Page images

Manufacturers of cigars whose annual sales do not exceed Manufacturers

of cigars. one hundred thousand cigars shall each pay six dollars.

Manufacturers of cigars whose annual sales exceed one hundred thousand and do not exceed two hundred thousand cigars shall each pay twelve dollars.

Manufacturers of cigars whose annual sales exceed two hundred thousand cigars sball each pay twenty-four dollars.

And every person who carries on any business or occu- Penalty. pation for which special taxes are imposed by this Act, without having paid the special tax herein provided, shall, besides being liable to the payment of such special tax, be deemed guilty of a misdemeanor, and upon conviction thereof shall pay a fine of not more than five hundred dollars, or be imprisoned not more than six months, or both, at the discretion of the court.

Definition of dealers in leaf tobacco, p. 128; of manufacturers of tobacco, p. 128; of manufacturers of cigars, p. 129.

A manufacturer of tobacco or cigars can not sell at retail at place of manufacture. (16 Op. Atty. Gen., 89; 24 Int. Rev. Rec., 227; Crisp v. Proud, 24 ibid., 340; Ludloff r. United States, 108 U. S., 176; 29 Int. Rev. Rec., 125.)

Special-tax stamps for sales of tobacco by persons traveling
from place to place. (29 lut. Rev. Rec., 305.)

Special tax, dealers in leaf tobacco. (Vol. 2, Treas. Dec.
(1898), Decisions Nos. 19619, 19801, 19822, 19876, 19877 and 19962.)

Special tax liability of a person buying leaf tobacco exclusively
for export by himself. (Vol. 3, Treas. Dec. (1900), Int. Rev.,
No. 28).

Manufacturers selling their own products at place of manufacture not required to pay special tax as tobacco dealers. (Vol. 2, Treas. Dec. (1898), No. 19765.)

Quasi manufacturers of tobacco and dealers in stems, refuse, scraps, eto., of tobacco are required to register and pay the minimum tax of $6 imposed on manufacturers of tobacco. (Vol. 2, Treas. Dec. (1898), No. 19814.)

Dealers in leaf tobacco not permitted to manufacture fertilizers, insecticide, or sheep dip from leaf tobacco or tobacco material, for the purpose of selling their products to the general trade. (Vol. 1, Treas. Dec. (1899), No. 20584.)

Sale of leaf tobacco in quantities less than a hogshead, case, or bale. (Int. Rev. Circular No.523, Feb. 10, 1899; Vol. 1, Treas.

Dec., No. 20750.) SEC. 36. Act of June 15, 1898 (30 Stat., 448). That every per- Manufacturers son, firm, or corporation, before engaging in the business of mide Packers of making, packing, or repacking mixed flour, shall pay a special tax at the rate of twelve dollars per annum, the same to be paid and posted in accordance with the provi. sions of sections thirty-two hundred and forty-two and thirty-two hundred and thirty-nine of the Revised Statutes, and subject to the fines and penalties therein imposed Penalty. for any violation thereof.




3247. Distiller, definition of.

3274. Custody and management of ware3248. Distilled spirits, detinition of.

houses. 3249. Standard of proof spirits; instru- 3275. Distiller to keep distillery accessiments, etc.

ble; penalty. 3250, Gallon, definition of.

3276 (amended). Power of revenue offi3251 (amended). Tax on distilled spirits.

cers to enter distilleries. Ol). [3251a.] Tax on spirits.

structing officer; penalty. [32516.) Manufacturer of sorghum sugar 3277. Distillers and rectifiers to furnish authorized to remove spirits in

facilities for examination; penbond, free of tax, for use in manu

alty. facture of sugar from sorghum. 3278. Officers can break up ground or Act March 3, 1891.

walls in order to examine. 3252. Adding substances to create ficti- 3279. Signs to be put up by distillers and tious proof; penalty.

rectifiers; penalty for neglect 3253. Tax on spirits removed without de

and for using false signs, etc. posit in warehouse; assessment.

3280. Distillers not to carry on busine-g 3254. Products of distillation containing

until the law is complied with, spirits taxable.

nor within 600 feet of a rectify. 3255 (amended). Brandy made from, ap

ing establishment. ples, peaches, or grapes, etc., ex

[3281.] Superseded by section 16, act of emptions.

February 8, 1875. Carrying on [3255a.] Distilleries of 30 gallons ca

distilling without giving bonil, pacity or less; exemptions.

etc.; penalty. 3256. Evading tax; penalty.

[3281a.) Arrest of persons operating illicit 3257. Distiller defrauding or attempting

distillery. to defraud; penalties.

3282 (amended). Vinegar establishments; 3258. Registry of stills; penalties.

penalty. 3259. Notice of intention to carry on business of distiller or rectifier;

3283. No process for distilling between 11 penalty.

p. m. of Saturday and 1 a. m. of 3260 (amended). Distiller's bonds; pen

Monday; penalty. alty.

| 3284. Using material or removing spirits

in absence of storekeeper; pen[3260a.] Refusal to approve bond in certain cases.

alty. 3261. Bond not to be approved until law | 3285 (amended). Emptying fermenting

tubs. is complied with; penalty. 3262 (amended). Distiller must be owner

3286 (amended). Drawing off water, in fee-simple, or have written

cleansing worm-tub, etc. ; penconsent of owner, etc.

alty. 3263. Plan of distillery.

3287 (amended by act of Feb. 21, 1899). 3264 (amended). Surveys.

Removal of spirits to warehouse. 3265. Notice by manufacturer of a still. | 3288. Tax-paid spirits not to remain on Setting up a still without per

distillery premises. mit; penalty.

3289. Forfeiture of unstamped packages. 3266. Distilling on certain premises pro.

3290. Gauger employing distiller, etc., to hibited; penalty.

use brands or perform his duties; 3267. Receiving-cisterns.

penalty. 3268. Breaking locks, gaining access to

3291. Ga

er's returns. cisterns, etc.; penalty.

3292. Fraudulent gauging, etc.; penalty. 3269. l'urnaces, tubs, doublers, worm- | 3293 (amended). Distiller's entry of de tanks; penalty.

posit in warehouse; warehousing 3270. Apparatus and fastenings.

bonds. 3271. Distillery warehouses.

[3293a.] Warehousing and transportation [3271a.) Use of warehouse by successors

bonds. in certain cases.

3294 (amended). Withdrawal from ware3272. When a warehouse becomes unsafe.

house. 3273. Storekeepers have charge under [3291a.] Allowance for leakage; spirits direction of collector,

may be regauged, etc.

[ocr errors]


1 Sec. [3294b. ] Act March 3, 1899. Allowance 3318 ( amended). Rectifiers' and wbolesale for loss.

dealers' books and transcripts; 51-59. Act of Aug. 28, 1894. General

penalties. bonded warehouses for distilled [3318a.] Distiller required to keep book.

spirits, other than fruit brandy: 3319. Purchase of quantities greater 3295 (amended). Gauging, stamping, and

than 20 gallons from any person branding spirits removed from

other than, etc.; penalty. warebouse.

3320. Ganging and stamping rectified 3296. Removal, concealment, etc., of spir

spirits. its contrary to law; penalty. 3322. Filling blanks and aftixing and var3297 and (3297a). Alcohol withdrawn for

nisbing stamps. scientific purposes; penalty. 3323 (amended). Spirits drawn into new 3298. Power of officers to detaiu packages

packages to be ganged and forty-eight hours.

branded; forfeiture. 3299. Forfeiture of spirits unlawfully re- 3324. Stamps and brands to be etiaced moved from distillery.

from empty casks; penalties. 3300. Storekeeper unlawfully removing i 3325. Buying or selling spirit casks havspirits, or allowing same to be

ing inspection marks; penalty. removedl, etc.; penalty.

3326. Changing stamps, shifting spirits, 3301 (amended). Storekeepers' ware

etc.; penalty house books and returns.

3327. Removal within certain liours from 3302. Storekeepers to have charge of dis

distillery or rectifier's premises; tillery and keep account of ina

penalty. terials, etc.

3328. Taxonimitation wines; counterfeit3303. Distillers' books.

ing or reusing stamps; penalties. 3304. Books to be open to inspection and 3329 (amended). Draw back on spirits. preserved two years.

3330 (amended). Exportation of spirits 3305. l`alse entries, or omitting to keep

withdrawn from bonded ware. or produce books; penalty.

houses; relanding; penalties. 3306. l'sing false weights or measures, or [3330a.] Transportation bond may be unregistered materials; penalty.

taken; change of package. 3307 and 3308. Distillers' returus.

[3330b.] Act of December 20, 1879; allow. 3309 (amended). Monthly examination of

ance for loss during transportadistiller's returns, assessment,

tion. etc., capacity tax.

| 3331. Release of distillery before jndy[3309a.] Relief from assessments for deti- ! ment, in what cases.

ciencies, etc., in certain cases. 3332 (amended). Stills, etc., to be de[33096.] Assessments to be at rate of tas

stroyed in certain cases. imposed by act August 28, 1894. 1 3333. Burden of proof. 3310 (amended). Commencement and sus 3334 (amended). Spirits sold under judipension of work; penalties.

cial process subject to tax. Pro3311. Reduction of capacity; penalty for

vision where spirits will not sell tampering with locks, etc.

for price equal to tax. 3312 and 3313. Stamps.

Acts of March 3, 1877, and October 18, 3314 (amended). Accountability for stamp

1888. Special bonded warehouses books; export stamps.

for fruit brandy. 3315 (amended). Restamping spirits, fer Sections 11, 12, and 13, act March 1, 1879; mented liquors, tobacco, cigars,

penalties. Imported liquor etc., when stamps are lost or des

stamps, etc. stroyed.

Act October 1, 1890, as amended by act of 3316. Officer issuing or permitting use of

Angust 28, 1894. Grape brandy stamps, contrary to law; penalty.

used for the fortification of wine, [3316a.] Imitation stamps; penalty.

wine spirits and pure sweet wino 3317 (amended). Rectifiers' returns; rec

defined. tifiers intending to defraud; pen- Withdrawal of wine spirits from alty.

special bonded warehouses. (3317a] (amended). Rectifier's notice of i Artof March 3, 1897. Bottling of distilled intention to rectify.

spirits in bond.

nition of

SEC. 3247. Every person who produces distilled spirits, Distiller, or who brews or makes mash, wort, or wash, fit for distillation or for the production of spirits, or who, by any process of evaporization, separates alcoholic spirit from any fermented substance, or who, making or keeping mash, wort, or wash, has also in his possession or use a still, shall be regarded as a distiller.

See section 3282 as to vinegar makers, p. 170.
To make one in possession of a still a distiller because he


keeps masli, wort, or wash, the mash, wort, or wash must be such as will produce spirits on distillation. (United States e. House and Lot No. 3 Abattoir Place; 25 Int. Rev. Rec., 319.)

Special tax on distillers repealed, act of June 6, 1872.

A corporation may carry on the business of distilling. Also, meaning of the word “person” in this chapter. (15 Op. Atty.

Gen., 230; 23 Int. Rev. Rec., 141.) Distilled spir- SEC. 3248. Distilled spirits, spirits, alcohol, and alcoholic its, definition of.

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, which is commonly produced by the fermentation of grain, starch, molasses, or sugar, including all dilutions and mixtures of this substance; and the tax shall attach to this substance as soon as it is in existence as such, whether it be subsequently separated as pure or impure spirit, or be immediately, or at any subsequent time, transferred into any other substance, either in the process of original production or by any subsequent process,

Under the internal-revenue laws the tax on spirits attaches as soon as they come into existence, and must be paid by the manufacturer, even in case of their destruction, unless the circumstances on which he relies for exemption come within the particular description in some one of the remedial statutes.

(Greenbrier Distillery Company v. Johnson, 88 Fed. Rep., 638.) Standard of SEC. 3249. Proof spirit shall be held to be that alcoholic provention of liquor which contains one-half its volume of alcohol of a

specific gravity of seven thousand nine hundred and thirtynine ten thousandths (.7939) at sixty degrees Fahrenheit. And for the prevention and detection of frauds by distillers of spirits, the Commissioner of Internal Revenue may prescribe for use such hydrometers, saccharometers, weighing and gauging instruments, or other means for ascertaining the quantity, gravity, and producing capacity of any mash, wort, or beer used, or to be used, in the production of distilled spirits, and the strength and quantity of spirits subject to tax, as he may deem necessary; and he may prescribe rules and regulations to secure a uniform and correct system of inspection, weighing, marking, and gauging of spirits.

Meters. (Tice v. United States, 99 C. S., 286; Sausser r. United States, 9 Ct. Clms., 338; 11 ibid., 538; Finch r. United States, 12 Ct. Clms., 364; 102 U. S. (12 Otto), 269; 26 Int. Rev. Rec., 410.)

By the act of June 6, 1872 (17 Stat., 239), all the provisions of the act of July 20, 1868, touching meters were repealed.

By the terms of Special No. 180, issued June 16, 1877 (Gaugers' Manual, 1900), gauyers are directed to decline to gauge, brand, mark, or stamp any distiller's or rectifier's package when the wantage exceeds one-half wine gallon in a package of less than 63 gallons' capacity when the temperature of the spirits is 50 Fahr, or above; or when the wantage exceeds 1 gallon on the same quantity with temperature below 50° Fahr.; or, when the capacity ranges from 63 to 126 gallons at a temperature of 50 Fahr. or above, the wantage is greater than 1 gallon; or with same quantity at a temperature less than 500 Fahr. and wantage greater than 14 gallons; or capacity 126 gallons and upward with a temperature of 50- Fahr. or more the wantage is greater than 2 gallons; or same capacity, temperature less than 50Fahr., wantage greater than 3 gallous. The exception is when a final package is insufficiently filled because the distillery cis

terns or rectifying vats are exhausted, and then a special report
on Form 59 or 594 is required. (Gangers' Manual, 1900; 23 Int.
Rev. Rec., 205.)

Under the modification of Special No. 180, gaugers are directed
not to refuse to gauge brandy at fruit distilleries of not more
than 100 proof gallons' daily capacity by reason of large actual
wantage. (Gaugers' Manual, 1900; 23 Int. Rev. Rec., 317.)

On the 1st of May, 1892, the method of gauging of spirits by rod, theretofore used, was changed to a weighing system, by which the number of wine gallons contents is determined by the weight of the package. Weighing beams are furnished for the use of distilleries and rectifying houses, and their use made obligatory, except at fruit distilleries of a production of less than 10,000 proof gallons during the season, and at rectifying houses rectifying less than 5,000 proof gallons of spirits annually. (Gaugers' Weighing Manual (1895) and Circular No. 529 (April 20, 1899), Vol. I, Treas. Dec. No. 21047.)

Weighing spirits : Commissioner's Annual Report (1892). (38 Int. Rev. Roc., 13.).

Circular No. 175 relates to the price of the improved rod.
(23 Int. Rev. Rec., 405.). Circular 338, Nov. 19, 1889, relates to the
reduction in price of the standard gauging rod. (35 Int. Rev.
Roc., 365.) Gaugers' Manual, 1900.

Alexander's improved wantage rod. (Dep. Cir. No. 160. Int.
Rev. No. 484, Oct. 2, 1897; 43 Int. Rev. Rec,, 386; increased price,
Cir. No. 553, Vol. 3, Treas. Dec. (1900) Int. Rev. No. 34.)

Circular No. 218, August 1, 1879, authorizes tbe ootage of pack-
ages of less than 63 gallons' capacity to be 1 gallon where Corey's
apparatus for aging whisky and other spirits in distillery ware-
houses is used, and modifies Circular No. 180 accordingly. (25
Int. Rev. Rec., 245.)

See Gaugers' Manual, 1900, for rule applicable to all apparatus for aging whisky, which has been approved by the Commissioner.

One of the regulations established under the authority of section 3249 was that, “Whenever any rectifier proposes to empty any spirits for the purpose of rectifying, purifying, refining, redistilling, or compounding the sanie, he will file with the collector a notice or statement giving the number of casks or packages, the serial number of each, the number of wine and proof gallons in each, the kind of stamps and serial numbers of each, the particular name of such spirits as known to the trade, the proof, by whom produced, the district where produced, by whon inspected, and the date of inspection.

It was claimed that the regulation in question was unauthor. ized by the statute. The opinion of the United States Supreme Court in Thacher, claimant, etc., v. United States, says: “But we see no just ground for such a proposition. The internal. revenue law is very specific in the details of that which is necessary to prevent fraud, especially in regard to the tax on whisky and tobacco, and it was still found necessary to authorize the bureau which had charge of the collection of that tax to prescribe regulations for conducting the business of making and selling whisky, and to adopt forms of reports in the information it mnst receive from the officers engaged in collecting the tax and the parties who should pay the tax. The rule in question seems to be a reasonable one and within the purview of the power conferred.” (Thomas Thacher, claimant of 102 packages of distilled spirits, plaintiff in error, v. The United States, 103 U. S. 679; 27 Înt. Rev. Rec., 144.) The substance of this regulation is now included in the statutes. [Sec. 3317a, p, 197.]

A new edition of the Internal-Revenue Gaugers' Manual, embracing regulations and instructions and tables prescribed by the Commissioner of Internal Revenue by virtue of section 3249,

R. S., has been issued (1900). Sec. 3250. In all sales of spirits a gallon shall be held to. Gallon as nsed

in sales, defini. be a gallon of proof spirit, according to the standard pre- tion of. scribed in the preceding section, set forth and declared for

10228- -10

« PreviousContinue »