 
 Atty. Gen., 241; T. D. 1615. United States v. General Inspection and 
 Loading Company, 192 Fed., 223; T. D. 1736; T. D. 1850.) 
 
 Building and loan associations exempt. (Pacific B. & L. Association v. 
 Hartson, 201 Fed., 1011; T. D. 1830.) 
 
 The legislative purpose was not to tax prt^erty as such or mere con- 
 version of property, but to tax the conduct of the business of corporations 
 organized for profit by a measure based upon the gainful returns from 
 their business operations and property from the time the act took effect. 
 The snggestion that the «itire proceeds of the conversion of capital assets 
 should be still treated as the same capital, changed only in form and con- 
 taining no element of income, altboirgb including an increment of value, 
 is Inconsistent with the general purpose of the act. " Income " Imports 
 something entirely distinct from principal or capital, either as a subject 
 of taxation or as a measure of the tax, conveying rather the idea of gain 
 
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714 APPENDIX. 
 
 or increase arising from corporate activities. (Doyle v. Mitchell Bros. 
 Co., 247 U. S., 179; T. D. 2723.) 
 
 The fact that plaintiff was a public-utilities corporation, which, under 
 the laws of the State, was not the owner of the property but merely in- 
 trusted with the use thereof, which it must devote to the public, does not 
 entitle it to more favorable treatment than other corporations, it being 
 a corporation organized for profit, having a capital stock represented by 
 shares, and the act making no exceptions in favor of public utilities. 
 (Union Hollywood Water Co. v. Carter, 238 Fed., 329 ; T. D. 2475.) 
 
 The tax imposed is not an income but an excise tax, imposed upon the 
 doing of business in a corporate capacity, and measured in amount by net 
 income as defined by section 38. (Houston Belt & Terminal Railway Co. 
 v. United States, 250 Fed., 1 ; T. D. 2710.) 
 
 The definition of the term " doing business " which has been judicially 
 approved is that which occupies the time, attention, and labor of men 
 for the purpose of a livelihood or profit. A fair test is that a corporation 
 which has reduced Its activities to the owning and holding of property 
 and the disposition of its avails and doing only the acts necessary to 
 continue that status is not " doing business," and one which is still 
 active and maintaining its organization for the purpose of continued 
 efEorts for profit and gain and such activities as are essential to those 
 purposes is regarded as " doing business." The corporation-tax act re- 
 quired no particular amount of business in order to bring a company 
 within its terms. Moneys received by the corporation in payment for iron 
 ore under the contracts made as so-called royalties amount to income. 
 (Von Baumbach v. Sargent Land Co., 242 U. S., 503 : T. D. 2436.) 
 
 Act held constitutional. (Flint v. Stone-Tracy Co., 220 U. S., 107; 
 T.D.1685.) 
 
 The tax imposed on corporations organized for profit and engaged in 
 business, equivalent to 1 per cent on the net income above $5,000, is valid 
 as an excise on the privilege of doing business in a corporate capacity. 
 Blalock, Collector, v. Georgia By. & Electric Co., 228 Fed., 296; 246 
 Fed., 387.) 
 
 The act of 1909 was not in any proper sense an income-tax law, but was 
 an excise upon the conduct of business in a corporate capacity measured 
 by reference to the income. (Anderson v. Forty-two Broadway Co., 289 
 U. S., 69; T. D. 2261.) 
 
 So-called dividends of mutual life insurance company doing business 
 on level premium plan, so far as used to reduce subsequent premiums, not 
 taxable as " income received " ; return should not include premium and 
 Interest items accrued and due, but not actually collected and received. 
 (Northwestern Mutual Life Insurance Co. v. Fink, 248 Fed., 568.) 
 
 Such company is not under necessity to return as gross income interest 
 accrued on policy loans. (Id.) 
 
 Act applies to mining companies, and proceeds of ore mined is income 
 within meaning of act ; while act is not an income-tax law, tax is measured 
 by amount of income. (Stratton's Independence v. Howbert, 231 U. S., 
 399; T. D. 1913.) 
 
 The terms " doing business within the State " and " doing or transacting 
 business in the United States" do not include the doing of a single act 
 or making of a single contract, but do include a continued series of acts 
 by an agent or agents continuously within the State or the United States, 
 as the case may be. (Laurentide Co. (Ltd.) v. Durey, 231 Fed., 223; 
 T. D. 2346.) 
 
 Lessor corporation which afiirmatively exercises its power to acquire 
 additional franchise rights is carrying on business. (Public Service Rail- 
 way Co. V. Herold, 227 Fed., 490; reversed, 229 Fed., 902, 906; T. D. 
 2147.) 
 
 Lessor corporation exercising corporate powers by adding to its prop- 
 erties, disposing of its investments, making others in cooperation with or 
 at request of lessee with view of enhancing value of leased estate, is out- 
 side of ruling in McCoach v. Minehill R. B. Co., and is doing business. 
 (Public Service Railway Co. v. MofEett, 227 Fed., 494; T. D. 2146.) 
 
 Lessor corporation extending business for benefit of lessee can not say 
 that it is not doing business because it performs the acts done for benefit 
 of lesee as well as of itself. (Id.) 
 
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APPENDIX. 715 
 
 Railroad corporation, which has leased its property for term of years, 
 but continues in possession of corporate powers and Issues bonds to pay 
 for improvements, etc., in accordance with terms of lease, engaged in 
 business and is liable to tax. (Dayton & Western Traction Co. v. Gllligan, 
 T. D. 2000 ; reversed, Traction Companies v. Collectors, 223 Fed., 984 ; New 
 York Central & Hudson River R. R. Co. r. Gill, T. D. 1999; reversed, 
 219 Fed., 184.) 
 
 Reducing capital stock is not engaging in business so as to require pay- 
 ment of tax, nor is bringing of suit by lessee in name of lessor to establish 
 right to cross tracks of another ; but joining by lessor in a deed for sale 
 of property and taking of conveyance does constitute transaction of busi- 
 ness. (Dayton & Western Traction Co. v. Gllligan, T. D. 2000.) 
 
 New Jersey corporation doing business in Cuba held liable to tax. 
 (T. D. 1863.) 
 
 Evidence required in support of claims for abatement or refund of taxes 
 claimed under decision In case of McCoach v. Minehill R. R. Co. (T. D. 
 1859.) 
 
 Fraternal beneficiary societies, orders, or associations, not operating 
 under lodge systems, considered to be such insurance companies as are 
 required to make return of annual net income. (T. D. 1738. ) 
 
 Corporations engaged in agricultural, horticultural, or similar pursuits, 
 for profit, not exempt from requirements of act. (T. D. 1737.) 
 
 Corporation which has been dissolved is subject to payment of tax ; dis- 
 solution on February 14, 1910, did not relieve corporation from tax for 
 1909; officers of corporation had authority to make return after dissolu- 
 tion. (T. D. 1736.) 
 
 Company not organized for profit, its method of doing business being 
 purely of mutual character, is not liable. (T. D. 1713.) 
 
 All corporations not specifically enumerated as exempt are presumed to 
 be subject to tax and required to make returns. (T. D. 1806.) 
 
 Realty corporation simply collecting and distributing rent from a 
 specified parcel of land is not doing business. (Emery, Bird, Thayer 
 Realty Co. v. United States, 198 Fed., 242, affirmed by Supreme Court, 
 237 U. S., 28 ; Zonne v. Minneapolis Syndicate, 220 tJ. S., 187, followed ; 
 Cedar St. Realty Co. v. Park Realty Co., 220 U. S., 107, distinguished.) 
 
 Corporation organized to own the stock of a mining company, with no 
 assets except such stock, a small amount in bank, and office furniture, 
 etc., and doing nothing other than to receive dividends from the opera- 
 ting company and distribute them as such among its own stockholders, 
 was not " doing business " within the act and was not subject to the tax. 
 (United States v. Nipissing Mines Co., 206 Fed., 431.) 
 
 Where amounts which should have been charged to the depletion of 
 corporate assets were carried in a surplus account, taxes can not be 
 based on such amounts, for that would allow the basing of taxes on mere 
 bookkeeping. (Forty Fort Goal Co. v. Kirkendall, 233 Fed., 704, 705.) 
 
 Where a street railway company, under authority of State law, leased 
 at a graded annual rental its system of street railways, which it owned, 
 operated, and controlled, to another company for a long term, and there- 
 after engaged in no other business than to maintain and preserve its 
 corporate existence, receiving the rent, and distributing the income 
 among its stockholders, it was no longer " doing business " as a traction 
 company, and was therefore not subject to tax. (Wilkes-Barre & W. 
 V. Traction Co. v. Davis, 214 Fed., 511.) 
 
 A street railway corporation which leased its lines and property to 
 another corporation in 1897 and had not since operated them was not 
 In 1913 "engaged in business" so as to be subject to tax. (West End 
 Street Ry. Co. v. Malley, 246 Fed., 625.) 
 
 A gas company, which has leased its plant and all other physical prop- 
 erty for a term of years, the business for which it was incorporated 
 being carried on by its lessee, is not " carrying on or doing business " 
 within the meaning of this act and subject to the tax thereby imposed, 
 although it retains its franchise and organization, and receives and dis- 
 burses its income, and under the terms of the lease bears the expense of 
 alterations, improvements, and additions to its plant made during the 
 term, and also during the term has applied for and obtained from the 
 legislature amendments to its special charter. (Waterbury Gaslight 
 
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716 APPENDIX. 
 
 Foreign corporation owning timber lands in a State and operating 
 factory, whlcli sold such timber lands to another company, as well as its 
 plant, payments to be made in installments, the foreign company to re- 
 tain title until paid in full, although retaining an attorney in the State 
 to look after its interests and an agent for service of process, as required 
 by State statute, was not thereafter " doing business " in the State. 
 (Bryant & May, Ltd., v. Scott, 226 Fed., 875.) 
 
 Borrowing money from or loaning money to nonmembers does not de- 
 prive domestic building and loan associations of exemption as organized 
 and operated for the mutual benefit of members. (Central Building, 
 Loan and Savings Co. v. Bowland, 216 Fed., 526.) 
 
 A pipe-line company organized by, and doing business only for, two 
 other pipe-line corporations, was not merely a convenient agent of these 
 corporations, but was doing business for profit. (Associated Pipe Line 
 Co. V. United States, 258 Fed., 800.) 
 
 Where a corporation, with general business powers, amended its 
 articles so as to limit its activities to mere ownership and rental of cer- 
 tain property occupied and used by its stockholders as department store, 
 and applied the entire rent, first to payment of interest on mortgage 
 liens, and then to payment of dividends to stockholders, it was not 
 " doing business." ( Abrast Realty Co. v. Maxwell, 206 Fed., 333 ; Max- 
 well V. Abrast Realty Co., 218 Fed., 457.) 
 
 An iron company, which, with the approval of its stockholders, leased 
 to another company for 999 years all its property and assigned to the 
 lessee all its cash, contracts, and entire business, in consideration of a 
 rental equal to 4 per cent on its outstanding stock, payable directly to its 
 stockholders, together with an additional amount to cover the cost of 
 maintaining its organization, after which it had no other income than 
 the rent, was not "doing business." (Cambria Steel Co. v. McCoach, 
 225 Fed., 278.) 
 
 Corporation which has leased its electric-power plant and all its 
 property and franchises, except the franchise to be a corporation, is 
 "doing business." (Public Service Electric Co. v. Herold, 227 Fed., 491; 
 reversed by 229 Fed., 902, 906.) 
 
 Corporation which leases its business as it exists, but reserves right 
 to extend business for benefit of lessee, if lessee requests it, is thereafter 
 "doing business," where it exerts such reserve power so as to acquire 
 additional property, though doing so for benefit of lessee as well as itself. 
 (Public Service Railway Co. v. Moffett, 227 Fed., 494; reversed. Public 
 Service Railway Co. v. Herold, 229 Fed., 902, 906.) 
 
 Corporation leasing its property, franchise rights and privileges, les- 
 see agreeing to make extensions to lessor lines of railway, etc., lessor 
 performing no acts save to receive rentals, was not " doing business." 
 (Public Service Co. v. Herold, 227 Fed., 500; Public Service Railway Co. 
 V. Herold, 229 Fed., 902, 906.) 
 
 Corporation chartered to manufacture, buy, sell, lease, and let power 
 plants and generating stations for manufacture and distribution of elec- 
 tric current is not, because part of authorized business is leasing of prop- 
 erty, " doing business," where by lease it divested itself of all its prop- 
 erty and has since merely collected and disbursed rents for the demised 
 property. (Public Service Co. v. Herold, 229 Fed., 902.) 
 
 Gas company which leased all of its property, lessee assuming contracts 
 and being entitled to use company's name wherever necessary to have 
 benefit of its franchise, the company retaining its cr)rporate organization, 
 but issuing no new bonds, was not " doing business." (Public Service Gas 
 Co. V. Herold, 227 Fed., 496.) 
 
 Railroad corporation which had leased all its property to another, 
 which operated and maintained it, paying fixed rental, is not " doing 
 business," through such corporation maintains its corporate existence 
 and has an office where it receives the rental and though it has during 
 the year made improvements paid for by sale of old m.iterial or by cer- 
 tificate of indebtedness of the lessee. (Jasper & E. Ry. Co. r. Walker, 
 238 Fed., 533.) 
 
 Where railroad corporation leased Its property and franchises to an- 
 other railroad company, with approval of legislature granting charter, 
 lease providing that lessor should maintain its corporate existence 
 
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APPENDIX. 717 
 
 but should issue to lessee stock, bonds, or other obligations for comple- 
 tion of branch road, etc., lessee binding itself to discharge such obliga- 
 tions at maturity, issnp.nce of bonds by lessor corporation did not amount 
 to engaging in business. (Anderson v. Morris & E. B. Co., 216 Fed., 83. ) 
 
 Net Income; how determined. 
 
 Second. Such net income shall be ascertained by deducting from 
 the gross amount of the income of such corporation, joint stock com- 
 pany or association, or insurance company, received within the year 
 from all sources, (first) all the ordinary and necessary expenses ac- 
 tually paid within the year out of income in the maintenance and 
 operation of its business and properties, including all charges such 
 as rentals or franchise payments, required to be made as a condition 
 to the continued use or possession of property; (second) all losses 
 actually sustained within the year and not compensated by insurance 
 or otherwise, including a reasonable allowance for depreciation of 
 property, if any, and in the case of insurance companies the sums 
 other than dividends, paid within the year on policy and annuity 
 contracts and the net addition, if any, required by law to be made 
 within the year to reserve funds ; (third) interest actually paid within 
 the year on its bonded or other indebtedness to an amount of such 
 bonded and other indebtedness not exceeding the paid-up capital 
 stock of such corporation, joint stock company or association, or in- 
 surance company, outstanding at the close of the year, and in the 
 case of a bank, banking association or trust company, all interest 
 actually paid by it within the year on deposits; (fourth) all sums 
 paid by it within the year for taxes imposed under the authority of 
 the United States or of any State or Territory thereof, or imposed 
 by the government of any foreign country as a condition to carrying 
 on business therein; (fifth) all amounts received by it within the 
 year as dividends upon stock of other corporations, joint stock com- 
 panies or associations, or insurance companies, subject to the tax 
 hereby imposed : Provided, That in the case of a corporation, joint 
 stock company or association, or insurance company, organized under 
 the laws of a foreign country, such net income shall be ascertained 
 by deducting from the gross amount of its income received within 
 the year from business transacted and capital invested within the 
 United States and any of its Territories, Alaska, and the District of 
 Columbia, (first) all the ordinary and necessary expenses actually 
 paid within the year out of earnings in the maintenance and opera- 
 tion of its business and property within the United States and its 
 Territories, Alaska, and the District of Columbia, including all 
 charges such as rentals or franchise payments required to be made as 
 a condition to the continued use or possession of property; (second) 
 all losses actually sustained within the year in business conducted by 
 it within the United States or its Territories, Alaska, or the District 
 of Columbia not compensated by insurance or otherwise, including 
 a reasonable allowance for depreciation of property, if any, and in 
 the case of insurance companies the sums other than dividends, paid 
 within the year on policy and annuity contracts and the net addition, 
 if any, required by law to be made within the year to reserve funds ; 
 (third) interest actually paid within the year on its bonded or other 
 indebtedness to an amount of such bonded and other indebtedness, 
 not exceeding the proportion of its paid-up capital stock outstanding 
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718 APPENDIX. 
 
 at the close of the year which the gross amount of its income for 
 the year from business transacted and capital invested within the 
 United States and any of its Territories, Alaska, and the District 
 of Columbia bears to the gross amount of its income derived from all 
 sources within and without the- United States; (fourth) the sums 
 paid by it within the year for taxes imposed under the authority of 
 the United States or of any State or Territory thereof; (fifth) all 
 amounts received by it within the year as dividends upon stock of 
 other corporations, joint stock companies or associations, and insur- 
 ance companies, subject to the tax hereby imposed. In the case of 
 assessment insurance companies the actual deposit of sums with State 
 or Territorial officers, pursuant to law, as additions to guaranty or 
 reserve funds shall be treated as being payments required by law to 
 reserve funds. 
 
 Where a terminal railroad company, organized to perform terminal 
 services for railroad companies which owned its stock, and such railroad 
 companies and a trust company entering into an arrangement whereby 
 the trust company made a loan to the terminal company, secured by a 
 pledge by the railroad companies of the stock, the railroad companies 
 agreeing to payj annual interest and sinking fund requirement of the 
 loan, evidenced by bonds which were secured by mortgage on the ter- 
 minal company's property, payments of the installments of interest and 
 sinlsing fund were but payments of rent by the railroad companies to the 
 terminal company to be accounted for as pari of its income, as rent would 
 be, though made direct to the trust company. (Houston Etelt & Terminal 
 Railway Co. v. United States, 250 Fed., 1; T. D. 2710.) 
 
 The words " reserve funds " have reference to the funds ordinarily 
 held as against the contingent liability on outstanding policies. (Mc- 
 Coach V. Insurance Co. of North America, 244 U. S., 585; T. D. 2501.) 
 
 A steamship company is entitled to deduct from gross income amounts 
 paid out for ordinary and necessary repairs in the maintenance and oper- 
 ation of its business and property and in addition a resaonable allowance 
 for depreciation of property, if any. (San Francisco and Portland Steam- 
 ship Co. V. Scott, 253 Fed., 854; T. D. 2773.) 
 
 Though what is a necessary expense of operation and what is a rea- 
 sonable allowance for property depreciation are ultimately questions of 
 fact, so far as they involve legal questions they are absolutely judicial 
 questions, and the declaration in a suit to recover tax which fails to show 
 the making of a new assessment by the Commissioner is therefore not 
 demurrable. (United States v. N. C. & St. L. Ry. Co., 249 Fed., 678; 
 T. D. 2697.) 
 
 " Paid-up capital stock " defined. (United States v. New York, New 
 Haven & Hartford Railroad Co., T. D. 2896.) 
 
 Net income means that which has actually been received, and not that 
 which, although due, has not been received, but payment deferred or 
 postponed. (Mut. Benefit Life Ins. Co. v. Herold, 198 Fed., 199, 214.) 
 
 So-called " dividends " paid annually to policyholders by mutual life 
 Insurance company doing business on the level-premium plan not taxable ; 
 rule not applicable to " dividend " declared in case of full-paid partici- 
 pating policy. (Mutual Benefit Life Insurance Co. v. Herold, 198 Fed., 
 199; 201 Fed., 918; 231 U. S., 755.) 
 
 Income may be defined as gain derived from capital or labor, or from 
 both combined. (Stratton's Independence (Ltd.) v. Howbert, 231 U. S., 
 399; T. D. 1913. Connecticut General Life Insurance Co. v. Eaton, Col- 
 lector, 218 Fed., 188; 223 Fed., 1022.) 
 
 The word " income " means the same as in prior laws imposing a tax on 
 income. (C. C. C. & St. L. Ry. Co. v. United States, 242 Fed., 18.) 
 
 Profits of a corporation distributed to stockholders nominally as sal- 
 aries not deductible from gross income. They do not differ from divi- 
 dends on stock. (Jacobs & Davies (Inc.) v. Collector, 228 Fed., 505; 
 T. D. 2262.) 
 
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APPENDIX. 719 
 
 In computing gross income of corporations subject to tax under act, 
 Interest received on its Government bonds should be included. (28 Op. 
 Atty. Gen., 138.) 
 
 Mortgage indebtedness not assumed by corporation; interest may be 
 deducted. (28 Op. Atty. Gen., 198.) 
 
 In order to determine whetlier there has been gain or loss and the 
 amount of the gain, if any, an amount must be withdravra from the gross 
 proceeds of sale sufficient to restore the capital value that existed on De- 
 cember 31, 1908, notwithstanding any increment of value up to that time 
 had not been entered upon the plaintiffs books of account. Gain on 
 a sale of timber acquired by a lumber manufacturing company before 
 January 1, 1909, and converted into money after that date is income 
 within the meaning of the act, but only such portion of the gain as 
 accrued subsequent to December 31, 1908, is taxable. (Doyle v. Mitchell 
 Bros. Co., 247 U. S., 179; T. D. 2723.) 
 
 For purpose of determining net income, mining corporation is not 
 entitled to deduct from its gross income any amount whatever on ac- 
 count of depletion or exhaustion of ore bodies caused by its operations 
 for year for which the tax is assessed, or to a deduction against gross 
 proceeds from the mining and treatment of ores to the extent of the 
 cost value of the ore in the ground before it was mined, ascertained in 
 compliance with T. D. 1675. (Goldfield Consolidated Mines Co. v. Scott, 
 247 U. S., 126; T. D. 2722.) 
 
 The act measured the tax by the income received within the year for 
 which the assessment was levied, whether it accrued within that year 
 or in some preceding year while the act was in effect ; but it excluded all 
 income that accrued prior to January 1, 1909, although afterwards re- 
 ceived while the act was In effect. When sale of stock resulted In a gain 
 or profit to the extent of the difference between the buying and selling 
 prices, so much of the profits as may be deemed to have accrued subse- 
 quent to December 31, 1908, must be treated as a part of the gross in- 
 come of the respondent. Determination of the value of the capital as- 
 sets on December 31, 1908, is a matter of detail to be settled according 
 to the best evidence obtainable and in accordance with valid depart- 
 mental regulations. (Hays v. Gauley Mountain Coal Co., 247 U. S., 
 189; T. D. 2724.) 
 
 Moneys received from consumers of water for service connections and 
 pipe extensions are not permitted to be deducted from the gross amount 
 of the income, for they do not come within any of the permitted classes 
 of deductions mentioned in the statute. Moneys so expended are in- 
 vested in permanent improvements, which tend to enhance the rental and 
 market value of the water system. (Union Hollywood Water Co. v. 
 Carter, 238 Fed., 329; T. D. 2475.) 
 
 Iron-ore leases of the kind under consideration are not conveyances of 
 the ore in place, but are grants of the privilege of entering upon, dis- 
 covering, and developing and removing the minerals from the land. 
 The lessee of mining property may not deduct the proportionate value of 
 the ore in place on January 1, 1909, with respect to each ton of ore 
 mined, as so much depletion of capital assets, but may deduct a propor- 
 tionate part of the royalty paid in advance. (United States v. Biwabik 
 Mining Co., 247 U. S., 116; T. D. 2721.) 
 
 A railroad corporation purchasing stock in another corporation for 
 investment prior to January 1, 1909, is taxable with respect to so much 
 of the profit upon a sale of the stock as accrued after December 31, 1908 ; 
 value of stock may be determined by an inventory taken as of that 
 date, and the stipulated fact of the market value of the stock on that 
 date may be accepted as supplying the lack of an inventory. (United 
 States V. C. C. C. & St. L. Railroad Co., 247 U. S., 195; T. D. 2725.) 
 
 When premiums received by a mutual insurance company are Income 
 received vnthin the year. (Lumber Mutual Fire Ins. Co. v. Malley, 256 
 Fed., 380.) 
 
 Under State law, where banks pay the State tax imposed on sharehold- 
 ers, but have a lien until reimbursed on the shares of stock and all divi- 
 dends, the tax is not imposed on the banks ; and the taxes so paid can 
 not be legally deducted from gross income in returns made by banks 
 under this act. (National Bank of Commerce v. Allen, 223 Fed., 472; 
 T. D., 2198.) 
 
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720 APPENDIX. 
 
 Income means what has come in, or receipts. Company obligated to 
 report in full total received in cash, both amounts received at home 
 office and those paid to lawful agencies during calendar year. Only 
 net addition to reserve funds required by State statutes is deductible 
 from gross income. No State law has been pointed out which requires 
 maintenance of reserve fund to secure payments of taxes, salaries, 
 and brokerage and agents' commissions. (Maryland Casualty Co. v. 
 United States, 52 Ct. Cls., 201; T. D., 2451.) 
 
 Where railroads seeking to recover from collectors of internal reve- 
 nue taxes illegally assessed, delayed in pressing their claims on account 
 of an understanding with collectors that claims should await decision 
 of other pending cases, but it became apparent that question of interest 
 would have to be submitted to the court, the railroad's conduct did not 
 disentitle them to interest for any lack of diligence in prosecution. 
 (Boston & P. K. Corporation v. Gill, 257 Fed., 221.) 
 
 Where a New Jersey corporation engaged in insurance business was 
 required by New Jersey commissioner of banking and insurance to 
 provide reserve for all policies written though premiums were not fully 
 paid, aU sums paid into reserve are to be excluded in computing gross 
 income for purpose of taxation under act. (Prudential Insurance Co. v. 
 Herold, 247 Fed., 681.) 
 
 Increase in book value of securities held by a banking and trust com- 
 pany does not constitute income received during the year, but should be 
 treated as increase of capital. (Industrial Tr. Co. v. Walsh, 222 Fed., 
 437.) 
 
 Where old rails are replaced with new and heavier rails, wooden 
 bridges and culverts with concrete and steel bridges and culverts, the rule 
 is that the cost of renewals with like kind and quality is allowable, but 
 excess cost is not allowable as a deduction. (Grand Rapids & Indiana 
 Ry. Co. V. Doyle, 245 Fed., 789.) 
 
 Mining corporation engaged in extracting ore from its mines is en- 
 titled to an allowance for depreciation equal to the value in place of the 
 ore extracted and disposed of during the year. (United States v. Nipis- 
 sing Mines Co., 202 Fed., 803; affirmed, 206 Fed., 431.) 
 
 Where property of a coal mining corporation was depreciated for each 
 ton of coal mined to the amount of 15 cents per ton, the corporation 
 could not be taxed on the theory that the full value of the coal mined 
 represented the income, but was entitled to deduct therefrom such 
 amounts as represented depreciation in the mining property. (Forty 
 Fort Coal Co. v. Kirkendall, 233 Fed., 704.) 
 
 Moneys paid a pipe-line corporation by its stockholders was not pay- 
 ment for capital stock, but advances to corporation, and corporation, 
 having no paid-up stock, could not deduct interest on such advances in 
 calculating net income. (Associated Pipe Line Co. v. United States, 258 
 Fed., 800.) 
 
 A corporation which did a brokerage business and bought securities for 
 its customers, who paid only a part of the purchase price, paying interest 
 on balances, the corporation also paying for the securities purchased only 
 part of the purchase price and owing balances on which it paid interest, 
 including in return of gross income the dilference between the interest 
 received and the interest paid, made incorrect return. Interest re- 
 ceived from customers should be included in gross income. Interest 
 paid by corporation on said purchases is allowable as Interest payable 
 on its bonded or other indebtedness. In determining net income, interest 
 can be deducted only to an amount not exceeding paid-up capital stock 
 outstanding at close of year. (Altheimer & Rawlings Investment Co. v. 
 Allen, 248 Fed., 688; 248 U. S., 578; T. D. 2686.) 
 
 Interest on bonds or other indebtedness is an allowable deduction 
 from gross income only to an amount paid upon bonded or other in- 
 debtedness not exceeding the corporation's paid-up capital stock. (Bos- 
 ton Terminal Co. v. Gill, 246 Fed., 664 ; T. D. 2671. ) 
 
 Where a railroad company sold bonds and equipment notes at a 
 discount in 1906, and the books show the loss was entirely charged off 
 under the proflt-and-loss account for 1906, and the company in making 
 returns under the act of August 5, 1909, for the purpose of assessment 
 of excise tax for years 1911 and 1912, failed to deduct the propor- 
 tionate amount of discount sustained, it has no right to claim refund 
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APPENDIX. Y21 
 
 of such amount. (Chicago & Alton R. R. Co. v. United States, 53 Ct. Cls., 
 41; T. D 2631) 
 
 Where a corporation sold mortgage bonds at a discount, amount of 
 discount was not an " expense of the business " and was not deductible ; 
 but where it appraised certain property at a higher valuation and other 
 property not previously appraised, the apparent increase was not a part 
 of Its income. (Baldwin Locomotive Works -f. MeCoach, 221 Fed., 59; 
 T. D. 2185.) 
 
 Building and loan association is " organized and operated exclusively 
 for the mutual benefit of its members," and is therefore entitled to 
 exemption from the tax even if it issues both prepaid and installment 
 stock ; the prepaid stock being entitled to a fixed dividend, payable, 
 however, only out of earnings of the association. (Herold v. Parkview 
 B. & L. Ass'n, 210 Fed., 577; T. D. 1941.) 
 
 State tax on capital stock of banks under Massachusetts statute falls 
 directly on the stockholders, and these taxes can not be legally deducted 
 from gross income made by banks under the corporation excise tax act. 
 The tax is not upon the banks, and in paying It they act as agents. 
 (Eliot National Bank v. Gill, 218 Fed., 600; T. D. 2121.) 
 
 Under Rev. St., sections 3224, 3226, forbidding maintenance of any 
 suit to restrain assessment or collection of taxes by United States and 
 conferring right to sue for recovery of taxes paid under protest, a cor- 
 poration had an adequate remedy at law to recover income taxes assessed 
 under act of 1909. A stockholder could not, therefore, maintain a suit 
 to restrain the corporation from paying the tax on the ground that the 
 corporation was not subject to assessment. (Straus v. Abrast Realty 
 Co., 200 Fed., 327; T. D. 1788.) 
 
 Under acts, Tennessee, 1895, chapter 160, paragraphs 1, 8, 16, relating 
 to insurance companies, reserve funds are not required by law to be so 
 maintained as to include additional sums reserved to satisfy unpaid 
 los.ses accrued or prospected. And no deductions for amounts so re- 
 served, though reqiiired by the Insurance commission, can be allowed 
 under act of 1909 in computing a Tennessee company's net income for 
 taxation, though the act provided for deduction of any additions to 
 reserve funds required by law. (National Life and Accident Ins. Co. v. 
 Craig, 251 Fed., 524.) 
 
 Where property Is sold by a corporation at an advance over the original 
 purchase price, the amount of such advance Is a gain or profit received 
 during the year for the purpose of computing Its net income. (Scott v. 
 Schwab, 255 Fed., .57.) 
 
 State, county, and municipal taxes paid by a bank under laws, Florida, 
 1907, chapter 5.596, paragraph 8, constitute a liability of the bank, and 
 not of its stockholders, and are to be deducted from the gross income 
 of the bank to ascertain the net amount on which the 1 per cent of 
 excise tax under this act is to be calculated. (United States v. Guaranty 
 Trust and Savings Bank, 2.53 Fed., 291.) 
 
 Interest on bonds of corporation engaged in leasing and operating an 
 office building erected by It on its own realty can be deducted only to an 
 amount not exceeding the paid-up capital stock outstanding at the close 
 of the year. (Anderson v. Forty-two Broadway Co., 239 U. S., 69; T. D. 
 2261.) 
 
 Dividends declared by insurance companies are the dividends referred 
 to as not being deductible from gross income, and when such dividends 
 are applied to the payment of renewal premiums to shorten the endow- 
 ment or premium-paying period, to purchase paid-up additions and 
 annuities, etc., they must be Included In and accounted for as income. 
 (T. D. 1743.) 
 
 Expenditures for labor and material and for replacements of old rails 
 and wooden bridges with new rails and steel bridges not exceeding orig- 
 inal costs for same are allowable deductions from gross income ; expendi- 
 tures for additions and betterments to property, such as building new 
 sidings, spur tracks, stations and shops, and Installing new machinery, 
 are not allowable deductions ; " maintenance " defined. (Grand Rapids & 
 Ind. R. R. Co. V. Doyle, 245 Fed., 792; T. D. 2210.) 
 
 Insurance companies owning securities taken at market value may not 
 deduct as depreciation net decrease in market value of sueh securities; 
 sums due the United Si^seek bpMHot&eOf^kgaitifit amount found due 
 
 140184°— 20 46 
 
722 APPENDIX. 
 
 taxpayer in suit against collector, though included therein are items which 
 Commissioner did not claim to be due when considering return for assess- 
 ment purposes. (T. D. 2882.) 
 
 Interest paid by corporation on sum representing premiums received 
 from sale of stock can not be deducted in ascertaining net income. (T. D. 
 2880.) 
 
 Inclusion of supplementary contracts, as exhibiting reserve liability, 
 in calculation of annual net addition to reserve, to be deducted from 
 income of mutual life Insurance company, is v?arranted. (Northwestern 
 Mutual Life Insurance Co. r. Finis, 248 Fed., 568.) 
 
 Company chartered to sell securities not allowed to deduct amounts 
 paid as interest to purchasers of evidences of indebtedness issued by it 
 and termed " debenture bonds " ; amount paid to purchasers of n6tes and 
 bonds secured by mortgages on real estate and sold and assigned to in- 
 vestors with the company's guaranty, not allowed as deduction. (Middle- 
 sex Banking Co. v. Eaton, 233 Fed., 87; T. D. 2320.) 
 
 Tax paid to a State by various corporations on shares of their stock 
 owned by another corporation are not deductible from gross income of 
 latter corporation as taxes paid by it. (United States v. Aetna Life 
 Insurance Co., T. D. 2927.) 
 
 Where corporation sold bonds at a discount during 1906, 1907, and 
 1908, no deduction from gross income for the years 1909, 1910, and 1911 
 of sums set aside to pay such discount at maturity of bonds is per- 
 mitted : Baldwin Locomotive Works v. McCoach explained. (Southern 
 Pac. E. R. Co. V. Muenter, 260 Fed. 837 ; T. D. 2944.) 
 
 Annual returns required from officers of corporation; compntation of tax. 
 
 Third. There shall be deducted from the amount of the net income 
 of each of such corporations, joint stock companies or associations, 
 or insurance companies, ascertained as provided in the foregoing- 
 paragraphs of this section, the sum of five thousand dollars, and said 
 tax shall be computed upon the remainder of said net income of svich 
 corporation, joint stock company or association, or insurance coni- 
 panj', for the year ending December thirty-first, nineteen hundred 
 and'nine, and for each calendar year thereafter; and on or before the 
 first day of March, nineteen hundred and ten, and the first day of 
 March in each year thereafter, a true and accurate return under oath 
 or affirmation of its president, vice-president, or other principal offi- 
 cer, and its treasurer or assistant treasurer, shall be made by each of 
 the corporations, joint stock companies or associations, and insurance 
 companies, subject to the tax imposed by tliis section, to the collector 
 of internal revenue for the district in -which such corporation, joint 
 stock company or association, or insurance company, has its principal 
 place of business, or, in the case of a corporation, joint stock com- 
 pany or association, or insurance company, organized under the laws 
 of a foreign country, in the place where its principal business is car- 
 ried on within the United States, in such form as the Commissioner 
 of Internal Revenue, with the approval of the Secretary of the Treas- 
 ury, shall prescribe, setting forth (first) the total amount of the 
 paid-up capital stock of such corporation, joint stock company or as- 
 sociation, or insurance company, outstanding at the close of the year ; 
 (second) the total amount of the bonded and other indebtedness of 
 such corporation, joint stock company or association, or insurance 
 company at the close of the year; (third) the gross amount of the in- 
 come of such corporation, joint stock company or association, or in- 
 surance company, received during such year from all sources, and if 
 organized under the laws of a foreign country the gross amount of 
 
 its income received within the .year from hi;siness transacted and cap- 
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APPENDIX. 723 
 
 ital invested within the United States and any of its Territories, 
 Alaska, and the District of Columbia; also the amount received by 
 such corporation,, joint stock company or association, or insurance 
 company, within the year by way of dividends upon stock of other 
 corporations, joint stock companies or associations, or insurance com- 
 panies, subject to the tax imposed by this section; (fourth) the total 
 amount of all the ordinary and necessary expenses actually paid out 
 of earnings in the maintenance and operation of the business and prop- 
 erties of such corporation, joint stock company or association, or in- 
 surance company, within the year, stating separately all charges such 
 as rentals or franchise payments required to be made as a condition to 
 the continued use or possession of jDroperty, and if organized under 
 the laws of a foreign country the amount so paid in the maintenance 
 and operation of its business within the United States and its Ter- 
 ritories, Alaska, and the District of Columbia; (fifth) the total 
 amount of all losses actually sustained during the year and not com- 
 pensated by insurance or otherwise, stating separately any amounts 
 allowed_ for depreciation of property, and in the case of insurance 
 companies the sums other than dividends, paid within the year on 
 policy and annuity contracts and the net addition, if any, required 
 by law to be made within the year to reserve funds ; and in the case 
 of a corporation, joint stock company or association, or insurance 
 company, organized under the laws of a foreign country, all losses 
 actually sustained by it during the year in business conducted by it 
 within the United States or its Territories, Alaska, and the District 
 of Columbia, not compensated by insurance or otherwise, stating 
 separately any amounts allowed for depreciation of property, and in 
 the case of insurance companies the sums other than dividends, paid 
 within the year on policy and annuity contracts and the net addition, 
 if any, required by law to be made within the year to reserve fund ; 
 (sixth) the amount of interest actually paid within the year on its 
 bonded or other indebtedness to an amount of such bonded and other 
 indebtedness not exceeding the paid-up capital stock of such cor- 
 poration, joint stock company or association, or insurance company, 
 outstanding at the close of the year, and in the case of a bank, 
 banking association or trust company, stating separately all interest 
 paid by it within the year on deposits; or in case of a corporation, 
 joint stock company or association, or insurance company, organized 
 under the laws of a foreign country, interest so paid on its bonded 
 or other indebtedness to an amount of such bonded and other in- 
 debtedness not exceeding the proportion of its paid-up capital stock 
 outstanding at the close of the year, which the gross amount of its 
 income for the year from business transacted and capital invested 
 within the United States and any of its Territories, Alaska, and the 
 District of Columbia, bears to the gross amount of its income derived 
 from all sources within and without the United States; (seventh) 
 the amount paid by it within the year for taxes imposed under the 
 authority of^the United States or any State or Territory thereof, 
 and separately the amount so paid by it for taxes imposed by the 
 government of any foreign country as a condition to carrying on 
 business therein; (eighth) the net income of such corporation, joint 
 stock company or association, or insurance company, after making 
 
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724 APPENDIX. 
 
 the deductions in this section authorized. AH such returns shall as 
 received be transmitted forthwith by the collector, to the Commis- 
 sioner of Internal Revenue. 
 
 Assets belonging to corporations liable to this tax are subject to the 
 
 lien created by section 3186, R. S., after demand has been made for the 
 
 ; tax. "Where assets have been distributed prior to such demand the 
 
 Government may collect the tax by pursuing the assets Into the hands 
 
 of tlie stockholders. (28 Op. Atty. Gen., 241; T. D. 1615.) 
 
 Company must report in full total sums received in cash, both 
 amounts received at home office and those paid to its lawful agencies 
 ; during calendar year; only net addition to reserve funds required by 
 
 State statute is deductible. (Maryland Casualty Co. v. United States, 
 52 Ct. CIS., 201; T. D. 2451.) 
 , As the tax imposed is measured by and is not a tax upon the net 
 
 receipts of corporations, etc., interest received during the year on Gov- 
 ernment bonds is not a proper deduction from such income in determin- 
 ing the amount of tax due. (28 Op. Atty. Gen., 138; T. D. 1583.) 
 
 Dividends received by corporations on stock of other corporations 
 whose net income does not exceed $5,000 is nevertheless a proper de- 
 duction under the law. (28 Op. Atty. Gen., 140. ) 
 
 Mortgage indebtedness on real estate, If assumed by the corporation 
 acquiring such real estate, to be included in the indebtedness of the 
 corporation. But if not so assumed and remains only as a lien on the 
 property, interest paid thereon may be deducted as a charge " made as 
 a condition to the continued use or possession of the property." (28 Op 
 Atty. Gen., 198.) 
 
 Corporations having net income of $5,000 or less not exempt from 
 requirement that return be made to collector of district. (United States 
 V. Acorn Roofing Co., 204 Fed., 157 ; T. D. 1784 ; United States v. Mili- 
 tary Construction Co., 204 Fed., 153; T. D. 1774; T. D. 1729.) 
 
 State taxes imposed on shareholders which are paid by bank can not 
 be legally deducted from gross income in returns made by bank. (T. D. 
 1763; National Bank of Commerce v. Allen, 223 Fed., 472; T. D. 2198.) 
 
 Insurance reserves and sum set aside for amortization of bonds are 
 properly deductible from gross income In making returns of annual 
 net income. (T. D. 1727.) 
 
 Where returns were filed within time required and returned for cor- 
 rection, and correct return subsequently filed, name should be stricken 
 from delinquent list. (T. D. 1711.) 
 
 Increa.sed valuations of assets entered on books of corporations to be 
 included in gross income ; said valuations not required to be entered 
 on books. (T. D. 1706.) 
 
 Corporation which sold bonds at discount during 1906, 1907, and 1908 
 not entitled to deduct from gross income for years 1909, 1910, and 1911 
 sums set aside to pay such discount at maturity of bonds; Baldwin 
 Locomotive Works v. McCoach explained. (Southern Pac. R. R. Co. v. 
 Muenter, T. D. 2944.) 
 
 Receivers of insolvent corporation which was not doing business when 
 this act was passed, and has done no business since, are not within the 
 act nor required to make returns and pay taxes on the income realized 
 by them while acting as officers of the court and under its direction. 
 (Pennsylvania Steel Co. v. New York City Railway Co., 198 Fed., 774.) 
 
 Precednre when rctarus are Incorrect; failure to make returns; examination of books; compelling 
 
 attendance of witnesses. 
 
 Fourth. Whenever evidence shall be produced before the Coito- 
 missioner of Internal Eevenue which in the opinion of the Com- 
 missioner justifies the belief that the return made by any corporation, 
 joint stock company or association, or insurance company, is in- 
 correct, or whenever any collector shall report to the Commissioner 
 of Internal Eevenue that any corporation, joint stock company or 
 association, or insurance company, has failed to make a return as 
 required by law, the (^^j^^^/iiyft^ofeto'^l Eevenue may require 
 
APPENDIX. 725 
 
 from the corporation, joint stock company^r dissociation^ or in-, 
 surance company making such return, such further information 
 with reference to its capital, income, losses, and expenditures as he 
 may deem expedient; and the Commissioner of Internal Kevenue, 
 for the purpose of ascertaining the correctness of such return or for 
 the purpose of making a return where none has been made, is hereby 
 authorized, by any regularly appointed revenue agent specially 
 designated by him for that purpose, to examine any books and papers 
 bearing upon the matters required to be included in the return of 
 such corporation, joint stock company or association, or insurance 
 company, and to rec[uire the attendance of any officer or employee 
 of such corporation, ]oint stock company or association, or insurance 
 company, and to take his testimony with reference to the matter 
 required by law to be included in such return, with power to ad- 
 minister oaths to such person or persons ; and the Commissioner of 
 Internal Revenue may also invoke the aid of any court of the United 
 States having jurisdiction to require the attendance of such officers 
 or employees and the production of such books and papers. Upon 
 the information so acquired the Commissioner of Internal Kevenue 
 may amend any return or make a return where none has been made. 
 All proceedings taken by the Commissioner of Internal Revenue 
 under the provisions of this section shall be subject to the approval 
 of the Secretary of the Treasury. 
 
 Commissioner of Internal Revenue, upon evidence produced before 
 him, is authorized to mals:e, or amend incorrect, return, as the case may 
 be ; he is also authorized to malje additional assessments after taxes 
 have been assessed and paid on original returns, even though errors in 
 the original returns were made without any intention to deceive or 
 mislead. (Eliot National Bank «. Gill, 218 Fed., 600; T. D. 2121.) ' 
 
 The Commissioner has power to make a new assessment within three 
 j-ears in case an incorrect return has been made; there is no necessity 
 of construing the word " false," where it Is used with reference to the 
 time in whicli the Commissioner shall act, to mean fraudulently false. 
 (National Bank of Commerce v. Allen, 223 Fed., 472; T. D. 2198.) 
 
 Corporation which, as stockholder, receives dividends from another 
 corporation, may not deduct taxes paid on its stock in its behalf by latter 
 corporation, where it did not include amount of such taxes in return of 
 gross income. (United States v. Aetna Life Ins. Co., 260 Fed., 333.) 
 
 Assessment at tax; additional tax; payment of tax; penalties; notice. 
 
 Fifth. All returns shall be retained by the Commissioner of In- 
 ternal Revenue, who shall make assessments thereon; and in case of 
 any return made with false or fraudulent intent, he shall add one 
 hundred per centum of such tax, and in case of a refusal or neglect 
 to make a return or to verify the same as aforesaid he shall add fifty 
 per centum of such tax. In case of neglect occasioned by the sick- 
 ness or absence of an officer of such corporation, joint stock com- 
 pany or association, or insurance company, required to make said 
 return, or for other sufficient reason, the collector may allow such 
 fuilher time for making and delivering such return as he may deem 
 necessary, not exceeding thirty days. The amount so added to the 
 tax shall be collected at the same time and in the same manner as the 
 tax originally assessed unless the refusal, neglect, or falsity is dis- 
 covered after the date for payment of said taxes, in which case the 
 amount so added shall be paid by the delinquent corporation, joint 
 stock company or asso.cia.tion. or insurance company, immediately 
 upon notice given byM!8'e'^S«l&dtOTi''''9Sfl"®sessments shall be made 
 
726 APPENDIX. 
 
 and the several corporations, joint stock companies or associations, 
 or insurance companies, shall be notified of the amount for which 
 they are respectively liable on or before the first day of June of each 
 successive year, and said assessments shall be paid on or before the 
 thirtieth day of June, except in cases of refusal or neglect to make 
 such return, and in cases of false or fraudulent returns, in which 
 cases the Commissioner of Internal Revenue shall, upon the discovery 
 thereof, at any time within three years after said return is due, make 
 a return upon information obtained as above provided for, and the 
 assessment made by the Commissioner of Internal Revenue thereon 
 shall be paid by such corporation, joint stock company or association, 
 or insurance company immediately upon notification of the amount 
 of such assessment ; and to any sum or sums due and unpaid after the 
 thirtieth day of June in any year, and for ten days after notice and 
 demand thereof by the collector, there shall be added the sum of five 
 per centum on the amount of tax unpaid and interest at the rate of 1 
 per centum per month upon said tax from the time the same becomes 
 due. 
 
 Notice of assessment may be sent by mail; notice sent in franked 
 envelope bearing return card, and not returned, presumptively received. 
 (United States v. General Inspection & Loading Co., 204 Fed., 6-57.) 
 
 Tlie word " false," as used in tlie fifth subdivision of section 38, means 
 " untrue " or " incorrect," and does not necessarily mean intentionally or 
 fraudulently false. This act does not make the remedy by way of a 
 reassessment by the Commissioner exclusive of all other remedies for 
 collection of excise tax imposed on corporations, and suit may be brought 
 under Revised Statutes, section 3213, without any such reassessment. 
 (United States r. N. C. & St. L. By. Co., 249 Fed., 678; T. D. 2697.) 
 
 Taxpayer having understated in its orignal return the amount for 
 which it was subject to tax is not entitled to recover any part of a sec- 
 ond assessment paid, although the original returo was made in good 
 faith and without any intention to escape lawful tax. (Camp Bird, Ltd., 
 V. Howbert, 249 Fed.. 27 ; T. D. 2661 ; reversed, 248 U. S., 590. ) 
 
 Regulations relating to the assessment and collection of the special 
 excise tax imposed on corporations, joint-stock companies, associations, 
 and insurance companies. (Regulations Ko. 31; T. D. 1571.) 
 
 Action of debt may be brought against a corporation to recover back 
 taxes. Suit is maintainable notwith.standing assessment can not be made ; 
 suit not barred by a three-year limitation in act of 1909. (United States 
 V. Minneapolis Threshing Machine Co., 229 Fed., 1019 ; T. D. 22S5. ) 
 
 The three-year limitation is not a limitation upon the right of the 
 Government to sue for unpaid taxes, but at most is a limitation upon the 
 right of collecting officers to make assessment and to enforce payment 
 by the summary statutory proceedings ; suit for taxes will lie without 
 assessment (United States v. Grand Rapids & Indiana R. Co., 239 Fed., 
 153; T. D. 2166.) 
 
 In the provision of the act relative to assessments, the word " false " 
 includes returns which are merely incorrect. In some instances the term 
 " false " as used in the act means willfully and intentionally false. The 
 statute does not require the additional assessment to be made within the 
 three-year period. (Eliot National Biinb v. Gill, 218 Fed., 600: T. D. 
 212L) 
 
 Administrative officers unauthorized to relieve corporations from re- 
 quirement that additional tax of 50 per cent shall be paid in case of 
 failure to make return within prescribed time. (T. D. 1701.) 
 
 Assessed taxes held to be due and payable 10 days after actual mailing 
 of notice and demand, Form 17. (T. D. 1659.) 
 
 Ketnrns to be filed in office of Commissioner of Internal Ecrenue. 
 
 Sixth. Wlien the assessment shall be made, as provided in this 
 section, the returns, together with any corrections thereof which may 
 have been made by th^d^tizscl^ioMefQMB^e filed in the office of the 
 
APPENDIX. 727 
 
 Commissioner of Internal Eevenue and shall constitute public records 
 and be open to inspection as such. 
 
 Amended by the act of June 17, 1910, which provides that the returns 
 shall be open to inspection only upon the order of the President, page 728. 
 Publicity clause. (T. D. 1594. T. D. 1665.) 
 
 GoTernment offlcer or cmployoe divulging information; penalty. 
 
 Seventh. It shall be unlawful for any collector, deputy collector, 
 agent, clerk, or other officer or employee of the United States to 
 divulge or make known in any manner whatever not provided by 
 law to any person any information obtained by him in the dis- 
 charge of his official duty, or to divulge or make known in any man- 
 ner not provided by law any document received, evidence taken, 
 or report made under this section except upon the special direction 
 of the President; and any offense agamst the foregoing provision 
 shall be a misdemeanor and be punished by a fine not exceeding 
 one thousand dollars, or by imprisonment not exceeding one year, 
 or both, at the discretion of the court. 
 
 Failure to malce true rctnrns; take retarng; applicability of general rcvenne laTTs; jnrlsdlctlon to 
 compel testimony and production of boolcs, etc. 
 
 Eighth. If any of the corporations, joint stock companies or 
 associations, or insurances companies, aforesaid, shall refuse or neg- 
 lect to make a return at the time or times hereinbefore specified 
 in each year, or shall render a false or fraudulent return, such corpo- 
 ration, ]oint stock company or association, or insurance company, 
 shall be liable to a penalty of not less than one thousand dollars 
 and not exceeding ten thousand dollars. 
 
 Any person authorized by law to make, render, sign, or verify 
 any return who makes false or fraudulent return, or statement, with 
 intent to defeat or evade the assessment required by this section 
 to be made, shall be guilty of a misdemeanor, and shall be fined 
 not exceeding one thousand dollars or be imprisoned not exceeding 
 one 3'ear, or both, at the discretion of the court, with the costs of 
 prosecution. 
 
 All laws relating to the collection, remission, and refund of in- 
 ternal-revenue taxes, so far as applicable to and not inconsistent 
 with the provisions of this section, are hereby extended and made 
 applicable to the tax imposed by this section. 
 
 Jurisdiction is hereby conferred upon the circuit and district 
 courts of the United States for the district within which anj^ per- 
 son summoned under this section to appear to testify or to produce 
 books, as aforesaid, shall reside, to compel such attendance, produc- 
 tion of books, and testimony by appropriate process. 
 
 Synopsis of decisions relating to the tax. (T. D. 1606, 1675.) 
 Suit to recover back taxes collected can not be maintained against the 
 successor of collector to whom the taxes were paid, except in his in- 
 dividual capacity; remedy either lies in an action against the collec- 
 tor who actually received the taxes or in an action against the United 
 States; act of February 8, 1899, was to enable proceedings pending 
 against public officials in their official capacity to be continued when 
 necessarv to obtain settlement of questions involved. (Eoberts v. Lowe, 
 236 Fed., 604; T. D. 2394.) 
 
 Remedy by suit against collector where taxes have been wrongfully 
 collected is not made exclusive by provisions that all laws relating to 
 collection, remission, and refund of taxes, so far as applicable, are es- 
 
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728 APPENDIX. 
 
 tended to the corporation excise tax. (United States v. Emery, Bird, 
 Thayer Realty Co., 237 U. S. 28.) 
 
 Suit to recover taxes erroneously or illegally assessed can only be 
 brought against collector who collected taxes, and not his successor, 
 (Philadelphia, Harrisburg & Pittsburgh R. C. v. Lederer, 242 Fed., 492. 
 T. D. 2.507.) 
 
 Penalty for failure to make prescribed returns. (T. D. 1692.) 
 
 Penalty prescribed is constitutional ; acceptance of return by Com- 
 missioner is not a waiver of the penalty. (T. D. 1864.) 
 
 Where corporations have gone out of business, leaving no assets, 
 no proceedings to be instituted for penalty for failure to make re- 
 turn ; assets distributed among stockholders available for collection 
 of tax but not for penalty. (T. D. 1852.) 
 
 Appropriation for expenses of collecting tax ; retnrns open to inspection by order of President. 
 
 [Extract from the legislative, executive, and judicial appropriation act for tlie fiscal year 
 
 ending June 30, 1911, approved June 17, 1910. (36 Stat., 494.)] 
 
 ******* 
 
 For expenses of collecting the corporation tax authorized by the 
 Act approved August fifth, nineteen hundred and nine: "To pro- 
 vide revenue, equalize duties, and encourage the industries of the 
 United States, and for other purposes," one hundred thousand dol- 
 lars. 
 
 For classifying, indexing, exhibiting and properly caring for the 
 returns of all corporations, required by section thirty-eight of an 
 Act entitled "An Act to provide revenue, equalize duties, encourage 
 the industries of the United States, and for other purposes," ap- 
 proved August fifth, nineteen hundred and nine, including the em- 
 ployment, in the District of Columbia, of such clerical and other per- 
 sonal services and for rent of such quarters as may be necessary, 
 twenty-five thousand dollars: Provided, That any and all such re- 
 turns shall be open to inspection only upon the order of the President 
 under rules and- regulations to be prescribed by the Secretary of the 
 Treasury and approved by the President. 
 
 See also the legislative, executive, and judicial appropriation act ap- 
 proved March 4, 1911, which appropriated the same amount for the year 
 ended June 30, 1912, repeating the proviso. (36 Stat., 1197.) 
 
 Deficiency appropriation act of March 4, 1911 (36 Stat., 1291), appro- 
 priated $5,000 for the purposes above .specified, repeating the proviso. 
 
 Executive order and regulations governing the publicity of returns, 
 November 25, 1910. (T. D. 1065.) 
 
 [Extract from the deficiency appropriation act for 1910 fact of June 2.5, 1910, 36 Stat, 
 
 780M 
 
 The Commissioner of Internal Revenue, with the approval of 
 the Secretary of the Treasury, is authorized out of the appropriation 
 made for the purpose of carrying into effect section thirty-eight of 
 the tariff Act of August fifth, nineteeen hundred and nine, for the 
 fiscal year nineteen hundred and eleven, and out of the balance of 
 the appropriation for that loui'pose for the fiscal year nineteen hun- 
 dred and ten, which balance is hereby reappropriated and made 
 available for the fiscal year nineteen hundred and eleven, tO' employ 
 such additional force of internal-revenue agents, inspectors, deputy 
 collectors, clerks, laborers, and other assistants as he may deem 
 proper and necessary to the prompt operation and enforcement of 
 said section thirty-eight. 
 
 See also the deficiency appropriation act of March 4, 1911 (36 Stat., 
 1291), which reenaQ^'^tSfj|bi)KS'MJOnaSO#@dditional force. 
 
APPENDIX. 
 
 729 
 
 Befnnd or abatement of penalty taxes. 
 
 An act to provide for refund or abatement tinder certain conditions of penalty 
 taxes imposed by section 38 of the act of August 5, 1909, known as the special 
 excise corporation-tax law, approved March 3, 1913 (37 Stat., 734). 
 
 Be it enacted, etc., That any corporation, joint-stock company, 
 association, or any insurance company subject to the special excise 
 tax provided by section thirty-eight of the act of August fifth, nine- 
 teen hundred and nine, known -as the special excise corporation-tax 
 law, which has been or may be compelled to pay or become liable for 
 any additional tax within the provisions or subsection five of said 
 section thirty-eight, which additional tax has been or may hereafter 
 be imposed for a neglect to file a return as provided in said corpora- 
 tion-tax law on or before the first of March of any year, may, 
 within one year after the passage of this act or within one year after 
 the date of notice of assessment where such notice is given after the 
 passage of this act, make application to the Commissioner of Internal 
 Eevenue for a refund of such additional tax. And the Commis- 
 sioner of Internal Revenue, with the advice and consent of the 
 Solicitor of Internal Eevenue, is hereby directed to remit, abate, or 
 pay back all such additional taxes in excess of $100 for any single 
 year whenever in any case it appears to his satisfaction that the addi- 
 tional tax was assessed or imposed solely because of a neglect to make 
 a return at the time or times specified in said act, and without any 
 intention or design on the part of any officer of such corporation, 
 joint-stock company, association, or insurance company to hinder or 
 delay the United States in the collection of the tax originally assessed.- 
 
 Claim for abatement or refund required to be made on Form 47 or 46, 
 respectively ; claims required to be accompanied by affidavit of corpora- 
 tion's president, vice president, or other principal officer, and its treasurer 
 or assistant treasurer, stating that neglect to make return was without 
 Intent or design to hinder or delay the United States in collection of tax, 
 etc. (T. D. 1838.) 
 
 Chapter 8. 
 
 INCOME TAX. 
 
 AN ACT To reduce tarifE duties and to provide revenue for the Government, and 
 for other purpo.ses. Approved October 3, 1913 (38 Stat, 114, 166.) 
 
 Normal tax. 
 
 Additional tax. 
 
 Personal return ; regulations. 
 
 Holding companies ; accumulation of 
 profits beyond needs. 
 
 Statement of profits. 
 
 Income defined. 
 
 Proceeds of life insurance policies ex- 
 empt. 
 
 Deductions. 
 
 Persons residing abroad. 
 
 Interest on State and United States 
 bonds to be excluded; 
 
 Additional exemption in the case of 
 married persons. 
 
 Time for computing tax ; returns. 
 
 Firms, companies, corporations, etc., to 
 withhold tax and make return. 
 
 Partnership tax. Digitized by 
 
 Return not required of income from 
 dividends of taxable corporations. 
 
 Understatements ; appeal from collec- 
 tor. 
 
 Assessments, notice of, payment of — 
 return by Commissioner within three 
 years. 
 
 Fi^•e per cent penalty and interest. 
 
 Collection of tax at the source. 
 
 False statement ; penalty. 
 
 Eeturns for minors, insane persons, 
 and absentees. 
 
 Tax to be withheld from interest on 
 bonds. 
 
 A\'ithholdlng tax from interest on for- 
 eign bonds. 
 
 License to engage in business of col- 
 lecting foreign payments. 
 MiQpO'&Sft®; returns ; regulations. 
 
730 
 
 APPENDIX. 
 
 Deduction at source applies to normal 
 tax only. 
 
 Penalty for neglect or refusal to make 
 return or for making false or fraud- 
 ulent return. 
 
 Tax on corjporations. 
 
 Organizations exempt. 
 
 Income derived from public utility or 
 governmental function. 
 
 Deductions allowed. 
 
 Tax ; liov? computed ; calendar year. 
 
 Returns, date of making; require- 
 ments. 
 
 Assessments ; notice and payment. 
 
 Payment by corporation designating 
 different fiscal year. 
 
 Commissioner to make return and as- 
 sessment within three years. 
 
 Five per cent penalty and interest. 
 
 Returns to be filed ; publicity ; inspec- 
 tion, when allowed. 
 
 Corporations neglecting to make re- 
 turn or making false return ; pen- 
 alty. 
 
 Construction of word " State " or 
 "United States." 
 
 Reenactment of sections 3167, 3172, 
 3173, 3176, Revised Statutes. 
 
 Officers or employees divulging infor- 
 mation. 
 
 Canvass of districts. 
 
 Returns; authority to issue summons 
 to appear and testify. 
 
 Collection of 100% and 50% addi- 
 tional to tax in case of failure to 
 make return or of false or fraudu- 
 lent return. 
 
 Receipts for taxes. 
 
 Jurisdiction. 
 
 General provisions extended and made 
 applicable. 
 
 Porto Rico and the Philippine Islands. 
 
 Appropriation ; ofiicers and employees. 
 
 Articles coming into the United States 
 from the Philippine Islands and 
 articles going into the Philippine 
 Islands :^om the United States. 
 
 Porto Rico. 
 
 Manufacture of articles intended for 
 exportation in bonded warehouses. 
 
 Drawback. 
 
 Articles reimported. 
 
 Repeal in part of act of August 5, 
 1909 ; saving clause. 
 
 Refund of offers in compromise. 
 
 Section II. 
 
 >ormal tax. 
 
 A. Subdivision 1. That there sliall be levied, assessed, collected, 
 and paid annually upon the entire net income arising or accruing 
 from all sources in the preceding calendar year to every citizen of 
 the United States, whether residing at home or abroad, and to every 
 person residing in the United States, though not a citizen thereof, 
 a tax of 1 per centum per annum upon such income, except as here- 
 inafter provided; and a like tax shall be assessed, levied, collected, 
 and paid annually upon the entire net income from all property 
 owned, and of every business, trade, or profession carried on in the 
 United States by persons residing elsewhere. 
 
 Act is not unconstitutional. (Brushaber v. Union Pacific Co., 240 U. S., 
 1, T. D. 2290 ; Dodge v. Brady, 240 U. S., 123, T. D. 2302 ; Tyee Realty 
 Co. r. Anderson, 240 U. S., 115, T. D. 2300 ; Stanton v. Baltic Jlining Co., 
 240 U. S., 103, T. D. 2303.) 
 
 Where an income tax law is doubtful, doubt should be resolved in 
 favor of the taxpayer against the Government. (Miller v. Gearin, 258 
 Fed., 225.) 
 
 Commissions of general life insurance agent from renewal premiums 
 on policies obtained by him and accepted in some year prior to " preced- 
 ing calendar year" mentioned are taxable. (Woods v. Lewellyn, 252 
 Fed., 106.) 
 
 Statute can not be changed by regulations. (Edwards v. Keith, 231 
 Fed., 110.) 
 
 Tax is not laid on articles in course of exportation or on anything 
 which inherently or by usages of commerce is embraced in exportation, 
 but on the contrary is a general tax. (Wm, E. Peck & Co. v. Lowe, 247 
 U. S., 165; T. D. 2726.) 
 
 Section does not lay tax upon interest accruing on bonds executed by 
 resident or citizen of United States when held and owned by nonresident 
 foreigner. (30 Op. Attx. Gen., 230.) „_ 
 
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APPENDIX. 731 
 
 Dividends accruing from stock of domestic corporation owned by non- 
 resident aliens are not subject to tax. (30 Op. Atty. Gen., 273.) 
 
 Income received by nonresident alien from stocks and bonds of cor- 
 porations organized under United States laws and mortgages and bonds 
 secured upon property in United States, certificates representing same 
 being held by domestic trust company, is property owned in United States. 
 (De Ganay v. Lederer, 250 U. S., 376; T. D. 2876.) 
 
 "Residence" defined; vsrho are nonresident alien individuals. (T. Ds. 
 2242, 2794.) 
 
 Accrued interest is deductible from gross income when sho^vn as charge 
 against accrued income upon the books of account kept on an accrued 
 basis. (T. D. 2625.) 
 
 The general provisions of law, including laws in relation to collection 
 and refund of tax, are applicable to the income tax lav.-. (Dodge v. 
 Osborn, 240 U. S., 118; T. D. 2301.) 
 
 Interest from bonds and dividends on stocks of domestic corporation 
 owned by aonresident aliens held nontaxable. (T. D. 2162.) 
 
 Synopsis rulings. (T. Ds. 2090, 2135, 2137, 21.">2, 2161.) 
 
 Additional tax. 
 
 Subdivision 2. In addition to the income tax provided under this 
 section (lierein referred to as the normal income tax) there shall be 
 levied, assessed, and collected upon the net income of every individ- 
 ual an additional income tax (herein referred to as the additional 
 tax) of 1 per centum per annum upon the amount by which the total 
 net income exceeds $20,000 and does not exceed $50,000, and 2 per 
 centum per annum upon the amount by which the total net income 
 exceeds $50,0(X) and does not exceed $75,000, 3 per centum per annum 
 upon the amount by which the total net income exceeds $75,000 and 
 does not exceed $100,000, 4 per centum per annum upon the amount 
 by which the total net income exceeds $100,000 and does not exceed 
 $250,000, 5 per centum per annum upon the amount by which the 
 total net income exceeds $250,000 and does not exceed $500,000, and 
 6 per centum per annum upon the amount by which the total net 
 income exceeds $500,000. All the provisions of this section relating- 
 to individuals who are to be chargeable with the normal income tax, 
 so far as they are applicable and are not inconsistent with this sub- 
 division of paragraph A, shall apply to tlie levy, assessment, and 
 collection of the additional tax imposed under this section. 
 
 Personal Tctnrn; regulations. 
 
 Every person subject to this additional tax shall, for the purpose 
 of its assessment and collection, make a personal return of his total 
 net income from all sources, corporate or otherwise, for the preced- 
 ing calendar year, imder rules and regulations to be prescribed by the 
 Commissioner of Internal Revenue and approved by the Secretary 
 of the Treasury. 
 
 Instructions governing preparation of returns by farmers. (T. D. 
 2665.) 
 
 Holding companies; accumulation of profits beyond needs. 
 
 For the purpose of this additional tax the taxable income of any 
 indi\'idual shall embrace the share to which he would be entitled of 
 the gains and profits, if divided or distributed, whether divided or 
 distributed or not, of all corporations, joint-stock companies, or asso- 
 ciations however created or organized, formed, or fraudulently 
 availed of for the purrose. of preventing the imposition of such tax 
 
732 APPENDIX. 
 
 through the medium of permitting such gains and profits to accumu- 
 late instead of being divided or distributed; and the fact that any 
 such corporation, joint-stock company, or association is a mere hold- 
 ing company, or that the gains and profits are permitted to accumu- ■ 
 late beyond the reasonable needs of the business, shall be prima 
 facie evidence of a fraudulent purpose to escape such tax; but the 
 fact that the gains and profits are in any case permitted to accumu- 
 late and become surplus shall not be construed as evidence of a pur- 
 pose to escape the said tax in such case unless the Secretary of the 
 Treasury shall certify that in his opinion such accumulation is un- 
 reasonable for the purposes of the business. 
 
 statement of profits. 
 
 When requested by the Commissioner of Internal Revenue, or any 
 district collector of internal revenue, such corporation, joint-stock 
 company, or association shall forward to him a correct statement of 
 such profits and the names of the individuals who would be entitled 
 to the same if distributed. 
 
 Income defined. 
 
 B. That, subject only to such exemptions and deductions as are 
 hereinafter allowed, the net income of a taxable person shall include 
 gains, profits, and income derived from salaries, wages, or compen- 
 sation for personal service of whatever kind and in whatever form 
 paid, or from professions, vocations, businesses, trade, commerce, or 
 sales, or dealings in property, whether real or personal, growing out 
 of the ownership or use of or interest in real or personal property, 
 also from interest, rent, dividends, securities, or the transaction of 
 any lawful business carried on for gain or profit, or gains or profits 
 and income derived from any source whatever, including the income 
 from but not the value of property acquired by gift, bequest, devise, 
 or descent : 
 
 Alimony not income and not subject to tax. (Gould v. Gould, 245 
 U. S., 151.) 
 
 Purpose of act w.is not to tax income accrued prior to March 1, 1913; 
 income accrued in preceding taxable year excluded. (Southern Pacific 
 1 Co. V. Lowe, 247 U. S., 330; T. D. 2730.) 
 
 Where corporation owns entire stock of subsidiary and is lessee of all 
 its property, maintaining control of subsidiary's money and other prop- 
 erty, dividends of subsidiary declared out of surplus which accrued prior 
 to March 1, 1913, not taxable income of parent corporation. (Id.) 
 
 Taxable status of stock dividends paid on capital stock from current 
 net earnings or established surplus created from earnings of corpora- 
 tions, etc., defined. (T. Ds. 2163, 2274.) 
 
 Under paragraphs B, T>, and G, member of partnership need not 
 include as part of net income that part derived from or through partner- 
 ship which has been received by firm as dividends on stocks owned by 
 it in corporations taxable on their net income. (United States v. Coulby, 
 251 Fed., 982; affirmed, 258 Fed., 27.) 
 
 Under Sixteenth Amendment to Constitution, Congress may tax as in- 
 come, without apportionment, everything that became income in the 
 ordinary sense of the word after adoption of the amendment. (Lynch v. 
 Hornby, 247 U. S., 339; T. D. 2731; Brushaber v. Union Pacific Rail- 
 road, 240 U. S., 1; T. D. 2290.) 
 
 Individual stockholder is subject to additional tax on dividends de- 
 clared and paid by corporation in ordinary course of business after 
 taking effect of act£)^^J^ to]fpyyg^g^^(^rnlngs or from accumulated 
 
APPENDIX. 733 
 
 surplus made up of past earnings or increase in value of corporate 
 assets, notwithstanding surplus accrued to corporation in whole or in 
 part prior to March 1, 1913. (Lynch v. Hornby, 247 U. S., 339; T. D. 
 2731.) 
 
 Act of September 8, 1916, and act of October 3, 1917, in excluding 
 dividends declared out of earnings or profits that accrued prior to 
 March 1, 1913, not intended to be declaratory of the meaning of "divi- 
 dends" in the 1913 act. (Id.) 
 
 Stock dividends declared in 1914 from profits accrued before January 1, 
 1913, do not constitute taxable income to recipients. (Towne v. Eisner, 
 245 U. S., 418; T. D. 2634; reversing 242 Fed., 702; T. D. 2506.) 
 
 Earnings and surplus of subsidiary corporations used as capital prior 
 to January 1, 1913, are not taxable income of holding company when 
 formally transferred to It as dividends. (Gulf Oil Corporation v. Lew- 
 ellyn, 248 U. S., 71; T. D. 2783.) 
 
 " Income " means the flow of capital's service, and is not synonymous 
 with receipts. (United States v. Guggenheim Exploration Co., 238 Fed., 
 231.) 
 
 Dividend declared and paid by going corporation, partly in cash and 
 partly in assets of the corporation, is subject to tax when received by 
 individual taxpayer, although declared from surplus which was in part 
 accumulated before March 1, 1913. (Peabody v. Eisner, 247 U. S., 347; 
 T. D. 2732.) 
 
 Life insurance agent held liable on commissions on renewal premiums 
 on policies issued before act was adopted. (Edwards v. Keith, 231 
 Fed., 110.) 
 
 Liability in connection with quarters, mileage, reimbursement for 
 actual expenses, etc., furnished or paid by Government to officers and 
 employees. (T. D. 2079.) 
 
 Taxability of commissions on renewal premiums for insurance. (T. D. 
 2011.) 
 
 The tax on the product of a mine is not a tax upon property as such 
 because of its ownership, but a true excise levied on the results of 
 business of carrying on mining operations. (Stanton v. Baltic Mining 
 Co., 240 U. S., 103; T. D. 2303.) 
 
 Proceeds o£ life iusnrance policies exempt. 
 
 Provided, That the proceeds of life insurance policies paid upon 
 the death of the person insured or payments made by or credited to 
 the insured, on life insurance, endowment, or annuity contracts, upon 
 the return thereof to the insured at the maturity of the term men- 
 tioned in the contract, or upon surrender of contract, shall not be 
 included as income. 
 
 Deductions. 
 
 That in computing net income for the purpose of the normal tax 
 there shall be allowed as deductions: First, the necessary expenses 
 actually paid in carrying on any business, not including personal, 
 living, or family expenses; second, all interest paid withm the year 
 by a taxable person on indebtedness ; third, all national, State, county, 
 school, and municipal taxes paid within the year, not including those 
 assessed against local benefits; fourth, losses actually sustained dur- 
 ing the year, incurred in trade or arising from fires, storms, or ship- 
 wreck, and not compensated for by insurance or otherwise; fifth, 
 debts due to the taxpayer actually ascertained to be worthless and 
 charged off within the year; sixth, a reasonable allowance for the 
 exhaustion, wear and tear of property arising out of its use or em- 
 ployment in the business, not to exceed, in the case of mines, 5 per 
 centum of the gross value at the mine of the output for the year for 
 which the computation is made, but no deduction shall be made for 
 any amount of expen^^^f^j^^or^g^^TO^I^y or making good the 
 
734 APPE2srMX. 
 
 exhaustion thereof for which an allowance is or has been made: 
 Provided, That no deduction shall be allowed for any amount paid 
 out for new buildings, permanent improrements, or betterments, 
 made to increase the value of any property or estate; seventh, the 
 amount received as dividends upon the stock or from the net earnings 
 of any corporation, joint-stock company, association, or insurance 
 company which is taxable upon its net income as hereinafter pro- 
 vide!; eighth, the amount of income, the tax upon which has been 
 paid or withheld for payment at the source of the income, under the 
 provisions of this section, provided that whenever the tax upon the 
 income of a person is required to be withheld and paid at the source 
 as hereinafter required, if such annual income does not exceed the 
 sum of $3,000 or is not fixed or certain, or is indefinite, or irregular 
 as to amount or time of accrual, the same shall not be deducted in the 
 personal return of such person. 
 
 Depreciation allowed does not include shrinkage in value of stocks, 
 bonds, etc. (T. D. 2005.) 
 
 Loss of value of corporate stock held loss incurred in trade. (Bryce v. 
 Keith, 257 Fed'., 133.) 
 
 " Exhaustion, wear, and tear " contemplate only depreciation of physi- 
 cal property itself. (Cohen v. Lowe, 234 Fed., 474 ; T. D. 2343.) 
 
 Allowance made for depreciation ; no deduction allowed for expense of 
 restoring building. (Id.) 
 
 Designation of losses which are deductible from gross income within n 
 taxable year. (T. D. 1989.) 
 
 ' Instructions and rules for determining what amount is to be allowed 
 as a deduction for loss in a return of income. Depreciation allowed by 
 law does not include shrinkage in value of stocks, bonds, etc. (T. D. 
 2005.) 
 
 Income from farm products and crop-share rentals to be included in 
 the return of income for the year in which sold or exchanged for money 
 or a money equivalent. (T. D. 2153.) 
 
 Bad debts which, if collected, would constitute income in their en- 
 tirety are not deductible in a return of annual net income unless the 
 amount of such items has been entered' on the books of the taxpayer as 
 income and such entry has been made within the year for which such 
 amount is sought to be deducted as a bad debt. (T. D. 2201 ; see T. D. 
 2224. ) 
 
 Depreciation not allowed fiduciaries as a deduction from gross income 
 in cases where no depreciation reserve is maintained, but the amount 
 claimed as a deduction for depreciation is paid to the beneficiary as 
 income. (T. D. 2267.) 
 
 Tax imposed by laws of New York upon transfer of property by wiU or 
 under intestate laws is not deductible in ascertaining net income of 
 legatee or distributee ; it is not a " tax " within the meaning of provision 
 permitting deduction of "all national, State, county, school, and mu- 
 nicipal taxes paid within the year." (Prentiss v. Eisner, 260 Fed., 589; 
 T. D. 2933.) 
 
 Persons residing aliroad. 
 
 The net income from property owned and business carried on in 
 the United States by persons residing elsewhere shall be computed 
 upon the basis prescribed in this paragraph and that part of para- 
 graph Gr of this section relating to the computation of the net income 
 of corporations, joint-stock and insurance companies, organized, 
 created, or existing under the laws of foreign countries, in so far as 
 applicable. 
 
 Interest on State and United States Ibonds to Ibe exclnded. 
 
 That in computing net income under this section there shall be 
 excluded the interest ^a^m^iiSbt/^imsS'M a State or any political 
 
APPENDIX. 735 
 
 subdivision thereof, and upon the obligations of the United States 
 or its possessions ; also the compensation of the present President of 
 the United States during the term for which he has been elected, and 
 of the judges of the supreme and inferior courts of the United States 
 now in office, and the compensation of all officers and employees of a 
 State or any political subdivision thereof except when such compen- 
 sation is paid by the United States Government. 
 
 Interest upon obligations of the United States or its possessions, or of 
 any State, county, city, or any other political subdivision thereof, is not 
 subject to income tax. (T. D. 1892.) 
 
 Special assessment districts created imder the laws of the several States 
 for public purposes, such as the improvement of streets and public high- 
 ways, the provision of sewerage, gas, and light, and the reclamation, 
 drainage, or irrigation of bodies of land, and levee and school districts 
 are held to be political subdivisions of a State. ( T. D. 1946. ) 
 
 Additional exemption in the case of married persons. 
 
 C. That there shall be deducted from the amount ofthe net income 
 of each of said persons, ascertained as provided herein, the sum of 
 $3,000, plus $1,000 additional if the person making the return be a 
 married man with a wife living with him, or plus the sum of $1,000 
 additional if the person making the return be a married woman with 
 a husband living with her ; but in no event shall this additional ex- 
 emption of $1,000 be deducted by both a husband and a wife: Pro- 
 vided^ That only one deduction of $4,000 shall be made from the 
 aggregate income of both husband and wife when living together. 
 
 Regulations regarding the specific deduction relative to the returns of 
 husband and wife. (T. D. 1923.) 
 
 Tim? for computing tax; returns. 
 
 D. The said tax shall be computed upon the remainder of said net 
 income of each person subject thereto, accruing during each preced- 
 ing calendar year ending December thirty -first : Prov^ded^ however^ 
 That for the year ending December thirty-first, nineteen hundred 
 and thirteen, said tax shall be computed on the net income accruing 
 from March first to December thirty-first, nineteen hundred and 
 thirteen, both dates inclusive, after deducting five-sixths only of the 
 specific exemptions and deductions herein provided for. On or be- 
 fore the first day of March, nineteen hundred and fourteen, and the 
 first day of March in each year thereafter, a true and accurate return, 
 under oath or affirmation, shall be made by each person of lawful 
 age, except as hereinafter provided, subject to the tax imposed by 
 this section, and having a net income of $3,000 or over for the tax- 
 able year, to the collector of internal revenue for the district in 
 which such person resides or has his principal place of business, or, 
 in the case of a person residing in a foreign country, in the place 
 where his principal business is carried on within the United States, 
 in such form as the Commissioner of Internal Eevenue, with the ap- 
 proval of the Secretary of the Treasury, shall prescribe, setting forth 
 specifically the gross amount of income from all separate sources 
 and from the total thereof, deducting the aggregate items or ex- 
 penses and allowance herein authorized ; guardians, trustees, execu- 
 tors, administrators, agents, receivers, conservators, and all persons, 
 corporations, or associations acting in anv fiduciary capacity, shall 
 
 ^ Digitized by Microsoft® j f j 
 
736 APPENDIX. 
 
 make and render a return of the net income of the person for whom 
 they act, subject to this tax, coming into their custodj^ or control and 
 management, and be subject to all the provisions of this section which 
 apply to individuals : Provided, That a return made by one of two 
 or more joint guardians, trustees, executors, administrators, agents, 
 receivers, and conservators, or other persons acting in a fiduciary 
 capacity, filed in the district where such person resides, or in the dis- 
 trict where the will or other instrument under which he acts is re- 
 corded, under such regulations as the Secretary of the Treasury may 
 prescribe, shall be a sufficient compliance with the requirements of 
 this paragraph. 
 
 Retroactivity of act to March 1, 1913, a date not prior to adoption of 
 sixteentli amendment to the Constitution, is permissible. (Brushaber v. 
 Union Paeinc Railroad, 240 U. S., 1 T. D. 2290; Lynch r. Hornby, 247 
 U. S., 339; T. D. 2731. 236 Fed., 661, reversed.) 
 
 Where capital assets of corporation increased in value prior to March 
 1, 1913, and a single and final dividend was made in liquidation of entire 
 assets In 1914, without further appreciation or addition to the assets hav- 
 ing occurred, no part of the dividend received by a stockholder is taxable 
 under this act. (Lynch v. Turrish, 227 TJ. S., 221; T. D. 2729.) 
 
 Income of person dying on July 22, 1913, is subject to tax, as the tax is 
 against citizens or residents of the United States personally and not 
 against property. (Brady v, Anderson, 240 U. S., 665; T. D. 2494.) 
 
 Evident purpose of act to refrain from taxing income that accrued 
 prior to March 1, 1913, and to exclude from consideration in making 
 computation of taxable income any income that accrued in the preceding 
 taxable year. (Southern Pacific Co. v. Lowe, 247 U. S., 330; T. D. 2780.) 
 
 Supplemental regulations designating guardians, trustees, executors, 
 administrators, agents, etc., as the " source " for purpose of collecting 
 income tax and as to making annual and list returns and withholding 
 tax. (T. D. 1906.) 
 
 Individuals whose net income from March 1 to December 31, 1913, both 
 dates inclusive, is $2,500 or more must make returns of annual net 
 income for 1913. (T. D. 1934.) 
 
 Instructions to collectors relative to fiduciaries and returns to be made 
 by them on Form 1041. (T. D. 1943.) 
 
 Extending T. D. 1945 to cover returns made by fiduciaries in their 
 fiduciary capacity. (T. D. 1947.) 
 
 Time for filing returns of income and penalties in connection there- 
 with. (T. D. 1950.) 
 
 Firms, companies, corporations, etc., to Trlthhold tax and make return. 
 
 And also all persons, firms, companies, copartnerships, corpora- 
 tions, joint-stock companies or associations, and insurance companies, 
 except as hereinafter provided, in whatever capacity acting, having 
 the control, receipt, disposal, or payment of fixed or determinable 
 annual or periodical gains, profits, and income of another person 
 subject to- tax, shall in behalf of such person deduct and withhold 
 from the payment an amount equivalent to the normal income tax 
 upon the same and make and render a return, as aforesaid, but 
 separate and distinct, of the portion of the income of each person 
 from which the normal tax has been thus withheld, and containing 
 also the name and address of such person or stating that the name 
 and address or the address, as the case may be, are unknown : Pro- 
 vided, That the provision requiring the normal tax of individuals to 
 be withheld at the source of the income shall not be construed to 
 require any of such tax to be withheld prior to the first day of No- 
 vember, nineteen hundred and thirteen: Provided further, That in 
 Digitized by Microsoft® 
 
APPENDIX, 737 
 
 either case above mentioned no return of income not exceeding $3,000 
 shall be required. 
 
 Regulations regarding deduction of income tax at source on interest 
 maturing on bonds, notes, and similar obligations of coi-porations, joint- 
 stock companies or associations, and insurance companies. (T. D. 1887.) 
 
 Forms of certificates of ownership. (T. Ds. 1976, 2325.) 
 
 How tax shall be collected when such notes before their maturity shall 
 have been sold by the payee or recipient or shall have been discounted 
 with banks. (T. D. 1891.) 
 
 Income tax on the interest on bank deposits and bank certificates of 
 deposit not to be withheld at the source. (T. D. 1893.) 
 
 Collection at the source of income tax from certain municipal district 
 or local bonds and other obligations. (T. D. 1922.) 
 
 Amendment of regulations requiring return and payment of tax by 
 fiduciaries under trust estates. (T. Ds. 2231, 2289.) 
 
 Partnership tax. 
 
 Provided further, That any persons carrying^ on business in part- 
 nership shall be liable for income tax only in their individual capac- 
 ity, and the share of the profits of a partnership to which any taxable 
 partner vFOuld be entitled if the same were divided, "whether divided 
 or otherwise, shall be returned for taxation and the tax paid, under 
 the provisions of this section, and any such firm, when requested by 
 the Commissioner of Internal Eevenue, or any district or collector, 
 shall forward to him a correct statement of such profits and the 
 names of the individuals who would be entitled to the same if dis- 
 tributed. 
 
 Supplemental regulations relative to partnerships. (T. D. 1905.) 
 Partnerships are not subject to income tax, but are required to file 
 
 certificates of ownership of bonds, etc., in connection with coupon and 
 
 registered interest payments to prevent withholding of their income at 
 
 the source. (T. D. 1957.) 
 
 Income received from partnership can not be traced to source beyond 
 
 partnership for purpose of claiming individual exemption. (T. D. 2337.) 
 
 Betarn not required of income from diTidends of taxable corporations. 
 
 Prayided further, That persons liable for the normal income tax 
 only, on their own account or in behalf of another, shall not be re- 
 quired to make return of the income derived from dividends on the 
 capital stock or from the net earnings of corporations, joint-stock 
 companies or associations, and insurance companies taxable upon 
 their net income as hereinafter provided. Any person for whom 
 return has been made and the tax paid, or to be paid as aforesaid, 
 shall not be required to make a return unless such person has other 
 net income, but only one deduction of $3,000 shall be made in the case 
 of any such person. The collector or deputy collector shall require 
 every list to be verified by the oath or affirmation of the party ren- 
 dering it. 
 
 Regulations relative to exclusion of income derived from dividends or 
 net earnings of corporations, joint-stock companies or associations, and 
 insurance companies by persons subject to the normal tax only in comput- 
 ing their net income for the taxable year. (T. D. 1945.) 
 
 Taxable status of dividends paid on the capital stock from the current 
 net earnings or established surplus created from the net earnings of 
 corporations, joint-stock companies or associations, and insurance com- 
 panies taxable upon their net Income. (T. D. 2048.) 
 
 140184°— 20 — 47 Digitized by Microsoft® 
 
7S8 APPENDIX. 
 
 TTndcrstatcmcnts ; appeal from collector. 
 
 If the collector or deputy collector have reason to believe that the 
 amount of any income returned is understated, he shall give due 
 notice to the person making the return to show cause why the amount 
 of the return should not be increased, and upon proof of the amount 
 understated may increase the same accordingly. If dissatisfied with 
 the decision of the collector, such person may submit the case, with 
 all the papers, to the Commissioner of Internal Eevenue for his de- 
 cision, and may furnish sworn testimony of witnesses to prove any 
 relevant facts. 
 
 Assesments, notice of, payment of; return by Commissioner irlthin three years. 
 
 E. That all assessments shall be made by the Commissioner of 
 Internal Revenue and all persons shall be notified of the amount for 
 which they are respectively liable on or before the first day of June 
 of each successive year, and said assessments shall be paid on or before 
 the thirtieth day of June, except in cases of refusal or neglect to make 
 such return and in cases of false or fraudulent returns, in which cases 
 the Commissioner of Internal Revenue shallj upon the discovery 
 thereof, at any time within three years after said return is due, make 
 a return upon information obtained as provided for in this section or 
 by existing law, and the assessment made by the Commissioner of 
 Internal Revenue thereon shall be paid by such person or persons 
 immediately upon notification of the amount of such assessment. 
 
 Assessment of tax for 1913 in May, 1915, -was in time if return was 
 " false," which does not mean " fraudulent," but merely untrue or incor- 
 rect. (Woods V. Lewellyn, 252 Fed., 106.) 
 
 FiTO per cent penalty and interest. 
 
 And to any sum or sums due and unpaid after the thirtieth day of 
 June in any year, and for ten days after notice and demand thereof 
 by the collector, there shall be added the sum of 5 per centum on the 
 amount of tax unpaid, and interest at the rate of 1 per centum per 
 month upon said tax from the time the same became due, except from 
 the estates of insane, deceased, or insolvent persons. 
 
 See T. D. 2679, repealing T. D. 2028. 
 
 Demand and notice held to apply in case of delinquents where their 
 returns are filed prior to date on which taxes are to be paid in ordinary 
 course. (T. D. 2003.) 
 
 Notice of and demand for assessed taxes to be issued promptly to secure 
 tax lien, penalty, and interest in case of nonpayment. (T. D. 1995.) 
 
 Collection of tax at the source. 
 
 All personSj firms, copartnerships, companies, corporations, joint- 
 stock companias or associations, and insurance companies, in what- 
 Qver capacity acting, including lessees or mortgagors of real or per- 
 sonal property, trustees acting in any trust capacity, executors, ad- 
 ministrators, agents, receivers, conservators, employers, and all offi- 
 cers and employees of the United States having the control, receipt, 
 custody, disposal, or payment of interest, rent, salaries, wages, pre- 
 miums, annuities, compensation, remuneration, emoluments, or other 
 fixed or determinable annual gains, profits, and income of another 
 person, exceeding $3,000 for any taxable year, other than dividends 
 Digitized by IVIicroson® 
 
APPENDIX. 739 
 
 on capital stock, or from the net earnings of corporations and joint- 
 stock companies or associations subject to like tax, who are required 
 to make and render a return in behalf of another, as provided herein, 
 to the collector of his, her, or its district, are hereby authorized and 
 required to deduct and withhold from such amiual gains, profits, and 
 income such sum as will be sufficient to pay the normal tax imposed 
 thereon by this section, and shall pay to the officer of the United 
 States Government authorized to receive the same ; and they are each 
 hereby made personally liable for such tax. In all cases where the 
 income tax of a person is withheld and deducted and paid or to be 
 paid at the source, as aforesaid, such person shall not receive the ben- 
 efit of the deduction and exemption allowed in paragraph C of this 
 section except by an application for refund of the tax unless he shall, 
 not less than thirty days prior to the day on which the return of his 
 income is due, file with the person Avho is required to withhold and 
 pay tax for him, a signed notice in writing claiming the benefit of 
 such exemption, and thereupon no tax shall bei withheld upon the 
 amount of such exemption. 
 
 Regulations regarding deduction of income tax at source on interest 
 maturing on bonds, notes, and similar obligations of corporations, joint- 
 stock companies or associations, and insurance companies. (T. D. 1887.) 
 
 Provisions for collecting tax at source do not deny due process of law. 
 (Brushaber v. Union Pacific Railroad, 240 U. S., 1 ; T. D. 2290.) 
 
 Regulations regarding the deduction of the income tax at the source 
 on income other than interest maturing on bonds, notes, and other simi- 
 lar obligations of corporations, joint-stoclj companies or associations, 
 and insurance companies. (T. D. 1890.) 
 
 How tax shall be collected when such notes before their maturity- 
 shall have been sold bv the payee or recipient, or shall have been dis- 
 counted with banks. (T. D. 1891.) 
 
 Income tax ruling as to how and by whom certificates of ownership 
 may be signed in cases wliere bonds of corporations, joint-stock compa- 
 nies or associations, and insurance companies are owned by nonresident 
 aliens. (T. D. 1894.) 
 
 Regulations permitting the substitution, under certain conditions, of 
 the certificates of banks, bankers, or other collecting agents, for the 
 certificates of the owners required to be attached to interest coupons 
 when presented for collection, under income tax regulations of October 
 25, 1913, and those supplementary thereto. (T. D. 1903.) 
 
 Supplemental regulations relative to duly authorized agent's authority 
 to sign certificates of ownership which accompany coupons or registered 
 interest orders when presented for collection. (T. D. 1904.) 
 
 Supplemental regulations designating guardians, trustees, executors, 
 administrators, agents, etc., as the " source " for purpose of collecting 
 income tax and as to making annual and list returns and withholding 
 tax. (T. D. 1906.) 
 
 Supplemental instructions as to acceptance of certificate Form 1000 
 as originally prescribed in regulations of October 25, 1913; and the 
 original and amended Form 1000 as it has been adapted to the use of 
 fiduciary agents ; and certificate Forms 1001, 1003, and 1004, as they 
 have been adapted to the use of foreign organizations and partnerships. 
 (T. D. 1907.) 
 
 Supplemental regullations prescribing forms of certificates to be at- 
 tached to interest coupons In cases where the collecting agent's certificate 
 is substituted for the certificate of the owners. (T. D. 1915.) 
 
 Certificates of ownership heretofore executed, or which may hereafter 
 be executed, by the owners of bonds, etc., or their duly authorized agents, 
 need not be signed with the full Christian name of the owner or agent, 
 but the said owner or agent may use his ordinary or usual business 
 signature. (T. D. 1920.) 
 
 Digitized by Microsoft® 
 
740 APPENDIX. 
 
 False statement; penalty. 
 
 Provided, That if any person, for the purpose of obtaining any 
 allowance or reduction by virtue of a claim for such exemption, either 
 for himself or for any other person, knowingly makes any false state- 
 ment or false or fraudulent representation, he shall be liable to a pen- 
 alty of $300 ; nor shall any person under the foregoing conditions be 
 allowed the iDenefit of any deduction provided for in subsection B of 
 this section unless he. shall, not less than thirty days prior to the day 
 on which the return of his income is due, either file with the person 
 who is required to withhold and pay tax for him a true and correct 
 return of his annual gains, profits, and income from all other sources, 
 and also the deductions asked for, and the showing thus made shall 
 then become a part of the return to be made in his behalf by the 
 person required to withhold and pay the tax, or likewise make appli- 
 cation for deductions to the collector of the district in which return 
 is made or to be made for him. 
 
 Returns for minors, insane persons, and absentees. 
 
 Provided further. That if such person is a minor or an insane per- 
 son, or is absent from the United States, or is unable owing to serious 
 illness to make the return and application above provided for, the 
 return and application may be made for him or her by the person 
 required to withhold and pay the tax, he making oath under the 
 penalties of this act that he has sufficient knowledge of the affairs 
 and property of his beneficiary to enable him to make a full and 
 complete return for him or her, and that the return and application 
 made by him are full and complete. 
 
 Tax to he withheld from interest on honds. 
 
 Provided further. That the amount of the normal tax hereinbefore 
 imposed shall be deducted and withheld from fixed and determi- 
 nable annual gains, profits, and income derived from interest upon 
 bonds and mortgages, or deeds of trust or other similar obligations 
 of corporations, joint-stock companies or associations, and insurance 
 companies, whether payable annually or at shorter or longer periods, 
 although such interest does not amount to $3,000, subject to the pro- 
 visions of this section requiring the tax to be withheld at the source 
 and deducted from annual income and paid to the Government; 
 
 '^Vithholdlng tax from interest on foreign bonds. 
 
 and likewise the amount of such tax shall be deducted and with- 
 held from coupons, checks, or bills of exchange for or in payment 
 of interest upon bonds of foreign countries and upon foreign mort- 
 gages or like obligations (not payable in the United States), and 
 also from coupons, checks, or bills of exchange for or in payment of 
 any dividends upon the stock or interest upon the obligations of 
 foreign corporations, associations, and insurance companies engaged 
 in business in foreign countries; and the tax in each case shall be 
 withheld and deducted for and in behalf of any person subject to 
 the tax hereinbefore imposed, although such interest, dividends, or 
 other compensation does not exceed $3,000, by any banker or person 
 Avho shall sell or otherwise realize coupons, checks, or bills of ex- 
 Digitized by Microsoft® 
 
APPESfDIX. 741 
 
 change drawn or made in payment of any such interest or dividends 
 (not payable in the United States), and any person who shall obtain 
 payment (not in the United States), in behalf of another of such 
 dividends and interest by means' of coupons, checks, or bills of ex- 
 change, and also any dealer in such coupons who shall purchase the 
 same for any such dividends or interest (not payable in the United 
 States), otherwise than from a banker or another dealer in such 
 coupons ; but in each case the benefit of the exemption and the deduc- 
 tion allowable under this section may be had by complying with the 
 foregoing provisions of this paragraph. 
 
 Regulations. (T. D. 1887.) 
 
 In all cases where a temporary .certificate, Form 1005, was attached 
 to interest coupons as provided by T. D. 1887, income tax will be assessed 
 on amount of Interest represented by such certificate unless th6 debtor 
 corporation shall furnish satisfactory evidence that the owner of the 
 coupons is not subject to withholding at source or not subject to the in- 
 come tax. (T. D. 2190.) 
 
 License to engage in Ibnsiness of collecting foreign payments. 
 
 All persons, firms, or corporations undertaking as a matter of 
 business or for profit the collection of foreign payments of such 
 interest or dividends by means of coupons, checks, or bills of ex- 
 change shall obtain a license from the Commissioner of Internal 
 Eevenue, and shall be subject to such regulations enabling the Gov- 
 ernment to ascertain and verify the due withholding and payment 
 of the income tax required to be withheld and paid as the Commis- 
 sioner of Internal Eevenue, with the approval of the Secretary of 
 the Treasury, shall prescribe; and any person who shall knowingly 
 undertake to collect such payments as aforesaid without having ob- 
 tained a license therefor, or without complying with such regula- 
 tions, shall be deemed guilty of a misdemeanor and for each offense 
 be fined in a sum not exceeding $5,000, or imprisoned for a term not 
 exceeding one year, or both, in the discretion of the court. 
 
 License required for collection of income received from foreign coun- 
 tries. Supplemental regulations as to making application, filing bond, 
 and issuing license to collecting agencies of income from foreign coun- 
 tries. (T. D. 1909.) 
 
 Contracts; returns; regulations. 
 
 Nothing in this section shall be construed to release a taxable per- 
 son from liability for income tax, nor shall any contract entered into 
 after this Act takes effect be valid in regard to any Federal income 
 tax imposed upon a person liable to such payment. 
 
 The tax herein imposed upon annual gains, profits, and income 
 not falling under the foregoing and not returned and paid by virtue 
 of the foregoing shall be assessed by personal return under rules 
 and regulations to be prescribed by the Commissioner of Internal 
 Eevenue and approved by the Secretary of the Treasury. 
 
 Deduction at source applies to normal tax only. 
 
 The provisions of this section relating to the deduction and pay- 
 ment of the tax at the source of income shall only apply to the nor- 
 mal tax hereinbefore imposed upon individuals. 
 Digitized by Microsoft® 
 
742 APPENDIX. 
 
 Penalty for neglect or refusal to make retarn or for making false or frandnlent return. 
 
 _ F. That if any person, corporation, joint-stock company, associa- 
 tion, or insurance company liable to make the return or pay the tax 
 aforesaid shall refuse or neglect to make a return at the time or 
 times hereinbefore specified in each year, such person shall be liable 
 ' to a penalty of not less than $20 nor more than $1,000. Any person 
 or any officer of any corporation required by law to make, render, 
 sign, or verify any return who makes any false or fraudulent return 
 or statement with intent to defeat or evade the assessment required 
 by this section to be made shall be guilty of a misdemeanor, and shall 
 be fined not exceeding $2,000 or be imprisoned not exceeding one 
 year, or both, at the discretion of the court, with the costs of prose- 
 cution. 
 
 Tax on corporations. 
 
 G. (a) That the normal tax hereinbefore imposed upon indi- 
 viduals likewise shall be levied, assessed, and paid annually upon the 
 entire net income arising or accruing from all sources during the pre- 
 ceding calendar year to every corporation, joint-stock company or 
 association, and every insurance company, organized in the United 
 States, no matter how created or organized, not including partner- 
 ships; but if organized, authorized, or existing tinder the laws of 
 any foreign country, then upon the amount of net income accruing 
 from business transacted and capital invested within the United 
 States during such year. 
 
 ■\That acts of foreisn company constitute doing business in United 
 States. (Laurentirte Co. (Ltd.) v. Durey, 231 Fed., 223; T. D. 2346.) 
 
 AVhere trustees hold shares of stock and real estate subject to lease and 
 do no business other than collectins dividends and rents, trust not taxa- 
 ble as joint-stoclv association, but trustee and cestui que trust are to be 
 treated as fiduciaries and beneficiaries. (Crocker v. Malley, 249 U. S., 223 ; 
 T. D. 2816.) 
 
 Partnership formed in Hawaii by several corporations not treated as 
 joint-stocli association. (Haiku Sugar Co. v. Johnstone, 249 Fed., 103.) 
 
 Dividends paid by lessee corporation directly to stockholders of lessor 
 corporation constitutes income of lessor. (West End Street Railway Co. 
 V. Malley, 246 Fed., 625; T. D. 2620.) 
 
 Annual dividend on stock of another corporation subject to tax for 
 calendar year in \vhich declared and paid, although half of profits out 
 of which paid accrued prior to passage of 1913 act. (Skinner r. Union 
 Pacific Coal Co., 249 Fed., 1.52.) 
 
 Corporation liable to tax, thougli engaged in no business, deriving all 
 income as rent from its property. (Rensselaer & Saratoga Railroad Co. 
 V. Irwin, 249 Fed., 726.) 
 
 Railroad company leasing property for life of franchise, rental to be 
 paid as interest and fixed dividend direct to stockholders is subject to tax 
 on such rental. (Northern Railroad Co. of New Jersey v. Lowe, 2-50 
 Fed., 856.) 
 
 Bonds of foreign corporations payable, as to interest, wholly within 
 United States or within or without United States, at option of owner of 
 bonds, to be treated for income-tax purposes as domestic bonds when 
 accompanied by certificates of ownership properly executed. (T. D. 
 1992.) 
 
 Cooperative dairies and like organizations held not exempt. (T. D. 
 1996.) 
 
 Definition of "foreign corporation " and " fiscal agent " as used in T. D. 
 1992, and further explanation of handling collection of income from bonds 
 of such foreign corporations and foreign countries having fiscal agents in 
 the United States. (T. D. 2006.) 
 
 Digitized by Microsoft® 
 
APPENDIX. 743 
 
 Synopsis of rulings on questions relating to income tax. (T. Ds. 2090, 
 2161.) 
 
 Receivers are not object to tax on net earnings of an insolvent rail- 
 road operated by them. (Equitable Trust Co. of N. Y. v. Western Pac. 
 Ry. Co., 236 Fed. 813.) 
 
 Organizations exempt. 
 
 Provided, however, That nothing in this section shall apply to 
 labor, agricultural, or horticultural organizations, or to mutual sav- 
 ings banks not having a capital stock represented by shares, or to 
 fraternal beneficiary societies, orders, or associations operating under 
 the lodge sjstem or for the exclusive benefit of the nieniljers of a 
 fraternity itself operating under the lodge system, and providing 
 for the j)ayment of life, sick, accident, and other benefits to the mem- 
 bers of such societies, orders, or associations and dependents of such 
 members, nor to domestic building and loan associations, nor to ceme- 
 tery companies, organized and operated exclusively for tlie mutual 
 benefit of their members, nor to any corporation or association or- 
 ganized and operated exclusively for religious, charitable, scientific, 
 or educational purposes, no part of the net income of ■which inures 
 to the benefit of any private stockholder or individual, nor to busi- 
 ness leagues, nor to chambers of commerce or boards of trade, not 
 organized for profit or no part of the net income of which inures to 
 the benefit of the private stockholder or individual ; nor to any civic 
 league or organization not organized for profit, but operated ex- 
 clusively for the promotion of social welfare. 
 
 District court has jurisdiction of action by stocldiolder against cor- 
 poration to enjoin voluntary payment of tax on ground of unconstitu- 
 tionality. ( Stanton v. Baltic Mining Co., 240 U. S., 103 ; T. D. 2303. ) 
 
 Mutual telephone companies, mutual insurance companies, and like 
 organizations whose status, under the law, is not dependent upon whether 
 or not they are organized for profit, and not being specifically enumerated 
 as exempt, must make returns of annual net income. (T. D. 1933.) 
 
 Organizations, etc., exempted by first proviso of paragraph G from 
 payment of income tax, are not subject to provisions of income-tax law as 
 withholding agents. (T. D. 1967.) 
 
 Cooperative dairies and like organizations held not exempt. (T. D. 
 1996.) 
 
 Income derlTed from public utility or gorornmental function. 
 
 Provided further, That there shall not be taxed under this section 
 any income derived from any public utility or from the exercise of 
 any essential governmental function accruing to any State, Territory, 
 or the District of Columbia, or any political subdivision of a State, 
 Territory, or the District of Columbia, nor any income accruing to 
 the government of the Philippine Islands or Porto Eico, or of any 
 political subdivision of the Philippine Islands or Porto Eico : Pro- 
 vided, That whenever any State, Territory, or the District of Colum- 
 bia, or any political subdivision of a State or Territory, has, prior 
 to the passage of this act, entered in good faith into a contract with 
 any person or corporation the object and purposes of which is to ac- 
 quire, construct, operate, or maintain a public utility, no tax shall be 
 levied under the provisions of this act upon the income derived from 
 the operation of such public utility, so far as the payment thereof 
 will impose a loss or burden upon such State, Territory, or the Dis- 
 trict of Columbia, or a political subdivision of a State or Territory; 
 utgitized by Microsoft® 
 
744 APPENDIX, 
 
 but this provision is not intended to confer upon such person or cor- 
 poration any financial gain or exemption or to relieve such person 
 or corporation from the payment of a tax as provided for in this sec- 
 tion upon the part or portion of the said income to which such person 
 or corporation shall be entitled under such contract. 
 
 Irrigation and reclamation assessment districts are not political sub- 
 divisions of the State nor are tliey public utilities exercising any es- 
 sential governmental functions accruing to any State or Territory, 
 within the meaning of the law; interest or income from bonds or other 
 obligations of such districts is not exempt from the Income tax. (T. D. 
 1910. ) 
 
 SedacUons anowcd. 
 
 (b) Such net income shall be ascertained by deducting from the 
 gross amount of tlie income of such corporation, joint-stock company 
 or association, or insurance company, received vrithin the year from 
 all sources, (first) all the ordinary and necessary expenses paid 
 within the year in the maintenance and operation of its business and 
 properties, including rentals or other payments required to be made 
 as a condition to the continued use or possession of property; (sec- 
 ond) all losses actually sustained within the year and not compen- 
 sated by insurance or otherwise, including a reasonable allowance for 
 depreciation-by use, wear and tear of property, if any ; and in the case 
 of mines a reasonable allowance for depletion of ores and all other 
 natural deposits, not to exceed 5 per centum of the gross value at the 
 mine of the output for the year for which the computation is made ; and 
 in case of insurance companies the net addition, if any, required by 
 law to be made within the year to reserve funds and the sums other 
 than dividends paid within the year on policy and annuity contracts. 
 
 Depreciation allowed by law does not include shrinkage in value of 
 stocks, bonds, etc. (T. D. 2005.) 
 
 Xime of the cash dividends paid by a life insurance company to its 
 policy holders which represent redundancies in previous premium pay- 
 ments are deductible from gross income as " sums other than dividends 
 paid within the year on policy * * * contracts." (Lederer v. Penn 
 Blutual Life Insurance Co., 258 Fed.. 81; T. D. 2899.) 
 
 Tax is not equivalent to one on gross product of mines, owing to inade- 
 quacy of allowance for depreciation of ore body, but is true excise levied 
 on result of business of carrying on mining operations. (Stanton v. Bal- 
 tic Mining Co., 240 U. S., 103; T. D. 2303.) 
 
 Istructions and rules for determining what amount is to be allowed as a 
 deduction for loss in a return of income. Depreciation allowed by law 
 does not include shrinkage in value of stocks, bonds, etc. (T. D. 2005.) 
 
 Guin or loss resulting from the sale of capital assets and apportioned 
 to the years subsequent to January 1, 1909, should be increased or de- 
 creased' accordingly as there was gain or loss by the amount of depre- 
 ciation charged off since January 1, 1909, and not used to make good 
 such depreciation. (T. D. 2077.) 
 
 Mutual fire Insurance companies; premiiim deposits. 
 
 Provided, That mutual fire insurance companies requiring their 
 members to make premium deposits to provide for losses and ex- 
 penses shall not return as income any portion of the premium de- 
 posits returned to their policyholders, but shall return as taxable 
 incoiue all income received by them from all other sources plus such 
 portions of the premium deposits as are retained by the companies 
 for purposes other than the payment of losses and expenses and rein- 
 surance reserves. Digitized by Microsoft® 
 
APPENDIX. 745 
 
 Hotual mnrine Insurance companies; life Insnrance companies. 
 
 Provided further^ That mutual marine insurance companies shall 
 include in their return of gross income gross premiums collected and 
 received by them less amounts paid for reinsurance, but shall be 
 entitled to include in deductions from gross income amounts repaid 
 to policyholders on account of premiums previously paid by them and 
 interest paid upon such amounts between the ascertainment thereof 
 and the payment thereof, and life insurance companies shall not in-~ 
 elude as income in any year such portion of any actual premium 
 received from any individual policyholder as shall have been paid 
 back or credited to such individual policyholder, or treated as an 
 abatement of premium of such individual policyholder, within such 
 year. 
 
 Life insurance company may not exclude from its total income, for 
 purpose of ascertaining gross income, any dividends paid or credited to 
 policyholders from whom it did not receive any premium during the 
 year ; as to policyholders from whom premiums were received it may 
 exclude only such part of the dividends paid as did not exceed amount 
 received from them, respectively, by way of premiums. (Lederer v. 
 Penn Mutual Life Insurance Co., 258 Fed., 81; T. D. 2899.) 
 
 (Third) The amount of interest accrued and paid within the 
 year on its indebtedness to an amount of such indebtedness not ex- 
 ceeding one-half of the sum of its interest-bearing indebtedness and 
 its paid-up capital stock outstanding at the close of the year, or if 
 no capital stock, the amount of interest paid within the year on an 
 amount of its indebtedness not exceeding the amount of capital 
 employed in the business at the close of the year : Provided, That in 
 case of indebtedness wholly secured by collateral the subject of sale 
 in ordinary business of such corporation, joint-stock company, or 
 association, the total interest secured and paid by such company, 
 corporation, or association within the year on any such indebtedness 
 may be deducted as a part of its expense of doing business : Provided 
 further. That in the case of bonds or other indebtedness, which have 
 been issued with a guaranty that the interest payable thereon shall 
 be free from taxation, no deduction for the payment of the tax 
 herein imposed shall be allowed ; and in the case of a bank, banking 
 association, loan or trust company, interest paid within the year on 
 deposits or on moneys received for investment and secured by in- 
 terest-bearing certificates of indebtedness issued by such bank, bank- 
 ing association, loan or trust company; (fourth) all sunis paid by 
 it within the year for taxes imposed under the authority of the 
 United States or of any State or Territory thereof, or imposed by the 
 Government of any foreign country. 
 
 Corporations are allowed by law to deduct interest actually accrued 
 and paid within the year on an amount not in excess of paid-up capital 
 stock outstanding at the close of the year plus one-half the interest- 
 bearing indebtedness then also outstanding. (T. D. 1960.) 
 
 Interest paid on indebtedness wholly secured by collateral the subject 
 of sale in the ordinary business of a corporation may be deducted as a 
 part of Its expenses of doing business. (T. D. 1993.) 
 
 Interest paid on mortgage indebtedness not assumed by corporation is 
 deductible as payment required to be made as condition to continued use 
 or possession of property. (T. D. 2787.) 
 
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746 APPENDIX. 
 
 Foreign corporations doing business In United States; deductions allowed. 
 
 Provided, That in the case of a corporation, joint-stock company 
 or association, or insurance company, organized, authorized, or exist- 
 ing under the laws of any foreign country, such net income shall be 
 ascertained by deducting from the gross amount of its income ac- 
 crued within the year from business transacted and capital invested 
 within the United States, (first) all the ordinary and necessary ex- 
 penses actually paid within the year out of earnings in the mainte- 
 nance and operation of its business and property within the United 
 States, including rentals or other payments required to be made as 
 a condition to the continued use or possession of property; (second) 
 all losses actually sustained within the year in business conducted 
 by it within the United States and not compensated by insurance or 
 otherwise, including a reasonable allowance for depreciation by nse, 
 wear and tear of property, if any, and in the case of mines a reason- 
 able allowance for depletion of ores and all other natural deposits, 
 not to exceed 5 per centum of the gross value at the mine of the out- 
 put for the year for which the computation is made ; and in case of 
 insurance companies the net addition, if any, required by law to be 
 made within the year to reserve funds and the sums other than divi- 
 dends paid within the year on policy and annuity contracts : 
 
 Instructions and rules for determining what amount is to be allowed as 
 a deduction for loss in a return of Income. Depreciation allowed by law 
 does not include shrinkage in value of stocks, bonds, etc. (T. D. 2005.) 
 
 Provided further, That mutual fire insurance companies requir- 
 ing their members to make premium deposits to provide for losses 
 and expenses shall not return as income any portion of the premium 
 deposits returned to their policyholders, but shall return as taxable 
 income all income received by them from all other sources plus such 
 portions of the premium deposits as are retained by the companies 
 for purposes other than the payment of losses and expenses and 
 reinsurance reserves: Provided further, That mutual marine insur- 
 ance companies shall include in their return of gross income gross 
 premiums collected and received by them less amounts paid for rein- 
 surance, but shall be entitled to include in deductions from gross 
 income amounts repaid to policyholders on account of premiums 
 previously paid by them, and interest paid upon such amounts be- 
 tween the ascertainment thereof and the payment thereof and life 
 insurance companies shall not include as income in any year such 
 portion of any actual premium received from any individual policy- 
 holder as shall have been paid back or credited to such individual 
 policyholder, or treated as an abatement of premium of such indi- 
 vidual policyholder, within such year. 
 
 (Third) the amount of interest accrued and paid within the year 
 on its indebtedness to an amount of such indebtedness not exceed- 
 ing the proportion of one-half of the sum of its interest bearing 
 indebtedness and its paid-np capital stock outstanding at the close 
 of the year, or if no capital stock, the capital employed in the busi- 
 ness at the close of the year which the gross amount of its income 
 for the year from business transacted and capital invested within 
 the United States bears to the gross amount of its income derived 
 from all sources within and without the United States: Provided, 
 That in the case of bonds or other indebtedness which have been 
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APPENDIX. 747 
 
 issued with a guaranty that the interest payable thereon shall be 
 free from taxation, no deduction for the payment of the tax herein 
 imposed shall be allowed; (fourth) all sums paid by it within the 
 3^ear for taxes imposed under the authority of the United States or 
 of any State or Territory thereof or the District of Columbia. 
 
 Assessment iusurance companies. 
 
 In the case of assessment insurance companies, whether domestic 
 or foreign, the actual deposit of sums with State or Territorial 
 officers, pursuant to law, as additions to guarantee or reserve funds 
 shall be treated as being payments required by law to reserve fimds. 
 
 Tax; how compntod; calendar year. 
 
 (c) The tax herein imposed shall be computed upon its entire net 
 income accrued within each preceding calendar year ending Decem- 
 ber thirty-first : Provided, how&ver, That for the year ending Decem- 
 ber thirty-first, nineteen hundred and thirteen, said tax shall be im- 
 posed upon its entire net income accrued within that portion of said 
 year from March firet to December thirty -first, both dates inclusive, 
 to be ascertained by taking five-sixths of its entire net income for 
 said calendar year: Provided further, That any corporation, joint- 
 stock company or association, or insurance company subject to this 
 tax may designate the last day of any month in the year as the day 
 of the closing of its fiscal year and shall be entitled to have the tax 
 paj'able by it computed upon the basis of the net income ascertained 
 "as herein provided for the year ending on the day so designated in 
 the year preceding the date of assessment instead of upon the basis 
 of the net income for the calendar year preceding the date of assess- 
 ment; and it shall give notice of the day it has thus designated as 
 the closing of its fiscal year to the collector of the district in which 
 its principal business office is located at any time not less than thirty 
 days prior to the date upon which its annual return shall be filed. 
 
 Company must report in full total sums received in cash, both amounts 
 received at home office and those paid to its la^^diul agencies during 
 calendar year ; only net addition to reserve funds required by State 
 statute is deductable. (Maryland Casualty Co. v. United States, 52 
 Ct. CIS., 201; T. D. 2451.) 
 
 Corporation owning all the stock in subsidiary and leasing all its 
 property, controlling and managing subsidiary's property, dividends of 
 subsidiary declared out of surplus which accrued prior to March 1, 
 1913, are not taxable income of the parent corporation. (Southern 
 Pacific Co. V. Lowe, 247 U. S., 330; T. D. 2730.) 
 
 Failure to give notice of close of fiscal year at least thirty days prior 
 to March 1, or to make return for preceding calendar year on or before 
 March 1, renders corporations liable to additional tax and penalty. 
 (T. D. 2001; see T. D. 2029.) 
 
 Beturns, date of nmking; requirements. 
 
 All corporations, joint-stock companies or associations, and insur- 
 ance companies subject to the tax herein imposed, computing taxes 
 upon the income of the calendar year, shall, on or before the first day 
 of March, nineteen hundred and fourteen, and the first day of March 
 in each year thereafter, and all corporations, joint-stock companies 
 or associations, and insurance companies, computing taxes upon the 
 income of a fiscal year which it may designate in the manner herein- 
 before provided, shall render a like return within sixty days after the 
 Digitized by Microsoft® 
 
748 APPENDIX. 
 
 close of its said fiscal year, and within sixty days after the close of 
 its fiscal year in each year thereafter, or in the case of a corporation, 
 joint-stock company or association, or insurance company, organized 
 or existing under the laws of a foreign country, in the place where its 
 principal business is located within the United States, in such form 
 as the Commissioner of Internal Kevenue, with the approval of the 
 Secretary of the Treasury, shall prescribe, shall render a true and 
 accurate return under oath or affirmation of its president, vice presi- 
 dent, or other principal officer, and its treasurer or assistant treasurer, 
 to the collector of internal revenue for the district in which it has 
 its principal place of business, setting forth (first) the total amount 
 of its paid-up capital stock outstanding, or if no capital stock, its 
 capital employed in business, at the close of the year; (second) the 
 total amount of its bonded and other indebtedness at the close of the 
 year; (third) the gross amount of its income, received during such 
 year from all sources, and if organized under the laws of a foreign 
 country the gross amount of its income received within the year from 
 business transacted and capital invested within the United States; 
 (fourth) the total amount of all its ordinary and necessary expenses 
 paid out of earnings in the maintenance and operation of the busi- 
 ness and properties of such corporation, joint-stock company or asso- 
 ciation, or insurance company within the year, stating separately all 
 rentals or other payments reqviired to be made as a condition to the 
 continued use or possession of property, and if organized under the 
 laws of a foreign country the amount so paid in the maintenance and . 
 operation of its business within the United States; (fifth) the total 
 amount of all losses actually sustained during the year and not com- 
 pensated by insurance or otherwise, stating separately any amounts 
 allowed for depreciation of property, and m case of insurance com- 
 panies the net addition, if any, required by law to be made within 
 the year to reserve funds and the sums other than dividends paid 
 within the year on policy and annuity contracts. 
 
 Instructions to collectors relative to corporfitions, joint-stock companies 
 or associations, and insurance companies making return of annual net 
 income for their fiscal years instead of the calendar year. (T. D. 1897.) 
 
 Receivt-rs of insolvent corporations, duly appointed by the court, are 
 not required to make returns of the net earnings resulting from their 
 operation of such dissolved corporations. (Scott v. Western Pacific 
 R R. Co., 246 Fed. 54.5 ; Equitable Tr. Co. of New York v. Western Pac. 
 Ry. Co., 236 Fed. 816. 
 
 Mutual fire Insurance companies; premium deposits. 
 
 Proi-ided further, That mutual fire insurance companies requiring 
 their members to make premium deposits to provide for losses and 
 expenses shall not return as income any portion of the premium 
 deposits retained to their policyholders, but shall return as taxable 
 income all income received by them from all other sources plus such 
 portions of the premium deposits as are retained by the companies 
 for purposes other than the payment of losses and expenses and rein- 
 surance reserves. 
 
 Mutual marine insurance companies; life insurance companies. 
 
 Proi'idecl, further. That mutual marine insurance companies shall 
 include in their return of gross income gross premiums collected and 
 received bv them less amounts paid for reinsurance, but shall be enti- 
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APPENDIX. 749 
 
 tied to include in deductions from gross income amounts repaid to 
 policyholders on account of premiums previously paid by them, and 
 interest paid upon such amounts between the ascertainment thereof, 
 and the payment thereof, and life insurance companies shall not 
 include as income in any year such portion of any actual premium 
 received from any individual policyholder as shall have been paid 
 back or credited to such individual policyholder, or treated as an 
 abatement of premium of such individual policyholder, v^ithin such 
 year. 
 
 Foreign corporations doing business In United States; losses. 
 
 And in case of a corporation, joint-stock company or association, 
 or insurance company, organized under the laws of a foreign country, 
 all losses actually sustained by it during the year in business con- 
 ducted by it within the United States, not compensated by insurance 
 or otherwise, stating separately any amounts allowed for deprecia- 
 tion of property, and in case of insurance companies the net addition, 
 if any, required by law to be made within the year to reserve funds 
 and the sums other than dividends paid within the year on policy 
 and annuity contracts, 
 
 Mntnal fire Insurance companies. 
 
 Provided further^ That mutual fire insurance companies requiring 
 their members to make premium deposits to provide for losses and 
 expenses shall not return as income any portion of the premium de- 
 posits returned to their policyholders, but shall return as taxable 
 income all income received by them from all other sources plus such 
 portions of the premium deposits as are retained by the companies 
 for purposes other than the payment of losses and expenses and 
 reinsurance reserves. 
 
 Mutual marine Insurance companies; life insurance companies. 
 
 Provided further^ That mutual marine insvirance companies shall 
 include in their return of gross income gross premiums collected and 
 received by them less amounts paid for reinsurance, but shall be 
 entitled to include in deductions from gross income amounts repaid 
 to policyholders on account of premiums previously paid by them 
 and interest paid upon such amounts between the ascertainment 
 thereof and the payment thereof, and life insurance companies shall 
 not include as income in any year such portion of any actual pre- 
 mium received from any individual policyholder as shall have been 
 paid back or credited to such individual policyholder, or treated as 
 an abatement of premium of such individual policyholder, within 
 such year. 
 
 Returns; further requirements of. 
 
 (Sixth) The amount of interest accrued and paid within the year 
 on its bonded or other indebtedness not exceeding one-half of the 
 sum of its interest-bearing indebtedness and its paid-up capital stock, 
 outstanding at the close of the year, or if no capital stock, the amount 
 of interest paid within the year on an amount of indebtedness not 
 exceeding the amount of capital employed in the business at the close 
 of the year, and in the case of a bank, banking association, or trust 
 company, stating sepa^te^^a^^n^est^^^l. by it within the year on 
 
750 APPEK0IX. 
 
 ^ deposits ;_ or in case of a corporation, joint-stock company or associa- 
 ' tion, or insurance company, organized under tlie laws of a foreign 
 country, interest so paid on its bonded or other indebtedness to an 
 amount of such bonded or other indebtedness not exceeding the pro- 
 portion of its paid-up capital stock outstanding at the close of the 
 year, or if no capital stock, the amount of capital employed in the 
 business at the close of the year, which the gi-oss amount of its income 
 for the year from business transacted and capital invested within 
 the United States bears to the gross amount of its income derived 
 from all sources within and without the United States; (seventh) 
 the amount paid by it within the year for taxes imposed under the 
 authority of the United States and separately the amount so paid by 
 it for taxes imposed by the Government of any foreign country ; 
 (eighth) the net income of such corporation, joint-stock company or 
 association, or insurance company, after making the deductions in 
 this subsection authorized. 
 
 Bctnrns to be sent by eolleetors to the Commissioner. 
 
 All such returns shall as received be transmitted forthwith by the 
 collector to the Commissioner of Internal Revenue. 
 
 Assessments ; notice and payment. 
 
 All assessments shall be made and the several corporations, joint- 
 stock companies or associations, and insurance companies shall be 
 notified of the amount for which they are respectively liable on or 
 before the first day of June of each successive year, and said assess- 
 ment shall be paid on or before the thirtieth day of June. 
 
 See T. D. 1995 ; T. D. 2003. 
 
 Payment by corporations designating different fiscal year. 
 
 Provided, That every corporation, joint-stock company or asso- 
 ciation, and insurance company, computing taxes upon the income of 
 the fiscal year which it may designate in the manner hereinbefore 
 provided, shall pay the taxes due under its assessment within one 
 hundred and twenty days after the date upon which it is required to 
 file its list or return of income for assessment. 
 
 Commissioner to raalte retnrn and assessment within three years. 
 
 Except in cases of refusal or neglect to make such return, and in 
 cases of false or fraudulent returns, in which cases the Commissioner 
 of Internal Eevenue shall, upon the discovery thereof, at any time 
 within three years after said return is due, make a return upon in- 
 formation obtained as provided for in this section or by existing law, 
 and the assessment made by the Commissioner of Internal Eevenue 
 thereon shall be paid by such corporation, joint-stock company or 
 association, or insurance company immediately upon notification of 
 the amount of such assessment; and to any sum or sums due and 
 xmpaid after the thirtieth day of June in any year, or after one hun- 
 dred and twenty days from the date on which the return of income is 
 required to be made by the taxpayer. 
 
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APPENDIX. 751 
 
 FlTe per cent penalty and Interest. 
 
 And after ten days' notice and demand thereof by the collector, 
 there shall be added the sum of 5 per centum on the amount of tax 
 unpaid and interest at the rate of 1 per centum per month upon said 
 tax from the time the same becomes due. 
 
 Betiiriis to be filed; publicity; Inspection, when allowed. 
 
 (d) When the assessment slaall be made, as provided in this sec- 
 tion, the returns, together with any corrections thereof v.'hicli may 
 have been made by the Commissioner, shall be filed in the office of the 
 Commissioner of Internal Revenue and shall constitute public records 
 and be open to inspection as such : Provided, That any and all such 
 I'eturns shall be open to inspection only upon the order of the Presi- 
 dent, under rules and regulations to be prescribed by the Secretary 
 of the Treasury and approved by the President: Provided further. 
 That the proper officers of any State imposing a general income tax 
 may, upon the request of the governor thereof, have access to said 
 returns or to an abstract thereof, showing the name and income of 
 each such corporation, joint-stock company, association, or insurance 
 company, at such times and in such manner as the Secretary of the 
 Treasury may prescribe. 
 
 Regulations. (T. D.s. 2016, 2961.) 
 Fumishing copies of i-etunis. (T. D. 2962. ) 
 
 Corporations neglecting to maicc return cr mailing false return; penalty. 
 
 If any of the corporations, joint-stock companies or associations, 
 or insurance companies aforesaid, shall refuse or neglect to make a 
 return at the time or times hereinbefore specified in each year, or 
 shall render a false or fraudulent return, such corporation, joint- 
 stock company or association, or insurance company shall be liable to 
 a penalty of not exceeding $10,000. 
 
 Construction of word " State " or " United States." 
 
 H. That the word " State " or " United States " when used in this 
 section shall be construed to include any Territory, Alaska, the Dis- 
 trict of Columbia, Porto Eico, and the Philippine Islands, when 
 such construction is necessary to carry out its provisions. 
 
 Beenactment of sections 3167. 3172, 3173, 3176, B. S. 
 
 I. That sections thirty-one hundred and sixty -seven, thirty-one 
 hundred and seventy-two, thirty-one hundred and seventy-three, and 
 thirty-one hundred and seventy-six of the Revised Statutes of the 
 United States as amended are hereby amended so as to read as 
 follows : 
 
 Officers or employees diyulglng information. 
 
 Sec. 3167. It shall be unlawful for any collector, deputy collector, 
 agent, clerk, or other officer or employee of the United States to 
 divulge or to make known in any manner whatever not provided by 
 law to any person the operations, style of work, or apparatus of any 
 manufacturer or producer visited by him in the discharge of his 
 Digitized by Microsoft® 
 
752 
 
 APPENDIX, 
 
 official duties, or the amount or source of income, profits, losses, ex- 
 penditures, or any particular thereof, set forth or disclosed in any 
 income return by any person or corporation, or to permit any income 
 return or copy thereof or any book containing any abstract or par- 
 ticulars thereof to be seen or examined by any person except as pro- 
 vided bjr law; and it shall be unlawful for any person to print or 
 publish in any manner whatever not provided by law any income 
 return or any part thereof or the amount or source of income, profits, 
 losses, or expenditures appearing in any income return; and any 
 offense against the foregoing provision shall be a misdemeanor and 
 be punished by a fine not exceeding $1,000, or by imprisomnent not 
 exceeding one year, or both, at the discretion of the court ; and if the 
 offender be an officer or employee of the United States he shall be 
 dismissed from office and be incapable thereafter of holding any 
 office under the Government. 
 
 Information contained in returns to be treated as inviolably con- 
 fidential. (T. D. 1962.) 
 
 GaiiTass of districts. 
 
 Sec. 3172. Every collector shall, from time to time, cause his depu- 
 ties to proceed through everj' part of his district andi inquire after 
 and concerning all persons therein who are liable to pay any internal- 
 revenue tax, and all persons owning or having the care and man- 
 agement of any objects liable to pay any tax, and to make a list of 
 such persons and enumerate said objects. 
 
 Bctnrns ; aothorlty to Issue summons to appear and tesUt;. 
 
 Sec. 3173. It shall be the duty of any person, partnership, firm, 
 association, or corporation, made liable to any duty, special tax, or 
 other tax impo.sed by law, when not otherwise provided for, in case 
 of a special tax, on or before the thirty-first day of July in each 
 year, in case of income tax on or before the first day of March in 
 each year, and in other cases before the day on which the taxes 
 accrue, to make a list or return, verified by oath or affirmation, to the 
 collector or a deputy collector of the district where located, of the 
 articles or objects, including the amount of annual income charged 
 with a duty or tax, tlie quantity of goods, wares, and merchandise 
 made or sold and charged with a tax, the several rates and aggregate 
 amount, according to the forms and regulations to be prescribed 
 by the Commissioner of Internal Eevenue, with the approval of the 
 Secretary of the Treasury, for which such person, partnership, firm, 
 association, or corporation is liable : Provided, That if any person 
 liable to pay any duty or tax, or owning, possessing, or having the 
 care or management of property, goods, wares, and merchandise, 
 articles or objects liable to pay any duty, tax, or license, shall fail 
 to make and exhibit a list or return required by law, but shall consent 
 to disclose the particulars of any and all the property, goods, wares, 
 and merchandise, articles, and objects liable to pay any duty or tax, 
 or any business or occupation liable to pay any tax as aforesaid, then, 
 and in that case, it shall be the duty of the collector or deputy col- 
 lector to make such list or return, which, being distinctly read, con- 
 sented to, and signed and verified by oath or affirmation by the person 
 so owning, possessing, or having the care and management as afore- 
 ^' ^ Digitized by Microsoft® ^ 
 
APPENDIX. 753 
 
 said, may be received as the list of sucli person : Pro vided fiiriher, 
 That in case no annual list or return has been rendered by such per- 
 son to the collector or deputy collector as required by law, and the 
 person shall be absent from his or her residence or place of business 
 at the time the collector or a deputy collector shall call for the annual 
 list or return, it shall be the duty of such collector or deputy collector 
 to leave at such place of residence or business, with some one of suit- 
 able age and discretion, if such be present, otherwise to deposit in 
 the nearest post office, a note or memorandum addressed to such per- 
 son, requiring him or her to render to such collector or deputy col- 
 lector the list or return required by law within ten days from the 
 date of such note or memorandum, verified by oath or affirmation. 
 And if any person, on being notified or required as aforesaid, shall 
 refuse or neglect to render such list or return within the time re- 
 quired as aforesaid, or whenever any person who is required to de- 
 liver a monthly or other return of objects subject to tax fails to do 
 so at the time required, or delivers any return which, in the opinion 
 of the collector, is false or fraudulent, or contains any undervalua- 
 tion or understatement, it shall be lawful for the collector to sum- 
 mon such person, or any other person having possession, custody, or 
 care of books of account containing entries relating to the business 
 of such person, or any other person he may deem proper, to appear 
 before him and produce such books, at a time and place named in 
 the summons, and to give testimony or answer interrogatories, under 
 oath, respecting any objects liable to tax or the returns thereof. The 
 collector may summon any person residing or found within the State 
 in which his district lies; and when the person intended to be sum- 
 moned does not reside and can not be found within such State, he 
 may enter any collection district where such person may be found 
 and there make the examination herein authorized. And to this end 
 he may there exercise all the authority which he might lawfully ex- 
 ercise in the district for which he was commissioned. 
 
 Collection of 100 and 50 per cent additional to tax in case of failcre to make return or of false 
 
 or fraudulent return. 
 
 Sec. 3176. When any person, corporation, company, or associa- 
 tion refuses or neglects to render any return or list required by law, 
 or renders a false or fraudulent return or list, the collector or any 
 deputy collector shall make, according to the best information which 
 he can obtain, including that derived from the evidence elicited by 
 the examination of the collector, and on his own view and informa- 
 tion, such list or return, according to the form prescribed^ of the 
 income, property, and objects liable to tax owned or possessed or 
 under the care or management of such person or corporation, com- 
 pany or association, and the Commissioner of Internal Revenue shall 
 assess all taxes not paid by stamps, including the amount, if any, 
 due for special tax, income or other tax, and in case of any return 
 of a false or fraudulent list or valuation intentionally he shall add 
 100 per centum to such tax ; and in case of a refusal or neglect, ex- 
 cept in cases of siclniess or absence, to make a list or return, or to 
 verify the same as aforesaid, he shall add 50 per centum to such tax. 
 In case of neglect occasioned by sickness or absence as aforesaid the 
 collector may allow such further time for making and delivering 
 such list or return, as Jie may jieem necessary, not exceeding thirty 
 140184°— 20 48 '9"'^® ^ ICrOSO 
 
754 APPENDIX. 
 
 days. The amount so added to the tax shall be collected at the same 
 time and in the same manner as the tax unless the neglect or falsity 
 is discovered after the tax has been paid, in which case the amount 
 so added shall be collected in the same manner as the tax; and the 
 list or return so made and subscribed by such collector or deputy 
 collector shall be held prima facie good and sufficient for all legal 
 purposes. 
 
 Eecclpts for taxes. 
 
 J. That it shall be the duty of every collector of internal revenue, 
 to whom any payment of any taxes other that the tax represented 
 by an adhesive stamp or other engraved stamp is made under the 
 provisions of this section, to give to the person making such payment 
 a full written or printed receipt, expressing the amount paid and 
 the particular account for which such payment was made; and 
 whenever such payment is made such collector shall, if required, 
 give a separate receipt for each tax paid by any debtor, on account 
 of payments made to or to be made by him to separate creditors in 
 such form that such debtor can conveniently produce the same sepa- 
 rately to his several creditors in satisfaction of their respective de- 
 mands to the amounts specified in such receipts; and such receipts 
 shall be sufficient evidence in favor of such debtor to justify him in 
 withholding the amount therein expressed from his next payment to 
 his creditor ; but such creditor may, upon giving to his debtor a full 
 written receipt, acknowledging the payment to him of whatever sum 
 may be actually paid, and accepting the amount of tax paid as afore- 
 said (specifying the same) as a further satisfaction of the debt to 
 that amount, require the surrender to him of such collector's receipt. 
 
 Jarisdiction. 
 
 K. That jurisdiction is hereby conferred upon the district courts 
 of the United States for the district within which any person sum- 
 moned under this section to appear to testify or to produce books 
 shall reside, to compel such attendance, production of books, and 
 testimony by appropriate process. 
 
 General prorislons extended and made applicable. 
 
 L. That all administrative, special, and general provisions of law, 
 including the laws in relation to the assessment, remission, collection, 
 and refund of internal-revenue taxes not heretofore specifically re- 
 pealed and not inconsistent with the provisions of this section, are 
 hereby extended and made applicable to all the provisions of this 
 section and to the tax herein imposed. 
 
 No jurisdiction to entertain suit brouglit to restrain collection of tax. 
 (Dodge V. Brady, 240 U. S., 122; T. D. 2302.) 
 
 General lu'ovlsions of law, including laws in relation to collection and 
 refund of taxes, are applicable to income tax law. (Dodge v. Osborn, 
 240 U. S., 118; T. D. 2301.) 
 
 Porto Eico and the Philippine Islands. 
 
 M. That the provisions of this section shall extend to Porto Rico 
 and the Philippine Islands: Provided, That the administration of 
 the law and the collection of the taxes imposed in Porto Eico and 
 the Philippine Islanc^y^^Jbg^^y^^^^opriate internal-revenue 
 
APPENDIX. 755 
 
 officers of those governments, and all revenues collected in Porto 
 Rico and the Philippine Islands thereunder shall accrue intact to the 
 general governments _ thereof, respectively: And j»'ovided further. 
 That the jurisdiction in this section conferred upon the district courts 
 of the United States shall, so far as the Philippine Islands are con- 
 cerned, be vested in the courts of the first instance of said islands: 
 And 'provided further, That nothing in this section shall be held to 
 exclude from the computation of the net income the compensation 
 paid any official by the governments of the District of Columbia, 
 Porto Rico, and the Philippine Islands, or the political subdivisions 
 thereof. 
 
 Appropriation; officers and employees. 
 
 N. That for the purpose of carrying into effect the provisions of 
 Section II of this act, and to pay the expenses of assessing and collect- 
 ing the income tax therein imposed, and to pay such sums as the 
 Commissioner of Internal Revenue, with the approval of the Secre- 
 tary of the Treasury, may deem necessary, for information, detec- 
 tion, and bringing to trial and punishment persons guilty of violating 
 the provisions of this section, or conniving at the same, in cases 
 where such expenses are not otherwise provided for by law, there is 
 hereby appropriated out of any money in the Treasury not otherwise 
 appropriated for the fiscal year ending June thirtieth, nineteen hun- 
 dred and fourteen, the sum of $800,000', and the Commissioner of 
 Internal Revenue, with the approval of the Secretary of the Treas- 
 ury, is authorized to appoint and pay from this appropriation all 
 necessary officers, agents, inspectors, deputy collectors, clerks, mes- 
 sengers, and janitors, and toi rent such quarters, purchase such sup- 
 plies, equipment, mechanical devices, and other articles as may be 
 necessary for employment or use in the District of Columbia or any 
 collection district in the United States, or any of the Tei-ritories 
 thereof : Provided, That no agent paid from this appropriation shall 
 receive compensation at a rate higher than that now received by 
 traveling agents on accounts in the Internal-Revenue Service, and 
 no inspector shall receive a compensation higher than $5 a day and 
 $3 additional in lieu of subsistence, and no deputy collector, clerk, 
 messenger, or other employee shall be j)aid at a rate of compensa- 
 tion higher than the rate now being paid for the same or similar 
 work in the Internal-Revenue Service. 
 
 In the office of the Commissioner of Internal Revenue at Wash- 
 ington, District of Columbia, there shall be appointed by the Com- 
 missioner of Internal Revenue, with the approval of the Secretary 
 of the Treasury, one additional deputj' commissioner, at a salary of 
 $4,000 per annum ; two heads of divisions, whose compensation shall 
 not exceed $2,-500 per annum ; and such other clerks, messengers, and 
 employees, and to rent such quarters and to purchase such supplies as 
 may be necessary : Provided, That for a period of two years from 
 and after the passage of this act the force of agents, deputy collec- 
 tors, inspectors, and other employees, not including the clerical force 
 below the grade of chief of division, employed in the Bureau of 
 Internal Revenue in the city of Washington, District of Columbia, 
 authorized by this section of this act shall be appointed by the Com- 
 missioner of Internal Revenue, with the approval of the Secretary 
 Digitized by Microsoft® 
 
756 
 
 APPENDIX. 
 
 of the Treasury, under such rules and regulations as may be fixed 
 by the Secretary of the Treasury to insure faithful and competent 
 service, and with such compensation as the Commissioner of Internal 
 Eevenue may fix, with the approval of the Secretary of the Treas- 
 ury, within the limitations herein prescribed: Provided further^ 
 That the force authorized to carry out the provisions of Section II 
 of this act, when not employed as herein provided, shall be employed 
 on general internal-revenue work. 
 
 Rules and regulations governing the employment of the force necessary 
 to carry out the provisions of the income-tax law. (T. D. 1883.) 
 
 Synopsis of rulings on questions relating to the income tax. (T. D. 
 2090.) 
 
 Section IV. 
 
 Articles coming Into the United States from the Philippine Islands, and articles going Into the 
 Philippine Islands from the United States. 
 
 Par. C. That there shall be levied, collected, and paid upon all 
 articles coming into the United States from the Philippine Islands 
 the rates of duty which are required to be levied, collected, and paid 
 upon like articles imported from foreign countries: Provided, That 
 all articles, the growth or product of or manufactured in the Philip- 
 pine Islands from materials the growth or product of the Philippine 
 Islands or of the United States, or of both, or which do not contain 
 foreign materials to the value of more than 20 per centum of their 
 total value, upon which no drawback of customs duties has been 
 allowed therein, coming into the United States from the Philippine 
 Islands shall hereafter be admitted free of duty : 
 
 Provided, however, That in consideration of the exemptions afore- 
 said, all articles, the growth, product, or manufacture of the United 
 States, upon which no drawback of customs duties has been allowed 
 therein, shall be admitted to the Philippine Islands from the United 
 States free of duty: 
 
 And provided further, That the free admission, herein provided, 
 of such articles, the growth, product, or manufacture of the United 
 States, into the Philippine Islands, or of the growth, product, or 
 manufacture, as hereinbefore defined, of the Philippine Islands into 
 the United States, shall be conditioned upon the direct shipment 
 thereof, under a through bill of lading, from the country of origin 
 to the country of destination : 
 
 Provided, That direct shipment shall include shipments in bond 
 through foreign territory contiguous to the United States : 
 
 Provided, hoioever, That if such articles become unpacked while 
 en route by accident, wreck, or other casualty, or so damaged as to 
 necessitate their repacking, the same shall be admitted free of duty 
 upon satisfactory proof that the unpacking occurred through acci- 
 dent or necessity and that the merchandise involved is the identical 
 merchandise originally shipped from the United 'States or the Philip- 
 pine Islands, as the case may be, and that its condition has not been 
 changed except for such damage as may have been sustained : 
 
 And provided, That there shall be levied, collected, and paid, in 
 the United States, "P^gf jC,tJ^fS^ i^8*feoW®^' °^ merchandise com- 
 
APPENDIX. 757 
 
 ing into the United States from the Philippine Islands, a tax equal to 
 the internal-revenue tax imposed in the United States UDOn the lilie 
 articles, goods, wares, or merchandise of domestic manufacture ; such 
 tax to be paid by internal-revenue stamp or stamps, to be provided 
 by the Commissioner of Internal Revenue, and to be affixed in such 
 manner and under such regulations as he, with the approval of the 
 Secretary of the Treasury, shall prescribe; and such articles, goods, 
 wares, or merchandise, shipped from, said islands to the United 
 States, shall be exempt from the payment of any tax imposed by 
 the internal-revenue laws of the Philippine Islands: 
 
 And provided further; That there shall be levied, collected, and 
 paid in the Philippine Islands, upon articles, goods, wares, or mer- 
 chandise going into the Philippine Islands from the United States, 
 a tax equal to the internal-revenue tax imposed in the Philippine 
 Islands upon the like articles, goods, wares, or merchandise of Phil- 
 ippine Islands manufacture ; such tax to be paid by internal-revenue 
 stamps or otherwise, as provided by the laws in the Philippine 
 Islands; and such articles, goods, wares, or merchandise going into 
 the Philippine Islands from the United States shall be exempt from 
 the payment of any tax imposed by the internal-revenue laws of the 
 United States: 
 
 And prcrvided further, That in addition to the customs taxes im- 
 posed in the Philippine Islands, there shall be levied, collected, and 
 paid therein upon articles, goods, wares, or merchandise imported 
 into the Philippine Islands from countries other than the United 
 States, the internal-revenue tax imposed by the Philippine Govern- 
 ment on like articles manufactured and consumed in the Philippine 
 Islands or shipped thereto for consumption therein, from the United 
 States : 
 
 And provided further, That from and after the passage of this act 
 all internal revenues collected in or for account of the Philippine 
 Islands shall accrue intact to the general government thereof and 
 be paid into the insular treasury: 
 
 And provided fivrther, That section thirteen of "An act to raise 
 revenue for the Philippine Islands, and for other piirposes," ap- 
 proved August fifth, nineteen hundred and nine, is hereby repealed. 
 
 Porto Blco. 
 
 Par. D. That articles, goods, wares, or merchandise going into 
 Porto Rico from the United States shall be exempted from the pay- 
 ment of any tax imposed by the internal-revenue laws of the United 
 States. 
 
 Articles or products withdrawn required to be branded as prescribed 
 for such articles for export, and in addition required to be stenciled or 
 branded in plain roman letters the words: "For shipment to Porto 
 Rico." (T. D. 1884.) 
 
 Manafactnrc of articles Intended for exportation in bonded irarehonses. 
 
 Par. M. That all articles manufactured in whole or in part of im- 
 ported materials, or of materials subject to internal-revenue tax, and 
 intendecl for exportation without being charged with duty, and with- 
 out having an internal-revenue stamp affixed thereto, shall, under 
 such regulations as tl^'SBfef 6fc&*y^'f/'®©/^easury may prescribe, in 
 
758 APPENDIX. 
 
 order to be so manufactured and exported, be made and manufac- 
 tured in bonded warehouses similar to those known and designated in 
 Treasury Regulations as bonded warehouses, class six: Provided, 
 That the manufacturer of such articles shall first give satisfactory 
 bonds for the faithful observance of all the provisions of law and of 
 such regulations as shall be prescribed by the Secretary of the Treas- 
 ury : Provided further, That the manufacture of distilled spirits from 
 grain, starch, molasses, or sugar, including all dilutions or mixtures 
 of them or either of them, shall not be permitted in such manufac- 
 turing warehouses. 
 
 Whenever goods manufactured in any bonded warehouse estab- 
 lished under the provisions of the preceding paragraph shall be 
 exported directly therefrom or shall be duly laden for transportation 
 and immediate exportation under the supervision of the proper 
 officer who shall be duly designated for that purpose, such goods 
 shall be exempt from duty and from the requirements relating to 
 revenue stamps. 
 
 Any materials used in the manufacture of such goods, and any 
 packages, coverings, vessels, brands, and labels used in putting up 
 the same may, under the regulations of the Secretary of the Treasury, 
 be conveyed without the payment of revenue tax or duty into any 
 bonded manufacturing warehouse, and imported goods may, under 
 the aforesaid regulations, be transferred without the exaction of 
 duty from any bonded warehouse into any bonded manufacturing 
 warehouse; but this privilege shall not be held to apply to imple- 
 ments, machinei'y, or apparatus to be used in the construction or 
 repair of any bonded manufacturing warehouse or for the prosecu- 
 tion of the business carried on therein. 
 
 No articles or materials received into such bonded manufacturing 
 warehouse shall be withdrawn or removed therefrom except for 
 direct shipment and exportation or for transportation and immediate 
 exportation in bond to foreign countries or to the Philippine Islands 
 under the supervision of the officer duly designated therefor by the 
 collector of the port, who shall certify to such shipment and exporta- 
 tion, or ladening for transportation, as the case may be, describing 
 the articles by their mark or otherwise, the quantity, the date of 
 exportation, and the name of the vessel: Provided, That the waste 
 material or by-products incident to the processes of manufacture, 
 including waste derived from cleaning rice in bonded warehouses 
 under act of March twenty-fourth, eighteen hundred and seventy- 
 four, in said bonded warehouses may be withdrawn for domestic 
 consumption on the payment of duty equal to the duty which would 
 be assessed and collected, by law, if such waste or by-products were 
 imiDorted from a foreign country. All labor performed and services 
 rendered under these provisions shall be under the supervision of a 
 duly designated officer of the customs and at the expense of the 
 manufacturer. 
 
 A careful account shall be kept by the collector of all merchandise 
 delivered by him to any bonded manufacturing warehouse, and a 
 sworn monthly return, verified by the customs officers in charge, 
 shall be made by the manufacturers containing a detailed statement 
 of all imported" merchandise used by him in the manufacture of 
 exported articles. 
 
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APPENDIX. 759 
 
 Before commencing business the proprietor of any manufacturing 
 warehouse shall file with the Secretary of the Treasury a list of all 
 the articles intended to be manufactured in such warehouse, and 
 state the formula of manufacture and the names and quantities of 
 the ingredients to be used therein. 
 
 Articles manufactured under these provisions may be withdrawn 
 under such regulations as the Secretary of the Treasurer may pre- 
 scribe for transportation and delivery into any bonded warehouse at 
 an exterior port for the sole purpose of immediate export therefrom: 
 
 Provided, That cigars manufactured in whole of tobacco imported 
 fi'om any one country, made and manufactured in such bonded 
 manufacturing warehouses, may be withdrawn for home consumption 
 upon the payment of the duties on such tobacco in its condition as 
 imported under such regulations as the Secretary of the Treasury 
 may prescribe, and the payment of the internal-revenue tax accruing 
 on such cigars in their condition as withdrawn, and the boxes or 
 packages containing such cigars shall be stamped to indicate their 
 character, origin of tobacco from which made, and place of manu- 
 facture. 
 
 The provisions of Eevised Statutes thirty- four hundred and thirty- 
 three shall, so far as may be practicable, apply to any bonded manu- 
 facturing warehouse establislied under this act and to the merchan- 
 dise convej'ed therein. 
 
 BraiTlback. 
 
 Pae. O. That upon the exportation of articles manufactured or 
 produced in the United States by the use of imported merchandise 
 or materials upon ^^hich customs duties have been paid, the full 
 amount of such duties paid upon the quantity of materials used in 
 the manufacture or production of the exported product shall be 
 refunded as drawback, less 1 per cent of such duties: Provided, 
 That where a principal product and a by-px'oduct result from the 
 manipulation of imported material and only the by-product is ex- 
 XDorted, the proportion of the drawback distributed to such by- 
 product shall not exceed the duty assessable under this act on a 
 similar by-product of foreign origin if imported into the United 
 States. Where no duty is assessable upon the unpoi'tation of a 
 corresponding by-product, no drawback shall be j)ayable on such 
 by-product produced from the imported material; if, however, the 
 principal product is exported, then on the exportation thereof there 
 shall be refunded as drawback the whole of the duty paid on the 
 imported material used in the production of both the principal and 
 the by-product, less 1 per cent, as hereinbefore provided: Provided) 
 further, That when the articles exported are manufactured in part 
 from domestic materials, the imported materials or the parts of the 
 articles manufactured from such materials, shall so appear in the 
 completed articles that the quantity or measure thereof may be 
 ascertained : And frovided further, That the drawback on any arti- 
 cle allowed under existing law shall be continued at the rate herein 
 pro-\dded. That the imported materials used in the manufacture or 
 production of articles entitled to drawback of customs duties when 
 exported shall, in all cases where drawback of duties paid on such 
 materials is claimed, be identified, the quantity of such materials used 
 
 and the amount of dutiesjDaid thereon shall be ascertained, the facts 
 Digitizea by Microsoft® ' 
 
760 APPENDIX. 
 
 of the manufacture or production of such articles in the United 
 States and their exportation therefrom shall be determined, and the 
 drawback due thereon shall be paid to the manufajcturer, producer, 
 or exporter, to the agent of either or to the person to whom such 
 manufacturer, producer, exporter, or agent shall in writing order 
 such drawback paid, under such regulations as the Secretary of the 
 Treasury shall prescribe. 
 
 That on the exportation of flavoring extracts, medicinal or toilet 
 preparations (including perfumery) hereafter manufactured or pro- 
 duced in the United States in part from domestic alcohol on which an 
 internal-revenue tax has been paid, there shall be allowed a draw- 
 back equal in amount to the tax found to have been paid on the alco- 
 hol so used : Provided, That no other than domestic tax-paid alcohol 
 shall have been used in the manufacture or production of such 
 preparations. Such drawback shall be determined and paid under 
 such rules and regulations, and upon the filing of such notices, bonds, 
 bills of lading, and other evidence of payment of tax and exporta- 
 tion, as the Secretary of the Treasury shall prescribe. 
 
 That the provisions of this section shall apply to materials used in 
 the construction and equipment of vessels built for foreign account 
 and ownership, or for the Government of any foreign country, not- 
 withstanding that such vessels may not within the strict meaning of 
 the term be articles exported. 
 
 Regulations relative to the use of rectified alcohol in the manufac- 
 ture for export of flavoring extracts, etc. (T. D. 1968.) 
 
 Articles manufactured in the United States from imported materials 
 for exportation, and flavoring extracts, toilet and medicinal preparations 
 manufactured from domestic tax-paid alcohol, under paragraph O of 
 section 4, tariff act of October 3, 1913. (T. D. 33809.) 
 
 Articles rclmported. 
 
 Par. p. That upon the reimportation of articles once exported, of 
 the growth, product, or manufacture of the United States, upon 
 which no internal tax has been assessed or paid, or upon which such 
 tax has been paid and refunded by allowance or drawback, there 
 shall be levied, collected, and paid a duty equal to the tax imposed 
 by the internal-revenue laws upon such articles, except articles manu- 
 factured in bonded warehouses and exported pursuant to law, which 
 shall be subject to the same rate of duty as if originally imported, 
 but proof of the identity of such articles shall be made under gen- 
 eral regulations to be prescribed by the Secretary of the Treasury. 
 
 Kofund of offers in compromise. 
 
 .JOINT RESOLUTION To refund under certain conditions a portion of the 
 offers in compromise for failure to make the return required under the act 
 of October 3, 1913, said offers in compromise having been covered into the 
 Treasury, and for other purposes, approved March 4, 1915 (38 Stat., 1225). 
 
 That the Secretary of the Treasury, on application to the Commis- 
 sioner of Internal Revenue, be, and is hereby, authorized to refund, 
 out of any money in the Treasury not otherwise appropriated, unto 
 corporations all amounts paid by them into the Treasury of the 
 United States in compromise by such corporations on account of 
 their failure to make report under the requirements of the income- 
 Digitized by Microsoft® 
 
APPENDIX. 761 
 
 tax law for the income-tax year nineteen hundred and thirteen, so 
 paid in excess of $10; and the Secretary of the Treasury is further 
 authorized to likewise refund as to said tax year any and all amounts 
 exacted and paid into the Treasury of the United States as penalties 
 by corporations required by the law to make income-tax return, but 
 which in their nature are not subject to income tax; and the Secre- 
 tary is further authorized to likewise refund as to same tax year any 
 and all amounts paid by individuals as penalties on account of their 
 failure to make income-tax returns for said year nineteen hundred 
 and thirteen, as required by law, so paid in excess of $5. 
 
 Claims. (T. D. 2175.) 
 
 4: :!: s}: :!: ^ :!: ^ 
 
 Bepcal in part of act of AngDst 5, 1909 (36 Stat., 11). 
 
 Par. S. That, except as hereinafter provided, sections one to forty- 
 two, both inclusive, of an act entitled " An act to provide revenue, 
 equalize duties, and encourage the industries of the United States, 
 and for other purposes," approved August fifth, nineteen hundred 
 and nine, and all acts and parts of acts inconsistent with the provi- 
 sions of this act, are hereby repealed : Provided^ That nothing in this 
 act shall be construed to pei-mit any oaths to be demanded or fees 
 to be charged except as provided in this act or in section twenty- 
 eight hundred and sixty-two of the Eevised Statutes of the United 
 States, nor to repeal or in any mamier affect the following numbered 
 sections of the aforesaid act approved August fifth, nineteen hundred 
 and nine, viz: Subsection twenty-nine of section twenty-eight and 
 subsequent laws and amendments relating to the establishment and 
 continuance of a Customs Court, subsection thirty of section twenty- 
 eight, providing for additional attorneys, subsection twelve of section 
 twenty-eight and subsequent provisions establishing a Board of Gen- 
 eral Appraisers of merchandise, sections thirty, thirty-one, thirty- 
 two, thirty-three, and thirty-five, imposing an internal-revenue tax 
 upon tobacco, section thirty-six, providing for a tonnage duty, section 
 thirty-nine, authorizing the Secretary of the Treasury to borrow on 
 the credit of the United States to defray expenditures on account of 
 the Panama Canal, section forty, authorizing the Secretary of the 
 Treasury to borrow to meet public expenditures : 
 
 Provided, further^ That all excise taxes upon corporations imposed 
 by section thirty-eight, that have accrued or have been imposed for 
 the year ending December thirty-first, nineteen hundred and twelve, 
 shall be returned, assessed, and collected in the same manner, and 
 under the same provisions, liens, and penalties as if section thirty- 
 eight continued in full force and effect: 
 
 And provided further, That a special excise tax with respect to 
 the carrying on or doing of business, equivalent to 1 per centum 
 upon their entire net income, shall be levied, assessed, and collected 
 upon corporations, joint stock com.panies or associations, and insur- 
 ance companies of the character described in section thirty-eight of 
 the act of August fifth, nineteen hundred and nine, for the period 
 from January first to February twenty-eighth, nineteen hundred and 
 thirteen, both dates inclusive, which said tax shall be computed upon 
 one-sixth of the entire net income of said corporations, joint stock 
 companies or associa^f^^^yi](l^^ggg^^ompanies, for said year, 
 
Y62 APPENDIX. 
 
 said net income to be ascertained in accordance with the provisions of 
 subsection G of section two of this act : 
 
 Provided further^ That the provisions of said section thirty-eight 
 of the act of August fifth, nineteen hundred and nine, relative to the 
 collection of the tax therein imposed shall remain in force for the 
 collection of the excise tax herein provided, but for the year nine- 
 teen hundred and thirteen it shall not be necessary to make more 
 than one return and assessment for all the taxes imposed herein 
 upon said corporations, joint stock companies or associations, and 
 insurance companies, either by way of income or excise, which re- 
 turn and assessment shall be made at the times and in the manner 
 provided in this act ; but the repeal of existing laws or modifications 
 thereof embraced in this act shall not affect any act done, or any 
 right accruing or accrued, or any suit or proceeding had or com- 
 menced in any civil case before the said repeal or modification ; but 
 all rights and liabilities under said laws shall continue and may be 
 enforced in the same manner as if said repeal or modifications had 
 not been made. Any offenses committed and all penalties or for- 
 feitures or liabilities incurred prior to tlie passage of this act under 
 any statute embraced in or changed, modified, or repealed by this 
 act may be prosecuted or punished in the same manner and with the 
 same efi'ect as if this act had not been passed. No acts of limita- 
 tion now in force, whether applicable to civil causes and proceed- 
 ings or to the prosecution of offenses or for the recovery of penalties 
 or forfeitures embraced in or modified, changed, or repealed by this 
 act shall be affected thereby so far as they affect any suits, proceed- 
 ings, or prosecutions, whether civil or criminal, for causes arising 
 or acts done or committed prior to the passage of this act, which 
 may be commenced and prosecuted within the same time and with 
 the same effect as if this act had not been passed. 
 
 Saving clause intended to relate only to rights and liabilities in re- 
 spect to taxes accrued under 1909 act and was not intended to cover 
 excise taxes for months of January and February, 1913. (Butterick 
 Go. V. United States, 240 Fed., 539.) 
 
 Chapter 9. 
 
 AN ACT TO INCREASE THE INTERNAL REVENUE, AND FOR OTHER 
 PURPOSES. APPROVED OCTOBER 22, 1914 (38 STAT., 745). 
 
 Fermented liquors. 
 
 Wines, liquors, cordials, etc. 
 
 Fortified \yines. 
 
 Amendment to law relative to wines. 
 
 Special taxes on occupations. 
 
 Tobacco dealers and manufacturers. 
 
 Penalty. 
 
 Adhesive stamps; tax on instruments. 
 
 Taxes under Schedule B. 
 
 Penalty. 
 
 Counterfeiting stamps; selling forged 
 stamps; removing and reusing 
 stamps; penalties. 
 
 Cancellation of stamps; penalty. 
 
 Persons issuing promissory note un- 
 stamped; penalty. Esemptloi 
 
 Digitized by Microsoft® 
 
 Collectors to furnish stamps; regula- 
 tions. 
 
 Persons registering, issuing, etc., any 
 instruments, documents, etc., with- 
 out stamp ; penalty ; validating In- 
 struments. 
 
 Instrument not to be recorded if un- 
 stamped; bonds, etc., issued in for- 
 eign countries to be stamped. 
 
 Not lawful to record instrument until 
 stamped. 
 
 Instrument not valid on account of 
 absence of particular denomination 
 of stamp. 
 
 Exemptions. 
 
APPENDIX. 
 
 763 
 
 Provisions as to dies and stamps ap- 
 plicable to Schedule B. 
 
 When Schedule B takes effect; pen- 
 alty. 
 
 Removing stamps, reusing wrappers, 
 etc. ; penalty. 
 
 Articles in Schedule B; sending out 
 before affixing stamps; penalty. 
 
 Articles for exportation. 
 
 Declaration in writing to be filed with, 
 collector monthly; penalty. 
 
 Definition of manufacturer. 
 
 Stamps on imported merchandise. 
 
 Stamps to be prepared ; discount. 
 
 Schedule A, stamp taxes on instru- 
 ments. 
 
 Schedule B, stamp taxes on perfumery 
 and cosmetics, and other similar ar- 
 ticles, and on chewing gum. 
 
 Drawback. 
 
 General prQvisions applicable; pen- 
 alty ; appropriation. 
 
 Date act takes effect; how long in 
 force ; redemption of stamps. 
 
 Extension of act of October 22, 1914, 
 appropriation. 
 
 Redemption of stamps. 
 
 Repeal of act of October 22, 1914. 
 
 Fermented liquors. 
 
 Be it etwxited, etc., That there shall be levied, collected, and paid 
 in lieu of the tax of $1 now imposed by law, a tax of $1.50 on all 
 beer, lager beer, ale, porter, and other similar fermented liquor, 
 bre"wed or manufactured and sold, or stored in warehouse, or re- 
 moved for consumption or sale, within the United States, by what- 
 ever name such liquors may be called, for every barrel containing 
 not more than thirty-one gallons; and at a like rate for any other 
 cjuantity or for the fractional parts of a barrel authorized and de- 
 fined by law. And section thirty-three hundred and thirty-nine of 
 the Revised Statutes is hereby amended accordingly : Provided, 
 That the additional tax imposed in this section on all fermented 
 liquors stored in warehouse to which a stamp has been affixed shall 
 be assessed and collected in the manner now provided by law for the 
 collection of taxes not paid by stamp: Provided further, That until 
 appropriate stamps are prepared and furnished, the stamps hereto- 
 fore used to denote the payment of the internal-revenue tax on fer- 
 mented liquor may be stamped or imprinted with a suitable device 
 to denote the new rate of tax herein imposed, and shall be affixed to 
 all packages containing such liquors on which the tax imposed by 
 this act is paid. Any person having possession of unaffixed stamps 
 heretofore issued for the payment of the tax on fermented liquors 
 shall present the same to the collector of the district, who shall re- 
 ceive them at the price paid for such stamps by the purchaser and 
 issue in lieu thereof new or imprinted stamps at the rate provided in 
 this act. 
 
 Additional tax; instructions to collectors, (T. D. 2026.) 
 Instructions relative to reporting collection of additional taxes. (T. D. 
 
 2031.) 
 
 Further instructions in connection with additional tax on fermented 
 
 liquors. (T. D. 2047.) 
 
 Wines, liciaeuTS, cordials, etc. 
 
 Sec. 2. That upon all still wines, domestic and imported, when 
 sold or offered for sale or consumption, there shall be levied and col- 
 lected taxes as follows : On each bottle containing one-fourth pint or 
 less, one-fourth cent ; on each bottle containing more than one-fourth 
 pint and not more than one-half pint, one-half cent; on each bottle 
 containing more than one-half pint and not more than one pint, 1 
 cent ; and on each bottle containing more than one pint and not more 
 Digitized by Microsoft® 
 
764 APPENDIX. 
 
 than one quart, 2 cents ; and on still wines in all other containers, not 
 herein specially provided for, the tax shall be at the rate of 8 cents 
 per gallon. 
 
 That upon all domestic and imported champagne and other spar- 
 kling wines, and upon all artificially carbonated wines when sold or 
 offered for sale or consumption, there shall be levied and collected 
 taxes as follows: Upon each bottle containing one-half pint or less, 
 5 cents; on each bottle containing more than one-half pint and not 
 more than one pint, 10 cents ; on each bottle containing more than one 
 pint and not more than one quart, 20 cents; and on all other con- 
 tainers at the rate of 20 cents per quart ; and on all liqueurs, cordials, 
 or similar compounds, domestic and imported, by whatever name 
 sold or offered for sale, there shall be levied and collected a tax on 
 each bottle containing not more than one-half pint, 1^ cents ; more 
 than one-half pint and not more than one pint, 3 cents; more than 
 one pint and not more than one quart, 6 cents; and on larger con- 
 tainers a tax at the rate of 24 cents per gallon. 
 
 All of the taxes imposed in the preceding paragraphs of this section 
 shall be paid by stamps to be affixed to each bottle or container in 
 which such still wines, champagne wines, carbonated wines, liqueurs, 
 or cordials, or similar compounds are sold or offered for sale: Pro- 
 vided, That when such still wines, champagne wines, carbonated 
 wines, liqueurs, cordials, or similar compounds, taxable under the 
 provisions of this section, are sold or delivered by the producer, im- 
 porter, or dealer in wholesale quantities to other dealers, including 
 rectifiers, manufacturing chemists,' and druggists, the dealer receiv- 
 ing and selling, or offering the same for sale or consumption to any 
 person other than a dealer, shall affix thereto the stamps hereinbefore 
 prescribed : A7xd provided further, That the stamp tax herein imposed 
 shall not be collected on any still wine used by any rectifier, manufac- 
 turing chemist, or druggist in the manufacture of any liqueur, cor- 
 dial, or compound subject to any internal-revenue tax imposed by this 
 act. 
 
 The Commissioner of Internal Eevenue shall cause to be pre- 
 pared suitable and special stamps denoting the tax herein imposed, to 
 be affixed and canceled in such manner as he, with the approval of 
 the Secretary of the Treasury, may prescribe; and in the absence of 
 such stamps from any bottle or container containing wine, liqueur, 
 cordial, or compound taxable under the provisions of this section, 
 sold or offered for sale or consumption, shall be prima facie evidence 
 that the tax thereon has not been paid, and all such wines, liqueurs, 
 cordials, or compounds shall be forfeited to the United States. 
 
 Clnssiflcation of Uqueuvs, cordials, and similar compounds. ( T. D. 2050. ) 
 
 Affixing and canceling stamps on containers of wines, cordials, liqueurs, 
 and similar compounds. (T. D. 2053.) 
 
 Instructions for stamping bottles and other containers of wines, li- 
 queurs, cordials, and similar compounds. (T. D. 2078, 2338, 2352.) 
 
 Penalty for selling or offering for sale unstamped articles subject to 
 tax. (T. D. 2118.) 
 
 ■ Instructions relative to taxation of gins, as compounds to similar 
 liqueurs and cordials. (T. D. 2120.) 
 
 Instructions relative to tax payment and stamping of kirsch or kirsch- 
 \vass<'r, zwi'tschenwasser or quetschenwasser, arrack, branvin, and 
 aquavit, as liqueurs, cordials, or similar compounds. (T. D. 2208.) 
 
 Digitized by Microsoft® 
 
APPENDIX. 765 
 
 Fortified nines. 
 
 There shall be levied and assessed against the maker or producer 
 of all wines fortified under the provisions and conforming to the 
 requirements of the sections of the tariff act of October first, eighteen 
 hundred and ninety, relating to the fortification of pure sweet wines, 
 as amended, and as further amended by this act, a tax of 55 cents on 
 each taxable gallon of grape brandy or wine spirits used by him in 
 the fortification of such wines : Provided^ however, That the maker 
 or producer of such fortified wine shall, under regulations and suit- 
 able bonds, to be prescribed by the Commissioner of Internal Reve- 
 nue, with the approval of the Secretary of the Treasury, have 
 assessed against him monthly the said tax of 55 cents on each taxable 
 gallon of grape brandy or wine spirits used by him during the pre- 
 ceding month, which assessment shall be paid within ninety days 
 from the date of notice thereof: Provided further, That nothing 
 herein contained shall be construed as exempting any still wines, cor- 
 dials, liqueurs, or similar compounds from the payment of any stamp 
 tax provided for in this section. 
 
 The Commissioner of Internal Revenue, with the approval of the 
 Secretary of the Treasury, is hereby authorized to make all necessary 
 regulations to make effective the provisions of this section. 
 
 Amendment to law relative to Tvines. 
 
 That sections forty-two, forty-three, forty-five, forty-six, and 
 forty-nine of the act of October first, eighteen hundred and ninety, 
 as amended by section sixty-eight of an act approved August twenty- 
 eighth, eighteen hundred and ninety-four, and by an act approved 
 June seventh, nineteen hundred and six, are further amended to read 
 as follows: ^ 
 
 t- " Sec. 42. That any producer of pure sweet wines may use in the 
 preparation of such sweet wines, under such regulations, and after 
 the filing of such notices and bonds, together with the keeping of 
 such records and the rendition of such reports as to materials and 
 products as the Commissioner of Internal Revenue, with the ap- 
 proval of the Secretary of the Treasury, may prescribe, wine spirits 
 produced by any duly authorized distiller, and the Commissioner 
 of Internal Revenue in determining the liability of any distiller of 
 wine spirits to assessment under section thirty-three hundred and 
 nine of the Revised Statutes, is authorized to allow such distiller 
 credit in his computations for the wine spirits withdrawn to be used 
 in fortifying sweet wines under this act : Provided, That such wine 
 containing after fortification more than twenty-four per centum of 
 alcohol, as defined by section thirty-two hundred and forty-nine of 
 the Revised Statutes, shall be forfeited to the United States. 
 
 " Sec. 43. That the wine spirits mentioned in section forty-two 
 of this act is the product resulting from the distillation of fer- 
 mented grape juice, to which water may have been added prior to, 
 during, or after fermentation, for the sole purjDose of facilitating 
 the fermentation and economical distillation thereof, and shall be 
 held to include the joroduct from grapes or their lesidues commonly 
 known as grape brandy, and shall include commercial grape brandy 
 Digitized by Microsoft® 
 
766 APPENDIX. 
 
 which may have been colored with burnt sugar or caramel ; and the 
 pure sweet wine which may be fortified with wine spirits under the 
 provisions of this act is fermented or partially fermented grape 
 juice only, with the usual cellar treatment, and shall contain no 
 other substance whatever introduced before, at the time of, or after 
 fermentation, except as herein expressly provided: Provided, That 
 the addition of pure boilecl or condensed grape must be pure crys- 
 tallized cane or beet sugar, or pure dextrose sugar or water, or any 
 or all of them, to the pure grape juice before fermentation, or to 
 the fermented product of such grape juice, or to both, prior to the 
 fortification provided in this act, either for the purpose of perfect- 
 ing sweet wines according to commercial standards or for mechani- 
 cal purposes, shall not be excluded by the definition of pure sweet 
 wine aforesaid : Provided, however. That the cane or beet sugar, or 
 pure dextrose sugar so used shall not be in excess of eleven per 
 centum of the weight of the wine to be fortified under this act: 
 And provided further. That the addition of water herein authorized 
 shall be under such regulations and limitations as the Commissioner 
 of Internal Revenue, with the approval of the Secretary of the 
 Treasury, may from time to time prescribe: Provided, however, 
 That records kept in accordance with such regulations as to the per- 
 centage of saccharine, acid, alcoholic, and added water content of the 
 wine offered for fortification shall be open to inspection by any 
 official of the Department of Agriculture thereto duly authorized 
 by the Secretary of Agriculture ; but in no case shall such wines to 
 which water has been added be eligible for fortification under the 
 provisions of this act, where the same, after fermentation and be- 
 fore fortification, have an alcoholic strength of less than five per 
 centum of their volume. 
 
 " Sec. 45. That under such regulations and official supervision, and 
 upon the execution of such entries and the giving of such bonds, 
 bills of lading, and other security as the Commissioner of Internal 
 Eevenue, with the approval of the Secretary of the Treasury, shall 
 prescribe, any producer of pure sweet wines as defined by this act 
 may withdraw wine sjjirits from any special bonded warehouse in 
 original packages or from any registered distillery in any quantity 
 not less than eighty wine gallons, and may use so much of the same 
 as may be required by him under such regulations, and after the 
 filing of such notices and bonds and the keeping of such records and 
 the rendition of such reports as to materials and products and the 
 disposition of the same as the Commissioner of Internal Revenue, 
 with the approval of the Secretary of the Treasury, shall prescribe, 
 in fortifying the pure sweet wines made by him, and for no other 
 purpose, in accordance with the foregoing limitations and provisions; 
 and the Commissioner of Internal Revenue, with the approval of 
 the Secretary of the Treasury, is authorized whenever he shall deem 
 it to be necessary for the prevention of violations of this law to pre- 
 scribe that wine spirits withdrawn under this section shall not be 
 used to fortify wines except at a certain distance prescribed by him 
 from any distillery, rectifying house, winery, or other establishment 
 used for producing or storing distilled spirits, or for making or stor- 
 ing wines other than wines which are so fortified, and that in the 
 building in which such fortification of wines is practiced no wines or 
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APPENDIX. 767 
 
 spirits other than those permitted by this regulation shall be stored 
 in any room or part of the building in which fortification of wine is 
 practiced. The use of wine spirits for the fortification of sweet 
 wines under this act shall be under the immediate supervision of an 
 oiEcer of internal revenue, who shall make returns describing the 
 kinds and quantities of wine so fortified, and shall affix such stamps 
 and seals to the packages containing such wines as may be prescribed 
 by the Commissioner of Internal Revenue, with the approval of the 
 Secretary of the Treasury ; and the Commissioner of Internal Eeve- 
 nue shall provide by regulations the time within which Avines so forti- 
 fied with the wine spirits so withdrawn may be subject to inspection, 
 and for final accounting for the use of such wine spirits and for 
 rewarehousing or for payment of the tax on any portion of such 
 wine spirits which remain not used in fortifying pure sweet wines. 
 
 " Sec. 46. That wine spirits may be withdrawn from special bonded 
 warehouses at the instance of any person desiring to use the same to 
 fortify any wines, in accordance with commercial demands of foreign 
 markets, when such wines are intended for exportation, without the 
 payment of tax on the amount of wine spirits used in such fortifi- 
 cation, under such regulations, and after maldng such entries, and 
 executing and filing- -svith the collector of the district from which the 
 removal is to be made such bonds and bills of lading, and giving such 
 other additional security to prevent the use of such wine spirits free 
 of tax otherwise than in the fortification of wine intended for expor- 
 tation and for the due exportation of the wine so fortified, as may be 
 prescribed by the Commissioner of Internal Revenue, with the ap- 
 proval of the Secretary of the Treasury ; and all of the provisions of 
 lavr governing the exportation of distilled spirits free of tax, so far as 
 applicable, shall apply to the withdrawal and use of wine spirits and 
 the exportation of the same in accordance with this section ; and the 
 Commissioner of Internal Revenue is authorized, subject to the ap- 
 proval of the Secretary of the Treasury, to prescribe that wine spirits 
 intended for the fortification of wines under this section shall not be 
 introduced into such wines except under the immediate supervision 
 of an officer of internal revenue, who shall make returns describing 
 the kinds and quantities of wine so fortified, and shall affix such 
 stamps and seals to the jDackages containing such wines as may be 
 prescribed by the Commissioner of Internal Revenue, with the ap- 
 proval of the Secretary of the Treasury. Whenever transportation 
 of such wine is to be effected by land carriage the Commissioner of 
 Internal Revenue, with the approval of the Secretary of the Treasury, 
 shall prescribe such regulations as to sealing packages and vehicles 
 containing same, and as to the supervision of transportation from 
 the point of departure, which point shall be determined as the place 
 where such wine spirits may be introduced into such wines to the 
 point of destination as may be necessary to insure the due exportation 
 of such fortified wines: Provided, That where, in accordance with 
 regulations of the Commissioner of Internal Revenue, with the ap- 
 proval of the Secretary of the Treasury', wines fortified under the 
 provisions of this act with brandy taxable at 55 ©ents per proof 
 gallon are exported directly from the winery where fortified, there 
 shall be allowed an abatement or refund .of tax equivalent to 55 
 cents per gallon on each proof gallon of wine spirits contained in 
 Digitized by Microsoft® 
 
768 
 
 APPENDIX, 
 
 such wine at the time of exportation, which amount of wine spirits 
 shall be ascertained by the Commissioner of Internal Eevenue under 
 regulations approved by the Secretary of the Treasury: Provided, 
 That such wine spirits on which abatement or refund of tax is allowed 
 shall not exceed the total amount of alcohol in such wine over and 
 above fourteen per centum thereof. 
 
 " Sec. 49. That wine spirits used in fortifying wines may be re- 
 covered from such wines only on the premises of a duly authorized 
 grape-brandy distiller, and for the purpose of such recovery wine so 
 fortified may be received as material on the premises of such a dis- 
 tiller, on a special permit of the collector of internal revenue in whose 
 district the distillery is located ; and the distiller will be held to pay 
 the tax on the product from such wines as will include both the alco- 
 holic strength therein produced by the fermentation of the grape 
 juice and that obtained from the added distilled wine spirits: Pro- 
 vided, That when application for such special permit for redistilla- 
 tion shall be made by the producer of any wines fortified with brandy 
 subject to the tax of 55 cents per proof gallon, before such wine shall 
 have been moved from the premises of the winery where fortified 
 and the redistillation is had under regulations made by the Commis- 
 sioner of Internal Eevenue, with the approval of the Secretary of 
 the Treasury, an abatement or refund of the tax assessed against 
 said producer shall be allowed equivalent to 55 cents per proof gallon 
 of brandy contained in said spirits at the time of redistillation,, which 
 amount of brandy shall be ascertained by the Commissioner of In- 
 ternal Eevenue, under regulations approved by the Secretary of the 
 Treasury, and wine spirits so recovered may be used in the manner 
 provided by law for the fortification of other wine : Provided, That 
 such wine spirits on which abatement or refund of tax is allowed 
 shall not exceed the total amount of alcohol in such wine over and 
 above fourteen per centum thereof." 
 
 That section three and section six of the act of June seventh, nine- 
 teen hundred and six, amending the laws relating to the fortification 
 of pure sweet wines, are hereby amended to read as follows: 
 
 " Sec. 3. That the Commissioner of Internal Eevenue is hereby 
 authorized to assign at each Avinery where wines are to be fortified 
 such number of gangers or storekeeper gaugers, in the capacity of 
 gaugers, for special duties as may be necessary for the proper super- 
 vision of the making and fortifying of such wines, and the compensa- 
 tion of such officers shall not exceed $5 per diem while so assigned, 
 together with their actual and necessary traveling expenses, and also 
 a reasonable allowance for their board bills, to be fixed by the Com- 
 missioner of Internal Eevenue, but not to exceed $2 per diem for said 
 board bills. That bonds hei-eafter given under the provisions of the 
 aforesaid Act of October first, eighteen himdred and ninety, as 
 amended, shall be conditioned for the payment of the tax on all 
 brandy removed thereunder and not used and accounted for within 
 the time and in the manner required by law and regulations, and for 
 the payment of all taxes imposed on the brandy so withdrawn and 
 used for fortifications; and the said bonds shall contain such other 
 conditions as the Commissioner of Internal Eevenue, with the ap- 
 proval of the Secretary of the Treasury, may by regulation prescribe. 
 
 " Sec. 6. Tliat any person who by any process recovers from wines 
 Digitized by Iwicrosort® 
 
APPENDIX. 769 
 
 fortified under the proTisions of the aforesaid act approved October 
 first, eighteen hundred and ninety, as amendments thereto, any 
 brandy or wine spirits used in the manufacture or fortification of 
 said wine, otherwise than is provided for in said act and its amend- 
 ments, or who shall rectify, mix, or compound with distilled spirits 
 or other materials, except as provided in this act, such grape brandy, 
 fortified wines or wine spirits unlawfully recovered therefrom, shall, 
 on conviction, be punished for each offense by a fine of not less than 
 $200 nor more than $1,000. But the provisions of this seie- 
 tion and the provisions of section thirty-two hundred and forty- 
 four of the Revised Statutes of the United States, as amended, 
 relating to rectification, or other internal revenue laws of the United 
 States, shall not be held to apply to or prohibit the mixing or 
 blending of pure sweet wines fortified under the provisions of this 
 act with each other or with other wines: Provided, That the pure 
 sweet wines fortified under the provisions of this act may be used 
 in the manufacture of cordials, liqueurs, and similar compounds on 
 which an internal revenue tax of 24 cents a gallon is imposed, and 
 otherwise the provisions of section thirty-two hundred and forty- 
 four of the Revised Statutes of the United States shall remain in full 
 force and effect." 
 
 Special taxes. 
 
 Sec. 3- That on and after November first, nineteen hundred and 
 fourteen, special taxes shall be, and hereby are, imposed annually as 
 follows, that is to say : 
 
 First. Bankers shall pay $1 for each $1,000 of capital used or 
 employed, and in estimating capital surplus and undivided profits 
 shall be included. The amount of such annual tax shall in all cases 
 be computed on the basis of the capital, surplus, and undivided 
 profits for the preceding fiscal year. Every person, firm, or com- 
 pany, and every incorporated or other bank, having a place of busi- 
 ness where credits are opened by the deposit or collection of money 
 or currency, subject to be paid or remitted upon draft, check, or 
 order, or where money is advanced or loaned on stocks, bonds, bullion, 
 bills of exchange, or promissory notes, or where stocks, bonds, bul- 
 lion, bills of exchange, or promissory notes are received for discount 
 or sale, shall be a banker under this act : Provided, That any postal 
 savings bank, or savings bank having no capital stock, and whose 
 business is confined to receiving deposits and loaning or investing 
 the sanie for the benefit of its depositors, and which does no other 
 business of banking, shall not be subject to this tax. 
 
 Bank whicli, in addition to its banking business, .lets as trustee, re- 
 ceiver, executor, or administrator, or engages in underwriting or pro- 
 moting new enterprises or refinancing old enterprises, or buys and sells 
 securities on its own account for profit, is taxable upon the total amount 
 of its capital, including surplus and undivided profits, unless it be shown 
 that a specific portion of Its capital is used in such other business and 
 that such use does not constitute banking; mere showing that a specific 
 portion of the capital, including surplus and undivided profits, is used 
 in such other business is not alone sufficient to show that such capital 
 is not used in banking. (Fidelity Trust Co., of Baltimore, v. Miles, 258 
 Fed., 770; T. D. 2895.) 
 
 Tax on bankers is constitutional. (Real Estate Title Insurance & 
 Trust Co. V. Lederer, 229 Fed., 799; T. T>. 2306; Anderson v. Farmers 
 Loan & Trust Co., 241 F.ed.,,322; T.. D. 2460^) 
 
 ,„ Digitized By Microsoft® 
 
 140184°— 20 49 ^ ■' 
 
770 
 
 APPENDIX. 
 
 Th& capital, surplus, and undivided profits Of a trust company doing 
 business as banker invested in stoclss, bonds, and securities are treated 
 as used and employed in banking within the meaning of section ; tax im- 
 posed is upon so much thereof as is used in the banking business 
 (Anderson v. Farmers Loan & Trust Co., 241 Fed., 322; T. D. 2460.) 
 
 Instructions as to the preparation of special bankers' lists. (T D. 
 2045. ) 
 
 Method of arriving at undivided profits to be entered into the basis 
 upon which tax on bankers is to be computed. (T. D. 2064.) 
 
 Basis upon which special tax imposed on bankers shall be computed 
 defined. (T. D. 2125.) 
 
 Character of investment has no bearing upon question of amount in- 
 vested ; can not be said as matter of law that capital, surplus, or un- 
 divided profits can be- segregated from bank's other assets. (Real Estate 
 Title, Insurance & Trust Co. v. Lederer, 229 Fed., 799; T. D. 2306.) 
 
 Bank which, in addition to main business of examining and insuring 
 real estate titles, carried on savings bank business, which it kept sepa- 
 rate from its other business, was not taxable upon the total amount of 
 capital, surplus and undivided profits used in the insurance business, 
 amount used in banking business as such only being subject to tax. Title 
 Guarantee & Trust Co. v. Miles, 258 Fed., 771.) 
 
 Second. Brokers shall pay $30. Every person, firm, or company, 
 whose business it is to negotiate purchases or sales of stocks, bonds, 
 exchange, bullion, coined money, bank notes, promissory notes, or 
 other securities, for themselves or others, shall be regarded as a 
 broker : Provided, That any person having paid the special tax as a 
 banker shall not be required to pay the special tax as a broker. 
 
 Special tax liability as broker is not incurred on account of a person 
 negotiating purchases of stocks, bonds, etc., solely for himself. (T. D. 
 2263.) 
 
 Third. Pawnbrokers shall pay $50. Every person, firm, or com- 
 pany whose business or occupation it is to take or receive, by way of 
 pledge, pawn, or exchange, any goods, wares, or merchandise, or any 
 kind of personal property whatever, as security for the repayment 
 of money loaned thereon, shall be deemed a pawnbroker. 
 
 Fourth. Commercial brokers shall pay $20. Every person, firm, 
 or company whose business it is as a broker to negotiate sales or 
 purchases of goods, wares, produce, or merchandise, or to negotiate 
 freights and other business for the owners of vessels, or for the ship- 
 pers or consignors or consignees of freight carried by vessels, shall be 
 regarded as a commercial broker under this act. 
 
 Real estate .agents engaged in negotiating upon a commission pur- 
 chases and sales of real estate, collecting rents, etc., do not incur lia- 
 bility as brokers. (T. D. 2083.) 
 
 Special tax in case of local agents, sales representatives, and others 
 operating on a commission basis; commission merchants. (T. D. 2107.) 
 
 Fifth. Custom-house brokers shall pay $10. Every person, firm, 
 or company whose occupation it is, as the agent of others, to arrange 
 entries and other custom-house papers, or transact business at any 
 port of entry relating to the importation or exportation of goods, 
 wares, or merchandise, shall be regarded as a custom-house broker. 
 
 Person or firm holding himself or itself out to the public as a custom- 
 house broker is required to pay tax. (T. D. 2321.) 
 
 Sixth. Proprietors of theaters, museums, and concert halls, where 
 a charge for admission is made, having a seating capacity of not 
 more than two hundred and fifty, shall pay $25; having a seating 
 capacity of more than two hundred and fifty and not exceeding five 
 hundred, shall pay $^QA/^^a^^S 4(||f|^^ capacity exceeding five 
 
APPENDIX. 771 
 
 hundred and not exceeding eight hundred, shall pay $75; having a 
 seating capacity of more than eight hundred, shall pay $100. Every 
 edifice used for the purpose of dramatic or operatic or other repre- 
 sentations, plays, or performances, for admission to which entrance 
 money is received, not including halls or armories rented or used oc- 
 casionally for concerts or theatrical representations, shall be re- 
 garded as a theater: Provided, That whenever any such edifice is 
 under lease at the passage of this act, the tax shall be paid by the 
 lessee, unless otherwise stipulated between the parties to said lease. 
 
 Motion-picture tlieaters classed as taxable. (T. D. 2040.) 
 
 Special tax liability on account of operation of air domes. (T. D. 
 2217.) 
 
 Proprietors of theatrical troupes traveling with carnival companies 
 required to pay special tax. (T. D. 2223.) 
 
 Penalty where seating capacity is returned as smaller than it actually 
 is; effect of Increasing seating capacity after payment of tax. (T. D. 
 2775.) 
 
 Tax liability where plays or performances are given in hall or armory 
 only occasionally ; liability of owners or agents of theatrical troupes 
 giving performances in halls for which taxes have not been paid by 
 owners or lessees. (T. D. 2314.) 
 
 Seventh. The proprietor or proprietors of circuses shall pay $100. 
 Every building, space, tent, or area where feats of horsemanship or 
 acrobatic sports or theatrical performances not otherwise provided 
 for in this act are exhibited shall be regarded as a circus : Provided, 
 That no special tax paid in one State, Territory, or the District of 
 Columbia shall exempt exhibitions from the tax in another State, 
 Territory, or the District of Columbia, and but one special tax shall 
 be imposed for exhibitions within any one State, Territory, or Dis- 
 trict. 
 
 Special tax liability of circuses stated. (T. D. 2183.) 
 
 Eighth. Proprietors or agents of all other public exhibitions or 
 shows for money not enumerated in this section shall pay $10: 
 Provided, That a special tax paid in one State, Territory, or the 
 District of Columbia shall not exempt exhibitions from the tax in 
 another State, Territory, or the District of Columbia, and but one 
 special tax shall be required for exhibitions within any one State, 
 Territory, or the District of Columbia : Provided further, That this 
 Ijaragraph shaU not apply to Chautauquas, lecture lyceums, agricul- 
 tural or industrial fairs, or exhibitions held under the auspices of 
 religious or charitable associations. 
 
 Exemption of lecture lyceum, with special reference to the Redpath 
 
 Lyceum Bureau. (Kedpath Lyceum Bureau v. Pickering, 251 Fed., 49; 
 
 T. Ds. 2448, 2684.) 
 
 Ninth. Proprietors of bowling alleys and billiard rooms shall pay 
 $5 for each alley or table. Every building or place where bowls are 
 thrown or where games of billiards or pool are played and that are 
 open to the public, with or without price, shall be regarded as a 
 bowling alley or a billard room, respectively. 
 
 Tenth. Commission merchants shall pay $20. Every person, firm, 
 or company whose business or occupation it is to receive into his or 
 its possession any goods, wares, or merchanidse to sell the same on 
 commission shall be regarded as a commission merchant: Provided, 
 That any person having paid the special tax as a commercial broker 
 shall not be required to pay the special tax as a commission merchant : 
 
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772 APPENDIX, 
 
 Provided further, That this provision shall not apply to commission 
 houses run upon a cooperative plan. 
 
 Schedule of articles and occupations subject to tax, (T. D. 2035.) 
 
 Special tax returns to be rendered. (T. D. 2039.) 
 
 Digest of rulings under war-revenue act of June 13, 1898, identical 
 with, or essentially similar to, the special-tax provision of this act, 
 published for convenience in construing. (T. D. 2046.) 
 
 Liability as commission merchants of the customers of various firms 
 through their method of handling goods of these firms, (T. D. 2084.) 
 
 Special tax as commercial broker or commission merchant. (T. D, 
 2107.) 
 
 Tax liability of leaf-tobacco dealers making sales of leaf tobacco for 
 others on commission. (T, D. 2296.) 
 
 Tobacco dealers and mannfactnTCis. 
 
 Sec. 4. That on and after November first, nineteen hundred and 
 fourteen, special taxes on tobacco dealers and manufacturers shall be 
 and hereby are imposed annually as follows, the amount of such 
 annual taxes to be computed in all cases on the basis of the annual 
 sales for the preceding fiscal year : 
 
 Dealers in leaf tobacco whose annual sales or transfers do not 
 exceed fifty thousand pounds shall each pay $6. Dealers in leaf 
 tobacco whose annual sales or transfers exceed fifty thousands and do 
 not exceed one hundred thousand pounds shall pay $12, and if their 
 annual sales or transfers exceed one hundred thousand pounds shall 
 pay $24: Provided, That dealers in leaf tobacco whose annual sales 
 or transfers do not exceed one thousand pounds shall be exempt from 
 the tax herein imposed on dealers in leaf tobacco. 
 
 Dealers in tobacco, not specially provided for in this section, whose 
 annual receipts from the sale of tobacco exceed $200, shall each pay 
 $4.80 for each store, shop, or other place in which tobacco in any 
 form is sold. 
 
 Every person wnose business it is to sell, or offer for sale, manu- 
 factured tolbacco, snuff, cigars, or cigarettes shall be regarded as a 
 dealer in tobacco : Provided, That no manufacturer of tobacco, snuff, 
 cigars, or cigarettes shall be required to pay a special tax as a dealer 
 in manufactured tobacco, snuff, cigars, or cigarettes for selling his 
 own products at the place of manufacture. 
 
 Manufacturers of tobacco whose annual sales do not exceed one 
 hundred thousand pounds shall each pay $6. 
 
 Manufacturers of tobacco whose annual sales exceed one hundred 
 thousand and do not exceed two hundred thousand pounds shall each 
 pay $12. 
 
 Manufacturers of tobacco whose annual sales exceed two hundred 
 thousand and do not exceed four hundred thousand pounds shall 
 each pay $24. 
 
 Manufacturers of tobacco whose annual sales exceed four hundred 
 thousand and do not exceed one million pounds shall each pay $60._ 
 
 Manufacturers of tobacco whose annual sales exceed one million 
 and do not exceed five million pounds shall each pay $300. 
 
 Manufacturers of tobacco whose annual sales exceed five million 
 and do not exceed ten million pounds shall each pay $600. 
 
 Manufacturers of tobacco wh(Jse annual sales exceed ten million 
 and do not exceed twenty million pounds shall each pay $1,200. 
 
 Manufacturers of tobacco whose annual sales exceed twenty million 
 pounds shall each pajD^'^l^sf by Microsoft® 
 
APPENDIX. 773 
 
 Manufacturers of cigars whose annual sales do not exceed one 
 hundred thousand cigars shall each pay $3. 
 
 Manufacturers of cigars whos6 annual sales exceed one hundred 
 thousand and do not exceed two hundred thousand cigars shall each 
 pay $6. 
 
 Manufacturers of cigars whose annual sales exceed two hundred 
 thousand and do not exceed four hundred thousand cigars shall each 
 pay $12. 
 
 Manufacturers of cigars whose annual sales exceed four hundred 
 thousand and do not exceed one million cigars shall each pay $30. 
 
 Manufacturers of cigars whose annual sales exceed one million 
 and do not exceed five million cigars shall each pay $150. 
 
 Manufacturers of cigars whose annual sales exceed five million and 
 do not exceed twenty million cigars shall each pay $600. 
 
 Manufacturers of cigars whose annual sales exceed twenty million 
 and do not exceed forty million cigars shall each pay $1,200. 
 
 Manufacturers of cigars whose annual sales exceed forty million 
 cigars shall each pay $2,496. 
 
 Manufacturers of cigarettes whose annual sales do not exceed one 
 million cigarettes shall each pay $12. 
 
 Manufacturers of cigarettes whose annual sales exceed one million 
 and do not exceed two million cigarettes shall each pay $24. 
 
 Manufacturers of cigarettes whose annual sales exceed two million 
 and do not exceed five million cigarettes shall each pay $60. 
 
 Manufacturers of cigarettes whose annual sales exceed five million 
 and do not exceed ten million cigarettes shall each pay $120. 
 
 Manufacturers of cigarettes whose annual sales exceed ten million 
 and do not exceed fifty million cigarettes shall each pay $600. 
 
 Manufacturers of cigarettes whose annual sales exceed fifty million 
 and do not exceed one hundred million cigarettes shall each pay 
 $1,200. 
 
 Manufacturers of cigarettes whose annual sales exceed one hundred 
 million cigarettes shall each pay $2,496. 
 
 In arriving at the amount of license tax to be paid hereunder, and 
 in the levy and collection of such tax each person, firm, or corpora- 
 tion engaged in the manufacture of cigars, cigarettes (including 
 little cigars), or tobacco shall be considered and deemed a single 
 manufacturer. 
 
 Annual inventories to be made by cigar and tobacco manufacturers 
 and verified by collectors and their deputies. (T. D. 2057.) 
 
 Regulations and Information as to certain requirements, together with 
 synopsis of decisions made under the act of June 13, 1898, which will 
 be given weight in determining similar questions arising under this 
 act. (T. D. 2061.) 
 
 Penalty. 
 
 And every person who carries on any business or occupation for 
 which special taxes are imposed by this act, without having paid the 
 special tax herein provided, shall, besides being liable to the payment 
 of such special tax, be deemed guilty of a misdemeanor, and upon con- 
 viction thereof shall pay a fine of not more than $500, or be impris- 
 oned not more than six months, or both, at the discretion of the court : 
 Provided^ That the special taxes imposed by this act and payable 
 during the special tax year ending June thirtieth, nineteen hundred 
 and sixteen, shall be collected and paid proportionately for the period 
 during which such t&M§\^%Vi ^xM^SPlSSlmcce during said year. 
 
774 APPENDIX. 
 
 Adhesive stamps; tax on instruments. 
 
 Sec. 5. That on and after the first day of December, nineteen hun- 
 dred and fourteen, there shall be levied, collected, and paid, for and 
 in respect of the several bonds, debentures, or certificates of stock and 
 of indebtedness, and other documents, instruments, matters, and 
 things mentioned and described in Schedule A of this act, or for or in 
 respect of the vellum, parchment, or paper upon which such instru- 
 ments, matters, or things, or any of them, shall be written or printed 
 by any person or persons, or party who shall make, sign, or issue the 
 same, or for whose use or benefit the same shall be made, signed, or 
 issued, the several taxes or sums of money set down in figures against 
 the same, respectively, or otherwise specified or set forth in the said 
 schedule. 
 
 Powers or letters of attorney authorizing attorneys to represent cred- 
 itors in bankruptcy proceedings, etc., must bear stamps, even though 
 powers or letters are unnecessary. (In re Capitol Trading Co., Inc., 229 
 Fed., 806.) 
 
 Order approving bond of trustee in bankruptcy must be stamped. (In 
 re Hawley, 220 Fed., 372.) 
 
 Tax must be paid on certificates of shares issued by manufacturing 
 company organized in form of trust under common law and which was 
 not an ordinary common law real estate trust. (Malley v. Bowditch, 259 
 Fed., 809.) 
 
 This section is not invalid in its application to manufacturing com- 
 pany organized as a trust at common law, on theory that it was inap- 
 plicable to other associations. (Id.) 
 
 Taxes under Schedule B. 
 
 And there shall also be levied, collected, and paid, for and in re- 
 spect to the preparations, matters, and things mentioned and de- 
 scribed in Schedule B of this act, manufactured, sold, or removed 
 for sale, the several taxes or sums of money set down in words or 
 figures against the same, respectively, or otherwise specified or set 
 forth in Schedule B of this act. 
 
 Fenaltj. 
 
 Sec. 6. That if any person or persons shall make, sign, or issue, or 
 cause to be made, signed, or issued, any instrument, document, or 
 paper of any kind or description whatsoever, without the same being 
 duly stamped for denoting the tax hereby imposed thereon, or with- 
 out having thereupon an adhesive stamp to denote said tax, such 
 person or persons shall be deemed guilty of a misdemeanor, and upon 
 conviction thereof shall pay a fine of not more than $100, at the dis- 
 cretion of the court. 
 
 Counterfeiting stamps; selling forged stamps; rcmoTing and Tensing stamps; penalties. 
 
 Sec. 7. That if any person shall forge or counterfeit, or cause or 
 procure to be forged or counterfeited, any stamp, die, plate, or other 
 instrument, or any part of any stamp, die, plate, or other instrument, 
 which shall have been provided, or may hereafter be provided, made, 
 or used in pursuance of this act, or shall forge, counterfeit, or resem- 
 ble, or cause or procure to be forged, counterfeited, or resembled, the 
 impression, or any part of the impression, of any such stamp, die, 
 plate, or other instrument, as aforesaid, upon any vellum, parchment, 
 or paper, or shall stamp or mark, or cause or procure to be stamped 
 or marked, any vellum, parchment, or leaner with any such forged or 
 ' -^ digitized by l^icrosoTt® 
 
APPENDIX. 775 
 
 counterfeit stamp, die, plate, or other instrument, or part of any 
 stamp, die, plate, or other instrument, as aforesaid, with intent to 
 defraud the United States of any of the taxes hereby imposed, or any 
 part thereof ; or if any person shall utter, or sell, or expose for sale, 
 any vellum, parchment, paper, article, or thing having thereupon the 
 impression of any such counterfeited stamp, die, plate, or other in- 
 strument, or any part of any stamp, die, plate, or other instrument, 
 or any such forged, counterfeited, or resembled impression, or part 
 of impression, as aforesaid, knowing the same to be forged, counter- 
 feited, or resembled; or if any person shall knowingly use or permit 
 the use of any stamp, die, plate, or other instrument, which shall 
 have been so provided, made, or used as aforesaid, with intent to 
 defraud the United States; or if any person shall fraudulently cut, 
 tear, or remove, or cause or procure to be cut, torn, or removed, the 
 impression of any stamp, die, plate, or other instrument which shall 
 have been provided, made, or used in pursuance of this act from any 
 vellum, parchment, or paper, or any instrument or writing charged 
 or chargeable with any of the taxes imposed by law ; or if any person 
 shall fraudulently use, join, fix, or place, or cause to be used, joined, 
 fixed, or placed, to, with, or upon any vellum, parchment, paper, or 
 any instrument or writing charged or chargeable with any of the 
 taxes hereby imposed, any adhesive stamp, or the impression of any 
 stamp, die, plate, or other instrument, which shall hare been pro- 
 vided, made, or used in pursuance of law, and which shall have been 
 cut, torn, or removed from any other vellum, parchment, or paper, 
 or any instrument or writing charged or chargeable with any of the 
 taxes imposed by law; or if any person shall willfully remove or 
 cause to be removed, alter or cause to be altered, the canceling or 
 defacing marks of any adhesive stamp with intent to use the same, 
 or to cause the use of the same, after it shall have been once used, 
 or shall knowingly or willfully sell or buy such washed or restored 
 stamps, or offer the same for sale, or give or expose the same to any 
 person for use, or knowingly use the same, or prepare the same with 
 intent for the further use thereof; or if any person shall knowingly 
 and without lawful excuse (the proof whereof shall lie on the per- 
 son accused) have in his possession any washed, restored, or altered 
 stamp which has been removed from any vellum, parchment, paper, 
 instrument, or writings then, and in every such case, every person so 
 oifending, and every person knowingly and willfully aiding, abet- 
 ting, or assisting in committing any such offenses as aforesaid shall 
 be deemed guilty of a misdemeanor, and, upon conviction thereof, 
 shall forfeit the said counterfeit stamps and the articles upon which 
 they are placed, and shall be punished by fine not exceeding $1,000, 
 .or by imprisonment and confinement at hard labor not exceeding 
 five years, or both, at the discretion of the court. 
 
 Cancellation of stamps; penalty. 
 
 'Sec. 8. That in any and all cases where an adhesive Stamp shall 
 be used for denoting any tax imposed by this act, except as herein- 
 after provided, the person using or affixing the same shall write or 
 stamp thereupon the initials of his name and the date upon which 
 the same shall be attached or used, so that the same may not again 
 be used. And if any person shall fraudulently make use of an ad- 
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 APPENDIX. 
 
 hesive stamp to denote any tax imposed by this act without so 
 effectually canceling and obliterating such stamp, except as before 
 mentioned, he, she, or they shall be deemed guilty of a misdemeanor, 
 and upon conviction thereof shall pay a fine of not exceeding $500, 
 or be imprisoned not more than six months, or both, at the discre- 
 tion of the court : Provided, That instead of cancellation by initials 
 and date, the stamps on the articles enumerated in Schedule B shall 
 be so affixed on the box, bottle, or package that in opening the same, 
 or using the contents thereof, the said stamp shall be effectually 
 destroyed ; and in default thereof the party making default shall be 
 liable to the same penalty imposed for neglect to affix said stamp as 
 hereinbefore prescribed in this act. 
 
 Persons Issuing promissory note unstamped; penalty. 
 
 Sec. 9. That if any person or persons shall make, sign, or issue, or 
 cause to be made, signed, or issued, or shall accept or pay, or cause 
 to be accepted or paid, with design to evade the payment of any 
 stamp tax, any promissory note liable to any of the taxes imposed 
 by this act, without the same being duly stamped, or having there- 
 upon an adhesive stamp for denoting the tax thereby charged there- 
 on, he, she, or they shall be deemed guilty of a misdemeanor, and 
 upon conviction thereof shall be punished by a fine not exceeding 
 $200, at the discretion of the court. 
 
 Collectors to farnish stamps; regulations. 
 
 Sec. 10. That the collectors of the several districts are hereby 
 autliorized and required to furnish to any assistant treasurer of the 
 United States or designated depositary thereof, or any postmaster 
 located in their collection districts, respectively, a suitable quantity 
 of adhesive stamps, without prepayment therefor, and may in ad- 
 vance require of any designated depositary, assistant treasurer of the 
 United States, or postmaster a bond, with sufficient sureties, to an 
 amount equal to the value of the adhesive stamps which may be 
 placed in his hands and remain unaccounted for, conditioned for the 
 faithful return, whenever so required, of all quantities or amounts 
 undisposed of, and for the payment monthly of all quantities or 
 amounts sold or not remaining on hand. And it shall be the duty of 
 such collectors to supply their deputies with, or sell to other parties 
 within their respective districts who may make application therefor, 
 adhesive stamps, upon the same terms allowed by law or under the 
 regulations of the Commissioner of Internal Revenue, who is hereby 
 authorized to make such other regulations, not inconsistent herewith, 
 for the security of the United States and the better accommodation 
 of the public, in relation to the matters hereinbefore mentioned, as 
 he may judge necessary and expedient. And the Secretary of the 
 Treasury may from time to time make such regulations as he may 
 find necessary to insure the safe-keeping or prevent the illegal use of 
 all such adhesive stamps. 
 
 Persons registering, Issuing, etc., any instruments, documents, etc., ivltliout stamp; penalty; 
 
 validating Instruments. 
 
 Sec. 11. That any person or persons who shall register, issue, sell, 
 or transfer, or who shall cause to be issued, registered, sold, or trans- 
 ferred, any iiistrumenfe^fd^am^ftW/WnegiB® of any kind or descrip- 
 
APPENDIX. '7'77 
 
 tion whatsoever mentioned in Schedule A of this act, without the 
 same being duly stamped, or having thereupon an adhesive stamp 
 for denoting the tax chargeable thereon, and canceled in the manner 
 required by law, with intent to evade the provisions of this act, shall 
 be deemed ^ilty of a misdemeanor, and upon conviction thereof 
 shall be punished by a fine not exceeding $50, or by imprisonment not 
 exceeding six months, or both, in the discretion of the court: Pro- 
 vided, That hereafter, in all cases where the party has not aiExed to 
 any instrument the stamp required by law thereon at the time of issu- 
 ing, selling, or transferring the said bonds, debentures, or certificates 
 of stock or of indebtedness, and he or they, or any party having an 
 interest therein, shall be subsequently desirous of affixing such stamp 
 to said instrument, or, if said instrument be lost, to a copy thereof, 
 he or they shall appear before the collector of internal revenue of the 
 proper district, who shall, upon the payment of the price of the 
 proper stamp required by law, and of a penalty of $10, and, where 
 the whole amount of the tax denoted by the stamp required shall 
 exceed the sum of $50, on payment also of interest at the rate of six 
 per centum on said tax from the day on which such stamp ought to 
 have been affixed, affix the proper stamp to such bond, debenture, 
 certificate of stock or of indebtedness or copy, and note upon the 
 margin thereof the date of his so doing, and the fact that such 
 penalty has been paid ; and the same shall thereupon be deemed and 
 held to be as valid, to all intents and purposes, as if stamped when 
 made or issued : And provided further, That where it shall apear to 
 said collector, upon oath or otherwise, to his satisfaction, that any 
 such instrument has not been duly stamped, at the time of making 
 or issuing the same, by reason of accident, mistake, inadvertence, 
 or urgent necessity, and without any willful design to defraud the 
 United States of the stamp, or to evade or delay the payment thereof, 
 then and in such case, if such instrument, or, if the original be lost, 
 a copy thereof, duly certified by the officer having charge of any 
 records in which such original is required to be recorded, or otherwise 
 duly proven to the satisfaction of the collector, shall, within twelve 
 calendar months after the making or issuing thereof, be brought to 
 the said collector of internal revenue to be stamped, and the stamp 
 tax chargeable thereon shall be paid, it shall be lawful for the said 
 collector to remit the penalty aforesaid and to cause such instru- 
 ment to be duly stamped. And when the original instrument, or a 
 certified or duly proven copy thereof, as aforesaid, duly stamped so 
 as to entitle the same to be recorded, shall be presented to the clerk, 
 register, recorder, or other officer having charge of the original rec- 
 ord, it shall be lawful for such officer, upon the payment of the fee 
 legally chargeable for the recording thereof, to make a new record 
 thereof, or to note upon the original record the fact that the error 
 or omission in the stamping of said original instrument has been cor- 
 rected pursuant to law ; and the original instrument or such certified 
 copy, or the record thereof, may be used in all courts and places in 
 the same manner and with like effect as if the instrument had been 
 originally stamped : And provided further, That in all cases where 
 the party has not affixed the stamp required by law upon any such 
 instrument issued, registered, sold, or transferred at a time when and 
 at a place where no collection district was established, it shall be 
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 APPENDIX. 
 
 lawful for him or them, or any party having an interest therein to 
 affix the proper stamp thereto, or, if the original be lost, to a copy 
 thereof. But no right acquired in good faith before the stamping of 
 such instrument, or copy thereof, as herein provided, if such record 
 be required by law, shall in any manner be affected by such stamping 
 as aforesaid. 
 
 Instrnment not to Ibo recorded if unstamped ; Ibonds, etc., issned in foreign countries to bo stamped. 
 
 Sec. 12. That hereafter no instrument, paper, or document re- 
 quired by law to be stamped, which has been signed or issued with- 
 out being duly stamped, or with a deficient stamp, nor any copy 
 thereof, shall be recorded until a legal stamp or stamps, denoting the 
 amount of tax, shall have been affixed thereto, as prescribed by law : 
 Provided, That any bond, debenture, certificate of stock, or certifi- 
 cate of indebtedness issued in any foreign country shall pay the 
 same tax as is required by law on similar instruments when issued, 
 sold, or transferred in the United States ; and the party to whom the 
 same is issued, or by whom it is sold or transferred, shall, before 
 selling or transferring the same, affix thereon the stamp or stamps 
 indicating the tax required. 
 
 Issue of 2-j-ear 6 per cent Treasury notes by Swedish Government in 
 the amount of $5,000,000 exempt from tax on promissory notes. (T. D. 
 2180.) 
 
 Not laTrful to record instruments until stamped. 
 
 Sec. 13. That it shall not be lawful to record or register any in- 
 strument, paper, or document required by law to be stamped unless a 
 stamp or stamps of the proper amount shall have been affixed and 
 canceled in the manner prescribed by law. 
 
 Deeds delivered on and after December 1, 1914, must be stamped. 
 Registers and recorders are required to talie notice that instruments are 
 stamped before acceptance for record. (T. D. 2042.) 
 
 Instrnment not Inralid on account of absence of particular denomination of stamp. 
 
 Sec. 14. That no instrument, paper, or document required by law 
 to be stamped shall be deemed or held invalid and of no effect for the 
 want of a particular kind or description of stamp designated for and 
 denoting the tax charged on any such instrument, paper, or docu- 
 ment, provided a legal documentary stamp or stamps denoting a tax 
 of equal amount shall have been duly affixed and used thereon. 
 
 Exemptions. 
 
 Sec. 15. That all bonds, debentures, or certificates of indebtedness 
 issued by the officers of the United States Government, or by the 
 officers of any State, county, town, municipal corporation, or other 
 corporation exercising the taxing power, shall be, and hereby are, 
 exempt from the stamp taxes required by this act: Provided, That 
 it is the intent hereby to exempt from the stamp taxes imposed by 
 this act such State, county, town, or other municipal corporations 
 in the exercise only of functions strictly belonging to them in their 
 ordinary governmental, taxing, or municipal capacity: Provided 
 further, That stock and bonds issued by cooperative building and 
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APPENDIX, 779 
 
 loan associations, mutual ditch or irrigating companies, and build- 
 ing and loan associations or companies that make loans only to their 
 shareholders, shall be exempt from the tax herein provided. 
 
 The exemption of cooperative building and loan associations extends 
 only to stocks and bonds issued by such associations or companies. 
 (T. D. 2044.) 
 
 Transfers of stock of building and loan associations not subject to tax ; 
 notes given by or to such associations taxable. (T. D. 2112.) 
 
 Issue of 2-year 6 per cent Treasury notes by Swedish Government 
 in the amount of $5,000,000 exempt from tax on promissory notes. 
 (T. D. 2180.) 
 
 FroTlgions as to dies and stamps appllcatile to Schednio B. 
 
 Sec. 16. That all the provisions of this act relating to dies, stamps, 
 adhesive stamps, and stamp taxes shall extend to and include (ex- 
 cept where manifestly inapplicable) all the articles or objects enu- 
 merated in Schedule B, subject to stamp taxes, and apply to the pro- 
 visions in relation thereto. 
 
 When Schedule B takes effect; penalty. 
 
 Sec. 17. That on and after December first, nineteen hundred and 
 fourteen, any person, firm, company, or corporation that shall make, 
 prepare, and sell, or remove for consumption or sale, perfumery, 
 cosmetics, preparations, compositions, articles, or things upon which 
 a tax is imposed by this act, as provided for in Schedule B, without 
 affixing thereto an adhesive stamp or label denoting the tax before 
 mentioned shall be deemed guilty of a misdemeanor, and upon con- 
 viction thereof shall pay a fine of not more than $500, or be impris- 
 oned not more than six months, or both, at the discretion of the 
 court. 
 
 When tax effective. (T. D. 2038.) 
 
 BemoTlng stamps, rcasing wrappers, etc; penalty. 
 
 Sec. 18. That any manufacturer or maker of any of the articles 
 for sale mentioned in Schedule B, after the same shall have been so 
 made, and the particulars hereinbefore required as to stamps have 
 been complied with, or any other person who shall take off, remove, 
 or detach, or cause, or permit, or suffer to be taken off, or removed 
 or detached, any stamp, or who shall use any stamp, or any wrapper 
 or cover to which any stamp is affixed, to cover any other article or 
 commodity than that originally contained in such wrapper or cover, 
 with such stamp when first used, with the intent to evade the stamp 
 duties, shall for every such article, respectively, in respect of which 
 any such offense shall be committed, be deemed guilty of a misde- 
 meanor, and upon conviction thereof shall pay a fine of not more 
 than $500, or be imprisoned not more than six months, or both, at 
 the discretion of the court, and every such article or commodity as 
 aforesaid shall also be forfeited. 
 
 Articles In Schedule B; sending out hcfore affixing stamps; penalty. 
 
 Sec. 19. That any maker or manufacturer of any of the articles or 
 commodities mentioned in Schedule B, as aforesaid, or any other 
 person who shall sell, send out, remove, or deliver any article or com- 
 modity, manufactured as aforesaid, before the tax thereon shall have 
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780 
 
 APPENDIX. 
 
 been fully paid by affixing thereon the proper stamp, as in this act 
 provided, or who shall hide or conceal, or cause to 'be hidden or con- 
 cealed, or who shall remove or convey away, or deposit, or cause to 
 be removed or conveyed away from or deposited in any place, any 
 such article or commodity, to evade the tax chargeable thereon, or 
 any part thereof, shall be deemed guilty of a misdemeanor, and upon 
 conviction thereof shall pay a fine of not more than $500, or be im- 
 prisoned not more than six months, or both, at the discretion of the 
 court, together with the forfeiture of any such article or commodity. 
 
 Regulations relative to perfumery, cosmetics, chewing gum, etc. (T. D. 
 2063 ; see also T. D. 2108. ) 
 
 Penalty for selling or offering for sale unstamped articles subject to 
 tax. (T. D. 2118.) 
 
 Articles for oxportatloB. 
 
 Provided, That articles upon which stamp taxes are required by 
 this act may, when intended for exportation, be manufactured and 
 sold or removed without having stamps affixed thereto, and without 
 being charged with tax as aforesaid; and every manufacturer or 
 maker of any article as aforesaid, intended for exportation, shall 
 give such bonds and be subject to such rules and regulations to pro- 
 tect the revenue against fraud as may be from time to time pre- 
 scribed by the Commissioner of Internal Eevenue, with the approval 
 of the Secretary of the Treasury. 
 
 Declaration In irrltlng to ]be filed -wKb collector monthly ; penalt;. 
 
 Sec. 20. That every manufacturer or maker of any of the articles 
 or commodities provided for in Schedule B, or his foreman, agent, or 
 superintendent shall at the end of each and every month make, si^, 
 and file with the collector of internal revenue for the district in which 
 he resides a declaration in writing that no such article or commodity 
 has, during such preceding month or time when the last declaration 
 was made, been removed, or carried, or sent, or caused or suffered or 
 known to have been removed, carried, or sent from the premises of 
 such manufacturer or maker other than such as have been duly taken 
 account of and charged with the stamp tax, on pain of such manufac- 
 turer or maker forfeiting for every refusal or neglect to make such 
 declaration $100 ; and if any such manufacturer or maker, or his fore- 
 man, agent, or superintendent, shall make any false or untrue decla- 
 ration, such manufacturer or maker, or foreman, agent, or super- 
 intendent making the same shall be deemed guilty of a misde- 
 meanor, and upon conviction shall pay a fine of not more than 
 $500, or be imprisoned not more than six months, or both, at the dis- 
 cretion of the court. 
 
 Definition of mannfactnrer. 
 
 Sec. 21. That the stamp taxes prescribed in this act on the articles 
 provided for in Schedule B shall attach to all such articles and things 
 sold or removed for sale thirty days after the approval of this act. 
 Every person, except as otherwise provided in this act, who offers 
 or exposes for sale any article or thing provided for in said Schedule 
 B, whether the article so offered or exposed is of foreign manufacture 
 and imiwrted or of domestic manufacture, shall be deemed the manu- 
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APPENDIX. 781 
 
 facturer thereof, and shall be subject to all the taxes, liabilities, and 
 penalties imposed by law for the sale of articles without the use of 
 the proper stamp denoting the tax paid thereon ; and all such articles 
 of foreign manufacture shall, in addition to the import duty imposed 
 on the same, be subject to the stamp tax prescribed in this act. 
 When tax effective. (T. D. 2038.) 
 
 Stamps on Imported merehandiBe. 
 
 Provided fu-rthet\ That internal revenue stamps required by exist- 
 ing law on imported merchandise shall be affixed thereto and can- 
 celed at the expense of the owner or importer before the withdrawal 
 of such merchandise for consumption, and the Secretary of the Treas- 
 ury is authorized to make such rules and regulations as may be neces- 
 sary for the affixing and canceling of such stamps, not inconsistent 
 herewith. 
 
 stamps to lie prepared; disconnt. 
 
 Sec, 22. That the Commissioner of Internal Eevenue shall ca,use 
 to be prepared and distributed for the payment of the taxes pre- 
 scribed in this act suitable stamps denoting the tax on the docimient, 
 article, or thing to which the same may be affi:xed, and he is author- 
 ized to prescribe such method for the cancellation of said stamps, as 
 substitute for or in addition to the method provided in this act, aa 
 he may deem expedient. The Commissioner of Internal Eevenue, 
 with the approval of the Secretary of the Treasury, is authorized to 
 procure any of the stamps provided for in this act by contract when- 
 ever such stamps can not be speedily prepared by the Bureau of 
 Engraving and Printing; but this authority shall expire on the first 
 day of November, nineteen hundred and fifteen, except as to im- 
 printed stamps furnished under contract, authorized by the Com- 
 missioner of Internal Eevenue. That the adhesive stamps used in 
 the payment of the tax levied in Schedules A and B of this act shall 
 be furnished for sale by the several collectors of internal revenue, 
 who shall sell and deliver them at their face value to all persons 
 applying for the same, except officers or employees of the Intemal- 
 Ee venue Service: Provided, That such collectors may sell and deliver 
 such stamps in quantities of not less than $100 of face value, with 
 a discount of one per centum, except as otherwise provided in this act. 
 
 Postmasters and others Jiuthorized to be furnished stamps without 
 prepayment not allowed discount unless stamps are paid for by them 
 at the time. (T. D. 2055.) 
 
 ScHEDUXJE A. 
 Stamp taxei. 
 
 Bonds, debentures, or certificates of indebetedness issued on and 
 after the first day of December, nineteen hundred and fourteen, by 
 any association, company, or corporation, on each $100 of face value 
 or fraction thereof, 5 cents, and on each original issue, whether on 
 organization or reorganization, of certificates of stock by any such 
 association, company, or corporation, on each $100 of face value or 
 fraction thereof, 5 cents, and on all sales, or agreements to sell, or 
 memoranda of sales or deliveries or transfers of shares or certificates 
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 APPENDIX. 
 
 of stock in any association, company, or corporation, whether made 
 upon or shown by the books of the association, company, or corpo- 
 ration, or by any assignment in blank, or by any delivery, or by any 
 paper or agreement or memorandum or other evidence of transfer or 
 sale, whether entitling the holder in any manner to the benefit of such 
 stock, or to secure the future payment of money or for the future 
 transfer of any stock, on each $100 of face value or fraction thereof, 
 2 cents : Provided, That it is not intended by this act to impose a 
 tax upon an agreement evidencing a deposit of stock certificates as 
 collateral security for money loaned thereon, which stock certificates 
 are not actually sold, nor upon such stock certificates so deposited: 
 Provided further, That in cjase of sale where the evidence of trans- 
 fer is shown only by the books of the company the stamp shall be 
 placed upon such books; and where the change of ownership is by 
 transfer certificate the stamp shall be placed upon the certificate; 
 and in cases of an agreement to sell or where the transfer is by 
 delivery of the certificate assigned in blank there shall be made and 
 delivered by the seller to the buyer a bill or memorandum of such 
 sale, to which the stamp shall be affixed ; and every bill or memoran- 
 dum of sale or agreement to sell before mentioned shall show the 
 date thereof, the name of the seller, the amount of the sale, and the 
 matter or tiling to which it refers. And any person or persons liable 
 to pay the tax as herein provided, or anyone who acts in the matter 
 as agent or broker for such person or persons, who shall make any 
 such sale, or who shall in pursuance of any such sale deliver any 
 such stock, or evidence of the sale of any such stock or bill or mem- 
 orandum thereof, as herein required, without having the proper 
 stamps affixed thereto, with intent to evade the foregoing provisions 
 shall be deemed guilty of a misdemeanor, and upon conviction 
 thereof shall pay a fine of not exceeding $1,000, or be imprisoned 
 not more than six months, or both, at the discretion of the court. 
 
 Upon each sale, agreement of sale, or agreement to^ sell, any prod- 
 ucts or merchandise at any exchange, or board of trade, or other simi- 
 lar place, either for present or future delivery, for each $100 in value 
 of said sale or agreement of sale or agreement to sell, 1 cent, and for 
 each additional $100 or fractional part thereof in excess of $100, 
 1 cent : Provided, That on every sale or agreement of sale or agree- 
 ment to sell as aforesaid there shall be made and delivered by the 
 seller to the buyer a bill, memorandum, agreement, or other evidence 
 of such sale, agreement of sale, or agreement to sell, to which there 
 shall be affixed a lawful stamp or stamps in value equal to the amount 
 of the tax on such sale. And every such bill, memorandum, or other 
 evidence of sale or agreement to sell shall show the -date thereof, the 
 name of the seller, th"e amount of the sale, and the matter or thing 
 to which it refers ; and any person or persons liable to pay the tax 
 as herein provided, or anyone who acts in the matter as agent or 
 broker for such person or persons, who shall make any such sale or 
 agreement of sale, or agreement to sell, or who shall, in pursuance 
 of any such sale, agreement of sale, or agreement to sell, deliver 
 any such products or merchandise without a bill, memorandum, or 
 other evidence thereof as herein required, or who shall deliver such 
 bill, memorandum, or other evidence of sale, or agreement to sell, 
 without having the proper stamps affixed thereto, with intent to 
 
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APPENDIX. 783 
 
 evade the foregoing provisions, shall be deemed guilty of a misde- 
 meanor, and upon conviction thereof shall pay a fine of not exceeding 
 $1,000, or be imprisoned not more than six months, or both, at the 
 discretion of the court. 
 
 That no bill, memorandum, agreement, or other evidence of such 
 sale, or agreement of sale, or agreement to sell, in case of products or 
 merchandise actually delivered at the time of sale or while in vessel, 
 boat, or car, and actually in course of transportation, shall be subject 
 to this tax, provided such bill, memorandum, agreement, or other 
 evidence of such sale, or agreement of sale, or agreement to sell shall 
 be accompanied by bills of lading or vouchers, showing that the said 
 j)roducts are actually in course of transportation as aforesaid. 
 
 Transfers of stock certificates, bills of lading, and passage tickets. 
 (T. D. 2073.) 
 
 Sixth paragraph of T. D. 2073, regarding sales and transfers of cer- 
 tificates of stock through brokers, explained. (T. D. 2248.) 
 
 Placing documentary stamps upon certificates of stock exchanged for 
 bonds surrendered. (T, D. 2155.) 
 
 Stamps may be affixed to mortgage securing the original Issue of bonds 
 and notation made on bonds. (T. D. 2164.) 
 
 Affixing documentary stamps to Indentures, explanatory of T. D. 2164. 
 (T. D. 2220.) 
 
 Affixing documentary stamps on account of borrowing and returning 
 certificates of stock. (T. D. 2182.) 
 
 " Gold coupon notes " issued in series by a corporation under the terms 
 and conditions of an indenture of trust are taxable under the first para- 
 graph of Schedule A and not as promissory notes. (T. I>. 22.57.) 
 
 Proper method of affixing documentary stamps upon the transfer of 
 certificates of stock. (T, D. 2275.) 
 
 Tax on s ale of grain on exchange. (Calkins v. Smietanka, 240 Fed., 
 138.) 
 
 Promissory notes, except bank notes issued for circulation, and for 
 each renewal of the same, for a sum not exceeding $100, 2 cents; and 
 for each additional $100 or fractional part thereof in excess of $100, 
 2 cents. 
 
 Clause in promissory notes authorizing confession of judgment is not 
 taxable as a power of attorney. (T. D. 2081. ) 
 
 Policy loan agreements giving merely a right of set-off not subject to 
 tax as promissory notes ; premium extension notes not promissory notes. 
 (T. D. 2097.) 
 
 Coupons of interest notes attached to and forming part of the bond 
 or principal note are not subject to tax as promissory notes, even though 
 they are in the form of promissory notes. (T. D. 2101.) 
 
 Instructions regarding tax on promissory notes. (T. D. 2170.) 
 
 Renewals of promissory notes. (T. D. 2265.) 
 
 Express and freight: It shall be the duty of every railroad or 
 steamboat company, carrier, express company, or corporation or 
 person whose occupation is to act as such, to issue to the shipper or 
 consignor, or his agent, or person from whom any goods are accepted 
 for transportation, where a charge exceeding 5 cents is made, a bill 
 of lading, manifest, or other evidence of receipt and forwarding for 
 each shipment received for carriage and transportation whether in 
 bulk or in boxes, bales, packages, bundles, or not so inclosed or in- 
 cluded; and such shipper, consignor, agent, or person shall duly 
 attach and cancel, as is in this act provided, to each of said bills of 
 lading, manifests, or other memorandum, a stamp of the value of 1 
 cent : Provided, That a consignment of newspapers to any one point 
 
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 APPENDIX. 
 
 or to different points by the same train or conveyance when inclosed 
 in one general bundle at the point of shipment shall be considered as 
 one shipment, and, in lieu of a bill of lading therefor, the publisher 
 o± such newspaper shall file on or before the fifteenth day of each 
 month with the collector of internal revenue for the district in which, 
 siich newspaper is published a report under oath showing the number 
 of such shipments during the preceding month, to which report such 
 publisher shall affix and cancel stamps equal in value to 1 cent for 
 each shipment so reported : Provided further, That the report herein 
 required shall not include shipments of newspapers delivered to 
 points within the county in which the same are published. Any 
 failure to issue such bill of lading, manifest, or other memorandum, 
 as herein provided, shall subject such railroad or steamboat com- 
 pany, carrier, express company, or corporation or person to a penalty 
 of $50 for each offense. 
 
 It Is the duty of the carrier to see that the stamp is duly affixed and 
 canceled when the bill of lading is issued and delivered to the shipper. 
 (T. Ds. 2059, 2092.) 
 
 The law requiring bills of lading to be stamped does not apply to local 
 operators for the delivery of packages, baggage, and such like, within 
 the limits of the same town or city. (T. D. 2065.) 
 
 Transfers of stock certificates, bills of lading, and passage tickets. 
 (T. r>. 2073.) 
 
 Tax required on bills of lading for export where there is an inland 
 haul. (T. D. 2074.) 
 
 Bundles of newspapers. (T. Ds. 2036, 2075.) 
 
 Bills of lading. (T. T>. 2113.) 
 
 Reconsignments. (T. Ds. 2122, 2136, 2264.) 
 
 Stamp tax on bills of lading must be paid by the shipper, ruling of the 
 Interstate Commerce Commission. (T. D. 2169.) 
 
 Newspapers delivered to a carrier as one shipment requiring one stamp 
 must be inclosed in one general bundle at the point of shipment, except 
 where the shipment is to one consignee or to one destination. (T. D. 
 2184.) 
 
 Limited by exceptions enumerated and other exceptions relating to 
 intercity shipments and operations by rail and water, all movements of 
 freight from one city to another or within the limits of a city or place 
 required to be covered by stamped receipts. (T. D. 2197.) 
 
 Telegraph and telephone messages : It shall be the duty of every 
 person, firm, or corporation owning or operating any telegraph or 
 telephone line or lines to make within thirty days after the expiration 
 of each month a sworn statement to the collector of internal revenue 
 in each of their respective districts, stating the nuirfber of dispatches, 
 messages, or conA'ersations originated at each of their respective ex- 
 changes, toll stations, or offices, and transmitted thence over their 
 lines during the preceding month for which a charge of 15 cents or 
 more was imposed, and for each of such messages or conversations the 
 said person, firm, or corporation shall collect from the person paying 
 for the message or conversation a tax of 1 cent in- addition to the 
 regular charges for the message or conversation, which tax the said 
 person, firm, or corporation shall in turn j)ay to the said collector of 
 internal revenue of their respective districts: Provided, That only 
 one payment of said tax shall.be required, notwithstanding the lines 
 of one or more persons, firms, or corporations shall be used for the 
 transmission of each of said messages or conversations: Provided 
 further, That the messages or dispatches of the officers and employees 
 of any telegraph or telephone company concerning the affairs and 
 service of the compangj^j^^i^l MW^^^f^^ dispatches of the offi- 
 
APPENDIX. 785 
 
 cials and employees of railroad companies sent over the wires on 
 their respective railroads shall be exempt from this requirement: 
 And provided further^ That messages of officers and employees of 
 the Government on official business shall be exempt from the taxes 
 herein imposed upon telegraphic and telephonic messages. 
 
 Law and instructions relative to the tax imposed on telegraph and 
 telephone messages. (T. D. 2058.) 
 
 Eeporting messages received from rural or farmers' line associations 
 by commercial companies furnishing service for which a charge of 15 
 cents is made. (T. D. 2160.) 
 
 Bond : For indemnifying any person or persons, firm, or corpora- 
 tion who shall have become bound or engaged as surety for the pay- 
 ment of any sum of money, or for the due execution or performance 
 of the duties of any office or position, and to account for money 
 received by virtue thereof, and all other bonds of any description, 
 except such as may be required in legal proceedings, not otherwise 
 provided for in this schedule, 50 cents. 
 
 Stamp tax on bonds and policies of insurance. (T. D. 2062.) 
 
 Bonds and other instruments executed by fidelity and other similar 
 insurance companies. (T. D. 2072; see T. D. 2133.) 
 
 Liability to stamp tax on bonds and certificates in legal proceedings. 
 (T. D. 2091.) 
 
 Bonds given for the direct exportation of goods not subject to stamp 
 tax. (T. D. 2100.) 
 
 Bonds given by officials of a State, township, county, or village for 
 the faithful performance of duties not subject to stamp tax. (T. D. 2111.) 
 
 Bonds Issued by individuals which contain, in addition to the promise 
 to pay money, certain penal conditions and provisions, are taxable 
 as bonds at 50 cents each, and not as promissory notes. (T. D. 2165.) 
 
 Marriage bonds not taxable. (T. D. 2270.) 
 
 Bond executed by corporation for penal amount and containing cer- 
 tain penal conditions is taxable at rate of 50 cents, unless it is executed 
 with surely transacting business of fidelity insurance, etc. (T. D. 2277.) 
 
 Tax liability as to bonds given in connection with seizures of goods 
 under sections 3459 "and 3460, R. S. (T. D. 2328.) 
 
 Certificate of profits, or any certificate or memorandum showing 
 an interest in the property or accumulations of any association, com- 
 pany, or corporation, and on all transfers thereof, on each $100 of 
 t face value or fraction thereof, 2 cents. 
 
 7 Certificate : Any certificate of daraage, or otherwise, and all other 
 certificates or documents issued by any port warden, marine sur- 
 veyor, or other person, acting as such, 25 cents. 
 
 Certificate of any description required by law not otherwise speci- 
 fied in this act, 10 cents. 
 
 Certificates of deposit issued by banks not taxable. (T. D. 2054.) 
 
 Certificates issued by State officers in the interest of the State not 
 liable to stamp tax. (T. D. 2071.) 
 
 Bonds and other instruments executed by fidelity and other similar 
 insurance companies. (T. D. 2072.) 
 
 Marriage certificate. (T. D. 2308.) 
 
 Naturalization certificates. (T. D. 2329.) 
 
 Issuance of certificate must be mandatory under conditions and cir- 
 cumstances prescribed by law or it must be one which individual is 
 expressly authorized to demand and receive, in order to be taxable ; all 
 such certificates are taxable except those given strictly in exercise of 
 functions of the Government, State, or other political subdivision; 
 certificates not required by express statute but required by regulations 
 of executive department are not certificates required by law within 
 meaning of act. m^iMmS)^ Microsoft® 
 140184°— 20 50 
 
786 
 
 APPENDIX. 
 
 Contract : Broker's note, or memorandum of sale of any goods or 
 merchandise, stocks, bonds, exchange, notes of hand, real estate, or 
 property of any kind or description issued by brokers or persons 
 acting as such, for each note or memorandum of sale, not otherwise 
 provided for in this act, 10 cents. 
 
 Definition of brokers' notes or memoranda. (T. Ds. 2088, 2105.) 
 
 Conveyance: Deed, instrument, or writing, whereby any lands, 
 tenements, or other realty -sold shall be granted, assigned, trans- 
 ferred, or otherwise conveyed to, or vested in, the purchaser or pur- 
 chasers, or any other person or persons, by his, her, or their direc- 
 tion, when the consideration or value of the interest or property 
 conveyed, exclusive of the value of any lien or encumbrance thereon, 
 exceeds $100 and does not exceed $500, 50 cents ; and for each addi- 
 tional $500 or fractional part thereof in excess of $500, 60 cents: 
 Provided^ That nothing contained in this paragraph shall be so con- 
 strued as to impose a tax upon any instrument or writing given to 
 secure a debt. 
 
 Entry of any goods, wares, or merchandise at any customhouse, 
 either for consumption or warehousing, not exceeding $100 in value, 
 25 cents ; ■ exceeding $100 and not exceeding $500 in value, 50 cents ; 
 exceeding $500 in value, $1'. 
 
 Entry for the withdrawal of any goods or merchandise from cus- 
 toms bonded warehouse, 50 cents. 
 
 Stamp required on bond accompanying a mortgage; stamp not re- 
 quired on certificate of officer taking acknowledgment of deeds and 
 mortgages. (T. D. 2060.) 
 
 Explanation of T. D. 2060. (T. D. 2110.) 
 Relative to deeds, transfers of real estate, etc. (T. D. 2115.) 
 Explanation of T. D. 2115. (T. D. 2123.) 
 
 Stamp tax on deed of real property executed by sheriff or referee to 
 mortgagee, who bid in the property at foreclosure sale to satisfy mort- 
 gage lien, should be computed upon the amount bid for the property, 
 plus the costs, if paid by the purchaser. (T. D. 21.59.) 
 
 Supplementing and construing ruling made in T. D. 2110. Bonds 
 issued by individuals which contain, in addition to the promise to pay 
 money, certain penal conditions and provisions, are taxable as bonds 
 at 50 cents each, and not as promissory notes. (T. D. 2165.) 
 
 Documentary internal revenue stamps should be attached to master's 
 deeds made pursuant to decree of United States District Court. (Craw- 
 ford V. New South Farm and Home Co.. 231 Fed., 999; T. D. 2253.) 
 
 Tax upon deeds executed by State officers not an interference with 
 their duties or operation of State government. (Home Title Insurance 
 Co. of New York ?-. Keith, 230 Fed., 905; T. D. 2310.) 
 
 Deeds executed by State, county, town, or other municipal corporation 
 are not taxable. (T. D. 2283.) 
 
 Deeds executed and delivered on or before December 1, 1914, convey- 
 ing property in pursuance of contract made prior to that time held tax- 
 able. (T. D. 2279.) 
 
 Stock in corporation held valuable consideration for transfer of real 
 property. (T. D. 2278.) 
 Insurance : Each policy of insurance or other instrument, by what- 
 ever name the same shall be called, by which insurance shall be made 
 or renewed upon property of any description (including rents or 
 profits) , whether against peril by sea or on inland waters, or by fire or 
 lightning, or other peril, made by any person, association, or corpora- 
 tion, upon the amount of premium charged, one-half of 1 cent on each 
 dollar or fractional part thereof : Provided, That purely cooperative 
 Digitized by Microsoft® 
 
APPENDIX. 787 
 
 or mutual fire insurance companies or associations carried on by the 
 members thereof solely for the protection of their own property and 
 not for profit shall be exempted from the tax herein provided : And 
 provided further, That policies of reinsuran(je shall be exempt from 
 the tax herein imposed by this paragraph. 
 
 Each policy of insurance, or bond, or obligation of the nature of 
 indemnity for loss, damage, or liability issued, or execvited, or re- 
 newed by any person, association, company, or corporation, trans- 
 acting the business of fidelity, employer's liability, plate glass, steam 
 boiler, burglary, elevator, automatic sprinkler, or other branch of 
 insurance (except life, personal accident, and health insurance, and 
 insurance described and taxed or exempted in the preceding para- 
 graph and excepting also workmen's compensation insurance car- 
 ried on by the members thereof solely for their own protection and 
 not for profit), and each bond undertaking or recognizance, condi- 
 tioned for the performance of the duties of any office or position, or 
 for the doing or not doing of anything therein specified, or other 
 obligation of the nature of indemnity, and each contract or obliga- 
 tion guaranteeing the validity or legality of bonds or other obliga- 
 tions issued by any State, county, municipal, or other public body 
 or organization, or guaranteeing titles to real estate or mercantile 
 credits executed or guaranteed by any liability, fidelity, guarantee, 
 or surety company upon the amount of premium charged, one-half 
 of 1 cent on each dollar or fractional part thereof: Provided, That 
 policies of reinsurance shall be exempt from the tax herein imposed 
 by this paragraph. 
 
 Policies of fire Insurance. (T. D. 2043.) 
 
 Bonds and policies of Insurance. (T. D. 2062.) 
 
 Whether insurance company or policyholder shall pay tax. (T. D. 
 2068.) 
 
 Law and instructions relative to tax imposed on marine-insurance 
 policies. (T. D. 2106.) 
 
 Policies of mutual companies which obtain profit not exempt, except 
 as to reserve funds required by State law or as to working balance In 
 bank. (T. D. 2114.) 
 
 Tax held to accrue upon the issuance of a continuous or long-term 
 policy of insurance in proportion to the amount of premium due and 
 payable when issued ; stamps shall be affixed upon receipts covering pay- 
 ment of subsequent premiums or assessments. When' whole premium due 
 in advance, taxable upon issuance of policy. (T. D. 2119.) 
 
 Construction of the proviso exempting from taxation the policies of 
 mutual fire Insurance companies carried on by the members thereof for 
 the protection of their own property and not for profit. (T. D. 2195.) 
 
 Mere incidental profit earned by way of interest on its invested safety 
 funds or its bank balances does not change purely mutual character of 
 company or indicate that its business is carried on for profit. (Niles v. 
 Central Blanufacturers' Mutual Insurance Co., 252 Fed., 564; T. D. 2743.) 
 
 Mutual hail insurance company. (T. D. 2318.) 
 
 Increased tax due by reason of payment of subsequent premium on 
 continuing bond or policy of insurance issued after December 1, 1914, 
 should be represented by stamps affixed to premium receipt given, but 
 where this has not been done, stamps should be forwarded to be affixed 
 to policy itself. (T. Ds. 2281, 2287.) 
 
 Policies of fire insurance issued by Lloyds, of London, and delivered in 
 United States on property in this country held taxable. (T. D. 2286.) 
 
 Cooperative associations which derive any income from investments of 
 reserves are not associations carried on not for profit. (T. D. 2282.) 
 
 Digitized by Microsoft® 
 
788 
 
 APPENDIX. 
 
 Passage ticket, for each passenger, sold in the United States for 
 passage by any vessel to a foreign port or place, if costing not ex- 
 ceeding $30, $1; costing more than $30 and not exceeding $60, $3; 
 costing more than $60, $S : Provided, That such passage ticliets, cost- 
 ing $10 or less, shall be exempt from taxation. 
 
 Transfers of passage tickets. (T. D. 2073.) 
 
 Tax not required on passage tickets issued to members of foreign em- 
 bassies or legations, or members of tlieir liouseliolds, or to consuls of 
 foreign countries. (T. D. 2189.) 
 
 Power of attorney or proxy for voting at any election for officers 
 of any incorporated company or association, except religious, chari- 
 table, or literary societies, or public cemeteries, 10 cents. 
 
 Instructions regarding tax. (T. D. 2129.) 
 
 Power of attorney to sell and convey real estate, or to rent or 
 lease the same, to receive or collect rent, to sell or transfer any stock, 
 bonds, scrip, or for the collection of any dividends or interest there- 
 on, or to perform any and all other acts not hereinbefore specified, 
 25 cents: Provided, That no stamps shall be required upon any 
 papers necessary to be used for the collection of claims from the 
 United States for pensions, back pay, bounty, or for property lost 
 in the military or naval service. 
 
 An instrument appointing an attorney in fact to transfer stock on the 
 books of the company requires it to be stamped as a power of attorney, 
 but an instrument authorizing the secretary to make the transfer is held 
 not to be a power of attorney. (T. D. 2056.) 
 
 Clause in promissory notes authorizing confession of judgment is not 
 taxable as a power of attorney. (T. D. 2081.) 
 
 Powers of attorney for transfer of stocks and bonds under certain con- 
 ditions not subject to tax. (T. D. 2085.) 
 
 Instructions. (T. D. 2134; compare T. Ds. 2196, 2269.) 
 
 Tax on powers of attorney in bankruptcy proceedings and on certificate 
 by referee in bankruptcy. (T. D. 2145.) 
 
 General letter of attorney, authorizing appointee to act for signer in 
 bankruptcy proceedings, must be stamped. (In re Hawley, 220 Fed., 372.) 
 
 Power of attorney, authorizing attorney to represent creditors in bank- 
 ruptcy proceedings, must bear stamps, even though power is unnecessary. 
 (In re Capitol Trading Co., Inc., 229 Fed., 806.) 
 
 Protest : Upon the protest of every note, bill of exchange, accept- 
 ance, check, or draft, or any marine "protest, whether protested by a 
 notary public or by any other officer who may be authorized by the 
 law of any State or States to make such protest, 25 cents. 
 
 Every seat sold in a palace or parlor car and every berth sold in a 
 sleeping car, 1 cent, to be paid by the company selling the same. 
 
 Form prescribed for rendering monthly statement. (T. D. 2041.) 
 Digest of rulings under war-revenue act of .Tune 13, 1898, identical with 
 
 or essentially similar to this act published for convenience in construing. 
 
 (T. D. 2051.) 
 Law and regulations concerning internal-revenue documentary stamps 
 
 and taxes. (T. D. 2067.) 
 
 Schedule B. 
 
 Perfumery and cosmetics and other similar articles : For and upon 
 every packet, box, bottle, pot, phial, or other inclosure containing 
 any essence, extract, toilet water, cosmetic, vaseline, petrolatum, hair 
 oil, pomade, hair dressing, hair restorative, hair dye, tooth wash, 
 dentifrice, tooth past^^fif^j^Mfe/^J^/P® i^nj similar substance or 
 
APPENDIX. 789 
 
 article, by whatsoever name the same heretofore have been, now are, 
 or may hereafter be called, known, or distinguished, used, or applied 
 as perfumes or as cosmetics, and sold or removed for consumption 
 and sale in the United States, where such packet, box, bottle, pot, 
 phial, or other inclosure, with its contents, shall not exceed at the 
 retail price or value the sum of 5 cents, one-eighth of 1 cent. 
 
 Where such packet, box, bottle, pot, phial, or other inclosure, with 
 its contents, shall exceed the retail price or value of 5 cents, and shall 
 not exceed the retail price or value of 10 cents, two-eighths of 1 cent. 
 
 Where such packet, box, bottle, pot, phial, or other inclosure, with 
 its contents, shall exceed the retail price or value of 10 cents and 
 shall not exceed the retail price or value of 15 cents, three-eighths of 
 1 cent. 
 
 Where such packet, box, bottle, pot, phial, or other inclosure, with 
 its contents, shall exceed the retail price or value of 15 cents and shall 
 not exceed the retail price or value of 25 cents, five-eighths of 1 cent. 
 And for each additional 25 cents of retail price or value or frac- 
 tional part thereof in excess of 25 cents, five-eighths of 1 cent. 
 
 Regulations relative to perfumery, cosmetics, chewing gum, etc. (T. 
 Ds. 2063, 2108.) 
 
 Tax on talcum powders, bay rum, witch-hazel, and vaseline. (T. D. 
 2066.) 
 
 Instructions as to the handling of witch-hazel for medicinal use; not 
 taxable. (T. D. 2086.) 
 
 Where claims are made by manufacturers of soaps as to the cosmetic 
 and beautifying effects of their soaps on the skin, hair, etc., the tax must 
 be paid. (T. D. 2094.) 
 
 Instructions and regulations in regard to tax payment and stamping 
 tooth and mouth washes. (T. Ds. 2095, 2104.) 
 
 Instructions relative to tax payment and stamping hair oils, pomades, 
 hair dressings, hair restoratives, hair dyes, etc. (T. D. 2096.) 
 
 Instructions relative to Packer's tar soap. (T. D. 2099.) 
 
 Instructions relative to tax payment and stamping listerine, peroxide 
 of hydrogen, and similar compounds. (T. D. 2149.) 
 
 Exemption of Pears' soap. (T. D. 2156.) 
 
 Exemption of Palmolive soap. (T. D. 2157.) 
 
 Chewing gum or substitutes therefor: For and upon each box, 
 carton, jar, or other package containing chewing gum of not more 
 than $1 of actual retail value, 4 cents; if exceeding $1 of retail value, 
 for each additional dollar or fractional part thereof, 4 cents; under 
 such regulations as the Commissioner of Internal Revenue, with the 
 approval of the Secretary of the Treasury, may prescribe. 
 
 Tax on chewing gum is based on the retail value, whether sold in small 
 packages or in bulk. The articles must be retailed from stamped pack- 
 ages, whether sold over the counter or by means of a slot machine. 
 (T. D. 2052.) 
 
 Chewing gum in broken packages to be stamped before sale at retail. 
 (T. D. 2076.) 
 
 That all articles and preparations provided for in this schedule 
 which are in the hands of manufacturers or of wholesale or retail 
 dealers on and after December first, nineteen hundred and fourteen, 
 shall be subject to the payment of the stamp taxes herein provided 
 for, but it shall be deemed a compliance with this act as to such 
 articles on hand in the hands of wholesale or retail dealers as afore- 
 said who are not the manufacturers thereof to affix the proper adhe- 
 sive tax stamp at the time the packet, box, bottle, pot, or phial, or 
 other inclosure, with ifMigitizlBSikt^fMmtilbaiM^eta.il. 
 
790 APPENDIX. 
 
 Drawback. 
 
 There shall be an allowance of drawback on articles me?jtioned in 
 Schedule B of this act on which an:y internal-revenue tax shall have 
 been paid equal in amount to the stamp tax paid thereon, and no 
 more, when exported, to be paid by the warrant of the Secretary of 
 the Treasury on the Treasurer of the United States, out of any money 
 arising from internal taxes not otherwise appropriated: Provided, 
 That no allowance of drawback shall be made for any such articles 
 exported prior to the date this act becomes effective. The evidence 
 that any such tax has been paid as aforesaid shall be furnished to the 
 satisfaction of the Commissioner of Internal Eevenue by the person 
 claiming the allowance of drawback, and the amount shall be ascer- 
 tained under such regulations as shall be prescribed from time to 
 time by said Commissioner, with the approval of the Secretary of the 
 Treasury. 
 
 General provisions appUeablp; penalty; aooropriatlon. 
 
 Sec. 23. That all administrative, special, or stamp provisions of 
 law, including the law relating to the assessment of taxes, so far a.s 
 applicable, are hereby extended to and made a part of this act, and 
 every person, firm, company, corporation, or association liable to any 
 tax imposed by this act, or for the collection thereof, shall keep such 
 records and render, under oath, such statements and returns, and 
 shall comply with such regulations as the Commissioner of Internal 
 Eevenue, with the approval of the Secretary of the Treasury, may 
 from time to time prescribe, and every such person, firm, company, 
 corporation, or association who evades or attempts to evade any of 
 the taxes imposed by this act, or shall fail to truly account for and 
 pay all taxes collected by them under this act, or any regulations 
 issued thereunder, shall be subject to a penalty of double the amount 
 of the taxes evaded or attempted to be evaded or unlawfully with- 
 held, to be assessed and collected as other penalties incurred under 
 internal- revenue laws are assessed and collected ; and for the expense 
 connected with the assessment and collection of the taxes provided 
 by this act there is hereby appropriated $200,000, or so much thereof 
 as may be required, out of any money in the Treasury not otherwise 
 appropriated ; $170,000 to be added to and made a part of the appro- 
 priations for " salaries and expenses of collection of internal revenue, 
 nineteen hundred and fifteen; and $30,000 to the appropriation for 
 paper for internal-revenue stamps, nineteen hundred and fifteen." 
 
 Section 3224, R. S., applies to penalty imposed by this section ; collector 
 has authority to make assessment of penalities arising out of act ; one is 
 not reldevecl of penalty, for failure to pay tax, by section 22. (Kohlhamer 
 V. Smietanka, 239 Fed., 408.) 
 
 Date act takes effect; how long in force; redemption of stamps. 
 
 Sec. 24. That the provisions of this act shall take effect on the day 
 next succeeding the date of its passage, except where otherwise 
 expressly provided : Provided, That on the day after the thirty-first 
 day of December, nineteen hundred and fifteen, the taxes levied 
 under this act shall no longer be levied and collected, but all taxes 
 arising or accruing before said date shall continue to be collectible 
 under the terms of this act : Provided, however, That on and after 
 Digitized by Microsoft® 
 
APPENDIX. 791 
 
 the first day of January, nineteen hundred and sixteen, the provi- 
 sions of section thirty-three hundred and thirty-nine of the Revised 
 Statutes, as amended by an act approved April twelfth, nineteen 
 hundred and two, imposing a tax on fermented liquors shall not be 
 affected by any limitation as to the levying or collecting of the 
 additional tax imposed by this act on such fermented liquors, but 
 shall then be in full force and effect on and after the said first day 
 of January, nineteen hundred and sixteen. All stamps provided 
 for in this act unused after the aforesaid date shall be redeemed 
 from the holder thereof, under such rules as the Secretary of the 
 Treasury may prescribe. 
 
 Extension of act of October 32, 1911; appropriation. 
 
 JOINT RESOLUTION Extending the provisions of the act entitled "An act to 
 increase the iiiternal revenue, and for other purposes," approved October 
 twenty-second, nineteen hundred and fourteen, to December thirty-first, 
 nineteen hundred and sixteen. Approved December 17, 1915 (39 Stat. 2). 
 
 Resolved hy the Senate and House of Representatives of t-he 
 United States of America in Congress assembled, That the provi- 
 sions of the act entitled "An act to increase the internal revenue, 
 and for other purposes," approved October twenty-second, nineteen 
 hundred and fourteen (Statutes at Large, volume thirty-eight, pages 
 seven hundred and forty-five to seven hundred and sixty-four, in- 
 clusive), are continued in full force and effect until and including 
 December thirty -first, nineteen hundred and sixteen. 
 
 Sec. 2. That the appropriation for salaries and expenses of col- 
 lectors of internal revenue, deputy collectors, surveyors, clerks, mes- 
 sengers, and janitors in internal-revenue offices for the fiscal year 
 nineteen hundred and sixteen is made available for all expenses 
 arising under the provisions of this joint resolution during the last 
 half of the fiscal year nineteen hundred and sixteen, including not 
 exceeding $6,050 for payment of necessary personal services in the 
 Office of the Commissioner of Internal Revenue in the District of 
 Columbia. 
 
 Bedemption of stamps. 
 
 AN ACT Making appropriations to supply deficiencies in appropriations for the 
 fiscal year ending June thirtieth, nineteen hundred and seventeen, and prior 
 fiscal years, and for other purposes. Approved April 17, 1917. (40 Stat., 3.) 
 
 ^ H: -^ iff ^ ^ ii: 
 
 Section 1. The Commissioner of Internal Revenue, subject to regu- 
 lation prescribed by the Secretary of the Treasury, may make allow- 
 ance for or redeem stamps, issued under authority of the act ap- 
 proved October twenty-second, nineteen hundred and fourteen, en- 
 titled "An act to increase the internal revenue, and for other pur- 
 poses," and the joint resolution approved December seventeenth, 
 nineteen hundred and fifteen, entitled "Joint resolution extending 
 the provisions of the act entitled 'An act to increase the internal 
 revenue, and for other purposes,' approved October twenty-second, 
 nineteen hundred and fourteen, to December thirty-first, nineteen 
 hundred and sixteen," to denote the payment of internal-revenue 
 tax, and which have not been used, if presented prior to January 
 first, nineteen hundred and eighteen. 
 
 * * Digitized by Microsoft®^' * * 
 
792 
 
 APPENDIX. 
 
 Bepeal of act of October 22, 1914. 
 
 Sec. 410. [Act of September 8, 1916 {39 Stat., 756).} That the 
 act appi-oved October twenty-second, nineteen hundred and four- 
 teen, entitled "An act to increase the internal revenue, and for other 
 purposes," and the joint resolution approved December seventeenth, 
 nineteen hundred and fifteen, entitjed " Joint resolution extending 
 the provisions of the act entitled 'An act to increase the internal 
 revenue, and for other purposes,' approved October twenty-second, 
 nineteen hundred and fourteen, to December thirty-first, nineteen 
 hundred and sixteen," are hereby repealed, except sections three and 
 four of such act as so extended j which sections shall remain in force 
 till January first, nineteen hundred and seventeen, and except that 
 the provisions of the said act shall remain in force for the assess- 
 ment and collection of all special taxes imposed by sections three and 
 four thereof, or by such sections as extended by said joint resolu- 
 tion, for any year or part thereof ending prior to January first, 
 nineteen hundred and seventeen, and of all other taxes imposed by 
 such act, or by such act as so extended, accrued prior to the taking 
 effect of this title, and for the imposition and collection of all pen- 
 alties or forfeitures which have accrued or may accrue in relation to 
 any of svich taxes. 
 
 Sec. 1009. [Act of Fehniary U, 1919 {iO Stat., 1057).] That the 
 act approved October 22, 1914, entitled "An act to increase the 
 internal revenue, and for other purposes," and the joint resolution 
 approved December 17, 1915, entitled "Joint resolution extending 
 the provisions of the act entitled 'An act to increase the internal 
 revenue, and for other purposes,' approved October twenty-second, 
 nineteen hundred and fourteen, to December thirty-first, nineteen 
 hundred and sixteen," are hereby repealed, except that the provisions 
 of such act shall remain in force for the assessment and collection 
 of all special taxes imposed by sections 3 and 4 thereof, or by such 
 sections as extended by such ]oint resolution, for any year or part 
 thereof ending prior to January 1, 1917, and of all other taxes im- 
 posed by such act, or by such act as so extended, accrued prior to 
 September 8, 1916, and for the imposition and collection of all pen- 
 alties or forfeitures which have accrued or may accrue in relation 
 to any of such taxes. 
 
 Chapter 10. 
 
 AN ACT TO INCREASE THE REVENUE AND FOR OTHER PURPOSES. 
 APPROVED SEPTEMBER 8, 1916 (39 STAT., 756). 
 
 Titlp I — Income tax. 
 
 Part I. — On individuals. 
 
 Normal tax; additional tax; 
 scope. 
 
 Income defined. 
 
 Additional tax includes undis- 
 tributed profits. 
 
 Income exempt from law. 
 
 Deductions allowed. 
 
 Credits allowed. 
 
 Nonresident aliens. 
 
 Personal exempt] 
 
 Returns. 
 
 )tk)n. 
 
 Digitized by 
 
 Title I — Income tax — Continued. 
 Part I — Individuals — Continued. 
 Assessment and administra- 
 tion. 
 Part II — On corporations. 
 Imposition of tax. 
 Conditional and other exemp- 
 tions. 
 Deductions. 
 Returns. 
 
 Assessment and administra- 
 tion. 
 
 microsoft® 
 
APPENDIX. 
 
 793 
 
 Title I — Income tax — Continued. 
 
 Part III — General administrative 
 provisions. 
 " State ; " " United States." 
 Section 3167, Revised Stat- 
 utes, amended. 
 Section 3172, Revised Stat- 
 utes, amended. 
 Section 3173, Revised Stat- 
 utes, amended. 
 Section 3176, Revised Stat- 
 utes, amended. 
 Receipts. 
 Penalties. 
 
 Verification of returns. 
 Compelling attendance of wit- 
 nesses, etc. 
 Statistics. 
 Application of earlier laws, 
 
 etc. 
 Porto Rico and Philippine Is- 
 lands. 
 Repeal of Section II, act Octo- 
 ber 3, 1913. 
 Income under act of October 
 
 3, 1913. 
 New section. 
 Title II — Estate tax. 
 Definitions. 
 
 Imposition of tax ; rates. 
 Determination of value of gross 
 
 estate. 
 Determination of viilue ot net 
 
 estate. 
 Time of payment of tax. 
 Executor's duties; returns. 
 Return by collector. 
 To wbom payment made; amount 
 to be paid ; interest ; duplicate 
 receipts. 
 Subjection of property. 
 Lien of tax; liability of trans- 
 feree or trustee. 
 Penalties. 
 
 Application of earlier laws. 
 Regulations. 
 
 Acceptance of Liberty bonds in 
 payment of tax. 
 Title III — Munition manufacturer's 
 tax. 
 Definitions. 
 
 Imposition of tax; rate; limita- 
 tion. 
 Computation of net profits. 
 Gross amount deemed to be what. 
 Returns. 
 
 Title III — Munition manufacturer's 
 tax — Continued. 
 
 Transmission of returns. 
 
 Review by Commissioner. 
 
 Persons on whom tax assessed. 
 
 Examination of books, etc. 
 
 Information not to be communi- 
 cated. 
 
 Penalties. 
 
 Application of earlier laws. 
 
 Regulations. 
 Title IV — Miscellaneous taxes. 
 
 Fermented liquor. 
 
 Natural wines. 
 
 Still wines. 
 
 Payment of taxes by stamp ; no- 
 tice ; bond ; inventories ; labels ; 
 etc. 
 
 "Withdrawal of grape brandy or 
 wine spirits. 
 
 Wine spirits used free of tax. 
 
 Wine spirits defined ; when water 
 may be used ; alcoholic strength 
 when water has been used. 
 
 Withdrawal of spirits from ware- 
 house free of tax. 
 
 Removal for storage on bonded 
 premises. 
 
 Wines, liqueurs, and similar com- 
 pounds. 
 
 Penalties. 
 
 Meters, locks, and seals. 
 
 Allowances for losses. 
 
 Section 3264, Revised Statutes, 
 amended. 
 
 Withdrawal for export. 
 
 Section 3255, Revised -Statutes, 
 amended. 
 
 Gin ; bottling in bond. 
 
 Section 8354, Revised Statutes, 
 amended. 
 
 Special taxes. 
 
 Tobacco, cigar, and cigarette man- 
 ufacturers. 
 
 Application of earlier laws ; rec- 
 ords and returns. 
 
 Partial repeal of earlier laws. 
 
 Allowance for or redemption of 
 stamps. 
 
 Title effective when. 
 
 Leave of absenSe of revenue agents 
 and inspectors. 
 Title IX: 
 
 Effect of partial Invalidity of 
 act. 
 
 Act effective when. 
 
 Citation of act. 
 
 TITLE I.— INCOME TAX.^ 
 Part I. — On Individuals. 
 
 Normal tax; additional tax; scope. 
 
 Sec. 1. (a) That there shall be levied, assessed, collected, and paid 
 annually upon the entire net income received in the preceding calendar 
 year from all sources ^i^iii?§^tl^Mi&^QY(® citizen or resident of the 
 
 1 See EcgulatioDS No. 33 (T. D., 2690) . 
 
794 
 
 APPENDIX. 
 
 United States, a tax of two per centum upon such income; and a 
 like tax shall be levied, assessed, collected, and paid annually upon 
 the entire net income received in the preceding calendar year from 
 all sources within the United States by every individual, a nonresident 
 alien, including interest on bonds, notes, or other interest- bearing 
 obligations of residents, corporate or otherwise. 
 
 (b) In addition to the income tax imposed by subdivision (a) of 
 this section (herein referred to as the normal tax) there shall be lev- 
 ied,_ assessed, collected, and paid upon the total net income of every 
 individual, or, in the case of a nonresident alien, the total net income 
 received from all sources within the United States, an additional 
 income tax (herein referred to as the additional tax) of one per 
 centum per annum upon the amount by which such total net income 
 exceeds $20,000 and does not exceed $40,000, two per centum per 
 annum upon the amount by which such total net income exceeds 
 $40,000 and does not exceed $60,000, three per centum per annum 
 upon the amount by which such total net income exceeds $60,000 
 and does not exceed $80,000, four per centum per annum upon the 
 amount by which such total net income exceeds $80,000 and does 
 not exceed $100,000, five per centum per annum upon the amount 
 by which such total net income exceeds $100,000 and does not exceed 
 $150,000, six per centum per annum upon the amount by which such 
 total net income exceeds $150,000 and does not exceed $200,000, 
 seven per centum per annum upon the amount by which such total 
 not income exceeds $200,000 and does not exceed $250,000, eight per 
 centum per annum upon the amount by which such total net income 
 exceeds $250,000 and does not exceed $300,000, nine per centum per 
 annum upon the amount by which such total net income exceeds 
 $300,000 and does not exceed $500,000, ten per centum per annum 
 upon the amount by which such total net income exceeds $500,000 
 and does not exceed $1,000,000, eleven per centum per annum upon 
 the amount by which such total net income exceeds $1,000,000 and 
 does not exceed $1,500,000, twelve per -centum per annum upon the 
 amount by which such total net incomes exceeds $1,500,000 and does 
 not exceed $2,000,000, and thirteen per centum per annum upon the 
 amount by which such total net income exceeds $2,000,000. 
 
 For the purpose of the additional tax there shall be included as 
 income the income derived from dividends on the capital stock or 
 from the net earnings of any corporation, joint-stock company or 
 association, or insurance company, except that in the case of non- 
 resident aliens such income derived from sources without the United 
 States ;.hall not be included. 
 
 All the provisions of this title relating to the normal tax on indi- 
 viduals, so far as they are applicable and are not inconsistent with 
 this subdivision and section three, shall apply to the imposition, levy, 
 assessment, and collection of the additional tax imposed under this 
 subdivision. 
 
 (c) The foregoing normal and additional tax rates shall apply to 
 the entire net income, except as hereinafter provided, received by 
 every taxable person in the calendar year nineteen hundred and 
 sixteen and in each calendar year thereafter. 
 
 " Nonresident alien individual " defined as individual whose residence 
 is not within United States, and who is not a citizen of United States; 
 rules for determin®^jSfg^jqj^ fl^?^SOj¥§) ^- 2794.) 
 
APPENDIX. 795 
 
 Income dcfiued. 
 
 Sec. 2. (a) That, subject only to such exemptions and deductions 
 as are hereinafter allowed, the net income of a taxable person shall 
 include gains, profits, and income derived from salaries, wages, or 
 compensation for personal service of whatever kind and in whatever 
 form paid, or from professions, vocations, businesses, trade, com- 
 merce, or sales, or dealings in property, whether real or personal, 
 growing out of the ownership or use of or interest in real or personal 
 property, also from interest, rent, dividends, securities, or the trans- 
 action of any business carried on for gain or profit, or gains or profits 
 and income derived from any source whatever: Provided, That the 
 term " dividends " as used ia this title shall be held to mean any 
 distribution made or ordered to be made by a corporation, joint-stock 
 company, association, or insurance company, out of its earnings or 
 profits accrued since March first, nineteen hundred and thirteen, and 
 payable to its shareholders, whether in cash or in stock of the cor- 
 poration, joint-stock company, association, or insurance company, 
 which stock dividend shall be considered income, to the amount of 
 its cash value. 
 
 Amended by section 1200, act October 3, 1917 ; p. 890. 
 
 Where, in 1907, the owner of land leased same for 23 years under an 
 agreement requiring the tenant to construct an expensive briclt building, 
 and on the tenant's default the owner retook possession in 1916, the 
 value of the building can not be deemed income accruing in the year 1917. 
 (Miller v. Gearin, 258 Fed., 225.) 
 
 (b) Income received by estates of deceased persons during the 
 period of administration or settlement of the estate, shall be subject 
 to the normal and additional tax and taxed to their estates, and 
 also such income of estates or any kind of property held in trust, 
 including such income accumulated in trust for the benefit of unborn 
 or unascertained persons, or persons with contingent interests, and 
 income held for future distribution under the terms of the will or 
 trust shall be likewise taxed, the tax in each instance, except when 
 the income is returned for the purpose of the tax by the beneficiary, 
 to be assessed to the executor, administrator, or trustee, as the case 
 may be : Provided, That where the income is to be distributed annu- 
 ally or regularly between existing heirs or legatees, or beneficiaries 
 the rate of tax and method of computing the same shall be based in 
 each case upon the amount of the individual share to be distributed. 
 
 Such trustees, executors, administrators, and other fiduciaries are 
 hereby indemnified against the claims or demands of every beneficiary 
 for all payments of taxes which they shall be required to make under 
 the provisions of this title, and they shall have credit for the amount 
 of such payments against the beneficiary or principal in any account- 
 ing which they make as such trustees or other fiduciaries. 
 
 (c) For the purpose of ascertaining the gain derived from the sale 
 or other disposition of property, real, personal, or mixed, acquired 
 before March first, nineteen hundred and thirteen, the fair market 
 price or value of such property as of March first, nineteen hundred 
 and thirteen, shall be the basis for determining the amount of such 
 gain derived. 
 
 Dividends paid out of amounts set aside to cover depreciation and 
 depletion constitute taxable Income to stockholders receiving them. (T. 
 
 D. 2540.) Digitized by Microsoft® 
 
796 APPENDIX. 
 
 All gains, profits, and income from sale or exchange of farm products 
 required to be included in return for year in whicli products were actu- 
 ally marketed and sold. (T. D. 2665.) 
 
 Additional tax includes undistributed profits. 
 
 Sec. 3. For the purpose of the additional tax, the taxable income 
 of any individual shall include the share to which he would be en- 
 titled of the gains and profits, if divided or distributed, whether 
 divided or distributed or not, of all corporations, joint-stock com- 
 panies or associations, or insurance companies, however created or 
 organized, formed or fraudulently availed of for the purpose of pre- 
 venting the imposition of such tax through the medium of permitting 
 such gains and profits to accumulate instead of being divided or 
 distributed; and the fact that any such corporation, joint-stock 
 company or association, or insurance company, is a mere holding 
 company, or that the gains and profits are permitted to accumulate 
 beyond the reasonable needs of the business, shall be prima facie 
 evidence of a fraudulent purpose to escape such tax; but the fact 
 that the gains and profits are in any case permitted to accumulate 
 and become surplus shall not be construed as evidence of a purpose 
 to escape the said tax in such case unless the Secretary of the Treasury 
 shall certify that in his opinion such accumulation is unreasonable 
 for the purposes of the business. When requested by the Commis- 
 sioner of Internal Revenue, or any district collector of internal rev- 
 enue, such corporation, joint-stock company or association, or insur- 
 ance company shall forward to him a correct statement of such gains 
 and profits and the names and addresses of the individuals or share- 
 holders who would be entitled to the same if divided or distributed. 
 
 Income exempt from la^r. 
 
 Sec. 4. The following income shall be exempt from the provisions 
 of this title : i 
 
 The proceeds of life insurance policies paid to individual benefici- 
 aries upon the death of the insured; the amount received by the 
 insured, as a return of premium or premiums paid by him under life 
 insurance, endowment, or annuity contracts, either during the term 
 or at the maturity of the term mentioned in the contract or upon 
 the surrender of the contract ; the value of property acquired by gift, 
 bequest, devise, or descent (but the income from such property shall 
 be included as income) ; interest upon the obligations of a State or any 
 political subdivision thereof or upon the obligations of the United 
 States or its possessions or securities issued under the provisions of 
 the Federal farm loan Act of July seventeenth, nineteen hundred and 
 sixteen; the compensation of the present President of the United 
 States during the term for which he has been elected, and the judges 
 of the Supreme and inferior courts of the United States now in office, 
 and the compensation of all officers and employees of a State, or any 
 political subdivision thereof, except when such compensation is paid 
 by the United States Government. 
 
 Amended by section 1200, act October 3, 1917 ; p. 890. 
 
 Salaries received under funds of Smith-Lever Act of May 8, 1914, as 
 taxable income. (T. D. 2668.) 
 
 Articles 83 and 84 of Regulations No. 33, regarding interest upon obli- 
 gations of State or any political subdivision thereof, revised. (T. D. 
 
 ^'^^^- ^ Digitized by Microsoft® 
 
APPENDIX. 797 
 
 Proceeds of accident insurance policies and amounts received as result 
 of suit or compromise for personal injuries sustained through accident 
 as taxable income. (T. D. 2747.) 
 
 Interest on Liberty bonds held or subscribed for l.iy trustees, part- 
 nerships, or corporations. (T. D. 2762.) 
 
 Exemption of Liberty bonds and Victory notes. (T. D. 2836.) 
 
 Deductions aUowed. 
 
 Sec. 5. That in computing net income in the case of a citizen or 
 resident of the United States — 
 
 (a) For the purpose of the tax there shall be allowed as deduc- 
 tions — ■ 
 
 First. The necessary expenses actually paid in carrj'ing on any 
 business or trade, not including personal, living, or family expenses ; 
 
 Second. All interest paid within the year on his indebtedness; 
 
 Amended by section 1201 (1), act of October 3, 1917; p. 891. 
 
 Third. Taxes paid within the year imposed by the authority of the 
 United States, or its Territories, or possessions, or any foreign coun- 
 try, or under the authority of any State, county, school district, or 
 municipality, or other taxing subdivision of any State, not including 
 those assessed against local benefits ; 
 
 Amended by section 1201 (1), act oi October 3, 1917; p. 891. 
 
 Fourth. Losses actually sustained during the year, incurred in his 
 business or trade, or arising from fires, storms, shipwreck, or other 
 casualty, and from theft, when such losses are not compensated for 
 by insurance or otherwise: Provided, That for the purpose of ascer- 
 taining the loss sustained from the sale or other disposition of prop- 
 erty, real, personal, or mixed, acquired before March first, nineteen 
 hundred and thirteen, the fair market price or value of such property 
 as of March first, nineteen hundred and thirteen, shall be the basis 
 for determining the amount of such loss sustained ; 
 ( Fifth. In transactions entered into for profit but not connected 
 with his business or trade, the losses actually sustained therein dur- 
 ing the year to an amount not exceeding the profits arising there- 
 from; 
 
 Sixth. Debts due to the taxpayer actually ascertained to be worth- 
 less and charged off within the year; 
 
 Seventh. A reasonable allowance for the exhaustion, wear and tear 
 of property arising out of its use or employment in the business or 
 trade; 
 
 Eighth, (a) In the case of oil and gas wells a reasonable allowance 
 for actual reduction in flow and production to be ascertained not by 
 the flush flow, but by the settled production or regular flow ; (b) in 
 the case of mines a reasonable allowance for depletion thereof not to 
 exceed the market value in the mine of the product thereof, which has 
 been mined and sold during the year for which the return and com- 
 putation are made, such reasonable allowance to be made in the case 
 of both (a) and (b) under rules and regulations to be prescribed by 
 the Secretary of the Treasury : Provided, that when the allowances 
 authorized in (a) and (b) shall equal the capital originally invested, 
 or in case of purchase made prior to March first, nineteen hundred 
 and thirteen., the fair market value as of that date, no further allow- 
 ance shall be made. 'No deductions shall^ allowed for any amount 
 paid out for new biraff^ ^effiSfilfiF^provements, or better- 
 
798 
 
 APPENDIX. 
 
 m«its, made to increase the value of any property or estate, and no 
 deduction shall be made for any amount of expense of restoring prop- 
 erty or making g-ood the exhaustion thereof for which an allowance 
 IS or has been made. 
 
 Amended ]iy section 1201 (2), act of October 3, 1917. bv adding para- 
 graph "Nintli"; p. 891. 
 
 Credits allowed. 
 
 (b) For the purpose of the normal tax only, the income embraced 
 in a personal return shall be credited with the amount received as 
 dividends upon the stock or from the net earnings of any corporation, 
 joint-stock conipany or association, trustee, or insurance company, 
 which is taxable upon its net income as hereinafter provided; 
 
 (c) A like credit shall be allowed as to the amount of income, the 
 normal tax upon which has been paid or withheld for payment at the 
 source of the income under the provisions of this title. 
 
 Corporations, partnerships, or individuals paying officers or employees 
 salaries and wages during war period in which they were in service of 
 United States permitted to deduct amount so paid as ordinary and 
 necessary expenses of doing business. (T. D. 2660.) 
 
 Treatment for taxation purposes of amounts ostensibly paid for 
 compensation for services of officers and employees. (T. D. 2696.) 
 
 Basis of allowance for wear and tear of property arising out of its 
 use or employment in business or trade. (T. D. 2754.) 
 
 Individuals engaged in mining may compute depletion deductions on 
 basis of fair marliet value of mining content as of March 1, 1913, if 
 property was acquired prior to that date, or on basis of cost, if acquired 
 subsequently. (T. D. 2446.) 
 
 Individuals from whose property oil or gas is produced may deduct 
 on account of depletion such percentage of fair market value as of 
 March 1, 1913, of the oil or gas property, if acquired prior to that 
 date, or of cost of property if acquired subsequently, as reduction in 
 flow and production of the taxable year is percentage of flow and pro- 
 duction of the previous year. (T. D. 2447.) 
 
 Nonresident aliens. 
 
 Sec. 6. That in computing net income in the case of a nonresident 
 alien — 
 
 (a) For the purpose of the tax there shall be allowed as deduc- 
 tions — 
 
 First. The necessary expenses actually paid in carrying on any 
 business or trade conducted by him within the United States, not 
 including personal, living, or family expenses. 
 
 Second. The proportion of all interest paid within the year by such 
 person on his indebtedness which the gross amount of his income for 
 the year derived from sources within the United States bears to the 
 gross amount of his income for the year derived from all sources 
 within and without the United States, but this deduction shall bo 
 allowed only if such person includes in the return required by section 
 eight all the information necessary for its calculation ; 
 
 Amended by section 1202, act of October 3, 1917, p. 891. 
 
 Third. Taxes paid within the year imposed by the authority of the 
 United States, or its Territories, or possessionSj or under the authority 
 of any State, county, school district, or municipality, or other taxmg 
 subdivision of any State, paid within the United States, not including 
 those assessed against local benefits; 
 
 Amended by sectBigitM&d ib^ Mi&et&O^f^, 1917, p. 891. 
 
APPENDIX. 799 
 
 Fourth. Losses actually sustained during the year, incurred in 
 business or trade conducted by him within the United States, and 
 losses of property within the United States arising from fires, storms, 
 shipwreck, or other casualty, and from theft, when such losses are not 
 compensated for by insurance or otherwise: Provided, That for the 
 purpose of ascertaining the amount of such loss or losses sustained 
 in trade, or speculative transactions not in trade, from the same or 
 any kind of property acquired before March first, nineteen hundred 
 and thirteen, the fair market price or value of such property as of 
 March first, nineteen hundred and thirteen, shall be the basis for de- 
 termining the amount of such loss or losses sustained ; 
 
 Fifth. In transactions entered into for profit but not connected 
 with his business or trade, the losses actually sustained therein during 
 the year to an amount not exceeding the profits arising therefrom in 
 the United States; 
 
 Sixth. Debts arising in the course of business or trade conducted by 
 him within the United States due to the taxpayer actually ascer- 
 tained to be worthless and charged off within the year; 
 
 Seventh. A reasonable allowance for the exhaustion, wear and tear 
 of property within the United States arising out of its use or employ- 
 ment in the business or trade; (a) in the case of oil and gas wells a 
 reasonable allowance for actual reduction in flow and production to 
 be ascertained not by the flush flow, but by the settled production 
 or regular flow; (b) in the case of mines a reasonable allowance for 
 depletion thereof not to exceed the market value in the mine of the 
 product thereof which has been mined and sold during the year for 
 which the return and computation are made, such reasonable allow- 
 ance to be made in the case of both (a) and (b) under rules and 
 regulations to be prescribed by the Secretary of the Treasury : Pro- 
 vMed, That when the allowance authorized in (a) and (b) shall equal 
 the capital originally invested, or in case of purchase made prior to 
 March first, nineteen hundred and thirteen, the fair market value as 
 of that date, no further allowance shall be made. No deduction shall 
 be allowed for any amount paid out for new buildings, permanent 
 improvements, or betterments, made to increase the value of any 
 property or estate, and no deduction shall be made for any amount 
 of expense of restoring property or making good the exhaustion 
 thereof for which an allowance is or has been made. 
 
 (b) There shall also be allowed the credits specified by subdivi- 
 sions (b) and (c) of section five. 
 
 Amended bv section 1202, act of October 3, 1917, by adding paragraph 
 "(c) ; p. 892. 
 
 Personal exemption. 
 
 Sec. t. (a) That for the purpose of the normal tax only, there 
 shall be allowed as an exemption in the nature of a deduction from 
 the amount of the net income of each of said persons, ascertained as 
 provided herein, the sum of $3,000, plus $1,000 additional if the 
 person making the return be a head of a family or a married man 
 with a wife living with him, or plus the sum of $1,000 additional if 
 the person making the return be a married woman with a husband 
 living with her; but in no event shall this additional exemption of 
 $1,000 be deducted by both a husband and a wife: Provided, That 
 onlv one deduction of_$4,000, shall .be mads from the aggregate in- 
 come of both husbaiSW^fCf^JW'MK^^- - es -s - - 
 
 7'ir\g together: Provided 
 
800 
 
 APPENDIX. 
 
 further That guardians or trustees shall be allowed to make this 
 personal exemption as to income derived from the property of which 
 such guardian or trustee has charge in favor of each ward or cestui 
 que tvMst: Provided further, That in no event shall a ward or cestui 
 que trust be allowed a greater personal exemption than $3,000, or, 
 it married, $4,000, as provided m this paragraph, from the amount 
 ot net income received from all sources. There shall also be allowed 
 an exemption from the amount of the net income of estates of de- 
 cea_sed persons during the period of administration or settlement, 
 and of trust or other estates the income of which is not distributed 
 annually or regularly under the provisions of paragraph (b), section 
 two, the sum of $3,000, including such deductions as are allowed 
 under section five. 
 
 Amended by section 1203 (1), act of October 3, 1917; p. 892. 
 (b) A nonresident alien individual may receive the benefit of the 
 exemption provided for in this section only by filing or causing to 
 be filed with the collector of internal revenue a true and accurate 
 return of his total income, received from all sources, corporate or 
 otherwise, in the United States, in the manner prescribed by this 
 title ; and in case of his failure to file such return the collector shall 
 collect the tax on such income, and all property belonging to such 
 nonresident alien individual shall be liable to distraint for the tax. 
 Repealed by section 1203 (2), act of October 3, 1917; p. 892. 
 
 Head of family is person who actually supports and maintains one or 
 more individuals who are closely connected with him by blood relation- 
 ship, relationship by marriage or by adoption, and whose right to exer- 
 cise family control and provide for these dependents Is based upon some 
 moral or legal obligation. (T. D. 2427.) 
 
 Heads of families and married men with wives living with them in- 
 clude only persons whose families or wives actually reside with them. 
 (T. D. 2692.) 
 
 Betnrm 
 
 Sec. 8. (a) The tax shall be computed upon the net income, as 
 thus ascertained, of each person subject thereto, received in each 
 preceding calendar year ending December thirty-first. 
 
 I (b) On or before the first day of March, nineteen hundred and 
 seventeen, and the first day of March in each year thereafter, a true 
 
 ' and accurate return under oath shall be made by each person of 
 lawful age, except as hereinafter provided, having a net income of 
 $3,000 or over for the taxable year to the collector of internal reve- 
 nue for the district in which such person has his legal residence or 
 principal place of business, or if there be no legal residence or 
 place of business in the United States, then with the collector of 
 internal revenue at Baltimore, Maryland, in such form as the Com- 
 missioner of Internal Eevenue, with the approval of the Secretary 
 of the Treasury, shall prescribe, setting forth specifically the gross 
 amount of income from all separate sources, and from the total 
 thereof deducting the aggregate items of allowances herein author- 
 ized : Provided, That the Commissioner of Internal Revenue shall 
 have authority to grant a reasonable extension of time, in meritori- 
 ous cases, for filing returns of income by persons residing or traveling 
 abroad who are required to make and file returns of income and 
 who are unable to file said returns on or before March first of each 
 year; Provided furthOigW^es^ b^^lVflSfCfSS^ return may be made by 
 
APPENDIX. 801 
 
 an agent when by reason of illness, absence, or nonresiclence the 
 person liable for said return is unable to make and render the same, 
 the agent assuming the responsibility of making the return and in- 
 curring penalties provided for erroneous, false, or fraudulent return. 
 
 (c) Guardians, trustees, executors, administrators, receivers, con- 
 servators, and all persons, corporations, or associations acting in any 
 fiduciary capacity, shall make and render a return of the income of 
 the person, trust, or estate for whom or which they act, and be sub- 
 ject to all the provisions of this title which apply to individuals. 
 Such fiduciary shall make oath that he has sufficient knowledge of 
 the affairs of such person, trust, or estate to enable him to make 
 such return and that the same is, to the best of his knowledge and 
 belief, true and correct, and be subject to all the provisions of this 
 title which apply to individuals: Provided, That a return made by 
 one of two or more joint fiduciaries filed in the district where such 
 fiduciary resides, under such regulations as the Secretary of the 
 Treasury may prescribe, shall be a sufficient compliance with the 
 requirements of this paragraph. 
 
 Amendetl by section 1204 (1), act of October 3, 1917; p. 893. 
 
 (d) All persons, firms, companies, copartnerships, corporations, 
 joint-stock companies, or associations, and insurance companies, ex- 
 cept as hereinafter provided, in whatever capacity acting, having the 
 control, receipt, disposal, or payment of fixed or determinable annual 
 or periodical gains, profits, and income of another individual subject 
 to tax, shall in behalf of such person deduct and withhold from the 
 payment an amount equivalent to the normal tax upon the same 
 and make and render a return, as aforesaid, but separate and dis- 
 tinct, of the portion of the income of each person from which the 
 normal tax has been thus withheld, and containing also the name 
 and address of such person or stating that the name and address or 
 the address, as the case may be, are unknown : Provided, That the 
 provision requiring the normal tax of individuals to be deducted and 
 withheld at the source of the income shall not be construed to require 
 the withholding of such tax according to the two per centum normal 
 tax rate herein prescribed until on and after January first, nineteen 
 hundred and seventeen, and the law existing at the time of the pas- 
 sage of this Act shall govern the amount withheld or to be withheld 
 at the source until January first, nineteen hundred and seventeen. 
 
 That in either case mentioned in subdivisions (c) and (d) of this 
 section no return of income not exceeding $3,000 shall be required, 
 except as in this title provided. 
 
 Eepealed by section 1204 (2), act of October 3, 1917; p. 894. 
 
 (e) Persons carrying on business in partnership shall be liable for 
 income tax only in their individual capacity, and the share of the 
 profits of the partnership to which any taxable partner would be 
 entitled if the same were divided, whether divided or otherwise, shall 
 be returned for taxation and the tax paid under the provisions of this 
 title : Provided, That from the net distributive interests on which the 
 individual members shall be liable for tax, normal and additional, 
 there shall be excluded their proportionate shares received from inter- 
 est on the obligations of a State or any political or taxing subdivision 
 thereof and upon the obligations of the United States and its posses- 
 
 ] 401 84°— 20 — 51 Digitized by Microsoft® 
 
802 
 
 APPENDIX. 
 
 sions, and all taxes paid to the United States or to any possession 
 thereof, or to any State, county, or taxing subdivision of "a State, and 
 that for the purpose of computing the normal tax there shall be 
 allowed a credit, as provided by section five, subdivision (b), for 
 their proportionate share of the profits derived from dividends. And 
 such partnership, when requested by the Commissioner of Internal 
 Revenue, or any district collector, shall render a correct return of the 
 earnings, profits, and income of the partnership, except income ex- 
 empt under section four of this Act, setting forth the item of the 
 gross income and the deductions and credits allowed by this title, and 
 the names and addresses of the individuals who would be entitled 
 to the net earnings, profits, and income, if distributed. 
 
 Amended by section 1204 (1), act of October 3, 1917; p. 893. 
 
 (f ) In every return shall be included the income derived from divi- 
 dends on the capital stock or from the net earnings of any corpora- 
 tion, joint-stock company or association, or insurance company, ex- 
 cept that in the case of nonresident aliens such income derived from 
 sources without the United States shall not be included. 
 
 (g) An individual keeping accounts upon any basis other than that 
 of actual receipts and disbursements, unless such other basis does not 
 clearly reflect his income, may, subject to regulations made by the 
 Commissioner of Internal Revenue, with the approval of the Secre- 
 tary of the Treasury, make his return upon the basis upon which his 
 accounts are kept, in which case the tax shall be computed upon his 
 income as so returned. 
 
 Returns upon basis of inventories of merchandise, etc., and of securi- 
 ties lield by dealers. (T. Ds. 2609, 2649, 2740, 2744.) 
 
 Instructions governing preparation of returns by farmers. (T. D. 
 2665.) 
 
 Assessment and administration. 
 
 Sec. 9. (a) That all assessments shall be made by the Commis- 
 sioner of Internal Revenue and all persons shall be notified of the 
 amount for which they are respectively liable on or before the first 
 day of June of each successive year, and said amounts shall be paid 
 on or before the fifteenth day of June, except in cases of refusal or 
 neglect to make such return and in cases of erroneous, false, or frau- 
 dulent returns, in which cases the Commissioner of Internal Revenue 
 shall, upon the discovery thereof, at any time within three years 
 after said return is due, or has been made, make a return upon infor- 
 mation obtained as provided for in this title or by existing law, or 
 require the necessary corrections to be made, and the assessment 
 made by the Commissioner of Internal Revenue thereon shall be 
 paid by such person or persons immediately upon notification of the 
 amount of such assessment ; and to any sum or sums dixe and unpaid 
 after the fifteenth day of June in any year, and for ten days after 
 notice and demand thereof by the collector, there shall be added the 
 sum cf five per centum on the amount of tax unpaid, and interest at 
 the rate of one per centum per month upon said tax from the time 
 the same became due, except from the estates of insane, deceased, 
 or insolvent persons. 
 
 (b) All persons, firms, copartnerships, companies, corporations, 
 joint-stock companies, or associations, and insurance companies, in 
 whatever capacity acting, including lessees or mortgagors of real or 
 
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APPENDIX. 803 
 
 ■persoiml property, teustees acting in any trust capacity, executors, 
 administrators, receivers, conservators, employers, and all officers 
 and employees of the United States having the control, receipt, 
 custody, disposal, or payment of interest, rent, salaries, wages, pre- 
 miums, annuities, compensation, remuneration, emoluments, or 
 other fixed or determinable annual or periodical gains, profits, and 
 income of anotlier person, exceeding $3,000 for any taxable year, 
 other than income derived from dividends on capital stock, or from 
 the net earnings of corporations and joint-stock companies or asso- 
 ciations, or insurance companies, tlie income of "svhich is taxable 
 under this title, who are required to make and render a return in 
 behalf of another, as provided herein, to the collector of his, her, or 
 its dislriat, are hereby authorized and required to deduct and with- 
 hold from sneh annual or periodical gains, profits, and income such 
 sum as will be sufficient to pay tlie normal tax imposed thereon by 
 this title, and ^all pay the amount withheld to the officer of the 
 United States Government authorized to receive the same; and 
 they are each hereby made personally liable for such tax, and they 
 are each hereby indemnified again^ every person, corporation, asso- 
 ciation, or demand whatsoever for all payments which they shall 
 make in pursuance and by virtue of this title. 
 
 In all cases where the income tax of a person is withheld and 
 deducted and paid or to be paid at the source, such person shall not 
 receive the benefit of the personal exemption allowed in section 
 seven of this title except by an application for refund of the tax un- 
 less he shall, not less than thirty days prior to the -day on which the 
 return of his income is due, file with the person who is required to 
 withhold and pay tax for him a signed notice in writing claiming 
 the benefit of sucli exemption, and tlierenpon no tax shall be with- 
 held upon the amoirnt of such exemption: Provided^ That if any 
 person for the purpose of obtaining any allowance or Teduetion by 
 virtue of a claim for such exemption, either for himself or for any 
 other person, knowingly makes any false statement or false or 
 fraudulent representation, he shall be liable to a penalty of not 
 exceeding $300, 
 
 And where the income tax is paid or to be paid at the source, no 
 person shall be allowed the ben^t of any deduction provided for in 
 sections five or six of this title unless he shall, not less than thirty days 
 piior to the day on which the return of his income is due, either (1) 
 file with the person who is required to withhold and pay tax for him 
 a tone and correct return of lis gains, profits, and income from all 
 other sources, and -also the deductions asked for, and th.e sliowing 
 thus made shall then become a part of the return to be made in his 
 behalf by the person required to withliold and pay the tax, or (2) 
 likewise make application for deductions to the collector of the dis- 
 trict in which return is made or to be made for him : Provided, That 
 when any amount allowable as a deduction is known at the time of 
 receipt of fixed annual or periodical income by an individual subject 
 to tax, he may file with the person, firm, or corporation making the 
 payment a certificate, under penalty for false claim, and in such 
 fonn as shall be prescribed by the Commissioner of Internal Bevenue, 
 Abating the amount of such deduction and rnalring a claim for an 
 
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804 APPENDIX. 
 
 allowance of the same against the amount of tax otherwise required 
 to be deducted and withheld at the source of the income, and such 
 certificate shall likewise become a part of the return to be made in 
 his behalf. 
 
 If such person is absent from the United States, or is unable owing 
 to serious illness to make the return and application above provided 
 for, the return and application may be made by an agent, he making 
 oath that he has sufficient knowledge of the affairs and property or 
 his principal to enable him to make a full and complete return, and 
 that the return and application made by him are full and complete. 
 Amended by section 1205 (1), act of October 3, 1917; p. 894. 
 
 (c) The amount of the normal tax hereinbefore imposed shall be 
 deducted and withheld from fixed or determinable annual or period- 
 ical gains, profits, and income derived from interest upon bonds and 
 mortgages, or deeds of trust or other similar obligations of corpo- 
 rations, joint-stock companies, associations, and insurance companies, 
 whether payable annually or at shorter or longer periods, although 
 such interest does not amount to $3,000, subject to the provisions of 
 this title requiring the tax to be withheld at the source and deducted 
 from annual income and returned and paid to the Government. 
 
 Amended by section 1205 (1), act of October 3, 1917; p. 894. 
 
 (d) And likewise the amount of such tax shall be deducted and 
 Avithheld from coupons, checks, or bills of exchange for or in pay- 
 ment of interest upon bonds of foreign countries and upon foreign 
 mortgages or like obligations (not payable in the United States), 
 and also from coupons, checks, or bills of exchange for or in pay- 
 ment of any dividends upon the stock or interest upon the obligations 
 of foreign corporations, associations, and insurance companies en- 
 gaged in business in foreign countries. 
 
 Repealed by section 1205 (2), act of October 3, 1917; p. 895. 
 And the tax in such cases shall be withheld, deducted, and returned 
 for and in behalf of any person subject to the tax hereinbefore im- 
 posed, although such interest or dividends do not exceed $3,000, by 
 (1) any banker or person who shall sell or otherwise realize coupons, 
 checks, or bills of exchange drawn or made in payment of any such 
 interest or dividends (not payable in the United States), and (2) 
 any person who shall obtain payment (not in the United States) , in 
 behalf of another of such dividends and interest by means of coupons, 
 checks, or bills of exchange, and also (3) any dealer in such coupons 
 who shall purchase the same for any such dividends or interest (not 
 payable in the United States) , otherwise than from a banker or an- 
 other dealer in such coupons. 
 
 (e) Where the tax is withheld at the source, the benefit of the 
 exemption and the deductions allowable under this title may be had 
 by complying with the foregoing provisions of this section. 
 
 Repealed by section 1205 (2), act of October 3, 1917; p. 895. 
 
 (f ) All persons, firms, or corporations undertaking as a matter of 
 business or for profit the collection of foreign payments of such in- 
 terest or dividends by means of coupons, checks, or bills of exchange 
 shall obtain a license from the Commissioner of Internal Revenue,' 
 and shall be subject to such regulations janabling the Government to 
 
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APPENDIX. 805 
 
 ascertain a,nd verify tlie due withholding and payment of the income 
 tax required to be withheld and paid as the Commissioner of Internal 
 Revenue, with the approval of the Secretary of the Treasury, shall 
 prescribe; and any person who shall knowingly undertake to collect 
 such payments as aforesaid without having obtained a license there- 
 for, or without complying with such regulations, shall be deemed 
 guilty of a misdemeanor and for each offense be fined in a sum not 
 exceeding $5,000, or imprisoned for a term not exceeding one year, 
 or both, in the discretion of the court. 
 
 Amended by section 1205 (1), act of October 3, 1917; p. 894. 
 
 (g) The tax herein imposed upon gains, profits, and income not 
 falling under the foregoing and not returned and paid by virtue of 
 the foregoing shall be assessed by personal return under rules and 
 regulations to be prescribed by the Commissioner of Internal Revenue 
 and approved by the Secretary of the Treasury. The intent and 
 purpose of this title is that all gains, profits, and income of a taxable 
 class, as defined by this title, shall be charged and assessed with 
 the corresponding tax, normal and additional, prescribed by this 
 title, and said tax shall be paid by the owner of such income, or the 
 proper representative having the receipt, custody, control, or disposal 
 of the same. For the purpose of this title ownership or liability 
 shall be determined as of the year for which a return is required to 
 be rendered. 
 
 The provisions of this title relating to the deduction and payment 
 of the tax at the source of income shall only apply to the normal tax 
 hereinbefore imposed upon individuals. 
 
 Amended by section 1205 (1), act of October 3, 1917; p. 894. 
 
 Corporations and other organizations exempt under section 11 of Part 
 II are not relieved from withholding requirements of section 9. (T. D. 
 2407.) 
 
 Addition of 5 per cent penalty and interest where taxpayer is absent 
 in foreign country or is traveling abroad or is absent from home or place 
 of business in military or other service of the country. (T. D. 2679.) 
 
 Tax liability of income received from sources within the United States 
 by foreign Governments or their resident agents. (T. D. 2425.) 
 
 Part II — On Corporations. 
 
 Imposition of tax. 
 
 Seg. 10. That there shall be levied, assessed, collected, and paid 
 annually upon the total net income received in the preceding calendar 
 year from all sources by every corporation, joint-stock company or 
 association, or insurance company, organized in the Unitecf States, 
 no matter how created or organized but not including partnerships, 
 a tax of two per centum upon such income; and a like tax shall be 
 levied, assessed, collected, and paid annually upon the total net 
 income received, in the preceding calendar year from all sources 
 within the United States by every corporation, joint-stock company 
 or association, or insurance company organized, authorized, or exist- 
 ing under the laws of any foreign country, including interest on 
 bonds, notes, or other interest-bearing obligations of residents, cor- 
 porate or otherwise, and including the income derived from dividends 
 on capital stock or from net earnings of resident corporations, 
 jojnt-stock companies or associations, or insurance companies whose 
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806 
 
 APPENDIX. 
 
 net income is taxable under this title: Provided, That the term 
 dividends " as used in this title shall be held to mean any distribu- 
 tion made or ordered to be made by a corporation, joint-stock 
 company, association, or insurance company, out of its earnings or 
 profits accrued since March first, nineteen hundred and thirteen, 
 and payable to its shareholders, whether ia cash or in stock of the 
 corporation, joint-stock company, association, or insurance com- 
 pany, which stock dividend shall be considered income, to the 
 amount of its cash value. 
 
 The foregoing tax rate shall apply to the total net income received 
 by every taxable corporation, joint-stock company or association, or 
 insurance company in the calendar year nineteen hundred and six- 
 teen and m each year thereafter, except that if it has fixed its own 
 fiscal year under the provisions of existing law, the foregoing rate 
 shall apply to the proportion of the total net income returned for the 
 fiscal year ending prior to December thirty-first, nineteen hundred 
 and sixteen, which the period between January first, nineteen hun- 
 dred and sixteen, and the end of such fiscal year bears to the whole of 
 such fiscal year, and the rate fixed in Section II of the Act approved 
 October third, nineteen hundred and thirteen, entitled " An Act to 
 reduce tariff duties and to provide revenue for the Government, and 
 for other purposes," shall apply to the remaining portion of the total 
 net income returned for such fiscal year. 
 
 For the purpose of ascertaining the gain derived or loss sustained 
 from the sale or other disposition by a corporation, joint-stock com- 
 pany or association, or insurance company, of property, real, per- 
 sonal, or mixed, acquired before March first, nineteen hundred and 
 thirteen, the fair market price or value of such property as of March 
 first, nineteen hundred and thirteen, shall be the basis for deter- 
 mining the amount of such gain derived or loss sustained. 
 Amendea by section 1206, act of October 3, 1917 ; p. 895, 
 
 Conditional and other exemptions. 
 
 Sec. 11. (a) That there shall not be taxed under this title any in- 
 come received by any — ■ 
 
 First. Labor, agricultural, or horticultural organization; 
 
 Second. Mutual savings bank not having a capital stock repre- 
 sented by shares,' 
 
 Third. Fraternal beneficiary society, order, or association, operat- 
 ing under the lodge system or for the exclusive benefit of the members 
 of a fraternity itself operating under the lodge system, and providing 
 for the payment of life, sick, accident, or other benefits to the mem- 
 bers of such society, order, or association or their dependents ; 
 
 Fourth. Domestic building and loan association and cooperative 
 banks without capital stock organized and operated for mutual pur- 
 poses and without profit; 
 
 Fifth. Cemetery company owhed and operated exclusively for the 
 benefit of its members ; 
 
 Sixth. Corporation or association organized and operated ex- 
 clusively for religious, charitable, scientific, or educational purposes, 
 no part of the net income of which inures to the benefit of any private 
 stockholder or individual; 
 
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APPENDIX. 807 
 
 Seventh. Business league, chamber of commerce, or board of trade, 
 not organized for profit and no part of the net income of which in- 
 ures to the benefit of any private stockholder or individual ; 
 
 Eighth. Civic league or organization not organized for profit but 
 operated exclusively for the promotion of social welfare ; 
 
 Ninth. Club organized and operated exclusively for pleasure, rec- 
 reation, and other nonprofitable purposes, no part of the net income 
 of which inures to the benefit of any private stockholder or member ; 
 
 Tenth. Farmers' or other mutual hail, cyclone, or fire insurance 
 company, mutual ditch or irrigation company, mutual or cooperative 
 telephone company, or like organization of a purely local character, 
 the income of which consists solely of assessments, dues, and fees 
 collected from members for the sole purpose of meeting its expenses ; 
 
 Eleventh. Farmers', fruit growers', or like association, organized 
 and operated as a sales agent for the purpose of marketing the prod- 
 ucts of its members and turning back to them the proceeds of sales, 
 less the necessary selling expenses, on the basis of the quantity of 
 produce furnished by them ; 
 
 Twelfth. Corporation or association organized for the exclusive 
 purpose of holding title to property, collecting income therefrom, 
 and turning over the entire amount thereof, less expenses, to an 
 organization which itself is exempt from the tax imposed by this 
 title; or 
 
 Thirteenth. Federal land banks and national farm-loan associa- 
 tions as provided in section twenty-six of the Act approved July 
 seventeenth, nineteen hundred and sixteen, entitled "An Act to pro- 
 vide capital for agricultural development, to create standard forms 
 of investment based upon farm mortgage, to equalize rates of interest 
 upon farm loans, to furnish a market for United States bonds, to 
 create Government depositaries and financial agents for the United 
 States, and for other purposes." 
 
 Fourteenth. Joint stock land banks as to income derived from 
 bonds or debentures of other joint stock land banks or any Federal 
 land bank belonging to such joint stock land bank. 
 
 (b) There shall not be taxed under this title any income derived 
 from any public utility or from the exercise of any essential govern- 
 mental function accruing to any State, Territory, or the District of 
 Columbia, or any political subdivision of a State or Territory, nor 
 any income accruing to the government of the Philippine Islands or 
 Porto Kico, or of any political subdivision of the Philippine Islands 
 or Porto Eico : Provided, That whenever any State, Territory, or the 
 District of Columbia, or any political subdivision of a State or Ter- 
 ritory, has, prior to the passage of this title, entered in good faith 
 into a contract with any person or corporation, the object and pur- 
 pose of which is to acquire, construct, operate,^ or maintain a public 
 utility, no tax shall be levied under the provisions of this title upon 
 the income derived from the operation of such public utility, so far 
 as the payment thereof will impose a loss or burden upon such State, 
 Territory, or the District of Columbia, or a political subdivision of 
 a State or Territory ; but this provision is not intended to confer upon 
 such person or corporation any financial gain or exemption or to 
 relieve such person or corporation from the payment of a tax as pro- 
 vided for in this title upon the part or portion of the said income to 
 
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808 
 
 APPENDIX. 
 
 which such person or corporation shall be entitled under such con- 
 tract. 
 
 Corporations and other organizations exempt on -incomes under tliia 
 section are not relieved from withholding requirements set forth in sec- 
 tion 9. (T. D. 2407.) 
 
 Cooperative merchandising organizations held subject to provisions of 
 this act. (T. D. 2737.) 
 
 Proof necessary to be filed by certain organizations to establish the 
 fact that they are exempt. (T. D. 2693.) 
 
 Exemption of corporation dividends paid in form of Liberty loan bonds. 
 (T. D. 2512.) 
 
 BeductiODB. 
 
 Sec. 12. (a) In the case of a corporation, joint-stock company or 
 association, or insurance company, organized in the United States, 
 such net income shall be ascertained by deducting from the gross 
 amount of its income received within the year from all sources — 
 
 First. All the ordinary and necessary expenses paid within the 
 year in the maintenance and operation of its business and properties, 
 including rentals or other payments required to be made as a condi- 
 tion to the continued use or possession of property to which the cor- 
 poration has not taken or is not taking title, or in which it has no 
 equity. 
 
 Second. All losses actually sustained and charged off within the 
 year and not compensated by insurance or otherwise, including a 
 reasonable allowance for the exhaustion, wear and tear of property 
 arising out of its vise or employment in the business or trade ; (a) in 
 the case of oil and gas wells a reasonable allowance for actual reduc- 
 tion in flow and production to be ascertained not by tlie flush flow, 
 but by the settled production or regular flow ; (b) in the case of mines 
 a reasonable allowance for depletion thereof not to exceed the market 
 value in the mine of the product thereof which has been mined and 
 sold during the year for which the return and computation are made, 
 such reasonable allowance to be made in the case of both (a) and (b) 
 under rules and regulations to be prescribed by the Secretary of the 
 Treasury : Provided, That when the allowance authorized in (a) and 
 (b) shall equal the capital originally invested, or in case of purchas© 
 made prior to March first, nineteen hundred and thirteen, the fair 
 market value as of that date, no further allowance shall be made; 
 and (c) in the case of insurance companies, the net addition, if any, 
 required by law to be made within the year to reserve funds and the 
 sums other than dividends paid within the year on policy and annuity 
 contracts: Provided, That no deduction shall be allowed for any 
 amount paid out for new buildings, permanent improvements, or 
 betterments made to increase the value of any property or estate, 
 and no deduction shall be made for any amount of expense of re- 
 storing property or making good the exhaustion thereof for which 
 an allowance is or has been made: Provided further. That mutual 
 fire and mutual employers' liability and mutual workmen's compensa- 
 tion and mutual casualty insurance companies requiring their mem- 
 bers to make premium deposits to provide for losses and expenses 
 shall not return as income any portion of the premium deposits re- 
 turned to their policyholders, but shall return as taxable income all 
 income received by them from all other sources plus such portions 
 of the premium deposits as are retained by the companies for purposes 
 
 Digitized by Microsoft® 
 
APPENDIX, 809 
 
 other than the payment of losses and expenses and reinsurance re- 
 serves: Promded further, That mutual marine insurance companies 
 shall include in their return of gi'oss income gross premiums collected 
 and received by them less amounts paid for reinsurance, but shall be 
 entitled to include in deductions from gross income amounts repaid 
 to policyholders on account of premiums previously paid by them 
 and interest paid upon such amounts between the ascertainment 
 thereof and the payment thereof, and life insurance companies shall 
 not include as income in any year such portion of any actual premium 
 received from any individual policyholder as shall have been paid 
 back or credited to such individual policyholder, or treated as an 
 abatement of premium of such individual policyholder, within such 
 year; 
 
 Third. The amount of interest paid within the year on its indebted- 
 ness to an amount of such indebtedness not in excess of the sum of (a) 
 the entire amount of the paid-up capital stock outstanding at the 
 cloee of the year, or, if no capital stock, the entire amount of capital 
 employed in the business at the close of the year, and (b) one-half of 
 its interest-bearing indebtedness then outstanding: Provided, That 
 for the purpose of this title preferred capital stock shall not be con- 
 sidered interest-bearing indebtedness, and interest or dividends paid 
 upon this stock shall not be deductible from gross income : Provided 
 further, That in cases wherein shares of capital stock are issued with- 
 out par or nominal value, the amount of paid-up capital stock, within 
 the meaning of this section, as represented by such shares, will be the 
 amount of cash, or its equivalent, paid or transferred to the corpora- 
 tion as a consideration for such shares : Provided further, That in the 
 case of indebtedness wholly secured by property collateral, tangible 
 or intangible, the subject of sale or hypothecation in the ordinary 
 business of such corporation, joint-stock company or association as a 
 dealer only in the property constituting such collateral, or in loaning 
 the funds thereby procured, the total interest paid by such corpora- 
 tion, company, or association within the year on any such indebted- 
 ness may be deducted as a part of its expenses of doing business, but 
 interest on such indebtedness shall only be deductible on an amount 
 of such indebtedness not in excess of the actual value of such propeiiy 
 collateral : Provided further. That in the case of bonds or other in- 
 debtedness, which have been issued with a guaranty that the interest 
 payable thereon shall be free from taxation, no deduction for the pay- 
 ment of the tax herein imposed, or any other tax paid pursuant to 
 such guaranty, shall be allowed ; and in the case of a bank, banking 
 association, loan or trust company, interest paid within the year on 
 deposits or on moneys received for investment and secured by interest- 
 bearing certificates of indebtedness issued by such bank, banking 
 association, loan or trust company ; 
 
 Amended by section 3207 (1), act of October 3, 1917; p. 896. 
 
 Fourth. Taxes paid within the year imposed by the authority of 
 the United States, or its Territories, or possessions, or any foreign 
 country, or under the authority of any State, county, school district, 
 or municipality, or other taxing subdivision of any State, not includ- 
 ing those assesvoed against local benefits. 
 
 Amended by section 1207 (1), act of October 3, 1917; p. 896. 
 
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810 
 
 APPENDIX. 
 
 (b) In the case of a corporation, joint-stock companjr or associst- 
 tion, or insurance company, organized, authorized, or existing under 
 the laws of any foreign country, such net income shall be ascertained 
 by deducting from the gross amount of its income received within the 
 year from all sources within the United States — 
 
 First. All the ordinary and necessary expenses actually paid within 
 the year out of earnings in the maintenance and operation of its 
 business and property within the United States, including rentals 
 or other payments required to be made as a condition to the continued 
 use or possession of property to which the corporation has not taken 
 or is not taking title, or in which it has no equity. 
 
 Second. All losses actually sustained within the year in business 
 or trade conducted by it within the United -States and not compen- 
 sated by insurance or otherwise, including a reasona;ble allowance 
 for the exhaustion, wear and tear of property arising out of its use 
 or employment in the business or trade; (a) and in the case of 
 oil and gas wells a reasonable allowance for actual reduction in flow 
 and production to be ascertained not by the flush flow, but by the 
 settled production or regular flow ; (b) in the case of mines a reason- 
 able allowance for depletion thereof not to exceed the market value 
 in the mine of the product thereof which has been mined and sold 
 during the year for which the return and computation are made, 
 such reasonable allowance to be made in the case of both (a) and (b) 
 under rules and regulations to be prescribed by the Secretary of the 
 Treasury: Provided, That when the allowance authorized in (a) 
 and (b) shall equal the capital originally invested, or in case of pur- 
 chase made prior to March first, nineteen hundred and thirteen, the 
 fair market value as of that date, no further allowance shall be made ; 
 and (c) in the case of insurance companies, the net addition, if any, 
 required by law to be made within the year to reserve funds and the 
 sums other than dividends paid within the year on policy and annuity 
 contracts: Provided, That no deduction shall be allowed for any 
 amount paid out for neAv buildings, permanent improvements, or 
 betterments, made to increase the value of any property or estate, 
 and no deduction shall be made for any amount of expense of re- 
 storing property or making good the exhaustion thereof for which 
 an allowance is or has been made: Provided further, That mutual 
 fire and mutual employers' liability and mutual workmen's com- 
 pensation and mutual casualty insurance companies requiring their 
 members to make premium deposits to ;provide for losses and expenses 
 shall not return as income any portion of the premium deposits 
 returned to their policyholders, but shall return as taxable income 
 all income received by them from all other sources plus such portions 
 of the premium deposits as are retained by the companies for pur- 
 poses other than the payment of losses and expenses and reinsurance 
 reserves : Provided further, That mutual marine insurance companies 
 shall include in their return of gross income gross premiums collected 
 and received by them less amounts paid for reinsurance, but shall be 
 entitled to include in deductions from gross income amounts repaid 
 to policyholders on account of premiums previously paid by them, 
 and interest paid upon such amounts between the ascertainment 
 thereof and the payment thereof, and life insurance companies shall 
 not include as income in any year such portion of any actual pre- 
 mium received from any individual policyholder as shall have been 
 Digitized by Microsoft® 
 
APPENDIX. 811 
 
 paid back or credited to such individual policyholder, or treated as 
 an abatement of premium of such individual policyholder, within 
 such year ; 
 
 Third. The amount of interest paid within the year on its indebted- 
 ness to an amount of such indebtedness not in excess of the proportion 
 of the sum of (a) the entire amount of the paid-up capital stock out- 
 standing at the close of the year, or, if no capital stock, the entire 
 amount of the capital employed in the business at the close of the 
 year, and (b) one-half of its interest-bearing indebtedness then out- 
 standing, which the gross amount of its income for the year from 
 business transacted and capital invested within the United States 
 bears to the gross amount of its income derived from all sources 
 within and without the United States : Provided, That in the case of 
 bonds or other indebtedness which have been issued with a guaranty 
 that the interest payable thereon shall be free from taxation, no de- 
 duction for the payment of the tax herein imposed or any other tax 
 paid pursuant to such guaranty shall be allowed; and in case of a 
 bank, banking association, loan or trust company, or branch thereof, 
 interest paid within the year on deposits by or on moneys received 
 for iuA'^estment from either citizens or residents of the United States 
 and secured by interest-bearing certificates of indebtedness issued 
 by such bank, banking association, loan or trust company, or branch 
 thereof ; 
 
 Amended by section 1207 (2), act of October 3, 1917: p. 897. 
 
 Fourth. Taxes paid within the year imposed by the authority of 
 the United States, or its Territories, or possessions, or under the 
 authority of any State, county, school district, or municipality, or 
 other taxing subdivision of any State, paid within the United States, 
 not including those assessed against local benefits ; 
 
 Amended by section 1207 (2), act of October 3, 1917; p. 897. 
 (c) In the case of assessment insurance companies, whether 
 domestic or foreign, the actual deposit of sums with State or Terri- 
 torial officers, pursuant to law, as additions to guarantee or reserve 
 funds shall be treated as being payments required by law to reserve 
 funds. 
 
 Keasonable allowance for wear and tear of property to be based on 
 cost of property or its fair market price or value as of March 1, 1913, 
 if acquired prior thereto. (T. D. 2754.) 
 
 Treatment for taxation purposes of amounts ostensibly paid as com- 
 pensation for services of officers and employees of business enterprises. 
 (T. D. 2696.) 
 
 Corporations, partnerships or individuals paying officers or business 
 employees salaries and wages during war period in which they are in 
 service of United States may deduct amounts paid as expenses. (T. D. 
 2660.) 
 
 Gifts or bonuses to employees may be deducted when made in good 
 faith and as additional compensation for services actually rendered. (T. 
 D. 2616.) 
 
 Premiums paid on policies insuring in favor of corporations lives of 
 officers and employees are not deductible; to extent that such payments 
 have not been previously deducted they may be deducted from proceeds 
 of policy when such proceeds are received, net proceeds being returned 
 as income. (T. D. 2519.) 
 
 Organization expenses are not an allowable deduction. (T. D. 2499.) 
 Reserves for depreciation and depletion held to constitute proper de- 
 duction, if reasonable, and are not to be disallowed if converted into 
 other forms of &^^Bigi^?^^b^iMr0S0ft® 
 
812 APPENDIX. 
 
 Corporations from whose property oil or gas Is produced may deduct 
 on account of depletion such percentage of fair marljet value as of Marcli 
 1, 1913, of the oil or gas property, if acquired prior to that date, or of 
 cost of property if acquired subsequently, as reduction in flow and pro- 
 duction of taxable year is percentage of flow and production of previous 
 year. (T. D. 2447.) 
 
 Corporations engaged in mining may compute depletion deductions on 
 basis of fair marlset value of mining content as of March 1, 1913, if 
 property was acquired prior to that date, or on basis of cost, if acquired 
 subsequently. (T. D. 2446.) 
 
 BetDrog. 
 
 Sec. 13. (a) The tax shall be computed upon the net income, as 
 thus ascertained, received within each preceding calendar year end- 
 ing December thirty -first : Provided, That any corporation, joint- 
 stock company or association, or insurance company, subject to this 
 tax, may designate the last day of any month in the year as the day 
 of the closing of its fiscal year and shall be entitled to have the tax 
 payable by it computed upon the basis of the net income ascertained 
 as herein provided for the year ending on the day so designated in 
 the year preceding the date of assessment instead of upon the basis 
 of the net income for the calendar year preceding the date of assess- 
 ment ; and it shall give notice of the day it has thus designated as the 
 closing of its fiscal year to the collector of the district in which its 
 principal business office is located at any time not less than thirty 
 days prior to the first day of March of the year in which its return, 
 would be filed if made upon the basis of the calendar year ; 
 
 (b) Every corporation, joint-stock company or association, or in- 
 surance company, subject to the tax hex'ein imposed, shall, on or be- 
 fore the first day of March, nineteen hundred and seventeen, and the 
 first day of March in each year thereafter, or, if it has designated a 
 fiscal year for the computation of its tax, then within sixty days 
 after the close of such fiscal year ending prior to December thirty- 
 first, nineteen hundred and sixteen, and the close of each such fiscal 
 year thereafter, render a true and accurate return of its annual net 
 income in the manner and form to be prescribed by the Commis- 
 sioner of Internal Kevenue, with the approval of the Secretary of 
 the Treasury, and containing such facts, data, and information as 
 are appropriate and in the opinion of the commissioner necessary to 
 determine the correctness of the net income returned and to carry out 
 the provisions of this title. The return shall be sworn to by the 
 president, vice president, or other principal officer, and by the treas- 
 urer or assistant treasurer. The return shall be made to the collector 
 of the district in which is located the principal office of the corpora- 
 tion, company, or association, where are kept its books of account 
 and other data from which the return is prepared, or in the case of 
 a foreign corporation, company, or association, to the collector of 
 the district in which is located its principal place of business in the 
 United States, or if it have no principal place of business, office, or 
 agency in the United States, then to the collector of internal revenue 
 at Baltimore, Maryland. All such returns shall as received be trans- 
 mitted forthwith by the collector to the Commissioner of Internal 
 Eevenue ; 
 
 (c) In cases wherein receivers, trustees in bankruptcy, or assignees 
 are operating the property or business of corporations, joint-stock 
 
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APPENDIX. 813 
 
 companies or associations, or insurance companies, subject to tax 
 imposed by this title, such receivers, trustees, or assignees shall make 
 returns of net income as and for such corporations, joint-stock com- 
 panies or associations, and insurance companies, in the same manner 
 and form as such organizations are hereinbefore required to make 
 returns, and any income tax due on the basis of such returns made 
 by receivers, trustees, or assignees shall be assessed and collected in 
 the same manner as if assessed directly against the organizations of 
 "whose business or properties they have custody and control ; 
 
 Trustee of bankrupt corporation, who is not carrying on its business, 
 but has received funds as result of compromise made by him with for- 
 eign corporation of claim for nonpayment of salary and commissions, is 
 not liable to pay income tax under this section. (In re Heller, Hirsh & 
 Co. 258 Fed. 208.) 
 
 (d) A corporation, joint-stock company or association, or insur- 
 ance company, keeping accounts upon any basis other than that of 
 actual receipts and disbursements, unless such other basis does not 
 clearly reflect its income, may, subject to regulations made by the 
 Commissioner of Internal Revenue, with the approval of the Secre- 
 tary of the Treasury, make its return upon the basis upon which its 
 accounts are kept, in which case the tax shall be computed upon its 
 income as so returned ; 
 
 (e) All the provisions of this title relating to the tax authorized 
 and required to be deducted and withheld and paid to the officer of 
 the United States Government authorized to receive the same from 
 the income of nonresident alien individuals from sources within the 
 United States shall be made applicable to incomes derived from in- 
 terest upon bonds and mortgages or deeds of trust or similar obli- 
 gations of domestic or other resident corporations, joint-stock com- 
 panies or associations, and insurance companies by nonresident alien 
 firms, copartnerships, companies, corporations, joint-stock companies 
 or associations, and insurance companies not engaged in business or 
 trade within the United States and not having any office or place of 
 business therein ; 
 
 Amended by section 1208, act of October 3, 1917 ; p. 898. 
 
 (f) Likewise, all the provisions of this title relating to the tax 
 authorized and required to be deducted and withheld and paid to 
 the officer of the United States Government authorized to receive 
 the same from the income of nonresident alien individuals from 
 sources within the United States shall be made applicable to income 
 derived from dividends upon the capital stock or from the net earn- 
 ings of domestic or other resident corpora,tions, joint-stock com- 
 panies or associations, and insurance companies by nonresident alien 
 companies, corporations, joint-stock companies or associations, and 
 insurance companies not engaged in business .or trade within the 
 United States and not having any office or place of business therein. 
 
 Returns on basis of inventories of merchandise, etc., and of securities 
 held by dealers. (T. Ds. 2609, 2649, 2740, 2744.) 
 
 Corporations may distribute earnings for accounting period ratably 
 over period for purpose of ascertaining earnings to date of dividend pay- 
 ment within such period. (T. D. 2678.) 
 
 Where books are kept on an accrued basis, accrued interest may be 
 deducted. (T. D. 2625.) 
 
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814 APPENDIX. 
 
 Corporations keeping books according to standard system, or in con- 
 formity witli requirements of some Federal, State^ or mtuiicipal autiior- 
 ity, may make returns on tasis on wliich books are kept, provided books 
 and Teturns reflect true net income. (T. D. 2433.) 
 
 Nonresident aiien record owners authorized to use income-tax cei-- 
 tifieate Form 1087 to disclose actual ownership and claim exemption from 
 withholding at source of domestic dividend payments. <T. D. 2452; 
 revising and modifying T. Ds. 2382 and 2401.) 
 
 Form 1012 adopted for use by debtor corporation in reporting iucomfe 
 tax withheld from dividends paid to nonresident alien -corporations, etc. 
 (T. D. 2388.) 
 
 Disclosure of identity of actual owners of stock by Dutch administra- 
 tion offices. (T. Ds. 2386 and 2669.) 
 
 Claim of exemption from withholding normal tax at sonrce of income 
 in United States by nonresident alien corporation, etc. {T. D. 2S74.) 
 
 Assessment and administration. 
 
 Sec. 14. (a) All assessments shall be made and the several cor- 
 porations, joint-stock companies or associations, and insurance com- 
 panies shall be notified of the amount for which they are respectively 
 liable on or before the first day of June of each successive year, and 
 said assessment shall be paid on or before the fifteen^ day of June. 
 Provided, That every corporation, joint-stock company or association, 
 and insurance company, computing taxes upon the income of the 
 fiscal year which it may designate in the manner hereinbefore pro- 
 vided, shall pay the taxes due under its assessment within one 
 .hundred and five days after the date upon which it is required to file 
 its list or return of income for assessment ; except in cases of refusal 
 or neglect to make such return, and in cases of erroneous, false, or 
 fraudulent returns, in which cases the Commissioner of Internal 
 Revenue shall, upon the discovery thereof, at any time within three 
 years after said return is due, make a return upon information 
 obtained as provided for in this title or by existing law; and the 
 assessment made by the Commissioner of Internal Revenue thereon 
 shall be paid by such corporation, joint-stock company or association, 
 or insurance company immediately upon notification of the amount 
 of such assessment ; and to any sum or sums due and unpaid after 
 the fifteenth day of June in aiiy year, or after one hundred and five 
 days from the date on which the return of income is required to be 
 made by the taxjjayer, and after ten days' notice and demand 
 thereof by the collector, there shall be added the sum of five per 
 centum on the amount of tax unpaid and interest at the rate of one 
 per centum per month upon said tax from the time the same becomes 
 due: Provided^ That upon the examination of any return of income 
 made pursuant to this title, the Act of August fifth, nineteen hundred 
 and nine, entitled "An Act to provide revenue, equalize duties and 
 encourage the industries of the United States, and for other pur- 
 poses," and the Act of October third, nineteen hundred and thirteen, 
 entitled, "An Act to reduce tariff duties and to provide revenue for 
 the Government, and for other purposes," if it shall appear that 
 amounts of tax have been paid in excess of those properly due, the 
 taxpayer shall be permitted to present a claim for refund thereof 
 notwithstanding the provisions of section thirty-two hundred and 
 twenty-eight of the Revised Statutes. 
 
 (b) When the assessment shall be made, as provided in this title, 
 the returns, together ffith any corcections thereof which may have 
 
APPENDIX. 815 
 
 been made by the commissioner, shall be filed in the office of the 
 Commissioner of Internal Revenue and shall constitute public records 
 and be open to inspection as such : Provided, That any and all such 
 returns shall be open to inspection only upon the order of the Presi- 
 dent, under rules and regulations to be prescribed by the Secretary 
 of the Treasury and approved by the President : Provided further, 
 That the proper officers of any State imposing a general income tax 
 may, upon the request of the governor thereof, have access to said 
 returns or to an abstract thereof, showing the name and income of 
 each such corporation, joint-stock company or association, or insur- 
 ance company, at such times and in such manner as the Secretary of 
 the Treasury may prescribe ; 
 
 Regulations governing inspection of returns. (T. D. 2961.) 
 Furnishing copies of returns. (T. D. 2962.) 
 
 (c) If any of the corporations, joint-stock companies or associa- 
 tions, or insurance companies aforesaid shall refuse or neglect to 
 make a return at the time or times hereinbefore specified in each 
 year, or shall render a false or fraudulent return, such corporation, 
 joint-stock company or association, or insurance company shall be 
 liable to a penalty of not exceeding $10,000 : Provided, That the Com- 
 missioner of Internal Revenue shall have authority, in the case of 
 either corporations or individuals, to grant a reasonable extension 
 of time in meritorious cases, as he may deem proper. 
 
 (d) That section thirty-two hundred and twenty-five of the Re- 
 vised Statutes of the United States be, and the same is hereby, 
 amended so as to read as follows : 
 
 " Sec. 3225. When a second assessment is made in case of any list, 
 statement, or return, which in the opinion of the collector or deputy 
 collector was false or fraudulent, or contained any understatement 
 or undervaluation, no tax collected under such assessment shall be 
 recovered by any suit unless it is proved that the said list, statement, 
 or return was not false nor fraudulent and did not contain any under- 
 statement or undervaluation ; but this section shall not apply to state- 
 ments or returns made or to be made in good faith under the laws of 
 the United States regarding annual depreciation of oil or gas wells 
 and mines." 
 
 Reopening of claims for refund rejected by CommLssloner because of 
 statute of limitations in existence at time. (T. D. 2396.) 
 
 Burden of proof in suits to recover taxes ; application of section 3225, 
 R. S., to statements or returns regarding depreciation of oil or gas wells 
 and mines. (T. D. 2375.) 
 
 Five per cent penalty and interest where taxpayer absent in foreign 
 country or traveling abroad, or absent from home or place of business In 
 military or other service of the country. (T. D. 2679.) 
 
 Part III. — General Administrative Provisions. 
 
 "State;" ''tTnlted States." 
 
 Sec. 15. That the word " State " or " United States " when used in 
 this title shall be construed to include any Territory, the District of 
 Columbia, Porto Rico, and the Philippine Islands, when such con- 
 struction is necessary to carry out its provisions. 
 
 Section 8167f BeTlsed Statntes, amended. 
 
 Sec. 16. That sections thirty-one hundred and sixty-seven, thirtv- 
 one hundred and ^xeSigiibm^ WiU^iSmfMn.Ar&di and seventy-three, 
 
816 
 
 APPENDIX, 
 
 and thirty-one hundred and seventy-six of the Revised Statutes of 
 the United States as amended are hereby amended so as to read as 
 follows : 
 
 " Sec. 3167. It shall be unlawful for any collector, deputy collec- 
 tor, agent, clerk, or other officer or employee of the United States to 
 divulge or to make known in any manner whatever not provided 
 by law to any person the operations, style of work, or apparatus of 
 any manufacturer or producer visited by him in the discharge of his 
 official duties, or the amount or source of income, profits, losses, 
 expenditures, or any particular thereof, set forth or disclosed in any 
 income return, or to permit any income return or copy thereof or any 
 book containing any abstract or particulars thereof to be seen or 
 examined by any person except as provided by law ; and it shall be 
 unlawful for any person to print or publish in any manner whatever 
 not provided by law any income return or any part thereof or source 
 of income, profits, losses, or expenditures appearing in any income 
 return; and any oflFense against the foregoing provision shall be a 
 misdemeanor and be punished by a fine not exceeding $1,000 or by 
 imprisonment not exceeding one year, or both, at the discretion of 
 the court ; and if the offender be an officer or employee of the United 
 States he shall be dismissed from office or discharged from employ- 
 ment. 
 
 Section S173, Bevtsed Statutes, amesded. 
 
 " Sec. 3172. Every collector shall, from time to time, cause his 
 deputies to proceed through every part of his district and inquire 
 after and concerning all persons therein who are liable to pay any 
 internal-revenue tax, and all persons owning or having the care and 
 management of any objects liable to pay any tax, and to make a list 
 of such persons and enumerate said objects. 
 
 Section 3173, EcTlsed Stiitutes, amended. 
 
 " Sec. 3173. It shall be the duty of any person, partnership, firm, 
 association, or corporation, made liable to any duty, special tax, or 
 other tax imposed by law, when not otherwise provided for, (1) in 
 case of a special tax, on or before the thirty-first day of July in each 
 year, (2) in case of income tax on or before the first day of March 
 in each year, or on or before the last day of the sixty-day period 
 next following the closing date of the fiscal year for which it makes a 
 return of its mcome, and (3) in other cases before the day on which 
 the taxes accrue, to make a list or return, verified by oath, to the 
 collector or a deputy collector of the district where located, of the 
 articles or objects, including the amount of annual income charged 
 with a duty or tax, the quantity of goods, wares, and merchandise, 
 made or sold and charged with a tax, the several rates and aggregate 
 amount, according to the forms and regulations to be prescribed by 
 the Commissioner of Internal Revenue, with the approval of the 
 Secretary of the Treasury, for which such person, partnership, firm, 
 association, or corporation is liable: Provided^ That if any person 
 liable to pay any duty or tax, or owning, possessing, or having the 
 care or management of property, goods, wares, and merchandise, 
 article or objects liable to pay any duty, tax, or license, shall fail to 
 make and exhibit a list or return required by law, but shall consent 
 to disclose the particvi^r|^|^gj ^^d^all^^e property, goods, wares, 
 
APPENDIX. 817 
 
 and merchandise, articles, and objects liable to pay any duty or tax, 
 or any business or occupation liable to pay any tax as aforesaid, 
 then, and in that case, it shall be the duty of the collector or deputy 
 collector to make such list or return, which, being distinctly read, 
 consented to, and signed and verified by oath by the person so own- 
 ing, possessing, or having the care and management as aforesaid, 
 may be received as the list of such person : Provided furtJver, That in 
 case no annual list or return has been rendered by such person to 
 the collector or deputy collector as required by law, and the person 
 shall be absent from his or her residence or place of business at the 
 time the collector or a deputy collector shall call for the annual list 
 or return, it shall be the duty of such collector or deputy collector 
 to leave at such place of residence or business, with some one of suit- 
 able age and discretion, if such be present, otherwise to deposit in 
 the nearest post office, a note or memorandum addressed to such 
 person, requiring him or her to render to such collector or deputy 
 collector the list or return required by law within ten days from the 
 date of such note or memorandum, verified by oath. And if any 
 person, on being notified or required as aforesaid, shall refuse or 
 neglect to render such list or return within the time required as afore- 
 said, or whenever any person who is required to deliver a monthly or 
 other return of objects subject to tax fails to do so at the time re- 
 quired, or delivers any return which, in the opinion of the collector, 
 is erroneous, false, or fraudulent, or contains any undervaluation or 
 understatement, or refuses to allow any regularly authorized Gov- 
 ernment officer to examine the books of such person, firm, or corpo- 
 ration, it shall be lawful for the collector to summon such person, 
 or any other person having possession, custody, or care of books of 
 account containing entries relating to the business of such person, or 
 any other person he may deem proper, to appear before him and 
 produce such books at a time and place named in the summons, and 
 to give testimony or answer interrogatories, under oath, respecting 
 any objects or income liable to tax or the returns thereof. The col- 
 lector may summon any person residing or found within the State 
 or Territory in which his district lies ; and when the person intended 
 to be summoned does not reside and can not be found within such 
 State or Territory, he may enter any collection district where such 
 person may be found and there make the examination herein author- 
 ized. And to this end he may there exercise all the authority which 
 he might lawfully exercise in the district for which he was commis- 
 sioned : Provided, That ' person,' as used in this section, shall be 
 construed to include any corporation, joint-stock company or asso- 
 ciation, or insurance company when such construction is necessary 
 to carry out its provisions. 
 
 Section 3176, Bcrised Statutes, amended. 
 
 " Sec. 3176. If any person, corporation, company, or association 
 fails to make and file a return or list at the time prescribed by law, 
 or makes, willfully or otherwise, a false or fraudulent return or list, 
 the collector or deputy collector shall make the return or list from his 
 own knowledge and from such information as he can obtain through 
 testimony or otherwise. Any return or list so made and subscribed 
 140184°— ''0 52 Digitized by Microsoft® 
 
818 
 
 AEEENDIX. 
 
 by a collector or deputy collector shall be prima facie good and suffi- 
 cient for all legal ptirposes. 
 
 " If the failure to fife a return or list is due to sickness or absence 
 the collector may allow such further time, not exceeding thirty days, 
 for making and filing the return or list as he deems proper. 
 
 " The Commissioner of Internal Revenue shall assess all taxes, other 
 than stamp taxes,, as to which returns or lists are so made by a col- 
 lector or deputy collector. In case of any failure to make and file a 
 return or list within the time prescribed by law or by the collector, 
 the Commissioner of Internal Revenue shall add to the tax fifty per 
 centum of its amount except that, when a return is voluntarily and 
 without notice from the collector filed after such time and it is shown 
 that the failure to file it was due to a reasonable cause and not to 
 willful neglect, no such addition shall be made to the tax. In case a 
 false or fraudulent return or list is willfully made, the Commissioner 
 of Internal Kevenue shall add to the tax one hundred per centum 
 of its amount. 
 
 " The amount so added to any tax shall be collected at the same 
 time and in the same manner and as part of the tax unfes the tax has 
 been paid before the discovery of the neglect, falsity, or fraud, in 
 which case the amount so added shall he collected in the same manner 
 as the tax." 
 
 Becelpts. 
 
 Sec. 17. That it shall be the duty of every eolleetor of internal 
 revenue, to whom any payment of any taxes is made under the pro- 
 visions of this title,, to give to the person making such payment a full 
 written or printed receipt, expressing the amount paid and the par- 
 ticular account for which such payment was made;: and whenever 
 sufih payment is made such collector shall, if required, give a sep- 
 arate receipt for each tax paid by any debtor, on account of pay- 
 ments made to or to be made by him to separate creditors in such 
 form that such debtor can conveniently produce the same separately 
 to his several creditors in satisfaction of their respective demands 
 to the amounts specified in such receipts ; and such receipts shaU be 
 sufficient evidence in favor of such debtor to jnstirOy him in with- 
 holding the amount therein expressed from his next payment to his 
 creditor ; but such creditor may, upon giving to his debtor a full 
 written receipt, acknowledging the payment to him of whatever sum 
 may be actually paid, and accepting the amount of tax paid as afore- 
 said (specifying the same) as a further satisfaction of the debt to 
 that amount, require the surrender to him oi anch collectoar's receipt. 
 
 Ponjiltles. 
 
 Seo. 18. That if any individual liable to make the return or pay 
 the tax aforesaid shall refuse or neglect to make such return at the 
 time or times hereinbefore specified in each year, he shall be liable to 
 a penalty of not less than $20^ nor more than $1,000. Any individual 
 or any officer of any corporation, joint-stock company or associa- 
 tion, or insurance company required by law to make, render, sign-, or 
 verity any return who- makes any failse or frauduleffit return or state- 
 ment with, intent to defeat or evade the assessment required by this 
 title to be made shall be guilty of a misdemeanor, and shall be fined 
 not exceeding $2,000 or be imprisoned not exceeding one year, or 
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APPENDIX. 819 
 
 both, in the discretion of the court, with the costs of prosecution: 
 Provided, That where any tax heretofore due and payable has been 
 duly paid by the taxpayer, it shall not be re-collected from any per- 
 son or corporation required to retain it at its source, nor shall any 
 penalty be imposed or collected in such cases from the taxpayer, or 
 such person or corporation whose duty it was to retain it, for fail- 
 ure to return or pay the same, unless such failure was fraudulent 
 and for the purpose of evading payment. 
 
 Amencled by section 1209, act of October 3, 1917 ; p. 898. 
 
 TcTllication ol returns. 
 
 Sec. 19. The collector or deputy collector shall require every 
 return to be verified by the oath of the party rendering it. If the 
 collector or deputy collector have reason to believe that the amount 
 of any income returned is understated, he shall give due notice to the 
 person making the return to show cause why the amount of the re- 
 turn should not be increased, and upon proof of the amount under- 
 stated may increase the same accordingly. Such person may furnish 
 sworn testimony to prove any relevant facts, and, if dissatisfied with 
 the decision of the collector, may appeal to the Commissioner of In- 
 ternal Eevenue for his decision under such rules of procedure as may 
 be prescribed by regulation. 
 
 CompcUlng Attendance of witnesses, etc. 
 
 Sec. 20. That jurisdiction is hereby conferred upon the district 
 courts of the United States for the district within which any person 
 summoned under this title to aj^pear to testify or to produce books 
 shall reside, to compel such attendance, production of books, and 
 testimony, by appropriate process. 
 
 statistics. 
 
 Sec. 21. That the preparation and publication of statistics reason- 
 ably available with respect to the operation of the income tax law 
 and containing classifications of taxpayers and of income, the 
 amounts allowed as deductions and exemptions, and any other facts 
 deemed pertinent and valuable, shall be made annually by the Com- 
 missioner of Internal Eevenue with the ajjproval of the Secretary 
 of the Treasury. 
 
 Application of earlier laws, etc. 
 
 Sec. 22. That all administrative, special, and general provisions of 
 law, including the laws in relation to the assessment, remission, col- 
 lection, and refund of internal-revenue taxes not heretofore spe- 
 cifically repealed and not inconsistent with the provisions of this 
 title, are hereby extended and made applicable to all the provisions of 
 this title and to the tax herein imposed. 
 
 Porto Blco and Philippine Islands. 
 
 Sec. 23. That the provisions of this title shall extend to Porto Eico 
 and the Philippine Islands : Provided, That the administration of the 
 law and the collection of the taxes imposed in Porto Eico and the Phil- 
 
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820 APPENDIX. 
 
 ippine Islands shall be by the appropriate internal-revenue officers of 
 those governments, and all revenues collected in Porto Rico and the 
 Philippine Islands thereunder shall accrue intact to the general Gov- 
 ernments thereof, respectively : Provided fwrther, That the jurisdic- 
 tion in this title conferred upon the district courts of the United 
 States shall, so far as the Philippine Islands are concerned, be vested 
 in the courts of the first instance of said islands : Atid provided fur- 
 tJier, That nothing in this title shall be held to exclude from the com- 
 putation of the net income the compensation paid any official by the 
 governments of the District of Columbia, Porto Rico, and the Philip- 
 pine Islands, or the political subdivisions thereof. 
 
 Bepcal of Section II, act October 3, 1913. 
 
 Sec. 24. That Section II of the Act approved October third, nine- 
 teen hundred and thirteen, entitled "An Act to reduce tariff duties 
 and to provide revenue for the Government, and for other purposes," 
 is hereby repealed, except as herein otherwise provided, and except 
 that it shall remain in force for the assessment and collection of all 
 taxes which have accrued thereunder, and for the imposition and col- 
 lection of all penalties or forfeitures wliich have accrued or may 
 accrue in relation to any of such taxes, and except that the unex- 
 pended balance of any appropriation heretofore made and now avail- 
 'able for the administration of such section or any provision thereof 
 shall be available for the administration of this title or the corre- 
 sponding provision thereof. 
 
 Income under act of October 3, 1918. 
 
 Seo. 25. That income on which has been assessed the tax imposed 
 by Section II of the Act entitled "An Act to reduce tariff duties and 
 to provide revenue for the Government, and for other purposes," 
 approved October third, nineteen hundred and thirteen, shall not be 
 considered as income within the meaning of this title : Provided, That 
 this section shall not conflict with that portion of section ten, of this 
 title, under which a taxpayer has fixed its own fiscal year. 
 
 New section. 
 
 New section, 26, added by section 402 of the Act of March 3, 1917 
 (39 Stat., 1000, 1003), such section being amended by section 1210 of 
 the Act of October 3, 1917 (40 Stat., 300, 336) ; pages 848 and 899, post. 
 New sections, li7 to 32, were added by section 1211, Act of October 3, 
 1917 ; page 899. 
 
 TITLE II.— ESTATE TAX.^ 
 
 Definitions. 
 
 Sec. 200. That when used in this title — 
 
 The term " person " includes partnerships, corporations, and asso- 
 ciations ; 
 
 The term " United States " means only the States, the Territories 
 of Alaska and Hawaii, and the District of Columbia ; 
 
 The term " executor " means the executor or administrator of the 
 decedent, or, if there is no executor or administrator, any person 
 who takes possession of any property of the decedent; and 
 
 Dm 
 
APPENDIX. 821 
 
 The term " collector " means the collector of internal revenue of 
 the district in which was the domicile of the decedent at the time of 
 his death, or, if there was no such domicile in the United States, 
 then the collector of the district in which is situated the part of the 
 gross estate of the decedent in the United States, or, if such part of 
 ttie gross estate is situated in more than one district, then the col- 
 lector of internal revenue at Baltimore, Maryland. 
 
 Wherever circumstances are sucli that the Government could not 
 proceed against administrator or executor for satisfaction of require- 
 ments of taxing act there shall be no failure, because of inability to 
 hold others in possession responsible, to collect whole tax due. (T. D. 
 2454.) 
 
 ImposIUon of tax; rates. 
 
 Sec. 201. That a tax (hereinafter in this title referred to as the 
 tax), equal to the following percentages of the value of the net 
 estate, to be determined as provided in section two hundred and three, 
 is hereby imposed upon the transfer of the net estate of every dece- 
 dent dying after the passage of this Act, whether a resident or non- 
 resident of the United States: 
 
 One per centum of the amount of such net estate not in excess of 
 $50,000; 
 
 Two per centum of the amount by which such net estate exceeds 
 $50,000 and does not exceed $150,000; 
 
 Three per centum of the amount by which such net estate exceeds 
 $150,000 and does not exceed $250,000 ; 
 
 Four per centum of the amount by which such net estate exceeds 
 $2?0,000 and does not exceed $450,000; 
 
 Five per centum of the amount by which such net estate exceeds 
 $450,000 and does not exceed $1,000,000; 
 
 Six per centum of the amount by which sucli net estate exceeds 
 $1,000,000 and does not exceed $2,000,000; 
 
 Seven per centum of the amount by which such net estate exceeds 
 $2,000,000 and does not exceed $3,000,000; 
 
 Eight per centum of the amount by which such net estate exceeds 
 $3,000,000 and does not exceed $4,000,000 ;_ 
 
 Nine per centum of the amount by which such net estate exceeds 
 $4,000,000 and does not exceed $5,000,000; and 
 
 Ten per centum of the amount by which such net estate exceeds 
 $5,000,000. 
 
 Amended by section 300, act of March 3, 1917 ; p. 847. 
 
 In view of the history of the legislation, collateral inheritance taxes 
 imposed by the State of Pennsylvania under collateral inheritance tax 
 act, sections 1, 3, 5, 9, and 11, are to be treated as paid by the estate, 
 and may be deducted as expenses of administration, or claims against 
 the estate, or other charges against the estate allowed by the laws of 
 the State, within this act. (Northern Trust Co. v. Lederer, 257 Fed., 
 
 812.) 
 
 Determination of ralue of gross estate. 
 
 Sec. 202. That the value of the gross estate of the decedent shall 
 be determined by including the value at the time of his death of all 
 property, real or personal, tangible or intangible, wherever situated : 
 
 (a) To the extent of the interest therein of the decedent at the time 
 of his death which after his death is subject to the payment of the 
 charges against his estate and the expenses of its administration and 
 is subject to distribut^^,^^g^<^.^;g^e^s^e. 
 
822 
 
 APBEHDIX. 
 
 (b). Ta th& extent of any.interest therein of whicli the decedent has 
 at any time made ai transfer, or with respect to which he. has created 
 a trust, in contemplation of or intended to take effect in possession or 
 enjoyment at or after his death, except In case of a bona fide sale for 
 a fair_ consideration in money or money's woEth. Any transfer of a 
 material part of his property in the nature of a final (^sposition or 
 distribution thereof, made by the decedent within two years prior to 
 his death without such a consideration, shall, unless shown to the 
 ccoitrary, be deemed ta have been made in contemplation of death 
 within the rmeaning of this title; and 
 
 (c) To the extent of the interest therein held jointly or as tenants 
 in the entirety by the decedent and any other person, or deposited in 
 banks or other institutions in their joint names and payable to either 
 or_ the survivGr, except such part thereof a;g may be shown to have 
 originally belonged to sneh other person and never to have belonged 
 to the decedent. 
 
 For the purpose of this title stock in a domestic eorporatien owned 
 and held hj a nonresident decedent shall be deemed property within 
 the United States, and any property of which the dfecedent has made 
 a transfer or with respect tO' which he has created a trust, within the 
 rneaning of subdivision (b) of this section, shall be deemed to be 
 situated in the United States, if so situated rither at the time of the 
 transfer or the creation of the trust, or at the time of the deeedent^ 
 death. 
 
 Income earned after decedent's death and' appreciation m values during 
 administration are not tO' be' returned as portion of gross estate. (T. D. 
 2406.) 
 
 Property passing tmder general power ef appointment is taxable as a 
 portion of the gross estate of. the decedent appointee. (T. D. 2i77.)- 
 
 Computation of dividends, upon stocfc and interest upon ftondS owned By 
 decedent whysse estate fs taxable; (T. D. 2:48?. )• 
 
 Keal estate located outsidle of the United Statea belonging to a decedent 
 resident ■within the United States should not he iacluded in. the gross 
 estate of such decedent. (,T. D. 2733. ) 
 
 Transfers, of property made prior to September 8, 1916, in contemplation 
 of death, are taxable where the transferer died after September 8-; 1916. 
 (T. D. 2385.) 
 
 Valuffi' ef United States bonds can not be excluded from gross or- net 
 estate in determining tax due. (T. D. 2440.)- 
 
 Shares, of stock in domestic corporations belonging to. nonresident de- 
 cedent and deposited with Britsh treasury, for which certificates of de- 
 posit were issued, are subject to tax on death of nonresident if certificates; 
 have not beeai previously transferred. ((T.. D. 2772.). 
 
 Methods-of determining share in' community property or property owned 
 jointly or in entirety ; to be returned as a portion of tlie gross estate of a 
 decedent tenant.. (T> D. 2450..) 
 
 Househokl efEect* and like personalty used by husband and wlte in the 
 marriage relation are presumed to he the property of the husband!, and, 
 in the absence of sufficient evidence to rebut this presumption, must be 
 returned as a portion of his gross estate. (T. D. 2529.) 
 
 Bonds of domestic eorporatiioiiis owned by nonresident decedents, such 
 bonds being physically situate outside of the United States, are not 
 returnable as a portion of the- gross estate of sal<I decedfent.. (T., B. 2590.) 
 
 Beteimlnatlon o{ Tslno of net estate. 
 
 Sec. 203. That foT the purpose of the tax the value of the net 
 
 estate shall be deteirmined— 
 
 (a)i In the case ©f a residsent, by deduscting Jrom the- value of the 
 
 gross estate — 
 
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APPENDIX. 823 
 
 (1) Such amounts for funeral expenses, administration expenses, 
 claims against the estate, unpaid mortgages, losses incurred during 
 the settlement of the estate arising from fires, storms, shipwreck, or 
 other casualty, and from theft, when such losses are not compensated 
 for by insurance or otherwise, support during the settlement of the 
 estate of those dependent upon the decedent, and such other charges 
 against the estate, as are allowed by the laws of the jurisdiction, 
 whether within or without the United States, under which the estate 
 is being administered ; and 
 
 (2) An exemption of $50,000; 
 
 (b) In the case of a nonresident, by deducting from the value of 
 that part of his gross estate which at the time of his death is situated 
 in the United States that proportion of the deductions specified in 
 paragraph (1) of subdivision (a) of this section which the value of 
 such part bears to the value of his entire gross estate, wherever 
 situated. But no deductions shall be allowed in the case of a non- 
 resident iinless the executor includes in the return required to be 
 filed under section two hundred and five the value at the time of his 
 death of that part of the gross estate of the nonresident not situated 
 in the United States. 
 
 The deductions from the gross estate provWed in section 203, paragraph 
 1, are limited to amounts allowed under the laws of the local jurisdic- 
 tion. (T. T>. 2453.) . 
 
 State Inheritance taxes are deductible. (T. D. 2524.) But see T. D. 
 2976. 
 
 Interpretation of the provision relating to the deductibility of amounts 
 expended for support of dependents. (T. D. 2531.) 
 
 Table to be used in determining the value of one's life interest in an 
 estate vested In another. (T. D. 2626.) 
 
 Conditions under which taxes on real and personal property and on 
 income are deductible in computing net estate stated. (T. D. 2771.) 
 
 In view of the hi.story of the legislation, collateral inheritance taxes 
 imposed by the State of Pennsylvania under collateral-inheritance tax 
 act, sections 1, 3, 5, 9, and 11, are to be treated as paid by the estate and 
 may be deducted ms expenses of administration, or claims against the 
 estate, or other charges against the estate allowed by the laws of the 
 State within this ac-t. (Northern Trust Co. v. Lederer, 257 Fed., 812.) 
 Time of pajment of tax. 
 
 Sec. 204. That the tax shall be due one year after the decedent's 
 death. If the tax is paid before it is due a discount at the rate of 
 five per centum per annum, calculated from the time payment is 
 made to the date when the tax is due, shall be deducted. If the tax 
 is not paid within ninety days after it is due interest at the rate of 
 ten per centum per annum from the time of the decedent's death 
 shall be added as part of the tax, unless because of claims against 
 the estate, necessary litigation, or other unavoidable delay the col- 
 lector finds that the tax can not be determined, in which case the 
 interest shall be at the rate of six per centum per amium from the 
 time of the decedent's death until the cause of such delay is removed, 
 and thereafter at the rate of ten per centum per annum. Litigation 
 to defeat the payment of the tax shall not be deemed necessary liti- 
 gation. 
 
 Instructions, with tables, relating to the computation of the 5 per cent 
 
 discount to be allowed on estate tax when paid before one year after 
 
 the death of decedent. (T. D. 2497.) 
 
 Conditi(jns under which discount may be allowed for advance payment 
 
824 APPENDIX. 
 
 Exeontor's dntles; retning. 
 
 SEa 205. That the executor, within thirty days after qualifying 
 as such, or after coming into possession of any property of the dece- 
 dent, whichever event first occurs, shall give written notice thereof 
 to the collector. The executor, shall also, at such times and in such 
 manner as may be required by the regulations made under this title, 
 file with the collector a return under oath in duplicate, setting forth 
 (a) the value of the gross estate of the decedent at the time of his 
 death, or, in case of a nonresident, of that part of his gross estate 
 situated in the United States; (b) the deductions allowed under sec- 
 tion two hundred and three; (c) the value of the net estate of the 
 decedent as defined in section two hundred and three; and (d) the 
 tax paid or payable thereon ; or such part of such information as may 
 at the time be ascertainable and such supplemental data as may 
 be necessary to establish the correct tax. 
 
 Eetum shall be made in all cases of estates subject to the tax or 
 where the gross estate at the death of the decedent exceeds $60,000, 
 and in the case of the estate of every nonresident any part of whose 
 gross estate is situated in the United States. If the executor is 
 unable to make a complete return as to any part of the gross estate 
 of the decedent, he sliall include in his return a description of such 
 part and the name of every person holding a legal or beneficial inter- 
 est therein, and upon notice from the collector such person shall in 
 like manner make a return as to such part of the gross estate. The 
 Commissioner of Internal Revenue shall make all assessments of the 
 tax under the authority of existing administrative special and gen- 
 eral provisions of law relating to the assessment and collection of 
 taxes. 
 
 Estates of nonresidents ; payment of tax and transfer of securities. 
 (T. D. 2708.) 
 
 Duties of corporations and their transfer agents, registers of bonds, 
 and paying agents. (T. D. 2490.) 
 
 Beneficiaries taking property of decedent prior to appointment of 
 executor or administrator, where the estate would be subject to taxa- 
 tion, required to file 30-day notice and return. (T. D. 2372.) 
 
 Conditions under whicli tentative returns may be filed and advance 
 tax payment accepted. (T. D. 2415.) 
 
 Thirty-day notice, return, and tax payment required of representatives 
 in this country of nonresidents where no executor acts within the re- 
 quired time ; also a similar requirement in the case if fiduciaries holding 
 property of a resident where no executor acts. (T. D. 2421.) 
 
 The value of United States bonds can not be excluded from the gross 
 or net estate in determining estate tax due. (T. D. 2449.) 
 
 Duties of heirs, donees, trustees, fiduciaries, transfer agents, and 
 others having or coming into possession of property of a decedent whose 
 estate is liable for estate tax. (T. D. 2454.) 
 
 Condition under which time for filing estate tax returns may be ex- 
 tended beyond 90 days from the day a year after the death of the de- 
 cedent. (T. D. 2637.) 
 
 Instructions for preparation of Form 706. (T. D. 2513.) 
 Returns on Form 706 for the estates of nonresident decedents to be 
 forwarded direct to the Commissioner of Internal Revenue for trans- 
 mittal to the collector. (T. D. 2691.) 
 
 Betiirn Iby collector. 
 
 Sec. 206. That if no administration is granted upon the estate of a 
 decedent, or if no return is filed as provided in section two hundred 
 and five, or if a retuQig«*HBtditaj!! M;(feds©/it® incorrect statement of a 
 
APPENDIX. 825 
 
 material fact, the collector or deputy collector shall make a return 
 and the Commissioner of Internal Revenue shall assess the tax 
 thereon. 
 
 To whom payment made; amount to lie paid; Interest; duplicate receipts. 
 
 Sec. 207. That the executor shall pay the tax to the collector or 
 deputy collector. If for any reason the amount of the tax can not 
 be determined, the payment of a sum of money sufficient, in the 
 opinion of the collector, to discharge the tax shall be deemed payment 
 in full of the tax, except as in this section otherwise provided. If the 
 amount so paid exceeds the amount of the tax as finally determined, 
 the Commissioner of Internal Revenue shall refund such excess to 
 the executor. If the amount of the tax as finally determined exceeds 
 the amount so paid the commissioner shall notify the executor of the 
 amount of such excess. From the time of such notification to the 
 time of the final payment of such excess part of the tax, interest shall 
 be added thereto at the rate of ten per centum per annum, and the 
 amount of such excess shall be a lien upon the entire gross estate, 
 except such part thereof as may have been sold to a bona fide pur- 
 chaser for a fair consideration in money or money's worth. 
 
 The collector shall grant to the person paying the tax duplicate 
 receipts, either of which shall be sufficient evidence of such payment, 
 and shall entitle the executor to be credited and allowed the amount 
 thereof by any court having jurisdiction to audit or settle his 
 accounts. 
 
 United States bonds bearing interest at a higher rate than 4 per cent 
 to be accepted at par and accrued interest in payment of estate tas. 
 (T. D. 2705.) 
 
 Collector not required to exercise discretion as to what amount will 
 satisfy tax until due date thereof; regulation governing payments where 
 amount of tax can not be determined. (T. D. 2756.) 
 
 Time of notilication to executor of amount of " excess " estate tax due 
 is date on which notice thereof is received by executor. (T. D. 2770.) 
 
 Bnlijectlou of property. 
 
 Sec. 208. That if the tax herein imposed is not paid within sixty 
 days after it is due, the collector shall, unless there is reasonable cause 
 for further delay, commence appropriate proceedings in any court of 
 the United States, in the name of the United States, to subject the 
 property of the decedent to be sold under the judgment or decree of 
 the court. From the proceeds of such sale the amount of the tax, 
 together with the costs and expenses of every description to be 
 allowed by the court, shall be first paid, and the balance shall be 
 deposited according to the order of the court, to be paid under its 
 direction to the person entitled thereto. If the tax or any part 
 thereof is paid by, or collected out of that part of the estate passing 
 to or in the possession of, any person other than the executor in his 
 capacity as such, such person shall be entitled to reimbursement out 
 cf any part of the estate still undistributed or by a just and equitable 
 contribution by the persons whose interest in the estate of the de- 
 cedent would have been reduced if the tax had been paid before the 
 distribution of the estate or whose interest is subject to equal or prior 
 liability for the payment of taxes, debts, or other charges against the 
 estate, it being the pii©g9!i^etM>dMJeHd)S®f?®iis title that so far as is 
 
826 appendix!. 
 
 IDi-acticable and unless otherwise directed by the will of the decedent 
 the tax shall be paid out of the estate before its distribution. 
 
 Lien of tax; liability of transferee or trustee. 
 
 Sec. 209. That unless the tax is sooner paid in full, it shall be a 
 lien for ten years upon the gross estate of the decedent, except that 
 such part of the gross estate as is used for the payment of charges 
 against the estate and expenses of its administration, allowed by any 
 court having jurisdiction thereof, shall be divested of such lien. 
 
 If the decedent makes a transfer of, or creates a trust with respect 
 to, any property in contemplation of or intended to take effect in 
 possession or enjoyment at or after his death (except in the case of 
 a bona fide sale for a fair consideration in money or money's worth) 
 and if the tax in respect thereto is not paid when due, the transferee 
 or trustee shall be personally liable for such tax, and such property, 
 to the extent of the decedent's interest therein at the time of such 
 transfer, shall be subject to a like lien equal to the amount of such 
 tax. Any part of such property sold by such transferee or trustee 
 to a bona fide purchaser for a fair consideration in money or money's 
 worth shall be divested of the lien and a like lien shall then attach 
 to all the property of such transferee or trustee, except any part 
 sold to a bona fide purchaser for a fair consideration in money or 
 money's worth. 
 
 Penalties. 
 
 Sec. 210. That whoever knowingly makes any false statement in 
 any notice or return required to be filed by this title shall be liable to 
 a penalty of not exceeding $5,000, or imprisonment not exceeding one 
 year, or both, in the discretion of the court. 
 
 Whoever fails to comply with any duty imposed upon him by sec- 
 tion two hundred and five, or, ha\-ing in his possession or control 
 any record, file, or paper, containing or supposed to contain any 
 information concerning the estate of the decedent, fails to exhibit the 
 same upon request to the Commissioner of Internal Revenue or any 
 collector or law officer of the United States, or his duly authorized 
 deputy or agent, who desires to examine the same in the perform- 
 ance of his duties under this title, shall be liable to a penalty of not 
 exceeding $500, to be recovered, with costs of suit, in a civil action 
 in the name of the United States. 
 
 Api^lkatlon of earlier laws. 
 
 Sec. 211. That all administrative, special, and general provisions 
 of law, including the laws in relation to the assessment and collection 
 of taxes, not heretofore specifically repealed are hereby made to 
 apply to this title so far as applicable and not inconsistent with its 
 provisions. 
 
 Regnlattons. 
 
 Sec. 212. That the Commissioner of Internal Revenue, with the 
 approval of the Secretary of the Treasury, shall make such regula- 
 tions, and prescribe and require the use of such books and forms 
 as he may deem necessary to carry out the provisions of this title. 
 Supplemental regulations. (T. D. 2454.) 
 
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AcccfitiiKCC of Libcit; bonds In paymojit of tax. 
 
 Sec. 6 [Aef ef Afv^iT j^, 1918 {Jfi Stat., 50£, SOS), amhending enet 
 of September 2k, 1917 {iO Stat._ ^88.).] That any bonds of th« United] 
 States bearing- interest at a higher rate than four per eentum per 
 annum (whether issued: under section one of this Act or upon eon- 
 ^-ersion of bonds issued und?er this Act or under said Act approved 
 April twenty-fourth, nineteen hundred and seventeen), which haAi^e 
 been owned by any person continuously for at least six months prior 
 to the date of his death, and which upon such date constitute part of 
 his estate, shall, under rules and regulations prescribed by the- Sec- 
 retary of the Treasury,, be recei-vable by tha United Stales at par 
 and accrued interest in payment of any estat& or inberitance taxes 
 iraposgd by thafr United Staites^ under or by virtue of aaiy present or 
 fu^ttre law- w^mn such estate or the inheritance thereof. 
 
 TiTHited. Sftates bond* hearing interest at a higher rate than. 4 per cent 
 tO' be accepted at par and accriiad interest in payment o£ estate tax. 
 (T;. D. 2.705..) 
 
 Eeeeipt a£ 44 per cent Victory notes- in payment of lass. (T. Da. 
 296^. 2905.) 
 
 Beceipt of Liberty bonds in j)aynient of estate taxes. (T.. Ds. 2898, 
 28fi:a,- 2862. > 
 
 TITLE HL^MmOTION^ MANUFACTUEEE'S TAX.^ 
 
 Definitions. 
 
 Sec. 300: That -wiien used m this title — 
 
 The term " person " includes partnerships, corporations, amd asso- 
 ciations;: 
 
 The term " texEubie yeai* " means the twelve months ending Decem- 
 ber thirty-first. The first taxable year shall be the twelve months 
 ending Decenaber thirty-first, nineteen hundred and sixteen ; and 
 
 The term "" United States " means only the States, the Territories 
 of Alaska and Hawaii, and the Distriict of Columbra. 
 
 Imposition of ta:s ;. rate ;. limitation. 
 
 Sec. 301. (1) That every person manufacturing (a) gunpowder 
 and other esplosiv^es,, excepting blasting powder and dynamite used 
 for- industrial purposes;- (b) cartridges, loadsd aaid unloaded, caps 
 or primers, exclusive of those used for industrial purposes; (c) pro- 
 jectiles, shells, or torpedoes of any kind, including shrapnet,. loaded 
 or unloaded^ or fuses,, or complete rounds of ammunition; (A)' fire- 
 arms of any kmd. and appendages, including small arms, cannon, 
 machine guns, rifles, and bayonets;' (e) electric motor boats, sub- 
 marine' or submersibfe vessels or boa-ts ;- dr (f ) any part of any of the 
 articles menifcroned in (b) , (c) , (di) , or (e) ;- shall pay for each taxable 
 year, in- addftion to the income tax imposed by Title I, an excise 
 tax of twelve and one-half per centum upon the entire net profits 
 actually received or accrued for said year from the sate or dispo- 
 sition of such articles manufactured; within the United States: 
 Frvvidle^, Hcymever, That no person shall pay sucLtax upon net profits 
 received during the year nineteen hundred and sixteen derived f ronx 
 
 1 See Regulations No. 39 (T. D. 23841 . 
 
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828 appendix!. 
 
 the sale and delivery of the articles enumerated in this section under 
 ; contracts executed and fully performed by such person prior to 
 1 January first, nineteen hundred and sixteen. 
 
 (2) This section shall cease to be of effect at the end of one year 
 
 after the termination of the present European war, which shall be 
 
 evidenced by the proclamation of the President of the United States 
 
 declaj^ing such war to have ended. 
 
 Ajnended by section 214, act of October 3, 1917. See post, page 861. 
 
 Purpose of section ; " any part " defined ; manufacture of shells by 
 contractors and subcontractors. (T. D. 2875.) 
 
 "Appendages," as used in paragraph (d), Includes those adjuncts or 
 accessories which may be attached to and become In effect parts of fire- 
 arms. (T. D. 2714.) 
 
 Net profits received in 1916 or subsequent years or contracts entered 
 Into and not fully performed prior to January 1, 1916, required to be 
 returned as income of year in which received. (T. D. 2458.) 
 
 Congress did not intend, by this section, to tax the manufacturer of 
 articles or parts thereof, which, while susceptible of warlike use, were, in 
 fact, not so used, but remained in the channels of normal commerce 
 and use. (Carbon Steel Co. v. Lewellyn, Worth Bros. Co. v. Lederer, 
 and Lewellyn v. Forged Steel "Wheel Co., 258 Fed., 533; T. D. 2875.) 
 
 The words "any part" do not mean "any completed part." (Id.) 
 
 Steel company which manufactured steel of characteristics necessary 
 to manufacture of shells, and retained ownership through all subsequent 
 steps by subcontractors, delivering completed shells to foreign govern- 
 ment, held to be a person manufacturing shells, within meaning of this 
 section. (Id.) 
 
 Subcontractor which selected material required in shells, made steel 
 which constituted the shells, performing six several steps constituting 
 about 40 per cent of the cost of shells, held to be person manufacturing 
 shells, within meaning of this section. (Id.) 
 
 Subcontractor, manufacturing and furnishing to contractor for shells 
 rough steel shell forgings, making or buying in the market the steel 
 required, of common commercial type known as rounds, which rounds 
 . it broke into lengths and put through forging process, the output being 
 a hollow-steel body or shell weighing about 170 pounds, held to be person 
 manufacturing shells, within meaning of this section, though contractor, 
 to make shell form suitable for use, was required to dress and machine 
 it down to 77 pounds by means of some twenty-seven distinct processes. 
 (Id.) 
 
 Compntstton of net proflti. 
 
 Sec. 302. That in computing net profits under the provisions of 
 this title, for the purpose of the tax there shall be allowed as deduc- 
 tions from the gross amount received or accrued for the taxable year 
 from the sale or disposition of such articles manufactured within the 
 United States, the following items: . 
 
 The cost of raw materials entering into the manufacture; 
 Running expenses, including rentals, cost of repairs and main- 
 tenance, heat, power, insurance, management, salaries, and wages; 
 
 (c) Interest paid within the taxable year on debts or loans con- 
 tracted to meet the needs of the business, and the proceeds of which 
 have been actually used to meet such needs ; 
 
 (d) Taxes of all kinds paid during the taxable year with respect to 
 the business or property relating to the manufacture ; 
 
 (e) Losses actually sustained within the taxable year in connection 
 with the business of manufacturing such articles, including losses 
 from fire, flood, storm, or other casualty, and not compensated for by 
 insurance or otherwise; and 
 
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 [^ 
 
APPENDIX. 829 
 
 (f ) A reasonable allowance according to the conditions peculiar to 
 each concern, for amortization of the values of buildings and ma- 
 chinery, account being taken of the exceptional depreciation of special 
 plants. 
 
 War excess profits tax not deductible in ascertaining net munitions 
 Income for purpose of measuring tax. (T. D. 2621.) 
 
 GroB8 amount deemed to bo Ttbat. 
 
 Sec. 303. If any person manufactures any article specified in sec- 
 tion three hundred and one and, during any taxable year or part 
 thereof, whether under any agreement, arrangement, or understand- 
 ing, or otherwise, sells or disposes of any such article at less than the 
 fair market price obtainable therefor, either (a) in such manner as 
 directly or indirectly to benefit such person or any person directly or 
 indirectly interested in the business of such person, or (b) with in- 
 tent to cause such benefit, the gross amount received or accrued for 
 such year or part thereof from the sale or disposition of such article 
 shall be taken to be the amount which would have been received or 
 accrued from the sale or disposition of such article if sold at the fair 
 market price. 
 
 Betnms. 
 
 Sec. 304. On or before the first day of March, nineteen hundred 
 and seventeen, and the first day of March in each year thereafter, a 
 true and accurate return under oath shall be made by each person 
 manufacturing articles specified in section three hundred and one to 
 the collector of internal revenue for the district in which such person 
 has his principal office or place of business, in such form as the Com- 
 missioner of Internal Revenue, with the approval of the Secretary 
 of the Treasury, shall prescribe, setting forth specifically the gross 
 amount of income received or accrued from the sale or disposition of 
 the articles specified in section three hundred and one, and from the 
 total thereof deducting the aggregate items of allowance authorized 
 in section three hundred and two, and such other particulars as to 
 the gross receipts and items of allowance as the Commissioner of 
 Internal Revenue, with the approval of the Secretary of the Treasury, 
 may require. 
 
 Transmission of returns. 
 
 Sec 305. All such returns shall be transmitted forthwith by the 
 collector to the Commissioner of Internal Revenue, who shall, as 
 soon as practicable, assess the tax found due and notify the person 
 making such return of the amount of tax for which such person is 
 liable, and such person shall pay the tax to the collector on or before 
 thirty days from the date of such notice. 
 
 BeTien by Commissioner. 
 
 Sec. 306. If the Secretary of the Treasury or the Commissioner of 
 Internal Revenue shall have reason to be dissatisfied with the return 
 as made, or if no return is made, the Commissioner is authorized to 
 make an investigation and to determine the amount of net profits 
 and may assess the proper tax accordingly. He shall notify the 
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830 APPENDIX. 
 
 person making, or who should have made, such return and shall 
 proceed to collect the tax in the same manner as provided in this title, 
 unless the person so notified shall, file a written request for a hearing 
 with the Commissioner within thirty days after the date of such 
 notice ; and on such hearing the burden of establishing to the satis- 
 faction of the Commissioner that the gross amount received or accrued 
 or the amount of net profits, as determined by the Commissioner, is 
 incorrect, shall devolve upon such. person. 
 
 rcrsons ou ivliom tux assessed. 
 
 Sec. 307. The tax may be assessed on any person for the time 
 being owning or carrying on the business, or on any person acting 
 as agent for that person in carrying on the business, or where a busi- 
 ness has ceased, on the person who owned or carried on the business, 
 or acted as agent in carrying on the business immediately before 
 the time at whzch the business ceased. 
 
 Exuminalion of books, etc. 
 
 Sec. 308. For the purpose of carrying out the provisions of this 
 title the Commissioner of Internal Revenue is authorized, person- 
 ally or by his agent, to examine the books, accounts, and records of 
 any person subject to this tax. 
 
 Information not to 1}c commiuiicatcd. 
 
 Sec. 309. No person employed by the United States shall com- 
 municate, or allow to be communicated to any person not legally 
 entitled thereto, any information obtained under the provisions of 
 this title, or allow any such person to inspect or have access to any 
 return furnished tmder the provisions of this title. 
 
 Penalties. 
 
 Sec. 310. Whoever violates any of the provisions of this title or 
 the regulations made thereunder, or who knowingly makes false 
 statements, in any return, or refuses to give such information as may 
 be called for, is guilty of a misdemeanor, and upon conviction shall, 
 in addition to paying any tax to which he is liable, be fined not more 
 than $10,000, or imprisoned not exceeding one year, or both, in the 
 discretion of the court. 
 
 iLppllcatlou of oaillci' laws. 
 
 Sec. 311. All administrative, special, and general provisions of 
 law, relating to the assessment, and collection of taxes not specifically 
 repealed, are hereby made to apply to this title so far as applicable 
 and not inconsistent with its provisions. 
 
 Itegulntlons. 
 
 Sec. 312. The Commissioner of Internal Revenue, with the ap- 
 proval of the Secretary of the Treasury, shall make all necessary 
 regulations for carrying out the provisions of this title, and may 
 require any person sub]ect to such provisions to furnish him with 
 further information whenever in his judgment the same is necessary 
 to collect the tax provided for herein. 
 
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APPEETDIX:. 831 
 
 TITLE IV.— MISCELLANEOUS TAXES. 
 
 Fermented Uqnors. 
 
 Sec. 400. That there shall be levied, collected, and paid a tax of 
 $1.50 on all beer, lager beer, ale, porter, and other similar fermented 
 liquor, brewed or manufactured and sold, or stored in warehouse, or 
 removed for consumption or sale, within the United States, by what- 
 ever name such liquors may be called, for every barrel containing not 
 more than thirty-one gallons; and at a like rate for any other quan- 
 tity or for the fractional parts of a barrel authorised and defined by 
 law. And section thirty-three hundred and thirty-nine of the Re- 
 vised Statutes is hereby amended accordingly. 
 
 Natural wines. 
 
 Sec. 401. That natural wine Avitliin the meaning of this Act shall 
 he deemed to be the product made from the normal alcoholic ferm.ea- 
 tation of the juice of sound,, ripe grapes, without addition or abstrac- 
 tion, except such as may occur in the usual cellar treatment of clari- 
 fying and aging: Provided^ however, That the product made from 
 the juice of sound, ripe grapes by complete fermentation of the must 
 under proper cellar treatment and corrected by the addition (under 
 the supervision of a ganger or storekeeper-ganger in the capacity of 
 ganger) of a solution of water and pure cane, beet, or dextrose sugar 
 (containing, respectively, not less than ninety-five per centum of 
 actual sugar, calculated on a dry basis) to the must or to the wine, to 
 correct natural deficiencies, when such addition shall not increase the 
 volunae of the resultant product more than thirty-five per centum, 
 and the resultant product does not contain less than five parts per 
 thousand of acid before fermentation and not more than thirteen per 
 centum of alcohol after complete fermentation, shall be deemed to be 
 wine within the meaning of this Act, and may be labeled, transported, 
 and sold as " wine," qualified by the name of the locality where pro- 
 duced, a;nd may be further qualified by the name of its own particular 
 type or variety : And provided fwrther. That wine as defined in this 
 section may be sweetened widi cane sngar or beet sugar or pure eon^ 
 densed grape must and fortified under the provisions of this Act, and 
 wines so sweetened or fortified shall be considered sweet wine within 
 the meaning of tliis Act. 
 
 SHU wines. 
 
 Sec. 402. (a) That upon all still wines, including vermuth, and 
 upon all artificial or imitation wines or compound sold as wine here- 
 after produced in or imported into the United States, and upon aU 
 like wines which on the date this section talces effect shall be in the 
 possession or under the control of the producer, holder, dealer, or 
 compounder there shall be levied, collected, and paid taxes at rates 
 as follows: 
 
 On wines containing not more than fourteen per centum of abso- 
 lute alcohol, 4 e^nts per wine gallon, the per centum of alcohol- tax- 
 able under this section to be recKoned by volume and not by weight. 
 
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832 APPENDIX. 
 
 On wines containing more than fourteen per centum and not ex- 
 ceeding twenty-one per centum of absolute alcohol, 10 cents per wine 
 gallon. 
 
 On wines containing more then twenty-one per centum and not 
 exceeding twenty-four per centum of absolute alcohol, 25 cents per 
 wine gallon. 
 
 All such wines containing more than twenty-four per centum of 
 absolute alcohol by volume shall be classed as distilled spirits and 
 shall pay tax accordingly : Provided, That on all unsold still wines in 
 the actual possession of the producer at the time this title takes effect, 
 upon whicn the tax imposed by the Act approved October twenty- 
 second, nineteen hundred and fourteen, entitled "An Act to increase 
 the internal revenue and for other purposes," and the joint resolu- 
 tion approved December seventeenth, nineteen hundred and fifteen, 
 entitled "Joint resolution extending the provisions of the Act en- 
 titled 'An Act to increase the internal revenue, and for other purposes,' 
 approved October twenty-second, nineteen hundred and fourteen, to 
 December thirty-first, nineteen hundred and sixteen," has been as- 
 sessed, the tax so assessed shall be abated, or, if paid, refunded under 
 such regulations as the Commissioner of Internal Revenue, with the 
 approval of the Secretary of the Treasury, may prescribe. 
 
 Provision for abatement or refund of tax assessed under act of October 
 22, 1914, on domestic wines held to apply to tax on brandy used in fortify- 
 ing sucli wines. (T. D. 2440.) 
 
 Payment of taxes by stamp; notice; tond; inTCHtoTics; labels, etc. 
 
 (b) That the taxes imposed by this section shall be paid by stamp 
 on removal of the wines from the customshouse, winery, or other 
 bonded place of storage for consumption or sale, and every person 
 hereafter producing, or having in his possession or under his control 
 when this section takes effect, any wines subject to the tax imposed 
 in this section shall file such notice, describing the premises on which 
 such wines are produced or stored; shall execute a bond in such 
 form;^shall make such inventories under oath; and shall, prior to 
 sale or removal for consumption, affix to each cask or vessel contain- 
 ing such wine such marks, labels, or stamps as the Commissioner of 
 Internal Revenue, with the approval of the Secretary of the Treasury, 
 may from time to time prescribe ; and the premises described in such 
 notice shall, for the purpose of this section, be regarded as bonded 
 premises; But the provisions of this subdivision of this section, 
 except as to payment of tax and the affixino- of the required stamps 
 or labels, shall not apply to wines held by retail dealers, as defined 
 in section thirty-two hundred and forty-four of the Revised Statutes 
 of the United States, nor, subject to regulations prescribed by the 
 Commissioner of Internal Revenue, with the approval of the Secretary 
 of the Treasury, shall the tax imposed by this section apply to wines 
 produced for the family use of the producer thereof and not sold or 
 otherwise removed frorh the place of manufacture and not exceeding 
 in any case two hundred gallons per year. The Commissioner of 
 Internal Revenue is hereby authorized to have prepared and issue 
 such stamps denoting payment of the tax imposed by this section 
 as he may deem requisite and necessary; and until such stamps are 
 provided the taxes imoosed by this. section shall be assessed and col- 
 lected as other taxes sR&im^^S IMO^ISMed, and all provisions of 
 
APPENDIX, 833 
 
 law relating to assessment and collection of taxes, so far as aijplicable, 
 are hereby extended to the taxes imposed by this section. 
 
 Regulations relative to production of wine in quantities not exceeding 
 1,000 gallons per year. (T. D. 2765.) 
 
 Wlllidntnal nf grapo brandy or nine spirits. 
 
 (c) That under such regulations and official supervision and upon 
 the giving of such notices, entries, bonds, and other security as the 
 Commissioner of Internal EBvenue, with the approval of the Secre- 
 tary of the Treasury, may prescribe, any producer of wines defined 
 under the provisions of this section or section four hundred and one 
 of this Act, may withdraw from any fruit distillery or special bonded 
 warehouse grape brandy, or wine spirits, for the fortification of such 
 wines on the premises where actually made: Provided, That there 
 shall be levied and assessed against the producer of such wines a 
 tax of 10 cents per proof gallon of grape brandy or wine spirits so 
 used by him in the fortification of such wines during the preceding 
 month, which assessment shall be paid by him within six months 
 from the date of notice thereof: Provided further, That nothing 
 herein contained shall be construed as exempting any wines, cordials, 
 liqueurs, or similar compounds from the payment of any tax provided 
 for in this section. 
 
 That sections fortj'-two, forty-three, and forty-five of the Act of 
 October first, eighteen hundred and ninety, as amended by section 
 sixty-eight of the Act of August twenty-seventh, eighteen hundred 
 and ninety-four, are further amended to read as follows: 
 
 Wine spirits used free of tax, 
 
 " Sec. 42. That any producer of pure sweet wines may use in the 
 preparation of such sweet wines, under such regulations and after 
 the filing of such notices and bonds, together with the keeping of 
 such records and the rendition of such reports as to materials and 
 products as the Commissioner of Internal Ee venue, with the approval 
 of the Secretary of the Treasui-y, may prescribe, v/ine spirits pro- 
 duced by any duly authorized distiller, and the Commissioner of 
 Internal Eevenue, in determining the liability of any distiller of 
 wine spirits to assessment under section thirty-three hundred and 
 nine of the Eevised Statutes, is authorized to allow such distiller 
 credit in his computations for the wine spirits withdrawn to be used 
 in fortifying sweet wines under this Act, 
 
 Wine spirits defined; irben irater may be used; alcoholic strength when water has been used. 
 
 " Sec, 43, That the wine spirits mentioned in section forty-two 
 herein mentioned is the product resulting from the distillation of 
 fermented grape juice, to which water may have been added prior to, 
 during, or after fermentation, for the sole purpose of facilitating the 
 fermentation and economical distillation thereof, and shall be held 
 to include the product from grapes or their residues commonly 
 known as grape brandy, and shall include commercial grape brandy 
 which may have been colored with burnt sugar or caramel ; and the 
 pure sweet wine which may be fortified with wine spirits under the 
 
 140184° -20 — 53 Digitized by Microsoft® 
 
834 APPENDIX. 
 
 provisions of this Act is fermented or partially fermented grape 
 juice only, with the usual cellar treatment, and shall contain no 
 other substance whatever introduced before, at the time of, or after 
 fermentation, except as herein expressly provided: Provided, That 
 the addition of pure boiled or condensed, grape must or pure crystal- 
 lized cane or beet sugar, or pure dextrose sugar containing, respec- 
 tively, not less than ninety-five per centum of actual sugar, calculated 
 on a dry basis, or water, or any or all of them, to the pure grape juice 
 before fermentation, or to the fermented product of such grape 
 juice, or to both, prior to the fortification herein provided for, 
 either for the purpose of perfecting sweet wines according to com- 
 mercial standards or for mechanical purposes, shall not be excluded 
 by the definition of pure sweet wine aforesaid: Provided, however. 
 That the cane or beet sugar, or pure dextrose sugar added for sweeten- 
 ing purposes shall not be in excess of eleven per centum of the weight 
 of the wine to be fortified : Arid provided further, That the addition 
 of water herein authorized shall be under such regulations as the 
 Commissioner of Internal Kevenue, with the approval of the Secre- 
 tary of the Treasury, may from time to time prescribe: Provided, 
 however, That records kept in accordance with such regulations as to 
 the percentage of saccharine, acid, alcoholic, and added water content 
 of the wine offered for fortification shall be open to inspection by any 
 official of the Department of Agriculture thereto duly authorized by 
 the Secretary of Agriculture • but in no case shall such wines to which 
 water has been added be eligible for fortification under the provisions 
 of this Act, where the same, after fermentation and before fortifica- 
 ■ tion, have an alcoholic strength of less than five per centum of their 
 volume. 
 
 withdrawal of spirits from warchonse free of tax. 
 
 " Sec. 45. That under such regulations and official supervision, and 
 upon the execution of such entries and the giving of such bonds, bills 
 of lading, and other security as the Commissioner of Internal Reve- 
 nue, with the approval of the Secretary of the Treasury, shall pre- 
 scribe, any producer of pure sweet wines as defined by this Act may 
 withdraw wine spirits from any special bonded 'warehouse in original 
 packages or from any registered distillery in any quantity not less 
 than eighty wine gallons, and may use so much of the same as may 
 be required by him under such regulations, and after the filing of 
 such notices and bonds and the keeping of such records and the rendi- 
 tion of such reports as to materials and products and the disposition 
 of the same as the Commissioner of Internal Eevenue, with the 
 approval of the Secretary of the Treasury, shall prescribe, in forti- 
 fying the pure sweet wines made by him, and for no other purpose, 
 in accordance with the foregoing limitations and provisions; and 
 the Commissioner of Internal Eevenue, with the approval of the 
 Secretary of the Treasury, is authorized whenever he shall deem it to 
 be necessary for the prevention of violations of this law to prescribe 
 that wine spirits withdrawn under this section shall not be used to 
 fortify wines except at a certain distance prescribed by him from 
 any distillery, rectifying house, winery, or other establishment used 
 for producing or storing distilled spirits, or for making or storing 
 wines other than wines which are so fortified, and that in the build- 
 ing in which such fortification of wines is practiced no wines or spirits 
 Digitized by Microsoft® 
 
APPENDIX. 835 
 
 other than those permitted b;^ this regulation shall be stored in any 
 room or part of the building in which fortification of wines is prac- 
 ticed. The use of wine spirits for the fortification of sweet wines 
 under this Act shall be under the immediate supervision of an officer 
 of internal revenue, who shall make returns describing the kinds and 
 quantities of wine so fortified, and shall affix such stamps and seals 
 to the packages containing such wines as may be prescribed by the 
 Commissioner of Internal Revenue, with the approval of the Secre- 
 tary of the Treasury; and the Commissioner of Internal Revenue, 
 with the approval of the Secretary of the Treasury, shall provide by 
 regulations the time within which wines so fortified with the wine 
 spirits so withdrawn may be subject to inspection, and for final ac- 
 counting for the use of such wine spirits and for rewarehousing or 
 for payment of the tax on any portion of such wine spirits which 
 remain not used in fortifying pure sweet wines." 
 
 Bcmorsl for storage on bonded premises. 
 
 (d) That under such regulations and upon the execution of such 
 notices, entries, bonds, and other security as the Commissioner of 
 Internal Revenue, with the approval of the Secretary of the Treasury, 
 may prescribe, domestic wines subject to the tax imposed by this 
 section may be removed from the winery where produced, free of 
 tax, for storage on other bonded premises or from said premises to 
 other bonded premises : Provided^ That not more than one such ad- 
 ditional removal shall be allowed, or for exportation from the United 
 States or for use as distilling material at any regularly registered 
 distillery : Provided, however, That the distiller using any such wine 
 as material shall, subject to the provisions of section thirty-three 
 hundred and nine of the Revised Statutes of the United States, as 
 amended, be held to pay the tax on the product of such wines as will 
 include both the alcoholic strength therein produced by fermenta- 
 tion and that obtained from the brandy or wine spirits added to such 
 wines at the time of fortification. 
 
 Regulations governinc: tvnnsfei' of wines free of tax from bonded 
 premises to manufacturing warehouse. (T. D. 2738.) 
 
 lYincs, liquenrs, and similar compounds. 
 
 (e) That upon all domestic and imported sparkling wines, liqueurs, 
 cordials, and similar compounds remaining in the hands of dealers 
 when this section takes effect, or thereafter removed from the place 
 of manufacture or storage for sale or consumption, there shall be 
 levied and paid, by stamp, taxes as follows : 
 
 On each bottle or other container of champagne or sparkling wine, 
 3 cents on each one-half pint or fraction thereof. 
 
 On each bottle or other container of artificially carbonated wine, 
 1| cents on each one-half pint or fraction thereof. 
 
 On each bottle or other container of liqueurs, cordials, or similar 
 compounds, by whatever name sold or offered for sale, containing 
 sweet wine, fortified with grape brandy under the provisions of para- 
 graph (c) of this section, 1| cents on' each one-half pint or fraction 
 thereof. 
 
 The taxes imposed by this section shall not apply to wines, liqueurs, 
 or cordials on which the tax imposed by the Act approved October 
 Digitized by Microsoft® 
 
836 APPENDIX. 
 
 twenty-second, nineteen hundred and fourteen, entitled "An Act to 
 increase the internal revenue, and for other purposes," and the joint 
 resolution approved December seventeenth, nineteen hundred and 
 fifteen, entitled " Joint resolution extending the provisions of the Act- 
 entitled ' An Act to increase the internal revenue, and for other pur- 
 poses,' approved October twenty-second, nineteen hundred and 
 fourteen, to December thirty-first, nineteen hundred and sixteen," 
 has been paid by stamp. 
 
 The Commissioner of Internal Kevenue, with the approval of the 
 Secretary of the Treasury, is hereby authorized to have prepared 
 suitable revenue stamps denoting the payment of the taxes imposed 
 by this section ; and all provisions of law relating to internal-revenue 
 stamps, so far as applicable, are hereby extended to the taxes imposed 
 by this section : Pro ^nded, That the collection of the tax herein pre- 
 scribed on imported still wines, including vermouth, and sparkling 
 wines, including champagne, and on imported liqueurs, cordials, and 
 similar compounds, may be made within the discretion of the Com- 
 missioner of Internal Revenue, with the approval of the Secretary 
 of the Treasury, by assessment instead of by stamps. 
 
 Penalties. 
 
 (f ) That any person who shall evade or attempt to evade the tax 
 imposed by this section, or any requirement of this section or regu- 
 lation issued pursuant thereof, or who shall, otherwise than provided 
 in this section, recover or attempt to recover any spirits from domes- 
 tic or imported wine, or who shall rectify, mix, or compound with 
 distilled spirits any domestic wines, other than in the manufacture 
 of liqueurs, cordials, or similar compounds taxable under the provi- 
 sions of this section, shall, on conviction, be punished for each such 
 offense by a fine of not exceeding $5,000, or imprisonment for not 
 more than five years, or both, and all wines, spirits, liqueurs, cordials, 
 or similar compounds as to which such violation occurs shall be 
 forfeited to the United States. But the provision of this subdivision 
 of this section and the provision of section thirty-two hundred and 
 forty-four of the Eevised Statutes of the United States, as amended, 
 relating to rectification, or other internal-revenue laws of the United 
 States, shall not be held to apply to or prohibit the mixing or blend- 
 ing of wines subject to tax under the provisions of this section with 
 each other or with other wines for the sole purpose of perfecting such 
 wines according to commercial standards: Provided, That nothing 
 herein contained shall be construed as prohibiting the use of tax-paid 
 grain or other ethyl alcohol in the fortification of sweet wines as 
 defined in section fifty-three of this Act. 
 
 Meters, locks, and seals. 
 
 (g) That the Commissioner of Internal Revenue, by regulations 
 to be approved by the Secretary of the Treasury, may require the 
 use at each fruit distillery of such spirit meters, and such locks and 
 seals to be affixed to fermenters, tanks, or other vessels and to such 
 pipe connections as may in his judgment be necessary or expedient; 
 and the said commissioner is hereby authorized to assign to any 
 such distillery and to each winery where wines are to be fortified 
 
 Digitized by Microsoft® 
 
APPENDIX. 83V 
 
 such number of gaugers or storekeeper-gaugers in the capacity of 
 
 ?■ augers as may be necessary for the proper supervision of the manu- 
 acture of brandy or the making or fortifying of wines subject to tax 
 imposed by this section ; and the compensation of such officers shall 
 not exceed $5 per diem while so assig-ned, together with their actual 
 and necessary traveling expenses, and also a reasonable allowance 
 for their board bills, to be fixed by the Commissioner of Internal 
 Revenue, with the approval of the Secretary of the Treasury, but not 
 to exceed $2.5(> per diem for said board bills. 
 
 AUownnces for losses. 
 
 (h) That the Commissioner of Internal Revenue, with the ap- 
 proval of the Secretary of the Treasury, is hereby authorized to make 
 such allowances for unavoidable loss of wines while on storage or 
 during cellar treatment as in his judgment may be just and proper, 
 and to prepare all necessary regulations for carrying into effect the 
 l^rovisions of this section. 
 
 Section 3261, Revised Statutes, amended. 
 
 (i) That the second paragraph of section thirty-two hundred and 
 sixty-four. Revised Statutes of the United States of America, as 
 amended by section five of the Act of March first, eighteen hundred 
 and seventy-nine, and as further amended by the Act of Congress 
 approved June twenty-second, nineteen hundred and ten, be amended 
 so as to read as follows : 
 
 "In all surveys forty-five gallons of mash or beer brewed or fer- 
 mented from grain shall represent not less than one bushel of grain, 
 and seven gallons of mash or beer brewed or fermented from mo- 
 lasses shall represent not less than one gallon of molasses, except in 
 distilleries operated on the sour-mash principle, in which distilleries 
 sixty gallons of beer brewed or fermented from grain shall represent 
 not less than one bushel of grain, and except that in distilleries where 
 the filtration-aeration process is used, with the approval of the Com- 
 missioner of Internal Revenue ; that is, where the mash after it leaves 
 the mash tub is passed through a filtering machine before it is run 
 into the. fermenting tub, and only the filtered liquor passes into the 
 fermenting tub, there shall hereafter be no limitation upon the num- 
 ber of gallons of wa^r which may be used in the process of mashing 
 or filtration for fermentation; but the Commissioner of Internal 
 Revenue, with the approval of the Secretary of the Treasury, in order 
 to protect the revenue, shall be authorized to prescribe by regulation, 
 to be made by him, such character of survey as he may find suitable 
 for distilleries using such filtration-aeration process. The provisions 
 hereof relating to filtration-aeration process shall apply only to 
 sweet-mash distilleries." 
 
 Withdrairal lor export. 
 
 Sec. 403. That under such regulations as the Commissioner of 
 Internal Revenue, with the approval of the Secretary of the Treasury, 
 may prescribe, alcohol or other distilled spirits of a proof strength of 
 not less than one hundred and eighty degrees intended for export 
 free of tax may be drawn from receiving cisterns at any distillery, or 
 from storage tanks in any distillery warehouse, for transfer to tanks 
 Digitized by Microsoft® 
 
838 APPENDIX, 
 
 or tank cars for export from the United States, and all provisions of 
 existing law relating to the exportation of distilled spirits not incon- 
 sistent herewith shall apply to spirits removed for export under the 
 provisions of this Act. 
 
 Regulations governing exportation of alcohol in tanks or tank cars 
 (T. D. 2368.) 
 
 Section 3355, IterlsFd Statutes, amondcd. 
 
 Sec. 404. That section thirty-two hundred and fifty -five of the 
 Revised Statutes as amended by Act of June third, eighteen hundred 
 and ninety-six, and as further amended by Act of March second, 
 nineteen hundred and eleven, be further amended so as to read as 
 follows : 
 
 " Sec. 3255. The Commissioner of Internal Revenue, with the ap- 
 proval of the Secretary of the Treasury, may exempt distillers of 
 brandy made exclusively from apples, peaches, grapes, pears, pine- 
 apples, oranges, apricots, berries, plums, pawpaws, persimmons, 
 l^runes, figs, or cherries from any provision of this title relating to 
 the manufacture of spirits, except as to the tax thereon, when in 
 his judgment it may seem expedient to do so : Provided, That where, 
 in manufacture of wine, artificial sweetening has been used the wine 
 or the fruit pomace residuum may be used in the distillation of 
 brandy, as such use shall not prevent the Commissioner of Internal 
 Revenue, with the approval of the Secretary of the Treasury, from 
 exempting such distiller from any provision of this title relating to 
 the manufacture of spirits, except as to the tax thereon, when in his 
 judgment it may seem expedient to do so: And frovided fviHher, 
 That the distillers mentioned in this section may add to not less than 
 five hundred gallons (or ten barrels) of grape cheese not more than 
 five hundred gallons of a sugar solution made from cane, beet, starch, 
 or corn sugar, ninety-five per centum pure, such solution to have a 
 saccharine strength of not to exceed ten per centum, and may ferment 
 the resultant mixture on a winery or distillery premises, and such 
 fermented product shall be regarded as distilling material." 
 
 Exemption of distillers of brandy from grape juice, to whicli sugar 
 solution has been added after manufacture of wine, either at the winery 
 or on distillery premises, from same provision of law from vchich dis- 
 tillers of brandy from other authorized fruits have been exempted. (T. D. 
 2373.) 
 
 Gin; bottling in bond. * 
 
 Sec. 405. That distilled spirits Imown commercially as gin of not 
 less than 80 per centum proof may at any time within eight years 
 after entry in bonds at any distillery be bottled in bond at such dis- 
 tillery for export without the payment of tax, under such rules and 
 regulations as the Commissioner of Internal Revenue, with the ap- 
 proval of the Secretary of the Treasury, may prescribe. 
 
 Regulations govei'ning withdrawal and bottling in bond for export of 
 gin before expiration of four years after entry in bonded distillery 
 warehouse. (T. D. 2371.) 
 
 Srctlon 3354, Berlscd Statutes, amended. 
 
 Sec. 406. That section thirty-three hundred and fifty-four of the 
 Revised Statutes of the United States as amended by the Act approved 
 
 Digitized by Microsoft® 
 
APPENDIX. 839 
 
 June eighteenth, eighteen hundred and ninety, be, and is hereby, 
 amended to read as follows : 
 
 " Sec. 3354. Every person who withdraws any fermented liquor 
 from any hogshead, barrel, keg, or other vessel upon which the 
 proper stamp has not been affixed for the purpose of bottling the 
 same, or who carries on or attempts to carry on the business of bot- 
 tling fermented liquor in any brewery or other place in which fer- 
 mented liquor is made, or upon any premises having communication 
 with such brewery, or any warehouse, shall be liable to a fine of $500, 
 and the property used in such bottling or business shall be liable to 
 forfeiture : Provided, however, That this section shall not be construed 
 to prevent the withdrawal and transfer of unfermented, partially 
 fermented, or fermented liquors from any of the vats in any brewery 
 by way of a pipe line or other conduit to another building or place for 
 the sole purpose of bottling the same, such pipe line or conduit to be 
 constructed and operated in such manner and with such cisterns, 
 vats, tanks, valves, cocks, faucets, and gauges, or other utensils or 
 apparatus, either on the premises of the brewery or the bottling house, 
 and with such changes of or additions thereto, and such locks, seals, 
 or other fastenings, and under such rules and regulations as shall be 
 from time to time prescribed' by the Commissioner of Internal 
 Revenue, subject to the approval of the Secretary of the.Treasury, and 
 all locks and seals prescribed shall be provided by the Commissioner 
 of Internal Revenue at the expense of the United States: Provided 
 further, That the tax imposed in section thirty-three hundred and 
 thirty-nine of the Revised Statutes of the United States shall be paid 
 on all fermented liquor removed from a brewery to a bottling house 
 by means of a pipe or conduit, at the time of such removal, by the 
 cancellation and defacement, by the collector of the district or his 
 deputy, in the presence of the brewer, of the number of stamps 
 denoting the tax on the fermented liquor thus removed. The 
 stamps thus canceled and defaced shall be disposed of and accounted 
 for in the manner directed by the Commissioner of Internal Revenue, 
 with the approval of the Secretary of the Treasury. And any viola- 
 tion of the rules and regulations hereafter prescribed by the Commis- 
 sioner of Internal Revenue, with the approval of the Secretary of the 
 Treasury, in pursuance of these provisions, shall be subject to the 
 penalties above provided by this section. Every owner, agent, or 
 superintendent of any brewery or bottling house who removes, or 
 connives at the removal of, any fermented liquor through a pipe line 
 or conduit, without payment of the tax thereon, or who attempts in 
 any manner to defraud the revenue as above, shall forfeit all the 
 liquors made by and for him, and all the vessels, utensils, and 
 apparatus used in making the same." 
 
 Special taxes. 
 
 Sec. 407. That on and after January first, nineteen hundred and 
 seventeen, special taxes shall be, and hereby are, imposed annually, 
 as follows, that is to say : 
 
 Every corporation, joint-stock company or association, now or 
 
 hereafter organized in the United States for profit and having a 
 
 capital stock represented by shares, and every insurance company, 
 
 now or hereafter organized under the laws of the United States, or 
 
 Digitized by Microsoft® 
 
840 APPENDIX. 
 
 any State or Territory of tlie United States, shall pay annually a 
 special excise tax with respect to the carrying on or doing business 
 by such corporation, joint-sto'ck company or association, or insurance 
 company, equivalent to 50 cents for each $1,000 of the fair value of its 
 capital stock and in estimating the value of capital stock the surplus 
 and undivided profits shall be included : Provided^ That in the case 
 of insurance companies such deposits and reserve funds as they are 
 required by law or contract to maintain or hold for the protection of 
 or payment to or apportionment among policyholders shall not be 
 included. The amount of such annual tax shall in all cases be com- 
 puted on the basis of the fair average value of the capital stock for 
 the preceding year: Provided^ That for the purpose of this tax an 
 exemption of $99,000 shall be allowed from the capital stock as 
 defined in this paragraph of each corporation, joint-stock company 
 or association, or insurance company: Provided further^ That a cor- 
 poration, joint-stock company or association, or insurance company, 
 actually paying the tax imposed by section three hundred and one of 
 Title III of this Act shall be entitled to a credit as against the tax 
 imposed by this paragraph equal to the amount of the tax so actually 
 paid : And provided further, That this tax shall not be imposed upon 
 any corporation, joint-stock company or association, or insurance 
 company not engaged in business during the preceding taxable year, 
 or which is exempt under the provisions of section eleven. Title I, 
 of this Act. 
 
 Every corporation, joint-stock company or association, or insur- 
 ance company, now or hereafter organized for profit under the laws 
 of any foreign country and engaged in business in the United States 
 shall pay annually a special excise tax with respect to the carrying on 
 or doing business in the United States by such corporation, joint- 
 stock company or association, or insurance company, equivalent to 
 50 cents for each $1,000 of the capital actually invested in the trans- 
 action of its business in the United States: Provided, That in the 
 case of insurance companies such deposits or reserve funds as they 
 are required by law or contract to maintain or hold in the United 
 States for the protection of or payment to or apportionment among 
 policyholders, shall not be inclucled. The amount of such annual 
 tax shall in all cases be computed on the basis of the average amount 
 of capital so invested during the preceding year: Provided, That for 
 the purpose of this tax an exemption from the amount of capital so 
 invested shall be allowed equal to such proportion of $99,000 as the 
 amount so invested bears to the total amount invested in the trans- 
 action of business in the United States or elsewhere : Provided fv/r- 
 iher. That this exemption shall be allowed only if such corporation, 
 joint-stock company or association, or insurance company makes 
 return to the Commissioner of Internal Kevenue, under regulations 
 prescribed by him, with the approval of the Secretary of the Treas- 
 ury, of the amount of capital invested in the transaction of business 
 outside the United States : And provided further. That a corporation, 
 joint-stock company or association, or insurance company actually 
 paymg the tax imposed by section three hundred and one of Title III 
 of this act, shall be entitled to a credit as against the tax imposed by 
 this paragraph equal to the amount of the tax so actually paid: 
 And provided further. That this tax shall not be imposed upon any 
 corporation, joint-stock company or association, or insurance com- 
 Digitized by Microsoft® 
 
APPENDIX. 841 
 
 pany not engaged in business during the preceding taxable year, or 
 which is exempt under the provisions of section eleven, Title I, of 
 this Act.^ , , 
 
 Second. Brokers shall pay $30. Every person, firm, or company, 
 whose business it is to negotiate purchases or sales of stocks, bonds, 
 exchange, bullion, coined money, bank notes, promissory notes, or 
 other securities, for others, shall be regarded as a broker. 
 
 Third. Pawnbrokers shall pay $50. Every person, firm, or com- 
 pany whose business or occupation it is to take or receive, by way of 
 pledge, pawn, or exchange, any goods, wares, or merchandise, or any 
 kind of personal property whatever, as security for the repayment of 
 money loaned thereon, shall be deemed a pawnbroker. 
 
 Fourth. Ship brokers shall pay $20. Every person, firm, or com- 
 pany whose business it is as a broker to negotiate freights and other 
 business for the owners of vessels, or for the shippers or consignors 
 or consignees of freight carried by vessels, shall be regarded as a 
 ship broker under this section. 
 
 Fifth. Customliouse brokers shall pay $10. Every person, firm, 
 or company whose occupation it is, as the agent of others, to arrange 
 entries and other customhouse papers, or transact business at any 
 port of entry relating to the importation or exportation of goods, 
 wares, or merchandise, shall be regarded as a customhouse broker. 
 
 Sixth. Proprietors of theaters, museums, and concert halls, where 
 a charge for admission is made, having a seating capacity of not more 
 than two hundred and fifty, shall pay $25 ; having a seating capacity 
 of more than two hundred and fifty and not exceeding five hundred, 
 shall pay $50 ; having a seating capacity exceeding five hundred and 
 not exceeding eight hundred, shall pay $75 ; having a seating capac- 
 ity of more than eight hundred, shall pay $100. Every edifice 
 used for the purpose of dramatic or operatic or other representations, 
 plays, or performances, for admission to which entrance money ig 
 received, not including halls or armories rented or used occasionally 
 for concerts or theatrical representations, shall be regarded as a 
 theater : Provided, That in cities, towns, or villages of five thousand 
 inhabitants or less the amount of such payment shall be one-half of 
 that above stated : Provided further, That whenever any such edifice 
 is under lease at the passage of this Act, the tax shall be paid by the 
 lessee, unless otherwise stipulated between the parties to said lease. 
 
 Seventh. The proprietor or proprietors of circuses shall pay $100. 
 Every building, space, tent, or area where feats of horsemanship or 
 acrobatic sports or theatrical performances not otherwise provided 
 for in this section are exhibited shall be regarded as a circus: Pro- 
 vided, That no special tax paid in pne Stat«, Territory, or the District 
 of Columbia shall exempt exhibitions from the tax in another State, 
 Territory, or the District of Columbia, and but one special tax 
 shall be imposed for exhibitions within any one State, Territory, or 
 District. 
 
 Eighth. Proprietors or agents of all other public exhibitions or 
 shows for money not enumerated in this section shall pay $10 : Pro- 
 vided, That a special tax paid in one State, Territory, or the District 
 of Columbia shall not exempt exhibitions from the tax in another 
 State, Territory, or the District of Columbia, and but one special 
 
 " See PQEUlations No.. 38 (T. D. 2750) . 
 
 Digitized by Microsoft® 
 
842 APPENDIX. 
 
 tax shall be required for exhibitions within any one State, Territory, 
 or the District of Columbia : Provided further, That this paragraph 
 shall not apply to Chautauquas, lecture lyceums, agricultural or 
 industrial fairs, or exhibitions held under the auspices of religious or 
 charitable associations: Provided further, That an aggregation of 
 entertainments, known as a street fair, shall not pay a larger tax 
 than $100 in any State, Territory, or in the District of Columbia. 
 
 Ninth. Proprietors of bowling alleys and billiard rooms shall pay 
 $5 for each alley or table. Every building or place where bowls are 
 thrown or where games of billiards or pool are played, except in 
 private homes, shall be regarded as a bowling alley or a billiard room, 
 respectivelJ^ 
 
 Liability to capital stock tax of railroad corporations whose properties 
 are held and operated by Federal Government under Army appropria- 
 tion act of August 29, 1916. (T. D. 2800.) 
 
 Limited partnership of Pennsylvania type of partnerships with limited 
 liability are corporations or Joint-stock companies, and limited partner- 
 ships of the New York type are partnerships. (T. D. 2711.) 
 
 Synopsis decision relative to capital stock tax. (T. Ds. 2417, 2423, 
 2467.) 
 
 Citations from Supreme Court decisions regarding " doing business " 
 with relation to capital stock tax. (T. D. 2418.) 
 
 Holding companies organized in United States for profit held subject 
 to .capital stock tax. (T. D. 2429.) 
 
 Corporations in possession and control of receivers and held not tax- 
 able under act of August 5, 1909, are subject to capital stock tax. (T. 
 D. 2424.) 
 
 Post exchanges, if under Government control, not liable to special tax 
 for operating billiard or pool tables or bowling alleys. (T. D. 2439.) 
 
 Corporation organized to buy, own, explore, develop, lease, improve, 
 sell, and deal in lumber lands, mining lands, or other real property is 
 "engaged in business" and subject to capital stock tax. (T. D. 2457.) 
 
 Pool tables and bowling alleys are exempt from special tax if tax 
 would fall upon public treasury; otherwise tax is due on account of 
 pool tables and bowling alleys in States armories, fire houses, etc., and 
 also in clubs, Y. M. C. A. buildings, hotels, etc. (T. D. 2462.) 
 
 One who holds himself out as dealing in exchange and in the regular 
 course of business accepts orders and takes them to a bank for execu- 
 tion by the latter, receiving substantial remuneration for his services, 
 is liable to tax as a broker. (T. D. 2785.) 
 
 Tobacco, cigar, and cigarette maiiufactarers. 
 
 Sec. 408. That on and after January first, nineteen hundred and 
 seventeen, special taxes on tobacco, cigar, and cigarette manufac- 
 turers shall be, and hereby are, imposed annually as follows, the 
 amount of such annual taxes to be computed in all cases on the basis 
 of the annual sales for the preceding fiscal year : 
 
 Manufacturers of tobacco whose annual sales do not exceed fifty 
 thousand pounds shall each pay $3 ; 
 
 Manufacturers of tobacco whose annual sales exceed fifty thousand 
 and do not exceed one hundred thousand pounds shall each pay $6; 
 
 Manufacturers of tobacco whose annual sales exceed one hundred 
 thousand and do not exceed two hundred thousand pounds shall 
 each pay $12 ; 
 
 Manufacturers of tobacco whose annual sales exceed two hundred 
 thousand pounds shall each pay at the rate of 8 cents per thousand 
 pounds, or fraction thereof; 
 
 Digitized by Microsoft® 
 
APPENDIX, 843 
 
 Manufacturers of cigars whose annual sales do not exceed fifty 
 thousand cigars shall each pay $2; 
 
 Manufacturers of cigars whose annual sales exceed fifty thousand 
 and do not exceed one hundred thousand cigars shall each pay $3; 
 
 Manufacturers of cigars whose annual sales exceed one hundred 
 thousand and do not exceed two hundred thousand cigars shall each 
 pay $6 ; 
 
 Manufacturers of cigars whose annual sales exceed two hundred 
 thousand and do not exceed four hundred thousand cigars shall each 
 pay $12; 
 
 Manufacturers of cigars whose annual sales exceed four hundred 
 thousand cigars shall each pay at the rate of 5 cents per thousand 
 cigars, or fraction thereof; 
 
 Manufacturers of cigarettes, including small cigars weighing not 
 more than three pounds per thousand, shall each pay at the rate of 
 3 cents for every ten thousand cigarettes, or fraction thereof. 
 
 Tn arriving at the amount of special tax to be paid under this sec- 
 tion, and in the levy and collection of such tax, each person, firm, or 
 corporation engaged in the manufacture of more than one of the 
 classes of articles specified in this section shall be considered and 
 deemed a manufacturer of each class separately. 
 
 Every person who carries on any business or occupation for which 
 special taxes are imposed by this title, without having paid the 
 special tax therein provided, shall, besides being liable to the pay- 
 ment of such special tax, be deemed guilty of a misdemeanor, and 
 upon conviction thereof shall pay a fine of not more than $500, or be 
 imprisoned not more than six months, or both, in the discretion of 
 the court. 
 
 Application of earlier laws ; records and retnrns. 
 
 Sec. 409. That all administrative or special provisions of law, 
 including the law relating to the assessment of taxes, so far as appli- 
 cable, are hereby extended to and made a part of this title, and every 
 person, firm, conipany, corporation, or association liable to any tax 
 imposed by this title, shall keep such records and render, under oath, 
 such statements and returns, and shall comply with such regulations 
 as the Commissioner of Internal Kevenue, with the approval of the 
 Secretary of the Treasury, may from time to time prescribe. 
 
 Partial repeal of earlier laws. 
 
 Sec. 410. That the Act approved October twenty-second, nineteen 
 hundred and fourteen, entitled "An Act to increase the internal 
 revenue, and for other purposes," and the joint resolution approved 
 December seventeenth, nineteen hundred and fifteen, entitled 
 "Joint resolution extending the provisions of the Act entitled 'An 
 Act to increase the internal revenue, and for other purposes,' ap- 
 proved October twenty-second, nineteen hundred and fourteen, to 
 December thirty-first, nineteen hundred and sixteen," are hereby 
 repealed, except sections three and four of such Act as so extended, 
 which sections shall remain in force till January first, nineteen 
 hundred and seventeen, and except that the provisions of the said 
 Act shall remain in force for the assessment and collection of all 
 special taxes imposed by sections three and four thereof, or by such 
 
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844 
 
 APPENDIX. 
 
 sections as extended by said joint resolution, for any year or part- 
 thereof ending prior to January first, nineteen hundred and seven- 
 teen, and of all other taxes imposed by such Act, or by such Act as 
 so extended, accrued prior to the taking effect of this title, and for 
 the imposition and collection of all penalties or forfeitures which 
 have accrued or may accrue in relation to any of such taxes. 
 
 Allowance for or redemption of stamps. 
 
 Sec. 411. That the Commissioner of Internal Kevenue, subject to 
 regulation prescribed by the Secretary of the Treasury, may make 
 allowance for or redeem stamps, issued, under authority of the Act 
 approved October twenty-second, nineteen hundred and fourteen, 
 entitled "An Act to increase the internal revenue, and for other 
 purposes," and the joint resolution approved December seventeenth, 
 nineteen hundred and fifteen, entitled "Joint resolution extending 
 the provisions of the Act entitled 'An Act to increase the internal 
 revenue, and for other purposes,' approved October twenty-second, 
 nineteen hvmdred and fourteen, to December thirty-first, nineteen 
 hundred and sixteen," to denote the payment of internal revenue 
 tax, and which have not been used, if presented within two years 
 after the purchase of such stamps. 
 
 Title effectlTe irhen. 
 
 Sec. 412. That the provisions of this title shall take effect on the 
 day following the passage of this Act, except where otherwise in 
 this title provided. 
 
 LeaTC of absence of rcTcnnc agents and Inspectors. 
 
 Sec. 413. That all internal revenue agents and inspectors be 
 granted leave of absence with paj', which shall not be cumulative, 
 not to exceed thirty days in any calendar year, under such regula- 
 tions as the Commissioner of Internal Kevenue, with the approval 
 of the Secretary of the Treasury, may prescribe. 
 
 Regulations relating to leave of absence. (T. D. 2369.) 
 
 ^ ^ t^ ^ ii: ii; iil 
 
 TITLE IX. 
 
 Iffect of partial inralldlty of act. 
 
 Sec. 900. That if any clause, sentence, paragraph, or part of this 
 Act shall for any reason be adjudged by any court of competent juris- 
 diction to be invalid, such judgment shall not affect, impair, or in- 
 validate the remainder of said Act, but shall be confined in its opera- 
 tion to the clause, sentence, paragraph, or part thereof directly in- 
 volved in the controversy in which such judgment shall have been 
 rendered. 
 
 Act cffcctlTe >Then. 
 
 Sec. 902. That unless otherwise herein specially provided, this Act 
 shall take effect on the day following its passage, and all provisions 
 of any Act or Acts inconsistent with the provisions of this Act are 
 hereby repealed. 
 
 Digitized by Microsoft® 
 
'APPENDIX. 
 Citation cf act. 
 
 845 
 
 Sec; 903. [Added by see. 1403, Act of Fehrum-y 2^, 1919 {1^0 Stat., 
 1067).'] That this Act may be cited as the "Revenue Act of 1916." 
 
 Chapter 11. 
 
 AN ACT To proviGe increased revenue to defray the expenses of the increased 
 appropriations for the Army and Navy and the extensioas of fortifications, 
 and for other purposes. Approved March 3, 1917 (39 Stat., 1000). 
 
 Title II — Excess-profits tax. 
 
 Definitions. 
 
 Extra tax on incomes of corpora- 
 tions and partnerships ; insur- 
 ance exception ; computation. 
 
 Actual capital defined. 
 
 Basis of computation ; collection ; 
 fiscal year of partnership ; pro- 
 portion for calendar year 1916. 
 
 F]xeinptions. 
 
 Statement by corporation of ac- 
 tual capital invested; detailed 
 .statement by partnership ; de- 
 ductions. 
 
 Title II — Excess - profits tax — Cwi- 
 tinued. 
 General laws applicable. 
 Regulations. 
 Title III — Estate tax. 
 _ Increase of rates. 
 "Prior transfers at former rates. 
 Title IV — Miscellaneous. 
 
 Sworn returns of all dividends 
 by corporations, etc. ; names of 
 shareholders. 
 
 TITLE II.— EXCESS-PROFITS TAX.^ 
 
 Definitions. 
 
 Sec. 200. That when used in this title — ■ 
 
 The term " corporation " includes joint-stock companies or asso- 
 ciations, and insurance companies ; 
 
 The term " United States " means only the States, the Territories 
 of Alaska and Hawaii, and the District of Columbia; and 
 
 The term " taxable year " means the twelve months ending Decem- 
 ber thirty-first, except in the case of a corporation or partnership 
 allowed to fix its own fiscal year, in which case it means such fiscal 
 year. The first taxable year shall be the year ending December 
 thirty -first, nineteen hundred and seventeen. 
 
 BatcB of taxes ; computation. 
 
 Sec. 201. That in addition to the taxes under existing laws there 
 shall be levied, assessed, collected, and paid for each taxable year 
 upon the net income of every corporation and partnership organized, 
 authorized, or existing under the laws of the United States, or of 
 any State, Territory, or District thereof, no matter how created or 
 organized, excepting income derived from the business of life, health, 
 and accident insurance combined in one policy issued on the weekly 
 premium payment plan, a tax of eight per centum of the amount by 
 -Mihich such net income exceeds the sum of (a) $5,000 and (b) eight 
 per centum of the actual capital invested. 
 
 Every foreign corporation and partnership, including corporations 
 and partnerships of the Philippine Islands and Porto Rico, shall pay 
 
 J Repealed by act of Oct. 3, 1917 ; sec. 214 ; see p. 861. 
 
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846 
 
 APPENDIX. 
 
 for each taxable year a like tax upon the amount by which its net 
 income received from all sources within the United States exceeds the 
 sum of (a) eight per centum of the actual capital invested and used 
 or employed in the business in the United States, and (b) that pro- 
 portion of $5,000 which the entire actual capital invested and used 
 or employed in the business in the United States bears to the entire 
 actual capital invested; and in case no such capital is used or em- 
 ployed in the business in the United States the tax shall be imposed 
 upon that portion of such net income which is in excess of the sum 
 of (a) eight per centum of that proportion of the entire actual cap- 
 ital invested and used or employed in the business which the net in- 
 come from sources within the United States bears to the entire net 
 income, and (b) that proportion of $5,000 which the net income from 
 sources within the United States bears to the entire net income. 
 
 Actual capital defined. 
 
 Sec. 202. That for the purpose of this title actual capital invested 
 means (1) actual cash paid in, (2) the actual cash value at the time 
 of payment of assets other than cash paid in, and (3) paid in or 
 earned surplus and undivided profits used or employed in the busi- 
 ness ; but does not include money or other property borrowed by the 
 corporation or partnership. 
 
 Computation of tax ; eollectloi:. 
 
 Sec. 203. That the tax herein imposed upon corporations and 
 partnerships shall be computed upon the basis of the net income 
 shown by their income-tax returns under Title I of the act entitled 
 "An act to increase the revenue, and for other purposes," approved 
 September eighth, nineteen hundred and sixteen, or under this title, 
 and shall be assessed and collected at the same time and in the same 
 manner as the income tax due under Title I of such act of Septem- 
 ber eighth, nineteen hundred and sixteen: Provided, That for the 
 purpose of this title a partnership shall have the same privilege with 
 reference to fixing its fiscal year as is accorded corporations under 
 section thirteen (a) of Title I of such act of September eighth, nine- 
 teen hundred and sixteen: And provided further, That where a 
 corporation or partnership makes return prior to March first, nine- 
 teen hundred and eighteen, covering its own fiscal year and includes 
 therein anv income received during the calendar year ending De- 
 cember thirty-first, nineteen hundred and sixteen, the tax herein 
 imposed shall be that proportion of the tax based upon such full 
 fiscal year which the time from January first, nineteen hundred and 
 se^-enteen, to the end of such fiscal year bears to the full fiscal year. 
 
 Exomptloiu. 
 
 Sec. 204. That corporations exempt from tax under the provisions 
 of section eleven of Title I of the act approved September eighth, 
 nineteen hundred and sixteen, and partnerships carrying on or doing 
 the same business shall be exempt from the provisions of this title, 
 and the tax imposed by this title shall not attach to incomes of part- 
 nerships derived from agriculture or from personal services. 
 
 Digitized by Microsoft® 
 
APPENDIX. 847 
 
 Statement In return; deductlong. 
 
 Sec. 205. That every corporation having a net income of $5,000 or 
 more for the taxable year making a return under Title I of such act 
 of September eighth, nineteen hundred and sixteen, shall for the pur- 
 poses of this title include in such return a detailed statement of the 
 actual capital invested. 
 
 Every partnership having a net income of $5,000 or more for the 
 taxable year shall render a correct return of the income of the part- 
 nership for the taxable year, setting forth specifically the actual 
 capital invested and the gross income for such year and the deduc- 
 tions hereinafter allowed. Such returns shall be rendered at the 
 same time and in the same maimer and form as is prescribed for 
 income-tax returns under Title I of such act of September eighth, 
 nineteen hundred and sixteen. In computing net income of a part- 
 nership for the purposes of this title there shall be allowed like de- 
 ductions as are allowed to individuals in sections five (a) and six 
 (a) of such act of September eighth, nineteen hundred and sixteen. 
 
 General lairs appllcaMe. 
 
 Sec. 206. That all administrative, special, and general provisions 
 of law, including the laws in relation to the assessment, remission, 
 collection, and refund of internal-revenue taxes not heretofore spe- 
 cifically repealed and not inconsistent with the provisions of this 
 title are hereby extended and made applicable to all the provisions of 
 this title and to the tax herein imposed, and all provisions of Title I 
 of such act of September eighth, nineteen hundred and sixteen, re- 
 lating to returns and payment of the tax therein imposed, including 
 penafties, are hereby made applicable to the tax required by this title. 
 
 Begnlations. 
 
 Sec. 207. That the Commissioner of Internal Revenue, with the 
 approval of the Secretary of the Treasury, shall make all necessary 
 regulations for carrying out the provisions of this title and may 
 require any corporation or partnership subject to the provisions of 
 this title to furnish him with such facts, data, and information as in 
 his judgment are necesary to collect the tax provided for in this 
 title. 
 
 TITLE III.— ESTATE TAX.^ 
 
 Bates increased. 
 
 Sec. 300. That section two hundred and one. Title II, of the Act 
 entitled "An Act to increase the revenue, and for other purposes," 
 approved September eighth, nineteen hundred and sixteen be, and 
 the same is hereby, amended to read as follows : 
 
 " Sec. 201. That a tax (hereinafter in this title referred to as the 
 tax), equal to the following percentages of the value of the net estate. 
 to be determined as provided in section two hundred and three, is 
 
 1 Eepealed by act of Feb. 24, 1919, sec. 1400 ; see p. 632. 
 
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848 
 
 APPENDIX, 
 
 hereby imposed upon the transfer of the net estate of every decedent 
 dying after the passage of this Act, whether a resident or nonresident 
 of the United States: 
 
 " One and one-half per centum of the amount of such net estate 
 not in excess of $60,000; 
 
 "Three per centum of the amount by which such net estate ex- 
 ceeds $50,000 and does not exceed $150,000; 
 
 " Four and one-half per centum of the amount by which such net 
 estate exceeds $150,000 and does not exceed $250,000 ; 
 
 " Six per centum of the amount by which such net estate exceeds 
 $250,000 and does not exceed $450,000; 
 
 " Seven and one-half per centum of the amount by which such net 
 estate exceeds $-150,000 and does not exceed $1,000,000 ; 
 
 " Nine per centum of the amount by which such net estate exceeds 
 $1,000,000 and does not exceed $2,000,000; 
 
 "Ten and one-half. per centum of the amount by which such net 
 estate exceeds $2,000,000 and does not exceed $3,000,000 ; 
 
 "Twelve per centum of the amount by which such net estate 
 exceeds $3,000,000 and does not exceed $4,000,000 ; 
 
 " Thirteen and one-half per centum of the amount by which such 
 net estate exceeds $4,000,000 and does not exceed $5,000,000 ; and 
 
 " Fifteen per centtim of the amount by which such net estate 
 exceeds $5,000,000." 
 
 Prior transfers at former rates. 
 
 Sec. 301. That the tax on the transfer of the net estate of decedents 
 dying between September eighth, nineteen hundred and sixteen, and 
 the passage of this Act shall be computed at the rates originally pre- 
 scribed in the Act approved September eighth, nineteen hundred and 
 sixteen. 
 
 TITLE IV.— MISCELLANEOUS. 
 
 Sworn returns of dividends; names of shareholders. 
 
 Sec. 402.1 rp^at Title I of the Act entitled "An Act to increase the 
 revenue, and for other purposes,'' approved September eighth, nine- 
 teen hundred and sixteen, be amended by adding to Part III a new 
 tection, as follows: 
 
 " Sec. 26. Every corporation, joint-stock company or association, or 
 insurance company subject to the tax herein imposed, when required 
 by the Commissioner of Internal Revenue, shall render a correct 
 return, duly verified under oath, of its payments of dividends, whether 
 made in cash or its equivalent or in stock, including the names and 
 addresses of stockholders and the number of shares owned by each, 
 in such fonn and manner as may be prescribed by the Commissioner 
 of Intenal Eevenue, with the approval of the Secretary of the 
 "JYeasury." 
 
 1 Amended by act o£ Oct. 3, 1917, sec. 1210; see p. 899. 
 
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APPENDIX. 
 
 849 
 
 Chapter 12. 
 
 AN ACT To provide revenue to defrny war expenses, and for other purposes. 
 Approved October 3, 1917 (40 Stat., 300). 
 
 Title I — War income tax. 
 
 Additional normal tax. 
 
 Additional tax for 1917 and sub- 
 sequent years. 
 
 Computation, levy, assessmem, 
 collection, and payment ; ex- 
 emptions ; returns ; withholding 
 at source. 
 
 Additional tax on corporations, 
 etc. ; computation, etc. 
 
 Porto Rico and Philippine Is- 
 lands. 
 
 Alaska railroads. (Act July 18, 
 1914.) 
 Title II — War excess-profits tax. 
 
 Definitions. 
 
 Hate of tax ; exemptions. 
 
 Foreign corporations or nonresi- 
 dent aliens. 
 
 Deductions. 
 
 Deduction if not in business dur- 
 ing prewar period. 
 
 Corporations having no net in- 
 come during prewar period or 
 percentage very low ; claim for 
 abatement. 
 
 Ascertaining net income. 
 
 " Invested capital " defined. 
 
 Reorganization, consolidation, or 
 change of ownership. 
 
 No invested capital or only nomi- 
 nal capital. 
 
 Deduction when unable to deter- 
 mine invested capital. 
 
 Returns. 
 
 General provisions of law appli- 
 cable. 
 
 Regulations. 
 
 Repeal and amendment of former 
 acts. 
 Title III — War tax on beverages. 
 
 Distilled spirits when used as 
 beverage or as ingredient. 
 
 Importation of distilled spirits. 
 
 Removal of spirits from distil- 
 leries. 
 
 Stock of distilled spirits on hand 
 intended for sale. 
 
 Additional tax on rectified spirits. 
 
 Discontinuance of certain stamps 
 authorized. ■ 
 
 Jleters, tanks, pipes, and other ap- 
 paratus at distilleries, etc. 
 
 Additional tax on fermented liq- 
 uors. 
 
 Conveyance of taxable fermented 
 liquors to be used as distilling 
 material. 
 
 Additional tax on wine, including 
 vermuth. 
 
 140184°— 20 54 Digitized by 
 
 Title III — War tax on beverages- 
 Continued. 
 
 AVines in excess of 25 gallons on 
 hand for sale. 
 
 Additional tax on grape brandy 
 or wine spirits. 
 
 Additional tax on grape brandy or 
 wine spirits for fortifying pur- 
 poses. 
 
 Sirups or extracts, etc., contain- 
 ing less than one-half of 1 per 
 cent alcohol ; natural mineral 
 waters. 
 
 Returns, monthly. 
 
 Carbonic-acid gas in drums or 
 (ither containers. 
 Title IV — War tax on cigars, tobacco, 
 and manufactures thereof. 
 
 Additional tax on cigars and ciga- 
 rettes. 
 
 Additional tax On tobacco and 
 snuff; additional packages. 
 
 Packages of cigarettes, tobacco, 
 and snuff. 
 
 Tax on tobacco, snuff, cigars, or 
 cigarettes removed prior to pas- 
 sage of act. 
 
 Cigarette paper and tubes. 
 Title V — War tax on facilities fur- 
 nished by public utilities, and 
 insurance. 
 
 Amounts paid for transportation 
 by rail or water. 
 
 By whom tax shall be paid ; ex- 
 exemption. 
 
 Exemption. 
 
 Collection of tax ; returns. 
 
 Insurance policies, issuance of; 
 exemption. 
 
 Returns, monthly, in duplicate. 
 Title A^I — War excise taxes. 
 
 Articles subject to tax. 
 
 Returns, monthly. 
 
 Articles on hand at passage of the 
 act. 
 
 Boats and yachts. 
 Title VII — War tax on admissions and 
 dues. 
 
 Exemption and definition. 
 
 Membership fees or dues; exemp- 
 tions. 
 
 How and from whom tax col- 
 lected. 
 Title VIII — War stamp taxes. 
 
 On and after December 1, 1917. 
 
 Exemptions. 
 
 Penalty for violation. 
 
 Mutilation, fraudulent use of, re- 
 moval, unlawful possession of 
 stamps ; penalty. 
 
 IVIicrosoft® 
 
850 
 
 APPENDIX. 
 
 Title VIII— War stamp taxes— Con- 
 tinued. 
 
 Cancellation of stamps. 
 
 Stamps, preparation ; contract ; 
 extension of laws relative to as- 
 sessment and collection of tax. 
 
 Postmaster General to be fur- 
 nislied stamps. 
 
 Assistant treasurers to be fur- 
 nislied stamps; Scliedule A. 
 Title IX— War estate tax. 
 
 Additional tax. 
 
 Exemption during war. 
 
 Acceptance of Liberty bonds in 
 payment of tax. (Act of April 
 4, 19ia) 
 Title X — Administrative provisions. 
 
 West Indian Islands acquired 
 from Denmark, articles to and 
 from. 
 
 Extension of administrative pro- 
 ^■isions of law. 
 
 Returns where additional taxes 
 are imposed ; payment extended. 
 
 Collection of tax; applicability of 
 provisions. 
 
 Title X — Administrative provisions — 
 (jontinued. 
 
 Penalty for failure to make re- 
 turn or making false or fraudu- 
 lent return. 
 
 Rules and regulations. 
 
 Use of stamps on Land autliorized. 
 
 Prior contracts; definition of 
 " dealer." 
 
 Fractions of a cent. 
 
 Advance payments and credits. 
 
 Certificates of indebtedness ; un- 
 certified checks. 
 Title XII — Income-tax amendments. 
 
 Act of September 8, 1916 (sees. 2, 
 4-10, 12, 13, 18, 26). 
 
 Act of September 3, 1916 (sees. 
 27-32 added). 
 
 Releasing amount of tax retained 
 by withliolding agent 
 Title XIII — General provisions. 
 
 Effect of partial invalidity. 
 
 Repeal of Title I, act of March 3, 
 1917. 
 
 Date efEective. 
 
 Citation of act. 
 
 TITLE I.— WAR INCOME TAX. 
 
 iiddltlonal nernuil tax. 
 
 Section 1. That in addition to the normal tax imposed by subdi- 
 vision (a) of section one of the Act entitled " An Act to increase the 
 revenue, and for other purposes," approved September eighth, nine- 
 teen hundred and sixteen, there shall be levied, assessed, collected, 
 and paid a like normal tax of two per centum upon the income of 
 every individual, a citizen or resident of the United States, received 
 in the calendar year nineteen hundred and seventeen and every 
 calendar year thereafter. 
 
 Proceeds of accident insurance policy received on account of personal 
 injuries are not taxable income, nor is amount received by individual 
 as result of suit or compromise for personal injuries sustained through 
 accident. (T. D. 2747.) 
 
 Money received by defendant through embezzling moneys delivered to 
 him to be paid as insurance premiums was not subject to taxation. (Ran 
 V. United States, 260 Fed., 131. ) 
 
 Additional tax for 1917 and snteequent years. 
 
 Sec. 2. That in addition to the additional tax imposed by subdi- 
 vision (b) of section one of such Act of September eighth, nineteen 
 hundred and sixteen, there shall be levied, assessed, collected, and 
 paid a like additional tax upon the income of every individual 
 received in the calendar year nineteen hundred and seventeen and 
 every calendar year thereafter, as follows : 
 
 One per centum per annum upon the amount by which the total 
 net income exceeds $5,000 and does not exceed $7,500; 
 
 Two per centum per annum upon the amount by. which the total 
 net income exceeds $7,600 and does not exceed $10,000 ; 
 
 Three per centimi per annum upon the amount by which the total 
 net income exceeds $10,000 and does not exceed $12,500 ; 
 
 Digitized by Microsoft® 
 
APPENDIX. 851 
 
 Four per centum per annum upon the amount by which the total 
 net income exceeds $12,500 and does not exceed $15,000 ; 
 
 Five per centum per annum upon the amount by which the total 
 net income exceeds $15,000 and does not exceed $20,000 ; 
 
 Seven per centum per annum upon the amount bv which the total 
 net income exceeds $20,000 and does not exceed $40,000 ; 
 
 Ten per centum per annum upon the amount by which the total 
 net income exceeds $40,000 and does not exceed $60,000 ; 
 
 Fourteen per centum per annum upon the amount by Avhich the 
 total net income exceeds $60,000 and does not exceed $80,000 ; 
 
 Eighteen per centum per annum upon the amount by which the 
 total net income exceeds $80,000 and does not exceed $100,000; 
 
 Twenty -two per centum per annum upon the amount by which the 
 total net income exceeds $100,000 and does not exceed $150,000 ; 
 
 Twenty-five per centum per annum upon the amount by which the 
 total net income exceeds $150,000 and does not exceed $200,000 ; 
 
 Thirty per centum per annum upon the amount by which the total 
 net income exceeds $200,000 and does not exceed $250,000 ; 
 
 Thirty-four per centum per annum upon the amount by which the 
 total net income exceeds $250,000 and does not exceed $300,000 ; 
 
 Thirty-seven per centum per annum upon the amount by which the 
 total net income exceeds $300,000 and does not exceed $500,000 ; 
 
 Forty per centum per annum upon the amount by which the total 
 net income exceeds $500,000 and does not exceed $750,000. 
 
 Forty-five pier centum per annum upon the amount by which the 
 total net income exceeds $750,000 and does not exceed $1,000,000. 
 
 Fifty per centum per annum upon the amount by which the total 
 net income exceeds $1,000,000. 
 
 Computation, levy, asBessment, collection, and payment; exemptions; returns; wltbholdlng at 
 
 gonrce. 
 
 Sec. 3. That the taxes imposed by sections one and two of this 
 Act shall be computed, levied, assessed, collected, and paid upon the 
 same basis and in the same manner as the similar taxes imposed by 
 section one of such Act of September eighth, nineteen hundred and 
 sixteen, except that in the case of the tax imposed by section one of 
 this Act (a) the exemptions of $3,000 and $4,000 provided in section 
 seven of such Act of September eighth, nineteen hundred and sixteen, 
 as amended by this Act, shall be, respectively, $1,000 and $2,000, and 
 (b) the returns required under subdivisions (b) and (c) of section 
 eight of such Act as amended by this Act shall be required in the case 
 of net incomes of $1,000 or over, in the case of immarried persons, 
 and $2,000 or over in the case of married persons, instead of $3,000 
 or over, as therein provided, and (c) the provisions of subdivision (c) 
 of section nine of such Act, as amended by this Act, requiring the 
 normal tax of individuals on income derived from interest to be 
 deducted and withheld at the source of the income shall not apply to 
 the new two per centum normal tax prescribed in section one of this 
 Act until on and after January first, nineteen hundred and eighteen, 
 and thereafter only one two per centum normal tax shall be deducted 
 and withheld at the source under the provisions of such subdivision 
 (c), and any further normal tax for which the recipient of such in- 
 
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852 APPENDIX. 
 
 come is liable under this Act or such 'Act of September eighth, nine- 
 teen hundred and sixteen, as amended by this Act, shall be paid by 
 such recipient. 
 
 Returns made upon basis of cost or market value, whichever is lower, 
 accepted. , (T. Ds. 2609, 2649, 2740, 2744.) 
 
 Interest on bank deposits paid to nonresident alien individuals held 
 subject to withholding provisions of act. (T. D. 2652.) 
 
 Partnerships or individuals paying oifTicers or business employees sal- 
 aries and wages during war period in which in service of United States 
 may deduct amount so paid as expenses. (T. D. 2660.) 
 
 Instructions governing preparation of Income tax returns by farmers. 
 (T. D. 2665.) 
 
 Additional tax on corporations, etc.; computation, etc. 
 
 Sec. 4. That in addition to the tax imposed by subdivision (a) of 
 section ten of such Act of September eighth, nineteen hundred and 
 sixteen, as amended by this Act, there shall be levied, assessed, 
 collected, and paid a like tax of four per centum upon the income 
 leceived in the calendar year nineteen hundred and seventeen and 
 every calendar year thereafter, by every corporation, joint-stock 
 company or association, or insurance company, svibject to the tax 
 imposed by that subdivision of that section, except that if it has 
 fixed its own fiscal year, the tax imposed by this section for the 
 fiscal year ending during the calendar year nineteen hundred and 
 seventeen shall be levied, assessed, collected, and paid only on that 
 proportion of its income for such fiscal year which the period between 
 January first, nineteen hundred and seventeen, and the end of such 
 fiscal year bears to the whole of such fiscal year. 
 
 The tax imposed by this section shall be computed, levied, assessed, 
 collected, and paid upon the same incomes and in the same manner 
 as the tax imposed by subdivision (a) of section ten of such Act of 
 September eighth, nineteen hundred and sixteen, as amended by 
 this Act, except that for the purpose of the tax imposed by this 
 section the income embraced in a return of a corporation, joint-stock 
 company or association, or insurance company, shall be credited 
 with the amount received as dividends upon the stock or from the 
 net earnings of any other corporation, joint-stock company or asso- 
 ciation, or insurance company, which is taxable upon its net income 
 as provided in this title. 
 
 Corporations paying officers or business employees salaries and wages 
 during war period in which in service of United States may deduct 
 amount so paid as expenses. (T. D. 2660.) 
 
 Instructions governing preparation of income tax return by farmers. 
 (T. D. 2665.) 
 
 Proof necessary to be filed by religious, charitable, scientific, etc., or- 
 ganizations to establish fact that they are exempt from filing returns or 
 paying income tax. (T. D. 2693.) 
 
 Corporation may distribute earnings for an accounting period ratably 
 over the period for the purpose of ascertaining earnings to date of divi- 
 dend payment within such period. (T. D. 2678.) 
 
 Method to be followed in crediting overpayment of 2 per cent income 
 tax by corporation filing supplementary return for fiscal year ended on 
 last day of .some montli during year 1917, or final return for period ended 
 during such year. (T. D. 2663.) 
 
 Article 62 of Ilegulations relating to limited partnerships, revised, 
 (T. D. 2711.) 
 
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APPENDIX. 853 
 
 Farto Bico and Flilllppine Islande. 
 
 Sec. 5. That the provisions of this title shall not extend to Porto 
 Eico or the Philippine Islands, and the Porto Eican or Philippine 
 Legislature shall have power by due enactment to amend, alter, 
 inodify, or repeal the income tax, laws in force in Porto Eico or the 
 Philippine Islands, respective!}'. 
 
 Alaska railroads. 
 
 AN ACT To levy and collect an income tax on railroads in Alaska, and for 
 other purposes. Approved Julj' 18, 1914 (38 Stat., 517). 
 
 Be it enacted^ etc., That in addition to the normal income tax of 
 one per centum on net income there shall be levied and collected 
 one per centum on the gross annual income of all railroad corpora- 
 tions doing business in Alaska, on business done in Alaska, which 
 shall be computed and collected in the manner provided in the act 
 of Congress, approved October third, nineteen hundred and thir- 
 teen, entitled "An act to reduce tariff duties and to provide revenue 
 for the Government, and for other purposes," the proceeds of which 
 tax when collected shall be paid to the treasurer of Alaska and be 
 applicable to general Territorial purposes. So much of the pro- 
 visions of the act of Congress, approved March third, eighteen hun- 
 dred and ninety-nine, entitled "An act to define and punish crimes 
 in the District of Alaska, and to provide a code of criminal pro- 
 cedure for said district," or acts amendatory thereof as impose a 
 license tax of $100 per mile per annum on railroads operated in 
 Alaska is hereby repealed, and all penalties for nonpayment thereof 
 are hereby remitted. 
 
 TITLE II.— WAE EXCESS PEOFITS TAX. 
 
 Sec. 200. That when used in this title — 
 
 The term " corporation " includes joint-stock companies or asso- 
 ciations and insurance companies; 
 
 The term " domestic " means created under the law of the United 
 States, or of any State, Territory, or District thereof, and the term 
 " foreign " means created under the law of any other possession of 
 the United States or of any foreign country or government. 
 
 The term " United States " means only the States, the Territories 
 of Alaska and Hawaii, and the District of Columbia ; 
 
 The term " taxable year " means the twelve months ending Decem- 
 ber thirty-first, excepting in the case of a corporation or partnership 
 which has fixed its own fiscal year, in which case it means such fiscal 
 year. The first taxable year shall be the year ending December 
 thirty-fi^rst, nineteen hundred and seventeen, except that in the case 
 of a corporation or partnership which has fixed its own fiscal year, it 
 shall be the fiscal year ending during the calendar year nineteen 
 hundred and seventeen. If a corporation or partnership, prior to 
 March first, nineteen hundred and eighteeUj makes a return covering 
 its own fiscal year, and includes therein the income received during 
 
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854 APPENDIX. 
 
 that part of the fiscal year falling within the calendar year nineteen 
 hundred and sixteen, the tax for such taxable year shall be that pro- 
 portion of the tax computed upon the net income during such full 
 fiscal year which the time from January first, nineteen hundred and 
 seventeen, to the end of such fiscal year bears to the full fiscal year; 
 and 
 
 The term " prewar period " means the calendar years nineteen 
 hundred and eleven, nineteen hundred and twelve, and nineteen 
 hundred and thirteen, or, if a corporation or partnership was not in 
 existence or an individual was not engaged in a trade or business 
 during the whole of such period, then as many of such years during 
 the whole of which the corporation or partnership was in existence 
 or the individual was engaged in the trade or business. 
 
 The terms " trade " and " business " include professions and occu- 
 pations. 
 
 The term " net income " means in the case of a foreign corporation 
 or partnership or a nonresident alien individual, the net income re- 
 ceived from sources within the United States. 
 
 Revision of article 2 of Regulations regarding limited partnersliips. 
 <T. D. 2711.) 
 
 Bat<) of tax; exemptions. 
 
 Sec. 201. That in addition to the taxes under existing law and 
 under this act there shall be levied, assessed, collected, and paid for 
 each taxable year upon the income of every corporation, partnership, 
 or individual, a tax (hereinafter in this title referred to as the tax) 
 equal to the following percentages of the net income : 
 
 Twenty per centum of the amount of the net income in excess of the 
 deduction (determined as hereinafter provided) and not in excess of 
 fifteen per centum of the invested capital for the taxable year; 
 
 Twenty-five per centum of the amount of the net income in excess 
 of fifteen per centum and not in excess of twenty per centum of such 
 capital ; 
 
 Thirty-five per centum of the amount of the net income in excess 
 of twenty per centum and not in excess of twenty -five per centum of 
 such capital; 
 
 Forty-five per centum of the amount of the net income in excess 
 of twenty-five per centum and not in excess of thirty-three per 
 centum of such capital; and 
 
 Sixty per centum of the amount of the net income in excess of 
 thirty-three per centum of such capital. 
 
 For the purpose of this title every corporation or partnership not 
 exempt under the provisions of this section shall be deemed' to be 
 engaged in business, and all the trades and businesses in which it is 
 engaged shall be treated as a single trade or business, and all its in- 
 come from whatever source derived shall be deemed to be received 
 from such trade or business. 
 
 This title shall apply to all trades or businesses of whatever de- 
 scription, whether continuously carried on or not, except — 
 
 (a) In the case of officers and employees under the United States, 
 or any State, Territory, or the District of Columbia, or any local sub- 
 division thereof, the compensation or fees received by them as such 
 officers or employees; 
 
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APPENDIX. 855 
 
 (b) Corporations exempt from tax under the provisions of section 
 eleyen of Title I of such Act of September eighth, nineteen hundred 
 and sixteen, as amended by this Act, and partnerships and individ- 
 uals carrying on or doing the same business, or coming within the 
 same description; and 
 
 (c) Incomes derived from the business of life, health, and accident 
 insurance combined in one policy issued on the weekly premium pay- 
 ment plan. 
 
 Treatment under this section of deductions authorized bv sections 203, 
 204, 205, or 210. (T. D. 2602.) 
 
 Application of Articles 18, 23, and 2-1 of Hegulations Ko. 41. (T. D. 
 2683.) 
 
 Foreign corporations or nonresident iiliens. 
 
 Sec. 202. That the tax shall not be imiDOsed in the case of the trade 
 or business of a foreign corporation or partnership or a nonresident 
 alien individual, the net income of which trade or business during 
 the taxable year is less than $3,000. 
 
 Dedoction!!. 
 
 Sec. 203. That for the purposes of this title the deduction shall be 
 as follows, except as otherwise in this title provided — 
 
 (a) In the case of a domestic corporation, the sum of (1) an 
 amount equal to the same percentage of the invested capital for the 
 taxable year which the average amount of the annual net income of 
 the trade or business during the prewar period was of the invested 
 capital for the prewar period (but not less than seven or more than 
 nine per centum of the invested capital for the taxable year), and 
 (2) $3,000; 
 
 (b) In the case of a domestic partnership or of a citizen or resi- 
 dent of the United States, the sum of (1) an amount equal to the 
 same percentage of the invested capital for the taxable year which 
 the average amount of the annual net income of the trade or busi- 
 ness during the prewar period was of the invested capital for the 
 prewar period (but not less than seven or more than nine per centum 
 of the invested capital for the taxable year), and (2) $6,000; 
 
 (c) In the case of a foreign corporation or partnership or of a 
 nonresident alien individual, an amount ascertained in the same 
 manner as provided in subdivisions (a) and (b) without any exemp- 
 tion of $3,000 or $6,000. 
 
 (d) If the Secretary of the Treasury is unable satisfactorily to 
 determine the average amount of the annual net income of the trade 
 or business during the prewar period, the deduction shall be deter- 
 mined in the same manner as provided in section two hundred and 
 five. 
 
 When return of information as to Invested capital and net Income for 
 prewar period will not be required stated. (T. D. 2614.) 
 
 Application of articles 18, 23, and 24 of Regulations Xo. 41. (T. D. 
 2683.) 
 
 DoduettoD Ef not In business during preiT»r period. 
 
 Sec. 204. That if a corporation or partnership was not in existence, 
 or an individual was not engaged in the trade or business, during the 
 whole of any one calendar year during the prewar period, the deduc- 
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856 
 
 APPENDIX. 
 
 tion shall be an amount equal to eiglit per centum of the invested 
 capital for the taxable year plus in the case of a domestic corporation 
 $3,000, and in the case of a domestic partnership or a citizen or 
 resident of the United States $6,000. 
 
 A trade or business carried on by a corporation, partnership, or 
 individual, although formally organized or reorganized on or after 
 January second, nineteen hundred and thii'teen, which is substan- 
 tially a continuation of a trade or business carried on prior to that 
 date, shall, for the purposes of this title, be deemed to have been in 
 existence prior to that date, and the net income and invested capital 
 of its predecessor prior to that date shall be deemed to have been its 
 not income and invested capital. 
 
 CorporaUans having no net income during prewar period or percentage very loTf; claim for 
 
 abatement. 
 
 Seo. 205. (a) That if the Secretary of the Treasury, upon complaint 
 finds either (1) that during the prewar period a domestic corporation 
 or partnership, or a citizen or resident of the United States, had no 
 net income from the trade or business, or (2) that during the prewar 
 period the percentage, which the net income was of the invested 
 capital, was low as compared with the percentage, which the net 
 income during such period of representative corporations, paii;ner- 
 ships, and individuals, engaged in a like or similar trade or business, 
 was of their invested capital, then the deduction shall be the sum 
 of (1) an amount equal to the same percentage of its invested capital 
 for the taxable j'ear which the average deduction (determined in the 
 same manner as provided in section two hundred and three, without 
 including the $3,000 or $6,000 therein referred to) for such year of 
 i'epresentative corporations, partnerships, or individuals, engaged in 
 a like or similar trade or business, is of their average invested capital 
 for such year plus (2) in the case of a domestic corporation $3,000, 
 and in the case of a domestic partnership or a citizen or resident of 
 the United States $6,000. 
 
 The percentage which the net income was of the invested capital 
 in each trade or business shall be determined by the Commissioner of 
 Internal Revenue, in accordance with regulations prescribed by him, 
 with the approval of the Secretary of the Treasury. In the case of a 
 corporation or partnership which has fixed its own fiscal year, the 
 percentage determined by the calendar year ending during such fiscal 
 year shall be used. 
 
 Application of articles 18, 23, and 24 of Regulations No. 41. (T. D. 
 2083.) 
 
 (b) The tax shall be assessed upon the basis of the deduction deter- 
 mined as provided in section two hundred and three, but the taxpayer 
 claiming the benefit of this section may at the time of making the 
 return file a claim for abatement of the amount by which the tax so 
 assessed exceeds a tax computed itpon the basis of the deduction 
 determined as provided in this section. In such event, collection of 
 the part of the tax covered by such claim for abatement shall not be 
 made until the claim is decided, but if in the judgment of the Com- 
 missioner of Internal Revenue, the interests of the United States 
 would be jeopardized thereby he way reguire^the claimant to give 
 a bond in such amount anff'SW'ffi'lSffi^^fiMfffi^s the commissioner 
 
APPENDIX. 857 
 
 may think "wise to safeguard sucli interests, conditioned for the pay- 
 ment of any tax found to be due, with the interest thereon, and if 
 such bond, satisfactory to the commissioner, is not given within such 
 time as he prescribes, the full amount of tax assessed shall be col- 
 lected and the amount overpaid, if any, shall upon final decision of 
 the application be refunded as a tax erroneously or illegally collected. 
 
 Asccitalnlng net Income. 
 
 Sec. 206. That for the purposes of this title the net income of a 
 corporation shall be ascertained and returned (a) for the calendar 
 years nineteen hundred and eleven and nineteen hundred and twelve 
 upon the same basis and in the same manner as provided in section 
 thirty-eight of the Act entitled " An Act to provide revenue, equalize 
 duties, and encourage the industries of the United States, and for 
 other purposes," approved August fifth, nineteen hundred and nine, 
 except that income taxes paid by it within the year imposed by the 
 authority of the United States bhall be included ; (b) for the calendar 
 year nineteen hundred and thirteen upon the same basis and in the 
 same manner as provided in section II of the Act entitled " An Act 
 to reduce tariff duties and to provide revenue for the Government, 
 and for other purposes," approved October third, nineteen hundred 
 and thirteen, except that income taxes paid by it within the year 
 imposed by the authority of the United States shall be included, and 
 except that the amounts received by it as dividends upon the stock 
 or from the net earnings of other corporations, joint-stock companies 
 or associations, or insurance companies, subject to the tax imposed 
 by section II of such Act of October third, nineteen hundred and 
 thirteen, shall be deducted; and (c) for the taxable year upon the 
 same basis and in the same manner as provided in Title I of the Act 
 entitled " An Act to increase the revenue, and for other purposes," 
 approved September eighth, nineteen hundred and sixteen, as 
 amended by this- Act, except that the amounts received by it as 
 dividends upon the stock or from the net earnings of other corpora- 
 tions, joint-stock companies or associations, or insurance companies, 
 subject to the tax imposed by Title I of such Act of September 
 eighth, nineteen hundred and sixteen, shall be deducted. 
 
 The net income of a partnership or individual shall be ascertained 
 and returned for the calendar years nineteen hundred and eleven, 
 nineteen hundred and twelve, and nineteen hundred and thirteen, 
 and for the taxable year, upon the same basis and in the same manner 
 as provided in Title I of such Act of September eighth, nineteen hun- 
 dred and sixteen, as aanended by this Act, except that the credit 
 allowed by subdivision (b) of section five of such Act shall be de- 
 ducted. There shall be allowed (a) in the case of a domestic part- 
 nership the same deductions as allowed to individuals in subdivision 
 (a) of section five of such Act of September eighth, nineteen hundred 
 and sixteen, as amended by this Act; and (b) in the case of a foreign 
 partnership the same deductions as allowed to individuals in siib- 
 division (a) of section six of such Act as amended by this Act. 
 
 Corporations paying officers and business employees salaries and wages 
 during war period in wliich tliey are in service of United States may 
 deduct amount paid as expenses of doing business. (T. D. 2660.) 
 
 Returns made upon basis of cost or market value, whicliever is lower, 
 accepted. (T. Ds./3^^/2 
 
858 APPENDIX. 
 
 Computation of tax for period of less than full year ; articles 10, 11, 
 12, and 20 of Rejjiilations No. 41 supplemented. (T. D. 2689.) 
 
 Salary allowances in case of partnerships or individuals engaged in 
 trade or business. (T. D. 2611.) 
 
 Individual partners nontaxable as to shares in partnership profits, but 
 taxable as to salaries received J'rom partnership. (T. D. 2612.) 
 
 Deduction allov^ed to partnerships for interest on bona fide loans by 
 partners. (T. D. 2613.) 
 
 " Invested capital " ilcfincd. 
 
 Sec, 207. That as used in this title, the term " invested capital " 
 for any year means the average invested capital for the year, as de- 
 fined and limited in this title, averaged monthly. 
 
 As used in this title " invested capital " does not include stocks, 
 bonds (other than obligations of the United States) , or other assets, 
 the income from which is not subject to the tax imposed by this title 
 nor money or other property borrowed, and means, subject to the 
 above limitations : 
 
 (a) In the case of a corporation or partnership: (1) Actual cash 
 paid in, (2 ) the actual cash value of tangible property paid in other 
 than cash, for stock or shares in such corporation or partnership, at 
 the time of such payment (but in case such tangible property was 
 paid in prior to January first, nineteen hundred and. fourteen, the 
 actual cash value of such property as of January first, nineteen hun- 
 dred and fourteen, but in no case to exceed the par value of the 
 original stock or shares specifically issued therefor) , and (3) paid in 
 or earned surplus and undivided profits used or employed in the busi- 
 ness, exclusive of undivided profits earned during the taxable year : 
 Provided^ That (a) the actual cash value of patents and copyrights 
 paid in for stock or shares in such corporation or partnership, at the 
 time of such payment, shall be included as invested capital, but not 
 to exceed the par value of such stock or shares at the time of such 
 payment, and (b) the good will, trade-marks, trade brands, the 
 franchise of a corporation or partnership, or other intangible prop- 
 erty, shall be included as invested capital if the corporation or part- 
 nership made payment bona fide therefor specifically as such in cash 
 or tangible property, the value of such good will, trade-mark, trade 
 brand, franchise, or intangible property, not to exceed the actual 
 cash or actual cash value of the tangible property paid therefor at 
 the time of such payment ; but good will, trade-marks, trade brands, 
 franchise of a corporation or partnership, or other intangible prop- 
 erty, bona fide purchased, prior to March third, nineteen hundred 
 and seventeen, for and with interests or shares in a partnership or for 
 and with shares in the capital stock of a corporation (issued prior to 
 March third, nineteen hundred and seventeen), in an amount not to 
 exceed, on March third, nineteen hundred and seventeen, twenty 
 per centum of the total interests or shares in the partnership or of 
 the total shares of the capital stock of the corporation, shall be in- 
 cluded in invested capital at a value not to exceed the actual cash 
 value at the time of such purchase, and in case of issue of stock 
 therefor not to exceed the par value of such stock ; 
 
 Construction of terms " tangible property " and " intangible property." 
 (T. D. 2610.) 
 
 (b) "In the case of an individual, (1) actual cash paid into the 
 trade or business, and£](/^)^;|^^ &ytMfc/<2^JV?®a'lue of tangible property 
 
APPENDIX. 859 
 
 paid into the trade or business, other tlian cash, at the time of such 
 payment (but in case such tangible property was paid in prior to 
 January first, nineteen hundred and fourteen, the actual cash value 
 of such property as of January first, nineteen hundred and four- 
 teen), and (3) the actual cash value of patents, copyrights, good will, 
 trade-marks, trade brands, franchises, or other intangible property, 
 paid into the trade or business, at the time of such payment, if pay- 
 ment was made therefor specifically as such in cash or tangible prop- 
 erty, not to exceed the actual cash or actual cash value of the tangible 
 property bona fide paid therefor at the time of such payment. | 
 
 In the case of a foreign corporation or partnership or of a non- 
 resident alien individual the term "invested capital" means that pro- 
 portion of the entire invested capital, as defined and limited in this 
 title, which the net income from sources within the United States 
 bears to the entire net income. 
 
 For purposes of invested capital, excess profits tax deemed to liave 
 been paid out of net income for taxable year for which tax is levied. 
 (T. D. 2791.) 
 
 Basis of computing value of property acquired in ease of acquisition 
 of stock of subsidiary company. (T. Ds. 2662, 2901.) 
 
 Beorganizatlon, consolidatiou, or change of oirnershlp. 
 
 Sec. 208. That in case of the reorganization, consolidation or 
 change of ownership of a trade or business after March third, nine- 
 teen hundred and seventeen, if an interest or control in such trade or 
 business of fifty per centum or more remains in control of the same 
 persons, corporations, associations, partnerships, or any of them, then 
 in ascertaining the invested capital of the trade or business no asset 
 transferred or received from the prior trade or business shall be al- 
 lowed a greater value than would have been allowed under this title 
 in computing the invested capital of such prior trade or business if 
 such asset had not been so transferred or received, unless such asset 
 was paid for specifically as such, in cash or tangible property, and 
 then not to exceed the actual cash or actual cash value of the tangible 
 property paid therefor at the time of such payment. 
 
 No Inrcstcd capital or only nominal capital. 
 
 Sec. 209. That in the case of a trade or business having no in- 
 vested capital or not more than a nominal capital there shall be 
 levied, assessed, collected and paid, in addition to the taxes under 
 existing law and under this Actj in lieu of the tax imposed by section 
 two hundred and one, a tax equivalent to eight per centum of the net 
 income of such trade or business in excess of the following deduc- 
 tions : In the case of a domestic corporation $3,000, and in the case 
 of a domestic partnership or a citizen or resident of the United 
 States $6,000 ; in the case of all other trades or business, no deduction. 
 
 Keturn of information as to invested capital and net income for prewar 
 period not required where trade or business is taxable at 8 per cent rate 
 under this section. (T. D. 2614.) 
 
 Dednctlon when nnahle to determine Invested capital. 
 
 Sec. 210. That if the Secretary of the Treasury is unable in any 
 case satisfactorily to determine the invested capital, the amount of 
 the deduction shall be the sum of (1) an amount equal to the same 
 Digitized by fVlicrosoft® 
 
860 APPENDIX. 
 
 proportion of the net income of the trade or business received during 
 the taxable year as the proportion which the average deduction 
 (determined in the same manner as provided in section two hundred 
 and three, without including the $3,000 or $6,000 therein referred to) 
 for the same calendar year of representative corporations, partner- 
 ships, and individuals, engaged in a like or similar trade or business, 
 bears to the total net income of the trade or business received by 
 such corporations, partnerships, and individuals, plus (2) in the case 
 of a domestic corporation $3,000, and in the case of a domestic 
 partnership or a citizen or resident of the United States $6,000. 
 
 For the purpose of this section the proportion between the deduc- 
 tion and the net income in each trade or business shall be determined 
 by the Commissioner of Internal Revenue in accordance with regula- 
 tions prescribed by him, with the approval of the Secretary of the 
 Treasury. In the case of a corporation or partnership which has 
 fixed its own fiscal year, the proportion determined for the calendar 
 year ending during such fiscal year shall be used. 
 
 Article 18 of Regulations No. 41 applies only to cases in which the 
 Secretary of the Treasury is unable satisfactorily to determine invested 
 capital for taxable year. (T. D. 2683.) 
 
 Bcturns. 
 
 Sec. 211. That every foreign partnership having a net income of 
 $3,000 or more for the taxable jear, and every domestic partnership 
 having a net income of $6,000 or more for the taxable year, shall 
 render a correct return of the income of the trade or business for the 
 taxable year, setting forth specifically the gross income for such 
 year, and the deductions allowed in this title. Such returns shall be 
 rendered at the same time and in the same manner as is prescribed 
 for income-tax returns under Title I of such Act of September eighth, 
 nineteen hundred and sixteen, as amended by this Act. 
 
 Amended returns accepted so that taxable year of affiliated corpora- 
 tions will coincide. (T. D. 2805.) 
 
 General proTisIons of laiv applicable. 
 
 Sec. 212. That all administrative, special, and general provisions of 
 law, including the laws in relation to the assessment, remission, col- 
 lection, and refund of internal-revenue taxes not heretofore specifi- 
 cally repealed, and not inconsistent with the provisions of this title 
 are hereby extended and made applicable to all the provisions of this 
 title and to the tax herein imposed, and all provisions of Title I of 
 such Act of September eighth, nineteen hundred and sixteen, as 
 amended by this Act, relating to returns and payment of the tax 
 therein imposed, including penalties, are hereby made applicable to 
 the tax imposed by this title. 
 
 Five per cent penalty and interest where taxpayer absent in foreign 
 country or traveling abroad, or absent from home or place of business in 
 military or other service of country. (T. D. 2679.) 
 
 Regulations governing inspection of returns. (T. D. 2961.) 
 
 Furnishing copies of returns. (T. D. 2962.) 
 
 Bcsulztions. 
 
 Sec. 213. That the Commissioner of Internal Revenue, with the 
 approval of the Secretary of the Treasury, shall make all necessary 
 regulations for carryOig/feeC/ i^/l^cei^gre^ of this title, and may 
 
APPENDIX. 861 ■ 
 
 require any corporation, partnership, or individual, subject to the 
 provisions of this title, to furnish him with such facts, data, and in- 
 formation as in his judgment are necessary to collect the tax imposed 
 by this title. 
 
 Kepcal nnd rLmpudincnt of former acts. 
 
 Sec. 214. That Title II (sections two hundred to two hundred and 
 seven, inclusive) of the Act entitled "An Act to provide increased 
 revenue to defray the expenses of the increased appropriations for the 
 Army and Navy, and the extensions of fortifications, and for other 
 purposes," approved March third, nineteen hundred and seventeen, 
 is hereby repealed. 
 
 Any amount heretofore or hereafter paid on account of the tax 
 imposed by such Title II, shall be credited toward the payment of the 
 tax imposed by this title, and if the amount so paid exceeds the 
 amount of such tax the excess shall be refunded as a tax erroneously 
 or illegally collected. 
 
 Subdivision (1) of section three hundred and one of such Act of 
 September eighth, nineteen hundred and sixteen, is hereby amended 
 so that the rate of tax for the taxable year nineteen hundi^ed and 
 seventeen shall be ten per centum instead of twelve and one-half per 
 centum, as therein provided. 
 
 Subdivision (2) of such section is hereby amended to read as fol- 
 lows: 
 
 "(2) This section shall cease to be of effect on and after January 
 first, nineteen hundred and eighteen." 
 
 TITLE III.— WAR TAX ON BEVEEAGES. 
 
 Bistillod spirits when nscd as bCTcrage or as Ingredient. 
 
 Sec. 300. That on and after the passage of this Act there shall be 
 levied and collected on all distilled spirits in bond at that time or 
 that have been or that may be then or there|a,fter produced in or 
 imported into the United States, except such distilled spirits as are 
 subject to the tax provided in section three hundred and three, in 
 addition to the tax now imposed by law, a tax of $1.10 (or, if with- 
 drawn for beverage purposes or for use in the manufacture or produc- 
 tion of any article used or intended for use as a beverage, a tax of 
 $2.10) on each proof gallon, or wine gallon when below proof, and a 
 proportionate tax at a like rate on all fractional parts of such proof 
 or wine gallon, to be paid by the distiller or importer when with- 
 drawn, and collected under the provisions of existing law. 
 
 That in addition to the tax under existing law there shall be levied 
 and collected upon all perfumes hereafter imported into the United 
 ' States containing distilled spirits, a tax of $1.10 per wine gallon, and 
 a propotrionate tax at a like rate on all fractional parts of such wine 
 gallon. Such tax shall be collected by the collector of customs and 
 deposited as internal-revenue collections, under such rules and regu- 
 lations as the Commissioner of Internal Revenue, with the approval 
 of the Secretary of the Treasury, may prescribe. 
 
 Instructions relative to sale and use of distilled spirits and wines for 
 other than beverage purposes. (T. D. 2788 ; modifying. T. Ds. 2559, 2.576, 
 2593, 2699.) 
 
 Tax on distilled spirits contained in vermouth, cordials, and other com- 
 pounds. (T. D. 25^^ifi2eci by Microsoft® 
 
862 APPENDIX. 
 
 Drawback allowed under pamgi'apli O of section 4 of tariff act of 
 October 3, 1913, on domestic alcohol used in manufacture of medicinal 
 and toilet articles to include additional tax paid on such alcohol iinder 
 this act. (T. JD. 2572.) 
 
 Iiiil>ortallou of distilled spirits. 
 
 Sec. 301. That no distilled spirits produced after the passage of 
 this Act shall be imported into the United States from any foreign 
 country, or from the West Indian Islands recently acquired from 
 DenmarJi (unless produced from products the growth of such islands, 
 and not then into any State or Territory or District of the United 
 States in which the manufacture or sale of intoxicating liquor is 
 prohibited), or from Porto Kico, or the Philippine Islands. Under 
 such rules, regulations, and bonds as the Secretary of the Treasury 
 may prescribe, the provisions of this section shall not apply to dis- 
 tilled spirits imported for other than (1) beverage purposes or (2) 
 use in the manufacture or production of any article used or mtended 
 for use as a beverage. 
 
 Alcohol produced on or after October 4, 1917, in Porto Eieo may be 
 brought into United States and withdrawn tor denaturization without 
 payment ol tax under tills act. (T. D. 2641.) 
 
 Rcniov.ll of spirits from distilleries. 
 
 Sec. 302. That at registered distilleries producing alcohol, or other 
 high-proof spirits, packages may be filled witli such spirits reduced 
 to not less than one hundred proof from the receiving cisterns and tax 
 paid without being entered into bonded warehouse. Such spirits 
 may be also transferred from the receiving cisterns at such distilleries, 
 by means of pipe lines, direct to storage tanks in the bonded ware- 
 house and may be warehoused in such storage tanks. Such spirits 
 may be also transferred in tanks or tank cars to general bonded 
 warehouses for storage therein, «ither in storage tanks in such ware- 
 houses or in the tanks in which tliey were transferred. Such spirits 
 may also be transferred after tax payment from receiving cisterns 
 or warehouse storage tanks to tanks or tank cars and may be trans- 
 ported in such tanks or tank cars to the premises of rectifiers of spirits. 
 The Commissioner of Internal Eevenue, with the approval of the 
 Secretary of the Treasury, is hereby empowered to prescribe all neces- 
 sary regulations relating to the drawing off, transferring, gauging, 
 storing and transporting of such spirits ; the records to be kept and 
 returns to be made ; the size and kind of packages and tanks to be used ; 
 tlie marking, branding, numbering and stamping of such packages 
 and tanks ; the kinds of stamps, if any, to be used; and the time and 
 manner of paying the tax ; the kind of bond and the penal sum of same. 
 The tax prescribed by law must be paid before such spirits are re- 
 moved from the distillery premises, or from general bonded ware- 
 house in the case of spirits transferred thereto, except as otherwise 
 provided by law. 
 
 Under such regulations as the Commissioner of Internal Revenue, 
 
 with the approval of the Secretary of the Treasuryj ma^^ prescribe, 
 
 distilled spirits may hereafter be drawn from receiving cisterns and 
 
 deposited in distillery warehouses without having affixed to the 
 
 packages containing the same distillery warehouse stamps, and such 
 
 packages, when so deposited in, warehouse, may be withdrawn there- 
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APPENDIX. 863 
 
 from on the original gauge where the same have remained in such 
 warehouse for a period not exceeding thirty days from the date of 
 deposit. 
 
 Under such regulations as the Commissioner of Internal Eevenue, 
 with the approval of the Secretary of the Treasury, may prescribe, 
 the manufacture, warehousing, withdrawal, and shipment, under 
 the provisions of existing law, of ethyl alcohol for other than (1) bev- 
 erage purposes or (2) use in the manufacture or production of any 
 article used or intended for use as a beverage, and denatured alcohol, 
 may be exempted from the provisions of section thirty-two hundred 
 and eighty -three, Revised Statutes of the United States. 
 
 Under such regulations as the Commissioner of Internal Hevenue, 
 ■with the approval of the Secretary of the Treasury, may prescribe, 
 manufacturers of ethyl alcohol for other than beverage purposes may 
 be granted permission under the provisions of section thirty-two 
 hundred and eighty-five, Eevised Statutes of the United States, to 
 fill fermenting tub in a sweet-mash distillery not oftener than once 
 in forty-eight hours. 
 
 Regulations as to removal of tax-paid alcohol in tanks or tank cars 
 from distilleries to premises of rectifiers. (T. D. 2790.) 
 
 Stock of distilled spirits on hand intended for sale. 
 
 Sec. 303. That upon all distilled spirits produced in or imported 
 into the United Sta:tes upon which the tax now imposed by law has 
 been paid, and which, on the day this Act is passed, are held by a 
 retailer in a quantity in excess of fifty gallons in the aggregate, or by. 
 any other person, corporation, partnership, or association in any 
 quantity, and which are intended for sale, there shall be levied, 
 assessed, collected, and paid a tax of $1.10 (or, if intended for sale 
 for beverage purposes or for use in the manufacture or production 
 of any article used or intended for use as a beverage, a tax of $2.10) 
 on each proof gallon, and a proportionate tax at a like rate on all 
 fractional parts of such proof gallon : Provided, That the tax on such 
 distilled spirits in the custody of a court of bankruptcy in insolvency 
 proceedings on June first, nineteen hundred and seventeen, shall 
 be paid by the person to whom the court delivers such distilled 
 spirits at the time of such deliveiy, to the extent that the amovmt 
 thus delivered exceeds the fifty gallons hereinbefore provided. 
 
 Distilled spirits held by manufacturers and intended not for sale as 
 spirits, but for manufacture of nonbeverage products, not subject to 
 taxation under this section. (T. D. 2643.) 
 
 Additional lax on rectified spirits. 
 
 Sec. 304. That in addition to the tax now imposed or imposed by 
 this Act on distilled spirits there shall be levied, assessed, collected, 
 and paid a tax of 15 cents on each proof gallon and a proportionate 
 tax at a like rate on all fractional parts of such proof gallon on all 
 distilled spirits or wines hereafter rectified, purified, or refined in 
 such manner, and on all mixtures hereafter produced in such manner, 
 that the person so rectifying, purifying, refining, or mixing the same 
 is a rectifier within the meaning of section thirty-two hundred and 
 forty-four. Revised Statutes, as amended, and on all such articles 
 in the possession of the rectifier on the day this Act is passed: 
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864 APPENDIX. 
 
 Provided^ That this tax shall not apply to gin produced by the re- 
 distillation of a pure spirit over juniper berries and other aromatics. 
 
 When the process of rectification is completed and the tax pre- 
 scribed by this section has been paid, it shall be unlawful for the 
 rectifier or other dealer to reduce m proof or increase in volume such 
 spirits or wine by the addition of water or other substance ; nothing 
 herein contained shall, however, prevent a rectifier from using again 
 in the process of rectification spirits already rectified and upon which 
 the tax has theretofore been paid. 
 
 The tax imposed by this section shall not attach to cordials or 
 liqueurs on which a tax is imposed and paid under the Act entitled 
 "An Act to increase the revenue, and for other purposes," approved 
 September eighth, nineteen hundred and sixteen, nor to the mixing 
 and blending of wines, where such blending is for the sole purpose of 
 perfecting such wines according to commercial standards, nor to 
 blends made exclusively of two or more pure straight whiskies aged 
 in wood for a period not less than four years and without the addi- 
 tion of coloring or flavoring matter or any other substance than pure 
 water and if not reduced below ninety proof: Provided, That such 
 blended whiskies shall be exempt from tax under this section only 
 when compounded under the immediate supervision of a revenue 
 officer, in such tanks and under such conditions and supervision as 
 the Commissioner of Internal Revenue, with the approval of the 
 Secretary of the Treasury, may prescribe. 
 
 All distilled spirits taxable under this section shall be subject to 
 uniform regulations concerning the use thereof in the manufacture, 
 blending, compounding, mixing, marking, branding, and sale of 
 whisky and rectified spirits, and no discrimination whatsoever shall 
 be made by leason of a diiference in the character of the material 
 from which same may have been produced. 
 
 The business of a rectifier of spirits shall be carried on, and the 
 tax on rectified spirits shall be paid, under such rules, regulations, 
 and bonds as may be prescribed by the Commissioner of Internal 
 Revenue, with the approval of the Secretary of the Treasury. 
 
 Any person violating any of the provisions of this section shall be 
 deemed to be guilty of a misdemeanor and, upon conviction, shall be 
 fined not more than $1,000 or imprisoned not more than two years. 
 He shall, in addition, be liable to double the tax evaded together 
 with the tax, to be collected by assessment or on any bond given. 
 
 Instructions applicable to cases arising under this section. (T. D. 
 
 2566.) 
 
 Discontinuance of certain stamps anthoitzed. 
 
 Sec. 305. That hereafter collectors of internal revenue shall not 
 furnish wholesale liquor dealer's stamps in lieu of and in exchange 
 for stamps for rectified spirits unless the package covered by stamp 
 for rectified spirits is to be broken into smaller packages. 
 
 The Commissioner of Internal Revenue, with the approval of the 
 Secretary of the Treasury, is authorized to discontinue the use of the 
 following stamps whenever in his judgment the interests of the Gov- 
 ernment will be subserved thereby : 
 
 Distillery warehouse, special bonded warehouse, special bonded re- 
 warehouse, general bonded warehouse, general bonded retransfer, 
 transfer brandy, export tobacco, export cigars, export oleomargarine 
 and export fermentedQi£|^iPQ5#ip?/'0S0/^ 
 
APPENDIX. 865 
 
 Meters, tanks, pipes, and other apparatus at dlsUlIerles, etc. 
 
 Sec. 306. That the Commissioner of Internal Revenue, with the 
 approval of the Secretary of the Treasury, is hereby authorized to 
 require at distilleries, breweries, rectifying houses, and wherever 
 else in his judgment such action may be deemed advisable, the in- 
 stallation of meters, tanks, pipes, or any other apparatus for the 
 purpose of protecting the revenue, and such meters, tanks, and 
 pipes and all necessary labor incident thereto shall be at the expense 
 of the person, corporation, partnership, or association on whose 
 premises the installation is required. Any such person, corporation, 
 partnership, or association refusing or neglecting to install such 
 apparatus when so required by the commissioner shall not be per- 
 mitted to conduct business on such premises. 
 
 Additional tax on fermented Uqnors. 
 
 Sec. 307. That on and after the passage of this Act there shall be 
 levied and collected on all beer, lager beer, ale, porter, and other 
 similar fermented liquor, containing one-half per centum or more of 
 alcohol, brewed or manufactured and sold, or stored in warehouse, 
 or removed for consumption or sale, within the United States, by 
 whatever name such liquors may be called, in addition to the tax 
 now imposed by law, a tax of $1.50 for every barrel containing not 
 more than thirty-one gallons, and at a like rate for any other quan- 
 tity or for the fractional parts of a barrel authorized and defined 
 by law. 
 
 Malt tonics and extracts containing more than 2 per cent of alcohol 
 and less than 12 jjer cent of solids due to malt, held to be fermented 
 malt liquors. (T. D. 2717.) 
 
 Conveyance of taxable fcTmcnted liquors to be nsed as distilling material. 
 
 Sec. 308. That from and after the passage of this Act taxable 
 fermented liquors may be conveyed without paj'ment of tax from 
 the brewery premises where produced to a contiguous industrial 
 distillery of either class established under the Act of October third, 
 nineteen hundred and thirteen, to be used as distilling material and 
 the residue from such distillation, containing less than one-half of 
 one per centum of alcohol by volume, which is to be used in making 
 beverages, may be manipulated by cooling, flavoring, carbonating, 
 settling, and filtering on the distillery premises or elsewhere. 
 
 The removal of the taxable fermented liquor from the brewery 
 to the distillery and the operation of the distillery and removal of 
 the residue therefrom shall be under the supervision of such officer 
 or ofiicers as the Commissioner of Internal Revenue shall deem 
 proper, and the Commissioner of Internal Revenue, with the ap- 
 proval of the Secretary of the Treasury, is hereby authorized to 
 make such regulations from time to time, as may be necessary to 
 give force and effect to this section and to safeguard the revenue. 
 
 Additional tax on ivinc, inclading Tcrmuth. 
 
 Sec. 309. That upon all still wines, including vermuth, and upon 
 all champagne and other sparkling wines, liqueurs, cordials, artificial 
 or imitation wines or compounds sold as wine, produced in or im- 
 ported into the United States, and hereafter removed from the 
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866 
 
 APPENDIX. 
 
 custom-house, place of manufacture, or from bonded premisas for 
 sale or consumption, there shall be levied and collected, in addition 
 to the tax now imposed by law upon such articles, a tax equal to 
 such tax, to be levied, collected, and paid under the provisions of 
 existing law. 
 
 TTincs In excess of 25 gallons on hand for sale. 
 
 Sec. 310. That upon all articles specified in section three hundred 
 and nine upon which the tax now imposed by law has been paid 
 and which are on the day this Act is passed held in excess of twenty- 
 five gallons in the aggregate of such articles and intended for sale, 
 there shall be levied, collected, and paid a tax equal to the tax 
 imposed by such section. 
 
 Additional tax on grape brandy or wine spirits. 
 
 Sec. 311. That upon all grape brandy or wine spirits withdrawn by 
 a producer of wines from any fruit distillery or special bonded ware- 
 house under subdivision (c) of section four hundred and two of the 
 Act entitled "An Act to increase the revenue, and for other purposes," 
 approved September eighth, nineteen hundred and sixteen, there 
 shall be levied, assessed, collected, and paid in addition to the tax 
 therein imposed, a tax equal to double such tax, to be assessed, col- 
 lected, and paid under the provisions of existing law. 
 
 Additional tax on grape brand; or wine spirits for fortifying pnrposcs. 
 
 Sec. 312. That upon all sweet wines held for sale by the producer 
 thereof upon the day this Act is passed there shall be levied, assessed, 
 collected, and paid an additional tax equivalent to 10 cents per proof 
 gallon upon the grape brandy or wine spirits used in the fortification 
 of such wine, and an additional tax of 20 cents per proof gallon shall 
 be levied, assessed, collected, and paid upon all grape brandy or 
 wine spirits withdrawn by a producer of sweet wines for the purpose 
 of fortifying such wines and not so used prior to the passage of this 
 Act. 
 
 sirups or extracts, etc., containing less than one-half of 1 per cent alcohol; natural mineral waters. 
 
 Sec. 313. That there shall be levied, assessed, collected, and paid — 
 (a) Upon all prepared sirups or extracts (intended for use in the 
 manufacture or production of beverages, commonly laiown as soft 
 drinks, by soda fountains, bottling establishments, and other similar 
 places) sold by the manufacturer, producer, or importer thereof, if 
 so sold for not more than $1.30 per gallon, a tax of 5 cents per gallon; 
 if so sold for more than $1.30 and not more than $2 per gallon, a tax 
 of 8 cents per gallon ; if so sold for more than $2 and not more than 
 $3 per gallon, a tax of 10 cents per gallon ; if so sold for more than $3 
 and not more than $4 per gallon, a tax of 15 cents per gallon; and if 
 so sold for more than $4 per gallon, a tax of 20 cents per gallon ; and 
 
 (b) Upon all unfermented grape juice, soft drinks, or artificial 
 mineral waters (not carbonated), and fermented liquors containing 
 less than one-half per centum of alcohol, sold by the manufacturer, 
 producer, or importer thereof, in bottles or other closed containers, 
 and upon all ginger ale, root beer, sarsaparilla, pop, and other car- 
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APPENDIX. 867 
 
 bonated waters or bevra^ages, manufactured aad sold by the manu- 
 facturer, producer, or importer of the carbonic acid gas used in 
 carbonating th« same, a tax of 1 cent per gallon ; and 
 
 (c) Upon all natural mineral waters or table waters, sold by the 
 producer, bottler, or importer thereof, in bottles or other closed con- 
 tainfiTS, at over 10 cents per gallon, a tax of 1 cent per gallon. 
 
 Where sirups or extracts are prepared in final marketable form by A, 
 ■who marks or labels them only with the name or trade-mark B, who on 
 their being delivered to him sells them without further manufacture to 
 his own customers, if the transaction between A and B is an actual sale 
 of the articles and not merely the employment of A by B to manufacture 
 them as his agent at a specified profit, A is the " manufacturer " who is 
 liable for the tax. (T. D. 2795.) 
 
 Liability of manufacturer to tax upon sales of bottled fruit juices ; 
 article 4, Regulations No. 52, amended. (T. D. 2932.) 
 
 Manufacturers, producers, importers, and vendors are liable to tax 
 upon all sales of taxable articles made to States or political subdivisions 
 thereof. (T. D. 2897.) 
 
 Taxability of sales in foreign commerce. (T. P. 2739.) 
 
 Sctnrns, monthly. 
 
 Sec. 314. That each such manufacturer, producer, bottler, or im- 
 ported shall maJie monthly returns under oath to the collector of in- 
 ternal revenue for the district in which is located the principal place 
 of business, containing such information necessary for the assessment 
 of the tax, and at such times and in such manner, as tlie Commis- 
 sioner of Internal Eevenne, with the approval of the Secretary of the 
 Treasury, may by regulation prescribe. 
 
 Carbonic-acid gas in drums or otbcr containers. 
 
 Sec. 315. That upon all earbonic-acid gas in drums or other con- 
 tainers (intended for use in the manufacture or production of car- 
 bonated water or other drinks) sold by the manufacturer, producer, 
 or importer thereof, there shall be levied, assessed, collected, and paid 
 a tax of 5 cents per pound. Such tax shall be paid by the purchaser 
 to the vendor thereof and shall be collected, returned, and paid to 
 the United States by such vendor in the same manner as provided 
 in section five hundred and three. 
 
 Taxability of sales in foreign commerce. (T. D. 2739.) 
 
 TITLE IV.— WAE TAX ON CIGAES, TOBACCO, AND MANU- 
 FACTUEES THEEEOF. 
 
 Additional tax on cigars and cigarettes. 
 
 Sec. 400. That upon cigars and cigarettes, which shall be manu- 
 factured and sold, or removed for consumption or sale, there sTiaU 
 be levied and colleotedj in addition to the taxes now imposed by 
 existing law, the f ollawing taxes, to be paid by the manufacturer or 
 importer thereof: (a) on cigars of all descriptions made of tobacco, 
 or any substitute therefor, and weighing not more than three pounds 
 per thousand, 25 cents per thousand ;_ (b) on cigars made of tobacco, 
 or any substitute therefor, and weighing more than three pounds per 
 thousand, if manufactured o-r imported to retail iit 4 cents or more 
 
 Digitized by Microsoft® 
 
868 APPENDIX. 
 
 each, and not more than 7 cents each, $1 per thousand ; (c) if manu- 
 factured or imported to retail at more than 7 cents each and not 
 more than 15 cents each, $3 per thousand; (d) if manufactured or 
 imported to retail at more than 15 cents each and not more than 
 20 cents each, $5 per thousand ; (e) if manufactured or imported to 
 retail at more than 20 cents each, $7 per thousand: Provided, That 
 the word "retail" as used in this section shall mean the ordinary 
 retail price of a single cigar, and that the Commissioner of Internal 
 Revenue may, by regulation, require the manufacturer or importer 
 to affix to each box or container a conspicuous label indicating by 
 letter the clause of this section under which the cigars therein con- 
 tained have been tax-paid, which must correspond with the tax-paid 
 stajnp on said box or container; (f) on cigarettes made of tobacco, 
 or any substitute therefor, made in or imported into the United 
 States and weighing not more than three pounds per thousand, 80 
 cents per thousand ; weighing more than three pounds per thousand, 
 $1.20 per thousand. 
 
 Every manufacturer of cigarettes (including small cigars weighing 
 not more than three pounds per thousand) shall put up all the cigar- 
 ettes and such small cigars that he manufactures or has manufac- 
 tured for him, and sells or removes for consumption or use, in pack- 
 ages or parcels containing five, eight, ten, twelve, fifteen, sixteen, 
 twenty, twenty-four, forty, fifty, eighty, or one hundred cigarettes 
 each, and shall securely affix to each of said packages or parcels a 
 suitable stamp denoting the tax thereon and shall properly cancel the 
 same prior to such sale or removal for consumption or use under such 
 regulations as the Commissioner of Internal Revenue, with the 
 approval of the Secretary of the Treasury, shall prescribe ; and all 
 cigarettes imported from a foreign country shall be packed, stamped, 
 and the stamps canceled in a like manner, in addition to the import 
 stamp indicating inspection of the custom-house before they are 
 withdrawn therefrom. 
 
 Rate of tax to be paid on cigars which retail three for 10 cents. (T. D. 
 2645.) 
 
 Additional tax on tobacco and snalf ; additional packages. 
 
 Sec. 401. That upon all tobacco and snuff hereafter manufactured 
 and sold, or removed for consumption or use, there shall be levied 
 and collected, in addition to the tax now imposed by law upon such 
 articles, a tax of 5 cents per pound, to be levied, collected, and paid 
 under the provisions of existing law. 
 
 In addition to the packages provided for under existing law, 
 manufactured tobacco and snuff may be put up and prepared by 
 the manufacturer for sale or cunsumption, in packages of the follow- 
 ing description : Packages containing one-eighth, three-eighths, five- 
 eighths, seven-eighths, one and one-eighth, one and three-eighths, 
 one and five-eighths, one and seven-eighths, and five ounces. 
 
 Pacliages of cigarettes, tobacco, and snuff. 
 
 Sec. 402. That sections four hundred, four hundred and one, and 
 four hundred and four, shall take effect thirty days after the pas- 
 sage of this Act: Provided, That after the passage of this Act and 
 before the expiration of the aforesaid thirty days, cigarettes and 
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APPENDIX. 869 
 
 manufactured tobacco and snuff may be put up in the packages now 
 provided for by law or in the packages provided for in sections four 
 hundred and four hundred and one. 
 
 Tax on tobacco, snuff, cigars, or cigarettes remoTed prior to passage of act. 
 
 Sec. 403. That there shall also be levied and collected, upon all 
 manufactured tobacco and snuff in excess of one hundred pounds or 
 upon cigars or cigarettes in excess of one thousand, which were 
 manufactured or imported, and removed from factory or custom- 
 house prior to the passage of this Act, bearing tax-paid stamps 
 affixed to such articles for the payment of the taxes thereon, and 
 which are, on the day after this Act is passed, held and intended for 
 sale by any person, corporation, partnership, or association, and 
 upon all manufactured tobacco, snuff, cigars, or cigarettes, removed 
 from factory or customs house after the passage of this Act but 
 prior to the time when the tax imposed by section four hundred or 
 section four hundred and one upon such articles takes effect, an 
 additional tax equal to one-half the tax imposed by such sections 
 upon such articles. 
 
 cigarette paper and talbes. 
 
 Sec. 404. That there shall be levied, assessed, and collected upon 
 cigarette paper made up into packages, books, sets, or tubes, made 
 up in or imported into the United States and intended for use by the 
 smoker in making cigarettes the following taxes : On each package, 
 book, or set, containing more than twenty-five but not more than 
 fifty papers, one-half of 1 cent; containing more than fifty but not 
 more than one hundred papers, 1 cent; containing more than one 
 hundred papers, 1 cent for each one hundred papers or fractional 
 part thereof ; and upon tubes, 2 cents for each one hundred tubes or 
 fractional part thereof. 
 
 Regulations concerning payment of tax on cigarette papers and tubes. 
 (T. D. 25r.2.) 
 
 TITLE V— WAR TAX ON FACILITIES FUENISHED BY 
 PUBLIC UTILITIES, AND INSURANCE. 
 
 Amonnts paid for transportation by rail or water. 
 
 Sec. 500. That from and after, the first day of Novemoer, nineteen 
 hundred and seventeen, there shall be levied, assessed, collected, and 
 paid (a) a tax equivalent to three per centum of the amount paid for 
 the transportation by rail or water or by any form of mechanical 
 motor power when in competition with carriers by rail or water of 
 property by freight consigned from one point in the United States 
 to another; (b) a tax of 1 cent for each 20 cents, or fraction thereof, 
 paid to any person, corporation, partnership, or association, engaged 
 in the business of transporting parcels or packages by express over 
 regular routes between fixed terminals, for the transportation of any 
 package parcel, or shipment by express from one point in the United 
 States to another : Provided, that nothing herein contained shall be 
 construed to require the carrier collecting such tax to list separately 
 in any bill of lading, freight receipt, or other similar document, the 
 
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870 
 
 APPENDIX. 
 
 amount of the tax herein levied, if the total amount of the freight and 
 tax be therein stated ; (c) a tax equivalent to eight per centum of the 
 amount paid for the transportation of persons by rail or water, or 
 by any form of mechanical motor power on a regular established line 
 when in competition with carriers by rail or water, from one point 
 in the United States to another or to any point in Canada or Mexico, 
 where the ticket therefor is sold or issued in the United States, not 
 including the amount paid for commutation or season tickets for 
 trips less than thirty miles, or for transportation the fare for which 
 does not exceed 35 cents, and a tax equivalent to ten per centum of 
 the amount paid for seats, berths, and staterooms in parlor cars, 
 sleeping cars, or on vessels. If a mileage book used for such trans- 
 portation or accommodation has been purchased before this section 
 takes effect, or if cash fare be paid, the tax imposed by this section 
 shall be collected from the person presenting the mileage book, or 
 paying the cash fare, by the conductor or other agent, when presented 
 for such transportation or accommodation, and the amount so col- 
 lected shall be paid to the United States in such manner and at sueh 
 times as the Commissioner of Internal Revenue, with the approval 
 of the Secretary of the Treasury, may prescribe; if a ticket (other 
 than a mileage book) is bought and partially used before this section 
 goes into effect it shall not he taxed, but if bou^t but not so used 
 before this section takes effect, it shall not be valid for passage until 
 the tax has been paid and such payment evidenced on the ticket in 
 such manner as the Commissioner of Internal Revenue, with the 
 approval of the Secretary of the Treasury, may by regulation pre- 
 scribe; (d) a tax equivalent to five per centum of the amount paid 
 for the transportation of oil by pipe line ; (e) a tax of 5 cents upon 
 each telegraph, telephone, or radio, dispatch, message, or conversa- 
 tion, which originates within the United States, and for the trans- 
 mission of which a charge of 15 cents or more is imposed : Provided, 
 That only one payment of such tax shall be required, notwithstand- 
 ing the lines or stations of one or more persons, corporations, part- 
 nerships, or associations shall be used for the transmission of such 
 dispatch, message, or conversation. 
 
 Amounts paid by foreign Governments for transportation and transmis- 
 sion services are subject to the tax imposed by this section. (T. D. 2785.) 
 
 Transportation of property by water from a port of the United States to 
 Philippine Islands, Porto Rico, Virgin Islands, and Canal Zone is not 
 subject to transportation tax ; rail transportation of property from in- 
 terior point of United States for transshipment to Philippine Islands, 
 Porto Rico, and A'irgin Islands is transportation of property " consigned 
 from one point in the United States to another," but is exempt from 
 internal-revenue tax by reason of special acts of Congress; such trans- 
 portation of property destined to Canal Zone is not exempt. (T. D. 
 2795.) 
 
 " Regular established line " construed to mean a regularity of opera- 
 tion of transportation facilities by motor power between diffei-ent points ; 
 the casual or intermittent transportation of passengers by automobile be- 
 tween two points would not constitute a regular established line ; automo- 
 bile that is merely for hire and which tak-es the passenger to any point he 
 directs does not constitute a regular established line. (T. D. 2795.) 
 
 Tax on shipments or packages by express. (T. D. 2.580.) 
 
 Passengers failing to pay and carriers failing to collect 8 per cent pas- 
 senger tax subject themselves to penalties imposed by section 1O04. (T. D. 
 2596.) 
 
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APPENDIX. 871 
 
 Where charges for transportation of property, etc., are paid by United 
 States, State, Territory, or District of Columbia, no tax is due ; if a Gov- 
 ernment bill of lading is not used, it must be shown that charges are paid 
 as noted. (T. D. 259T.) 
 
 By whom tax shall be paid; exemption. 
 
 Sec. 501. That the taxes imposed by section five hundred shall be 
 paid by the person corporation, partnership, or association paying 
 for the services or facilities rendered. 
 
 In case such carrier does not, because of its ownership of the com- 
 modity transported, or for any other reason, receive the amount 
 which as a carrier it would otherwise charge, such carrier shall pay a 
 tax equivalent to the tax which would be imposed upon the trans- 
 portation of such commodity if the carrier received payment for 
 such transportation: Provided^ That in case of a carrier which on 
 May first, nineteen hundred and seventeen, had no rates or tariffs on 
 file with the proper Federal or State authority, the tax shall be com- 
 puted on the basis of the rates or tariffs of other carriers for like 
 services as ascertained and determined by the Commissioner of 
 Internal Revenue : Provided further. That nothing in this or the pre- 
 ceding section shall be construed as imposing a tax (a) upon the 
 transportation of any commodity which is necessary for the use of 
 the carrier in the conduct of its business as such and is intended to 
 be so used or has been so used; or (b) upon the transportation of 
 company material transported by one carrier, which constitutes a 
 part of a railroad system, for another carrier which is also a part of 
 the same system. 
 
 Exemption. 
 
 Sec. 502. That no tax shall be imposed under, section five hundred 
 upon any payment received for services rendered to the United 
 States, or any State, Territory, or the District of Columbia. The 
 right to exemption under this section shall be evidenced in such 
 manner as the Commissioner of Internal Revenue, with the approval 
 of the Secretary of the Treasury, may by regulation prescribe. 
 
 Government bills of lading and transportation requests. (T. D. 2551.) 
 Exemption of telephone, telegraph, and radio messages in connection 
 with Government business. (T. D. 2619.) 
 
 Amounts paid for transportation of freight or persons, or for transmis- 
 sion of messages, vi^hich are finally paid by the Government under cost- 
 plTis contract are exempt from taxes. (T. D. 2742.) 
 
 Collection of tax; returns. 
 
 Sec. 503. That each person, corporation, partnership, or associa- 
 tion receiving any payments referred to in section five hundred shall 
 collect the amount of the tax, if any, imposed by such section from 
 the person, corporation, partnership, or association making such 
 payments, and shall make monthly returns under oath, in duplicate, 
 and pay the taxes so collected and the taxes imposed upon it under 
 paragraph two of section five hundred and one to the collector of 
 internal revenue of the district in which the principal office or place 
 of business is located. Such returns shall contain such information, 
 and be made in such manner, as the Commissioner of Internal 
 
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872 
 
 APPENDIX. 
 
 lievenue, with the approval of the Secretary of the Treasury, may 
 by regulation prescribe. 
 
 Insurance policies; Issuance of; exemption. 
 
 Sec. 504. That from and after the first clay of November, nine- 
 teen hundred and seventeen, there shall be levied, assessed, collected, 
 snd paid the following taxes on the issuance of insurance policies: 
 
 (a) Life insurance: A tax equivalent to 8 cents on each $100 or 
 fractional part thereof of the amount for which any life is insured 
 under any policy of insurance, or other instrument, by whatever 
 name the same is called : Provided, That on all policies for life insur- 
 ance only by which a life is insured not in excess of $500, issued on 
 the industrial or weekly-payment plan of insurance, the tax shall 
 be forty per centum of the amount of the first weekly premium: 
 Provided further, That policies of reinsurance shall be exempt from 
 the tax imposed by this subdivision; 
 
 Annuity contract is not taxable as policy of life Insurance. (T. D. 
 2785.) 
 
 Tax imposed by this section does not apply to soldiers' and sailors' 
 insurance written by War Eisk Insurance Bureau. (T. D. 2563.) 
 
 (b) Marine, inland, and fire insurance: A tax equivalent to 1 cent 
 on each dollar or fractional part thereof of the premium charged 
 under each policy of insurance or other instrument by whatever 
 name the same is called whereby insurance is made or renewed upon 
 property of any description (including rents or profits), whether 
 against peril by sea or inland waters, or by fire or lightning, or other 
 peril: Provided, That policies of reinsurance shall be exempt from 
 the tax imposed by this subdivision ; 
 
 (c) Casualty insurance: A tax equivalent to 1 cent on each dollar 
 or fractional part thereof of the premium charged under each policy 
 of insurance or obligation of the nature of indemnity for loss, damage, 
 or liability (except bonds taxable under subdivision two of schedule 
 A of Title VIII) issued or executed or renewed by any person, cor- 
 poration, partnership, or association, transacting the business of em- 
 ployer's liability, workmen's compensation, accident, health, tornado, 
 plate glass, steam boiler, elevator, burglary, automatic sprinkler, auto- 
 mobile, or other branch of insurance (except life insurance, and in- 
 surance described and taxed in the preceding subdivision) : Provided, 
 That policies of reinsurance shall be exempt from the tax imposed 
 by this subdivision; 
 
 Policies of guaranty and fidelity insurance are subject to tax on in- 
 demnity and surety bonds. (T. D. 2704.) 
 
 (d) Policies issued by any person, corporation, partnership, or 
 association, whose income is exempt from taxation under Title I of 
 the Act entitled "An Act to increase the revenue, and for other pur- 
 poses," approved September eighth, nineteen hundred and sixteen, 
 shall be exempt from the taxes imposed by this section. 
 
 Beturns, monthly, In dnplicate. 
 
 Sec. 505. That every person, corporation, partnership, or associa- 
 tion, issuing policies of insurance upon the issuance of which a tax is 
 imposed by section five .hundred and four, shall, within the first 
 
APPENDIX. 873 
 
 fifteen days of each month, make a return under oath, in duplicate, 
 and pay such tax to the collector of internal revenue of the district 
 in which the principal office or place of business of such person, cor- 
 poration, partnership, or association is located. Such returns shall 
 contain such information and be made in such manner as the Com- 
 missioner of Internal Revenue, with the approval of the Secretary of 
 the Treasury, may by regulation prescribe. 
 
 TITLE VI.— WAR EXCISE TAXES. 
 
 Articles subject to tax. 
 
 Sec. 600. That there shall be levied, assessed, collected, and paid — 
 
 (a) Upon all automobiles, automobile trucks, automobile wagons, 
 and motorcycles, sold by the manufacturer, producer, or importer, 
 a tax equivalent to three per centum of the price for which so sold ; 
 and 
 
 If dealer adds demountable top to tax-paid automobile or driver's cab 
 to tax-paid truck, sale of improved vehicle is not subject to tax; dealer 
 who contracts to sell to customer truck composed of tax-paid chassis and 
 body to be added by body builder and who performs his contract, ia 
 liable to tax as manufacturer of the completed truck, thouRli order to 
 body builder purports to be that of customer through dealer as his agent ; 
 single sale by dealer of tractor and trailer bought by him together tax 
 paid, and extra trailer, is not taxable unless combination of all three vehi- 
 cles (otherwise than merely by coupling) form functioning vehicle. (T. D. 
 2795.) 
 
 (b) Upon all piano players, graphophones, phonographs, talking 
 machines, and records used in connection with any musical instru- 
 ment, jjiano player, graphophone, phonograph, or talking machine, 
 sold by the manufacturer, producer, or importer, a tax equivalent to 
 three per centum of the price for which so sold ; and 
 
 (c) Upon all moving-picture films (which have not been exposed) 
 sold by the manufacture]- or importer a tax equivalent to one-fourth 
 of 1 cent per linear foot; and 
 
 (d) Upon all positive moving-picture films (containing a picture 
 ready for projection) sold or leased by the manufacturer, producer, 
 or importer, a tax equivalent to one-half of 1 cent per linear foot ; and 
 
 Tax on positive moving-picture films is to be paid only once, " when 
 first sold or leased." (T. D. 2568.) 
 
 (e) Upon any article commonly or commercially known as jew- 
 elry, whether real or imitation, sold by the manufacturer, producer, 
 or importer thereof, a tax equivalent to three per centum of the price 
 for which so sold; and 
 
 On pencil made or plated with precious metal, presence of ring or 
 loop by which pencil may be hung on chain indicates that pencil is de- 
 signed for personal adornment and requires it to be classified as jewelry. 
 (T. D. 2785.) 
 
 Retail jeweler selling articles commercially known as " jewelry " manu- 
 factured, produced, or imported by him is subject to tax, though Im- 
 ported, produced, or manufactured before October 3, 1917. (T. D. 
 2651.) 
 
 (f) Upon all tennis rackets, golf clubs, baseball bats, lacrosse 
 sticks, balls of all kinds, including baseballs, foot balls, tennis, 
 ooli, lacrosse, billiard and pool balls, fishing rods and reels, billiard 
 and pool tables, chesg^y^j^i^ggl^^l^c^*^^ and pieces, dice, games 
 
874 
 
 APPENDIX. 
 
 and parts of games, except playing cards and children's toys and 
 games, sold by the manufacturer, producer, or importer, a tax equiv- 
 alent to three per centum of the price for which so sold ; and 
 
 Bowling-alley tenpins are "parts of games," and are subject to tax. 
 (T. D. 2795.) 
 
 Where baseball bats or other sporting goods are prepared in final mar- 
 ketable form by A, who marks or labels them only with name or trade- 
 mark of B, who, on their being delivered to him, sells them without fur- 
 ther manufacture to his own customers, if transaction between A and B 
 is actual sale of the articles and not merely employment of A by B to 
 manufacture them as his agent at a specified profit, A is the " manufac- 
 turer " who is liable for the tax. (T. D. 2795.) 
 
 (g) Upon all perfumes, essences, extracts, toilet waters, cosmetics, 
 I^etroleum jellies, hair oils, pomades, hair dressings, hair restoratives, 
 hair dyes, tooth and mouth washes, dentifrices, tooth pastes, aromatic 
 cachous, toilet soaps and powders, or any similar substance, article, 
 or preparation by whatsoever name known or distinguished, upon 
 all of the above which are used or applied or intended to be used or 
 applied for toilet purposes, and which are sold by the manufacturer, 
 importer, or producer, a tax equivalent to two per centum of the 
 price for which so sold; and 
 
 Soap powder chiefly designed for laundry purposes and sold by manu- 
 facturer in bulk to laundries and also sold for retail distribution to public 
 in packages bearing directions for use as hair shampoo, for which it is to 
 small extent actually used, is subject to excise tax upon sales in packages 
 but not upon sales in bulk. (T. D. 2785.) 
 
 Persons liable for payment of tax imposed bv this paragraph. (T. D. 
 2638.) 
 
 (h) Upon all pills, tablets, powders, tinctures, troches or lozenges, 
 sirups, medicinal cordials or bitters, anodynes, tonics, plasters, lini- 
 ments, salves, ointments, pastes, drops, waters (except those taxed 
 under section three hundred and thirteen of this Act) , essences, spir- 
 its, oils, and all medicinal preparations, compounds, or compositions 
 whatsoever, the manufacturer or producer of which claims to have 
 any private formula, secret, or occult art for making or preparing 
 the same, or has or claims to have any exclusive right or title to the 
 making or preparing the same, or which are prepared, uttered, 
 vended, or exposed for sale under any letters patent, or trade-mark, 
 or which, if prepared by any formula, published or unpublished, are 
 held out or recommended to the public by the makers, venders, or 
 proprietors thereof as proprietary medicines or medicinal proprietary 
 articles or preparations, or as remedies or specifics for any disease, 
 diseases, or affection whatever affecting the human or animal body, 
 and which are sold by the manufacturer, producer, or importer, a 
 tax equivalent to two per centum of the price for which so sold; and 
 
 (1) Coined name used for particular medicinal preparation, to dis- 
 tinguish it from same or like preparations of other manufacturers (a) is 
 a "trade-mark"; (&) amoiints to a holding out of that preparation as 
 proprietary. (2) Autographic name of the manufacturer or medicinal 
 preparation printed across middle of label (o) is not a "trade-mark"; 
 (&) does not amount to a holding out of that preparation as proprietary. 
 (3) Name, initials, or monogram of manufacturer printed on label of 
 medicinal preparation, so as to be practically part of name of prepara- 
 tion (a) is not of itself a "trade-mark"; (b) amounts to a holding out 
 of that preparation as proprietary, (4) Medicinal preparation held out 
 or recommended as proprietary or as remedy or specific for disease is 
 
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APPENDIX. .875 
 
 taxable (a) even if sold, in first instance, only to physicians and drug- 
 gists ; (6) even if a "bacterln"; and (c) even if an uncompounded nat- 
 ural substance merely diried or refined. (T. D. 2785.) 
 
 Persons liable for payment of tax imposed by this paragraph. (T. D. 
 2638.) 
 
 (i) Upon all chewing gum oi' substitute therefor sold by the manu- 
 facturer, producer, or importer, a tax equivalent to two per centum 
 of the price for which so sold ; and 
 
 (j) Upon all cameras sold by the manufacturer, producer, or im- 
 porter, a tax equivalent to three per centum of the price for which 
 so sold. 
 
 Manufacturers, producers, and importers are subject to tax upon all 
 sales of taxable articles made to States or political subdivisions thereof, 
 except where specifically exempt, as under subdi-^asion (10) of section 
 900 of the revenue act of 1918. (T. D. 2897.) 
 
 Taxes do not apply to articles sold in foreign commerce or by any of 
 certain methods by a manufacturer, producer, or importer located in one 
 of the several States of the United States. (T. D. 2739.) 
 
 Article V, RegTilations No. 44, as to sales by agents, amended. (T. D. 
 2909.) 
 
 Returns, montbly. 
 
 Sec. 601. That each manufacturer, producer, or importer of any 
 of the articles enumerated in section six hundred shall make monthly 
 returns under oath in duplicate and pay the taxes imposed on such 
 articles by this title to the collector of internal revenue for the dis- 
 trict in which is located the principal place of business. Such re- 
 turns shall contain su-ch information and be made at such times and 
 in such manner as the Commissioner of Internal Revenue, with the 
 approval of the Secretary of the Treasury, may by regulations pre- 
 scribe. 
 
 ArUclcs ou hand at passage of the act. 
 
 Sec. 602. That upon all articles enumerated in subdivisions (a), 
 (b), (e), (f), (g), (h), (i), or (j) of section six hundred, 
 which on the day this Act is passed are held and intended for sale 
 by any person, corporation, partnership, or association, other than 
 (1) a retailer who is not also a wholesaler, or (2) the manufacturer, 
 producer, or importer thereof, there shall be levied, assessed, col- 
 lected, and paid a tax equivalent to one-half the tax imposed by each 
 such subdivision upon the sale of the articles therein enumerated. 
 This tax shall be paid by the person, corporation, partnership, or 
 association so holding such articles. 
 
 The taxes imposed by this section shall be assessed, collected, and 
 paid in the same manner as provided in section ten hundred and two 
 in the case of additional taxes upon articles upon which the tax 
 imposed by existing law has been p'aid. 
 
 Nothing in this section shall be construed to impose a tax upon 
 articles sold and delivered prior to May ninth, nineteen hundred and 
 seventeen, where the title is reserved in the vendor as security for 
 the payment of the purchase money. 
 
 The " passing on " to the purchaser of the excise tax on sales is not 
 collection of tax for Government, but a private transaction between 
 manufacturer and purchaser. The department can not undertake to 
 advise the manufacturer as to method of securing his reimbursement; 
 only interest of the Government is that amount of tax should not be mis- 
 represented to purchaser. (T. D. 2785.) 
 
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876 APPENDIX. 
 
 Boats and yacbta. 
 
 Sec. 603. That on the day this Act takes effect, and thereafter on 
 July first in each year, and also at the time of the original purchase 
 of a new boat by a user, if on any other date than July first, there 
 shall be levied, assessed, collected, and paid upon the use of yachts, 
 pleasure boats, power boats, and sailing boats, of over five net tons, 
 and motor boats with fixed engines, not used exclusively for trade 
 or national defense, or not built according to plans and specifications 
 approved by the Navy Depaitment, an excise tax to be based on 
 each yacht or boat, at rates as follows : Yachts, pleasure boats, power 
 boats, motor boats with fixed engines, and sailing boats, of over five 
 net tons, length not over fifty feet, 50 cents for each foot, length over 
 fifty feet and not over one hundred feet, $1 for each foot, length over 
 one hundred feet, $2 for each foot ; motor boats of not over five net 
 tons with fixed engines, $5. 
 
 In determining the length of such yachts, pleasure boats, power 
 boats, motor boats with fixed engines, and sailing boats, the measure- 
 ment of over-all length shall govern. 
 
 In the case of a tax imposed at the time of the original purchase 
 of a new boat on any other date than July first, the amount to be paid 
 shall be the same number of twelfths of the amount of the tax as the 
 number of calendar months, including the month of sale, remaining 
 prior to the following July first. 
 
 Motor boat operated solely in taking out fisliing parties for hire is 
 subject to tax, although it is licensed in the coasting trade and trans- 
 portation tax is collected from passengers. (T. D. 2795.) 
 
 Motor boats operated by a company engaged in business of taking 
 parties on trips to enjoy the trip and the scenery are not used ex- 
 clusively for trade, and their use is subject to tax on boats. (T. D. 
 2785.) 
 
 Affidavit containing itemized list of articles sold in foreign commerce 
 upon which tax has been paid, giving names of consignees, destination, 
 amount of tax, month in which paid, and statement that goods were 
 actually delivered to consignees named in foreign country, etc., and that 
 affiant has received advices to this effect, may be accepted as satisfac- 
 tory evidence in support of claim for recovery of taxes paid under this 
 title in cases where, because of number of shipments and pmall amount 
 of tax involved in each, it is impracticable to furnish copies of invoices 
 covering goods sold, ships' receipts, or copies of through bills of lading. 
 (T. D. 2785.) 
 
 Synopsis decision relating to tax on boats ; meaning of term " for 
 trade." (T. D. 1^7.53.) 
 
 TITLE VII.— WAR TAX ON ADMISSIONS AND DUES. 
 
 Excmiitlon and definition. 
 
 Sec. 700. That from and after the first day of November, nineteen 
 hundred and seventeen, there shall be levied, assessed, collected, and 
 paid (a) a tax of 1 cent for each 10 cents or fraction thereof of the 
 amount paid for admission to any place, including admission by sea- 
 son ticket or subscription, to be paid by the person paying for such 
 admission: Provided, That the tax on admission of children under 
 twelve years of age where an admission charge for such children is 
 made shall in every case be 1 cent; and (b), in the case of persons 
 (except bona fide employees, municipal officers on official business. 
 
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APPENDIX. 877 
 
 and children under twelve j-ears of age) admitted free to any place 
 at a time when and under circumstances imder which an admission 
 charge is made to other persons of the same class, a tax of 1 cent for 
 each 10 cents or fraction thereof of the price so charged to such 
 other persons for the same or similar accommodations, to be paid by 
 the person so admitted; and (c) a tax of 1 cent for each 10 cents or 
 fraction thereof paid for adraission to any public performance for 
 profit at any cabaret or other similar entertainment to which the 
 charge for admission is wholly or in part included in the price paid 
 for refreshment, service, or merchandise; the amount paid for such 
 admission to be computed under rules prescribed by the Commis- 
 sioner of Internal Revenue, with the approval of the Secretary of the 
 Treasury, such tax to be paid by the person paying for such refresh- 
 ment, service, or merchandise. In the case of persons having the 
 permanent use of boxes or seats in an opera house or any place of 
 amusement or a lease for the use of such box or seat in such opera 
 house or place of amusement there shall be levied, assessed, collected, 
 and paid a tax equivalent to ten per centum of the amount for which 
 a similar box or seat is sold for performance or exhibition at which 
 the box or seat is used or reserved by or for the lessee or holder. 
 These taxes shall not be imposed in the case of a place the maximum 
 charge for admission to which is 5 cents, or in the case of shows, 
 rides, and other amusements, (the maximum charge for admission to 
 which is 10 cents) within outdoor general amusement parks, or in the 
 case of admissions to such parks. 
 
 Xo tax shall be levied under this title in respect to any admissions 
 all the proceeds of which inure exclusively to the benefit of religious, 
 educational, or charitable institutions, societies, or organizations, or 
 admissions to agricultural fairs none of the profits of which are dis- 
 tributed to stockholders or members of the association conducting 
 the same. 
 
 The term " admission " as used in this title includes seats and 
 tables, reserved or otherwise, and other similar accommodations, and 
 the charges made therefor. 
 
 Tax due on nmount paid for admission to performance occurring and 
 dues for membership period elapsing after October 31, 1917, regardless of 
 date of payment. (T. D. 2605.) 
 
 Method of computing amounts to be collected in case of admissions to 
 cabarets, etc. ; definition of " cabaret or other similar entertainment." 
 (T. T>. -IGOS. ) 
 
 Payment for share of stock in social, athletic, or sporting club required 
 as condition of becoming member will be regarded as an initiation fee. 
 (T. D. 2646.) 
 
 Liability to tax in cases of complimentary tickets, theater tickets sold 
 through an agency, and amounts charged by Y. M. C. A. and T. M. H. A. 
 for admissions and dues. (T. D. 2592.) 
 
 Membership fees or dues; exemptions. 
 
 Sec. 701. That from and after the first day of November, nineteen 
 hundred and seventeen, there shall be levied, assessed, collected, and 
 paid, a tax equivalent to ten per centum of any amount paid as dues 
 or membership fees (including initiation fees), to any social, athletic, 
 or sporting club or organization, where such dues or fees are in excess 
 of $12 per year; such taxes to be paid by the person paying such 
 dues or fees : Provided, That there shall be exempted from the provi- 
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878 
 
 APPENDIX. 
 
 sions of this section all amounts paid as dues or fees to a fraternal 
 beneficiary society, order, or association, operating under the lodge 
 system or for the exclusive benefit of the members of a fraternity 
 itself operating under the lodge system, and providing for the pay- 
 ment of life, sick, accident, or other benefits to the members of such 
 society, order, or association or their dependents. 
 
 The rule of T. D. 2646 that share of stock required as condition of be- 
 coming member of club is regarded as " initiation fee " held to apply to 
 club organized as business corporation and having stockholders who are 
 not members; dues taxable include sum paid by member in addition to 
 regular dues to obtain privileges on club grounds for members of his 
 family. (T. D. 2795.) 
 
 Dues paid for membership privileges in chamber of commerce or other 
 primarily commercial orgajii2ation are taxable if privileges include club- 
 house facilities such as are afforded by ordinary city social club ; com- 
 mercial club conducted primarily for commercial objects held not within 
 rule for special reason that chief social feature, that of restaurant, besides 
 being maintained as adjunct to luncheon meetings is regularly open to 
 members, local business, and civic organizations and used by them for 
 purposes which the club is engaged in furthering. (T. D. 2795.) 
 
 Tax due on amount paid for admission to performance occurring and 
 dues for membership period elapsing after October 31, 1917, regardless 
 of date of payment. (T. D. 2605.) 
 
 Dues paid by members of chambers of commerce are exempt from 
 tax. (T. D. 2628.) 
 
 HoiT and from whom tax eoll«ciod. 
 
 Sec. 702. That every person, corporation, partnership, or associa- 
 tion (a) receiving any payments for such admission, dues, or fees, 
 shall collect the amount of the tax imposed by section seven hundred 
 or seven hundred and one from the person making such payments, 
 or (b) admitting any person free to any place for admission to which 
 a charge is made shall collect the amount of the tax imposed by sec- 
 tion seven hundred from the person so admitted, and (c) in either case 
 shall make returns and payments of the amount so collected, at the 
 same time and in the same manner as provided in section five hun- 
 dred and three of this Act. 
 
 TITLE VIII.— WAR STAMP TAXES. 
 
 Ob Olid after December 1, 1913. 
 
 Sec. 800. That on and after the first day of December, nineteen 
 hundred and seventeen, there shall be levied, collected, and paid, for 
 and in respect of the several bonds, debentures, or certificates of 
 stock and of indebtedness, and other documents, instruments, mat- 
 ters, and things mentioned and described in Schedule A of this title, 
 or for or in respect of the vellum, parchment, or paper upon vs'hich 
 such instruments, matters, or things, or any of them, are written or 
 printed, by any person, corporation, partnership, or association who 
 makes, signs, issues, sells, removes, consigns, or ships the same, or 
 for whose use or benefit the same are made, signed, issued, sold, re- 
 moved, consigned, or shipped^ the several taxes specified in such 
 schedule. 
 
 Loan of stock for purposes of sale and return of such stock subject to 
 transfer tax imposed by this section. (T. D. 2685.) 
 
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APPENDIX. 879 
 
 Excmpllons. 
 
 Sec. 801. That there shall not be taxed under this title any bond, 
 note, or other instrument, issued by the United States, or by any for- 
 eign Government, or by any State, Territory or the District of Colum- 
 bia, or local subdivision thereof, or municipal or other corporation 
 exercising the taxing power, when issued in the exercise of a strictly 
 governmental, taxing, or municipal function; or stocks and bonds 
 issued by cooperative building and loan associations which are organ- 
 ized and operated exclusively for the benefit of their members and 
 make loans only to their shareholders, or by mutual ditch or irrigating 
 companies. 
 
 Bonds given by officials of State, townsliip, county or village for faith- 
 ful performance of duties are not subject to stamp tax. (T. D. 2624.) 
 
 Penalty for Tlolatlon, 
 
 Sec. 802. That whoever— 
 
 (a) Makes, signs, issues, or accepts, or causes to be made, signed, 
 issued, or accepted, any instrument, document, or paper of any kind 
 or description whatsoever without the full amount of tax thereon 
 being duly paid; 
 
 Failure to stamp promissory notes subject to stamp tax under subdi- 
 vision 6, Schedule A, renders malcer and acceptor of such notes separately 
 Uable under this section. (T. D. 2795.) 
 
 (b) Consigns or ships, or causes to be consigned or shipped, by 
 parcel post any parcel, package, or article without the full amount of 
 tax being duly paid; 
 
 (c) Manufactures or imports and sells, or offers for sale, or causes 
 to be manufactured or imported and sold, or offered for sale, any 
 playing cards, package, or other article without the full amount of 
 tax being duly paid; 
 
 (d) Makes use of any adhesive stamp to denote any tax imposed by 
 this title without canceling or obliterating such stamp as prescribed 
 in section eight hundred and four; 
 
 Is guilty of a misdemeanor and upon conviction thereof shall pay 
 a fine of not more than $100 for each offense. 
 
 DlntilatiOD, fraudulent use of, removal, unlawful possession of stamps ; penalty. 
 
 Sec. 803. That whoever— 
 
 (a) Fraudulently cuts, tears, or removes from any vellum, parch- 
 ment, paper, instrument, writing, package, or article, upon which any 
 tax is imposed by this title, any adhesive stamp or the impression of 
 any stamp, die, plate, or other article provided, made, or used in 
 pursuance of this title ; 
 
 (b) Fraudulently uses, joins, fixes, or places to, with, or upon any 
 vellum, parchment, paper, instrument, writing, package, or article, 
 upon which any tax is imposed by this title, (1) any adhesive stamp, 
 or the impression of any stamp, die, plate, or other article, which has 
 been cut, torn, or removed from any other vellum, parchment, paper, 
 instrument, writing, package, or article, upon which any tax is im- 
 posed by this title; or (2) any adhesive stamp or the impression of 
 any stamp, die, plate, or other article of insufficient value; or (3) any 
 
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880 
 
 APPENDIX. 
 
 forged or counterfeit stamp, or the impression of any forged or coun- 
 terfeited stamp, die, plate, or other article; 
 
 (c) Willfully removes, or altersthe cancellation, or defacing marks 
 of, or otherwise prepares, any adhesive stamp, with intent to use, or 
 cause the same to be used, after it has been already used, or know- 
 ingly or willfully buys, sells, offers for sale, or gives away, any such 
 washed or restored stamp to any person for use, or knowingly uses 
 the same; 
 
 (d) Knowingly and without lawful excuse (the burden of proof of 
 such excuse being on the accused) has in possession any washed, 
 restored, or altered stamp, which has been removed from any vellum, 
 parchment, paper, instrument, writing, package, or article, is guilty 
 of a misdemeanor and upon conviction shall oe punished by a fine 
 of not more than $1,000, or by imprisonment for not more than five 
 years, or both, in the discretion of the court, and any such reused, 
 canceled, or counterfeit stamp and the vellum, parchment, document, 
 paper, package, or article upon which it is placed or impressed shall 
 be forfeited to the United States. 
 
 CanccUation of stamps. 
 
 Sec. 804. That whenever an adhesive stamp is used for denoting 
 any tax imposed by this title, except as hereinafter provided, the 
 l^erson, corporation, partnership, or association, using or affixing the 
 same shall write or stamp or cause to be written or stamped there- 
 upon the initials of his or its name and the date upon which the same 
 is attached or used, so that the same may not again be used: Pro- 
 vided, That the Commissioner of Internal Revenue may prescribe 
 such other method for the cancellation of such stamps as he may 
 deem expedient. 
 
 stamps, preparation; contract; extension of laws relative to asseBsment and collection of tax. 
 
 Sec. 805. (a) That the Commissioner of Internal Eevenue shall 
 cause to be prepared and distributed for the payment of the taxes 
 prescribed in this title suitable stamps denoting the tax on the docu- 
 ment, articles, or thing to which the same may be affixed, and shall 
 prescribe such method for the affixing of said stamps in substitution 
 for or in addition to the method provided in this title, as he may 
 deem expedient. 
 
 (b) The Commissioner of Internal Eevenue, with the approval of 
 the Secretary of the Treasury, is authorized to procure any of the 
 stamps provided for in this title by contract whenever such stamps 
 can not be speedily prepared by the Bureau of Engraving and Print- 
 ing; but this authority shall expire on the first day of January, 
 nineteen hundred and eighteen, except as to imprinted stamps fur- 
 nished under contract, authorized by the Commissioner of Internal 
 Eevenue. 
 
 (c) All internal-revenue laws relating to the assessment and col- 
 lection of taxes are hereby extended to and made a part of this title, 
 so far as applicable, for the purpose of collecting stamp taxes omitted 
 through mistake or fraud from any instrument, document, paper, 
 writing, parcel, package, or article named herein. 
 
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APPENDIX. 881 
 
 Foatmaster General to be furnished etamps. 
 
 Seo. 806. That the Commissioner of Internal Revenue shall furnish 
 to the Postmaster General without prepayment a suitable quantity 
 of adhesive stamps to be distributed to and kept on sale by the 
 various postmasters in the United States. The Postmaster General 
 may require each such postmaster to give additional or increased 
 bond as postmaster for the value of the stamps so furnished, and 
 each such postmaster shall deposit the receipts from the sale of such 
 stamps to the credit of and render accounts to the Postmaster General 
 at such times and in such form as he may by regulations prescribe. 
 The Postmaster General shall at least once monthly transfer all col- 
 lections from this source to the Treasury as internal-revenue collec- 
 tions. 
 
 Assistant treasurers to be furnished stamps ; Schedule A. 
 
 Sec. 807. That the collectors of the several districts shall furnish 
 without prepayment to any assistant treasurer or designated depos- 
 itary of the United States located in their respective collection dis- 
 tricts a suitable quantity of adhesive stamps for sale. In such cases 
 the collector may require a bond, with sufficient sux'eties, to an amount 
 equal to the value of the adhesive stamps so furnished, conditioned 
 for the faithful return, whenever so required, of all quantities or 
 amounts undisposed of, and for the payment monthly of all quan- 
 tities or amounts sold or not remaining on hand. The Secretary of 
 thei Treasury may from time to time make such regulations as he 
 may find necessary to insure the safe-keeping or prevent the illegal 
 use of all such adhesive stamps. 
 
 Schedule A. — Stajip taxes. 
 
 1. Bonds of indebtedness: Bonds, debentures, or certificates of 
 indebtedness issued on and after the first day of December, nineteen 
 hundred and seventeen, by any person, corporation, partnership, or 
 association, on each $100 of face value or fraction thereof, 5 cents: 
 Provided, That every renewal of the foregoing shall be taxed as a 
 new issue : Provided further, That when a bond conditioned for the 
 repayment or payment of money is given in a penal sum greater 
 than the debt secured, the tax shall be based upon the amount 
 secured. 
 
 2. Bonds, indemnity and surety: Bonds for indemnifying any 
 person, corporation, partnership, or corporation who shall have 
 become bound or engaged as surety, and all bonds for the due exe- 
 cution or performance of any contract, obligation, or requirement, 
 or the duties of any office or position, and to account for money 
 received by virtue thereof, and all other bonds of any description, 
 except such as may be required in legal proceedings, not otherwise 
 provided for in this schedule, 50 cents: Provided, That where a 
 premium is charged for the execution of such bond the tax shall be 
 paid at the rate of one per centum on each dollar or fractional part 
 thereof of the premium charged : Provided further. That policies of 
 reinsurance shall be exempt from the tax imposed by this subdi- 
 
 Stamp tax imposecJ on indemnity and surety bonds applies to indemnity 
 bonds made to Government to secure issuance of duplicate checks for 
 allotment and aUoB^p^gg g^^W/'&PSS^^^"^" """^ °* O'^**''^*''' ^' 1^"' 
 
 140184°— 20 56 
 
882 APPENDIX. 
 
 Classification of bonds of indebtedness and promissory notes for pur- 
 pose of stamp tax. (T. D. 2713.) 
 
 Policies of guaranty and fidelity insurance are subject to tax on indem- 
 nity and surety bonds. (T. D. 2704.) 
 
 Qualifying bonds given by trustees in bankruptcy are not taxable. (T. 
 D. 2647.) 
 
 3. Capital stock, issue : On each original issue, whether on organi- 
 zation or reorganization, of certificates of stock by any association, 
 company, or corporation, on each $100 of face value or fraction 
 thereof, 5 cents : y^rovided. That where capital stock is issued with- 
 out face value, the tax shall be 5 cents per share, unless the actual 
 value is in excess of $100 per share, in which case the tax shall be 5 
 cents on each $100 of actual value or fraction thereof. 
 
 The stamps representing the tax imposed by this subdivision shall 
 be attached to the stock books and not to the certificates issued. 
 
 Synopsis decision relative to taxable issues and transfers of stock. 
 (T. D. 2752.) 
 
 4. Capital stock, sales or transfers : On all sales, or agreements to 
 sell, or memoranda of sales or deliveries of, or transfers of legal title 
 to shares or certificates of stock in any association, company, or cor- 
 poration, ^vhether made upon or shown by the books of the associa- 
 tion, company, or corporation, or by any assignment in blank, or by 
 any delivery, or by any paper or agreement or memorandum or 
 other evidence of transfer or sale, whether entitling the holder in 
 any manner- to the benefit of such stock or not, on each $100 of face 
 value or fraction thereof, 2 cents, and where such shares of stock 
 are without par value, the tax shall be 2 cents on the transfer or sale 
 or agreement to sell on each share, unless the actual value thereof 
 is in excess of $100 per share, in which case the tax shall be 2 cents 
 on each $100 of actual value or fraction thereof : Provided, That it is 
 not intended by this title to impose a tax upon an agreement evi- 
 dencing a deposit of stock certificates as collateral security for 
 money loaned thereon, which stock certificates are not actually sold, 
 nor upon such stock certificates so deposited : Promded further, That 
 the tax shall not be imposed upon deliveries or transfers to a broker 
 for sale, nor upon deliveries or transfers by a broker to a customer 
 for whom and upon whose order he has purchased same, but such 
 deliveries or transfers shall be accompanied by a certificate setting 
 forth the facts : Provided further, That in case of sale where the evi- 
 dence of transfer is shown only by the books of the company the 
 stamp shall be placed upon such books; and where the change of 
 ownership is by transfer of the certificate the stamp shall be placed 
 upon the certificate ; and in cases of an agreement to sell or where the 
 transfer is by delivery of the certificate assigned in blank there shall 
 be made and delivered by the seller to the buyer a bill or memoran- 
 dum of such sale, to which the stamp shall be affixed ; and every bill 
 or memorandum of sale or agreement to sell before mentioned shall 
 show the date thereof, the name of the seller, the amount of the sale, 
 and the matter or thing to which it refers. Any person or persons 
 liable to pay the tax as herein provided, or anyone who acts in the 
 matter as agent or broker for such person or persons who shall make 
 any such sale, or who shall in pursuance of any such sale deliver 
 any stock or evidence of the sale of any stock or bill or memorandum 
 thereof, as herein reqijijre^^w^t^oi^.havir^he proper stamps affixed 
 
APPENDIX. 883 
 
 thereto with intent to evade the foregoing provisions shall be deemed 
 guilty of a misdemeanor, and upon conviction thereof shall pay a fine 
 of not exceeding $1,000, or be imprisoned not more than six months, 
 or both, at the discretion of the court. 
 
 A so-called business property investment bond, ^vherein it is certified 
 that holder is owner of interest in certain specified real property, legal 
 title to which was previously conveyed to trustee, and whereby corpora- 
 tion issuing same agrees to manage property and distribute proceeds in 
 certain amount, is not subject to tax as certificate of stock. (T. D. 2795.) 
 
 Loan of stock lor purposes of sale and return of such stock subject to 
 transfer tax imposed by this section. (T. D. 2685.) 
 
 Synopsis decision relative to taxable issues and transfers of stock. 
 (T. D. 2752.) 
 
 Taxability of deeds and stock transfers to and by Alien Property Cus- 
 todian. (T. D. 2786.) 
 
 5. Produce, sales of, on exchange : Upon each sale, agreement of 
 sale, or agreement to sell, including so-called transferred or scratch 
 sales, any products or merchandise at any exchange, or board of 
 trade, or other similar place, for future delivery, for each $100 in 
 value of the merchandise covered by said sale or agreement of sale 
 or agreement to sell, 2 cents, and for each additional $100 or frac- 
 tional part thereof in excess of $100, 2 cents : Provided^ That on every 
 sale or agreement of sale or agreement to sell as aforesaid there shall 
 be made and delivered by the seller to the buyer a bill, memorandum, 
 agreement, or other evidence of such sale, agreement of sale, or agree- 
 ment to sell, to which there shall be affixed a lawful stamp or stamps 
 in value equal to the amount of the tax on such sale : Provided fur- 
 ther^ That sellers of commodities described herein, having paid the 
 tax provided by this subdivision, may transfer such contracts to a 
 clearing house corporation or association, and such transfer shall 
 not be deemed to be a sale, or agreement of sale, or an agreement to 
 sell within the provisions of this Act, provided that such transfer 
 shall not vest any beneficial interest in such clearing house associa- 
 tion but shall be made for the sole purpose of enabling such clearing 
 house association to adjust and balance the accounts of the members 
 of said clearing house association on their several contracts. And 
 every such bill, memorandum, or other evidence of sale or agreement 
 to sell shall show the date thereof, the name of the seller, the amount 
 of the sale, and the matter or thing to which it refers ; and any person 
 or persons liable to pay the tax as herein provided, or anyone who 
 acts in the matter as agent or broker for such person or persons, who 
 shall make any such sale or agreement of sale, or agreement to sell, 
 or who shall, in pursuance of any such sale, agreement of sale, or 
 agreement to sell, deliver any such products or merchandise without 
 a bill, memorandum, or other evidence thereof as herein required, 
 or who shall deliver such bill, memorandum, or other evidence of 
 sale, or agreement to sell, without having the proper stamps affixed 
 thereto, with intent to evade the foregoing provisions, shall be 
 deemed guilty of a misdemeanor, and upon conviction thereof shall 
 pay a fine of not exceeding $1,000, or be imprisoned not more than 
 six months, or both, at the discretion of the court. 
 
 That no bill, memorandum, agreement, or other evidence of such 
 sale, or agreement of sale, or agreement to sell, in case of cash sales 
 
 Digitized by Microsoft® 
 
884 APPENDIX. 
 
 of products or merchandise for immediate or prompt delivery which 
 in good faith are actually intended to be delivered shall be subject to 
 this tax. 
 
 Sales of produce or merchandise for future delivery must be made at 
 an exchange or board of trade or other similar place in order for tax 
 to apply; sale by member of exchange made by mail or wire not at 
 exchange is not subject to the tax. (T. D. 2795.) 
 
 6. Drafts or checks payable otherwise than at sight or on demand, 
 promissory notes, except bank notes issued for circulation, and for 
 each renewal of the same, for a sum not exceeding $100, 2 cents; and 
 for each additional $100 or fractional part thereof, 2 cents. 
 
 The general rule that time drafts are subject to stamp tax when 
 delivered within territorial jurisdiction of the United States, and not 
 otherwise, is applicable to time drafts used between territorial jurisdic- 
 tion of the United States (including the States, District of Columbia, 
 Territory of Hawaii, and Territory of Alaska), and the Canal Zone, 
 Philippine Islands, Virgin Islands, or Porto lllcb, whether covering 
 shipments or not. (T. D. 2795.) 
 
 Classification of promissory notes for purpose of stamp tax. (T. D. 
 2713.) 
 
 Tax attaches upon delivery within United States to drafts and checks 
 expressed to be payable otherwise than at sight or on demand. (T. D. 
 2682.) 
 
 7. Conveyance : Deed, instrument, or writing, whereby any lands, 
 tenements, or other realty sold shall be granted, assigned, transferred, 
 or otherwise conveyed to, or vested in, the purchaser or purchasers, 
 or any othe,r person or persons, by his, her, or their direction, when 
 the consideration or value of the interest or property conveyed, 
 exclusive of the value of any lien or encumbrance remaining thereon 
 at the time of sale, exceeds $100 and does not exceed $500, 50 cents; 
 and for each additional $500 or fractional part thereof 50 cents: 
 Provided, That nothing contained in this paragraph shall be so con- 
 strued as to impose a tax upon any instrument or writing given to 
 secure a debt. 
 
 Taxability of deeds and stock transfers to and by Alien Property 
 Custodian. (T. D. 2786.) 
 
 8. Entry of any goods, wares, or merchandise at any custom-house, 
 either for consumpton or warehousing, not exceeding $100 in value, 
 25 cents ; exceeding $100 and not exceeding $500 in value, 50 cents ; 
 exceeding $500 in value, $1. 
 
 9. Entry for the withdrawal of any goods or merchandise from 
 customs bonded warehouse, 50 cents. 
 
 10. Passage ticket, one way or round trip, for each passenger, sold 
 or issued in the United States for passage by any vessel to a port or 
 place not in the United States, Canada, or Mexico, if costing not 
 exceeding $30, $1 ; costing more than $30 and not exceeding $60, $3 ; 
 costing more than $60, $5 : Provided, That such passage tickets, cost- 
 ing $10 or less, shall be exempt from taxation. 
 
 Passage tickets sold in United States from Hongkong to Vancouver, 
 not sold as part of round trip or through ticket from port in United 
 States, Canada, or Mexico, are not subject to the stamp tax. (T. D. 
 2795.) 
 
 11. Proxy for voting at any election for officers, or meeting for the 
 transaction of businesgjyg|y|^j(j^9^^^^^^ company or association. 
 
APPENDIX. 885 
 
 except religious, educational, charitable, fraternal, or literary socie- 
 ties, or public cemeteries, 10 cents. 
 
 12. Power of attorney granting authority to do or perform some 
 act for or in behalf of the gi-antor, which authority is not otherwise 
 vested in the grantee, 25 cents: Provided, That no stamps shall be 
 required upon any papers necessaiy to be used for the collection of 
 claims from the United States or from any State for pensions, back 
 pay, bounty, or for property lost in the militaiy or naval service or 
 upon Dowers of attorney required in bankruptcy cases. 
 
 13. TPlaying cards: Upon every pack of playing cards containing 
 not more than fifty-four cards, manufactured or imported, and sold, 
 or removed for consumption or sale, after the passage of this Act, a 
 tax of 6 cents per pack in addition to the tax imposed \uider existing 
 law. 
 
 14. Parcel-post paclcagcs: Upon every parcel or package trans- 
 ported from one point in the United States to another by parcel post 
 on which the postage amounts to 25 cents or more, a tax of 1 cent 
 for each 25 cents or fractional part thereof charged for such trans- 
 portation, to be paid by the consignor. 
 
 No such parcel or package shall be transported until a stamp or 
 stamps representing the tax due shall have been affixed thereto. 
 
 TITLE IX.— WAR ESTATE TAX. 
 
 Additional tax. 
 
 Sec. 900. That in addition to the tax imposed by section two 
 hundred and one of the Act entitled " An Act to increase the revenue, 
 and for other purposes," approved September eighth, nineteen hun- 
 dred and sixteen, as amended — 
 
 (a) A tax equal to the following percentages of its value is hereby 
 imposed upon the transfer of each net estate of every decedent dying 
 after the passage of this Act, the transfer of which is taxable under 
 such section (the value of such net estate to be determined as pro- 
 vided in Title II of such Act of September eighth, nineteen hundred 
 and sixteen) : 
 
 One-half of one per centum of the amount of such net estate not in 
 excess of $50,000; 
 
 One per centum of the amount by which such net estate exceeds 
 $50,000 and does not exceed $150,000; 
 
 One and one-half per centum of the amount by which such net 
 estate exceeds $150,000 and does not exceed $250,000; 
 
 Two per centum of the amount by which such net estate exceeds 
 $250,000. and does not exceed $450,000 ; 
 
 Two and one-half per centum of the amount by which such net 
 estate exceeds $450,000 and does not exceed $1,000,000; 
 
 Three per centum of the amount by which such net estate exceeds 
 $1,000,000 and does not exceed $2,000,000; 
 
 Three and one-half per centum of the amount by which such net 
 estate exceeds $2,000,000 and does not exceed $3,000,000 ; 
 
 Four per centum of the amount by which such net estate exceeds 
 $3,000,000 and does not exceed $4,000,000; 
 
 Four and one-half per centum of the amount by which such net 
 estate exceeds $4,OOO,aD<fefMttidcfd5^s(WnsrtDfiai0S®d $5,000,000; 
 
886 APPENDIX. 
 
 Five per centum of the amount by which such net estate exceeds 
 $5,000,000 and does not exceed $8,000,000; 
 
 Seven per centum of the amount by which such net estate exceeds 
 $8,000,000 and does not exceed $10,000,000 ; and 
 
 Ten per centum of the amount by which such net estate exceeds 
 $10,000,000. 
 
 Exemption during war. 
 
 Sec. 901. That the tax imposed by this title shall not apply to the 
 transfer of the net estate of any decedent dying while serving in the 
 military or naval forces of the United States, during the continuance 
 of the war in which the United States is now engaged, or if death 
 results from injuries received or disease contracted in such service, 
 within one year after the termination of such war. For the purposes 
 of this section the termination of the war shall be evidenced by the 
 proclamation of the President. 
 
 Acceptance of Liberty bonds In payment of tax. 
 
 Sec. 6. [Act of April 4, 1918 {40 Stat., 503, SOS), amendina 
 act of September U, 1917 {Ifi Stat., 288).^ That any bonds of the 
 United States bearing interest at a higher rate than four per centum 
 per annum (whether issued under section one of this Act or upon 
 convez'sion of bonds issued under this Act or under said Act ap- 
 proved April twenty- fourth, nineteen hundred and seventeen) , which 
 have been owned by any person continuously for at least six months 
 prior to the date of his death, and which upon such date constitute 
 part of his estate, shall, under rules and regulations prescribed by 
 the Secretary of the Treasury, be receivablei by the United States at 
 par and accrued interest in payment of any estate or inheritance 
 taxes imposed by the United States, under or by virtue of any 
 present, or future law upon such estate or the inheritance thereof. 
 
 United States bonds bearing interest at a liiglier rate tlian 4 per cent 
 to be accepted at par and accrued interest in payment of estate tax. 
 (T. D. 2705.) 
 
 llegulations relating to receipt of Liberty bonds in payment of estate 
 taxes. (T. D. 2802.) 
 
 TITLE X.— ADMINISTKATIVE PEOVISIONS. 
 
 West Indian Islands acquired from Denmark, articles to and from. 
 
 Sec. 1000. That there shall be levied, collected, and paid in the 
 United States, upon articles coming into the United States from the 
 West Indian Islands acquired from Denmark, a tax equal to the 
 internal-revenue tax imposed in the United States upon like, articles 
 of domestic manufacture ; such articles shipped from said islands to 
 the United States shall be exempt from the payment of any tax im- 
 posed by the internal-revenue laws of said islands: Provided, That 
 there shall be levied, collected, and paid in said islands, upon articles 
 imported from the United States, a tax equal to the internal-revenue 
 tax imposed in said islands upon like articles there manufactured; 
 and such articles going into said islands from the United States shall 
 be exempt fi'om payment of any tax imposed by the internal-revenue 
 laws of the United States. 
 
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APPENDIX. 887 
 
 Extcmlon o{ adinliilstriitlTC ptotIbIoiis of law. 
 
 Sec. 1001. That all administrative, special, or stamp provisions of 
 law, including the law relating to the assessment of taxes, so far as 
 applicable, are hereby extended to and made a part of this Act, and 
 every person, corporation, partnership, or association liable to any 
 tax imposed by this Act, or for the collection thereof, shall keep such 
 records and render, under oath, such statements and returns, and 
 shall comply with such regulations as the Commissioner of Internal 
 Revenue, with the approval of the Secretary of the Treasury, may 
 from time to time prescribe. 
 
 BctnrHs irbcre additional taxes arc imposed ; payment extended. 
 
 Sec. 1002. That where additional taxes are imposed by this Act 
 upon articles or commodities, upon which the tax imposed by exist- 
 ing law has been paid, the person, corporation, jpartnership, or asso- 
 ciation required by this Act to pay the tax shall, within thirty days 
 after its passage, make return under oath in such form and imder 
 such regulations as the Commissioner of Internal Revenue with the 
 approval of the Secretary of the Treasury shall prescribe. Payment 
 of the tax shown to be due may be extended to a date not exceeding 
 seven months from the passage of this Act, upon the filing of a bond 
 for payment in such form and amount and with such sureties as the 
 Commissioner of Internal Revenue, with the apjjroval of the Secre- 
 tary of the Treasury, may prescribe. 
 
 BoBd for extending payment of certain taxes. (T. D. 2557.) 
 Libei-ty bonds of tlie United States may be deposited as security for tlie 
 payment of floor taxes due in lieu of surety bonds. (T. D. 2537; T. D. 
 2554; T. D. 2574.) 
 
 Date when floor taxes become due after notice of assessment by col- 
 lector; 5 per cent penalty and interest accrued if not paid on or before 
 due date flxed in bond or within ten days after notice and demand iu 
 cases where bond has not been given. (T. D. 2648.) 
 
 CoUeetlon of tax; applicability of prOTlslons. 
 
 Sec. 1003. That in all cases where the method of collecting the 
 tax imposed by this Act is not specifically provided, the tax shall be 
 collected in such manner as the Commissioner of Internal Revenue 
 with the approval of the Secretary of the Treasury may prescribe. 
 All administrative and penalty provisions of Title VIII of this Act, 
 in so far as applicable, shall apply to the collection of any tax which 
 the Commissioner of Internal Revenue determines or prescribes shall 
 be paid by stamp. 
 
 Penalty for fallnre to maice return or malting labe or fraudnlent retnrn. 
 
 Sec. 1004. That whoever fails to make any return required by this 
 Act or the regulations made under authority thereof within the time 
 prescribed or who makes any false or fraudulent return, and whoever 
 evades or attempts to evade any tax imposed by this Act or fails to 
 collect or truly to account for and pay over any such tax, shall be 
 subject to a penalty of not more than $1,000, or to imprisonment for 
 not more than one year, or both, at the discretion of the court, and 
 in addition thereto ^ g^}^ Sy ^?cmso^ *^^ evaded, or not col- 
 
888 APPENDIX. 
 
 lected, or accounted for and paid over, to be assessed and collected 
 in the same manner as taxes are assessed and collected, in any case 
 in which the punishment is not otherwise specifically provided. 
 
 Passengers failing to pay and carriers failing to collect 8 per cent- 
 passenger tax subject themselves to penalties imposed by thi? section* 
 (T. D. 2596.) 
 
 One failing to iile income tax return can not be successfully prosecuted, 
 where collector of internal revenue's offer to compromise on payment Of 
 tax and penalty was accepted. (Rau v. United States, 260 Fed., 131.) 
 
 Where internal revenue officers, after defendant admitted he had not 
 filed income tax return, accepted both tax and penalty, informing de- 
 fendant that such payment would end matter and there would be no in- 
 dictment, such acceptance and statement were a compromise and con- 
 stituted bar to prosecution. (Id.) 
 
 Fact that sum paid by defendant was retained by the Treasury is 
 evidence that money was received in compromise of case. (Id.) 
 
 Ilules and rcj^ulatlons. 
 
 Sec. 1005. That the Commissioner of Internal Revenue, with the ' 
 approval of tlie Secretary of the Treasury, is hereby authorized to 
 make all needful rules and regulations for the enforcement of the pro- 
 visions of this Act. 
 
 Use of stamps on hand authorized. 
 
 Sec. 1006. That where the rat» of tax imposed by this Act, payable 
 I)y stamps, is an increase over previously existing rates, stam^js on 
 hand in the collectors' offices and in the Bureau of Internal Revenue 
 may continue to be used until the supply on hand is exhausted, but 
 shall be sold and accounted for at the rates provided by this Act, 
 and assessment shall be made against manufacturers and other 
 taxpayers haying such stamps on hand on the day this Act takes 
 effect for the difference between the amount paid for such stamps and 
 the tax due at the rates provided by this Act. 
 
 Prior contracts ; definition of " dealer." 
 
 Sec. 1007. That (a) if any person, corporation, partnership, or 
 association ha,s prior to May ninth, nineteen hundred and seventeen, 
 made a bona fide contract with a dealer for the sale, after the tax 
 takes effect, of any article (or, in the case of moving picture films, 
 such a contract with a dealer, exchange, or exhibitor, for the sale or 
 lease thereof) upon which a tax is imposed under Title III, IV, or 
 VI, or under subdivision thirteen of Schedule A of Title VIII, or 
 under this section, and (b) if such contract does not permit the add- 
 ing of the whole of such tax to the amount to be paid under such 
 contract, then the vendee or lessee shall, in lieu of the vendor or 
 lessor, pay so much of such tax as is not so permitted to be added to 
 the contract price. 
 
 The taxes payable by the vendee or lessee under this section shall 
 be paid to the vendor or lessor at the time the sale or lease is con- 
 summated, and collected, returned, and paid to the United Sta,tes 
 by such vendor or lessor in the same manner as provided in section 
 five hundred and three. 
 
 The term " dealer " as used in this section includes a vendee who 
 purchases any article with intent to use it in the manufacture or pro- 
 duction of another art' ' ' ' ' " '" 
 
APPENDIX, 889 
 
 Fractions of a cent. 
 
 Sec, 1008. That in the payment of any tax under this Act not 
 payable by stamp a fractional part of a cent shall be disregarded 
 unless it amounts to one-half cent or more, in which case it shall be 
 increased to one cent. 
 
 Adrancc payments und credits. 
 
 Sec. 1009. That the Secretary of the Treasury, under rules and 
 regulations prescribed by him, shall permit taxpayers liable to in- 
 come and excess profits taxes to make payments in advance in in- 
 stallments or in whole of an amount not in excess of the estimated 
 taxes which will be due from them, and upon determination of the 
 taxes actually due any amount paid in excess shall be refunded as 
 taxes erroneously collected: Provided,, That when payment is made 
 in installments at least one-fourth of such estimated tax shall be 
 paid before the expiration of thirty days after the close of the taxable 
 year, at least an additional one- fourth within two months, after the 
 close of the taxable year, at least an additional one-fourth within 
 four months after the close of the taxable year, and the remainder 
 of the tax due on or before the time now fixed by law for such pay- 
 ment : Provided further. That the Secretary of the Treasury, under 
 rules and regulations prescribed by him, may allow credit against 
 such taxes so paid in advance of an amount not exceeding three per 
 centum per annum calculated upon the amount so paid from the 
 date of such payment to the date now fixed by law for such pay- 
 ment ; but no such credit shall be allowed on payments in excess of 
 taxes determined to be due, nor on payments made after the expira-' 
 tion of four and one-half months after the close of the taxable year. 
 All penalties provided by existing law for failure to pay tax when 
 due are hereby made applicable to any failure to pay the tax at the 
 time or times required in this section. 
 
 Interest at rate of 3 per cent per annum allowed on advance payments 
 must be considered income and accounted for as such by taxpayer in re- 
 turn for year in wliicli interest is allowed. (T. D. 2695.) 
 
 Certificates of indebtedness; nnccrtlfied cIiccIes. 
 
 Sec. 1010. That under rules and regulations prescribed by the 
 Secretary of the Treasury, collectors of internal revenue may receive, 
 at par and accrued interest, certificates of indebtedness issued under 
 section six of the Act entitled " An Act to authorize an issue of bonds 
 to meet expenditures for the national security and defense, and, for 
 the purpose of assisting in the prosecution of the war, to extend 
 credit to foreign governments, and for other purposes," approved 
 April twenty- fourth, nineteen hundred and seventeen, and any sub- 
 sequent Act or Acts, and uncertified checks in payment of income 
 and excess-profits taxes, during such time and under such regula- 
 tions as the Commissioner of Internal Revenue, with the approval 
 of the Secretary of the Treasury, shall prescribe ; but if a check so re- 
 ceived is not paid by the bank on which it is drawn the person by 
 whom such check has been tendered shall remain liable for the pay- 
 ment of the tax and for all legal penalties and additions the same as 
 if such check had not been tendered. 
 
 Instructions relative to acceptance of certificates of indebtedness for 
 taxes; schedule sho©k(lf;2e«#i/W /Mfeffi5Stifli®able any day from February 
 15 to June 25, 1918. \T. D. 2656.) 
 
890 APPENDIX. 
 
 TITLE XII.— INCOME TAX AMENDMENTS. 
 
 Act of September 8, 1910 (sees. S, 4). 
 
 Sec. 1200. Thai subdivision (a) of section two of such Act of Sep- 
 tember eighth, nineteen hundred and sixteen, is hereby amended to 
 read as follows : 
 
 " (a) That, subject only to such exemptions and deductions as are 
 hereinafter allowed, the net income of a taxable person shall include 
 ^ains, profits, and income, derived from salaries, wages, or compensa- 
 tion for personal service of whatever kind and in whatever form paid, 
 or from professions, vocations, businesses, trade, commerce, or sales, 
 or dealings in property, whether real or personal, growing out of the 
 ownership or use of or interest in real or personal property, also from 
 interest, rent, dividends, securities, or the transaction of any busi- 
 ness carried on for gain or profit, or gains or profits and income de- 
 rived from any source whatever." 
 
 Section four of such Act of September eighth, nineteen hundred 
 and sixteen, is hereby amended to read as follows: 
 
 " Sec. 4. The following income shall be exempt from the provisions 
 of this title : 
 
 "The proceeds of life insurance policies paid to individual bene- 
 ficiaries upon the death of the insured; the amount received by the 
 insured, as a return of premium or premiums paid by him under 
 life insurance, endowment, or annuity contracts, either during the 
 term or at the maturity of the term mentioned in the contract or upon 
 surrender of the contract; the value of property acquired by gift, 
 bequest, devise, or descent (but the income from such property shall 
 be included as income) ; interest upon the obligations of a State or 
 any political subdivision thereof or upon the obligations of the 
 United States (but, in the case of obligations of the United States 
 issued after September first, nineteen hundred and seventeen, only 
 if and to the extent provided in the Act authorizing the issue thereof) 
 or its possessions or securities issued under the provisions of the Fed- 
 eral Farm L/oan Act of July seventeenth, nineteen hundred and six- 
 teen ; the compensation of the present President of the United States 
 during the term for which he has been elected and the judges of the 
 supreme and inferior courts of the United States now in office, 
 and the compensation of all officers and employees of a State, or any 
 political subdivision thereof, except when such compensation is paid 
 by the United States Government." 
 
 Application of income and excess profits taxes to Liberty bonds issued 
 or to be issued under act of September 24, 1917. (T. D. 2541.) 
 
 Taxability of salaries received under funds of Smith-Lever Act of 
 May 8, 1914. (T. D. 2668.) 
 
 Revision of articles 83 and 84 of Eegulations, No. 33, relative to interest 
 upon obligations of State or political subdivision thereof. (T. D. 2715.) 
 
 Determination of amount of gain or loss on sale of stocfe received as 
 stock dividend; paragraphs 28 and 60 of Regulations, No. 33, revised. 
 (T. D. 2734.) 
 
 Tax exemption of Liberty bonds and Victory notes. (T. D. 2836.) 
 
 Income from not to exceed $5,000 face value of Liberty bonds, Treas- 
 ury certificates of indebtedness, and War Saving certificates authorized 
 by the act of September 24, 1917, is exempt from taxes. (T. D. 2585.) 
 
 Digitized by Microsoft® 
 
APPENDIX. 891 
 
 Act of ScptcmlbiiT 8, 1916 (sec. 6). 
 
 Sec. 1201. (1) That jjaragraplos second and third of subdivision 
 (a) of section five of such Act of September eighth, nineteen hundred 
 and sixteen, are hereby amended to read as follows : 
 
 "Second. 'AH interest paid within the year on his indebtedness 
 except on indebtedness incurred for the purchase of obligations or 
 securities the interest upon which is exempt from taxation as income 
 under this title ; 
 
 " Third. Taxes paid within the year imposed by the authority of 
 the United States (except income and excess profits taxas) or of its 
 Territories, or possessions, or any foreign country, or by the authority 
 of any State, county, school district, or municipality, or other taxing 
 subdivision of any State, not including those assessed against local 
 benefits ;" 
 
 (2) That section five of such Act of September eighth, nineteen 
 hundred and sixteen, is hereby amended by adding at the end of sub- 
 division (a) a further paragraph, numbered nine, to read as follows: 
 " Ninth. Contributions or gifts actually made within the year to 
 corporations or associations organized and operated exclusively for 
 religious, charitable, scientific, or educational purposes, or to societies 
 for the prevention of cruelty to children or animals, no part of the 
 net income of which inures to the benefit of any private stockholder 
 or individual, to an amount not in excess of fifteen per centum of the 
 taxpayer's taxable net income as computed without the benefit of 
 this paragraph. Such contributions or gifts shall be allowable as 
 deductions only if verified under rules and regulations prescribed by 
 the Commissioner of Internal Eevenue, with the approval of the 
 Secretary of the Treasury." 
 
 Interest paid within year on indebtedness incurred for purchase of 
 Liberty 4 per cent bonds deductible in computing net income subject to 
 surtaxes and excess profits taxes. (T. D..2541.) 
 
 Investments in obligations of United States by corporation or partner- 
 ship from capital, surplus, or undivided profits will be included in in- 
 vested capital for purpose of computing deduction and rate of taxation 
 for excess profits tax, but undivided profits earned during taxable year 
 can not be included in Invested capital. (T. D. 2541.) 
 
 Act ot September 8, 1916 (sec. 6). 
 
 Sec 1202. That (1) paragraphs second and third of subdivision 
 (a) of section six of such Act of September eighth, nineteen hundred 
 and sixteen, are hereby amended to read as follows : 
 
 " Second. The proportion of all interest paid withm the year by 
 such person on his indebtedness (except on indebtedness incurred for 
 the purchase of obligations or securities the interest upon which is 
 exempt from taxation as income under this title) which the gross 
 amount of his income for the year derived from sources withm the 
 United States bears to the gross amount of his income for the year 
 derived from all sources within and without the United States, but 
 this deduction shall be allowed only if such person includes m the 
 return required by section eight all the information necessary for its 
 
 " Third Taxes paid within the year imposed by the authority of 
 the United States (exept income and excess profits taxes) , or of its 
 
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892 
 
 APPENDIX, 
 
 Territories, or possessions, or by the authority of any State, county, 
 school district, or municipality', or other taxing subdivision of any 
 State, paid within the United States, not including those assessed 
 against local benefits ;" 
 
 (2) Section six of such Act of September eighth, nineteen hundred 
 and sixteen, is also further amended by adding a new subdivision 
 to read as follows : 
 
 "(c) A nonresident alien individual shall receive the benefit of the 
 deductions and credits provided for in this section only by filing or 
 causing to be filed with the collector of internal revenue a true and 
 accui-ate return of his total income, received from all sources, corpo- 
 rate or otherwise, in the United States, in the manner prescribed by 
 this title ; and in case of his failure to file such return the collector 
 shall collect the tax on such income, and all property belonging to 
 such nonresident alien individual shall be liable to distraint for 
 the tax." 
 
 Act of SeptcmlbcT 8, 1916 (sec. 7). 
 
 Sec. 1203. (1) That section seven of such Act of September eighth, 
 nineteen hundred and sixteen, is hereby amended to read as follows : 
 
 " Sec. 7. That for the purpose of the normal tax only, there shall be 
 allowed as an exemption in the nature of a deduction from the amount 
 of the net income of each citizen or resident of the United States, 
 ascertained as provided herein, the sum of $3,000, plus $1,000 addi- 
 tional if the person making the return be a head of a family or a 
 married man with a wife living with him, or plus the sum of $1,000 
 additional if the person making the return be a married woman with 
 a husband living with her ; but in no event shall this additional 
 exemption of $1,000 be deducted by both a husband and a wife: 
 Provided, That only one deduction of $4,000 shall be made from the 
 aggregate income of both husband and wife when living together: 
 Provided fv/rther, That if the person making the return is the head of 
 a family tnere shall be an additional exemption of $200 for each child 
 dependent upon such person, if under eighteen years of age, or if 
 incapable of self-support because mentally or physically defective, 
 but this provision shall operate only in the case of one parent in the 
 same family : Provided further, Tliat guardians or trustees shall be 
 allowed to make this personal exemption as to income derived from 
 the property of which such guardian or trustee has charge in favor of 
 each ward or cestui que trust: Provided further. That in no event 
 shall a ward or cestui que trust be allowed a greater personal exemp- 
 tion than as provided in this section, from the amount of net income 
 received from all sources. There shall also be allowed an exemption 
 from the amount of the net income of estates of deceased citizens 
 or residents of the United States during the period of administration 
 or settlement, and of trust or other estates of citizens or residents' 
 of the United States the income of which is not distributed annually 
 or regularly under the provisions of subdivision (b) of section two, 
 the sum of $3,000, including such deductions as are allowed under 
 section five." 
 
 (2) Subdivision (b) of section seven of such Act of September 
 eighth, nineteen hundred and sixteen, is hereby repealed. 
 
 Digitized by Microsoft® 
 
APPENDIX. 893 
 
 Act of September 8, 1916 (sec. 8). 
 
 Sec. 1204. (1) That subdivisions (c) and (e) of section eight of 
 such Act of September eighth, nineteen hundred and sixteen, are 
 hereby amended to read as follows : 
 
 " (c) Guardians, trustees, executors, administrators, receivers, con- 
 servators, and all persons, corporations, or associations, acting in any- 
 fiduciary capacity, shall make and render a return of the income of 
 the person, trust, or estate for whom or which they act, and be sub- 
 ject to all the provisions of this title which apply to individuals. 
 Such fiduciary shall make oath that he has sufficient knowledge of 
 the affairs of such person, trust, or estate to enable him to make such 
 return and that the same is, to the best of his knowledge and belief, 
 true and correct, and be subject to all the provisions of this title 
 which apply to individuals : Provided, That a return made by one of 
 two or more joint fiduciaries filed in the district where such fiduciary 
 resides, under such regulations as the Secretary of the Treasury may 
 prescribe, shall be a sufficient compliance with the requirements of 
 this paragraph : Provided further. That no return of income not ex- 
 ceeding $3,000 shall be required except as in this title otherwise 
 provided. 
 
 " _(e) Persons carrying on business in partnership shall be liable 
 for income tax only in their individual capacity, and the share of the 
 profits of the partnership to which any taxable partner would be 
 entitled if the same were divided, whether divided or otherwise, shall 
 be returned for taxation and the tax paid under the provisions of 
 this title : Provided, That from the net distributive interests on which 
 the individual members shall be liable for tax, normal and additional, 
 there shall be excluded their proportionate shares received from 
 interests on the obligations of a State or any political or taxing sub- 
 division thereof, and upon the obligations of the United States (if 
 and to the extent that it is provided in the Act authorizing the issue 
 of such obligations of the IJnited States that they are exempt from 
 taxation), and its possessions, and that for the purpose of computing 
 the normal tax there shall be allowed a credit, as provided by sec- 
 tion five, subdivision (b), for their proportionate share of the profits 
 derived from dividends. Such partnership, when requested by the 
 Commissioner of Internal Revenue or any district collector, shall 
 render a correct return of the earnings, profits, and income of the 
 partnership, except income exempt under section four of this Act, 
 setting forth the item of the gross income and the deductions and 
 credits allowed by this title, and the names and addresses of the in- 
 dividuals who would be entitled to the net earnings, profits, and in- 
 come, if distributed. A partnership shall have the same privilege 
 of fixing and making returns upon the basis of its own fiscal year as 
 is accorded to corporations under this title. If a fiscal year ends 
 during nineteen hundred and sixteen or a subsequent calendar year 
 for which there is a rate of tax different from the rate for the pre- 
 ceding calendar year, then (1) the rate for such preceding calendar, 
 year shall apply to an amount of each partner's share of such part- 
 nership profits equal to the proportion which the part of such fiscal 
 year falling within such calendar year bears to the full fiscal year, 
 and (2) the rate for the calendar year during which such fiscal year 
 ends shall apply to thBi§fm&Wi^microsoft® 
 
8M~ 
 
 APPENDIX. 
 
 (2) Subdivision (d) of section eight of such Act of September 
 eighth, nineteen hundred and sixteen, is hereby repealed. 
 
 Act of Scptcmticr 8, 1916 (sec. 9). 
 
 Sec. 1205. (1) That subdivisions (b), (c), (f), and (g) of section 
 nine of such Act of September eighth, nineteen hundred and sixteen, 
 are hereby amended to read as f oUovrs : 
 
 "(b) All persons, corporations, partnerships, associations, and 
 insurance companies, in whatever capacity acting, including lessees 
 or mortgagors of real or personal property, trustees acting in any 
 trust capacity, executors, administrators, receivers, conservators, 
 employers,- and all officers and employees of the United States, having 
 the control, iteceipt, custody, disposal, or payment of interest, rent, 
 salaries, wages, premiums, annuities, compensation, remuneration, 
 emoluments, or other fixed or determinable annual or periodical 
 gains, profits, and income of any nonresident alien individual, other 
 than income derived from dividends on capital stock, or from the net 
 earnings of a corporation^ joint-stock company or association, or 
 insurance company, which is taxable upon its net income as provided 
 in this title, are hereby authorized and required to deduct and with- 
 hold from such annual or periodical gains, profits, and incomes such 
 sum as will be sufficient to pay the normal tax imposed thereon by 
 this title, and shall make return thereof on or before March first of 
 each year and, on or before the time fixed by law for the payment of 
 the tax, shall pay the amount withheld to the officer of the United 
 States Government authorized to receive the same; and they are 
 each hereby made personally liable for such tax, and they are each 
 hereby indemnified against every person, corporation, partnership, 
 association, or insurance company, or demand whatsoever for all 
 payments which they shall make in pursuance and by virtue of this 
 title. 
 
 "(c) The amount of the normal tax hereinbefore imposed shall 
 also be deducted and withheld from fixed or determinable annual or 
 periodical gains, profits and income derived from interest upon 
 iionds and mortgages, or deeds of trust or other similar obligations 
 of corporations, joint-stock companies, associations, and insurance 
 companies, (if such bonds, mortgages, or other obligations contain a 
 contract or provision by which the obligor agrees to pay any portion 
 of the tax imposed by this title upon the obligee or to reimburse the 
 obligee for any portion of the tax or to pay the interest without 
 deduction for any tax which the obligor may be required or permitted 
 to pay thereon or to retain therefrom under any law of the United 
 States) whether payable annually or at shorter or longer periods and 
 whether such interest is payable to a non-resident alien individual 
 or to an individual citizen or resident of the United States, subject 
 to the provisions of the foregoing subdivision (b) of this section 
 requirin^g the tax to be withheld at the source and deducted from 
 annual income and returned and paid to the Government, unless the 
 person entitled to receive such interest shall file with the withholding 
 agent, on or before February first, a signed notice in writing claiming 
 the benefit of an exemption under section seven of this Title. 
 
 " (f ) All persons, corporations, partnerships, or associations, under- 
 taking as a matter of ^W^Q jQ* /^£r858^fe*^^ collection of foreign 
 
APPENDIX. 895 
 
 payments of interest or di\'idends by means of coupons, checks, or 
 bills of exchange shall obtain a license from the Commissioner of 
 Internal Eevenue, and shall be subject to such regiilations enabling 
 the Government to obtain the information required under this title, 
 as the Commissioner of Internal Revenue, with the approval of the 
 Secretary of tbe Treasury, shall prescribe; and whoever Imowingly 
 undertakes to collect such payments as aforesaid without having 
 obtained a license therefor, or without complying with such regula- 
 tions, shall be deemed guilty of a misdemeanor and for each offense 
 be fined in a sum not exceeding $5,000, or imprisoned for a term not 
 exceeding one year, or both, in the discretion of the court. 
 
 " (g) The tax herein imposed upon gains, profits, and incomes not 
 falling imder the foregoing and not returned and paid by virtue of 
 the foregoing or as otherwise provided by law shall be assessed by 
 personal return under rules and regulations to be prescribed by the 
 Commissioner of Internal ^Revenue and approved by the Secretary 
 of the Treasury. The intent and purpose of this title is that all 
 gains, profits, and income of a taxable class, as defined by this title, 
 shall be charged and assessed with the corresponding tax, normal 
 and additional, prescribed by this title, and said tax shall be paid 
 by the owner of such income, or the proper representative having 
 the receipt, custody, control, or disposal of the same. For the pur- 
 pose of this title ownership or liability shall be determined as of the 
 year for which a return is required to be rendered. 
 
 " The provisions of this section, except subdivision (c), relating to 
 the deduction and payment of the tax at the source of income shall 
 only apply to the normal tax hereinbefore imposed upon nonresident 
 alien individuals." 
 
 (2) Subdivisions (d) and (e) of section nine of such Act of Sep- 
 tember eighth, nineteen hundred and sixteen, are hereby repealed. 
 
 Interest on bank deposits paid to nonresident alien individuals held 
 siiT)ject to withholding provisions of this act. (T. Ds. 2G2S. 2G52.) 
 
 Act ot September 8, 1916 (sec 10). 
 
 Sec. 1206. (1) That the first paragraph of section ten of such Act 
 of September eighth, nineteen hundred and sixteen, is hereb}' 
 amended to read as follows : 
 
 "Sec. 10. (a) That there shall be levied, assessed, collected, and 
 paid annually upon the total net income received in the preceding 
 calendar year from all sources by every corporation, joint-stock 
 company or association, or insurance company, organized, in the 
 United States, no matter how created or organized, but not includ- 
 ing partnerships, a tax of two per centum upon such income; and 
 a like tax shall be levied, assessed, collected, and paid annually 
 upon the total net income received in the preceding calendar year 
 from all sources within the United States by every corporation, 
 joint-stock company or association, or insurance company, organized, 
 authorized, or existing under tlie laws of any foreign country, includ- 
 ing interest on bonds, notes, or other interest-bearing obligations of 
 residents, corporate or otherwise, and including the income derived 
 from dividends on capital stock or from net earnings of resident 
 corporations, joint-stock companies or associations, or insurance 
 companies, whose net income is taxable under this title." 
 Digitized by Microsoft® 
 
896 
 
 APPENDIX. 
 
 (2) Section ten of such Act of September eighth, nineteen hundred 
 and sixteen, is hereby further amended by adding a new subdivision 
 as follows: 
 
 '' (b) In addition to the income tax imposed by subdivision (a) oi 
 this section there shall be levied, assessed, collected, and paid an- 
 nually an additional tax of ten per centum upon the amount, remain- 
 ing undistributed six months after the end of each calendar or fiscal 
 year, of the total net income of every corporation, joint-stock com- 
 pany or association, or insurance company, received during the year, 
 as determined for the purposes of the tax imposed by such subdivi- 
 sion (a), but not including the amount of any income taxes paid by 
 it within the year imposed by the authority of the United States. 
 
 " The tax imposed by this subdivision shall not apply to that por- 
 tion of such undistributed net income which is actually invested and 
 employed in the business or is retained for employment in the reason- 
 able requirements of the business or is invested in obligations of the 
 United States issued after September first, nineteen hundred and 
 seventeen : Provided, That if the Secretary of the Treasury ascertains 
 and finds that any portion of such amount so retained at any time 
 for employment in the business is not so employed or is not reason- 
 ably required in the business a tax of fifteen per centum shall be 
 levied, assessed, collected, and paid ther/eon. 
 
 "The foregoing tax rates shall apply to the undistributed net in- 
 come received by every taxable corporation, joint-stock company or 
 association, or insurance company in the calendar year nineteen 
 hundred and seventeen and in each year thereafter, except that if 
 it has fixed its own fiscal year under the provisions of existing law, 
 the foregoing rates shall apply to the proportion of the taxable im- 
 distributed net income returned for the fiscal year ending prior to 
 December thirty-first, nineteen hundred and seventeen, which the 
 period between January first, nineteen hundred and seventeen, and 
 the end of such fiscal year bears to the whole of such fiscal year." 
 
 Rulings relative to additional tax on undistributed earnings of corpo- 
 ration. (T. D. 2700.) 
 
 Article 62 of Regulations No. 33 and article 2 of Regulations No. 41, 
 regarding limited partnerships, revised. (T. D. 2711.) 
 
 Synopsis of decisions relating to tax on undistributed net income of cor- 
 porations, joint-stock companies and associations, and insurance compa- 
 nies. (T. Ds. 2736, 2763.) 
 
 Cooperative merchandising organizations are subject to provision of 
 act ; periodical refunds to purchasers to be regarded as discounts, reduc- 
 ing.organization's net income; recipient need not return them as income 
 but should treat sums so received as rebates. (T. D. 2737.) 
 
 Act of Septemlbcr 8, 1916 (sec. 12). 
 
 Sec. 1207. (1) That paragraphs third and fourth of subdivision 
 (a) of section twelve of such Act of September eighth, nineteen hun- 
 dred and sixteen, are hereby amended to read as follows : 
 
 " Third. The amount of interest paid within the year on its indebt- 
 edness (except on indebtedness incurred for the purchase of obliga- 
 tions or securities the interest upon which is Exempt from taxation 
 as income under this title) to an amount of such indebtedness not in 
 excess of the sum of (a) the entire amount of the paid-up capital 
 stock outstanding at the close of the year, or, if no capital stock, the 
 entire amount of capitp^^g$^^q^9|/^($^/^siness at the close of the 
 
APPENDIX. 897 
 
 year, and (b) one-half of its interest-bearing indebtedness then out- 
 standing : Provided., That for the purpose of this title preferred capi- 
 tal stock shall not be considered interest-bearing indebtedness, and 
 interest or dividends paid upon this stock shall not be deductible 
 from gross income: Provided further., That in cases wherein shares 
 of capital stock are issued without par or nominal value, the amount 
 of paid-up capital stock, within the meaning of this section, as repre- 
 sented by such shares, will be the amount of cash, or its equivalent, 
 paid or transferred to the corporation as a consideration for such 
 shares : Provided further.. That in the case of indebtedness wholly se- 
 cured by property collateral, tangible or intangible, the subject of 
 sale or hypothecation in the ordinary business of such corporation, 
 joint-stock company or association as a dealer only in the property 
 constituting such collateral, or in loaning the funds thereby pro- 
 cured, the total interest paid by such corporation, company, or asso- 
 ciation within the year on any such indebtedness may be deducted as 
 a part of its expenses of doing business, but interest on such indebt- 
 edness shall only be deductible on an amount of such indebtedness 
 not in excess of the actual value of such property collateral : Provided 
 further., That in the case of bonds or other indebtedness, which have 
 been issued with a guaranty that the interest payable thereon shall 
 be free from taxation, no deduction for the payment of the tax herein 
 imposed, or any other tax paid pursuant to such guaranty, shall be 
 allowed; and in the case of a bank, banking association, loan or trust 
 company, interest paid within the year on deposits or on moneys 
 received for investment and secured by interest-bearing certificates 
 of indebtedness issued by such bank, banking association, loan or 
 trust company shall be deducted ; 
 
 "Fourth. Taxes paid within the year imposed by the authority 
 of the United States (except income and excess profits taxes), or of 
 its Territories, or possessions, or any foreign country, or by the 
 authority of any State, county, school district, or municipality, or 
 other taxing subdivision of any State, not including those assessed 
 against local benefits." 
 
 (2) Paragraphs third and fourth of subdivision (b) of section 
 twelve of such Act of September eighth, nineteen hundred and six- 
 teen, are hereby amended to read as follows : 
 
 "Third. The amoimt of interest paid within the year on its indebt- 
 edness (except on indebtedness incurred for the purchase of obliga- 
 tions or securities the interest upon which is exempt from taxation 
 as income under this title) to an amount of such indebtedness not in 
 excess of the proportion of the sum of (a) the entire amount of the 
 paid-up capital stock outstanding at the close of the year, or, if no 
 capital stock, the entire amount of the capital employed in the busi- 
 ness at the close of the year, and (b) one-half of its interest-bearing 
 indebtedness then outstanding, which the gross amount of its income 
 for the year from business transacted and capital invested within 
 the United States bears to the gross amount of its income derived 
 from all sources within and without the United States: Provided^ 
 That in the case of bonds or other indebtedness which have been 
 issued with a guaranty that the interest payable thereon shall be 
 free from taxation, no deduction for the payment of the tax herein 
 
 140184°-20 ^'^ Digitized by Microsoft® 
 
.8,98 
 
 APPENDIX. 
 
 imposed or any other tax paid pursuant to such ^aranty shall be 
 allowed; and in case of a bank, banking association, loan or trust 
 company, or branch thereof, interest paid within the year on deposits 
 by or on moneys received for investment from either citizens or 
 residents of the United States and secured by interest-bearing certifi- 
 cates of indebtedness issued by such bank, banking association, loan 
 or trust company, or branch thereof; 
 
 "Fourth. Taxes paid within the year imposed by the authority of 
 the United States (except income and excess profits taxes), or of its 
 Territories, or possessions, or by the authority of any State, county, 
 school district, or municipalityj or other taxing subdivision of any 
 State, paid within the United States, not including those assessed 
 against local benefits." 
 
 Act of September 8, 1916 (sec. 13). 
 
 Sec. 1208. That subdivision (e) of section thirteen of such Act of 
 September eighth, nineteen hundred and sixteen, is hereby amended 
 to read as follows: 
 
 ''(e) All the provisions of this title relating to the tax authorized 
 and required to be deducted and withheld and paid to the officer of 
 the United States Government authorized to receive the same from 
 the income of nonresident alien individuals from sources within the 
 United States shall be made applicable to the tax imposed by sub- 
 division (a) of section ten upon incomes derived from interest upon 
 bonds and mortgages or deeds of trust or similar obligations of 
 domestic or other resident corporations, joint-stock companies or 
 associations, and insurance companies by nonresident alien firms, 
 copartnerships, companies, corporations, joint-stock companies or 
 associations, and insurance companies, not engaged in business or 
 trade within the United States and not having any office or place of 
 business therein." 
 
 Act or Scptcmlbcr 8, 1916 Csec. 18). 
 
 Sec. 1209. That section eighteen of such Act of September eighth, 
 nineteen hundred and sixteen, is hereby amended to read as follows : 
 
 " Sec. 18. That any person, corporation, partnership, association, or 
 insurance company, liable to pay the tax, to make a return or to 
 supply information required under this title, who refuses or neglects 
 to pay such tax, to make such return or to supply such information 
 at the time or times herein specified in each year, shall be liable, 
 except as otherwise specially provided in this title, to a penalty of 
 not less than $20 nor more than $1,000. Any individal or any 
 officer of any corporation, partnership, association, or insurance com- 
 pany, required by law to make, render, sign, or verify any return or 
 to supply any information, who makes any false or fraudulent return 
 or statement with intent to defeat or evade the assessment required 
 by this title to be made, shall be guilty of a misdemeanor, and shall 
 be fined not exceeding $2,000 or be imprisoned not exceeding one 
 year, or both, in the discretion of the court, with the costs of prose- 
 cution : Provided, That where any tax heretofore due and payable has 
 been duly paid by the taxpayer, it shall not be re-collected from any 
 withholding agent required to retain it at its source, nor shall any 
 
 Digitized by Microsoft® 
 
APPENDIX. 899 
 
 penalty be imposed or collected in such cases from the taxpayer, or 
 such withholding agent whose duty it was to retain it, for failure to 
 return or pay the same, unless such failure was fraudulent and for 
 the purpose of evading payment." 
 
 Act of Sciitcmhcr S, 1916 (sec. 26) ; returns as to dltldcnds paid. 
 
 Sec. 1210. That section twenty-six of such Act of September eighth, 
 nineteen hundred and sixteen, as amended by the Act entitled "An 
 Act to provide increased revenue to defray the expenses of the in- 
 creased appropriations for the Army and Navy and the extensions of 
 fortifications, and for other purposes," approved March third, nine- 
 teen hundred and seventeen, is hereby amended to read as follows : 
 
 "Sec. 26. Every corporation, joint-stock company or association, 
 or insurance company subject to the tax herein imposed, when 
 required by the Commissioner of Internal Eevenue, shall i-ender a 
 correct return, duly verified under oath, of its payments of dividends, 
 whether made in cash or its equivalent or in stock, including the 
 names and addresses of stockholders and the number of shares 
 owned by each, and the tax yeai's and the applicable amounts in 
 which such dividends were earned, in such form and manner as may 
 be prescribed by the Commissioner of Internal Eevenue, with the 
 approval of the Secretary of the Treasury." 
 
 Act of September 8, 1916 (sees. 27-32 added). 
 
 Sec. 1211. That Title I of such Act of September eighth, nineteen 
 Hundred and sixteen, is hereby amended by adding to Part III six 
 new sections, as follows: 
 
 " Sec. 27; That every person, corporation, partnership, or associa- 
 tion, doing business as a broker on any exchange or board of trade 
 or other similar place of business shall, when required by the Com- 
 missioner of Internal Revenue, render a correct return duly verified 
 under oath, under such rules and regulations as the Commissioner of 
 Internal Revenue, with the approval of the Secretary of the Treas- 
 ury, may prescribe, showing the names of customers for whom such 
 person, corporation, partnership, or association has transacted any 
 business, with such details as to the profits, losses, or other informa- 
 tion which the commissioner may require, as to each of such cus- 
 tomers, as will enable the Commissioner of Internal Revenue to deter- 
 mine whether all income tax due on profits or gains of such customere 
 has been paid. 
 
 " Seo. 28. That all persons, corporations, partnerships, associa- 
 tions, and insurance companies, in whatever capacity acting, includ- 
 ing lessees or mortgagors of real or personal property, trustees act- 
 ing in any trust capacity, executors, administrators, receivers, con- 
 servators, and employers, making payment to another person, cor- 
 poration, partnership, association, or insurance company, of interest, 
 rent, salaries, wages, premiums, annuities, compensation, remunera- 
 tion, emoluments, or other fixed or determinable gains, profits, and 
 income (other than payments described in sections twenty-six and 
 twenty-seven), of $800 or more in any taxable year, or, in the case 
 of such payments made by the United States, the officers or em- 
 ployees of the United States having information as to such payments 
 
 Digitized by Microsoft® 
 
900 APPENDIX. 
 
 and required to make returns in regard thereto by the regulations 
 hereinafter provided for, are hereby authorized and required to render 
 a true and accurate return to the Commissioner of Internal Reve- 
 nue, under such rules and regulations and in such form and manner 
 as may be prescribed by him, with the approval of the Secretary of 
 the Treasury, setting forth the amount of such gains, profits, and in- 
 come, and the name and address of the recipient of such payment: 
 Provided, That such returns shall be required, regardless of amounts, 
 in the case of payments of interest upon bonds and mortgag:es or 
 deeds of trust or other similar obligations of corporations, joint- 
 stock companies, associations, and insurance companies, and in the 
 case of collections of items (not payable in the United States) of in- 
 terest upon the bonds of foreign countries and interest from the 
 bonds and dividends from the stock of foreign corporations by per- 
 sons, corporations, partnerships, or associations, undertaking as a 
 matter of business or for profit the collection of foreign payments of 
 such interest or dividends by means of coupons, checks, or bills of 
 exchange. 
 
 " When necessary to make effective the provisions of this section 
 the name and address of the recipient of income shall be furnished 
 upon demand of the person, corporation, partnership, association, or 
 insurance company paying the income. 
 
 " The provisions of this section shall apply to the calendar year 
 nineteen hundred and seventeen and each ca,lendar year thereafter, 
 but shall not apply to the payment of interest on obligations of the 
 United States. 
 
 Instructions relating to information at source. (T. D. 2670.) 
 Article 35 of Regulations No. 33 revised by dettning foreign items and 
 
 regulating furnishing of information by bank or agency collecting sucli 
 
 items. (T. D. 2716.) 
 
 " Sec. 29. That in assessing income tax the net income embraced 
 in the return shall also be credited with the amount of any excess 
 profits tax imposed by Act of Congress and assessed for the same 
 calendar or fiscal year upon the taxpayer, and, in the case of a mem- 
 ber of a partnership, with his proportionate share of such excess 
 profits tax imposed upon the partnership. 
 
 " Sec. 30. That nothing in section II of the Act aj^roved October 
 third, nineteen hundred and thirteen, entitled 'An Act to reduce 
 tariff duties and to provide revenue for the Government, and for 
 other purposes,' or in this title, shall be construed as taxing the 
 income of foreign governments received from investments in the 
 United States in stocks, bonds, or other domestic securities, owned 
 by such foreign governments, or from interest on deposits in banks 
 in the United States of moneys belonging to foreign governments. 
 
 " Sec. 31. (a) That the term ' dividends ' as used in this title shall 
 be held to mean any distribution made or ordered to be made by a 
 corporation, joint-stock company, association, or insurance company, 
 out of its earnings or profits accrued since March first, nineteen 
 hundred and thirteen, and payable to its shareholders, whether in 
 cash or in stock of the corporation, joint-stock company, association, 
 or insurance company, which stock dividend shall be considered 
 income, to the amount of the earnings or profits so distributed. 
 
 Digitized by Microsoft® 
 
APPENDIX. 901 
 
 "(b) Any distribution made to the shareholders or members of a 
 corporation, joint-stock company, or association, or insurance com- 
 pany, in the year nineteen hundred and seventeen, or subsequent tax 
 years, shall he deemed to have been made from the most recently 
 accumulated undivided profits or surplus, and shall constitute a part 
 of the annual income of the distributee for the year in which re- 
 ceived, and shall be taxed to the distributee at the rates prescribed 
 by law for the years in which such profits or surplus were accumu- 
 lated by the corporation, joint-stock company, association, or insur- 
 ance company, but nothing herein shall be construed as taxing any 
 earnings or profits accrued prior to March first, nineteen hundred 
 and thirteen, but such earnings or profits may be distributed in 
 stock dividends or otherwise, exempt from the tax, after the dis- 
 tribution of earnings and profits accrued since March first, nineteen 
 hundred and thirteen, has been made. This subdivision shall not 
 apply to any distribution made prior to August sixth, nineteen hun- 
 dred and seventeen, out of earnings or profits accrued prior to March 
 first, nineteen hundred and thirteen. 
 
 Burden is upon corporation seeking to establisli distribution in cur- 
 rent year of profits of preceding taxable year to show that earnings of 
 current year have been distributed ; corporation may treat undivided 
 profits and surplus of current year as reduced liy payments for Income 
 and excess profits tax ; restrictions as to distribution of earnings of 
 previous taxable years do not apply to use of earnings for Investments 
 by corporation ; amounts invested In obligations of United States Issued 
 after September 1, 1917, may be treated as made from such earnings as 
 corporation may designate. (T. D. 2700.) 
 
 Determination of amount of gain or loss on sale of stock received as 
 stock dividend ; paragraphs 28 and 60 of Regulations No. 33, revised. 
 (T. D. 2734.) 
 
 Basis of taxation of stock dividends. (T. D. 2659.) 
 
 " Sec. 32. That premiums paid on life insurance policies covering 
 the lives of oiEcers, employees, or those financially interested in any 
 trade or business conducted by an individual, partnership, corpora- 
 tion, joint-stock company or association, or insurance company, shall 
 not be deducted in computing the net income of such individual, cor- 
 poration, joint-stock company or association, or insurance company, 
 or in computing the profits of such partnership for the purposes of 
 subdivision (e) of section nine." 
 
 Belcaslng amonnt of tax retained by withholding agent. 
 
 Sec. 1212. That any amount heretofore withheld by any with- 
 holding agent as required by Title I of such Act of September eighth, 
 nineteen hundred and sixteen, on account of the tax imposed upon 
 the income of any individual, a citizen or resident of the United 
 States, for the calendar year nineteen hundred and seventeen, except 
 in the cases covered by subdivision (c) of section nine of such Act, as 
 amended by this Act, shall be released and paid over to such indi- 
 vidual, and the entire tax upon the income of such individual for 
 such year shall be assessed and collected in the manner prescribed by 
 such Act as amended by this Act. 
 
 Release of tax withheld at source in cases where substitute cer- 
 tificates (Form 10.59) were used. (T. D. 2635.) 
 
 Digitized by Microsoft® 
 
902 APPENDIX. 
 
 TITLE XIIL— GENERAL PEOVISIONS. 
 
 Difcct of partial invalidity. 
 
 Sec. 1300. That if any clause, sentence, paragraph, or part of this 
 Act shall for any reason be adjudged by any court of competent 
 jurisdiction to be invalid, such judgment shall not affect, impair, or 
 invalidate the remainder of said Act, but shall be confined in its 
 operation to the clause, sentence, paragraph, or part thereof directly 
 involved in the controversy in which such judgment shall have been 
 rendered. 
 
 Bcpeal of Title I, act of Marcli 8, 1917. 
 
 Sec. 1301. That Title I of the Act entitled "An Act to provide 
 increased revenue to defray the expenses of the increased appropria- 
 tions for the Army and Navy and the extension of fortifications, and 
 for other purposes," approved March third, nineteen hundred and 
 seventeen, be, and the same is hereby, repealed. 
 
 Date cScctive. 
 
 Sec. 1302. That unless otherwise herein specially provided, this 
 Act shall take effect on the day following its passage. 
 
 citation of act. 
 
 ■Sec. 1303. [Added hy sec. llfil^, cunt of February 2i, 1919 {4.O Stat, 
 1057) .] That this Act may be cited as the " Revenue Act of 191T." 
 
 Digitized by Microsoft® 
 
Section. 
 
 Page. 
 
 3369 
 
 381 
 
 4 
 
 348 
 
 22,23 
 
 358, 359 
 
 3220 
 
 137 
 
 221-3223 
 
 142-144 
 
 1,2 
 
 285 
 
 15 
 
 610 
 
 214, 250 
 
 486, 506 
 
 3221 
 
 142 
 
 7 
 
 56,64 
 
 323 
 
 55 
 
 3155 
 
 88 
 
 3173, 
 
 104, 108, 
 
 1,3237 
 
 156 
 
 INDEX 
 
 A. 
 ABANDONMENT— 
 
 Tobacco, cigars, etc., disposition 
 
 ABATEMENT— 
 
 Liquor nmsance (Act Oct. 28, 1919, Title I) 
 
 (Act Oct. 28, 1919, Title II) 
 
 Taxes, Commissioner's power 
 
 Distilled spirits accidentally destroyed 3221- 
 
 LoBs by leakage ". (Act Dec. 20, 1879) 
 
 (Act May 28, 1880) 
 
 Income taxes (Act Feb. 24, 1919) 
 
 Secretary of Treasury's power 
 
 ABBREVIATIONS— 
 
 Used in this volume 8 
 
 ABSCONDING— 
 
 Taxpayers, credit of collector with taxes of 3218 136 
 
 ABSENCE- 
 
 Clerks or employees (Act Mar. 15, 1898) 
 
 Commissioner of Internal Revenue 
 
 Storekeepers, temporary, appointment 
 
 Taxpayers who fail to file returns i ■y-.jf. 
 
 Income tax, extension of time to file returns (Act Feb . 
 
 24,1919) 227 495 
 
 ABSTRACT- 
 
 Collections, etc. , laying before Congress 261 66 
 
 ACCIDENT— 
 
 Distilled spirits destroyed 3221-3223 142-144 
 
 Stamps lost or destroyed 3315 270 
 
 ACCOUNTS— 
 
 Abstract of, furnishing Congress by Secretary of the Treasury 261 66 
 
 Adjustment in Treaisury Department 236 682 
 
 Collectors of internal revenue, adjustment according to fiscal 
 
 year 3146, 3147 76 
 
 Charges incurred in distraint sales 3192 121 
 
 Distraint for failure to account, etc 3217, 3625 135, 666 
 
 Goods in bond 3444 588 
 
 Quarterly (Act May 27, 1908) 1 130 
 
 Receipt of depository as voucher 321] 130 
 
 Stationery, postage, etr (Act Feb. 8, 1875) 13 79 
 
 Time for rendering 3212 132 
 
 Disbursing officers (Act Aug. 30, 1890) 4 663 
 
 Failure to account 3633 666 
 
 Distrained goods 3190 120 
 
 Distress ^^-arrant, accounts of collectors, etc., not 
 
 rendered 3625 666 
 
 Embezzlement, failure to render accounts (Act Mar. 4, 1909) 90 669 
 
 Officers or agents receiving public money 3622, 3623 663, 666 
 
 Payment of compensation to persons in arrears 1766 684 
 
 Separate, for different classes of receipts 239 66 
 
 Transmittal (Act July 31, 1894) 12 665 
 
 ACTS OF CONGRESS— 
 
 List of 27 
 
 Digitized by Microsoft® 903 
 
904 
 
 INDEX. 
 
 ACTIONS— 
 
 Appeal to Commissioner as condition precedent 
 
 Attorney General, authority to commence and conduct 
 proceedings (Act June 30, 1906) 
 
 Collectors, duty to prosecute for fines, penalties, etc 
 
 Commissioner to sanction 
 
 Compromises by Commissioner after commencement 
 
 Continuance 
 
 Delinquents for public money, suits against 
 
 Credits in suits by United States against individuals 
 
 Deputy collectors' bonds, on (Act Feb. 8, 1875) 
 
 Distraint proceedings. {See Distbaint. ) 
 
 Equity. (See Equity.) 
 
 Injunctions. (See Injunction.) 
 
 Internal revenue ofHcers, etc., damages for injuries received 
 in discharge of duties 
 
 Intoxicated person, injuries caused by (Act Oct. 28, 1919, 
 Title 11) 
 
 Jurisdiction. {See J urisdiction . ) 
 
 Limitations. {See Limitations.) 
 
 Money recovered by, payment 
 
 Name in which brought 
 
 Public money, recovery 
 
 Regulations, establishment by Commissioner 
 
 ADDITIONAL CLERKS— 
 
 Transfer to classified service (Act Apr. 28, 1902) 
 
 ADJOURNMENT S— 
 
 Distraint sale for taxes 
 
 Sales of real estate for taxes 
 
 ADMINISTRATORS— 
 
 Debts due United States, liability 
 
 Special tax liability < 
 
 ADMISSIONS— 
 Act February 24, 1919— 
 
 Agricultural fairs, exemptions 
 
 Assessment r 
 
 Brokers, rate of tax on tickets sold at increased price by. . . 
 
 Cabarets, rate of tax 
 
 Charitable organizations, exemptions _. 
 
 Children under 12 years of age admitted free, taxability 
 
 Collection of tax 
 
 Credits, overpayments or overcollections 
 
 Cruelty to children or animals, exemption in case of organi- 
 zation for prevention of 
 
 Definition - . - - 
 
 Educational organizations, exemption in case of 
 
 Employees admitted free, taxability 
 
 Excess of regular price, rate of tax on tickets sold in 
 
 Exemptions :----. 
 
 Fair associations, exemptions in case of 
 
 Free admissions, rate of tax 
 
 Hotels, rate of tax on tickets sold at 
 
 Lease of boxes or seats, rate of tax. 
 
 Military or naval forces of United States, exemptions 
 where proceeds of admissions are for benefit of persons in. 
 
 Municipal officers admitted free, taxability 
 
 News stands, rate of tax on tickets sold at 
 
 Payment, persons liable 
 
 Time and manner 
 
 Penalties, failure to pay, collect, etc., tax. 
 Afhii ' ' 
 
 Section. 
 3226 
 
 146 
 
 
 658 
 
 3213 
 
 132 
 
 3214 
 
 134 
 
 3229 
 
 149 
 
 3231 
 
 151 
 
 957 
 
 673 
 
 951 
 
 685 
 
 12 
 
 76 
 
 3171 
 20 
 
 3216 
 
 919, 3213 
 
 3624 
 
 3215 
 
 101 
 
 3.57 
 
 135 
 
 638, 132 
 
 666 
 
 134 
 
 Sale of ticket on which price, etc., is not printed. 
 
 Permanent use of boxes or seats, rate of tax 
 
 Price, printing on ticket 
 
 Digitized 'by Microsoft® 
 
 65 
 
 3190 
 
 120 
 
 3197 
 
 122 
 
 3467 
 
 686 
 
 3241 
 
 158 
 
 3244(5) 
 
 171 
 
 800(5) 
 
 540 
 
 1305 
 
 627 
 
 800(o) 
 
 539 
 
 800(a) 
 
 540 
 
 800(6) 
 
 540 
 
 800(o) 
 
 539 
 
 802 
 
 541 
 
 1310 
 
 629 
 
 800(6) 
 800(c) 
 
 540 
 
 540 
 
 S0O(b) 
 
 540 
 
 800(o) 
 
 539 
 
 800(a) 
 
 539, 540 
 
 800(6) 
 
 540 
 
 800(6) 
 800(a) 
 
 540 
 
 539 
 
 800(a) 
 800(a) 
 
 539 
 
 540 
 
 800(6) 
 
 540 
 
 800(a) 
 
 539 
 
 800(o) 
 
 539 
 
 800(a) 
 
 539, 540 
 
 802 
 
 541 
 
 1308 
 
 628 
 
 800(d) 
 
 540 
 
 800(a) 
 
 540 
 
 800(d) 
 
 540 
 
 800(a) 
 
 539 
 
INDEX. 905 
 
 ADMISSIONS— Continued. 
 Act February 24, 1919— Continued. 
 
 Reduced rate admissions, rate of tax 
 
 Religious organizations, exemptions in case of 
 
 Returns 
 
 Attestation (Act Feb . 24, 1919) 
 
 Roof gardens, rate of tax 
 
 Season tickets, rate of tax 
 
 Soldiers and sailors admitted free, taxability 
 
 Subscriptions, rate of tax 
 
 Symijhony orchestras, exemption in case of organizations 
 
 maintaining 
 
 Act October 3, 1917— 
 
 Assessment 
 
 Cabarets 
 
 Children under 12 years of age 
 
 Collection 
 
 Definition 
 
 Employees admitted free, taxability 
 
 Free admissions 
 
 Municipal officers admitted free, taxability 
 
 Outdoor general amusement parks, shows within 
 
 Payment 
 
 Fractions of cent 
 
 Penalty, failure to make return 
 
 False or fraudulent return 
 
 Permanent use of boxes or seats, rate of tax 
 
 Rate of tax 
 
 Records of taxpayers 
 
 Regulations 
 
 Returns 
 
 Penalty for failure to make, etc 
 
 ADULTERATED BTJTTEB (Act May 9, 1902)— 
 
 Bonds, manufacturers 
 
 Books, manufacturers 
 
 Wholesale dealers 
 
 Branding 
 
 Caution labels on packages 
 
 Date act effective 
 
 Definitions, 8.dulterated butter 
 
 Butter 
 
 (Act Aug. 2, 1886) 
 
 Manufacturer or dealer 
 
 Exports 
 
 Imports 
 
 Inventories, manufacturers 
 
 Labels on packages - 
 
 Marking 
 
 Notices, manufacturers 
 
 Packages 
 
 Penalties, neglecting to affix labels 
 
 Packing contrary to law 
 
 Rate of tax 
 
 Returns, manufacturers 
 
 Wholesale dealers 
 
 Signs, manufacturers 
 
 Special tax , dealers or manufacturers 
 
 Penalty for carrying on business of manufacturer, etc., 
 
 without paying 
 
 Stamps 
 
 State, etc., laws applicable 
 
 Tobacco and snufi, provisions relative to stamps apply 
 
 ADVANCES— _. ... .. ... „- 
 
 Public money 9j9jtl?Pd. by_ MlCrpSOft® gg^g 
 
 Section. 
 
 Page. 
 
 800(a) 
 
 539 
 
 800(6) 
 
 540 
 
 802 
 
 541 
 
 1 1309 
 
 629 
 
 800(a) 
 800(a) 
 
 540 
 
 539 
 
 800(a) 
 
 539 
 
 800(a) 
 
 539 
 
 800(6) 
 
 540 
 
 1001 
 
 887 
 
 700 
 
 877 
 
 700 
 
 876 
 
 f 702 
 11001,1003 
 
 878 
 
 887 
 
 700 
 
 877 
 
 700 
 
 876 
 
 700 
 
 876 
 
 700 
 
 876 
 
 700 
 
 877 
 
 1002 
 
 887 
 
 1008 
 
 889 
 
 1004 
 
 887 
 
 1004 
 
 887 
 
 700 
 
 877 
 
 700 
 
 876 
 
 1001 
 
 887 
 
 1005 
 
 888 
 
 / 702 
 \1001, 1002 
 
 878 
 
 887 
 
 1004 
 
 887 
 
 4 
 
 439 
 
 4 
 
 439 
 
 6 
 
 443 
 
 4 
 
 440 
 
 4 
 
 440 
 
 7 
 
 443 
 
 4 
 
 438 
 
 4 
 
 438 
 
 1 1 
 
 430 
 
 4 
 
 174, 175 
 
 4 
 
 440 
 
 4 
 
 440 
 
 4 
 
 439 
 
 4 
 
 440 
 
 4 
 
 440 
 
 4 
 
 439 
 
 4 
 
 439 
 
 4 
 
 440 
 
 4 
 
 439 
 
 4 
 
 440 
 
 4 
 
 439 
 
 6 
 
 443 
 
 4 
 
 439 
 
 4 
 
 174 
 
 4 
 
 161 
 
 4 
 
 440 
 
 1 
 
 430 
 
 4 
 
 440 
 
906 
 
 INDEX. 
 
 ADVEaTISEMENTS— g^ction. 
 
 Collectors' charges for (Act Feb. 8, 1875) 13 
 
 Liquor.. _. (Act Oct. 28, 1919, Title II) 17 
 
 Taking, etc., of vehicle, etc., used in transporting 
 
 (ActOct.28, 1919, Title II) , 26 
 
 Utensils, formulas, etc., for use in manufacture of 
 
 (Act Oct. 28, 1919, Title II) 18 
 
 Notice, distraint sale. 3190 
 
 Sale of real estate for taxes 3197 
 
 (Act Mar, 3, 1893) 3 
 
 Seizure of goods 3460 
 
 ADVISOBY TAX BOARD (Act Feb. 24, 1919)— 
 
 Creation 1301(d) 
 
 Evidence, receiving 1301(d) 
 
 Expenses 1301(d) 
 
 Findings 1301(d) 
 
 Limitation of existence 1301(d) 
 
 Membership 1301(d) 
 
 Recommendations 1301(d) 
 
 Removals 1301(d) 
 
 Salaries 1301(d) 
 
 Submission of questions to 1301(d) 
 
 Witnesses, summoning, etc 1301(d) 
 
 AFFIDAVIT S— 
 
 Claims against United States, making or using of false affi- 
 davit to obtain payment (Act Mar. 4, 1909) 35 
 
 Falsely making, altering, forging, etc. ..(Act Mar. 4, 1909) 28 
 
 Search warrant (Act June 1 5, 1917) 3-5, 17 
 
 AFFILIATED COBPOBATIONS— 
 
 Income taxes, consolidated returns (Act Feb. 24, 1919) 240 
 
 AGENTS— 
 
 Income taxes, exemption of sales agents. (Act Feb. 24, 1919) 231 
 
 Returns (Act Feb. 24, 1919) 223 
 
 Withholding agents, indemnity (Act Feb. 24, 1919) 221 
 
 Returns. ."■ (Act Feb. 24, 1919) 221 
 
 Internal revenue. (Sec Internal revenue agents.) 
 AGBICULTITRAL FAIBS— 
 
 Admissions tax, exemption (Act Feb. 24, 1919) 800(6) 
 
 Special tax (Act Feb. 24, 1919) 1001(7) 
 
 AGRICULTUBAI, ORGANIZATIONS— 
 
 Income taxes, exemptions (Act Feb. 24, 1919) 231 
 
 ALASKA— 
 
 Alcohol, withdrawal (Act Oct. 28, 1919, Title II) 11 
 
 Bonds, exemption from stamp tax (Act Feb. 24, 1919) 1101 
 
 Income taxes, compensation of officers. .(Act Feb. 24, 1919) 213(a) 
 
 Interest on obligations of (Act Feb . 24, 1919) 213 
 
 Officers charged with duty of enforcing liquor law (Act Feb. 
 
 14, 1917) 27 
 
 Sales, etc., of intoxicating liquor or alcohol (Act Feb. 14, 
 
 1917) ._ 1,26 
 
 Special-tax stamp or receipt as evidence of sale of intoxi- 
 cating liquor (Act Feb. 14, 1917) 26 
 
 Transportation tax, exemption (Act Feb. 24, 1919) 500(h) 
 
 ALCOHOL— 
 
 Definition 3248 
 
 (Act Oct. 28, 1919, Title III) 1 
 Denatured alcohol. (See National prohibition.) 
 Industrial alcohol. (See National PRomsiTioN.) 
 Officers charged with duty of enforcing law against sale of, 
 
 inAlaska (ActFeb. 14, 1917) 27 
 
 Proof spirits, quantity in 3249 
 
 Sales ia Alaska prohibited (Act Feb. 14, 1917) 1, 26 
 
 Scientific purposes, withdrawal for 3297 
 
 (Act May 3, 1878) 
 
 DigitizeiMi^(Mi(3^smmtle III) ii 
 
 Page. 
 
 79 
 357 
 
 360 
 
 357 
 120 
 122 
 125 
 600 
 
 101 
 101 
 101 
 101 
 101 
 101 
 101 
 101 
 101 
 101 
 101 
 
 680 
 
 679 
 
 602, 604 
 
 503 
 
 497 
 494 
 492 
 491 
 
 540 
 180 
 
 496 
 
 368 
 554 
 481 
 482 
 
 185 
 
 185 
 
 185 
 534 
 
 190 
 365 
 
 185 
 190 
 185 
 257 
 257 
 368 
 
Sootion. 
 
 Page. 
 
 403 
 216, 217 
 
 222 
 214,217 
 
 213 
 
 528 
 488 
 493 
 
 487, 488 
 483 
 
 221 
 210 
 217 
 
 491 
 478 
 488 
 
 12 
 3426 
 
 76 
 552 
 
 3326 
 
 1103 
 
 147, 148 
 
 278 
 555 
 680 
 
 INDEX. 907 
 
 ALE. {8ee Fermented liquors.) 
 ALIENS— 
 
 Estate tax, nonresidents (Act Feb. 24, 1919) 
 
 Income taxes, credits, nonresidents (Act Feb. 24, 1919) 
 
 Credits, residents (Act Feb. 24, 1919) 
 
 Deductions, nonresidents (Act Feb. 24, 1919) 
 
 Gross income, nonresidents (Act Feb. 24, 1919) 
 
 Payment of tax at source, nonresidents (Act Feb. 24, 
 
 1919) 
 
 Rate, nonresidents (Act Feb. 24, 1919) 
 
 Returns, nonresidents (Act Feb. 24, 1919) 
 
 ALLOWANCES— 
 
 Collectors (Act Feb. 8, 1875) 
 
 Stamps spoiled, destroyed, etc 
 
 ALTERATION S— 
 
 Brands on distilled spirits 
 
 Stamps (Act Feb . 24 ,1919) 
 
 United States obligations or securities. .(Act Mar. 4, 1909) 
 AMORTIZATION— 
 
 Cost of plants, etc., for war uses (Act Feb. 24, 1919) 214, 234 -485, 499 
 
 AMUSEMENT PLACES— 
 
 Admissions tax. (5ee Admissions.) 
 Special tax. {See OccuPATioN.'iL taxes.) 
 ANALYTICAL CHEMIST— 
 
 Appointment, compensation, etc (Act Aug. 2, 1886) 14 435 
 
 ANNTJAL LEAVE— 
 
 Gaugeis - (Act June 23, 1910) 90 
 
 Grantof (Act Mar. 15, 1898) 7 64 
 
 Holidays, exclusion (Act Feb. 24, 1899) 4 65 
 
 Inspectors (Act Feb. 24, 1919) 1302 84 
 
 Internal revenue agents (Act Feb. 24, 1919) 1302 84 
 
 Storekeepers (Act June 23, 1910) 90 
 
 Storekeeper-gangers (Act June 23, 1910) 90 
 
 ANNTJAL REPORTS— 
 
 Commissioner of Internal Revenue 196 67 
 
 Copies of documents accompanying report of Secretary of 
 
 the Treasury to be furnished Public Printer, when 196 67 
 
 Time for furnishing copy to printer (Act July 1, 1916) 3 67 
 
 ANNUITIES— 
 
 Income taxes, amount received by insured as return of 
 
 premium (Act Feb. 24, 1919) 213 482 
 
 APOTHECARIES. {See Drugs and druggists.) 
 
 Special tax 3246 176 
 
 APPEALS— 
 
 Circuit Court o^ Appeals 650 
 
 Commissioner, amount of income increased by collector (Act 
 
 Feb. 24, 1919) _ 
 
 Condition precedent to suit 
 
 Supreme Court, limitations 
 
 (Act Sept. 6, 1916) 
 
 APPOINTMENT— 
 
 Additional clerks (Act Apr. 28, 1902) 
 
 Assistant to Commissioner of Internal Revenue (Act Feb. 
 
 24, 1919) '^^H^l 
 
 Chief clerk 
 
 Collectors of internal revenue 
 
 Deputy collectors (Act Mar. 1, 1879) 
 
 (Act Oct. 22, 1913) 
 
 Commissioner of Internal Revenue 
 
 Deputy Commissioners 
 
 Gaugers 
 
 Digitized by Microsoft® 
 
 228 
 
 495 
 
 3226 
 
 146 
 
 1008 
 
 652 
 
 6 
 
 651 
 
 3 
 
 65 
 
 31(a) 
 
 55 
 
 320 
 
 56 
 
 3142 
 
 71 
 
 2 
 
 76 
 
 1 
 
 78 
 
 319 
 
 51 
 
 322 
 
 55 
 
 3156 
 
 88 
 
908 
 
 INDEX. 
 
 APPOINTMENT— Continued. Section. P^&. 
 
 Revenue agents 3152 81 
 
 (Act Apr. 28, 1902) 1 82 
 
 Solicitor of Internal Revenue 349 56 
 
 Storekeepers 3153 84 
 
 Superintendent oi export and drawback 3161 91 
 
 APPORTIONMENT— 
 
 Appropriation 3679 687 
 
 (ActAug.23, 1912) 6 688 
 
 Taxes 18 
 
 APPRAISAL— 
 
 Property exempt from distraint. . r 3187 119 
 
 Seized goods 3459, 3460 599, 600 
 
 APPROPRIATIONS— 
 
 Application 3678 687 
 
 Apportionment of amount to be expended by each bureau 
 
 (Act Aug. 23, 1912) 6 688 
 
 Collecting internal revenue (Act July 3, 1918) 1 57 
 
 (Act Feb. 24, 1919) 1301(c) 65 
 
 Compensation paid out of lump-sum appropriation, excess 
 
 over preceding fiscal year, etc (Act Mar. 4, 1913) 4 698 
 
 Estimates, per diem allowances (Act Aug. 1, 1914) 13 84 
 
 Excessive expenditures 3679 687 
 
 (Act June 30, 1906) 9 688 
 
 Fees of United States commissioners, etc., restriction on 
 
 use (Act Aug. 18, 1894) 660 
 
 Fiscal year ending June 30, 1919 (Act Feb. 24, 1919) 1301(c) 65 
 
 Restriction (Act Aug. 24, 1913) 7 57 
 
 Fraud, detecting rAct July 1, 1918) 1 605 
 
 Lump-sum, estimates (Act July 1, 1916) 4 57 
 
 Permanent annual 3689 686 
 
 Unexpended balances, covering into Treasury (Act June 
 
 20,1874) 5 689 
 
 (Act Mar. 4, 1909) 10 689 
 
 Expenditure 3690 688 
 
 ARMS— 
 
 Distraint, exemption where for personal use 3187 119 
 
 ARMY AND NAVY— 
 
 Admissions tax, exemption where proceeds of entertain- 
 ment are for benefit of persons in (Act Feb. 24, 1919) 800(6) 540 
 
 Appointment to civil offices, preference to disabled persons. 7154 693 
 
 (Act Aug. 15, 1876) 3 693 
 
 Estate tax, decedent dying while serving in (Act Feb. 24, 
 
 1919) 401 525 
 
 Income taxes, exemption of persons in. .(Act Feb. 24, 1919) 213 483 
 
 Intoxicating liquors, effect of national prohibition act as 
 to repealing regulations relating to (Act Oct. 28, 1919, 
 
 Title I) 7 349 
 
 Widows 01 soldiers and sailors, preference in reducing force of 
 
 civil employees (Act Aug. 15, 1876) 3 693 
 
 ARREST— 
 
 Civil actions (Act Aug. 13, 1888) 
 
 (Act Mar. 3, 1911) 
 Intoxicating liquor, person transporting (Act Oct. 28, 1919, 
 
 Title II) 
 
 Judicial district, arrest in one for trial in another (Act Aug. 
 
 13, 1888) 
 
 (Act Mar. 3, 1911) 
 Liquor nuisance, violation of injunction against (Act Oct. 
 
 28, 1919, Title II) 
 
 Marshal's dutj; (Act Aug. 18, 1894). 
 
 National prohibition act, violators of (Act Oct. 28, 1919, 
 
 Title II) 
 
 Offenders against United States 
 
 Digitized by Microsoft® 
 
 1 
 
 51 
 
 639 
 639 
 
 26 
 
 360 
 
 1 
 51 
 
 639 
 639 
 
 24 
 
 359 
 660 
 
 2 
 1014 
 
 350 
 642 
 
INDEX. 909 
 
 ARKEST— Continued. Section. Page. 
 
 War prohibition act, violators of. (Act Oct. 28, 1919, Title I) 2,4 347, 348 
 
 Warrants, issuance (Act May 28, 1896) 19 659 
 
 Use of money appropriated to pay fees of marshals, etc. 
 
 (Act Aug. 18, 1894) 660 
 
 ART— 
 
 Alcohol withdrawn for use in (Act June 7, 1906) 1 298 
 
 Estate tax, deductions of gifts for art purposes (Act Feb. 24, 
 
 1919) 403 528 
 
 Excise tax on works of (Act Feb. 24, 1919) 902 545 
 
 ASSESSMENTS AND COLLECTIONS— 
 Abatement of taxes. {See Abatement.) 
 
 Admissions tax (Act Feb. 24, 1919) 802 541 
 
 Adulterated butter, tax on (Act May 9, 1902) 4 440 
 
 Alcohol, tax on (Act Oct. 28, 1919, Title III) 16, 18 369 
 
 Canvass of districts for objects of taxation 3172 104 
 
 Certification, lists or assessments 3182 112 
 
 Tax from one collector to another for collection 3209 129 
 
 Chancery proceedings to subject real estate to payment 
 
 of tax 3207 127 
 
 Cigars,taxon 3371 385 
 
 Collection districts. (See Collection districts.) 
 Collectors. (See Collectors op internal revenue.) 
 Compromises. (iSee Compromises.) 
 
 Continuance of internal revenue cases 3231 151 
 
 Demand for payment of taxes 3184, 3185 116, 117 
 
 Depositories 3211 130 
 
 Embezzlements (Act Mar. 4, 1909) 88 668 
 
 Discontinuance of prosecution 3230 151 
 
 Distilled spirits tax (Act Aug. 27, 1894) 48 193 
 
 Excessive loss 3293 241 
 
 Relief from assessment for deficiencies (Act Mar. 1, 1879) 6 265 
 
 Removal without deposit in warehouse 3253 207 
 
 Distillers, deficiency and excess of materials used 3309 263 
 
 (Act Mar. 1, 1879) 6 265 
 
 Distrained property '. 3191 121 
 
 Distraint. (See Distraint.) 
 
 District attorneys, regulations for government of 3215 134 
 
 Dues, tax on (Act Feb. 24, 1919) 802 541 
 
 Employment of child labor, tax on (Act Feb. 24, 1919) 1205 567 
 
 f 3177 110 
 
 Entry upon premises where taxable articles are kept < on qq oiq{ tit 
 
 TT * * t /A +i?i, o^ imm/ 404,405 529,530 
 
 Estate tax (Act Feb. 24, 1919)< '^qo ' goA 
 
 Excess profits tax (Act Feb. 24, 1919' 327, 328 520, 521 
 
 Excise taxes (Act Feb. 24, 1919){ „05 w^7 ^4R^m 
 
 905, 907 548, 549 
 
 Export stamps issued 3314 269 
 
 False returns 3179 111 
 
 Fermented liquor, basing on materials used (Act May 13, 
 
 1876) 307 
 
 Filled cheese, tax on (Act June 6, 1896) 10 447 
 
 Fines, suits for 3213, 3214 132, 134 
 
 Forfeitures, suits for 3213,3214 132,134 
 
 Income taxes (Act Feb. 24, 1919) 250 504 
 
 Injunction to restrain assessment or collection of tax 3224 144 
 
 Insurance tax (Act Feb. 24, 1919) 504 538 
 
 Lecjacies, assessment of tax on failure of executor (Act Apr. 
 
 12,1902) 8 706 
 
 Lien for taxes. (See Liens.) 
 
 Lists, persons and property liable to taxation ■13180 3181 111 
 
 Sending to district where party taxed resides or ha^ 
 
 property 3209 129 
 
 Marshal, regulations for government of 3215 134 
 
 Method 3447 590 
 
 Digitized by I\/Ii6i^&^(m^ 24, 1919) 1307 628 
 
910 INDEX. 
 
 ASSESSMENTS AND COLLECTIONS— Continued. Sectitm. Page. 
 
 Mixed flour, tax on (Act June 13, 1898) 41 453 
 
 Nolle prosequi of prosecntion 3230 151 
 
 Notice and demand of taxes 3184,3185 116, 117 
 
 Obstructing ofBcera 3177 110 
 
 (Act Mar. 4, 1909) 140 674 
 
 Oleomargarine tax (Act Aug. 2, 1886) 9 434 
 
 Payment of tax. {See Payment.) 
 
 Penalties, failure to collect taxes (Act Feb. 24, 1919) 1308 628 
 
 Suits for 3213,3214 132,134 
 
 Playing cards, tax on (Act Aug. 27, 1894) 47 573 
 
 Receipts for taxes. (See Receipts.) 
 
 Refund of taxes. (See Refunds.) 
 
 Regulations 3447 590 
 
 Government of district attorneys, marshals, etc 3215 134 
 
 Remission of taxes. (See Remission.) 
 
 Repealed acts in force (Act Feb. 24, 1919) 1400 633 
 
 Restraining assessment or collection of tax 3224 144 
 
 Returns. (See Returns.) 
 
 Revenue Act of 1918, prior laws made part of (Act Feb. 24, 
 
 1919) 1305 627 
 
 Sale of real estate to satisfy taxes 3196 122 
 
 Second assessment, suits to recover taxes collected under. . 3225 146 
 Seizures. (See Searches and seizukes.) 
 
 Snuff, tax on 3371 385 
 
 Stamp taxes (Act Feb. 24, 1919) 1105 556 
 
 Article removed without being stamped 3437 553 
 
 Suits to recover taves VTTongfully collected 3226 146 
 
 {3173— 104— 
 
 ^175 ^179 107 111 
 
 Superintendence 321 51 
 
 Tobacco, tax on 3371 385 
 
 Transportation tax (Act Feb. 24, 1919) 502 536 
 
 Wines, imported, tax on (Act Feb. 24, 1919) 619 341 
 
 ASSIGNMENTS— 
 
 Assignees' liability for debts due United States 3467 686 
 
 Claims against United States 3477 689 
 
 Income tax returns by assignees (Act Feb. 24, 1919) 239 503 
 
 ASSOCIATIONS— 
 
 Definition 5 70 
 
 Particular associations. (See specific heads. ) 
 ASSUMPTION— 
 
 Revenue officer, falsely assuming to be. .(Act Mar. 4, 1909) 32, 66 675 
 ATHLETIC CLXTBS— 
 
 Dues, rate of tax on (Act Feb. 24, 1919) 801 541 
 
 ATTACHMENT— 
 
 Summons, failure of taxpayer to obey 3175 107 
 
 ATTORNEY GENERAL OF UNITED STATES— 
 
 Authority to commence and conduct legal proceedings 
 
 (Act June 30, 1906) , 658 
 
 Compromises, recommendation 3229 149 
 
 Counsel provided by, when 189, 364 657 
 
 Discontinuance or nolle prosequi of prosecution, permission. 3230 151 
 
 National prohibition act, employment of clerks, etc^ neces- 
 sary to enforce (Act Oct. 28, 1919, Title II) 38 365 
 
 ATTORNEYS AT LAW- 
 
 Authority where appointed by Attorney General (Act 
 
 June 30, 1906) 658 
 
 Emploj-ment 189, 364 657 
 
 Officers of United States and persons connected with depart- 
 ments acting as (Act Mai-. 4, 1909) ;- 109 702 
 
 Pending claims, time within which person formerly in 
 
 depaitment may prosecute 190 703 
 
 Treasury Department, practicing before (Act July 7, 1884) 3 690 
 
 Digitized by MmshWB'''''''^ ' ''' 
 
INDEX. 
 
 911 
 
 ATTORNEYS IN FACT— Section. Page. 
 
 Stamp tax on power of attoraey (Act Feb. 24, 1919) 560 
 
 AtrCTION- 
 
 Distraint sales for taxes {319a 3197 l''l 122 
 
 Sale of forfeited stills, materials etc 3450 593 
 
 Personal property for taxes (Act Mar. 3, 1893) 2 125 
 
 Real estate arquired by TJnited States 3208 128 
 
 Real estate for taxes 3197 122 
 
 (Act Mar. 3, 1893) 1,3 124,125 
 
 Real estate of collector in. proceeding to collect dues... 3217 135 
 
 Seized goods 3459, 3460 599, 600 
 
 Vehicle, etc., used in transporting intoxicating liquor 
 
 (Act Oct. 28, 1919, Title II) 26 360 
 
 AITDITOE^ 
 
 Stating and certifying accounts of officers receiving or 
 
 disbuising public money to Solicitor of Treasury 3625,3633 666 
 
 ATJTOMOBIUBS— 
 
 Excisetax (Act Feb. 24, 1919) 900(1-3) 54^ 
 
 Special tax on operation or renting of passenger automo- 
 biles (ActFeb. 24, 1919) 1001(11) 181 
 
 Transportation tax. (See Tbanspohtation tax.) 
 
 BAD DEBTS— 
 
 Income taxes, deductions (Act Feb . 24 
 
 BANKS AND BANKERS— 
 
 Branch banks, tax on circulation 
 
 Calculation of tax 
 
 Certified checks received in payment of tax as lien against 
 
 assets (Act Mar. 2, 1911) 
 
 Circulation, tax on 
 
 Definitions, bank 
 
 Banksr 
 
 Embezzlement, receiving public money on deposit, etc., 
 
 when unauthorized (Act Mar. 4, 1909) 
 
 Estimate by Commissioner in default of return 
 
 Exemption from tax on circulation. 
 
 Income taxes, exemption of cooperative banka (Act Feb. 24, 
 
 1919) 
 
 Exemption oi Federal land banks. . .(Act. Feb 24, 1919) 
 
 Exemption of saving-s banks (Act Feb. 24, 1919) 
 
 Insolvent banks, exemption from tax... (Act Mar. 1, 1879) 
 
 National banks, exemption from certain provisions 
 
 Notes used for circulation, tax on 
 
 (Act Feb. 8, 1875) 
 
 Payment of tax, time 
 
 Penalties, default in making return 
 
 (Act Feb. 8, 1875) 
 
 Returns 
 
 (Act Feb. 8, 1875> 
 
 Stamp taxes, circulating bank notes (ActFeb. 24, 1919) 
 
 BANKRTJPTCY. (See Insolvency.) 
 
 Income taxes, xetums by trustee in bankruptcy (Act 
 
 Feb. 24, 1919) 
 
 Stamp tax on powers of attorney required in bankruptcy 
 
 cases (Act Feb. 24, 1919) 
 
 BAY EXJM— 
 
 Porto Rico, tax on spirits (Act Feb. 24, 1909) 
 
 BEER. (See Fehmented liquoks.) 
 BENEFICIARY SOCIETIES— 
 
 Income taxes, exemption (Act Feb. 24, 1&19) 
 
 Digitized by Microsoft® 
 
 1919) 214, 234 485, 499 
 
 3408 
 
 576 
 
 3409 
 
 576 
 
 
 130 
 
 3408 
 
 575 
 
 3407 
 
 575 
 
 3407 
 
 575 
 
 96 
 
 670 
 
 3415 
 
 579 
 
 3411 
 
 576 
 
 231 
 
 496 
 
 231 
 
 497 
 
 231 
 
 496 
 
 22 
 
 580 
 
 3417 
 
 580 
 
 3412, 3413 
 
 577 
 
 19,20 
 
 577 
 
 3409 
 
 576 
 
 3415 
 
 579 
 
 21 
 
 578 
 
 3414-3416 
 
 579 
 
 21 
 
 578 
 
 
 559 
 
 239 
 
 503 
 
 
 560 
 
 231 
 
 197 
 
 496 
 
912 
 
 INDEX. 
 
 BEQUESTS— 
 
 Charitable, etc., uses, deduction for estate tax purposes 
 
 (Act Feb. 24, 1919) ; 
 
 Income taxes, exemption (Act Feb. 24, 1919) 
 
 BEVERAGES. (See Distilled spirits; Fekmented liq. 
 uoBs; National pkohibition; Wines.) 
 
 Act October 3, 1917 
 
 Artificial mineral waters, rate of tax (Act Feb. 24, 1919' 
 
 Bottlers, returns and payment of tax (Act Feb. 24, 1919* 
 
 Carbonated waters, rate of tax (Act Feb. 24, 1919* 
 
 Credits, overpayments or overcoUections (Act Feb. 24, 1919' 
 
 Export, sales or leases of articles for (Act Feb. 24, 1919' 
 
 Ginger ale, rate of tax (ActFeb. 24, 1919' 
 
 Importers, rate of tax (Act Feb . 24, 1919' 
 
 Returns and payment of tax (ActFeb. 24, 1919 
 
 Manufacturers, rate of tax (Act Feb . 24, 1919' 
 
 Returns and payment of tax ^Act Feb. 24, 1919' 
 
 Natural mineral waters, rate of tax (Act Feb. 24, 1919^ 
 
 Nonbeverage liquor, manufacture, etc. (Act Oct. 28, 1919' 
 
 Title II) 
 
 Payment of tax (Act Feb. 24, 1919) 
 
 Vendee or lessee (Act Feb . 24, 1919) 
 
 Penalties, failure to- pay, collect, etc., tax (Act Feb. 24, 
 
 1919) 
 
 Nonpayment of tax. (Act Feb .24, 1919) 
 
 Pop, rate of tax .(ActFeb. 24, 1919) 
 
 Producers, rate of tax (Act Feb . 24, 1919) 
 
 Returns and payment of tax (Act Feb. 24, 1919) 
 
 Rate of tax where containing less than ^ of 1 per cent of 
 
 alcohol (Act Feb. 24, 1919; 
 
 Returns of manufacturers, etc (Act Feb. 24, 1919' 
 
 Attestation (Act Feb. 24, 1919 
 
 Root beer, rate of tax (ActFeb. 24, 1919| 
 
 Sarsaparilla, rate of tax (Act Feb . 24, 1919] 
 
 Soda fountains, soft drinks mixed at (Act Feb . 24, 1919' 
 
 Table waters, rate of tax (Act Feb . 24, 1919^ 
 
 Unfermented grape juice, rate of tax (Act Feb. 24, 1919^ 
 
 BILL IN CHANCERY— 
 
 Enforcement of lien of United States on real estate 
 
 BILLBOARDS— 
 
 Liquor advertisements (Act Oct. 28, 1919, Title II) 
 
 BILLIARD ROOMS— 
 
 Definition (Act Feb. 24, 1919) 
 
 Special tax on proprietors (Act Feb . 24, 1919) 
 
 BLANKS— 
 
 Contracts for, by Commissioner 
 
 Prescriptions for liquor (Act Oct. 28, 1919, Title II) 
 
 BLANK BOOKS— 
 
 Allowance to collectors for (Act Feb. 8, 1875) 
 
 Contract for, by Commissioner 
 
 BOARDS OF TRADE— 
 
 Income taxes, exemptions (ActFeb. 24, 1919) 
 
 Sale of cotton for future delivery. (See Cotton futures.) 
 
 Stamp tax, sales of produce on (Act Feb. 24, 1919) 
 
 BOATS— 
 
 Excise tax (Act Feb. 24, 1919) 
 
 Special tax on use of (Act Feb. 24, 1919) 
 
 Transportation tax. (See Transportation tax.) 
 
 BONDS— 
 
 Actions, requiring production of original b ond 
 
 Adulterated butter manufacturers (Act May 9, 1902). 
 
 Alcohol, withdrawal for scientific purposes 
 
 Digitized by MiS^o%m''^''"^ 
 
 Section. 
 
 Page. 
 
 403 
 
 528 
 
 1 213(6) 
 
 482 
 
 300-315 
 
 861-867 
 
 1 628(a) 
 
 343 
 
 1 629 
 
 343 
 
 628(a) 
 
 343 
 
 1 1310 
 
 629 
 
 1 1310 
 
 630 
 
 628(a) 
 628(a) 
 
 343 
 
 343 
 
 629 
 
 343 
 
 628(a) 
 
 343 
 
 629 
 
 343 
 
 628(6) 
 
 343 
 
 3 
 
 351 
 
 629 
 
 343 
 
 1312 
 
 630 
 
 1308 
 
 628 
 
 629 
 
 343 
 
 628(a) 
 628(a) 
 
 343 
 
 343 
 
 629 
 
 343 
 
 628(o) 
 
 343 
 
 629 
 
 343 
 
 1309 
 
 629 
 
 628(a) 
 628(a) 
 
 343 
 
 343 
 
 630 
 
 343 
 
 628(6) 
 628(0) 
 
 343 
 
 343 
 
 8207 
 
 127 
 
 17 
 
 357 
 
 1001(8) 
 1001(8) 
 
 181 
 
 181 
 
 321 
 
 51 
 
 8 
 
 355 
 
 13 
 
 79 
 
 321 
 
 51 
 
 231 
 
 496 
 
 
 558 
 
 900(20) 
 
 544 
 
 1003 
 
 183 
 
 886 
 
 672 
 
 4 
 
 439 
 
 3297 
 
 257 
 
 
 257 
 
INDEX. 913 
 
 BONDS— Continued. Section. 
 
 Bottling spirits in bond (Act Mar. 3, ] 
 
 Brewers. (See Fermented liquors.) 
 
 Cigars, exportation 
 
 Manufacturers _ . . 
 
 Cigarette manufacturers purchasing paper made up into 
 
 tubes (Act Feb. 24, 1919) 
 
 Claimant to goods seized 
 
 Collectors of internal revenue 3143, 3144 
 
 Biennial examination (Act Mar. 2, 1895) 
 
 Filing (Act Mar. 2, 1895) 
 
 Liability for deputy acting 
 
 Period of liability covered (Act Mar. 2, 1895) 
 
 Renewal (Act Mar. 2, 1895) 
 
 Denaturers of alcohol (Act June 7, 1906) 
 
 Deputy collectors of internal revenue (Act Mar. 1, 1879) 
 
 Distillers. (See Distilled spirits:) 
 
 Filled cheese manufacturers (Act June 6, 1896) 
 
 Gaugers 
 
 Industrial alcohol plants, operation of (Act Oct. 28, 1919, 
 
 Title III) 
 
 Interest 
 
 Leaf tobacco dealers ; 
 
 Liberty bonds. (See Liberty bonds:) 
 
 Liquor nuisance, action to restrain (Act Oct. 28, 1919, 
 
 Title II) 
 
 Mixed flour, removal for export (Act June 13, 1898) 
 
 Notice to obligors of default of principal.. (Act Aug. 8, 1888) 
 Oleomargarine, manufacturers (Act Aug. 2, 1886> 
 
 Removal for export (Act Aug . 2 , 1886) 
 
 Perishable goods seized, etc., bonding 
 
 Playing cards, exportation (Act Aug. 27, 1894^ 
 
 Process or renovated butter manufacturers. (Act May 9, 1902) 
 Public moneys, officers employed in disbursement of. . 
 
 Smoking opium manufacturers (Act Jan. 17, 1914) 
 
 Snuff, exportation 
 
 Manufacturers 
 
 Stamp tax, exemption (Act Feb . 24, 1919) 
 
 Rate (Act Feb. 24, 1919). 
 
 Storekeepers 
 
 Storekeeper-gangers (Act Aug. 15, 1876) 
 
 (Act Aug. 28, 1894) 
 
 Supreme Court, appeal, etc., to 
 
 Sureties, corporation acceptable as (Act Aug. 13, 1894). 
 
 Tobacco, exportation 
 
 Manufacturers 
 
 Peddlers 
 
 United States, acceptance in payment of legacy, etc., taxes 
 
 (Act Apr. 4, 1918) 6 710 
 
 AVar Finance Corporation. (See War Finance Corpora- 
 tion.) 
 War prohibition act, proceedings to abate or restrain viola- 
 
 tionsof (ActOct. 28, 1919, Titlel) 4 348 
 
 White phosphorous match manufacturers (Act Apr. 9, 1912) 2 457 
 
 BOOKS— 
 
 Adulterated butter, manufacturers (Act May 9, 1902) 4 439 
 
 Wholesalers (Act May 9, 1902) 6 443 
 
 Brewers 3336- 306, 
 
 3338,3340 307,310 
 Bureau of drawbacks, delivery to collector of internal rev- 
 enue 3161 91 
 
 Certified copies, admissibility in evidence 882 644 
 
 Cigar manufacturers 3390 398 
 
 Denaturers of alcohol (Act June 7, 1906) 1 298 
 
 Distilled spirits. (See Distilled spirits.) 
 
 140184°— 20 — -58 Digitized by Microsoft® 
 
 3385 
 
 390 
 
 3387 
 
 396 
 
 1 703 
 
 403 
 
 3460 
 
 600 
 
 3143, 3144 
 
 72,75 
 
 5 
 
 617 
 
 5 
 
 617 
 
 3149 
 
 80 
 
 5 
 
 617 
 
 5 
 
 617 
 
 
 298 
 
 2 
 
 76 
 
 5 
 
 445 
 
 3156 
 
 88 
 
 2,7 
 
 366, 367 
 
 963 
 
 649 
 
 3360 
 
 376 
 
 22 
 
 358 
 
 44 
 
 454 
 
 i 1 
 
 618 
 
 5 
 
 431 
 
 16 
 
 436 
 
 3459 
 
 599 
 
 43 
 
 572 
 
 4 
 
 439 
 
 3639 
 
 667 
 
 1,2 
 
 413 
 
 3385 
 
 390 
 
 3355 
 
 373 
 
 1101 
 
 554 
 
 
 557 
 
 3153 
 
 84 
 
 1 
 
 85 
 
 64 
 
 85 
 
 1001 
 
 652 
 
 
 612 
 
 3385 
 
 390 
 
 3355 
 
 373 
 
 3381 
 
 388 
 
914 
 
 INDEX. 
 
 BOOKS— Continued. 
 
 Distillers f 
 
 (Act Aug. '27," 1894) 
 (Act June 7, 1906) 
 
 Exemption from distraint 
 
 Exhibition to collector on demand in distraint proceedings. . 
 False entry by internal revenue officer or agent, ground for 
 
 dismissal 
 
 rilled_ cheese manufacturers ^Act June 6, 1896) 
 
 Jurisdiction of district courts to compel production (Act 
 
 Feb. 24, 1919) 
 
 Leaf tobacco dealers 
 
 Liquor prescription blanks (Act Oct. 28, 1919, Title II) 
 
 Oleomargarine, manufacturers (Act Aug. 2, 1886) 
 
 Wholesalers (Act May 9, 1902) 
 
 Penalty for refusal to produce 
 
 Production compelled 
 
 Sectioa. 
 
 3303-3305 
 
 62 
 
 1 
 
 3187 
 
 3189 
 
 3169 
 5 
 
 1318 
 3359 
 
 (Act Feb. 24, 1919) 
 Suits other than criminal (Act June 22, 1874) 
 
 Rectifiere 
 
 Reference books ^Act July 3, 1918) 
 
 Renovated butter, manufactureijs (Act May 9, 1902) 
 
 Wholesalers (Act May 9, 1902) 
 
 Smoking opium manufacturers (Act Dec. 17, 1914) 
 
 Snuff manufacturers 
 
 Storekeepers 
 
 Tobacco manufacturers 
 
 Users of denatured alcohol (Act June 7, 1906) 
 
 BOWLING ALLEYS— 
 
 Definition (Act Feb. 24, 1919) 
 
 Special tax on proprietors (Act Feb. 24, 1919) 
 
 BRANDS— 
 
 Cigars, removal without branding 
 
 Distilled spirits, alteration 
 
 Cases'bottled in bond (Act Mar. 3, 1897) 
 
 Effacement from empty casks 
 
 Five-gallon packages 
 
 Imports (Act Mar. 1, 1879) 
 
 Removal from warehouse 
 
 Into warehouse 
 
 Distraint, articles sold upon 
 
 Fermented liquor 
 
 Filled cheese (Act June 6, 1896) 
 
 Mixed flour (Act June 13, 1898^ 
 
 Oleomargarine (Act Aug. 2, 1886) 
 
 Tobacco 
 
 BRANDY. {See Distilled spirits.) 
 BREWERS. {See Feemented liquors.) 
 
 Definition 3244(1) 
 
 Special tax 3244(1) 
 
 (Act Feb.- 24, 1919) 1001(12) 
 
 Carrying on business without payment 3242 
 
 Dealers in malt liquor 3244(5) 
 
 BRIBERY— 
 
 Acceptance of bribes, penalty (Act Mar. 4, 1909) 117 
 
 Penalty .' (Act Mar. 4, 1909) 39 
 
 BROKERS— 
 
 Admissions tax, rate where ticket sold atincreased price (Act 
 
 Feb. 24, 1919) 800(a) 
 
 Definition (Act Feb. 24, 1919) 1001(1) 
 
 Income tax returns (Act Feb. 24, 1919) 255 
 
 Special tax (Act Feb. 24, 1919) 1001(1) 
 
 Stamp tax, deliveries orteinsf ers of capital stock for sale (Act 
 
 Feb . 24, 1919) O.igitizedpy. mcrasofm 
 
 3179 
 3173, 
 3175, 3179 
 1305, 1318 
 6 
 3318 
 1 
 4 
 6 
 1 
 3358 
 3301, 3302 
 3358 
 1 
 
 1001(8) 
 1001(8) 
 
 3397 
 
 3326 
 
 1 
 
 3324 
 
 3323 
 
 11 
 
 3295 
 
 3287 
 
 3458 
 
 3349 
 
 6 
 
 37,38 
 
 6,11, 
 
 16 
 
 3362 
 
 260, 261 
 274 
 298 
 119 
 120 
 
 98 
 445 
 
 631 
 376 
 355 
 431 
 
 443 
 
 111 
 
 104, 
 
 107, 111 
 
 628, 631 
 
 644 
 
 272 
 
 60 
 
 439 
 
 443 
 
 419 
 
 375 
 
 259, 260 
 
 375 
 
 298 
 
 181 
 181 
 
 407 
 278 
 292 
 277 
 276 
 289 
 255 
 234 
 598 
 315 
 446 
 452 
 431,435 
 436 
 379 
 
 162 
 162 
 181 
 159 
 170 
 
 676 
 675 
 
 539 
 179 
 509 
 179 
 
 558 
 
INDEX. 
 
 915 
 
 Section. 
 231 
 
 1101 
 
 244 
 103 
 
 214, 234 483, ■; 
 
 231 
 
 BTJILDrNG AND LOAN ASSOCIATIONS— 
 
 Income taxes, exemption. . , (Act Feb . 24, 1919) 
 
 Stamp taxes, exemption of stocks or bonds (Act Feb. 24, 
 1919) 
 
 BUSINESS— 
 
 Officers or clerks trading in funds or property of United 
 States 
 
 (Actiiar. 4,'i9b9) 
 Special occupational tax. {See Occupational taxes.) 
 BUSINESS EXPENSES AND LOSSES— 
 
 Income taxes, deduction (Act Feb. 24, 1919) 
 
 BUSINESS LEAGUES— 
 
 Income taxes, exemption (Act Feb. 24, 1919) 
 
 BUTTER. {See Adtilteeated butter; Oleomargakine; 
 
 Process or renovated butter.) 
 BUTTERINE. {See Oleomargarine.) 
 
 C. 
 
 CABARETS— 
 
 Admissions tax. {See Admissions.) 
 
 CABLE MESSAGES— 
 
 Transmission tax. {See Transportation tax.) 
 
 CANAL ZONE— 
 
 Liquor, manufacture, sale, etc. (Act Oct. 28, 1919, Title III) 20 
 
 CANDY— 
 
 Excise tax (Act Feb. 24, 1919^) 900(9) 
 
 CANNERIES— 
 
 Child labor, tax on employment. {See Child labor.) 
 
 CAPITAL— 
 
 Invested capital. (See ExrE.s.s propits t.\xes.) 
 
 CAPITAL STOCK— 
 
 Stamp tax, issue (Act Feb. 24, 1919) 
 
 Sales or transfers (Act Feb. 24, 1919) 
 
 CAPITAL STOCK TAX— 
 Act February 24, 1919— 
 
 Assessment 1305 
 
 Corporations excluded 1000(c) 
 
 Domestic corporations, rate 1000(a) 
 
 Foreign corporations, rate 1000(a, c) 
 
 Foreign mutual insurance companies, rate 1000(c) 
 
 Insurance companies, computation of tax 1 000( 6) 
 
 Mutual insurance companies, liability 1000(c) 
 
 Penalties, failure to pay, collect, etc., tax 1308 
 
 Rate 1000(a, c) 
 
 Records 1305 
 
 Regulations 1305 
 
 Reserve funds of insurance companies, inclusion in com- 
 puting tax 1000(6) 
 
 Retui-ns 1000(<f),.1305 
 
 Attestation 1309 
 
 Value of capital stock, estimating 1000(a) 
 
 Act September 8, 1916— 
 
 Assessment 409 
 
 Computation 407 
 
 Corporations excluded 407 
 
 Credits 407 
 
 Domestic corporations, rate 407 
 
 Exemptions 407 
 
 Foreign corporations, rate \.,. 407 
 
 Rate - 407 
 
 Records Digitized iiy-MiGfosoft®- • = = 409 
 
 Page. 
 
 49G 
 554 
 
 702 
 671 
 
 496 
 
 36£ 
 
 544 
 
 557 
 
 5r.s 
 
 027 
 17S 
 178 
 178 
 178 
 178 
 178 
 02 S 
 178 
 627 
 627 
 
 178 
 
 179, 627 
 
 629 
 
 17S 
 
 843 
 840 
 840 
 840 
 840 
 840 
 840 
 840 
 843 
 
916 
 
 INDEX. 
 
 CAPITAL STOCK TAX— Continued. 
 Act September 8, 1916 — Continued. 
 
 Regulations 
 
 Reserve funds of insurance companies, inclusion in com- 
 puting tax 
 
 Returns 
 
 CARRIERS— 
 
 Liquor, accepting for shipment where containing false state- 
 ment (Act Oct. 28, 1919, Title II) 
 
 Notice of contents of receptacle (Act Oct. 28, 1919, 
 
 Title II) 
 
 Order to deliver to one not bona fide consignee (Act 
 
 Oct. 28, 1919, Title II) 
 
 Records of transportation .. (Act Oct. 28, 1919, Title II) 
 Occupational tax, operating or renting passenger automo- 
 biles for hire (Act-Peb. 24, 1919) 
 
 Stamp tax on passage tickets. : (Act Feb. 24, 1919) 
 
 Transportation tax. {See Tkanspohtation tax.) 
 CASUALTY— 
 
 Distilled spirits destroyed by 
 
 Losses, deduction for income-tax purposes (Act Feb. 24, 
 
 1919) 
 
 CASUALTY INSURANCE. {See Insurance tax.) 
 CAUTION NOTICES— 
 
 Adulterated butter (Act May 9, 1902) 
 
 Cigars 
 
 Filled cheese (Act June 6, 1896) 
 
 Mixed flour (Act June 13, 1898) 
 
 Oleomargarine (Act Aug. 2, 1886) 
 
 Snuff 
 
 Tobacco 
 
 White phosphorous matches (Act Apr. 9, 1912) 
 
 CEMETERY COMPANIES— 
 
 Income taxes, exemption (Act Feb. 24, 1919) 
 
 Public cemetery corporations, stamp tax on proxies for 
 
 voting (Act Feb. 24, 1919) 
 
 CERTIFICATES— 
 
 Cigar manufacturers 
 
 Distraint sale, purchase at 
 
 Due diligence by collector 
 
 False, by internal revenue officers or agents, ground for dis- 
 missal 
 
 Payment of collections into Treasury 
 
 Permitting children to work (Act Feb. 24, 1919) 
 
 Probable cause 
 
 Sale of real estate, purchase at 
 
 Tobacco, export, clearance certificate.. (Act Feb. 8, 1875) 
 
 Manufacturer 
 
 Peddlers 
 
 CERTIFICATES OF INDEBTEDNESS— 
 
 Exemption from taxation (Act Feb. 24 , 1917) 
 
 (Act .Tuly 9, 1918) 
 (Act Mar. 3, 1919) 
 
 Payment of taxes by (Act Feb. 24, 1919) 
 
 Stamp taxes, rate.. (Act Feb. 24, 1919) 
 
 CERTIFIED CHECKS— 
 
 Payment of taxes (Act Mar. 2, 1911) 
 
 (Act Mar. 3, 1913) 
 Uncertified checks, receipt in payment of taxes (Act Feb. 
 
 24, 1919) 
 
 CERTIFIED COPIES— 
 
 Books, etc. , admissibility in evidence 
 
 Section. 
 409 
 
 407 
 407, 409 
 
 15 
 
 14 
 
 16 
 13 
 
 1001(11) 
 
 tage. 
 843 
 
 840 
 
 840, 843 
 
 357 
 
 356 
 
 357 
 356 
 
 181 
 
 3221-3223 
 
 142-144 
 
 214 
 
 484 
 
 4 
 
 3393 
 
 i 8 
 
 1 39, 40 
 
 1 7 
 
 3364 
 
 3364 
 
 1 12 
 
 440 
 400 
 447 
 4.52, 453 
 433 
 380 
 380 
 460 
 
 1 231 
 
 496 
 
 ) 
 
 560 
 
 3387 
 
 3194, 3198 
 
 3218 
 
 3169 
 
 3210 
 
 1203 
 
 970. 989 
 
 3197, 3198 
 
 24 
 
 3355 
 
 3383 
 
 11 
 3 
 
 4 
 1314 
 
 1314 
 
 882, 886 
 34 
 
 396 
 
 122, 125 
 
 136 
 
 129 
 566 
 654 
 122, 125 
 392 
 372 
 389 
 
 582 
 585 
 586 
 631 
 567 
 
 130 
 131 
 
 631 
 
 644, 671 
 363 
 
INBEX. 
 
 917 
 
 1919) 
 
 CERTIFIED COPIES— Ccntinued. 
 
 Special-tax payere, list of 
 
 Special-tax stamp or receipt as prima facie evidence of sale 
 
 of intoxicating liquor (Act Feb. 14, 1917) 
 
 CEBTIORABI— 
 
 Supreme Court, limitations (Act Sept. 6, 1916) 
 
 CHAMBERS OF COMMEBCE— 
 
 Income taxes, exemption (Act Feb. 24, 1919) 
 
 CHAMPAGNE. (Ses Wines.) 
 CHANCERY— 
 
 Bill in, to subject real estate to payment of tax 
 
 CHARITABLiE BEQUESTS— 
 
 Refund of tax on legacy or bequest. . . . (Act June 27, 1902) 
 
 (Act July 27, 1912) 
 CHABITABIiE OBGANIZATIONS— 
 
 Admissions tax, exemption (Act Feb. 24, 1919^ 
 
 Estate tax, deduction of gifts, etc (Act Feb. 24, 1919' 
 
 Income taxes, deduction of gifts (Act Feb. 24, 1919 
 
 Exemption (Act Feb. 24, 1919 
 
 Stamp tax, proxies for voting (Act Feb. 24 
 
 CHAUT ATJQTJ A S— 
 
 Special tax (Act Feb . 24 
 
 CHECKS — 
 
 Certified, payment of taxes (Act Mar. 2, 
 
 (Act Mar. 3, 
 
 Stamp taxes, rate (Act Feb. 24 
 
 Uncertified, payment of taxes by (Act Feb. 24 
 
 Receiving for income and excess profits taxes (Act Oct. 
 
 3, 1917) 
 
 CHEESE— 
 
 Pilled cheese. {See Filled cheese.) 
 
 State, etc., laws applicable to imitation cheese (Act Jlay 
 
 9,1902) 
 
 CHEMISTS— 
 
 Oleomargarine, employment to test, etc.. (Act Aug. 2, 1886) 
 
 Special tax 
 
 CHEROOTS. {See Cigars and cigahettes.) 
 CHIEF CLERK- 
 
 Compensation 
 
 Designation 
 
 Duties 
 
 Reports 
 
 CHILD LABOR (Act Feb. 24, 1919)— 
 
 Ages, children under 14 
 
 Children under 16 
 
 Assessment of tax 
 
 Certificates permitting children to work 
 
 Computation, gross amount of sales 
 
 Net profits - 
 
 Cost of raw materials, deduction in computing net profits. . 
 
 Deductions, computation of net profits 
 
 Definition, taxable year 
 
 First taxable year 
 
 Good faith in employment 
 
 Hours of work 
 
 Inspection of premises 
 
 Interest, deduction in computing net profits 
 
 Losses, deduction in computing net profits 
 
 Mistake as to age of child, effect 
 
 Net profits, computation ^ 
 
 Number of hours in day and days m week for children to 
 
 work Digitized by Microsoft® 
 
 Section. 
 
 Page. 
 
 3240 
 
 157 
 
 26 
 
 185 
 
 6 
 
 651 
 
 231 
 
 496 
 
 3207 
 
 800(6) 
 
 403 
 
 214, 219 
 
 231 
 
 1919) 1001(7) 
 
 1911). 
 1913). 
 1919). 
 1919) 
 
 1314 
 1010 
 
 127 
 
 708 
 710 
 
 540 
 527 
 486, 490 
 496 
 560 
 
 180 
 
 130 
 131 
 559 
 631 
 
 131 
 
 430 
 
 14 
 
 435 
 
 3246 
 
 176 
 
 320 
 
 56 
 
 320 
 
 56 
 
 173, 174 
 
 56 
 
 174 
 
 56 
 
 1200 
 
 565 
 
 1200 
 
 565 
 
 1205 
 
 567 
 
 1203 
 
 566 
 
 1202 
 
 566 
 
 1201 
 
 565 
 
 1201(a) 
 
 565 
 
 1201 
 
 565 
 
 1207 
 
 567 
 
 1207 
 
 567 
 
 1203 
 
 566 
 
 1200 
 
 565 
 
 1206 
 
 567 
 
 1201(c) 
 1201(e) 
 
 566 
 
 566 
 
 1203 
 
 566 
 
 1201 
 
 565 
 
 1200 
 
 565 
 
918 INDEX. 
 
 CHII.D LABOR (Act Feb. 34, 1919)— Continued. Section. Pago.. 
 
 Operating expenses, deduction in computing net profits. . . 1201(6) 565 
 
 Payment of tax 1205 567 
 
 Penalties, failure to pay, collect, etc., tax 1308 628 
 
 False statements 1203 566 
 
 Obstructing inspection of premises 1206 567 
 
 Persons liable to tax 1200 565 
 
 Rate of tax 1200 565 
 
 Report of inspection of premises 1206 567 
 
 Returns 1204, 1205 567 
 
 Running expenses, deduction in computing net profits 1201(6) 565 
 
 Sales for personal benefit at less than market price 1202 566 
 
 State certificates.permitting children to work 1203 566 
 
 Taxable year defined 1207 567 
 
 Taxes, deduction in computing net profits 1201(d) 566 
 
 Time for work 1200 565 
 
 CHLOROFORM— 
 
 Denatured alcohol, use in manufacture. (Act Mar. 2, 1907) 1 300 
 
 CHURCHES. (iScc Religious oeganizations.) 
 
 CLDER- 
 
 National prohibition act, exception from operation of (Act 
 
 Oct. 28, 1919, Title II) 4 351 
 
 Permit to manufacture for home use (Act Oct. 28, 1919, 
 
 Title II) 29 361 
 
 CIGARS AND CIGARETTES— 
 
 Abandonment, disposition in case of 3369 384 
 
 Additional tax (Act Oct. 3, 1917)| 402^04} ^^''-^GS 
 
 Assessment of tax 3371 384 
 
 Bond, manufacturers 3387 396 
 
 Manufacturers purchasing cigarette paper made up into 
 
 tubes (Act Feb. 24, 1919) 703 403 
 
 Books kept by manufacturers 3390 398 
 
 Boxes for cigars 3392 399 
 
 Certificate issued to manufacturers 3387 396 
 
 Cheroots considered as cigars 3387 397 
 
 Cigar maker defined 3244(10) 395 
 
 Cigarettes considered as cigars 3387 397 
 
 Cigarette paper (Act Feb. 24, 1919) 703 402 
 
 Collectors, accounts as to shipments in bond 3444 589 
 
 Dates of acts imposing tax, etc 403 
 
 Destruction, emptied stamped cigar boxes 3406 411 
 
 Stamps on emptied cigar boxes ". 3406 411 
 
 Unsalable cigars 3369 384 
 
 Excise tax on holders and pipes ( Act Feb . 24, 1919) 900(15) 544 
 
 Export 3385 390 
 
 Cigars packed for 3397 407 
 
 Drawback 3386 393 
 
 Removal without payment of tax.. (Act Aug. 4, 1886) 1 392 
 
 Sales or leases of articles for (Act Feb. 24, 1919) 1310 630 
 
 False brands on boxes of cigars 3392 399 
 
 Floor tax .- (Act Feb. 24, 1919) 702 402 
 
 Fraud, forfeiture of property for using false stamps, etc 3400 408 
 
 Manufacture of cigars on shares, commission, or contract 3399 408 
 
 Using fraudulent or imitation stamps 3397 407 
 
 Imports, labels on boxes, packages, etc . (Act Feb . . 24, 1919) 700 402 
 Manufacture of cigars from imported tobacco (Act 
 
 Oct. 3, 1913) IV(M) 411 
 
 Packing, stamping, etc., of cigarettes 3392 399 
 
 Rate of tax "... .(Act Feb. 24, 1919) 700 402 
 
 Sale of imported cigars not packed and stamped as 
 
 required 3403 410 
 
 Stamps, when and by whom affixed 3402 409 
 
 Indecent pictures in packages of cigars or cigarettes 3394 401 
 
 Interest of internal revenue oflBcer m manufacture of 3168 98 
 
 Digitized by Microsoft® 
 
INDEX. 919 
 
 CIGARS AND CIGABETTES-Continued. Section. Page. 
 
 Inventory by manufacturers 339O 397 
 
 Labels on boxes, packages, etc 3393 40Q 
 
 (ActFeb. 24, igio) 700 402 
 
 Laws coexteixsiye with jurisdiction of United States 3448 590 
 
 Lottery tickets in packages of cigars or cigarettes 3394 401 
 
 Manufacture of cigars on shares, commission, or contract, 
 
 how stamped 3399 ^Qg 
 
 Manufacturer of cigars defined 3244 (10) 395 
 
 _ , . (Act Feb. 24,'i9i9) 1002 182 
 
 :', umbers assigned to manufacturers 3389 397 
 
 Packages, cigarettes and small cigars 3392 399 
 
 (Act Feb. '24,' 1919) 700 402 
 
 Lottery tickets or indecent pictures in 3394 401 
 
 Payment of tax by vendee or lessee (Act Feb. 24, 1919) 1312 630 
 
 Peddlers, definition 3244 (11) 388 
 
 Penalty for unlawful peddling 3384 389 
 
 Sign on wagon 3382 389 
 
 Penalties, customs officer permitting imported cigars to pass 
 out of custody without payment of tax and having 
 
 stamps affixed, etc 3402 409 
 
 Employment of unregistered cigar maker 3244 (10) 395 
 
 Failure of manufacturer to give bond 3387 396 
 
 Failure of manufacturer to post certificate 3387 396 
 
 Failure of manufacturer to put up sign 3388 397 
 
 Failure to affix label to cigar boxes, etc 3393 400 
 
 Failure to destroy stamps on empty boxes or selling or 
 
 using same fraudulently 3406 411 
 
 Failure to pay, collect, etc., tax (Act Feb. 24, 1919) 1308 628 
 
 Fraud in manufacture of cigars on shares, commission, 
 
 or contract 3399 408 
 
 Omitting things required and doing things forbidden. . 3456 597 
 
 Packing cigars in unauthorized boxes 3392 399 
 
 Purchase of cigars not branded or stamped 3404 410 
 
 Refusal of manufacturer to deliver inventory, keep 
 
 accounts, etc 3390 398 
 
 Relanding cigars shipped for export 3385 391 
 
 Removal without properly boxing, stamping, or 
 
 branding 3397 407 
 
 Selling imported cigars not packed and stamped as 
 
 required by law 3403 410 
 
 Using fraudulent or imitation stamps 3397 407 
 
 Posting certificate by manufacturer 3387 396 
 
 Rates of tax 3394 400 
 
 (Act Sept. 8, 1916) 408 842 
 
 (ActFeb. 24, 1919) 700 401 
 
 Record, manufacturers, collector to keep 3389 397 
 
 Manufacturers purchasing cigarette paper made up into 
 
 tubes (Act Feb. 24, 1919) 703 403 
 
 Registration of cigar maker 3244 (10) 395 
 
 Regulations authorized 3396 406 
 
 Removalwithoutproperly boxing, stamping, or branding.. 3397 407 
 
 Retail sales 3392 399 
 
 Returns 3390,3391 397,398 
 
 Attestation (Act Feb. 24, 1919) 1309 629 
 
 Signs of manufacturer^ 3388 397 
 
 Special tax, buying cigars from manufacturer who has not 
 
 paid 3405 410 
 
 Manufacturers (Act Feb. 24, 1919) 1002 182 
 
 Penalty for failure of manufacturer or dealer to pay 3242 159 
 
 Stamps, absence as evidence of nonpayment of tax 3398 408 
 
 Boxes and packages 3392, 3394 399, 400 
 
 (Act Feb. 24, 1919) 700 402 
 Cigars manufactured from imported tobacco (Act 
 
 Oct.3,1913) .-.. IV(M) 411 
 
 Cigarsmanufacturedonshares, commission, orcontract. 3399 408 
 
 Cigars on hand -^f^fl.^^iry Mfcmsbft® '''' ''' 
 
920 
 
 INDEX. 
 
 CIGARS AND CIGARETTES— Continued. 
 
 Stamps — Continued. Section. Page. 
 
 Destruction on emptied cigar boxes 3406 411 
 
 Expert 3385 390 
 
 Forfeited cigars 3369 383 
 
 Forfeiture of property for using false stamps. . .'. 3400 408 
 
 Fraudulent or imitation .' 3397 407 
 
 How prepared, furnished, and accounted for 3395 406 
 
 Imported cigars 3402 409 
 
 Purchasing cigars not stamped 3404 410 
 
 Statement, dealers in material for cigars 3391 398 
 
 Manufacturer 3387 396 
 
 Verification of inventory of manufacturer 3390 398 
 
 Withdrawal of imported tobacco for manufacture of cigars 
 
 (Act Oct. 3, 1913) IV (M) 411 
 
 CIRCUIT COURT OF APPEALS— 
 
 Income taxes, judges (Act Feb. 24, 1919) 213 (a) 481 
 
 Time for suing out appeal or writ of error to. (Act Mar. 3, 1891) 11 65o 
 CIRCULATING BANK NOTES— 
 
 Stamp taxes, rate (Act Feb. 24, 1919) 559 
 
 Taxation. {See Banks and bankers.) 
 CIRCUS— 
 
 Definition (Act Feb. 24, 1919) 1001 (6) 180 
 
 Special tax on proprietors (Act Feb. 24, 1919 1001 (6) 180 
 
 CITATION— 
 
 National prohibition act, offenders against (Act Oct. 28, 
 
 1919, Title II) 9 355 
 
 CIVIC LEAGUES— 
 
 Income taxes, exemption (Act Feb . 24, 1919) 231 496 
 
 CIVIL SERVICE— 
 
 EflBciency ratings (Act Aug. 23, 1912) 4 694 
 
 National prohibition act, appointment of clerks, etc., under 
 
 (Act Oct, 28, 1919, Title 11) 38 365 
 
 Regulations, authority of President to prescribe 1753 693 
 
 Removal of persons in (Act Aug. 24, 1912^ 6 694 
 
 Transfer of clerks or employees (Act Apr. 28, 1902) 3 65 
 
 CLAIMS— 
 
 Abatement of t'axes. {See Abatement.) 
 
 Adjustment in Treasury Department 236 682 
 
 Assignment 3477 689 
 
 Carrying away and unlawfully using papers relating to, 
 
 penalty (Act Mar. 4, 1909) 40 678 
 
 Clerks or employees prosecuting against United States 190 703 
 
 (Act Mar. 4, 1909) 109 702 
 
 Credits in suits 951, 957 685, 672 
 
 Deduction of debt due United States from claim allowed 
 
 (Act Mar. 3, 1875) 684 
 
 Estate, against, deduction for estate tax purposes (Act Feb. 
 
 24,1919) 403 527 
 
 Fraudulent or fictitious, penalty for making (Act Mar. 4, 
 
 1909) 
 
 Redemption of or allowance for stamps. .(Act June 30, 1902) 
 Refund of taxes. (iSce Refunds.) 
 Remission of taxes. {See Remission.) 
 
 Seized goods 
 
 Witnesses, subpoenas 
 
 CLERKS AND EMPLOYEES— 
 
 Allowance, extra 1764, 1765 
 
 Annual leave (Act Mar, 15, 1898) 
 
 (Act Feb. 24, 1899) 
 
 Chief clerk, compensation 
 
 Designation 
 
 35 
 
 680 
 
 1 
 
 552 
 
 3460 
 
 600 
 
 184 
 
 684 
 
 1765 
 
 700 
 
 7 
 
 64 
 
 4 
 
 65 
 
 320 
 
 56 
 
 320 
 
 56 
 
 1,174 
 
 56 
 
 174 
 
 56 
 
Section. 
 
 Page. 
 
 190 
 
 703 
 
 109 
 
 702 
 
 850, 1765 
 
 701, 700 
 
 12 
 
 698 
 
 8 
 
 60 
 
 1763 
 
 699 
 
 6 
 
 701 
 
 1764 
 
 700 
 
 6 
 
 60 
 
 7 
 
 697 
 
 INDEX. 921 
 
 CLERKS AND EMPLOYEES— Continued. 
 
 Claims against United States, prosecuting 
 
 (Act Mar. 4, 1909) 
 
 Compensation, additional to regular compensation 
 
 (Act Aug. i, 19l'4) 
 . • (Act July 3, 1918) 
 
 Double salaries 
 
 (Act May io,' 1916) 
 
 Extra senices 
 
 Increase (Act July 3," 1918) 
 
 Reemployment within one year. (Act Oct. 6, 1917) 
 Within one year where transferred (Act Oct. 6, 
 
 ^ 1917) 7 697 
 
 layment out of lump-sum appropriation in excess of 
 salary preceding fiscal year, etc. (Act Mar. 4, 
 
 1913) 
 
 Restriction on 
 
 Specific appropriation (Act Aug. 5, 1882) 
 
 Per diem in lieu of subsistence (Act Aug. 1, 191 1) 
 
 (Act May 10, 1916) 
 Services rendered person in matters before depart- 
 ments (Act Mar. 4, 1909) 
 
 Unauthorized office 
 
 Contributions, oflScial superiors 
 
 Political j)urposes (Act Aug. 15, 1876) 
 
 Disclosure of information acquired in discharge of official 
 
 duties 
 
 •Dismissal or discharge, disclosure of contents of income 
 
 tax return 
 
 Distribution of duties 
 
 Districtof Columbia, detail to duty in (Act Aug. 5, 1882) 
 
 (Act June 22, 1906) 
 
 Detail to duty outside of (Act July 3, 1918) 
 
 Public holidays 
 
 Efficiency ratings (Act Aug. 23, 1912) 
 
 Exemption from laws (Act Feb. 24, 1899) 
 
 Expense accounts, oaths to (Act Aug. 24,. 1912) 
 
 Expenses where sent away as witnesses 
 
 Gifts to official superiors 
 
 Holidays 
 
 Honorable service roll, establishment. ..(Act Feb. 24, 1899) 
 
 Hours of service (Act Mar. 15, 1898) 
 
 Lump-sum appropriations, compensation paid out of, excess 
 
 over preceding fiscal year, etc (Act Mar. 4, 1913; 
 
 Mileage 
 
 (Act June 16, 1874) 
 National prohibition act, employment of clerks, etc., neces- 
 sary to enforce (Act Oct. 28, 1919, Title II) 38 . 365 
 
 Number employed in internal revenue office (Act July 2, 
 
 1884) 1 81,91 
 
 Penalties, carr>dng on trade or business in funds, property, 
 
 etc., of United States 
 
 Political contributions, making (Act Aug. 15, 1876) 
 
 Prosecuting claims against United States (Act Mar. 4, 
 
 1909) 
 
 Receiving compensation for services rendered in mat- 
 ter before department (Act Mar. 4, 1909) 
 
 Pension roll , establishment f Act Feb . 24, 1899) 
 
 Perquisites (Act Mar. 20, 1874) 
 
 Political purposes, contributions (Act Aug. 15, 1876) 
 
 Posts of duty, designation by Commissioner (Act May 10, 
 
 1916) 
 
 Preference, persons disabled in military or naval service. . . 
 
 (Act Aug. 15, 1876) 
 
 Widows of soldiers and sailors (Act Aug. 15, 1876) 
 
 Presents to official superiors... 
 
 Promotion CUQJtlZGd.b.y. MjOfXlSaS^. 1, 1914) 
 
 4 
 
 698 
 
 1790 
 
 703 
 
 4,5 
 
 695, 696 
 
 13 
 
 84 
 
 1 
 
 84 
 
 113 
 
 702 
 
 1760 
 
 698 
 
 1784 
 
 703 
 
 6 
 
 703 
 
 3167 
 
 96 
 
 31^7 
 
 96 
 
 174 
 
 56 
 
 4,5 
 
 695, 696 
 
 6 
 
 69b 
 
 5 
 
 697 
 
 993 
 
 699 
 
 4 
 
 694 
 
 4 
 
 65 
 
 8 
 
 95 
 
 850 
 
 701 
 
 1784 
 
 703 
 
 993 
 
 699 
 
 4 
 
 65 
 
 7 
 
 64 
 
 4 
 
 698 
 
 850 
 
 701 
 
 
 701 
 
 244 
 
 702 
 
 6 
 
 703 
 
 109 
 
 702 
 
 113 
 
 702 
 
 4 
 
 65 
 
 3 
 
 700 
 
 6 
 
 703 
 
 1 
 
 84 
 
 1754 
 
 693 
 
 3 
 
 693 
 
 3 
 
 693 
 
 1784 
 
 703 
 
 12 
 
 698 
 
92-2 INDEX. 
 
 CLERKS AND EMPLOYEES— Continued. 
 
 Prosecuting claims against United States 
 
 (Act Mar. 4, 1909) 
 
 Public holidays 
 
 Keduction (Act Aug. 24, 1912) 
 
 Regulations, ci\'il service 
 
 Removal (Act Aug. 24, 1912) 
 
 Sick leave (Act Mar. 15, 1898) 
 
 (Act Feb. 24, 1899) 
 
 Stamps, issuance before payment (Act Mar. 1, 1879) 
 
 Supervision of duties 
 
 Temporary and additional (Act Apr. 23, 1902) 
 
 Tradmg in property, funds, etc., of United States 
 
 Transfer, classified ser\T.ce (Act Apr. 2?, 1902) 
 
 Duties (Act Aug. 15, 1876) 
 
 From executive department to independent establish- 
 ment and \ice versa (Act Oct. 6, 1917) 6 697 
 
 From one executive department to another (Act June 
 
 22,1906) 5 696 
 
 Increase in compensation within one year (Act Oct. 
 
 6, 1917) 
 
 Traveling expenses 
 
 (Act June 16, 1874) 
 
 Voluntary service, acceptance (Act May 1, 1884) 
 
 Witnesses, expenses where sent away as 
 
 CLERKS OF COXTRTS— 
 
 Indices of judgment records, duty to keep (Act Aug. 1, 
 
 Section. 
 
 Pag6. 
 
 190 
 
 703 
 
 109 
 
 702 
 
 993 
 
 699 
 
 6 
 
 694 
 
 175.T 
 
 693 
 
 6 
 
 694 
 
 7 
 
 64 
 
 4 
 
 65 
 
 1 
 
 100 
 
 173 
 
 56 
 
 3 
 
 65 
 
 244 
 
 702 
 
 3 
 
 65 
 
 o 
 
 693 
 
 7 
 
 697 
 
 850 
 
 701 
 
 
 701 
 
 
 698 
 
 850 
 
 701 
 
 2 
 
 648 
 
 99 
 
 671 
 
 797 
 
 660 
 
 1187 
 
 119 
 
 900 
 
 544 
 
 904 
 
 546 
 
 Penalty for failing to deposit moneys (Act Mar. 4, 1909) 
 
 Reports 
 
 CLOTHING— 
 
 Distraint, exemption 
 
 Excise tax (Act Feb. 24, 1919) 
 
 Luxm-y tax (Act Feb. 24, 1919) 
 
 CLUBS— 
 
 Dues, tax on. {See Dues.) 
 
 Income taxes, exemption .(Act Feb. 24, 1919) 231 496 
 
 COLLECTIONS. {See Assessments and collections.) 
 COLLECTION DISTRICTS— 
 
 Appointment of collectors 3142 71 
 
 Establishment by President 3141 71 
 
 Hawaii (Act Apr, 30, 1900) 87,104 619 
 
 List of 47 
 
 Number 3141, 3142 71 
 
 (Act Aug. 23, 1912) 1 72 
 
 (Act July 16, 1914) 1 72 
 
 COLLECTORS OF INTERNAL REVENUE— 
 
 Accounts, adjustment according to fiscal year 3146, 3147 76 
 
 Advertising, stationery, etc., payment (Act Feb. 8,1875) 13 79 
 
 Charges incurred in distraint sale 3192 121 
 
 Compensation of agents examining. (Act Feb. 3, 1905) 1 84 
 
 Distress v/arrant in case of failure to render 3217, 3625 135, 666 
 
 Goods in bond 3444 588 
 
 Quarterly (Act May 27, 1908) 1 130 
 
 Receipt of depository as voucher 3211 130 
 
 Time for rendering 3212 132 
 
 Administration of oaths 3165 95 
 
 Appointment 3142 . 71 
 
 Deputies (Act Mar. 1, 1879) 2 76 
 
 Bonds 3143, 3144 72, 75 
 
 Canvass of district for objects of taxation 3172 104 
 
 Charged with what 3218 136 
 
 Cigars and cigarettes, duties, etc., with relation to. {See 
 
 Cigars and cigarettes.) 
 Collection of taxes. {See Assessments and collections.) 
 
 Digitized by Microsoft® 
 
INDEX. 923 
 
 COLLECTORS OF INTERNAL REVENUE— Continued. section. Vtsc 
 
 Commissions 3147 76 
 
 Distraint sale for taxes 3193 121 
 
 Statement as to 315S 91 
 
 Compensation (Act Mar. 1, 1879) 2 77,79 
 
 Acting as disbursing agents '. '. 3144 75 
 
 Apportionment between collectors 3147 76 
 
 Deputy collectors performing duties of collector 3150 81 
 
 Fiscal year 3146 76 
 
 Maximum amount (Act Feb. 8, 1875) 13 79 
 
 Readjustmentandincreaseof salarie8(ActFeb.24, 1919) 1301(5) 80 
 
 Credited with what 3218 136 
 
 Custody of public money, duties 3639 667 
 
 Daily payments of collections into Treasury (Act May 10, 
 
 1916) - 1 129 
 
 Death, transfer of uncollected balances to successor 3219 137 
 
 Delinquency, proceedings in case of 3217 135 
 
 Demand notice to pay taxes 3184, 3185 116, 117 
 
 Deputies. (See Deputy collectoks.) 
 
 Diligence required 3218 136 
 
 Disability 3149 80 
 
 Disbursing agents of Treasury, acting as 3144 75 
 
 Duties and liabilities {r639^3643| ^^2-667 
 
 Discharge of duties of other collectors 3166 96 
 
 Disclosure of information acquired in discharge of official 
 
 duties - 3167 96 
 
 Distilled spirits, duties, etc., with relation to. {See Dis- 
 tilled SPIRITS.) 
 
 Distraint against, for failure to account, etc 
 
 Proceedings by < 3187- 
 
 District attorneys to defend, when 
 
 Entering other districts to make examination 
 
 Entry upon premises where taxable articles are kept < q^qq ; 
 
 Execution against, where probable cause for act done 
 
 Exportations and drawbacks, charge of 
 
 Fermented liquors, duties, etc., with relation to. {See Fer- 
 
 ME>;TED LIQUORS.) 
 
 Hawaii (Act Apr. 30, 1900) 87 619 
 
 Interest in manufacture of tobacco, spirits or fermented 
 
 liquors - - - 
 
 Monthly statement - 
 
 Number (Act Aug. 23, 1912) 
 
 (Act July 16, 1914) 
 Payment of amount of taxes and revenue collected into 
 
 Treasury - 
 
 (Act May 10, 1916) 
 
 Judgments or moneys recovered or received . 
 
 Public money, duties and liabilities as receivers and dis-f 
 
 ' bm-sersof .--- .----.- \3639, 3643 
 
 Purchase of property sold under distraint 
 
 Quarterly accounts (Act May 27, 1908) 
 
 Receipts given, when 
 
 ^ (Act Aug. 27, 1894) 
 
 Estate tax (Act Feb. 24, 1919) 
 
 Income taxes (Act Feb. 24, 1919) 
 
 Records, sales of land for taxes 3203, 
 
 Removal, transfer of uncollected balances to successor 
 
 Repayment of sums recovered against : 
 
 Reports, failure to make - . 
 
 ^ (Act Mar. 4, 1909) 
 
 Neglect of duty, etc., of officers or agents 
 
 Violations of law to district attorney 
 
 Resignation, transfer of uncollected balances to successor. . 
 
 Digitized by Microsoft® 
 
 3217 
 
 135 
 
 3185, 
 
 117, 
 
 -3195 
 
 119-122 
 
 771 
 
 658 
 
 3173 
 
 104 
 
 3177 
 
 110 
 
 3181 
 
 111 
 
 989 
 
 654 
 
 3101 
 
 91 
 
 3168 
 
 98 
 
 3212 
 
 132 
 
 1 
 
 72 
 
 1 
 
 72 
 
 S210 
 
 129 
 
 1 
 
 129 
 
 3216 
 
 135 
 
 3620-1 
 1, 3643/ 
 
 662-607 
 
 3192 
 
 121 
 
 1 
 
 130 
 
 3183 
 
 115 
 
 37 
 
 115 
 
 407 
 
 530 
 
 251 
 
 507 
 
 1, 3204 
 
 126 
 
 3219 
 
 137 
 
 3220 
 
 137 
 
 3169 
 
 98 
 
 101 
 
 671 
 
 3163 
 
 92 
 
 3164 
 
 94 
 
 3219 
 
 137 
 
924 
 
 IISTDEX. 
 
 COIiLECTOBS OF INTERNAL BEVENUE— Continued. 
 
 Responsibility for acts of deputies 
 
 (Act Mar. 1, 1879) 
 
 Returns made by, when 
 
 Seizure, property in possession in violation of law 
 
 Property valued at $500 or less, proceedings 
 
 Real esbite 
 
 Special taxes, alphabetical list of those paying 
 
 Stamps, issuance before payment (Act Mar. 1, 1879) 
 
 Statements, collections 
 
 Entire amount of fees, commissions, etc 
 
 Successors, credits 
 
 Transfer of uncollected balances to 
 
 Suits to recover sums forfeited, duty as to 
 
 Summoning persons to be examined, etc 
 
 Superintendent of export and drawback 
 
 Supervising duties of gangers 
 
 Suspension by Commissioner (Act Aug. 15, 1876 ) 
 
 Temporary storekeeper, designation 
 
 Tobacco, duties, etc., with relation to. (See Tobacco.) 
 
 Vacancy in office 
 
 COLLEGES. {See Educational organizations.) 
 COMMISSIONS— 
 
 Collectors of internal revenue 
 
 Deputy collectors, performance of duties of collector.. 
 
 Distilled spirits stamps sold 
 
 Distraint sales 
 
 Statement as to 
 
 Delinquents accountable for public money 
 
 COMMISSIONEK OF INTERNAL REVENTTE— 
 Abatement of taxes, power, etc. {See Abatement.) _ 
 Agent, acting through, with respect to national prohibition 
 
 (Act Oct. 28, 1919, Title II) 
 
 Appeal to, condition precedent to suit 
 
 Appointment 
 
 Assessments of taxes. (See Assessments and collections.) 
 Assigning agents to duty under direction of other ofl&cers. . . 
 
 Assistant (Act Feb. 24, 1919) 
 
 Filing records required by national prohibition act 
 
 with (Act Oct. 28, 1919, Title II) 
 
 Certficate as to receipt of reports of collectors 
 
 Certification to Comptroller of Treasury of due diligence 
 
 by collector ....... 
 
 Chancery proceedings to enforce lien on real estate, direction 
 
 of 
 
 Chief clerk, designation - 
 
 Cigars and cigarettes, duties, etc., with relation to. (See 
 Cigars and cioarettbs.) 
 
 Compromises, authority 
 
 Contracts for printing, etc 
 
 With United States, access to data, etc., relating to 
 
 (Act Feb. 24, 1919) 
 
 Filing with (Act Feb. 24, 1919) 
 
 Deputies. (See Deputy commissioners op internal 
 revenue.) 
 
 Detection and punishment of violations of law 
 
 Distilled spirits, duties, etc., with relation to. (See Dis- 
 tilled spirits.) 
 
 District attorneys, reports 
 
 Duties, in general 
 
 Employment of agents 
 
 Estimate of expense of assessing and collecting taxes 
 
 Fees and .charges in seizure cases, determination 
 
 General duties 
 
 List of Commissioners 
 
 Seetien. 
 
 Page; 
 
 3149 
 
 80 
 
 2 
 
 77 
 
 3173, 3176 
 
 104, 108 
 
 3453 
 
 594 
 
 3460 
 
 599 
 
 3196-3205 
 
 122-127 
 
 3240 
 
 157 
 
 1 
 
 100 
 
 3212 
 
 132 
 
 3158 
 
 91 
 
 3218 
 
 136 
 
 3219 
 
 137 
 
 3213 
 
 132 
 
 3173-3175 
 
 104^107 
 
 3161, 3162 
 
 91,92 
 
 3156 
 
 88 
 
 1 
 
 93 
 
 3155 
 
 88 
 
 3149, 3150 
 
 3463 
 
 774, 838 
 
 321 
 
 3152 
 
 321, 3671 
 
 3206 
 
 321 
 
 80,81 
 
 3147 
 3150 
 3314 
 3193 
 3158 
 3624 
 
 76 
 
 81 
 
 269 
 
 121 
 
 91 
 
 666 
 
 1 
 
 3226 
 
 319 
 
 350 
 
 146 
 
 51 
 
 3152 
 1301(a) 
 
 81 
 55 
 
 1 
 3147 
 
 350 
 76 
 
 3218 
 
 136 
 
 3207 
 320 
 
 127 
 56 
 
 3229 
 321 
 
 149 
 51 
 
 1408 
 1408 
 
 633 
 633 
 
 604 
 
 659 
 
 51 
 
 81 
 
 51,53 
 
 127 
 51 
 15 
 
 Digitized by Microsoft® 
 
INDEX. 
 
 925 
 
 (Act 
 
 COMMISSIONER OF INTERN AI, REVENUE— Cont'd. 
 Manufacturers of certain articles, permits to use liquor 
 
 (Act Oct. 28, 1919, Title II) 
 Monthly reports on condition of business (Act Mar. 15, 1898) 
 National prohibition act, compromise of civil causes arising 
 
 from violation of (Act Oct. 28, 1919, Title II) 
 
 Employment of clerks, etc., necessary to enforce (Act 
 
 Oct. 28, 1919, Title II) 
 
 Inspection' of records required by (Act Oct. 28, 1919, 
 
 Title II) 
 
 Investigation and report of violations (Act Oct. 28, 1919, 
 
 Title II 
 
 Powers and protection in enforcement of (Act Oct. 28, 
 
 1919, Title II) 
 
 Nonbeverage liquor, permits to manufacture, etc. (Act Oct 
 
 Oct. 28, 1919, Title II) 
 
 Notice to show cause why certain articles should not be 
 dealt -n-ith as intoxicating liquors (Act Oct. 28, 1919, Title 
 
 Per diem in lieu of subsistence, grant . . (Act May 10, 1916) 
 Posts of duty of employees, designation. (Act May 10, 1916) 
 
 Prescribing amount of collector's bond, etc 
 
 Duties of deputy 
 
 (Act Oct. 6, 1917) 
 
 Printing contracts 
 
 Real estate acquired by United States, charge of 
 
 Recommendation of allowances for collectors, etc. 
 
 Mar. 1, 1879) 
 
 Records requred by national prohibition act, filing with 
 
 assistant (Act Oct. 28, 1919, Title II) 
 
 Refund of taxes. (See Refunds.) 
 
 Registi-y of death and removal of special-tax payers 
 
 Regulations. (See Regulations and other specific heads.) 
 
 Reports by, expenditures (Act July 3, 1918) 
 
 Number, etc., of employees (Act July 3, 1918) 
 
 Refunds, etc 
 
 Reports to, clerks of court 
 
 Collectors and internal revenue agents 
 
 Returns, prescribing forms 
 
 Sacramental wine, permits to manufacture, etc (Act Oct. 28, 
 
 1919, Title II) 
 
 Salary 
 
 (Act Feb. 24, 1919) 
 Sale of property purchased by United States under distraint, 
 
 regulations 
 
 Seizures, authorizing making of 
 
 Stamps, authority, duties, etc., as to. (See Stamps and 
 STAMP taxes.) 
 
 Suits for taxes, penalties, etc., sanction 
 
 Suspension of collectors (Act Aug. 15, 1876) 
 
 Tobacco, duties, etc., with relation to. (See Tobacco.) 
 War prohibition act, investigation and report of violation 
 
 (Act Oct. 28, 1919, Title I' 
 
 Power to enforce (Act Oct. 28, 1919, Title I 
 
 Swearing out warrant against oHenders against (Act 
 
 Oct. 28, 1919, Title I) 
 
 COMMITTING TRIAI-— 
 
 National prohibition act, violators of (Act Oct. 28, 1919, 
 
 Title II) 
 
 War prohibition act, violators of (Act Oct. 28, 1919, Title I). 
 COMMON NCnSANCE— 
 
 Intoxicating liquor, keeping or carrying around (Act Oct. 
 
 28, 1919, Title II) 
 
 Places where manufactured, kept, etc. (Act Oct. 28, 
 1919, Title II) 
 
 ^^tFel')!^'!!°'?..'^sW%Mf^S^M'.'..".''.' 
 
 Section. 
 
 Page. 
 
 4,5 
 
 351, 352 
 
 7 
 
 56 
 
 35 
 
 363 
 
 38 
 
 365 
 
 34 
 
 363 
 
 2 
 
 350 
 
 28 
 
 361 
 
 3 
 
 351 
 
 4,5 
 
 351, 352 
 
 1 
 
 84 
 
 1 
 
 84 
 
 3143 
 
 72 
 
 323 
 
 55 
 
 1 
 
 56 
 
 321 
 
 51 
 
 3208 
 
 128 
 
 2 
 
 79 
 
 1 
 
 350 
 
 3241 
 
 158 
 
 1 
 
 57 
 
 1,6 
 
 57,60 
 
 3220 
 
 137 
 
 797 
 
 660 
 
 3163 
 
 92 
 
 3173 
 
 104 
 
 3 
 
 351 
 
 319 
 
 51 
 
 1300 
 
 51 
 
 3192 
 
 121 
 
 3166 
 
 96 
 
 3214 
 
 134 
 
 1 
 
 93 
 
 2 
 
 347 
 
 
 
 349 
 
 347 
 
 2 
 4 
 
 350 
 348 
 
 23 
 
 359 
 
 21 
 
 358 
 
 3 
 
 347 
 
926 
 
 INDEX. 
 
 COMPANY. {See Coepoeations.) Section. Page. 
 
 Definition 5 70 
 
 COMPENSATION— 
 
 Additionalconipensation to employees. (Act July 3, 1918) 6 60 
 
 Advisory Tax Board - (Act Feb. 24, 1919) 1301(rf) 101 
 
 Appropriations (Act July 3, 1918) 1 57 
 
 Assistant to Commissioner of Internal Revenue (Act Feb. 24, 
 
 1919) 1301(a) 55 
 
 Civilian employees, increase (Act July 3, 1918) 6 60 
 
 Clerks or employees, additional to regular compensation. . . 850 701 
 
 1765 700 
 
 (Act Aug. 1, 1914) 12 698 
 
 Annual and sick leave (Act Mar. 15, 1898) 7 64 
 
 (Act Feb. 24, 1899) 4 65 
 
 Double salary 1763 699 
 
 (Act May 10, 1916) 6 701 
 
 Extra services 1764 700 
 
 Increase (Act July 3, 1918) 6 60 
 
 Reemplojonent -sTithiu one year. (Act Aug. 6, 1917) 7 697 
 Within one year where transferred. .(Act Aug. 6, 
 
 1917) 7 697 
 
 Payment, lump-sum appropriation in excess of salary 
 
 preceding year, etc (Act Mar. 4, 1913) 4 698 
 
 Restriction 1790 , 703 
 
 Specific appropriation (Act Aug. 5, 1882^ 4,5 695,696 
 
 Per diem in lieu of subsistence (Act Aug. 1, 1914) 13 84 
 
 (Act May 10, 1916) 1 84 
 iServices rendered person in matters before departments 
 
 (Act Mar. 4, 1909) 113 702 
 
 Unauthorized office 1760 698 
 
 Collectors of internal revenue (Act Mar. 1, 1879) 2 77,79 
 
 Acting as disbursing agents 3144 75 
 
 Apportionment between collectors 3147 76 
 
 Deputy collectors, performing duties of collector 3150 81 
 
 Special duty in other districts . (Act Apr. 17, 1900) 1 81 
 
 Fiscal year 8146 76 
 
 Maximum amount (Act Feb. 8, 1875) 13 79 
 
 Readjustment and increase (Act Feb. 24, 1019) 1301(6) 80 
 
 Commissioner of Internal Revenue 319 51 
 
 (Act Feb. 24, 1919) 1300 51 
 
 Assistant to (Act Feb. 24, 1919) 1301(a) 55 
 
 Deputies 323 55 
 
 (Act Mar. 1, 1879) 2 76 
 
 (Act Feb. 24, 1919) 1301(a) 55 
 
 Dismissal of officer or agent for receiving, illegally 3169 98 
 
 Gangers 3157 89 
 
 (Act Aug. 15, 1876) 1 85 
 
 (Act Feb. 24, 1911) 80 
 
 (Act Aug. 27, 1894) 03 87 
 
 (Act June 19, 1878) 1 89 
 
 (Act July 7, 1898) 1 89 
 
 Heads of divisions 320 56 
 
 Income taxes, gross income (Act Feb. 24, 1919) 213 481 
 
 Internal revenue agents 3152 81 
 
 (Act Apr. 17, 1900) 1 83 
 
 Act Apr. 28, 1902) 1 82 
 
 (Act Feb. 3, 1905) 1 84 
 
 Payment to person in arrears to United States 1766 684 
 
 Per diem in lieu of subsistence (Act Aug. ], 1914) 13 84 
 
 (Act May 10, 1916) 1 84 
 
 Perquisites (Act Mar. 20, 1874) 3 700 
 
 Solicitor of Internal Revenue 349 56 
 
 Storekeepers 3153 84 
 
 (Act Aug. 15, 1876) 1 84 
 
 (Act June 21, 1870) 2 86 
 
 (Act Feb. 24, 1911) 86 
 
 (Act Aug. 27, 1894) 63 87 
 
 Digitized by Microsoft® 
 
INDEX. 927 
 
 rsige. 
 
 COMPENSATION— Continued: ;.eotioii. 
 
 Storekeeper-gaugers (Act Aug. 15, 1876) 1 85 
 
 (Act June 21, 1879) 2 86 
 
 (Act Feb. 24, 1911) 86 
 
 (ActJune28, 1902) 86 
 
 (Act Aug. 27, 1894) 6,3 87 
 
 Superintendent of export and drawback .S] 61 91 
 
 COMPROMISE S— 
 
 Authority, Commissioner, in general 3229 J 49 
 
 _ Secretary o£ the Treasury 3469 G56 
 
 Daily payment into Treasury by collectors of sums offered 
 
 (ActMay 10, 1916) ". 1 129 
 
 National prohibition act, civil causes arising from violation 
 
 of (Act Oct. 28, 1919, Title II) 35 ;!63 
 
 Unauthorized, ground for dismissal of revenue officer 3169 98 
 
 COMPTROLLER OP TREASURY— 
 
 Certificate to, by Commissioner, as to due diligence of 
 
 collectors 3218 136 
 
 Report to Solicitor of Treasury as to collectors' delin- 
 quencies, etc 3217 135 
 
 Suits by, against persons accountable for public money 3624 666 
 
 CONFISCATION— 
 
 Opium (Act Feb. 24, 1919) 1008 427 
 
 White phosphorous matches exported -or attempted to be 
 
 exported (Act Apr. 9, 1912) 11 460 
 
 CONGRESS— 
 
 Acts listed 27 
 
 Powers as to taxation 17 
 
 CONSOLIDATED RETURNS— 
 
 Affiliated corporations, income taxes (Act Feb . 24 , 1919) 240 503 
 
 CONSPIRACY— 
 
 Defrauding United States ^Act ilar. 4, 1909) 37 677 
 
 Injuring officer in person or property. ..(Act Mar. 4, 1909) 21 677 
 
 .Internal revenue officer or agent, ground for dismissal 3169 98 
 
 Preventing persons from holding office.. (Act Mar. 4, 1909) 21 677 
 
 CONSTITUTION OF UNITED STATES— 
 
 Hawaii, applicability to (Act Apr. 30, 1900) 5, 104 618, 619 
 
 National prohibition, amendment 344 
 
 Taxation 17 
 
 CONSTRUCTION— 
 
 Statutes 19 
 
 CONTAGIOUS DISEASES— 
 
 Extension of sick leave in case of (Act Mar. 15, 1898) 7 64 
 
 CONTEMPT— 
 
 Liquor nuisance, violation of injunction against (Act Oct 28, 
 
 1919, Title II) 24 359 
 
 War prohibition act, violation of injunction against viola- 
 tors of (Act Oct. 28, 1919, Title I) 4 348 
 
 CONTINUANCE S— 
 
 Suits or criminal prosecutions 3231 151 
 
 Delinquents for public money, against 957 673 
 
 CONTRACTS— 
 
 Appropriations, future payment of money in excess of 3679 687 
 
 Commissioner's duties - - 321 51 
 
 Government contract defined (Act Feb. 24, 1919) 1 627 
 
 Payments in excess of value of services rendered or articles 
 
 delivered 3648 689 
 
 Sale of cotton for future delivery. {See Cotton futuhes. ) 
 
 Unauthorized contracts prohibited 3732 688 
 
 United States, access of Commissioner to data relating to (Act 
 
 Feb. 24,1919) 1408 633 
 
 Filing copies with Commissioner of Internal Reve- 
 
 nue Digitized by-MiMM^^' ^^i^) ^^os 033 
 
928 
 
 INDEX, 
 
 CONTRIBTJTIONS— 
 
 Official superiors, clerks or employees making to 
 
 Political purposes (Act Aug. 15, 1876) 
 
 CONVERSION— 
 
 Public money. (S«e Embezzlement.) 
 COOPERATIVE ASSOCIATIONS— 
 
 Income taxes, exemption (Act Feb. 24, 1919) 
 
 COPARTNERSHIP. (See Pabtnbeships.) 
 COPIES. (See Certified copies.) 
 CORDIALS. {See Distilled spirits.) 
 CORPORATIONS— 
 
 Banks. (See Banks and bankers.) 
 
 Capital stock, stamp tax on issue (Act Feb. 24, 1919) . 
 
 Stamp tax on sales or transfers (Act Feb. 24, 1919) . 
 
 Capital stock tax. {See Capital stock tax.) 
 
 Certificates of stock, stamp tax (Act Feb. 24, 1919). 
 
 Definition (Act Feb. 24, 1919) 
 
 Excess profits tax. (See Excess profits taxes.) 
 Income taxes. (See Income taxes.) 
 
 Notice to, of sale of stock under distraint 
 
 Occupational tax, reorganized corporation (Act Feb. 24, 
 
 1919) 
 
 "Persons" as including 
 
 Proxies for voting, stamp tax (Act Feb. 24, 1919) . 
 
 Registration of names of persons constituting, special-tax 
 
 purposes ' 
 
 Special excise tax. (See Corporation special excise tax.) 
 Successors and assigns as included in words "company" 
 
 and "association " 
 
 War profits taxes. (See Excess profits taxes.) 
 CORPORATION SPECIAL EXCISE TAX (Act Aug. 5, 
 1909, § 38)— 
 
 Additional tax K5 . 
 
 Refund or abatement (Act Mar. 3, 1913) - 
 
 Agricultural organizations, exemption Ifl. 
 
 Appropriation for expense of collecting tax (Act June 17, 
 
 1910) 
 
 (Act June 25, 1910). 
 Assessment insurance companies, deductions from gross 
 
 income 112. 
 
 Assessment of tax 115- 
 Year 1913 (Act Oct. 3, 1917, Sec. IV (S)) . 
 
 Basis of tax HI . 
 
 Building and loan associations, exemption Ill . 
 
 Business expenses, deduction from gross income 1(2. 
 
 Returns 1(3 . 
 
 Charitable organizations, exemption 1|1 . 
 
 Collection of tax VS. 
 
 Computation of tax 1|3 - 
 
 (Act Oct. 3, 1917, Sec. IV (S)). 
 
 Deductions, gross income 1[2. 
 
 Net income 1J3. 
 
 Deposits by insurance companies, deduction from gross 
 
 income 112. 
 
 Depreciation, deduction from gross income 112 . 
 
 Dividends received, deduction from gross income 112 . 
 
 Return 1f3. 
 
 Divulging information 1(7 . 
 
 Domestic buildingand loan associations, exemption Ifl . 
 
 Educational organizations, exemption 1(1 . 
 
 Examination of corporate books in absence of return 114. 
 
 Exempt corporations 1|1 . 
 
 Expenses, deduction from gross income 1|2 . 
 
 Return 113. 
 
 Digitized by Microsoft® 
 
 Section. 
 . 1784 
 6 
 
 Page. 
 
 703 
 703 
 
 231 496, 497 
 
 3194 
 
 330 
 
 3140 
 
 3233 
 
 557 
 558 
 
 558 
 626 
 
 122 
 
 522 
 
 70 
 
 560 
 
 154 
 70 
 
 725 
 729 
 711 
 
 728 
 728 
 
 717 
 725 
 761 
 711 
 711 
 717 
 722 
 711 
 727 
 722 
 761 
 717 
 722 
 
 717 
 717 
 717 
 722 
 727 
 711 
 711 
 724 
 711 
 717 
 722 
 
INDEX. 
 
 929 
 
 CORPOKATION SPECIAL EXCISE TAX (Act Aug. 5, 
 
 1909, §38)— Continued. Sectian. 
 Foreign corporations -. ^1 
 
 Net income 1[2 
 
 Fraternal beneficiary societies, exemption 1|1 
 
 Gross income, deductions ^2 
 
 Return ,.--^3 
 
 Guaranty deposits, deduction from ^oss income *2 
 
 Horticultural organixations, exemption 'I 1 
 
 Indebtedness, return ^3 
 
 Information obtained by officer, divulging 117 
 
 Inspection of returns. ; 1(6 
 
 (Act June 17, 1910) 
 
 Interest, deduction from gross income 112 
 
 Nonpayment of tax ^5 
 
 Return 'IS 
 
 Jurisdiction, compelling production of books, etc 'IS 
 
 Labor organizations, exemption 11 
 
 Lodges, exemption 11 
 
 Losses, deduction from gross income 12 : . . 
 
 Return 13 
 
 Nature of corporations taxable 11 
 
 Net income, deductions from 13 
 
 Determination 12 , 
 
 Return 13 
 
 Notice of amount of tax 15 
 
 Paid-up capital stock, return 13 
 
 Payment of tax 15 
 
 Penalties 15 
 
 Abatment of penalty tax (Act Mar. 3, 1913) 
 
 Divulging information 17 
 
 False or fraudulent returns 115, 8 
 
 Refusal or neglect to make returns Vl,5,8 
 
 Rate of tax 11 
 
 (Act Oct. 3, 1917, Sec. IV(S)) 
 
 Refund, penalties (Act Mar. 3, 1913) 
 
 Tax , , 18 
 
 Religious organizations, exemption - - - -11 
 
 Remission of tax 18 
 
 Repeal of law, effect (Act Oct. 3, 1917, Sec. IV(S)) 
 
 Returns, amendment by Commissioner 14 
 
 Commissioner to make, when 14 
 
 Extension of time for making 15 
 
 Failure to make 114, 5 
 
 False or fraudulent 115, 8 
 
 Filing in office of Commissioner 16 
 
 Incorrect 14 
 
 Inspection 16 
 
 (Act June 17, 1910) 
 
 Necessity, etc 13 
 
 Public records 16 
 
 (Act June 17, 1910) 
 
 Time for filing 113, 5 
 
 Year 1913 (ActOct. 3, 1917, Sec. IV(S)) 
 
 Taxes paid, deduction from gross income 12 
 
 Return 13 
 
 Testimony of corporate officers in absence of return. . -114, 8 
 
 COSTS— 
 
 Abatement of amount of taxes and revenues collected on 
 
 account of - 3210 
 
 Claimant to seized goods, where probable cause for seizure. . 970 
 
 Collectors charged with money collected for 3218 
 
 Cotton, determining grade of (Act Aug. 11, 1916) 5,19 
 
 Distraint, levy under 3188 
 
 Payment before sale 3193 
 
 Page. 
 711 
 717 
 711 
 
 717 
 722 
 717 
 711 
 722 
 727 
 726 
 728 
 717 
 725 
 722 
 727 
 711 
 711 
 717 
 722 
 711 
 722 
 717 
 722 
 725 
 722 
 725 
 725 
 729 
 727 
 725, 727 
 725, 727 
 711 
 761 
 729 
 727 
 711 
 727 
 761 
 724 
 724 
 725 
 
 724, 725 
 
 725, 727 
 726 
 724 
 726 
 728 
 722 
 726 
 728 
 
 722, 725 
 761 
 717 
 722 
 
 724, 727 
 
 129 
 654 
 136 
 465, 471 
 120 
 121 
 
 140184°— 20- 
 
 -59 
 
 Digitized by Microsoft® 
 
^30 
 
 INBEX. 
 
 COSTS— Continued. 
 
 Forfeitures, deiendant's liability 
 
 Suits for 
 
 Payment to collectors where recovered in suits 
 
 Penalties, defeiidaht'a liability '.'. 
 
 Suitg f or. . . '. ; 
 
 Repayment to collectors, etc. 
 
 Special taxes, prqsecution for failure to keep stamp in con- 
 spicuous place. 
 
 Smts for penalties brought upon information of person other 
 
 than collector '. 
 
 Supreme Court, appeal, etc., to 
 
 COTTON FUTURES (Act Aug. 11, 1916)— 
 
 Act, etc., of official as act of association or corporation 
 
 Adjustment where cotton above or below basis grade 
 
 Agents, appointment and compensation 
 
 Appropriation 
 
 (Act July 3, 1918) 
 Attorneys, per diem in lieu of subsistence (Act May 10, 1916) 
 Bales of cotton, weight where contract or memorandum 
 
 silent 
 
 Bona fide apot markets, designation 
 
 Mode of determining ■. 
 
 Contracts, enforcement where not conforming to require- 
 ments 
 
 Exemption from tax . 
 
 Form and contents 
 
 Prior to September 1, 1916, effect as to. 
 
 Subject to tax 
 
 Costs, determination of grade of cotton 
 
 Disposition 
 
 Cotton standards. 
 
 Definitions, contract of sale 
 
 Person 
 
 Differences above or below contract price where cotton above 
 
 or below basis grade - 
 
 Findings of Secretaiy of Agriculture 
 
 Forma, official cotton standards 
 
 Notice of spot markets 
 
 Official cotton standards of United States 
 
 Partial invalidity of act, effect 
 
 Payment, effect as to State laws and taxes 
 
 Stamps 
 
 Penalties, failure to pay tax or other violation of act 
 
 Proceeds from fm-nishing cotton standard forms, disposition 
 
 of 
 
 Rate of lax 
 
 Records 
 
 Regulations 
 
 Enforcement of act 
 
 Repeal of former act, effect 
 
 Returns _ 
 
 Revenue laws applicable 
 
 Short title of act 
 
 Spot markets, designation 
 
 ■ Mode of determining 
 
 Stamps, payment of tax by 
 
 Standards for cotton 
 
 Title of act 
 
 Weight of bales where contract or memorandum silent 
 
 Witnesses, incriminating testimony 
 
 Sectioa. 
 
 Page". 
 
 974 
 
 646 
 
 969 
 
 646 
 
 3216 
 
 135 
 
 974 
 
 646 
 
 969 
 
 646 
 
 3220 
 
 137 
 
 3239 
 
 157 
 
 3214 
 
 134 
 
 1001 
 
 653 
 
 2 
 
 463 
 
 6 
 
 466 
 
 13 
 
 470 
 
 18,19 
 
 471 
 
 1 
 
 57 
 
 1 
 
 84 
 
 4 
 
 464 
 
 7 
 
 467 
 
 8 
 
 • 467 
 
 12 
 
 469 
 
 5 
 
 464 
 
 6A 
 
 467 
 
 10 
 
 469 
 
 4 
 
 464 
 
 20 
 
 472 
 
 3,5 
 
 464 
 
 6A 
 
 467 
 
 10 
 
 469 
 
 5 
 
 465 
 
 19 
 
 471 
 
 9 
 
 468 
 
 2 
 
 463 
 
 2 
 
 463 
 
 6 
 
 466 
 
 5 
 
 466 
 
 9 
 
 468 
 
 7 
 
 467 
 
 9 
 
 468 
 
 22 
 
 472 
 
 17 
 
 471 
 
 11 
 
 469 
 
 14,15 
 
 470 
 
 19 
 
 471 
 
 3 
 
 464 
 
 13 
 
 470 
 
 13 
 
 469 
 
 5 
 
 466 
 
 21 
 
 472 
 
 13 
 
 470 
 
 13 
 
 470 
 
 1 
 
 463 
 
 7 
 
 467 
 
 8 
 
 467 
 
 11 
 
 469 
 
 9 
 
 468 
 
 1 
 
 463 
 
 4 
 
 464 
 
 16 
 
 470 
 
 Digitized by Microsoft® 
 
INDEX. 9S1 
 
 COTTNSEL- S^«„,. P,g,_ 
 
 Authority where appointed by Attorney General (Act June 
 
 ^30,1906) : \ 658 
 
 Employment. 189, 364 657 
 
 Officers of United States and persons connected with depart- 
 ments acting as (Act Mar. 4,1909) 109 702 
 
 Pending claims, time within which person formerly in de- 
 partment may prosecute ^... 190 703 
 
 TreasuryDepartment, practicing before. (Act July 7,1884) 3 G80 
 
 (Act Apr. 27, 1916) 1 691 
 
 COTJKTTEBPEmKrG— 
 
 Public records, bonds, bids, etc (Act Mar. 4,1909) 28 679 
 
 Securities of United States (Act Mar. 4, 1909) 147, 148 680 
 
 Stamps (ActMar. 4,1909) 147,148 680 
 
 (Act Feb. 24, 1919) 1103 555 
 
 Fermented liquor 3346 314 
 
 ; Spirits bottled in bond (ActMar. 8,1897) 7 295 
 
 COTJNTY— 
 
 Definition 2 70 
 
 COURT OF CLAIMS— 
 
 Appeals to Supreme Court (Act Mar. 3, 1911) 243 C52 
 
 CaEDITS— 
 
 Excess profits tax purposes. (Ses Excess profits taxes. ) 
 
 Income tax purpoeea. (See Income taxes.) 
 
 Special tax paid under sections 407, 408, Revenue Act of 
 1916 (Act Feb. 24, 1919) 1001 184 
 
 Suits of United States againet individuals 951 685 
 
 CEIMES AND OFFENSES. (-See Penalties.) 
 CITRTESY— 
 
 Estatetax (Act Feb. 24, 1919) 402 526 
 
 CtrSTOMHOTJSE— 
 
 Stamp taxes, entry for withdrawal of goods from bonded 
 
 warehouse (Act Feb. 24, 1919) 560 
 
 CUSTOMHOUSE BROKERS— 
 
 Definition (ActFeb. 24, 1919) 1001(4) 180 
 
 Specialtax (ActFeb. 24, 1919) 1001(4) 180 
 
 CYCLONE INSURANCE— 
 
 Exemption of companies from income tax (Act Feb. 24, 
 
 1919) 231 497 
 
 Insurance tax. {See Insueancb tax.) 
 
 D. 
 
 DAMAGES— 
 
 Intoxicated person, injm-ies caused by (Act Oct. 28, 1919, 
 Title II) 
 
 Repayment to collectors, etc 
 
 DEATH— 
 
 Collector, transfer of lists, uncollected taxes, etc., to suc- 
 cessor 
 
 Gifts in contemplation of, estate tax (Act Feb. 24, 1919) 
 
 Lien for unpaid tax on property transferred in contem- 
 plation of (ActFeb. 24, 1919) 
 
 Special-tax payer, effect as to carr3dng on business 
 
 DEBENTURES- 
 
 Stamp taxes, rate (Act Feb. 24, 1919) 557 
 
 DEBTS— 
 
 Due United States, priority 3466 685 
 
 Withholding in paying judgments or allowing claims 
 
 (Act Mar. 3, 1875) 684 
 
 Sale of ai-ticles, debt contracted through, with intent to 
 evade tax Digitized- by MiCTOSOft® 3454 596 
 
 20 
 3220 
 
 357 
 137 
 
 3219 
 402 
 
 137 
 526 
 
 409 
 3241 
 
 531 
 
 158 
 
932 
 
 INDEX. 
 
 DEDUCTIONS-^ Section. 
 
 Debts due United States in paying judgments or allowing 
 claims : (Act Mar. 3, 1875) 
 
 Employment of child labor, computation of net profits in 
 computing tax (Act Feb. 24, 1919) 1201 
 
 Estate tax purposes. {See Estate tax.) 
 
 Excess profits tax purposes. {See Excess pkopits taxes.) 
 
 Income tax purposes. {See Income taxes.) 
 
 Legacies, from (Act Apr. 12, 1902) 8 
 
 DEEDS— 
 
 Real estate acquired by United States 
 
 Sales of real estate of collector in proceeding to collect dues. 
 
 Stamp tax, rate (Act Feb. 24, 1919) 
 
 Tax sales 3197-3199 
 
 DEFINITIONS— 
 
 Admissible assets (Act Feb. 24, 1919) 
 
 Admission (Act Feb. 24, 1919) 
 
 Adulterated butter (Act May 9, 1902) 
 
 Affiliated corporations (Act Feb. 24, 1919) 
 
 Alcohol 
 
 (Act Oct. 28, 1919, Title III) 
 
 Alcoholic spirit 
 
 Application (Act Oct. 28, 1919, Title II) 
 
 Association 
 
 Bank 
 
 Bankers 
 
 Beer, wine, or other intoxicating * * * liquors (Act 
 
 Oct. 28, 1919, Title I) 
 
 Bond (Act Oct. 28, 1919, Title II) 
 
 Borrowed capital (Act Feb. 24, 1919) 
 
 Brewers 
 
 Brokers (Act Feb. 24, 1919) 
 
 Butter (Act Aug. 2, 1886) 
 
 (Act May 9, 1902) 
 
 Cheese (Act June 6, 1896) 
 
 Qgars 
 
 Cigar-maker 
 
 Cigarettes 
 
 Circus (Act Feb. 24, 1919) 
 
 Collector (Act Feb. 24, 1919) 
 
 Commissioner (Act Feb. 24, 1919) 
 
 (Act Oct. 28, 1919, Title II) 
 
 Company 
 
 Container (Act Oct. 28, 1919, Title III) 
 
 Contract of sale (Act Aug. 11, 1916) 
 
 Corporations (Act Feb. 24, 1919) 
 
 County - 
 
 Customhouse broker (Act Feb. 24, 1919) 
 
 Dealer (Act Feb. 24, 1919) 
 
 Dealer in filled cheese (Act June 6, 1896) 
 
 Dealer in leaf tobacco 
 
 Distilled spirits 
 
 Distiller 
 
 Dividend (Act Feb. 24, 1919) 
 
 Domestic (Act Feb. 24, 1919) 
 
 Executor (Act Feb. 24, 1919) 
 
 Fermented liquors 
 
 Fiduciary (Act Feb. 24, 1919) 
 
 Filled cheese (Act June 6, 1896) 
 
 Fiscal year (Act Feb. 24, 1919) 
 
 Foreign (Act Feb. 24, 1919) 
 
 Gallon 
 
 Government contract (Act Feb. 24, 1919) 
 
 Gross income (Act Feb. 24, 1919) 
 
 Inadmissable assets (Act Feb. 24, 1919) 
 
 Intangible property. . -Bigitized-by M/ifSfeS'S"® 24, 1919) 
 
 Page. 
 
 684 
 565 
 
 706 
 
 3208 
 
 128 
 
 3217 
 
 135 
 
 
 560 
 
 97-3199 
 
 122-125 
 
 325(o) 
 
 800(c) 
 
 4 
 
 518 
 540 
 438 
 
 240 
 
 504 
 
 3248 
 
 190 
 
 1 
 
 365 
 
 3248 
 
 190 
 
 1 
 
 350 
 
 5 
 
 70 
 
 3407 
 
 575 
 
 3407 
 
 575 
 
 1 
 
 347 
 
 1 
 
 350 
 
 325(a) 
 
 3244(1) 
 
 1001(1) 
 
 1 
 
 518 
 162 
 179 
 430 
 
 4 
 
 438 
 
 1 
 
 445 
 
 3394 
 
 400 
 
 3244(10) 
 
 395 
 
 3394 
 
 400 
 
 1001(6) 
 1,400 
 
 1 
 
 180 
 
 627, 525 
 
 627 
 
 1 
 
 350 
 
 5 
 
 70 
 
 1 
 
 365 
 
 2 
 
 463 
 
 1 
 
 626 
 
 2 
 
 70 
 
 '''l^ 
 
 180 
 631 
 
 3 
 
 175 
 
 3244 
 
 375 
 
 3248 
 
 190 
 
 3247 
 
 189 
 
 201, 300 
 1 
 
 474, 513 
 626 
 
 200, 400 
 3339 
 
 820, 525 
 308 
 
 200 
 
 474 
 
 2 
 
 445 
 
 200, 300 
 
 1 
 
 473, 513 
 626 
 
 3250 
 
 192 
 
 1 
 
 627 
 
 213, 233 
 325(o) 
 
 481,497 
 518 
 
 325(a) 
 
 618 
 
INDEX, 
 
 933 
 
 DEFINITIONS— Continued. 
 
 Intoxicating liquor (Act Feb. 14, 1917) 
 
 (Act Oct. 28, 1919, Title II) 
 
 Invested capital (Act Feb. 24, 1919) 
 
 Liquor (Act Feb. 14, 1917) 
 
 (Act Oct. 28, 1919, Title II) 
 Manufacturer of adulterated butter. . . . (Act May 9, 1902) 
 
 Manufacturer of cigars 
 
 (Act Feb. 24, 1919) 
 
 Manufacturer of cigarettes (Act Feb. 24, 1919) 
 
 Manufacturer of filled cheese (Act June 6, 1896) 
 
 Manufacturer of oleomargarine (Act Aug. 2, 1886) 
 
 Manufacturer of process or renovated butter (Act May 9, 
 
 1902) 
 
 Manufacturer of snuff (Act Aug. 27, 1894) 
 
 Manufacturer of stills 
 
 Manufacturer of tobacco (Act Aug. 27, 1894) 
 
 (Act Feb. 24, 1919) 
 Military or na\al forces of the United States (Act Feb. 24, 
 
 1919) 
 
 Mixed flour (Act June 13, 1898) 
 
 Net income (Act Feb. 24, 1919) 
 
 Net loss (Act Feb. 24, 1919) 
 
 Oath 
 
 Obligation or other security of the United States (Act Mar. 
 
 4, 1909) 
 
 Oleomargarine (Act Aug. 2, 1886) 
 
 Paid (Act Feb. 24, 1919) 
 
 Paid or accrued (Act Feb. 24, 1919) 
 
 Paid or incurred (Act Feb. 24, 1919) 
 
 Pawnbroker (Act Feb. 24, 1919) 
 
 Peddlers of tobacco 
 
 Permit (Act Oct. 28, 1919, Title II) 
 
 Person -A 
 
 (Act Aug. 11, 1916) 
 
 (Act Feb. 24, 1919)/ 
 
 (Act Oct. 28, 1919, Title II) 
 
 Personal service corporation (Act Feb . 24, 1919) 
 
 Present war (Act Feb. 24, 1919) 
 
 Prewar period (Act Feb. 24, 1919) 
 
 Private dwelling (Act Oct. 28, 1919, Title II) 
 
 Process butter (Act May 9, 1902) 
 
 Proof spirit 
 
 Pure sweet wine (Act Oct. 1, 1890) 
 
 Rectifier 
 
 Regulation (Act Oct. 28, 1919, Title II) 
 
 Renovated butter (Act May 9, 1902) 
 
 Retail dealer in adulterated butter (Act May 9, 1902) 
 
 Retail dealer in filled cheese (Act June 6, 1896) 
 
 Retail dealer in liquor 
 
 Retail dealer in malt liquors 
 
 Retail dealer in oleomargarine (Act Aug. 2, 1886) 
 
 Secretary (Act Feb. 24, 1919 
 
 Ship broker (Act Feb. 24, 1919) 
 
 Spirits 
 
 State 
 
 Tangible property (Act Feb. 24, 1919) 
 
 Taxable year (Act Feb. 24, 1919){ 
 
 Taxpayer (Act Feb. 24, 1919) 
 
 Theater (Act Feb. 24, 1919 
 
 United States (Act Feb. 24, 1919) 
 
 Vehicle 
 
 War prohibition act: ! VmiW(I.M mm^M, "Title" I) 
 
 Section. 
 
 1 
 
 1 
 
 326 
 
 1 
 
 1 
 
 4 
 
 3244(10) 
 
 1002 
 
 1002 
 
 3 
 
 3 
 
 3244(2) 
 
 69 
 
 1002 
 
 1 
 
 35 
 
 212, 232 
 
 204 
 
 1 
 
 147 
 
 2 
 
 200 
 
 200, 300 
 
 200 
 
 1001(2) 
 
 3244 
 
 1 
 
 1,3140,1 
 
 3173/ 
 
 2 
 
 1,200,1 
 
 1308(d)/ 
 
 1 
 
 200, 300 
 
 1 
 
 310 
 
 25 
 
 4 
 
 3249 
 
 43 
 
 3244(3) 
 
 1 
 
 4 
 
 4 
 
 3 
 
 3244(4) 
 
 3244(5) 
 
 3 
 
 1 
 
 1001(3) 
 
 3248 
 
 3140 
 
 325(a) 
 
 200,300,1 
 
 1207/ 
 
 1 
 
 1001(5) 
 
 1,200 
 
 4 
 
 3 
 
 1 
 
 185 
 349 
 518 
 185 
 849 
 174 
 395 
 182 
 182 
 175 
 172 
 
 174 
 372 
 163 
 372 
 182 
 
 627 
 
 451 
 
 481, 497 
 
 476 
 
 70 
 
 680 
 430 
 474 
 474, 513 
 474 
 179 
 388 
 350 
 
 70,104 
 
 403 
 
 . 626, 
 
 820, 629 
 
 350 
 
 474, 513 
 
 627 
 
 516 
 
 360 
 
 439 
 
 190 
 
 327 
 
 164 
 
 350 
 
 439 
 
 174 
 
 175 
 
 166 
 
 170 
 
 173 
 
 626 
 
 179 
 
 190 
 
 70 
 
 518 
 
 474, 513, 
 
 567 
 
 627 
 
 180 
 
 G26, 820 
 
 70 
 
 70 
 
 347 
 
934 
 
 INDEX. 
 
 DEFINITIONS— Continued. Section. 
 
 , White .phosphorous matches (Act Apr. 9, 1912) 1 
 
 Wholesale dealer in adulterated butter.. ^Act May 9,1902) 4 
 
 Wholesale dealer in fUled cheese (Act June 6,1896) 3 
 
 Wholesale dealer in malt liquor 3244(5) 
 
 Wholesale dealer in oleomargarine (Act Aug. 2, 1886) 3 
 
 Wholesale liquor dealer 3244(4) 
 
 Wine spirits '. (Act Oct. 1,1890) 43 
 
 Withholding agent.;. (Act Feb. 24, 1919) 200 
 
 DEMAND— 
 
 Payment of taxes 3184, 3185 
 
 DENATURED ALCOHOL. (See National prohibition.) 
 Farmers, manufacture of alcohol by, for denaturation (Act 
 
 Oct. 3, 1913) IV(N) 
 
 Removal of spirits for denaturation free of tax (Act Feb. 24, 
 
 1919) 603 
 
 Use in manufacture of ether, etc (Act Mar. 2, 1907) 1 
 
 Withdrawal of alcohol when rendered unfit for beverage, 
 
 etc., purposes (Act June 7, 1906) 
 
 DEPENDENTS— 
 
 Estate tax, deduction of amoimts expended for support (Act 
 
 Feb. 24, 1919) 403 
 
 Income taxes, credits (Act Feb. 24, 1919) 216 
 
 DEPLETION— 
 
 Allowance, income taxes (Act Feb. 24, 1919) 214,234 
 
 DEPOSITIONS— 
 
 Subpoenas to witnesses in claim cases 184 
 
 DEPOSITOEIES— 
 
 Designation by Secretary of the Treasury 3211, 3620 
 
 Embezzlement of public money (Act Mar. 4, 1909) 88 
 
 DEPEBCIATION— 
 
 Allowance, income taxes (Act Feb. 24, 1919) 214, 234 
 
 DEPUTY COLLEOTOBS— 
 
 Administration of oaths 3165 
 
 Appointment (Act Mar. 1, 1879) 2 
 
 (Act Oct. 22, 1913) 1 
 
 Authority and duties (Act Mar. 1, 1879) 2 
 
 Bonds (Act Mar. 1, 1879) 2 
 
 ^ _ (Act Oct. 22, 1913) 1 
 
 Canvass of district for objects of taxation.-. . . : ; . 3172 
 
 Collection of taxes, duty 3183 
 
 Compensation ' (Act Mar. 1, 1879) 2 
 
 Performance of duties of collector 3150 
 
 Special duty in other district (Act Apr. 17, 1900) 1 
 
 Detailing for special duty in other distiicts (Act Apr. 17, 
 
 1900) :.; 1 
 
 Disclosure of information acquired in discharge of official 
 duties 
 
 3167 
 3185, 
 -3195 
 
 Distraint proceedings by 1 m 87 
 
 f 3177 
 Entry upon premises where taxable articles are kept I'^iso ^181 
 
 Hawaii f Act Apr. 30, 1900) ' 87 
 
 Number allowed in commission (Act July 7, 1884) 1 
 
 Porto Rico (Act June 29, 1906) 1,2 
 
 Receipts given, when 3183 
 
 (Act Aug. 27, 1894) 37 
 
 Records, sales of land for taxes 3203,3204 
 
 Repayment of sums recovered against 3220 
 
 Responsibility of collector for acts of 3149 
 
 (Act Mar. 1, 1879) 2 
 
 Returns made by, when 3173, 3176 
 
 Senior deputy in charge 3149 
 
 Service of summons.* ,. n- ■■««' .„^. 3174 
 
 Stamps, issuance befoi(3P^SSft.Qy.M(«<aSIli®l, 1879) 1 
 
 Page. 
 457 
 174 
 175 
 171 
 173 
 166 
 327 
 474 
 
 116, 117 
 
 302 
 
 304 
 300 
 
 1-4 298-300 
 
 527 
 487 
 
 485, 499 
 
 684 
 
 130, 662 
 668 
 
 485, 499 
 
 95 
 76 
 
 78 
 77 
 77 
 78 
 104 
 115 
 76 
 81 
 81 
 
 81 
 
 96 
 
 117, 
 
 119-122 
 
 110, 
 
 111 
 
 619 
 
 90 
 
 620, 621 
 
 115 
 
 115 
 
 126 
 
 137 
 
 80 
 
 77 
 
 104, 108 
 
 80 
 
 107 
 
 100 
 
INDEX. 935 
 
 USSIONERS OF 
 
 Appointment. 
 
 DEPUTY COMMISSIONERS OF INTERNAL REVE 
 NTJE— 
 
 Section; 
 
 , Pago. 
 
 ' ,322 
 
 55 
 
 n(N) 
 
 55 
 
 1 
 
 56 
 
 1301(a) 
 
 55 
 
 1 
 
 81 
 
 323 
 
 55 
 
 1301(a) 
 1301(a) 
 
 55 
 
 55 
 
 323 
 
 55 
 
 1301(a) 
 
 55 
 
 1 
 
 78 
 
 1 
 
 78 
 
 (Act Oct. 3, 1913) 
 
 (Act Oct. 6, 191V) 
 
 (Act Feb. 24 1919) 
 Detailing deputy collectors for special duty in other districts 
 .^ . (Act Apr. 17, 1900) 
 Duties 
 
 (Act' Feb.' 24,' igig) 
 
 Number (Act Feb. 24, 1919) 
 
 Salary -. _ . 
 
 (A'ct'Feb.'24,'i9i9) 
 DEPUTY MARSHALS— 
 
 Appointment (Act Oct. 22, 1913) 
 
 Bonds (Act Oct. 22, 1913) 
 
 DESCE NT- 
 Exemption of value of property acquired by, from income 
 
 taxes (Act Feb. 24, 1919) 213 482 
 
 DESTRUCTION— 
 
 Abandoned tobacco, cigars, etc 3369 384 
 
 Distilled spirits, by accident 3221-3223 142-144 
 
 Property, to prevent seizure (Act Mar. 4, 1909) 65 674 
 
 Public records (Act Mar. 4, 1909) 128,129 ' 678 
 
 Useless papers 692 
 
 DEVISES— 
 
 Charitable, etc., uses, deduction for estate tax purposes 
 
 (Act Feb. 24, 1919) 403 528 
 
 Income taxes, exemption (Act Feb . 24, 1919) 213(5) 482 
 
 DISBURSING OFFICERS AND AGENTS— 
 
 Accounts 3622,3633 66'3, 606 
 
 Bonds 3144 75 
 
 Collectors acting as 3144 75 
 
 Deposit of money 3620 6C2 
 
 Entry of sums received and of transfer and payment 3643 667 
 
 Payment of money to Treasurer or depositories 3621 663 
 
 DISCLOSURE OF INFORMATION— 
 
 Inspection of returns (Act Feb. 24, 1919) 257 510 
 
 Prohibition against, where acquired in discharge of official 
 
 duties 3167 96 
 
 (Act Aug. 5, 1909) 38 727 
 
 DISCONTINUANCE— 
 
 Prosecution under section 3257 3230 151 
 
 Stamps, authority of Commissioner (Act Feb. 24, 1919) 606 269 
 
 DISTILLED SPIRITS. {See National peohibition.) 
 
 Abatement of tax, alcohol withdrawn for scientific purposes 
 
 (Act June 4, 1912) 258 
 
 Accessibility of distillery 3275 224 
 
 Accidental destruction, abatement of tax, etc 3221-3223 142-144 
 
 (Act Mar. 1, 1879) 6 265 
 
 Suspension of business caused by 3310 266 
 
 Accoimts of storekeepers as to materials used in distilleries . . 3302 260 
 
 Adding substances to create fictitious proof 3252 207 
 
 Advertisements as to intoxicating liquors in District of 
 
 Columbia (Act Feb. 24, 1919) 1407 298 
 
 States (Act Mar. 3, 1917) 5 296 
 
 Affixing stamps 3322 276 
 
 Alcohol, transfer by pipes 3287 234 
 
 Withdrawal for scientific purposes 3297 257 
 
 (Act May 3, 1878) 257 
 
 (Act June 4, 1912) 258 
 
 Digitized by Microsoft® 
 
936 moEX. 
 
 DISTILLED SPIRITS— Continued. Section. Page. 
 Allowance for leakage or loss, domestic alcohol withdrawn 
 
 f or denaturation (Act Mar. 2, 1907) 3 300 
 
 During transportation (Act Dec. 20, 1879) 1, 2 285 
 
 Removal of spirits for denaturation . (Act Feb . 24, 1919) 603 304 
 Withdrawal of spirits from warehouse (Act Aug. 27, 
 
 1894) 50 244 
 
 (Act Mar. 3, 1899) 1, 2 245, 246 
 
 (Act Jan. 13, 1903) 247 
 
 Alteration, marks or brands 3326 278 
 
 Stamps (Act Mar. 3, 1897) 7 295 
 
 Arrest of persons operating illicit distillery. (Act Mar. 1, 1879) 9 231 
 
 Assessment, deficiencies, etc., in certain cases, relief from.. 3309 263 
 
 (Act Mar. 1, 1879) 6 265 
 
 Tax on spirits removed without deposit in warehouse.. 3253 207 
 
 Attempt, defrauding United States of tax-. 3257 209 
 
 Evasion of tax, penalty 3256 208 
 
 Bay rum from Porto Rico (ActFeb. 4, 1909) 197 
 
 Beverages (Act Oct. 3, 1917) 300-306 861-865 
 
 Blended whiskies (Act Feb. 24, 1919) 605 196 
 
 Board bills of gangers and storekeeper-gaugers (Act Feb. 24, 
 
 1919) 621 191 
 
 Boats, distilling on board of, prohibited 3266 220 
 
 Bonds, carrying on distillery without giving 3281 227 
 
 (Act Feb. 8, 1875) 16 160,228 
 
 Distillers {3261,1162} ^H, 215 
 
 (Act Aug. 27, 1894) 67 212 
 
 (Act Feb. 24, 1919) 602 212 
 
 Rectifiers of spirits (Act Feb. 24, 1919) 605 196 
 
 Removal of spirits to distillery warehouse 3293 239 
 
 (Act Aug. 27, 1894) 49 241 
 
 Books, distillers 3303-3305 260, 261 
 
 (Act Aug. 27, 1894) 62 274 
 Furnishing or using alcohol withdrawn for denaturation 
 
 (Act June 7, 1906) 1 298 
 
 Rectifiers and wholesale dealers 3318 272 
 
 Bottling in bond (Act Mar. 3, 1897) 291-295 
 
 Gin, for export (Act Feb. 24, 1919) 626 286 
 
 Brands, alteration of 3326 278 
 
 Cases of spirits bottled in bond (Act Mar. 3, 1897) 1 292 
 
 Effacing from empty casks 3324 277 
 
 Spirits removed from warehouse 3295 255 
 
 Brandy made from apples, peaches, etc., exemptions 3255 207 
 
 Breaking locks and seals of distillery 3268 221 
 
 Cancellation, export bond (Act June 9, 1874) 1 283 
 
 Transportation bond (Act June 9, 1874) 1 284 
 
 Capacity tax 3309 263 
 
 (Act Feb. 24, 1919) 602 236 
 
 Carrying on business after notice of suspension.' 3310 266 
 
 Casualty, relief from assessment in case of 3221-3223 142-144 
 
 (Act Mar. 1, 1879) 6 265 
 Central denaturing bonded warehouses, establishment 
 
 (Act Mar. 2, 1907) 2 300 
 
 Central distilling and denaturing plants. . (Act Oct. 3, 1913) IV(N) 302 
 Changes of apparatus and fastenings, Commissioner's 
 
 authority 3270 222 
 
 Chloroform, use of denatured alcohol in manufacture of 
 
 (Act Mar. 2, 1907) 1 300 
 
 Clearance certificate, exportation of spirits (Act June 9, 
 
 1874) 1 283 
 
 Collectors, accounts as to shipments in bond 3444 589 
 
 Accountability for stamps 3314 269 
 
 Colleges, alcohol withdrawn for scientific purposes 3297 257 
 
 rAct May 3, 1878^ 257 
 
 Commandeering mj?P.^M Mj^M^. A lm\ 16 2^3 
 
INDEX. 
 
 937 
 
 DISTIIiLED SPIRITS— Continued. Section. Page. 
 
 Compliance with law as condition precedent to carrying on 
 
 business 3280 227 
 
 Concealment of spirits contrary to law 3296 256 
 
 Control of general bonded warehouses. . . (Act Aug. 27, 1894) 51 247 
 
 Cordials (Act Feb. 24, 1919) 605 196 
 
 Counterfeiting stamps (Act Mar. 3, 1897) 7 295 
 
 Customs bonded warehouse, payment of taxes on spirits in 
 
 (Act Feb. 24, 1919) 600 195 
 
 Definitions, distilled spirits 3248 190 
 
 Distiller 3247 189 
 
 Gallon 3250 192 
 
 Proof spirit 3249 190 
 
 Denatured alcohol. {See National prohibition.) 
 
 Manufacture by farmers of alcohol for denaturation 
 
 (Act Oct. 3, 1913) IV(N) 302 
 
 Removal of spirits for denaturation free of tax (Act 
 
 Feb. 24,1919) 603 304 
 
 Use in manufacture of ether, chloroform, etc. (Act 
 
 Mar. 2, 1907) 1 300 
 
 Withdrawal of alcohol when rendered unfit for bever- 
 age, etc. , purposes (Act June 7, 1906) 1-4 298-300 
 
 Detention of packages on suspicion 3298 258 
 
 Distance from rectifying establishment in which distilling 
 
 may be carried on 3280 227 
 
 Distillers, books required to be kept by. .(Act Aug. 27, 1894) 62 274 
 
 Monthly examination of returns, assessments, etc 3309 263 
 
 (Act Feb. 24, 1919) 602 264 
 
 Returns as to production 3307 262 
 
 Number of barrels distilled 3308 263 
 
 Special tax (Act Feb. 24, 1919) 1001(12) 181 
 
 Penalty for doing business without paying (Act 
 
 Feb. 8, 1875) 16 160 
 
 Wholesale liquor dealers 3244(4) 166 
 
 Distilling on certain premises prohibited 3266 220 
 
 Distraint, collection of tax on spirits removed without 
 
 deposit in warehouse 3253 207 
 
 Sale, marks, brands, etc., to be affixed by officer 3458 598 
 
 District of Columbia, advertisements of intoxicating liquors 
 
 in -. (Act Feb. 24, 1919) 1407 298 
 
 Doublers 3269 221 
 
 Drawback 3329 279 
 
 Fraudulent claim for 3330 281 
 
 Drawing off water, cleansing worm tubs, etc 3286 234 
 
 Dwelling houses, distilling in, prohibited 3266 220 
 
 Effacing stamps on imported packages.. (Act Mar. 1, 1879) 12 290 
 
 Emptying fermenting tubs 3285 234 
 
 (Act Feb. 24, 1919) 602 234 
 
 Entry, etc., of spirits removed to distillery warehouse 3293 239 
 
 Ether, use of denatured alcohol in manufacture of (Act 
 
 Mar. 2, 1907) 1 300 
 
 Ethyl alcohol, exemption of distillers of . (Act Feb. 24, 1919) 602 212, 233 
 
 Evasion of tax, penalty 3256 208 
 
 Examination of distilleries, breaking up ground or walls 3278 226 
 
 Furnishing facilities 3277 226 
 
 Power of officers 3276 225 
 
 Exemptions, brand jr made from apples, peaches, etc 3255 207 
 
 Distilleries having daily capacity of 30 gallons or less 
 
 (Act Mar. 1,1879) 5 208 
 
 Expenses, installation of meters, tanks, pipes, etc. (Act 
 
 Feb. 24,1919) 607 191 
 
 Export, bond (Act June 9, 1874) 1 281 
 
 Bottling in bond for (Act Mar. 3, 1897) 3 294 
 
 Gin .„...,..--,-^-..-.(ActFeb, 24, 1919) 626 286 
 
 Entry, filing .QigiflzedbyMl.qk.t June 9, 1874) 1 283 
 
 Manufacture of certain articles from domestic spirits in 
 
 bonded warehouses 3433 607 
 
938 INDEX. 
 
 DISTILLED SPIRITS— Continued. 
 
 Export— Continued. Section. rage. 
 
 Stamps 3314,3330 269,281 
 
 Tax-paid epirits :... ' '3329 279 
 
 Transfer to tank cars for (Act Feb. 24, 1919) 624 286 
 
 Transportation bond on withdrawal of spirits for (Act 
 
 June 9, 1874) ...;.. 1 283 
 
 Withdrawal from bonded warehouses 3330 281 
 
 Farmers, manufacture of alcohol for denaturation (Act Oct. 
 
 3,1913) IV(N) 302 
 
 Fermentation period 3310 266 
 
 Filtration-aeration process '.' 3285 234 
 
 (Act Feb. 24,1919) 602 234 
 
 Floor tax (Act Feb. 24, 1919) 604,605 195,196 
 
 Foods, prohibition of use of, in production of distilled spirit^ 
 
 for beverage purposes (Act Aug. 10, 1917) 15 200 
 
 (Act Nov. 21, 1918) 1 204 
 
 Forfeitures, carrying on business after notice of suspension. . 3310 266 
 Carrying on business without payment of special tax or 
 
 givingbond (ActFeb. 8,1875) 16 228 
 
 Defrauding or attempting to defraud United States of 
 
 tax 3257 209 
 
 Evasion of tax 3256 208 
 
 Manner of disjjosing of forfeited spirits 3450 593 
 
 Removal of spirits before sunrise and after sunset 3327 279 
 
 Stills or distilling apparatus unregistered.^ 3258 209 
 
 Unlawful removal of spirits from distillery 3299 258 
 
 Unstamped packages 3289 238 
 
 Forging stamps (Act Mar. 3,1897) 7 295 
 
 Fractional parts of gallon, taxation 3251 192 
 
 (Act Aug. 27, 1894) 48 193 
 
 (Act Feb. 24, 1919) 600 193 
 
 Fraud, false entries in books of distillers 3305 261 
 
 False weights or measures 3306 262 
 
 Falsely making stamps (Act Mai-. 3, 1897) 7 295 
 
 Inspection, gauging, etc 3292 239 
 
 Rectifier 3317 271 
 
 Fruit brandy, special bonded warehouses.(ActMar. 3,1877) 1-11 251-254 
 
 (Act Oct. 18, 1888) 254 
 
 Fm-naces, etc 3269 221 
 
 Gangers, accounts 1 (Act Apr. 17, 1900) 1 87 
 
 Appointment 3156 88 
 
 Assignment to distilleries, etc (Act Sept. 8, 1916) 402 90 
 
 ' (Act Feb. 24, 1919) 621 191 
 
 Bonds, approval by Comniissioner 3156 88 
 
 Compensation (Act Feb. 24, 1919) 621 191 
 
 Employing distiller, etc., to use brands to perform hie 
 
 duties ..-....:....... 3290 239 
 
 False or fraudulent inspection, etc 3292 239 
 
 Fees 3157 89 
 
 Per diem in lieu of subsistence .... (Act May 10, 1916) 1 84 
 
 Report as to spirits to be exported. -(Act June 9,1874) 1 283 
 
 Returns 3291 239 
 
 Supervision and direction of 3156 88 
 
 Gauging, instruments, prescribing use 3249 190 
 
 Rectified spirits 3320 275 
 
 fAct Mar. 4, 1915) 1 275 
 
 Spirits intended for rectification (Act July 16, 1892) 272 
 
 Removed from warehouse 3295 255 
 
 Removed to warehouse 3287 234 
 
 General bonded warehouses for spirits other than fruit 
 
 brandy ". '...... (Act Aug. 27, 1894) 51-59 247-250 
 
 Gin, bottling in bond for export (Act Feb. 24, 1919) 626 286 
 
 Taxon (Act Feb. 24, 1919) 605 196 
 
 Hospitals, withdrawal of alcohol for use in 3297 257 
 
 Digitized by Migc&SMM^ 3, 1878) 257 
 
 (Act June 4, 1912) 258 
 
INDEX. 
 
 939 
 
 DISTILLED SPIBITS— Continued. 
 
 Hydrometers, prescribing use ,..,....- 
 
 Supplying, etc 
 
 Imitation stamps, affixing to packages. . (Act Feb. 8, 1875) 
 Imports, liquo:fs in customs bonded warehouse (Act Feb. 24, 
 
 1919) 
 
 Perfumes containing distilled spirits. (Act Feb. 24, 1919) 
 
 Prohibition against (Act Aug. 10, 1917) 
 
 (Act Nov. 21, 1918) 
 (Act Feb. 24, 1919) 
 
 Stamping of packages. (Act Mar. 1, 1879) 
 
 Inspection, books of distillers 
 
 Sjpirits bottled in bond (.Vet Mar. 3, 1897) 
 
 Insurance of spirits, allowance for leakage or loss during 
 
 transportation (Act Dec. 20, 1879) 
 
 Loss or destruction 
 
 Interest of internal revenue officer in production, etc., of. . 
 Interstate shipments, penalty for making (Act Mar. 4, 1909) . 
 
 Joint and several liability for taxes 
 
 Judicial sale of spirits as subject to tax 
 
 Laws coextensive with jurisdiction of United States 
 
 Leakage, allowance for (Act Dec. 20, 1879) 
 
 (Act May 28, 1880) 
 
 (Act Feb. 24, 1919) 
 
 Domestic alcohol withdrawn for denaturation (Act Mar. 
 
 2,1907) 
 
 Spirits removed for denaturation. . .(Act Feb. 24, 1919) 
 Spirits withdrawn from warehouse, allowance for (Act 
 
 Aug. 27, 1894) 
 
 (Act Mar. 3,1899) 
 (Act Jan. 13, 1903). 
 
 Lien of tax 
 
 (Act Jan. 8,1874). 
 
 Liqueurs (Act Feb. 24, 1919) 
 
 Locks, breaking. 
 
 Kequii-ing aflSxing to fermenters, etc. (Act Feb. 24, 1919) 
 
 Losses, allowance'for (Act Aug. 27, 1894) 
 
 (Act Mar. 8,1899) 
 
 (Act Jan. 13,1903). 
 
 During transportation, allowance for. (Act Dec 20, 1879) 
 
 Spirits bottled in bond (ActMar. 3, 1897) 
 
 In warehouse 
 
 Unavoidable cause, allowance for 
 
 (Act Feb. 24, 1919) 
 Mail, shipment of ethyl alcohol for acientifLc, etc., pm-poses 
 
 (Act Oct. 3,1917) 
 
 Use of, by ordained ministers for ordering sacramental 
 
 wines ,.'. (Act Oct. 3, 1917) 
 
 Mash, wort, or wash, premises on which may be made 
 
 Metera, requiiing installation (Act Feb. 24, 1919) 
 
 Munitions, exemption of distillers of ethyl alcohol for use 
 
 in production of (Act Feb. 24, 1919) 
 
 Notice, collector of port of arrival of spirits for exportation 
 
 (Act June 9, 1874) 
 
 Intention to caiTy on business of distiller or rectifier, . . 
 
 Manufacturers of stillB 
 
 Bectifiers, intention to rectify (Act July 16, 1892). 
 
 Suspension of work in distillery 
 
 Obstructing officers entering distillery 
 
 Ownership of land on which distillery is situated, require- 
 ment 
 
 Partition of warehouses , .(Act Jan. 8, 1874). 
 
 Pavment of tax, spirits removed to general bonded ware- 
 house (Act Aug. 27, 1894) 
 
 Time 
 
 (Act Aug. 27, 1894) 
 
 Digitized by M;<A2S«fi) 24, 1919) 
 
 Section. 
 3249 
 321 
 
 ' 17 
 
 600(6) 
 
 600(c) 
 
 15 
 
 1 
 
 601 
 
 11 
 
 d301 
 
 2 
 
 2 
 
 3223 
 
 3168 
 
 238-240 
 
 3251 
 
 3334 
 
 3448 
 
 1,2 
 
 15 
 
 600 
 
 3 
 603 
 
 50 
 1,2 
 
 325i 
 
 605 
 
 3268 
 
 621 
 
 50 
 
 1,2 
 
 i,'2 
 
 4 
 
 3293 
 
 3221-3223 
 
 600 
 
 1110 
 
 1110 
 
 3282 
 
 607, 621 
 
 602 
 
 1 
 
 3259 
 3265 
 
 3316 
 
 3276 
 
 3262 
 
 54 
 
 3293 
 
 48 
 
 600 
 
 Page. 
 190 
 ' 521 
 270 
 
 195 
 195 
 200 
 204 
 206 
 289 
 261 
 293 
 
 285 
 144 
 98 
 681 
 192 
 288 
 590 
 285 
 610 
 194 
 
 300 
 304 
 
 244 
 245, 246 
 247 
 192 
 223 
 196 
 221 
 191 
 244 
 245, 246 
 247 
 285 
 294 
 239 
 142-144 
 193 
 
 279 
 
 279 
 231 
 191 
 
 212 
 
 283 
 210 
 219 
 272 
 266 
 225 
 
 215 
 223 
 
 248 
 239 
 193 
 193 
 
940 INDEX. 
 
 DISTILLED SPIRITS— Continued. Section. Page. 
 
 Penalties, adding substances to create fictitious proof 
 
 Altering or changing brands or marks 
 
 Approval of bond of distiller not complying with law. 
 
 Carrying on business after notice of suspension 
 
 Without giving bond, etc 
 
 Dealing in or using empty casks with imported stamps, 
 
 etc., thereon (Act Mar. 1, 1879) 
 
 Defrauding or attempting to defraud United States of 
 
 tax 
 
 Distilling on certain prfemises 
 
 Evasion of tax 
 
 Failure or refusal of distillers to give bond 
 
 Failure to efface brands and stamps from empty casks. . 
 Stamps on imported j)ackages... (Act Mar.. 1, 1879) 
 Failure to furnish facilities for examination of dis- 
 tilleries 
 
 Failure to give notice of intention to carry on business 
 
 of distiller or rectifier 
 
 Failure to keep distillery accessible 
 
 Failure to place and keep signs 
 
 False entries, etc . , in books of distillers 
 
 False signs, etc . , using 
 
 False weights or measures, using 
 
 Fraudulent claims for drawback 
 
 Fraudulent inspection, gau^ng, etc 
 
 GFauger employing distiller, etc., to use brands or per- 
 form his duties 
 
 Imitation stamps, using (Act Feb . 8, 1875) 
 
 Improper withdrawal of domestic alcohol for denatu- 
 
 ration (Act June 7, 1906) 
 
 Obstructing officers entering or examining distillery. . . 
 Officer using, issuing, or permitting use of stamps con- 
 trary to law 
 
 Omitting things required and doing things forbidden. . 
 
 Operation of distillery on Sundays 
 
 (Act Feb. 24, 1919) 
 
 Painting pipes otherwise than as directed 
 
 Possession or custody of unregistered_ still, etc 
 
 Purchase of spirits in greater quantities than 20 gallons. 
 Purchase or sale of spirit casks having inspection marks . 
 Rectified spirits law violations. . . . . (Act Feb. 24, 1919) 
 
 Rectifiers, failure to make transcript of books 
 
 Intending to defraud 
 
 Refusal of rectifier or wholesale dealer to provide books . 
 Refusal or neglect to comply with law as to drawing off 
 
 water, cleansing worm tubs, etc 
 
 Relanding of spirits shipped for exportation 
 
 Removal of spirits before sunrise and after sunset. . 
 
 Contrary to law 
 
 (Act Mar. 3, 1891). 
 
 Setting up still without permit 
 
 Storekeeper unlawfully removing spirits, etc 
 
 Tampering with locks, etc., on stills, fermenting tubs, 
 
 etc 
 
 Transportation in violation of law 
 
 Using material or removing spirits in absence of store- 
 keeper " 
 
 Unregistered materials 
 
 Perfumes containing distilled spirits (ActFeb. 24, 1919^ 
 
 Pipes, requiring installation (Act Feb. 24, 1919) 
 
 Plan of distillery 
 
 Porto Rico, bay rum from .(Act Feb. 4, 1909) 
 
 Products of distillation containing spirits 
 
 Prohibitory zonesabout coal mines, etc.. (ActNov. 21, 1918) 
 
 Purchase, casks having inspection marks '. 
 
 Spirits in qaa,ntitiBi§t^i8Vlibf'W(3^^9ft® 
 
 3252 
 
 207 
 
 3326 
 
 278 
 
 3261 
 
 215 
 
 3310 
 
 266 
 
 3281 
 
 227 
 
 [ 13 
 
 290 
 
 3257 
 
 209 
 
 3266 
 
 220 
 
 3256 
 
 208 
 
 3260 
 
 211 
 
 3324 
 
 277 
 
 12 
 
 290 
 
 3277 
 
 226 
 
 3259 
 
 210 
 
 3275 
 
 224 
 
 3279 
 
 226 
 
 3305 
 
 261 
 
 3279 
 
 226 
 
 3306 
 
 262 
 
 3330 
 
 281 
 
 3292 
 
 239 
 
 3290 
 
 239 
 
 17 
 
 270 
 
 2 
 
 299 
 
 3276 
 
 225 
 
 3316 
 
 670 
 
 3456 
 
 597 
 
 3283 
 
 233 
 
 602 
 
 233 
 
 3269 
 
 221 
 
 3258 
 
 209 
 
 3319 
 
 274 
 
 3325 
 
 278 
 
 605 
 
 196 
 
 3318 
 
 272 
 
 3317 
 
 271 
 
 3318 
 
 272 
 
 3286 
 
 234 
 
 3330 
 
 281 
 
 3327 
 
 279 
 
 3296 
 
 256 
 
 
 206 
 
 3265 
 
 219 
 
 3300 
 
 259 
 
 3311 
 
 267 
 
 3324 
 
 277 
 
 3284 
 
 233 
 
 3306 
 
 262 
 
 1 600 
 
 195 
 
 ) 607 
 
 191 
 
 3263 
 
 217 
 
 ) 
 
 197 
 
 3254 
 
 207 
 
 ) 1 
 
 205 
 
 3325 
 
 278 
 
 3319 
 
 274 
 
INDEX. 941 
 
 DISTILIiED SPIBITS— Continued. Section. rage! 
 
 Rate of taxes 3251 192 
 
 (Act Aug. 27, 1894) 48, 60 193, 266 
 (Act Feb. 24, 1919) 600 193 
 
 Receiving-cisterns in distilleries 3267 220 
 
 Rectified spirits, tax on (Act Feb. 24, 1919)- 605 196 
 
 Rectifiers, books to be kept by 3318 272 
 
 Notice of intention to carry on business of 3259 210 
 
 Intentionto rectify (Act July 16, 1892) 272 
 
 Purchase of spirits in greater quantities than 20 gallons. 3319 274 
 
 Returns 3317 271 
 
 Reduction, capacity of distillery 3311 267 
 
 Proof.. (Act Feb. 24, 1919) 605 196 
 
 Refund of tax, alcohol withdrawn for scientific purposes 
 
 (Act June 4, 1912). 258 
 
 Regauging of spirits withdrawn from warehouse (Act Aug. 
 
 27,1894) 50 244 
 
 Registrjr of stills, etc 3258 209 
 
 Regulations, uniformity required (Act Feb. 24, 1919) 605 196 
 
 Reimbursement of owner where stills destroyed 3332 287 
 
 Reinspection of spirits bottled in bond for export (Act 
 
 Mar. 3, 1897) 5 294 
 
 Relanding spirits shipped for exportation 3330 281 
 
 Release of distillery before judgment, in what cases 3331 286 
 
 Removal of spirits, absence of storekeeper 3284 233 
 
 Before sunrise and after sunset 3327 279 
 
 Contrary to law 3296 256 
 
 (Art Mar. 3, 1891) 206 
 
 Distillery warehouse to general bonded warehouse 
 
 (Act Aug. 27, 1894) 
 
 Storekeeper unlawfully allowing 
 
 Under other than trade name 
 
 Reports, storekeepers '. 
 
 Restamping tax -paid spirits 
 
 Resurvey of distilleries. .. .' 
 
 Returns, distillers, monthly examination 
 
 (Act Feb. 24, 1919) 
 
 Distillers, number of barrels distilled 
 
 Production : 
 
 Gangers 
 
 Rectifiers 
 
 Storekeepers 
 
 Wholesale liquor dealers '. . . . .'." " 
 
 Revenue officers, power to enter and examine distilleries. . 
 Rules governing rectifiers of spirits. .. . .(Art Feb. 24, 1919) 
 Rum, denatured, exception from operation of national 
 
 prohibition act (Act Oct. 28, 1919, Title II) 
 
 Withdrawal for denaturation '. (Act Mar. 2, 1907) 
 
 Saccharometers, prescribing use . . . . : 
 
 Sales, pending war. . . . _. _ (Act Nov. 21, 1918) 
 
 Spirit casks having inspection marks 
 
 Scientific purposes, alcohol withdrawn for 
 
 (Act May 3, 1878) 
 (Act June 4, 1912) 
 
 Seals, cistern room, etc., breaking 
 
 Requiring affixing to fermenters, etc. (ActFeb. 24, 1919) 
 
 Seizure of stills, etc., burden of proof on claimant 
 
 Officer's liability where wrongful 
 
 Shipments into States, etc., in violation of law thereof (Act 
 
 Mar. 1, 1913) 
 
 (Act Mar. 3, 1917) 
 
 Signs of distillers or rectifiers 
 
 Special bonded warehouses for fruit brandy (Act Mar. 3, 
 
 1877) 
 
 (Act Oct. 18, 1888) 
 Special tax, rectifiers/I%/f/zefflfr^^^WJer*Sgiff@fe without 
 paymentof (ActFeb. 8,1875) 16 160,228 
 
 52 
 
 248 
 
 3300 
 
 259 
 
 3449 
 
 591 
 
 3301 
 
 259 
 
 3315 
 
 270 
 
 3264 
 
 217 
 
 3309 
 
 263 
 
 602 
 
 236 
 
 3308 
 
 263 
 
 3307 
 
 262 
 
 3291 
 
 239 
 
 3317 
 
 271 
 
 3301 
 
 259 
 
 3323 
 
 276 
 
 3276 
 
 225 
 
 605 
 
 196 
 
 4 
 
 351 
 
 1 
 
 300 
 
 3249 
 
 190 
 
 1 
 
 204 
 
 3325 
 
 278 
 
 3297 
 
 257 
 
 
 257 
 
 
 258 
 
 3268 
 
 221 
 
 621 
 
 191 
 
 3333 
 
 288 
 
 3332 
 
 287 
 
 
 296 
 
 5 
 
 296 
 
 3279 
 
 226 
 
 1-11 
 
 251-254 
 
 
 254 
 
942 INDEX. 
 
 DISTILLED SPIRITS— Continued. Section. Pago. 
 
 Spirit packages, tanks, pipe lines, etc.. (Act Feb. 24, 1919) 602 236 
 
 Stamps, accountability for books 3314 269 
 
 Affixing before removal to general bonded warehouse 
 
 (Act Aug. 27, 1894) 53, 55 248 
 
 Allowance fori where spoiled (Act June 30, 1902) . 1 552 
 
 Authority of Commissioner to discontinue (Act Feb. 24, 
 
 1919) 606 269 
 
 Bottled-in-bond spirits (Act Mar. 3, 1897) 1 292 
 
 Counterfeiting, forging, etc (Act Mar. 3, 1897) J 7 295 
 
 Effacing from empty casks 3324 277 
 
 Imported spirits (Act Mar. 1, 1879) 12 290 
 
 Exports 3314, 3330 269, 281 
 
 Forfeiture of vmstamped packages ,3289 238 
 
 Form ~: 3313 268 
 
 Fruit brandy before removal to special bonded ware- 
 house (Act Mar. 3, 1877) 3 251 
 
 Imitation stamps (Act Feb. 8, 1875) 17 270 
 
 Imported spirits, wines, etc.-. (Act Mar. 1, 1879) 11 289 
 
 Officer using, issuing, or permitting use of stamps con- 
 trary to law 3316 270 
 
 Payment of tax (Act Aug. 27, 1894) 48 193 
 
 Preparation and issuance 3312 268 
 
 Bectified spirits 3320, 3322 275, 276 
 
 (Act Feb. 24, 1919) 606 269 
 
 Restamping tax-paid spirits 3315 270 
 
 Spirits removed from warehouse ; . 3295 255 
 
 Removed to warehouse 3287 234 
 
 States, advertisements in (Act Mar. 3, 1917) 5 296 
 
 Shipment into, in violation of law thereof (Act Mar. 1, 
 
 1913) 296 
 
 (Act Mar. 3, 1917) 5 296 
 
 Stills, destruction in certain cases 3332 287 
 
 Notice by manufacturers of 3265 219 
 
 Registry of 3258 209 
 
 Storage, cisterns at small distilleries (Act Oct. 3,1913) 1V(N) 302 
 
 Tax due and payable, when (Act Feb. 24, 1919) 600 193 
 
 Storekeepers, accounts (Act Apr. 17 , 1900) 1 87 
 
 Assignment to warehouses 3154 87 
 
 Bonds, approval by Commissioner 3153 84 
 
 Charge of distilleries and accounts of materials used 3302 260 
 
 Warehouse 3271, 3273 222, 224 
 
 Compensation 3153 84 
 
 Unlawful removal of spirits or allowing same to be 
 
 removed 3300 259 
 
 Using material or removing spirits in absence of 3284 233 
 
 Warehouse books, returns, and reports 3301 259 
 
 Storekeeper-gangers, accounts (Act Apr. 17, 1900) 1 87 
 
 Assignment to distilleries, etc (Act Feb. 24, 1919) 621 191 
 
 Fruit distilleries and wineries.. (Act Sept. 8,1916) 402 90 
 
 Compensation (Act Feb . 24, 1919) 621 191 
 
 Sunday, operation of distillery on 3283 233 
 
 (Act Feb. 24, 1919) 602 233 
 
 Surveys of distilleries 3264 217 
 
 Suspension of work in distillery 3310 266 
 
 Tampering with locks, etc., attached to furnace, still, etc.. 3311 267 
 
 Tanks, requiring installation (Act Feb . 24, 1919) 607 191 
 
 Tax-paid spirits, storage on distillery premises = 3288 237 
 
 Time, emptying fermenting tubs . . ' 3285 234 
 
 (Act Feb. 24, 1919) 602 234 
 
 Oparation of distillery 3283 233 
 
 (Act Feb. 24, 1919) 602 233 
 
 Tax attaches, when 3248 190 
 
 Trade-mark on bottles (Act Mar. 3, 1897) 1 191 
 
 Transcript of entry in books kept by rectifiers, etc 3318 272 
 
 Digitized by Microsoft® 
 
INDEX. 943 
 
 BISTILLED SPIRITS— Continued. Section. Page. 
 Transfer, distilled spirits to tank cars for export (Act Feb. 
 
 24,1919) 624 286 
 
 Inspectors, gangers, etc 3163 92 
 
 (Act Aug. 15, 1876) 1 93 
 
 Transportation and warehousing bonds .(Act Feb. 24, 1919) 600(5) 194 
 Transportation bond, taking on withdrawal of spirits for 
 
 exportation (Act June 9, 1874) 1 283 
 
 Traveling expenses of gangers and storekeeper-gaugers (Act 
 
 Feb. 24, 1919) 621 191 
 
 Tubs 3269 221 
 
 Unavoidable accident, loss caused by 3221-3223 142-144 
 
 (Act Mar. 1, 1879) 6 265 
 
 Suspension of business caused by 3310 266 
 
 Varnishing stamps 3322 276 
 
 Vinegar, percentage of alcohol 3282 231 
 
 Premises on which may be made 3282 231 
 
 (Act June 14, 1879^ 232 
 
 Warehouse, change of ownership (Act Jan. 8, 1874) 223 
 
 Custody and management 3274 224 
 
 Discontinuance where unsafe 3272 224 
 
 Entry for withdrawal from 3294 243 
 
 Entry of spirits removed to 3293 239 
 
 Excessive loss of spirits in 3293 239 
 
 Exportation of spirits withdrawn from 3330 281 
 
 Gauging, stamping, and branding spirits removed from. 3295 255 
 
 Receipts, purchase and sale. (Act Oct. 28, 1919, Title II) 3 351 
 
 Removal of spirits to 3287 234 
 
 Storage of spirits before payment of tax 3271 222 
 
 Storekeepers' books, returns, and reports 3301 259 
 
 Tax on spirits removed without deposit in ^ 3253 207 
 
 Warehousing bonds (Act Feb. 24, 1919) 600 194 
 
 Weighing instruments, prescribing use 3249 190 
 
 Weights and measures, false 3306 262 
 
 Wholesale dealers, books to be kept by 3318 272 
 
 Marking, branding, and stamping packages 3323 276 
 
 Withdrawal, domestic alcohol for denaturation (Act June 7, 
 
 1906) 1 298 
 
 (Act Mar. 2, 1907) 1-5 300, 301 
 
 For exportation, transportation bond (Act June 9, 1874) 1 283 
 Free of tax of spirits used in manufacture of sugar from 
 
 sorghum (Act Mar. 3, 1891) 206 
 
 Manufacturer of perfumery, etc (Act Mar. 1, 1879) 20 610 
 
 Receiving cisterns (Act Feb . 24, 1919) 602 236 
 
 Warehouse, entry for 3294 243 
 
 Worms, payment of tax on, by stamps 3238 156 
 
 Special tax on manufacturers' 3244(2) 163 
 
 (Act May 28, 1880) 18 163 
 
 (Act Oct 3, 1913) IV(N) 163 
 
 Womtanks 3269 221 
 
 distbautt— 
 
 Assessment of tax on distrained property 3191 121 
 
 r, ,1 .- ( + T, / 3185 117 
 
 Collection of taxes by 13187-3195 119-122 
 
 Collectors, failure to account, etc 3217 135 
 
 Corporate stock 3194 122 
 
 f 3191 1 
 
 Disposition of proceeds of sale - \3193-3195 f ^^^' ^^^ 
 
 Distilled spirits, sale 3334, 3458 288, 598 
 
 Exemption of property from 3187 119 
 
 Fees. - 3206 127 
 
 Indivisible property, sale of whole 3195 122 
 
 Mode of levying 3188 120 
 
 Notice 3190 120 
 
 Restoration of goods onJaymentof tax.. 3193 121 
 
 Sale Jjjgitizedby. Microsoft®. 3190-3195 120-122 
 
 Tobacco, etc., stamps, etc., for 3458 598 
 
944 INDEX. 
 
 DISTRAINT— Continued. 
 
 Successive seizures of different property 
 
 Warrant, delinquent collectors, etc 
 
 Impairment of rights of United States 
 
 DISTRICTS— 
 
 Collection districts. {See Collbction districts.) 
 DISTRICT ATTORNEYS— 
 
 Accepting gifts, etc., for settlement of violation of laws, 
 
 penalty 
 
 Compensation, extra (Act Mar. 20, 1874) 
 
 . Continuance of suitor criminal proceeding, motion for 
 
 Department of Justice officers or special attorneys acting as 
 
 (Act June 30, 1906) 
 
 , Duties as to prosecution, etc 771, 838 
 
 Fees, collection, etc (Act May 28, 1896) 
 
 Indorsement on deed to real estate sold for taxes 
 
 National prohibition act, duty to prosecute offenders against 
 
 (Act Oct. 28, 1919, Title II) 
 
 Report of violations of, by Commissioner, etc. (Act 
 
 Oct. 28, 1919j Title II) 
 
 Regulations governing, duty of Commissioner 
 
 Reportsby, compromise of claims and cases after judgment. . 
 
 To Commissioner of Internal Revenue 774, 838 
 
 Reports to, by collectors as to violation of law 
 
 War prohibition act, enjoining violators of (Act Oct. 28 
 
 Section. 
 
 F^e. ■ 
 
 3205 
 
 127 
 
 3625 
 
 666 
 
 3638 
 
 667 
 
 1919, Title I). 
 ■ of 
 
 Prosecution of offenders against (Act Oct. 28, 1919, 
 Title I) 
 
 Warrants for arrest, approval (Act May 28, 1896) 
 
 DISTRICT COURTS— 
 
 Income taxes, judges f Act Feb. 24, 1919^ 
 
 Jurisdiction (Act Mar. 3, 1911) 
 
 Compelling attendance of witnesses, etc. (Act Feb. 24, 
 
 1919) 
 
 Issuance of writs, etc (Act Feb. 24, 1919) 
 
 Original proceedings (Act Mar. 3, 1911) 
 
 Suits, bonds of deputy collectors... (Act Feb. 8, 1875) 
 
 (Act Mar. 1, 1879) 
 
 Collectors, for penalties, etc 
 
 Injuries suffered by officer 
 
 DISTRICT OF COLUMBIA— 
 
 Alcohol, withdrawal (Act Oct. 28, 1919, Title III^ 
 
 Bonds, exemption from stamp tax (Act Feb. 24, 1919) 
 
 Clerks or employees, detail to duty in. . .(Act Aug. 5, 1882) 
 
 (Act June 22, 1906) 
 
 Detail to duty outside of (Act July 3, 1918) 
 
 Holidays 
 
 Income taxeSj compensation of officers.. (Act Feb. 24, 1919) 
 Sale of intoxicating liquor in, prima facie evidence (Act 
 
 Mar. 3, 1917) 
 
 Transportation tax, exemption (Act Feb. 24, 1919) 
 
 DITCH COMPANIES— 
 
 Income taxes, exemption (Act Feb . 24, 1919) 231 497 
 
 DIVIDENDS— 
 
 Income taxes. ((See Income taxes.) 
 DIVULGING INFORMATION— 
 
 Inspection of returns (Act Feb . 24, 1919^ 257 510 
 
 Munition manufacturer's returns. . .(Act Sept. 8, 1916) 309 830 
 
 _ Opium order forms, statements, etc. (Act Dec. 17, 1914) 5, 6 422, 423 
 
 Opium^ statementsorreturnsrelatingto.(ActDec. 17, 1914) 5 422 
 
 Prohibition against, where acquired in discharge of official 
 
 duties 3167 96 
 
 (Act Aug. 5, 1909) 38 727 
 
 Digitized by MfetefeBff®!^, 1910) 728 
 
 3170 
 
 101 
 
 3 
 
 700 
 
 3231 
 
 151 
 
 
 658 
 
 71, 838 
 
 658, 659 
 
 6 
 
 661 
 
 3197 
 
 122 
 
 2 
 
 350 
 
 2 
 
 350 
 
 3215 
 
 134 
 
 3469 
 
 656 
 
 74, 838 
 
 659 
 
 3164 
 
 94 
 
 4 
 
 348 
 
 2 
 
 347 
 
 19 
 
 659 
 
 213(a) 
 
 481 
 
 24 
 
 635 
 
 1318 
 
 110, 631 
 
 1318 
 
 631 
 
 51 
 
 639 
 
 12 
 
 76 
 
 2 
 
 77 
 
 3213 
 
 132 
 
 3171 
 
 101 
 
 11 
 
 368 
 
 1101 
 
 554 
 
 4,5 
 
 695,696 
 
 6 
 
 696 
 
 5 
 
 697 
 
 993 
 
 699 
 
 213 
 
 481 
 
 12 
 
 185 
 
 500(/i) 
 
 534 
 
INDEX, 
 
 945 
 
 .(Act Feb. 24, 1919) 
 .(Act Feb. 24, 1919) 
 
 DOWER— 
 
 Estate tax 
 
 DRAFTS— 
 
 Stamp taxes, rate 
 
 DRAWBACK— 
 
 Alcohol used in medicinal and toilet preparations (Act Oct. 
 
 Distilled spirits 
 
 Fraudulent claim 333O 3443 
 
 Stills manufactured for export (Act Mar. .1, 1879) 
 
 Superintendent of, administering oaths 
 
 Appointment 
 
 Compensation 
 
 Tobacco, snuff and cigars 
 
 DRUGS AND DRtTGGISTS. (See Medicinal prepara- 
 tions; Opium.) 
 
 Liquor, sale of (Act Oct. 28, 1919, Title II) 
 
 National prohibition act, transportation of liquor under (Act 
 
 Oct. 28, 1919, Title II) 
 
 DUES— 
 
 Act February 34, 1919— 
 
 Athletic clubs, rate of tax 
 
 Collection of tax 
 
 Credits, overpayments or overcoUections 
 
 Exemptions from tax 
 
 Fraternal organizations, exemption from tax 
 
 Initiation fees, tax on 
 
 Life memberships, rate of tax 
 
 Payment of tax, persons liable 
 
 Time and manner 
 
 Penalties, failure to pay, collect, etc., tax 
 
 Rate of tax 
 
 Returns 
 
 Attestation 
 
 Social clubs, rate of tax 
 
 Sporting clubs, rate of tax 
 
 Act October 3, 1917— 
 
 Assessment 
 
 Athletic clubs, rate of tax 
 
 Beneficiary societies, exemption 
 
 Collection 
 
 Exemption 
 
 Fraternal beneficiary societies, exemption. 
 
 Lodges, exemption 
 
 Payment 
 
 Fractions of cent 
 
 Penalty, failure to make return 
 
 False or fraudulent return 
 
 Rate of tax 
 
 Records of taxpayers 
 
 Regulations 
 
 Returns 
 
 Penalty for failure to make, etc 
 
 Social clubs, rate of tax 
 
 Sporting clubs, rate of tax 
 
 DWELLING HOUSE— 
 
 Distillery or warehouse, use as 
 
 Intoxicating liquor kept in, report of (Act Oct. 28, 1919, 
 
 Title II)...- 
 
 Search of, for intoxicating liquor (Act Oct. 28, 1919, Title II) 
 
 Section. 
 
 Page. 
 
 402 
 
 526 
 
 
 55^ 
 
 IV(0) 
 
 611 
 
 3329 
 
 279 
 
 3330, 3443 
 
 282, 588 
 
 10 
 
 164 
 
 3162 
 
 92 
 
 3161 
 
 91 
 
 3161 
 
 91 
 
 3386 
 
 393 
 
 6-8, 11 
 
 353-356 
 
 37 
 
 364 
 
 801 
 
 541 
 
 802 
 
 541 
 
 1310 
 
 629 
 
 801 
 
 541 
 
 801 
 
 541 
 
 801 
 
 541 
 
 801 
 
 541 
 
 801 
 
 541 
 
 802 
 
 541 
 
 1308 
 
 628 
 
 801 
 
 541 
 
 802 
 
 541 
 
 1309 
 
 629 
 
 801 
 
 541 
 
 801 
 
 541 
 
 1001 
 
 887 
 
 701 
 
 877 
 
 701 
 
 877 
 
 f 702,\ 
 (1001, 1003/ 
 
 878, 887 
 
 701 
 
 877 
 
 701 
 
 877 
 
 701 
 
 877 
 
 1002 
 
 887 
 
 1008 
 
 889 
 
 1004 
 
 887 
 
 1004 
 
 887 
 
 701 
 
 877 
 
 1001 
 
 887 
 
 1005 
 
 888 
 
 f 702,1 
 [1001, 1002/ 
 
 878, 887 
 
 1004 
 
 887 
 
 701 
 
 877 
 
 701 
 
 877 
 
 3266, 3271 
 
 220, 222 
 
 33,34 
 
 363 
 
 25 
 
 360 
 
 140184°— 20 60 
 
 Digitized by Microsoft® 
 
946 INDEX. 
 
 E. 
 
 EDTJCATrONAL ORGANIZATIONS— Section. 
 
 Admissions tax, exemption (Act Feb. 24, 1919) 800(6) 640 
 
 Alcohol withdrawn 3297 257 
 
 (Act May 3, 1878) 257 
 
 (Act Oct. 28, 1919, Title III) 11 368 
 
 Estate ta,x, deduction of gifts, etc (Act Feb . 24, 1919) 403 527 
 
 Excise taxes, sales of sculpture, paintings, etc. (Act Feb. 24, 
 
 1919) 902 545 
 
 Income taxes, deduction of gifts to (Act Feb . 24, 1919) 214, 219 486, 490 
 
 Exemption .• (Act Feb. 24, 1919) 231 496 
 
 Refund of tax on legacy or bequest for educational purpose 
 
 (Act June 27, 1902) 708 
 
 (Act July 27, 1912) 710 
 
 Stamp tax, proxies for voting (Act Feb . 24, 1919) 560 
 
 EMBEZZLEME NT- 
 Accounts, failure of officer to render (Act Mar. 4,1909) 90 669 
 
 Conversion of money, evidence (ActMax. 4,1909) 95 670 
 
 Custodians failing to safely keep public money (Act Mar. 4, 
 
 1909) 89 668 
 
 Deposit of public money, failure of officer to make (Act Mar. 
 
 4,1909) 91,99 669,671 
 
 Depositaries failing to safely keep public deposits (Act Mar. 
 
 4,1909) 88 668 
 
 Disb urging officer unlawfully depositing, etc . , public money 
 
 (Act Mar. 4, 1909) ■- 
 
 Evidence, conversion (Act Mar. 4, 1909) 
 
 Failure to pay draft as prima facie evidence {Act Mar. 4, 
 
 1909) 
 
 Transcript of books, etc ' 
 
 (Act Mar. 4, 1909) 
 
 Internal revenue officers (Act Mar. 4, 1909) 
 
 Public property (Act Mar. 4, 1909) 
 
 Receipt required for larger sum than actually pa,id (Act. 
 
 Mar. 4, 1909) 
 
 Receiving public money when unauthorized (Act Mar. 4, 
 
 1909) 
 
 Record evidence (Act Mar. 4, 1909) 
 
 Registry of court, receiving money belonging to {Act Mar. 4, 
 
 1909) 
 
 EMPLOYEES. {See Clbeks and employees.) 
 
 Fidelity insurance, stamp tax (Act Feb . 24, 1919). 
 
 Income taxes, deduction of compensation paid (Act Feb. 24, 
 
 1919) 214,234 
 
 EMPLOYMENT OF CHILD LABOR— 
 
 Tax on. {See Child laboe.) 
 ENBO^J/MEITT CONTRACTS— 
 
 Income taxes, amount received by insured as return of 
 
 premium (Act Feb. 24, 1919) 213 482 
 
 ENTIRETIES— 
 
 Estate tax, interest held as tenant in entirety (Act Feb. 24, 
 
 1919) 402 526 
 
 ENTRY— 
 
 False, officer making. 3169 98 
 
 Premises, person failing to make return 3176 108 
 
 Where taxable articles are kept 3177, 3180 110, 111 
 
 ENVELOPES- 
 
 Official (Act Mar. 3, 1877) 5 691 
 
 Digitized by Microsoft® 
 
 87 
 95 
 
 668 
 670 
 
 94 
 
 887 
 
 93 
 
 96, &7 
 
 47,48 
 
 669 
 672 
 669 
 670 
 679 
 
 86 
 
 667 
 
 96 
 
 93 
 
 670 
 669 
 
 100 
 
 671 
 
 
 557 
 
 214, 234 
 
 483,498 
 
INDEX. 
 
 947 
 
 EQTTITy— 
 
 Review of finding of Commissioner as to \-iolatians of na- 
 tional prohibition act (Act Oct. 28, 1919, Title II) 
 
 Subjecting real estate to payment of tax 
 
 War prcAibition act, enjoining violators of (Act Oct. 28, 
 
 1919, Title I) 
 
 ESTATES— 
 
 Executors, liability; to United States 
 
 Income taxes, credits (Act Feb. 24, 1919) 
 
 Deduction of net losses by beneiiciariea (Act Feb. 24, 
 1919) 
 
 Returns (Act Feb. 24, 1919) 
 
 Insolvency, priority of United States 
 
 ESTATE TAX— 
 
 Appropriation for collecting (Act July 3, 1918) 
 
 Liberty bonds, acceptance in payment. (Act Apr. 4, 1918) 
 
 First loan, exemption (Act Apr. 24, 1917) 
 
 Second loan, exemption f Act Sept. 24, 1917) 
 
 Third loan, exemption (Act Apr. 4, 1918^ 
 
 Victory loan, exemption (Act Mar. 3, 1919) 
 
 War Finance Coi-poration bonds, exemption (Act Apr. 5, 
 
 1918) 
 
 Act February 34, 1819 — 
 
 Administration expenses, deduction 
 
 Assessment of tax 
 
 Bequests to charitable, etc., uses, deduction 
 
 Bona fide purchasers, lien for unpaid tax on property sold to. 
 
 Charitable organizations, gifts, etc., to, deduction 
 
 Claims against estate, deduction 
 
 Collection of unpaid taxes 
 
 Collectors, returns by 
 
 Concealment of information, penalty 
 
 Cruelty to children or animals, deduction of gifts to corpora- 
 tion organized to prevent 
 
 Curtesy interests : 
 
 Death, gifts in contemplation of 
 
 Lien for unpaid tax on property transferred in contem- 
 plation' of 
 
 Definitions, collector 
 
 Executor 
 
 Dower interests 
 
 Educational purposes, gifts, etc., for, deduction 
 
 Entirety, interest held as tenant in 
 
 Estates liable 
 
 Estate-taxed property, deductions 
 
 Exemptions 
 
 Expenses, deduction 
 
 Extension of time for payment 
 
 Funeral expenses, deduction 
 
 Gifts, charitable, etc., uses, deduction 
 
 Contemplation of death 
 
 Gross estate, deductions from 
 
 Determination of value 
 
 Lien on, for unpaid tax 
 
 Income taxes, deduction 
 
 Insurance, proceeds of policy of, gross estate 
 
 Interest, delay in payment of tax 
 
 Joint interests 
 
 Lien for unpaid tax 
 
 Life insurance, proceeds of policy of, gross estate 
 
 Reimbursement of executor for tax paid on proceeds of 
 
 policy 
 
 Literary purposes, gifts, etc., for, deduction 
 
 Losses, deduction 
 
 Military forces, decedent dying while serving in 
 
 Mortgages, deduction 
 
 Digitized by Microsoft® 
 
 Section. 
 
 5,9 
 
 351, 355 
 
 3207 
 
 127 
 
 4 
 
 348 
 
 3467 
 
 686 
 
 219, 222 
 
 488, 493 
 
 204 
 
 477 
 
 219 
 
 490 
 
 3466 
 
 685 
 
 1 
 
 57 
 
 6 
 
 886 
 
 1 
 
 581 
 
 7 
 
 581 
 
 3 
 
 683 
 
 1 
 
 585 
 
 16 
 
 583 
 
 403 
 
 527 
 
 404, 405 
 
 529, 530 
 
 403 
 
 528 
 
 409 
 
 531 
 
 403 
 
 527 
 
 403 
 
 527 
 
 408 
 
 530 
 
 405 
 
 530 
 
 410 
 
 532 
 
 403 
 
 527 
 
 402 
 
 526 
 
 402 
 
 526 
 
 409 
 
 531 
 
 400 
 
 525 
 
 400 
 
 525 
 
 402 
 
 526 
 
 403 
 
 527 
 
 402 
 
 526 
 
 401 
 
 525 
 
 403 
 
 527 
 
 403 
 
 527 
 
 403 
 
 527 
 
 406 
 
 530 
 
 403 
 
 527 
 
 403 
 
 527 
 
 402 
 
 526 
 
 403 
 
 527 
 
 402 
 
 526 
 
 409 
 
 531 
 
 403 
 
 527 
 
 402 
 
 526 
 
 406, 407 
 
 530 
 
 402 
 
 526 
 
 409 
 
 531 
 
 402 
 
 526 
 
 408 
 
 530 
 
 403 
 
 527 
 
 403 
 
 527 
 
 401 
 
 525 
 
 403 
 
 527 
 
948 
 
 INDEX. 
 
 ESTATE TAX— Continued. 
 Act February 24, 1919— Continued. Section. 
 
 Naval forces decedent dying while serving in 401 
 
 Net estate, determination of value of 403 
 
 Nonresidents, deductions from gross estate 403 
 
 Notice, false, penalty 410 
 
 Qualification of executor, etc 404 
 
 Partial returns by executors 404 
 
 Payment, enforcement 408 
 
 Lien for unpaid tax 409 
 
 Partial 407 
 
 Time 406 
 
 To whom 407 
 
 Penalties, failure to make returns, etc 410 
 
 Power of appointment, property passing under 402 
 
 Proceeds of sale of property for taxes 408 
 
 Property deemed as within United States 403 
 
 Rates of tax 401 
 
 Receipts for payment 407 
 
 Refund, excess payment of tax 407 
 
 Previous collections 401 
 
 Tax paid on gifts, etc 403 
 
 Reimbursement from estate where tax paid by one other 
 
 than executor 408 
 
 Release of property from lien for unpaid tax 409 
 
 Religious purposes, gifts, etc., for, deduction 403 
 
 Returns, false or fraudulent 410 
 
 Necessity, contents, etc 404, 405 
 
 Nonresidents 403 
 
 Sale of property for taxes 408 
 
 Scientific purposes, gifts, etc., for, deduction 403 
 
 Support of dependents, deduction 403 
 
 Taxes, deduction 403 
 
 Time of payment 406 
 
 Transfers within two years of death 402 
 
 War service, decedent dying in 401 
 
 Act October 3, 1917— 
 
 Additional taxes 900, 901 
 
 Assessment 1001 
 
 Collection 1001,1003 
 
 Payment 1002 
 
 Fractions of cent 1008 
 
 Penalty, failure to make return 1004 
 
 False or fraudulent return 1004 
 
 Records of taxpayers 1001 
 
 Regulations 1005 
 
 Returns 1001, 1002 
 
 Penalty for failure to make, etc 1004 
 
 Act September 8, 1916 — 
 
 Administration expenses, deduction 203(a) 
 
 Application of earlier laws 211 
 
 Assessment 205 
 
 Bona fide purchasers, lien for tax as against 209 
 
 Claims against estate, deduction 203(a) 
 
 Contemplation of death, liability for tax in case of transfer in 209 
 
 Definitions, collector 200 
 
 Executor 200 
 
 Person 200 
 
 United States 200 
 
 Discount, payment of tax before due 204 
 
 Earlier laws, application of 211 
 
 Exemption of $50,000, deduction 203(a) 
 
 Forms 212 
 
 Funeral expenses, deduction 203(o) 
 
 Gross estate, determination of value 202 
 
 Interest, delinquency in payment of tax 204 
 
 Lien for unpaid tax 209 
 
 Losses during administg^^^g^yjlt^^^Q^Q^^ 203(a) 
 
 Page. 
 525 
 527 
 527 
 532 
 529 
 529 
 530 
 531 
 530 
 530 
 530 
 532 
 526 
 530 
 527 
 525 
 530 
 530 
 525 
 527 
 
 530 
 531 
 527 
 532 
 529, 530 
 527 
 530 
 528 
 527 
 527 
 530 
 526 
 525 
 
 885 
 887 
 887 
 887 
 889 
 887 
 887 
 887 
 888 
 887 
 887 
 
 823 
 826' 
 824 
 826 
 823 
 826 
 820 
 820 
 820 
 820 
 823 
 826" 
 823 
 826 
 823 
 821 
 823 
 826 
 823 
 
INDEX. 
 
 949 
 
 ESTATE TAX— Continued. 
 
 Act September 8, 1916— Continued. 
 
 Mortgages unpaid, deduction 
 
 Net estate, determination of value 
 
 Nonresidents, domestic corporation stock owned by dece- 
 dent 
 
 Net estate, determination of value 
 
 Notice, qualification of executor, etc 
 
 Payment, amount 
 
 Interest in case of delinquency 
 
 Receipts 
 
 Refund of excess 
 
 Subjection of property in case of delinquency 
 
 Time 
 
 To whom made 
 
 Penalties, failure to give information required 
 
 False statement or return 
 
 Rates- 
 
 Receipts 
 
 Regulations '. 
 
 Residents, net estate, determination of value 
 
 Returns, collector to make, when 
 
 Duty of executor to file, etc 
 
 Subjection of property, delinquency in payment of tax 
 
 Support of dependents, deduction 
 
 Transfers in contemplation of death, liability for tax 
 
 Trustee, liability where trust created in contemplation of 
 
 death 
 
 Value of gross estate, determination 
 
 Net estate, determination 
 
 ESTIMATES— 
 
 Expenses of assessing and collecting internal revenue, Com- 
 missioner's duties 
 
 Lump-sum appropriation (Act July 1, 1916) 
 
 Method of submitting information in connection with (Act 
 
 July 1, 1916) 
 
 Per diem allowances (Act Aug. 1, 1914) 
 
 Time to furnish to Secretary of the Treasury (Act Mar. 3, 
 
 1901) 
 
 ETHER— 
 
 Denatured alcohol, use in manufacture.. (Act Mar. 2, 1907) 
 EVIDENCE. (See Witnesses.) 
 
 Absence of stamps from packages as prima facie e^T-dence of 
 
 nonpayment of tax, cigars 
 
 Fermented liquor 
 
 Tobacco or snuff 
 
 Bill of sale at distraint sale as prima facie evidence of right 
 
 to sell 
 
 Certificate of purchase as prima facie evidence of right to sell 
 
 property for taxes 
 
 Certified copies of books, etc., admissibility 
 
 (Act June 22, 1874) 
 
 Collector authorized to take, when 
 
 Deeds to property sold for taxes as prima facie eAddence of 
 
 facts stated therein 
 
 Embezzlement of public money 
 
 (Act Mar. 4, 1909) 
 Income taxes paid to foreign countries, etc. (Act Feb. 24, 
 
 1919) 
 
 Intoxicating liquor, possession of, as prima facie evidence of 
 
 keeping for illegal sale (Act Oct. 28, 1919, Title II) 
 
 Juriscfiction of district court to compel production (Act Feb. 
 
 24 1919) 
 
 National prohibition act, j)roceedings for violation of (Act 
 Oct. 28, 1919, Title WgiUzed-by- MiGfQSOft®- 
 
 Section. 
 
 Page. 
 
 203(a) 
 203 
 
 823 
 822 
 
 202(c) 
 
 203(5) 
 
 205 
 
 822 
 823 
 824 
 
 207 
 
 825 
 
 207 
 
 825 
 
 207 
 
 825 
 
 207 
 
 825 
 
 208 
 
 825 
 
 204 
 
 823 
 
 207 
 
 825 
 
 210 
 
 826 
 
 210 
 
 826 
 
 201 
 301 
 
 821, 847 
 848 
 
 207 
 
 825 
 
 212 
 
 826 
 
 203(a) 
 206 
 
 822 
 824 
 
 205 
 
 824 
 
 208 
 
 825 
 
 203(a) 
 209 
 
 823 
 826 
 
 209 
 
 826 
 
 202 
 
 821 
 
 203 
 
 822 
 
 321, 3671 
 
 51,53 
 
 4 
 
 57 
 
 4 
 
 57 
 
 13 
 
 84 
 
 5 
 
 54 
 
 1 
 
 300 
 
 3398 
 
 408 
 
 3353 
 
 316 
 
 3373 
 
 385 
 
 3217 
 
 135 
 
 3194 
 
 122 
 
 882 
 
 644 
 
 5 
 
 644 
 
 3165 
 
 95 
 
 3199 
 
 125 
 
 887 
 
 672 
 
 93-95 
 
 669, 670 
 
 222 
 
 493 
 
 33 
 
 362 
 
 1318 
 
 110, 631 
 
 30 
 
 362 
 
950 
 
 INDEX, 
 
 EVIDENCE— Continued. 
 
 Opium, burden of proof as to exemption from tax (Act Dec. 
 17, 1914) 
 
 Payment of special tax as prima facie evidence of engaging 
 in keeping or selling liquor (Act Mar. 3, 1917) 
 
 Records of sale for taxes 
 
 Recovery of taxes collected on second assessments, burden 
 of proof 
 
 Redemption of land sold for taxes 
 
 Returns, taking testimony by Commissioner, etc., for pur- 
 pose of making (Act Feb. 24, 1919) 
 
 Special-tax stamp or receipt as prima facie evidence of sale 
 of intoxicating liquor (Act Feb. 14, 1917) 
 
 Stamps, wasbing, restoring, etc 
 
 State laws as rules of decision 
 
 Transcripts from books of Treasiiry as evidence 88&, 887 
 
 EXAMINATION— 
 
 Articles and objects subject to tax 3177, 3180 
 
 Books, etc., of person not making return. 
 
 -1 
 
 EXCESS PEOFITS TAXES— 
 
 (Act Feb. 24, 1919) 
 
 Liberty bonds, first loan, exemption (Act Apr. 24, 1917) 
 
 Second loan, exemption (Act Sept. 24, 1917) 
 
 (ActSept.24,1918) 
 
 Third loan, exemption (ActApr. 4, 1918) 
 
 Victory loan, exemption (Act Mar. 3, 1919) 
 
 War Finance Corporation bonds, exemption (Act. Apr. 5, 
 
 1918) 
 
 Act February 24, 1919— 
 Change of ownership of corporations 
 
 Computation of tax < 
 
 Congress, records furnished to 
 
 Consolidation of corporations 
 
 Corporations subject to tax 
 
 Credits, excess profits 
 
 Prewar period 
 
 Taxes paid 
 
 War profits 
 
 Deductions 
 
 Definitions, admissible assets 
 
 Borrowed capital 
 
 Dividends 
 
 Fiscal year 
 
 Inadmissible assets 
 
 Intangible property 
 
 Invested capital 
 
 Paid or accrued 
 
 Personal service corporation 
 
 Prewar period 
 
 Tangible property 
 
 Taxable year 
 
 Exemptions < 
 
 Fiscal year ending in 1918. 
 Ending in 1919 
 
 Foreign corporation, computation of tax. 
 
 Exemption 
 
 Gas wells, rate of tax in case of sale 
 
 Gold mining, exemption of income from. 
 
 Government contracts, profits from 
 
 Income taxes, credits 
 
 Deduction 
 
 Digitized by Microsoft® 
 
 Section. - 
 
 Bage.- 
 
 8 
 
 423 
 
 12 
 
 185 
 
 3203 
 
 126 
 
 3225 
 
 146 
 
 3204 
 
 126 
 
 1305 
 
 628 
 
 26 
 
 185 
 
 3429 
 
 553 
 
 721, 858 
 
 646, 643 
 
 88e, 887 
 
 671, 672 
 
 177, 3180 
 
 110, 111 
 
 173-3175, 
 
 104-107, 
 
 3179 
 
 111 
 
 1305 
 
 628 
 
 1 
 
 581 
 
 7 
 
 581 
 
 1 
 
 584 
 
 3 
 
 583 
 
 1,2 
 
 585, 586 
 
 16 
 
 583 
 
 330,331 
 
 522, 523 
 
 301 
 
 514 
 
 327, 328 
 
 520, 521 
 
 328(c) 
 
 521 
 
 330, 331 
 
 522, 523 
 
 301 
 
 514 
 
 312 
 
 517 
 
 310 
 
 516 
 
 335(a) 
 
 523 
 
 311 
 
 516 
 
 320, 330 
 
 518, 522 
 
 325(o) 
 
 518 
 
 325(a) 
 
 518 
 
 300 
 
 513 
 
 300 
 
 513 
 
 325(a) 
 
 518 
 
 325(a) 
 
 518 
 
 326 
 
 519 
 
 300 
 
 513 
 
 300 
 
 513 
 
 310 
 
 516 
 
 325(a) 
 
 518 
 
 300 
 
 513 
 
 304, 305 
 
 516 
 
 311,312 
 
 516, 517 
 
 335(a) 
 
 523 
 
 335(6) 
 
 524 
 
 327(6) 
 328(a) 
 
 520 
 
 521 
 
 312 
 
 517 
 
 337 
 
 524 
 
 304(c) 
 3ai(e) 
 
 516 
 
 514 
 
 302 
 
 515 
 
 218 
 
 489 
 
 214, 220 
 
 484, 491 
 
INDEX. 951 
 
 EXCESS PROFITS TAXES— Clontinucd. 
 
 Act Feb. 24, 1919— Continued. Section. Page. 
 
 In-\-ested capital, admissiblo assets 325(a") 518 
 
 Borrowed capital 325(0) 518 
 
 Definition 326 519 
 
 Inability to determine, computaion of tax 327(a) 520 
 
 Inadmissible assets 325(a) 518 
 
 Intansjible property 325(a) 518 
 
 Par vahie of etook or shares 325(5) 519 
 
 Tan2;ible property 325(a) 518 
 
 Limitation on amount of tax 302, 303 515 
 
 Mines, exemption of income from gold mining 304(c) 516 
 
 Rate of tax in case of sale 337 524 
 
 Net income, ascertainment 320 518 
 
 Oil wells, rate of tax in case of sale 337 524 
 
 Partnership, fiscal year ending in 1918 335(a) 523 
 
 Reorganized as corporation 330, 331 522, 523 
 
 Payment of tax 336 524 
 
 Receiving certificates of indebtedness and uncertified 
 
 checks 1314 132 
 
 Penalties 336 524 
 
 Personal service corporations 303 515 
 
 Fiscal year ending in 1918 335(a) 523 
 
 Railroads under Federal control 301(e"i 515 
 
 Rates of tax 30i 514 
 
 Records, cases in whicb tax determined 328(c) 521 
 
 Refund, excess of taxes paid 335(o., c) 523, 524 
 
 Reorganizations 330, 331 522, 523 
 
 Returns : 335, 336 523, 524 
 
 Special excise tax, payment by reorganized corporation 330 522 
 
 Transportation systems under Federal control 301(f) 515 
 
 Undisti'ibiited earnings where corporation reorganized 330 522 
 
 Act October 8, 1917— 
 
 Abatement, claim 205(t) 856 
 
 Amendment of former acts 214 861 
 
 Assessment 212, ]001 860, 887 
 
 Bond , abatement claim 205(6) 856 
 
 r, „ .- / 2a2 860 
 
 Collection jlOOl, 1003 887 
 
 Consolidations, invested capital 208 859 
 
 Deductions 206 857 
 
 Determination where average annual income can not be 
 
 satisiactorily determined 203(£Z) 855 
 
 Domestic corporations 203(a) 855 
 
 Partnerships 203(6) 855 
 
 Foreign corporations or partnerships 203(c) 855 
 
 Invested capital unascertainable 210 859 
 
 Prewar period, no net income during 205(a) 856 
 
 Not engaged in business during 204 855 
 
 Residents ....'". 203(6) 855 
 
 Definitions, business 200 854 
 
 Corporation 200 853 
 
 Domestic 200 853 
 
 Foreign 200 853 
 
 Invested capital 207 858 
 
 Netincome 200 854 
 
 Prewarperiod - 200 854 
 
 Taxableyear 200 853 
 
 Trade 200 854 
 
 Fnited States 200 853 
 
 District of Columbia officers and employees, exemption 201 854 
 
 Exemptions 201,202 854,855 
 
 Foreign corporations or partnerships, exemption 202 855 
 
 General laws applicable 212 860 
 
 Invested capital, business without 209 859 
 
 Consolidations 208 859 
 
 Colorations D/gjfjVeW-Jb^M/croSOff®- ^OT^^j) 858 
 
 Deduction when una*re to aet«rmine 210 859 
 
952 INDEX. 
 
 EXCESS PROFITS TAXES— Continued. 
 Act October 3, 19i 7— Continued. 
 
 Invested capital — Continued. Section. Page. 
 
 Definition 207 858^ 
 
 Individuals 207(6) 858 
 
 Nonresident aliens 207(6) 859 
 
 Partnerships 207(a) 858 
 
 Reorganizations 208 859 
 
 Life, health, and accident insurance policy, exemption of 
 
 income from 201(c) 855 
 
 Net income, ascertainment 206 857 
 
 Determination of percentage of invested capital 205(a) 856 
 
 Nonresident aliens, exemption 202 855 
 
 Invested capital 207(5) 859 
 
 Partnerships, invested capital 207(a) §58 
 
 Payment 1002 887 
 
 Advance 1009 889 
 
 Certificates of indebtedness 1010 889 
 
 Fractions of cent 1008 889 
 
 Installments 1009 889 
 
 Uncertified checks 1010 889 
 
 Penalty, failure to make return 1004 887 
 
 False or fraudulent return 1004 887 
 
 Rate 201 854 
 
 Record of taxpayers 1001 887 
 
 Refunds .- 212 860) 
 
 ^^S^^-^^ons { ^213 860, 
 
 Remission. 212 860 
 
 Reorganizations, invested capital 208 859 
 
 Repeal of former acts 214 861 
 
 Returns 1001, 1002 887: 
 
 Partnership 211 860i! 
 
 Penalty for failure to make, etc 1004 887' 
 
 State officers and employees, exemption 201 854 
 
 United States officers and employees, exemption 201 854 ' 
 
 Act March 3, 1917— 
 
 Actual capital invested defined 202 846 
 
 Agriculture, exemption of partnership income from 204 846 
 
 Assessment 206 847 
 
 Collection 206 847 
 
 Computation 201, 203 845, 846 
 
 Deductions, partnerships 205 847 
 
 Definitions, actual capital invested 202 846 
 
 Corporation 200 845 
 
 Invested capital 202 846 
 
 Taxable year 200 845 
 
 United States 200 845 
 
 Exemptions 201, 204 845, 846 
 
 Fiscal year, fixing 203 846 
 
 Foreign corporations and partnerships, taxability 201 845 
 
 General laws, applicability 206 847 
 
 Invested capital, definition 202 846 
 
 Statement in return 205 847 
 
 Life, health, and accident insurance policy, exemption of 
 
 income from 201 845 
 
 Personal services, exemption of partnership incomes from.. 204 846 
 Philippine Islands, taxability of corporations and partner- 
 ships of •. 201 845 
 
 Porto Rico, taxability of corporations and partnerships of. . 201 845 
 
 Rate 201 845 
 
 Refunds 206 847 
 
 Regulations 207 847 
 
 Remission 206 847 
 
 Returns, partnerships 205 847 
 
 Statement as to invested capital 205 847 
 
 Taxable year, definition... ,. , . . .,., „^. 200 845 
 
 Digitized by Microsoft® 
 
INDEX. 
 
 953 
 
 EXCHANGES- S,,tion. 
 Sale of cotton for future delivery. {See Cotton ruTURES.) 
 
 Stamp tax, sales of produce on (Act Feb. 24, 1919) 
 
 EXCHANGE OF PROPERTY— 
 
 Income taxes, basis for determining gain or loss (Act Feb. 
 
 24,1919) 202 
 
 EXCISE TAXES— 
 
 Employment of child labor. (See Child labor.) 
 Munition manufacturers. {See Munition manufacturer's 
 
 TAX.) 
 
 Playing cards. (See Playing cards.) 
 Sale of cotton for future delivery. {See Cotton futures.) 
 Special tax on corporations. {See Corporation special 
 excise tax.) 
 Act February 24, 1919— 
 
 Art works 902 
 
 Assessment 903 
 
 Jewelry, etc., tax 905 
 
 Automatic vending, etc. , machines 900(16) 
 
 Automobiles, accessories, etc 900(1-3) 
 
 Bacterines, exemption from tax 907 
 
 Binoculars, etc 905 
 
 Boats 900(20) 
 
 Cameras 900(7) 
 
 Candy 900(9) 
 
 Capital stock 1000 
 
 Penalty for failure to collect, etc., tax 1308 
 
 Chewing gum 900(6) 
 
 Cigar or cigarette holders and pipes 900(15) 
 
 Clocks 905 
 
 Collection, luxury tax 904(c) 
 
 Tax on perfumes, medicinal preparations, etc 907 
 
 Computation in case of sale, lease, or license at less than fair 
 
 market value 901 
 
 Where manufacturer, etc., customarily sells articles 
 
 both at wholesale and retail 900 
 
 Credits, overpayments or overcoUections 1310 
 
 Educational institutions, sales of sculpture, paintings, 
 
 etc., to 902 
 
 Electric fans 900(13) 
 
 Essences, extracts, etc 907 
 
 Export, sales or leases of articles for 1310 
 
 Firearms, etc 900(10) 
 
 Fur articles { ''°g^gj 
 
 Games, balls, etc., used in connection with 900(5) 
 
 Hunting and shooting garments, etc 900(18) 
 
 Interest, delinquency in payment of tax 903, 905 
 
 Jewelry 905 
 
 Knives 900(11, 12) 
 
 Liveries and livery boots and hats 900(17) 
 
 Luxuries 904 
 
 Medicinal preparations, etc 907 
 
 Monthly returns 903 
 
 Motion-picture films, computation of tax 901 
 
 Leasing or licensing for exhibition 906 
 
 Motor boats _. 900(20) 
 
 Musical instruments ' 900(4) 
 
 Notice 903 
 
 Jewelry tax 905 
 
 Opera glasses 905 
 
 Paintings 902 
 
 Patent medicines 907 
 
 / 903,905 
 
 Payment [ 9(J7(j) 
 
 Vendee or lesBetDigJtized byMlCTOSOft® 1312 
 
 Page. 
 558 
 
 475 
 
 545 
 546 
 548 
 544 
 543 
 549 
 547 
 544 
 544 
 544 
 178 
 628 
 544 
 544 
 547 
 547 
 549 
 
 545 
 
 544 
 629 
 
 545 
 544 
 549 
 630 
 544 
 544 
 547 
 543 
 544 
 
 546, 548 
 547 
 544 
 544 
 546 
 549 
 546 
 545 
 548 
 544 
 543 
 546 
 548 
 547 
 545 
 549 
 
 546, 548 
 549 
 630 
 
954 INDEX. 
 
 EXCISE TAXES— Continsed. 
 
 Act February 24, 1919 — Continued. Section. Page. 
 
 Pearls 905 547 
 
 Penalties, delinquency in payment 903, 905 546, 548 
 
 Failure to pay, collect, etc., tax 1308 628 
 
 Perfumes, toilet waters, etc 907 549 
 
 Persons liable for luxury tax 904(c) 547 
 
 Photographic films and plates 900(8) 544 
 
 Pianos, etc - 900(4) 543 
 
 Pills, tablets, powders, etc 907 549 
 
 Pleasure boats 900(20) 544 
 
 Precious metals, articles made of, etc 904(t) 547 
 
 Precious stones 905 547 
 
 Proprietary medicines 907 549 
 
 Public art museums, sales of sculpture, paintings, etc., to. . 902 545 
 
 Rates of tax | 90^^907} 543-548 
 
 903 546 
 
 Returns. 
 
 904(c) 547 
 
 1 905 547 
 
 1 907(6) 549 
 
 Attestation 1309 629 
 
 Riding habits 900(18) 544 
 
 Sales on credit, payment of tax 1310 629 
 
 Sculpture 902 545 
 
 Slot-device machines. 900(16) 544 
 
 Sporting goods 900(5) 543 
 
 Stamps, affixing to articles 907 549 
 
 Statuary 902 545 
 
 Surgical insti'uments , , 905 547 
 
 Thermos bottles, etc 900(14) 544 
 
 Time for payment 903 546 
 
 Toilet soaps and powders - - - 900(21) 544 
 
 Toilet waters, etc 907 549 
 
 Trade-mark, medicinal preparations sold under 907 549 
 
 Vaccines, exemption from tax 907 549 
 
 Watches - 905 547 
 
 Yachts 900(20) 544 
 
 Act October 3, 1917— 
 
 Articles on hand at passage of act 602 875 
 
 Assessment 1001 887 
 
 Automobiles, etc 600(a) 873 
 
 Boats 603 876 
 
 Cameras '. . . . 600(j) 875 
 
 Chewing gum 600(i) 875 
 
 Collection 1001,1003 887 
 
 Contract after act effective, person liable for tax 1007 888 
 
 Definition, dealer 1007 888 
 
 Jewelry 600(c) 873 
 
 Medicinal preparations 600(&) 874 
 
 Monthly returns 601 875 
 
 Motor vehicles 600(a) 873 
 
 Moving-picture films 600(c, d) 873 
 
 Musical instruments 600(6) 873 
 
 Payment 1002 887 
 
 Fractions of cent 1008 889 
 
 Penalty, failure to make return 1004 887 
 
 False or fraudulent return 1004 887 
 
 Records of taxpayers 1001 887 
 
 RegulatiLons 1005 888 
 
 -r, . f 601 875 
 
 Keturns |^qq]^^ ;^qq2 887 
 
 Penalty for failure to make, etc 1004 887 
 
 Sporting goods " 600(/) 873 
 
 Toilet articles, etc 600(jf) 874 
 
 Yachts 603 876 
 
 Digitized by Microsoft® 
 
INDEX. 
 
 955 
 
 EXECUTION-— SeeUon. 
 Oollectora or other officers, against, in cases of probable 
 
 cause 989 
 
 State laws governing 916 
 
 Running in every State 986 
 
 EXECTJTOIIS— 
 
 Definition (ActPeb. 24, 1919) 400 
 
 Estate tax, allowance or credit as to taxes paid (Act Feb. 
 
 24, 1919) 407 
 
 Notice of quaUflcation (Act Feb. 24, 1919) 404 
 
 Partial return (Act Feb. 24, 1919) 404 
 
 Payment (ActFeb. 24, 1919) 407 
 
 Refund of excess of tax paid (Act Feb. 24, 1919) 403 
 
 Reimbursement for tax paid on proceeds of life insur- 
 ance policy (Act Feb. 24, 1919) 408 
 
 Returns (ActFeb. 24, 1919) 404 
 
 Liability tor debts due United States 3467 
 
 Special tax liability 3244(5) 
 
 Carrying on business of decedent 3241 
 
 EXEMPTIONS— 
 
 Admissions tax (ActFeb. 24, 1919) 800(6) 
 
 Banks, insolvent (Act Mar. 1,1879) 22 
 
 Tax on circulation 3411 
 
 Certificates of indebtedness (Act Feb. 24, 1917) 11 
 
 (Act July 9, 1918) 3 
 
 (Act Mar. 3, 1919) 4 
 
 Distraint 31S7 
 
 Dues, tax on (ActFeb. 24, 1919) 801 
 
 Estate tax (ActFeb. 24, 1919) 403 
 
 Excess profits taxes (Act Feb. 24, 1919)| ^^^^ ^^fA 
 
 Income taxes, corporations (ActFeb. 24, 1919) 231 
 
 Personal exemptions (Act Feb. 24, 1919) 216 
 
 Insolvent banks (Act Mar. 1, 1879) 22 
 
 Insurance tax (Act Feb. 24, 1919) 503(d) 
 
 Liberty bonds. {See Liberty bonds.) 
 
 Special taxes, liquor dealers 3244(5) 
 
 State laws, punishment under, by reason of payment of 
 
 special tax 3243 
 
 Transportation tax (Act Feb. 24, 1919) 500(h) 
 
 War Finance Corporation bonds (Act Apr. 5, 1918) 16 
 
 (Act July 9, 1918) 3 
 
 (Act Mar. 3, 1919) 4 
 EXHAUSTION OF PROPERTY- 
 
 Income taxes, deduction (Act Feb. 24, 1919)| ^^^' ^^l 
 
 EXPENSES— 
 
 Advisory Tax Board (Act Feb. 24, 1919) 1301(rf) 
 
 Clerks or employees, traveling 850 
 
 (Act June 16, 1874) 
 
 Witnesses 850 
 
 Distraint proceedings 3206 
 
 Employment of child labor, deduction in computing tax 
 
 (Act Feb. 24, 1919) 1201 
 
 Estate tax, deductions (Act Feb. 24, 1919) 403 
 
 Income taixes, deduction (Act Feb. 24, 1919)| ^^*' ^^^l 
 
 Seizures 3206 
 
 Witnesses, clerks or employees sent away 850 
 
 EXPORTS— 
 
 Adulterated butter (Act May 9, 1902) 4 
 
 Articles sold or leased for export (Act Feb. 24, 1919) 1310 
 
 Cigars 3385 
 
 Drawback 3386 
 
 Packing for - ... .... - - - ■ - - ---- - -. 3397 
 
 Removal without §kgiimcbiX^Mia{<kmM^. 4, 1886) 1 
 
 Pag«. 
 
 654 
 647 
 648 
 
 525 
 
 530 
 529 
 529 
 530 
 529 
 
 530 
 529 
 686 
 171 
 158 
 
 540 
 580 
 576 
 582 
 585 
 586 
 119 
 541 
 527 
 
 516, 517 
 
 496 
 487 
 580 
 538 
 
 171 
 
 161 
 534 
 583 
 583 
 586 
 
 485, 487, 
 499 
 
 101 
 701 
 701 
 701 
 127 
 
 565 
 527 
 483, 487, 
 498 
 127 
 701 
 
 440 
 630 
 390 
 
 393 
 407 
 392 
 
956 INDEX. 
 
 EXPORTS— Continued. Section. Page. 
 
 Collectors, monthly accounts 3444 588 
 
 Denatured alcohol, sale (Act Oct. 28, 1919, Title III) 10, 13 367, 368 
 
 Distilled spirits, bond (Act June 9, 1874) 1 281 
 
 Bottling in bond (Act Mar. 3, 1897) 3 294 
 
 Entry, filing (Act June 9, 1874) 1 283 
 
 Fruitbrandy (Act Mar. 3, 1877) 6 253 
 
 Manufacture of certain articles from domestic spirits 
 
 in bonded warehouses 3433 607 
 
 Stamps 3314, 3330 269, 281 
 
 Tax-paid spirits 3329 279 
 
 Transfer to tank cars for export (Act Feb. 24, 1919) 624 286 
 
 Transportation bond on withdrawal of spirits (Act June 
 
 9,1874) 1 283 
 
 Withdrawal from bonded warehouses 3380 281 
 
 Fermented liquors (Act June 18, 1890) 317 
 
 Flavoring extracts, etc., produced in part from domestic 
 
 alcohol, drawback (Act Oct. 3, 1913) IV(0) 611 
 
 Manufacture of certain articles intended for export in bonded 
 
 warehouses 3433 607 
 
 (Act Oct. 3, 1913) IV 608 
 
 Mixedflour (Act June 13, 1898) 44 454 
 
 Oleomargarine (Act Aug. 2,1886) 16 436 
 
 Philippine Islands : (Act Mar. 8, 1902) 6 623 
 
 (Act Oct. 3, 1913) IV 623 
 
 Playingcards (Act Aug. 27, 1894) 43 572 
 
 Porto Rico (Act Apr. 12, 1900) 3,41 619,620 
 
 (Act Oct. 3, 1913) IV(D) 621 
 
 (Act Mar. 2, 1917) 9 621 
 
 Reimportation of articles (Act Oct. 3, 1913) IV(P) 611 
 
 Snuff 3385 390 
 
 Drawback 3386 393 
 
 Packages 3362 379 
 
 Removal without payment of tax... (Act Aug. 4,1886) 1 392 
 Stills manufactured for export, drawback (Act Mar. 1, 
 
 1879) 10 164 
 
 Superintendence of, by collector of internal revenue 3161 91 
 
 Tobacco 3385 390 
 
 Bond (ActFeb. 8,1875) 24 392 
 
 Drawback 3386 393 
 
 (Act Feb. 8, 1875) 25 393 
 
 Packages 3362 379 
 
 Removal without payment of tax . . (Act Aug. 4, 1886) 1 392 
 
 Retention where reimported (Act Oct. 3, 1913) 1 393 
 
 Sale or lease for export (Act Feb . 24, 1919) 1310 630 
 
 Withdrawal, transportation bond... (Act Feb. 8,1875) 24 391 
 
 Virgin Islands (Act Mar. 3,1917) 3,5 625,626 
 
 (Act Feb. 24, 1919) 1304 626 
 
 White phosphorous matches (Act Apr. 9, 1912) 11 460 
 
 EXPRESS TRANSPORTATION. {See Transportation tax.) 
 EXTORTION— 
 
 Informers, penalty (Act Mar. 4,1909) 145 677 
 
 Internal revenue officer or agent, ground for dismissal 3169 98 
 
 EXTRA COMPENSATION— 
 
 Clerks and employees 1764, 1765 700 
 
 (Act July 3, 1918) 6 60 
 EXTRACTS. {See Flavoring extracts.) 
 
 F. 
 FACTORIES— 
 
 Child labor, tax on employment. {See Child labor.) 
 FAIRS— 
 
 Admissions tax, exemptions (Act Feb . 24, 1919) 800(6) 540 
 
 Special tax (Act Feb. 24, 1919) 1001(7) 180 
 
 Digitized by Microsoft® 
 
INDEX, 957 
 
 FARM LOAN ASSOCIATIONS— 
 
 Income taxes, exemption (Act Feb. 24, 1919) 
 
 Interest upon securities .-(Act Feb. 24, 1919) 
 
 FARMERS— 
 
 Alcohol, manufacture for denaturation. .(Act Oct. 3, 1913) 
 Income taxes, exemption of associations, etc. (Act Feb. 24, 
 
 Leaf tobacco, sales (Act! Oct." l',' 1890) 
 
 Tobacco manufacturers (Act Aug. 27, 1894) 
 
 FEDERAL LAND BANKS— 
 
 Income taxes, exemption (Act Feb. 24, 1919) 
 
 FEES — 
 
 Appraisers of seized goods 
 
 Dismissal of officer or agent for receiving illegally 
 
 Distraint proceedings 
 
 District attorneys, collection, etc (Act May 28, 1896) 
 
 Gangers 
 
 (Actjuiy ■^ i898) 
 
 Marshals' collection, etc (Act May 28, 1896) 
 
 Membership fees, tax on. {See Dues.) 
 
 Sale of real estate for taxes 
 
 Special- tax payers, certifying copy of list of. 
 
 Statement as to 
 
 FERMENTED LIQUORS. {See National prohibition.) 
 
 Additional tax (Act Oct. 3, 1917) 
 
 Advertisements in certain States (Act Mar. 3, 1917) 
 
 Apparatus, installation in order to protect revenue (Act Feb . 
 24, 1919) 
 
 Barrels, fractional parts 
 
 Marks 
 
 Measure of contents 
 
 Bonds, brewers 
 
 Books, brewers • 
 
 Bottling, withdrawing liquor from unstamped packages for. 
 
 Branding packages 
 
 Conveyance to industrial distillery without payment of tax 
 (Act Feb. 24, 1919) 
 
 Evasion of tax 
 
 Exportation (Act June 18, 1890) 
 
 False stamps, permits, or dies, making, selling, or using 
 
 Food products, use during war (Act Aug. 10, 1917) 
 
 (Act Nov. 21, 1918) 
 
 Gallon defined (Act Mar. 1, 1879) 
 
 Industrial distillery, conveyance to, without payment of tax 
 (Act Feb . 24, 1919) 
 
 Interest of internal revenue officer in production, etc., of. . 
 
 Laws coextensive with jurisdiction of United States 
 
 Materials used, assessment based on (Act May 13, 1876) 
 
 Mode of affixing and canceling stamps 
 
 Monthly statement of brewers 
 
 Name of manufacturer, etc., marking on packages 
 
 Notice of business by brewer 
 
 Permit, carrying on business at another place on account of 
 
 accident 
 
 Removal 3341 
 
 Possession after removing from warehouse when tax not paid . 
 
 Purchase by brewer of fermented liquor from another brewer 
 
 Bate of tax 
 
 ' (Act Oct. 22, 1914) 
 (Act Sept. 8, 1916) 
 (Act Feb. 24, 1919) 
 
 Digitized by Microsoft® 
 
 Section. 
 
 Page. 
 
 ) 231 
 
 497 
 
 ) 213 
 
 482 
 
 ) IV(N) 
 
 302 
 
 231 
 
 497 
 
 ) 27 
 
 372 
 
 1 69 
 
 372 
 
 1 231 
 
 497 
 
 3460 
 
 599 
 
 3169 
 
 98 
 
 3206 
 
 127 
 
 1 6 
 
 661 
 
 3157 
 
 89 
 
 1 1 
 
 89 
 
 1 6 
 
 661 
 
 3197 
 
 122 
 
 3240 
 
 157 
 
 3158 
 
 91 
 
 1 307, 308 
 
 865 
 
 1 5 
 
 296 
 
 607 
 
 191 
 
 3339 
 
 308 
 
 3349 
 
 315 
 
 3339 
 
 308 
 
 3336 
 
 306 
 
 f 3336- 
 
 306, 
 
 13338, 3340 
 
 307, 310 
 
 3354 
 
 316 
 
 3349 
 
 315 
 
 609 
 
 313 
 
 3340 
 
 310 
 
 
 317 
 
 3346 
 
 314 
 
 15 
 
 200 
 
 1 
 
 204 
 
 21 
 
 310 
 
 609 
 
 313 
 
 3168 
 
 98 
 
 3448 
 
 590 
 
 
 307 
 
 3342 
 
 311 
 
 3337 
 
 306 
 
 3349 
 
 315 
 
 3335 
 
 305 
 
 3350 
 
 315 
 
 3341, 3345 
 
 310, 313 
 
 3352 
 
 316 
 
 3349 
 
 315 
 
 3339 
 
 308 
 
 1 
 
 763 
 
 400 
 
 831 
 
 608 
 
 309 
 
958 
 
 INDEX. 
 
 FERMENTED 2LIQTJOS S— Continued. Section. 
 
 Removal for storage without stamps 3345 
 
 Marks, etc., from jjackages 3349 
 
 Pipe line or conduit, use in removing to bottling estab- 
 lishment. .■. 3354 
 
 Under other than trade name 3449 
 
 Restrictions on use of food materials (Act Aug. 10, 1917) 15 
 
 (ActNov. 21, 1918) 1 
 
 Retail sales at brewery, stamps 3348 
 
 Selling, removing, etc., in packages, without stamp or with 
 
 false stamps, etc 3343 
 
 Shipments into State prohibiting sale... (Act Mar. 3,1917) 5 
 
 Sour malt liquors, removing without stamps 3347 
 
 Special tax, dealers 3244(5) 
 
 StaniPS {3341,1112 
 
 Affixing 3342 
 
 {3342 1 
 
 Removal by others than owners 3353 
 
 Reusing 3346 
 
 Unfermented worts, sale to other brewers 3351 
 
 Verification of entries in brewers' books 3338 
 
 Withdrawal from unstamped or falsely stamped packages . . 3344 
 FIDELITY INSURANCE— 
 
 Stamp taxes on policies, rate (Act Feb . 24, 1919) 
 
 FIDTJCIARIES— 
 
 Executors. {See Exeoutoes.) 
 
 Income taxes, payment (Act Feb . 24, 1919) 219 
 
 Returns (ActFeb. 24, 1919) 219,225 
 
 Witholding at source (ActFeb. 24, 1919) 221 
 
 Special tax liability , 3244(5) 
 
 PILLED CHEESE (Act June 6, 1896)— 
 
 Assessment of stamp tax 10 
 
 Board of appeals 15 
 
 Bonds, manufacturers 5 
 
 Books, manufacturers 5 
 
 Branding 6 
 
 Cheese defined 1 
 
 Date act effective 19 
 
 Definition 2 
 
 Manufacturer or dealer 3 
 
 Deleterious ingredients 15 
 
 Destruction of stamps on empty packages 14 
 
 Forfeiture .' 16, 17 
 
 Imports 11 
 
 Inventories, manufacturers 5 
 
 Labels 8 
 
 Marking 6 
 
 Notices, manufacturers 5 
 
 Numbers, manufacturers 5 
 
 Packages 6 
 
 Penalties, failure to affix required label 8 
 
 Failure to comply with law 5 
 
 Failure to display sign 7 
 
 Purchase of cheese not branded or stamped according to 
 
 law 12 
 
 Purchasing from manufacturer or importer who has not 
 
 paid special tax 13 
 
 Recovery 17 
 
 Sale in improper packages 6 
 
 Rate of tax 9 
 
 Regulations 18 
 
 Retail sales C 
 
 Returns, manufacturers 5 
 
 Digitized by Microsoft® 
 
 Page. 
 313 
 315 
 
 316 
 591 
 200 
 204 
 314 
 
 312 
 296 
 314 
 170 
 308 
 310, 311 
 311 
 
 311, 316 
 
 316 
 314 
 
 315 
 307 
 312 
 
 557 
 
 490 
 
 490, 404 
 
 491 
 
 171 
 
 447 
 448 
 445 
 445 
 446 
 445 
 448 
 445 
 175 
 448 
 448 
 448 
 447 
 445 
 447 
 446 
 445 
 445 
 446 
 447 
 446 
 446 
 
 448 
 
 448 
 448 
 446 
 447 
 448 
 446 
 445 
 
Section. 
 
 Page. 
 
 7 
 
 446 
 
 5 
 
 445 
 
 3,4 
 
 175, 176 
 
 13 
 
 448 
 
 9,14 
 
 447, 448 
 
 INDEX. 959 
 
 FILLED CHEESE (Act June 6, 1896)— Continued. 
 
 Signs, dealers 
 
 Manufacturers 
 
 Special tax, manufacturers or dealers _ 
 
 Purchasing from manufacturer, etc., who has not paid. 
 
 Stamps 
 
 FINES. (See Penalties.) 
 
 FIRE INSURANCE. {See Insurance tax.) 
 
 Companies, exemption from income taxes (Act Feb. 24, 
 
 1919) 231 497 
 
 FIRMS. {See Partneeships.) 
 FISCAL TEAR— 
 
 Adjustment of collectors' accounts 314G 76 
 
 Returns of taxpayers. {See specific heads.) 
 FLAVORING EXTRACTS— 
 
 Alcohol, drawback where used in articles exported (Act 
 
 Oct. 3, 1913) IV(0) 611 
 
 National prohibition act, exception from operation (Act 
 
 Oct. 28, 1919, Title II) 
 
 Special tax on manufacturers 
 
 FLOOR TAXES— 
 
 Cigars, etc (Act Feb. 24, 1919) 
 
 Distilled spirits (Act Feb. 24, 1919) 
 
 Payment, time (Act Feb. 24, 1919) 
 
 Returns (Act Feb. 24, 1919) 
 
 Snuff (Act Feb. 24, 1919) 
 
 Tobacco (Act Feb. 24, 1919) 
 
 FLOtTR. {See Mixed flour.) 
 FOOD— 
 
 Distilled spirits, use in production of . . . (Act Aug. 10, 1917) 
 
 (Act Nov. 21, 1918) 
 
 Distraint, exemption 
 
 FOREIGN CORPORATIONS— 
 
 Excess profits tax. {S-ee Excess profits taxes.) 
 Income taxes. {See Income taxes.) 
 FOREIGN COITNTRIES— 
 
 Bonds, exemption from stamp tax (Act Feb. 24, 1919^ 1101 554 
 
 Income taxes, evidence as to payment. . (Act Feb. 24, 1919) 222 493 
 
 Information at source as to interest on bonds (Act Feb. 
 
 24,1919) 256 509 
 
 Interest on inYestments by foreign governments as part 
 
 of gross income. . ' (Act Feb. 24, 1919) 213 482 
 
 FOREIGN ITEMS— 
 
 Income taxes, collection (Act Feb. 24, 1919) 259 510 
 
 FORFEITURES— 
 
 Collectors charged with money collected for 
 
 Duty to prosecute for 
 
 Commissions of persons accountable far public money 
 
 Commissioner to sanction suits for. 
 
 Costs in suits for 
 
 Defendant's liability 
 
 Counterfeit stamps and documents on which placed (Act 
 
 Feb . 24, 1919) 
 
 District attorneys, duty to prosecute proceedings for 
 
 Fraud, property found in possession in fraud of revenue 
 
 laws ; 
 
 Removing or concealing articles with intent to defraud 
 
 United States 
 
 Sales of property to evade tax — , — 
 
 Jurisdiction of suits to enforce (Act Mar. 3, 1911) 
 
 Exclusive jurisdiction of United States courts (Act 
 Mar. 3, 1911)- - ■ ..... ..... ....-,-...- - - 256 637 
 
 Digitized by Microsoft® 
 
 4 
 
 351 
 
 3246 
 
 176 
 
 702 
 
 402 
 
 604, 605 
 
 195, 196 
 
 1306 
 
 628 
 
 1306 
 
 628 
 
 702 
 
 381 
 
 7C^ 
 
 381 
 
 15 
 
 200 
 
 1 
 
 204 
 
 3187 
 
 119 
 
 3218 
 
 136 
 
 3213 
 
 132 
 
 3624 
 
 666 
 
 3214 
 
 134 
 
 969 
 
 646 
 
 974 
 
 646 
 
 1103 
 
 555 
 
 888 
 
 659 
 
 3453 
 
 594 
 
 3450 
 
 592 
 
 3454 
 
 596 
 
 24,43 
 
 636, 638 
 
960 INDEX. 
 
 FORPEITITIIES— Continued. Section. Page.! 
 
 Limitation of prosecutions for 1047 653 
 
 Name of United States, suits brought in ■. - 919 638 
 
 Packages included in forfeiture of goods 3457 597 
 
 Particular articles. (/See specific heads.) 
 
 Pajrment of judgments and moneys recovered or received 
 
 for, to collectors 3216 135 
 
 Remission 5292, 5293 654, 655 
 
 Application for 3461 601 
 
 Seizures. {See Searches and seizures.) 
 
 Siirety company's right to do business on failure to pay 
 
 judgment (Act Aug. 13, 1894) 6 614 
 
 Witnesses in proceedings to recover, persons interested in 
 
 share 5295 655 
 
 FOE.GERY— 
 
 Public records, bonds, bids, etc (Act Mar. 4, 1909) 28 679 
 
 Stamps (Act Apr. 9, 1912) 8 459 
 
 (Act Feb. 24, 1919) 1103 555 
 
 FomaxriiAs— 
 
 Manufacture of intoxicating liquor, advertisements, etc. 
 
 (Act Oct. 28, 1919, Title II) 18 357 
 
 FORTIFIED WINES. (-See Wines.) 
 FRATERNAL ORGANIZATIONS— 
 
 Dues, exemption from tax (Act Feb. 24, 1919) 801 541 
 
 Income taxes, exemption (Act Feb. 24, 1919) 231 496 
 
 Stamp tax, proxies for voting (Act Feb. 24, 1919) 560 
 
 FRAUD. {See specific heads, also.) 
 
 Appropriation for detecting (Act July 1, 1918) 1 605 
 
 Assuming to be Government ofiicer, penalty (Act Mar. 4, 
 
 1909) 32,66 675 
 
 Bid, bond, etc., falsely making, to defraud United States 
 
 (Act Mar. 4, 1909) 28 679 
 
 Collectors and internal revenue agents, duties as to pre- 
 vention, etc 
 
 Detection and punishment, sums to be paid 
 
 Disposing of or receiving empty stamped packages, etc 
 
 Documents required by law, executing 
 
 Drawback claims 
 
 Entry by internal revenue ofiicer or agent, ground for 
 
 dismissal 3169 98 
 
 False statement as to tax in connection with sale or lease 
 
 (Act Feb. 24, 1919) 1319 632 
 
 Making or presenting false, fictitious or fraudulent claims, 
 
 penalty (Act Mar. 4, 1909) 35 680 
 
 Officer making opportunity for others to defraud 3169 98 
 
 Particular taxes, in connection with. {See specific heads.) 
 
 Possessing property with intent to sell in fraud of law 3452 594 
 
 Removing or concealing articles with intent to defraud 
 
 United States 345O 592 
 
 Returns / 3173, 104, 
 
 ^ ^ , 13176,3179 108,111 
 
 Refund of second assessment necessitated because of 
 
 fraud 3225 146 
 
 Sales of property to evade tax 3454 596 
 
 Search warrants, gi'ound for issuing 3462 601 
 
 Seizure of property found in possession in fraud of laws 3453 594 
 
 Statement by internal revenue officer relative to fees 3158 91 
 
 FREIGHT TRANSPORTATION. {See Transportation 
 
 TAX.) 
 
 FRUIT GROWERS' ASSOCIATIONS— 
 
 Sales agents, exemption from income taxes (Act Feb 24 
 
 1919) ■...: 231 497 
 
 Digitized by Microsoft® 
 
 3163 
 
 92 
 
 3463 
 
 604 
 
 3455 
 
 596 
 
 3451 
 
 594 
 
 3443 
 
 588 
 
INDEX. 961 
 
 FRUIT JUICES— Section. Page. 
 
 Permit to manufacture for home use (Act Oct. 28, 1919, 
 
 Titlell) 29 361 
 
 FUEL— 
 
 Distraint, exemption 3187 119 
 
 FURNITURE— 
 
 Distraint, exemption 3187 119 
 
 FUTURES— 
 
 Sale of cotton for future delivery. (See Cotton ptttttres. ) 
 
 Stamp tax, sales of produce on exchange, etc., for future 
 dehvery (Act Feb. 24, 1919) 559 
 
 G. 
 
 GAS— 
 
 Excess profits tax, rate in case of sale of well (Act Feb. 24, 
 
 1919) 
 
 Income taxes, depletion and depreciation allowance (Act 
 
 Feb. 24, 1919) '.... 214,234 
 
 Surtax rate in case of bona fide sale of wells (Act Feb. 
 
 24, 1919) 
 
 GAUGERS— 
 
 Accounts (Act Apr. 17, 1900) 
 
 Annual leave (Act June 23, 1910). 
 
 Appointment 
 
 Assignment to duty (Act Aug. 27, 1894) 
 
 Bonds 
 
 Compensation 
 
 (Act Aug. 15, 1876) 
 (Act June 19, 1878) 
 (Act Aug. 27, 1894) 
 <Act July 7, 1898) 
 (Act Feb. 24, 1911) 
 (Act Feb. 24, 1919) 
 Employing distiller, etc., to use brands or perform his 
 
 duties 
 
 False or fraudulent inspection, etc 
 
 Fees 
 
 Fruit distilleries and wineries, assignment to (Act Sept. 8, 
 
 1916) 
 
 Number allowed in commission (Act July 7, 1884) 
 
 Oath 
 
 Per diem in lieu of subsistence (Act May 10, 1916) 
 
 Keport as to spirits to be exported (Act June 9, 1874) 
 
 Returns 
 
 Super\'ision and direction of J. 
 
 Transfer 
 
 (Act Aug. 15, 1876) 
 (Act Aug. 27, 1894) 
 (Act Apr. 17, 1900) 
 
 Traveling expenses 
 
 (Act Aug. 27, 1894) 
 GENDER— 
 
 Masculine, as applicable to female 1 70 
 
 GIFTS— 
 
 Clerks and employees making, to official superiors 
 
 District attorneys accepting, for compromise, etc 
 
 Estate tax, contemplation of death (Act Feb. 24, 1919) 
 
 Deductions (Act Feb. 24, 1919) 
 
 Income taxes, deductions (Act Feb. 24, 1919) 
 
 Exemption. (Act Feb. 24, 1919) 
 
 Marshals accepting, for compromise, etc 
 
 Receipt by internal revenue officer or agent as ground for 
 
 dismissal 3169 
 
 140184°— 20. 61 
 
 Digitized by Microsoft® 
 
 337 
 
 524 
 
 214, 234 
 
 485, 499 
 
 211 
 
 481 
 
 1 
 
 87 
 
 
 90 
 
 3156 
 
 88 
 
 65 
 
 89 
 
 3156 
 
 88 
 
 3157 
 
 89 
 
 1 
 
 89 
 
 1 
 
 89 
 
 63 
 
 87 
 
 1 
 
 89 
 
 
 86 
 
 621 
 
 191 
 
 3290 
 
 239 
 
 3292 
 
 239 
 
 3157 
 
 89 
 
 402 
 
 90 
 
 1 
 
 90 
 
 3156 
 
 88 
 
 1 
 
 84 
 
 1 
 
 283 
 
 3291 
 
 239 
 
 3156 
 
 88 
 
 3163 
 
 92 
 
 1 
 
 93 
 
 63 
 
 87 
 
 1 
 
 87 
 
 3157 
 
 89 
 
 63 
 
 87 
 
 1784 
 
 703 
 
 3170 
 
 101 
 
 402 
 
 526 
 
 '403 
 
 528 
 
 214, 219 
 
 486, 490 
 
 213 
 
 482 
 
 3170 
 
 101 
 
962 IKDEX. 
 
 GIN — Section. Pagfr., 
 
 Bottling in bond for export (Act Feb. 24, 1919) 626 286 
 
 Rate of tax (Act Feb. 24. 1919) 605 196 
 
 GRAIN— 
 
 Malt or vinous liquor, use in manufacturing during war (Act 
 
 Aug. 10, 1917) 15 318 
 
 (Act Nov. 21, 1918) 1 320 
 
 GROSS INCOME— 
 
 Definition ; (Act Feb. 24, 1919) 233 497 
 
 Income taxes, items included and excluded (Act Feb. 24, 
 
 1919) 213 481,482 
 
 Nonresident aliens (Act Feb. 24, 1919) 213 483 
 
 GUARANTEE COMPANIES. {See Surety companies.) 
 
 GUARANTY INSURANCE- ' 
 
 Stamp taxes on policies, rate (Act Feb. 24, 1919) 557 
 
 H. 
 HABEAS CORPUS— 
 
 Removal of prosecution against officer from State courts to 
 
 United States courts (Act Mar. 3,1911) 33 640 
 
 HAIL INSURANCE COMPANIES— 
 
 Income taxes, exemption (Act Feb . 24, 1919) 231 497 
 
 HARRISON ANTI-NARCOTIC LAW. {See Opium.) 
 HAWAII— 
 
 Collection district (Act Apr. 30, 1900) 87, 104 619 
 
 Collector of internal revenue (Act Apr. 30, 1900) 87 619 
 
 Constitution of United States applicable to (Act Apr. 30, 
 
 1900) 5,104 618,619 
 
 Deputy collectors of internal revenue ..(Act Apr. 30, 1900) 87 619 
 
 Income taxes, citizens (Act Feb . 24, 1919) 260 511 
 
 Officers (Act Feb. 24, 1919) 213(a) 481 
 
 Laws of United States applicable to (Act Apr. 30, 1900) 5, 104 618, 619 
 
 Revised Statutes of United States applicable to (Act Apr. 30, 
 
 1900) 5,104 618,619 
 
 HEAD OF DIVISION OR DEPARTMENT— 
 
 Designation as chief clerk 320 56 
 
 Estimates, time (Act Mar. 3,1901) 5 54 
 
 Reports 196 67 
 
 (Act Mar. 15, 1898) 7 56 
 
 (Act July 1, 1916) 3 67 
 
 HEAD OF FAMILY— 
 
 Distraint, exemption of property 3187 119 
 
 Income taxes, personal exemption (Act Feb. 24, 1919) 216 487 
 
 HEALTH INSURANCE COMPANIES— 
 
 Income taxes, deduction (Act Feb. 24, 1919) 234 500 
 
 ^fiOLDING COMPANIES— , 
 
 Income taxes, exemption (Act Feb. 24, 1919) 231 497 
 
 Prima facie evidence of purpose to escape surtax (Act 
 
 .Feb. 24, 1919) 220 491 
 
 HOLIDAYS— 
 
 District of Columbia 993 699 
 
 Exclusion in computing annual leave. . (Act Feb. 24, 1899) 4 65 
 
 Hoursofwork (Act Mar. 15, 1898) 7 64 
 
 HORTICULTURAL ORGANIZATIONS— 
 
 Income taxes, exemption (Act Feb . 24, 1919) 231 497 
 
 HOSPITALS— 
 
 Alcohol, v/ithdrawal 3297 257 
 
 (Act May 3,1878) 257 
 
 (Act Juno 4,1912) 258 
 
 I Liquor, use in treatment of alcoholism (Act Oct. 28, 1919, 
 
 Title II) 6 353 
 
 Digitized by Microsoft® 
 
INDEX. 
 
 963 
 
 HOTJKS OF LABOR— 
 
 Clerks or employees (Act Mar. 15, 1898) 
 
 HOtrSEHOLD FUBNITUSE— 
 
 Exemption from distraint 
 
 HXrSBAND AND WIFE— 
 
 Income taxes, credits (Act Feb. 24, 1919) 
 
 Special tax, wife carrying on business of deceased husband . 
 HYDROMETEBS— 
 
 Commissioner to supply, etc 
 
 Section. 
 
 Page. 
 
 7 
 
 61 
 
 3187 
 
 119 
 
 216 
 3241 
 
 487 
 158 
 
 ICE CREAM— 
 
 Tax on 
 
 •ILLNESS. (See Sickness.) 
 IMPORTS— 
 
 I. 
 
 .(Act Feb. 24, 1919) 
 
 1902) 
 
 1, 1879) 
 
 6, 1896) 
 1879) 
 1879) 
 1898) 
 1886) 
 17, 1914) 
 
 3, 1913) 
 , 27, 1894) 
 
 3, 1913) 
 1915). 
 
 Adulterated butter (Act May 9, 
 
 Cigars or cigarettes 
 
 Labels on boxes, etc , (Act Feb. 24, 1919) 
 
 Manufacture from imported tobacco (Act Oct. 3, 1913) 
 
 Rate of tax (Act Feb. 24, 1919) 
 
 Sale where not packed and stamped as required 
 
 Stamps - 
 
 Construction of act of March 2, 1833 
 
 Distilled spirits, effacing stamps, etc. . .(Act Mar. 1, 1879) 
 
 Inspecting, stamping, etc f Act Mar. 1, 1879; 
 
 Special stamps (ActMar. 
 
 Filled cheeser (Act June 
 
 Malt liquors, effacing stamps, etc (Act Mar. 
 
 Inspecting, stamping, etc (Act Mar. 
 
 Mixed flour (Act June 13, 
 
 Oleomargarine (Act Aug. 2, 
 
 Opium (Act Dec. 
 
 Philippine Islands (Act Oct. 
 
 Flaying cards (Act Aug. 
 
 Porto Kico (Act Oct. 
 
 (Act Mar. 
 Reimportation of articles on which no revenue tax was paid, 
 
 etc (Act Oct. 3, 1913) 
 
 Snuff 
 
 Tobacco 
 
 (Act Oct. 3, 1913) 
 
 Virgin Islands f Act Feb. 
 
 White phosphorous matches (Act Apr. 
 
 INCOME TAXES— 
 
 Appropriation for collecting (Act July 3, 1918) 
 
 Liberty bonds, first loan, exemption (Act Apr. 24, 1917) 
 
 Second loan, exemption (Act Sept. 24, 1917) 
 
 (ActSept. 24, 1918) 
 
 Third loan, exemption (Act Apr. 4, 1918) 
 
 Victory loan, exemption (Act Mar. 3, 1919) 
 
 Returns, disclosure of contents by collector, clerk, etc 
 
 War Finance Corporation bonds, exemption (Act Apr. 5, 
 
 1918) 
 
 Act February 34, 1919— 
 
 Additional tax, understatement in return 
 
 Bonds, foreign countries, information at source as to in- 
 terest 
 
 Securing making of return and payment of tax 
 
 Brokers, returns. - 
 
 Claims, abatement, additional tax in case of 
 
 Collection, method, etc .^. 
 
 Foreign items 
 
 24, 
 9, 
 
 1919) 
 1912) 
 
 321 
 
 630 
 
 4 
 
 3392 
 
 700 
 
 1V(M) 
 
 700 
 
 3403 
 
 3402 
 
 3465 
 
 12 
 
 11 
 
 11 
 
 11 
 
 12 
 
 11 
 
 42 
 
 10 
 
 1 
 
 IV 
 
 46 
 
 IV 
 
 IV(P) 
 3377 
 3377 
 
 1(404) 
 
 1304 
 
 10 
 
 1 
 1 
 
 7 
 
 1 
 
 3 
 
 1,2 
 
 31«7 
 
 16 
 250 
 
 54 
 
 343 
 
 440 
 399 
 402 
 411 
 402 
 410 
 409 
 612 
 290 
 289 
 289 
 447 
 290 
 289 
 454 
 434 
 417 
 624 
 573 
 621 
 625 
 
 611 
 387 
 387 
 393 
 626 
 459 
 
 57 
 581 
 581 
 584 
 583 
 585, 586 
 
 96 
 
 583 
 504 
 
 256 
 
 509 
 
 250 
 
 504 
 
 255 
 
 509 
 
 250 
 
 506 
 
 1307 
 
 628 
 
 259 
 
 510 
 
 Digitized by Microsoft® 
 
964 
 
 INDEX, 
 
 INCOME TAXES— Continued. 
 Act February 24, 1919 — Continued. Section. 
 
 Corporations, abatement of tax 234 
 
 Accident insurance companies, deductions 234 
 
 Affiliated corporations, consolidated returns 240 
 
 Agricultural organizations, exemption 231 
 
 Amortization of cost of plants, etc., for war uses 234 
 
 Assignees, returns 239 
 
 Bad debts, deduction 234 
 
 Boards of trade, exemption 231 
 
 Bond, abatement claim 234 
 
 Redetermination of tax 238 
 
 Building and loan associations, exemption 231 
 
 Business expenses, deduction 234 
 
 Business leagues, exemption 231 
 
 Business losses, deduction 234 
 
 Cemetery companies, exemption 231 
 
 Chambers of commerce, exemption 231 
 
 Charitable organizations, exemption 231 
 
 Civic leagues, exemption '. 231 
 
 Clubs, exemption 231 
 
 Computation, net income 232 
 
 Tax 236 
 
 Conditional exemptions 231 
 
 Consolidated returns of affiliated corporations 240 
 
 Cooperative banks and telephone companies, exemp- 
 tion - 231 
 
 Credit, overpayment of tax 234 
 
 Credits, desi^ation 236 
 
 Cruelty to children and animals, exemption of corpora- 
 tions for prevention of 231 
 
 Cyclone insurance companies, exemption 231 
 
 Deductions, items allowed 234 
 
 Items not allowed 235 
 
 Depletion, allowance for, 234 
 
 Depreciation, allowance for 234 
 
 Ditch companies, exemption 231 
 
 Dividends, tax-paid, deduction 234 
 
 Domestic building and loan associations, exemption. . . 231 
 
 Domestic corporations, credit 236 
 
 Educational corporations, exemption 231 
 
 Excess profits taxes, credit < qqb 040 ( 
 
 Deduction '234 
 
 Exemptions - 231 
 
 Exhaustion of property, deduction 234 
 
 Expenses, deduction 234 
 
 Farm loan associations, exemption .' 231 
 
 Farmers' associations operated as sales agents, 'exemp- 
 tion 231 
 
 Farmers' insurance companies, exemption 231 
 
 Federal land banks, exemption 231 
 
 Fire insurance companies, exemption 231 
 
 Foreign corporations, deductions 234 
 
 Gross income 233 
 
 Payment of tax at source 237 
 
 Returns 239 
 
 Foreign taxes, credit 240 
 
 Deduction 234 
 
 Fraternal beneficiary societies, exemption 231 
 
 Fraternities, exemption 231 
 
 Fruit growers' associations operated as sales agents, ex- 
 emption 231 
 
 Gas wells, depletion a,nd depreciation allowance 234 
 
 Gross income, definition 233 
 
 Hail, etc., insurance companies, exemption 231 
 
 Health insurance companies, deductions 234 
 
 Digitized by Microsoft® 
 
 500 
 500 
 503 
 496 
 499 
 503 
 499 
 496 
 500 
 502 
 496 
 498 
 496 
 499 
 496 
 496 
 496 
 497 
 497 
 497 
 501 
 496 
 503 
 
 496 
 501 
 501 
 
 496 
 497 
 498 
 501 
 499 
 499 
 497 
 499 
 496 
 502 
 496 
 
 501-503 
 
 498 
 496 
 499 
 498 
 497 
 
 497 
 497 
 497 
 497 
 501 
 498 
 502 
 503 
 504 
 501 
 496 
 496 
 
 497 
 499 
 497 
 497 
 500 
 
INDEX. 
 
 966 
 
 mCOMB TAXES— Continued. 
 Act February 34, 1919— Continued. 
 Corporations — Continued. Section. 
 
 Holding companies, exemption 231 
 
 Prima facie evidence of purpose to escape surtax 
 
 (Act Feb. 24, 1919) 220 
 
 Horticultural organizations, exemption 231 
 
 Income taxes, credits 236, 238 
 
 Insurance companies, deductions 234 
 
 Exemptions 231 
 
 Interest, deduction 234 
 
 Rate of deductions and withholding 237 
 
 United States obligations, credit 236 
 
 Inventories, deduction of losses from reduction 234 
 
 Irrigation companies, exemption 231 
 
 Labor organizations, exemption 231 
 
 Leases, deduction for depletion, etc., in case of 234 
 
 Life insurance companies, deductions 234 
 
 Gross income 233 
 
 Local b enefit assessments, deduction 234 
 
 Lodges, exemption 231 
 
 Losses, deduction 234 
 
 Mines, depletion and depreciation allowance 234 
 
 Mutual ditch or irrigation companies, exemption 231 
 
 Mutual insurance companies, deductions 234 
 
 Exemption ■. 231 
 
 Mutual marine insurance companies, deductions 234 
 
 Gross income 233 
 
 Mutual savings banks, exemption 231 
 
 Mutual telephone companies, exemption 231 
 
 National farm loan associations, exemption 231 
 
 Net income, computation 232 
 
 Definition 232 
 
 Obsolescence, deduction 234 
 
 jQil wells, depletion and depreciation allowance 234 
 
 Overpayment of tax, credit 234 
 
 Payment of tax 234 
 
 Source... 237 
 
 Personal service corporations, credits 218 
 
 Dividends 201 
 
 Exemption 231 
 
 Fiscal year with different rates 205 
 
 Returns -. 239 
 
 Dividend payments 254 
 
 Pleasure clubs, exemption 231 
 
 Premium deposits returned , deduction 234 
 
 Premium repayments, deduction 234 
 
 Rates of tax 230 
 
 Receivers, returns ,. 239 
 
 Recreation clubs, exemption 231 
 
 Redetermination, etc., of tax 234, 238 
 
 Refund overpayment of tax 234 
 
 Religious corporations, exemption. 231 
 
 Returns, consolidated 240 
 
 Contents, etc '. 239 
 
 Dividend payments 254 
 
 Inspection by stockholder 257 
 
 Time and place for filing 241 
 
 Sales agents, exemption 231 
 
 Savings banks, exemption 231 
 
 Scientific corporations, exemption 231 
 
 Social clubs, exemption 231 
 
 Taxes, deduction 234 
 
 Tax-paid dividends, deduction. 234 
 
 Telephone companies, exemption 231 
 
 Transportation systems 230 
 
 'Trustees for exempted organizations 231(12) 
 
 In bankruptcy £>j^jfeecf -by-MiGFOSOff® 239 
 
 497 
 
 491 
 496 
 
 501, 502 
 500 
 497 
 498 
 502 
 501 
 500 
 497 
 496 
 499 
 500 
 497 
 498 
 496 
 499 
 499 
 497 
 500 
 497 
 500 
 498 
 496 
 497 
 497 
 497 
 497 
 499 
 499 
 
 499, 501 
 501 
 502 
 489 
 474 
 497 
 477 
 503 
 508 
 497 
 500 
 500 
 496 
 503 
 497 
 
 501, 502 
 
 499, 501 
 496 
 503 
 503 
 508 
 510 
 504 
 497 
 496 
 496 
 497 
 498 
 499 
 497 
 496 
 497 
 503 
 
966 INDEX. 
 
 INCOME TAXES— Continued. 
 Act February 24, 1919— Continued. 
 
 Corporations— Continued. Section. Page. 
 
 United States, credits of interest on obligations 236 501 
 
 War Finance Corporation, interest on bonds, credits . . 236 501 
 
 War profits taxes, credit 236, 238, 240 501-503 
 
 Deduction 234 498 
 
 Wear and tear, deduction 234 499 
 
 Withholding tax at source 237 502 
 
 Worthless debts, deduction 234 499 
 
 Credits, excess of tax paid 250 505 
 
 Excess payments under previous laws 253 508 
 
 Fiscal year with different rates 205 477 
 
 Definitions, aflfiliated corporations 240 504 
 
 Di%ddend 201 474 
 
 Fiduciary 200 474 
 
 Fiscal year 200 473 
 
 Gross income 213, 233 481, 497 
 
 Net income 212, 232 481, 497 
 
 NetloBs 204 476 
 
 Paid 200 474 
 
 Paid or accrued 200 474 
 
 Paid or incurred 200 474 
 
 . Personal service corporation 200 474 
 
 Taxable year 200 473 
 
 Withhold-ing a^ent 200 474 
 
 Dividends, definition 201 474 
 
 Earningsorprofitsfrom which deemed to be made 201 474 
 
 Liquidation of corporation 201 475 
 
 Payments, returns , 254 508 
 
 Personal service corporation 201 474 
 
 Stock dividends 201 475 
 
 Estates, credits 219 488 
 
 Deduction of net losses by beneficiaries 204 477 
 
 Returns 219 490 
 
 Estate tax, deductions 403 527 
 
 Exchange of property, basis for determining gain or loss 202 475 
 
 False or fraudulent returns, penalties 250 506 
 
 Fiscal year with different rates 205 477 
 
 Foreign countries, evidence as to payment 222 493 
 
 Information at source as to interest on bonds , 256 509 
 
 Interest on investments by foreign governments as part 
 
 of gross income 213 482 
 
 Foreign items, collection 259 510 
 
 Gain or loss on sale or exchange of property, basis for de- 
 determining 202 475 
 
 Individuals, accounting period changed, returns 226 495 
 
 Agents, returns by 223 494 
 
 Aliens. (See Nonresident aliens, post.) 
 
 Alien residents, credits for taxes paid 222 493 
 
 Amortization of cost of plants, etc., for war uses 214 485 
 
 Appeal to Commissioner where amount of income in- 
 creased by collector 228 495 
 
 Bad debts, deduction 214 485 
 
 Bequests^ gross income 213 482 
 
 Bond, filing in connection with abatement claim 214 486 
 
 Business expenses, deduction .- 214 483 
 
 Business losses, deduction 214 484 
 
 Casualty losses, deduction 214 484 
 
 Charitable organizations, deduction of gifts to 214, 219 486, 490 
 
 Claims, abatement for loss sustained 214 486 
 
 Compensation, gross income 213 481 
 
 Computation of net income 212 481 
 
 Corporation profits , 220 491 
 
 Credits, estates and trusts 219 490 
 
 Nonresident aliens 217 488 
 
 Object specified 216 487 
 
 Overpayments of tax 214 483 
 
 Digitized by Microsoft® 
 
INDEX. 967 
 
 INCOliIE TAXES— Oontinned. 
 Act February'24, 1919 — Continiied. 
 Individuals — Continued . 
 
 Credits — Continued. Section. Pago. 
 
 Partnerslups 218 488 
 
 Payment of tax at source where claim filed 221 492 
 
 Personal service corporations 218 489 
 
 Taxes.... 222 493 
 
 Cruelty to animals or children, deduction of gifts to 
 
 societies for prevention of 214, 219 486, 490 
 
 Deductions allowable 214, 215 483, 487 
 
 Dependents, credit for 216 487 
 
 Depletion, allowance for 214 485 
 
 Depreciation, allowance for 214 485 
 
 Descent, property acquired by, gross income 213 482 
 
 Devise, property acquired by, gross income t 213 482 
 
 District of Columbia, interest on obligations of, gross 
 
 income 213 482 ' 
 
 Dividends, credits 216 487 
 
 Gross income 213 481 
 
 Educational orgaitdzations, deduction of gifts to 214, 219 486, 490 
 
 Estates, credits 219, 222 488, 493 
 
 Evidence, taxes paid to foreign countries, etc 222 493 
 
 Excess-profits taxes, credits , 218 489 
 
 Deduction 214,220 484,491 
 
 Exemptions, personal 216 487 
 
 ExhjauBtion or property, deduction 214, 215 485, 487 
 
 Expenses, deduction 214, 215 483, 487 
 
 Extension of time for filing returns 227 495 
 
 Farm loan associations, interest on securities, gross 
 
 income 213 482 
 
 Fiduciaries, returns 225 494 
 
 Foreign governments, credits for taxes paid to 222 493 
 
 Interest on investments by, gross income . 213 482 
 
 Ga^ wells, depletion and depreciation allowance 214 485 
 
 Surtax rate in case of bona fide sale 211 481 
 
 GiftB, deduction 214,219 486,490 
 
 Gross income 213 482 
 
 Gross income, items included 213 481 
 
 Items not included 213 482 
 
 Woiiresident aliens 213 483 
 
 Htisband and wife, credits 216 487 
 
 Indemnity of withholding agents 221 492 
 
 Interest, deduction 214 484 
 
 Delinquency in payment 250 506 
 
 Federal securities and obligations, credits 216, 236 487, 501 
 
 Gross income 213 484 
 
 Information at source 256 509 
 
 Rate of deductions and withholding .' 237 502 
 
 <Tax paid at source 221 491 
 
 Joint fiduciaries, returns 225 494 
 
 Leases, depletion, etc., deductions in case of 214 485 
 
 Life insurance policies, deduction of premiums paid... 215 487 
 
 Premiums paid by beneficiaries, gross income 213 482 
 
 Proceeds, gross income 213 482 
 
 Local benefit assessments, deduction 214 484 
 
 Losses, deduction 214 484 
 
 Military forces, exemption of persons in 213 483 
 
 Mines, depletion and depreciation allowance 214 485 
 
 Surtax rate in case of bona fide sale 211 481 
 
 Naval forces, exemption of persons in 213 483 
 
 Net income, computation 212 481 
 
 Computation where accounting period changed . . . 220 495 
 
 Deductions 214 483 
 
 Definition 212 481 
 
 Estates 219 489 
 
 Digitized by Microsoft® 
 
968 INDEX. 
 
 INCOME TAXES— Continued. 
 
 Act February 24, 1919— Continued. 
 
 Individuals — Continued! Section. 
 
 Nonresident aliens, credits ■ .-.. 216,217 488 
 
 Deductions 214, 217 487, 488 
 
 Gross income 213 483 
 
 Payment of tajt at source 221 491 
 
 Returns ; 217 488 
 
 Normal tax, credits 217 488 
 
 Rates 210 478 
 
 Oath, fiduciaries making returns 225 494 
 
 Obsolescence, deduction 214 485 
 
 Ojl wells, depletion and depreciation allowance 214 485 
 
 Surtax rate in case of bona fide sale 211 481 
 
 Overpayment of tax, credit 214 485 
 
 Partners, credits 218, 222 488, 493 
 
 Fiscal year with different rates 205 477 
 
 Net income, computation 218 488 
 
 Net losses 204 477 
 
 Rates for fiscal year 218 488 
 
 Returns ' 224 494 
 
 Payment, fiduciaries 219 490 
 
 Source 221 491 
 
 Personal exemption 216 487 
 
 Personal expenses, deduction 215 487 
 
 Premiums on life insurance policies paid by benefi- 
 ciaries, gross income 213 482 
 
 Public utilities, income derived from. 213 483 
 
 Rate, normal tax 210 478 
 
 Partnership fiscal year 218 488 
 
 Surtax 211 479 
 
 Redetermination, etc., of tax within three years 214 485 
 
 Religious organizations, deduction of gifts to 214, 219 486, 490 
 
 Rent, gross income 213 481 
 
 Returns, accounting period changed 226 495 
 
 Estates 219 490 
 
 Fiduciaries 219, 225 490, 494 
 
 Necessity and contents 223 494 
 
 Nonrpsident aliens 217 488 
 
 Partnerships 224 494 
 
 Place for filing 227 495 
 
 Timeforfiling 227 495 
 
 Towhommade 227 495 
 
 Twist estates 219 489 
 
 Understatement in .- 228 495 
 
 Withholding agents. .. , 221 492 
 
 Salaries, gross income 213 481 
 
 Scientific organizations, deduction of gifts to 214, 219 486, 490 
 
 Soldiers and sailors, income taxable 213 483 
 
 State obligations, interest on, gross income 213 482 
 
 Surtax, accumulation of profite to escape 220 491 
 
 Rates 211 478 
 
 Taxes, credits 222 493 
 
 Deduction 214 483 
 
 Territories, interest on obligations of, gross income .... 213 482 
 
 Time, filing returns 227 495 
 
 Trusts, credits 219 490 
 
 Credits for taxes paid 222 493 
 
 Understatement in returns 228 495 
 
 United States, interest on obligations of, credits 216 487 
 
 Interest on obligations of, gross income ' 213 482 
 
 Ofiicers and employees, gross income 213 481 
 
 Possessions, credits for taxes paid 222 493 
 
 Vocational reha.bilitation, deduction of contributions 
 
 tofundfor 214 486 
 
 Wages, gross income 213 481 
 
 War Finance Corporation, interest on bonds of , credits. 216 487 
 
 Interest on bonds of, gross income 213 482 
 
 Digitized by Microsoft® 
 
INDEX. 
 
 969 
 
 INCOME TAXES— Continued. 
 Act February 24, 1919— Continued. 
 
 Individuals — Continued. Section. 
 
 War profits taxes, deduction 214, 220 
 
 War service, gross income of persons in 213 
 
 Wear and tear, deduction 214, 215 
 
 Withholding agents, claims for credits 217 
 
 Returns 221 
 
 Withholding tax at source 221 
 
 Worthless debts, deduction 214 
 
 Information at source 254, 256 
 
 Inspection of returns 257 
 
 Interest, corporation obligations, information at source 256 
 
 Delinquency in payment of tax 250 
 
 Inventories, basis for 203 
 
 Licenses, collection of foreign items 259 
 
 List, taxpayers 257 
 
 Name and address of recipient of income, information at 
 
 source 256 
 
 Net losses, deduction, redetermination of tax, etc 204 
 
 Notice, due date of tax 250 
 
 Partnerships, credits 218, 222 
 
 Fiscal year with different rates 205 
 
 Net income, computation 218 
 
 Net losses 204 
 
 Rates for fiscal year 218 
 
 Returns 224 
 
 Payment, immediate, where taxpayer by acts prejudices 
 
 collection 250 
 
 Installments 250 
 
 Interest in case of delinquency 250 
 
 Receipts for 251 
 
 Receiving certificates of indebtedness and uncertified 
 
 checks 1314 
 
 Time 250 
 
 Penalties, failure to collect tax 253 
 
 Failure to make return 253 
 
 False or fraudulent returns 250 
 
 Nonpayment of tax 253 
 
 Willful refusals, evasions, etc, 253 • 
 
 Personal service corporation, credits 218 
 
 Dividends 201 
 
 Exemption 231 
 
 Eiscal year with different rates 205 
 
 Return 239 
 
 Dividend payments. 254 
 
 Philippine Islands, levy, assessment, etc., of tax 261 
 
 Porto Rico, levy, assessment, etc., of tax 261 
 
 Publication of statistics 258 
 
 Punishment, divulging contents of returns 257 
 
 Unlicensed collections of foreign items 259 
 
 Willful evasions, etc., as te returns and payments 253 
 
 Rates, fiscal .year ^th different rates 205 
 
 Parts of income subject to rates for different years 206 
 
 Receipts for payment 251 
 
 Recomputation of tax - 250 
 
 Refund, credits for excess payments under previous laws. - 252 
 
 Excess of tax paid 250 
 
 Fiscal year with different rates 205 
 
 Returns, brokers 255 
 
 Dividend payments 254 
 
 Examination and recomputation 250 
 
 False or fraudulent, penalty 250 
 
 Inspection 257 
 
 Public records 257 
 
 State officials, access to returns 257 
 
 Statistics, publication 258 
 
 Time limit on suits for^pfg^fof 'M/fcA-D-^d./?®- ^^'^ 
 
 484, 491 
 483 
 
 485, 487 
 488 
 491 
 491 
 485 
 
 508, 509 
 510 
 509 
 506 
 476 
 510 
 510 
 
 509 
 476 
 506 
 488, 493 
 477 
 488 
 477 
 488 
 494 
 
 506 
 504 
 506 
 507 
 
 132 
 504 
 508 
 508 
 506 
 508 
 508 
 489 
 474 
 497 
 477 
 503 
 508 
 511 
 511 
 510 
 510 
 510 
 508 
 477 
 478 
 507 
 505 
 508 
 505 
 477 
 509 
 508 
 ""- 505 
 506 
 510 
 510 
 510 
 510 
 506 
 
970 IBTDEX. 
 
 INCOME TAXES— Continued. 
 
 Act February 34, 1919 — Continued, Section. 
 
 Trusts, deduction of net lossps by beneficiaries 204 774 
 
 Understatement in return, additional tax 250 506 
 
 United States, officers, information at source 256 509 
 
 Possessions, taxation of citizens 260 511 
 
 Act October 3, 1917— 
 
 Additional normal tax, rate 1 850 
 
 Additional tax, rate 2 850 
 
 Alaska railroads (Act July 18, 1914) __ 853 
 
 Assessment 3, 4, 1001< 
 
 851, 852, 
 887 
 
 851, 852, 
 887 
 
 collection {3> 4- ^ «^^.^ 
 
 Computation 3, 4 851, 852 
 
 Corporations, additional tax 4 852 
 
 Credits, corporations 4 852 
 
 Exemptions 3 851 
 
 Fiscal year, computation of tax 4 852 
 
 Normal tax, additional, rate 1 850 
 
 Payment 3, 4, 1002| 
 
 Advance 1009 889 
 
 Certificates of indebtedness 1010 889 
 
 Fractions of cent 1008 889 
 
 Installment 1009 889 
 
 Uncertified cbecks 1010 889 
 
 Penalty, failure to make return 1004 887 
 
 False or fraudulent return 1004 . 887 
 
 Philippine Islands 5 853 
 
 Porto Rico 5 853 
 
 Rate, additional normal tax 1 850 
 
 Additional tax 2 850 
 
 PkOcords of taxpayers 1001 887 
 
 Regulations 1005 888 
 
 Returns f3, 4, lOOl,! 851,852, 
 
 Penalty for failure to make, etc 1004 887 
 
 Withholding at source 3 851 
 
 Releaseoftax 1212 901 
 
 Act September 8, 1916— 
 
 Appeal to Commissioner from decision of collector 19 819 
 
 Applicability of earlier laws 22 819 
 
 Collectors, investigations by_ deputies 16 816 
 
 Compelling attendance of witnesses, etc 20 819 
 
 Corporations, agricultural organizations, exemption 11(a) 806 
 
 Assessment insurance companies, exemption of guaranty 
 deposits 
 
 Assessment of tax ^ 
 
 Assignees, returns 
 
 Beneficiary societies, exemption 
 
 Boards of trade, exemption 
 
 Building and loan associations, exemption 
 
 Business expenses, deduction 12(a, 
 
 Business leagues, exemption " " 
 
 Cemetery companies, exemption 
 
 Chambers of commerce, exemption 
 
 Charitable organizations, exemption 
 
 Civic leagues, exemption 
 
 Clubs, exemption 
 
 Computation of tax 
 
 ■V Coopera,tive banks and telephone companies, exemption 
 
 Deductions, domestic corporations 
 
 Foreign corporations 12^6) 810 
 
 Definitions, dividends 10 806 
 
 Demand, payment of tax 14(a) 814 
 
 Depletion allowance 12(a, 6) 808, 810 
 
 Depreciation allowance 12(a, b) 808. 810 
 
 Digitized by Microsoft® 
 
INDEX. 971 
 
 INCOME TAXES— Continued. 
 Act September 8, 1916 — Continued. 
 
 Corporations— Continued. Section. Page. 
 
 District of Columbia, taxability of income accruing to . . 11(6) 807 
 
 Domestic building and loan associations, exemption 11(a) 806 
 
 Educational organizations, exemption 11(a) 806 
 
 Exemptions 11 806 
 
 Expeoses, deduction 12(a, fc) 808,810 
 
 Farmers' mutual fire insurance companies, etc 11(") 807 
 
 Farmers' sales associations, exemption 11(a) 807 
 
 Federal lan4 banks, exemption llW 807 
 
 Fiscal year 13{o) 812 
 
 Rate 10 806 
 
 Time for payment of tax 14(a) 814 
 
 Foreign corporations, deductions 12(5) 810 
 
 Rate 10 805 
 
 Fraternal beneficiary societies, exemption 11(a) 806 
 
 Fruit" growers' sales associations, exemption 11(a) 807 
 
 Gain or loss from disposition of property, basis for de- 
 termining 10 806 
 
 Gas wells, depletion allowance 12(a, 5) 808, 810 
 
 Holding companieSj exemption ^^°'} ^07 
 
 Horticultural organizations, exemption 11(a) 806 
 
 Improvements, deduction of amount paid out for 12(0, 6) 8W8, 810 
 
 Insurance companies, losses, deduction 12(a, 6) 808, 810 
 
 Interest, deduction 12(a, 6) 809, 811 
 
 Delinquency in payment of tax 14(o) 814 
 
 Joint stock land banks, exemption 11 W 807 
 
 Labor organizations, exemption 11(a) 806 
 
 Life insurance companies, deduction ,. 12(a,6) 809,811 
 
 Local benefit assessments, deduction 12(o) 809 
 
 Lodges, exemption 11(a) 806 
 
 Losses, deduction 12(o, 6) 808,810 
 
 Mines, depletion allowance :.. 12(a, b) 808,810 
 
 Mutual ditch or irrigation companies, exemption 11(a) 807 
 
 Mutual employers liability, etc., companies, deduction. 12(a, 5) 808,810 
 
 Mutual fire insurance companies, etc., exemption 11(a) 807 
 
 Mutual marine insurance companies, deductions 12(a, 6) 809, 811 
 
 Mutual savings banks, exemption 11(a) 806 
 
 Mutual telephone companies , exemption 11 W 807 
 
 National farm -loan associations, exemption 11(a) 807 
 
 Notice, assessment 14(a) 814 
 
 Fiscalyear 13(a) 812 
 
 Payinent of tax 14(a) 814 
 
 Oil wells, depletion allowance 12 (a, 6) 808, 810 
 
 Partnerships, exclusion 10 805 
 
 Penalties, delinquency in payment of tax 14(a) 814 
 
 Failure to file return, etc 14(c) 815 
 
 Philippine Islands, taxability of income accruing to 
 
 government of 11(6) 807 
 
 Pleasm-e clubs, exemption ll(a) 807 
 
 Porto Rico, taxability of income accruing to govern- 
 
 mentof , 11(6) 807 
 
 Preferredstock,deductionofinterestordividendson. .. 12(a) 809 
 
 Publicutilities, taxability of income from 11(6) 807 
 
 Rate 10 805 
 
 Receivers, returns 13(c) 812 
 
 Refunds 14(a) 814 
 
 Religious organizations, exemption 11(a) 806 
 
 Rentals, deduction 12(o, 6) 808,810 
 
 Returns, basis of accounts 13((i) 813 
 
 Commissioner to make, when ' 14(a) 814 
 
 Filing in Commissioner's ofiice 14(6) 815 
 
 Fiscalyear 13(a) 812 
 
 Inspection i. 14(6) 815 
 
 Necessity, contents, etc 13(6) 812 
 
 Penalty for failure to file 14(c^ 815 
 
 Receivers, assignees, etc 13(c) 812 
 
 uigitized by Microsoft® 
 
972 INDEX. 
 
 INCOME TAXES— Continued. 
 Act September 8, 1916 — Continued. 
 
 Corporations— Continued. Section. Page. 
 
 Revised Statutes, section 3225, amended 14(d) 815 
 
 Savings banks, exemption 11(a) 806 
 
 Scientific organizations, exemption 11(0) 806 
 
 Social welfare organizations, exemption, , 11(a) 807 
 
 States, taxability of income accruing to 11(6) 807 
 
 Taxes, deduction 12(a, 6) 809, 811 
 
 Tax-free covenant in bonds 12(a, 6) 809, 811 
 
 Territories, taxability of income accruing to 11(6) 807 
 
 Trustees in bankruptcy, retiu-ns 1 T 13(c) 812 
 
 Undistributed net income 10 896 
 
 Withholding tax at source 13(e,/) 813 
 
 Credits, excess profits tax paid , 29 900 
 
 Definitions, dividends Z\(a) 900 
 
 State 15 815 
 
 United States.. 15 815 
 
 Divulging information 16 816 
 
 Earlier laws, application 22 819 
 
 Excess profits tax, credits 29 900 
 
 Foreign governments, taxation of income 30 900 
 
 Individuals, absentees, returns 8(6), 9(6) 800, 804 
 
 Additional tax, rate 1(6, c) 794 
 
 Undistributed profits 3 796 
 
 Agents, returns by 8(5), 9(6) 800, 804 
 
 Annuities, exemption 4 796 
 
 Assessment of tax 9(a) 802 
 
 Bad debts, deduction 5(a), 6 797,799 
 
 Bequests, exemption of property acquired by 4 796 
 
 Business expenses and losses, deduction 5(a), 6 797-799 
 
 Certificate, allowance of deductions 9(5> 803 
 
 Computation .• 8(a) 800 
 
 Contributions to charitable, etc., organizations, deduc- 
 tion 5 891 
 
 Credits, nonresidents 6(6) 799 
 
 Partners 8(e) 802 
 
 Residents 5(5, e) 798 
 
 Dealers in foreign securities, etc., license 9(/) 804 
 
 Deductions, nonresidents 6 798 
 
 Residents 5(o) 797 
 
 Tax paid at source 9(6) 803 
 
 Definitions, dividends 2(a) 795 
 
 Income 2(a) 795 
 
 Depletion allowance 5(a), 6 797, 799 
 
 Depreciation allowance 5(o), 6 796, 799 
 
 Descent,exemption of property acquired by 4 796 
 
 Devise, exemption of property acquired by 4 796 
 
 Dividends, additional tax -. 1(6) 794 
 
 Estates, exemption 7(a) 800 
 
 Liability 2(5) 795 
 
 Exemptions 4 796 
 
 Claim of benefit of 9(6) 803 
 
 Personal 7(a) 799 
 
 Expenses, deduction 5(a), 6 797, 798 
 
 Federal farm loan bonds, exemption of interest oir. 4 796 
 
 Fiduciaries, returns by 8(c) 801 
 
 Foreign items, collection 9(/) 804 
 
 Gain from disposition of property, basis for determining. 2(c) 795 
 
 Gaswells, allowanceforreductioninflow 5(a), 6 797,799 
 
 Gifts, deduction 5 891 
 
 Exemption 4 796 
 
 Guardians, exemption on behalf of ward 7(a) 800 
 
 Head of family, exemption 7(a) 799 
 
 Husband and wife, exemption 7(a) 799 
 
 Illness, returns in case of 8(6), 9(6) 800,804 
 
 Improvements, deductions for 5(a), 6 797, 799 
 
 Information return 8(d), 9(6) 801, 802 
 
 Digitized by Microsoft® 
 
INDEX. 
 
 973 
 
 INCOME TAXES— Continued. 
 Act Septembers, 1916 — Continued. 
 
 Individuals — Continued. Section. 
 
 Interest, deduction 5(a), 6 
 
 Deduction of tax at source 9(c) 
 
 Delinquency in payment of tax. i 9(a) 
 
 Foreign corporations, etc., bonds, deduction of tax 
 
 from checks, etc . , in payment of .': 9((f ) 
 
 State, United States, etc., obligations, exemption. 4, 8(e) 
 
 Judges of Federal courts, exemption of compensation . . 4 
 
 Licenses, dealers in foreign securities, etc 9(/) 
 
 Life insurance, exemption of proceeds of policy 4 
 
 Local benefit assessments, deduction 5(a), 6 
 
 Losses, deduction 5(a), 6 
 
 Married persons, exemption 7(a) 
 
 Mines, depletion allowance 5(ffl)) 6 
 
 Net income, nonresidents, computation 6 
 
 Residents, computation 5 
 
 Nonresidents, deductions 6 
 
 Nonresident aliens, additional tax, rate 1(6) 
 
 Exemption 7(6) 
 
 Normal tax, rate 1(a) 
 
 Returns 6 
 
 Normal tax, credits 5(6, c) 
 
 Rate l(a, c) 
 
 Notice, assessments 9(o) 
 
 Claim of benefit of exemption 9(6) 
 
 Oil wells, allowance for reduction in flow 5(a), 6 
 
 Partnerships, liability 8(e) 
 
 Payment, fiduciaries, indemnity 2(6) 
 
 Owner of income 9(3) 
 
 Time 9(a) 
 
 Penalties, collecting foreign items without license 9(/) 
 
 Delinquency in payment of tax 9(a) 
 
 Personal exemption 7(a) 
 
 President of United States, exemption of compensation . 4 
 
 Refunds, exemptions where tax paid at source 9(6) 
 
 Residents, additional tax, rate 1(6) 
 
 Deductions 5(a) 
 
 Normal tax, rate 1(a) 
 
 Returns, absentees 8(6), 9(6) 
 
 Agents... .^ 8(6), 9(6^ 
 
 Basis Sig) 
 
 Commissioner to make, when 9(a) 
 
 Dividends 8(/) 
 
 Duty to file, etc 8(6), 9(9) 
 
 Fiduciaries 8(c) 
 
 Illness preventing making 8(6), 9(6) 
 
 Nonresident aliens 6 
 
 Exemption claim 7(6) 
 
 Owner of income 9{g) 
 
 Partnerships 8(e) 
 
 Source of income, deduction of normal tax 8{d),d(b-f) 
 
 States, exemption of interest on obligations of 4, 8(e) 
 
 OfRcersand employees, exemption of compensation. 4 
 
 Statement, profits and gains of corporations 3 
 
 Taxes, deduction 5(a), 6 
 
 Time, filing returns 8(6) 
 
 Trustees, exemption on behalf of cestui que trust 7(a) 
 
 Undistributed profits, additional tax 3 
 
 United States, exemption of interest on obligations of. . 4, 8(e) 
 
 Withholding tax at source 8(d), 9(6-/) 
 
 Information return, brokers 27 
 
 Dividend payments 26 
 
 Salaries, interest, etc., paid 28 
 
 Life insurance premiums on lives of employees, etc., de- 
 duction 32 
 
 Digitized by Microsoft® 
 
 Page. 
 
 797, 798 
 804 
 802 
 
 804 
 
 796, 801 
 796 
 804 
 796 
 
 797, 798 
 797-799 
 
 799 
 
 797, 799 
 798 
 797 
 798 
 794 
 800 
 794 
 892 
 798 
 
 793, 794 
 802 
 803 
 
 797, 799 
 801 
 795 
 805 
 802 
 805 
 802 
 799 
 796 
 803 
 794 
 797 
 794 
 
 800, 804 
 
 800. 804 
 802 
 802 
 802 
 
 800. 805 
 801 
 
 800, 804 
 
 892 
 
 800 
 
 805 
 
 802 
 
 801-804 
 
 796, 801 
 
 796 
 
 796 
 
 797, 798 
 
 800 
 
 800 
 
 796 
 
 796, 801 
 
 801-804 
 
 899 
 
 848 
 
 899 
 
 901 
 
974 
 
 INDEX. 
 
 INCOME TAXES— Continued. 
 
 Act September 8, 1916 — Continued. Section. 
 Notice to show cause why amount of return should not be 
 
 increased 19 
 
 Penalties, failure to file returns 18 
 
 False or fraudulent returns 18 
 
 Philippine Islands 23 
 
 Porto Rico !• 23 
 
 Profits or surplus from which distribution deemed made. .. 31(6) 
 
 Receipts 17 
 
 Repeal of act October 3, 1913 24 
 
 Returns 16 
 
 Penalty for failure to file 18 
 
 Verification 19 
 
 Revised Statutes, sections 3167, 3172, 3173, 3176, amended. . 16 
 
 Statistics 21 
 
 Witnesses, compelling attendance 20 
 
 Act October 3, 1913— 
 
 Absence from United States, returns in case of- 11(E) 
 
 Accumulated surplus, additional tax n( A-2) 
 
 Additional tax ., . . II(A-2) 
 
 Agricultural organizations, exemption II(G-a) 
 
 Amendment of Revised Statutes, sections 3167, 3172, 3173, 
 
 3176 11(1) 
 
 Annuity contracts, exemption of proceeds 11(B) 
 
 Appeal to Commissioner from decision of collector increas- 
 ing amount of income 11(D) 
 
 Appointment of officers, etc II(N) 
 
 Appropriation for expenses II(N) 
 
 Assessment insurance companies, deductions II(G-6) 
 
 Assessment of tax < Tltr-f'i 
 
 Laws applicable il(L) 
 
 Bad debts, deduction 11(B) 
 
 Beneficiary societies, exemption II(G-a) 
 
 Bequest, incopie from 11(B) 
 
 Betterments, deduction of amounts paid out for 11(B) 
 
 Bills of exchange in payment of interest on foreign bonds, 
 
 etc. , withholding tax 11(E) 
 
 Boards of trade, exemption II(6-o) 
 
 Bonds of United States, etc., taxability of interest on 11(B) 
 
 Building and loan associations, exemption II(Gr-«) 
 
 Business expenses and losses, deduction ■! TT/rij.^ 
 
 Business leagues, exemption II(G-a) 
 
 Cemetery companies, exemption II(G-a) 
 
 Chambers of commerce, exemption II(G-a) 
 
 Charitable organizations, exemption II(G-a) 
 
 Checks in payment of interest on foreign bonds, etc., 
 
 withholding tax 11(E) 
 
 Civic leagues, etc., exemption II(G-a) 
 
 Collection of tax at source 11(E) 
 
 Laws applicable II(L) 
 
 Compensation of President of the United States, taxability. 11(B) 
 
 Computation of tax, corporation II(G-c) 
 
 Individuals 11(D) 
 
 Time 11(D) 
 
 Corporations, deductions II(G-b) 
 
 Normal tax ' II(G-a) 
 
 Returns II(G-c,(fj 
 
 Coupons in payment of interest on foreign bonds, etc., 
 
 withholding tax 11(E) 
 
 Deductions, corporations _ II(G-6) 
 
 Foreign corporations II(G-&) 
 
 Fraudulent claim for exemption as affecting 11(E) 
 
 Individuals ..."... 11(B) 
 
 Page. 
 
 819 
 818 
 818 
 819 
 819 
 901 
 818 
 819 
 
 816, 817 
 818 
 819 
 
 815-818 
 819 
 819 
 
 740 
 731 
 731 
 743 
 
 751 
 733 
 
 738 
 755 
 755 
 747 
 738 
 750 
 754 
 733 
 743 
 732 
 734 
 
 740 
 743 
 734 
 743 
 733 
 744 
 743 
 743 
 743 
 743 
 
 740 
 743 
 738 
 754 
 735 
 747 
 735 
 735 
 744 
 742 
 747, 751 
 
 740 
 744 
 746 
 740 
 733 
 
 Digitized by Microsoft® 
 
INDEX. 975 
 
 INCOME TAXES--Continued. 
 
 Act October 3, 1918 — Continued. Section. Page. 
 
 Definition, income 11(B) 732 
 
 State 11(H) 751 
 
 UnitedStates 11(H) 751 
 
 Depletion allowance , II(G-6) 744 
 
 Depreciation allowance i u/CJil 744 
 
 Descent, income from property acquired by '. . . . VL(B) 732 
 
 Devise, income from 11(B) 732 
 
 District courts, jurisdiction to compel attendance of wit- 
 nesses, etc II(K,M) 754 
 
 District of Columbia, exemption of income from exercise of 
 
 governmental functions II(G-a) 743 
 
 Dividends, deductions '. 11(B) 734 
 
 Taxable corporations, returns as to 11(D) 737 
 
 T-bility { im ^34 
 
 Domestic building and loan associations, exemption II(G-a) 743 
 
 Educational organizations, exemption II(G-a) 743 
 
 Endowment contracts, exemption of proceeds II(B^ 733 
 
 Evidence, attempt to escape tax II(A-2) 732 
 
 Fraudulent purpose to escape tax II(A-2) 732 
 
 Exemption, claim of benefit of n(E) 739 
 
 Compensation of Federal judges 11(B) 735 
 
 President 11(B) 735 
 
 State officers 11(B) 735 
 
 Corporations II(G-a) 743 
 
 Interest on State, etc., bonds 11(3) 734 
 
 Married persons .^ j iim] 739 
 
 Exhaustion of property, allowance for n(B) 733 
 
 Expenses, deduction | ij/q_j| ^ 
 
 Federal court judges, taxability of compensation n(B) 735 
 
 Fiduciaries, returns II(D^ 735, 736 
 
 Fiscal year, designation II(G-c) 747 
 
 Time of payment of tax in case of II(G-c) 750 
 
 Foreign bonds, etc. , withholding tax on interest 11(E) 740 
 
 Foreign corporations, deductions II(G-6) 746 
 
 Normaltax II(G-a^ 742 
 
 Fraternal beneficiary societies, exemption II(G-fl) 743 
 
 Fraud, attempt to escape tax ■ II(A-2) 732 
 
 Claim for exemption n(E) 740 
 
 Gains constituting income 11(B) 732 
 
 Gifts, income from II(Bi 732 
 
 Holding companies, undistributed profits II(A-2) 731 
 
 Horticultural organizations, exemption II(G-a) 743 
 
 Husband and wife, exemptions i Ti}e> 730 
 
 Illness, returns in case of 11(E) 740 
 
 Improvements, deduction of amounts paid out for 11(B) 734 
 
 Income defined 11(B) 732 
 
 Infants, returns n(E) 740 
 
 Insane persons, returns 11(E) 740 
 
 Inspection of returns II(G-d) 751 
 
 I IKB) 733 
 
 Interest, deduction ■! jj((j_j\ y^5 
 
 Nonpayment of tax | jj|^^) ^38 
 
 Obligations of United States, etc 11(B) 734 
 
 Withholdicg tax on IICE) 740 
 
 Judges of Federal courts, taxability of compensation 11(B) 735 
 
 Jurisdiction to compel attendance of witnesses, etc II(K,M) 754 
 
 ' Labor organizations, cJiemption U (G-a) 743 
 
 License to engage in business of collecting foreign pay- 
 ments 11(E) 741 
 
 Digitized by Microsoft® 
 
745 
 749 
 
 976 INDEX. 
 
 INCOME TAXES— Continued. 
 
 Act October 3, 1813— Continued. Section. 
 
 Life insurance companies, gross income < ij/r^J, 
 
 Life insurance policies, exemption of proceeds 11(B) 733 
 
 Local benefit assessments, deduction 'II(B) 733 
 
 Lodges, exemption II(G-a) 743 
 
 lJ(C-b{ 744 
 
 Married persons, exemption i ii(v\) 739 
 
 Mines, depletion allowance I jj/c'il jaa 
 
 Minors, returns n(E)' 740 
 
 Mutual fire insurance companies, premium deposits i tt/pZ-n 740 
 
 Mutual marine insurance companies, gross income I i-jjcIa 74a 
 
 Mutual savings banks, exemption II(G-a) 743 
 
 Net income, definition 11(B) 732 
 
 Nonresidents, net income n(B) 734 
 
 Taxability II(A-l) 730 
 
 Normal tax II(A-l) 730 
 
 Deduction at source 11(E) 741 
 
 Domestic corporations - II(G-a) 742 
 
 Notice, amount of tax | tt/^J^\ 750 
 
 Claim of benefit of exemption n(E) 739 
 
 Close of fiscal year II(G-c) 747 
 
 To show cause why amount of return should not be in- 
 creased II(p) 738 
 
 Partnerships, liability | j//q":J\} 737, 742 
 
 Payment of tax, penalty for nonpayment 1 TT iT-r rfu '^'*^' "^^^ 
 
 Ti-^^ ; ; ; { llW3 738,750 
 
 Penalty, collecting foreign payments when unlicensed 11(E) 741 
 
 Delinquency in payment of tax 11(E) 738 
 
 False or fraudulent return jlKG-c^i)} ''^^> '^^^ 
 
 Fraudulent claim for exemption 11(E) 740 
 
 f 11(E) 738 
 
 Nonpayment of tax \ 11(F) 742 
 
 I II(G-c) 751 
 
 Refusal or neglect to make return / 11(F), 1 „ .„ „_, 
 
 \II(G-c,d); 74^751 
 Philippine Islands, exemption of income accruing to govern- 
 ment of II(G-a) 743 
 
 Provisions extended to II(M) 754 
 
 Porto Rico, exemption of income accruing to government of . n(G-a) 748 
 
 Provisions extended to II(M) 754 
 
 Premium deposits of mutual fire insurance companies II(G-6 r) 744, 748 
 
 President of the United States, taxability of compensation. . 11(B) 735 
 
 Profits constituting income 11(B) 732 
 
 Public utility, exemption of income from II(G-a) 743 
 
 Rate of tax II(A-l) 730 
 
 Additional tax II(A-2) 731 
 
 Receipts for taxes II(J) 754 
 
 Refund of tax, laws applicable II(L) 754 
 
 Regulations j jjY(^^]d 738, 751 
 
 Religious organizations, exemption 1 1(G-a) 743 
 
 Remission of tax, laws applicable n(L) 754 
 
 Repeal (Act Sept. 8, 1916) 24 820 
 
 Reserves of insurance companies, deduction lI(G-6) 744 
 
 Residents, liability II(A-l) 730 
 
 Digitized by Microsoft® 
 
INDEX. 977 
 
 INCOME TAXES—Oontinued. 
 
 Act October 3, 1913— Continued. Section. Page. 
 
 Returns, absentees « 11(E) 740 
 
 Additional tax II(A-2) 731 
 
 Agents n(D) 735 
 
 Commissioner to make, when / t JJa ^\1 738 750 
 
 I il((j-c)J ' 
 
 Contents / j^^^]j| 735, 747 
 
 Corporations - n(G-c, d) 747, 751 
 
 Dividends received from taxable corporations 11(D) 737 
 
 False or fraudulent IttJ^^^}{\- ^^.r.'^^h 
 
 \II(G-c, d)l 750, 751 
 
 Fiduciaries 11(D) 735 
 
 Filing with withholding agent 11(E) 739 
 
 Illness preventing making 11(E) 740 
 
 Insane persons n(E) 740 
 
 Inspection II(G-d) 751 
 
 Joint fiduciaries, etc n(P) 736 
 
 Minors 11(E) 740 
 
 Necessity | ij/^^jj 735, 747 
 
 Persons liable n(D) 735 
 
 Place of filing ■ | jij^^^^l 735, 747 
 
 Public records II(G-rf) ~ 751 
 
 Refusal or neglect to make {lI(G-fij} 750,^51 
 
 '^^^ { iK} 735,747 
 
 Transmission to Commissioner II(G-c, d) 750, 751 
 
 Understatement of income Il-(D) 738 
 
 Withholding agent 11(D) 736 
 
 Revised Statutes, sections 3167, 3172, 3173, 3170, amended. 11(1) 751 
 
 _ Scientific organizations, exemption II (G-o) 743 
 
 Social welfare organizationSj exemption lI(G-a) 743 
 
 States, bonds, taxability of interest on 11(B) 734 
 
 Employees andofficers, taxability of compensation HlB) 735 
 
 Exemption of income from exercise of governmental 
 
 functions II(G-a) 743 
 
 Statement, corporation- profits II(A-2) 732 
 
 Partnership profits 11(D) 737 
 
 Taxes paid, deduction | j/zq^M 733, 747 
 
 Territories, exemption of income from exercise of govern- 
 mental functions II(G-a) 743 
 
 Testimony, jurisdiction to compel attendance of witnesses, 
 
 etc II (K,M) 754 
 
 Time, computation of tax n(D) 735 
 
 Understatement of income ^(D^ 738 
 
 Undistributed profits, additional tax II(A-2) 731 
 
 United States bonds, taxability of interest on 11(B) 734 
 
 Wear and tear, allowance for i jjcq.jn} 733, 744 
 
 Withholding of tax | "^ij/e)} 
 
 Effect of requirement that collector make daily pay- 
 ments into Treasury (Act May 10, 1916) 
 
 Worthless debts, deduction 
 
 INDEMNITY. {See Sueett companies.) 
 
 Withholding agents (Act Feb. 24, 1919) 
 
 INDEMNITY BONDS— 
 
 Stamp taxes, exemption (Act Feb. 24, 1919) 
 
 Rate (Act Feb. 24, 1919) 
 
 140184°— 20 62 
 
 Digitized by Microsoft® 
 
 736, 739 
 
 11(B) 
 
 129 
 733 
 
 221 
 
 492 
 
 1101 
 
 554 
 557 
 
978 
 
 IHTDEX. 
 
 INDICTMENT AND INFORMATION— 
 
 Joinder of charges _. 
 
 Limitation on time for finding, etc / 
 
 National prohibition act, violation of (Act Oct. 28, 1919, 
 
 Title II) 
 
 INDXTSTBIAL ALCOHOL. {See National pbohibition.) 
 INDTTSTBIAL FAIRS— 
 
 Special tax (Act Feb. 24, 1919) 
 
 INFORMATION— 
 
 Concealment, penalty (Act Feb . 24, 1919) 
 
 Divulging by officers or employees 
 
 Inspection, corporation excise tax returns (Act Aug. 5, 
 
 1909) 
 
 (Act June 17, 1910) 
 
 Income tax returns (Act Feb. 24, 1919) 
 
 INFORMATION AT 80TJRCE— 
 
 Income taxes (Act Feb. 24, 1919) 
 
 INFORMERS— 
 
 1909) 
 
 {See LEaAciES and distributive 
 
 Extortion by IJAct Mar. 
 
 Rewards to 
 
 INHERITANCE TAXES. 
 
 SHARES.) 
 
 INJUNCTION— 
 
 Jm-isdiction of district court to issue to enforce revenue act 
 
 of 1918 (Act Feb. 24, 1919) 
 
 Kestraining assessment or collection of taxes 
 
 Liquor nuisanije (Act Oct. 28, 1919, Title II) 
 
 Violation of war prohibition act (Act Oct. 28, 1919, 
 
 Title I) - 
 
 Manufacture or sale of articles in violation of national 
 
 prohibition act (Act Oct. 28, 1919, Title II) 
 
 INSOLVENCY— 
 
 Banks, exemption from tax (Act Mar. 1, 1879) 
 
 Priority of United States in insolvent estates 
 
 Taxpayers, credit of collector with taxes of 
 
 INSPECTION— 
 
 Corporation excise tax returns (Act Aug. 5, 1909) 
 
 (Act June 17, 1910). 
 
 Distilled spirits bottled in bond (Act Mar. 3, 1897) 
 
 Distillers' books 
 
 Income tax returns (Act Feb . 24, 1919) 
 
 Munition manufacturer's returns (Act Sept, 8, 1916) 
 
 Opium order forms, statements,, etc (Act Dec. 17, 1914) 
 
 Premises on which child labor employed (Act Feb. 24, 
 
 1919) 
 
 TobaccO' peddler's certificate 
 
 INSPECTORS— 
 
 Entry upon premises where ^axable articles are kept 
 
 Leave of absence (Act Feb. 24, 1919) 
 
 Number allowed in commission (Act July 7, 1884) 
 
 Transfer J 
 
 (Act Aug. 15, 1876) 
 War prohibition act, investigation and report of violation 
 
 (Act Oct. 28, 1919, Title I) 
 
 Swearing out warrant against offenders against (Act 
 
 Oct. 28, 1919, Title I) 
 
 INSTALLMENT S— 
 
 Excess profits taxes, computation (Act Feb. 24, 1919) 
 
 Income' taxes, payment ....(Act Feb. 24, 1919) 
 
 ScetioQ. 
 1024 
 1047 
 
 32 
 
 1001(7) 
 
 Page. 
 
 145 
 3169 
 
 1318 
 
 3224 
 
 22 
 
 22 
 3466 
 3218 
 
 38{6) 
 
 2 
 
 3304 
 
 257 
 
 309 
 
 5,6 
 
 1206 
 3383 
 
 3177 
 1302 
 
 1 
 3163 
 
 1 
 
 328(6) 
 250 
 
 642 
 653 
 
 362 
 
 180 
 
 410 
 3167 
 
 532 
 '96 
 
 38(6) 
 
 726 
 728 
 
 257 
 
 510 
 
 254, 256 508, 509 
 
 677 
 98 
 
 631 
 144 
 358 
 
 348 
 
 351 
 
 580 
 685 
 136 
 
 726 
 728 
 293 
 261 
 510 
 830 
 422, 423 
 
 567 
 389 
 
 110 
 84 
 90 
 92 
 
 347 
 347 
 
 521 
 504 
 
 Digitized by Microsoft® 
 
INDEX. 979 
 
 mSURANCE- S,,,i„,. P,g, 
 
 Alcohol lost by leakage, etc. , effect (Act Oct. 28, 1919, Title 
 
 III) 14 368 
 
 Distilled spirits accidentally destroyed, effect 3223 144 
 
 (Act Dec. 20, 1879) 2 285 
 
 Estate tax, proceeds of policies (Act Feb. 24, 1919) 402 526 
 
 lucome taxes on companies, deductions. (Act Feb. 24, 1919) 234 500 
 
 Exemption (Act Feb. 24, 1919) 231 497 
 
 Losses not compensated for by insurance, deduction (Act 
 
 Feb. 24, 1919) 214,234 484,499 
 
 Stamp tax on poUcies, rate (Act Feb. 24, 1919) 561 
 
 INSTJKANCE TAX— 
 Act February 24, 1919— 
 
 Assessment 504 533 
 
 Credits, overpayments or overcollections 1310 629 
 
 Exemptions 503(d) 538 
 
 Interest, delinquency in payment of tax 504 538 
 
 Payment 504 538 
 
 Penalty, delinquency in payment of tax 504 538 
 
 Failure to pay, collect, etc., tax 1308 628 
 
 Policies taxable 503 537 
 
 Kate of tax, casualty insurance 503(c) 538 
 
 Fire insurance 503(6) 538 
 
 Life insurance 503(a) 537 
 
 Marine insurance 503 ( 6) 538 
 
 Reinsurance, exemption of policies 503(d) 538 
 
 Beturns, attestation 1309 629 
 
 Insurers 504 538 
 
 Time of payment of tax 504 538 
 
 Act October 3, 1917— 
 
 Exemption of reinsurance policies 504 872 
 
 Imposition 504 872 
 
 Payment 505 873 
 
 Rate , 504 872 
 
 Returns 505 872 
 
 INTEREST— 
 
 Bonds sued on. 963 649 
 
 Certificates of indebtedness, exemption from tax (Act July 
 
 9,1918) 3 583 
 
 (Act Mar. 3, 1919).. 4 586 
 
 Employment of child labor, deduction in computing tax 
 
 (Act Feb. 24, 1919) 1201 566 
 
 Estate tax, delay in payment (Act Feb. 24, 1919) 406, 407 530 
 
 Excise taxes, delinquency in payment. (Act Feb. 24, 1919) 903, 905 546, 548 
 
 Incomes taxes, credits (Act Feb . 24, 1919) 216, 236 487, 501 
 
 Deduction (Act Feb. 24, 1919){ ^14, 234, 484, 498, 
 
 Delinquency in payment (Act Feb . 24, 1919) 250 506 
 
 Federal securities and obligations, credits (Act Feb. 24, 
 
 1919) 216,236 487,501 
 
 GroBsincome (Act Feb. 24, 1919) 213 484 
 
 Information at source (Act Feb. 24, 1919) 256 509 
 
 Rate of deductions and withholding (Act Feb. 24, 1919) 237 502 
 
 Tax paid at source (Act Feb. 24, 1919) 221 491 
 
 Insurance tax, delinquency in payment. (Act Feb. 24, 1919) 504 538 
 
 Judgments 966 649 
 
 Liberty bonds, exemption from tax (Act Apr. 24, 1917) 1 581 
 
 (Act Sept. 24, 1917) 7 582 
 
 (Act Apr.- 5, 1818) 16 583 
 
 (Act July 9, 1918) 3 583 
 
 (AciSept, 24, 1918) 1 584 
 
 (Act Mar. 3, 1919) 585 
 
 Nonpayment of tax, in general | g^gg g^^g^ ^-^^ ' ^.^^ 
 
 Public money, neglect or refusal to account for 3624 666 
 
 Secretary of Treasuiy to allow, when (Act Mar. 3, 1875) 684 
 
 Digitized by Microsoft® 
 
980 
 
 IWDBX. 
 
 INTEBEST— Continued. 
 
 Transportation tax, delinquency in payment (Act Feb. 24,- 
 
 War Finance Corporation bonds, exemption from tax (Act 
 
 Apr. 5, 1918) 
 
 (Act July 9, 1918) 
 (Act Mar. 3, 1919) 
 INTERNAL REVENUE AGENTS— 
 
 Administi'ation of oaths 
 
 Authority 
 
 Chief, compensation (Act Apr. 17, 1900) 
 
 Compensation 
 
 (Act Apr. 17, 1900) 
 
 (Act Apr. 28, 1902) 
 
 (Act Feb. 3,1905) 
 
 Disclosures of information acquired in discharge of official 
 
 duties 
 
 Dismissal, guilt of specified crimes or misconduct as ground 
 
 for 
 
 Duties 
 
 Employment 
 
 (Act Apr. 28, 1902) 
 
 Leave of absence. (Act Feb. 24, 1919) 
 
 National prohibition act, appointment under (Act Oct. 28, 
 
 1919, Title II) 
 
 Number 
 
 (Act Apr. 28, 1902) 
 
 Per diem in lieu of subsistence (Act May 10, 1916) 
 
 Report of neglect of duty, etc., of officers or agents 
 
 Revised Statutes sections applicable to 
 
 War prohibition act, investigation and report of violation 
 
 (Act Oct. 28, 1919, Title I) 
 
 Swearing out warrant against offenders against (Act Oct. 
 
 28, 1919, Title I) 
 
 INTERNAL REVENTTE CLERKS AND EMPLOYEES. 
 
 {See Clerks and employees.) 
 INTERSTATE SHIPMENTS— 
 
 Liquor ; - (Act Mar. 4, 1909) 
 
 Transportation tax. {See Transportation tax.) 
 
 INTOXICATING LIQUOR. {See Distilled spirits; Fer- 
 mented liquors; National prohibition; Wines.) 
 
 Definition (Act Feb. 14, 1917) 
 
 INVENTORIES— 
 
 Cigar manufacturers 
 
 Pilled cheese manufacturers (Act June 6, 1896J 
 
 Income taxes, basis (Act Feb. 24, 1919) 
 
 Deduction of losses from reduction.. (Act Feb. 24, 1919) 
 
 Leaf tobacco dealers 
 
 Oleomargarine manufacturers (Act Aug. 2, 1886) 
 
 Search warrant, property taken under. .(Act June 15, 1917) 
 
 Smoking opium manufacturers (Act Jan. 17, 1914) 
 
 Snuff manufacturers 
 
 Tobacco manufacturers 
 
 White phosphorous match manufacturers .(Act Apr. 9, 1912) 
 INVESTED CAPITAL— 
 
 Excess profits tax purposes. (See Excess PEoriTs taxes.) 
 IRRIGATION COMPANIES— 
 
 Income taxes, exemption (Act Feb. 24, 1919) 
 
 J. 
 JEWELRY— 
 
 Excise taxes (Act Feb. 24, 1919) 
 
 JOINT FIDUCIARIES- 
 
 Income tax returns (Act Feb . 24, 1919) 
 
 Digitized by Microsoft® 
 
 Section: 
 
 Pa^e. 
 
 502 
 
 5C6 
 
 16 
 
 583 
 
 3 
 
 583 
 
 4 
 
 586 
 
 3165 
 
 95 
 
 3152 
 
 81 
 
 1 
 
 83 
 
 3152 
 
 81 
 
 1 
 
 83 
 
 1 
 
 82 
 
 1 
 
 84 
 
 3167 
 
 96 
 
 3169 
 
 98 
 
 3152 
 
 81 
 
 3152 
 
 81 
 
 1 
 
 82 
 
 1302 
 
 84 
 
 38 
 
 365 
 
 3152 
 
 81 
 
 1 
 
 82 
 
 1 
 
 84 
 
 3163 
 
 92 
 
 3152 
 
 81 
 
 2 
 
 347 
 
 2 
 
 347 
 
 238-240 
 
 231 
 
 905 
 
 225 
 
 681 
 
 185 
 
 3390 
 
 397 
 
 5 
 
 445 
 
 203 
 
 476 
 
 234 
 
 500 
 
 3360 
 
 377 
 
 5 
 
 431 
 
 13, 14, 17 
 
 603, 604 
 
 2 
 
 413 
 
 3358 
 
 374 
 
 3358 
 
 374 
 
 2 
 
 457 
 
 497 - 
 
 547 
 494 
 

 684 
 
 916, 986 
 
 647,648 
 
 966 
 
 649 
 
 3169 
 
 98 
 
 1,2 
 
 648 
 
 3216 
 
 135 
 
 989 
 
 654 
 
 957 
 
 672 
 
 1,2 
 
 648 
 
 INDEX. 981 
 
 JOINT TENANCY— Section. Tago. 
 
 Estate tax, gross estate (Act Feb . 24, 1919) 402 526 
 
 JtTDGES— 
 
 Income taxes, salaries ■ (Act Feb . 24, 1919) 213(a) 481 
 
 JUDGMENTS— 
 
 Appeal. {See Appeals.) 
 
 Costs, defendant's liability 974 646 
 
 Debt due United States, deduction from judgment (Act 
 Mar. 3, 1875) 
 
 Execution 
 
 Interest 
 
 Internal revenue officer or agent, unauthorized compro- 
 mises, etc 
 
 Liens (Act Aug. 1, 1888) 
 
 Payment to collectors 
 
 Probable cause, collector's liability in case of 
 
 Public money, person accountable for 
 
 Records (Act Aug. 1, 1888) 
 
 JtTDICIAIi DISTRICTS. (-See District attorneys; Dis- 
 trict COURTS.) 
 
 Arrest of person in one for trial in another (Act Mar. 3,1911) 51 639 
 
 Offenses begun in one and completed in another (Act Mar. 3, 
 1911) 
 
 Removal of offenders to district where trial to be had. . . . 
 JUDICIAL SALES— 
 
 Chancery to decree, when 
 
 Distilled spirits 3334, 3458 
 
 Personal property, for taxes (Act Mar. 3, 1893) 
 
 Real estate, for taxes.'. 3196-3205 
 
 (Act Mar. 3, 1893) 
 
 Tobacco, etc "369, 
 
 JUEISDICTION— 
 
 Compelling production of testimony, etc. (Act Feb. 24, 1919) 
 
 Damages, actions against officers for 
 
 Deputy collector's bonds, actions on (ActFeb. 8, 1875> 
 
 District courts (Act Mar. 3, 1911) 
 
 Compelling attendance of witnesses, etc. (Act Feb. 24, 
 
 1919) 
 
 ' Original proceedings (Act Mar. 3, 1911) 
 
 Exclusive, United- States courts (Act Mar. 3, 1911) 
 
 Intoxicated person, action for injuries caused by (Act Oct. 
 28, 1919, Title II) 1 
 
 Liquor nuisance, action to enjoin (Act Oct. 28, 1919, 
 Title II) 
 
 Offense committed in one district and completed in 
 another (Act Mar. 3, 1911) 
 
 Removal of causes from State courts to United States 
 courts (Act Mar. 3, 1911) 
 
 Suits for taxes, penalties, fines, etc 
 
 Surety companies, suits against (Act Aug. 13, 1894) 
 
 Taxes, suits for '...(ActMar. 3, 1911) 
 
 War prohibition act, enjoining violators of (Act Oct. 28, 1919, 
 Titlel) 4 348 
 
 LABELS— 
 
 Adulterated butter (Act May 9, 1902) 
 
 Cigar boxes 
 
 (Act Feb. 24, 1919) 
 
 Filled cheese (Act June 6, 1896) 
 
 Liquor containers (Act Oct. 28, 1919, Title II) 
 
 Mixed flour (Act June 13, 1898) 
 
 Oleomargarine (Act i.ug. 2^ 1886) 
 
 42 
 1014 
 
 638 
 642 
 
 3207 
 3458 
 2 
 -3205 
 1,3 
 3458 
 
 127 
 288, 598 
 
 125 
 122-127 
 124, 125 
 383, 598 
 
 1318 
 
 3171 
 
 12 
 
 24 
 
 110, 631 
 
 101 
 
 76 
 
 635 
 
 1318 
 
 51 
 
 256 
 
 631 
 639 
 637 
 
 20 
 
 357 
 
 22 
 
 358 
 
 42 
 
 638 
 
 33 
 
 3213 
 
 5 
 
 44 
 
 640 
 132 
 614 
 638 
 
 4 
 
 440 
 
 3393 
 
 400 
 
 700 
 
 402 
 
 8 
 
 ■447 
 
 12 
 
 356 
 
 39,40 
 
 452, 453 
 
 7 
 
 433 
 
 Digitized by Microsoft® 
 
982 
 
 INDEX. 
 
 LABELS— Continued . 
 
 Snuff: 
 
 Tobacco 
 
 White phosphorous matches (Act Apr. 9, 1912) 
 
 LABOR 0B.GANIZAT3:0NS— 
 
 Corporation excise tax, exemption (Act Aug. 5, 1909) 
 
 Income taxes, exemption (Act Feb. 24, 1919) 
 
 LAGER BEER. (See Fermented li(juoe.s.) 
 LARCENY— 
 
 Income taxes, deduction of losses through theft (Act Feb. 
 
 24, 1919) 
 
 United States property (Act Mar. 4, 1909) 
 
 LEAF TOBACCO. {See Tobacco.) 
 LEASES— 
 
 Excise tax on articles leased. {See Excise taxes.) 
 
 False statement as to tax in connection with (Act Feb . 24, 
 
 1919) 
 
 Forfeiture in case of liquor nuisance (Act Oct. 28, 1919, 
 
 Title II) 
 
 Income taxes, deduction lor depletion, etc. (Act Feb. 24, 
 
 1919) 
 
 Real estate acqmred by United States 
 
 Theaters.special tax (Act Feb. 24, 1919) 
 
 War prohibition act, forfeiture of lease to property used in 
 
 violation of (Act Oct. 28, 1919, Title I) 
 
 LEAVE OF ABSENCE— 
 
 Gangers (Act June 23, 1910) 
 
 Grant of (Act Mar. 15,. 1898) 
 
 Holidays, exclusion. (Act Feb. 24, 1899) 
 
 Inspectors .(Act Feb. 24, 1919) 
 
 Internal revenue agents. . . . '. (Act Feb. 24, 1919) 
 
 Storekeepers (Act June 23, 1910) 
 
 Storekeeper-gaugers (Act June 23, 1910) 
 
 LECTURE LYCEXraiS— 
 
 Special tax (Act Feb. 24, 1919) 1001(7) 
 
 LEGACIES AND DISTRIBXTTIVE SHARES— 
 
 Assessment by collector on failure of executor, etc. (Act Apr. 
 
 12., 1902) 8 
 
 Charitable, etc . , uses, deduction for estate tax purposes (Act 
 
 Feb. 24, 1919) , 403 
 
 Refund of tax on legacy or bequest for (Act June 27, 
 
 1902) 
 
 (Act July 27, 1912) 
 Contingent beneficial interest, tax on. . .(Act June 27, 1902) 
 Deductions from particular legacies. . ..(Act Apr. 12, 1902) 
 Educational purposes, refund of tax on- legacy or bequest 
 
 for (Act June 27, 1902) 
 
 (Act July 27, 1912) 
 
 Exhibition of papers, etc (Act Apr. 12, 1902 
 
 Income taxes, exemption. .'. .(Act Feb. 24, 1919 
 
 Legal proceedings to recover tax (Act Apr. 12, 1902 
 
 Liberty bonds, nrfitloan, exemption /Act Apr. 24, 1917 
 
 Second loan, exemj)tion (Act Sept. S4, 1917| 
 
 Third loan, exemption (Act Apr. 4, 1918^ 
 
 Victory loan, exemption (Act Mar. 3, 1919' 
 
 Lien on testator's property (Act Apr. 12, 1902^ 
 
 Literary purposes, refund of tax on legacy or bequest for 
 
 (Act June 27, 1902) 
 
 (Act July 27, 1912; 
 
 Notice by executor (Act Apr. 12, 1902 
 
 Payment (Act Apr. 12, 1902^ 
 
 Acceptance of United States bonds. (Act Apr. 4, 1918] 
 
 Penalty, negligence, etc., of ^ecutor. . .(Act Apr. 12, 1902' 
 
 Refusal to exhibit papers (Act Apr. 12, 1902 
 
 Digitized by Microsoft® 
 
 Section. 
 
 Page. 
 
 3364 
 
 3364 
 
 12 
 
 380 
 380 
 460 
 
 38(1) 
 231 
 
 711 
 496 
 
 214 
 46 
 
 484 
 679 
 
 1319 
 
 632 
 
 23 
 
 359 
 
 214, 234 
 
 3208 
 
 1001(5) 
 
 485, 499 
 128 
 180 
 
 3 
 
 347 
 
 
 90 
 
 7 
 
 4 
 
 1302 
 
 1302 
 
 64 
 65 
 84 
 84 
 90 
 
 
 90 
 
 180 
 
 706 
 
 528 
 
 708 
 710 
 
 1 3 
 
 708 
 
 8 
 
 706 
 
 
 708 
 
 
 710 
 
 1 8 
 
 70G 
 
 • 213(6) 
 
 482 
 
 1 8 
 
 706 
 
 1 1 
 
 581 
 
 1 7 
 
 581 
 
 1 3 
 
 583 
 
 i 1 
 
 585 
 
 1 8 
 
 705 
 
 
 708 
 
 1 
 
 710 
 
 705 
 705 
 710 
 706 
 706 
 
INDEX. 
 
 983 
 
 LEGACIES AND DI^TRIBXTTIVE SHARES— Cont'd. 
 
 Receipts for taxes (Act Apr. 12, 1902) 
 
 Recital in deed, effect (Act Apr. 12, 1952) 
 
 Refund of taxes on legacies or bequests for charitable, etc., 
 
 uses (Act June 27, 1902). 
 
 (Act July 27, 1912). 
 Religious purposes, refund of tax on legacy or bequest for 
 
 (Act June 27, 1902) 
 
 (Act July 27, 1912). 
 
 Repeal of tax, saving clause (Act Apr. 12, 1902) 
 
 Schedules, etc (Act Apr. 12, 1902) 
 
 Title vested in purchaser, etc (Act Apr. 12, 1902) 
 
 United States bonds, acceptance in payment of tax (Act 
 
 Apr..4, 1918) : 
 
 War Finance Corporation bonds, exemption (Act Apr. 5, 
 
 LEGAL BEPBESENTATIVES. (See Executors.) 
 LEGISLATION— 
 
 Internal revenue laws 
 
 LIBERTY BONDS— 
 
 Exemption from tax, first loan (Act Apr. 24, 1917) 
 
 Second loan (Act Sept. 24, 1917) 
 
 (ActSept. 24, 1918) 
 (Act Mar. 3, 1919) 
 
 Thirdloan (Act Apr. 4, 1918) 
 
 Fourth loan (Aot July 9, 1918) 
 
 Victory loan (Act Mar. 3, 1919) 
 
 Interest, exemption from tax (Act Apr. 24, 1917) 
 
 (Act Sept. 24, 1917) 
 (Act Apr. 5, 1918) 
 (Act July 9, 1918) 
 (Act Sept. 24, 1918) 
 (Act Mar. 8, 1919) 
 
 Surety bonds, deposit in lieu of (Act Feb. 24, 1919) 
 
 LICENSES— 
 
 Collection of foreign items. (Act Feb . 24, 1919) 
 
 Excise tax, motion-picture films Ucensed for exhibition 
 
 (Act Feb. 24, 1919) 
 
 LIENS— 
 
 'Alcohol, tax on (Act Oct. 28, 1919, Title III) 
 
 Distilled spirits, tax on 
 
 (Act Jan. 8, 1874) 
 
 Distillers, assessments for deficiencies 
 
 Distillery premises, apparatus, etc 
 
 Enforcement of, on real estate 
 
 Estate taxes (Act Feb. 24, 1919) 
 
 Intoxicating liquor, vehicle, etc., used in transporting (Act 
 
 Oct. 28, 1919, Title II) 
 
 Judgments (ActAug. 1, 1888) 
 
 Legacy, etc., tax (Act Apr. 12, 1902) 
 
 Liquor nuisance, penalty for maintaining (Act Oct. 28, 
 
 1919, Title II) 
 
 Taxes unpaid after demand 
 
 War prohibition act, property used in violation of, for fines, 
 
 etc (Act Oct. 28, 1919, Title I) 
 
 LIFE INStJRANCE. {See Instjrance tax.) 
 
 Companies, income taxes, deductions... (Act Feb. 24, 1919) 
 
 Income taxes, gross income (Act Feb. 24, 1919) 
 
 Estate tax, gross estate (Act Feb. 24, 1919) 
 
 Reimbursement of executor for tax paid on proceeds 
 
 of policy (Act Feb. 24, 1919) 
 
 Income taxes, deduction of premiums paid (Act Feb. 24, 
 
 1919) 
 
 Gross income, premiums paid by beneficiaries (Act 
 
 Feb. 24, 1919) 
 
 Proceeds of poB)t^Uzed-by M/6^feS')?'®24, 1919) 
 
 Section, 
 
 Page. 
 
 16 
 
 705 
 706 
 
 708 
 710 
 
 708 
 710 
 705 
 705 
 706 
 
 710 
 
 583 
 
 27 
 
 1 1 
 
 581 
 
 1 7 
 
 581 
 
 1 1 
 
 584 
 
 1 1 
 
 • 584 
 
 ' . 3 
 
 582 
 
 1 3 
 
 583 
 
 1 1,2,4 
 
 584-586 
 
 1 
 
 581 
 
 7 
 
 582 
 
 16 
 
 583 
 
 3 
 
 583 
 
 1 
 
 584 
 
 
 5S5 
 
 1320 
 
 615 
 
 259 
 
 510 
 
 901, 906 
 
 545, 548 
 
 i 5 
 
 366 
 
 3251 
 
 192 
 
 \.. 
 
 223 
 
 3309 
 
 263 
 
 3260 
 
 211 
 
 3207 
 
 127 
 
 409 
 
 531 
 
 26 
 
 360 
 
 1,2 
 
 648 
 
 8 
 
 705 
 
 21 
 
 358 
 
 3186 
 
 118 
 
 3 
 
 347 
 
 234 
 
 500 
 
 233 
 
 497 
 
 402 
 
 526 
 
 408 
 
 530 
 
 215 
 
 487 
 
 213 
 
 482 
 
 213 
 
 482 
 
984 
 
 INDEX. 
 
 LIMITATIONS— 
 
 Appeal or writ of error to Circuit Court of Appeals (Act Mar. 
 
 3, 1891) , 
 
 Supreme Court 
 
 (Act Mar. 3, 1911) 
 (Act Sept. 6, 1916) 
 
 Claims against United States (Act Mar. 3, 1911) 
 
 Commissioner, decision in case of appeals 
 
 Power of assessment in case of omission, etc 
 
 Income taxes, suits for recoveries, etc.. .(Act Feb. 24, 1919) 
 Official bonds, suits against obligors for deficiencies of 
 
 principals (Act Aug. 8, 1888) 
 
 Prosecution for violating revenue laws 
 
 (Act July 5, 1884). 
 
 Recovery of taxes, etc., erroneously collected ^ . . . 
 
 Redemption of stamps (Act May 12, 1900) 
 
 Refunds, filing claims 
 
 lilQUORS. {See Distilled spirits; Fermented liquors; 
 National pkohibition; .Wines.) 
 Alaska, officers charged with duty of enforcing liquor law 
 
 (Act Feb. 14, 1917) 
 
 Sales prohibited (Act Feb. 14, 1917) 
 
 Definition (Act Feb. 14, 1917) 
 
 Special tax, dealers 
 
 ■ (Act Feb. 8, 1875) 
 (Act Feb. 24, 1919) 
 LISTS— 
 
 Acts of Congress relating to internal revenue 
 
 Annual, monthly, and special 
 
 Assessments^ certification by Commissioner 
 
 Collection districts ■ : 
 
 Collectors charged with 
 
 Nonresidents' property 
 
 Persons and -objects liable to pay tax 
 
 Section. 
 
 11 
 
 1008 
 
 243 
 
 6 
 
 24 
 
 3226 
 
 3182 
 
 250 
 
 1046, 1047 
 
 Page. 
 
 3227 
 
 1 
 
 3228 
 
 27 
 
 1,26 
 
 1 
 
 3244| 
 
 16 
 1001(12) 
 
 3173,3181 
 3182 
 
 Regulations , 
 
 Special taxes, names of those paying 
 
 Taxpayer required to file 
 
 Duty of collector or deputy in case of delinquency 
 
 Transfer by collector to successor where uncollected 
 
 Transmission to district Vhere person liable resides or has 
 
 property 
 
 LITERARY ORGANIZATIONS— 
 
 Estate tax, deduction of gifts for literary purposes (Act 
 
 Feb. 24, 1919) 
 
 Refund of tax on legacy or bequest for literary purpose 
 
 (Act June 27, 1902) 
 
 (Act July 27, 1912). 
 
 Stamp tax, proxies for voting (Act Feb . 24, 1919) . 
 
 LIVE-STOCK— 
 
 Distraint, exemption 
 
 LOAN ASSOCIATIONS. {See Building and loan associa- 
 tions.) 
 LOCATION— 
 
 Collectors' offices 
 
 LODGES— 
 
 Dues, exemption from tax (Act Feb. 24, 1919) 
 
 Income taxes, exemption (Act Feb. 24, 1919) 
 
 3218 
 
 3180 
 
 8172 
 
 3180,3181 
 
 3240 
 3173 
 3176 
 3219 
 
 3209 
 
 403 
 
 3187 
 
 650 
 652 
 652 
 651 
 636 
 146 
 112 
 506 
 
 618 
 653 
 653 
 147 
 552 
 148 
 
 185 
 185 
 185 
 166, 170, 
 171 
 160 
 181 
 
 27 
 
 104, 111 
 
 112 
 
 47 
 136 
 111 
 104 
 111 
 
 49 
 157 
 104 
 108 
 137 
 
 129 
 
 527 
 
 708 
 710 
 560 
 
 119 
 
 801 
 231 
 
 47 
 
 541 
 496 
 
 Digitized by Microsoft® 
 
INDEX. 
 
 985 
 
 LOSSES— 
 
 Distilled spirits, allowance for (Act Aug. 27, 1894) 
 
 (Act Mar. 3, 1899) 
 
 (Act Jan. 13, 1903) 
 
 During transportation, allowa,nce for (Act Dec. 20, 
 
 1879) 
 
 Spirits bottled in bond (Act Mar. 3, 1897) 
 
 In warehouse 
 
 Unavoidable cause [ 3221-3223 
 
 (Act Feb. 24, 1919) 
 Employment of child labor, deduction in computing tax 
 
 (Act Feb. 24, 1919) 
 
 Estate tax, deductions (Act Feb. 24, 1919) 
 
 Income taxes, deductions (Act Feb . 24, 1919) 
 
 LOTTEBIES— 
 
 Tickets in cigar or cigarette packages 
 
 LUXUBIES— 
 
 Excise taxes (Act Feb. 24, 1919) 
 
 Section. 
 
 Pago. 
 
 50 
 
 244 
 
 1,2 
 
 245, 246 
 
 
 247 
 
 1,2 
 
 285 
 
 4 
 
 294 
 
 3293 
 
 239 
 
 3221-3223 
 
 142-144 
 
 600 
 
 193 
 
 1201 
 
 566 
 
 403 
 
 527 
 
 214, 234 
 
 484, 499 
 
 3394 
 
 904 
 
 M. ' 
 
 MAIIr-' 
 
 Government matter, postage (Act Mar. 3, 1877) 
 
 Notice to pay taxes. 
 
 Render list or return of objects liable to tax 
 
 Show cause why articles should not be considered intox- 
 icating liquor (Act Oct. 28, 1919, Title II) 
 
 Parcel post packages, stamp taxes (Act Feb. 24, 1919) 
 
 Stamps, transmission to officers of internal revenue service 
 
 (Act Aug. 15, 1876) 
 
 MALT LIQUORS. (See Fermented liqtjors.) 
 
 Special tax on dealers 
 
 (Act Feb. 24, 1919) 
 
 Carrjdng on business without paying tax 
 
 (Act Feb-. 8, 1875) 
 M ANTJP ACTTTREB S— 
 
 Child labor, tax on employment. {See Child laboe.) 
 Particular articles. (See specific heads.) 
 Special occupational tax. (See Occupational taxes.) 
 MARINE INStJRANCE. (See Insukance tax.) 
 
 Companies, income taxes, deduction. . .(Act Feb. 24, 1919) 
 
 Income taxes, gross income (Act Feb. 24, 1919) 
 
 MARSHALS— 
 
 Accepting gifts, etc., for settlement of violation of laws 
 
 Arrest, duty on making (Act Aug. 18, 1894) . 
 
 Deputy, appointment (Act Oct. 22, 1913) 
 
 Bonds (Act Oct. 22, 1913) 
 
 Distraint proceedings against delinquent collectors 
 
 Fees, collection, etc (Act May 28, 1896) 
 
 Regulations governing, duty of Commissioner 
 
 Seized goods, duties with reference to 
 
 MATCHES. (See White phosphorous matches.) 
 MEDICINAL PBEPABATIONS— 
 
 Alcohol, drawback where used in articles exported (Act Oct. 
 
 3 1913) 
 
 Excise tax'.'.'.'.'. '. '. '. '. '. '. '. '. '. '. '. '. '. - '.'.'.-'-- i . ". (Act Feb . 24, 1919) 
 Liquor, purchase and use for medicinal purposes (Act Oct. 
 
 28, 1919, Title II) 
 
 National prohibition act, exception from operation of (Act 
 
 Oct. 28, 1919, Title II) 
 
 Opium. (See Opium.) 
 
 Special tax, apothecaries 
 
 401 
 
 546 
 
 3184 
 3173 
 
 116 
 104 
 
 5 
 1102 
 
 352 
 , 555, 561 
 
 1 
 
 590 
 
 3244(5) 
 
 1001(12) 
 
 3242 
 
 16 
 
 170 
 181 
 159 
 
 160,228 
 
 234 
 233 
 
 500 
 <98 
 
 3170 
 
 101 
 660 
 
 1 
 
 1 
 
 3217 
 
 5 
 
 3215 
 
 3459 
 
 78 
 78 
 135 
 G61 
 134 
 598 
 
 IV(0) 
 907 
 
 GU 
 549 
 
 6 
 
 353 
 
 4 
 
 351 
 
 3246 
 
 176 
 
 Digitized by Microsoft® 
 
986 
 
 INDEX. 
 
 MILEAGE— 
 
 Clerks or employees. 
 
 (Act June 16, 1874). 
 {See Army and Navy.) 
 
 Section. 
 850 
 
 Page. 
 
 MILITARY FORCES 
 MINES— 
 
 Child labor, tax on employment. {See Child laboe.j 
 Distilled spirits, prohibitory zones about coal mines (Act 
 
 Nov. 21, 1918) 
 
 Excess profits tax, exemption of income from gold mining 
 (Act Feb . 24, 1919) 
 
 Rate in case of sale (Act Feb. 24, 1919) 
 
 Income taxes, depletion and depreciation allowance (Act 
 Feb. 24, 1919 
 
 Surtax rate in case of bona fide sale. . (Act Feb . 24, 1919) 
 MIXED FLOTTR (Act June 13, 1898)— 
 
 Assessment of stamp tax 
 
 " Branding 
 
 Cards in packages 
 
 Date act effective 
 
 Definition 
 
 Destruction of stamps 
 
 Empty packages 
 
 Exports 
 
 Forfeitures _. . 
 
 Imports 
 
 Labels 
 
 Marking 
 
 Exports , 
 
 Packages, amoupt of contents 
 
 Character : 
 
 Marks and brands , 
 
 Penalties, failure to affix required labels 
 
 Failure to destroy stamps on empty packages 
 
 Failure to mark or brand, etc., packages as required 
 
 Purchasing, etc., flour not properly stemped, etc 
 
 Recovery 
 
 Second or subsequent offenses : . 
 
 Special tax, purchasing flour from one who has not paid . 
 
 "Violation of provisions as to contents of packages, etc. . 
 
 Rate of tax 
 
 Regulations 
 
 Repacked flour 
 
 Special tax, manufacturer, etc 
 
 Purchasing flour from one who has not paid 
 
 Starnps 
 
 Empty packages, destruction 
 
 Imported flours 
 
 MONEYS. {See Public moneys.) 
 MONTHLY RETURNS— 
 
 Admissions tax (Act Feb. 24, 1919) 
 
 Banks and bankers 
 
 Dues, tax on (Act Feb. 24, 1919) 
 
 Excise taxes. /. (Act Feb . 24, 1919)| 
 
 Insurance tax (Act Feb. 24, 1919) 
 
 Time for making 
 
 Transportetion tax .(Act Feb. 24, 1919) 
 
 MORTGAGES— 
 
 Distillery premises, etc 
 
 Estate tax, deduction (Act Feb. 24, 1919) 
 
 Stamp tax on mortgage guarantee policies (Act Feb . 24, 1919) 
 MOTION PICTURES— 
 
 Excise tax on films, computation (Act Feb . 24, 1919) 
 
 Leasing or licensing for exhibition . . (Act Feb . 24, 1919) 
 
 Digitized by Microsoft® 
 
 701 
 701 
 
 205 
 
 304'(c) 
 
 516 
 
 337 
 
 524 
 
 214, 234 
 
 485, 499 
 
 211 
 
 481 
 
 41 
 
 453 
 
 37,38 
 
 452 
 
 37 
 
 452 
 
 49 
 
 455 
 
 35 
 
 451 
 
 40. 
 
 453 
 
 45 
 
 454 
 
 44 
 
 454 
 
 46 
 
 454 
 
 42 
 
 454 
 
 39,40 
 
 452, 453 
 
 37,38 
 
 452 
 
 44 
 
 454 
 
 40 
 
 453 
 
 38 
 
 452 
 
 37 
 
 452 
 
 39 
 
 452 
 
 45 
 
 454 
 
 37 
 
 452 
 
 42 
 
 454 
 
 46 
 
 454 
 
 48 
 
 455 
 
 43 
 
 454 
 
 40 
 
 453 
 
 40 
 
 453 
 
 47 
 
 454 
 
 40 
 
 453 
 
 36 
 
 176, 451 
 
 43 
 
 454 
 
 40 
 
 453 
 
 45 
 
 454 
 
 42 
 
 454 
 
 802 
 
 541 
 
 3414 
 
 579 
 
 802 
 
 541 
 
 f 903-905,1 
 I 907(6)/ 
 
 546-549 
 
 504 
 
 538 
 
 3185 
 
 117 
 
 502 
 
 536 
 
 3260, 3262 
 
 211, 215 
 
 403 
 
 527 
 
 
 557 
 
 901 
 
 545 
 
 901, 906 
 
 545, 548 
 
INDEX. 987 
 
 MOTOR BOATS— Section. rage. 
 
 Excise taxes (Act Feb. 24, 1919) 900(20) 544 
 
 Special tax on use of (Act Feb . 24, 1919) 1003 183 
 
 Transportation tax. {See Teanspobtation Tax.) 
 MOTOR VEHICLES— 
 
 Excise tax (Act Feb. 24, 1919) 900(1-3) 543 
 
 Special tax on operation or renting of passenger automo- 
 biles (Act Feb. 24, 1919) 1001(11) 181 
 
 Transportation tax. (See Teanspoetation Tax.) 
 MUNICIPAL CORPORATIONS— 
 
 Admissions tax, municipal officers admitted free (Act Feb. 
 
 24, 1919) 800(a) 539 
 
 Bonds, exemption from stamp tax (Act Feb. 24, 1919) 1101 554 
 
 Income taxes, exemption of compensation of officers and 
 
 employees.. (Act Feb. 24, 1919) 213(a) 481 
 
 Income accruing from exercise of governmental func- 
 tions (Act Feb. 24, 1919) 213(6) 483 
 
 MUNITION MANUFACTURER'S TAX (Act Sept. 8, 
 1916)— 
 
 Amortization allowance 302 828 
 
 Application of earlier laws ' 311 830 
 
 Appropriation for collecting (Act July 3, 1918) 1 57 
 
 Assessment 305, 306 827 
 
 Compensation ot-employees, deduction 302 828 
 
 Cost of raw materials, deduction 302 828 
 
 "Deductions, computation of net profits 302 828 
 
 Definitions, person 300 827 
 
 Taxable year '. 300 827 
 
 United States 300 827 
 
 Earlier laws, application 311 830 
 
 Examination of Dooks, accounts, etc 308 830 
 
 Expenses, deduction 302 828 
 
 Gross amount received for munitions deemed to be what. . . 303 829 
 
 Hearing, increase of assessment by Commissioner 306 827 
 
 Insurance, deduction 302 828 
 
 Interest, deduction 302 828 
 
 Limitation 301(2) 828 
 
 Losses, deduction 302 828 
 
 Net profits, computation 302 828 
 
 Notice, amount of tax 305, 306 827 
 
 Penalties 310 830 
 
 Persons liable 301(1) 827 
 
 On whom tax assessed 307 830 
 
 Rate 301(1) 827 
 
 Regulations 312 830 
 
 Rentals, deduction 302 828 
 
 Repairs, deduction of cost 302 828 
 
 Returns, contents, etc 304 829 
 
 Review by Commissioner 306 829 
 
 Secrecy 309 830 
 
 Transmission to Commissioner 305 829 
 
 Running expenses, deduction 302 828 
 
 Taxes, deduction ,. 302 828 
 
 MUSICAL INSTRUMENTS— 
 
 Excise tax (Act Feb. 24, 1919) 900(4) 543 
 
 MUTUAL DITCH OR IRRIGATION COMPANIES— 
 
 Income taxes, exemption (Act Feb. 24, 1919) 231 497 
 
 MUTUAL INSURANCE COMPANIES— 
 
 Income taxes, deductions (Act Feb . 24, 1919) 234 500 
 
 Exemption (Act Feb. 24, 1919) 231 497 
 
 Gross income of mutual marine insurance com- 
 panies (Act Eeb. 24, 1919) 283 498 
 
 Digitized by Microsoft® 
 
988 INDEX. 
 
 MUTUAL SAVINGS BANKS— Eectlon. rage. 
 
 Income taxes, exemption (Act Feb. 24, 1919) 231 496 
 
 MUTUAL TELEPHONE COMPANIES— 
 
 Income taxes, exemption (Act Feb. 24, 1919) 231 497 
 
 N. 
 NAMES— 
 
 Trade name, removing liquor under name other than 3449 591 
 
 NARCOTICS. (See Opium.) 
 
 Appropriation for expenses to enforce law restricting 
 
 sale (Act July 3, 1918) 1 57 
 
 NATIONAL BANKS. (See Banks and bankers.) 
 NATIONAL FARM LOAN ASSOCIATIONS— 
 
 Income taxes, exemption (Act Feb. 24, 1919) 
 
 Interest upon securities (Act Feb. 24, 1919) 
 
 NATIONAL PROHIBITION (Act Oct. 28, 1919)— 
 
 Abatement of liquor nuisance (Title I) 
 
 (Title II) 
 
 Action, injuries caused by intoxicated person (Title II) 
 
 Administrative provisions of internal revenue law, appli- 
 cability (Title III) 
 
 Advertisements, liquor .' (Title H) 
 
 Property used in illegal transportation of liquor (Title 
 
 Utensils, etc., for use in manufacture of liquor (Title 
 
 11) 
 
 Alcohol, denatured, exception from operation of national 
 
 prohibition act (Title II) 
 
 Extraction from liquid containing more than ^ of 1 per 
 
 cent by volume (Title II) 
 
 Amendment to Constitution 
 
 Analysis, articles enumerated (Title II) 
 
 Beverages ^Title II) 
 
 Application, definition (Title II) 
 
 Appropriation for enforcement of act (Title II) 
 
 Arrest, offenders (Title I) 
 
 Title II) 
 
 Person illegally transporting liquor (Title II) 
 
 Violation of injunction against liquor nuisance (Title 
 
 Assistant Commissioner, authority of Commissioner to act 
 
 through (Title II) 
 
 Attendance of witnesses at proceedings growing out of viola- 
 tion of act (Title II) 
 
 Attorney General, action to enjoin liquor nuisance(Title II) 
 Employment of assistants, clerks, etc., necessary to en- 
 force act (Title II) 
 
 Auction of vehicle, etc., used in transporting intoxicating 
 
 . liquor (Title II) 
 
 Beverages containing less than one-half of 1 per cent of 
 
 alcohol mtle II) 
 
 Billboards advertising liquor (Title II) 
 
 Blanks, prescriptions for liquor (Title II) 
 
 Bond, definition (Title II) 
 
 Development of liquid containing more than one-half of 
 
 ■ 1 per cent of alcohol (Title II) 
 
 Liquor nuisance abatement proceedings (Title I) 
 
 (Title II) 
 Owner of vehicle, etc., used in transporting liquor 
 
 (Title n) 
 
 Production of industrial alcohol (Title III) 
 
 Books, liquor prescription blanks (Title II) 
 
 Burden of proof as to lawful acquisition, possession and use 
 
 ofliquor (Title II) 33 363 
 
 Where person charged with manufacture or sale of liquid 
 containing one-half of 1 per cent or more of alco- 
 
 iioi Digitized by Miorosoft®^^^^ ") 37 364 
 
 231 
 213 
 
 497 
 482 
 
 4 
 
 22-24 
 
 20 
 
 348 
 
 358, 359 
 
 357 
 
 18 
 17 
 
 369 
 
 357 
 
 26 
 
 361 
 
 18 
 
 " 357 
 
 4 
 
 351 
 
 37 
 
 364 
 
 344 
 
 5 
 37 
 
 1 
 
 38 
 
 2,4 
 
 2 
 26 
 
 352 
 365 
 350 
 365 
 347, 348 
 350 
 360 
 
 24 
 
 359 
 
 1 
 
 350 
 
 30 
 22 
 
 362^ 
 358 
 
 38 
 
 365 
 
 26 
 
 360 
 
 37 
 
 17 
 
 8 
 
 1 
 
 364 
 357. 
 355 
 350 
 
 37 
 
 4 
 
 22 
 
 364 
 348 
 358 
 
 26 
 2 
 
 8 
 
 360 
 366 
 355 
 
INDEX. 989 
 
 NATIONALPROHIBITION(ActOct. 28, 1919)— Cont'd. Section. Paje. 
 
 Canal Zone, manufacture, sale, etc., of liquor. ..(Title III) 20 369 
 Carriers, accepting liquor for shipment where containing 
 
 false statement (Title II) 15 357 
 
 Notice of contents of receptacles received for ship- 
 ment (Title II) 14 356 
 
 Order to deliver liquor to one not bona fide con- 
 signee (Title II) 10 357 
 
 Place of sale where delivery of liquor made by 
 
 (Title II) 31 362 
 
 Records of transportation of liquor (Title II) 13 35C 
 
 Certified copies of records required by act (Title II) 34 363 
 
 Cider, exception from operation of national prohibition 
 
 act (Title II) 4 351 
 
 Manufacture for home use (Title II) 29 362 
 
 Citation, offenders against national prohibition act (Title 
 
 II) 9 355 
 
 Civil liability for injuries caused by intoxicated person 
 
 (Titlell) 20 357 
 
 Claim to property used in illegal transportation of liquor 
 
 (Titlell) 26 361 
 
 Collection of tax upon alcohol (Title III) 16 369 
 
 Colleges, withdra'wal of industrial alcohol for use by (Title 
 
 III) 11 368 
 
 Commissioner, acting through agent (Title 11) 1 350 
 
 Compromise of civil causes (Title II ) 35 363 
 
 Definition (Title II) 1 350 
 
 Employment of assistants, clerks, etc., necessary to en- 
 force act (Title II) 38 365 
 
 Investigations and reports of violations of law (Title 
 
 II) 2 350 
 
 Notice to show cause why articles should not be con- 
 sidered intoxicating liquor (Title II) 4, 5 351, 352 
 
 Permits to use liquor in manufacture of certain articles 
 
 (Titlell) 4,5 351,352 
 
 Power andprotection in enforcement of act. (Title II) 28 361 
 
 Enforcement of war prohibition act (Title I) 5 349 
 
 Regulations as to establishment, etc., of industrial alco- 
 hol plants, etc (Title iro 13 368 
 
 Report to, of possession of liquor (Title II; 33,34 363 
 
 Review of findings as to violations of national prohibi- 
 tion act (Title II) 5,9 352,855 
 
 Committing trial of offenders ...(Title I) 2 347 
 
 r Title II) 2 350 
 
 Comjiromises of civil causes , (Title II) 35 _ 363 
 
 Constitutional amendment " 344 
 
 Contempt, violation of injunction against liquor nuisance 
 
 (Titlel) 4 348 
 
 (Title II) 24 359 
 
 Copies of records required by act (Title II) 34 363 
 
 Cost of sale of property used in illegal transportation of 
 
 liquor (Title II) 26 360 
 
 Credit on tax on alcohol saved from liquid containing more 
 
 than one-half of 1 per cent by volume (Title II) 37 304 
 
 Damages, injuries caused by intoxicated person. (Title II) 20 357 
 
 Dealcoholized wines (Title II) 37 364 
 
 Death resulting from act of intoxicated person, civil liability 
 
 (Titlell) 20 357 
 
 Defensive negative averments in indictment dr informa- 
 tion (Title II) 32 362 
 
 Definitions, application (Title II) 1 350 
 
 Beer, wine, or other intoxicating * * * liquors 
 
 (Titlel) 1 347 
 
 Bond (Title II) 1 350 
 
 Commissioner (Title II) 1 350 
 
 Intoxicating- liquor (Title I) 1 347 
 
 (Title 11) 1 349 
 
 Digitized by Microsoft® 
 
990 INDEX. 
 
 NATIONAL PROHIBITION (Act Oct. 28, 1919)— Cont'd. 
 
 Definitions— Continued. Section. Page. 
 
 Liquor (Title II) I 349 
 
 Permit (Title 11) 1 350 
 
 Person (Title II) 1 350 
 
 Private dwelling (Title 11) 26 360 
 
 Begulation (Title II) 1 350 
 
 War prohibition act (Title I) 1 347 
 
 Delivery of seized liquor to department or agency of United > 
 
 States , (Title II) 27 361 
 
 Denatured alcohol, establishment of plant (Title III) 10 367 
 
 Exception from operation of national prohibition act 
 
 (Titlell) 4 351 
 
 Sale ,., _. (Title III) 10,13 367,368 
 
 Destruction, liquor and property designed for majiufactxire 
 
 ofUquor (Title II) 25 360 
 
 Liquor illegally transported (Title II) 26,27 360,361 
 
 Distilled spirits, purchase and sale of warehouse receipts 
 
 (Titlell) 3 351 
 
 Redistillation.... „ _. L {Title III) 6 366 
 
 Distillery, operation as industrial alcohol plant . . (Title III) 7 367 
 
 District attorneys, action to enjoin liquor nuisance (Title 
 
 II) 22 358 
 
 Prosecution of offenders (Title I) 2 347 
 
 District of Columbia, withdrawal of industrial alcohol by 
 
 (Titlelll) _. 11 368 
 
 Druggjsts, transportation to, of liquor manufactured before 
 
 act effective (Title II) 37 364 
 
 Dwelling houses, searches (Title II) 25 360 
 
 Effective date of provisions of act (Titlelll) 21 370 
 
 Employment of assistants, clerkSj etc., necessary to enforce 
 
 act (Title II) 38 365 
 
 Equity, review of finding of Commissioner as to violation of 
 
 national prohibition act (Title II) 5,9 352,355 
 
 Establishment of denaturing plant. (Title III) 10 367 
 
 Evidence, burden of proof as to lawful possession of liquor 
 
 <TitleII) : 33 363 
 
 Burden of proof where person charged with manufacture 
 or sale of liquid containing one-half of 1 per cent or 
 
 more of alcohol by volume (Title II) 37 364 
 
 Possession of liquor as prima facie evidence of violation 
 
 ofact (Title II) 33 362 
 
 Exemplary damages, injuries caused by intoxicated person 
 
 (Titlell) 20 357 
 
 Exemption of industrial alcohol plants and warehouses from 
 
 ' certain sections of Revised Statutes (Title III) 9 367 
 
 Expense, analysis of beverages (Title II) 37 365 
 
 Keeping property used in illegal transportation of liq- 
 uor (Title II) 20 360 
 
 Export of denatured alcohol (Title III) 10, 13 367 , 368 
 
 Extension of permits for sale, manufacture, etc., of liquor 
 
 (Titlell) <i 353 
 
 Palse reports, etc., penalty for making (Title U) 29 361 
 
 Family use, manufacture of cider or fruit juices for (Title 
 
 II) 29 362 
 
 Possession of intoxicating liquor in private dwelling 
 
 for (Title II) 33 363 
 
 Pees, officer for removin and selling property involved in 
 
 liquor nuisance , (Title. II) 23 359 
 
 Seizure of property used in illegal transportation of 
 
 liquor -. (Title II) 26 360 
 
 Fermented liquor, permit to develop liquid containing more 
 
 than one-half of 1 per cent of alcohol (Title II) 37 364 
 
 Flavoring extracts, exception from operation of national 
 
 prohibition act (Title II) 4 351 
 
 Foreign newspapers advertising liquor (Title II) 17 3 57 
 
 Digitized by Microsoft® 
 
INDEX. 991 
 
 NATIONAL PROHIBITION (Act Oct. 28, 1919)— Cont'd, section. Page. 
 Forfeiture of lease where liquor ijjiisance maintained (Title 
 
 Fortified wiues (Title II) 
 
 Fruit juices, manufacture for home use (Title II) 
 
 Guests, use of liquor for entertainment of (Title . II) 
 
 Home use, manulicture of cider and fruit juices for (Title 
 
 Possession of intoxicating liquor for (Title II) 
 
 Hospitals, use of liquor in treatment of alcoholism (Title 
 
 II) 
 
 Withdrawal of industrial alcohol for use in.. (Title III) 
 Incrimination of self, witnesses in proceedings growing out 
 
 of violation of act (Title II) 
 
 Indictment or information, joinder of offenses, etc. (Title 
 
 II) 
 
 Industrial alcohol, alcohol defined (Title III) 
 
 Container defined (Title III) 
 
 Plants and warehouses (Title III) 
 
 Information of how liquor may be obtained, giving (Title 
 
 Injunction, restraining liquor nuisance (Title I 
 
 (Title II, 
 Restraining manufactme or sale of articles in violation 
 
 of national prohibition act (Title II) 
 
 Inspection of records and reports required by act. (Title II) 
 
 Intent, maintenance of liquor nuisance (Title II) 
 
 Intoxicating liquor, definition (Title II) 
 
 Investigation of violations of law (Title I) 
 
 Joinder of offenses in indictment, etc (Title II) 
 
 Joint and several liability for tax on industrial alcohol 
 
 (Title III) 
 
 Judgment, abatement of liquor nuisance (Title II) 
 
 Jurisdiction, action for injuries caused by intoxicated per- 
 son (Title II) 
 
 Enforcement of lien for penalty for conducting liquor 
 
 nuisance (Title II) 
 
 Proceedings to abate liquor nuisances (Title l) 
 
 (Title II) 
 
 Keeping or carrying around liquor (Title II) 
 
 Labels, liquor containers (Title II) 
 
 Lease, forfeiture in case of maintenance of liquor nuisance 
 
 (Title II) -• - - 
 
 Forfeiture where property used in violation of war pro- 
 hibition act (Title I) 
 
 Liens, penalties for conducting liquor nuisance . .(Title II) 
 Property used in illegal transportation of Uquor 
 
 (Title II) 
 
 Tax on industrial alcohol (Title III) 
 
 Liquor, definition (Title II) _ 
 
 LoBsof alcohol byevaporationjetc, refund of tax.(Title III) " 
 Mail, notice to show cause why articles should not be con- 
 sidered intoxicating liquor (Title II) 
 
 Manner of producing alcohol (Title III) 
 
 Manufacture or sale of liquor in violation of law, penalty 
 
 (Title II) 29 361 
 
 Mechanical use, delivery of seized liquor to department or 
 
 agency of Umted States for (Title II) 27 361 
 
 Medicinal preparations, exception from operation of national 
 
 prohibition act (Title II) 4 351 
 
 Medicinal use, delivery of seized liquor to department or 
 
 agency of the United States for (Title II) 27 361 
 
 Purchase and use of liquor for medicinal puiposes . 
 
 (Title II) 6 353 
 
 Name of purchaser of liquor, indictment or information 
 (Title II) 32 362 
 
 Digitized by Microsoft® 
 
 23 
 
 359 
 
 37 
 
 364 
 
 29 
 
 362 
 
 33 
 
 363 
 
 29 
 
 362 
 
 33 
 
 363 
 
 G 
 
 353 
 
 11 
 
 368 
 
 30 
 
 362 
 
 32 
 
 362 
 
 1 
 
 365 
 
 1 
 
 366 
 
 2-19 
 
 366-369 
 
 19 
 
 357 
 
 4 
 
 348 
 
 22-24 
 
 358, 359- 
 
 5 
 
 352 
 
 34 
 
 363 
 
 23 
 
 359 
 
 1 
 
 350 
 
 2 
 
 347 
 
 32 
 
 362 
 
 5 
 
 366 
 
 22 
 
 358 
 
 20 
 
 357 
 
 21 
 
 358 
 
 4 
 
 348 
 
 22 
 
 358 
 
 23 
 
 359 
 
 12 
 
 366 
 
 23 
 
 359 
 
 3 
 
 347 
 
 21 
 
 358 
 
 26 
 
 360 
 
 5 
 
 366 
 
 1 
 
 350 
 
 14 
 
 368 
 
 5 
 
 352 
 
 8 
 
 367 
 
992 INDEX. 
 
 NATIONALPBOHIBITION(ActOot. 38, 1919)— Cont'd, section. Page. 
 Negative averments in indictment or ii^ormation (Title 
 
 II) 32 362 
 
 Newspapers, liquor advertisements (Title II) 17 357 
 
 Nonbeverage liquor, manufacture, etc (Title II) 3 351 
 
 Notice to show cause why articles should not be considered 
 
 intoxicating liquor (Title II) 4,5 351,352 
 
 Nuisance, building, vehicle, etc., where liquor is manufac- 
 tured, sold, etc (Title II) 21 358 
 
 Enjoining (Title I) 4 348 
 
 (Title 11^ 22-24 358,359 
 
 Keeping or carrying around liquor (Title II) 23 359 
 
 Place of sale of intoxicating liquor (Title I) 3 347 
 
 Orders for liquor, solicitation (Title II) 19,23 357,359 
 
 Panama Canal, manufacture, sale, etc., of liquor in Canal 
 
 Zone (Title III) 20 369 
 
 \ Parents, right of action for injuries to child caused by intoxi- 
 cated person (Title II) 20 357 
 
 Partial invalidity of act, effect (Title II) 36 364 
 
 National prohibition act (Title I) 6 349 
 
 Passage of act over President's veto 370 
 
 Penalties, contempt of court by violation ot injunction 
 
 against liquornuisance (Title II) 24 359 
 
 Industrial alcohol, illegal manufacture, sale, etc. (Title 
 
 III) 12 368 
 
 Illegal operation of plant (Title III) 15 368 
 
 Illegal withdrawal (Title III) 15 368 
 
 Liquor nuisance, maintenance (Title II) 21 358 
 
 Manufacturing or selling liquor (Title II) 29,35 361,363 
 
 CanalZone (Title III) 20 369 
 
 Sales of articles in violation of national prohibition act 
 
 (Titlell) 4 351 
 
 Violation of injunction restraining liquor nuisance 
 
 (Title I) 4 348 
 
 Permit (Title II) 29 361 
 
 War prohibition act (Title I) 3 347 
 
 Perjury, proceedings growing out of violation of act (Title 
 
 II) 30 362 
 
 Permit, definition (Title II) 1 350 
 
 Industrial alcohol warehouses, establishment (Title 
 
 III) 3 366 
 
 Manufacture of certain articles containing liquor, revo- 
 cation : (Title II) 5 352 
 
 Manufacture or use of alcohol where law has been vio- 
 lated (Title III) 16 369 
 
 Manufacture, sale, etc., of liquor (Title II) 6 353 
 
 Nonbe verage liquor, etc (Title II) 3 351 
 
 Operation of industrial alcohol plant (Title III) 2, 7 366, 367 
 
 Penalty for violating ^ (Title II) 29 361 
 
 Purchase aipd use of liquor prescribed by physician 
 
 (Titlell) 6,11 353,356 
 
 Purchase of industrial alcohol (Title III) 11 368 
 
 Revocation of permit to manufacture, sell, etc., liquor 
 
 (Titlell) 5,9 352,355 
 
 Storage of hquor (Title II) 37 364 
 
 Person, definition (Title II) 1 350 
 
 •Personal injuries caused by intoxicated persons, civil lia- 
 bility (Title II) 20 357 
 
 Pharmacists, sales of liquor by (Title II) 6-8, 11 353-356 
 
 Physicians, liquor prescriptions (Title II) 6-8 353-355 
 
 Place of sale of intoxicating liquor as nuisance.. (Title I) 3 347 
 
 Liquor delivered by carrier (Title II) 31 362 
 
 ession, liquor (Title II) 25 360 
 
 Liquor, prima facie evidence of violation of act (Title 
 
 II) 33 3g2 
 
 Private dwelling (Title II) 33 363 
 
 Property designed for manufacture of liquor. (Title II) 25 360 
 
 Digitized by Microsoft® 
 
INDEX. 
 
 993 
 
 NATIONAL PROHIBITION (Act Oct. 28, 1919)— Cont'd. 
 
 Possession — Continued.- Section. 
 
 Vehicle, etc., used in transporting liquor, taking (Title 
 
 11) - 26 
 
 Power and protection of Commissioner and others in en- 
 forcement of act (Title II) 28 
 
 Preference to soldiers and sailors in employing assistants, 
 
 clerks, etc . , necessary to enforce act (Title II) 38 
 
 Prescriptions for liquor (Title II) 6-8 
 
 Price lists of liquor (Title II) 17 
 
 Prior conviction, effect (Title II) 29 
 
 Private dwelling, possession of liquor in (Title II) 33 
 
 Searches (Title II) 25 
 
 Property rights in liquor or property designed for manu- 
 facture of liqaior (Title II) 25 
 
 Proprietary medicines, exception from operation of national 
 
 prohibition act (Title II) 4 
 
 Prosecuting attorney of State, action to enjoin liquor nui- 
 sance (Title II) 22 
 
 Public auction of vehicle, etc., used in transporting intoxi- 
 
 catingliquor (Title II) 26 
 
 Receipts for taxes, issue in advance of manufacture of 
 
 liquor (Title m 35 
 
 Records, filing with assistant Commissioner, etc . (Title II) 1 
 
 Manufacture, sale, etc., of liquor (Title II) 10 
 
 Prescriptions for liquor (Title 11^ 7 
 
 Redistillation of distilled spirits (Title III) 6 
 
 Refund of tax, alcohol lost by evaporation, etc . .(Title III) 14 
 
 Registration of industrial alcohol plant (Title III) 2 
 
 Regulations, definition (Title II) 1 
 
 Establishment, etc., of industrial alcohol plants, etc. 
 
 (Title III) 13 
 
 Establishment of plant to manufacture, etc., alcohol. 
 
 (Title III) 13 
 
 President or Secretary of War or Navy, repeal by na- 
 tional prohibition act (Title I) 7 
 
 Transfer or withdrawal of alcohol produced at registered 
 
 plant (Title III) 4,6,11 
 
 Release, property involved in violation of war prohibition 
 
 act (Title I) 4 
 
 Property seized for violation of industrial alcohol pro- 
 visions (Title III^ 17 
 
 Repeal, inconsistent laws (Title II) 35 
 
 Laws relating to alcohol (Title III) 19 
 
 War prohibition act (Title I^ 7 
 
 Replevin of property seized under search warrant. (Title II) 25 
 
 Reports, possession of liquor (Title II) 33, 34 
 
 Violations of law (Title I^ 2 
 
 Restraining orders, liquor nuisance (Title I) 4 
 
 (Title II) 22 
 Review of finding of Commissioner as to violations of national 
 
 prohibition act (Title II) 5,9 
 
 Rum, denatured, exception from operation of national pro- 
 hibition act (Title m 4 
 
 Sacrament, wine for use in (Title II) 3,6 
 
 Sale of liquor in violation of law, penalty (Title II) 29 
 
 Property used in illegal transportation of liquor 
 
 (Title II) 26 
 
 Sanatoriums, use of liquor in treatment of alcoholism 
 
 (Title II) 6 
 
 Withdrawal of industrial alcohol for use in. .(Title III) 11 
 Scientific use, delivery of seized liquor to department or 
 
 agency of United States for (Title 11) 27 
 
 Withdrawal of industrial alcohol for (Title III) 11 
 
 Search warrant (Title II) 2,25 
 
 i40i84°-20 — 63 Digitized by Microsoft® 
 
 360 
 
 361 
 
 365 
 353-355 
 357 
 362 
 363 
 360 
 
 360 
 
 351 
 
 358 
 
 360 
 
 363 
 350 
 355 
 354 
 366 
 368 
 366 
 350 
 
 368 
 
 368 
 
 349 
 
 366, 368 
 
 348 
 
 369 
 363 
 369 
 349 
 360 
 363 
 347 
 348 
 358 
 
 352, 355 
 
 351 
 
 351, 353 
 
 361 
 
 361 
 
 353 
 368 
 
 361 
 
 368 
 
 350, 360 
 
Section,. 
 
 Pagft. 
 
 26 
 
 360 
 
 25 
 
 360 
 
 IT 
 
 17 
 
 369 
 357 
 
 38' 
 19,23 
 16 
 35 
 
 365 
 
 357, 359 
 
 369 
 
 363 
 
 22 
 11 
 37 
 
 358 
 368 
 364 
 
 4 
 
 351 
 
 35 
 
 363 
 
 4 
 
 348 
 
 22-24 
 
 358, 359 
 
 5 
 
 366 
 
 9^4 INDEX. 
 
 NATIONAL PROHIBITION- (Act Oct. 28, 19-l&)^CoH.t'd. 
 
 Seizure, liquors being transported (Title II), 
 
 Liquor or property designed for manufacture of liquor 
 
 (Title II) 
 
 Property, violation of industrial alcohol provisiona 
 
 (Title III), 
 
 Signs advertising liquor . (Title II) 
 
 Soldiers and sailors, preference in emplDyment. of assistants, 
 
 clerks, etc . , necessary tO' enforce act (Title II) 
 
 Solicitation of orders foe liquor (Title 11) 
 
 Stamps, alcohol tax (Title III) 
 
 Issue in advance of manufacture of liquor. . (Title II) 
 State prosecuting attorney,, action to enjoin liquor nuisance 
 
 (Title II) 
 
 States, withdrawal of industrial alcohol by (Title III) 
 
 Storage of liquor manufactured before act eflective (Title II) 
 Summons where property of citizen proceeded against 
 
 (Title II)---- ....-- - - 39 365 
 
 Survival of action for injuries caused by intoxicated person 
 
 (Titlell) 20 357 
 
 Sweet cider, exception from operation of national prohibition 
 
 act (Title IIJ 
 
 Tax on illegally manufactured liquor (Title II) 
 
 Temporary injunction against liquor nuisance - - - (Title I) 
 
 (Title II) 
 
 Time tax attaches to industrial alcohol (Title III) 
 
 Toilet articles, exception from operation of national prohi- 
 bition act (Titlell) 4 351 
 
 Transfer of alcohol produced at registered industrial plant 
 
 (Titlelll) 4 366 
 
 Transportation of intoxicating liquors in riolation of law 
 
 (Titlell) 
 
 Liquor manufactured before act effective. . . (Title II) 
 United States Government, delivery of seized liquor to de- 
 partment or agency of (Title II) 
 
 Report of violations of law to attorneys (Htle 11) 
 
 Withdrawal of industrial alcohol by (Title III) 
 
 Universities, withdrawal of industrial alcohol for use by 
 
 (Titlelll) 
 
 Vinegar, exception from operation of national prohibition 
 
 act ; (Title II) 
 
 Raising of proof or denaturation thereof (Title III) 
 
 Warehouses, industrial alcohol (Title III) 
 
 Receiptsfordi8tilIedBpirits,purchaaeandsale.fTitle II) 
 
 Warrants, arrest of offenders (Title I) 
 
 (Title II) 
 Arrest, violation of injunction against liquor nuisflnce 
 
 (Titlell) 
 
 Search warrants (Title II) 
 
 Wines, sacramental purposes (Title 11) 
 
 Withdrawal, industrial alcohol from warehouses, etc. 
 
 (TLtlelll) 11 367 
 
 Distilled spirits from bonded warehouses for denatura- 
 tion (Title III) G 366 
 
 Witnesses, attendance and testimony in proceedings growing 
 
 out of violation of act (Title 11) 30 362 
 
 NAVY. (See Army and Navy.) 
 NE EXEAT— 
 
 Jurisdiction of district court to issue writ to enforce revenue 
 
 actofl918 - (Act Feb. 24, 1919) 1318 631 
 
 NEGLIGENCE— 
 
 Internal revenue officer or agent, ground for dismissal 3169 98 
 
 NET INCOME— 
 
 Income tax purposes. {See Income taxes.) 
 
 Digitized by Microsoft® 
 
 26 
 
 360 
 
 37 
 
 364 
 
 27 
 
 361 
 
 2 
 
 350 
 
 11 
 
 368 
 
 11 
 
 368 
 
 4 
 
 351 
 
 10 
 
 367 
 
 9, 11-19 
 
 366-369 
 
 3 
 
 351 
 
 2,4 
 
 347, 348 
 
 2 
 
 350 
 
 24 
 
 359 
 
 2,25 
 
 350, 360 
 
 3,6 
 
 551, 353 
 
403 
 
 527 
 
 216, 217 
 
 488 
 
 214, 217 
 
 487, 488 
 
 213 
 
 483 
 
 221 
 
 491 
 
 210 
 
 478 
 
 217 
 
 488 
 
 3180, 3181 
 
 111 
 
 3412, 3413 
 
 577 
 
 ....... .^ . 
 
 569 
 
 INDEX. 995 
 
 NEWSPAPERS. (See Advertisements.) Section. Page. 
 
 Liquor advertisements (Act Oct. 28, 1919, Title II) 17 357 
 
 NOLLE PROSEQUI— 
 
 Prosecution under section 3257 3230 151 
 
 NONRESIDENTS— 
 
 Estate tax, deductions, returns, etc fAct Feb. 24, 1919) 
 
 Income taxes, credits (Act Feb . 24, 1919) 
 
 Deductions fAct Feb. 24, 1919) 
 
 Gross income (Act Feb. 24, 1919) 
 
 Payment of tax at source (Act Feb . 24, 1919) 
 
 Rate (Act Feb. 24, 1919) 
 
 Returns (Act Feb. 24, 1»19) 
 
 Lists of taxable property of 3180, 3181 
 
 NOTES— 
 
 Circulating bank notes 3412, 3413 
 
 Stamp tax (Act Feb. 24, 1919). 
 
 NOTICE— 
 
 Brewers 3335 305 
 
 Carriers, contents of containers received for shipment (Act 
 
 Oct. 28, 1919, Title 11) 14 356 
 
 Caution notices. (5'ee Caution notices.) 
 
 Charges against persons in classified civil service (Act Aug. 
 
 24,1912) 
 
 Deficiency in accounts of principals (Act Aug. 8, 1888) 
 
 Distilled spirits, arrival at port for expoTtatioin (Act June 9, 
 
 1874) 
 
 Distillers, intention to carry on business 
 
 Suspension of work 
 
 Distraint for taxes 
 
 Sale 
 
 Collector's property 
 
 Estate tax, false notice, penalty (Act Feb. 24, 1919) 
 
 Qualification of executor, etc (Act Feb. 24, 1919) 
 
 Execution of process on agent of surety company (Act Aug. 
 
 13, 1894) 
 
 Filing returns, v/here taxpayer absent 
 
 Income tax, due date of (Act Feb. 24, 1919) 
 
 Lien for unpaid taxes 
 
 Manufacturers of enumerated articles, to show cause why not 
 dealt with as intoxicating liquor (Act Oct 28, 1919, Title 
 
 II) 
 
 Itlunition manufacturer's tax, amount. (Act Sept. 8, 1916) 
 
 Payment of tax ■ 3184, 3185 
 
 Production of books in stiits other tlian criminal (Act June 
 
 22,1874) - 
 
 Rectifiers, intention to carry on business 
 
 Intention to rectify (ActJuIy 16, 1892). 
 
 Sale, real estate for taxes 
 
 (Act Mar. 3, 1893) 
 Real estate of collector in proceeding to collect moneys 
 
 due 
 
 Seizure of goods 
 
 Tobacco peddler's-property 
 
 Smoking opium manufacturers (Act Jan. 17, 1914) 
 
 Still manufacturers 
 
 (Act May 28, 1880) 
 (Act Oct. 3, 1913) 
 Trui^t or legacy, duty of executor, etc. . . (Act Apr. 12, 1902) 
 NITISANCBS— 
 
 Intoxicating liquor, keeping or carrying around (Act Oct 28, 
 
 1919, Title II) 23 359 
 
 Places where manufactured, kept, etc. (Act Oct. 28, 
 
 1919,TitleII) - 21 358 
 
 War prohibition act, violation of (Act Oct. 28, 1919, 
 
 Titie I) Digitized -by- Mtemsoff® s 347 
 
 6 
 
 694 
 
 1 
 
 G18 
 
 1 
 
 283 
 
 3259 
 
 210 
 
 3310 
 
 266 
 
 3190 
 
 120 
 
 3194 
 
 122 
 
 3217 
 
 135 
 
 410 
 
 582 
 
 404 
 
 529 
 
 2 
 
 613 
 
 3173 
 
 104 
 
 250 
 
 506 
 
 3186 
 
 118 
 
 4,5 
 
 351, 352 
 
 305, 306 
 
 827 
 
 3184, 3185 
 
 116, 117 
 
 5 
 
 644 
 
 3259 
 
 210 
 
 
 272 
 
 3197 
 
 122 
 
 3 
 
 125 
 
 3217 
 
 135 
 
 3460 
 
 600 
 
 3383 
 
 389 
 
 2 
 
 413 
 
 3265 
 
 219 
 
 18 
 
 163 
 
 IV(N) 
 
 163 
 
 8 
 
 705 
 
996 
 
 INDEX. 
 
 OATHS— Section. 
 
 Brewers' books, verification of entries 8338 
 
 Clerks and officers 1790 
 
 Definition 1 
 
 Distillers' returns 3307 
 
 Fiduciaries making income tax returns. .(Act Feb. 24, 1919) 225 
 
 Gaugers 3156 
 
 Perjury, punishment (Act Mar. 4, 1909) 125 
 
 Returns. (jSce specific heads.) 
 
 Revenue officers authorized to administer 3165 
 
 Storekeepers 3153 
 
 Superintendent of drawback, authority to administer 3162 
 
 Travel expense accounts. .(Act Aug. 24, 1912) 8 
 
 OBSOLESCENCE— 
 
 .(Act Feb. 24, 1919) 214,234 485,499 
 
 Income taxes, deductions 
 
 OBSTRTJCTIOKr— 
 
 Internal revenue officers in performance of duties 
 
 Search warrant, service (Act June 15, 1917) 
 
 Writs, service of (Act Mar. 4, 1909) 
 
 OCCUPATIONAL TAXES— 
 
 Administrators, carrying on business of decedent, effect 
 
 Liability 
 
 Adulterated butter, manufacturers (Act May 9, 1902) 
 
 Retail dealers (Act May 9, 1902) 
 
 Wholesale dealers _. (Act May 9, 1902) 
 
 Alaska, officers charged with duty of enforcing liquor law 
 (Act Feb. 14, 1917) 
 
 Prohibition of sale of intoxicating liquor or alcohol in 
 (Act Feb. 14, 1917) 
 
 Special-tax stamp or receipt as evidence of sale of 
 
 intoxicating liquors (Act Feb . 14, 1917) 
 
 Alcohol dealers, Alaska (Act Feb. 14, 1917) 
 
 Brewers 
 
 Liability as dealers in malt liquors 
 
 Penalty for carrying on business without pa5dng tax. . . 
 Butter. {See Adulterated butter, ante; Oleomargarine, 
 
 Process or renovated butter, post.) 
 Butterine. [See Oleomargarine, post.) 
 Certified copies, list of taxpayers 
 
 Special-tax stamp or receipt as prima facie evidence 
 
 of sale of intoxicating liquors (Act Feb. 14, 1917) 
 
 Chemists 
 
 Cigar manufacturers (Act Feb. 24, 1919) 
 
 Buying cigars in case of nonpayment of tax 
 
 Penalty for failure to pay tax , 
 
 Costs, prosecution for failure to keep stamp in conspicuous 
 
 place 
 
 Death of taxpayer, effect as to carrying on business 
 
 Definitions, brewers 
 
 Dealer in filled cheese (Act June 6, 1896) 
 
 Distilled spirits 
 
 Distiller 
 
 Gallon 
 
 Intoxicating liquor (Act Feb. 14, 1917) 
 
 Liquor (Act Feb. 14, 1917) 
 
 Manufacturer of adulterated butter.. (Act May 9, 1902) 
 
 Manufacturer of filled cheese (Act June 6, 1896) 
 
 Manufacturer of oleomargarine (Act Aug. 2, 1886) 
 
 Manufacturer of process or renovated butter (Act May 
 9, 1902) 
 
 Manufacturer of stills 
 
 Proof spirits 
 
 Rectifier 
 
 3177, 3276 
 
 18 
 
 140 
 
 3244(5) 
 
 3244(5) 
 
 4 
 
 4 
 
 4 
 
 27 
 
 I, 26 
 
 3240 
 
 Page. 
 307 
 703 
 70 
 262 
 494 
 88 
 674 
 
 95 
 84 
 92 
 95 
 
 110, 225 
 604 
 
 674 
 
 171 
 171 
 174 
 174 
 174 
 
 185 
 
 185 
 
 26 
 
 185 
 
 1,26 
 
 185 
 
 3244(1) 
 3244(5) 
 
 162 
 
 170 
 
 3242 
 
 159 
 
 157 
 
 26 
 
 185 
 
 3246 
 
 176 
 
 1002 
 
 182 
 
 3405 
 
 410 
 
 3242 
 
 159 
 
 3239 
 
 157 
 
 3241 
 
 158 
 
 3244(1) 
 
 162 
 
 3 
 
 175 
 
 3248 
 
 190 
 
 3247 
 
 189 
 
 3250 
 
 192 
 
 1 
 
 185 
 
 1 
 
 185 
 
 4 
 
 174 
 
 3 
 
 175 
 
 3 
 
 172 
 
 4 
 
 174 
 
 3244(2) 
 
 163 
 
 3249 
 
 190 
 
 3244(3) 
 
 164 
 
 Digitized by Microsoft® 
 
INDEX. 
 
 997 
 
 OCCUPATIONAL TAXES— Continued. 
 Definitions — Continued. 
 
 Retail dealer in liquor 
 
 Retail dealer in malt liquors 
 
 Retail dealer in oleomargarine (Act Aug. 2, 1886) 
 
 Wholesale dealer in malt liquors 
 
 Wholesale dealer in oleomargarine... (Act Aug. 2, 1886) 
 
 Wholesale liquor dealer 
 
 Distillers, liability as wholesale liquor dealers 
 
 Penalty for doing business without paying tax (Act 
 
 Feb. 8, 1875) 
 
 District of Columbia, sale of intoxicating liquor in, prima 
 
 facie evidence (Act Mar. 3, 1917) 
 
 Drawback on stills manufactured for export (Act Mar. 1, 
 
 1879) 
 
 Evidence, keeping or selling intoxicating liquor (Act Feb. 
 
 14, 1917) 
 
 (Act Mar. 8, 1917) 
 
 Executors, carrying on business of decedent, effect 
 
 Liability 
 
 Export, drawback on stills manufactured for (Act Mar. 1, 
 
 1879) 
 
 Fiduciaries, liability 
 
 Filled cheese, manufacturers (Act June 6, 1896) 
 
 Retail dealers (Act June 6, 1896) 
 
 Wholesale dealers (Act June 6, 1896) 
 
 Flavoring extract manufacturers 
 
 Liquor dealers, Alaska (Act Feb. 14, 1917) 
 
 Retail 
 
 Passenger trains or steamboats ( Jt. Res. May 8^ 1876) 
 Payment of special tax as evidence of keeping or 
 
 selling liquor (Act Mar. 3, 1917) 
 
 Wholesale 
 
 Payment of special tax as evidence of keeping or 
 
 selling liquor (Act Mar. 8, 1917) 
 
 List of taxpayers, exhibition in collector's office 
 
 Malt liquor dealers 
 
 Carrying on business without paying tax 
 
 (Act Feb. 8, 1875) 
 Mixed flom-, manufacturers, packers or repackers (Act June 
 
 13, 1898) _ 
 
 Purchasing from one who has not paid tax (Act June 
 
 13, 1898) 
 
 More than one pursuit carried on in one place by same per- 
 son at same time 
 
 Oleomargarine, manufacturers and dealers (Act Aug. 2, 
 
 1886) ....: 
 
 Penalty for doing business without paying (Act Aug. 
 
 2, 1886) , 
 
 Penalty for purchasing where not paid (Act Aug. 2, 
 
 1886) 
 
 Partnership, liabilitjr of persons constituting 
 
 Liability of surviving partner 
 
 Payment, condition precedent to carrying on occupation.. . 
 
 Exemption from penalty under State laws 
 
 Several places of business 
 
 Stamps required 
 
 Penalties, carrying on business without paying tax 
 
 (Act Feb. 8, 1875) 
 (Act Aug. 2, 1886) 
 (Act May 9, 1902) 
 
 Officers collecting tax from certain rectifiers 
 
 Process orrenovated butter, manufacturers. (ActMay 9, 1902) 
 Receipt, prima facie evidence of sale of intoxicating liq- 
 
 Section. 
 
 Page. 
 
 3244(4) 
 3244(5) 
 
 166 
 
 170 
 
 3 
 
 173 
 
 3244(5) 
 
 171 
 
 3 
 
 173 
 
 3244(4) 
 
 166 
 
 3244(4) 
 
 166 
 
 16 
 
 160, 228 
 
 12 
 
 185 
 
 10 
 
 164 
 
 26 
 
 185 
 
 12 
 
 185 
 
 3241 
 
 158 
 
 3244(5) 
 
 171 
 
 10 
 
 164 
 
 3244(5) 
 
 171 
 
 3,4,13.: 
 
 175, 
 176, 448 
 
 3,4 
 
 175 
 
 3,4 
 
 175 
 
 3246 
 
 176 
 
 1,26 
 
 185 
 
 32-14(4, 5) 
 
 166, 170 
 
 
 
 154 
 
 12 
 
 185 
 
 3244(4, 5) 
 
 166, 171 
 
 12 
 
 185 
 
 3240 
 
 157 
 
 3244/ 
 
 162, 
 170, 171 
 
 3242 
 
 159 
 
 16 
 
 160 
 
 36 
 
 176, 451 
 
 43 
 
 454 
 
 3236 
 
 155 
 
 3 
 
 172, 173 
 
 4 
 
 431 
 
 12 
 
 435 
 
 3244(5) 
 3244(5) 
 
 171 
 
 171 
 
 3232 
 
 154 
 
 3243 
 
 161 
 
 3235 
 
 155 
 
 3238 
 
 156 
 
 3242 
 
 159 
 
 16 
 
 160, 228 
 
 4 
 
 431 
 
 4 
 
 161 
 
 3244(3) 
 
 164 
 
 4 
 
 174 
 
 26 
 
 185 
 
998 
 
 INDEX. 
 
 OCCUPATIONAL TAXES— Continued. Section. Pago. 
 
 Rectifiers 3244(3) 164 
 
 Penalty for doing business without paying tax (Act 
 
 Feh.8, 1875) 16 160,228 
 
 Registration, death, removal, etc., of taxjayer 3241 158 
 
 Name, place of business, etc., of special-tax payer 3233 154 
 
 Returns, time for making 3237 156 
 
 Several places of business, payment of one tax as covering. . 3235 155 
 
 Stamps, exhibition in place of business 3239 157 
 
 Paymentby 3238 156 
 
 Prima facie evidence of sale of intoxicating liq- 
 uors (Act Feb. 14, 1917) 26 185 
 
 Stills or worms, manufacturers 3244(2) 163 
 
 (Act May 28, 1880) 18 163 
 
 (Act Oct. 3, 1913) IV(N) 163 
 
 Storage, special tax where goods, etc., are in 3235 155 
 
 Time when tax is due 3237 156 
 
 Tobacco, buying from manufacturer, in case of nonpayment 
 
 oftax 3367 380 
 
 Dealer carrying on business without paying tax 3242 159 
 
 Vintners 3246 176 
 
 Act February 24, 1919— 
 
 Agricultural fairs 1001(7) 180 
 
 Automobiles, operating or renting 1001(11) 181 
 
 Billiard-room proprietors 1001(8) 181 
 
 Boats, use of 1003 183 
 
 BowUng-alley proprietors 1001(8) 181 
 
 Brewers 1001(12) 181 
 
 Brokers 1001(1) 179 
 
 Chautauquas 1001(7) 180 
 
 Cigar manufacturers. 1002 182 
 
 Cigarette manufacturers 1002 182 
 
 Circus proprietors 1001(6) 180 
 
 Credits, tax paid under sections 407, 408, revenue act of 1916. 1004 184 
 
 Customhouse brokers 1001(4) 180 
 
 Definitions, brokers 1001(1) 179 
 
 Circus 1001(6) 180 
 
 Customhouse broker 1001(4) 180 
 
 Manufacturer of cigars 1002 l82 
 
 Manufacturer of cigarettes 1002 l82 
 
 Manufacturer of tobacco 1002 ]82 
 
 Pawnbroker 1001(2) 179 
 
 Shipbroker 1001(3) 179 
 
 Theater 1001(5) 180 
 
 Distillers 1001(12) l81 
 
 Fairs 1001(7) l80 
 
 Industrial fairs 1001(7) l80 
 
 Lecture lyceums 1001(7 ) l80 
 
 Liquor dealers, retail 1001(12) 181 
 
 Wholesale 1001(12) 181 
 
 Malt hquor dealers 1001(12) 181 
 
 Motor boats, use of 1003 183 
 
 Pawnbrokers 1001(2) 179 
 
 Payment, exemption from penalty under State laws 1001(12) 181 
 
 Penalties, failure to pay, collect, etc., tax 1308 628 
 
 Nonpayment of tax | 1308?a)} ^^'^' ^'^ 
 
 Pleasure boats, use of 1003 183 
 
 Power boats, use of 1003 183 
 
 Public exhibition and show proprietors or agents 1001(7) 180 
 
 Receipts in lieu of special-tai stamp 1004 184 
 
 Returns, attestation 1309 629 
 
 Penalty for failure to make 1308(a) 628 
 
 Riding-academy proprietors 1001(10) 181 
 
 Sailing boats, use of 1003 183 
 
 Ship brokers 1001(3) 179 
 
 Shooting-gallery proprietors 1001(9) 181 
 
 Digitized by Microsoft® 
 
INDEX. 
 
 999 
 
 OCCTJPATIONAIi TAXES— Continued. 
 Act February 34j 1919 — Continued. 
 
 States, payment of tax for exMbition in one State as affect- 
 ing Kability in another State 
 
 Still manufactiu'ers 
 
 Street fairs 
 
 Theater jwoprietors 
 
 Tobaceo manufacturers '. 
 
 Yachts, use of 
 
 Act SeEttember 8, 1916— 
 
 Agricultural fairs, exemption 
 
 Assessment 
 
 Billiard-room xxroprietors 
 
 BowKng-alley proprietors 
 
 Brokers 
 
 Charitable organizations, exemption of exhibitions under 
 
 auspices of 
 
 Chautauquas, exemption 
 
 Circus proprietors 
 
 Concert-hall proprietors 
 
 Customhouse brokers 
 
 Definitions, billiard room 
 
 Bowling alley 
 
 Brokers -- 
 
 Circus 
 
 Customhouse brokers 
 
 Pawnbrokers. . .'. 
 
 Ship brokers 
 
 Theater 
 
 Fairs, exemption 
 
 Industrial fairs, exemption. 
 
 Lecture Lyceums, exemption 
 
 Museum proprietors .^- - - - 
 
 Pawnbrokers 
 
 Payment of tax in one State as affecting liability in another. 
 
 Pool-room proprietors 
 
 Public exhibition proprietors or agents 
 
 Rate of tax 
 
 Records 
 
 Regulations 
 
 Religious organizations, exemption of exhibitions under 
 
 auspices of - 
 
 Returns 
 
 Ship brokers - 
 
 Street fairs, rate of tax 
 
 Theater proprietors - 
 
 Act October 32, 1914 — 
 
 Bankers 
 
 Billiard-room proprietors 
 
 Bowling-alley proprietors 
 
 Brokers 
 
 Cigar and cigarette dealers - 
 
 Circus proprietors.' 
 
 Commercial brokers ; 
 
 Commission merchants - 
 
 Concert-hall proprietors 
 
 Customhouse brokers 
 
 Leaf tobacco deaJers - 
 
 Museum proprietors 
 
 Pawnbrokers - 
 
 PenaltifiSy nonpayment of tax 
 
 Pool-room proprietors 
 
 Postal savings banks, exemption 
 
 Public Kchibition proprietors, or agents 
 
 Savings banks, exemption 
 
 Snuff dealers 
 
 Theatre proprietors — - 
 
 Tobacco^ealers and mEhgfii^lSi^tiy.MjCrOSOft.®. 
 
 Section. 
 
 Page. 
 
 100-1(7) 
 
 180 
 
 1001(12) 
 
 181 
 
 1001(7) 
 
 ISO 
 
 1001(5) 
 
 180 
 
 1002 
 
 182 
 
 1003 
 
 18': 
 
 407 
 
 842 
 
 409 
 
 843 
 
 407 
 
 8-12 
 
 407 
 
 842 
 
 407 
 
 841 
 
 4or 
 
 842 
 
 407 
 
 842 
 
 407 
 
 841 
 
 407 
 
 841 
 
 407 
 
 841 
 
 407 
 
 842 
 
 407 
 
 842 
 
 407 
 
 841 
 
 407 
 
 841 
 
 407 
 
 841 
 
 407 
 
 841 
 
 407 
 
 841 
 
 407 
 
 841 
 
 407 
 
 842 
 
 407 
 
 842 
 
 407 
 
 842 
 
 407 
 
 841 
 
 407 
 
 841 
 
 407 
 
 841 
 
 407 
 
 842 
 
 407 
 
 841 
 
 407- 
 
 841, 842 
 
 409 
 
 843 
 
 409 
 
 843 
 
 407 
 
 842 
 
 409 
 
 843 
 
 407 
 
 841 
 
 407 
 
 842 
 
 407 
 
 841 
 
 3(1) 
 
 769 
 
 3(9) 
 3(9) 
 
 771 
 
 771 
 
 3(2) 
 
 770 
 
 4 
 
 772 
 
 3(7) 
 3(4) 
 
 771 
 
 770 
 
 3(10> 
 
 771 
 
 3(6) 
 
 770 
 
 3(5) 
 
 770 
 
 4 
 
 772 
 
 3(6) 
 
 770 
 
 3(3) 
 
 770 
 
 4 
 
 773 
 
 3(9) 
 
 771 
 
 3(1) 
 
 769 
 
 3(8) 
 3(1) 
 
 771 
 
 769 
 
 4 
 
 772 
 
 3(6) 
 
 770 
 
 4 
 
 772 
 
1000 INDEX. 
 
 OFFENSES. (See Penalties.) Section. Page. 
 
 Completion in judicial district other than one in which 
 
 begun (Act Mar. 3, 1911) 42 638 
 
 Particular offenses. {See specific heads.) 
 OFFICE EXPENSES— 
 
 Allowance for 8148 76 
 
 (Act Feb. 8, 1875) 12 76 
 OPFICEBS— 
 
 Accounts 3622, 3623 663, 666 
 
 Transmittal ..: ....(Act July 31, 1894) 12 665 
 
 Administration of oaths 3165 95 
 
 Allowance, extra 1764, 1765 700 
 
 Application of laws imposing punishment on internal 
 revenue officers to certain other classes of persona (Act 
 
 Feb. 8,1875) 23 101 
 
 Bonds, filing, examination, renewal, etc.. (Act Mar. 2, 1895) 5 617 
 
 Limitation upon liability of sureties. (Act Aug. 8, 1888) 2 618 
 Notice to obligors of deficiency in accounts (Act Aug. 
 
 8,1888) 1 618 
 
 Period of liability covered (Act Mar. 2, 1895) 5 618 
 
 Premiumsoa (Act Aug. 5, 1909) 616 
 
 Bribery (Act Mar. 4, 1909) 39 675 
 
 Acceptance of bribes (Act Mar, 4, 1909) 117 676 
 
 Compensation, double salaries 1763 699 
 
 (Act May 10, 1916) 6 701 
 
 Extra services 1764 700 
 
 Restriction on payment 1790 703 
 
 Services rendered person in matter before departments 
 
 (Act Mar. 4, 1909) 113 702 
 
 Contributions, political purposes (Act Aug. 15, 1876) 6 703 
 
 Soliciting, etc: 1784 703 
 
 Disbursing officers. {See Disbuesing officeks and 
 
 AGENTS.) 
 
 Disclosure of information acquired in discharge of official 
 
 duties 3167 96 
 
 (Act Aug. 5, 1909) 38 727 
 
 (Act June 17, 1910) 728 
 
 Dismissal, guilt of specified crimes or misconduct as ground 
 
 for 3169 98 
 
 Interest in manufacture of tobacco, etc., or in produc- 
 tion, etc., of distilled spirits 3168 98 
 
 District attorneys, defense by 771 658 
 
 District of Columbia, detail to duty in . . (Act June 22, 1906) 6 696 
 Embezzlement. {See Embezzlement.) 
 
 Entering premises where objects of taxation are kept 3177, 3180 110, 111 
 
 Expenses where sent away as witnesses 850 701 
 
 Falsely assuming to be Government officer (Act Mar. 4, 1909) 32, 66 675 
 
 Fees, sale of real estate for taxes 3197 122 
 
 Income taxes, compensation of United States officers (Act 
 
 Feb. 24, 1919) 213(o) 481 
 
 Interest in manufacture of tobacco or in production, etc., of 
 
 distilled spirits 3168 98 
 
 Mileage 850 701 
 
 rAct June 16, 1874) 701 
 
 Number allowed in commission (Act July 7, 1884) 1 90 
 
 Obstructing in performance of duties 3177 1 10 
 
 Penalty (Act Mar. 4, 1909) 140 674 
 
 Prosecuting claims against United States 190 703 
 
 (Act Mar. 4, 1909) 109 702 
 
 Regulations governing, duty of Commissioner 3215 134 
 
 Removal of suits against, to United States courts (Act Mar. 
 
 3,1911) 33 640 
 
 Reports, compensation in case of failure to make 3147 76 
 
 Failure to make (Act Mar. 4, 1909) 101 671 
 
 Seizure of property 3166 96 
 
 Soldiers and sailors, preference in appointment 1754 693 
 
 Digitized by M;aS/ito*c#®.i5, 1876) 3 693 
 
INDEX. 
 
 1001 
 
 OFFICERS— Continued. 
 
 Statement of fees, etc., received 
 
 Suit for damages for injuries in discharge of duty 
 
 Trading in property, funds, etc., of United States 
 
 (Act Mar. 4, 1909) 
 Traveling expenses 
 
 (Act June 16, 1874). 
 Voluntary service, acceptance (Act May 1, 1884) . 
 
 Ollr- 
 
 Excess profits tax, rate in case of sale of well (Act Feb. 24, 
 
 1919) 
 
 Income taxes, depletion and depreciation allowance (Act 
 
 Feb. 24, 1919) 
 
 Sui'tax rate in case of bona fide sale of wells (Act Feb. 
 
 24, 1919) 
 
 Transportation tax. {See Transpohtation tax.) 
 OliEOMABaARINE (Act Aug. 2, 1886)— 
 
 Appeal from Commissioner's decision 
 
 Artificial coloring 
 
 Assessment of tax 
 
 Board of appeal 
 
 Bonds, manufacturers 
 
 Books, manufacturers J 
 
 Wholesale dealer (Act May 9, 1902) 
 
 Branding 
 
 Caution labels on packages 
 
 Chemists, employment, etc 
 
 Commissioner, decision as to what substances are taxable. . . 
 
 Date act effective 
 
 (Act May 9, 1902) 
 Definition, manufacturer or dealer 
 
 Oleomargarine 
 
 Destruction of empty packages 
 
 Export 
 
 Forfeiture, factory in case of fraud 
 
 Failure to comply with law 
 
 Recovery 
 
 Unstamped packages and deleterious oleomargarine . . . 
 
 Imports 
 
 Inventories 
 
 Labels on packages - 
 
 Microscopists, emplojrment, etc 
 
 Notices 
 
 Packing, manner 
 
 Penalties, buying, selling, etc., of empty stamped packages. 
 
 Customs officials permitting violation of law 
 
 Failure to comply with law 
 
 False branding 
 
 Imported oleomargarine sold without proper stampsi- . . 
 
 Labels, neglecting to affix 
 
 Packing contrary to law - . 
 
 Purchasing from manufacturers not having paid special 
 
 tax - 
 
 Improperly stamped or branded oleomargarine 
 
 Recovery 
 
 Removing labels 
 
 Stamps, marks, or brands 
 
 Sale in other than prescribed packages 
 
 Stamps on empty packages, neglecting to destroy 
 
 Rate of tax 
 
 Regulations 
 
 Signs, manufacturers 
 
 Special tax on manufacturers and dealers. 
 
 Penalty for f-^^-^^^f^^^^spM :::::::: 
 
 Section. 
 
 3158 
 
 3171 
 
 244 
 
 103 
 
 850 
 
 Page. 
 
 91 
 101 
 702 
 671 
 701 
 701 
 698 
 
 337 524 
 
 214, 234 485, 499 
 
 211 481 
 
 14 
 8 
 9 
 
 14 
 5 
 5 
 6 
 
 6, 11, lej 
 
 Penalty for purcha! 
 
 7 
 
 14 
 
 14 
 
 21 
 
 7 
 
 3 
 
 2 
 
 13 
 
 16 
 
 17 
 
 18 
 
 19 
 
 15 
 
 10 
 
 5 
 
 7 
 
 14 
 
 5,7 
 
 6 
 
 13 
 
 10 
 
 18 
 
 6 
 
 10 
 7 
 6 
 
 12 
 
 11 
 
 19 
 7 
 
 15 
 6 
 
 13 
 S,10 
 
 20 
 5 
 3 
 4 
 
 12 
 
 435 
 433 
 434 
 436 
 431 
 431 
 443 
 431, 
 435, 436 
 433 
 435 
 435 
 438 
 443 
 172 
 430 
 435 
 436 
 437 
 437 
 438 
 436 
 434 
 431 
 433 
 435 
 
 431. 433 
 431 
 435 
 434 
 437 
 431 
 434 
 433 
 431 
 
 435 
 435 
 438 
 433 
 436 
 432 
 435 
 
 433. 434 
 438 
 431 
 172 
 
 160, 431 
 435 
 
1002 USTDEX. 
 
 OIcEOMABGARINE (Act Aug. 2, 1886)— Continued. Scotioa. P^e. 
 
 Stamps 8-11 433^35 
 
 State, etc., laws applicable... (Act May 9, 1902) X 430 
 
 Tobacco and snufi, provisioiis relative to aiamps applicable . S 433 
 OPIUM— 
 
 Absence of tax-paid stamps as prima facie evidence of viola- 
 tion of law (Act Dec. 17, 1914) 1 418 
 
 Alaska (Act Dec. 17, 1914) 2 421 
 
 Applicability of existing laws (Act Dec. 17, 1914) 1, 7 419, 423 
 
 Appointment of agents, deputy collectors, etc. (Act Dec. 17, 
 
 1914) 10 425 
 
 Appropriation (Act Dec. 17, 1914) 11 425 
 
 (Act July 3, 191S) 1 59 
 
 Bonds, manufacturer of smoking opium. (Act Jan. 17,1914) 1,2 413 
 
 Books, manufacturers, etc (Act Dec. 17, 1914) 1 419 
 
 Manufacturers of emoking opium (ActJahH. 17,1914) 2 413 
 
 Burden of proof , exemptions (Act Dec. 17, 1914) S 423 
 
 CanalZone (Act Dec. 17, 1914> 2 421 
 
 Carriers, unlawful shipmen'-s, (Act Dec. 17, 1914) 4 422 
 
 Certified copies of statemeilts, etc (Act Dec. 17, 1914) 5 423 
 
 Certified list of names of dealers (Act Dec. 17, 1914) 5 423 
 
 Citizenship of manufacturer of smoking opium (Act Jan. 17, 
 
 1914) 1 413 
 
 Confiscation (Act Feb . 24, 1919) 1008 427 
 
 Construction of law (Act Dec. 17, 1914) 12 425 
 
 Decocoainized coca leaves (Act Dec. 17, 1914) 6 423 
 
 Destruction, drugs (Act Feb. 24, 1919^ 1008 427 
 
 Unstamped smoking opium (Act Jan. 17, 1914) 5 414 
 
 Duplicate purchase orders (Act Dec. 17, 1914) 2 420 
 
 Employees of registered manufacturer , etc . , registration (Act 
 
 Dec. 17, 1914). _ ._ _ 1 418 
 
 Exemptions, drugs dispensed to patients in certain cases 
 
 (Act Dec. 17, 1914) 2 420 
 
 Drugs shipped to foreign country. . . (Act Dec. 17, 1914) 2 420 
 
 Registration, etc (Act Dec. 17, 1914) 1 418 
 
 Sales to Army, Navy, Public Health Service, etc. (Act 
 
 Dec. 17, 1914) 2 421 
 
 Exportation (Act Dec. 17, 1914) 2 420 
 
 Forfeitures (ActFeb. 24, 1919) 1008 427 
 
 Unstamped packages (Act Dec. 17, 1914) 1 419 
 
 Unstamped smoking opium (Act Jan. 17,1914) 5 414 
 
 Forms (Act Dec. 17, 1914) 2 421 
 
 Hawaii (Act Dec. 17, 1914) 2 421 
 
 Imports (Act Dec. 17, 1914) 1 417 
 
 Importer defined (Act Dec. 17, 1914) 1 417 
 
 Inspection of order forms, etc (Act Dec. 17, 1914) 5 422 
 
 Insular possessions (Act Dec. 17, 1914) 2 421 
 
 Inventories, manufacturers of smoking opium (Act Jan. 17, 
 
 1914) 2 413 
 
 Manufacturer defined (Act Dec. 17, 1914) i 417 
 
 Manuiacturerofsmokingopium.defiiied.(Act Jan. 17, 1914) 1 413 
 Medical purposes, delivery of forfeited opium for (Act Feb. 
 
 24,1919) 1008 427 
 
 ]Srotices,manufacturersof smoking opium (Act Jan. 17,1914) 2 413 
 Numbers, affixing to factories manufacturing smoking opium 
 
 (Act Jan. 17, 1914) 2 413 
 
 Orders, purchase (Act Dec. 17, 1914) 2, sj ^,-^ f^^^ 
 
 Payment of tax (Act Dec. 17, 1914) 1 '4I8 
 
 Penalties, disclosing information in sta.tCTients, etc. (Act 
 
 Dec. 17, 1914) 5 423 
 
 Violation of law (Act Dec. 17, 1914) 9 423 
 
 (Act Jan. 17, 1914) 5 414 
 
 Person defined (Act Dec. 17, 1914) 1 418 
 
 Philippine Islands (Act Dec. 17, 1914) 2 421 
 
 Physicians, dispensing drugs to patients. (Act Dec. 17, 1914) 2 420 
 
 Placeofbusinessof manufacturer, etc. ..(Act Dec. 17, 19141 1 418 
 
 Digitized by Microsoft® 
 
INDEX. 
 
 1003 
 
 OPnJM— Continued. 
 
 Porto Rico (Act Dec. 17, 1914) 
 
 Possession of drugs unlawful, when (Act Dec. 17, 1914) 
 
 Preparations not within scope of act (Act Dec. 17, 1914) 
 
 Prescriptions (Act Dec. 17, 1914) 
 
 Preservation of prescriptions ^Act Dec. 17, 1914 1 
 
 Purchase orders (Act Dec. 17, 1914) 
 
 Producer defined (Act Dec. 17, 1914) 
 
 Purchase orders required (Act Dec. 17, 1914) 
 
 Rate of tax (Act Dec. 17, 1914) 
 
 Smoking opium (Act Jan. 17, 1914) 
 
 Records, manufacturers, etc (Act Dec. 17, 1914) 
 
 Physicians (Act Dec. 17, 1914) 
 
 Registration, dealers, importers, etc (Act Dec. 17, 1914) 
 
 Repeal of former law (Act Jan. 17, 1914) 
 
 Retail dealer defined (Act Dec. 17, 1914) 
 
 Returns, manufacturers, etc (Act Dec. 17, 1914) 
 
 Manufacturers of smoking opium (Act Jan. 17, 1914) 
 
 Rules and regulations (Act Dec. 17, 1914) 
 
 Scientific purposes, delivery of forfeited opiimi for (Act Feb . 
 
 24, 1919) 
 
 Seizures (Act Feb. 24, 1919) 
 
 Unstamped packages (Act Dec. 17, 1914) 
 
 Shipments unlawful, when (Act Dec. 17, 1915) 
 
 Signs, manufacturers of smoking opium. (Act Jan. 17, 1914) 
 
 Special tax, manufacturers, etc (Act Dec. 17, 1914) 
 
 Stamps (Act Dec. 17, 1914) 
 
 Smoking opium (Act Jan. 17, 1914) 
 
 Statement, drugs received (Act Dec .17, 1914) 
 
 Unknown owners, seizure of drugs (Act Feb . 24, 1919) 
 
 Wholesale dealer defined (Act Dec. 17, 1914) 
 
 jctiou. 
 
 Page. 
 
 2 
 
 421 
 
 8 
 
 423 
 
 6 
 
 423 
 
 1,2,5 
 
 419, 420, 
 
 
 422 
 
 2 
 
 420 
 
 2 
 
 420 
 
 1 
 
 417 
 
 2 
 
 419 
 
 1 
 
 418 
 
 1 
 
 413 
 
 1,6 
 
 419, 423 
 
 2 
 
 420 
 
 1 
 
 417 
 
 6 
 
 414 
 
 1 
 
 417 
 
 1 
 
 419 
 
 2 
 
 413 
 
 1 
 
 419 
 
 1008 
 
 427 
 
 1008 
 
 427 
 
 1 
 
 419 
 
 4 
 
 422 
 
 9 
 
 413 
 
 i 
 
 417 
 
 1 
 
 41S 
 
 3,4 
 
 414 
 
 3 
 
 422 
 
 1008 
 
 427 
 
 1 
 
 417 
 
 P. 
 
 PACKAGES— 
 
 Particular articles. {See specific heads.) 
 PANAMA CANAL— 
 
 Liquor, manufacture, sale, etc., in Canal Zone (Act Oct. 28, 
 
 1919, Title III) 
 
 PABCEI, POST— 
 
 Stamp taxes on packages, penalty for failure to pay (Act 
 
 Feb . 24, 1919) 
 
 Rate (Act Feb. 24, 1919;. 
 
 PARDONS— 
 
 Authority to grant, effect, etc 
 
 PARTNERSHIP S— 
 
 Banks. {See Banks and bankers.) 
 
 Excess profits taxes. {See Excess profits taxes.) 
 
 Income taxes. (See Income taxes.) 
 
 ' 'Person " as including - 
 
 Special tax, liability of persons constituting 
 
 Registration of names of partners 
 
 Surviving partners, liability 
 
 PASSENGER TRANSPORTATION. {See Teanspokta- 
 
 TION TAX.) 
 
 PAWNBROKERS— 
 
 Definition (Act Feb. 24, 1919) 
 
 Special tax (Act Feb. 24, 1919) 
 
 PAYMENT. {See specific heads, also.) 
 
 Assessment of taxes where no payment made 
 
 Certificates of indebtedness receivable for taxes (Act Oct. 3, 
 
 ^^^''^ (Act Feb. '24," 1919) 
 
 Digitized by Microsoft® 
 
 20 
 
 1102 
 
 369 
 
 555 
 561 
 
 657 
 
 3140 
 3234 
 3233 
 
 3244(5) 
 
 70 
 155 
 154 
 171 
 
 1001(2) 
 1001(2) 
 
 179 
 179 
 
 3182 
 
 112 
 
 1010 
 1314 
 
 131 
 132, 631 
 
1004 INDEX. 
 
 PAYMENT— Continued. Section. 
 
 Certified checks, receipt in payment of taxes (Act Mar. 2, 
 
 1911) 130 
 
 (Act Mar. 3, 1913) 131 
 
 Collections, into Treasury daily , 3210 129 
 
 (Act May 10, 1916) 1 129 
 
 Fractional part of cent, disregard (Act Feb. 24, 1919) 1313 , 631 
 
 Notice to pay tax 3184, 3185 116, 117 
 
 Particular taxes. (See specific heads.) 
 
 Penalty for nonpayment of tax 3184 116 
 
 Time for payment of tax 3185 117 
 
 Uncertified checks receivable for taxes. (Act Oct. 3, 1917) 1010 131 
 
 (ActFeb. 24, 1919) 1314 132,631 
 
 PEDDLERS— 
 
 Tobacco. (See Tobacco.) 
 PENALTIES. (See specific heads, also.) 
 
 Accepting bribes (Act Mar. 4, 1909) 117 676 
 
 Appeal to Commissioner as condition precedent to suit to 
 
 recover back : 3226 146 
 
 Application of laws imposing punishment on internal reve- 
 nue officers to certain other classes of persons (Act Feb. 
 
 8, 1875) 
 
 Appropriations, excessive expenditures 
 
 Bribery 3169,3170 
 
 (Act Mar. 4, 1909) 
 
 CaiTying away papers relating to claims, etc. (Act Mar. 4, 
 
 1909) 
 
 Public records (Act Mar. 4, 1909) 
 
 Clerks or employees, carrjdng on trade or business in prop- 
 erty, etc., of United States 
 
 Political contributions, making (Act Aug. 15, 1876) 
 
 Prosecution of claims against United States (Act Mar. 4, 
 
 1909) 
 
 Beceiving compensation for services rendered in matter 
 
 before department (Act Mar. 4, 1909) 
 
 Collection 
 
 Collectors, charged with money collected for 
 
 Duty to prosecute for 
 
 Commissioner to sanction suits for 
 
 C'ompromises by Commissioner 
 
 Conspiracy to defraud (Act Mar. 4, 1909) 
 
 Preventing persons from holding office, etc. (Act Mar. 4, 
 
 1909) 
 
 Continuance of suits or criminal prosecutions 
 
 Contracts with United States, failure to file with Commis- 
 sioner (Act Feb. 24, 1919) 
 
 Costs, defendant's liability 
 
 Suits for penalties 
 
 Counterfeiting bid, bond, public record, etc. (Act Mar. 4, 
 
 1909) 
 
 United States securities and stamps. (Act Mar. 4, 19Q9) 
 Delinquency in collection, etc., of taxes. (Act Feb. 24, 1919) 
 
 Destroying public records (Act Mar. 4, 1909) 
 
 Disclosure of certain information 
 
 Discontinuance of prosecutions 
 
 District attorney, accepting or demanding gift, etc., for 
 
 compromise of violation of law 
 
 Duty to prosecute proceedings for 
 
 Embezzlement. (See Embezzlement.) 
 
 Exclusive jurisdiction of United States courts (Act Mar. 3, 
 
 1911) 
 
 Extortion by informers (Act Mar. 4, 1909) 
 
 Internal revenue officers or agents 
 
 Forgery of bid, bond, public record, etc. . . (Act Mar. 4, 1909) 
 
 Digitized by Microsoft® 
 
 23 
 
 101 
 
 3679 
 
 687 
 
 69, 3170 
 
 98, 101 
 
 39, 117 
 
 675, 676 
 
 40 
 
 678 
 
 128, 129 
 
 678 
 
 244 
 
 702 
 
 6 
 
 703 
 
 109 
 
 702 
 
 113 
 
 702 
 
 3176 
 
 108 
 
 3218 
 
 136 
 
 3213 
 
 132 
 
 3214 
 
 134 
 
 3229 
 
 149 
 
 37 
 
 677 
 
 21 
 
 677 
 
 3231 
 
 151 
 
 1408 
 
 633 
 
 974 
 
 646 
 
 969 
 
 646 
 
 28 
 
 679 
 
 147, 148 
 
 680 
 
 1308 
 
 628 
 
 128, 129 
 
 678 
 
 3167 
 
 96 
 
 3230 
 
 151 
 
 3170 
 
 101 
 
 838 
 
 659 
 
 256 
 
 637 
 
 145 
 
 677 
 
 3169 
 
 98 
 
 28 
 
 679 
 
INDEX. 1005 
 
 PENALTIES— Continued. Section. Page. 
 
 Fraud, disposing of or receiving empty stamped packages, 
 
 etc 
 
 Executing^ documents required by law 
 
 False, fictitious, or fraudulent claims, making or pre- 
 senting (Act Mar. 4 , 1909) 
 
 Falsely assuming to be Government officer (Act Mar. 4, 
 
 1909) 
 
 Possessing property with intent to sell 
 
 Removing or concealing articles with intent to defraud 
 
 United States 
 
 Interest in certain manufacturing 
 
 Jurisdiction of suits to enforce .?Act Mar. 3, 1911) 
 
 Larceny of personal property of United States (Act Mar. 4, 
 
 1909) 
 
 Limitation of prosecutions for 
 
 Name of United States, suits brought in 
 
 Nolle prosequi of suits or prosecutions 
 
 Nonpayment of tax ni85 "^ 
 
 Obstructing or hindering officer 
 
 Service of writ ^Act Mar. 4, 1909^ 
 
 Official envelopes, unlawful use (Act Mar. 3, 1877) 
 
 (Act Mar. 3, 1883) 
 Particular taxes, violation of law relating to. [See specific 
 
 heads.) 
 Pajrment of judgments and moneys recovered or received 
 
 for, to collectors 
 
 Penalty envelopes, unlawful use (Act Mar. 3, 1877) 
 
 (Act Mar. 3, 1883) 
 
 Perjuror (Act Mar. 4, 1909) 
 
 Receiving stolen property (Act Mar, 4, 1909) 
 
 Refund, Commissioner's authority 
 
 Time for filing claims 
 
 Remission \h2^ 
 
 Rescue of prisoners (Act Mar. 4, 1909) 
 
 Seized property 
 
 (Act Mar. 4, 1909) 
 
 Resisting officer in serving writ (Act Mar. 4, 1909) 
 
 Returns, failure to make 
 
 False or fraudulent 
 
 Robbery of personal property of United States (Act Mar. 
 
 4, 1909) 
 
 Stamps, issuance before pay^ment (Act Mar. 1, 1879) 
 
 Statement of fees, commissions, etc., omitting to render — 
 
 Stealing public property (Act Mar. 4, 1909) 
 
 Suits to recover where erroneously collected, time 
 
 Summons, failure to obey _- ; - 3175, 3179 
 
 Witnesses in proceedings to recover, persons interested in 
 
 share 5295 655 
 
 PEBFUMEBY— 
 
 Distilled spirits, withdrawal by manufacturers of perfumery 
 
 (Act Mar. 1, 1879) 20 610 
 
 Excise tax (Act Feb. 24, 1919) 907 549 
 
 PEBISHABLE PBOPEBTY— 
 
 Seizure and sale 3459 599 
 
 PEBJTJBY— 
 
 National prohibition act, proceedings for violation of (Act 
 
 Oct. 28, 1919, Title II) 
 
 Penalty... fAct Mar. 4, 1909) 
 
 Search warrant, procurement (Act June 15, 1917) 
 
 Statement as to amo.unt of fees, etc., received 
 
 Digitized by Microsoft® 
 
 3455 
 
 596 
 
 3451 
 
 594 
 
 35 
 
 680 
 
 32,66 
 
 675 
 
 3452 
 
 594 
 
 3450 
 
 593 
 
 3168 
 
 98 
 
 24,43 
 
 636, 638 
 
 46 
 
 679 
 
 1047 
 
 653 
 
 919 
 
 638 
 
 3230 
 
 151 
 
 3184, 
 
 116, 
 
 3185, 3187 
 
 117, 119 
 
 3177 
 
 110 
 
 140 
 
 674 
 
 5 
 
 691 
 
 2 
 
 691 
 
 3216 
 
 135 
 
 5 
 
 691 
 
 2 
 
 691 
 
 125- 
 
 674 
 
 47,48 
 
 679 
 
 3220 
 
 137 
 
 3228 
 
 148 
 
 3220, 
 
 137, 
 
 5292, 5293 
 
 654, 655 
 
 143 
 
 674 
 
 3177 
 
 110 
 
 65,71 
 
 674, 675 
 
 140 
 
 674 
 
 3176 
 
 108 
 
 3176 
 
 108 
 
 46 
 
 679 
 
 1 
 
 100 
 
 3158 
 
 91 
 
 47 
 
 679 
 
 3227 
 
 147 
 
 3175, 3179 
 
 107, 111 
 
 30 
 
 362 
 
 125 
 
 674 
 
 19 
 
 604 
 
 ;i58 
 
 91 
 
1006 
 
 INDEX. 
 
 PEBMITS— Seetioa. 
 
 Alcohol, removal from bond for scientific pui'poses 3297 
 
 Distilled spirits, removal for exportation 3330 
 
 Fermented liquors, removal 3345 
 
 Industrial alcohol plant, operation of (Act Oct. 28, 1919, 
 
 Title III) 2, 7 
 
 Warehouse, eatabli8hment«,(Act Oct. 28, 1919, Title 111) 3 
 Manufacture of certain articles containing liquor, revoca- 
 tion (Act Oct. 28, 1919, Title II) & 
 
 Manufacture, Balej.etc., of liquor (Aet Oct. 28,. 1919, Title 11) 6 
 Penalty for violating permit as to liquors (Act Oct. 28, 1919, 
 
 Title 11) 29 
 
 Purchase and use of liquor prescribed by physician (Act 
 
 Oct. 28, 1919, Titlell) 6,11 
 
 Revocation of permit to manufacture, sell, etc., liquor 
 
 (ActOet. 28, 1919, Titlell) 5,9 
 
 Stills, removal of. , 32,65 
 
 Storage of liquor (Act Oct. 28, 1919, Title 1I> 37 
 
 Tobacco, etc. , removal for exportation 3285 
 
 PERSON— 
 
 Definition | '^'Im} 
 
 (Act Feb. 24, 1919) 1, 1308(rf) 
 PEBSON-AL SERVICE COBPOKATIONS (Act Feb. 24, 
 1919)— 
 
 Definition 200 
 
 Excess profits tax 303, 335(a) 
 
 Income taxes, credits. - 218 
 
 Dividends 201 
 
 Exemption 231 
 
 Fiscal year with different rates. 205 
 
 Beturna 239 
 
 Dividend payments 254 
 
 PHARMACISTS. (See Drugs and druggists.) 
 PHILIPPINE ISLANBS— 
 
 Certiorari to Supreme Court of, limitations (Act Sept, 6, 
 
 1916) 6 
 
 Drawback on articles sMppjed to (Act Mar. 8, 1902) 6 
 
 (Act Mar. 4, 1915) 
 
 Exports (ActOct. 3, 1913) IV(C) 
 
 Imports (Act Oct. 3, 1913V IV 
 
 Income taxes, levy, assessment, etc (Act Feb. 24, 1919) 261 
 
 Internal taxes (Act Aug. 29, 1916) 5 
 
 Laws of United States applicable to (Act Aug. 29, 1916) 5 
 
 Merchandise shipped from, tax on (Act Mar. 8, 1902) 6 
 
 (Act Oct. 3, 1913> IV 
 
 Shipped to, exemption from tax (Act Mar. 8, 1902) 6 
 
 (Act Oct. 3, 1913) IV 
 
 Refund on articles shipped to (Act Mar. 8, 1902) 6 
 
 Stamps, tax payable by (Act Mar. 8, 1902) 6 
 
 (Act Oct. 3, 1913) IV 
 PHOSPHOROUS MATCHES. (S<!« White PHosPHoaotrs 
 
 MATCHES.) 
 
 PHYSICIANS ANB SURGEONS— 
 
 Excise tax on surgical instruments (Act Feb. 24, 1919) 905 
 
 Prescriptions for liquor (Act Oct. 28, 1919, Title II) 6-8 
 
 Opium (Act Dec. 17, 1914) 1,2,5/ 
 
 PIPE LINES. 
 
 Transportation tax. (See Tbanspobtatign' tax.) 
 
 PLAYING- CARDS (Act Aug. 27, 1894)— 
 
 Assessment of tax 47 
 
 Demand for payment of tax 47 
 
 Exports 43 
 
 Imports 46 
 
 Digitized by Microsoft® 
 
 Pagsf. 
 257 
 281 
 313 
 
 366, 367 
 366 
 
 352 
 353 
 
 361 
 
 353, 356 
 
 3S2, 355 
 219 
 364 
 390 
 
 70, 104 
 626, 629 
 
 474 
 515, 523 
 489 
 474 
 497 
 477 
 503 
 508 
 
 651 
 622-624 
 625 
 756 
 624, 756 
 511 
 624 
 624 
 623 
 623 
 622 
 623 
 622 
 623 
 623 
 
 547 
 
 353-355 
 
 419, 
 
 420,422 
 
 573 
 573 
 572 
 573 
 
IKDEX. 1007 
 
 PLAYING CARDS (Act Aug. 27, 1894)— Continued. secUmt. Page. 
 
 Manufacturers, who deemed to be 46 573 
 
 Penalties, counterfeitiug, defacing, etc., stamps 42 571 
 
 Failure of manufacturer to register 40 570 
 
 Manufacturer refflo%-ing or reusing stamps, etc 44 572 
 
 Noncancellation of stamp 39 570 
 
 Removal orsale of cards witliouthavingstampsafflxed.. 43 572 
 
 Selling, etc., without stamp affixed 45 573 
 
 Rate of tax 38 569 
 
 (Act Feb. 24, 1919) 1100 574 
 
 Registration of manufacturer 40 570 
 
 Regulations 88, 39, 43^ ^^^.f^^^ 
 
 Stamps, affixing 39,46 57o| 573 
 
 Cancellation... 39 570 
 
 Counterfeiting, etc 42 571 
 
 Furnishing to registered manufacturers, etc 41 570 
 
 Payment of tax by 38,39 569,570 
 
 Reusing, etc 44 572 
 
 Stamp taxes, imposition and rate (Act Feb . 24, 1919) 561, 574 
 
 Payment by vendee or lessee (Act Feb . 24, 1919) 1312 630 
 
 Penalty for failure to pay (Act Feb . 24, 1919) 1102 555 
 
 PLEASTXRE BOATS— 
 
 Excise tax ...(Act Feb. 24, 1919) 900(20) 544 
 
 Special tax on use of (Act Feb. 24, 1919) 1003 183 
 
 PLEASURE CLUBS— 
 
 Income taxes, exemption (Act Feb. 24, 1919) 231 497 
 
 POLITICAL CONTBIBTJTIONS— 
 
 Clerks or employees making (Act Aug. 15, 1876) 6 703 
 
 POBTER. {See Fekmbnted uqtjoks.) 
 PORTO RICO— 
 
 Deputy collector f Act June 29, 1906) 1, 2 620, 621 
 
 Drawback on articles shipped to (Act Mar. 4, 1915) 625 
 
 Exportsto .' (ActOct. 3,1913) IV(D) 621,757 
 
 Income taxes, levy, assessment, etc (Act Feb. 24, 1919) 261 511 
 
 Laws of United States applicable to (Act Apr. 12, 1900) 14, 41 620 
 
 (Act Mar. 2,1917) 9 621 
 
 Merchandise shipped from, tax on (Act Apr. IZ, 1900) 3, 41 619, 620 
 
 Shipped to, exemption from tax. . .(Act Oct. 3,1913) IV 621 
 
 Stamps (Act Tune 29, 1906) 1 620,621 
 
 POSTAGE— 
 
 Allowance to collectors for ". (Act Feb . 8, 1875) 13 79 
 
 Government matter (Act Mar. 3,1877) 5,6 691 
 
 Parcel post, stamp tax on packages, penalty for failure to 
 
 pay-------- (Act Feb. 24, 1919) 1102 555 
 
 Stamp tax on packages, rate (Act Feb. 24, 1919) 561 
 
 POSTMASTERS— 
 
 Stamps, furnishing for sale by (Act Feb . 24, 1919) 1106 556 
 
 POSTMASTER GENERAL— 
 
 Stamps, authority and duties as to furnishing to postmasters 
 
 (Act Feb. 24, 1919) 1106 556 
 
 POWER BOATS— 
 
 Special tax on use of (Act Feb. 24, 1919) 1003 183 
 
 Transportation tax. {See Tbansportation tax.) 
 POWER OF APPOINTMENT— 
 
 Estate tax, property passing under power (Act Feb . 24, 1919) 402 526 
 POWER OF ATTORNEY— 
 
 Acceptance of legal service, etc., filing by surety company 
 
 (Act Aug. 13, 1894) 2 613 
 
 StamptaxTrate (Act Feb. 24, 1919) 560 
 
 PRACTICE— 
 
 United States courts, cBt^Hm^ f}ytMfewoSt3#@ourts. . . . 914, 916 647 
 
1008 
 
 INDEX. 
 
 PBEMITJMS— 
 
 Income taxes, deduction of deposits returned (Act Feb. 24, 
 
 1919) : 
 
 Deduction of repayments (Act Feb. 24, 1919) 
 
 Payment by fiduciaries, gross income (Act Feb. 24, 1919) 
 Official bonds, execution by surety companies (Act Aug. 5, 
 
 1909) 
 
 PRE SCBIPTIONS— 
 
 Liquor (Act Oct. 28, 1919, Title II) 
 
 Opium (Act Dec. 17, 1914) 
 
 PRESENTS— 
 
 Influencing compromise of violation of law 
 
 Soliciting or receiving from employees by superiors in office. 
 PRESIDENT OF THE UNITED STATES— 
 
 Appointment, collectors 
 
 Commissioner of Internal Revenue. 
 
 Deputy Commissioner 
 
 Solicitor of Internal Revenue '. 
 
 Bonds of certain officers, regulation, etc 
 
 Civil service regulations, authority to prescribe 
 
 Collection districts, establishment 
 
 Proclamation as to use of food products in manufacture of 
 
 liquor during war 
 
 PRICE LISTS— 
 
 Liquor, f umiahing (Act Oct. 28, 1919, Title II) 
 
 PRIORITIES- 
 
 Transmission of Government telegrams 
 
 United States in insolvent estates 
 
 PROBABLE CATTSE— 
 
 Certificate 
 
 Search warrant, retention of property where probable cause 
 
 shown (Act June 15, 1917) 
 
 PROCESS— 
 
 Clerks or employees, acceptance of voluntary service by 
 
 (Act May 1, 1884) 
 
 Power of attorney as to acceptance, filing by surety com- 
 panies (Act Aug. 13, 1894) 
 
 PROCESS OR RENOVATED BUTTER (Act May 9, 
 1902)— 
 
 Bonds, manufacturers 
 
 Books, manufacturers 
 
 Wholesale dealers 
 
 Date act effective ; 
 
 Definition, butter 
 
 Manufacturer or dealer 
 
 Process butter 
 
 Renovated butter 
 
 Inspection 
 
 Inventories 
 
 Marking 
 
 Notices, manufacturers 
 
 Penalties, failure to mark and brand as required 
 
 Rate of tax 
 
 Regulations 
 
 Returns, manufacturers 
 
 Wholesale dealers 
 
 Signs, manufacturers 
 
 Special tax on dealers or manufacturers 
 
 Penalty for carrying on business without paying 
 
 Stamps 
 
 State, etc., laws applicable 
 
 Tobacco and snuff, provisions relative to stamps applicable. 
 
 Digitized by Microsoft® 
 
 Section. 
 
 Page. 
 
 234 
 
 500 
 
 234 
 
 500 
 
 213 
 
 482 
 
 
 616 
 
 6-8 
 
 353-355 
 
 1,2,5- 
 
 419, 
 420, 422 
 
 3169, 3170 
 
 98, 101 
 
 1784 
 
 703 
 
 3142 
 
 71 
 
 319 
 
 51 
 
 322 
 
 55 
 
 349 
 
 56 
 
 3639 
 
 667 
 
 1753 
 
 693 
 
 3141 
 
 71 
 
 17 
 
 201 
 
 357 
 
 5266 
 
 692 
 
 3466 
 
 685 
 
 970, 989 
 
 654 
 
 16 
 
 604 
 
 
 698 
 
 2 
 
 613 
 
 4 
 
 439 
 
 4 
 
 439 
 
 6 
 
 443 
 
 7 
 
 443 
 
 4 
 
 438 
 
 4 
 
 174 
 
 4 
 
 439 
 
 4 
 
 439 
 
 5 
 
 441 
 
 4 
 
 439 
 
 5 
 
 442 
 
 4 
 
 439 
 
 5 
 
 442 
 
 4 
 
 440 
 
 5 
 
 442 
 
 4 
 
 439 
 
 6 
 
 443 
 
 4 
 
 439 
 
 4 
 
 174 
 
 4 
 
 161 
 
 4 
 
 440 
 
 1 
 
 430 
 
 4 
 
 440 
 
INDEX. 
 
 1009 
 
 PROHIBITION. {See National pboiiibition.) 
 PROMISSORY NOTES— 
 
 Stamp taxes, rate (Act Feb. 24, 1919) 
 
 PROPERTY— 
 
 Replevin 
 
 Rescue in case of seizure by internal revenue officers (Act 
 Mar. 4, 1909) 
 
 Rights in liquor or property designed for manufacture of 
 liquor (Act Oct. 28, 1919, Title II) 
 
 Seizure. {See Searches and seizubes.) 
 
 Trading in property of United States 
 
 PROPRIETARY MEDICINES. {See Drugs and drug- 
 gists; Medicinal preparations.) 
 PROTEST— 
 
 Taxes paid under 
 
 PUBLIC AUCTION. {See Auction.) 
 PUBLIC EXHIBITIONS AND SHOWS— 
 
 Admissions, tax on. {See Admissions.) 
 
 Special tax on proprietors or agents (Act Feb. 24, 1919) 
 
 PUBLIC HOLIDAYS— 
 
 District of Columbia 
 
 Exclusion in computing annual leave.. .(Act Feb. 24, 1899) 
 
 Hours of work (Act Mar, 15, 1898) 
 
 PUBLIC MONEYS— 
 
 Section. 
 
 Page. 
 
 
 559 
 
 934 
 
 656 
 
 65,71 
 
 C74, 675 
 
 25 
 
 360 
 
 244 
 
 702 
 
 1001(7) 
 
 993 
 
 4 
 
 r 
 
 Accounts- 
 
 Advances prohibited 
 
 Bonds of persons disbursing, increase. 
 Credits, claim by officer sued 
 
 (Act Aug. 30, 1890) 
 (Act July 31, 1894) 
 
 / 3622,1 
 •\3fi23, 3625/ 
 
 4 
 
 12 
 
 3648 
 
 3639 
 
 957 
 
 [3617, 3620,1 
 
 Deposit in Treasury or with Treasurer { 3621, 3624, i 
 
 13625, 3633J 
 
 Distress warrant against delinquent officer 3625, 3638 
 
 Embezzlement. {See Embezzlement.) 
 
 Entry by custodians of sums received and payments thei;eof . 
 
 Judgment against person accountable for 
 
 Payment into Treasury by officers receiving 
 
 To collectors where recovered as fines and penalties 
 
 Receipts for 
 
 Safely keeping, duty of custodian 
 
 Trading in, forbidden (Act Mar. 4, 1909) 
 
 PUBLIC NUISANCE. {See Nuisance.) 
 PUBLIC PRINTER— 
 
 Annual reports of departments 
 
 _ (Act July 1, 1916) 
 
 Printing of forms, deci^ons, and regulations 
 
 PUBLIC RECORDS. {See Records.) 
 PUBLIC UTILITIES— 
 
 Income taxes, income derived from (Act Feb. 24, 1919) 
 
 Transportation tax. {See Transportation tax.) 
 PUBLICATION— 
 
 Advertisements. {See Advertisements.) 
 Notice by. (5ee Notice.) 
 
 3643 
 957 
 3210 
 3216 
 3621 
 3639 
 103 
 
 196 
 3 
 
 321 
 
 213 
 
 138 
 
 180 
 
 699 
 65 
 64 
 
 663, 660 
 
 663 
 665 
 689 
 667 
 672 
 
 662, 
 663, 666 
 
 666, 667 
 
 667 
 672 
 129 
 135 
 663 
 667 
 671 
 
 67 
 67 
 51 
 
 483 
 
 QUI TAM— 
 
 Proceeding to recover fines, penalties, etc 
 
 140184°— 20 64 
 
 Digitized by Microsoft® 
 
 3213 
 
 132 
 
1010 
 
 INDEX. 
 
 a. 
 
 SADIO MESSAGES— 
 
 Transmission tax. {See Tkan'SPOIItation tax.) 
 
 SAILROADS. (See Cabribes.) Seet-ioii. 
 
 Excess profits tax where under Federal control (Act Feb. 24, 
 
 1919) 301(e) 
 
 Retail dealers in liquors, etc., on passenger trains (Jt. Res. 
 
 May 8, 1876) 
 
 Stamp tax on passage tickets (Act Feb. 24, 1919) 
 
 Transportation tax. (See Tbansportation tax.) 
 
 EEAIi ESTATE— 
 
 Chancery to decree sale of, when 3207 
 
 Commissioner to have charge of, when 3^8 
 
 Fees and charges in seizure cases 3206- 
 
 Sales for taxes 3196-3205 
 
 (ActMar.3,1893) 1,3 
 
 REASSE SSICBNTS— 
 
 Time. 
 
 RECEIPTS— 
 
 Collectors and de{mti«8 to give 
 
 (Act Aug. 27, 1894.) 
 
 Depository of money collected by collector 
 
 Estate tax ." (Act Feb. 24,1919} 
 
 Income taxes, payment of (Act Feb. 24, 1919) 
 
 Legacies, etc. ,_ taxes on. . . .' (Act Apr, 12, 1902_) 
 
 Officer accepting receipt without having paid amount speci- 
 fied therem.. (Act Mar. 4, 1909) 
 
 Paying sum less than provided by law and requiring 
 receipt for amount greater than paid (Act> Mar. 4, 
 
 1909) 
 
 Search warrant, property taken under. .(Act June 15, 1917) 
 Special-tax receipt, evidence of sale of intoxicating liquor 
 
 (Act Feb. 14, 1917) 
 
 InEeuof (Act Feb. 24, 1919) 
 
 Stamps, in lieu of 
 
 Tieasurer of United States, money received 
 
 Warehouse, distilled spirits, purchase and sale (Act Oct. 28, 
 
 1919, Title II) 
 
 RECEIVERS— 
 
 Income tax returns (Act Feb . 24, 1919) 
 
 Jurisdiction of district courts to appoint, to enforce Revenue 
 
 Act of 1918 (Act Feb. 24, 1919) 
 
 RECEIVING STOLEN PROPERTY— 
 
 Penalty (Act Mar. 4,. IQOS) 
 
 RECIPES— 
 
 Manufacture of intoxicating liquor, advertisements, etc. 
 (Act Oct. 28, 1919, Title II) 
 
 RECORDS— 
 
 Charges against persons in classified civil service, etc, (Act 
 Aug. 24, 1912) 
 
 Deeds to real estate sold for taxes 
 
 Destruction, carrying away, etc., penalty (Act Mar. 4, 
 1909) - 
 
 Efficiency of civil service em.pl'oyees. ..(Act Aug, 23, 1912) 
 
 Judgments .- (Act Aug, 1, 1888) 
 
 Liquor, manufacture, sale, etc. (Act Oct. 28, 1919, Title II) 
 Prescriptions of physicians. (Act Oct, 28, 1919, Title II) 
 Transportation by carrier. . .Act Oct, 28, 1919, Title II) 
 
 National prohibition act, inspection of records required by 
 (Act Oct. 28, 1919, Title II) 
 
 Sales for taxes 
 
 Special-tax payers, list of 
 
 Taxpayers (Act Feb. 24, 1919) 
 
 3182 
 
 3183 
 37 
 
 3211 
 407 
 261 
 
 95 
 
 18 
 
 515 
 
 154 
 560 
 
 127 
 
 128 
 
 127 
 
 122-127 
 
 124, 125 
 
 112 
 
 115 
 115 
 130 
 530 
 507 
 705 
 
 670 
 
 86 
 12 
 
 667 
 603 
 
 -26 
 1004 
 3183 
 3621 
 
 185 
 184 
 115 
 663 
 
 3 
 
 351 
 
 239 
 
 503 
 
 1318 
 
 632 
 
 48 
 
 679 
 
 357 
 
 6 
 
 694 
 
 3197 
 
 122 
 
 128, 12» 
 
 678 
 
 4 
 
 694 
 
 1,2 
 
 648 
 
 10 
 
 355 
 
 7 
 
 854 
 
 13 
 
 356 
 
 34 
 
 363 
 
 3203, 3204 
 
 126 
 
 3240 
 
 157 
 
 1305 
 
 627 
 
 Digitized by Microsoft® 
 
INDEX. 1011 
 
 BECREATION CLUBS— Section. Bagfr. 
 
 Incoms taxes, exemption (Act Feb. 24, 1919) 231 497 
 
 RECTIFIED SPIRITS. (^See Distilled spirits.) 
 
 REDEMPTION— 
 
 Real estate sold for taxes {^202^3^M4} 121,126 
 
 Stamps. (A.ct May 12, 1900) '. 552 
 
 RElFUNDS— 
 
 Akohol lost by leakage, etc., tax on (Act Oct. 2S, iai9v 
 
 Title ITl") ., 14 368 
 
 Appropriation , 3i68& 686 
 
 Commissioner of. Internal Revemie, authority 3220 137 
 
 Distilled spirits aceidentaHy destroyed, taxes on 3221-3223 1 42-144 
 
 Estate tax (Act Feb. 24, 1919)f ^^^^'^4^^ ^^^'^mo 
 
 Excess profits tax (Act Feb. 24, 1919) 335 («, e) 523, 524 
 
 Export, taxes collected on. articles sold or leased for (Act 
 
 Feb. 2.4, 1919) 1310 630 
 
 fonf^ 9^4 1 4/7,499, 
 250 Is*' 501,505, 
 
 Legacieft or bequests- for charitable, etc., uses, taxes on 
 
 (Act June 27, 1902) 708 
 
 (Act.Iul>27 1912) 710 
 
 Penalties collected -without authority 3220 137 
 
 Philippine Islands, articles shipped to.. (Act Mai. 8, 1902) 6 622 
 
 Second assessment necessitated because of fraud, etc 3225 146 
 
 Taxes erroneously or illegally assessed or collected. Com- 
 missioner's authority 3220 137 
 
 Time for filing claims. 3228 148 
 
 REGISTRATION. {See Records.) 
 
 Cigar makers 3244(10) 395 
 
 Death, removal, etc., of special-tax payer 3241 I'SS 
 
 ludustiiai alcohol plant...... (ActOct. 28, 1919, Titlelll) 2 366 
 
 Leaf tobacco dealers and peddlers (ActOct. 1, 1890) 26 376 
 
 Opium dealers, importers, etc (Act Dec. 17, 1914) 1 417 
 
 Playing-card manufacturers (Act Aug. 27, 1894) 4G 570 
 
 Special-tax payer's name, place of business, etc 3233 154 
 
 Stamps, transmittal through mail in registered packages 
 
 (Act Aug. 15, 187G) 1 590 
 
 Stills 3258 209 
 
 REGULATIONS— 
 
 Alcohol, eStablishmeiLt of plant to mamifacture,, etc. (Act 
 
 Oct.. 28, 1919, Title ni) 13 368 
 
 Transfer or withdrawal where produced at registered 
 
 plant (ActOct. 28, 1919, Title III) 4, 6, 11 36.6, 368 
 
 Alteration of law necessitating, Commissioner'sauthority... 3447 590 
 
 Ci-vil service, authority of President to prescribe 1753 693 
 
 Commissioner's duties 321 51 
 
 Force and effect 52 
 
 Leave of absence (Act Feb. 24, 1919) 1302- 84 
 
 List - 49 
 
 Receiving certificates of indebtedness and uncertified 
 checks for taixes payable other than by stamp (ActFeb. 
 
 24,1919) 1314 132 
 
 CeEtifiedchecksinpa3?meat of taxes. (Act Mar. 3, 1913) 131 
 
 Uncertified checks in payment oi income and excess 
 
 profitstaxes (Act Oct. 3, 1917) 1010 131 
 
 RevenueActof 1918, Commissioner'sauthority (ActFeb. 24, 
 
 1919\ 1309 629 
 
 Stamps^ safekeeping or illegal use (Act Feb . 24, 1919) 1107 557 
 
 Suits aidaing under internal revenue laws 3215 134 
 
 Digitized by Microsoft® 
 
1012 
 
 INDEX. 
 
 RELEASE — Section. Page. 
 
 Estate tax, lien on property for (Act Feb. 24, 1919) 409 
 
 Property involved in violation of war prohibition act (Act 
 
 Oct. 28, 1919, Title I) 4 
 
 Real estate which has become property of United States. . . 3208 
 
 REMGIOTTS ORGANIZATIONS— 
 
 Admissions tax, exemption (Act Feb . 24, 1919) 800(6) 
 
 Estate tax, deduction of gifts, etc (Act Feb. 24, 1919) 403 
 
 Income taxes, deduction of gifts to (Act Feb. 24, 1919) 214, 219 
 
 Exemption (Act Feb. 24, 1919) 231 
 
 Refund of tax on legacy or bequest for religious purpose (Act 
 
 June 27, 1902) 
 
 (Act July 27, 1912) 
 
 Stamp tax, proxies for voting (Act Feb. 24, 1919) 
 
 Wines for sacramental use (Act Oct. 28, 1919, Title II) 3,6 
 
 REMISSION— 
 
 Comniissioner's authority as to taxes erroneously or illegally 
 
 assessed or collected 3220 
 
 Deficienciesof distillers in certain cases. (Act Mar. 1, 1879) 6 
 
 Distilled spirits accidentally destroyed, taxes on 3221-3223 
 
 Loss by leakage, taxes (Act Dec. 20, 1879) 1, 2 
 
 (Act May 28, 1880) 15 
 
 Forfeitures {5292, M^93 
 
 f 3220, 
 -15292,5293 
 
 3225 
 
 33 
 
 213 
 
 3220 
 
 Penalties 
 
 Second assessment necessitated because of fraud, etc. 
 REMOVAL OF CATTSES— 
 
 State courts to United States courts (Act Mar. 3, 1911) 
 
 RENOVATED BTTTTER. {See Process or renovated 
 
 BUTTER.) 
 
 RENT— 
 
 Income taxes, gross income (Act Feb. 24, 1919) 
 
 REPAYMENT— 
 
 Money recovered in suits, to collectors and other ofiBcers. . . 
 REPEAXf— 
 
 Provisions relative to acts of 
 
 REPLEVIN— 
 
 Property taken under revenue laws 
 
 Search warrant, property seized under (Act Oct. 28, 1919, 
 
 Title II) 
 
 REPORTS. (See Retttrns.) 
 
 Chief clerk 
 
 Clerks of courts 
 
 Collectors of internal revenue, certificate of Commissioner 
 
 as to receipt 
 
 Neglect of duty, etc., of officers or agents 
 
 United States attorneys, to 
 
 Commissioner of Internal Revenue, expenditures (Act July 
 
 3, 1918) 
 
 Monthly, condition of business (Act Mar. 15, 1898) 
 
 Number, etc., of employees (Act July 3, 1918) 
 
 Refunds, etc 
 
 Department heads (Act Mar. 15, 1898) 
 
 Time, etc., for furnishing to Public Printer 
 
 (Act July 1, 1916) 
 
 District attorneys 774, 838 
 
 Failure to make ^ 
 
 Internal revenue officer or agent, failure to make as ground 
 
 for dismissal ' 
 
 Penalty for failure to make (Act Mar. 4, 1909) 
 
 Violations of law 
 
 531 
 
 348 
 128 
 
 540 
 
 627 
 
 486, 490 
 
 496 
 
 708 
 
 710 
 
 560 
 
 351, 353 
 
 137 
 265 
 
 142-144 
 285 
 610 
 601, 
 
 654, 655 
 137 
 
 654, 655 
 146 
 
 640 
 
 481 
 
 137 
 
 46 
 
 934 
 
 656 
 
 25 
 
 360 
 
 174 
 
 56 
 
 797 
 
 660 
 
 3147 
 
 76 
 
 3163 
 
 92 
 
 3164 
 
 94 
 
 1 
 
 60 
 
 7 
 
 56 
 
 1,6 
 
 60 
 
 3220 
 
 137 
 
 7 
 
 56 
 
 196 
 
 67 
 
 3 
 
 67 
 
 1,838 
 
 659 
 
 3147 
 
 76 
 
 3169 
 
 98 
 
 101 
 
 671 
 
 3169 
 
 98 
 
 Digitized by Microsoft® 
 
12 
 3 
 
 665 
 
 67 
 
 4 
 
 62 
 
 143 
 
 3177 
 
 65,71 
 
 674 
 110 
 
 674, 675 
 
 INDEX. 1013 
 
 REPORTS— Continued. Section. Page. 
 
 Intoxicating liquor kept in private dwelling (Act Oct. 28, 
 
 1919, Title II) 33,34 363 
 
 Number of employees receivdng increased compensation 
 
 (Act July 3, 1918) 6 60 
 
 Secretary of the Treasury, delinquency of officers in render- 
 ing accounts (Act July 31, 1894^ 
 
 Time for furnishing copy to printer (Act July 1, 1916) 
 
 Travel expenses of department employees (Act May 22, 
 
 1908) 
 
 BBSCTJE— 
 
 Prisoners, penalty (Act Mar. 4, 1909) 
 
 Property seized by internal revenue officers 
 
 (Act Mar. 4, 1909) 
 
 RESTORATION— 
 
 Distraint, property seized under 3192 121 
 
 RESTRAINING ORDER— 
 
 Liquor nuisance (Act Oct. 28, 1919, Title II) 22 358 
 
 Violation of war prohibition act (Act Oct. 28, 1919, 
 Titlel) 4 348 
 
 RETAIL DEALERS— 
 
 Particular articles. {See specific heads.) 
 
 RETURNS. (5ee specific heads, also.) 
 
 Assessment of taxes where no return filed 3176 108 
 
 Collector or deputy to make, when 3173, 3176 104, 108 
 
 Disclosure of contents by collector, employee, etc 3167 96 
 
 Duty of taxpayers to render (Act Feb. 24, 1919) 1305 627 
 
 False or fraudulent 3173,3179 104,111 
 
 Fraud, refund, etc., of second assessment 3225 146 
 
 Monthly. {See Monthly returns.) 
 
 Necessity of making 3173 104 
 
 Neglect to make 3173 104 
 
 Nonresidents' property 3180, 3181 111 
 
 Particular taxes. {See specific heads.) 
 
 Time for making 3173,3185 104,117 
 
 REVENUE AGENTS. {See Internal revenue agents.) 
 
 REVENUE OFFICERS. {See Officers.) 
 
 REWARDS— 
 
 Dismissal of officer or agent for receiving illegally 3169 98 
 
 Informers 3169 98 
 
 (Act July 1, 1918) 1 605 
 
 Statement as to amount 3158 91 
 
 RIDING ACADEMIES— 
 
 Definition (Act Feb. 24, 1919) 1001(10) 181 
 
 Special tax on proprietors (Act Feb. 24, 1919) 1001(10) 181 
 
 ROBBERY— 
 
 United States property (Act Mar. 4, 1909) 46 679 
 
 ROOF GARDENS— 
 
 Admissions tax. (See Admissions.) 
 
 RUM— 
 
 Denatured, exception from operation of national pro- 
 hibition act....: (Act Oct. 28, 1919, Title m 4 351 
 
 Withdrawal for denaturation (Act Mar. 2, 1907) 1 300 
 
 SACRAMENT— 
 
 Wine for sacramental purposes, manufacture, etc. (Act 
 
 Oct. 28, 1919, Titlell) 3,6 351,353 
 
 SAILING BOATS— 
 
 Special tax on use of (Act Feb. 24, 1919) 1003 183 
 
 Digitized by Microsoft® 
 
1014 
 
 IKDEX. 
 
 SALES. (Sec specific heads, also.) Seotton. 
 
 Chancery to decree^ when 
 
 Collectors, credit with amount of property purchased: for 
 
 use of United States - 
 
 Cotton, future delivery. {See Cotton FUTtmB&.) 
 
 Distraint proceedings 3190-3195 
 
 Excise taxes. (5ae Excise taxes.) _ 
 
 False statement as to tax in connection -with (Act Feb. 24, 
 
 1919) 
 
 Fraud, evasion of tax 
 
 Particular articles. {See specific beads.) 
 
 Personal property, for taxes (Act Mar. 3, 1893) 
 
 Real estate acquired by United States 
 
 For taxes , 
 
 (Act Mar. 3, 1893) 
 Special occupational tax. {See Occupational taxes.) 
 
 Stamps (Act Feb. 24, 1919) 
 
 SALES AGENTS— 
 
 3207 
 
 127 
 
 3218 
 
 136 
 
 3190-3195 
 
 120-122 
 
 1319- 
 3454 
 
 632 
 596 
 
 2 
 
 3208 
 
 3196-3205 
 
 1,3 
 
 125 
 
 128 
 
 122-127 
 
 124, 125 
 
 1107 
 
 .(Act Feb. 24, 1919) 
 
 Income taxes, exemption 
 
 SANATORKTMS— 
 
 Liquor, use in treatment of alcoholism (Act Oct. 28^ 1919, 
 
 Title II) 
 
 SAVINGS BANKS— 
 
 Income taxes, exemption (Act Feb 24, 1919) 
 
 SCIENTIFIC ORGANIZATIONS— 
 
 Alcohol, withdrawal 
 
 (Act May 3, 1878) 
 (Act June 4, 1912) 
 
 Estate tax, deduction of gifts, etc f Act Feb. 24, 1919> 
 
 Income taxes, deduction of gifts to- (ActFeb. 24, 1919). 
 
 Exemption (Act Feb. 24, 1919) 
 
 SEARCHES AND SEIZURES— 
 
 Bondittg perishable goods seized 
 
 Costs where probable cause for seizure. .,..,...„. 
 
 Delivery of goods seized to marshal before process issues 
 
 Fees and charges in case of. 
 
 Fraud, seizing property found in possession in fraud of laws. . 
 Industrial alcohol, release of property nsed in manufactuie 
 
 of (Act Oct. 28, 1919, Title III) 
 
 Internal revenue officers, authorization to make 
 
 Intoxicating liquor in process of transportation (Act Oct. 28, 
 
 1919, Title II) , 
 
 Vehicle or conveyance used to transport (Act Oct. 28^ 
 
 1919, Title II) 
 
 Liquor in Canal Zone (Act Oct. 28, 1919, Title III) 
 
 Private dwellings, for intoxicating liquor (Act Oct. 28, 
 
 1919, Title II) 
 
 Probable cause, certificate 
 
 Proceedings on seizure of goods valued at $500 or less 
 
 Real estate, for taxes 
 
 Replevin of seized property (Act Oct. 28, 1919, Title II) 
 
 Rescue of seized property 
 
 Search warrant, affidavit (Act June 15, 1917 ) 
 
 Delivery of property to judge, etc. . . (Act June 15, 1917) 
 
 Examination before issue (Act June 15, 1917) 
 
 Force used to liberate server, etc (Act June 15, 1917) 
 
 Forcing entrance to execute (Act June 15, 1917) 
 
 Grounds for issuing (Act June 15, 1917) 
 
 Fraud upon revenue 
 
 Intoxicating liquor (Act Oct. 28, 1919, Title 11^ 
 
 Inventory f Act June 15, 19171 
 
 Issuance to qualified officer (Act June 15, 1917) 
 
 Limit for execution and return. . . .(Act June 15, 1917) 
 Malicious procurement (Act June 15, 1917) 
 
 231 
 
 556 
 
 497 
 
 6 
 
 353 
 
 231 
 
 496 
 
 3297 
 
 257 
 
 
 257 
 
 
 258 
 
 403 
 
 528 
 
 214, 219 
 
 486, 490 
 
 231 
 
 496 
 
 3459 
 
 598 
 
 970 
 
 654 
 
 3458 
 
 597 
 
 3206 
 
 127 
 
 3453 
 
 594 
 
 17 
 
 869 
 
 3166 
 
 96 
 
 26 
 
 360 
 
 26 
 
 360 
 
 20 
 
 369 
 
 25 
 
 360 
 
 970,989 
 
 654 
 
 3460 
 
 599 
 
 3196-3205 
 
 122-127 
 
 25 
 
 360 
 
 3177 
 
 110 
 
 1 3-5, 17 
 
 602, 604 
 
 1 13 
 
 603 
 
 4 
 
 602 
 
 \ 9 
 
 603 
 
 1 8 
 
 603 
 
 1 2 
 
 602 
 
 3462 
 
 601 
 
 1 25 
 
 360 
 
 1 13, 14, 17 
 
 603, 604 
 
 1 6 
 
 602 
 
 1 11 
 
 603 
 
 ) 20 
 
 604 
 
 Digitized by Microsoft® 
 
INDEX. 
 
 1015 
 
 1917) 
 1917), 
 1917) 
 1917) 
 
 SEABCHSS ANT) SEIZtTBES— Continued, 
 Search warrant — Continued. 
 
 National prohibition act, violators of (Act Oct. 28, 1919, 
 
 Title II) 
 
 Obstructing service (Act June 15, 1917) 
 
 Officials authorized to issue (Act June 15, 1917) 
 
 Perjury (Act June 15, 1917) 
 
 Proceedings where issue controverted.(Act June 15, 1917) 
 Punishment (or exceeding authority, etc., in. executing 
 
 (Act June 15, 1917) 
 
 Illegally possessing papers, etc., in aid of foreign 
 
 government (Act June 15, 1917) 
 
 Maliciously procuting ^Act June 15, 
 
 Obstructing, etc., service (Act June 15, 
 
 Perjury (Act June 15, 
 
 Eeceipt for property taken (Act June 15, 
 
 Restoration of property if erroneously taljen (Act June 15, 
 
 1917) 
 
 Retention of propertv where probable cause shown (Act 
 
 June 15, 1917)...." 
 
 Return (Act June 15, 1917) 
 
 Service (Act June 15, 1917) 
 
 Time Act June 15, 1917) 
 
 Signing (Act June 15, 1917) 
 
 Taking seized property from custody of officer, penalty (Act 
 
 Mar. 4, 1909) 
 
 SECBETARY OF AGE.IC1JX,T"CrE.E— 
 
 Cotton, findings with respect to (Act Aug. 11, 1916) 
 
 Renovated butter, authority and duties as to (Act May 9, 
 
 1902) ; -. 
 
 SECRETAKY OF THE NAVY— 
 
 Intoxicating liquors, effect of national prohibition act as to 
 repealing regulations, etc., relating to (Act Oct. 28, 1919, 
 
 Title I) .- 
 
 SECRETABY OF THE TREASURY— 
 
 Abatement of taxes on distilled spirits accidentally de- 
 stroyed 
 
 Account of moneys received from internal taxes 
 
 Alcohol, permits to withdraw for scientific, etc., purposes. . 
 Allowances, collectors for salary, stationery, etc. (Act Feb. 8, 
 
 1875) 
 
 Deputy acting as collector during vacancy 
 
 Pay of deputy collectors (Act Feb. 8, 1875) 
 
 Bonds, filing with 
 
 Collectors, approval of bond as disbursing agent 
 
 Directing deputy to perform duties of 
 
 Directing renewal of bond of 
 
 Commissioner, direction of, in general 
 
 Compromises, authority as to 
 
 Consent ._ 
 
 Depositories for collections, desipiation 
 
 Deputy Commissioners, prescribing duties of 
 
 Discontinuance or nolle prosequi of prosecution . 
 
 Estimates furnished to, method of suppljang information 
 
 (Act July 1, 1916) - 
 
 When , (Act Mar. 3, 1901) 
 
 Forfeitures, remission 
 
 Ciaugers, appointment of - 
 
 Imposing duties of storekeeper and ganger upon one 
 
 officer: (Act Aug. 1.5, 1876) 
 
 Refund of taxes on spirits accidently destroyed 
 
 Regulations, preparation 
 
 Remission of forfeitures 
 
 Section. 
 
 11,1c 
 
 2 
 18 
 
 1 
 19 
 16 
 
 21. 
 
 22 
 20 
 18 
 19 
 12 
 
 16 
 
 16 
 
 ,17 
 7 
 
 10 
 6 
 
 Page. 
 
 350 
 604 
 602 
 604 
 603 
 
 604 
 
 604 
 604 
 604 
 604 
 603 
 
 603 
 
 604 
 603, 604 
 603 
 603 
 602 
 
 65, 71 674, 675 
 
 5 466 
 5 441 
 
 349 
 
 3221 
 
 142 
 
 239 
 
 66 
 
 3297 
 
 257 
 
 12,13 
 
 76,79 
 
 3150 
 
 81 
 
 12 
 
 76 
 
 3144 
 
 75 
 
 3144 
 
 75 
 
 3149 
 
 80 
 
 3143 
 
 72 
 
 321 
 
 51 
 
 3469 
 
 656 
 
 3229 
 
 149 
 
 3211, 3620 
 
 130, 662 
 
 323 
 
 55 
 
 3230 
 
 151 
 
 4 
 
 57 
 
 5 
 
 54 
 
 3461 
 
 601 
 
 8156 
 
 88 
 
 1 
 
 85 
 
 3221 
 
 142 
 
 251, 321 
 
 66,51 
 
 B4fil 
 
 601 
 
 Digitized by Microsoft® 
 
1016 
 
 INDEX. 
 
 SECBETABY OP THE TBEASTTBY— Continued. 
 
 Eeport, delinquency of officers in rendering accounts (Act 
 
 July 31, 1894) 
 
 Furnishing to Public Printer 
 
 (Act July 1, 1916) 
 
 Sales of real estate by Commissioner, approval 
 
 Storekeepers, appointment of 
 
 Imposing duties of storekeeper and ganger upon one 
 
 officer (Act Aug. 15, 1876) 
 
 Superintendent of exportation and drawback, appointment. 
 
 Tabular abstract of receipts from internal taxes 
 
 SECRETARY OP WAR— 
 
 Intoxicating liquors, effect of national prohibition act as to 
 repealing regulations, etc., relating to (Act Oct. 28, 1919, 
 
 Title I) 
 
 SEIZURES. {See Searches and seizures.) 
 SENATE OP THE TTNITED STATES— 
 
 Collectors, confirmation 
 
 Commissioner of Internal Revenue, confirmation 
 
 Solicitor of Internal Revenue, confirmation 
 
 SET-OPP— 
 
 Compensation due debtor of United States, money due from. 
 Debt due United States, deduction from judgment recovered 
 
 or claim allowed (Act Mar. 3, 1875). 
 
 Suits of United States against individuals 
 
 SHIP BROKERS— 
 
 Definition (Act Feb. 24, 1919) 
 
 Special tax (Act Feb. 24, 1919) 
 
 SHIPPING— 
 
 Transportation tax. (See Transportation tax.) 
 SHOOTING GAIiLERIES— 
 
 Definition (Act Feb. 24, 1919) 
 
 Special tax on proprietors (Act Feb. 24, 1919) 
 
 SICKNESS— 
 
 Collectors of internal revenue 
 
 Employees, leave on account of (Act Mar. 15, 1898) 
 
 Returns, extension of time 
 
 Special-tax payers 
 
 Storekeepers 
 
 SIGNS— 
 
 Adulterated butter manufacturers (Act May 9, 1902) 
 
 Cigar manufacturers 
 
 Distillers 
 
 Filled cheese dealers (Act June 6, 1896^ 
 
 Manufacturers (Act June 6, 1896) 
 
 Liquor, advertisements (Act Oct. 28, 1919, Title II) 
 
 Wholesale dealers 
 
 Oleopiargarine manufacturers (Act Aug. 2, 1886) 
 
 Process or renovated butter manufacturers. (Act May 9, 1902) 
 
 Rectifiers 
 
 Snuff manufacturers 
 
 Tobacco manufacturers 
 
 Peddlers 
 
 White phosphorous match manufacturers. .(Act Apr. 9, 1912) 
 
 SNTJPP— 
 
 Abstract of manufacturer's books 
 
 Additional tax (Act Oct. 3, 1917) 
 
 Assessment of tax 
 
 Bond of manufacturer 
 
 Books of manufacturer 
 
 Bulk sale of snuff flour free of tax 
 
 Caution labels on packages 
 
 Digitized by Microsoft® 
 
 Section. 
 
 Page. 
 
 196 
 
 67 
 
 -3 
 
 67 
 
 3208 
 
 128 
 
 3153 
 
 84 
 
 1 
 
 85 
 
 3161 
 
 91 
 
 261 
 
 66 
 
 349 
 
 3142 
 
 71 
 
 319 
 
 51 
 
 349 
 
 56 
 
 1766 
 
 684 
 
 
 684 
 
 951 
 
 685 
 
 1001(3) 
 
 179 
 
 1001(3) 
 
 179 
 
 1001(9) 
 
 181 
 
 1001(9) 
 
 181 
 
 3149 
 
 80 
 
 7 
 
 64 
 
 3176 
 
 108 
 
 3237 
 
 156 
 
 3155 
 
 88 
 
 4 
 
 439 
 
 3388 
 
 397 
 
 3279 
 
 226 
 
 7 
 
 446 
 
 5 
 
 445 
 
 17 
 
 357 
 
 3279 
 
 226 
 
 5 
 
 431 
 
 4 
 
 439 
 
 3279 
 
 226 
 
 3356 
 
 374 
 
 3356 
 
 374 
 
 3382 
 
 389 
 
 2 
 
 458 
 
 3358 
 
 375 
 
 401-403 
 
 868, 869 
 
 3371 
 
 384 
 
 3355 
 
 373 
 
 3358 
 
 375 
 
 3362 
 
 379 
 
 3364 
 
 380 
 
INDEX. 1017 
 
 SNCTFF— Continued. 
 
 Certificate of manufacturer 
 
 Collectors, accounts aa to shipments in bond 
 
 Destruction of unsalable snuff 
 
 Exports 
 
 Drawback 
 
 Packages 
 
 Removal without payment of tax. . (Act Aug. 4, 1886) 
 
 Sales or leases for (Act Feb. 24, 1919) 
 
 False entries, penalty for making 
 
 Floor tax (Act Feb. 24, 1919) 
 
 Foi'feiture, absence of stamp on package 
 
 Unlawful removal, sale, etc 
 
 Fraud, manufacture of snuff by one person for another or on 
 
 shares 
 
 Imports 
 
 Interest of internal revenue officer in manufacture of 
 
 Inventory by manufacturer 
 
 Labels on packages 
 
 Laws coextensive with jurisdiction of United States 
 
 Lottery tickets in packages, etc 
 
 Manufacture by one person for another or on shares 
 
 Manufacturer defined (Act Aug. 27, 1894) 
 
 Packages designated 
 
 Marking 
 
 Removal except in proper packages 
 
 Sales in other than designated packages 
 
 Payment of tax by vendee or lessee (Act Feb. 24, 1919) 
 
 Peddlers, definition 
 
 Penalty for unlawful peddling 
 
 Sign on wagon 
 
 Penalties, affixing false stamps or stamps before used 
 
 Bond, failure of manufacturer to give 
 
 Certificate, failure of manufacturer to obtain 
 
 Inventory, failure to deliver 
 
 Manufacture by one person for another or on shares 
 
 Neglect to affix caution label to package ^ 
 
 Nondestruction of stamps on emptied packages, etc 
 
 Payment, collection, etc., of tax, delinquency (Act 
 Feb. 24, 1919) 
 
 Relanding snuff shipped for export 
 
 Removing without proper stamp, etc 
 
 Sign, failure of manufacturer to put up 
 
 Unlawful removal, sale, etc 
 
 Purchase of snuff not branded or stamped 
 
 Rates of tax 
 
 (Act Feb. 24, 1919) 
 
 Records kept by collectors 
 
 Removal except in proper packages or without stamp 
 
 Permit 
 
 Unlawful 
 
 Returns, attestation (Act Feb. 24, 1919) 
 
 Signs, manufacturers 
 
 Peddlers 
 
 Special tax, bujdng snuff from manufacturer who has not 
 paid 
 
 Penalty for failure of manufacturer or dealer to pay 
 
 Stamps, absence as evidence of nonpayment of tax 
 
 Affixing false stamp or stamp before used 
 
 Emptied packages, destruction, etc 
 
 Export -^ 
 
 Forfeited snuff ." 
 
 Forging, counterfeiting, etc 
 
 How prepared, furnished, and sold 
 
 Removal of snuff without 
 
 Selling without 
 
 Statement of manufacturer 
 
 Digitized by Microsoft® 
 
 Section. 
 
 Page. 
 
 3355 
 
 373 
 
 3444 
 
 589 
 
 3369 
 
 384 
 
 3385 
 
 390 
 
 3386 
 
 393 
 
 3362 
 
 379 
 
 1 
 
 392 
 
 1310 
 
 630 
 
 3372 
 
 385 
 
 702 
 
 381 
 
 3373 
 
 385 
 
 3372 
 
 385 
 
 3370 
 
 384 
 
 3377 
 
 387 
 
 3168 
 
 98 
 
 3358 
 
 374 
 
 3364 
 
 380 
 
 3448 
 
 590 
 
 3394 
 
 401 
 
 3370 
 
 384 
 
 69 
 
 372 
 
 3362 
 
 378 
 
 3362 
 
 379 
 
 3374 
 
 386 
 
 3363 
 
 379 
 
 1312 
 
 630 
 
 3244 
 
 388 
 
 3384 
 
 389 
 
 3382 
 
 389 
 
 3375 
 
 386 
 
 3355 
 
 373 
 
 3355 
 
 373 
 
 3358 
 
 375 
 
 3370 
 
 384 
 
 3364 
 
 380 
 
 3376 
 
 386 
 
 1308 
 
 628 
 
 3385 
 
 391 
 
 3374 
 
 386 
 
 3356 
 
 374 
 
 3372 
 
 385 
 
 3366 
 
 330 
 
 3368 
 
 380 
 
 701 
 
 381 
 
 3357 
 
 374 
 
 3374 
 
 386 
 
 3385 
 
 390 
 
 3372 
 
 385 
 
 1309 
 
 629 
 
 3356 
 
 374 
 
 3382 
 
 389 
 
 3367 
 
 380 
 
 3242 
 
 159 
 
 3373 
 
 385 
 
 3375 
 
 386 
 
 3376 
 
 386 
 
 3385 
 
 390 
 
 3369 
 
 383 
 
 3372 
 
 385 
 
 3369 
 
 383 
 
 3374 
 
 386 
 
 3372 
 
 385 
 
 3355 
 
 372 
 
1018 INDEX. 
 
 SOCIAL CLUBS— Section. Page. 
 
 Dues, rate of tax on (Act Feb. 24, 1919) 801 541 
 
 Income taxes, exemption (Act Feb. 24, 1919) 231 497 
 
 SOFT DRINKS. (-See Beverages.) 
 SOLDIERS AND SAILORS— 
 
 Admissions tax, exemption where proceeds of entertainment 
 
 forbeneatof (Act Feb. 24, 1919) 800(6) 540 
 
 Appointment to civil offices, preference 1754 693 
 
 (Act Aug. 15, 1876) 3 693 
 
 Estate tax, decedent dying while serving in military forces 
 
 (Act Feb. 24, 1919) 4fl] 525 
 
 Income taxes, exemptions, etc (Act Feb. 24, 1919) 213 483 
 
 Widows, preference in reducing force of civil employees (Act 
 Aug. 15, 1876) 3 093 
 
 SOLICITOR OF INTERNAL REVENtTE- 
 
 Appointment 349 56 
 
 Compensation 349 56 
 
 Compromises, opinions and reasons therefor 3229 149 
 
 Duties, in general 3229 149 
 
 SOLICITOR OF THE TREASURY— 
 
 Collectors, approval of sureties on bonds 3143 72 
 
 Compromise of claims of United States 3469 656 
 
 Delinquent disbursing officers, proceedings against 3633 666 
 
 Distraining delinquent collectors, etc 3217, 3625 135, 666 
 
 SPECIAL TAXES— 
 
 Occupations, {See Occupational taxes.) 
 
 Returns 3173 104 
 
 Penalty for failure to make 3176 108 
 
 Summons to persons liable in case of delinquency 3173, 3175 104, 107 
 
 SPIRITS. (See Distilled spirits.) 
 SPORTING GOODS— 
 
 Excise tax (Act Feb. 24, 1919) 900(5) 543 
 
 STAMPS AND STAICP TAXES. (Sec specific heads, also.) 
 Allowance for stamps where spoiled, etc .(Act May 12, 1900'). 
 
 Altering (Act Mar. 4, 1909) 
 
 Assessment of tax when article is removed without being 
 
 stamped 
 
 Cancellation, etc., mode 
 
 Changes, commissioner's authority to make 
 
 Claims, redemption of spoiled, etc., stamps (Act May 12, 
 
 1900) 
 
 Collectors, charges and credits 
 
 Commissioner, fuiality of findings upon claim for redemp- 
 tion of stamps (Act May 12, 1900) 
 
 Supplying, etc 
 
 Counterfeiting (Act Mar. 4, 1909) 
 
 Establishment and change. Commissioner's power as to 
 
 Evidence, washing, restoring, etc 
 
 Excise taxes, affixing to articles (Act Feb. 24, 1919) 
 
 Instruments for attaching, protecting, etc.. Commissioner's 
 
 authority to prescribe 3445, 
 
 Issuance before payment (Act Mar. 1, 1879) 
 
 Limitation of redemption (Act May 12, 1900) 
 
 Mailing to officers of internal revenue service (Act Aug. 15, 
 
 1876) 
 
 Particular articles, on. {See specific heads.) 
 
 Penalty, disposing of or receiving empty stamped packages. 
 
 Taxes payable by stamp (Act Feb." 24, 1919) 
 
 Philippine Islands, tax on articles shipped to or from (Act 
 
 Mar. 8, 1902) 
 
 (Act Oct. 3, 1913) 
 Porto Rico, merchandise shipped to or from (Act June 29, 
 1906) 1 620 
 
 Digitized by Microsoft® 
 
 
 552 
 
 147, 148 
 
 680 
 
 3437 
 3446 
 3445 
 
 553 
 
 589 
 589 
 
 2 
 
 3218 
 
 552 
 136 
 
 2 
 
 321 
 
 147, 148 
 
 3446 
 
 3429 
 
 907 
 
 552 
 51 
 680 
 589 
 553 
 549 
 
 3445, 3446 
 1 
 1 
 
 589 
 100 
 552 
 
 1 
 
 590 
 
 3455 
 1307 
 
 596 
 628 
 
 6 
 IV 
 
 623 
 623 
 
INDEX. 1019 
 
 STAMPS AND STAMP TAXES— Continued. Scctiou. ra.?e. 
 
 Receipt in lieu of 3183 115 
 
 Kedemption, appropriation , 3689 686 
 
 Restoring " 3429 553 
 
 Revenue Act of 1918, prior lavrs made part of (Act Feb. 24, 
 
 1919) 1305 627 
 
 Special tax, Commissioner to procui'e 3238 156 
 
 Place in Tfhich to be kept 3239 157 
 
 Stamp as evidence of sale of intoxicating liquor (Act 
 
 Feb. 14, 1917) 26 185 
 
 Use of existing stamps (Act Feb. 24, 1919 ) 1311 630 
 
 Washing 3429 553 
 
 Act February 24, 1019— 
 
 Afflxiug of stamps 1105 556 
 
 Altering stamps 1103 555 
 
 Assessment of taxes 1105 556 
 
 Bankruptcy cases, poTzers of attorney requh-ed in 560 
 
 Boards of trade, rate of tax on sales of produce on 558 
 
 Bonds, exemption IIQI 554 
 
 Indebtedness, rate of tax 557 
 
 Indemnity and surety, rate of tax 557 
 
 United States, tax on notes secured by 560 
 
 Brokers, tax upon deliveries or transfers of capital stock for 
 
 sale, etc 558 
 
 Building and loan association bonds, exemption 1101 554 
 
 Cancellation of stamps, method 11Q4 556 
 
 Penalty for removing or altering maj-ks 1103 555 
 
 In case of failure as to , 1102 555 
 
 Capital stock, issue, rate of tax 557 
 
 Sales or transfers, rate of tax 558 
 
 Certificates of indebtedness, rate of tax 557 
 
 Receiving for taxes payable other than by stamp 1314 132 
 
 Certificates of stock, rate of tax 558 
 
 Charitable societies, proxies for voting, elections _ 560 
 
 CheckSj rate of tax 559 
 
 Cigarette and small cigar packages 700 402 
 
 Circulating bank notes 559 
 
 Claims for pensions, property lost in military, etc., service, 
 
 powerof attorneym casesof 560 
 
 Collection of taxes - 1105 556 
 
 Contract for stamps, authority of Commissioner to make 1105 556 
 
 Conveyances, rate of tax 560 
 
 Cooperative building and loan association stocks or bonds, 
 
 exemption 1101 554 
 
 Counterfeit stamps, using 1103 555 
 
 Customhouse, entry for withdrawal of goods from bonded 
 
 ■warehouse, rate of tax 560 
 
 Entry of goods at, rate of tax 560 
 
 Date tax effective - 1100 554 
 
 Debentures, rate of tax 557 
 
 Deeds, rate of tax 560 
 
 District of Columbia bonds, exemption 1101 554 
 
 Drafts, rate of tax 559 
 
 Educational societies, proxies for voting, elections 560 
 
 Entry of goods at customhouse, rate of tax > 560 
 
 Withdrawal from customs bonded warehouse, rate of tax 560 
 
 Exchanges, rate of tax on sales of produce on 558 
 
 Exempt instruments 1101 554 
 
 Fidelity insurance, rate of tax 557 
 
 Foreign government bonds, exemption 1101 554 
 
 Forfeiture, counterfeit, etc., stamps and documents, etc., 
 
 on which placed 1103 555 
 
 Forged stamps, using 1103 555 
 
 Fraternal societies, proxies for voting, elections > 560 
 
 Fraud, collection and assessment of taxes omitted through.. 1105 556 
 
 Penalty -. U03 555 
 
 Future delivery, rate of tax on sales of produce for 559 
 
 Digitized by Microsoft® 
 
1020 INDEX. 
 
 STAMPS AND STAMP TAXES— Continued. 
 Act February 24, 1919 — Continued. Section. 
 
 Guaranty insurance, rate of tax 557 
 
 Indemnity bonds, exemption 1101 554 
 
 Rate of tax 557 
 
 Insurance policies, etc., rate of tax 561 
 
 Laws applicable to assessment and collection of taxes 1105 556 
 
 Literary societies, proxies for voting, elections 560 
 
 Mistake, collection and assessment of taxes omitted through. 1105 556 
 
 Mortgage guarantee policies, rate of tax 557 
 
 Municipal corporation bonds, exemption 1101 554 
 
 Mutual ditch or irrigation company bonds, exemption 1101 554 
 
 Obliteration of stamps, penalty in case of failure as to 1102 555 
 
 Parcel-post packages, penalty for failure to pay tax 1102 555 
 
 Rate of tax 561 
 
 Passage tickets, rate of tax 560 
 
 Payment of tax, penalty for failure to make 1102 554 
 
 Penalties, failure to affix stamps to insurance policies, etc 561 
 
 Failure to pay t4x or cancel stamps 1102 554 
 
 Fraud,etc 1103 555 
 
 Persons liable 1100 554 
 
 Playing cards, payment of tax by Vendee or lessee 1312 630 
 
 Penalty for failure to pay tax 1102 555,574 
 
 Rate of tax 561, 574 
 
 Policies of insurance, etc., rate of tax 561 
 
 Postmasters, furnishing stamps for sale by 1106 556 
 
 Postmaster General, authority and duties as to stamps fur- 
 nished to postmasters 1106 556 
 
 Power of attorney, rate of tax 560 
 
 Preparation and distribution of stamps 1105 556 
 
 Produce, sales of, on exchange, rate of tax 558 
 
 Promissory notes, rate of tax 559 
 
 Proxies for voting, rate of tax 560 
 
 Public cemetery corporations, proxies for voting, elections 560 
 
 Receipts from sale of stamps by postmasters 1106 556 
 
 Redemption (Act May 12, 1900) 552 
 
 Regulations, safe-keeping or illegal use of stamps 1107 557 
 
 Religious societies, proxies for voting, elections 560 
 
 Removal, cancellation marks from stamps, penalty 1103 555 
 
 Stamps from instruments, penalty 1103 555 
 
 Renewals of bonds of indebtedness, rate of tax 557 
 
 Drafts, checks, etc., rate of tax 559 
 
 Indemnity and surety bonds, rate of tax 557 
 
 Restoring 1103 555 
 
 Returns 1305 627 
 
 Sale of stamps 1107 556 
 
 State bonds, exemption 1101 554 
 
 Surety bonds, rate of tax 557 
 
 Territorial bonds, exemption 1101 554 
 
 Title guarantee insurance, rate of tax 557 
 
 Uncerti^ed checks, receiving for taxes payable other than 
 
 by stamp 1314 132 
 
 United States bonds, exemption 1101 554 
 
 Washing stamps 1103 555 
 
 Act October 3, 1017— 
 
 Affixing stamps 805 880 
 
 Altering stamps 803 880 
 
 Assessment of taxes 805, 1001 880, 887 
 
 Bankruptcy cases, powers of attorney requu'ed in 885 
 
 Boards of trade, rate of tax on sales of produce on 883 
 
 Bonds, exemption 801 879 
 
 Indebtedness, rate of tax 881 
 
 Indemnity and surety, rate of tax 881 
 
 Building and loan association bonds, exemption 801 879 
 
 Cancellation of stamps, method 804 880 
 
 Penalty for removing or altering marks 803 880 
 
 In case of failure as to 802 879 
 
 Digitized by Microsoft® 
 
INDEX. 1021 
 
 STAMPS AND STAMP TAXES— Continued. 
 Act October 3, 1917 — Continued. Section. Page. 
 
 Capital stock, issue, rate of tax 882 
 
 Sales or transfers, rate of tax 882 
 
 Certificates of indebtedness, rate of tax 881 
 
 Checks, rate of tax 884 
 
 Circulating bank notes, rate of tax 884 
 
 Claims for pensions, property lost in military, etc., service, 
 
 power of attorney in cases of 885 
 
 Collection of tax {^"^'^^OOs} 880.887 
 
 Contract after act effective, person liable for tax 1007 888 
 
 Stamps, authority of Commissioner to make 805 880 
 
 Conveyances, rate of tax 884 
 
 Cooperative building and loan association bonds, exemp- 
 tion.'. 801 879 
 
 Counterfeit stamps, using 803 879 
 
 Customhouse, entry for withdrawal of goods from bonded 
 
 warehouse, rate of tax 884 
 
 Entry of goods at, rate of tax 884 
 
 Date tax effective 800 878 
 
 Debentures, rate of tax 881 
 
 Deeds, rate of tax 884 
 
 District of Columbia bonds, exemption 801 879 
 
 Drafts, rate of tax 884 
 
 Entry of goods at customhouse, rate of tax 884 
 
 Withdrawal from customs bonded warehouse, rate of 
 
 tax 884 
 
 Exchanges, rate of tax on sales of produce on 883 
 
 Exemptions 801 879 
 
 Forged stamps, using 803 879 
 
 Fraud, penalties 803 879 
 
 Future delivery, rate of tax on sales of produce on exchanges 
 
 for 883 
 
 Indemnity bonds, rate of tax 881 
 
 Laws applicable to assessment and collection of taxes 805 880 
 
 Municipal bonds, exemption 801 879 
 
 Mutual ditch and irrigation company bonds, exemption. . . 801 879 
 
 Parcel-post packages, rate of tax ." 885 
 
 Passage tickets, rate of tax 884 
 
 Payment 1002 887 
 
 Fractions of cent 1008 889 
 
 Penalty for failure to make 802 879 
 
 Penalty, failure to make return 1004 887 
 
 Failure to pay tax or cancel stamps 802 879 
 
 False or fraudulent return 1004 887 
 
 Fraud.etc . 803 879 
 
 Persons liable 800 878 
 
 Playing cards, rate of tax 885 
 
 Postmasters, furnishing stamps for sale by 806 881 
 
 Postmaster General, authority and duties as to stamps fur- 
 nished to postmasters 806 881 
 
 Power of attorney, rate of tax 885 
 
 Preparation and distribution of stamps 805 880 
 
 Promissory notes, rate of tax 884 
 
 Proxies, rate of tax 884 
 
 Records of taxpayers 1001 887 
 
 Regulations 1005 888 
 
 Safe-keeping and illegal use of stamps 807 881 
 
 Reinsurance policy, exemption 881 
 
 Removal, cancellation marks from stamps, penalty 803 880 
 
 Stamps from instruments 803 880 
 
 Renewals of bonds of indebtedness, rate of tax 881 
 
 Restoring stamps 803 879 
 
 Returns.. 1001,1002 887 
 
 Penalty for failure to make, etc 1004 887 
 
 Saleofstamps 807 881 
 
 Digitized by Microsoft® 
 
1022 
 
 IHDEX 
 
 801 
 
 801 
 
 1006 
 
 803 
 
 STAMPS AND STAMP TAXES— Coaitiixued. 
 Act October 3, 1917 — Continued. Section'. 
 
 State bonds, exemption , 801 
 
 Surety bonds, rate of tax _ 
 
 Territorial bonds, exemption 
 
 United States bonds, exemption 
 
 Use of stamps on hand 
 
 Washing stamps 
 
 Act October 22, 1914— 
 
 Bank notes, ciccul'arting 
 
 Bills of lading 
 
 Bonds 
 
 Brokerar memoranda of SEles. 
 
 Certificates 
 
 Indebtedness 
 
 Chewing gum 
 
 Contracts 
 
 Conveyances _ 
 
 ■Cosmetics 
 
 Debentures 
 
 Drawback 
 
 Entry of goods at customhouse 
 
 Withdrawal of goods from customs warehouse 
 
 Indemnifying- bond's. 
 
 Insurance policies 
 
 Parlor-car seats. 
 
 Passage tickets'. 
 
 Penalties 
 
 Perfumery 
 
 Powers of attorney 
 
 Promissory notes 
 
 Protest of notes, etc 
 
 Proxies 
 
 Redemption of stamps 
 
 Sales on boards of trade, etc 
 
 Sleeping-car berths. 
 
 Telegraph and telephone messages 
 
 STATES- 
 
 Alcohol, withdrawal (Act Oct.. 28, 1919,. Title III) 11 
 
 Banks. (See- Banjks and eankees.) 
 
 Bonds;,.exemptioiLfrQm.stamp tax (ActFeb. 24^1919) 1101 
 
 Definition 3140' 
 
 Execution, governed by laws of 916 
 
 Running in every State 986 
 
 Income taxes, interest on. State obligatioiia (Aet Feb. 24, 
 
 19^19) 2ia 
 
 Retu-rns, access of ofiicials... (ActFeb..24, 1919) 25-7' 
 
 National prohibition act, inspection by State officials of 
 reports or records-required by (Act. Oct. 28, 1919, Title II); 34 
 
 Powers as to taxes 
 
 Practice in courts- of, conformity to-. 
 
 Rules of decision, in trials,, etc 
 
 Removal of causes from. State courts (Act Mar. 3,19!ll) 
 
 Special tax^ payment for exhibition ia one State as affect- 
 ing kability where exhibitioiL made in. anothes State 
 (Act Feb. 24, 19.19) 
 
 Payment of, as exempting fiomi penalty under State- 
 laws - 
 
 rActFeb.24,1919) 
 
 Transportation tax,, exemption (Act Feb. 24, 1919) 
 
 Warrants for arrest issued by officers of 
 
 STATIONTEBY- 
 
 Allowance to collectors for C-A-Ct Feb. 8, 1875) 13 79 
 
 STATISTICS— 
 
 Incom« taxes, pubUcation... (Act Feb. 24,, 1919) 258 510 
 
 .Leaf tobacco (Act Apr. 3Q,. 1912) 1,7 394 
 
 914 
 
 721, 858 
 
 33. 
 
 1001(7} 
 
 879 
 881 
 879 
 879 
 888 
 880 
 
 783 
 783 
 781 
 786 
 785 
 781 
 789 
 786 
 786 
 788 
 781 
 790 
 786 
 786 
 785 
 786 
 788 
 788 
 790 
 788 
 788 
 783 
 788 
 788 
 791 
 782 
 788 
 784 
 
 368 
 
 554 
 
 70 
 
 647 
 
 482 
 510 
 
 363 
 
 18 
 
 647 
 
 646, 643 
 
 640 
 
 180 
 
 3243- 
 
 161 
 
 1001(12) 
 500(6) 
 
 181 
 
 534 
 
 1014 
 
 642 
 
 Digitized by Microsoft® 
 
mDEX. 102.3- 
 
 STATUTES- S,,U„„. J,,,, 
 Construction ^ ig 
 
 Limitations. (See Limitation's.) 
 
 List of internal revenue laws , 27 
 
 STEAMBOATS— 
 
 Retail dealers in Kquors, etc., on, special tax stamp (Jt. 
 
 Res. Miay 8, 1876)....... f. 154 
 
 Special tax (ActFeb. 24, mO) 1003 183 
 
 Transportation tax. {See Transportation tax.) 
 SfriliLS. {See Distilied spirits.) 
 STOCK— 
 
 Capital stock tax. {See Capital stock tax.) 
 
 Stam|) tax, certifica,tes of stock, rate (Act Feb . 24, 1919) 
 
 Cooperative building and loan associations, exemption 
 
 (Act Feb. 24, 1919) 
 
 Issue of capital stock (Act Feb. 24, 1919) 
 
 Sates or transfers of capital stock (Act Feb . 24, 1919) 
 
 Stockholders, inspection of income tax returns (Act Feb. 
 24,1919) 
 
 STOBEKEEPEBS— 
 
 Absence, appointment of temporary storekeeper -. 
 
 Accounts (Act Apr. 17, 1900) 
 
 Annual leave (Act June 23, 1910) 
 
 Appointment 
 
 Assignment to duties 
 
 (AetAug. 27, 1894)- 
 
 Bonds 
 
 Compensation ..^ ^^ 
 
 (Act Aug. 15, 1876) 
 
 (Act June 21, 1879) 
 
 (Act Aug. 27, 1894) 
 
 (Act Feb. 24, 1911) 
 
 Distillers' warehouses, charge of. 
 
 Distilleries, charge of 
 
 Numb er allowed in commission (Act July 7 , 1884) 
 
 Oath 
 
 Penalties, unlawful- removing, or permitting removal, of 
 
 spirits from warehouse 
 
 Permission to engage in other business 
 
 Record of distillery operations 
 
 Returns and reports 
 
 Supervision of bottling spiritain bond (Act Mar. 3, 1897) 
 
 Suspension by Commissioner (Act Aug. 15, 1876) 
 
 Tax-paid stamps, signing 3287, 3295 
 
 Temporary, designation hy collector". 
 
 Transfer 
 
 (Act Aug. 15, 1876) 
 
 From one warehouse to another, 
 
 Traveling expenses (Act Aug. 27, 1894) 
 
 STOBEKEEPEB-GAUGEBS— 
 
 Accounts (Act Apr. 17, 1900) 
 
 Annual leave (Act June 23, 1910) 
 
 Assignment of duties (Act Aug. 27,. 1894) 63,64 87,85 
 
 Bond (Act Aug. 15,- 1876) 1 85 
 
 (Act Aug. 27, 1894) 64 85 
 
 Gombimng office of storekeeper and ganger (Act Juno 28, 
 
 1902) 86 
 
 Compensation (Act Aug. 15, 1876) 1 85 
 
 (Act June 21, 1879) 2 86 
 
 (Act Aug. 27, 1894) 63 87 
 
 (Act June 28, 1902.) 86 
 
 (ActFeb, 24, 1911) 86 
 
 Duties of storekeeper and ganger, imposing on one officer 
 
 (Act Aug. 15, 1876) 1 85 
 
 Digitized by Microsoft® 
 
 1101 
 
 554 
 
 
 557 
 
 
 558 
 
 " 257 
 
 510 
 
 3155 
 
 88 
 
 ) 1 
 
 87 
 
 
 90 
 
 3153 
 
 84 
 
 3154 
 
 87 
 
 )■ 63 
 
 87 
 
 3153 
 
 84 
 
 3153 
 
 84 
 
 1 1 
 
 85 
 
 1 2 
 
 86 
 
 1 63 
 
 87 
 
 
 86 
 
 3271 
 
 222 
 
 3273 
 
 224 
 
 1 1 
 
 90 
 
 3153 
 
 84 
 
 3300 
 
 259 
 
 3153 
 
 84 
 
 3302 
 
 260 
 
 3301 
 
 259 
 
 1 1 
 
 291 
 
 1 
 
 98 
 
 3287, 3295 
 
 234, 255 
 
 3155 
 
 88 
 
 3163 
 
 97 
 
 i 1 
 
 97 
 
 3154 
 
 83 
 
 63 
 
 82 
 
 I 
 
 87 
 
 
 90 
 
1024 
 
 INDEX, 
 
 STOBEKBEPEB-GAXTGERS— Continued. 
 
 Fruit distilleries and wineries, assignment to (Act Sept. 8, 
 
 1916) :.... 
 
 Number allowed in commission (Act July 7, 1884) 
 
 Transfer 
 
 (Act Aug. 15, 1876) 
 
 Traveling expenses (Act Aug. 27, 1894) 
 
 (Act June 28, 1902). 
 STREET FAIRS— 
 
 Special tax (Act Feb. 24, 1919) 
 
 SUBPOENAS— 
 
 Witnesses, claim proceedings 
 
 SUITS. (See Actions.) 
 SUMMONS— 
 
 Attachment for failure to obey 
 
 Authority to issue (Act Aug. 15, 1876) 
 
 National prohibition act, proceedings under (Act Oct. 28, 
 1919, Title II) 
 
 Section. 
 
 402 
 
 1 
 
 3163 
 
 1 
 
 63 
 
 1001(7) 
 
 184 
 
 3175 
 1 
 
 Production of books. 
 
 39 
 f 3173- 
 \3175, 3179 
 
 Service by deputy collector 3174 
 
 Taxpayers delinquent in making returns 3173-3175 
 
 SUNDAY— 
 
 Distilling processes 3283 
 
 Exclusion in computing annual leave (Act Feb. 24, 1899) 4 
 
 Hoursof work (Act Mar. 15, 1898) 7 
 
 SUPERINTENDENT OF EXPORT AND DRAW- 
 BACK- 
 
 Appointment 3161 
 
 Authority to administer oath 3162 
 
 Compensation 3161 
 
 SUPREME COURT— 
 
 Appeal, etc., to, bonds 1001 
 
 Costs 1001 
 
 Limitations 1008 
 
 (Act Mar. 3, 1911) 243 
 
 (Act Sept. 6, 1916) 6 
 
 Decisions listed 
 
 SURETIES— 
 
 Collectors' bonds, approval by Solicitor of Treasury .3143 
 
 SURETY BONDS— 
 
 Stainp taxes, exemption (Act Feb. 24, 1919) 1101 
 
 Rate (Act Feb. 24, 1919) 
 
 SURETY COMPANIES (Act August 13, 1894)— 
 Charter, copy to, be filed with Secretary of Treasury 
 Estoppel to deny corporate power, etc 
 
 Forfeiture of right to do business, grounds 
 
 Insolvency, revocation of powers in case of 
 
 Jurisdiction of suit against 
 
 Notice of execution of process upon agent 
 
 Penalty, failure to comply with provisions of act 
 
 Power of attorney, filing as condition precedent to doing 
 
 business 
 
 Premiums for execution of official bonds. (Act Aug. 5, 1909). 
 
 Sole surety on bonds 
 
 Statement of assets and liabilities, filing 
 
 SUSPENSION— 
 
 Collector and other officers by Commissioner (Act Aug. 15, 
 
 1876) 
 
 SWEET CIDER— 
 
 National prohibition act, exception from operation of (Act 
 
 Oct. 28, 1919, Title II) 
 
 Digitized by Microsoft® 
 
 90 
 90 
 92 
 93 
 87 
 86 
 
 180 
 684 
 
 107 
 93 
 
 365 
 
 104- 
 
 107, 11] 
 
 IO7 
 IO4-IO7 
 
 233 
 65 
 64 
 
 91 
 92 
 91 
 
 652 
 653 
 652 
 652 
 651 
 23-25 
 
 72 
 
 554 
 557 
 
 613 
 614 
 614 
 613 
 614 
 613 
 614 
 
 613 
 616 
 612 
 613 
 
 93 
 
 351 
 
moEX. 
 
 1025 
 
 Section. 
 
 rage. 
 
 5266 
 
 692 
 
 231 
 
 497 
 
 348 
 
 368 
 554 
 482 
 534 
 
 180 
 180 
 
 T. 
 
 TEIiEGBAPHS AND TELEPHONES— 
 
 Government telegrams, priority in transmission 
 
 Income taxes, exemption of telephone companies (Act Feb. 
 ^4:, 1919 ). ............................................. 
 
 Tax on transmission of messages or conversations. {See 
 Transportation tax.) 
 TEMPORARY INJUNCTION— 
 
 Nuisance, violation of war prohibition act (Act Oct. 28, 
 1919, Title I) 4 
 
 TERRITORIES. (See Alaska; Philippine Islands; Poeto 
 Rico.) 
 
 Alcohol, withdrawal (Act Oct. 28, 1919, Title III) 11 
 
 Bonds, exemption from stamp tax (Act Feb. 24, 1919) 1101 
 
 Income taxes, interest on obligations of. (Act Feb. 24, 1919) 213 
 
 Transportation tax, exemption (Act Feb. 24, 1919) 500(A) 
 
 THEATERS— 
 
 Admissions tax. (See Admissions.) 
 
 Definition (Act Feb. 24, 1919) 1001(5) 
 
 Special tax on proprietors (Act Feb. 24, 1919) 1001(5) 
 
 TICKETS— 
 
 Admissions tax. (See Admissions.) 
 
 Passage tickets, stamp tax (Act Feb. 24, 1919) 
 
 TIME. {See Limitations.) 
 
 Accounts by collectors, rendering 
 
 Assessment of tax, regulations 
 
 Collection of tax, regulations 
 
 Commissioner's decision in case of appeals 
 
 Correction of incomplete or incorrect lists 
 
 Effective date of acts 
 
 Monthly returns 
 
 Payment, collections into Treasury by collectors 
 
 Tax 
 
 Particular taxes. (See specific heads.) 
 
 Reassessment of tax 
 
 Redemption of stamps (Act May 12, 1900) 
 
 Refunds, filing claims 
 
 Returns, extension in case of illness or absence 
 
 Special tax due, when 
 
 Suits to recover tax, etc. , erroneously collected 
 
 Summons to produce books or testify, compliance with. . . . 
 
 TITLE— 
 
 Guarantee insurance, stamp tax (Act Feb. 24, 1919) 
 
 TOBACCO— 
 
 Abstract of manufacturer's books 3358 375 
 
 Additional tax (Act Oct. 3, 1917) 401-403 868, 869 
 
 Assessment of tax 3371 384 
 
 Bond of manufacturer 3355 373 
 
 Books of manufacturer 3358 375 
 
 Bulk sales of perique, etc., free of tax 3362 379 
 
 Caution labels on packages 3364 380 
 
 Certificate of manufacturer 3355 373 
 
 Collectors, accounts as to shipments in bond 3444 589 
 
 Dealer in leaf tobacco defined 3244 375 
 
 Destruction of unsalable tobacco 3369 384 
 
 Distraint sale, marks, brands, etc., to be affixed by officer. 3369, 3458 383, 598 
 
 Exports 3385 390 
 
 Bond (Act Feb. 8, 1875) 24 392 
 
 Drawback 3386 393 
 
 (Act Feb. 8, 1875) 25 393 
 
 Packages 3362 379 
 
 140184°— 20 -65 
 
 Digitized by Microsoft® 
 
 3212 
 
 132 
 
 3447 
 
 590 
 
 3447 
 
 590 
 
 3226 
 
 146 
 
 3182 
 
 112 
 
 
 22 
 
 3185 
 
 117 
 
 3210 
 
 129 
 
 3184, 3185 
 
 116, 117 
 
 3182 
 
 112 
 
 1 
 
 552 
 
 3228 
 
 148 
 
 3176 
 
 108 
 
 3237 
 
 156 
 
 3227 
 
 147 
 
 3174 
 
 107 
 
 
 557 
 
1026 
 
 JISDEK. 
 
 TOBACCO— Continued . 
 Exports — Continued. 
 
 Removal without payment of tax . . (Act Aug. 4, 
 
 Retention of tobacco where r^amported . (Act Oct. 3, 1913) 
 
 Sales or leases .(Act Feb. 2i, 1919) 
 
 Withdrawal, transportation bond. ..(Act Feb. 8, 1875) 
 
 False entry, penalty for making - 
 
 Farmers, restrictions as to sales of leaf tobacco removed (Act 
 
 Oct. 1, 1890) 
 
 Floor tax (Act Feb. 24, 1919) 
 
 Forfeitiu^e, absence of stamp on package 
 
 Unlawful reraoyal, Bal<?, etc 
 
 Fraud, claim of drawback on manufactured tobacco -(Act 
 Feb. 8, 1875) 
 
 Manufacture of tobacco by -one person for another or on 
 
 shares 
 
 Imports 
 
 Retention at customliouse of reimported tobacco (Act 
 
 Oct. 3, 1913) 
 
 Interest of internal revenue officer in manufactm'e 
 
 Inventory by manufacturer 
 
 Labels on packages 
 
 Laws coextensive with jurisdiction of United States 
 
 Leaf tobacco, bond of dealer 
 
 Dealer defined 
 
 Examination of books, papers, etc 
 
 Farmer or grower as dealer 
 
 Inventories by dealers 
 
 Invoices and records of dealers 
 
 Numbers assigned to dealers 
 
 Penalties for violation of laws 
 
 Quantity in sales or shipments 
 
 Registry of dealers and peddlers. . .(Act Oct. 1, 1890^ 
 
 Removal of restri<?-tioBS as to farmers (Act Oct. 1, 1890) 
 
 Reports by dealers 
 
 Restrictions as to sales by farmers removed (Act Oct. 1, 
 1890) 
 
 Sales by dealer 
 
 Shipments made to whom 
 
 Statement, location of place of business, storage, etc... 
 Sales by dealers 
 
 Statistics (Act Apr. 30, W12) 
 
 Tax in case of law violations 
 
 Maniif actmre of tobacco by one person for another or on shares . 
 
 Manufacturer defin«d (Act Aug. 27, 1894) 
 
 (Act Feb. 24, 1919) 
 
 Marking packages - , 
 
 Packages designated 
 
 Removal except in proper packages 
 
 Sales in other than designated packages 
 
 Payment of tax by vendee or lessee (Act F«b . 24, 1919) 
 
 Peddlers, bond 
 
 Certificate to be obtainod and exhibited 
 
 Definition 
 
 Penalty for unlawful peddling 
 
 Sign on wagon ^ 
 
 Statement to collector 
 
 Penalties, affixing false stamps or stamps before u-sed 
 
 Bond, failure of manufacturer to give 
 
 Certificate, failure of manufacturer to obtain ' 
 
 Fraudulent claim of drawback (Act Feb . 6, 1875) 
 
 Inventory, failure to deliv^3r, €tc 
 
 Manufacture by one person for another or on shares 
 
 Neglect to affix caution label to packages 
 
 Nondestructioa of stamps on emptied packages, etc 
 
 Omitting things required and doing tbiangs forbidden. . . 
 
 Section. 
 
 Page. 
 
 1 
 
 SS2 
 
 1 
 
 393 
 
 1310 
 
 630 
 
 24 
 
 391 
 
 3372 
 
 385 
 
 27 
 
 372 
 
 702 
 
 381 
 
 3373 
 
 385 
 
 3372 
 
 385 
 
 25 
 
 393 
 
 3370 
 
 384 
 
 3377 
 
 387 
 
 1 
 
 393 
 
 3168 
 
 98 
 
 3358 
 
 374 
 
 33€4 
 
 380 
 
 3448 
 
 590 
 
 3360 
 
 376 
 
 3244 
 
 375 
 
 3359 
 
 376 
 
 3360 
 
 378 
 
 3360 
 
 377 
 
 3360 
 
 377 
 
 3360 
 
 377 
 
 3360 
 
 378 
 
 3360 
 
 377 
 
 26 
 
 376 
 
 27 
 
 372 
 
 3360 
 
 377 
 
 27 
 
 372 
 
 3244 
 
 375 
 
 3360 
 
 377 
 
 3360 
 
 376 
 
 3359 
 
 376 
 
 1,7 
 
 394 
 
 3360 
 
 378 
 
 3370 
 
 384 
 
 69 
 
 372 
 
 1002 
 
 182 
 
 3362 
 
 379 
 
 3362 
 
 378 
 
 3374 
 
 386 
 
 3363 
 
 379 
 
 3312 
 
 630 
 
 3381 
 
 388 
 
 3383 
 
 389 
 
 3244 
 
 388 
 
 3384 
 
 389 
 
 3382 
 
 389 
 
 3381 
 
 388 
 
 3375 
 
 386 
 
 3355 
 
 373 
 
 335S 
 
 373 
 
 25 
 
 393 
 
 3358 
 
 375 
 
 3370 
 
 384 
 
 3364 
 
 380 
 
 3376 
 
 386 
 
 3456 
 
 597 
 
 Digitized by Microsoft® 
 
INDEX. 
 
 1027 
 
 TOBACCO— Continued. 
 
 Penalties — Continued. Section. 
 
 Payment, collection, etc., of tax, delinquency (Act 
 
 Feb. 24, 1919) 
 
 Relanding tobacco shipped for export 
 
 Removal witbout proper stamp, etc 
 
 Sign, failure of manufacturer to put up 
 
 Unlawful removal, sale, etc 
 
 Purchase of tobacco not branded or stamped 
 
 Rates of tax 
 
 (A<;tSept.8,1916) 
 (Act Feb. 24, 1919) 
 
 Records and returns kept by collectors 
 
 Removal except in proper packages or without stamp 
 
 Unlawful 
 
 Returns, attestation (Act Feb. 24, 1919) 
 
 Signs of manufacturers 
 
 Special tax on manufacturers (Act Feb. 24, 1919) 
 
 Buying tobacco from manufacturer who has not paid. . 
 
 Penalty for failure to pay 
 
 Stamps, absence as evidence of nonpayment of tax 
 
 Aflttxing false stamp or stamp before used 
 
 Emptied packages, destruction, etc 
 
 Export 
 
 Forfeited tobacco 
 
 Forging, counterfeiting, etc 
 
 How prepared, furnished and sold 
 
 Removal of tobacco without 
 
 Selling tobacco without 
 
 Statement of manufacturer 
 
 Statistics of leaf tobacco (Act Apr. 30, 1912) 
 
 TOILET PREPARATIONS— 
 
 Alcohol, drawback where used in articles exported (Act Oct. 
 
 3 1913) 1 
 
 Excise tax .\\\\\\V//. ! ^ -V//. !!! ^' ." .\' .' .'(AcrFeb! 24,' igisj '900( 21 ), 907 
 National prohibition act, exception from operation of (Act 
 
 Oct. 28, 1919, Title II) 
 
 TOOLS— 
 
 Distraint, exemption 
 
 TRADE- 
 
 Special occupational tax, {See Occupational ta:ses.) 
 TRADE-MARKS AND TRADE NAMES— 
 
 Excise tax, medicinal preparations sold under (Act Feb. 24, 
 
 1919) 
 
 Liquors, removing under name other than trade name 
 
 TRANSCRIPTS- 
 
 Evidence, Treasury Department books, etc 
 
 Trial for embezzling public money 
 
 TRANSFERS— 
 
 Clerks and employees, classified service. (Act Apr. 25, 1902) 
 
 Duties (Act Aug. 15, 1876) 
 
 From executive department to independent establish- 
 ment and vice versa (Act Oct. 6, 1917) 
 
 From one executive department to anothej- (Act June 
 
 22, 1906) 
 
 Increase of compensation within one year (Act Oct. 6, 
 
 1917) - 
 
 Gaugers - ■ - 
 
 Suits from State courts to United States courts (Act Mar. 3, 
 
 1911) 
 
 Storekeepers 3154, 3163 
 
 TRANSPORTATION— 
 
 Federal control of systems, income taxes. (Act Feb. 24, 1919) 230 
 
 Intoxicating liquor, right to seize. (Act Oct. 28, 1919, TitlelD 
 Stamp tax on passage tfp^zeef- J[}y-M/6^feS'fi?®24, 1919) . 
 
 Page. 
 
 1308 
 
 628 
 
 3385 
 
 391 
 
 3374 
 
 386 
 
 3356 
 
 374 
 
 3372 
 
 385 
 
 3366 
 
 380 
 
 3368 
 
 380 
 
 408 
 
 842 
 
 701 
 
 381 
 
 3357 
 
 374 
 
 3374 
 
 386 
 
 3372 
 
 385 
 
 1309 
 
 629 
 
 3356 
 
 374 
 
 1002 
 
 182 
 
 3367 
 
 380 
 
 3242 
 
 159 
 
 3373 
 
 385 
 
 3375 
 
 386 
 
 3376 
 
 386 
 
 3386 
 
 390 
 
 3369 
 
 383 
 
 3372 
 
 385 
 
 3369 
 
 383 
 
 3374 
 
 386 
 
 3372 
 
 385 
 
 3355 
 
 372 
 
 1,7 
 
 304 
 
 VCO) 
 
 611 
 
 ),907 
 
 544, 549 
 
 4 
 
 351 
 
 3187 
 
 119 
 
 907 
 3449 
 
 886 
 887 
 
 3 
 3 
 
 7 
 3163 
 
 33 
 
 26 
 
 549 
 591 
 
 671 
 672 
 
 65 
 693 
 
 697 
 
 696 
 
 697 
 92 
 
 640 
 87,92 
 
 496 
 360 
 560 
 
1028 
 
 INDEX. 
 
 TKANSPOBTATION TAX— 
 
 Act February 24, 1919 — Section. Page. 
 
 Cash fares, collection of tax 501(6) 535 
 
 Collection 501(6),502 535, 536 
 
 Commodities owned by carrier 501(c) 535 
 
 Credits, overpayments or overcollections 1310 629 
 
 Payment of refunds from receipts 502 536 
 
 District of Columbia, exemptions 500(A) 534 
 
 Exemption, carrier's business 501(c) 535 
 
 Public service 500(A) 534 
 
 Express shipments, rate 500(6) 533 
 
 Ketums 502 536 
 
 Tax payable by whom 501 534 
 
 Freight shipments, rate 500(«) ' 533 
 
 Returns 502 536 
 
 Tax payable by whom 501 534 
 
 Interest, delinquency in payment of tax 502 536 
 
 Leased wire service, rate 500(9) 534 
 
 Returns 502 536 
 
 Tax payable by whom 501 534 
 
 Mileag;e books, collection of tax from 501(5) 535 
 
 Monthly returns 502 536 
 
 Motor vehicles competing with rail or water carriers, taxa- 
 bility 500 533 
 
 Oil transportation by pipe line, basis of tax 501 (d) 535 
 
 Rate 500(e) 534 
 
 Returns 502 536 
 
 Tax payable by whom 501 534 
 
 Parlor cars, etc., rate bOO{d) 534 
 
 Returns 502 536 
 
 Tax payable by whom 501 534 
 
 Partially-used tickets 501(6^ 535 
 
 Passengers, rate 500(c) 533 
 
 Returns • 502 536 
 
 Tax payable by whom 501 534 
 
 • Payment, carrier 502 536 
 
 Time 502 536 
 
 User of f aciliti es 501 (o) 534 
 
 Penalty, delinquency in payment of tax 502 536 
 
 Failure to pay, collect, etc. , tax 1308 628 
 
 Pipe lines, basis of tax 501(d) 535 
 
 Rate 500(e) 534 
 
 Returns 502 536 
 
 Tax payable by whom 501 534 
 
 Rate 500 533 
 
 Refunds of taxes from receipts 502 536 
 
 Returns 502 536 
 
 Attestation 1309 629 
 
 Services or facilities taxable 501(c^ 535 
 
 States, exemption 500(h) 534 
 
 Telegraph, etc. , messages, rate 500(/) 534 
 
 Returns 502 536 
 
 Tax payable by whom 501 534 
 
 Territories, exemption 500(i'i) 534 
 
 Time, payment of tax 502 536 
 
 United States, exemption 500(A) 534 
 
 Act October 3, 1917— 
 
 ( '.ollection 503 871 
 
 Commutation tickets 500 870 
 
 District of Columbia, exemption .502 871 
 
 Exemption 502 871 
 
 Express shipments, collection 503 871 
 
 Computation 501 871 
 
 Payment 501 871 
 
 Rate 500 869 
 
 Returns 503 871 
 
 Digitized by Microsoft® 
 
INDEX. 
 
 1029 
 
 TRANSPORTATION TAX— Continued. 
 Act October 3, 1917 — Continued. Section. Page. 
 
 Freight shipments, collection 503 
 
 Computation 501 
 
 Payment 501 
 
 Rate 500 
 
 Returns 503 
 
 Mileasje books 500 
 
 Monthly returns 503 
 
 Oil transportation by pipe lines, collection 503 
 
 Computation 501 
 
 Payment 501 
 
 Rate 500 
 
 Returns 503 
 
 Parlor cars, collection 503 
 
 Computation 501 
 
 Payment 501 
 
 Rate 500 
 
 Returns 503 
 
 Partially-used tickets 500 
 
 Passengers, collection 503 
 
 Computation 501 
 
 Payment 501 
 
 Rate 500 
 
 Returns , 503 
 
 Payment 501 
 
 Rate of tax 500 
 
 Returns. 503 
 
 Season tickets 500 
 
 Sleeping cars, collection 503 
 
 Computation 501 
 
 Payment 501 
 
 Rate 500 
 
 Returns 503 
 
 States, exemption 502 
 
 Telegraph, etc., messages, collection 503 
 
 Computation 501 
 
 Payment 501 
 
 Rate 500 
 
 Returns 503 
 
 Territories, exemption ^ 502 
 
 United States, exemption 502 
 
 Vessels 500 
 
 TBAVEIi EXPENSES— 
 
 Gangers 3157 
 
 (Act Aug. 27, 1894) 63 
 
 Oaths to accounts (Act Aug. 24, 1912) 8 
 
 Report as to (Act May 22, 1908) 4 
 
 Storekeepers (Act Aug. 27, 1894) 63 
 
 Storekeeper-gaugers (Act June 28, 1902) 
 
 (Act Aug. 27, 1894) 63 
 
 Witnesses, clerks and employees 850 
 
 TREASURES. OF UNITED STATES— 
 
 Deposits of public moneys 3620, 3621 
 
 Public money, duty to safely keep 3639 
 
 Receipts for money receivecl 3621 
 
 TREASURY DEPARTMENT— 
 
 Adjustment of claims and accounts in 236 
 
 Attorneys practicing before (Act July 7, 1884) 3 
 
 Deposit of jjublic moneys 3617, 3620 
 
 Action in case of delinquency 3624 
 
 Members of Congress, use of names of in practicing before 
 
 (Act Apr. 27, 1916) 1 691 
 
 Settlement of accounts 3622 664 
 
 871 
 871 
 871 
 869 
 871 
 870 
 871 
 871 
 871 
 871 
 870 
 871 
 871 
 871 
 871 
 870 
 871 
 870 
 871 
 871 
 871 
 870 
 871 
 871 
 869 
 871 
 870 
 871 
 871 
 871 
 870 
 871 
 871 
 871 
 871 
 871 
 870 
 871 
 871 
 871 
 870 
 
 87 
 95 
 62 
 87 
 86 
 87 
 701 
 
 662, 663 
 667 
 663 
 
 682 
 690 
 662 
 666 
 
 Digitized by Microsoft® 
 
1030 
 
 INDEX. 
 
 TRIAL — Ssotton. 
 
 Offenses begun in one district and completed in anotii-er (Act 
 
 Mar. 3, 1911) 
 
 Procedure, conformity to that in State courts 914, 916 
 
 TBtrSTS— 
 
 Estate tax, property passing under power of appointment 
 
 (Act Feb. 24, 1919) 
 
 Income taxes, credits (Act Peb. 24, 1919) 
 
 Deduction of net losses by fiduciaries .! (Act Peb. 24, 1519) 
 
 Trust estates (Act P«b. 24, 1919) 
 
 TRUSTEES— 
 
 Organizations exempt from income taxes, exemption (Act 
 
 Peb. 24, 1919) 
 
 TBtrSTEES IN BANKBTTPTCY— 
 
 Income tax returns (Act Feb, 24, 1919) 
 
 TYPEWRITING MACHINES— 
 
 Purchase (Act July 3, 1918) 
 
 Restriction as to price (Act July 3, 1918) 
 
 UNAVOIDABLE ACCIDENT— 
 
 Distilled spirits destroyed by , 
 
 (Act Mar. 1, 1879) 
 
 Stamps lost or destroyed by 
 
 UNCERTIFIED CHECKS— 
 
 Receiving in payment of income and excess profits taxes 
 
 (Act Peb. 24, 1919) : 
 
 Taxes payable other than by stamp. (Act Feb. 24, 1919) 
 UNIFORMITY— 
 
 Taxes 
 
 UTSIITED STATES— 
 
 Alcohol, withdrawal (Act Oct. 28, 1919, Title III) 
 
 Bonds. [See Lib-bktt bonds.) 
 
 Exemption from stamp tax (Act Feb. 24, 1919) 
 
 Stamp tax on notes secured by (Act Feb. 24, 1919). 
 
 Certificates of indebtedness. (See Ceetificates of indebt- 
 edness.) 
 
 Definition (Act Feb. 24, 1919) 
 
 Excess profits tax, profits from Government contracts (Act 
 
 Peb. 24, 1919) _ 
 
 Income taxes, citizens of possessions (Act Feb. 24, 1919) 
 
 Credit, interest on obligations of.. (Act Peb. 24, 1919) 
 
 Taxes paid possessions- (Act Feb. 24, 1919) 
 
 Gross income, interest oaobb.gatLons.( Act Feb 24, 1919) 
 
 Officers and employees (ActFeb. 24, 1919) 
 
 Iruformation at source . . . , (Act Fob . 24, 1919 ) 
 
 Laws coextensive with boundaries of 
 
 Liberty bonds. (See Liberty bonds.) 
 
 Name of, suits brought in -- 
 
 Purchase of goods for, free of tax 
 
 Transportation tax, exemption (Act Feb. 24^ 1919) 
 
 UNITED STATE S ATTORNEYS. (See District attorneys. ) 
 UNITED STATES COMMISSIONERS— 
 
 Prisoner, taking before nearest commissioner {Act Ang, 18, 
 
 1894) ,_ 
 
 Warrants, issuance (Act May 28, 1896) 
 
 UNITED STATES COTTON FUTURES ACT. (See Cot- 
 ton ptrruEEs.) 
 
 Page. 
 
 42 
 914, 916 
 
 638 
 
 647 
 
 402 
 
 219,222 
 
 204 
 
 219 
 
 526 
 
 490, 493 
 
 477 
 
 489 
 
 231(12) 
 
 497 
 
 239 
 
 503 
 
 4 
 1 
 
 60 
 
 57 
 
 3221-3223 
 
 6 
 
 3315 
 
 142-144 
 265 
 270 
 
 1010 
 
 1314 
 
 131 
 
 132, 631 
 
 11 
 
 1101 
 
 18 
 
 368 
 
 554 
 560 
 
 626 
 
 301(c), 302 
 
 514, 515 
 
 260 
 
 511 
 
 216, 236 
 
 487, 501 
 
 222 
 
 493 
 
 213 
 
 482 
 
 213 
 
 481 
 
 256 
 
 509 
 
 3448 
 
 590 
 
 919, 3213 
 
 «38, 132 
 
 3464 
 
 606 
 
 500(&) 
 
 534 
 
 
 660 
 
 19 
 
 659 
 
 Digitized by Microsoft® 
 
4 
 
 70 
 
 26 
 
 360 
 
 3 
 
 2982 
 
 70 
 607 
 
 
 154 
 
 
 560 
 
 3282 
 3282 
 
 231 
 231 
 
 10 
 
 367 
 
 4 
 3282 
 
 351 
 231 
 232 
 
 INDEX. 1031 
 
 UNITED STATES COURTS. (See Circuit courts of section Page. - 
 
 appeals; District courts; Supreme Court.) 
 
 Removal of causes to, from State courts.. (Act Mar. 3,-1911) 33 640 
 
 UNIVERSITIES. (.See Educational organizations.) 
 USELESS PAPERS— 
 
 Disposition g92 
 
 V. 
 VACANCY— 
 
 Collector, office of : . 3149 gO 
 
 VEHICLE— 
 
 Definition 
 
 Seizure where used in transportation of intoxicating liquor 
 
 (Act Oct. 28, 1919, Title 11) 
 
 VESSELS. {See Boats; Motor boats.) 
 
 Definition 
 
 Foreign war vessels, purchasing 
 
 Retail dealers in liquors, etc., on, special tax stamp (Jt. Res. 
 
 May 8, 1876) _ 
 
 Stamp tax on passage tickets (Act Feb . 24, 1919) . 
 
 Transportation tax. (See Transportation tax.) 
 VINEGAR— 
 
 Alcohol, percentage of 
 
 Conditions under which may be manufactured 
 
 Denaturation or raise of proof of distilled vinegar (Act Oct. 
 
 28, 1919, Title III) 
 
 National prohibition act, exception from operation of (Act 
 
 Oct. 28, 1919, Title II) 
 
 Premises on which made 
 
 (Act June 14, 1879) . 
 VINTNERS— 
 
 Special-tax liability 3246 176 
 
 VIRGIN ISLANDS— 
 
 Laws applicable to (Act Mar. 3,1917) 4 625 
 
 Merchandise from, tax on (Act Mar. 3, 1917) 3, 5 625, 626 
 
 (Act Feb. 24, 1919) 1304 626 
 
 Shipments to, tax on (Act Feb. 24, 1919) 1304 626 
 
 VOCATIONAL REHABILITATION— 
 
 Income taxes, deduction of contributions to fund for (Act 
 
 Feb. 24, 1919) 214 486 
 
 VOLUNTARY SERVICE— 
 
 Acceptance by clerks or employees (Act May 1, 1884) 698 
 
 VOUCHERS— 
 
 Accounts of collectors, settlement of 3211 130 
 
 W. 
 WAR. {See Army and Navy.) 
 
 Foods and foodstuffs, use in manufacture of liquor during 
 
 (Act Aug. 10, 1917) 15 200 
 
 (Act Nov. 21, 1918) 1 204 
 
 Munition manufacturer's tax. {See Munition manufac- 
 turer's TAX.) 
 WAR FINANCE CORPORATION— 
 
 Bonds, exemption from taxation (Act Apr. 5, 1918) 16 583 
 
 (Act July 9, 1918) 3 583 
 
 (Act Mar. 3, 1919) 4 586 
 
 Income taxes, credits of interest on bonds (Act Feb. 24, 
 
 1919) 216, 236 487, 501 
 
 Groas income, intel'est on bonds. . . .(Act Feb. 24, 1919) 213 482 
 
 WAR PROFITS TAXES. {See Excess profits taxes.) 
 
 Digitized by Microsoft® 
 
1032 
 
 INDEX. 
 
 1919)/ 
 
 WAR PROHIBITION ACT. {See National prohibition.) 
 
 Definition (Act Oct. 28, 1919, Title I) 
 
 WAREHOUSES. {See Distilled spirits; Fermented 
 
 LIQUORS.) 
 
 Distilled spirits, purchase and sale of receipts (Act Oct. 
 
 28, 1919, Title II) 
 
 Exports, manufacture of certain articles intended for ex- 
 portation in bonded warehouses 
 
 (Act Oct. 3, 1913) 
 
 Industrial alcohol (Act Oct. 28, 1919, Title III) 
 
 Storage of liquor manufactured before passage of national 
 
 prohibition act (Act Oct. 28, 1919, Title II) 
 
 WARRANTS— 
 
 Arrest, issuance (Act May 28, 1896) 
 
 Marshal 'fl duty;. ._ (Act Aug, 18,. 1894) 
 
 National prohiBitioni act, offenders against (Act Oct. 
 28, 1919, Title II)._ 
 
 Offenders against United States 
 
 Use of money appropriated to pay fees of marshals, etc. 
 (Act Aug. 18, 1894).... 
 
 War prohibition act, offenders against (Act Oct. 28, 
 
 1919, Title I) 
 
 Distraint proceedings. {See Distraint.) 
 Search warrants. {See Searches and seizures.) 
 WEAR AND TEAR^ 
 
 Income taxes, deduction (Act Feb. 24, 
 
 WEARING APPAREI.— 
 
 Distraint, exemption 
 
 Excise tax : (Act Feb. 24, 1919) 
 
 Luxury tax (Act Feb. 24, 1919) 
 
 WHITE PHOSPHOROtrSMATCHES(ActApr.9, 1913)— 
 Assessment of tax on matches removed without stamps. . .. 
 
 Bonds, manufacturers 
 
 Books, manufacturers 
 
 Branding packages 
 
 Caution label 
 
 Confiscation, matches exported or attempted to be exported . 
 
 Date act effective ._ 
 
 Definition 
 
 Destruction, matches exported orattempted tobe exported. 
 
 Stamps 
 
 Evasion of tax, penalty 
 
 Existing law applicable 
 
 Exports 
 
 Forfeitures, defrauding or attempting to defraud 
 
 Evasion of tax 
 
 Recovery 
 
 Forgery of stamps 
 
 Fraud, failure to cancel stamps 
 
 Imports 
 
 Inspection of imported matches 
 
 Inventories, manufacturers 
 
 Labels 
 
 Marking packages 
 
 Notices, manufacturers 
 
 Numbers affixed to factories 
 
 Packages 
 
 Penalties, affixing stamp of less amount than tax 
 
 Defrauding or attempting to defraud 
 
 Exporting matches 
 
 Failure to stamp packages 
 
 Noncancellation of stamps 
 
 Nonregistration of manufacturers 
 
 Section. 
 
 347 
 
 351 
 
 3433 
 
 607 
 
 IV 
 
 608 
 
 1 3-9, 11-19 
 
 366-369 
 
 i 37 
 
 364 
 
 19 
 
 659 
 
 
 660 
 
 2 
 
 350 
 
 1014 
 
 642 
 
 
 660 
 
 2,4 
 
 347, 348 
 
 f 214, 
 
 485, 
 
 \ 215, 234 
 
 487, 499 
 
 3187 
 
 119 
 
 900 
 
 544 
 
 904 
 
 546 
 
 9 
 
 459 
 
 2 
 
 457 
 
 2 
 
 457 
 
 12 
 
 460 
 
 12 
 
 460 
 
 11 
 
 460 
 
 17 
 
 461 
 
 1 
 
 457 
 
 11 
 
 460 
 
 8 
 
 459 
 
 4 
 
 458 
 
 16 
 
 461 
 
 11 
 
 460 
 
 7 
 
 459 
 
 4 
 
 458 
 
 14 
 
 461 
 
 8 
 
 459 
 
 3- 
 
 458 
 
 10 
 
 459 
 
 10 
 
 459 
 
 2 
 
 457 
 
 12 
 
 460 
 
 12 
 
 460 
 
 2 
 
 457 
 
 2 
 
 458 
 
 3 
 
 458 
 
 5 
 
 458 
 
 7 
 
 459 
 
 11 
 
 460 
 
 4 
 
 458 
 
 3 
 
 458 
 
 2 
 
 457 
 
 Digitized by Microsoft® 
 
m. 
 
 Page. 
 
 13 
 
 460 
 
 12 
 
 460 
 
 14 
 
 461 
 
 6 
 
 459 
 
 3 
 
 458 
 
 2 
 
 457 
 
 15 
 
 461 
 
 11 
 
 460 
 
 10 
 
 460 
 
 2 
 
 457 
 
 2 
 
 458 
 
 3-9 
 
 458, 459 
 
 INDKX. 1033 
 
 WHITE PHOSPHOROUS MATCHES (Act Apr. 9, 
 1912)— Continued. 
 
 Penalties — Continued. Section. 
 Omitting things required and doing things forbidden. . 
 
 Packages, omitting to mark, brand, etc 
 
 Recovery 
 
 Piemoving or defacing stamp or using stamp unlawfully. 
 
 Rate of tax 
 
 Registration, manufacturers 
 
 Regulations, Commissioner's authority to make 
 
 Exports 
 
 Imports 
 
 Returns, manufacturers 
 
 Signs, manufacturers 
 
 Stamps 
 
 WHOUSSALE DEALERS— 
 
 Particular articles. {See specific heads.) 
 WINES. {See Distilled spirits; National phohibitiom.) 
 
 Acid and alcohol, per cent of (Act Feb. 24, 1919) 610 337 
 
 Additional tax (Act Oct. 3,1917) 309-312 865,866 
 
 (Act Feb. 24, 1919) 605 196 
 
 Advertisements in certain States (Act JIar. 3,1917) 5 296 
 
 Alcoholic strength (Act Oct. 1,1890) 43 326 
 
 Allowance for unavoidable loss (Act Feb. 24, 1919) 622 312 
 
 Artificial wines (Act Feb. 24, 1919) Gil 338 
 
 Assignment of gangers, etc (Act Feb. 24, 1919) 621 191 
 
 Bonds, wine makers (Act Sept. 8, 191 6) 402f J) 832 
 
 Chainpagne, rate of tax (Act Oct. 22, 1914) ' 2 7G4 
 
 (Act Sept. 8 , 1916) 402(f) 835 
 
 (Act Feb. 24, 1919) 613 339 
 
 Collection of tax on imported wines (Act Feb. 24, 1919) 619 341 
 
 Compensation of gaugers, etc (Act Feb. 24, 1919) 621 191 
 
 Definitions, natural ^\ine (ActSept. 8,1916) 401 831 
 
 (Act Feb. 24, 1919) 610 337 
 
 Wine spirits (Act Oct. 1,1890) 43 .326 
 
 Distilling material, wine used as (Act Feb. 24, 1919) 618(6) 341 
 
 Evasionof tax, penalty (Act Feb. 24, 1919) 620 341 
 
 Exemptions from tax (Act Feb. 24, 1919) 605 196 
 
 Export, sales or leases of articles for (Act Feb. 24, 1919) 1.310 630 
 
 Withdrawal of spirits to fortify wines intended for CAct 
 
 Oct. 1, 1890) ;... 46 328 
 
 Family use, winesfor (Act Feb. 24, 1919) 616 340 
 
 Floor tax (Act Feb. 24, 1919){ g^^^^g^f^ i?,c>]lA() 
 
 Food materials, restrictions on use of. . .(Act Aug. 10, 1917) 15 200 
 
 (Act Nov. 21, 1918) 1 204 
 
 Fortification, grape brandy (Act Oct. 1, 1890) 42-48 326-830 
 
 (Act Feb. 24, 1919) 612 339 
 
 Fortified wines, rate of tax (Act Oct. 22, 1914) 2. 765 
 
 Gaugers, assignment (Act Feb . 24, 1919) 621 191 
 
 Gin, additional tax (Act Feb. 24, 1919) 605 196 
 
 Imitation wines, payment of tax 3328 325 
 
 Imported wines, collection of tax on. . . (Act Feb. 24, 1919) 619 341 
 
 Customs bonded warehouse (Act Feb. 24, 1919) 600(6) 194 
 
 Inventories (ActSept. 8,1916) 402(6) 832 
 
 Isabels (ActSept. 8,1916) 402(6) 832 
 
 Location of premises where wines may be fortified (Act Oct. 
 
 1,1890)... 45 327 
 
 Losses, unavoidable, allowances for (Act Feb. 24, 1919) 622 342 
 
 Notice by wine makers (ActSept. 8,1916) 402(6) 832 
 
 Payment of tax, imitation wines 3328 325 
 
 Stamps....' (ActSept. 8,1916) 402(6) 832 
 
 (Act Feb. 24, 1919 616 340 
 
 Vendee or lessee (Act Feb. 24, 1919) 1312 630 
 
 Digitized by Microsoft® 
 
1034 INDEX. 
 
 WINES— Continued. Section. 
 
 Penalties, evasion of tax, etc (Act Sept. 8, 1916) 402(/} 836 
 
 Failure to pay, collect, etc., tax.... (Act Feb. 24, 1919) 1308 628 
 
 Use of foocf products (Act Nov. 21, 1918) 1 204 
 
 Using spirits in fortifying wines contrary to law (Act 
 
 Oct.1,1890) 48 330 
 
 Rate of tax (Act Oct. 22, 1914) 2 763 
 
 (Act Sept. 8,1916) 402 '831,835 
 
 Regulations, uniformity (Act Feb . 24, 1919) 605 196 
 
 Reimportation (Act Oct. 1, 1890) 47 329 
 
 Remission of tax on grape brandy accidentally destroyed 
 
 (ActJune7, 1906) 5 344 
 
 Removal of domestic Avines from bonded premises (Act Feb. 
 
 24, 1919) 618(a) 340 
 
 Removing under name other than trade name 3449 591 
 
 Restrictions on use of food materials (Act Aug. 10, 1917) 15 200 
 
 (Act Nov. 21, 1918) 1 204 
 
 Retiu'ns, attestation (Act Feb . 24, 1919) 1309 629 
 
 Sacramental purposes, manufacture, etc., for (Act Oct. 28, 
 
 1919, Title II) 3,6 351,353 
 
 Shipmentsinto State prohibitingsale.. -(Act Mar. 3, I9I7) 5 296 
 
 Sparkling wine, rate of tax (Act Feb . 24, 1919) 613 339 
 
 Special tax on vintners 3246 176 
 
 Spirit meters, locks and seals (Act Feb . 24, 1919) 621 191 
 
 Stamps (Act Oct. 22, 1914) 2 764 
 
 Counterfeiting, etc 3328 325 
 
 Payment of tax by (Act Feb. 24, 1919) 616 340 
 
 Still wines (Act Sept. 8, 1916) 402 831 
 
 (Act Felj. 24, 1919) 611 338 
 
 Storekeepers-gaugers, assignment (Act Feb. 24, 1919) 621 191 
 
 Sugar solution, use of (Act Feb. 24, 1919) 610 337 
 
 Supervision of fortification of (Act Oct. 1, 1890) 45 327 
 
 Sweet wine, floor tax (Act Feb. 24, 1919) 615 340 
 
 Unavoidable loss, allowance for (Act Feb . 24, 1919) 622 342 
 
 Vermuth (Act Feb. 24, 1919) 611 338 
 
 Water, addition of (Act Feb. 24, 1919) 605 196 
 
 Winespirits (Act Oct. 1, 1890) 42-48 326-330 
 
 (Act Feb. 24, 1919) 612 339 
 Withdrawal of spirits to fortify wines intended for export 
 
 (Act Oct. 1, 1890) 46 328 
 
 (Act Sept. 8, 1916) 402(c), 403 833, 837 
 WITHHOIiBING— 
 
 Income tax at source (Act Feb. 24, 1919) 221, 237 491, 502 
 
 Claims for credits (Act Feb . 24, 1919) 217 488 
 
 Indemnity of withholding agents . . . (Act Feb . 24, 1919) 221 492 
 
 Returns by agents (Act Feb. 24, 1919) 221 491 
 
 WITNESSES. {See Evidence.) 
 
 Claim cases, subpoenas 184 684 
 
 Competency, laws of State to govern 858 643 
 
 Person charged with crime (Act Mar. 16, 1878) 643 
 
 Expenses of clerks or employees where sent away as wit- 
 nesses 850 701 
 
 Jurisdiction of district courts to compel attendance (Act 
 
 Feb. 24,1919) ' 1318 631 
 
 National prohibition act, proceedings for violation of (Act 
 
 Oct. 28, 1919, Title II) 30 362 
 
 Penalties or forfeitures, proceedings for 5295 655 
 
 Returns, taking testimony by Commissioner, etc., for 
 
 purpose of making (Act Feb. 24, 1919) 1305 628 
 
 WORDS AND PHRASES. {See Definitions.) 
 WORTHLESS DEBTS— 
 
 Income taxes, deduction (Act Feb. 24, 1919) 214,234 485,499 
 
 Digitized by Microsoft® 
 
INDEX. 1035 
 
 WRITS — Seclion. Page. 
 Obstructing or resistina; officer in ser\'ina;, penalty' (Act 
 
 Mar. 4, 1909) ". ' ." 140 674 
 
 WRITS OF ERROR— 
 
 Bond, requiring from United States 1001 652 
 
 Circuit Court of Appeals, limitations. - .(Act Mar. 3, 1891) 11 650 
 
 Supreme Court, limitations 1008 652 
 
 (Act Sept. 6, 1916) 6 651 
 
 Y. 
 YACHTS— 
 
 Excise tax (Act Feb. 24, 1919) 900(20) 544 
 
 Special tax OIL use of (Act Feb. 24, 1919) 1003 183 
 
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