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 Bender's war revenue law, 1914.An act to 
 
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WAR REVENUE LAW 
 19 I 4. 
 
 AN ACT TO INCREASE THE INTERNAL REVENUE. 
 
 AND FOR OTHER PURPOSES 
 
 Approved October 22, 1914 
 
 ANNOTATED 
 
 WITH REFERENCE TO EARLIER ACTS AND 
 TO OTHER EXTANT LAWS 
 
 TABLE OF CASES, INDEX. ETC. 
 
 BY THE PUBLISHER'S EDITORIAL STAFF. 
 
 ALBANY, N. Y. 
 
 MATTHEW BENDEE & CO. 
 
 1914 
 
COPYBIGHT, 1914, 
 
 Bl MATTHEW BENDER dc 00. 
 
 WM. BOTD FEINTING COMPANY, INCOSPOBATXD, 
 ALBANY, N. I. 
 
PREFACE. 
 
 EXCUSE IF NOT JUSTIFICATION 
 
 " The War Ee venue Act has 
 been especially productive of 
 doubtful questions." — ^Report of 
 Atty. Gen., 1898, p. iii. 
 
 According to the latest official 
 record, based upon the figures of 
 the Department of Justice, there 
 were 4,431 cases on Internal Rev- 
 enue Law pending in the Federal 
 courts. (Report of Commissioner 
 for 1913, p. 18.) 
 
 The new Act repeals nothing 
 and adds or revives much statute 
 law — ^much of the very sort of 
 thing in the way of hasty legis- 
 lation which makes for litigation, 
 as well as administrative diffi- 
 culty. 
 
 [ill] 
 
TABLE OF CONTENTS. 
 
 Page 
 
 Preface iii 
 
 Introductory, Historical and General vii 
 
 Table of U. S. Internal Revenue Statutes xv 
 
 Other Internal Revenue Taxes in force xxi 
 
 Act of October 22, 1914 1-124 
 
 Beer, etc 1, 2 
 
 Wines, etc 4, 16 
 
 Special taxes 18, 22, 4& 
 
 Tobacco mfrs., etc 39, 43 
 
 Adhesive stamps 46 
 
 Schedule A., documentary stamps 80, 89 
 
 Schedule B., mercantile stamps 71, 106 
 
 Other laws made applicable 110 
 
 Assessment and collection Ill 
 
 Penalties 114 
 
 Protest and reclamation 117 
 
 Construction of laws 119 
 
 Taking effect 124 
 
 Biographical Notes 129 
 
 Table of Taxes 135 
 
 Table of Cases 143 
 
 Condensed catch line index to the Act 161 
 
 Index 167 
 
 [V] 
 
INTRODUCTORY AND GENERAL. 
 
 The Internal Revenue Act of 1914, Act of Octo- 
 ber 22, 1914, will doubtless commonly be referred to 
 as a War Tax, altbougb it is not technically such 
 by its title. It is rather a rule-of-thumb expedient 
 for raising needed money than a carefully devised 
 instrument of scientific finance. The very use of 
 the word " war," in and out of Congress, implies 
 that, whereas under normal conditions other sources 
 of revenue, such as the tariff, are preferable, a state 
 of war may so reduce foreign trade and customs 
 duties as to necessitate a resort to additional internal 
 revenue measures. We experienced this in 1813, in 
 1861, in 1898, and now again (though the present 
 war is not our own), in 1914. 
 
 In a sense, excise and stamp taxes are more bur- 
 densome and annoying than tariff duties ; and memo- 
 ries and traditions of abuses incident to crude, 
 primitive excise systems partly explain this feeling.^ 
 
 1. Even in Hamilton's day the pie " . . . " would convulse 
 
 opposition to excise was more the government; let loose a 
 
 tra!ditional than rational. There swarm of harpies who, under the 
 
 was, perhaps, an economic ex- denomination of revenue officers, 
 
 planation of the Whisky Rebel- will range the country, prying 
 
 lion and some other forms of into everyman's house and af- 
 
 opposition. We now smile, how- fairs, and, like the Macedonian 
 
 «ver, at the talk in the early phalanx, bear down all before 
 
 Congress about internal revenue them " . . . " grog, a necea- 
 
 taxes per se being, "the horror sary article of drink" . . . 
 
 of all free states " . . . " hos- " a shirt shall not be washed 
 
 tile to the liberties of the peo- without an excise," etc. It has 
 
 [Til] 
 
Tiii INTRODUCTORY AND GENERAl.. 
 
 They are, therefore, later applied in times of need^ 
 and earlier abandoned when the financial stress is 
 relaxed. Yet they fall, for the most part, upon 
 things which are not vital necessaries, and they are 
 in fact rather irritating to the prosperous than bur- 
 densome to the poor. 
 
 The Federal Government long ago learned the 
 value of such taxes as the most readily available 
 means of supplying an extraordinary need in an 
 emergency.^ And, while we are as yet spared the 
 necessity of taxing nearly everything nearly all the 
 time, as is true of some other lands, our people are 
 now familiar with the system and fairly persuaded 
 of its usefulness. The general scheme has been per- 
 manently established since 1862 and furnishes the 
 administrative means of collecting an increased 
 revenue in any emergency. It is clearly a good thing 
 to have, and the people will not object, if it is not 
 used too much. The extended schedules^ of the 
 civil war period, which produced four times as 
 much revenue in a single year as the tariff, were 
 
 always been the way of politicians sought to rerenforce the import 
 
 to call a soap tax a " tax on duties and to prepare the way 
 
 cleanliness," and a paper tax a for collecting a revenue in time 
 
 "tax on knowledge." The Con- of war, when the usual sources 
 
 gressional debates on the present of taxation should become dry." 
 
 Act, aside from a sensational ef- Bollea, Financial History of the 
 
 fort to complicate the matter by U. S., 1789-1860, p. 124. 
 
 admixing the bad " cotton situ- 2. The revenue measures of the 
 
 ation," turned largely on the civil war period were so complex 
 
 partisan political significance of that Congress was sometimes 
 
 adopting one rather than an- driven to passing a special ap- 
 
 other of the available means of propriation to cover the prepara- 
 
 obtaining needed public funds. tion of an index for the use of 
 
 1. "The excise was part of the members. 15 Stat. 237. 
 iystem by which Hamilton 
 
INTRODUCTORY AND GENERAl.. ix 
 
 rapidly narrowed until the generation of the 
 Spanish war was almost surprised to learn that in- 
 ternal revenue might be made to include other items 
 than liquors and tobacco. The War Tax of 1898 
 was essentially an adoption and rough adaptation 
 of some of the features of earlier acts. It served 
 its purpose and was, for the most part, repealed in 
 1902. Congress, facing a new crisis, induced or at 
 least threatened by a general war in Europe, has 
 evidently and correctly concluded that the American 
 people no longer consider reasonable internal taxes 
 " infernal." 
 
 In each instance of the passage of such a measure 
 it has been promised to be temporary, and in each 
 instance the promise has been kept. The present 
 Act itself fixes December 31, 1915, as the date when 
 the emergency taxes shall cease. They will be 
 acquiesced in, if for no better reason than a dread 
 of possible alternatives of greater probable oppres- 
 siveness.^ 
 
 Our so-called war taxes certainly do not " beat 
 ihe Dutch." The whole scheme, as a system, had 
 
 1. It is interesting to note shows consciousness of the one, 
 that, as long ago as 1888, the habitual unconsciousness of the 
 present executive, Woodrow Wil- other. These license taxes, then, 
 son, wrote as follows: "The are the best indirect taxes that 
 people ought to be made to feel can be laid, for a double reason; 
 their fiscal policy all the time; they are taxes which the people 
 otherwise they will never give — or at any rate a . . . part 
 regular or adequate heed to it. of the people feel that they are 
 And there would seem to be no paying; and they fall upon arti- 
 Toom for doubt that the country cles of luxury, not upon articles 
 feels the whiskey and tobacco of necessity." The National Rev- 
 license tax much more than it enues, edited by Albert Shaw, 
 feels the duties on imports. It 1888, p. 109. 
 
X INTRODUCTORY AND GENERAl.. 
 
 its origin in Holland, where the powerful merchants, 
 to lighten the burden of direct taxes on their own 
 capital, devised methods of indirect taxation or ex- 
 cise as the best means of scattering the weight. The 
 Stamp Tax adopted in 1624 is said to have been the 
 winner of a prize contest which was publicly adver- 
 tised as a method of accelerating inventive genius 
 in the field of finance. The civil wars induced Eng- 
 land to try some features of the excise plan, and a 
 general stamp tax was imposed in 1694. The Stamp 
 Act of 1765 helped to precipitate the American Revo- 
 lution. And several of the early English Acts are 
 of interest, in that our legislators have naturally 
 looked first to them for practical precedents. But, 
 as revenue enactments neither involve nor illustrate 
 many scientific principles, either of law or of eco- 
 nomics, there is little to be gained for our present 
 purposes by examining foreign analogies. 
 
 The Act of 1914 is so substantially a re-enactment, 
 though with many omissions, additions and altera- 
 tions, of the Act of 1898 ; and this emergency legisla- 
 tion is to such extent a thing apart from the main 
 and relatively permanent body of internal revenue 
 law, that it will best and most promptly serve the 
 needs of the legal profession and the public to have 
 a manual specifically devoted to these temporary 
 measures, with appropriate reference to the perman- 
 ent system, which has its own literature, and to the 
 Act of 1898. The present book covers more par- 
 ticularly the special or license taxes, the stamp tax 
 and other features of the emergency legislation, with 
 
INTRODUCTORY AND GBNBRAl.. a 
 
 references to the general provisions wMch. are ap- 
 plicable from the Revised Statutes and other laws. 
 The " world situation " is such that, as was inti- 
 mated in the congressional debates on the Act, not 
 only may these emergency taxes be extended, but 
 further features of earlier excise legislation may 
 have to be revived. In view of this, as well as be- 
 cause it is generally illustrative, some of the relevant 
 older material is retained in this book in a condensed 
 form. 
 
 There should be less uncertainty in applying the 
 new law than in 1898, even where points in question 
 have not been judicially passed upon. For there is 
 now available a mass of relatively recent interpreta- 
 tion which took definite shape after the initial con- 
 fusion of re-applying (1898) a system long unused. 
 A great many matters have been through the courts, 
 and even the administrative precedents under the 
 Act of 1898 will doubtless be generally followed by 
 the department as to the re-enacted and analogous 
 provisions. 
 
 Although departmental rulings^ do not bind, nor 
 
 1. The Commissioner's rulings, Act of 1898 were issued: Vol. 
 in correspondence with inquirers I in January, 1899 (Treas. Dept. 
 or collectors, or in special or gen- Document No. 2089, reprint with 
 eral circulars, are printed in the appendix) ; Vol. II in January, 
 periodic publication of Treasury 1900 (Doc. No. 3168, with ap- 
 Decisions. To make these rul- pendix), and Vol. Ill in Janu- 
 ings, or such of them as continue ary, 1901, covering 1900, and be- 
 in force, more accessible and con- ginning the numbering again at 
 venient, the Department from No. 1. (Doc. No. 2217.) 
 time to time issues general eir- The compilations include the 
 culars and even fuller compila- general circulars and are topi- 
 tions. Three volumes of Com- cally indexed. A new official edi- 
 pilations of Decisions under the tion, or a similar circular, will 
 
xii INTRODUCTORY AND GENERAL. 
 
 even always guide, the courts, they are authorita- 
 tive and cannot be over ruled by any other executive 
 oflScer. They must be complied with before appeal 
 can be had to a court. T. D. 20459, Dec. 22, 1898. 
 Much needless trouble results from futile attempts 
 to avoid a tax which has been imposed and insisted 
 upon by the revenue officers. There are provisions 
 for correction and for refund; and, where it is im- 
 practicable to procure, upon courteous application, 
 an acceptable ruling within the penalty time limit, 
 it is better to pay the tax under protest and there- 
 after apply for refund and, if refused, appeal to the 
 <50urts. E. S., § 3226. " The idea that every tax- 
 payer is entitled to the delays of litigation is un- 
 reason." Swayne, J., in (1880) Springer v. U. S., 
 102 U. S. 586, 594; 26 L. Ed. 253. 
 
 " It is a general and just principle of law * * * 
 that, where a taxpayer insists upon relief, he should 
 be required to settle the amount fairly due from 
 him, whether the proper technical steps have been 
 taken or not, before any relief is granted to him." 
 (1900) Robards v. Franks, 103 Fed. Rep. 276, citing 
 (1875) State Railroad Tax Gases, 92 U. S. 575, 23 
 L. Ed. 663. 
 
 " No suit for the purpose of restraining the as- 
 doubtless be issued by the Treas- the earlier period, 1864-1898. was 
 ury Department, covering queg- issued in 1906 as Tres. Dept. 
 tions which are sure to arise in Doc. No. 3438. This period had 
 applying the present law. These been reported in the Internal 
 rulings are generally cited, " T. Revenue Record (which was not 
 D." (Treasury Decision). published after Dec, 1897). 
 
 A digest by Yerkes, covering 
 
INTRODUCTORY AND GENBRAX,. xlii 
 
 sessment or collection of any tax shall be maintained 
 in any court." R. S. 3224. 
 
 (1870) PuUan v. Kinsinger, 2 Abb. U. S. 94; (1874) U. S. v. 
 Black, 11 Blatchf. U. S. 543, 128 U. S. 40; (1883) Snyder v. Marks, 
 109 U. S. 189, 27 L. Ed. 901; (1881) V. S. v. Savings Bank, 104 
 U. S. 728, 26 L, Ed. 908. 
 
 Collection of a State license tax cannot be stayed 
 by injunction, even if tbe tax is discriminatory, ex- 
 tortionate and illegal. It should be paid and the 
 proper remedy sought. (1904) "West. Un. Tel. v. 
 Winnsboro, 71 S. 0. 231. 
 
 As to the value and force of administrative rul- 
 ings, see: (1890) Schell's Executors v. Fauche, 138 
 U. S. 562, 572 (tariff). " In all cases of ambiguity 
 the contemporaneous construction, not only of the 
 courts, but of the departments, and even of the offi- 
 cials whose duties it is to carry the laws into effect, 
 is universally held to be controlling." 30 L. Ed. 627. 
 
 See also (1886) U. S. v. Hill, 120 U. S. 169, 30 L. Ed. 627 
 (naturalization fees) ; (1901) Fairbank v. U. S., 181 U. S. 283, 308, 
 45 Li. Ed. 862; (1901) McClain v. Penna, etc., Co., 108 Fed. Rep. 
 618, 620; (1902) McNally v. Field, 119 Fed. Rep. 445, 448; (1904) 
 U. S. V. Cole, 134 Fed. Rep. 697; (1903) Wheaton v. Weston & 
 Co., 128 Fed. Rep. 151, 153, where the court " regrets to be ob- 
 liged to differ with" an attorney-general; (1890) St. Paul, etc., 
 Ry. Co. V. Phelps, 137 U. S. 528, 34 L. Ed. 767 (land grants); 
 (1890) Merritt v. Cameron, 137 U. S. 542, 34 L. Ed. 772; (1874) 
 Smythe v. Fiske, 23 Wall. 374, 382 (tariff). 
 
 In an early case the court found the commissioner 
 too ready to rule both ways, and, in determining 
 what the law actually was, gave little weight to such 
 
xiv INTRODUCTOKY AND GENERAL. 
 
 rulings. (1867) Cardinel v. Smith, Deady U. S., 197, 
 204. 
 
 See notes on Construction under § 23, post. 
 
 As to whether a " ruling " might estop the gov- 
 ernment where, without wrong intent, it has been 
 relied on by a person proceeded against: 
 
 See (1904) Christie-Street Co. v. U. S., 129 Fed. Rep. 506. 
 See this case cited and quoted elsewhere. And see (1871) 
 Hirsh V. Commonwealth (Va.), 21 Gratt. 785. Department regu- 
 lations may have the force of law; (1895) In re Huttman, 70 
 Fed. Rep. 699 (divulging facts from license applications) ; (1879) 
 Ex parte Reed, 100 U. S. 13, 25 L. Ed. 538, (navy) ; see (1901) 
 Spreckels v. McClain, 109 Fed. Rep. 76; (1902) 113 Fed. Rep. 
 244. But not defeat the law; (1877) U. S. v. 200 Barrels, 95 U. 
 S. 671, 24 L. Ed. 491; (1882) Campbell v. V. S., 107 U. S. 407, 
 410, 27 L. Ed. 592 (exporter's drawback) ; (1891) U. S. v. Baton, 
 144 U. S. 677, 686, 36 L. Ed. 591 (oleomargarine) ; (1912) Marks 
 V. U. S., 196 Fed. Rep. 476, 479 (opium case: "The treasury 
 department cannot repeal an Act of Congress ") ; see (1886) 
 U. S. V. Symonds, 120 U. S. 46, 30 L. Ed. 557 (navy) ; (1896) In 
 re Kollock, 165 U. S. 526, 41 L. Ed. 813 (oleomargarine). 
 
 The secretary of the treasury has the power to make regula- 
 tions (R. S. § 161), and a regulation is a proper one which for- 
 bids a collector to produce ofacial records (distillers' reports) 
 in a State court. (1900) Boske v. Comingore, 177 U. S. 459, 
 affirming (1899) 96 Fed. Rep. 552; (1903) In re Lamberton, 124 
 Fed. Rep. 446. R. S. § 3204, amended by June 21, 1906, requires 
 the collector to certify certain records to local prosecuting 
 officers. 
 
GENERAL TABLE OF STATUTES. 
 
 The development of the Internal Eevenue system 
 and legislation in the U. S. may be traced through 
 the statutes, as follows: 
 
 March 3, 1791, ch. 15, 1 Stat. 199. 
 
 Excise on spirits. 
 June 5, 1794, ch. 45, 1 Stat. 373. 
 
 Internal duties on carriages for persons. 
 May 28, 1796, ch. 37, 1 Stat. 478. 
 
 Increasing carriage duties. 
 July 6, 1797, ch. 11, 1 Stat. 527. 
 
 Stamp tax on documents. 
 December 15, 1797, ch. 1, 1 Stat. 536. 
 
 Postponing stamp tax of 1797. 
 March 19, 1798, ch. 20, 1 Stat 545. 
 
 Amending stamp tax of 1797. 
 April 7, 1798, ch. 25, 1 Stat. 547. 
 
 Extending law of 1794. 
 July 14, 1798, ch. 75, 1 Stat. 597. 
 
 Direct tax on dwellings and slaves. See note, 1 Stat. 580, 
 
 for list of direct tax acts. 
 February 28, 1799, ch. 17, 1 Stat. 622. 
 
 Amending stamp tax of 1797. 
 April 23, 1800, ch. 31, 2 Stat. 40. 
 
 Establishing a general stamp office. 
 March 3, 1801, ch. 19, 2 Stat. 109. 
 
 Amending Act of 1800. 
 April 6, 1802, ch. 19, 2 Stat. 148. 
 
 Repealing internal taxes. 
 July 22, 1813, ch. 16, 3 Stat. 22. 
 
 Method of collecting direct and internal taxes. 
 July 24, 1813, ch. 22, 3 Stat. 39. 
 
 Establishes office of commissioner of internal revenue, 
 [xv] 
 
xvi GENERAL, TABLE OF STATUTES. 
 
 July 24, 1813, ch. 24, 3 Stat. 40. 
 
 Carriage tax. 
 July 24, 1813, ch. 25, 3 Stat. 42. 
 
 Distillers. 
 July 24, 1813, ch. 26, 3 Stat. 44. 
 
 Auction sales. 
 August 2, 1813, oil. 37, 3 Stat. 53. 
 
 Direct tax. 
 August 2, 1813, ch. 39, 3 Stat. 72. 
 
 License tax on retail merchants, liquor dealers, etc. 
 August 2, 1813, ch. 53, 3 Stat. 77. 
 
 Stamp tax on notes, hills, etc. 
 August 2, 1813, ch. 56, 3 Stat. 82. 
 
 Further details as to method of collection. 
 December 10, 1814, ch. 11, 3 Stat. 148. 
 
 Amending stamp tax of 1813. 
 December 15, 1814, ch. 12, 3 Stat. 148. 
 
 New rates on carriages. 
 December 21, 1814, ch. 15, 3 Stat. 152. 
 
 Spirits and licenses. 
 December 23, 1814, ch. 16, 3 Stat. 159. 
 
 Auctions, licenses, etc. 
 January 18, 1815, ch. 22, 3 Stat. 180, ,186. 
 
 Manufactured goods, furniture, etc. 
 February 27, 1815, ch. 61, 3 Stat. 217. 
 
 Gold and silver plate, etc. 
 March 3, 1815, ch. 91, 3 Stat. 230. 
 
 Amending Act of 1815 as to furniture, watches, etc. 
 February 22, 1816, ch. 18, 3 Stat. 254. 
 
 Repealing tax on plate and jewelry. 
 April 9, 1816, ch. 41, 3 Stat. 264. 
 
 Repealing tax on furniture and watches. 
 April 19, 1816, ch. 58, 3 Stat. 291. 
 
 Amending spirits license Act of 1814. 
 December 23, 1817, ch. 1, 3 Stat. 401. 
 
 To abolish internal duties. 
 March 3, 1823, ch. 55, 3 Stat. 779. 
 
 To permit validating by post payment deeds, etc. 
 August 5, 1861, ch. 45, 12 Stat. 292. 
 
 Tariff and direct tax, including income. 
 
GENERAL TABLE OP STATUTES. xyli 
 
 July 1, 1862, ch. 119, 12 Stat. 432. 
 
 General Internal revenue act; provides for department; 
 
 basis of all later legislation on the subject. 
 March 3, 1863, ch. 74, 12 Stat. 713, 737. 
 
 Amends 1862 Act. 
 March 7, 1864, ch. 20, 13 Stat. 14. 
 
 Amends 1862 Act. 
 June 30, 1864, ch. 173, 13 Stat. 223. 
 
 Complete general Act, elaborating Act of 1862. 
 July 4, 1864, 13 Stat. 417. 
 
 Joint resolution; special income. 
 December 22, 1864, 13 Stat. 420. 
 
 Amends general Act. 
 March 3, 1865, ch. 78, 13 Stat. 469. 
 
 Amends last Act. 
 March 10, 1866, ch. 15, 14 Stat. 4. 
 
 Interprets general Act.- 
 July 13, 1866, ch. 184, 14 Stat. 98. 
 
 First general Act to reduce; special taxes substituted for 
 
 licenses. 
 March 2, 1867, ch. 169, 14 Stat. 471. 
 
 Changes and reductions. 
 March 31, 1868, 15 Stat. 58. 
 
 Reductions. 
 July 20, 1868, ch. 186, 15 Stat. 125. 
 
 New Act covering spirits, tobacco, etc. 
 July 14, 1870, ch. 255, 16 Stat. 256. 
 
 Repeals certain occupation taxes, certain stamp taxes, etc. 
 March 3, 1871, 16 Stat. 601. 
 
 Resolution for reduction. 
 June 6, 1872, ch. 315, 17 Stat. 230. 
 
 Reduction of taxes. 
 December 24, 1872, ch. 13, 17 Stat. 401. 
 
 Reduction of department. 
 March 3, 1873, 17 Stat. 621. 
 
 A compilation of Internal Revenue Laws. 
 February 8, 1875, ch. 36, 18 Stat. 310. 
 
 Tax on State bank circulation. 
 March 1, 1879, ch. 125, 20 Stat. 327. 
 
 Numerous amendments of Revised Statutes. 
 
xviii GENERAL TABLE OF STATUTES. 
 
 March 3, 1883, ch. 121, 22 Stat. 488. 
 
 To reduce; and to repeal tax on checks, matches, etc. 
 August 2, 1886, ch. 840, 24 Stat. 209. 
 
 Oleomargarine. 
 October 1, 1890, 26 Stat. 567. 
 
 McKinley bill: opium tax. 
 August 28, 1894, 28 Stat. 509. 
 
 Wilson bill: income tax (unconstitutional): tax on playing 
 
 cards. 
 June 6, 1896, ch. 337, 29 Stat. 253. 
 
 Billed cheese. 
 June 13, 1898, ch. 448, 30 Stat. 448. 
 
 Spanish war tax. 
 April 12, 1900, ch. 191, 31 Stat. 77. 
 
 Foraker Act, Porto Rico. 
 April 30, 1900, ch. 339, 31 Stat. 141. 
 
 Hawaii. 
 May 12, 1900, ch. 393, 31 Stat. 177. 
 
 Redemption spoiled stamps. 
 March 2, 1901, ch. 806, 31 Stat. 938. 
 
 Amending Act of 1898; reduction and repeal. 
 July 25, 1901, 32 Stat. Pt. 2, p. 1983. 
 
 Executive proclamation under Foraker Act of 1900. 
 February 26, 1902. 
 
 Joint resolution: return of imprinted stamps. 
 March 8, 1902, ch. 140, 32 Stat. 54. 
 
 Philippines. 
 April 12, 1902, ch. 500, 32 Stat. 96. 
 
 War Revenue Repeal Act. 
 May 9, 1902, ch. 785, 32 Stat. 193. 
 
 Amends oleomargarine law. 
 June 27, 1902, ch. 1160, 32 Stat. 406. 
 
 Refund and remission of certain taxes: legacy and bill of 
 
 lading. 
 June 30, 1902, 32 Stat. 506. 
 
 Redemption of stamps. 
 July 1, 1902, ch. 1369, 32 Stat. 691. 
 
 Philippines. 
 January 7, 1906, 34 Stat. 217. 
 
 Denatured alcohol. 
 
GENERAL, TABLE OF STATUTES. xix 
 
 June 29, 1906. 34 Stat. 620. 
 
 Porto Rico. 
 February 1, 1909, 35 Stat. 590. 
 
 Refunding taxes on foreign exchange. 
 February 4, 1909, ch. 65, 35 Stat. 594. 
 
 Porto Rico. 
 February 9, 1909, ch. 101. 
 
 Philippines. 
 August 5, 1909, ch. 6, 36 Stat. 118. 
 
 Payne- Aldrich tariff, excepts insular possessions; estab- 
 lishes corporation excise. 
 April 9, 1912, 37 Stat. 81. 
 
 Phosphorous matches. 
 October 3, 1913, ch. 16, § 4, subd. D. 
 
 Porto Rico. 
 There are a few minor acts not here enumerated. 
 
THE INTERNAL REVENUE LAWS IN 
 GENERAL. 
 
 The law as it was when the Act of 1914 was passed. 
 
 It is to be borne in mind that the Act of 1914 
 for increased revenue is but an emergency measure 
 which is super-added to an established system of 
 national internal taxation. To such an extent is 
 this true that the Senate frowned down every at- 
 tempt to avail of this occasion for improving the 
 general legislation on the subject. The chairman in 
 charge illustrated this by saying, ' ' I 'm talking now 
 about the revenue law, not the regular law " — al- 
 though of course law is law and revenue is regular! 
 Users of this specialized manual may well desire 
 some general information as to other more perman- 
 ent portions of the system and as to the principal 
 statutes and their interpretation. 
 
 For obvious reasons the few notes which are ap- 
 pended to the respective statutes enumerated below 
 are only intended to be illustrative. Each of the 
 more important fields has its own technical, and 
 often extended, treatment in other works. Liquors 
 and tobacco, for instance, constitute almost a speci- 
 alty, and the great modern excise laws, corporation 
 and income taxes, can here hardly be touched. The 
 
 [xxi] 
 
xxii INTERNAL REVENUE LAWS IN GENERAL. 
 
 material in this chapter is in effect a slightly anno- 
 tated topical index for the general subject. 
 
 The internal revenue taxes are of several distin- 
 guishable kinds, though not technically so classified. 
 
 1. Special taxes on occupations which are definite 
 in amount, like license fees. 
 
 2. Documentary and proprietary stamp taxes, 
 where the unit rate is definite, and the taxpayer can 
 usually readily determine the total amount. 
 
 3. Taxes on specified things: Liquors, tobacco, 
 opium, playing cards, matches, oleomargarine, filled 
 cheese, mixed flour and bank circulation. Those on 
 liquors and tobacco are large revenue producers, but 
 they are also quasi-police or regulative measures in 
 the guise of taxes. The idea of protecting the com- 
 munity runs with, and occasionally outruns, the 
 thought of revenue. 
 
 4. Excise taxes which are proportioned to the tax- 
 able amount of capital employed, business done or 
 income received. 
 
 The severest penalties and the strictest enforce- 
 ment apply, for the most part, to the regulative stat- 
 utes and the special taxes dealing with liquor and 
 tobacco. Aside from the technical provisions of the 
 laws, it is in the very atmosphere of modern tax 
 enforcement that purely revenue measures should 
 be administered with less severity than police and 
 quasi-police regulations. Where the government 
 only wants money, and the amount is not excessive, 
 the people generaly pay a tax without serious de- 
 fault or deception, and there is little need of crim- 
 
INTERNAL REVENUE LAWS IN GENERAL. xxiii 
 
 inal or penal enforcement. Ordinary occupation and 
 stamp taxes occasion more administrative difficulties 
 than actual litigation or punishment. In the fourth 
 class mentioned above, where the tax is assessed on 
 reported or ascertained data, there is felt to be a 
 hardship similar to the severity of the regulative 
 taxes. The government here encroaches further 
 upon private grounds, by more or less inquisitorial 
 methods in search of frauds, and a sort of resent- 
 ment leads the taxpayer to contest the assessment. 
 A man may often elect whether or not he is to incur 
 any one of the taxes of the first three classes; but 
 he is, in a sense, cornered as to the fourth class, and 
 must submit with good or bad grace. Therefore, as 
 well as because these taxes largely have their initial 
 incidence upon corporations, it is here that the major 
 part of civil litigation arises. 
 
 The organization and administration of the Internal Revenue 
 Office are provided for by Title XXXV and certain other sec- 
 tions of the Revised Statutes, as amended, and by subsequent 
 acts. The easiest way to examine these laws as a whole is to 
 refer to the official compilation made under the direction of the 
 commissioner.! 
 
 The methods of assessment and collection of taxes are covered 
 by §§ 3172-3231, and amendments. 
 
 For applicability of general laws, see post, under § 23. 
 
 Special or license taxes are imposed by § 3244, but it has been 
 largely amended, and several subjects are covered by separate 
 acts. Special taxes, generally, are covered by §§ 3232-3246. The 
 special taxes are on rectifiers, liquor dealers, malt dealers, still 
 
 1. The latest extant Compila- Treas. Dept. Document No. 2601, 
 
 tion of Internal Revenue Laws and can be purchased from the 
 
 is that of 1911, showing the law Public Printer, or through the 
 
 in force March 4, 1911. It is publishers of this book. 
 
xxiv INTERNAL REVENUE IxA.WS IN GENERAL. 
 
 makers, brewers, makers of oleomargarine, adulterated butter,, 
 filled cheese and mixed flour. 
 
 For general treatment and specific application, see post, the 
 several taxes and § 3. 
 
 Distilled spirits, including Imitation wines, etc., are covered 
 by R. S. §§ 3247-3334, with amendments and separate acts. Seef 
 post, § 2. 
 
 Fermented liquors, by R. S. §§ 3335-3354, amendments and Act 
 of June 18, 1890, 26 Stat. 162. See post, § 1. 
 
 Tobacco and snuff are covered by R. S. §§ 3355-3386, amend- 
 ments and separate acts. See post, § 4. 
 
 Cigars are covered by R. S. §§ 3287-3406. 
 
 Opinm, by the Act of Oct. 1, 1890, 26 Stat. 567, amended by 
 March 3, 1897, 29 Stat. 228, and by February 9, 1909, 35 Stat. 614. 
 
 While the penalties are severe, the law is not properly a 
 revenue measure, but a method of suppressive regulation. (1912) 
 Marks v. U. S., 196 Fed. R. 476 (as to what constitutes manu- 
 facture) ; (1912) Shelley v. U. S., 198 Fed. R. 88; (1913) 229 U. 
 S. 239 (as to what is not manufacture) ; (1911) U. S. v. Don Kee, 
 192 Fed. R. 733 (an Insufficient indictment). 
 
 Department regulations of July 1, 1911, cover the matter. 
 
 The same Congress which enacted the present emergency 
 revenue also passed a complete new Act on Opium, imposing 
 registration and a special tax on producers, makers and dis- 
 tributors. The tax is nominal and " statistical " or regulative, 
 but the provisions are elaborate and stringent. Written orders 
 in duplicate are required for every transaction. Penalties run 
 to $2,000 or five years or both. The Act applies also to insular 
 possessions and canal zone, and does not repeal the Act of 
 February 9, 1909. 
 
 Oleomargarine, adulterated, process or reuovated bntter, by 
 the Act of Aug. 2, 1886, 24 Stat. 209; Oct. 1, 1890, 26 Stat. 621, 
 amended by May 9, 1902, 32 Stat. 193. 
 
 The oleomargarine Act (1886, ch. 209, amended 1902, ch. 93) 
 is upheld by (1904) McCray v. U. S., 195 U. S. 27, 49 L. Ed. 78. 
 " The manufacture * * * may be prohibited by a free gov- 
 ernment without a violation of fundamental rights." P. 64; 
 (1910) Vermont v. U. S., 217 U. S. 605, 54 L. Ed. 899; (1909) 
 Moxley v. Hertz, 216 V. S. 344, 54 L. Ed. 510. 
 
 Makers and dealers pay special taxes under R. S. § 3244, as 
 well as a tax on the product. See (1914) Hammond Packing 
 
INTERNAL REVENUE LAWS IN GENERAL. xxv 
 
 •Co. V. Montana, 233 U. S. 331, as to State legislation on the sub- 
 ject (1888) Powell V. Pena, 127 U. S. 678, 32 L. Ed. 253; 
 (1897) Schollenberger v. Penna, 171 U. S. 1, 43 L. Ed. 49; (1897) 
 Collins V. New Hamp., 171 U. S. 30, 43 L. Ed. 60. 
 
 The Commissioner (Report 1913) iSnds the whole law unsatis- 
 factory and urges a complete revision. 
 
 KenoTated and adulterated butter. (1912) U. S. v. 11,150 
 Pounds of Butter, 195 Fed. Rep. 657; (1908) Coopersville Co. v. 
 Lemon, 163 Fed. Rep. 145. 
 
 The commissioner finds the law unsatisfactory and urges a 
 revision and the substitution of the butter fat test for the pres- 
 ent moisture test, which in strict enforcement has done injus- 
 tice to the point of oppressiveness. Report, 1913. 
 
 There are special taxes on makers and dealers (R. S. § 3244), 
 as well as stamp taxes on the product. 
 
 The secretary of agriculture enforces this law, under the 
 Food and Brugs Act of 1906. 
 
 A dealer in adulterated butter is liable whether or not he 
 "knowingly" offended. (1913) Lawrence v. Seyburn, 202 Fed. 
 Rep. 913. 
 
 Filled cheese, by the Act of June 6, 1896, 29 Stat. 253. 
 
 This business has practically ceased since 1910. 
 
 There is a coupon-stamp tax on the product, and both makers 
 and dealers pay special taxes (R. S. § 3244). 
 
 When the product is exported it must first pay the tax; not 
 relieved as in tobacco. (1904) Cornell v. Coyne, 192 U. S. 418. 
 
 A department circular (T. D. 1516) covers the matter. 
 
 Mixed flour, by, the Act of June 13, 1898, 30 Stat. 448, §§ 35-49, 
 amended March 2, 1901, 31 Stat. 494 and by April 12, 1902, 32 
 Stat. 96. 
 
 The makers and packers pay a special tax under R. S. § 3244 
 and the product pays a tax collected by coupon-stamps. 
 
 This tax' is of course not in any true sense a revenue measure. 
 
 Department Regulations No. 25, revised August, 1907, cover 
 the matter. 
 
 The tax on legacies. Act of June 13, 1898, 30 Stat. 464, §§ 29, 30, 
 was repealed April 12, 1902, 32 Stat. 96, with a saving clause; 
 and the Act of June 27, 1902, 32 Stat. 406, provided for refund- 
 ing certain taxes wrongfully collected on contingent interests. 
 
»m INTERNAL REVENUE LAWS IN GENERAL. 
 
 The inheritance or snccesgion tax is retained in the present 
 summary, partly because of its " hang-over " feature. 
 
 Succession tax, §§ 29-31 of the Act of 1898, held constitutional: 
 not a direct tax; not lacking uniformity of reason of exemp- 
 tion; not exercise of power belonging to the States. (1899) 
 High V. Coyne, 93 Fed. Rep. 450; affirmed (1900) 178 U. S. 111,. 
 44 L. Ed. 997; (1900) Knowlton v. Moore, 178 U. S. 41-110, 44 
 L. Ed. 969; elaborate opinion by Justice White. (1904) Vander- 
 bilt V. Eldman, 196 U. S. 480, 49 L. Ed. 563; (1901) Eidman v. 
 Martinez, 184 U. S. 578, 46 L. Ed. 697; (1909) Hertz v. Wood- 
 man, 218 U. S. 205, 54 L. Ed. 1001; (1911) Robertson v. U. S., 
 220 U. S. 616, 55 L. Ed. 611. 
 
 The corporation tax imposed by the Tariff Act of 1909, Act 
 of Aug. 5, 1909, c. 6, 36 Stat. 112, amended by June 17, 1910, 
 is upheld and elaborately considered in the Corporation Tax 
 Cases (1911) Flint v. Stone Tracy Co., 220 U. S. 107-177, 55 L. 
 Ed. 389, distinguishing the Income Tax Cases, (1894) Pollock 
 V. Farmers' Loan, 157 U. S. 429; 158 U. S. 601, 39 L. Ed. 759, 
 1108. 
 
 Some recent cases on the Act are: (1914) Anderson v. 42 
 Broadway, 213 Fed. Rep. 777; (1914) Wilkes-Barre Co. v. Davis, 
 214 Fed. Rep. 511; (1914) Nat. Bk. Commerce v. Allen, 211 Fed. 
 Rep. 743; (1912) McCoach v. Minehill, etc., Co., 228 U. S. 295; 
 (1910) Eliot v. Freeman, 220 U. S. 178, 55 L. Ed. 424; (1912) 
 Pennsylvania Steel v. N. Y. City Ry., 198 Fed. Rep. 774. 
 
 Playing cards. Taxed by the Act of Aug. 28, 1894, 28 Stat. 509, 
 560. The manufacturer must register, for control, but does not 
 pay a special tax. 
 
 Cards such as are used in games like " authors " are exempt; 
 but the tax applies to all substitutes for ordinary cards. T. D^ 
 959, Dec. 13, 1905. (1906) U. S. v. Neustaedter, 149 Fed. Rep. 
 1010. 
 
 Where Thomas, D. J., wrote thus vigorously about the badly 
 framed law, the " intention should have been expressed dis- 
 tinctly, rather than in a form that causes doubt and tends to 
 baffle an appreciation of the meaning. * * * The statute is 
 so ambiguous as to be positively unfair, and it is so obviously 
 misleading as to offend the sense of justice. * * * It is 
 hoped that the attention of Congress may be called to the neces- 
 
INTERNAL REVENUE LAWS IN GENERAL. xxvii 
 
 sity of amending the statute, so that its meaning may be plain." 
 (It is hardly necessary to say that " Congress " does not read 
 the reports of court decisions on such minor subjects.) 
 
 The tax on bank circulation is covered by R. S. 3407-3417. 
 
 The tax on State bank circulation illustrates the oft quoted 
 statement of Marshall, C. J., in (1819) McCulloch v. Maryland, 4 
 Wheaton, 316, 431, that the power to tax involves the power to 
 destroy. 
 
 It was designed to drive such circulation out of existence. 
 S'ee (1884) Head Money Cases, 112 U. S. 580, 596, 28 L. Ed. 798, 
 restating the case (1869) Veazie Bk. v. Fenno, 8 Wall. 533, 549. 
 
 Yet it was seriously, though only incidentally, argued in the 
 debates on this Act that the circulation tax of 1875 should be 
 removed and the States permitted to develop a safe local bank 
 currency. Cong. Rec. 18522. 
 
 Clearing house certificates are not deemed circulating notes. 
 T. D. 1271, Nov. 14, 1907. 
 
 R. S. § 3408 taxes circulation, and § 3583 makes it a criminal 
 offence to issue notes, checks or any obligations under a dollar 
 for use as money. See R. S. § 5214. 
 
 Tax on T?Iiite phosphorous matches. 
 
 The Act of April 9, 1912, c. 75, 37 Stat. 81, imposes a tax (to 
 take effect July 1, 1913) on white phosphorous matches, to be 
 paid by stamps, two cents per hundred. The maker must be 
 registered and give a bond, but pays no special or license tax. 
 
 In 1871 the English stamp office prepared match stamps bear- 
 ing the legend ex luce lucellum (from light a little proiit) , but the 
 classical punster was punished; the wrappers were destroyed. 
 
 Income Tax, corporate and individual. 
 
 This was imposed by the second section of the Tariff Act of 
 1913, Oct. 3, c. 16. All relevant internal revenue laws are made 
 applicable. 
 
 It applies to Porto Rico and the Philippines, but the revenues 
 so collected accrue to the respective general insular govern- 
 ments. 
 
 The American Bar Association has just urged a complete re- 
 vision of the whole law as being loosely drawn and most un- 
 satisfactory. 
 
 The Income tax which was part of the Wilson Tariff Act, 
 August 5, 1894, 28 Stat. 509, §§ 27-37, was held unconstitutional. 
 
xxviii INTERNAL REVENUE LAWS IN GENERAL. 
 
 (1895) Pollock V. Farmers' L. & T. Co., 157 U. S. 429, 39 L. Ed. 
 759; 158 U. S. 601, 39 L. Ed. 1108. 
 
 Hawaii. Act of April 30, 1900, 31 Stat. 141. See post, under 
 § 24. 
 
 Porto Kico. Act of April 12, 1900, 31 Stat. 77; Act of June 29, 
 1906, 34 Stat. 620; Act of Oct. 3, 1913, c. 16, § 4 (Tariff Act). 
 See post, under § 24. 
 
 Philippines. Act of March 8, 1902, 32 Stat. 54; Act of April 
 28, 1904, 33 Stat. 574; Act of Aug. 5, 1909, 36 Stat. 83 (also as to 
 Onam and Tutnila) ; Act of Oct. 3, 1913, ch. 16, § 4 (Tariff Act). 
 See post, under § 24. 
 
 Miscellaneous statutory proTisions. Questions of jurisdiction, 
 suits, evidence, practice, duties and discipline of officers, penal- 
 ties for perjury and bribery, claims, government priority in In- 
 solvent estates, etc., etc., are covered by the Judicial Code, the 
 Criminal Code, scattered sections of the R. S. and special acts. 
 
 Several other acts and R. S. sections are in force, dealing 
 with various subjects, such as post-stamping, § 3422, redemp- 
 tion, § 3426 amended, manufacturing in bonded warehouse, 
 § 3433 amended, withdrawals, drawbacks, assessment of un- 
 stamped articles, § 3437, refunds of taxes on export bills of 
 lading, foreign bills of exchange, etc. 
 
 R. S. §§ 3441-3465, contain certain provisions applicable in 
 common to several objects. See post, passim. 
 
THE 
 
 WAR REVENUE LAW 
 
 , OR THE 
 
 EMERGENCY REVENUE ACT 
 OF 1914 
 
 Approved October 22, 1914. 
 
 AN ACT To Incbeasb the Internal Revenue, and 
 FOR Other Purposes. 
 
 Be it enacted by the Senate and House of Representor 
 tives of the United States of America in Congress as- 
 sembled: 
 
 FERMENTED LIQUORS, BEER, 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, brewed or manufactured 
 and sold, or stored in warehouse, or removed for 
 consumption or sale, within the United States, by 
 
 [1] 
 
2 THE "WAR REVENUE LAW. 
 
 whatever name such, liquors may be called, 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 authorized and defined 
 by law. And section thirty- three hundred and 
 thirty-nine of the Revised Statutes is hereby 
 amended accordingly: Provided, That the addi- 
 tional 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 fur- 
 nished, the stamps heretofore used to denote the 
 payment of the internal-revenue tax on fermented 
 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 receive 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. 
 
 Fermented Llqnors, Beer, Etc. (Increased Tax.) 
 
 Cf. Act of July 1, 1862, 12 Stat. 432; Act of March 3, 1863, 1? 
 Stat. 713, 737; Act of April 1, 1864; Act of July 13, 1866, 14 
 Stat. 98; Act of March 1, 1879, 20 Stat. 327; Act of June 13, 
 1898, 30 Stat. 448; Act of March 2, 1901, 31 Stat. 938; Act of 
 April 12, 1902, 32 Stat. t)4. 
 
THE WAR KEVBNUE LAW. 3 
 
 Fermented liquors are taxed under Revised Statutes, §§ 3335 
 et seq., and brewers pay a special tax under Revised Statutes, 
 § 3244. The present act merely amends § 3339 by increasing the 
 barrel rate. The tax rate has varied at different periods from 
 sixty cents to two dollars. 
 
 The method of collecting the tax without stamps is found in 
 Revised Statutes, §§ 3182 et seq. Receipts are given for cash 
 payments, but never for stamp payments nor in lieu of stamps,, 
 § 3183. 
 
 As the increase in the Act of 1914 is imposed, not as an extra 
 tax, but by express substitution " in lieu of the tax now im-' 
 posed," the department requested Congress to add a proviso to. 
 the last section of the Act, so as to restore the former tax 
 automatically when the emergency tax ceases. See post, § 24. 
 
 Such an increase of an excise tax is constitutional. (1902) 
 Patton V. Brady, 184 U. S. 608, 46 L. Ed. 713. 
 
 The added tax is on beer stored or removed by the brewer, 
 not by the dealer. Op. Atty. 'Gen. XXII, 279; XXIII, 227. T. D. 
 20464, Dec. 28, 1898; 20487, Jan. 3, 1899. 
 
 Beer defined: (1884) Sarlls v. U. S., 152 U. S. 570, 38 L. Ed. 
 556; (1892) In re McDonough, 49 Fed. Rep. 360. See definition 
 of brewer, R. S. § 3244. 
 
 Hop tonic, maltina, hop ale, etc. (1901) Davis v. Daugherty, 
 105 Fed. Rep. 769; T. D. 829, 19154, 19025. 
 
 Root, spruce, ginger and herb beer. T. D. 19383, July 2, 1898; 
 20233, Oct. 22, 1898; T. D. 19445. 
 
 Rice beer. 35 Int. Rev. Rec. 253. 
 
 Speaking of the war which induced this Act, beer as distinct 
 from ale began in England when hops came over from Flanders 
 early in the 16th century. Wellington repealed the beer tax in 
 1830. " The new beer bill has begun its operations. Everybody 
 is drunk. Those who are not singing are sprawling. The sov- 
 ereign people are in a beastly state." Sydney Smith, Life and 
 Correspondence. 
 
 Although there are indications of haste in this entire act, it 
 was stated in Congress that steps had early been taken to have 
 the new stamps printed. The unexpected protraction of the de-- 
 bates may have afforded ample time. 
 
4 THE WAR REVENUE LAW. 
 
 WINES, LIQUEURS, AND CORDIALS. 
 
 Sec. 2. That upon all still wines, domestic and im- 
 ported, when sold or offered for sale or consumption, 
 there shall be levied and collected 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 than one quart, 2 cents; and on 
 still wines in all other containers, not herein speci- 
 ally provided for, the tax shall be at the rate of 8 
 ■cents per gallon. 
 
 That upon all domestic and imported champagne 
 and other sparkling 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 
 other all containers 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, 11/2 cents; more than one-half pint and not 
 more than one pint, 3 cents; more than one pint and 
 
THE WAR REVENUE LAW. 5 
 
 not more than one quart, 6 cents; and on larger oon- 
 tainers a tax at the rate of 24 cents per gallon. 
 
 All of the taxes imposed in the preceding para- 
 graphs of this section shall be paid by stamps to be 
 afSxed 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: Provided, That when such still wines, 
 champagne wines, carborated wines, liqueurs, cor- 
 dials, or similar compounds, taxable under the pro- 
 visions of this section, are sold or delivered by the 
 producer, importer, or dealer in wholesale quantities 
 to other dealers, including rectifiers, manufacturing 
 chemists, and druggists, the dealer receiving and 
 selling, or offering the same for sale or consumption 
 to any person other than a dealer, shall aflSx thereto 
 the stamps hereinbefore prescribed: And provided 
 further, That the stamp tax herein imposed shall 
 not be collected on any still wine used by any recti- 
 fier, manufacturing chemist, or druggist in the man- 
 ufacture of any liqueur, cordial, or compound sub- 
 ject to any internal-revenue tax imposed by this 
 Act. 
 
 The Commissioner of Internal Revenue shall cause 
 to be prepared suitable and special stamps denoting 
 the tax herein imposed, to be affixed and canceled in 
 such manner as he with the approval of the Secre- 
 tary of the Treasury, may prescribe; and in the ab- 
 sence of such stamps from any bottle or container 
 containing wine, liqueur, cordial, or compound tax- 
 able under the provisions of this section, sold or 
 
6 THE WAR REVENUE LAW. 
 
 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. 
 
 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, eigh- 
 teen 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 tax- 
 able 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 forti- 
 fied wines shall, under regulations and suitable 
 bonds, to be prescribec^ by the Commissioner of In- 
 ternal Eevenue, 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 preceding month, which assessment shall be paid 
 w^ithin 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 pay- 
 ment of any stamp tax provided for in this section. 
 
 The Commissioner of Internal Eevenue, 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. 
 
 That sections forty-two, forty-three, forty-five, 
 
THE WAR REVENUE LAW. 7 
 
 forty-six, and forty-nine of the Act of October first, 
 eighteen hundred and ninety, as amended by sec- 
 tion 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: 
 
 " 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 ma- 
 terials and products as the Commissioner of Inter- 
 nal Revenue, with the approval of the Secretary of 
 the Treasury, may prescribe, wine spirits produced 
 by any duly authorized distiller, and the Commis- 
 sioner of Internal Revenue in determining the lia- 
 bility of any distiller of wine spirits to assessment 
 under section thirty-three hundred and nine of the 
 Revised Statutes, is authorized to allow such dis- 
 tiller credit in his computations for the wine spirits 
 withdrawn to be used in fortifying sweet wines 
 under this Act: Provided, That such wine contain- 
 ing 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 sec- 
 tion forty-two of this Act is the product resulting 
 from the distillation of fermented grape juice, to 
 
8 THE WAR REVENUE LAW. 
 
 which water may have been added prior to, during, 
 or after fermentation, for the sole purpose of facili- 
 tating 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 pro- 
 visions of this Act is fermented or partially fer- 
 mented grape juice only, with the usual cellar treat- 
 ment, and shall contain no other substance whatever 
 introduced before, at the time of, or after fermen- 
 tation, except as herein expressly provided: Pro- 
 vided, That the addition of pure boiled or condensed 
 grade must or pure crystallized 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 perfecting sweet wines 
 according to commercial 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 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 
 
THE WAR REVENUB3 LAW. 9 
 
 Treasury, may from time to time prescribe: Pro- 
 vided, 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 ofiScial of the Department of Agriculture 
 thereto duly authorized by the Secretary of Agri- 
 culture; 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 fortification, have an 
 alcoholic strength of less than five per centum of 
 their volume. 
 
 " Sec. 45, That under such regulations and offi- 
 cial 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 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 re- 
 quired 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 
 
10 THE WAR REVENUE LAW. 
 
 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 ap- 
 proval of the Secretary of the Treasury, is author- 
 ized 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 dis- 
 tance prescribed by him from any distillery, rectify- 
 ing house, winery, or other establishment used for 
 producing or storing distilled spirits, or for making 
 or storing wines other than wines which are so forti- 
 fied, and that in the building in which such fortifi- 
 cation of wines is practiced 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 of wines is practiced. 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 re- 
 turns 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 pre- 
 scribed by the Commissioner of Internal Revenue, 
 with the approval of the Secretary of the Treasury; 
 and the Commissioner of Internal Revenue 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 rewarehous- 
 
THE WAR REVENUE LAW. H 
 
 ing 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 pajnnent of tax on the 
 amount of wine spirits used in such fortification, 
 under such regulations, and after making such en- 
 tries, 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 to prevent the use of such wine 
 spirits 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 pre- 
 scribed by the Commissioner of Internal Revenue, 
 with the approval of the Secretary of the Treasury; 
 and all of the provisions of law governing the ex- 
 portation 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 
 
12 THE WAR. REVENUE LAW. 
 
 of an officer of internal revenue, who shall make re- 
 turns 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 pre- 
 scribed by the Commissioner of Internal Revenue,, 
 with the approval of the Secretary of the Treasury. 
 Whenever transportation of such wine is to be ef- 
 fected by land carriage the Commissioner of Internal 
 Revenue, with the approval of the Secretary of the 
 Treasury, shall prescribe such regulations as to seal- 
 ing packages and vehicles 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 intro- 
 duced 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 ac- 
 cordance with regulations of the Commissioner of' 
 Internal Revenue, with the approval of the Secre- 
 tary of the Treasury, wines fortified under the pro- 
 visions of this Act with brandy taxable at 55 cents, 
 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 con- 
 tained in such wine at the time of exportation, which 
 amount of wine spirits shall be ascertained by the- 
 Commissioner of Internal Revenue under regula- 
 tions 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 
 
THE WAR REVENUE LAW. 13 
 
 amount of alcohol in such wine over and above four- 
 teen per centum thereof. 
 
 " Sec. 49. That wine spirits used in fortifying 
 w^ines may be recovered from such wines only on the 
 premises of a duly authorized grape-brandy distiller, 
 and for the purpose of such recovery wine so forti- 
 fied may be received as material on the premises of 
 such a distiller, 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 alcoholic strength therein produced by the 
 fermentation of the grape juice and that obtained 
 from the added distilled wine spirits: Provided, 
 That when application for such special permit for 
 redistillation 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 regula- 
 tions made by the Commissioner of Internal Eev- 
 enue, 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 Com- 
 missioner of Internal Revenue, under regulations 
 approved by the Secretary of the Treasury, and wine 
 ■spirits so recovered may be used in the manner pro- 
 
14 THE WAR REVENUE LAW. 
 
 vided by law for the fortification of other wine:. 
 Provided, That such wine spirits on which abate- 
 ment 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, nineteen 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 Eev- 
 enue is hereby authorized to assign at each winery 
 where wines are to be fortified such number of 
 gangers or storekeeper gangers, in the capacity of 
 gangers, for special duties as may be necessary for 
 the proper supervision of the making and fortifying 
 of such wines, and the compensation of such officers 
 shall not exceed $5 per diem while so assigned, to- 
 gether with their actual and necessary traveling ex- 
 penses, and also a reasonable allowance for their 
 board bills, to be fixed by the Commissioner of Inter- 
 nal Revenue, but not to exceed $2 per diem for said 
 board bills. That bonds hereafter given under the 
 provisions of the aforesaid Act of October first, 
 eighteen hundred 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 
 
THE WAR REVENUE LAW. 15 
 
 other conditions as the Commissioner of Internal 
 Eevenue, with the approval of the Secretary of the 
 Treasury, may by regulation prescribe. 
 
 " Sec. 6. That any person who by any process 
 recovers from wines fortified under the provisions 
 of the aforesaid Act approved October first, eighteen 
 hundred and ninety, and 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 amendments, 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 unlaw- 
 fully recovered therefrom, shall, on conviction, be 
 punished for each such offense by a fine of not less 
 than $200 nor more than $1,000. But the provisions 
 of this section and the provisions of section thirty- 
 two hundred and forty-four of the Eevised Statutes 
 of the United States, as amended, relating to rectifi- 
 cation, 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 im- 
 der 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 
 provision of section thirty-two hundred and forty- 
 
16 THE WAK REVENUE LAW. 
 
 four of the Eevised Statutes of the United States 
 shall remain in full force and effect." 
 
 Wines, Liqueurs and Cordials. 
 
 The Act went into effect as law at midnight, October 22-23, 
 1914. ThlB section became applicable at once, and the Commis- 
 sioner of Internal Revenue sent the following telegram to all 
 collectors : 
 
 "Beginning with to-day tax accrues on all wines sold: 2 
 cents a quart on still wines, 20 cents a quart on champagne, 
 other sparkling and artificially carbonated wines; 6 cents a 
 quart on liquors, cordials and similar compounds, and propor- 
 tionate rates for other quantities. Until stamps are furnished, 
 require dealers who sell to consumers to keep account of sales 
 on and after to-day." 
 
 Bottled wines of all kinds are taxed under Schedule B of the 
 Act of 1898, June 13, ch. 448. This tax was eliminated from 
 Schedule B of the present Act, and the whole matter brought 
 under S 2. And see the Act of June 6, 1872, ! 12. 
 
 Wine spirits (so-called cognac, distilled from fermented grape 
 juice) may be used practically free of tax under limitations, in 
 fortifying pure sweet wine (made of grape juice and sugar). 
 Act of Oct. 1, 1890, 26 Stat. 567, 621, amended by Aug. 28, 1894, 
 28 Stat. 509, and June 7, 1906, 34 Stat. 215. This last Act im- 
 posed a tax of three cents a gallon on brandy used in fortifying 
 sweet wines, expressly " to cover the expenses to the govern- 
 ment" in this connection. 
 
 The provisions of the House bill as to wines were compara- 
 tively simple, but the matter was given much attention in the 
 Senate, whose substitute was finally accepted. Ugly things 
 were said about local and privileged interests, but the " inter- 
 ests " themselves got together and agreed upon the solution 
 which was adopted. The new plan necessitated amendments to 
 the statutes, supra, on the fortification of wines. The changes 
 may be summarized thus: 
 
 Grape brandy, or wine spirits, used for fortifying wines, 55 
 cents a gallon, instead of three cents, assessed monthly. 
 
 Involves amending 26 Stat. 621, sections 42, 43, 45, 46 and 49. 
 
 42. By omitting the limitation to distillers; the reference to 
 
THE WAR REVENUE LAW. 17 
 
 saccharine preservation and the 14 per cent, alcohol limitation, 
 but retaining the forfeiture for excess of 24 per cent. 
 
 43. By omitting the 4 per cent, sugar requirement; allowing 
 use of commercial brandy; increasing 10 per cent, added sugar 
 limit to 11 per cent.; substituting "dextrose" as a better name 
 for anhydrous sugar; and permitting use of water under limita- 
 tions and regulations. Department of Agriculture to inspect. 
 
 45. Permitting wine to be fortified elsewhere than at the vine- 
 yard. 
 
 46. Permitting wine for export to be fortified at the winery, 
 instead of alongside the ship; and allowing a drawback. 
 
 49. Allowing a rebatement of tax on brandy recovered in the 
 process on the premises. 
 
 Amending, also, 34 Stat. 215, sections 3 and 6: 
 
 3. Payment of tax to be secured by bonds. 
 
 6. Extending exemption from special tax of persons using for- 
 tified wines in making tax-paid cordials, etc.; and permitting 
 wines to be blended. 
 
 Imitation wines, not made from native grapes, are taxed ten 
 cents a pint under R. S. § 3328. 
 
 Wine made from native grapes was not an imitation cham- 
 pagne, although carbonic acid gas was injected into it. (1873) 
 U. S. V. One Case of Wine, 6 Ben. 493. 
 
 The selling of wines is dealing In liquors and requires a spe- 
 cial tax under R. S. § 3244. Vintners and druggists are ex- 
 cepted, under limitations, by section 3246. 
 
 A fermented liquor made from oranges, sugar and elder blos- 
 soms is wine. T. D. 19089, 1898. 
 
 50, also, a wine used as " casing fluid for leaf tobacco," if it 
 is potable. T. D. 19333, 1898. 
 
 Creme de menthe formerly could not be made nor sold with- 
 out paying a special tax. T. D. 33, Feby. 3, 1900. But the pres- 
 ent Act exempts (only from special tax) the makers of cordials 
 who used fortified wines. 
 
 A genuine medicinal blackberry cordial did not require a tax, 
 T. D. 57, March 3, 1900. 
 
 Vermouth was not a wine under the Act of 1898. (1907) Tay- 
 lor V. Treat, 153 Fed. Rep. 656; 166 Id. 1021. 
 
 The Congressional debates, and especially the petitions and 
 irrotests submitted, portend a reduction of revenue from what 
 
Ig THE WAK REVEJNUE LAW. 
 
 Sir Mountsteuart Grant-Duff called " the ravages of temperance." 
 (19th Cent., July, 1887.) 
 
 For an interesting sketch of wine duties in England, see Syd- 
 ney Buxton, Finance and Politics, I, 232 et seq. A chief reason 
 why port and sherry are " fit for gentlemen " in England is that 
 the "people were positively punished, fined and starved out of 
 their taste " for other wines by the Methuen Treaty of 1703 and 
 the subsequent taxes which discriminated in favor of Portugal 
 •• our old and faithful ally " when mo*t other countries turned 
 against England. 
 
 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 imdivided profits shall be included. The 
 amount of such annual tax shall in all cases be com- 
 puted on the basis of the capital, surplus, and undi- 
 vided profits for the preceding fiscal year. Every 
 person, firm, or company, and every incorporated or 
 other bank, having a place of business 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, bullion, 
 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 
 
THE WAB RE3VENUE LAW. 19 
 
 business is confined to receiving deposits and loaning 
 or investing the same for the benefit of its depositors, 
 and which does no other business of banking, shall 
 not be subject to this tax. 
 
 Second. Brokers shall pay $30. Every person, 
 firm, or company, whose business it is to negotiate 
 purchases or sales of stocks, bonds, exchange, bul- 
 lion, 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. 
 
 Third. Pawnbrokers shall pay $50. Every person, 
 firm, or company whose business or occupation it is 
 to take or receive, by way of pledge, pawn, or ex- 
 change, 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 ne- 
 gotiate freights and other business for the owners 
 of vessels, or for the shippers or consignors or con- 
 signees of freight carried by vessels, shall be re- 
 garded as a commercial broker under this Act. 
 
 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 
 
20 THE "WAR REVENUE LAW. 
 
 port of entry relating to the importation or exporta- 
 tion of goods, wares, or merchandise, shall be re- 
 garded as a custom-house broker. 
 
 Sixth. Proprietors of theaters, museums, and con- 
 cert halls, where a charge for admission is made, 
 having a seating capacity of not more than two hun- 
 dred and fifty, shall pay $25; having a seating ca- 
 pacity of more than two hundred and fifty and not 
 exceeding five hundred, shall pay $50 ; having a seat- 
 ing capacity exceeding five hundred and not exceed- 
 ing 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 representations, plays, or perform- 
 ances, for admission to which entrance money is re- 
 ceived, not including halls or armories rented or 
 used occasionally for concerts or theatrical repre- 
 sentations, shall be regarded 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 par- 
 ties 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 Act are exhibited shall be regarded as a cir- 
 cus : 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 
 
THE WAR REVENUE LAW. 21 
 
 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 : Provided, That a special tax 
 paid in one State, Territory, or the District of Co- 
 lumbia 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 exhibi- 
 tions 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 asso- 
 ciations. 
 
 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 billiard room, re- 
 spectively. 
 
 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 merchandise to sell the same on 
 commission shall be regarded as a commission mer- 
 chant : Provided, That any person having paid the 
 special tax as a commercial broker shall not be re- 
 quired to pay the special tax as a commission mer- 
 chant : Provided further, That this provision shall 
 
22 THE WAR RBVE2SrUE LAW. 
 
 not apply to commission houses run upon a coopera- 
 tive plan. 
 
 Special Taxes: (License or Occupation Taxes). 
 
 The section re-enacts, with some changes, the same plan, 
 phraseology and tax rates as were found in the Act of June 13, 
 1898 (30 Stat. 448), which in turn was similarly based on the 
 Act of June 30, 1864 (13 Stat. 223) , and the Act of July 1, 1862 
 (12 Stat. 432). The Acts of 1862 and 1864 required licenses to 
 be taken out and forbade the occupation until the fee was paid. 
 The present Act, as in 1898, here imposes special taxes, and the 
 last paragraph of section 4, infra, prohibits the business under 
 penalty. The civil war license taxes were repealed July 14, 
 1870 (16 Stat. 256). The special taxes of the Spanish war tax 
 -were repealed April 12, 1902 (32 Stat. 96). 
 
 The earlier " license " became a " special tax " in 1866, ch. 184. 
 
 Special taxes are assessed on July lat for the next fiscal year. 
 ■As the Act contemplates retaining its emergency taxes only 
 until the end of 1915, they are to be collected pro rata for the 
 3)eriod when the Act Is in force. 
 
 See section 23, post, as to records required to be kept and 
 Teturns made; and as to penalty of double tax. 
 
 The origin of all our modern licensing acts may be traced to 
 the time of Edward VI (1547-1553) when, " to take away tempta- 
 tions to idleness " and check vagrancy, two sessions justices 
 were empowered to grant licenses to ale and tippling houses. 
 Stat. 5 and 6 Edward VI, c. 25; Reeves' Hist, of English Law 
 (Finlason edition), v. 5, p. 36. 
 
 Samuel Johnson, in his great dictionary, defines excise as, 
 " a hateful tax levied upon commodities, and adjudged not by 
 the common judges of property, but wretches hired by those to 
 whom excise is paid." He has in mind the old " farming out " 
 systems. His illustrative quotations squint at the special taxes 
 of 1914, § 3, and Schedule B. 
 ■" Excise. 
 
 " With hundred rows of teeth the shark exceeds, and on all 
 trades like cassawar she feeds." — Marvel. 
 
 "Ambitious now to take excise of a more fragrant paradise." — 
 Cleaveland. 
 
THE WAR RE:VBNUK LAW. 23 
 
 Ab to the special taxes which are a part of the permanent tax 
 system, or at least were on the statutes when the present 
 emergency act was passed, see ante. 
 
 Section 23, post, extends all existing laws of this sort so far 
 as applicable, to the new special taxes. 
 
 The principal general provisions of the Revised Statutes are: 
 
 Occupation not to be carried on until tax paid (3232) ; busi- 
 ness to be registered (3233) ; partners at the same place pay 
 only a single tax (3234) ; payment of one tax does not cover sev- 
 eral places of business (3235) ; when one person has more than 
 one occupation a tax must be paid for each (3236) ; the tax is 
 due on July first, being annual, but apportioned pro rata for 
 shorter periods (32S7) ; to be paid by stamps (3238) ; the tax 
 stamp to be conspicuously exposed (3239) ; each collector to 
 keep a public list and to certify a copy to any public prosecutor 
 on requisition (3240) ; in case of death or removal after payment, 
 business may be carried on without a new tax (3241) ; payment 
 does not authorize any violation of State law; the special taxes 
 are imposed on brewers, manufacturers of stills, rectifiers, re- 
 tail liquor dealers, wholesale liquor dealers; retail dealers in 
 malt liquors, wholesale dealers in malt liquors; manufacturers 
 of oleomargarine, wholesale dealers in oleomargarine, retail 
 dealers in oleomargarine, manufacturers of process or renovated 
 butter, dealers in adulterated butter, manufacturers of filled 
 cheese, wholesale dealers In filled cheese, retail dealers in filled 
 cheese, manufacturers and packers of mixed flour (3244, as 
 amended). 
 
 Special occupation taxes are constitutional. (1866) License 
 Tax Cases, 5 Wall. 462; (1900) American Sugar Ref. C!o. v. 
 Louisiana, 179 U. S. 89, 45 L. Ed. 102; (1901) W. W. Cargill Co. v. 
 Minnesota, 180 U. S. 452 (grain warehouse); (1905) Cook v. 
 Marshall Co., 196 U. S. 261, 45 L. Ed. 619 (cigarette); (1906) 
 Armour Packing Co. v. Lacy, 200 U. S. 226, 50 L. Ed. 451 (meat 
 packers) ; (1909) Southern Oil Co. v. Texas, 217 U. S. 114, 54 L. 
 Ed. 688 (oil and coal). 
 
 Constitutionality is presumed. (1895) Hooper v. California, 
 155 U. S. 648, 39 L. Ed. 297 (insurance). 
 
 They are to be reasonably and fairly construed. (1900) De 
 Bary v. Souer, 101 Fed. Rep. 425; (1911) Sesnon v. U. S., 182 Fed. 
 
24 THE WAR REJVENUE LAW. 
 
 Rep. 573, 220 U. S. 609. And see notes on construction at ! 23, 
 post. 
 
 It was the province of the States to license, and the earlier 
 use of the word license in the federal legislation led to con- 
 fusion. The designation " special tax," has been used since 
 1866, July 13 (14 Stat. 4). Even under the Acts of 1862 and 
 1864 the license was nothing more than a tax receipt. (1866) 
 License Tax Cases, 5 Wall. 462 (lottery); (1866) Pervear v. 
 Commonwealth, 5 Wall. 475 (liquor); (1865) McGuire v. Com- 
 monwealth, 3 Wall. 387 (liquor) ; (1865) Commonwealth v. Hbl- 
 brook, 10 Allen, 200 (liquor) ; (1867) State v. Delano, 54 Me. 501 
 (liquor) ; (1864) U. S. v. Riley, 5 Blatchf. 204 (liquor) ; (1894) 
 Plumley v. Mass., 155 U. S. 461 (oleomargarine). 
 
 Privilege or occupation taxes have from the earliest times 
 been popular (it would be better, perhaps, to say common) 
 sources of revenue in the Southern States; and the reports of 
 the State courts contain much reasoning which will be found 
 to apply to Federal legislation on the same subjects. (1848) 
 Simmons v. State, 12 Mo. 268 (State tax on lawyers) ; (1847) 
 Carroll v. Mayor, 12 Ala. 173 (city tax on auctioneers) ; (1856) 
 Portland v. O'Neill, 1 Oreg, 218 (city tax on brokers) ; (1857) 
 Gunter v. Leckey, 30 Ala. 591 (State tax on slave traders) ; 
 (1872) St. Louis v. Laughlin, 49 Mo. 559 (on professions) ; 
 (1876) State v. Johnson, 65 Me. 362 (innkeeper); (1879) Ex 
 parte City, re Knox, 64 Ala. 463 (city tax on lawyers). 
 
 The District of Columbia has an elaborate scheme of occu- 
 pation or license taxes, imposed by Congress. Act of July 1, 
 1902, c. 1352 (32 Stat. 622). 
 
 Revised Statutes, section 3243, expressly says that the pay- 
 ment of a Federal special tax shall not authorize any violation 
 of a State law, nor prohibit the imposition of State taxes. See, 
 also. Act of July 1, 1862, c. 119 (12 Stat. 432), § 67; June 30, 
 1864, c. 173 (13 Stat. 223), § 81; and July 13, 1866, c. 184 (14 
 Stat. 98). (1909) Ohio v. Kendle, 8 O. N. P. N. S. 109. 
 
 State and local occupation taxes must not interfere with 
 Interstate commerce. (1914) Browning v. Waycross, U. S. Su- 
 preme Ct, Oct. T., 1913. Nor with foreign commerce. (1914) 
 Sault Ste. Marie v. International Transit Co., U. S. Supreme 
 Ct., Oct. T., 1913. 
 
THE WAR REVENUE LAW. 25 
 
 No State may hinder or burden the Federal goTernment in 
 the lawful exercise of the latter's taxing power. (1910) Fla- 
 herty V. Hanson, 215 U. S. 515, 54 L. Ed. 307, and cases cited, 
 p. 524. 
 
 A State privilege tax on telegraph companies which does not 
 exempt Federal business is unconstitutional. (1912) Williams 
 V. Talladega, 226 U. S. 404, 57 L. Ed. 275, reversing 164 Ala. 633. 
 
 State privilege taxes may be both for revenue and for regula- 
 tion, and are limited only by "due process " and the 14th amend- 
 ment. (1913) Bradley v. Richmond, 227 U. S. 477, 57 L. Ed. 
 603 (private banking) ; (1900) Gundling v. Chicago, 177 U. S. 183. 
 44 L. Ed. 725 (cigarettes) ; (1913) Citizens' Telephone v. Fuller, 
 229 U. S. 322, 57 L. Ed. 1206; (1914) Ohio Tax Cases, 232 U. S. 
 576 (railways). 
 
 A State (Florida) may not impose an arbitrary and burden- 
 some license tax. State and county, on merchants using any form 
 of profit-sharing coupons. (1913) Van Deman & Lewis Co. v. 
 Rast, 214 Fed. Rep. 827. 
 
 City ordinances imposing an unreasonable license system on 
 expressmen, truckmen, hackmen, etc., held unconstitutional. 
 (1914) Adams Express Co. v. New York, 232 U. S. 14. 
 
 As to whether and what contracts may be enforced in de- 
 fault of required license. Benjamin on Sales (Bennett's 7th 
 Ed.), Bk. 3, ch. 3, esp. § 538; Bishop on Contracts, ch. XVIII. 
 
 Many of the cases generally cited turn upon express statu- 
 tory language or express terms of contracts rather than on any 
 principle. (1869) Hall v. Bishop, 3 Daly, 109 (lawyer); (1871) 
 Tedrick v. Hiner, 61 111. 189, 38 L. R. A. 145 (lawyer) ; (1871) 
 Woodward v. Stearns, 10 Abb. Pr. (N. S.) 395 (broker, with ex- 
 press contract) ; (1873) Holt v. Green, 73 Pa. 200 (commercial 
 broker) ; (1871) Lamed v. Andrews, 106 Mass. 435 (merchant) ; 
 (1874) Ruckman v. Bergholz, 37 N. J. L. 437 (real estate agent) ; 
 but cf. (1892) Buckley v. Hamason, 50 Minn. 195, 16 L. R. A. 
 423; (1885) Pollard v. Phoenix Ins. Co., 63 Miss. 244, where 
 failure to have a merchant's license invalidated fire policy on 
 goods; Cf. (1871) Larned v. Andrews, 106 Mass. 435 (a mer- 
 chant under Act of 1864, c. 173, § 79) ; (1869) Aiken v. Blaisdell, 
 41 Vermont, 655 (sale of liquor across State line to evade prohi- 
 bition) ; (1845) Smith v. Mawhood, 14 M. & W. 452 (tobacco). 
 
 An express company was, because of a special method of 
 
26 THE WAR REVENUE LAW 
 
 handling shipments, held to pay a special tax as a liQUOr dealer, 
 though it never owned the beer sold. (1905) Western Exp. C!o. 
 V. U. S., 141 Fed. Rep. 28. 
 
 The ordinary C. O. D. shipments do not make the carrier 
 liable. (1902) U. S. v. Adams Exp., 119 Fed. Rep. 240; though 
 the shipper may be required to have a license for the place of 
 delivery. (1885) 23 Fed. Rep. 134. 
 
 As to what constitutes carrying on a business. (1898) Led- 
 better v. U. S., 170 U. S. 610; (1886) U. S. v. Rennecke, 28 Fed. 
 Rep. 847; (1875) U. S. v. Jackson, 1 Hughes, 531. 
 
 Where special taxes vary with the amount of business done, 
 and a person has paid a higher tax, he may, on establishing 
 his right to a lower classification, recover the excess paid. 
 (1877) U. S. V. Kaufman, 96 U. S. 567. See § 3426, R. S. 
 
 A wife may continue a husband's business without paying a 
 new tax. T. D. 19026, 19411, of 1898. 
 
 A stockholder of a company may not continue busines, as in 
 the case of a partnership, after dissolution. T. D. 45, Feby. 17, 
 1900. 
 
 Under the Act of 1864 one professional license did not suffice 
 for a firm. Collection of Circulars, 1871, pp. 156, 158; Special 
 No. 4, July 30, 1864. 
 
 Where a brewer's tax was paid by a firm, it was not necessary 
 for the partner who continued after dissolution to pay again. 
 (1809) U. S. V. Davis, 37 Fed. Rep. 468; (1878) U. S. v. Glab, 
 S9 U. S. 225; (1867) Spielman v. State, 27 Md. 520. 
 
 A business tax is to be assessed where the business is carried 
 on and not at the residence. (1871) Bates v. Mobile, 46 Ala. 158; 
 (1863) Miner v. Fredonla, 27 N. Y. 155. 
 
 As to sales made away from the place of business, see (1901) 
 U. S. V. Chevalller, 107 Fed. Rep. 434 ; (1909) De Bary v. Dunne, 
 172 Fed. Rep. 940. 
 
 But one liquor license covers any number of bars on the 
 same premises. T. D. 142, June 2, 1900; 169, June 29, 1900. 
 
 By an executive order, dated Oct. 13, 1914, an interesting 
 scheme of occupation or license taxation was established for the 
 Canal Zone. The special license taxes include " dance," " hand 
 organ," " fortune telling device," " cane rack," " doll rack," 
 " merry-go-round," " trick riders," " peddler," etc. 
 
THE WAR REVENUE LAW. 27 
 
 FIBST.— Bankers. 
 
 This paragraph is only slightly altered from the corresponding 
 provision of the Act of 1898, June 13, c. 448, 30 Stat. 448, § 2, 
 Bubd. 1, and Act of 1901, March 2, c. 806, 31 Stat. 938, § 2, subd. 1; 
 repealed by Act of April 12, 1902, c. 500, 32 Stat. 96. See, also. 
 Act of June 30, 1864, c. 173, 13 Stat. 223, § 79, subd. 1, amended 
 by Act of July 13, 1866, c. 184, 14 Stat. 98, § 9; and Act of July 1, 
 1862, c. 119, 12 Stat. 432, § 64, subd. 1. 
 
 The definition of a banker here given is that of R. S. § 3407 (in 
 connection with tax on circula;tion). (1876) Selden v. Equitable 
 Trust Co., 94 U. S. 419; (1875) Warren v. Shook, 91 U. S. 704; 
 (1884) U. S. v. Bank of Montreal, 21 Fed. Rep. 236; (1866) U. S. 
 V. Farmers' L. & T. Co., 25 Fed. Cas. No. 15070. 
 
 Having a place of business, buying and selling stocks for cus- 
 tomers, as a business, and using capital in this business, con- 
 stituted a man a banker. (1890) Richmond v. Blake, 132 U. S. 
 592. 
 
 " Having a place of business vrhere deposits are received and 
 paid out on checks, and vrhere money is loaned upon security, 
 is the substance of the business of a banker." Warren t. Shook, 
 supra. 
 
 For definition of banker, see (1872) Oulton v. Savings Inst, 
 17 Wall. 118. 
 
 Capital under the Act of 1864 did not include surplus earn- 
 ings. (1866) Mechanics, etc.. Bank v. Townsend, 5 Blatchf. 
 315; (1906) Merchants' N. Bk. v. U. S., 42 Ct. Cls. 6. 
 
 The Act of 1872, June 6, c. 315, 17 Stat. 256, interpreted 
 " capital employed." 
 
 " Capital " was held not to include money temporarily bor- 
 rowed by a banker in the ordinary course of his business to meet 
 an emergency, but " the property taken from other investments 
 or uses and set apart for and invested in the special business, 
 and in the increase, proceeds and earnings of which property 
 beyond expenditures incurred in its use, consist the profits 
 made in the business." (1874) Bailey v. Clark, 21 Wall. 284. 
 But, under the Act of 1898, the Commissioner ruled that money 
 borrowed or received on special deposit for use as capital was 
 taxable as capital. T. D. 19783, July 28, 1898; 20154, Oct. 6, 
 1898; 20645, January 27, 1899. 
 
28 THE WAR REVENUE LAW. 
 
 The earlier decisions doubtless led to the insertion In the 
 Act of 1SS8 of the express provision for including surplus with 
 capital. And the tendency of the rulings on the Act of 1898 to 
 exclude certain undivided profits probably caused their express 
 inclusion in the present Act. 
 
 By the Act of 1866 there was a tax on dividends and profits 
 added to surplus. (1873) Dollar Sav. Bk. v. U. S., 19 Wall. 227. 
 
 Surplus means all of assets over liabilities, and therefore In- 
 cludes undivided profits. (1902) Leather Mfrs. Bk. v. Treat, 
 116 Fed. Rep. 774, affirmed (1904) 128 Fed. Rep. 262. 
 
 But, under the Act of 1898, a trust company's accumulated 
 profits, invested in securities, were not part of the capital sur- 
 plus. (1909) Central Trust v. Treat, 171 Fed. Rep. 301; (1911) 
 185 Id. 760; (1909) Farmers' L. & T. v. Treat, 171 Id. 302; (1911) 
 185 Id. 760. 
 
 A company investing Its capital in real estate, bonds and 
 mortgages and dealing in these securities, is not a banker. (1876) 
 Selden v. Equitable Trust, 94 U. S. 419; (1877) Oregon, etc.^ 
 Trust V. Rathbun, 5 Sawyer, 32. 
 
 A fidelity and deposit company, doing a banking business 
 solely with Its deposits, and having its capital and surplus in- 
 vested in realty and securities, was ruled to pay as a bank on 
 the entire amount, under the Act of 1898. T. D. 21421, July 25, 
 1899; cf. Central Trust v. Treat, supra. 
 
 Margins left with stock brokers are not properly check ac- 
 counts. (1874) Clark v. Bailey, 12 Blatchf. 156, affirmed 21 
 Wall. 284; but the question raised as to whether such a broker 
 may not make banker's loans was answered by T. D. 21152, 
 May 12, 1899 ; a broker who keeps no checking accounts and who 
 loans on stocks only in the sense that he temporarily supple- 
 ments customers' margins to carry stocks which he In turn 
 hypothecates for loans, is not doing a banking business, even 
 though he have some capital engaged. 
 
 On default of a proper return for taxation, the collector may 
 summon persons and books for examination under R. S. § 3173. 
 
 An attachment may issue as for a contempt for refusal to an- 
 swer questions. R. S. § 3175; (1870) In re Chadwlck, 1 Lowell, 
 439; (1900) In re Kinney, 102 Fed. Rep. 468; Landram v. U. S., 16 
 Ct. Cls. 74, 85; Lippman's case, 3 Ben. 95. 
 
THE WAR REVENUE LAW. 29 
 
 Examination of books under the Act of 1864, section 14, was 
 not an infringement of a constitutional right. (1868) In re 
 Lippmann, 3 Ben. 95; (1871) In re Strouse, 1 Sawyer, 605. 
 
 Under the Act of 1868, July 20, section 49, an officer might 
 examine bankers' and brokers' books without declaring his pur- 
 pose. (1870) Stanwood v. Green, 2 Abb. U. S. 184. 
 
 Cf. § 23, post, as to records required to be kept, returns made, 
 etc. 
 
 Other illustrative Treasury Decisions, " T. D.," under the 
 Act of 1898: 
 
 (20114) Sept. 28, 1898. The provision for estimating the tax 
 on the basis of the preceding year was ruled to apply only to 
 such banks as had previously been in business, leaving a new 
 bank to pay only the flat tax. An Act of March 2, 1901, amended 
 the paragraph as it stood in 1898 by inserting, " In the case of 
 bankers who were not in business in the preceding fiscal year 
 the tax shall be computed on the capital at the time of com- 
 mencing business." The present Act restores the earlier read- 
 ing by omitting the amendment of 1901. 
 
 (19758) July 25, 1898; (20114) Sept. 28, 1898. A bank begin- 
 ning business during the first month of the law's operation must 
 make return and pay the full year's tax; at any later time dur- 
 ing the year, pro rata for the remainder. 
 
 (20336) Nov. 16, 1898. A new organization by the same per- 
 sons during the year is taxable as a new bank. 
 
 (20786) March 2, 1899. But a mere change of name does not 
 require a new tax to be paid. 
 
 (20419) Dec. 13, 1898. Banks which have separately paid the 
 tax and are subsequently during the year consolidated, must 
 pay a further pro rata tax for the remainder of the year. 
 
 (20723) Feb. 18, 1899. Where a banker is also a broker, the 
 value of a seat on the exchange is not to be included in esti- 
 mating the banking capital. 
 
 A State bank becoming a national bank, with no other change, 
 need not pay a new tax. T. D. 123, May 11, 1900. 
 
 Lending money on goods and chattels is not banking. T. D. 
 20344, June 25, 1898. And see (1879) New Orleans v. Metrop. 
 Loan, 31 La. An. 310. 
 
30 THE WAH REVENUE LAW. 
 
 SECOHTD^Brokers. 
 
 Ct Act. of June 13, 1898, § 2, par. 2; March 2, 1901, 5 2, par. 2, 
 repealed April 12, 1902, § 2; June 30, 1864, S 79, par. 9, amend, 
 by March 3, 1865, and July 13, 1866; Act of July 1, 1862, § 64,^ 
 par. 13. 
 
 This tax was amended out of the Act by the Senate, presum- 
 ably in view of the disturbance of the brokerage business by 
 the long closing of practically all exchanges, a measure adopted 
 to avoid a threatened crash when all Europe became involved 
 in the war and there was danger of " dumping." The House 
 prevailed in conference, and the tax was restored. 
 
 " Ordinarily the term ' broker ' is applied to one acting for 
 others; but the part of the definition which speaks of purchases 
 and sales for himself is equally important as that which speaks 
 of sales and purchases for others. All parts of the definitions 
 are qualified by the words ' whose business it is.' Thus, if 
 A. B. has $10,000 which he desires to invest, and purchases 
 United States stock, or State stock, or any other securities, he 
 does not thereby become a broker. Nor if he owns $10,000 of 
 U. S. stock which he wishes to sell to raise money to pay his 
 debts or because he is not satisfied with six per cent, interest,. 
 Is he thereby made a broker. It is only when making sales 
 and purchases is his business, his trade, his profession, his 
 means of getting his living or of making his fortune, that he- 
 becomes a broker within the meaning of the statute. Nor is 
 it believed that a sale, by one doing a banking business only, 
 of a security received by him for the repayment of a legitimate 
 loan, would make him a broker and subject to the tax. This, 
 would not be deemed an act of brokerage, either under the 
 statute or upon general principles of law. When it is his busi- 
 ness the statute properly holds all such acts, whether in the 
 name of himself ostensibly or in the name of others, as the 
 acts of a broker. The danger and the facility for evasion of 
 the statute furnish excellent reasons for the adoption of this 
 provision." (1875) "Warren v. Shook, 91 U. S. 704, 710. See 
 (1893) Jackson v. Hough, 38 W. Va. 237. 
 
 Persons who buy and sell stocks, etc., on their own account 
 were held brokers. (1874) U. S. v. Cutting, 3 Wall. 441; (1866) 
 Clark V. Gilbert, 5 Blatchf. 330. 
 
THE WAR REVENUE LAW. 31 
 
 Brokers doing a speculative business in mining stocks on their 
 own account are taxable, though they do no commission busi- 
 ness for others. Treas. Dec. (19562) June 23, 1898. 
 
 A note broker is taxable, though operating only for his own 
 account. Treas. Dec. (19692), July 14, 1898; (20549) Jany. 16, 
 1899. 
 
 Bankers who buy and sell government securities for them- 
 selves are not brokers. (1874) U. S. v. Fisk, 3 Wall. 445. 
 
 But bankers acting also for others are brokers. 11 Opin. 
 Atty.-Gen. 482. 
 
 Mere inactive membership in a mining or stock exchange does 
 not involve the tax. T. D. (19567) June 24, 1898. But an inac- 
 tive member who operates through another active member and 
 splits commissions is liable. T. D. (19943) Aug. 24, 1898. 
 
 The mere lending of money for others, where the borrower 
 pays a commission, is not taxable as a brokerage business. 
 T. D. (19894) Aug. 16, 1898. 
 
 Country merchants who occasionally lend money on notes or 
 mortgages are not brokers. T. D. (19940) Aug. 23, 1898. 
 
 A land agent who also, as a material part of his business, 
 buys notes for himself and others, is a taxable broker. T. D. 
 (19757) July 25, 1898; (20028) Sept. 8, 1898. 
 
 The mere Incidental negotiating of mortgage loans by a person 
 having another regular business does not constitute him a 
 broker. T. D. (19872) Aug. 10, 1898; (20262) Oct. 27, 1898; 
 (20544) Jany. 11, 1899. 
 
 But one who, as agent for others, makes a business of nego- 
 tiating the sale of mortgages on commission is a broker. T. D. 
 (20676) Feb. 4, 1899. 
 
 Lending money on mortgage is not taxable as brokerage, but 
 the business of selling mortgage securities so taken requires 
 a broker's tax to be paid. T. D. (21620) Sept. 22, 1899. 
 
 A broker's agent operating in another place than the main 
 office, transmitting orders and remitting money to his prin- 
 cipal, is taxable as a broker. T. D. (19881) Aug. 10, 1898; 
 (19615) July 1, 1898. 
 
 In Circular No. 508, Aug. 8, 1898, T. D. (19843), it was ruled 
 that no tax was required for a broker's branch having a clerk 
 who merely received and transmitted orders. This was intended 
 to apply only to certain small offices such as some of these 
 
32 THE WAB. REVEJNUB LAW. 
 
 maintained in hotel lobbies, and the Commissioner later issued 
 two circulars carefully prescribing the exception and requiring 
 a tax on every branch oflSce having the paraphernalia of a 
 broker's office. T. D. (20374) Nov. 25, 1898; (20604) Jany. 23, 
 1899. 
 
 Cf. Liquor dealer cases where a branch was not a separate 
 concern. (1900) U. S. v. Chevallier, 102 Fed. Rep. 125; 107 
 id. 434; but see, also, liquor case; (1909) De Bary v. Dunne, 172 
 Fed. Rep. 940. 
 
 The mere purchase of county, school and State orders at a 
 discount was first ruled not to constitute a man a broker. T. D. 
 (19885) Aug. 11, 1898. But this was later modified to require 
 a tax of anyone who made a business of buying such warrants 
 and fee bills of witnesses. Appendix to Vol. I of the Compila- 
 tion of Decisions (1899); (21647) Oct. 10, 1899. "It is only 
 when making sales and purchases as his business, his trade, 
 his profession, his means of getting his living or making his 
 fortune, that he becomes a broker within the meaning of the 
 statute." (1875) "Warren v. Shook, 91 U. S. 704. 
 
 The rulings on what constitutes the selling of exchange are 
 not a sure guide, inasmuch as the questions often obviously 
 make an imperfect statement of the facts. General inquiries 
 were answered to the effect that all selling of exchange was 
 taxable, and special efforts were made to enforce the law against 
 express companies and others which competed with banks. 
 T. D. (20593-20594) Jany. 19, 1899; (20717) Feb. 14, 1899; (20785) 
 March 1, 1899; (20790) March 6, 1899; (21075) April 28, 1899; 
 (21709) Oct. 31, 1899. 
 
 But a steamship company which sold its checks to be sent 
 abroad and individuals who occasionally sold their own checks 
 or drafts were not taxed. T. D. (20026) Sept. 8, 1898; (20365) 
 Nov. 21, 1898; (19937) Aug. 23, 1898; (21286) June 20, 1899. 
 The question turns on what is exchange and the extent to 
 which the transactions are a material part of the business. 
 See A. G. O. XXIII, 139, as to express companies' money order 
 business. 
 
 A broker doing business in both stocks and grain or produce 
 must pay a special tax in each capacity. T. D. (19870) Aug. 9, 
 1898; (19998) Sept. 1, 1898; (20167) Oct. 11, 1898; (21607) Sept 
 14, 1899. 
 
THE WAR REVENUE LAW. 33 
 
 Where a broker who has paid the tax goes into a partnership 
 during the year, the new firm must also pay pro rata for the 
 year, without rebate to the man who paid individually. T. D. 
 (20160) Oct. 10, 1898. It was, however, ruled that where one 
 partner continued a liquor business of a dissolved firm, taking 
 in no new partner, he did not require to pay again. T. D. 
 (20346) Nov. 19, 1898. 
 
 A person who buys and deals in life insurance contracts to 
 the extent of making a business of it is dealing in securities 
 and is a broker. T. D. (20235) Oct. 22, 1898. 
 
 A railway agent near a frontier who in the regular course of 
 business exchanges American and foreign money is not a broker. 
 T. D. (21521) Aug. 22, 1899. 
 
 A broker who buys and sells stocks in his own name on 
 margin for another person and at the latter's risk, was a broker 
 under the Act of June 30, 1864, § 99. (1872) Northrup v. Shook, 
 10 Blatchf. 243. 
 
 As to brokerage under a State license law (1885) State v. 
 Duncan, 16 Lea. Tenn. 75; (1893) Jackson v. Hough, supra. 
 
 THIRD.— Pawnbrokers. 
 
 This paragraph may be traced through the Act of July 1, 1862, 
 c. 119, 12 Stat. 432, § 64, subd. 7; Act of June 30, 1864, c. 173, 
 13 Stat. 223, § 79, subd. 10; Act of July 13, 1866, c. 184, 14 Stat. 
 98, § 9; Act of June 13, 1898, o. 448, 30 Stat. 448, § 2, subd. 3; 
 Act of March 2, 1901, c. 806, 31 Stat. 938, § 2, subd. 3, repealed 
 by Act of April 12, 1902, c. 500, 32 Stat. 96, § 2. 
 
 The tax in 1898 was $20. 
 
 A pawnbroker does not evade or avoid the tax by buying 
 articles without issuing tickets but with a verbal agreement to 
 resell. Treas. Decis. Dec. 15, 1898 (20439). 
 
 An occasional transaction in the nature of a loan on a pledge 
 does not constitute pawnbroking. Treas. Decis. Aug. 8, 1898 
 (19843). 
 
 An earlier ruling making pawn tickets liable to stamp tax as 
 warehouse receipts was revoked or modified to apply only to 
 cases where the deposit was clearly as a pledge and not for stor- 
 age. Treas. Decis. Aug. 23, 1899 (21524) . 
 
34 THE WAR REVENUE LAW. 
 
 A state banking license did not cover pawnbroking. (1879) 
 New Orleans v. Metrop. Loan, 31 La. An. 310. 
 
 A pawnbroker's ticket or check under a California statute 
 required a stamp under the Act of 1864. (1870) U. S. v. Smith, 
 1 Saw. 192. 
 
 Lending money on warehouse receipts, without getting pos- 
 session of the goods, is not pawnbroking. T. D. 198, Aug. 16, 
 1900. 
 
 FOURTH.— Commercial Brokers. 
 
 This paragraph is practically as it had I>een in the earlier 
 Acts of 1862 (12 Stat. 713) ; 1864 (13 Stat. 223) ; 1866 (14 Stat 
 471); 1898 (30 Stat. 448); repealed by 1901 (31 Stat. 938). 
 
 This was the first of the 1898 special taxes to be repealed; yet 
 the finance chairman of the Senate, in insisting upon its reim- 
 position here, twice stated, as an argument, that it had remained 
 to the end in the Spanish war emergency taxation. He owned 
 that the field of the broker's activities was " right broad," but 
 estimated there were only about 12,000 taxable brokers of this 
 class. 
 
 A chief difilculty in applying it successfully has always been 
 that many transactions of the class sought to be embraced were 
 not really such as properly could be included among brokers' 
 operations.* The form of language used does not cover mer- 
 chants as such. A broker, properly speaking, only negotiates a 
 sale; he does not actually sell, as a merchant does. 
 
 A commission merchant or factor may operate in his own 
 name and he gets possession of the thing sold. A broker ordi- 
 narily does neither. Where men made sales on commission In 
 their own names, at their own store, had the goods and shipped 
 them to customers, they were commission merchants, not 
 brokers. (1874) Slack v. Tucker, 23 Wall. 321, reversing 1 
 Holmes, 485 (under Act of 1864). 
 
 While the present Act was in the Senate the point above men- 
 tioned was met by adding a new paragraph to the section and 
 taxing commission merchants as such. See § 3, subd. tenth, 
 post, and notes. 
 
 The Act of 1866, July 13, c. 184, 14 Stat. 98, § 9, did not apply 
 
THE WAR REVENUE LAW. 35 
 
 to brokers who made purchases, but to those who made sales. 
 (1872) Stockdale v. Doswell, 16 Wall. 156. 
 
 A State tax on the business of real estate broker is constitu- 
 tional. (1873) Wiltse v. State, 8 Heisk. (Tenn.) 544. 
 
 But real estate brokers, as such, were not deemed covered by 
 the Act of 1898. T. D. 19755, July 23, 1898. 
 
 Under the Act of 1866 a market gardener selling his products 
 from his wagon in the city market was held a produce broker. 
 (1870) U. S. V. Simons, 1 Abb. 470, 7 Phlla. 607. 
 
 Occasional transactions in cattle by a farmer do not make him 
 a broker. (1867) U. S. v. Kenton, 2 Bond, 87. 
 
 Members of a board of trade who are " scalpers or specula- 
 tors," operating solely for themselves, are not commercial 
 brokers. The words, " for themselves or others," in the para- 
 graph regarding stock brokers are not found in this paragraph.. 
 T. D. Oct. 14, 1898 (20198). 
 
 A salesman travelling at his own expense taking and for- 
 warding orders to various makers for cigars sold on sample is 
 a commercial broker. T. D. June 27, 1898 (19575). 
 
 A woman who does " shopping " for others and gets a dis- 
 count for her trouble is not a broker; "installment purchasers," 
 however, who do not ' handle the goods but maintain a credit 
 In stores against which their customers make direct purchases, 
 are taxable. T. D. Aug. 10, 1898 (19884). 
 
 If diamonds on memorandum are obtained on credit and sold 
 by the dealer for his own account, it is not brokerage ; but if the 
 business is really a selling of the consignor's goods on com- 
 mission it is taxable. T. D. Oct. 11, 1898 (20164). 
 
 The mere selling of steamship passage tickets is not such 
 negotiation of business for the owners of vessels as to make the 
 agent a broker. T. D. Feb. 14, 1899 (20717-20718). 
 
 See T. D. 20725, under subd. fifth, infra. 
 
 It was intimated in Congress that many brokers, to encourage 
 business, would also pay the stamp tax on the sale agreements 
 negotiated by them. 
 
 Cf. State cases. (1873) Blackford v. State, 8 Heisk. (Tenn) 
 538 (real estate broker) ; (1872) State v. Field, 49 Mo. 270 
 (broker); (1884) Braun v. Chicago, 110 111. 186 (brokers). 
 
 A State tax of $25 a week on all drummers not having a li- 
 censed business in the taxing district, exceeded the right of the 
 
36 THE WAR REVEJNUE LAW. 
 
 State to license vocations within its own borders. (1886) Rob- 
 bins T. Shelby County, 120 U. S. 489. 
 
 FIFTH.— Custom House Brokers, 
 
 Act of June 30, 1864, c. 173, 13 Stat. 223, § 79, subd. 15; July 
 13, 1866, c. 184, 14 Stat. 98, § 9; June 13, 1898, c. 448, 30 Stat. 448. 
 § 2, subd. 5; March 2, 1901, c. 806, 31 Stat. 938, § 2, subd. 4, 
 repealed by April 12, 1902, c. 500, 32 Stat. 96, § 2. 
 
 Must pay tax in each city where they do business, i. e., every 
 branch office is taxed. R. S. § 3235 ; T. D. 19576, June 27, 1898. 
 
 A bill of sale of a vessel is a " custom house paper," but a law- 
 yer who occasionally draws one is not a broker. T. D. 20321, 
 Nov. 12, 1898. 
 
 T. D. 20033, Sept. 13, 1898, answers several queries on this 
 paragraph. 
 
 " Other business for owners," under subd. fourth, does not 
 permit a commercial broker to arrange entries, etc., without 
 paying a tax as a custom house broker. T. D. 20725, Feby. 20. 
 1899. 
 
 SIXTH.— Proprietors of Theatres, etc. 
 
 Cf. Act of 1862, July 1, c. 119, § 64, subd. 17, 12 Stat. 432; 
 Act of 1864, June 30, c. 173, § 79, subd. 37, 13 Stat. 223; Act of 
 1866, July 13, c. 184, § 9, 14 Stat. 98; Act of 1898, June 13, c. 
 448, § 2, subd. 6, 30 Stat. 448; Act of 1901, March 2, c. 806, S 2, 
 subd. 5, 31 Stat. 938, repealed by Act of 1902, April 12, c. 500, 
 § 2, 32 Stat. 96. 
 
 The House bill provided a flat rate for theatres in cities of a 
 certain population, as was the method in the Act of 1898; but the 
 Senate made a classification according to seating capacity. 
 
 It had been held that the " proprietor " of a still was the 
 person who controlled It, i. e., the lessee, not the lessor. (1878) 
 U. S. V. Van Slyke, 8 Blss. 227. " The distiller, owner, or person 
 having possession." R. S. § 3251. And the present Act follows 
 the Act of 1898 in requiring payment by the lessee of a theatre. 
 
 The exception . here (as the second proviso In par. 8) is an 
 attempted expression of the liberal spirit in which such tax 
 
THE WAR REVENUE LAW. 37 
 
 laws have always been enforced as to church, school, lodge, 
 grange, lyceum and all purely educational, social, religious and 
 charitable entertainments under non-money-making manage- 
 ment. 
 
 Many halls pompously called theatres will escape this tax and 
 fall under par. 8; but the larger theatres properly so called 
 which have latterly been given over chiefly, though not ex- 
 clusively, to " movies " and " varieties," will doubtless be left in 
 this class. 
 
 SKYEKTH.— Circuses. 
 JEIGHTH.— Other Exhibitions. 
 
 1862, c. 119, July 1, § 64, subd. 18; 1864, c. 173, June 30, § 79, 
 subd. 38; 1866, c. 184, July 13, § 9; 1898, c. 448, June 13, § 2, 
 subd. 7 and 8; 1901, c. 806, March 2, § 2, subd. 6 and 7; 1902, c. 
 500, April 12, § 2, repeal. 
 
 A circus is pretty well defined in general acceptance of lan- 
 guage; and, in the spirit of the exceptions in paragraphs 6 and 
 8, it is not likely that a " society circus," or tented " horse play," 
 will be taxed. It is best to inquire of the collector or Commis- 
 sioner, but it would appear to be extremely important, in such 
 inquiry, to state the facts adequately. Many rulings in the 
 compilations, even where they are replies to lawyers, indicate 
 that unfavorable decisions were called out by carelessly formu- 
 lated questions. 
 
 Ordinary local ball games were not assessed, T. D. 20228, Oct. 
 19, 1898; but professional ball in its larger forms undoubtedly 
 will be; and general athletic fields. T..D. 20190, Oct. 12, 1898. 
 
 Theatres and halls used as cafes with vaudeville, no entrance 
 fee being charged, were taxed. T. D. 132, May 23, 1900. 
 
 " Cabaret " shows in restaurants and variety shows in beer 
 halls and garden cafes, where they consist in anything else than 
 bad music, will be included. There is little hope that the 
 music alone will attract a tax! 
 
 A citizens' street fair was not assessed. T. D. 251, Nov. 26, 
 1900. 
 
38 THE WAR REVENUE LAW. 
 
 NINTH^BowUng AUejg, etc. 
 
 Cf. 1862, c. 119. 12 Stat. 432; 1864, c. 173, 13 Stat. 223; 1866, 
 c. 184, 14 Stat. 98; 1898, c. 448, 30 Stat. 448; 1901, c. 806, 31 
 Stat. 938; 1902, c. 500, 32 Stat. 96, repeal. 
 
 This obvlouBly is not Intended to apply to legitimate private 
 clubs. 
 
 "Any person who appears to be, or for the time being Is, in the 
 possession and control of a place or building -where a billiard 
 table is kept for public use, is prima facie the proprietor of a 
 blUiard-room and liable to pay this special tax." (1871) U. S. 
 V. Howard, 1 Sawyer, 507. 
 
 A safety lynn table is a pool table. T. D. 173, July 6, 1900. 
 
 A tlvoli table used for pool or billiards requires a tax. T. D. 
 205, Aug. 28, 1900. 
 
 A tax paid for bowling alleys does not coyer pool tables which 
 are substituted for the alleys. T. D. 231, Oct. 12, 1900. 
 
 Tables called Klondike, Stevens, and Manhattan, and peg 
 pool tables are included. T. D. 259, Dec. 21, 1900. 
 
 TENTH,— Commiaslon Merchants. 
 
 This paragraph is new. The House bill (H. R. 18891) re- 
 tained only the former tax on commercial brokers, but the Sen- 
 ate, on the special recommendation of its Finance Committee 
 (Report No. 813) added this new classification to meet the rul- 
 ings and decisions which had tended to exclude a large class of 
 mercantile agents. The after-thought tacking of so important 
 a measure at the end of a schedule out of its proper place, is 
 a characteristic illustration of the hasty and unreasoned man- 
 ner in which much legislation is patched together. 
 
 Under the Act of 1898 there was a good deal of contention as 
 to what constituted the business of a mercantile commercial 
 broker. Numerous rulings were made which disclosed no real 
 principle until December 12, 1898, in T. D'. 20417, the Commis- 
 sioner made a settled ruling that a commercial broker was one 
 who, without being an exclusive agent, made a business of nego- 
 tiating sales or purchases for others on commission without 
 acquiring title or possession of the goods. 
 
 Mill agents who receive and forward orders, making their 
 
THE WAR REVENUE LAW. 39 
 
 own bills and settlements for goods which are shipped direct 
 from the mills to the customers are brokers, unless they are 
 agents exclusively representing certain houses. T. D. Aug. 23, 
 1898 (19938); Aug. 26, 1898 (19966); Sept. 28, 1898 (20117); Oct. 
 11, 1898 (20168); Oct. 12, 1898 (20189); Oct. 25, 1898 (20241). 
 
 Of. the notes on paragraph 4 of this section. Commercial 
 brokers. 
 
 Consignment commission merchants (tobacco, cotton, cattle 
 etc.) and commission auctioneers are not commercial brokers 
 where they get actual possession of the things they sell for the 
 owner. T. D. July 27, 1898 (19766); Oct. 11, 1898 (20164). But 
 negotiating purchases and sales without consignment to the 
 agent who merely negotiates on a commission is a brokerage 
 business. T. D. Jany. 19, 1899 (20592). 
 
 A person who receives goods into his possession and sells and 
 delivers them on commission is, it appears, not to be regarded 
 as a commercial broker. (1874) Slack v. Tucker, 23 Wall. 321, 
 reversing 1 Holmes, 485 (Act of 1864) ; T. D. Nov. 7, 1898 (20295), 
 as to book agent. 
 
 The Roman tax of one per cent, on auction sales, Veotigal 
 {centesima) rerum venalium, in the reign of Augustus, is one of 
 the earliest known excise laws. 
 
 TOBACCO DEALERS AND MANUFACTURERS. 
 
 Sec. 4. That on and after November first, nineteen 
 hundred and fourteen, special taxes on tobacco deal- 
 ers and manufacturers shall be and hereby are im- 
 posed 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 thousand and do not 
 exceed one hundred thousand pounds shall pay $12, 
 
40 THE WAR REVENUE LAW. 
 
 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 whose business it is to sell, or offer 
 for sale, manufactured tobacco, 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 ex- 
 ceed one hundred thousand and do not exceed two 
 hundred thousand pounds shall each pay $12. 
 
 Manufacturers of tobacco whose annual sales ex- 
 ceed two hundred thousand and do not exceed four 
 hundred thousand pounds shall each pay $24. 
 
 Manufacturers of tobacco whose annual sales ex- 
 ceed four hundred thousand and do not exceed one 
 million pounds shall each pay $60. 
 
THE WAB REVENUE LAW. 41 
 
 Manufacturers of tobacco whose annual sales ex- 
 ceed one million and do not exceed five million 
 pounds shall each pay $300. 
 
 Manufacturers of tobacco whose annual sales ex- 
 ceed five million and do not exceed ten million pounds 
 shall each pay $600. 
 
 Manufacturers of tobacco whose annual sales ex- 
 ceed ten million and do not exceed twenty million 
 pounds shall each pay $1,200. 
 
 Manufacturers of tobacco whose annual sales ex- 
 ceed twenty million pounds shall each pay $2,496. 
 
 Manufacturers of cigars whose annual sales do 
 not exceed one hundred thousand cigars shall each 
 ■pay $3. 
 
 Manufacturers of cigars whose annual sales ex- 
 ceed one hundred thousand and do not exceed two 
 hundred thousand cigars shall each pay $6. 
 
 Manufacturers of cigars whose annual sales ex- 
 ceed two hundred thousand and do not exceed four 
 hundred thousand cigars shall each pay $12. 
 
 Manufacturers of cigars whose annual sales ex- 
 ceed four hundred thousand and do not exceed one 
 million cigars shall each pay $30. 
 
 Manufacturers of cigars whose annual sales ex- 
 ceed one million and do not exceed five million cigars 
 shall each pay $150. 
 
 Manufacturers of cigars whose annual sales ex- 
 ceed five million and do not exceed twenty million 
 cigars shall each pay $600. 
 
 Manufacturers of cigars whose annual sales ex- 
 
42 THE WAK REVENUE LAW. 
 
 ceed twenty million and do not exceed forty million 
 cigars shall each pay $1,200. 
 
 Manufacturers of cigars whose annual sales ex- 
 ceed 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 cigarfettes 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 corporation engaged in the 
 manufacture of cigars, cigarettes (including little 
 cigars), or tobacco shall be considered and deemed 
 a single manufacturer. 
 
THE WAR REVENUE LAW. 43 
 
 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 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 : 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 taxes shall remain in force 
 during said year. 
 
 Tobacco Dealers and Manufacturers. 
 
 Though separated as a new section, this really continues sec- 
 tion 3. In form this section Is but slightly modified from the 
 Act of 1898, c. 448, which revived the special tobacconist taxes 
 that were repealed Oct. 1, 1890, § 26, out of R. S. § 3244; but the 
 extended classification amounts to a great change. The classi- 
 fication of manufacturers according to annual sales was adopted 
 hy the Act of 1898. The 1898 special taxes were repealed by 
 chapter 500 of 1902 April 12. 
 
 A manufacturer of tobacco is defined by the Act of Aug. 28, 
 1894, 28 Stat. 509. It does not include cigar making. 
 
 A dealer In leaf tobacco is defined by R. S. § 3244, as amended 
 by the Act of March 1, 1879, 20 Stat. 327, § 14, and the Act of 
 March 3, 1883, 22 Stat. 488. And see the Act of Aug. 5, 1909, 36 
 Stat. 110. 
 
 The present Act does not Increase, as did the Act of 1898, the 
 tax on tobacco, cigars, cigarettes and snuff, i. e., on the products 
 themselves. The extant laws are found in R. S. §§ 3355-3386a, as 
 amended. The increase in 1898 was held constitutional. (1902) 
 Patton V. Brady, 184 U. S. 608. 
 
 The minimum manufacturer's tax in 1898 was $12. The tax 
 lor the same class is now $6, and a new general class of " deal- 
 
44 THE "WAR REVENUE LAW. 
 
 ers in tobacco " (distinct from " dealers in leaf ") pays $4.80 for 
 sales exceeding $200 a year. It is this flat tax which must 
 be paid by every ordinary small cigar store. Questions may 
 arise, in view of the definition here given of dealer, as to the 
 considerable clas? of persons " whose business " is something 
 else but who make substantial incidental sales of tobacco. As 
 to what constitutes being in business, see § 3, ante. 
 
 The Senate amendment, inserting " for each store, etc.," merely 
 makes more certainly applicable the principle of R. S. § 3235 as 
 interpreted and applied to similar cases. 
 
 The new classification of manufacturers was intended as " a 
 reform in the direction of fair play, toward equalizing the burden 
 of this tax." The new higher classes were inserted to apply 
 to a very small number of large makers; and, large as th© 
 highest rate seems, it was said in the senate that the small 
 maker would still pay about five times as much in proportion. 
 Cong. Rec. p. 18334. 
 
 Revised Statutes, § 3244, provides for the registration of cigar 
 makers, but it is deemed obsolete, as the provision was evi- 
 dently left in the law by oversight when other portions were 
 repealed. A record of factories is kept under § 3389. They 
 paid a special tax before October 1, 1890, and under the Act of 
 June 13, 1898, repealed April 12, 1902. 
 
 Farmers and growers of tobacco are not manufacturers. Act 
 of Aug. 28, 1894, 28 Stat. 509, proviso. All restrictions on them 
 are expressly removed by the Act of Oct. 1, 1890, 26 Stat. 618, 
 as amended by § 69 of the Act of Aug. 28, 1894. A farmer or 
 producer is not a dealer when he sells leaf tobacco to manu- 
 facturers, and unstemmed tobacco in natural leaf is not taxed. 
 Act of Aug. 5, 1909, 36 Sta. 110. 
 
 Employers who, as an accommodation, distributed manufac- 
 tured tobacco to their workmen in a lumber camp, charging 
 them cost prices, were held taxable dealers. (1881) U. S. Vin- 
 son, 8 Fed. Rep. 507. 
 
 The present Act, while it revives the special taxes on dealers 
 and makers, does not, as did the Act of 1898, increase the taxes 
 on the products, although an effort to do so was made in the 
 Senate. Tobacco products have regularly been taxed since 1862, 
 the rates and some administrative details having been changed 
 by various Acts. The present rates are found in R. S. § 3368, 
 amended by 36 Stat. 109, Aug. 5, 1909 (for tobacco and snuff) 
 
THE WAR REVENUE LAW. 45 
 
 and in R. S. § 3394, amended by 36 Stat. 110, same Act (for 
 cigars and cigarettes). 
 At the last minute the Senate inserted the word " transfers." 
 The clause " In arriving, etc.," was an after-thought of Con- 
 gress. It makes it unnecessary for a maker of several sorts 
 of tobacco articles to pay a tax for each. 
 
 PENALTY FOK FAILUKE TO PA¥ SPECIAL TAX. 
 
 The last paragraph of § 4 is one of the lost or dislocated pro- 
 visions of legislation which are sometimes found (either by a 
 complete reading or with the aid of an index), and which illus- 
 trate the haphazard methods of lawmakers. When somebody 
 discovers that something has been " left out," it is arbitrarily 
 " stuck in." Or if, by a suggested insertion or rearrangement, 
 the parts no longer fit, the patch-work is permitted to stand 
 for want of time or inclination to correct the defect. This para- 
 graph, as it is officially printed, seems to be but a part of the 
 provisions for the special taxation of tobacconists; but it un- 
 doubtedly applies, with equal force, to nil the special taxes 
 enumerated in sections 3 and 4. Its prohibition and penalties 
 are the same as in § 4 of the Act of 1898. 
 
 By the Act of 1862 a person who carried on a taxable occupa- 
 tion without a license forfeited three times the tax (§ 59). In 
 1863 (ch. 74, § 24) the penalty for knowingly offending might 
 be two years. In 1864 (ch. 173, § 73) it was prison or fine, or 
 both. In 1867 (ch. 169) it was a fine for all except tobacco and 
 liquor dealers for whom it might be two years. In 1870, July 
 14, ch. 255, the most of the special taxes were repealed, except 
 liquor and tobacco. The Act of 1898 revived many of them, as 
 seen in the preceding notes. 
 
 What is "carrying on the business?" (1886) U. S. v. Ren- 
 necke, 28 Fed. Rep. 847 (liquors) ; (1909) Cuzner v. Calif. Club, 
 155 Cal. 303, 20 L. R. A. U. S. 1095, a bona fide social club not 
 ■business; (1912) Easterbrook v. Hebrew Ladies' Orph. Soc, 85 
 Conn. 289, 41 L. R. A. U. S. 615, an orphans' home not a business; 
 (1909) Atlantic Postal, etc., Co. v. Savannah, 133 Ga. 66, city 
 license on local telegraph; (1908) Ellis v. State, 5 Ga. App. 
 fil5, laborer who sells lemonade on one Sunday does not violate 
 the Sabbath law; (1905) Vanderbilt Univ. v. Cheney, 116 Tenn. 
 259, renting college property where the income Is used for col- 
 lege purposes; (1902) U. S. v. Thomas, 115 Fed. Rep. 207,af- 
 
46 THE WAR REVENUE LAW. 
 
 firmed 192 U. S. 363; (1913) Abrast Realty Co. v. Maxwell, 206. 
 Fed. Rep. 333; (1912) McCoach v. Minehill, etc., Co., 228 U. S- 
 295, 57 L. Ed. 842; (1910) Flint v. Stone Tracy Co., 220 U. S. 
 107, 55 L. Ed. 389; (1910) Zonne v. Minneapolis Synd., 220 U. 
 S. 187, 55 L. Ed. 428; (1914) Wilkes-Barre, etc., Co. v. Davi3» 
 214 Fed. Rep. 511. 
 
 ADHESIVE STAMPS. 
 
 Sec. 5. That on and after the first day of Decem- 
 ber, nineteen hundred 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 in- 
 struments, 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. 
 
 And there shall also be levied, collected, and paid, 
 for and in respect to the preparations, matters, and 
 things mentioned, and described 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 thi s 
 Act. 
 
 Adhesiye Stamps. 
 
 Section 5 is the general paragraph of imposition in broad 
 terms. It is essentially a re-enactment of § 6 of the Act of 
 
THE WAR REVENUE LAW. 47 
 
 1898, June 13, which was amended by March 2, 1901, and re- 
 pealed April 12, 1902. Practically the same clause is found in 
 June 30, 1864, § 151, and July 1, 1862, § 94. 
 As to construction and interpretation, see § 23, post. 
 A State court's decision as to amount of stamps necessary is 
 not reviewable by a federal court. (1866) Campau v. Lewis, 3 
 Wall. 106. 
 
 As to what alterations or new matter on stamped instruments 
 necessitate restamping, where substantial. (1827) Reed v. Deere, 
 7 Barn. & C. 261; (1809) Knill v. Williams, 10 East. 431; (1812) 
 Bathe v. Taylor, 15 East. 412. 
 
 Minor changes and corrections not involving vitality. (1801) 
 Kershaw v. Cox, 3 Bsp. N. P. C. 246 (insertion of " to order " in 
 a bill of exchange), case often followed; (1828) Steele v. Spen- 
 cer, 1 Peters, 552. 
 
 Burden of proof is on claimant under the instrument. (1847) 
 Waring v. Smyth, 2 Barb. Ch. 119; (1839) Herrick v. Malin, 22 
 Wend. 388. 
 
 As to when a letter Is equivalent to a formal instrument. 
 (1866) Crocker v. Foley, 13 Allen, 376; (1868) Boyd v. Hood, 57 
 Pa. 98; (1818) Orford v. Cole, 2 Starkie, 351 (a promise of mar- 
 riage, value not measurable). Cf. (1870) Mercer v. Mercer, 29' 
 Iowa, 557 (conveyance solely for love and affection). 
 
 A joint and several agreement requires only one stamp. (1867) 
 Ballard v. Burnside, 49 Barb. 102. See (1811) Davis v. Williams,. 
 13 East. 232. 
 
 A contract embodied in two papers requires one stamp. (1871) 
 Bowker v. Goodwin, 7 Nev. 135. 
 
 An unstamped instrument may be the subject of forgery. 
 (1899) Thomas v. Texas, 40 Tex. Crim. App. 562, 46 L. R. A. 454 
 (order to pay, under Act of 1898). 
 
 Where the apparent date of an instrument is not the actual 
 time of making, the latter determines whether it must be stamped. 
 (1866) Willey v. Robinson, 13 Allen, 128. 
 
 The Act of 1862 was held not to be retroactive in requiring 
 stamps on papers. (1867) Bayly v. McKnight, 19 La. Ann. 321. 
 Cf. (1866) McLearn v. Skelton, 18 La. Ann. 514. 
 
 As to penalties for omission, etc., see the following sections; 
 and as to the various instruments a,ffected, see the respective 
 separate subdivisions under Schedule A, post. 
 
 Generally speaking, courts will not take notice of the revenue 
 
48 THE WAR REVENUE LAW. 
 
 laws of other countries. (1775) Holman v. Johnson, 1 Cowper, 
 341; (1823) James v. Catherwood, 3 Bowling & R. 190; (1806) 
 Ludlow V. VanRensselaer, 1 J. R. N. Y. 96; Tilsley on Stamp 
 Laws, 301; Collins on Stamp Laws, 440. 
 
 Under the stamp tax Act of 1864, in a litigation as to whether 
 a memorandum check was taxable, the court gave the follow- 
 ing " few simple rules : " 
 
 1. Instruments described in technical language, or in terms 
 especially descriptive of their own character, are classed un- 
 der that head, and are not to be included in the general words 
 of the statute. 
 
 2. 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 in- 
 terpretation, except where scientific or technical terms are used. 
 
 3. The liability of an instrument to a stamp duty, as well as 
 the amount of such duty, is determined by the form and face 
 of the instrument, and cannot be affected by proof of facts out- 
 side of the instrument itself. 
 
 4. If there is a doubt as to the liability of an instrument to 
 taxation, the construction is in favor of the exemption, because, 
 in the language of Pollock, C. B., in Gurr v. Scudds, " a tax can- 
 not be imposed without clear and express words for that pur- 
 pose." (1873) U. S. V. Isham, 17 Wall. 496, 503. 
 
 Absence of proper stamp from tobacco package is prima facie 
 evidence of non-payment of tax, and forfeiture follows: § 3373, 
 R. S. (1882) U. S. V. Keyes, 10 Fed. Rep. 876 (even refuse or 
 worthless scraps and sweepings. So absence from cigars, R. 
 S. § 3398; from fermented liquors, R. S. § 3352; from spirits, 
 R. S. § 3289; (1893) U. S. v. Sykes, 58 Fed. Rep. 1000, 1004. 
 
 The face and form of a paper, rather than the nature of the 
 transaction, will determine taxability under stamp laws. (1899) 
 Granby Mercantile Co. v. Webster, 98 Fed. Rep. 604; (1902) 
 Mchts' Warehouse Co. v. McClain, 112 Fed. Rep. 787. 
 
 The unexpected prolongation of the debates on the measure 
 required the operation of this section to be put forward from 
 November 1st, as planned, to December 1st. Any shorter grace 
 would have reproduced the Civil War troubles, when enabling 
 Acts had to be passed because stamps were not obtainable. 
 
THE WAK REVENUE LAW. 49 
 
 PENALTY FOR OMISSION TO STAMP. 
 
 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 there- 
 on, or without having thereupon an adhesive stamp 
 to denote said tax, such person or persons shall be 
 deemed guilty of a misdemeanor, and upon convic- 
 tion thereof shall pay a fine of not more than $100, 
 at the discretion of the court. 
 
 Penalty for Omission of Stamp. 
 
 These sections require the stamp to be affixed, but at no place 
 (unless by Indirect implication as in the proviso of § 12) is any 
 particular person required to affix it. It was held immaterial. 
 (1868) Adams v. Dale, 29 Ind. 273. Cf. (1867) Myers v. Smith, 
 48 Barb. 614; (1865) Teagarden v. Garver, 24 Ind. 399. As to 
 cancellation, see § 8. 
 
 Section 6, though clearly taken over from the Act of June 13, 
 1898 (and in turn from July 1, 1862, R. S. § 3422), was radically 
 changed by the striking of the former provision making such 
 unstamped instruments incompetent as evidence. Earlier Acts 
 imposed forfeitures and penalties in addition to inadmissibility. 
 The Act of 1898 substituted the misdemeanor penalty with in- 
 admissibility (both in the corresponding § 7 and in two others 
 §^§ 13 and 14 which also, as §§ 11 and 12, post, have been changed 
 in this respect). 
 
 See notes under §§ 11, 12, post, for the reported litigation on the 
 effect on the instrument, the extent and nature of which doubt- 
 less induced the present amendment of § 6 and also of the old 
 § 13 (now § 11), § 14 (now i 12). Congress may have been in- 
 fluenced also by the undesirability of possibly totally invalidating 
 a large number of Instruments by so stringent a provision in an 
 Act intended to be in operation only about one year. The pos- 
 
50 THE WAE REVENUE LAW. 
 
 sible incoiiTenience would outweigh the small saving of taxes 
 which alone would be the motive for such severity. 
 
 The Act now has the misdemeanor penalty, in this connection, 
 as follows: 
 
 Section 6, covering all papers; no question of intent; fine up 
 to $100 for omission. 
 
 Section 8, covering all papers; fine up to $500, or prison to 
 six months, or both, for fraudulent use of uncancelled stamp. 
 
 Section 9, covering promissory notes; fin© up to $200 for 
 omission with intent to evade. 
 
 Section 11, covering all papers; fine up to $50, or prison to six 
 months, or both, for registering, issuing, selling or transferring 
 without due stamping and cancellation, with intent to evade. 
 
 The little words " with intent, etc.," are clearly important, and 
 for better reasons than a senator gave for moving an amend- 
 ment to include them. " I see those words are to be found in 
 some of the old acts in regard to stamps in 1864, 1865, 1866, 
 and along there." Cong. Rec. May 17, 1898, p. 5587. 
 
 FORGING AND COUNTERFEITING STAMPS. 
 
 Sec. 7. That if any person shall forge or counter- 
 feit, or cause or procure to be forged or counter- 
 feited, any stamp, die, plate, or other instrument, 
 or any part of any stamp, die, plate, or other instru- 
 ment, which shall have been provided, or may here- 
 after be provided, made, or used in pursuance of 
 this Act, or shall forge, counterfeit, or resemble, or 
 cause or procure to be forged, counterfeited, or re- 
 sembled, the impression, or any part of the impres- 
 sion, of any such stamp, die, plate or other instru- 
 ment, 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 
 paper with any such forged or counterfeited stamp, 
 die, plate, or other instrument, or part of any stamp. 
 
THE WAR REVENUE LAW. 51 
 
 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 cotmterfeited 
 stamp, die, plate, or other instrument, 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, 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 afore- 
 said, 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 instru- 
 ment 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 im- 
 posed 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, parch- 
 ment, 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 have 
 been provided, made, or used in pursuance of law, 
 and which shall have been cut, torn, or removed 
 
52 THE WAR REVENUE LAW. 
 
 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 stamp, 
 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 fur- 
 ther use thereof; or if any person shall knowingly 
 atid without lawful excuse (the proof whereof shall 
 lie on the person accused) have in his possession 
 any washed, restored, or altered stamp which has 
 been removed from any vellum, parchment, paper, 
 instrument, or writing, then, and in every such case, 
 every person so offending, and every person know- 
 ingly and willfully aiding, abetting, or assisting in 
 committing any such offenses as aforesaid shall be 
 seemed guilty of a misdemeanor, and, upon convic- 
 tion 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. 
 
 Forging and Counterfeiting Stamps. 
 
 Compare Act of 1898, June 13, § 8; 1869, April 10, § 2; 1866, 
 July 13, § 9; 1864, June 30, § 165; 1862, July 1, S 98, and R. & 
 
THE WAR REVENUE LAW. 53 
 
 § 3429, as amended by 20 Stat. 327, Act of March 1, 1879. And 
 see Grim. Code, §§ 147, 148, including stamps. 
 
 See notes under § 23, post. (1902) Kaufman v. U. S., 113 Fed. 
 Rep. 919 (selling washed stamps); (1902) u. S. v. Brown, 119 
 Fed. Rep. 482 (same and impersonaiion of revenue oflScer) . 
 
 CANCELLATION, 
 
 Sec. 8. That in any and all cases where an ad- 
 hesive stamp shall be used for denoting any tax im- 
 posed by this Act, except as hereinafter 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 adhesive- 
 stamp to denote any tax imposed by this Act with- 
 out 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 discretion 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. 
 
54 THK WAK REVENUK JLAVV. 
 
 l^aucellaiJun. 
 
 See Act of 1898, June 13, § 9; 1864, June 3, § 156; 1862, July 
 1, § 99. Tlie methods of cancelling the various other internal 
 revenue stamps are provided in the respective appropriate R. S. 
 sections. 
 
 While it is a matter of indifterence who attaches a stamp, yet 
 if the law is to be effective the person attaching it or issuing the 
 paper must be held to do the cancelling. In numerous instances 
 it is more convenient and doubtless safe for the latter person 
 to authorize the first recipient of the paper to cancel the stamp. 
 For instance, it has been customary for telegraph and other com- 
 i»anies and certain institutions to assume that the handing in of 
 samped papers gave authority to cancel the stamps. The pen- 
 alty is for fraud. (1867) Myers v. Smith, 48 Barb. 614; (1868) 
 >Cedar Rapids R. R. Co. v. Stewart, 25 Iowa, 115. 
 
 Cancellation should be such as to prevent re-use and a de- 
 facement was held enough. (1870) Taylor v. Duncan, 33 Tex. 
 440. The sufficiency of the cancellation Is a question of fact. 
 (1870) Rees v. Jackson, 64 Pa. 486; (1869) U. S. v. Brown, 
 Deady, 566. Of. (1873) Foster v. Holley's Admin., 49 Ala. 593, 
 where the court declined to believe that Congress intended to 
 take away the right of contract from a person who happened 
 to be uneducated or otherwise incapable of following the Act 
 precisely. 
 
 Failure to cancel would not invalidate a stamped note. (1867) 
 Ballard v. Burnside, 49 Barb. 102; (1870) Union, etc., Ass'n v. 
 Neill, 31 Iowa 95; (1881) Dowell v. Applegate, 7 Fed. Rep. 881; 
 (1865) Desmond v. Norrls, 10 Allen, 250. 
 
 Even under the stricter earlier. laws, a failure to cancel did 
 not exclude from evidence. (1872) Browne v. Bennett, 24 La. 
 Ann. 618; (1872) Doffin v. Guyer, 39 Ind. 215; (1870) Patterson 
 V, Glle, 1 Col. T. 200; (1868) Adams v. Dale, 29 Ind. 273. 
 
 Under § 22, post, the commissioner has power to prescribe 
 methods of cancellation, either substituted or additional. Under 
 this power in former Acts, stamps were Imprinted, as on checks, 
 so that the ordinary writing would cancel. This is analogous 
 to the placing of adhesive stamps on packages so that the open- 
 ing of the package destroys the stamp. The department will 
 send its latest circular on this subject to anyone who requests it. 
 
THK WAR REVENUE LAW. 55 
 
 OMITTING STAMP FROM PROMISSORY NOTE. 
 
 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 thereupon an adhesive stamp 
 for denoting the tax hereby charged thereon, he, 
 she, or they shall be deemed guilty of a misde- 
 meanor, and upon conviction thereof shall be pun- 
 ished by a fine not exceeding $200, at the discretion 
 of the court. 
 
 Omitting Stamp from Promissory Note. 
 
 Compare Act of 1898, June 13, ch. 448, § 10; R. S. 1878, § 3422; 
 1866, July 13, ch. 184; 1864, June 30, ch. 173, § 158; 1862, July 
 1, § 100. 
 
 The older laws Imposed a forfeiture penalty and made the in- 
 strument invalid. They included all negotiable instruments. 
 Later, the invalidation was dropped and the omission with de- 
 sign became a misdemeanor. Cf. § 6 and notes. 
 
 Section 9 now applies only to notes, and many of the old cases 
 on stamping notes are inapplicable because of the statutory 
 changes above mentioned. 
 
 The Act of 1898 even covered foreign bills of exchange by a 
 special section (§ 11), inserted at this point, with penalty up to 
 $100. Repealed April 12, 1902. 
 
 An unintentional omission of a stamp from a note might be 
 corrected by an authorized attorney holding it, there being no 
 intent to evade. (1870) Vaughan v. O'Brien, 39 How. Pr. 515; 
 (1867) Blunt v. Bates, 40 Ala. 470. 
 
 A subsequent holder in good faith for value is not affected by 
 an original failure to stamp a note. (1871) Sherry v. Horr, 32 
 Iowa, 184. 
 
56 THE WAK REVENUE LAW. 
 
 An omitted stamp might be afiBxed in open court. (1865) Gar- 
 land V. Lane, 46 N. H. 245; (1872) Waterbury v. McMillan, 46 
 Miss. 635. 
 
 So also in England, where decrees in chancery have been kept 
 back to afford time. (1822) Chervet v. Jones, 6 Mad. 267; (1834) 
 Owen V. Thomas, 3 Mylne & Keen, 353; (1834) Beckwith v. Ben- 
 ner, 6 Carrington & P. 681. 
 
 Even under strict statute, an unstamped note might be used 
 collaterally, as to show by its very appearance that a drunken 
 man must have written it, the defense being fraud. (1814) Greg- 
 ory V. Eraser, 3 Camp. 454; (1838) Coppock v. Bower, 4 M. & 
 W. 36. But see, under a later rule (1891) Ashling v. Boon, 1 
 Ch. 668. 
 
 Unstamped checks might be offered in evidence collaterally, 
 where the object was not to make out a case or a defense. 
 (1903) Bryan v. First Nat. Bk., 205 Pa. St. 7. 
 
 A stamp omitted ignorantly might be affixed later when the 
 necessity was discovered. (1866) Tobey v. Chipman, 13 Allen, 
 123; (1867) Tripp v. Bishop, 56 Pa..424; (1868) Green v. Lowry, 
 38 Ga. 548. 
 
 As to the maker's Inability to supply a stamp after the death 
 of the payee, see (1868) Weyman v. Torreyson, 4 Nev. 124. But 
 see (a case of a deed) (1870) Mercer v. Mercer, 29 Iowa, 557. 
 
 The stamp was no part of the note to which it was obliged to 
 be affixed, and need not appear on an appeal record. (1871) 
 Cabbott V. Radford, 17 Minn. 320; (1871) Prather v. Tulauf, 38 
 Ind. 155; (1867) Hallock v. Jaudin, 34 Cal. 167; (1866) Trull 
 V. Moulton, 12 Allen, 396. 
 
 DISTRIBUTION OF STAMPS. 
 
 Sec. 10. That the collectors of the several districts 
 are hereby authorized and required to furnish to 
 any assistant treasurer of the United States or desi,ar- 
 nated depositary thereof, or any postmaster located 
 in their collection districts, respectively, a suitable 
 quantity of adhesive stamps, without prepayment 
 therefor, and may in advance require of any desig- 
 
THE WAR REVENUE LAW. 57 
 
 nated 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 al- 
 lowed by law or under the regulations of the Com- 
 missioner of Internal Revenue, who is hereby au- 
 thorized to make such other regulations, not incon- 
 sistent 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. 
 
 DJstrJbntion of Stamps. 
 
 Cf. Act of June 13, 1898, ch. 448, § 12, repealed by April 12, 
 1902, § 7; Act of June 30, 1864, § 170; July 1, 1862, § 102. 
 
 These are administrative provisions which do not concern the 
 tax payer except so far as the department has power to provide 
 for sales of stamps without prepayment on bonded security un- 
 der regulations to be adopted. See (1880) U. S. v. Goldback, 
 102 U. S. 623. As to stamp collector, see T. D. 93, April 10, 1900. 
 
58 THE WAK REVENUE I^AW. 
 
 PENALTY FOR ISSUING, ETC., WITHOUT 
 STAMP; POST-STAMPING. 
 
 Sec. 11. That any person or persons who shall 
 register, issue, sell, or transfer, or who shall cause 
 to be issued, registered, sold, or transferred, any 
 instrument, document, or paper of any kind or de- 
 scription 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 man- 
 ner required by law, with intent to evade the pro- 
 visions of this Act, shall be deemed guilty of a 
 misdemeanor, and upon conviction thereof shall be 
 punished by a fine not exceeding $50, or by impris- 
 onment not exceeding six months, or both, in the 
 discretion of the court: Provided, That hereafter, in 
 all cases where the party has not affixed to any in- 
 strument the stamp required by law thereon at the 
 time of issuing, selling, or transferring the said 
 bonds, debentures, or certificates of stock or of in- 
 •debtedness, 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 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 ex- 
 ceed the sum of $50, on payment also of interest, 
 at the rate of six per centum, on said tax from the 
 
THE WAR REVENUE LAW. 59 
 
 day on which such stamp ought to have been affixed, 
 affix the proper stamp to such bond, debenture, cer- 
 ticate 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 appear to said collector, upon oath or 
 otherwise, to his satisfaction, that any such instru- 
 ment 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 pay- 
 ment thereof, then and in such case, if such instru- 
 ment, 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 instrument to 
 be duly stamped. And when the original instru- 
 ment, 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, reg- 
 ister, recorder, or other officer having charge of the 
 
60 THE WAR REVENUE LAW. 
 
 original record, 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 corrected 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 
 lawful for him or them, or any party having an in- 
 terest 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 
 uch instrument, or copy thereof, as herein provided, 
 if such record be required by law, shall in any man- 
 ner be affected by such stamping as aforesaid. 
 
 Penalty for Issning, Eegistering, Selling or Transferring With- 
 out Stamps; Provision for Post-stamping. (See notes under 
 § 6, ante, and §§ 12 and 13, post.) 
 
 Cf. Act of July 13, 1866, ch. 184, § 9, and June 13, 1898, ch. 
 448, § 13, amended by March 2, 1901, ch. 806, § 7. 
 
 As this section was enacted in 1898, it was a piece of careless 
 law making, but the serious defect was cured by the amend- 
 ment of 1901. (1911) U. S. V. Chamberlin, 219 U. S. 250, 55 L. 
 Ed. 204. 
 
 The section, as now re-enacted, has again been materially 
 
THE WAR REVENUE LAW. 61 
 
 -altered, and, like the adjacent sections, has lost a principal 
 sting. But again haste and heedlessness are evident. Default 
 of proper stamps and cancellation no longer invalidates the In- 
 strument, but all the old provisions for validating defective pa- 
 pers are carried over into the new law. They will have their 
 •chief uses in correcting such stamp omissions as would prevent 
 instruments from being registered or recorded under federal 
 laws; and in avoiding the penalty which § 6 broadly Imposes 
 without regard to intent. The severer penalties of §§ 8, 9 and 11 
 are upon intentional or fraudulent omissions. 
 
 The first proviso in § 11, retaining the old language, says that 
 due post-stamping shall restore validity for all purposes. And 
 the second proviso even says the corrected Instrument " may be 
 used in all courts, etc." Such a procedure is no longer neces- 
 sary in order to enable a paper to be used in evidence. 
 
 As the law now stands (Act of 1914), it has lost from: 
 
 Section 6 the exclusion from evidence. 
 
 Section 11 the invalidity and non-effect. 
 
 Section 12 the exclusion from evidence. 
 
 Section 13 the exclusion from evidence. 
 
 Whatever discussion there was on the law and decisions was 
 in committee, but the chairman merely flatly stated on the 
 floor that the federal government had no right to make rules 
 of evidence. This is in fine contrast to the action of the House 
 In 1898 (before which time the courts had repeatedly refused to 
 recognize such a power in Congress), when an amendment tried 
 to strengthen " Invalid and of no effect " by adding " utterly 
 void " (which were in some of the earlier Acts) . 
 
 That an instrument was " void and of no effect," was held not 
 to mean that a contract was " invalid." (1868) McAffierty v. Hale, 
 24 Iowa, 355. 
 
 The person to appear before the collector is the one who 
 should have affixed the stamp. (1868) Myers v. Smith, 48 Barb. 
 614; but see (1869) Schermerhorn v. Burgess, 55 Barb. 422. 
 
 The collector shall affix the stamp or cause the paper to be 
 •stamped. See (1871) Mobile R. Co. v. Edwards, 46 Ala. 267; 
 (1871) Corrle v. Billin, 23 La. Ann. 250. Under the Act of 1864, 
 an omitted stamp might be affixed In open court. (1869) Wig- 
 ham V. Pickett, 43 Ala. 140. Cf. (1872) Moore v. Moore, 47 N. T. 
 467, and cases under § 9, ante. 
 
62 THE WAR REVENUE LAW. 
 
 In the case of an unstamped assignment of mortgage, the col- 
 lector later remitted the penalty and stamped the instrument 
 Held, under the Act of 1898, that the unstamped instrument was 
 not void, hut at most excluded from evidence; and that the 
 correction of the defect according to the Act restored all its 
 qualities and relates hack to the time of issue. (1900) Wingert 
 V. Zeigler, 91 Md. 318. 
 
 Formerly, the record of a mortgage which was not properly 
 stamped was inadmissihle against third parties. Even a suhs©- 
 Quent stamping by the collector could not divert intervening in- 
 terests. (1867) McBride v. Doty, 23 Iowa, 122. 
 
 Where a certified copy of a mortgage was offered in evidence, 
 it was presumed that the recorder required a proper stamping 
 on the original. (1872) Grand v. Cox, 24 La. Ann. 462. 
 
 Invalidity under the Act of 1866 resulted only from fraudulent 
 omission. (1869) Green v. Holway, 101 Mass. 243; (1870) Camp- 
 bell V. Wilcox, 10 Wall. 421. Followed as to the Act of 1898 by 
 (1903) Rowe v. Bowman, 183 Mass. 488. 
 
 The original obligation might he enforced, even where an un- 
 stamped writing was not admitted to proof. (1795) Wilson v.^ 
 Kennedy, 1 Esp. 245; (1808) Brown v. Watts, 1 Taunt. 353; (1868) 
 Wilson V. Carey, 40 Vt. 179; (1866) Jacquin v. Warren, 40 111. 
 459; (1868) Weyman v. Torreyson, 4 Nev. 124. 
 
 But the wrongful destruction of an unstamped paper by a 
 person against whom it might he used would not open the way 
 to parol proof. (1819) Ripplner v. Wright, 2 B. & Aid. 479. 
 
 "A stamp upon an oral agreement is an impossibility. The 
 passing words cannot be caught and subjected to a material 
 process. A stamp, indeed, might be purchased and cancelled 
 whenever parties shall make an oral contract. If Congress shall 
 so enact, the work can probably be performed. They have as 
 yet enacted only that agreements in writing and Instruments 
 shall be thus dealt with." (1871) Fish v. Cottenet, 44 N. Y. 538, 
 543; (1869) New Haven & N. Co. v. Quintard, 6 Abb. Pr. N. S. 
 128, 140. 
 
 The law does not compel persons to reduce their agreements 
 to writing. Collins on the Stamp Laws (Eng. 1841) and cases. 
 
 In the many cases under the older Acts, both invalidity and 
 penalty were rriade to turn on intent. And, now that the in- 
 validity feature is removed from all these sections, the question 
 
THE "WAR REVENUE LAW. 63 
 
 of intent to evade the tax will principally have to be considered 
 — even, doubtless, under § 6 (and compare § 17, post), where no 
 reference is made to intent. 
 
 The purpose of all such tax laws is, of course, to get revenue; 
 and the object of all the imposed penalties is to prevent the loss 
 of revenue. It was never in contemplation that minor, essen- 
 tially innocent defaults in so technical a matter should be, as 
 such, heavily penalized. A mere default of stamp is not evidence 
 of intent, though the Act has made it a misdemeanor. Else- 
 where in the Act and in other laws, the absence of stamps is 
 made prima facie proof of nonpayment and ground for forfeiture. 
 
 There are endless cases on the necessity of showing intent. 
 Courts became impatient at being called upon to restate the 
 well-established rule. (1869) Frink v. Thompson, 4 Lansing, 
 489; (1872) Baker v. Baker, 6 Lansing, 509; (1870) Vaughan v. 
 O'Brien, 57 Barb. 491; (1867) Holyoke M. Co. v. Franklin Co., 
 97 Mass. 150; (1870) Morris v. McMorris, 44 Miss. 441; (1869) 
 Whitehill v. Shickle, 43 Mo. 537; (1866) Govern v. Littlefleld, 
 13 Allen, 127; (1869) Weltner v. Riggs, 3 W. Va. 445; (1867) 
 Hallock V. Jaudin, 34 Cal. 167; (1872) Works v. Hershey, 35 
 Iowa, 340; (1873) Emery v. Hobson, 63 Me. 33; (1874) Oxford 
 Iron Co. V. Spradley, 51 Ala. 171; (1867) Hitchcock v. Sawyer, 
 39 Vt. 412; (1872) State v. Hile, 30 Wis. 416; (1867) Harper v. 
 Clark, 17 Ohio St. 190; (1869) New Haven & N. Co. v. Quintard, 
 6 Abb. Pr. N. S. 128, 137, and full discussion in concurring 
 opinion at p. 139. The burden of proof to show intent is on the 
 party objecting. 
 
 " Intent is the essence of the crime." (1873) U. S. v. Buzzo, 
 18 Wall. 125. 
 
 Stamp omission would not invalidate an instrument unless 
 made with intent to defraud the government. (1867) Vorebeck 
 V. Roe, 50 Barb. 302; (1869) Howe v. Carpenter, 53 Barb. 382; 
 see (1867) Coppernoll v. Ketcham, 56 Barb. 111. 
 
 See note on the effect of stamp omission on criminal prosecu- 
 tions in 46 L. R. A. 454. 
 
 An unstamped paper has generally been admitted in criminal 
 cases. (1783) Rex v. Hawkeswood, 1 Leach Cro. Ca. 257. 
 
 A defect in stamping cannot be cured by any agreement be- 
 tween parties. (1834) Owen v. Thomas, 3 Mylne & Keene, 353. 
 The English courts have frowned upon such attempts as com- 
 
64 THE WAR REVENUE LAW. 
 
 binations to defraud the revenue. (1848) Bennison v. Jewison, 
 12 Jur. 485; (1815) Abraham v. Dubois, 4 Campbell, 269. 
 
 The British Acts, while invalidating some instruments, have 
 been liberal regarding papers and records likely to be needed in 
 evidence in court. Griffith's Stamp Digest, appendix III, p. 260; 
 Tilsley on Stamp Laws, pp. 5, 8, 54, 154, 188, 289, citing cases; 
 Edwards on Stamp Act, p. 12; (1834) Rex v. Preston, 3 N. & 
 M. 31, 5 B. & Ad. 1028. 
 
 There has been a gradual tendency to relax the severity of 
 laws making unstamped instruments invalid. The Act of July 
 1, 1862, was mitigated by that of July 14, 1862, and again by 
 Dec. 25, 1862, and by March 3, 1863. In part, doubtless, these 
 enabling Acts were inspired by the actual scarcity of stampa 
 at certain times and places. Under statutory authority the de- 
 partment in 1898 used over-printed "I R " postage stamps. In 
 the present instance it appears that the administration, confident 
 that the Act would pass, started work on the printing of new 
 stamps while the matter was before Congress. 
 
 As to the limit of time for post-stamping. (1871) Pugh v. 
 McCormick, 14 Wall. 361. 
 
 This section in the form in which it stood in the Act of 1898, 
 § 13, In effect superseded R. S. 3422, which was left in the 
 statutes after the repeal of earlier stamp Acts by June 6, 1872, 
 and March 3, 1883. Similarly, the 1898 provisions have been 
 deemed continuing law for the post-stamping of papers under the 
 Act of 1898. 
 
 The twelve months limitation of the second proviso applies 
 only to the remission of penalty. Correction under penalty may 
 be made later. T. D. 21368, July 10, 1899; 21539 of 1889. 
 
 Personal attendance is not required. Papers may be sent by 
 mail, with an affidavit. T. D. 20696 of 1889. 
 
 There is no such provision for remitting penalties under 
 Schedule B. 
 
 NOT TO BE RECORDED UNTIL STAMPED. 
 
 Sec. 12. That hereafter no instrument, paper, or 
 document required by law to be stamped, which 
 has been signed or issued without being duly 
 
THE WAR REVENUE LAW. 65 
 
 stamped, or witli 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. 
 
 BTot to Be Eecorded until Stamped. 
 
 Compare Act of June 13, 1898, ch. 448, § 14; Act of July 13, 
 1866, ch. 184; Act of June 30, 1864, § 163. See notes, ante, under 
 S§ 6, 9, 11 and post, § 13. 
 
 This is one of the sections which have been radically changed to 
 meet the tendency of judicial decisions. The language stricken 
 was " or admitted, or used as evidence in any court." 
 
 It is obvious that Congress might make laws of evidence for 
 federal courts, and require or limit registration in federal offices. 
 The former enactments as to excluding unstamped papers were 
 therefore binding in federal practice. State courts, however, 
 wherever the matter came up seriously, held that Congress might 
 not superimpose rules of evidence or procedure upon State tri- 
 bunals and administrative offices. 
 
 In many cases where the question did not present itself in 
 this aspect, the State courts seemed to acquiesce. (1865) Pies- 
 singer V. Dupuy, 25 Ind. 419; (1872) Chartiers Co. v. McNamara, 
 72 Pa. 278; (1865) Day v. Barker, 36 Mo. 125; (1865) Carpenter 
 T. Johnson, 1 Nev. 331; (1866) Dorris v. Grace, 24 Ark. 326; (1866) 
 Beebe v. Huttori, 47 Barb. 187; (1866) Patterson v. Eames, 54 
 Me. 203; (1866) Tobey v. Chipman, 13 Allen, 123; (1867) Knox 
 T. Hlndepoper, 21 Wis. 527; (1867) Corbin v. Tracy, 34 Conn. 
 
66 THE WAR REVENUE LiAW. 
 
 325; (1867) Cooke v. England, 27 Md. 14; (1870) Logan v. Dils, 
 4 W. Va. 397, and many other cases where documents originally 
 unstamped were post-stamped and there was no fraudulent in- 
 tent 
 
 In (1869) New Haven & N. Co. v. Quintard, 6 Abb. Pr. N. S. 
 128, 143, concurring opinion says: " In the case of (1867) Myers 
 V. Smith, 48 Barb. 614, the court did not notice the very signifi- 
 cant words in the Act ' with intent to evade,' etc., but merely 
 assumed that the contract was invalid because not stamped." 
 
 But when the question came up squarely and was well con- 
 sidered, the cases everywhere held that a federal tax law could 
 not make rules of evidence for State courts, nor interefere with 
 State administrative procedure. (1904) Tomlin v. Woods, 125 
 Iowa, 367; (1903) Bryan v. First Nat. Bk., 205 Pa. 7; (1902) Sulpho 
 Bath Co. V. Allen, 66 Neb. 295; (1902) Pierpont v. Johnson, 104 
 111. App. 27; (1900) Small v. Slocumb, 112 Ga. 279, 53 L. R. A. 
 130; (1900) Cassidy v. St. Germain, 22 R. I. 53; (1899) Thomas 
 V. Texas, 40 Tex. Crim. App. 562, 46 L. R. A. 454; (1899) Knox 
 V. Rossi, 25 Nev. 96, 48 L. R. A. 305 (note) ; (1898) Peo. eai rel. 
 Brew. Co. v. Fromme, 35 App. Div. N. Y. 459; (1872) Moore v. 
 Moore, 47 N. Y. 467; (1870) Barbour v. Gates, 43 N. Y. 40; (1870) 
 Moore v. Quirk, 105 Mass. 49 ; (1869) Green v. Holway, 101 Mass. 
 243; (1867) Latham v. Smith, 45 111. 29; (1869) Clemens v. Con- 
 rad, 19 Mich. 170; (1870) Spooner v. Eifler, 1 Heisk. Tenn. 633; 
 (1870) Wallace v. Craven, 34 Ind. 534; (1871) Davis v. Richard- 
 son, 45 Miss 499; (1906) Amos-Richia Co. v. N. W. Mut. L., 143 
 Mich. 684. 
 
 Under the Act of 1898, § 14, unstamped instruments could not 
 be received in evidence. The amending Act of 1901, c. 806, § 7, 
 continued the tax as to instruments taxable when issued. 
 Neither the Act of 1901 nor the general repealing Act of 1902, 
 c. 500, repealed § 14 of 1898, c. 448, § 14. (1904) Sackett v. Mc- 
 Caffrey, 131 Fed. Rep. 219, as to a notary's certificate on a home- 
 stead declaration, which was held inadmissible. It distinguishes 
 (1870) Bufflngton v. Day, 11 Wall. 113, 20 L. Ed. 122 (tax on the 
 salary of a State judicial ofiicer) , and argues that such a notarial 
 function is not protected by the self-preservation autonomy aci- 
 corded the States. 
 
THE WAR REVENUE LAW. 67 
 
 "UNLAWFUL TO RECORD OR REGISTER UN- 
 LESS STAMPED. 
 
 Sec. 13. That it shall not be lawful to record or 
 register any instrument, paper, or document re- 
 quired 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. 
 
 Unlawftil to Record or Begister Unless Stamped. 
 
 Compare Act of June 13, 1898, c. 448, § 15; Act of July 13, 
 1866, c. 184, p. 141; Act of June 30, 1864, c. 173, § 152. See 
 notes under §§ 6, 11 and 12, ante. 
 
 The record, registry or transfer was rormerly excluded from 
 evidence. Obviously if the inhibition against recording and regis- 
 tration can be enforced by the other, remaining penalties, there 
 would be no record or register to offer in evidence; and there 
 may be situations where record or registry may be, of them- 
 selves, almost as important as their acceptance in evidence. 
 The law was doubtless changed because Congress could not 
 superimpose rules of evidence upon State courts. The prohibi- 
 tion against registering remains in this Act, but it is likely to 
 be refused applicabllty to records and registers outside the ex- 
 clusive federal jurisdiction. Congress has no better right to 
 prescribe rules here than in the matter of evidence. It may be 
 able, as in instances much complained of, to compel corpora- 
 tions to help enforce its tax laws; but it can hardly require 
 administrative officers of a State or local government to pass 
 upon the fact or sufficiency of a compliance with a stamp tax. 
 Cf. the first proviso in § 15, post. 
 
 Section 9 uses the language, " make," etc., " or cause to be 
 made," etc. So § 11, " register," etc., " or cause," etc. §§12 
 and 13 , do not make a similar inclusion. 
 
 "A failure to comply with the War Revenue Law is a matter 
 with which the register has nothing to do. The duty of the 
 register is to record or file in his office those Instruments or pa- 
 pers which, by the laws of the State, are entitled to be recorded 
 or filed. * * * The responsibility of seeing that the proper- 
 
68 THE WAR REVENUE LAW. 
 
 stamp is affixed rests upon the parties to the instrument, and 
 the register is no more required to determine the validity, un- 
 der the U. S. War Revenue Law, of an instrument offered 
 for record than would be to determine whether a deed offered 
 for record contravened some statute of the State or was offered 
 for the purpose of defrauding creditors or for any other reason 
 was invalid and void. To hold that such a duty rested upon 
 the register would be to constitute him a judicial instead of a 
 ministerial officer." (1898) Peo. ex rel. Brewing Co. v. Fromme, 
 35 App. Div. N. Y. 459. 
 
 The earlier Acts made the record, etc., " utterly void." This 
 was changed in 1898 to inadmissibility, which is now dropped. 
 The general prohibition against recording was formerly en- 
 forced in some States. (1867) McBride v. Doty, 23 Iowa, 122. 
 
 Under the severe esucly Act a mortgage insufficiently stamped 
 -was void. (1865) Horoock v. Plato, 30 How. Pr. 120. 
 
 A chattel mortgage, being merely filed and not recorded, was 
 held not taxable. (1867) Vail v. Knapp, 49 Barb. 299. 
 
 All mortgages were taxed by the Act of 1898, but in 1914 
 Congress has made a special effort to avoid the taxation of such 
 instruments. It struck mortgages from Schedule A, post, and 
 see proviso In the paragraph on conveyances in that schedule. 
 
 KIND OF DOCUMENTARY STAMP NOT ES- 
 SENTIAL. 
 
 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 par- 
 ticular kind or description of stamp designated for 
 and denoting the tax charged on any such instru- 
 ment, paper, or document, provided a legal docu- 
 mentary stamp or stamps denoting a tax of equal 
 amount shall have been duly affixed and used 
 thereon. 
 
THE WAR REVENUE LAW. 69 
 
 Kind of Documentary Stamp Not Essential. 
 
 Cf. Act of June 13, 1898, c. 448, § 16; Act of June 30, 1864, c. 
 173, § 153. 
 
 In 1864 proprietary stamps were expressly not to be used. The 
 same distinction is now made by requiring documentary stamps. 
 These latter belong to Schedule A, and the former to Schedule B. 
 
 In view of the changes in the preceding sections, this whole 
 section would seem, at least so far as documents are concerned, 
 a mere vestigium. But in any event it is merely a precaution 
 in recognition of the ordinary person's lack of expert knowl- 
 edge of stamps. It is doubtful if, despite its broad language, 
 a tobacco or oleomargarine stamp would suffice for a broker's 
 note, although something analogous was ruled under an early 
 Act when stamps were scarce. 
 
 FEDERAL, STATE AND LOCAL SECURITIES 
 EXEMPT; ALSO CERTAIN ASSOCIATIONS, 
 ETC. 
 
 Sec. 15. That all bonds, debentures, or certificates 
 of indebtedness issued by the officers of the United 
 States Grovernment, or by the officers of any State, 
 county, town, municipal corporation, or other cor- 
 poration 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 govern- 
 mental, taxing, or municipal capacity: Provided fur- 
 ther, That stock and bonds issued by cooperative 
 building and loan associations, mutual ditch or irri- 
 gating companies, and building and loan associa- 
 tions or companies that make loans only to their 
 
70 THE WAR REVENUE LAW. 
 
 shareholders, shall be exempt from the tax herein 
 provided. 
 
 Federal, State and Local Securities Exempt; Also Certain Co- 
 operative Associations, etc 
 
 Cf. Act of June 13, 1898, c. 448, § 17; July 13, 1866, c. 184; 
 June 30, 1864, c. 173, § 154; R. S. 1878, § 3420. Act of Dec. 23, 
 1862. 
 
 This appears to apply primarily to securities, but Congress 
 tias no power to tax any of the governmental instrumentalities 
 of a State. The proviso is much wider than the original text 
 of the section. " Functions in their governmental, taxing or 
 municipal capacity," would include all legitimate governmental 
 instrumentalities. And the enumeration here of " taxing " along 
 with " governmental " should prevent any narrowing of the sec- 
 tion's meaning to limit it to securities. 
 
 A State tax deed exempt. (1867) Sayles v. Davis, 22 Wis. 225; 
 (1869) Delorme v. Perk, 24 Wis. 201. An order of county com- 
 missioners. (1866) Nave v. King, 27 Ind. 356. 
 
 A sheriff's official board exempt. (1869) Stat© v. Garton, 32 
 Ind. 1. Also sheriff's certificate of appraisal of realty for a 
 judicial sale. (1902) Noble v. Citizens' Bk., 63 Neb. 847. 
 
 Government disbursing checks under an earlier Act were not 
 taxable. Op. Atty.-Gen. XXII, 134. 
 
 The ordinary notarial acknowledgment, as on a declaration of 
 homestead, is not a judicial act and is not excepted. This, how- 
 ever, was in a federal court. (1904) Sackett v. McCaffrey, 131 
 Fed. Rep. 219. See this case as cited, ante, under § 12. 
 
 But a notarial certificate on a deposition need not be stamped. 
 (1866) Prather v. Pritchard, 26 Ind. 65 (under Act of 1864) ; 
 (1900) Stirneman v. Smith, 100 Fed. Rep. 600 (under Act of 
 1898) ; (1902) McNally v. Field, 119 Fed. Rep. 445, the bond of 
 an administrator, which is an indispensable part of the State's 
 judicial system. 
 
 Nor a bond required to be given by an applicant for saloon 
 license. (1900) U. S. v. Owens, 100 Fed. Rep. 70; (1902) Am- 
 brosini v. U. S., 187 U. S. 1. 
 
 Nor a bond required of a notary. (1900) Warwick v. Bettman, 
 102 Fed. Rep. 127, 108 id. 46. 
 
THE WAR REVENUE LAW. 71 
 
 But the exemption does not apply where a State conducts an 
 ordinary business, such as the liquor dispensary system. 
 (1905) South Carolina v. U. S., 199 U. S. 437. 
 
 The whole question of public ownership of utilities may yet 
 come to be entangled with the power of Congress to tax. 
 
 STAMP PROVISIONS MADE APPLICABLE TO 
 SCHEDULE B. 
 
 Sec. 16. That all tlie provisions of this Act relat- 
 ing to dies, stamps, adhesive stamps, and stamp 
 taxes shall extend to and include (except where 
 manifestly inapplicable) all the articles or objects 
 enumerated in Schedule B, subject to stamp taxes, 
 and apply to the provisions in relation thereto. 
 
 Stamp Provisions Made Applicable to Schedule B. 
 
 Cf. Act of June 13, 1898, § 19; June 30, 1864, § 164; July 1, 
 1862, § 106. 
 
 This refers to administrative matters and to counterfeiting, 
 etc.; and especially in earlier Acts, to the provisions for Im- 
 printing stamps, as on check books, etc. It is one of the gen- 
 eral inclusive provisions which are needed for, and necessary 
 for shortening, elaborate Acts and are often retained when the 
 law is simplified. It carries over the provisions of § 23, post 
 (which see), making other laws applicable to all of the present 
 Act. 
 
 PERFUMERY, COSMETICS, ETC. 
 
 Sec. 17. That on and after December first, nine- 
 teen hundred and fourteen, any person, firm, com- 
 pany, 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 
 
72 THE WAR REVENUE LAW. 
 
 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 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. 
 
 Perfumery, Cosmetics, etc. 
 
 Cf. Act of June 13, 1898, § 20; R. S. 1878, §§ 3430, 3436; Act 
 of 1866 (14 Stat. 148); Act of June 30, 1864, § 165; July 1, 1862, 
 § 107. 
 
 The original House bill had no Schedule B. The Senate 
 amended it to include proprietary medicines and articles, much 
 as in 1898. The present compromise was finally adopted. By 
 eliminating drugs, etc., it removes many troublesome questions 
 such as were disputed and even litigated under the Act of 1898. 
 
 The mere omission incurs the penalty. There Is no question 
 of intent. This is analogous to § 6, ante. See notes under § 18, 
 post. 
 
 "Any similar articles " and " or any similar substance or ar- 
 ticle," are phrases virhich virill revive some of the troubles of 
 1898. There is no mention of wrongful intent, and the most 
 willing taxpayer may easily offend through the mere difficulty of 
 identifying and distinguishing the things taxed. Both the trade 
 and the department have had experience under the Act of 1898, 
 and general rulings of the commissioner will doubtless promptly 
 simplify the matter. 
 
 Under the Act of 1866, an indictment would lie for selling a 
 box of sardines without proper stamping. (1869) U. S. v. Abbott, 
 9 Int. Rev. Rec. 186 (1 Circ, Mass.). See under Act of 1864. 
 (1882) U. S. v. Moore, 11 Fed. Rep. 248. Action to recover 
 penalty under Act of 1864 for selling unstamped matches. (1867) 
 U. S. V. Walsh, 1 Abb. U. S. 66. 
 
THE WAR REVENUE LAW. 73 
 
 REMOVAL OF STAMPS; ILLEGAL USE OF 
 STAMPS, ETC. 
 
 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 par- 
 ticulars 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 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 shall be committed, 
 be deemed guilty of a misdemeanor, and upon con- 
 viction 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 for- 
 feited. 
 
 BemoTal of Stamps; Illegal Use of Stamps, etc. 
 
 Cf. Act of June 13, 1898, § 21; June 30, 1864, § 166; July 1, 
 1862, § 108; R. S. § 3431. 
 
 Here, as in Schedule A, a general Imposition of penalty with- 
 out question of intent is followed by others where intent is nec- 
 essary. Cf. notes under § 11, ante. 
 
 In this and the next section, both having " intent to evade," 
 a forfeiture of the articles is added to other penalties. For- 
 feiture Is common in other revenue laws, both customs and ex- 
 tlse. It afiords the quickest way of making the law felt by the 
 
74 THE WAR REVENUE LAW. 
 
 person seeking to evade its operation. Earlier Acts relied, here 
 as in Schedule A, more on penalties. The- new method is to 
 make the offence a misdemeanor. These misdemeanors are: 
 
 Section 17 regardless of intent. 
 
 Section 18 with intent to evade. 
 
 Section 19 to evade the tax. 
 
 Section 20 false or untrue declaration; and this section im- 
 poses a forfeiture for neglect, regardless of intent. 
 
 SALE OR REMOVAL OF UNSTAMPED ARTI- 
 CLES; EXPORTATION. 
 
 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 commodity, manufactured as aforesaid, before 
 the tax thereon shall have been fully paid by afifixing 
 thereon the proper stamp, as in this Act provided, 
 or who shall hide or conceal, or cause to be hidden 
 or concealed, 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 mis- 
 demeanor, 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, together with the forfeiture of any such article 
 or commodity: Provided, That articles upon which 
 stamp taxes are required by this Act may, when in- 
 tended for exportation, be manufactured and sold 
 or removed without having stamps affixed thereto, 
 
THE WAR REVENUE LAW. 75 
 
 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 protect the revenue against fraud as may be from 
 time to time prescribed by the Commissioner of In- 
 ternal Revenue, with the approval of the Secretary 
 of the Treasury. 
 
 Sale or Bemoval .of Unstamped Articles; Exportation Exempt 
 under Bond. 
 
 Cf. Act of June 13, 1898, § 22; June 30, 1864, §§ 167, 168; amend. 
 March 3, 1865; Act of July 1, 1862, § 109; R. S. § 3433. 
 
 This section is similar to R. S. § 3296, as to unlawful removal 
 or concealment of spirits. A person might be convicted under 
 § 18 for detaching a stamp once affixed to an article; then under 
 § 19 for removing or concealing the unstamped article; and then 
 under § 17 for selling the article without paying the tax. The 
 offenses are different and the Fifth Amendment might not save 
 him. See (1890) U. S. v. 3 Stills, 47 Fed. Rep. 495; (1897) 
 Pounds V. U. S., 171 U. S. 35; (1902) Pilcher v. U. S., 113 Fed. 
 Rep. 248. 
 
 Early Acts, e. g., 1864, as some other, portions of more recent 
 internal revenue laws, provided expressly for bonded factories 
 and warehouses for exportatlons. Such matters are now left to 
 department regulations. See under Schedule B, post. 
 
 As to drawbacks on exportatlons (1873) U. S. v. 237 Boxes, 
 6 Ben. 543. And see under Schedule B, post. Cf. notes under 
 §§ 17 and 18, ante. 
 
 MONTHLY DECLARATION OF COMPLIANCE. 
 
 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, sign, 
 
76 THE "WAR REVENUE LAW. 
 
 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, dur- 
 ing 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 manufacturer or maker 
 forfeiting for every refusal or neglect to make such 
 declaration $100; and if any such manufacturer or 
 maker, or his foreman, agent, or superintendent, 
 shall make any false or untrue declaration, such 
 manufacturer or maker, or foreman, agent, or su- 
 perintendent making the same shall be deemed 
 guilty of a misdemeanor, and upon conviction 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. 
 
 Monthly Declaration of Compliance. 
 
 Cf. Act of June 13, 1898, § 23; July 1, 1862, § 110. 
 
 This applies to manufacturers, not to dealers. What is re- 
 quired is not a statement of business done, nor a report of manu- 
 facturers or of transactions, during the period. It is a device, 
 such as is used elsewhere in revenue legislation (and in cross- 
 examination ! ) , to " corner " the offender. The penalty is im- 
 posed in terms for any " false or untrue declaration," without 
 regard to whether the person knows it to he false. One object 
 is, of course, to compel or constrain careful attention to a matter 
 which might otherwise be neglected with no wrong intent but 
 with great loss of revenue. See notes under § 17, ante, as to the 
 maker's possible and probable honest difficulty of determining 
 
THE WAR REVENUE LAW. 77 
 
 precisely what he is legally required to declare. " No such 
 •article " raises many questions of definition which the Act itself 
 does not answer. See Schedule B, post, for details. 
 
 It is not a prerequisite to the addition of the penalty that the 
 return should be willfully false. (1878) German Sav. Bk. v. 
 Archbold, 15 Blatch. 398. 
 
 APPLIES TO DEALERS IN DOMESTIC AND 
 FOREIGN ARTICLES AS WELL AS MANU- 
 FACTURERS; IMPORTED ARTICLES PAY 
 DUTY AND STAMP TAX. 
 
 Sec. 21. Tliat th.e 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 manufac- 
 ture and imported or of domestic manufacture, shall 
 be deemed the manufacturer thereof, and shall be 
 subject to all the taxes, liabilities, and penalties im- 
 posed 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: 
 Provided further, That internal revenue stamps re- 
 quired by existing law on imported merchandise 
 shall be affixed thereto and canceled at the expense 
 of the owner or importer before the withdrawal of* 
 such merchandise for consumption, and the Secre- 
 
78 THE WAR REVENUE LAW. 
 
 tary of the Treasury is authorized to make such 
 rules and regulations as may be necessary for the 
 affixing and canceling of such stamps, not inconsis- 
 tent herewith. 
 
 Applies to Dealers in Domestic and Foreign Articles as Well as. 
 Mannf actnrers ; Imported Articles Fay Duty and Stamp Tax. 
 
 Cf. Act of June 13, 1898, § 24; June 30, 1864, § 169; March 3^ 
 1863, § 27; R. S. § 3435; (1867) Cardinal v. Smith, Deady, 197. 
 under a feature of the 1866 Act now altered. 
 
 In this case the court commented on the fact that the com- 
 missioner had ruled both ways on a point. It suggested that 
 " the commissioner, as a matter of public policy, might instruct, 
 his subordinates to refrain from enforcing this provision " ac- 
 cording to an acknowledgedly doubtful construction, in order to. 
 avoid " unprofitable litigation." By the original ruling nine- 
 tenths of the goods in question had probably paid the tax. The 
 court said " a department ruling made under such circumstance& 
 and from such motives, well enough in itself, can have but little 
 weight in a court." 
 
 STAMPS; PREPARATION, DISTRIBUTION, 
 CANCELLATION; DISCOUNT ON STAMP 
 SALES. 
 Sec. 22. That the Commissioner of Internal Reve- 
 nue shall cause to be prepared and distributed for 
 the payment of the taxes prescribed in this Act suit- 
 able stamps denoting the tax on the document, arti- 
 cle, or thing to which the same may be affixed, and 
 he is authorized to prescribe such method for the 
 cancellation of said stamps, as substitute for or in 
 addition to the method provided in this Act, as he 
 may deem expedi'^nt. The Commissioner of In- 
 ternal Revenue, with approval of the Secretary of 
 
THE WAR REVENUE LAW. 79 
 
 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 au- 
 thority shall expire on the first day of November, 
 nineteen hundred and fifteen, except as to imprinted 
 stamps furnished under contract, authorized by the 
 Commissioner of Internal Eevenue. That the ad- 
 hesive 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 Internal Revenue 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, ex- 
 cept as otherwise provided in this Act. 
 
 Stamps; Preparation, Distribntion, Cancellation; Discount on 
 Stamp Sales. 
 
 Cf. Act of June 13, 1898, § 25; June 30, 1864, §§ 161, 170. 
 
 For general provisions as to stamps, see R. S. § 321, § 3238 
 (special tax stamps), § 3328 (wines), § 3341 (beer), § 3369 
 (tobacco), § 3395 (cigars), etc., and principally §§ 3445, 3446, as 
 amended by 20 Stat. 327, giving the commissioner power to 
 establish and alter any stamps. 
 
 " S'uch stamps," to be sold with a 1% discount, were ruled to 
 apply to adhesive stamps, and not to imprinted documentary 
 stamps nor to proprietary stamps from private dies. T. D. 
 19747, July 22, 1898. 
 
 Stamps are sold, not only at a discount, but, in certain cases,, 
 on credit. (1880) U. S. v. Goldback, 102 U. S. 623, R. S. § 3425. 
 
80 THE WAR REVENUE LAW. 
 
 SCHEDULE A. 
 
 STAMP TAXES. 
 
 Bonds, debentures, or certificates of indebtedness 
 issued on and after the first day of December, nine- 
 teen hundred and fourteen, by any association, com- 
 pany, or corporation, on each $100 of face value or 
 fraction thereof, 5 cents, and on each original issue, 
 whether on organization or reorganization, of cer- 
 tificates 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 of stock in any association, 
 company, or corporation, whether made upon or 
 shown by the books of the association, company, or 
 corporation, or by any assignment in blank, or by 
 any delivery, or by any paper or agreement or mem- 
 orandum 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 pay- 
 ment 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 certifi- 
 cates so deposited: Provided further, That in case 
 
THE WAR REVENUE LAW. 81 
 
 of sale where the evidence 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 certificate the stamp shall 
 be placed upon the certificate; and in cases of an 
 agreement to sell or where the transfer is by de- 
 livery 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 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. 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 per- 
 sons, 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 
 memorandum thereof, as herein required, without 
 having the proper stamps affixed thereto, with in- 
 tent to evade the foregoing provisions shall be 
 deemed guilty of a misdemeanor, and upon convic- 
 tion 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 products or merchandise at any ex- 
 change, or board of trade, or other similar place, 
 either for present or future delivery, for each $100 
 in value of said sale or agreement of sale or agree- 
 
82 THE WAR REVENUE LAW. 
 
 ment 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 agreement to sell as aforesaid there shall be made 
 and delivered by the seller to the buyer a bill, mem- 
 orandum, 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, 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 agree- 
 ment 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, memoran- 
 dum, 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 con- 
 viction 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 agree- 
 
THE WAR REVENUE LAW. 83 
 
 ment to sell, in case of products or merchandise ac- 
 tually delivered at the time of sale or while in ves- 
 sel, boat, or car, and actually in course of transpor- 
 tation, shall he 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 products are actually in course 
 of transportation as aforesaid. 
 
 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 ad- 
 ditional $100 or fractional part thereof in excess of 
 $100, 2 cents. 
 
 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 exceed- 
 ing 5 cents is made a bill of lading, manifest, or other 
 evidence of receipt and forwarding for each ship- 
 ment received for carriage and transportation, 
 whether in bulk or in boxes, bales, packages, bun- 
 dles, or not so inclosed or included; and such ship- 
 per, 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 memoran- 
 dum, a stamp of the value of 1 cent: Provided, That 
 a consignment of newspapers to any one point or to 
 different points by the same train or conveyance 
 
84 THE WAR REVENUE LAW. 
 
 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 of 
 such newspaper shall file on or before the fifteenth 
 day of each month with the collector of internal rev- 
 enue for the district in which such 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 
 company, carrier, express company, or corporation 
 or person to a penalty of $50 for each offense. 
 
 Telegraph and telephone messages: It shall be 
 the duty of every person, firm, or corporation own- 
 ing 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 number of dispatches, messages, or con- 
 versations 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 WAR REVENUE LAW. 85 
 
 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 per- 
 son, firm, or corporation shall in turn pay to the said 
 collector of internal revenue of their respective dis- 
 tricts: 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 con- 
 versations: Provided further, That the messages or 
 dispatches of the oflScers and employees of any tele- 
 graph or telephone company concerning the affairs 
 and service of the company, and like messages or 
 dispatches of the officials 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. 
 
 Bond: For indemnifying any person or persons, 
 firm, or corporation who shall have become bound 
 or engaged as surety for the payment 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 re- 
 quired in legal proceedings, not otherwise provided 
 for in this schedule, 50 cents. 
 
 Certificate of profits, or any certificate or memo- 
 randum showing an interest in the property or ac- 
 
86 THE WAR REVENUE LAW. 
 
 cumulations of any association, company, or cor- 
 poration, and on all transfers thereof, on each. $100 
 of face value or fraction thereof, 2 cents. 
 
 Certificate: Any certificate of damage, or other- 
 wise, and all other certificates or documents issued 
 by any port warden, marine surveyor, or other per- 
 son acting as such, 25 cents. 
 
 Certificate of any description required by law not 
 otherwise specified in this Act, 10 cents. 
 
 Contract: Broker's note, or memorandum of sale 
 of any goods or merchandise, stocks, bonds, ex- 
 change, notes of hand, real estate, or property of 
 any kind or description issued by brokers or' per- 
 sons acting as such, for each note or memorandum of 
 sale, not otherwise provided for in this Act, 10 cents. 
 
 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 purchase or pur- 
 chasers, 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 encumbrance thereon, exceeds 
 $100 and does not exceed $500, 50 cents; and for 
 each additional $500 or fractional part thereof in 
 excess of $500, 50 cents: Provided, That nothing 
 contained in this paragraph shall be so construed 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 warehous- 
 
THE WAR REVENUE LAW. 87 
 
 ing, not exceeding $100 in value, 25 cents; exceeding 
 $100 and not exceeding $500 in value, 50 cents; ex- 
 ceeding $500 in value, $1. 
 
 Entry for the withdrawal of any goods or mer- 
 chandise from customs bonded warehouse, 50 cents. 
 
 Insurance: Each policy of insurance or other in- 
 strument, by whatever 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 corporation, upon the 
 amount of premium charged, one-half of 1 cent on 
 each dollar or fractional part thereof: Provided, 
 That purely cooperative or mutual fire insurance 
 companies or associations carried on by the mem- 
 bers 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 reinsurance 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 executed, or renewed by any person, asso- 
 ciation, company, or corporation, transacting 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 de- 
 scribed and taxed or exempted in the preceding par- 
 agraph and excepting also workmen's compensa- 
 
88 THE WAR REVENUE LAW. 
 
 tion insurance carried 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 obligation guar- 
 anteeing the validity or legality of bonds or other 
 obligations issued by any State, county, municipal, 
 or other public body or organization, or guarantee- 
 ing titles to real estate or mercantile credits exe- 
 cuted or guaranteed by any liability, fidelity, guar- 
 antee, or surety company upon the amount of pre- 
 mium 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 im- 
 posed by this paragraph. 
 
 Passage ticket, for each passenger, sold in the 
 United States for passage by any vessel to a foreign 
 port or place, if costing not exceeding $30, $1; cost- 
 ing more than $30 and not exceeding $60, $3; costing 
 more than $60, $5: Provided, That such passage 
 tickets, costing $10 or less, shall be exempt fropa 
 taxation. 
 
 Power of attorney or proxy for voting at any elec- 
 tion for officers of any incorporated company or as- 
 sociation, except religious, charitable, or literary 
 societies, or public cemeteries, 10 cents. 
 
 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 
 
THE WAR REVENUE LAW. 89 
 
 for the collection of any dividends or interest 
 thereon, 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. 
 
 Protest: Upon the protest of every note, bill of 
 exchange, acceptance, 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. 
 
 Stamp Taxes. 
 
 Schedule A is, for the main part, re-enacted from the Act of 
 1898, eh. 448, June 13, amended as to subds. 2, 3, 5, 6, 10 and 13 
 by the Act of 1901, ch. 806, March 2, and repealed by Act of 
 April 12, 1902. A similar schedule was contained in the Act of 
 June 30, 1864, ch. 173, § 99. 
 
 Bonds, Debentures, Certificates of Stock, etc. 
 
 The proviso may be traced to the Act of 1866, 14 Stat. 134. 
 
 It is to be observed that this tax is on the transaction itself 
 between buyer and seller, and not on the act of brokerage as 
 such, although both the parties to the transaction and the broker 
 (where there is one) are liable to the penalty. The broker's 
 memorandum, as between him and his customer, is taxable under 
 another paragraph, post, at a fiat rate. The tax under this clause 
 is according to face value. The only memorandum or bill re- 
 quired here is for transactions covering stock certificates in 
 blank, but wherever, for any reason, there is a memorandum of 
 sale or delivery or transfer, it must be stamped. 
 
 " Debenture " is nowhere satisfactorily defined. Even in Eng- 
 land, where it is more common, it covers, generally, acknowledg- 
 
90 THE WAR REVENUE LAW. 
 
 ments of debt by a corporation or a large partnership. (1881) 
 British India, etc., Co. v. Com'rs of Inland Rev., 7 Q. B. Div. 165. 
 
 A narrower use of the word in England applies to a sort of 
 floating security. 
 
 For the purposes of this Act, it may be defined " a writing 
 acknowledging a debt," as in (1904) People ex rel. Cohn v. Miller, 
 180 N. Y. 16, under the State franchise tax law, discussing so- 
 called " preferred debenture shares." 
 
 American railroads have issued debentures, especially where 
 large companies pledge their holdings of the securities of smaller 
 roads which they own. Cook, Law of Corporations, 7th Ed., 
 § 776. 
 
 The N. Y. State tax on stock transfers, L. 1905, c. 241, con- 
 stitutional. (1907) Hatch v. Reardon, 204 U. S. 152. 
 
 A broker was indicted for omitting the required stamps from 
 a memo, of sale of R. R. shares. His demurrer, on the ground 
 that the Act of 1898 was unconstitutional, was overruled. Found 
 guilty on trial. Judgment went to the Supreme Court on writ 
 of error and was affirmed. (1904) Thomas v. U. S., 192 U. S. 
 363, affg. (1902) U. S. v. Thomas, 115 Fed. Rep. 207, where an 
 elaborate opinion closes with the words, " The defendant's con- 
 tention, seemingly. Is that, in the procession of constitutional 
 Interpretation, some reason has just now appeared that should 
 awaken the courts to a fundamental error, of which all men for 
 a century have been profundly unconscious. But such attention 
 as is due the inquiry from the trial court confirms the wisdom 
 of the past, and the power of Congress to lay the tax." 
 
 All stock issues pay 5c on $100 face. 
 
 All bond, etc., issues pay 5c on $100 face. 
 
 All sales, etc., i. e., all changes of possession or ownership, 
 pay 2c on $100 face. The stamp on sale, etc., goes 
 
 On the books, if there is no other evidence of transfer; 
 
 On the certificate, if transferee is named; 
 
 On a separate bill or memo., if transferred in blank. 
 
 Though a mining company has millions of shares at a dollar 
 par value and selling for almost nothing, every certificate orig- 
 inally issued must be stamped. Treas. Decis. June 23, 1898 
 (19562). 
 
 It was first ruled under the Act of 1898 that " puts," " calls " 
 and spreads were all taxable. T. D. 20093, Sept. 24, 1898. But 
 on an opinion of the Att. Gen. (April 27, 1899), a* to puts and 
 
THE WAR REVENUE LAW. 91 
 
 calls, the commissioner modified his ruling and taxed only calls 
 and spreads. T. D. 21151, May 12, 1899. The matter was taken 
 to the courts where it was held that a " call " was an agreement 
 to sell, and must be stamped, but not so a " put." (1900) White 
 V. Treat, 181 U. S. 264, reversing 100 Fed. Rep. 290. The court 
 said that ambiguities should be resolved in favor of the taxpayer. 
 
 Where an agent on commission at a branch bucket-shop prop- 
 erly stamped a sale memorandum, and the operation was a single 
 transaction, the principal did not violate the law (Act March 2, 
 1901, 31 Stat. 943), by omitting to stamp another memorandum. 
 (1902) U. S. V. Clawson, 119 Fed. Rep. 994. 
 
 But this case is distinguished in (1904) Municipal Tel. & Stock 
 Co. V. Ward, 133 Fed. Rep. 70, holding that the plaintiff could 
 not recover taxes paid under protest on a series of transactions 
 through " correspondents " who, however, were not really agents. 
 
 Where a broker transacted business through branch agencies, 
 only one memorandum should be stamped. (1912) Metropolitan 
 Exchange v. Gill, 199 Fed. Rep. 545. 
 
 But where one bucket shop co-operates with another In trans- 
 actions, there must be two stamped memoranda. (1907) Eld- 
 redge v. Ward, 155 Fed. Rep. 253, 174 Fed. Rep. 402. 
 
 Where each separate agreement for future delivery was prop- 
 erly stamped, no tax is imposed on the settlements. (1900) 
 Fleshman v. McClaln, 105 Fed. Rep. 610; 106 Fed. Rep. 880. In 
 this case it was also held that the government must collect a 
 stamp tax by selling stamps, and cannot sue for the face value 
 of omitted stamps. A broker who, under threat of suit, paid the 
 collector a sum in lieu of stamps, was entitled to recover. 
 Sales of Products on Exchange. 
 
 Cf. Act of July 1, 1862, § 110, Schedule B; June 30, 1864, § 170, 
 Schedule B; June 13, 1898, Schedule A, amended March 2, 1901. 
 
 The earlier Acts required a stamp on every agreement any- 
 where, but the Acts of 1898 and 1914 apply only to exchange or 
 board transactions. 
 
 This tax was intended to apply to " paper transactions made 
 on the exchange " and not to sales of " merchandise actually 
 delivered contemporaneously with the sale." 
 
 As it originally stood in 1898 it was held constitutional. (1898) 
 Nicol V. Ameis, 89 Fed. Rep. 144 (as to Chicago stock yards), 
 affirmed (1899) Nicol v. Ames, 173 U. S. 509, where the opinion 
 
92 THE WAR REVENUE 1.AW. 
 
 said: "A tax upon the privilege of selling property at the ex- 
 change and of thus using the facilities there offered in accom- 
 plishing the sale, differs radically from a tax upon every 
 sale made in any place. The latter tax is really and practically 
 upon property." 
 
 It was held to be a tax, not on sales for present delivery, but 
 on the exchange privilege. To make this more clear, the Act of 
 1898 was amended by March 2, 1901, adding the second proviso. 
 But when the Act of 1914 passed the House, this paragraph had 
 been merely lifted from the earlier Act of 1898; and the Senate, 
 in an interesting seminar on law and language, made it clear 
 that the purpose was to tax " paper transactions which might 
 involve future delivery, where it was not likely there would bo 
 actual delivery," " exchange transactions pure and simple," " a 
 bucket shop tax." So an improved form of the 1901 proviso was 
 added. (Cong. Rec. Oct. 16, 1914, p. 18385.) 
 
 The tax is determined by value. It is upon the transaction 
 itself, as between parties, and, though on the exchange privilege, 
 is not on the act of brokerage as such. The Act requires a bill or 
 memo, as between buyer and seller, and both they and the broker 
 are liable to the penalty. If there is a broker's note also, as 
 between broker and customer, it pays a flat rate under a later 
 paragraph of Schedule A. 
 
 Some so-called exchanges or boards are little more than bu- 
 reaus of information. The actual transactions take place in pri- 
 vate offices. "At " * * * a " similar place " will doubtless 
 call for construction in attempted application to special in- 
 stances. The object is, avowedly, to get at " gambling " — not at 
 " purchase propositions " as such, but at " bucket shopping," in- 
 cluding the " hedging or insurance proposition." 
 
 (Bank checks, drafts, certificates of deposit, orders for pay- 
 ment, bills of exchange, money orders and letters of credit, were 
 taxed by the Act of 1898, Schedule A, but are omitted from the 
 present Act) 
 
 Promissory Notes. 
 
 This re-enacts only part of one of the paragraphs of Schedule 
 A of the Act of 1898, ch. 448, June 13. A similar tax is found 
 In the Act of 1864, ch. 174, June 30, § 170, Schedule B. Hnd Act 
 of 1862, ch. 119, July 1, § 110, Srhei^nle B. 
 
THE WAR REVENUE LAW. 93 
 
 A paper signed by several, each promising to pay a sum indi- 
 cated, is taxable on the total amount as a note. (1867) Ballard 
 V. Burnside, 49 Barb. 102. 
 
 A receipt for money loaned, importing an obligation to repay, 
 must be stamped. (1870) Hoops v. Atkins, 41 Ga. 109. 
 
 The use of a receipt where a note should be used was ruled 
 to show intent to evade the tax. T. D. 20985, April 8, 1899. 
 
 A due-bill taxable. (1866) Jacquin v. Warren, 90 111. 459. 
 
 An unsigned admission of balance due on accounting is not 
 a taxable note. (1869) Jones v. Jones, 38 Cal. 584; (1813) Wel- 
 lard V. Moss, 1 Bing. 134. 
 
 A promissory note under seal, i. e., a judgment note, or bill 
 obligatory, is a note, not a bond. T. D. 21815, Dec. 4, 1899. 
 
 In 1898 the commissioner directed the collector at New York 
 to advise the clearing house that members must discontinue a 
 method of lending money against bank checks, with collateral; 
 that such checks were acknowledgments of debt used in place 
 of notes, and taxable as such. T. D. 20463, Dec. 27, 1898. 
 
 An indorsement of a note need not be stamped. (1840) Rich- 
 ards V. Frankum, 9 Carrington & P. 221; (1871) Pugh v. Mc- 
 Cormick, 14 Wall. 361, 374. 
 
 A simple I. O. U., without terms as to payment, not taxable. 
 (1795) Fisher v. Leslie, 1 Esp. 426; (1909) Chitty on Contracts, 
 15 Ed. p. 137. 
 
 An unstamped instrument may be the subject of forgery. 
 '<1871) State v. Mott, 16 Minn. 472; (1868) Cross v. Peo., 47 111. 
 152; (1872) State v. Hill, 30 Wis. 416; (1883) Laird v. State, 61 
 Md. 309; (1899) Thomas v. State, 40 Tex. Crim. App. 46, L. R. 
 A. 454, note; (1873) Miller v. Peo., 52 N. Y. 304. 
 
 Express and Freight; Domestic Bill of Lading. 
 
 This is taken with slight change from the Act of 1898, c. 448, 
 30 Stat. 448, Schedule A. Express companies were taxed by the 
 Act of 1862 and were expressly exempted by the Act of 1865, 
 ■c. 78. 
 
 Under the Act of 1898, it was not specifically provided who 
 should pay for or attach the stamp; and it was held that the 
 carrier was not precluded from requiring the shipper to pay the 
 tax. (1900) American Express v. Michigan, 177 U. S. 404, re- 
 
94 THE WMl REVENUE LAW. 
 
 Tersing, 77 N. W. 317. (1898) Crawford v. Hubbell, 89 Fed. Rep. 
 961; (1900) 177 U. S. 419. 
 
 The present Act specifically requires the shipper to attach and 
 cancel the stamp. 
 
 The penalty upon the carrier remains the same, and is for 
 not issuing the bill of lading in every case where the transpor- 
 tation charge exceeds five cents. 
 
 The Georgia State Railroad Commission ordered an express 
 company to supply the required stamps. The company procured 
 an injunction which the Circuit Court of Appeals vacated, order- 
 ing a dismissal. The Supreme Court affirmed, on the ground 
 that a new Act of Congress had, pending the litigation, repealed 
 the tax. (1899) Dinsmore v. Southern Express Co., 92 Fed. 
 Rep. 714; (1900) 102 Fed. Rep. 794; (1901) 183 U. S. 115. 
 
 A check for special delivery baggage from an address in one 
 city to an address in another, such as used by transfer com- 
 panies, is not taxable. T. D. 13, Jany. 9, 1900. 
 
 A check for a bicycle going as baggage is not taxable. T. D. 
 62, March 8, 1900. 
 
 A traveler's baggage, even excess weight, is not express nor 
 freight, and a receipt or check for it does not require a stamp. 
 Op. Atty.-Gen. XXII, 246. 
 
 This paragraph does not expressly exempt shipments for the 
 government. Cf. Telegraph and telephone service, post. Un- 
 der the Act of 1898 it was ruled that express receipt for ship- 
 ment under government contract must be stamped. Op. Atty.- 
 Gen. XXII, 320. 
 
 But not where shipment is for a railroad company over its 
 own lines. Op. Atty.-Gen. XXII, 252. 
 
 Shipments by rail to Canada and Mexico are included. 24 
 Atty.-Gen. Op. 44. 
 
 Under the Act of 1898, " duplicate " bill of lading, etc., did not 
 include a mere copy used as a receipt or for filing and not really 
 an original. (1904) Wright v. Michigan Cent. R. C, 130 Fed. 
 Rep. 843. Cf. (1904) Simpson v. Treat, 126 Fed. Rep. 1003 (copy 
 of charter party). 
 
 The change in the paragraph as to newspapers was primarily 
 a concession to the growing use of interurban trolleys by the 
 increasing number of afternoon dailies, but the new plan expe- 
 dites all deliveries by shipment. 
 
THE WAR REVENUE LAW. 95 
 
 " Carrier " and " person whose occupation is to act as such," 
 are wide terms. Here as elsewhere the distinction will often 
 turn on " occupation." A rural doctor, toting a bundle, is not 
 a carrier. See (1906) City of Topeka v. Jones, 74 Kan. 164; 
 (1905) South. Exp. Co. v. Rose Co., 124 Ga. 581, 5 L. R. A. 619. 
 
 The present Act has eliminated the former exclusion of un- 
 stamped bills of lading from evidence. This change accords 
 with that under §§ 6, 12 and 13, ante. 
 
 (A stamp tax imposed on foreign bills of lading by the Act of 
 1898 was held unconstitutional as taxing exports. [1901] Fair- 
 bank V. U. S., 181 U. S. 283; [1903] N. Y. & Cuba Mail v. U. S., 
 125 Fed. Rep. 320, reversed on another point, 200 U. S. 488. 
 
 The Act of June 27, 1902, c. 1160, provided for the refund of 
 taxes illegally collected on export bills of lading [as also on 
 certain legacies] ; and c. 408 of 1912 fixed a limit of time for 
 filing claims. Regulations as to procedure are in Treas. Circu- 
 lars No. 627, July 3, 1902; No. 628, July 8, 1902.) 
 
 Telegraph and Telephone. 
 
 Under the Act of 1898, c. 448, 30 Stat. 448, telephone and tele- 
 graph messages were taxed under separate paragraphs. Tele- 
 grams had been taxed by the Act of 1862, c. 119, July 1, § 110, 
 Sch. B. The telephone tax was new in 1898. 
 
 As to telegrams the Act of 1898, § 18, forbade the transmis- 
 sion of an unstamped message, but did not expressly require the 
 company to pay the tax. It was generally assumed, and later 
 held, that the sender must stamp the message, as the " maker 
 or signer" under the general provision (§§ 5, 6). The com- 
 panies assumed to cancel uncancelled stamps and to be thereto 
 authorized by the sender. 
 
 It is the duty of the sender (maker or singer) to stamp the 
 message (buy, affix and cancel), and the company is separately 
 forbidden to forward it unstamped. The penalty of $100 upon 
 the sender is to secure payment. The penalty of $10 upon the 
 company is to insure attention and service in the enforcement 
 of the law. (1899) Kirk v. Western Union T. Co., 90 Fed. Rep. 
 809. Followed by (1900) Gray v. West. U. T., 85 Mo. App. 123. 
 
 This is now changed. The penalty on the company is under 
 the general provision of section 23, post. " The person paying " 
 covers the recipient of a " collect " message. 
 
96 THE WAiR REVENUE LAW. 
 
 In 1898 the telephone company was required to pay the tax, 
 and the present specific reference to the origin of messages 
 and the person who pays were absent. 
 
 Where a subscriber's contract was $90 for 600 local calls, this 
 was equivalent to a message rate of 15 cents, and the company 
 was taxable. (1904) N. Y. Telephone v. Treat, 130 Fed. Rep. 340. 
 
 The chief difficulties, and they will be substantial, in applying 
 this provision, will be in determining whether the message rate 
 is 15 cents (under existing contracts with regular subscribers), 
 and in devising by the comany of a satisfactory method of col- 
 lecting the tax. The company must pay, and it must collect 
 as best it can. This will be easy at pay stations having an 
 operator, but the prepayment slot devices offer a problem. The 
 company will perhaps pay this latter tax rather than stop the 
 prepayment service. High rate calls are rare at such stations. 
 Some of the other difficulties are chiefly matters of records and 
 accounting. It would appear that Congress intended the com- 
 panies to bear the burden. 
 
 The company can hardly sue for the pennies, and It may 
 flot be permitted by State boards to " cut off the gas." The 
 government will hardly use its legal machinery to aid the cam- 
 panies. 
 
 The chairman of the Senate Finance Committee said, " These 
 taxes are not paid by the telephone companies. They are paid 
 by the senders. Most of the telephone messages will escape 
 taxation altogether " — as costing less than 15 cents. Cong. Rec. 
 p. 18379. 
 
 " The person paying " covers " reversed charges," as well as 
 the use of a subscriber's telephone by another person. 
 
 Indemnity Bonds and Other Bonds. 
 
 This is a restoration of the language of the Act of 1898. In 
 the amendatory Act of March 2, 1901, to " reduce taxation," the 
 latter part, " all other bonds," etc., was carelessly dropped in a 
 way to carry the exception. In that form it was held to apply to 
 a surety indemnity but not to an administrator's bond. (1902) 
 McNally v. Field, 119 Fed. Rep. 445. 
 
 Similar taxes were Imposed by the Act of 1862, July 1, S 110, 
 Sch. B., and 1864, June 30, § 170, Sch. B. 
 
THE WAR REVENUE LAW. 97 
 
 When the Act of 1898 went into effect it was at first ruled 
 that the " legal proceedings " referred to in Ihe exception were 
 only such as attachment, injunction, appeal, etc.; but, on an 
 ■opinion from the Attorney-General, bonds of executors, adminis- 
 trators and guariiians (all persons under judicial control) were 
 ruled not taxable. Report of Commissioner, 1898, p. 113, and 
 T. D. 20756, March 1, 1899. 
 
 Where an employer is indemnified but the employee signs no 
 bond, the surety document is really a fidelity policy, and there 
 is no tax under this clause. When both the employee and the 
 surety sign, the employee (principal) pays the bond tax, and the 
 surety adds the percentage insurance tax. T. D. 15, Jany. 11, 
 1900, being a letter to the American Surety Co. 
 
 Congress has no power to tax the instrumentalities of a State, 
 e. g., the bond of an administrator, which is an indispensable 
 part of the State's judicial system. (1902) McNally v. Field, 
 119 Fed. Rep. 445. 
 
 Sheriff's bond not taxable. (1869) State v. Garton, 32 Ind. 1. 
 
 Where a bond is required by a State law from an applicant 
 for a saloon license, it is one of the exempted instrumentalities 
 of government. (1902) Ambrosini v. U. S., 187 IT. S. 1; (1900) 
 U. S. V. Owens, 100 Fed. Rep. 70. 
 
 So, also, of a bond required of a notary public. (1900) War- 
 wick V. Bettman, 102 Fed. Rep. 127; 108 Id. 46. In this matter 
 the Attorney-General of Texas tried to argue constitutionality 
 with the Department, but received a fiat ruling that all such 
 bonds of State and local officers would continue to be taxed. 
 T. D., 20510, Jany. 10, 1899. A few days later this ruling was 
 cited to the Governor of Ohio. T. D. 20547, Jany. 13, 1899. An 
 Ohio notary tested the matter in this case. The States still 
 have " rights." 
 
 Certificate of Profit or Interest. 
 
 Cf. Act of 1898, c. 448, June 13, Sch. A; Act of 1864, c. 173, 
 June 30, § 170, Sch. B; Act of 1862, c. 119, July 1, § 110, Sch. B. 
 
 This appears to be a catch-net provision, of rare application, 
 to cover such accumulated profits as have sometimes been di- 
 vided by new stock Issues. 
 
98 THE WAR REVENUE LAW. 
 
 Marine Certificates. 
 
 Cf. Act of 1898, c. 448, June 13, Sch. A; Act of 1864, c. 173. 
 June 30, Sch. B; Act of 1862, c. 119, July 1, Sch. B. 
 
 On the original certificate of damage, but not on copies. T. D. 
 19706, July 18, 1898. And see T. D. 20387, Nov. 26, 1898, as to 
 certificates of local inspection of steamers. Official copies and 
 copies required by law to be furnished to owners are exempt. 
 Likewise the collector's endorsement on registers, enrollments, 
 etc., of change of masters is exempt as a government instru- 
 mentality. 
 
 Other Certificates Beqnired by Law. 
 
 Cf. Act of June 13, 1898, Sch. A; June 30, 1864, § 170, Sch. B; 
 July 1, 1862, § 110, Sch. B. 
 
 Earlier Acts expressly taxed writs and other papers used in 
 legal proceedings. The question of unwarranted interference 
 with State processes came only gradually to be discussed. The 
 elimination of nearly all such taxes in 1867 left a few traces 
 of the earlier language in the statutes. Many decisions and 
 rulings are of little value now, as both courts and Congress 
 have increasingly recognized the exemption of State and local 
 governmental instrumentalities. 
 
 A notarial certificate on a deposition does not require a stamp. 
 T. D. 122, May 11, 1900. So held under the Act of 1864, June 30, 
 c. 173, 13 Stat. 223, 299; (1866) Prather v. Pritchard, 26 Ind. 
 65; (1864) Cardell v. Bridge, 9 Allen, 355. And under the Act 
 of 1898. (1900) Stirneman v. Smith, 100 Fed. Rep. 600. 
 
 But not so where the notarial act is in no sense judicial. Nor 
 does a stamp tax on an ordinary notarial certificate unduly 
 burden an instrument of State government; as the notary him- 
 self is not taxed. (This was a Federal case.) (1904) Sackett 
 V. McCaffrey, 131 Fed. Rep. 219 (acknowledgment of a declara- 
 tion of homestead). 
 
 (1902) Noble v. Citizens' Bk., 63 Neb. 847, a sheriff's certificate 
 of appraisal of realty for a judicial sale — not taxable. 
 
 Government instruments, papers, certificates, disbursing 
 checks, etc., not taxable; but certificates made for private use 
 must be stamped when issued and at the cost of the appellant 
 Op. Atty. Gen. XXII, 134. 
 
THE WAR REVENUE LAW. 99 
 
 Certificates issued by a State officer in the interest of the 
 State are exempt. Certificates required by law, issued at the re- 
 quest, and solely for the use, of private persons, are taxable. A 
 teacher's certificate is exempt. See § 15, proviso. T. D. 19883, 
 Aug. 10, 1898. 
 
 (Charter Parties v?ere taxed by the Act of 1898, c. 448, June 13» 
 Sch. A, but are omitted from the present law. It was held that, 
 where a charter party was executed and left abroad, a copy 
 brought here for necessary use was taxable. [1904] Simpson v... 
 Treat, 126 Fed. Rep. 1003.) 
 
 Broker's Note. 
 
 Cf. Act of June 13, 1898, Sch. A; June 30, 1864, § 170, Sch. B; 
 July 1, 1862, § 110, Sch. B. 
 
 Mala grammatica non vitiat ohartam. 
 
 The paragraph does not mean that " every memorandum of 
 sale of any goods," etc., must be stamped. It is the broker's 
 note, sometimes called memorandum of sale, which is taxed. 
 The purpose is to tax the act of brokerage, not the transaction 
 between parties. Cf. ante, as to sales on exchange. 
 
 A ■' contract note " under the British Act means the note sent 
 by a broker or agent to his principal (except where such prin- 
 cipal being a member of a Stock Exchange in the United King- 
 dom, is acting as a broker or agent for a principal) advising him 
 of the sale or purchase of any stock or marketable security. 
 A broker loses his right to commissions by failing to send a 
 note. Stamp Act, 1891, 54 and 55 Vict. c. 39, §§ 52, 53; Chltty 
 on Contracts, 15th Ed. 1909, c. VI. 
 
 There is nothing in the present Act which requires a broker's, 
 note to be issued, but something of the sort is practically neces- 
 sary in all ordinary stock, etc., transactions. See T. D. 191, July^ 
 31, 1900. Cf. (1900) Pleshman v. McClain, 105 Fed. Rep. 610; 
 s. c. 106 id. 880; and 3 Treas. Dec. 24. 
 
 It would appear that, while the ordinary contract to sell realty 
 is not covered by the last or the present Act, such an agree- 
 ment, negotiated and " issued " by a broker and recognizing his 
 brokerage rights, would be taxable under this clause. Cf. T. D. 
 116, May 1, 1900. 
 
 Quaere: Whether a broker does not in effect issue a broker's. 
 
100 THE WAR REVENUE LAW. 
 
 note when he sends his client a report or even a bill for com- 
 missions? 
 
 Conveyance. 
 
 Ct Act of June 13, 1898, Sch. A; June 30, 1864, § 170, Sch. B.; 
 July 1, 1862, § 110, Sch. B. Ad valorem duties on conveyances 
 were first imposed in England by 48 Geo. Ill, c. 148 (1808). 
 
 The marked change in the present Act is that the tax is now 
 upon the equity of redemption only. Formerly it was on " the 
 consideration or value," without the qualification. This was in- 
 terpreted to mean the value of the property, including any mort- 
 gage liens, as the English Act of 1891, § 57, expressly says. 
 But the Circuit Court held that a master's conveyance of a rail- 
 road, subject to prior liens, required stamps only on the equity. 
 <1899) Central Trust Co. v. C. H. V. & T. Ry., 92 Fed. Rep. 919. 
 
 The actual consideration determines the taxation. Cf. (1873) 
 Hall V. Jordan, 19 Wall. 271; (1881) U. S. v. Grlswold, 7 Saw. 311. 
 
 And a collector might take testimony if he had reason to 
 question the expressed consideration. Circular No. 17, July 13, 
 1864. The English law enforces, by severe penalties, the ex- 
 Iiression of the actual consideration (Act of 1891, 54 and 55 Vict, 
 c 39, § 5) ; and some States have similar requirements. This 
 Act says " consideration or value," but does not expressly pro- 
 hibit fictitious values or nominal considerations. 
 
 The Act of 1898 also included a tax on mortgages. When the 
 Senate eliminated the mortgage tax and limited the deed tax 
 to the interest conveyed exclusive of liens, it also added the 
 precautionary proviso to this clause. 
 
 In requiring a master's foreclosure deed to be stamped for 
 recording, held that the cost of the stamps might be treated 
 as a disbursement against the receiver's funds. The opinion 
 distinguishes the case of a check drawn on funds in court. 
 <1898) Farmers' L. & T. Co. v. Council Bluffs, etc., Co., 90 Fed. 
 Rep. 806. 
 
 A partition deed not taxable. T. D. 50, Feby. 27, 1900. 
 
 A conveyance without consideration by an executor or by one 
 trustee to another trustee Is not taxable. T. D. 52, Feby. 28, 
 1900; 67, March 9, 1900. 
 
 Conveyances executed and delivered, but not recorded, at tbe 
 
t\ 
 
 ■ /' 1^ ' '; "'' '. '.■ ■ 
 / -i ->' I '9 
 
 ■ ^■' 'I 
 
 THE WAR REVENUE LAW. 101 
 
 time the tax law goes into effect, are not subject to taxation 
 when recorded subsequent to that date. T. D. 196, Aug. 9, 1900. 
 
 The Commissioner has warned Registers of Deeds not to re- 
 lax the application of the law ; not to " accommodate " persons 
 who find it inconvenient to stamp instruments; and has sug- 
 gested that a Register who returns papers with instruction at 
 his own expense might properly add a charge to the recording 
 fees. T. D. 94, April 12, 1900. But cf. notes under § 13, ante. 
 
 Some States have held that Congress has no more right to 
 prescribe rules for the transfer of property than to prescribe 
 rules of evidence. 
 
 An unstamped deed is valid to prove title in a partition ac- 
 tion. (1871) Moore v. Moore, 47 N. Y. 467. And see notes un- 
 der §§ 12 and 13, ante. But see (1867) Barney v. Ivins, 22 Iowa, 
 163. 
 
 Whether a deed is adequately stamped, depending merely on 
 the value of the land, is not a federal question reviewable in the 
 Supreme Court. (1865) Lewis v. Campan, 3 Wall. 106, 18 L. 
 Ed. 211. But see (1873) Hall v. Jordan, supra. 
 
 A tax deed does not require a stamp. (1869) Delorme v. 
 Ferk, 24 Wis. 201. 
 
 And see notes, ante, under § 15 as to the taxation of govern- 
 mental instrumentalities. 
 
 A deed of release whereby a partnership receiver turns back 
 property to the partners under a decree closing the administra- 
 tion is not a conveyance requiring stamps. (1900) Mastin v. 
 Mastin, 99 Fed; Rep. 435. 
 
 Love and affection. (1870) Mercer v. Mercer, 29 Iowa, 557. 
 
 A mere declaration of trust in land is not a taxable convey- 
 ance. (1868) Sime v. Howard, 4 Nev. 473. 
 
 A conveyance through a middleman, one of the two transfer": 
 being for a nominal consideration, required only one stamp. 
 (1864) James v. Blauvelt, Fed. Cas. 7180. 
 
 Even under the early Acts which used such words as " utterly 
 ''Old" as to the record of improperly stamped and unstamped 
 instruments, the burden to show fraudulent intent was on the 
 person seeking to set aside. 
 
 The old English attestation is " Signed, sealed, acknowledged 
 and delivered, being first duly stamped, in the presence of ." 
 
 (Leases were taxed in 1898, hut not under the present Act.) 
 
102 THE WAR REVENUE LiAW. 
 
 Cnstom House Entry. 
 
 Cf. Act of June 13, 1898, Sch. A; June 30, 1864, § 170, Sch. B; 
 July 1, 1862, § 110, Sch. B. 
 
 Custom house manifests were taxed under the Act of 1898, but 
 not under the Act of 1914. 
 
 Insurance. 
 
 Cf. Act of June 13, 1898; Sch. A; June 30, 1864, § 170, Sch. B; 
 July 1, 1862, § 110, Sch. B. 
 
 The National Board of Fire Underwriters at a special meet- 
 ing on Oct. 29, 1914, urged upon its members " the inevitable 
 conclusion that the assumption of the stamp tax by companies 
 would be unwarranted and dangerous." This is part of a gen- 
 eral protest against over-taxation, but is primarily occasioned 
 by the failure of the Act to recognize the large proportion of 
 policies issued (requiring the stamps) and later " returned, not 
 wanted." 
 
 Insurance brokers were taxed by the Act of March 3, 1865, etc., 
 but they were not included in the special taxes of 1898 and 1914. 
 
 In the Act of 1898 there were three separate paragraphs (1) 
 life, (2) marine, inland and fire, (3) casualty, fidelity and guar- 
 antee. In the present Act the first, life, is omitted and the other 
 two are welded together, with a new statement of exemptions, 
 Including life, personal accident, health and certain purely co- 
 operative insurance. Re-insurance is also exempted. 
 
 Recognizing that the premiums charged on open marine poli- 
 cies could only be ascertained from the underwriters' books, 
 the underwriters were required to file bonds and make returns, 
 and the stamps were aflixed to the books and cancelled. T, D. 
 19645, June 30, 1898. And a similar plan was adopted for open 
 policies of inland and fire insurance. Circular No. 504, July 
 20, 1898, T. D. 19740. 
 
 The Senate debate was enlivened by a spirited discussion of 
 the old question of the " mutuality " of mutual companies as 
 compared with old line companies. Cong. Rec. pp. 18320 et seq., 
 Oct. 15, 1914. 
 
 An accident policy with quarterly premiums should be 
 stamped as a contract for one year. The company's alleged 
 intended plan of stamping each installment did not satisfy the 
 law. (1900) Buckalew v. U. S., 102 Fed. Rep. 320. 
 
THE WAR REVENUE LAW. 103 
 
 Note that " personal accident " policies are exempt from the 
 new tax. 
 
 "Associations." 
 
 " The committee used that word because some correspondence 
 ■which it had from one or two sources calling its attention to a 
 numher of aggregations, so to speak, of individuals operating 
 sometimes as a sort of joint-stock concern, sometimes as a 
 aort of partnership, and sometimes as an association. To desig- 
 nate each of them would be somewhat cumbersome, and after 
 consulting the dictionary we felt that the word used alone 
 would perhaps cover all these several different sources [sorts?] 
 of aggregations, mutual in their character." Cong. Rec. Oct. 15, 
 1914, p. 18319. 
 
 " The mutual workmen's compensation companies thought they 
 might be embraced in this provision unless they were expressly 
 excepted from it; and, in response to their suggestion, we put 
 in the exception." Cong. Rec, p. 18322. 
 
 Note on Legislation as she is made. 
 
 Mr. S. The Senator is now covering exactly the same ground 
 again. 
 
 Mr. L. I suppose I have a perfect right to do so. 
 
 Mr. S. Oh, the Senator has an absolute right to do so. 
 
 Mr. L. Without having the Senator from undertake the 
 
 task of telling me what I may or may not do in this body. 
 
 Mr. S. Oh, the Senator can say anything he pleases. I do not 
 care. 
 
 Mr. L. Now that we have cleared up that situation, with the 
 kind permission of the Senator I will go ahead and try to say 
 the one or two sentences that I started to say when I first rose. 
 
 Mr. S. Well, go ahead, and for God's sake, get through with It. 
 (Laughter.) Etc., etc. 
 
 Cong. Rec, Oct. 15, 1914, p. 1834-5, while the insurance clause 
 was under debate. 
 
 Passage Ticket. 
 
 Cf. Act of June 13, 1898, Sch. A; June 30, 1864, § 170, Sch. B; 
 July 1, 1862, § 110, Sch. B. 
 
 The paragraph in the Act of 1898 did not have the " sold in 
 the U. S.," and the present change was thought to remove a 
 
104 THE WAR REVENUE LAW. 
 
 discrimination in the former Act in favor of Canadian agentB. 
 An unsuccessful attempt was made to classify tickets according 
 to steamship classes, so as certainly to make the low rate apply 
 to all steerage. The Act of 1898 (in a dislocated proviso in the 
 warehouse paragraph) excepted traflBc between the United States 
 and British North America. 
 
 Quaere as to whether the change in the law may not enable 
 ship companies to sell such tickets in Europe and avoid the tax? 
 
 Members of the diplomatic corps are by comity exempted 
 from stamp taxes such as those on checks, drafts, passage 
 tickets and warehouse receipts. T. D. 170, June 29, 1900. 
 
 Porto Rico is not a foreign country, and passage tickets from 
 United States to Porto Rico are not taxed. T. D. 115, May 1, 
 1900. 
 
 Cf. post as to all Insular Possessions. 
 
 Power of Attorney. 
 
 Cf. Act of June 13, 1898, Sch. A; June 30, 1864, § 170, Sch. B; 
 July 1, 1862, § 110, Sch. B. 
 
 The authorization in an ordinary judgment note is a " war- 
 rant " of attorney, not a power, and is not taxable. (1901) Tol- 
 man v. Treat, 106 Fed. Rep. 679; affmd. 113 Fed. Rep. 892. 
 
 Where a power was executed in England, to convey lands 
 there and in the United States, the omission of a stamp tax did 
 not affect the validity or admissibility in the United States. 
 The penalty in England is not avoidance but inadmissibility until 
 stamped, and the English revenue laws could not prescribe 
 American practice. (1900) Linton v. Natl. L. I. Co., 104 Fed. Rep. 
 684, 592. 
 
 Protest 
 
 Cf. Act of June 13, 1898, Sch. A; June 30, 1864, § 170, Sch. B; 
 July 1, 1862, § 110, Sch. B. 
 
 The practice has been to add the cost of the stamp to the 
 ordinary protest fees. If the protest itself is warranted In law, 
 its necessity or propriety will carry the added charge as a neces- 
 sary incident. In any event there will be, as there ought to be, 
 much protesting against too much protesting. 
 
 (Warehouse receipts were taxed in 1898, but are now omitted 
 from the schedule.) 
 
THE WAR REVENUE LAW. 105 
 
 Parlor Car Seat; Sleeper Berth. 
 
 This tax was not included in Schedule A of the Act of June 13, 
 1898; but, after an unsuccessful attempt to tax the companies 
 on gross receipts, a separate section (§ 28) imposed practically 
 this same tax. In addition to paying the stamp, the company 
 was to affix it. The company will now do both, or perhaps 
 have tickets printed on imprinted stamp paper. 
 
106 THE WAR REVENUE LAW. 
 
 SCHEDULE B, 
 
 Perfumery and cosmetics and other similar arti- 
 cles: For and upon every packet, box, bottle, pot, 
 phial, or other inclosure containing any essence, ex- 
 tract, toilet water, cosmetic, vaseline, petrolatum, 
 hair oil, pomade, hair dressing, hair restorative, hair 
 dye, tooth wash, dentifrice, tooth paste, aromatic 
 cachous, or any similar substance or article, by 
 whatsoever name the same heretofore have been, 
 now are, or may hereafter be called, known, or dis- 
 tinguished, used, or applied as perfumes or as cos- 
 metics, and sold Or removed for consumption and 
 sale in the United States, where such packet, box, 
 bottle, pot, phial, or other inclosure, with its con- 
 tents, 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 ex- 
 ceed 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 
 
THE WAR REVENUE LAW. 107 
 
 retail price or value of 25 cents,- five-eighths of 1 
 ■cent. And for each additional 25 cents of retail 
 price or value or fractional part thereof in excess 
 ■of 25 cents, five eighths of 1 cent. 
 
 Chewing gum or substitutes therefor: For and 
 upon each box, carton, jar, or other package con- 
 taining 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 approval of the Secretary 
 of the Treasury, may prescribe. 
 
 That all articles and preparations provided for in 
 this schedule which are in the hands of manufac- 
 turers 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 aforesaid who 
 are not the manufacturers thereof to affix the proper 
 adhesive tax stamp at the time the packet, box, 
 bottle, pot, or phial, or other inclosure with its con- 
 tents is sold at retail. 
 
 There shall be an allowance of drawback on ar- 
 ticles mentioned in Schedule B of this Act on which 
 any 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 in- 
 
108 THE WAR REVEINUE LAW. 
 
 ternal 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 Reve- 
 nue by the person claiming the allowance of draw- 
 back, and the amount shall be ascertained under 
 such regulations as shall be prescribed from time 
 to time by said commissioner, with the approval of 
 the Secretary of the Treasury. 
 
 The original bill, as it went from the House to the Senate, re- 
 enacted the Schedule B of the Act of 1898. Protests were more 
 persuasive here than in some other matters, and the whole 
 class of medicinal and proprietary articles was cut out, leaving 
 only perfumes, cosmetics and chewing gum. 
 
 Cf. notes under §§ 17-22, inclusive. 
 
 For former schedules, see Act of June 13, 1898, Sch. B; June 
 30, 1864, § 170, Sch. C; July 1, 1862, § 110, Sch. C. And cf. R. S. 
 1878, §§ 3419, 3437. 
 
 The Greek word kosmetikos from which the English cosmetic- 
 is derived means skilled in decorating. The Collector, however,, 
 will not be liberal in exempting things not demonstrably deco- 
 rative; for the Century definition expressly includes any prepa- 
 ration which " helps or professes to be able to help to beautify 
 or improve the complexion." Webster includes " any external- 
 application intended to beautify and improve the complexion, skin 
 or hair." There may thus be a shadow land where, while omit- 
 ting medicines generally, the Act will appear to discriminate 
 against dermatotherapy. 
 
 There will also be some interesting refinement of discrimi- 
 nating differentiation when the revenue detectives come to apply 
 the definition of perfumery and perfume, as exempli gratia 
 whether the substance emits a pleasant odor or a scent which 
 really affects the organs of smell agreeably. 
 
THE WAR REVENUE LAW. 109 
 
 The Department issued a detailed Circular No. 16 — Int. Rev. 
 No. 501, revised, February 8, 1900 (T. D. 37), covering Schedule B 
 ol the Act of 1898. 
 
 Samples may be distributed under restrictions prescribed by 
 the Commissioner. 
 
 Provision is made for permitting sales by slot machines, the 
 «ub-packages being taken from duly stamped larger packages. 
 T. D. 247, Nov. 17, 1900. 
 
 Where automatic atomizers are used for perfumes they will 
 have to be filled from tax-paid bottles. Where chewing gum 
 is automatically delivered, the smaller packages must be taken 
 from larger tax-paid packages. 
 
 A medicated soap containing 20 per cent, carbolic acid is not 
 ■a toilet soap. (1895) Park & Tilford v. U. S., 66 Fed. Rep. 731 
 (tariff). 
 
 Distilled water, though advertised to preserve health, lengthen 
 life, soften, purify and preserve complexion, scalp and hair, is 
 neither perfumery nor a cosmetic, nor a similar article. T. D. 
 21833, Dec. 7, 1899. 
 
 The Act of 1898 expressly exempted natural spring waters. 
 
 As to the right of a dealer to increase the cost to the cus- 
 tomer where the tax is less than one cent. Cf. (1866) Black t. 
 €th Ave. R. R., 1 Daly, 536. 
 
 Eau de Quine Tonique is a cosmetic. (1896) In re Mdse. Im- 
 I)orted by Holt, 75 Fed. Rep. 998. 
 
 What is a phial or vial? (1896) In re Grace, 75 Fed. Rep. 2; 
 (1897) Grace v. Collector, 79 Fed. Rep. 315. 
 
 If the article is not stamped when sold, it is presumed never 
 to have been stamped. (1869) U. S. v. Brown, Deady, 566. 
 
 Speaking of hair oils and things, see the Laws and Orders of 
 the General Court of Massachusetts, 1675: 
 
 " Whereas, There is manifest pride openly appearing amongst 
 us . by some women wearing borders of hair, and their 
 cutting, curling and immodest laying out their hair, which prac- 
 tice doth prevail and increase, especially among the younger 
 sort, this court doth declare against this ill custom . . . and 
 further do empower all grand juries to present to the county 
 ■court such persons . . . and the county court are hereby 
 authorized to proceed against such delinquents either by ad- 
 «ionitlon, fine or correction." 
 
110 THE WAGR REVENUE LAW. 
 
 Cbewing Gum or Substitutes. 
 
 Of course, the boys of other days know that the tail of th»^ 
 title supra wags its head. No medicated masticatory from the 
 Sapota zapotilla, be it naseberry, bully-tree or paraffin, can pos- 
 sibly merit exemption as does good old spruce gum; but It will 
 be difficult to escape so large a word as " substitutes." The 
 tax might be bearable if it were really four cents on the dollar 
 of value; but "retail value" will be held to mean the same as 
 " retail price or value " upon cosmetics. 
 
 " This article seems to have been a sort of football in the 
 way of taxation. . . . People have been prone to ridicule it 
 as a form of luxury not altogether to be commended. At the 
 same time a very strong showing is made for the manufac- 
 turers " — having reference to the 66 per cent, duty on chicle in 
 the Underwood tariff. Senator Burton, Cong. Rec. 18084. 
 
 When the wine tax was elaborated into § 2, ante, the old tax on 
 bottled sparkling and other wines was omitted from Schedule B.. 
 
 Drawbacks on exportations and duties on reimportations are 
 covered by Act of Aug. 5, 1909, 36 Stat. 90. The Department 
 issued regulations in a Circular, No. 39, Aug. 13, 1909, as ta 
 drawbacks on medicinal, etc., preparations. T. D. 29952. 
 Amended Regulations, April 22, 1910, T. D. 30559, and July 27,. 
 1910, T. D. 30831. 
 
 A claim for a statutory drawback (tobacco) may be sued, 
 and the Commissioner may not make an unreasonable regula- 
 tion to prevent recovery. (1906) U. S. v. Hyams, 146 Fed. Rep. 
 15; affirming 139 id. 997. 
 
 A drawback (customs), due and refused, may be sued in the- 
 Court of Claims. (1882) Campbell v. U. S., 107 U. S. 407. 
 
 Sec. 23. 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, firm, company, corporation, or association 
 liable to any tax imposed by this Act, or for the col- 
 lection thereof, shall keep snch records and render,. 
 
THE WAR REVENUE LAW. HI 
 
 under oath, such statements and returns, and shall 
 comply with such regulations as the Commissioner 
 of Internal Revenue, with the approval of the Sec- 
 retary of the Treasury, may from time to time pre- 
 scribe, and every such person, firm, company, corpo- 
 ration, 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 taxes evaded or attempted to be 
 evaded or unlawfully withheld, 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 collec- 
 tion 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 Treas- 
 ury not otherwise appropriated; $170,000 to be 
 added to and made a part of the appropriations for 
 ' ' salaries and expenses of collection of internal rev- 
 nue, nineteen hundred and fifteen; and $30,000 to the 
 appropriation for paper for internal-revenue stamps, 
 nineteen hundred and fifteen." 
 
 Other Latrs Made Applicable. Collection of Taxes. 
 
 "Administrative . . . provisions " include all existing ap- 
 propriate measures for collection and enforcement, including 
 the Government's right to recover hy suit. (R. S. §§ 3213, 3214.) 
 (1910) U, S. V. Chamberlin, 219 U. S. 250, 269. 
 
 Deputies canvass every district in search of persons and ob- 
 jects subject to tax. R. S. § 3172, amend, by 28 Stat. 509. The 
 
112 THE WAR REVENUE LAW. 
 
 appropriate return must be made, and a default or a false 
 return may Involve a summons for testimony and exhibition of 
 books. R. S. § 3173, amend, by 28 Stat. 509. For failure the 
 collector may apply to the court for a contempt attachment. 
 § 3175. Refusal or neglect of return involves a 50 per cent, 
 penalty. False or fraudulent return involves a 100 per cent, 
 penalty. § 3176, amend, by 28 Stat. 509. False return or neg- 
 lect of summons involves as penalty a fine up to $1,000 or prison 
 to one year, or both.. § 3179. Taxes may be collected by dis- 
 traint. §§ 3187 et seq. Suits for taxes and penalties must be 
 in the name of the United States. Judic. Code, § 919; R. S. 
 3213. As to taxes there is no limitation; as to penalties the 
 limitation Is five years, and as to crime, three or two years 
 according to degree. Judic. Code, § 1047, and Act of July 5, 
 1884, 23 Stat. 122. 
 
 R. S. § 3173, as to power of collector to summon for examina- 
 tion does not apply to stamp taxation, but only where assess- 
 ment is on returns. (1900) In re Kinney, 102 Fed. Rep. 468; 
 (1875) In re Becker, Fed. Cas. No. 1208. 
 
 A collector may not enforce production of corporation books 
 where the taxpayer is only a stockholder. (1870) In re Chad- 
 wlck, 1 Lowell, 439. 
 
 Nor a man's private papers. (1885) Boyd v. U. S., 116 U. S. 
 617 (a criminal case). 
 
 Under 18 Stat. 187, Act June 22, 1874, In a civil suit for reve- 
 nue by the government, books and papers may be ordered pro- 
 duced on pain of confessing the allegations. 
 
 Under § 3462 of R. S., a search warrant may issue to search 
 any premises where the applicant officer believes a revenue 
 fraud is being committed. 
 
 And evidence so obtained Is not inadmissible merely because 
 the warrant was improperly Issued. 24 Atty.-Gen. Op. 685; T. 
 D. 1609, in the Matter of Ripper. 
 
 Under R. S. § 3463, rewards are paid to informers. Depart- 
 ment Circular No. 99, 4th Revision; T. D. 21856, of 1899, and 
 Regulations No. 12, revised. Extortion by informers penalized. 
 R. S. § 5484; Crim. Code, § 145. Officers accepting bribes. 
 B. S. § 3169. Officers must not aid violators in preparing state- 
 ments. T. D. 1607. 
 
THE WAR REVENUE LAW. 113 
 
 13 Stat. 232, June 30, 1864, amended by 14 Stat. 107, July 13, 
 1866, gave the remedy of distraint. This was not superseded 
 by the provision for equity suit in 15 Stat. 125, 167, July 20, 1868, 
 which gave a cumulative remedy. (1908) Blacklock v. U. S., 
 208 U. S. 75, distinguishing (1889) Mansfield v. Excelsior Re- 
 fining Co., 135 U. S. 326; both dealing with the question as to 
 what passes when the government seizes land and sells it. 
 See R. S. § 3187, § 3213. 
 
 Act of March 4, 1913, c. 166, amends R. S. § 3186, unpaid taxes 
 a lien on property. 
 
 As to distinction between distraint and sale (and replevin 
 by true owner), and seizure, condemnation and sale, see (1907) 
 Sheridan v. Allen, 153 Fed. Rep. 568. 
 
 If the statute fails adequately to provide a method of collec- 
 tion, the omission may not be cured by regulation under the 
 power given by the statute to the Commissioner, to the extent 
 of making monthly assessments of an annual tax. (1901) 
 Spreckels v. McClain, 109 Fed. Rep. 76. 
 
 An interesting instance of collecting " back taxes " (which are 
 ordinarily the product of special agents' Investigations) was the 
 plan adopted after the Equitable Building fire in New York city. 
 Tentative returns were accepted, with permission to amend. 
 Report of Commissioner, 1913, p. 14. 
 
 A return for the assesment of a special tax must be verified 
 by the person himself and not by an " agent." T. D. 49, Feb. 
 27, 1900. 
 
 The government may require the production of books and 
 papers in civil suits as well as in criminal. Act of June 22, 
 1874, § 5, 18 Stat. 187. 
 
 As to perjury: § 125 Criminal Code; R. S. § 5392; (1908) 
 U. S. V. Lamson, 165 Fed. Rep. 80; (1891) U. S. v. Bedgood, 4fl 
 Fed. Rep. 54; (1890) U. S. v. Edwards, 43 Fed. Rep. 67. 
 
 Oath before notary. (1888) U. S. v. Hall, 131 U. S. 50. 
 
 Before deputy collector. (1905) U. S. v. Hardison, 135 Fed. 
 Rep. 419. 
 
 The steps requisite for the seizure and sale of lands are set 
 forth in the Revised Statutes. The collector canvasses for per- 
 sons liable, § 3172; return is made or compelled, §§ 3173-3181; 
 the commissioner makes assessment and certifies to the col- 
 lector, S 3182; the collector gives ten days' notice to pay, S 3184; 
 
114 THE WAE REVENUE LAW. 
 
 the tax becomes a lien after this, § 3186; and the collector may 
 then distrain and sell, §§ 3187-3188; realty can be sold only 
 after failure to find enough personalty, § 3196; the party Is en- 
 titled to notice of sale, § 3197. (1878) Brown v. Goodwin, 75 
 N. Y. 409. 
 
 All prerequisites must be strictly complied with. (1882) U. 
 S. V. Allen, 14 Fed. Rep. 263. 
 
 Other Laws Made Applicable. Penalties. 
 
 See the notes ante passim. 
 
 The general provision for the recovery of penalties is found in 
 R. S. § 3213 et seq. The collector shall prosecute forfeitures, 
 shall sue in the name of the United States for fines and penal- 
 ties, and shall receive moneys so collected (including costs). 
 
 A penalty may be recovered by indictment or by a civil action 
 for debt. (1890) U. S. v. Craft, 43 Fed. Rep. 374; (1871) U. S. 
 V. Foster, 2 Biss. 453; (1866) U. S. v. Morin, 4 Biss. 93; (1893) 
 Lees V. U. S., 150 U. S. 476; (1880) U. S. v. Chouteau, 102 U. S. 
 603. 
 
 All persons participating in acts which are misdemeanors are 
 liable as principals. (1893) U. S. v. Sykes, 58 Fed. Rep. 1000. 
 
 The double tax penalty is from R. S. § 3176, amended by 28 
 Stat. 509, and it is also specially enacted as to spirits. §§ 3256, 
 3296. 
 
 Constitutional. (1872) Doll v. Evans, 15 Int. Rev. Rec. 143, 
 144. 
 
 The penalty attaches to an untrue report, although it be not 
 wilfully false. (1878) Germ. Sav. Bk. v. Archbold, 15 Blatch. 398. 
 
 There being no provision as to Schedule B analagous to that 
 for post-stamping under A, it was ruled that voluntary dis- 
 closure, within the calendar month, of a liability would avoid 
 the penalty. T. D. 239, Nov. 3, 1900. 
 
 A discussion of forfeitures is found in (1899) U. S. v. Two 
 Barrels Whiskey, C. C. A., 96 Fed. Rep. 479, where a team and 
 wagon being used without the owner's knowledge to facilitate 
 a revenue fraud, were not forfeited. 
 
 Cf. (1904) U. S. V. One Black Horse, 129 Fed. Rep. 167, where 
 a liveryman's horse and wagon were forfeited for a similar use 
 of them without the owner's knowledge. The court suggested 
 
THE WAR REVENUE LAW. 115 
 
 that the claimant should pursue the offender or seek remission 
 from the government. 
 
 Contracts made for the purpose or with intention to evade 
 revenue laws are illegal at common law, but only where both 
 par'-ies are parties to the intentional wrong. • (1826) Armstrong 
 V. Toler, 11 Wheat. 258; (1850) Kreiss v. Seligman, 8 Barb. 439. 
 
 All offenses against revenue laws are purely statutory. There 
 are no common-law offences against the United States. (1891) 
 U. S. V. Eaton, 144 U. S. 677, 687. 
 
 The penalties imposed do not exclude personal liability. They 
 are imposed to induce payment of a debt and are not a substi- 
 tute for payment. Both on general principles and because the 
 Act of 1898, c. 448, extended R. S. § 3213, to the war tax, the gov- 
 ernment may sue in a civil action to recover a stamp tax under- 
 paid on a deed. (1911) U. S. v. Chamberlin, 219 U. S. 250; (1900> 
 Fleshman v. McClaln, 105 Fed. Rep. 619; 106 Fed. Rep. 880. 
 
 Revenue officers are liable in damages for wrongful seizures, 
 but where the court certifies probable cause the recovery is 
 paid from the treasury. R. S. § 989; (1904) Haymes v. Brown, 
 132 Fed. Rep. 525; (1905) Agnew v. Haymes, 141 Fed. Rep. 631. 
 
 Department rules and regulations cannot be relied upon as 
 affecting rules of evidence in court. (1904) U. S. v. Cole, 134 
 Fed. Rep. 697. 
 
 The burden of proving that a special tax has been paid rests 
 on the accused. (1868) U. S. v. Devlin,- 6 Blatchf. 71. 
 
 The imposition of a fine or a forfeiture does not preclude the 
 superimposition of the other. (1904) U. S. v. 7 Bbls. of Whisky, 
 131 Fed. Rep. 806. 
 
 Stamps and marks on packages of spirits are not In any 
 respect intended to protect purchasers, but only to prevent 
 fraud and obtain revenue; and a dealer may be penalized or 
 suffer forfeiture for wrong marking even although the stamps 
 used are excessive for the quantity of liquor. Id. See R. S. 
 §§ 3289, 3323. 
 
 Attempts have been made to claim a sort of estoppel against 
 the government by reason of real or purported statements or 
 acts of officials. See (1904) Christie-Street Co. v. U. S., 12» 
 Fed. Rep. 506. 
 
 " The government would be in a sorry plight if the neglects,, 
 the earless speeches, and self-excusing or self-serving statements 
 
116 THE WAR REVENUE LAW. 
 
 of its ministerial officers or agents could create waivers and 
 estoppels in suits by and against the government." Phillips, 
 D. J. 
 
 An absence of wrong intent will not save butter with an ab- 
 normal absorption of water from being classed as adulterated, 
 under the Oleomargarine Act, May 2, 1902, c. 784, 32 Stat 194. 
 (1908) Coopersville Co. v. Lemon, 163 Fed. Rep. 145. 
 
 A grocer who sold oleomargarine was held a taxable retail 
 dealer, although he honestly supposed he was selling butter. 
 (1899) Eagle v. Nowlin, 94 Fed. Rep. 646. 
 
 But see (1911) U. S. v. 11150 Pounds of Butter, 188 Fed. Rep. 
 157; (1912) 195 Fed. Rep. 657. 
 
 " The law is not so unreasonable as to attach culpability, and 
 consequently to impose punishment, where there is no intention 
 to evade its provisions, and the usual means to comply with 
 them are adopted. All punitive legislation contemplates some 
 relation between guilt and punishment. To inflict the latter 
 where the former does not exist would shock the sense of justice 
 of everyone." Field, J., in (1877) Felton v. U. S., 96 U. S. 699, 
 703, action for penalty for defective arrangement of a distilling 
 plant. 
 
 Further, on intent, see (1873) U. S. v. Buzzo, 18 Wall. 125 
 (stamp tax; (1869) In re Quantity of Spirits, 3 Ben. 552; Fed. 
 Cas. 11495, as to " knowingly and wilfully." 
 
 No question of intent is involved in a prosecution under R. S. 
 § 3449. It is a violation to ship liquors marked outside as 
 " groceries." (1907) U. S. v. Liquor Dealers, 156 Fed. Rep. 219. 
 
 Nor under § 3324 for failure to efface stamps and marks when 
 emptying a cask of spirits. (1910) U. S. v. Gallant, 117 Fed. 
 Rep. 281. Cf. (1908) U. S. v. Rogers, 164 Fed. Rep. 520. 
 
 To have in possession a stamp which has accidentally fallen 
 off a package is an offense under R. S. § 3324, but not under the 
 Act of March 1, 1879. (1885) U. S. v. Spiegel, 116 U. S. 270. 
 
 A wrongful act by one partner in the course of business makes 
 all partners liable to the penalty. Under old Rev. Stat. c. 47. 
 (1866) U. S. V. Thomasson, 4 Biss. 99. 
 
 So as to double penalty for illegal importations. (1849) Com- 
 monwealth V. Sloan, 4 Cush. 52. 
 
 Joint indictment of partners for false returns. (1866) U. S. 
 
THE WAR REVENUE LAW. 117 
 
 V. McGinniss, 1 Abb. U. S. 120, cited also as U. S. v. Montjoy, 
 S Int. Rev. Rec. 83, Fed. Cas. 15,678. 
 
 An employer Is responsible for wrongful act of employee only 
 when the act Is ■within the scope of employment. (1832) U. S. 
 V. Halberstadt, Gilp. 262, Fed. Cas. 15,276. 
 
 Protest, SeclamatioB and BecoTsry. 
 
 As was said, or implied, in the Introductory, a tax collector 
 may not be given discretionary power. Despite the demand 
 in the Senate for the repayment to certain States of a cotton 
 tax collected 1862-1868, where the Supreme Court split even on 
 constitutionality of the law, the Federal government usually 
 pays back what it improperly takes from citizens. 
 
 No Suit May Be Brought to Restrain a Tax. R. S. § 3224. 
 
 Recovery and refund are provided for. R. S. §§ 3220-3231. 
 
 Appeal must first be made to the commissioner. R. S. §§ 3220, 
 3226. 
 
 The appeal may be lodged with the local collector. (1881) U.. 
 S. V. Savings Bk., 104 U. S. 728. 
 
 The limitations for claims Is two years. R. S. §§ 3227, 3228. 
 (1883) James v. Hicks, 110 U. S. 272. 
 
 Congress has at times extended the time for reclaims of taxes- 
 wrongly collected. B. g. under Act of 1898. See Act of July 27, 
 1912. 
 
 Claimants are not very strictly held to the need of formal pro- 
 test. It may be constructive or implied. (1907) Johnson v. Her- 
 old, 161 Fed. Rep. 593. See (1913) Abrast Realty Co. v. Max- 
 well, 206 Fed. Rep. 333; (1880) Real Est. Bk. v. U. S., 16 Ct. 
 CIS. 335. See. also as to protest: (1908) Herold v. Kahn, 159 
 Fed. Rep. 608; (1903) Cheseborough v. U. S., 192 U. S. 253; 
 (1906) N. Y. & Cuba Mall v. U. S., 200 U. S. 488. 
 
 Department Regulations No. 14, as revised, give instructions 
 as to preparing claims. 
 
 The commissioner may compromise, with or without suit, civil 
 or criminal. R. S. § 3229. 
 
 Taxes voluntarily paid, without protest or notice, cannot be 
 recovered. (1904) Cheseborough v. U. S., 192 U. S. 253. In this 
 case the claimant had bought stamps and used them on a con- 
 veyance and subsequently sought to attack the constitutionality 
 of the law (Act of June 13, 1898). Both in this case and another 
 
118 THE WAR REVENUE LAW. 
 
 (where the sj;amps were used on the manifest of a vessel in 
 order to obtain the clearance required by statute) the question 
 of duress was unsuccessfully raised. (1906) U. S. v. N. Y. and 
 Cuba Mail, 200 €. S. 488; 125 Fed. Rep. 320. And see (1884) 
 Swift Co. V. U. S., Ill U. S. 22 (match tax under Act of 1870, ch. 
 255, § 4). (1903) Christie Street Co. v. U. S., 126 Fed. Rep. 991, 
 994; (1901) Fairbank v. U. S., 181 U. S. 283; ^1913) Merck v. 
 Treat, 202 Fed. Rep. 133. 
 
 Special Acts of Congress are sometimes passed to refund over- 
 paid stamp taxes, such as stamps from private dies. Cf. Act 
 of Feb. 24, 1905. 
 
 Unlawful exaction may subject a collector as tort feasor to 
 an action of trespass, or for damages sounding in tort. See 
 (1904) Christie v. U. S., 129 Fed. Rep. 506. 
 
 As to recovery from the government under R. S. § 3226 by ap- 
 pealing to the department for restitution, see (1904) Christie 
 ^. U. S., supra; (1875) Cheatham v. U. S., 92 U. S. 85; (1881) U. 
 S. V. Sav. Bank, 104 U. S. 728; (1883) Snyder v. Marks, 109 U. S. 
 189 ; (1891) Comr. Louisville v. Buckner, 48 Fed. Rep. 533 ; (1885) 
 Kings Co. Sav. Inst. v. Blair, 116 U. S. 200. 
 
 The remedy under R. S. § 3226, must be pursued subject to 
 
 the conditions and limitations in the statute. In the absence of 
 
 such statute there would be no such remedy. (1903) Christie- 
 
 -Streeit v. U. S., 126 Fed. Rep. 991, sustaining demurrer and again 
 
 (1904) 129 Fed. Rep. 506, sustaining amended petition. 
 
 As to when interest will be allowed on a recovery back from 
 'the government, see (1914) Klock Produce Co. v. Hartson, 212 
 Fed. Rep. 758. 
 
 Interest allowed in judgment for recovery of taxes wrongfully 
 collected against protest and promptly reclaimed by suit. (1900) 
 Penna. Co. for Ins. v. McClain, 105 Fed. Rep. 367, affirmed 106 
 id. 618. 
 
 Delay in prosecuting the reclaim affects the right to interest. 
 (1900) Burrough v. Abel, 105 Fed. Rep. 366. 
 
 As to recovery of legacy tax (Act 1898, c. 448; 30 Stat. 448) 
 from executor or legatee or the property, and by what proceed- 
 ings, see (1914) U. S. v. Priest, 210 Fed. Rep. 332; (1911) U. S. 
 V. Fidelity Trust Co., 222 U. S. 158, on refunding inheritance 
 -tax (Acts of 1898, c. 448; 1902, c. 1160); distinguishing (1905) 
 Vanderbilt v. Eidman, 196 U. S. 480. 
 
THE WAR REVENUE LAW. 119 
 
 A broker who sues to recover taxes wrongfully collected must 
 be able to set forth in his bill or a bill of particulars all the 
 transactions in question. (1905) Haight & Freese v. McCoach, 
 135 Fed. Rep. 894. 
 
 A person who is in fact liable for a special tax cannot recover 
 one he has paid on the ground of defective or illegal assess- 
 ment. (1907) Craft v. Schafer, 153 Fed. Rep. 175. 
 
 As to lost stamps. (1896) U. S. v. American Tobacco, 166 U. 
 S. 468; (1903) Cheeseborough v. U. S., 192 U. S. 253; Freeman 
 v. U. S., 157 Fed. Rep. 195. 
 
 Existing Laws Made Applicable; Constmction of Tax Laws. 
 
 The present emergency Act makes a large and important ad- 
 dition to existing statute law, but it repeals none. 
 
 In a general way, the provisions here made applicable are to 
 be found in R. S. Title XXXV, especially ch. 2, as to assess- 
 ment and collection. The revision is, however, so old, and 
 there are so many separate statutes (not always carefully 
 drafted to fit into the scheme), that it is often difficult to ascer- 
 tain the present state of the law. The easiest quick m^hod, in 
 connection with the internal revenue system, is to examine the 
 official compilation issued by the depatment In 1911, where an 
 attempt is made to sandwich the new, and the amendatory, 
 laws among the sections of the R. S. In several of the cases 
 cited in this book, on construction and interpretation, the 
 courts have carefully traced the statute law affecting the mat- 
 ters under consideration. 
 
 In the main, the department will, in collecting this new emer- 
 gency tax, at least follow its own relatively recent precedents 
 (from the war revenue of 1898), even if these are not always 
 followed by the courts. See ante, Introductory and post, in this 
 ■chapter. The commissioner has large powers under R. S. § 3447, 
 as to establishing methods where none is provided, and " mak- 
 ing such regulations as may have become necessary by reason 
 of any alteration of law in relation to internal revenue." 
 
 There is some confusion, not so much in the decisions reached 
 as in the language of opinions, regarding the way in which tax 
 laws should be construed. A statute may impose a forfeiture or 
 other penalty, and yet not be, technically speaking, a penal law. 
 Revenue acts are not, technically, penal laws. Their penalties 
 
120 THE WAR REVENUE LAW. 
 
 are imposed primarily to prevent fraud and accomplish a public 
 good. (1845) Taylor v. U. S., 3 How. U. S. 197. 
 
 Revenue laws are not like penal laws, to be strictly construed, 
 but should be construed fairly and reasonably. (1904) U. S. v. 
 Cole, 134 Fed. Rep. 697; (1901) Eidman v. Martinez, 184 U. S. 
 578 and cases cited. 
 
 Revenue laws are remedial, rather than penal, and a defend- 
 ant is not to be favored. (1865) Cliquot's Champagne, 3 Wall. 
 114, 145; (1889) U. S. v. Stowell, 133 U. S. 1, 12; (1900) U. S. v. 
 246 1-2 Pounds Tobacco, 103 Fed. Rep. 791. 
 
 Reveneue laws are to be construed in a way to favor their 
 enforcement. (1845) Taylor v. U. S., 3 How. U. S. 197; (1874) 
 Smythe v. Fiske, 23 Wallace, 374, 380; (1832) U. S. v. Breed, 24 
 Fed. Cas. 1222, No. 14,638; (1870) U. S. v. Hodson, 10 Wallace, 
 395; (1887) Chicago, W. & St. P. v. U. S., 127 U. S. 406. 
 
 License taxes should receive a reasonable construction, fair 
 to both parties. (1900) De Bary v. Souer, 101 Fed. Rep. 425; 
 (1911) John J. Sesnon v. U. S., 220 U. S. 609, denying certiorari 
 on 182 Fed. Rep. 573. 
 
 The courts,' perhaps not always consciously, feel that there is 
 a difference among revenue laws, and that, whatever the precise 
 language may be, some offenses are more serious than others. 
 It Is not intended to say that judges deliberately permit either 
 their own temperamental attitudes or their views of public opin- 
 ion unduly to influence them. Psychologists know that the will to 
 do right and the desire to think straight do not make up all the 
 powers and suoeptibilities of the human spirit. Sympathy is 
 best excluded from judgment by recognition of the paramount 
 necessity for uniform and certain justice. 
 
 Attempts have been made to group such laws, as to the degree 
 of strictness of interpretability, into those which do, and those 
 which do not, impose forfeitures and quasi-criminal penalties. 
 In some instances of stamp taxes, however, as where an un- 
 stamped instrument is excluded from evidence or record, or as 
 a check which cannot be cashed, there is obviously small need 
 of judicial severity in imposing even statutory penalties. On the 
 other hand, regulative or quasi-police power taxes, even when 
 the statute is not expressly more severe (as it generally is), are 
 inevitably regarded by all public law officers as penal or quasi- 
 penal. 
 
THE WAR REVENUE LAW. X21 
 
 It is a settled rule that general comprehensive legislation on 
 a subject is not superseded by later special or narrower legis- 
 lation unless the contrary clearly appears. Revised Statutes, 
 title XXXV, contains such general laws. Any new enactment 
 imposing internal revenue taxes is assumed to have contemplated 
 the existence of the established system of revenue laws to which 
 resort may be had in carrying the new law into effect. (1912) 
 U S. V. Barnes, 222 U. S. 513, holding R. S. § 3177 applicable to 
 oleomargarine. 
 
 The letter of the law sometimes crowds the spirit, as in the 
 case of the peddler who had a license but failed to post his 
 name, residence or number conspicuously on his vehicle or his 
 goods. He was convicted (upheld on appeal), although he was 
 a walking peddler and carried his wares in his pocket. (1876) 
 Commonwealth v. Cusick, 120 Mass. 183. 
 
 A construction adopted and applied by an executive ofllcer is 
 entitled to much weight in order to avoid conflict between two 
 departments in executing a law. (1865) Hugus v. Strlckler, 19 
 Iowa, 413; (1865) Smith v. Waters, 25 Ind. 397; (1896) In re 
 Mdse. Imported by Hoy t, 75 Fed. Rep. 998; (1901) Fairbank v. 
 U. S., 181 U. S. 283, 308, where there is a full discussion of the 
 value of contemporaneous exposition and departmental construc- 
 tion of statutes, by Brewer, J. And see cases on the value of 
 the commissioner's rulings, ante, Intro'ductory. 
 
 English courts recognize usages of the stamp ofllce as a prac- 
 tical commentary on the law, although not conclusive. Edwards 
 on The Stamp Act, p. 9 ; Tilsley on Stamp Laws, p. 10. 
 
 The court (C. C. A., 3d Ct), in (1901) McClain v. Penna., 
 etc., Co., 108 Fed. Rep. 618, 620, passing on the War Tax of 
 1898, said: "If we were not fully convinced of the correctness 
 of the views we have expressed, all doubt upon the subject would 
 be removed by consideration of the fact that the War Revenue 
 Act of 1864, the tax imposing language of which was, so far as 
 material, precisely the same as that of the present Act, had been 
 officially administered in accordance with our understanding of 
 the effect of that language, and this established construction of 
 It must be presumed to have been known to Congress when it 
 again used the same language in the Act of 1898." And see 
 (1904) James v. Appel, 192 U. S. 129, 135; (1898) TJ. S. v. Wong 
 Kim Ark, 18 Sup. Ct. Rep. 456. But cf. (1873) Dollar Sav. Bk. 
 T. TJ. S., 19 Wall. 227. 
 
122 THE WAR REVENUE LAW. 
 
 As to what influence congressional proceedings on a bill should 
 Jiave in interpreting an Act, see 27 Opin. Atty.-Gen. 68, and 
 (1875) U. S. V. Union Pacif. R. R. Co., 91 U. S. 72. 
 
 " What the lawmakers intended to do is immaterial when 
 what they actually did do is free from doubt." Cox, C. J., in 
 (1904) N. Y. Telephone v. Treat, 130 Fed. Rep. 340, 342. 
 
 Revised Statutes, § 3449, as to shipping liquors under other 
 than proper names and marks, is highly penal in character and 
 should be construed strictly. (1902) U. S. v. 20 Boxes, 123 Fed. 
 Rep! 135, affirmed (1904) 133 id. 910. 
 
 In deciding that the shipper of a quantity of corn liquor in 
 boxes marked "glass; this side up with care," did not violate 
 R. S. § 3449, McDowell, D. J., uses this strange language:' "If 
 the statute applies to all persons, a farmer or lawyer, moving 
 his place of residence, and marks the box ' household goods,' 
 is liable to a fine of $500 . . whether one bottle or a, large 
 quantity are thus moved." (Italics ours. — Why "lawyer?"!) 
 
 The construction should be fair to, if not in direct favor of, 
 •the taxpayer. (1902) McNally v. Field, 119 Fed. Rep. 445, 448 
 (stamp tax of 1898) ; (1902) U. S. v. Mullins, 119 Fed. Rep. 334 
 (tax on spirits) ; (1904) Benziger v. U. S., 192 U. S. 38, 55 
 (tariff); (1896) Mutheson & Co. v. U. S., 71 Fed. Rep. 394 
 (tariff); (1893) Rice & Co. v. U. S., 53 Fed. Rep. 910 (tariff); 
 (1891) American Twine Co. v. Worthington, 141 U. S. 468, 474 
 {tariff) ; (1887) Hartranft v. Wiegmann, 121 U. S. 609, 616 
 (tariff); (1873) U. S. v. Isham, 17 Wall. 496 (stamp tax of 
 1864) ; (1870) U. S. v. Hodson, 10 Wall. 395 (distiller) ; (1868) 
 U. S. V. Olney, 1 Abb. U. S. 275 (lottery).' 
 
 Stamp laws are positivi juris, involving nothing of principle or 
 reason. (1834) Morley v. Hall, 2 Dowl. 494. Thty are to be 
 •construed strictly, with liberality as to exceptions. (1827) U. S. 
 v. Gooding, 12 Wheat. 460. (1807) Warrington v. Furbor, 8 East. 
 242. The government will not be given the benefit of an uncer- 
 tain law. (1855) Gurr v. Scudds, 11 Exch. R. (H. & G.) 190; 
 (1828) Doe v. Amos, 2 M. & R. 180. 
 
 Stamp laws have been held directly penal, in restraint of com- 
 mon right and to be construed strictly. (1865) Hugus v. Strickler, 
 19 Iowa, 413; (1864) Celley v. Gray, 37 Vt. 136; (1868) Boyd v. 
 Hood, 57 Pa. 98; (1867); Vail v. Knapp, 49 Barb. 299; (1869) 
 New Haven, etc., Co. v. Quintard, 31 How. Pr. 29. 
 
THE WAR REVENUE LAW. 123 
 
 "A thing may be within the letter of a statute and not within 
 its meaning, and within its meaning, though not within its letter. 
 The Intention of the lawmaker is the law." (1874) Smythe v. 
 Piske, 23 Wall. 374, 380, holding that revenue laws are to be con- 
 strued liberally, as not being rigidly penal. 
 
 " In cases of serious ambiguity in the language of the Act, 
 or doubtful classification of articles, the construction is to be 
 in favor of the importer, as duties are never imposed on the 
 citizen upon vague or doubtful interpretations." (1863) Powers 
 V. Barney, 5 Blatchf. 202 (tariff). And see (1873) U. S. v. Isham, 
 17 Wall. 496, 504; (1886) Hartranft v. Weigmann, 121 U. S. 609; 
 (1855) Gurr v. S'cudds, 11 Exch. R. (H. & G.) 190; (1828) Doe 
 V. Amos, 2 M. & R. 180. 
 
 It is constitutional to increase an excise as well as a property 
 tax, and such an increase may be made at least while the prop- 
 erty is held for sale and before it has passed into the hands 
 of the consumer. (1902) Patton v. Brady, 184 U. S. 608, a to- 
 bacco case, with an interesting general discussion of excise law 
 in the opinion of Brewer, J. 
 
 Held, under the Act of 1898, that tax stamping of tobacco in. 
 the factory at the old rate was a constructive removal and war- 
 ranted the assessment of the additional tax. (1900) Robards 
 Tobacco Co. v. Franks, 103 Fed. Rep. 276, affirmed, 112 id. 784. 
 
 Congress may tax anything except exports; but its direct taxes 
 must be apportioned, and its indirect taxes must be uniform. 
 (1866) License Tax Cases, 5 Wall. 462, occupation tax. Act of 
 1864; (1894) Income Tax Cases, 157 U. S. 429, income tax of 
 1894; (1898) Nicol v. Ames, 173 U. S. 509, war tax 1898, sale on 
 exchange; (1880) Springer v. U. S., 102 U. S. 586, income, Act of 
 1864, 1865; (1903) Spreckles v. McClain, 192 U. S. 397, 48 L. R. A. 
 496, on sugar refining, 1898; (1868) Pacific Ins. Co. v. Soule, 7 
 Wall. 433, income tax. Acts of 1864, 1866. 
 
 But the federal government may not tax either the property 
 or the instrumentalities of a State. (1894) Pollock v. Trust Co., 
 157 U. S. 429, 584. And see notes, ante, under § 15. 
 
 Further, as to constitutionality of internal revenue laws, see 
 (1903) Thomas v. U. S., 192 U. S. 363, 48 L. Ed. 481, as to memo- 
 randum of stock sale; (1901) Bettman v. Warwick, 108 Fed. Rep. 
 46, as to a notary public's official bond; (1901) Dougherty v. 
 U. S., 181 U. S. 622, 45 L. Ed. 1033, as to oleomargarine; (1910) 
 Flint T. Stone Tracy Co., 220 U. S. 107, 55 L. Ed. 389, as to cor- 
 
124 THE WAR REVEJNUE liAW. 
 
 poratlon excise tax; (1901) Patton v. Brady, 184 U. S. 608, 46 li- 
 Ed. 713, as to the increased tobacco tax under the Act of 1898; 
 (1905) South Carolina v. U. S., 199 U. S. 437, 50 L. Ed. 261. 
 
 Sec. 24. That tlie 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 the first day of January, nineteen hundred and 
 sixteen, the provisions of section thirty-three hun- 
 dred 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 im- 
 posed 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 six- 
 teen. 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. 
 
 Approved,. October 22, 1914. 
 
 When the Act Takes Effect; When the Taxes Cease. 
 
 As the Act was approved October 22, 1914, it became generally 
 operative, in effect, at midnight of that day. This applied to th» 
 beer and wine taxes, §§ 1, 2. 
 
THE WAR REVENUE LAW. 125 
 
 The special taxes were imposed as on November 1, 1914. This 
 applies to all the occupation or license taxes, § 3. 
 
 The documtntary stamp taxes were levied as on December 1, 
 1914, § 5. 
 
 The merchandise stamp taxes attach to taxable articles on 
 November 21, 1914 (§ 21), though the general imposition section 
 (§5) and the general penalty section (§ 17) fix December 1, 
 1914. 
 
 All taxes imposed by this Act cease on December 31, 1915, 
 but taxes which accrue before that date may be enforced there- 
 ■after. Cf. notes under § 11. 
 
 A repeal does not extinguish a penalty or liability once in- 
 curred, and the law remains valid for enforcement. R. S. § 13; 
 (1888) U. S. v. Reisinger, 128 U. S. 398; (1910) Hertz v. Wood- 
 man, 218 U. S. 205; (1873) Stockdale v. Insurance Cos., 20 Wall. 
 323; (1874) Blake v. Natl. Banks, 23 Wall. 307, 3 Fed. Stat. 
 Annotated, 762. 
 
 As to enforcing a repealed tax, and as to whether a beneficial 
 interest in an estate is vested and taxable, see also (1904) 
 Land Title & Trust v. McCoach, 127 Fed. Rep. 381, 129 Fed. 
 Rep. 901; (1904) Phila. Trust v. McCoach, 127 Fed. Rep. 386, 
 135 Fed. Rep. 866, 129 Fed. Rep. 906, affirmed (1906) 203 U. S. 
 594, no opinion; (1904) Brown v. Kinney, 128 Fed. Rep. 310; 
 (1904) Peck V. Kinney, 128 Fed. Rep. 313; (1905) Eidman v. 
 Tilghman, 136 Fed. Rep. 141, affirmed (1906) by divided court, 
 203 U. S. 580, no opinion. 
 
 The proviso in § 24, as to fermented liquors, was necessary 
 l>ecause of the form of language used in § 1. Instead of im- 
 posing an additional tax as such, or merely changing the rate, 
 It imposes the increased tax in lieu of the former tax. The pur- 
 pose of the proviso is, therefore, to insure the automatic restora- 
 tion of the former tax on January 1, 1916. 
 
 Although the Act was planned as an emergency measure, and 
 was in good faith passed as such in the hope that the taxes 
 would not longer be required, it was latterly distinctly intimated 
 in Congress that the time limitation might have to be removed 
 or advanced. It is likely that, if more revenue is needed, it may 
 be sought by further increasing the beer tax, and by adding taxes 
 on rectified spirits and automobiles or gasoline. AH these things 
 ■were in contemplation and under discussion while the present 
 
126 THE WAR REVENUE LAW. 
 
 measure was in preparation. Tobacco products, proprietary 
 medicines, bank checks, deposit slips, bills of exchange, leases 
 and mortgages are also among the probable objects. 
 
 Ontlying and Insular Possessions. 
 
 Revised Statutes, § 3448, applies the existing laws to spirits, 
 liquors, tobacco, snuff and cigars, produced anywhere within the 
 exterior boundaries of the United States whether or not within 
 a revenue district. 
 
 Alaska was made part of the Oregon district in 1872. 
 
 Indian lands are included, despite treaties. (1883) U. S. v. 
 43 Gals. Whisky, 108 U. S. 491. 
 
 The U. S. internal revenue system as a whole, does not apply 
 to Porto Rico. Under the Foraker Act, April 12, 1900, c. 191 
 (31 Stat. 77), each country receiving goods from the other col- 
 lected its own internal revenue on shipment from each to the 
 other in lieu of tariff dues. (1913) Jordan v. Roche, 228 U. S. 436. 
 
 The Foraker Act was held constitutional. (1900) Downes v. 
 Bidwell, 182 U. S. 244, in imposing duties on imports, as the 
 island was not a part of the U. S. for revenue purposes. 
 
 Porto Rico has her own system of excise, for her own benefit 
 in lieu of the internal revenue system of the U. S. A general 
 revenue bill was enacted by the insular legislature, approved 
 January 31, 1901, i^iposing taxes on spirits, tobacco, cards, medi- 
 cinal preparations, oleomargarine, arms and ammunition, 
 matches, liquor dealers and certain documentary stamp taxes. 
 Dr. Jacob H. Hollander, Excise Taxation in Porto Rico, in the 
 Quarterly Journal of Economics, February, 1902. 
 
 Section 14 of the Foraker Act makes U. S. laws effective in 
 Porto Rico, " except the internal revenue laws, which, in view 
 of the provisions of section three, shall not have force and 
 effect in Porto Rico." T. D. 216, Sept. 25, 1900. 
 
 Section three of the same Act Imposes on P. R. goods cominR 
 into U. S. the same internal revenue taxes as are imposed by 
 law on domestic goods. 
 
 Porto Rico cigars brought to the U. S. require the same stamps 
 here as domestic cigars. Circulars 54 and 56, April, 1900; 81, 
 July, 1901; 85, Aug., 1901. 
 
THE WAR REVENUE LAW. 127 
 
 As to bay rum brought from P. R. (1908) Newhall v. Jordan, 
 160 Fed. Rep. 661, following Cheseborough v. U. S., 192 U. S. 253,^ 
 that a tax paid by mistake cannot be recovered. S. c. (1906) 
 149 Fed. Rep. 586; (1908) Anderson v. Newhall, 161 Fed. Rep. 
 906; (1913) Jordan v. Roche, supra. See Act of Feby. 4, 1909, ch. 
 65; T. D. 1462, 1481; circular No. 734. 
 
 There is a deputy U. S. collector at San Juan. Act of June 
 29, 1906; T. D. 1031; circular No. 679. See Tariff Act of 1913, 
 c. 16, Oct. 3, § 4, subd. D. 
 
 Porto Rico is now American territory de facto and de jure. 
 (1907) Ponce v. R. C. Church, 210 U. S. 296. 
 
 The Treasury Department has issued circulars, e. g., Nos. 
 57, 59, 606, 693. 
 
 The internal revenue laws of the Island are found in chs. 2, 
 3 of Tit. IX of the Political Code, §§ 3024-3090 of Revised States 
 of Porto Rico, 1911. 
 
 Under the organic Act of April 30, 1900, ch. 339; 31 Stat. 141, 
 the Territory of Hawaii was made a revenue district. From the 
 annexation (July, 1898) to June 14, 1900, when the organic Act 
 took effect, Hawaii was, as to commercial relations, deemed 
 foreign territory. After June 14, 1900, goods taxable for internal 
 revenue in this country could not be sent to Hawaii without pay- 
 ing this tax. T. D. 120, May 5, 1900; 125, May 12, 1900; 157, 
 June 14, 1900. (1857) Simpson v. Peaslee, 20 How. 571, was 
 cited to support the ruling that the date of the sailing of the 
 ship would determine whether a consignment was taxable. 
 (1904) The Kawailani, 128 Fed. Rep. 879. 
 
 Philippines. 
 
 From the ratification of peace, April 11, 1899, to November, 
 
 1901, the islands were commercially treated as foreign, though 
 certain taxable articles might be bonded for consumption there. 
 The Supreme Court decided that they were not foreign after their 
 cession, and they thus acquired a status like Porto Rico's. (1901) 
 Pepke V. U. S., cited also as 14 Diamond Rings, 183 U. S. 176. 
 
 A temporary civil government was established pursuant to 
 the Act of March 2, 1901, 31 Stat. 910, and the Act of July 1, 
 
 1902, 32 Stat. 691, which exempted certain exports to the P. I. 
 and allowed rebates or drawbacks as on exports to strictly 
 foreign countries. 
 
128 THE WAR REVENUE LAW. 
 
 Taxable matsrials were exempted for export by the Act of 
 March 8, 1902, 32 Stat. 54. 
 
 The Philippine Commission enacted The Internal Revenue Law 
 of 1904 (July 2) for the islands. They have their own bureau 
 and a complete administrative machinery for the enforcement 
 of an elaborate law covering license taxes, alcohol, tobacco, 
 banking, documentary stamp taxes, capitation tax, insurance, 
 forestry, mining, business, manufacture and occupation. In- 
 ternal taxation in the Philippines. By John S. Ford, Baltimore, 
 1907, Johns Hopkins University Studies, Series XXV, No. 1. 
 
 The U. S. Congress ratifies the acts of the Commission. See 
 Act of Feb. 9, 1909, c. 101. 
 
 The Act of Aug. 5, 1909, 36 Stat. 83, equalized duties ; exempted 
 from the P. I. internal revenue laws taxable articles for export 
 to the U. S. (where they pay a revenue tax in lieu of customs; 
 exempted from U. S. internal revenue laws taxable articles for 
 export to the Islands (where they pay a revenue tax), and pro- 
 vided that all internal revenue collected in or for account of the 
 islands should go intact to the insular treasury for. the general 
 government of the Philippines. 
 
 The Tariff Act of 1913, Act of Oct. 3, c. IC, re-embodies a like 
 system. 
 
 The Treasury Department has issued rulings and instructions, 
 circulars No. 39, July 1, 1910; No. 57, Nov. 1, 1909; No. 37, Aug. 
 10, 1909; No. 8, regulations revised to July 1, 1910. 
 
THE WAR REVENUE LAW. 129 
 
 BIBLIOGRAPHICAL NOTES. 
 
 These are, of course, only suggestive, and do not 
 purport to be exhaustive. 
 
 Acts of Congress. It is not enough, to examine the Revised 
 Statutes, even with amendments. Reference must be had to 
 the Statutes at Large. 
 
 Compilations of Statutes. Such have been issued by the De- 
 partment from time to time. For older laws it is necessary to 
 examine older editions. The volume constitutes an Internal 
 Revenue Manual, for the use of officers and agents. The latest 
 official compilation was issued in 1911 under the title Internal 
 Revenue Laws, Compiled. As the Act of 1914 is intended to be 
 temporary, it may not be embodied as a whole in any such per- 
 manent general compilation. 
 
 Myer's Federal Decisions. Tit. Internal Revenue. 
 
 Morgan's Digest of Tariff and Customs Laws. 
 
 Internal Kevenne Eecord. An unofficial ^publication, begun In 
 1865 and discontinued after December, 1897. This is often re- 
 ferred to as though authoritative, and some things In it are not 
 found elsewhere. The annotations ante, discuss the value of 
 such department rulings as are herein reported. 
 
 Treasury Decisions, published weekly. Since January 1, 1898, 
 these have embraced the internal revenue rulings and circulars. 
 The pertinent decisions are usually republished by the Commis- 
 sioner in his circulars. The whole series is grouped in volumes. 
 
 Opinions of Attorney-General. These are serially issued and 
 later grouped in volumes. Those which are pertinent are re- 
 published in the Commissioner's circulars. 
 
 Coxe, History of the Internal Revenue System, 1796. 
 
130 THE WAK REVENUE LAW. 
 
 Edwards, Charles. Practical Treatise of the Stamp Act of July 
 1, 1862 (399 pp., N. Y., 1863). Intended to assist the initiation 
 of the Civil War taxes, by citing English precedents, drawing 
 chiefly from Collins and from Tilsley. 
 
 Boutwell, Geo. S. The Commissioner, who organized the I. T. 
 department, published a manual of the Direct and Excise Tax 
 System, with regulations, rulings, etc., 4th ed., 1864. 
 
 Boutwell, Geo. S. The Taxpayers' Manual, an indexed com- 
 pilation of revenue laws. Boston, 1866. 
 
 Bedfleld, A. A. Handbook of the U. S. Tax Law of 1862-63. 
 
 Dresser, Horace. The Internal Revenue Laws as amended to 
 July, 1866, with marginal references, index and table of taxes 
 and exemptions. A compilation. N. Y., 1866. Later, 1870, 1872. 
 
 Emerson, Chas. N. New Internal Revenue Guide to the Act 
 of July, 1868; in Handbook of the Internal Revenue. 1868. 
 
 Bnmp, Orlando F, Internal Revenue Statutes, with notes of 
 decisions, rulings, etc. Pp. 430, N. Y., 1870. A serious attempt 
 to bring together all valuable and suggestive administrative pre- 
 cedents. 
 
 Bavidge and Kimball. Compendium of Internal Revenue Laws, 
 with decisions, forma, etc. Wash., D. C, 1871. 
 
 Collection of Circtilars and Specials, issued by the Office of 
 Internal Revenue to January 1, 1871 (334 pp.), contains num- 
 bered circulars, general and special, and also unnumbered cir- 
 culars arranged chronologically. This service was continued 
 after the Act of 1898. Cf. Treas. Dec, su-pra. 
 
 Parsons on Contracts. The 5th edition, vol. 3, pp. 286-349, 
 ch. 10, pt. 2, treated fully of the law of stamps in its application 
 to instruments. Other editions do not contain this matter. 
 
 Hilliard's Law of Taxation.. Boston, 1875. 
 
 Burroughs' Treatise on the Law of Taxation. N. Y., 1877. 
 
 Elmes, Webster, The Executive Departments. Wash., D. C, 
 1879. 
 
THE WAR REVENUE LAW. 131 
 
 Cferard's Titles to Keal Estate. Ch. VII. 
 
 Eldridge, C. W. The V. S. Internal Revenue Tax System, 1895. 
 
 Howe's Taxation and Taxes in tlie U. S., under the Internal 
 Revenue System, 1791-1895. 1896. 
 
 Tlie War Bevenue Law of 1898. Annotated hy Heydecker and 
 McMahon, Albany, 1898. 
 
 War Bevenue Law of 1898. Explained by Gould and Savary» 
 Boston, 1898. 
 
 Asli's Annotated Internal Bevenue Laws. 1899. 
 
 Gould and Tucker's Federal Income Tax. 1894. 
 
 Frost's Federal Income Tax. 1913. An exhaustive and prac- 
 tical work on the Income Tax Law. Every section of the law 
 has received careful treatment. Attention is called therein not 
 only to decisions of the courts having a bearing upon the in- 
 terpretation of the Act, but in addition references are made to 
 rulings of the Treasury Department rendered in connection with 
 previous Income Tax Acts, together with reference to the opin- 
 ions of the attorneys general of the United States, and to deci- 
 sions of the English courts upon existing provisions of the Eng- 
 lish Income Tax Laws which are similar or closely analagous 
 to the Federal Income Tax Law of 1913. 
 
 Frost's Federal Corporation Tax. 1911. An exhaustive work 
 on the Federal Corporation Tax Law. Among the many topics 
 treated are the following: Nature of the Federal Corporation 
 Tax Enactment; Full Text of the Decision of the U. S. Supreme 
 Court sustaining the constitutionality of the Act; a Discussion 
 of the Rules of construction and interpretation, showing Scope 
 and Intent of Act; Tax Returns fully discussed in a chapter; 
 Fundamental basis on which the tax is laid, correction and re- 
 vision of returns; Mode of Assessment and Collection of the 
 Tax, together with an extended consideration of the subject 
 matter of court procedure. 
 
 It also gives the following: Full text of the Act; Treasury 
 regulations relating to the Collection of the Tax; Opinions of 
 the Attorney-General relative thereto; Forms of returns; Sec-- 
 
132 THE WAR REVENUE LAW. 
 
 tlons of the U. S. Revised Statutes applicable to the collection 
 and payment of the Federal Corporation Tax. 
 
 Foster's Federal Income Tax. 1913. 
 
 Cooley on Taxation, 3d ed. 1913, eh. .XIV. 
 
 Seligman's Essays on Taxation. 
 
 Judson, Frd'k If. The Power of Taxation, State and Federal. 
 St. Louis, 1903. 
 
 Books on Federal Practice. 
 
 -State Conrt Digests and Reports, espec. on License Taxes. 
 English : 
 
 Stamp Taxes are so old and so well established in England, 
 that the large body of British precedent is often of value, even 
 if only by way of analogy. 
 
 Stamp Acts. 55 Geo. Ill, c. 184; 7 & 8 Geo. IV, c. 55; 16 & 17 
 Vict. c. 51 (1853) ; 33 & 34 Vict. c. 97 (1870) ; 54 & 55 Vict. c. 39 
 <1891) ; and numerous amendments. 
 
 Copinger, W. A. Tables of Stamp Duties. London, 1878. 
 
 Collins, Geo. Wm. The Stamp Laws considered with a view 
 to their influence on the admission of deeds, etc. London, 1841. 
 
 Tilsley, Hugh. A Treatise on the Stamp Laws, etc. A stand- 
 ard work. London, 1847. 
 
 Dowell, Stephen. A History of Taxation and Taxes in Eng- 
 land from the earliest times to the present day. 4 vols. A 
 standard work. London, 1884. 
 
 Griffith, G. C. A Digest of the Stamp Duties. 
 
 Herand, J. A. A Digest of the Stamp Laws. London, 1801. 
 
 Piper's Stamp Lav«'s and Duties. A modern work. 
 
 Chltty's Law of Contracts. 15th ed. 1909, ch. vl, pp. 125-152, 
 on the stamping of contracts. 
 
THE WAR REVENUE LAW. 133 
 
 Dowell, Stepben. A History and Explanation ot the Stamp 
 Duties and the Stamp Laws at present In force in the United 
 Kingdom. London, 1873. Later ed. 
 
 Heron, D. C. History of Jurisprudence, sub. cap., Taxation. 
 London, 1860. 
 
 Edwards, Isaac. A Treatise on Bills, etc., ch. xiv on Stamps. 
 
 Byles on Bills of Exchange, ch. ix on the Stamp Law. 
 
 Cliitty's Statutes. Tit. Stamps. 
 
 Jarris on the Income Tax. 1912. With forms. 
 
 Dowell's Income Tax Laws, 7th ed. (Piper), 1913. 
 
 Highmore's Stamp Laws, 2d ed. London, 1902. 
 
 Alpe's Law of Stamp Duties. 
 
 Bnxton, Sydney. Finance and Politics. London, 1888. 
 
 PeriodicaJIs, legal and other, as e. g.. How we pay for the war. 
 Outlook, 59:19. 
 
 Tax collecting by U. S. Government. Natl. Mag, Boston, 
 24:365. 
 
 Taxation of Life Insurance. Indep. 64:383, Feb. 13, 1908. 
 
 Corporation Excise Tax. 40 Washington Law Reporter, 716, 
 Nov. 1, 1912. 
 
 Stamp Duties on voluntary transfers. 133 Law Times, 76, May 
 25, 1912. 
 
 Bills of Exchange, recent decisions. 28 Scot. Law Rev. 200, 
 Sept., 1912. 
 
 The Revenue Act 1911. 46 Irish Law Times 13, Jany. 20, 1912. 
 
 The Stamping of Receipts, Act of 1891. 43 Irish Law T. 47,. 
 Feb. 20, 1909. 
 
 Stamp Duty on Increase of Capital. 44 Law Journal (Eng- 
 land) 115, Feb. 20, 1909. 
 
 Local taxation license duties. 72 Justice of the Peace (Lon- 
 don) 350, July 25, 1908. 
 
 Stamp Taxes on Newspapers, Academy (London) 58:309. 
 
 Etc., etc. 
 
SUMMARY TABLE OF TAXES. 
 
 Beer, ale, porter, on every barrel of 31 gals . . $1 . 50 
 Wines, domestic and imported: 
 Still wines : 
 
 bottle, 14 pi^t or less . OOI4 
 
 bottle, 14 pint or less . 00% 
 
 bottle, 1 pint or less .01 
 
 bottle, 1 quart or less .02 
 
 other containers at the gallon rate of . . . .08 
 
 Sparkling wines and champagnes : 
 
 bottle, 14 pint or less .05 
 
 bottle, 1 pint or less .10 
 
 bottle, 1 quart or less .20 
 
 other containers, at the quart rate of ... . .20 
 
 Liqueurs, cordials, etc. : 
 
 bottle, % pint or less . 01% 
 
 bottle, 1 pint or less .03 
 
 bottle, 1 quart or less .06 
 
 other containers, at gallon rate of .24 
 
 Grape brandy or wine spirits, used only for 
 fortifying sweet wines under strict regula- 
 tions, per gallon .55 
 
 Special, occupation or license taxes, annual: 
 banker, on each $1,000 capital, including 
 
 surplus and undivided profits 1 . 00 
 
 stock broker, etc 30.00 
 
 [135] 
 
136 SUMMARY TABLE OF TAXES. 
 
 pawnbroker $50 . 00 
 
 commercial broker 20 . 00 
 
 custom-house broker 10.00 
 
 theatre, etc., proprietor : 
 
 seating capacity not more than 250. .. . 25.00 
 
 seating capacity, 251 to 500 50.00 
 
 seating capacity, 501 to 800 75.00 
 
 seating capacity, 801 and up 100.00 
 
 circus, proprietor, in each State 100 . 00 
 
 Other shows, exhibitions, etc., proprietor or 
 agent, in each State: (Educational, agri- 
 cultural, etc., exempt) 10.00 
 
 Bowling and billiards, proprietor, for each 
 
 alley and each table 5.00 
 
 Commission merchant, except those paying 
 as commission broker and co-operative 
 houses 20 .00 
 
 Tobacco dealers : 
 
 leaf dealers up to 1,000 lbs., annually exempt 
 
 leaf dealers, 1,000 to 50,000 lbs. annually. . 6 .00 
 
 leaf dealers, 50,000 to 100,000 lbs. annually 12 . 00 
 leaf dealers, over 100,000 lbs. annually. . . 24.00 
 dealers genei^ally in any form of tobacco, 
 
 whose annual sales exceed $200 4. 80 
 
 Manufacturer selling ovm goods at factory is 
 not a dealer. 
 
 Tobacco manufacturers: One tax for maker 
 of several kinds, 
 sales not exceeding 100,000 lbs annually. . 6.00 
 
 sales, 100,000-200,000 lbs. annually 12.00 
 
 sales, 200,000-400,000 lbs. annually 24.00 
 
SUMMARY TABLE OP TAXES. 137 
 
 sales, 400,000-1,000,000 lbs. annually $60.00 
 
 sales, 1,000,000-5,000,000 lbs. annually.. 300.00 
 sales, 5,000,000-10,000,000 lbs. annually . . 600 . 00 
 sales, 10,000,000-20,000,000 lbs. annually. 1,200.00 
 sales exceeding 20,000,000 lbs. annually. . 2,496.00 
 
 Cigar manuf acturers : 
 
 sales not exceeding 100,000 cigar annually. 3.00 
 sales, 100,000-200,000 cigars annually. . . 6.00 
 sales, 200,000-400,000 cigars annually. . . 12.00 
 salesj 400,000-1,000,000 cigars annually. . 30.00 
 sales, 1,000,000-5,000,000 cigars annually. 150.00 
 sales, 5,000,000-20,000,000 cigars annually 600 . 00 
 sales, 20,000,000-40,000,000 cigars an- 
 nually 1,200 . 00 
 
 sales, 40,000,000 and up 2,496.00 
 
 Cigarette manufacturers : 
 
 annual sales, not above 1,000,000 cigarettes 12 . 00 
 
 annual sales, 1,000,000-2,000,000 24.00 
 
 annual sales, 2,000,000-5,000,000 60 . 00 
 
 annual sales, 5,000,000-10,000,000 120 . 00 
 
 annual sales, 10,000,000-50,000,000 600 . 00 
 
 annual sales, 50,000,000-100,000,000 1,200.00 
 
 annual sales exceeding 100,000,000 2,496.00 
 
 STAMP TAXES. 
 
 Schedule A. Documentary: 
 
 bonds, stock certificates, etc., on each $100 
 
 face value .05 
 
 stock, every sale, transfer, delivery, etc., on 
 
 each $100 face value or less .02 
 
 sale of products on exchange or board, mem- 
 
138 SUMMARY TABLE OP TAXES. 
 
 orandum required, tax on each $100 of 
 value (immediate deliveries exempt) ... $0 . 01 
 promissory note and renewal, on each $100. .02 
 
 express and freight : Bill of lading required 
 
 when over five cents : For each shipment. . 01 
 
 telegraph and telephone: On each message 
 costing 15 cents or more, tax to be paid in 
 
 addition to the tariff .01 
 
 bond of indemnity ; any bond .50 
 
 certificate of profits, corporate, on each $100 . 02 
 
 certificate of damage and maritime .25 
 
 certificate, every other required by law .... .10 
 
 broker's note or memorandum of sale, any 
 
 kind 10 
 
 conveyance or deed, on value of the equity 
 
 of redemption, from $100 to $500 .50 
 
 each additional $500 or fraction .50 
 
 entry, custom house, for consumption or 
 warehousing : 
 
 not exceeding $100 of value .25 
 
 value, $100 to $500 .50 
 
 value exceeding $500 1 . 00 
 
 entry, customs bonded warehouse with- 
 drawal .50 
 
 insurance, except life, personal accident, 
 health, workmen's, and co-operative : 
 on every dollar of premium, original or 
 
 renewal . 00% 
 
 passage ticket sold in U. S. for abroad: 
 
 costing $10 or less exempt 
 
 costing $30 or less 1.00 
 
SUMMARY TABLE OF TAXES. 139 
 
 costing $30 to $60 $3 .00 
 
 costing more than $60 5.00 
 
 proxy for company meeting .10 
 
 power of attorney .25 
 
 protest .25 
 
 parlor car seat .01 
 
 sleeping car berth .01 
 
 Schedule B. Mercantile : 
 
 Perfumery, cosmetics, etc., see p. 106. 
 
 every package retailing at 5 cents or less . . . 00% 
 
 every package above 5 cents, not above 10 
 
 cents 00l^ 
 
 every package above 10 cents, not above 15 
 
 cents 003/8 
 
 every package above 15 cents, not above 25 
 
 cents 00%* 
 
 every package each additional 25 cents of 
 
 price -00% 
 
 chewing gum or substitutes: 
 
 every package not exceeding $1.00 retail 
 
 value .04 
 
 every package above $1.00 for each $1.00 
 
 or part .04 
 
TABLE OF CASES, 
 
TABLE OF CASES. 
 
 A. 
 
 Abraham v. Dubois, 4 Campb. 269 64 
 
 Abrast Realty v. Maxwell, 206 Fed. Rep. 333 46, 117 
 
 Adams v. Dale, 29 Ind. 273 49, 54 
 
 Adams Exp. Co. v. N. Y., 232 U. S. 14 25 
 
 Agnew V. Haynes, 141 Fed. Rep. 631 115 
 
 Aiken v. Blaisdell, 41 Vt. 655 25 
 
 Ambrosini v. U. S., 187 U. S. 1 97 
 
 American Exp. v. Mich., 177 U. S. 404 93, 94 
 
 Americ. Sugar Ref . Co. v. La., 179 U. S. 89 23 
 
 Amer. Twine Co. v. Worthlngton, 141 U. S. 468 122 
 
 Amos-Richia Co. v. N. W. Mut. L., 143 Mich. 684 66 
 
 Anderson v. 42 Broadway, 213 Fed. Rep. 777 xxvi 
 
 Anderson v. Newhall, 161 Fed. Rep. 906 127 
 
 Armour Packg. Co. v. Lacy, 200 U. S. 226 23 
 
 Armstrong v. Toler, 11 Wheat. 258 115 
 
 Ashling V. Boon, 1 Ch. 568. 56 
 
 Atlantic, etc., Co. v. Savannah, 133 Ga. 66 45 
 
 B. 
 
 Bailey v. Clark, 21 Wall. 284, 12 Blatchf. 156 27 
 
 Baker v. Baker, 6 Lansing, 509 63 
 
 Ballard v. Burnside, 49 Barb. 102 47, 54, 93 
 
 Barbour v. Gates, 43 N. Y. 40 66 
 
 Barney v. Ivins, 22 Iowa, 163 101 
 
 Bates V. Mobile, 46 Ala. 158 26 
 
 Bathe v. Taylor, 15 East. 412 47 
 
 Bayly v. McKnight, 19 La. Ann. 321 47 
 
 Becker, In re, 21 I. R. R. 243; Fed. Cas. 1208 112 
 
 Beckwith v. Bonner, 6 Carrington & P. 681 56 
 
 [143] 
 
144 TABLE OF CASES. 
 
 (References are to Pages.) 
 
 Beebe v. Hutton, 47 Barb. 187 65 
 
 Bennison v. Jewison, 12 Jur. 485 64 
 
 Benziger v. U. S. 192 U. S. 38 122 
 
 Bettman v. Warwick, 108 Fed. Rep. 46 123 
 
 Black V. 6th Ave. R. R., 1 Daly, 536 109 
 
 Blackford v. State, 8 Heisk. 538 35 
 
 Blacklock v. U. S., 208 U. S. 75 113 
 
 Blake v. Natl. Banks, 23 Wall. 307 125 
 
 Blunt V. Bates, 40 Ala. 470 55 
 
 Boske V. Comingore, 177 U. S. 459 xiv 
 
 Bowker v. Goodwin, 7 Nev. 135 47 
 
 Boyd V. Hood, 57 Pa. 98 47, 122 
 
 Boyd V. U. S., 116 U. S. 617 112 
 
 Bradley v. Ricbmond, 227 U. S. 477 25 
 
 Braun v. Chicago, 110 111. 186 35 
 
 Ex rel. Brewing Co. v. Fromme, 35 App. Div. 459 66, 68 
 
 British India Co. v. Com'rs Int. Rev., 7 Q. B. D. 165 90 
 
 Brown v. Goodwin, 75 N. Y. 409 114 
 
 Brown v. Kinney, 128 Fed. Rep. 310 125 
 
 Brown v. Watts, 1 Taunt. 353 62 
 
 Browne v. Bennett, 24 La. Ann. 618 54 
 
 Browning v. Waycross, U. S. S. C. Oct. 1913 24 
 
 Bryan v. 1st Nat. Bk., 205 Pa. 7 56, 66 
 
 Buckalew v. U. S., 102 Fed. Rep. 320 102 
 
 Buckley v. Hamason, 50 Minn. 195 25 
 
 Buffington v. Day, 11 Wall. 113 66 
 
 Burrough v. Abel, 105 Fed. Rep. 366 118 
 
 c. 
 
 Cabbott V. Radford, 17 Minn. 320 56 
 
 Campau v. Lewis, 3 Wall. 106 47 
 
 Campbell v. U. S., 107 U. S. 407 xiv, 110 
 
 Campbell v. Wilcox, 10 Wall. 421 62 
 
 Cardell v. Bridge, 9 Allen, 355 98 
 
 Cardinal v. Smith, Deady, 197 xiv, 78 
 
 Cargill Co. v. Minn., 180 U. S. 452 23 
 
 Carpenter v. Johnson, 1 Nev. 331 65 
 
TABLE OF CASES. I4.5 
 
 (References are to Pages.) 
 
 Carroll v. Mayor, 12 Ala. 173 24 
 
 Cassldy v. St. Germain, 22 R. I. 53- •, 66 
 
 Cedar Rapids Co. v. Stewart, 25 Iowa, 115 54 
 
 Celley v. Gray, 37 Vt. 136 122 
 
 Cent. Trust v. C. H. V. & T., 92 Fed. Rep. 919 100 
 
 Central Trust v. Treat, 171 Fed. Rep. 301, 185 Id. 760 28 
 
 In re Chadwick, 1 Lowell, 439 28, 112 
 
 Chartiers Co. v. McNamara, 72 Pa. 278 65 
 
 Cheatham v. U. S., 92 U. S. 85 118 
 
 Chervet v. Jones, 6 Mad. 267 56 
 
 Cheseborough v. U. S., 192 U. S. 253 117, 119, 127 
 
 Chic. Wil. & St. P. V. U. S., 127 U. S. 406 120 
 
 Christie-Street Co. v. U. S., 129 Fed. Rep. 506 xiv, 115, 118 
 
 Citizens' Teleph. v. Fuller, 229 U. S. 322 25 
 
 Ex parte City, re Knox, 64 Ala. 463 24 
 
 City of Topeka v. Jones, 74 Kan. 164 95 
 
 Clark V. Bailey, 12 Blatchf. 156, 21 Wall. 284 28 
 
 Clark V. Gilbert, 5 Blatchf. 330 30 
 
 Clemens v. Conrad, 19 Mich. 170 66 
 
 Cliquot's Champagne, 3 Wall. 114 120 
 
 Ex rel. Cohn v. Miller, 180 N. Y. 16 90 
 
 Collins V. N. H., 171 U. S. 30 xxv 
 
 Com'rs Louisville v. Buckner, 48 Fed. Rep. 533 118 
 
 Commonwealth v. Cusick, 120 Mass. 183 121 
 
 Commonwealth v. Holbrook, 10 Allen, 200 24 
 
 Commonwealth v. Sloan, 4 Cush. 52 116 
 
 Cook V. Marshall County, 196 U. S. 261 23 
 
 Cooke V. England, 27 Md. 14 66 
 
 Coopersville Co. v. Lemon, 163 Fed. Rep. 145 xxv, 116 
 
 CoppernoU v. Ketcham, 56 Barb. Ill 63 
 
 Coppock V. Bower, 4 M. & W. 36 56 
 
 Corbin v. Tracy, 34 Conn. 325 65 
 
 Cornell v. Coyne, 192 U. S. 418 xxv 
 
 Corporation Tax Cases, 200 U. S. 107 xxvl 
 
 Corrie v. Blllin, 23 La. Ann. 250 61 
 
 Craft V. Schafer, 153 Fed. Rep. 175 119 
 
 Crawford v. Hubbell, 89 Fed. Rep. 961, 177 U. S. 419 94 
 
 Crocker v. Foley, 13 Allen, 376 47 
 
 Cuzner v. Calif. Club, 155 Cal. 303 45 
 
146 TABLE dP CASES. 
 
 (References are to Pages.) 
 
 D. 
 
 Davis V. Daugherty, 105 Fed. Rep. 769 3 
 
 Davis V. Richardson, 45 Miss. 499 66 
 
 Davis V. Williams, 13 Bast. 232 47 
 
 Day V. Barker, 36 Mo. 125 65 
 
 De Bary v. Dunne, 172 Fed. Rep. 940 26, 32, 120 
 
 De Bary v. Souer, 101 Fed. Rep. 425 23 
 
 Delorme v. Ferli, 24 Wis. 201 70, 101 
 
 Desmond v. Norris, 10 Allen, 250 54 
 
 Dinsmore v. South. Exp., 92 Fed. Rep. 714; 102 id. 794; 183 
 
 U. S. 115 94 
 
 Doe V. Amos, 2 M. & R. 180 122, 123 
 
 Doffln V. Guyer, 33 Ind. 215 54 
 
 Doll V. Evans, 15 Int. R. R. 143 114 
 
 Dollar Sav. Bk. v. U. S., 19 Wall. 227 28, 121 
 
 Dorris v. Grace, 24 Ark. 326 65 
 
 Dougherty v. U. S. 181 U. S. 622 123 
 
 Dowell V. Applegate, 7 Fed. Rep. 881 54 
 
 Downes v. Bidwell, 182 U. S. 244 125 
 
 E. 
 
 Eagle V. No-wlin, 94 Fed. Rep. 646 116 
 
 Easterbrook v. Heb. L. Orph. Soc, 85 Conn. 289 45 
 
 Eidman v. Martinez, 184 U. S. 578 xxvl, 120 
 
 Eidman v. Tilghman, 136 Fed. Rep. 141 125 
 
 Eldredge v. Ward, 155 Fed. Rep. 253, 174 Id. 402 91 
 
 Eliot V. Freeman, 220 U. S. 178, 55 L. Ed. 424 xxvl 
 
 Ellis V. State, 5 Ga. App. 615 45 
 
 Emery v. Hobson, 63 Me. 33 63 
 
 Fairbank v. U. S., 181 U. S. 283 xiii, 95, 118, 121 
 
 Farmers' L. & T. v. Council Bluffs Co., 90 Fed. Rep. 806 100 
 
 Farmers' L. & T. v. Treat, 171 Fed. Rep. 302, 185 id. 760 28 
 
 Felton V. U. s!, 96 U. S. 699 116 
 
TABLE OF CASES. 147 
 
 (References are to Pages.) 
 
 Fish V. Cottenet, 44 N. Y. 538 62 
 
 Fisher v. Leslie, 1 Esp. 426 93 
 
 Flaherty v. Hanson, 215 U. S. 515 25 
 
 Fleshman v. McClain, 105 Fed. Rep. 610, 106 id. 880 91, 99, 116 
 
 Flint V. Stone Tracy Co., 220 U. S. 107 46, xxvi, 123 
 
 Foster v. Holley's Admin., 49 Ala. 593 54 
 
 14 Diamond Rings v. U. S., 183 U. S. 176 127 
 
 Freeman v. U. S., 157 Fed. Rep. 195 119 
 
 Frink v. Thompson, 4 Lansing, 489 63 
 
 G. 
 
 Garland v. Lane, 46 N. H. 245 56 
 
 Germ. Sav. Bk. v. Archbold, 15 Blatch. 398 77, 114 
 
 Govern v. Littlefield, 13 Allen, 127 63 
 
 In re Grace, 75 Fed. Rep. 2 109 
 
 Grace v. Collector, 79 Fed. Rep. 315 109 
 
 Granby Mercantile Co. v. Webster, 98 Fed. Rep. 604 48 
 
 Grand v. Cox, 24 La. Ann. 462 62 
 
 Gray v. W. U. T. Co., 85 Mo. App. 123 95 
 
 Green v. Holway, 101 Mass. 243 62, 66 
 
 Green v. Lowry, 38 Ga. 548 56 
 
 Gregory v. Fraser, 3 Camp. 454 56 
 
 Gundling v. Chicago, 177 U. S. 183 25 
 
 Gunter v. Lecky, 30 Ala. 591 24 
 
 Gurr V. Scudds, 11 Exch. R. (H. & G.) 190 122, 123 
 
 H. 
 
 Haight & F. v. McCoach, 135 Fed. Rep. 894 119 
 
 Hall V. Bishop, 3 Daly, 109 25 
 
 Hall V. Jordan, 19 Wall. 271 100 
 
 Halock V. Jaudin, 34 Cal. 167 56, 63 
 
 Hammond Packing Co. v. Montana, 233 U. S. 331 xxiv 
 
 Harper v. Clark, 17 Ohio St. 190 63 
 
 Hartranft v. Wiegmann, 121 U. S. 609 122, 123 
 
 Hatch V. Reardon, 110 App. Div. 821; 184 N. Y. 431; 204 
 
 U. S. 152 90 
 
148 TABLE OF CASES. 
 
 (References are to Pages.) 
 
 Haymes v. Brown, 132 Fed. Rep. 525 115 
 
 Head Money Cases, 112 U. S. 580 xxvii 
 
 Herold v. Kahn, 159 Fed. Rep. 608 117 
 
 Herrick v. Mq,lin, 22 Wend. 388 47 
 
 Hertz V. Woodman, 218 U. S. 205 xxvi, 125 
 
 High V. Coyne, 93 Fed. Rep. 450; 178 U. S. Ill xxvi 
 
 Hirsh v. Commonwealth, 21 Gratt. 785 xiv 
 
 Hitchcock V. Sawyer, 39 Vt. 412 63 
 
 Holman v. Johnson, 1 Cowper, 341 47 
 
 Holt V. Green, 73 Pa. 200 25 
 
 Holyoke Co. v. Franklin Co., 97 Mass. 150 63 
 
 Hooper v. Calif., 155 U. S. 648 23 
 
 Hoops V. Atkins, 41 Ga. 109 93 
 
 Hoppock V. Plato, 30 How. Pr. 120 68 
 
 Howe V. Carpenter, 53 Barb. 382 63 
 
 Hugus V. Strickler, 19 Iowa, 413 121, 122 
 
 In re Huttman, 70 Fed. Rep. 699 xiv 
 
 I. 
 
 Income Tax Cases, 157 U. S. 429; 158 id. 601 xxvi, xxviii, 123 
 
 J. 
 
 Jackson v. Hough, 38 W. Va. 237 30, 33 
 
 Jacquin v. Warren, 90 111. 459 62, 93 
 
 James v. Appel, 192 U. S. 129 121 
 
 James v. Blauvelt, Fed. Cas. 7180 101 
 
 James v. Catherwood, 3 Bowling & R. 190 47 
 
 James v. Hicks, 110 U. S. 272 117 
 
 Johnson v. Herold, 161 Fed. Rep. 593 117 
 
 Jones V. Jones, 38 Cal. 584 93 
 
 Jordan v. Roche, 228 U. S. 436 125 
 
 E. 
 
 Kaufman v. U. S., 113 Fed. Rep. 919 53 
 
 Kawallanl, The, 128 Fed. Rep. 879 127 
 
TABLE OF CASES. 149 
 
 (References are to Pages.) 
 
 Kershaw v. Cox, 3 Bsp. N. P. C. 246 47 
 
 Kings Co. Sav. Inst. v. Blair, 116 U. S. 200 118 
 
 In re Kinney, 102 Fed. Rep. 468 28, 112 
 
 Kirk V. W. U. T. Co., 90 Fed. Rep. 809 95 
 
 Klock Produce Co. v. Hartson, 212 Fed. Rep. 758 118 
 
 Knill V. Williams, 10 East. 431 47 
 
 Knowlton v. Moore, 178 U. S. 41 xxvi 
 
 Re Knox, ex parte City, 64 Ala. 463 24 
 
 Knox V. Rossi, 25 Nev. 96 66 
 
 Knox V. Hindepoper, 21 Wis. 527 65 
 
 In re Kollock, 165 U. S. 526 rlT 
 
 Kreiss v. Seligman, 8 Barb. 439 115 
 
 L. 
 
 Laird v. State, 61 Md. 309 93 
 
 In re Lamberton, 124 Fed. Rep. 446 xiv 
 
 Landram v. U. S., 16 Ct. Cls. 74 28 
 
 Land Title & T. v. McCoach, 127 Fed. Rep. 386 125 
 
 Larned v. Andrews, 106 Mass. 435 25 
 
 Latham v. Smith, 45 111. 29 66 
 
 Lawrence v. Seyburn, 202 Fed. Rep. 913 xxv 
 
 Leather Mfrs. Bk. v. Treat, 116 Fed. Rep. 774; 128 id. 262.. 28 
 
 Ledbetter v. U. S., 170 U. S. 610 26 
 
 Lees T. U. S., 150 U. S. 476 114 
 
 Lewis V. Campau, 3 Wall. 106 101 
 
 License Tax Cases, 5 Wall. 462 23, 24, 123 
 
 Linton v. Natl. L. I. Co., 104 Fed. Rep. 584 104 
 
 In re Lippmann, 3 Ben. 95 28, 29 
 
 Ludlow V. Van Rensselaer, 1 Johns. R. 96 47 
 
 M. 
 
 McAfferty v. Hale, 24 Iowa, 355 61 
 
 McBride v. Doty, 23 Iowa, 122 62, 68 
 
 McClain v. Merchants, 112 Fed. Rep. 787; 115 id. 295 48 
 
 McClain v. Penna. etc., Co., 108 Fed. Rep. 618 xili, 121 
 
 McCoach V. Minehill, etc., Co., 228 U. S. 295 46, xxvi 
 
150 TABLE OF CASES. 
 
 (References are to Pages.) 
 
 McCray v. U. S., 195 U. S. 27; 49 L. Ed. 78 xxiv 
 
 McCulloch V. Md., 4 Wheaton, 316 xxvii 
 
 In re McDonough, 49 Fed. Rep. 362 3 
 
 JMcGuire v. Commonwealth, 3 Wall. 387 24 
 
 McLearn v. Skelton, 18 La. Ann. 514 47 
 
 McNally V. Field, 119 Fed. Rep. 445 xiil, 70, 96, 97, 122 
 
 Mansfield v. Excelsior R. Co., 135 U. S. 326 113 
 
 Marks v. U. S., 196 Fed. Rep. 476 xiv, xxiv 
 
 Mastin v. Mastin, 99 Fed. Rep. 435 101 
 
 Mechanics' Bk. v. Townsend, 5 Blatchf. 315 27 
 
 Mercer v. Mercer, 29 Iowa, 557 47, 56, 101 
 
 Jn re Mdse. Imported, Holt, 75 Fed. Rep. 998 109, 121 
 
 Mchts' Nat. Bk. v. U. S., 42 Ct. Cls. 6 27 
 
 Mchts' Warehouse v. McClain, 112 Fed. Rep. 787 48 
 
 Merck V. Treat, 202 Fed. Rep. 133 118 
 
 Merritt v. Cameron, 137 U. S. 542 xiil 
 
 Metropol. Exch. v. Gill, 199 Fed. Rep. 545 91 
 
 Miller v. Peo., 52 N. Y. 304 93 
 
 -Miner v. Fredonia, 27 N. Y. 155 26 
 
 Mobile, etc., R. Co. v. Edwards, 46 Ala. 267 61 
 
 -Moore v. Moore, 47 N. Y. 467 61, 66, 101 
 
 Moore v. Quick, 105 Mass. 49 66 
 
 Morley v. Hall, 2 Dowl. 494 122 
 
 Morris v. McMorris, 44 Miss. 441 63 
 
 Moxley v. Hertz, 216 U. S. 344 xxiv 
 
 Munic. Tel., etc., Co. v. Ward, 133 Fed. Rep. 70 91 
 
 Mutheson & Co. v. U. S., 71 Fed. Rep. 394 122 
 
 Myers v. Smith, 48 Barb. 614 49, 54, 61, 66 
 
 N. 
 
 Nat. Bk. Commerce v. Allen, 211 Fed. Rep. 743 xxvi 
 
 Nave V. King, 27 Md. 356 70 
 
 Newhall v. Jordan, 149 Fed. Rep. 586 ; 160 id. 661 127 
 
 ' New Haven, etc., Co. v. Quintard, 31 How. Pr. N. Y. 29.. 62, 
 
 63, 66, 122 
 
 New Orleans v. Metrop. Loan, 31 La. Ann. 310 29, 34 
 
 N. Y. & Cuba Mail v. U. S., 125 Fed. Rep. 320; 200 U. S. 
 488 95, 117 
 
TABLE OF CASES. 151 
 
 (References are to Pages.) 
 
 N. Y. Teleph. Co. v. Treat, 130 Fed. Rep. 340 96, 122 
 
 Nicol V. Ames, 89 Fed. Rep. 144; 173 U. S. 509 91, 123 
 
 Noble V. Citizens Bk., 63 Neb. 847 70, 98 
 
 Northrup v. Shook, 10 Blatchf. 243 33 
 
 0. 
 
 Ohio Tax Cases, 232 U. S. 576 25 
 
 Ohio V. Kendle, 8 O. N. P. N. S. 109 24 
 
 Oregon, etc., Trust v. Rathbun, 5 Sawyer, 32 28 
 
 Orford v. Cole, 2 Starkie, 351 47 
 
 Oulton V. Sav. Inst., 17 Wall. 118 27 
 
 Owen V. Thomas, 3 Mylne & K. 353 56, 63 
 
 Oxford Iron Co. v. Spradley, 51 Ala. 171 63 
 
 P. 
 
 Paclf Ins. Co. v. Soule, 7 Wall. 433 123 
 
 Park & Tilford v. U. S., 66 Fed. Rep. 731 109 
 
 Patterson v. Eames, 54 Me. 203 65 
 
 Patterson v. Gile, 1 Col. T. 200 54 
 
 Patten V. Brady, 184 U. S. 608 3, 43, 123, 124 
 
 Peck T. Kinney, 128 Fed. Rep. 313 125 
 
 Penn. Co. for Ins. v. McClain, 105 Fed. Rep. 367, 106 id. 618. . 118 
 
 Penna. Steel v. N. Y. City. Ry., 198 Fed. Rep. 774 xxvi 
 
 Peo. V. Fromme, 35 App. Div. N. Y. 459 66, 68 
 
 Peo. ex rel. Cohn v. Miller, 180 N. Y. 16 90 
 
 Pepke V. U. S., 183 U. S. 176 127 
 
 Pervear v. Commonwealth, 5 Wall. 475 24 
 
 Phlla. Trust v. McCoach, 127 Fed. Rep. 126 125 
 
 Pierpont v. Johnson, 104 111. App. 27 66 
 
 Pilcher v. U. S., 113 Fed. Rep. 248 75 
 
 Plessinger v. Dupuy, 25 Ind. 419 65 
 
 Plumley v. Mass., 155 U. S. 461 24 
 
 Pollard V. Phoenix Ins. Co., 63 Miss. 244 25 
 
 Pollock V. Farmers' L. & T., 157 U. S. 429, 158 id. 601 xxvl 
 
 xxviii, 123 
 Ponce V. R. C. Church, 210 U. S. 296 127 
 
15a TABLE OP CASES. 
 
 (References are to Pages.) 
 
 Portland v. O'Neill, 1 Oreg. 218 24 
 
 Pounds V. U. S., 171 U. S. 35 75 
 
 Powell V. Penna., 127 U. S. 678 xxv 
 
 Powers V. Barney, 5 Blatch. 202 123 
 
 Prather v. Pritchard, 26 Ind. 65 70, 98 
 
 Prather v. Tulauf, 38 Ind. 155 56 
 
 Pugh V. McCormick, 14 Wall. 361 64, 93 
 
 PuUan V. Kinsinger, 2 Abb. U. S. 94 xiil 
 
 Q. 
 
 In re Quantity Spirits, 3 Ben. 552, Fed. Cas. 11495 116 
 
 R. 
 
 Real Est. Bk. v. U. S., 16 Ct. Cls. 335 117 
 
 Bx parte Reed, 100 U. S. 13 xiv 
 
 Reed v. Deere, 7 Barn. & C. 261 47 
 
 Rees V. Jackson, 64 Pa. 486 54 
 
 Rex V. Hawkeswood, 1 Leach Cro. Ca. 257 63 
 
 Rex V. Preston, 3 N. & M. 31 64 
 
 Rice & Co. V. U. S., 53 Fed. Rep. 910 122 
 
 Richards v. Frankum, 9 Carr. & P. 221 .93 
 
 Richmond v. Blake, 132 U. S. 592 i 27 
 
 Rippiner v. Wright, 2 B. & Aid. 479 62 
 
 Robards Tobacco Co. v. Franks, 103 Fed. Rep. 276, 112 id. 
 
 784 xii, 123 
 
 Robertson v. V. S., 220 U. S. 616 xxvi 
 
 Robbins v. Shelby Co., 120 U. S. 489 36 
 
 Roche V. Jordan, 175 Fed. Rep. 234, 228 U. S. 436 125 
 
 Rowe V. Bowman, 183 Mass. 488 62 
 
 Ruckman v. Bergholz, 37 N. J. L. 437 25 
 
 S. 
 
 Sackett v. McCaffrey, 131 Fed. Rep. 219 66, 70, 98 
 
 St. Louis V. Laughlin, 49 Mo. 559 ; 24 
 
 St. Paul, etc., Ry. Co. v. Phelps, 137 TJ. S. 528 xUi 
 
 Sarlls V. U. S., 152 V. S. 570 3 
 
TABLE OF CASES. 153 
 
 (References are to Pages.) 
 
 Sault Ste. Marie v. Internat. Transit, U. S. S. C. Oct. 1913 24 
 
 Sayles v. Davis, 22 Wis. 225 70 
 
 Schell's Extrs v. Fauche, 138 U. S. 562 xlii 
 
 Schermerhorn v. Burgess, 55 Barb. 422 61 
 
 Schollenberger v. Pa., 171 U. S. 1 xxv 
 
 Selden v. Equitable Trust, 94 U. S. 419 27, 28 
 
 Sesnon v. U. S., 182 Fed. Rep. 5T3, 220 U. S. 609 23, 120 
 
 Shelley v. U. S., 198 I'ed. Rep. 88 xxiv 
 
 Sheridan v. Allen, 153 Fed. Rep. 568 113 
 
 Sime V. Howard, 4 Nev. 473 101 
 
 Simmons v. State, 12 Mo. 268 24 
 
 Simpson v. Peaslee, 20 How. 571 127 
 
 Simpson v. Treat, 126 Fed. Rep. 1003 94, 99 
 
 Slack V. Tucker, 1 Holmes, 485, 23 "Wall. 321 34, 39 
 
 Small V. Slocumb, 112 Ga. 279 66 
 
 Smith V. Mawhood, 14 M. & W. 452 25 
 
 Smith V. Waters, 25 Ind. 397 121 
 
 Smythe v. Fiske, 23 Wall. 374 xiii, 120, 123 
 
 Snyder .v. Marks, 109 U. S. 189 xiii, 118 
 
 South Carolina v. U. S., 199 U. S. 437 71, 124 
 
 South. Exp. V. Rose Co., 124 Ga. 581 95 
 
 Southern Oil Co. v. Texas, 217 U. S. 114 23 
 
 Sperry v. Horr, 32 Iowa, 184 55 
 
 Spielman v. State. 27 Md. 520 26 
 
 Spooner v. Eifler, 1 Heisk. 633 66 
 
 Spreckles v. McClain, 109 Fed. Rep. 76, 113 id. 244... xlv, 113, 123 
 
 Springer v. U. S., 102 U. S. 586 xii, 123 
 
 Stanwood v. Green, 2 Abb. U. S. 184 29 
 
 State V. Delano, 54 Me. 501 24 
 
 State V. Duncan, 16 Lea, 75 33 
 
 State V. Field, 49 Mo. 270 35 
 
 State V. Garton, 32 Ind. 1 70, 
 
 State V. Hill, 30 Wis. 416 63, 93 
 
 State V. Johnson, 65 Me. 362 • 24 
 
 State V. Mott, 16 Minn. 472 93 
 
 State R. R. Tax Cases, 92 U. S. 575 xii 
 
 Steele v. Spencer, 1 Peters, 552 47 
 
 Stirneman v. Smith, 100 Fed. Rep. 600 70, 98 
 
 Stockdale v. Doswell, 16 Wall. 156 35 
 
 Stockdale v. Insur. Cos., 20 Wall. 323 125 
 
154 TABLE OF CASES. 
 
 (References are to Pages.) 
 
 In re Strouse, 1 Sawyer, 605 29 
 
 -Sulpho Batli Co. v. Allen, 66 Neb. 295 66 
 
 Swift Co. V. U. S., Ill U. S. 22 118 
 
 T. 
 
 Taylor v. Duncan, 33 Tex. 440 54 
 
 Taylor t. U. S,. 3 How. U. S. 197 120 
 
 Teagarden v. Garver, 24 Ind. 399 49 
 
 Tedrick v. Hiner, 16 111. 189 25 
 
 The Kawailani, 128 Fed. Rep. 879 127 
 
 Thomas v. Texas, 40 Tex. Crim. App. 279 47, 66, 93 
 
 Thomas v. U. S., 192 U. S. 363, 115 Fed. Rep. 207 90, 123 
 
 Tobey v. Chlpman, 95 Mass. 123 56, 65 
 
 Tolman v. Treat, 106 Fed. Rep. 679, 113 id. 892 104 
 
 Tomlin v. Woods, 125 Iowa, 367 66 
 
 Topeka v. Jones, 74 Kan. 164 95 
 
 Treat v. Tolman, 106 Fed. Rep. 679, 113 id. 892 104 
 
 Tripp V. Bishop, 56 Pa. 424 56 
 
 Trull V. Moulton, 12 Allen, 396 56 
 
 u. 
 
 Union, etc., Assn. v. Neill, 31 Iowa, 95 54 
 
 U. S. V. Abbott, 9 Int. R. R. 186 72 
 
 U. S. V. Adams Exp., 119 Fed. Rep. 240 26 
 
 U. S. V. Allen, 14 Fed. Rep. 263 114 
 
 U. S. V. American Tobacco, 166 U. S. 468 119 
 
 U. S. V. Bank of Montreal, 21 Fed. Rep. 236 27 
 
 U. S. V. Barnes, 222 U. S. 513 121 
 
 U. S. V. Bedgood, 49 Fed. Rep. 54 113 
 
 U. S. V. Black, 11 Blatchf. U. S. 543, 128 U. S. 40 xiii 
 
 TJ. S. V. Breed, 24 Fed. Cas. 1222, No. 14638 120 
 
 TJ. S. V. Brown, 119 Fed. Rep. 482 53, 54 
 
 U. S. V. Brown, Deady, 566 109 
 
 U. S. V. Buzzo, 18 "Wall. 125 63, 116 
 
 U. S. V. Chamberlain, 219 U. S. 250 60, 111, 115 
 
 TJ. S. V. Chevallier, 102 Fed. Rep. 107 id. 434 26, 32 
 
 TJ. S. V. Chouteau, 102 U. S. 603 114 
 
 TJ. S. V. Clawson 119 Fed. Rep. 994 91 
 
TABLE OF CASES. 155 
 
 (References are to Pages.) 
 
 U. S. V. Cole, 134 Fed. Rep. 697 xiil, 115, 120 
 
 U. S. V. Craft, 43 Fed. Rep. 374 114 
 
 U. S. V. Cutting. 3 Wall. 441 30 
 
 U. S. V. Davis, 37 Fed. Rep. 468 26 
 
 U. S. V. Devlin, 6 Blatclif. 71 115 
 
 U. S. V. Don Kee, 192 Fed. Rep. 733 xxiv 
 
 U. S. V. Eaton, 144 U. S. 677 xiv, 115 
 
 U. S. V. Edwards, 43 Fed. Rep. 67 113 
 
 U. S. V. 11150 Lbs. Butter, 188 Fed. Rep. 157, 195 id. 657..xxv, 116 
 
 U. S. v. Farmers' L. & T., 25 Fed. Cas. No. 15070 27 
 
 U. S. v. Fidelity Trust, 222 U. S. 158 118 
 
 U. S. v. Fisk, 3 Wall. 445 31 
 
 U- S'. V. Foster, 2 Biss. 453 114 
 
 U. S. V. Gallant, 117 Fed. Rep. 281 116 
 
 U. S. V. Glab, 99 U. S. 225 26 
 
 U. S. V. Goldback, 102 U. S. 623 57, 79 
 
 U. S. V. Gooding, 12 Wheat. 460 122 
 
 U. S. V. Griswold, 7 Saw. 311 - 100 
 
 U. S. y. Halberstadt, Gilp. 262, Fed. Cas. 15276 117 
 
 U. S. V. Hall, 131 U. S. 50 113. 
 
 U. S. V. Hardison, 135 Fed. Rep. 419 113 
 
 U. S. V. Hill, 120 U. S. 169 xili 
 
 U. S. V. Hodson, 10 Wall. 395 120, 122 
 
 U. S. V. Howard, 1 Sawyer, 507 38 
 
 U. S. V. Hyams, 146 Fed. Rep. 15; 139 Id. 997 110 
 
 U. S. V. Isham, 17 Wall. 496 48, 122, 123 
 
 U. S. V. Jackson, 1 Hughes, 531 26 
 
 U. S. V. Kaufman, 96 U. S. 567 26 
 
 U. S. V. Kenton, 2 Bond, 87 35 
 
 U. S. V. Keyes, 10 Fed. Rep. 876 48 
 
 U. S. y. Lamson, 165 Fed. Rep. 80 113 
 
 U. S. V. Liquor Dealers, 156 Fed. Rep. 219 116 
 
 tr. S. V. McGuinniss, 1 Abb. U. S. 120 117 
 
 U. S. V. Montjoy, 3 Int. Rev. R., Fed. Cas. 15678 117 
 
 U. S. V. Moore, 11 Fed. Rep. 248 72 
 
 V. S. V. Morin, 4 Biss. 93 114 
 
 U. S. V. Mullins, 119 Fed. Rep. 334 122 
 
 U. S. V. Neustaedter, 149 Fed. Rep. 1010 xxvi 
 
 U. S. V. N. Y. & Cuba Mail, 200 U. S. 488; 125 Fed. Rep. 
 320; 50 L. Ed. 569 95, 117 
 
156 TABLE OF CASES. 
 
 (References are to Pages.) 
 
 U. S. V. Olney, 1 Abb. U. S. 275 122 
 
 U. S. V. One Black Horse, 129 Fed. Rep. 167 114 
 
 U. S. V. Owens, 100 Fed. Rep. 70 70, 97 
 
 U. S. V. Pounds, 171 U. S. 35 75 
 
 U. S. V. Priest, 210 Fed. Rep. 332 118 
 
 U. S. V. Reisinger, 128 U. S. 398 125 
 
 U. S. V. Rennecke, 28 Fed. Rep. 847 26, 45 
 
 U. S. V. Riley, 5 Blatchf. 204. 24 
 
 U. S. V. Rogers, 164 Fed. Rep. 520 116 
 
 U. S. V. Sav. Bk., 104 U. S. 728 xiii, 117, 118 
 
 U. S. V. 7 Bbls. "Whisky, 131 Fed. Rep. 806. 115 
 
 U. S. V. Simons, 1 Abb. 470 35 
 
 U. S. V. 3 Stills, 47 Fed. Rep. 495 75 
 
 U. S. V. Stowell, 133 U. S. 1 120 
 
 U. S. V. Symonds, 120 U. S. 46 xiv 
 
 U. S. V. S'ykes, 58 Fed. Rep. 1000 48, 114 
 
 U. S. V. Thomas, 115 Fed. Rep. 207 ; 192 U. S. 363 45, 90 
 
 U. S. V. Thomasson, 4 Biss. 99 116 
 
 U. S. V. 20 Boxes, 123 Fed. Rep. 135; 133 id. 910 122 
 
 XJ. S. V. Two Barrels Whisky, 96 Fed. Rep. 479 114 
 
 U. S. V. 200 Barrels, 95 U. S. 571 xiv 
 
 U. S. V. 246% Lbs. Tobacco, 103 Fed. Rep. 791 120 
 
 U. S. V. 237 Boxes, 6 Ben. 543 75 
 
 U. S. V. Union Pacif., 91 U. S. 72 122 
 
 U. S. V. Van Slyke, 8 Biss. 227 36 
 
 U. S. V. Vinson, 8 Fed. Rep. 507 44 
 
 U. S. V. "Walsh, 1 Abb. XJ. S. 66 72 
 
 U. S. V. "Wong Kim Ark, 18 Sup Ct Rep. 456 121 
 
 V. 
 
 Vail V. Knapp, 49 Barb. 299 68, 122 
 
 Van Deman v. Lewis Co., 214 Fed. Rep. 827 25 
 
 Vanderbilt v. Bidman, 196 IT. S. 480 xxvi, 118 
 
 Vanderbilt Univ. v. Cheney, 116 Tenn. 259 45 
 
 Vaughan v. O'Brien, 39 How. Pr. 515 55, 63 
 
TABLE OP CASES. I57 
 
 (References are to Pages.) 
 
 Veazle Bk. v. Fenno, 8 Wall. 533 xxvii 
 
 Vermont v. U. S., 217 U. S. 605; 54 L. Ed. 899 xxiv 
 
 Vorebeck v. Roe, 50 Barb. 302 63 
 
 w. 
 
 Wallace v. Craven, 34 Ind. 534 66 
 
 Waring v. Smyth, 2 Barb. Ch. 119 47 
 
 Warren v. Shook, 91 U. S. 704 27, 30, 33 
 
 Warrington v. Furbor, 8 East. 242. 122 
 
 Warwick v. Bettman, 102 Fed. Rep. 127; 108 id. 46 70, 97 
 
 Waterbury v. McMillan, 46 Miss. 635 56 
 
 Wellard v. Moss, 1 Bing. 134 93 
 
 Weltner v. Riggs, 3 W. Va. 445 63 
 
 Western Exp. Co. v. U. S., 141 Fed. Rep. 28 26 
 
 Western U. T. v. Winnsboro, 71 S. C. 231 xlii 
 
 Weyman v. Torreyson, 4 Nev. 124 56, 62 
 
 Wheaton v. Weston, 128 Fed. Rep. 151 xiii 
 
 White V. Treat, 181 U. S. 264; 45 L. Ed. 853 91 
 
 Whitehill v. Stickle, 43 Mo. 537 63 
 
 Wigham v. Pickett, 43 Ala. 140 61 
 
 Wilkes-Barre Co. v. Davis, 214 Fed. Rep. 511 xxvi, 46 
 
 Willey V. Robinson, 13 Allen, 128 47 
 
 Williams v. Talladega, 226 U. S. 404 25 
 
 Wilson V. Carey, 40 Vt. 179 62 
 
 Wilson V. Kennedy, 1 Esp. 245 62 
 
 Wiltse V. State, 8 Heisk. 544 35 
 
 Wingert v. Zeigler, 91 Md. 318 62 
 
 Woodward v. Stearns, 10 Abb. Pr. N. S. 395 25 
 
 Works V. Hershey, 35 Iowa, 340 63 
 
 Wright V. Mich. Cent., 130 Fed. Rep. 843 94 
 
 z. 
 
 Zonne v. Minn. Syndicate, 220 U. S. 187 46 
 
CONDENSED CATCH LINE INDEX. 
 
 FOR INDEX SEE PAGE 167. 
 
€ONDENSED CATCH LINE INDEX TO THE 
 
 ACT. 
 
 For Index, see Page 167. 
 
 (References are to Pages.) 
 
 -A.ct of Oct. 22, 1914, see also separate titles. 
 
 Adliciive stamps, § 5 46 
 
 Beer, etc., § 1 1 
 
 notes 2 
 
 Beer tax, former to revive Jan. 1, 1916, § 24 124 
 
 Bonds, debentures, stocks 80 
 
 notes on 89 
 
 Bond, of indemnity, and others 85 
 
 notes on 96 
 
 Broker's note, or memo, of sale 86 
 
 notes on 99 
 
 Cancellation of stamps, § 8 53 
 
 Certificates, all required 86 
 
 notes on 98 
 
 Certificates, marine, etc 86 
 
 notes on. . . 98 
 
 Certificates of profits, etc 85 
 
 notes on 97 
 
 Chewing gum, etc 107 
 
 notes on 110 
 
 Contract broker's note 86 
 
 notes on 99 
 
 "Conveyance, deed, etc 86 
 
 notes on 100 
 
 [161] 
 
162 CONDENSED CATCH LINE INDEX TO THE ACT. 
 
 (References are to Pages.) 
 
 Custom-house entry, for consumption, etc 86 
 
 Custom-house entry, withdrawal from bond 87 
 
 Distribution of stamps, officially, § 10 56 
 
 Express and freight 83 
 
 notes on. . . 93 
 
 Exportation of taxable mdse. § 19 74 
 
 Failure to stamp papers, penalty, § 6 49, 58 
 
 Forgery and counterfeiting of stamps, § 7 50 
 
 Governmental papers exempt, § 15 69 
 
 Imported articles taxed, § 21 77 
 
 Insurance, all, except certain 87 
 
 notes on 102 
 
 Insurance, certain exempted 87 
 
 notes on 102 
 
 Kind of stamp not essential, § 14 68 
 
 Merchandise stamps, omission of, § 17 71 
 
 Monthly declaration by manufacturer of mdse. § 20 75 
 
 Occupation taxes, §§ 3, 4 18, 39 
 
 notes 22, 43 
 
 Other laws made applicable, § 23 110 
 
 notes on collection Ill 
 
 construction 119 
 
 penalties 114 
 
 protest and recovery 117 
 
 Parlor car or sleeper ticket 89 
 
 notes on 105 
 
 Passage tickets, foreign 88 
 
 notes on 103 
 
 Perfumery and cosmetics 106 
 
 notes on 108 
 
 Perfumery, cosmetics, etc., stamping, § 17 71 
 
 Post-stamping of papers, I 11 58 
 
 Power of attorney. . . 88 
 
 notes on 104 
 
 Promissory notes 83 
 
 notes on 92 
 
 Promissory note, unstamped, § 9 55 
 
CONDENSED CATCH LINE INDEX TO THE ACT. 163 
 (References are to Pages.) 
 
 Protest of note or Wll 89 
 
 notes on 104 
 
 Proxy, voting 88 
 
 Recording forbidden until stamped, § 12 64 
 
 Recording or registry unlawful, unstamped, § 13 67 
 
 Removal, misuse of mdse. stamps, i 18 73 
 
 Removal of unstamped mdse. § 19 74 
 
 Sales of products on exchange 81 
 
 notes on 91 
 
 Sale of stamps, § 10 57 
 
 Schedule A, documentary stamps, § 22 80 
 
 notes on 89 
 
 Schedule B, merchandise tax 106 
 
 Special taxes, general, § 3 18 
 
 notes 22 
 
 Special taxes, tobacco dealers and manufacturers, § 4. . 39 
 
 notes 43 
 
 Stamp laws same for Schedules A and B, § 16 71 
 
 Stamp taxes imposed, § 5 46 
 
 Stamps, cancellation of, § 22 78 
 
 Stamps, preparation, etc., § 22 78 
 
 Stamps, sale, discount, § 22 79 
 
 Stamps, unused, redemption of, § 24 134 
 
 State and local functions exempt, § 15 69 
 
 Take effect, when Act to, § 24 124 
 
 Telegraph and telephone 84 
 
 notes on 95 
 
 Tickets, foreign passage 88 
 
 notes on 103 
 
 Tobacco, special taxes, § 4 39 
 
 notes 43 
 
 "Validity not affected by wrong stamp, § 14 68 
 
 Wines, etc., § 2 4-16 
 
 notes 16 
 
INDEX. 
 
INDEX. 
 
 (References are to Pages.) 
 
 A. 
 
 Abatement. See Drawback. 
 
 Absence of stamps from wines, effect of 6 
 
 Adhesive stamps • 46 
 
 See Stamps. 
 
 Administrative rulings, value of xi, xii, xiii, xiv, 78, 121 
 
 where found xi, xii 
 
 Agent. See Broker. 
 
 Agriculture department and wine fortification 9 
 
 Ale. See Beer. 
 
 Amendments of laws, R. S. § 3339 2, 6 et seq. 
 
 Oct. 1, 1890 7 
 
 June 7, 1906 14 
 
 Appropriation for enforcing Act Ill 
 
 Armory. See Theatre. 
 
 Assessment and collection . . xxiii, 111 
 
 B. 
 
 not taxed 94 
 
 Bank circulation xxvii 
 
 Bankers, special tax on 18 
 
 how computed 18 
 
 banker, defined 18 
 
 postal and savings excepted 18 
 
 banker not taxed as broker 19 
 
 notes 27 
 
 Beer tax, former to revive Jan. 1, 1916 124, 125 
 
 [167] 
 
168 INDEX. 
 
 (References are to FageB.) 
 
 Beer, etc., increased tax on 1, 2 
 
 notes on • . . . 2, 3 
 
 Berth in sleeping car. Schedule A 89 
 
 Bill of lading, required and taxed 83, 93 
 
 Billiard rooms, proprietor, special tax 21 
 
 notes 38 
 
 Billiards. See Bowling. 
 
 Blending of wines 15 
 
 Board of trade, sales on 81, 91 
 
 actual deliveries not taxed. Schedule A 82 
 
 Bond of fortified wine producer 9, 11, 14 
 
 Bonds, debentures, issue of, taxed. Schedule A 80, 89 
 
 Bonds, corporate. Schedule A 80 
 
 Bonds, indemnity and others, tax on 85, 96 
 
 Schedule A 85 
 
 Bond of any description. Schedule A 85 
 
 Bowling alleys, proprietors, special tax 21 
 
 definition of bowling and billiard rooms 21 
 
 notes 38 
 
 Brewers xxiv 
 
 Broker. See the various kinds. 
 
 special tax on 19 
 
 defined 19 
 
 broker's tax not required of banker 19 
 
 Broker's note, or memo, of sale 86, 99 
 
 Schedule A 86 
 
 Broker, stock, special tax 19 
 
 notes 30 
 
 Butter, adulterated and renovated xxIt, xxt 
 
 c. 
 
 Canal Zone 26 
 
 Cancellation of stamps 53, 54, 78 
 
 Cards, playing xxvi 
 
 Certificates, of any required kind 86, 98 
 
 Schedule A 86 
 
 Certificates of damage, etc 86, 98 
 
 Schedule A 86 
 
INDEX. 1(39, 
 
 (References are to Pages.) 
 
 Certificate of indebtedness, corporate, Schedule A 8ft 
 
 Certificate, marine or port 86, 98 
 
 Schedule A 86 
 
 Certificates of profit, etc 85, 97 
 
 Schedule A 85- 
 
 Champagne. See Wines. 
 
 tax on 4 
 
 Cheese, filled xxv 
 
 Chewing gum, etc.. Schedule B 107, 110 
 
 Cigars xxlv 
 
 Cigar manufacturer, special tax 41 
 
 notes 4S 
 
 Cigarette manufacturer, special tax 42 
 
 notes 43 
 
 Circulars. See Administrative Rulings. 
 
 Circulation, bank xxvii 
 
 Circus, proprietor of, special tax 20 
 
 defined 20 
 
 taxed in every state visited 20 
 
 notes 37 
 
 Cognac. See Wine Spirits. 
 
 Collateral, stocks as, not taxed 80 
 
 Collection of taxes Ill 
 
 Commercial broker, special tax 19 
 
 defined 19 
 
 not taxed as commission merchant 19 
 
 notes 34 
 
 Commission merchant, special tax 21 
 
 defined 21 
 
 commission merchant and commission broker one tax. . 21 
 
 co-operative house exempt 21 
 
 notes 38 
 
 Commissioner, rulings of. See Administrative. 
 
 Constitutionality (see notes each section) 123 
 
 Construction of laws 119 
 
 Contract note. See Broker's note of sale. 
 
 Schedule A 86 
 
 Conveyance, tax on 86, 100 
 
 Schedule A 86 
 
170 INDEX. 
 
 (References are to Pages.) 
 
 Co-operative B. & L. securities exempt 69 
 
 Cordials. See Liqueurs; "Wines. 
 
 tax on 4 
 
 Corporation excise tax xxvi 
 
 Cosmetics and perfumery. Schedule B 106, 108 
 
 Cosmetics, etc., failure to stamp 71 
 
 Cosmetics, etc., monthly declaration 75 
 
 Cosmetics, etc., removal of stamps 73 
 
 Cosmetics, etc., removal of, unstamped 74 
 
 Cosmetics. See Merchandise; Perfumery. 
 
 Counterfeiting and forgery of stamps 50, 52 
 
 Custom-house broker, special tax 19 
 
 defined 19 
 
 notes 36 
 
 Custom-house, entry, for consumption. Schedule A 86 
 
 withdrawal from bond 87 
 
 D. 
 
 Debt, instruments securing, exempt. Schedule A 86 
 
 Deed, tax on 86, 100 
 
 Schedule A 86 
 
 Default of stamps. See Omission. 
 
 Dentifrices, Schedule B 106 
 
 Department rulings. See Administrative. 
 
 Discount on stamps sold 79 
 
 Distilled spirits xxiv 
 
 Documentary stamp taxes 80 
 
 Drawback on exports 107, 110 
 
 on wine exported 12 
 
 abatement on recovered spirits 13 
 
 exemption of exported cosmetics, etc 74 
 
 on exported perfumery, etc 107 
 
 Dutch origin of excise taxes ix 
 
INDEX. 171 
 
 (References are to Pages.) 
 
 E. 
 
 EfCect, Act to take 124 
 
 Emergency taxes, use of vii 
 
 may be extended on expiration xi, 125 
 
 Encumbrances, not included in deed tax. Schedule A 86 
 
 Enforcement of tax laws Ill 
 
 Entertainment. See Exhibition. 
 
 Entry, custom-house, for consumption, Schedule A 86 
 
 withdrawal from bond 87 
 
 bonded warehouse. Schedule A 87 
 
 Estoppel, none based on rulings xiv, 115 
 
 Exchange, produce, sales on 81, 91 
 
 Excise, opposition to, reasons for vii 
 
 Exempt, actual deliveries of mdse 82, 91 
 
 agricultural fairs, etc 21 
 
 collateral stocks 80 
 
 insurance, certain kinds 87, 88, 102 
 
 government instruments 69 
 
 lyceum lectures, etc 21 
 
 mutual associations 69 
 
 newspapers within county 84, 94 
 
 telegraph and telephone service, certain 85 
 
 tickets, foreign passage certain 88, 104 
 
 Exhibition proprietor or agent, special tax 21 
 
 taxed in every state 21 
 
 certain exemptions 21 
 
 notes. . . . 37 
 
 Exportation of taxable mdse 74 
 
 Exports, drawback on certain 107, 110 
 
 Express and freight tax on 83, 93 
 
 Schedule A. . . 83 
 
 F. 
 
 Factor. See Commercial Broker; see Commission Merchant. 
 Failure to Stamp. See Omission. 
 Fairs. See Exhibitions. 
 
172 INDEX. 
 
 (References are to Pages.) 
 
 Fermented liquors xxlv, 1, 3 
 
 See Beer. 
 
 Flour, mixed xxt 
 
 Foreign securities .taxed 65 
 
 Forfeiture. See Collection; Penalties. 
 
 of unstamped wines, etc. 6 
 
 Fortification of sweet wines 6 
 
 notes on 1& 
 
 for exportation 11 
 
 for making cordials, liqueurs, etc 15 
 
 Fortified Wines. See Wines, etc. 
 
 Freight and express, tax on 83, 93 
 
 Schedule A 83 
 
 G. 
 
 Governmental instrumentalities exempt 69 
 
 Government securities, etc., exempt 69 
 
 Grape brandy. See Wine Spirits. ' 
 
 tax Increased 6, 12, 13 
 
 defined 7 
 
 H. 
 
 Hair preparations. Schedule B 106 
 
 Hall. See Theatre. 
 
 Hawaii xxvlii, 127 
 
 Holland, origin of stamp laws in x 
 
 I. 
 
 Imported articles pay duty and tax 7T 
 
 Income tax. . zxvii 
 
 Indemnity bonds, tax on 85, 96. 
 
 Indictment. See Collection; Penalties. 
 
 Intent to evade law 58, 62 
 
 Inheritance Tax. See Legacy. 
 
INDEX. 173 
 
 (References are to Pages.) 
 
 Injunction against tax, impossible xii, xiii 
 
 Insular possessions. . . xxviii, 126 
 
 Insurance, all kinds, except 87, 102 
 
 kinds exempted 87, 102 
 
 marine, inland, fire, fidelity, guaranty, liability, glass, 
 boiler, burglary, elevator, sprinkler, rents, profits, 
 
 bond, title, credits. Schedule A 87 
 
 certain forms exempted, life, accident, health, workmen's 
 
 and co-operative fire. Schedule A 87 
 
 Internal Revenue Laws xv, xxi, xxiii 
 
 classification of xxii 
 
 construction of xxii, 119 
 
 general, other than war tax xxi 
 
 miscellaneous xxviii 
 
 war tax of 1898, cf. each section. 
 
 Internal Revenue System of XJ. S xxi, xxiii 
 
 War Revenue Act, relation to x, xxi 
 
 table of statutes, 1791-1913 xv 
 
 L. 
 
 Leases, not taxed 101 
 
 Legacy tax xxv, 118 
 
 License taxes, origin of. . 22 
 
 License Tax. See Special Tax. 
 
 Liens, not included in deed tax. Schedule A 86 
 
 Litigation, amount of on tax questions iii, xii 
 
 Liqueurs. See Wines. 
 
 tax on. . . ■ • ■ • 4 
 
 from fortified wines 15 
 
 Local government securities exempt 69 
 
 Lyceums. See Exhibitions. 
 
 M. 
 
 Manufacturer of cigars, special tax 41 
 
 notes 43 
 
 Manufacturer of cigarettes, special tax 42 
 
174 INDEX. 
 
 (References are to Pages.) 
 
 Manufacturer of perfumery, etc 71, 7& 
 
 to make monthly declaration 76 
 
 Manufacturer of tobacco, special tax 40 
 
 notes 43 
 
 single tax on maker various kinds 42 
 
 Marine certificates 86, 98 
 
 Merchandise, exportation of taxable 74 
 
 Merchandise imported, taxable 77 
 
 Merchandise, removal of unstamped 74 
 
 Merchandise, sales of on exchange 81, 91 
 
 Merchandise stamps, omission of 71 
 
 Merchandise stamps, removal of 73 
 
 Merchandise taxed 106, 108 
 
 Merchant. See Commission Merchant. 
 
 Mortgage lien, not included in deed tax. Schedule A 86 
 
 Mortgages, not taxed 68, 86 
 
 Schedule A 86 
 
 Municipal securities exempt -. 69 
 
 Museum. See Theatre. 
 
 Mutual associations, certain exempt. 69 
 
 N. 
 
 Newspapers, shipments of 83, 93 
 
 Notes, promissory, tax on. . 83, 92 
 
 Schedule A. . . . 83 
 
 o. 
 
 Occupation tax. See Special Tax. 
 
 Oleomargarine xxir 
 
 Omission of mdse. stamps 71 
 
 Omission of stamp, effect on paper 58, 60, 64 
 
 Omission of documentary stamp, penalty 49 
 
 Omission of stamp, correcting 58, 60 
 
 Opium xxiv 
 
 Palace or parlor car seat. Schedule A 81> 
 
INDEX. 175 
 
 (References are to Pages.) 
 
 P. 
 
 Panama canal zone 26 
 
 Parlor car ticket 89, 10& 
 
 Partnership 26, 33, 116 
 
 Passage tickets foreign 88, 103 
 
 Pawnbroker, special tax 19 
 
 defined 19 
 
 notes 33 
 
 Penalties generally. . . 114 
 
 See separate titles. 
 
 Penalty, for evading any tax Ill 
 
 double tax for evasion Ill 
 
 Penalty for failure to stamp 65, 58, 60 
 
 Penalty for omission to stamp remission of 59 
 
 See several objects. 
 
 Penalty for unlawful use of wine spirits 15 
 
 Pension, etc., papers exempt. Schedule A 89 
 
 Perfumery. See Merchandise. 
 
 Perfumery and cosmetics. Schedule B 106, 108 
 
 Perfumery, etc., failure to stamp 71 
 
 Perfumery, etc., monthly declaration 76 
 
 Perfumery, etc., removal of stamps 73 
 
 Perfumery, etc., removal of, unstamped 74 
 
 penalty for failure or falsity of declaration 76 
 
 tax, when in effect 77, 107 
 
 manufacturer defined 77 
 
 imported goods included 77 
 
 imported goods, how taxed 77 
 
 when to be stamped 107 
 
 drawback on exports 107 
 
 Philippines xxviii, 127 
 
 Playing cards. . . . xxvi 
 
 Pledge of stock, exempt, Schedule A 80 
 
 Pool. See Bowling. 
 Pool Room. See Billiard. 
 
 Port certificates. Schedule A 86 
 
 Porter. See Beer. 
 
176 INDEX. 
 
 (References are to Pases.) 
 
 Porto Rico xxviii, 126 
 
 Post-stamping of papers. . . 58, 61 
 
 Power of attorney, any kind. Schedule A'. 88, 104 
 
 Profits, corporate interest in, Schedule A 85 
 
 Promissory note, omitting stamp 55 
 
 Promissory notes, tax on 83, 92 
 
 Schedule A 83 
 
 Protest, Schedule A 89 
 
 Protest against tax 117 
 
 Protest of note, bill, etc 89, 104 
 
 Proxy, for company meeting 88 
 
 Schedule A 88 
 
 Public Exhibition. See Exhibition. 
 
 R. 
 
 Rebate. See Drawback. 
 
 Record, unstamped papers forbidden 64 
 
 unlawful to, unless stamped 67 
 
 Records and reports, wine producers 9 
 
 Records to be kept by persons liable 110 
 
 Recovery of tax paid. . . 117 
 
 Rectifiers xxiii 
 
 of cordials, etc 5, 15 
 
 Redemption of unused stamps 124 
 
 Refund. See Drawback. 
 
 Registration unlawful unless stamped 67 
 
 Regulations as to wines, etc 6 
 
 Removal, misuse of mdse. stamps 73 
 
 Removal of unstamped mdse. 74 
 
 Repeal of tax law, effect of 125 
 
 Returns or reports to be made by persons liable 110 
 
 s. 
 
 Sale, broker's note of. Schedule A 86 
 
 Sale agreement, Schedule A 81 
 
 Sale on board, memo, required. Schedule A 82 
 
INDEX. 177 
 
 (References are to Pages.) 
 
 Sale of mdBe. on exchange for actual delivery exempit 82 
 
 Sale of mdse. on exchange, memo, required 82 
 
 Sale of products on exchange 81, 91 
 
 Sale, etc., of stock, taxed 80, S9 
 
 Schedule A, stamps on documents 80 
 
 Schedule B, perfumery, etc 106, 108 
 
 tax on mdse 106 
 
 Seat in parlor car. Schedule A 89 
 
 Securities, foreign taxed 65 
 
 Securities, etc., of domestic governments exempt 69' 
 
 Show. See Exhibition. 
 
 Skin preparations. Schedule B 106 
 
 Sleeping car berth 89, 105 
 
 Special taxes. See Bankers; Billiards; Bowling; Brokers; 
 Circuses; Commercial Brokers; Commission Merchants; 
 Custom-house Brokers; Exhibitions; Pawnbrokers; The- 
 atres; Tobacco. 
 
 Special taxes, in general 18-22 
 
 when Imposed 18 
 
 notes 22 
 
 Special taxes, other than war revenue xxiii, 22 
 
 Special taxes, penalties 43, 45 
 
 Special taxes, pro rata for 1916 43 
 
 Special taxes, tobacco, etc., text 39 
 
 notes 43 
 
 Stamp laws same for Schedules A and B 71 
 
 Stamp taxes imposed 46 
 
 when imposed 46 
 
 on what securities and documents 46 
 
 Schedule A 80 
 
 on merchandise, perfumery, etc 46 
 
 Schedule B 106 
 
 penalty for omitting stamp 49 
 
 penalty for forging, counterfeiting, etc 50 
 
 cancellation of stamps 53 
 
 penalty for failure 53 
 
 on promissory note; penalty 55 
 
 powers and duties of ofBclals 66 
 
 distribution and sale 56 
 
178 INDEX. 
 
 (References are to Pages.) 
 
 Stamp taxes imposed — Continued. 
 
 omission with intent, penalty 58 
 
 post-stamping under penalty 58 
 
 remission of penalty 59 
 
 post-stamping of copy • . . 69 
 
 unstamped instrument cannot be recorded 64 
 
 I foreign securities taxed 65 
 
 recording and registering of unstamped paper unlawful. 67 
 
 validity of paper not lost for want of particular stamp. 68 
 
 government securities, U. S., State, local, exempt 69 
 
 governmental instrumentalities exempt 69 
 
 co-operative association securities exempt 69 
 
 building and loan associations exempt 69 
 
 stamp law, all apply to all papers and things 71 
 
 perfumery, cosmetics, etc., penalty for omitting stamps. 71 
 
 perfumery, cosmetics, etc., penalty for removing stamps. 73 
 perfumery, cosmetics, etc., concealing or removing un- 
 
 ' stamped goods 74 
 
 perfumery, cosmetics, etc., for export, exempt under 
 
 regulation 74 
 
 Stamp taxes, general imposition of 46 
 
 laws applicable for collecting 110 
 
 records to be kept and returns made by person liable. . 110 
 
 penalty for evasion Ill 
 
 Stamp tax, in Holland and England x 
 
 Stamp tax on perfume, cosmetics, etc 71 
 
 Stamps, cancellation of 53, 54, 78 
 
 Stamps, distribution of, officially 56 
 
 Stamps, exchange of old rate for new 2 
 
 Stamps for wines, etc 5 
 
 Stamps, forgery and counterfeiting of 50, 52 
 
 Stamps, omission of, penalty for 49 
 
 Stamps, official preparation of 78 
 
 Stamps, omission from promissory note 55, 58 
 
 Stamps, payment of taxes by 46 
 
 Stamps, preparation, distribution, sale 78 
 
 Stamps, sale of 57, 79 
 
 Stamps, sale at discount 79 
 
INDEX. 179 
 (References are to Pages.) 
 
 Stamp taxes. Schedule A. 
 
 on securities and documents 80 
 
 when in effect 89 
 
 Bee under various names. 
 
 Stamps, unused, to be redeemed 124 
 
 when taxes cease 124 
 
 Stamps, use of old former tax 2 
 
 State and local government functions exempt 69 
 
 Statutes amended 2, 6 et seq. 
 
 Statutes, construction of 119 
 
 Statutes, other made applicable 110, 111 
 
 Statutes, Table of Revenue xv 
 
 Still -wines. See Wines. 
 
 Stills, makers of xxiil 
 
 Stock broker liable for stamp omission 81, 90 
 
 Stock broker, special tax 19 
 
 notes . . ; 30 
 
 Stock, deposited as collateral, exempt 80, 89 
 
 Stock, issue of, taxed '. 80, 89 
 
 Stock, sales, etc., of, taxed 80, 89 
 
 how taxed. Schedule A 80 
 
 Succession tax. See Legacy. 
 
 Suit by government. See Collection. 
 
 Sweet wine, producer, use of wine spirits by 7 
 
 T. 
 
 Tax. See the separate titles. 
 
 Tax cannot be enjoined xii, xiii 
 
 Taxes, collection of Ill 
 
 Taxes in effect, when 124, 125 
 
 all under Act, except beer, to cease, when 124, 125 
 
 Taxes, rates of. See Table end of book, various titles. 
 
 Taxes, recovery of, wrongfully collected 117 
 
 Telegraph and telephone, oflBcial service exempt 85 
 
 Telegraph and telephone, tax on 84, 95 
 
 company to make monthly report 84 
 
 tax on messages costing 15c 84 
 
180 INDEX. 
 
 (References are to Pages.) 
 
 Telegraph and telephone, tax on — Oontinued. 
 
 company to pay the tax 85 
 
 company to collect from person paying for message. ... 84 
 
 company service exempt 85 
 
 government service exempt 85 
 
 Telephone and telegraph, tax on 84, 95 
 
 See Telegraph. 
 
 Theatre, proprietor of, special tax 20 
 
 according to seating capacity 20 
 
 theatre defined 20 
 
 theatre under lease 20 
 
 certain halls excepted 20 
 
 notes 36 
 
 Tickets, foreign passage 88, 103 
 
 parlor car, or sleeper 89, 105 
 
 Tobacco and snuff xxiv 
 
 Tobacco dealers and manufacturers, special tax 39 
 
 when imposed 39 
 
 on basis of annual sales or transfers 39 
 
 dealers classified 39 
 
 every separate store taxed 40 
 
 manufacturers classified, tobacco 40 
 
 manufacturers classified, cigars 41 
 
 manufacturers classified, cigarettes 42 
 
 single tax for manufacturers in all classes 42 
 
 notes 43 
 
 dealers in leaf 39 
 
 in any form of tobacco 40 
 
 Tobacco growers not manufacturers 44 
 
 Tobacco manufacturers, special tax 40 
 
 notes 43 
 
 Toilet preparation. Schedule B 106 
 
 Transportation, tax on shipments, Schedule A 83 
 
 bill of lading obligatory 83 
 
 shipper must stamp bill of lading 83 
 
 newspapers pay on monthly report 83 
 
 newspapers exempt in county 84 
 
 Treasury decisions. See Admin. Rulings. 
 
INDEX. 181 
 
 (References are to Pages.) 
 
 V. 
 
 Validity of paper, effect on of not stamping 61 
 
 not affected by wrong stamp. 68 
 
 Vaseline, Schedule B 106 
 
 w. 
 
 War Revenue Act, text 1-124 
 
 War tai, not technical name of Act vii 
 
 War tax of 1898, Cf. notes to each section. 
 
 Warehouse beer, how taxed 2 
 
 Warehouse, bonded customs, entry. Schedule A 87 
 
 Warehouse receipts, not taxed 104 
 
 Wilson, Woodrow, quoted on taxes Ix 
 
 Wines, liquors, etc., tax, who to affix stamps 5 
 
 Wines, taxes on. . . 4 
 
 eligible for fortification 8 
 
 fortified, under regulations 6 
 
 fortified, used for liqueurs, etc 15 
 
 gangers 14 
 
 still tax on 4 
 
 tax not required on taxed liqueurs 5 
 
 tax paid by stamps 5 
 
 wine taxes, notes on. . 16 
 
 Wine spirits for fortifying, tax on 6 
 
 for fortifying regulated 7 
 
 fortified, forfeited for excess alcohol 7 
 
 fortified, for exportation 11 
 
 defined 7 
 
 laws amended 6, 14 
 
 notes on 16 
 
 penalty for unlawful use. 15 
 
 recovery of, in process. . 13 
 
 refund of tax on 12, 13 
 
 redistillation 13 
 
 tax Increased 6, 12, 13 
 
 [Total Number of Pages 209.] 
 
A TREATISE UPON THE 
 
 Income Tax Law 
 
 By THOMAS G. FROST 
 
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KF 5951 A32 b45 
 
 
 Author 
 
 Bender's wax revenue law, 
 
 Vol.' 
 
 1911^. 
 
 TiUc 
 
 Copy 
 
 
 
 Date 
 
 Boitower's Name 
 
 
 
 ^