Cornell University Law Library The Moak Collection PURCHASED FOR The School of Law of Cornell University And Presented February 14, 1893 IN nEnoRY OF JUDGE DOUGLASS BOARDMAN FIRST DEAN OF THE SCHOOL By his Wife and Daughter A. M. BOARDMAN and ELLEN D, WILLIAMS Cornell University Library KF 62761870 Internal revenue laws.lnternal revenue s 3 1924 020 000 968 W W "Pi Cornell University A I ill J kj Library The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924020000968 INTERNAL EE VENUE LAWS. Internal Revenue Statutes NOW IN FORCE; WITH NOTES REFERRING TO ATT. DECISIONS OE THE COUETS DEPARTMENTAL RULINGS, CIRCULARS, AND INSTRUCTIONS, EEPOETED TO OOTOBBE 1, 1870. EDITED BY OELANDO F. BUMP, REGISTER IN BANKRUPTCY. NEW YOEK: BAKEE, VOOEHIS & CO., PUBLISHEES, 66 NASSAU STREET. 1870. Entered, acoordiog to Act of Congress, in the year one thousand eight hundred and seventy, by BAKER, VOORHIS & CO., In the Office of the Librarian of Congress, at Washington. Baker & Godwin, Printers, Printing-House Square, New York. PREFACE. The aim of tlie author in compiling this volume has been to collect all the existing statutes, departmental rulings, and court decisions, on matters of Internal Eevenue, in one book, where all living, valuable law may be easily accessible to offi- cials, at'torneys, and business men. The matter to compose such a work consists of three kinds, to wit : statutes, decisions of courts, and rulings of the Office of Internal Eevenue, in- cluding, under the head of rulings, all decisions, regulations, circulars, and instructions issued by the Commissioner. In order that these three kinds of material may be readily dis- tinguished from each other, three kinds of types have been used ; the largest for statutes, the next in size (open or leaded) for court decisions, and the smallest for departmental rul- ings. For the sake of convenience, clearness, and accfessibility, the court decisions and departmental rulings have been placed under the sections of the statute to which they relate, with proper references, so that the reader can readily determine whether or not there has been any decision or ruling upon the portion of the statute that he may be considering. The arrangement of the statutes is similar to that of the weU-known official compilation, and has been adopted both on account of its excellence and because the publip are already familiar with it, and will thus more easily find the topics they may seek. The act of June, 30, 1864, has been taken as the basis of this work, and the sections that are still in force are printed without brackets and in their original order, a,nd are IV PBEFACB. indicated by bold-face figures. The repealed sections are noted and a reference made to the repealing statutes. The dates of the acts by which a section has been amended are noted, and all merely verbal amendments have been incorporated in the sections, so that the wording in this work is that of the amended sections. "Where a section has been modified or affected by subsequent acts, without being expressly or in effect repealed, the modifying sections have been placed under the section thus affected by them. A few sections have been' also adopted and inserted from older statutes. For the sake of printing the act of July 20, 1868, consecu- tively, the sections relating to fermented liqizors have been placed first, and the act of July 20, 1868, inserted between them and the sections relating to special taxes. Those por- tions of the act of July 14, 18Y0, relating to income and cor- porations, have been inserted in the place occupied by the sec- tions for which they are substituted, and the remaining sec- tions have been either inserted under sections modified by them or placed at the end of the volume. In a^l cases, sections that belong to other acts than that of June 30, 1864, have been indicated by brackets. A table showing the pages on which sections of acts subsequent to the act of June 30, 1864, may be found has been prefixed for convenience. Those who are in anywise familiar with matters of Internal Eevenue will at once perceive that the labor involved in a work of this kind is neither small nor easy. Legislation has been frequent and not very systematic. Consequently it is difficult at times to tell how far an act has been affected by subsequent statutes. Thus the pith of the law in regard to manufactures was taken away by the acts of March 31, 1868, and July 14, 1870, and of the law in regard to special taxes by the act of July 14, 1870. This, of course, leaves other sections relating to those topics almost meaningless, and yet they may possibly affect some question that may arise hereafter. In all such PEEFAOE. V cases it lias been deemed safer to print the sections thus affected, and indicate the change, when necessary, by the in- dex. Decisions and rulings, moreover, have been rendered upon sections that have been repealed or modified, and yet they may have such a bearing upon existing sections that any work would be deficient without them. Thus the act of July 14, 1870, is entirely new, and yet its provisions are so nearly similar to those of the preceding acts that rulings and decisions under the old are applicable under the new act. Decisions were rendered under section 99 of the act of June 30, 1864, prior to the amendment of July 13, 1866, but no attorney would think a volume complete that did not refer to those de- cisions. Eulings under section 59 of the act of July 20, 1868, are similarly affected by the repeal of nearly all special taxes. Decisions of courts also frequently contain doctrines and principles or points of practice that do not depend upon par- ticular statutes. In all such cases it has been deemed advisa- ble to place the rulings and decisions under the proper sec- tions. The selection and collection of the rulings and decisions, of course, depend upon the judgment and discretion of the author, and others may at times differ from him. The object of the work, however, is not to present a treatise upon Internal Revenue law, or to state authoritatively what is law upon any particular topic, but to collect whatever may have a bearing upon existing statutcB, arrange it so as to be con- venient and accessible, and thus furnish to those who may de- sire it the means of finding out what is law. It would be strange, indeed, if in such a mass of matter there should not be some mistakes. The critical examination inspired by interest in some special question may at times lead to a closer inspection, and thus to the detection of errors by the very microscopical character of the investigation. It is VI PREFACE. believed, however, that, in the main, the work will be found correct and reliable, and errors few in number and unimpor- tant. To a public always grateful for faithful work and pains- taking research, and generous toward mistakes that are in- cident to humanity, this volume is offered. It seems scarcely necessary to acknowledge the author's in- debtedness to the Internal Kevenue Record, for this volume is full of references to it. It contains the only collection of rul- ings, and the best collection of decisions. Without it this work could hardly have been written. OELAJSTDO F. BUMP. Baltimore, October 1, 1870. CONTENTS. OFFICE OF INTEENAL EEVENUE. Commissioner, duties and powers of . Organization of office of internal revenue .... 17 18 GENEEAL PEOVISIONS. Commissioner to keep accounts and give bonds Officers to pay over money daily Duties oC deputy commissioner Revenue agents .... Revenue agents ..... Inspectors ..... Collection districts .... Appointment of collectors and assessors . Reduction of number of collection districts . Assessment districts .... Appointment of assistant assessors Reduction of number of assistant assessors Designation of assistant assessor for specific duties Collector's bond .... Appointments of deputy collectors Returns made to assistant assessors When returns are to be made . Duties of assistant assessors Returns where parties give information Proceedings in case of failure to make returns or fraudulent rSturns Returns to be in legal tender . Penalty for fraudulent returns ' . Property of non-residents of districts . Property lying out of district Classification of lists .... Appeals to assessors Lists to be furnished collectors .... Malfeasance in office by assessors and assistant assessors . Salaries of assessors and assistant assessors Penalty for receiving money for appointment of assistant assessors Accounts of assistant assessors .... Compensation of collectors , . Apportionment of commissioners .... Receipt for lists and returns ..... Collection of tax: by distraint .... When returns shall be made ... 18 19 33 33 33 33 33 S3 34 34 35 35 35 25 36 37 38 38 39 39 35 35 87 87 37 40 41 43 43 47 47 50 56 57 57 64 Till CONTENTS. Penalty for failure to pay tax .... Sale for taxes ..... Sale of real estate ..... Commissioner to have charge of real estate Property of non-residenta .... Transmittal of lists to other collectors Eeport of collections ..... Collectors charged with taxes Delinquent collectors ..... Malfeasance in office by collectors or their deputies Officers may enter buildings . . . . Obstructing officer ..... Beceiying money to compromise offences Personating an officer .... Conspiracy ...... Bribery ...... Deputy may act as collector during temporary disability Deputy may act as collector during vacancy Compensation of deputy acting as collector . Suits to recover taxes ..... Regulations in regard to suits Perjury ....... Separate accounts at Treasury Appeals to commissioner .... When suits for taxes may be commenced . Bill of sale to be evidence .... Insurrectionary districts .... Direct tax ...... Seizures for fraud ..... Fraudulent removal or concealment Search warrants ..... Seizure of property worth less than |300 Provisions for returns applicable to all liable to tax Adoption of Act August 6, 1846 Embezzlement ..... Suits for money withheld by officers . Transcripts to be evidence Who may administer oaths .... Pranking privilege .... Officers not to ^^ interested in distilleries, &c. Rendering accounts of fees Appointment of inspectors . ... Designation of officers to inspect spirits . Bonds of inspectors ..... PiGE. 64 65 66 69 69 70 70 71 74 75 76 76 77 77 77 80 81 81 82 83 89 89 91 93 93 93 93 103 103 103 106 106 106 108 108 109 110 110 110 111 111 111 FEEMENTED LIQTJOES. Brewer's notice Brewer's bonds . Tax on fermented liquors . Brewer's books . Verification of brewer's entries Illicit brewing . Stamps on fermented liquors 113 113 113 114 116 117 117 COIfTENTS. IX Affixing and cancellation of stamps for fermented liquors Fraudulent removal of fermented liquors Marks on vessels for fermented liquors Fraudulent removal of stamps for fermented liquors Non-payment of tax on fermented liquors Bottling fermented liquors .... PAGE. 119 119 133 123 123 138 DISTILLED SPIEITS. Tax on distilled spirits Proof spirit. Distillers of brandy from apples, &c, Meters Definition of distilled spirits Registration of stiU .... Kotice given by distiller or rectifier Distiller's bonds .... Approval of bonds, Priority of lien Consent of owner of fee not required Plan of distillery ..... Survey of distilleries .... Distilling not io commence till bond given Where stills may be used Capacity tax ..... Manufacturers of stills .... Distill&ry warehouses .... Beceiving cisterns .... Construction of doors, tubs, &c. . Signs of distillers, &c., of distilled spirits Distiller's books Computation of product of distilleries Daily account of materials used by storekeepers Suspension of work . ' . Gauging and marking distilled spirits Withdrawal of distilled spirits from warehouse Payment of tax before withdrawal Stamping and marking distilled spirits on withdrawal Stamps for distilled spirits in book form Stamps for distilled spirits, how made Collector's account for stamps for distilled spirits Fraudulent affixing of stamps for distilled spirits Reduction of producing capacity Inspection of worm tubs .... Officers may enter distillery by day or night . Facilities for examination of distillery . Search to detect fraudulent distillation Work on Sunday ...... Fraudulent removal of distilled spirits Distilled spirits removed by day . Fictitious proof . . . . Evasion of tax on distilled spirits False weight, &c. .... Detention of suspected spirits Bonding seized distilleries Obliteration of stamps, &c., on distilled spirits . 124 124 139 133 134 135 137 140 143 143 144 150 151 153 153 153 154 156 157 158 161 164 165 167 172 174 175 181 181 183 184 184 185 185 186 186 187 187 189 189 189 190 .190 191 191 COIfTENTS, Distilling without payment of special tax Books of rectifiers, &c. PuTcliases of more than twenty gallons of spirits Change of package .... Sparkling wines .... Supervisors ..... Detectives ..... Suspension of collectors and assessors Storekeepers . . Salaries of storekeepers Collection of storekeeper's salary . Gaugers ...... Drawback on alcohol and rum Regulations for exportation of alcohol and rum Withdrawal of spirits fi-om bonded warehouse Extension of time for withdrawal Stamping stock on hand Sale of forfeited spirits .... Special taxes .... PAGE. 193 194 196 196 197 198 200 200 201 205 205 306 208 309 210 211 211 313 214 TOBACCO, SNUFF, AND CIGAES. Mode of ascertaining amount of special tax .... 231 Amount of tax on tobacco ...... 331 Packages for manufactured tobacco ..... 333 Metallic packages ...... 224 Manufacturers to furnish statements, give bonds, &c. . . . 224 Manufacturer's sig-ns ...... 236 Record of manufactories ...... 326 Inventories and books of manufacturers . . . . . 227 Tobacco stamps ....... 338 Labels for manufactured tobacco ..... 333 Penalties against manufacturers ..... 334 Absence of stamp evidence of fraud . . . .335 Penalty for evasion of law . . . . . .335 Destruction of stamp on emptying packages . . . 236 Bonded warehouses ....... 336 Transportation in bond to bonded Warehouse . . . 240 Actual manufacturer to aflBx stamps ..... 242 Books of dealers . . ' . . . . . 243 Stamps on imported tobacco ...... 343 Stamping stock on hand ...... 844 False representation on sales of tobacco, &c. .... 345 Sale of tobacco or snuflf in bond ..... 345 Tax on cigars ........ 246 Cigar manufacturers to furnish statements, give bonds, &c. . 246 Signs of cigar manufacturers ...... 347 Record of cigar manufacturers and cigar manufactories . . 248 Mode of packing cigars . . . ... . 348 Inventories and books of cigar manufacturers . . . 348 Stamps for cigars. . . . . . . . 350 Labels for cigars ....... 350 Name on cigar labels ....... 351 Fraudulent removal of cigars ..... 251 Absence of stamp evidence of fraud ..... 252 Manufacture of cigars on commission .... 252 CONTENTS. XI Penalties against manufacturers of cigars Stamps on imported cigars . , Inventory of' cigars on hand Refunding tax on cigars Fraudulent representations on sales of cigars Penalty for wilful violation of law Fraud in distilling spirits Officers not to be interested in! distilleries, &o, Malfeasance in ofBce Fraudulent bonds .... Oflicial misconduct Collector's bonded account Coinmissioner may make regulations . Compromising suits Entering nolle prosequi Regulations for time of assessment Meaning of terms Repeal of prior acts Bill in chancery Tax on all articles produced in United States When act takes effect . SPECIAL TAXES Persons liable to special tax Registration .... Non-payment of special tax Receipt for special taxes No additional tax in case of death or removal More than one pursuit by same person Sales of auctioneers Tax on partnerships Special taxes .... When gross receipts do not exceed f 1,000 Wines of native growth Refunding excessive taxes PAGE. 253 353 353 254 255 255 356 357 357 358 358 359 359 359 361 361 361 361 363 363 368 363 364 364 265 366 267 267 267 368 368 368 369 ILLUMINATING GAS. Statements of manufacturers Time for making returns Omission to pay tax Assessment on evasion of tax . Full amount of actual sale . Tax on illuminating gas Tax added to contract price Purchase of goods free from tax Tax on machinery . Exemption of naval machinery 270 370 371 373 273 274 376 376 376 376 BEOKEES. Sales made by brokers, &c. 377 Xll CONTEKTS. BANKS AND BANKEES. Deposits, capital and circulation . Circulation of State banks .... Notes of municipal corporations When circulation of State banks exempt Persons having more than one place of business PACK 379 381 283 382 383 INCOME. Persons liable to income tax What is subject to income tax Exemption from income tax Deductions from income-tax For what time assessed Income returns Appeal to assessors Declaration under oath Foreign consuls Dividends of corporations . ' Insurance companies Return of dividends Eepeal of prior sections 283 385 390 291 397 297 399 300 300 300 303 804 304 STAMP TAXES. Who shall affix stamp Records of instruments Use of more than one stamp Official documents Forged or counterfeit stamps Mode of cancellation Commissioner may prescribe mode Omission of stamp, Collector may stamp Foreign bills of exchange . Exemptions .... Sale of stamps Collector may determine amount Unstamped documents no evidence Provisions extend to Schedule C Omission to stamp articles in Schedule C Removing stamps from articles Evasion of tax on articles Exportation of articles Exportation of matches, &c. Transfer of matches, &c., to vrarehouse Tax on imported articles Medicines exempted Certain officers to sell stamps Collection of tax on omission of stamp Schedules .... Schedule C .... 806 308 308 309 309 811 813 313 834 334 324 336 827 328 328 829 330 330 331 332 383 332 333 334 335 356 CONTRKTS. Xlll DEAWBAOK On what drawback allowed Drawback on cotton goods What drawback on cotton goods . When allowed . . . . Collector to superintend exportation Fraudulent claim of drawback Repeal of prior acts Eepeal of inconsistent acts . . Regulations by Commissioner Regulations for assessment, &c. Foreign consuls Prosecution of suits, Informers' shares Fraudulent debt invalid Disbursing agents Meaning of terms Removal of suits Officers sued in State courts Writ of error .... Repeal of prior acts Rewards . . . . Fraudulent wrappers, &o. . Sales upon distraint or forfeiture Repeal of prior acts PAGE. 360 360 361 361 363 362 363 365 365 865 365 366 369 370 370 370 373 374 374 375 375 376 , 376 TAXES EEPEALED. Special taxes Tax on sales Various taxes Stamp duty . Tax on barges, etc. Legacy and succession Provision dealers 377 377 378 378 3,78 378 379 APPENDIX 380 LIST OF CASES. PAGE. Adams v. Dale 307, 312 Aiken e. Blaisdell 364 Anderson v. Coble ' 342 Assessor v. Osborne 373 Bank for Savings v. Collector. . .281 Bayly «. McKnight 807 Ballard' v. Bumside. . .307, 312, 336, 339 Baird k Pridmore 316, 317 In re Blair Distillery 100 Blake i). Hall 841, 353 Blake v. McCartney 92 Blackwell v. Denie 819 Beebe v. Button 316, 317, 322. Boyd et al. ». Hood et al . . . 307, 336 Belger « Dinsmore 335 Botkins v. Spurgeon 306 Bondnrant v. Crawford 335 Bowers et al. «. Beck 842 Brown v. Crandall 322 In re Brown 33, 41 Blunt «. Bates 316, 322 Burnap v. Losey 328, 336 CardeU ®. Bridge 343 In re Oallicott 78, 79 Capps V. Watts 835 Carpenter v. Snelling . . 327, 338, 350 Clark et al. ». Gilbert. . .92, 278, 379 Craig V. Dimock .806, 816, 827 Celley v. Gray 307 Cedar Rapids & St. Paul R.R. Co. «. Stewart 312 City of Phila. v. Collector. . .61, 62, 93, 375, 373 Corry Nat. Bank ®. Eouse. .308, 313, 316, 317, 320, 323 Cole V. Bell et al 843 Commonwealtb v. Hardiman. . . 343 Colerick et al. * Bowser 806 Commonwealth v. Casey 269 Commonwealth r. Holbrook 269 Commonwealth ». Keenan 369 Cooke 11. England 333 Crocker v. Foley 316, 836 Cutting V. Gilbert 92, 373 PAGE. V. Bufflngton 387 Day ». Baker , . . 323 Deskin v. Graham 322 Desmond v. Norris 313 De Barre «. Livingstone 335 Dorsheimer et al. «. U. S 369 Dowd V. Wright 323 In re Doll 32, 33, 34 Dorris ii. Grace 307, 316, 323 Dowler ». Cushwa 323 Dudley v. WeUs .816, 817 East Haven v. Derby 343 Fifield V. Close 306 Ford V. Clinton 306 Garland v. Lane 828 Green et al. v. Lowry 321 German Liederkranz ». Schieman, 306 Gibson v. Hibbard 323 Grover et al i). King, 92 Goodwin v. Wands '. . 316 Govern is. Littlefield 816 Groesbeck v. Seeley 345 Guyther v. Boury 336 Hallock 11. Jaudin 316, 317, 318 Hawkins v. Wilson 328 Hardin v. Branner 830 Harshaw v. McCombs 320 Harper ». Clark. ,306, 807, 308, 316, 817 Hibbard v. Gibson 321 Hitchcock V. Sawyer. .307, 316, 317, 318 Holyoke Machine Co. v. Franklin Paper Co 316, 323 Howe v. Carpenter 316, 317, 327 Hoppock V. Stone. 320, 321, 323, 324 Hornthall v. Collector 372 Hugus V. Strickler 307, 316, 323 Hunter e. Cobb 337 Ins. Co. 13. Ritchie 372 Israel v. Redding 319, 320 XVI LIST OF CASES. PAGE. Jackson ». Northern Central B.E. Co 303 Jackson ». Allen 306, 307, 335 Jacquin v. Warren 318, 319, 339 James v. Blauvelt ; 845 Jones i). Davis 317 Jones V. Pease 320 Jones V. Keep 306 Kelsey v. Dallon 372 Killip V. Empire Mill Co 323 Kimbro v. Colgate 365 Lambert «. Whitelock 320 Latham v. Smith . . 316, 318, 319, 820, 327 Lewis V. Campau 208 Lee V. Chadwick 32, 38, 34 Lewis V. Randall 306 License Tax Cases 269 In re Lippman 38 Mandell v. Pierce 92, 285 Mason v. Cheney 307, 323 Maynard i>. Johnson 316, 318 Magee v. Denton 300 In re Meador & Brother. ..32, 33, 34, 199 Mechanics & Farmers Bank of Al- bany 11. Townsend 281. Miller et al. ®. Morrow. .• 323 Miller v. Henderson 318, 353 Miller v. Larmon 317, 343 Musselman v. Mauk 306 McAfferty v. Hale 320, 322 McBride B. Doty. 308,318,333,350 McCreedy t. Callahan 308 McGovern et al. v. Hoesbeck. . . . 316, 342 McGuire d. Commonwealth 269 Mudd v. McElvain 324, 327 McKnight «. McCulloch 336 Myei-s V. Smith.. . .■ 312, 322, 386 In re Myrick 353 Nave et al i). King 309 Nelson v. Carman 92 New Haven & Northampton Co. ■!). Quintard. ..316, 317, 318, 336 O'Reilley v. Good 68 Pacific Nat. Ins. Co. ■». Soule. .35, 92, 384 Pacific Bank ». De Eo. ; 336 Patterson «. Eames 338 Prather ji. Pritchard 348 Pervear v. Commonwealth 369 Perry v. Newcome 32, 34, 1 99 Plessinger «. Depuy 328 In re Philips 33, 33 Pope!). Bums 319, 839 Pullan et al. «. Kinsinger et al. . . . 93 Ritter v. Brendlinger 330 Roback v. Taylor 93 Bobbins i>. Deverill 331 Roberts «. Murray . 328 Satterlee v. Bliss 354 Sayles v. Davis 309, 345 Shaefer v. Ketchum 92, 114 Sawyer v. Parker 317, 323 States. Elder "...269 State 11. Garton 309, 841 State ». Haynes 817 Stanwood ii. Green et al. . 33, 34, 199 Stark ■». Bossier ' 328 Stevens ». Mack 373 Schermerhom v. Burgess . . . 817, 333 Sime et al. v. Howard et al 345 Smith V. Short 306 Smith «. Waters 307, 342 Smith V. Averill 101 Sowell V. Sowell's Admr. 353 In re Strouse 33, 34 Sykes ». Bates 330 Thayer v. Barney 317 Teagarden ». Grover et al 313 The Peoria Marine and Fire Ins. Co. V. Perkins 333, 335 Tripp et al. v. Bishop 333 Toledo, Logansport & Burlington R. R. Co. ». Nordyke 343 Toby 11. Chipman 316 Towne v. Bossier 328 Thompson v, Wilson 338 Trull !). Moulton 317, 318 IT. S. V. Allen et al. . .78, 79, 80, 356 U. 8.11. Abott 339 U. S. ■!). Auja 243 IT. S. V. Barney 309 U. S. V. Balto. &. O. E. R. Co.. .317, 319, 385 U. S. ■». Casks (46) 100 V. 8.V. Cask (1) 196, 356 U. 8.11. Casks (8) 188 U. S. e. Casks (138) 181, 356 TJ. S. ». Callicott 78, 79, 80, 258 U. B. 1). ChassoU 868 TjISt op oases. XVll TJ. U: u. u. u. u. u. IT. U. V. V. u. u. u. u. u. u. u. u. u. V. V. u. u. TJ. u. TJ. V. V. V. V. V. u. TJ. U. U. u. u. u. u. u. u. IT. u. TJ. U. V. u. u. u. u. u. TJ. TJ. U. PAGE, Hartwell 107, 108 Mathoit 193 Chaffee etal 103 Harris 369 Farmers' Loan & T. Co . .381 Washington Mills 63 Mattingly 101 Walsh 339 Whalan 78,79 Gallons (33,000) 868 Watson et al 189 Blaisdell et al 188 Wangarien &'Son. . . 138, 318 Vaporizer 134 Damiani . 343 Garlinghouse 139, 140 Bbls. (36) 96, 99 Bbla. (37) .... 139, 181, 313, 356 Bbls. (8) 197, 368 Bbls. (50) 188, 195, 196 Bbls. (lu) 193 Bbls. (469) 99 Bbls. (278) 100 Bbls. (8) 368 Bbls. (25) 98 Bbls. (34) 100,368 Bbls. (35) 139, 161, 216 Bbls. (30) 100, 368 Bbls. (7) 97, 101 Bbls. (300) 101 Bbls. (95) 369 Bbls. (100) 368 Bbls. (33) 97 Bbls. (39) 106 Bbls. (78) 188 Bbls. (31) 100 Bbls. (153) 96 Bbls. (13) 368 Bbls. (6) 188 Bbls. (100) 368 Bbls. (20) 100 Bbls. (508) 188, 189 Bbl. (1) 195 Bbls. (56) 99, 100 Bbls. (^96) 98,100,181 Bbls. (300) ....369 Bbls. (69) 101 Bbls. (3) 134 Fleckeetal 152 Develin et al 316, 365 Stem ' 81 Shea 316 McHenry 89 Develin 216,265 England 186 1* PAGE. U. S. V. Fermenting Tubs (6) . . .356, 263 U. S. V. Sperry et al 78 U. S. V. Rectifying Establishment, 181, 194, 196, 197, 256 U. S. V. Rectifying Establishment, 194, 196, 356 U. S. V. Learned 317, 319, 336 U. S. ». Bentz 36 U. 8. V. Cigars (35,000) 368 TJ. S. V. Piece of land 140, 194 U. S. ■». Whiskev, &c 99 TJ. S. V. Simons." 264 U. S. «. risk 63,378 U. S. «). Still (1) 96, 134 U. S. «. McKim & Co 156 U. S. V. Still (1), &c .368 U. S. V. Distillery 194 U. S. V. Smith et al 226 TJ. S. «. Fridenburg 196 IT. S. V. Lindauer 263 U. S. V. Wright et al. 140 U. .8. V. Singer 305 U. S. «. Findlay 36 U. S. B. Fox etal 329 U. 8. V. Howard 216 U. S. «. Hook et al 368 U. 8. 0. Tons of coal (3) 101 U. S. ». Rosenfleld 234 U. 8. V. Frost et al 387, 294 TJ. 8. V. Thorn et al 26 IT. S. V. Blumgart 107, 108 U. S. V. O'Brien 140, 358 U. S. ■». Cohn 250 U. S. 11. Crosby 264 319 TJ. S. V. Hoym 250 TJ. 8. V. Lot Leaf Tobacco 101 U. S. V. Trobe et al 216, 265 U. 8. 11. Mounlgoy 27, 36 TJ. S. V. Smock 101 U. S. V. Strouse 34 TJ. 8. V. Woolheim 253 U. S. V. Cutting 63, 378 TJ. S. ■». Rumsey .36 U. 8. V. Truesdell 316, 236 TJ. 8. V. Quantity of distilled spirits, 99 TJ. 8. V. Quantity of spirits : 103 U. 8. ■». Quantity of distilled spirits, 100 U. S. V. Quantity of spirits. . .96, 99, 195 TJ. 8. V. Quantity of spirits 356 U. S. V. Quantity of spirits. .193,195 U. 8. V. Dutcher 196 TJ. 8. 11. Dutcher et al 196 XVlll LIST OF CASES, PAGE. U. S. V. Fullerton 79 U. S. V. Furlong 161 U.8.s.Tub(l) 369 U. S. V. Cutting Machines (4) . . . . 368 TJ. S. V. Quantity of rags 96 U. S. «J. Sulzburger et al 78, 80 TJ. S. «. Fuers 116 U. S. «. Prussing et al 134 U. S. ■». Mynderse 381 Union Bank v. Hill et al 306 Vail V. Knapp. . . . 807, 308, 338, 350 PAGE.. Veazie Bank v. Fenno 282 Violet D. Heath 343 Voerbeck v. Roe 316 Voight & Co. V. McKaim. . .307, 315 "Walton V. Brien 306. "Warren «. Paul 806 "Wayman v. Torrenson. .816, 819,321 "Wilson V. Carey 819 "Whitehai V. Shickle 316 Wright V. McFaden 333- TABLE SHOWING THE ARRANGEMENT OF THE SEVERAL SECTIONS OF THE ACTS AMENDATORY OF THE ACT OP JUNE 30, 1864, BY PAGES, IN THIS COMPILATION. March 8, 1865, §1. Amendatory of various sections of the act of June 80, 1864, and in- corporated therein. 2. Repealed by act of July 18, 1866, § 9, bis. Do Do Do, 8. 4 5. 19 Do Repealed by act of July 18, 1866, § 9, bis. Do 6. T. ''81 Do Omitted : relates to na- tionat banks exclus- ively. o' /Repealed by act of July Do l5f 18, 1866, § 9, bis. Do 11. 12. RS' Do Repealed by act of July 13, 1866, §9, bis. Do 18. Repealed by act of July 14, 1870, §1. Do 14. 15. 16. IT. 18. 282 362 865 276 Do Do Do Do Expired. Do 19. Repealed by act of July 13, 1866, S 66. Do 20. 6, SI. 22 Jan. 15, 186 Mar. 10, 1866, §1. 1 Amendatory of two sec- i^ tionsof theactofJune 30, 1864, and Incor- Do '-!. porated therein. Do ^■ Amended by act of July Do 4. C 18, 1866, §9, bis., and Do 5. prmted as sections. . . S.'i Julyia, 1866,§1.- Do s Repealed by act of Fel>- Do 4 ruary 8, 1868. Do B Do 6. 1. 360 Do Repealed by act of Feb- Do 8. j ruary 3, 1868. Do 9. Amendatory of various sections of the act of June 30. 1864, and In- corporated therein. Do 10. Practically obsolete. Do 11.. 12. 64 Do Repealed July 14, IS^O, Do 18.....".:: 3,S2 Julyl8,1866,§14 Do 15 Do 16 Do 17 Do 18. Practically obsolete. Do 19 Do 20. Amendatory of section 15, act of March 8, 1865, and so printed. Do 21. Superseded by section 16, act of March 2, 1867. Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do PiGB 102 103 375 876 91 22. 28. 24. 25. 26. 27. 28. 29. 80. 31. J 82. S8. 84.1 85. 86. 37. 40. 41. 44 45. J 46 47. 48. 49., 60. 51. 62., 53., 54.. 65.. 56.. 57.. 68., 69.. 60,. 61. Repealed by act of July 20, 1868. Superseded by section 14, act of March 2, 1867. Repealed by act of July W, 1868. Expired. 112 112 113 114 116 117 117 119 119 122 123 128 128 110 110 108 XX TABLE OP SECTIONS. July IS 1866 eiu PAGE. 18 July 20, 186E Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do Do 84 PAGE. 183 Do 65 110 ■*g :;:. 134 Do 66. 67.. Expired. .. . .. ..870 6 136 Do 7 137 Do 68.. 69.. 70 873 8 140 874 874 143 Do 10 144 July 27, 1866 Feb. 5,186T 2. ^^•■ 8.. 4.. 5.. 6.. 7.. 8.. 9. 10. 11. 12. 18. 14. 15. 10. 17.. 18.- 19. 20. 2t. 22. 28. 24. 25. 26.. 27. 88. 29. 80. 81. 82. 88. 34. 8. 4. ,§!• Jl- 2. 3. 4. B. 6. 7. )U: a 269 Obsolete and repealed by act of July 20, 1868. Repealed by act of July 14, 1870, § 1. 28i Repealed by act of July 14, 1870, § 1. 11 . .. 150 12 151 18 162 Do 14 162 153 Mar. 2,1867 Do 16 164 17 166 18 157 Do 19 168 Do 69 . . . ■ 884 20 161 21 164 25 375 22 166 Do 28 167 Do 64 24 ■. 172 Do Amendatory of various Eections of previous acts, and incorporatr ed therein. Practically obsolete. Eepealed by act of July 20, 1868. Amendatory of various sections of act of June 80, 1864, and incor- porated therein. Repealed by act of July ■ 20, 1868. Ill 175 26 181 27 28 181 182 Do 29 184 Do SO 184 81 185 Do 82 186 83 84 . 186 186 85 86 187 : . . . 187 87 189 Do 88 169 Do 39 40 41 189 Do Repealed by act of July 20, 1868. 77 190 190 Do 42 .... 191 Do 48 44 191 192 Do Do 46 46 194 196 47 196 48 19T Do Repealed by act of July 20, 1868. 77 49 198 50 61 200 200 Do Does not relate to in- ternal revenue. Ill 52 201 68 1. . . 20ff 54 55 208 1 Repealed by act of July J 20, 1868. Does not relate to in- ternal revenue. 376 209 Do 56 210 Do 57 68 59 211 218 214 Mar. 26, 1867 Obsolete. 282 60 .... . . 221 61 221 Do [obsolete. 174 Not printed. Amendatory of various sections of the act of June 30, 1864, and in- corporated therein. ' 276 361 Repealed by act of July 14, 1870, 1 2. 266 62 228 Do 63 .„ 224 64 .* 226 65 226 Mar.81, 1868 66 67 ,.. 227 228 68 282 69 234 Do Do 70 71 72 236 285 286 78 286 Do 74 76 240 Do .... 268 242 Do June 25, 186! July 6,1868 261 174 Amendatory of act of June 26, 1868, and in- corporated therein. 124 76 77 242 ■ 243 78 244 79 245 80 245 July 20, 186f 81 246 124 82 245 Do 129 83 247 TABLE OP SECTIONS. XXI PAGE. July 20, 1868, §84 248 Do 8S 248 Do 86 248 Do 87 250 Do 88 250 Do 89 251 Do 90 262 Do 91 , 252 Do 92 262 Do 98 258 Do 94 258 Do 95 255 Do 96 256 Do 97 257 Do ■ 98 257 Do 99 258 Do 100 259 Do 101 269 Do 102 259 Do 108 261 Do 104 261 Do 105 261 Do 106 262 Do 107 263 Do 108 268 Do 109 . Repealed by act o£ July 14, 1870, § 2. Mar. 11869,11 82 Do 2. Expired. Mar. 8,1869,81 276 Mar. 29.1869,11 205 Apr. 10, 1869, §1 . Amendatory of various sections of act of July 20, 1868, and incor- porated therein. Do 2-! Amendatory of section 155 of act of June SO, 1864, and incorporated therein. PAGE' Apr.lO, 1869, §3 254 July 1,1870,|1 82 July 12, 1870, 1 1 205 July 18, 1870, §1 308 July 14, 1870, 1 1 877 Do 2 377 Do 8 377 Do 4 878 Do 5. Amendatory of section 168 of act of June 30, 1864, and incorporated therein. Do 6...*. 283 Do 7 285 Do 8 290 Do 9 291 Do 10 297 Do 11 297 Do 12 299 Do 18 800 Do 14 300 Do 15 300 Do 16 304 Do 17 804 Do 18 24 Do 19 25 Do 20. Amendatory of section 67 of act of July 13, 1866, and incorporated therein. Do 25 878 Do 27 378 Do 28 224 July 14, 1870, § 1 . Amendatory of Schedule C of act of June 30, 1864, and incorporated therein. July 14, 1870, §1 379 July 14, 1870,11 861 ABBREVIATIONS USED IN THIS WORK. A. L. Beg American Law Register. A. L. Key American Law Eeview. A. L. T. (C. R.) American Law Times, Court Reports. A. L. T. (S. R.) American Law Times, State Reports. Bout Boutwell. Blatch Blatchford's Reports. Bt Benedict's Reports. C. L. N Chicago Legal News. I. R. R Internal Reyenue Record. Pitts. L. J Pittsburg Legal Journal. s. c Same Case. INTERNAL EEVENUE LAW. U. 8. INTERNAL REVENUE LAWS. AN A CT to provide internal revenue to support the government^ to pay interest on the public debt, and for other purposes, approved June 30, 1864, AS SUBSEQUENTLY AMENDED. Duties of Commissioner. Sec. 1. Be it enacted hy the Senate and House of Repre- sentatives of the United States of America in Congress assem- bled, That, for the purpose of suprintending the collection of internal duties, stamp duties, licenses, or taxes, imposed by this act, or which may hereafter be imposed, and of assessing the same, the Commissioner of Internal Revenue, (a) whose annual salary shall be four thousand dollars, shall be charged, under the direction of the Secretary of the Treasury, with prepar- ing all the instructions, regulations, directions, forms, blanks, stamps, and licenses, and distributing the same, or any part thereof, and all other matters pertaining to the assessment and collection of the duties, stamp duties, licenses, and taxes which may be necessary to carry this act into eifect, and with the general superintendence of his office as aforesaid, and shall have authority, and hereby is authorized and required, to pro- vide cotton marks, hydrometers, and proper and sufficient ad- hesive stamps, and stamps or dies for expressing and denoting the several stamp duties, or the amount thereof in the case of percentage duties, imposed by this act, and to alter and renew or replace such stamps, from time to time, as occasion shall re- quire. He may also contract for or procure the printing of requisite forms, decisions, regulations, and advertisements ; but the printing of such forms, decisions, and regulations shall be done at the public printing office, unless the Publip Printer shall be unable to perform the work. 2 18 U. S. IKTEKNAL EEVENUB LAWS. And the Secretary of the Treasury may, at any time prior to the first day of July, eighteen liundred and sixty-five, assign to the office of the Commissioner of Internal Revenue such number of clerks as he may deem necessary, or the exigencies of the public service may require ; and the privilege ot frank- ing all' letters and documents pertaining to the duties of his oflSce, and of receiving, free of postage, all such letters and documents, is hereby extended to said Commissioner. (a) A resignation by a Commissioner of Internal Revenue, to take eifect npon the qualification of his successor, nominated by the President and confirmed by the Senate, has no ofiicial or legal force whatever, nor any operation upon the office, and the President's indorsement of accept- ance thereon does not make the oflBce vacant. 8 I. R. R. 54. Organization of Office of Internal Revenue. [Sec. 64. Ouiy 13, isee.) And he it further enacted, That the ofiice of the Commissioner of Internal Revenue be reorganized so as to include — One Commissioner of Internal Revenue, with a salary of six thousand dollars, and one Deputy Commissioner, with a salary of three thousand five hundred dollars ; which offices are already created, and the duties thereof defined by law ; and to authorize, under the direction of the Secretary of the Treasury, the employment of the following additional officers and clerks, and with the salaries hereinafter specified, namely : Two Deputy Commissioners, each with a salary of three thousand dollars ; One Solicitor, with a salary of four thousand dollars ; Seven heads of divisions, each with a salary of two thousand five hundred dollars ; Thirty -four clerks of class four; forty-five clerks of class three ; fifty clerks of class two ; and thirty-seven clerks of class one; Fifty-five female clerks ; Five messengers, three assistant messengers, and fifteen laborers. And a sum sufficient to pay the additional salaries of officers, clerks, and employes herein authorized is hereby appropriated out of any money in the treasury not otherwise appropriated ; and this section shall take effect from and after the thirtieth day of June, eighteen hundred and sixty-six.] GENERAL PROYISIONS. Commssioner to keep Accounts and give Bond. Sec, 3. And le it further enacted, That it shall be the duty of the Commissioner of Internal Revenue to pay over daily KXJLINGS, DECISIONS, ETC. l9 to the Treasurer of the United States all public moneys which may come into his possession, for which the Treasurer shall give proper receipts and keep a faithful account ; and at the end of each month the said Commissioner shall render true and faithful accounts of all public moneys received or paid out, or paid to the Treasurer of the United States, exhibiting proper vouchers therefor, and the same shall be received and examined by the Fifth Auditor of the Treasury, who shall thereafter certify the balance, if any, and transmit the accounts, with the vouchers and certificate, to the First Comptroller for his decision thereon ; and the said Commissioner, when such accounts are settled as herein provided for, shall transmit a copy thereof to the Secretary of the Treasury. He shall at all times submit to the Secretary of the Treas- ury and the Comptroller, or either of them, the inspection of moneys in his hands, and shall, prior to the entering upon the duties of his office, execute a bond, with sufficient sureties, to be approved by the Secretary of the Treasury and by the First Comptroller, in a sum of not less than one hundred thousand dollars, payable to the United States, conditioned that said Commissioner shall faithfully perform the duties of his office according to law, and shall justly and faithfully account for and pay over to the United States, in obedience to law and in com- pliance with the order or regulations of the Secretary of the Treasury, all public moneys which may come into his hands or possession, and for the safe-keeping and faithful account of all stamps, adhesive stamps, or vellujn, parchment or paper bear- ing a stamp denoting any duty thereon, which bond shall be filed in the office of the First Comptroller of the Treasury. And such Commissioner shall, from time to time, renew, strengthen, and increase his official bond, as the Secretary of the Treasury may direct. Officers to pay oyer Moneys daily. [Sec. 3. (March 3, 1865.) And he it further enacted, That from and after the thirtieth day of June, eighteen hundred and sixty-five, the gross amount of all duties, taxes, and revenues received or collected by virtue of the several acts to provide internal revenue to support the government and to pay the interest on the public debt, and of any other act or acts that may now or hereafter be in force connected with the internal revenues, shall be paid by the officers, collectors, or agents receiving or collecting the same, daily into the treasury of the United States, under the instructions {a) of the Secretary of the Treasury, without any abatement or deduction on account of salary, compensation, fees, costs, charges, expenses, or claims 20 U. S. lUTEKNAL EEVENUB LAWS. of any description whatever, any thing in any law to the con- trary notwithstanding. And all moneys now directed by law to be paid to _ the Commissioner of Internal Kevenue, including those derived from the sale of stamps, shall be paid into the treasury of the United States by the party making such payment ; and a cer- tificate of such payment, stating the name of the depositor, and the specific amount on which the deposit was made, signed by the Treasurer, Assistant Treasurer, designated depositary or proper officer of a deposit bank, and transmitted to and re- ceived by the Commissioner of Internal Eevenue, shall be deemed a compliance with the law requiring payment to be made to the Commissioner, any law to the contrary notwith- standing: Provided, That in districts where, from the distance of the officer, collector, or agent receiving or collecting such du- ties, taxes, and revenues from a proper government depositary, the Secretary of the Treasury may deem it proper, he may ex- tend the time for making such payment, not exceeding, how- ever, in any case, a period of one month.] (a) 1st. A collector, deputy collector, or agent, living in the same city or town with a United States depositary, must deposit his entire receipts at the close of each day. 2d. Where he lives away from a United States depositary, and daily deposits for that reason are impracticable, he shall forward funds for de- posit as often as he receives $1,000, or at least once in each month, irre- spective of the amount received. 3d. All collections must be deposited in a depositary nearest to the point of collection. When two or more depositaries are in the same city or town, he will distribute his deposits according to special instructions from the Treasury Department. The distribution of deposits among de- positaries for the mere purpose of giving each deposit bank its share can- not be allowed. 4tb. Deputy collectors or agents may deposit directly with a United States depositary, to the credit of the Treasurer of the United States, on account of and in the name of their principals. 5th. All officers charged with the collection, reception, or safe keeping of United States moneys, are forbidden to deposit the same, or any portion thereof, in any United States national bank depositary, or in any State or private bank, or with private individuals or bankers, to their private credit, or to the credit of what is known as a " collector's account." All collectors, and their deputies or agents, are required, whenever they place moneys received for public dues in a United States depositary, to cause the same to be credited forthwith to the account of the Treasurer of the United States, and to take proper certificates of deposit therefor, and to forward the same at once to the Treasury Department. The prohibition against keeping a " collector's account " is extended . to all depositaries and depositary banks of the United States. Deputy collectors, or agents, or acting collectors, will take certificates of deposit in the name of the collector whose agent or deputy they 'are, or for whom they are acting. AU moneys derived from compromises of frauds must be disposed of BULINGS, DECISIONS, ETC. 21 as directed in Circular Ko. 38. 3 I. E. R. 29. The same prompt depositing of these moneys is required. All moneys advanced from the Treasury to a collector in his capacity as disbursing agent of the United States must be deposited to his official credit as such disbursing agent, and drawn upon only in such capacity. Deposits of such moneys must be made either with the Treasurer, or some one of the Assistant Treasurers, or regularly designated depositaries of the United States, or with a national bank depositary, when specially author- ized by the Secretary of the Treasury for that purpose, under the act of June 14th, 1866, and not otherwise. 7 I. R. R. 173. . Moneys paid to collectors by delinquent taxpayers in lieu of penalties and forfeitures, or gross receipts paid for unascertained taxes and penalties, should be deposited to the credit of the Secretary of the Treasury, until t}ie amount due the government is ascertained, when he will order it to be placed to the credit of the Treasurer of the United States. While the moneys remain deposited to the credit of the Secretary of the Treasury they should not be reported with the collections on Forms 32, 49, or 51, nor included in the receipt on Form 23J. 8 I. R. R. 205. Whenever a deposit is made, the officer should accompany it with a clear and sufficient statement, showing not only the amount to be placed to the credit of the Treasurer of the TJnited States, but also the source of internal revenue from which the amount is derived. He need not partic- ularize in the certificate of deposit further than the following headings : viz., internal duties, sales of stamps, and also fines, penalties, and forfeit- ures. 3 I. R. R 4. Adams' Express Company, The American Merchants' Union, United States, Southern, Texas, New jersey. Eastern, United States and Canada, National, Central, Hamden, Howard, Hope, and Earle's Express Com- panies, should be employed for the necessary transportation of all moneys or stamps of the Treasury Department ; said transportation to be made for the purposes of depositing the money transported with the Treasurer, or an Assistant Treasurer, or authorized Depositary of the United States ; for transmitting moneys collected on account of internal revenue from deputy collectors to collectors, the Treasurer, Assistant Treasurer, or United States Depositaries ; and for transmitting stamps for spirits, beer, and tobacco, from collectors to their deputies, and for special purposes, and under special circumstances, in accordance with instructions from the Treasury Department. All moneys transmitted should consist of the sum of $1,000, or its mul- tiples as near as possible, and should be sent by the shortest practicable route. ThjB expenses of transportation will be paid by the Treasury De- partment, and not by the collectors. The use of the forms of vouchers and waybills prepared by the Treasury Department to the exclusion of all others is imperatively enjoined. These forms are furnished by the Secretary .of the Treasury, on whom requisitions for them should be made, and are bound in books. No more than one book at a time will be furnished to each officer entitled thereto. Changes in the forms, so as to show the facts in each case, must,be made, th« object being to secure a full statement of the facts pertaining to every transaction. The officers sending or receiving moneys or stamps will certify in this form of vouchers to bills for services rendered, stating the sum transported, its character, between what points and to what office the moneys or stamps were sent, the date, and that the services charged for were actually performed. An oflBcers or agents should carefully count and pack their moneys or stamps to be transported, securing them in strong packages, sealed with their own private seal in at least four places ; and with the amount, their 22 TJ. S. INTBRNAii BBVENUE LAWS. own name and title, and the name and title of the consignee, plainly marked upon the wrapper, and take receipts in the established forms from the express companies for all sums transmitted. 11 I. B. R. 9. Duties of Deputy Commissioner. Sec. 3. And he it further enacted, That the Deputy Com- missioner of Internal Eevenue, whose annual salary shall be twenty-five hundred dollars, shall be charged with such duties in the Bureau of Internal Eevenue as may be prescribed by the Secretary of the Treasury, or as may be required by law, and shall act as Commissioner of Internal Eevenue in the absence of that officer, and exercise the privilege of franking all letters and documents pertaining to the office of Internal Eevenue. Eevenue Agents. [Sec. 20. (March 3, 1863.) And he it further enacted, . That the Secretary of the Treasury may appoint not exceeding three revenue agents, whose duties shall be, under the direction of the Secretary of the Treasury, to aid in the prevention, detec- tion, and punishment of frauds upon the revenue, who shall be paid such compensation as the Secretary of the Treasury may deem just and reasonable, not exceeding two thousand dollars per annum. The above salaries to be paid in the same manner as are other expenses for collecting the revenue.] Eevenue Agents. Sec. 4. (AmeEdefl March 3, 1865, § i.) And he it further enact- ed, That the Secretary of the Treasury may appoint not exceeding ten revenue agents, whose duties shall be, under the direction of the Secretary of the Treasury, to aid in the pre- vention, detection, and punishment of frauds upon the internal revenue, and in the enforcement of the collection thel-eof, who shall be paid, in addition to the expenses necessarily incurred by them, such compensation as the Secretary of the Treasury may deem just and reasonable, not exceeding two thousand dollars per annum. The above salaries to be paid in the same manner as are other expenses for collecting the revenue. Inspectors. Sec. 5. (Amended July 13, 1866, § 9.) And he it further enacted, That the Secretary of the Treasury may appoint inspectors in any assessment district where, in his judgment, it may be necessary for the purposes of a proper enforcement of the in- ternal revenue laws or the detection of frauds; and such BULIIfGS, DB0I8I0HS, ETC. 23 inspectors and revemie agents aforesaid sliall be subject to tbe rules and regulations of the said Secretary, and have all the powers conferred upon any other officers of internal revenue in making any examination of persons, books, and premises which may be necessary in the discharge of the duties of their office ; and the compensation of such inspectors shall be fixed and paid for such time as they may be actually em- ployed, not exceeding four dollars per day, and their just and proper traveling expenses. And any inspector or revenue agent, or any special agent appointed by the Secretary of the 'freasury, who shall demand or receive any compensation, fee, or reward, other than such as are provided by law for or in regard to the performance of his official duties, or shall be guilty of any extortion or willful oppression in the discharge of such duties, shall, upon conviction thereof in any circuit or district court of the Unite.d States, having jurisdiction thereof, be subject to a fine of not exceeding one thousand dollars, or to imprisonment for not exceeding one year, or both, at the discretion of the court, and shall be dismissed from office, and shall be forever disqualified from holding any office under the government of the United States. And one-half of the fine so imposed shall be for the use of the United States, and the other half for the~ use of the person, to be ascertained by the judgment of the court, who shall first give the information whereby any such fine may be imposed. Sec. 6. Rejpealecl July 13, 1866, § 64. Collection Districts. Sec. H . And he it further enacted, That the second sec- tion of an act entitled " An act to provide internal revenue to support the government and to pay interest on the public debt," approved July one!, eighteen hundred and sixty-two, shall remain and continue in full force ; and the President is hereby authorized to alter the respective collection districts provided for in said section as the public interests may re- quire. , [Sec. 2. auiy i, 1862.) And ie it further enacted, That, for the purpose of assessing, levying, and collecting the duties or taxes hereinafter prescribed by this act, the President of the United States be, and he is hereby, authorized to divide, re- spectively, the States and Territories of the United States and the District of Columbia into convenient collection districts, 24 U. S. INTEKKAL EBVENUE LAWS. and to nominate, and, by and with tlie advice and consent of the Senate, to appoint an assessor and a collector for each such district, who shall be residents within the same : Provided, That any of said States and Territories and the District of Columbia may, if the President shall deem it proper, be erect- ed into and included in one district : Provided, that the num- ber of districts in any State shall not exceed the number of representatives to which such State shall be entitled in the present Congress, except in such States as are entitled to an increased representation in the thirty-eighth Congress, in which States the mnnber of districts shall not exceed the number of representatives to which any such State may be so entitled; And provided further. That in the State of California the President may establish a number of districts, not exceeding the number of senators and representatives to which said State is entitled in the present Congress.] Reduction of dumber of Collection Districts. [Sec. 18. Guiy 14, 1870) And ie it further enacted. That the President is hereby authorized to annex to, and unite with each other, two or more adjoining collection districts, when- evei', in his opinion, it will reduce the expenses of collecting the internal revenue, without impairing the efficiency of the service ; and thereupon shall retain but one collector and one assessor for such enlarged district. And the President is also authorized to consolidate in like manner, at his discretion, any two or more adjoining supervisors' districts, and to retain or appoint one supervisor for such consolidated district.] Assessment Districts. Sec. §. (Amended, March 3, 1865, § i ; July 13, 1866, § 9.) And le it fur- ther enacted, That each assessor shall divide his district into a convenient number of assessment districts, which may be changed as often as may be deemed necessary, subject to such regulations and limitations as may be imposed by the Commis- sioner of Internal Pevenue, within each of which the assessor, whenever there shall be a vacancy, shall appoint, {a) with the approval of said Commissioner, one or more assistant assessors, who shall be a resident of such assessment district ; and in case of a vacancy occurring in the office of assessor by reason of death or any other cause, the assistant assessor of the assess-. ment district in which the assessor resided at the time of the vacancy occurring shall act as assessor until an appointment filling the vacancy shall be made. (a) The provision of this section, vesting the power of appointing assistant assessors in the respective assessors, is clearly unconstitutional. 1 I. R. R. 163. KULINGS, DECISIONS, ETC. 25 The acceptance of a nomination to an elective office by any assistant assessor will be taken as evidence that he no longer wishes to retain his position. Assessors should promptly report the name of any assistant who may accept or who may be known to*be seeking any nomination for such office, in order that a successor may 15e forthwith appointed. 4 I. E. B. 63. Appointment of Assistant Assessors. [Sec. 1. (Jan- IS, i866.) Be it enacted, c&c, That the Sec- retary of the Treasury is hereby authorized to appoint any assistant assessors of internal revenue now provided by law.] Reduction of Number of Assistant Assessors. [Sec. 19. guiy 14, 1870.) And ie it further enacted, That as soon as practicable, after the passage of this act, the number of as- sistant assessors employed shall be permanently reduced by the discharge of all officers of that class who are assigned specially to the assessment of any taxes which shall have been abolished by law. And the Commissioner of Internal Revenue shall be required further to reduce the number of assistant assessors in proportion to any reduction of the service of assessment which has been made, or may hereafter be made, by the repeal of any portion of the internal taxes.] Designation of Assistant Assessors for specific Duties. [Sec. 6. (March 2, 1867.) And he it further enacted. That it shall be lawful for the Commissioner of Internal Revenue, whenever he shall deem it expedient, to designate one or more of the as- sistant assessors in any collection district to make assessments in any part of such collection district for all such taxes as may be due upon any specified objects of taxation, and in such case it shall be the duty of the other assistant assessors of such col- lection district to report to the assistant assessor thus specially designated all matters which may come to their knowledge relative to any assessments to be made by him : Provided, That whenever two or more districts or parts of districts are embraced within one county, it may be lawful for such assist- ant assessor or assessors to make assessment any where within such county upon such specified objects of taxation as he may be by said Commissioner required: Provided further. That such assessment shall be returned to the assessor of the district in which such taxes are payable.] Collectors to give Bond. Sec. 9. And he it further enacted. That before any col- lector shall enter upon the duties of his office, he shall execute 26 U. S. INTERNAL KEVBNUE LAWS. a bond (a) for such amount as shall be prescribed by the Com- missioner of Internal Revenue, under the direction of the Secretary of the Treasury, with not less than five sureties to be approved by the Solicitor* of the Treasury, conditioned that said collector shall faithfully perform the duties of his office ac- cording to law, and shall justly and faithfully account for and pay over to the United States, in compliance with the order or regulations of the Secretary of the Treasury, all public moneys which may come into his hands or possession; which bond shall be filed in the office of the First Comptroller of the Treas- ury. And such collector shall, from time to time, renew, strengthen, and increase his official bond,' as the Secretary of the Treasury may direct, with such further conditions as the said Commissioner shall prescribe. («) A collector may use the seal of his predecessor upon cutting the predecessor's name out. It is not considered necessary that the collector's name shall appear upon the seal. 10 I. K. R. 10. Assessors should report in their quarterly returns any change of circum- stances affecting the j)ecuniary responsibility of the sureties of the collec- tors in their respective districts. 10 I. R. R. 13. The condition of the collector's bond is three fold : 1st, That the col- lector shall faithfully discharge the duties of his office; 2d, That he shall pay over to the United States all public moneys received by him ; 3d, That any deputy collector he may appoint shall faithfully discharge the duties of such deputy collector. When the first condition only has been violated, it is not enough to allege generally that the collector has failed to perform all the duties of his office. It is necessary to go farther and state what were the specific duties which he has failed to perform. U. S. D. Thorn et al., 9 I. R. R. 65. The omission to take bonds with good and sufficient sureties, as re- quired by law, may render the collector and his bondsmen liable. This duty is one which requires for its faithful performance the exercise of the utmost care, caution, diligence and vigilance. It is not a mere clerical duty ; it is a duty to be performed not so much in the office as out of it. It is a duty which can only be performed by the collector himself, or by a trusted and experienced deputy for whose acts he is responsible. Of all duties it is the one which cannot be trusted to a mere subordinate. It is for the jury to decide whether the collector, in taking bonds, faithfully dis- charged the duties of his office. U. S. v. Thorn et al., 9 I. R. R. 65. Deputy Collectors. Sec. 1©. And he it further enacted, That each collector shall be authorized to appoint, by an instrument of writing un- der his hand, as many deputies {a) as he may think proper, to be by him compensated for their services, and also to revoke iiny such appointment, giving such notice thereof as the Com- BULINGS, DECISIONS, ETC. 27 missioner of Internal Eevenue shall prescribe; and may re- quire bonds or other securities, and accept the same, from such deputy ; and each such deputy shall have the like authority, in every respect, to collect the duties and taxes levied or assessed within the portion of the district assigned to him which is by this act vested in the collector himself ; but each collector shall, in every respect, be responsible both to the United States and to individuals, as the case may be, for all moneys collected, and for every act done by any of his deputies whilst acting as such, and for ever^ omission of duty. (a) Minors slaould not be appointed to office, for they cannot be bound by their bonds. 10 I. E. E. 6. An inspector cannot act in the double capacity of inspector and deputy coUector. 4 I. R. E. 181. Who must make Returns. Sec. 11. And ie it further enacted, That it shall be the duty of any person, partnership, firm, association, or corpora- tion, made liable to any duty, license, stamp, or tax imposed by law, when not otherwise provided for, on or before the first Monday of May in each year, and in other cases before the day of levy, to make a list or return, {a) verified by oath or afiSrma- tion, to the assistant assessor of the district where located, of the amount of annual income, the articles or objects charged with a special duty or tax, the quantity of goods, wares, and merchandise made or sold, and charged with a specific or ad valorem duty or tax, the several rates and aggregate amount, according to the respective provisions of this act, and according to the forms and regulations to be prescribed by the Commis- sioner of Internal Kevenue, under the direction of the Secre- tary of the Treasury, for which such person, partnership, firm, association, or coi"poration is liable to be assessed. (a) This section simply requires yearly returns of incomes and articles subject to taxation. Yearly returns were thought to be sufficient in ordi- nary cases. But there were persons from whom it was believed that more frequent returns ought to be required, and these were to be provided for in subsequent sections. U. S. v. Mountjoy, 3 I. R. R. 159. No returns required by law, or the instructions to be swoni to, should be received or ffied until they have been thus verified, 7 I. R. R. 187. Revenue officers are not permitted to mnke any charge for preparing the papers which the law requires taxpayers to furnish, and all fees ac- cepted for such servicesvmust be refunded. 10 I. E. E. 193. The publication of the annual list of income returns is prohibited. The public may inspect the list. 11 I. R. E. 113. Criminal proceedings should not be instituted against any person who has filed his application or made his return and has at all times stood ready to pay the tax upon demand. 6 I. R. R. 130. 28 U. S. INTERNAL REVENUE LAWS. All special taxes are to be reckoned from the first day of May, or from the time of commencing the business subject to the" tax, to tbe first day of May following. 7 I. R. E. 58. When Keturns are to be made. [Sec. 1. (March 2, 1867, as amended Feb. 3, i868.) Be it enacted, dsC, That all acts in relation to the assessment, return, collection, and payment of the income tax, special tax, and other annual taxes now by law required to be performed in the month of May, shall hereafter be performed on the corresponding days in the month of March in each year ; all acts required to be performed in the month of June, in relation to the collection, return, and payment of said taxes, shall hereafter be performed on the corresponding days of the month of April of each year.] Duties of Assistant Assessors. Sec. 13. And he it further enacted, That the instruc- tions, regulations, and directions, as hereinbefore mentioned, shall be binding on each assessor and his assistants, and on each collector and his deputies, and on all other persons, in the per- formance of the duties enjoined by or under this act ; pursuant to which instructions the said assessors shall, on the first Mon- day of May in each year, and from time to time thereafter, in accordance with this act, direct and cause the several assistant assessors {a) to proceed through every part of their respective districts, and inquire after and concerning all persons being within the assessment districts where they respectively reside, owning, possessing, or having the care or management of any property, goods, wares, and merchandise, articles or objects lia- ble to pay any duty, stamp, or tax, including all persons liable to pay a license or other duty, under the provisions of this act, and to make a list of the owners, and to value and enumerate the said objects of taxation, respectively, by reference to any lists of assessment or collection taken under the laws of the re- spective States, to any other records or documents, to the writ- ten list, schedule, or return required to be made out and de- livered to the assistant assessor, and by all other lawful ways and means, in the manner prescribed by this act, and in con- formity with the regulations and instructions before mentioned. (a) Assistant assessors should call personally upon those who have not returned their incomes as required by law. If any person is not ^t home when the assistant calls at any time after the first Monday in March, the notice on the back of Form 24 should be filled up and the blank left. It is then the duty of the taxpayer to seek the assistant assessor and deliver his return. 7 I. R. R. 58. The assessor should give definite and positive instructions to his assist- ants in relation to their duties, never avoiding his proper responsibility. EULINGS, DECISIONS, ETC. 29 The assistant assessor should implicitly obey all instructions given by the assessor to the end that there may be an exact uniformity of practice throughout the entire district. 7 I. E. R. 187. Duties of Assistant Assessor where Parties give the necessary In- formation. Sec. id. And he it further enacted. That if any person liable to pay any duty or tax, or owning, possessing, or having the care or management of property, goods, wares, and mer- chandise, articles or objects liable to pay any«duty, tax, or li- cense, shall fail to make and exhibit a list or return required by law, but shall consent to disclose the particulars of any and all the property, goods, wares, and merchandise, articles and ob- jects liable to pay any duty or tax, or any business or occu- pation liable to pay any license, as aforesaid, then, and in that case, it shall be the duty of the oiBcer to make such list or re- turn, which being distinctly read, consented to, and signed and verified by oath or affirmation by the person so owning, pos- sessing, or having the care and management as aforesaid, may be received as the list of such person. i Proceedings in case of Failure to make Returns. Sec. 14. (Amended March 3, i86s, § I ; July 13, 1866, § 9.) And 1)6 it further enacted, That in case any person shall be absent from his or her residence or place of business at the time an assistant assessor shall call for the annual list or return, and no annual list or return has been rendered by such person to the assistant assessor as required by law, it shall be the duty of such assist- ant assessor to leave at such place of residence or business, with some one of suitable age and discretion, if such be present, oth- erwise to deposit in the nearest post-office, a note or memoran- dum, addressed to such person, requiring him or her to render to such assistant assessor the list or return reqiiired by law within ten days from the date of sucli note or memorandum, verified by oath or affirmation. And if any person, on being notified or required as afore- said, shall refuse or neglect to render such list or return within the time required as aforesaid, or if any person, without notice as aforesaid, shall not deliver a monthly or other list or return at the time required by law, or if any person shall deliver or disclose to any assessor or assistant assessor any list, statement, or return which, in the opinion of the assessor, is false or fraud- ulent, or contains any understatement or undervaluation, it shall be lawful for the assessor (a) to summon such person, his agent, or other person having possession, custody, or care of books of account, containing entries relating to the trade or 30 U. S. INTEEKAIi EEVENUE LAWS. business of such persDii, or any other person he may deem proper, to appear before such assessor and produce such book, at a time and place therein named, and to give testimony or answer interro£;atories, under oath or affirmation, respecting any objects liable to tax as aforesaid, or the lists, statements, or returns thereof, or any trade, business, or profession liable to any tax as aforesaid.- And the assessor may sumiflon, as afore- said, any person residing or found within the State in which his district is situated. And when the person intended to be summoned does not reside and cannot be found within such State, the assessor may enter any collection district where such person may be found, and there make the examination herein- before authorized. And to this end he shall there have and may exercise all the power and authority he has or may lawfully exercise in the district for which he is commissioned. The suipmons authorized by this section shall in all cases be served by an assistant assessor of the district where the per- son to whom it is directed may be found, by an attested copy delivered to such person in hand or left at his last and usual place of abode, allowing such person at the rate of one day for each twenty -fiv« miles he may be required to travel, computed from the place of service to the place of examination ; and the certificate of service signed by such assistant assessor shall be evidence of the facts it states on the hearing of an application for an attachment ; and when the summons requires the pro- duction of books, it shall be sufficient if such books are de- scribed with reasonable certainty. , In case any person so summoned shall neglect or refuse to obey such summons, or to give testimony, or to answer inter- rogatories as required, it shall be lawful for the assessor to apply to the judge (i) of the district court, or to a commis- sioner of the circuit court of the United States for the district within which the person so summoned resides, for an attachment against such person as for a contempt. It shall be the duty of such judge or commissioner to hear such application, and, if satisfactory proof be made, to issue an attachment, directed to some proper ofiBcer, for the arrest of such person, and upon his being brought before him, to proceed to a hearing of the case ; and upon such hearing the judge or commissioner shall have power to make such order as he shall deem proper, not inconsistent with the provisions of existing laws for the pun- ishment of contempts, to enforce obedience to the requii;^- ments of the summons, and punish such person for his default or disobedience. 'It shall be the duty of the assessor or assistant assessor of the district within which such person shall have taxable prop- erty to enter into and upon the premises, if it be necessary, of EULINGS, DECISIONS, ETC. 31 sucli person so refusing or neglecting, or rendering a' false or fraudulent list or return, and to make, according to tlie best in- formation which he can obtain, including that derived from the evidence elicited by the examination of the assessor, and on his own view and information, such list or return, according to the form prescribed, of the property, goods, wares, and merchan- dise, and all articles or objects liable to tax, owned or possessed or under the care or management of such person, and assess the tax thereon, including the amount, if any, due for special or income tax ; and in case of the return of a false or fraudulent list or valuation, he shall add one hundred per centum (c) to such tax ; and in case of a refusal or neglect, except in cases of sickness or absence, to make a list or return, or to verify the same as aforesaid, he shall add fifty "per centum to such tax j and in case of neglect occasioned by sickness or absence as aforesaid, the assessor may allow such further time for making and delivering such list or return as he may judge necessary, not exceeding thirty days ; and the amount so added to the tax shall, in all cases, be collected by the collector at the same time and in the same manner as the tax ; and the list or return so made and subscribed by such assessor or assistant assessor shall be taken and reputed as good and sufiicient for all legal pur- poses. {a) A revenue agent is empowered to examine the books and papers of any person whom he may have reason to suspect of attempting to defraud die revenue. The assessor has also the right to examine books and papers, and he may also require their production by a writ of summons, and he may also summon parties and witnesses to appear before him to give tes- timony. His authority in this respect transcends that of a revenue agent. The two officers may proceed separately or together in the investigation of a case. When evidence is obtained, it is the duty of the assessor to judge of its value. The revenue agent cannot make an assessment If the as- sessor connives at fraud, or refuses to make an assessment which evidence clearly requires, or in any other respect fails in his duty, the revenue agent should report the delinquency to the Commissioner. 2 I. R. R. 84. An ijissessor may compel a stockholder and the officers of a corporation to appear and produce testimony and books, so that he can estimate the amount of profits to which the stockholder is entitled. The summons must grow naturally out of some actual case of understatement, or some statement which is false in- the opinion of the assessor. In such examina- tion parties who have conscientious scruples in reference to taking an oath may affirm. 1 I. R. R. 1V2, 180. The assessor may summon a party, and make an investigation into the truth of his return, even after the annual list is transmitted to the collector. 3 I R. R. 150. The summons is not required to be issued in order to enable the asses- sor to assess the legal pehalties for neglect, refusal, or fraud in making re- turns, but may be resorted to if the assessor deem it advisable. The place where the investigation is to be made should be within the district of the assessor who issues the summons. The provision of section 19 provides for the rates at which witnesses should be paid when attending the appeals of assessors. As the practice 32 U. S. IKTEEJfAL KEVBNUE LAWS. of paying witnesses is universal, there seems to be no violence done in con- struing section 19 as applicable to the eases of witnesses summoned under this section. Expenses of this character will have to be paid by the col- lector as disbursing agent. 3 I. R. E. 101. The statute does not prescribe the form, or contents, or manner of service of the summons to be issued by the assessor. 10 I. R. R. 30. The summons should state with reasonable certainty the cause of its being issued, as that the assessor is dissatisfied with the returns, or the like, and the subject-matter of the inquiry. It is not like a mere subpcEna to an ordinary witness to appear and give evidence in court, because that refers to the case pending in court, and thus enables the witness to ascer- tain what is required of him. It should be sufficiently explicit to enable the person summoned to decide whether he is bound to appear or not. Lee v. Chadwick, 11 I. R. p. 133; In re Phillips, 10 I. R. R. 107; s. c. 2 A. L. T. (C. R.) 154 ; Perry v. Newcome, 10 I. R. R. 20. When a person has appeared in obedience to the summons, and the subject of inquiry has been made known to him, he must answer, and can- not then object to the insufficiency of the summons. In re Phillips, 10 I. R. R. 107. The issuing of the summons is not a judicial act. Congress, in using the word " summons," did not intend it to be of the legal dignity of a writ or other judicial process, but simply a notice, and similar in its nature to a summons issued by overseers of roads, requiring persons to attend with the necessary implements, and to work upon the public highways. In re Jleador & Brothers, 10 I. R. R. 74 ; s. c. 3 A.-L. T. (C. R.) 140 ; In re Doll, 11 I. R R. 36. 4 The acts of Congi'ess and of the legislatures of the various States, con- ferring power not only upon committees, but upon officers, to send for per- sons and papers to be examined in furtherance of a stated purpose, have been so long acquiesced in, and the power so frequently exercised, without the right having been seriously questioned in the courts, that the constitu- tionality of the grant of such power to an assessor can hardly be disputed now. Pen'y r. Newcome, 10 I. R. R. 20. The statute authorizes the assessor to examine the taxpayer's books. This is its whole scope and purpose. To effectuate this object, it adds agents and all other persons having care, custody, or even possession of the books. It is impossible to misunderstand it. No doubt, the books of every person with whom the taxpayer deals contain some entries which relate to his business, and if every such person were summoned, it might be within the bounds of possibility to make up his income, more or less accurately, from a detail of all the bargains which he has made with others. But the law does not contemplate any such absurd mode of proceeding. The trade of each person is to be shown by his own books, and he or his agent, or other person having custody of them, must produce them ; but it is not the intention of the law to require A to produce his own book in order to discover incidentally the trade of B, 0, or D, who may have dealt Tvith him. Lee v. Chadwick, 11 1. E. R. 133. BULISraS, DECISIONS, ETC 33 The grant of tMs power to the assessor is constitutional. The pro- ceeding is a civil proceeding, and in nowise partakes of the character of A criminal prosecution. No offence is charged against the party sum- moned. There is no likeness in principle between the summons and either general warrants or writs of assistance. In re Meador & Brothers, 10 *I. R. R. 74 ; s. c. 2 A. L. T. (C. R.) 140 ; In re Strouse, 11 I. R. R. 183 ; In re Doll, 11 I. R. R. 36. The party must answer, even though his testimony may tend to crimi- nate himself. The disclosures and admissions made in the course of such an examination cannot be used against the party in any criminal or quasi criminal prosecution. It is no objection that the answer may point to other information, not otherwise to be obtained, that may be used against ' him. In re Meador & Brothers, 10 I. R. R. 74 ; s. c. 3 A. L. T. (C. R.) 140; In re Phillips, 10 I. R. R. 107; s. c. 2 A. L. T. (C. R.) 54; In re Strouse, 11 I. R. R. 182 ; In re Doll, 11 I. R. R. 36 ; Stanwood v. J. & T. Green, 11 I. R. B. 134 ; contra, In re Lippman, 9 I. R. R. 1. When the assessor issues a summons, and the party served neglects or refuses to appear to testify under oath, or to produce his books, &c., his power is exhausted. For remedy to compel compliance with the exigency of the summons, he must make appUcatinn in the prescribed manner to a judge or a commissioner. In re Meador & Brothers, 10 I. R. R. 74 ; s. c. 2 A. L. T. (0. R.) 140 ; Lee ». Chadwick, 11 1. R. R. 133. The assessor has no power to summon a party before him after he has transmitted his annual list to the collector ; and a party so summoned is under no obligation to answer any question put to him. There should be some limit of time beyond which the inquisitorial power of the assessor to examine into all the private business transactions of every person should not be exercised. In re Brown, 8 I. R. R. 13i. No inquiry can be made in regard to returns that were rendered before the passage of this act. In re Brown, 3 1. R. R. 134. The use of any entries in books and of any testimony given is solely to furnish evidence for making a true return. If there are no entries in any book of account in the possession, custody, or care of the party summoned relating to his trade or business during the period named in the summons, he is not bound to produce them. But if there are any such entries, he is bound to produce the books. He is not obliged to submit the books, or any of them, at once to the inspection of the assessor, or of any other person. The entries, and not the books, are the things sought for. by the section. When the books are brought, the party summoned must appear with them, under the summons, to give testimony. He must then be asked whether there are any such entries as the summons specifles. If he says there are, he must then be asked to exhibit any entry or entries relating to a particular point or matter to be named in the inquiry within the scope of the summons as to subject-matter and time. Such inquiries must be -answered. In re Lippman, 9 L R. R. 1 ; In re Strouse, 11 1. R. R. 182. (5) The provisions of this section are not inconsistent with other exist- 34 TJ. S. rSTTERNAIi KEVBl^rUE LAWS. ing laws for the purusliineiit of contempts. The question of contempt will only arise for consideration when some process or lawful command of th& judge is disobeyed. In re Meador & Brothers, 10 I. E. E. 74 ; s. c. 2 A. L. T. (C. E.) 140. A merely " imaginary case " for the exercise of this power to summon ought not to be countenanced. To institute a proceeding or action, not to determine a right or controversy, but to deceive the court and raise a prej- udice against third persons, is a contempt. A public officer is presumed to act in obedience to his duty until the contrary appears. In re Meador & Brothers, 10 I. E. E. 74 ; s. c. 2 A. L. T. (C. E.) 140 ; In re Strouse, 11 I. E. E. 182 ; Slanwood «. J. & T. Green, 11 I. E. E. 134. The judge need not in aU cases proceed to hear the application ex parte, and issue or refuse the attachment, as may appear to be just on such hearing. The povrer to issue the attachment includes the power to notify the respondent to appear and show cause against it, whenever such a course seems most reasonable. Lee e. Chadwick, 11 I. E E. 133. The proceedings for the attachment may be quashed for irregularities apparent upon their face. In re Doll, 11 I. E. E. 36. The petition for the attachment may be amended. The proceeding is a civil, and not a criminal or qiiasi criminal action. Lee i). Chadwick, 11 L R. R. 138. If a person is of the opinion that a demand upon him is not authorized by law, it is his right to refuse compliance until the question shall be de- termined by the proper tribunal, and in the mode prescribed by law, and his non-production of the books and papers under such circumstances is by no means to be taken as an indication that he has been guilty of any omission or violation of the law. No doubt the court has power to pun- ish a willful neglect or refusal to testify in this as in all other cases, but no judge would fine or imprison a person for vindicating his supposed rights in good faith. Lee v. Chadwick, 11 I. E. E. 183 ; Stan wood v. J. & T. Green, 11 I. E. E. 184; s. c. 17 Pitts L. J. 153. A supervisor of internal revenue may compel obedience to his sum- mons in the same manner as an assessor. Perry*. Newcome, 10 1. E. E. 20 ; In re Meador & Brothers, 10 I. E. E. 74; s. c. 2 A. L. T. (0. E.) 140. QuiBre. Can Congress invest the commissioner with the authority, in a proceeding originally instituted before him, to summarily commit a citi- zen for an alleged contempt? This is an exercise of the judicial power which under the Constitution cannot be intrusted to an officer appointed and holding his office in the manner in which commissioners are appointed and hold their offices. In re Doll, 11 I. E. E. 86. No writ of error will lie to review the decision of the judge on this ap- plication for an attachment. In re Meador & Brothers, 10 I. E. E. 74; s. c. 2 A. L. T. (C. E.) 140. There is no law which authorizes the payment of an assistant assessor's traveling expenses or any other pay while in attendance as a witness be- fore a United States commissioner or United States court than the per diem and mileage allowed to ordinary witnesses. 111. E. E. 113. RULINGS, DECISIONS ETC. 35 • (c) The penalty imposed by the provisions of this section applies only to returns which should be entered upon the annual list. The assessed pen- alty is to be assessed upon the amount of tax found to be due and forms a part of the tax to be paid by the taxpayer, no portion of which is to be awarded to an informer as compensation for his services. 3 I. R. R. 60. The assessor has no discretion, but must add the preseribed penalty, 11 I. R. R. 106. Returns to be made in Le^al-Tender Currency. [Sec. 3. (March lo, i866, as amended July 13, 1866.) And he it further enacted, That it shall be the duty of all persons required to make returns or lists of income and articles or objects charged with an internal tax to declare in such returns or lists whether the several rates and amounts therein contained are stated ac- cording to their values (a) in legal-tender currency or accord- ing to their values in coined money ; and in case of neglect or refusal so to declare to the satisfaction of the assistant assessor receiving such returns or lists, such assistant assessor is hereby required to make returns or lists for such persons so neglecting or refusing, as in cases of persons neglecting or refusing to make the returns or lists required by the acts aforesaid, and to assess the tax thereon, and to add thereto the amount of penal- ties imposed by law in cases of such neglect or refusal. And whenever the rates and amounts contained in the returns or lists as aforesaid shall be stated in coined money, it shall be the duty of each assessor receiving the same to reduce such rates and amounts to their equivalent in legal-tender currency, ac cording to the value of such coined money in said currency for the time covered by such returns. And the lists required by law to be furnished to collectors by assessors shall in all cases contain the several amounts of taxes assessed, estimated, or valued in legal-tender currency only.] (a) This section denies to a person who has received in coined money, incomes, or other moneys subject to tax or duty, tlie right to return the amount thereof in the currency in which it was actually received and to pay the tax or duty thereon in legal-tender currency. It requires that the difference between coined money and legal-tender currency shall be added to the return when made in coined money, and that he shall pay the tax or duty upon the amount thus increased. Congress may prescribe the basis, fix the rates, and require payment as.it may deem proper. Within the limits of the Constitution it is supreme in its action. No power of su- pervision or control is lodged in either of the other departments of the government. Pacific Ins. Co. ». Soule, 9 I. R. R. 185. Penalty for Fraudulent Returns. Sec 15. And he it further enacted, That if any person shall deliver or disclose to any assessor or assistant assessor ap- 36 U, S. INTBENAL BEVENUE LAWS. ♦ pointed in pursuance of law any false or fraudulent list, return, account, or statement, with intent to defeat or evade the valu- ation, eniuneration, or assessment intended to be made, or if any person who, being duly summoned to appear to testify, or to appear an^ produce such books as aforesaid, shall neglect to appear or to produce said books, he shall, upon conviction thereof before any circuit or district court of the United States, be fined {a) in any sum not exceeding one thousand dollars, or be imprisoned tor not exceeding one year, or both, at the discretion of the court, with cos'ts of prosecution. {a) This section applies to both yearly and monthly returns. U. S. «. Mountjoy, 3 I. R. R. 159. When persons who are partners in business make and sign a false re- turn in thfir partnership name, they may be jointly indicted. The return ■was their joint act. If the return is false, they committed a joint offence and may be jointly indicted. U. S. «. Mountjoy, 3 I. R. R. 159. A party cannot be tried both for perjury and for a false return as to the same return. The government must elect as to which it will prosecute. U. S. V. Rumsey, 5 I. R. R. 93. When the statute which created the offence is repealed, the crime and its penalty are abrogated. The offence is gone, and no one can be punished for what is not a crime at the time of punishment. Nothing is more cer- tain than that if a statute creating an offence is repealed, all proceedings under it fall. The act is no longer an offence ; it cannot be indicted ; it cannot be punished ; it is taken from the penal code absolutely. U. S. v. Finlay, 9 1. R. R. 99. Neither the oath nor the subscription to the return are needed to con- stitute a fraudulent return. If a party makes a return, knowing its con- tents to be untrue, and intending that it shall be acted upon by the officers- of the government, an indictment will lie. U. S. v. Bentz, 7 I. R. R 35. A return upon an old form which is not in compliance with the present law and the forms prescribed thereunder is no return, and no indictment will lie for making it. U. S. ». Mountjoy, 4 I. R R. 9. Other retm-ns than that in which the indictment is founded are ad- missible in evidence to show the defendant's fraudulent intent in making _ that return. The several returns are parts of a connected series of trans- actions forming the general business of the defendant, and, so far from be- ing foreign to the case, is what both parties ought to desire to produce as being best calculated to elucidate the truth and affording the defendant the best opportunity of vindicating himself if innocent of fraud. It is admis- sible to show that the return on which the indictment is founded is not ex- ceptional. IT. 8. «. Rumsey, 5 I. R. R. 93. The limitation of fifteen months contained in section 30 does not affect the enforcement of the penalty provided for in this section. The failure of the assessor to assess the 100 per cent, penalty under section 14 does not relieve the guilty party from prosecution and punishment. 6 I. R. R. 155. BULIKGS, DECISIONS, ETC. 37 When Property is owned by Parties wlio do not Reside in tlie District. Sec. 16. And he it further enacted, That whenever there shall be in any assessment district any property, goods, wares, and merchandise, articles or objects, not owned or pos- sessed by, or under the care or management of, any person within such district, and liable to be taxed as aforesaid, and no list of which shall have been transmitted to the assistant asses- sor in the manner provi(Jed by this act, it shall be the duty of the assistant assessor for such district to enter into and upon the premises where such property is situated, and take such view thereof as may be necessary, and to make lists of the same, according to the form prescribed, which lists being subscribed by the said assessor, shall be taken and reputed as good and sufficient lists of such property, goods, wares, and merchandise, articles or objects as aforesaid, for all legal purposes. Duties of Parties wlio own Property out of tlieir Collection District. Sec. 17. And he it further enacted, That any owner or person having the care or management of property, goods, wares, and merchandise, articles or objects, not lying or being within the assessment district in which he resides, shall be per- mitted to make out and d'eliver the list thereof required by this act (provided the assessment district in which the said objects of duty or taxation are situated is therein distinctly stated), at the time and in the manner prescribed, to the assistant assessor of the assessment district wherein such person resides. Andil^ shall be the duty of the assistant assessor who receives any such list to transmit the same to the assistant assessor where such objects of taxation are situate, who shall examine such list ; and if he approves the same, he shall return it to the assistant as- sessor from whom he recei,ved it, with his approval thereof ; and if he fails to approve the same, he shall make such altera- tions therein and additions thereto as he may deem to be just and proper, and shall then return the said list to the assistant assessor from whom it was received, who shall proceed, in mak- ing the assessment of the tax upon the list by him so received, in all respects as if the said list had been made out by himself. Classification of Lists. Sec. 1 8. And he it further enacted, That the lists (a) aforesaid shall, where not otherwise specially provided for, be taken with reference to the day fixed for that purpose by this act, as aforesaid ; and where duties accrue at other and different , times, the list shall be taken with reference to the time when said duties become due, and shall be denominated annual, 38 U. S. INTEENAIi KBVEKUE LAWS. montHy, and special lists. And tlie assistant assessors, respect- ively, after collecting the said lists, shall proceed to arrange the same, and to make two general lists — ^the first of which shall exhibit, in alphabetical order, the names of all persons, firms, companies, or corporations liable to pay any duty, tax, or license under this act, residing within the assessment district, together with the value and assessment or enumeration, as the case may require, of the objects liable to duty or taxation within such districts for which each such person is liable, or for which any firm, company, or corporation is liable, with the amount oi duty or tax payable thereon ; and the second list shall exhibit, in alphabetical order, the names of all persons residing out of the collection district who own property within the district, to- gether with the value and assessment or enumeration thereof, as the case may be, with the amount of duty or tax payable thereon as aforesaid. The forms of the said general list shall be devised and prescribed by the assessor, under the direction of the Commissioner of Internal Revenue, and lists taken accord- ing to such forms shall be made out by the assistant assessors and delivered to the assessor within thirty days after the day fixed by this act as aforesaid, requiring lists from individuals ; or where duties, licenses, or taxes accrue at other end different times, the lists shall be delivered from time to time, as they be- come due. (a) 1st. Special lists create liability to error, and therefore should be used only upon urgent occasions ; but evtry effort should be made to get every tax liable to be assessed into each successive regular list. 3d. After an assistant assessor has completed his list, he should number the pages, and then he should number the top of the back of each return, which is the foundation for a tax, to indicate the page and the line v^here the tax may be found on his Ust. For instance, for page 1, line 15, mark the return, 1 — 15 ; for page 7, line 29, mark the return, 7 — 29 ; and so of any other pages and lines. And the returns should be regularly filed ac- cording to their numbers when transmitted with the list to the assessor. The assistant assessor should never omit to present all the returns to the assessor, with the list containing the taxes. 3d. The assessor or his chief clerk (who should be perfectly well quali- fied if assigned to this duty) should examine each and every return with positive care, in order to determine the correctness of the principle upon which the tax is^ assessed, and as to whether the rate is correct, and whether the computation, extending, and transfer of result to the list are correct. The assessor should be satisfied that every individual tax which he commits to the collector is correct in every respect. If he has good reason to doubt the correctness of a tax as assessed by an assistant assessor, and no reason to fear ultimate loss to the Government, he should erase it from the list and suspend its assessment until his inquiries have satisfied him -.i s to the proper manner in which the assessment should be made, or whether it should be made at all. 4th. The collector's list on Form 23 should be made up in the assessor's office. Duplicates of Form 97 should not be made op Form 23 by the assist- ant assessors. The original lists made by the assistant assessors, when cor- KULIKGS, DECISIONS, ,BTO. 39 rected by the assessors, are the proper ones to be placed on file in the as- sessor's office. Some assessors have wasted much labor, which ought to have been devoted to other objects, in making up a very nice copy for this purpose. 5th. The time which taxes for business or occupation are to cover should be stated in the list. Returns oa Form 11 should be taken in duplicate in all cases. One of them should be sent to the assessor with the list and filed with the other returns ; the other should be marked on the back, ■" duplicate," and it Diay be given td the taxpayer to be handed to the col- lector, or deputy collector, as the case may be. On the back of all these returns, below the date, should be noted the list in which the tax will ap- pear, thus, " Annual List, 1868," or " April List, 1868," or any other list, as the case may be. 6th. Each individual tax should not be extended into the total column on the list when there is more than one entry against the same party, but -only the aggregate of them all. 7th. Footings of pages should be carried forward from page to page on the lists. Forms 33 and 97 ; but the footings of the several pages for each •division should be recapitulated on the last page. Errors are much easier corrected in the latter than in the former case. 8th. The lists for each annual or monthly tax to be placed on file in the assessor's office, should be fastened together in book form, including the report on Form 38, if any, and any thing else that goes to make up the ■amount for which the receipt on Form 23^ is to be taken ; and recapit- ulation of the aggregates of the several divisions, together with any other items included in the grand total, should be made on the last page, and the grand total aggregate should agree exactly with the receipts on Form 23|- taken therefor. When the receipts on Form 38J are received from the collector, one of them should be attached to the end of book list near the recapitulation, unless a receipt is taken upon the list itself. 9th. Taxes on the list should never be separated on account of their peculiar character, but all taxes for each division of every name and nature that are to be covered by the same receipt, should be entered alphabeti- cally. Articles taxed should always be described in the same language on the lists that they are in the law or schedule of rates. 10th. Immediately after each list has been committed to the collector, the assessor should inform each assistant assessor of all the errors found in his work therefor ; and he should notify him of any and all changes there- in, to the end that he may correct his work accordingly. 11th. All returns, lists, and records should be compared and proved by every practical method, and be checked so as to indicate what has been -done. 12th. All returns for special tax for business or occupation should be ■carefully examined in the assessor's office, and entered into the special tax hook in alphabetical order (for each division separately would be best) be- fore the tax is committed to the collector. All changes in relation to these taxes should be carefully noted in the record book Each party specially taxed in one year should be reported by the proper assistant assessor for the next year, either for taxation, or with the reason why no tax should be assessed, in order that the assessor may have his record full and complete for the entire district. The record should be examined each year, and memoranda made indicating that several parties have again been taxed, or .showing the reason why they have not. 7 I. R. R. 187. The annual list will include the annual taxes upon income and special taxes dating from May 1st in each year. These items, and no others, will •be entered on the annual list. Bach assistant assessor should complete his annual list and forward it to 40 U. S. INTERNAL REVENUE LAWS, the assessor on or before the last day of March in each year, and the com- plete list should be delivered by the assessor to the collector on or before: the 30th day of April in each year. 8 I. R. R. 301. All monthly returns must be made by the taxpayers on or before the 10th day of each month, and all quarterly returns, and all those for which no provision is otherwise made, must be made on or before the tenth day of the month in which the return is required, or succeeding the time when the tax is due and liable to be assessed. All these returns which can be collected by the assistant assessor by the 15th day of each month, should be put on the monthly list and forwarded to the assessor ; and the assessor should complete and deliver his list to the collector on or before the 20th day of each month. Whenever the assessor deems it advisable, or the taxpayer requests it,, any return may be certified to the collector, either singly or upon a special list, in order that payment may be made sooner than if the return was de- layed until the completion of the monthly list. Assessors should retain copies or other complete records of all such returns or lists certified to the collector, and will exercise the utmost care that all such assessments are entered on the next monthly list, and receipted for by the collector on Form 23i. Whenever a change of collectors occurs, the assessor should take receipts- on Form 23J fi-om the out-going collector, for all special returns or lists transmitted to him, and for the unassessed penalties collected by him since his last receipt Such assessments should not be included in the monthly list presented to the new collector. 8 I. R. R. 201. Appeals to Assessors. Sec. 19. (Amended July 13, i866, § 9.) And 1)6 it further en- acted, That the assessor for each collection district shall give notice by advertisement {a) in one newspaper published in each county within said district, and if there be none published in the district, then in a newspaper published in the collection dis- trict adjoining thereto, and shall post notices in at l^ast four public places within each assessment district, and shall mail a copy of such notice to each postmaster in his district, to be posted in his office, stating the time and place within said col- lection district when and where appeals will be received and determined relative to any erroneous or excessive valuations, as- sessments, or enumerations by the assessor or assistant assessor returned in the annual list, and such notice shall be advertised and posted by the assessor and mailed as aforesaid at least ten days before the tiine appointed for hearing said appeals. And it shall be the duty of the assessor for each collection district, at the time fixed for hearing such appeals as aforesaid, to sub- mit the proceedings of the assessor and assistant assessor, and the annual lists taken and returned as aforesaid, to the inspec- tion of any and all persons who may apply for that purpose.. And such assessor is hereby authorized at any time to hear and determine in a summary way, according to law and right, upon any and all appeals which may be emibited against the- proceedings of the said assessor or assistant assessors, and the. EULIiTGS, DECISIONS, ETC. 41 office or principal place of business of the said assessor, shall he open during the business hours of each day for the hearing of appeals by parties who shall appear voluntarily before him : Prmtded, That no appeal shall be allowed to any party after he shall have been duly assessed, and the annual list con- taining the assessment has been transmitted to the collector of the district. And all appeals to the assessor as aforesaid shall be made in writing, and shall specify the particular cause, mat- ter, or thing respecting which a (iecisionis requested, and shall, moreover, state the ground or principle of error complained of. And the assessor shall have power to re-examine and determine upon the assessments and valuations, and rectify the same as • shall appear just and equitable ; but such valuation, assessment, or enumeration shall not be increased without a previous notice of at least five days to the party interested to appear and object to the same if he judge proper, which notice shall be in writ- ing and left at the dwelling-house, office, or place of business of the party by such assessor, assistant assessor, or other person, or sent by mail to the nearest or usual post-office address of said party : Provided further, That on the hearing of appeals it shall be lawful for the assessor to require by summons the attendance of witnesses and the production of books of account in the same manner and under the same penalties as are provided in cases of refusal or neglect to furnish lists or returns. The costs for the attendance and mileage of said witnesses shall be taxed by the assessor and paid by the delinquent parties, or by the dis- bursing agent for the district, on certificate of the assessor, at the rates allowed to witnesses in the district courts of the Uni- ted States. {a) The notice for recemng and determining appeals must be adver- tised in each county, and posted in each assessment district, as directed in this section. 8 I. R. R. 201. The fees for witnesses are $1.50 per day and five cents permile irom the place of residence to the place of trial or hearing, and five cents per mile for returning. 10 Stat. 167. These fees are to be paid by the party who is found to be delinquent ; otherwise by the disbursing agent for the district, on the certificate of the assessor. 8 I. R. R. 203. The power conferred upon the assessor by this section to re-examine and determine assessments and valuations, and rectify the same, is confltned to cases of appeal. An examination of the whole section shows clearly that it has reference only to appeals, and was not intended to be extended be- yond. In re Brown, 3 I. R. R. 134. Assessors to furnish Lists to Collectors. Sec. 90. (Amended July 13, i866, § 9.) And he it further enacted,. That the assessor of each collection district shall, immediately 42 U. S. rNTBEKAI; KEVBNTJB LAWS. after the expiration of the time for hearing appeals concerning taxes returned in the annual list, and from time to time, as taxes become liable to be assessed, make out lists containing the sums pa_yable accoi-ding to law upon every subject of taxa- tion for each collection district ; which list shall contain the name of each person residing within the said district, or owning or having the care or superintendence of property lying within the said district, or engaged in any business or pursuit which is liable to any tax, when sucli person or persons are known, together with' the sums payable by each ; and where there is any property within any collection district liable to tax, not owned or occupied by or under the superintendence of any person resident therein, there shall be a separate list of such property, specifying the sum payable, and the names of the respective proprietors when known. And the assessor making out any such separate list shall transmit to the assessor of the district where the persons liable to pay such tax reside, or shall have their principal place of business, copies of the list of property held by persons so liable to pay such tax, to the end that the taxes assessed under the provisions of this act may be paid within the collection district where the persons liable to pay the same reside, or may have their principal place of business. And in all other cases the said assessor shall furnish to the collectors of the several collection districts, respectively, within ten days after the time of hearing appeals concerning taxes returned iu the annual list, and from time to time there- after as required, a certified copy of such list or lists for their proper collection districts. And in case it shall be ascertained that the annual list, or any other list, which may have been, or which shall hereafter be, delivered to any collector, is imperfect or incomplete in consequence of the omission of the names of any persons or parties liable to tax, or in consequence of any omission, or understatement, or undervaluation, or false or fraudulent state- ment contained in any return or returns made by any persons or parties liable to tax, the said assessor may, from time to time, or at any time within fifteen months {a) tVom the time of the passage of this act or from the time of the delivery of the list to the collector as aforesaid, enter on any monthly or special list the names of such persons or parties so omitted, together -with the amount of tax for which they may have been or shall become liable, and also the names of the persons or parties in respect to whose returns, as aforesaid, there has been or shall be any omission, undervaluation, understatement, or false or fraudulent statement, together with the amounts for which such persons or parties may be liable, over and above the amount EULINGS, DECISIONS, ETC. 43 for which they may have been, or shall be, assessed upon any return or returns made as aforesaid, and shall certify or return said list to the collector as required by law. And all provisions of law for the asceitainment of liability to any tax, or the assessment or collection thereof, shall be held to apply, as far as may be necessary, to the proceedings herein authorized and directed. And wherever the word "duty "is used in this act, or the acts to which this is an amendment, it shall be construed to mean " tax," whenever such construction shall be necessary in order to effect the purposes of said acts. (a.) The investigation may be made at any time within fifteen months after the list'is delivered to the collector, -without regard to the year or time when the assessment was made. 4 I. R. R. 76. Penalties against Assessors and Assistant Assessors. Sec. 31. (Amended July 13, i866, § 9.) And be it further euacted, That every assessor # assistant assessor who shall enter upon and perform the duties of his ofSce without having taken the oath or affirmation prescribed by law, or who shall willfully neglect to perform any of the duties prescribed by this act at the time and in the manner herein designated, or who shall knowingly make any false or fraudulent list or valuation or assessment, or shall demand or receive any compensation, fee, or reward other than those provided for herein for the perform- ance of any duty, or shall be guilty* of extortion or willful op- pression' in office, shall, upon conviction thereof in any circuit or district court of the United States having jurisdiction there- of, be subject to a fine not exceeding one thousand dollars, or to imprisonment for not exceeding one year, or both, at the discretion of the court, and shall be dismissed from office, and shall be forever disqualified from holding any office under the government of the United States. And one-half of the fine so imposed shall be for the use of the United States, and the other half for the use of the informer, who shall be ascertained by the judgment of the court ; and the said court shall alsa render judgment against the said assessor or assistant assessor for the amount of damages sustained in favor of the party injured, to be collected by execution. Salaries of Assessors and Assistant Assessors. Sec. 33. (Amended July I0I866, §9; March 2,1867, §g.) And he it further enacted, That there shall be allowed and paid to the several assessors a salary of fifteen hundred dollars per annum, payable quarterly ; and, in addition thereto, where the receipts of the collection district shall exceed the sum of one hundred 44 V. S. INTEKNAL EEVESTUE LAWS. thousand dollars, and shall not exceed the sum of four hundred thousand dollars, annually, one-half of one per centum upon the excess of receipts over one hundred . thousand dollars. Where the receipts of a collection district shall exceed four hundred thousand dollars, and shall not ^exceed six hundred thousand, one-fifth of one per centum upon'the excess of receipts over four hundred thousand dollars. Where the receipts shall exceed six hundred thousand dollars, one-tenth of one per centum upon such excess ; but the salary of no assessor shall in any case exceed the sum of four thousand dollars. And the several assessors shall be allowed and paid the sums actually and necessarily expended, with the approval of the Commissioner of Internal Revenue, for office rent ; but no account (a) of such rent shall be allowed or paid until it shall have been verified in such manner as the Commissioner shall require, and shall have been audited and approved by the proper ofiBcers of the Treasury Department. And the several assessors shall be paid, after the accoiuit thereof shall have been rendered to and approved by thPproper ofiicers of the treasury', their necessary and reasonable charges for clerk- hire ; but no such account shall be approved unless it shall state the name or names of the clerk or clerks employed, and tlie precise periods of time for which they were re- spectively employed, and the rate of compensation agreed upon, and shall be accompanied by an afiidavit of the assessor stating that such service was actually required by the necessities of his office, and was actually rendered, and also by the affidavit of each clerk, stating that he has rendered the service charged in such account on his behalf, the compensation agreed upon, and that he has not paid, deposited, or assigned, or contracted to pay, deposit, or assign any part of such compensation to the use of any other person, or in any way, directly or indirectly, paid or given, or contracted to pay or give, any reward or com- pensation for his office or employment, or the emoluments thereof; and the chief clerk of any such assessor is hereby authorized to administer, (S) in the absence of the assessor, such oaths or affirmations as are required by this act. And there shall be allowed and paid to each assistant asses- sor five dollars for every day actually employed in collecting lists and making valuations, the number of days necessary for that purpose to be certified by the assessor, and three dollars, for every hundred persons assessed contained in the tax list, as completed and delivered by hi]||to the assessor, and twenty- five cents for each permit granted for making tobacco, snuff, or cigars ; and the said assessors and assistant assessors, re- spectively, shall be paid, after the acco.ont thereof shall have been rendered to and approved by the proper officers of the KULINGS, DBCISIOKS, ETC. 45 treasury, their necessary and reasonable charges for stationery and blank-books used in the discharge of their duties, and for postage actually paid on letters and documents received and sent, and relating exclusively to official business, and for money actually paid for publishing notices required by this act : Provided, That 'no such account shall be approved unless it shall state the date and the particular item of every such ex- penditure, and shall be verified by the oath or affirmation of such assessor or assistant assessor ; and the compensation herein specified shall be in fall for all expenses not otherwise particularly authorized : Provided further. That the Commissioner of Internal Rev- enue may, under such regulations as may be established by the Secretary of the Treasury, after due public notice, receive bids and make contracts for supplying stationery, blank-books, and blanks to the assessors, assistant assessors, and collectors in the several collection districts : Provided further. That the Secretary of the Treasury shall be, and he is hereby, authorized to fix such additional rates of compensation to be made to assessors and assistant assessors in cases where a collection district embraces more than a single congressional district, and to assessors and assistant assessors, revenue agents, and inspectors in Louisiana, Georgia, South Carolina, Alabama, Florida, Texas, Arkansas, North Carolina, Mississippi, Tennessee, California, JSTevada, and Oregon, and the Territories, as may appear to him to be just and equitable, in consequence of the greater cost "of living and traveling in those States and Territories, and as may, in his judgment, be necessary to secure the services of competent officers ; but the compensation thus allowed shall not exceed the rate of five thousand dollars per annum. Collectors of internal revenue acting as disbursing officers shall be allowed all bills of assist- ant assessors heretofore paid by them in pursixance of the directions of the Commissioner of Internal Revenue, notwith- standing the assistant assessor did not certify to hours therein, or that two dollars per diem was deducted from his salary or compensation before computation of the tax thereon. (a) The assessor's quarterly account, Form 83, must be transmitted to the Commissioner of Internal Revenue within fifteen days after the close of each quarter. Assessors will debit the United States as follows : Salary (gross amount). Commissions. clerk-hire. Office rent. Express charges. Stationery and blank-books. Advertising and printing. 46 U. S. IJTTEENAL REVENUE LAWS. Assistant assessor's account for postage and stationery on Form 84. Expenses of surveying distilleries. They wiU credit the United States as follows : Salary received of disbursing agent. Clerk-hire received of disbursing agent. Amount of tax on salary. The several charges must, in all cases (except foY salary and clerk-hire) be accompanied by the vouchers, regularly filled up and numbered and in- dorsed to correspond with the names and numbers in the account. All bills should be made out against the assessors in their official capacity. Any accounts and vouchers which are not plainly and correctly stated, and properly receipted, will be suspended and returned for correction. If suspended, corrected vouchers must be furnished with the next quarterly account. The law allows commissions to assessors on the excess over $100,000 of the receipts on the assessments for each fiscal year. The amount thus col- lected is taken from the collector's statement on Form 51, and is certifled by the Commissioner to the Fifth Auditor. If the statements on Form 51 are not promptly and correctly made, the adjustment of assessor's commis- sions must necessarily be delayed, exdept in those districts where the re- ceipts are known to be $1,200,000 or upward per annum. The additional commission of one-fourth ot one per centum on distilled spirits produced subsequent to. July 30th, 1868, will be allowed only as provided by section 28, act July 20, 1868, upon the adjustment of the col- lector's account, and when he shall have returned the books of marginal stubs to the Commissioner of Internal Revenue, and shall have accounted for the tax on the number of gallons represented on the stamps and coupons that wore contained in said books. The proper vouchers for postage are the receipted bills of the post- master, showing the number and amount of each denomination of stamps purchased during the quarter, and the date of purchase. The bills of assistant assessors for postage must be accompanied by the receipt of the postmaster, and be rendered on Form 84. In all cases the actual number of each denomination of stamps used and on hand must be stated. Receipted bills, as vouchere, will be required for aU payments made by assessors on packages forwarded or received by express. Payments made for express charges during the quarter may be entered in one bill, with date and amount of each payment duly receipted by the agent of the express company ; or the assessor may make his bill of the same items, which, with his receipt and the certificate of said agent that the bill has been by him compared with the accounts of the express com- pany, and is correct, and has been paid, will be a sufficient voucher. Notices of appeals sTiould be published in only one newspaper in any county, as provided in section 19 ; but whenever a district is wholly within one county, as in New York and some other citie?, said notice may be pub- lished in two newspapers. The first voucher for office rent must be accompanied by the assessor's statement of the number and size of the room occupied by him as an office, with the name and number of the street, if any, where the same is located, and in what story of the building. If the assessor is interested, directly or indirectly, in the building in which his office is situated, and in other cases when required, the vouchers for rent must be accompanied by the certificates of two dis- interested persons of some official standing, stating their opinions as to the rent charged as compared with other rents in the same locality. No payments will be made to assessors for furniture, or rent of furniture, or for fuel and lights. RULINGS, DECISIONS, ETC. 47 Vouchers for clerk-hire must be rendered as prescribed in Form 54, and they will be paid monthly by the collector, as disbursing agent of the dis- trict, to the assessor, or on ,his order to the clerk rendering the bill, after the estimate for the same has beep made and approved by the proper officers of the Treasury Department. Stationery and postage-stamps will be furnished to assistant assessors by assessors as far as practicable. When assistants find it necessary to purchase for immediate use, it must be done in limited quantities, and vouchers for the same must be furnished to the assessors, with their ac- counts, on Form 84. These vouchers must state date, quantity, and price of each article named. Assistant assessors will apply to their assessors for blanks and blank-books required by them. The bills of assessors for surveying distilleries must be substantiated by a voucher for each expenditure, except for fare by railway, or other public conveyance, and for meals while traveling. The distilleries sur- veyed must be named, and the places visited stated, and the items of each day's expenses. , Charges for travel by railway, or other public conveyance, must name the conveyance and the distance traveled. An assessor going out of office will transfer to his successor all blanks, blank-books, stationery, postage-stamps, stamped envelopes, and^all other property belonging to the Government, and must file with his final account an inventory thereof, in detail, with the receipt of his successor therefor. 11 I. R. R. 83. An assistant assessor acting as assessor is not entitled to the fees and , emoluments of an assessor, but only to the compensation allowed to him as assistant assessor. 5 I. R. R. 125. (J) The chief clerk of an assessor is authorized to administer such oaths and affirmations, and such only, as the assessor might administer if present, but this can be done only when the assessor is absent ; and the ab- sence should appear upon the certificate, as also the fact that the clerk is the chief clerk of the particular assessor. 3 I. R. R. 3. Penalties against Assessors for receiving Money for Appointment of Assistant Assessors. Sec. 23. And he it further enacted. That if any assessor shall demand of, or receive directly or indirectly from, any as- sistant assessor, as a condition of his appointment to or continu- ance in his said office of assistant assessor, any portion of the compensation herein allowed such assistant assessor, or any other consideration, such assessor so offending shall be sum- marily dismissed from office, and shall be liable to a iine of not less than five hundred dollars upon conviction of said offence in any district or circuit court of the United States of the dis- trict in which such offence may be committed. Accounts of Assistant Assessors. Sec. 34. (Amended July 13, 1866, § 9 ; March 2, 1867, § 9.) And he it further snaeted, That assistant assessors shall make out their accounts (a) for pay and charges allovs^ed by law monthly, specifying each item and including the date of each day of ser- vice, and shall transmit the same, verified by oath or' affirma- 48 U. S, INTERNAL REVENUE LAWS. tion, to the assessor of the district, who shall thereupon exam- ine the same, and, if it appear just and in accordance with law, he shall indorse his approval thereon, hut otherwise shall re- turn the same with objections. Any such account so approved^ may he presented by the assistant assessor to the collector of the district for payment, who shall thereupon pay the same, and, when receipted by the assistant assessor, be allowed there- for upon presentation to the Commissioner of Internal Rev- enue. Where any account, so transmitted to the assessor, shall be objected to, in whole or in part, tiie assistant assessor may appeal to the Commissioner of Internal Revenue, whose decision on the case shall be final. And should it appear at any time that any assessor has knowingly or negligently approved any account, as aforesaid, allowing any assistant assessor a sum larger than was due ac- cordiugto law, it shall be the duty of the Commissioner of In- ternal Kevenue, upon proper proof thereof, to deduct the sum so allowed from any pay which may be due to such assessor ; > or the Commissioner, as aforesaid, may direct a suit to be . brought in any court of conipetent jurisdiction against the assessor or assistant assessor in default for the recovery of the amount knowingly or negligently allowed, as hereinbefore.' mentioned : Provided, That in calculating the commissions of assessors and collectors of internal revenue in districts whence cotton or distilled spirits or other articles are shipped in bond to be sold in another district, one-half the amount of tax received on the^ quantity of cotton or spirits or other articles so shipped shall be added to the amount on which the commissions of such assessors and collectors are calculated, and a corresponding amount shall be deducted from the amount on which the com- missions of the assessors and collectors of the districts to which such cotton or spirits or other articles are shipped are calcu- lated. {a) The bill of assistant assessors to be paid by disbursing agents, win include the per diem compensation and the three dollars per hundred persons assessed, and nothing else. These bills must be made out in duplicate on Form 57, with all the blanks properly filled, and be scheduled on Form 56, with the vouchers for each month's service arranged by themselves, and in the order of the divisions according to the numbers on the Form, and all the columns footed. Assistant assessors will not be allowed for Sundays. In making charges for persons assessed on any list, each person will be counted but once, although his name may be repeated several times on the list. The bills of assistant assessors must be completed in all respects (except the receipt of the assistant assessor) before coming into the hands of the assessor, and should be certified by him only in case they " appear to be just and in accordance with law." The assessor wiU be held to a strict KULINGS, DECISIONS, ETC. .49^ accountability for his action ; and before approving of the bill of an assist- ant assessor, should satisfy himself — , 1. That the number of days charged are not disproportionate to the amount of work performed. B. That the amount and names assessed are entered in the proper blanks. * 3. That only the days upon which service was performed are entered, and the proper salary tax extended. 4. That the affidavit of the assistant assessor is legally executed. It is the duty of the collector to see — 1. That the assistant assessor rendering the bill has been duly qualified. 3. That the certificate of the assessor has been properly filled, the amount for which he certifies being written in the body of the certificate. 3. That the bill is receipted by the assistant assessor. If the collector knows or has reason to believe the account to be erro- neous, he should refer the same to the Commissioner, stating his reasons for so doing, and should inform the assistant assefsor of his action. When the disbursing agent of a district has paid a bill of an assistant assessor which shows upon its face that no names are added to the list, or that the amount of the bin is disproportionate to the amount assessed, the amount so paid will be passed to the credit of the disbursing agent, and be deducted from the salary or commissions of the assessor, unless he furnishes by indorse- ment upon the bill satisfactory reasons for.the omission of names, or for the apparent disproportion between the amount of the bill and the amount of service rendered. If no indorsement is made by the assessor on the first presentation of the bill, the collector should return it to him to afibrd him an opportunity for explanation. Claims of assistant assessors, other than for the per diem compensation and for persons assessed, should not be put on Form 57 or paid by the col- lector, but be sent to the assessor, and if correct, should be included in his quarterly accounts. In case of the death of an assistant assessor the amount due him may be paid to his executor or administrator by whom the bUls should be receipted. Such bills must be accompanied by certified copies of the letters of admin- istration or letters testamentary under which the executor or administrator acts. The certificate of the assessor must be filled up as usual, and the blank for the assistant's oath' should be filled, if possible, by some responsi- ble person other than the assessor having knowledge of the service per- formed. 11 I. R R. 83. The ordinary work upon lists after they have been returned by the as- sistant assessor to the assessor does not form any part of the duty or labor of collecting lists and making valuations. Charges for such clerical ser- vices should not be allowed. Whenever it appears that an assessor has ap- proved any voucher for such clerical services, the amount of payment thereon should be charged to the account of such assessor and deducted from any sum' due him for salary and commissions 10 1 R. E. 6. When the. number of names reported upon an assistant assessor's ac- count is small, or when the amount assessed is not six times as great as the amount charged for services, the assessor should indorse the reasons for his approval upon the account. All valuable services rendered in the line of duty should be paid for, whether such services increase the lists or not. 11 1. R. R. 50. While collectors as disbursin!? agents are authorized to pay the accounts of assistant assessors when certified by the assessor, it does not follow that they are to pay anything and everything so certified. If the certified ac- count contains illegal charges, or does not in other respects conform to the 80 U. S. INTERNAL EEVENUE LAWS. law, it is the duty of the disbursing agent to reject it, or to pay only such items and such amounts as are authorized by law. When a disbursing officer has made an error, he should correct it when making the next pay- ment, or call upon the assistant assessor to correct it. 3 I. R. R. 133. Compensation of Collectors. Sec. 95. (Amended March 3, 1863, § i.) And 1)6 it further enacted, That there shall be allowed to collectors, in full compensation for their services and that of their deputies, a salary of fifteen hundred dollars per annum, to be paid quarterly, and, in addi- tion thereto, a commission of three per centum upon the first hundred thousand dollars, and a commission of one per centum upon all sums above one hundred thousand dollars and not exceeding fom- hundred thousand dollars, and a commission of one-half of one per centum on all sums above four hundred thousand dollars and not exceeding- one million of dollars, and one-eighth of one per centum on all sums above one million of dollars, such commissions to be computed upon the amounts by them respectively collected and paid over and accounted for under the instructions of the Treasury Department. And there shall be further paid,- after the account {a) thereof has been rendered to and approved by the proper oflicers of the treasury, to each collector his necessary and reasonable charges for advertising, stationery, and blank-books used in the performance of his official duties, and for postage actually paid on letters and documents received or sent, and exclusively relating to official business ; but no such account shall be approved unless it shall state the date and the particu- lar items of every such expenditure, and shall be verified by the oath or affirmation of the collector : And provided. That the Secretary of the Treasury be authorized to make such fur- ther allovrances, from time to time, as may be reasonable in cases in which, from the territorial extent of the district, or from the amount of internal duties collected, or from other cir- cumstances, it may seem just to make such allowances. («) Collectoi-s are required to render two quarterly accounts — a revenue account and a compensation account. The revenue account must be rendered on Form 79, within fifteen days after the close of each quarter ; in this account the collector will debit the United States with — 1. The balance due the collector per last account rendered. 3. Errors in former accounts. 3. Money deposited to the credit of the Treasurer of the United States during the quarter. 4. Orders for abatement of taxes issued by the Commissioner of Inter- nal Revenue during the quarter. 5. Amount of taxes collected by successor on lists receipted for by himself. 6. Amount of taxes collected by predecessor on lists receipted for by himself. • BUI>INGS, DECISIONS, ETC. 51 7. Amount of 7^ per cent, discount on beer stamps sold during the quarter (this will be the aggregate of amounts reported on Form 103, for each month of :the quarter). 8. Amount of stamps and coupons returned to the Commissioner during the quarter. 9. Amount of beer stamps, spirit stamps, tobacco and cigar stamps transferred to successor in office. 10. Balance due the United States, viz.. Cash. Tobacco and cigar stamps on hand. Spirit stamps on hand. Beer stamps on hand. , Uncollected taxes. These amounts will agree with the balances reported on Forms 49, 76, 90, 103, and 51, respectively. He will credit the United States with 11. The balance due the United States per last account rendered. 13. Errors in former accounts. 13. Taxes collected on lists receipted for by predecessor in office. 14. Taxes collected on lists receiiJted for by successor in office. 15. The annual and monthly lists receipted for on Form 33-J-. 10, The amount of beer stamps, and tobacco and cigar stamps re- ceived during the quarter. 17. The amount of stamps for distilled spirits received, and excess of gangers' fees collected during the quarter. The balance due the collector will be the collections made upon some list not receipted for by him during the quarter. Under the head of cash deposited, no amount should be included unless the certificate of deposit for the same is dated within the quarter covered by the account. If any item should accidentally be omitted in any account rendered, it may be entered upon a subsequent account under " Errors in former ac- count." A schedule of the certificates of deposit for the quarter must be for- warded with each quarterly account, showing the date, number, and amount of each certificate, the place of deposit, aud the sum of the whole. The schedule may be readily made by copying the monthly returns on Form 49, with a recapitulation aggregating the three months. The compensation and expense account must be rendered on Form 91, within fifteen days after the close of each quarter. In this account the collector will debit the United States with 1. His quarterly salary in gross. , 3. Commissions for the quarter in gross. 3. Stationery and blank books. 4. Postage. 5. Express charges, and expenses for depositing money. 6. Advertising. He will credit the United States with 1. The amount received from the collector acting as disbursing agent for salary. • 3. The amount received for commissions. 3. The tax o^ salary. 4. The tax on commissions as shown by Form 63. A statement of the expenses of administering the office should be made on Form 63, and forwarded with the account. The object of this statement is to enable the auditing officers to ascertain what portion of the commission is subject to tax ; it should include only payments for deputies. 52 U. S. rSTEENAIi KEVBNUB LAWS. clerks, rent, fuel, and lights. The name of each deputy and clerk must be given, together with the rate and amount of his compensation. Commissions for the quarter should be calculated on the amount deposited to the credit of the Treasurer of the United States during the quarter, in the following manner, viz. : Three per cent, on the first $35,000, one per cent, on the next $75,000, one- half of one per cent, on the next $150,000, and one-eighth of one per cent, on all over $250,000. The commissions for the second and third quarters of the fiscal year will be computed the same as for the first quarter, and at the end of the fiscal year, a readjustment will be made at the rates prescribed by law for the year, and the amount found due passed to the credit of the 'collector. The commission for the fraction of a quarter should be computed iji the following manner : As the number of days in the quarter is to the number of days of service, so is $35,000 'to the amount upon which commissions should be computed at three per cent,; three times the amount upon which commissions are to be com- puted at three per cent, will be the amount upon which commissions should be computed at one per cent.; twice the amount uponwhich commissions are to be computed at one per cent, will be the amount upon which commissions are to be computed at one half of one per cent.; and the remainder will be the amount upon which commissions should be computed at one-eighth of one per cent. The additional commissions of one-fourth of one per cent, on distilled spirits produced subsequent to July 30, 1868, jfill be allowed as provided by section 38, Act July 30, 1 868, upon the adjustment of the collector's ac- count, and when he shall have returned the books of marginal stubs to the Commissioner, and shall have accounted for the tax on the number of gallons represented on the stamps and coupons that were contained in said books. Assessors and collectors should make requisitions for stationery quar- terly, when necessary, on Form 3, and are expected to include therein all articles that will be required for themselves and their deputies or assistants during the quarter for which the requisition is made. Supplemental requisitions for any quarter will not be approved except in extraordinary cases, when, for any reason, other than neglect, it becomes necessary ; limited quantities may be purchased for immediate use until a requisition can be filled ? Officers are authorized to purchase ink and mucilage, and their bills, if reasonable, will be allowed. Collectors are authorized to furnish store-keepers with such articles of stationery as they may require for their official duties. Gangers will be supplied with stationery at the expense of the United States. Vouchers for stationery, blank books, postage, expressage, depositing money and advertising, must be entered on Form 85, and the affidavit on the Form must be made. The bills must, in all cases, be made out in detail, showing the date, price, quantity, and character of each article pur- chased or expense incurred, and be receipted. Bills given by a firm must be receipted by a member of the firm ; the receipt of a clerk will not be accepted ; express bills may be receipted by a regular agent of the com- pany. The proper vouchers for postage are the receipted bills of the postmaster; these should show in detail the date, number, and amount of each kind of stamps purchased during the quarter. The receipt of a deputy collector for postage will not be accepted unless*accompanied by the receipted bill of a postmaster; in all cases, the actual number of each denomination of stamps used and on hand must be stated with the bills. Bills for depositing money will not be allowed to the collector unless RULIKGS, DECISIONS, ETC. 53 lie shows that it was impossible for him to deposit thrpugh the express companies under contract with the Treasuiy Department. Should it be impossible for a collector to deposit through such express companies, he must send the money to the depositary in the cheapest manner consistent with safety ; the bills should show the amount deposited, the rates charged per thousand, and the points between which it was transported. Collectors should, as far as possible, supply their deputies with station- ery and postage stamps; when deputies are compelled to purchase for immediate use they must obtain receipted bills made out in detail. The same are required of the collector. These should be given to the col- lector. Assessors and collectors must notify the Commissioner of all adrertise- ments which they deem necessary to have published in their several districts, excepting such as are specially required by law, stating the num- ber of newspapers in which they propose .to have the same published, with the number of insertions and cost of the same'; manuscript copies of all hand-bills or other matter not specially required by law must also be sub- mitted to the Commissioner, with a statement of the quantity and cost of printing. The approval of the Commissioner must be obtained before any engagement for such advertising or printing is made, and the date of the letter authorizing the same must be indorsed on the vouchers, or a copy of the letter attached thereto. Vouchers for advertising and printing must be accompanied by cgpies of the advertisements and the advertising rates of each paper, and printed copies of hand-bills and other printed matter. Blanks and blank books will be famished to assessors and collectors by the Commissioner. ■ No bill for printing blank forms, circulars, or blank books, or for binding will be approved, unless authority for the same is first obtained from the Commissioner and a copy of the letter giving the authority is filed with the voucher. Assessors and collectors, however, are authorized to have their assessment lists and Internal Eevenue Record bound in an economical manner for preservation and reference, and the bills therefor will be approved vnthout special permission by letter for the same. Charges for furniture, gold pens, penknives, and for expenses of fitting up offices will not be allowed to collectors or assessors. Assessors and collectors will, at the close of each fiscal year, and at 'such other times as may be required, render to the Commissioner an accouBt or statement showing : 1st. The kind and quantity of stationery, blank books, postage stamps, and stamped envelopes on hand at the close of the preceding year. 3d. The kind and quantity received and purchased by them during the year for themselves and their subordinates. 3d. The quantity of each kind used by themselves and furnished to their subordinates. 4th. The amount of each kind on hand at the time of rendering the statement. This statement should be in such detail as to show the quantity and character of each class of stationery, etc. A collector, on going out of office, must transfer to his successor all blanks, blank books, stationery, postage stamps, stamped envelopes, and all other property in his possession, and must tile with his final account, on Form 91, an inventory thereof, with the receipt of his successor there- for. • Assessors and collectors must retain in their offices duplicates of all accounts, schedules, abstracts, and vouchers which they send to the Com- missioner. 54 U. S. INTEENAL REVENUE LAWS. All accounts transmitted by the assessor or the collector should be dated and signed by the officer who sends them. AU the schedules or abstracts should show the number of the district and the name of the officer. 11 I. E. E. 81. 1. All such collectors of internal revenue as the Secretary of the Treasury may direct to act as disbursing agents — to pay the lawful ex- penses incident to carrying into effect the various acts relative to the assessment and collection of internal revenues — shall discharge their duties as such disbursing agents without increased compensation therefor, and give good and sufficient bonds and securities for the faithful perfoim- ance of their duties as such disbursing agents in such sum and form as shall be prescribed by the First Comptroller of the Treasury and approved by the Secretary of the Treasury. 3. To meet the payments for the expenses of assessing and collecting the internal revenue in' the several districts, money will be transmitted to the duly constituted disbursing agents of said districts at stated periods from appropriations in the United States Treasury. 3. The estimates of amounts required to defray the expenses in the said district, should be ascertained with judgment, and carefully prepared and transmitted monthly in advance to the Secretary of the Treasury. An account current, showing accurately the disbursements of such money for the preceding month, should in all cases accompany this estimate. The Secretary of the Treasury will transmit these estimates of expenses to the Commissioner, who should carefully scrutinize them ; if the pro- posed expenditures are found to be authorized, and judicious in amount the Commissioner should send these estimates for the proper amount to the First Comptroller of the Treasury, which estimates, if found to be correct by that officer, should be transmitted to the Secretary of the Treas- ury for wan-ants to be issued for the money. 3 I. E. E. 4. The estimates of collectors, acting as disbursing agents, on Form 43, are to be made out monthly and transmitted to the Secretary of the Treasury on or before the 5th day of each month. They will be for the amounts required to pa^the salaries of the asses- sor and collector, the pay of assistant assessors, storekeepers and assessors' clerks, for the current month, and the commissions of the collector for the previous month. The assessor wiU make to the collector, before the first of each month, a statement showing the amount needed to pay his clerk hire and assist- ant assessors for that month. Disbursing agents will use the first column for dollars and cents in filling out the amount under each head, leaving the last column blank, to be filled out by the Commissioner, and will, as nearly as possible, enter the exact amount required. The net amount of the salaries of assessor and collector, and of the pay of assistant assessors and storekeepers, must be entered. under their respective headings. Any balance of the disbursing fund remaining on hand should be deducted from the total of the estimate. The amount on which commissions should be computed by collectors is the amount actually deposited during the previous month, and may often differ from the amount passed upon by the Commissioner, from the fact that all the certificates of deposit may not reach him during the month in which the deposits are made ; the difference will be passed to the credit Of the collector upon the quarterly adjustment of his com- pensation account. (Form 91.) In estimating collectors' commissions the following rule should be observed : KUIilNGS, DECISIONS, ETC. 55 For one month the limit is three per cent, on the fa-it $8,333;, one per tent, on the next $25,000, one-half of one per cent, on the next $50,000, and one- eighth of one per cent, on all over $83,338.J. By a ruling of the accountingn officers of the Treasury Department there will be withheld, on monthly estimates, ten per cent, of the amount of commissions computed for the first and second months of a quarter and the total commissions for the third month of the quarter until the adjustment of the quarterly account. The amount allowed on estimates is regarded simply as an advance on account, — for instance, on the estimate for February, ten per cent, of the commissions for January ; on the estimate for March, ten per cent, of the commissions for February; and on the estimate for April the total commissions for March will be withheld. The total amount thus withheld will be allowed and passed to the credit of the collector on the adjustment of his compensation account (Form 91) for the quarter ending March, and he will be paid the same on the next estimate passed upon. Promptness on the part of assessors in reporting to collectors, and on the part of collectors in forwarding their estimates to the Secretary of the Treasury, will insure promptness in the transmittal of their drafts.' The salary of an assessor or collector, by law, is $1,500 per annum or $375 per quarter, and the amount due per month will bear the same pro- portion to $375 that the number of days in the month hears to the num- ber of days in the quarter. In making payments to the collector and assessor for salary, and to assistant assessors and storekeepers, collectors acting as disbursing agents will pay only the net amount due in all cases. No tax should be deducted ffom the collector's commissions, as the amount of tax thereon will be ad- justed in the settlement of the collector's compensation account (Form 91.) No salary tax will be withheld from payments made to assessors' clerks, or fl-om payments by collectors to their clerks or deputies, because they are not regarded as government officers in such a sense as to require the tax to be retained from their salaries; they should return the salaries thus received with their other income to be taxed on the annual list. No deposit should be made for tax on salaries, nor any entry be made of. the same on the account current. The amount found due, when the accounts are adjusted, will be transferred on the books of the Treasuiy to -the credit of internal revenue. The monthly account current (Form 44) should be transmitted to the Commissioner on or before the tenth day of each month, and should be made out for the month for which the estimate is made out and not for the month in which the disbursements were made, — for example, in Form 44, for March, the United States should be charged with — 1. Assessor's salary for March. 3. Amount paid assistant assessor for March. 3. Amount paid storekeepers for March. 4. Assessor's clerk hire for March. 5. Collector's salary for March. 6. Amount paid collector for commissions on amount deposited in February. 7. Any expenses that may have been ordered to be paid. The United States should be credited with— 1. The balance from month of February (if any). 2. The draft sent for the amount allowed on the estimate for March. This is the regular form of the account, and it will be readily seen that the object is to account for each separate draft each month ; this necessitates prompt rendering of all bills of assistant assessors, storekeep- ers and assessors' clerks, as well as prompt payment ; hence, assessors will 56 U. S. INTEENAIi KBVENUB LAWS. see that all bills, which must be approyed by them, are promptly made out and forwarded to the collector for payment. If, by any unavoidable delay, it should happen that bills for services rendered in any month could not be paid until after the Form (44) for that month had been made out and forwarded, they should be entered in the first (Form 44) made out after they are paid, but no efforts should be spared to have all bills paid and entered in the account to which they belong. "When bills are presented by assistant assessors, storekeepers, assessors or assessors' clerks for payment, which are for services in months or part of months covered by former accounts rendered by the collector, the col- lector must certify on the face of each voucher " not charged in any former account current." In no case should a duplicate charge be made in accounts current. This account, accompanied by the proper vouchers and abstracts, should- be sent promptly at the time prescribed; negligence or delay on the part of the collector in forwarding the same will cause delayin send- ing his draft, and may cause the total amount of his estimate to_ be rejected, if the records in the oflSce of the Commissioner show a sufficient amount of money in his hands. 1 1 I. R. E. 83. No appeal lies to the Secretaiy of the Treasury from the decision of the accounting officers upon the collector's account as disbursing agent. 3 I. R. R. 133. Apportionment of Commissions. See. 26. (Amended March 3, 1865, § i ; July 13, j866, § i.) And he if further enacted; Tlh&t in the adjustment of the accountB of as- sessors and collectors of internal revenue which shall accrue after the thirtieth of June, eighteen hundred and sixty-four, and in the payment of their compensation for services after that date, the iiscal year of the treasury shall be observed ; and where such compensation, or any part of it, shall be by com- missions upon assessments or collections, and shall during any year, in consequence of a new appointment, be due to more than one assessor or collector in the same district, such com- missions shall be apportioned (a) between such assessors or col- lectors ; but in no case shall a greater amount of the commissions be allowed to two or more assessors or collectors in the same district than is or may be authorized by law to be allowed to one assessor or collector. And the salary and commissions of assessors and collectors heretofore earned and accrued shall be adjusted, allowed, and paid in conformity to the provisions of this section, and not otherwise ; but no payment shall be made to assessors or collectors on account of salaries or commissions without the certificate of the Commissioner of Internal He venue that all reports required" by law or regulation have been re- ceived, or that a satisfactory explanation has been rendered to him of the cause of the delay. (a) The apportionment should be based upon the amount collected, and the time served by each collector respectively, giving each coUeptor commissions on his collections at each of the different rates prescribed by law on an amount proportionate to the whole amount for the fiscal year,. KULINGS, DECISIONS, ETC. 57 according to the proportion his term of service bears to the whole year ; taking care that no collector, ftom the comparatively large amount of his collections in proportion to his time, shall be given a lower rate of com- missions than another until the full amount for the year at the higher rates shall have been exhausted ; so that the several collectors in office in the same district during the same fiscal year shall receive precisely the same amount of commissions that one would have been entitled to on the same aggregate collections for the year. 11 I. R. R. 83. Receipts to he given by CoUcctors. Sec. Q7. And ie it further enacted, That each collector,, on receiving, from time to time, lists and returns from the said assessors {a) shall subscribe three receipts : one of which shall be made upon a full and correct copy of each list or return, and be 'delivered by him to, and shall remain with, the assessor of his collection district, and shall be open to the inspection of any person who may apply to inspect the same ; and the other two shall be made upon aggregate statements of the lists or re- turns aforesaid, exhibiting the gross amount of taxes to be col- lected in his collection district, one of which, aggregate state- ments and receipts shall be transmitted to the Commissioner of Internal Revenue, and the other to the First Comptroller of the Treasury. (a) All assessors in the several districts, at the close of each month,, should transmit severally to the First Comptroller of the Treasury, and to the Commissioner, statements showing the true amount of the assessments certified by them to the collectors of their several districts for collection. 2 I. R. R. 4. , On or before the 15th day of each month, the collector should make out and furnish to the assessor a detailed statement, on Form 58, of all unassessed penalties and interest received by him during the calendar moflth next preceding, including all shares of penalties belonging to the Government, which are paid by order of court, and then placed to the credit of the Treasurer of the IJnited States by order of the Secretary of the Treasury, the result of compromised suits of which the collector has received notice during the month. The collector should also report on the same Form all taxes which may have been allowed to him as uncollectible, after the same have been collected, and all taxes which may have been collected after the same have been allowed as uncollectible. These detailed reports will be kept on file in the assessor's office, and the amount will be entered on the next monthly list, and included in the aggregate thereof, for which the collector will receipt on Form %Z\. 8 I. R. R. 30. Although returns are required to be made to the assistant assessor by brewers, distillers, and manufacturers of tobacco and cigars, these returns are not to be placed on any assessment list, nor included in the coUector's- receipt, Form 23^. An assessment is only required when beer, spirits, tobacco, or cigars have been removed without stamps. 8 I. R. R. 303. Proceedings by Distraint. Sec. 38. (Amended March 3, 1865, § I ; July 13, i866, § 9.) And he it fwther enacted, That each of said collectors shall, within 58 TJ. S. INTERNAL EEVBNUB LAWS. twenty days (a) after receiving his annual collection list from the assessors, give notice, by advertisement in one newspaper published in each county in his collection district, if there be any, and if not, then in a newspaper published in an adjoining county, and by notifications to be posted in at least four public places in each county in his collection district, that the said taxes have become due and payable, and state the time and place within said county at which he or his deputy will attend to receive the same, which time shall not be less than ten days after the date of snch notification, and shall send a copy of such notice by mail to each postmaster in tlie county, to be posted in his office. And if any person shall neglect to pay, as aforesaid, for more than ten days, it shall be the duty of the collector or .his deputy to issue to such person a notice, to b6 left at his dwell- ing or usual place of business, or be sent by mail, demanding the payment of said taxes, stating the amount thereof, with a fee of twenty cents for the issuing and service of such notice, and with four cents for each mile actually and necessarily trav- eled in serving the same. And if such persons shall not pay the duties or taxes, and the fee of twenty cents and mileage as aforesaid, within ten days after the service or the sending by mail of such notice, it shall be the duty of the collector or his deputy to collect the said taxes and fee of twenty cents and mileage, with a penalty often per centum additional upon the amount of taxes. And with respect to all such taxes as are not included in the annual lists aforesaid, and all taxes the collection of which is not otherwise provided for in this act, it shall be the duty of each collector, in person or by deputy, to give notice and demand payment thereof, in the manner last mentioned, within ten days from and after receiving the list thereof from the assessor, or within twenty days from and after the expiration of the time within which such tax should have been paid ; and if the annual or other taxes shall not be paid within ten days from and after such notice and demand, it shall be lawful for such collector, or his deputies, to proceed to collect the said taxes, with ten per centum additiona,! thereto as aforesaid, by dis- traint (5) and sale of the goods, chattels, or effects, including stocks, securities, and evidences of debt, of the persons delin- quent as aforesaid. And in case of distraint, it shall be the duty of the officer charged with the collection to make, or cause to be made, an account of the goods or eff'ects distrained, a copy of which, signed by the officer making such distraint, shall be left with the owner or possessor of such goods or effects, or at his or her dwelling or usual place of business, with some person of suit- BULINGS, DECISIONS, ETC. 59 able age and discretion, if any such can be found, with a note of the sum demanded, and the time and place of sale ; and the said oflSeer shall forthwith cause a notification to be published in some newspaper within the county wherein said disti'aint is made, if there is .a newspaper published in said county, or to be publicly posted at the post-office, if there be one within five miles, nearest to the residence of the person whose property shall be distrained, and in not less than two other public places, which notice shall specify the articles distrained, and the time and place for the sale thereof, which time shall not be less than ten noir more than twenty days from the date of such notification to the owner or possessor of the property and the publication or posting of such notice as herein provided, and the place proposed for sale shall not be more than five miles distant from the place of making such distraint. And said sale may be adjourned from time to time by said officer, if he shall thiuk it advisable to do so, but not for a time to exceed in all thirty days. And if any person, bank, association, company, or corpora- tion, liable to pay any tax. shall neglect or refuse to pay the same after demand, the amount shall be a lien in favor of the United States from the time it was due until paid, with the interest, penalties^ and costs that may accrue in addition there- to, upon all property and rights to property belonging to such person, bank, association, company, or corporation ; and the collector, after demand, may levy, or by warrant may author- ize a deputy collector to levy, upon all property and rights to property belonging to such person, bank, association, company, or corporation, or on which the said lien exists, for the pay- ment of the sum due as aforesaid, with interest and penalty for non-payment, and also of such further sum as shall be sufficient for the fees, costs, and expenses of such levy. And in all cases of sale, as aforesaid, the certificate of such sale shall transfer to the purchaser all right, title, and interest of such delinqxfent in and to the property sold ; and where such property shall consist of stocks, said certificate shall be notice, when received, to any corporation, company, or association of said transfer, and shall be authority to such corporation, com- pany, or association to record the same on their books and rec- ords, in the same manner as if transferred or assigned by the person or party holding the same, in lieu of any original or prior certificates, which shall be void, whether cancelled or not. And said certificates, where the subject of sale shall be securi- ties or other evidences of debt, shall be good and valid receipts to the person holding the same, as against any person holding, or claiming to hold, possession of such securities or other evi- dences of debt. 60 U. S. INTEENAL, EBVENUB LAWS. And all persons, and officers of companies or corporations, are required, on demand of a collector or deputy collector about to distrain or having distrained on any property or rights of property, to exhibit all books containing evidence or statements relating to the subject or subjects of distraint, or the property or rights of property liable to distraint for the tax so due as aforesaid : Provided, That in any case of distraint for the payment of the taxes aforesaid, the goods, chattels, or effects so distrained shall and may be restored to the owner or possessor, if, prior to the sale, payment of the amount due shall be made*to the proper officer charged with the collection, together with the fees and other charges ; but in case of non-payment as aforesaid, the said officers shall proceed to sell the said goods, chattels, or ef- fects at public auction, and shall retain from the proceeds of such sale the amount demandable for the use of the United States, and a commission of five per centum thereon for his own use, with the fees and charges for distraint and sale, rendering the overplus, if any there be, to the person who may be entitled to receive the same : Provided further. That there shallbe exempt from distraint and sale, if belonging to the head of a family, the school books and wearing apparel necessary for such family ; also arms for personal use, one cow, two hogs, five sheep and the wool there- of, provided the aggregate market value of said sheep shall not exceed fifty dollars ; the necessary food for such cow, hogs, and sheep' for a period not exceeding thirty days ; fuel to an amount not greater in value than twenty-five dollars ; provisions to an amount not greater than fifty dollars ; household furniture kept for use to an amount not greater than three hundred dollars ; and the books, tools, or implements of a trade or profession to an amount not greater than one hundred dollars shall also be exempt; and the officer making the distraint shall summon three disinterested householders of the vicinity, who shall ap- praise and set apart to the owner the amount of property here- in declared to be exempt. (a) Within twenty days after receiving the annual list from the asses- sor, the collector must advertise in one newspaper in each county in his district, and by notices to be posted in at least four public places, and mailed to every postmaster in each county, stating the time and place within said county at which he or his deputy will attend to receive the duties, which time must not be less than ten days after the publication of said notice. At the expiration often days from the advertised time, it is the duty of the collector to serve demands upon all persons who have neglected to make payment. Form 9 has been prepared for this purpose, and for the issuing and service thereof the collector is entitled to a fee of twenty cents, and to four cents for each mile actually and necessarily traveled in serving the same. No travel fee can be charged when the notice is sent by EULINGS, DECISIONS, ETC. 61 mail, and none for the distance traveled in retm*ning when personal service is made. The interest imposed by the statute should always be collected. It is not regarded as a penalty, or as any part of a pei^alty, but as an amount paid for the use of money detained from the United States. If ten days have elapsed between the notice prescribed by this section and the time when a claim for an abatement is first presented to one of the three officers whose duty it is to add a certificate thereto (assistant assessor, assessor, or collector), or the person first applies to one of them for assistance in the preparation of such claim, the penalty, in case such claim is disallowed, should be collected. If, however, such steps were taken before the ten days elapsed, the ten days stopped running, and the period between such steps and an official notice of the rejection of such claim should not be counted. If the taxes are paid within ten days of the notice, exclusive of such period, the penalty should not be imposed. 10 I B. E. 57. If payment is not made within ten days after service of demand, the collector will proceed to collect the duties with the penalty of five per centum, and interest at the rate of one per cent, per month, and the proper costs and expenses -by distraint. No interest is required for a fraction of a month. 8 I. R. R. 201. The collector cannot remit the penalty of five per centum and one per cent, monthly interest. 9 1. R. R. 188. In a case where the United States is a creditor of a bankrupt for taxes, the claim may be enforced in two ways : 1st. By a lien against the property where such lien attached before the proceedings in bankruptcy were commenced. In that case it is proper for the collector to demand, under the authority of a warrant of distraint, possession of the property of the bankrupt, to which such lien attached for the purpose of satislying the warrant, and all lawful charges thereon. ' Should the officers of the bankrupt court refuse to deliver possession, the collector should then submit a motion to the court having jurisdiction of the case in bankruptcy, for an order to make the delivery as demanded. If the court refuse to make such order, but will direct that the claim of the United States be placed at the head of the list, and to be paid before even the costs in bankruptcy, then the collector may accept that order, or he may accept any other orders which the court may make, which will secure the collection of the whole tax and costs. In cases where no such lien has attached, and also where the tax may be secured without resort to the remedy by lien, the collector should ffie the assessment with his certificate of non-payment among the claims against the estate of the bankrapt, with a further suggestion of the right of the governinent to priority among the creditors under sec. 5 of Act March 3, 1797, 1 Stat. 515, as well as by section 28 of the Bankrupt Act. It is safest to make this suggestion in writing on the claim itself, but it may be made otherwise if necessary. 6 I. R. R. 154. A suit may be brought against the collector to recover back money paid under protest on account of duties or taxes erroneously or illegally assessed. The appropriate remedy is an action of assumpsit for money had and received. "Where the party voluntarily pays the money, he is without remedy ; but if he pays it by compulsion of law, or under protest, or with notice that he intends to bring suit to test the validity of the claim, he may recover it back, if the assessment was erroneous or illegal. City of Philadelphia!). Collector, 5 Wall, 720. None of the internal revenue acts contemplate that collectors shall re- 62 U. S. IKTERNAL KEVEKUE liATVS. imburse themselves for the amount of any judgment recovered against them on account of duties illegally.or erroneously assessed and paid under protest. The direction is that all such judgments shall be paid by the Commissioner, including, by the later acts, costs and expenses of suit. A judgment against the collector in such a case is, therefore, in the nature of a recovery against the United States. It is not, therefore, material whether the collectors are required to account daily or monthly, or whether they are required to pay into the Treasury the gross or only the net amount of coUeotions. City of Philadelphia v. Collector, 5 Wall, 720. (b) The fees and charges to be allowed in all cases of distraint and other seizures are as follows : Issuing warrant of distraint $0 50 Service of waiTant 1 00 Distraint without warrant, or seizure for fraud or violation of law . . 1 00 Traveling fees for service of warrant, or for making distraint with- out warrant, or seizure for fraud, etc., going only, for actual travel per mile 10 Custody of goods seized or distrained, allowed only in cases named below, per day of 24 hours for each keeper 2 50 Expenses of removal Amount actually paid. Storage " " Insurance " " Advertising sale by posting notices (not allowed when no notices are posted) 3 00 Advertising in newspaper Amount actually paid. Collector's commissions on proceeds of sale on amount demandable for United States , 5 per cent. Fee on sale of real estate 10 00 Drawing and executing deed 5 00 In no case vrill commissions be allowed to a collector on payments made before sale, as the law does not justify that charge. The fee for custody is allowed only in cases where removal would be attended with great and unnecessary expense, or injury to the property, and where its safe keeping requires a custodian, as in the case of a distil- lery, a tobacco factory, a store containing a large quantity of goods subject to seizure, and like cases. In no case will a merely constructive charge for custody be allowed. When the property can readily and cheaply be moved to and kept in a warehouse owned by responsible business men, at the usual rates of storage, the latter only will be allowed, and no charge for storage will be allowed while the property is so stored. In such case the collector should take the usual warehouse receipt. The fee for drawing and executing a deed to a private purchaser must be included in the bill of costs, and deducted from the proceeds of sale. But when the property is purchased for the United States, the fee for mak- ing and executing the deed to the government should be charged to the government. The collector is entitled to the fee of $10 on the sale of real estate when the property is purchased for the government, and in such case may be in eluded in the collector's bill of costs and expenses. The fees for witnesses are $1.50 per day, and five cents per mile from the place of residence to the place of trial or hearing, and five cents per mile for returning. 10 Stat. 167. These fees are to be paid by the party who is found to be delinquent ; otherwise by the disbursing agent of the district on the certificate of the collector. BULINGS, DECISIONS, ETC. 6S In calculating mileage, the traveling is to, be computed from the place of service, distraint, or seizure, to the office of the officer who makes service or seizure. When a warrant is issued against two or more persona (partners, for instance) for the collection of the same tax, the travel is to be computed from the office or dwelling of the serving officer to the place of service which is most remote, adding thereto the extra travel which is necessary to serve it upon the other. In other cases the distraining officer is allowed to charge for the actual number of miles traveled for the purpose of serving the warrant. Thus, if the officer travels twenty miles to serve four warrants for four separate assessments, serving the first at a distance of five miles, the second ten, the third fifteen, and the fourth twenty, he will charge for five miles in the first case, ten in the second, and so on. When Form 69 is used, it will be a warrant for each tax assessed, ex- cept when two or more assessments against the same person are included in one schedule. In the latter case, if distraint is made at the same time for two or more assessments against the same persons, only one charge for mileage is to be made. Where the officer serving the warrant learns, upon reaching the place where the party recently resided, that he has removed, and follows to his present residence, he is entitled to charge for the entire distance actually traveled in order to complete the service. The issuing of a warrant of distraint is the writing, signing, sealing, and placing the same in the hands of the officer for service. The service of the warrant is not complete in the case of personal property, unless the officer actually takes possession of some piece or article of property. In the case of real estate, the distraining officer should make service of the warrant in the same manner that the sheriff levies execution upon real estate, and thereupon notice must be given as prescribed in section 30, Act June 30, 1864, as amended. Any officer who shall demand or receive any fee, as above prescribed, without the actual performance of the service or work for which it is allowed, will thereby incur the penalties provided for extortion in section 86, Act June 30, 1864. In cases w^re distraint for non-payment of taxes may be legally re- sorted to, but where the officer collects the taxes in person, without actually seizing property, his right to mileage fee for actual travel in going to make the distraint is not defeated by the manner of collection, provided that each collection or payment is made after the officer has gone to make the distraint. 6 I. K. R. 15B. An action in assumpsit- may be maintained to recover money due to the government for taxes by the party sued. U. S. v. Cutting, 3 Wall 441 ; V. S. ». Pisk, 3 Wall, 445. The remedy by distraint given by the statute is not the exclusive remedy. Taxes constitute a personal debt due to the Uni^ted States from the taxpayer independently of any lien therefor. U. S. i). Washington Mills, 6 I. R. R. 146. Property seized for a tax under an act of Congress, and by virtue of a warrant regular upon its face, cannot be replevied. Such suits would delay if not wholly defeat the collection of the internal revenue. O'Reilly V. Good, 43 Barb. 521. Internal revenue tales do not become a lien upon the property of the taxpayer until they are due ; and when they do become a lien, such lien does not take priority of pre-existing liens. 6 I. R. R. 195. ^4: U. S. INTERlfAL EEVENUB LAWS. The levying of an attachment on personal property owned by a person who owes an internal revenue tax, does not aflfeot the lien of the govern- ment for the tax, if the same was due when the attachment was served. 6 I. R. E. 195. MTien Returns shall be made. [Sec. 11. auiyi3,i868.) And be it J^urther enacted, Th&talllistB or returns required to be made monthly, by any person, finn, company, corporation, or party whatsoever, liable to tax, shall be made on or before the tenth day of each and every month, and the tax assessed or due thereon shall be certified or returned by the assessor to the collector on or before the last day of each and every month. And all lists or returns required to be made quarterly, and all other lists or returns for which no provision is otherwise made, shall be made on or before the tenth day of each and every month in which said list or return is required to be made, or succeeding the time when the tax may be due a,nd liable to be assessed, and the tax thereon shall be certified or returned as herein provided for monthly lists or returns. And the tax shall be due and payable on or before the last day of each and every month. And in case said tax is not paid on or before the last day of each and every month, the collector shall add ten per centum thereto : Provided, That notice (a) of the time when said tax shall be- come due and payable shall be given in such manner as shall be prescribed by the Commissioner of Internal Revenue ; and if said tax shall not be paid on or before the last day of the month as aforesaid^ it shall be the duty of said collector to demand pay- ment thereof, with ten per centum additional thgreto, in the manner prescribed by law ; and if said tax and ten per centum additional are not paid within ten days from and after such de- mand thereof, it shall be lawful for the collector or his deputy to make distraint therefor, as provided by law, and so much of section eighty -three of the act of June thirtieth, eighteen hun- dred and sixty-four, as amended by the act of March third, eighteen hundred and sixty-five, as relates to the time of pay- ment and collection of tax, is hereby repealed ; and in all cases of neglect to make such lists or returns, or in case of false and fraudulent returns, the provisi6ns of existing law, as amended by this act, shall be applicable thereto.] (a) Unless notice is given, and demand for jjayment is made priorto the day on which a monthly tax falls due, there is no liability to a penalty for non-payment. 5 I. R. R. 148. Penalty for Failure to pay Tax. [Sec. 8. (Marcii 2, 1867.) And be it further enacted, That here- after for any failure to pay any internal revenue tax at the time EULINGS, DECISIONS, ETC. 65 and in the manner required by law, where such failure creates a liability to pay a penalty of ten per centum additional upon the amount of tax so due and unpaid, the person or persons so - failing or neglecting to pay said tax, instead of ten percentum as aforesaid, shall pay a penalty of five per centum, together with interest at the rate of one per centum per month upon said tax from the time the same became due, but no interest for any fraction of a month shall be demanded.] Proceedings in Case of Sale. Sec. 29. (Amended July 13, 1866, § 9.) And be it further enacted^ That in all cases where property liable to distraint for taxes may not be divisible, so as to enable the collector by a sale of part thereof to raise the whole amount of the tax, with all costs, charges, and commissions, the whole of such property shall be sold, and the surplus of the proceeds of the sale, after satisfying the tax, costs, and charges, shall be paid to the person legally entitled to receive the same ; or if he cannot be found, or re- fuse to receive the same, then such surplus shall be deposited in the treasury of the United States, to be there held for the use of the person legally entitled to receive the same, until he shall make application therefor to the Secretary of the Treasury, who, upon such application and satisfactory proofs in support thereof, shall, by warrant on the treasury, cause the same to be paid to the applicant. And if any of the property advertised for sale as aforesaid is of a kind subject to tax, and such tax has not 'been paid, and the amount bid for such property is not equal to the amount of such tax, the collector may purchase the same in behalf of the United States for an amount not exceeding the said tax. And in all cases where property subject to tax, but Upon which the tax has not been paid, shall be seized upon distraint and sold, the amount of such tax shall, after deducting the ex- penses of such sale, be first appropriated out of the proceeds thereof to the payment of said tax. And if no assessment of tax has been made upon such property, the collector shall make a return thereof in the form required by law, and the assessor shall assess the tax thereon. And all property so purchased may be sold by said collector, under such regulations as may be prescribed by the Commissioner of Internal Kevenue. And the collector shall render a distinct account of all charges in- curred in the sale of such property to the Commissioner of In- ternal Revenue, who shall by regulation determine the fees and charges to be allowed in all cases of distraint and other seizures ; or where necessary expenses for making such distraint or seizure have been incurred, and in case of sale, the said collector shall 66 U. S. INTERNAL EEVENUE LAWS. pay into the treasury the surplus, if any there be, after defray- ing such fees and charges. Sale of Real Estate. Sec. 30. (Amended July 13, 1866, § 9.) And he U further enacted, That in any ease where goods, chattels, or effects sufficient to satisfy the taxes imposed by law upon any person liable to pay the same, shall not be found by the collector or deputy collector, whose duty it may be to collect the same, he is hereby author- ized to collect the same by seizure and sale of real estate ; {a) and the officer making such seizure and sale shall give notice to the person whose estate is proposed to be sold, by giving Mm in hand, or leaving at his last or usual place of abode, if he has any such within the collection district where said estate is situated, a notice, in writing, stating what particular estate is proposed to be sold, describing the same with reasonable cer- tainty, and the time when and place where said officer proposes to sell the same ; which time shall not be less than twenty nor more than forty days from the time of giving said notice. And the said officer shall also cause a notification to the same effect to be published in some newspaper within the county where such seizure is made, if any such there be, and shall also cause a like notice to be posted at the post-office nearest to the estate to be seized, and in two other public places within the county ; and the place of said sale shall not be more than five miles distant from the estate seized, except by special order of the Commissioner of Internal Revenue. At the time and place appointed, the officer making such seizure shall proceed to sell the said estate at public auction, offering the same at a mini- mum price, (b) including the expense of making such levy, and all charges for advertising, and an officer's fee of ten dollars. And in case the real estate so seized as aforesaid, shall consist of several distinct tracts or parcels, the officer making sale there- of shall offer each tract or parcel for sale separately, and shall, if he deem it advisable, apportion the expenses, charges, and fees aforesaid, to such several tracts or parcels, or to any of them, in estimating the minimum price aforesaid. And if no person offers for said estate the amount of said minimum price, the officer shall declare the same to be pur- chased by him for the United States, and shall deposit with the District Attorney of the United States a deed thereof, as herein- after specified and provided ; otherwise, the same shall be de- clared to be sold to the highest bidder. And said sale may be adjourned from time to time by said officer, for not exceeding thirty days in all, if he shall think it advisable so to do. If the amount bid shall not be then and there paid, the officer shall ETXLINGS, DECISIONS, ETC. 67 forthwith proceed to again sell said estate in the same manner ; and, upon any sale and the payment of the purchase money, shall give to the purchaser a certificate of purchase, which shall set forth the real estate purchased, for whose taxes the same was sold, the name of the purchaser, and the price paid therefor ; and if the said real estate be not redeemed in the manner and within the time hereinafter provided, then the said collector or deputy collector shall execute to the said purchaser, upon his surrender of said certificate, a deed of the real estate purchased by him as aforesaid, reciting the facts set forth in said certifi- cate, and in accordance with the laws of the State in which such real estate is situate, upon the subject of sales of real estate un- der execution, which said deed shall be prima facie evidence of the facts therein stated ; and if the proceedings of the officer as set forth have been substantially in accordance with the provis- ions of law, shall be considered and operate as a conveyance of all the right, title, and interest the party delinquent had in and to the real estate thus sold at the time the lien of the United States attached thereto. Any person, whose estate may be.proceeded against as afore- said, shall have the right to pay the amount due, together with the costs and charges thereon, to the collector or deputy collec- tor at any time prior to the sale thereof, and all further pro- ceedings shall cease from the time of such payment. The own- ers of any real estate sold as aforesaid, their heirs, executors, or administratiS'S, or any person having any interest therein, or a lien thereon, or any person in their behalf, shall be permitted to redeem the land sold as aforesaid, or any particular tract thereof, at any time within one year after the sale thereof, up- on payment to the purchaser, or, in case he cannot be found in the county in which the land to be redeemed is situate, then to the collector of the district in which the land is situate, for the use of the purchaser, his heirs or assigns, the amount paid by the said purchaser and interest thereon at the rate of twenty per centum per annum. And any collector or deputy collector may, for the collection of taxes imposed upon any person, or for which any person may be liable, and committed to him for collection, seize and sell the lands of such person situated in any other collection dis- trict within the State in which said officer resides ; and his pro- ceedings in relation thereto shall have the same effect as if the same were had in his proper collection district. And it shall be the duty of every collector to keep a record of all sales of land made in his collection district, whether by himself or his deputies, or by another collector, in which shall be set forth the tax for which any such sale was made, the dates of seizure and sale, the name of the party assessed, and all pro- 68- U. S. INTERNAL EEVBNUE LAWS. ceedings in making said sale, the amount of fees and expenses,, the name of the purchaser, and the date of the deed ; which record shall be certified by the officer making the sale. And it shall be the duty of any deputy making sale as aforesaid, to re- turn a statement of all his proceedings to the collector, and to certify the record thereof. And in case of the death or removal of the collector, or the expiration of his term of office from any other cause, said record shall be delivered to his successor in oifice ; and a copy of evei'y such record, certified by the col- lector, shaU be evidence in any court of the truth of the facts therein stated. And when any lands sold, as aforesaid, shall be redeemed as hereinbefore provided, the collector shall make an entry of the fact upon the record aforesaid, and the said entry shall be evidence of such redemption. And when any property, personal or real, seized and sold by virtue of the foregoing provisions, shall not be sufiicient to satisfy the claim of the United States for which distraint or seizure may be made against any person whose property may be so seized and sold, the collector may, thereafter, and as often as the same may be necessary, proceed to seize and sell, in like manner, any other property liable to seizure of such person until the amount due from him, together with all expenses, sha;ll be fully paid : Provided, That the word " county," wherever the same occurs in this act, or the acts of which this is amendatory, shall be construed to mean also a parish or any other eqiiivalent sub- division of a State or Territory. (ffi) Eeal estate seized for the payment of internal revenue taxes, must be sold -within five miles of where it is located, unless the Commissioner by- special order in each case permits a sale»to be made at a greater distance. 6 I. R. B. 195. (J) The minimum price fixed by this section does not include the tax, but simply the expense of -making the levy and the charges and fees for effecting the sale. 6 I. R. R. 195. When a collector is selling lands for internal revenue taxes, he should bid for and in behalf of the United States, a sum equal to one half of the cash value of the property he is selling, and if no person bids more he should declare the property to be purchased by him for the United States. 10 I. R. R. 5. Whenever and as often as property is purchased by the United States under the provisions of this section, the collector should report the follow- ing particulars : The names of the parties assessed ; the amount, date, and character of the tax ; the date and cause of seizure and sale ; all proceedings of the sale, including the place of the sale, and, if sold more than five miles fi'om the property, the reason therefor and a reference by date, &c., to the Com- missioner's special order ; the sum for which sold and the items com- prised in it ; all entries made in the collector's books or accounts in regard to the sale ; a full description of the property and minutes of the deed, including dates, names of parties, consideration, &c. ; with what district EFLINGS, DECISIONS, ETC. 69 attorney the deed is deposited ; whether it is recorded, and, if so, when and where, naming book and page ; when redeemed, the full particulars of the redemption ; when sold, the fall particulars of such sale, the use and occupation of the property since seizure and sale, and an estimate of its yalue. 8 1. E. E. 203. . When a deed is made after the time for redemption has elapsed, it should contain a recital of the facts set forth in the certificate, and in form be in accordance with the laws of the State in which the real estate is situ- ate, on the subject of sales of real estate under execution. 6 I. R. R. 138. Commissioner to have Charade of Real Estate. [Sec. 4. (March 2, 1867.) And he it further enacted, That the Commissioner of Internal Revenue shall have charge of all real estate which has been or shall be assigned, set off^ or con- veyed, by purchase or otherwise, to the L nited States, in pay- ment of debts arising under the laws relating to internal revenue, and of all trusts created for the use of the United States, in payment of such debts due them ; and, with the approval of the Secretary of the Treasury, may sell and dispose of, at public vendue, upon not less than twenty days' notice, lands assigned or set oif to the United States in pay- ment of such debts, or vested in them by mortgage or other security, for the payment of such debts ; and in cases where real estate has already become the property of the United States by conveyance or otherwise, in payment of or as security for a debt arising under the laws relating to internal revenue, and such debt shall have been paid, together with the interest thereon, at the rate of one per centum per month, to the United States, within two years from the date of the acquisition of such real estate, it shall be lawful for the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, to release by deed, or otherwise convey, such real estate to the debtor from whom it was taken, or to his heirs or other legal representatives.] . Property of Persons not residing in the District. Sec. 31. And l>e it further enacted, That if any collector shall find, upon any list of taxes returned to him for collection, property lying within his district which is charged with any specific or ad valorem tax or duty, but which is not owned, • occupied, or superintended by some person known to such col- lector to reside or to have some place of business within the United States, and upon which the duty or tax has not been paid within the time required by law, such collector shall forthwith take such property into his custody, and shall adver- tise the same, and the tax charged upon the same, in some newspaper published in his district, if any shall be published 70 U. S. INTBENAL EBVENUE LAWS. therein ; otherwise, in some newspaper in an adjoining dis- trict, for the space of thirty days ; and if the taxes thereon, with all charges for advertising, shall not be paid within said thirty days, such collector shall proceed to_ sell the same, or so much as is necessary, in the manner provided for the sale of other goods distrained for the nonpayment of taxes, and out of the proceeds shall satisfy all taxes charged upon such prop- erty with the cost of advertising and selling the same. And like proceedings to those provided in the preceding section for the purchase and resale of property which cannot be sold for the amount of duty or tax due thereon, shall be had with regard to property sold under the provisions of this sec- tion. And any surplus arising from any sale herein provided for shall be paid into the treasury for the beneiit of tlie owner of the property. And the Secretary of the Treasury is author- ized, in any case where money shall be paid into the treasury for the benefit of any owner of property sold as aforesaid, to repay the same, on proper proof being furnished that the person applying therefor is entitled to receive the same. Collection of Taxes from Persons not having Property m the District. Sec. 3S. And he it further enacted, That whenever a . collector shall have on any list duly returned to him the name of any peJTSon not within his collection district who is liable ito tax, or of any person so liable to tax who shall have, in the collection district in which he resides, no sufficient property subject to seizure or distraint from which the money due for duties or tax can be collected, it shall and may be lawful for such collector to transmit a copy or statement containing the name of the person liable to such duty or tax aforesaid, with the amount and nature thereof, diily certified under his hand, . to the collector of any district to which said person shall have removed, or in which hfe shall have property, real or personal, liable to be seized and sold for duty or tax, and the collector of the district to whom the said certified copy or statement shall be transmitted shall proceed to collect the said duty or tax in the same way as if the name of the person and objects of tax contained in the said certified copy or statement were on any list furnished to him by the assessor of his own collection dis- trict ; and the said collector, upon receiving said certified copy or statement as aforesaid, shall transmit his receipt for it to the collector sending the same to him. Report of Collections. Sec. 33. And he it further enacted, That the several col- lectors shall, at the expiration of each and every month after- RULINGS, DECISIONS, ETC. 71 they shall, respectively, commence their collections, transmit to the Commissioner of Internal Eevenue a statement of the collections made by them, respectively, within the month, and pay over monthly, or at such time or times as may be required by the Commissioner of Internal Eevenue, the moneys by them respectively collected within the said term, and at such places as may be designated and required by the Commissioner of Internal Revenue ; and each of the said collectors shall complete the collection of all sums assigned to him for col- lection as aforesaid, shall pay over the same into the treasury, and shall render his accounts to the Treasury Department as often as he may be required. And the Secretary of the Treas- ury is authorized to designate one or more depositories in each State, for the deposit and safe-keeping of the money collected by "wrtue of this act ; and the receipt of the proper officer of such depository to a collector for the money deposited by him shall be a sufficient voucher for such collector in the settlement of his accounts at the Treasury Department. And the Com- missioner of Internal Eevenue may, under the direction of the Secretary of the Treasury, prescribe such regulations with reference to such deposits as he may deem necessary. Collectors charged with Taxes. Sec. 34. (Amended July 13, 1866, § 9.) And ie it fuHher enacted, That each collector shall be charged («) with the whole amount of taxes, whether contained in lists delivered to him by the assessors, respectively, or delivered or transmitted to him by assistant assessors from time to time, or by other collectors, or by his predecessor in office, and with the additions thereto, with the par value of all stamps deposited with him, and with all moneys collected for passports, penalties, forfeitures, fees, or costs, and he shall be credited with all payments into the treas- ury made as provided by law, with all 'stamps returned by him uncancelled to the treasury, and with the amount of taxes contained in the lists transmitted in the manner above provided to other collectors, and by them receipted as aforesaid; and also, with the amount of the taxes of such persons as may have absconded, or 'become insolvent, prior to the day when the tax ought, according to the provisions of law, to have been collected, and with all uncollected taxes transferred by him, or by his deputy acting as collector, to his successor in office : Provided, That it shall be proved to the satisfaction of the Commissioner of Internal Eevenue that due diligence was used by the collector, who shall certify the facts to the First Comp- troller of the Treasury. And each collector shall also be credited with the amount of all ;pfoperty purchased by him for 72 tJ. S. INTEKNAL KEVENUB LAWS. the use of the United States, provided he shall faithfully account for and pay over the proceeds thereof upon the resale of the same as i-equired by law. In case of the death, resignation, or removal of the collector, all lists and accounts of taxes uncol- lected shall be transferred to his successor in office as soon as such successor shall be appointed and qualified, and it shall be the duty of such successor to collect the same. (a) Collectors are charged with the stamps sold by them, as sho"wn by their reports on Forms 76, 90, and 103, and should enter each month on Form 51 the collections shown by Forms 76, 90, and 103, each separately, as well as their receipts on Form S3J and the collections thereon._ All packages of internal revenue stamps forwarded by the direction of the Commissioner, should, as soon as received, be opened and counted in the presence of two competent witnesses ; and should a deficiency exist, duplicate affidavits of the facts should at once be forwarded to the Com- missioner. No claim for any alleged deficiency will be considered lAless this regulation has been complied with. At the close of each quarter, collectors must render their final accounts for all lists which they may have held for six months or more. No credit will be allowed for lists which have been held for six months and longer; and at the close of each quarter thereafter collectors should deposit the money for all amounts remaining uncollected on such lists for which no claims have been presented to the Commissioner. Claims on account of insolvency or absconding of the jsarties taxed must be made on Form 53, and sustained by the affidavit of the deputy collector. A collector making his own collections in any division should use Form 53, making his affidavit thereon, and treating the schedule in all respects as if made by a deputy. Collectors or deputy collectors, using Form 53, should state, in a con- cise but clear manner, the reason for non-collection under the head of '' Cause of inability to collect." For example : " Insolvent before demand could legally be made," "Died before receipt of list, and estate insolvent," "Left for parts unknown before the tax could be collected," " No property liable to seizure under the law," " Property would not pay expense of distraint." The dates should be given when the taxes were found to be uncollectible ; and, when this cannot be done, it should be stated, in each case, that the inability to collect existed prior to the receipt of the list, or before legal demand could be made. At intervals of not less than one month all taxes claimed to be uncol- lectible, either from error or insolvency, should be put into a single schedule on Form 48, grouped under captions designating the lists to which they belong, whether annual or monthly. The natural order of the months should be strictly observed. The captions should be written in red ink across the center of the schedule. The amount claimed should be placed only in the column headed •' Amount claimed." The other two columns, i-uled for dollars and cents, must be left blank. Each schedule must be verified by the certificate of the assessor and collector, and accompanied in all cases by affidavits on Form 47 or 53. Affidavits should be numbered by the collectors to correspond to the claims in the schedule supported by them. Those covering several claims should be marked on their backs with the numbers of those claims Be- fore transmitting any schedule, the collector should compare it with his lists, and check on the lists each claim contained in the schedule with in- telligible abbreviations, showing the date of the application and its nature, whether for insolvency or error ; and when notice of action is received, EULINGS, DBOISlOl^rS, ETC. 73 ■checks should be applied to the lists, showing the nature and date of such action in each case. In designating page and line, the collector and as- sessor should each have reference to the pages and lines of the lists as found in his own office. The numbering of the claims should be carefully attended to for con- venience of reference, and all claims presented at one time should be num- bered as on one schedule, and the claims in each numbered from one to the last in that schedule. 8 I. E. R. 303. 1st. The powers and duties of the Commissioner extend to abating taxes that shall have been erroneously or illegally assessed. These powers and duties are conferred upon him for the benefit of the taxpayer, and not of the collector, to whom it is immaterial which way the Commissioner may decide. Of this class of cases are double and excessive assessments. 3d. His duties and powers extend also to allowing the collector for un- collectible taxes, in which a collector is directly interested. This class of credits properly appertain to accounting, and is placed under the direction of the Commissioner by law. But, 3d. Where a collector is twice charged with the same assessment, his relief is to be had upon proper evidence through the action of the account- ing officers. This is simply the correction of errors in accounts, and in- volves no question as to the legality of the tax nor of the ability of the tax- payer to pay. 11 I. R. R. 58. Where the same item of tax is charged on more than one list, or where the tax or assessed penalty has been changed in amount, or made specific penalty by a compromise with the taxpayer, the errors or differences are matters of account to be passed upon by the accounting officers of the ' Treasury Department, and are not subject to abatement by the Commis- sioner. Collectors should present all such claims with their revenue accounts, and accompany them with evidence of the facts iu the case. 1st. In cases of double charges where the same item appears upon more than one Hst, the collector should make extracts containing the tax from each assessment list ; procure the affidavit of the assessor showing that he has personally compared the extracts with the originals and finds them true and correct, naming each list, page, and line where they appear, the amount of the tax and the amount of the footings of each list ; that the said tax on each list was identical, and was included in the footings in both lists, and twice receipted for by the collector on Form 33^, or in case it was receipted for on any other Form or Forms, state the facts, referring to the Form by the number. The collector should himself make a similar affida- vit proving the same facts, with the additional statement that the item of double charges has never been abated or remitted by the Commissioner ; and that the said tax was only once paid by the taxpayer, and that neither the whole nor any part of the duplicate charge has been collected. 3d. In cases where the tax or assessed penalty has been changed in amount, or the assessed penalty made specific penalty by compromise vrith the taxpayer, the collector should make an extract, containing the tax and assessed penalty, from the assessment list ; procure the affidavit of the as- sessor or assistant assessor that he has personally compared the extract with the original and finds it true and correct, naming the list, page, and line wherein it appears, the amount of the tax and assessed penalty, aiffl the amount of the footings of the list ; and that the said tax and assessed penalty are included in the footings of said list and receipted for on Form 2di (or any other Form as the case may be), and that the extract contains the identical tax and assessed penalty that was afterward compromised, or the assessed penalty treated as specific penalty by the Commissioner. In cases where one person does not know all the facts, as many affidavits as 74 tr. S, ETERNAL RBVEKTJE LAWS. may be necessary to prove them may be famished. The collector should make his own affidavit to the same facts, and add thereto a fiirther state- ment showing the terms of the compromise, and that the amount received from the taxpayer, naming the amount, was in lieu of and in full for said original tax and assessed penalty ; and that the assessed penalty (or tax, as the case may be) has never been abated or remitted by the Commis- sioner, and that no part of it has been collected except as above stated. 111. R. R. 9. It is the duty of the accounting officers to withhold the compensation of a collector uutil he has discharged his apparent liability for uncol- lected lists. 5 I. R. R. 46. When a collector goes out of office he must make a list of all taxes in his hands which are collectible, and take a receipt therefor in duplicate from his successor, which must show the amount belonging to each assess- ment list. One copy of this receipt must be transmitted to the Commis- sioner. The outgoing collector will not receive credit in the Office of In- ternal Revenue for the taxes thus transferred to his successor until they have actually been collected. The new collector will report the amounts collected by him on the list received from his predecessor, when he has collected all that he can, specifying the several assessment lists on which they were originally returned. On receipt of this report, the old collector will be credited and the new collector charged with the amounts col- lected. ^ For relief from taxes received from his predecessor which are found to be uncollectible, the new collector must furnish to his predecessor affida- vits on Form 33 that said taxes were uncollectible when they came into his hands. The old collector must furnish similar affidavits and certificates on Form 48 to the Office of Internal Revenue before the taxes will be abated in his account. The public property, consisting of all annual and monthly lists of taxes, all official letters and records, stationery, forms, blank-books, laws, circulars, specials, ' decisions, pamphlets containing instructions, postage stamps, hydrometers and manuals, or receipts of gangers for the same, and whatever there is furnished or paid for by the Government, must be delivered by the outgoing collector to his successor, together with an in- ventory of all such property in Ms possession. After obtaining the receipt of his successor to his inventory, he will transmit it to the Commissioner with his account of expenses on Form 91. 8 I. R. R. 205. Proceedings against Delinquent Collectors. Sec. 35. And he it further enacted, That if any collector shall fail either to collect or to render his account, or to pay over in the manner or within the times hereinbefore provided, it shall be the dnty of the First Comptroller of the Treasury, and he is hereby authorized and required, immediately after evidence of such delinquency, to report the same to the Solic- itor of the Treasury, v?ho shall issue a warrant of distress algainst such delinquent collector, directed to the marshal of the district, therein expressing the amount with which the said collector is chargeable, and the sums, if any, which have been paid over by him, so far as the same are ascertainable. And the said marshal shall himself, or by his deputy, immediately proceed to levy and collect the sum which may remain due. EULINGS, DEOISIOKS, ETC. 75 with five per centum thereon, and all the expenses and charges of collection, by distress and sale of the goods and chattels or any personal efteets of the delinquent collector, giving at least five days' notice of the time and place of sale, in the manner provided by law for advertising sales of personal property on execution in the State wherein such collector resides. And the bill of sale of the officer of any goods, chattels, or other personal property distrained and sold as aforesaid, shall be conclusive evidence of title to the purchaser, and prima facie evidence of the right of the officer to make such sale, and of the correctness of his proceedings in selling the same. And for want of goods and chattels, or other personal effects of such collector, sufficient to satisfy any warrant of distress, issued pursuant to the preceding section of this act, the lands and real estate of such collector, or so much thereof as may be necessary for satisfying the said warrant, after being advertised for at least three weeks in not less than three public places in the collection district, and in one newspaper printed in the county or district, if any there be, prior to the proposed time of sale, shall be sold at public auction by the marshal or his deputy, who, upon such sale, shall, as such marshal or deputy marshal, make and deliver to the purchaser of the premises so sold a deed of conveyance thereo:^ to be executed and acknowl- edged in the manner and form prescribed by the laws of the State in which said lands are situated, which said deeds so made shall invest the purchaser with all the title and interest of the defendant or defendants named in said warrant existing at the time of the seizure thereof. And all moneys that may remain of the proceeds of such sale, after satisfying the said warrant of distress, and paying the reasonable costs and charges of sale, shall be returned to the proprietor of the lands or real estate sold as aforesaid. Penalty for Extortion. Sec. 36. And he it further enacted, That each and every collector, or his deputy, who shall be guilty of any extortion or wilful oppression, under color of law, or shall knowingly demand oflter or greater sums than shall be authorized by law, or shall receive any fee, compensation, or reward, except as herein prescribed, for the performance of any duty, or shall wilfully neglect to perform any of the duties enjoined by this act, shall, upon conviction, be subject to a fine of not exceeding one thousand dollars, or to be imprisoned for not exceeding one year, or both, at the discretion of the court, and be dismissed from office, and be forever thereafter incapable of holding any office under the government ; and one-half of the fine so im- 76 U. S. rUTEEIfAL EEVfelflJE LAWS. posed shall be for the use of the United States, and the other half for the use of the informer, who shall be ascertained by the judgment of the court ; and the said court shall also render judgment against said collector or deputy collector for the amount of damages accruing to the party injured, to be collect- ed by execution. And each and every collector, or his deputies, shall give receipts for all sums by them collected. Officers may enter Buildings. Sec. 37. And le it further enacted, That a collector or deputy collector, assessor, assistant assessor, revenue agent, or inspector, shall be authorized to enter, in the day-time, any brewery, distillery, manufactory, building, or place where any property, articles, or objects, subject to duty or taxation under the provisions of this act, are made, produced, or kept, within his district, so far as it may be necessary for the purpose of examining said property, articles, or objects, or inspecting the accounts required by this act from time to time to be made or kept by any manufacturer, or producer, relating to such prop- erty, articles, or objects. And every owner of such brewery, distillery, manufactory, building, or place, or persons, having the agency or superintendence of the same, who shall refuse to admit such officer, or to suffer him to examine said property, articles, or objects, or to inspect said accounts, shall, for every such refusal, forfeit and pay the sum of five hundred dollars : Provided, however, That when such premises shall be open at night, such ofiicers may enter while so open in the perform- ance of their ofiicial duties. Penalty for obstructing Officers. Sec. 38. And Ve rt further enacted. That if any person shall forcibly obstruct or hinder any assessor or assistant asses- ' sor, or any collector or dep^ity collector, revenue agent or inspector, in the execution of this act, or of any power and authority hereby vested in him, or shall forcibly rescue, or cause to be rescued, any property, articles, or objects, after the same shall have been seized by him, or shall attempt ox endeavor so to do, the person so offending shall, upon conviction thereof, for every such offence, forfeit and pay the sum of five hundred dollars, or double the value of property so rescued, or be im- prisoned for a term not exceeding two years, at the discretion of the court : Provided, That if any such oflieer shall divulge to any party, or make known in any manner other than is provided in this act, the operations, style of work or apparatus of any. BULINGS,*DECISIONS, ETC, 77 manufacturer or producer visited by him in the discharge of his official duties, he shall be subject to the penalties prescribed in section thirty-six of this act. Penalty for Componnding Offences. [Sec. 26. (March 2, 1867.) And le it further enacted, That, if any collector, d%uty collector, assessor, assistant assessor, in- spector, district-attorney, marshal, or other officer, agent, or person charged with the execution, or supervision of the exe- cution,of any of the provisions of this act, or of the act to which this is amendatory, shall demand, or accept, or attempt to collect, directly or indirectly, as payment or gift or other- wise, any sum of money or other property of value for the compromise, adjustment, or settlement of any charge or com- plaint for any violation or alleged violation of any of the said provisions, except as expressly authorized by law so to do, he shall be held to be guilty of a misdemeanor, and shall for evfery such offence be liable to indictment and trial in any court of the United States having competent jurisdiction, and on con- viction thereof shall be imed in double the sum or value of the money t»r property received or demanded, and be imprisoned for a peripd of not less than one year nor more than ten years.} Penalty for Assuming to be an Officer. [Sec. 28. (March 2, 1867.) And he it further enacted, That if any person shall falsely represent himself to be a revenue officer of the United States, and shall in such assumed charac- ter demand or receive any money or other article of value from any person for any duty or tax due to the United States, or for any violation or pretended violation of any revenue law of the United States, such person shall be deemed guilty of a felony, and on conviction thereof shall be liable to a fine of five hun- dred dollars, and to imprisonment not less than six months, and not exceeding two years, at the discretion of the court.] Penalty for Conspiracy. [Sec. 30. (March 2, 1867.) And he it further enacted. That if two or more persons conspire (a) either to commit any offence against the laws of the United States, or to defraud the United States in any-manner whatever, and one or more of said parties to said conspiracy shall do any act to effect the object thereof, the parties to said conspiracy shall be deemed guilty of a mis- demeanor, and on conviction thereof shall be liable to a penalty of not less than one thousand dollars and not more than ten thousand dollars, and to imprisonment not exceeding two 78 IJ. S. INTEElfAL EE^ESXTE LAWS. years. And when any oifence shall be begun in one judicial district of the United States and completed in another, every such offence shall be deemed to have been committed in either of the said districts, and may be dealt with, inquired of, tried, determined, and punished in either of the said districts, in the same manner as if it had been actually and wholly committed therein.] , (ffl) Conspiracy is an agreement by two or more persons to commit an unlawful act or acts. It is sometimes defined to be an agreement to com- mit an act in itself unlawful, or to do an act lawful in itself by unlawful means. Either the final result or the means are to be unlawful. There is no special force in this division, inasmuch as something unlawful is to be done. This is the common-law definition independent of the statute, and, if the statute spoke simply of a conspiracy, it ought perhaps to be con- strued with reference to the common-law definition. But in this statute the word has a more comprehensive meaning, because it includes defraud- ing the United States in any manner whatever, whether the fraud had been declared a crime by any statute or not. It is therefore immaterial to consider whether the acts were a crime independent of the statute, if there is shown to have been a conspiracy to defraud the government. U. S. i>. "Whalan, 7 I. R. R. 161; s. c. 1 A. L. T. (0. R.) 63; In re c'allicott, 8 I. R. R. 169. Whether there has been such a conspiracy as the law requires, the jury are to gather from all the circumstances of the case. It is not neces- sary that there should have been a pecuniary consideration, a definite, ab- solute contract ; but there must have been between the parties charged a concert of action, a concert of intent, which makes the offence. U. S. v. Allen et al. 7 1. R. R. 163 ; U. S. ». Sultzberger et al 7 I. R. R. 301. The conspiracy to defraud with any one act by either of the parties constitutes the offence. The mere combining or confederating to commit the fraud is sufficient without any actual perpetration of it, or loss or damage to the Government, if any one of them has taken a step toward its execution, toward carrying the scheme into effect. The law strikes at the incipient steps, the germ of the offence, with a view the more effectu- ally to deter persons from entering upon fraud, and lays hold of them be- , fore its consummation. IT. S. d. Perry et al. 10 I. R. R. 305 ; IT. S. ». Oalli- cott, 7 I. R. R. 177 ; U. S. ■». Allen et al. 7 I, R. R. 163. "When an overt act in furtherance of the object of the conspiracy is com- mitted within the jurisdictional limits of the court, the court has jurisdic- tion to try the parties for the offence. IT. S. «. Sperry et al. 10 I. R. R. 205. The act charged may be stated in various ways, to be adapted to the various phases o^ a case which may be developed by the evidence. It is not necessary that the jury should discriminate between the various counts. If any count is good, it wUl support a general verdict. U. S. a. RULINGS, DECISIONS, ETC. 79 Whalan et al. 7 I. R. R. 161 ; s. c. 1. A. L, T. (0. R.) 63 ; In re CalUcott, 8 I R. R. 169 ; s. c. 1 A. L. T. (0. R.) 139. When there are several counts in an indictment, a verdict of not guilty is a verdict of not guilty under all the counts. If the jury find the ac- cused guilty under any of the counts, they should except from their verdict v?hatever of the counts they find not to be proven. U. S. v. Allen et al. 7 I. R. R. 163 ; U. 8. «. Callicott, 7 I. R. R. 177. • The practice of postponing the trial of a cause until the circuit judge can sit with the district judge is confined, with few exceptions, to capital cases. A division of opinion maybe certified on motions in arrest of judg- ment, though it cannot on a motion for a new trial. But where there is a difference of opinion on a motion for a new trial, such direction will be given to the case as will enable the defendant to obtain a certificate of division under the statute. A new trial will be granted, and the cause again submitted to the jury in the presence of the two judges, and the question or questions regularly certified. U. S. ». Pullerton, 9 I. R. R. 8. A witness who declares himself upon the stand to be guilty of the crime charged, holds such a relation to the case as to render it unsafe to convict upon his testimony alone, unless confirmed upon material points by evidence to which no suspicion attaches. It is sometimes necessary to call such witnesses, but they stand before a jury under a strong bias and confessing their own infamy. A witness who thus testifies will not be punished unless he tells an entirely different story on the stand from what lie has told out of court. When a number of parties have been arrested, there is always a strong temptation to throw the blame on each other, and to buy immunity by evidence ; and the stronger the suspicions are against one, the greater is the temptation, because he has less chances of escape in any other way ; so that juries look for corroboration from independent wit- nesses who testify to material facts in the case ; and these facts must tend to show not only his own knowledge of the crime which he admits, but the complicity of the others. U. S. «. Whalan et al. 7 I. R. R. 161 ; s. c. 1 A. L. T. (G. R.) 63 ; U. S. ». Callicott, 7 I. R. R. 177 ; s. c. 1 A. L. T. (C. R.) 139. When other acts similar to those charged in the indictment are proved, they are only to be considered as throwing some light upon the question of the guilty intent and knowledge of the parties They tend to show a state of mind in the parties, and afford more or less evidence of the cor- rupt intent which with the commission of the act constitute the offence. There must be a criminal intent and it must be carried out by some act. U. S. v. Allen et al. 7 I. R. R. 163. The defendants are entitled to the benefit of every reasonable doubt. If there is any reasonable doubt of their guilt, they should have the benefit of it and be acquitted. If the evidence shows that they are guilty beyond any reasonable doubt of an intelligent man, they should, be acquitted. U. S. V. Whalan et al. 7 I. R. R. 161; B. c. 1 A. L. T. (C.R.) 63; U. S. v. Allen et al. 7 I. R. R. 163. ' 80 U. S. INTERNAL REVENUE LAWS. To constitute the offence, there must be a criminal intent, or such an amount of carelessness and total indifference in the discharge of official duties as amounts to criminality. U. S. 11. Allen et al. 7 I. R. R. 163. It would not be remarkable nor singular, if, in the multitude of business in the office of a collector, occasionally an imposition should be pressed upon him. But when a large number of fraudulent bonds, forged both as to principal |kd as to surety, or otherwise tainted with fraud, are accepted in succession within a limited period, it is sufficient to excite surprise, if not suspicion, and to call for an explanation. IT. S. v. Callicott, 7 I. R. R. 177; s. c. 1 A. L. T.''(C.R.)139. "When parties are out on bail, they are entitled to their liberty until the case is disposed of They cannot, after the cause has been submitted to the jury, be remanded to the custody of the marshal to await the result of the verdict. U. S. ■». Sulzberger et al. 7 I. R. R. 301. Penalty for Bribery. [Sec. 62. Ouiy 13. ^see.) And he it further enacted, That if any person or persons shall, directly or indirectly, promise, offer or give, or cause or procure to be promised, otfered, or given, any money, goods, right in action, bribe, present, or reward, or any promise, contract, undertaking, obligation, or security for the payment or delivery of any money, goods, right in action, bribe, present, or reward, or any other valuable thing whatever, to any officer of the United States, or person holding any place of trust or profit, or discharging any official function under, or in connection with, any department of the government of the United States, after the passage of this act, with intent to in- fluence his decision or action on any question, matter, cause, or thing which may then be pending, or may by law be brought before him in his official capacity, or in his place of trust or profit, or with intent to influence any such officer or person to commit, or aid or abet in committing, any fraud on the revenue of the United States, or to connive at or collude in, or to allow or permit, or make opportunity for the commission of any such fraud, and shall be thereof convicted, («) such person or persons so offering, promising, or giving, or causing, or procuring to be promised, offered, or given, any such money, goods, right in action, bribe, present, or reward, or any promise, contract, undertaking, obligation, or security for the payment or delivery of any money, goods, right in action, bribe, present, or reward, or other valuable thing whatever, and the officer or person who shall in anywise accept or receive the same, or any part, respectively, shall be liable to indictment in any court of the United States having jurisdiction, and shall, upon conviction thereof, be fined not exceeding three^ times the amount so offered, promised, given, accepted, or received, and imprisoned RULINGS, DEOISIOKS, ETC. 81 not exceeding three years ; and the person convicted of so accepting or receiving the same, or any part thereof, if an officer or person holding any such place' of trust or profit, shall forfeit his office or place ; and any person so convicted under this sec- tion shall forever be disqualified to hold any office of honor, trust, or profit under the United States.] (a) If any effect is to be given to the words " and shall be thereof con- victed," the section would be inoperative and impossible to be executed, since, by express words, a previous conviction is made necessary before an indictment can be found. The section must therefore read as if these words, which are without meaning as they are used, were not present. They should be treated as surplusage and of no effect. U. S. v. Stern, 6 I. B. E. 169. Deputy may Act as Collector during Temporary Disability. Sec. 39. And he it further enacted, That in case of the sickness or temporary disability of a collector to discharge such of his duties as cannot under existing laws be discharged by a deputy, they may be devolved {a) by him upon one of his depu- ties ; and for the official acts and defaults of such deputy the collector or his sureties shall be held responsible to the United States. («) Proper evidence that the duties of the collector have been thus de- volved upon the deputy collector should be ffled in the OflBce of Internal Revenue, and the fact of sickness or other disability of the collector must appear upon papers signed by the deputy. 2 I. E. R. 3. Deputy may Act as Collector in case of Vacancy. Sec. 40. (Amended, March 3, 1865, §i; March 2, 1867, §'9.) A^ld 1)6 it further enacted, That in case of a vacancy occurring in the of- fice of collector by reason of death, or any other cause, the deputies of such collector shall continue to act until his succes- sor is appointed ; and the deputy of such collector longest in service at the time immediately preceding shall, until a successor shall be appointed, discharge all the duties of said collector; and for the official acts and default of such deputy a remedy shall be had on the official bond of the collector, as in other cases ; and of two or more deputy collectors, appointed on the same day, the one residing nearest the residence of the collector at the time of his death, resignation, or removal, shall discharge the said duties until the appointment of a suc- cessor : - Provided, That in case it shall appear to the Secretary of the Treasury that the interest of the government shall so require, he may, by his order, direct said duties to be per- formed by such other dke. of the said deputies as he may in 6 82 U. S. INTBElfAL KEVBNUB LAWS. such order designate. And any bond or security taken from a deputy by such collector, pursuant to this act, shall be avail- able to his legal representatives and sureties to indemnity them for loss or damage accruing from any act of the deputy so continuing or succeeding to the duties of such collector. Deputy to receive Coiwpeusation of Collector, [Sec. 1. (March i, 1869.) Be it enacted hy the Senate and House of Representatives of the United States of America in Congress assembled, That any deputy collector of internal revenue who has performed, or may hereafter perform, under authority or requirement of law, the duties of collector of internal revenue, in consequence of any vacancy in the office of such collector, shall be entitled to and receive so much of the same pay and compensation as is provided by law for such collector ; but no such payment shall in any case be made when the collector has received or is entitled to receive compensation for services rendered during the same period of time.] [Sec. 2. Quiy i, 1870.) Be it enacted iy the Senate and Souse of Representatives of the United States of America in Con- gress assembled, That the true intent and meaning of an act approved March one, eighteen hundred and sixty-nine, entitled " An act to allow deputy collectors of internal revenue acting as collectors the pay of collectors and for other purposes," is as follows, to wit : That any deputy collector of internal revenue who has performed, or may hereafter perform, under authority of law, the duties of collector of internal revenue, in conse- quence of any vacancy in the office of said collector, shall be entitled to, and shall receive, the salary and commissions allowed by law to such collector, or the allowance in lieu of said salary and commissions allowed by the Secretary of the Treasury to such collector, and that the Secretary of the Treas- ury is authorized to make to the said deputy collector such allowance in lieu of salary and commissions as he would bylaw be authorized to make to said collector. And said deputy col- lector shall not be debarred from receiving said salary and commissions, or allowance in lieu thereof, by reason of the holding of another federal office by said collector during the time for which said deputy collector acts as collector : Provided, That all payments to said deputy collector shall be upon duly audited vouchers.] Collectors to prosecute Suits. Sec. 41 . (Amended July 13, 1866, § 9.) And be it further enacted. That it shall be the duty of the collectors aforesaid, or their deputies, in their respective districts, and they are hereby ETJLINGS, DBOISIOSfS, ETC. 83 authorized to collect all the taxes imposed by law, however the same may be designated, and to prosecute for the recovery of any sum or sums which may be forfeited by law ; and all fines, penalties, and forfeitures which may be incurred or imposed by law shall be sued for and recovered, in the name of the United States, in any proper form of action, or by any appropriate form of proceeding, qui tarn or otherwise, before any circuit or district court of the United States for the district within which said fine, penalty, or forfeiture may have been incurred, or before any other court of competent jurisdiction. And taxes may be sued for and recovered, in the name of the United States, in any proper form of action before any circuit or dis- trict court of the United States for the district within which the liability to such tax may have been or shall be incurred or where the party from whom such tax is due may reside at the time of the commencement of said action. But no such suit shall be commenced unless the Commissioner of Internal Kevenue shall authorize or sanction the proceedings : Provided, That in case of any suit for penalties or for- feitures brought upon information received from any person, other than a collector, deputy collector, assessor, assistant asses- sor, revenue agent, or inspector of internal revenue, the Uhited States shall not be subject to any costs of suit, nor shall the fees of any attorney or counsel employed by any such officer be allowed in the settlement of his account, unless the employ- ment of such attorney or counsel shall be authorized by the Commissioner of Internal Ee venue, either expressly or by general regulations. Commissioner to prescribe Regulations. [Sec. 3. (March 2, 1867.) And he it further enacted, That in all suits or proceedings arising under the internal revenue laws, to which the United States is party, and in all suits or proceed- ings against a collector or other officer of the internal revenue, wherein a district attorney shall appear for the purpose of prosecuting or defending, it shall be the duty of said attorney, instead of reporting to the Solicitor of the Treasxiry, im- mediately at the end of every term of the court in which said suit or proceeding is or shall be instituted, to forward to the Commissioner of Internal Eevenue a full and particular state- Tnent of the condition of all such suits or proceedings appearing upon the docket of said court: Provided, That upon the institution of any such suit or proceeding it shall be the duty of said attorney to report to said Commissioner the full partic- ulars relating to such suit or proceeding ; and it shall be the ■duty of the Commissioner of Internal Kevenue (with the 84 U. S. IKTEEKAL REVENUE LAWS. approval of the Secretary of the Treasury) to establish such rules and regulations, {a) not inconsistent with law, for the ob- servance of revenue officers, district attorneys, and marshals, re- specting suits arising under the internal revenue laws, in which the United States is a party, as may be deemed necessary for the just responsibility of those officers and the prompt collection of all revenues and debts due and accruing to the United States imder such laws.] (a) 1. Each district attorney should procure a well-bound docket and letter-book, labeled as follows : " The property of the United States, Inter- nal Revenue Cases," each being provided with a suitable index. These books will be carefully preserved and handed to the successor of such officers. Full and minute entries will be made in these dockets of the time of issuing and receiving papers and process, and of whatsoever is done by said officers in United States internal revenue cases of all kinds, with correct dates. The letter-book will contain full and true copies of all' letters written by them officially concerning internal revenue suits or mat- ters relating thereto, in which the United States is interested. 3. All official letters relating to cases under the internal revenue laws^ received by district attorneys, will be*preserved as public property, and de- livered to their successors. Whenever such letters accumulate sufficiently to make a volume, the officer having them in possession will cause the same to be indexed and bound according to their dates. All papers and documents used by, or coming to the possession of, any district attorney during the progress of a suit, and relating thereto, must be properly filed and kept in a bundle with the other papers relating to the cause, and delivered by him to his successor. 3. No district attorney will commence a suit or proceeding in court arising under the internal revenue laws, in the name, or for the benefit of, the United States, without instructions from the Commissioner, or by di- rection from some person or court authorized by law so to direct. 4. Whenever any district attorney shall in any manner become possessed of information wliich shall lead him to believe that a trespass upon the property of the United States (of which possession is held by virtue .of the internal revenue law), or an infraction of the internal revenue law, has been committed, he will immediately report such information to the collector of internal revenue for the district in which the offence was committed, and, if the collector shall agree as to its propriety, suit shall be immediately commenced. If the collector shall not so agree, the district attorney will immediately report the circumstances of the case to the Commissioner, and await his instructions. 5. On the receipt of the papers on which to commence suit, the district attorney will closely examine and see if there is any defect in them, or if any explanation is wanted ; and, if so, he will immediately report the same to the person from whom the papers were received, with such suggestions as shall seem to him proper. If, before the commencement, or during the progress of a cause, questions shall arise in the mind of the district attor- ney, in relation to which it may, in his opinion, be desirable that he should take counsel, he shall state such questions to the Commissioner, with the authorities bearing upon them, and also his own views. 6. The commencement of all suits must be reported by district attor- neys, on Form 113, to the Commissioner, immediately after process shall be issued, and at the end of every term of the district and circuit courts, they will make a general report, on Form 113, containing a list of all BULI2»rGS, DECISIONS, ETC. 85 internal revenue suits commenced by them since the close of the last pre- ceding tenn of such count) with a full statement of the cause of the action and all the proceedings therein; and also of all proceedings since the close of the last preceding term, in causes previously commenced, so as to furnish to the Commissioner a full history of what has been done in all causes since the previous term, including any trial, verdict, decision, or judgment, and the issuing of any execution, with the time when issued. 7. When a suit shall have been commenced, either by direction of a public officer or otherwise, it will be the duty of the district attorney hav- ing such suit in charge, to press the same to a judgment at as early a day as possible, consistent with the interest of the United States. When a cause shall have been continued, the district attorney will, in his next return to the Commissioner, state upon whose motion and upon what grounds the continuance was directed. No district attorney will discontinue a suit, or consent to a dismissal or discontinuance thereof, or suspend proceedings, or argue that a judgment or decree shall be taken for a less amount than the United States is entitled to claim, in view of the violation of the law committed by the defendant, without express instruction from the Com- missioner, except that when such attorney shall be of opinion that the suit has been improperly brought, that an error has been committed in the pleadings or proceedings which may be fatal or hazardous to the interests of the Government, or that the evidence in his power to produce is in- sufficient to support the action, and there shall not be sufficient time to communicate with and receive instruction from the Commissioner, he may consent to suspend proceedings, or to a continuance. In all such cases the district attorney will immediately report the facts and his reasons for his action to the Commissioner. 8. As early as practicable after the perfecting of judgment, execution will be placed in the hands of the marshal by the district attorney, who will take duplicate receipts therefor, one of which he will transmit to the Commissioner. At the commencement of every term of court, the district attorney will carefully examine and ascertain whether the marshal has prop- erly returned all process placed in his hands, the return of which is due. If he shall find that the proper return has not been made, it wiU be his duty to take prompt and efficient measures to compel action ; in which case he will report the steps taken and their result to the Commissioner. 9. All records of cases in error, or on appeals to the Supreme Court, to- gether with the points of both parties, the brief of the district attorney, the authorities cited by the opposing counsel, and the opinion of the judge, when it can be obtained, whether intended for the Attorney General, the clerk of the Supreme Court, or the Commissioner, must be enclosed to the Commissioner, when the proper disposition of the papers will be made. 10. In case of any change of the fee bills or rules of court in either of the districts, the proper district attorney is requested to advise the Commis- sioner of such alteration. 11. After process is placed in the hand of a marshal, district attorneys will not attempt to control or interfere with the execution of the same, as therein commanded, without special directions from the Commis- sioner. MARSHALS. 1. Marshals will each procure a well-bound docket, day-book, ledger, and letter-book, labelled and marked as follows : " The Property of the United States — Internal Eevenue Cases," with suitable index for each. These books will be carefully preserved by the marshals and handed to their successors. They will make minute entries in their dockets of the time of receiving and serving papers and process, and of whatever is done 86 U. S. INTERNAL REVENUE LAWS. by them in cases arising under the internal revenue laws, with correct dates.. The letter-book will contain full and true copie» of all letters written by- such officers, officially relating to such suits or matters in which the United States are interested. In the day-book and letter-book full and accurate accounts will be kept of all moneys received and paid out for the United States, on account of these cases. The entries in docket and account-books will be so full, clear, and definite that they can be easily understood. 3. All official letters relating to United States internal revenue cases, received by marshals, not needed by them as vouchers for the payment of money, will be preserved as public property, and delivered to their suc- cessors. Where the originals are essential to them as vouchers, they will leave copies of them in their places. Whenever such letters accumulate sufficiently to make a volume, the officer having them in possession will cause the same to be indexed and bound according to their date. 3. On receipt of every process, mesne and final, in United States internal revenue cases (except subpoenas), marshals will notify the Commissioner thereof on Forms 114 and 115 respectively, stating the title and nature of the suit, the name of the process, and, if an execution, distress warrant, or otherwise requiring the collection of money, or sale or seizure of property, the amount of the debt, or a description of the property to be sold or seized,, and the amount of the costs, with the time from which they are directed to collect interest. They will also give to the district attorney duplicate re- ceipts expressing the above particulars. 4. Where a marshal, in an United States internal revenue case, makes a seizure or levy, he will report to the Commissioner, giving a full descrip- tion of the property seized or levied upon, in whose possession found, where, how, and by whom, and upon what terms kept, and how long it will be necessary to keep it. If, at the tiihe of sale, no one bids to the amount of the execution, or one-half the cash value of the property offered^ he will postpone the sale and give notice to the Commissioner — except in cases where, by such postponement, the lien would be lost or the interest of the Government seriously jeopardized. In the latter case, if he shall deem it necessary to save the debt, he will consider the United States as bidding such an amount not greater than one-half the cash value of the property as he shall deem proper for their interests. Should the United States become the purchaser of the property, the marshal will take care of the same, and will make an immediate report of his action in relation there- to to the Commissioner. 5. When real estate shall be purchased at a marshal's sale by or for the United States, the marshal will immediately transmit to the office of the Commissioner his certificate of sale, according to the law and usages in his district ; and when the purchaser shall be entitled thereto, said marshal shall execute his deed for the property to the United States, and cause the same to be placed on record, and immediately thereafter he will transmit such deed to the Commissioner. 6. On the return of process in cases arising under the internal revenue laws, the marshal will report in writing to the district attorney, and also to the Commissioner of fiiternal Revenue, what they have done on each. In cases where the marshal returns in substance " no property found," he will also specially report to the district attorney and the Commissioner the situation, residence, and circumstances of the party against whom the process was issued, and whether the debtor has any means within or out of the district, which can be reached by the United States, or whether the debt is valueless. 7. In all cases where the money is made by the marshal on execution, or where it shall come into Ms hands in any other manner, he will pay the en- tire gross proceeds into the registry of the court, and will immediately re- BUIilNGS, DECISIONS, ETC. 87 port to the district attorney, and to the Commissioner, on Form 116, fully and particularly, stating when, from -whom, and on what account the same was received. 8. On the first day of March in each year, marshals will report to the Commissioner the situation of all judgment debtors of the United States, under the internal revenue laws, within their respective districts, so far as they have any knowledge upon the subject, and wUl advise such proceed- ings in the premises as they shall deem proper. Documents, books, and papers relating to internal revenue cases, coming into the possession of district attorneys and marshals, must be kept sepa- rate and distinct from those relating to other cases, and matters in which the United States are interested. COLLECTORS. 1. Each collector will keep a record or docket of the seizures made in his district, and show therein the date of the seizure, at whose instance it was made, the kind, quality, and estimated value of the property, the name of the informer, if any, the name and address of the owner of the property, the reason for such seizure, where stored, or by whom taken care of, the nature of the proceedings instituted, and the final disposition of the case. On making a seizure the collector will at once notify the Commis- sioner, on Form 117, stating all the facts pertaining to the same then in his possession. 3. Where small seizures made by collectors shall be appraised at less than three hundred dollars, district attorneys vrill not proceed against them, but collectors wiU sell such articles in the manner prescribed by law. 3. All property seized by collectors or transferred to them, where prac- ticable, will be stored and kept in the United States warehouse, or ware- houses, used and occupied under the internal revenue laws by the ofiicers of the Grovemment. 4. When a collector of internal revenue directs the commencement of a suit for any cause, he will do so in writing addressed to the proper dis- trict attorney. If it is for a fine, penalty, or forfeiture, he will communi- cate all the facts which he expects to be able to prove, and the names and residences of the witnesses by whom such facts can be shown, and the name of the informer, if any. He will distinctly state what law he be- lieves has been violated, and the amount of the penalty claimed. In cases of seizure, he will state what property has been seized, and for what cause ; also, how and upon what terms the property so seized is kept. A copy of such direction and communication, the person ordering the suit will im- mediately send to the Commissioner. MISCELLANEOUS. 1. District attorneys, marshals, and collectors of internal revenue will report to the Commissioner the existence and situation of any prop- erty belonging to the United States, by reason of violation of the internal revenue laws, which is not in the care of any ofiicer or agent of the Gov- ernment, to the end that it may be protected and preserved. If either of them shall discover that any claim in favor of the Government, not in his hands, can be collected, he will report to the Commissioner, and recom- mend the best mode for proceeding. They will also report immediately to the Commissioner any default of a district attorney, clerk, marshal, or collector, or other person engaged in the collection of any debt due to the United States under the internal revenue laws, or in the disbursement of any money collected in such cases. All reports will be made substantially 08 U. S. INTBEJTAL EEVENUB LAWS. in the form furnished from the Commissioner's office, which will be ex- ■ clusively used when applicable. 3. Whenever any suit shall be brought against any officer of the United States in the internal revenue service, for any act done or omitted in his official capacity, and in the defence of which he may desire the aid of the district attorney, or by the determination of which the interests of the United States may be in any wise affected, such officer shall, as soon as jjracticable, transmit to the district attorney the process served upon him, together with a clear statement of the circumstances out of which the suit shall have arisen; whereupon the district attorney will either assume the defence of such suit, or apply for instruction in relation thereto to the Commissioner, as may be required by the nature of the case. 3. Every officer (other than a collector of internal revenue in his own district) who makes a seizure, will at once report the fact to the collector of the district in which the seized property is located, and turn over the same to the said collector as soon as possible, forwarding to the Commis- sioner at once a report embodying all the facts concerning the same which are then known to him. 4. The receipt of all communications fi'om the office of the Commis- sioner will be acknowledged by the first mail 5. In all cases where receipts, notices, returns, or other papers are re- quired to be sent to the ofBce of the Commissioner, they must be for- warded at the earliest practicable moment. 6. In all cases, where desired, duplicate receipts for moneys or papers received, will be executed by the party receiving them. 7. Letters to the Commissioner will be on ordinary sized letter paper, with ample margin on all sides. All letters will be enclosed in envelopes, and each distinct subject will be communicated vrithin a separate letter. All letters will be endorsed on the back with the name of the party writ- ing, official designation, residence, date of letter, and brief of contents. 8. None of the foregoing instructions to district attorneys, marshals, collectors, and other officers of internal revenue, are to be deemed to apply to any cases except those arising under the internal revenue laws. 5 I. R. E. 155. When a marshal takes possession of a distillery by virtue of a process issued for a violation of the internal revenue laws, he should immediately cause the head of the still to be taken off, or the machinery to be discon- nected in such a manner as to render it impossible for distillation to be carried on. Admission to such premises should at all times be peimitted ' to any internal revenue officer who would be entitled to admission were the same put in the custody of the marshal. 7 I. R. R. 74. Penalty for Peijiiry. Sec. 43. And he it further enacted, That if any person, in any case, matter, hearing, or other proceeding in which an oath or aiErmation shall be required to be taken or administered under and by virtue of this act, shall, upon the taking of such oath or affirmation, knowingly and wilfully swear or affirm falsely, every person so offending shall be deemed guilty of perjury, {a) and shall, on conviction thei-eof, be subject to the like punishment and penalties now provided by the laws of the United States for the crime of perjury. (a) An indictment for perjury is good without any averment of mate- riality, when it appears upon its face that the fact alleged to have been. KULINGS, DECISIOmS, ETC. 89 falsely sworn to was a material one. It is not necessary that the facts sworn to should constitute full proof of the matter at issue; they are material, if it can be seen that they would necessarily tend to prove it. U. S. v, Mc- Henry, 10 I. R. E. 42. Separate Accounts to be Kept. Sec. 43. And ie it fwrther enacted, That separate ac- counts shall be kept at the treasury of all moneys received from internal duties or taxes in each of the respective States, Ter- ritories, and collection districts ; and that separate accounts shall be kept of the amount of each species of duty or tax that shall accrue, so as to exhibit, as far as may be, the amount col- lected from each source of revenue, -with the moneys paid as compensation and for allowances to the collectors and deputy collectors, assessors and assistant assessors, inspectors, and other officers employed in each of the respective States, Terri- tories, and collection districts, an abstract in tabular form of which accounts it shall be the duty of the Secretary of the Treasury annually, in the month of December, to lay before Congress. Appeals to Commissioner. Sec. 44. (Amended July 13, 1S66, § 9.) And he it further enacted, That the Commissioner of Internal Revenue, subject to regula- tions prescribed by the Secretary of the Treasury, shall be, and is hereby, authorized, on appeal to him made, to remit, refund, {a) and pay back all taxes erroneously or illegally assessed or collected, all penalties collected without authority, and all taxes that shall appear to be unjustly assessed or excessive in amount, or in any manner wrongfully collected, and also repay to col- lectors or deputy collectors the full amount of such sums of money as shall or may be recovered against them, or any of them, in any court, for any internal taxes or licenses collected by them, with the costs and expenses of suit, and all damages and costs recovered against assessors, assistant assessors, col- lectors, deputy collectors, and inspectors, in any suit which shall be brought against them, or any of them, by reason of any thing that shall or may be done in the due performance of their official duties ; and all judgments and moneys recovered or received for taxes, costs, forfeitures, and penalties, shall be paid to the collector as internal taxes are required to be paid. Provided, That where a second assessment may have been made in case of a list, statement, or return which in the opin- ion of the assessor or assistant assessor was false or fraudulent, or contained any understatement or undervaluation, such as- sessment shall not be remitted, nor shall taxes ecoUcted under 90 U. S. INTBKNAL REVENUE LAWS. such assessment be recovered, refiHided, or paid back, unless it is proved that said list, statement, or return was not false or fraudulent, and did not contain any understatement or under- valuation. (a) Claims for refunding must be made on forms 46, verified by affi- davits like claims for abatement, and by certificates of the assistant asses- sor, assessor and collector. The collector must certify to the date of pay- ment of the amount claimed. Claims for refunding should not be entered in schedules and may be presented as often as desired ; but unless they are presented to the proper revenue officers within six months from the date of the payment of the tax, the Commissioner will not be bound to in- vestigate them, and may refer the claimants to their remedy at law. ' The post-office addi-ess of parties making claims for refunding should be given ; otherwise, the claims cannot be paid if allowed. Both the assessor and collector should keep a perfect record in the book fiimished for the purpose, of all claims presented to the Commis- sioner, and must certify that each claim has not been before presented. If any claim on Form 46 or 47 is presented without the certificate of the as- sistant assessor, the reason for the omission must be given. If in any case, after a full investigation, the assessor and collector, either or both, cannot certify to the facts set fortli in the affidavits, they should state the reason for their dissent, and allow the party to corroborate his statements by such other proof as he is able to furnish. Members of firms making affidavits must swear, each for himself, to the fact set forth, including that of membership, and subscribed his own name and not that of the firm. Affidavits may be made before any internal revenue officer, or before the chief clerk of an assessor, without fee ; but when made before the chief clerk, must be accompanied by the assessor's or collector's certificate, veri- fying the chief clerkskip and the absence of the assessor at the time. Any other person administering an oath or affirmation must show, by seal, or certificate from the proper authority, that he is qualified to do so, and the certificate must be stamped. Credits should not be taken by collectors for taxes supposed to be un- collectible until notice of abatement is received from the Commissioner. When taxes are abated, the amounts are at once credited to the collectors upon the books in the office of the Commissioner, and schedules of the same are sent to them with authority to take credit for the sums abated in their next quarterly accounts. When credit is given on account of insolvent or abscondmg persons, although the collector is thereby released from the obligation created by receipting for the amount credited, the obligation to pay still remains upon the assessed persons, of whom a record must be kept in the book furnished from the office of the Commissioner. Collectors should bear this fact in mind, and not consider themselves as released fi-om the ob- ligation to collect in such cases whenever it shall be in their power. If, pending action for abatement of an erroneous assessment, the tax should be collected, the collector, upon receiving an order for abating the same, will return the amount to the assessor on Form 58, and will make affidavit on Form 46, giving the date of the payment, and naming the assess- ment list upon which it is returned a second time, and have it properly certified to by the assessor and assistant assessor, when a draft for the amount will be drawn in favor of the person assessed. If a claim for an uncollectible tax should be paid, pending action, or after it has been abated, it should be returned as above on Form 58. Schedules of all taxes EXJLINGS, DECISIONS, ETC, 91 abated, reftinded, or allowed as uncollectible, ■will be sent to assessors to be kept on file for public inspection. 8 I. R. R. 304. No claim or application for the refunding of taxes will be entitled to consideration unless the same shall be filed with the Commissioner within two years from the date of the payment of the tax, or in the case of claims that accrued prior to August 3, 1866, within two years after that date. 10 I. R. R. 41. The Commissioner is required to make application from time to time to the Secretary of the Treasury to have the necessaiy sums placed to his credifwith the assistant treasurer at New York, on which he draws in like manner as if the moneys were in the hands of the collectors. 2 I. R. R. 68. Whenever a proposition for a compromise is made by a delinquent taxpayer, it is forwarded to the Commissioner of Internal Revenue with the indorsement of the collector and assessor. A copy of an assessment made out by the assessor from the best information that he can obtain should ac- company it. 3 1. R. R. 94. When Suits for Taxes may be Commenced. [Sec. 19. (juiy 13, isee ; as amended March 2, 1867, § 10). Andhc it further enacted. That no suit shall be maintained in any court for the recovery of any tax alleged to have been erroneously or illegally assessed or collected, until appeal (a) shall have been duly made to the Commissioner of Internal Revenue, according to the pro- visions of law in that regard, and the regulations of the Secretary of the Treasury established in pursuance thereof, and a decisioiu of said Commissioner be had thereon, unless such suit shall be brought within six months from the time of said decision, or within six months from the time this act takes effect : Provided, That if said decision shall be delayed more than six months from the date of said appeal, then said suit may be brought at any time within twelve months from the date of such appeal, and no suit for the purpose of restraining the assessment or collection of tax shall be maintained in any court] Ca) Under the provisions of this section appeals may be made : 1. From the decision of an assessor when a person feels aggrieved by the assessment. This appeal may be presented on Form 47 for the abate- ment of the tax. 2. For refunding on Form 46. In either case the applicant should specify the date of the assessment f if monthly, for what month or months ; if annually, the year or part of the year for which the assessment was made, the subject matter upon which the assessment was imposed ; and, in cases for refunding, the date of pay- ment ; and should give a clear and concise statement of the facts upon which he bases his application. When he refers to correspondence with the office of Internal Revenue, the date and subject of the letters should be given with the name of the writer, if to the office, or of the person addressed,, if from the office, to facilitate the finding of the correspondence, or copiea of all such letters, or the originals may be furnished when in the power of the applicant. The officers should make the certificates on those Forms in the manner hereinbefore required for claims for abatement or refunding. 8 I. R. R. 204_ 92 U. S. INTEE]5fAL KEVENUB LAWS. The jurisdiction of the courts to give redress to a party aggrieved by an erroneous or illegal assessment, has often been denied because the party may appeal to the Commissioner for redress, and because he may also pur- sue his remedy by petition to Congress or present it in the Court of Claims. Such a theory finds no substantial support in any act of Congress upon the subject or in any decided case. On the contrary, the several acts of Con- gress for the assessment and collection of internal revenue duties, contain many provisions wholly iaconsistent with any such theory, and wjiich, when considered together, afford an entirely satisfactory basis for the oppo- site conclusion. City of Philadelphia v. Collector, 5 "Wall. 730 ; Nelson ^. Carman, 6 I. K. R. 181 ; s. c. 5 Blatch. 511 ; Pacific Ins. Co. o. Soule, 7 Wall. 443 ; MandeU v. Pierce, 7 I. R. R. 193 ; s. o. 1 A. L. T. (C. R.) 138 ; Shaefer V. Ketchum, 6 I. R. R. 4 ; Blake ». McCartney, 10 I. R. R. 131. A verbal protest noted by the collector upon the back of the receipt, given to the taxpayer, is suflcient. Shaefer et al. ii. Ketchum, 6 I. R. R. 4. Neither a Federal nor a State tribunal have any right to restrain the collection of a federal tax assessed by an officer having jurisdiction of the subject, be it ever so irregular or erroneous. By the common law, a citi-, zen could not replevin property seized for taxes. It was deemed im- politic to suffer such a remedy. According to English equity, an injunction could not be issued in such a case. Wide as the departures are fi'om these l^rinciples in some of the State courts, all disclaim the jurisdiction per se. aj the rarity and exceptional character of their interposition, they author- ize the assertion of the general rule that there was no remedy by injunction to prevent the collection of an illegal tax. Irrespective of all legislation, there was neither replevin nor injunction. The vsrong must be submitted to, and suit at law brought to recover damages for its infliction. When- ever the government seeks the property of a citizen, exercising the right of eminent domain, or by taxation in any of its numerous forms, the processes for seizure and assessment are, in the most plenary sense, within the discre- tion of the legislature. PuUan et al. ». Kinsinger et al. 11 I. R. R. 197; Grover et al. v. King, 8 I. R. R. 157 ; s. c. 3 A. L. Rev. 169 ; Roback i>. Tay- lor, 4 I. R. R. 170 ; Cutting et al. v. Gibert, 3 I. R. R. 93 ; s. c. 5 Blatch. 359 ; Clark et al. v. Gilbert, 4 I. R. R. 43 ; s. c. 5 Blatch. 330. Bill of Sale to be Evidence. Sec. 45. And he it further enacted, That in all cases of distraint and sale of goods or chattels for non-payment of taxes, duties, or licenses, as provided for, the bill of sale of such goods or chattels given by the officer making such sale, to the pur- chaser thereof, shall he prima facie evidence of the right of the officer to make such sale, and conclusive evidence of the regu- larity of his proceedings in selling the same. EULISTGS, DECISIOKS, ETC. 93 Enforcement in Insurrectionary Districts. Sec. 46. And he it further enacted. That if, for any cause, at any time after this act goes into operation, the laws of the United States cannot be executed in a State or Territory of the United States, or any part thereof, or within the District of Columbia, it shall be the duty of the President, and he is here- by authorized, to proceed to execute the provisions of this act witMn the limits of such State or Territory, or part thereof, or District of Columbia, so soon as the authority of the United States therein shall be re-established, and to collect the taxes, duties, and licenses in such States and Territories, under the regulations prescribed in this act, so far as applicable ; and where not applicable, the assessment and levy shall be made, and the time and manner of collection regulated, by the instruc- tions and directions of the Commissioner of Internal Revenue^ under the direction of the Secretary of the Treasury. Wlien Officers sliaU collect Direct Tax. Sec. 49'. And he it further enacted, That the officers who may be appointed under this act, except within those districts withia any State or Territory which- have been or may be other- wise especially provided for by law, shall be, and hereby are, authorized, in all caseTO^here the payment of such tax shall not have been assumed bv the State, to perform all the duties relat- ing to or regarding the assessment and collection of any direct tax imposed or which may be imposed by law. Seizure of Property used for Fraudulent Purposes. Sec. 48. (Amended July 13, 1866, § 9.) And he it further enacted, That all goods, wares, merchandise, articles, or objects, on which taxes are imposed by the provisions of law, whichshall be found in the possession, or custody, or within the control of any person or persons, for the purpose of being sold or removed by such person or persons in fraud of the internal revenue laws, or with design to avoid payment of said taxes, may be seized {a) by the collector or deputy collector of the proper district, or by such other collector or deputy collector as may be specially author- ized by the Commissioner of Internal Revenue for tliat purpose, and the same shall be forfeited to the United States ; and also all raw materials found in the possession of any person or per- sons intending to manufacture the same into articles of a kind subject to tax for the purpose of fraudulently selling such man- ufactured articles, or with design to evade the payment of said tax ; and also all tools, implements, instruments, and personal property whatsoever, in the place or building or within any yard or enclosure where such articles or such raw materials shall be 94 U. S. UfTEKIfAL REVENUE LAWS. found, may also be seized b,y any collector or deputy collector as aforesaid, and the same shall be forfeited as aforesaid ; and the proceedings to enforce said forfeiture shall be in the nature of a proceeding in rem (5) in the circuit or district court (/ the United States for the district where such seizure is made, or in any other court of competent jurisdiction. And any person who shall have in his custody or possession any such goods, wares, merchandise, articles, or objects, subject to tax as aforesaid, for the purpose of selling the same with the design of avoiding payment of the taxes imposed thereon, shall be liable to a penalty (o) of five hundred dollars, or not less than double the amount of taxes fraudulently attempted to be evaded, to be recovered in any court of competent jurisdiction; and the goods, wares, merchandise, articles, or objects, which shall be so seized by any collector or deputy collector, may, at the op- tion of the collector, be delivered to the marshal of said district, and remain in the care and custody of said marshal, and under his control, until he shall obtain possession by process of law, and the cost of seizure made before process issues shall be taxa- ble by the court : {d}) Provided^ That when the property so seized may be liable to perish or become greatly reduced in price or value by keeping, or when it cannot be kept wjJiout great expense, the owner thereof, the collector, or the marshal of the district, may apply to the assessor of the district to examine said property ; and if, in the opinion of said assessor, it shall be necessary that the said property should be sold to prevent such waste or ex- pense, he shall appraise tbe same ; and the owner thereupon shall have said property returned to Ijim upon giving bond in such form as may be prescribed by the Commissioner of Internal Eevenue, and in an amount equal to the appraised value, with such sureties as the said assessor shall deem good and sufficient, to abide the final order, decree, or judgment of the court having cognizance of the case, and to pay the amount of said appraised value to the collector, marshal, or otherwise, as he may be or- dered and directed by the court, which bond shall be filed by said assessor with the United States district attorney for the district in which said proceedings m rem may be commenced. Provided further, That in case said bond shall have been executed and the property returned before seizure thereof, by virtue of the process aforesaid, the marshal shall give notice of the pendency of proceedings in court to the parties executing said bond, by personal service or publication, and in manner and form as the court may direct, and the court shall thereupon have jurisdiction of said matter and parties in the same man- ner as if such property had been seized by virtue of the process aforesaid. But if said owner shall neglect or refuse to give said BTJLTNGS, DBOISIOXS, ETC. 95 bond, tile assessor shall issue to the collector or marshal afore- said an order to sell the same ; and the said collector or marshal shall thereupon advertise and sell the said property at public auction in the same manner as goods may be sold on final exe- cution in said district ; and the pi'oceeds of the sale, after de- ducting the reasonable costs of the seizure and sale, shall be paid to the court aforesaid, to abide its final order, decree, or judg- ment. (a) Where a seizure is made under this section, or any other section authorizing a seizure for fraud or violation of law, and is followed by pro- ceedings in rem, if a decree is obtained and sale made by order of court, the collector cannot, of course, receive a commission on proceeds of sale. The same rule must govern if the case is compromised pending the suit. In some cases, where taxes are due and fraud is suspected, it may be advisable to seize under this section or some other section authorizing seizure for fraud. In a case of this kind, if the seizure is converted into a distraint for taxes, and the goods or property are sold, the collector will, of course, charge the commission of five per cent, allowed by section 28. But if, after distraint in such case, and before sale, payment ism^de, or the case is compromised, the collector cannot charge a commission. 8 I. R. R. 203. In order to avoid giving cause of complaint to transportation com- panies, warehousemen, or other persons having a lien on the property, col- lectors, when they seize property in the custody of such companies or per- sons, should address and deliver to them a written statement, giving, for the purpose of identifying the property seized, an inventory of the differ- ent articles, mentioning the brands, numbers, and marks thereon, including, when they are known, the name and residence of the ostensible owner. They should also, in the snme statement, specify in general terms that the property is seized for violation of the internal revenue laws. If the property is removed from the custody of the company or bailee, , that fact should be stated in the paper, that they may be able to show that the property has properly passed from their possession. This statement should be signed by the seizing officer, or collector, or deputy collector, giving his full address. Where it is required, the seizing officer should .show that he is an officer authorized by law to make seizures. When property is forfeited, the collector should inform the company or bailee. If, however, it is released, upon compromise or otherwise, itshould be returned to the company or bailee, unless their consent is given that it be delivered directly to the claimant. 8 I. R. R. 203. The Commissioner is not confined to designating one collector to make general seizures, but may designate any collector or deputy collector not of the proper district, whenever in his opinion, the exercise of such author- ity becomes necessary and expedient. 5 I.'R. R. 44. No property seized by any internal revenue officer will be released by order of the Commissioner until the officer who made the seizure and the assessor and collector of the district have reported the facts in the case, with their recommendation, or have had ample opportunity to make such report or recommendation. 10 I, R. R. 5. The main question under this section is contained in the words, " for the purpose of being sold or removed by such person or persons in fraud of the internal revenue laws, or with the design to avoid the payment of said taxes." The circumstances attending the acquisition or receipt of the 96 u. s. inter:nal revbkue laws. property liable to taxes are to be taken into consideration by the juiy upon the question as to what the design of the parties was in regard to it, and in regard to selling and remoying it. The claimants knew these circum- stances, and it is for them to show these ; and if there is any doubt, em- barrassment, or difficulty, the point must be decided against them. The presumption is that the tax has not been paid. The government must show that the claimants knew, or had reasonable cause to believe, that the tax had not been paid. If a person, at the time he purchases and receives property, has reasonable ground to believe that the tax has been paid, and afterward finds out that the tax has not been paid, the property will be liable to seizure. In such case, after he finds out that the tax has not been paid, the property is in his possession with notice that the tax has not been paid. V. 8. v. Quantity of Spirits, 9 I. R. B. 9 ; s. c. 3, A. L. T. (0. R.) 23; U. S. V. 36 Bbls. 13 I. R. R. 40. The statute should receive a reasonable, not a strict, construction, so as to accomplish the intention of Congress. Distilled spirits in a distillery warehouse are in the possession of the owner of the spirits and ware- house. TJ. S. «. 36 Bbls. 13 I. R. R. 40. This section is very comprehensive. It embraces : 1st. All goods, arti- cles, or objects on which taxes are imposed by law, found in possession or within the control of any person for the purpose of being sold or removed, in fraud of the internal revenue, with intent to avoid payment of the taxes. 3d. All raw materials found in like possession or control, intended to be manufactured into articles of a kind subject to taxes, with the intent to sell the same, in fraud of the revenue ; and, 8d. All personal property what- soever found in the place or building, or within the yard or enclosure, where the articles or raw materials previously referred to were found or seized. The seizure of the articles in the third class stands on the ground of association with the guilty classes or articles. The fraudulent intent or purpose of the person in the possession or having the control of the arti- cles do not constitute the element of the offence or ground of forfeiture. Personal property thus situated is frequently used to facilitate the accom- plishment of the frauds provided against in the forepart of the section. Evidence is admissible to remove the guilt that arises from the condition of the property. The burden of proof rests upon the claimant, to make out to the satisfaction of the court and jury that the situation of the property is consistent with entire innogence on his part. When the evidence as to whether the articles claimed were within the place, building, yard, or en- closure, are all one way, the court need not submit the question to the jury. U. S. V. One still, 5 I. R. R. 188 ; s. c. 5 Blatch 403 ; U. S. v. 153 Bbls. 6 I. R. B. 303 ; U. S. ■». Quantity of Rags, 7 I. R. R. 123. Contra. By reason and analogy, as well as by the context, it is plain that some real connection with the fraud is intended to be attached to the property that is liable to seizure. The untaxed articles and the raw mate- rials intended to be manufactured are the principal things, and the tools, implements, instruments, and personal property are only the connected in- KULINGS, BEOISIONS, ETC. 97 •cidents. By the familiar rule of construction, noscitur a soeiis, the general words, "peraonal property,'' must be restricted by the more particular and immediately preceding words, " tools, implements, and instruments.'' The statute only forfeits the tools, implements, instruments, and personal prop- erty connected with the illegal business, and found within the building, yard, or enclosure where that business is carried on. U. S. i). 33 Bbls. 7 I. R. R. 55. (J) The proceeding is only re^iired to be in the nature of a proceed- ing in rem. It is left to the courts by rules and regulations to establish the practice to be obserYcd in conducting such proceedings, which practice, however, must conform in nature to the well-known proceedings m rem and which must, of course, be subject to any general statutory regulations thereto. U. S. «. 7 Bbls. 8 I. B. R. 163. The promulgation by the Supreme Court of rules for practice and plead- ings superseded such rules of the district courts as were in conflict there- with. An information, as mentioned in Rule XXII., is a proceeding against property liable to seizure and condemnation, where the proceedings fall on the exchequer or common law side of the court. The old mode of proceeding was very much like a declaration, where each cause of action was set out in a distinct count, subject, of course, to all the rules governing such technical modes of pleading. When the pleading, however, was re- quired to be done by articulation instead of the old common forms of counts, it was brought within the general modes used for libels in admir- alty. It saves the pleader from needless repetition in connection with each of the several causes of forfeiture. The flrsl proceeds to a general aver- ment, which is applicable all the way through to each articulation. The original pleading being by articulation, the issues should take the form of an answer instead of a plea proper. The design of the Supreme Court was to have a uniform mode of pleading in the three classes of cases, informa- tions, libels of information, and libels pure. The defendant, in pleading by answer, should affirm, admit, or controvert the allegations contained in each article, or admit part and controvert part, as the case may be. The neces- sity for a formal conclusion does not exist. The technical conclusion, if there be any for adoption in such cases, should be at the close of the an- swer to the various articles in the information, and that springs from the very nature of the case. The cause being a suit in rem, there is no de- fendant, properly speaking ; any one within the rules of law who has the right to appear and claim such property, may appear. Hence, so far as the conclusion is concerned, it may be the ordinary form of conclusion, "wherefore he prays that the said property may be delivered to him" — a simple prayer for restitution. The answer should aver that the charge made in a particular article is not true, if it is to be controverted ; or if it is to be admitted, say it is true, &c. Sometimes it may happen that there are many matters in one articulation, which the party pleading for the claim- ant may wish to separate. Then he can state : As to so and so, they are irue ; as to other matters, they are not true ; or he may take still the third 7 98 V. S. INTBENAIi EBVENUE LAWS. form, and may deny that they are any of them true, except as hereinafter stated, and then begin and state what he alleges to be the actual truth in regard to them. The averments of the answer must be positive. The pleadings must make issues. The information and belief should only be stated ji the verification. There the party is not required to state of his own knowledge that what he has stated in the answer is true ; but he must state that he knows, or that he has been informed, or that he believes it to be true. U. S. v. 35 Bbls. 10 I. E.Tl. 17. A motion to quash an information does not lie. A demurrer is the proper mode of reaching technical or substantial defects. Informations by United States district attorneys are amendable even after pleas filed, and in substance ; and such amendments may be allowed even by the judge at chambers. Counts can be stricken out and new ones inserted. Informations in rem in the exchequer side are not criminal proceedings. They are civiliter non criminalitei: The broad distinction between informations by the attorney-general and informations by private persons are well settled and uniformly recog- nized. Amendments can be made in the appellate court only when the suits are on the admiralty side of the court. Although the technical precision of an indictment is not necessary, yet the allegations must be sufficiently specific to enable the claimant to tra- verse them, and the court to see that, if true, a violation of the statute exists. The violation may be charged in the words of the statute, but a general avei-ment that the statute has been violated is not sufiBcient. Charges may be averred in the alternative, but each alternative ought to contain in itself a complete and substantive charge. The court may order a repleader, so that each charge may be pleaded in a separate article. A new res cannot be covered by way of amendment, for that would in- troduce a new subject or party, and change the nature of the proceedings. But when a res is before the court for an alleged forfeiture, the court will permit, by way of amendment, any new cause of forfeiture, consistent with the original nature of the suit, to be introduced by amendment. When, on the hearing, it appears that the res is not forfeited for any of the causes alleged, but for some other cause not charged, the court will alter the res to be detained to await further proceedings. Only one action in rem by the United States against the same res- should be pending at the same time. If, on the hearing of that cause, it should appear that the forfeiture had been incurred on other than the . grounds alleged, or if other causes of forfeiture existed which called for further proof, then, on the motion for restitution, the United States could object, and, on a petition or otherwise, ask for the detention of the res to await further proceedings. The formal mode of disputing the claimant's right to be heard, or status, is by exception, in the nature of a plea in abatement. U. S. v. 396 Bbls. 3 I. R. R. 133. RULINGS, DECISIONS, ETC. 99 If any one count in an information in rem is good in form and appli- cable to the case proved, objections to otber counts are disregarded. An amendment cannot be allowed without giving the claimant the option of a continuance. U. S. v. Whisky &c. 11 I. B. R. 109. , The government may procure an order requiring the claimant to pro- duce his books. This order may be served upon the claimant's attorney. The order must be complied vrith at the time of the trial, or an excuse given under oath by the party himself for a non-compliance with it. If the order is not complied with, nor a sufficient excuse given, the government may claim a judgment by default, and a forfeiture of the property. The sufficiency or insufficiency of the excuse has to be determined when it is produced. The court may postpone the case to allow the claimant to make the affidavit. U. S. v. 469 Bbls. 10 I. R. R. 265. The pendency of another information does not affect the question of the admissibility of evidence of other fraudulent acts similar to that charged. The range of such an inquiry must be determined according to the circumstances of each case. The period of time and its limit must be fixed in the discretion of the court. TJ. S. v. 36 Bbls. 13 I. R. R. 41. If there is any reasonable doubt arising upon the evidence, as to whether the government has established its case, within the rules of law applicable to the subject, the verdict should be for the claimant. The government must make out its case by a preponderance of evidence. It is not like a criminal case, where the defendant is entitled to the benefit of a reasonable doubt of guilt. U. S. v. Quantity of Spirits, 9 1. R. R. 9. The merits of the contrpversy do not depend upon the state of things existing at the time of the detention or seizure, but upon the question whether a forfeiture had previously been incurred. If it had been incur- red, the title of the United States will have relation to the time when it was incurred ; and the causes of forfeiture supposed by the seizing officer to have existed are in that case immaterial, if any sufficient cause alleged in the information is established by the evidence. In such cases the property is not forfeitable because it has been seized, but is seized because it was previously forfeited. It is wholly immaterial who makes the seizure, or whether it is irregularly made or not, or whether the cause assigned origin- ally for the seizure is that for which the condemnation takes place, provided the adjudication is for a sufficient cause. U. S. ». "Whisky &c. 11 1. R. R. 109 ; U. S.». 56 Bbls. 4 I. R. R. 106. The prosecution cannot be maintained except for the substantial causes which the information specifies ; and these cannot be supplied by evidence defining or adding to the specification of them in the evidence. U. S. v. Whisky &c. 11 I. R. R. 109. It is the offending thing that is forfeited. The entire right of property of all the world in the thing is cut off. The proceeding is m rem, and it is not the right of property therein of a mortgagor any more than the right of a mortgagee that is cut off. The thing is the offender, and the mort- gagee, by suffering the thing to be in such a position that the offence can be committed in respect of it, is just as much, in a legal sense, a partici- too U. S. INTERNAL EEVEinjB LAWS. pant in the offence, so far as me thing is concerned, as is the mortgagor, who actively uses the thing to commit the offence. The good or bad faith of the mortgagee is immaterial. U. S. o. Bislilled Spirits, 8 I. R. R. 81; s. c. 1 A. L. T. (C. R.) 103 ; TJ. S. -o. 31 Bbls. 6 I. R. R. 213 ; U. S. i). 20 Bbls. 9 I. E. R.4 ; U. S. V. 395 Bbls. 3 I. R. R. 185 ; Blair's Distillery, 3 I. R. R. 67, When forfeited spirits are mixed with other spirits owned by the claim- ant, the amount of the mixture that will be forfeited depends upon the intent with which the mixture was ma;de. Whenever goods of a similar kind are innocently mixed, so that they cannot be distinguished, and they are not substantially destroyed by the production of something of a differ- ent species, the several owners may reclaim their respective shares, and may take possession of the same wherever they can find their goods — if they can do so without a breach of the peace — or they may bring trover for the value of their respective shares against the person in possession, after de- mand and notice. When the intermixture is made wilfully, and not by mutual consent, the common law, to guard against fraud, gives the entire mixture to him whose property was originally invaded and its distinct character destroyed. There is a distinction between an innocent and a fraudulent act. Rectification does not change the species of the spirits. U. S. V. 56 Bbls. 4 I. R. R. 106 ; U. S. ■». 278 Bbls. 10 I. R. R. 164 ; s. c. 16 Pitts. L. J. 250 ; U. S. v. 54 Bbls. 9 I. R. R. 121. When a statute denounces a forfeiture of property as the penalty for the commission of a crime, if the denunciation is in direct terms, and not in the alternative, the forfeiture takes place at the time the offence is com- mitted, and operates as a statutory transfer of the right of property to the government. The T)onaJides of a purchase made subsequent to the forfeit- ure is immaterial. If the forfeiture took place prior to the purchase, the right of property was immediately transferred to the United States, and that right mtist prevail over the right of the purchaser, notwithstanding the purchase was made in good faith. U. S. v. 56 Bbls. 4 I. R. R. 106 ; U. S. V. 46 Casks, 5 I. R. E. 161. If an agent is cognizant of fraud at the time of the purchase of the spirits claimed, the principal is bound by that knowledge, whether the knowledge of the agent was acquired at that time or the day before. The principal is affected by the antecedent knowledge of the agent, if that knowledge is present in the mind of the agent at the time he makes the purchase. U. S. v: 278 Bbls. 10 I. R. R. 164 ; s. c. 16 Pitts. L. J. 350. The word "defendant," as used in the act May 8, 1792 (1 Stjt. 277), must be held to include a claimant in an action in rem for a forfeiture. No other party is before the court in such a proceeding to whom the word defendant can be applied. According to the act, when a verdict is ren- dered in favor of the government, a judgment must be entered condemn- ing the property as forfeited to the United States, and condemning the claimant to pay the costs ; and such decree will cover all the costs of the cause. The act makes no allusion to any exceptions, nor does it permit the court to exercise any discretion in the premises. The claimant is made by law subject to the costs, and to all the costs incurred in the cause. The KULINGS, DECISIONS, ETC. 101 amount is not limited to the amount fixed in the stipulation for costs. The fact that the claimant signed the stipulation did not increase his liability, nor can the stipulation have the eifectto diminish that liability -which the statute imposes upon him. As to the stipulator, the case is different. He is only liable by virtue of his stipulation, and that liability cannot exceed the amount of the stipulation. U. S. v. 7 Bbls. 8 I. R. R. 163. When the collector has seized property, and, on trial, a verdict has been rendered for the claimant, but certificate of probable cause is granted by the court, the collector must nevertheless return the property, or he will be liable to the owner. The certificate can only operate as a bar when the property is restored. The return of the property forthwith after judg- ment is a condition precedent to an exemption from liability. The court can only require the marshal to release the property from arrest. If the marshal neglects his duty, to the injury of the seizing officer, the latter must seek his remedy against the marshal. The collector is liable to a warehouseman for the storage of the goods during the time that they are under seizure. Smith v. Averill, 10 I. R. R. 156 ; s. c. 2 A. L. T. (C. R.) 1. (c) The penalty pronounced by this section may be recovered by an indictment. The indictment need not aver that the property was found in the possession of the defendant, nor need the jury find the quantity of property held by the defendant. U. S. v. Mattingly, 6 I. B. R. 19. The court has no discretion, but must always impose upon the convict, under this section, a penalty at least equal to double the amount of taxes fraudulently attempted to be evaded. The penalty cannot in any case be less than five hundred dollars, but may, and must, exceed this sum when double the amount of taxes fraudulently attempted to be evaded exceeds it. U. S. «. Smock, 4 I. R. R. 302. The government, in an action of debt for the penalty, must establish its case beyond all reasonable doubts. Yet, the course of the defendant may supply, in the presumptions of law, all which this stringent rule demands. The opening proof, unexplained and uncontradicted, must en- able the jury to find against the defendant for the claim of the govern- ment, or some material part of it. Then the defendant assumes the burden of proof In the end all reasonable doubt must be removed. If the de- fendant has the means of explanation in his power, the burden rests upon him. Where a party has proof in his power which, if produced, would throw light upon certain material facts, the law presumes against the party who omits to produce it, and authorizes the jury to resolve all doubts ad- versely to his defence. The same rule is applicable where a party once had proof in his power which has been voluntarily destroyed or placed beyond his reach. When the defendant omits to produce hisbooks and to testify him- self, the presumption of law is that he has deliberately and with full knowl- edge of the law and all its presumptions, elected to withhold the proof. The presumption of law is that the defendant did keep the accounts usual and necessary for the correct understanding of his business. The law also presumes them to be in existence and accessible to the defendant. If any additions have been made, by or with the concurrence of the defendant, to 102 V. S. INTERNAL EETENUE LAWS. the books, for the purpose of creating evidence contrary to the truth, it also raises a strong presumption against him. U. S. v. Chaflfe et al. 11 1. E. R. 110. (d) Although the act does not by express ter-ms confer upon the court the power to deliver to the claimant on bail, pending the proceedings, the property claimed to be forfeited to the United States, under its provisions, it is apparent that the intention of the act is that proceedings under it shall conform in this respect to the methods heretofore pursued in cases of seizure under previous revenue laws. The power of releasing property upon bail, pending the proceedings, has been in constant exercise in most, if not all, cases of seizure under the import acts, and been deemed to be one of the inherent powers of the court over property in its custody. In- deed, it would seem to be a power necessary to the proper exercise of the jurisdiction of the court in most cases in rem, for in such cases the pro- ceedings might sometimes prove futile, and the decree, when made, a barren one, without the exercise of such a power. Any other practice would be likely to entail upon the government lai-ge expense for the stor- age, custody, and care of all property seized as forfeited. Property held during long periods, to await the result of litigation, is necessarily subject to great risk of loss by fire, thieves, &c. IT. S. v. 300 Bbls. 4 I. R. R. 165 ; U. S. V. 69 Bbls. 3 1. R. R. 45 ; IT. S. ■». 3 Tons of Coal, 5 Blatch. 386. An application for permission to bail the property is an application for favor, and terms may be imposed. The claimant should be required to pay into the registry a sum of money equal to the amount of tax upon the prop- erty seized, to insure the liquidation of the tax in case of an acquittal of the property upon the charge in the information. TJ. S. v. Lot of Tobacco, 6 1. R. R. 332 ; s c. 2 Bt. 76. A distillery will not be bonded where there is reasonable ground to believe that the law has been violated. The court will withhold from parties who bkye deliberately provided themselves with the means of com- mitting frauds, the opportunity of carrying out their manifest intentions. U. S. V. Quantity of Spirits, 7 I. R. R. 39 ; s. c. 3 Bt. 101. Penalty for Fraudulent Beinoral or Concealment. [Sec. 14. Quiy 13, isee.) And be it further enacted, That in case any goods or commodities for or in respect whereof any tax is or shall be imposed, or any materials, utensils, or vessels proper or intended to be made use of for or in the making of such goods or commodities shall be removed, or shall be de- posited or concealed in any place, with intent to defraud the United States of such tax, or any part thereof, all such goods and commodities, and all such materials, utensils, and vessels, respectively, shall be forfeited ; and in every such case, and in every case where any goods or commodities shall be forfeited under this act, or any other act of Congress relating to the in- ternal revenue, all and singular the casks, vessels, cases, or other packages whatsoever, containing, or which shall have contained, such goods or commodities, respectively, and every vessel, boat, cart, carriage, or other conveyance whatsoever, and all horses RULINGS, BEOISIONS, ETC. 103 or other animals, and all things used in the removal or for the deposit or concealment thereof, respectively, shall be forfeited ; and every person who shall remove, deposit, or conceal, or be 'Concerned in removing, depositing, or concealing any goods or commodities for or in respect whereof any tax is or shall be im- posed, with intent to defraud the United States of such tax or any part thereof, shall be liable to a fine or penalty of not ex- ceeding five hundred dollars.] Issuing of Search Warrants. [Sec. 15. Quiy 13, ises) And he it further enacted, That the judge of any circuit or district court of the United States, or any commissioner thei'sof, may issue a search warrant, author- izing any internal revenue officer to search any premises, if such officer shall make oath in writing that he has reason to believe, and does delieve, that a fraud upon the revenue has been or is being committed upon or by the use of said premises.] Proceedings wlien Property is Wortli Less tlian $300. [Sec. 63. (July 13, isee. And he it further enacted, That here- after in all cases of seizure of any goods, wares, or merchandise which shall, in the opinion of the collector or deputy collector making such seizure, be of the appraised value of three hun- dred dollars or less, and which shall have been so seized as being subject to forfeiture under any of the provisions of this act, or of any act to which this is an amendment, excepting in cases otherwise provided, the s^d collector or deputy collector shall proceed as follows, {a) that is to say : He shall cause a list containing a particular description of the goods, wares, or mer- chandise seized to be prepared in duplicate, and an appraise- ment of the same to be made by three sworn appraisers, to be selected by him for said purpose, who shall be respectable and disinterested citizens of the United States residing within the collection district wherein the seizure was made. The afore- said list and appraisement shall be properly attested by such collector or deputy collector and the persons making the ap- praisement, for which service said appraisers shall be allowed the sum of one dollar and fifty cents per day each, to be paid as other necessary cbarges to collectors according to law. If the said goods shall be found by such appraisers to be of the value of three hundred dollars or less, the said collector or depiity collector shall publish a notice, for the space of three weeks, in some newspaper of the district where the seizure was made, describing the articles and stating the time, place, and cause of their seizure, and requiring any person or persons claiming them to appear and make such claim within thirty days of the date of the first publication of such notice. Provided, That any person or persons claiming the goods, 104 TJ. S. INTEKJfAL KBVEITUE LAWS. wares, or merchandise, so seized, within the time specified in the notice, may file with such collector or deputy collector a claim, stating his or their interest in the articles seized, and may execute a bond to the United States in the penal sum of two hundred and fifty dollars, with sureties, to be approved by said collector or deputy collector, conditioned that, in case of condemnation of the articles so seized, the obligors will pay all the costs and expenses of the proceedings, to obtain such con- demnation ; and upon the delivery of such. bond to the collector or deputy collector, he shall transmit the same, with the dupli- cate list or description of the goods seized, to the United States district attorney for the district, who shall proceed thereon in the ordinary manner prescribed by law. And provided also, That if there shall be no claim inter- posed, and no bond given within the time above specified, the collector or deputy collector, as the case may be, shall give ten days' notice of the sale of the goods, wares, or merchandise, by publication, and at the time and place specified in said notice shall sell the article so seized at public auction, and after de- ducting the expense of appraisement and sale he shall deposit the proceeds to the credit of the Secretary of the Treasury- And within one year after the sale of any goods, wares, or merchandise, as aforesaid, any person or persons claiming to be interested in the goods, wares, or merchandise so sold may apply to the Secretary of the Treasury for a remission of the forfeiture thereof, or any of them, and a restoration of the pro- ceeds of the said sale, which may be granted by the said Sec- retary upon satisfactory proof, to be famished in such manner as he shall prescribe : Provided, That it shall be satisfactorily shown that the ap- plicant, at the time of the seizure and sale of the goods in ques- tion, and during the intervening time, was absent out of the United States, or in such circumstances as prevented him from knowing.of such seizure, and that he did not know of the same ; and also that the said forfeiture was incurred without willful negligence or any intention of fraud on the part of the owner or owners of such goods. If no application for such restoration be made within one year, as hereinbefore prescribed, then, at the expiration of the said time, the Secretary of the Treasury shall cause the proceeds of the sale of the said goods, wares, or merchandise to be distributed according to law, as in the case of goods, wares, or merchandise condemned and sold pursuant to the decree of a competent court.] {a) The provisions of this section are imperative, and must be stnotly foUowed, as far as appraisement is concerned, in all cases where the prop- erty seized is, in the first instance, in the opinion of the collector or deputy collector making the seizure, of the value of three hundred dollars or less, and is finally so found upon appraisement. Immediately after the seizure and appraisement provided for, the col- KtTLIKGS, DECISIONS, ETC. 105 lector will report such seizure to the Office of Internal Revenue, in Form 117, stating what proceedings have been taken. After a sale has been effected (which sale should be made as early as practicable after the seizure, provided the claimants do not give the re- quired bond, and thus take the case into the United States Court), the col- lector will forward to the Commissioner a full and particular account of his action, giving each item of expense incurred, supported by proper vouchers, when it is possible to obtain them. No jte™ of expense will be allowed unless it is shown that the same was necessarily incurred. A collector is expected to exercise the same care in the above regard that he would in the conduct of similar affairs of his own, incurring no expense that can be avoided. Collectors are entitled to no commissions upon sales made under this section. The entire net proceeds of sales should at once, after payment of the expenses, be deposited to the credit of the Secretary of the Treasury, and the duplicate certificate of deposit forwarded to the Commissioner, accom- panied by a letter of transmittal, stating the section of law under which the proceedings had been taken, which information should also appear upon the face of the certificate. * Should the claimants give bond, as provided in this section, the col- lector will advise the Office of Internal Revenue. It will be observed, however, that the execution of such bond does not entitle the claimants to the possession of the property seized. The three weeks' notice requiring the parties to appear, make claims, &c., and the ten days' notice of sale, need appear only in the weekly issues of the paper advertising such notices. In cases where the value of the property seized is so small that it will not warrant proceedings for its sale by itself, under the section mentioned, the property may be stored in the least expensive manner possible until such time as a sufficient amount of property similarly situated has accu- mulated to warrant the expense of sale, when the several lots may be sold together, and treated as a unit, so far as incurring expense is concerned ; but in the notice to appear, &c. , each particular lot should be so distinctly described as to render it capable of identification by any person desiring to make claims thereto. And, in finally returning the cases to the Commis- sioner, separate and distinct reports of.each must be made. In such cases the total expense incurred must be divided among the several lots of prop- erty, and to the account of each must be charged its proportionate share of such expense. The collector should see that the expenses in no par- ticular case exceed the gross proceeds of sale, as in that event he would be the loser, as there is no provision of law for the payment of such excess. "The action of a collector will not in any case be approved by the Commis- sioner unless in strict compliance with these regulations. If, at the expiration of, or after the sale, no application has been made and granted for the restoration of the proceeds, the same will be distrib- uted according to law by the Secretary of the Treasury, and no consider- ation will be given to the claim of an informer prior to the expiration of such period. The provisions of section 58, Act of July 30, 1868, requiring that dis- tilled spirits which have been forfeited to the government be sold subject to tax, have no application to sales under this section. The former section refers to sales after a decree of forfeiture and of property adjudged to belong to the government, in which no one else has an interest ; while, under the latter section, the sale is made while the title to the property is yet in doubt, and when the government has no ascertained right to it further than to effect a sale. Spirits may, therefore, be sold under this section to the highest bidder, whatever his offer maybe. 8 I. R. R. 303. 106 U. S. IlfTERNAL BEVENUB LAWS Provisions relating to Returns to Applyto all Persons liable to Tax. Sec. 49. And he it further enacted, That all the provis- ions hereinafter made for the delivery of- returns, lists, state- ments, and valuations, or for additions to the duty in case of false or fraudulent lists or returns, or in case of undervaluation or understatement on lists or returns, or in case of refusal or neglect to deliver lists or returns, and for the imposition of fines, penalties, and forfeitures, shall be held and taken to ap- ply to all persons, associations, corporations, or companies liable to pay duty or tax ; and any additions to duties, fines, -penalties, or forfeitures hereinafter imposed for failure to per- form any duty required to be performed, shall be held and taken to be additional to those hereinbefore provided. Sec. 50. Rejjealed July 13, 1866, § 68. Adoption of Act August 6, 1846. Sec. 51. And he it further enacted, That the provisions of the sixteenth section of the act approved August sixth, eighteen hundred and forty-six, entitled " An act to provide for the better organization of the treasury, and for the collec- tion, safe-keeping, transfer, and disbursement of the public revenue," are hereby applied to, and shall be construed to include all officers of the internal revenue charged with the safe-keeping, transfer, or disbursement of the public moneys arising therefrom, and to all other persons having actual charge, custody, or control of moneys or accounts arising from the administration of the internal i-evenue. Penalty for Embezzlement. [Sec. 16. (August e, 1846.) And he it further enacted, That all officers and other persons charged by this act, or any other act, with the safe keeping, transfer, and disbursement of the public moneys, other than those connected with the post-office de- partment, are hereby required to keep an accurate entry of each sum received, and of each payment or transfer ; and that if any one of the said officers, or of those connected with the post-office department, shall convert to his own use, in any way whatever, or shall use, by way of investment in any kind of property or merchandise, or shall loan, with or without interest, or shall deposit in any bank, or shall exchange for other funds, except as allowed by this act, any portion of the public moneys intrusted to him for safe-keeping, disbursement, or transfer, or for any other purpose, every such act shall be deemed and adjudged to be an embezzlement {a) of so much of the said moneys as shall be thus taken, converted, invested, used, loaned, deposited, or exchanged, which is hereby declared to be a felony ; and any failure to pay over or to produce the EULINGS, DBOISIOIfS, ETC. 107 public moneys entrusted to such person shall be held and taken to \y& prima facie evidence of such embezzlement, and if any officer charged with the disburseijients of public moneys shall accept, or receive, or transmit to the Treasury Department to be allowed in his favor, any receipt or voucher from a creditor of the United States, without having paid to such creditor, in such funds as the said officer may have received for disburse- ment, or such other funds as he may be authorized by this act to take in exchange, the full amount speciiied in such receipt or voucher, every such act shall be deemed to be a conversion by such officer to his own use of the amount specified in such receipt or voucher ; and any officer or agent of the United States, and all persons advising or participating in such act, being convicted thereof before any coiwt of the U nited States of competent jurisdiction, shall be sentenced to imprisonment for aterm of not less than six months nor more than ten years, and to a fine equal to the amount of the money embezzled. And upon the trial of any indictment against any person for embezzling public money under the provisions of this act, it shall be sufficient evidence, for the purpose of showing a balance against such person, to produce a transcript from the books and proceedings of the treasury, as required in civil cases, under the provisions of the act entitled " An apt to pro- vide more effisctually for the settlement of accounts between the United States and receivers of public money," approved March third, one thousand seven hundred and ninety-seven ; and the provisions of this act shall be so construed as to apply to all persons charged with the safe keeping, transfer, or dis- bursement of the public money, whether such persons be in- dicted as receivers or depositaries of the same ; and the refusal of such person, whether in or out of office, to pay any draft, order, or warrant which may be drawn upon him by the proper officer of the Treasury Department, for any public money in his hands belonging to the United States, no matter in what capacity the same may have been received or may be held, or to transfer or disburse any such money promptly, upon the legal requirement of any authorized officer of the United States, shall be deemed and taken, upon the trial of any indict- ment against such person for embezzlement, as prima facie evidence of such embezzlement.] (a) When, with the sanction of the head of a department, a person is appointed an ofBcer of the United States for the safe keeping of public money, such appointment constitutes him such officer within the meaning of the constitution of the United States, and of the statutes of the United States, in regard to officers charged with the safe keeping of public money. U. S. «. Hartwell, 7 I.E. E. 100; U. S. v. Blumgart, 7 I. E. E. -148. This clause is to be taken digtributively. It applies, and was clearly intended to apply, to all the acts of embezzlement specified in the section ; 108 U. S. INTBBNAIi REVENUE LAWS. to those relating to moneys in the first category as well as to those relating to vouchers in the second. The only effect of the provisions and require- ments which are only applicable to the higher officers is that they only operate, according to their terms, where such higher officers are concerned. They are without efiect as to subordinates to whom they are inapplicable. They do not take offenders of that class out of the penal and other pro- visions of the statute. U. S. ». Hart well et al. 7 I. E. R. 100. Objections to the action of the grand jury, when an indictment is found, ought to be made as early as practicable. Admitted rights may be waived by laches even in criminal cases. The court will not postpone sentence for the purpose of giving the defendant an opportunity to obtain a pardon. It is a part of the duty of the district attorney, and not of the court, to de- termine whether the public interest requires that the testimony of an accom- plice shall be received, and whether his conduct is such as constitutes a compliance with the legal conditions which give him an equitable right to executive clemency. Cases may arise where the court would defer sentence. U. S. V. Hartwell et al. 12 I. R. R. 50. On an application for a commitment, the government is not required to produce that proof which would be necessary to convict the person to be committed on a trial in chief, nor to absolutely convince the commit- ting officer of the guilt of the accused. It is only necessary that probable cause be shown. Probable cause means a case made out by proof fur- nishing good reason to believe that the crime alleged has been committed by the person charged with having committed it. U. S. v. Blumgart, ^ I. R. R. 148. Suits to Recover Money Withheld by Officers. [Sec. 1. (March 3, 1797.) J3e it enacted Ity the Senate and House of Representatives of the United States of America in Con- gress assembled, That when any revenue officer, or other per- son accountable for public money, shall neglect or refuse to pay into the treasury the sum or balance reported to be due to the United States upon the adjustment of his account, it shall be the duty of the Comptroller, and he is hereby required, to institute suit for the recovery of the same, adding to the sum stated to be due on such account the commissions of the de- linquent, which shall be forfeited in every instance where suit is commenced and judgment obtained thereon, and an interest of six per cent, per annum, from the time of receiving the money, until it shall be repaid into the treasury.] Transcripts to be Evidence. Sec. 2. (March 3, 1797.) And le it further enacted, That in every case of delinquency, where suit has been or shall be in- stituted, a transcript from the books and proceedings of the treasury, certified by the register, and authenticated under the seal of the department, shall be admitted as evidence, and the court trying the cause shall be thereupon authorized to grant RULINGS, DECISIONS, ETC. 109 iudgment and award execution accordingly. And all copies of "bonds, contracts, or other papers' relating to or connected with the settlement of any account between the United States and an individual, when certified by the register to be true copies of the originals on file, and authenticated under the seal of the department, as aforesaid, may be annexed to such transcripts, and shall have equal validity and be entitled to the same de- gree of credit which would be due to the original papers if pro- duced and authenticated in court : Provided, That* where suit is brought upon a bond, or other sealed instrument, and the defendant shall plead "non estfaoturfi" or upon motion to the court, such plea or motion being verified by the oath or affirmation of the defendant, it shall be lawful for the court to take the same into considera- tion and (if it shall appear to be necessary for the attainment of justice) to require the production of the original bond, con- tract, or other paper specified in such affidavit.] Who May Administer Oatlis. Sec. 53. (Amended March 3, 1865, § i.) And he it further enacted, That all assessors and their assistants, all collectors and their deputies, revenue agents, and all inspectors, are hereby au- thorized to administer oaths {a) and take evidence touchiii^ any part of the administration of this law with which they are respectively charged, or where such oaths and evidence are by law authorized to be taken ; and any perjury therein shall be punished in the like manner, and to the same degree, as in the case of perjury committed in proceedings in the courts of the United States. (a) Tlie authority to administer oaths is not general as to all matters connected with the revenue, but is limited to matters connected with the official discharge of some duty imposed by law upon the otiicer adminis- tering it. An assessor is authorized to administer the proper oath to persons making to him a return for taxation ; to his deputies in making their re- turns, and in verifying their accounts for serrices and expenses ; and to his own clerks in verifying their accounts ; but he is not authorized to administer such oath or affirmation to a collector, his deputies or clerks, nor in any case except where such oath or affirmation is necessary to the discharge of his own' duties. A collector is authorized to administer oaths and affirmations where they are required to returns or reports made to him ; and to his own deputies and clerks in matters connected with the discharge of his official duties ; but he is not authorized to administer them to an assessor, his assistants or clerks ; nor can his deputies administer them to the collector or his clerks, or each other ; nor to the assessor, his assistants or clerks. 1 1. R. R. 3. ' In verifying accounts it is necessary that the same should be sworn to before an assessor, an assistant assessor, collector, deputy collector. United States commissioner, clerk of court, notary public, judge, or jus- tice of the peace. In cases of verification before the last two mentioned officers, a clerk's certificate of the official character of the person adminis- 110 V. S. INTEEXAX; EEVENUE LAWS. tering the oath must be properly attached. When either of the above- named officers have an official seal, an impression thereof should accom- pany the jurat. 11 1. R. R. 89. Official Coiiuiiiuiications to be Franked, [Seo. 65. (July 13, i866.) Afid he it further enacted, That all official communications made by assessors to collectors, asses- sors to assessors, or by collectors to collectors, or by collectors to assessors, or by assessors to assistant assessors, or by assistant assessors to assessors, or by collectors to their deputies, or by deputy collectors to collectors, may be officially franked by the writers thereof, and shall, when so franked, be transmitted by mail free of postage.] OlBcers Not to be Interested in Distilleries, etc. [Sec. 59. (July 13, isee.) And he it further enacted, That any inspector or revenue agent who shall hereafter become inter- ested, directly or indirectly, in the manufacture of tobacco, snuff, or cigars, and any assessor, collector, inspector, or reve- nue agent, who shall hereafter become interested, directly or indirectly, in the production, by distillation or by other pro- cess, of spirits, ale, or beer, or other fermented liquors, shall, oji conviction before any court of the United States of compe- tent jurisdiction, pay a penalty not less than five hundred dol- lars nor more than five thousand dollars, in the discretion of the court. And any such officer, interested as aforesaid in any such manufacture at the time this act takes effect, who shall tail to divest himself of such interest within sixty days there- after, shall be held and declared to have become so interested after this act takes effect.] Officers to Kender an Account of Fees to Commissioner. [Sec. 60. (July 13, isee.) And he it further enacted. That eveiy internal revenue officer, whose payment, charges, salary, or compensation shall be composed, either wholly or in part, of fees, commissions, allowances, or rewards, from whatever source derived, shall be required to render to the Commissioner of In- ternal Eevenue, under regulations to be approved by the Secre- tary of the Treasury, a statement under oath setting forth the entire amount of such fees, commissions, emoluments, allow- ances or rewards of whatever nature, or from whatever source received, during the time for which said statement is rendered ; and any false statement knowingly and willfully rendered under the requirements of this section, or regulations established in accordance therewith, shall be deemed willful perjury, and punished on conviction thereof, as provided in section forty-two of the act of June thirty, eighteen hundred and sixty-four, to which this act is an amendment ; and any neglect or omission to render such statement when required shall be punished on EUtlNGS, DECISIONS, ETC. Ill conviction therefor by a fine of not less than two hundred dol- lars nor more than five hundred dollars, in the discretion of the court.] Seos. 53, 54, 65, 56, 57, Repealed July 13, 1866, § 9. Appomtment of Inspectors. Sec. 58. (Amended July 13, i866, § 30.) And 1)6 it further enactedy That there shall be appointed by the Secretary of the Treasury, in every collection district where the same may be necessary, one or more inspectors of spirits, refined coal oil or other oil, tobacco, cigars, and other articles, who shall take an oath faith- fully to perform their duties, in such form as the Commissionei' of Internal Revenue shall prescribe, and who shall be entitled to receive such fees as may be fixed and prescribed by said Commissioner, to be paid by the owner or manufacturer of the articles inspected, gauged, or proved. And any manufacturer of spirits, refined coal oil or other oil, tobacco, cigars, or other articles which may by law be required to be inspected, who shall refuse to admit an inspector upon his premises, so far as it may be necessary for the performance of his duties, or who shall obstruct an inspector in the performance of his duties, shall forfeit the sum of one hundred dollars, to be recovered in the manner provided for other penalties imposed by this act. Commissioner to Designate Officers to Inspect Distilled Spirits. [Sec. 17. (March 2, 1867.) And le it further enacted, That hereafter all distilled spirits, before being removed from the distillery, shall be inspected and gauged by a general inspector of spirits, who shall mark the barrels or packages in the man- ner required by law ; and so much of the act approved July thirteen, eighteen hundred and sixty-six, as requires the appointment of an inspector for each distillery established according to law, is hereby repealed: Provided, That such other duties as have heretofore been imposed upon inspectors of distilleries may be performed by such other duly appointed officers as may be designated by the Commissioner of Internal Kevenue.] Inspectors to Grire Bond. [Sec. 31. (March 2, 1867.) And le it further enacted, That all inspectors appointed under the provisions of the act or acts of which this is amendatory shall be required to give bonds, with security, approved by the Secretary of the Treasury or assessor of the district, in a sum not less than five thousand dollars, conditioned for the faithful discharge of the duties of such in- spector.] 112 U. S. INTEENAL EBVBNUE LAWS. Sec. 59. Repealed July 13, 1866, § 9. ■ Secs. 62, 63, 64, 65, 66, 67, 68, 69; YO, Repealed July 13, 1866, § 9. FERMENTED LIQUORS, Brewers to Give Notice. [Sec. 46. (juiy 13, i866.) ^nd le it further enacted, That every brewer shall, before commencing or continuing business after this act takes effect, file with the assistant assessor of the assessment district in which he shall design to carry on his business, a notice {a) in writing, stating therein the name of the person, company, corporation, or firm, and the names of the members of any such company or firm, together with the place or places of residence of such person or persons, and a descrip- tion of the premises on which the brewery is situated, and of his or their title thereto, and the name or names of the owner or owners thereof ; and also the whole quantity of malt liquors annually made and sold or removed from the brewery for two years next preceding the date of filing such notice.] {a) The notice required by this section should bte in the following form : BKBWEES' NOTICE. 18T-. Notice is hereby given that (if a partnership, insert here the name of each person comprised in the firm, whether as general or special partner, with the place of residence of each), of in the county of and State of under the firm intend to carry on as here- tofore — ha — done at in the town of in the county and State aforesaid, the business of brewing beer (lager beer, ale,_ porter, or other fermented liquors). The premises on which our brewery is situated are bounded in general as follows : (boundaries of premises to be inserted here). The brewery consists of the following buildings: (buildings to be designated here). The other buildings on the premises are as follows : (the other buildings to be indicated here). The premises are owned by (or leased to) us (by a lease from , who are the owners thereof). For the two years next preceding the date the whole quantity of malt liquors annually made and sold or removed from the brewery has been as follows : For the year ending 1869, bbls. For the year ending 1870, bbls. (Signed) The assistant assessor with whom this notice is filed will immediately forward a certified copy thereof to both the assessor and collector of the district: 4 I. E. E. 84. Bonds to be Given. [Sec. 4Y. auiy 13, isee.) And he it further enacted, That every brewer shall execute a bond {a) to the United States, to be ap- RULINGS, DECISIONS, ETC. 113 proved by the collector of the district, in a sum equal to twice the amount of tax which, in the opinion of the assessor, said brewer will be liable to pay during any one month, which bond shall be renewed on the first day of May in each year, and shall be conditioned that he will pay, or cause to be paid, as herein provided, the tax required by law on all beer, lager beer, ale, porter, and other fermented liquors aforesaid made by him, or for him, before the same is sold or removed for consumption or sale, except as hereinafter provided ; and that he will keep, or cause to be kept, a book in the manner and for the purposes hereinafter specified, which shall be open to inspection by the proper officers as by law required, and that he will in all re- spects faithfully comply, without fraud or evasion, with all re- quirements of law relating to the manufacture and sale of any malt liquors before mentioned : Provided, That no brewer shall be required to pay a special tax as a wholesale dealer, by reason of selling at whole- sale, at a place other than his brewery, malt liquors manufac- tured by him.] (a) The bond I'equired by this section must be renewed on the fli-st day of May in each year, after Form 20, and in compliance with in- structions, therein. Amount of Tax. [Sec. 48. Ouiyi3,i866; amended March 2, 1867,^10.) And }>e it further enacted, That there shall be paid on all beer, lager beer, ale, porter, and other similar fermented liquors, by whatever name such liquors may be called, a tax (a) of one dollar for every barrel containing not more than thirty-one gallons ; and at a like rate for any other quantity or for any fractional part of a barrel which shall be brewed or manufactured and sold, or re- moved for consumption or sale, within the United States • which tax shall be paid by the owner, agent, or superintendent of the brewery or premises in which such fermented liquors shall be made, in the manner and at the time hereinafter speci- fied ; Provided, That fractional parts of a barrel shall be halves thirds, quarters, sixths, and eighths ; and any fractional part of a barrel containing less than one-eighth shall be accounted one- eighth; more than one-eighth and not more than one-sixth shall be accounted one-sixth; more than one sixth and not more than one-quarter, shall be accounted one-quarter ; more than one-quarter and not more than one-third, shall be ac- counted one-third ; and more than on6-third and less than one- half, shall be accounted one-half; more than one-half and not more than one barrel, shall be accounted one barrel ; and more 114 U. S. IKTEKJfAL KEVEIfUE LAWS. than one barrel and not more than sixty-three gallons, shall be accounted two barrels, or a hogshead : Provided, That fractional parts of barrels containing more than one-quarter and not more than one-half, shall be accounted one-half; and pay tax as such until June first, eighteen hun- dred and sixty-seven.] (aj) The tax mentioned in this section is to be paid by the owner, agent, or superintendent of the brewery or premises in which such fer- mented liquors shall be made ; and stamps for that purpose are to be purchased and used as hereinafter required. 4 I. R. R. 84. A beer containing not more than 2^ per cent, of alcohol is properly denominated small beer, and is exempt. Weiss beer is exempt. When- ever a fermented liquor is put up in barrels it is subject to tax. 13 I. R. K 29. Cider, beer, ale and wine contain alcohol, but they are jjroduced by fermentation ; and inasmuch as they are not produced by distillation they are not subject to the tax on distilled spirits. 5 I. R. R. 59. If a brewer purchase his products from another brewer before they have fermented and mixes them with flat beer for the purpose of creating a new fermentation, the purchaser who thus manufactures a salable arti- cle of beer, must pay a tax on the full amount sold by him, or removed for consumption or sale ; but such products sold before fermentation need not be included in the monthly account of beer, &c., sold by the person who sells it. 5 I. R. R. 45. Brewers may be allowed to deduct the amount of beer which has be- come sour on their hands, or which has been returned to theiii in that condition ; but no deductions can be allowed for the amount of beer con- sumed by their workmen, or for the amount which may be presented as a gift to their customers. That which leaks before removal from the brew- ery is not to be holden for the tax. 1 I. R. R. 196 ; 3 I. R. R. 28. The words " removed for consumption or sale," are separated by the disjunctive " or " from the words " manufactured and sold," as they must have been, in order to make the provision intelligible. The obvious in- tent of the law is to subject all of this class of beverages in the hands of the manufacturer made after the first day of September, 1862, to a uniform tax, and the time when such tax shall become payable is fixed at the date when the same shall be sold, or removed for consumption oi- sale. When the manufachirer sells it, then the tax will become payable. When he sends it to any place owned by himself or another for consumption, then the tax will become payab'e. When he removes it to a commission house or any other place for sale, then it will become payable. The law intends to make removal for consumption or sale equivalent to a sale, and requires the manufacturer, when he shall either sell or remove for consump- tion or future sale, to at once pay the tax. Shaefer ». Ketchum, 6 I. R. R. 4. Books to be kept. [Sec. 49. (juiy 13, isee.) Andle it further enacted, That every person owning or occupying any brewery or premises used, or intended to be used, for the purpose of brewing or making suc4 fermented liquors, or who shall have such premises under his EULINGS, DECISIONS, ETC. 115 (Control or superintendence as agent for tlie owner or occupant, or shall have in his possession or custody any brewing mate- rials, utensils, or apparatus, used or intended to be used on said premises in the manufacture of beer, lager beer, ale, porter, or other similar fermented liquors, either as owner, agent, or superintendent, shall, from day to day, enter or cause to be en- tered, in a book {a) to be kept by him for that purpose, the kind of such fermented liquors, the description of packages, and number of barrels and fractional parts of barrels of fermented liquors made, and also the quantity sold or removed for con- sumption or sale, and shall also, from day to day, enter or cause to be entered, in a separate book, to be kept by him for that purpose, an account of all material by him purchased for the purpose of producing such fermented liquors, including grain and malt; and shall render to said assessor or assistant assessor, on or before the tenth day of each month, a true statement in writing, taken from his books, of the whole quantity or num- ■ber of barrels and fractional parts of barrels of fermented liquors brewed and sold, or removed for consumption or sale, 'during the preceding month; and shall verify, or cause to be veriiled, the said statement, and the facts therein set forth, by ■oath or affirmation to be taken before the assessor or assistant assessor of the district, according to the form required by law, and shall immediately forward to the collector ot the district a •duplicate of said statement, duly certified by the assessor or as- sistant assessor. And said books shall be open at all times for the inspection of any assessor or assistant assessor, collector, deputy collector, inspector, or revenue agent, who may take memoranda and transcripts therefrom.] {(i) Two books are required to be kept by every person engaged in the production of fermented liquors. Form 104 is recommended for the book for recording tbe qualities made, removed, and sold. In a separate book is to be entered, from day to day, an account of all materials purchased by him for the purpose of producing fermented liquors, including grain and malt, in such form as shall be-distinct, and explicit, and convenient for reference. The entries made in this book must, on or before the tenth day of each month, be verified by the oath or affirmation of the pe son or persons by vrhom such entries shall have been made, which oath or affirmation must be written in the books respectively, at the end of such entries, ^nd be certified by the officer administering the same; and said books are re- quired to be open at all times for the inspection of any assessor, or assist- ant assessor, collector, deputy collector, inspector, or revenue agent who may take memoranda therelrom. For verification of the book containing tbe entries of materials pur- chased, the same form is to be used as given in Form 104, except that for the words, " fermented liquors brewed, the quantity sold, and the quantity removed from," the words, " material purchased for the purpose of producing fermented liquors in," should be substituted, and the owner,- agent, or superintendent, when the entries are not made by himself, must further verify them in the manner shown by Form 104. ■« 116 U. S. INTEBNAL REVENUE LAWS. Every person owning or occupying, or having under his control or superintendence as agent for the owner or occupant any brewery or prem- ises used for making fermented liquors, or having in his possession or custody, as agent, owner, or superintendent, any brewing materials, utensils, or apparatus used or intended to be used on such premises in the manu- facture of fermented liquors, is liable to punishment if these books are not kept as required by law. On or before the tenth day of each month there must be rendered to the assessor or assistant assessor a true statement in writing (Fonn 18) of the whole quantity or number of barrels and fractional parts of barrels of fermented liquors brewed and sold, or removed for consumption and sale, during the preceding month, verified by oath, and a duplicate of said statement, duly ceitifled by the assessor or assistant assessor, must be im- mediately forwarded to the collector of the district. Every brewer who sells fei-mented liquors at retail, besides affixing and cancelling the proper stamps on the vessels in which the same is contained, is required to keep an account of the quantily so sold by him, and of the number and size of the vessels in which the same may have been con- tained, and to make a report thereof, verified by oath, monthly to the assessor, and forward a duplicate of the same to the collector. All returns made by brewers to the assessor must be forwarded by that ofiicer to the assistant assessor within whose division the brewery is located for which any return has been so rendered, for the purpose of placing the assistant assessor in possession of all facts necessary to the . proper performance of his duties. 4 I. E. E. 84. An indictment need not be founded upon a j)revious information, ar- rest, hearing and binding over, but may be sent up solely at the instance and in the discretion of the prosecuting officer of the government. U. S. ». Fuers, 13 I. E. E. 43. Verification of Entries. [Sec. 50. amy 13, isee.) And he it further enacted, That the entries made in such books shall, on or before the tenth day of each month, be verified by the oath or affirmation of the per- son or persons by whom such entries shall have been made, which oath or affirmation shall be written in the book at the end of such entries, and" be certified by the officer administer- ing the same, and shall be in form as follows : " I do swear (or affirm) that the foregoing entries were made by me, and that • they state truly, according to the best of my knowledge and be- lief, the whole quantity of fermented liquors brewed, the quan- tity sold, and the quantity removed from the brewery owned by — '- , in the county of . And further, that I have no knowledge of any matter or thing, required by law to be stated in said entries, which has been omitted therefrom." And the owner, agent, or superintendent aforesaid, shall also, in case the original entries made in his books shall not have been made by himself, subjoin thereto the following oath or affirmation, to betaken in manner as aforesaid: "I do swear (or affirm) that, to the best of my knowledge and belief, the foregoing entries fully set forth all the matters therein required KULINGS, DECISIONS, ETC. 117 "by law, and that the same arc just and true, and that I have taken all the means in my power to make them so."] Penalty for Illicit Brewing'. [Sec. 51. (juiy 13, isee.) And he it further enacted, That the owner, agent, or superintendent of any brewery, vessels, or utensils used in making fermented liquors, who shall evade or attempt to evade the payment of the .tax thereon, or fraudu- lently neglect or refuse to make true and exact entry and re- port of the same in the manner required by law, or to do or cause to be done any of the things by law required to be done by him as aforesaid, or who shall intentionally make false entry in said book or in said statement, or knowingly allow or pro- cure the same to be done, shall forfeit, for every such offence, ,all the liquors made by him or for him, and all the vessels, aitensils, and apparatus used in making the same, and be liable to a penalty of not less than five hundred nor more than one thousand dollars, to be recovered with costs of suit, and shajl be deemed guilty of a misdemeanor, and shall be imprisoned for a term not exceeding one year. And any brewer who shall neglect to keep the books, or refuse to furnish the account and duplicate thereof as provided by law, or who shall refuse to permit the proper officer to examine the books in the manner provided, shall, for every such refusal or neglect, forfeit and pay the sum of three hundred dollars-] Stamps to be used. [Sec. 52. amy 13, isee.) And be it further enacted. That the Commissioner of Internal Revenue shall cause to be prepared, for the payment of the tax aforesaid, suitable stamps (a) de- noting the amount of tax required to be paid on the hogshead, barrels, and halves, quarters, sixths, and eighths of a barrel of such fermented liquors, and shall furnish the same to the col- lectors of internal revenue, who shall each be required to keep on hand, at all times, a supply equal in amount to two months' sales thereof, if there shall be any brewery or brewery ware- house in his district, and the same shall be sold by such collect- ors only to the brewers of their districts, respectively ; and such collectors shall keep an account of the number and values of the stamps sold by them to each of such brewers, respectively ; and the Commissioner of Internal Revenue shall allow upon all sales of such stamps to any brewer, and by him used in his business, a deduction of seven and one-half per centum. And the amount paid into the treasury by any collector on account of the sale of such stamps to brewers shall be included in.esti- .mating the commissions of such collector and of the assessor of ;the same district.] 118 U. S. INTERNAL REVENUE LAWS. (a) The collector of internal revenue, in any district in which there- shall be a brewery or brewery warehouse, will be furnished by the Com- missioner with stamps denoting the tax on fermented liquors ; will keep the same for sale to the brewers of his own district alone for use in their business ; and will allow to such brewers a deduction of seven and one- half per centum of the value denoted by the stamps which he sells to them. Every brewer desiring. to obtain stamps denoting payment of the tax on fermented liquors, will first apply to the collector of the district in' which his brewery is situated ; failing to obtain them of such collector, he may apply to the collector of any other district, and the last-named collector, upon satisfying himself of a previous application and refusal, as before specified, may furnish to him the desired stamps ; these stamps are to be affixed upon every vessel containing fermented liquor when sold, or removed from the brewery or warehouse ; this requirement is also- obligatory upon brewers selling at retail at theur breweries. It is necessary that the stamps should be well secured to the vessels, alid not easily removed therefrom, except by intentional effort for that purpose. The following method of aiExing them is prescribed : A hole, 2f inches in diameter, {- inch deep, should be countersunk in the head of the barrel in such position as will bring the spigot at the lower edge of the stamp where the perforations are made. The stamp is to be pasted on this countersunk hole, with the perforated portion over the spigot-hole, with strong paste ; and, if the barrels are to be exposed to the action of the weather, or to be stored in damp places for consider- able periods, should also be secured by four tacks to prevent its peeling ofl": lu renewing the stamp upon a barrel, used the second time, the tacks should be withdrawn and the stamp carefully scraped off to prevent the hole from being filled with the scraps of the former stamp. The stamps, at the time of being affixed, are to be cancelled by writ- ing or imprinting thereon the name of the person, firfn, or corporation by whom such liquor may have been made, or the initial letters of such name and the date of such cancellation. 4 I. R; R. 84. The purpose of countersinking for beer stamps is to protect the brewer by preventing the stamp from becoming detached ; if brewers prefer to affix their stamps without countersinking, there is no legal objection to the practice. 5 I. R. R. 44. It is contrary to the spirit and intention, if not to the letter, of the law for any person other than a collector to sell revenue stamps foT fermented liquors. The restrictions as to the sale and purchase of such stamps are prescribed with the obvious purpose of aiding in the ascertainment of the true product of the articles upon which the stamps are used. 11 I. B. R. 57. Every collector is required to report, on or before the fifteenth day of each month, upon Form 103, the full value of the stamps of each de- nomination on hand on the first day of the month for which the report is made, the full value of the stamps received during the month, the full value of the stamps sold during the month, the full value of the stamps remaining on hand at the close of the month, and the aggregate value of all denominations in each of the above subdivisions in one column, and the value less seven and one-half per centum in another. This report will be required for each month, although no sale may have been made ; every collector is also required to keep a record corre- sponding with the monthly report, and, also, an account with each brewer in his district, showing the denominations and entire value of all stamps sold to him each month, and the value thereof less seven and one-half per centum. EULINGS, BECISIONS, ETC. 119 • Upon the sale of stamps, the collector will enter the amount received upon his jecord of daily collections, and include the same in his certificate of deposit for that day or for any period in which he is required by the Secretary of the Treasury to deposit collections. The amount received from sales will be entered in his abstract of col- lections. Form 22, under the appropriate number, as though collected upon assessor's list. In reporting on Form 51, beer stamps will form a separate title for each month, and should be designated — Beer stamps for month of . Only the amount received for stamps sold should be entered in the first column, as for a list, and also entered in the collection and total columns. Wherever a change of assessor shall occur during any month, the col- lector will specify upon his report the value of the stamps sold during the respective periods of oflice of each, so that each one may receive his proper amount of commissions upon sales. Affixing and Cancellation of Stamps. [Sec. 53. (July 13, isee.) And ie it further enacted, That every brewer shall obtain from the collector of the district in which his brewery or brewery warehouse may be situated, and not otherwise, tmless said collector shall fail to furnish the same upon application to him, the proper stamp or stanaps^ and shall affix upon the spigot-hole or tap (of which there shall be but one) (a) of each and every hogshead, barrel, keg, or other re- ceptacle, in which any fermented liquor shall be contained, when sold or removed from such brewery or warehouse, a stamp denoting the amount of the tax required upon such fermented liquor, in such a jvay that the said stamp or stamps will be de- stroyed upon the withdrawal of the liquor from, such hogshead, barrel, keg, or other vessel, or tipon the introduction of a faucet or other instrument for that purpose; and shall also, at the time of affixing such stamp or stamps as aforesaid, cancel the same by writing or imprinting thereon the name of the person, firm, or corporation by whom such liqitor may have been made, or the iiritial letters thereof, and the date when cancelled. Every brewer who shall refuse or neglect to affix and cancel the stamp or stamps required by law in the manner aforesaid, or who shall affix a false or fraudulent stamp thereto, or know- ingly permit the same to be done, shall be liable to pay a pen- alty of one hundred dollars for each barrel or package on which £uch omission or fraud occurs, and shall be liable to imprison- ment for not more than one year.] (a) This section requires the tax upon fermented liquors to be paid in every case by the use of a single stamp upon each package. 5 I. R. R. 100. Penalty for Fraudulent Kemoval. [Sec. 54-. Ouiy 13, isee.) And he it further enacted, Tliat any brewer, carman, agent for transportation, or other person, who 120 U, S. INTERNAL KEVENTJB LAWS • shall sell, remove, receive, or purchase, or in unj way aid in the sale, removal, receipt, or purchase of any fermented liquor con- tained in any hogshead, barrel, keg, or other vessel from any brewery or brewery warehouse, upon which the stamp required by law shall not have been affixed, or on which a false or fraud- ulent stamp is affixed, with knowledge that it is such, or on which a stamp once cancelled is used a second time ; and any retail dealer or other person, who shall withdraw or aid in the withdrawal of any fermented liquor from any hogshead, barrel, .keg, or other vessel containing the same, without destroying or ^ defacing the stamp affixed upon the same, or shall withdraw or aid in the withdrawal of any fermented liquor from any hogs- head, barrel, keg, or other vessel, upon which the proper stamp shall not have been affixed, or on which a false or fraudulent stamp is affixed, shall be liable to a fine of one hundred dollars, and to imprisonment not more than one year. Every person who shall make, sell, or use any false or counterfeit stamp or die for printing or making stamps which shall be in imitation of or purport to be a lawful stamp or die of the kind before mentioned, or who shall procure the same to be done, shall be imprisoned for not less than one nor more than five years. Provided, That every brewer, who sells fermented liquor at retail at the brewery or other place where the same is made, shall affix and cancel the proper stamp or stamps upon '" the hogsheads, barrels, kegs, or other vessels in which the same is contained, and shall keep an account of the quantity so sold by him, and of the number and size of the hogsheads, barrels, kegs, or other vessels in which the same may have been con- tained, and shall make a report thereof, verified by oath, monthly to tlie assessor, and forward a duplicate of the same to the collector of the district. And provided further, That brewers may remove (a) malt liquors of their own manufacture from their breweries or other places of manufacture to a warehouse or other place of storage occupied by them within the same district, in quantities of not less than six barrels in one vessel without affixing the proper stamp or stamps, but shall affix the same upon such liquor when sold or removed from such warehouse or other place of storage. But when the manufacturer of any ale or porter manufactures the same in one collection district, and owns, oc- cupies, or hires a depot or warehouse for the storage and sale of such ale or porter in another collection district, he may, without affixing the stamps on the casks at the brewery, as herein provided for, remove or transport, or cause to be re- moved or transported, said ale or porter, in quantities not less than one hundred barrels at a time, under a permit from the BULINGS, DECISIONS, ETC. V21 collector of the district wherein said ale or porter is manufac- tured, to said depot or warehouse, but to no other place, under such rules and regulations as the Commissioner of Internal Revenue may prescribe, and thereafter the manufacturer of the ale or porter so removed shall stamp the same when it leaves such depot or warehouse, in the same manner and under the same penalties and liabilities as when stamped at the brewery as herein provided ; and the collector of thre district in which such depot or warehouse is situated shall furnish the manufac- turer with the stamps for stamping the same, as if the said ale or porter had been manufactured in his district. And provided further, That wljere fermented liquor has be- come sour or damaged, so as to be incapable of use as such, brewers may sell the same for manufacturing purposes, and may remove tlie same to places where it may be used for such purposes, in casks, or other vessels, unlike those ordinarily used for fermented liquors, containing respectively not less than one barrel each, and having the nature of their contents marked upon them, without affixing thereon the stamp or stamps re- quired.] (a) Brewers may, witlioiit affixing the required stamp, remove their fermented liquors from their breweries to their places of storage within the same district, in quantities of not less than six barrels in one vessel ; In this case, the stamps are to be affixed when the liquor is sold or re- moved from the places of storage. Persons manufacturing ale or porter in one district, and owning, occupying, or hiring a place for the storage and sale of the same in an- other district, may, witi&out affixing the required stamps, remove their ale or porter in any quantity not less than one hundred baiTels to such place of storage and sale ; the stamps in this case, also, to be affixed when the liquor leaves the warehouse. For this removal of ale or porter a permit (Form 39) must be obtained from the collector of the district wherein such liquor was man- ufactured, on application to that officer, which application is to be made in the following form : " Application for Permit to remove Ale or Porter from Brewery to Warehouse. To the Collector of Internal Revenue : 187 Collection District, State of The undersigned, manufacturer of ale (or porter) at in said District, owning (or occupying or hiring) a depot or warehouse for the storage and sale of the same iji another, viz., the District of the State of to wit, at in the : — of and County of hereby applies for a permit to remove hundred haiTels from his brewery aforesaid to his place of storage and sale afore- said without affixing stamps thereto. The quantity of liquor now at said brewery is as follow^ : (quantity stated here) and the quantity of the same at said warehouse is as follows: (quantity at warehouse stated here). (Signed.) ." 322 U. S. INTERNAL REVENUE LAWS. A duplicate of the permit wUJ be forwarded by the collector to the collector of the district to which the removal is to be made ; and the brewer will promptly notify the last-named collector of the receipt at his store or warehouse of such fermented liquors. If this last notice is not seasonably received, infonnation of this fact will be given to the collector who granted the permit. A record of all permits granted must be kept by the collector granting them. Stamps for use at the place of storage, in these cases, should be ob- tained of the collector of the district within which the warehouse is situated. Sour or damaged fermented liquor, incapable of use as such, may he sold for manufacturing purposes and may be removed to places of use for such purposes without the use of stamps ; but the vessels in which it is so removed are to be unlike those ordinarily used for fermented liquors, and are to contain not less than one barrel each, and the nature of their contents is to be marked thereon. 4 I. R. R. 84. Collectors will compare the monthly returns made by brewers with their own account of the stamps sold to the same brewer's, and will take special care, when applications are made for pennits to remove fermented liquors from one collection district to another, to satisfy themselves that no fraud is intended, and that none is permitted in case permits are granted. The collector wiU take suitable measures, including seizure, if neces- sary, for the prevention of fraud iu the sale and removal of fermented liquor alleged to be sour or damaged. The collector will, from time to time, examine the barrels and other vessels used in the sale of fermented liquors, to see if they are properly marked as required by law. Assessors and assist:; nt assessors will use similar vigilance, and make diligent examination of returns made to them and of the facts involved in such returns ; they will make frequent inspections of breweries, and, when satisfied that the government is deprived of its just amount of tax by concealment of the quantity of liquor brewed and sold, or removed from the brewery, or otherwise, the deficiency should be assessed, and pay- ment required. 4 I. R. R. 85. Marks on Vessels, [Sec. 55. Ouiy 13, isee.) And be it further enacted , That everj^ brewer shall mark or cause to be marked, in such maiiner as shall be prescribed by the Commissioner of Internal Revenue, upon every hogshead, barrel, keg, or other vessel containing the fermented liquor made by him, or before it is sold or re- moved from the brewery, or brewery warehouse, or other place of manufacture, the name of the person, firm, or corporation by whom such liquor was manufactured, and the j)lace where the same shall have been made ; and any person, other than the owner thereof, or his agent, who shall intentionally • re- move or deface such mark therefrom, shall be liable to a pen- alty of fifty dollars for each cask from which the mark is so removed or defaced.] RULINGS, DECISIONS, ETC.* 123 Penalty for Fraudulently Eemoving Stamps. . [Sec. 56. auiy 13, isee.) And he it furtlur enacted, Tlhsui every person, other than the puiwhaser or owner of any fermented liquor, or person acting on his behalf, or as his agent, who shall intentionally remove or deface the stamp affixed upon the hogshead, barrel, keg, or other vessel in which the same may be contained, shall be liable to a fine of fifty dollars for each such vessel from which the stamp is so removed or defaced, and to render compensation to such purchaser or owner for all damages sustained by him therefrom.] Forfeiture for Non-payment Of Tax. [Sec. 57. (juiy 131 isee.) And he it further enacted, That the ownership or possession by any person of any fermented liquor after its sale or removal from brewery or warehouse, or other place where it was made, upon which the tax required shall not have been paid, shall render the same liable to seiziire wherever found, and to forfeiture ; and that the want of the proper stamp or stamps upon any hogshead, barrel, keg, or other vessel in which fermented liquor may be contained after its sale or removal from the brewery where the same was made, or warehouse as aforesaid, shall be notice to all persons that the tax has not been paid thereon, and shall be prima facie evi- dence of the non-payment thereof] Business of Bottling Fermented Lifiuor. [Sec. 58. (Juiy 13, 1866.) And he it further enacted. That every person who shall withdraw any fermented liquor from {a) any hogshead, barrel, keg, or other vessel upon which the proper stamp or stamps shall not have been affixed, for the purpose of bottling the same, or who shall carry on, or attempt to carry on, the business of bottling fermented liquor in any brewery or other place in which fermented liquor is made, or upon any premises having communication with such brewery or any warehouse, shall be liable to a fine of five hundred dollars, and the property used in such bottling or business shall be liable to forfeiture.] {a) The requirements of the law respecting stamps are to be observed in the business of bottling fermentecniquors. The requirements of this section must be complied with. 4 I. R. R. 85. 124 U. S. INTEBNAL REVENUE LAWS. DISTILLED SPIRITS. Amount of Tax. [Sec. 1. (July 20, 1868.) Be it enacted hy the Senate and House of Representatives of the United States of America in Congress fAI, EEVENXJE LAWS. The discharge of this weighing can at the same time empties a measming can holding exactly a quart, and the spirits so emptied are weighed in a three pound weighing can, which is registered on the upper register ; the number of quarts being taken from the lower register, as well as the total weight of the spirits. That portion of the spirits which was reserved in the weighing can passes, after being weighed in the three pounds can, into the large or lower weighing can. The quart and three pounds can ' are alike in all the sizes of meters. In this way the whole weight of the spirits that have passed through the meter, and also the weight of a certain number of representative quarts are ascertained, from which, by appropriate tables, the strength and quantity, and consequently, the number of proof gallons can be found. It is convenient to convert the quarts into gallons, as the tables have been constructed for that unit. When two meters are used, one at the worm and the other at the doubler, the proof gallons returned to the still, as shown by the latter, are to be deducted from the gross amount shown by the former, in order to ascertain the amount on which the t-AX is to be assessed. These calculations all suppose that the liquor has been measured in the meter, at a temperature of 60° Fahrenheit, for which the tables are constructed. If the spirits have passed through the meter at a higher temperature, the proof derived from its indications would be higher than the actual strength ; and if at a lower temperature, it would be lower than the actual strength, in precisely the same degree as if the proof had been taken by a hydrometer. The receiver, in which the small samples are collected, contains a hydrometer and thermometer exposed to iron. By these the average strength of the spirits distilled since the receiver was last emptied can be ascertained by observation ; and their indications should be recorded at each reading of the meter. The proof so obtained should not differ from that derived from the automatic register by more than what is due to the difference between 60° Fahrenheit and the temperature at which the spirits may have passed through the meter. The receiver should be emptied after the verification of each report of the indications of the meter. A difference of 6 or 7 per cent, is reasonable and usual. The com- putation oi the proof gallons is made from the weight, and proof by samples according to Table II. of Manual. The most reliable way to test the meters is to ascertain the weight by actual weighing, and by testing with the hydrometer the strength of a considerable quantity of spirits, both high and low wines, discharged from the meter, and compare the same with the registration on the meter. To this end it would be necessary to disconnect the discharge pipes for high and low wines, and to let the spirits be run into tanks provided for the purpose, and sufficiently large to receive the product of a charge of high and low vrines respectively. Each tank should be mounted on a platform scale, and means provided to empty the tanks into the receivers between the runs of the still. The weighing is preferred to measuring be- cause the weight is not changed by heat, while the volume is. After weighing each tank, its contents should be well stirred, and the proof then taken with a hydrometer ; the actual indication and temperature being set down, together with the weight and the corresponding index read- ings of the meter. Not less than 500 registrations of the weighing can should be used in the test. This will give an accurate and correct test of the rate of the meter. A less accurate test may be made by comparing the result of the meter indications with the quantity and strength of the spirits actually delivered into the receiving cisterns for high wines. In adopting this method, the EUIilKGS, DECISIONS, ETC. 133 -officer making the test must assure himself that there is no communication with the receiving cisterns, except that from the meter, and that the re- ceiving cisterns are empty when he commences the test. He should measure all, and none but the spirits that have passed through the meter, and been delivered during this test. He will record the index readings of the meter at the commencement of the test, and at the close of each run of the still, and draw oflF, measure, and test the proof of the spirits delivered into the receiving cisterns during each run. The measuring may be done by means of sealed gallon or five gallon measures, or by barrels, the capa- city of which has been ascertained by actual measurement with sealed measures, or by weighing the water they will hold, allowing 13 gallons for 100 pounds. The officer should see to the measurement personally, as well as to obtaining the average proof of each run. 9 I. R. E. 114. (5) The register seal lock has been prescribed by the Commissioner. The party desiring it will pay the price, $3.50, to the collector or assessor of his district, who, on the receipt thereof, will remit the same to the col- lector at Buffalo, N. Y., by whom the money will be paid to the manufac- turer, and the lock, with printed instructions, will be shipped to the officer ordering it, the expenses of shipping to be paid by the party. Col- lectors will see that the register seal lock is furnished in all cases where locks are to be applied under their supervision. The storekeeper, or other proper officer, must retain the custody of the keys of the locks in use, never suffering them to go out of his possession, except to the collector or assessor of his district. 10 I. R. R. 113. Definition of Distilled Spirits. [Sec. 4. (July 20, ises.) And he it further enacted. That dis- tilled spirits, spirits, alcohol, and alcoholic spirit, within the true intent and meaning of this act, is that substance known as ethyl alcohol, hydrated oxide of ethyl, or spirit of wine, whicli is commonly produced by the fermentation of grain, starch, molasses, or sugar, including all dilutions and mixtures of this substance _; and the tax shalfattach to this substance as soon as it is in existence as such, whether it be subsequently separated as pure or impure spirit, or be immediately, or at any subse- quent time, transferred into any other substance, either in the process of original production or by any subsequent process ; and no mash, wort, or wash {a) fit for distillation or the pro- duction of spirits or alcohol shall be made or fermented in any building or on any premises other than a distillery duly author- ized according to law ; and no mash, wort, or wash so made and fermented shall be sold or removed from any distillery before being distilled ; and no person other than an authorized distiller shall by distillation, or by any other process, separate the alco- holic spkits from any fermented mash, wort, or wash ; and no person sliall use spirits or alcohol, or any vapor of alcoholic spirits, in manufacturing vinegar or any other article, or in any process of manufacture whatever, unless the spirits or alcohol so used shall have been produced in an authorized distillery, and the tax thereon paid. Any person who shall violate any of the 134 U. S. INTERNAL REVENUE LAWS. provisions of this section shall be fined, for every offence, not less than five hundred dollars nor more than five thousand dollars, and imprisoned for not less tlian six months nor more than two years : Provided, That nothing in this section shall be construed to apply to fermented liquors.] {a) Distillation of spirits from " drop beer" or " slops " may be carried, on subject to the same requirements that apply to distillation from any material other than grapes and apples. 11 I. R. R. 58. Under this section, no article into which alcoholic spirits, or alcoholic vapors enter as an ingredient, can be lawfiiUy manufactured, unless such spirits or alcohol have been produced in an authorized distillery, and have paid the tax. -The largest class of cases affected by it is that of manufac- turers of vinegar by various processes of distillation. 8 I. R. R. 45. U. S. •». Vaporizer, 7 I. R. R. 205 ; U. S. «-. 1 StiU, 6 I. R. R. 330 ; U. S. v. 3 Bbls. 6 I. R. R. 44. The phrase " fit for distillation " is not synonymous' with the phrase " fit for profitable distillation," but means capable of distillation, and of the production of pure or impure alcoholic spirits. The obvious intent of the law is to levy a tax upon all alcohol and alcoholic spirits entering into the composition of any of the known articles of manufacture in the country, and to require that the alcohol thus produced shall be produced in author- ized distilleries. The saving clause applying to fermented liquors is in- tended only to apply to manufacturers of ale, beer, &c. U. S. v. Prussing et al. 12 I. R. R. 34. Registration of Still. [Sec. o. Quiy 2o, i868.) And he it fu7'ther enacted, That every person having in his possession or custody, or under his control, any still or distilling apparatus set up, shall register {a) the same with the assistant assessor of the division in which said still or distilling apparatus shall be, by filing with him duplicate state- ments, in writing, subscribed by such person, setting forth the particular place where such still or distilling apparatus is set up,, the kind of still and its cubic contents, the owner thereof, his place of residence, and the purpose for which said still or distil- ling apparatus has been or is intended to be used ; one of which statements shall be retained and preserved by the assistant as- sessor, and the other transmitted to the assessor of the district. Stills and distilling apparatus now set up shall be so registered within sixty days from the time this act takes effect, and those hereafter set up shall be so registered immediately unpn their being set up. Any still or distilling apparatus not so regis- tered, together with all personal property in the possession, or- custody, or under the control of such person and found in the building, or in any yard or inclosure connected with the building, in which the same shall be set up, shall be- forfeited. And any person having in his possession or custody, * EULIUGS, DECISIONS, ETC. 135 or under his control, any still or distilling apparatus set up which is not so registered, shall pay a penalty of five hundred dollars, and on conviction shall be fined not less than one hun- dred dollars nor more than one thousand dollars, and imprisoned for not less than one month nor more than two years.] (a) The application for registry will be in duplicate on Form 36, one of which will be retained and preserved by the assistant assessor, and the other transmitted by him to the assessor of the district, and a copy thereof immediately sent by the assessor to the Commissioner. All stills and dis- tilling apparatus set up must be registered, whether they are intended to be used or not. Each assessor will enter the registry of all stills in a book to bs kept in his ofBce, and open to inspection, denoting each distillery by its number. Every assessor must furnish the Office of Internal Eevenue with a list of stills or distilling apparatus registered in his district, giving the names of the owners, the location, and whether or not the same are intended to be used, together with the registered number of the distillery. Where the distiller is not the owner of the fee, that fact should also be stated, and whether the consent, or stipulation, or leasebolder's bond lias been filed with him. 9 I. R. R. 147. Notice to be Given by Distillers. [Sec. 6. (Juiy 20, ises.) And he it further enacted, That every person engaged in, or intending to be engaged in, the business of a distiller or rectifier, shall give notice (a) in writing, sub- scribed by hira, to the assessor of the district within which such business is to be carried on, stating his name and place of residence, and if a company or firm, the name and place of residence of each member thereof, the place where said busi- ness is to be carried on, and whether of distilling or rectifying. And if such business be carried on in a city, the residence and place of business sljall be indicated by the name of the street and number of the building. In case of a distiller the notice shall also state the kind of stills, and the cubic contents thereof, the number and kind of boilers, the number of mash tubs and fermenting tubs, and tlie cubic contents of each tub, the number of receiving cisterns, and. the cubic contents of each cistern, together with a particu- lar description of the lot or tract of land on which the distillery is situated, with the size and description of the buildings there- on, and of what material constructed. The notice shall also state the number of hours in which the distiller will ferment each tub of mash or beer, the estimated quantity of distilled spirits which the apparatus is capable of distilling every twenty- four hours, and the names and residence of every person inter- ested or to be interested in the business, and that said distillery and the premises connected therewith are not within six hun- dred feet of any premises authorized to be used for rectifying or refining distilled spirits by any process. 136 U. S. INTERlirAL KEVEKUE LAWS. * In case of -a rectifier, the notice shall state the pi-ecise loca- tion of the premises where such business is to be caiTied on, the name and residence of every person interested or to be in- terested in the business, by what process the applicant intends to rectify, purify, or refine distilled spirits, the kind and cubic contents of any still used or to be used for such purpose, and the estimated quantity of spirits which can be rectified, purified, or refined every twenty-four hours in such establishment, and that said rectifying establishment is not within six hundred feet of the premises of any distillery registered for the distillation of spirits. In case of any change in the location, form, capacity, owner- ship, agency, superin tendency, or in the persons interested in the business of such distillery or rectifying establishment, or in the time of fermenting the mash or beer, notice thereof, in writing, shall be given to the said assessor or to the assistant assessor of the division within twenty-four hours of said change. And any assistant assessor receiving such notice shall imme- diately transmit the same to the assessor of the district. Every notice required by this section shall be in such form and shall contain such additional particulars as the Commissioner of In- ternal Jlevenue may from time to time prescribe. Any person failing or refusing to give such notice shall pay a penalty of one thousand dollars, and on conviction shall be fined not less than one hundred dollars nor more than two thousand dollars ; and any person giving a false or fraudulent notice shall, on conviction, in addition to such penalty or fine, be imprisoned not less than six months nor more than two years.] (a) Every person engaged in the business of a_ distiller, or intending to engage therein, must give notice on Form 37, over his own signature, to the assessor of the district in which such business is, or is to be, carried on, who will furnish a copy thereof to the collector. Like notice of any change in the location, form, capacity, ownership, agency, or superintend- ence ; or in the persons interested in the business of said distillery, or in the time of fermenting the mash or beer, is to be given within twenty-four hours of such change, and a copy of such notice will be immediately transmitted to the Commissioner. The notice (Form 37) should be prepared in strict conformity to sec- tions 6 and 15 of the act July 30, 1868. The description of the distillery premises should be limited to the lot or parcel of land actually used in connection with the distillery, and for that purpose alone, and should be as particular as in a deed. The size and description of each building situat- ed thereon, and of what material constructed, should be given ; and the building used or intended to be used as a distillery warehouse, should be indicated, with an additional statement that no door, window, or other opening is in the walls of such warehouse leading into the distillery or any other room or building ; and that said warehouse is on and constitutes a part of said distillery premises. The precise nature of the title to the distillery building, apparatus, and premises, should be stated ; and where the written consent of the owner of the fee, or holder of liens or bonds s ' BULINGS, DECISIONS, ETC. 137 substituted in lieu of unencumbered fee simple, that fact sbould appear. "Tlie distiller must name in his notice (Form S7) the number of hours in , ■which he will ferment each tub or mash of beer, and will be required to operate his distillery upon this fermenting period; but assessments will be made against him on the basis of the sui-vey, a copy of the report of which was last delivered to him. 11 I. R. E. 131. Each person having a still, and intending to use the same for the dis- tillation of brandy from apples, peaches, or grapes, must, before commenc- ing distillation, give notice, on Form 37^, to the assessor of his district, •direct or through the assistant assessor of his division, of his intention to distil, stating in such notice his name and place of residence, and, if a company or firm, the name and place of residence of each member thereof; the place where said business is to be carried on ; the number and kind of stills ; the total capacity^f each in gallons ; the manner in which the same is to be boiled, whether by steam or furnace heat ; the kind of fruit proposed to be used ; the building or place on the preijaises where the distillery is situated in which he will deposit and keep the brandy to be distilled by him until the tax is paid thereon and the tax-paid stamps attached thereto ; and that such still or stills are not within six hundred feet of any premises authorized to be used for'rectifying or refining distil- led spirits by any process. 13 I. R. E. 1. Bonds of Distillers. [Sec. 7. Ouiy 20, isss.) And he it further enacted, That every dis- tiller shall, on filing his notice of intention to continue or com- mence business with the assessor before proceeding with such business, after the passage of this act and on the first day of May of each succeeding year, make and execute a bond {a) in form prescribed by the Commissioner of Internal Eevenue, with at least two sureties, to be approved by the assessor of the district. The penal sum of said bond shall not be less than •double the amount of tax on the spirits that can be distilled in his distillery diu'in^ a period of fifteen^ days; but in no case shall such bond be lor a less sum than 'five thousand dollars. The condition of the bond shall be that the principal shall faithfully comply with all the provisions of law in relation to the duties and business of distillers, and will pay all penalties incurred or fines imposed on him for violation of any of the said provisions; that he will not suffer the lot or tract of land on which the distillery stands, or any part thereof, or any of the distilling apparatus, to be encumbered by mortgage, judgment, or other lien, during the time in which he shall carry on said business. The assessor may refuse to approve said bond, when, in his judgment, the situation of the distillery is such as would enable the distiller to defraud the United States ; and in case of such refusal, the distiller may appeal to the Commissioner of In- ternal Eevenue, whose decision in the matter shall be final. A new bond ?aay be required in case of the death, insolvency, or removal of either of the sureties, and in any other contingency, iit the discretion of the assessor or Commissioner of Internal 138 U. S. INTEENAL EEVEKUE LAWS. Revenue. Any person failing or refusing to give the bond * hereinbefore required, , or to renew the same, or giving any false, forged, or fraudulent bond, shall forfeit the distillery, dis- tilling apparatus, and all real estate and premises connected therewith, and on conviction shall be fined not less than five hundred dollars nor more than five thousand dollars, and im- prisoned not less than six months nor more than two years.] (a) Every distiller, on filing Ms notice with the assessor, must, before continuing or commencing business, on the first day of May in each suc- ceeding year, make and execute a bond on Form 80, with at least two sureties to be approved by the assessor of the district ; assessors will give special attention to the instructions printed thereon, and will require the sureties to justify, on Form 33, in double the amount of the penal sum of the bond. No distiller's bond should be approved until his distillery warehouse has been approved and established, and a storekeeper assigned thereto by the Commissioner, nor until all the requirements of law and the regulations in relation to distilleries have been complied with. The bonds of distillers, when approved by assessors, will be filed with the collector of the district ; assessors will also forward to the Office of Internal Revenue information of the date when the bond was approved, if ap- proved, and the time when the distiller commenced work. 9 I. R. K. 147. Distillers should understand that with the last day of April their rights as distillers cease ; and those intending then to discontinue distil- ling must so arrange their business as to terminate all work at their distillery on the last day of April, and not have beer on hand to be distilled in the first days of May ; in such cases, the parties must be treated as illicit distilldrs. Distillers intending to discontinue business, should, on the thirtieth day of April, register their stills as not for use. A dis- tiller desiring to continue his business, can only do so legally by giving his notice (Form 27), and executing his bond on the first 'day of May. Such distiller should have his bond complete and ready for execution with his notice (Form 37) prepared and presented to the assessor a suf- ficient length of time in advance of the first day of May, to enable him to make the necessary investigations by that day, so that he may, on the first day of May, when the bond is executed, approve or disapprove such bond. When the bond is approved on the first day of May, the distiller may continue his work at his distillery ; but where the bond is disapproved, the mere fact of having presented it confers no rights upon the distiller, but he will be regarded as having failed to give bond as required, and must cease all work at his distillery. The assessor, in approving the bond, should endorse his approval thereon, giving the date of such ap- proval, and sign hisnamethereto, officially. Where bonds are not approved vmtil after the first day of May, or where presented for approval on the first day of May by those commencing business, the approval should not be made until the assessor is advised, by the Office of Internal Revenue, that the (Form 27) report of survey, plan, and warehouse are approved, and storekeeper assigned; but in the case of those offering bond for approval on the fiftt day of May, with a view of continuing business, the approval will be made without awaiting advices from the Office of In- ternal Revenue, as, in such cases, the papers alluded to must have already had official approval. 11 I. R. R. 121. The bonds should not be surrendered at the close of the special tax year, nor at any other time, but should be retained as security for any liabilities which may be discovered to have been incurred during the period covered by it. 8 I. R. R. 171. RULING S, DEOISIOKS, ETC. 139 Bonds of a distiller of brandy from apples, etc., so given, expire on the last day of April of each year, and parties must renew their bonds before continuing or again engaging in distillation after that date. 13 I. R. E. 1. A distiller, who has prepared and delivered a bond to the assessor, and been notified of its approval, will not forfeit his property because he has omitted to hand in a plan of his distillery, and otherwise comply with the provisions of the ninth section. "Whether the bond has been approved in point of fact is immaterial. Whenever the Commissioner did prescribe a form of bond, then it was the duty of the distiller to give it in that form ; and until he did so prescribe a form, it was sufficient if the distiller gave a bond in the form and with the condition contained in the stat- VLte. U. S. V. 33 Bbls. 9 I E. E. 67. A bond voluntarily given to the United States to secure the performance of any lawful act, or the discharge of any public, official, or private duty, is valid and binding, if the United States, in its political and corporate cjipacity, has a legal pecuniary interest in the performance of the condi- tion of such bond ; although such bond is not required by any act of Congress, The United States, the dificrent States of the Union, and all municipal corporations may legally take a bond with sureties for the faith- ful performance, by an individual, of all lawful contracts made with them, and in the performance of which they have a direct pecuniary corporate interest. In this respect they may take the same measures for their security as might be taken by an individual for his own security in similar cases ; and whenever any tax is legally imposed by the United States, it may take security by bond for the payment of such tax, or for the proper accounting therefor by the officer who collects it, in the absence of any Congressional legislation upon the subject of such security. U. S. «. GarHnghouse et al. 11 I. E. E. 11. The capacity of a party to make a contract is governed by the lex loci contractus, or the law of the place where the contract is made. When the laws of a State authorize a femme covert to engage in and carry on the business of a distiller upon her own account and for her sdfe benefit, separate from the business of her husband, and to make with an individual any contract for the procurement or use of a warehouse, to enable her to carry on such business, she may execute a bond with sureties as required by this act. By requiring such bond of a married woman, who might carry on the business of a distiller for her sole and separate benefit, Congress incidentally and necessarUly conferred upon her the legal capacity to bind herself by such bond ; for, otherwise, the execution of the bond would be a nugatory act, and the object and purpose of Congress in requiring such bond would be defeated. U. S. i). Garlinghouse et al. 11 I. E. E. 11. The courts of the United States are governed by the rules of the com- mon law, because the common law is in force in the State or Territory where the cause of action arose or is to be enforced, and not because the common law has been adopted by the United States, or has, under the laws of the United States, any bindiBg force except as being the law of 340 V. S. IKTEEKAL KEVBmJE LAWS. some State, Territory, or district. U. S. v. G-arlingliouse et al. 11 I; R. R. 11. A party who resorts to the practice of hiring sureties upon his bond, is bound to know that the sureties are good. He may pay money to an- other to become his surety, but it must be under such circumstances as to show an honest effort to procure good ones. TJ. S. «. O'Brien et al. 7 I. R. R. 63. This act is a reyenue law within the meaning of the act March 26, 1804, 2 Stat. 290, and the limitation for the prosecution, trial, and punish- ment of persons guilty of offences'imder it is extended to five years. TJ. S. ®. Wright et al. 11 I. R. R. 35 ; s. c. 3 A. L. T. (0. R.) 17. The lot or tract of land of which a description is to be given, or which is required to be unencumbered, or for the value of which a bond is to be given, and which is not allowed to be encumbered, is the real estate and premises connected with the distillery ; that is, used in connection there- with to facilitate the carrying on of the business, and directly or indirectly conductive or contributoi-y to that end. It will include all buildings, yards, inclosures, offices, stables, wine-cellars, &c., used in the business; but it ought not to include dwelling houses, pasture or sowing lots, &c., or village lots and leases, which, though owned by the distiller, and not in any way employed in his business as a distiller, which may be rented or occupied by other persons, and which, so far as the manufacture of dis- tilled spirits is concerned, might as well have belonged to any one else. U. S. V. Piece of Land, 11 I. R. R. 126. Approval of Bonds— Priority of Lien. [Sec. 8. (juiy 20, isas.) And he it further enacted, That no bond of a distiller shall be approved unless he is the owner in fee, un- encumbered by any mortgage, judgment, or other lien, of the lot or tract of land on which the distillery is situated, or un- less he files with the assessor, in connection with his notice, the written consent («) of the owner of the fee, and of any mort- gagee, judgment creditor, or other person having a lien thereon, dul}' acknowledged, that the premises may be used for the pur- pose of distilling spirits, subject to the provisions of law, and ex- pressly stipulating that the lien of the United States for taxes and penalties shall have priority of such mortgage, judgment, or other encumbrance, and that in case of the forfeiture of the distillery premises, or any part thereof, the title of the same shall vest in the United States, discharged from any such mort- gage, judgment, or other encumbrance. In any case where the owner of a distillery or distilling ap- paratus, erected prior to the passage of this act, has an estate for a term of years only, in the lot or tract of land on which the distillery is situated, the lease or other evidence of title to' which shall have been duly recorded prior to the passage of KUIvINGS, DECISIONS, ETC. 141 this act, the value of such lot or tract of land, together with the building and distilling apparatus, sliall be appraised in the man- ner to be prescribed by the Commissioner of Internal Eevenue ; and the assessor is hereby authorized to accept, in lieu of the said written consent of the owner of the fee, the bond of said distiller with not less than two sureties, who shall be residents of the collection district or county, or an adjoining county in the same State, in which the distillery is situated, and shall be the owners of unencumbered real estate in said district or county, or adjoining county, equal to such appraised value. The penal sum of said bond shall be equal to the appraised value of said lot or tract of land, together with the buildings and distilling apparatus, and such bond shall be conditioned that in case the distillery, distilling apparatus, or any part thereof, shall, by final judgment, be forfeited for the violation of any of the provisions of law, the obligors will pay the amount stated in said bond. Said bond shall be in such form as the Commissioner of Internal Eevenue shall prescribe.] (a) The conseat of the owner of the- fee, or mortgagee, judgment creditor, or other person having a lien on the premises, must be duly ac- knowledged and executed with all the formalities required in conveyances of real estate, and must be duly recorded before the same is ffled with the assessor. As the question as to the titlp to the real estate is material, the assessor should require of the distiller a properly certified statement, or search of the title to such to be exhibited to him, and full evidence as to what, if any, liens or encumbrances exist thereon. Where the distiller's estate is for a term of years only, under a lease or other evidence of title recorded before the passage of this act, the distil- lery, or distilling apparatus, having also been erected prior to that date, the distiller may, in lieu of the consent and stipulation aforesaid, give an additional bond, on Form 3, with not less than two sureties, residents of the district or county, or adjoining county, and owners of imencumbered real estate in said district or county, equal to the penal sum of the bond. In such case the assessor will cause the value of the lot, or tract of land, together with the buildings and distilling apparatus, to be appraised by two or more competent persons to be designated by him, and the said ap- praisal may be increased by the assessor, if, in his judgment, the same is too low, and the penal sum 'of said bond must be equal to such appraised value. This is in addition to the distiller's bond, required by section 7, and a substitute for the ownership in fee of the distillery premises ; and if the same sureties should be offered upon both bonds, the assessor will see that they are the owners of unencumbered real estate, as aforesaid, sufficient in value to cover their liability upon both bonds. 9 I. R. R. 147. The written consent required 6f the owner of the fee is one which has been given since the passage of the act, and should be filed with the asses- sor. 8 I. R. R. 73. The filing of an original lease, or copies thereof, in the offices of the collector and assessor, is not such a record thereof as is contemplated by this section. If there is no public record for leases, or if for any other reason the lease has not been recorded, the general rule must be enforced. 8 I. R. R. 171. 142 U. S. DfTEKNAL EEVEHTJE LAWS. If a distillery stands upon premises so situated that the portion where the distillery is located fronts, upon the public highway, or is directly accessible from it, and is so inclosed and set apart from the rest of the premises as to be readily sold at public sale as separate property, such portion may be regarded as the distillery premises. 8 I. R. R. 173. When Consent of Owner of Fee Not Required. [Sec. 1. (April lo, i86g.) That section eight be amended so that in case of a distiller or distilling apparatus erected prior to the twentieth of July, eighteen hundred and sixty-eight, on a tract or lot of land held under a lease or other evidence of title less than fee simple, which was not required by the laws of the State to be recorded in order to be valid at the time of its exe- cution, or in any case where the title was then and has con- tinued to be in litigation, or where the owner is possessed of the fee but encumbered with a mortgage executed and duly re- corded prior to the said twentieth of July, eighteen hundred and sixty-eight, and not due, or where the fee is held by a femme covert, minor, person of unsound mind, or other person incapable of giving consent as required by said act, a bond may be taken at the discretion of the Commissioner, as provided for inftaid section, for a distillery erected on land the lease or other evidence of title to which was duly recorded prior to the pas- sage of this act : Provided, That nothing herein contained shall be so construed as to apply to any distillery or distilling apparatus not erected prior to the twentieth of July, eighteen hundred and sixty-eight.] Any person desiring to avail himself of these provisions must make ap- plication to the Commissioner, showing, in case of a lease, that there was a valid subsisting lease on or before July 30, 1868, under which he holds, and that the same was not requited to be recorded by, the laws of the State. If the title is in litigation, in what court the proceedings are pending ; the parties thereto, and the nature of their claims ; and that such litigation was pending July 80, 1868; if a mortgage, the date and amount of the same ; when recorded ; by whom held, and when the same is due ; and in case of incapacity to consent, the nature of said incapacity. In all cases, a full and clear statement of the title to the estate should be given; and such application should have endorsed thereon the certificate of the assessor of the district that he has personally investigated the case, and finds that the statements made are correct. 9 I. R. R. 148. Where the title to the estate upon which an authorized distillery is located is changed by a sale, judicial or otherwise, or there is any change of ownership in the premises or distilling apparatus, or where the lot or tract of land on which the distillery stands, or any part thereof, or any of the distilling apparatus, sulisequent to the approval of the bond, becomes subject to, or encumbered by, any mortgage, judgment, or other lien ; or any person becomes interested in the business other than those stated on Form 27, it is no longer aD authorized distillery. In such case, there must be a.ncw notice on Form 27, and all the steps taken the same as in the case of a new distillery, except that the distiller may adopt or assent in writing to the correctness of the plan and survey on file, and the proper correction should be made upon the registry of the still. 9 I. R. R. 158. RULUfGS, DECISIONS, ETC. 143 Plan of Distillery. [Sec. 9. (juiy 20,1863.) And ie it further enacted, That every distiller and person intending to engage in the business of a dis- tiller shall, previous to the approval of his bond, cause to be made, under the direction of the assessor of the district, an accn- rate plan {a) and description, in triplicate, of the distillery and distilling apparatus, distinctly showing the location of every still, boiler, doubler, worm tub, and receiving cistern, the course and construction of all fixed pipes used or to be used in the dis- tillery, and of every branch thereof, and of every cock or joint thereof, and of every valve therein, together with every place, vessel, tub, or utensil from and to which any such pipe shall lead, or with which it commanicates. Such plan and descrip- tion shall also show the number and location and cubic contents of every still, mash tub, and fermenting tub, together with the cubic contents of every receiving cistern, and the color of each fixed pipe, as required in this act. One copy of said plan and description shall be kept displayed in some conspicuous place in the distillery ; two copies shall be furnished to the assessor of the district, one of which shall be kept by him and the other transmitted to the Commissioner of Internal Revenue. The accuracy of every such plan and description shall be verified by the assessor, the draughtsman, and the distiller ; and no altera- tion shall be made in such distillery without the consent, in writing, of the assessor, which alteration shall be shown on the original or by a supplemental plan and description, and a refer- ence thereto noted on the original, as the assessor may direct ; and any supplemental plan and description shall be executed and preserved in the same manner as the original.] (a) Previous to the approval of his bond, every person intending to engage in the business of a distiller, must, under the direction of the asses- sor, cause to be made an accurate plan and description in triplicate of the distillery and distilling apparatus. Such plan must be on good paper or tracing cloth, fifteen by twenty inches in size, with a margin of at least one inch on each side of the drawing. And where the distiller or distil- ling apparatus occupies more than one floor or story, each floor or story should be represented on a separate sheet. The assessor must, by personal examination, test the*accuracy of such plan when made, and none but competent draughtsmen should be employed to make it. The capacity of each tub or vessel should be marked on the plan in gallons. After such plan is made, no alterations can be made in such distillery or distilling apparatus without the written consent of the assessor, and such alteration must be shown by a supplemental plan and description, which shoul^ also be made in triplicate like the original. One of said plans is tb be kept displayed in some conspicuous place in the distil- lery, one kept by the assessor, and one transmitted by him to the Commis- sioner, rolled and not folded ; and any supplemental plan will be disposed' of in the same way. The accuracy of evei^y plan must be verified by the assessor, the draughtsman, and the distiller ; and the assessor will note a 144 tr. S. INTERNAL REVENUE LAWS, reference to such supplemental plan on the copy in his possession, and on that of the distiller, and send a copy of such memorandum with such sup- plemental plan to the Commissioner. In case a distiller desires to increase his capacity after his plans are furnished, the survey made, and his bond approved, he must give notice under section 6 ; and, if such change necessitates any alteration in his dis- tillery, as the introduction of additional mash or fermenting tubs, a sup- plemental plan must be furnished, showing the alterations. If such alter- ations are confined to one floor, a supplemental plan of that floor properly certifled will be received. 9 I. R. R. 148. Survey of Distilleries. [Sec. 10. (July 2o, i868.) And ie it further enacted, That imme- diately after the passage of this act every assessor shall proceed, at the expense of the united States, vsrith the aid of some com- petent and skillful person, to be designated by the Commissioner of Internal Revenue, to make survey {a) of each distillery regis- tered or intended to be registered for the production of spirits in his district, to estimate and determine its true producing capacity, and in like manner shall estimate and determine the capacity of any such distillery as may hereafter be so registered in said district, a written report of which shall be made in triplicate, signed by the assessor and the person aiding in mak- ing the same, one copy of which shall be furnished to the distil- ler, one retained by the assessor, and the other immediately trans- mitted to the Commissioner of Internal Revenue. IftheCom- missionerof Internal Revenue shall at any time be satisfied that such report of the capacity of a distillery is in any respect incor- rect or needs revision, he shall direct the assessor to make in like manner another survey of said distillery ; the report of said survey shall be executed in triplicate and deposited as herein- before provided.] {a) The object of this survey is to determine the true producing capa- city of each distillery, i. e., the quantity of spirits which may be produced in sucli distillery in twenty-four hours. In addition to this, the report should state the aggregate mashing and fermenting capacity in bushels or gallons, i. e., the nvunber of bushels of grain or gallons of molasses that may be mashed and fermented in twenty-four hours. As this is one of the tests by which the amount of tax due is to be determined!!, it should be carefully and correctly made. The report should be immediately forwarded to the Commissioner, who, if he shall at any time be satisfied that it is incorrect or needs revision, may direct a ne\| survey to be made. 9 I. R. R. 148. The assessor, and person designated to aid him, are to estimate the true producing capacity of each distillery, and make report thereof in writing. In performing this duty, they will assume that the distiller will put Ms machinery and apparatus in good working order, ufe good mate- rial, employ competent and skillful workmen, and so manage his business as to produce the most favorable results. And the question to be deter- mined is, what, under such circumstances, is the number of bushels of grain, or gallons, that can be mashed and fermented in twenty-four hours, and the quantity of spirits that can be produced in the same time. RULINGS, DECISIONS, ETC. 145 The true producing capacity of a distillery is not limited to what the distiller may produce by following a particular course which he has marked out, but what may be produced under favorable circumstances. The true producing capacity of a distillery is not the amount so pro- posed to be produced, but the amount which can be produced, using all the machinery and apparatus under competent and skillful management, taking as,a basis for the calculation such premises as will produce the best practical results. In order to estimate and determine the true producing capacity of a distillery, it is necessary to ascertain the capacity of the mash and fer- menting tubs. This should be done by actual and careful measurement, and the report must show the greatest diameter, least diameter, and depth of each tub ; its form, whether round, oval, or square ; its full capa- city in gallons ; the number of dry inches allowed for working or fer- menting ; its working capacity — the fermenting tubs in gallons, the mash tubs in bushels — estimating not less than one bushel to twenty-five gallons of mash. The fermenting capacity, however, may limit the mashing capacity, be- cause the distiller cannot mash more than he has capacity to ferment. If it should be found that a distiller has an excess of mash tubs, as compared with his fermenters, due regard will be had to this fact, as mash tubs may be used as fermenters. Having ascertained the diameter and depth of each tub, the cubical contents will be found by the following rule : multiply the square of the mean diameter in inches, by the decimal, .0034, and the product will be the number of gallons in one inch of depth ; multiply this product by the number of inches of depth in the tub, and the product will be the cubical contents or capacity of the tub in gallons. Having found the aggregate capacity of the fermenters, the number of bushels which it will take to fill such fermenters is found by dividing that quantity by the number of gallons of mash made from a bushel of grain. Under the provisions of section 20, this divisor cannot exceed forty-five, except in case of a distillery having' a producing capacity of less than one hundi'ed gallons in twenty-four hours, and in which grain or meal is mashed by hand, and without the use of steam, in which case it cannot ex- ceed sixty. These are the maximum limits, and if in either case the dis- tiller makes a thicker mash, using less water to the bushel, the divisor will be proportionately less. Having found the number of bushels which are required to fill the fer- menters, the assessor and person designated to aid him will determine what, under all the circumstances, is a reasonable period to be allowed for fermenting, and in so doing they are not bound by the period stated in the distiller's notice, but are to take such period as will, under ordinary circumstances and with good management, produce the best results. From the best information, it is believed that a fermenting period of sixty hours is as long a period as can be used consistently with good management or a profitable conduct of the business, and where a greater period than this is assumed, it must be accompanied with such a statement of the circum- stances as will show it to be justified as an exceptional case. Having thus determined the fermenting period, the twenty-four hours during which the fermenting tubs are to remain empty are to be added, and with this sum divide the number of bushels which it requires to fill all the fermenters, and the result will show the number of bushels that can be mashed in one hour or in one day, according as the divisor is in hours or days, and, if in hours, multiply by twenty-four to find the quantity for one day of twenty-four hours. Having thus found the number of bushels which can be mashed and 10 146 U. S. INTEBKAL KBVENUB LAWS. fermented in twenty-four hours, the next point to be determined is, what quantity of spirits can, under all the circumstances, be produced from a bushel of grain — that is, what quantity of spirits can a practical distiller, with good management, produce from a bushel of good grain ; and, while no fixed rule can be laid down upon the subject, it may be suggested that in ordinary distilleries this varies from three to four gallnns, and in some cases over four gallons, or an average of three and a-half gallons to the bushel. It may be safely assumed that it would require a strong case to justify an estimate of less than tl\ree gallons, and in such case the reasons for such an allowance must be fully reported to the Commissioner \ and in all cases where the estimate is below the average (three and a-half gallons), an explanation will be required. Having determined this product, multi- ply the number of bushels that can be fermented in twenty-four hours by it, and the result will be the quantity of spirits that can be produced in twenty-four hours. The capacity of a molasses distillery is estimated upon the same prin- ciple. Having found the working fermenting capacity of the fermenters in gallons, as above stated, divide this by the number of gallons of mash which the distiller makes from a gallon of molasses, and it will give the number of gallons of molasses required to fill the fermenters. Take the fermenting period plus the twenty-four "hours, and divide the amount found as above, and it vrill give the quantity which can be fermented in twenty-four hqurs. The quantity of spirit which can be produced from a gallon of molasses varies, of course, with the completeness of the apparatus and the quality of the material, from 80 to 95 per cent., this probably being a fair average ; and in no case should a leas allowance than this average be made without first submitting a full report of the reasons therefor to the Commissioner. In case any question arises as to the correctness of the survey, the assessor will forward a draft of his report to the Commissioner before it is signed, in order that such questions may be determined. In estimating the number of dry inches to be allowed for fermentation, the assessor and person designated to aid him must, of course, be governed in a great measure by the depth of the fermenting tubs. From the best information received, it is believed that a fair allowance will be from three to seven dry inches for com and any mixture of com and rye not ex- ceeding one-half rye to one-half corn, and from seven to twelve dry inches for rye and any mixture of rye exceedmg one-half. While it is per- haps natural that the distiller should claim the maximum allowance as most advantageous to him, it is incumbent upon the ofiicers making the survey to make such allowance only as is fair and equitable, having regard to the interests of the government as well as of the distiller. Should the allowance in any district in all cases equal the maximum allowance, or in most cases exceed the average between the two extremes given, the survey should be accompanied by some explanations to rebut the inference that might be drawn from such action. Uhder the provisions of section 6 the distiller is required to state the fermenting period which he proposes to use, and the quantity of spirits w hich he will produce. This may or may not be the true producing capa- city, of his distillery, but having so stated it, he cannot change his ferment- ing period without notice to the assessor ; if he does he renders himself liable to heavy penalties. This is his own statement, entirely distinct from and independent of the true producing capacity as estimated and determined under this section. It is to be made and filed before any action is taken under this section. If, after his true producing capacity is deter- mined, he chooses to adopt a fermenting period corresponding to that as- sumed by the assessor and person designated to aid him, he may do so by EUIilNGS, DECISIONS, ETC. 147 giving the proper notice. If he does it without such notice, he subjects himself to heavy penalties. 10 I. R. R. 84. The true spirit-producing capacity of a grain distillery is mainly deter- mined by its fermenting capacity ; but as this is sometimes affected by the modes of mashing and distilling, these are, therefore, to be considered in such cases. The surveyor having ascertained by measurement the cubic contents of the fermenting tubs, finds it necessary to determiae: 1st. The number of dry inches to be allowed each tub for fermentation. 3d. The period necessary to enable the distiller to ferment each tub of mash. 3d. The number of gallons of spirits that jCan be produced from a bushel of grain. ■ These are questions coming within the discretion and judgment of the assessor and his skillful assistant, with which the Office of Internal Rev- enue has no disposition to interfere. But it has been thought proper for the guidance of the surveyor to prescribe certain rules on these three points. Surveyors are, therefore, to be governed by the following rules in fixing the capacity of a distillery, except where they find that they do not correctly determine its capacity. If the capacity is difibrent from that indicated by these rules, they are to report it according to the fact, and, if smaller, assigning in the report the reasons therefor; and if such reasons are not satisfactory to the Com- missioner, he will order a new survey to be made. It is believed that no reasons exist to justify the fixing of a less capacity than that arrived at by these rules, except in one case hereinafter mentioned. The rule for deter- mining the amount of dry inches is as follows : For fermenting tubs five feet in depth nnd under, an allowance of seven inches for rye and three inches for com. For each foot in excess of five feet, one-half inch for rye aid four-tenths of an inch for corn. Forty- eight hours is prescribed as the maximum period to be allowed for fer- mentation in sweet mash distilleries. The oaly exception to this rule that is thought to be justified by suffi- ■ cient reasons is where the mashing is done by hand, where hot water is the only heating agent, and tha distillation isinSopparby furnace heat. It is believed that with this imperfect mode of stirring and regulating the tem- perature, such a perfectly fermsnted beer c innot be uniformly produced as is necessary for distillation in coppar, with furnace heat, to prevent occa- sional burning of the still. In such cases seventy-two hours will be allowed for fermentation. Tdis is the only instance in which the mode of distillation is consid- ered as affecting the period to hz allowed for fermentation. Seventy-two liours is the maximum period to bj allowed for fermentation in sour mash distilleries. This is based on the fact that where opei beer, or beer in process of fermentation, or both, are the only fermenting agents used fer- mentation is not so rapid as where yeast is use i : and, therefore, this rule applies to all sour mash distilleries, whatever the mode of heating stir- ring, and distilling may be. The period is estimated from the time of yeasting or breaking up. An exception is made to this rule in the case of hand mash distilleries where the mashing and distilling is done in the same tubs. In such cases the ' time will be estimated from the time of the first scalding of the xn^al. All the tubs will be embraced in the estimate of the capacity, and ninety-six hours will be allowed for fermentation, as in each case it necessarily in- cludes the twenty-four hours used for mashing. Where the distiller prefers, he may set aside certain of his tubs to be used exclusively for mashing, marking them distinctly as such ; and in such cases the computation will b'e made on the tubs used for fermenting, and the period be fixed from the 148 V. S. XNTERIfAL REVENUE LAWS. time of yeasting or breaking up, instead of from the time of commencing- the mashing. In estimating the yield per bushel the minimum prescribed is three and a-half gallons where the distillation is by steam, without the use of the coil ; where the coO is used, three gallons ; and where the distillation is in copper, by furnace heat, two and a-half gallons. In many instances it is found that the actual production exceeds these amounts. Where that is the case, the survey should be based upon the amount which it is found can be actually produced. The amount of grain that can be used in a distillery is ascertained under the rule prescribed in section 30, act of July 20, 1868, and in the- amendment thereto, section 1, act of April 10, 1869. Where, however, it is found that the distiller uses a thicker mash, the estimate -will be made according to the fact ; but when a thinner mash is used, the estimate -mil be according to the statutory rule. The capacity to be determined is not the .capacity to make this or that particular kind or brand of distilled spirits, but the capacity to make dis- tilled spirits, as described in section 4, act July 20, 1868. Distillers sometimes insist that they cannot produce the particular kind or brand of spirits which they are in the habit of manufacturing without using a longer fermenting period than is allowed by these rules. Section 6 of said act affords the distiller ample opportunity to take any period he may desire by specifying such period in his Form 37 ; but as taxation is based upon capacity to produce spirits, as described in section 4, and not to produce this or that particular brand; and as the spirit de- scribed in section 4 is successfully produced within the period named, surveys are, therefore, made accordingly, and the taxation is thereby ren- dered uniform. What is above stated is not fully applicable to the three other classes of distillation in use in the United States ; to wit, gin, rum, and fruit brandy distilled from apples, peaches,- or grapes exclusively. The gin and rum distilleries, being few in niynber, have been made the subject of special instruction to officers in whose districts they are located. The attention of assessors is especially directed to the importance of correctly reporting their surveys. The reports must be signed by the assessor of the district and his designated assistant. An assistant assess- or can only sign when he is acting assessor, and must then sign aa such. The assessor, in transmitting a copy of the report of survey to the Office of Internal Revenue, should accompany it with his certificate, showing the day upon which he delivered the copy thereof to the distiller. This delivery must be actual, and the assessor must be able to verify the fact of such delivery, and the particular day thereof The distiller is assessed upon such survey from and after the day of the delivery of the copy to him ; and the day of the delivery must, therefore, be known. When the report of the capacity of any distiller is in any respect in- g correct, or needs revision, the Commissioner will direct the assessor to make another survey. It will be observed that the Commissioner alone has autSiority to order a resurvey for the correction of errors. This -will be done in every case where, on an examination of the reports in the 0|Bce of Internal Revenue, they are found to be, in any respect, incorrect, or needing revision, or where so shown to be on the application of the distil- ler for a resurvey. The corrections will, therefore, always be made on the order of t]ie Commissioner for a resurvey ; but when the correetions do not render a remeasurement necessary, it need not be done. KUIilKGS, DECISIONS, ETC. 149 The copy of the report of resurvey will be delivered and certified the •same as in other cases. Assessment ■will always be made on the survey a copy of which was last delivered to the distiller. Assessors sometimes deem it necessary to make a resurvey on the re- duction or increase of capacity. By referring to regulations it will be seen that the resurvey is not necessary either on the reduction or increase of capacity, except it be where, by the increase, new tubs are added ; in 'such cases the assessor should call his designated assistant to make the required survey. 11 I. E. K. 139. Fruit distilleries having no ascertainable mashing or fermenting capacity, the true producing capacity thereof is determined solely on the capacity for distillation. This is arrived at by determining, first, the capacity in gallons of each still, making proper deduction for boiling space ; second, the number of boilings of each still that can be effected in tyenty-four hours, of each condition of the material to be used ; and, third, the spirit- producing capacity of the material in each condition. The capacity in gallons of each still may be ascertained either by arithmetical calculation, or by filling the same and measuring the contents. "When done by filling and measuring the contents, the columns in Form 99 for diameters may be left blank, and a note entered on the face of the report showing that the capacity was ascertained by measurement of contents. Twenty per cent, must be deducted from the total capacity of each still as an allowance of space for boiling. For instance, a still hold- ing one hundred gallons will boil eighty gallons. The number of boilings that can be effected of each material in twen- ty-four hours is to be determined in view of the appliances in use for that purpose. When steam is used, a greater number of boilings can be ordi- narily effected than where furnace heat is used ; and the number of boilings that can be effected with furnace heat depends on the shape of the still and the amount of surface exposed to the action of the heat, and the manner in which the still is set. It is believed that ordinarily seven boilings of fruit, in any of the conditions in which it is used, may be had in twenty-four hours. The total number of boilings that can be had having been ascertained, proper deduction should be made for doubling; as, for instance, a still that can be boiled off seven times in twenty-four hours may require two boilings to double the singlings produced, thus leaving a capacity of five boilings in twenty-four hours. Apples, peaches, and grapes, from which brandy is distilled^ are used in such a variety of conditions, in different sections of the country, that it is difficult to give a classification of these materials which will embrace every condition in which they may be used. The following classification will, however, be found sufficiently comprehensive to embrace any of the ordinary conditions in which the ftuit is distilled, viz. : pomace, cider, must, sour wine, wash, cheese, and lees. The blanks will be found to con- tain a coluinn for " other material," in which to embrace material not clearly coming under either of the abo^ classifications. By pomace is meant the crushed fruit without the juice expressed there&om; cider, the expressed juice of the apple ; must, the unfermented juice of the grape ; sour wine, the fermented juice of the grape ; cheese, the residue of the fruit after the juice has been expressed therefrom ; wash, is the liquid expressed from the cheese of apples or grapes, after adding water thereto ; lees, or "piguetie,^^ the dregs or settlings of wine. The spirit-yielding capacity of these several conditions of the fruits is so vari- able that it is difficult for this ofiice to lay down any fixed rules on the subject, but it must necessarily leave the determination of the amount of •spirits to be produced from a given quantity of each of these materials to 150 V. S, INTBEKAL EEVESXTB LAWS. the judgment of the assessor and his designated assistants, they acting upon the most reliable information that can be obtained from past experiences in the particular locality in which they are making the sur- Teys. From the information contained in the records of this office, and derived from other reliable sources, it is believed that proof brandy may be distilled from these materials as follows : One gallon from every 17- gallons of apple or peach pomace ; one gallon from every 8 gallons of grape pomace ; one gallon from every 13 gallons of cider ; one gallon from every 5 gallons of must ; one gallon from every 7 gallons of sour wine. The spirit strength of the other materials must be determined solely in the light of experience in each particular locality. This office is not pre- pared to give any rules relative thereto. Having thus ascertained the number of gallons of each material that can be distilled in twenty-four hours, and the spirit strength thereof, the capacity of the still or stUls for twenty-four houis is readily arrived at. 13 I. R. R. 1. Distilling not to commence until Bond is given. [Sec. 11. Guiy 2o, i868.) And he it further enacted, That after the passage of this act it shall uot be lawful for any assessor to assess a special tax upon any distiller, or for the col- lector to collect the same, or for any distiller who has heretofore paid a special tax as such to continue the business of distilling until such distiller shall have given the bond re- quired by this act, and shall have comjilied with the pro- visions of law having reference to the registration and survey of distilleries, and having reference to the arrange- ment and construction of distilleries, and the premises con- nected therewith, in manner and as required by this act; nor shall it be lawful for any assessor of internal revenue to assess, or for any collector to collect, any special tax for dis- tilling on any premises distant less than six hundred feet {a) from any premises used for rectifying, nor shall any assessor assess or collector collect any special tax for rectifying distilled spirits on any premises distant less than six hundred feet from any distillery when the distillery and rectifying estab- lishments are occupied and used by different persons ; nor shall the process of distillation and rectification both be carried on within the distance of six hundred feet. In all cases where a distillery and rectifying estal5Iishment, distant the one from the other less than six hundred feet, are occupied and used by the same person, said person shall have the right to elect which business shall be discontinued at that place. In all cases where rectifying or distilling shall be discontinued under the pro- visions of this section, and the time for which the special tax for rectifying or distilling was paid remains unexpired, the Secretary of the Treasury is hereby authorized to refund out of any money in the treasury not otherwise appropriated, on KTJLINGS, DECISIONS, ETC. 151 requisition of the Commissioner of Internal Revenue, a propor- tionate part of any sum originally paid for special tax therefor, which shall be in such ratio to the whole sum paid as the unex- pired time for which special tax was paid shall bear to the whole term for whicii the same was paid. Any collector or assessor of internal revenue who shall fail to perform any duty imposed by this section, or sliall assess or collect any special tax in violation of its provisions, shall be liable to a penalty of five thousand dollars for each offence.] (a) Where two establishments owned by different persons are within the prohibited distance of each other, the first party ts^o in good faith gives the notice required by section six, would acquire a right of prefer- ence subject to be divested by laches, fraud, or failure to complete his compliance with the law in other respects. 8 I. R. R. 73. Where Stills may be used. [Sec. 12. juiy =0, ises.) And le it further enacted, That no person shall use any still, boiler, or other vessel for the purpose of distilling in any dwelling-house, nor in any shed, yard, or inclosure connected with any dwelling-house, nor on board of any vessel or boat, nor in any building, or on any premises where beer, lager beer, ale, pprter, or other fermented liquors, vinegar or ether are manufactured or produced, or where sugars or sirups are refined, or where liquors of any description are retailed, or where any other business is carried on, nor within- six hundred feet from any premises authorized to be used for rectifying ; and every person who shall use any still, boiler, or other vessel for the purpose of distilling, as' aforesaid, in any building or other premises where the above specified articles are manufac- tured, produced, refined, or retailed, or other business is carried on, or on board of any vessel or boat, or in any dwelling-house, or other place as aforesaid, or shall aid or assist therein, or who shall cause or procure the same to be done, shall, on convic- tion, {a) be fined one thousand dollars and imprisoned for not less than six months nor more than two years, in the discretion of the court: Provided, That saleratus may be manufactured, or meal or flour ground (5) from grain, in any building or on any premises where spirits are distilled ; but such meal or flour only to be used for distillation on the premises.] (ffi) A party who has been indicted, tried, and acquitted, on the charge of carrying on the business of a distiller without paying tax, may be indicted for using a still in a dwelling-house. » The defendant could not, under the former indictment, have been convicted of the offence embraced in the latter, nor would the evidence necessary to support the latter indict- 152 U. S. INTEKNAL KEVENUE LAWS. ment have been sufficient to warrant a conviction under the earlier one. V. S. V. Plecke et al. 7 I. R. R. 206. (b) Where there are mills attached to a distillery, they must be so enj tirely separated by solid walls and otherwise as to be, in fact, independent premises; although both establishments may be driven by the same power, they must be so arranged that the description of the distillery premises on Form 37 does not include the mill. 9 I. R. R. 147. Capacity Tax. [Sec. 13. (juiy 20, ises.) And he it fuvther enacted, That there shall be assessed and collected monthly, from every authorized distiller whose distillery has an aggregate ca- pacity for mashing and fermenting twenty bushels of grain or less, or sixty gallons of molasses or less, in twenty-four hours, a tax (a) of two dollars per day, Sundays excepted ; and a tax of two dollars per day for every twenty bughels of grain or sixty gallons of molasses of said capacity in excess of twenty bushels of grain or sixty gallons of molasses in twenty-four hours. Eut any distiller who shall suspend work, as provided by this act, shall pay only two dollars per day dur- ing the time the work shall be so suspended in his distillery.] (as) The per diem capacity tax will commence on the third day after the approval of the bond, and the full capacity tax will be assessed for every calendar day thereafter, Sundays excepted, reckoning the third day after the approval of the bond as a whole day, unless work shall be suspended as provided in section 23. But, should the distiller commence distilling at any time prior to the third day after the approval of the bond, the capacity tax will be assessed from the time when the production of spiiits begins. 9 I. R. R. 149. A distiller of brandy from apples, peaches, or grapes exclusively, is subject to the per diem capacity tax until the distillery is closed for the season, except for those days on which he proves, to the satisfaction of the assessor, the distillery was not in operation. 8 I. R. R. 171. Duties of Manufacturers of Stills. [Seo. 14. (luiy 20, 1868.) And he it further enacted, That any person (a) who shall manufacture any still, boiler, or other vessel, to be used for the purpose of distilling, shall, before the same is removed from the place of manufacture, notify in writing the assessor of the district in which such still, boiler, or other vessel is to be used or set up, by whom it is to be used, its capacity, and the time when the same is to be removed from the place of manufacture ; and no such still, boiler, or other vessel shall be set up without the permit in writing of the said assessor for that purpose ; and any person who shall set up any such still, boiler, or other vessel, without first obtaining a permit from the said assessor of the district in which such still, boiler, or other vessel is intended to be used, or who shall KULINGS, DECISIOIfS, ETC. 153 fail to give such notice, shall pay in either case the sum of five hundred dollars, and shall forfeit the distilling apparatus thus removed or set up in violation of law.] (a) The manufacturer should inform himself of the use for which each boiler or other vessel is designed, or he may notify the collector in every case indiscriminately. 5 I. E. R. 163. The term " for distilling " will be construed to mean " for distilling spirits." This limitation of the construction of the term does not furnish sufficient grounds upon which any tax, assessed under a more literal con- struction, win be refunded. 9 I. R. K. 157. Distillery Warehouses. [Sec. 15. (juiy 2°, ises.) And he ii further enacted, That every distiller shall provide, at his own expense, a warehouse, [a) to be situated on and to constitute a part of his distillery prem- ises, to be used only for the storage of distilled spirits, of his own manufacture ; but no dwelling-house shall be used for such purpose, and no door, window, or other opening shall be made or permitted in the walls of such warehouse leading into the distillery or into any other room or buildin'g ; and such ware- house,- when approved by the Commissioner of Internal Rev- enue, on report of the collector, is hereby declared to be a bonded warehouse of the United States, to be known as a dis- tillery warehouse, and shall be under the direction and control of the collector of the district, and in charge of an internal revenue storekeeper assigned thereto by the Commissioner of Internal Revenue ; and the tax on spirits stored in such -ware- house shall be paid before removal from such warehouse.] (a) A portion of the distillery may be used as a distillery warehouse ; but in such case it must be separated from the distillery by a solid brick or plank partition ; and collectors will, when such warehouse is applied for, make a careful examination as to the sufficiency of the division walls ; but the entrance to such room must be from the street or yard. If the dis- tiller elects, such warehouse may be a separate building, but it must be upon the premises actually occupied for the distillery. It must be a por- tion of the distillery, adjoining the distUlery building, or within, or ad- joining the distillery yard. Each distiller will make application in writing to the collector of the district, stating fully the precise location, size, description, and construc- tion of the room or building desired for such warehouse, specifying its location on, or by reference to, the plan of the distillery ; and upon receipt of such application, the collector will, by himself or one of his deputies, make a full and careful examination thereof, and, if the same is approved by Tiim, will transmit said application to the Commissioner, with his report thereon, for his approval, stating the estimated storage capacity of such warehouse ; and when approved by the Commissioner, a storekeeper wUl be assigned to such warehouse. Such warehouse must be established for each distillery before any spirits are distilled, and all expenses connected with such warehouse must be paid by the distiller. 9 I. R. R. 150. A distillery warehouse will only be established for an authorized dis- tiller, and at an authorized distillery ; yet having been so established, the 154 u. s. internaij eevekue laws. distiller has acquired the right under the law to have his spirits remain in bond according to the condition of his warehousing bond, which is that the tax shall be paid thereon before removal from such distillery ware- house, and within one year from the date of the bond. The failure of the distiller to renew his distiller's bond does not work a discontinuance of his bonded warehouse. The distillery warehouse wiU be continued as such in charge of the storekeeper assigned thereto, until all the spirits stored therein are withdrawn, and the tax paid thereon, the distiller, of course, being liable upon his bond for refunding to the government the compensation of such storekeeper. 11 I. E. K. 131. Whenever the Commissioner shall be of opinion that any warehouse is unsafe, or unfit for use, or the merchandise therein liable to loss or great wastage, he may discontinue such warehouse, and require the merchandise therein to be transferred to such other warehouse as he may designate, within a time to be prescribed by him, and at the expense Of the owner of the merchandise. If such transfer is not made, or such expenses not paid by the owner, the merchandise will be seized and sold by the collector, as upon a distraint. 9 I. R. R. 157. Receiving Cisterns. [Sec. 16. auiyw, ises.) And he it further enacted, That the owner, agent, or superintendent of any distillery, established as hereinbefore provided, shall erect, in a room or building to be provided and used for that purpose, and for no other, and to be constructed in the manner to be pre- scribed by the Commissioner of Internal Revenue, two or more receiving cisterns, (a) each to-be at least of sufficient capacity to hold all the spirits distilled during the day of twenty-four hours, into which shall be conveyed all the spirits produced in said distillery ; and each of such cisterns shall be so constructed as to leave an open space of at least three feet between the top thereof and the floor or roof above, and of not less than eighteen inches between the bottom thereof and the floor below, and shall be so situated that the officer can pass around the same, and shall be connected with the outlet of the worm or condenser by suitable pipes or other apparatus so con- structed as always to be exposed to the view of the officer, and so connected and constructed as to prevent the abstraction of spirits while passing from the outlet of the worm or condenser back to the still or doubler, or forward to the receiving cistern ; such cisterns, and the room in which they are contained, shall be in charge of and under the lock and seal of the internal revenue ganger designated for that duty ; and on the third day after the spirits are C9nveyed into such cisterns, the same shall be drawn off into casks under the supervision of such ganger in the presence of the storekeeper, and be removed directly to the distillery ware- house ; and on special application to the assessor or assistant assessor by the owner, agent, or superintendent of any distillery, the spirits may be drawn off from the said cisterns under the EULIKGS, DECISIONS, ETC. 155 supervision of the ganger at any time previous to the third day. All locks and seals required by law shall be provided by the Commissioner of Internal Eevenue at the expense of the owner of the distillery or warehouse ; and the keys shall be in charge of the collector or such ganger as he may designate.] (a) Each of the cisterns must be of a sufficient capacity to hold all the spirits distilled during the day of twenty-four hours. These cisterns must be so constructed as to leave an open space of at least three feet between the top and roof or floor above, and a space of not less than eighteen inches be- tween the bottom and the floor below ; and they must be separated so that the ofloicer may pass around them; and the pipes, or other apparatus by which the cisterns are connected with the outlet of the still, boilers, or other vessels, must be so constructed as to be always exposed to the view of the officer, and so as to prevent the abstraction of spirits while passing irom the outlet of the worm or condenser back to the still or doubler, or forward to the receiving cistern. These cisterns must not be connected with each other. Where a distiller draws off his spirits but once in three days, he must have three cisterns. He cannot, in any case, have less than two. The product of each day's distillation must be run into one cistern, and one only. If the distiller has not provided at least two separate cisterns, each of a capacity sufficient to hold a fuU day's product, the assessor has HO right to approve his_ bonds. 9 I. R. R. 148. A distiller may cany his product through as many processes of distilla- tion as he pleases, provided the process is continuous, commencing with the distillation of the mash wort or wash, the product of the distillation of the mash being carried through continuous closed vessels and pipes, until the final product is deposited in the receiving cisterns. This does not authorize the leaching of the spirits through charcoal or any other substance ; nor the purifying and refining of distilled spirits in any other mode of distiUation ; and no materials or substances whatever can be add- ed during the process. The apparatus must be so constructed that there can be no access had to the spirits on its passage through the pipes and vessels connecting the beer still with the receiving cisterns. Under these restrictions, an alcohol column mav be substituted for one of the doublers., 9 I. R. R. 158. A separator must be provided, unless the distiller is willing to discharge both high and low wines into the receiving cistern and pay tax on the en- tire product. The separator must be kept in perfect order so that the officer and distiller alike can at any time view the processes of discharge and separation of the spirits. Open tubs for the separation of the low and the high wines are prohibited. 9 I. R. R. 43. The storekeeper will see that all spirits manufactured each day are con- veyed into one of the receiving cisterns on the same day. The cisterns, and the room in which they are contained, must be m charge of and under the lock of the internal revenue ganger designated for that duty. The collector will designate the ganger to perform this duty. The supervisor, however, has power to transfer gangers so desig- nated from one distillery to another. In no case, however, will the store- keeper be allowed to hold the key or have charge of the. cistern room. The cistern room must not be opened, or suffered to remain open, except) when the designated ganger is present, nor will the key of the government at any time be suffered to pass into the possession of the distiller, or any person in his employ. 9 1 R. R. 149. The Register Seal Lock is prescribed. The locks may be obtained by application to the collector or assessor of the district. 10 I. R. R. 113. 156 U. S. ESTTEEIS^AL KBVBNUE LAWS. The Monogram Seal must be used in connection with the Register Seal iock. One set of pliers, together with one hundred lead plugs, will be re- quired at each distillery, and at each warehouse separate from a distillery, and will be entrusted to the care of the storekeepers, who will permit the gaugers and assistant assessors, and others haying custody of locks at each distillery or at each bonded warehouse, to use the same for the purpose of sealing these locks when required. These seals may be obtained by ap- plication to the collector or assessor of the district. 10 I. R. R. 153. "When the cisterns and apparatus have not been constructed in the mode required by the statute and the regulations, it is not necessary that this omission should have been made with intent to defraud. The penalty is incurred and the offence is complete when the defendants have left un- done those things which they ought to have done, and done things which they ought not to have done, and this without any criminal oriiaud- ulent intent. U. S. v. McKim & Co. 10 I. R. R. 74. Construction of Doors, Tubs, Tanks, etc. [Sec. 17. Quiy 20, ises.) And be it further enacted, That the door of the furnace of every still or boiler used in any distillery shall be so constructed that it may be securely fastened and locked. The fermenting tubs shall be so placed as to be easily accessible to any revenue ofBcer, and each tub shall have distinctly painted thereon in oil colors its cubic contents in gallons, and the number of the tub. There shall be a clear space of not less than one foot Mound every wood still, and not less than two feet around every doubler and worm tank. The doubler and worm tanks shall be elevated not less than one foot from the floor; and every fixed pipe to be used by the distiller, except for the convey- ance of water, or of spent mash or beer only, shall be so fixed and placed as to be capable of being examined by the officer for the whole of its length or course, and shall be painted, and kept painted, as follows ; that is to say : Every pipe {a) for the con- veyance of mash or beer shall be painted of a red color ; every pipe for the conveyance of low wines back into the still or doubler shall be painted blue ; every pipe for the conveyance of spirits shall be painted black ; and every pipe for the convey- ance of water shall be painted white. If any fixed pipe shall be used by any distiller which shall not be painted or kept painted as herein directed, or which shall be painted otherwise than as herein directed, he shall forfeit the sum of one thousand dollars. No assessor shall approve the bond of any distiller un- til all the requirements of the law and all regulations made by the Commissioner of Internal Revenue in relation to distilleries, in pursuance thereof, shall havQ been complied with. Any as- sessor who shall violate the provisions of this section shall for- BULINGS, DECISIONS, ETC. 157 feit and pay two thousand dollars, and shall be dismissed fi-om office.] (») The various pipes must be designated by these colors on the plan. 9 I. K. B. 148. Eegnlations concerning Signs. [Sec. 18. Quiy 20, ises.) And he it further enacted, That every person {a) engaged in distilling or rectifying spirits, and every wholesale liquor dealer and compounder of liquors, shall place and keep conspicuously on the outside of his dis- tillery, rectifying establishment, or place of business, a sign, in plain and legible letters, not less than three inches in length, painted in oil colors or gilded, and of 'a proper and proportionate width, the name or firm of the distiller, rec- tifier, wholesale dealer, or compounder, with the words : '" registered distillery," " rectifier of spirits," " wholesale liquor dealer," or " compounder of liquors," as the case may be ; and no fence or wall of a height greater than five feet shall be erected or maintained around the premises of any distillery, so as to prevent easy and immediate access to said distillery; and every distiller .shall furnish to the as- sessor of the district as many keys of the gates and doors of the distillery as may be required by the assessor, from time to time, for any revenue officer or other person who may be au- thorized to make survey or inspections of the premises or of the contents thereof; and said distillery shall be kept always accessible to any officer or other person having any such key. Any person who shall violate any of the foregoing provis- ions of this section by negligence or refusal, or otherwise, shall pay a penalty of five hundred dollars. Any person not having paid the special tax, as required by law, who shall put up the sign required by this section, or any sign indicating that he may lawfully carry on the business of a distiller, rectifier, wholesale liquor dealer, or compounder of liquors, shall forfeit and pay one thousand dgllars, and, on conviction, shall be im- prisoned not less than one month nor more than six months • and any person who shall work in any distillery, rectifying establishment, wholesale liquor store, or in the store of any compounder^ of liquors, on which no sign shall be placed and kept as hereinbefore provided, and any person who shall know- ingly receive at, carry or convey any distilled spirits to or from any such distillery, rectifying establishment, warehouse, or store, or who shall knowingly carry and deliver any grain, molasses, or other raw material to any distillery on which such sign shall not be placed and kept, shall forfeit all horses, carts, drays, wagons, or other vehicle or animal used in carrying or conveying of such property aforesaid, and, on conviction, shall 158 U, S. INTEEKAL EBVENUE LAWS. be fiaed not less than one hundred dollars nor more than one thousand dollars, or be imprisoned not less than one month nor more than six months.] (a) A compliance with the provisions of this section should be required of every person who is a wholesale liquor dealer, either in the popular senses or in the strict sense of the term, as defined in section 59. 9 I. R. K. 36. Other words may be added to the sign, if desired, to show the precise character of the business, as for instance, " In alcohol only." 9 I. K. R. 5. Books to be kept by Distillers. [Sec. 19. guiy 20, isas.) And be it further enacted, That every person ^making or distilling spirits, or owning any still, boiler, or other vessel used for tlie purpose of distilling spirits, or having such still, boiler, or other vessel so used under his supermtendence, either as agent or owner, or using any such still, boiler, or other vessel, shall, from day to day, make, or cause to be made, true and exact entry in a book (a) or books, to be ke})t by him, in such form as the Commissioner of Internal Revenue may prescribe, of the kind of materials, and the quantity in pounds, bushels, or gallons purchased by him for the production of spirits, from whom and when purchased, and by what conveyance delivered at said distillery, together with the amount paid for therefor, the kind and quantity of fuel purchased for use in the distillery, and from whom purchased, the amount paid for ice or water for use in the distillery, the repairs placed on said distillery or distilling apparatus, the cost thereof, and by whom and when made, and [of] the name and residence of each per- son employed in or about the distillery, and in what capacity ■employed ; and in another book shall make like entry [of] the quantity of grain or other material used for the production of spirits, the time of day when any yeast or other composition is put into any mash or beer for the puipose of exciting ferment- ation, the quantity of mash in each tub, designating the same by the number of the tub, the number of dry inches, that is to say, the number of inches between the top of each tub and tlie surface of the mash or beer therein at the time of yeasting, the gravity and temperature of the beer at the time of yeasting, and on every day thereafter its quantity, gravity, and tempera- ture at the hour of twelve meridian ; also the time when any fermenting tub is emptied of ripe mash or beer, the number of gallons of spirits distilled, the number of gallons placed in warehouse, and the proof thereof, and the number of gallons sold or removed, with the proof thereof, and the name, place of business, and residence of the person to whom sold ; and every fermenting tub shall be emptied at the end of the fermenting BULINGS, DECISIONS, ETC. 159 period, and shall remain empty for a period of twenty-four hours. On the first, eleventh, and twenty-first days of each month, or within five days thereafter, respectively, every distil- ler shall render to the assistant assessor an account in duplicate, taken from his books, stating the quantity and kind of materi- als used for the production of spirits each day, and the number of wine gallons and of proof gallons of spirits produced and placed in warehouse. And the distiller or the principal manager of the distillery shall make and subscribe the following oath, to be attached to said return : " I, , distiller (or principal manager as the case may be), of the distillery at , do solemnly swear that, since the date of the last return of the business of said dis- tillery, dated day of to day of , both in- clusive, there was produced in said distillery, and withdrawn and placed in warehouse, tlie number of wine gallons and proof gallons of spirits, and there were actually mashed and used in said distillery, and consumed in the production of spirits therein, the several quantities of grain, sugar, molasses, and other materials, respectively, hereinbefore specified, and no more." The said book shall always be kept at the distillery, and be always open to the inspection of any revenue ofiicer, and, when filled up, shall be preserved by the distiller for a period not less than two years thereafter, and, whenever required, shall be produced for the inspection of any revenue ofiicer. If any false entry shall be made in either of said books, or any entry re- quired to be made therein shall be omitted therefrom, for every such false entry made, or omission, the distiller shall forfeit and pay a penalty of one thousand dollars. And if any such false entry shall be made, or any entry shall be omitted therefrom, with intent to defraud or to conceal from the revenue officers any fact or particular required to be stated and entered in either of said books, or to mislead in reference thereto, or if any distiller as aforesaid shall omit or refuse to provide either rTERKAL EEVEinjE LAWS. tax on any distilled spirits, in anj manner whatever, shall for- feit and pay double the amount of the tax so evaded or attempted to be evaded ; and any person who shall change or alter any stamp, mark, or brand on any cask or package containing distil- led spirits, or who shall put into any cask or package spirits of greater strength than is indicated by the inspection mark thereon, or who shall fraudulently use any cask or package having any inspection mark or stamp thereon, for the purpose of selling other spirits or spirits of quantity or quality diiferent from the 'spirits previously inspected theiein, shall forfeit and pay the sum of two hundred dollars for every cask or package on which the stamp or mark is so changed or altered or which is so fraudulently used, and, on conviction, shall be fined for each such offence not less than one hundred dollars nor more than one thousand dollars, and imprisoned not less than one month nor more than one year.] Penalty for using False Weights. [Sec. 40. Ouiy m, 1868.) And he it further enacted, That any person who shall knowingly use any false weights or measures in ascertaining, weighing, or measuring the quantities of grain, meal, or vegetable materials, molasses, beer, or other substances to be used for distillation, or who shall destroy, break, injure, or tamper with any lock or seal which may be placed on any cistern-room or building, by the duly authorized officers of the revenue, or shall open said lock or seal, or the door to such cistern-room or building, or shall in any manner gain access to the contents therein in the absence of the proper officer, shall, on conviction, be fined not less than five hundred dollars nor more than five thousand dollars, and imprisoned not less than one year nor more than three years ; and any person who shall use any molasses, beer, or other substance, whether fermented on the premises or elsewhere, for the purpose of producing spirits, before an account for the same shall have been regis- tered in the proper record book provided for that purpose, shall forfeit and pay the sum of one thousand dollars for each and every offence so committed.] Detention of Suspected Spirits. [Sec. 41. (juiy m, ises.) Andheit further enacted^Thai it shsXl. be lawful for any internal revenue officer to detain any cask or package containing, or supposed to contain, distilled spirits, when such officer has reason to believe the tax imposed by law upon the same has not been paid, or that the same is being removed in violation of law ; and every such cask or package may be held EUIilKGS, DECISIONS, ETC. 191 by such officer at a safe place until it shall be determined whether the property so detained is liable by law to be pro- ceeded against for forfeiture; but such summary detention shall not continiie in any case longer than forty-eight hours, without process of law or intervention of the officer to whom such detention is to be reported.] Bonding Distilleries that have been seized. [Sec. 42. (juiy 20, isss.) And he it further enacted, That no dis- tillery nor distilling apparatus seized for any violation of law shall be released to the claimant or any intervening party before judgment, except in case of a distillery for which the special tax had been paid, and which' has a registered producing capacity of one hundred and fifty proof gallons, or more, per day, on showing by sufficient affidavits that there are hogs or other live stock, not less than fifty head in number, depending for their feed on the products of said distillery which would suifer injury if the busifiess of such distillery is stopped ; such distillery in that ease may be released to the claimant, or any other inter- vening party, at the discretion of the court, on a bond to be given and approved in open court, with two or more sureties, for the full appraised value of all the property seized, which value shall be ascertained by three competent appraisers to be des- ignated and appointed by the court. In case of the seizure of and judgment of forfeiture against any distillery used or fit for use in the production of distilled spirits, having a registered producing capacity of less than one hundred and fifty gallons per day, or of any distillery for the non-payment of the special tax, the still, stills, doubler, worm, worm tub, and all mash tubs and fermenting tubs shall be so destroyed as to prevent the use of the same, or any part thereof, for the purpose of distilling ; and the materials shall be sold as in case of other forfeited property.] Obliteration of Stamps, Marks, &c. [Sko. 43. (July 20, 1868.) And le it further enacted. That it shall be the duty of every person who empties oiv draws off, or causes to be emptied or drawn off, any distilled spirits from a cask or package bearing any mark, brand, or stamp required by law, at the time of emptying such cask or package, to efface and obliter- ate (a) said mark, stamp, or brand. Any such cask or package from which said mark, brand, and stamp is not so effaced and obhterated, as herein required, shall be forfeited to the United States, and may be seized by any officer of internal revenue wherever found. Any railroad company, or other transporta- tion company, or person, who shall receive, or transport, or have 192 U. S. INTEKNAL REVENUE LAWS, in possession with intent to transport, or with intent to cause or procure to be transported, any such empty cask or package, or any part thereof, having thereon any brand, mark, or stamp required by law to be placed on any cask or package containing distilled spirits, shall forfeit three hundred dollars for each such cask or package, or any part thereof, so received or transported,, or had in possession with the intent aforesaid ; and any boat, railroad car, cart, dray, wagon, or other vehicle, and all horses or other animals used in carrying or transporting the same, shall be forfeited to the United States. Any person who shall fail or ne;3;lect to efface and obliterate said mark, stamp, or brand, at the time of emptying such cask or package, or who shall receive any such cask or package, or any part tliereof, with the intent aforesaid, or who shall trans- port the same, or knowingly aid or assist therein, or who shall remove any stamp provided by this act from any cask or package containing or which had contained distilled spirits, without defacing and destroying the same at the time of such removal, or who shall aid or assist therein, or who" shall have in his possession any such stamp so removed as aforesaid, or have in his possession any cancelled stamp, or any stamp which has been used, or which purports, to have been used, upon any cask or package of distilled spirits, shall be deemed guilty of a felony, and, on conviction, shall be fined not less than five hundred dollars nor more than ten thousand dollars, and im- prisoned not less than one year nor more than five years.] (a) The essence of the requirement of this section is, that the stamp shall be efifaced and obliterated at the time any distilled spirits are emptied or drawn off from the cask or package, so that there shall be no opportu- nity given for the commission of fraud. It is of no consequence 'what the intention of the defendant was. It is of no consequence that he himself never sold an empty barrel or parted with one until he had obliterated the stamps upon it. There is no discretion given to the court whether to fine or imprison for the offence. The offender must be fined and also impris- oned. U. S. V. Quantity of Spirits, 11 I. E. R. 3. Where a clerk has emptied some barrels, carried them to a room where such are kept, and is in,the act of effacing the stamps and obliterating the marks when the whole stock is seized by the revenue officer, and he is thus prevented from effacing the stamps and marks, in contemplation of law the stamps and brands are effaced. U. S. v. 10 Bbls. 11 I. R. R. 5. Penalty for Distilling without paying Special Tax. [Sec. 44. (juiy m, ises.) And le it further enacted. That any person who shall carry on the business of a distiller, rectifier, compounder of liquors, wholesale liquor dealer, retail liquor EULIKaS, DECISIONS, ETC. 193 ufacturer of stills, without haviag paid the special tax (a) as required by law, or who shall carry on the business of a distil- ler without having given bond as required by law, or who shall engage in or carry on the business of a distiller, with intent to -defraud the United States of the tax on the spirits distilled by hitn, or any part thereof, shall, for every such offence, be fined not less than one thousand dollars nor more than five thousand dollars, and imprisoned not less than six months nor more than two years. And all distilled spirits or wines, and all stills or other apparatus, fit or intended to be used for the distillation or rectification of spirits, or for the compounding of liquors, owned by such person, wherever found, and all distilled spirits or wines, and personal property found in the distillery or recti- fying establishment, or in the store or other place of business of the compounder, or in any building, room, yard, or inclosure connected therewith, and used with or constituting a part of the premises; and all the right, title, and interest of such person in the lot or tract of land on which such distillery is situated, and all right, title, and interest therein of every person who knowingly has suffered or ^permitted the business of a dis- tiller'to be there carried on, or has connived at the same; and all personal property owned by or in possession of any person who has permitted or suffereds-any building, yard, or inclosure, or any part thereof, to be used for purposes of ingress or egress to or from such distillery which shall be found in any such building, yard, or inclosure, and all the right, title, and interest of every person in any premises used for ingress or egress to or from such distillery, who has knowingly suffered or permitted such premises to be used for such ingress or egress, shall be forfeited to the United States.] (a) To support the charge of violating this section, it is not necessary to aver or prove that the defendant had registered his still or given notice ■of his intention to distil, but only that he was engaged in the business of a distiller in any of the ways or by any of the means specified in the defini- tion of a distiller as given by the law, without having paid the special tax or given the required bond. It applies to mere illicit distilling. U. S. v. Mathoit, 11 1. B. R. 158. Three distinct ofifences are created by this section. The for^iture of real estate is confined to distillers, but not so as to the spirits and apparatus for distillation, rectification or compounding of liquors found on the premises owned by the person carrying on either of the kinds of business enumerated. It is not necessary that the omission to pay the tax should have been done with an intent to defraud the United States. To consti- tute the offence but two things are necessary to be averred and proved : 1st, the carrying on the business ; 2d, that the special tax was not paid as 13 194 U. S. INTERNAL REVENUE LAWS. required by law. An averment that the defendant has not paid the special' tax imposed by the act of July 20, 1868, is sufficient. U. S. v. Rectifying Establishment, 11 I. R. R. 46. Congress can impose a tax on distilled spirits, and provide the processes- and measures for collecting it. To make the defrauding of the government of the tax a cause of forfeiting the distillery premises is an obvious, suit- able, and germane measure. The distillery is made a pledge to the amount of its value that the business of distilling in it shall be fairly carried on, and the owner by his written permit consents to this pledge. U. S. v. Dis- tillery, 11 I. R. R. 174. The forfeiture is limited to the distillery premises, i. e. , to such real estate and premises as were used in connection with or as auxiliary to the illicit business. It does not extend to adjoining lots and premises, though owned by the offender. U. S «. Lot of Land, 11 I. R. R. 126. When separate offences are alleged, requiring a different judgment of forfeiture, they should be charged in different counts. U. S. «. Rectifying Establishment, 11 L R. R. 45. Books to be Kept by Rectifiers, Wholesale Dealers, &c. [Sec. 45. (Juiy », ises.) And he it further enacted, That every rectifier, -wliolesale liquor dealfer, and compounder of liquors, shall provide himself with a book, {a) to be prepared and kejit in such form as shall be prescribed Jay the Comiuissioner of Inter- nal Revenue, and shall, on the same day on which he receives, any spirits, and before he shall draw off any part thereof, or add water or anything thereto, or in any respect alter the same, enter in snch book, and in the proper columns respectively prepared for the purpose, the date when, the name of tlie person or firm from whom, and the place whence, the spirits were received, by whom distilled, rectified, or com- pounded, and when, and by whom, inspected, and, if in the original package, the serial number of each package, the num- ber of wine gallons and proof gallons, the kind of spirit, and the number and -kind of adhesive stamps thereon ; and every such rectifier, compounder, and wholesale dealer, shall, at the time of sending out of his stock or possession any spirits, and before the same shall be removed from his premises, enter, in like manner, in the said book, the day when, and the name and place ^f business of the person or firm to whom, such spirits are to be sent, the quantity and the kind or quality of such spirits, and also the number of gallons and fractions of a gallon at proof; and, if in the original packages in which they were received, he shall enter the name of the distiller and the serial number of the package. And every such book shall be at all times kept in some public or open place on the premises of such rectifier, wholesale dealer, or compounder of liquors, respect- BULIKGS, DECISIONS, ETC. 195 ively, for inspection ; and any revenue officer may make an examination of such book and take an abstract therefrom ; and every such book, when it has been filled up as aforesaid, shall be preserved by such rectifier, wholesale liquor dealer, or com- pounder of liquors, for a period not less than two years ; and during such time it shall be produced by him to every revenue officer demanding the same ; and if any rectifier, wholesale dealer, or compounder of liquors, shall refuse or neglect to pro- vide such book, or to make entries therein as aforesaid, or shall cancel, alter, obliterate, or destroy, any part of such book, or any entry therein, or make any false entry therein, or hinder or obstruct any revenue officer from examining such book, or making an entry therein, or taking any abstract therefrom ; or if such book shall not be preserved or not produced by any rectifier, or wholesale dealer, or compounder, as hereinbefore directed, he shall pay a penalty of one hundred dollars, and, on conviction, shall be fined not less than one hundred dollars nor more than five thousand dollars, and imprisoned not less than three months nor more than three years.] (a) Imported spirits are subject to the requirements of this section. 9 I. E. R. 36. Books in the Form of No. 53 must be used for keeping an account of all distilled spirits received and sent out. 11 I. R. R. 139. This section applies to every case of removal, whether upon sale or otherwise, irom the premises of a rectifier, compounder, or wholesale liquor dealer. It is sufficient to enter each and every package exceeding five gal- lons, and to enter daily in aggregate all lesser quantities removed. 8 I. R. R. 173. The term "wholesale dealers" is used only in the popular sense of the term, and refers to all who are wholesale dealers in that sense, having refer- ence to the general character, and not to the annual amount of their sales. This section does not apply to those who are not wholesale liquor dealers, in the popular sense, but who are classed as such in law only, because their retail sales exceed $35,000 per annum. 9 I. R. R. 36. The requirements of this section are perfectly plain ajid unmistakable. The party must make the entries every day, day by .day, as he receives the spirits, upon the day on which he receives them. U. S. v. Quantity of Spirits, 9 I. R. R. 9; s. c. 3 A. L. T. (0. R.) 33. The proper entries must be made, but it is wholly immaterial by whom they aremade. They may be made by a.clerk. If they are in fact made, the law is satisfied. But a party cannot excuse himself from responsibility for the proper entries riot being made, by showing that he employed some one specially to make them, and directed the person employed to make them. U. S. v. 50 Bbls. 11 I. R. R. 94 ; TJ. S. v. Quantity of Spirits, 111. R. R. 3 ; s. c. 3 A. L. T. (C. R.) 10. The statute requires the rectifier and wholesale dealer to make the en- tries respecting all spirits which come into their respective establishments from all sources whatever. It is not limited to spirits purchased and sold. U. S. V. 50 Bbls. 11 I. R. R. 94 : U. S. v. 1 Ebl. 4 1. R. R. 146. 196 U. S. INTBENAIi BETENUE LAWS. It is not necessary that the party should know that the thing done or omitted to he done is a violation of the law, and that he should purposely intend to violate the law. No man is under obligation to engage in these pursuits, but if he does, he is under obligation to inform himself of what the law requires or forbids, and if he fails so to do, must bear the conse- quences of his acts. U. S. s. Rectifying Establishment, 11 I. R. R. 45 ; U. S. V. 39 Bbls. 7 I. R. R 38 ; U. S. v. Butcher, 7 I. R. R. 132 ; s. c.l A. L. T. (C. R.) 60 ; U. S. •». 1 Cask, 10 I, R. R. 93. The offence is not a continuing one. It was complete when the entry was not made in the proper book on the day the spirits were purchased and received. No entry on a subsequent day could condone or wipe out the offence already committed, nor would the failure to make the entry on such subsequent day be a new offence or a repetition of the old one. U. S. V. 1 Cask, 10 I. R. R. 93. The entries must be accurate. The forfeiture does not depend upon the entry being fraudulent or wilfully false, but upon the neglect or refusal to make a correct entry. The amount lost by the process of rectification and redistillation should not be entered as sold and delivered. U. S. ■». 50 Bbls. 111. R. R. 94. It is not necessary to aver the time the liquors were received or sent out, or from whom received or to whom sent. U. S. ». Rectifying Establish- ment, 111. R. R. 46. Purchases of Quantities Greater than Twenty Gallons. [Seo. 46. July m, 1868.) And be it further enacted, That it shall not be lawful for any rectifier of distilled spirits, compounder of liquors, liquor dealer, wholesale or retail liquor dealer, to pur- chase or receive {a) any distilled spirits in quantities greater than twenty gallons from any person other than an authorized rectifier of distilled spirits, compounder of liquors, distiller, or , wholesale liquor dealer. Any person violating this section shall forfeit and pay one thousand dollars : Prcmtded, That this ' shall not be h§ld to apply to judicial sales, nor to sales at pub- lic auction made by an auctioneer who has paid a special tax as such.] (as) The word " receive," as used in this section, means received for sale. A party who receives for storage only, and not for sale, does not incur the penalty. U. S. ■». Fridenburg, ll I. R. R. 5. Reinspection on Change of Package. [Sec. 47. auiy 20, i868.) And he it further enacted, That all dis- tilled spirits drawn from any cask or other package and placed in any other cask or package containing not less than ten gallons, . (a) 'and intended for sale, shall be again inspected and gauged, and the cask or package into which' it is so transferred shall be EULIKGS, DECISIONS, ETC. 197 marked or branded, and sucli marking and branding shall dis- tinctly indicate the name of the ganger, the time and place of inspection, the proof of the spirits, the particular name of such spirits as known to the trade, together with the name and place of business of the dealer, rectifier, or compounder, as the case may be ; and in all cases, except where such spirits have been recti- fied or compounded, the name also of the distiller, and the dis- tillery where such spirits were produced, and the serial num- ber of the original package ; and the absence of such mark or brand shall be taken and held as sufficient cause and evidence for the forfeiture of such unmarked packages of spirits.] (a) The provisions of this section apply to all cases where distilled, spirits are drawn from any cask or package and placed in any other cask or package containing not less than ten gallons, and intended for sale, without regard to the person by whom or the place where such change is made. 10 I. R. R. 82. This section does not apply to imported spirits. Imported spirits, when subjected to any of the processes of rectification in the United States, loses its foreign identity, and should thereafter be treated as domestic spir- its. 10 I R, R. 105. The addition of pure water to spirits does not constitute rectification. When part of the spirits are withdrawn from a package, and the package iilled with water, such package must be gauged, stamped, and marked or branded, the same as if the spirits had been changed to an entirely different package 10 I. R. R. 153. The spirits may be removed into packages containing less than five gal- lons, and the same need not be gauged, stamped, or branded. 9 I. R. R. 5 ; 10 I. R. R. 154. A dealer must not mix spirits of the same kind from different distiUers, or distilleries or rectifiers, as by so doing he places it beyond his power to mark and brand the new packages as required by this section. 10 I. R. R 131. This section applies to distilled spirits drawn from one cask and placed in another cask containing not less than ten gaUons, and intended for sale, no matter by whom done or where done. U. S. v. Rectifying Establishment, 11 1. R. R. 45 ; U. S. v. 8 Bbls. 6 I. R. R. 134. Tax on Imitations of SparkUng Wine. [Sec. 48. (Juiy 20, aes.) And le it further enacted, That on all wines, {a) liquors, or compounds, known or denominated as wine, and madein imitation of sparkling wine or champagne, but not made from grapes grown in the United States, and on all liquors not made from grapes, currants, rhubarb, or berries grown in the United States, but produced by being rectified or mixed with distilled spirits or by the infusion of any matter in spirits, to be sold as wine or by any other name, there shall be levied and paid a tax of six dollars per dozen bottles, each bot- tle containing more than one pint and not more than one quart ; or three dollars per dozen bottles, each bottle containing 198 U. S. INTEENAL REVENUE LAWS. not more than one pint, and at the same rate for any quantity of such merchandise, however the same may be put up or what- ever be the package. And any person manufacturing, com- pounding, or puttmg up such wines, shall, without previous demand, make return, under oath or affirmation, to the assist- ant assessor, on the first and fifteenth day of each and every month, or within five days thereafter, of the entire amount of such wines manufactured and sold or put up and sold during the first fifteen days of the month and the residue of the month, respectively, except when the wines so manufactured or put up are used exclusively by the family of the person manufacturing the same ; and the tax herein imposed shall be payable at the time such return is made. And in case such manufacturer shall neglect or refuse to make such return with- in the time specified, the assessor shall proceed to ascertain the amount of tax due, as provided in other cases of a refusal or neglect to make returns, and shall assess the tax, and add a penalty of fifty per centum to the amount ; which said tax and also said penalty shall be collected in the manner provided for the collection of tax on monthly and other lists. Any person who shall fraudulently evade or attempt to evade the payment of the tax herein imposed shall, on conviction, be fined not less than five hundred dollars nor more than five thousand dollars, and imprisoned not less than six months nor more than two years.] (a) In order to subject wines to this tax it is necessary that they should be made in imitation of sparkling wine or champagne ; and further, that they should not be made from grapes grown in the United States. Parties who use native wine made from grapes grown in the United States, and convert the same into sparkling wine, need not pay the tax. The use, how- ever, of any portion of foreign wine would make the product liable to a tax. 8 I. R. R. 71. There is a process of producing sparkling wine by mixing with a still wine sugar, with or without a syrup, commonly of spirits, which mixture results in the evolution of carbonic acid gas, and this gas produces the ap- pearance and eflFect which constitutes the sparkle of the wine, and makes the wine a sparkling or champagne wine. The sparkle may also be pro- duced directly and immediately by the infusion into the wine or mixture of wine of carbonic acid gas. This latter process produces what is called an imitation of sparkling wine. 7 1. R. R. 106. Bitters prepared as an imitation wine must be put up according to this section. 10 I. R. R. 166. Supervisors of Internal Revenue. [Sec. 49. Quiy 20, 1868.) And he it further enaGted,Th.Sbt the Sec- retary of the Treasury, on the recommendation of the Commis- sioner of Internal Revenue, may appoint not exceeding twenty- five officers, to be called supervisors of internal revenue, each one of whom shall be assigned to a designated territorial district to KTJLINGS, DECISIONS, ETC. 199 be composed of one or more judicial districts and territories, and shall keep his office at some convenient place in his district to be designated by the Commissioner, and shall receive in ad- dition to expenses necessarily incurred by him and allowed and certified by the said Commissioner, as a compensation for his .services, such salary as the Commissioner of Internal Revenue may deem just and reasonable, not exceeding three thousand dollars per annum. It shall be the duty of every supervisor of internal revenue, under the direction of the Commissioner, to see that all laws and regulations relating to the collection of internal taxes are faithfully^executed and complied with ; to aid in the preven- tion, detection, and punishment, of any frauds in relation thereto, and to examine into the efficiency and conduct of all officers of internal revenue within his district ; and for such purposes he shall have power to examine all persons, books, papers, accounts, and premises, and to administer oaths and to summon any person to produce books and papers, or to appear and testify under oath before him, and to compel a compliance with such summons in the same manner as assessors may do. It shall be the duty of every supervisor of internal revenue as aforesaid to report in writing to the Commissioner of Inter- nal Revenue any neglect of duty, incompetency, delinquency, or malfeasance in office, of any internal revenue officer within his district of which he may obtain knowledge, with a state- ment of all the facts in each case, and any evidence sustaining the same ; and he shall have power to transfer any inspector, ganger, or storekeeper, from one distillery or other place of duty to another, or from one collection district to another, within his district, and may, by notice in writing, suspend from duty any such inspector, ganger, or storekeeper, and in case of suspension shall immediately notify the collector of the proper district and the Commissioner of Internal Revenue, and within three days thereafter make report of his action, and his reasons therefor, in writing, to said Commissioner, who shall thereupon take such further action as he may deem proper.] The form of the summons to be issued and the mode of enforcing obe- dience to the same is similar to that used and practiced by assessors. Per- ry V. Newcome, 10 I. E. R. 30 ; In re Meador & Brother, 10 I. R. R. 74 ; s. 0. 3 A. L. T. (C. R.) 140 ; Stannard «. Green et. al. 11 I. R. R. 134 ; s. c. 3 • A. L. T. (C. R.) 133. Supervisors, detectives, and surveyors of distilleries should make out their bills for compensation and expenses monthly. In each case a clearly and carefully defined and itemized statement of eveiy expenditure, under its proper date, must be made out, and except for fair by railroad, or 200 U. S. INTBRKAL EBVEIfUE LAWS. other public conveyance, and for meals while travelling, must be accom- panied by receipted bills as vouchers. Hotel bills must be in detail, stat- ing the number of days paid for, and the price per day. Charges for wash- ing will not be allowed. Surveyors of distilleries must state the name and location of distilleries^ Surveyed ; the time employed in making each survey, its computations and reports, and in travelling to and from the distillery. As a general rule, more than two days' time, in each case, will not be allowed for the per- formance of the duties in making a survey of a single distillery. Each account must be sworn to that the account is just and true in all respects ; that the services were actually rendered ; that the distances charged were actually travelled at the dates therein specified ; that none of such distances were travelled under any free pass on any railroad, steam- boat, or other conveyance ; and that the expenses charged thereife were actually paid, and were necessary for the proper discharge of the official duties of the officer. 11 I. R. R. 84. Appointment of Detectives. [Sec. 50. (July 20, ises.) And he it further enacted, That the Commissioner of Internal Kevenae shall have power, whenever in his judgment the necessities of the service may require, to em- ploy competent detectives, not exceeding twenty-five in number at any one time, to be paid under the provisions of the seventh section of the " Act to amend existing laws relating to internal revenue, and for other purposes," approved March 2, 1867, and he may, at his discretion, assign any such detective to duty under the direction of any supervisor of internal revenue, or to such other special duty as he may deem necessary, and that from and after the passage of this act no general or special agent, or inspector, by whatever name or designation he may be known, of the Treasury Department in connection with the internal revenue, except inspectors of tobacco, snuff, and cigars, and except as provided for in this act, shall be appointed, com- missioned, employed, or continued in ofiiee, and the term of office or employment of all such general or special agents or inspectors now authorized as aforesaid under employment at tlje time of the passage of this act shall expire ten days after this act shall take effect.] Suspension of Collectors and Assessors for Fraud. [Sec. 51. ffuiy 20, 1868.) Andie it further enacted, That from and after the passage of of this act no assessor or collector shall be detailed or authorized to discharge any duty imposed by law on any other collector or assessor, but a supervisor of internal revenue may, within his territorial district, suspend any col- leqtor or assessor for fraud, or gross neglect of duty, or abuse of power, and shall immediately report his action to the Com- missioner of Internal Revenue, with his reasons therefor in writing, who shall thereupon take such further action as he may deem proper.] BULINGS, DECISIONS, ETC. 201 Duties of Storekeepers. [Sec. 52. (Juiy 20, ises.) And he it further enacted, That there shall be appointed by the Secretary of the Treasury such number of internal revenue storekeepers (a) as may be necessary, the com- pensation of each of whom shall be determined by the Commis- sioner of Internal Revenue, not exceeding five dollars per day, to be paid by the United States, one or more of whom shall be assigned by the Commissioner of Internal Kevenue to every bonded or distillery warehouse established by law ; and no such storekeeper shall be engaged in any other business while in the servi(*e of the United States without the written permission of the Commissioner 6f Internal Eevenue. Every storekeeper shall take an oath faithfully to perform the duties of his office, and shall give a bond, to be approved by the Commissioner of Internal Revenue, for the faithful discharge of his duties, in such form and for such amount as the Commissioner may pre- scribe. Every storekeeper shall have charge of the warehouse to which he may be assigned, under the direction of the col- lector controlling the same, which warehouse shall be in the joint custody of such storekeeper and the proprietor thereof, and kept securely locked, and shall at no time be unlocked and opened, or remain open, unless in the presence of such store- keeper or other person who may be designated to act for him as hereinafter provided ; and no articles shall be received in or delivered from such warehouse except on an order or permit addressed to the storekeeper, and signed by the collector hav- ing control of the warehouse. Every storekeeper shall keep a warehouse book, which shall at all times be open to the exam- ination of any revenue officer, in which he shall enter an ac- count of all articles deposited in the warehouse to which he is assigned, indicating in each case the date of the deposit, by whom manufactured or produced, the number and description of the packages and contents, the quantities therein, the marks and serial numbers thereon, and by whom gauged, inspected, or weighed, and, if distilled spirits, the number of gauge or wine gallons and of proof gallons ; and before delivering any article from the warehouse, he shall enter in said book the date of the permit or order of the collector for the delivery of such articles, the number and description of the packages, the marks and serial numbers thereon, the date of delivery, to whom delivered, and for what purpose, which purpose shall be specified in the permit or order for delivery ; and in case of delivery of any distilled spirits, the number of gauge or wine gallons, and of proof gallons, shall also be stated; and such further particulars shall be entered in the warehouse books as may be prescribed or found necessary for the identification of the packages, to in- sure the correct delivery thereof, and proper accountability thereof [therefor]. 202 U. S. INTERNAL REVENUE LAWS. A daily return shall be furnished by every storekeeper to the collector of the district of all articles received in and de- livered from the vrarehotise during the day preceding that on which the return is made, a copy of which shall be mailed by him at the same time to the Commissioner of Internal Rev- enue ; and each storekeeper shall, on the first Monday of every month, make a report in triplicate of the number of packages of all articles, with the several descriptions thereof respectively, as above provided, which remained in the warehouse at the date of his last report, and of all articles received therein and delivered therefrom during the preceding month, and q£ all articles remaining therein at the end of Said month ; one of which reports shall be by him delivered to the assessor of the district, to be recorded and filed in his ofiice ; one delivered to the collector having control of the warehouse, to be recorded and filed in his office ; and one transmitted to the Commis- sioner of Internal Kevenue, to be recorded and filed in his office. Any internal revenue storekeeper may be transferred by the supervisor of the district or by the Commissioner of In- ternal Revenue from one warehouse to any other. In case of the absence of any intei'nal reveuue storekeeper by sickness or from any other cause, the collector having control of the ware- house may designate a person to have temporary charge of such warehouse, who shall, during such absence, perform the duties and receive the pay of the storekeeper for the time he may be so employed ; and for any violation of the law he shall be sub- ject to the same punishment as storekeepers. Any storekeeper or other person in the employment of the United States hav- ing charge of a bonded warehouse, who shall remove or allow to be removed any cask or other package therefrom without an order- or permit of the collector, or which has not been marked or stamped in the manner required by law, or shall remove or allow to be removed any part of the contents of any cask or package deposited therein, shall be immediately dismissed from office or employment, and, on conviction, be fined not less than five hundred dollars nor more than two thousand dollars, and imprisoned not less than three months nor more than two years.] (a) The storekeeper will keep the warehouse book on Form 101, and make daily returns in duplicate to the collector and Commissioner, and triplicate monthly reports to the Commissioner, the collector, and the assessor; and will also keep the books requu-ed by section 31, on Form 100. The books must be furnished to the storekeeper by the distiller. 9 I. K. R. 150. No material must be received upon the distillery premises, nor be allowed to be stored in the distillery building, without the storekeeper's personal knowledge, and without his recording the same in the appropri- EULINGS, DECISIONS, ETC. 203 ate book of accounts. The ^absence of scales or facilities for determining the weight and measure will not be received as a sufficient excuse for not performing this duty, unless the official files shall show that the storekeeper has reported their absence, and taken all reasonable steps to have them furnished. No material must be allowed by him to be put in the mash- tubs until he has ascertained and recorded its weight and measure. He should, from time time, test the accuracy of the scales set for weighing off the meal put into the mash-tub, and any want of accuracy should be im- mediately reported to the collector. He should also carefully note the character and condition of the distillery apparatus, and report at once any condition of the apparatus not in accordance with requirements. He is required to record the hour and minute when the beer is set in the fermenting tubs, to measure the dry inches, and calculate the quantity in each tub at that time and at 13, noon, on each day thereafter, and enter the s^me in his book. He must, also, see that the tubs are not emp- tied before the end of the fermenting period fixed by the distiller, and, when emptied, that they remain empty the full 34 hours required by law ; and any irregularity on the part of the distiller, in either of these respects, must be fonthwith reported to the collector and Commissioner. He has charge of, and is held responsible for, the care of spirits depos- ited in the warehouse while under his charge, and will not allow any person access thereto, except when necessary, and in his presence. The distiller and his employees will be allowed access to the warehouse for the purpose of examining the spirits, repairing the cooperage, or changing the packages to prevent waste. These things, when necessary, must be •done under the immediate supervision of the storekeeper. He is to note carefully each package of spirits received into or taken out of the warehouse, making entry on his books of the serial number of the package, the serial number of the warehouse stamp, and the wine and proof gallons as per the actual inspection in gallons and fractions of gal- lons, and make daily report of the same, on Form 86. The same report of actual inspection, or of gallons and fractions of gallons, and not of taxable gallons, should be made in the monthly ware- house report. Form 87, and the storekeeper's monthly report, Form 88, care being taken, in all cases where required, that the serial number of the package and serial number of the warehouse stamps are given, and in no ■case will the serial number of the tax-paid stamp be reported. Storekeepers must make a daily report (Sundays excepted), on Form 86, during all the time they are in charge of the distillery warehouse, whether any spirits are entefed into or withdrawn from the warehouse or not, and in no case must the transactions of more than one day appear on Form 86. If the distilleiy shall be permanently closed, the storekeeper will continue to make a daily report until all the spirits are withdrawn from the warehouse. The monthly return. Form 87, must show the quantity of spirits in warehouse on the first day of the month, the quantity entered and with- drawn during the month (which will, of course, agree with the footings on his warehouse book and the aggregate of his daily reports), and the quantity in warehouse on the last day of the month, after the close of bus- iness for that day. In making the monthly abstracts, Form 88, storekeepers will enter, first, the amount of mash on hand at the close of the preceding month ; under this they will enter the quantity of material used during the month, with the quantity of mash produced therefrom ; and from the amount of these two items deduct the quantity of mash on hand at the end of the month. All spirits should be drawn from the receiving cisterns after distilla- 204 U. S. INTEENAIi REVENUE I^AWS. tion ceases, on the last day of the month, or on the morning of the first day of the month, so that the full product of the month may be known and determined. If drawn off on the first day of the month, the qua,ntity drawn off and warehoused on that day will be entered on the distiller's tri-monthly return, the storekeeper's abstract, Form 88, and on Form 89, in a separate item. Each return must contain the name of the distiller, the number of the distillery, district, and State, and be signed by the storekeeper, with his post-office address, and properly endorsed on the back. The quantity of mash in a tub at the time it is emptied is not the subject of an estimate, but is to be determined by actual measurement ; and the quantity made and used during the month, or on hand at its close, can and must be determined in the same way. Storekeepers will make the several reports required of them for the whole time they are on duty, whether the distillery is in op^eration or not. Collectors are required to report to the Office of Internal Revenue the day on which each storekeeper in that district enters upon actual duty, and the day on which he ceases to do duty under his assignmept, and the storekeeper will be paid accordingly. Where a distillery is under suspen- sion and all spirits vpithdrawn from the warehouse, the storekeeper will report to the collector the fact of the withdrawal of the last of the spirits,- on the day on which it occurs, and he will be considered as relieved from duty after that day. Whenever the assignment of a storekeeper is re- voked, his account for that month must bear the endorsement of the collector, showing the date on which the revocation was delivered to the storekeeper. 10 I. R. R. 185. The collector may order the storekeeper under assignment to duty, on Sundays or Simday nights, as the case may be, and in each case the storekeeper is expected to remain on duty, at his post, during the hours of his assignment, and will be entitled to receive the compensation allowed, the same as for other days and nights. 11 I. R. R. 43. Storekeepers are not entitled to compensation until assigned to duty, at a warehouse, by the Commissioner ; after their assignment, they will be entitled to the rate of compensation fixed in their assignment, for the time during which they are actually employed. Where, during the temporary absence of the regular storekeeper, the collector designates some person to act for him, the person so designated will be entitled to the same rate of compensation as the regular storekeeper, for the time he is so employed; and the regular storekeepenvill not be entitled to com- pensation for such time. The provision forbidding storekeepers to engage in any other business does not apply to a storekeeper who is not under actual assignment for duty. Whenever work is suspended or resumed in a distillery, the assessor will notify the storekeeper ; and where such suspension is fur an indefinite time, or for a period exceeding one week, the assessor will immediately report the fact to the Office of Internal Revenue, and whether or not the services of the storekeeper can be dispensed with. This must be in a separate report. 9 I. R. R. 150. The fact that spirits are in bond calls for a day-storekeeper at least, whether the distillery is running or not, and he must be paid the same as if the distillery was running. , 13 I. R. R. 5. The bills of storekeepers must be made out in triplicate, on Form 107, with all the blanks properly filled, and should be scheduled, on Form 56. Separate bills should be rendered for the time served at each warehouse, when the storekeeper has been assigned to more than one warehouse in a month. Whenever an assignment of a storekeeper is revoked, the collector BULIN&S, DECISIOKS, ETC. 205 must endorae, on the bill, the date on which his seryices ceased, 11 I. R. E. 83. Payment of Salaries and Expenses of Storekeepers. [Sec. 1. March 29, 1869.) Provided further, That after the pas sage of this act the proprietors of all internal revenue bonded warehouses shall reimburse to the United States the expenses and salary of all storekeepers or other officers in charge of such warehouses, and the same shall be paid into the treasury and accounted for like other public moneys.] Collection of Salaries and Expenses of Storekeepers. [Sec. 1. auiyi2.i87o.) Provided, That after the passage of this act, the proprietors of all internal revenue bonded warehouses shall pay to the collector the current expenses and salaries of storekeepers or other ofiicers in charge of such ware- houses; and the same, when not paid, may be collected by the same means provided for the collection of other taxes ; and all sums so collected in the nature of reimbursements {a) to the United States for payments on account of expenses and salaries of storekeepers or other officers in charge of such warehouses, or that may hereafter be so collected, shall be carried to the credit of the appropriation for salaries and expenses of collectors, , storekeepers, and so forth ; and the Commissioner of Internal Revenue and the accounting officers of the treasury are hereby authorized and directed to take the necessary steps to carry, this proviso into effect : And provided further, That the President may, at his discretion, divide the States and Territo- ries respectively into convenient collection districts, or alter the same, or unite two or more districts or two or more States or Territories into one district, and may exercise said power from time to time as in his opinion the public interest may require.] (a) The sureties upon a distiller's bond, who executed the same before the passage of this act, are not liable for a failure on the part of the prin- cipal to reimburse to the government the salary and expenses of a store- keeper placed in charge of his distillery. It was not within the contem- plation of the sureties that their principal would be required to refund money which the government, by the law existing at the time of the exe- cution of the bond, was obliged to pay. If it were otherwise, there would be no limit to the responsibility that might in this manner be cast upon a surety. U. S. v. Singer et al. 18 Pitts. L. J. 5. Collectors ^ould demand and collect, monthly, from owners of bonded warehouses situated in their districts, such sum as may have been paid to storekeepers, or other officers in charge of such warehouses, for salary and other expenses, and deposit the same to the credit of the Treasurer of the United States. The appropriation should be named on the face of the 206 tr. S. INTEKKAL REVENUE LAWS. certificate of deposit. The certificate of the assistant treasurer,_or desig- nated depository, as the case may be, will be taken in triplicate, the original of which will be forwarded direct to the Secretary of the Treas- ury, the duplicate filed in the Office of Internal Revenue with Form 119, and the triplicate retained for their own protection. Storekeepers will be mquired to sign triplicate vouchers, the original and duplicate to be dis- posed of as required by existing regulations, and the triplicate to be presented to the owner of the bonded warehouse, with demand for reim- bursement ; and surrendered and receipted in his favor, when the amount thereof shall have been reimbui-sed to the United States. The amount of the reimbursement thus made will be entered to the credit of the United States, in a separate account current, upon Form 119. This account cur- rent will be supported by the duplicate certificate of deposit, and will be mailed to the Office of Internal Revenue within fifteen days after the close of the month in which the reimbursement and deposit may have been made. 9 I. R. R. 150. Internal Revenue Gangers. [Sec. 53. (July 20, 1868.) And he it further enacted, That there shall be appointed by the Secretary of the Treasury, in every col- lection district where the same may be necessarj'', one or more internal revenue gaugers (a) who shall each take an oath faithfully to perform his duties, and shall give his bond, with one or more sureties satisfactory to the Commissioner of Internal Revenue,, for the faithful discharge of the duties assigned to him by law or regulations ; and the penal sum of said bond shall not be less than five thousand dollars, and said bond shall be renewed or strengthened as the Commissioner of Internal Kevenue may require. The duties of every such ganger shall be performed under the supervision and direction of the collector of the district to which he may be assigned, or of the collector in charge of exports at any port of entry to which he may be as- signed. Fees for gauging and inspecting shall be prescribed by the Commissioner of Internal Revenue, to be paid to the collector by the owner or producer of the articles to be gauged 'and inspected ; and said collector shall retain all amounts so received as such fees until the last day of each month, when the aggregate amount of fees so paid that month shall, under regulation to be prescribed by the Commissioner of Internal Revenue, be paid to the ganger or gaugers performing the duty. In no case, however, shall the aggregate monthly fees of any gauger exceed the rate of three thousand dollars per an- num. All necessary labor and expense attending the gauging of any article shall be borne by the owner or producer of such articles. Every gauger shall, under such regulations as may be prescribed by the Commissioner of Internal Revenue, make a daily return, in duplicate ; one to be delivered to the assessor, and the other to the collector of his district,, giving a true ac- count, in detail, of all articles gauged and proved or inspected BULINGS, DECISIONS, ETC. 207 by Mm, and for whom, and the number and kind of stamps used by him. Any ganger who shall make any false or fraud- ulent inspection, gauging, or proof, shall pay a penalty of one thousand dollars, and, on conviction, shall be fined not less than five hundred dollars nor more than five thousand dollars, and imprisoned not less than three months nor more than three years.] (a) No gauger can be appointed a storekeeper, nor can he deputize or allow another person to act for him. The fees for gauging are to be col- lected by the collector of the district; and on the first day of each month he will pay to each gauger the amount of fees due him, for the work done during the preceding month, not exceeding, however, $350 in aqy month. The accounts of the gangers are to be settled, and closed, montlily. It was not intended that money earned by one gauger should be given to another, who did not earn so much ; nor, if a ganger's fees amount to more than |350, in any one month, can the balance be carried forward and paid to him in any succeeding month, when the aggregate fees for the month do not amount to that sum. The collector may require prepayment of the fees before issuing the order to the gauger to gauge and inspect. This may not be practicable in the case of inspection at the distillery, as the number of packages can- not be precisely known until they are filled from the cistern ; but in such cases, prepayment will not generally be necessary in order to secure the fees; but in other cases, the number of packages may be known before the order for gauging is given. But whether this or any other course is pur- sued for collection of gauging fees, the collector is required to receive and retain all amounts, received as such fees, until paid to the gaugers. The collector will report, monthly, to the Office of Internal Revenue, the amount of fees collected by him during the month ; the amounts paid to the several gangers, accompanied by the receipt of each gauger for the amount paid him, and the balance in his hands on the last day of the month. The balance must be deposited to the credit of the Treasurer of the United States, with the general collections, and be reported on Form 51, in an item by itself, the same as the monthly list ; and, on Form 33, using a new number, 168. The collector should charge himself with the balance thus deposited and reported, on his quarterly account. Form 79. From the daily returns of the gaugers, on Form 59, the assessor wiU transmit, monthly, to the Office of Internal Revenue, a consolidated report^ showing the number of packages gauged, and the fees earned by each gauger during the month. Both reports, from the collector and the assess- or, must be made promptly at the end of each month. Whenever it is found that the amount received by the collector, for gaugers' fees, exceeds the amount paid, the collector should make a specific report of the fact, to the Commissioner, and recommend such change in the rate of fees as wiU bring the receipts, as near as possible, to balance the expenditures. 9 I. R.R. 153. The labor of handling and moving barrels or packages, and the cost of branding irons, furnaces, brushes, paste, and varnish, used in marking and stamping, are to be borne by the owner or producer. Each distiller should keep the articles named on hand. Travelling expenses are not included, and gaugers cannot collect them as part of the expense of gauging. 9 I R. R. 156. 208 U. S. INTEENAL KEVBNUE LAWS. Drawback on Alcohol and Rum. [Sec. 5i. Quiy 20, ises.) And he it further enacted, That a draw- back (a) shall be allowed upon alcohol and rum exported to foreign countries on which taxes have been paid under the pro- visions of this act when exported as herein provided for. The drawback allowed shall include the taxes levied and paid upon the alcohol or rum exported, not, however, exceeding sixty cents per gallon proof spirits, which shall be due and payable only after the proper entries and bonds have been executed and filed, and all other conditions complied with as hereinafter re- quired, and thirty days after the vessel has actually cleared and sailed on her voyage with such spirits on board ; and the Sec- retary of the Treasury shall prescribe such rules and regula- tions in relation thereto as may be necessary to secure the treasury of the United States against frauds. And if any per- son shall fraudulently claim or seek to obtain an allowance of drawback on any alcohol or rum, or shall fraudulently claim any greater allowance or drawback than the tax actually paid thereon, such person shall forfeit and pay to the government of the United States triple the amount ■ wrongfully afld fraudu- lently sought to be obtained, and, on conviction, shall be im- prisoned not less than one year nor more than ten years. And any owner, agent, or master, of any vessel who shall knowingly aid or abet in the fraudulent collection or fraudulent attempt to collect any drawback upon rum or alcohol, or shall know- ingly aid or permit any fraudulent change in the spirits so shipped, shall, on conviction, be fined five thousand dollars and imprisoned not less than one year, and the ship or vessel on board of which such shipment was made, or pretended to be made, shall be forfeited to the United States, whether a conviction of the master or owner be had or otherwise, and proceedings may be had in admiralty by libel for such for- feiture.] (a) The allowance of drawback is limited to alcohol and rum ; and no drawback is to be allowed, except upon the articles of alcohol and rum as known to commerce. AH exportations of alcohol, to be entitled to drawback, must be in quantities not less than two thousand gallons, and in casks actually containing not less than thirty gauge or wine gallons. Eum can only be exported, with privilege of drawback, in quantities not less than thirty gauge or wine gallons each ; and drawback will be allowed only on the basis and number of proof gallons actually exported. 8 I. E. R. 41. For regulations, see 8 I. R. R. 41. The exporter is not entitled to drawback when the character of the article has been changed after the payment of the tax thereon, or when it is not shipped in the original casks in which it was delivered from the distillery warehouse. 10 I. R. R. 170. The forging and altering of a bond, in a custom house, established BUIilNGS, BEOISIOKS, ETC. 209 since March 3, 1835, cannot be punished otherwise than is provided for in this section. U. S. v. Barney et al. 3 I. E. R. 46 ; s. c. 5 Blatch. 394. Kegnlations for Exportation oif Alcohol and Kuin. [Sec. 65. a^iy ^o. «868.) And he it further enacted, That alcohol and rum may be exported with the privilege of drawback, in quantities not less than two thousand gallons, and im packages containing not less than thirty gallons each, on application of the » owner thereof to the collector of customs at any port of entry, and under such rules and regulations, and after making such entries, and executing such bonds, and giving such other addi- * tional security, as may be prescribed by law and by the Secre- tary of the Treasury. The entry for such exportation shall be in triplicate, and shall contain the name of the person applying to export, the name of the distiller," and of the district in which the spirits were distilled, and the name of the vessel by which, and the name of the port to which, they are to be exported ; and the form of the entry shall be as follows : Export entry of distilled spirits entitled to drawback. Entry of spirits distilled by , in dis- trict, State of , to b,e exported by ■ in the , whereof is master, bound to . And the entry shall specify the whole number of casks or packages, the marks and serial numbers thereon, the quality or kind of spirits as known in commerce, the number of gauge or wine gallons and of proof gallons ; and amount of the tax on such spirits shall be verified by the oath or affirmation of the owner of the spirits, and that the tax has been paid thereon, and that they are truly intended to be exported to the port of , and not to be relanded within the limits of the United States ; and said owner shall give his bond executed in dupli- cate, with one or more sureties satisfactory to said collector, conditioned that the principal named in said bond will export the spirits as specified in said entry to the port of , and that the same shall not be landed within the jurisdiction of the United States. The penal sum named in said bond shall be equal to not less than double the amount of the drawback on such spirits. For the discharge of any such export bond the same time shall be allowed, and the same certificates of landing and other evidence shall be required, as is or may be provided and required for iiiiported merchandise exported from the United States, that the said spirits have been landed at the port named, or at any other port, beyond the jurisdiction of the United States. One bill of lading, duly signed by the master of the vessel, shall be deposited with said collector, to 14 210 V. S. INTEEKAL EBVB^irUE LAWS. be filed at his office with the entry retained by him ; one of , said entries shall be, when the shipment is completed, trans- mitted, with the duplicate of the bond, to the Secretary of the Treasury, to be recorded and filed in his office. The lading on board said vessel shall be only after the receipt of an order or permit signed by the collector of customs and directed to a customs ganger, and after each cask or package shall have been distinctly marked or branded, by said gauger, as follows : " For export from U. S. A." The casks or packages shall be inspected and gauged alongside of or on the vessel, by the gauger designated by said collector, under such rules and regulations as the Secretary of the Treasury may prescribe ; and on application of the said collector, it shall be the duty of the surveyor of the port to designate and direct one of the cus- tom-house inspectors to superintend such shipment.* The gauger, as aforesaid, shall make a full return of such inspecting and gauging, certifying thereon that the shipment has been made, in his presence, on board the vessel named in the entry for export, which return shall be indorsed by said ciistom- house inspector, certifying that the casks or packages have been shipped under his supervision on board said vessel ; and the said inspector shall make a similar certificate to the surveyor of the port, indorsed on, or to be attached to, the entry in pos- session of the custom-house : Provided, however, That no claim for drawback shall be allowed on either Of the said articles which shall have been exported as aforesaid prior to the time at which this act shall take efiiect.] Withdrawal of Spirits from Bonded Warehouse. [Sec. 56. juiy 20, ises.) Andhe it further enacted,^\ia,t2ii\.^\%- tilled spirits in any bonded warehouse shall within nine months after the passage of this act be withdrawn from such warehouse, and the taxes paid on the same ; and the casks or packages con- taining said spirits shall be marked and stamped, and be subject in all respects to the same requirements as if manufactured after the passage of this act. And any distilled spirits remain- ing in any bonded warehouse for a period of more than nine months after the passage of this act shall be forfeited to the United States, and shall be sold or disposed of for the benefit of the same in such manner as shall be prescribed by the Com- missioner of Internal Revenue, under the direction of the Sec- retary of the Treasury. And whenever in the opinion of the Commissioner of Internal Eeveuue any distillery or other warehouse shall become unsafe or unfit for use, or the mer- chandise therein shall for, any reason be liable to loss or great wastage, the Commissioner may discontinue such warehouse, EULIKGS, DBCISIOIJS, ETC. 211 and require that the merchandise therein shall be transferred to such other warehouse as may be designated bv him withm such time as he shall prescribe. Such transfer shall be made under the supervision of the collector, or such other otiicer as may be -designated by the Commissioner ; and the expense thereof shall be paid by the owner of the merchandise ; and it the owner of such merchandise shall fail to make such transter within the time prescribed, or to pay the just and proper ex- pense of such transfer, as ascertained and determined by the Commissioner, such merchandise may be seized and sold by the collector, in the same manner as goods are sold upon dis- traint for taxes, andthe proceeds of such sale shall be applied to the payment of the taxes due thereon, and the costs and ex- penses of such sale and removal, and the balance paid over to the owner of such merchandise.] Extension of Time for Withdrawal. [Sbo. 1. (April 10,1869.) That section fifty-six be amended so as to extend the time for withdrawing distilled spirits from bonded warehouse until the thirtieth of June, eighteen hundred and sixty-nine, but subject to an additional tax on each proof gallon deposited and bonded in warehouse at the rate of one cent for each month after the twentieth of April, eighteen hundred and sixty-nine, and until withdrawn ; and an;^ distilled spirits re- maining in bonded warehouse after the thirtieth day of June, eighteen hundred and sixty-nine, shall be forfeited to the United States and disposed of as provided in said section.] Stamping of Stock on Hand. [Sec. 57. Ouiy 20, ises.) And le it further enacted, That any per- son owning, or having in his possession, any distilled spirits in- tended for sale, exceeding in quantity fifty gallons, and not in a bonded warehouse at the time when this act takes efiect, shall immediately make a return, under oath, to the collector of the district wherein such spirits may be held, stating the number and kind of packages, together with the marks and brands there- on, and the place where the same are stored, together with the quantity of spirits, as nearly as the owner can determine the same. Upon the receipt of such return the collector, being first satisfied that the tax on said spirits has been paid, shall immediately cause the same to be gauged and proved by an in- ternal revenue ganger, who shall mark, by cutting, the con- tents and proof on each cask or package containing five wine gallons or more, and shall afiix and cancel an engraved stamp thereon, which stamp shall be as follows : 212 U, S. IKTERKAL KBVENUE LAWS. Stamp for stock on hand. ISTo. Issued by Collector of district, State of ■ Distilled spirits. Tax paid prior to (here engrave the date when this act takes effect). proof gallons. Gauged , 18—. , Gaxiger. All distilled spirits owned or held by any person, as afore- said, shall be included in the same return, and the gauging shall be contimious until all the spirits owned or held by such person are gauged and stamped, as aforesaid, and a report thereof in duplicate shall immediately be made by the ganger to the collector and assessor of the district, showing the num- ber of packages, contents, and proof, of each package gauged and stamped ; and one of said reports shall be transmitted by the collector to the Commissioner of Internal Revenue. No such spii'its shall be gauged or stamped in any cistern or other stationary vessel. Any person owning or having in possession such spirits, and refusing or neglecting to make such return, shall forfeit the same ; and all distilled spirits, found after thirty days from the tinae this act takes effect, in any cask or package containing more than five gallons (a), without having thereon each mark and stamp required therefor by this act, shall be forfeited to the United States. Any person who shall gauge, mark, or stamp, any cask or package of distilled spirits under the provisions of this section, or who shall cause or pro- cure the same to be done, knowing that the same were manu- factured or removed from warehouse subsequent to the taking effect of this act, or that the taxes thereon have not been paid, shall, on conviction, be fined not less than five hundred dollars nor more than five thousand dollars, and imprisoned not ^ess than six months nor more than three years. All stamps re- .quired by this section shall be prepared, issued, and aflSxed upon casks and packages and cancelled in the same manner as provided for other stamps for distilled spirits in this act, and shall be changed at the rate of twenty-five cents for each (Stamp.] (ff) Nopackage of spirits containing less than five proof gallons, whatever ■may be the number of wine gallons, is required to be stamped, unless the spirits are compounded in such a. manner as that the compound will not admit of its strength being ascertained by the hydrometer, when five wine gallons •will be taken to be five proof gallons. 11 I. R. R. 113 ; 10 I. B. B. 97. The limitation, " found after thirty days from the time this act takes EULINGS, DECISIONS, ETC. 213 effect," shows that the spirits referred to are those which were on hand, and which were not in a bonded warehouse at the time the act took effect. These spirits the owner is allowed thiity days to have marked and stamped ; besides, although the language of this provision is somewhat general, and might be applied to all distilled spirits literally, the connec- tion in which it is found limits its application to the' spirits mentioned in the section. As to distilled spirits generally, other sections of the statute must be consulted to ascertain the duties of distillers and others respect- ing them, and the forfeitures denounced agaipst them. This section is confined by its spirit, and terms, to spirits intended for sale, on hand when the act took effect, and not in a bonded warehouse. U. S. v. 37 Bbls. H I. R. R. 135. Sale of Forfeited Spirits. [Sec. 58. (July 20, ises.) And he it further enacted, ThsA all dia- tilled spirits forfeited to the United States, sold by order of court or under process of distraint, shall be sold subject to tax (a) ; and the purchaser shall immediately, and before he takes possession of said spirits, pay the tax thereon. And any distilled spirits condemned before the passage of this act, and in the possession of the United States, shall be sold as herein provided. And if any tax-paid stamps are aflSxed to any cask or package so condemned, such stamps shall be obliterated and destroyed by the collector or marshal after forfeiture and before such sale.] (a) When a sale is made by the marshal, he will require the purchaser, before receiving possession of the spirits, to deliver to him the receipt of the collector of the district in which the sale is made, for the tax due upon the same, which receipt will be executed on Form 105. The pur- chaser, in order to. obtain the receipt, will deliver to the collector a statement, to be signed by the United States marshal, giving the number of packages, the number of wine and proof gallons in each, with the date of sale, and the name of the purchaser ; and the collector will issue, for every such cask or package, a tax-paid stamp, and cause the same to be afilxed thereto. Upon the face of the receipt, Form 105, the collector wiU indorse the words " Tax-paid stamps issued," and upon the stamp " Tax on spirits sold by the United States marshal," with the date of the sale.t Before the delivery of any 'spirits so sold, to the purchaser, the marshal will mark with a stencil plate, or brand with a branding iron, each cask or package, with his name, and official title, together with the date and place of sale, and the words "tax paid," and the number of proof gallons, with the name of the ganger who guaged the same, and the date of gauging. The stamp, brand, or mark, which may be upon the barrels, at the time the spirits are condemned, is to be removed, or obliterated, except the tax-paid stamp, and the new tax-paid stamp, and mark of the mar- shal, should be so placed as not to cover, or deface, any of such stamps marks, or brands. 10 I. R. R. 84. 214 V. S. INTBKNAIi EEVENTJB LAWS. Special Taxes. [Sec. 59. (luiy 20, mb -, as amended April lo, 1869, § i.) And be it further enacted, That the following special taxes shall be, and are hereby, imposed ; that is to say : Distillers producing one hundred barrels or less of distilled spirits, counting forty gallons of proof spirits to the barrel, within the year, shall each pay four hundred dollars ; and if producing more than one hundred barrels, shall pay in addition four dollars for each such barrel produced in excess of one hun- dred barrels. And monthly returns of the number of barrels of spirits, as before described, distilled by him, shall be made by each distiller in the same manner as monthly returns of sales are made. Every person (a) who produces distilled spirits, or who brews or makes mash, wort, or wash, fit for distillation or for the production of spirits, or who by any process of evap- orization separates alcoholic spirit from any fermented sub- stance, or who, making or keeping mash, wort, or wash, has also in his possession or use a still, shall be regarded as a dis- tiller : Provided, That a like tax of four dollars on each bar- rel, counting forty gallons of proof spirits to the barrel, shall be assessed and collected from the owner of any distilled spirits which may be in any bonded warehouse at the date of the taking effect of this act, to be paid whenever the same shall be withdrawn from such warehouse, under the provisions of the sixty-second section of this act : Provided, That no tax shall be imposed for any still, stills, or other apparatus, used by drug- gists and chemists for the recovery of alcohol for pharma- ceutical and chemical or scientific purposes, which has been used in those processes. Rectifiers (J) of distilled spirits, rectifying, purifying, or refining, two hundred barrels or less of distilled spirits, count- ing forty gallons of proof spirits to the barrel, within the year, shall each pay two hundred dollars, and shall pay fifty cents for each such barrel produced in excess of two himdred barrels. And monthly returns of the quantity and proof of all the spirits purchased and of the number of barrels of spirits, as before de- scribed, rectified, purified, or refined by him, shall be made by each rectifier in the same manner as monthly returns of sales are made. Every person who rectifies, purifies, or refines dis- tilled spirits or wines by any process, and every wholesale or retail liquor dealer or compounder of liquors who has in his possession any still or leach tub, or who shall keep any other apparatus for the purpose of refining in any manner distilled spirits, shall be regarded as a rectifier. Compounders of liquors shall each pay twenty-five dollars. Every person who, without rectifying, purifying, or refining distilled spirits, shall, by mixing such spirits, wine, or other EULINGS, BBOISIONS, ETC, 215 liquor with any materials, manufacture any spurious, imitation, or compound liquors,' for sale under the name of whiskey, brandy, gin, rum, wine, spirits, cordials, or wine bitters, or any other name, shall be regarded as a compounder of liquors. [On and after the first day of May, eighteen hundred and sixty-nine, every person who rectifies, purifies, 6r refines dis- tilled spirits or wines by any process othfer than by original and continuous distillation from mash, wort, or wash, through con- tinuous closed vessels and pipes, until the manufacture thereof is complete, and every wholesale or retail liquor dealer who has in his possession any still or leach tub, or who shall keep any other apparatus for the purpose of refining in any manner distilled spirits, and every person who, without rectifying, pu- rifying, or refining distilled spirits, shall, by mixing such spirits, wine, or other liquor, with any materials, manufacture any spurious, imitation, or compound liquors, for sale, under the name of whiskey, brandy, gin, rum, wine, spirits, cordials, or wine bitters, or any other name, shall be regarded as a rectifier, and as being engaged in the business of rectifying ; and so much of the act, to which this is an amendment, as relates to' com- pounders of liquors, and as is inconsistent with the provisions of the section hereby amended, be, and the same are [is] here- by, repealed.] Retail dealers (e) in liquors shall pay twenty-five dollars. Every person who sells or offers for sale foreign or domestic distilled spirits, wines, or malt liquors, in less quantities than five gallons at the same time, shall be regarded as a retail deal- er in liquors. Wholesale liquor dealers shall each pay one hundred dollars. Every person who sells or offers for sale foreign or domestic dis- tilled spirits, wines, or malt liquors in quantities of not less than five gallons at the same time, shall be regarded as a wholesale liquor dealer. Dealers in liquors whose sales, including sales of all other mer- chandise, shall exceed twenty-five thousand dollars, shall each pay an additional tax at the rate of one dollar for every one hundred dollars of sales of hquors in excess of such twenty-five thousand dollars; and on every thousand dollars of sales of other merchandise shall pay at the same rate as a wholesale dealer; and such excess shall be returned, assessed, and paid in the same manner as required of wholesale"dealers. But no dis- tiller or brewer, who has paid his special tax as such, and who sells only distilled spirits or malt liquors of his own production, at the place of manufacture, in the original casks or packages to which the tax stamps are aflixed, shall be required to pay the special tax of awholesale dealer on account of such sales. Distillers of brandy from grapes, peaches, and apples, ex- clusively, producing less than one hundred and fifty barrels 216 tr. S. INTEKXAL EEVEilCrE LAWS. animally, shall pay a special tax of fifty dollars, and, in addi- tion thereto, the tax of four dollars per barrel of forty proof gallons. But the payment of any special tax imposed by this act shall not be held or construed to exempt any person carrying on any trade, business, or profession from any penalty or punishment therefor provided by "the laws of any' State; nor to authorize the commencement or continuance of any such trade, business, or profession, contrary to the laws of any State, or in places prohibited by municipal law ; nor shall the payment of any such tax be held or construed to prohibit or prevent any State from placing a duty or tax on the same trade, business, or pro- fession for State or other purposes. Manufacturers of stills shall each pay fifty dollars, and twenty dollars for each still or worm for distilling made by him. Any person who manufactures any still or worm to be used in distilling shall be deemed a manufacturer of stills. (a) It is not only the person or persons who carry on the actual work of manufacturing distilled spirits that are distillers, but all persons having an interest in the business of distilling, or directly aiding the production- of spirits for their use, or benefit, are considered distillers under the law, and are subject to, and amenable to, its provisions. The mere fact that a party knows that the law is violated is not sufficient ; but if he has an interest in a mill, situated near the distillery, and the carrying on of the distillery would bring direct benefit to the mill in the way of toll ; and if, in addition thereto, he has an interest in the land on which the distillery is erected, so as to give him the control of it, and knows that the law is violated, in the management thereof, then he may be con- sidered a distiller. U. S. i). Howard, 11 I E. R. 119. Before a penalty can be visited upon the property or person of a dis- tiller, the assessment must be made; and there should also be a demand for the tax, and a refusal by him. All that the law says is, that the special taxes shall be paid, and that they shall be paid as required by law. Precisely when they shall be paid is not distinctly set forth in the law; and the presumption is that they are payable when demanded by the proper officer. XJ. S. «. 35 Bbls. 9 I. R. R. 67 ; U. S. ii. Trobe et al. 3 I. R. R. 133. Contra, U. S. v. Truesdell et al. 5 I. R. R. 103 ; U. S. «. Deve- lin, 7 I. R. R. 45, 94 ; s. c. 1 A. L. T. (C. R.) 38; s. c. 6 Blatch. 71. "When a distiller has made an application to have the special tax assessed, he is not guilty of any ofifence under the law, unless it appears that he carried on the business of distilling after he was in default for non-payment. A distiller cannot be said to have carried on business with- out payment of the special tax, as required by law, so long as he has taken all necessary steps towards the ascertainment and payment of his special tax, and stands ready to pay it, as required by law. U. S. «. Shea, 6 I. R. R. 198 ; s. c. 1 A. L. T. (C. R.) 14 ; s. c. 5 Blatch, 545. EULIKGS, DBCISlOIfS, ETC. , 217 The use of a still hy chemists to produce alcoholic spirits makes them liable. 6 I. E. E. 163. The recovery of alcohol is not regarded by the law as distillation. It is not essential that the recovery should be made at the druggist's shop or place of business. 5 I. R. R. 163. (J) A person becomes liable, not as a distiller but as a rectifier, by reason of passing whiskey upon which the tax has been paid through a still, for the sole purpose of improving it. 5 I. R. E. 59. To mix distilled spirits, wines, or other liquors with any material, does constitute rectification, if by such mixing a spurious, imitation, or com- pound liquor is manufactured. To mix any material with distilled spir- its, wine, or other liquor, which does not result in producing a spurious, imitation, or compound liquor, is not rectification A spurious liquor is an imitation of, and held out to be, genuine. An imitation liquor is one that is an imitation of the genuine, and held out as such imitation. A compound liquor is any liquor composed of two or more kinds of spirits, or of one or more kinds of spirits 'mixed with any material which changes the original character of either, so as to produce a differ- ent kind, as known to the trade. The addition of water to spirits is not rectification. The mixing of spirits of different kinds is rectifica- tion. A party may become a rectifier by any manipulation of spirits which results in rectifying, purifying, or refining the same by any process other than by original and continuous distillation from mash, wort, or wash, through continuous closed vessels and pipes, until the manufacture thereof is complete. For instance, a party may mix a material with spirits, wine, or other liquor, which will not produce either a spurious, imitation, or compound liquor, but such mixing is neverthe- less rectification, if it results in either purifying or refining the spirits, wine, or other liquors thus mixed. 10 I. R. R. 121. A manufacturer of medicinal bitters who purchases raw or unrectified spirits, and rectifies the same prior to their use, is a rectifier. 10 I. R. R. 65. Manufacturers of bitters who use rectified spirits, on which the tax has been paid, and who prefer to be taxed as rectifiers, must not put them up in the style of proprietary medicines nor vend them as medicines. 11 I R. R. 169. (c) Brewers are exempt from special tax as dealers in liquors, with respect to their sales of liquors made at the brewery premises in the original casks or packages, to which the tax-paid stamps are required to be aflaxed. Brewers selling any other merchandise at their brewery should be assessed the proper special tax ; but brewers who merely sell the refuse arising from the process of brewing, for the sake of getting rid of it, should not be required to pay special tax with respect to such sales. 101. R. R.40. Brewers are liable to special tax as liquor dealers with respect to their sales made at any other place than the brewery premises. 10 I. R. R. 177. A distiller cannot sell his product in any way without paying tax therefor, after his tax receipt has expired. In such a case, the distiller would incur no liability on sales made through dealers on commission. 10 I. R. R. 154. A rectifier cannot sell his distilled product at any place without pay- ing tax as a liquor dealer. 10 I. R. R. 194. A rectifier is not liable to tax as a dealer for simply transferring the liquor rectified by him to himself. His liability to tax as a dealer depends upon the character and amount of Ms sales to others. 11 I. R. R. 194. 218 V. S. INTBRNAIi REVENUE txVWS. The words "five gallons," in this section, mean wine -gallons, and not proof gallons. TJ. S. v. Wangarien et al. 11 I. R. R. 181 ; 11 I. R. R. 201. A person who purchases liquor from a dealer in his own name, under an order from a customer, pays for the same, and ships it to the customer, and charges the amount on his bill, is a liquor dealer. But if he simply carries the order to the liquor dealer, who fills it, and ships the goods direct to the customer, no liability to tax as a liquor dealer is incurred. Persons who sell a mixture of soda-water, &c., and wine or other spirits, are regarded as liquor dealers. 11 I. R. R. 137. Brewers who sell their products in any other manner than at the brew- ery premises, and in the original casks or packages, to which the tax- paid stamps are affixed, are liquor dealers. Brewers cannot sell their products from wagons about the streets. 11 I. R. R. 131. No special tax as a liquor dealer is required of a town, city, or county agent appointed under what is popularly known as the " Maine Liquor Law," for sales made in strict accordance with the provisions of said law. 11 L R. R. 145. Persons who sell bitters and other alcoholic compounds, which are put up and sold as medicines, and which are properly stamped under Sched- ule C, are not liquor dealers. Persons selling bitters or other alcoholic compounds which are put up and stamped as rectified spirits should be held subject to tax as liquor dealers. 11 I. B. R. 1. The liability to tax as a dealer depends upon sales. Every person who sells or ofiers for sale distilled spirits for himself or on commission is a dealer. 11 L R. R. 17. Auctioneers are liable to special tax as dealers in liquor with respect to their sales of liquor by auction. 10 L R, R. 12. Persons engaged in the manufacture of wine from grapes, berries, or fruits of their own growth are not subject to tax as liquor dealers for sell- ing such wine at the place where the same is manufactured. Persons engaged in the manufacture of wine from grapes, berries, or fruits not of theii- own growth should pay special tax as liquor dealers when selling the same, whether their sales are made at the place of manufacture or otherwise. 10 I. R. B. 186. Dealers in liquor cannot, under the payment of one special tax, sell at two or more places at the same time, nor can they delegate to another person as their agent the right of exemption from tax, except when sell- ing at the place stated in their tax receipt. They will become liable to an additional and separate tax as dealers in liquors, if they also, at the same time, sell in the manner of a peddler. 10 I. R. R. 137. A wholesale dealer cannot sell a package containing less than five gallons. The sale of several packages which separately contain less, but in the aggregate contain more, than five proof gallons cannot be made by a wholesale dealer. The sale of several packages of the same kind of spirits at the same time, each containing less than five proof gallons, but which in the aggregate contain more, cannot be made by a retail dealer ; but he may sell several packages of different kinds of spirits, each containing less than five proof gallons, although the aggregate may be more. The sale of each different kind is considered as a separate sale. 10 I. R. R. 98. The tax is to be imposed on all sales in excess of the amounts speci- fied, at the proper rates, including not only units of hundreds and thou- sands, but fractions thereof. 10 I. R. R. 5. Wholesale liquor dealers are entitled to a deduction from their returns of the sales made through other wholesale liquor dealers. 10 I. R. R 49. A party who sells out his entire stock at one sale does not thereby become liable to tax as a wholesale dealer. 10 I. R. B. 169. EULINGS, DECISIONS, ETC. 219 Dealers in liquor, -whether -wholesale or retail, -whose sales, including sales of all other merchandise, exceed |35,000, are subject to an addi- tional tax of one dollar for each hundred dollars of sales of liquors in excess of such $25,000, and at the same rate as a -wholesale dealer on every thousand dollars of sales of other merchandise. When any liquor dealer's sales shall exceed $25,000, he must keep separate accounts of his sales of liquors and his sales of other merchandise, and must return them in sepa- rate items, and will be assessed one per cent, on his sales of liquors, and one-tenth of one per cent, on his sales of other merchandise, in excess of such $25,000. The exemption of distillers and bre-wers from special tax as dealers extends only to sales of liquors of their o-wn production, made at the place of manufacture, and in the original casks or -packages to -which the tax-paid stamps are required to be affixed. The liquors must be delivered directly to the purchaser or his agent from the_ distillery or bre-wery premises. Dealers in liquors -who sell in quantities less than five gallons, and also in quantities of five gallons and upward, must pay special tax both as wholesale and retail liquor dealers. 9 I. R. R. 157. The additional tax of $1 on the sales of wholesale dealers in excess of $25,000 is a special tax, and not a tax on sales, and is not repealed. 12 1. R. R. 69. TOBACCO, SNUFF, AND CIGAES. Special Taxes. I Dealers {d) in leaf tobacco, whose annual sales do not exceed ten thousand dollars, shall each pay t-wenty-five dollars ; and if tlieir annual sales exceed ten thousand dollars, shall pay in addi- tion two dollars for every thousand dollars in excess often thou- sand dollars. Every person shall be regarded as a dealer in leaf to- bacco whose business it is for himself, or on commission, to sell, or offet for sale, leaf tobacco. And payment of a special tax as a wholesale dealer, tobacconist, manufacturer of cigars, or man- ufacturer of tobacco, shall not exempt any person dealing in leaf tobacco from the payment of the special tax therefor hereby re- quired. But no farmer or planter shall be requii'ed to pay a special tax as a dealer in leaf tobacco for selling tobacco of his own production, or tobacco received by him as rent from tenants who have produced the same on his land. Dealers in tobacco, whose annual sales exceed one hundred dollars and do not exceed one thousand dollars, shall each pay five dollars ; and when their annual sales exceed one tliousand dollars, shall pay in addition two dollars for each thousand dol- lars in excess of one thousand dollars. Every person whose business it is to sell or offer for sale manufactured tobacco, snuff", or cigars, shall be regarded as a dealer in tobacco. And any retail dealer, liquor dealer, or keeper of a hotel, inn, tavern, or eating-house, who sells tobacco, snuif, or cigars, shall pay, in a'd- dition to his special tax, the special tax as a dealer in tobacco. Manufacturers of tobacco shall each pay ten dollars ; and in addition thereto, where the amount of the penal sum of the bond of such manufacturer, required by this act to be given, shall ex- ceed the sum of five thousand dollars, two dollars for each 220 U, S. IKTERKATi REVENUE LAWS. thousand dollars in excess of five thousand dollars of such penal sum. Every person whose business it is to manufacture tobacco or snuff for himself, or who shall employ others to manufacture tobacco or snuff, whether such manufacture shall be by cutting, pressing, grinding, crushing, or rubbing of any leaf or raw tobacco, or otherwise preparing raw or leaf tobacco or manu- factured or partially manufactured tobacco or snuff, or theput- ting up for use or consumption of scraps, waste, clippings, stems, or deposits of tobacco, resulting from any process of handling tobacco, shall be regarded as a manufacturer of to- bacco. But no manufacturer of tobacco shall be required to pay the special tax as a dealer in tobacco for selling the pro- ducts of his own manufacture. . Manufacturers of cigars, whose annual sales shall not ex- ceed five thousand dollars, shall each pay ten, dollars, and when their annual sales exceed five thousand dollars, shall pay in ad- dition two dollars for each thousand dollars in excess of five thousand dollars. Every person whose business it is to make or manufacture cigars for himself, or who shall employ others to make or manufacture cigars, shall be regarded as a manufac- turer of cigars. No special tax receipt shall be issued to any manufacturer of cigars until he shall have given the bond re- quired by law. Every person whose business it is to make cigars for others, either lor pay, lipon commission, on shares, or otherwise, from material furnished by others, shall be re- garded as a cigar-maker. Every cigar-maker shall cause his name and residence to be registered, without previous demand, with the assistant assessor of the division in which such cigar- maker shall be employed ; and any manufacturer of cigars em- ploying any cigar-maker who shall have neglected or refused to make such registry shall, on conviction, be fined five dollars for each day that such cigar-maker so offending by neglect or refusal to register shall be employed by him.] ((f) Several partners buying and selling leaf tobacco at one place, as a or firm, are required to pay but one tax. 11 I. R. R. 98. If a manufacturer of tobacco or a manufacturer of cigars sells at the same time the products of other manufacturers, he must pay a special tax as dealer. 9 I. R. R. 161. A person who engages in the business of buying and selling leaf tobacco, though his sales are all made through an agent, factor, or com- mission merchant, is liable to this tax. 11 I. R. R. 49. Every commission merchant selling leaf tobacco, and every other per- son who, as factor, agent, or consignee, sells tobacco on commission, is liable to this tax. 11 I. R. R. 17. A peddler whose sales of manufactured tobacco, snuff, or cigars exceed $100 per annum is liable to a special tax as such, and also to the tax imposed by this section. This tax is not in lieu of any other special tax, and the payment of another special tax — as, for instance, as commission merchant, manufac- KULINGS, DECISIONS, ETC. 221 tvirer, auctioneer, &c.— does not relieve from the liability to pay this tax if the party also deals in tobacco.. 10 1. R. R. 11. , ,. , , x A person who deals only in tobacco, snuff, or cigars, is only liable to this tax. 10 I. R. R. 25. Retail dealers, keepers of hotels, inns, taverns, drinking or eating houses are liable to this tax, in addition to the other special taxes, if they sell tobacco, snuff, or cigars. 10 I. R. R. 58. . ij, Every person wlfDse business it is to make cigars for himselt, or who employs others to make cigars, is a manufacturer of cigars. 10 I. R. R. 66. Mode of Ascertaining Amount of Special Tax. [Sec. 60. guiy =o,i868.) Andie it further enacted, That in every case where it becomes necessary to ascertain the amount of an- nual or monthly sales made by any person on whom a special tax is imposed by this act, or to ascertain the excess of such sales above a given amount, such am.ounts and excesses shall be as- certained and returned (a) under such regulations and in such form as shall be prescribed by the Commissioner of Internal Eevenue ; and in any case where the amount of the tax has been increased by this act above the amount before paid by any person in that behalfj such person, except retail dealers, shall be again assessed and pay the amount of such increase from the taking effect of this act ; and in any case where the amount of sales or receipts has been understated or underesti- mated by any person, such person shall be again assessed for such deficiency, and shall be required to pay the same, with any penalty or penalties that may by law have accrued or be chargeable thereon.] (a) Dealers in leaf tobacco whose annual sales exceed |10,000, dealers in tobacco whose annual sales exceed $1,000, and manufacturers of cigars whose annual sales exceed $5,000, shall, on or before the 10 th day of each month, make a return of the entire amount of their sales for the preceding month, and the tax on the excess of such sales above the given amount, as prescribed by law, will be assessed and returned for collection on or before the last day of the month. Whenever such sales are more or less than one thousand dollars, or an even number of thousand dollars, the fractional part of one thousand will be carried to the sales of the succeeding month. Amount of Tax on Tobacco. [Sec. 61. (July 20, mi.) And le itfurtlier enacted, That upon tobacco and snuff which shall be manufactured and sold, or removed for consumption or use, there shall be assessed and collected the following taxes : On snuff, manufactured of tobacco or any substitute for to- bacco, ground, dry, damp, pickled, scented, or otherwise, of all descriptions, when prepared for use, a tax of thirty-two cents per pound. And snuff-flour, {a) when sold, or removed for use or consumption, shall be taxed as snuff, and shall be put up in packages and stamped in the same manner as snuff. 222 U. S. rSTTEKKAL REVENUE LAWS. On all chewing tobacco, (5) fine-cut, plug, or twist ; on all tobacco twisted by hand, or reduced from leaf into a condition to be consumed, or otherwise prepared, without the use of any machine or instrument, and without being pressed or sweet- ened; and on all other kinds of manufactured tobacco, not herein otherwise provided for, a tax of thirty-two cents per pound. On all smoking tobacco, exclusively of stems, or of leaf, with all the stems in, and so sold, the leaf not having been previously stripped, butted, or rolled, and from which no part of the stems have been separated by sifting, stripping, dressing, or in any other manner, either before, during, or after the pro- cess of manufacturing ; on all fine-cut shorts, the refuse of fine- cut chewing tobacco which has passed through a riddle of thirty-six meshes to the square inch by process of sifting, and on all refuse scraps and sweepings of tobacco, a tax of sixteen cents per pound.] (a) The law taxes every kind of snuff or snuff flour preparedfor use and sold or removed for use or consumption. It taxes snuff-flour prepared for use, and requires that it shall be put up in packages and the tax paid by stamps before it leaves the place of manufacture. 9 I. R. R. 57. (J) The fact that a tax may have been paid on the cavendish or plug does not affect the liability of fine-cut tobacco manufactured from it. 9 I. R. R. 193. The law does not require that there shall be any extended change in the natural leaf or any extended mode of preparation, or any process of reduction which cannot be performed by hand and without the aid of any machine or instrument. Therefore, all tobacco twisted by hand or pre- pared by any process, however simple, for consumption or use, must be packed as prescribed by law for manufactured tobacco ; and the tax of 32 cents per pound paid thereon. All scraps, waste, clippings, &c., put up for general sale and thrown up- on the market for indiscriminate purchasers for use or consumption, wiU be regarded as manufactured tobacco, and will be required to be packed and the tax paid thereon. And any person purchasing scraps, waste, clippings, stems, sweepings, or broken and fragmentary tobacco, and manipulating the same by any process of cutting, pressing, grinding, crushing, rubbing, screening, or any other process, or putting up the same for use or consump- tion, will be held to be a manufacturer of tobacco. And any person who purchases raw or leaf tobacco, and in any way changes its condition and puts it up for use or consumption, will be held likewise to the special tax, and the specific tax payable by stamps. Any process by which natural leaf tobacco is made into smoking tobac- co which does not involve the stripping, butting, or rolling of the stems, or the separation of the stems from the leaf by sifting, stripping, dressing, or in any other manner, either before, during, or after the process of man- ufacturing may be employed, and the tobacco produced by such process will be liable to the tax of 16 cents. But if the stems are stripped from the leaf, or butted or rolled, or if any portion of the stems are removed before, during or afterthe process of man- ufacturing, the tobacco produced by any process involving these conditions will be liable to a tax of 33 cents per pound. 10 I. R. R. 59. EULINGS, DECISIONS, ETC. 223 All refuse offlne-cut chewing, or what are technically known as fine-cut shorts, to be entitled to the 16 cents per pound tax must actually have passed through a riddle of 36 meshes to the square inch. The mixing of flne-cut shorts with other kinds of tobacco, whether chewing or smoking, renders the tobacco so mixed liable to a tax of 33 cents per pound. Refuse, scraps, or sweepings, whether resulting ft'om the manufacture of chewing tobacco or the manufacture of cigars, to be entitled to the tax of 16 cents per pound, must be put up and sold substantially in. the ordi- nary condition in which they are made. If they are re-manufactured, the tobacco made therefrom, whether smoking or chewing' or capable of being used for either purpose, is liable to a tax of 33 cents per pound. Tobacco prepared by processes generally employed in the manufacture of chewing tobacco, using sweetening, licorice or sweetened material, is liable to the tax of 33 cents per pound, though claimed to be sweetened smoking tobacco. 10 I. R. R. 130. Packages for Manufactured Tobacco. [Sec. 62. a^iy =<>, ises.) And he it further enacted, That from and after the passage of this act all mamafactured tobacco shall be put up and prepared (a) by the manufacturer for sale, or removal for sale or consumption, in packages of the following description, and in no other manner : All snuff in packages containing one, two, four, six, eight, and sixteen ounces, or in bladders containing not exceeding, ten pounds eac^, or in jars containing not exceeding twenty pounds. All fine-cut chewing tobacco, and all other kinds of tobacco not otherwise provided for, in packages containing one-half, one, two, four, eight, and sixteen ounces, except that fine-cut chewing tobacco may, at the option of the manufacturer, be put up in wooden packages containing ten, twenty, forty, and sixty pounds each. All smoking tobacco, all fine-cut shorts which has passed through a riddle of thirty-six meshes to the square inch, and all refuse scraps and sweepings of tobacco, in packages contain- ing two, four, eight, and sixteen ounces each. All cavendish, plug, and twist tobacco in wooden packages not exceeding two hundred pounds net weight. And every such wooden package shall have printed or marked thereon the manufacturer's name and place of manu- facture or the proprietor's name and his trade-mark and the registered number of the manufactory, and the gross weight, the tare, and the net weight of the tobacco in each package : Provided, That these limitations and descriptions of packages shall not apply to tobacco and snuff transported in bond for ex- portation and actually exported.] (a) Upon an application made by any manufacturer to the assessor of his district, accompanied by a suitable voucher that the party to whom he 224 TJ. S. INTEKlfAL EBVEIfUB LAWS. proposes to sell has given bonds as a manufacturer in accordance with law, and stating also the kind and quantity of the scraps, waste, or sweepings he proposes to sell, the assessor is authorized to give a permit for the re-' moval of such scraps, &c., in bulk, and without the payment of any tax. But when the removal is made beyond his district, a list or schedule setting forth the name of the seller, and also the name of the purchaser, with the collection district ftom which the removal is made, and the number and kind of packages, and the quantity contained therein, should be forward- ed to the assessor into whose district the removal is made. The purchaser wUl be held accountable for the quantity of scraps, &c., received, and must enter them in his nlonthly report as materials purchased. 10 I. R. R. 193. Such sales can only be made to manufacturers of cigars, or to manufac- turers of tobacco. 11 1. R. R. 138. The label and notice required by section 68, and the marks and brands required by this section, must both appear upon each and every package. 8 I. R. R. 178. Slight irregularities do not afford sufficient grounds for seizure. The goods should not be detained any longer than is necessary to obtain satis- factory explanation for any informality, and to satisfy the officers that no fraud has been committed or intended. 10 I. R. R. 81. The law does not describe the form of wooden packages nor the size, within the limit of two hundred pounds, except for fine-cut chewing to- bacco. The manufacturer may use kegs, barrels, drums, or pails. 12 1. R. R. 77. Metallic Packages. [Sec. 28. CJuiy 14, 1870.) And le it further enacted, That in all cases where tobacco is required to be put up *in wooden pack- ages as provided by section sixty-two of an act entitled " An act imposing taxes on distilled spirits and tobacco, and for other purposes," approved July twenty, eighteen hundred and sixty-eight, it shall be lawful for the Commissioner of Internal Kevenue to allow the same to be put up in metallic packages : Provided, That they shall be so constructed with such corru- gations for receiving and protecting the revenue stamps as the Commissioner may approve.] Manufacturers to furnish Statements, give Bonds, &c. [Sec. 63. Guiy =0, 1868.) And ie it further enacted. That every person before commencing, or, if already commenced, before con- tinuing the manufacture of tobacco or snuff, shall, in addition to a compliance with all other provisions of law, furnish, without previous demand therefor, to the assessor or assistant assessor of the district where the manufacture is to be carried on, a statement, {a) in duplicate, subscribed under oath or affirma- tion, accurately setting forth the place, and, if in a city, the street and number of the street, where the manufacture is to be carried on ; the number of cutting-machines, presses, snuff- mills, hand-mills, or other machines; the name, kind, and quality of the article manufactured, or proposed to be manu- KULINGS, DECISIONS, ETC. 225 factured ; and, if the same shall be manufactured for, or to be sold and delivered to, any other person, as agent, or under a special contract, the name and residence and' business or occu- pation of the person for whom the said article is to be manu- factured, or to whom it is to be delivered ; and shall give a bond in conformity with the provisions of this act, to be ap- proved by the collector of the district, in the sum of two thou- sand dollars, with an addition to said sum of three thousand dollars for each cutting-machine kept for use, of one thousand dollars for each screw press kept for use in making plug or pressed tobacco, of five thousand dollars for each hydraulic press kept for use, of one thousand dollars for each snuif mill kept for use, and of one thousand dollars for each hand-mill, or other mill or machine, kept for the grinding, cutting, or crush- ing of tobacco ; that he will not engage in any attempt, by himself or by collusion with others, to defraud the government of any tax on his manufactures ; that he will render truly and correctly all the returns, statements, and inventories prescribed by law or regulations ; that whenever he shall add to the num- ber of cutting-machines, presses, snuff-mills, hand-mills, or other mills or machines as aforesaid, he will immediately give notice thereof to the collector of the district ; that he will stamp, in accordance with law, all tobacco and snuff manufac- tured by him before he removes any part thereof from the place of manufacture ; that he will not knowingly sell, pur- chase, expose, or receive for sale any manufactured tobacco or snuff which has not been stamped as required by law ; and that he will comply with all the requirements of law relating to the manufacture of tobacco or snuff. And the sum of the said bond may be increased from time to time, and additional sure- ties required by the collector, under the instruetions of the Commissioner of Internal Eevenue. And every manufacturer shall obtain a certificate from the collector of the district, who is hereby authorized and directed to issue the same, setting forth the kind and number of machines, presses, snuff-mills, hand-mills, or other mills and machines, as aforesaid, for which the bond has been given, which certificate shall be posted in a conspicuous place within the manufactory. And_ any tobacco manufacturer who shall neglect or refuse to obtain such certificate, or to keep the same posted as hereinbe- fore provided, shall, on conviction, be fined not less than one hundred dollars nor more than five hundred dollars. And any person manufacturing tobacco or snuff" of any description with- out first giving bond as herein required, shall, on conviction, be fined not less than one thousand dollars nor more than five thousand dollars, and imprisoned for not less than one year nor more than five years. And the working or preparation of any 15 226 U. S. INTERNAI; EEVENUE LAWS. leaf tobacco, or tobacco stems, scraps, clippings, or waste, by sitting, twisting, screening, or any other process, shall be deemed manufacturing.] (a) The manufacturer without demand must furnish the required state- ment on Form 36. Every assessor will see that these statements are proper- ly furnished. The assessor will transmit to the collector one copy of each statement as soon as it is received by him. From these statements the col- lector will determine whether the bonds offered by manufucturers are in conformity to law. Before approving any bond the collector should re- quire atfidavits of the sureties to be made on Form 33 and filed in his of- fice with the bond. The collector will issue the certificate, Form 41, to the , manufacturer. 10 I. R. R. 58. The sureties on the bond are not liable when the manufacturer con- tinues business after the expiration of his license. U. S. v. Smith, 8 Wall. 587. Contra, TJ. S. v. Traesdell et al. 5 I. R. B. 103. Manufacturers' Signs. [Sec. 64. (July 20, ms.) And be it further enacted, That within thirty days after the passage of this act every manufacturer of to- bacco and snuff shall place and keep on the side or end of the Tjuilding within which his business is carried on, so that it can be distinctly seen, a sign, with letters thereon not less than three inches in length, painted in oil colors or gilded, giving his full name and business. Any person neglecting to comply with the requirements of this section shall, on conviction, be fined not less ,than one hundred dollars nor more than five hundred dollars.] Record of Manufactories. [Sec. 65. (July 20, ises.) And he it further enacted, That it shall be the duty of every assistant assessor to keep a record, (a) in a book or books to be provided lor the purpose, to be open to the in- ispection of any person, of the name and residence of every per- son engaged in the manufacture of tobacco or snuif in his divi- sion, the place where such manufacture is carried on, and the number of the manufactory ; and the assistant assessor shall en- ter in said record, under the name of each manufacturer, a copy of every inventory required by this act to be made by such man- ufacturer, and an abstract of his monthly returns ; and each as- sessor shall keep a similar record for the district, and shall cause the several manufactories of tobacco or snuff in his district to be numbered consecutively, which numbers shall not there- after be changed.] («) Every assistant assessor will keep the required record in a book, Form 74. In this book he will enter all inventories required by law to be made by tobacco manufacturers, and abstracts of all monthly returns, &c. Each assessor is required to keep a similar record for his dwtrict. Assess- KULrNGS, DBCISIOKS, ETC. 227 OTS should require their assistants as often as once every month to make a personal and careful inspection of every tobacco and cigar rnanufactory in his division and report the condition of each, what changes, if any, have been made in machinery or number of toen, vphat factories are running on full time and employing their entire productive force, what factories are fully complying with all the requirements of the law, and which are not, and in what particulars they are not. 9 I. R. R. 59. Manufacturer to Furnish Inventories and Keep Books. [Sec. 66. auiy =<>, ises.) And he it further enacted, That every person now or hereafter engaged in the manufacture of tobacco or snuff, shall make and deliver to the assistant assessor of the division a true inventory, in such form as shall be prescribed by the Commissioner of Internal Revenue, of the quantity of each of the different 'kinds of tobacco, snuff-llour, snuff, stems, scraps, clippings, waste, tinfoil, licorice, sugar, gum, and other materials held or owned by him on the first day of January of each year, or at the time of commencing and at the time of concluding business, if before or after the first of January, setting forth what portion of said goods and materials, and what kinds, were man- xifactured or produced by him, and what was purchased from others ; which inventory shall be verified by his oath or afiirma- tion ; and the assistant assessor shall make personal examina- tion of the stock sufficient to satisfy himself as to tlie correctness of the inventory, and shall verify the fact of such examination by oath or affirmation taken before the assessor, to be indorsed on or affixed to the inventory ; and every such person shall keep a book or books, the forms of which shall be prescribed by the Commissioner of Internal Revenue, and enter therein daily an accurate account of all the articles aforesaid purchased by him, the quantity of tobacco, snuff, and snuff-flour, stems, scraps, clippings, waste, tinfoil, licorice, sugar, gum, and other mate- rials, of whatever description, whether manufactured (and if plug tobacco the number of net pounds of lumps made in the lump-room, and the number of packages and pounds produced in the press-room each day), sold, consumed, or removed for con- sumption or sale, or removed from the place of manufacture in bond, and to what district ; and shall, on or before the tenth day of each and every month, {a) furnish to the assistant assessor of the division a true and accurate abstract from such book of all such purchases, sales, and removals, made during the month next preceding, which abstract shall be verified by his oath or affirm- ation ; and in case of refusal or wilful neo;lect to deliver the in- ventory, or keep the account, or furnish the abstract aforesaid, he shall, on conviction, be fined not less than five hundred dol- lars nor more than five thousand dollars, and imprisoned not less than six months nor more than three years. And it shall be the duty of any dealer in leaf tobacco, or in 228 U. S. INTEKNAL KEVENUE LAWS. any material used in manufacturing tobacco or snuff, on demand of any officer of internal revenue, to render a true and correct statement, verified by oath or affirmation, of the quantity and amount of such leaf tobacco or materials sold or delivered to any person named in such demand ; and in case of refusal or neglect to render such statement, or if there is cause to believe such statement to be incorrect or fraudulent, the assessor shall make an examination of persons, books, and papers, in the same manner as provided in this act in relation to frauds and eva- sions.] (a) The monthly returns must be made on Form 63, and must be veri- fied by oath or affirmation. The inventory is to be made on Form 70. The book is to be kept on Form 77. 10 I. R. R. 59. A manufacturer who has on hand stems, or waste, wHch is not worth tbe trouble of keeping, and who desires to destroy the same, may do so in the presence and under the supervision of an internal revenue officer, and the assessor will give him credit upon the proper books for the amount so destroyed. 10 1. R. R. 153. Tobacco Stamps. [Sec. 67. Quiy 2°, ises.) And be it further enacted, That the Commissioner of Internal Kevenue shall cause to be prepared suitable and special revenue stamps {a) for payment of the tax on tobacco and snuff, which stamps shall indicate the weight and class of the article on which payment is to be made, and shall be affixed and cancelled in the mode prescribed by the Commis- sioner of Internal Revenue, and stamps when used on any wooden package shall be cancelled by sinking a portion of the same into the wood with a steel die, also such warehouse stamps as are required by this act, which stamps shall be furn- ished to the collectors of internal revenue requiring the same, who shall each keep at all times a supply equal in amount to three months' sales thereof, and shall sell the same only to the manufacturers of tobacco and snuff in their respective districts who have given bonds as required by law, to owners or con- signees of tobacco or snuff, upon the requisition of the proper custom-house officer having the custody of such tobacco or snuff, and to persons required by law to affix the same to tobacco or snuff on hand on the first day of January, Anno Domini eigh- teen hundred and sixty-nine ; and every collector shall keep an account of the number, amount, and denominate values of stamps sold by him to each manufacturer, and to other persons above described.] (a) Stamps will be furnished to collectors upon requisition, and, with the exception of the exportation stamp, will be sold to manufacturers at their full value, as indicated by the tax on the quantity represented. For each exportation stamp 35 cents will be collected when the entry is made EULIKGS, DBOISIOiirS, ETC. 229 for the transportation of the tobacco to an export warehouse. The sales of the stamps must be reported monthly on Form 76, and also on Form 51, and are not to be entered on Form 33, nor receipted for on Form 23J. Collectors will procure from such manufacturers of tobacco in their respgc- tive districts as may desire to make use of stamped wrappers estimates of the quantities they will from time to time severally require for use, and will then forward to the Office of Internal Revenue a requisition for the stamped wrappers. The contractor will then be directed to print the required number for each manufacturer, and hold the same subject to the order of the collector. No order will be issued by the collector to any manufacturer, except upon the payment of the full amount of tax repre- sented by the stamps. The printing of the stamps will be at the expense of the government, but the cost of the font and paper, and any additional printing that may be desired, must be paid by the manufacturer. Collect- ors will report each month on Form 76 the number of the stamped wrap- pers of each kind for which they have made requisitions, the amount col- lected during the month, and the balance remaining on hand on the last day of the month. All packages of tobacco and snuff containing ten pounds or upward must have affixed a registered stamp, and the stamp must be of a, de- nomination corresponding with the net weight of the package when the net weight of the package is an even number of pounds, and when such package can be fully covered by a single stamp. If the net weight of the package is such that no single stamp will suffice for the payment of the tax due thereon, then the manufacturer will affix a stamp of that denom- ination which approaches nearest to the net weight of the package and affix one, and, if necessary, more sm dler stamps to fill up the complement and cover the amount of tax due. In stamping vendors' packages frac- tions of a pound less than one-half pound may be rejected. Stamps must be affixed as follows : 1. Upon all kegs, half barrels and barrels of fine-cut chewing tobacco, the stamps shall be placed across the staves and be attached to as many staves as possible between the first and second tier of the hoops. 3. Upon ten or twenty pound boxes of fine-cut chewing and upon all boxes and caddies of plug or other descriptions of chewing tobacco, the stamp shall be affixed over one corner or angle of the box or caddy at equal distances from either end, attaching about equally to either side. Andupon all such packages a groove of an inch deep shall be made to admit the stamp and prevent its being torn or rubbed ofl" by transporta- tion. If two serial stamps are used upon the same box, the second stamp shall be affixed in the same manner, only placed upon opposite sides of the box. 3. Strip stamps, whether used for packages of smoking tobacco, fine- cut chewing, snuff or cigars, must be so attached as to effectually seal the package and render it impossible to open the same or remove its contents without destroying the stamp. 4. The small stamps for cut tobacco and snuff must in like manner be so placed upon the package as to insure the destruction of the stamp up- on opening the package. The stamps are to be affixed to the packages by using an adhesive material that will cause them to stick to the wood, paper or other pack- age securely and permanently. After the stamps on the wooden packages have become dry and have been proparly cancelled, they must be varnished over thoroughly twice, allowing a short interval for the first coating to set. The stamps must be cancelled in the following manner: 1. The stamps described under paragraph No. 1, including all the reg- istered stamps with serial numbers, will be cancelled by the manufacturer 230 tr. S. INTEEKAL EEVENTJE LAWS. ■writing Ms name upon the stamp in the blank space left for that purpose, and also writing the date when the stamp was applied or used, in addition to the use of a steel die by which a portion of the stamp is to be sunk into Ijie wood. The place for using the die is marked upon the stamp. 3. The small stamps for cut tobacco and snuff in packages of one-half ounce, one ounce and two ounces, and the stamped foil and paper wrap- pers must be cancelled by writing or imprinting upon each stamp the man- ufacturer's or proprietor's name and the date of cancellation. 3. The strip stamps for tobacco and snuflf will be cancelled in the same manner, and in addition thereto each strip stamp must be so aflBxed on the package that in opening the same or using the contents thereof the stamp will be effectually destroyed. 4. The strip stamps for cigars in boxes will be cancelled by the use of a stencil plate of brass or copper, in which there shall be cut not less than six waved lines long enough to extend not less than three-quarters of an inch beyond each side of the stamp on the box. And in addition to the stencil plate of waved lines, the name of the manufacturer of domestic or of the owner of imported cigars, and the date of cancellation, must be written or imprinted upon each strip stamp used for cigars in boxes. The strip stamps for cut and smoking tobacco are made sufficiently long to pass over both ends of the package and turn the opposite angles, thus effectually sealing the package, and they must be so affixed ; and when applied to bags which only open at one end they must be affixed so as to effectually close that end. In cancelling stamps by writing or im- printing the manufacturer's or proprietor's name, where blank spaces are left on the stamps for that purpose they must always be used. The regulations do not say where the unregistered stamps shajl be placed. Manufacturers are permitted to attach the small stamps as they see fit, putting them into the groove, on the angle of the caddy or box, or attaching them to the sides or to the heads. 13 I. E. K. 86. Collectors are to keep on hand at all times a supply of stamps equal in amount to three months' sales thereof. They can part with them only up- on sale or upon payment therefor according to their representative value. They are authorized to sell stamps to the following parties in their own districts: 1st. To manufacturers who have given bond as required by law. 3d. To owners or consignees of tobacco and snuff or importers of cigars upon the requisition of the proper custom house officer. 3d. To persons required by law to affix the same to tobacco, snuff and cigars on hand un- stamped, that is, to dealers in manufactured tobacco. They are limited in making sales to these three classes. The sale of stamps by any other person than a collector is not legal. 10 I. R. R. 60. The manufacturer, not the proprietor, is required to affix and cancel stamps. The name may be written by himself or by some one authorized to sign for him. No particular form or device has been prescribed for the steel die. 10 I. R. R. 89. Collectors must keep -an account of sales of stamps in ledger form, opening a separate account with every manufacturer or other person pur- chasing stamps. Stamps are to be delivered only upon the written order of the person entitled to purchase the same. In signing his name to the order, the applicant will state whether he is a manufacturer, importer, or dealer in manufactured tobacco or cigars. The number, amount and de- . nominate values of the stamps delivered will be entered on the ledger. The orders will be kept on file in the collector's office. At the end of each and every month, or on or before the 10th day of the following month, the collector will transmit to the assessor of his district a list or abstract of the number, amount, and denominate values of the stamps sold by him to each manufacturer or other person. Upon the receipt of these lists or BTJLINGS, DECISIONS, ETC. 231 abstracts, the assessor will enter them upon Ms account kept with the manufacturer, or his inventory account with the dealer in manufactured tobacco, &c., as the case may be. Whenever there is a discrepancy be- tween the manufacturer's stamp account and his return of sales and prod- ucts, the assessor will immediately make an investigation and report the result to the O&ce of Internal Revenue. 10 I. E. R. 139. The collector's name in his own handwriting must appear in every registered stamp issued from his office, and the blanks in the body of the stamp must be filled with the number of the district, the State and the precise date of the issue. The blanks in the stubs must be filled in such manner as to preserve a perfect record of the following facts, viz. : the person to whom the stamp corresponding was issued, number of his fac- tory, date when issued, and the collector by whom the stamp was issued. The stubs and coupons of registered tobacco stamps must be preserved in the same manner as the stubs and coupons of stamps used for distilled spirits. A deputy collector may be authorized to sign the stamps upon application to the Office of Internal Revenue setting forth the reasons for the application. 10 I. R. R. 185. When stamps are once affixed to the packages they become a part thereof, and cannot be again used by the manufacturer nor redeemed by the government, even though the packages subsequently become spoiled and worthless. 10 1. R. R. 47. The stamps may be affixed to the sides of drums and kits or tubs or pails of fine-cut chewing tobacco. 11 1. R. R. 43 ; iS I. R. R. 77. Proper internal revenue stamps are those, and only those, prepared by or- der of the Commissioner in pursuance of the authority given him by the 67th section, and furnished to collectors of internal revenue, who aloTie are au- thorized to sell and issue them. A package to be properly stamped must not only have genuine stamps affixed and cancelled, but the stamps must be of a denomination and value sufficient to pay the entire amount of tax to which the contents of the package is liable, and the stamps must not have been used previously to pay the tax on any other package of manufactured tobacco, nor the stamped portion of the package so used, nor the package filled or refilled after having been once emptied or par- tially emptied ; hence it follows : 1. That all packages of tobacco short or insufficiently stamped are for- feited to the United States ; 2. All packages of manufactured tobacco having affixed thereto false, forged, fraudulent, spurious, pr counterfeit stamps, or imitations of stamps, are forfeited to the United States ; and 3. All packages of manufactured tobacco with stamps which have been previously used, and all packages which have been emptied or partly emptied and refilled without the destruction of the stamps and the affix- ing of new stamps, and all packages having upon them the stamped por- tion of a package which has been previously used, are forfeited to the United Stat' s. 121. R. R. 77. When there is a discrepancy between the collector's account of sales of stamps to a manufacturer and the manufacturer's returns, the assessor should make assessments for the deficiency. ] 1 I. R. R. 49. Cigars made in State penitentiaries must be regularly stamped. 9 I. R. R. 188. The manufacturer's name must in all cases be written upon the stamp, and in no case can the name of any other party be used, even thougjf that other party is the proprietor of the brand. 10 I. E. R. 57. 232 U. S. INTEKNAIi EEVENUB LAWS. Manufacturers' Lajbels, [Sec. 68. (July 20, ises.) And he it further enacted, That every manufacturer of tobacco or snuff shall, in addition to all other requirements of this act relating to tobacco, print on each pack- age or securely affix by pasting on each package containing to- bacco or snuff manufactured by or for him, a label on which shall be printed, together with the proprietor's or manufacturer's name, (a) the number of the manufactory, and the district and State in which it is situated, these words : " JSToTicB. — The manufacturer of this tobacco has complied with all the requirements of law. Every person is cautioned, under the penalties of law, not to use this package for tobacco again." Any manufacturer of tobacco who shall neglect to print on or affix such label to any package containing tobacco made by or for him, or sold or offered for sale by or for him, or any per- son who shall remove any such label so affixed from any such package, shall, on conviction, be fined fifty dollars for each package in respect to which such offence shall be committed.] (ffl) To facilitate the collection of the tax on tobacco, snuff, and cigars, to prevent and detect frauds thereon, to protect the trade at large — those who buy, sell, use, or consume these articles — all such labels and caution notices as are herein described, fraudulent in iheir design, and gotten up with an intent to mislead and deceive, are positively forbidden to be used; and by virtue of the authority conferred by section 101, the Secretary of the Treasury and the Commissioner prescribe that hereafter there shall be placed upon every keg, half-barrel, and barrel of fine-cut chewing tobacco, and upon every box, drum, caddy, or other package of fine-cut, cavendish, plug, twist, or other description of chewing tobacco, and upon every blad- der and jar of snuff containing more than sixteen ounces, and upon every box of cigars, a sepa/rate and distinct label. This label is required to be not less than four and not more than six inches long, and not less than two and one-half inches in width, and to contain in addition to the caution notice prescribed in sections 68 and 88 respectively, the following facts, printed in plain, open, and legible letters, viz. : (1) the manufacturer's or proprietor's name, (2) the number of the manufactory, (3) the collection district, and (4) the State. These labels will be in the following form, viz. : FOHM TJ. FOR TOBACCO AND SNUFF. A B , Manufacturer. Factory No. , District, State of . Notice. — The manufacturer of this tobacco has complied with all the requirements of law. Every person is cautioned, under the penalties of law, not to use this package for tobacco again. Form V. FOR CIGAR BOXES. A B , Manufacturer. Factory Hfo. , District, State of . Notice. — The manufacturer of the cigars herein contained has com- plied with all the requirements of law. Every person is cautioned, under the penalties of law, not to use this box for cigars again. " EULIXGS, DECISIONS, ETC. 233 The law allows the proprietor's name to be printed upon these labels instead of the manufacturer's. This, however, willonlybe allowed in those cases where the person claiming to be the proprietor is the owner of the factory, or has a legal right or title to the particular brand of goods manufactured, or where the tobacco, snuff, or cigars are made expressly for the person claiming such proprietorship. In either case, the labels must be affixed before the goods are removed from the place of manufacture, and when once so affixed they cannot be removed, or any others substituted therefor. The labels must be affixed to the package in a conspicuous place, where they will be exposed as little as possible to be worn or rubbed off, and in a manner so as not to be covered up or concealed by any other labels or marks, and so as not to conceal by them any other marks or brands re- quired by law to be placed upon the package. A separate and distinct label will not be required on packages oftobacco and snuff containing sixteen otaces or less, provided the manufacturer shall cause to be printed on each such package his name or the proprietor's name and the number of his factory, collection district, and State, together with the caution notice, as required in section 68, in a clear, legible man- ner, where it will not be covered up by the stamp, or otherwise obscured or concealed. All manufactured tobacco, snuff, and cigars imported from foreign countries, in addition to import duties, are made liable, by the act of July 20, 1868, to the same taxes as are imposed on like goods manufactured in the United States, and to have the same stamps, respectively, affixed and cancelled. Imported tobacco, snuff, and cigars are not required to have affixed to each box or other package a label and caution nbtice, as provided in the case of domestic manufactured tobacco, &c. The act of July 28, 1866, authorized the Secretary of the Treasury to provide suitable stamps to be affixed to all imported cigars after they had been inspected, and before they were allowed to be withdrawn from a pub- lic store or bonded warehouse. These were not tax-paid stamps, but only indicated inspection, and showed that the cigars bearing the stamp had been properly entered at the customhouse and the duty paid, and that they were, therefore, not liable to seizure when found upon the market under the law then in force. The law authorizing the use of these inspector's stamps upon imported cigars has not been repealed, and the use of these stamps is still continued, under the instructions issued from the Secretary's Office, dated Sept. 5, 1866. These stamps, when properly filled, |how the inspector's name, the date of inspection, the port where the entry was made, and the name of the importer. They may subserve the same purpose with reference to imported cigars that the label and caution notice answer for domestic cigars. But these import stamps on boxes of cigars must never be mistaken for the internal revenue stamps. They are no more evidence of the payment of the internal revenue tax imposed on all imported cigars than the label or caution notice on boxes of domestic cigars would be in the absence of proper stamps. Series 5, No. 8, Supplement No. 3. , It is apparent that before tobacco can be removed for sale or consump- tion in accordance with law — 1. It must be put up in legal packages ; _ 2. The package must have printed thereon or securely affixed a label with themanufactuier's name, the registered number of the factory, and the district and State, and if a wooden package, the manufacturer's name and place of manufacture, or the proprietor's name and his trade-mark, and the registered number of the manufactory, and the gross weight, the tare, and the net weight of each package, must be printed or marked on the 'box ; 234 U. S. IlfTBRKAL EEVEl«rUE LAWS. 3. Every package must have aflSxed and cancelled a proper stamp or stamps to indicate the weight and class of the tobacco for which payment of tax is made ; and 4. These stamps must lie affixed and cancelled in tlie mode prescribed ly the Commissioner. Any removal of manufactured tobacco for sale or consumption without a compliance on the part of the manufacturer with all of these conditions is a " removal otherwise than as provided by law," and subjects the manu- facturer to the forfeitures provided in section 69. Manufactured tobacco found outside of a manufactory or export bonded warehouse, except the same shall be in transit from the manufactoiy to a bonded warehouse, vrithout proper internal revenue stamps affixed to each package, is forfeited to the United States under section 70 ; and the person who removed the tobacco without proper stamps affixed and cancelled, and the person who uses or sells or offers for sale, or has in his possession such manufactured tobacco, becomes liable, on conviction, for the fines and penalties imposed by section 71. 13 I. R. R. 77. "Where the manufacturer inserts the name of the proprietor in the label instead of his own, it should read, " Manufactured for , at factory No. 1," &c. 10 I. R. R. 57. When a manufacturer of tobacco, snuff, or cigars uses one part of a building for a salesroom, and another part as a place of manufacture, he must properly pack and stamp his goods before removal to the salesroom. 9 I. R. R. 161. A manufacturer cannot cut his tobacco in one room of his store and re- tail it in an open box (whether previously stamped or not) in another room of the same store, except in the stamped packages or wrappers pro- vided by law. U. S. v. Rosenfleld, 9 I. R. R. 301. i Penalties Against Manufacturers. [Sec. 69. Ouiy 20, ises.) And he it further enacted, That any mannfacturer of tobacco or snuif who shall remove otherwise than as provided by law, or sell, any tobacco or snuff without the proper stamps denoting the tax thereon, or without having paid the special tax, or given bond as required by law, or who shall make false or fraudulent entries of manufactures or sales of tobacco or snuff, or who shall make false or fraudulent en- tries of the purcliase or sales of leaf tobacco, tobacco stems, or other material, or who shall affix any false, forged, fraudu- lent, spurious, or counterfeit stamp, or imitation of any stamp required by this act, to any box or package containing any to- bacco or snuff, shall, in addition to the penalties elsewhere pro- vided in this act for such offences, forfeit {a) to the United States a,ll the raw material and manufactured or partly manufactured tobacco and snuff, and all machinery, tools, implements, appa- ratus, fixtures, boxes, and barrels, and all other materials which shall be found in the possession of such person, in the manu- factory of such person, or elsewhere.] (a) It will be seen that this section provides for forfeiture by the manufac- turer to the government of the property therein named, in case he commits ETJIilUGS, DECISIONS, ETC. 235 any 'of the oflfences enumerated : 1. Removal of manufactured tobacco from the manufactory or place where it waa made otherwise than as pro- .vided by law; 2, To sell tobacco or snuff without the proper stamps denoting the tax ; 3. "Without the payment of a special tax as manufac- turer of tobacco ; 4. Without having given bond as required bylaw; 5. The making by the manufacturer of false or fraudulent entries of manufac- tures or sales of tobacco or snuff; 6. The making of false or fraudulent entries of the purchase or sales of leaf tobacco, tobacco stems, or other material; and, 7. The affixing. of any false, forged, fraudulent, spurious, or counterfeit stamp, or imitation of any stamp, to any box or package containiDg tobacco or snuff. The failure to do the things here specified, which the law requires to be done, or the doing of either of the things for- bidden to be done, forfeits to the United States the property of the manu- facturer as enumerated in said section 69. 13 1. R R. 77. The prepayment of tax by stamps on all tobacco, snuff, and cigars be- fore the goods are removed from the manufactory or place where they are madft, is the distinctive feature of the present law. 9 I. E. R. 43. Inspectors will not be required to il^spect tobacco, snuflF, oi- cigars when the proper tax-paid stamps are affixed to the packages and duly cancelled before removed from the manufactory. 10 I. R. R. 60. Absence of Stamp to be Evidence of Fraud. [Sec. YO. Guiy 20,1868.) And, he it further enacted, That the ab- sence of the proper stamp on any package of manufactured to- bacco or snuff shall be notice to all persons that the tax has not been paid thereon, and shall be jprima facie evidence of the non-payment thereof. And such tobacco or snuff sball be forfeited to the United States.] Penalty for Evasion of the Law. [Sec. 71. Ouiy 2°, ises.) And he it further enacted, That any person who shall remove from any manufactory, or from any place where tobacco or snuff is made, any manufactured tobacco or snuff without the same being put up in proper packages, or without the proper stamp for the amount thereon being affixed and cancelled, as required by law ; or if intended for export, with- out the proper warehouse stamp being affixed ; or shall use, sell, or offer for sale, or have in possession, except in the manufactory, or in a bonded warehouse, any manufactured tobacco or snuff, without proper stamps being affixed and cancelled ; or shall sell, or offer for sale, for consumption in the United States, or use, or have in possession, except in the manufactory or in a bonded warehouse, any manufactured tobacco or snuff on which only the warehouse stamp marking the same for export has been affixed, shall, on conviction thereof for each such offence, re- spectively, be fined not less than one thousand dollars nor more than five thousand dollars, and be imprisoned not less than six months nor more than two years. And any person who shall^afflx to any package containing tobacco or snuff any false, forged, fraudulent, spurious, or counterfeit stamp, or a 236 U. S. UTTEENAL RBVEKUB LAWS. stamp whicli has been before used, shall be deemed guilty of a felony, and on conviction shall be fined not less than one thou- sand dollars nor more than five thousand dollars, and im- prisoned not less than two years nor more than five years.] Stamps to be Destroyed on Emptying Packages. [Sec. T2. July =<>, ises.) And he itfvrther enacted, That when- ever any stamped box, bag, vessel, wrapper, or envelope of %ny kind, containing tobacco or snuff, shall be emptied, {a) the stamped portion thereof shall be destroyed by the person in whose hands the same may be. And any person who shall wilfully neglect or refuse so to do shall, for each such offence, on con- viction, be fined fifty dollars, and imprisoned not less than ten days nor more than six months. And any person who mail sell or give away, or who shall buy or accept from another, any such empty stamped box, bag, vessel, wrapper, or envelope of any kind, or the stamped portion thereof, shall, for each such offence, on conviction, be fined one hundred dollars and imprisoned not less than twenty days and not more than one year. And any manufacturer or other person who shall put tobacco or snun into any such box, bag, vessel, wrapper, or envelope, the same having been either emptied or partially emptied, shall, for each such offence, on conviction, be fined not less than one hundred nor more than five hundred dollars, and imprisoned for not less than one nor more than three years.] (rt) This section of the law applies not only to retail dealers who empty wooden packages by retailing their contents, but also to every person who purchases tobacco for his own use and empties such packages. He must destroy the stamped portion. The law in this respect will be sufiSciently complied with if the stamp is thoroughly mutilated or destroyed without destroying the particular part of the jar, box, bladder, bag, or other in- closure used in packing tobacco, snuff, or cigars. 10 I. E. R. 61. Bonded Warehouses. [Seo. 73. Quiy zo, 1868.) And ie itfurtJier enacted, That the Commissioner of Internal Eevenue, upon the execution of such bonds as he may prescribe, may designate and establish, at any port of entry in the United States, bonded warehouses for the storage of manufactured tobacco and snuff in bond, intended for exportation, selecting suitable buildings for such purpose to be recommended by the collector in charge of exports at such port, to be known as export bonded warehouses, and used exclusively for the storage of manufactured tobacco and snuff in bond. Every such warehouse shall be under the control of the collector of internal revenue in charge of exports at the port where such warehouse is located, and shall be in charge of EULIKGS, DECISIONS, ETC. 237 an internal revenue storekeeper assigned thereto by the Com- missioner of Internal Revenue. ISTo manufactured tobacco or snuff shall be withdrawn or removed (a) frorn any bonded warehouse without an order or permit from the collector in charge of exports at such port, which shall be issued only for the immediate transfer to a vessel by which such tobacco or snuff is to be exported to a foreign country, as hereinafter pro- vided, or after the tax has been paid thereon. And such ware- house shall be under such further regulations as the Commis- sioner of Internal Revenue may prescribe. Any manufactured tobacco and snuff may be withdrawn once, and no more, from an export bonded warehouse for transportation to any other port of entry in the United States where an export bonded warehouse for the storage of manufactured tobacco and snuff may have been established, and such manufactured tobacco and snuff so withdrawn shall, on its arrival at the second port of entry, be immediately warehoused in an export bonded warehouse for the storage of manufactured tobacco and snuff, from which it shall' be withdrawn only as provided by law.] (a) The law makes no provision for the removal of tobacco in bond without payment of tax, except such tobacco and snuff as are intended for export. When properly stamped they may be removed in bond from the manufactory without payment of the tax, to be transported directly to an export bonded warehouse established at any port of entry of the United States for the storage of manufactured tobacco and snuff intended for ex- portation. The goods may be withdrawn either for immediate export to a foreign country or after the tax has been paid thereon. 10 I. E. E. 67. An export bonded warehouse must be an entire building, with this ex- ception, that as cellars are generally unsuitable for storing tobacco, the cellar of such premises may, if separated from the store above so that there shall be no means of inside communication therewith and the only entrance to the cellar is from the street, be used for other business purposes on re- quest of the proprietor of the warehouse. Such a warehouse must be a first-class warehouse according to the classification of fire insurance com- panies of the city or place, or of the board of fire underwriters where such exist ; and when adjoining other buildings it must be separated therefrom by a brick or stone wall, in which no door or other opening can be per- mitted. No goods whatever can be stored in the bonded premises except bonded tobacco and snuff. Ko manufacturer of nor dealer in tobacco or snuff can be interested, directly or .indirectly, in such a warehouse as owner or proprietor, and the collector who forwards the application must testify to these facts. The party desiring to establish such a warehouse will make application to the collector in charge of exports at the port of entry, describing the premises, the location, and capacity of the same, accompanying the application with a sketch or diagram showing the relative position of the warehouse and surrounding buildings. The application must be accompanied by a certificate properly stamped, signed by the officers of two or more insur- ance companies, that the premises offered are suitable, and may be insured at the usual rates for like property. The collector will thereupon, by him- self or deputj, examine and inspect the premises ; and if, in his opinion, the location, construction, dimensions, and the means provided for securing 238 U. S. INTEBNAL REVBKUE LAWS. custody of tlie merchandise whicli may be stored in the same, are satisfac- tory, he will require the owner or applicant to give the proper bond. The penal sum in the bond should in no case be less than $10,000, and should always be sufficient to cover the tax on the total quantity of merchandise that can be stored in the warehouse at one time. The signers of this ware- house bond must be required to justify on Form 33, unless the ample suffi- ciency of principal and sureties is personally known to the collector who takes the bond. The bond having been properly executed and delivered to the col- lector, he will report in writing concerning the application, stating the fact of personal inspection of the premises by himself, or deputy, and giving his opinion as to the necessity, capacity, and security of the ware- house. No application for any export bonded warehouse will be granted un- less accompanied by the collector's certificate, that the number of ware- houses of that class already established in the district is not sufficient, and that the establishment of such additional warehouse is necessary for the storage of bonded tobacco and snuflF intended for export. The collector must also certify that the building or premises offered are satisfactory in respect to location, construction, dimensions, and the means provided for securing the safe custody of the merchandise which may be stored therein, and are in every particular in accordance with law and regulations. The collector having made his report, embracing the proper certificate as above directed, will mail the same to the Commissiomr, together with 1st. The application and diagram; 3d. The insurance certificates; and 3d. A certified copy of the bond, on which the collector will indorse his certi- ficate of the sufficiency of the penalty, and the responsibility of the obligors. If the application for a warehouse is approved by the Commissioner, due notice will be given to the collector, and he will in no case allow the warehouse to be used as an export bonded warehouse until such notice is received by him, nor until all tax-paid or free goods are removed there- from. Export bonded warehouses vdll be numbered consecutively in each district. A conspicuous sign must be placed over the front entrance of each, or upon the outer wall, so that it can be plainly seen and read from the street. Tne sign must show the number of the district, the number and name of the proprietor, and must in substance be as follows : Internal Revenue Export Bonded "Warehouse, District, No. ■ Proprietor. Neglect to furnish and keep this sign in proper place will be cause for the discontinuance of the warehouse. Assessors and collectors wiU de- signate each warehouse by its number on the warehouse record. Storekeepers are required to personally superintend the opening and closing of the doors and windows of the warehouses under their charge, and, unless by express permission of the Commissioner, to be in constant attendance at the warehouse from seven o'clock A. M. to sunset from April Ist to October 1st, and for the residue of the year from -eight A. M. to sun- set, except at the time necessary for dinner, not over one hour at noon, when the warehouse must be closed and locked. An office for the accommodation of the owner or occupant may be al- lowed iu export warehouses, but such office must be separated by a per- manent partition from the rest of the store, so that the owner shall have RULIKGS, DECISIONS, ETC. 239 no access to the goods except in the presence of the storekeeper, who, in such case, must be allowed such use of the office as may be necessary in the performance of his official duties. An office may be allowed for the use of the owner or occupant for the exhibition of samples of goods stored in such warehouse, which sample room must be separated by a partition from the rest of the store, and so secured as to prevent access to the goods in other rooms in such store. The said sample room must not be used for retail business or trade. Samples of tobacco and snuff stored in bond may be taken and ex- hibited in the sample room of the warehouse, according to the usages and customs of the tobacco trade ; and no sample packages shall be removed from the bonded premises without proper stamps affixed and cancelled. AU merchandise in an export bonded warehouse may be examined during the business hours of the warehouse by the owner or consignee, or by an agent, uponjhe written order of the owner or consignee. No samples can be taken, nor any goods be exhibited or examined, ex- cept under the immediate superintendence of the storekeeper, as well as that of the owner or proprietor ; and the storekeeper must make a memor- andum in the warehouse record of the date and description of such sam- pling opposite the entry of the lot thus sampled. Collectors will in no case allow tobacco and snnflf to be shipped in bond unless consigned to a collector, or his successor in office. "Whenever additional warehouses are established, or any are discontinued, collectors will be duly notified thereof. Export warehouses will be subject to such further rules as may be deemed necessary from time to tirrife for the safekeeping of the goods and protection of the revenue, and may be discontinued as bonded warehouses by the Commissioner when, in his opinion, the public interests may re- quire. In case of such discontinuance, if there should be any goods in store which it would be necessary to remove to another bonded ware- house, the expense of removal mnst be paid by the owner of the discontin- ued warehouse. Should the owner or occupant of any building designated as an export bonded warehouse fail or refuse to comply with any law regulating the storage of merchandise, or any rules or regulations issued by the Commis- sioner, or by the collector, for the safety of the goods stored, the collector will refuse permission to deposit goods in such store, and report the facts at once to the Commissioner for his action. The proprietors or occupants of export warehouses, on ten days' notice fi-om the collector, may be re- quired to renew their bonds, and if they fail so to do, no more goods will be sent to such warehouses, and those within the same will be withdrawn at theii' expense. The owner or occupant of any export warehouse will have the right to relinquish the business at any time, with the approval of the collector of the district, and on notice to the owners of the merchandise deposited therem, and paying the expenses of its removal to another export ware- house. Collectors will report the date and reasons for tl;e discontinuance of such warehouse to the Commissioner as soon as such discontinuance takes place. But the bonds are not to be cancelled or delivered up to the bondsmen, but are to be retained and filed by the collector in his office. Collectors may, however, when the facts justify it, give a certificate that the warehouse has been discontinued, and surrendered to the owner, and that, so far as known to the collector, the conditions of the bond have been filled. All labor on the goods deposited in these stores must be performed by the owner or proprietor of the warehouse under the supervision of the officer in charge of the same, and at the expense of the said owner or 240 TJ. S. KTEEJfAL REVEKUB LAWS. proprietor. All arrangements in regard to the rates of storage, and the price of labor, on goods deposited in export warehouses, must be made between the depositor and the owner or occupant of the store, but the Commissioner reserves the right to adjust these matters on appeal to him with due regard to the interests of all parties concerned. All amounts due for storage and labor must be collected by the owner or occupant of the store ; the collector looking only to the custody of the merchandise for the security of the revenue. Export ,. arehouses must be under the joint custody of the owner or proprietor and the storekeeper appointed for the purpose, and must be under internal revenue locks, prescribed by the Commissioner, in addi- tion to the looks of the owners, which latter must not open with the same key as the former. After stores or premises have been approved, and placed under internal revenue locks, the collector will retain the right of ordering additional fastenings, to be provided by and at the expense of the owners or occupants having charge of the premises. It is the duty of the storekeeper always to keep in his own possession the keys of the government locks in use on the warehouse under his charge, never suffering them to go out of his custody, except to the col- lectiir or to his successor in office, upon the order of the collector. Nor must he allow any goods to be received or delivered except in his presence, nor must he be absent from the warehouse while it is unlocked. He should also be always present when goods are inspected, and see that none are unlawfully abstracted or taken away. The owner or proprietor of the warehouse will in no case be allowed to have access to it except in the presence of the storekeeper or collector having charge thereof, and the storekeeper will promptly inform the collector of any infraction of the warehouse rules and regulations by the owner or proprietor, any inspector or other person. Any storekeeper who is absent from the warehouse under his charge, while it is unlocked, will be discharged. The storekeeper or officer in charge of each warehouse will keep a cor- rect account of all goods received into his store and delivered therefrom, specifying iu detail the date of receipt, original and warehouse marks and number; number and description of packages and contents; from what place received, and, when upon special order of the collector, the date thereof; also date of receipt of permit for delivery; date of delivery ; to whom delivered, and for what purpose as specifled in the permit or order for delivery ; and will enter in the warehouse book such further particulars as may be prescribed or found necessary for the indentiflcation of the pack- ages to insure the correct delivery thereof. The book for this purpose must be furidshed by the owner of the warehouse, and must be kept in such manner as to give all the information required by Form 121. The storekeeper will make daily returns in duplicate of the goods received into and delivered trom the warehouse to the collector in charge thereof, and to the Commissioner on Form 131. These returns on Form 131 must be full, explicit, and correct in all details. In the column " For what pur- pose " should be written the words " Consumption," " Exportation," or the name of the owner of the export warehouse to which the goods are con- signed, as the case may be. No goods are to be delivered ftom the ware- house by the storekeeper except upon the proper order or permit of the collector of the district. 10 I. R. R. 78. Transportation in Bond to Bonded Warehouse. [Sec. T4. (juiy 20, ises.) And he it further enacted, That mscan- factured tobacco and sniiflp maybe removed (a) in bond from the BULINGS, DECISIONS, ETC. 241 manufactory, without payment of the tax, to be transported di- rectly to an export bonded warehouse for the storage of manufac- tured tobacco or snuff established at a port of entry as hereinbe- fore provided ; and the deposit in and withdrawal from any bond- ed warehouse, the transportation and exportation of manufactur ed tobacco and snuff, shall be made under such rules and regula- tions and after making such entries and executing such bonds and giving such other additional security as may be prescribed by the Commissioner of Internal Revenue, which shall in all re- spects, so far as applicable, conform to the provisions of law amd regulations relating to distilled spirits to be deposited in or withdrawn from bonded warehouse or transported or ex- ported. All tobacco and snuff intended for export, before be- ing removed from the manufactory, shall have affixed to each package an engraved stamp indicative of such intention to be provided and furnished to the several coUectol'S, as in the case of other stamps, and to be charged to them and accounted for in the same manner ; and for the expense attending the pro- viding and affixing such stamps, twenty-five cents for each package so stamped shall be paid to the collector on making the entry for such transportation ; but the provisions of this section shall not limit the time for tobacco or snuff to remain in bond.] (as) The party desiring to transport manufactured tobacco or snuflF from a manufactory to an export bonded warehouse will give notice of his inten- tion to the collector of the district in which the manufactory is situated, who wUl thereupon detail an inspector of tobacco to 'inspect, weigh, and mark the packages. The inspector will examine each package carefully, and see that the contents, are such as the law requires. He will also see that each wooden package containing fine-cut chewing tobacco or caven- dish, plug, or twist tobacco has printed or marked thereon the manufac- turer's name and place of manufacture, or the proprietor's name and trade- mark, and the registered number of the manufactory. These marks and the label required by section 68 must be placed thereonby the manufacturer himself, or at his expense. The inspector will himself ascertain the gross weight, tare andnet weight, and mark each upon the said wooden package, together with his own name and title, date of inspection, and collection district. If the packages are other than the above described wooden ones, the inspector will examine them careMly, and also see that each package has affixed thereto the label required by section 68. In either case he will see that the export stamp is affixed to each pack- age and cancelled, unless several small packages like caddies or papers of tobacco are put up in one package, in which case the export stamp will be affixed to the outer case or cask ; and the inspector will also mark his brandupon such outer case, with date of inspection, collection, district, and kind of contents. The affixing and cancelling of the export stamp will be done by the manufacturer, or at his expense. When the case contains other than wooden packages, the inspector will, in addition to the fore- going, mark upon it the gross weight, tare, and net weight, which must also be stated in his report of inspections. ■The collector will deliver to the inspector an order in triplicate on Form 16 242 V. S. INTEENAIi EBVBlsTJE LAWS. A, upon complying with which the inspector will make a certiflcate of his inspections on each copy of the order, and leaving one copy with the owner of the goods, he will deliver the other copies to the collector. The manu- facturer upon receiving this certiflcate wiU endorse upon it his entry for transportation from the manufactory to an export bonded warehouse. In the blank space of the entry after the words " to be conveyed by," the ap- plicant must describe the entire route to be taken, stating, where trans- portation by land is intended, the name of the railroad or other transporta- tion company to which the goods are first to be delivered ; and, When transportation by water is intended, the name of the line or company, .and the name of the particular vessel, or steamer, to which the goods are to be delivered, must be given. * At the time of tiling the entry with the collector, the applicant is re- quired to pay to the collector the sum of 35 cents for each package stamped as required by law. Each inspector will be entitled to receive from the manirfacturer or owner a fee of five cents per package for inspecting, weighing, and marking tobacco or snuff at the manufactory or in export warehouse unless otherwise specially prescribed by the Commissioner. 10 I. R. R. 67, 186. For regulations, see 10 I. R. R. 67, 186. , Stamps to be Affixed by Actual Manufactnrer. [Sec. T5. (July =o, i868.) And ie it further enacted, That in all cases where tobacco orsnuff of any description is manufactnred, in whole or in part, upon commission or shares, or where the material from which any such articles are made, or are to be made, is furnished by one person and made or manufactured by another, or where the material is furnished or sold by one person with an understanding or agreement with another that the manufactured article is to be received in payment therefor or for any part thereof, the stamps required by law shall be fixed by the actual maker or manufacturer before the article passes from the place of making or manufacturing. And in case of fraud on the part of either of said persons in respect to said* manufacture, or of any collusion on their part with intent to defraud the revenue, such material and manufactured arti- cles shall be forfeited to the United States ; and each party to such fraud or collusion shall be deemed guilty of a misde- meanor, and, on conviction, be fined not less than one hundred dollars nor more than five thousand dollars, and imprisoned for not less than six months nor more than three years.] Books to be Kept by Dealers. [Sec. Y6. (July =0, ises.) And te it further enacted, That every dealer in leaf tobacco shall enter daily in a book [a) kept for that purpose, under such regulations as the Commissioner of Internal Kevenue may prescribe, the number of hogsheads, cases, and poimds of leaf tobacco purchased by him, and of whom purchased, and the number of hogsheads, cases, or pounds sold by him, with the name and residence, in each instance, of EUIilUGS, DEOISIOKS, ETC. 243 the person to whom sold, and if shipped, to whom shipped, and to what district. Such book shall be kept at his place of business, and shall be open at all hours to the inspection of any assessor, collector, or other revenue officer ; and any dealer in leaf tobacco who shall neglect or refuse to keep such book shall be liable to a penalty of not less than fire hundred dollars, and on conviction thereof shall be fined not less than one hun- dred dollars nor more than five thousand dollars, and im- prisoned not less than six months nor more than two years.] (a) Dealers must keep a book according to Form 77. 10 I. R. R. 59. Auctioneers selling leaf tobacco must keep a book according to Form 77. 10I.E. R.41. Any person who keeps leaf tobacco for sale ia a dealer, and a single sale is sufficient to fix his character as such. In an action of debt under this section thfe jury cannot find a greater sum than five hundred dollars. U. S. V. Damiani & Co. 11 1. B. R. 5. If the dealer delegates the duty of keeping the books to another person and such person neglects it, this will not excuse the dealer, and he must be held responsible for such omission. U. 8. v. Auja, 10 I. R. R. 53. Stamps on Imported Tobacco. [Sec. 77. amy 20, ises.) And he it further enacted, That from and after the passage of this act, and until the first day of October, eighteen hundred and sixty-eight, all manufactured tobacco and snuff (not including cigars) imported from foreign countries shall be placed by* the owner, importer, or consignee thereof in a bonded warehouse of the United States at the place of importation, in the same manner and under rules as pro- vided for warehousing goods imported into the United Spates, and shall not be withdrawn from such warehouse, nor be entered for consumption or transportation in the United States prior to the said first day of October, eighteen hundred and sixty-eight. All manufactured tobacco and snuff (not including cigars) im- ported from foreign countries, after the passage of this act,, shall, in addition to the import duties imposed on the same,, pay the tax prescribed in this act for like kinds of tobacco and snuff manufactured in the United States, and have the same stamps respectively affixed. Such stamps shall be affixed and cancelled on all such articles so imported by the owner or im- porter thereof, while such articles are in the custody, of the proper custom-house officers, and such articles shall not pass out of the custody ofi such officers until the stamps have been affixed and cancelled. Such tobacco and snuff shall be put up in packages, as prescribed in this act for like articles manufac- tured in the United States before such stamps are affixed ; and 244 U. S. IKTBBNAL REVENUE LAWS. the owner or importer of such tobacco and snuif shall be liable to all the penal provisions of this act prescribed for manufac- turers of tobacco and snuff manufactured in the United States. "Where it shall be necessary to take any such articles, so im- ported, to anyplace for the purpose of repacking (a), aifixing, and cancelling such stamps, other than the public stores of the Uni- ted States, the collector of customs of the port where such arti- cles shall be entered shall designate a bonded warehouse to which such articles shall be taken, under the control of such customs officer as such collector may direct. And any officer of customs who shall permit any such articles to pass out of his custody or control without compliance by the owner or im- porter thereof with the provisions of this section relating there- to, shall be deemed guilty of a misdemeanor, and shall, on conviction, be fined not less than one thousand dollars nor more than five thousand dollars, and imprisoned not less than six months nor more than three years.] (a) The law makes no provision for repacking domestic tobacco or snuff in bond. The original packages must be of the description and limitation prescribed by law. 10 I. R. R. 79. Inventory to be Made— Packag'es to be Stamped. [Sec. 78. CJuly 20, iSaS; as amcDded December 22, ises). Andhs ii fuT- iher enacted, That from and after the passage of this act it shall be the duty of every dealer in manufactured tobacco, having on hand more than twenty pounds, and every dealer in snuff, having oa hand more than ten pounds, to imme- diately make a true and correct inventory of the amount of such tobacco and snuff', respectively, under oath or affir- mation, and to deposit such inventory with the assistant as- sessor of the proper division, who shall immediately return the same to the assessor of the district, who shall immediately there- after make an abstract of the several inventories, filed in his office, and transmit such abstract to the Commissioner of Internal Kev- •enue, and a like inventory and return shall be made on the first day of every month thereafter, and a like abstract of inventories shall be transmitted while any such dealer has tobacco or snuff remaining on hand manufactured in the United States, or imported prior to the passage of this act, and not stamped. Mter the fifteenth day of February, eighteen hundred and six- ty-nine, all smoking, fine-cut chewing tobacco, or snuff, and after the first day ot July, eighteen hundred and sixty-nine, all other manufactured tobacco of every description, shall be taken and deemed as having been manufactured after the passage of this act, and shall not be sold or offered for sale unless put up BULIN&S, DECISIONS, ETC. 245 in packages (a) and stamped as prescribed by this act, except at retail by retail dealers from wooden packages stamped as ■ pro- vided for in this act ; and any person who snail sell, or offer for sale, aft^r the fifteenth day of February, eighteen hundred and sixty-nine^ any smoking, fine-cut chewing tobacco, or snuff, and after the first day of July, eighteen hundred and sixty-nine, any other manufactured tobacco not so piit up in packages and stamped, shall, on conviction, be fined not less than five hundred dollars nor more than five thousand dollars, and imprisoned not less than six months nor more than two years.] (a) Dealers in manufactured tobacco must sell in packages, each pack- age bearing the properly cancelled stamp. Ketail dealers are authorized to sell manufactured tobacco at retail from wooden packages legally stamped, or cigars &om boxes packed, stamped and branded in the manner pre- scribed by law. The retail dealer must not withdraw the goods from the stamped package until the sale is made. The stamp upon the package from which he is retailing goods is prima facie evidence that the tax on such goods has been paid. 10 I. R. R. 61. Snuflf may be retailed from bladders or jars stamped according to law. 9 I. R. R. 68. When the marshal sella forfeited tobacco, snuff, or cigars, the purchaser must affix the proper stamps. 9 I. R. R. 188, 203 ; 10 I. R. R. 10, 33. Penalty for Fraudulent Representations on Sales of Tobacco or Snuff. [Sec. 79. (juiy 20, ises.) Andie it further enacted, That SL^aj person who shall, after the passage of this act, sell, or offer for sale, any manufactured tobacco or snuff, representing the same to have been manufactured and the tax paid thereon prior to the passage of this act, when the same was not so manu- factured, and the tax not so paid, shall be liable to a penalty of five hundred dollars for each offence, and shall be deemed guilty of a misdemeanor, and, on conviction, shall be fined not less than five hundred dollars nor more than five thousand dol- lars, and shall be imprisoned not less than six months nor more than two years.] Sale of Tobacco or Snuff in Bond on Passage of this Act. [Sec. 80. (July m, isfis.) And le it further enacted, That all manufactured tobacco and snuff, manufactured prior to the passage of this act, and held in bond at the time of its passage, may be sold for consumption in the original . packages, with the proper stamps for the amount of the tax thereon aflixed and cancelled as required by law ; and any person who shall, after the passage of this act, offer for sale any tobacco or snuff, in packages of a different size from those limited and prescribed by this act, representing the same to have been held in bond ^46 U. S. ISTTERNAL EEVENXIE LAWS. at the time of the passage of this act, when the same was not so held in bond, shall, on conviction, be fined fifty dollars for each package in respect to which such offence shall be com- mitted : Provided^ That after the first day of January, Anno Domini eighteen hundred and sixty-nine, no such tobacco or snuff shall be sold or removed for sale or consumption from any bonded warehouse, unless put up in packages and stamped as provided by this act.] Tax on Cigars. [Sec. 81. a^iy =0, isss.) And he %t further enacted. That upon cigars which shall be manufactured and sold, or removed for consumption or use, there shall be assessed and collected the following taxes, to be paid by the manufacturer thereof: On cigars of all descriptions, made of tobacco or any substi- tute tlierefor, five dollars per thousand ; on cigarettes weighing not exceeding three pounds per thousand, one dollar and fifty cents per thousand ; when weighing exceeding three pounds per thousand, five dollars per thousand. And the Commissioner of Internal Revenue may prescribe such regulations for the inspec- tion of cigars, cheroots, and cigarettes, and the collection of the tax thereon, as shall, in his judgment, be most effective for the prevention of frauds in the payment of such tax.] Manufacturers of Cigars to Furnisli Statement, Give Bonds, etc. [Sec. 82. (juiy 20, ises.) And he it further enacted. That every person before commencing, or, if already commenced, before continuing, the manufacture of cigars, shall furnish, without previous demand therefor, to the assistant assessor of the division a statement {a) in duplicate, subscribed under oath or affirmation, accurately setting forth the place, and if in a city, the street and number of the street where the manufacture is to be carried on ; and if the same shall be manufactured for, or to be sold and delivered to any other person, the name and residence and business or oc- cupation of the person for whom the cigars are to be manu- factured, or to whom to be delivered ; and shall give a bond in conformity with the provisions of this act, in such penal sum as the assessor of the district may require, not less than five hundred dollars, with an addition of one hundred dollars for each person proposed to be employed by him in making cigars, conditioned that he will not employ any person to manufacture cigars who has not been duly registered as a cigar-maker ; that he will not engage in any attempt by himself, or by collusion with others, to defraud the government of any tax on his manu- factures ; that he will render truly and correctly all the returns, BULIKGS, BBOISIOKS, ETC 247 statements, and inventories prescribed ; that whenever he shall add to the number of cigar-makers employed by him, he will immediately give notice thereof to the collector of the district ; that he will stamp, in accordance with law, all cigars manufac- tured by him before he offers the same, or any part thereof, for sale, and before he removes any part thereof from the place of manufacture ; that he will not knowingly sell, purchase, expose, or receive for sale any cigars which have not been stamped as required by law ; and that he will comply with all the require- ments of law relating to the manufacture of cigars. The sura of said bond may be increased from time to time, and additional sureties required at the discretion of the assessor, or under the instructions of the Commissioner of Internal Kevenue. Every cigar manufacturer shall obtain from the collector of the district, who is hereby required to issue the same, a certificate setting forth the number of cigar-maters for which the bond has been given, which certificate shall be posted in a conspicuous place within the manufactory ; and any cigar manufacturer who shall neglect or refuse to obtain such certificate, or to keep the same posted as hereinbefore provided, shall, on conviction, be fined one hundred dollars. Any person manufacturing cigars of any description without first giving bond as herein required, shall, on conviction, be fined not less than one hundred dollars nor more than five thousand dollars, and imprisoned not less three months nor more than five years. Cigarettes and cheroots shall be held to be cigars under the meaning of this act.] (a) The sworn statement must be furnished by the manufacturer in du- plicate on Form 36 to the assistant assessor. As soon as received the as- sessor will transmit one of these statements to the collector, together with a list of the names of all cigar manufacturers and the amount of each one's bond as determined by him. Upon the filing of the bond the collector will issue to every cigar manufacturer a certificate, Form 41. 10 I E R 66. ■ ■ Manufacturers must give bond for all persons whom they employ in making cigars, whether as strippers, bunohers, or persons technically known as cigar-makers. 11 1. R. R. 10. Signs of Cigar Manufacturers. [Sec. 83. (July =o, isss.) And le it further enacted, That within thirty days after the passage of this act every ci^ar manufacturer shall place and keep on the side or end of the building within which his buisness is carried on, so that it can be distinctly seen, a sign with letters thereon not less than three inches in length, painted in oil colors or gilded, giving his full name and business. Any person neglecting to comply with the requirements of this section shall, on conviction, be fined not less than one hundred dollars nor more than five hundred dollars.] 248 tJ. S. IJTTERNAIi EBVEKUE LAWS. Eecord of Cigar Manufacturers aud Cigar Manufactories. [Sec. 84. Quiy =°, ises.) And he it further enacted. That it shall be the duty of every assistant assessor to keep a record {a) in a book to be provided for the purpose, to be open to the inspection of any person, of the name and residence of every person engaged in the manufacture of cigars in his division, the place where such manufacture is carried on, and the number of the manufactory, together with the names and residences of every cigar-maker employed in his division, and the assistant assessor shall enter in said record, under the name of each manufacturer, an abstract of his inventories and monthly re- turns ; and each assessor shall keep a similar record for the dis- trict, and shall cause the several manufactories of cigars in the district to be numbered consecutively, which number shall not thereafter be changed.] {a) The numbering of cigar manufactories must not be confounded with the similar requirements in the case of tobacco and snuff manufac- tories, but a separate numbering of each is required. 10 I. R. R. 66. Mode of Packing Cigars* [Sec. 85. auiv 20, ises.) And he it further enacted, That from and after the passage of this act all cigars shall be packed in boxes, not before used for that purpose, containing respect- ively twenty-five, fifty, one hundred, two hundred and fifty, or five hundred cigars each ; and any person who shall sell, or oflFer for sale, or deliver or oflFer to deliver, any cigars in any other form than in new boxes as above de- scribed, or who shall pack in any box any cigars in excess of the number provided by law to be put in each box, respectively, or who shall falsely brand any box, or shall affix a stamp on any box denoting a less amount of tax than that required by law, shall, upon conviction, for any of the above- described offences, be fined for each such offence not less than one hundred dollars nor more than one thousand dollars, and be imprisoned not less than six months nor more than two years : Provided, That nothing in this section shall be construed as preventing the sale of cigars at retail by retail dealers who have paid the special tax as such from boxes packed, stamped, and branded in the manner prescribed by law.] Retail dealers are allowed to retail cigars from boxes packed, stamped and branded in the manner prescribed by law. They cannot retail cigars from show-cases. The presence of the revenue stamp is necessary to give currency to the goods. 10 I. R. R. 66. Cigar Manufacturers to Furnish Statements, Keep Books, etc. [Sec. 86. auiy^, ises.) And he it further enacted, That every person now or hereafter engaged in the manufacture EULINGS, DECISIONS, ETC. 249 of cigars, shall make and deliver to the assistant assessor of the division a true inventory, in form prescribed by the Commissioner of Internal Revenue, of the quantity of leaf tobacco, cigars, stems, scraps, clippings, and waste, and the number of cigar-boxes and the capacity of each box, held or owned by him on the first day of January of each year, or at the time of commencing and at the time of con- cluding business, if before or after the first of January, set- ting forth what portion of said goods, and what kinds, were manufactured or produced by him, and what vsrere pur- chased from others, which inventory shall be verified by his oath or afiirmation indorsed on said inventory ; and the assist- ant assessor shall make personal examination of the stock suf- ficient to satisfy himself as to the correctness of the inventory, and shall verify the fact* of such examination by oath or affirma- tion taken before the assessor, also to be indorsed on the invent- ory ; and every such person shall enter daily in a book, («) the form of which shall be^ prescribed by the Commissioner of In- ternal Revenue, an accurate account of all the articles aforesaid purchased by him, the quantity of leaf tobacco, cigars, stems, or cigar boxes, of whatever description, manufactured, sold, con- sumedj or removed for consumption or sale, or removed from the place of manufacture ; and shall, on or before the tenth day of each and every month, furnish to the assistant assessor of the division a true and accurate abstract from such book of all such purchases, sales, and removals made during the month next pre- ceding, which abstract shall be verified by his oath or afiirmation ; and in case of refusal or wilful neglect to deliver the inventory, or keep the account, or furnish the abstract aforesaid, he shall, on conviction, be fined not less than five hundred dollars nor more than five thousand dollars, and imprisoned not less than six months nor more than three years. It shall be the duty of any dealer in leaf tobacco or material used in manufacturing cigars, on demand of any Officer of In- ternal Revenue authorized by law, to render to such officer a true and correct statement, verified by oath or affirmation, of the quantity and amount of such leaf tobacco or materials sold or delivered to any person or persons named in such demand ; and in case of refusal or neglect to render such statement, or if there is cause to believe such statement to be incorrect or fraud- iilent, the assessor shall make an examination of persons, books, and papers, in the same manner as provided in this act in rela- tion to frauds and evasions.] («) Books must be kept by manufacturers according to Form 73. Their abstracts or monthly returns must be made on Form 73. 10 I. K. B. 66. A cigar manufacturer who has on hand stems or waste which are not 250 TJ. S. INTEEXAIj REVBIiroB LAWS. worth the trouble of keeping and who desu-es to destroy the same may do so in the presence and under the supervision of an internal revenue officer, and the assessor wUl give him credit upon the proper books for the amount destroyed. 10 I. B. R. 153. * The return must include sales of cigars that have been bought as well as of those that have been manufactured by the manufacturer. U. S. v. Cohn, 7 I. R. R. 69; U. S. v. Hoym, 7 I. R. B. 69. Stamps for Cigars. [Sec. 87. auiy =o, isea.) And he it further enacted, That the Commissioner of Internal Revenue shall cause to be prepared, for payment of the tax upon cigars, suitable stamps, {a) denot- ing the tax thereon ; and all cigars shall be packed in quantities of twenty-five, fifty, one hundred, two hundred and fifty, and five hundred, and all such stamps shall be furnished to collectors requiring the same, who shall, if there be any cigar manufactur- ers within their respective districts, keep on hand at all times a supply equal in amount to two months sales thereof, and shall sell the same only to the cigar manufacturers who have given bonds and paid the special tax, as required by law, in their dis- tricts respectively, and to importers of cigars who are reqtiired to affix the same to imported cigars in the custody of customs officers and to persons required by law to affix the same to cigars on hand on the first day of January, Anno Domini eighteen hundred and sixty -nine; and every collector shall keep an ac- count of the number, amount, and denominate yalues of the stamps sold by him to each cigar manufacturer, and to other persons above described : Provided, That from and after the passage of this act, the duty on all cigars imported into the United States from foreign countries shall be two dollars and fifty cents [per] pound, and twenty-five per centum ad valorem.] (a) Stamps are furnished to collectors to be sold only to cigar manu- facturers who have given bonds and paid the special tax in their districts respectively. 10 I. R. R. 66. Labels for Cigars. [Sec. 88. Q^iy 20, ises.) And ie it further enacted. That every manufacturer of cigars shall securely affix, by pasting on each box containing cigars manufactured by or for him, a label (a) on which shall be printed, together with the manufacturer's name, the number of his manufactory, and the district and State in which it is situated, these words : " Notice. — The manufacturer of the cigars herein contained has complied with all the requirements of law. Every person is cautioned, under the penalties of law, not to use this box for cigars again." BULINGS, DECISIONS, ETC. 251 Any manufacturer of cigars who shall neglect to affix such label to any box containing cigars made by or for him, or sold or offered for sale by or for him, or any person who shall re- move any such label, so affixed, from any such box, shall, upon conviction thereof, be fined fifty dollars for each box in respect to which such offence shall be committed.] (a) The law makes no provision for the removal of cigars in bond, or to a bonded warehouse, either for export or consumption. All cigars re- moved from the place of manufacture must be stamped. 10 I. E. R. 66. Name on Cigar lalbels. [Sec. 1. (April lo, 1869.) That section eighty-eight be amended so that either the proprietor's name or the manufacturer's narne shall be printed on the label for cigars provided for in said section.] Penalty for Fraudulent Eemoval of Cigars. [Sko. 89. (July 20, 1868.) And ie it further enacted, That all ci- gars which shall be removed from any manufactory or place where cigars are made, without the same being packed in boxes as re- quired by this act, or without the proper stamp thereon denoting the tax, or without burning into each box, with a branding iron, the number of the cigars contained therein, and the name of the manufacturer, and the number of the district, and the State, or .without the stamp denoting the tax thereon being properly *affixed and cancelled, or which shall be sold or offered for sale not properly boxed and stamped, shall be forfeited to the United States. And any person who shall commit any of the above-described offences shall, on conviction, be fined for each such offence not less than one hundred dollars nor more than one thousand dollars, and imprisoned not less than six months nor more than two years. And any person who shall pack cigars in any box bearing a false or fraudulent or counterfeit stamp, or who shall remove or cause to be removed any stamp denoting . the tax on cigars from any box, with intent to use the same, or who shall use or permit any other person to use any stamp so removed, or who shall receive, buy, sell, give away, or have in his possession any stamp so removed, or who shall make any .other fraudulent use of any stamp, or stamped box intended for cigars, or who shall remove from the place of manufacture any cigars not properly boxed and stamped as required by law, shall be deemed guilty of a felony, and, on conviction, shall be fined not less than one hundred dollars nor more than one thousand dollars, and imprisoned not less than six months nor more than three years.] 252 TJ. S. INTEBNAIi REVENUE LAWS. Absence of Stamp ETidence of Fraud. [Sec. 90. (juiy 20, ises.) And he it fv/rther enacted, That the absence of the proper revenue stamp on any box of cigars sold, or offered for sale, or kept for sale, shall be notice to all persons that the tax has not been paid thereon, and shall be prima facie evidence of the non-payment thereof; and such cigars shall be forfeited to the United States.] Manufacture of Cigars on Commission. [Sec. 91. a. Johnson, 3 Nev. 16, 35 ; Wayman ». Torreson, 4 Nev. 134. The omission to put the proper stamp upon any instrument should be deemed presumptive evidence of an intent to evade the statute, but nothing more. It is to be presumed that the pirties were aware of the re- quirements of the statute. Thus knowing the law, their omission to obey it must, in the absence of any explanations, be deemed wilful and with in- tent to evade its requirements. This view is in accordance with the principle that every person is presumed to contemplate the ordinary and natural consequences of his own acts. The act of omitting the stamp was KTJLTNGS, DECISIONS, ETC. 317 unlawful and injurious to the government, and the presumption is that it was so intended. It comes within the class of cases in which the proof of justification or excuse lies with the party transgressing ; and on failure thereof the law implies criminal intent. Howe ». Carpenter, 53 Barb. 383 i Miller ii. Larmon, 38 How. Pr. 417; Beebe v. Hutton, 47 Barb. 187 ; U. S. V. Learned et al. 11 I. R. R. 149 ; Baird i> Pridmore, 31 How. Pr. 359 ; Harper v. Clark, 17 Ohio, 190. Contra. If it is objected that an instrument is void by reason of its not being stamped, the objector must show that the omission of the stamp was with intent to evade the revenue law. The mere failure or omission to affix the stamp is not evidence of such intent. New Haven and Northampton Co. o. Quintard, 6 Abb Pr. 138; Dudley «. Wells, 55 Me. 145 ; Corry National Bank v. Rouse, 8 I. R. R. 31 ; Sawyer et al. v. Parker, 57 Me. It is competent for a party to show that the absence or insufficiency of the stamp arose from inadvertence or mistake, and without any intent to evade the provisions of the revenue laws. Beebe v. Hutton, 47 Barb. 187- Contra, Maynard ®. Johnson, 3 Nev. 35. An unstamped instrument is not legally available to a party until the proper stamp is afflxecJ. Beebe v. Hutton, 47 Barb. 187 ; Harper v. Clark, 17 Ohio, 190. Contra, Sohemerhom v. Burgess, 38 How. Pr. 138. When an instrument is issued by an agent of a corporation with the intent to evade the provisions of the law, such unlawful intent may be im- puted to the corporation, and the corporation may be held criminally re- sponsible for the unlawful act. U. S. v. Bait. & Ohio R. R. Co., 8 I. R. R> 148. In the absence of any evidence showing the contrary, it will be pre- sumed that a lost instrument was properly stamped. Thayer v. Barney, 13 Minn. 503. Upon indictments for forgery, the existence of a stamp upon the forged instrument need not be averred or proved. State v. Haynes, 6 Cold. 550. The declaration need not allege that the deed upon which the suit is brought was stamped. It is well settled that in pleading a deed, it is not necessary to aver that it was signed or sealed or attested ; but that the allegation that a party made his deed, imported all these requisites with- out which there would have been no deed. If, then, the law has created a new requisite and made a stamp an essential part of the instrument, the allegation that a party made the instrument will now include the stamp, by the same reasoning that it before included the seal. If the stamp is not essential to the validity of the deed, it is not necessaiy to allege that the deed was stamped, because the deed is valid without it. Jones ». Davis, 33 Wis. 431. When a copy of an instrument is affixed to a declaration and thus made a part of it, the copy need not show that the original was stamped. Hitchcock i>. Sawyer, 39 Vt. 413 ; Trull ». Moulton, 13 Allen, 896; Hallock ». Jaudin, 34 Cal. 167. 318 U. S. INTEENAL KEVBNUB LAWS. In order to defeat a recovery upon an unstamped instrument, it must appear not only that the note was imstamped, but that the stamp has been fraudulently omitted. Hence the objection cannot be taken by de- murrer. Trull 9. Moulton, 12 Allen, 396 ; Hallock i>. Jaudin, 34 Oal. 167. The objection that letters of administration are not stamped cannot be made by demurrer, because the stamp may either be affixed to the admin- istration 'bond or the letters of administration, and, therefore, although there is no stamps affixed to the letters, it does not necessarily foUow that the letters are invalid. By demurrer the facts are taken to be true, and since the letters would be as valid if the bond was stamped as if the stamp had been afiBxed to the letters, there is no necessary defect in the pleading. If the defendant wishes to question the validity of the letters of adminis- tration, he should do so by a plea ne ungues administrator. Miller ». Hen- derson, 24 Ark. 344. A plea should allege not only that the instrument is unstamped, but that the stamp was omitted with an intent to evade the provisions of the statute. Hitchcock v. Sawyer, 39 Vt. 412 ; New Haven & Northampton Co. ■». Quintard, 6 Abb. Pr. N. S. 138 ; Latham v. Smith, 44 HI. 25. Whilst at the common law a party could not set up his own fraud or violation of law as a defence or protection to himself, there is no question but that when a statute declares an instrument void for any reason, the defendant who is sued upon such instrument may show the facts that make it void, although in so showing he also shows that he has been guUty of some crime, fraud, or violation of a penal statute. In such case, it is the policy of the law to prevent some particular practice, such as usury, gaming, violation of the revenue law, etc. To effect that object more completely, the law allows the defendant, to plead and prove his own wrongful act, not so much to protect the defendant as to carry out the policy of the law in suppressing illegal acts. There is no doubt but that a defendant may plead and prove the want of a stamp or proper stamps to the instrument sued on, if the facts as pleaded and proved make the in- strument invalid. Maynard v. Johnson, 2 Nev. 17 ; Jacquin ». Warren, 40 HI. 4S9; McBride ». Doty, 28 Iowa, 123. The affixing of the stamp is the last act essential to the validity of the instrument, and is as much the act of the maker as the signature. The law will not presume that the holder would affix and cancel a stamp any more than that he would attach the maker's name. If the stamp is attached and cancelled without authority, it cannot give validity to the instrument. Without the stamp the instrument is as incomplete as if it lacked the maker's signature, and to attach and cancel it without authority would be as ineffective as to write the maker's name to the instrument without au- thority. Latham «. Smith, 45* HI. 25. Where a statute prohibits an act to be done under a certain penalty, though no mention is made of Indictment, the party offending may be in- dicted and fined to the amount of the penalty. If a statute enjoins an act to be done without pointing out any mode of punishment, an indictment ETTLINGS, DECISIONS, ETC. 319 ■will lie for disobeying the injunction of the legislature. But where it is merely provided that, if a person do a certain act, hf shall forfeit a certain sum to be recovered by an action of debt, no indictment can be supported. U. S. v. Crosby et al. 36 Law Eep. 33 ; U. S. «. Bait. & Ohio R. R. Co., 8 I. R. R. 148 ; U. S. «. Learned et al. 11 L R. R. 149. No man has a right to set up a construction of the law for himself, and then plead it in justification of his violation of the law. When a party knows of the existence of the state of facts which make an instrument liable to a stamp and yet believes that the instrument is not so liable in point of law, such ignorance of the law will not excuse him. "With a full knowledge of all the facts before him, and of the consequences of a viola- lation of the law, he assumes to construe the law and the instrument for himself, and, in case of misconstruction, he must abide the consequences. U. S. V. Learned et al. 11 L R.R. 149. The rule in England is that if there is nothing on the face of the in- strument to show that it was post-stamped, it, being negotiable, wiU be good in the hands of an indorser or holder for value who received it in ignorance of the fact that it was not stamped until after it was issued. The reasoning in favor of the riile in England is fair, just, and legitimate. It accords with the duty of the maker, protects the government, and, in consonance with the principles of the law-merchant, protects the holder of such paper from those defences that do not arise upon its face. Black- well v. Denie, 33 Iowa, 68 ; Latham v. Smith, 45 111. 35. Contra, Pope v. Bums et al. 4 L R. R. 133. If the consideration of an vmstamped note is valuable, the payee may sue upon that consideration. If the note is tainted with illegality from any cause and invalid, and the plaintiff is no way connected with the infirmity thus affecting it, this does not in legal effect amount to a pay- ment of the plaintiff's claim for the consideration thus given to the defend- ant. The case in this particular stands upon the same ground upon which the cases are put and rest where it is held that payment of a debt in coun- terfeit bills or in the worthless bills of a broken bank is in legal effect no payment. In aU such cases a party may fall back, under a declaration adapted to the facts, upon the original consideration, and recover upon the liability arising therefrom. Wilson v. Carey, 40 Vt. 179; Israel «. Redding, 40 111. 363 ; Jacquin v. Warren, 40 111. 459 ; Wayman v. Torre- son, 4 Nev. 134. The language of the act is that the instrument shall be void and of no effect. It does not declare the contract invalid. Applying the well-known rule that the statute being penal in its nature is to be strictly construed, there can be no warrant for so construing it as to include the contract as well as the instrument. The writing itself can neither give a right nor create an obligation— it cannot be used as an instrument of evidence, but the original contract remains unaffected; and if, by the rules of law, it is 320 U. S. INTERNAL EEVENXJE LAWS. such as may be shown by parol, the attempt to reduce it to writing will not exclude the evidence. It would not be proper to prove by parol the contents of the invalid writing nor to prove a contract which the law re- quires to be in writing. McAfferty v. Hale, 24 Iowa, 355. A subsequent valid agreement may be proved even though there is a prior unstamped memorandum. Sykes v. Bates, 26 Iowa, 521. Although an unstamped instrument cannot be read in evidence per ae, yet a witness may refer to it to refresh his memory. But when it is thus received, it has to be taken as a whole as well for one party as the other. Israel*. Redding, 40 In. S62. A representation that a note would not be valid until the maker should affix a stamp, is not such a misrepresentation as will make the note void for fraud. The mater could and was bound to judge of the legal import of such an instrument. Latham «. Smith, 40 HI. 25. A court of equity will not interfere to declare an unstamped instru- ment void and cancel it. Harshaw o. McCombs, 63 N. C. 75. An action can be maintained upon a note given for property the grantor of which fraudulently understated the actual consi'deration and improperly stamped the deed therefor with the intent to evade the pro- visions of the law and pass an imperfect title. Lambert v. Whitelock, 39 Ind. 26. A party who has been indemnified by a bond against a mortgage and has been compelled to pay the same, may maintain an action upon the bond even though a promissory note which formed a part of the payment was not stamped. Whether the note which has thus been accepted in payment can be collected or not, either by reason of its inherent defects or the insolvency of the maker, is immaterial. The JU17, however, must find that such note was accepted as payment of the mortgage debt. Hardin V. Branner, 25 Iowa, 364. The delivery of an unstamped deed to a vendee, which he has the power to have stamped, is a good part performance of a contract and en- titles the vend,or to claim other land which the vendee agreed to convey to him. Jones ». Pease, 21 Wis. 644. When a party is surprised by a ruling of the court construing an in- strument to be different in character from what he supposed and to re- quire a larger amount of stamps, and there is no evidence of an intent to evade the revenue law, he is entitled to a new trial. Hoppock v. Stone, 49 Barb. 524. An assignee of a judgment debtor who has made an assignment of his estate for the benefit of creditors, cannot maintain a bill in equity to re- strain the judgment debtor from issuing an execution on his judgment founded upon an unstamped or improperly stamped note. Ritter v. Brendlinger, 58 Perm. 68; Corry National Bank ». Rouse, 3 I. R. R. 31. A party has no right to have an instrument permanently forbidden to be used as evidence by the revenue law, beyond the power of Congress to repeal or alter it so as to permit the instrument to be read in evidence. KULINGS, DECISIONS, ETC. 321 A repealing statute is sucll an express enactment as necessarily divests all inchoate rights which have arisen under the statute which it destroys. "These rights are incident to the statute and fall with it. Hoppock v. Stone, 49 Barb. 534; Hibbard v. Gibson, 13 Mich. 315. A party upon discovering that an instrument is not properly stamped ^ay return it to the maker for that reason ; and then upon its being stamped and redelivered, it takes .effect as a valid instrument from the time of such redelivery. Robbins v. Deverill, 30 Wis. 143 ; Green et al. v. Lowry, 38 Geo. 548 ; "Wayman v. Torreson, 4 Nev. 124. But the maker cannot stamp the note after the death of the payee so as to make it valid in the hands of his administrator. Wayman v. ToiTeson, 4 Nev. 124. (5) The duty of stamping instruments under this section is obligatory updn the collector, and he has no legal right to refuse to perform it. The penalty mny be remitted. Interest cannot be remitted. The collector's marginal note should be in substance as follows : Internal revenue stamps to the amount of $ affixed to this instru- ment and cancelled by me at the request of , this day of , 18 — . Penalty $ — and interest $ — collected, or penalty remitted and in terest $ — collected (if that be the fact). ^ Collector , District of . Where there is a difference of opinion respecting the stamp proper to be affixed, the collector should affix such a one as the applicant prefers ; the applicant takes the risk of the validity of the instrument. In such cases, however, it is advisable to refer the question to the Office of Internal Revenue. When the originals are lost, the necessary stamps may be affixed to copies. Bach collector must keep a record of all instruments stamped or im- pressed by him, in which must be given the names of the parties to each instrument, the date of its execution and a sufficient description of its na- ture to show the reason for impressing or affixing the particular stamp. A certified copy of this record must be transmitted to the Office of In- ternal Revenue i,t the close of each quarter. When none have been stamped during the quarter, the fact should be reported upon Form 8. If an instrument is presented for insufficiency of stamp the amount upon it when presented should be stated. The whole amount of penalties, paid to collectors for validating un- stamped instruments, should be reported on JForm 58 with other unas- sessed penalties ; the interest should be entered under the head of interest upon monthly abstract of collections. Form 33, and both penalties and interest should be deposited to the credit of the United States Treasurer with other collections A person who holds an unstamped conveyance founded upon a confederate currency consideration will be allowed to affix such stamps thereto as he may think sufficient. 9 I. R. R. 163. The payment of a penalty for the purpose of having an instrument properly stamped by a collector relieves no one from his liability to in- dictment or other legal proceedings; nor does the payment of a penalty imposed by the court make the instrument valid. The two penalties are entirely distinct and the payment of one does not relieve irom the neces- sity or liability to pay the other. 6 I. R. R. 318. • 31 322 V. s. xnteenaij eevenue laws. : When Ihe application is not made by the makers of the instrument, but by another party haTing an interest therein, as payee or holder of a note, or the like, the proper district in which the application is to be made is the district in which the applicant resides. The collector of such district is the only one who has furisdiction of the person app'ying^ and of the instrument in his hands. Scheimerhom v. Burgess, 38 HotH Pr. 123. Any party having an interest in the instrument may appear before the collector and have it stamped. The maker may prefer to subject himself to a penalty rather than have the instrument made valid by a stamp. Hence it was highly proper to provide that any party interested therein might procure the stamp to be affixed. This is the fair grammatical con- struction of the sentence. The antecedent of " he or they " who may ap- pear is any party previously specified in the sentence who may be desirous of affixing the stamp for any reason. This interpretation is consistent with justice and fairness to both parties to an instrument. Schermerhorn v. Burgess, 38 How. Pr. 123 ; Blunt v. Bates, 40 Ala. 470. Contra. The person who is to appear before the collector to procure the stamping and cancelling is the person who issued the paper and who should have applied the stamp. He it is upon whom the penalty is imposed, and he can only be relieved by appearing and making the application, and securing the indemnity. If a party having an interest in a. pilfer shall desire it to be thus stamped for his benefit, he can only effect it by pro- curing the maker or party to be aff'ected by it to appear before the col- lector and procure the stamping and cancellation. Without his knowl- edge and against his presumed assent it cannot be done. Myers v. Smith,, 48 Barb. 614. A deputy collector, by virtue of his ordinary duties as such, has no power to remit penalties and to stamp or authorize the stamping of in- struments when they have been left unstamped from inadvertence or mis- take, except when ftom the inability or sickness of the collector he acts by special authority in his p^ace. The best evidence tljat this special au- thority has been devolved upon the deputy is the collector's official seal affixed to the certificate which remits the penalty and shows the ground upon which the stamp has been subsequently affixed. Unless the act of the deputy is authenticated with the official seal of the collector, or it is shown by sufficient evidence aliunde, that the collector was sick or other- wise unable to act at the time and that he was authorized for the time being to exercise the power in question, the same should be disregar,ded and treated as a nullity. Browns. Crandal, 23 Iowa, 113; McAfFertyi). Hale, 24 Iowa,' 355 ; Deskin «. Graham, 19 Iowa, 553 ; Beebe i>. Hutton, 4T Barb. 187. The authority entrusted to the collector by the statute is to be exer- cised in his discretion upon an examination of the facts of which he is. constituted the exclusive judge ; and in the absence of any controlling provisions, his decision upon those facts must be conclusive. His action KULINGS, DEOISIOKS, ETC. 323 is in a limited sense judicial, and certainly no collateral inquiry into the grounds of it could be permitted. Peoria Marine and Fire Ins. Co. v. Perkins, 16 Mich. 380 ; Hoppock ®. Stone, 49 Barb. 524 ; Corry National Bank ». Rouse, 3 I. R. R. 31. The collector's certificate partakes of the character of the act and "more resembles the memorial of a judicial determination than an ordinary official certificate. It commands confidence from the circumstance that it is made by an authorized public oflScer in the ordinary discharge of his duty as such, and in a matter concerning the government. It is admissi- ble in evidence on the principle that allows public documents, surveys, plats, entries and the like, to be given in evidence. Peoria Marine and Fire Ins. Co. v. Perkins, 16 Mich. 380. It is not necessary that the certificate should state that the collector is satisfied that the failure to stamp, etc., was -without any wilful design to defraud, etc. Dowd «. "Wright, 33 Iowa, 386. (c) The statute declares that an instrument thus stamped before the col- lector shall thereupon be deemed and held to be valid to all intents and purposes as if stamped when made or issued. No language could be clearer, and it should receive a liberal, rather than a strict construction, the better to effectuate justice and carry out the reason and policy of the law. An exception to that clause in the statute which declares that the instrument shall be invalid and of no efiect is made by this proviso, which takes out of its operation cases where the collector of the revenue of the proper district shall affix the proper stamps. Dowd «. Wright, 22 Iowa, 336; Tripp et al. v. Bishop, 56 Penn. 434; Gibsons. Hibbard, 13 Mich. 215; Hugus v. Strickler, 19 Iowa, 413; Cooke v. England, 37 Ind. 14; Dowler «. Oushwa, 27 Ind. 3"i4 ; Dorrig ». Grace, 24 Ark. 336 ; Mason v. Cheney et al. 47 N. H, 24 ; Garland v. Lane, 46 N. H. 245; Wri^t v. Mc- Fadden, 25 Ind. 488 ; Holyoke Machine Co. v. Franklin Paper Co. 97 Mass. 150 ; Patterson v. Eames, 54 Me. 303 ; Bay ». Baker et al. 36 Mo. 125 ; Kil- lip V. Empire Mill Co. 2 Nev. 34. When the original instrument is lost, the parties may take a copy be- fore the collector and have that stamped. Dowler v. Cushwa 27 Ind 354. An instrument not properly stamped, although recorded, is no notice to other parties, and the subsequent stamping thereof by the authority of the collector cannot cure the defect in such a sense as to interfere with rights that have inteiTened between the making and the stamping of the instrument. McBride ». Doty, 23 Iowa, 122 ; Miller et al. v. Morrow et al. 3 Cold; 587. Contra, Sauzer et al. ». Parker, 57 Me. Where chattel mortgages are merely filed and an entry made in a book kept by the clerk of the names of the parties, the amount secured, the date, timeof ffling and when due, they are not included within this pro- vision of the statute, as it contemplates mortgages which require to be recorded. Filing and recording are not synonymous. Vail ». Knapp, 49 Barb. 299. 324 U. S. LNTERNAI; REVENUE LAAVS. A mortgage duly stamped by the collector in accordance with the provisions of the statute is valid against the mortgagor and an assignee ■who has obtained the mortgaged property without given a valuable con- sideration therefor. Hoppock v. Stone, 49 Barb. 534. (. Hood, 57 Penn. 98; New Haven & Northampton Co. «. Quintard, 6 Abb. Pr. N. S. 128. Contra, Myers ». Smith, 48 Barb. 614. A letter stating terms for an agreement is not a contract or agreement of itself. It is only a proposition or offer. No contract or agreement is entered into until the other party has signified his assent thereto. The letter is only one link in the chain of evidence tending to prove the con- tract. No stamp is required to render it adpussible for such purpose. Crocker v. Foley, 13 AUen, 376. If an agreement to submit to arbitration is properly stamped, the ac- knowledgment need not be stamped. The agreement with the certificate constitute but one paper. McKnight v. McCullough, 31 Iowa, 111. An award ;rendered in pursuance of a covenant to submit to arbitration need not be stamped. Bumap v. Losey, 1 Lans. 111. * No stamp is necessary upon an instrument executed prior to October 1, 1863, to make it admissible in evidence, or to entitle it to record. 9 I. R. R. 165. RULINGS, DECISIONS, ETC. 337 "When an instrument is executed and issued in duplicate, triplicate, &c., as in the case of a lease of two or more parts, each part has the same legal effect as the other, and each should be stamped as an original. 9 I. R. R. 166. A guaranty indorsed upon a note, bond, mortgage, or contract, whether made at the time of the execution of the note, &c., or subsequently, should he stamped as an agreement. 9 I. R. R. 165. Any document of any kind made and issued in foreign countries, which is to have effect in the United States, and which, if made and issued in the United States, would require a stamp, may be stamped, and the stamp cancelled by the maker at the time and place of issue, or by the party to whom the same is issued, or by whom it is to be used. Bout. 343. A contract for the sale of land, or to make a title deed to the pur- chaser upon payment of the purchase money, requires a five cent stamp as an agreement for each sheet or piece of paper upon which it is written. 9 I. R. R. .165. A permit issued by a life insurance company, changing the terms of a policy as to travel, residence, occupation, &c., should be stamped as a contract or agreement. 9 I. R. R. 166. A waiver of protest, or of demand, and notice written upon negotiable paper and signed by the indorser, is an agreement. 9 I. R. R. 166. When a subscription is for a purpose in which there is a community of interest among the subscribers, the hst should be stamped as a contract or agreement, at the rate of five cents for each sheet or piece of paper upon which it is written. When the subscription is for a purpose in which there is no community of interest among the subscribers, and the subscrip- tion is conditional, each signer executes a separate contract requiring its appropriate amount of stamps. This amount depends upon the number of sheets or pieces of paper upon which the contract is written. 9 I. R. R. 166. A bill of sale of personal property other than a ship or vessel should be stamped as a contract or agreement. 9 I. R. R. 166. An assignment of real and personal property, or of both, for the benefit of the creditors, should be stamped as an agreement or contract. 9 I. R. R. 166. An assignment of a government land warrant should be stamped as an agreement. 1 I. R. R. 36. Written or printed assignments of agreements, bonds, notes not nego- tiable, and of all other instruments, the assignments of which are not particularly specified in the foregoing schedule, should be stamped as agreements. 9 I. R. R. 166. A mortgage to a building association, in addition to the appropriate stamp as a mortgage, requires an agreement stamp, as securing other mat- ters besides a certain and definite sum. 11 I. R. R. 65. (5) Inventories of the property of deceased persons returned for record or otherwise, should be stamped as "appraisements of value," at the same rate as agreements. 6 I. R R. 10 ). An appraisement of property made by fteeholders selected by the sheriff of the county, in accordance with a law pending for the sale of real estate under executions issued by a court, as well as appraisements of personal property taken in actions of replevin, are subject to stamp duty. Bout. 348. A mortgage given to secure a surety from loss, or for any other pur- pose whatever other than as security for the payment of a certain and de- finite sum of money, is taxable only as an agreement or contract. 5 I. R. R. 60. When a wife conveys real property without valuable consideration to 33 338 XJ. S. rNTEBNAIi KETBNUB LAWS. her husband through the intervention of a trustee, neither her deed to the trustee, nor the trustee's deed to the husband, need be stamped as a con- yeyance of realty sold, but each should be stamped as a contract or agree- ment. 6 I. R. R. 210. An agreement stamp is required for stipulations waiving protest, prom- ising to pay fees, &c., in promissory notes, in addition to the stamps ap- propriate to the note itself. 11 1. R. R. 138. A permit of a towing company upon a canal is a contract or agree- ment. 3 I R. R 204. A deed from the trustee of a person formerly a slave to the cestui que trust does not require a stamp, unless the deed contain covenants, in which case it should be stamped as an agreement. A stamp duty is imposed only upon realty sold. In this case there is no sale. The purpose and effect of such a deed is merely to place the legal title where the equitable title is. 3 I. R. R. 78. A pawnbroker's check, when duly signed and issued, is subject to a stamp duty of five cents. 2 I. B. R. 108. A transfer of stocks is subject to a stamp duty as an agreement or contract. Sometimes this transfer is made upon the back of a cerfiflcate ; and when that is the case, and it is duly stamped, the record of the trans- fer made in the books of the company does not require to be stamped. But if the actual transfer is made in the transfer book of the company, and no such instrument is executed upon the back of the certificate, then the instrument in the transfer book becomes more than a mere record of the transfer. It is a regular transfer of stock, and as such should be duly stamped. 2 I. R. R. 5. The assignment or transfer of a judgment should be stamped as an agreement. 3 I. R. R. 44. A receipt or memorandum given to an applicant by an insurance com- pany, on application for insurance, and of the premium notes, should be stamped as an agreement. 3 I. R. R. 156. Car tickets do not require stamps as agreements. A I. R. R. 70. The renewal of an agreement should be stamped the same as the original instrument. 91. R. R. 161. Banx check (c), draft, or order for the payment of any sum of money whatsoever, drawn upon any bank, banker, or trust company, or for any sum exceeding ten dollars drawn upon any other person or persons, companies, or corporations, at sight or on demand, two cents 2 (c) Checks drawn on a bank by one of its proprietors for his daily ex- penses, or by its employees for their wages, must be stamped. Bout. 344. The check of a correspondent on money to his credit, to transfer an amount of money collected for him, must be stamped. Checks drawn by a state for moneys belonging to the state are exempt. Bout. 345. When a note is made payable at a certain bank, and a check is drawn upon the same bank for the amount thereof, the check must be stamped. When the note- is simply charged at the bank to the account of the prom- issor without the use of a check, no stamp is required. Bout. 847. If a check upon a book-keeper is used merely as a memorandum to show the liability of the drawer to the firm of which he is a member, it is exempt; but if used for any other purpose, and especially if paid out or transferred, or negotiable to a third party, it should be stamped. Bout. 349. Bill op exchange (d) (inland), draft, or order for the payment of any sum of money not exceeding one hundred dollars, other- EULINGS, DECISIONS, ETC. 339 ■wise than at sight or on demand, or any promissory note (ex- cept bank notes issued for circulatioft, and checks made and intended to be forthwith presented, and which shall be pre- sented to a bank or banker tor payment), or any memorandum, check, receipt, or other written or printed evidence of an amount of money to be paid on demand, or at a time desig- nated, for a sum not exceeding one hundred dollars, five cents. 5 And for every additional hundred dollars, or fractional part thereof in excess of one hundred dollars, five cents 5 Promissory notes for a less sum than one hundred dollars are ex- empt. (d) A check payable at sight, but post dated, which has been put into circulation prior to the day of its date, should be stamped the same as a promissory note, and not as a check payable on demand. Pope v. Bum- set et al. 4 I. B. R. 133. An agreement jointly and severally to pay the sums set opposite to the respective names of the makers is a promissory note. Ballard v. Bumside, 49 Barb. 102. A due bill is a promissory note under the Illinois statutes, and in that State should be so stamped. Jacquin ». Warren, 40 111. 459. Certificates of loan, in which there shall appear any written or printed evidence of an amount of money to be paid on demand, or at a time de- signated, are subject to stamp duty as promissory notes. 9 I. R. R. 165. A check, draft, or order, for the payment of a sum of money dra'mi otherwise than at sight or on demand, is liable to stamp tax at the rate fixed for promissory notes. 9 I. R. R. 1 65. A note payable in corn is subject to a stamp duty. The parties must estimate the value of the corn. Bout. 843. When a loan is obtained upon collateral security, and an instrument substantially as follows is given, i. e., " Received of Bank $10,000 advance on $10,000 United States bonds," it should be stamped at the same rate as a promissory note. 9 I. R. R. 165. Deposit notes given to mutual insurance companies are exempt when the policy is subject to duty. 9 I. R. R. 163. There iano stamp upon a promissory note until it, is issued. A stamp is to be cancelled when it is " attached or used," and although a stamp may be affixed when a note is signed, it cannot be said to be used until the note is issued. 9 I. R. R. 165. A negotiable promissory note, made, signed, and issued in a foreign country, and made payable there, may be negotiated by indorsement in this country without liability to any United States stamp tax. 9 I. R. R. 165. Coupons are a part of a bond, and do not require an additional stamp. 6 I. R. R. 105. Whenever a bond or note is secured by mortgage, but one stamp duty is required on such papers, such stamp duty being the highest rate re- quired on such instruments or either of them. In such case, a note or memo- randum of the value or denomination of the stamp affixed should be made upon the margin or acknowledgment of the instrument which is not stamped. 9 I. R. R. 165. A note or bond given for a part of the consideration for realty sold and conveyed is not relieved from stamp tax by the fact that a lien to ■secure the payment thereof is retained in the conveyance. Such lien 340 V. S. EfTEENAIj REVENUE LAWS. should be stamped as a mortgage. In that case, the note need not be- stamped. 9 I. R. E. 165 ; 10 If R. R. 57. The acceptor of any bill of exchange or order for the payment of any sum of money, drawn or purporting to be drawn in any foreign counti-y, but payable in the United States, must, before paying or accepting the same, place the proper stamp thereon. 9 J. R. R. 165. A check drawn by an iodividual upon himself, or drawn upon a bank by its cashier, in his official capacity and in the discharge of his official duty, is in its legal effect " written or printed evidpnce of an amount of money to be paid on demand or at a designated time " and should be stamped at the same rate as a promissory note when designed for circula- tion. In other cases they are to be stamped like checks drawn by one person upon another. 9 I. R. R. 165 ; 11 I. R. R. 193. A single bill, or bill obligatory, i. e., an instrument in the form of a promissory note, under seal, should be stamped at the same rate as a pro- missory note. 9 I. R. R. 166. Bonds issued by cities or towns to aid in the construction of railroads or to purchase stock therein, are not considered as issued by municipal officers in the exercise of their ordinary governmental and municipal func- tions, and are therefore liable to a stamp tax at the same rate as promis- sory notes. 6 I. R. R. 105 ; 11 I. R. R 169. When each of the subscribers to a subscription list contracts to pay a certain and definite sum of money on demand, or at a time designated, the separate contract of each should be stamped at the same rate as a promis- sory note. 9 I. R. R. 166. When a bank borrows money, and instead of giving its note, gives a memorandum containing " evidence of an amount of money to be paid on demand or at a time designated," such memorandum should be stamped at the same rate as a promissory note, even though it is in the form of a certificate of deposit. 11 I. R. R. 43. No stamp is necessary upon the indorsement of a negotiable instru- ment. 5 I. R. R. 60. If a written agreement to sell and convey real estate contains the pro- mise of one of the parties signing it to pay a certain amount of money on demand or at a time designated, in addition to the appropriate stamp as an agreement it should also be stamped at the same rate as a promissory note. 71. R. R. 11. The endorsement of a partial payment on the back of a note is re- garded as a new memorandum not subject to stamp duty, and the fact that by implication of law it operates as an extension of the time of pay- ment does not affect the case. 4 I. R. R. 55. New notes substituted for other properly stamped notes that have been destroyed, and which are evidence of the same debt, and not renewals of the notes payable at different dates, do not require to be stamped. A memorandum of the circumstances should be made on the new notes. If, , however, notes are taken up aud new notes given in lieu thereof, payable at a different date or otherwise changed, the new notes are subject to stamp duty. 4 I. R. R. 182. Bill of bxohaiigb (e) Cforeign), or letter of credit, drawn in but payable out of the United State, if drawn singly, or otherwise than in a set of three or more, according to the custfcm of mer- chants and bankers, shall pay the same rates of duty as inland bills of exchange or promissory notes. If drawn in sets of three or more : For every bill of each set where the sum made payable shall not exceed one bundled dollars, or the equivalent thereof, in any foreign currency in RULIKGS, BBCISTONS, ETC. 341 -whicli sucli bills may be expressed, according to the standard of value fixed by the United States, two cents 2 And for every additional hundred dollars or fractional part thereof in excess of one hundred dollars, two cents 3 («) A foreign bill of exchange or letter of credit, drawn in, but payable out of, the United States, if drawn according to the custom of merchants and bankers, is liable to the same stamp tax aS an inland bill of exchange, i. e., if drawn at sight or on demand it is liable to a tax of two cents ; if drawn otherwise than at sight or on demand, it should be stamped at the rate of five cents for each $100 or fractional part thereof. Duplicates re- quire the same amount of stamps as the original. 9 I. R. R. 165. , The phrase " letter of credit " is construed to refer to such letters as are equivalent to a bill of exchange, the payment of which is not conting- ent upon any other transaction. Bout. 353. Bill of LADme (/) or receipt (other than charter-party), for any goods, merchandise, or effects, to be exported from a port or place in the United States to any foreign port or place, ten cents 10 (/) An inland or domestic bill of lading is exempt. 9 I. R. R. 161. A bill of lading to any port in British North America is exempt. 9 I. R. R. 161. Bill of sale (g) by which any ship or vessel, or any part thereof, shall be conveyed to or vested in any other person or persons, when the consideration shall not exceed five hundi'ed dollars, fifty cents 50 Exceeding five hundred and not exceeding one thousand dollars, one dollar 1 00 Exceeding one thousand dollars, for every additional amount of five hundred dollars, or fractional part thereof, fifty cents 50 (g) The stamp tax upon a bill of sale by which any ship or vessel, or any part thereof, is conveyed or vested in any other person or persons, is at the same rate as that imposed upon realty sold. A bill of sale of any other personal property should be stamped as a contract or agreement. 9 J. R. R. 166. « Bond — ^For indemni:fying any person for the payment of any sum of money, where the money ultimately recoverable thereupon is one thousand dollars or less, fifty cents 50 Where the money ultimately recoverable thereupon exceeds one thousand dollars, for every additional one thousand dollars or fractional part thereof in excess of one thousand dollars, fifty cents .- 50 Bond (A) for the due execution or performance of the duties of any office, one dollar 1 00 A bond gi^n by an administrator for the faithful performance of his duties should be stamped. Blake v. Hall et al. 19 La. An. 49. A bond given by a sheriff, conditioned for the faithful performance of Jiis duties, need not be stamped. State v. Garton, 33 Ind. 342 V. S. INTEKNAL EEVENUE LAWS. (A) The official bonds of administrators, executors, and guardians are subject to a stamp tax of one dollar each as bonds for the due execution or performance of the duties of an office. 5 I. R. R. 60 ; 9 I. R. R. 161. The bond given by the guardian of the minor heirs of a deceased sol- dier, in order to apply for the pension, bounty, or arrearages of pay, is subject to stamp duty as a bond given for the due execution and perform- ance of the duties of his office. 21. R. R. 77. The bond given by an asMgnee in bankruptcy requires a stamp. 6 I. R. R. 68. The bonds given by town and county officers require a stamp. 5 1. R. R. 130; 11I.R. R. 113. A bond given by a town supervisor for the proper disbursement of school money, after he has given his official bond and qualified as a public officer, is exempt. 11 1. R. R. 123. i The position of treasurer in the organization of " Odd Fellows," of in any similar organization, is not an office within the meaning of the statute. The bond given by a person holding such position is only subject to a stamp duty of twenty-five cents. 6 I. R. R. 302. A bond for the faithful disposition of the proceeds of sale, &c., re- quired by the court of an executor, administrator, guardian, or trustee, upon his application for leave to sell property, is exempt, being a bond re- quired in legal proceedings. 6 I. R. R. 210. Bond (i) of any description, other than such as may be required in legal proceedings, or used in connection with mortgage deeds, and not otherwise charged in this schedule, twenty-five cents . 25 (i) A bond given by an insolvent, conditioned that he will appear at the next term of court, and present his petition for the benefit of the in- solvent law, need not be stamped. It is required by legal proceedings, McGrOvem v. Hoeabeck, 53 Penn. 176. An appeal bond need not be stamped. Smith v. Waters, 25 Ind. 397 ; Violet V. Heath, 26 Ind. 178 ; Anderson v. Coble, 26 Ind. 329. A bond given to release property held under an attachment is a bond given in a legal proceeding, and need not be stamped. Bowers v. Beck, 2 Nev. 189. State and city securities are exempt from stamp duty. 1 1. R. R. 75 ; 3 I. R. R. 14. Bonds given in an action of replevin, and in actions commenced by capias are held to be bonds required in legal proceedings, and are exempt. 3 I. R. R. 53. A bond to convey real estate requires stamps to the amount of twenty- five cents. 9 I. R. R. 166. The two forms of bonds given by masters of steamboats require a twenty-five cent stamp each 6 I. R. R. 105. Warehouse and rewarehouse bonds require a twenty-five cent stamp. 6 I. R.R.I 23. Enrollment and license bonds require a twenty-five cent stamp. 6 I. R> R. 123. Ceetipicate of stock in any incorporated company, twenty-five cents 35. Cbetificate of profits, or any certificate or memorandum showing an interest in the property or accumulations of any incorpora- RULINGS, DECISIONS, ETC. 343 ted company, if for a sum not less than ten dollars and not exceeding fifty dollars, ten cents 10 Exceeding fifty dollars and not exceeding one thousand dollars, twenty-five cents 25 Exceeding one thousand dollars, for every additional one thou- sand dollars, or fractional part thereof, twenty-five cents 25 Cbrtipicatb.— Any certificate of damage, ■ or otherwise, and all other certificates or documents issued by any port warden, marine surveyor, or other person acting as such, twenty-five cents 25 Certificate ( j) of deposit of any sum of money in any bank or trust company, or with any banker or person acting as such — If for a sum not exceeding one hundred dollars, two cents 3 For a sum exceeding one hundred dollars, five cents 5 ( j) When money is received as a bona fide deposit, against which the depositor may draw, the certificate need only be stamped with a two cent or a five cent stamp, according to whether the amount exceeds one hundred dollars or not, even though the deposit draws interest for part or for all the time it remains in bank. 11 I. R. R. 43. Certificate (h) of any other description than those specifled, five cents 5 (h) The certificate of an officer to depositions taken before him does not require a stamp. No tax is imposed upon depositions, and the certi- ficate of the officer before whom they are taken is an act essential to their validity, and in that sense forms a part of them. Prather v. Pritchard, 36 Ind 65 ; Cardell v. Bridge, 9 Allen, 355. The certificate of a justice of the peace to a certified copy of his record, to be used on appeal or to be filed in a superior court, need not be stamped. Toledo, Logansport and Burlington R. R. Co. ■». Nordyke, 37 Ind. 95 ; Comm D. Hardiman, 9 Allen, 487. The certificate of a justice of the peace to an order to be used as a summons need not be stamped. East Haven®. Derby, 38 Vt. 353. The return of a constable of the service of a summons is a certificate in both the technical and liberal sense of the term, and should be stamped. Miller «. Larmon, 38 How. Pr. 417. When the caption to a deposition contains other certificates in addition to the jurat to the affidavit of the deponent, such as a certificate that the parties were or were not notified, that they did or did not appear, that they did or did not object, it is subject to a stamp duty of five cents. 9 I. R. R. 166. When an attested copy of a writ or other process is used by a sheriff or other persoii in making personal service or in attaching propertv, a five cent stamp should be affixed to the certificate of attestation. 9 I. R. R. 166. A marriage certificate isssued by the officiating clergyman or magis- trate to be returned to any officer of a state, county, city, town, or other 344 TJ. S. HfTEBIfAL EBVENUB LAWS. municipal corporation, to constitute part of a public record, requires no stamp ; but if it is to be retained by the parties, a five cent stamp should be affixed. 9 I. R. R. 166. A county clerk's certificate respecting the authority of a person to ad- minister oaths, &c., issued to be used by a prirate party for his own benefit, should be stamped. 9 I. R. R. 166. Certificates of measurement or weight of animals, wood, coal, or hay, are exempt. 9 I. R. R. 163. If possession of real estate is taken by a mortgagee, or sureendered by the mortgagor, the certificate of the witness should be stamped. Bout. 347. Certificates of disAission and recommendation of church members are not subject to a stamp duty. Bout. 346. A certificate from an insurance company, approving a change of tenants by the insured and confirming his policy, should be stamped. Bout. 367. Steamboat inspectors' certificates are exempt. 6 I. R. R. 105. Official receipts, or certificates of the nature of receipts, issued by cus- tom-house officers, are exempt. 6 I. R. R. 133. Chaetekpakty. — Contract or agreement for the charter of any ship or vessel, or steamer, or any letter, memorandum, or other writing between the captain, master, or owner, or person act- ing as agent of any ship or vessel, or steamer, and any other per- son or persons for or relating to the charter of such ship or vessel, or steamer, or any renewal or transfer thereof, if the registered tonnage of such ship or vessel, or steamer, does not exceed one hundred and fifty tons, one dollar 1 00 Exceeding one hundred and fifty tons and not exceeding three hundred tons, three dollars 8 00 Exceeding three hundred tons and not exceeding six hundred tons, five dollars 5 00 Exceeding six hundred tons, ten dollare 10 00 Contract (l). — Broker'? note, or memorandum, of sale of any goods or merchandise, real estate, or property of any kind or description, issued by brokers or persons acting as such, for each note or memorandum of sale, ten cents 10 Bill or memorandum of the sale or contract for the sale of stocks, bonds, gold or silver bullion, coin, promissory notes, or other securities, shall pay a stamp tax at the rate provided in section ninety-nine. • (l) Memorandums of purchase and sale must be regarded as within the meaning of the clause pertaining to contracts or brokers' notes, and subject to a stamp. Bout. 344. The original and the dup'icate, the one issued to the seller as well as that given to the buyer, must be stamped. Bout. 346. CoNTETANCB (to). — Deed, instrument, or writing, whereby any lands, tenements, or other realty sold shall be granted, as- signed, transferred, or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons, by his, her, or their direction, when the consideration or value does not exceed five hundred dollars, fifty cents 50 "When the consideration exceeds five hundred dollars and does not exceed one thousand dollars, one dollar 1 00 And for every additional five hundred dollars, or fractional part thereof, in excess of one thousand dollars, fifty cents^ 50 RULINGS, DECISIONS, ETC. 345 (ot) The assessment of the stamp duty is to be made in respect of the ■consideration or value. When the present value of the subject is less than "the conventional or actual amount of the consideration, the stamp duty is assessable upon the consideration, without any reference to the Value. If the consideration, as conventionally estimated by the parties, is less than the actual consideration, the stamp duty must be assessed upon the actual consideration, vrithout reference to the language of the writings. The words " consideration or value " do not mean the value of the consider- ation. The word " value " does not qualify the word " consideration." The consideration is to be und^erstood as that of the wnveyance ; the value as that of the subject of conveyance. James «. Blauvelt et al. 26 Law Rep. 485. "When a conveyance is made of an unimproved lot, with a stipulation that the grantor will advance a certain sum towards the cost of stipulated improvements thereon, and the grantor takes a mortgage to secure the estimated value of the lot, his advances and his stipulated profits, the actual consideration of the conveyance is the amount secured by the mortgage. James «. Blauvelt et al. 26 Law Eep. 485. A conveyance without consideration, from a person who acts as a mere middleman, to convey to the real purchaser, need not be stamped; a double stamp duty is not incurred by such duplication. Any deficiency in the amount of stamps required for the entire transaction should be assessed upon the first conveyance. James ». Blauvelt et al. 26 Law Rep. 485. Testimony is admissible to show that there was no consideration for a deed. It opens the question of value, under the stamp act, and enables the sufficiency of the stamp to be investigated upon that basis. Where there is no actual consideration the stamp must be regulated by the value of the interest sold. Groesbeek ». Seeley, 13 Mich. 329. A tax-deed for land sold for taxes need not be stamped. Sayles v. Davis, 22 Wis. 225. A sealed instrument, which merely declares and acknowledges that the party holds a lot of ground merely in trust, is not a conveyance, and need not be stamped ; it merely declares, under the solemnity of a seal, a pre-existing state of facts, which could not be proved without the assist- ance of such formal declaration. Sime et al. v. Howard et al. 4 Kev. 47,8. It is only upon a conveyance of realty sold that conveyance stamps are necessary. A deed of real estate made without valuable consideration need not be stamped as a conveyance, but should be stamped as an agree- ment or contract. 9 I. R. R. 165. When a person conveys real property, without valuable consideration, through the intervention of a trustee, neither the deed to the trustee nor the trustee's deed to the cestui que trust need be stamped as a conveyance of realty sold, but each should be stamped as a contract or agreement. When a deed purporting to be a conveyance of realty sold, and stamped accordingly, is inoperative, a deed of confinnation, made simply 346 U. S. INTEENAL REVENUE LAWS. to cure the defect, requires no stamp. In such case, the second deed should contam a recital of the facts, and should show the reasons for its execution. 9 I. E. R. 165. Partition deeds, between tenants in common, need not be stamped as conveyances inasmuch as there is no sale of realty, but merely a marking out, or a defining of the boundaries of the part belonging to each, but should be stamped as agreements. Where money, however, or other valuable consideration is paid by one co-tenant to another, for equality of partition, there is a sale to the extent of such consideration, and the con- veyance should be stamped accordingly. 9 I. R. R. 165. Deeds between joint tenants should be stamped as conveyances of realty sold. In the case of tenants in common, each tenant owns the whole of a part and there is no sale, but merely a marking out, or defining of the part belonging to each; in the case of joint tenants, each owns a part of the whole, and in what is usually denominated a division, in such case,, there is an exchange of lands. An exchange does not differ materially from bargain and sale. 9 I. R. R. 165. Ground rent deeds should be stamped at the same rate as other deeds of realty sold. 9 I. R. R. 165. When the property of a deceased person is sold under a decree of court, the deed, procea verbal, or other instrument whereby the transfer is made, should be stamped at the usual rate of conveyances of realty sold. 9 I. R. R. 165. When a conveyance of realty is made upon an actual valuable consid- eration, which is manifestly and intentionally inadequate, the deed should be stamped according to the amount of valuable consideration. 9 I. R. E. 165. When the members of a business firm obtain an act of incorporation, and the partnership realty is conveyed to the corporation, each partner receiving stock therein to the amount of the partnership interest, the deed from the partnership to the corporation should be stamped the same as ordinary deeds. 9 I. R. R. 165. When a deed conveys both realty and personalty, it should be stamped at the sanie rate as other deeds, according to the consideration or value of the realty ; and, also, as a contract or agreement on account of the personalty. 9 I. R. R. 165. A conveyance of lands, sold for unpaid taxes, issued since August 1, 1866, by the oflicer of any county, town, or other municipal corporation, in the discharge of their strictly official duties, is exempt. 9 I. R. R> 165. A conveyance of realty, sold subject to a mortgage, should be stamped according to the consideration or value of the property unencumbered. The consideration, in such a case, is to be found by adding the amount paid for the equity of redemption to the mortgage debt. The fact that one part of the consideration is paid to the mortgagor, and the other part to the mortgagee, does not change the liability of the conveyance. 9 I. R. R. 165. The actual consideration, and not the mere nominal consideration, determines the amount of stamp-tax upon a conveyance of realty sold. 5 I. R. R. 60. . A deed executed prior to Sept. 1, 1862, requires no stamp, if delivered before that date ; but should be stamped if delivered since that date. 3 I. R. R 52. Deeds of lands made under the decree of a master in chancery are subject to a stamp duty as conveyances. Bout. 339. When a mortgage is foreclosed, and special execution issues, and the land is sold the same as in a general execution, the deed made by the sheriff must be stamped the same as other deeds. 2 I, R. R. 45. RULINGS, DECISIONS, ETC. 347 Deeds of real estate sold by a sheriff under process of law should be stamped. Bout. 347. In several States it is the custom to discharge a mortgage or deed of trust by a quit-claim deed. Such deed does not operate to convey the estate ; it is merely, in substance, a release of the mortgage, and is exempt from tax duty. Bont 347. Certificates of burial lots, being in the nature of conveyances, are sub- ject to stamp duty as such. 3 I. R R. 45. , When a vendee fails to pay the stipulated consideration for land sold to him, and in consideration of a release from the payment thereof, and of an additional sum paid to him, he conveys the land to the vendor, the deed of conveyance should be stamped according to the amount of such stipulated consideration and such additional sum together with all inter- est that may be due. 4 I. R. R. 143. A release by a tenant for life to the owner of the remainder should be stamped at the usual rates for conveyances of realty sold. 6 I. R. R. 186. When a vendor's lien is specially reserved in a deed, such lien should be stamped at the rate of mortgages in addition to the conveyance stamps. 10 I. R. R. 57. The deed of an assignee in bankruptcy to purchasers, should be stamped at the usual rate of deeds. 6 I. R. R. 68. Extraordinary powers, special covenants, &c., sometimes inserted in deeds of various kinds, but not contained in the common forms, are liable to the same tax as if they were issued separately. 4 I. R. R. 171. Entkt (n) of any goods, wares or merchandise at any custom house, either for consumption or warehousing, not exceeding one hundred dollars in value, twenty-five cents 35 Exceeding one hundred dollars and not exceeding five hundred dollars in value, fifty cents 50 Exceeding five hundred dollars in value, one dollar 1 00 (n) Stamps should be required on entries of goods coming fi-om Cana- da as weU as from foreign countries. Bout. 378. A constructive entry, for warehousing, is considered the same as an actual one, as far as the stamp tax is concerned. This kind of entry is made for the benefit of the parties, and not of the government. When the entries for warehousing and withdrawal are simultaneous, stamp tax should be paid for both. 10 I. R. R. 11. * Entry for the withdrawal of any goods or merchandise from "bonded warehouse, fifty cents 50 Insukancb (life) (o). — Policy of insurance, or other instrument, by whatever name the same shall be called, whereby any insur- ance shall be made upon any life or lives — When the amount insured shall not exceed one thousand dollars, twenty-five cents 35 Exceeding one thousand dollars and not exceeding five thousand dollars, fifty cents 50 Exceeding five thousand dollars, one dollar 1 00 (o) The word life is to be construed as relating to human life only. When a material change, such as a change of the property insured, or in the amount of insurance, is made in an insurance policy, by erasures, interlining or otherwise after it has been issued, the changed policy is a new contract of insurance and requires a new stamp. 6 I. R. R. 310. 348 U. S. IffTEENAL EEVENUE LAWS. When a policy, properly stamped but incorrectly written, is sur- rendered, and another substituted solely to cure the defect in the first, the new policy requires no stamp. In such case the new policy should con- tain a recital of the facts, and show the reasons of its execution. 6 I. R. E. 105. iNStJKANCB (p) (maeinb, INLAND, AND FIRE). — ^Each policy of in- surance or other instrument, by whatever name the same shall be called, by which insurance shall be made or renewed upon property of any description, whether against perils by the sea or by fire, or other peril of any kind, made by any insurance company, or its agents, or by any other company or person, the premium upon which does not exceed ten dollars, ten cents ■ 10 Exceeding ten and not exceeding fifty dollars, twenty-flye cents. 35 Exceeding fifty dollars, fifty cents 50 (p) The stamp-tax upon a fire insurance policy is based upon the premium. 9 I. E. E. 166. Deposit notes, taken by a mutual fire iiisurance company, not as a pay- ment of the premium, nor as evidence of indebtedness therefor, but to be used simply as a basis upon which to make ratable assessments to meet the losses incurred by the company, should not be reckoned as premium in determining the amount of stamp-tax upon the policy. 9 I. E. R. 166. When a policy of insurance, properly stamped, has been issued and lost, no stamp is necessaiy upon another issued by the same company to the same party, covering the same property, time, &c., and designed simply to supply the loss. The second policy should recite the loss of the first. 9 I. E. R. 166. An instrument which operates as the renewal of a policy of insurance is subject to the same stamp-tax as a policy. 9 1 R. R. 166. When a policy of insurance is issued for a certain time, whether it be for one year only or for a term of years, a receipt for premium, or any other instrument which has the legal efifect to continue the contract, and extend its operation beyond that time, requires the same amount of revenue stamps as the policy itself; but such a receipt as is usually given for the payment of the monthly, quarterly, or annual premiums, is not a renewal, within the meaning of the statute. The payment simply pre- vents the policy from expiring, by reason of non-perfonnance of its condftions. A receipt, given for such a payment, should be stamped the same as other receipts for money. When, however, the time for payment has passed, and a tender of the premium is not enough to bind the company, but a new policy, or a new contract in some form, with the mutuality essential to every contract, becomes necessary between the insurer and the insured, the same amount of stamps should be used as that required upon the original policy. 9 I. R. E. 166. An application for a policy forms a part of the policy, and is not sub- ject to a separate stamp Bout. 367. Each insurance, re-insurance, and duplicate policy, must be stamped according to the prescribed rates Bout, 366. When the contract of insurance is entered in a register, instead of issuing a policy, whether it is a new insurance, re-insurance, or renewal of a policy, each entry re'quires a stamp, at the usual rate, based upon the premium. It would hot be legal or sufficient to estimate the tax in the sum total of the premiums entered at one date as if it were a single poUcy. 6 I. E. E. 105. EULINGS, DECISIONS, ETC. 349 The law imposes no tax upon the policies of Health Insurance Com- panies. 6 1. E. B. 195. Lease (q), agreement, memorandum, or contract for the hire, use, or rent of any land, tenement, or portion thereof, where the rent or rental value is three hundred dollars per annum or less, fifty cents 50 Where the rent or rental value exceeds the sum of three hundred dollars per annum, for each additional two hundred dollars, or .fractional part thereof in excess of three hundred dollars, fifty cents 50 {q) The stamp duty upon a leale, agreement, memorandum, or contract for the hire, use, or rent of any land, tenement, or portion thereof, is based upon the annual rent or rental value of the property leased, and the duty is the same, whether the lease be for one year, for a term of years, or for the fractional part of a year only. 9 I. R. R. 165. A lease of both realty and personalty should be stamped as a lease of lands and tenements as to the realty, and as an agreement as to the per- sonalty. 9 I. R. R. 165. In oil leases there is very rarely a fixed rental value in money agreed upon. They are analogous to leases of farms upon shares. Such leases are subject to stamp duty as leases, and a stamp as an agreement or con- tract is not sufficient. The parties should apply to the collector and have the stamp duty determined. 1 I. R. R. 3. When duplicate leases are executed, both should be properly stamped. Bout. 341. Manifest (r) for custom-house entry or clearance of the cargo of any ship, vessel, or steamer for a foreign port — If the registered tonnage of such ship, vessel, or steamer, does not exceed three hundred tons, one dollar 1 00 Exceeding three hundred tons and not exceeding six hundred tons, three dollars 3 00 Exceeding six hundred tons, five dollars 500 (r) The amount of this tax in each case depends upon the registered ton- nage of the vessel. If a vessel clears in ballast and has no cargo whatever,^ no stamp is necessary ; but if she has any .cargo, however small the amount, a stamp should be used. 5 I. R. R. 74. Stamps are not required on copies of manifests mentioned in sec- tions 31 and 35 of the act of 1799, ch. 33, nor on copies of entries furn- ished to the several officers of customs under that law. 7 I. R. R. 173. MoKTGAGB (s) of lands, estate, or property, real or personal, herit- able or movable, whatsoever, where the same shall be made as a seciuity for the payment of any definite and certain sum of money lent at the time or previously due and owing or forborne to be paid, being payable ; also any conveyance of any lands, estate, or property whatsoever, in trust, to be sold or otherwise converted into money, which shall be intended only as secm-ity, and shall be redeemable before the sale or other disposal there- of, either by express stipulation or otherwise ; or any personal bond given as security for the payment of any definite or cer- tain sum of money exceeding one hundred dollars, and not ex- ceeding five hundred dollars, fifty cents 50 Exceeding five hundred dollars, and not exceeding one thousand dollars, one dollar 1 00 350 TJ. S. INTEBNAL EEVElftrE LAWS. And for every additional five hundred dollars, or fractional part thereof, in excess of one thousand dollars, fifty cents 50 Upon every assignment («) or transfer of a mortgage, the same stainp tax upon the amount remaining unpaid thereon as is herein imposed upon a mortgage for the same amount : Pro- vided, That upon each and every assignment (a) or transfer of a policy of insurance, or the renewal or continuance of any agree- ment, contract, or charter, by letter or otherwise, a stamp duty shall be required and paid equal to that imposed on the ori- ginal instrument : And provided further. That upon each and . every assignment («) of any h'ase, a stamp duty shall be re- quired and paid equal to that imposed on the original instru- ment, increased by .a stamp duty on the consideration or value of the assignment equal to that imposed upon the conveyance of land for similar consideration or value. And no stamp shall be required upon the transfer or assignment of a mortgage, where the mortgage or the instrument it secures has been once duly stamped. («) A mortgage to secure the mortgagee as drawer and indorser of cer- tain drafts which have been drawn for the benefit of the mortgagor and are payable subsequent to the execution of the mortgage neecfiiot be stamped. Vail V. Knapp, 49 Barb. 399. A mortgage to secure $10,000 and having only a five cent stamp there- on is void against an assignee claiming under a subsequent assignment of the property made for the benefit of creditors. 30 How. Pr. 120. Qusere. Can the statute be so applied as to render contracts which on their face bear adequate stamps inadmissible in evidence or inoperative, by showing that they were executed in connection with another paper, viz. : a defeasance, which is inadmissible for the want of a stamp, but which if admitted would give to them a difierent legal effect and opera- tion from that which would result from them if constructed by themselves. Carpenter et al. v. Snelling, 97 Mass. 453. The mortgage must be stamped according to the consideration expressed upon its face. When a mortgage note is taken for the full sum intended to be advanced, but only a portion is advanced, the mortgage must be stamped according to the full face of the note. McBride «. Doty, 33 Iowa, 133. The stamp tax upon a mortgage is based upon the amount it is given to secure. The fact that the value of the property mortgaged is less than that amount, and that consequently the security is only partial, does not change the liability of the instrument. When, therefore, a second mort- gage is given to secure the payment of a sum of money partially secured by a prior mortgage upon other property, or when two mortgages are given upon separate pieces of property at the same time to secure the payment of the same sum, each should be stamped as though it were the only one. 9 1. E. E. 165. If two mortgages are given to secure one bond and the appropriate stamp is affixed to the bond, the bond will be valid though the mortgages might not be. 3 I. E. E. 11. A mortgage given to secure a surety from loss, or given for any other purpose whatever than as security for the payment of a definite and cer- BULINGS, DECISIONS, ETC. 351 tain sum of money, is taxable only as an agreement or contract. 9 I R • B. 165. The stamp tax upon a mortgage or trust deed is based upon the defi- nite and certain sum of money originally secured thereby without including any interest that may accrue after the date of the instrument. 9 I. R R 165. A mortgage securing less than $100 is not subject to stamp duty, but the liability of the bond or note which is evidence of the amount secured is the same as though there were no mortgage. The necessary stamp may be affixed either to the bond or note, or to the mortgage. 9 I. R. R. 165. _No stamp is necessary upon the registry of a judgment, even though the registry is such in its legal effect as to create a lien which operates as a mortgage upon the property of the judgment debtor. 9 I. R. R. 166. When a vendor's_ lien is secured in a deed, the lieu should be stamped as a mortgage in addition to the stamps upon the conveyance. 10 I. R. R 57. A mortgage to a building association should be stamped according to the amount expressly secured by them, i. e., according to the nominal amount appearing upon the face of the mortgage, and not according to the amount actually advanced to the mortgagee. 11 I. R. R. 65. The renewal of a chattel mortgage by a notice entered upon the record as provided by the laws of several States need not be stamped. Bout. 343. When the mortgage secures other matters besides the payment of a cer- tain and definite sum, it should also be stamped as an agreement. 11 I. R. R. 65. The ordinary power of sale commonly inserted in a mortgage or in a trust deed given as security for the payment of money, is regarded as a part of the mortgage or deed, and requires no additional stamp. Extra- ordinary powers and agreements should be separately stamped. 6 1. R. R. 130; 3I.R. R. 44; 4 I. R. R 171. Whenever a bond or note is secured by a mortgage but one stamp duty is required on such papers, such stamp duty being at the highest rate required for such instruments or either of them ; in such case, a note or memorandum of the value or denomination of the stamp affixed, should be made upon the margin or in the acknowledgment of the instrument not stamped. 9 I. R. R. 165. A mortgage given to secure bonds which are to be issued from time to time as sales of them can be made is valid, so far as stamp taxes are con- cerned, though no stamps are affixed thereto, if the bonds are properly stamped as they are issued. 9 I. R. R. 165. A personal bond given as security for any definite or certain sum of money must be stamped at the same rate as a mortgage. 3 I. R. R. 45. (t) Upon every assignment or transfer of a mortgage a stamp tax is required, equal to that imposed upon the mortgage, for the amount re- maining unpaid. This tax is required upon every such transfer in writing, whether there is a sale of the mortgage or not. But no stampis necessary upon the endorsement of a negotiable instrument, even though the legal effect of such endorsement is to transfer a mortgage by which the instru- ment is secured. 9 I. R. R. 166. When a partial interest in a mortgage is assigned, as where one of two mortgagees assigns his interest, the assignment should be stamped accord- ing to the amount of interest transferred. 9 I. R. R. 166. The fact that the transfer is made by an order of court does not exempt it from stamp duty. 10 I. R. R. 85. An assignment of a mortgage executed years ago must be governed by 352 U. S. INTERNAL REVENUE LAWS. the law now in force. If the mortgage has been reduced by payment, the' amount of stamps to be affixed to the assignment depends upon the amount actually due on the mortgage when the assignment is made. 3 I. R. R. 39. (v) An entry upon a policy of insurance, and in the book of the company, that a loss is payable to a trustee in a deed of trust in the nature of a mortgage, to the extent of his interest, is a transfer of a policy, and must be stamped accordingly. 13 I. R. R. 31. (a) An assignment of a lease within the meaning and intent of Schedule B is an assignment of the leasehold, or of some portion thereof, by the lessee, or by some person claiming by, from or under him — such an assignment as subrogates to the rights or some portion of the rights of the lessee, or of the person standing in his place. 9 I. R. R. 166. An assignment of a lease is subject to the same duty as the original lease, and if any consideration is paid for the assignment beyond the yearly rent, it will be subject to an additional stamp duty proportionate to such, consideration. 1 I. R R 196. When the consideration for an assignment of an oil lease is a certain proportion of the oil to be produced from the premises assigned, as a roy- alty, and a fixed bonus to be paid out of the money first realized from the sale of stocks, or upon boauses on sub-leases, the stamp duty for such consideration depends upon the estimated value of such annual rent and of such bonus. These estimates, if made by any other person than a collector, are made at the risk of the party. 3 I. R. R. 133. A bill of sale of a vessel given as security for money must be stamped as a mortgage. Bout. 347. Passage ticket (w) by any vessel from a port in the United States to a foreign port, not exceeding thirty-flve dollars, fifty cents . . 50 Exceeding thirty-five dollars and not exceeding fifty dollars, one dollar 1 00 And for every additional fifty dollars, or fractional part thereof, in excess of fifty dollars, one dollar 1 00 (w) Stamps placeil upon the passage tickets of passengers leaving for foreign ports should be based upon the currency value of the tickets, and not upon the gold value. 6 I. R. R. 105, 185. Power of attormey (x) for the sale or transfer of any stock, bonds,' or scrip, or for the collection of any dividends or interest there- on, twenty-five cents ■ : 35 (x) Any written authority, in whatever form drawn, made by a stock- holder in a corporation, for the transfer of shares in such corporation, is regarded as a power of attorney. Bout. 347. A power of attorney designed to be used in a foreign country, and so prepared and authenticated as to conform to the laws of that country, need not be stamped. Bout. 343. When several stockholders, who are the owners of distinct shares, sign a power of attorney, each authorizing a person to act for him, the instru- ment is to be regarded as the separate power of each, and should be stamped accordingly. If the power relates to general business, and not merely to the election of officers, it should be stamped at the rate of fifty cents for each signer whether it is to be used at elections or not. 9 I. R. R. 166. No stamp is required upon any warrant of attorney accompanying a bond or note when such bond or note has affixed thereto the stamp or stamps denoting the duty requii-ed. 9 I. R. R. 165. RULINGS, DECISIONS, ETC. 353 The exemption in regard to bounties, &c., applies to those papers only which relate to United States bounties, pensions, &c., and does not extend to those relating to state, county, or town bounties, &c. A power of attorney to endorse the official check of a United States disbursing officer, issued for money, to be applied in payment of a United States bounty or pension, or in discharge of a claim against the United States for what is technically known as arrearages of pay, is exempt. 9 I. R. R. 165. PowBK OF Attobnbt oe PROXY for voting at any election for officers of any incorporated company or society, except religious, charita- ble, literary societies, or public cemeteries, ten cents 10 PowBB OP ATTOENET to receive or collect rent, twenty-five cents 25 Power of attobnet to sell and convey real estate, or to rent or lease the same, one dollar 1 00 PowBB OF ATTOENET {y) for any other purpose, fifty cents 50 (y) A power of attorney appointing an agent to vote for an assignee, in a case pending in bankruptcy, need not be stamped. In re Myrick, 3 B. R. 38; contra, 6 I. R. R. 68. An order authorizing a person to draw and receipt for moneys that may thereafter become due, is a power of attorney, and requires a fifty cent stamp. 3 I. R. R. 60. The written appointment, mentioned in section 25 of the act, com- monly known as the National Currency Act, is a power of attorney, and requires a fifty cent stamp. 5 I. R. R. 204. Peobate of WTLii (a) or letters of administration : Where the estate and eficcts for or in respect of which such probate or letters of administration applied for shall be sworn or declared not to exceed the value of two thousand dollars, one dollar. . . 1 00 Exceeding two thousand dollars, for every additional thousand dollars, or fractional part thereof, in excess of two thousand dollars, fifty cents 50 Provided, That no stamp either for probate of wills, or letters testamentary, or of administration, or on administrator or guardian bond, shall be required when the value of the estate and effects, real and personal, does not exceed one thousand dollars : Promdedfwrther, That no stamp tax shall be required upon any papers necessary to be used for the collection from the government of claims by soldiers or their legal representa- tives of the United States, for pensions, back pay, bounty, or for property lost in the service. (s) When neither the bond, nor appraisement, nor letters of administra- tion are stamped, the appointment to the office of administrator is a nullity. Blake a. Hall et al. 19 La. An. 49. The stamp may be affixed to the bond, or to the letters of administra- tion. Miller v. Henderson, 24 Ark. 344. The evident purpose of the act is to impose stamp duties upon the 23 354 U. S. DfTERNAi REVBIOJE LAWS. estates of deceased persons upon which letters testamentary or of admin- istration shall be granted. It is not a tax upon either class of documents as such, as is evident from the fact that the duty varies with the value of the estate. It can make no substantial difference in the result whether the stamp is affixed to the will upon its being admitted to probate, or to the certificate of proof thereof attached, or to the letters testamentary, as they are parts of one judicial proceeding ; and the object of the act — revenue — ^is attained if either document is duly stamped. The presump- tion, when the question arises in a collateral proceeding, is that the probate court passed upon the value of the estate on evidence, and such action of the probate court cannot be reviewed collaterally. The sufficiency of the stamp cannot be tested by the evidence of the value of the estate produced in another proceeding where the letters are offered in evidence. The validity of proceedings for the settlement of the estates of deceased persons and of rights acquired through such proceedings, cannot there be made dependent upon the contingency that another court will make the same estimate of the value of the estate as the probate court did, based upon evidence which, irom its nature, must be conjectm-al and fluctuating. Satteree v. BUss, 36 Cal. 489. * The stamp duty upon the probate of a will or upon letters of admin- istration is based upon the sworn or declared value of all the estate and effects, real, personal, and mixed, undiminished by the debts of the estate for or in respect of which such probate or letters are applied for. 9 I. E. R. 166. When the property belonging to a person deceased lies under differ- ent jurisdictions, and it becomes necessary to take out letters in two or more places, the letters should be stamped according to the value of the property, real, personal, and mixed, for or in respect of which the letters in each case are issued. 9 I. R. R. 166. Letters de honk non, should be stamped according to the amount of property remaining to be administered upon thereunder, regardless of the stamps upon the original letters. 9 I. R. R. 166. Protest (aa). — 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, twenty-five cents 25 Provided, That when more than one signature is affixed to the same paper, one or more stamps may be affixed thereto repre- senting the whole amount of the stamp required for such signatures ; and that the term money, as herein used, shall be held to include drafts and other instruments given for the pay- ment of money : Provided, That the stamp duty imposed by the foregoing schedule (B) on manifests, bills of lading, and passage tickets, shall not apply to steamboats or vessels plying between ports of the United States and ports of British North America: And provided furtJier, That all affidavits shall be exempt from stamp duty. (aa) A stamp duty of twenty five cents is imposed upon the protest of every note, bill of exchange, check, or draft, and upon every marine ETTLINGS, DECISIONS, ETC. 355 protest. If several notes, bills of exchange, drafts, &c., are protested at the same time, and all attached to one and the same certificate, stamps should be affixed to the amount of twenty-five cents for each note, bill, draft, &c., thus protested. 9 I. B. E. 166. The certificate of notice to the parties usually appended to a notary's certificate of protest forms no part of the protest, and requires additional stamps to the amount of five cents. 9 I. E. E. 166. EXEMPTIONS. Accidental injuries to persons, tickets or contracts for insurance against. « I. E. E. 161. Acknowledgment of a deed. 9 I. E. E. 163. Affidavits. 9 I. A E. 161. Assignment of a mortgage, where it or the instrument it secures has been once duly stamped. July 14, 1870, § 4. Bill of lading to any port in British North America. 9 I. E. E. 161. Bill of lading, domestic or inland. 9 I. E. E 161. Bond of administrator or guardian when the value of the estate and ef- fects, real and personal, does not exceed $1,000. 9 I. B. E. 161. Certificate of weight or measurement of animals, wood, coal, or hay. 9 I E. E. 163. Certificate of record of a deed. 9 I. E. E. 163. Endorsement upon a stamped obligation in acknowledgment of its ful- fihnent. 9 I. E. E. 163. Endorsement of any negotiable instrument. 9 I. E. E. 163. Enrollment and licenses of vessels. 6 I. E. E. 134. Qaugers' returns. 9 I. E. E. 163. Legal documents: Writ or other original process by which any suit, either civil or crimi- nal, is commenced in any court either of law or equity. Confession of judgment or cognovit. Writs or other process on appeals from justice courts or other courts of inferior jurisdiction to a court of record. 9 I. E. E. 163. Letters testamentary when the value of the estate and effects, real and personal, does not excefed $1,000. 9 I. B. E. 163. Measurers' returns. 9 I. B. B. 163. Notice by landlord to tenant to quit. 9 I. E. B. 166. Passage tickets to ports in British North America. 9 I. B. E. 163. Probate of will or letters testamentary where the estate and effects for or in respect of which such probate or letters of administration are applied for do not exceed the value of $1,000. 9 I. E. B. 163. Promissory notes used as deposit notes to mutual insurance companies when policy is subject to duty. 9 I. E. B. 163. Promissory notes for a less sum than $100. July 14, 1870, § 4. Beceipt for the satisfaction of any mortgage, judgment or decree of any court. 9 I. B. E. 163. Eeceipts for the delivery of property. 9 I. E. B. 163. Sheriff's return on writ or other process. 9 I. B. E. 163. Warehouse receipts. 9 I. E. E. 163, Warrant of attorney accompanying a bond or note, if the bond or note is stamped. 9 I. B. E. 163. Weighers' returns. 9 I. E. E. 1 63. Official documents, instruments, and papers issued by officers of the United States Government. 9 I. E E. 163. Official documents, papers, and instruments issued by the officers of any state, county, town, or other municipal corporation, in the exercise of func- 356 U. S. INTEEUAL KEVEKUE LAWS. tions strictly belonging to them in their ordinary governmental or muni- cipal capacity. 9 I. R. R. 162. Papers necessary to be used for the collection from the United State* government of claims by soldiers, or their legal representatives, for pen- sions, back pay, bounty, or for property lost in the service. 9 I. R. R. 162. Receipts for any simi of money, or the payment of any debt. July 14,, 1870, § 4. SCHEDULE C, as amended July 13, 1866, § 9 ; July 14, 1870, § 1. MEDICINES OR PKEPAKATIONS. For and upon every packet, (a) box, bottle, pot, phial, or other enclosure, containing any pills, powders, tinctures, troches, loz- enges, sirup, cordials, bitters, anodynes, tonics, plasters, lini- ments, salves, ointments, pastes, drops, waters, essences, spirits, oils, or other medicinal preparations or compositions whatso- ever, made and sold, or removed for consumption and sale, by any person or persons whatever, wherein the person making or preparing the same has, or claims to have, any private formula or occult secret, or art for the making or preparing the same, or has or claims to have any exclusive right or title to the making or preparing the same, or which are prepared, uttered, vended, or exposed for sale under any letters patent, or held out or recommended to the public by the makers, venders or propri- etors thereof as proprietary medicines, or as remedies or specifics for any disease, diseases, or affections whatever affecting the the human or animal body, as follows : Where such packet, box, bottle, pot, phial, or other enclosure, with its contents, shall not exceed, at retail price, or value, the sum of twenty-flve cents, one cent 1 Where such packet, box, bottle, pot, phial, or other enclosure, with, its contents, shall exceed the retail price or value of twenty-five cents, and not exceed the retail price or value of fifty cents, two cents •. 2 Where such packet, box, bottle, pot, phial, or other enclosure, with its contents, shall exceed the retail price or value of fifty cents, and shall not exceed the retail price or value of seventy- five cents three cents 3 Wbere such packet, box, bottle, pot, phial, or other enclosure, with its contents, shall exceed the r etail price or value of seven- ty-five cents, and shall not exceed the retail price or value of one dollar, four cents 4 Where such package, box, bottle, pot, phial, or other enclosure, with its contents, shall exceed the retail price or value of one dollar, for each and every fifty cents or fractional part thereof over and above the one dollar, as before mentioned, an addi- tional two cents. 2 (a) When proprietary stamps from a private die are used, if they are so affixed to the boxes, bottles, or packages that in opening the same, or in using the contents thereof, they shall and must be unavoidably and effect- ually destroyed, no cancellation is necessary ; but if they cannot be so af- fixed, they shall be cancelled in the ordinary manner by writing or imprint- ing thereon the initials and date. When general proprietary stamps are used, they must be cancelled by writing or imprinting thereon the date and the initials of the party using or affixing them. When proprietary medi- EtTLlSfGS, DBCISIOSrS, ETC. 357 ■cines and preparations, perfdmery and cosmetics, are stamped according to -their retail price or value in the immediate vicinity of the place of manu- facture, no additional stamps are necessary upon them, whatever may be the price at which they are offered. 9 I. R R. 167. Every man who prepares or compounds bitters, using in their prepara- tion rectified spirits on which the tax has been paid, may stamp the same according to the provisions of this Schedule. Those wlio prefer to be taxed as rectifiers must not put their bitters up in the style of proprietary medi- cines, nor vend them as medicines. 11 1. R. R. 169. Bitters put up and sold in good faith only as a medicine should be stamped according to this Schedule, even though they may subsequently T)e sold and used to some extent as a beverage. 11 I. R. R 137. When a manufacturer of medicinal bitters purchases raw orunrectifled spirits and rectifies the same prior to their use in the nmnufacture of bit- ters, he is both manufacturer and rectifier, and liable for both taxes. 10 I. R. R. 65. ' Cough candies are liable to stamp duty. 11 I. R. R. 133. The manufacturer must determine the denomination and value of the stamp or stamps to be affixed to each original package of medicinal bitters by the price at which he sells the same He may sell his bitters in original packages, of any desired capacity, and purchasers may break the original packages and put the contents into phials or bottles for sale. A pur- chaser who thus breaks the original packages and puts the contents of the same up in phials, bottles, or other enclosures, and aflixes the manufacturer's labels, or a label bearing his own name and trade-mark, and then oSeis the same for sale, must affix revenue stamps according to his retail price of such packages. 10 I. R. R. 193. No stamp tax is imposed upon medicines sold to or for the use of any person which may be mixed and compounded for such person accord- ing to the written recipe or prescription of a physician or surgeon. But all medicinal articles, whether simple or compounded by any rule, authority, or formula, published or unpublished, which are put up in a style or man- ner similar to that of patent or proprietary medicines in general, or adver- tised in newspapers or by public handbills for popular sale and use as hav- ing any special proprietary claim to merit, or to any peculiar advantage in mode of preparation, quality, use, or efiect, whether such claim be real or pretended, should be stamped. 9 I. R. R. 166 ; Bout 276. Ink is not liable to stamp duty. 6 I. R. R. 163. • PERFX3MEET AUD COSMETICS. For and upon every packet, (S) box, bottle, pot, phial, or other enclosure, containing an essence, extract, toilet water, cosmetic, hair oil, pomade, hair dressing, hair restorative, hair dye, tooth-wash, dentifrice, tooth-paste, aromatic cachous, or any similar articles, by whatsoever name the same heretofore have heen, now are, or may hereafter be called, known or distin- guished, used or applied, or to be used or applied as perfumes or applications to the hair, mouth, or skin, made, prepared, and sold or removed for consumption and sale in the United States, where such packet, box. bottle, pot, phial, or other enclosure, with its contents, shall not exceed, at the retail price or value, the sum of twenty-five cents, one cent 1 Where such packet, box, bottle, pot, phial, or other enclosure, with its contents, shall exceed the retail price or value of twen- ty-five cents, and shall not exceed the retail price or value of fifty cents, two cents 3 358 TJ. S. ZNTEKNAL KBVEKUB LAWS. Where such packet, box, bottle, pot, phial, or other enclosure, with its contents, ^all exceed the retail price or value of fifty cents, and shall not exceed the retail price or value of seventy- five cents, three cents 3^ Where such packet, box, bottle, pot, phial, or other enclosure, with its contents, shall exceed the retail price or value of seven- ty-five cents, and shall not excted the retail price or value of one dollar, four cents 4 Where such packet, box, bottle, pot, phial, or other enclosure, with its contents, shall exceed the retail price or value of one dollar, for each and every fifty cents or fractional part thereof over and above the one dollar, as before mentioned, an addi- tional two cents 3 (6) Soap sola as a dentifrice must be stamped. 10 I. E. R. 5. Fancy, scented, honey, cream, transparent, and shaving soaps, are to be regarded as toilet soaps and not as perfumery or cosmetics, and need not be stamped. 3 I. R. R. 85. Bay rum is covered by the provision concerning toilet water, and is liable to stamp duty. 7 I. R. R. 11. Friction matches, (c) or lucifer matches, or other articles made in part of wood, and used for like purposes, in parcels or packages containing one hundred matches or less, for each parcel or package, one cent 1 When in parcels or packages containing more than one hundred and not more than two hundred matches, for each parcel or package, two cents 2 And for every additional one hundred matches or fractional part thereof, one cent 1 For wax tapers, double the rates herein imposed upon friction or lucifer matches; on cigar lights, made in part of wood, wax, glass, paper, or other materials, in parcels or packages contain- ing twenty-five lights or less in each parcel or package, one cent 1 When in parcels or packages containing more than twenty-five and not more than fifty lights, two cents 3 For every additional twenty-five lights or fractional part of that number, one cent additional 1 (c) Matches siwed out in blocks and dipped in sulphur must be stamp- ed. The fact that the phosphoric composition is put up in a separate bot- tle does not exempt them from liability. 3 I. R. R. 60. A lighter which consists simply of a thin strip of wood not prepared in any way to light by friction, and which can only be used as a cigar lighter in the same way that any strip of wood or paper might be used, is not liable to.stamp duty. 10 I. R. R. 301. Cigar lights and playing cards should be stamped according to the law now in force. 9 I. R. R. 166. Plating cakds. — For and upon every pack not exceeding fifty-two cards in number, irrespective of price or value, five cents 5- Canned meats, &c. — For and upon every can, bottle, or other single package, containing sauces, sirups, prepared mustard, jams, or jellies contained therein and packed or sealed, made, prepared, and sold, or offered for sale, or removed for con- RULINGS, DECISIONS, ETC. 359 sumption in the United States, on and after the first day of October, eighteen hundred and sixty-six, when such can, bottle or other single package, with its contents, shall not exceed two pounds in weight, the sum of one cent . 1 "When such can, bottle, or other single package, with its contents, shall exceed two pounds in weight, for every additional pound or fractional part thereof, one cent 1 360 u. s. intbrnatj eevbnue laws. DRAWBACK. Exportation of Articles on wliich Internal Revenue Tax has been Paid. Sec. 171. (AmendedMarch3,i86s,§ I ; July 13,1866, §1.) And 1)6 it further erhacted, That from and after the date on which this act takes effect, there shall be an allowance of drawback (a) on all articles on which any internal duty or tax shall have been paid, except raw or immanufactured cotton, crude petroleum or rock oil, refined coal oil, naphtha, benzine or benzole, distilled spirits, manufactured tobacco, snuff, and cigars of all descriptions, bullion, quicksilver, lucifer or friction matches, cigar lights, and wax tapers, equal in amount to the duty or tax paid there- on, and no more, when exported, the evidence that any such duty or tax has been paid to be furnished to the satisfaction of the Commissioner of Internal Kevenue by such person or per- sons as shall claim the allowance of drawback, and the amount to be ascertained under such regulations as shall, from time to time, be prescribed by the Commissioner of Internal Revenue, under the direction of the Secretary of the Treasury, and the same shall be paid by the warrant of the Secretary of the Treasury or the Treasurer of the United States, out of any money arising from internal duties not otherwise appropriated : Provided, That no allowance of drawback shall be made or had for any amount claimed or due less than ten dollars, any- thing in this act to the contrary notwitlistanding : And provided further. That any certificate of drawback for goods exported, issued in pursuance of the provisions of law, may, under such regulations as may be prescribed by the Secretary of the Treasury, be received by the collector or his deputy in payment of duties under this act. And the Secretary of the Treasury may make such regulations with regard to the form of said certificates and the issuing thereof as, in his judg- ment, may be necessary. Provided also, That no claim for drawback on any articles of merchandise exported prior to June thirtieth, eighteen hundred and sixty-four, shall be allowed unless presented to the Commissioner of Internal Kevenue within three months after this amendment takes effect. (a) No drawback is allowed on any domestic manufactures unless at the time of exportation there is an internal tax on such manufactures. 9 I.E.E. 194. The regulations for the exportation of goods under this section may be found in 6 1. R R. 106. Drawback upon Cotton Goods. [Sec. 6. (July 13, isee.) And he it further enacted, That upon articles manufactured exclusively from cotton, when exported, EULING8, BBCISIONS, ETC. 361 there shall be allowed as a drawback an amount equal to the internal tax which shall have been assessed and paid upon such articles in their finished condition, and in addition thereto a^, drawback or allowance of as many cents per pound upon the pound of cotton cloth, yarn, thread, or knit fabrics, manufac- tured exclusively from cotton and exported, as shall have been assessed and paid in the form of an internal tax upon the raw cotton entering into the manufacture of said cloth or other article, the amount of such allowance of drawback to be ascer- tained in such manner as may be prescribed by the Commis- sioner of Internal Eevenue, under the direction of the Secretary of the Treasury; and so much of section one hundred and seventy-one of the act of June thirty, eighteen hundred and sixty-four, " to provideif internal revenue to sup- port the government, to pay interest on the public debt, and for other purposes," as now provides for a drawback on manu- factured cotton, is hereby repealed.] What Drawback may be allowed upon Cotton Goods. [Sec. 1. Uuiy u, 1870.) £e it resol/ved hy the Senate a/ad Souse of Represemtatmes of the United States of America in Congress assembled, That the act of March thirty-first, eighteen hundred and sixty-eight, chapter forty-one, shall be held and construed not to prohibit the drawback provided for by section six of the act of July thirteenth, eighteen hundred and sixty- six, chapter one hundred and eighty-four, of as many cents per pound of cotton cloth, yarn, thread, or knit articles, manufac- tured exclusively from cotton and exported prior to May first, eighteen hundred and sixty-nine, as shall have been assessed and paid in the form of an internal tax upon the raw cotton entering into the manufacture of said cloth or other article : Provided, That such drawbacks shall be limited to exportations made not more than six months after the date of supplemental regulations issued by the Commissioner of Internal Revenue, and approved by the Secretary of the Treasury May sixteen, eighteen hundred and sixty-eight.] When Drawback may be Allowed. [Sec. 3. (Marcii 31, 1868.) And be it further enacted. That after the first day of June next, no drawback of internal taxes paid on manufactures shall be allowed on the exportation of any article of domestic manufacture on which there is no internal tax at the time of exportation ; nor shall such drawback be allowed in any case unless it shall be proved by sworn evidence in writing, to the satisfaction of the Commissioner of In-^ temal Eevenue, that the tax had been paid, and that such 362 U. S. INTEENAL REVENUE LAWS. articles of manufacture were, prior to the first day ot April, eighteen hundred and sixty-eight, actually purchased or actu- ,ally manufactured and contracted for, to be delivered for such exportation ; and no claim for such drawback or for any drawback of internal tax on exportations made prior to the passage of this act shall be paid unless presented to the Com- missioner of Internal Revenue before the first day of October, eighteen hundred and sixty-eight.] Designation of Collector to Superintend Exportation. [Sec. 15. (March 3,1865; Juiy 13, i866,§ 20.) AndTje it further enact- ed, That in any port of the United States in which there is more than one collector of internal revenue, the Secretary of the Treasury may desi|;nate one of said collectors to nave charge of all matters relating to the exportation of articles subject to tax under the laws to provide internal revenue ; and at such ports as the Secretary of the Treasury may deem it necessary, there shall be an officer appointed by him to super- intend all matters of exportation and drawback, under the direction of the collector, whose compensation therefor shall be prescribed by the Secretary of the Treasury, but shall not exceed, in any case, an annual rate of two thousand dollars, excepting at "New York, where the compensation shall be an annual rate of three thousand dollars. And all the books, papers, and documents in the bureau of drawback in the respective ports, relating to the drawback of taxes paid under the internal revenue laws, shall be delivered to said collector of internal revenue ; and any collector of internal revenue, or superintendent of exports and drawbacks, shall have authority to administer such oaths and certify to such papers as may be necessary under any rules and regulations that may be pre- scribed under the authority herein conferred.] Penalty for fraudulently claiming Drawback. Sec. 173. Andie it further enacted, That if any person or persons shall fraudulently claim or seek to obtain an allow- ance or drawback on goods, wares, or merchandise, on which no internal duty shall have been paid, or shall fraudulently claim any greater allowance or drawback than the duty actually paid, as aforesaid, such person or persons shall forfeit triple, the amount wrongfully or fraudulently claimed or sought to be obtained, or the sum of five hundred dollars, at the election of the Secretary of the Treasury, to be recovered as in other cases of forfeiture provided for in the general provisions of this act. BULIKGS, DECISIOKS, ETC. 363 Repeal of prior Acts. Sec. 173. And he it further enacted, Tliat the following acts of Congress are hereby repealed, to wit : The act of July- first, eighteen hundred and sixty-two, entitled "An act to provide internal revenue to support the government and to pay interest on the public debt," except the one hundred and fifteenth and one hundred and nineteenth sections thereof; and excepting, further, all provisions of said act which create the offices of Commissioner of Internal Revenue, assessor, assistant assessor, collector, deputy collector, and inspector, and provide for the appointment and qualification 6f said officers. Also, the act of July sixteenth, eighteen hundred and sixty- two, entitled " An act to impose an additional duty on sugars produced in the United States." Also, the act of December twenty-fifth, eighteen hundred and sixty-two, entitled, "An act to amend an act entitled 'An act to provide internal revenue to support the government and to pay interest on the public debt,' approved July first, eighteen hundred and sixty-two." Also, the act of March third, eighteen hundred and sixty -three, entitled " An act to amend an act entitled 'An act to provide internal revenue to support the government and to pay interest on the public debt,' approved July first, eighteen hundred and sixty-two, and for other purposes," excepting the provisions of said act which create the offices of deputy commissioner and cashier of internal duties and revenue agents, and provide for the appointment and qualification of said officers. Also, the twenty-fourth and twenty-fifth sections of the act of July four- teenth, eighteen hundred and sixty-two, entitled "An act increasing temporarily the duties on imports, and for other purposes. Also, the second section of the act of March third, eighteen himdred and sixty three, entitled " An act to prevent and punish frauds upon the revenue, to provide for the more certain and speedy collection of claims in favor of the TJnited States, and for other purposes," so far as the same applies to officers of internal revenue. And, also, the act of March seventh, eighteen hundred and sixty-four, entitled " An act to increase the internal revenue, and for other purposes ; " togeth- er with all acts and parts of acts inconsistent herewith : Provided, That all the provisions of said acts shall be in force for levying and collecting all taxes, duties, and licenses properly assessed or liable to be assessed, or accruing under the provisions of former acts, or drawbacks, the right to which has already accrued or which may hereafter accrue under said acts, and for maintaining and continuing liens, fines, penalties, and forfeitures incurred under and by virtue thereof. And fop carrying out and completing all proceedings (a) which have been 364 TJ. S. rSTTEKNAL BBVEKTJE liAWS. already commenced or that may be commenced to enforce sucli fines, penalties, and forfeitures, or criminal proceedings under said acts, and for the punishment of crimes of which any party shall be or has been found guilty. And provided further^ That no office created by the said acts and continued by this act shall be vacated by reason of any provisions herein contained, but the officers heretofore ap- pointed shall continue to hold the said offices without re- appointment. And provided further, That whenever the duty imposed by any existing law shall cease in consequence of any limita- tion therein contained before the respective provisions of this act shall take effect, the same duty shall be, and is hereby, con- tinued until such provisions of this act shall take effect ; and where any act is hereby repealed, no duty imposed thereby shall be held to cease, in consequence of such repeal, until the respective corresponding provisions of this act shall take effect. And provided further, That all manufactures and produc- tions on which a duty was imposed by either of the acts re- pealed by this act, which shall be in the possession of the man- ufacturer or producer, or of his agent or agents, on the day when this act takes effect, the duty imposed by any such former act not having been paid, shall be held and deemed to have been manufactured or produced after such date ; and when- ever by the terms of this act a duty is imposed upon any arti- cles, goods, wares, or merchandise manufactured or produced, upon which no duty was imposed by either of said former acts, it shall apply to such as were manufactured or produced and not removed from the place of manufacture or production, on the day when this act takes effect. And provided further, That no direct tax whatsoever shall be assessed or collected under this or any other act of Congres's heretofore passed, until Congress shall enact another law re- quiring such assessment and collection to be made ; but this shall not be construed to repeal or postpone the assessment or collection of the first direct tax levied, or which should be levied, under the act entitled " An act to provide increased revenue from imports, to pay interest on the public debt, and for other purposes," approved August fifth, eighteen hundred and sixty- one, nor in any way to affect the legality of said tax or any process or remedy provided in said acts, or any other acts, for the enforcement or collection of the same in any State or States and Territories and the District of Columbia ; but said first tax, and any such process or remedy, shall continue in all re- spects in force, anything in this act to the contrary notwith- standing. (a) The proviso ofthis section does not apply to a suit instituted under the 4th and 5th sections of the act March 3, 1863, to recover money paid by EULIKGS, DECISIONS, ETC. 365 the plaintiff to the defendant under an illegal contract. There is no ground for the recovery at common law, and the special remedy given by the stat- ute is repealed. Kimbro v. Colgate, 5 Blatch. 239. Repeal of Inconsistent Acts. [Sec. 16. (March 3, ises.) And be it further enacted. That all provisions of any former act inconsistent with the provisions of this act are hereby repealed : Provided, however. That no duty imposed by any previous act, which has become due or of which return has been or ought to be made, shall be remitted or released by this act, but the same shall be collected and paid, and all fines and penalties heretofore incurred shall be enforced and collected, and all offences heretofore committed shall be punished, as if this act had not been passed ; and the Commissioner of Internal Revenue, under the direction of the Secretary of the Treasury, is authorized to make all necessary regulations and to prescribe all necessary forms and proceed- ings for the collection of such taxes and the enforcement of such fines and penalties for the execution of the provisions of this act.] Commissioner may Make Regulations. Sec. 174:. And be it further enacted. That the said Com- missioner of Internal Revenue, under the direction of the Sec- retary of the Treasury, is authorized to make all such regula- tions, not otherwise provided for, as may become necessary by reason of the alteration of the laws in relation to internal reve- nue, by virtue of this act. Sec. IT'S. Expi/red hy limitation, April 1, 1865. Regulations for Assessment and Collection. Sec. 176. And he it further enacted. That when any tax or duty is imposed by law, and the mode or time of assessment or collection is not therein provided, the same shall be estab- lished by regulation of the Secretary of the Treasury. Sec. 177. Repealed July 13, 1866, §§ 1 to 8, inclusive. Foreign Consuls. t Sec. 178. And he it further enacted. That consuls of for- eign, countries in the United States, who are not citizens thereof, shall be, and hereby are, exempt from any income tax imposed by this act which may be derived from their official emolu- ments, or from property in such countries : Provided, That the governments which such consuls may represent shall extend similar exemption to consuls of the United States. 366 XJ. S. INTBENAL REVENUE LAWS. Prosecutions of Suits. Informers' Sliares. Sec. 179. (Amended July 13, 1866.) And be it further enaoted, That, where it is not otherwise provided for, it shall be the duty of the collectors, in their respective districts, and they are here- by authorized, to prosecute for the recovery of any sum or sums that may be forfeited ; and all fines, penalties, and forfeitures which may be imposed or incurred shall and mAj be sued for and recovered, where not otherwise provided, in the name of the United States, in any proper fonn of action, or by any ap- propriate form of proceeding, before any circuit or district court of the United States for the district within which said fine, penalty, or forfeiture may*have been incurred, or before any court of competent jurisdiction. And where not otherwise provided for, such share (a) as the Secretary of the Treasury shall, by general regulations, pro- vide, not exceeding one moiety nor more than five thousand dollars in any one case, shall be to the use of the person, to be ascertained by the court which shall have imposed or decreed any such fine, penalty, or forfeiture, who shall first inform of the cause, matter, or thing whereby such fine, penalty, or for- feiture shall have been incurred ; and when any sum is paid without suit, or before judgment, in lieu of 'SlUo, penlly, [pen- alty,] or forfeiture, and a share of the same is claimed by any person as informer, the Secretary of the Treasury, under gene- ral regulations to be by him prescribed, shall determine whether any claimant is entitled to such share as above limited, and to whom the same shall be paid, and shall make payment accord- ingly. It is hereby declared to be the true intent and meaning of the present and all previous provisions of internal revenue acts granting shares to informers that no right accrues to or is vested in any informer in any case until the fine, penalty, or forfeiture in such case is fixed by judgment or compromise and the amount or proceeds shall have been paid, when the in- former shall become entitled to his legal share of the sum ad- judged or agreed upon and received. Frovided, That nothing herein contained shall be construed to limit or affect the power of remitting the whole or any por- tion of a fine, penalty, or forfeiture conferred on the Secretary of the Treasury by existing laws. The Commissioner of Inter- nal Revenue |Jiall be, and is hereby, authorized and empowered to compromise, under such regulations as the Secretary of the Treasury shall prescribe, any case arising under the internal revenue laws, whether pending in court or otherwise. The several circuit and district courts of the United States shall have jurisdiction of all offences against any of the provisions of this act committed within their several districts. KULINGS, DECISIONS, ETC. 367 Provided, That whenever in any civil action for a penalty the informer may be a witness for the prosecution, the party against whom such penalty is claimed may be and shall be ad- mitted as a witness on his own behalf. Every person who shall receive any money or other valuable thing under a threat of in- forming or as a consideration for not informing against any violation of this act, shall, on conviction thereof be punished by a fine not exceeding two thousand dollars, or by imprison- ment not exceeding one year, or both, at the discretion of the court, with costs ot prosecution. (a) The following schedule of mformer's shares has been prescribed : Of the first $500 50 per cent. Of the next 1,500 40 " Of the next 2,000 30 " Of the next 2,000 25 " Ofthenexte,000 20 •' Of the next 2,000 15 " Ofthe next 2,000 10 " Ofall above 12,000 and not exceeding 55,000 : 5 " 4 I. B. R. 63. This schedule applies to all informers' shares of fines, penalties, for- feitures and proceeds of forfeitures accruing under the provisions of inter- nal revenue laws. 4 I. R. R 109. The shares allotted to informers shall in all cases be subject to a pro- portionate deduction for costs and charges properly payable from the fine, penalty, or forfeiture, and no such share shall be paid until such deduction is made. 6 I. R. R. 74. Internal revenue ofiioers may claim and receive informers' shares. The information given must be of the cause, matter, or thing whereby the fine, penalty or forfeiture shall have been incurred, and, in order to be declared an infomer, a person must prove that he was the first to give substantially the information required by the statute. The information given must be voluntarily given for the purpose of having it acted upon in order to recover the fine, penalty, or forfeiture, and must be so far definite and rele- vant that the ofl[icer or person acting upon it can, with reasonable and or- dinary diligence, find the property forfeited or the person who has incurred the fine, penalty, or forfeiture, as well as evidence sufficient to obtain judg- ment against either the person or property; and must actually, directly, and proximately lead to the recovery of the fine, penalty, or forfeiture, and be so far material that without it the fine, penalty, or forfeiture, would not have been recovered. The information must be given to the United ^States, that is to some person representing the United States for the pur- pose of administering the internal revenue laws. A communication from one revenue officer to another, or from any revenue officer to a United States attorney, or mee versa, is not first informing within the meaning of the statute. If the officer who first learns the facts makes the discovery by his own diligence and investigation, then he is the first informer. So far as the information is discovered by process of law through the examina- tion of witnesses, neither the witnesses nor the officers making the exami- nation can be regarded as informers. 11 1. R. R. 188. Neither a United States attorney nor his assistant should in any case accept a retainer or fee from any person claiming to be an informer, nor should they appear for an informer in any case in which the United States are a party or are interested. 12 I. R. R. 3. 368 u. s. rsTTEErJAij kbveitoe xaws. The informer's share is not given to the person who first gives in- formation on which the property is seized, but to the person who first in- forms of the cause, matter, or thing whereby the forfeiture was incurred. The statute intends that the reward shall be given to the person who gives information of the cause for which the government can condemn the property. The condemnation is what the government aims at. U. S. v. 100 Bbls. 6 I. R R. 179; s. c. 2 Bt. 14; V. S. v. Four Cutting Machines, 9 I R R 145 ; U. S. v. Hook et al. 15 Pitts. L. J. 361. Any person whatsoever may share in a fine, penalty, or forfeiture, pro- vided it be made to appear that such person first informed of the cause, matter or thing whereby such fiine, penalty or forfeiture shall have been incurred. Officers of the revenue are included in the general words of the act, and are enabled to participate in the distribution of fines, penalties, and forfeitures. As there exist in the act no words of limitation as to the persons who may become informers, so also there is no limitation in re- gard to the method by which the information shall have been acquired. To whom the information shall be imparted the act does not say, but its fair import is that the information must be imparted to some one author- ized to and who does thereupon take official action to recover the fine or penalty or to enforce the forfeiture. An officer who of his own motion and by his own diligence acquires information and imparts the same to the proper official is entitled to an informer's share. U. S. ». Chassell, 9 I. R. R 175; s. c. 6 Blatch. 421 ; U. 8. v. 34 Bbls. 9 I. R R 169; U. S. v. 100 Bbls. 8 1. R. R. 20. In many cases an officer cannot be considered an informer merely be- cause he as an officer acquires information that may be useihl to the gov- ernment. If this knowledges is acquired in the ordinary discharge of his. duty touching the very subject-matter, or under a special retainer to in- vestigate that matter, he cannot be considered as entitled to an informer's share. V. S. v. Four Cutting Machines, 9 I. R. R. 145 ; U. S. «. 100 Bbls. 8 I. R. R. 20 ; U. S. v. 34 Bbls. 9 I. R R 169. The regulation issued by the Secretary of the Treasury on Sept. 2, 1867 (6 I. R. R 74), is valid. U. S. v. 12 Bbls. 6 1. R. R. 203. The informer's share is to be determined by the regulations in force at the time when the proceeds are paid into the marshal's hands, and cannot be affected by any regulations subsequently made. TJ. S. v. 8 Bbls. 10 I. R R 157 ; s. c. 1 Bt. 472 ; U. S. v. 20 Bbls. 6 I. R. R 140 ; U. S. «. 25,00(f cigars, 5 Blatch. 500 ; IT. S. v. 8 Bbls. 6 I. R R. 140. The informer's right does not attach until the case has passed into judgment. The striking out of a judgment leaves the case as if no judg- ment had been entered. The informer is only entitled to the share which is allowed by the law in force at the time when the final judgment is en- tered. U. 8 V. 25,000 Gallons of Spirits, 7 I. R. R. 306 ; s. c. 1 Bt. 367 ; U. S. 9. One Still, 6 I. E. R. 59, 67 ; s. c. 1 Bt. 367. Although informers may be considered parties in interest, they are not parties on the record, and it cannot be said with propriety that they have a BTJLINGS, DECISIONS, ETC. SG9 vested right in the sense in which the law considers such rights. Their interest is conditional, and a judgment of condemnation only ascertains and determiaes tlie fact on which the right is consummated should no re- mission take place. The right does not become fixed until the receipt of the money by the collector. The power of the Secretary of the Treasury to remit a forfeiture extends to the shares of officers and others who were informers as well as to the interest of the United States. 'This power is not a judicial one, but one of mercy. It admits of no appeal to any court. It is the exercise of his discretion in a matter entrusted to him alone, and from this there can be no appeal. Dorsheimer et al. ■». U. S. 7 "Wall, 166 ; s. C. 10 I. E. E. 131 ; s. c. 3 A. L. T. (C. E.) 74 ; V. S. ■». Harris, 5 1. E. E. 21. Where the value of the forfeited property is less than $250, the portion that accrues to the United States must be appUed to the costs of prose- cution, as provided in the ninety-first section of the act of 1799, arid the share of the informer is not subject to a proportionate reduction for costs. U. S. 1). One Tub, 10 I. E. E. 139. When the sum received by the government under a compromise is less than the amount due as taxes, convincing proof will be necessary to show that the informer is entitled to any share thereof. U. S. «. 95 Bbls. 8 I E. E. 105. The marshal may charge for reasonable and necessary expenses incurred in the removal of the property when such removal is proper, and for pre- miums actually paid to insure the property at its market value, and for the sums actually paid to a keeper to w^tch the same. To sustain the last item the proof must satisfactorily show that a prudent precaution in regard to all concerned in the property, justified the marshal in placing a keeper over it ; that the keeper actually continued in charge of it for the time specified ; and that the sum charged therefor is reasonable for the service and has actually been paid. U. S. v. 300 Bbls. 8 I. E. E. 105 ; s. c. 1. Bt. 72. Debt Contracted by Sale of Goods without Payment of Tax Invalid. Sec. 1 80. And be it further enacted, That if any person liable and required to pay any tax upon any article, goods, ■wares, and merchandise, or manufactures, as herein provided, shall sell, or cause or allow the same to be sold, before the tax to which such article, goods, wares, merchandise, or manufac- ture is legally liable is paid, with intent to avoid such tax, or in fraud of the revenue herein provided, any debt contracted in the sale of such article, goods, wares, merchandise, or manu- factures, or any security given therefor, unless the same shall have been hona fide transferred to the hands of an innocent holder, shall be entirely void, and the collection thereof shall not be enforced in any court. And if any such article, goods, wares, merchandise, or manufacture has been paid for, in whole or in part, the sum so paid shall be deemed forfeited, and any 34 370 U. S. rSTEBl^AIi EEVEKUE LAWS. person wlio will sue for the same in an action of debt shall re- cover of the seller the amount so paid, one-half to his own use and the other half to the use of the United States. Sec. 181. JEbpired hy UmitaUon, June 30, 1865. Disbursing Agents. [Seo. 4. (March 3, 1865.) And ie it further enacted. That so much money as may be necessary for the payment of the law- ful expenses incident to carrying into effect the various acts relative to the assessment and collection of the internal reve- nues after the thirtieth day of June, eighteen hundred and sixty-five, until the first day of July, eighteen hundred and sixty-six, and not otherwise provided for, be, and the same is hereby, appropriated from any money in the treasury not other- wise appropriated. And it shall be the duty of such of the collectors of internal revenue as the Secretary of the Treasury may direct to act as disbursing agents to pay the aforesaid ex- penses without increased compensation therefor, and to give good and sufficient bonds and sureties for the faithful perform- ance of their duties as such disbursing agents, in such sum and form as shall be prescribed by the First Comptroller of the Treasury, and approved by the Secretary.] Meaning of Terms. Sec. 1 82. And he itfwrther enacted, That wherever the word State is used in this act, it shall be construed to include the Territories and the District of Columbia, where such con- struction is necessary to carry out the provisions of this act. RemoTal of Suits. Seized Goods Irrepleviable. [Sec. 67. CJuiy 13. isee'; as amended July 14, 1870, § 20.) And he it further enacted, That in any case, civil or criminal, at law or in equity, where suit or prosecution shall be commenced in any court {a) of any State against any officer of the United States, appointed un- der or acting by authority of the act entitled " An act to provide internal revenue to support the government, to pay interest on the public debt, and for other purposes," passed June thirtieth, eighteen hundred and sixty-four, or of any act in addition thereto or in amendment thereof, or against any person acting under or by authority of any such officer,- on account of any act done under color of his office, or against any person holding property or estate by title derived from any such officer, con- cerning such property or estate, and affecting the validity of this act or acts of which it is amendatory, it shall be lawful for the defendant, in such suit or prosecution, at any time before RULINGS, DECISIONS, ETC. 371 ■ trial, upon a petition to the circuit court of the United States in and for the district in wliich the defendant shall have been served with process, setting forth the nature of said suit or pro- secution, and verifying the said petition by affidavit, together with a certificate, signed by an attorney or counsellor at law of some court of record of the State in which such suit shall have been commenced, or of the United States, setting forth that, as counsel for the petitioner, he has examined the proceedings against him, and carefully inquired into all the matters set forth in the petition, and that he believes the same to be true ; which petition, affidavit, and certificate shall be presented to the said circuit court if in session, and if not, to the clerk thereof, at his office, and shall be filed in said office, and the cause shall thereupon be entered on the docket of said court, and shall be thereafter proceeded in as a cause originally com- menced in that court ; and it shall be the duty of the clerk of said court, if the suit were commenced in the court below by summons, subpoena, petition, or by any other form of action, except as hereinafter provided, to issue a writ of certiorari to the State court, requiring said court to send to the said circuit court the record and proceedings in said cause ; or if it were commenced by capias, or by any similar form of proceeding by which a personal "arrest is ordered, he shall issue a writ of habeas corpus cum causa, a duplicate of which said writ shall be delivered to the clerk of the State court, or left at his office^ by the marshal of the district, or his deputy, or some person, duly authorized thereto; and thereupon it shall be the duty of the said State court to stay all further proceedings in such: cause, and the said suit or prosecution, upon delivery of such process, or leaving the same as aforesaid, shall be deemed and taken to be moved to the said circuit court, and any further proceedings, trial, or judgment therein in the State court shall be wholly null and void. And if the defendant in any such suit be in actual eustody on mesne process therein, it shall be the duty of tlie marshal,, by virtue of the writ of habeas corpus cum causa, to take the body of the defendant into his custody, to be dealt with in the said cause according to the rules of law and the order of the circuit court, or of any judge thereof in vacation., AH attachments made and all bail and other security^ given upon such suit or prosecution shall be and continue in like force and effect as if the same suit or prosecution had pro- ceeded to final judgment and execution in the State court ; and if, upon the removal of any such suit or prosecution, it shall be made to appear to the said circuit court that no copy of the record and proceedings therein in the State court can be ob- tained, it shall be lawful for said circuit court to allow and re- 372 U. S. INTEENAL EBVEmJE LAWS. « quire the plaintiff to proceed de novo, and to file a declaration of his cause of action, and the parties may thereupon proceed as in action originally brought in said circuit court ; and on failui-e of so proceeding, judgment of nolle prosequi may be entered against the plaintiffj with costs for the defendant : Provided, That an act entitled " An act further to provide for the collection of duties on imports," passed March second, eighteen hundred and thirty-three, shall not be so construed as to apply to cases arising under an act entitled " An act to pro- vide internal revenue to support the government, to pay inter- est on the public debt, and for other purposes," passed June thirtieth, eighteen hundred and sixty-four, or any act in addi- tion thereto or in amendment thereof!, nor to any case in which the validity or intei-pretation of said act or acts shall be in issue : Provided fv/rther, That if any officer appointed under and by virtue of any act to provide internal revenue, or any person acting under or by authority of any such officer, shall receive any injury to his person or property, for or on account of any act by him done, under any law of the United States, for the collection of taxes, he shall be entitled to maintain suit for damage therefor in the circuit court of the United States, in the district wherein the party doing the injur}' may reside or shall be found. And all property taken or detained by any officer or other person under authority of any revenue law of the United States shall be irrepleviable, and shall be deemed to be in the custody of the law, and subject only to the orders and decrees of the courts of the United States having jurisdiction thereof. And if any person shall dispossess or rescue, or at- tempt to dispossess or rescue, any property so taken or detained as aforesaid, or shall aid or assist therein, such person shall be deemed giiilty of a misdemeanor, and shall be liable to such punishment as is prov^ed by the twenty-second section of the act for the punishment of certain crimes against the United States, approved the thirtieth day of April, Anno Domino one thousand seven hundred and ninety, for the wilful obstruction or resistance of officers in the service of process.] (a) A marshal sued for the rent of premises held by him after the ex- piration of the lease of a tenant whose property he had seized, cannot remove the case mider the provisions of this section. Kelsey v. Dallon, 7 I. B. R. 86. Suits cannot be instituted against internal revenue officers in the United States courts for acts done in their official capacity under the internal rev- enue laws by citizens of the same State. Ins. Company ». Ritchie, 5 Wall. 541 ; s. c. 5 I. R.R. 198; Homthal ®. Collector, 9 Wall. 560. Cases arising under the internal revenue laws, if commenced in a State court against an officer appointed or acting under those laws, or against RULINGS, DEOISIOIfS, ETC. 373 persons acting under such an officer, may be removed on petition of the defendant into the circuit court, and the jurisdiction of the circuit court over such controversies, when all the prescribed conditions for the removal concur in the case, is clear beyond a doubt, irrespective of the citizenship of the parties. City of Philadelphia v. Collector, 5 Wall. 720 ; Stevens ». Mack, 6 I. E. R. 181 ; s. c. 5 Blatch. 514 ; Cutting, ». Gilbert, 3 I. R. R. 93 ; s. c. 5 Blatch. 339 ; Clark et al. v. Gilbert, 4 I.ll. R. 42 ; s. c. 5 Blatch. 330. OiBcers not to be sued in United States Courts. [Sec. 68. Quiy 13, isee.) And he it further enacted, That the fiftieth section of an act passed June thirtieth, eighteen hun- dred and sixty -four, entitled " An act to provide internal reve- nue to support the government, to pay interest on the public debt, and for other purposes," is hereby repealed : Provided, That any case which may have been removed from the courts of any State, under said fiftieth section, to the courts of the United States shall be remanded to the State court from which it was so removed, with all the records relating to such cases, unless the justice of the circuit court of the United States in which such suit or prosecution is pending shall be of opinion that said case would be removable from the court of the State to the circuit court under and by virtue of the sixty- seventh section of this act. And in all cases which may have been removed from any court of any State under and by virtue of said fiftieth section of said act of June thirtieth, eighteen hundred and sixty-four, all attachments made, and 3II bail or other security given upon such suit or prosecution, shall be and continue in full force and efifect until final judgment and exe- cution, whether such suit shall be prosecuted to final judgment in the circuit court of the United States or remanded to the State' ^court from which it was removed.] Since the passage of this section, and the repeal of the fiftieth sec- tion of the act of June 30, 1864, the Circuit Courts have no jurisdic- tion of cases arising under the Internal Revenue laws to recover back duties illegally assessed, and paid under protest, unless the plaintiif and defendant therein are citizens of difl^erent States. Such actions must be commenced in the State courts, if the parties are citizens of the same State ; but the defendant may, at anytime before trial, upon petition to the Ch'cuit Court of the district in^hich he is served with process, re- move the cause, upon due proceedings therein, into such Circuit Court, and the provision is that the cause thereafter shall be heard and determ- ined as a cause originally commenced in that court. Assessors may per- haps be liable for an illegal assessment, in cases where they have no juris- diction to make any assessment. Assessor r. Osborne, 9 Wall. 567. 374 TJ. S. lifTEENAL EEVEKUE LAWS. Proceedings npon the issuing of a Writ of Error. [Sec. 69. (July 13, isee.) And he it further enacted, That when- ever a writ of error shall be issued for the revision of any judg- ment or decree in any criminal proceeding where is drawn in question the construction of any statute of the United States, in a court of any State, as is provided in the twenty-fifth section of an act entitled " An act to establish the judicial courts of the United States," passed September twenty-fourth, seventeen hundred and eighty-nine, the defendant, if charged with an vffence bailable by the laws of such State, shall not be released from custody until a final judgment upon such writ, or until a bond, with suflSeient sureties, in a reasonable sum, as ordered and approved by the State court, shall be given ; and if the of- fence is not so bailable, until a final judgment upon the writ of error. Writs of error in criminal cases shall have precedence upon the docket of the Supreme Court of all cases to which the government of the United States is not a party, excepting only such cases as the court, at their discretion, may decide to be of public importance.] Repeal of Inconsistent Acts. [Sec. 70. Uuiy 13, isee.) And he it further enacted, That this act shall take efi^ect, -where not otherwise provided, on the first day ■ of August, eighteen hundred and sixty-six, and all provisions of any former act inconsistent Mith the provisions of this act are hereby repealed : Provided, however. That all the provisions of said acts shall be in force for collecting all taxes, duties, and licenses properly assessed or liable to be assessed, or accruing under the provi- sions of acts, the right to which has already accrued, or which niay hereafter accrue, under said acts, and for maintaining and continuing liens, fines, penalties, and foi-feitures incurred under and by virtue thereof, and for carrying out and completing all proceedings which have been already commenced, or that may be commenced, to enforce such fines, penalties, and forfeitures, or criminal proceedings under said acts, tind for the punishment of crimes of which any party shall be or has been found guilty : And provided further. That whenever the duty imposed by anv existing law shall cease in consequence of any limitation therein contained before the respective provisions of this act shall take efi^ect, the same duty shall be, and is hereby, con- tinued until such provisions of this act shall take effect; and where any act is hereby repealed, no duty imposed thereby shall be held to cease, in consequence of such repeal, until the respective corresponding provisions of this act shall take eflfect : And provided further, That all manufactures and produc- tions on which a duty was imposed by either of the acts repealed RULINGS, DECISIONS, ETC. 375 by this act, which shall be in the possession of the manufac- turer or producer, or of his agent or agents, on the day when this act takes effect, the duty imposed by any such former act not having been paid, shall be held and deemed to have been manufactured or produced after such date ; and whenever, by the terms of this act, a duty is imposed upon any articles, goods, wares, or merchandise, manufactured or produced, upon which no duty was imposed by either of said former acts, it shall apply to such as were manufactured or produced, and not removed from the place of manufacture or production, on the day when this act takes effect. And the Commissioner of In- ternal Revenue, under the direction of the Secretary of the Treasury, is authorized to make all necessary regulations and prescribe all necessary forms and proceedings for the collection of such taxes and the enforcement of such fines and penalties for the execution of the provisions of this act.] Rewards for Detection and Fmusliment of Offenders. [Sec. 7. (March 2, 1867.) And he it further enacted, That the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, is hereby authorized to pay such sums, not exceeding in the aggregate the amount appropriated therefor, as may in his judgment be deemed necessary for de- tecting and bringing to trial and punishment persons guilty of violating the internal revenue laws, or conniving at the same, in cases where such expenses are not otherwise provided for by law. And for this purpose there is hereby appropriated one hundred thousand dollars, or so much thereof as may be neces- sary, out of any money in the treasury not otherwise appro- priated.] Penalty for Dealing m Fraudulent Wrappers, etc. [Sec. 16. guiy 13, isee.) And he it further enacted. That in case any person shall sell, give, or purchase or receive any box, barrel, bag, or any vessel, package, wrapper, cover, or envelope of any kind, stamped, branded, or marked in any way so as to show that the contents or intended contents thereof have been duly inspected, or that the tax thereon has been paid, or that any provision of the internal revenue laws has been complied with, whether such stamping, branding, or marking may have been a duly authorized act or may be false and counterfeit, or otherwise without authority of law, said box, barrel, bag, ves- sel, package, wrapper, cover, or envelope being empty, or con- taining any thing else than the contents which were therein when said articles had been so lawfully stamped, branded, or marked by an officer of the revenue, such person shall be liable 376 V. S. INTBRIfAL REVENUE LAWS. to a penalty of not less than fifty nor more than five hundred dollars. And any person who shall make, manufacture, or produce any box, barrel, bag, vessel, package, wrapper, cover, or envel- ope, stamped, branded, or marked, as above described, or shall stamp, brand, or mark the same, as hereinbefore recited, shall, upon conviction thereof, be liable to penalty as before provided in this section. And any person who shall violate the foregoing provisions of this section, with intent to defraud tlie revenue, or to defraud any person, shall, upon conviction thereof, be liable to a fine of not less than one thousand nor more than five thousand dollars, or imprisonment for not less than six montlis nor more than five years, or both such fine and imprisonment, at the discretion of the court. And all articles sold, given, pur- chased, received, made, manufactured, produced, branded, stamped, or marked in violation of the provisions of this sec- tion, and all their' contents shall be forfeited to the [Jnited States.] Sales upon Distraint or Forfeiture. [Sec. 17. (July 13, isea.) And he it further enacted, That wher a any whiskey, oil, tobacco, or other articles of manufacture or produce requiring brands, stamps, or marks of whatever kind to be placed thereon, shall be sold upon distraint, forfeiture, or other process provided by law, the same not having been branded, stamped, or marked as required by law, the officer selling the same shall, upon sale thereof, fix or cause to be fixed the brands, stamps, or marks so required, and deduct the ex- pense thereof from the proceeds of such sale.] Repeal of Inconsistent Acts. [Sec. 34. (March 2, 1867.) And he it fuHfier etiaoted, Tha,t sM acts or parts of acts inconsistent with this act, and all acts and parts of acts imposing any tax upon advertisements, or the gross receipts of toll roads, are hereby repealed : Provided, That this act shall not be construed to aflfect any act done, right accrued, or penalty incurred under former acts, but every such right is hereby saved ; and all suits and prosecutions for acts already done in violation of any former act or acts of Con- gress relating to the subjects embraced in this actinay be com- menced or proceeded with in like manner as if this act had not been passed ; and all penal clauses and provisions in the exist- ing laws, relating to the subjects embraced in this act, shall be deemed applicable thereto.] EULINGS, DECISIONS, ETC 377 TAXES REPEALED, Repeal of Special Taxes. [Sec. 1. (July 14, 1870.) Be it enacted hy the Senate and House of liemresentatvoes of the United States of America in Congress assenibled, That on and after the first day of May, eigteen hun- dred and seventy-one, the special taxes imposed by the seventy- ninth section of the act entitled " An act to provide internal revenue to support the government, to pay interest on the public debt, and for other purposes," approved June thirty, eighteen hundred and sixty-four, as amended by section nine of the internal revenue act approved July thirteen, eighteen hundred and sixty-six, and as amended by section two of the internal revenue act approved March two, eighteen hundred and sixty-seven, be, and the same are hereby, repealed ; but this act shall not be held to repeal or in any way afiect the special tax on brewers imposed by said section, or the special taxes imposed by the act approved July twenty, eighteen hun- dred and sixty-eight, entitled " An act imposing taxes on dis- • tilled spirits and tobacco, and for other purposes," or the acts amendatory thereof.] Repeal of Tax on Sales. [Sec. 2. Guiy m, i#7o-) And l)e it further enacted. That on and after the first day of October, eighteen hundred and seventy, the several taxes on sales imposed by the internal revenue laws now in force, saving and excepting such taxes on sales as are by existing law paid by stamps, and the taxes on sales of leaf tobacco, manufactured tobacco, snuff, cigars, foreign and domestic distilled spirits, and wines, imposed by said act, ap- proved July twenty, eighteen hundred" and sixty-eight, and acts amendatory thereof, be, and the same are hereby, re- pealed.] Repeal of Tarious Taxes. [Sec. 3. (July 14, 1870.) And te it further enacted, That on and after the first day of October, eighteen hundred and seventy, the taxes imposed by the internal revenue laws, now in force, herein specified, be, and the same are hereby, repealed, namely : on articles in Schedule A ; the special tax on boats, barges, and flats ; on legacies and successions ; on passports ; and on gross receipts.] 378 IT. S. LNTEESTAL REVENUE LAWS. Kepeal of Stamp Duty. [Sec. 4. amy 14, is/o.) And he it further enacted, That on and after tlie first day of October, eighteen hundred and seventy, the stamp tax imposed in Schedule B, on promissory notes for a less sum than one hundred dollars, and on receipts for any sum of money, or for the payment of any debt, and the stamp tax imposed in Schedule C, on canned and preserved fish, be, and the same are hereby, repealed. And no stamp shall be required upon the transfer or assignment of a mortgage, where it or the instrument it secures has been once duly stamped. And the proprietor or proprietors of articles named in said Schedule C, who shall furnish his or their own die or design for stamps to be used especially for his or their own proprietary articles, shall be allowed the following commissions, namely : On amounts purchased at one time of not less than fifty dollars nor more than five hundred dollars, five per centum ; and on amounts over five hundred dollars, ten per centum on the whole amount purchased: Provided, That lucifer or friction matches, and cigar lights, and wax tapers, may be removed from the place of manufacture for export to a foreign country without payment of tax, or affixing stamps thereto, under such rules and regulations as the Commissioner of Internal Revenue may prescribe ; and all provisions of existing laws inconsistent herewith are hereby repealed.] Kepeal of Tax on Barges, &c. [Sec. 25. Quiy 14, 1870O And he it further enacted, That section fifteen of the act approved July fourteen, eighteen hundred and sixty-two, entitled "An act increasing, temporarily, 'the duties on imports, and for other purposes," and section four of the act in amendment thereof, approved March three, eighteen hundred and sixty-five, be, and the same are hereby, so amended that no ship, vessel, steamer, boat, barge, or flat be- longing to any citizen of the United States, trading from one port or point within the United States, to another port or point within the United States, or employed in the bank, whale, or other fisheries, shall hereafter be subject to the tonnage tax or duty provided for in said acts ; and the proviso in section one hundred and three of the " Act to provide internal revenue to support the Government and to pay the interest on the public debt, and for other purposes," approved June thirty, eighteen hundred and sixty-four, requiring an annual special tax to be paid by boats, barges, and flats, is hereby repealed.] Repeal of Legacy and Succession Taxes . [Sec. 27. (July h< 1870.) And he it further enacted, That all provisions of existing laws whereby any tax or duty is laid KULIKGS, BEOISIONS, ETC. 379 upon bequests or devises, or transfers by deed, grant, or gift, made or intended to take effect after the deatb of the grantor, or any real or personal property, in trust or otherwise, for pub- lic uses of a literary, educational, or charitable character, or upon any real or personal estate -which may become subject to any trust as aforesaid under any past or future disposition, which, if made in favor of an individual, would confer on him a succession, be, and the same are hereby, repealed, and no taxes heretofore levied thereunder, but not paid, shall be col- lected.] Section ] 7 does not, however, apply to the taxes mentioned in section 27 of the act of July 14, 1870, which absolutely repeals all provisions of existing laws for the assessment and collection of legacy and succession taxes, whether accrued or not, upon bequests, devises, gifts, &c., for public uses of a literary, educational or charitable character, and provides that taxes levied thereon before the passage of said act, but unpaid, shall not be collected. The attention of assessors is hereby called to the fact that legacy and succession taxes accrue upon property passing by reason of the death of a person dying since June 30, 1864, and that they accrue at the time of such death without regard to the time when they become due and payable. A person dies September 30, 1870, leaving real and personal property, which, however, the successors, legatees, or distributees, do not come into posssession of until October 1. The tax is, nevertheless, to be assessed except in cases falling under section 27 of the act of July 14, 1870, and should be paid at the time it becomes due, under the provisions of sections 125 and 127 of the act of June 80, 1864, as amended. (Compila- tion of 1867, pp. 109 and 113.) Assessors are hereby instructed to give their special attention to the assessment of this class of taxes, and of all other taxes accruing under the provisions of law repealed^by the act of July 14, 1870. 12 I. R. R. 93, 103. Provision Dealers. [Sec. 1. (July 14, 1870.) Be it enacted hy the Senate and JBmise of JRepresentatvoes of the United States of America in Congress assembled, That there shall not be assessed or collected, under or by virtue of section four of an act approved March thirty- one, eighteen hundred and sixty-eight, entitled " An act to exempt certain manufacturers from internal tax,' and for other purposes," any internal tax upon pork-packers, lard-renderers, or those engaged in smoking hams, curing meats, or others known as in the provision trade, as manufacturers within the meaning of the said section ; and if any such tax shall have been assessed, but not collected, the same is hereby remitted.] ADDENDA. Office of Inteenal Eevehtjb, Washington, September 7, 1870. W. Raymond Lee, Esq., Assessor of Third District, Boston, Mass. SiE : Tour letter of the 1st instant, respecting the assessment and col- lection of the tax imposed upon dividends by section 15 of the act of July 14, 1870, was received on the 5th. It is enacted in said section " that there shall be levied and collected, /(w and during the year 1871, a tax of two and one-half per centum on the amount of all interest or coupons paid on bonds or other evidence of debt issued and payable in one or more years after date, by any of the corporations in this section hereinafter enumerated, and on the amount of all dividends of earnings, income, or gains herenfter declared by any bank, trust company, savings institution, insurance company, railroad company, canal compapy, turnpike company, canal navigation company, and slack-water company, whenever and wherever the same shall be payable, and to whatsoever person the same may be due, including non-residents, whether citizens or aliens, and on all undivided profits of any such corporation which have accrued and been added to any surplus, contingent, or other fund ; and every such corpora- tion, having paid the tax as aforesaid, is hereby authorized to deduct and withhold from any payment on account of interest, coupons, and dividends, an amount equal to the tax of two and one-half per centum on the same." You will notice that by the terms of the section, the tax upon the in- terest and coupons paid upon bonds or other evidences of debt issued by the companies, corporations, &c., therein enumerated, is to be levied "/or and dwing the year 1871 ;" that the tax upon the dividends of earnings of said companies, &c.,, is also to be levied and collected dwing the year 1871, but it is to be levied upon all dividends declared after the passage of the act. It is, therefore, ruled that no tax is to be withheld from interest or cou- pons which fall due during the last five months of the present calendar year, but that they are to be returned, like interest from other sources, in the next annual income returns of the parties receiving them. It is also held that although a tax of two and one-half per centum is imposed upon dividends declared by said companies, corporations, &c., on and after August 1, 1870, it is to be " levied and collected . . during the year 1871." It is not necessary to decide at present at what time in 1871 the taxes upon those dividends of the last five months of 1870 are to be levied. Further legislation may perhaps be required upon that point. 13 I. R. E. 93. Office of Internal Revenue, Washington, September 15, 1870. W. H. Thompson, Esq., ^essor Eleventh District, Easton, Penn. Sib: Referring to the letter addressed to you on the 15th ultimo, re- specting the tax on sales, and published in The Internal Revenue Record, ADDENDA. 381 * vol. xii., page 70, I liave to say that I have carefully re examined that part of it which relates to the tax on the sales of wholesale dealers, and am of the opinion that it is not in accordance with the intent of Congress. It is, therefore, now held that such sales are included among those ex- empted by section 2 of the act of July 14, 1870, and that no tax is to be assessed ;apon those made on and after October 1, 1870. Sales of leaf tobacco, manufactured tobacco, snuff, cigars, foreign and domestic distilled spirits and wines, will continue to be'liable after that date. J. W. Douglass, Acting Commissioner. 13 I. R. R. 93. The proprietor's name and his trade-mark have been allowed to be printed or marked on wooden packages of manufactured tobacco, put up and prepared by the manufacturer for sale, or removal for sale or consump- tion, and the proprietor's name has also been allowed on the printed label or caution -notice. The use, however, of the proprietor's name on pack- ages and on labels is limited to those cases where the person claiming to be the proprietor is the owner of the factory, or has a legal right or title to the particular brand of goods manufactured, or where the tobacco, or snuff, or cigars are made expressly for the person claiming such proprietorship. G-oods manufactured for general sale to any customer who will purchase them are not entitled to have the purchaser's name appear on them as pro- prietor. 13 I. R. R. 101. Dealers cannot sell small quantities of cavendish or plug tobacco, and, after having received pay for the same, cut it up with a hand cutting ma- chine without paying the tax of thirty-two cents per pound. The manu- facturer can sell in original stamped packages only. A retail dealer is al- lowed to break wooden packages and retail therefrom ; but he is not al- lowed to change the character or condition of the article by any process of manipulation, by cutting, pressing, grinding, crushing, rubbing, or other- wise preparing it, either before or after sale. 13 I. R. R. 101. No other openings are necessary in a vessel for fermented liquor except the bung, the air vent, and the spigot-bole or tap. If other openings exist in the vessel, they are to be regarded as additional spigot-holes, and are cftsallowed. Where such surplus opening exists in the cask, it is not suf- ficient that the same shall be closed or plugged, but the portion of the cask containing it must be removed and replaced with a piece having no open- iite. 12 I. R. R. 103. "parties desiring to produce spirits from pine-apples and bananas must comply with the regulations relating to distilled spirits, and are not enti- tled to the exemptions allowed to distillers of brandy from apples, peaches, or grapes. 1^1. R. R. 69. A distiller's bond is not void because it does not follow the words of the section, but in Ueu thereof employs general language having no greater actual meaning. When the bond prescribed by the act is conditioned in detail for the performance of all the duties imposed by the statute, thefail- «ure to enumerate aU those duties in detail does not invalidate the bond. In sUch case the words " conformity to all the provisions of the act," are, in meaning and legal effect, the same as doing and performing the several things in detail enumerated. Grouping the various duties in one word, and describing them as " conformity to all the provisions of the act," is exactly equivalent to an enumeration of each in detail. The bond, more- over, is not invalid, even if the distiUer might have claimed a license upon 382 ADDENDA. tender of a bond less compreliensive in its scope. The parts not required by the statute may be treated as surplusage. If the terms are so compre- hensive as to embrace a duty which if separately specified would have been rejected therefrom as an excess of surplusage, the court will regard such requirement embodied in the general words used as not in point of law included, and hold that a breach which is clearly one that would be included in the terms of the bond described by the statute is covered by the conditions. U. S. v. Mynderse, 12 I. R. R. 94, 104. I N DE X. ABATEMENT OF TAXES, 73. power of Commissioner to, 89, 91. form of application, 90, 91. erroneously or illegally assessed, 73. of uncollectible taxes, 73. of tax charged on more than one list, 73. tax changed in amount, 73. affidavits to application for, 90. ■when collectors may take credit for, 90. on account of insolvency or absconding, 71. does not release liability, 90. when tax is paid pending application, 90. claim for, on account of insolvency, &c., 73. not after six months, 72. to be put in schedules, 73. . schedules of taxes abated to be filed, 90. ACCEPTORS of Foreign BiUs to stamp them, 334.. ACKNOWLEDaMENTS exempt ii-om stamp duty, 334, 355. ACCOUNTS, monthly, of Commissioner, 19. of assessors, 44. what shall contain, 44, 45. accompanied by vouchers, 46. final, 47. yearly, 58. 4) assistant assessors, 47. what shall contain, 45, 47. to be rendered monthly, 47. form of, 48. referred to Commissioner, 48, 49. disbursing officers, 106. receipts and payments, 106. account current, 54. when transmitted, 55. what contain, 55. no appeal from decision on, 56. collectors, 50. form of revenue account, 50. compensation and expense account, 51. yearly, 53. bonded account, 359. of beer stamps, 118. distilled spirits stamps, 183, 183. tobacco stamps, 338. documentary stamps, 334, 336. ganger's fee, 307. 384 INDEX. ACCOUNTS— Continued. storekeeper's fees and expenses, 305, 20 6. storekeepers, kept by, 301. furnished by, 303, 303. transactions in distillery, 164. supervisors, 199. detectives, 199. surveyors, 199. brewers, to be kept by, 115. distillers, to be kept by, 158. rectifiers, 194. wholesale liquor dealer, 194. compounder of liquors, 1^4. dealers in tobacco, 343. manufacturers of tobacco, 234. cigars, 248. separate, kept at treasury, 89. ACTS, inconsistent repeal of, 361. construction of, July 20, 1868, 363. extended beyond collection districts, 263. meaning of tei-ms in, 301. March 3d, 1833, not to apply, 873. Aug. 6th, 1846, adopted, 106. March 3d, 1797, adopted, 108. AFFIDAVITS, exempt, 354, 855. jurat containing certificate stamped, 343, who may take under revenue law, 109. assessor's chief clerk, 44, 47. on claims for abatement, 73. on claims for refunding, 90. AGENTS, revenue, 32. no more appointed, 300. knowledge of, is principal's, 100. may stamp documents, 313. AGREEMENT, stamp duty on, 335, when in duplicate, 335, 337. assignment of, 337. insurance permit is, 337. waiver of protest is, 336, 337. what assignments are, 337. ALCOHOL. See Dismllbd Spirits. ALB. See Fermented Liquors. ALIENS, when liable to income tax, 383, 384.' liable to tax on dividends, 303. APOTHECARIES may use still for pharmaceutical purposes, 214. APPEALS to assessors, 40. when not allowed, 41. to commissioner, 89. how made, 90. no suit until made, 91. suit may be brought after, 92. none from judge in attachment, 34. in criminal cases, 374. motion for a new trial, 79. in arrest of judgment, 79. APPRAISEMENT of value or damage, 335, 337. ASSESSMENT districts, 34. INDEX. 385 ASSESSMENT— Continued. districts, 34. assistant assessors, residents of, 34. how made, 38. when parties fail to make returns, 39. additional within fifteen months, 43. monthly, on capacity of distillery, 153. in case of deficiency in distiller's returns, 161. none where returns are correct, 163. mode of ascertaining deficiency, 163. on imitation wines, 197. on dealers in tobacco, 319, 331. ASSESSOES, appointment of, 34. ' ^ to divide districts into assessment districts, 34. by whom succeeded in case of vacancy, 34. salary of, 43. commissions of, 44. not to exceed $4,000, 44. certain expenses paid, 44. Secretary of Treasury may fix compensation, 45. in certain states and territories, 45. liability for erroneous approval of accounts, 48. assistant assessor's accounts, 48. apportionment of commission, 56. no payment to, without certificate of Commissioner, 56. communications of, franked, 110, penalty against, for fraud or extortion, 43. for taking money to appoint assistant assessors, 47. when to commence assessment, 38. to reduce returns to legal tender currency, 35. may issue summons, 39. appeal to, 40. to furnish lists to collectors, 41. may make additional lists within 15 months, 43. to list property owned by non-residents, 37. may administer oaths, 109. may enter distillery, &c., 76, 185. to approve distiller's bonds, 137. when not to approve distiller's bonds, 137, 156. to keep plan of distillery, 143. to make surveys of distilleries, 144. when not to assess special tax, 150. to assess distiller's capacity tax, 153. to examine distiller's returns, 161. to have charge of locks and seals, 166. to report suspension of work in distillery, 166. commissions on stamps for distilled spirits, 188. to reduce capacity of distillery, 184. suspended for fraud, 300. not to discharge duties of other assessor, 300. to register tobacco manufactories, 336. to keep abstract of tobacco manufacturer's returns, 337. may examine persons, books, &c., 30. ASSISTANT" ASSESSORS, appointment of, 34, 35. reduction of number, 35. Commissioner may assign to special duty, 35. to make assessments, 38. • duty when parties fail to make out lists, 39. 35 386 rsDEX. ASSISTANT ASSESSORS— CoraiJTOed make lists of property of non-residents, 87. to classify lists, 38. salary of, 44. settlement of accounts of, 47. penalty for fraud and extortion, 43. may enter distillery, &c., 76, 185. may administer oaths, 109. to preserve distiller's notice, 134. to close distillery on suspension, 166. to keep record of tobacco manufactories, &c., 236. to examine tobacco dealer's stock, 244. to keep record of cigar mfmufactories, 248. maker, 230. to examine stock of cigar manufacturers, 353. ASSIGNMENT, stamp duty on, of agreement, &c., 337. for, benefit of creditors,. 337. of land warrants, 337. of judgment, 338. of policy of insurance, 350. of lease, 350. ATTACHMENT for refusal to obey assessor's summons, 30. proceedings in, 34. for refusal to obey supervisor's summons, 34, 199. no appeal from decision in, 34. AUCTIONEERS liable as dealers in liquor, 318. dealers in tobacco, 348. BANKS, tax on circulation, 379. average deposits, 379. capital, 279. savings, 380. state, 283. to make return, 379. lien in case of non-payment by, 59. to exhibit books, 60. or bankers doing business as brokers, 379. BRANDS on vessels for fermented liquors, 133. distilled spirits, on entry into warehouse, 167. on withdrawal from warehouse, 175. rectified spirits, 175. by wholesale dealers, &c., 176. ^^^^ upon change of package, 196. on casks of distilled spirits to be efiaced, 191. BRANDT, distillers of, from apples, &c., 135. from what exempted, 138. form of notice, 187. bond of, 139. capacity of distillery of, 149. books of, 160. computation of actual product of, 164. placing of, by, into casks, 171. stamping by, 179. special tax on, 315. BEER. See Fermented Liquor. t BREWERS, special tax of, 268. , to give notice, 113. nsTDBX. 387 BREWERS— Continued. bonds of, 113. books kept by, 114. verification of accounts of, 116. penalty for eyasion of tax, 117, 119. removal of beer without stamps, 130. not to bottle liquors, 123. when liable to wholesale dealer's tax, 317. forfeiture for non-payment of tax, 133 BRIBERY, penalty for, 80. BILLS OF EXCHANGE, stamp duty on, 338, 340. drawn out of and payable in U. S., 334. BILL OP LADING, stamp duty on, 341* from British North American ports, 341, 3S4, 355. BILL OP SALE, of vessel, stamp duty on, 341. of other personal property, 341. BONDS of Commissioner, 18. of collector, 35. as disbursing agent, 370. of deputy collector, 36. for property under seizure, 94, 103. for property worth less than $300, 103. of brewers, 113. of distillers, 137. approval of, 140. no distilling until given, 150. no withdrawal of distilled spirits on, 174. for seized distilleries, 191. of storekeepers, 301. of gangers, 306. for exportation of spirits, 309. manufacturers of tobacco, 334. inspectors. 111. penalty for fraudulent, 358. sureties not liable after expiration of license, 336. stamp duty on, 341, 343. distillery warehouse, 168. when copies shall be evidence, 109. of state officers not liable to stamp duty, 309. of manufacturers of cigars, 346. manufacturers of matches, etc., for stamps, 335. officers selling documentary and other stamps, 338. BROKERS, tax on sales of, 377. BOOKS, kept by brewers, 114. distillers, 158. storekeepers, 164. rectifiers, wholesale dealers, &c., 194. warehouse by storekeeper, 301. tobacco manufacturers, 337. cigar manufacturers, 348. assessor may demand production of, 39. supervisors may demand production of, 199. kept by dealers in tobacco, 343. CANCELLATION of beer stamps, 119. stamps for distilled spirits, 176, 179. tobacco, &c, 339. 388 IKDEX. CANCELLATION— Continued. of stamps for cigars, 250. docvunentary stamps, 311. proprietary stamps, 311. CAPACITY, producing, of distillery, how determined, 144. tax on, 153. tax on production according to, 161. reduction of, 184. CHAMPAGNE. See "Wines. CHARTER PARTY, stamp, duty on, 344 CERTIFICATES of stock, stamp duty on, 342. profits, stamp duty on, 842. damage, stamp duty on, 843. deposits, stamp duty on, 348. other description, stamp duty on, 848. magistrate's record on appeal, stamp duty on, 343. *■ . marriage, stamp duty on, 343. . clerk to instruments, 344. copies of instruments, 848. measurement or weight of animals, &c, 324, 355. record of deed, 324, 355. caption of deposition, 843. loan, 339. CHECKS, stamp duty on, 338. CRIMES. See Penalties. CIGARS, tax on, 246. labels for, 232, 250. tax on imported, 258. inspection of, 246. how packed, 248. penalty for illegally packing, 248. how labels on, are afiixed, 250. when forfeited, 251. manufactured on commission, 252. Inanufactories of, to be numbered, 248. makers of, to be registered, 320. manufacturers of, to pay special tax, 220. CISTERNS, receiving, 154. construction of, 154. capacity of, 155. to be under lock, 154. withdrawal of spirits from, 154, 167. COLLECTION DISTRICTS, creation of, 23. President may alter, 23. reduction of number, 34, 305. tax on articles outside of, 263. COLLECTORS, appointment of, 24. reduction of number of, 24, 205. * to give bond, 25. pay over money daily, 19. regulations for transmittal of money, 30. appointment of deputy, 26. to take bond from deputy, 26. lists to be furnished to, 41. salary of, 50. expenses of, 50. account of, 50. ISDBX. 389 COLLECTOES— Continued.. disbursing agent, 54, 370. apportionment of commissions, 56. to receipt for lists, 57. advertise time to pay taxes, 57. to collect by distraint, 58. sxiit against, to recover taxes, 61. fees of, in distraint, 63. sale under distraint, 65. sale of real estate, 66. collect irom property of non-residents, 69. transmit lists to other collectors, 70. report collections, 70. charged vrith taxes, 71. account for taxes, 72. claims for deduction on taxes, 73, 73. transfer U. S. property to successor, 74. delinquent proceedings against, 74. penalty for extortion, 75. may enter buildings, 76, 185. suspension of, 300. penalty for compounding offences, 77. devolve duties on deputy, 81. to prosecute suits, 83. regulations in regard to suits, 83, 87. docket of seizures, 87. biU of sale, evidence, 93. ■when collect direct tax, 98. seizures of property for fraud, 93. sale of perishable property, under seizure, 94. receipt to warehouse men, &c, on seizm'e, 95. to return property on verdict for claimant, 101. proceedings on seizures less than $300, 103. penalty for embezzlement, 106. suits for money withheld by, 108. administer oaths, 109. franking privilege, 110. not interested in distilleries, &c, 110. case of death, who may act, 81. to sell beer stamps, 118. permit removal of fermented liquors, 130. collect tax of distillers monthly, 153. to have charge of locks and keys of distillery, 165. to retain entries of spirits into warehouse, 169. permit withdrawal of spirits from warehouse, 173. account for stamps for distilled spirits, 183. documentary stamps, 835, 333. not to discharge duties of other collectors, 300. designate storekeeper temporarily, 303. collect storekeeper's salary, &c., 205. superintend gauging, 306. to collect gaugers' fees, 306^ to sell tobacco stamps, 338. permit withdrawal of tobacco for export, 336. designate bonded warehouse for imported tobacco, 344. monthly account of articles in bond, 359. superintend exportation, 363. 390 lUDBX. COLLECTORS— Continued. disbursing agents, 370. pay expenses for assessments and collections, 370. COLLECTOR, DEPUTY, appointment of, 36. bonds, 36. duties of,. 37. penalty for extortion, 75. may enter buildings, 76, 185. penalty for obstructing, 76. compounding offences, 77. act as collector during temporary disability, 81. in case of vacancy, 81. salary of, wben acting as collector, 82. may administer oaths, 109. bond of, available to representatives of collector, 83. compensation of, 36. COMMISSIONER OF INTERNAL REVENUE superintends collection of taxes, 17. organization of office, 18. keep accounts, 18. give bond, 19. to have charge of real estate, 69. what claims for deduction presented to, 73. prescribed regulations for suits, 83. appeals to, for refunding, &c., 89. exempt distillers of brandy from regulations, 135. prescribe meters, 139. prescribe rules for inspection of spirits, &c., 134. make changes in distilling apparatus, 139. prescribe form of distiller's bond, 137. require new distiller's bond, 137. revise report of survey of distilleries, 144. prescribe mode of constructing room for cisterns, 154. provide locks and seals for distilleries, 155. approve distUlery warehouse, 153. prescribe rules for entry of distilled spirits into warehouse, 168. brands on casks for distilled spirits, 167. mode of cancelling stamps for distilled spirits, 176. tobacco, &c., 67, 359. books for wholesale dealers, &c., 194. form and amount of storekeeper's bonds, 301. appoint detectives, 300. prescribe fees for gaugers, 306. regulations for return of sales of tobacco, &c., 331. yearly inventory of tobacco, 337. books of account for manufacturers of tobacco, 337. prepare stamps for tobacco, 238. establish tobacco bonded warehouse, 336. prescribe form of yearly inventory of cigars, 348. . stamps for cigars, 250. change forms of stamps, labels, &c., 359. authorize compromise, 359. prescribe regulations for collection of tax, 361. authorize suit in equity to enforce tax, 363. give rewards for detection of frauds, 375. claims for drawback puesented to, 360, 361. INDEX. 391 •COMPOUNDER OF LIQUORS, special tax of, 314. procure and keep sign, 157 COMPROMISES, how made, 259. of penalties, 366. COMMISSIONS of assessors, 44. collectors, 50. mode of computing, 53. apportionment of, 56. none on payments before sale in distraint, 63. to be reported to Commissioner, 110. on stamps for fermented liquors, 117. distilled spirits, 183. on documentary and other stamps, 335. to parties who furnish their own dies, 335. CONSPIRACY, penalty for, 77. what is, 78. what constitutes, 80. CONSTITUTIONAL LAW, assessor's power to summon, constitutional 33, 83. , ' income tax is constitutional, 384. Congress cannot tax judicial process of State courts, 306. cannot tax judge's salary, 387. Congress cannot make contracts invalid, 337. declare what shall be evidence in State courts, 337. tax deed for taxes, 309. bond of county oflBcer, 309. power of assessors to appoint assistants, unconstitutional, 34 CONTRACTS, broker's note, stamp on, 377, 344. not invalidated by non-payment of special tax, 364. CONYEYANCE, stamp on, 344. what required, 845. only of realty sold, 345. how consideration computed, 345, 346. between tenants in common, 346. subject to mortgage, 346. from husband to wife through third person, 345. for unpaid taxes, 309. under judicial decree, 346. special covenants contained in, 847. duplicates, 337. of register in bankruptcy, 347. of assignee in bankruptcy, 347. of pew, 347. COUNSEL, when collector may employ, 83. commissioner may employ, 83. DEALERS in distilled spirits, special tax on, 315. tobacco, special tax on, 319. distilled spirits to keep books, 194. signs of, 157. tobacco to render statements of business, 331. to keep accounts, 343. DEBTS to be void, 369. DETECTIVES, appointment of, 300. accounts of, 199. DRAWBACK on alcohol and rum, 308. on articles that have paid tax, 360. 392 INDEX. DISTILLED SPIRITS, definition of, 133. proof defined, 134. tax on, 124. drawn off every third day, 154. removed to distillery warehouse, 154. account of amount manufactured, 158. to be kept, 158. manner of drawing from cisterns, 157. entry in warehouse, 168. withdrawn from warehouse on payment of tax, 172. branding, on withdrawal, 175. penalty for fraudulent removal of, 187. when seized, burden of proof on claimant, 187. purchase of more than 20 gals., 196. reinspection on change of package, 196. drawback on exportation of, 208. regulations for exportation of, 309. not to withdraw from warehouse until payment of tax, 174. stock on hand to be stamped, 311. forfeited to be sold subject to tax, 313. to be removed by day, 189. DISTILLATION OF SPIRITS, definition of, 133. when prohibited, 150, 151. account of, to be kept by storekeeper, 164. suspension of, 165. officers may examine progress of, 185. prohibited on Sunday, 187. computation of amount of, 161. penalty for illicit, 193. DISTILLER, definition of, 314. special tax on, 314. of brandy from grapes, special tax on, 215. what exempt from, 125, 128. liable for tax, 134. to attach meters, 134. to pay expense of meters, 139. to register stUl, 134. to give notice of intention to distil, 135. to give bond, 137. to famish plan of distillery, 143. not to distil until bond given, 150. to pay $3 per day during suspension, 153. to provide distillery warehouse, 153. to erect cistern, 154. sign of, 157. to keep books, 158. when may suspend work, 165. to give bond for payment of tax, 137. on warehouse spirits, 168. how may reduce capacity, 184. famish ladders, &c., to officers, 186. to make monthly returns, 314. penalty for illicit distilling, 192. DISTTLLERT, where may be located, 140, 143, to be registered, 134. plan of, 143. survey of, 144. INDEX. 393 DISTILLEEY— Continued. not within 600 feet of rectifying establishment, 161. where it may be, 151. warehouse for, 153. construction of cistern in, 154. construction of doors, &c., 156. signs on, 157. notice of change of ownership, 136. notice of change in, 136. tax to be lien on, 124. reduction of producing capacity, 184. inspection of tubs, &c., 185. officers may enter, 185. facilities to be furnished, 186. search for means of illicit distilling, 186. bonding of, seized, 191. what forfeited, 193, 194. DISTILLINa APPARATUS, only set up ga permit, 153. destroyed when forfeited, 191. DISTILLERY WAREHOUSE, how established, 153. entry of spirits in, 167. ' withdrawal from, 173. when discontinued, 310. DISTRAINT, proceedings in case of, 57, 58. what exempt from, 60. officers' fees in, 63. property seized irrepleviable, 63. sales under, 65. DISTRICT ATTORNEY reports suits to Commissioner, 83. regulations for conduct of suits, 84. keep docket, 84. y give information to Commissioner, 86. compromise suits, 359. EMBEZZLEMENT, penalty for, 106. proceedings in, 107. ENTRY of spirits into warehouse, 168. for withdrawal from warehouse, 173. for export, 847. at custom house, stamp on, 347. EYIDENCE of similar acts to prove fraud, 36, 79. range of such inquiry, 99. of accomplice, 79. collector's bill of sale, 93. deed of land, 67. principal bound by agent's knowledge, 100. when party omits to testify, 101. for commitment, 108. transcript of bonds, 108. of fraud, 161. burden of proof that tax has been paid, 187. testimony on motion for a new trial, 189. absence of stamp on packages of tobacco, 335. boxes of cigars, 353. EXEMPTIONS from distraint, 60. of distillers of brandy, 135, 138. bonds on legal procedings, 343. official instruments, 309. 394 XNBBX. EXEMPTIONS— Continued. legal papers relating to bounties, &c., 334. other papers, &c., 324, 855. medicines, &c., 882. EXPENSES of assessors, 44. voucters for, 46. of collectors, 50. vouchers for, 52. supervisors, detectives, and surveyors, 199. EXPORTATION, alcohol and rum, 208. tobacco and snuff, 236, 240. medicines, &c., 830. matches, &c., 331. articles subject to internal tax, 360. EXTORTION by assessors and assistant assessors, 43. collectors and deputy collectors, 75. officers, 77, 357. FRANKING PRIVILEGE of Commissioner, 18. of internal revenue officers, 110. FERMENTED LIQUORS, notice given before manufacture of, 113. tax on, 113. accounts by manufacturers of, 114. penalty for illicit manufacture of, 117. stamps for, 117. cancellation of stamps, 119. fraudulent removal of, 119, 130. removal without payment of tax, 131. marks on vessels for, 123. penalty for removing stamps, 123. bottling of, 123. FORFEITURES, property held or used for fraudulent purposes, 93. how enforced, 97. what interest forfeited, 99. of spirits mixed with others, 100. rights of purchaser after, 101. bonding of forfeited articles, 103. nonpayment of tax on fermented liquors, 133. collector to prosecute for, 82. unregistered still, 134. for fraudulent bond, 138. distilling apparatus set up without notice, 152. for working during suspension, 166. fraudulent removal of spirits, 187. for removal at night, 189. creating fictitious proof, 189. evading tax on distilled spirits, 190. detention for, 190. for not obliterating marks, &c., 191. for distilling without paying special tax, 193. fraudulent claim of drawback, 208. on distilled spirits, 208. sale of forfeited spirits, 313. for fraudulent removal of tobacco, &c., 234. fraudulent representations on sale of tobacco, 345. of unstamped cigars, 253. fraudulent removal of cigars, 352. INDEX. 395 FO'RFEITV'KEB— Continued. for wilful violation of law, 355. for executing false instruments, 258. for omission of proprietary stamp, 350. sale of articles less than $300, 103. FRAUD, fraudulent returns, 35. who subject to penalties for, 106. in entry in distiller's books, 158. in books of wholesale dealers, &c., 194. in use of weights, 190. in bonds, 258. in ganger's return, 306. in entries of manufacturers of tobacco, 324. cigars, 348. in manufacture of distilled spirits, 193. imitation wines, 197. tobacco on commission, 342. cigars on commission, 353. in execution of bonds, 258. in use of cigar boxes, 375. collectors suspended for, 200. OATJGrERS, appointment of, 306. fees of, 206. instruments of, 124, 125. have charge cistern room, 164. draw off spirits, 164. gauge and brand spirits, 167. stamp and mark spirits, 175. may have charge of stamps, 183. make daily report of stamps used, 183. return marginal stubs to collector, 183. may be transferred by supervisor, 199. fees to be paid by owner of articles gauged, 206. OAS, tax on, 374. HYDROMETERS, what used, 124, 135. INCOME TAX, who liable to, 383. what subject to, 385, , exemptions from, 390. deductions from, 391. for what time assessed, 397. returns of, 397. by guardian, &c., 297. appeal from assessment, 299. declaration under oath, 300. foreign consuls, 300, 865. interest on bonds, 300. dividends of corporation, 301. undivided profits of corporation, 301. dividends of insurance companies, 301. contingent fund of fire insurance, &c., 303. returns by corporations, 304. where residents should make return, 284. of decedent, 384. 396 KfDEX. INCOME IkX.— Continued. on interest, 385. services of minor child, 386. salaries, 386. rent, 286. debts, 287. gifts, 286, 288. profits of corporations, 388. sales of real estate, 389. ' deduction of taxes, 291. losses, 292. expenses, 294. repairs, 296. questions may be asked, 298. penalty for non-return, 297, 299. notice for return, 299. on funds of corporation, 302. INFORMERS, shares of, 366. ■who may be, 367, 368. penalty for levying black-mail, 367. IN JUNCTION, none to restrain collection of tax, 91. none against assessor having jurisdiction, 93. assessor not having jurisdiction liable, 373. INSPECTORS, appointment of general, 22. no more appointed, 200. of tobacco, 111, 200. INSTRUMENTS, stamp duty on, 335. INSURANCE, stamp on policy, 347, 348. new policy for one lost, 348. permit changing terms, 837. assignment of policy, 850. entry in register, 348. accidental, exempt, 324, 355. INVENTORY of cigar manufacturer, yearly, 248. of tobacco manufacturer, 337. INDICTMENT may be used to recover penalty, 264. for joint offence, 36. not on repealed statute, 36. may charge crime in various ways, 78. one good count will support verdict, 79. averment in, for perjury, 88." for penalty, under sec. 48, 101. objections to action of grand jury, when taken, 108. may be sent up by prosecuting officer, 116. limitation to, 140. distinct offences having different penalty, 181. INFORMATION to enforce forfeitures, 97. pleading in, 97. motion to quash, does not lie, 98. amendment of, 98. not cover new res, 98. may cover new cause of forfeiture, 98. only one against same res, 98. mode of disputing claimant's right, 98. valid, if one count good, 99. not include two distinct offences in one count, 181. INDEX. 397 LABELS for tobacco, 233. cigars, 333, 250. LEASE, stamp on, 849. assignment of, 350. - LIENS for non-payment of taxes, 59. not until due, 63. deed of land takes effect fromihe tipe lien attached, 67. ^ on distillery premises, 134. \r "^ y<)_ /,^^ 2^f $~~" LISTS, classification of, 37. ■^-'^^^'^Jtc.*^^^^^-'^^^ •^' -' mode of making, 38. assessors ftirnish collectors, 41. collectors' receipt for, 57. correction of errors in, 73. LOCKS AND SEALS provided by Commissioner, 155. mode of obtaining, 133, 156. to be accounted for by assessor, 166. penalty for tampering with, 190. MANUFACTURERS of cigars, definition of, 330. special tax on, 330. bond of, 346. yearly inventory of, 348. tobacco, definition of, 319. special tax on, 319. bond of, 334. when not taxed as dealer, 320. furnish statement of business, 334. sign of, 326. yearly inventory of, 337. books of, 337. labels of, 333. stills, definition of, 216. special tax on, 316. to give notice, 152. MASH made only at distillery, 133. not removed from distillery, 183. 45 gals, equal 1 bush, grain, 161. 7 gals, equal 1 gal. molasses, 161. when 60 gallons equal 1 bush, grain, 161. MA-NIFEST, stamp on, 349. MATCHES, stamp on, 358. exportation of, 331. MEDICINES, stamp duty on, 856. exportation of, 380. what exempt, 333. MORTGAGES, stamp on, 349. assignment, 350. when record of, valid, 308. validated by stamping before collector, 333. restamping, not interfere with acquired rights, 415, 323. METERS, attached at expense of owners, 129. what required, 129. mode of obtaining, 130. mode of testing, 133. OATHS, who may administer, 109. * to returns, 37. brewer's returns, 116. 398 INDEX, OATHS— Continued. distiller's returns, 159. returns of manufacturers of tobacco, &c., 237, cigars, &c., 349. for income tax, 397. OFFICEES, render account of fees, 110. not to be interested in distilleries,&c., 110, 357. may administer oaths, 109. suits of money withheld by, 108. penalty for embezzlement by, 106. when collect direct tax, 103. penalty for bribery of, 80. levying black mail, 77. obstructing, 76. may enter buildings, 76, 185. penalty for extortion by, 43, 75. may inspect worm-tub, 185. demand facilities to examine distillery, 186. search for means of fraud, 186. detain suspected spirits, 190. examine books of wholesale dealer, &c., 194. penalty for being guilty of fraud, 357. ' OFFICIAL INSTKUMENT8 exempt from stamp, 309. PASSAGE TICKET, stamp duty on, 353. PLAYING CAEDS, stamp duty on, 358. PRACTICE, what assessor's summons should state, 33. attachment may be quashed, 34. postponement of cause for circuit judge, 79. when new trial granted, 79. parties out on bail cannot be committed until after verdict, 80. in informations, 97. of bonding seized property, 103. objections to actioh by grand jury, 108. commitment of offender, 108. presenting indictments, 116. discharging sworn panel, 188. making up evidence for new trial, 189. PENALTIES for fraudulent return, 35. malfeasance in office by assessors, &c., 43. for receiving money for appointment of assistant assessor, 47. for failure to pay tax, 64. malfeasance in office by collector, &c., 75. obstructing officers, 76, 185. demanding money to settle violations of law, 77. for personating officer, 77. conspiracy, 77. bribery, 80. perjury, 88. fraudulent use of property, 93. concealment or removal of property, 103. embezzlement, 106. all, applicable to corporations, 106. for being interested in distilleries, &c., 110. fraudulent statement of fees, 110. not keeping brewer's books, 117. affixing and cancelling brewer's stamps, 119. ISDBX. 39& PENALTIES— Continued. for fraudulent removal of fermented liquors, 119. brands on casks, 132. for fermented liquors, 123. for defacing brewers' stamps, 123. men- payment of tax on fermented liquors, 123. illicit bottling of fermented liquors, 133. for illicit distilling, 133 ,151. non-registration of still, 134. omission to give distillers notice, 136. fraudulent distillers' bonds, 138. distilling without bond, 150. setting up still without notice, 153. fraudulent construction of distillery, 156. fraudulent putting up distillers' signs, 157. fraudulent entries in distillers' books, 159. using material for mash in absence of storekeeper, 165. working during legal suspension, 166. fraudulently using distillers' stamps, 184. tampering with locks on distillery, 184. refusing to cleanse wo'rm tub, 185. allow examination of distillery, 186, fraudulent removal of distilled spirits, 187. removal of distilled spirits by night, 189. creating fictitious proofs, 189. evading tax on distilled spirits, 189. using false weights, &c., 190. omission to obliterate stamps on distilled spirits, 191. distilling without paying special tax, 193. fraudulent entries in books of rectifiers, &c., 195. sales of more than 30 gals, of distilled spirits, 196. omission to stamp on change of package, 196. evasion of tax on sparkling wines, 197. fraudulent removal of distilled spirits from warehouse, 203. malfeasance in office by ganger, 207. fraudulently claiming drawback on alcohol, &c., 308. for employing unregistered cigar makers, 330. manufacturers of tobacco, 324. not obtaining collector's certificate, 335. not giving bond, 225. putting up sign, 226. keeping books and making returns, 327. neglecting to affix labels, 233. ' fraudulent removal of tobacco, 234. removing tobacco without stamps, &c., 235. for omitting to destroy tobacco stamps, 236. fraud in manufacture of tobacco on commission, 343. omission to make entries by tobacco dealer, 342. stamp imported tobacco, 243. offering unstamped tobacco for sale, 345. false representation on sale of tobacco, 345. selling tobacco in unlawful packages, 345. manufacturers of cigars, 246. not obtaining collector's certificate, 347. giving bond, 247. putting up sign, 247. keeping accounts and making inventory, 348. 400 INDEX. PENALTIES— Continued. manufacturers of cigars, neglecting to affix label, 250. fraudulent removal of cigars, 351. for removal without paying special tax or giving bond, 252. for putting up cigars in unlawflil packages, 248. for fraud in manufacture of cigars on commission, 252. against officer for allowing removal of unstamped imported tobacco, 244. against officer for allowing removal of unstamped imported cigars, 253. for selling unstamped imported cigars, 253. false representations on sale of cigars, 255. wilful violation of law, 255. malfeasance in office, 257. fraudulent bonds, 258. fraud in distilling spirits, 256. failure to pay special tax, 264. refusal to pay tax on manufactures, 271. omission to stamp brokers' contracts, 377. refusal by banks and bankers to msCke returns, 279. making fraudulent income returns, 298. default by corporations to make return for incomes, 304. counterfeiting documentary stamps, 309. omission to cancel documentary stamp, 313. affix documentary stamp, 813. not affixing stamps to proprietary medicines, 330. fraudulent removal or use of proprietary stamps, 839. selling unstamped articles named in Schedule C, 330. selling unstamped imported articles named in Schedule C, 333. fraudulently claiming drawback on taxed articles, 833. using, selling, or making boxes, &c., fraudulently made, 375. PERFUMERY, stamp duty on, 857. POWER OP ATTORNEY, stamp duty on, 352. made here, but to be executed abroad, 353. when signed by several, 852. to receive and collect rent, 353. to sell and convey real estate, 353. contained in a mortgage, 324, 351. for other purposes, 353. accompanying bond or note, 324, 351. to collect bounty, &c., 324, 353. to represent creditor in bankruptcy, 353. PROBATE OP "WILL, stamp duty on, 353. how estimated, 353. when exempt, 353. letters de honis non, 354. PROMISSORY NOTE, stamp duty on, 339. new notes substituted for others, 340. renewals, 340. under seal, 340. given in part consideration of realty, 339. when secured by mortgage, 339. PROPRIETARY ARTICLES, medicines, &c., stamp duty on, 358. manufacturers of, may furnish dies, 311. commission allowed on sales to, 325. exportation of, 380. tax on imported, 833. INDEX. 401 PROPRIETARY A'RT1CL'E&— Continued. •what subject to tax, 333, 356. exempt, 333 PROTEST, stamp duty on, 354. on waiver of, 336, 387. REAL ESTATE, sale of, for taxes, 66. Commissioner to have charge of, 69. REASSESSMENT may be made within 15 months, 42. RECORD of unstamped instruments void, 308. RECTIFIERS, definition of, 314. special tax on, 314. to give notice, 135. to keep books, 194. sign of, 157. to make returns, 314. RETURNS, who shall make, 37. when to be made, 28, 64. when officer may make, 39. proceedings in case of failure to make, 39. to be in legal tender currency, 35. penalty for fraudulent, 35. property of non-residents, 37. by persons owning property out of district, 37. classification of, 37. revision of, by assessors, 40. by brewers, 115. monthly, of barrels manufactured by distiller, 314. when to be made by distillers, 158. of spirits produced, not less than 80 per cent., 161. by ganger, 306. monthly, by rectifier, 314. by storekeeper, 301. of manufacturers of tobacco, 227. dealers in tobacco, 337. manufacturers of cigars, 348. dealers in cigars, 349. manufacturers of sparkling wines, 197. by collector of tax-paid stamps, 183. for income, 397. by guardian, 397. by corporations of dividends, &c., 300. SALES under distraint, 58, 63. when property not divisible, 65. of real estate, 66. forfeited spirits, 213. forfeited tobacco, 245. STAMPS, fermented liquors, sale of, 117. affixing and cancellation of, 119. fraudulent removal or defacing of, 123. distilled spirits to be in book form, 181. how made, 181. sale of, 182. affixing and cancellation of, 175, 17b. fraudulently affixing, 184. 26 402 INDEX. STAMFS—GonHnued effacing of, 191. tobacco, &c., Commissioner to prepare, 228. sale of, 238. afilxlng and cancellation of, 229. absence, evidence of non-pajment of tax, 235. penalty for removal without, 235. for tobacco for export, 241, Commissioner may change device of, 259. cigare, Commissioner to prepare, 250. sale of, 350. absence, evidence of non-payment of tax, 253. penalty for removal without, 253. proprietary, what used, 811, 838. penalty for removing, 339. penalty for sale without, 330. proprietors may furnish dies for, 311. commissions on sale of, 335. what articles are subject to, 356. sale of, 334, 833. documentary, who to affix, 306 construction of, 307. record of unstamped, 308. use of more than one, 308. official documents, 309. tax deed, 309. bond of county officer, 809. penalty for forging or counterfeiting, 809. mode of cancellation, 311, 313. penalty for omission, 313. collector may stamp, 313. where no collection district, 315. proof of intent, 315. forged instniment unstamped, 317. . declaration on instruments, 317. plea of omission, 318. demurrer for omission, 318. bona iide holder, 319. sue on original consideration, 819. who may apply to collector, 332. when deputy may stamp, 823. collector's act judicial, 322. unstamped, validated, 333. foreign bill of exchange, 334. exemptions, 334, 355. Sale of, 324. collector may determine amount, 326. unstamped, no evidence, 327. may be evidence in State courts, 327. what liable to, 835. duplicates, 835, 337. SPECIAL TAXES, on distiUers, 214. rectifiers, 314. retail dealers in liquor, 315. wholesale dealers in liquor, 215. distillers of brandy from apples, &c., 215. dealers in tobacco, 319. INDEX. 403 SPECIAL TAXES— Oontinued. manufacturers of tobacco, 219. manufacturers of cigars, 220. brewers, 268. on manufacturers of stills, 216. non-payment does not invalidate contract, 264. SIGNS of distiller, rectifier, wholesale dealer, &c., 157. tobacco and snuff manufacturers, 226. cigar manufacturers, 247. STILLS, manufacturers of, 216. special tax on, 216. registration of, 184. manufacture of, 153. for recoTcry of spirits used pharmaceuticallv, 214. STORE-KEEPEES, appointment of, 301. duties of, 201, 202. payment of salary and expenses of, 305. to have charge of distillery, 164. SNUFF, tax on, 331. packages of, 233. penalty for fraudulent removal of, 334. tax on imported, 243. inventory of stock on hand, 344. when tax thereon refimded, 254. flour, how taxed, 221. SUPERVISOES, appointment of, 198. duties of, 199. accounts of, 199. when suspend collector or assessor, 306. SURVEYORS, accounts of, 199. SUITS, collector prosecute, for tax, 83. Commissioner regulates conduct of, 83. regulations for, 84. in equity to enforce lien, 262. no injunction against assessment or collection of tax, 91. assumpsit to recover tax, 63. against collector to recover tax collected illegally, 61, 91, 370. when brought in United States circuit court, 872. State court, 373. against assessor for illegal assessment, 378. TAX on fermented liquors, 1 13. distilled spirits, 124, 161, 153. brandy made from apples, &c., 315. sparkling wine and champagne, 197. native wines, 368, tobacco, &c., 321. imported tobacco, 243. cigars, 246. imported cigars, 253. special, 263. on gas, 374. brokers' sales, 377. banks and bankers, 379. incomes, 383. instruments, 306. proprietary articles, 838. 404 INDEX. TOBACCO, tax on, 331. special tax on manufacturer, of, 319. persons growing, not to pay tax on sales, 330. packages of, 333. for exporting, 323. manufacturer of, to mako statement, 324. record of manufactory of, 226. inventory of, 337. stamp on, 338. labels on, 233. forfeited for non-payment of tax, 334. exportation of, 236. transportation of, to bonded warehouse, 340. manufacture of, on commission, 343. sale of, at retail, 345. tax on imported, 243. effacing stamps on, 236. VINEGAR, how manufactured, 133, 134. WARRANTS, issuing of search, 103. ' WAREHOUSE distiUery, 153. construction of, 153. when discontinued, 210. proprietors of to pay salary of storekeeper, 305. entry of spirits in, 167. withdrawal from, 173. payment of tax before withdrawal, 174. for export of tobacco, 236. storage of tobacco to be exported, 236. proprietary medicines, 330. WIKES, sparkling and champagne, tax on, 197. of native growth, 268. WAREHOUSE RECEIPTS, stamp duty on, 847. WEIGHER'S RETURNS, stamp duty on, 334, 355.