CORNELL 
 
 LAW 
 LIBRARY 
 
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Cornell University Library 
 KF6300.A57U581 
 
 Digest of decisions and regulations made 
 
 3 1924 020 019 331 
 
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. 
 
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DIGEST 
 
 OF 
 
 Decisions and regulations 
 
 N!AI)E feY 
 
 THE COKDVIISSIONER OF INTERNAL REVENUE 
 
 UNDER 
 
 VARIOUS ACTS OF CONGRESS RELATING 
 TO INTERNAL REVENUE, 
 
 AND 
 
 ABSTRACTS OF JUDICIAL DECISIONS AND OPINIONS OF ATTORNEYS- 
 GENERAL AS TO INTERNAL-REVENUE CASES, 
 
 From Jane 13, 1898, to December 31, 1904. 
 
 WASHINGTON! 
 
 GOVERNMENT PRINTING OFFICE. 
 
 1905, 
 
DIGEST 
 
 OF 
 
 DECISIONS AND REGULATIONS 
 
 MADE BY 
 
 THE COMMISSIONER OF INTERNAL REVENUE 
 
 UNDER 
 
 VARIOUS ACTS OF CONGRESS RELATING 
 TO INTERNAL REVENUE^ 
 
 AND 
 
 ABSTRACTS OF JUDICIAL DECISIONS AND OPINIONS OF ATTORNEYS- 
 GENERAL AS TO INTERNAL-REVENUE CASES, 
 
 From Jane 13, 1898, to December 31, 1904. 
 
 C123323 
 
 WASHINGTON: 
 
 GOVERNMENT PRINTING OFFICE. 
 
 1905. 
 
INTRODUCTORY. 
 
 Treasury Department, 
 Office of Commissioner of Internal Revenue, 
 
 Washington, July 1, 1905. 
 The following Digest of Decisions and Regulations made by the Commissioner of. 
 Internal Revenue under the various acts of Congress relating to internal revenue, 
 including abstracts of judicial decisions and opinions of the Attorney-General as to 
 internal-revenue cases, covering the period from June 13, 1898, to December 31, 1904, 
 is published for the information of officers of the internal revenue and all others 
 concerned. 
 
 John W. Yerkes, 
 
 Commissioner. 
 
 (3) 
 
DIGEST 
 
 INTERNAL REVENUE DECISIONS 
 
 RENDERED DURING 1898 TO 1904, INCLUS1VE.« 
 
 Abatement and refunding-. 
 
 Claims for refunding documentary stamps should be made on Form 46, accom- 
 panied by stamps, and by the instruments or a copy thereof. In cases of claims 
 for amounts paid for stamps used on deeds of property sold subject to mortgage, 
 it must be shown in every case whether the mortgage was assumed. Refund 
 will be made in the name of the party who bore the burden„of taxation. 
 (T. D. 212; September 14, 1900.) 
 
 Claims for abatement of taxes must be filed with collectors of internal revenue. 
 (T. D. 229; October 2, 1900.) 
 
 Claims for abatement must be presented within two years after payment. Right 
 of action accrues on the payment of the tax and not upon the date of subse- 
 quent decisions or rulings. Claims filed with collectors two years or more after 
 payment should be forwarded to the Commissioner of Internal Revenue for his 
 action. (T. D. 237; October 25, 1900.) 
 
 In claims for refunding documentary stamps used in error or in excess, the 
 original instruments to which stamps are affixed, or certified copies thereof, 
 must be filed. Collectors' or deputy collectors' certificates as to copy are suffi- 
 cient. (T. D. 248; November 20, 1900.) 
 
 The date of receiving refunding claims by collectors and deputy collectors must 
 be entered on record book No. 22, and collectors should certify on claims the 
 date of receipt. (T. D. 238; October 30, 1900.) 
 
 The Comptroller of the Treasury, in opinion rendered March 30, 1900, holds, and 
 the Commissioner concurs, that, where penalties were collected by authority of 
 law, the Commissioner has no power to refund, inasmuch as his authority in 
 claims for refunding is confined by the statute to penalties collected "without 
 authority of law." (T. D. 153; June 11, 1900.) 
 Abatement of taxes. 
 
 Referring to schedule of taxes abated as per order 25865, and to the large num- 
 ber of balances rejected, the collector is advised that these balances should be 
 promply collected by distraint if not paid on demand, the Commissioner add- 
 ing that "when a warrant of distraint is returned with the report of no prop- 
 erty found to be liable to distraint, the deputy reporting must accompany the 
 return warrant with his affidavit on Form 53. If the parties refuse to pay, 
 
 aThe initials T. D., appearing at the end of each abstract and preceding the date thereof, stand 
 for "Treasury Decision." 
 
 (5) 
 
6' 
 
 Abatement of taxes — Continued. 
 
 and you are satisfied from the affidavit of the deputy collector on Form 53 
 that the tax can not be collected by distraint, you should place the distillers' 
 bonds in the hands of the United States attorney for suit unless you are satis- 
 fied that the sureties are insolvent, in which case you will please report the 
 facts to this office for further advice." (T. D. 785; April 29, 1904.) 
 
 When an assessment of taxes is made against an individual it is the collector's 
 duty to collect the same without questioning the legality of the assessment. 
 If, however, a reasonable claim for abatement be presented, the collection may 
 be suspended pending the consideration of it, unless it appear that suspension 
 will jeopardize the payment of the tax. (T. D. 621; January 20, 1903.) 
 
 Where two assessments have been made covering the same liability, the first 
 should be credited with the payment. If by error the second assessment has 
 been credited with the payment, the credit should be erased and entered upon 
 the proper list. The second assessment is erroneous and may be abated. 
 (T. D. 508; April 22, 1902.) 
 Accident insurance tax. 
 
 Monthly reports can not be made in installment insurance. No rebate or refund 
 for stamps or for policies surrendered for changes in terms or canceled upon 
 the return of all or any part of the premium. (T. D. 20022; September 7, 
 1898.) 
 
 Policies of accident insurance, 'or renewal receipts, are not subject to stamp tax 
 until issued. A policy is issued when it leaves the company or the company's 
 representative and is operative in the hands of some one not representing the 
 company. Stamp tax is based on the amount of premium, regardless of its 
 payment in installments. The policy, not the application, is subject to tax. 
 (T. D. 20027; September 8, 1898.) 
 Accounts — Cigar manufacturers. 
 
 Manufacturers making two or more classes of cigars and cigarettes, subject to tax 
 at different rates, are privileged to keep separate records for each class, Form 
 73, and render separate monthly returns, Form 72. The several accounts, relat- 
 ing to each class of goods made, must be reported by the collector separately 
 and on separate sheets, Form 144. All unstamped cigarettes inventoried Jan- 
 uary 1 of each year shall be included in the account relating to cigarettes tax 
 paid at SI. 08 per thousand. If the tobacco material used in making both large 
 and small cigars or cigarettes is taken from a common stock the account relat- 
 ing to small cigars or cigarettes shall be credited with 5 pounds of unstemmed 
 or 3 pounds? of stemmed leaf, scraps, cuttings, or clippings used in manufac- 
 turing 1,000 small cigars or cigarettes reported manufactured. The account 
 relating to large cigars will then be chargeable with the total quantity of mate- 
 rial apparently used, less the quantity reported used in making small cigars or 
 cigarettes. (T. D. 517; May 12, 1902.) 
 
 The several accounts of manufacturers of cigars who make cigarettes of more than 
 one class must be stated separately on Form 144. The accounts as stated must 
 show the number of cigarettes stamped and removed from the factory tax paid 
 at the several rates without reference to tax or the wholesale value or price of 
 unstamped cigarettes. The deficiencies, if any, will appear in the accounts 
 relating to cigarettes tax paid at the highest rate, 81.08 per thousand. (T. D. 
 463; January 24, 1902.) 
 
 Accounting'. 
 
 Collectors should render accounts on Form 210 for all sales of personal property 
 seized, whether under distraint or for violation of law. If sale is made under 
 any other than section 3460, the number of the section should be substituted 
 
Accounting — Continued. 
 
 for 3460 where it appears in Form 210. All vouchers should be taken in the 
 name of the disbursing officer (the collector) claiming credit for the disburse- 
 ments and not in the name of a deputy collector, although, if desirable, the 
 receipt may state that the amount was received of the collector, per deputy 
 collector, giving his name. (See also Method of advertising, same decision.) 
 (T. D. 273; February 5, 1901.) 
 
 Each collector is urged to give the records of delinquent special-tax payers such 
 inspection, from time to time, as will enable him to discover when any one of 
 them has so increased his business and to report each of such persons on the 
 list for the month in which the increase occurs, stating on the list the full period of 
 liability from commencement of business and giving the number of the special- 
 tax stamp, if any has been issued, and writing in column 7 of the assessment 
 list the words "Increased tax." This should be done in order that a prompt 
 settlement of the increased liability may be secured by assessment, or', if a 
 stamp at a higher rate has been issued, that special correspondence as to the 
 50 per cent penalty apparently due may be obviated. (T. D. 272; January 31, 
 1901.) 
 
 The accounts of manufacturers who make cigarettes of more than one class, as 
 stated on Form 144, should show the number of each class removed from the 
 factory properly stamped. (T. D. 463; January 24, 1902.) 
 
 The accounts of manufacturers of small cigars should be stated separately, and 
 on separate sheets, apart from the accounts relating to the manufacture of 
 large cigars and cigarettes, and each account should show separately the num- 
 ber of pounds of tobacco material used in the manufacture of large or small 
 cigars or large and small cigarettes, as the case may be, and the number of 
 such cigars or cigarettes manufactured. (T. D. 517; May 12, 1902.) 
 
 Accounts. 
 
 Beginning with the month of April, 1900, the collectors are required to pay the 
 fees and expenses of all storekeepers, and storekeepers and gaugers, as well as 
 their compensation, and requisitions should be made for funds accordingly, on 
 Form 42, in the districts to which these officers are assigned. (T. D. 65; 
 March 8, 1900.) 
 
 Collectors are advised that on and after July 1, 1900, no collector's office will be 
 graded No. 1 whose system is so defective as to permit the officer or employee 
 who receives public money and issues stamps therefor to receive also the 
 orders, requisitions, or papers direct from the taxpayer, on which stamps are 
 issued or tax collected, thus enabling such officer or employee to withhold 
 from deposit public funds and retain in his possession the order, requisition, or 
 paper upon which the money is paid. (Int. Rev. Circular, 136; May 28, 
 1900. ) 
 
 Hereafter all accounts of gaugers, storekeepers, or of storekeeper and gauger, 
 where expenses are incurred, must be authenticated by a travel order which 
 should be dated and signed by the collector, and delivered to the gauger, 
 storekeeper, or storekeeper and gauger, the travel order being attached to the 
 account. (T. D. 18; January 22, 1900.) 
 
 Additional tobacco tax. 
 
 In the case of James D. Patton, trading as J. D. Patton & Co., v. Maggie A. 
 Brady, executrix of J. D. Brady, collector, brought originally in the United 
 States circuit court, eastern district of Virginia, involving the constitutionality 
 of additional tax of 3 cents per pound, under section 3, act of June 13, 1898, 
 for tobacco in the hands of dealers, the Supreme Court of the United States 
 held, in opinion delivered by Justice Brewer, that while the tobacco had 
 
Additional tobacco tax — Continued. 
 
 passed from the manufacturer it had not reached the consumer, being held 
 for sale by the plaintiff, the conclusion being that "it is within the power of 
 Congress to increase an excise as well as a property tax, and that such an in- 
 crease may be made at least while the property is held for sale and before it 
 has passed into the hands of the consumer." (T. D. 492; March 26, 1902.) 
 
 Administration of oath.. 
 
 Officers who are authorized to administer oaths must perform that duty in a 
 dignified and proper manner and not in a perfunctory way. The practice on 
 the part of officers, wherever indulged in, of indicating, by signing their names 
 to jurats, that they have administered an oath where that duty has not been 
 performed at all, or if performed, the formality and solemnity of the act so far 
 disregarded as to reflect upon the officer and the Service, must be discontinued 
 at once. (T. 1). 456; January 2, 1902.) 
 
 Affidavits, 
 losses by fire, theft, and other casualty: 
 It is necessary in all cases of alleged losses by fire, theft, or other casualty that 
 the affidavits be indorsed by the collector, or by his deputy, with his recom- 
 mendation as to the allowance of the claim, and if an investigation was made 
 under direction of the collector, the facts as developed by such inquiry should 
 be shown, in order that this office may give the cases proper consideration. 
 (T. D. 710; October 17, 1903.) 
 
 Agreements of sale, etc. — Stamp tax. (See also Decisions 19972, 20093. ) 
 
 Tax on sales "at any exchange, or board of trade, or other similar place." Live 
 stock comes within the classification of "any products or merchandise." 
 "Similar place" defined in reference to the selling of live stock; sales of live 
 stock at such places as those defined subject to taxation. (T. D. 20031; Sep- 
 tember 13, 1898.) 
 Transactions of live-stock exchanges — Duty of exchanges, when sale is made, or 
 an agreement of sale, or an agreement to sell entered into, to give to buyer a 
 bill, memorandum, or other evidence of such sale, and to place thereon the 
 required stamp. (T. D. 19739; July 20, 1898.) 
 
 Alcohol — Special tax. 
 
 Druggists who deodorize and redistill alcohol for sale involve themselves in 
 special-tax liability as rectifiers. (T. D. 732; December 19, 1903.) 
 
 Alcoholic compound fruit juices. 
 
 Alcoholic compounds called fruit juices can not be lawfully manufactured for 
 sale, whether for flavoring purposes or for any other use, except under the 
 special-tax stamp of » rectifier; and the package sent out must be duly 
 stamped. Fortified sweet wines must not be used in compounding. (T. D. 
 807; July 11, 1904.) 
 
 Auctioneers selling' liquor — Special tax. 
 
 Auctioneers can not lawfully sell distilled spirits and wines and malt liquors 
 without holding the requisite special-tax stamp as liquor dealers under the 
 internal-revenue laws of the, United States, even when they do not sell these 
 liquors "save when consigned by executors of estates, trustees, or receivers 
 appointed by equity courts, or United States courts in bankruptcy, or by a 
 sheriff, constable, or bailiff, and the sales are ordered by court of jurisdiction 
 and the commissions allowed auctioneers do not justify the expense for special 
 tax." (T. D. 827; September 20, 1904.) 
 
9 
 
 Alexander's wantage rod. 
 Increase in price to users: 
 Collectors are notified that, owing to increased cost of labor and materials, the 
 contractor for furnishing Alexander's improved wantage rod has found it 
 necessary to increase the price to §1.75 each, which, until further notice, will 
 be the price of the rod to all persons in the Internal-Revenue Service. Appli- 
 cations for the rod by persons in the Service must be addressed to the Com- 
 missioner of Internal Revenue, and at the same time the price stated above, in 
 a money order or draft, must be forwarded to the Commercial and Farmers' 
 National Bank at Baltimore, Md., payable to the order of that bank. In no 
 instance must the remittance he sent to this office or be made payable to the Commis- 
 sioner. (T. D. 746; February 1, 1904.) 
 
 Ale or barley brew — Special tax. 
 
 A beverage containing but an infinitesimal quantity of alcohol, and (although in 
 color and flavor it has a general resemblance to malt liquor) not being, in fact, 
 such a fermented liquor as section 3339, Revised Statutes, describes, is not 
 taxed under the internal-revenue laws of the United States, nor is special tax 
 required to be paid for its sale. (T. D. 690; August 12, 1903.) 
 
 Allowance for proprietary stamps. 
 
 No allowance can be made for proprietary stamps which may be on goods in 
 customs bonded warehouse, or in the place of manufacture, July 1, 1902, unless 
 the stamps are removed from the packages and accompany the claim, or the 
 deputy collector of internal revenue certifies that he has seen each stamp and 
 has indorsed upon the face of each of them the words, ' ' Claim for refunding 
 filed." (T. D. 522; May 16, 1902.) 
 
 Annual bonds — Suits. 
 
 Decision in United States r. National Surety Company, an action instituted by 
 the United States on a distiller's bond, executed by Wilson Howard, principal, 
 and the National Surety Company, as surety: 
 
 The distiller's annual bond held liable for tax on spirits produced and removed 
 from the warehouse without payment of tax when the warehousing bond is 
 insolvent. The judgment of the lower court (112 Fed. Rep., 336) reversed. 
 The construction of a revenue act by the Treasury Department, though not 
 controlling, is entitled to respectful consideration. (T. D. 665; June 2, 1903.) 
 
 Army-post exchanges — Special tax. 
 
 Army-post exchanges are not required to pay special tax as dealers in oleomar- 
 garine. (T. D. 632; March 4, 1903.) 
 
 Arrests — Swearing 1 to complaints. 
 
 Deputy collectors must not swear to complaints for violation of the internal- 
 revenue laws until they have examined the witnesses as to the truth of the 
 charges and are satisfied that there are reasonable grounds for believing that 
 the charges are true. (T. D. 510; April 25, 1902. ) 
 
 Assessment of tax. 
 
 Proper procedure in cases of property assessed in the hands of a receiver 
 requires that the collector shall serve notice on the receiver of the assessment 
 against the persons and request payment, and also call upon the United 
 States district attorney to appear before the State court and move for an order 
 upon the receiver to pay the amount of this assessment before payment of any 
 other debt that is not a specific lien against the property, in view of the right 
 of the UnitedStates to priority of payment under section 3466, Revised Statutes. 
 (T. D.667; June 10, 1903.) 
 
, iu 
 
 Assessment. 
 
 Assessment of tax on fruit brandy: 
 
 In order that the taxes due and not paid on brandy may be promptly assessed, 
 in accordance with the regulations of April 15, 1901, as amended, and the col- 
 lection of the same enforced, collectors should instruct officers engaged in the 
 examination of fruit distilleries to keep a close and effective supervision of the 
 operations of such distilleries, and to report each month all brandy gauged 
 and not tax paid or removed for the fortification of wine or to a special bonded 
 warehouse in ample time for the assessment of the same in column 10J of the 
 next list. See Circular 575 (p. 2, par. 5) as to the visits of officers at distilleries 
 during active operations of the same. (T. D. 782; April 26, 1904.) 
 Assessment of fruit distillers' tax: 
 
 In making formal demand for payment of taxes on remainder interests, under 
 the act of June 13, 1898, as amended by the act of June 27, 1902, where a claim 
 for abatement is filed, collectors should notify executors, administrators, or 
 trustees, on whom such demand is made, that penalty and interest imposed 
 by section 3184, Revised Statutes, will be incurred by nonpayment within the 
 prescribed time, if the assessment made is sustained by the courts. Where 
 payment of such tax is made on demand, the collector will notify the execu- 
 tors, administrators, or trustees that claim for refund may be made under sec- 
 tion 3220, Revised Statutes, if presented within the time limited by section 
 3228, Revised Statutes. (T. D. 695; September 14, 1903.) 
 
 The assessment made by the Commissioner is prima facie evidence, and is suf- 
 ficient to support judgment for the Government in a suit on the distiller's 
 bond, unless the defendant is able to show that it is invalid. When a fruit 
 distiller has received pomace, in the absence of any explanation otherwise 
 accounting; for it, it is justifiable to infer that the material was used in the 
 production of spirits at the rate of 1 gallon to 14 gallons of pomace. (T. D. 
 78H; April 30, 1904.) 
 
 The circuit court of the United States for western district of North Carolina 
 May term, 1903, charges jury as to power of Commissioner to assess taxes. 
 The list is prima facie evidence that the tax is legal. When suit is instituted 
 against the collector to recover taxes the burden is upon the plaintiff to estab- 
 lish, by proof, that the assessment is erroneous, and he must show that the 
 tax is not due by a preponderance of evidence. (T. D. 662; May 22, 1903.) 
 
 Where an assessment of revenue taxes is made it is the collector's duty ordinarily 
 to proceed with the collection of the tax without questioning the legality of 
 the, same. (T. D. 621; January 20, 1903.) 
 Assignee— Special tax. 
 
 An assignee may continue business under his assignor's special-tax stamp with- 
 out involving himself in special-tax liability. (T. D. 611; December 27, 1902. ) 
 Associations — Stamp tax. 
 
 Deeds of building and loan associations, conveying real property to a nonshare- 
 holder, are not exempt from stamp tax under section 17, act of June 13, 1898. 
 (T. D. 285; February 15, 1901.) 
 
 Proxies or powers of attorney, used to vote at meetings of building and loan 
 associations, are liable to stamp tax. Former rulings inconsistent with this 
 are revoked. (T. D. 270; January 26, 1901.) 
 Authority of decisions of Commissioner. 
 
 The decisions of the Commissioner are authoritative, and can not be overruled by 
 any other executive officer. Appeal to the courts can only be made after taxes 
 have been paid and application for refunding rejected by the Commissioner. 
 (T. D. 20459; December 22, 1898.) 
 
11 
 
 Banks and bankers — Special tax. 
 
 A company, one branch of whose business is the banking business, but, whose 
 capital is employed without the separation and assignment of any particular 
 part of it to the business of banking, is required to pay special tax reckoned 
 upon the basis of its entire capital and surplus for the preceding fiscal year. 
 A bank, even though its officers make return that no capital or surplus is 
 employed in its business, is required to pay special tax under paragraph 1 of 
 section 2, act of June 13, 1898. (T. D. 21421; July 25, 1899.) 
 
 A new special tax is not required when a State bank is converted into a national 
 bank under the provisions of section 5154, Revised Statutes, without affecting 
 its identity, there being simply a change of name and a change of jurisdiction. 
 (T. D. 123; May 11, 1900.) 
 
 A person who sells his personal checks is not required to pay special tax therefor 
 as a banker. (T. D. 227; October 10, 1900. ) 
 
 An association which has a place of business where promissory notes are received 
 for either discount or sale must pay a special tax as a banker. (T. D. 20062; 
 September lb, 1898.) 
 
 Bankers, as well as all other special-tax payers, must be included in Record No. 
 10, kept by collectors for public inspection under section 3240, Revised Statutes, 
 but nothing is required to be stated in the record but the name of the special- 
 tax payer, his business, the place of business, and the time of payment of the 
 •special tax. (T. D.. 19969; August 27, 1898.) 
 
 Bankers who have not been in business during the preceding year must pay the 
 special tax at the rate of $50 for the year" beginning July ], 1898. (T. D. 
 20114; September 28, 1898.) 
 
 Banks engaged in business in the month of July, 1898, are required by para- 
 graph 2, act of June 13, 1898, to pay the special tax, imposed by said para- 
 graph, for the entire year, beginning July 1, in pursuance of the provisions of 
 section 3237, Revised Statutes, which applies to all special taxes under the 
 internal revenue law of the United States. (T. D. 19758; July 25, 1898.) 
 
 Borrowed money employed as capital must be taken into account in estimating 
 special tax. Money placed with bankers by customers, upon time certificates 
 of deposit, not regarded as capital. (T. D. 20154; October 5, 1898.) 
 
 Claims for refunding special tax by banks on undivided profits not used in the 
 business of banking may be made on Form 46, but, if banking associations 
 prepare a better form 'for the purpose, the same may be used to advantage. 
 (T. D. 20751; February 24, 1899.) 
 
 City merchants who receive on deposit money from country merchants who are 
 their customers, for the convenience of the latter, but not opening such accounts 
 with the public generally, are not regarded as subject to special tax as bankers 
 within the meaning of paragraph 1, section 2, of war-revenue act. (T. D. 
 20342; November 18, 1898.) 
 
 Every bank (except a savings bank coming within the express exempting pro- 
 vision of the statute) is required to pay special tax even though no capital is 
 employed in its business. A separate special tax must be paid for every 
 ' branch bank or separate place at which the business of banking is carried on. 
 
 (T. D. 21782; November 18, 1899.) 
 
 In estimating special tax upon- capital and surplus, the amount of invested 
 capital in United States bonds is not to be deducted. (T. D. 19695; July 14, 
 1898. ) 
 
12 
 
 Banks and bankers — Special tax — Continued. 
 
 Building and loan associations making loans on collaterals to their own members 
 only, and paying withdrawals of small amounts on demand upon receipts of 
 their own members from whom they receive such deposits of money, are not 
 by reason thereof liable to special tax as bankers. (T. D. 130; May 15, 1900.) 
 
 Loaning money on the personal notes of the borrowers, without collateral security, 
 is not the business of banking contemplated by the statute. (T. D. 20264; 
 October 28, 1898.) 
 
 Manufacturing companies having on hand cash surplus awaiting use in payment 
 of dividends, which surplus meanwhile is loaned upon collaterals; are required 
 to pay special tax as banks under the act of June 13, 1898. The amount of 
 surplus on hand for the purpose of making loans is the basis to be considered 
 in estimating the amount of special tax. (T. D. 19560; June 23, 1898.) 
 
 Merchants who are receiving deposits from grain buyers with which to cash 
 tickets for grain, and not from the general public, do not become, by reason of 
 such transactions, involved in special-tax liability as bankers. (T. D. 20341; 
 November 18, 1898.) 
 
 No part of the undivided profits of any bank is to be included in the amount 
 of capital and surplus on which the special tax is reckoned, except such as the 
 board of directors has authorized to be set apart for use in the general business 
 of banking, and Form 457, on which the bank return is to be made, is intended 
 to be used in conformity with this interpretation of the law and with the 
 requirements of the revenue service. (T. D. 21284; June 20, 1899.) 
 
 See also Decisions 12, 20544, 20648, 21395, 21708. 
 
 Sums deposited by so-called special depositors, who receive as interest part of 
 the earnings of the bank, are considered part of the working capital of a bank 
 and are to be included in. the returns to which the special tax of $2 on each 
 $1,000 thereof is to be reckoned. (T. D. 20645; January 27, 1899.) 
 
 The Attorney-General, in opinion delivered February 4, 1899, holds that the 
 undivided profits of a bank are not surplus and can not be estimated under 
 the act of June 13, 1898, as a part of the bank surplus; and the special tax 
 should be computed on the basis of the capital and surplus for the fiscal year 
 preceding the time at which the assessment is made. (T. D. 20681; Febru- 
 ary 7, 1899. ) 
 
 "Where persons are in business, both as bankers and brokers, and are members of 
 the stock exchange, the value of the seat in the stock exchange is not to be 
 regarded as part of their banking capital, and is not to be taken into account 
 in reckoning the amount of special tax required to be paid by them as bankers. 
 (T. D. 20723; February 18, 1899.) 
 
 "Where a banking firm (not a corporation) changes its name, without change in 
 its membership, special tax is not required to be paid again on account such 
 change. (T. D. 20786; March 2, 1899.) 
 
 The advancing or loaning of money by brokers on the collateral security of stocks, 
 if these loans or advances are confined by them strictly to customers who have 
 given them, as brokers, orders for the purchase of stocks, and the collateral 
 is held solely to secure themselves in filling such orders, is not regarded as 
 involving them in special-tax liability as bankers within the meaning and 
 intent of the statutes. (T. D. 21152; May 12, 1899.) 
 
 The undivided profits of a bank constitute a sum set apart by law or by action 
 of the board of directors, but not used in the business of banking, and, there- 
 fore, not liable to special tax. (T. D. 21224; May 31, 1899.) 
 
 Regulations announced by the Commissioner, as substituted for those prescribed 
 in paragraph 9, Circular 554, governing the preparation of the special assess- 
 ment list for bankers, in making returns. (T. D. 119; May 5, 1900.) 
 
13 
 
 Banks and bankers — Special tax— Continued. 
 
 When the charter of a bank is surrendered and the same persons, who are officers 
 and stockholders, carry on private banking business, these private bankers 
 must make return and pay their own special tax. (T. D. 20336; November 16, 
 1898. ) 
 
 The receiving of employees' deposits on interest does not involve a company or 
 firm in special-tax liability as bankers under paragraph 1, section 2, act of 
 June 13, 1898. (T. D. 20343; November 18, 1898.) 
 
 Where two banks, which have carried on business in separate places and have 
 each paid its special tax, consolidate, the consolidated bank must pay special 
 tax at the rate of $50 from the first day of the month when it began business 
 to the 1st day of July following. (T. D. 20419; December 13, 1898.) 
 
 Incidental banking: 
 Borrowed capital should be taken into account in estimating amount of special 
 tax required from bankers under the first paragraph of section 2, act of June 
 13, 1898. (T. D. 19793; July 28, 1898.) 
 
 1. In cases of "incidental banking,'' wherein a firm uses, for purposes of lending, 
 only those funds derived from the proceeds of merchandise sold, the special 
 tax is applicable; and, if the funds thus used have not exceeded $25,000 in the 
 preceding fiscal year, the amount of special tax will be $50. 
 
 2. On a charter party the tax is required on the original charter party only, the 
 stamp affixed being for the entire tax. Copies of the charter party are not 
 taxable. 
 
 3. Shipping receipts and bills of lading, issued in exchange, are alike taxable at 
 10 cents, and the requisite stamp must be affixed to each; but no tax is required 
 on copies. 
 
 4. A business firm, when acting as brokers, must pay a tax of only 10 cents on 
 each contract of sale but none on contracts of purchase. (T. D. 19571; June 
 25, 1898.) 
 
 Private banks, " unincorporated," having a capital less than $25,000, are never- 
 theless liable to the special tax of $50 imposed by paragraph 1, section 2, act 
 of June 13, 1898. (T. D. 19936; August 23, 1898.) 
 
 The definition of "banker," who is liable to pay the special tax imposed by the 
 first paragraph of section 2, act of June 13, 1898, is that of a firm or company 
 having "a place of business where credits are opened by the deposit * * * 
 of money or currency, subject to be paid or remitted upon draft, check, or 
 order," whether a profit be realized out of such deposits or not. (T. D. 
 i9682; June 12, 1898.) 
 
 Making bank returns: 
 Bank returns should be made in conformity with the following rules, viz: The 
 tax shall be computed upon the capital and in estimating capital surplus 
 shall be included. In estimating surplus undivided profits must be included. 
 The law provides that the amount of such annual tax shall in all cases be 
 computed on the basis of the capital and surplus for the preceding fiscal year, 
 and this office holds that if the capital and surplus varied from time to time 
 during the preceding fiscal year the same may be averaged, as was specifically 
 provided by law in the case of capital under the revenue act of June 30, 1864. 
 It was found to be necessary in the case of deposits under the act of 1864 to 
 ascertain the average by adding together the amounts at the close of business 
 of each business day and dividing the amount by the number of business days. 
 , This method should be adopted under the new law. The need of averaging 
 is obviously greatest as to undivided profits. It is held to be.improper to 
 
14 
 
 Banks and bankers — Special tax — Continued. 
 Making bank returns — Continued. 
 
 reduce the amount of undivided profits by unaccrued interest or by profits to 
 be divided. (T. D. 19797; July 29, 1898.) 
 
 Note.— This and similar rulings were subsequently modified in conformity 
 with an opinion rendered by the Attorney-General February 4, 1899, holding 
 that "the undivided profits of a bank are not surplus, and can not be esti- 
 mated under the law in question as a part of the bank's surplus." (See vol. 
 1, No. 6 (1899), p. 287, T. D.) 
 
 The lending of money on household goods or on other chattel property is not 
 the business of banking as contemplated by the statute of June 13, 1898. (T. 
 D. 20344; November IS, 1898.) 
 
 Where the capital of a bank exceeds $25,000, the tax of $2 (additional to the 
 $50 special tax) is only required to be paid on each $1,000 over and above the 
 $25,000 of capital. For any excess that is less than $1,000 no additional 
 special tax is required. (T. D. 20166; October 11, 1898.) 
 
 Banking — Liabilities classified: 
 
 The test question as to the liability of a company or firm as bankers, as laid down 
 in the case of Selden v. The Equitable Trust Company (94 U. S. R., 419), is 
 whether or not, having a place of business, a firm or person is embraced in 
 any of the three following classes: 
 
 First. Do th'ey have a place of business "where credits are opened (to the gen- 
 eral public) by the. deposit or collection of money or currency, subject to be 
 paid or remitted upon draft, check, or order?" 
 
 Second. Do they have a place of business where money is advanced or loaned 
 on collaterals (stocks, bonds, etc. )? 
 
 Third. Do they have a place of business where stocks, bonds, bullion, bills of 
 exchange, or promissory notes are received from another person, for sale, or 
 bills of exchange or promissory notes are received for discount, belonging to 
 that other person? (T. D. 20349; November 21, 1898.) 
 
 Merchants do not bring themselves within the definition of bankers in the first 
 paragraph of section 2 in the act of June 13, 1898, by reason of selling their 
 own drafts to their customers; they are not, on this account, required to pay 
 special tax as bankers. (T. D. 20365; November 21,' 1898.) 
 
 Special tax must be paid for every branch established by a bank at which the 
 business of banking is carried on. (T. D. 20397; December 6, 1898.) 
 Capital and surplus: 
 
 A company, even though it does not receive on deposit, nor collect money or 
 currency subject to draft, check, or order, and does not receive stocks, bonds, 
 bullion, bills of exchange, or promissory notes for discount or sale, is never- 
 theless required to pay special tax as a bank, if it advances or loans money on 
 any of these securities as collateral; but it is not subject to this special tax if 
 its advances or loans are made only on the security of mortgages on real 
 estate, with accompanying promissory notes. (T. D. 460; January 13, 1902.) 
 
 A bank beginning business during the year ending June 30, 1901, is not required 
 to pay special tax on its capital for this year. Under the new law going into 
 effect July 1, 1901, a bank then or thereafter beginning business must pay the 
 special tax reckoned on its capital "at the time of commencing business." 
 (T. D. 293; March 7, 1901.) 
 
 Bankers must return for taxation capital, surplus, undivided profits, and bor- 
 rowed money used in the business of banking. (T. D. 440; December 3, 1901.) 
 
 Banks or stationers may purchase imprinted stamps which they procured and 
 sold to, their customers and, as ; the bona fide owners thereof, present claims 
 
15 
 
 Banks and bankers— Special tax— Continued. 
 Capital and surplus — Continued. 
 
 in their own names for the redemption of such stamps without regard to the 
 number purchased from each customer. (See Internal-revenue circular No. 
 603.) (T. D. 361; June 18, 1901.) 
 
 In addition to the third clause of section 3408, Revised Statutes, taxing the cir- 
 culation of banks, section 19, act of February 8, 1875 (18 Stat., 311), provides 
 that every person, firm, association, other than national bank associations, 
 and every corporation, State bank, or State banking association, shall pay a 
 tax of 10 per cent on the amount of their own notes used for circulation and 
 paid out by them. (T. D. 453; December 28, 1901.) 
 
 Opinion of the Attorney-General on capital and surplus of banks. Previous 
 opinion of February 4, 1899; reaffirmed. Congress, in taxing capital, meant 
 to tax only the capital of the bank in its strict technical sense under the 
 banking laws, and that, in taxing surplus, it meant the fund formally set 
 apart by the board of directors as surplus in its restricted and technical sense 
 in banking. (T. D. 262; January 5, 1901-.) 
 
 Question of the tax on undivided profits of banks involved in suits against Col- 
 lector Treat pending in the United States circuit court of the southern district 
 of New York. Returns should be made and tax assessed according to ruling 
 of this office as contained in Circular No. 615. If abatement claims are filed, 
 further action may be postponed, awaiting a final judicial decision. (T. D. 464; 
 January 29, 1902. ) 
 
 The statute requiring that the special tax imposed on banks shall be reckoned 
 on the basis of the capital and surplus, the phrase, "in estimating capital, sur- 
 plus shall be included" is not to be construed as having some restricted mean- 
 ing, but is to be taken in its natural and ordinary sense as including the entire 
 overplus of assets over liabilities, and, therefore, as including undivided 
 profits. (T. D. 538; June 23, 1902.) 
 
 The third clause of section 3408, Revised Statutes, taxing circulation of bank 
 notes or obligations, is still in force; and sections 19 and 20, act of February 8, 
 1875, imposing a tax of 10 per cent on circulation of notes of other persons or 
 associations than national banking associations, are also in force. (T. D. 453; 
 December 28, 1901.) 
 
 The question, involving special tax on the undivided profits of banks, raised by 
 
 i suit of Leather Manufacturers' National Bank against Collector Treat, decided 
 in favor of the Government. Pending appeal, abatement claims are filed and 
 collection of tax postponed, awaiting further instructions. (T. D. 549; July 
 12, 1902. ) 
 
 Trust companies doing a banking business must include with their banking cap- 
 ital, in reckoning the amount of special tax which they are required to pay, 
 the amount set apart for use in conducting their storage business. (T. D. 402; 
 August 8, 1901.) 
 
 Trust companies doing a general banking business must include, as part of their 
 capital in their special-tax return, moneys required to be deposited as security 
 with the treasurer of the State, as required by State laws, before doing busi- 
 ness.— New ruling. (T. D. 401; August 8, 1901.) 
 
 Ruling 440, Treasury decision of December 3, 1901, is to be applied to special- tax 
 returns made by banks for the current year, and not to former years in cases 
 of banks that have made returns and paid special tax for those years. (T. D. 
 446; December 11, 1901.) 
 
 Where a bank has made return and paid special tax for the year beginning 
 July 1, 1901, on its capital and surplus for the preceding fiscal year, it is not 
 
16 
 
 Banks and bankers — Special tax — Continued. 
 Capital and surplus — Continued. 
 
 required to pay any further special tax for the current year by reason of an 
 increase of its capital. (T. D. 446; December 11, 1901.) 
 
 While in returns made by banks there may be deducted from the undivided 
 profits any amount necessary to pay dividends that have been actually 
 declared, and also any reasonable sum for contingent expenses, no deduction 
 is allowable of any sum for "prospective losses." (T. D. 574; August 29, 
 1902.) 
 Bank checks — Return — Cancellation. 
 
 The joint resolution approved by Congress February 26, 1902, authorized the 
 return by the Commissioner of Internal Revenue, after cancellation, of bank 
 checks, drafts, etc., having imprinted stamps thereon, to the owners thereof, 
 and for other purposes. All such checks, drafts, and so forth, remaining 
 unclaimed by the owner at the expiration of one year after the passage of this 
 act are directed to be destroyed in such manner as may be prescribed by the 
 Commissioner, with the approval of the Secretary of the Treasury. (T. D. 476; 
 February 26, 1902. ) 
 Bank circulation. 
 
 In the case of Iron Gate Bank v. Maggie A. Brady, executrix of James D. Brady, 
 it appears that the bank refused to pay a tax of 10 per cent upon notes issued 
 by it as currency and paid out as such. Collector Brady distrained upon the 
 property of the bank to collect the tax, amounting to §70. Suit for damages 
 originally brought against Collector Brady. Case remanded by the Supreme 
 Court to the circuit court, with instructions to set aside judgment, and enter 
 one abating the action by reason of the death of the defendant, being an action 
 of tort. (T. D. 493; March 29, 1902.) 
 Bank surplus — Special tax. 
 
 Construing the war-revenue act in reference to special tax on the capital and 
 surplus of banks, the United States circuit for the southern district of New 
 York held that Congress used the word "surplus" in its ordinary sense as 
 indicating the amount left over after setting aside sufficient of the assets of 
 a banker to meet his liabilities. This ruling of the court applies to national 
 banks and to banking firms alike. (T. D. 538; June 23, 1902.) 
 
 Cases in which are involved questions relating to the collection of taxes on the 
 undivided profits of banks are postponed, awaiting a final judicial decision, 
 as indicated in Treasury Decision 464. (T. D. 472; February 7, 1902.) 
 
 It is held in pursuance of the decision in the case of the Leather Manufacturers' 
 National Bank <:. C. H. Treat, collector, rendered by the circuit court of 
 appeals, second circuit, New York, that, under section 2, act of June 13, 1898, 
 bankers are required to return for the year ended June 30, 1902, for taxation, 
 all moneys used by them in carrying on their business, and that banks in 
 making their returns should include therein their capital, surplus, and undi- 
 vided profits, or other profit and loss account, except so much thereof as may 
 be actually necessary and has been set apart to meet ascertained liabilities and 
 losses or to pay dividends actually declared by the directors of the banks, to 
 pay taxes, or to pay fixed annual charges, and other necessary annual 
 expenses. (T. D. 569; August 20, 1902.) 
 Bank tax — Undivided profits on capital. 
 
 The term "capital" should be read as meaning the same thing in respect to a 
 corporation that it does in respect to an individual banker. When it appears 
 that undivided profits have been carried over many dividend periods and 
 have in the meantime been used in the business like the other assets of the 
 
17 
 
 Bank tax — Undivided profits on capital — Continued. 
 
 corporation, they are to be regarded as having become an accretion to the 
 capital, and as such are to be taken into account in reckoning the special tax 
 required of the corporation under section 2 of the act of June 13, 1898. (T. D. 
 750; February 9, 1905.) 
 
 Bay nun from Porto Rico — Stamp tax. 
 
 Collector instructed that when tax-paid packages of Porto Rican bay rum are 
 received on the premises of a wholesale liquor dealer, he should make entry 
 of the same on his book, Form 52, and when he disposes of the same he should 
 also make appropriate entry on the book in like manner as in case of other 
 packages of distilled spirits. Where a dealer makes a change of package of 
 the goods in question and the resulting packages contain 5 wine gallons or 
 more, he should obtain and affix wholesale liquor dealers' stamps in the usual 
 manner. (T. D. 528; May 26, 1902.) 
 
 Beer — Special tax. 
 
 A brewer who holds the requisite special-tax stamp posted up at his place of 
 business as a malt-liquor dealer for the sale of his beer in bottles may deliver 
 this bottled beer from wagons driven from place to place, or fro*m places of 
 storage to his regular customers, whose standing orders he has at his place of 
 business, without involving himself in additional special-tax liability. (T. D. 
 661; May 16, 1903.) 
 
 A liquor dealer who travels with horse and wagon, receiving written orders for 
 bottled beer, taking orders to his place of business, and thereafter taking out 
 the bottled beer and delivering it to those who had given him orders, 
 involves himself in special-tax liability at the places of such deliveries, unless 
 he shows that in every instance he set apart the bottled beer at his place of 
 business as the property, absolutely and unconditionally, of the person who 
 had ordered it, and took it directly from that place to the purchaser and made 
 delivery without any condition as to payment. (T. D. 494; March 29, 1902.) 
 
 A mild form of beer put up in bottles and labeled " J. D. Iler's Rochester Tonic, 
 Kansas City, Mo., U. S. A.," liable to stamp tax as a tonic under Schedule B, 
 act of June 13, 1898, while that statute was in force: Decision of the United v 
 States circuit court for the eighth circuit, December term, 1902. (T. D. 630; 
 February 25, 1903.) 
 
 A person who takes orders for beer and the money in payment therefor and 
 transmits the orders and money to a brewer, who makes the sales and ship- 
 ments directly to the persons giving the orders, is not required to pay special 
 tax therefor, even though he receives a commission from the brewer on these 
 orders. (T. D. 699; September 17, 1903.) 
 
 Claims for refund of beer taxes must be presented within two years after pay- 
 ment of the tax. Payment under protest is not regarded as a claim. (T. D. 
 423; October 24, 1901.) 
 
 Collectors are instructed with reference to requisitions for and sale of beer stamps, 
 that as no stamps, denoting the new rate of tax, will be imprinted by collectors, 
 all stamps in their hands on July 1, 1902, should be returned to the Commis- 
 sioner. Care should be exercised that such stamps may not be packed, 
 scheduled, or shipped with stamps of the same kind which have been received 
 from brewers or manufacturers under section 5 of the act of April 12, 1902. 
 (T. D. 529; May 26, 1902.) 
 
 Internal-revenue circular No. 605, extending time when the regulations requir- 
 ing cancellation of beer stamps by perforations shall take effect, from August 1 
 to September 1, 1901. (T. D. 381; July 16, 1901.) 
 
 31331—05 2 
 
18 
 
 Beer — Special tax — Continued. 
 
 Preparatory to the execution of the act approved March 2, 1901, collectors are 
 instructed to make requisitions for the usual supply of beer, cigar, and small 
 cigarette stamps of the new issue as early as June 15, for sale to brewers and 
 manufacturers on and after July 1, and all beer, cigar, and small cigarette 
 stamps of present issue in the hands of collectors July 1 should be returned to 
 this office, where the value of the same will be credited in collectors' accounts, 
 and all such stamps in the hands of brewers and manufacturers on that date 
 may be redeemed under existing provisions of law as stamps for which they 
 have no use. (T. D. S54; June 3, 1901.) 
 
 Revised internal-revenue records should be prepared relating to the sale of 
 stamps for beer, cigars, cigarettes, tobacco, and snufi, and special taxes, which 
 take effect July 1, 1901. (T. D. 360; June 18, 1901.) 
 
 Records Nos. 3, 5, and 7, relating, respectively, to the daily sale of beer, cigar, 
 and tobacco stamps, and record No. 11, relating to cigar manufacturers' 
 accounts, have been revised. The present records, with proper changes in 
 headings, will be used until the revised records are ready for distribution. 
 (T. P. 366; June 22, 1901.) 
 
 Special tax is required to be paid for the manufacture for sale of the beverage 
 called "beerine," which is made in part of fermented malt liquor and "is like 
 a light table beer," and tax is required to be paid on this beer by the manu- 
 facturer as a malt-liquor dealer. (T. D. 429; November 1, 1901.) 
 
 The act to repeal war-revenue taxation, approved April 12, 1902, provides, with 
 N reference to exchanging and accounting for beer stamps, that, until appropri- 
 
 ate stamps are prepared and furnished to collectors, the stamps heretofore used 
 to denote the payment of revenue tax on beer may, on and after July 1, 1902, 
 be presented to collectors of internal revenue, who shall receive them at the 
 price paid for such stamps by the purchasers and issue in lieu thereof new or 
 imprinted stamps at the rate provided by said act. (T. D. 503; April 16, 
 1902. 
 
 The fact that beer is conveyed through pipes from a brewery and bottled without 
 having been put up in packages to which tax stamps could be affixed does not 
 entitle the brewer to sell this bottled beer without paying special tax therefor 
 as a malt-liquor dealer. The exempting provision of the statute relates only 
 to a brewer's sales of beer in the original kegs or barrels to which the tax 
 stamps are affixed. (T. D. 391; July 30, 1901.) 
 
 Beerine — Special tax. 
 
 A beverage made by mixing the preparation called "beerine extract" with 
 ordinary tax-paid beer and water, the quantity of tax-paid beer used therein 
 being so small as to merely constitute a flavor, and the beverage, though hav- 
 ing the flavor, taste, and appearance of a malt liquor, containing but 0.49 per 
 cent of alcohol by volume, does not come within the notice of the internal- 
 revenue laws, as it is not regarded as among those fermented malt liquors for 
 the manufacture and sale of which special tax is required to be paid. This 
 ruling, however, is not applicable to any beverage called "beerine," which 
 contains a larger per cent of alcohol, or in which a larger proportion of lager 
 beer is used than is herein set forth. (T. D. 514; April 30, 1902. ) 
 
 Brewers' packages. 
 
 Beer packages — Spigot holes: 
 Law forbids more than two spigot holes in beer packages. — Brewers allowed 
 three months in which to put packages in legal condition. (T. D. 743; Jan- 
 uary 25, 1904. ) 
 
19 
 
 Brewers' packages — Continued. 
 Beer-spoiled stamps: 
 
 No refund will be allowed of money paid for stamps on packages of beer which 
 have soured, if the packages have been removed from the brewery. (T. D. 
 799; June 14, 1904.) 
 Brewers' packages: 
 
 Referring to the closing of unauthorized spigot holes under certain conditions, 
 and to the Commissioner's letter on tbe subject, dated January 28, 1904, it is 
 held that the terms of said letter will not be construed to compel the removal 
 of the metal rim or bushing surrounding tbe extra spigot hole, if the metal is 
 shaped like the frustum of a cone, thus requiring a plug in the shape of a cir- 
 cular wedge which can not be driven into the interior of the cask. The plug 
 so utilized will be planed even with the surface of the outer edge of the bush- 
 ing in which it is inserted. (T. D. 751; February 16, 1904.) 
 Spigot holes: 
 
 Section 3342, Revised Statutes, limits the number of spigot holes which may 
 lawfully exist in a beer package to two, one of which must be in the head and 
 the other in the side. This provision of law has been construed to mean that 
 there may be a spigot hole in the side in addition to the bunghole in the bilge 
 of the barrel, except in cases where the package is arranged with a spigot hole 
 in the bung itself, in which case no other spigot hole in the side is permissible. 
 (T. D. 762; March 11, 1904.) 
 Beneficial interests^Legacy tax. 
 
 A beneficial interest, although made dependent by the testator's will upon some 
 uncertain event, is nevertheless a vested interest where the event depends 
 solely on the personal act or choice of the beneficiary. (T. D. 599; December 
 1,1902.) 
 
 Circular No. 630 of July 15, 1902, has been modified by the opinion of the 
 Attorney-General of August 1, 1902. That circular gave the impression that, 
 in view of section 3 of the act approved June 27, 1902, tax did not attach to 
 any legacies the actual possession or enjoyment of which was postponed until 
 July 1, 1902, or thereafter; and that tax did not attach to life interests which 
 did not come into the hands of the trustee prior to July 1, 1902. The circular, 
 so far as it is inconsistent with the opinion of the Attorney-General dated 
 August 1, 1902, is completely superseded by that opinion. (T. D. 595; No- 
 vember 14, 1902.) 
 
 Where any beneficial interest in personal property exceeding $10,000 in actual 
 value, passing under the will of any person who died prior to July 1, 1902, 
 and since June 13, 1898, became a vested interest at his death, tax attached 
 thereto, even though the actual possession of the interest, whether by trustees 
 or beneficiaries, was postponed until July 1, 1902, or later. (T. D. 595; 
 November 14, 1902. ) 
 Beverages — Special tax. 
 
 Referring to circular 636, dated December 15, 1902, it is held that, if any manu- 
 facturer of extracts or sirups, soda water, or other drinks susceptible of use as 
 a beverage, introduces into such extract, sirup, or compound, in the manufac- 
 ture of the same, a quantity of spirits or wine, or compounds thereof, not 
 necessary in the manufacture or for the preservation of the same, thus con- 
 stituting a compound liquor within the meaning of the statute, such manufac- 
 turer should be held liable to special tax as a rectifier, and wholesale or retail 
 liquor dealer, or both, according to the quantity sold at one time, and the 
 venders of such compound will render themselves liable to special tax with 
 relation to the sale of the same. (T. D. 624; January 24, 1903.) 
 
20 
 
 Bills of exchange, foreign. 
 
 The amendment to paragraph 5 of Schedule A, exempting from tax certain for- 
 eign bills of exchange drawn against the value of products actually exported, 
 construed as to the act of March 2, 1901. (T. D. 385; July 23, 1901.) 
 
 Two facts must be established, under the war- revenue law as amended by the act 
 of March 2, 1901, in order that a foreign bill of exchange may be exempted 
 from stamp tax, viz: 1. That the merchandise against the value of which the 
 bill of exchange is drawn was actually exported. 2. The value of such mer- 
 chandise. (T. D. 385; July 23, 1901.) 
 
 Bills of lading — Stamp tax. (See also Decision 13.) 
 
 Bills of lading or receipts from transportation companies may include more than 
 one shipment therein, provided that a stamp or stamps amounting in value to 
 1 cent for each shipment shall be affixed thereto and canceled. (T. D. 20194; 
 October 13, 1898.) 
 
 In the case of Fairbanks v. United States (181 U. S. 283) the Supreme Court of 
 the United States held the 10 cent stamp tax on foreign bills of lading to be 
 unconstitutional; and the Attorney-General holds that "a bill of lading which 
 is in part domestic, given for transportation within the United States as well 
 as for export, may be taxed on the domestic product," adding his opinion 
 that " all bills of lading for goods transported by rail from place to place within 
 the United States ought to have a 1-cent stamp attached, regardless of the 
 ultimate destination of the goods." (T. D. 524; May 17, 1902.) 
 
 Carriers are not required by law to issue duplicates of domestic bills of lading, 
 but if they do issue them they must stamp them with a 1-cent stamp. (T. D. 
 21645; October 7, 1899.) . 
 
 If a local expressman accepts a package for delivery to a railroad, steamship, or 
 other express company within the limits of the city in which said local express- 
 man has his office, no receipt is required to be issued by said local expressman, 
 but the railroad, steamship, or express company receiving the package from 
 the local expressman must issue a receipt or bill of lading and affix a 1-cent 
 stamp thereto. (T. D. 21692; October 24, 1899.) 
 
 Memorandum receipts for freight, afterwards exchanged for bills of lading, must 
 be stamped when issued. (T. D. 21688; October 21, 1899.) 
 
 No obligation is imposed on transportation companies to issue export bills of 
 lading, but when such bills are issued in duplicate, one of them, as the origi- 
 nal, must be stamped at the rate of 10 cents. (T. D. 21169 and 21496; May 18 
 and August 12, 1899.) 
 
 Opinion of the Attorney-General on the question of the taxability of export bills 
 of lading, or receipts, issued for goods shipped from the United States to Can- 
 ada or Mexico by rail. Such instruments taxable at the rate of 1 cent instead 
 of 10 cents, as heretofore. (T. D. 6; January 5, 1900.) 
 
 Where the shipper of goods has issued to him a bill of lading on which he pays 
 the charges for the storage and also the charges for transportation of the 
 goods, but allows the goods to remain in the storage house an indefinite length 
 of time before shipment, said bill of lading will be subject to taxation as a 
 warehouse receipt. (T. D. 20914; March 24, 1899.) 
 
 The Attorney-General, for guidance of all officers of the Internal-Revenue 
 Service, promulgated, August 27, 1898, an opinion holding that where an 
 express company receives money for transportation it is regarded as "goods" 
 under Schedule A of the war-revenue act of June 13, 1898, and a bill of lading 
 must be issued therefor and a stamp affixed. (T. D. 19970; August 27, 1898.) 
 
 The Attorney-General, for the information and guidance of all officers of the 
 Internal-Revenue Service, promulgated an opinion, August 26, 1898, holding 
 
21 
 
 Sills of lading — Stamp tax— Continued. 
 
 that receipts, bills of lading, or manifests issued by express companies in cases 
 of shipment of money and securities of the United States Government under 
 contract for transportation of same are subject to stamp tax under act of 1898. 
 (T. B. 19996; August 31, 1898.) 
 
 The Attorney-General holds that the law which makes it the duty of the carrier 
 to issue a bill of lading or a receipt to a person from whom any goods are 
 accepted for transportation, and to stamp the same, does not apply to baggage 
 received by railroad companies and carried upon the same train with the 
 owner, whether such baggage be the quantity allowed ordinarily by the rules of 
 the railroad company or is in excess of such amount. (T. D. 20169; October 
 12, 1898. ) 
 
 When tax is paid on general bundle of newspapers, each package in the general 
 bundle which is taken therefrom and delivered at intermediate points does not 
 require a stamp. (T. D. 19846; August 9, 1898.) 
 
 A 10-cent stamp must be affixed to bills of lading issued for goods exported to 
 foreign countries, with certain exceptions as to Mexico and Canada. The con- 
 stitutionality of this provision is to be decided by the United States Supreme 
 Court. (T. D. 71; March 15, 1900. ) 
 
 Exportation of articles in bond (Schedule B) must be billed direct from manu- 
 factory to consignee at foreign port. Articles billed (not sold) to an agent 
 must be recased and exported or exported without change by the agent within 
 ninety days from date of removal for export, the agent to secure duplicate 
 bills of lading in the name of the principal and forward same to him. (T. D. 59; 
 March 6, 1900. ) 
 
 All copies of instruments issued by carriers to consignors are held to be subject 
 to stamp tax, as duplicates. (T. D. 78; March 20, 1900.) 
 
 Carriers who accept merchandise for transportation are required to furnish the 
 shipper a stamped bill of lading or receipt therefor. If they fail to do this, 
 they incur criminal liability; but if they refuse transportation for goods, except 
 on condition that the shipper purchase the stamp or stamps in addition to the 
 customary charge for transportation, the war-revenue law provides no remedy, 
 and the aggrieved parties must look to either the common or the statute law 
 of the State, defining the obligations of common carriers. (T. D. 19803; 
 August 1, 1898. ) 
 
 Common carriers shall issue bills of lading, manifest, or other evidence of receipt 
 and forwarding. "Shipment" defined. On a through bill of lading it is one 
 shipment, though several modes of conveyance are employed. Every separate 
 shipment requires evidence that it has been made, and to the evidence the 
 stamp is affixed. (T. D. 19829; August 4, 1898.) 
 
 Duplicates and triplicates required by law, or regulations pursuant to law, tax- 
 able at 10 cents each — duplicates made by carrier, for his own convenience, 
 held to be copies and not liable to stamp tax. (T. D. 19734; July 19, 1898.) 
 
 Bills of lading classified. 
 
 1. Stamped bills of lading are not required by the law to be issued by express 
 and freight companies to individual persons, firms, or local companies for the 
 delivery of packages, parcels, bundles, railway baggage and the like, solely on 
 call and at special request, in various localities, but within city limits, adjacent 
 to their own place of business. 
 
 2. Stamp tax is imposed .only upon transactions of express business conducted 
 upon regular routes and at designated times, upon regular trips, and as a busi- 
 ness of transportation from one point or place in the country to another point 
 or place over regular routes and through lines of traffic; and the tax is imposed 
 upon the shipment. 
 
22 
 
 Bills of lading classified — Continued. 
 
 3. If goods are accepted for through transportation by tne one who takes them 
 from the shipper or consignor and are carried over his own line only part way, 
 being delivered to an express or transportation company for further transmis- 
 sion, the receipt by the company to whom he delivers the goods for further 
 carriage would not be subject to stamp duties, it being only in acknowledg- 
 ment of receipt of goods from the company which undertakes through trans- 
 mission, and not a receipt to the shipper or consignor. (T. D. 19965; August 
 25, 1898.) 
 
 Regulations set forth in Circular No. 48, Internal Revenue No. 562, as to bills of 
 lading for articles exported free of tax under section 22, act of June 13, 1898. 
 (T. D. 101; April 18, 1900.) 
 
 The Attorney-General, in opinion dated January 2, 1900, holds that export bills 
 of lading or receipts issued for goods shipped from the United States to Can- 
 ada or to Mexico by rail require a 1-cent stamp, and not a 10-cent stamp, as 
 theretofore required under Schedule A, war-revenue law. (T. D. 6; January 5, 
 1900.) 
 
 The regulations governing the exportation of proprietary articles in bond (Series 
 7, No. 24, Supplement No. 1, March 10, 1899) require the manufacturer to file 
 with the collector of the district duplicate bills of lading covering the trans- 
 portation of the articles to a port or place outside the jurisdiction of the United 
 States, and describing the articles by marks and serial numbers. (T. D. 86; 
 March 31, 1900.) 
 
 (See also Decisions 19571, p. 18; 19604, p. 251.) 
 
 Billiards, etc. (See also Decisions, 19610, 19745, 20313.) 
 
 Billiard room — "Open to the public." 
 
 A social club admitting to its privileges its own members and their invited guests 
 only is not required to pay a special tax as the proprietor of a billiard room, 
 under paragraph 9, section 2, act of June 13, 1898, inasmuch as the special tax 
 imposed upon proprietors of bowling alleys and billiard rooms expressly relates 
 to a building or place "open to the public." (T. D. 19743; July 21, 1898.) 
 
 Billiard and pool tables — Special tax. 
 
 A bagatelle table, being neither a billiard table nor a pool table within the mean- 
 ing of the ninth paragraph of section 2, act of June 13, 1898, is not liable to 
 special tax. (T. D. 20122; September 30, 1898.) 
 
 A tivoli table, which is materially different from a billiard or pool table, even 
 though the ball used thereon is propelled by a cue, is not subject to special 
 tax under the ninth paragraph of section 2 of the act of June 13, 1898. (T. D. 
 '20126; October 4, 1898.) 
 
 In reports now for assessment against proprietors of tivoli peg pool tables under 
 ruling 259, the 50 per cent penalty should be omitted, and no report thereon 
 should be made for former years. (T. D. 284; February 15, 1901.) 
 
 Proprietors' of safety lynn tables are held to be liable to special tax, as proprie- 
 tors of pool tables. (T. D. 173; July 6, 1900.) 
 
 Proprietors of any tables on which games of pool are played, even if these pool 
 games differ in some respects from the ordinary games of pool, must be re- 
 quired to pay special tax thereon. (T. D. 123; August 28, 1900.) 
 
 Special tax is required to be paid for the tables called the Klondike, the Stevens, 
 the Manhattan, the safety lynn, and the tivoli peg pool tables, the games 
 played thereon being recognized by billiard players as among the various 
 kinds of pool games. (T. D. 259; December 21, 1900.) 
 
23 
 
 Billiard and pool tallies— Special tax"— Continued. 
 
 Special tax is not required to be paid for any tables on which games are played 
 unless they are billiard or pool tables, as contemplated by paragraph 9 of sec- 
 tion 2 of the war-revenue act. (T. D. 20505; January 6, 1899, ) 
 
 The Italian game called "boccie," not being among the games mentioned in the 
 ninth paragraph of section 2, act of June 13, 1898, special tax is not required 
 to be paid therefor under that paragraph. (T. D. 20784; March 1, 1899.) 
 
 The law imposing special tax on proprietors of billiard and pool tables is con- 
 tinued in force by the act approved March 2, 1901. (T. D. 301; March 18, 
 1901.) 
 
 The proprietor of the so-called " twentieth century pool table," which is " open 
 to the public with or without price," is required to pay special tax. (T. D. 
 279; February 13, 1901.) 
 
 Where sworn return has been made and special-tax stamps have been issued for 
 bowling alleys only, and thereafter the proprietor discontinues the use of the 
 bowling alleys and substitutes pool tables for them, these special-tax stamps 
 can not be made to answer for such tables. (T. D. 231; October 12, 1900.) 
 
 Bills of lading 1 — Transportation. 
 
 Bills of lading issued by a carrier for transportation of goods to a foreign coun- 
 try require a 1-cent stamp to cover the domestic transportation, and the same 
 rule governs in the case of bills of lading issued for goods shipped by railroad 
 from places in the United States to places in Canada or Mexico. (See 
 Attorney-General's Opinion, dated May 15, 1902.) (T. D. 524; May 17, 1902.) 
 
 In refunding sums paid for documentary stamps used on export bills of lading 
 it does not seem to be practicable as a rule to allow claims except from persons 
 who actually purchased and affixed the stamps to such instruments. If in 
 any case the claim is made in the name of any person or corporation other than 
 the one who purchased and affixed the stamps, such claim must be accompa- 
 nied by a waiver from the person who or corporation which purchased and 
 affixed the stamps, of any rights he or it may have to a refund on account 
 of the stamps used. (T. D. 577; September 5, 1902.) 
 
 The Attorney-General, in an opinion, promulgated for information and guidance 
 of internal-revenue officers, held, on October 21, 1898, that express matter 
 carried for a railroad company free, in pursuance of a contract with the 
 express company, is exempt from the stamp tax imposed by the act of June 
 13, 1898. (T. D. 20240; October 25, 1898.) 
 
 Bills of lading — Export tax. 
 
 Rehearing asked for in the United States Supreme Court in case of Fairbanks v. 
 The United States, wherein the export tax on bills of lading was declared 
 unconstitutional. Claims for refunding of tax may be filed, in order to save 
 the bar prescribed by the statutes of limitation, but will not be considered 
 until after the rehearing. (T. D. 355; June 5, 1901.) 
 
 Stamp tax on export bills of lading declared April 15, 1901, to be unconstitu- 
 tional by the United States Supreme Court, and stamps no longer required on 
 such instruments. (T. D. 328; April 19, 1901.) 
 
 The United States Supreme Court, having refused a rehearing in the case of Fair- 
 banks v. The United States, held that claims for refunding export tax should be 
 accompanied by the bills of lading with the stamps affixed thereto, but in 
 cases where the bills of lading can not be obtained the duplicate bills of lading 
 should be presented to the collector for his examination and a statement made 
 in the claim showing why the stamps can not be procured. Where neither 
 the bills of lading nor the duplicates thereof can be submitted to the collector, 
 
24 
 
 Bills of lading — Export tax — Continued.' 
 
 the books of the claimant should be submitted to the collector in order that 
 he may be able to verify the claim. It must be shown that the claimant paid 
 for the stamps and whether the full face value was paid. (T. D. 452; Decem- 
 ber 27, 1901.) 
 "Brokers' orders — Stamp tax. 
 A commercial broker : 
 
 If each of a broker's orders is, in fact, completed on a board of trade as "a bona 
 fide transaction," he is simply a commercial broker, and required to pay special 
 tax accordingly and not to pay the special tax contemplated in Schedule A, 
 act March 2, 1901. (T. D. 331; April 22, 1901.) 
 Orders when taken must be stamped : 
 
 A person conducting a "bucket shop," when taking an order from a customer, is 
 required to pay stamp tax on the order, and commission merchant who receives 
 the order must pay stamp tax on his own memorandum, or agreement, in 
 filling the order. The memorandum of the transaction is simply a convenient 
 means of identifying it and of ascertaining the amount of tax due. (T. D. 
 345; May 17, 1901.) 
 
 The rates of taxation imposed on orders, whether drawn in the United States or 
 in a foreign land, for the payment of money take effect on and after July 1, 
 1901. (T.D. 323; April 11, 1901.) 
 Transactions nnder section 8, act of March 2, 1901 : 
 
 Every person engaged in the transactions described in the third paragraph of 
 section 8 of the act of March 2, 1901, is (although all the orders received from 
 his customers upon margins deposited by them are transmitted to another 
 bucket-shop broker elsewhere) required to file with the collector the "notice 
 in writing under oath" as a broker of the second class himself, and is required 
 to deliver to each of his customers in the transaction, "at the time of making 
 the same, a written memorandum * * * to which the proper stamp shall 
 be affixed before delivery." (T. D. 329; April 20, 1901.) 
 Blanks, improper use. 
 
 The furnishing of Government blanks for private use, or the use of such blanks 
 for private purposes, is held to be unlawful. (T. D., 513; April 29, 1902.) 
 Blending wines — Special tax. 
 
 Manufacturers of wine may mix or blend wines of any name or description, if 
 the result of such mixing or blending is wine of a superior quality or flavor, as 
 recognized by wine manufacturers in general and the wine trade. They are 
 not required to pay special tax therefor as rectifiers, even when the blending 
 is with fortified sweet wines, unless it be shown that the resulting product is 
 not a genuine wine as known to legitimate wine manufacturers, but is a spuri- 
 ous, imitation, or compound liquor. (T. D. 419; May 13, 1902.) 
 
 The blending of wines for the purpose of producing wine of an improved flavor 
 and quality does not produce a spurious, imitation, or compound liquor within 
 contemplation of the third paragraph of section 3244, Revised Statutes, and 
 the special tax of a rectifier is not required to be paid on account of such blend- 
 ing. But the blending of fortified sweet wine with a simply fermented wine, 
 or with unfermented grape juice, results in the production of a compound 
 liquor, and every person making such compound for sale involves himself in 
 liability as a rectifier. (T. D. 486; March 14, 1902. ) 
 Blackberry wine — Special tax. 
 
 A manufacturer of blackberry wine can not lawfully sell it without paying 
 special tax under the internal-revenue laws, unless he shows that the wine 
 
25 
 
 Blackberry wine — Special tax — Continued. 
 
 was made by him from blackberries of his own growing, or from blackberries 
 gathered wild by himself or by persons in his employ. The exemption 
 granted by section 3246, Revised Statutes, to manufacturers of wine, does not 
 apply to manufacturers of wine from berries bought of others. (T. D. 717; 
 November 14, 1903. ) 
 
 Bonds. 
 
 Bonds of distillers: 
 A collector should require compliance with State law in regard to married 
 women tendering bonds as distillers. Before a married woman can execute a 
 bond which can be enforced "she must become a 'free trader' by a written 
 instrument signed by herself and husband, showing that she is authorized to 
 conduct business in her own name, and the execution of this instrument must 
 be proved before the clerk of the court of the county in which she resides, 
 and be registered in the office of the register of deeds." (T. D. 755; February 
 29, 1904.) 
 
 Bonds of manufacturers of oleomargarine: 
 Heretofore the oleomargarine manufacturers' bond and the process or renovated- 
 butter manufacturers' bond have been annual bonds, and were required to be 
 reexecuted on or before commencing business each fiscal year. The forms have 
 been revised, and are now made continuing bonds, and collectors are requested 
 not to use the old ones but to use the revised forms, namely, in the case of 
 oleomargarine manufacturers, Form 214, revised August, 1903, and in the case 
 of renovated butter manufacturers, Form 508, which is now being revised and 
 will be ready for use by the end of the present fiscal year. (T. D. 797; June 
 6, 1904. ) 
 
 Collector's vigilance: 
 Necessity for increased vigilance on the part of collectors to avoid the taking of 
 worthless bonds. Collectors are authorized to withhold approval from doubt- 
 ful bonds when presented. (T. D. 816; August 23, 1904.) 
 
 Obligors' export bonds: 
 The act of Congress approved April 28, 1904, provides for the cancellation of 
 bonds given to the United States upon the exportation to the Philippine 
 Islands of articles subject to internal-revenue tax, or with benefit of draw- 
 back, as if given for- and upon a shipment to a foreign country. (T. D. 789; 
 May 17, 1904.) 
 
 Bond of collector — Suit : 
 
 Decision of the United States circuit court of appeals in an action on the official 
 bond of Ambrose W. Lyman, collector, to recover the sum of 18,232.93 found 
 due the United States on settling his accounts. The objection to transcript 
 certified by the Acting Secretary of the Treasury not valid. The change in 
 the regulations subsequent to the execution of the bond, putting deputy col- 
 lectors in the classified civil service, did not relieve the sureties on the bond 
 from their liability. (T. D. 653; April 15, 1903. ) 
 
 Bonds of State officers : 
 
 The tax required on bonds before a person can enter upon the duties of a State 
 if not a tax on the functions of a State government. The United States 
 Supreme Court has held that the United States can not tax the salaries of 
 State officers, but it has never decided that it can not tax their bonds. (T. D. 
 20510; January 10, 1899.) 
 
 The bonds of notaries public are subject to a tax of 50 cents each. (T. D. 20547; 
 January 13, 1899.) 
 
26 
 
 Bonds— Stamp tax. (See also Decisions 19605, 19742, 19800, 20226.) 
 
 Bonds of municipal officers are subject to stamp tax under the act of June 13, 
 1898. (T. D. 19686; July 13, 1898.) 
 
 Bonds of brewers, manufacturers of tobacco, manufacturers of cigars, distillers' 
 annual, distillers' warehousing, transportation, and export bonds are required 
 by the act of June 13, 1898, to be stamped with a 50-cent stamp under Sched- 
 ule A, when individuals are security. When a guaranty company is surety 
 the bond should be stamped, in addition, with a stamp denoting one-half of 1 
 cent on each dollar or fractional part thereof paid by the principal obligor on 
 the bond as premium. Where these bonds are required by law or regulation 
 of this office to be made in duplicate or triplicate, each must be stamped. 
 (T. D. 19707; July 18, 1898.) 
 
 Distillers' transportation and warehousing bonds, and certain other bonds given 
 under internal-revenue laws, are not required to be stamped on and after July 
 1, 1901. (T. D. 384; July 22, 1901.) 
 
 In cases of bonds issued by guaranty companies in Canada, guaranteeing the 
 fidelity of employees of individuals or corporations in the United States, if 
 the bond is executed or delivered in Canada, the United States laws will not 
 apply, but if the bond be not valid until countersigned or delivered by the 
 agent of the company in the United States, it should be stamped in accordance 
 with the provisions of the act of June 13, 1898. (T. D. 19738; July 20, 1898.) 
 
 Renewals of bonds of fidelity companies issued prior to but not taking effect 
 until July 1, 1898, require to be stamped, notwithstanding the fact that they 
 were dated and delivered prior to that date. (T. D. 19845; August 9, 1898.) 
 
 The law does not provide for the transfer or assignment of bonds, but only for 
 the issuance of these instruments; and it is held that whenever a corporation 
 issues a bond and there accrues to the corporation a benefit or consideration 
 for the same, it is subject to taxation. (T. D. 20156; October 6, 1898.) 
 
 Warehousing bonds are subject to stamp tax under the tenth subdivision of 
 Schedule A of the act of June 13, 1898. (T. D. 19609; June 13, 1898.) 
 
 Bonds, tax: 
 Congress, in using practically the exact language of the act of July 1, 1862, in 
 imposing a stamp tax on bonds in the act of March 2, 1901, must be presumed 
 to have acted with full knowledge of the executive construction placed upon 
 such language in the former act. As showing that the executive construction 
 given to this part of the act of July 1, 1862, was in Barmony with the intention 
 of Congress, the act of June 30, 1864, which reenacted almost all the provisions! 
 of the act of July 1, 1862, with considerable enlargement as to the subjects and 
 rates of taxation, in reenacting the provision imposing stamp taxes on bonds, ■ 
 divided it into two clauses, so that the bonds of indemnity formed one item ) 
 and bonds for the due performance of the duties of an office formed another 
 item, the language used being almost the same, and in both cases the rate of 
 tax was increased. (T. D. 394; August 2, 1901.) 
 
 Bonds of distillers, brewers, and manufacturers: 
 Bonds, delivered on and after July 1, 1901, require no stamps in cases of distillers, ■ 
 brewers, manufacturers of tobacco, snuff, and cigars, or manufacturers of other 
 taxable articles, and peddlers of tobacco; bonds of producers of wine for 
 brandy used in the fortification of wine; all bonds for transportation and| 
 exportation of distilled spirits, or other taxable articles; bonds for withdrawal! 
 of alcohol for scientific purposes, and for withdrawal of distilled spirits by 
 manufacturers of cordials, etc. ; bonds for establishment of warehouses where 
 certain articles are to be manufactured for export, and bonds for establishment 
 
27 
 
 Bonds — Stamp tax — Continued. 
 
 Bonds of distillers, brewers, and manufacturers — Continued. 
 
 of special and general bonded warehouses. The official bonds of all internal- 
 revenue officers, including deputy collectors, require a 50-cent stamp. (T. D. 
 396; August 6, 1901.) 
 
 The bonds of administrators and executors require a 50-cent stamp, when deliv- 
 ered on and after July 1, 1901. (T. D. 377; July 9, 1901.) 
 
 The bonds of administrators and executors become liable to stamp tax under the 
 second clause of paragraph 7, Schedule A, war-revenue law, as amended by 
 the act of March 2, 1901, because such bonds are for the due performance of 
 the duties of an office or position and to account for money received by virtue 
 thereof, and because the exemption of such bonds was omitted in the amend- 
 ment of the war-revenue act. No authority can be found classifying admin- 
 istrators and executors as State officers. (T. D. 414; September 27, 1901.) 
 
 Official bonds of State, county, and municipal officers are exempt from stamp 
 tax. (T. D. 304; March 21, 1901.) 
 Bonds of administrators, executors, guardians, and receivers: 
 
 Construing paragraph 7 of Schedule A, act of June 13, 1898, as amended by the act 
 of March 2, 1901, it is held that the bondsof administrators, executors, guardians, 
 receivers, and of other fiduciaries, appointed by State courts, become liable 
 to tax under clause 2 of this paragraph, because such bonds are for the due 
 performance of the duties of an office or position, such as accounting for money 
 received by virtue thereof, and because the exemption that was made in 
 Schedule A of the war-revenue act of bonds required in legal proceedings was 
 omitted in the act as amended. (T. D. 432; November 7, 1901.) 
 Ruling as to executors, administrators, guardians, and receivers: 
 
 Although the opposite view was given in the early circulars of the Bureau, it is 
 no longer the ruling of the Office that bonds made by executors, administra- 
 tors, guardians, and receivers, appointed by the courts, in pursuance of legal 
 proceedings, are taxable under Schedule A, war-revenue law. This ruling is 
 based upon an opinion of the Attorney-General. (See Commissioner's Report, 
 1898, p. 113.) (T. D. 20756; March 1, 1899.) 
 
 The bonds of contractors for public works are required to be taxed, under 
 Schedule A, act of June 13, 1898, as amended by act of March 2, 1901. (T. D. 
 356; June 5, 1901.) 
 Bonds of notaries, etc. : 
 
 The bonds of notaries public and of other State officers, made as a condition to 
 the exercise of their official duties, are declared by the United States circuit 
 court of appeals, sixth circuit, southern district of Ohio, to be exempt from 
 stamp tax under Schedule A, act of June 13, 1898, said bonds being held to be 
 "required in legal proceedings" as a prerequisite to the exercise of an official 
 function created by the State. See decision of court in the case of Bernard 
 Bettman, Collector, v. Walter W. Warwick, rendered March 5, 1901. (T. D. 
 314; March 28, 1901.) 
 
 The Attorney-General, in opinion delivered February 25, 1899, holds that bonds 
 given by private individuals, secured by mortgages, are taxable as bonds of 
 any description not otherwise provided for, and not as promissory notes. 
 (T. D. 20788; March 2, 1899.) 
 
 Bonds of private persons: 
 A bond executed by a private person, having a mortgage as security, is taxable 
 at the rate of 50 cents; there is, however, no tax accruing on a mortgage, if 
 the sum secured does not exceed $1,000. Where a mortgage and bond are 
 
28 
 
 Bonds — Stamp tax — Continued. 
 Bonds of private persons — Continued. 
 
 given by a private person for a sum not exceeding $1,500, the. greater tax will 
 accrue on the bond and the same should be stamped. (T. D. 20796; March 
 7, 1899.) 
 
 Bonds given under section 3297, Eevised Statutes, by officers of State institutions, 
 for alcohol to be used for scientific purposes, are not subject to stamp tax under 
 the act of June 13, 1898. (T. D. 20876; March 16, 1899.) 
 
 Treasury decision 19707, July 18, 1898, is modified by opinion of the Attorney 
 General, who holds that bonds of brewers, manufacturers of tobacco, manu- 
 facturers of cigars, distillers' annual, distillers' warehousing, transportation, 
 and export bonds, are required to be stamped under the provisions of the act of 
 June 13, 1898, with a 50-cent stamp, and when a guaranty company is surety 
 an additional stamp is required denoting one-half of 1 per cent on the pre- 
 mium charged. Where these bonds are required by law or regulation of this 
 office to be made in duplicate or triplicate, only the original is required to be 
 stamped. (T. D. 21312; June 21, 1899.) 
 
 Bonds under act of March' 2, 1901: 
 
 The bonds of administrators and executors, which were formerly held to be 
 exempt as bonds required in legal proceedings, are required to be stamped on 
 and after July 1, 1901, in consequence of the omission of the exemption here- 
 tofore accorded to such bonds, in the war-revenue law as amended by the act 
 of March 2, 1901 ; and, likewise, the bonds of guardians, receivers, or trustees, 
 appointed by court, are taxable on and after July 1, 1901. (T. D. 378; July 
 10, 1901.) 
 Guaranty bonds: 
 
 Commissioner's ruling August 18, 1898, to the effect that a guaranty, accompany- 
 ing a proposal blank, does not require a stamp is reversed by ruling dated 
 June 20, 1899, to the effect that a guaranty proposal is, in meaning and effect, 
 a bond and taxable as such at the rate of 50 cents and an additional tax of one- 
 half of 1 per cent on premium charged, if a fidelity, guaranty, or surety com- 
 pany becomes guarantor or surety on such instrument. (T. D. 21609; Septem- 
 ber 18, 1899.) 
 Guaranty companies as sureties: 
 
 Where fidelity or guaranty companies become sureties on bonds, a tax is due and 
 payable whenever the premiums are paid. When a premium is paid subse- 
 quent to the one on the first issue of a continuing bond, a receipt must be 
 issued by the company, a stamp put thereon, and the receipt filed with origi- 
 nal bond. A tax stamp of 50 cents accrues on each renewal of a bond or 
 agreement, in addition to the stamp tax on premiums. (T. D. 21666; October 
 14, 1899. ) 
 
 Showing the relationship to the law of those engaged in the business of fidelity 
 and guaranty insurance, and the tax accruing on the instruments evidencing 
 said insuranceship, and the renewals of said instruments, and the tax accru- 
 ing when a bond of indemnity is given by a principal and guaranteed by a 
 surety company, and on the renewals of the same. (T. D. 15; January 11, 
 1900.) 
 
 Under the laws of the State of Illinois and the ordinances of the city of Chicago, 
 it is necessary for a party making application for license as saloon keeper to 
 file a bond with the city collector. The case of United States v. Ambrosini 
 involves the question as to whether the Government can require such bonds 
 to be stamped under the war-revenue act of 1898. Decision in favor of the 
 Government. (T. D. 40; February 10, 1900.) 
 
29 
 
 Bonds — Stamp tax — Continued. 
 
 Bond for saloon keeper's license: r 
 
 Where the question arises as to whether trft Government can require bonds given 
 by a party making application for license as a saloon keeper to be stamped, it 
 is held that all such bonds shall be stamped by the principal at the rate of 50 
 cents each, and if, in any case, the security be given by a fidelity or guaranty 
 company, additional stamps are required at the rate of one-half of 1 per cent 
 on each dollar of premium. (T. D. 72; March 15, 1900.) 
 Administrators' and executors' bonds: 
 
 Sections 14 and 15, act of June 13, 1898, declare instruments invalid for the lack 
 of a stamp, and also make it unlawful for a recording officer to record an instru- 
 ment to which a proper stamp has not been affixed and canceled, and a case 
 is pending in the United States circuit court of Ehode Island involving the 
 question whether the bonds of administrators and executors are liable to 
 stamp tax. (T. D. 481; March 8, 1902.) 
 
 The giving of an additional bond by storekeepers, gaugers, and storekeeper- 
 gaugers does not modify or release the original bond given at the time of 
 qualification. Bonds may not be renewed at the will of the principal or the 
 surety, but only by the direction of the Commissioner. (T. D. 548; July 11, 
 1902. ) 
 
 Under the laws of the State of Illinois and the ordinances of the city of Chicago, 
 it is necessary for a party making application for license as saloon keeper to 
 file a bond with the city collector. The case of Peter Ambrosini, plaintiff in 
 error, v. United States involved the question as to whether the Government 
 can require such bonds to be stamped under the war-revenue act of 1898. The 
 Supreme Court decided they are not taxable within the statute. (T. 1). 593; 
 October 25, 1902. ) 
 Bonds of internal-revenue officers: 
 
 By the terms of Schedule A, act of June 13, 1898, it is provided that all bonds 
 given by officers of internal revenue to the United States for the faithful dis- 
 charge of duty, as disbursing agents, for indemnifying the Government, or for 
 any other purpose whatsoever, must have attached thereto a 50-cent docu- 
 mentary stamp. This stamp will be affixed by the principal, and canceled by 
 writing or imprinting thereon his initials and the date when affixed. (T. "D. 
 19690; July 13, 1898. ) 
 
 Bonds, cancellation. 
 
 No legal provision has been made for the cancellation of the bonds of brewers 
 and manufacturers of tobacco and cigars who have gone out of business. The 
 bonds are to be kept on file in the collector's office, and should any default be 
 hereafter found they are held liable. (T. D. 648; April 4, 1903. ) 
 
 The Commissioner holds that, under the Dockery Act (28 Stats., 807), he must 
 cause all bonds given by storekeeper-gaugers to be renewed every four years, 
 and as much oftener as he may deem a renewal necessary; and that when a 
 new bond is required and filed by a storekeeper-gauger and accepted the lia- 
 bility of sureties on the former bond as to the future acts of the principal 
 ceases. (T. D. 697; September 15, 1903. ) 
 
 Bonded spirits. 
 Leakage allowance and regauging: 
 Under the provisions of section 50, act of August 28, 1894, and the amendatory 
 act of January 13, 1903, applications for regauging spirits in bonded ware- 
 houses and for leakage allowances will in no case be approved unless filed 
 within the time limited by the statute, at least fifteen days before the expira- 
 
30 
 
 Bonded spirits — Continued. 
 
 Leakage allowed and regauging — Continued. 
 
 tion of the seven years from the date of the original gauge of the oldest spirits 
 produced during a given month, or upon special request of the distiller. (T. D. 
 687; July 30, 1903.) 
 Bonded distilled spirits' account: 
 Instructions are given in internal-revenue circular 659 to the effect that store- 
 keepers' returns on Forms 87 for the month of July, 1904, and subsequent 
 months, will not be recorded in Book 15, but will be filed in a special binder 
 or pamphlet cover for Forms 87 (sample herewith), one cover being devoted 
 to all the reports on Form 87 for a given month, arranged according to the 
 number of distillery warehouses from the lowest to the highest, from which 
 reports all of the details, the totals of which appear in Column A or Short 
 Entry A, on lines 7, 10, 10J, 11, 12, 13 (A), 134, 17 (A), 20 (A), 24 (A), 26 (A), 
 and 33 of page 1 of the bonded account, Form 94a, part 1, will be directly 
 transcribed. (T. D. 793; May 31, 1904.) 
 Bonds of administrators and executors. 
 
 Assessments of tax are not to be made on bonds of administrators and executors 
 in cases where the stamps can now be affixed. A case is pending in the 
 United States circuit court in the district of Rhode Island, involving the ques- 
 tion whether bonds, on which the money has been paid for the tax, require 
 stamps. (T. D. 481; March 8, 1902.) 
 Cigar manufacturer's bond. 
 
 Sureties on cigar manufacturer's old bond are released upon date of execution 
 and approval of new bond, and are chargeable with delinquencies occurring 
 only to the date of approval of new bond, when responsibility on the latter 
 commences. (T. D. 740; January 9, 1904.) 
 Continuing- manufacturer's bond. 
 
 A bond given for continuance of the business of manufacturing cigars by a minor 
 son of a deceased cigar manufacturer may be accepted by a collector if the fact 
 of the minority of the principal is clearly stated in the body of the bond and 
 the sureties are good and sufficient. When an administrator of the estate of 
 the deceased cigar manufacturer is appointed a new bond is required. (T. D. 
 792; May 26, 1904.) 
 Brewers' bonds. 
 
 A second bond filed by a brewer during the four-year period is merely cumula- 
 tive and does not release the first bond. (T. D. 834; October 15, 1904.) 
 Consent of sureties to removal. 
 
 In consenting by sureties to the removal of a cigar or tobacco manufacturer the 
 signing of Form 542 and its proper execution by the sureties considered suffi-' 
 cient. — The signature of the principal, as required by Regulations No. 8 
 (p. 63), is not deemed necessary. (T. D. 820; August 30, 1904.) 
 Bonded warehouse. 
 Supplemental regulations: 
 Department circular No. 104 sets forth supplemental regulations concerning 
 withdrawal of distilled spirits from bonded warehouse for use of the United 
 States, free of tax, under provisions of section 3464, Revised Statutes. (T. D. 
 848; December 23, 1904. ) 
 
 Boron preservatives. 
 
 Where boron preservatives, or similar preservatives, are used in butter for the 
 purpose of preservation only, and the extremely small quantity of preserva- 
 tive used indicating beyond question that fact, its sole use being for the pur- 
 
31 
 
 Boron preservatives— Continued. 
 
 pose and with the effect of preventing or postponing usual and natural changes 
 in butter, it is held that the product will not be liable or subject to tax as 
 adulterated butter. (T. D. 580; September 16, 1902.) 
 
 Bottles refilled with distilled spirits. 
 
 Collectors are instructed, by oircular No. 647 that, while under section 6, act of 
 March 3, 1897, the reuse of a bottle for containing spirits which had once been 
 filled and stamped without destroying the stamp previously affixed may not 
 result in fraud upon the Government, it involves a violation of law and enables 
 the offender to impose upon the public. Such an offender should be reported 
 for prosecution. (T. D. 696; September 19, 1903.) 
 
 Bottling warehouses. 
 
 On further examination of the bottling act of March 3, 1897, it is held that the 
 use of the same bottling warehouse by different distillers having spirits on the 
 same distillery premises would not be contrary to the purpose of said act; and 
 that such use may be permitted, in the discretion of the Commissioner of 
 Internal Revenue, under such regulations as he, with the approval of the 
 Secretary ot the Treasury, may prescribe. (T. D. 531; June 4, 1902.) 
 
 Bottling warehouse for different distillers: 
 
 Treasury Decision 531, made June 4, 1902, as to the use of the same bottling 
 warehouse by different distillers, is so modified as to read thus, viz: In case 
 there has been a change or changes in the persons operating a distillery, and 
 different distillers have spirits stored in different warehouses on the same dis- 
 tillery premises, each of such distillers who desire to bottle spirits of his own 
 production may provide a warehouse of his own for that purpose; or if a bot- 
 tling warehouse has already been set apart and approved for one of such dis- 
 tillers it may be used by either of the other distillers having spirits stored on 
 the same distillery premises, upon obtaining and filing with the collector the 
 written consent of the principals and sureties on the distillers' and warehous- 
 ing bonds of the distiller having spirits stored in the warehouse of which the 
 bottling warehouse forms a part, that such warehouse may be occupied and 
 used by the applicant, naming him, for bottling spirits in bond. (T. D. 555; 
 July 18, 1902.) 
 
 Recovery of spirits from empty packages: 
 The practice of placing hot water in packages after emptying spirits therefrom, 
 and allowing it to remain long enough to recover at least a portion of the 
 spirits which have been allowed as soakage, and upon which tax has not been 
 paid, is condemned and prohibited. All officers of internal revenue are 
 instructed to see that the order against it is enforced. (See Circular 662.) 
 (T. D. 818; August 24, 1904.) 
 
 Bottling 1 whisky in bond. 
 
 No spirits can be withdrawn for bottling under the bottling-in-bond act until the 
 period during which a request for regauge of such spirits can be made has 
 expired. Spirits bottled in bond may be reduced by addition of pure water 
 only to not less than 100 per cent proof for domestic use, or to not less than 
 80 per cent proof for export purposes. (T. I). 796; June 4, 1904.) 
 
 Bowling alleys — Special tax. (See also Billiards, etc. ) 
 
 A table called a " 10-pin bowling alley," 12 or 16 feet long, 21 inches high, and 
 23 inches wide, on which bowls are thrown, when set up in any place and 
 "open to the public with or without price," is held to be a bowling alley, for 
 which special tax must be paid. (T. D. 261; January 2, 1901.) 
 
32 
 
 Bowling alleys — Special tax — Continued. 
 
 Bowling alleys, used only one day in each year, upon the occasion of annual 
 Sunday school picnics, the proceeds being applied to church and Sunday school 
 purposes, are not "open to the public" within the meaning of the law, and 
 are not subject to payment of a special tax. (T. D. 19890; August 13, 1898.) 
 
 Bowling alleys at a college, used exclusively by students and occasionally by 
 some invited friends are not subject to special tax under section 2, act of June 
 13, 1898. (T. D. 20021; September 7, 1898.) 
 
 In every building or place where bowls are thrown each division or track is a 
 separate alley, for which the special tax of $5 must be paid. (T. D. 21606; 
 September 14, 1899.) 
 
 Separate special-tax stamp is required for each bowling alley, pool, or billiard 
 table. One stamp can not be made to answer for several tables, even though 
 they are contained in a single room and operated by only one person or firm. 
 (T. D. 19610; June 30, 1898.) 
 
 Special-tax stamp, taken out by a person for a pool table, can not, upon his dis- 
 mantling the pool table, be made to answer for a bowling alley. (T. D. 20313; 
 November 1, 1898.) 
 
 The ninth paragraph of section 2 of the act of June 13, 1898, imposing special tax 
 on proprietors of bowling alleys, requires the special tax to be paid for " each 
 alley;" and it is held that where there are distinct and separate tracks on 
 which separate games of bowling can be played at the same time each of these 
 is a separate alley, for which the special tax of $5 must be paid. (T. D. 20263; 
 October 28, 1898.1 
 
 Where a person who has taken out a special-tax stamp for a bowling-alley closes 
 this alley and thereafter opens another to the public, the stamp may be trans- 
 ferred to the latter bowling alley under the provisions of section 3241, Bevised 
 Statutes, if it remains in his ownership and control. (T. D. 21495; August 11, 
 1899. ) 
 Brandy, fruit— Assessment regulations. 
 Assessment and collection of tax — 
 
 Circular No. 44 (Int. Rev. No. 657) is issued to set forth certain regulations 
 governing assessment and collection of tax on fruit brandy produced and not 
 removed for fortification of pure sweet wine or deposit in special bonded ware- 
 houses under act of March 3, 1877, as extended by act of October 18, 1888. 
 (T. D. 782; April 26, 1904.) 
 lime for assessing tax — 
 
 Referring to Internal Revenue Circular 657 and to section 2, act of March 3, 1877, 
 as to the time therein prescribed for reporting the tax on brandy produced and 
 remaining on distiller's premises, it is noted that the tax in such cases is not 
 to be assessed during the month in which the spirits are produced, but on the 
 list for the next succeeding month, which list would in ordinary cases be com- 
 pleted and returned to the collector some time during the following month, 
 thereby giving the distiller from sixty to ninety days (according to the date of 
 production) in which to tax pay his brandy. (T. D. 835; October 22, 1905.) 
 Branding packages. 
 
 Caution-notice labels and branding of cigars — 
 
 Caution-notice labels with the name of a dealer printed on the upper half of the 
 label, the name of the manufacturer being omitted, are contrary to the regu- 
 lations. Boxes not made from wood must be submitted to the Commissioner 
 for approval, and all cigar boxes must bear the brand showing the number of 
 the factory, district, and State, and the number of cigars contained therein in 
 addition to the factory number, district, and State shown on the caution 
 notice. (T. D. 794; May 31, 1904.) 
 
33 
 
 Branding packages— Continued. 
 
 Packing, stamping, branding, and labeling small cigars and cigarettes — 
 
 Each statutory package of little cigars or cigarettes (10s, 20s, 50s, or 100s) must 
 be stamped, branded, and labeled; provided, however, that such stamped 
 packages may be packed in cartons containing 200, 250, or 500 small cigars or 
 cigarettes with the factory brand and caution notice omitted from the inner 
 packages and placed on the carton.— Cartons containing statutory packages 
 fully stamped, branded, and labeled need not have the factory brand or cau- 
 tion-notice placed thereon, the inner packages being complete in themselves. — 
 Stamps must be so affixed to the packages that the contents can not be 
 removed without breaking the stamp, and when stamps of the denominations 
 10s and 20s are not so affixed as to seal the package, the manufacturer will 
 write or imprint thereon his registered number, district, and State, and the 
 date of use, to include the month and year. (T. D. 825; September 6, 1904.) 
 Brewers' packages. 
 
 Instructions are given by the Commissioner to a collector of internal revenue 
 with reference to the most satisfactory way of so curing defects in brewers' 
 packages as to put them in legal condition, in cases where the packages con- 
 tain more spigot holesthan are allowed by law. (T. D. 751; February 16, 1904. ) 
 Branding rectifiers' packages — 
 
 The ruling stated in Treasury decision 566, dated August 13, 1902, prohibiting 
 the use of spiral brands on wholesale liquor dealers' packages of spirits, 
 extended to rectifier's packages. (T. D. 721; November 24, 1903.) 
 Brewery receiver — Special tax. 
 
 A receiver, appointed by order of court to take charge of and continue the busi- 
 ness of a brewery company that has paid the special tax, is not required to pay 
 another special tax therefor, but may conduct the business under the special- 
 tax stamp of such company. (T. D. 465; January 30, 1902.) 
 Brokers — Special tax. (See also Decisions, tax on brokers' contracts, Nos. 116-191. ) 
 
 A person who makes it his business to buy securities, even for himself only, 
 without selling them, is a broker in contemplation of the statute, and required 
 to pay special tax accordingly. (T. D. 156; June, 13, 1900.) 
 
 A broker's special tax is not required to be paid for the purchase nor for the sale 
 of tax titles. (T. D. 145; June 4, 1900. ) 
 
 A single instance of the purchase or sale of securities (or occasional instances of 
 such transactions) is not sufficient to constitute the business of a broker, in 
 contemplation of the statute, and special tax is not required to be paid there- 
 for. — Public warrants, even though transferred before payment, do not require 
 a stamp under the internal-revenue laws. (T. D. 70; March 14, 1900.) 
 
 A person who is engaged in the business of selling either domestic or foreign 
 exchange to his customers is required to pay special tax as a broker. (T. T>. 
 20593; January 19, 1899.) 
 
 Brokerage is not the business of the express companies; they are carriers, and 
 the issuing of money orders and travelers' checks is a mere incident to the 
 business of carriers, the companies for a consideration issuing their own orders, 
 upon themselves, for the payment of money upon presentation to their author- 
 ized agents. They are not liable on this account for special tax as brokers 
 under the second paragraph of section 2, act of June 13, 1898. (T. D. 128; 
 May 14, 1900.) 
 
 Mileage books are not "securities" within the meaning of paragraph 2, section 2, 
 act of June 13, 1898, defining brokers, and special tax of a broker is not required 
 to be paid for their purchase and sale. (T. D. 112; April 25, 1900.) 
 
 31331—05 3 
 
34 
 
 Brokers— Special tax — Continued. 
 
 Warehousemen who sell leaf tohacco on commission are required to pay special 
 tax as leaf-tobacco dealers; and if they neither acquire possession of, nor right 
 or title to, leaf tobacco which they sell on commission as agents for others, 
 they must also pay special tax as commercial brokers. (T. D. 20603; January 
 23, 1899.) 
 
 Where an officer of a bank holds a membership in a stock exchange as agent for 
 his bank, and the business done by him on the stock board is the bank's busi- 
 ness, neither he nor his bank is required to pay special tax therefor as a broker, 
 the bank being exempt therefrom by the express provision of the statute 
 denning brokers. (T. D. 12; January' 8, 1900. ) 
 
 Persons who receive money from those who wish to send remittances to foreign 
 countries and procure for them bills of exchange, if they receive a commission 
 on the exchange thus purchased, are brokers under the second paragraph of 
 section 2 of the war-revenue act and must pay special tax accordingly. (T. D. 
 20594; January 19, 1899. ) 
 
 The purchase and sale of rare coins is not held to be the business of a broker as 
 denned by the statute. (T. D. 150; June 6, 1900.) 
 Broker's branch office equipments: 
 
 A person whose business it is, upon orders from his customers, on commission, 
 to negotiate purchases or sales of wheat or other merchandise and purchases 
 or sales of stocks, bonds, etc., even though he makes such purchases of sales 
 in his own name only, not disclosing the names of his customers, is required 
 to pay special taxe? as a broker and commercial broker. (T. D. 174; July 6, 
 1900.) 
 
 Persons whose business it is to buy or sell grain (or other merchandise) on com- 
 mission on orders received from customers are commercial brokers and required 
 to pay special tax as such, even when they negotiate such purchases or sales 
 in their own names only (the grain or merchandise not being received into 
 their actual possession). (T. D. 180; July 18, 1900.) 
 
 (See also Commercial brokers; and Decisions 19701, 19742.) 
 
 Special tax is required to be paid for every broker's branch office at which all 
 equipments for business are kept, together with memorandum pads of transac- 
 tions, ticker recording sales and purchases of stock exchange, and blackboard 
 indicating value of stocks. (T. D. 20604; January 23, 1899.) 
 Broker denned: 
 
 In the general meaning of the word, the term "broker" implies a person acting 
 for others in the buying and selling of commercial paper, stocks, etc., but the 
 terms of paragraph 2, section 2, act of June 13, 1898, define a broker as every 
 person whose business it is to negotiate purchases or sales of "stocks for them- 
 selves," as well as for others. Such a person is subject to special tax. (T. D. 
 20549; January 16, 1899.) 
 Delinquent tax sales: 
 
 The buying of real estate at delinquent tax sales is not the business of either a 
 broker or a commercial broker as defined by the statute. (T. D. 20542; Jan- 
 uary 11, 1899.) 
 
 The business of loaning money on real estate, taking the note of the borrower 
 and mortgagee, does not involve the lender in special-tax liability either as a 
 banker or broker under the war-revenue act. (T. D. 50544; January 11, 1899. ) 
 Mining stock brokers: 
 
 Mining stock brokers, doing a purely speculative business in mining stocks, are 
 subject to the tax of $50; section 2, act of June 13, 1898. Mining companies I 
 are required to affix and cancel a 5-cent stamp to every certificate of stock 
 
35 
 
 Brokers — Special tax — Continued. 
 Mining stock brokers — Continued. 
 
 originally issued on or after July 1, 1898, and every transfer of a certificate of 
 stock must bear the requisite stamp required by Schedule A of said, act. (T. D. 
 19562; June 23, 1898.) 
 Section 2, act of June 13, 1898: 
 
 Neither a mortgage for a less amount than $1,000, nor a deed for property of less 
 actual value than $100, nor a receipt issued by a savings bank, but containing 
 no words constituting an order for the payment of money, is liable to a special 
 tax. But persons or firms engaged in buying and selling notes for themselves 
 are liable as brokers for the special tax of $50, under paragraph 2, section 2, 
 act of June 13, 1898. (T. D. 19755; June 23, 1898.) 
 Broker under -war revenue tax: 
 
 A person who does not have a place of business where credits are opened by the 
 deposit or collection of money or currency, subject to be paid or remitted upon 
 draft, check, or order, or where stocks, bonds, bullion, bills of exchange, or 
 promissory notes are received for discount or sale, is not subject to special 
 tax as a banker, unless the money which he lends is loaned on the collateral 
 security of stocks, bonds, bullion, bills of exchange, or promissory notes. (See 
 the decision of the Supreme Court in Selden v. The Equitable Trust Company, 
 94 U. S., 704. ) (T. D. 19894; August 16, 1898. ) 
 
 A broker's agent, having a place of business where he receives and transmits to 
 his principal orders for the purchase or carrying of stock, and where he receives 
 and disburses the money due customers, is required to pay special tax as a 
 broker and take out and post up the requisite stamp. (T. D. 19881; August 
 10, 1898.) 
 
 A party is involved in liability as broker whose business it is to sell stocks and 
 bonds for clients, also city scrip and county warrants on commission, or for a 
 fee. (T. D. 20157; .October 7, 1898.) 
 
 Certain "privileges" issued by a broker, in stock transactions, and designated, 
 respectively, as "puts," "calls," and "spreads," are liable to stamp tax at 
 date of issue, under paragraph 1, Schedule A, act of June 13, 1898. (T. D. 
 20093; September 24, 1898.) 
 
 1. Neither a real estate agent nor any person or firm is subject to special tax for 
 simply buying or selling real estate on commission for either himself or others. 
 
 2. A man is a broker under the act of June 13, 1898, who negotiates purchases 
 or sales of stocks, bonds, notes, etc., in the course of business, and this applies 
 to real estate agents, insurance agents, attorneys, or any persons or firms who, 
 in connection with their profession or occupation, make it a regular part of 
 their business to negotiate purchases of stocks, bonds, notes, etc., either for 
 themselves or others. (T. D. 19755; July 23, 1898. ) 
 
 Persons whose practice it is to buy notes for themselves and for others (even 
 though this is in addition to their regular business) are required to pay special 
 tax as a broker. (T. D. 19757; July 25, 1898.) 
 
 Persons whose business it is to negotiate purchases or sales of stocks or other 
 securities, and are also brokers in grain and produce, are required to pay 
 special tax both as brokers and as commercial brokers. (T. D. 19870; August 
 9, 1898. ) 
 
 The business of selling land on commission, taking applications for farm loans, 
 and writing insurance is not the business of a broker as defined by the statute. 
 Special tax is not required to be paid therefor. (T. D. 19872; August 10, 1898. ) 
 
 The purchase of State, county, school, or district orders or warrants by any per- 
 son does not subject him to special tax as a broker if this is not done by him- 
 to the extent of constituting it his business. (T. D. 19885; August 11, 1898. ) 
 
36 
 
 Broker under war revenue tax — Continued. 
 Tax payable for entire year: 
 
 A person who, in the month of July, engages in any business for which special 
 tax is required to be paid, must pay the tax for the entire year, beginning 
 July 1, and if thereafter he takes in a partner, the firm thus created must also 
 pay special tax, reckoned from the first day of the month in which it began 
 the business to the 1st day of July following, and take out a stamp in the firm 
 name, without any rebate or allowance on account of the tax paid by the per- 
 son in question for the business carried on by him individually prior to the 
 creation of the firm. (T. D. 20160; October 10, 1898. ) 
 
 Money orders by Italian brokers in New York and other American cities for 
 transmission abroad are subject to tax under the act of June 13, 1898. (T. D. 
 20163; October 11, 1898.) 
 
 Tax applied to any "established place" of business : 
 Special tax upon sales of any product or merchandise, imposed by the act of 
 
 ' June 13, 1898, applies, in addition to operations at all exchanges or boards of 
 trade, under the comprehensive words "or other similar place," to operations 
 at any established place where business interests meet to conduct such opera- 
 tions, without regard to location or designation, whether under the name of 
 "bucket shop," or other name. (T. D. 20274; November 2, 1898.) 
 
 Branch offices of brokers : 
 A person who is engaged in the business of buying promissory notes for himself 
 and clients, although this is only a branch of the business in which he is 
 engaged, is required to pay special tax as a broker. (T. D. 20028; September 
 8, 1898.) 
 Special tax must be paid for every branch office established by a broker in the 
 legitimate brokerage business, where the employee in charge of such branch 
 office not only receives and transmits orders with the money to the main office, 
 but also receives from the main office moneys for disbursement to customers, 
 or keeps accounts with the customers at the branch office, or does other busi- 
 ness with relation to the transactions of brokers at such branch office. Sepa- 
 rate special tax must be paid and a separate stamp taken out for every ' ' bucket 
 shop," whether such office is called a branch office or a main office. (T. D. 
 20374; November 24, 1898.) 
 
 Broker's sales of stock : 
 A person who carries on the business of a broker, both in stocks and other 
 securities, and in grain, merchandise, or produce, is required to pay the special 
 tax of $50 as a broker and special tax of $20 as a commercial broker. Collect- 
 ors should ascertain and report for assessment all such cases in their districts, 
 where both special-tax stamps are not held by these brokers. (T. D. 20167; 
 October 11, 1898.) 
 
 1. No tax accrues under the paragraph, Schedule A, headed "Contract," on the 
 sales of stocks, inasmuch as such sales are otherwise provided for in the act of 
 June 13, 1898. 
 
 2. Where Form B is used only as a notice of purchase or sale of stock, no other 
 paper having been issued or stamped in connection with the transaction, and 
 regardless of the class of brokers using the same, it is liable to stamp duty at 
 the rate of 2 cents on each $100 of face value or fraction thereof as a memo- 
 randum of sale of stock. 
 
 3. When Form C is used only in stock transactions, irrespective of the class of 
 brokers using the same, it is taxable at the rate of 2 cents for each hundred 
 dollars of face value or fractional part thereof as an agreement for the future 
 transfer of stock. (T. D. 20091; September 22, 1898.) 
 
37 
 
 Broker under war revenue tax — Continued. 
 Broker's sales of stock — Continued. 
 
 Special-tax stamps must be taken out by persons who make a business of nego- 
 tiating the purchase and the sale of life-insurance contracts, such persons being 
 classed as brokers. (T. D. 20235; October 22, 1898.) 
 
 The business of negotiating loans, the borrowers paying a commission to the 
 persons securing the loans, drawing papers, examining titles, etc., is not the 
 business of a broker as defined by paragraph 2, section 2, of the act of June 13, 
 1898. (T. D. 20262; October 27, 1898.) 
 
 The indorsement of notes for discount at some bank is not sufficient to involve 
 the indorser in special-tax liability within the definition of a broker as con- 
 tained in paragraph 2, section 2, of the act of June 13, 1898. (T. D. 20269; 
 October 31, 1898. ) 
 
 While a mining syndicate, or other association, issuing certificates of stock in a 
 company organized by it is not required to pay special tax as a broker therefor, 
 amanager or other person employed by it to sell such certificates on commission 
 is a broker within the meaning of the second paragraph of section 2 of the act 
 of June 13, 1898, and is required to pay special tax accordingly. (T. D. 20637; 
 January 26, 1899.) 
 Negotiating agents, as brokers : 
 
 A company or corporation, which merely disposes of its own stock and bonds for the 
 purpose of obtaining money to conduct the business for which it was organized, 
 is not required to pay special tax therefor as a broker under the second para- 
 graph of section 2 of the war-revenue act. But if it employs an officer or agent, 
 whose business it is to negotiate these sales for a commission orpremium thereen, 
 such person must pay special tax as a broker. (T. D. 20640; January 26, 1899. ) 
 Receipts for money and letters of advice : 
 
 A broker's receipt for money from a customer, who retains the receipt while the 
 broker forwards the money with a letter of advice as to the disposal thereof, 
 is not liable to tax. If, however, the broker sends a letter of instruction or 
 of advice as to the payment of money, unaccompanied by check, draft, or other 
 order for the payment of money, said letter would be liable to a 2-cent stamp 
 tax, which must be affixed thereto. If the broker deals directly with foreign 
 correspondents, a letter of advice, if unaccompanied by a remittance, should 
 bear stamps at the rate of 4 cents per $100, or fraction thereof. (T. D. 20650; 
 January 31, 1899.) 
 
 Persons whose business it is, as agents for others, to negotiate sales of mortgages 
 on commission are required to pay a special tax as brokers. (T. D. 20676; 
 February 4, 1899.) 
 Steamship agents as brokers : 
 
 Negotiation of sales of exchange, including foreign drafts as well as domestic, is 
 the business of a broker, as defined by the statute. — Express companies engaged 
 in the business of selling exchange are required to pay special tax as brokers. 
 (T. D. 20785; March 1, 1899.) 
 
 Opinion of the Attorney-General relative to taxation of instruments used by 
 stockbrokers and known as "puts" and "calls." "Spreads" held to be tax- 
 able under same opinion. Modification of ruling 20093, rendered by the 
 Commissioner's office September 24, 1898. (T. D. 21151; May 12, 1899.) 
 
 Steamship agents, who make it their business, or any material part thereof, to 
 sell drafts or bills of exchange on commission, are required to pay special tax 
 as brokers, under paragraph 2, act of June 13, 1898, requiring persons, 
 "whose business it is" to negotiate sales of "exchange," to be regarded as 
 brokers. (T. D. 20717; February 14, 1899.) 
 
38 
 
 Broker under war revenue tax — Continued. 
 Bucket-shop brokerage: 
 
 A bucket shop is a place other than a board of trade or exchange where parties 
 who agree to buy and sell stocks do not ordinarily contemplate either receiv- 
 ing or delivering certificates therefor by buyer or seller either at the time or 
 in the future. Such transactions are taxable at the rate of 2-cent stamp for 
 each $100 par value. Treasury ruling 20274 is revoked wherein it was held 
 that a bucket shop, as ordinarily conducted, is a "similar place" to a board 
 of trade or exchange. (T. D. 21279; June 16, 1899.) 
 
 A person must pay special tax as broker if he holds himself ih readiness to make 
 purchases and sales of securities mentioned in paragraph 2, section 2, of the 
 war-revenue act, and is known to the public as engaged in such business, even 
 though the amount of business done is small. (T. D. 20873; March 15, 1899.) 
 
 Agents of steamship companies (as well as other persons) who hold themselves in 
 readiness to sell foreign exchange, and are so known to the public, are required 
 to pay special tax as brokers. (T. D. 21075; April 28, 1899.) 
 
 An express company engaged in the business of buying or selling foreign money 
 or bills of exchange is required to pay special tax as a broker. (T. D. 21709; 
 October 31, 1899.) 
 Broker's special tax: 
 
 Broker's special tax is not required to be paid by a person because of the fact of 
 his holdinga seat in the stock exchange if he transacts no business as a broker, 
 either directly or indirectly. (T. D. 19885; August 24, 1898.) 
 
 Loan and mortgage companies are not liable for special tax as brokers unless 
 they engage in the sale of the securities on which they make loans. When 
 they engage in such sales they become brokers, and are required to pay special 
 tax accordingly. (T. D. 21620; September 22, 1899.) 
 
 No tax accrues on the closing of a stock transaction wherein the margin on stock 
 is exhausted because of the market going against the speculator and there is 
 no further agreement to either buy or sell with reference thereto. (T. D. 
 21707; October 27, 1899.) 
 
 Persons engaged in the business of buying fee bills of witnesses on which war- 
 rants are issued and paid are held to be engaged in the business of brokers 
 under the second paragraph of section 2, act of June 13, 1898. (T. D. 21647; 
 October 10, 1899.) 
 
 Railway agents who exchange foreign money for American money, and vice 
 versa, merely in the transaction of the freight and passenger business of their 
 company, do not thereby involve themselves in special-tax liability as brokers. 
 (T. D. 21521; August 22, 1899.) 
 
 Steamship agents (as well as others) engaged in the sale of money orders that 
 come under the head of "exchange," as this word is used in the second para- 
 graph of section 2, act of June 13, 1898, are required to pay special tax as 
 brokers. Modification of former ruling. (T. D. 20790; March 6, 1899.) 
 
 The special tax of a broker is not required to be paid for the receipt and trans- 
 mission of money where there are neither purchases nor sales of any money 
 orders, drafts, bills of exchange, or any other instruments constituting 
 "exchange" in contemplation of the second paragraph of section 2, act of June 
 13, 1898. (T. D. 20919; March 25, 1899.) 
 
 Where a person was in the habit for many years of drawing sight drafts for small 
 amounts on London, advising foreign bankers in New York, who, in turn, 
 advise their London firm, it is held that such person is not liable for special 
 tax under section 2, act of June 13, 1898. (T. D. 19937; August 23, 1898.) 
 Orders on brokers: 
 
 The sheriff who, as tax collector and treasurer of his county, takes up witness 
 claims and applies them to the payment of the taxes of the witness or holder 
 
39 
 
 Broker under war revenue tax — Continued. 
 Orders on brokers — Continued. 
 
 thereof is not required to pay special tax therefor as a broker. (T. D. 21813; 
 November 28, 1899. ) 
 Where a broker receives an order to buy or to sell stock for a customer and 
 wires said order to his correspondent located in another city, the name of the 
 customer being undisclosed, only one tax accrues, said tax being on the sale 
 or the purchase made by the correspondent. When a customer asks his broker 
 to close any transaction, a tax again accrues at the rate of 2 cents per $100, or 
 fraction thereof, of the par value of the stock. (T. D. 21711; October 21, 1899. ) 
 Where an officer of a bank holds a membership in a stock exchange as agent for 
 his bank, and the business done by him on the stock board is the bank's busi- 
 ness, neither he nor his bank is required to pay special tax therefor as a broker, 
 the bank being exempt therefrom by the express provision of the statute 
 defining brokers. (T. D. 12; January 8, 1900.) 
 
 Broker, class 2 — Special tax. 
 Additional special tax: 
 
 The fact that the special-tax stamp of a regular broker under the second subdivision 
 of section 2, act of March 2, 1901, is held by a person who is a member of a stock 
 exchange does not relieve him from liability for additional special tax under 
 the third subdivision of section 8 of that act, if, in addition to business con- 
 ducted by him on the exchange, he makes it part of his business to engage in 
 transactions such as are described in the third subdivision of section 8. (T. D. 
 320; Aprils, 1901.) 
 
 The statute imposes a stamp duty on brokers' agreements to sell. "Calls'' are 
 agreements to sell and are taxable as such. (See decision of the United States 
 Supreme Court in the case of Treat v. White.) (T. D. 338; May 4, 1901.) 
 
 "Broker, class 2," under act of 1901: 
 The special tax created by paragraph 3, act of March 2, 1901, will be known as 
 "Broker, class 2." Under the law the class of brokers described in the act 
 must pay the special tax, whether they have previously paid the special tax 
 as brokers, or any other special tax, for the same period or not, and, from 
 July 1, 1901, they must pay this tax as well as that of broker, the two taxes 
 aggregating $100 per annum. (T. D. 292; March 7, 1901.) 
 
 Broker, class 2, defined: 
 
 "Brokers, class 2," under paragraph 3, Schedule A, includes every person, 
 association, copartnership, or corporation who shall, in his or its own behalf, 
 conduct what is commonly known as a "bucket shop," buying and selling 
 grain, produce, stocks, bonds, petroleum, or other commodities without an 
 intention on the part of either the seller to deliver or of the buyer to actually 
 receive and pay for the same; and they must pay a special tax of $50, and, in 
 addition the special brokers' tax of $50, making, together, a special tax of 
 $100 per annum under this section. (T. D. 318; April 3, 1901.) 
 Loose sheets kept by persons engaged in transactions described in paragraph 3, 
 section 8, act of March 2, 1901, will not answer in lieu of the book required 
 by that paragraph of the statute. The statute does not require that this 
 book shall be separate and distinct from the private business book of the 
 broker. (T. D. 324; April 13, 1901.) 
 
 Conditions requiring stamp tax: 
 A dealer in "puts" and "calls" in stocks or grain, outside of an exchange, board 
 of trade, or similur place, is liable to stamp tax as a broker, class 2. A 
 memorandum of sale given by a broker not a member of any exchange, and 
 
40 
 
 Broker, class 2 — Special tax — Continued. 
 Conditions requiring stamp tax — Continued. 
 
 likewise the order executed by a member- of an exchange, based upon said 
 memorandum, must be stamped. The manager of a branch office of a mem- 
 ber of a stock exchange is not liable to stamp tax. A broker, who is a 
 member of and transacts all of his business on an exchange, or similar place, 
 his business not consisting of the actual delivery of the certificates of stocks, 
 or commodities dealt in, need not qualify as a broker, class No. 2. (T. D. 
 351; May 29, 1901.) 
 If not only payment of the special tax, but also the sworn return required by the 
 third subdivision of section 8, actof March 2, 1901, to be made by every broker 
 who comes within the definition contained therein, be made within the month 
 of April, the 50 per cent penalty under section 3176, Revised Statutes, is not 
 incurred. (T. D. 315; March 28, 1901.) 
 
 Notice in writing under oath: 
 
 Every person engaged in the transactions described in the third subdivision of 
 section 8, act of March 2, 1901, is imperatively required by the statute to file with 
 the collector the ' ' notice in writing under oath ' ' prescribed by the law. Where 
 the broker takes orders from his customers with the printed or written state- 
 ment "that the actual delivery of the stock is contemplated and understood," 
 this fact will not of itself be accepted as conclusive on this point. If all the 
 transactions are closed according to quotations of price, without being carried 
 to any exchange, the business is that contemplated by this statute, and the 
 additional special tax must be paid therefor, notwithstanding the printed or 
 written statement of an understanding as to actual delivery. (T. D. 317; 
 April 1, 1901. ) 
 
 Collectors must not, in any case, issue stamps to brokers, class 2, from books of 
 regular brokers' special stamps, but from books that are issued only on requi- 
 sitions for stamps "brokers, class 2." (T. D. 298; March 15, 1901.) 
 
 Brokers' sales. 
 
 Sales of grain made in the offices of members of an exchange, to fellow members, 
 and sales made on the floor of an exchange, are liable to the tax imposed by 
 clause 2, Schedule A. war-revenue act. Sales made by correspondence or 
 telegrams are subject to a tax of 10 cents on the note or memorandum of sale. 
 (T. D. 21396; July 15, 1899.) 
 The memoranda of sales of stocks, issued by brokers, doing a legitimate broker's 
 business, should be stamped at the rate of 2 cents per $100, or fraction thereof; 
 and the memoranda of sales covering grain and other transactions, which 
 brokers give customers, should be stamped at the rate of 10 cents. (T. D. 
 21540; August 26, 1899.) 
 
 Building- and loan associations. 
 
 Any papers or instrument (otherwise taxable) executed by a building and loan 
 association that makes loans only to its shareholders, or any such papers and 
 instruments made or executed by the shareholders to the association and 
 within the limits of its legitimate operation, are exempt from the stamp tax, 
 except checks or drafts given by such associations, or by the shareholders 
 thereof, which are subject to the tax. (T. D. 20187; October 11, 1898.) 
 
 If a broker sells goods, wares, products, or merchandise, he is subject to a tax of 
 $20 as a commercial broker, and when he makes a sale of any goods or mer- 
 chandise, stocks, bonds, exchange notes of hand, or property of any kind or 
 description, he should affix and cancel a 10-cent stamp to his brokers' note or 
 memoranda of sale. (T. D. 19998; September 1, 1898.) 
 
41 
 
 Brokers' contract and notes — Stamp tax. 
 
 A contract used by real estate brokers in negotiating sales of real property 
 requires a 10-cent stamp under paragraph 14, Schedule A, war-revenue law. 
 (T. D. 116; May 1, 1900.) 
 
 With a view to uniformity of practice among collectors, the Commissioner sets 
 out the essential requirements of clause 14 of Schedule A, act of June 13, 1898, 
 relating to brokers' notes or memoranda of sales of real estate, stocks, bonds, 
 etc. (T. D. 191; July 31, 1900.) 
 Bucket shops — Stamp tax. 
 Closing of stock transactions: 
 
 As to closing of transactions in stocks at bucket shops, it is held that there is 
 nothing in paragraph 3 of Schedule A, act of March 2, 1901, which implies 
 that a purchase or sale of stocks must be presumed, and a written memorandum 
 delivered when a transaction is closed or terminated. The act presupposes 
 that transactions are closed without such memorandum of purchase or sale 
 because they are made with the intent that they may be closed, adjusted, or 
 settled according to or with reference to the public market qu6tations of 
 prices, or with the intent that they shall be deemed closed or terminated when 
 the public market quotations shall reach a certain figure. It is only original 
 transactions, either by pretended purchase or sale, that require written 
 stamped memoranda to be delivered to the other party under said paragraph. 
 (T. D. 308; March 25, 1901.) 
 
 Proprietors of bucket shops, who issue memorandums of their transactions in 
 stocks and in cotton, grain, etc., even though they sell, only "futures," are 
 required to pay special tax both as brokers and as commercial brokers. (T. D. 
 21607; September 14, 1899.) 
 
 The United States Circuit Court of Appeals for the third circuit decides that no 
 stamp tax accrues on a presumptive resale of stock where bucket-shop transac- 
 tions are settled by payment of differences. (T. D. 311; March 26, 1901.) 
 
 That part of ruling 21279 (Treasury Decisions, 1899, vol. 1, p. 1164) which holds 
 that in closing bucket-shop transactions written memoranda thereof, as agree- 
 ments to resell shares of stock, must be made, and that stamps must be affixed 
 thereto, is revoked. (T. D. 290; March 2, 1901.) 
 Butter, adulterated. 
 
 Collectors, in order that the files of the Bureau of Internal Revenue may be 
 complete, are required, at the close of each month's business, to report the 
 names of all persons who have paid special tax as manufacturers of renovated 
 butter, adulterated butter, and oleomargarine, taxable at the rate of 10 cents and 
 one-fourth cent per pound, respectively. (T. D. 576; September 2, 1902.) 
 
 In case of exportation of renovated butter it is unnecessary to furnish certificate 
 of landing in a foreign country, etc., required by the regulations in case of 
 exportation of oleomargarine or adulterated butter, but even when delivered 
 on board a foreign ship there must be no erasing of the stamps, marks, etc. 
 on packages of renovated butter as long as the ship remains in a United 
 States port or in waters within jurisdiction of the United States. (T. D. 575 
 August 29, 1902.) 
 
 The Commissioner declares that in view of the requirements of section 4, act of 
 May 9, 1902, the way is not clear for the formulation of regulations governing 
 the exportation of adulterated butter which shall not require the branding of 
 the words "adulterated butter" on packages for export, or the affixing of the 
 label in which the words appear. (T. D. 532; June 6, 1902.) 
 
 The law does not define or place special taxes on wholesale or retail dealers in 
 renovated butter, the only special tax in connection with renovated butter 
 
42 
 
 Butter, adulterated — Continued. 
 
 being that of manufacturer, but a tax of one-fourth of 1 cent per pound is 
 imposed on such renovated butter when manufactured and sold or removed for 
 consumption or use. (T. D. 530; June 2, 1902. ) 
 
 Batter packed by retail dealers : 
 Retail dealers are permitted to pack renovated butter from the original stamped 
 package in advance of sales, put it up in packages marked and branded as the 
 law and regulations prescribe, and offer same for sale, provided such prepared 
 retail packages remain in the manufacturer's original package, or at most 
 stacked up upon the outside thereof, or upon the lid detached from the pack- 
 age, until the contents have been bargained for and sold, provided that in so 
 doing none of the marks, brands, stamps, and notices required upon the pack- 
 age are concealed. (T. D. 578; September 9, 1905.) 
 
 Butter returned to the factory : 
 All renovated butter returned to the factory should be noted on the report, 
 Form 499, under a special heading written across the page, as follows: "Special 
 account of tax-paid renovated butter returned to the factory." The details to 
 be given consist of quantity, date when, and name and address of the person 
 from whom such lot is received. (T. D. 596; September 17, 1905.) 
 Supplemental regulations, under act of May 9, 1902, are issued, being designed 
 to modify in certain lespects regulations No. 9, for the sake of uniformity and 
 facility of reference to the matter, and intended as a substitute for all that 
 part of the regulations appertaining to the title heading, ' ' Process or renovated 
 butter." (T. p. 592; October 20, 1902.) 
 
 "Ladled" butter: 
 
 It is ruled that the product commonly known as "ladled" butter is a grade of 
 
 butter made by mixing or reworking different lots or parcels of butter so as to 
 
 secure a uniform product, and ' this product, when placed in the domestic 
 
 market, is subject to payment of internal revenue tax. ( T. D. 783 ; April 27, 1904. ) 
 
 "Ladled" butter, when subject to taxation: 
 
 Persons who engage in the production of "ladled" butter as a business will be 
 held liable to special tax as manufacturers of renovated butter if they melt 
 and refine their product, and to special tax as manufacturers of adulterated 
 butter if they use in it substances foreign to statutory butter, or produce a 
 butter having more than 16 per cent of water. Persons who sell "ladled" 
 butter which is adulterated will be liable to special tax as dealers in adulter- 
 ated butter. (T. D. 783; April 27, 1904.) 
 Marking is necessary: 
 
 Regulations as to the premises for the manufacture of renovated butter provide 
 that "collectors of internal revenue will decline to approve the bond of a 
 manufacturer of renovated butter unless they are satisfied that the premises 
 to be used for the manufacture of that article are entirely separate from those 
 used for the manufacture of adulterated butter or oleomargarine, or for the 
 handling or manipulation of butter nontaxable under the actof May 9, 1902." 
 (See regulations, No. 9, p. 92.) (T. D. 588; October 6, 1902.) 
 
 Manufacturers of adulterated butter can not be relieved from the necessity of 
 marking on their export packages the words "Adulterated butter." The 
 caution label is also required by section 4, act of May 9, 1902. The marks 
 and brands specified in the law are required to be placed on all packages 
 removed from the factory, whether for export or tax paid and sold in this 
 country. (T. D. 532; June 6, 1902.) 
 
 Refined butter, manufactured from salt, glucose, and imported low grade or 
 "grease-butter," is subject to tax as adulterated. (T. D. 557; July 19, 1902.) 
 
43 
 
 Butter, adulterated — Continued. 
 Marking is necessary — Continued. 
 Regulations, No. 9, revised in June, 1902, have been so modified as to permit the 
 use of a rubber stamp for cancellation of tax-paid stamps for renovated butter 
 in lieu of a stencil plate of brass or copper, as now required. (T. D. 561; 
 July 31, 1902.) 
 
 Marking packages: 
 As to the practice of dealers in disposing of renovated butter taken from stamped 
 packages without marking the parcels "Renovated butter," collectors are 
 advised that internal-revenue officers should be governed by the instructions 
 of this office dated February 9, 1902 (ruling 625, T. D.), and in such cases 
 notify the Secretary of Agriculture, whose officers are charged with the duty 
 of enforcing the regulations, No. 9, revised June, 1902, supplement No. 1, 
 paragraphs 16 to 22, inclusive, sending a copy of their report to the collector 
 and to this office. (T. D. 641; March 17, 1903.) 
 
 Packages imperfectly marked: 
 The Commissioner issues to internal-revenue officers and revenue agents 
 instructions relative to imperfectly marked packages of renovated butter, 
 requiring them to not only inform this Bureau as well as the collector of 
 the district in which the violation of the law may occur, but also the Agri- 
 cultural Department as to the number of the renovated butter factory in which 
 the imperfectly marked goods were produced, together with the collection 
 district in which the same is located, also the date of the removal of the goods 
 ascertained from the date of the cancellation of the revenue ■stamp, and any 
 other information bearing on the case. (T. D. 625; February 9, 1903.) 
 
 Repacking renovated butter: 
 Renovated butter should always bear or be accompanied by the evidence that 
 the manufacturer's tax has been paid. Therefore it should not be removed 
 or separated from the original package bearing the tax stamp and other pre- 
 scribed marks when it is in transportation, the subject of interstate commerce, 
 exported, or whenever or wherever offered for sale, until delivered to the 
 consumer or purchaser in retail trade. (See regulations, No. 9, p. 95, par. 22.) 
 (T. D. 578; September 9, 1902.) 
 
 Renovated butter returned to factory: 
 All renovated butter returned to the factory should be noted on the report, 
 Form 499, under a special heading written across the page, as follows: 
 " Special account of tax-paid renovated butter returned to the factory." The 
 details to be given consist of quantity, date when, and name of consignee, or 
 manner disposed of. (T. D. 596; November 17, 1902.) 
 
 c. 
 
 Capital of banks — Special tax. 
 Bank capital returns: 
 Under paragraph 1, section 2, act of March 2, 1901, a bank must include, as part 
 of its capital and surplus, in its special-tax return, the sum of money or secu- 
 rities deposited as security for the faithful performance of all the trusts 
 assumed by the bank. (T. D. 401; August 8, 1901.) 
 The Commissioner holds that banks and trust companies should include with 
 their capital the amount of money which they set apart for use in conducting 
 business, in making returns, and in reckoning the amount of special tax 
 which they are required to pay. (T. D. 402; August 8, 1901.) 
 
44 
 
 Cancellation of imprinted stamps. 
 
 All revenue stamps imprinted upon checks, drafts, and other instruments shall, 
 after their redemption and before the return of the instruments to the owners 
 thereof, be canceled by perforating or cutting a round hole about one-fourth 
 of an inch in diameter therein, or through the instruments on which the 
 stamps are imprinted. After the redemption and cancellation of the stamps 
 the imprinted instruments may, upon the request and at the expense and risk 
 of the owners thereof, be returned to said owners either by freight or express. 
 (T. D. 509; April 25, 1902.) 
 Cancellation of stamps: 
 
 The date for the cancellation of stamps for fermented liquors is extended from 
 July 1 to August 1, 1901, and shall be perforation, as required by circular 602. 
 (T. D. 368; June 24, 1901.) 
 Cards, playing — Special tax. 
 
 No special tax is required, under the internal-revenue laws, for the business of 
 manufacturing playing cards. Where a lithographer sends out sheets of 
 unfinished playing cards to another person who finishes the cards, it is the 
 latter and not the lithographer who is the manufacturer and who is required 
 to put up the cards in packs and pay the tax of 2 cents on each pack and affix 
 and cancel the requisite stamp under sections 38 and 39, act of August 28, 1894, 
 and who is required to register as a manufacturer of playing cards with the 
 collector of the district, under section 40 of this act. (T. D. 410; September 
 21, 1901.) 
 Cases cited — Judicial rulings. 
 
 Apple juice mixed with spirituous liquor; special tax; United States v. Lewis, 
 district court southern district of Illinois, 1904. (T. D. 801; June 21, 1904.) 
 
 Assessments; R. W. Brown v. H. S. Harkins, collector; TJ. S. circuit court, west- 
 ern district of North Carolina, May term, 1903. (T. D. 662. ) 
 
 Bank tax; undivided profits (Leather Manufacturers' National Bank, plaintiff 
 in error, v. Treat, collector, defendant in error, 128 Fed. Rep., 263). (T. D. 
 750; February 9, 1904.) 
 
 Bond, distiller's annual, suit on; United States, plaintiff in error, v. National 
 Surety Company, Kansas City, Mo., defendant; U. S. circuit court of appeals 
 (122 Fed. Bep., 904). (T. D. 665. ) 
 
 Bond, suit on collector's; Wm. M. Laffan, impleaded with others, plaintiff in 
 error, v. United States, defendant in error; U. S. circuit court of appeals, second 
 circuit, southern district of New York, decided April 10, 1903. (T. D. 653.) 
 
 Bottled beer, stamp tax under Schedule B; United States, plaintiff in error, v. 
 J. D. Her Brewing Company, defendant; U. S. circuit court of appeals (121 
 Fed. Rep., 41). (T. D. 630.) 
 
 Charter party; stamp tax (Ernest Lewis Simpson et al. v. Treat, 126 Fed Bep., 
 1003). (T. D. 742; January 13, 1904.) 
 
 Distilled spirits, forfeiture of; United States, ex rel., etc., v. Three Packages Dis- 
 tilled Spirits, A. Graff & Co., claimants; U. S. district court, eastern district of 
 Missouri (125 Fed. Bep., 52). (T. D. 701.) 
 
 Excise tax on business of refining sugar (Spreckels Sugar Refining Company, 
 plaintiff in error, v. McClain, 192 U. S., 397). (T. D. 760; March 8, 1904.) 
 
 Filled cheese, tax on goods exported; Cornell Brothers, plaintiffs in error, v. 
 F. E. Coyne (192 U. S., 418). (T. D. 757; March 4, 1904.) 
 
 Fruit distillers; assessment of taxes (United States district court, middle district 
 of Tennessee, No. 967, 1904; United States v. E. B. Cole). (T. D. 786; April 30, 
 1904.) 
 • Legacy tax; personal property held in trust (Natalie Bayard Brown et al. v. 
 W. Frank Kinney, 128 Fed. Rep., 310). (T. D. 764; March 15, 1904.) 
 
45 
 
 Cases cited— judicial rulings — Continued. 
 
 Legacy tax; Vanderbilt et al. v. Eidman, collector; U. S. circuit court, southern 
 
 district of New York (121 Fed. Rep., 590). (T. D. 618.) 
 • Legacy to a municipal corporation; Wm. L. Snyder, executor, plaintiff in error, 
 
 v. Bettmann, collector; U. S. Supreme Court, June 1, 1903 (190 U. S., 249). 
 
 (T. D. 666.) 
 Legacy tax; King et al., executors, v. Eidman, collector; U. S. circuit court, 
 
 southern district of New York. (T. D. 719j) 
 Legacy tax; vested and contingent interest (Louise L. Peck, executrix, v. W. 
 
 Frank Kinney, 128 Fed. Rep., 313). (T. D. 763; March 14, 1904.) 
 Oleomargarine, artificially colored to imitate butter; constitutionality of law 
 
 imposing tax (Leo. W. McCray, plaintiff in error, v. United States, May 31, 
 
 1904, 195 U. S., ). (T. D. 795; June 4, 1904.) 
 
 Oleomargarine; palm oil as coloring matter (August Cliff, plaintiff in error, v. 
 
 United States, October 24, 1904, 195 U. S., ). (T. D. 839; October 28, 
 
 1904.) 
 Oleomargarine; waiver of jury (Fred J. Schick, plaintiff in error, v. United 
 
 States, and, Wm. Broad well, plaintiff in error, v. United States, May 31, 1904, 
 
 195 U. S., ). (T. D. 802; June 28, 1904.) 
 
 Official records, testimony of collectors and deputy collectors; In re Lamberton 
 
 habeas corpus; U. S. district court, western district of Arkansas. (T. D. 689.) 
 Stamp tax on sales of stock; United States v. B. Z. Taylor; U. S. district court, 
 
 southern district of Illinois, decided February 9, 1903. (T. D. 627.) 
 Shipping' liquors under false brands (United States circuit court of appeals, 
 
 fourth district, No. 502, United States, plaintiff in error, v. Twenty Boxes of 
 
 Corn Whisky; N. Glenn Williams, claimant, defendant in error; decided 
 
 November 15, 1904). (T. D. 844; November 28, 1904.) 
 South Carolina Dispensary; special tax (State of South Carolina v. United States, 
 
 39 U. S. Court of Claims, ). (T. D. 759; March 8, 1904.) 
 
 Stamp tax; voluntary payment (Robert A. Chesbrough, plaintiff in error, v. 
 
 United States, 192 U. S., 253) . (T. D. 747; February 3, 1904. ) 
 Stock transactions; stamp tax (The Municipal Telegraph and Stock Company v. 
 
 Ward, collector, etc., 133 Fed. Rep., 70). (T. D. 774; April 12, 1904.) 
 Vested or contingent interest; legacy tax (Land Title and Trust Company, 
 
 executor of Geo.. M. Troutman, v. William McCoach, 126 Fed. Rep., 381). 
 
 (T. D. 744; January 25, 1904.) 
 War-revenue tax; sale of stocks; Geo. C. Thomas, plaintiff in error, v. United 
 
 States (192 U. S., 363). (T. D. 758; March 5, 1904.) 
 Cases and decisions of courts. 
 
 Bank notes, tax on; Bank of Iron Gate v. Maggie A. Brady, executrix of James 
 
 D. Brady, deceased; decided March 24, 1902, in U. S. Supreme Court; vol. 185, 
 
 U. S. Reports. (T. D. 493; March 29, 1902.) 
 Bank surplus and undivided profits; special tax due; Leather Manufacturers' 
 
 National Bank v. Chas. H. Treat, collector; decided in U. S. circuit court (N. Y), 
 
 116 Fed. Rep., 774. (T. D. 538; June 23, 1902.) 
 Certificates of stock; tax on, constitutional; United States v. George C. Thomas; 
 
 decided January 26, 1902, in U. S. circuit court, southern district of New York. 
 
 (T. D. 468; February 4, 1902.) 
 Coupons in tobacco packages; Emanuel Felsenheld, claimant of 288 packages of 
 
 Merry World Tobacco, v. United States; decided May 19, 1902, in U. S. Supreme 
 
 Court; vol. 185, U. S. Reports. (T. D. 525; May 21, 1902.) 
 Dram-shop bonds, authorized by State and municipal regulations, held not tax- 
 able under Federal law; Peter Ambrosini v. United States; decided October 20, 
 
 1902, in U. S. Supreme Court; vol. 185, U. S. Reports. (T. D. 593; October 25, 
 
 1902.) 
 
46 
 
 Cases and decisions of courts — Continued. 
 
 Excise tax on sugar refining; Spreckles' Sugar Refining Company v. P. A. Mc- 
 Clain; U. S. circuit court of appeals; 113 Fed. Rep., 244. (T. D. 462; Jan- 
 uary 20, 1902. ) , 
 
 Legacy tax, nonresidents; decision in Eidman, collector, v. Martinez, 184 U. S., 
 578. (T. D. 490; March 21, 1902.) 
 
 Legacy tax, nonresidents; decision in Moore, collector, v. Ruckaber, 184 U. S., 
 593. (T. D. 490; March 21, 1902.) 
 
 Warehouse receipts, taxable; charge of Judge Clark, in Irby, Boyd & Ashford v. 
 D. A. Nunn, collector; decided in TJ. S. circuit court, January 28, 1902, west- 
 ern division of western district of Tennessee. (T. D. 469; February 5, 1902.) 
 Caution notices. 
 
 The statute prohibits the use of any device, "caution notice," or trade label in 
 the similitude of, or having the general appearance of, a stamp required by 
 the internal-revenue laws for distilled spirits. The Commissioner of Internal 
 Revenue has not adopted a standard as to what devices or trade labels of this 
 kind are allowable and what are prohibited. (T. D. 507; April 21, 1902.) 
 
 The use of caution stamps on packages of distilled spirits can not be coun- 
 tenanced. Wholesale liquor dealers and rectifiers who place such stamps on 
 packages containing distilled spirits must do so at their own risk if these cau- 
 tion stamps are in any wise in the similitude of stamps required for spirits, 
 (T. D. 559; July 26, 1902.) 
 Caution labels, similar to revenue stamps, prohibited: 
 
 Collectors are advised that section 17, act of February 8, 1875 (sec. 3316a, Rev. 
 Stat.), provides that the caution notice, label, or stamp used by the distiller, 
 rectifier, or wholesale dealer renders the package liable to seizure, and the 
 party placing thereon said notice or label to heavy penalties, provided the 
 caution notice or label shall be in the similitude or likeness of, or Shall have the 
 resemblance or general appearance of, any internal-revenue stamp required by 
 law to be affixed to the cask or package. (T. D. 607; December 17, 1902.) 
 Caution-notice labels, when legal: 
 
 Caution-notice labels with the name and address of the manufacturer printed 
 above and separated from the notice proper by printed lines are not illegal. — 
 T. D. 771, issued April 9, 1904, had reference only to the imprinting of the 
 "union label or other extraneous matter" within the space reserved for the 
 caution notice. (T. D. 779, April 20, 1904.) 
 The form of caution-notice labels: 
 
 Caution-notice labels must be in conformity with the regulations which prescribe 
 that the manufacturer, if he so desires, may increase the size of his label and 
 print immediately above the caution notice his name as manufacturer and ' 
 his address and the trade-mark name of the cigars or cigarettes; but such 
 matter must not encroach in any way upon the space reserved for the caution 
 notice, which must be printed solid. (T. D. 794; May 31, 1904.) 
 Union labels on caution notices: 
 
 The imprinting and use of the union label, or other extraneous matter, on the 
 caution-notice label by manufacturers of tobacco and cigars is held to be 
 illegal and contrary to the regulations. (T. D. 771; April 9, 1904.) 
 Cartons, pasteboard, representing cig'ar boxes. 
 
 The use of "dummy" cigar boxes is not sanctioned by section 3397, Revised 
 Statutes. Internal-revenue officers are authorized by section 3177, Revised 
 Statutes, to examine such articles, in order to determine whether they are 
 boxes of cigars or merely imitations. (T. D. 814; August 2, 1904.) 
 
47 
 
 Cavendish tobacco. 
 
 Dealers in tobacco are not permitted to withdraw from original stamped packages 
 of cavendish, plug, twist, or leaf tobacco any portion thereof to be used as 
 sample packages, affixing thereto the words "This is an authorized subi vision 
 taken from a properly stamped package. ' ' Each such package must be individ- 
 ually stamped, branded, and labeled by the manufacturer. (T. D. 712; October 
 23, 1903. ) 
 
 Circular No. 110, Internal Revenue, No. 648, sets forth amendatory regulations as 
 to putting up, stamping, and labeling cavendish, plug, twisj;, and leaf tobacco. 
 The regulations, as thus amended, require, among other things, that material 
 of a substantial nature shall be used for packages containing cavendish, plug, 
 or twist tobacco, after the same have been submitted to the Commissioner of 
 Internal Revenue and approved by him, as provided in regulation No. 8, page 
 45. (T. D. 700; September 23, 1903.) 
 Charter parties. (See also Decision 19571. )_ 
 
 The term "vessel," in Schedule A, act of June 13, 1898, under the head of 
 " Charter party," does not include barges which, under the law, are not regis- 
 tered, but are merely licensed. (T. D. 19653; July 7, 1898.) 
 
 The tax imposed under the war revenue act, on charter parties, is applicable to 
 registered tonnage in the foreign trade, either American or foreign bottoms, 
 but does not apply to enrolled or licensed tonnage. ( T. D. 19823 ; August 3, 1898. ) 
 Certificates — Stamp tax. 
 
 A notary public, when engaged in taking depositions to be used as evidence 
 before some judicial tribunal, being a judicial officer, the certificate authenti- 
 cating his official acts as such officer is not within the internal-revenue act of 
 June 13, 1898 (30 Stat., 455), Schedule A requiring a 10-cent stamp to be 
 affixed on a '' certificate of any description required by law not otherwise 
 specified in this act." (T. D. 122; May 11, 1900.) 
 
 Notarial certificates attached to depositions of witnesses, to be used in cases 
 pending in court, do not require to be stamped, no matter in what form they 
 are executed. (T. D. 9; January 8, 1900.) » 
 
 Nonnegotiable commission certificates, used by thrashing-machine companies 
 and the like, are not subject to stamp tax. (T. D. 23; January 24, 1900.) 
 Certificates of nonlanding : 
 
 Where articles subject to internal-revenue tax are laden for export on board a 
 vessel subsequently touching at a domestic port, and no part of the cargo sub- 
 ject to said tax is landed at said port, the collector of the port of final clearance 
 will, on clearance of the vessel and the receipt of certified copies of the entries 
 filed at the port of original shipment, forward to the collector at the port of 
 shipment a certificate of nonlanding, showing that no part of said vessel sub- 
 ject' to internal-revenue tax was unladen at said port, or any other domestic 
 port at which the vessel touched. (T. D. 563; August 6, 1902.) 
 Certificates of collateral pledges: 
 
 Certificates of shares of stock pledged as collateral for the future payment of 
 money in definite sums are subject to tax under the act of March 2, 1901, on 
 each $100 of face value, or fraction thereof, 2 cents. (See opinion of Attorney- 
 General.) (T. D. 457; January 6, 1902.) 
 Duplicate certificate of residence: 
 
 Collectors are instructed to forward by registered mail to the Treasury Depart- 
 ment for investigation and report every application made by a Chinese person 
 for a duplicate certificate of residence, under the act of Congress approved 
 November 3, 1893, and regulations made in pursuance thereof. (T. D. 609; 
 December 23, 1902.) 
 
48 
 
 Certificates — Stamp tax — Continued. 
 Duplicate certificate of residence — Continued. 
 The United States circuit court for the southern district of New York, in the 
 case of United States v, George C. Thomas, decided January 26, 1902, that 
 certificates of stock, under act of June 13, 1898, are subject to war-revenue tax 
 of 2 cents per $100, and the act itself is held to be constitutional. The opinion 
 of the court is promulgated for the information of collectors of internal reve- 
 nue. (T. D. 468; February 4, 1902.) 
 
 Certificates and revenue tax. 
 
 Certificates of authority issued to insurance agents by State officers are subject to 
 taxation, and the rate imposed is 10 cents on each certificate. (T. P. 20551; 
 January 16, 1899. ) 
 
 Certificates of indebtedness issued by mutual, or deposit, or investment companies 
 are taxable at the rate of 5 cents for each $100, or fractional part thereof, of 
 the face value, and the face value is to be determined by ascertaining the 
 highest value of the coupons attached to the certificates. (T. D. 219; Sep- 
 tember 28, 1900. ) 
 
 Certificates of nomination and all papers relating to the exercise of elective 
 franchise are exempt from tax. (T. D. 228; October 11, 1900. ) 
 
 Certificates attached to depositions to be used in legal proceedings are not taxable 
 under the war-revenue act. (T. D. (9) ; January 8, 1900. ) 
 
 Certificates as to use of alcohol withdrawn from bond for scientific purposes 
 under section 3297, Revised Statutes, held to be not subject to stamp tax under 
 act of June 13, 1898. (T. D. 20980; April 3, 1899. ) 
 
 Certificates of bank stock, taxable. 
 
 A certificate of bank stock is liable to stamp tax, as being equivalent to a memo- 
 randum or contract of sale. It is the evidence of the holder's title to shares 
 in the property and franchises of a corporation. Congress has declared that 
 every person who holds such a certificate in such artificial body and shall 
 transfer by sale to another the right to participate in such corporation and 
 become a member thereof shall pay a tax on the contract or transaction ' 
 whereby the transmission is effected. See decision of circuit court of the 
 U. S. for southern district of New York, January 26, 1902. (T. D. 468; Feb- 
 ruary 4, 1902. 
 
 Certificates furnished by national banking associations making report of earn- 
 ings and dividends, as required by section 5212, Revised Statutes, to be attested 
 by the oath of the president or the cashier, are not subject to special tax. 
 (T. D. 19698; July 14, 1898.) 
 
 Certificates of damage to vessels and their machinery require a 25-cent stamp only 
 upon the original, not upon copies that may be made. (T. D. 19706; July 18, 
 1899.) 
 
 Certificates showing the transfer of shares of stock being liable to stamp tax 
 are required to bear a stamp tax based on the face value of the shares. (T. D. 
 19710; July 19, 1898.) 
 
 Certificates of acknowledgment to deeds or to mortgages were expressly exempt 
 from taxation under the old law of 1864, and are likewise held to be exempt 
 under the law of June 13, 1898, they being considered a part of the deed or of 
 the mortgage, which alone requires a stamp. Decision 19681 reversed. (T. D. 
 19764; July 26, 1898J 
 
 Certificates issued by the health officer of New York, under State statute, rela- 
 tive to the employment of children, are exempt, being issued in the discharge 
 
49 
 
 Certificates — Stamp tax — Continued. 
 Certificates of bank stock, taxable — Continued. 
 
 of a duty connected with the operations of the Government. (T. I). 19825; 
 August 2, 1898. ) 
 
 Certificates issued to teachers by State or county officers do not require a stamp. 
 Certificates required by law, issued by State officers at request of private per- 
 sons, solely for private use, require a stamp. (T. D ; 19883; August 10, 1898.) 
 
 Certificates of membership in a wheelman's protective association are not tax- 
 able as certificates, but are subject to stamp tax as a guaranty- (T. D. 19934; 
 August 22, 1898. ) 
 
 Certificates as to indorsement by collectors, on registers, enrollments, etc., show- 
 ing change in the mastership of a vessel, are not taxable. A certificate of 
 acknowledgment on bills of sale are taxable at 10 cents, if required by law. 
 A certificate to a mortgage, being a part of the instrument, which is taxable, 
 is not itself taxable, being covered by the mortgage. Certificates of inspection 
 of steam vessels, and all copies thereof, are exempt from stamp tax. (T. D. 
 20387; November 26, 1898.) 
 
 It is held that letters of administration, letters testamentary, or of guardianship, 
 do not require stamps. Petitions for the appointment of administrators, exec- 
 utors, or guardians, require no stamps. * * * No stamp is required on cer- 
 tificate of tax sale for unpaid taxes, nor on the certificate of redemption from 
 sale. (T. D. 19837; August 5, 1898.) 
 
 The words "certificate of any description required bylaw, not otherwise speci- 
 fied in this act, ten cents," as they occur in the war-revenue law of June 13, 
 1898, construed in response to various interrogatories addressed to the Com- 
 missioner. (T. D. 19746; July 21, 1898.) 
 Certificates of deposit — Stamp tax. 
 
 Certificates of deposit bearing interest are subject to a tax of 2 cents when for 
 a sum not exceeding $100, and, also, to the same tax for every additional $100, 
 or fractional part thereof. (T. D. 19570; June 24, 1898.) 
 
 Certificates of deposit, to secure the payment of gas bills, are taxable under par- 
 agraph 5, Schedule A, at 2 cents for each $100, or fractional part thereof, as 
 deposits drawing interest. (T. D. 20003; September 3, 1898.) 
 
 Certificates of deposit payable on demand and bearing interest, if left for speci- 
 fied time, require a 2-cent stamp when issued, and, if paid subsequent to time, 
 interest accruing, additional stamps at the rate of 2 cents per $100. (T. D. 
 20420; December 13, 1898.) 
 
 Charter parties. 
 
 The copy or duplicate of a foreign-made charter party, chartering a vessel to load 
 at a port within the United States, which is, the original evidence in this coun- 
 try of the vessel's charter and the evidence accepted by all concerned, is 
 subject to taxation. (T. D. 21419; July 21,1899. ) 
 
 The tax under the head of charter party is based on the net registered tonnage 
 and not on the gross registered tonnage. (T. D. 21754; November 1, 1899.) 
 Charter party — Decision in Simpson et al. ; 
 
 Decision of United States circuit court (N. Y. ) in the case of Simpson et al. v. Treat, 
 Collector, is published, sustaining the ruling of the Commissioner of Internal 
 Revenue in regard to tax on charter parties. Copies of such papers used in 
 this country, the originals of which were executed abroad, held subject to 
 stamp tax under the war-revenue act (see T. D. 21419). (T. D. 742; January 
 13, 1904.) 
 31331—05 4 
 
50 
 
 Checks, drafts, notes, etc. 
 
 Banks must not affix stamps to unstamped checks presented, and must return to 
 the drawer any unstamped check presented for payment. Contrary instruc- 
 tions, contained in Treasury decision 19606 (dated June 29, 1898) are revoked. 
 (T. D. 21395; July 14, 1899.) 
 
 Grain and cotton tickets, cashed by a regular employee of the company issuing 
 the same, or from. buyers' own money in the hands of third parties, are not 
 taxable. (T. D. 21708; October 30, 1899.) 
 
 It is held that promissory notes under seal are taxable as other promissory 
 notes, and not as bonds. Therefore, the ruling on this point, in Treasury deci- 
 sion 21691, is revoked. (T. D. 21815; December 4, 1899.) 
 
 Orders for the payment of money are required to be stamped, although intended 
 merely as receipts or vouchers. The drawer of the order is liable for the 
 stamp, but, besides this, the maker, or party for whose use or benefit the 
 order shall be made, signed, or issued, is liable also. (T. D. (3); December 
 30, 1899.) 
 Checks and drafts: 
 
 A check, being an order drawn on a bank, or banker, against a deposit, and 
 payable on demand, requires a 2-cent stamp, whether payable in or out of this 
 country. A draft being also an order for the payment of money, differs from 
 a check in that it may or may not be payable on demand, whether abroad 
 or in this country. Drafts, payable at sight or on demand, are taxable at the 
 rates of 2 and 4 cents per $100, and a fraction thereof, the tax being applica- 
 ble, excepting checks, to all orders drawn singly for the payment of money. 
 (T. D. 21021; April 12, 1899.) 
 An order when liable to stamp tax: 
 
 An order for the payment of money, drawn by one officer of a lodge or society 
 on the treasurer thereof, does not require to be stamped if presented for pay- 
 ment directly to thu treasurer by the party in whose favor said order is drawn, 
 but if the order is cashed by a bank or otherwise negotiated and presented to 
 the treasurer for payment by a party other than the one in whose favor it was 
 originally drawn, it requires a 2-cent stamp. (T. D. 21077; May 1, 1899.) 
 
 Bills of exchange or orders for payment of money drawn abroad, but payable in 
 the United States at sight or on demand, require only a 2-cent stamp on each 
 instrument. Reversal of ruling published as Treasury decision 20881 in this 
 respect. (T. D. 20947;' March 31, 1899.) 
 
 Orders for the payment of money contained in acceptance of drafts require but 
 one stamp of 2 cents, whether the drafts are at sight or on time. (T. D. 20874; 
 March 15, 1899.) 
 
 Receipts accepted in lieu of promissory notes as evidence of money loaned must 
 be stamped as promissory notes. (T. D. 20985; April 8, 1899.) 
 
 Receipts presented by any person other than the depositor must be stamped. 
 (T. D. 21020; April 12, 1899.) 
 
 (See also Decisions 20785, 20788, 20949, 20952, 21471, 21780.) 
 Check and orders, when taxable: 
 
 A check may be defined as a draft or order upon a bank, purporting to be drawn 
 upon a deposit of funds for the payment of a certain sum of money to a person 
 named therein, or to the bearer, and payable on demand. A check so drawn, 
 whether inland or foreign, requires a 2-cent stamp. An order for the payment 
 of money to a certain person, or to his order, or to bearer, may or may not be 
 payable on demand, and requires a stamp at the rate of 2 cents per $100 or 
 fraction thereof. An order for the payment of money taxable at the rate of 4 
 
 . cents per $100 or fractional part thereof is predicated upon the fact that it is 
 
51 
 
 Checks, drafts, notes, etc. —Continued. 
 Check and orders, when taxable — Continued. 
 
 payable abroad. The transfer of a certificate of stock from a decedent trustee 
 to his successor is not taxable. A letter of advice to a foreign correspondent 
 for payment of a lump sum, covering several orders, requires a stamp at the 
 rate of 4 per cent per $100 or fractional part thereof on the basis of the total 
 amount named. (T. D. 20648; January 30, 1899.) 
 
 "Cotton tickets" 0. K.'ed by a buyer and paid with the buyer's money in the 
 hands of third party are exempt from stamp tax. This would not include 
 the payment of tickets by a bank' out of the funds of depositors nor pay- 
 ment of tickets in the hands of persons to whom they had been transferred. 
 (T. D. 20375; November 26, 1898.) 
 Check as a promissory note: 
 
 A check used as a promissory note is an acknowledgment of a debt, and must 
 be stamped accordingly — that is, at the rate of 2 cents per $100 or fraction 
 thereof — and if the collateral pledged as security for such a debt is pledged 
 specifically for this one loan, then the pledge of collateral is subject to taxation 
 on the amount of the loan in excess of $1,000 at the rate provided in the para- 
 graph of Schedule A relating to pledge or mortgage. (T. D. 20463; December 
 27, 1899.) 
 
 Receipt for money is an acknowledgment of payment. Receipts used by depositors 
 to withdraw money from bank, in place of checks, are held and relied upon as 
 an order for payment of money and must be stamped. Privileged occupation 
 as a "banker" involves reciprocal obligation to restrict the instruments upon 
 which money is paid to such as are specified in the law to be used for that 
 purpose. (Modified subsequently.) (T. D. 20192; October 12, 1898.) 
 A receipt may become a check: 
 
 Modifying decision (T. D. 20192), it is held that if a person does not give a 
 check he does not. have to pay tax, and if he goes to the bank and the bank 
 pays him upon its dues to him and he gives a receipt, such receipt does not 
 require a stamp; but if he issues his receipt so that it will be good in the hands 
 of another person to draw upon his deposit for the amount of it, then it loses 
 the character of a receipt and becomes a check or draft, and is subject to tax. 
 (T. D. 20231; October 21, 1898.) 
 Grain tickets may be taxed as orders: 
 
 " Grain tickets," if found not to be used in good faith as receipts for the purchase 
 price of grain, but as checks or orders for the payment of money by a bank 
 are subject to stamp tax under the war-revenue law. (T. D. 20087; Septem- 
 ber 17, 1898.) 
 
 The renewal of a note does not of itself renew the pledge securing it. The 
 pledge must be specifically renewed in order to subject it to taxation. (T. D. 
 20118; September 28, 1898.) 
 
 Whenever "grain tickets" are presented for payment to a private person under 
 contractual relations with the person, firm, or corporation engaged in the grain 
 business, they are subject to taxation as orders for the payment of money, no 
 matter what may be the form of the ticket. (T. D. 20239; October 24, 1898.) 
 
 "Time checks" become taxable whenever they pass by transfer from a work- 
 man or employee to a third party, being then orders for the payment of money 
 under the war-revenue act. (T. D. 20312; November 9, 1898.) 
 Drafts in favor of postmasters: 
 
 A debit ticket drawn by an officer or employee of a bank by direction of a 
 depositor for the payment of a sum of money from funds deposited by said 
 depositor, and used in lieu of a check, requires a 2-cent stamp. (T. D. 19931; 
 August 19, 1898.) 
 
52 
 
 Checks, drafts, notes, etc. — Continued. 
 Drafts in favor of postmasters — Continued. 
 
 Checks drawn in a foreign country, but payable in the United States, are subject 
 to stamp tax at the rate of 2 cents on each $100, or fractional part thereof. 
 (T. D. 19933; August 22, 1898. ) 
 
 The ruling made July 8, 1898, with reference to drafts drawn in favor of post- 
 masters must be confined to drafts drawn by disbursing officers or other gov- 
 ernment officers in favor of postmasters, or drafts drawn by a bank in favor of 
 postmasters in the transmission of funds belonging to the United States, from 
 one point to another. In the latter case the draft should state expressly on 
 its face that the moneys are "United States funds." It is not extended to 
 checks or drafts in favor of postmasters by private persons. Every check or 
 draft drawn by a private person in favor of a postmaster should bear a 2-cent 
 stamp, and postmasters should not receive checks or drafts of this kind from 
 any person or from any bank unless the requisite stamp has already been 
 affixed and duly canceled. (T. D. 20155; October 6, 1898. ) 
 
 Checks and drafts of foreign diplomats: 
 The checks and drafts of ambassadors, ministers, and of other members of for- 
 eign diplomatic corps residing in this country are exempt from tax when 
 such checks or drafts are made in the course of official business or in connec- 
 tion with expenses incidental to their residence here. If, however, such offi- 
 cials become owners of property in this country or engage in commerce they 
 become, in connection with such business, subject to tax the same as citizens 
 of this country, property holders, or merchants. (T. D. 20024; September 8, 
 1898. ) 
 Where the treasurer of a savings bank issues his check and at the same time an 
 order, the check and the order being fastened together and both presented to 
 the bank, a. 2-cent stamp, affixed to the check, is all that is necessary. 
 (T. D. 19712; July 19, 1898.) 
 
 Coupons taxable: 
 
 Bank checks drawn in this country on a foreign bank are subject to the same 
 tax as checks drawn in this country on domestic banks. (T. D. 19875; 
 August 10, 1898. ) 
 
 Checks of officers of either a county or municipal corporation, drawn in their 
 official capacity in discharge of duties imposed upon them by law, are exempt 
 from tax by the first proviso of section 17, act of June 13, 1898. (T. D. 19693; 
 July 14, 1898.) 
 
 Interest coupons made in the form of promissory notes are taxable as 
 promissory notes. Where a note embraces in its face value botH principal 
 and interest, tax is imposed on face value. The acknowledgment of an instru- 
 ment does not require a stamp. A contract of bargain and sale of real estate 
 is taxable as a conveyance. Where a lease is given to a tenant providing for 
 rent payments represented by notes, both lease and notes are taxable. Assign- • 
 ments bear the same tax as original instruments. (T. D. 19800; August 1, 1898.) 
 
 Checks against public funds. 
 A judgment note, being « promissory note, although not a promissory note of 
 the ordinary kind, is held by this office to be subject to stamp tax under par- 
 agraph 4, Schedule A, act of June 13, 1898. (T. D. 19652; July 7, 1898.) 
 Checks drawn against public funds belonging to the United States and deposited 
 in a national bank by a postmaster to meet expenditures of his office are 
 regarded as drawn in the legitimate exercise of official functions, and there- 
 fore exempt from stamp tax. (T. D. 19696; July 14, 1898.) 
 
53 
 
 Checks, drafts, notes, etc. — Continued. 
 Checks against public funds — Continued. 
 
 Checks, drafts, or orders, of whatever description, made for the payment of 
 money, excepting checks drawn by public officers against public funds to be 
 used in the exercise of official functions, require the 2-cent stamp at the time 
 of presentation. (T. D. 19711; July 19, 1898.) 
 
 Checks made and issued prior to July 1, 1898, do not require to be stamped 
 under the act of June 13, 1898, even if they are not cashed until after July 1. 
 (T. D. 19556; June 22, 1898. ) 
 
 No stamp is required for the withdrawal of money from savings banks by depos- 
 itors using pass books. (T. D. 1911; June 30, 1898.) 
 
 Official checks of disbursing officers of the Indian Service, drawn by them against 
 public funds, in discharge of duties imposed by law, are exempt from stamp 
 tax. (T.D. 19683; July 12, 1898.) 
 
 Orders drawn under a State law for the payment of money out of the State 
 funds, and bank checks issued by the treasurer of the State for such pay- 
 ments, are exempt from stamp tax under Schedule A of the act of June 13, 
 1898. (T. D. 19523; June 18, 1898.) 
 
 The 2-cent stamp is required to be affixed to any check, cjraft, or order for the 
 payment of money drawn by any person upon any other person. (T. D. 
 19654; July 7, 1898.) 
 Liability for unstamped check: 
 
 A bank officer receiving a check on which a stamp is required to be affixed, but 
 which is without the stamp, becomes liable under section 10, act of June 13, 
 1898, unless at the time of receiving the check the bank chooses to affix and 
 cancel the stamp. (T. D. 19568; June 24, 1898. ) 
 
 Checks drawn by an officer of a company on the company for the payment of 
 workmen are subject to stamp tax under the act of June 13, 1898. (T. D. 
 19574; June 25, 1898.) 
 Taxable bonds of officers : 
 
 Bonds given by all officers or employees, whether public or private, conditioned 
 for the due execution or performance of the duties of any office or position, 
 and to account for money received by virtue thereof, are taxable, except offi- 
 cial bonds of State, county, or municipal officers. Indemnity bonds to indem- 
 nify persons who have become sureties on other bonds are taxable. See cir- 
 cular 610. (T. D. 432; November 7, 1901.) 
 
 Collectors are advised by internal-revenue circular 613 that in addressing offi- 
 cial telegraphic messages it is necessary to use only the words "Commissioner 
 Internal Revenue, Washington, D. C," the name of the Commissioner or of a 
 deputy commissioner being superfluous. In signing official messages the sur- 
 name only need be used. Orders by telegraph for stamps should be avoided, 
 if possible. (T. D. 444; December 9, 1901.) 
 
 Regulations are given in internal-revenue circular 589 to enable collectors to 
 avoid disallowances in their disbursing accounts, and to protect them from 
 loss by reason of improper payments on account of expenses of deputies. 
 (T. D. 269; January 21, 1901.) 
 
 Use of special-tax stamp: 
 The Commissioner, in circular No. 595, calls the attention of collectors to the 
 practice of some deputy collectors who issue receipts in violation of section 
 3183, Revised Statutes, for moneys received in payment of special taxes, and 
 directs the immediate cessation of the practice. Where money is received in 
 payment of special taxes the proper special-tax stamp, showing payment, 
 must be issued to the taxpayer. (T. D. 297; March 11, 1901. ) 
 
54 
 
 Checks, drafts, notes, etc. — Continued. 
 Use of penalty envelopes: 
 
 The Commissioner issues circular No. 559 as to the use of penalty envelopes, 
 instructing them that these envelopes can be used by private parties only 
 where specific information is asked for by an officer authorized to use the 
 same, and where the envelope is inclosed with the return address of persons 
 from and through whom official information is desired. (T. D. 319; April 4, 
 1901.) 
 
 Collectors are advised as to the compensation limit of gaugers, storekeepers, 
 and storekeeper and gaugers appointed under civil service rule 6, the pay of 
 such officers being restricted to $3 per day or to $500 for any fiscal year. See 
 internal revenue circular No. 614. (T. D. 447; December 12, 1901.) 
 The equalization of wantage: 
 
 In relation to the equalization of wantage in packages of spirits in warehouse 
 gaugers, storekeepers, and storekeeper-gaugers, assigned to duty at distilleries 
 and distillery warehouses where spirits are in store, are reminded that it is 
 their duty to observe closely the conduct of all persons who have access to 
 such spirits for legal and proper purposes, to the end that the fraudulent prac- 
 tice of equalizing wantage by shifting the spirits from one package to another 
 may be prevented, and advised in circular No. 594 that any failure on their 
 part to exercise due diligence in this respect will be considered ground for 
 suspension from duty or removal from office. (T. D. 296; March 11, 1901.) 
 Records of grain distillers: 
 
 Revenue agents are instructed in circular No. 612 to rigidly enforce the regula- 
 tions governing storekeepers and storekeeper and gaugers in keeping the 
 records of the operations of grain distillers as to irregularities and violations of 
 law, involving the necessity of reporting the same to the Commissioner. 
 (T. D. 439; December 3, 1901.) 
 Special tax nnder act of 1901: 
 
 The Commissioner issues circular No. 26 (Int. Rev. No. 593) relative to the 
 special tax created by act of March 2, 1901, instructing collectors that, for the 
 period from April 1 to June 30, 1901, the special-tax stamps for broker of the 
 present series will be used. For this purpose the stamps (and stubs) will be 
 plainly marked "Class 2," and only this class of stamps will be issued from 
 books so marked. Collectors will immediately, on receipt of this circular, 
 make requisition on this office for such stamps as may be required in their 
 respective districts. (T. D. 292; March 7, 1901.) 
 Circulars. 
 
 As to the redemption of stamps by banks or stationers, circular No. 603 says: 
 "As stationers or the officers of banks can not generally make affidavit that 
 their customers are not indebted to the United States, that they are the bona 
 fide owners of the stamps presented for redemption, or to such other facts as 
 are necessary to the support of claims, they ca'n not be recognized as duly 
 qualified agents for the presentation of claims for their customers.'' (T. D. 
 361; June 18, 1901.) 
 
 Circular No. 625, issued to collectors, with reference to excessive losses of dis- 
 tilled spirits in bonded warehouses, regulated under section 4, act of May 28, 
 1880, and section 58, act of August 28, 1894, and superseding circular 557, 
 dated March 19, 1900. (T. D. 534; June 10, 1902. ) 
 
 Circular No. 620, addressed to collectors with reference to exchanging beer, 
 tobacco, and snuff stamps under the provisions of act of April 12, 1902, and 
 accounting therefor, directs that brewers and manufacturers of tobacco and 
 snuff having possession of unaffixed stamps issued for the payment of tax at 
 
55 
 
 Circulars — Continued. 
 
 the old rate upon beer, tobacco, and snuff may present the same to the col- 
 lector of their district on or after the date when the new rate of taxation goes 
 into effect for exchange under the provision of law. (T. D. 503; April 16, 1902. ) 
 
 Circular No. 635, issued to collectors, calling attention to the act of March 3, 
 1899, is not applicable to spirits produced and originally gauged on or after 
 January 1,' 1899, by which the allowance for loss of distilled spirits in bond 
 was expressly limited. (T. D. 601; December 3, 1902.) 
 
 The Commissioner issues to collectors and others concerned, internal-revenue 
 circular No. 596, setting forth instructions as to the preparation of claims for 
 the redemption of documentary and proprietary stamps issued under the war- 
 revenue law. (T. D. 305; March 22, 1901.) 
 Cancellation of beer stamps: 
 
 The Commissioner advises collectors in circular No. 605 that until September 1, 
 1901, the method of cancellation of beer stamps will continue to be by writing 
 or imprinting the name or initial letters thereof and date of cancellation on the 
 stamp as required by section 3342, Revised Statutes. Meantime, no objection 
 will be made to cancellation by perforation, as prescribed in circular No. 602, 
 amended by circular No. 604. (T. D. 381; July 16, 1901.) 
 Definition of mixed flour: 
 
 The definition of mixed flour under the act of March 2, 1901, is modified, the 
 Commissioner instructing collectors in circular No. 42 (Int. Rev. No. 600) that 
 on and after July 1, 1901, every person, firm, or corporation engaged in the 
 grinding or mixing together of wheat or wheat flour as the principal con- 
 stituent in quantity with any other grain, or the product of any other grain 
 or other material, except such material not exceeding 5 per cent in quantity, 
 and not the product of any grain as is commonly used for baking purposes, 
 shall be deemed a maker or manufacturer of "mixed flour." (T. D. 322; 
 April 9, 1901.) 
 
 Daily entries of the operations of grain distilleries must be rigidly kept by store- 
 keepers and storekeeper and gaugers to enable examining officers to discharge 
 in a satisfactory manner the duties imposed upon them. See circular 611. 
 (T. D. 438; December 3, 1901.) 
 Tax on merchandise from Porto Rico: 
 
 Circular No. 602, issued by the Commissioner in pursuance of the first section of 
 the act approved March 2, 1901, describing the method of cancellation of 
 internal-revenue stamps by perforations, etc. (T. D. 347; May 22, 1901.) 
 
 Internal-revenue circular No. 604, modifying circular No. 602 as to date when 
 the latter shall go into effect and as to the form of perforation permissible in 
 the cancellation of stamps. (T. D. 368; June 24, 1901. ) 
 
 Internal-revenue circular No. 578, revised, prescribes the character of reports 
 that should be made by collectors as to tax-paid spirits in hands of wholesale 
 • liquor dealers' and rectifiers October 1, 1901. (T. D. 397; August 7, 1901. ) 
 
 The act approved April 12, 1900, having abolished duties on merchandise and 
 articles coming into the United States from Porto Rico, so far as customs dues 
 are concerned, the Commissioner issues circular No. 81 (Int. Rev No. 606), 
 , setting forth regulations relative to the collection of internal-revenue taxes 
 
 which remain in force upon merchandise coming from said island. (T. D. 
 387; June 26, 1901.) 
 Exemptions of druggists : 
 
 Internal-revenue circular No. 608, as to exemptions of druggists from special tax 
 as liquor dealers by the provisions of section 3246, Revised Statutes: Sale of 
 malt extracts, bitters, and tonics. (T. D. 421; October 18, 1901.) 
 
56 
 
 Circulars — Continued . 
 Distilled spirits at ports of entry: 
 Circular No. 96 (Int. Rev. No. 609) calls the attention of collectors and export- 
 ers of distilled spirits in bond to the requirements of law (sec. 3330, Rev. Stat., 
 and amendatory act of June 9, 1874) and regulations (series 7, No. 4, arts. 20- 
 42) respecting the inspection, lading, and clearance of such spirits at ports of 
 entry. (T. D. 427; November 1, 1901.) 
 
 Distilled spirits, amended regulation as to marking: 
 
 Circular No. 136 (Int. Rev. No. 652) advises collectors of internal revenue that, 
 as a number of wholesale liquor dealers have expressed a preference for cutting 
 or burning, instead of stenciling, as the method of applying the required marks 
 to the heads of packages of distilled spirits, which method of cutting or burn- 
 ing gives results equally satisfactory with those accomplished by stenciling, 
 Department circular 126 (Int. Rev. No. 650) , of November 9, 1903, is so far 
 modified as to permit wholesale liquor dealers to affix the required marks by 
 legibly cutting or burning the same on the head of the package or by stencil- 
 ing. (T. D. 734; December 24, 1903.) 
 
 Circular No. 13 (Int. Rev. No. 591), addressed to collectors, extends the time 
 for filing returns with collectors by manufacturers of and wholesale dealers in 
 oleomargarine. (T. D. 281; February 15, 1901.) 
 
 The Commissioner issues to collectors circular No. 616, calling attention to 
 violations of law and regulations by rectifiers and wholesale liquor dealers. 
 (T. D. 455; January 2, 1902.) 
 
 Excessive losses of distilled spirits: 
 The attention of collectors is called in circular No. 618 to the requirements of 
 regulations No. 7, revised April 15, 1901, as to the visits of general storekeepers 
 and gangers in charge of distillery warehouses, in order to prevent excessive 
 losses from packages of distilled spirits lying in such warehouses. (T. D. 461; 
 January 14, 1902. ) 
 
 Brandy withdrawn from special bonded warehouses: 
 
 Collectors are instructed in circular No. 637 that, under section 45 of the act of 
 October 1, 1890, the privilege is accorded wine growers who are not distillers 
 of withdrawing brandy free of tax from special bonded warehouses to fortify 
 their wines, provided they are wine growers within the meaning of the law, 
 having a bona fide vineyard and in all other respects complying with office 
 regulations, series 7, No. 5, Revised Supplement No. 1. (T. D. 603; Decenf- 
 ber 15, 1902. ) 
 
 Shipments to Philippine Islands: 
 
 The Commissioner, with the approval of the Secretary of the Treasury, issues 
 circular No. 31 (Int. Rev. No. 619), relating to shipments to the Philippine 
 Islands subject to internal-revenue tax, under act of March 2, 1902, whereby 
 the regulations governing exportations are extended and made applicable' to 
 like articles shipped from the United States to the Philippine Islands in bond 
 or with benefit of drawback. (T. D. 491; March 21, 1902.) 
 
 The Commissioner directs, in circular No. 568, revised, that collectors shall 
 transmit their requisitions on Form 100 (revised 1902) for special-tax stamps 
 for the special-tax year commencing July 1, 1902, and ending June 30, 1903. 
 (T. D. 504; April 16, 1902.) 
 
 Preparation of refunding- claims: 
 
 Circular No. 78 (Int. Rev. No. 627), prescribing rules and regulations for the 
 preparation and disposal of claims for the refunding of taxes- paid by corpora- 
 tions, associations, societies, or individuals as trustees or executors upon 
 
57 
 
 Circulars— Continued . 
 Preparation of refunding claims — Continued. 
 
 bequests or legacies for uses of a religious, literary, charitable, or educational 
 character, etc., in pursuance of section 1, act of June 27, 1902. (T. D. 543; 
 July 3, 1902. ) 
 
 Rubber stamps for cancellation: 
 The Commissioner issues circular No. 94 (Int. Rev. No. 632), approved by the 
 Secretary of the Treasury, so modifying circular No. 9, revised June, 1902, as 
 to permit the use of a rubber stamp for the cancellation of tax-paid stamps for 
 renovated butter in lieu of a stencil plate of brass or of copper. (T. D. 561; 
 July 31, 1902.) 
 
 Instructions to retail dealers in oleomargarine: 
 Circular No. 414, revised December 3", 1902, issued to collectors in regard to 
 retail dealers in oleomargarine and containing extracts from the law and regu- 
 lations No. 9, revised. Collectors are instructed to place a copy of this circu- 
 lar in the hands of each person to whom a special-tax stamp, as dealer in 
 oleomargarine, is issued. (T. D. 600; December 3, 1902.) 
 
 Ee funding Philippine taxes: 
 Circular No. 77 (Int. Eev. No. 626) calls attention to rules and regulations for 
 the refunding of taxes paid upon articles shipped to the Philippine Islands 
 since November 15, 1901, in pursuance of the second paragraph of section 6, 
 act of JIarch 8, 1902, entitled " An act temporarily to provide revenue for the 
 Philippine Islands, and for other purposes." (T. D. 542; March 8, 1902.) 
 
 Instructions as to legacies: 
 
 Circular No. 630, issued to collectors, setting forth general instructions relative to 
 legacies under section 3, act of June 27, 1902, entitled "An act to provide for 
 refunding taxes paid upon legacies and bequests for uses of a religious, char- 
 itable, or educational character, for the encouragement of art, etc., under the 
 act of June 13, 1898." All instructions in this circular inconsistent with the 
 opinion of the Attorney-General, August 1, 1902, have been revoked. (See 
 T. D. 570.) (T. D. 552; July 15, 1902.) 
 
 Transfer of deposits: 
 Circular No. 624, issued to collectors, conveys additional instructions relative to 
 reporting collections on Form 58, in cases where money, having been depos- 
 ited to the credit of the Secretary of the Treasury, is transferred to the credit 
 of the Treasurer of the United States in favor of a collector by check of the 
 Secretary of the Treasury. (T. D. 512; April 29, 1902.) 
 
 Executive order, preference of veterans: 
 
 Circular No. 87 (Int. Eev. No. 644) is issued, directing attention to the Executive 
 order dated January 17, 1902, wherein the President desires that, wherever 
 the needs of the service will justify it and the law permit, preference shall be 
 given alike in appointment and retention to honorably discharged veterans of 
 the civil war who are fit and well qualified to perform the duties of the places 
 which they seek or are filling. (T. D. 681; July 18, 1903.) 
 
 Lists of leaf -tobacco dealers: 
 
 Collectors are advised in circular No. 649, in reporting lists of leaf-tobacco dealers 
 in their districts on Forms 144 and 146, that, in all cases of losses of tobacco or 
 of tobacco products, by fire, theft, or other casualty, upon which the owners 
 will base a claim for credit in their accounts, the parties suffering such losses 
 should immediately report the facts to the collector of their district in order 
 that he may make the necessary investigation. (T. D. 710; October 1 7, 1903. ) 
 
58 
 
 Circulars — Continued. 
 Oleomargarine — Instructions to dealers: 
 
 Collectors are notified by circular8(Int.Rev.No. 639) that that part of regulations 
 No. 9, revised June, 1902, contained in the last paragraph on page 30, is hereby 
 modified so as to permit the use of a rubber stamp for cancellation of tax-paid 
 stamps for oleomargarine, in lieu of a stencil plate of brass or copper, as now 
 required. 
 
 The rubber stamp must contain the five parallel waved lines of sufficient length 
 to extend over and beyond each side of the stamp onto the wood of the pack- 
 ages, and the printing must be distinct. (T. D. 614; January 12, 1903.) 
 
 Redemption of stamps: 
 Internal-revenue circular 596, revised October 1, 1903, rules that unused docu- 
 mentary and proprietary stamps, issued under the provisions of the war-revenue 
 act, approved June 13, 1898, for which the owners have no use, may be 
 redeemed, but in all cases there will be deducted the percentage, if any, 
 allowed the purchaser. Application for the redemption of such stamps should 
 be made to the collector of internal revenue from whom the same were pur- 
 chased, who will supply the applicant with Form 38 and necessary instructions 
 relative to the preparation of his claim. (T. D. 704; October 1, 1903.) 
 
 Special tax — Sale of beverages: 
 
 [Internal-revenue circular 640, relating to the liability to special tax of druggists 
 and other persons who sell soda-water drinks, or similar beverages, to which 
 distilled spirits, wines, or any compounds thereof are added. Amendatory to 
 and explanatory of circular 636.] (T. D. 624; January 24, 1903.) 
 Exposure of official records prohibited: 
 
 Circular No. 651 is issued, calling the attention of internal-revenue collectors, 
 district attorneys, and all others concerned, to regulations No. 12, prohibiting 
 the giving out, by collectors, of information contained in the records of their 
 offices, or copies thereof, for purposes not contemplated by the internal-revenue 
 laws. (T. D. 727; December 10, 1903.) 
 The use of names on special-tax stamps: 
 
 Collectors are instructed, by circular No. 641, to inform all dealers located in 
 their districts that they will save themselves trouble and possible expense if 
 in ordering oleomargarine the name or names used are those appearing on 
 their special-tax stamps, and that the law and regulations must be strictly 
 complied with. This ruling applies equally to all dealers purchasing oleomar- 
 garine, whether individuals, firms, or corporations, or members of such mak- 
 ing purchases of oleomargarine for sale by their respective firms or corporations. 
 (T. D. 631; February 26, 1903.) 
 Delays in regauging bonded spirits: 
 
 Internal-revenue circular 645 directs the attention of collectors to the delays 
 that have occurred in filing applications for regauge of bonded spirits for leak- 
 age allowance, under the provisions of section 50, act of August 28, 1894, and 
 the act of January 13, 1903. Collectors are advised that requests for a regauge 
 will in no case be accepted unless filed in the time limited by statute. Appli- 
 cations based upon alleged accident, oversight, or other cause, will not be 
 considered. (T. D. 687; July 30, 1903.) 
 Distilled spirits, regulations as to marking, amended: 
 
 Circular No. 126 (Int. Rev. No. 650) instructs collectors of internal revenue and 
 others appertaining to amendment of regulations governing the marking on 
 and after January 1, 1904, of packages of distilled spirits put up by wholesale 
 liquor dealers. (T. D. 716; November 9, 1903.) 
 
59 
 
 Circulars— Continued. 
 
 Amendment of section 325S, Revised Statutes: 
 Commissioner calls attention to the act amending section 3255 of the Revised 
 Statutes, stating exemptions allowed distillers of brandy from fruits. (T. D. 
 275; February 9, 1901.) 
 Distilled spirits, regulations as to marking, amended — Continued. 
 Circular No. 597, issued by the Commissioner, prohibits the unlawful designa- 
 tion by collectors of temporary storekeepers and storekeeper-gaugers to fill 
 vacancies. (T. D. 306; March 22, 1901.) 
 Circular No. 598, as to special taxes of second-class brokers, dealers, and traders, 
 and taxes on transactions set out in paragraphs 2 and 3 of Schedule A, act of 
 March 2, 1901. (T. D. 318; April 3, 1901.) 
 Section 3255, Revised Statutes: 
 Circular No. 17 (Int. Rev. No. 592) issued in pursuance of section 3255, Revised 
 Statutes, as amended by the act approved February 4, 1901, exempting dis- 
 tillers of brandy from figs or cherries from those provisions of the law from 
 which distillers of brandy from certain other fruits have been exempted. 
 (T. D. 288; February 23, 1901.) 
 
 Circular letters. 
 
 Fruit distillers' returns, Form 15: 
 Fruit distillers are required to report monthly on Form 15, revised April 22, 
 1901, all brandy sold or removed during the month, giving the information in 
 detail as indicated by the subheadings of the various columns under the gen- 
 eral heading, ' ' Brandy sold or removed. ' ' The regulations require the returns 
 to be made until all brandy has been sold or removed, even though the stills 
 may have been registered not for use. (T. D. 745; January 29, 1904.) 
 Receipts for moneys paid by clerks of courts: 
 Collectors are directed to use Form 540, in receipting to clerks of courts for 
 money paid over to them in internal-revenue cases under section 3216, Revised 
 Statutes. (T.iD. 754; February 27, 1904.) 
 Renovated-butter stamps: 
 Collectors are notified that, in regard to tax-paid stamps, manufacturers of reno- 
 vated butter are required to insert in the renovated-butter stamps affixed by 
 them, in the space provided for that purpose, the date when cancelled. (T. D. 
 773; April 11, 1904.) 
 Circular letter is sent by the Commissioner to collectors, instructing them that, 
 under existing laws, it is not possible to return checks to the owners after the 
 imprinted stamps have been redeemed, but they will be preserved subject to 
 future action of Congress. (T. D. 403; August 13, 1901.) 
 Surplus proceeds of distrained property: 
 Collectors are advised by Commissioner's letter that, in conformity with a 
 decision of the Comptroller of the Treasury, in cases of the surplus proceeds of 
 property distrained and sold under internal-revenue laws for nonpayment of 
 taxes, the legal title being in doubt, pending the investigation as to the proper 
 claimant, such proceeds can not be returned to the person entitled to receive 
 the same, but must be deposited to the credit of the Treasurer of the United 
 States. (T. D. 390; July 21, 1901.) 
 Revision of Form 45: 
 Collectors are informed that Form 45 has been revised so as to better adapt it to 
 the regulations governing the subject of rectification, but will be continued in 
 use until the returns for June, 1901, are all in. (T. D. 353; June 3, 1901.) 
 
60 
 
 Circular letters — Continued. 
 Revision of Form 45 — Continued. 
 
 Commissioner issues circular letter to collectors of internal revenue, calling atten- 
 tion to the amended tax list under the act of March 2, 1901, repealing certain 
 taxes on and after July 1, 1901. (T. D. 325; April 17, 1901. ) 
 
 Commissioner issues circular to collectors notifying them that it is not necessary 
 to procure separate certificates of deposit for sums realized from the sales of 
 real estate, and that the same should be included in their regular daily certifi- 
 cate. (T. D. 278; February 12, 1901. ) 
 
 United States district attorneys are instructed that there should be no unneces- 
 sary delay in proceedings to enforce collection of judgments when obtained. 
 District attorneys should exercise vigilence to guard the interests of the Gov- 
 ernment, and should not consider that their duties in the case are concluded 
 until the amounts of the judgments are collected, where collections are possi- 
 ble, and the moneys paid into the registry of the court and thence into the 
 Treasury of the United States. (T. D. 348; May 23, 1901.) 
 
 United States attorneys will notify the Commissioner of Internal Revenue when 
 an indictment is found against any officer of internal revenue. (T. D. 450; 
 December 18, 1901.) 
 United States marshals — Judgment creditors. 
 
 On the 1st day of October United States marshals will report to the Commissioner 
 of Internal Revenue the status of all judgment debtors of the United States 
 under the internal-revenue laws within their respective districts as ascertained 
 -or known to them. (T. D. 703; September 28, 1903.) 
 
 The Commissioner calls the especial attention of collectors to the following 
 instructions relative to the preparing and filing of bonds, notices, and inven- 
 tories by manufacturers of oleomargarine and renovated butter, viz: Section 
 5, act of August 2, 1886; section 4, act of May 9, 1902, and regulations No. 9, 
 page 20, paragraph 1; page 24, paragraph 1, and page 92, paragraph 9. (T. D. 
 673; June 27, 1903.) 
 
 Compromise cases: 
 Offers of compromise in revenue-tax suits should include payment of costs, and 
 the costs should be deposited in advance, in order to prevent any misunder- 
 standing. (T. D. 642; March 20, 1903.) 
 
 Distilled spirits — Imitation stamps: 
 Circular letter addressed to collectors, relative to caution labels on packages of 
 distilled spirits, in similitude of or having the resemblance or general appear- 
 ance of an internal-revenue stamp, calling attention to circular 638. (T. D. 
 647; April 3, 1903.) 
 
 Distillers' annual bonds: 
 Collectors are instructed that the rights of distillers, under their present bonds, 
 cease with the 30th of April, 1903, and those desiring to continue business after 
 that date must give new notices and execute new bonds. These papers should 
 be prepared and submitted a sufficient time in advance of May 1 to enable col- 
 lectors to investigate and approve the bonds. (T. D. 650; April 6, 1903.) 
 
 Assessments for deficiencies: 
 Assessments for deficiencies are predicated, in part, on the inventories which, 
 under sections 3358 and 3390, Revised Statutes, manufacturers of tobacco and of 
 cigars are required to make of their stock on the first day of January each year, 
 and it is essential that all doubt as to the accuracy of an inventory shall be 
 removed before the new accounts for the succeeding year are formally opened. 
 (T. D. 726; December 9, 1903.) 
 
61 
 
 Circular letters— Continued. 
 
 Assessments for deficiencies — Continued. 
 
 Collectors are given particular instructions relative to making reports on Form 
 22, inasmuch as reports on that form contain data from which is obtained 
 statistical information for the annual report of the Commissioner of'Internal 
 Revenue. It is important that collections be classified correctly. (T. D. 565; 
 August 13, 1902.) 
 Cigars and tobacco — Inventory: 
 
 Collectors are instructed that the stocks inventoried by manufacturers of cigars 
 and tobacco on January 1 next shall be examined and each inventory verified 
 by a deputy collector, and Forms 144 and 146 should be prepared and for- 
 warded to the office within ninety days from the 1st day of -January. (T. D. 
 726; December 9, 1903.) 
 Decrease in mixed flour revenue: 
 
 Collectors are informed by circular letter that, for six months ended December 
 3, 1901, a material falling off in the revenue derived from mixed flour appears, 
 as compared with the same period of the previous year, and, in order to learn 
 the cause of the decrease, especial attention of collectors is called to regulations 
 No. 25, and Circular 600, with the request that they institute a thorough can- 
 vass of their respective districts, with a view of ascertaining whether mixed 
 flour is being manufactured and placed on the market without full compliance 
 with the law. (T. D. 471; February 6, 1902.) 
 Violations of revenue laws: 
 
 Where violations of internal revenue laws are involved, each case shall be con- 
 sidered and determined on its merits, irrespective of cost of investigation. As 
 a rule, however, the sum tendered should not be less than the expense incurred 
 by the Government in connection with the case. Internal revenue officers 
 not to advise acceptance of offers of $5 except in extreme cases. (T. D. 496; 
 April 2, 1902. ) 
 Imported cigars — Stamp tax: 
 
 The Secretary of the Treasury advises collectors that section 2804, Revised Stat- 
 utes, as amended by section 25, act of August 28, 1894, requires the inspec- 
 tion and stamping of imported cigars before delivery from customs custody. 
 Therefore, ' ' Cigars from the Philippine Islands should be stamped with customs 
 stamps like cigars imported from foreign countries, and the word 'Philippines' 
 should be placed on the stamps by way of destination." (T. D. 582; September 
 23,1902.) 
 Instructions by Secretary of Agriculture: 
 
 Collectors are notified by circular letter that the Secretary of Agriculture has 
 issued instructions to all inspectors, officers, or agents of his Department, 
 requiring them to render every possible assistance to officers or agents of this 
 Bureau in connection with the manufacture of renovated butter. As the 
 supervision of this business is required tp be carried on jointly between the 
 two Departments, collectors will instruct their deputies to confer with and 
 assist the officers of the Agricultural Department intrusted with this work. 
 (T. D. 550; July 14, 1902.) 
 Monthly reports on renovated butter: 
 
 Collectors are instructed in circular, that, in making manufacturers' monthly 
 reports of renovated butter, on Form 499, and in collectors' monthly statement 
 of renovated-butter accounts, on Form 515, in all instances, only the actual and 
 not estimated weights be given. Any fractional part of a pound in a package 
 shall be taxed as a pound. (T. D. 606; December 15, 1902.) 
 
62 
 
 Cigarette stamps, etc. 
 
 Difference in cigarette stamps: 
 Cigarettes and small cigars, weighing not more than 3 pounds per thousand, 
 must be put up in boxes containing 10, 20, 50, or 100 cigarettes each, and each 
 box must be properly stamped. The caution-notice label and brands must 
 appear on the carton in which small stamped packages are repacked. (T. D. 
 651; April 8, 1903.) 
 The Commissioner, in letter to all officers of internal revenue, defines the differ- 
 ence between cigarette stamps representing tax of 54 cents per thousand and 
 those representing tax of $1.08 per thousand. (T. D. 433; November 1 6, 1901.) 
 
 Revised internal-revenue records: 
 
 Commissioner, in letter to collectors of internal revenue, referring to the act of 
 March 2, 1901, imposing new rates of tax, beginning on and after July 1, 1901, 
 gives instructions as to revised internal-revenue records relating to the sale 
 of stamps for beer, cigars, cigarettes, tobacco, and snuff, and special taxes. 
 (T. D. 360; June 18, 1901.) 
 Stating accounts: 
 
 The entire material account should be stated in columns 1 to 10, inclusive, 
 relating to cigarettes, tax paid at the rate of $1.08 per thousand, deducting 
 from columns 9 and 10 the quantity of tobacco used in making cigarettes, tax 
 paid at the rate of 54 cents per thousand, allowing 5 pounds of unstemmed or 
 3 pounds of stemmed leaf used in manufacturing 1,000 cigarettes. (T. D. 463; 
 January 24, 1902.) 
 Tax on wholesale price: 
 
 Tax may be paid on cigarettes according to their wholesale value or price. If 
 cigarettes are sold by the manufacturer in the usual course of trade at $2 or 
 less per thousand, properly stamped, collectors may sell stamps for payment 
 of tax on such cigarettes at the rate of 54 cents per thousand. (T. D. 571; 
 August 27, 1902. ) 
 Cigar boxes. 
 
 Removal of cigar-box covers: 
 
 A box of cigars without a cover is not a statutory package. A considerable part 
 of the stamp and possibly, also, the brand and caution notice is missing. 
 Prima facie, as the box has' but part of a stamp upon it, it is liable to forfeiture 
 under section 3398, Revised Statutes. The evidence of tax payment is the 
 stamp. It is therefore to the interest of dealers as well as of the Govern- 
 ment, according to a ruling made November 23, 1903, that cigars should be 
 kept under cover of the stamp, marks, and brands in complete form. (T. D. 
 724; Decembers, 1903.) 
 
 Cigars upon which tax has been paid may be returned to the factory and re- 
 packed and restamped, and after inspection must be accounted for on book 73 
 and monthly return, Form 72, separately from other cigars. The total num- 
 ber of cigars to be accounted, for during that month will include the number 
 on hand at the beginning of the month and the number returned to the factory 
 to be repacked and restamped and the number manufactured each day during 
 the month, all of which cigars must be tax paid before removal from the fac- 
 tory. (T. D. 680; July 14, 1903.) 
 
 Cigar boxes which have never been used for packing cigars, but are intended for 
 display in advertising, while not prohibited by law, are objectionable, and 
 their use should be discouraged. (T. D. 713; November 3, 1903.) 
 Cigar coupons: 
 
 Small advertising cards, coupons, and circulars placed by manufacturers in 
 boxes containing cigars must relate to their business and advertise their cigars 
 
63 
 
 Cigar boxes— Continued. 
 Cigar coupons— Continued. 
 
 and not relate to or advertise the business of other persons. The manufac- 
 turer's name, address, and registered factory number must appear printed on 
 each card, coupon, and circular placed in statutory boxes containing cigars 
 (T. D. 572; August 27, 1902.) 
 Containers for cigars — Mast be boxes: 
 
 Containers or other receptacles for packing cigars which are not in the form of 
 boxes, with a lid or cover, are illegal and liable to seizure and forfeiture. 
 Mere rolls or wrappers of paper of other fibrous material, such as the leaves 
 of the Jagua palm, tied at each end, are not regarded as boxes within the 
 meaning of the statutes. (T. D. 738; January 6, 1904.) 
 
 Foreign articles in boxes of cigars, such as small match attached to each cigar 
 by means of paper band, under section 3394, Eevised Statutes, as amended by 
 section 10, act of July 24, 1897, and further by section 2, act of July 1, 1902, 
 not permitted. (T. D. 722; November 30, 1903.) 
 
 Cigar-box covers may be sawed or cut off at the inner edge of the stamp, and 
 the part of the cover without the stamp be placed under the box without vio- 
 lation of law, the remaining portion of the cover, having the stamp attached, 
 to remain on the box until emptied and the stamp destroyed. (T. D. 788; 
 May 17, 1904.) 
 Subdivisions or parcels of packages of cigars: 
 
 The regulations not construed as prohibiting the tin foil or wax-paper wrappings, 
 inclosing subdivisions or parcels of packages of cigars, weighing more than 3 
 pounds per thousand, from being turned over or closed at both ends. The 
 provision requiring subdivisions to be open at one end applies to wrappers or 
 inclosures other than those mentioned. (T. D. 815; August 22, 1904.) 
 
 The placing of one or more cigars in a separate box to be forwarded by mail or 
 express or otherwise as a sample to prospective customers, whether such cigars 
 are taken from stamped packages or not, is illegal, and can not be authorized 
 nor permitted under the law. The sale, or offering for sale, or keeping for 
 sale, of cigars in boxes not bearing the proper internal-revenue stamp is pro- 
 hibited by section 3398, Revised Statutes. (T. D. 731; December 18, 1903.) 
 Stamping, branding, and labeling: 
 
 Under existing regulations it is held that boxes of cigarettes or little cigars in 
 denominations 10 and 20 when properly stamped, the stamp duly canceled or 
 so affixed that the package can not be opened without breaking the stamp, 
 the caution notice printed thereon as well as the factory brand, showing the 
 number of the factory, district, and State, and the number of cigarettes or 
 cigars contained therein, are complete statutory packages in themselves, and 
 the boxes or cartons in which they are packed are mere shipping cases which 
 are not required to be branded or labeled, but if the caution notice, label, or 
 the factory brand is omitted from the stamped packages then the caution 
 notice and factory brand must appear on the carton; otherwise the packages 
 are illegal. (T. D. 825; September 6, 1904.) 
 
 Cigar manufacturer. 
 Bond of a minor: 
 Where a son who is a minor undertakes to conduct the business of a cigar man- 
 ufacturer in place of his deceased father until an administrator on his father's 
 estate shall be appointed and qualified, it is necessary that he shall first give 
 a bond, with approved security, lasting during the interval indicated. The 
 administrator, when appointed, must give a new bond of his own. (T. D. 792; 
 May 26, 1904.) 
 
64 
 
 Cigar manufacturer — Continued. 
 Cigar manufacturers' signs: 
 Under section 3388, Revised Statutes, the sign of a cigar manufacturer is required 
 to be printed in the English language. No other construction can be reason- 
 ably given to the statute. (T. D. 811; July 18, 1904.) 
 Cigars and snuff — Outside packages: 
 Sections 3363, 3366, 3374, and 3404, Revised Statutes, permit the sale of manu- 
 factured tobacco, snuff, cigars, and cigarettes by retail dealers from the original 
 manufacturer's stamped packages only (seelnt. Rev. Circular 643), and manu- 
 factured tobacco, snuff, cigars, and cigarettes found on the market outside of 
 the manufacturer's packages in which they were originally packed are subject 
 to seizure and forfeiture, and the person in whose possession th,e same are 
 found is liable to prosecution and, on conviction, to heavy fines and imprison- 
 ment. (T. D. 678; July 14, 1903.) 
 Cutting and furnishing cigar wrappers: 
 Cigar wrappers, cut and furnished to cigar manufacturers by leaf dealers, held 
 to be manufactured tobacco, and dealers in leaf so manipulating their leaf 
 tobacco must qualify as manufacturers of tobacco. (T. D. 775; April 12, 19*04.) 
 Sureties on bond: 
 Section 3387, Revised Statutes, provides that a cigar manufacturer shall give a 
 bond in such penal sum as the collector may require, not less than $100, and 
 the sum of said bond may be increased from time to time, and additional 
 sureties required, at the discretion of the collector or under the instructions of 
 the Commissioner of Internal Revenue . (T. D. 740; January 9, 1904.) 
 Cigars — Tax. 
 Discount allowances: 
 The act of March 2, 1901, imposes new rates of tax on beer, cigars, and cigarettes, 
 allowing a discount to manufacturers on all sales of tobacco and snuff, the 
 changes taking effect on and after July 1, 1901. (T. D. 360; June 18, 1901. ) 
 Inspection of merchandise from Forto Rico: 
 
 As articles of merchandise received from Porto Rico are not now subject to 
 customs duties, cigars, cigarettes, or other articles subject to internal-revenue 
 tax, found in the baggage of passengers from Porto Rico will be detained by 
 the inspector in charge until the character of the internal-revenue stamps 
 required shall be clearly indicated to the owner of the cigars. See circular 
 No. 85 (Int. Rev. No. 607). (T. D. 407; August 22, 1901.) 
 Imitation packages: 
 Packages put up in imitation of statutory packages of tobacco or cigars and bear- 
 ing statutory labels and imitation stamps are unlawful packages and subject to 
 forfeiture. A manufacturer should not use dummy packages which are a 
 counterpart of his statutory packages. (T. D. 312; March 26, 1901.) 
 Manufacturers required to put up their domestic cigars in boxes not before used 
 for that purpose. If boxes are made from some material other than wood, 
 the manufacturer is required to submit a sample box to the Commissioner for 
 his approval. Glass jars are not approved as substitutes for wooden boxes for 
 packing cigars. (T. D. 332; April 25, 1901. ) 
 Circuses. (See also Exhibitions and shows; and Decisions 19799, 19830, 19960.) 
 A show under canvas exhibiting, among other things, acrobatic and athletic 
 exercises, but no feats of horsemanship, and having no menagerie, is not sub- 
 ject to special tax as a circus ($100) under paragraph 7 of section 2, act of June 
 13, 1898, if the acrobatic exercises are so few and simple as to make it 
 unreasonable to hold that they constitute the show a circus. (T. D. 19944; 
 August 24, 1898. ) 
 
65 
 
 Circuses— Continued. 
 
 A small wagon show having no "circus feats," but only " such acts as trapeze, 
 wire walking, trained ponies, singing, and dancing," is not to be regarded as 
 a circus within the meaning and intent of paragraph 7 of section 2, act of June 
 13, 1898. It is a show coming under the eighth paragraph, for which the 
 special tax of $10 is required to be paid. (T. D. 19975; August 30, 1898.) 
 
 Special taxes are required to be paid by small theatrical companies, as well as 
 by circuses and other exhibitions. (T. D. 19602; June 28, 1898.) 
 
 The provisions of paragraph 7, section 2, act of June 13, 1898, require the pay- 
 ment of special tax ($100) not by circuses only, but by all shows traveling in 
 the United States and coming within the definition of a circus therein given, 
 viz, that "every building, space, tent, or area where feats of horsemanship or 
 acrobatic sports or theatrical performances are exhibited, shall be regarded as 
 a circus." (T. D. 19761; July 26, 1898.) 
 
 Circulation tax. 
 
 A bank does not become subject to ths tax of 10 per centi under section 20, act of 
 February 8, 1875, for merely receiving on deposit Canadian bank notes that 
 had been used for circulation. It is only when it pays out in the United 
 States these notes that it is required to pay this tax. (T. D. 242; November 9, 
 1900.) 
 
 Banks in the United States receiving on deposit and paying out Mexican bank 
 notes which have not been, nor are at any time, used for circulation in the 
 United States, are not required to pay a tax of 10 per cent thereon under sec- 
 tion 20, act of February 8, 1875. (T. D. 257; December 14, 1900.) 
 
 Whenever Canadian bank notes or any notes, foreign or domestic, other than 
 
 . national-bank notes, are used for circulation in the United States, any bank 
 
 receiving such notes and paying them out again in the United States is required 
 
 to pay the tax of 10 per cent under section 20, act of February 8, 1875. (T. D. 
 
 181; July 23, 1900.) 
 
 Charter parties — Stamp tax. 
 
 Charter parties that are enrolled under Title L of the Revised Statutes are exempt 
 
 • from tax under the principles announced August 3, 1898, when plying between 
 
 ports in the United States and those of Porto Rico. (T. D. 118; May 4, 1900. ) 
 
 Where more than one vessel is chartered under one charter party, the tax accrues 
 
 on the basis of the net registered tonnage of each vessel. (T. D. 25; January 
 
 27, 1900.) 
 
 Imprinted tobacco stamps: 
 Collectors are advised that manufacturers of tobacco desiring to use stamped tin- 
 foil wrappers may forward estimates of the amounts they severally desire 
 printed for early use to the collectors of their respective districts. Upon 
 receipt of such estimates, collectors will make an entry of the same in a record 
 kept for that purpose, specifying the name of the manufacturer, the number 
 and denomination of the stamps desired, and the stamp agent to whom the 
 order will be referred, and w ; 'I then forward to this office a request for the 
 imprinting of the stamped wrappers, setting forth in full the facts contained in 
 the entry aforesaid. (T. D. 616; January 14, 1903.) 
 
 Hours of labor in collectors' offices: 
 
 Collectors of internal revenue are notified by the Commissioner, in circular 655, 
 
 of the order issued by the Secretary of the Treasury fixing the hours of labor 
 
 in the Department from' 9 a. m. to 4.30 p. m., with an allowance of one-half 
 
 hour for luncheon, on and after January 11, 1904. (T. D. 756; March 1, 1904.) 
 
 31331—05 5 
 
66 
 
 Charter parties — Stamp tax — Continued. 
 Modification of circular 655 as to hoars of labor: 
 Circular No. 656 issued, calling the attention of collectors to the amendment of 
 Treasury decision 24878, so that the hours of labor may conform to the, busi- 
 ness custom of the vicinity in which their offices are located, observing, how- 
 ever, the rule of keeping their offices open for the transaction of business at 
 least seven and one-half hours each day, except on such days as by order of 
 the Secretary they may be closed at 1 o'clock to meet local conditions as to 
 places of deposit. (T. D. 769; April 1, 1904.) 
 
 Circular letters to collectors. 
 
 Recommendations for promotion, demotion, suspension: 
 The attention of collectors is called to Department circular 118, dated October 
 6, 1903, regarding promotions, demotions, or reductions in grade, suspensions, 
 and resignations of officers, clerks, and employees of the Treasury Depart- 
 ment, and requiring a report as to the date of last promotion, the class of work 
 done, the aptitude for the general 'service "of the office, the standing as to . 
 punctuality, attendance, attention to duty, etc. (T. D. 711; October 19, 1903.) 
 
 Sebate on packages of tobacco and snuff: 
 The attention of collectors is called to the act of March 3, 1903, relating to the 
 payment of rebate of tax on snuff and tobacco under the act of April 12, 1902, 
 providing that claims for rebate should be inventoried on July 1, 1902, but 
 forbidding the payment of them unless presented prior to April 1, 1903. All 
 claims included in these provisions and presented prior to April 1, 1903, will 
 be received and forwarded the same as if regularly presented within sixty 
 days after July 1, 1902. (T. D. 634; March 5, 1903.) 
 
 Seizures of property and advertising: 
 
 Collectors are advised by circular as to incurring expenses for advertising in 
 connection with seizures for violation of law, or under distraint, under any 
 section of the statutes, and are enjoined against unnecessary delays in making 
 sales, providing against postponement beyond the statutory period, and making 
 reports promptly at the end of each quarter on Form 474. (T. D. 623; Janu- 
 ary 23, 1903. ) " 
 Special-tax stamps: 
 
 The Commissioner issues circular to collectors relating to requisitions on Form 
 100 for special-tax stamps for the special-tax year commencing July 1, 1903, 
 and ending June 30, 1904. (T. D. 656; April 16, 1903.) 
 Transcripts of leaf-tobacco dealers' books: 
 
 Collectors are instructed relative to transcripts of the books of leaf-tobacco 
 dealers (No. 59). They are advised that in the preparation of quarterly tran- 
 scripts of these books on Form 434 entries of all sales to purchasers in one 
 district should be made separately from sales to other districts — that is, the 
 transcripts should not embrace more than one district, separate sheets being 
 used for each district. (T. D. 675; July 3, 1903.) 
 Sales of leaf tobacco — Book 59: 
 
 In all cases where tobacco is for any reason returned to the seller by the con- 
 signee, proper entries should be made in Book 59 canceling or explaining the 
 transaction so that the purchaser will not be held accountable for the tobacco 
 so returned. (See regulations No. 8, page 18, relating to tobacco returned to 
 dealers.) (T. D. 826; September 8; 1904.) 
 Serial numbers on cases of distilled spirits: 
 
 Circular No. 71 (Int. Rev. No. 660) instructs collectors that in view of the pro- 
 visions made in circular 631 of July 18, 1902, for the use of the same bottling 
 
67 
 
 Circular letters to collectors — Continued. 
 
 Serial numbers on cases of distilled spirits — Continued. 
 
 warehouse by different distillers having spirits stored in different warehouses 
 on the same distillery premises, arid in order to secure uniformity in the matter 
 of numbering cases containing spirits bottled on the same distillery premises, 
 such cases will hereafter be numbered consecutively, as provided in circular 
 546, as to original packages containing spirits produced by different distillers 
 at the same distillery. (T. D. 805; July 6, 1904.) 
 
 Supplemental regulations as to withdrawal of distilled spirits: 
 
 Departmental circular No. 104 sets forth supplemental regulations governing 
 withdrawal of distilled spirits from bonded warehouse for use of the United 
 States, free of tax, under provisions of section 3464, Revised Statutes. (T. D. 
 848; December 23, 1904.) 
 
 Temporary appointments: 
 Temporary appointments in cases of emergency must be promptly reported by 
 collectors on Form No. 241, that proper action may be taken. (T. D. 791; 
 May 24, 1904). 
 
 Revenue officers acting as book agents: 
 
 Circular No. 665, as to the prohibition of revenue officers acting as agents for the 
 sale of books to distillers, brewers, and others, denounces the practice as detri- 
 mental to the public service and against the interests of the Government. 
 (T. D. 831; October 6, 1904.) 
 
 Internal Revenue circular 654 contains instructions extending regulations con- 
 cerning reduction in proof of spirits in distillers' original packages and allow- 
 ing additional compensation in certain cases to gaugers who reinspect spirits 
 after reduction, so as to apply to said original packages after they have been 
 removed tax paid, and are still in possession of the distiller at his free ware- 
 house. (T. D. 748; February 3, 1904.) 
 Special-tax stamps for year ending June 30, 1905: 
 
 The Commissioner issues circular letter instructing collectors as to requisitions 
 on Form 100 (revised 1902) for special-tax stamps for the special-tax year 
 commencing July 1, 1904, and ending June 30, 1905. Collectors are directed 
 not to issue special-tax stamps for the special-tax year ending June 30, 1905, 
 until Form 11, properly filled out, and the money for the stamps have been 
 received; and the stamps must be issued in consecutive order, the dates upon the 
 stubs so indicating. (T. D. 777; April 16, 1904.) 
 Revising circular 84 (Int. Rev. No. 628) and modifying regulations: 
 
 Department circular 84 (Int. Rev. No. 628) prescribed rules and regulations for 
 the preparation of claims for refunding amounts paid for documentary stamps 
 on export bills of lading under the act of June 13, 1898, and regulations pre- 
 scribed January 3, 1903, published as regulations No. 14, revised, revised said 
 circular and provided additional requirements in preparing said claims, to wit, 
 that each claim should be accompanied by a schedule of the bills of lading, 
 giving date, kind of goods, port from which and to which the shipments were 
 made, the names of the consignor and the consignee, and the means of trans- 
 portation employed, giving the name of the vessel. This requirement was to 
 prevent the allowance of duplicate claims. (T. D. 819; August 24, 1904.) 
 
 Circular No. 666 is issued, giving notice of change in name of bank to which 
 remittances for gauging rods must be made. (T. D. 840; November 4, 1904.) 
 Checks, orders, certificates of deposit— Stamp tax. 
 
 Checks on banks, issued by clerks of United States courts and State courts by 
 direction or authority of the court, are exempt from taxation. (T. D. 131; 
 May 19, 1900. ) 
 
68 
 
 Checks, orders, certificates of deposit — Stamp tax — Continued. 
 
 Orders for the payment of money are required to be stamped, although intended 
 merely as receipts or vouchers. The drawer of the order is liable for the 
 stamp, but, besides this, the maker, or party for whose use or benefit the 
 order shall be made, signed, or issued, is liable also. (See decision of United 
 States circuit court, district of South Carolina, in Granby Mercantile Company 
 v. E. A. Webster.) (T. D. 3; December 30, 1900.) 
 
 Receipts for insurance premiums, gas, water, telephone bills, and the like, when 
 paid by banks and charged to depositors' accounts, must have a 2-cent stamp 
 affixed thereto as orders for payment of money. (T. D. 24; January 25, 1900. ) 
 
 When rent notes pass from lessee to lessor in payment of rent they are not tax- 
 able as leases; if payable in money, they are taxable as promissory notes; if 
 payable in merchandise, no tax accrues. (T. D. 36; February 7, 1900.) 
 
 Time drafts drawn on persons in the island of Porto Rico are taxable under the 
 paragraph in Schedule A of the war-revenue act relating to inland bills of 
 exchange. (T. D. 252; December 3, 1900.) 
 Checks of trustees : 
 
 Checks of referees and trustees, when given in pursuance of payments in bank- 
 ruptcy proceedings, are exempt from taxation, under provisions of section 17, 
 act June 13, 1898. (T. D- 188; July 27, 1900.) 
 
 Certificates of deposit drawn otherwise thanTit sight or on demand presumed to 
 draw interest, unless affirmative evidence to the contrary appears, and is tax- 
 able at the rate of 2 cents for each hundred dollars or fractional part thereof. 
 (T. D. 195; August 8, 1900.) 
 Checks for circulation : 
 
 Checks made for circulation as money, as bank checks, are subject to tax by 
 section 3408, Revised Statutes; and section 3583 makes it a criminal offense to 
 issue checks "for a less sum than $1 intended to circulate as money, or to be 
 received or used in lieu of lawful money of the United States." (T. D. 199; 
 August 15, 1900. ) 
 Checks and drafts imprinted. 
 
 Imprinted checks and drafts can not now be returned to the owners after redemp- 
 tion of the stamps thereon. The act of Congress approved February 26, 1902, 
 under the provisions of which imprinted instruments were returned to the 
 owners thereof, authorizes such action only "where said return is demanded 
 within one year after the passage of this act." (T. D. 692; August 27, 1903.) 
 Chewing gum — Stamp tax. 
 Removal from stamped packages: 
 
 Glass cases, when emptied, may be reused for packing chewing gum, but the 
 stamps first affixed to the packages must be destroyed before the case is reused. 
 (T. D. 20258; October 25, 1898.) ' 
 
 Manufacturers of chewing gum are not privileged to remove the same from 
 stamped packages and repack it in unstamped packages for the use of their 
 salesmen for distribution by them as free samples, or for any other purpose. 
 The removal of samples from stamped packages and placing the same in other 
 packages will be in violation of the object of the statute requiring a stamp, and 
 of section 23, act of June 13, 1898. (T. D. 20369; November 22, 1898.) 
 
 Retail dealers are not permitted to remove chewing gum from original packages, 
 bearing stamps, and place same in show cases. (T. D. 19879; August 10, 
 1898.) 
 
 Spruce gum, when intended for sale as a chewing gum, is subject to a tax of 4 
 , cents on each retail dollar's worth, and 4 cents for each additional dollar or 
 fractional part thereof. (T. D. 20371; November 22, 1898.) 
 
69 
 
 Chewing gum— Stamp tax— Continued. 
 Regulations relative to tax : 
 
 In pursuance of Schedule B, section 23, act of June 13, 1898, and with regula- 
 tions relative to tax on chewing gum, or substitutes therefor, before the same 
 are removed from the factory for sale or consumption, it is held that all chew- 
 ing gum in the hands of manufacturers or wholesale or retail dealers on the 
 1st day of July, 1898, is subject to the payment of the stamp tax, but it shall 
 be deemed a compliance with the act, as to such articles on hand in the hands 
 of wholesale or retail dealers, who are not manufacturers thereof, to affix the 
 proper adhesive stamp at the time the packages are sold at retail. (T. D. 
 19579; June 27, 1898.) 
 
 Chinese records — Transfer. 
 
 The, act of Congress approved February 14, 1903, establishing the Department of 
 Commerce and Labor, provides for the transfer of all records, duplicate certifi- 
 cates, letters, papers, and data of every kind relative to Chinese or Chinese 
 certificates of residence, from the offices of the collectors of internal revenue 
 and the collectors of customs to the Commissioner-General of Immigration in 
 said Department. (T. D. 658; May 5, 1903.) 
 
 Claret ice — Special tax. 
 
 Special tax is not required of a druggist, as a liquor dealer, for serving a claret 
 ice over his soda-fountain counter, the beverage being composed of one-half 
 ounce claret wine, one-fourth ounce raspberry sirup, one-half ounce plain 
 sirup, 7 ounces shaved ice, and some acid phosphate, the claret wine contained 
 therein being only one-sixteenth of the mixture. (T. D. 480; March 6, 1902.) 
 
 Claims — Assignment. 
 
 The transfers and assignments of claims upon the Treasury, whether absolute or 
 conditional, are null and void unless made after the allowance of the claim, 
 the ascertainment of the amount due, and the issuing of a warrant in payment 
 thereof. (T. D. 276; February 12, 1901.) 
 
 Claims — Refund — Stamp tax. 
 
 Claims may be made on Form 46 for refund of amounts paid for stamps affixed 
 to articles which have not been removed from place of manufacture or customs 
 bonded warehouse. (T. D. 536; June 18, 1902. ) 
 Claims for rebate of tax on tobacco and snuff, under the act of April 12, 1902, 
 were subject to examination on Form 481, in pursuance of instructions given 
 to collectors by the Commissioner, September 12, 1902. (T- D. 579; Septem- 
 ber 12, 1902.) 
 
 Clubs — Special tax. 
 Sworn returns: 
 Where any person conducting business as a retail liquor dealer in the name of a 
 club makes sworn return and pays the special tax, his name, as well as the 
 name of the club, must be entered by the collector in his record No. 10, 
 together with the particular location of the place at which the business is car- 
 ried on. (T. D. 629; February 16, 1903.) 
 
 Circular 636 — Special tax. 
 
 Confectioners who sell ices to which they have added spirits or wine for flavor- 
 ing, and which are sold as solids, are not liable to tax as liquor dealers, under 
 the terms of Circular 636.- (T. D. 620; January 20, 1903.) 
 
 Collateral — Shares of stock. 
 
 Shares of stock in any association, company, or corporation, when pledged as 
 collateral to secure the future payment of money, or for the future transfer of 
 
70 
 
 Collateral — Shares of stock — Continued. 
 
 any stock, is liable to stamp tax on each hundred dollars of face value or frac- 
 tion thereof, 2 cents. (See Attorney-General's opinion; January 4, 1902.) 
 (T. D. 457; January 6, 1902.) 
 
 Collateral securities, pledges— Stamp tax. (See also Decisions 21152, 21497.) 
 Collateral securities and instruments, used as security for the payment of money, 
 must be pledged for a definite or certain sum, stated therein, in order to become 
 subject to stamp tax required on promissory notes by the war-revenue act of 
 
 1898. (T. D. 20193; Attorney-General's opinion; September 21, 1898.) 
 Collateral deposited as security for a credit for $10,000 on open account is subject 
 
 to taxation as a pledge, and but one tax on the original pledge, no matter how 
 
 many times the loan is borrowed and paid. (T. D. 21044; April 19, 1899.) 
 Pledge of insurance policy to secure loan not taxable if the amount secured is 
 
 less than $1,000. If loan exceeds §1,000, it is taxable as a pledge of personal 
 
 property. Pledge of insurance policy not such an assignment as requires a 
 
 stamp at the same rate as imposed on the original instrument. (T. D. 19841; 
 
 August 6, 1898. ) 
 Stamp tax is required on the notes, on the pledge or memorandum of pledge (if 
 
 the amount secured thereby exceeds $1,000), and on the renewal of the notes; 
 
 but not again on the pledge, if it remains as at the beginning, without formal 
 
 renewal. (T. D. 19978; August 30, 1898.) 
 When certificates of stock or other securities are pledged for a loan, the stamp 
 
 tax is to be reckoned, not on the face value of the certificates (or securities), 
 
 but on the amount of money loaned (above $1,000). (T. D. 19736; July 20, 
 
 1898. ) 
 Where there is a collateral note secured by a mortgage or by a deed of trust, 
 
 signed and delivered subsequent to July 1, 1898, but prior to February 28, 
 
 1899, only one stamp is required and the taxation of the instrument is gov- 
 erned by the following regulation, viz: If for an amount up to $1,000, as a 
 promissory note only; if for an amount in excess of $1,000, but not exceeding 
 $1,200, as a pledge only; if for an amount in excess of $1,200, but not exceed- 
 ing $1,500, as a promissory note only; if for an amount exceeding $1,500, as a 
 pledge only. (T. D. 20949; April 1, 1899.) 
 
 Certificates used as collateral: 
 
 1. Stock certificates, used as collateral on notes, do not require stamps, as in cases 
 of actual transfer, but are to be stamped as a pledge for the amount hypothe- 
 cated. A new stamp is required on each renewal of the note, but the certifi- 
 cates themselves do not, as collateral, require new stamps. 
 
 2. In case of bill of sale, certificates being attached thereto as collateral, it must 
 be regarded as a transfer of the certificates, and the tax of 2 cents on each $100 
 of face value, or fraction thereof, must be paid and the requisite stamp affixed, 
 but successive renewals of the notes do not require the stamping anew of the 
 certificates. 
 
 3. Where long-time notes, dated previous to July 1, 1898, secured by a deed of 
 trust, are used as collateral on commercial paper, the deed of trust and the 
 notes require to be stamped on the basis of the amount for which pledged, but 
 successive renewals do not require to be stamped anew. (T. D. 19685; July 13, 
 1898. ) 
 
 Collateral — Loaning- money. 
 
 Business of loaning money and holding policies "of insurance as collateral security 
 for the loan is not that which is ordinarily or usually known as the business 
 of a pawnbroker, and special tax of a pawnbroker is not required to be paid 
 therefor. (T. D. 459; January 10, 1902.) 
 
71 
 
 Collateral — Loaning' money — Continued. 
 
 Where there ia a delivery of stocks, in shares as collateral, to secure the future 
 payment of a definite sum of money, the pledge so made is subject to stamp 
 tax under paragraph 1, Schedule A, act of June 13, 1898. (See opinion of 
 Attorney-General, dated January 4, 1902.) (T. D. 457; January 6, 1902.) 
 Commercial brokers. 
 
 Auctioneers, Merchants, Warehousemen. 
 
 A person whose business it is to take orders from stone contractors and place 
 these orders with quarrymen, receiving a commission from the quarrymen on 
 the sales thus negotiated, is required to pay special tax as a commercial 
 broker. (T. D. 20241; October 25, 1898.) 
 
 A person engaged in the manufacture of proprietary medicines, which he places 
 upon the market duly stamped, some of which goods are sold outright by the 
 company, and some of which are left with the local agent for sale on commis- 
 sion, is not regarded as a commercial broker. (T. D. 20272; October 31, 1898.) 
 
 A person who sells and delivers books on commission is not regarded as a com- 
 mercial broker,- if he receives them into his possession. (Slack v. Tucker, 23 
 Wall., 321.) (T. D. 20295; November 7, 1898.) 
 
 Commission merchants, auctioneers, tobacco and cotton warehousemen, and 
 cattle brokers are not commercial brokers. (T. D. 19766; July 27, 1898.) 
 
 Leaf-tobacco dealers, who are also engaged in the business of negotiating the 
 purchase of tobacco as agents for others, on commission, are commercial brok- 
 ers under the fourth paragraph of section 2 of the war-revenue act, and are 
 required to pay special tax accordingly. (T. D. 20592; January 19, 1899.) 
 
 Original note or memorandum of sale alone subject to tax of 10 cents, broker to 
 affix stamp; duplicate or copy not taxed, but should state that the original 
 was duly stamped. Memorandum accompanying offer to purchase subject to 
 tax when offer is accepted. (T. D. 19763; July 26, 1898.) 
 
 Persons engaged in selling passage tickets for steamship lines are not required to 
 pay special tax as commercial brokers, under the fourth paragraph of section 
 2 of the war-revenue act, on account of such business. (T. D. 20718; Febru- 
 ary 14, 1899.) 
 
 Persons representing cigar manufacturers who are furnished with samples and 
 send orders to factories, receiving a commission for furnishing orders, are liable 
 as commercial brokers. (T. D. 19575; June 27, 1898.) 
 
 Persons who represent several firms and give their entire services to them and 
 sell only from their quotations are liable as commercial brokers, unless they 
 can show that they are under agreement with such firms to act only for them, 
 and are excluded from negotiating purchases or sales for other persons. (T. D. 
 20168; October 11, 1898.) 
 
 Persons who are employed by a coal company as agents to negotiate sales of coal 
 for such company, on commission, are not on this account liable as commer- 
 cial brokers in the meaning of paragraph 4, section 2, of war-revenue act. 
 (T. D. 20189; October 12, 1898.) 
 
 Persons engaged in buying and selling merchandise on a board of trade for pres- 
 ent and future delivery, for themselves exclusively and not for others, are not 
 commercial brokers within the meaning of the definition contained in para- 
 graph 4 of section 2 of the act of June 13, 1898. (T. D. 20198; October 14, 
 1898.) 
 
 The Commissioner, modifying all previous rulings inconsistent herewith, holds 
 that persons engaged in negotiating sales of flour for one company, sales of 
 meats for another company, sales of coffee, sugar, etc., for another company, 
 and so on, receiving a commission, are commercial brokers within the mean- 
 ing of the fourth paragraph of section 2, act of June 13, 1898. (T. D. 20417 
 December 12, 1898. ) 
 
72 
 
 Commercial brokers — Continued. 
 
 Auctioneers, Merchants, Warehousemen — Continued. 
 
 Warehouse receipts for grain transferred through elevators are liable to special 
 tax under paragraph 4, section 2, act of June 13, 1898. Brokers must pay 
 special tax at branch offices. (T. D. 1961?; July 1, 1898.) 
 
 Where a dealer in diamonds engages in the business of negotiating sales of dia- 
 monds on commission as agent of another person, "on memoranda," without 
 having the diamonds in his possession, he becomes a commercial broker under 
 the fourth paragraph of section 2 of the act of June 13, 1898. (T. D. 20164; 
 October 11, 1898.) 
 
 Persons who obtain orders nontaxable: 
 Persons whose business it is to obtain orders from those who desire to buy goods, 
 and who purchase, receive, and forward the goods to their customers, are not 
 on this account commercial brokers, nor are they required to pay special tax 
 under the act of June 13, 1898, for such business, though they make a profit 
 therein through discounts allowed them by merchants and commissions paid 
 them by their customers. "Installment purchasers," who have running ac- 
 counts at stores, and give orders to their customers, on which orders these cus- 
 tomers themselves buy and receive goods, are required to pay special tax as 
 commercial brokers. (T. D. 19884; August 10, 1898.) 
 
 A representative of firms not a commercial broker: 
 
 Where a man does not hold himself out as a general merchandise broker, but is 
 employed to represent one, two, or three firms to solicit and receive orders on 
 commission for their goods, and is bound by his agreement with them to give 
 his entire services to them, he is not regarded as a commercial broker within 
 the intent of the law. (T. D. 20117; September 28, 1898.) 
 
 Negotiating sales of goods: 
 
 A firm negotiating sales of goods not shipped to them nor held in their posses- 
 sion before being sold, but shipped from other points direct to purchasers from 
 the mills, they being liable for all sales and doing their own "billing," mak- 
 ing settlements with the mills at the end of each month, retaining a stipulated 
 commission, held to be liable to tax as commercial brokers. (T. D. 19938; 
 August 23, 1898. ) 
 
 Persons representing several houses in the negotiation of sales of goods on com- 
 mission (the goods not being in their possession), if they are not bound by 
 agreement to act solely for these houses, but are at liberty to engage in the 
 same transactions for other houses, are commercial brokers, and must pay 
 special tax as such. (T. D. 19966; August 26, 1898.) 
 
 Compromise cases. 
 Authority of the Commissioner: 
 The authority to compromise internal-revenue cases conferred by and regulated 
 as to procedure under section 3229, Eevised Statutes, may be exercised by the 
 Commissioner of Internal Revenue, with the concurrence of the Secretary of 
 the Treasury, and embraces the criminal liability of the defendant. (T. D. 
 836; October 24, 1904.) 
 
 Legal procedure — Criminal liability: 
 Section 3229, Revised Statutes, expressly provides that any criminal case arising 
 under the internal-revenue laws may be compromised. The right to compro- 
 mise conferred by this section has always been understood to embrace the 
 criminal liability of the defendant up to the time the sentence is imposed. (13 
 Op. Atty. Gen., 479.) The Supreme Court in the case 'of United States v. 
 Chouteau (102 U. S., 610) recognized the right. In that case Chouteau had 
 
73 
 
 Compromise cases — Continued. 
 Legal procedure — Criminal liability— Continued. 
 
 been indicted and the prosecution compromised, and it was held that the 
 compromise was a bar to a suit on the bond for penalties. (T. D. 836; Octo- 
 ber 24, 1904.) 
 
 An offer of compromise: 
 
 In regard to the settlement of compromise cases in which proceedings are pend- 
 ing before the United States commissioner it is held that, if the party defendant 
 desires to have the case against him settled by payment of the tax, penalty, 
 and costs, it should be treated in the regular way as an offer of compromise. 
 There is no authority for a district attorney or collector to compromise, adjust, 
 or settle any charge or complaint for any violation, or alleged violation, of the 
 internal-revenue law. (T. D. 845; December 9, 1904. ) 
 Conveyances — Real Estate: 
 Character of conveyances liable to tax: 
 
 In construing paragraph 10, Schedule- A, act of June 13, 1898, as amended by act 
 of March 2, 1901, it is held that in designating the kind or character of con- 
 veyances of realty on which the tax is imposed ' ' sold " is the controlling word 
 therein, as it was in the paragraph before amendment. This is shown by the 
 use of the correlative word "purchaser" immediately following, to whom 
 alone the property can be conveyed and in whom alone it can be vested; or if 
 conveyed to or vested in any other person it must be by direction of the purchaser. 
 The words "granted, assigned, and transferred" refer only to the form of con- 
 veyance, and not to the manner of acquiring the estate. (T. D. 365; June 21, 
 1901.) 
 
 Conveyances of real estate by joint tenants or by tenants in common for the pur- 
 pose of making a division are not subject to stamp tax. (T. D. 287; February 
 16, 1901.) 
 Date of execution of conveyances: 
 
 If a deed conveying realty executed and delivered prior to July 1, 1901, is pre- 
 sented for record after said date it will require a revenue stamp to be attached, 
 according to the law now in force, before the same can be recorded. The date 
 of execution of a conveyance of real property will be presumed to be the date 
 of delivery, unless the contrary is proved. (T. D. 364; June 21, 1901.) 
 Bate of stamp tax on conveyances: 
 
 Regarding the rate of stamp tax on conveyances under the amendatory act of 
 March 2, 1901, it is held that all conveyances, where the consideration or value 
 is $2,500, or less, are exempt from tax, and that amount is to be deducted from 
 the value of all conveyances where the value or consideration exceeds $2,500. 
 (T. D. 382; July 19, 1901.) 
 "Gronnd-rent" deeds as conveyances: 
 
 A deed of conveyance conveying real estate that lies in countries that are not 
 United States territory is not subject to taxation, though the grantor and 
 grantee may each be citizens and residents of the United States. (T. D. 21562; 
 September 1, 1899.) 
 
 A deed from the executor of a deceased person, who held real estate in trust, to 
 the succeeding trustee, is taxable under the war-revenue act. (T. D. 21583; 
 September 5, 1899.) 
 
 A stamp tax is not required by the war-revenue law, on a chancellor's decree as 
 a conveyance, in proceedings of strict foreclosure of a mortgage. (T. D. 21853; 
 December 15, 1899.)- 
 
 Ground-rent deeds, arising out of what is ordinarily termed a "ground-rent 
 system," are liable, under the war-revenue act, to taxation as conveyances 
 and not as leases. (T. D. 21537; August 23, 1899. ) 
 
74 
 
 Conveyances — Real estate — Continued. 
 Conveyances made by master commissioner, taxable: 
 
 The commissioner reaffirms the decision of the United States circuit court, 
 southern district of Iowa, December 22, 1898, to the effect that the fact that a 
 conveyance is made by a master commissioner under a decree of foreclosure 
 in which the priority of liens is considered and settled, and after competitive 
 sale, does not affect the requirement that the instrument, being a "convey- 
 ance of reality," under Schedule A of the revenue law (Laws 55th Cong., 2d 
 sess., c. 448), shall have the required revenue stamps affixed, to be receivable 
 for record. (T. D. 20952; April 4, 1899.) 
 
 The conveyance of a mine located on unpatented land is subject to taxation. 
 (T. D. 20986; April 10, 1899.) 
 
 Conveyances from a husband to a third party, and from said third party to the 
 wife of original grantor, to operate as a gift to the wife, are each taxable; tax 
 based on value of real estate passing by the conveyances. (T. D. 21108; May 
 6, 1899. ) 
 
 Deeds of conveyance executed by and between tenants in common not taxable. 
 Deeds of conveyance executed by and between joint tenants taxable. (T. D. 
 21283; June 20, 1899.) 
 
 Conveyances — Stamp tax. (See also Mortgages. ) 
 
 A deed placed in escrow is not subject to taxation until all the conditions have 
 
 been complied with in the matter. (T. D. 20096; September 26, 1898.) 
 A quitclaim deed is taxable according to the value of the property interest 
 
 thereby conveyed. (T. D. 20232; October 22, 1898.) 
 Contracts for the sale of land are taxable if they convey title. If, however, they 
 
 provide for only the future delivery of a deed they are not taxable. (T. D. 
 
 20310; November 9, 1898. ) 
 Deeds of conveyance, deeds conveying an undivided interest, deeds of re-lease, 
 • and quitclaim deeds are subject to stamp tax computed upon the true value of 
 
 the property conveyed. . (T. D. 19839; August 5, 1898.) 
 Deeds made by a master in chancery are subject to stamp tax. (T. D. 20311; 
 
 November 9, 1898.) 
 The referee in foreclosure proceedings is required to affix an internal-revenue 
 
 stamp to the referee's deed delivered to the purchaser. (See decision of the 
 
 supreme court of New York, special term, January, 1899.) (T. D. 20794; 
 
 March 7, 1899.) 
 When a partition deed is operative in defining boundary lines or in showing by 
 
 location each tenant in common's interest, no tax accrues. (T. D. 20792; 
 
 March 6, 1899.) 
 Deeds for pews in churches in States where, by statute, pews are made personal 
 
 property are not required to be stamped under act of June 13, 1898. (T. D. 
 
 20636; January 26, 1899.) 
 A warranty deed, with vendor's lien, is taxable as a conveyance of land. A 
 
 mortgage tax is not imposed. (T. D. 20320; November 11, 1898.) 
 The words of purchase in the paragraph of the law relating to stamps on con- 
 veyances include all changes of title, except those occurring by descent or 
 
 operation of law. (T. D. 20195; October 13, 1898.) 
 If a deed does not grant, assign, transfer, or convey to the purchaser any lands, 
 
 tenements, or other realty, but only the right to burial, to erect monuments, 
 
 etc., it does not require a stamp. (T. D. 19838; April 5, 1898.) 
 
 A certified contract taxable: 
 A contract for a deed, used in selling real estate, is not subject to a stamp tax, 
 unless the State law requires that the party executing said contract shall 
 
7-5 
 
 Conveyances— Stamp tax— Continued. 
 A certified contract taxable — Continued. 
 
 acknowledge his signature before an officer having a seal. Such a certificate 
 would require a 10-cent stamp. (T. D. 20065; September 16, 1898. ) 
 
 Deeds of conveyance in Georgia, executed under the provisions of section 1970 of 
 the Georgia Code of 1882, are not taxable under act of June 13, 1898. (T. D. 
 85; March 30, 1900.) 
 
 When instruments convey standing or cut timber they are not taxable as convey- 
 ances. If under them the grantee acquires the use of the real estate for the 
 purpose of erecting sawmills, etc. , the document is taxable under the paragraph 
 in Schedule A relating to leases, etc. (T. D. 75; March 16, 1900.) 
 
 Curing defective stamping: 
 The action of collector in stamping the instrument under section 13, act of June 
 13, 1898, cures the defect and operates retroactively. Decision of the court of 
 appeals of Maryland, overruling decision of Judge Stake published in 
 Treasury Decisions, internal revenue, No. 53, March 1, 1900. (T. D. 164; 
 June 27, 1900.) 
 
 Gifts and conveyances by deed: 
 Conveyances made by a husband to a wife, or a conveyance made by a party as 
 a gift to a benevolent institution, in each of which the consideration is $1, are 
 not taxable. If, however, a party sells real estate to another party, or 
 exchanges real estate, or passes title to real estate for a valuable consideration, 
 the deed of conveyance is taxable. (See circular No. 555.) (T. D. 172; 
 July 3, 1900. ) 
 
 Purpose of war-revenue law as to conveyances: 
 The clear purpose of the war-revenue act, relating to conveyances, is to take 
 away from transfers and assignments any probative character and to render 
 them of no legal effect or validity until subsequently stamped in compliance 
 with the provisions of the act. The subsequent stamping is to be taken as 
 imparting legal validity from only that point of time. (See decision of Judge 
 Stake, of the fourth judicial circuit of Maryland.) (T. D. 53; March 1, 1900.) 
 
 Stamp tax under Schedule A, war-revenue law: 
 
 Commissioner's ruling as to stamp tax on conveyances of real property under 
 Schedule A of the war-revenue act, holds it is only upon conveyances of 
 "realty sold" that conveyance stamps are required — that is, upon conveyances 
 where a valuable consideration either passes, or has passed, or is to pass, 
 between grantee and grantor. (See Internal Eevenue Circular No. 555.) 
 (T. D. 66; March 9, 1900.) 
 
 No tax is required on conveyances of realty by executors to trustee without a 
 valuable consideration. (T. D. 67; March 9, 1900.) 
 
 Conveyances prior to July 1, 1898, not taxable: 
 Deeds of conveyance, mortgages, and assignments of mortgages, executed and 
 delivered prior to July 1, 1898, and not presented for record until subsequent 
 to that time, are not taxable. Attention called to the tax on these instru- 
 ments when issued between September 1, 1862, and October 1, 1872, and the 
 recordation of these documents when not stamped. (T. D. 196; August 9, 1900. ) 
 
 Maryland "ground" rental taxable as assignment of lease: 
 Deeds of partition exected by and between tenants in common, vesting title in 
 severalty, are not taxable. If a grantee acquires an amount of real estate in 
 excess of his share, the deed vesting title in him is taxable on a basis of the 
 value of said excess amount, (T. D. 50; February 27, 1900.) ' 
 
76 
 
 Conveyances — Stamp tax — Continued. 
 Maryland "ground" rental taxable as assignment of lease — Continued. 
 
 Notices of mining locations are not taxable, but deeds or conveyances of mines 
 are subject to stamp tax under war-revenue law. (T. D. 222; October 8, 1900.) 
 
 The form of deed used in Maryland in ground-rent conveyancing is taxable as 
 the assignment of a lease rather than as a deed of conveyance, inasmuch as the 
 relationship of landlord and tenant is created under the instrument. The 
 instrument is taxable under the paragraph in Schedule A relating to leases; 
 and in this particular Treasury decision 21537 is reversed. (T. D. 200; 
 August 16, 1900.) 
 
 Estates in custodia legis not taxable: 
 
 Conveyances of realty to trustees or by trustees, without a valuable considera- 
 tion, are not taxable. (T. D. 52; February 28, 1900. ) 
 
 Decision of United States court, so construing the clause in Schedule A, act of 
 June 13, 1898, as to show that stamp tax is not required on conveyances of 
 estates in custodia legis, made by decree of court, for the purpose and conven- 
 ience of. judicial administration, affecting the duties of receivers, there being 
 no valuable consideration passed between the receiver and the grantors. Such 
 transfers do not come within the purview of sales and purchases. (T. D. 51; 
 February 27, 1900.) 
 
 Stamp tax governed by actual consideration: 
 The stamp tax assessed upon conveyances of realty is determined by the amount 
 of consideration stated in the conveyance, or by the actual consideration as 
 ascertained by competent evidence. (T. D. 487; March 15, 1902.) 
 
 Court decisions. 
 Apple juice mixed with spirituous liquors — Special tax: 
 In the case of United States ?'. Lewis, in the district court for the southern dis- 
 trict of Illinois, involving special tax on apple juice mixed with spirituous 
 liquors, the court charged the jury, saying: ' ' The law, as held by the courts and 
 as construed by the Department, is that cider is the fruit of the apple. If you 
 believe from the evidence in this case beyond a reasonable doubt that the sales 
 made by this defendant were simply of the fruit of the apple, or of the fruit of 
 the apple flavored by any other fruit juice, then you will find the defendant 
 not guilty, regardless of whether or not that cider by fermentation became an 
 intoxicant. On the other hand, if you believe from the evidence beyond a. 
 reasonable doubt that the beverage sold by the defendant was the juice of the 
 apple mixed with spirituous liquors, then it was what the law calls a com- 
 pound liquor, and the sale without a tax stamp would be actionable, and you 
 will find the defendant guilty, regardless of whether or not the beverage was 
 intoxicating or not." (T. D. 801; June 21, 1904.) 
 
 Bank tax — Undivided profits: 
 The United States court of appeals, second circuit, in a suit brought for recovery 
 of tax on the undivided profits of a bank, held that, when the surplus or undi- 
 vided profits are ordinarily used by the corporation as supplementary capital 
 and "when it appears, as it does in the present case, that the undivided profits 
 have been carried over many dividend periods and have been accumulated 
 'during a period of years,' and have in the meantime been used in the busi- 
 ness like the other assets of the corporation, the inference is irresistible that 
 they have become an accretion to the capital. When this appears, they are 
 taxable, just as the accumulated profits of an individual are taxable when 
 they have been merged with his capital." (T. D. 750; February 9, 1904.) 
 
77 
 
 Court decisions — Continued, 
 legacy tax — Vested or contingent interests: 
 The United States circuit court for the eastern district of Pennsylvania holds, 
 relative to legacy tax, that where property is bequeathed to trustees the net 
 income therefrom to be paid to the testator's widow for life, and upon her 
 death remainder over to the testator's children then living and lawful issue of 
 deceased children, it is held "that the remainder to the testator's descendants 
 was vested and not contingent, and, therefore, that the tax was properly 
 levied." (T. D. 744; January 25, 1904.) 
 
 Stamp, tax — Voluntary payment: 
 The Supreme Court of the United States, in a suit brought to recover money 
 paid voluntarily for internal-revenue documentary stamps, held that ,a recov- 
 ery can not be had of taxes that have been paid voluntarily with full knowl- 
 edge of all the circumstances, and without any coercion by the actual or 
 threatened exercise of power possessed, or supposed to be possessed, by the 
 , party executing or receiving the payment, from the person or property of the 
 person making the payment, from which the latter has no other means of 
 immediate relief than such payment. (T. D. 747; February 3, 1904.) 
 
 Stamp tax — Stock transactions: 
 Where a company was engaged in stock transactions under the third subdivision 
 of Schedule A, act of June 13, 1898, as'amended by the act of March 2, 1901, 
 and received and executed orders from correspondents, it was required by 
 the statute to pay stamp tax on its written memorandum of each of these 
 transactions, notwithstanding the fact that its correspondents (brokers) in 
 their transactions with their customers, on which they transmitted the orders 
 to such company, had themselves issued a written memorandum to each cus- 
 tomer for each transaction and paid stamp tax thereon. (Ruling 345 in 
 Treasury Decisions, 1901, vol. 4, p. 132, is thus sustained.) (T. D. 774; April 
 12, 1904.) 
 
 War-re venue tax — Sale of stocks: 
 
 Decision of United States Supreme Court in Thomas v. United States, sustaining 
 
 the constitutionality of the stamp tax on sales or memoranda of sales of stock, 
 
 imposed under the war-revenue act, and affirming decision of United States 
 
 circuit court (T. D. 468). This is not a direct tax. (T. D. 758; March 5, 1904. ) 
 
 Excise tax on refining sugar — Decision of United States Supreme Court: 
 Jurisdiction. — The judgment of the circuit court of appeals is not final, within 
 the meaning of the sixth section (judiciary act of March 3, 1891), in a case 
 which, although arising under a law providing for internal revenue and involv- 
 ing the construction of that law, is yet a case involving from the outset, from 
 the plaintiff's showing, the construction or application of the Constitution or 
 the constitutionality of an act of Congress. 
 Constitutionality of the act— The tax imposed by the war-revenue act on the busi- 
 ness of refining sugar is an excise and not a direct tax, and the act imposing 
 the same is constitutional. 
 Beceipts.— Receipts from wharves used in connection with the business of refining 
 sugar come within the taxing provisions of the act. Interest on funds deposited 
 in bank, and dividends received on stocks of other corporations, are not sub- 
 ject to the tax. The tax was imposed only upon receipts in the business of 
 refining sugar, not receipts from independent sources. (T. D. 760; March 8, 
 1904.) 
 
Court decisions — Continued. 
 Distilled spirits — Forfeiture: 
 Decision of Judge Amidon, United States district court, eastern district of Mis- 
 souri, in the case of United States v. Three Packages of Distilled Spirits, 
 A. Graf & Co., claimants. The addition to packages of double-stamped spirits 
 of burnt sugar, caramel, or other materials constitutes a violation of section 
 3455, Revised Statutes, and renders the goods liable to forfeiture. (T. D. 701; 
 September 26, 1903. ) 
 
 Legacy tax — Personal property in trust: 
 In the case of personal property held in trust to the use of testator's children, 
 such interests, however, only to become "absolutely vested in such of them 
 as shall then have attained, or as shall thereafter live to attain, the age of 25 
 years," Held that such personal property vested immediately and absolutely 
 upon the death of the testator in the trustee, in trust, unaffected by any con- 
 tingency whatever, and so is not exempt under the provisions of the act of 
 June 27, 1902. The courts always vest a legacy at once, if it can reasonably 
 be done. A real estate mortgaged indebtedness, assumed by the testator as 
 mortgagee, held to be a legal debt and expense to be paid from the personalty. 
 (T. D. 764; March 15, 1904. ) 
 
 Legacy tax — Vested and contingent interests: 
 Departmental construction of the will as giving a life estate instead of an annuity 
 to the daughters of the testator sustained. The remainder interest given to 
 the daughters, of which the widow had a life use, held to be vested and not 
 contingent. (T. D. 763; March 14, 1904.) 
 
 Legacy tax — Son-in-law, stranger in blood: 
 The United States circuit court, southern district of New York, held, in King 
 et al., executors, etc., v. Eidman, collector, etc., relative to the legacy tax due 
 from a legacy to a son-in-law, that, unless the son-in-law is a blood relation of 
 his father-in-law, the legacy tax was correctly assessed. (T. D. 719; Novem- 
 ber 21, 1903.) 
 
 Oleomargarine — Opinion of Supreme Court in the palm-oil case: 
 One of the purposes of the oleomargarine legislation was to prevent the sale of 
 oleomargarine as and for butter. When any substance, although named as a 
 possible ingredient of oleomargarine, serves only the function of coloring the 
 mass so as to cause it to "look like butter of any shade of yellow," it is an 
 artificial coloration, and the product is subject to a tax of 10 cents per pound. 
 (T. D. 839; October 28, 1904). 
 
 Oleomargarine — Supreme Court decision in McCray v. United States: 
 The law imposing a tax of 10 cents a pound on oleomargarine artificially colored 
 in imitation of butter and one-fourth of 1 cent per pound on uncolored oleo- 
 margarine is constitutional. The courts can not hold a tax void because it is 
 deemed too high. Although the effect of the tax in question may be to repress 
 the manufacture of artificially colored oleomargarine, it is not on that account 
 a violation of fundamental rights. An act of Congress exerting the taxing 
 power can not be avoided on the ground that it is an abuse of power. Whilst 
 the statute recognized the right of a manufacturer to use any or all of the 
 authorized ingredients so as to make oleomargarine, and also authorized as 
 one of the ingredients butter artificially colored, if the manufacturer elected 
 to use such ingredient last mentioned, and thereby gave to his manufactured 
 product artificial coloration, such product so colored, although being oleomar- 
 garine, was not within the exception created by the proviso, and therefore 
 came under the general rule subjecting oleomargarine to the tax of 10 cents a 
 pound. (T. D. 795; June 4, 1904.) 
 
79 
 
 Court decisions — Continued. 
 Oleomargarine— Waiver of jury — Supreme Court decision: 
 It is not a constitutional requirement that the trial of petty criminal Offenses 
 should be by a jury. There is no public policy which forbids the waiver of a 
 jury in the trial of petty offenses. A jury may be waived where parties are 
 prosecuted by information under section 11, act of August 2, 1886 (24 Stat., 
 209), which reads: "That every person who knowingly purchases or receives 
 for sale any oleomargarine which has not been branded or stamped according 
 to law shall be liable to a penalty of fifty dollars for each such offense. " (T. D. 
 802; June 28, 1904.) 
 
 Shipping liquors under false brands: 
 The United States circuit court of appeals (Judge Goff), in the case of United 
 States v. Twenty Boxes of Corn Whisky, holds that the ]^w was intended to 
 prevent the removal of liquors under a false brand. It does not forbid a ship- 
 ment without any designation whatever. Bottled whisky shipped in boxes 
 is not forfeited on account of being labeled "Glass; this side up, with care." 
 That is merely a caution addressed to the carrier and not a designation of the 
 contents of the packages. The statute applies only to distillers, rectifiers, 
 brewers, manufacturers of wine, and wholesale dealers in spirituous and fer- 
 mented liquors or wines. (T. D. 844; November 28, 1904.) 
 
 South Carolina dispensary — Special tax: 
 The State of South Carolina, in carrying on the business of its dispensary system, 
 is not exempt from payment of special tax. The police power extends no 
 further than the general welfare. When a State engages in commercial busi- 
 ness for a profit, it can not claim exemption from taxation on the principle 
 that it is a tax on the instrumentalities of the State government. The exemp- 
 tions of sovereignty extend no further than the attributes of sovereignty. 
 (T. D. 759; March 8, 1904.) 
 
 Stamp tax on sales of stock: 
 Bucket-shop transactions, under paragraph 3 of section 8, act of March 2, 1901, 
 amending the act of June 13, 1898. — Duty of persons conducting such business 
 to give to parties with whom trades or transactions are had the stamped memo- 
 randa specified in said act. It is immaterial whether the defendant was con- 
 ducting business solely for himself or as agent. In either case he is guilty. — 
 T. D. 345 sustained. (T. D. 627; February 14, 1903.) 
 
 Legacy tax: 
 Property passing from testator by will through executors to themselves as trustees 
 to hold "in trust ' ' for beneficiaries is taxable. The assessment is not laid upon 
 the beneficiaries personally, but upon the property; not as it reaches them, but 
 in cases like this, as it goes to the trustees for them. Knowlton v. Moore (178 
 U. S., 41). (T. D. 618; January 17, 1903.) 
 
 Legacy to a municipal corporation: 
 A legacy in Government bonds to the city of Springfield, Ohio, the principal of 
 which by the terms of the will was to be kept permanently invested and the 
 income to be expended in the maintenance and improvement of a public park 
 of the city, was taxable under the war-revenue law. The tax is not regarded 
 as a tax upon the municipality. Congress has the power to tax the transmis- 
 sion of property by legacy to States or their municipalities. Such taxes are 
 not upon property, but upon the right to succeed to property. (See decision 
 of Supreme Court of the United States, June 1, 1903.) (T. D. 666; June 9, 
 1903. ) 
 
80 
 
 Court decisions — Continued. 
 Official records— Testimony of collectors: 
 
 In re Lamberton— habeas corpus— the district court of the United States for west- 
 ern district of Arkansas held that collectors and deputy -collectors are not only 
 prohibited from giving out copies from their records, but also from testifying 
 orally, in cases not arising under the laws of the United States, as to facts that 
 have come to their knowledge as the result of information contained in the 
 records. (T. D. 689; August 8, 1903.) 
 Stamp tax on export bills of lading unconstitutional: 
 
 The Supreme Court of the United States, in the case of Frank M. Fairbank, 
 plaintiff in error, district of Minnesota, holds that a stamp tax on export bills 
 of lading is unconstitutional, the requirement of the constitution being that 
 exports shoul^ be free from any governmental burden. (T. D. 339; May 7, 
 1901.) 
 Regulations, as to marking oleomargarine packages : 
 
 The United States circuit court of appeals, for the third circuit, declares, relative 
 to indictments against parties charged with violations of the oleomargarine 
 laws, that the regulations prescribed by the Commissioner of Internal Reve- 
 nue, with the approval of the Secretary of the Treasury, in regard to marks 
 and brands on packages of oleomargarine, are authorized by law. The pro- 
 visions of section 6, act of August 2, 1886, are within the constitutional power 
 of Congress. Where the indictment, under that section, charged that the 
 defendant unlawfully packed, unlawfully sold, and unlawfully delivered oleo- 
 margarine, and the question being whether the counts contained enough to 
 describe the offense punishable under the section, it was held that the Gounts 
 were sufficient. (T. D. 335; April 27, 1901.) 
 
 The United States circuit court of appeals for the third district, March term, 
 1901, holds, as to legacy, that personal estate, passing by the intestate laws, or 
 by will, passes from the testator, and not from the administrator, executor, or 
 trustee; therefore, no tax accrues on legacies where testator died prior to June 
 13, 1898. (T. D. 343; May 9, 1901.) 
 
 Where receivers and assignees, upon orders issued to them by any court, make 
 sales in compliance with such mandates in discharge of the duties imposed 
 upon them by the law, they are not required to pay special tax under the 
 internal-revenue laws of the Dnited States on account of such sales. (T. D 
 316; March 30, 1901.) 
 "Calls" taxable as "agreements" to sell stocks: 
 
 The Supreme Court of the United States, on an appeal from the United States 
 circuit court for the second circuit, decides that a "call" upon shares of stock 
 on the New York Stock Exchange is an "agreement to sell," under the pro- 
 visions of section 25, Schedule A, war-revenue law, and is taxable as such. 
 (T. D. 338; May 4, 1901.) 
 Section 27, war-revenne act, held constitntional : 
 
 The United States circuit court, October sessions, 1900, in an opinion relative to 
 the constitutionality of section 27, of the war-revenue act, so far as sugar 
 refiners are concerned, holds that said section, imposing a tax on gross annual 
 receipts of sugar refiners, exceeding $250,000, is constitutional. The taxi! 
 assessable monthly. Moneys earned before the passage of the act, although 
 received after, are not taxable. Interest received from corporate funds, either 
 deposited in bank or invested in income-producing securities, properly included 
 in determining the annual value of the business. Eeceipts from capital 
 invested in wharves taxable; receipts from stevedoring were improperly 
 included in taxable receipts. (T. D. 350; May 25, 1901.) 
 
Court decisions — Continued. 
 A legacy in Government bonds taxable: 
 A decision of the United States circuit court for the southern district of Ohio, 
 western division, relating to a legacy tax, declares that a legacy in Government 
 bonds to a municipal corporation, the principal of which is to be invested and 
 the income to be expended in the maintenance and improvement of the public 
 park of a city, is taxable on the ground that the tax is not levied upon the 
 property, but that a duty or charge is levied upon the testator's estate for 
 the privilege of transmitting the legacy to the city. (T. D. 454; December 30, 
 1901.) 
 
 Patent medicines, advertised as "remedies," taxable: 
 
 Decision of United States circuit court in the case of J. Ellwood Lee Company v. 
 P. A. McClain, collector. Plasters put up in style or manner similar to that of 
 patent, trade-mark, or proprietary medicines in general, and advertised as 
 remedies, or as having a special claim to merit, are subject to stamp tax, under 
 Schedule B, act of June 13, 1898. The word "compounded" in section 20 of 
 the act is not employed in a peculiar or technical sense, but is used in its ordi- 
 nary sense. (T. D. 268; January 21, 1901.) 
 
 The United States circuit court of appeals for the ninth circuit, relative to offer- 
 ings for sale of liquors and special tax thereon, holds that goods are offered for 
 sale at the place where they are kept for sale and where a sale may be effected. 
 They are not offered for sale elsewhere by sending abroad an agent with sam- 
 ples, or by establishing an office for the purpose of taking orders. (T. D. 310; 
 March 25, 1901.) 
 
 Coupons. ' 
 
 Coupons in manufacturers' packages: 
 The regulations concerning the contents of packages of cigars allow manufacturers 
 to place within their statutory packages containing cigars small advertising 
 cards, coupons, certificates, etc., which do not materially increase the weight 
 of the contents or the size of the packages, and which are intended as an adver- 
 tisement of the business of the manufacturer, and concerning the manufacture 
 and sale of his cigars and no other business. (T. D. 572; April 27, 1902. ) 
 
 Cards and certificates in statutory packages: 
 Small cards, coupons, and certificates, not materially increasing the weight of the 
 package, and intended as an advertisement of the business of a manufacturer, 
 and which concern the manufacture and sale of his snuff and no other business, 
 may be placed in a statutory package. Such cards may be returned to the 
 manufacturer in exchange for other articles, where their distribution does not 
 depend upon the event ^f a lottery. (T. D. 573; August 2, 1902. ) 
 
 Construction of section 10, act of 1897: 
 
 Section 10, act of July 24, 1897, which prohibits packages of smoking tobacco, 
 fine-cut chewing tobacco, and cigarettes from having packed in or attached to 
 or connected with them "any article or thing whatsoever" of a foreign nature, 
 and provides that there shall not be affixed to or branded, stamped, marked, 
 written, or printed upon said packages or their contents, any promise or offer, 
 or any order or certificate for any gift, prize, premium, or rewai-d, is constitu- 
 tional. Coupons, as described, are within the prohibition. 
 
 Under the rules respecting the certification of questions by the court of appeals 
 to the Supreme Court, the court declined to give an opinion upon the section 
 of the statutes which provides for forfeiture. (T. D. 525; May 21, 1902.) 
 
 31331—05 6 
 
82 
 
 Custom-house brokers — Special tax. 
 Tax due from custom-house brokers: 
 Custom-house brokers are required to pay a special tax of $10, and take out the 
 requisite stamp for each place in which they do business. The first clause of 
 section 3235, Revised Statutes, applies to every business for which special tax 
 is required to be paid, whether under old laws or under the war-revenue law 
 of 1898. (T. D. 19576; June 27, 1898.) 
 
 Custom-house brokers defined: 
 
 A special-tax stamp taken out by a person in his own name as a custom-house 
 broker is sufficient to cover the business done by him in his own name, at the 
 place of business stated therein, whether such business is done by him on his 
 own account or as an agent for other persons. (T. D. 20206; October 19, 1898. ) 
 
 Bills of sale of vessel property are "custom-house papers" in contemplation of 
 the statute, and a person "whose occupation it is, as the agent of others," to 
 prepare such bills of sale is required to pay special tax as a custom-house 
 broker. (T. D. 20321; November 12, 1898.) 
 
 Persons who hold themselves out as custom-house brokers; firms known as 
 agents of steamship lines to which merchandise is consigned for exportation; 
 agents who pass "entries," orders of appraisement, and other papers con- 
 nected with baggage and merchandise, and to whom bills of lading are intrusted; 
 sales agents of certain factories, and attorneys in fact of manufacturers, receiv- 
 ing merchandise, making entries, and giving bonds to produce owner's oath; 
 persons and firms engaged in preparing manifests, etc., executed by masters 
 of vessels, must pay special tax as custom-house brokers. (T. D. 20033; Sep- 
 tember 13, 1898.) 
 
 Payment of special tax as commercial brokers does not relieve persons who act 
 as the agents of others to arrange entries and other custom-house papers from 
 special tax as custom-house brokers. (T. D. 20595; January 19, 1899.) 
 
 Persons whose occupation it is, as agents for others, to enter and clear vessels at 
 the custom-house, can not be relieved from payment of special tax as custom- 
 house brokers on the ground that they have paid special tax as commercial 
 brokers, which entitles them "to negotiate freights or other business for the 
 owners of vessels." (T. D. 21562; February 20, 1899.) 
 
 Custom-house papers. (See also Decision 19709, p. 211.) 
 
 Certificates of delivery of bonded goods and other certificates required by customs 
 regulations should have affixed thereto the 10-cent stamp under the provision 
 of Schedule A for ' ' Certificate of any description required by law not other- 
 wise specified in this act." (T. D. 19605; June 29, 1898. ) 
 
 Warehousing bonds, penal bonds, transportation bonds, exportation bonds, tea 
 bonds, invoice bonds, owners' oath bonds, bonds for certificate of exportation^;," 
 all required under customs regulations — must have affixed thereto the 50-cent 
 stamp under that provision of Schedule A of the act of June 13, 1898, relating 
 to "all other bonds of any description, except such as may be required in legal 
 proceedings.'' 
 
 D. 
 
 Dealers and rectifiers — Special tax. 
 
 A beverage made of the juice of apples, even though by fermentation it develops 
 "an alcoholic strength of 7 or 8 per cent," or more, does not on this account 
 become a liquor for the sale of which the internal-revenue laws require special 
 tax to be paid. (T. D. 27; January 29, 1900.) 
 
83 
 
 Dealers and rectifiers— Special tax— Continued. 
 
 A beverage called creme de menthe being a compound of distilled spirits with 
 other materials, every person manufacturing it for sale and selling it becomes 
 liable as a rectifier. (T. JD. 33; February 3, 1900. ) 
 
 Sale of warehouse whisky certificates : 
 A bfewer, taking warehouse certificates for whisky in bond as security for or in 
 payment of a debt, and selling these certificates in the manner provided in 
 the exempting provision of section 4, act of March 1, 1879, and not being 
 otherwise a liquor dealer, is not required to pay special tax as a wholesale 
 liquor dealer on account of such sale. (T. D. 35; February 7, 1900.) 
 
 Imitation fruit juices — Special tax : 
 
 Imitation "fruit juices" made of acids and sweetening, and flavored to resemble 
 fruit juice, do not come under the internal-revenue laws, if they do not con- 
 tain any noticeable percentage of alcohol, if, however, they are found to 
 contain a perceptible quantity of alcohol, whether this is present througji 
 fermentation or the addition of spirits or other alcoholic liquor (wine), dealers 
 therein involve themselves in special-tax liability as liquor dealers under the 
 internal-revenue laws. (T. D. 38; February 8, 1900.) 
 
 Manufacture of wood alcohol: 
 The special tax of a liquor dealer, under the internal-revenue laws of the United 
 States, is not required to be paid for the sale of wood alcohol, if it is the prod- 
 uct solely of the destructive distillation of wood, entirely free from admixture 
 with distilled spirits, as defined by section 3248, Revised Statutes, or with 
 other alcoholic liquor. (T. D. 43; February 16, 1900.) 
 The special tax of a rectifier is not required to be paid for the manufacture for 
 sale, nor the special tax of a liquor dealer for selling, .extracts and essences, 
 such as peppermint, wintergreen, and Jamaica ginger, even though they con- 
 tain a large percentage of alcohol, if they are the ordinary extracts or essences 
 known to the legitimate grocery or drug trade as household articles for use in 
 culinary and other preparations. (T. D. 42; February 14, 1900.) 
 
 Transferring packages of spirits : 
 
 A person who holds special- tax stamps as a rectifier and retail liquor dealer is 
 not required to pay special tax as a wholesale liquor dealer for transferring 
 packages of Spirits from his possession as a rectifier into his possession as a 
 retail liquor dealer; but every such transfer must be entered. in his record, 
 Form 52, in strict compliance with section 3318, Revised Statutes. (T. D. 44; 
 February 16, 1900.) 
 
 Deeds — Stamp tax. ' 
 
 Deeds from building and loan associations: 
 A deed conveying, from a building and loan association real property, owned 
 by such an association, to a person who is not a shareholder nor a member 
 thereof, is taxable at the same rate as any other conveyance of real property. 
 (T. D. 285; February 15, 1901.) 
 
 Joint conveyances: 
 
 Where persons own land jointly, or in common, and make conveyance to each 
 other so that each shall thereafter own his share in severalty, there is no con- 
 veyance of lands sold within the meaning of the statute, and no stamp tax 
 accrues on such deeds. Any former rulings of this office inconsistent herewith 
 are hereby revoked. (T. D. 287; February 16, 1901.) 
 
84 
 
 Deliveries of stock — Stamp tax. 
 
 Memorandum used in delivering stock as security for the future payment of 
 money printed on an envelope, or any similar memorandum, requires a stamp 
 under the Attorney-General's decision (T. D. 457). (T. D. 473; February 8, 
 1902.) 
 
 Euling that a memorandum used in delivery of stock as security for the future 
 payment of money printed on an envelope, or any similar memorandum, 
 requires a stamp, adhered to. Request for reconsideration and reversal of 
 decision of February 8, 1902 (T. D. 473), refused. Secretary of the Treasury 
 requested to refer the question to the Attorney-General for an opinion. (T. D. 
 501; April 14, 1902.) 
 
 Distiller's bond — Liability. 
 
 As held by the United States district court for the eastern district of North Caro- 
 lina, the distiller's annual bond is liable for the tax on spirits removed from 
 warehouse without payment of tax. (T. D. 753; February 27, 1904.) 
 
 Distiller's bonded sureties. 
 
 The Commissioner presumes that there is no question that a surety on a distiller's 
 bond can claim whatever homestead exemption is allowed him under the laws 
 of the State in which he resides. The oath taken by the individual surety is 
 to the effect that he is worth, at least, the amount of the bond over and above 
 property exempt from execution under the homestead laws of the State. If 
 bonds of this class are taken, signed by sureties who have sworn falsely, and, 
 by reason of such false statement, the bonds are worthless, such surety should 
 be prosecuted criminally. (T. D. 816; August 23, 1904.) 
 
 Distraint. 
 
 Collection of tax by distraint: 
 While section 3251, Revised Statutes, does not declare that the failure to assess 
 shall invalidate the proceedings taken to enforce the collection by distraint 
 without assessment, it is deemed better to adopt the course suggested in sec- 
 tion 3293, Revised Statutes amended, and have the distraint follow assessment, 
 particularly as real estate is involved, the title to which might possibly be 
 invalidated by the omission of one of the requirements of the statute. (T. D. 
 832; October 6, 1904.) 
 
 Salaries, fees, commissions, etc.: . 
 
 No fees or commissions to be retained by collectors are to be collected upon sale 
 of property under seizure or on warrants of distraint. Allowances to collec- 
 tors for salary and office expenses are in lieu of salary and commissions pro- 
 vided for prior to the enactment of section 3148, Revised Statutes. (T. D. 770; 
 April 1, 1904. ) 
 
 Distraint sale. 
 
 In view of the ruling of the Comptroller of the Treasury, construing sections 
 3187-3195, Revised Statutes, as to surplus proceeds from distraint sales, in 
 cases where the collector is entirely satisfied as to the identity of the person 
 legally entitled to receive the surplus, he will, of course, return it to such per- 
 son or firm. In cases, however, where there is any doubt upon this point, 
 the collector will comply literally with the statute and make the deposit to 
 the credit of the Treasurer of the United States. (T. D. 390; July 29, 1901.) 
 
 Collectors are cautioned against incurring unnecessary expenses for advertising 
 in connection with seizures for violation of law or under distraint made under 
 any section of the statutes. (T. D. 273; February 5, 1901.) 
 
85 
 
 Distiller's sale— Special tax. 
 Sale of whisky bought in bond: 
 Where a distiller has sold to another his distillery property and all the whisky 
 in the bonded warehouse, he can not, by continuing to make an annual dis- 
 tiller's bond and authorizing the sale of the whisky in bond in his name, 
 relieve the purchaser from special tax as a wholesale liquor dealer for selling 
 the whisky that has become his property. Such a case can not be brought 
 within the exemption of the statute. (T. D. 664; May 23, 1903.) 
 
 Distilled spirits. 
 
 Introduction of caraway seed: 
 The introduction into the still by a fruit distiller of caraway seed as a flavoring 
 material at the time of distillation is not permissible. The process is held to 
 constitute rectification. (T. D. 810; July 16, 1904.) 
 
 The use of case stamps: 
 
 Collectors should ascertain whether applicants are eligible to use the case stamps, 
 for which requisitions are made, before forwarding orders on Form 403. (T.D. 
 781; April 26, 1904. 
 
 Warehouse certificates: 
 The Government has no responsibility for the issuance and sale of warehouse cer- 
 tificates for whisky distillers. (T. D. 752; February 26, 1904.) 
 
 Branding original packages: 
 Distilled spirits contained in original packages or bottled in bond are required 
 to be marked, branded, and stamped, showing the names of the distiller and of 
 the district, in order that their identity as domestic articles may be established. 
 (T. D. 286; February 15, 1901.) 
 
 Distillers' original packages: 
 The regulations permitting the reduction of distilled spirits in distillers' original 
 packages, in certain cases, by the simple addition of water, to a proof not less 
 than 90 per cent (pages 182 to 185, No. 7, revised), are hereby extended so as 
 to sfpply to such packages after they have been removed tax-paid and are still 
 in the possession of the distiller at his free warehouse. (T. D. 748; February 
 3, 1904. ) 
 
 Distilled spirits in bond: 
 The act of January 13, 1903, amendatory of the internal-revenue law of March 3, 
 1899, provides that ' ' all distilled spirits in internal-revenue bonded warehouses, 
 or which may hereafter be produced and deposited in such warehouses, shall 
 be entitled to the same allowance for loss from leakage or evaporation which 
 now, exists in favor of distilled spirits produced, gauged, and so deposited 
 prior to January first, eighteen hundred and ninety-nine, and subject to the 
 same conditions and limitations." (T. D. 617; January 17, 1903.) 
 
 Domestic spirits shipped to Philippine Islands: 
 
 Domestic distilled spirits shipped from the United States to the Philippine 
 Islands, in bond, or with benefit of drawback (act March 8, 1902), are never- 
 theless subject under paragraph 308 of the Philippine tariff law of September 
 17, 1901, to the duty therein imposed. (T. D. 837; October 25, 1904.) 
 
 Forfeiture: 
 
 When coloring matter is introduced into packages of whisky, double stamped, 
 it is held subject to forfeiture under section 3455, Eevised Statutes. The pack- 
 age is also liable to forfeiture under section 3289, unless the contents are cov- 
 ered by a rectifier's stamp.- (T. D. 800; June 15, 1904.) 
 
86 
 
 Distilled spirits — Continued. 
 
 Distillery transfer : 
 Where a distiller makes over to his son his distillery and the distilled spirits 
 therein, he does not thereby become involved in special-tax liability as a 
 wholesale liquor dealer. (T. D. 707; October 2, 1903.) 
 
 Inspecting shipments from Porto Bico: 
 As to shipments of rum from Porto Rico to the United States in bottles, so 
 packed as not to admit of affixing tax-paid stamps thereto. The owner or 
 consignee, upon the arrival of such spirits, should give notice of the fact, 
 whereupon the spirits should be inspected and entered for removal, as in the 
 case of spirits received in original packages. (T. D. 430; November 2, 1901. ) 
 Collectors are required to report to the Commissioner the quantity of tax-paid 
 spirits of the different kinds known to the trade held by wholesale and retail 
 dealers and rectifiers, October 1, 1901. (T\D. 397; August 7, 1901.) 
 
 Peddling alcoholic liquors prohibited: 
 The internal-revenue laws do not contemplate the peddling of alcoholic liquors, 
 nor permit the issuance of any special-tax stamp to cover such peddling. Any 
 person found traveling from place to place selling and delivering alcoholic 
 liquor should be reported for prosecution for selling liquor at some particular 
 point on his route at which there is evidence of his having sold without 
 payment of the special tax at that place, and not as a peddler. (T. D. 584; 
 September 24, 1902. ) 
 
 Soda water drinks, with distilled spirits added: 
 Collectors are notified that on and after January 1, 1903, the special tax of a 
 retail liquor dealer is required to be paid by every person who sells or offers 
 for sale any soda-water drinks or other beverages to which is added distilled 
 spirits or wine (the fermented juice of small fruit) or any compound thereof. 
 (T. D. 602; December 15, 1902. ) 
 
 Tax-paid stamps: 
 
 When tax-paid stamps are issued by the collector, to be placed upon packages 
 of spirits in distiller's warehouse, the collector should issue his o»der to the 
 storekeeper in charge for delivery of the spirits. Spirits should not remain in " 
 warehouse or on the distillery premises after the tax-paid stamps have been 
 affixed. Collector not to refuse to deliver stamps to distiller paying the tax. 
 (T. D. 765; March 18, 1904.) 
 
 The use of shipping tags: 
 The use of a shipping tag tacked over the stamp on a package of distilled spirits 
 is forbidden, although it does not cover up the entire stamp. (T. D. 772; 
 April 9, 1904.) 
 
 Warehouse certificates: 
 The Government of the United States has no responsibility whatever for the 
 issuance and sale of warehouse certificates for whisky by distillers, the certifi- 
 cates are not issued under the internal-revenue laws, or any other laws of the 
 United States, and purchasers thereof have no recourse against the United 
 States. (T. D. 752; February 26, 1904.) 
 
 Use of caraway seed: 
 As caraway seed contains no spirit-producing properties, and its use is solely to 
 impart a flavor by incorporating the vapor containing the flavor with the 
 vapor from the distilled fruit, which flavor remains incorporated when the 
 manufacture is complete, the process is held to be the production of an imita- 
 tion or compound liquor, which process is defined by the statute as rectifica- 
 tion, and therefore not permissible in the distillery. (T. D. 810; July 16, 1904.) 
 
87 
 
 Distilled spirits — Continued. 
 Name known to the trade: 
 Alcohol which has been refined at a rectifying house and reduced from 188 to 
 120 per cent can properly be branded "alcohol," as indicating the name of 
 the spirits known to the trade, if it be of high proof and for domestic con 
 sumption. (T. D. 790; May 21, 1904.) 
 Distilled spirits from grain: 
 
 Collectors should exercise great care in segregating, in their returns, the amounts 
 derived, respectively, from spirits distilled from fruits, and spirits distilled 
 from grain and materials o^her than fruit. This is an essential requirement to 
 render the records of the Commissioner's office complete (T. D. 565; August 
 13, 1902. ) 
 
 Distillery warehouse visits. 
 
 Collectors are advised that distillery warehouses that are under the care of gen- 
 eral storekeepers and gaugers should be visited monthly instead of as occasion 
 demands, for the purpose of making withdrawals. Such monthly visits will 
 greatly safeguard the spirits stored in such warehouses, and in case of theft or 
 other illegal removal of the spirits from the warehouse the guilty persons will 
 be more liable to be apprehended than if the visits to such warehouses are 
 made at longer intervals. (T. D. 461; January 14, 1902.) 
 Distributive shares — Tax. 
 Bequest to a priest taxable: 
 A bequest to a priest for the purpose of paying for masses is not exempt from 
 legacy tax under the war-revenue law. (T. D. 7; January 6, 1900.) 
 
 Claims for refunding legacy tax: 
 
 Claims for refunding legacy tax paid in either error or excess should be made on 
 form 46 by the executors or administrators who paid the taxes. In cases 
 where the estates have been closed and the executors or administrators dis- 
 . charged, that fact should be clearly shown in the claims, and the names of the 
 several legatees who bore the burden of taxation and the amount borne by 
 each should be shown. Each claim should be further supported by a copy of 
 the will of the testator (unless a copy has been previously filed in this office) 
 and a copy of the return upon which the tax was assessed, and an amended 
 return should be made out in accordance with the law as construed by the 
 United States Supreme Court. (T. T). 143; June 2, 1900.) 
 Distributive share to illegitimate son: 
 
 A legacy from a reputed father to an illegitimate son, considered a stranger in 
 blood, is taxable, accordingly, at the rate of $5 for each and every $100 of the 
 clear value of such legacy, provided it exceeds $10,000. (T. D. 146; June 4, 
 1900. ) 
 Each distributive share taxable: 
 
 A legacy or distributive share is taxable to its full amount, where it exceed 
 $10,000, the liability to the tax and the rate being governed by the amount of 
 each separate legacy or distributive share, instead of the whole amount of the 
 personal estate from which the legacy or distributive share is derived. (See 
 T. D. 129; May 15, 1900.) (T. D. 158; June 14, 1900.) 
 
 It is the entire beneficial, interest of the legatee or distributee that is liable to 
 tax. (T. D. 202; August 18, 1900.) 
 Diplomatic corps — Stamp tax. 
 
 The diplomatic corps is exempt from stamp tax on entries of any goods, wares, 
 or merchandise at any custom-house, either for consumption or for ware- 
 housing. (T. D. 170; June 29, 1900.) 
 
88 
 
 Diplomatic corps — Stamp tax — Continued. 
 
 Where testator, a citizen of the United States, died abroad, leaving property in 
 the United States, his estate is prima facie liable. To exempt the property, as 
 that of a nonresident, it must be established that his residence abroad was his 
 permanent home, and that there was no intention of returning to the United 
 States and resuming his domicile here. (T. D. 506; April 21, 1902.) 
 Documentary stamp taxes. 
 
 Collectors may receive payment for documentary stamp taxes due under repealed 
 acts, reporting the same for assessment on list, and issuing receipt on Form 1 
 therefor. (T. D. 554; July 18, 1902.) 
 Documentary stamps on manifests not refundable: 
 
 There is no warrant for refunding documentary stamps used on manifests for 
 clearances of vessels for foreign ports. No authority for refunding such stamps 
 is found in either the decisions of courts or the acts of Congress. The evidence 
 required in claims for refunding stamp tax on export bills of lading must show 
 in each bill the date, the consignor, the consignee, the nature of the goods, 
 the ports from which and to which the shipment is made, and the name of 
 the vessel used for conveyance. (T. D. 597; November 24, 1902.) 
 Documentary stamps on export bills: 
 
 The Commissioner, with the approval of the Secretary of the Treasury, issues 
 rules and regulations, under the act of June 27, 1902, for refunding of amounts 
 paid for documentary stamps used on export bills of lading. (See Circular 
 No. 84. Int. Rev. No." 628.) (T. D. 546; July 8, 1902.) 
 Drafts — Stamp tax. 
 
 Drafts drawn with the words "at sight" erased and the words "on arrival of 
 goods" substituted, are drafts drawn otherwise than "at sight" oron demand, " 
 and are liable to stamp tax, the option being given to the drawee by the exer- 
 cise of which the draft may be payable at some time after sight. (T. D. 379; 
 July 13, 1901.) 
 Inheritance taxes: ' 
 
 The act of June 13, 1898, declared constitutional by the United States Supreme 
 Court. The tax is not direct within the meaning of the Constitution, but, on 
 the contrary, is a duty or excise. The uniformity clause of the Constitution 
 relates only to geographical uniformity. The phrase "whole amount of such 
 personal property as aforesaid" relates to the sum of each legacy or distribu- 
 tive share considered separately. Legacies not exceeding §510,000 are not taxed. 
 The rate of tax is progressively increased by the amount of each separate legacy 
 or distributive share, and not by the whole amount of the personal estate of 
 the deceased from which the legacies or distributive shares were derived. The 
 proposition that bonds of the United States and the income therefrom are not 
 lawfully taxable under an inheritance-tax law of the United States, because 
 exempted by contract from such tax, has been decided not to be well founded, 
 in the' case of Murdock, executor, r. John G. Ward, collector. (T. D. 129; 
 May 15, 1900.) 
 Refund of tax paid in excess or error: 
 
 Claims for amounts paid in excess or in error on legacies can be paid without 
 waiting for additional legislation by Congress. # They should be made by the 
 executor on Form 46 and supported by a copy of the return upon which the 
 tax was assessed.' If the estate has been closed and the executor or adminis- 
 trator discharged, the claim may be made by either the executor or the 
 legatees at law, in the individual names of the legatees or heirs at law. (T. 
 D. 213; September 14, 1900.) 
 
89 
 
 Drafts — Stamp tax — Continued. 
 Legacies in Government bonds taxable: 
 
 The tax on legacies is not a tax upon the property, in the ordinary sense of the 
 term, but upon the right to dispose of it. The Supreme Court has held that 
 legacies consisting of Government bonds are not exempt from tax. (T. D. 
 229; October 11, 1900.) 
 
 An itemized statement of legal debts and expenses is required, unless the collec- 
 tor is satisfied that the total amount of such debts and expenses does not con- 
 tain any item of legacy or distributive share. (T. D. 235; October 23, 1900.) 
 Dramshop bonds — Stamp tax. 
 
 Illinois dramshop not taxable under war-revenue law : 
 
 The Supreme Court of the United States, in decision rendered in October term, 
 1902, in the writ of error brought from the United States district court, northern 
 district of Illinois, held the dramshop act of the Illinois general assembly to 
 be the exercise of the police power of the State for the safety, welfare, and 
 health of the community, a power reserved to and by the States, and there- 
 fore free from Federal restriction. Hence the bonds required of dramshops 
 under the State law, and in pursuance of municipal ordinances in Illinois, are 
 not taxable within the war-revenue act of June 13, 1898, but are exempt from 
 stamp tax by the seventeenth section of that act. (T. D. 593; October 25, 
 1902. ) 
 Drawback — Philippine articles. 
 
 It being held that an allowance of drawback, under section 26, act of June 13, 
 1898, extends only to articles mentioned in Schedule B when exported to a 
 country beyond the- jurisdiction of the United States, and the Supreme Court 
 having decided that the Philippine Islands are domestic territory in relation' 
 to the United States tariff laws, the Comptroller of the Treasury rules that 
 there can be no allowance of drawback where the internal-revenue tax has 
 been paid on articles transferred or shipped to the Philippines. (T. D. 458; 
 January 6, 1902. ) 
 Drawback — Philippine shipments: 
 
 The Supreme Court having decided that the Philippine Islands are "domestic 
 territory," no drawback of internal-revenue taxes, where articles upon which 
 such tax has been paid are transferred to the Philippines, can be allowed 
 under the act of June 13, 1898. (T. D. 458; January 6, 1902.) 
 Duffy's Malt Whisky— Special tax. , 
 
 Druggists who sell Duffy's Pure Malt Whisky, a compound of distilled spirits 
 and drugs, under a label holding it out as a remedy for diseases, and sell it in 
 good faith for medicinal use only, never selling it as a beverage nor selling it 
 to those buying it for use as a beverage, are not required to pay special tax as 
 liquor dealers under the internal-revenue laws. (T. D. 445; December 11, 
 1901.) 
 Duty of^ecording- officers — Stamp tax. 
 
 The official record of a stampable instrument should invariably show" whether 
 the original was stamped, and the amount thereof. (T. D. 165; June 27, 1900.) 
 
 Recording officers should, in every instance where the instrument is stamped, 
 make proper notation on the record. (T. D. 215; September 25, 1900.) 
 
90 
 
 E. 
 
 Executor's sales — Special tax. 
 
 The executor of the estate of a person who had not been a liquor dealer, but 
 among whose assets are some packages of distilled spirits, is entitled to sell 
 these spirits in one parcel only or at public auction in parcels not less than 20 
 wine gallons without paying special tax therefor, in view of the exempting 
 provision of section 4, act of March 1, 1897. (T. D. 419; October 7, 1901.) 
 Entertainments — Special tax. 
 
 A small show, though combining some of the features of a circus, is required to 
 pay only the special tax of $10, but when it develops into a complete circus it 
 must then pay the special tax of $100. (T. D. 405; August 20, 1901. ) . 
 
 A scenic railway is not an "exhibition or show" within the meaning of the 
 eighth paragraph of section 2, act of June 13, 1898, and act of March 2, 1901. 
 Special tax is not required to be paid therefor. (T. D. 358; January 8, 1901.) 
 
 Entertainments of a musical character, given bya medicine vender, not collect- 
 ing pay therefor, but designed to call together a crowd for the purpose of sell- 
 ing medicines, are not liable to special tax. (T. D. 294; March 7, 1901.) 
 
 In a city having a population of more than 25,000, every building wherein there 
 is a stage, with other appointments of a theater, regularly used for "dramatic 
 or operatic or other representations, plays, or performances, for admission to 
 which entrance money is received," is a theater in contemplation of the sixth 
 paragraph of section 2, act of June 13, 1898, and the fifth paragraph of section 
 2, act of March 2, 1901, for which the special tax of $100 is required to be paid. 
 (T. D. 416; October 4, 1901.) 
 
 Where exhibitions, as in the Pan-American Exposition, are held in separate 
 buildings to which a separate price of admission is charged, it is held that a 
 separate special-tax stamp must be taken out for each. (T. D. 357; June 8, 
 1901.) 
 
 Where a gramophone exhibition is given in connection with temperance lec- 
 tures by any person for his own pecuniary profit, he is required to pay special 
 tax therefor. (T. D. 448; December 13, 1901.) 
 Excess of tobacco purchase — Special permits. 
 
 Where there is a purchase of leaf tobacco by manufacturers largely in excess of 
 the demands of their factories, for the purpose of reselling to other manufac- 
 turers, the ruling .is that collectors shall refuse to issue special permits author- 
 izing the sales, if the manufacturers are engaged in the business of dealers in 
 leaf tobacco. Such persons are required to make return and pay special 
 taxes as dealers in leaf tobacco outside of the bonded premises. (T. D. 373; 
 June 27, 1901.) 
 Exhibitions and shows — Special tax. (See also Circuses; Theaters. ) 
 Amateur entertainments exempt: 
 
 Amateur theatrical exhibitions, either in private houses or licensed public halls, 
 for church or charitable benefits, are not such performances as are taxable 
 under the law. (T. D. 19752; July 23, 1898.) 
 
 A boxing exhibition to which an admission fee is charged is a public exhibition 
 for money, even though no profit is derived therefrom, and special tax is 
 required to be paid therefor. (T. D. 20486; January 3, 1899.) 
 Church entertainments nontaxable: 
 
 The ordinary church or Sunday-school entertainment, without any hired per- 
 formers, does not come under the head of public exhibitions or shows for 
 money contemplated by the law. (T. D. 19751; July 22, 1898.) 
 
91 
 
 Exhibitions and shows — Special tax — Continued. 
 Patent- medicine " shows " taxable: 
 
 Venders of patent medicines, who give musical entertainments and concerts in 
 tents, some of which are variety performances, to which admission at times is 
 free and, at other times, a nominal admission is charged, must pay a tax of 
 $10 for any State in which performances are given in the month of July and, 
 after July the special tax is reckoned from the latter month under provisions 
 of section 3237, Revised Statutes. (T. D. 19749; July 22, 1898.) 
 A show for money is taxable: 
 
 A concert company giving an entertainment, with regular charges of admission 
 (not for any church, charitable, or other public object), is required to pay 
 special tax under paragraph 8 of section 2, act of June 13, 1898. (T. D. 20501, 
 January 5, 1899. ) 
 
 A special tax is not required for entertainments given by church or Sunday- 
 school assemblies, on grounds to which an admission fee is charged. (T. D. 
 21366? July 6, 1899.) 
 
 Piano playing by one person, or music furnished by a music box or orchestrion, 
 is neither a concert nor a show or exhibition; special tax is not required to be 
 paid therefor. (T. D. 20679; February 6, 1899.) 
 
 Where the admission fee charged for a skating rink is merely to entitle the per- 
 sons paying it to the privilege of skating, special tax is not required to be paid 
 therefor; but where it entitles them to witness the exhibition of skating, it is a 
 public exhibition or show for money for which special tax is required to be 
 paid. Special tax is required to be paid for "indoor baseball " exhibitions and 
 "crystal maze" exhibitions to which an entrance fee is charged. (T. D. 
 20499; January 4, 1899.) 
 
 The proprietor of an opera house in a town whose population is less than 25,000, 
 who himself gives no exhibitions therein, is not required to pay and special 
 tax therefor under section 2 of the war-revenue act. (T. D. 20500; January 
 
 5, 1899. ) 
 
 Where an amusement company has several different companies playing at the 
 same time at several places in the same State, separate special tax is required 
 to be paid and a separate stamp taken out for each. (T. D. 20504; January 
 
 6, 1899.) 
 
 The requisite special-tax stamp is required to be held for entertainments given 
 for money by quartettes and concert companies for the profit of those concerned 
 therein. (T. IX 20543; January 11, 1899.) 
 
 Special tax is required where lecture bureaus or other like organizations send out 
 lecturers giving stereopticon or other illustrations, or where concert or other 
 companies give exhibitions for their own pecuniary profit. (T. D. 20609; 
 January 24, 1899. ) 
 
 Special tax is not required to be paid by proprietors of stores for a musical enter- 
 tainment by a band hired by them for the entertainment of their customers. 
 (T. D. 20722; February 18, 1899.) 
 
 Amateur clubs not taxable: 
 Amateur clubs or local organizations giving exhibitions, even though they charge 
 an admission price, are not required to pay special tax therefor if the proceeds 
 thereof are not for the pecuniary profit of the clubs or associations, but are 
 devoted to some charitable or public object and payment of expenses. (T. D. 
 20840; March 14, 1899.) 
 Ignorance of law does not excuse from criminal liability: 
 It is the duty of proprietors of exhibitions or shows for money to inform them- 
 selves as to the requirements of the law relating to their business, and to ascer- 
 
92 
 
 Exhibitions and shows — Special tax — Continued. 
 Ignorance of law does not excuse from criminal liability — Continued. 
 
 tain the name and address of the collector in each district in which their 
 special-tax liability begins, and to pay the requisite special tax. Failing to do 
 so, they are criminally liable under section 4, act of June 13, 1898. (T. D. 
 20783; March 1, 1899.) 
 Where there are no admission fees, no tax: 
 
 An entertainment given by a railway company, to which no admission price is 
 charged, is not regarded as an exhibition or show for money under the eighth 
 paragraph of section 2, act of June 13, 1898. Contrary ruling revoked. (T. D. 
 21559; August 30, 1899.) 
 
 In the absence of an express statutory provision exempting county fair associa- 
 tions from special tax for fairs given by them, it is held that the tax must be 
 paid under the eighth paragraph of section 2, act of June 13, 1898. (T. D. 
 21665; October 10, 1899.) 
 
 Special tax is not required to be paid by proprietors of restaurants or cafes for 
 employing bands of music or orchestras during meal hours for the benefit of 
 their patrons, no admission price being charged and no performance or exhibi- 
 tion being given in connection therewith. Former rulings tending to a differ- 
 ent conclusion are modified in accordance herewith. (T. D. 21522; August 
 22, 1899.) 
 
 Special tax is not required to be paid for bands of music playing in saloons to 
 which no price of admission is charged, and where persons visiting such places 
 are not under any obligation to buy, even though the proprietors "expect 
 people who go there to buy drinks." (T. D. 21636; September 28, 1899.) 
 
 Baseball games given by college and amateur or local clubs are not such exhibi- 
 tions as require payment of special tax. They are distinct from baseball exhi- 
 bitions given by professional clubs as a regular business for money. (T. D. 
 21051; April 24, 1899.) 
 
 Special-tax stamp for circus: 
 The hundred-dollar special-tax stamp for a circus does not cover an entertain- 
 ment given as a side show, for. admission to which a price, is charged additional 
 to the cost of the circus ticket. A separate special-tax stamp must be taken 
 out under the eighth paragraph of section 2, act of June 13, 1898, for such side 
 show. (T. D. 21191; May 25, 1899.) 
 
 Moving band of music nontaxable: 
 Special tax is not required to be paid by bands of music — for instance, Italian 
 and German bands — going from place to place and playing from time to time 
 in liquor saloons. (T. D. 21317; June 27, 1899.) 
 
 Special tax for music hall at summer resort: 
 The special tax of $10 only is required to be paid for the hall in the grounds of a 
 summer resort where performances are given from time to time during the 
 summer season. Though these grounds are within the limits of a city of a 
 population of 25,000 or more, such hall is not a theater building or concert' 
 hall within the meaning of the sixth paragraph of section 2, act of June 13, 
 1898, for which the $100 special-tax stamp is required to be taken out. (T. D. 
 21319; June 27, 1899.) 
 
 Proprietors of exhibition companies taxable: 
 In case of an exhibition or show for money given on a boat moving from place 
 to place on rivers, the proprietor must hold a special-tax stamp for each State 
 in which the boat lands and such exhibition is given. (T. D. 225; October!), 
 1900. ) 
 
93 
 
 Exhibitions and shows— Special tax— Continued. 
 
 Proprietors of exhibition companies taxable— Continued. ' 
 
 Singing by one person, with piano accompaniment, though an admission price 
 is charged thereto, is not an exhibition or show within the meaning of the 
 eighth paragraph of section 2, act of June 13, 1898, and special tax is not 
 required to be paid therefor. (T. D. 20951; April 3, 1899. ) 
 
 Singing and playing on the public streets to attract a crowd for the sale of medi- 
 cine can not fairly be regarded as an exhibition or show for money within the 
 meaning of the eighth paragraph of section 2, act df June 13, 1898, and special 
 tax is not required to be paid therefor. (T. D. 230; October 11, 1900.) 
 
 Where a company whose business it is to go from place to place giving exhibi- 
 tions for money is engaged by any local organization to give such an exhibition, 
 it is not the local organization or association that is required to pay the special 
 tax; nor is a lyceum bureau, which is not the proprietor or agent of such com- 
 pany, but merely makes a contract with the local organization, subject to 
 such tax. The proprietor or agent of such company is the person who should 
 make return to the collector of the district in any State in which the company 
 exhibits, pay the special tax, and take out the requisite stamp for that State. 
 (T. D. 20880; March 17, 1899.) 
 Special tax under section 2, war-revenue law: 
 
 Special tax is not required to be paid by an association of citizens of any town 
 or city for street fairs given by them without pecuniary profit to the associa- 
 tion or any member or officer thereof. Proprietors or agents of shows hired 
 by the association, to which a price of admission is charged, must themselves 
 hold the special-tax stamp contemplated by the eighth paragraph of section 2, 
 act of June 13, 1898, for each public exhibition or show for money. (T. D. 
 251; November 26, 1900.) 
 Poultry shows, not for profit, nontaxable: 
 
 A poultry show or other exhibition given by an association, for admission to 
 which money is collected, not for the pecuniary profit of any member of the 
 association, but merely to cover expenses incurred, is not such a public exhi- 
 bition or show for money as is contemplated by paragraph 8, section 2, act of 
 June 13, 1898, and special tax is not required to be paid therefor. (T. D. 253; 
 December 4, 1900. ) 
 
 A "home talent" exhibition given for the benefit of a school, or by a ladies' 
 sewing circle, for a public. benefit, is not among the "public exhibitions or 
 shows for money" for which special tax is required to be paid. (T. D. 21| 
 January 24, 1900.) 
 
 A company giving exhibitions of pictures to which an admission fee is charged 
 for the pecuniary profit of the company is required to pay special tax under 
 the eighth paragraph of section 2, act of June 13, 1898. (T. D. 22; January 
 24, 1900. ) 
 
 Special tax is not required to be paid for a poultry show to which an admission 
 price is charged simply to pay the expenses, and not for the pecuniary profit, 
 of the association giving the show or of any of its members. (T. D. 26; Janu- 
 ary 27, 1900. ) 
 National soldiers' home not taxable: 
 
 A national soldiers' home is not required to pay special tax for employing theat- 
 rical companies to give performances, for admission to which a price is charged, 
 the proceeds being devoted to the amusement fund of the home; but the pro- 
 prietor or agent of every such company giving exhibitions for money must 
 hold the requisite special-tax stamp under the eighth paragraph of section 2,, 
 act of June 13, 1898. (T. D. 47; February 19, 1900.) 
 
94 
 
 Exhibitions and shows — Special tax — Continued. 
 National soldiers' home not taxable — Continued. 
 A "concert or after show" given in the principal tent at the conclusion of the 
 main show to those who choose to remain, paying a small sum in addition to 
 the cost of the ticket to the main, show, is held not to be a separate show for 
 which an additional special tax is required to be paid. (T. D. 148; June 5, 
 1900. ) 
 An entertainment, with music, given by a firm of merchants to attract the public 
 to an annual display in connection with their store, is held not to be a public 
 exhibition or show for which special tax is required to be paid under section 2 
 of the war-revenue act. (T. D. 20319; November 11, 1898.) 
 
 Exhibition by fraternal society not taxable: 
 
 A fair or entertainment given by a fraternal organization, the proceeds of which 
 are to be devoted to "sick benefits " or like objects, is held not to be such an 
 exhibition or show as is contemplated by the eighth paragraph of section 2 of 
 the act of June 13, 1898; special tax is not required to be paid therefor, nor is 
 special tax required to be paid under that paragraph for a "harvest home 
 festival." (T. D. 20367; November 21, 1898.) 
 
 Lectures on chemistry and physics, accompanied by the necessary experiments, 
 are not among the public exhibitions or shows for money contemplated by 
 the eighth paragraph of section 2 of the act of June 13, 1898, for which special- 
 tax is required to be paid. (T. D. 20315; November 10, 1898. ) 
 
 Special tax is not required to be paid for lectures with a pianoforte recital inci- 
 dental thereto. (T. D. 20314; November 10, 1898.) 
 
 The occasional playing of a band in a city park, although it is paid by a railroad 
 company, subjects neither the band nor the company to special tax. (T. D. 
 20273; October 31, 1S9S.) 
 
 Where a fair association hires a man at a stated salary to furnish a special attrac- 
 tion (chariot races, hippodrome races, and "a few Wild West acts"), the 
 special tax should be paid by the association and not by the man hired. (T. 
 J). 20271; October 31, 1898.) 
 
 Paragraph 8, war-revenue law: 
 A person who has a ' ' store sho w " consisting of a " few monkeys, one panther, 
 
 two leopards, some snakes, canary birds, and parrots," and also " two or three 
 
 illusions," is not taxable as a circus under paragraph 7, section 2, war-revenue 
 , act, but under paragraph 8, war-revenue act, and the special tax of $10 is 
 
 reckoned from the first day of the month in which it was opened to the 1st of 
 
 July following. (T. D. 20238; October 24, 1898.) 
 An amateur theatrical entertainment for the benefit of a fire department is held 
 
 not to be subject to special tax as a public exhibition or show for money. 
 
 (T. D. 20242; October 25, 1898.) 
 Although the public is not charged for admission to the parlor, hall, or place of 
 
 exhibition, yet, as the phonographs are kept there for the purpose of making 
 
 money, they are to be regarded as shows for money within the meaning of the 
 
 law, and special tax must be paid for such exhibition, parlor, or hall. (T. D. 
 
 20261; October 26, 1898.) 
 A harvest show, with an evening entertainment by local talent, for the benefit 
 
 of a grange, is not required to pay special tax as an exhibition or show. (T. D. 
 
 20124; October 3, 1898. ) 
 Concert halls in cities having more than 25,000 population, as shown by the last 
 
 census, to which a nominal entrance fee is charged, are subject to special tax. 
 
 (T. D. 20270; October 31, 1898.) 
 
95 
 
 Exhibitions and shows— Special tax— Continued. 
 Paragraph 8, war-revenue law— Continued. 
 
 No special tax is required to be paid for an illustrated lecture if the money 
 derived therefrom is devoted exclusively to the use of an educational associa- 
 tion. (T. D. 20123; September 30, 1898.) 
 Fortune telling not liable to special tax: 
 
 An athletic association giving exhibitions on its field or within its inclosed 
 grounds, for money, is required to pay special tax under the eighth paragraph 
 of section 2 of the act of June 13, 1898. (T. D. 20190; October 12, 1898. ) 
 
 The telling of fortunes for money is not such a business or exhibition as involves 
 the fortune teller in special-tax liability under section 2, act of June 13, 1898. 
 (T. D. 20165; October 11, 1898.) 
 
 Special tax is not required to be paid for an occasional game of football, base- 
 ball, or other game given by local clubs where an admission price is charged, 
 not for profit, but merely to cover expenses. (T. I). 20228; October 19, 
 1898. ) 
 
 Special tax is not required to be paid under section 2 of the act of June 13, 1898, 
 for mere lectures, readings, or declamations by lecturers or elocutionists who 
 exhibit no pictures or shows of any kind. (T. D. 19977; August 30, 1898.) 
 
 Agricultural society, presenting horse races, etc., taxable annually: 
 
 An agricultural society presenting, as an incident to the horse races, ball games, 
 and the usual exhibits of a county fair, a show which includes some "acro- 
 batic sports," etc., is not required to pay special tax as a circus under para- 
 graph 7 of section 2, act of June 13, 1898, but should pay special tax at the'rate 
 of §10 for the year, under paragraph 8. (T. D. 20029; September 9, 1898.) 
 
 A variety performance given in a saloon "without cost," the patrons of which, 
 however, are expected to buy drinks, is subject to special tax of $10 under 
 paragraph 8 of section 2, act of June 13, 1898. (T. D. 19976; August 30, 1898.) 
 
 A club giving exhibitions, not for any charitable or public objects, but solely for 
 its own benefit, is required to pay special tax at the rate of $10 under para- 
 graph 8 of section 2 of the war-revenue act. (T. D. 20032; September 13, 
 1898.) 
 
 A railroad company which has a park to promote excursions, although no admit- 
 tance is charged, and no charge is made for reserved seats, must pay a special 
 tax as an exhibition or show for money. (T. D. 20064; September 16, 1898.) 
 
 Exhibitions of fair associations are required to pay the special tax of $10, under 
 paragraph 8, section 2, act of June 13, 1898. (T. D. 19960; August 24, 1898. ) 
 
 Entertainments for money, exhibiting the speed of greyhounds in what are 
 known as "rabbit races," are subject to special tax under paragraph 8, section 
 2, act of June 13, 1898. (T. D. 19967; August 26, 1898.) 
 
 Exhibitions at parks, beer gardens, or places of resort outside of corporate limits 
 of large -cities are subject to tax of $10 under paragraph 8 of section 2, act of 
 June 13, 1898. (T. D. 19968; August 27, 1898.) 
 
 Special tax is not required to be paid under paragraph 8 of section' 2 of the act 
 of June 13, 1898, for the artoscope, a nickel-in-slot machine, set up in stores or 
 other places, automatically showing pictures from the dropping of a nickel 
 into the slot; but if, in an exhibition hall, a number of these machines be set 
 up, the proprietor of such hall or public place of exhibition must pay special 
 tax under that paragraph. (T. D. 20121; September 30, 1898. ) 
 
 Trustees or owners of a public hall which is only occasionally used for purposes 
 of entertainments, embracing lyceum lectures, school exhibitions, dances, etc., 
 not required to pay special tax. (T. D. 19941; August 23, 1898.) 
 
96 
 
 Exhibitions and shows — Special tax — Continued. 
 Variety shows for money, liable to special tax: 
 
 Exhibitions and shows given on fair grounds, but not under management and 
 control of the fair association holding special-tax stamp, are required to pay- 
 separate special tax. (T. D. 19826; August 4, 1898.) 
 
 The show of a medicine vender (consisting of various "athletic, humorous, and 
 comic performances," there being given also an exhibition of ropewalking 
 and trapeze performance, the object being merely to attract a crowd) liable to 
 a tax of S10 under paragraph 8, act of June 13, 1898, instead of $100 under 
 paragraph 7. (T. D. 19830; August 4, 1898.) 
 
 Variety shows, for which no admission fee is charged, but which are a combina- 
 tion of dialogue and song and acrobatic feats, it being expected that everyone 
 who enters will patronize the place by purchasing either beer or other drinks, 
 are liable to special tax under section 2, act of June 13, 1898, and section 3237, 
 Revised Statutes. (T. D. 19753; July 23, 1898.) 
 Horse-race exhibitions: 
 
 The special tax for horse-race exhibitions, which are mere tests of the speed of 
 horses, is required to be paid under paragraph 8, second section, act of June 
 
 13, 1898, reckoned from the first day of the month in which they begin. 
 (T. D. 19873; August 10, 1898.) 
 
 Evidence — Unstamped instruments. 
 
 Instruments are inadmissible as evidence in Federal courts unless stamped as 
 required by law. Authorities differ as to whether they can be admitted as 
 evidence in State courts. The question has not been adjudicated by the 
 Supreme Court of the United States. In the case of Campbell v. Wilcox (10 
 Wall, 421), it was stated that the penalty of the statute was aimed at the 
 fraudulent, and not the accidental omission of a stamp. (T. D. 474; February 
 
 14, 1902. ) 
 Exchanging 1 old for new stamps. 
 
 In order to prevent, under act of April 12, 1902, loss to the Government, and 
 confusion and delay in settling accounts, collectors should advise brewers and 
 manufacturers of tobacco and snuff to purchase as few stamps of the old issue 
 as will meet their requirements until July 1, 1902, and collectors should order 
 from this office beer, tobacco, and snuff stamps of the present rate of tax in 
 sufficient quantities only to meet current demands, in order that their stock 
 of such stamps to be returned on June 30 may be reduced as low as possible. 
 (T. D. 503; April 16, 1902.) 
 Exchanging stamps under act of 1902: 
 
 When exchanging beer, tobacco, and snuff stamps, under the provisions of the 
 act of April 12, 1902, the collector should accompany each lot of stamps by a 
 schedule of the stamps presented for exchange, setting forth in columns under 
 appropriate headings the number of each denomination and the amount of 
 cash paid. There should be presented with said stamps and schedule an order 
 for stamps at the new rate of tax, specifying the denominations desired. The 
 total value of the new stamps ordered should be made to correspond as nearly 
 as possible to the total Value of the old stamps returned for exchange. (T. D. 
 503; April 16, 1902.) 
 Excise tax — Sugar refining. 
 
 Section 27, act of June 13, 1898, imposing a tax on gross annual receipts of sugar 
 refiners exceeding $250,000, is constitutional; receipts from capital invested in 
 wharves are taxable; receipts accruing from interest from funds deposited in 
 banks or invested in income-producing securities are taxable. The circuit 
 
97 
 
 Excise tax — Sugar refining — Continued. 
 
 court erred in holding that the plaintiff was required to pay the taxes other- 
 wise than annually. (T. D. 462; January 20, 1002.) 
 
 Exchanges, boards of trade, etc. (See also Decisions 21279, 21315.) 
 ■ Decision of United States Supreme Court, October term, 1898. The provision 
 relating to sales or agreements to sell products or merchandise at any exchange 
 or board of trade, or other similar place, and requiring the seller to give a bill 
 or memorandum which shall be stamped, declared constitutional. Sales of 
 live stock at stock yards come within the law, the same being a similar place- 
 to an exchange or board of trade. (T. D. 20984; April 7, 1899.) 
 The law holds that, to constitute an exchange, board of trade, or other similar 
 place, as described by the statute, there must be more than one person, com- 
 pany, or partnership authorized to negotiate sales thereat. (T. D. 21148; May 
 10, 1899. ) 
 
 Exemptions — Special tax. 
 
 Amendment of Schedule A: 
 The amendment of Schedule A, war-revenue law, applies only to persons, com- 
 panies, or corporations engaged in carrying on an express business exclusively, 
 and not to railroad companies. (T. D. 380; July 13, 1901.) 
 
 Section 3246, Revised Statutes: 
 By the provisions of section 3246, Revised Statutes, a druggist is permitted to keep 
 spirits and wines, and use them, in combination with drugs, in the preparation 
 of medicines that are not beverages, and to sell such medicines without paying 
 special tax as a liquor dealer under the internal-revenue laws of the United 
 States. But under the uniform rulings of this office and the decisions of the 
 United States courts he can not, without subjecting himself to this special tax, 
 sell spirits or wines that are not combined with drugs or materials of any kind 
 taking these liquors out of the class of beverages, even when he sells the 
 liquors on a physician's prescription and for medicinal use only. (T. D. 421; 
 October 18, 1901.) 
 
 Exemption of distillers of fruit brandy: 
 Under section 3255, Revised Statutes, amended, the Commissioner of Internal 
 Revenue, with the approval of the Secretary of the Treasury, may exempt from 
 special tax distillers of brandy from fruits, when in his judgment it may seem 
 expedient to do so. (T. D. 275; February 9, 1901.) 
 
 Exemption of railroad selling wine to pay freight: 
 
 Where separate consignmemts of packages of wine are held by a railroad for non- 
 payment of freight, the special tax of a liquor dealer under the internal-revenue 
 laws of the United States is not required to be paid for separate sales of these 
 packages of wine if each consignment is sold as one parcel, in view of the 
 exempting provision of section 4, act of March 1, 1879 (Compilation 1900, p. 
 126). (T. D. 829; September 24, 1904.) 
 
 Execution of warehouse bond: 
 Warehousing bonds, and other bonds given under internal-revenue laws, are not 
 to be accepted when executed by one person as the agent or attorney for both 
 the principal and surety. (T. D. 780; April 22, 1904. ) 
 
 Export bond — Fermented liquor: 
 Where the failure to export fermented liquor or to furnish proof of exportation 
 is due to no fault or negligence, the penalty conditioned in the brewer's export 
 bond (Form A) need not be enforced, and the tax only on such liquor will 
 hereafter be assessed and collected. • (T. D. 540; June 26, 1902.) 
 
 31331—05 7 
 
98 
 
 Express receipts— Stamp tax. 
 
 Express receipts for goods and merchandise to be transported from the United 
 States to a foreign country not exempt from tax under decisions of United 
 States Supreme Court in the matter of export bills of lading. (T. D. 334; 
 April 26, 1901.) 
 
 The exemption of express companies from giving stamped receipts for goods 
 received by them for transportation made by the act of March 2, 1901, amend- 
 ing Schedule A, act of June 13, 1898, does not apply to railroad companies. 
 (T. D. 380; July 23, 1901.) 
 Goods transported to a foreign country require to be stamped: 
 
 The decision of the United States Supreme Court declaring the tax on export 
 bills of lading unconstitutional was expressly confined to export bills of lading, 
 the question of express receipts not being considered by the court. It is held, 
 therefore, that express receipts given in the United States for goods to be 
 transported to a foreign country are required to be stamped. (T. D. 334; 
 April 26, 1901.) 
 Express and freight — Stamp tax. 
 
 Receipts issued by .special-delivery transfer companies for special-delivery bag- 
 gage are not subject to tax. The Treasury decision No. 21668 is revoked. 
 (T. D. 13; January 9, 1900.) 
 
 The express check or receipt given for a bicycle transported on a passenger train, 
 along with the owner, is not subject to taxation. (T. D. 62; March 8, 1900.) 
 
 Mail carriers who make a regular practice of carrying packages from town to 
 town must issue stamped receipts. (T. D. 63; March 8, 1900.) 
 
 Express companies are not forbidden to shift the burden of the stamp tax by an 
 increase of rates which are not unreasonable. (T. D. 100^ April 18, 1900.) 
 
 Every carrier receiving goods for domestic transportation is under an absolute 
 obligation to issue a stamped receipt therefor, under a penalty for failure of 
 $50 for each offense. See revenue circular No. 570. (T. D. 126; May 14, 
 1900.) 
 
 F. 
 
 Fermented liquor. 
 Act of July 24, 1897: 
 
 The decision of the United States circuit court of appeals for the seventh circuit, 
 in the case of Coyne, Collector, v. Manhattan Brewing Company, accepted as 
 final. The act of July 24, 1897 (30 Stat., 206), which repealed the provision of 
 section 3341, Revised Statutes, that the Commissioner, of Internal Revenue 
 should allow upon all sales of beer stamps to any brewer, and by him used in 
 his business, a deduction of 7£ per cent, did not affect the tax-paying value of 
 stamps purchased before it went into effect, and upon which the deduction 
 was allowed, but which were not used until after it went into effect. (T. D. 
 175; July 7, 1900.) 
 Bate of tax on beer: 
 In opinion rendered by the Attorney-General June 2, 1900, on the question of 
 the rate of tax on beer in storage June 14, 1898, it is held that the rate, under 
 section 3339, Revised Statutes, was $1.85 per barrel, and not $2. (T. D. 144; 
 June 4, 1900. ) 
 Fire insurance companies. 
 Assigned policies taxable in proportion to unearned premium: 
 
 Policies of fire insurance when assigned or transferred to a new holder or owner 
 are subject to taxation in proportion to the unearned premium. (T. D. 20068; 
 September 19, 1898. ) 
 
99 
 
 Fire insurance companies— Continued. 
 Premium notes taxable: 
 
 £!tamp tax must be paid on premium notes as well as on the policies issued on 
 such notes. Premium notes, representing the amount of premium stated in 
 the policy, are taxable as promissory notes in Schedule A, war-revenue act. 
 (T. D. 19620; July 2, 1898.) 
 Exemption from tax of cooperative companies: 
 
 The provision in the act of June 13, 1898, exempting purely cooperative or 
 mutual fire insurance companies from stamp tax, was intended to apply to only 
 those companies where a number of persons associated themselves together as 
 companies or cooperative associations in business to be carried on by the 
 members solely for the protection of their own property and for nothing 
 more. Whenever the business of the association or company goes beyond the 
 point of protection for their own property, such association or company is 
 taken out of the exemption. (T. D. 19651; July 7, 1898.) 
 Keinsnrance of fire policies: . 
 
 Eeinsurance may be effected in two ways, viz: First, by a general contract or 
 written agreement whereby the acceptance of a risk by one company imme- 
 diately binds the second, or the same effect is produced by entries for specific 
 causes. This form of reinsurance is not subject to taxation. The second 
 form is where, by reason of extra-hazardous risk, the reinsurance requires an 
 extra premium, protecting the primary insuring company against an appre- 
 hended loss. The amount of such extra premium subjects to taxation the 
 policy of the reinsuring company. (T. D. 19963; August 24, 1898.) 
 Reinsurance of insurance policies: 
 
 The reinsurance of insurance policies in other companies is not taxable, pro- 
 vided the whole amount of tax due upon the insurance actually taken is paid 
 by the stamps affixed to the policy of the insuring company, there being only 
 an agreement to share in the obligation and responsibility for the insurance 
 already taken. Where, however, the reinsurance is sought because the risk 
 is extra hazardous, the extra premium is taxable and the amount thereof 
 must be set forth in the entry and register of insurance and the proper stamp 
 affixed to the margin of the page in the register. (T. D. 19836; August 5, 1898. ) 
 
 Wherever the receipts of a mutual insurance company are in excess of losses and 
 expenses, and said excess is invested in income-bearing securities, its policies 
 are subject to stamp tax under the war-revenue act. (T. D. 20020; September 
 2, 1898.) 
 
 Insurance policies issued and delivered in the United States affecting the life 
 and property of residents of this country are liable to stamp tax, whether the 
 issuing companies be foreign or domestic. (T. D. 20034; September 14, 1898.) 
 Filter in manufacturing wine. 
 
 A manufacturer of wine who sells his wine strictly within the terms of the 
 exempting provision of section 3246, Eevised Statutes, and does not deal in 
 distilled spirits or other alcoholic liquors, and, therefore, does not hold a 
 special-tax stamp as a liquor dealer under the internal-revenue laws of the 
 United States, is not required to pay special tax as a rectifier for having a filter 
 on his premises and using it only in the mechanical clarification of his wine 
 by the removal of extraneous substances floating therein. (T. D. 822; August 
 31, 1904.) 
 Filled cheese— tax on goods exported. 
 
 Construction by the United States Supreme Court of the constitutional provision 
 prohibiting Congress from laying a tax on exports. No objection to the impo- 
 sition of the same tax on filled cheese manufactured for export, and in fact 
 exported, as upon other filled cheese. (T. D. 757; March 4, 1904.) 
 
100 
 
 Forms 23J and 476. 
 
 So much of regulations No. 1, prescribed October 29, 1900, as relates to the 
 preparation and disposition of Forms 23$ and 476, and requiring the use of 
 column 11, Form 23, for every monthly list, as directed in Circular 582, and 
 on pages 164 and 165 of said regulations, is hereby modified so that such use 
 shall apply only to the lists for the months of December, March, June, and 
 September of each year, and that for the other eight months of the year the 
 whole amount of the lists will be receipted for in full on Form 23 $, no Form 476 
 being required for those months except in case of change of collectors (Regs. 
 No. 1, p. 169), or the renewal of a collector's bond, which will be treated in 
 the same manner. (T. D. 426; October 30, 1901.) 
 Form 499 — Renovated butter. 
 
 All renovated butter returned to the factory should be noted on the report, 
 Form 499, under a special heading written across the page, as follows: 
 "Special account of tax-paid renovated butter returned to the factory." 
 (T. D. 596; November 17, 1902.) 
 Forfeiture of distillery. 
 
 Forfeiture in case of fraud embraces interest of distiller, and of every person who 
 has knowingly permitted the business of a distiller to be there carried on, or 
 has connived at the same. (T. D. 589; October 17, 1902.) 
 Fortified sweet wines: 
 
 Sweet wines fortified with spirits free from tax can not be used by a rectifier in 
 the production of imitation, spurious, or compound liquors. (T. D. 539; June 
 26, 1902. ) 
 Fractional excesses. 
 
 Collectors are advised that hereafter, in accounting for excesses arising from 
 fractions, they shonld enter on Form 58 the items of excess collected from 
 different classes of stamps, designating the amount of excess arising from each 
 kind of stamps, respectively, as "Special-tax stamps, six cents," "Distilled- 
 spirits stamps, twelve cents," etc., from which the excess arises. These 
 amounts will then be receipted for, in the aggregate, on Form No. 476. This 
 manner of accounting for excesses arising from fractions obviates the necessity 
 of entering them on Form No. 79, or in the margin of Form 51, as heretofore. 
 (T. D. 280; February 14, 1901.) 
 
 Records of daily receipts should show the amount actually collected from each 
 taxpayer, which amount should in no case be less than the face value of the 
 stamps sold. When the face value includes a fraction the final figure for cents 
 should be the next higher. This usually creates what is called an excess. 
 Fractions of a cent should never be entered in the records of daily receipts. 
 (T. D. 289; February 25, 1901.) 
 
 a. 
 
 Gauging- spirits. 
 
 Spirits produced and ganged after January 1, 1899: 
 Circular No. 635, issued to collectors, advises that the act of March 3, 1899, has 
 no application whatever to spirits produced and originally gauged on or after 
 January 1, 1899. It follows, therefore, that such spirits are entitled to be 
 regauged in warehouse only on request made prior to the expiration of four 
 years from the date of original gauge as to fruit brandy, or original entry as to 
 all other spirits, as required by section 50 of the act of August 28, 1894, and 
 that such spirits are subject to all the limitations prescribed by said section 50, 
 under which the maximum allowance for loss of spirits in bond is fixed at 9 
 gallons. (T. D. 601; December 3, 1902.) * 
 
101 
 
 Gauging spirits— Continued. 
 
 Gauging sweetened and unsweetened spirits: 
 Referring to gauging sweetened and unsweetened spirits the Commissioner 
 relaxes the rule previously enunciated, and now rules that where the intro- 
 duction of saccharine matter into the product of rectification gives rise to a 
 difference of as much as 10 per cent between the actual known proof and the 
 apparent proof, and where at the same time the product is properly known to 
 the trade by some other name than a simple name ordinarily applied to the 
 unsweetened product of a distillery, as whisky, rum, gin, brandy, etc., with- 
 out other modification, such product may properly be classified as sweetened 
 spirits and gauged, marked, branded, stamped, and reported in the manner 
 provided for sweetened spirits in Circular 556. (T. D. 511; April 29, 1902.) 
 
 Standard of "devices" for caution notices: 
 The Bureau of Internal Revenue has not adopted and will not adopt "a stand- 
 ard" of devices as to "caution notices," or trade labels, for the use of whole- 
 sale liquor dealers, upon single-stamped spirits, but holds that in case of the 
 seizure of a package of spirits as being subject to forfeiture under section 17, 
 act of January 8, 1875 (sec. 3316a), it would be for the jury to say, if the pack- 
 age were libeled, whether the device used was in the resemblance or had the 
 general appearance of an internal-revenue stamp required for spirits. (T. D. 
 507; April 27, 1902.) 
 
 Ginger stout — Special tax. 
 
 A beverage made from various roots and herbs and fermented comes within the 
 . class of root beers, and if no alcoholic liquor of any kind is added to it special 
 tax is not required to be paid under the internal-revenue laws for its manu- 
 facture and sale. (T. D. 776; April 13, 1904.) 
 
 Ginger ale under Schedule B. 
 
 Ginger ale held not to be liable to taxation under Schedule B, act of June 13, 
 1898, unless specially advertised as medicinal, and not liable under section 
 3339, Revised Statutes, as a similar fermented liquor to ale, beer, etc. Hop 
 ale held liable to tax as fermented liquor under section 3339, Revised Statutes, 
 and the venders thereof to special tax as malt-liquor dealers. (T. D. 19616; 
 July 2, 1898.) 
 
 Gross receipts. 
 
 Referring to the recent decision of the United States circuit court of appeals, in 
 the case of the Spreckels' Sugar Refining Company v. McClain, collector (T. D. 
 462), to the effect that the tax imposed by section 27, act of June 13, 1898, on 
 gross receipts, is payable annually — that is, at the expiration of each annual 
 period — assessments of the tax in such cases will hereafter be made at the 
 expiration of each special-tax year. (T. D. 488; March 15, 1902.) 
 
 H. 
 
 Hawaiian exportation. 
 Date of sailing, date of exportation, under act of 1900: 
 The date of the sailing of a vessel is to be regarded as the date of exportation of 
 domestic articles shipped from the United States to Hawaiian territory prior 
 to June 14, 1900. The Attorney-General's opinion dated July 22, 1898 (em- 
 bodied in T. D. 19783), holds the Hawaiian Islands, so far as our commercial 
 relations are concerned, as foreign territory, and will be so regarded until the 
 act of June 14, 1900, takes effect. (T. D. 125; May 12, 1900.) 
 
102 
 
 Hawaiian exportation^ — Continued. 
 District of Hawaii created: 
 Under section 87, act of April 30, 1900, a new internal-revenue district, compris- 
 ing the Territory of Hawaii and known as the district of Hawaii, is constituted, 
 with headquarters at Honolulu. (T. D. 157; June 14, 1900.) 
 
 Exports to Hawaii taxed in bond: 
 From and after June 14, 1900, the following articles manufactured or produced 
 in the United States can not be exported to the Territory of Hawaii in bond 
 without the payment of tax, nor with the benefit of drawback as heretofore 
 viz, distilled spirits, stills, and worms; tobacco, snuff, cigars, and cigarettes; 
 fermented liquors; playing cards; oleomargarine; mixed flour; proprietary 
 articles; medicines, bottled wine, and all other products named in Schedule 
 B of the war-revenue act of June 13, 1898. (T. D. 120; May 5, 1900. ) 
 
 Hop-tea tonic — Special tax. 
 
 A fermented malt liquor containing 1.82 per cent of alcohol, without the addition 
 of any drug, can not be sold, even under a label as a medicine, without involv- 
 ing the seller in special-tax liability. (T. D. 829; October 4, 1904.) 
 
 Imprinted stamps. 
 
 Imprinted stamps bought by bankers or stationers: 
 
 Bankers or stationers may purchase imprinted stamps which they procured and 
 sold to their customers, and, as the bona fide owners thereof, present claims 
 in their own names for the redemption of such stamps, without regard to the 
 number purchased from each customer. (T. D. 361; June 18, 1901.) 
 
 List of contractors authorized to imprint stamps; also list of stamp agents, 
 together with instructions as to procurement of said stamps. (See Int. Eev. 
 circular Xo. 541, revised.) (T. D. 183; July 26, 1900.) 
 Keturu of canceled imprinted stamps: 
 
 The Commissioner of Internal Revenue was authorized by the joint resolution 
 of Congress approved February 2, 1902, to return to their owner bank checks, 
 drafts, etc., having imprinted stamps thereon, after the same had been can- 
 celed. (T. D. 476; February 26, 1902.) 
 Insurance tax— Life policies. (See also Decisions 19841, 19973, 20235.) 
 Assignment of life insnrance: 
 
 In assignment of a life insurance policy the stamp tax upon the assignment shall 
 be the same as that required upon the original policy, the cash value of the 
 policy at the time not affecting the amount of tax. (T. D. 19708; July 18, 
 1898.") 
 
 A policy of insurance is not valid unless it bears the proper canceled revenue 
 stamp. Stamps may be affixed by local agents when policies are delivered. 
 (T. D. 19741; July 20, 1898.) 
 Mutual life insurance nontaxable: 
 
 Mutual life insurance companies are not subject to tax if conducted for the benefit 
 of their members exclusively, without profit to such members, "Fraternal" 
 or "beneficiary" life insurance companies, if conducted for the benefit exclu- 
 sively of its members, without profit, are exempt from tax. (T. D. 19804; 
 August 1, 1898.) 
 
 First weekly premiums received in various collection districts by local agents of 
 life insurance companies may be included in the monthly returns rendered 
 to the collector of the district in which such companies are located. (T. D. 
 20059; September 14, 1898.) 
 
103 
 
 Insurance— Stamp tax. (See also Decisions 20551, 21110. ) 
 
 No tax accrues on a contract between life insurance companies for reinsurance 
 upon any life or lives. (See opinion of Attorney-General under date of Febru- 
 ary 3, 1899.) (T. D. 20677; February 6, 1899.) 
 
 A mere change of beneficiary not taxable: * 
 
 The former ruling to the effect that every change of a beneficiary* in a life insur- 
 ance policy subjects the policy to a taxation of 8 cents for each $100 of value 
 of the policy is reconsidered, and it is now held that a change of beneficiary 
 is not subject to taxation unless the change be made for a valuable considera- 
 tion. The latter would be subject to the same rate of tax as the original 
 policy. (T. D. 20726; February 20, 1899.) 
 
 Instruments of insurance taxable: 
 
 Fraternal and beneficiary life associations are exempt from tax on their policies 
 or certificates under Schedule A, war-revenue law. (T. D. 207; September 5, 
 1900. ) 
 
 Instruments of insurance are taxable, and under Schedule A, war-revenue act, 
 any person, association, company, or corporation transacting the' business of 
 insuring titles to real estate is required to affix to such policy of insurance, 
 bond, or obligation stamps in the amount of one-half of 1 cent for each dollar 
 or fractional part thereof of premium charged. (T. D. 14; January 11, 1900.) 
 
 The stamp under the war-revenue act must be affixed to the policy of insurance, 
 and not to the application. The amount of tax is to be ascertained by the 
 aggregate of the premiums for the entire year. (See Attorney-General's 
 opinion of September 5, 1900. ) (T. I>. 208; September 5, 1900. ) 
 
 When a life insurance company unites with another company and the reorgan- 
 ized company assumes the risks of the absorbed company, no tax accrues on 
 policies issued in lieu of the surrendered policies of the absorbed company 
 unless an additional amount of insurance is written. (T. D. 162; June 22, 
 1900. ) 
 
 Attorney-General's opinion on reinsurance: 
 The opinion of the Attorney-General, under date of February 3, 1899, relating 
 to the reinsurance of life insurance policies, is supplemented by his opinion, 
 dated March 2, 1899, so as to place reinsurance of fire and marine companies 
 on the same basis, for purposes of taxation, as that of life insurance, exempting 
 the same from stamp tax. (T. D. 20789; March 4, 1899.) 
 
 Conditions relating to surrendered policies: 
 Several conditions under which a policy of life insurance, issued in lieu of a sur- 
 rendered policy, is not subject to taxation. Instructions in regard to indors- 
 ing the new policy to show why stamps are not affixed; change of beneficiaries 
 without consideration not taxable; when made for a valuable consideration, 
 taxable as assignments. (T. D. 21227; June 2, 1899.) 
 When policies of reinsurance of fire insurance policies are written in the United 
 States and the policy which is reinsured is not subject to taxation by reason 
 of being issued in a foreign country, the reinsurance policy should be stamped. 
 (T. D. 21229; June 3, 1899.) 
 
 Insurance against dishonesty or negligence: 
 In the case of a fidelity insurance contract, running to a railroad or other cor- 
 poration, whereby the corporation is insured against loss on account of the 
 dishonesty or culpable negligence of employees, it is held that such contract 
 is in the nature of an insurance policy alone, not as a bond, and should be 
 stamped to the amount of one-half of 1 cent for each $1 of premium charged 
 by the insuring company. (T. D. 20781; March 1, 1899.) 
 
104 
 
 Insurance — Stamp tax — Continued. 
 Tax not due on policy renewal: 
 Stamp tax is not required where a policy is surrendered and the insurance com- 
 pany issues a new policy of paid-up insurance; where a policy is surrendered 
 , to be rewritten at the 'home office for, say, one-half the original amount, the 
 other conditions remaining unchanged; and where a policy is surrendered for 
 a new pdliey on one of the other plans of the company, there being no change 
 in the beneficiary. There is no new insurance. (T. D. 21048; April 21, 1899.) 
 
 Accident insurance policies: 
 Policies of accident insurance, whereon the premiums are payable in install- 
 ments, should be stamped, when issued, on a basis of the full premium charged 
 for the whole term. The policy can not be stamped on a basis of the first 
 premium paid and the application stamped as succeeding premiums are paid. 
 (T. D. 21646; October 9, 1899.) 
 
 Annuities not taxable: 
 Annuities, payable either during life or a term of years, are not taxable under 
 Schedule A, act of June 13, 1898. (T. D. 21618; September 20, 1899.) 
 
 Exemptions of insurance — Tax classified: 
 
 The insurance of life companies, exempt from stamp tax, is classified as follows, 
 viz: Insurance by fraternal societies or orders, by beneficiary societies or orders, 
 by farmers' purely local cooperative companies or associations, and by employ- 
 ees' relief associations operated on the lodge system or local cooperative plan, 
 and all not for profit and conducted solely by the members thereof for their 
 exclusive benefit. (T. D. 21779; November 16, 1899.) 
 
 Where the instruments are accessible and the parties are willing to purchase 
 stamps, the instrument should be stamped instead of having assessments made 
 for the taxes due. (T. D. 489; March 19, 1902.) 
 
 Sections 14 and 15, act of 1898, applicable in Federal courts only: 
 The war-revenue act, sections 14 and 15, providing that it shall not he lawful to 
 record or register any instrument, paper, or document, required by law to be 
 stamped, unless a stamp or stamps of the proper amount shall have been 
 affixed, is deemed applicable to Federal courts only by the supreme court of 
 Georgia in the case of Small et al. v. Slocumb et al. Not adjudicated by the 
 Supreme Court of the United States. (T. D. 474; February 14, 1902. ) 
 
 Internal-revenue stamps. 
 
 Stamps, issued under internal-revenue laws now repealed, can not be used in 
 lieu of stamps required by the war-revenue law of 1898. (T. D. 19608; June 
 29, 1898.) 
 
 Stamps issued under former law will not protect articles taxable under Sched- 
 ule B, act of June 13, 1898. Such articles must be restamped. (T. D. 19732; 
 July 19, 1898.) 
 
 Stamps imprinted on checks, drafts, or other instruments will not be redeemed. 
 (T. D. 19874; August 10, 1898.) 
 
 Allowance for certain adhesive stamps.— 
 An allowance may be made for certain adhesive stamps issued and sold to per- 
 sons exclusively for resale upon presentation of the stamps through the col- 
 lector from whom the stamps were purchased, accompanied by a claim for 
 allowance, with an affidavit as to the facts of purchase for resale and that the 
 purchaser had no use for said stamps. (This ruling is made in absence of a 
 law authorizing the redemption of stamps.) (T. D. 20199; October 17, 1898.) 
 
105 
 
 Internal-revenue stamps — Continued. 
 Erroneous use of stamps — 
 
 In cases where stamps have been used on instruments not requiring stamps, or i 
 where by error a stamp of a greater denonination than required by law has 
 been used upon an instrument requiring a stamp, the amount paid for said 
 stamps may be refunded upon application made therefor on Form 46, accom- 
 panied by the stamps, and, where practicable, by the instruments or copies 
 thereof to which the stamps have been erroneously attached. (T. D. 19973; 
 August 29, 1898.) ' 
 
 A stamp affixed to an instrument and canceled can not lawfully be removed 
 therefrom and affixed to another instrument requiring a stamp — amounts paid 
 for stamps used in error, or in excess, or on instruments defaced or found to 
 be defective and for which a substitute is prepared and stamped, may be 
 refunded. (T. D. 20125; October 3, 1898.) 
 
 Discount on stamp purchases: 
 The discount allowed on purchases of revenue stamps in quantities valued at not 
 less than $100 applies only to .adhesive stamps under Schedules A and B, war- 
 revenue law. (T. D. 19747; July 22, 1898.) 
 
 Posting stamp payments: 
 
 Special-tax payers must post conspicuously in their places of business the stamps 
 indicating payment of the special tax. (T. D. 20094; September 26, 1898.) 
 
 A collector has no discretion as to granting or declining to grant an application 
 for the transfer of a special-tax stamp. (T. D. 20338; November 16, 1898.) 
 
 A member of a firm who, upon its dissolution, carries on the business himself 
 without associating any other person with him therein, is entitled to continue 
 the business under the firm's special-tax stamp and to have such stamp trans- 
 ferred to any other place to which he removes the business. (T. D. 20346; 
 November 19, 1898. ) 
 
 As to the power of collectors to stamp unstamped instruments, section 3422, 
 Kevised Statutes, is made applicable to the act of June 13, 1898, by section 31 
 of the latter act. (T. D. 20441; December 15, 1898. ) 
 
 Internal-revenue law repeal. 
 
 The Commissioner calls the attention of collectors and of other officers of internal 
 revenue to the act of Congress, April 12, 1902, entitled "An act to repeal war- 
 revenue taxation, and for other purposes." (T. D. 500; April 16, 1902.) 
 
 Instructions to revenue agents: 
 Kevenue agents are instructed, and they will so instruct their employees, that 
 where an examination discloses irregufarities and violations of law involving 
 the necessity of a report to this office, the report must show the number of 
 each fermenting tub, the condition of the same, whether full, empty, being 
 filled, or emptied, and also the day and the hour the same were last filled 
 previous to the day on which the examination is n>ade as appears from the 
 entries in the records of the officer in charge of the same; and in case the 
 record is in arrears so as to prevent furnishing the information required, the 
 revenue agent will file charges against such officer for dereliction of duty. 
 (T. D. 439; December 3, 1901.) 
 
 Internal-revenue officers. 
 
 In all cases where charges of dereliction of duty, inefficiency, or other complaints 
 are made to this office against subordinate officers or employees in the Internal- 
 
106 
 
 Internal-revenue officers — Continued. 
 
 Revenue Service by collectors or agents, care should be taken to state specific- 
 ally in the report the status of the person against whom the charge or complaint 
 is made. (T. D. 56; March 1, 1900.) 
 
 Rules of Commissioner regulating the form and execution of official bonds of 
 gaugers, storekeepers, and storekeepers and gaugers. See Internal-Revenue 
 Circular, Nd. 576. (T. D. 171; July 2, 1900.) 
 
 Regulations governing correspondence with the Office of Internal Revenue. (Int. 
 Rev. circular, Xo. 550, addressed to collectors, as to o"fficial duties. (T. D. 29; 
 February 1, 1901.) 
 
 The United States circuit court has no original jurisdiction in the case of a suit 
 against a collector of internal revenue to recover taxes alleged to have been 
 illegally collected, when the parties are citizens of the same State and the 
 amount claimed is less than $2,000. (T. D. 117; May 1, 1900.) 
 
 J. 
 
 Jamaica ginger — Special tax. 
 
 The special tax of a rectifier and liquor dealer is not required to be paid for the 
 manufacture for sale of a compound of distilled spirits and ginger called "es- 
 sence of Jamaica ginger," which is prepared and sold for use as a medicine only 
 under the proper label, notwithstanding the fact that in occasional instances 
 it is found that persons use it as a beverage. (T. D. 428; November 1, 1901.) 
 
 Judgment debtors. 
 Instructions to United States marshals: 
 The attention of United States marshals is directed to the "regulations" of the 
 Bureau of Internal Revenue, the last paragraph of which provides that on the 
 1st day of October 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 knowl- 
 edge upon the subject, and will advise such proceedings in the premises as 
 they shall deem proper. (T. D. 703; September 28, 1903. ) 
 
 K. 
 
 Ko-nut. 
 
 Coeoanut butter under act of 1886: 
 Cdcoanut butter manufactured from "pure coeoanut butter fat extracted from 
 the shredded white meat of coeoanut," is held to be made from a vegetable 
 oil. When thus made, if it remains free from admixture with other substances, 
 it is not oleomargarine in contemplation of the law. But when mixed with 
 coloring matter or other substances it becomes oleomargarine, under the last 
 paragraph of section 2 of act of August 2, 1886, and a tax of 2 cents a pound 
 is required by section 8 of that act to be paid thereon. (T. D. 277; January 
 * 12, 1901.) 
 
 Ko-nut not taxable as oleomargarine: 
 Ko-nut, a refined coeoanut oil, being more an imitation of lard than butter, and 
 being put up in tin pails after the manner of lard and lard substitutes, not in 
 prints or rolls like butter, and the manufacturers disclaiming any intention of 
 holding it out as an imitation of butter, has been held not subject to tax as 
 oleomargarine. (T. D. 344; May 11, 1901.) 
 Ko-nut can not be regarded as a fat or vegetable oil in the semblance of butter, 
 and should not be considered as oleomargarine, according" to precedents. 
 (T. D. 277; February 12, 1901.) * 
 
107 
 L. 
 
 Lard substitute. 
 
 Substitute for lard is not taxable as oleomargarine: 
 A lard made for and used as a substitute for butter, not having the essential ele- 
 ments of butter and not sold for butter, can not be regarded as oleomargarine 
 under section 2, act of August 2, 1886, and therefore is not subject to the tax 
 imposed upon colored or uncolored oleomargarine. Quoting from Judge 
 Grosscups- "It in no way way steals any of its qualities or appearances from 
 the product of the'cow." (T. D. 615; January 12, 1903.) 
 Leaf tobacco. 
 
 Entering sales in Book 59: 
 Collectors of internal revenue are advised that sales of leaf tobacco should not 
 be entered in Book 59 until date of actual delivery or shipment to purchaser. 
 (T. D. 826; September 8, 1904. ) 
 
 Modification of Treasury decision of November 17, 1898: 
 Modifying the ruling, 20339, made November 17, 1898, of the Commissioner, that 
 leaf-tobacco dealers are privileged to manipulate leaf tobacco in a manner to 
 produce the quality of tobacco known as Black Fat, etc., without qualifying as 
 manufacturers of tobacco. They are privileged to export this product the 
 same as other leaf tobacco without the execution of an export bond. They 
 are permitted to sell the leaf tobacco to other leaf-tobacco dealers, manufac- 
 turers of tobacco, snuff, or cigars, and to persons known to be purchasers of 
 leaf tobacco for export. They are not permitted to sell this class of tobacco 
 to vessels engaged in the coastwise trade, nor to any person other than those 
 mentioned above, without payment of the tax on the quantity thus sold. 
 (T. D. 682; July 21, 1903.) 
 
 The sale of leaf tobacco by farmers: 
 Paragraph second of the act approved April 12, 1902, regards every person as a 
 manufacturer of tobacco who sells his leaf tobacco in its natural conditioa to 
 consumers, or to persons other than, registered dealers in leaf tobacco, manu- 
 facturers of tobacco or cigars,- or persons who buy leaf tobacco in packages for 
 export; and all leaf tobacco so sold by such person is regarded as a manufac- 
 tured tobacco subject to tax; but there is this exception, that farmers and 
 growers are not to be regarded as manufacturers for selling leaf tobacco of 
 their own growth and raising. (T. D. 635; March 12, 1903.) 
 
 Sale of manufactured leaf by dealer in tobacco: 
 A manufacturer of tobacco who puts up leaf tobacco for sale or consumption 
 must pack his product in statutory packages, as defined by the regulations. 
 A manufacturer may consign his product to himself and dispose of it as a 
 dealer in tobacco in premises separate from his factory, and may remove his 
 business to new location without changing its status, but if manufactured 
 tobacco products are sold by an itinerant tobacco dealer traveling from place 
 to place, such business would be regarded as that of a peddler of tobacco and 
 he would be required to qualify as such. A "hand" of leaf tobacco having 
 no covering, but with stamp and caution notice attached, is not held to be a 
 proper package. (T. D. 741; January 9, 1904.) 
 
 Sellers to the retail trade are manufacturers: 
 Under section 69 of the tariff act approved August 28, 1894, persons who buy 
 leaf tobacco from farmers and sell it to the retail trade in the hand or bunch, 
 in its natural condition, are regarded as manufacturers of tobacco and must 
 qualify as such. (T. D. 739; January 7, 1904.) 
 
108 
 
 Leaf-tobacco sales. 
 
 Farmers and growers of tobacco are privileged to sell leaf tobacco of their own 
 growth and raising (and that received from tenants as rent) and in its natural 
 condition without restriction, but the farmer must sell his tobacco in the con- 
 dition in which it was cured on the farm, and can not stem, twist, plait, roll, 
 sweeten, or otherwise manipulate it for sale to consumers. No person can 
 lawfully be employed by a farmer as his agent to sell and deliver his tobacco 
 to consumers. (T. D. 497; April 7, 1902.) 
 Leases. (See also Decision 19932. ) 
 
 A receipt given for money paid under the terms of a lease duly stamped does 
 not require a stamp. (T. D. 19684; July 12, 1898. ) 
 
 A lease when transferred to a new lessee is subject to a stamp tax for the unex- 
 pired term of the lease. (T. D. 20069; September 19, 1898. ) 
 
 Leases of rights of way are subject to stamp tax under the act of June 13, 1898. 
 (T. D. 20318; November 11, 1898.) 
 
 Under the act of June 13, 1898, a transfer of a portion of a lease required the 
 same stamp as the transfer of a whole lease. (T. D. 399; August 7, 1901.) 
 
 Leases embodying powers of attorney must pay the tax required to be paid on 
 both instruments. (T. D. 282; February 15, 1901.) 
 
 When an interest in a lease is assigned the assignment is subject to taxation. 
 The rate is a proportional one, and based on the rate that would accrue were 
 the lease, instead of an interest in the same, assigned. (T. D. 20915; March 
 ' 24, 1899. ) 
 Legacies. 
 
 Distributive shares under act of 1902: 
 
 Under section 3, act of Congress approved June 27, 1902, collectors are instructed 
 that where the decedent died prior to July 1, 1902, and the distributive shares 
 or legacies absolutely bequeathed were not distributed to or among the bene- 
 ficiaries on or before the date named, on account of the time allowed by State 
 laws to settle the estate and distribute or disburse the personal property, or 
 on account of litigation, such legacies and distributive shares are subject to 
 tax. (T. D. 552; July 15, 1902.) 
 Refunding legacy taxes: 
 
 Rules and regulations established by the Commissioner for refunding taxes 
 paid by corporations, associations, societies, or individuals, as trustees, upon 
 bequests or legacies, under section 1, act of June 27, 1902, require that, in all 
 cases, the claim for refunding should be made under oath before an internal- 
 revenue officer, or an officer with a seal, and must be accompanied by satis- 
 factory evidence as to the character of the corporation, association, or society, 
 and evidence as to whether the tax was paid from the corpus of the estate or 
 from the individual legacies. (T. D. 543; July 3, 1902.) 
 Refunding tax on legacies for religions, charitable, or educational uses: 
 
 Refund of tax on legacies and bequests for uses of a religious, charitable, or edu- 
 cational character; refund of tax on export bills of lading; refund of tax on 
 contingent beneficial interests, which had not become vested July 1, 1902. 
 No tax to be assessed on contingent beneficial interests not vested July 1, 
 1902. Taxes upon securities delivered or transferred to secure the future 
 payment of money remitted. (T. D. 541; July 1, 1902.) 
 Legacy tax — Beneficial interests. 
 
 The exemption from tax of any "contingent beneficial interest which shall not 
 become absolutely vested in possession or enjoyment prior to * * * July 
 1, 1902," under the act of June 27, 1902, in the opinion of the Attorney- 
 General, relates only to "interests which might never vest" because depend- 
 
109 
 
 Legacy tax— Beneficial interests— Continued. 
 
 ent upon contingencies which might never happen; and the words "vested in 
 possession or enjoyment," in the third section of the act of June 27, 1902 
 simply "mean that the contingency had been removed prior to July 1, 1902." 
 (T. D. 595; November 14, 1902.) 
 
 A legacy, or beneficiary interest in an estate created by will, is subject to tax 
 whether the beneficiary divest himself or herself of the right to the estate or 
 not, and the returns of tax should be reported on Form 419. (T. D. 599; 
 December 1, 1902. ) 
 
 The Supreme Court of the United States holds, in the case of Moore, collector, 
 v. Ruckgaber, executor, etc., October term, 1901, that the sections of the act 
 of June 13, 1898, imposing legacy tax, do not apply to deceased persons domi- 
 ciled abroad who left property by will executed in this country. (T. D. 490; 
 March 21, 1902. ) 
 
 Legacy tax — Attorney-General's opinion. 
 
 The Attorney-General, in an opinion dated August 1, 1902, as to the proper 
 construction of section 3, act of June 27, 1902, referring to refunding taxes 
 paid upon legacies and bequests, etc.-, holds that the first paragraph of said 
 section authorizes the refunding of all taxes paid on contingent beneficial 
 interests that had not become vested prior to July 1, 1902. The second para- 
 graph directed that no tax be " assessed " or "imposed " after the passage of 
 said refunding act (approved June 27, 1902) upon any contingent beneficial 
 interest not " absolutely vested in possession or enjoyment prior to said July 
 1, 1902." The words "contingent" and "vested" should be given their 
 technical legal significance in each paragraph. (T. D..570; August 27, 1902.) 
 
 The taxable value of a reversionary legatee's interest is the present worth of 
 such interest, as ascertained by the tables at the time the value of the life 
 interest in the same fund was determined. (T. D. 482; March 11, 1902.) 
 Nonresident alien legacy: 
 
 The Commissioner promulgates, for the guidance and information of all con- 
 cerned, several decisions of the Supreme Court of the United States relative to 
 tax imposed upon the passing of any legacy or distributive share arising out 
 of the personal property of a nonresident alien who has never resided or had 
 domicile in the United States. (T. D. 490; March 21, 1902.) 
 
 Eeversionary interests: 
 
 The Commissioner holds that, pending the decision of the courts as to the taxa- 
 bility of reversionary interests under the war-revenve act and the amendatory 
 act of March 2, 1901 (see circular 646), all such interests vested prior to July 
 1, 1902, are held to be taxable, although not vested in actual possession or 
 enjoyment prior to that date. (T. D. 706; October 2, 1903.) 
 
 Property passing to a legatee by virtue of a power of appointment granted under 
 the will of one dying prior to the act of June 13, 1898, and exercised by the 
 donee subsequent thereto, is held not subject to legacy tax. (T. D. 677; July 
 8, 1903.) 
 Remainder interests: 
 
 Where, upon the death of the life tenant, the remainder interest is to pass to 
 his or her child surviving, or, if deceased, to the issue of such deceased child, 
 or, if leaving no issue, to the next of kin of the testator. Held, that in such 
 case the remainder immediately vests in the child of the life tenant if living 
 at the time of the testator's death. (T. D. 660; May 11, 1903. ) 
 Property passing by appointment, under will: 
 
 It was formerly held by this office that where a legatee became entitled to a 
 legacy through the exercise of the power of appointment subsequent to June 
 
110 
 
 Legacy tax — Attorney-General's opinion — Continued. 
 Property passing by appointment, under will — Continued. 
 
 13, 1898, the legacy tax was required to be paid (T. D. 274). The courts have 
 rendered three decisions on this question since that ruling was made, which 
 have been adverse to the Government. These decisions will be followed 
 hereafter. (T. D. 677; July 8, 1903.) 
 
 Legacy tax — Remainder interests. 
 
 Estates left in trust, the income payable to a beneficiary during life and the 
 remainder to the children of the life tenant, are vested in the children who 
 are living at the decease of the testator, subject, however, to open and let in 
 all those who may be born thereafter. (T. D. 638; March 16, 1903. ) 
 
 Eules as to applications for refunding: 
 As to rules governing applications for refunding taxes paid on contingent bene- 
 ficial interests under section 3, act of June 27, 1902, it is held that such claims 
 should set forth in detail the clause or clauses of the will under which the 
 alleged contingent interests arose and the names of the legatees to whom such 
 interests were ascribed as passing. In cases where estates have not been 
 closed, the claim should be made by the executors or administrators. (T. D. 
 718; November 18, 1903.) 
 
 Tax payable one year from decedent's death: 
 
 The law requires payment of tax within one year from death of decedent. The 
 whole tax of life tenant is required to be paid, whether accumulated income 
 equals the tax due or not. Tax on remainderman's interest to be deducted 
 from the corpus of the estate. (T. D. 467; February 1, 1902.) 
 
 The proceeds from a life-insurance policy, payable to a party insured or his legal 
 representative, is a part of decedent's estate. If payable to some one else, the 
 proceeds are not to be treated as a part of his estate, but are payable direct to 
 the beneficiaries named in the policy, and are not subject to legacy tax. 
 (T. D. 479; March 6, 1902.) 
 
 Where a life interest in an estate actually vests in possession of a second life 
 tenant, before assessment of tax is made, by reason of the death of the former 
 life tenant, tax in such cases will be computed on the life expectancy of the 
 tenant in actual possession. (T. D. 598; December 1, 1902.) 
 
 Five per cent penalty and interest: 
 As to the penalty of 5 per cent and 1 per cent interest, monthly, on estates, the 
 amendment by section 11, act of March 2, 1901, of section 30 of the legacy-tax 
 act of June 13, 1898, whereby it is provided "that the tax or duty aforesaid 
 shall be due and payable in one year after the death of the testator," applies 
 only to estates in which the testator or intestate died on or after July 1, 1901, 
 the date set by the statute for this amendatory provision to become operative, 
 and that the law as thus amended has no effect in any case in which the tes- 
 tator or intestate died prior to July 1, 1901, these cases being governed by the 
 original law. (T. D. 842; November 16, 1904. ) 
 
 Litigation pending as to legacies provided by will: 
 
 Where a legacy is provided by will and a suit, involving the terms of the instru- 
 ment and the estate, is pending in court, the revenue collector is instructed 
 that the executor should file with him a return on Form 419, revised, filled out 
 according to the provisions of the will; an appraisement of the personal prop- 
 erty of the estate filed with the papers; also a statement of the liabilities of 
 the estate and a copy of the will. The tax assessment should then be stayed 
 until the suit is decided and the amount of tax determined. (T. D. 523; May 
 17, 1902.) 
 
Ill 
 
 Legacy tax— Remainder interests— Continued. 
 The law as affected by domicile: 
 
 Where the decedent was a nonresident at the time of death, in order to deter- 
 mine whether the case comes within the principle laid down by the Supreme 
 Court in the case of Eidman v. Martinez, and that of Moore v. Ruckgaber, if 
 a domicile abroad is alleged, there should be evidence furnished, a sworn 
 statement from either the executor or administrator, or from the person legally 
 authorized to act for the estate, as to the nature of the domicile, and this office 
 will determine from the facts of the case whether such residence abroad was, 
 in a strictly legal sense, his domicile, his fixed, permanent home and principal 
 establishment. It must be established that there was no intention of return- 
 ing to the United States and resuming his domicile here. (T. D. 506; April 
 
 21, 1902.) 
 
 Ascertaining value of interests: 
 Moneys collected from rents which accrued after death of testator not subject to 
 legacy tax, but rents accrued before death, but not paid, are considered per- 
 sonal property of testator's estate. (T. D. 342; May 8, 1901.) 
 The tables adopted by the Bureau of Internal Revenue for purposes of ascer- 
 taining the value of the interests of legatees that receive the income of per- 
 sonal property for life are not a part of the legacy law, and can not be taken 
 to estimate the value of a life interest if the beneficiary has already deceased. 
 (T. D. 598; December 1, 1902.) 
 The legacy tax is a lien upon the entire property of the deceased, whether real 
 or personal. (T. D. 389; July 29, 1901.) 
 
 Collectors instructed to examine probated wills: 
 An internal-revenue tax being imposed on legacies and distributive shares of 
 estates where the decedent died on or after June 13, 1898, leaving a personal 
 estate exceeding $10,000, collectors and revenue agents are required to exam- 
 ine all wills filed for probate in the offices of registers of wills or other similar 
 offices, and forms for making return of tax should be furnished executors and 
 administrators, and they be notified of their liability. (T. D. 20415; Decem- 
 ber 10, 1898. ) 
 
 Seduction by State inheritance tax: 
 Where a legacy is reduced to a sum less than $10,000 on account of the deduc- 
 tion of the State inheritance tax, it is held that the State inheritance tax is a 
 proper deduction from the legacy as an expense. (T. D. 266; January 17, 1901. ) 
 
 Refunding under act of 1901: 
 Legacy taxes paid since the passage of the act of March 2, 1901, amending the 
 war-revenue law, may be refunded. The act is not retroactive in its effect, 
 and no taxes collected under the law as it existed prior to March 2, 1901, can 
 be refunded unless the courts decide that they were illegally collected. (T. D. 
 336; April 30, 1901.) 
 
 Notice to the collector: 
 Section 30 of the act of March 2, 1901, amendatory of the war-revenue law, pro- 
 vides that every executor, administrator, or trustee, having in charge or trust 
 a legacy or distributive share, shall give notice thereof to the collector within 
 thirty days after he shall have taken charge of such trust. No special form of 
 notice is prescribed, except that it must be in writing. (T. D. 330; April 
 
 22, 1901.) 
 
 Legacy tax payable after June 13, 1898: 
 
 Where a legatee becomes entitled to a legacy through the exercise of the power 
 of appointment, subsequent to June 13, 1898, legacy tax is required to be paid. 
 (T. D. 274; February 8, 1901.) 
 
112 
 
 Legacy tax — Remainder interests — Continued. 
 Fluctuation of stocks after appraisement: 
 
 Fluctuation of stocks after appraisement should not be considered in ascertaining 
 the value of an estate for the purpose of assessing legacy tax. When a sub- 
 stantial sum is realized on a note or any personal property appraised as of no 
 value, it is evident such appraisement was erroneous, and the amount actually 
 realized should govern in assessing the legacy tax. (T. D. 408; August 26, 
 1901.) 
 
 In case an estate is to be divided by the heirs without administration, legacy 
 return and payment of tax are required. (T. D. 409; September 3, 1901. ) 
 
 Where a legacy exceeds §10,000, but by deduction of debts and legal expenses it 
 appears that such legacy would be reduced to $10,000, or under, the executor 
 must make a return and file copy of the will and schedule of assets and 
 liabilities. (T. D. 431 ; November 4, 1901. ) 
 Legacy under nuncupative will: 
 
 Legacies under a nuncupative will are subject to legacy tax. Such a legacy can 
 not be considered as a debt! (T. D. 41 1 ; September 24, 1901. ) 
 
 The whole amount of the beneficial interest of a legatee is to be considered in 
 determining the rate of legacy tax. (T. D. 392; August 1, 1901.) 
 
 Section 29, act of June 13, 1898, as amended by act of March 2, 1901, imposing a 
 tax on legacies, applies only where the testator or intestate died after the act 
 was passed. Taxes collected prior to the amendatory act can not be refunded 
 pending decision of the courts. (T. D. 336; April 30, 1901. ) 
 literary, charitable, educational uses exempt: 
 
 Referring to the legacy of $10,000 left by Redford F. Warner to the Philadelphia 
 School of Design for Women, the Commissioner holds that a legacy for literary, 
 charitable, or educational uses on which tax has not been paid prior to March 
 1, 1901, is exempt from tax. (T. D. 309; March 25, 1901.) 
 Real estate mortgage indebtedness: 
 
 A real estate mortgage indebtedness is not a proper charge against the personal 
 estate, as regards the liability of the estate to legacy tax. (T. D. 449; December 
 
 16, 1901.) 
 
 Rules as to legacy returns: 
 Where collector is satisfied that a bequest is for $10,000 even, and the residu- 
 ary estate is bequeathed absolutely to the widow, no return is necessary. 
 Executors should make return and pay the tax before turning legacy over to 
 trustee. Corporate stock is held to be personal property, regardless of the 
 nature of corporation. What is required of a legacy return. Fair market 
 value at the date of decedent's death the measure of value of personal property. 
 (T. D. 435; November 25, 1901. ) 
 
 Taxes deductible from legacy: 
 A legacy to a partnership is considered a legacy to each partner that comprises 
 the firm. The firm is not to be treated as an entity. (T. D. 267; January 
 
 17, 1901.) 
 
 Legacy taxes under the act' of June 13, 1898, as amended, due and payable in 
 one year after the death of the testator. Taxes are to be deducted from the 
 legacy. The notice required to be given to the collector by the executor, etc, 
 within thirty days after he qualifies, must be in writing. No special form is 
 prescribed. (T. D. 330; April 22, 1901.) 
 
 Legacy return, Form 419, should be made and the tax paid to the collector or 
 deputy collector of the district of which the deceased person was a resident. 
 The nonresident mentioned in the statute is held to mean a person residing 
 outside the jurisdiction of the United States. (T. D. 442; December 7, 1901.) 
 
113 
 
 Legacy tax — Remainder interests — Continued. 
 Accumulations not taxable: 
 
 Accumulations, income, and additions accrued and received subsequent to the 
 death of testator are not taxable; also depreciations and losses arising subse- 
 quent to death of testator are not to be considered in ascertaining the value of 
 the estate. Former ruling inconsistent herewith revoked. (T. D. 388; July 
 27, 1901. ) 
 
 Accumulations from dividends and interest in the hands of an executor or 
 administrator are taxable, as the tax is on the "clear value" of the legacy, or 
 beneficial interests. (T. D. 349; May 25, 1901. ) 
 Date of testator's death: 
 
 The date of the testator's death is held to be the date of passing an estate, and 
 
 the respective interests of beneficiaries vest at that time. The settlement of 
 
 the estate is assumed to be of that date and the taxable value of legacies is 
 
 determined as of the date of testator's death. (T. D. 422; October 22, 1901.) 
 
 legal effect as to adopted child: 
 
 Adopted child considered as a stranger in blood to the foster parent for the pur- 
 pose of taxation under the war-revenue law. When the will provides a life 
 interest in certain property to widow and remainder to her issue, the interest 
 of a daughter is a vested interest. It is the daughter's expectancy of outliving 
 her mother, as demonstrated by the tables, which fixes the status of her 
 interest. (T. D. 437; November 25, 1901.) 
 
 A legacy to an adopted daughter is subject to tax, as a stranger in blood to 
 testator. Former rulings inconsistent herewith are revoked. (T. D. 367; 
 June 22, 1901.) 
 
 It is not the intention of the office to require returns and the payment of legacy 
 tax on reversionary interests where estates have been settled prior to July 1, 
 1901, in accordance with rulings then in force. (T. D. 420; October 17, 1901.) 
 Interest of remainder-man: 
 
 In the matter of legacy taxes, a reversionary interest is not vested in a remainder- 
 man when the remainder-man is older than the life tenant, until, if ever, the 
 property vests in possession of the remainder-man. (T. D. 436; November 25, 
 1901.) 
 
 Stock in real-estate corporation is held to be taxable as personal estate when 
 passing as an inheritance or legacy, in contemplation of the war-revenue law. 
 (T. D. 386; July 25, 1901.) 
 Legacies and distributive shares. 
 Documents subject to stamp tax: 
 
 Where the distribution of legacies or distributive shares requires documents tax- 
 able according to other provisions of the act of June 13, 1898, the documents 
 . should be stamped regardless of the payment of a legacy tax. (T. D. 21781; 
 November 17, 1899.) 
 
 Leases or household estates, and the income therefrom, are considered as per- 
 sonal property as far as the internal-revenue law is concerned. (T. D. 21877; 
 December 23, 1899.) 
 Legacies exceeding 810,000: 
 
 Legacy tax accrues where the whole amount of personal property left for distri- 
 bution, after payment of legal debts and expenses, exceeds the sum of $10,000, 
 without regard to the amount or value of each legacy or share. The tax is to 
 be paid out of the separate legacies unless the testator's will provides other- 
 wise. (T. D. 21649; October 10, 1899.) 
 
 Taxes on life interests, or interests forgiven periods, should be paid at onetime, 
 and not annually. (T. D. 21778; 1899. ) 
 
 31331—05 8 
 
114 
 
 Legacies and distributive shares — Continued. 
 Opinion of Attorney General: 
 Construing section 29, act of June 13, 1898, relative to the taxation of legacies 
 and distributive shares arising from the will of a testator, under the laws of 
 any State or Territory, the Attorney-General, in an opinion rendered January 
 5, 1899, holds that it is the purpose of the law not to levy a tax upon the 
 gross amount of estates in the hands of executors, administrators, etc., but to 
 tax such legacies and distributive shares, arising from personal property, as 
 exceed $10,000 in actual value. The tax is upon the legacy or distributive 
 share, not upon the estate. (T. D. 20545; January 12, 1899.) 
 The whole amount of personal property left for distribution after payment of 
 legal debts and expenses determines the rate of tax imposed on legacies and dis- 
 tributive shares, without regard to the amount or value of each legacy or share. 
 (T. D. 20587; January 18, 1899.) 
 Life interest taxable in entirety: 
 Where a life interest in an estate is terminated by death, the enlire amount of 
 the legacy to be distributed to the reversionary legatee is subject to tax under 
 the war-revenue law. (T. D. 21469; August 4, 1899.) 
 Returns as to life interests of husband and wife : 
 Where the wife or the husband is left a life interest in the whole or a portion of 
 
 the personal estate, a return should be made. (T. D. 21230; June 3, 1899.) 
 Where persons derive their interest in personal property through the exercise of 
 power of appointment by a person dying after the passage of the act of June 
 13, 1898, this power having been granted by the will of a person dying pos- 
 sessed of this property prior to that act, legacy tax is required to be paid on 
 such interests. (T. D. 21256; June 10, 1899.) 
 Legacy decents: 
 A legacy left to a half-brother is subject to legacy tax the same as though it were 
 
 left to a whole brother. (T. D. 21339; July 1, 1899.) 
 In the case of a decedent who executed a will in New York, where she was then 
 residing, but whose domicile at the time of her death was not in the United 
 States, the tax accrues on legacies under the act of June 13, 1898. The law 
 makes no discrimination between the estates of resident and nonresident 
 decedents. (T. D. 21052; April 24, 1899.) 
 Where the State law permits estates to be settled without making appraisal, an 
 appraisal made by the executor under oath and filed with the collector will be 
 accepted, unless there is some reason for questioning it. (T. D. 21340; July 
 1, 1899.) 
 Where mortgages and notes are assets of an estate, moneys derived therefrom, 
 although so derived through foreclosure and sale of the real estate by the 
 executor or administrator, should be included in the personal property left 
 for distribution. (T. D. 21049; April 22, 1899.) 
 Recovering legacy taxes : 
 When an executor, administrator, or trustee has distributed an estate, on which 
 tax has accrued, under section 29 of the act of June 13, 1898, without first 
 paying the legacy tax required by law, the assessment having been made and 
 the demand notice, Form 455, having been served on said executor, the 
 amount of said tax, interest, and costs, becomes a lien upon the property of 
 said executor. (Sec. 3186, Rev. Stat.) The proper course to pursue to recover 
 legacy taxes in such cases would be either by distraint or by a proceeding in 
 tbe circuit or district court of the United States. (T. D. 21078; May 2, 1899.) 
 Tax on legacies a lien : 
 Tax on legacies is a lien on the personal property of the decedent and not upon 
 the real estate. (T. D. 21147; May 10, 1899.) 
 
115 
 
 Legacies and distributive shares — Continued. 
 No tax on legacy created prior to 1898: 
 Where a person died on or after the passage of the act of June 13, 1898, leaving a 
 personal estate, etc., legacy tax accrues at once on distributive shares and on 
 legacies where no life estate intervenes. There is no tax on legacies under the 
 will of a person who died prior to June 13, 1898, unless the right of the legatees 
 to the possession and enjoyment of their legacies is postponed to a date subse- 
 quent to June 12, 1898. Legacies paid out of the proceeds of real estate 
 directed to be sold for that purpose are not subject to legacy tax. (T. D. 
 20988; April 11, 1899.) 
 
 Interest of widow in an estate: 
 
 Section 29 of the act of June 13, 1898, took effect immediately, being expressly 
 within the exception in section 51 of the same act, which "declares" that this 
 act shall take " effect on the day next succeeding the date of its passage, except 
 as otherwise specially provided for. " The personal property going to the widgw 
 is to be included in making up the total value of the estate for the purpose of 
 determining whether the " whole amount" of personal property, out of which 
 legacies and distributive shares are to be paid, exceeds the "sum of ten thou- 
 sand dollars in actual value." (T. D. 20950; April 3, 1899.) 
 Testamentary legacies: 
 
 Accumulations from dividends and interest in the hands of the executor or 
 administrator must be included in making up the value of personal property. 
 They are not taxable until ready for distribution, and then they are taxable 
 the same as the rest of the estate left by decedent. The clear value of the 
 legacies is subject to tax. In the partial distribution of estates the return 
 should state the facts, and a record should be kept in the" collector's office, 
 showing the condition of the estates. (T. D. 21024; April 15, 1899) . 
 
 An advancement made by a parent to his or her child should be taxed as a legacy 
 upon the death of the parent if notes were given for such advancement and 
 constitute a part of the assets of the estate liable for debts. (T. D. 20675; 
 February 3, 1899.) 
 
 A bequest made to the city of Springfield, Ohio, in Government bonds, the 
 income to be expended in the maintenance and improvement of a public park, 
 taxable under the act of June 13, 1898. No exception is made in case of 
 bequests for benevolent purposes, or bequests to a city. The tax is not upon 
 the property, but upon the right to dispose of it. A bequest of Government 
 bonds liable, as the tax is not upon the bonds. (T. D. 20791; March 6, 1899.) 
 
 It is expected that the legacy tax will be collected by internal-revenue officers 
 without assistance from informers, and no inducements are offered in the way 
 of reward to persons giving information in regard to estates liable to legacy 
 tax. (T. D. 20882; March 20, 1899.) 
 
 If the legal debts and expenses allowed by the court reduce the whole amount 
 of personal property of an estate so that the whole amount of personal prop- 
 erty left for distribution does not exceed $10,000, no tax accrues. (T. D. 
 20589; January 19, 1899.) 
 
 The sum of $1,000 left by the will of testator to trustees to purchase a burial lot 
 and erect a gravestone is not subject to legacy tax. (T. D. 21043; April 19, 
 1899. ) 
 
 No legacy tax accrues in a case where the testator died prior to June 13, 1898, even 
 though part of the estate is still in the process of settlement, if there is nothing 
 in the terms of the will which postpones the right of the legatees to the imme- 
 diate possession and enjoyment of their legacies upon the death of the testator. 
 (T. D. 20946; March 31, 1899.) 
 
116 
 
 Legacies and distributive shares — Continued. 
 Income from United States bonds nontaxable : 
 
 Income from personal estate invested in United States bonds by executor under 
 provisions of the will remaining in the hands of the executor is not subject to 
 tax, but legacies, etc., represented by said bonds are subject to tax before dis- 
 tribution. Schedule or list of the personal property should be prepared and 
 returned by the executor or administrator at an early date after decedent's 
 death. When legacies are subject to tax. When legacy tax accrues. When 
 payable. Widow's share exempt. (T. D. 20591; January 19, 1899.) 
 Legacies of real estate : 
 
 A legacy tax is collectible on the fractional parts of $100. (T. D. 20237; Octo- 
 ber 21, 1898.) 
 
 Distributive shares, arising from personal property of an estate, are not relieved 
 from legacy tax by the fact that they are represented by United States bonds. 
 % (T. D. 20188; October 12, 1898.) 
 
 Legacies paid out of the proceeds of real estate, directed to be sold for that pur- 
 pose, are not subject to the tax upon legacies arising from personal property. 
 In case the debts and claims against the estate exceed the appraised or clear 
 value of the personal property, there can be no legacy tax; a return should be 
 made by the executor, etc. (see Circular 517, revised). On executor's refusal 
 or failure to make return, see sections 30 and 31 of the act of June 13, 1898, 
 and section 3172, Revised Statutes. Where estates consist of both real and 
 personal property, the whole amount of the personal property should be 
 appraised separately from the real property. (T. D. 20596; January 20, 1899.) 
 
 Legacy to a daughter-in-law is subject to tax under paragraph 5, section 29, act 
 of June 13, 1898. (T. D. 20608; January 24, 1899.) 
 Grounds of legacy tax : 
 
 1. A legacy tax, collectible on life interests, must be computed on a gross sum, 
 
 not annually. 
 
 2. Where the real estate and personal property consist of a building with 
 
 machinery, all leased as a whole for twenty years at a fixed yearly rental, 
 tax must be paid on the appraised value of the twenty years leasehold. 
 
 3. The law only requires the executor of an estate to pay legacy tax before the 
 
 distribution of legacies to legatees, on the clear value thereof. (T. D. 20368; 
 November 21, 1898.) 
 Attorney-General construes law as to legacies: 
 
 Construing section 29, act of June 13, 1898, the Attorney-General holds that it is 
 the purpose of the law not to levy a tax upon the gross amount of estates in 
 the hands of executors, administrators, etc., but to tax such legacies and dis- 
 tributive shares arising from personal property as exceed $10,000 in actual 
 value. The tax is upon the legacy or distributive share, not upon the estate. 
 (T. D. 20545; January 12, 1899.) 
 
 Where testator dies, leaving an estate of $120,000, to be equally divided between 
 his six children — i. e., $20,000 to each — each of said legacies is to be taxed at 
 the rate of $1.50 per $100. (T. D. 20438; December 15, 1898.) 
 Eetarns mnst be made on "whole amount:" 
 
 It is imperative that the return be made on the "whole amount" of personal 
 property passing from a person dying on or after June 13, 1898; the fact that 
 the legacy left to the widow is exempt from tax does not relieve the adminis- 
 trator or executor from making such return. (T. D. 20446; December 20, 
 1898.) 
 
 The legacy tax should be deducted from the individual legacies, but is a lien 
 upon the entire property of the decedent. (T. D. 20461; December 23, 1898.) 
 
117 
 
 Legacies and distributive shares— Continued. 
 Life beneficiary interests taxable: 
 Legacies in the nature of a life beneficiary interest and remainder-man's interest 
 are both taxable, their values beingdetermined by approved tables under ' ' United 
 States internal-revenue adjustment, 1898." (T. D. 20442; December 16, 1898. ) 
 Property held by trustees under deed: 
 
 Beneficial interests held in trust by trustees are subject to tax, even though their 
 taxable value can not be determined in all cases until a certain contingency 
 arises, such as the termination of a life interest. (T. D. 20445; December 20, 
 1898.) 
 
 Where property is held by trustees under a deed of trust executed prior to June 
 13, 1898, by a person dying on or after said date, and by the terms of the trust 
 the beneficiaries could not become entitled to the possession or enjoyment of 
 their distributive shares until after the grantor's death, taxes are required to 
 be paid on these distributive shares under section 29, act of June 13, 1898. 
 (T. D. 20444; December 16, 1898.) 
 Tax determined by "whole amount" of estate: 
 
 The legacy tax on an estate of personal property is determined by the " whole 
 amount" of the estate and not by the separate legacies. If the laws of the 
 State in which the testator died provide that the adopted child takes the same 
 as the issue of the deceased, then the tax on the legacy to such child would be 
 at the rate of 75 cents, multiplied by 1J for each $100 of such interest exceed- 
 ing $25,000, but not exceeding $100,000. If the laws of the State regard the 
 adopted child as a stranger in blood to the testator, the tax would be at the 
 rate of $5, multiplied by 1J for every $100 of clear interest. (T. D. 20388; 
 November 30, 1898. ) 
 Construction of section 29, act of June 13, 1898: 
 
 Section 29 of the war-revenue act is construed to mean that where the value of 
 the whole amount of personal property left by a decedent does not exceed 
 $10,000, no tax is imposed. Where such whole value exceeds $10,000 and 
 does not exceed $25,000, the tax is imposed, and the rate of tax upon the clear 
 value of each share is determined by the degree of relationship of the bene- 
 ficiary. Where the value of the whole amount of the personal property left 
 by a decedent exceeds $25,000, the rate of tax upon the clear value of each 
 share is determined by the degree of consanguinity and by the value of the 
 whole amount. (T. D. 20089; September 21, 1898.) 
 
 Heirlooms not exempt: 
 
 Internal-revenue laws do not exempt heirlooms from legacy tax. A legacy con- 
 ditioned on legatee marrying is subject to tax, but the tax is not payable until 
 the legacy is payable. Payment of legacy tax before distribution is imperative. 
 (T. D. 20392; December 3, 1898.) 
 
 The value of an income payable to a person for life is to be determined by 
 approved tables. Legacy tax is required to be paid thereon. Legacies to char- 
 itable institutions are not exempt from tax. (T. D. 20421; December 13, 1898. ) 
 
 The war-revenue act, imposing a legacy tax, does not apply to estates in process 
 of settlement prior to the passage of the act, or where the grantor died before 
 June 13, 1898. (T. D. 19561; June 23, 1898.) 
 Legacy tax determinable from inventory and appraisement: 
 
 The legacy tax may be determined by the value of an estate taken from the 
 inventory and appraisement made under oath and filed in the office of the 
 register or other probate officer. If the personal property of an estate exceeds 
 $10,000 in value, the tax accrues, though the aggregate of the separate shares 
 be below that amount. (T. D. 20061; September 15, 1898. ) 
 
118 
 
 Iiiquors — Special tax. 
 
 A fermented liquor made from hops and sugar and sold under the name "hop 
 beer" or any other name, if it resembles in general character, taste, etc., the 
 fermented malt liquor called "weiss beer," however small its alcoholic 
 strength, is subject to tax under the first section of the war-revenne act, and 
 persons who manufacture it for sale are required to pay special tax as brewers 
 and tax on this beer, and also special tax as malt-liquor dealers for selling it 
 in bottles. (T. D. 20233; October 22, 1898. ) 
 
 A person who sells blackberry wine (a fermented liquor made from blackberry 
 juice) is required to pay special tax as a liquor dealer for selling the wine, 
 unless he is the manufacturer of it and has made it from berries grown by 
 himself or gathered wild by himself or by persons in his employ, and the wine 
 is sold by him only at the place of manufacture or at his one "general busi- 
 ness office" (sec. 3246, Rev. Stat.). When he bottles the wine for sale he must 
 pay stamp tax and affix the requisite stamp on each bottle. (T. D. 20366; 
 November 21, 1898.) 
 
 Opinion of the Attorney-General on the question of the liability of retail dealers 
 to the additional tax of $1 a barrel on fermented malted liquor, bought prior 
 to June 14, 1898, and held in stock on that date, is that the act, as amended, 
 still holds the brewer or manufacturer liable to the tax of $2 instead of $1 a 
 barrel. (T. D. 20464; December 28, 1898.) 
 Beer in hands of brewers — Increased tax: 
 
 The Attorney-General has decided that only beer in the hands of brewers, or 
 stored in warehouse by them, is subject to the increased tax. Stock which 
 was stored in hands of wholesale or retail dealers, who were not brewers or 
 agents of brewers, is not subject to the additional tax. Where assessments 
 have been made which by this decision are erroneous, claims can be made 
 for abatement or refund, as the case may be. (T. D. 20487; January 3, 1899.) 
 Failure to affix necessary stamps: 
 
 The Attorney-General, in opinion rendered December 30, 1898, holds that in 
 case of evasion and willful failure to buy and affix the necessary stamps on 
 fermented liquors the tax should be collected and assessed at its full amount, 
 $2 per barrel. The discount provided by the war-revenue act does not apply 
 to the additional tax, which must be assessed at the full rate, viz, $1. 
 Ingwer liqaeur: 
 
 Ingwer liqueur, composed of alcoholic liquor and sugar, with a flavoring of gin- 
 ger, is not a medicine under whatever label it may be sold, but belongs in the 
 general class of liqueurs or cordials, for the manufacture of which for sale the 
 special tax of a rectifier must be paid, and for sale of which the special tax of 
 a liquor dealer. (T. D. 20498; January 4, 1899.) 
 Sales separately made are separately taxed: 
 
 Where a retail dealer sells to one person a one-eighth barrel of one kind of beer, 
 a one-eighth barrel of another kind, and so on, upon a single order, he sub- 
 jects himself to special tax as a wholesale dealer, unless each package differs 
 in price from the other, in which case each is regarded as the subject of a 
 separate sale, or unless (where the beers are similar in price and quality) a sep- 
 arate order is given by the purchaser for each package. In either of these 
 cases each package is to be regarded as separately sold, and the special tax of 
 a wholesale dealer is not required to be paid therefor. (T. D. 20502; January 
 6, 1899.) 
 
 The manufacturer of the compound liquor known as "fake wine" is required 
 to pay special tax as rectifier. Each bottle of the compound is subject to stamp 
 tax under Schedule B, act of June 13, 1898. (T. D. 20509; January 9, 1899. ) 
 
119 
 
 Liquors— Special tax— Continued. 
 Form 46 for refunding additional tax: 
 
 In the preparation of a claim for refunding additional tax paid on fermented 
 liquors Form 46 should be used, and an affidavit made by the deponent, 
 showing he (or they) are bona fide owners of the liquor, being neither brewer 
 nor the agent of a brewer, and that he (or they) purchased the same, tax 
 paid, prior to June 14, 1898. (T. D. 20755; February 28, 1899.) 
 Clubs and retail liquor tax: 
 
 In regard to clubs, as to whether they shall pay special tax as retail liquor deal- 
 ers or as proprietors of a billiard room, it is held that any course of selling, 
 though restricted to a class of persons without a view to profit, is within the 
 meaning of the statute imposing the special tax; but a club is not required to 
 pay special tax as a proprietor of a billiard room by reason of keeping billiard 
 tables for the use of members and invited guests. (T. D. 19745; July 21, 
 
 . 1898. ) ' 
 
 The special tax of a retail liquor dealer (or malt-liquor dealer, as the case may 
 be) is required to be paid for the sale of alcoholic liquor at army canteens, if 
 the canteens are not Government agencies and the sales of liquor there are 
 made for individual profit. (T. D. 19994; August 31, 1898.) 
 Retailing liquor on boats: 
 
 A special-tax stamp is not permitted to be issued for the retailing of liquor on 
 any boat that is not engaged in the business of carrying passengers. This is 
 the settled ruling, in view of the joint resolution of Congress of May 8, 1876. 
 (See Compilation, 1900, p. 114.) (T. D. 663; May 23, 1903.) 
 
 Ruling 663 (Treasury decision) is not intended to forbid the issuance of special- 
 tax stamps for the retailing of alcoholic liquors on excursion boats. (T. D. 
 671; June 23, 1903.) 
 Fermented liquor as a tonic: 
 
 A person who manufactures a tonic by the fermentation of molasses, hops, 
 sugar, and wheat bran, produces thereby a fermented liquor made from a 
 substitute for malt, within the meaning of the first subdivision of section 3244, 
 Revised Statutes, and is therefore required to qualify and pay special tax as a 
 brewer, and also special tax as a malt-liquor dealer, for selling beer in bottles 
 (T. D. 646; March 31, 1903.) 
 
 A special-tax stamp taken out under the internal-revenue laws by any person 
 as a liquor dealer can not protect him from the consequences of selling alco- 
 holic liquor on a forest reservation, or at any place where such sales are pro- 
 hibited by other laws or regulations. (T. D. 694; September 14, 1903.) 
 Liquor sales — Special tax. 
 Grape cider: 
 
 The sale of a beverage called "grape cider," which appears to be a sweetened 
 wine, requires payment of special tax as liquor dealer. (See also Decisions 
 Nos. 27, 48, 55, and 88.) (T. D. 20; January 23, 1900.) 
 Malt extracts sold by druggists: 
 
 Every malt extract composed of malt liquor combined with drugs may be sold 
 by a druggist by the bottle under labels specifying the diseases for which it is 
 held out as a remedy, without involving him in liability as a retail malt-liquor 
 dealer, if he sells it in good faith for medicinal use only. (T. D. 19; January 
 22, 1900.) 
 Medical prescriptions: 
 
 A physician who prescribes and sells to his patients whisky, brandy, wine, or 
 any other alcoholic liquor that is not compounded into a medicine by the ad- 
 mixture of any drug or medicinal ingredient therewith, is required to pay 
 
120 
 
 Liquor sales — Special tax — Continued. 
 Medical prescriptions — Continued. 
 
 special tax as a retail liquor dealer, even though the alcoholic liquor thug fur- 
 nished be prescribed as a medicine only and so used. (T. D. 4; January 3, 
 1900.) 
 Orders in social clubs; 
 
 Every social club that receives orders from its members for alcoholic liquor in 
 any quantity less than 5 gallons, and furnishes the liquor so ordered and col- 
 lects pay therefor, "or accepts the consumer's promise to pay in the future," 
 sells the liquor to its members and is a retail liquor dealer under the internal- 
 revenue laws, and is required to pay special tax accordingly. (T. D. 8; Jan- 
 uary 8, 1900.) 
 Liquor dealers and rectifiers — Special tax. 
 
 One special-tax stamp taken out by the proprietor of a pleasure resort under his 
 sole control is sufficient to cover his sales of liquor at any number of separate 
 stands or booths within the grounds composing this resort. (T. D. 169; June 
 29, 1900. ) 
 
 The addition of the herb woodroof, or its essence, to Rhein wine, for sale under 
 the name of Mai wine, does not change the wine into a spurious, imitation, or 
 compound liquor, and the special tax of a rectifier is not to be paid therefor. 
 (T. D. 189; July 28, 1900.) 
 
 The special tax of a liquor dealer is not required to be paid by a hospital for fur- 
 nishing alcoholic liquors as medicines to its patients, if it is not conducted for 
 the pecuniary profit of those who are managing and controlling it, but is a 
 public institution, founded and conducted for the general good and not as a 
 business. (T. D. 190; July 30, 1900.) 
 
 The addition to spirits of water only does not change the spirits into a spurious, 
 imitation, or compound liquor (section 3244, Rev. Stat., par. 3), and, there- 
 fore, the special tax of a rectifier is not required to be paid on this account. 
 (T. D. 194; August 8, 1900.) 
 
 Where a person, not otherwise a dealer in liquors, takes a stock of liquors on a 
 chattel mortgage to secure a debt, he is entitled under the exempting provi- 
 sion of the statute to dispose of this entire stock at one sale without paying 
 special tax therefor. (T. D. 204; August 24, 1900.) 
 Liquor kept for sale in bottles: 
 
 A retail liquor dealer who mixes whisky, sugar, and water, and puts the same 
 in jugs and bottles, keeping it in stock in that form, and selling it when called 
 for as other liquors in stock, or who reduces whisky by mixing water and 
 restores the color by the addition of blackberry juice, is a rectifier. See 
 decision of United States district court for middle district of Tennessee (Stark 
 v. Nunn) in regard to the liability of retail liquor dealers. (T. D. 121; May 5, 
 1900.) 
 
 One special-tax stamp taken out by a retail liquor dealer for his building covers 
 his sales of liquor by retail at any number of bars in rooms or on premises 
 belonging to that building. (T. D. 142; June 2, 1900. ) 
 Rectifier's tax: 
 
 A person who buys berries or any small fruits (except grapes) and makes wine 
 therefrom, does not come within the exempting provision of section 3246, 
 Revised Statutes, in selling such wines, and is required to pay special tax as a 
 liquor dealer for selling it, even if at the place of manufacture. (T. D. 167; 
 June 28, 1900.) 
 
 The ruling of July 21, 1897 (Revenue Journal, 1897), modified by the decision 
 of the United States district court in the case of Stark v. Nunn, collector, 
 
121 
 
 Xiquor dealers and rectifiers— Special tax— Continued. 
 
 Bectifier's tax — Continued. 
 
 (Treasury Decisions, internal-revenue ruling No. 121), wherein it is held that 
 a retail liquor dealer who compounds spirits, even in quantities less than 5 
 gallons, and puts them up in bottles or jugs, and keeps them in stock for sale, 
 must be required to pay special tax as rectifier. (T. D. 154; June 12, 1900.) 
 
 Alcohol recovered by still is rectification: 
 The recovery of alcohol by the use of a still is rectification, and every person 
 engaged therein is to be regarded as a rectifier and required to pay special tax 
 accordingly (section 3244, Revised Statutes, third subdivision), except an 
 apothecary who thus recovers alcohol that has been used by him in the prepa- 
 ration or making up of his medicines, the alcohol thus recovered to be again 
 used by him for the same purpose, under the exempting provision of section 
 3246, Revised Statutes. (T. D. 95; April 13, 1900.) 
 
 Alcoholic flavoring sirups: 
 
 Where an alcoholic flavoring sirup is used at a soda fountain, for sprinkling into 
 a glass of soda water, the quantity being so small as to give merely a flavor to 
 the water, the special tax of a liquor dealer is not required to be paid for the 
 sale of the beverage. (See ruling 58, T. D., March 8, 1900.) (T. D. 223; 
 October 8, 1900.) 
 
 Conviction as retail liquor dealer: 
 One may be convicted of carrying on the business of a retail liquor dealer with- 
 out payment of the required tax, though the article is put up in bottles and 
 labeled as an appetizer and he did not know its nature when he bought it, it 
 in fact containing a large per cent of alcohol and nothing of a curative char- 
 acter, and the circumstances of purchases from him being such as to show that 
 his customers are buying it merely as an intoxicant. ( T. D. 516; April 12, 1902.) 
 Whenever a special-tax stamp is issued or transferred, the collector is required 
 to state therein the particular place of business for which it is issued or to 
 which it is transferred. This is an imperative requirement of the law and 
 regulations, and there must be no deviation therefrom for any reason whatso- 
 ever. (T. D. 527; May 24, 1902.) 
 
 Manufacture of extract partly alcoholic: 
 The special tax of a rectifier and liquor dealer is not required to be paid for the 
 manufacture and sale of an extract containing a noticeable quantity of alcohol, 
 if it is not itself a beverage or fit for use as a, beverage, but is used only as 
 flavoring for a glass of water. The special tax of a liquor dealer is not required 
 to be paid for the sale of a beverage composed of an ounce or two of clare 
 phosphate mixed with a glass of soda water. (T. D. 58; March 3, 1900.) 
 
 Halt liquor dealers bottling beer: 
 Brewers are required to pay special tax as malt-liquor dealers for each and every 
 place at which they are engaged in selling bottled beer and take out a separate 
 special-tax stamp for each distinct and separate place at which such sales are 
 made. (T. D. 102; April 18, 1900.) 
 Internal revenue circular No. 568, setting forth to collectors instructions relating 
 to special-tax stamps of liquor dealers for the special-tax year ending June 30, 
 1901. (T. D. 114; May 1, 1900.) 
 
 T/se of book, Form 52, for entries: 
 Where persons who are merely retail liquor dealers take out a special-tax stamp 
 as wholesale liquor dealers for the purpose of enabling them to buy spirits at 
 wholesale prices from the distillers, they must keep the book, Form 52, and 
 make entries therein of the packages received and also of the packages set over 
 to themselves as retail liquor dealers. (T. D. 210; September 7, 1900.) 
 
122 
 
 Liquor dealers and rectifiers — Special tax — Continued. 
 Liquor taken and sold for freight charges: 
 Where alcoholic liquor shipped in bottles (cases) is taken by a railroad company 
 to secure payment of freight charges the auctioneers of the company may sell 
 the liquor "in one parcel only," under the exempting provision of section 4, 
 act of March 1, 1879 — though the quantity sold is less than 20 wine gallons— 
 without involving themselves or the railroad company in, special-tax liability. 
 (T. D. 255; December 7, 1900.) 
 
 Obscure marking and branding: 
 Obscure and illegible marking and branding on the stamp heads of wholesale 
 liquor dealers' packages requiring the closest scrutiny to decipher is held not 
 to be in compliance with the law and regulations, and packages so marked 
 hereafter sent out will be subject to seizure. (T. D. 566; August 13, 1902.) 
 
 Refusal record of packages received: 
 The refusal or neglect of any wholesale liquor dealer to enter upon record any 
 distilled spirits received in wholesale packages under pretext that such spirits 
 are received by him in his capacity as a retail liquor dealer, must be regarded 
 as a violation of law (sec. 3318, Rev. Stat.), and the offender reported as sub- 
 ject to the fines and penalties denounced by said section. In this connection, 
 attention is invited to the fact that it is not necessary in such cases to show a 
 fraudulent intent, as the law imposes the fines and penalties for neglect or 
 refusal. (T. D. 455; January 2, 1902.) 
 
 Violation of section 3319, Revised Statutes: 
 Wholesale liquor dealers can not receive for sale packages of distilled spirits from 
 a person who is neither a rectifier, distiller, nor wholesale liquor dealer with- 
 out violating section 3319, Revised Statutes. But that person can, without 
 sending the packages of spirits to them, make them his agents for their sale, 
 and, on his doing so, they can dispose of the spirits by means of a bill of sale 
 delivered to the purchaser at their place of business where they hold the 
 requisite special-tax stamp, and the person taking such bill of sale can receive 
 the packages of spirits at any other place from the owner of them, and the 
 latter not thereby become involved in special-tax liability as a wholesale liquor 
 dealer. (T. D. 591; October 18, 1902.) 
 
 Keeping a demijohn for convenience, not specially taxed: 
 A retail liquor dealer who reduces with water a small quantity of whisky (less 
 than 5 gallons) and mixes it with sugar, or other material, keeping it in a 
 demijohn or other receptacle, merely for his own convenience in meeting 
 orders of his customers at his bar, and does not make it a practice to put up 
 the compound in bottles in advance of orders therefor for sale, is not to be 
 regarded as having thereby involved himself in special-tax liability as a recti- 
 fier. — Ruling 177 (Treasury Decisions, 1900) modified accordingly. (T. D. 418; 
 October 5, 1901.) 
 
 Liquor sold in local-option districts: 
 Every person engaged in sale of liquor in local-option districts must nevertheless 
 pay special tax as liquor dealer under the internal-revenue laws of the United 
 States. His special-tax stamp, however, is not a license, but a receipt for the 
 tax. (T. D. 302; March 18, 1901.) 
 
 Goods sold only where kept for Bale : 
 Upon a writ of error to the circuit court of the United States for the ninth cir- 
 cuit to recover special revenue tax as both wholesale and retail liquor dealer, 
 under subdivision 4, section 3244 of the Revised Statutes, the court holds that 
 
123 
 
 Liquor dealers and rectifiers— Special tax— Continued. 
 Goods sold only where kept for sale — Continued. 
 
 goods are offered for sale at the place only where they are kept for sale and 
 where a sale may be effected. They are not offered for sale elsewhere by send- 
 ing abroad an agent with samples, or by establishing an office for the purpose 
 of taking orders. (T. D. 310; March 25, 1901.) 
 A trustee of a retail liquor dealer can sell the stock of such dealer at the dealer's 
 place of business at retail without payment of another special tax. (T. D. 412; 
 September 24, 1901. ) 
 Retail liquor dealer receiving wholesale order: 
 A person holding a special-tax stamp only as a retail liquor dealer is not entitled 
 to accept any order for a quantity of alcoholic liquor amounting to 5 gallons 
 or more, even though he fills the order by shipping from time to time less 
 than 5 gallons. (T. D. 655; April 15, 1903.) 
 Wholesale malt liquor dealer changing to wholesale liquor dealer: 
 
 A person who has carried on business as a wholesale dealer in malt liquors 
 throughout the month of July, and thereafter changes his business to that of a 
 wholesale liquor dealer, and pays special tax accordingly, is not granted by the 
 _ law any rebate or allowance on account of the special-tax stamp taken out by 
 him in July for the year beginning July 1, notwithstanding the fact that he 
 has no further use for this stamp, by reason of having taken out another 
 special-tax stamp to cover his business as a wholesale liquor dealer. (T. D. 
 693; September 14, 1903. ) 
 
 M. 
 
 Marks on packages of distilled spirits: 
 
 On and after January 1, 1904, under amendatory regulations, every wholesale 
 liquor dealer will be required to mark legibly with a stencil plate, in durable 
 ink, on the head of each package of distilled spirits filled and stamped by him 
 the present proof of the spirits contained in such package, as indicated in the 
 application for stamp to cover the same and as entered in the body of the 
 stamp. Such marking will be in addition to the marks heretofore prescribed 
 and will consist of the word " proof," followed by the numerals denoting the 
 present proof, which will be applied to the head of the package, close to the 
 left-hand margin of the stamp and parallel thereto. (T. D. 716; November 9, 
 1903.) 
 
 It is not necessary for a person qualifying as rectifier for the sole purpose of rec- 
 tifying for other persons to qualify as wholesale liquor dealer. Book Form 52 
 should contain careful entries of the packages of spirits received for rectifica- 
 . tion, stating the date when, the name of the person or firm from whom, and 
 the place whence the spirits were received, etc. (T. D. 640; March 17, 1903.) 
 Hail carriers — Stamp tax. 
 
 Under date of January 4, 1900, this Office, in a letter to the Second Assistant 
 Postmaster-General, held that under the paragraph of Schedule A, act of June 
 13, 1898, beginning with the words "Express and freight," mail carriers who 
 make a practice of carrying packages from one town to another town, for which 
 they receive a fee, are carriers within the meaning of the law, and must, for 
 each package so carried, issue a receipt, to which receipt must be affixed a 
 1-cent stamp. (T. D. 478; March 3, 1902. ) 
 Manifests — Stamp tax. (See also Bills of lading; Receipts; and Decision 19605.) 
 
 The words " Manifest for custom-house entry," in the act of June 13, 1898, are 
 construed as intending to impose the duty upon manifests of cargoes entering 
 the country as well as upon cargoes clearing. (T. D. 19709; July 18, 1898.) 
 
124 
 
 manufactured tobacco. 
 
 Application of section 3363, Revised Statutes: 
 Section 3363, Revised Statutes, requires that the "caution" label shall distinctly 
 state that "the manufacturer of this tobacco has complied" with the law, and 
 cautions every person, under legal penalties, not to re-use an emptied tobacco 
 or snuff package. Section 3376, Revised Statutes, likewise prohibits, under 
 penalties of fine and imprisonment, the re-use of any emptied or partially 
 emptied package, wrapper, envelope, etc., of tobacco or snuff, and requires 
 that the stamp thereon shall be destroyed by trie person who has possession 
 of such emptied package or wrapper, etc., subject, by neglect, to a fine of $50.. 
 (T. D. 518; May 12, 1902.) 
 
 Manufacturera' tobacco accounts: 
 Collectors are not required to make semiannual reports on Forms 144 and 146 of 
 cigar and tobacco manufacturers' accounts for July 1 , 1903. The semiannual 
 reports on these forms were required only when there was a change in the 
 rate of tax. (T. D. 674; July 3, 1903. ) 
 
 Packing plug tobacco: , 
 
 Manufacturers are authorized, under regulations No. 8, page 45, and the last two 
 paragraphs on page 46, to put up their plug tobacco in pasteboard boxes, jvhich 
 shall contain not less than 1 nor more than 5 pounds of tobacco. (T. D. 683; 
 July 21, 1903.) 
 
 Sales through vending machines: 
 There appears no reason why original stamped packages of tobacco can not be 
 sold through the medium of the vending machine, it being understood that 
 only unbroken stamped packages shall be delivered from such machine. It 
 has been held by this Office that the use of a vending machine can not be 
 approved for the sale of the contents of broken stamped packages of caven- 
 dish, plug, or twist tobacco. This ruling will be strictly adhered to, but the 
 objection does not apply when unbroken stamped packages are to be sold. 
 (T. D. 708; October 5, 1903.) 
 
 Manufacturers of wine. 
 Federal v. local tax. 
 While a person who manufactures wine from fruit of his own growing (or from 
 grapes that are grown by himself or by others) and sells it at the place of 
 manufacture, or at one "general business office," is exempted by the provi- 
 sions of section 3246, Revised Statutes, from special tax as a liquor dealer under 
 the internal-revenue laws of the United States on account of such sales, yet 
 this exemption does not protect him from prosecution under the laws of his 
 State or under local ordinances for selling his wine in violation of those lawa. 
 See on this point section 3243, Revised Statutes. (T. D. 705; October 2, 
 1903.) 
 
 Fruit distillers' record: 
 The fruit distillers' record No. 25£ has been revised under date of July 25, 1900, 
 and is hereby prescribed for use by all new distillers who shall hereafter com- 
 mence operations, and by all other distillers so soon as the books now in use 
 shall be exhausted, but in no case later than the close of the current season. 
 The fruit distiller's monthly account, Form 15, has also been revised so as to 
 require, in addition to the information heretofore reported, an account of the 
 brandy sold or removed and the name of the person to whom sent and loca- 
 tion. (T. D. 214; September 17, 1900.) 
 
125 
 
 Manufacturers of tobacco — Special tax. 
 Manufacturers of cigars purchasing leaf tobacco: 
 Subsection 6, section 3244, Revised Statutes, as amended, provides that it shall 
 be lawful for any licensed manufacturer of cigars to purchase leaf tobacco of 
 any licensed dealer or other licensed manufacturer in quantities less than the 
 original package for use in his own manufactory exclusively, and it is held 
 that section 69, act of August 28, 1894, does not repeal this provision of the 
 former statute. (T. D. 373; June 27, 1901.) 
 
 Manufacturers' accounts of leaf tobacco: 
 
 Collectors are advised of rules and regulations (No. 8, revised, supplement 2) 
 concerning taxes on tobacco, snuff, cigars, and cigarettes, and relating to rebate 
 of taxes on tobacco, snuff, and cigars held by manufacturers and dealers on 
 the 1st day of July, 1901, under act of March 2, 1901. (T. D. 307; March 23, 
 1901.) 
 
 Manufacturers of tobacco are required to account for all their leaf tobacco on 
 book 74 and store it on the bonded factory premises unless, on account of 
 increased business and contemplated changes in their factory premises, they 
 desire to have the temporary privilege of outside storage. (T. D. 374; June 
 28, 1901.) ' 
 
 Labeling small packages: 
 All small packages of plug or twist tobacco containing less than 1 pound of 
 tobacco, under the amended regulations relating to tobacco, shall be properly 
 labeled, and the stamp or stamps affixed to the package must denote the weight 
 of the tobacco contained therein, but it will not be necessary to print or mark 
 on such packages the gross weight, the tare, or the net weight. (T. D. 376; 
 July 6, 1901.) 
 
 Unused stamps in manufacturers' hands: 
 
 Unused tobacco and snuff stamps, in the hands of manufacturers when the act of 
 March 2, 1901, takes effect, can not be redeemed for the purpose of securing 20 
 per cent discount. Cigar and small cigarette stamps of present issue, unused 
 at that time, may be redeemed under existing provisions of law. (T. D. 341; 
 May 7, 1901.) 
 
 Use of internal-revenue stamps: 
 Internal-revenue stamps issued for payment of tax on packages of smoking tobacco 
 of the denominations now authorized by law may be used, if necessary, either 
 alone, or in conjunction with the 1-ounce or the onerhalf-pound stamp now 
 issued for stamping packages of plug or twist tobacco. If one stamp will not 
 suffice for the payment of the full amount of tax due on a single package, the 
 manufacturer may affix another stamp to such package where the two stamps 
 so used will cover the actual amount of tax due on the package. (T. D. 376; 
 July 6, 1901.) 
 
 Manufacturers' privileges as to purchase and sales: 
 
 Manufacturers are privileged to sell leaf tobacco to qualified manufacturers of 
 cigars for use in their own factories exclusively. Manufacturers are not privi- 
 ledged to purchase leaf tobacco in large quantities, exceeding the demands of 
 their factories, for the purpose of selling it to other manufacturers, indirectly 
 engaging in the business of a dealer in leaf tobacco on their factory premises. 
 (T. D. 373; June 27, 1901.) 
 
 Manufacturers of tobacco not privileged to store leaf tobacco outside of bonded 
 premises, unless increased business and contemplated changes in factory prem- 
 ises make temporary outside storage necessary. (T. D. 374; June 28, 1901.) 
 
126 
 
 Manufactures of tobacco — Special tax — Continued. 
 Tobacco put up in wood, pasteboard, paper packages: 
 Kegulations, No. 8, as amended by supplements Nos. 1 and 2, relating to tobacco, 
 are further amended to allow qualified manufacturers of tobacco to prepare 
 and put up their plug, cavendish, and twist tobacco in packages made of 
 wood, pasteboard, paper, metal, or other material, used separately or in com- 
 bination, and containing less than 1 pound of tobacco. (T. D. 376; July 6, 
 1901.) 
 
 Imitation packages forbidden: 
 A manufacturer should not use imitation tobacco packages when they are the 
 counterpart of packages used by him for packing his tobacco, and all such 
 unstamped imitation packages will be subject to the most rigid inspection 
 when found intermingled with statutory packages. All such packages, put up 
 in imitation of statutory packages of tobacco, snuff, cigars, or cigarettes, are 
 subject to forfeiture. (T. D. 312; March 26, 1901.) 
 
 Manufacturers' registry. 
 
 Persons required to register must do so on the 1st day of July next, and 
 thereafter on the 1st day of July each year or on commencing business. Col- 
 lectors will furnish timely notice of change in the law affecting manufacturers 
 of tobacco, snuff, and cigars, and dealers in leaf tobacco, placing in the hands 
 of each a blank, Form 277, early enough to enable such persons to render their 
 return for register within the time required by law. (T. D. 505; April 17, 
 1902.) 
 
 Marking packages. 
 
 In view of section 2, act of July 1, 1902, and the provisions of section 69, act of 
 August 28, 1894, manufacturers of tobacco are required to print or mark on 
 each statutory package of cavendish, plug, leaf, twist, and fine-cut chewing 
 tobacco, put up in bulk for consumption, the gross weight, the tare, and the 
 net weight. The gross weight must include the full weight of the package 
 and its contents; the tare shall include the weight of the box, barrel, pail, 
 caddy, or other statutory package, with its lining, covering, lables, and tin- 
 foil wrappings. The tare subtracted from the gross weight will determine the 
 net weight of the package upon which the tax must be paid. (T. D. 556; 
 July 18, 1902.) 
 
 Marine insurance tax. 
 Policies issued by foreign companies taxable: 
 Marine insurance polices issued by foreign companies having no established 
 agencies in the United States are nevertheless subject to the stamp tax, when 
 obtained by or through insurance brokers residing in this country. (T. D. 
 20259; October 25, 1898.) 
 
 Marine policies under Schedule A. 
 
 Collectors are authorized under Schedule A, war-revenue law, to accept the fix- 
 ing to the books of the underwriters, of the stamps representing the tax on 
 premiums charged on certain marine insurance policies. (T. D. 19645; June 
 30, 1898. ) 
 
 Mechanical appliances. 
 
 It is held that the article called the "Fulton complexion brush" and electric 
 belts are mechanical appliances that are not included in those parts of 
 Schedule B, war-revenue act, taxing perfumery, cosmetics, medicinal prepara- 
 tions, and similar articles. (T. D. 19702; 19733; July 15 and 19, 1898.) 
 
127 
 
 Medical preparations— Stamp tax. (See also Petroleum, Proprietary articles, 
 and Decision 20498. ) 
 
 Bicarbonate of soda being an uncompounded medicinal chemical is exempt 
 from stamp taxation under section 20, act of June 13, 1898. (T. D. 20839; 1 . 
 March 10, 1899. ) 
 
 Hydrogen peroxide is held to come within the exemption provided under and 
 by section 20, act of June 13, 1898, for "any uncompounded medicinal drug or 
 i chemical." (T. D. 20912; March 20, 1899.) 
 
 Lanoline and adeps lanpe, cum aqua, held not to come within the exemption from 
 stamp tax provided under section 20, act of June 13, 1898, for "any uncom- 
 pounded medicinal drug or chemical." (T. D. 20913; March 22, 1899.) 
 
 Phenacetin and similar uncompounded medicinal drugs or chemicals held not 
 to be compounded as contemplated by section 20, act of June 13, 1898, when, 
 by the addition of starch, lactose, etc., they are placed in pill form for admin- 
 istration. (T. D. 21278; June 15, 1899.) 
 Medicinal proprietary preparations: 
 
 A fermented malt liquor, though diluted to such an extent as to be called non- 
 intoxicating, is a beverage for the sale ol which special tax must be paid under 
 the internal-revenue laws; and when it is sold under a label reading "Kraft's 
 Temperantia Invigorating Tonic," stamp tax must also be paid thereon as a 
 medicinal proprietary preparation under Schedule B, act of June 13, 1898, even 
 when it contains no drugs or medicinal ingredients. (T. D. 21473; August 8, 
 1899. ) 
 
 An abridged cautionary notice may be affixed to samples of medicines intended 
 for gratuitous distribution in certain cases. (T. D. 21611 ; September 18, 1899. ) 
 Stamping medical preparations: 
 
 In computing taxes on medicines furnished by physicians who advertise their 
 ability to cure diseases, the following methods are pursued, viz: 1. Where a 
 specific charge is made for services and a specific charge made also for medi- 
 cines, the medicines must be stamped according to the amount charged for 
 them. 2. Where services are not charged but medicines are, they must be 
 stamped according to price fixed by the physician. 3. Where physicians 
 profess to furnish medicines free to patients but charge for advice, the tax is 
 estimated by the whole charge made. (T. D. 21612; September 19, 1899. ) 
 Articles taxed as medicinal if used as such: 
 
 The only rule by which, for purposes of stamp tax, it can be determined whether 
 an article is medicinal is whether it is used for the cure or palliation of pain 
 or of disease. It can not be determined by its constituent elements nor by the 
 commonly received opinion of its merits or qualities. (T. D. 21734; Novem- 
 ber 4, 1899.) 
 
 Any beverage, whether intoxicating or otherwise, may be rendered taxable as a 
 medicinal preparation by designating it as a tonic if sold under a trade-mark 
 or other claim of proprietorship. (T. D. 21755; November 10, 1899.) 
 
 Angostura Bitters: 
 The special taxes of a rectifier and liquor dealer are not required to be paid for 
 the manufacture and sale of Angostura Bitters that are a mere alcoholic extract 
 suitable only for use medicinally or in giving an agreeable flavor to beverages. 
 (T. D. 21802; November 23, 1899.) 
 
 Aerated distilled water: 
 Aerated distilled water is exempt from stamp tax under section 20, war-revenue 
 law, even though advertised as a remedy or as a cosmetic (T. D. 21833; 
 December 7, 1899. ) 
 
128 
 
 Medical preparations — Stamp tax — Continued. 
 Aerated distilled water — Continued. 
 
 Granose flakes, a food product, is taxable because it is recommended as a cure 
 for sick headache, catarrh of the stomach, indigestion, etc. (T. D. 20393; 
 December 5, 1898. ) 
 
 Unclarified petrolatum which requires further chemical manipulation to place it 
 in a salable condition may be shipped in bulk without stamps; the finished 
 product must, however, be stamped, in whatever quantity sold. (T. D. 20413; 
 December 7, 1898.) 
 Subjects of taxation, Schedule B : 
 
 The subjects of taxation included in Schedule B, war-revenue act, according to 
 Attorney-General's opinion, December 22, 1898, comprise: (1) Medicinal articles 
 compounded by any formula, published or unpublished, which are put up in 
 style or manner similar to that of patent, trade-mark, or proprietary medicines 
 in general; (2) medicinal articles compounded by any formula, published or 
 unpublished, which are advertised on the package or otherwise as remedies 
 or specifics for any ailment, or as having any special claim to merit, or to any 
 peculiar advantage in mode of preparation, quality, use, or effect. (T. D. 
 20460; December 22, 1898.) 
 
 Duffy's Pure Malt Whiskey is, by being advertised as a cure for consumption, 
 dyspepsia, malaria, etc., rendered liable to a stamp tax as a medicinal article 
 under the provisions of Schedule B, act of June 13, 1898. (T. D. 19646; July 
 5, 1898.) 
 
 Food preparations generally, unless so advertised as to bring them within the 
 category of medicinal preparations, are not taxable under the internal-revenue 
 laws. (T. D. 19687; July 13, 1898.) 
 
 Bitters will be presumed to be medicinal preparations and taxable, unless their 
 nonmedical character is clearly shown. (T. D. 19703; July 15, 1898.) 
 
 Medicinal preparations not ordinarily sold at retail must be taxed according to 
 the price charged dispensing druggists. (T. D. 20202; October 18, 1898.) 
 
 Blackberry juice, preserved from spoiling by the addition of the necessary quan- 
 tity of spirits, is a medicinal article, and persons who sell it only under a label 
 specifying the diseases for which it is held out as a remedy, never knowingly 
 selling it to those who buy it for use as a beverage, are not required to pay 
 special tax as liquor dealers on account of its sale. (T. D. 20348; November 
 19, 1898. ) 
 Medicinal preparations. (See also Proprietary articles.) 
 
 Every compound which is held out as a remedy for disease (even though the 
 formula by which it is made is not a secret, and the manufacturers claim no 
 proprietary right therein) is subject to stamp tax under Schedule B of the act 
 of June 13, 1898. (T. D. 19522; June 17, 1898.) 
 Certain proprietary articles taxable: 
 
 Certain proprietary articles, such as "concentrated extract of witch-hazel," 
 "compound licorice powder," and " seidlitz powders," are taxable under 
 Schedule B, act of June 13, 1898, because they are, first, all proprietary 
 medicinal articles; second, they are put up similarly to proprietary articles in 
 general; third, because the disease? for which they are remedies are put on 
 the labels; and, fourth, because they make special claim to excellence. (T. D. 
 19617; July 2, 1898.) 
 
 Malt extract is liable to stamp tax under Schedule B, act of June 13, 1898, the 
 same as other medicines. The fact that the substance of the article has 
 already paid tax as beer does not operate to exempt it from tax in its new and 
 medicinal form. (T. D. 19599; June 27, 1898.) 
 
X29 
 
 Medical preparations* — Continued. 
 Soaps that are curative : 
 Soaps are taken out of the category .of toilet or laundry articles by a special 
 claim being made for their curative or healing properties, or for their effects 
 on the skin or complexion, and in such cases the packages containing the 
 same must be stamped as medicinal or cosmetic articles. (T. D. 19564; June 
 23, 1898. ) 
 
 Memoranda— Stock certificates. 
 
 A memorandum of stock being the evidence of the holder's title to shares in the 
 property and franchises of a corporation, the circuit court of the United States, 
 southern district of New York (January 6, 1902) decides that "every person 
 who holds such a certificate in such artificial body, and shall transfer by sale 
 to another the right to participate in such corporation and to become a mem- 
 ber thereof, with the accompanying rights and benefits, shall pay a tax on the 
 contract or transaction whereby the transmission is effected." (T. D. 468; 
 February 4, 1902. ) 
 
 A memorandum of the delivery of stock made on a continuous agreement 
 between the pledger and the pledgee, regulating the deposit and disposition 
 of stock pledged as security, or such a memorandum made on a promissory 
 note given by a borrower, would be liable to tax under the provisions of para- 
 graph 1, Schedule A, act of March 2, 1901, being an evidence of stock delivered 
 as security for the future payment of money. (T. D. 473; February 8, 1902.) 
 Memoranda: Orders or sales — Special tax. 
 Exemptions of memoranda under war-revenue law : 
 
 As to the exemption of memoranda of sales of farmers' products on an exchange 
 or board of trade by the amendment to paragraph 2 of Schedule A, of the 
 war-revenue law, it is held that the clause of exemption from tax, by its terms, 
 extends only to the "case of products and merchandise actually delivered to, 
 and while in, vessel, boat, or car, and actually in course of transportation." 
 (T. D. 393; August 2, 1901.) 
 Orders solicited and received : 
 
 A person soliciting and receiving orders for transmission described in the third 
 paragraph of section 8, act of March 2, 1901, on his own account and for com- 
 missions, who transmits these orders to a correspondent living in another city, 
 is required to pay special tax provided for in that paragraph of the statute, 
 and to keep a book therein prescribed, and to issue and stamp a memorandum 
 for each of these orders received by him. (T. D. 331; April 22, 1901.) 
 Orders for transactions under act of 1901: 
 
 Persons engaged in taking orders for transactions described in paragraph 3, sec- 
 tion 8, act of March 2, 1901, are imperatively required by the statute to issue 
 a memorandum for every such order, and to affix and cancel the requisite 
 stamp thereon. They are not relieved from this requirement by the fact that 
 they transmit these orders to their correspondents elsewhere. (T. D. 329; 
 April 20, 1901.) 
 Stamping memoranda under act of 1901 : 
 
 A person engaged in the business described in the third paragraph of section 8 
 of the act of March 2, 1901, must (under pain of fine or imprisonment for 
 failure to do so), at the time of taking an order from a customer, issue a memo- 
 randum thereof, and affix thereto a stamp representng the tax of 2 cents on 
 every $100 (or fraction) of the value; and when he transmits this order to 
 another person in the same business the latter must issue a memorandum 
 thereof also and affix thereto the requisite stamp. (T. D. 345; May 17, 1901. ) 
 
 31331—05 9 
 
130 
 
 Mixed flour — Investigations. 
 
 Advertising matter: 
 If a manufacturer, packer, or repacker desires to place his c#rd or advertising 
 matter of any kind" inside the package he must first submit an exact copy of 
 same for the approval of the Commissioner of Internal Revenue. The said 
 card or other advertising matter must in no case be larger than the Govern- 
 ment card required by section 37, nor materially increase the weight or bulk 
 of the package, and it must not be of such character as to deceive the consumer 
 as to the contents' of the package. (T. D. 20204; October 18, 1898.) 
 
 Chief constituents: 
 Every person, firm, or corporation engaged in grinding together wheat, as the 
 principal constituent, with any other grain or other material, or mixing wheat 
 flour, as the principal constituent, with the flour made from any other grain or 
 other material, shall be deemed amaker or manufacturerof mixed flour. (T. D, 
 20203; October 18, 1898.) 
 
 Exportation of mixed flour: 
 The Commissioner, with the approval of the Secretary of the Treasury, issues 
 supplemental regulations governing the exportation of mixed flour. (T. D, 
 20322; November 12, 1898.) 
 
 Tax-paid mixed flour: 
 Tax-paid mixed flour returned to factory by purchasers may be destroyed by the 
 manufacturer without any record being made upon the Government record 
 book (Form 442) of its return or final disposition. The presence of an officer 
 to witness such destruction is unnecessary. If, however, the packages returned 
 are sold again, a record of the fact must be noted on the Government book. 
 (See Circular No. 154, Int. Rev., No. 585.) (T. D. 246; November 16, 1900.) 
 
 Investigations as to mixed flour: 
 Collectors are instructed to begin at once investigations relative to mixed flour, 
 as defined by the act of March 2, 1901, and have the same carried on as vigor- 
 ously as practicable, in order that a report of the result may be submitted by the 
 collector of each district on the first of the succeeding March; and, in submits 
 ting their reports, collectors are directed to state especially whether, in their, 
 opinion, the law relating to mixed flour is, to any extent, being evaded. 
 (T. D. 471; February 6, 1902.) 
 
 Intent of act of March 2, 1901: 
 
 The act of March 2, 1901, had for its object to more fully define the words 
 " mixed flour," and to give statutory authority for exempting from tax those 
 mixtures in which flour was not the chief component part except where the 
 mixture was intended for sale, or sold, or offered for sale, as mixed flour. 
 To be subject to tax as mixed flour, the blended product must either contain 
 over 50 per cent of wheat flour, or, if it contains a less per cent of wheat flour, 
 it must be intended for sale, or be sold or offered for sale, as wheat flour and 
 not as mixed flour. (T. D. 375; June 28, 1901. ) 
 
 Mixed flour definition modified: 
 The modified definition of "mixed flour" holds that, when the product result- 
 ing from the grinding or mixing together of wheat or wheat flour with any 
 other grain, or the product of any other grain of which wheat or wheat flour 
 is not the principal constituent, is intended for sale, or is sold, or offered for 
 sale, as wheat flour, such product shall be regarded as mixed flour, and the per- 
 son, firm, or corporation engaged in such grinding or mixing together shall be 
 deemed a maker or manufacturer of "mixed flour." (T. D. 322; April 9 
 1901. ) 
 
131 
 
 ^Moneys — Stamp tax. 
 
 Money drawn from bank on receipt taxable: 
 
 Where money is placed in the hands of an attorney to be loaned, and the attorney, 
 for convenience in keeping the account, deposits it in a bank in the name of the 
 principal, but with the understanding that he is to use it as his own, the attor- 
 ney can not use a receipt for the purpose of withdrawing money so deposited 
 in the name of his principal without putting a 2-cent stamp thereon. (T. D. 
 271; January 31, 1901.) 
 Moneys collected as rents by an executor, accruing after the death of the testator, 
 are not subject to legacy tax, but rents which accrued before the death, but which 
 were not paid, are considered as personal property of the testator's estate. 
 (T. D. 342; May 8, 1901.) 
 Special-tax stamp on receipts of money: 
 Where money is received in payment of special taxes receipts should not be 
 given, but the proper special-tax stamp, evidencing the payment of the special 
 tax, must be issued to the taxpayer. (T. D. 297; March 11, 1901.) 
 This office has always ruled that the privilege of withdrawing a bank deposit by 
 receipt is strictly confined to the person in whose name the money is doposited, 
 and such receipts must be presented by him to the bank personally. (T. D. 
 271; January 31, 1901.) 
 Mortgages — Stamp tax. 
 Act of 1899 not retroactive: 
 The act of February 28, 1899, is not retroactive, and stamps affixed to bonds and 
 mortgages and canceled prior to the approval of the act can not be refunded. 
 (T D. 20981; April 5, 1899.) 
 Conveyance of realty subject to mortgage, taxable: 
 A conveyance of realty sold subject to a mortgage should be stamped according 
 to the consideration or the value of the property unencumbered. The consider- 
 ation in such case is to be found by adding the amount paid for the equity 
 of redemption to the mortgage debt; and the fact that one part of the consid- 
 eration is paid to the mortgagor and the other to the mortgagee does not 
 change the liability of the conveyance. (T. D. 21314; June 22, 1899. ) 
 Stamps may be affixed to either mortgage or bond: 
 The Commissioner holds, with the Attorney-General's opinion, dated July 17, 
 1899, that a mortgage or deed of trust given to secure bonds which are to be 
 issued from. time to time by any company, corporation, or association is valid 
 so far as stamp taxes are concerned, although no stamp is affixed thereto, if 
 the bonds secured thereby are stamped as issued at the rate of 5 cents for each 
 1100, or fraction thereof. The stamps may be affixed to either the mortgage 
 or the bonds. (T. D. 21400; July 18, 1899. ) ' 
 Where a mortgage or deed of trust secures more than one bond or note the total 
 tax accruing on all the bonds or notes should be compared with the tax accru- 
 ing on the mortgage or deed of trust, and the stamp representing the highest 
 tax may be affixed to either the bonds or notes, as the parties may elect. 
 (T. D. 21471; August 7, 1899.) 
 Mortgage as part of purchase price: 
 
 A deed or mortgage executed and delivered prior to July 1, 1898, is subject to 
 stamp tax when offered for registration after that date in States where, by State 
 law, registration is necessary to pass title or establish valid lien. (T. D. 20838; 
 March 10, 1899. ) 
 When the instrument is simply a copy no taxation accrues. If it is in dupli- 
 cate, triplicate, etc., each having the same legal effect as the original, it is sub- 
 ject to taxation as an original mortgage. (T. D. 20797; March 7, 1,899.) 
 
132 
 
 Mortgages — Stamp tax — Continued. 
 
 Mortgage as part of purchase price — Continued. 
 
 Where the grantee is the original mortgagor, the taxable consideration will 
 always include the amount of the mortgage, as well as the part of the purchase 
 price paid in cash, and the deed must be stamped accordingly. The mortgage 
 given as part of the purchase price is taxable in itself, the same as any other 
 mortgage, subject to the amendment of February 28, 1899. (T. D. 21621; Sep- 
 tember 22, 1899. ) 
 
 Yearly renewals of chattel mortgages by affidavit, under the law of Michigan, 
 do not require stamps. (T. D. 20724; February 20, 1899.) 
 Bond not promissory note: 
 
 Under the act of Congress approved February 28, 1899, amending Schedule A, 
 act of June 13, 1898, a bond secured by mortgage, when given by a private 
 person, is to be considered as a bond, and not as a promissory note, and so 
 taxed. (T. D. 20917; March 25, 1899.) 
 Modification of decision 19932 as to mortgages: 
 
 Treasury decision 19932 is modified, making the ruling of this office as follows, 
 viz: W.hen real property is conveyed subject to a mortgage, if the deed con- 
 veying the same contains any covenant or statement that the grantee assumes 
 the mortgage and becomes liable thereby for a deficiency judgment in case of 
 foreclosure, then the amount of the mortgage is to be added to the value of 
 the equity of redemption in determining the consideration on which the 
 stamp tax is to be based. However, if there is no covenant or statement in 
 the deed whereby any liability of the grantee for the payment of the mortgage 
 can be implied, then the consideration is to be based only on the value of the 
 equity of redemption. (T. D. 21519; August 17, 1899.) 
 
 The conveyance used rnder the statutes of the State of Georgia in cases where 
 the payment of a debt is secured by pledging of real estate is taxable under 
 the paragraph in Schedule A relating to mortgage or pledge. The "bond to 
 reconvey " is subject to a tax of 50 cents. (T. D. 21667; October 14, 1899.) 
 Exemption of deeds, leases, and powers of attorney: 
 
 Deeds, leases, and powers of attorney executed and delivered previous to July 
 1, 1898, exempt from taxation. On deeds in trust and in deeds where the 
 consideration is "love and affection," tax based on actual value of property 
 conveyed. In correction deeds, the tax is same as that imposed on deed 
 corrected. Release deed and deeds terminating trusts taxable the same as 
 the instrument which they release or terminate. Assignment of mortgage 
 
 1 taxable on the basis of the amount assigned. Assignment of unexpired term 
 of lease taxable on the basis of the term assigned. Deeds conveying realty 
 subject to incumbrance, taxable according to actual value of realty conveyed, 
 regardless of any incumbrances that may exist. Clerk's certificate to notarial 
 acknowledgment, taxable 10 cents. Recorder or register must determine 
 what papers he will receive or reject. (T. D. 19932; August 20, 1898.) 
 
 Where mortgage states full amount secured and provides for present and future 
 issues of bonds, it should be stamped according to the full amount secured- 
 (T. D. 20226; October 13, 1898.) 
 
 Releases of mortgages and of deeds of trust operating as mortgages are not subject 
 to taxation, no matter in what form they are executed. (T. D. 20440; Decem- 
 ber 15, 1898.) 
 Express assignments not transfers, taxable : 
 
 The Commissioner rules that with reference to transfers of mortgages Congress 
 intended only to tax the express assignments and transfers of mortgages, and 
 not those that were merely implied or by operation of law, and that the transfer 
 
133 
 
 Mortgages— Stamp tax— Continued. 
 
 Express assignments not transfers, taxable— Continued. 
 
 or assignment of a mortgage to be liable to stamp tax under the terms of 
 Schedule A, act of June 13, 1898, must be made in writing and signed by the 
 assignor. (T. D. 21780; November 17, 1899.) 
 Promissory notes and mortgages: 
 
 A promissory note and mortgage securing it require alike a stamp tax. A 
 memorandum on back of a deed or mortgage noting date of filing and of 
 record does not require a stamp. A release, executed, sealed, and delivered, 
 or a mortgage, is equivalent to a conveyance, and taxable according to the 
 value of interests released or conveyed. A power of attorney, authorizing the 
 entry of satisfaction of mortgage, is taxable. A separate instrument depos- 
 ited as security to a trustee for redemption of obligations is a taxable memo- 
 randum under paragraph relating to mortgage or pledge, page 16 of war-rev- 
 enue act. Papers placed in the hands of others than primary holders, con- 
 taining formal assignments, require stamp tax. A pledge given as security 
 on a mortgage, and a power of attorney authorizing an assignment, require a 
 stamp, but not a transfer until actually made. (T. D. 19701; July 15, 1898.) 
 
 Requirements relating to the various instruments and documents used in the 
 transactions of the Chicago Eeal Estate Board. (T. D. 19742; July 20, 1898.) 
 Assignment tax: 
 
 Assignments of trust deeds require the same rate of stamp duty as the original 
 instrument. No stamp is required upon the assignment of a promissory note. 
 (T. D. 19680; July 12, 1898.) 
 
 A taxable mortgage must exceed in value $1,000 when it becomes taxable at the 
 same rate as a promissory note. (T. D. 19697; July 14, 1898.) 
 Chattel-mortgage tax: 
 
 Chattel mortgages and a mortgage on realty bear the same rate of taxation, and 
 every assignment or transfer of a mortgage, or the renewal or continuance of 
 any agreement or contract, by letter or otherwise, requires the same stamp as 
 the original instrument. (T. D. 19679; July 12, 1898.) 
 Mortgages, collaterals, pledges. 
 Attorney-General's opinion: 
 
 Attorney-General's opinion, dated March 20, 1900, relative to the pledging of 
 collateral securities and the instruments used therein, addressed to the Secre- 
 tary of the Treasury. (T. D. 80; March 21, 1900. ) 
 
 Internal-revenue circular No. 560, setting forth rulings with regard to internal- 
 revenue taxation on loans secured by pledges of collateral under Schedule A, 
 act of June 13, 1898, in conformity with opinion of Attorney-General. (T. D. 
 83; March 29, 1900.) 
 
 The tax on an assignment of a mortgage is reckoned upon the amount secured 
 by the assignment at the time it is executed. (T. D. 84; March 30, 1900. ) 
 Tax accrues on assignments of mortgage: 
 
 A tax accrues on every assignment of a mortgage based upon the amount of 
 money remaining secured thereby; on a lease based upon the unexpired term; 
 on a policy of life insurance based upon the amount of insurance remaining in 
 force under the assignment; on a fire, marine, and casualty insurance policy 
 based upon the unearned premium. (T. D. 243; November 13, 1900.) 
 Mortgage — Legacy taxation. 
 
 Mortgage indebtedness on real estate is held to be not a proper charge against 
 the personal estate as regards the liability of the estate to legacy tax. (T. D. 
 449; December 16, 1901.) 
 
134 
 
 Mortgage — Legacy taxation — Continued. 
 Date and delivery of mortgage: 
 Aa to whether a mortgage dated in June, but not recorded until after July 1, 
 1901, is subject to stamp tax, it is held that the date of recording a mort- 
 gage does not decide the question of its taxability. A mortgage as between 
 the parties takes effect from the date of its delivery to the mortgagee, or his 
 agent, at which time it is issued, and the stamp tax accrues under the law. 
 The date of a mortgage will be assumed to be the date of delivery, unless the 
 contrary is proved. (T. D. 362; June 19, 1901. ) 
 
 K". 
 
 Notice of seizure. 
 
 In order to obviate all grounds of complaint under section 3460, Revised Stat- 
 utes, relating to published notice of the seizure of spirits, owing to failure of 
 claimants to give the requisite bond, collectors are directed to furnish a copy 
 of the first advertisement to the shipper, if he is known, or to his attorney, 
 who may have been in correspondence with the collector in regard, to the 
 seizure. (T. D. 585; September 30, 1902.) 
 
 o. 
 
 Occupations subject to tax. 
 
 The schedule of articles and occupations subject to tax under the war-revenue 
 law and in force on and after July 1, 1902, is announced by the Commissioner 
 of Internal Revenue. (T. D. 537; June 19, 1902.) 
 
 Official records. 
 
 Disclosures by collectors: 
 Where requests are made for disclosures of information contained in official 
 records of internal-revenue taxes and taxpayers, collectors are instructed that 
 they should under no circumstances whatever comply with such request until 
 they shall have communicated with the Commissioner of Internal Revenue 
 and receive instructions concerning the same, except where the request is 
 from the Secretary of the Treasury, in which case the request will be complied 
 with at once without communicating with the Commissioner of Internal Rev- 
 enue. (See Int. Rev. circular. No. 583.) (T. D. 226; October 10, 1900.) 
 Official information confidential: 
 Data from the returns made by a distiller are not required to be furnished for 
 
 use of private litigants in a State court. (T. D. 224; October 8, 1900. ) 
 It is held that information secured through officers and employees of the Inter- 
 nal Revenue Service must be regarded as in the strictest confidence, and that 
 any person imparting such information to unauthorized persons is guilty of a 
 gross breach of official confidence justifying immediate dismissal from office. 
 (See Int. Rev. circular, No. 574.) (T. D. 141; June 2, 1900.) 
 
 Privacy of official records: 
 Regulations made by the Commissioner of Internal Revenue, prohibiting col- 
 lectors from giving out records or copies thereof to private persons or to local 
 officers, or to produce such records, or copies thereof, in a State court, are sus- 
 tained by the opinion of the United States Supreme Court in the case of John 
 T. Boske, sheriff of Kenton County, Kentucky, appellant, v. David IS!. Comin- 
 gore, collector for the sixth collection district in Kentucky. (T. D. 104; April 
 
 20, 1900. ) ,: '->'" 
 
 [■ .i Ml ■<■ 
 
135 
 
 Official records — Continued. 
 Testimony as to contents prohibited to collectors and deputies: 
 
 Referring to section 251, Revised Statutes, under date of April 15, 1898, the Dis- 
 trict Court of the United States in re Lamberton v. Habeas Corpus, at Fort 
 Smith, Ark., quotes regulations made by the Commissioner of Internal Reve- 
 nue and approved by the Secretary of the Treasury, showing that "all records 
 in the offices of collectors of internal revenue or of any of their deputies are in 
 their custody and control for purposes relating to the collection of the revenues 
 of the United States only. They have no control of them and no discretion 
 with regard to permitting the use of them for any other purpose. Collectors 
 are hereby prohibited from giving out any special-tax records or any copies 
 thereof to private persons or to local officers, or to produce such records or 
 copies thereof in a State court, whether in answer to subpoenaes duces tecum or 
 otherwise." (T. D. 689; August 8, 1903.) 
 Oil refineries. 
 Oil refiner defined: 
 
 As to what constitutes a refiner of oil within the meaning of section 27, war- 
 revenue act, imposing a tax upon "every person, firm, corporation, or 
 company carrying on or doing the business of refining oil." (T. D. 20002; 
 September 3, 1898. ) 
 
 Returns of gross receipts of oil refineries, under section 27, act of June 13, 1898, 
 to be made for period ending June 30, and for each monthly period thereafter. 
 Tax on such gross receipts accruing each month assessable under section 31 of 
 that act. (T. D. 2003; September 7, 1898.) 
 Oleomargarine — Special tax. 
 Abstracts of sales: 
 
 Collectors are directed, upon the receipt of an abstract of sales of oleomargarine, 
 to promptly cause sufficient investigation to be made for the purpose of deter- 
 mining the liability of the persons named therein to the special tax, and of 
 marking each sale accordingly. The separate sheets of each abstract must be 
 fastened together, and, after correction, returned to the Commissioner. (T. D. 
 562; August 2, 1902.) 
 Accounts to be separately kept: 
 
 Manufacturers who produce and dispose of, and wholesale dealers disposing of, 
 two or more classes of oleomargarine shall be required to keep their accounts 
 for one class of product separate and distinct from accounts kept for another 
 class, such as oleomargarine tax paid at 2 cents per pound removed from 
 factory prior to July 1, 1902, oleomargarine tax paid at one-fourth of 1 cent 
 per pound, and oleomargarine taxable at 10 cents per pound. (T. D. 558; July 
 23^1902.) 
 
 Oleomargarine artifically colored by annotto or other coloring matter is subject 
 to tax at 10 cents per pound. (T. D. 535; June 14, 1902.) 
 
 Act of May 9, 1902: 
 
 The act of May 9, 1902, provides for a tax of 10 cents per pound upon oleomar- 
 garine which shall be manufactured and sold, or removed for consumption or 
 use, containing artificial coloration that causes it to look like butter of any 
 shade of yellow, and a tax of one-fourth of 1 cent per pound when free from 
 such artificial coloration, on and after July 1, 1902, the date when the act is to 
 take effect. (T. D. 520; May 13, 1902. ) 
 
 A special-tax stamp as W. D. O. free from artificial coloring under which sales 
 have been made can not be redeemed unless a special-tax stamp at the rate of 
 $480 per year is procured for the period from the beginning of the month in 
 which the first sale of uncolored oleomargarine was made to the close of the 
 fiscal year. (T. D. 612; December 29, 1902. ) 
 
136 
 
 Oleomargarine — Special tax — Continued. 
 
 Army-post exchanges: 
 The decision of the Court of Claims in the case of Thomas B. Dugan v. United 
 States (No. 21285 in Treasury Decisions, 1899), sustaining the ruling of this 
 office that post exchanges under the complete control of the' Secretary of War 
 as governmental agencies are not subject to special tax as retail liquor dealers, 
 applies equally to these post exchanges with reference to their transactions in 
 oleomargarine. (T. D. 632; March 4, 1903.) 
 
 Artificial coloration: 
 If a wholesale dealer handles oleomargarine free from artificial coloration that 
 causes it to look like butter of any shade of yellow, then he is protected by 
 his special-tax stamp taken out at the rate of $200 per annum. If, however, 
 the oleomargarine he sells, although it may have been taxpaid by the manu- 
 facturer at the rate of one-fourth of 1 cent per pound, is not free from artificial 
 coloration that causes it to look like butter of any shade of yellow he will be 
 required to pay at the rate of $480 per year. (T. D. 608; December 20, 1902.) 
 
 Artificially colored oleomargarine: 
 If a. manufacturer taxpays artificially colored oleomargarine that looks like but- 
 ter of any shade of yellow at the rate of one-fourth of 1 cent per pound, this 
 is no protection to the wholesale dealer who holds a $200 special-tax stamp, 
 for such manufacturer not only becomes liable to the Government for the 
 higher rate of tax, but the wholesale dealer also for the special tax at the 
 higher rate, although he may have been absolutely ignorant of the deception 
 practiced upon him by the manufacturer. (T. D. 608; December 20, 1902.) 
 
 Change of stamp from retail to wholesale dealer: 
 If, on July 1, 1902, a wholesale or a retail dealer in oleomargarine should take 
 out a special-tax stamp for the sale of only the "un colored product," and 
 later should find that it would be to his advantage to sell colored oleomar- 
 garine, he could do so by the payment of the additional amount necessary. 
 (T. D. 526; May 26, 1902.) 
 
 Cold-storage warehouses: 
 Where warehouses for cold storage of oleomargarine are merely places of storage, 
 and not places where customers leave their orders, special tax is not required 
 to be paid therefor, nor special-stamp tax required to be posted up therein. , 
 (T. D. 709; October 6, 1903.) 
 
 Compliance with rnle 22: 
 The Commissioner, addressing a dealer in ' oleomargarine, advises that all the 
 dealers need to do is to call upon the supply factories for the product to be 
 packed in a form to suit their trade and their customers." You will have no 
 difficulty whatever in obtaining renovated butter in a great varietj' of shape 
 and size of package, so as to be able to fully satisfy the demands of your cus- 
 tomers. The simplest, safest, and most economical course for you to pursue, 
 therefore, is to order renovated butter from the factory supplying you in such 
 shape as will meet the wants of your trade, and enable you to sell it and ship 
 it in exactly the condition in which it is received. In this way rule 22 and 
 all other existing regulations may be fully complied with as well as the 
 interests and convenience of all .concerned. (T. D. 654; April 15, 1903.) 
 
 Designation of consignees'. 
 In case of designation by a manufacturer or wholesale dealer of the consignees, 
 reported on Form 216 or 217, the collector should indicate by a check or other 
 mark that he has verified such markings of the consignees in his district 
 before transmitting the report to the Commissioner of Internal Eevenue. 
 (T. D. 613; January 12, 1903.) 
 
137 
 
 Oleomargarine— Special tax— Continued. 
 Enforcement of regulations as to marking: 
 
 Prosecutions or other action for the enforcement of the regulations prescribed 
 by the Secretary of Agriculture relating to the proper stamping and marking 
 of renovated butter are under the authority of that officer, and internal-rev- 
 enue officers are not responsible therefor, inasmuch as the Bureau of Internal 
 Eevenue lacks lawful power with respect to violations of said regulations. 
 (T. D. 641; March 17, 1903.) 
 Exportations free: 
 
 The obligations of a retail dealer in eleomargarine are stated in opinion delivered 
 by the United States district court for the eastern district of Pennsylvania. 
 The primary object of the oleomargarine law is to raise revenue, and the law 
 is constitutional. Decision in the case of the United States v. Daniel B. 
 Dougherty. (T. D. 127; May 14, 1900.) 
 
 Upon oleomargarine of the manufacture of the United States once exported free 
 of tax, and afterwards returned from the foreign port to the United States, 
 there shall be paid a duty equal to the internal-revenue tax imposed upon 
 oleomargarine of the class to which such returned goods properly belong. 
 (T. D. 669; June 16, 1903.) 
 Exportation of adulterated butter: 
 
 The requirements of the fourth section of the act of May 9, 1902, are so explicit in 
 regard to the manufacture and exportation of "adulterated butter" that the 
 Commissioner of Internal Eevenue is unable to see his way clear for the formu- 
 lation of regulations governing the exportation of adulterated butter which 
 shall not require the branding of the words "adulterated butter" on packages 
 for export, or the affixing of the label above quoted, in which the words again 
 appear. (T. D. 532; June 6, 1902.) 
 Inner packages: 
 
 A tin container having the word ' ' Oleomargarine ' ' printed on the top of the can 
 in a circle in letters one-half inch square, used in conjunction with the name 
 on the inside of the inner package, would meet the requirement of the regula- 
 tions for packing oleomargarine for the purposes of exportation. Under the 
 regulations the marking must be in durable ink, or lithographed, or impressed 
 in the tin in such » manner as to prevent its obliteration, and containing not 
 less than 10 pounds. (T. D. 604; December 15, 1902.) 
 Instructions as to devices: 
 
 By reference to Paragraph III, page 26, regulations No. 9, revised June, 1902, 
 there will be noted the following: "Manufacturers will be permitted to impress 
 upon their rolls, prints, or bricks marks or embellishments in the way of a 
 finish for the same, without the word "oleomargarine" appearing thereon, 
 provided said marks or embellishments are first presented in duplicate photo- 
 graphic copies, serially numbered, to this office for approval." (T. D. 628; 
 February 14, 1903. ) 
 Instructions to manufacturers: 
 
 Instructions to manufacturers of oleomargarine are applicable only in reporting 
 oleomargarine tax paid prior to July 1, 1902, at the rate of 2 cents a pound, 
 and how to indieate whether the product is artificially colored. (T. D. .) 
 
 Intent of act of May 9, 1902: 
 
 It is not the intent of the act of May 9, 1902, to require'the payment of higher 
 rates of special taxes when no other oleomargarine was sold except that 
 described in the act as "free from artificial coloration that causes it to look 
 like butter of any shade of yellow." (T. D. .586; October 1, 1902.) 
 
 Oleomargarine monthly reports, correcting Forms 499 and 515, should be so pre- 
 
133 
 
 Oleomargarine — Special tax — Continued. 
 
 Intent of act of May 9, 1902— Continued. 
 
 pared that, in all instances, only the actual and not the estimated weights be 
 given. Any fractional part of a pound in a package shall be taxed as a pound. 
 (T. D. 606; December 15, 1902.) 
 
 Invastigation as to liability to special tax: 
 Collectors, upon receiving an abstract of sales of oleomargarine, are required to 
 cause a sufficient investigation to be made, to determine the liability of the 
 persons named therein to special tax, and to mark each sale accordingly— the 
 investigation to be as promptly made as possible. (T. D. 562; August 2, 
 1902.) 
 
 Manufacturers' returns: 
 The time in which returns of manufacturers of and wholesale dealers in oleo- 
 margarine shall be made to collectors is extended from five days to ten days 
 after the first day of the month, covering the transactions of the preceding 
 month. (T. D. 281; February 15, 1901.) 
 
 Marking, stamping, and branding packages: 
 Under the sixth section of the act of August 2, 1886, the marking, stamping, and 
 branding of packages of oleomargarine must be regarded as "means to effect 
 the objects of the act in respect of revenue," the United States circuit court of 
 appeals for the third district holding that where an "indictment charges that 
 the defendant named therein, unlawfully packed, unlawfully sold, and unlaw- 
 fully delivered oleomargarine, if any of the counts in such a case be sufficient 
 to support the judgment of the lower court, the same must be affirmed, whether 
 the defendant be a wholesale or a retail dealer." (T. D. 335; April 27, 1901.) 
 
 Marking wrappers — Modification: 
 Seizures of oleomargarine under authority of letter, dated January 22, 1903, for 
 omissions by manufacturers of the word "Oleomargarine" from wrappers, 
 covering the same, were ordered released to save losses to uninformed manu- 
 facturers, and it is ordered that no seizures for noncompliance be made before 
 March 1, 1903, unless the tax-paid stamps were issued subsequent to February 
 10, 1903. (T. D. 626; February 10, 1903.) 
 
 Oleomargarine, colored and uncolored: 
 Where a person after July 1, 1902, pays special tax as a dealer in uncolored oleo- 
 margarine and thereafter desires to sell also colored oleomargarine, the only 
 course for him to pursue is to pay the special tax at the higher rate for the 
 entire period to the close of the year, and take out the requisite special-stamp 
 tax, and then send in. for redemption the special-tax stamp taken out at the 
 lower rate. (T. D. 526; May 21, 1902.) 
 
 Oleomargarine peddled on streets taxable: 
 Oleomargarine can not be peddled on the streets without involving the peddler 
 in special-tax liability, as a dealer, at each place at which he sells the product. 
 (T. D. 610; December 23, 1902.) 
 
 Orders for original manufacturer's packages: 
 Where a person, though not otherwise a dealer in oleomargarine, at the request 
 of another, orders original manufacturer's packages of oleomargarine, and the 
 manufacturer ships the packages to him and charges them to him, and looks 
 to him only for pay therefor, and he receives these packages and delivers them 
 to the person at whose request he sent such orders, collecting of the latter the 
 purchase money, he must be regarded as having bought the oleomargarine on 
 his own account and as having sold it, and, therefore, must be regarded as a 
 wholesale dealer in oleomargarine and required to pay special tax accordingly, 
 even though he show that he acted solely for the accommodation of the person 
 
139 
 
 Oleomargarine— Special tax— Continued. 
 
 Orders for original manufacturer's packages — Continued. 
 
 to whom the oleomargarine was delivered by him, and that he derived no 
 profit therefrom. (T. D. 2; December 29, 1900.) 
 
 Where a retail dealer sells and delivers upon one order two packages of oleomar- 
 garine, each containing 10 pounds, of the same grade and at the same price, 
 he sells 20 pounds of oleomargarine in contravention of the law, which dis- 
 tinctly limits him to the sale of " quantities not exceeding ten pounds" (section 
 6, act of August 2, 1886). (T. D. 105; April 23, 1900.) 
 
 Where manufacturers ship stamped packages of oleomargarine on orders of 
 customers and do not take the waybills from the common carrier to these 
 customers nor to their use, but simply to their own agent who receives and 
 delivers the packages to the persons whose names are found thereon, the 
 manufacturers involve themselves in special-tax liability as wholesale dealers 
 at the place where their agent makes these deliveries. (T. D. 106; April 23, 
 1900. ) 
 
 Original stamped packages: 
 
 A bill of sale of an original stamped package of oleomargarine, containing a 
 description of the package and the name of the purchaser, and executed at 
 the factory by the manufacturers, and sent from there to the purchaser, com- 
 pletes the sale and constructive delivery of the oleomargarine at the factory, 
 and the subsequent actual delivery of the package elsewhere to the purchaser 
 does not necessitate the payment of special tax at the latter place. (T. D. 160; 
 June 18, 1900. ) 
 
 Where original stamped packages of oleomargarine are set apart at the factory of 
 the manufacturer (or at the place of business of a wholesale dealer under his 
 special-tax stamp) as the property of persons whose orders therefor have been 
 received, they may be consigned to agents of the manufacturer (or wholesale 
 dealer) for delivery and for collection of the purchase money due thereon 
 without special-tax liability on the part of either of these agents or the manu- 
 facturer or wholesale dealer, provided that in the bill of lading and in the 
 waybill of the common carrier it is explicitly set forth that these packages of 
 oleomargarine are consigned to the agents for the use of the owners thereof 
 whose names are given therein. (T. D. 152; June' 7, 1900.) 
 Packages in retail quantities: 
 
 Eetail dealers in oleomargarine may, in advance of sales, make up packages in 
 retail quantities, mark and brand the same, and place them in or on the orig- 
 inal stamped packages for retail. Illegible or concealed marks are not those 
 required by law. Retail dealers must comply strictly with regulations to avoid 
 penalties. (T. D. 441; December 4, 1901.) 
 Preparation of collectors' reports: 
 
 Collectors should exercise particular care at all times in preparing their reports 
 on Form 500 for dealers in oleomargarine taxed at one-fourth of 1 cent per 
 pound exclusively; Form 501 for oleomargarine taxed at 10 cents per pound, 
 and Form 502 for adulterated butter as outlined in regulations No. 9. Under 
 no circumstances should dealers in one class of product be reported on forms 
 designed for the reporting of another class of product. (T. D. 551; July 14, 
 1902. ) 
 Products subject to State tax laws: 
 
 The act of May 9, 1902, going into effect July 1, 1902, renders oleomargarine and 
 other imitation dairy products subject to the laws of any State or Territory, or 
 the District of Columbia, into which they are transported, under the law 
 imposing a tax upon and regulating the manufacture, sale, importation and 
 exportation of oleomargarine. (T. D. 533; June 11, 1902.) 
 
140 
 
 Oleomargarine — Special tax — Continued. 
 Redemption of special-tax stamp: 
 
 In case a party procures a special-tax stamp as W. D. O. free from artificial col- 
 oring and afterwards, during the same month, purchases a special-tax stamp 
 as W. D. O. at the rate of $480 per annum, the special-tax stamp as W. D. 0. 
 free from artificial coloring may be redeemed upon application being made 
 therefor on Form 38, provided that he can show that he did business in but 
 one place; or if he so desired, he could in any subsequent month make appli- 
 cation for and procure a special-tax stamp as W. D. 0. at the rate of $480 per 
 year from the beginning of the month in which he first sold oleomargarine 
 free from artificial coloring, and then make a claim for the redemption of the 
 special-tax stamp as W. D. O. free from artificial coloring. (T. D. 612; Decem- 
 ber 29, 1902. ) 
 
 The act approved May 9, 1902, makes no provision for imposing an additional 
 tax on stock on hand, but provides for two grades of wholesale and retail 
 dealers in oleomargarine. Wholesale and retail dealers pay $480 and $48 per 
 annum, respectively. Payment of these special taxes permits the sale of col- 
 ored or uncolored oleomargarine, or both. Wholesale dealers in oleomarga- 
 rine who sell only the uncolored product taxed at the rate of one-fourth of 1 
 cent per pound will pay special tax at the rate of $200 per annum, and retail 
 dealers who sell only the uncolored product pay at the rate of $6 per annum. 
 (T. D. 520; May 13, 1902.) 
 Reports under Act of May 9, 1902: 
 
 Collectors are advised that, under the act of May 9, 1902, in making their 
 monthly report showing the names of persons who have qualified as dealers 
 in oleomargarine taxable at the one-fourth cent per pound and 10 cents per 
 pound, respectively, they should file two reports, one showing the number of 
 persons who pay special tax to vend the product which pays the lower rate of 
 tax, and the other showing the names of persons who have qualified as deal-" 
 ers in the product taxable at the rate of 10 cents per pound. (T. D. 553; July 
 16, 1902. ) 
 Retail dealers' packages: 
 
 Retail dealers must sell oleomargarine only from original stamped packages in 
 quantities not exceeding 10 pounds. (T. D. 698; September 16, 1903.) 
 Returns must be signed and sworn to: 
 
 Hereafter collectors will refuse to accept returns from manufacturers of or whole- 
 sale dealers in oleomargarine which are not signed and sworn to as herein 
 required, beginning with returns for the month of January, 1901.' Any regu- 
 lations or instructions in conflict with the foregoing are hereby rescinded. 
 (T. D. 264; January 11, 1901.) 
 Sales by wholesale dealers: 
 
 Manufacturers and wholesale dealers in oleomargarine can sell only in original 
 packages at the place for which they have paid special tax and hold special- 
 tax stamps. Deliveries by agents permissible only as provided in Treasury 
 decision 152. When ownership is not absolutely relinquished and delivery is 
 made only C. O. D., liability to special tax as wholesale dealer in oleomarga- 
 rine is incurred at each place where such deliveries are made. (T. D. 485; 
 March 14, 1902.) 
 
 The sale of oleomargarine on and after July 1, 1902, that has paid a tax at any 
 rate other than one-fourth of 1 cent per pound, creates liability to special taxes 
 at the higher rate, without reference to the question of coloration of the oleo- 
 margarine. (T. D. 568; August 20, 1902.) 
 
141 
 
 Oleomargarine— Special tax— Continued. 
 Sales for ship stores: 
 Sales of oleomargarine for "ship stores" to vessels in ports of this country sail- 
 ing for foreign ports can not be made free of tax as for export, but must be 
 tax paid and stamped as are goods for domestic use. (T. D. 657; April 23, 
 1903.) 
 
 Sales for ships' stores: 
 Section 16, act of August 12, 1886, as affecting the sales of oleomargarine for ships' 
 stores, is construed to mean that to export oleomargarine free of tax both the 
 constructive and the actual delivery of the goods must be made in a foreign 
 land. Such would not be the case where the sales and deliveries are made to 
 vessels in ports of this country, although sailing for foreign ports, and there- 
 fore the product must be taxed as for domestic use. ( T. D. 657 ; April 23, 1903. ) 
 Sales made at place of manufacture or elsewhere: 
 Under their special-tax stamp as manufacturers of renovated butter, manufac- 
 turers are permitted to sell the renovated butter made by them at the place of 
 manufacture, or elsewhere, without the payment of any additional special tax 
 for such sales. (T. D. 530; June 2, 1902.) 
 Sales to successors: 
 A merchant and retail dealer in oleomargarine who sells his stock of goods, 
 including oleomargarine, to his successor in business, is not required to pay 
 special tax on this account as a wholesale dealer in oleomargarine. A sheriff 
 who levies upon and sells oleomargarine is not required to pay special tax. 
 (T. D. 730;. December 18, 1903.) 
 Sample of cocoanut oil not taxable:. 
 A fat called " Ko-nut," composed entirely of cocoanut oil or fat, without a mix- 
 ture of other substances, and without any addition of butter, is not considered 
 oleomargarine and is not subject to tax. (T. JD. 277; February 12, 1901.) 
 A sample of cocoanut oil and other ingredients, containing no butter, and which 
 has not been churned with milk or cream, the analysis of which appears to 
 confirm the statement of the manufacturers that it was a mixture of Ko-nut (a 
 refined cocoanut oil) and beef fat, " the admixture to Ko-nut being to give it 
 the kneadable and plastic character so typical of lard and entirely lacking in 
 cocoanut oil, " the sample being put up in imitation of lard and not of butter, 
 held not subject to tax as oleomargarine. (T. D. 344; May 11, 1901. ) 
 Separate stalls require separate stamps: 
 Where a retail dealer in oleomargarine carries on business at two or more stalls 
 in a market building at the same time, he is required to take out and post up 
 a separate special-tax stamp at each stall; but where he conducts this business 
 at separate stalls, on different days of the week, one special-tax stamp, taken 
 out by him for the market building, is sufficient, when posted up at the stall 
 where he is retailing oleomargarine. (T. D. 346; May 18, 1901.) 
 Shipping manufacturers' original packages: 
 Oleomagarine tax paid at 2 cents per pound sold by wholesale dealers before 
 June 30, and returned after July 1, can not be resold without involving whole- 
 sale dealer in liability to special tax as dealer in oleomargarine taxed at 10 
 cents per pound. (T. D. 560; July 29, 1902. ) 
 The payment of special tax as wholesale or retail dealer in oleomargarine covers 
 sales of oleomargarine only. If adulterated butter is sold, payment of special 
 tax as wholesale or retail dealer in adulterated butter is required, as the two 
 businesses are separate and distinct. (T. D. 530; June 2, 1902.) 
 The shipping of manufacturers' original packages in boxes or barrels or wrapped 
 in jute bags, burlap, or heavy paper is permitted for the purpose only of pro- 
 
142 
 
 Oleomargarine — Special tax — Continued. 
 
 Shipping manufacturers' original packages — Continued. 
 
 tecting such packages and contents from injury while in transit, provided that 
 the words "Oleomargarine" or "Renovated butter," as the case may be, are 
 plainly marked or stenciled on the outside of such wrapper or covering, said 
 coverings to be removed after packages reach their destination. (T. D. 587; 
 October 6, 1902. ) 
 Three classes of products require separate returns: 
 
 If the reports from wholesale' dealers in oleomargarine, on Form 217, cover 
 transactions in the three classes of the product, separate returns must be made 
 of each by wholesale dealers, and the distinctive word or words "taxable at 10 
 cents per pound," "taxable at } cent per pound," or "oleomargarine tax paid 
 at; 2 cents per pound, ' ' inserted in red ink at the top of the first page, on outside 
 fold and recapitulation. A revised Form 217 was prepared for publication and 
 use by collectors upon requisition. (T. D. 567; August 18, 1902.) 
 "When tax payable at place of delivery: 
 
 Palm oil used for the purpose of producing or imparting a yellow color to the 
 oleomargarine subjects the product so colored to a tax of 10 cents per pound. 
 Oleomargarine so colored is not free from artificial coloration. (T. D. 564; 
 August 11, 1902.) 
 
 Where a manufacturer or wholesale dealer in oleomargarine receives an order 
 from a purchaser for original stamped packages of oleomargarine in "1,000- 
 pound lots, ' ' the packages must be set apart at the factory or at the place of 
 business of the wholesale dealer and shipped in such a manner as to entitle 
 the purchaser to the ownership and receipt of the packages as his own prop- 
 erty absolutely and unconditionally. If this is not done, and theagent of the 
 manufacturer or wholesale dealer upon the arrival of the packages at their 
 destination withholds them, or any part of them, from the purchaser until the 
 latter pays for them and only then makes delivery, the salesareto be regarded 
 as completed at the place of such delivery, and special tax is required to be 
 paid therefor at that place. (T. D. 499; April 12, 1902.) 
 Oleomargarine circular letters. 
 Devices or designs not sanctioned: 
 
 In pursuance of paragraph 3 of "Regulations 9," revised June, 1902, collectors 
 of internal revenue and others interested are informed that this office will not 
 sanction any device or design on bricks, prints, or rolls of oleomargarine in 
 which appear a clover leaf, sheaf of wheat, a bell, or any word or letter for 
 embellishment or finish, unless the word "oleomargarine" is impressed on 
 ' the same surface with the device, as required by the regulations. (T. D. 628; 
 February 14, 1903. ) 
 Oleomargarine — Consignees : 
 
 The Commissioner advises that collectors of districts wherein manufacturers of 
 or wholesale dealers in oleomargarine are located are required to mark in 
 the column headed "Designation," on inside pages of reports on Forms 216 
 and 217, respectively, against the name of consignees in their district, the 
 letter "D" for dealer and "C" for consumer, as the case maybe, before 
 forwarding the reports to the Commissioner of Internal Revenue. (T. D. 613; 
 January 12, 1903. ) 
 
 Oleomargarine Forms 500 and 502 : 
 
 Circular to collectors setting forth instructions supplementing Treasury decision 
 668, regarding the preparation of Forms 500 and 502, showing the names of 
 persons who have paid special tax as dealers in oleomargarine. (T. D. 672; 
 June 26, 1903.) 
 
143 
 
 Oleomargarine circular letters— Continued. 
 Oleomargarine Forms 500 and 502— Continued. 
 
 Collectors are directed that, in future, when preparing reports on Forms 500 and 
 502, they must cause to be entered the dates at the beginning and ending of 
 the period covered by the payment of the tax, as, for instance, July 1, 1903, 
 to June 30, 1904, or twelve months from July 1, 1903. (T. D. 684; July 22, 
 1903.) 
 
 Instructions are issued to collectors concerning the preparation of Forms 500 and 
 502, showing payment of special tax as wholesale and retail dealers in oleo- 
 margarine taxed at the rate of one-fourth cent and 10 cents per pound, respec- 
 tively. (See also T. D. 672.) (T. D. 668; June 11, 1903.) 
 Oleomargarine — Instructions as to imprinting: 
 
 Collectors are required to see that manufacturers of oleomargarine in their 
 respective districts are complying with paragraphs 1, 2, 3, and 4 of regulations 
 No. 9, relative to imprinting upon bricks, prints, or rolls of oleomargarine. 
 The regulations were formulated by authority of section 20, act of August 2, 
 1886, and oleomargarine found on the market with prints or devices which do 
 not conform thereto is liable to seizure and forfeiture. Collectors are expected 
 to enforce the regulations in respect to the matter referred to, and seizure 
 should be made of all packages offered for sale bearing devices not sanctioned 
 by the regulations. (T. D. 622; January 21, 1903.) 
 
 Internal-revenue circular No. 629, addressed to collectors and revenue agents, 
 sets forth regulations as to tests for determining the presence of artificial 
 coloring matter in oleomargarine. (T. D. 547; July 9, 1902.) 
 Oleomargarine shipments : 
 
 The Commissioner holds now, as heretofore, that in reporting a shipment of 
 oleomargarine by a manufacturer to a third party, upon the order of a whole- 
 sale dealer, the manufacturer should enter on book Form 60 and report Form 
 216 the name and address of the actual consignee; also a memorandum to the 
 effect that it is sent upon the order of a wholesale dealer, naming the dealer. 
 (T. D. 679; July 14, 1903.) 
 Oleomargarine sold before July 1, 1902: 
 
 Circular letter is sent to collectors containing instructions relative to abstract of 
 sales of oleomargarine, Office Form 263. (T. D. 562; August 2, 1902.) 
 
 Collectors are instructed in circular letter that when it is conclusively shown that 
 the oleomargarine tax paid prior to July 1, 1902, was free from artificial color- 
 ation, even though it be sold subsequent to that date, the payment of the les- 
 ser rates of special taxes will suffice, provided the dealer has sold none of that 
 article which had been artificially colored. Anything inconsistent with this 
 ruling contained in circular letter dated July 16, 1902 (Mim. No. 269), is 
 hereby rescinded. (T. D. 586; October 1, 1902.) 
 
 Collectors are instructed by circular that in investigations of the oleomargarine 
 industry it has beero found very important to have data furnished that would 
 definitely locate all purchasers, and for that reason manufacturers and whole- 
 sale dealers were required by the regulations to give in their reports of sales 
 such information as would meet the needs of the office. (T. D. 605; December 
 15, 1902.) 
 
 Extracts from the act of August 2, 1886, as amended by the act of May 9, 1902, 
 and from regulations No. 9, as to retail dealers in oleomargarine. (See circu- 
 lar No. 414, revised, December 3, 1902.) (T. D. 600; December 3, 1902.) 
 
 The Commissioner issues circular letter to collectors advising them of his opinion 
 that, after a careful examination of the law, there is no specific provision that 
 
144 
 
 Oleomargarine circular letters — Continued. 
 Oleomargarine sold before July 1, 1902 — Continued. 
 
 permits the peddling of oleomargarine. It can not be done without involving 
 the peddler in a special liability as a dealer in oleomargarine at each place at 
 which he sells his product, (f . U. 610; December 23, 1902.) 
 Reporting receipts of oleomargarine packages: 
 
 Collectors are instructed that wholesale dealers in reporting on their monthly- 
 Form 217, sample packages of oleomargarine should show, under the heading 
 "Statement of quantity received during the month," such packages in a sepa- 
 rate entry, and such entries should appear on the page devoted to receipts 
 in the same manner as any other shipment. Care should be taken in making 
 reports of such receipts, so that the nature of the same may be clearly set forth. 
 (T. D. 649; April 6, 1903.) 
 Reports of collectors: 
 
 Collectors are advised to forward reports needed in the preparation of office 
 records without delay the information contained in the following forms, viz: 
 Form 500, for dealers in oleomargarine taxed at one-fourth cent per pound; 
 Form 501, for dealers in oleomargarine taxed at 10 cents per pound; Form 
 502, for dealers in adulterated butter. Particular care should be used at all 
 times in preparing these reports. Under no circumstances should dealers in 
 one class of product be reported on forms designed for reporting another class 
 of product. (T. D. 551; July 14, 1902.) 
 Seizures — Marking wrappers: 
 
 The Commissioner instructs collectors that, in order to avoid imposing loss upon 
 manufacturers and dealers in oleomargarine, no seizures for noncompliance 
 with the requirements of circular letter as to the marking of wrappers, dated 
 January 22, 1 903, shall be made before March 1, 1903, unless the tax-paid stamps 
 thereon were issued subsequent to February 10, 1903. (T. D. 626; February 
 10, 1903.) 
 
 [See Decisions (Special Tax Decisions) Nos. 105, 106, 152, 160.] 
 
 Instructions in revenue circular No. 551, are superseded by circular No. 564, 
 as to marking, branding, and stamping packages of oleomargarine. (T. D. 31; 
 February 1, 1900.) 
 
 Instructions are given to collectors, amending circular 551, by the issuance of 
 internal-revenue circular No. 564, as to marking, branding, and stamping 
 packages of oleomargarine. (T. D. 108; April 19, 1900.) 
 
 Regulations, No. 9, revised January, 1900 (Supplement No. 1), governing the 
 marking and branding of packages of oleomargarine for export, are issued by 
 the Commissioner. (T. D. 211; September 11, 1900.) 
 
 Instructions (Int. Rev. circular No. 586) as to the use of microscopes by internal- 
 revenue collectors, etc., for the detection of oleomargarine, are forwarded to 
 collectors. (T. D. 256; December 11, 1900.) 
 
 Opinions of Attorney-General. 
 
 Cigars imported from Philippine Islands : 
 Opinion of the Attorney-General that no internal-revenue tax is imposed, under 
 the laws of the United States, on cigars shipped from the Philippine Islands 
 to this country. Goods brought from the Philippine Islands not imported 
 from a foreign country, within the meaning of the revenue laws. The provi- 
 sions of section 3418, Revised Statutes, inoperative in the Philippines since the 
 Philippine act of July 1, 1902. The provisions of section 3394, Revised Stat- 
 utes, apply only to cigars manufactured within the bounds of the internal- 
 revenue laws. (T. D. 581; September 17, 1902.) 
 
145 
 
 Opinions of Attorney-General— Continued. 
 Contingent interests — Legacy tax : 
 Contingent interests not vested prior to July 1, 1902, are not subject to legacy- 
 tax under section 3, act of June 27, 1902. Congress did not intend to make 
 any distinction between the use of the terms " Vested" in the first paragraph 
 and "vested in possession or enjoyment" in the second paragraph of that 
 section. (T. D. 570; August 27, 1902.) 
 Export bills of lading : 
 Where goods are received for transportation from any point in the United States 
 to a foreign point, and any part of the transportation is within the territory of 
 the United States, the bill of lading must be stamped with a 1-cent stamp, 
 being the tax on the domestic part. (T. D. 524; May 17, 1902.) 
 Stamp tax— Stock pledged as collateral : 
 A memorandum of delivery of certificates of stock deposited as collateral security 
 for the future payment of money taxable under the first paragraph of Schedule 
 A, act of June 13, 1898, now a part of the act of March 2, 1901. Rule for con- 
 struction of amendatory statutes. (T. D. 457; January 6, 1902.) 
 
 P. 
 
 Packages of tobacco. 
 Cavendish, plug, and twist: 
 
 Manufactured plug tobacco can be sold at retail only from packages properly 
 labeled and stamped. No authority for stamping each plug of tobacco intended 
 for sale at retail for 5 or 10 cents. (T. D. 685; July 27, 1903. ) 
 
 Section 3362 of the Revised Statutes provides that all cavendish, plug, and twist 
 tobacco shall be put up in wooden packages containing not exceeding 200 
 pounds of tobacco, and this statute has not been so construed as to permit 
 manufacturers to put up small packages of plug or twist tobacco containing 
 less than 1 pound. (T. D. 683; July 21, 1903.) 
 One-ounce packages: 
 
 The act approved April 12, 1902, establishes a 1-ounce package of smoking 
 tobacco, and such packages must be properly labeled and stamped. There is 
 no authority of law for unstamped subdivision packages intended to be given 
 away as free samples, and the application for the recognition of smaller pack- 
 ages is denied. (T. D. 659; May 6, 1903.) 
 Statutory packages: 
 
 Manufacturers should guard against putting up subdivision packages of tobacco 
 of a weight so closely approaching the weight of a statutory package as to call 
 for an investigation of their goods on the market to determine whether pack- 
 ages requiring stamps have been removed without the proper stamps being 
 affixed thereto. (T. D. 725; December 5, 1903.) 
 Statutory packages required: 
 
 All manufactured tobacco is required to be put up in packages containing a statu- 
 tory quantity of tobacco properly labeled and stamped. Any person having 
 manufactured tobacco in his possession, and not intended for his own use, 
 without proper stamps for the amount of tax thereon being affixed to the 
 packages, will incur the penalties denounced by section 3374 of the Revised 
 Statutes of the United States. (T. D. 686; July 27, 1903.) 
 
 Subdivision packages: 
 Inasmuch as the law provides that all manufactured tobaccco, for sale or removal, 
 shall be put in packages of certain sizes, the Commissioner feels justified in 
 31331—05 10 
 
146 
 
 Packages of tobacco — Continued. 
 Subdivision packages — Continued. 
 
 abolishing the use of subdivision packages of smoking and chewing tobacco, 
 and in fact it has not been discovered that any legal authority exists for the 
 putting up of packages of tobacco, snuff, or cigars in any sizes other than those 
 provided for by section 3362, Revised Statutes, as amended. (T. D. 723; 
 November 30, 1903. ) 
 
 Passage tickets to Porto Rico. 
 
 Exemption of passage tickets for diplomats: 
 Passage tickets, when purchased and used by any member of the foreign diplo- 
 matic corps, are exempt from stamp tax on any vessel going from a port of the 
 United States to a foreign port. ' (T. D. 20196; October 13, 1898. ) 
 Passage tickets — Stamp tax: 
 The rule of exemption allowed October 13, 1898, to the foreign diplomatic corps, 
 in regard to stamping passage tickets (T. D. 20196), is extended to butlers and 
 servants attached to foreign embassies and legations to this country. (T. D. 
 295; March 7, 1901.) 
 Passage tickets from United States to foreign port, issued before July 1, 1901, 
 though for sailing after that date, are taxable under the law now in force. 
 (T. D. 3d3; March 21, 1901.) 
 Steamship tickets taxable: 
 The military occupation of Porto Rico by the United States Army and the signing 
 of the protocol between this Government and the Government of Spain did not 
 create such a condition as to render the island a United States possession to the 
 extent of exempting from stamp tax steamship passage tickets for passengers 
 going from American ports to Ponce. (T. D. 19964; August 24, 1898.) 
 
 Pawnbroker's tax. 
 
 A person using no tickets in his business, but making a pretense of buying articles 
 which are brought to him, which he holds with a verbal agreement that the 
 articles can be bought back again by the person selling them, upon the pay- 
 ment of a specified bonus, is liable to special tax as pawnbroker. (T. D. 
 20439; December 15, 1898.) 
 
 It is held that the lending of money on life-insurance policies and the holding 
 possession of them as collateral security is not that ordinarily or usually known 
 as the business of a pawnbroker, and, therefore, is not subject, as such, to 
 special tax as a pawnbrokerage. (T. D. 459; January 10, 1902.) 
 
 Special tax of pawnbroker is uot required to be paid for making loans when the 
 chattels are not taken or received by way of pledge, pawn, or exchange. 
 (T. D. 20552; January 17, 1899.) 
 
 The loaning of money on warehouse receipts, where the goods described therein 
 are not themselves received by the lender into his actual possession, is not the 
 business of a pawnbroker as defined by the statute. (T. D. 198; August 
 15, 1900.) 
 
 Payers of special tax. 
 
 Alcoholic compounds — Fruit juices: 
 Fruit juices sold to the liquor trade for blending purposes are compound liquors, 
 and no person can engage in making them for sale without being regarded as 
 a rectifier and being required to pay special tax accordingly under the third 
 subdivision of section 3244, Revised Statutes of the United States; and, further, 
 that fortified sweet wines can not be permitted to be used in compounding 
 "fruit juices," for the reason that under the law relating to fortification of 
 pure sweet wines tax has not been paid on the brandy contained therein. 
 (T. D. 807; July 11, 1904.) 
 
147 
 
 Payers of special tax— Continued. 
 
 Alcoholic liquor supplied by physicians to patients: 
 A physician who furnishes patients with distilled spirits, wine, or malt liquor, 
 to which no drug or medicinal ingredient has been added, involves himself in 
 special-tax liability under the internal-revenue laws. (T. D. 806; July' 11, 
 1904. ) 
 
 Alcoholic medicinal compounds, peruna: 
 
 There is no special tax under the internal-revenue laws of the United States for 
 the sale of peruna or other alcoholic compounds under a label holding them 
 out only as remedies for specified diseases. If sold as aheverage, special tax 
 is required. (T. D. 809; July 15, 1904.) 
 Alphabetical list special-tax payers: 
 
 All persons interested are entitled to examine the alphabetical list of special-tax 
 payers kept in the collector's office when it does not interfere with officers in 
 their, public duties. Record 10 must contain the true names of special-tax 
 payers and not fictitious ones, and be kept so that any person who examines 
 this record can locate at once the place where the business is done. (T. D. 
 846; December 14, 1904.) 
 
 Record 10 contains the registration of special-tax payers contemplated by section 
 3233, Revised Statutes, and nothing can be lawfully omitted therefrom which 
 the statute expressly requires to be included therein. (T. D. 821; August 30, 
 1904. ) 
 
 Angostura bitters — Prune juice: 
 
 Special tax of a liquor dealer is required to be paid for the sale of prune juice 
 that has been fortified by spirits or other alcoholic liquor, and also for the sale 
 of Angostura bitters. There is no special tax for the sale of such preparations 
 as "essence of peppermint," etc. (T. D. 787; May 7, 1904.) 
 Apple juice mixed with spirituous liquor: * 
 
 Where a beverage is simply the juice of the apple or the juice of the apple fla- 
 vored by any other fruit juice, special tax under the internal-revenue laws of 
 the United States is not required to be paid for its sale, even though by fer- 
 mentation it has become an intoxicant; but special tax is required to be paid 
 for the sale of apple juice mixed with spirituous liquor regardless of whether 
 or not the beverage is intoxicating. (T. D. 801; June 21, 1904.) 
 Auctioneers selling liquors: 
 
 Auctioneers must hold the requisite special-tax stamp as liquor dealers under the 
 internal-revenue laws of the United States for selling alcoholic liquors, even 
 when they confine these sales to liquors consigned to them by executors of 
 estates, trustees, or receivers, or other officers acting under order of court. 
 (T. D. 827; September 20, 1904.) 
 Auctioneers selling for railroad company: 
 
 Where separate consignments of wine are held by a railroad for freight charges 
 the special tax of a liquor dealer is not required for separate sales of the pack- 
 ages if each consignment is sold as one parcel. (T. D. 828; September 24, 
 1904.) 
 Payment of stamp tax. 
 
 Having reference to the payment of documentary stamp taxes accruing under 
 act now repealed, collectors are advised that there is no objection to such pay- 
 ment due under repealed acts, reporting the same for assessment on their next 
 ' list, and issuing a receipt therefor on Form 1. In no case must a receipt be 
 given for a tax paid by the purchaser of a documentary stamp (sec 3183, 
 Rev. Stat.). (T. D. 554; June 18, 1902.) 
 
148 
 
 Peddlers — Prosecution. 
 Peddlers of tobacco: 
 
 Merchants and country storekeepers running huckster wagons through the coun- 
 try taking orders for goods, including tobacco, snuff, or cigars, to be subse- 
 quently delivered, and who do not carry tobacco, snuff, or cigars on their 
 wagons from which to make immediate delivery, are not required to qualify 
 as peddlers of tobacco. The statutory definition of a peddler of tobacco, as 
 given in section 3244, subdivision 11, is any person who sells, or offers to sell 
 and deliver, manufactured tobacco, snuff, cigars, or cigarettes, traveling from 
 place to place j.n the town or through the country. (T. D. 817; August 23, 
 1904. ) 
 Place of sale mast be designated: 
 
 In prosecuting peddlers of distilled spirits evidence should be obtained showing 
 that the peddler sold distilled spirits at some particular place on the street or 
 highway, or elsewhere, and the evidence should be reported to the district 
 attorney, with the request that he institute prosecution against the peddler for 
 having sold distilled spirits at that particular place without paying special tax 
 as a liquor dealer. The prosecution should not be in general terms as against 
 a peddler of distilled spirits. (T. D. 584; September 24, 1902.) 
 
 The registry of peddlers of tobacco must be made in a "certificate of registry" 
 always conspicuously displayed in the place of business, the certificate being 
 nontransferable. (T. D. 505; April 17, 1902.) 
 
 Penalties. 
 Disclosure of liability: 
 
 In all cases where taxpayers disclose their liability, either verbally or in writing, 
 to a collector or a deputy collector, such officers should see that the taxpayer 
 is supplied with a return, or prepare a return for him, as provided in section 
 3173, Revised Statutes. No penalty accrues where parties consent to disclose 
 their liability to special tax within the calendar month. (T. D. 239; Novem- 
 ber 3, 1900. )" 
 Liability for special tax and penalty: 
 
 Where it is found in the case of any person, after the lapse of fifteen months 
 by you of a list upon which assessment might have been made, that he has 
 involved himself in liability for special tax and penalty, there can be no 
 assessment of this tax and penalty in view of the statutory limitation. But 
 under the long-settled ruling any person by making waiver of this limitation 
 and paying the amount of the tax can secure relief from the 50 per cent 
 penalty, and the tax only will be assessed. (T. D. 645; March 28, 1903.) 
 Neglect in making retnrns: 
 
 The lack of blank forms is no excuse for the neglect to make returns. Sickness 
 or absence no excuse if the taxpayer is well and present long enough in the 
 month to give a reasonable opportunity to make the return. (T. D. 232; 
 October 13, 1900.) * 
 
 Penalty envelopes: 
 
 The right to use penalty envelopes is confined to the Departments and Bureaus 
 of the Government, and officers connected therewith, for transmitting mail- 
 able matter relating exclusively to Government business. (T. D. 265; January 
 16, 1901.) 
 Penalty envelopes in private hands: 
 
 Collectors are instructed to see that penalty envelopes issued to them for official 
 use are not allowed in the hands of private parties, except as provided by law, 
 and will notify deputy collectors, storekeepers, and storekeeper gaugers acting 
 
149 
 
 Penalties— Continued. 
 
 Penalty envelopes in private hands— Continued. 
 
 under their supervision that they will be held responsible for the proper use of 
 such envelopes placed in their charge. (T. D. 319; April 4, 1901.) 
 Treasury departmental practice: 
 It is the practice of the Treasury Department to decline to furnish penalty 
 envelopes to national-bank depositaries, in which to send to the Secretary of 
 the Treasury the original of every certificate of deposit issued by them, which 
 they are required to transmit by the provisions of section 3621, Revised Stat- 
 utes as amended. (T. D. 833; October 14, 1904.) 
 
 Perfumery, cosmetics, etc. (See also Decisions 19564, 19614, 19702, 19705.) 
 
 1. Samples of all articles mentioned in Schedule B, act of June 13, 1898, when 
 removed for consumption by gratuitous distribution or otherwise, are liable to 
 stamp tax, according to the retail price or value of such sample, on and after 
 July 1, 1898. 
 
 2. Perfumeries and cosmetics and other articles of a similar nature, taxable 
 under Schedule B, are equally liable to stamp tax when, sold in bulk packages 
 as when sold in retail packages, and the value of the stamp or stamps to be 
 affixed must correspond with and be proportionate to the price charged for 
 the smallest retail package with its contents. (T. D. 19563; June 23, 1898.) 
 
 Petrolatum — Stamp tax. 
 Caution notice: 
 Prescribing a caution notice to be affixed to bulk packages of petrolatum, under 
 which the same may be removed, in certain cases, unstamped, and ruling that 
 the exemptions in section 20, act of June 13, 1898, have no application to it. 
 (T. D. 21073; April 26, 1899.) 
 Stamp tax computed on retail price: 
 Petrolatum is taxable whether intended to be used as a medicine, cosmetic, 
 lubricant, or otherwise. The manufacturer or refiner should stamp petrolatum 
 in bulk, or otherwise, before removal from his possession for consumption or 
 sale, and the stamp tax must be computed upon the retail price of the article, 
 which is held to be the refiner's price, with reasonable profit to the jobber 
 and retailer added. (T. D. 20982; April 5, 1899.) 
 
 Tax nnder Schedule B: 
 
 Petrolatum is subject to stamp tax, under Schedule B, regardless of the style 
 and manner in which it is put up and sold. (T. D. 20780; March 1, 1899.) 
 
 Pipe-line companies — Special tax. 
 
 Persons, firms, and companies owning or controlling pipe lines connected with 
 mains or pipes for distributing natural or artificial gas not exempt from tax 
 imposed by section 27, act of June 13, 1898. (T. D. 21494; August 10, 1899.) 
 Tax imposed by section 27, act of June 13, 1898, held to apply to gross receipts 
 of persons, firms, or companies owning or controlling any pipe line for trans- 
 porting natural gas. (T. D. 21341; July 1, 1899.) 
 
 Philippine Islands. 
 
 Articles shipped in bond or with drawback: 
 The existing regulations governing the exportation to foreign countries of arti- 
 cles subject to internal-revenue tax, or on which such tax has been paid, are 
 hereby extended and made applicable to like articles shipped from the United 
 States to the Philippine Islands, in bond or with benefit of drawback. (T. D. 
 , 491; March 21, 1902.) 
 
150 
 
 Philippine Islands — Continued. 
 
 Inspection and stamping imported cigars: 
 Section 2804, Revised Statutes, as amended by section 26 of the act of August 28, 
 1894, requires the inspection and stamping of imported cigars before delivery 
 from customs custody. It is held, therefore, by the Secretary of the Treasury 
 that cigars from the Philippine Islands should be stamped with customs 
 stamps like cigars imported from foreign lands and that the word "Philip- 
 pines" should be placed on the stamps by way of distinction. (T. D. 582; 
 September 23, 1902. ) 
 
 Passage tickets no longer taxable: 
 Referring to the necessity for stamping passage tickets sold for passage between 
 the United States and the Philippine Islands, it is held, in pursuance of a 
 decision of the Supreme Court of the United States, that by the treaty ceding 
 the Philippines, the islands ceased to be foreign territory, and, therefore, pas- 
 sage tickets thereto are no longer subject to stamp tax under the internal-rev- 
 enue laws. (T. D. 498; April 11, 1902.) 
 
 Philippine cigars tax: 
 The first section of the Philippine act of July 1, 1902, provides, in effect, that 
 the laws of the United States shall not apply to the Philippine Islands, and, 
 therefore, since that act went into effect the Attorney-General holds that sec- 
 tion 3448, Revised Statutes, has been inoperative in the Philippines. He holds 
 further that the provisions of section 3394 undoubtedly apply only to cigars 
 manufactured within the bounds of our internal-revenue laws — i. e., within the 
 territory where these laws are operative. If this view is not correct there was 
 apparently no necessity for the passage of section 3402, which says that "all 
 cigars imported from foreign countries shall pay an internal-revenue tax." 
 (T. D. 581; September 17, 1902.) 
 
 Philippine export tax: 
 All articles which may be exported free of tax or with benefit of drawback to 
 foreign countries may also be so exported to the Philippine Islands under 
 provisions of section 6 of Philippine tariff act approved March 8, 1902. 
 (T. D. 483; March 11, 1902.) 
 
 So funding taxes: 
 As to claims for a refund of taxes paid on articles shipped to the Philippine 
 Islands, the Commissioner rules that the character of the goods shipped, the 
 date of shipment, the amount of tax paid thereon, the name of the vessel, and 
 the name of the port to which shipped should should be stated in the body of 
 the claim. The claims should be supported, where possible, by clearance 
 certificates and by an affidavit of the consignee, showing that the goods were 
 actually received at a port of the Philippine Islands. (T. D. 542; July 3, 
 1902.) 
 
 Secretary of Treasury to San Francisco collector: 
 The Secretary of the Treasury advises the collector of customs at San Francisco, 
 September 12, 1902, to the effect that no internal-revenue tax can be legally 
 assessed, under the laws of the United States, on cigars shipped from the 
 Philippine Islands. (T. D. 582; September 23, 1902.) 
 
 Temporary revenue act: 
 An act temporarily to provide revenue for the Philippine Islands, and for other 
 purposes. Articles subject to internal-revenue tax may be shipped to the 
 Philippine Islands without payment of tax or with benefit of drawback as 
 to a foreign country, under regulations to be prescribed by the Commissioner 
 of Internal Revenue, with the approval of the Secretary of the Treasury. 
 (T. D. 484; March 13, 1902.) 
 
151 
 
 Phosphates, ciders, etc.— Special tax. 
 Addition of distilled spirits: 
 If distilled spirits are added to the beverages called "phosphates" or " ciders" 
 to any ex tent whatever sufficient to bring them within the notice of the internal- 
 revenue laws, they are changed into alcoholic compounds, and the manufac- 
 turer is required to pay special tax as a rectifier for making such compounds 
 for sale, and as a liquor dealer for selling them. (T. D. 475; February 25, 
 1902.) 
 
 Compound liquors: 
 
 Beverages manufactured for sale as phosphates, ciders, etc., if made by the addi- 
 tion of distilled spirits or wines to other materials in any quantity coming 
 within the notice of the internal-revenue laws, are compound liquors, for the 
 manufacture and sale of which special tax is required to be paid. (T. D. 475; 
 February 25, 1902. 1 
 Playing^ cards — Stamp tax. 
 
 Tax is required to be paid, and the requisite stamp affixed, on each pack of 
 miniature playing cards, notwithstanding they are made for candy manufac- 
 turers to pack in packages of candy, one card in each package. (T. D. 843; 
 November 17, 1904.) 
 
 Playing cards, having certain advertising matter on the back of each card, are 
 subject to stamp tax. (T. D. 637; March 16, 1903. ) 
 Porto Rico. (See Decision (stamp tax) No. 252.) 
 Articles exported: 
 
 Articles subject to internal-revenue tax, exported to Porto Rico from and after 
 May 1, 1900, are not entitled to be exported free of tax or with benefits of 
 drawback under internal-revenue laws. (T. D. 107; April 23, 1900.) 
 
 Instructions set forth in circular No. 54 (Int. Rev., No. 565) as to internal- 
 revenue tax imposed by section 3 of the act of April 12, 1900, upon articles of 
 merchandise imported from Porto Rico from and after May 1, 1900. (T. D. 
 109; April 25, 1900.) / 
 
 Instructions in circular No. 56 (Int. Rev., No. 566) as to forms and methods of 
 procedure in the collection of Porto Rican internal-revenue taxes. (T. D. 
 110; April 25, 1900.) 
 Articles taxable under act of 1900: 
 
 From and after May 1, 1900, under Treasury decision No. 22157, dated April 17, 
 1900, the following articles manufactured or produced in the United States can 
 hot be exported to Porto Rico in bond without the payment of tax, nor with 
 the benefit of drawback as heretofore, viz: Distilled spirits, stills, and worms; 
 tobacco, snuff, cigars, and cigarettes; fermented liquors; playing cards; oleo- 
 margarine; mixed flour; proprietary articles, medicines, bottled wine, and all 
 other products named in Schedule B, war-revenue act. (T. D. 113; April 28, 
 1900. ) 
 Custom-house manifests exempt: 
 
 Manifests for custom-house entry or clearance are exempt from stamp tax when 
 relating to vessels to or from ports in Porto Rico. (T. D. 205; August 18, 
 1900.) 
 Porto Eican manufactures imported: 
 
 No permit for release is required for articles of merchandise arriving from Porto 
 Rico with proper internal-revenue stamps affixed. (T. D. 413; September 24, 
 1901. ) 
 
 Porto Rican manufactures coming into the United States, though relieved of 
 customs dues, are subject to internal-revenue tax. (T. D. 407; August 22, 
 1901. ) 
 
152 
 
 Porto Rico — Continued. 
 
 Porto Rican manufactures imported — Continued. 
 Section 3, act of April 12, 1900, provides that "upon articles of merchandise of 
 Porto Rican manufacture coming into the United States and withdrawn for 
 consumption or sale upon payment of a tax equal to the internal-revenue tax 
 imposed in the United States upon the like articles of merchandise of domestic 
 manufacture; such tax to be paid by internal-revenue stamp or stamps to be 
 purchased and provided by the Commissioner of Internal Revenue, and to be 
 procured from the collector of internal revenue at or most convenient to the 
 port of entry of said merchandise in the United States, and to be affixed under 
 such regulations as the Commissioner of Internal Revenue, with the approval 
 of the Secretary of the Treasury, shall prescribe." (T. D. 387; July 26, 1901.) 
 Forto Rico's status under Treasury Decision 107: 
 In accordance with Treasury decision 107, it is held that from and after May 1, 
 1900, Porto Rico is not to be considered a foreign country, in the meaning of 
 Schedule A, war-revenue laws, and therefore passage tickets from any port of 
 the United States are exempt from stamp tax. (T. D. 115; May 1, 1900.) 
 United States revenue laws under act of 1900: 
 In view of the provisions of section 3, act of April 12, 1900, the United States 
 internal-revenue laws are not in force in Porto Rico. (T. D. 216; September 
 25, 1900.) 
 Bay rum manufactured in Porto Rico, when brought into the United States, is 
 liable to internal -revenue tax as distilled spirits. (T. D. 404; August 15, 1901.) 
 
 Post stamping — Instruments and documents. 
 An attorney may affix or cancel stamps: 
 
 The parties to an instrument can, by a proper power of attorney, or by an 
 equivalent written instrument, authorize a person to affix and cancel the stamps 
 that are necessary to be affixed to the instrument, if this occurs before the 
 party who makes or signs the instrument delivers it to the party to whom it 
 is to be issued. (T. D. 21153; May 15, 1899.) 
 
 Recorders of deeds should note upon their records the absence or the presence 
 of stamps on documents presented for record. (T. D. 21226; June 2, 1899.) 
 Collector may affix stamp after imposing penalty: 
 
 Any person who has not affixed to an instrument the stamp required by law at 
 the time of executing or issuing the same should present the instrument to a 
 collector of internal revenue, who shall, upon payment of the tax due, and 
 penalty, if any is required, affix the proper stamp and note the date when 
 affixed upon the margin of the instrument. (T. D. 546; July 8, 1902.) 
 Penalties remitted by reason of mistake: 
 
 Deputy collectors may remit penalties and stamp instruments left unstamped 
 by reason of inadvertence or mistake, when authorized by the collector to 
 exercise such authority for the time being. Instruments to be validated may 
 be sent from a distance to the collector by mail, with affidavit, instead of 
 being personally brought to the collector's office. (T. D. 20696; February 
 10, 1899.) 
 Penalty not revokable after twelve months: 
 
 Collectors can not remit penalty for omission of stamps where the instrument 
 was presented more than twelve months after it was issued. When the instru- 
 ment is presented at the expiration of twelve months, after issue, it is necessary 
 to require payment of the penalty to entitle it to be stamped. (T. D. 21368; 
 July 10, 1899.) 
 
153 
 
 Post stamping— Instruments and documents— Continued. 
 
 Post stamping allowable in absence of fraud: 
 Where penalties are incurred for failure to stamp instruments, section 13, the act 
 of June 13, 1898, provides that, if within twelve months after failure to stamp 
 instruments, the parties failing shall bring them to the collector and pay the 
 proper stamp charges, and it shall appear to the collector that the failure was 
 caused by accident, mistake, inadvertence, or urgent necessity, without any 
 design to defraud the United States or to evade or delay the payment thereof, 
 it shall be lawful for the collector to remit the penalties and permit such 
 instruments to be stamped. The Commissioner of Internal Revenue can not 
 remit such penalties or refund them when collected with authority. (T. D. 
 166; June 28, 1900.) 
 
 Post stamping when free from fraudulent intent: 
 
 As to post stamping of instruments and documents after twelve months _froni 
 date of issue, in any case where the omission of the stamp was free from 
 fraudulent intent, and where no adverse right has been in good faith acquired 
 between the dates of execution of the first and second instruments, the law 
 specifically protects such right in the last proviso to section 13, act of June 13, 
 1898, wherein it is prescribed that the post-stamped instrument " may be used 
 in all courts and places in the same manner and with like effect as if the instru- 
 ment had been originally stamped." The contrary decision of Judge Stake, 
 printed in Treasury decisions, ruling No. 53, March 1, 1900, is held to be 
 unsound in law. (T. D. 90; April 3, 1900.) 
 
 Treasury decision 21539: 
 
 The final paragraph of Treasury decision 21539, August 25, 1899, explained as 
 meaning that when an unstamped instrument is brought to the collector for 
 validation under section 13 of the law, after twelve months have expired from 
 the date of execution, and the party holding the instrument does not wish to 
 pay the penalty of $10 required, to have the same validated the collector may 
 receive the amount of the stamp tax due on the instrument by selling the 
 appropriate stamp, which must be affixed by the party himself thereto. 
 (T. D. 197; August 13, 1900.) 
 
 Unstamped instruments as evidence in court: 
 The law provides that no instrument required by law to be stamped, from which 
 the proper stamp is omitted, shall be recorded or used as evidence in any 
 court until properly stamped. The person who issues the instrument should 
 affix and cancel the stamp, or incur a penalty not exceeding §100, if the 
 omission be not inadvertent. A register who receives an unstamped instru- 
 ment for record should return it to the sender to be stamped according to 
 law. (T. D. 94; April 12, 1900.) 
 
 Powers of attorney, etc. (See also Decisions 19605.) 
 Transfers and voting stock: 
 
 An instrument authorizing the secretary to transfer stock on the books of a com- 
 pany or coi'poration is not held to be subject to stamp tax as a power of attor- 
 ney. (T. D. 21467; August 2, 1899.) 
 
 Powers of attorney embodied in leases must pay the tax required for both instru- 
 ments. (T. D. 282; February 15, 1901. ) 
 
 Powers of attorney, or proxies, used for the purpose of voting at meetings of 
 building ,and loan associations, are subject to stamp tax, and all former rulings 
 inconsistent with 'this are revoked. (T. D. 270; January 26, 1901.) 
 
 Powers of attorney, proxies, receipts, sales of certificates of stock, etc., are liable 
 to stamp tax under certain conditions. (T. D. 19700; July 15, 1898.) 
 
 Subscriptions to the 3 per cent Government loan are not taxable under the war- 
 revenue law, but powers of attorney require a 25-cent stamp to be affixed, 
 
154 
 
 Powers of attorney, etc. — Continued. 
 Transfers and voting stock — Continued. 
 
 except powers for the collection of pensions, bounty, etc., claims from the 
 United States, or property lost in the military or naval service. (T. D. 19621; 
 July 2, 1898.) 
 Proceeds, sales. 
 
 Collectors are notified that it is not necessary to procure separate certificates of 
 deposit for sums realized from the sales of real estate, and that the same should 
 be included*in their regular daily. certificate. (T. D. 278; February 12, 1901.) 
 Surplus proceeds of distraint sales: 
 
 Surplus proceeds, arising from the sale of property distrained and sold under 
 internal-revenue laws for the nonpayment of taxes, must be deposited with the 
 Treasurer of the United States, who, upon application and satisfactory proofs in 
 
 " support thereof, shall, by warrant on the Treasury, cause the same to be paid 
 to the person legally entitled to receive them. (See section 3195, Revised 
 Statutes.) (T. D. 390; July 29, 1901.) 
 Proprietary articles — Stamp tax. (See also Medicinal preparations. ) 
 Articles priced less than 5 cents: 
 
 Five cents being the lowest retail price mentioned in Schedule B, taxable articles 
 retailing for a less sum may be packed together under one wrapper, band, or 
 other inclosure when the retail price of said packages shall not in the aggre- 
 gate exceed 5 cents, and a stamp for one-eighth cent shall be affixed on the 
 outside band or wrapper, or other inclosure, in such a manner that the stamp 
 will be wholly destroyed in opening the same. In such cases each subpackage 
 shall have printed thereon the words, "Sold from a duly stamped package." 
 (T. D. 19694; July 14, 1898.) 
 Articles proprietary that are not taxable: 
 
 Manufacturers and importers are required to fix the retail price of articles sold 
 by them, and to stamp their goods accordingly. (T. D. 19705; July 16, 1898.) 
 
 Such articles as insect powders, bugine, insectine, killerine, put up for killing of 
 insects, come under the head of proprietary articles, but are not taxable under 
 any provision of law taxing proprietary articles. (T. D. 19557; June 22, 1898.) 
 Chemical preparations: 
 
 Artificial mineral waters, advertised as beneficial for gout, rheumatism, etc., are 
 held to be taxable under paragraph 1,' Schedule B, act of June 13, 1898, and 
 the stamp should be affixed to each bottle or siphon in accordance with the 
 retail price or value. (T. D. 19622; July 5, 1898.) 
 
 Stamping of chemical preparations and prepared drugs. Malt-extract prepara- 
 tions. Food preparations. Bulk packages. Retailer selling drugs at ''cut 
 prices" must stamp them according to the advertised retail price fixed by the 
 manufacturer. (T. D. 19614; July 1, 1898.) 
 Drugs, uncompounded: 
 
 Decision of the United States district court, southern district of New York, 
 November 22, 1898, relating to stamping of " uncompounded medicinal drugs 
 or chemicals." Aristol, phenacetin, europhen, piperazine, protargol, loso- 
 phen, sulfonal, tannigen, tannopine, and salophen are exempt from stamp tax 
 by proviso in section 20, act of June 13, 1898, as " uncompounded" drugs. 
 (T. D. 20634; January 24, 1899.) 
 Keeley's medicines taxable: • 
 
 Articles taxable under Schedule B in the hands of retail dealers July 1, 1898, 
 must, when sold, be stamped according to the retail price as fixed by the 
 manufacturer. (T. D. 19603; June 29, 1898.) 
 
155 
 
 Proprietary articles— Stamp tax— Continued. 
 Keeley's medicines taxable— Continued. 
 
 If the retail price commonly charged for a proprietary article does not properly 
 represent the tax stamp affixed, that fact will be evidence of bad faith on part 
 of the manufacturer, making the goods liable to seizure. (T. D. 20324; 
 November 15, 1898. ) 
 
 The medicines known as Keeley's "double chloride of gold remedies" are tax- 
 able as proprietary preparations and must be properly stamped before 
 removal from the laboratory, whether for sale to patients or to' institutes. 
 (T. D. 20095; September 26, 1898.) 
 liability of certain preparations: 
 
 Regulations as to liability of medicinal preparations and perfumery and cosmet- 
 ics to stamp tax under Schedule B, act of June 13, 1898. See circular No. 16, 
 Internal Revenue, No. 501, revised. (T. D. 37; February 8, 1900.) 
 Requirement of Schedule B, war-revenue act: 
 
 The maker or manufacturer of any of the articles named in Schedule B, act of 
 June 13, 1898, on and after date of said act, must affix the proper stamp thereto 
 before the same are sold, sent out, removed, or delivered ; and wholesale or 
 retail dealers, not manufacturers thereof, must affix the proper adhesive tax 
 stamp at the time the packet, box, bottle, pot, phial, or other inclosure, with 
 contents, is sold at retail. (T. D. 19527; June 21, 1898.) 
 Ruling as to "sheep dip:" 
 
 Revoking a previous ruling, it is now held that, although the preparation of 
 "sheep dip" may be used as a remedy for sheep scab after it has been devel- 
 oped, its primary use is as an insecticide to kill insects and parasites before 
 sheep become diseased, and it is therefore exempt from tax. (T. D. 19824; 
 August 4, 1898.) 
 Standard extracts at retail: 
 
 As to standard extracts, such as perfumes, in order to secure a uniform method 
 of computing the tax, it is held that 8 ounces shall be considered to be the 
 largest retail package, and that quantities in excess of 8 ounces are to be taxed 
 as bulk packages. Retail packages must be stamped in accordance with the 
 price to consumers, and bulk packages in accordance with the number of 
 8-ounce packages contained therein, and according to the retail price of the 
 8-ounce packages. (T. D. 73; March 15, 1900.) 
 
 Custom-house officers are notified that imported bay rum, in bulk packages, 
 must be stamped to the amount of 8f cents per gallon. (T. D. 187; July 27, 
 1900. ) 
 
 Proprietary stamps furnished by the Government may be sold to all persons 
 applying therefor. Those made from private designs and furnished without 
 expense to the Government can only be had from their proprietors. (T. D. 
 93; April 10, 1900.) 
 Taxable articles unstamped after 1899: 
 
 All velvet molasses candy manufactured by H. L. Hildreth, of Boston, is 
 relieved from liability to seizure by removal prior to December 5, 1899, and 
 payment of $5,000 as assessment to the collector at Boston. All proprietary 
 goods having taxable features found unstamped subsequent to December 5, 
 1899, are liable to seizure. (T. D. 39; February 10, 1900.) 
 Treasury decision 19694 as to subpackages: 
 
 Under Treasury decision 19694, made July 14, 1898, as to the packing and 
 stamping of articles mentioned in Schedule B, it is now held that taxable arti- 
 cles of medicine, perfumery, etc., retailing for less than 5 cents may be put up 
 
156 
 
 Proprietary articles — Stamp tax — Continued. 
 
 Treasury decision 19694 as to subpackages — Continued. 
 
 as therein directed and stamped, and, on destroying the stamp, the subpack- 
 ages may be detached and placed in a vending or slot machine. Each sub- 
 package must be labeled in these words, viz, "Sold from a duly stamped 
 package." (T. D. 247; November 17, 1900.) 
 Waters advertised as "cures:" 
 It is held by the Commissioner that all "waters " advertised as cures or specifics 
 for any ailment come within the purview of the statute relating to medicinal 
 preparations, with the exception of the exemption provided in the first para- 
 graph of Schedule B for "natural spring waters and carbonated natural spring 
 waters," and in section 20 for " uncompounded medicinal drugs or chemicals." 
 (T. D. 61; March 7, 1900.) 
 Prosecutions and suits.- 
 The duties of collectors: 
 It is the duty of collectors of internal revenue to look after cases in suit, to keep 
 advised of the status of each case, watch its progress, consult with the district 
 attorney as occasion may require, and furnish him with necessary information. 
 (T. D. 702; September 26, 1903.) 
 
 Prunes — Wine. 
 
 Prune juice — Liability for sale: 
 
 A person can not lawfully sell prune juice or prune extract, containing about 
 3 per cent of alcohol, even though the article is not sold otherwise than as a 
 supply for bottlers' and as a preparation for coloring, without holding the 
 requisite special-tax stamp as a liquor dealer. (T. D. 824; August 31, 1904.) 
 Wine manufactured therefrom: 
 
 Responding to the inquiry as to whether any revenue must be paid to the Gov- 
 ernment on wine manufactured from prunes, the Commissioner holds that if 
 it is simply a wine manufactured from the juice of prunes, and is not made in 
 imitation of sparkling wine, and if there is no addition of distilled spirits 
 thereto (sec. 3328, Rev. Stat.) there is no tax thereon under the internal- 
 revenue laws of the United States; but dealers therein are required to pay 
 special tax as liquor dealers under these laws. (T. D. 633; March 4, 1903.) 
 Publication of monthly statements. 
 
 Collectors may furnish for publication monthly statements of the aggregate • 
 receipts from sale of stamps for tobacco, snuff, cigars, and cigarettes, but any 
 information that would disclose the business done by, or the value of stamps 
 issued to, any individual manufacturer must be withheld. (T. D. 263; January 
 9, 1901.) 
 Purchasing agents — Special tax. 
 
 Parties who do not buy and sell whisky or beer, but upon receipt of orders from 
 foreign customers act merely as purchasing agents, do not involve themselves 
 in special-tax liability. (T. D. 823; August 31, 1904.) 
 Puts, calls, and spreads. 
 
 A dealer in puts, calls, and spreads is subject to special tax and stamp tax under 
 the first clause of paragraph 3, section 8, act of March 2, 1901, notwithstanding 
 the fact that his business is not the same as that commonly known as " bucket 
 shop." (T. D. 400; August 8, 1901.) 
 
 ' ' Calls," being agreements to sell stock, are subject, as such agreements, to stamp 
 tax. (T. D. 338; May 4, 1901.) 
 
157 
 
 R. 
 
 Railroad checks— Stamp tax. (See, also, Decisions 21521; 21559.) 
 Collecting stamp tax: 
 The method.in vogue by the Pullman Car Company, where a stamp is imprinted 
 on the passenger's berth or seat ticket, a portion of it on both the original 
 given to the passenger and on the duplicate retained by the conductor, is held 
 to be the most satisfactory way of collecting the stamp tax on sleeping car and 
 parlor car railroad tickets. (T..D. 21342; July 5, 1899.) 
 Conductors' rebate checks: 
 The ruling that rebate checks, issued by railroad conductors, being the excess 
 on fares collected on trains, and being redeemable by the company's agent on 
 presentation, are liable, to stamp tax, has been revoked, in view of the opinion 
 of the Attorney-General. Taxes which have been paid erroneously, according 
 to this decision, can be refunded upon proper application being made therefor. 
 (T. D. 20170; October 12, 1898.) 
 
 Rebate claims — Tobacco. 
 Affidavit needs no special form: 
 
 No special form of affidavit or statement is required to be,made by a consignor to 
 accompany a claim made by a consignee for rebate of taxes on tobacco and 
 snuff which may be in transit on July 1, 1902. Any affidavit and statement 
 agreeing substantially with the form following will be accepted as 1 competent 
 evidence in support of a claim for rebate on tobacco or snuff in transit. The 
 consignee, after receiving all goods that were in transit July 1, 1902, from several 
 persons, may include them in one claim instead of making separate claims for 
 individual consignments. (T. D. 521; May 13, 1902.) 
 Appropriation for rebate claims: 
 
 The act of Congress, approved June 28, 1902, appropriates $2,700 for the pay- 
 ment of claims for rebate of tax on tobacco and snuff, under the act of April 
 12, 1902. It is essential that no incomplete claim for rebate shall be certified 
 to the Bureau of Internal Revenue; and all required affidavits, bills of sale, 
 and bills of lading, relating to goods in transit, and all affidavits explaining 
 why an inventory was not taken of the goods on July 1, in the presence of two 
 disinterested witnesses, should be procured before any doubtful claim of that 
 character is certified for payment. (T. D. 579; September 12, 1902.) 
 Claims allowable to be promptly reported: 
 
 It is the duty of collectors to ascertain the actual number of claims allowable, 
 presented at their several offices, for rebate on tobacco and snuff, under the 
 act of April 12, 1902, within the limitation of time fixed by statute, and report 
 immediately' the number and the probable amount of rebate involved. (T. D. 
 579; September 12, 1902.) 
 Inventoring packages of irregular size: 
 
 If the packages of tobacco are of irregular size, and the net weight includes 
 pounds and fractions of a pound, they should be inventoried in columns 9 and 
 12, on Form 481, the fractions being written opposite the proper number of 
 pounds printed on the form. (T. D. 363; June 21, 1901. ) 
 
 Where a dealer in tobacco, snuff, or cigars has two or more places of business, 
 he will be required to inventory and make a separate claim for rebate on goods 
 held at each place. If the aggregated rebate on all tobacco, snuff, and cigars 
 held at one place on the 1st day of July amounts to less than $10, it would not 
 be an allowable claim. (T. D. 369; June 24, 1901). 
 
158 
 
 Rebate claims — Tobacco — Continued. 
 No rebate on stamped packages: 
 No rebate will be made on stamped packages of tobacco, snuff, or cigars in the 
 hands of dealers, except such as were purchased previous to July 1, 1901, and 
 which are in their hands or in transit on that date, and no rebate will be 
 made on_unused stamps issued previous to July 1, 1901, and held by manufac- 
 turers of tobacco on that date, nor can such unused stamps be exchanged for 
 other stamps issued on a basis of 20 per cent discount. (T. D. 327; April 18, 
 1901). 
 
 Packages of tobacco and snuff: 
 The act of March 3, 1903, amendatory of the act of April 12, 1902, as to payment 
 of rebate of tax on tobacco and snuff, provides that claims for such rebate, 
 presented after the sixty days' limit, shall be allowed on proper evidence, 
 "provided that the tobacco and snuff on which such rebates are claimed were 
 duly inventoried on July first, nineteen hundred and two, in accordance with 
 the regulations of the Commissioner of Internal Revenue, but no such claims 
 shall be paid unless presented prior to April first, nineteen hundred and three." 
 The date of the receipt of the collector must be indorsed on each claim before 
 the transmittal of it to the Commissioner. (T. D. 634; March 5, 1903.) 
 
 Eebate only on unbroken packages: 
 A rebate will be paid only on original and unbroken factory packages of tobacco 
 and snuff in hands of dealers or manufacturers or in transit July 1,, 1901. 
 Tobacco and cigars sold and delivered on and after that date are not subject to 
 rebate. Unused stamps held on that date by manufacturers of tobacco will 
 not be subject to rebate, nor can the same be exchanged for stamps issued on 
 a basis of the 20 per cent discount. (T. D. 327; April 18, 1901.) 
 
 Rebate on snuff in transit: 
 The Commissioner holds that, under the act of April 12, 1902, a claim made for 
 rebate of taxes on tobacco or snuff actually in transit July 1, 1902, will be 
 regarded as cumulative — that is, a dealer who on that day has tobacco or snuff 
 in transitu, purchased and consigned to him from different persons, may on 
 receiving all of such goods include them in one claim, which must be accom- 
 panied with affidavits from the several consignors, original invoices or bills of 
 sale, and duplicate bills of lading, relating, respectively, to each lot or con- 
 signment of tobacco alleged to have been in transit July 1, 1902, and included 
 in his claim. (T. D. 521; May 13, 1902.) 
 
 Tobacco, snuff, or cigars in transit: 
 Tobacco, snuff, or cigars in transit when the discount or reduction in taxes takes 
 effect can not be inventoried with goods actually on .hand on the 1st day of 
 July. Consignee, after receiving the goods in transit, may include the same 
 in one claim with other goods that were also in transit on July 1 from different 
 consignors. No claim can be allowed or drawback paid for a less amount than 
 110. (T. D. 372; June 25, 1901.) 
 
 Receipts — Stamp tax. 
 Mail carriers' receipts: 
 Gross receipts are assessed for tax, payable hereafter at the expiration of the 
 
 current special-tax year. (T. D. 488; March 15, 1902. ) 
 Receipts given by mail carriers who make a practice of carrying packages from 
 one town to another, for which they receive a fee, are liable to a 1-cent stamp 
 tax. (T. D. 478; March 3, 1902.) 
 
159 
 
 Receipts— Stamp tax— Continued. 
 
 Eeceipts under Schedule A, war-revenue law; 
 A receipt not in the form of a bank check, draft, or certificate of deposit, not 
 drawing interest, and not being an order for the payment of a sum of money, 
 is not taxable at 2 cents, under paragraph 3, Schedule A, war-revenue law. 
 (T. D. 19655; July 7, 1898.) 
 Special-delivery receipts: 
 Receipts issued for special-delivery baggage are exempt from stamp tax under 
 war-revenue law; Treasury decision 21668 is revoked, upon reconsideration. 
 (T. D. 13; January 9, 1900.) 
 
 Surrendering warehouse receipts: 
 Proprietors of special bonded warehouses may (except in case of tax-paid with- 
 drawals) decline to deliver brandy stored in such warehouses until the ware- 
 house receipts issued by him are surrendered, where the surrender of such 
 receipts, before delivery of the spirits, is required by law. (T. 1). 714; 
 November 3, 1903. ) 
 
 "Warehouse receipts taxable: 
 
 Warehouse receipts need not be technically negotiable paper in order to be lia- 
 ble to tax. Judge Clark, of the circuit court of the United States, western 
 district of the western division of Tennessee, holds that any ordinary ware- 
 house receipt may or may not be negotiated in the qualified sense so as to 
 pass the title to a third person, or be used as a pledge or security for a loan. 
 (T. D. 469; February 5, 1902.) 
 
 (See also Decisions 6; 20985; 21020; 21692.) 
 Wharf receipts to shippers: 
 
 A wharf receipt, given to a shipper, in exchange for which a bill of lading bear- 
 ing a stamp is issued, does not require a stamp. (T. D. 19604; June 29, 1898. ) 
 Receipts of warehouses. 
 Cartman's tally tickets: 
 
 When no regular warehouse receipt has been issued in exchange for cartmen's 
 tally tickets covering goods delivered for storage, then each tally ticket will be 
 held to cover a separate consignment, and will require to be stamped as a 
 warehouse receipt. (T. D. 21493; August 10, 1899.) 
 
 (See also Decisions 20914; 21044; 21524.) 
 Consignment of deliveries for storage: 
 
 Instruments evidencing storage of furs taxable as warehouse receipts; also tax- 
 able as fire-insurance policies when a fire-insurance risk is covered by the 
 instrument. (T. D. 21110; May 10, 1899.) 
 
 Where there are a number of deliveries of goods for storage in fulfillment of only 
 one consignment, the stamp tax is required on the single consignment and not 
 on each of the several deliveries. But on each and every consignment of 
 goods, separately delivered, the tax is due on the warehouse receipt given as 
 evidence of storage. (T. D. 21079; May 2, 1899. ) 
 Cotton received for compression: 
 
 Where cotton has been received for compression and handling and remains 
 longer than the allotted time, no tax as a warehouse receipt accrues on the bill 
 presented for the charges for storage. (T. D. 20883; March 20, 1899. ) 
 Elements of a taxable receipt: 
 
 The elements necessary to constitute a taxable warehouse receipt are, viz: First, 
 goods, merchandise, or property must appear to be dealt with; second, they 
 are dealt with for purposes of storage, directly or indirectly; third, there must 
 appear some acknowledgment or receipt of the goods, merchandise, or prop- 
 
160 
 
 Receipts of warehouses — Continued. 
 
 Elements of a taxable receipt — Continued. 
 
 erty, the receipt being made by the warehouseman in person or by an authorized 
 agent; fourth, some one must appear as the storer of the goods, the receipt 
 being subject to a tax of 25 cents. (T. D. 20646; January 27, 1899.) 
 
 Receipt as a pledge: 
 When a warehouse receipt for grain is pledged as security for a loan, a tax 
 accrues as a pledge, whether the pledge is made by the producer of the grain 
 or by a dealer in grain. (T. D. 21497; August 15, 1899. ) 
 
 Receipt not necessarily negotiable: 
 The Commissioner holds, with the opinion of the Attorney-General of December 
 29, 1898, that a warehouse receipt is not, necessarily, a negotiable writing, being 
 nothing more nor less than the written statement of the warehouseman that 
 certain goods, merchandise, or property are deposited in his warehouse and 
 held on storage for some particular person or persons. It is the written 
 evidence of the storage of the property. This is the paper or instrument 
 which it is the intention of the law to tax. (T. D. 20484; January 3, 1899. ) 
 
 Safe-deposit receipts taxable: 
 Books, household furniture, pictures, statuary, and wearing apparel not con- 
 sidered as "valuables;" and when safe-deposit or other companies receive 
 such articles on deposit for hire, the receipts issued therefor must be stamped 
 as warehouse receipts. The word "valuables" as used in paragraph 159, 
 circular 503, revised, denned. (T. D. 21558; August 30, 1899.) 
 
 Thirty days' deposits prima facie taxable: 
 
 Though difficult to make an inflexible time limit in such cases, yet it is held 
 that articles deposited in cold-storage warehouse for thirty days or more are 
 considered as prima facie liable to tax as goods held for storage, and not pri- 
 marily for preservation. (T. D. 21783; November 21, 1899.) 
 Rectifiers — Special tax. 
 Blackberry cordial: 
 
 The Commissioner concurs in the view that the producers of blackberry cordial, 
 fortified with wine and flavored with blackberry, being required to pay special, 
 tax on rectification are not liable for stamp tax on their product, under either 
 section 3328, or Schedule B, act of June 13, 1898. (T. D. 495; March 31, 1902. ) 
 Blackberry wine and cordial: 
 
 " Blackberry wine " and "blackberry cordial" produced from grapes grown in 
 the United States, fortified with spirits and flavored with blackberry, held to 
 be a product of rectification, but not liable to stamp tax under section 3328, 
 Revised Statutes. The "blackberry wine" so produced liable to stamp tax 
 under Schedule B, act of June 13, 1898. (T. D. 495; March 31, 1902.) 
 Brands in spiral form prohibited: 
 
 A person who manufactures a medicine by mixing with alcohol roots and herbs, 
 and sells such compound (bitters) under a label and stamp as a proprietary 
 medicine, is not required to pay a special tax therefor as a rectifier. (T. D. 
 46; February 19, 1900.) 
 
 A special-tax stamp held by a corporation as a liquor dealer can not cover the 
 same business carried on by any other person upon the ground that he had 
 been a stockholder in the corporation at the time of its dissolution. (T. D. 
 45; February 17, 1900.) 
 
 Collectors are advised to notify rectifiers of liquor that brands in spiral form are 
 no longer to be used on rectifiers' packages of spirits. (T. D. 721; November 
 24, 1903.) 
 
161 
 
 Rectifiers— Special tax— Continued. 
 Exemption restricted to druggists: 
 Special tax as a rectifier required because of the recovery by a pharmaceutical 
 still of alcohol used in extracting ginger from ginger root. No exemption from 
 liability for setting up a still and reclaiming alcohol by means thereof, except 
 in the case of druggists who use distilled spirits or wines in combination with 
 drugs in the preparation of their medicines, who are permitted to recover, by 
 means of a still, this alcohol for the sole purpose of using it again in the prep- 
 aration of their medicines. Stills should be registered. (T. D. 619; Janu- 
 ary 17, 1903. ) 
 
 Instructions as to certain compounds: 
 
 A manufacturer of wine from grapes who, by adding other materials, makes a 
 spurious, imitation, or compound liquor for sale is liable as a rectifier; also 
 liable under section 3449, Revised Statutes, in removing wines under false 
 names. (T. D. 477; February 26, 1902.) 
 
 Any rectifier who is detected in filing a false notice as to the dumping of spirits 
 for rectification, when the spirits are not actually in their possession and on 
 their premises, should be promptly reported as in violation of the law and of 
 the regulations of the Internal-Revenue Service. (T. D. 455; January 2, 1902.) 
 
 Collectors are instructed that circular ruling 55 was not intended as authorizing 
 the detention of any of the compounds, to which it refers, that were put upon 
 the market, unstamped, prior to the issuance of the same. (T. D. 88; April 5, 
 1900.) 
 
 Manufacture of prune juice: 
 As to the manufacture of prune juice, it is held that where the amount of proof 
 spirits added exceeds 10 per cent of the whole quantity of the fruit juice and 
 spirits combined ' ' this office requires the product to be stamped as a compound 
 alcoholic liquor, and the person making the mixture is required to pay special 
 tax and otherwise qualify as a rectifier of spirits." (T. D. 313; March 28, 1901. ) 
 
 Manufacturers of adulterations or compounds as rectifiers: 
 Instructions are given that manufacturers of so-called ciders, consisting of com- 
 pounds or adulterations of wines or spirits, with various fruit extracts to 
 flavor the mixture or adulterations, thereby producing so-called cider, should 
 be required to qualify as rectifiers and place their product in merchantable 
 packages, marked, stamped, and branded as rectified spirits. (T. D. 55; 
 March 1, 1900. ) 
 
 Rectification of blackberry cordial: 
 The special tax of a rectifier and liquor dealer is not required to be paid for the 
 manufacture and sale of blackberry cordial composed of blackberry juice and 
 water with the addition of cloves, cinnamon, sugar, and a sufficient quantity 
 of alcohol to prevent fermentation, if this cordial is sold only under a label 
 holding it out as a remedy for disease and is sold in good faith for medicinal 
 use only. (T. D. 57; March 3, 1900. ) 
 
 Rectification of imitation spirits: 
 
 , The production of imitation, spurious, or compound liquors containing distilled 
 spirits, to be sold as either cider or bounce, is held to be rectification. See 
 also decision No. 20, on ciders. (T. D. 48; February 20, 1900.) 
 
 Rectifier's special stamp redemption: 
 As to whether or not the product of "blackberry wine" and "blackberry cor- 
 dial" should be required to pay special tax, the Commissioner holds that the 
 articles in question are to be treated in the first instance as the product of recti- 
 
 31331—05 11 
 
162 
 
 Rectifiers — Special tax — Continued. 
 Rectifier's special stamp redemption — Continued. 
 
 fication and put up in merchantable packages and reported on Form 237, after 
 which the barrels containing same are to be marked, branded, and stamped 
 with stamp for rectified spirits. (T. D. 495; March 31, 1902.) 
 Claims for rectifier's sfecial-tax-stamp redemption should be prepared in con- 
 formity with the ninth paragraph of circular 568, which is as follows: " When 
 the special taxes are collected for other than the current year, the collector 
 
 will issue stamps of 'Series ,' writing across the face thereof, and also 
 
 across the stubs, in red ink, ' Issued , 19 — , for the last months 
 
 of the special-tax year ended June 30, 19 — ,' signing the same in his official 
 capacity." Exactly the same instructions have been given from year to year 
 since 1873-74 in circulars relating to special-tax stamps for the coming fiscal or 
 special-tax year. 
 
 Receivers and assignees- — Special tax. 
 
 Receivers and assignees of firms and corporations are entitled to continue busi- 
 ness under special-tax stamps issued to these firms and corporations without 
 paying additional special tax. No special tax is required of them for sales 
 made in obedience to mandates of court. (T. D. 316; March 30, 1901.) 
 
 The bonds of receivers or trustees appointed by the court are liable to tax on and 
 after July 1, 1901, under the war-revenue act, as amended March 2, 1901. 
 (T. D. 378; July 10, 1901.) 
 
 Records of collectors. 
 
 Changes in records as to stamp sales: 
 Collectors are advised that the act of March 2, 1901, imposes new rates of tax on 
 beer, cigars, and cigarettes, allowing a discount on all sales on all tobacco and 
 snuff stamps, and requiring changes in the records relating to the sales of 
 stamps to meet the changes in the law. (T. D. 360; June 18, 1901.) 
 
 Record of stills: 
 With respect to records of stills "set up" in each district, no matter for what, if 
 for any, purpose used, the object of record No. 115 is to secure in convenient 
 form the location and the name of the owner. When a record is made in No. 
 115 of the original registry, no record need be made of subsequent registries, as 
 "for use" and "not for use," unless there is a change either of owner or 
 location. (T. D. 337; May 2, 1901.) 
 
 Record 39 revised: 
 Collectors are advised to make requisition for the revised record 39 and revised 
 Form 45, in order that they might be utilized, commencing with the month of 
 July, 1901, in making monthly returns in pursuance of existing regulations. 
 (T. D. 353; June 3, 1901.) 
 
 Records as to daily sale of beer: 
 Records Nos. 3, 5, and 7, relating, respectively, to the daily sale of beer, cigar, 
 and tobacco stamps, and record No. 11, relating to cigar manufacturers' 
 accounts, have been revised. The present records, with proper changes in 
 headings, will be used until the revised records are ready for distribution. 
 (T. D. 366; June 22, 1901.) 
 
 Records of special tax: 
 Special-tax records are not among those records which the regulations contem- 
 plate may be furnished to a State court upon an order of the court. They are 
 made under compulsion of law only with a view to collection of revenue for 
 the United States, and it has been uniformly held that to allow copies thereof 
 to be furnished for use against the special-tax payer in a case not arising under 
 
163 
 
 Records of collectors— Continued. 
 Records of special tax — Continued. 
 
 the laws of the United States, and in which the Government of the United 
 States is not interested, is contrary to public policy and not to be permitted. 
 (T. D. 766; March 23, 1904.) 
 
 Redemption of stamps. 
 
 Amendatory acts as to redemption of stamps: 
 
 Congress passed an act to amend the act of May 12, 1900, authorizing the Com- 
 missioner of Internal Revenue to redeem or make allowance for internal- 
 revenue stamps, approved June 30, 1902, and an act to amend sections 3362 and 
 3394 of the Revised Statutes of the United States relating to tobacco, approved 
 July 1, 1902; and the same were promulgated by the Commissioner for the 
 information of all concerned. (T. D. 544; July 8, 1902.) 
 * Conformance to act of 1901 necessary: 
 
 Manufacturers of tobacco and snuff are confined in the procurement of discount 
 on stamps, in the redemption of stamps, and the reduction or drawback on 
 taxes to the methods and limitations specifically provided in the act of March 
 2, 1901, and such methodsmust be strictly pursued. (T. D. 341; May 7, 1901.) 
 
 Adhesive documentary and proprietary, or other revenue stamps, should not be 
 included in or presented with claims for the redemption of imprinted docu- 
 mentary stamps. (T. D. 361; June 18, 1901.) 
 Documentary and proprietary must be not less than $2 in quantity: 
 
 In accordance with Circular 596, stamps that are not in the same condition as 
 when issued will not be redeemed unless their condition is satisfactorily 
 accounted for. Documentary and proprietary stamps can be redeemed only 
 ■when presented in quantities of $2 or more face value, and no claim for the 
 redemption of or allowance for such stamps can be allowed unless presented 
 prior to July 1, 1904. (T. D. 704; October 1, 1903.) 
 Imprinted checks and drafts not returnable: 
 
 Imprinted checks and drafts can not now be returned to the owners after 
 redemption of the stamps thereon, and such instruments now on hand must 
 after the redemption of the stamps, be destroyed in pursuance of the act of 
 February 26, 1902. (T. D. 692; August 27, 1903.) 
 Proof of ownership necessary to redemption: 
 
 When claims for the redemption of stamps are presented by any person or firm 
 other than the one for whom the order for imprinting was issued and whose 
 name or title does not appear upon the papers on which the stamps are 
 imprinted, the claimant, in addition to the certificate of the collector and 
 deputy collector aforesaid, must satisfactorily establish the fact of ownership 
 of the stamps and furnish a certificate of sale by each owner of them from 
 the time of their purchase from the person or firm from whom the order for 
 imprinting was issued. (T. D. 305; March 22, 1901. ) 
 Purchases from bank customers: « 
 
 Banks or stationers may purchase imprinted stamps which they procured and 
 sold to their customers and, as the bona fide owners thereof, present claims in 
 their own names for the redemption of such stamps without regard to the 
 number purchased from such customer. (T. D. 359; June 18, 1901.) 
 Redemption of bank claims, etc.: . 
 
 In all cases where claims are made by banks or stationers for the redemption of 
 stamps, it will be necessary, in addition to evidence now required in support 
 of claims, for each claim to be accompanied by a certificate duly signed by the 
 party from whom the stamps were purchased, setting forth the absolute sale 
 
164 
 
 Redemption of stamps — Continued. 
 
 Redemption of bank claims, etc, — Continued. 
 
 and transfer of said stamps to the claimant; also a schedule prepared by the 
 claimant showing, as to the stamps purchased from each customer, the name 
 of the person from whom the stamps were purchased, the date of order upon 
 which they were imprinted, in whose favor the order was issued, the name of 
 the collector who issued the same, and of the contractor who imprinted the 
 stamps, and the number of stamps in each lot purchased. (T. D. 361; June 
 18, 1901.) 
 Redemption of retail and malt liquor dealers' stamps: 
 
 The business of a retail dealer in malt liquor and that of a retail liquor dealer 
 are entirely separate. Therefore, if a person be a retail malt-liquor dealer 
 from the 1st of July for only a few days in that month, his special tax liability 
 covers the entire year, and if, in the same month of July, he engage in the sale 
 of distilled spirits his special tax liability would be that of a retail liquor 
 dealer for the same year. The redemption of his special-tax stamp as a retail 
 dealer in malt liquor does not obviate his paying special tax as a retail liquor 
 dealer for the same period. (T. D. 415; September 30, 1901.) 
 Repeal of stamp tax on checks, etc.: 
 
 The redemption of documentary and imprinted stamps was ordered upon the 
 repeal of the stamp tax on checks, act of March 2, 1901, and went into effect 
 in pursuance of instructions issued March 22, 1901 (circular No. 596), relative 
 to the redemption of documentary and proprietary stamps. (T. D. 403; 
 August 13, 1901. ) 
 Return of instruments to owners: 
 
 Upon application for the cancellation of imprinted checks as to the allowance of 
 claims for redemption, the Commissioner held, after careful consideration, 
 that, under existing law, it would be impossible to return the instruments to 
 the owners, but the office would proceed to consider the claims for redemption, 
 refunding to owners amounts due by reason of stamps imprinted and recom- 
 mending to Congress the passage of a law authorizing the return of drafts and 
 checks to claimants and owners. (T. D. 403; August 13, 1901.) 
 Refilling bottles prohibited. 
 
 The attention of collectors and revenue agents is called to the provisions of sec- 
 tion 6, act of March 3, 1897, prohibiting persons engaged in the sale of distilled 
 spirits from reusing a bottle for the purpose of refilling the same without 
 removing and destroying the stamp previously fixed to such bottle, the pen- 
 alty for a violation of the law being not less than one hundred dollars nor 
 more than one thousand dollars, and imprisonment for not more than two 
 years in the discretion of the court, together with a forfeiture of the spirits to 
 the United States. (T. D. 696; September 19, 1905.) 
 Reduction of spirits in packages. 
 
 The regulations permitting reduction of spirits contained in the distiller's origi- 
 nal package to a proof -not less than 90 per cent not applicable to imported 
 spirits, which latter may be reduced in proof on making change of package on 
 premises of wholesale liquor dealer. (T. D. 778; April 19, 1904.) 
 Redaction of spirits in original packages: 
 
 The regulations permitting the reduction of distilled spirits in the original pack- 
 age to a proof not less than 90 per cent by the simple addition of water (Cir- 
 culars 536 and 542) have no application to imported spirits produced in a 
 foreign country, although the reduction in the original package may be made 
 under the provisions of circular 542 in case of reimported domestic spirits. 
 (See T. D. 21854.) (T. D. 778; April 19, 1904.) 
 
165 
 
 Refunding internal-revenue stamps. 
 
 Claims for refunding amounts used in error or excess: 
 
 In all claims for the refunding of amounts paid for adhesive documentary or 
 proprietary stamps used in error or in excess it should be clearly stated, under 
 oath, who paid for the stamps, whether they were purchased at a discount 
 or at the full face value, and whether the party in whose name the claim is 
 made has been reimbursed for the stamps by any person or persons. * * * 
 (T. D. 20875; March 16, 1899.) 
 Commissioner's discretionary authority: 
 
 The Attorney-General, in opinion rendered August 19, 1899, as to the power of 
 the Commissioner to redeem unused documentary stamps, holds that "in car- 
 rying out the purposes of the war-revenue act, the Commissioner, with the 
 approval of the Secretary of the Treasury, has authority, in his discretion, to 
 cause an unused documentary stamp in the hands of a purchaser, to be 
 redeemed." This power, though not expressly given, results from the great 
 discretion conferred upon the Commissioner to make such rules and regula- 
 tions as are needful for the proper enforcement of the war-revenue act. (T. D. 
 21560; August 31, 1899.) 
 Refunding receipts: 
 
 Receipts on Form 1, given to taxpayers at the time of paying for stamps, should 
 accompany claims for refunding, or their absence accounted for satisfactorily. 
 In claims for the refunding of amounts paid for documentary stamps used in 
 error or in excess, the stamps must accompany the claims, or proof be furnished 
 showing that the stamps have been destroyed. Where, owing to the denom- 
 ination of the stamps used, the exact amount of them, used in excess, can not 
 be removed from the instrument, a greater amount of stamps should be 
 removed in the presence of a revenue officer and other stamps substituted to 
 pay the tax. (T. D. 21705; October 25, 1899. ) 
 
 Regulations prescribing the manner of canceling stamps have the force of law 
 and must be specifically followed. (T. D. 21855; December 18, 1899.) 
 Refunding* stamps and requisitions: 
 
 Requisitions and sales of tobacco, snuff, and beer stamps should be made in 
 amounts sufficient for a thirty days' supply, series of 1902, beginning on and 
 after July 1, 1902. (T. D. 529; May 26, 1902.) 
 Claims on Form 46: 
 
 Claims for the refund of amounts paid for stamps on hand July 1, 1902, and 
 affixed to articles which have not been removed from the place of manu- 
 facture, or customs bonded warehouse, should be made on Form 46. (T. T>. 
 536; June 18, 1902.) 
 Imprinted instruments returnable on request: 
 
 After the redemption and cancellation of revenue stamps imprinted upon checks, 
 drafts, and other instruments, the imprinted instruments may, in pursuance 
 of the joint Congressional resolution approved February 26, 1902, be returned 
 upon the request, and at the expense and risk of their owners, by either freight 
 or express. (T. D. 509; April 25, 1902.) 
 Refunding 1 taxes. « 
 
 Claims under amendatory act, 1901: 
 
 Claims for refunding of legacy tax paid since the passage of- the amendatory act 
 of March 2, 1901, will be considered. The act is not retroactive in its effect, 
 and no taxes collected under the law as it existed prior to the act of March 2, 
 1901, can be refunded, unless the courts decide "that they were illegally col- 
 lected. (T. D. 336, April 30, 1901.) 
 
 Claims for the refund of taxes under section 3228, Revised Statutes, must be 
 presented on or before March 28, 1900. (T. D. 423; October 24, 1901. ) 
 
166 
 
 Refunding taxes- — Continued. 
 
 Refunding documentary stamps on export bills: 
 
 The act authorizing the refunding of amounts paid for stamps used on export 
 bills of lading was approved June 27, 1902, and the act of May 12, 1900, which 
 provided for the allowance for or the redemption of documentary and other 
 stamps, if presented within two years after the purchase of the stamps from 
 the Government, was amended June 30, 1902, so as to extend the allowance to 
 any claim presented prior to July 1, 1904. Under this amendment to the act 
 o'f March 12, 1902, no claim for the refunding of an amount paid for docu- 
 mentary stamps used on export bills of lading will be entitled to consideration 
 unless presented prior to July 1, 1.904. (T. D. 819; August 24, 1905.) 
 Tax on export bills under act of 1900: 
 
 Claims for refunding tax paid on export bills of lading, under the act of May 12, 
 1900, can not be considered, unless presented within two years after the pur- 
 chase of the stamps from the Government, but recommendation has been 
 made to Congress that the act be so amended as to provide for the allowance of 
 such claims within two years from the date of the amendment, or after the 
 stamps were affixed. (T. D. 452; December 27, 1901.) 
 
 Refunding stamp tax. , 
 
 Authority for refunding stamps used on manifests lacking: 
 
 Claims for refunding documentary stamps used on manifests for clearances of 
 vessels for foreign ports are rejected for the reason that the amount was legally 
 collected, and there is no authority either in the decisions of the courts or in 
 the acts of Congress to refund same. (T. D. 597; November 24, 1902. ) 
 Certificate required of collector: 
 
 In refunding documentary stamp taxes, the collector will make the usual certi- 
 ficate required of collectors in claims for the refunding of amounts paid for 
 documentary stamps, and forward the claims to the Commissioner of Inter- 
 nal Revenue, who will have them examined and disposed of as claims arising 
 under the act of May 12, 1900, are now disposed of. (T. D. 546; July 8, 1902.) 
 Claims for refunding limited to two years: 
 
 Collectors are informed that the Bureau of Internal Revenue will consider claims 
 for the refunding of amounts paid for proprietary stamps affixed to goods on 
 hand in the place of manufacture July 1, 1902, or in the customs bonded 
 warehouse on or after July 1, 1902, provided that the claim- is presented 
 within two years after the purchase of the stamps from the Government, and 
 that the stamps are of the aggregate face value of $2 or more; and provided 
 further that the stamps are removed from the articles in the presence of a 
 revenue officer and forwarded with the claim; or, in case it is impracticable to 
 remove the stamps, that the revenue officer certifies that he has written across 
 the face of each stamp the words, "Claim for refunding filed." (T. D. 536; 
 June 18, 1902.) 
 Registry of leaf tobacco. 
 Requirement as to registration: 
 
 On and after July 1, 1902, every manufacturer of cigars, manufacturer of tobacco, 
 dealer in leaf tobacco, and peddler of tobacco is required by law (section 26, 
 act of October 1, 1890) to register with the collector of internal revenue for 
 the district in which such business is carried on his name, style, place of 
 business, trade or business, and the place where such trade or business is 
 carried on. (T. D. 505; April 17, 1902.) 
 Registry of cigar manufacturers: 
 
 Every manufacturer of cigars, manufacturer of tobacco, dealer in leaf tobacco, 
 and peddler of tobacco is, however, required by law (section 26, act of October 
 
167 
 
 Registry of leaf tobacco— Continued. 
 Registry of cigar manufacturers — Continued. 
 
 1, 1890) to register with the collector of internal revenue for the district in 
 which such business is carried on his name, style, place of business, trade or 
 business, and the place where such trade or business is carried on. (T. D. 
 505; April 17, 1902.) 
 
 Renovated butter. 
 
 Issuance of inspection certificates: 
 The Secretary of Agriculture, construing the act of April 24, 1904, states that 
 inspection certificates are issued by dairy inspectors of the Department of 
 Agriculture for all exports of renovated butter. (T. D. 841; November 7, 
 1904.) 
 
 Power of Commissioner to enforce regulations: 
 Section 3447, Revised Statutes, provides that the Commissioner may make regu- 
 lations not otherwise provided for as may become necessary by reason of any 
 alteration of law. Adding renovated butter to the list of taxable articles is an 
 alteration in the internal-revenue law. The power given to the Commissioner 
 is very sweeping. The regulations which have been issued in regard to reno- 
 vated butter seem to be necessary for the proper enforcement of the law and 
 prevention of fraud on the revenue. (T. D. 847; December 15, 1904.) 
 
 Regulations made by Secretary of Agriculture: 
 The Secretary of Agriculture, construing paragraph 22, Regulations No. 9, Sup- 
 plement No. 1, regulating the branding, marking, and packing of renovated 
 butter, points out that the rules contemplate such markings as will insure the 
 commercial identity of the product for the benefit alike of purchasers and con- 
 sumers. The permanency of the regulations is of great importance, and it is 
 insisted that jobbers and wholesalers shall handle the product only in the 
 original manufacturers' packages and dispose of it without breaking the pack- 
 ages for any purpose or in any way changing the form and markings. (T. D. 
 654; April 15, 1903.) 
 
 Reports of collectors. 
 
 Accounts for property seized: 
 Collectors are reminded, in regard to the seizure and sale of property. forfeited 
 under internal-revenue laws or distrained for unpaid taxes, that all seized 
 property placed in their custody must be fully accounted for, and that exces- 
 sive bills for expenses, due to negligence and disregard of the regulations in the 
 care and final disposal of the same, will be disallowed. (T. D. 209; Septem- 
 ber 6, 1900.) 
 
 Confessions under duress void: 
 Written confessions and admissions of violations of law secured under duress by 
 internal-revenue officers, and offers of compromise obtained by solicitation or 
 threats, will be held by the Commissioner to be void, and officers who are 
 instrumental or concerned in securing such confessions and offers in compro- 
 mise by the means indicated will be held to have disregarded the regulations 
 of this Office and will be dealt with accordingly. (T. D. 206; August 30, 1900. ) 
 
 Delay of reports inhibited: 
 In view of the embarrassment caused by the lack of prompt and full reports by 
 officers of the Bureau of Internal Revenue, when seizing taxable articles 
 shipped, for violations of law, it is ordered that hereafter there shall be no 
 delay on the part of collectors in making their reports on Form 117, with 
 whatever statement of the cause of seizure is necessary, to enable the Com- 
 missioner to know the nature of the offense for which the property is held for 
 forfeiture. (T. D. 147; June 5, 1900.) 
 
168 
 
 Reports of collectors — Continued. 
 
 Distraint warrants must be reported separately: 
 The issuance of "omnibus" warrants of distraint is prohibited. Distraint war- 
 rants should be separate, and prompt returns should be made by deputies in 
 every case, in pursuance of directions from collectors. (T. D. 135; May 28, 
 1900.) 
 Liabilities outstanding require notice: 
 
 When the surety on a bond is a surety company, notice should be given by mail 
 to the local representative of the company demanding payment of the out- 
 standing indebtedness of the principal. Collectors will understand, however, 
 and will so advise the local representative of the bonding company, that any 
 failure to receive notice of an outstanding liability in no way affects the legal 
 liability of the surety on the bond under the act of August 13, 1894. (T. D. 
 192; August 3, 1900. ) 
 
 Penalty monthly reports : 
 Instructions relating to collectors' reports on Form 8 are stated in Internal- 
 Revenue Circular No. 569, appertaining to reports per month of all penalties 
 collected on account of post-stamping of instruments. (T. D. 124; May 11, 
 1900. ) 
 
 Eeports required for each quarter: 
 Collectors are instructed by the Commissioner to see that the proper entries are 
 made in book 25 with respect to all instruments presented for action under 
 section 13, act of June 13, 1898, and that a report is made from such record for 
 each quarter. Collectors are also advised that they are not authorized to 
 remit the penalty in such cases, unless the instrument or document is presented 
 for tbteir action within twelve calendar months after the making or issuing 
 thereof. (T. U. 10; January 8, 1900.) 
 
 Taxes reported uncollectible: 
 As to taxes reported as uncollectible, collectors are advised that it is their duty 
 to use the same diligence to collect a tax after it has been abated as uncollect- 
 ible, or as in suit, as before abatement. (T. D. 60; March 6, 1900.) 
 
 Violations of law to be promptly reported: 
 Collectors are requested to report promptly on Form 166 as soon as the violation 
 of law is discovered, and to state, in accordance with instructions at the foot 
 of page 2 of said form, the date of return on Form 11, if any has been made, or 
 the list on which the tax will be reported for assessment. (T. "D. 176; July 
 12, 1900.) 
 
 Requisitions for stamps. 
 New rate of tax and distribution of stamps: 
 Collectors are advised by the Commissioner that requisitions for and sale of beer, 
 tobacco, and snuff stamps, denoting the new rate of tax on and after July 1, 
 1902, should not be made before midnight of June 3, 1902, and collectors are 
 especially requested to so distribute said stamps to manufacturers and brewers 
 as to meet their immediate requirements and avoid inconvenience to taxpayers, 
 etc. (T. D. 529; May 26, 1902.) 
 Requisitions for thirty days' supply: 
 Collectors are directed by circular letter dated May 26, 1902, to immediately 
 make up and forward their requisitions for a thirty days' supply of tobacco, 
 snuff, and beer stamps and stamps for cigarettes weighing more than 3 pounds 
 per thousand, series of 1902, for delivery to manufacturers and brewers on and 
 after July 1, 1902. (T. D. 529; May 26, 1902.) 
 
169 
 
 Requisitions for stamps — Continued. 
 Requisitions made by June IS, 1901: 
 
 Collectors are directed to make requisitions for the usual supply of beer, cigar, 
 and small cigarette stamps of the new issue as early as June 15, for sale to 
 brewers and manufacturers on and after July 1, and all beer, cigar, and small 
 cigarette stamps of present issue in the hands of collectors July 1 should be 
 returned to this Office, where -the value of the same will be credited in col- 
 lectors' accounts, and all such stamps in the hands of brewers and manufac- 
 turers on that date may be redeemed under existing provisions of law as stamps 
 for which they have no use. (T. D. 354; June 3, 1901.) 
 Spoiled stamps: 
 
 The Commissioner is authorized, under the act of March 2, 1901, to redeem such 
 stamps only as "have been spoiled, destroyed, or rendered useless or unfit for 
 the purpose intended, or for which the owner may have no use, or which, 
 through mistake, have been improperly or unnecessarily used, or where the 
 rates or duties represented thereby have been excessive in amount, paid in 
 error, or in any manner wrongfully collected." (T. D. 341; May 7, 1901.) 
 Stamps on fermented liquors: 
 
 The Commissioner directs that on and after July 1, 1901, all stamps used for 
 denoting the tax upon fermented liquors shall be canceled by perforations to 
 be made in the form of the name of the person, firm, or corporation by whom 
 such liquors were made, or some suitable abbreviation thereof, or of the initial 
 letters of the name and the date when canceled, which date may be indicated 
 by numerals, if preferred, signifying the number of the month and the day. 
 (T. D. 347; May 22, 1901.) 
 
 Requisitions for snuff stamps. 
 
 Eequisitions and sale of stamps for snuff, denoting the new rate of tax, can not 
 be made before midnight of June 30, 1902, and collectors are required to so 
 distribute said stamps to manufacturers as to avoid inconvenience to taxpayers 
 and the necessity for telegraphing to this Office for an additional supply of 
 stamps. (T. D. 529; May 26, 1902.) 
 
 Retailing: liquor — Special tax. 
 
 Boats not engaged in carrying passengers: 
 Collectors are instructed to refuse to issue a special-tax stamp for retailing liquors 
 on boats that are not regularly engaged in the business of carrying passengers. 
 This ruling conforms to the joint resolution of Congress of May 8, 1876— Com- 
 pilation 1900, p. 114. (T. D. 663; May 23, 1903.) 
 
 Excursion boats and excursion trains: 
 Ruling 663 was not intended to prohibit the issuance of special stamps for retail- 
 ing liquors on excursion boats. - The Commissioner holds that excursion boats 
 and excursion railway trains are engaged in the business of carrying passen- 
 gers within the meaning of the joint resolution of Congress of May 8, 1876, on 
 which ruling 663 is based. Although they are not regular boats or regular 
 trains, their business is the business of, carrying passengers from one place to 
 another. (T. D. 671; June 23, 1903.) 
 
 Ke tailing liquor on Government reservations: 
 The attention of collectors is called to the ruling of the Commissioner of the 
 General Land Office to the effect that it is unlawful for any person or associa- 
 tion of persons to occupy or use any public lands within the boundaries of any 
 forest reserve established under section 24 of the act of March 3, 1891, except- 
 ing for purposes of mining and prospecting for minerals, without special per- 
 mit from the Secretary of the Interior; and that following the past policy of 
 
170 
 
 Retailing liquor — Special tax — Continued. 
 
 Betailing liquor on Government reservations — Continued. 
 
 the Department in this regard, permit will in no case be granted for establish- 
 ing or conducting a saloon, or for the sale of intoxicating liquors, upon public 
 lands within a forest reserve. (T. D. 694; September 14, 1903. ) 
 
 Retail liquor dealer. 
 
 Retail liqnor dealer and wholesale orders: 
 
 A retail liquor dealer can not lawfully fill and ship an order for liquor amounting 
 to five gallons or more even though he fill from time to time by shipping less 
 than five gallons. A violation of this regulation will involve him in a special- 
 tax liability as a wholesale liquor dealer. (T. D. 655; April 15, 1903.) 
 Sale of warehouse certificate: 
 
 If in a case where the purchase clause warehouse receipt was sold in the place 
 of business of the purchaser, a partial payment being made at the time, and 
 the remainder of the purchase money is paid at the home office of the seller 
 where he holds the special-tax stamp of a wholesale liquor dealer, it is held 
 that the sale of the packages specified is completed, being covered by the 
 special-tax stamp held there. The seller is not involved in a special-tax 
 liability by the fact that the receipt was delivered elsewhere to the purchaser. 
 (T. D. 643; March 11, 1903.) 
 Selling liquor after selling business: 
 
 A person who purchases the business of a retail liquor dealer, leaving the latter 
 in charge to continue the sales of liquor, is required to make sworn return and 
 pay special tax .himself as the principal and owner of the business, and to take 
 out the special-tax stamp in his own name. The special-tax stamp of the 
 retail liquor dealer who sold out the business to him can not be made to 
 answer for him, even though the retail liquor dealer who has thus sold out 
 his business is left in charge of it by the purchaser and continues to sell 
 liquors under his special-tax stamp at the place of business thus sold out. 
 (T. D. 813; August 1, 1904.) 
 Selling out business — Special-tax stamp: 
 
 Under section 3237, Revised Statutes, the special tax is paid by the retail liquor 
 dealer for the entire year beginning July 1, and no rebate is allowed by any 
 provision of the law on account of a discontinuance of business before the end 
 of the year for which the special-tax stamp is issued. (T. p. 830; October 4, 
 1904.) 
 
 Returns — Special tax. 
 
 Brokers failure to make returns: 
 It is for the failure of a broker, class 2, to make the sworn return prescribed by 
 law, and not for failure to pay the special tax, that the statute (section 3176, 
 Rev. Stat. ) imposes the 50 per cent penalty. (T. D. 315; March 28, 1901. ) 
 Oath required to Form 11: 
 A person intending to engage in a business for which special tax is required to 
 be paid must himself sign and swear to the return, Form 11. The return is 
 not to be accepted when signed and sworn to by some other person as 
 "agent" for the special-tax payer. (T. D. 49; February 27, 1900.) 
 Returns by mail: 
 When a return is made and placed in the United States mails, properly addressed, 
 and postage paid, in time to reach the collector or deputy collector within the 
 calendar month in which the liability begins penalty does not accrue. (T. D. 
 424; October 24, 1901.) 
 
171 
 
 Returns— Special tax— Continued. 
 Returns of legacy tax: 
 
 1. Advancements are not subject to tax under the war-revenue act unless they 
 
 are debts due the estate at the time of the testator's death. 
 
 2. Remainders vest in the remainder-men specified in the will who are living at 
 
 the time of the testator's death, subject, however, to be divested by the 
 subsequent birth of other remainder-men, or by the exercise of a power 
 of appointment conferred by the will. (T. D. 768; March 25, 1904.) 
 Beturns of manufacturers under oath: \ 
 
 Hereafter, in all cases where the regulations require that returns of manufac- 
 turers of, or wholesale dealers in, oleomargarine shall be made under oath, 
 such returns must be signed and sworn to by the manufacturer, or wholesale 
 dealer, if an individual, and, if a firm, by some member of the firm; and if 
 the manufacturer or wholesale dealer be an incorporated company, then by 
 the president, vice-president, secretary, or treasurer of the corporation, and 
 such officer or .officers must be authorized by proper act of the corporation to 
 so sign and swear to such returns. (T. D. 264; January 11, 1901.) 
 Reversionary interests. 
 
 1. Reversionary interests which are vested are taxable at once. 2. Tax may be 
 paid on reversionary interests which are not vested at the option of the execu- 
 tor or other person having in charge the estate. The basis for determining 
 the tax in such cases, where the remainder will pass to issue, will be the num- 
 ber of such issue living. Where there is no issue, the reversionary interest 
 will be considered a part of the life estate for the purpose of determining the 
 legacy tax. (T. D. 383; July 20, 1901.) 
 Revenue-tax suits. 
 
 Suits for the recovery of revenue taxes: 
 Suits for the recovery of revenue taxes can be brought at any time, whether the 
 taxes have been assessed or not, and whether they are assessable or not. This 
 ruling is in accordance with the decision of the United States court in the case 
 of the "Dollar Savings Bank v. United States." (T. D. 676; July 7, 1903.) 
 
 s. 
 
 Sake — Revenue tax. 
 
 Sake, a fermented beverage produced from rice, is regarded as a fermented 
 liquor and subject to tax under internal-revenue laws. (T. D. 466; February 
 1, 1902.) 
 Sample packages. 
 Cigars sent by mail or express: 
 
 As to the distribution of cigars, as samples, through the mail or by express, atten- 
 tion is directed to the first paragraph of regulations No. 8, revised July 1, 1903, 
 to the effect that a dealer in tobacco for the purpose of soliciting trade is not 
 privileged to repack any number of cigars in an unstamped box for transmittal 
 by mail, express, or other method of delivery to prospective customers, and 
 no provision is made by law or regulation for free samples of cigars or 
 cigarettes. (T. D. 731; December 18, 1903.) 
 
 The Commissioner holds that, when subdivision packages of smoking and chew- 
 ing tobacco were abolished by the regulations which went into effect July 1, 
 1903, and an exception was made in favor of fine cut, it was not contemplated 
 that this exemption should be construed as authorizing the putting up and 
 distribution, as free samples, of packages of fine-cut tobacco in unstamped 
 subdivisions. (T. D. 733; December 19, 1903.) 
 
172 
 
 Sample packages— Continued. 
 Samples forwarded for analysis: 
 Collectors are advised to exercise care in forwarding samples for chemical or 
 expert examination in the laboratory of the Commissioner's Office, owing to 
 the frequent lack of adequate marks of identification. All samples liable to 
 become the basis of legal proceedings should be sealed with a distinctive seal, 
 and should be labeled or marked in such'a way as to clearly identify them with 
 the larger quantity of material from which they were taken. (T. D. 803; June 
 28, 1904.) 
 Sample packages, manufactured tobacco: 
 The sending out of sample cases to agents or traveling salesmen, rilled with 
 unstamped packages of manufactured tobacco, is contrary to the law and the 
 regulations. The fact that such packages are intended for sample purposes 
 does not exempt them from tax. (T. D. 838; October 25, 1904. ) 
 Sales of tobacco. 
 Coupons in tobacco packages: « 
 
 The Supreme Court of the United States, Justice Brewer delivering the opinion 
 (October term, 1901),, 'held, as to coupons in packages of tobacco, that it is 
 within the power of Congress to prescribe that a package of any article which 
 it subjects to tax, and upon which it requires the affixing of a stamp, shall 
 contain only the article which is subject to the tax. (T. D. 525; May 21, 
 1902. ) 
 Conpons— Snuff packages — Statutory regulations: 
 The regulations provide that a manufacturer may place within his statutory 
 packages containing snuff small advertising cards, coupons, and certificates, 
 which do not materially increase the weight of the contents or the size of the 
 package, and whicfl are intended as an advertisement of his business and 
 which concern the manufacture and sale of his snuff and no other business. 
 (T. D. 573; August 28, 1902.) 
 Leaf tobacco — Sale by farmers : 
 A farmer or grower of tobacco may place his tobacco in the hands of a qualified 
 dealer in leaf tobacco, to be sold by him on commission, and such dealer must 
 sell the tobacco only to other qualified leaf dealers or to qualified manufac- 
 turers of tobacco or cigars, or to persons who buy leaf tobacco in packages for 
 export. (T. D. 497; April 7, 1902.) 
 Sales of stock — Stamp tax. 
 Power of stamp taxation long exercised: 
 The circuit court of the United States, southern district of New York, in United 
 States v. George C. Thomas (January 26, 1902), held that "from an early 
 period in the history of the national life the power has been exercised of 
 imposing a stamp duty upon personal obligations, certificates of stock of cor- 
 porations, bonds, notes, and similar securities discounted at banks," and that 
 at a later period, "upon similar obligations, as well as upon conveyances, 
 leases, mortgages, brokets' notes, or memoranda of sale of stock, bonds, goods, 
 or merchandise." (T. D. 468; February 4, 1902.) 
 Shares taxable after issue: 
 Shares of stock after issue, given or surrendered to the company, are taxable as a 
 transfer, and, when afterwards sold by the company, are taxable at the same 
 rate. (T. D. 217; September 26, 1900.) 
 Search, ■warrants. 
 Duty of United States commissioners: 
 The Attorney-General, in an opinion dated June 19, 1903, relative to United 
 States commissioners issuing search warrants, holds that the law imposes upon 
 
173 
 
 Search warrants — Continued. 
 Duty of United States commissioners — Continued. 
 
 United States commissioners the duty of issuing search warrants when prop- 
 erly applied for, although no compensation is provided therefor. Remedy in 
 case a commissioner refuses to issue a warrant is vested in court which appoints 
 him, under section 19 of the act of May 28, 1896 (29 Stat., 184), said refusal 
 being brought, on petition, to the notice of the court. (T. D. 670; June 23, 
 1903. ) 
 
 Seizure of spirits. 
 
 With regard to the seizure of spirits, the Commissioner holds that the law does 
 not require collectors to give any notice other than by publication, but decides 
 that, in order to obviate all grounds of complaint on this score, a copy of the 
 first advertisement for a claimant in such cases shall be sent to the shipper, if he 
 is known, or to his attorney, who may have been in correspondence with the 
 collector in regard to the seizure. (T. D. 585; September 30, 1902.) 
 
 Shipments. 
 
 Shipments to foreign customers: 
 Where a broker, or other person, receiving orders from a foreign customer for 
 whisky, wine, oleomargarine, or other articles for the sale of which special tax 
 is required to be paid, buys these articles and sells them on his own account 
 in the United States, consigning them here as the property of the foreign cus- 
 tomer to whom they are shipped, special tax is required to be paid for such 
 sales. (T. D. 728; December 12, 1903.) 
 
 Shipping tag — Distilled spirits: 
 As to a shipping tag that fails to cover up the entire stamp, but only that portion 
 which it is important to save, attention is called to regulation 7 (p. 127) , which 
 reads as follows: "The stamps, marks, and brands required by law and regu- 
 lations to be applied to casks and packages of distilled spirits are designed to 
 bear witness to the legality of the spirits which they cover, and they must not 
 be obscured in any manner, or covered by incasing the vessel bearing the same 
 in another, but must at all times be in such condition as to admit of ready 
 examination by revenue officers." The use of the tag described is denied to 
 the shipper. (T. D. 772; April 9, 1904.) 
 
 Shipping under fictitious brand: 
 Section 3449, Revised Statutes, is a revenue measure designed to assist in tracing 
 spirits removed without payment of tax. If spirits are put up under a fictitious 
 label and shipped or transported, they are liable to seizure. A dealer is not 
 liable to prosecution for selling such spirits by the bottle to parties who remove 
 the spirits. (T. D. 798; June 11, 1904.) 
 
 Snuff and cigars. 
 Computing value of stamps: 
 In computing the value of stamps affixed to packages of tobacco and snuff with 
 benefit of drawback under section 3386, Revised Statutes, the discount of 20 
 per cent provided by the act of March 2, 1901, must be made. (T. D. 307; 
 March 23, 1901.) 
 Sales prohibited when exposed outside stamped packages: 
 In pursuance of the provisions of sections 3363, 3366, 3374, and 3404, United 
 States Revised Statutes, internal-revenue officers are advised that when, "on 
 or after November 1, 1903, manufactured tobacco, snuff, cigars, or cigarettes 
 are found on the market exposed for sale outside of the original packages, the 
 same will be seized by the proper collector or deputy collector and the facts 
 
174 
 
 Snuff and cigars — Continued. 
 Sales prohibited when exposed outside stamped packages — Continued. 
 
 reported to this office and to the United States district attorney, with recom- 
 mendation for such action as may be deemed requisite." (T. D. 678; July 14, 
 1903.) 
 
 Snuff— Tax. 
 Discount to manufacturers: 
 The act of March 2, 1901, allows a discount to manufacturers on all sales of 
 tobacco and snuff stamps, and proper changes should be made in records 
 relating to the sale of stamps for the payment of tax according to the law 
 which takes effect on and after July 1, 1901. (T. D. 360; June 18, 1901.) 
 Discount not provided under act of 1901 : 
 No provision has been made in the act of March 2, 1901, for the redemption of 
 snuff stamps in the hands of manufacturers on June 30, 1901, for the purpose 
 of securing the discount of 20 per cent provided in section 4 of the act. (T. D. 
 341; May 7, 1901.) 
 Rebate on tax-paid factory packages: 
 A manufacturer who has original and unbroken stamped factory packages of 
 snuff on hand July 1, 1901, tax paid at the rate of 12 cents per pound, will be 
 entitled to a rebate of 2.4 cents per pound; but no rebate will be allowed on 
 goods sold after that date. (T. D. 327; April 18, 1901.) 
 
 Spirits, distilled. 
 
 Alcohol in soft beverages: 
 No limitation in internal-revenue laws with regard to alcoholic strength of 
 so-called "soft" beverages. Special tax is required to be paid for the sale of 
 any beverage containing distilled spirits, or wine, or malt liquor, unless the 
 quantity of alcohol is too small to come within the notice of the law. (T. D. 
 761; March 8, 1904.) 
 
 Caution stamps: , 
 
 Collectors are advised that, so long as internal-revenue officers act in good faith 
 in cases arising under section 3316, Eevised Statutes, amended, this office will 
 not intervene. All wholesale liquor dealers and rectifiers know what object 
 they have in view in adopting a device, especially when they style it a "cau- 
 tion stamp." They know how they may escape any possibility that the 
 device used should in any wise resemble or have the general appearance of an 
 authorized stamp. If they wish to see how near they may come to violating 
 the law without incurring its penalties, this office will give no assistance. 
 (T. D. 559; July 26, 1902.) 
 
 Excessive leakage: 
 As the question of excessive leakage depends largely on the circumstances under 
 which the loss occurs, no fixed rule can be established in such cases. In view, 
 however, of the allowance for loss provided in section 50, act of August 28, 
 1894, and the amendatory act of March 3, 1899, any loss ascertained upon a 
 regauge of a cask or package of a capacity of 40 or more wine gallons after the 
 expiration of sixty-four months- from date of original gauge which exceeds 20 
 proof gallons, or any loss found by such regauge of any cask or package of a 
 capacity of less than 40 wine gallons which exceeds 12 proof gallons, will be 
 reported immediately to the Commissioner of Internal Revenue, together with 
 all the facts in the case. (T. D. 534; June 10, 1902.) 
 
 Fruit and grain: 
 Collectors are instructed to exercise great care in segregating on said Form 22 
 the amounts derived from spirits distilled from fruit and spirits distilled from 
 
175 
 
 Spirits, distilled — Continued. 
 
 Fruit and grain — Continued. 
 
 grain and materials other than fruit. "You are instructed to examine your 
 retained Form 22 for July last and, in case of an erroneous return in the par- 
 ticular mentioned, to submit an amended abstract without delay." • (T. D. 
 565; August 13, 1902.) 
 Special tax. 
 
 Alphabetical list of taxpayers: 
 The alphabetical list of special-tax payers is required to be kept in pursuance of 
 Section. 3240, Revised Statutes, and Record 10, said section providing that 
 "each collector of internal revenue shall, under regulations of the Commis- 
 sioner of Internal Revenue, place and keep conspicuously in "his office, for 
 public inspection, an alphabetical list of the names of all persons who shall 
 have paid special taxes within his district, and shall state thereon the time, 
 place, and business for which such special taxes have been paid." (T. D. 
 846; December 14, 1904.) 
 
 Barley brew or bock ale nontaxable: 
 Barley brew or-bock ale, though having the appearance and flavor of a malt 
 liquor, is rather an imitation of a malt liquor than the thing itself, and, there- 
 fore, it is held that the beverage is not among those fermented liquors v 
 enumerated in section 3339, Revised Statutes of the United States, and that 
 therefore tax is not required thereon, nor the special tax of a dealer in malt 
 liquor for its sale, under the internal-revenue lefws of the United States. (T. 
 D. 690; August 12, 1903.) 
 
 Bay rim from Porto Bico: 
 When the tax of $1.10 per gallon has been paid for the distilled spirits contained 
 . in bay rum produced in Porto Rico and brought into the United States, drug- 
 gists and dealers therein are not required to pay special tax as liquor dealers 
 for selling this bay rum as a toilet preparation or cosmetic. (T. D. 812; July 
 18, 1904.) _ 
 
 Blackberry wine — Cider from apple juice: * 
 
 A manufacturer of blackberry wine does not come within the exempting provi- 
 sion of section 3246, Revised Statutes, unless the blackberries used by him in 
 making the wine were grown by himself, or gathered wild by himself or by 
 persons in his employ. There is no special tax, under the internal-revenue 
 laws, for the manufacture or sale of cider made from the juice of apples, though 
 fermented, if it is not changed into a compound liquor by the addition of dis- 
 tilled spirits or other alcoholic liquors. (T. D. 717; November 14, 1903.) 
 
 Commissions on beer: 
 The fact that a person receives a commission from the brewer on each case or 
 keg of beer for which he obtains an order does not involve him in special-tax 
 liability under the revenue laws. (T. D. 699; September 17, 1903.) 
 
 Entry of a club: 
 
 , In taking out a special-tax stamp in the name of a club, the entry of the club's 
 name merely is not sufficient. Not only should the name of the club be 
 entered, but the name of the person conducting it and making the sworn 
 return should be entered in record No. 10, together with the particular place 
 at which the club is located. (T. D. 629; February 16, 1903. ) 
 
 Express company's sales of liquor: 
 
 Where alcoholic liquor, shipped by express, is left on the hands of the express 
 company, the company may, to secure its charges thereon, dispose of each 
 
176 
 
 Special tax — Continued. 
 Express company's sales of liquor — Continued. 
 
 separate shipment at a single sale, without involving itself in special-tax lia- 
 bility under the internal-revenue laws; but this does not relieve from liability 
 under local prohibitory liquor laws. (T. D. 715; November 6, 1903. ) 
 Fermented liquor: 
 A person manufacturing for sale a fermented liquor, made from a substitute for 
 malt, must qualify for special tax as a brewer. (T. D. 646; March 31, 1903.) 
 form 11 for special-tax stamps, 1903: 
 Collectors are advised not to issue special-tax stamps for the special-tax year 
 ending June 30, 1903, until Form 11, properly filled out, and the money for 
 the stamps has been received; and the stamps must be issued in consecutive 
 order, the dates upon the stubs so indicating. (T. D. 504; April 16, 1902.) 
 Institute furnishing whisky to patients: 
 An institute is exempt from special tax as liquor dealer, when the whisky 
 administered to patients is combined with medicinal ingredients. (T. D. 639; 
 March 17, 1903.) 
 Liability under circular 6S6: 
 Druggists, confectioners, and others, selling soda-water drinks and adding spirits 
 or wine for flavoring, are not on that account liable to special tax as liquor 
 dealers under the terms of circular 636. (T. D. 620; January 20, 1903. ) 
 Light fermented malt liquor: • 
 Special tax is required to be paid for the sale of the beverage called " rikk," a 
 light fermented malt liquor, although its alcoholic strength is less than that of 
 ordinary lager beer and it is called "nonintoxicating." (T. D. 804; June 29, 
 1904. ) 
 Liquor sold for express charges: 
 The sale of liquor held by an express company to secure express charges for 
 shipment does not involve the company in liability for special tax, under the 
 • internal-revenue laws. (T. D. 715; November 6, 1903.) 
 Liquors bought at foreclosure sale: 
 Where a person at a foreclosure sale of liquors bids for them in order to save a 
 debt due him, and they are accordingly sold to him, he may sell these liquors 
 (as having been received by him in payment of the debt) under the exempt- 
 ing provision of the statute, without subjecting himself to special tax, if he is 
 not otherwise a dealer in liquors. (T. D. 688; July 30, 1903.) 
 Manufacturer of wine: 
 A manufacturer of wine can only sell at the place of manufacture, or at one 
 business office, without being required to pay special tax. (T. D. 849; Decem- 
 ber 29, 1904.) 
 Sale of grape juice after fermentation: 
 Persons who buy unfermented grape juice and sell it after it has undergone fermen- 
 tation are required to pay special tax as liquor dealers. They are not exempt 
 as manufacturers of wine under section 3246, Eevised Statutes. (T. D. 729; 
 December 17, 1903.) 
 Section 3233, Eevised Statutes — Record 10: 
 Record No. 10 is the register of special-tax payers in the collector's office, and 
 this office finds no warrant of law for countenancing any deviation from the 
 positive requirements of section 3233, Revised Statutes, that "every person 
 engaged in any trade or business on which a special tax is imposed by law 
 shall register with the collector of the district his name or style, place of red- 
 
177 
 
 Special tax — Continued. 
 
 Section 3233, Revised Statutes— Eecord 10— Continued. 
 
 dence, trade or business, and the place where such trade or business is to be 
 carried on," and "in case of a firm or company, the names of the several per- 
 sons constituting the same, and their places of residence, shall be so reg- 
 istered." (T. D. 821; August 30, 1904.) 
 
 Special tax for prior years: 
 When special taxes are paid for prior years, stamps of the current year must be 
 issued therefor, and not a receipt on Form 1. When such taxes have been 
 assessed on lists the duplicate charge can be removed by claim for release. 
 (T. D. 767; March 24, 1904.) 
 Circular No. 152 (Int. Rev. No. 254) issued by Commissioner, setting forth the 
 amount of tax and penalty to be reported for assessment as to each class of 
 special taxes for any given number of months. (T. D. 244; November 13, 
 1900.) 
 
 Special-tax stamps for year 1905: 
 Collectors are, instructed to make out and transmit to the Bureau of Internal 
 Revenue their requisitions on Form 100 (revised 1902) for special-tax stamps 
 for the special-tax year, commencing July l', 1904, and ending June 30, 1905; 
 and, in making orders, they should base their estimates of quantity upon the 
 number of each kind issued during the first three months of the current year. 
 (T. D. 777; April 16, 1904.) 
 
 Special-tax stamps for year ending June 30, 1904: 
 Collectors are instructed not to issue special-tax stamps for the special-tax year 
 ending June 30, 1904, until Form 11, properly filled out, and the money for 
 the stamps has been received; and the stamps must be issued in consecutive 
 order, the dates upon the stubs so indicating. (T. D. 656; April 16, 1903.) 
 
 Spirits, withdrawal: 
 Spirits not branded "alcohol" under section 3287, Revised Statutes, must not be 
 reported as "alcohol" nor withdrawn from bond tax free under section 3297, 
 Revised Statutes. (T. D. 594; November 7, 1902.) 
 
 Storage-house tax: 
 Where orders for whisky are received at a place of business where the requisite 
 special-tax stamps are held, and they are duly accepted there and those giv- 
 ing the orders are so notified, and invoices are transmitted to them from that 
 place, the subsequent actual delivery to them of the whisky from a place of 
 storage elsewhere does not necessitate the payment of special tax at such 
 storage house. (T. D. 737; January 5, 1904.) 
 
 Whisky bought in bond : 
 Where a distiller sells to another his distillery and all his whisky in bond, the 
 purchaser can not sell, the packages of whisky without subjecting himself to 
 special tax as a wholesale liquor dealer. (T. D. 664; May 13, 1903. ) 
 
 Special-taxpayers' returns. 
 Criminal prosecution for delay: 
 Every special-tax payer making sworn return, Form 11, within the calendar 
 month when his liability began, thereby escaping 50 per cent penalty, must 
 pay the tax not later than the last day of that month. If he postpones pay- 
 ment to a later period, he becomes liable to criminal prosecution, and should 
 be reported to the United States district attorney accordingly. (T. D. 20230; 
 October 19, 1898.) 
 
 31331—05 12 
 
178 
 
 Special-taxpayers' returns — Continued. 
 Failure to make return: 
 
 Section 31, act of June 13, 1898, provides that "all administrative, special, or 
 stamp provisions of law, including the laws in relation to the assessment of 
 taxes, not heretofore specifically repealed, are hereby made applicable to this 
 act." Collectors should proceed as provided in section 3176, Revised Statutes, 
 as amended, in case of neglect or refusal to make return, or in case of false or 
 fraudulent returns. (T. D. 19748; July 22, 1898.) 
 Fifty per cent penalty: 
 
 Where parties whose liability to special tax accrued under the act of June 13, 
 1898, failed through ignorance of the requirements of the law and regulations 
 to make a sworn return, and in consequence were required to pay the 50 per 
 cent penalty, such parties may make claims on Form 46 for the refunding of 
 the penalties paid. (T. D. 20030; September 10, 1898.) 
 Fifty per cent penalty — Assessment: 
 
 The circular letter dated September 3, 1898, directing collectors to report for 
 assessment without the 50 per cent penalty those cases arising under the war- 
 revenue act in which returns had not been made by taxpayers within the time 
 prescribed, applies only to cases in which the taxpayers had already (prior to 
 the issuance of that letter) failed to make sworn return before the expiration 
 of the calendar month in which their liability began. Cases of such failure 
 occurring in the month of September, 1898, or thereafter, must be reported for 
 assessment of the tax due and 50 per cent additional. (T. D. 20120; Septem- 
 ber 30, 1898.) 
 Negligence forfeits right to time extension: 
 
 The extension of time in which special-tax payers are allowed to make returns 
 is not to be granted to such of them as have allowed the entire month of Sep- 
 tember to pass without making their returns. In all such cases the 50 per 
 cent penalty must be exacted. (T. D. 20197; October 14, 1898.) 
 Return intrusted to attorney: 
 
 If a special-tax payer intrusts his return to an attorney for delivery to the collector 
 instead of delivering it himself, he does so at his own risk; and if, by reason of 
 sickness or absence of the attorney, the return is not within the hands of the 
 collector within the calendar month in which the liability began, a 50 per cent 
 penalty is incurred. (T. D. 691; August 21, 1903.) 
 The 50 per cent penalty: 
 
 The 50 per cent penalty in case of special-tax payers who had neither notice nor 
 information of the requirement that they should make a sworn return to the 
 collector as to their special-tax liability under the war-revenue act not to be 
 assessed. (T. D. 20001; September 3, 1898.) 
 Spirits bottled in bond. 
 
 Cases of whisky bottled in bond should be entered on book, Form 52, by whole- 
 sale liquor dealers when received or sent out by them, in pursuance of section 
 3318, Revised Statutes, as amended. (T. D. 808; July 12, 1904.) 
 Spoiled beer — Stamps on packages. 
 
 A refund of the cost of stamps affixed to packages of oleomargarine which have 
 become unmarketable is only authorized in cases where the stamped package 
 remains in the factory and has never been on the market or outside of the 
 factory premises. A like refund would be made in the case of a stamped 
 package or packages of beer spoiled before leaving the brewery. In each case, 
 however, the proof that the respective packages have never been off the prem- 
 ises where produced is required to be of the most positive character. (T. D. 
 799; June 14, 1904.) 
 
179 
 
 Stamp tax. 
 Bills of lading for exportation: 
 
 The Commissioner, in harmony with the Attorney-General, holds that bills of 
 lading issued by a carrier for transportation of goods from interior points in 
 the United States to a foreign country requires a 1-cent stamp to cover the 
 domestic transportation, and the same rule governs in the case of bills of lad- 
 ing issued for goods shipped by railroad from places in the United States to 
 places in Canada or Mexico. (T. D. 524; May 17, 1902.) 
 Bonds and guaranties of public contractors: 
 
 Bonds and guaranties of contractors for public work under Schedule A, act of 
 June 13, 1898, as amended by the act of March 2, 1901, are not required to be 
 stamped on and after July 1, 1901. (T. D. 356; June 5, 1901.) 
 
 Stamp tax is not required of State, county, or municipal officers on bonds con- 
 ditioned for the due execution or performance of the duties of any office or 
 position, or, to account for money received by virtue thereof. (T. D. 304; 
 March 31, 1901.) 
 , Stamp tax is not required on the bonds of brewers, cigar and tobacco manufac- 
 turers, and distillers, delivered on and after July 1, 1901. (T. D. 384; July 
 22, 1901.) 
 Bonds of distillers, brewers, manufacturer's: 
 
 Stamp tax is not imposed on bonds of distillers, brewers, manufacturers of 
 tobacco, snuff, and cigars, and peddlers of tobacco; on producers of wine, on 
 bonds for transportation and exportation of distilled spirits, on withdrawal of 
 alcohol for scientific purposes, withdrawal of distilled spirits by manufacturers 
 of cordials, for the establishment of warehouses, etc. ; but the official bonds 
 of all internal-revenue officers require a 50-cent stamp. (T. D. 396; August 
 6, 1901.) 
 
 It is held that where a retail dealer fills a bottle from a barrel for his bar stock, 
 from which he sells wine by the glass, he is not required to put a stamp on 
 the bottle. (T. D. 443; December 7, 1901.) 
 
 Stamp tax is required on railroad freight receipts. (T. D. 380; July 13, 1901. ) 
 
 Plasters, put up in the style of patent medicines and advertised as remedies, are 
 liable to stamp tax. (T. D. 268; January 21, 1901.) 
 Bonds of indemnification taxable: 
 
 Under paragraph 7, Schedule A, act of June 13, 1898, a bond for indemnifying 
 any person or persons, firm or corporation, and bonds for the due execution 
 or performance of the duties of any office or position, and to account for 
 money received, are subject to stamp tax. (T. D. 371; June 25, 1901.) 
 Checks drawn by sheriffs: 
 
 Bank checks drawn by sheriffs in the disbursement of private funds under sec- 
 tion 17, war-revenue law, are subject to stamp tax. (T. D. 283; February 
 15, 1901. ) 
 
 Delivery of stock: 
 
 Stamp tax is held to be due, under the provisions of Schedule A of the war- 
 revenue acts of June 13, 1898, and March 2, 1901, on memoranda used in con- 
 nection with the delivery of stock pledged as security for the future payment 
 of money. (T. D. 501; April 14, 1902. ) 
 
 Documentary stamp tax under repealed law: 
 
 Collectors must satisfy themselves that instruments are not to be validated under 
 section 13 of the war-revenue act before reporting the tax for assessment. Form 
 1 the only evidence of payment to Vie given when taxes are assessed, and 
 stamps to be issued only when instrument is validated. Treasury decision 
 554 modified. (T. D. 644; March 25, 1903.) 
 
180 
 
 Stamp tax — Continued. 
 Goods in bonded warehouse, July 1, 1902: 
 
 No allowance can be made for proprietary stamps on goods in bonded warehouses 
 or in places of manufacture July 1, 1902, unless the stamps are removed from 
 the packages and accompany the claim, or the deputy collector of internal rev- 
 enue certifies that he has seen each stamp and has indorsed upon the face of 
 each of them the words, "Claim for refunding filed." (T. D. 522; May 16, 
 1902.) 
 Identity of paragraphs in acts of 1901 and 1862: 
 
 The language of paragraph 7, Schedule A, as found in the act of March 2, 1901, 
 is identical with that of Schedule B, act of July 1, 1862, imposing stamp tax 
 on bonds, with the addition of the word "position." As showing that the 
 executive construction of this part of the act of July 1, 1862, was in harmony 
 with the intention of Congress, it appears that the act of June 30, 1864, which 
 reenacted almost all the provisions of the act of July 1, 1862, with considerable 
 enlargement as to the subjects and rates of taxation, in reenacting the pro- 
 vision, divided it into two clauses, so that the bonds of indemnity formed one 
 item and bonds for the due performanee of the duties of an office formed 
 another item, the language used being almost the' same, and in both cases the 
 rate of tax was increased. (T. D. 394; August 2, 1901.) 
 Stamps — Redemption. 
 Act of May 12, 1900: 
 
 The act of May 12, 1900, approved June 30, 1900, was so amended as to provide 
 that "no claim for the redemption of or allowance for stamps shall be allowed 
 unless presented within two years after the purchase of said stamps from the 
 Government, excepting documentary and proprietary stamps issued under the 
 act of June 13, 1898, which stamps may be redeemed as hereinbefore author- 
 ized upon presentation prior to the first day of July, 1904." (T. D. 544; July 
 8, 1902.) 
 Adhesive documentary and proprietary — Cancellation: 
 
 Existing regulations are so amended as to require that upon each adhesive docu- 
 mentary or proprietary stamp used or affixed after January 1, 1899, there shall, 
 in addition to the initials of the person using the same and the year in which 
 used, also appear the month and day of the month when such stamp was used 
 or affixed. The month may be expressed by numerals. (T. D. 20462; Decem- 
 ber 23, 1898. ) 
 Requisitions required on Form 100: 
 
 Collectors were directed, in circular No. 568, revised, that immediately upon the 
 reception of said circular, they should make out and transmit to the Bureau 
 of Internal Revenue requisitions on Form 100 (revised, 1902) for special-tax 
 stamps for the special-tax year, commencing July 1, 1902, and ending June 30, 
 1903. (T. D. 504; April 16, 1902.) 
 State bank notes. 
 
 State-prison manufacture of tobacco: 
 
 A State prison, or other State institution, is authorized to manufacture tobacco 
 or cigars for free distribution among its inmates' without qualifying as manu- 
 facturer of tobacco or manufacturer of cigars, and without payment of tax. 
 Dealers in leaf tobacco authorized to sell to such institutions without restric- 
 tion. (T. D. 736; January 4, 1904.) 
 Tax on circulation: 
 
 Where negotiable and transferable notes signed by the officers of a State bank 
 go into circulation, in lieu of the money or currency of the United States, a 
 tax of 10 per cent on such circulation is required to be paid. (T. D. 784; April 
 28, 1905. ) 
 
181 
 
 Statutory construction. 
 
 Construction of the words "deed," "grant," "sale," "gift:" 
 Construction of the words "transferred by deed, grant, bargain, sale, or gift, 
 made or intended to take effect in possession or enjoyment after the death of 
 the grantor or bargainer," as found in section 29 of the war-revenue act. 
 Under what circumstances a gift made before death of testator is subject to 
 tax. (T. D. 470; February 6, 1902.) 
 legacy interests under act of 1902: 
 
 Legacy interests that are not vested prior to June 27, 1902, are not subject to tax 
 under section 3, act of that date, which provides that "no tax shall hereafter 
 be assessed or imposed under said act, approved June 13, 1898, upon or in 
 respect of any contingent beneficial interest which shall not become absolutely 
 vested in possession or enjoyment prior to said July 1. 1902." (T. D. 570; 
 August 27, 1902'.) 
 
 Statutory packages: 
 
 It is held that a statutory package of tobacco, snuff, cigars, or cigarettes means a 
 package which contains only that article upon which the tax has been paid, 
 and no other substance or thing, and that the "inclusion of such article means 
 the exclusion of all foreign articles and articles concerning other business. 
 (T. D. 556; July 18, 1902.) 
 
 Suits pending against estates: 
 
 Where suits are pending against estates, which prevent executors from ascertain- 
 ing on what amount the tax is levied, executors should file with the collector 
 the return filled out according to the provisions of the will and appraisement. 
 After assessment, request may be made that the collection of the tax be stayed 
 pending decision by the court. (T. D. 523; May 17, 1902.) 
 
 Stills — Special tax. 
 
 Requirement as to registration: 
 Collectors are instructed that section. 3258, Revised Statutes, requires that every 
 person having in his possession or custody, or under his control, any still or 
 distilling apparatus, set up, shall register the same in duplicate form with the 
 collector of the district. (T. D. 193; August 4, .1900. ) 
 Stills for pharmaceutical purposes not liable: 
 The manufacturer of a still that is to be used only for pharmaceutical purposes, 
 or for distillation of volatile oils, is not required to pay special tax thereon, 
 provided he furnish to the collector evidence under oath setting forth the 
 purpose for which the still is to be used. (T. D. 5; January 5, 1900. ) 
 A still made for use in the manufacture of vinegar comes under the ruling as to 
 stills not used in the distillation of the spirits defined by the internal-revenue 
 laws, and special tax is not required to be paid thereon. Ruling 20878 
 revoked. (T. D. 11; January 8, 1900.) 
 Stills not intended for the production of spirits: 
 The statutory provision imposing special tax on stills is held not to apply to a 
 still that is shown not to be intended for the production of the spirits defined 
 by the internal-revenue laws. (T. D. 64; March 8, 1900. ) 
 
 Stocks. (See also Decisions 19700, 19710, 19998, 20091, 20093, 20157.) 
 Intention of law as to certificates: 
 The intention of the law is to tax the original issue of certificates of stock, and to 
 tax every change of ownership, whether by transfer or by sale. (T. D. 19888; 
 August 12, 1898.) 
 Transfers of stock from guardian to ward are subject to taxation. (T. D. 20070; 
 September 19, 1898.) 
 
182 
 
 Stocks — Continued. 
 
 "Original issue" construed: 
 
 Construing Schedule A, act of June 13, 1898, imposing stamp tax on each 
 "original issue," whether on organization or reorganization, of certificates of 
 stock, it is held that the words "original issue" are limited and controlled by 
 the words "whether on organization or reorganization." Therefore the only 
 certificates of stock on which the tax of 5 cents on each $100 of face value or 
 fraction thereof is imposed are those issued on or after July 1, 1898, on the 
 organization or reorganization of the company. In cases of agreements to 
 sell stock, or where the transfer is by delivery of the certificate assigned in 
 blank, the memorandum thereof is liable to tax. (T. D. 19607 ;June 29, 1898.) 
 Tax on shares of stock: 
 
 Tax on shares of stock pledged as collateral to secure the future payment of 
 money. A delivery of stock as collateral security for the future payment of 
 money is taxable at the rate of 2 cents for each $100, or fractional part thereof, 
 provided such delivery is accompanied by any paper, or agreement, or memo- 
 randum, or other evidence of transfer as required by statute. A so-called 
 collateral note, in which such stock should be described with reasonable 
 certainty, would be such evidence. (T. D. 417; October 4, 1901.) 
 
 Stocks of corporations. 
 Certificates and powers of attorney: 
 When a certificate of stock is presented for transfer and the power of attorney on 
 the back thereof is dated prior to July 1, 1898, although the name of the trans- 
 feree is not filled in until after that date, both the power of attorney and the 
 certificate are required to be stamped. (T. D. 21277; June 14, 1899.) 
 Certificates of foreign corp.oration: , 
 
 Certificates of stock of a foreign corporation when sold or delivered within the 
 United States are liable to the same tax as certificates of stock of any domestic 
 corporation. (T. D. 20793; March 6, 1899. ) 
 Stock, preferred, issued in lien of common stock: 
 Where preferred stock of a corporation is issued in lieu of common stock, there 
 being no change of ownership, there are no stamps required. In case of change 
 of ownership a tax of 2 cents per $100, or fraction thereof, is imposed. 
 Taxable transfers: 
 All transfers taxable, but if transfer is made pursuant to a sale, where the memo- 
 randum of sale has been duly stamped, no extra tax accrues. All transfers of 
 stock in pursuance of gifts, bequests, successions, or conveyances by trustees 
 taxable. (T. D. 21315; June 27, 1899. ) 
 Transfers of stock: 
 
 Where brokers, acting in behalf of their principals, buy stock and receive 
 stamped bills of sale in their own names, they may transfer such stock on the 
 books of the corporation to the names of their principals without additional 
 stamp tax. (T. D. 20727; February 21, 1899.) 
 
 Storekeepers, etc. 
 Compensation for services: 
 The compensation allowed gaugers, storekeepers, and storekeeper and gaugers 
 must not exceed $3 per day, or $500 for any fiscal year. (T. D. 447; Decem- 
 ber 12, 1901.) 
 Reports of operations required daily: 
 Storekeepers and storekeeper and gaugers in charge of Government records at 
 distilleries are required to make complete daily reports of their operations. 
 (T. D. 438; December 3, 1901.) 
 
183 
 
 Storekeepers, etc. — Continued- 
 Storekeepers and storekeeper-gangers' assignment: 
 Collectors are forbidden to designate persons to act as storekeepers and store- 
 keeper-gaugers, where there is no existing assignment by the Commissioner of 
 Internal Revenue. (T. D. 306; March 22, 1901.) 
 Storekeepers' monthly, Form 87: 
 As soon as all of the reports on Form 87 for a given district for the fiscal year end- 
 ing June 30, 1905, are received by the collector, these reports will be removed 
 from their respective binders, arranged according to the serial numbers of the 
 distillery warehouses, all reports for one distillery being placed together and 
 arranged in regular monthly order from July, 1904, to June, 1905, inclusive, 
 and bound in volumes not too bulky for convenient handling or reference for 
 any purpose. (T. D. 793; May 31, 1904.) 
 Sugar taxation. 
 Sugar-refining companies' returns: 
 Sugar-refining companies, refining sugar in one collection district and having 
 their principal (home) offices in another collection district, should make returns 
 of their gross receipts in each of such districts, respectively. (T. D. 20201; 
 October 17, 1898. 
 Sugar-refining tax, Act of 1898: 
 The provisions of section 27, act of June 13, 1898, imposing a special tax on the 
 annual receipts, in excess of $250,000, from the business of refining sugar, do 
 not apply to beet-sugar factories where sugar is made directly from beets, with- 
 out refining, except in the process of manufacture. (T. D. 19831; August 4, 
 1898.) 
 Supplemental tobacco regulations. 
 Extent of sales as affecting tax: 
 Dealer in cigars liable to special tax when sales for preceding fiscal year exceed 
 2,500,000 cigars. Any person commencing business as dealer in tobacco or 
 cigars July 1, 1898, or subsequently during the year, required to pay special 
 tax whenever sales exceed 50,000 pounds; the special tax will be computed 
 from the first day of the month in which he commenced to engage in the 
 business. (T. D. 19600; June 28, 1898. ) 
 New rates of tax on cigars and cigarettes: 
 The act of March 2, 1901, so far as it imposes new rates of tax on cigars and 
 cigarettes and provides for discount on sales of stamps for payment of tax on 
 tobacco and snuff, and for drawback or rebate of taxes on tobacco, snuff, and 
 cigars held by manufacturers and dealers, takes effect on the 1st day of July, 
 1901, as provided by section 15 of said act. (T. D. 307; March 23, 1901.) 
 Sureties on cigar manufacturer's bond: 
 In cases where cigar manufacturers desire to voluntarily file a new bond for 
 reasons satisfactory to themselves, such bonds, if approved by the collector, 
 should be accepted, and the manufacturer's accounts closed under the old bond. 
 The responsibility for the transactions of the manufacturer will then be 
 assumed by the new bondsmen. The same rule' holds good in cases where 
 new bonds are demanded by the collector or by instructions of the Commis- 
 sioner of Internal Revenue. (T. D. 740; January 9, 1904.) 
 
 T. 
 
 Tax recoveries. 
 
 Internal-revenue circular, No. 567, instructs collectors as to the course to be taken 
 to recover taxes due, but unassessable (without waiver) because of the fifteen 
 months' limitation. (T. D. Ill; April 25, 1900.) 
 
184 
 
 Tax recoveries — Continued. 
 
 Attorneys duly registered in the Treasury Department, and filing powers of attor- 
 ney, will be recognized in the prosecution of refunding claims. (T. D. 159; 
 June 14, 1900.) 
 Tax-paid tobacco and snuff. 
 
 The regulations, No. 8, page 32, anticipate the reworking of unsalable manufac- 
 tured tobacco or snuff returned to the factory. It is immaterial that the unsal- 
 able tax-paid tobacco was the product of another factory, but the stamps affixed 
 to the packages must be destroyed immediately upon receipt of the tobacco at 
 the factory, and the tobacco must be removed from the packages at once and 
 proper charges made therefor as tobacco in process of manufacture received at 
 the factory. (T. D. 636; March 12, 1903.) 
 Taxing sheriffs — Not liable on levies and sales. 
 
 A sheriff or other officer who levies upon and sells the oleomargarine belonging 
 to the stock of goods of a retail dealer in oleomargarine is not required to pay 
 special tax therefor, inasmuch a? he is acting in his official character, in the 
 discharge of lawful duties. (T. D. 730; December 18, 1903.) 
 Telegraphic messages. 
 
 Dispatches of diplomatic officers: 
 Telegrams sent by foreign diplomatic officers residing in this country are exempt 
 from stamp tax, except where such officers engage in commerce or trade. 
 • (T. D. 20060; September 15, 1898.) 
 
 Telegraph messages of associated steamship lines, or fast freight lines operating 
 over railroads, are not entitled to exemption from stamp tax under section 18, 
 act of June 13, 1898. (T. D. 20066; September 17, 1898.) 
 Exemptions of official telegrams: 
 The exemption from stamp tax of telegraphic messages of an official character, 
 under the war-revenue act, is based upon the theory that the public has a 
 direct interest in untrammeled communication between railroad officials 
 engaged in practical railroad operations. This ruling does not include outside 
 organizations, though connected with or subsidiary to a group of railroad 
 companies. (T. D. 20158; October 8, 1898.) 
 Exemptions under section 18, war-revenne act: 
 All messages of railroad companies concerning "the affairs and service of the 
 company," and all such messages by and to connecting lines in respect to the 
 joint and mutual business of each, are exempt from stamp tax under proviso 
 2, section 18, act of June 13, 1898, but the exemption does not include 
 messages to a connecting line in relation to the business of one line only. 
 (T. D. 19794; July 28, 1898.) 
 Money-order messages: 
 Telegraphic messages transmitting money orders, express money orders, and 
 telegraphic orders transferring money from a bank are, if domestic orders, 
 alike liable to a tax of 2 cents, in addition to the tax on the telegram or dis- 
 patch itself. (T. D. 19795; July 29, 1898.) 
 Official messages exempt from tax: 
 Telegraphic messages sent by State officers in the discharge of official duties are 
 exempt from stamp tax. (T. D. 19704; July 16, 1898.) 
 Telegraphic and telephone messages. 
 
 Decision of the United States circuit court, ninth circuit, northern district of 
 California, in the case of J. Waldere Kirk v. The Western Union Telegraph 
 Company. It is the duty of the maker and signer of the telegram to affix and 
 cancel the stamp. (T. D. 20602; January 20, 1899.) 
 
185 
 
 Telegraphic and telephone messages — Continued. 
 
 The person, firm, or corporation starting telephone messages or conversations, 
 should make tax return on Form 424. (T. D. 20983; April 6, 1899. ) 
 
 Telephone companies may include in their monthly returns, filed in the collec- 
 tion district in which they are located, messages transmitted over their lines 
 in other districts. (T. D. 20267; October 29, 1898.) 
 Stamping telegrams and sleeping-oar tickets. 
 
 Collectors and revenue agents are advised that hereafter, under the war-revenue 
 act, in making examinations of the files of telegraph companies and sleeping- 
 car companies, they ascertain if the law has been complied with with reference 
 to stamping telegrams and sleeping-car tickets, and that such examination 
 should be restricted to simply ascertaining if the documents referred to have 
 been properly stamped. (T. D. 19791-; July 28, 1898.) 
 Sworn statements of telephone companies. 
 
 Returns (Form 424) of messages or conversations by various branches of a tele- 
 phone company may be included in the monthly returns rendered to the col- 
 lector of the district in which the principal office of such company is located. 
 (T. D. 20291; November 2, 1898.) 
 Telegrams on official business. 
 
 Under the act of June 13, 1898, last proviso of section 18, messages dispatched by 
 officers and employees of the Government on official business are exempt 
 from stamp tax, but the telegraph should be used in cases only of urgent 
 necessity, where mail facilities do not furnish sufficient dispatch. (T. D. 19649; 
 July 7, 1898.) 
 Theaters — Special tax. (See also Exhibitions and Shows. ) 
 
 Where theaters are closed during July and August and opened in the month of 
 September, continuing to the 1st day of July following, the special tax is 
 reckoned from the 1st day of September. (T. D. 19750; July 22, 1898.) 
 Census returns and special tax: 
 
 In ascertaining and collecting the special tax imposed upon proprietors of 
 theaters, etc., in cities having more than 25,000 population, under paragraph 
 6, section 2, act of June 13, 1898, the census begun June 1, 1900, is not to be 
 taken as the last preceding census with reference to the special-tax year begin- 
 ning July 1, 1900. (T. D. 140; May 31, 1900.) 
 
 Proprietors of theaters and opera houses in cities whose population as shown by 
 the former census was 25,000 or less are not to be called on to pay special tax 
 for the current year because of newspaper announcements that the recent 
 census shows a population for these cities of more than 25,000. (T. D. 234; 
 October 23, 1900. ) 
 
 The proprietor of a theater building or opera house in a city of less than 25,000 
 population is not required to pay any special tax therefor. Each company 
 playing therein must pay the special tax and take out its own stamp. (T. D. 
 260; December 31, 1900.) 
 lessee in town of less than 25,000 people: 
 
 A special-tax stamp taken out by the lessees of a theater can not, upon their 
 transferring their lease to other persons, be transferred and made to answer 
 for the latter persons in conducting the theater. (T. D. 20396; December 
 6, 1898.) 
 
 The lessee of an opera house in a small town, having less than 25,000 inhabit- 
 ants, is not liable to special tax under paragraph 6, section 2, act v of June 13, 
 1898. (T. D. 19939; August 23, 1898.) 
 
186 
 
 Theaters — Special tax— Continued. 
 Paragraph 7, section 2, act of 1898: 
 
 The "theatrical performances" contemplated by paragraph 7, section 2, act of 
 June 13, 1898, are only those which are given in connection with a circus. A 
 theatrical company, therefore, merely playing dramas in towns of 25,000 inhab- 
 itants (as shown by last census) or less, or in buildings whose proprietors do 
 not hold- the $100 special-tax stamp, is required to pay special tax under 
 paragraph 8, namely, $10 for each State for the special-tax year. (T. D. 19799; 
 July 30, 1898.) 
 Special-tax stamps for different States: 
 
 While it is not permissible for any collector to issue "at one time and place" 
 special-tax stamps to the proprietor of a theatrical company for a number of 
 different States and Territories, yet, as before commencement of his season, 
 the proprietor has already booked his company to play in various States, there 
 is nothing in the law to prevent him from sending in advance to the collector 
 of the district in any particular State a return Form 11, duly filled up and 
 signed, setting forth the particular month and date when it is to appear, and 
 upon payment of the special tax from the first day of such month to the 1st 
 day of July following, the collector may issue to him the necessary stamp. 
 (T. D. 19828; August 4, 1898.) 
 Summer theaters: 
 
 A summer theater, conducted outside a city's corporate limits and embracing 
 operatic, dramatic, and vaudeville performances, the price of admission being 
 "nominal,' - is required to pay tax under paragraph 8, section 2, act of June 
 13, 1898. (T. D. 19891; August 13, 1898.) 
 Tax under section 8, war -re venue act: 
 
 The proprietors of a theater, in a city of more than 25.000 population, for admis- 
 sion to which entrance money is not received, but where vaudeville perform- 
 ances are given, lor witnessing which the persons present "are expected to 
 order refreshments, ' ' must be regarded as giving a public exhibition for money, 
 for which they are required to pay special tax of $10, under the eighth para- 
 graph of section 2, act of June 13, 1898. It is not a theater for which the special 
 tax of $100 is required to be paid under the sixth paragraph of that section. 
 (T. D. 132; May 23, 1900.) 
 Tobacco tax. 
 
 Cancellation of manufacturers' bonds: 
 
 There is no statute providing for the cancellation of the bonds of tobacco manu- 
 facturers nor for discharging the liability of the surety. The bonds are to be 
 kept on file in the collector's office, and should any default be thereafter dis- 
 covered they are held liable. (T. D. 648; April 4, 1903. ) 
 Inventories of stock: 
 
 Sections 3358 and 3390, Revised Statutes, require manufacturers of tobacco and 
 manufacturers of cigars, respectively, to make, on the 1st day of January, 
 each year, an inventory of their stock of tobacco material and manufactured 
 products, together with the unattached stamps held or owned by them. The 
 stocks inventoried shall be examined and each inventory verified by a deputy 
 not later than the 20th day of January. (T. D. 726; December 9, 1903.) 
 
 Tobacco tax— Cigars and snuff. (See also Decision 19744.) 
 Advertisement of whisky unlawful on cigar boxes: 
 Merchants can not lawfully advertise their brands of whisky, nor other articles, 
 on cigar boxes. (T. D. 233; October 20, 1900.) 
 
187 
 
 Tobacco tax— Cigars and snuff— Continued. 
 Auction sales of tobacco: 
 
 Auction sales of tobacco in warehouses, or at "tobacco breaks," subject to tax 
 same as upon sales of "any products or merchandise at any exchange or board 
 of trade or other similar place." (T. D. 19972; August 29, 1898.) 
 
 Where the farmer or producer of tobacco brings his product to market and sells 
 it in his own name through an auctioneer, the sales will come within the scope 
 of a sale made at an auction house and not through an exchange, or board of 
 trade, or other like place, and stamp tax is not required. (T. D. 20236; October 
 24, 1898.) 
 
 Caution notices: 
 
 The caution-notice label may be printed upon pasteboard, paper, enameled tin, 
 or other metal, or paper packages, approved as substitutes for wooden boxes 
 for packing cigars. The printing may be done before the packages are deliv- 
 ered to the cigar manufacturer. A cigar-box manufacturer may affix caution- 
 notice labels on cigar boxes before delivery to a cigar manufacturer. If a 
 manufacturer of cigars should fail to affix or cause to be affixed the proper 
 label on packages containing cigars removed from the factory, he would incur 
 liability to a fine imposed by the statute for such neglect. Cigar packages 
 bearing caution-notice labels and brands of one factory found on the premises 
 of another factory are subject to forfeiture. (T. D. 97; April 13, 1900. ) 
 
 The time set for enforcing the provisions of section 10, act of July 24, 1897, govern- 
 ing the seizure of tobacco packages, containing prohibited articles, is extended 
 to June 1, 1900. (T. D. 99; April 16, 1900.) 
 
 Rulings regulating the enforcement of the provisions of last paragraph of section 
 10, act of July 24, 1897, as to seizure of packages of tobacco containing pro- 
 hibited articles.— Amended by decision No. 185. (T. D. 133; May 24, 1900.) 
 
 The caution notice, the number of the manufactory, and the district and State 
 may be printed upon enameled tin or pasteboard packages intended for pack- 
 ing cigars. The substitution by a manufacturer of cigars of a different num- 
 ber, and a different district and State for his own registered number and 
 district and State, would be in violation of section 3393, Revised Statutes, and 
 all cigars found at his factory put up in packages bearing caution-notice labels, 
 marks, or brands different from those required for his factory, would be sub- 
 ject to forfeiture under section 3455, Revised Statutes. (T. D. 96; April 13, 
 1900.) 
 Cigar manufacturers and cigar cnttings: 
 
 Dealers in leaf tobacco who improperly qualify as manufacturers of cigars for the 
 purpose of dealing in cigar cuttings, and who made no cigars last year, are not 
 liable to special tax as manufacturers of cigars, but such persons will be 
 required to close their business as cigar manufacturers and may qualify as 
 manufacturers of tobacco. (T. D. 19801; August 1, 1898.) 
 Computation of tax annually: 
 
 Persons engaged in business as manufacturers of tobacco or cigars, or dealers in 
 leaf tobacco, during the entire fiscal year ending June 30, 1899, and continuing 
 business on and after July 1, are required to pay special tax computed on the 
 basis of their annual sales for present fiscal year. Persons not engaged in 
 business during the entire preceding fiscal year, but who continue or com- 
 mence business on or after July 1, may pay either the minimum or the 
 maximum rate of tax. If the aggregate monthly sales of persons paying the 
 minimum rate at any time during the year exceed the limit for which they 
 first paid special tax, they should make a new return at the higher rate from 
 the 1st day of July or from the first day of the month in which they com- 
 
188 
 
 Tobacco tax — Cigars and snuff — Continued. 
 Computation of tax annually — Continued. 
 
 menced business. Persons who at first pay the higher rate, and have paid an 
 amount in excess of their actual liability, will be permitted to make a claim 
 for the amount so paid in excess at the close of the year. (T. D. 21276; June 
 14, 1899.) 
 
 Cigar leaf tobacco in the custody of the Customs Service is not subject to entry 
 on Book 73, and monthly return, Form 72, kept by cigar manufacturers, who 
 must only enter on these records leaf tobacco actually received at the factory. — 
 Imported leaf tobacco, not actually received by the manufacturer at his cigar 
 factory, improperly entered on record Book 73, and monthly return, Form 72, 
 must be stricken from these records and eliminated from the accounts. (T. D. 
 21449; July 25, 1899.) 
 Dealers having several warehouses: 
 
 AVhere a dealer in leaf tobacco has several warehouses in which he temporarily 
 stores his tobacco, and from which he afterwards reships the tobacco to him- 
 self at another warehouse, from which he sells the tobacco, he would only be . 
 required to pay special tax for the place where he last receives and sells the 
 tobacco. (T. D. 20638; January 26, 1889.) 
 Dealers in leaf tobacco: 
 
 Dealers in leaf tobacco and other persons who have qualified as manufacturers of 
 tobacco for the purpose of dealing in refuse scraps, cuttings, clippings, and 
 sweepings of tobacco have the right as manufacturers to cut, grind, assort, size, 
 clean, and otherwise reduce their leaf tobacco and tobacco cuttings, scraps, 
 etc., preparatory to use as material in the manufacture of cigars, smoking 
 tobacco, or other kind of manufactured tobacco; but if their product is a 
 merchantable manufactured tobacco, cut or granulated smoking or chewing 
 tobacco, the same must be properly packed, labeled, branded, and stamped 
 before removal from the place of manufacture. (T. D. 20546; January 13, 
 1899. ) 
 Dealers in scraps, cuttings, clippings, etc.: 
 
 Persons who have qualified as manufacturers of tobacco for the sole purpose of. 
 handling and dealing in stems, refuse scraps, cuttings, clippings, and sweeping 
 of tobacco are required to register and pay the minimum rate of special tax, 
 $6, imposed on manufacturers of tobacco. (T. D. 19844; August 9, 1898.) 
 Farmers' privileges under existing law: 
 
 Under existing law the farmer or grower of tobacco has the right to sell tobacco 
 of his own growth and raising to any person and in any quantity, provided its 
 condition has not been changed in any manner. This is a personal privilege 
 and can not be delegated by him to another person. The farmer can not 
 employ another person to travel from place to place to sell and deliver tobacco, 
 nor has he the right to place the tobacco in the hands of another person to be 
 sold for him, but he may place it in the hands of a qualified dealer in leaf 
 tobacco to be sold on commission to other qualified dealers, or to manufactur- 
 ers of tobacco or cigars, or to persons who buy leaf tobacco in packages for 
 export. (T. D. 20482; January 3, 1899.) 
 Farmers' sales of their own growth: 
 
 Farmers and growers of tobacco are permitted to sell leaf tobacco of their own 
 growth and raising, either in the hogshead, case, or bale, or loose in the hand, 
 without restriction, but are not permitted to stem, twist, roll, plait, sweeten, 
 cut, or grind, or otherwise reduce the tobacco from its natural condition and 
 sell the same to consumers. (T. D. 19877; August 10, 1898.) 
 
189 
 
 Tobacco tax— Cigars and snuff— Continued. 
 Farmers' sales of their own growth — Continued. 
 A person who confines his business strictly to buying leaf tobacco and shipping 
 it to foreign countries, and there selling it, is not required to pay special tax 
 under the internal-revenue laws as a dealer in leaf tobacco on account of such 
 business. (T. D. 28; January 30, 1900.) 
 Forfeiture under section 3400, Revised Statutes: 
 Opinion of the United States district court of the eastern judicial district of Penn- 
 sylvania, defining the operation of the internal-revenue laws as affecting for- 
 feitures for violation of section 3400, Revised Statutes, in cases of property 
 belonging to innocent parties used for fraudulent purposes. Alleged ignorance 
 of the law does not excuse from its penalties. (T. D. 54; March 1, 1900.) 
 liability to special tax: 
 The liability of a manufacturer of cigars to a special tax is predicated upon the 
 aggregate annual sales of the preceding fiscal year, and special tax is not to be 
 computed on the basis of his sales for a fractional part of the year. (T. D. 
 21258; June 13, 1899.) 
 losses by theft: 
 Manufacturers claiming loss of cigars by theft are required to file satisfactory 
 evidence showing that the cigars were actually stolen. (T. D. 20586; January 
 18, 1899. ) 
 
 Manufacturer carrying surplus stock: 
 A manufacturer purchasing large quantities of leaf tobacco, exceeding the 
 demands of his factory, for the purpose of reselling his surplus to other manu- 
 facturers, must be regarded as engaged in and carrying on the business of a 
 dealer in leaf tobacco, and will be required to make return and pay special tax 
 as dealer in leaf tobacco at some place not connected with the factory. (T. D. 
 20605; January 23, 1899. ) 
 
 Manufacturers and surplus stock: 
 Manufacturers of tobacco or cigars who do not sell leaf tobacco, but who pur- 
 chase and temporarily store surplus stock intended for use at their several 
 factories, will not be required to pay special tax as dealers in leaf tobacco, but 
 such tax will be imposed should they engage in the business of selling leaf 
 tobacco. (T. D. 19619; July 2, 1898.) 
 
 Manufacturers' sales to each other: 
 Manufacturers of tobacco or cigars may sell tobacco stems in their natural condi- 
 tion to other manufacturers, to qualified dealers in leaf tobacco, or to persons 
 who buy tobacco stems in their natural condition exclusively for export, the 
 purchaser of the stems not being required to qualify as a manufacturer of 
 tobacco nor to export in bond the stems purchased from manufacturers. (T. D. 
 21518; August 16, 1899.) 
 Dealers in leaf tobacco required to make entry in red ink on debit side of Book 
 59 of tobacco returned, and, after checking, the collector will omit reporting 
 the sale on abstracts, Form 434 or 435. (T. D. 21520; August 19, 1899.) 
 
 Methods of packing goods: 
 Manufacturers can not pack goods of another factory on goods made at their 
 own factory. Manufacturers selling their own products at place of manufac- 
 ture are not required to pay special tax as dealers in tobacco. Manufacturers are 
 not permitted to pack stamped packages of smoking tobacco or stamped cad- 
 dies of plug tobacco between the chime and head or bottom of such packages. 
 (T. D. 19765; July 26, 1898.) 
 
190 
 
 Tobacco tax — Cigars and snuff — Continued. 
 Minimum and higher tax rates: 
 
 Dealers in leaf tobacco, and manufacturers of tobacco or cigars, who were not 
 engaged in business last fiscal year, are required on commencing business to 
 pay minimum rate of special tax, and when sales during the year reach an 
 amount requiring payment of higher rate, will make return and pay tax at the 
 higher rate. (T. D. 19822; August 3, 1898. ) 
 Minimum tax returns: 
 
 Tobacco dealers and manufacturers riot engaged in business during the preced- 
 ing fiscal year will pay the minimum rate of tax. The party paying the tax 
 will be required to make return and pay a higher rate when sales exceed the 
 limit. Special-tax stamp to be issued in each case to cover the period of time 
 in which the liability to special tax commenced to the 1st day of July follow- 
 ing. (T. D. 20633; January 24, 1899.) 
 
 Dealers in leaf tobacco are not permitted under the law to purchase refuse 
 scraps, cuttings, clippings, or sweepings of tobacco for the purpose of selling 
 the same to other dealers in leaf tobacco. (T. D. 20635; January 26, 1899.) 
 Outside storage allowable: 
 
 In case manufacturers of tobacco or cigars have not sufficient room in which to 
 store their material, the Commissioner, upon application and for sufficient 
 cause, will permit outside storage, provided the makers of the bond will indorse 
 thereon their assent to be bound for transactions at the place where the tobacco 
 is stored. (T. D. 20480; January 3, 1899.) 
 Peddlers required to give bond: 
 
 Peddlers of tobacco are not required to pay special tax under act of June 13, 1898, 
 as dealers in tobacco, but are required to register and give bond as heretofore. 
 (T. D. 19802; August 1, 1898.) 
 
 (See also Decisions 20592, 20603.) 
 Pictures on statutory packages allowable: 
 
 Pictures and other ornamentations, with descriptive matter, may be printed on 
 statutory packages of tobacco, cigars, and cigarettes, notwithstanding the same 
 have not been adopted as trade-marks for advertising the goods. Such pic- 
 tures or decorations may be printed upon manufacturers' wrappers or labels, 
 upon cigar packages, or the outside or inside case of cigarette packages, when 
 they avoid any promise or offer of, or any order or certificate for, any gift, 
 prize, premium, payment, or reward. (T. D. 245; November 15, 1900.) 
 Prohibitions of section 10, act of July 24, 1897: 
 
 Section 10, act of July 24, 1897, prohibits packages of smoking tobacco, fine-cut 
 chewing tobacco, and cigarettes from having packed in, or attached to, or con- 
 nected with them, "any article or thing whatsoever" of a foreign nature, and 
 provides that there shall not be affixed to, or branded, stamped, marked, 
 written, or printed upon said packages, or their contents, any promise or offer 
 of, or any order or certificate for, any gift, prize, premium payment, or reward. 
 In the case of United States v. Two Hundred and Eighty-eight Packages of 
 Merry World Tobacco, brought in the District Court of the United States for 
 the district of West Virginia, to determine whether there is any penalty 
 provided for violations of this provision, and also to determine the question as 
 to its constitutionality, a decision has been rendered holding the act constitu- 
 tional, and that section 3456, Revised Statutes, provides a penalty. (T. D. 
 168; June 29, 1900.) 
 
 Regulations are framed respecting the contents and the marking and labeling of 
 statutory packages of tobacco and cigars. (Series 7, No. 8, revised, Supplement 
 No. 1.) (T. D. 185; July 27, 1900.) 
 
191 
 
 Tobacco tax— Cigars and snuff— Continued. 
 Removal in violation of law: 
 
 All tobacco and cigarettes removed from the factory in disregard of the last para- 
 graph of section 10, act of July 24, 1897, found in the possession of the manu- 
 facturer or his agents, stamps bearing cancellation, on and after the 20th 
 proximo, will be seized for forfeiture. (T. D. 74; March 17, 1900. ) 
 Repacking in smaller packages forbidden: 
 
 Dealers in tobacco or snuff are not permitted to break original packages of tobacco 
 or snuff for the purpose of repacking in smaller packages. (T. D. 20597; Jan- 
 uary 20, 1899.) 
 Restrictions of dealers in leaf tobacco: 
 
 Dealers in leaf tobacco are 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. (T. D. 20584; January 18, 1899.) 
 Sales of cut or granulated tobacco: 
 
 A qualified manufacturer of tobacco is not permitted to sell cut or granulated 
 tobacco in bulk as material, and without payment of tax, to another manufac- 
 turer, although the latter may intend to properly pack and stamp it as required 
 by the statute. — Manufactured tobacco, whether cut, granulated, or scraps, the 
 process or manufacture of which has been completed, is not subject to sale and 
 transfer by one manufacturer to another, but must be properly packed, labeled, 
 and stamped before removal from the place of manufacture. (T. D. 21451; 
 July 27, 1899.) 
 Sales under special permit: 
 
 A manufacturer of tobacco, sntoff, or cigars may, under special permit granted by 
 the Commissioner, sell leaf tobacco, refuse scraps, etc., in bulk as material 
 directly to another manufacturer. Stems rendered unfit for use in the manu- 
 facture of smoking tobacco or snuff may be sold as fertilizers, insecticide, or 
 sheep wash. Manufacturers prohibited from selling stems in their natural 
 condition, except sale is made to another qualified manufacturer of tobacco. 
 (T. D. 19876; August 10, 1898.) 
 Special taxes based on total sales: 
 
 Collectors must be guided by decision of Comptroller of the Treasury that the 
 special taxes of tobacco dealers and manufacturers who were engaged in such 
 business during the preceding fiscal year shall be computed on the total sales in 
 such preceding fiscal year without regard to whether the dealer or manufacturer 
 was engaged in such business during the whole or only a part of said year. 
 (T. D. 138; May 31, 1900.) 
 Tin box, properly marked, approved for packing : 
 
 A box made from tin, and similar in size to the ordinary commercial wooden 
 box, which will admit of the propes- labels, marks, brands, and stamps, and 
 upon which the caution notice is directly imprinted, approved, under regula- 
 tions, for use as a substitute for the ordinary commercial wooden box for 
 packing cigars. (T. D. 20598; January 20, 1898.) 
 
 Manufacturers are not permitted to put up smoking tobacco in packages contain- 
 ing 6f ounces of tobacco and affix two 3J-ounce stamps on such package. No 
 provision is made by law for packages containing such quantity of tobacco. 
 (T. D. 20600; January 20, 1899.) 
 
 Unstamped sample packages containing two small cigars, weighing not more 
 than 3 pounds per thousand, will not be authorized. Such cigars are required 
 to be put up in stamped packages containing 10, 20, 50, or 100 cigars each, 
 respectively. (T. D. 20601; January 20, 1899.) 
 
192 
 
 * 
 
 Tobacco tax — Cigars and snuff — Continued. 
 Transfer of leaf tobacco: 
 Dealers in leaf tobacco may transfer leaf tobacco to themselves as manufacturers 
 of cigars, and such, transfers will not be taken into account in estimating the 
 liability of special taxes. — Such transactions do not constitute sales within the 
 meaning of the statutes. ( T. D. 21561 ; September 1, 1899.) 
 Transfer of special-tax stamp forbidden: 
 No provision of law by which a special-tax stamp issued to one person can be 
 transferred to and made use of by any other person, except in the single 
 instance of the death of the special-tax payer, expressly provided for by section 
 3241, Revised Statutes. (T. D. 20153; October 5, 1898.) 
 Union labels on statatory packages : 
 Union labor labels issued by a cigar makers' international union to manufac- 
 turers may be used by them in connection with their statutory packages of 
 cigars, provided such labels do not contain any promise or offer of, or any 
 order or certificate for, any gift, prize, premium, payment, or reward. (T. D. 
 201; August 17, 1900.) 
 
 Tobacco sales. 
 Accounting for scraps, cuttings, etc., required: 
 
 All tobacco material, including scraps, cuttings, and. clippings, must be accounted 
 for by a manufacturer of cigars in the condition in which it was purchased. 
 If a manufacturer sells, or inventories as on hand, tobacco scraps, cuttings, or 
 clippings which he produced himself from unstemmed leaf, the collector will 
 reduce such materials to their equivalents in unstemmed leaf, 15 pounds of 
 stemmed tobacco scraps, cuttings, or clippings of tobacco being equivalent to 
 25 pounds of unstemmed leaf. (T. D. 395; August 5, 1905.) 
 Sealers buying and selling loose leaf tobacco: 
 
 Dealers in leaf tobacco, having paid a special tax to engage in or carry on busi- 
 ness at a public warehouse, may buy and resell loose leaf tobacco, which con- 
 stitutes the breaks on warehouse floors, without being required to repack the 
 tobacco in hogsheads, cases, or bales. Loose leaf tobacco purchased by them 
 outside of the public warehouse from the farmer or grower of the tobacco is 
 required to be repacked in hogsheads, cases, or bales before sale and removal 
 from their place of business. 
 
 Exception: Cigar leaf tobacco may be sold by a qualified leaf dealer directly to 
 a qualified manufacturer of cigars, in quantities less than a case or bale, for use 
 in his own manufactory exclusively. (T. D. 21046; April 20, 1899.) 
 Distribution of free samples : 
 
 The distribution, as free samples, of packages of fine-cut chewing tobacco in 
 unstamped subdivisions is unauthorized. Authority given under present regu- 
 lations to put up subdivisions of statutory packages was intended to apply only 
 to salable subdivisions for the retail trade. (T. D. 733; December 19, 1903.) 
 Exposure of cigars in end of packages: 
 
 Subaivisions of statutory packages are only authorized when they consist of a 
 paper (unsealed) wrapper or inclosure cut off at one end, so that the cigars 
 will be exposed. Subdivisions which conceal the cigars so that their size and 
 number can not be ascertained without being withdrawn from the statutory 
 package are in violation of the regulations. (T. D. 20674; February 2, 1899.) 
 Leaf-tobacco books: 
 
 Collectors are advised that, in the preparation of quarterly transcripts of the 
 books of leaf-tobacco dealers, on Form 434, entries of all sales to purchasers in 
 
193 
 
 Tobacco tax — Cigars and snuff— Continued. 
 Leaf-tobacco books — Continued. 
 
 one district should be made separately from sales to other districts — that is, 
 the transcripts should not embrace more than one district — separate sheets 
 being used for each district. (T. D. 675; July 3, 1903.) 
 Removal and sale of cigars unstamped: 
 
 Where a sheriff or constable removes cigars from a cigar factory without the 
 same being properly boxed and stamped, as required by section 3397, Eevised 
 Statutes, as amended, and sells the same unstamped, he is liable to the penalty 
 as prescribed under said section. Instructions as to further action in such 
 cases. (T. D. 21167; May 16, 1899.) 
 Sales from original stamped packages: 
 
 A dealer who sells from a tax-paid package need not inquire into the purpose of 
 his customer in buying. If he is not aware of the fact that the customer 
 intends to resell in violation of law, he incurs no liability. While the respon- 
 sibility rests upon the purchaser who resells, the person who sells him broken 
 quantities of tobacco with the full knowledge that the customer intends to 
 resell may be held liable under the statute, for he would be a party to and 
 participant in the illegal act of his customer. (T. D. 720; November 23, 1903. ) 
 Sample packages, etc.: 
 
 Sample packages containing either a less or a greater number of cigars than 
 denoted by the stamp affixed to the packages are subject to forfeiture. A 
 manufacturer of tobacco or cigars can not lawfully carry on business on factory 
 premises as a dealer in tobacco, snuff, or cigars made at other manufactories, 
 and if he desires to buy and sell products of other factories he must carry on 
 such business at some place separate from his factory premises. (T. D. 21257; 
 June 12, 1899. ) 
 
 When a special-tax payer removes from one State to another, his special-tax 
 stamp may be transferred under the provisions of section 3241, Eevised Stat- 
 utes, and the regulations; but when he sells out his business, his special-tax 
 stamp can not be transferred to the purchaser to cover the same business 
 carried on by the latter. (T. D. 241; November 9, 1900. ) 
 Subdivision packages: 
 
 The Commissioner of Internal Revenue feels justified by existing statutes in 
 abandoning the use of subdivision packages of smoking and chewing tobacco 
 It has not been discovered that any legal authority exists for putting up 
 packages of tobacco, snuff, or cigars in any sizes other than those provided by 
 section 3362, Revised Statutes, amended. (T. D. 723; November 30, 1903.) 
 
 Tobacco taxes. 
 
 Fine cut; unstamped subdivisions as samples: 
 In connection with Treasury decision 723, issued November 30, 1903, vvith refer- 
 ence to subdivision packages, manufacturers of fine-cut chewing tobacco are 
 authorized under present regulations to put up such product in subdivision 
 packages, and so long as such subdivisions do not come within the designation 
 of statutory packages, their size or weight is immaterial, but they must be sold 
 and delivered directly from the original stamped package to the consumer. 
 (T. D. 733; December 19, 1903.) 
 
 leaf, Cavendish, stamping and labeling: 
 Packages of Cavendish, plug, twist or leaf tobacco may be used in subdivision 
 packages in the business of jobbers and may be ordered as desired from manu- 
 facturers who are responsible for their being stamped, branded, and labeled 
 in accordance with law and the regulations. (T. D. 712; October 23, 1903.) 
 31331—05 13 
 
194 
 
 Tobacco taxes — Continued. 
 
 Stamps imprinted on foil wrappers: 
 No order will be issued by a collector to a stamp agent for the delivery of 
 imprinted wrappers except upon payment by the manufacturer of the full 
 amount of tax represented by the stamps to be delivered on such order. Col- 
 lectors will report each month on Form 76 only the number and value of the 
 stamped wrappers of each kind for which they have received payment, 
 properly charged in their accounts, and made orders on stamp agents for 
 delivery. Collectors may keep a memoranda account with each manufacturer 
 in the separate record containing the entry of stamped wrappers to be imprinted, 
 crediting such account with amounts received in payment of stamps, until the 
 stamps printed on the estimate have been exhausted, but they should not 
 charge themselves in any manner on any form or report with the stamps con- 
 tained in the original estimate and entry except when amounts are ordered 
 and paid for as aforesaid. (T. D. 616; January 14, 1903.) 
 
 Trust companies. 
 
 Trust companies must include in their tax returns, as a part of their capital and 
 surplus, the sum required by law of the State to be deposited as security for 
 the faithful performance of all duties growing out of the trusts. (T. D. 401; 
 August 8, 1901.) 
 
 Twist-tobacco packages. 
 
 Section 3362, Revised Statutes, requires that all twist tobacco shall be put up in 
 wooden packages containing not exceeding 200 pounds of tobacco, and the 
 statute has not been so construed as to permit manufacturers to put up small 
 packages of plug or twist tobacco containing less than 1 pound. (T. D. 270; 
 June 24, 1901. ) 
 
 V- 
 
 Validating* unstamped instruments. 
 
 It is held by the Commissioner of Internal Revenue that where instruments 
 requiring stamps under the act of June 30, 1864, were issued without stamps, 
 stamps issued under the act of June 13, 1898, may be used in lieu of the 
 stamps of the issue of 1864, provided they are affixed in accordance with the 
 law. This office holds that section 13 of the act of June 13, 1898, controls in 
 cases of this kind. (T. D. 749; February 9, 1904.) ■ 
 Vested interests — Taxable. 
 
 Existence for vested rights determined: 
 The Commissioner holds that a vested interest exists when there is an immedi- 
 ate right of present enjoyment, or a present fixed right of future enjoyment. 
 * * * It is the present capacity of taking effect in possession, if the posses- 
 sion were to become vacant, and not the certainty that the possession mil 
 become vacant before the estate, limited in remainder determines, that dis- 
 tinguishes a vested from a contingent remainder. * * * When the event 
 on which the preceding estate is limited must happen, and when it also may 
 happen before the expiration of the estate limited in remainder, that remain- 
 der is vested. (T. D. 434; November 21, 1901.) 
 Life interest and legacy tax: 
 If a vested life interest in an estate exceeds the sum of $10,000, it is liable to 
 legacy tax. It is the life tenant's expectancy of living, as shown by approved 
 tables, which determines the value of the life interest. (T. D. 406; August 
 20, 1901.) 
 
195 
 
 Vested interests— Taxable— Continued. 
 
 Life interest and legacy tax — Continued. . 
 The vested life interest of a legatee, if the clear value of such interest, either 
 alone or taken in connection with other beneficial interests, exceeds the sum 
 of $10,000, is taxable, although no benefit from such life interest is received. 
 (T. D. 406; August 20, 1901. ) 
 
 Vested and contingent remainders: 
 
 As to vested and contingent remainders, the Commissioner holds, for purposes 
 of the legacy tax, that, when there is an immediate right of present enjoy- 
 ment, or a present fixed right of future enjoyment * * * it is the present 
 capacity of taking effect in possession, if the possession were to become vacant, 
 and not the certainty that the possession will become vacant before the estate, 
 limited in remainder determines, that distinguishes a vested from a contingent 
 remainder. * * * When the event on which the preceding estate is limited 
 must happen, and when it also may happen before the expiration of the estate 
 limited in remainder, that remainder is vested. (T. D. 434; November 21, 
 1901. ) 
 
 Violations of revenue law. 
 
 Penalty for violation of revenue law: 
 
 Where a party was indicted, November 6, 1903, charged with a violation of the 
 revenue law by selling oleomargarine without having the packages properly 
 marked and branded, as required, the evidence showed that he had the goods 
 marked and branded as required, but that the wrappers on which the marks 
 appeared were folded in such a manner as to conceal the words required by 
 the regulations. The court inflicted a penalty of ninety days' imprisonment 
 and payment of costs. Decisions of this kind will be very helpful to this office 
 in its efforts to enforce the law and regulations in reference to oleomargarine. 
 (T. D. 735; December 26, 1903.) 
 Bisk of seizure and forfeiture: 
 
 Wholesale liquor dealers who, by their own acts, place spirits in their hands in 
 an illegal condition, must assume the risk of seizure and forfeiture of the same. 
 (See Int. Rev. Circular No. 616.) (T. D. 455; January 2, 1902.) 
 Vermuth taxable as wine: 
 Vermuth is subject to stamp tax when bottled for sale as wine, without regard to 
 the nature or style of label affixed to the bottle. (T. D. 425; October 24, 1901. ) 
 Vouchers, deputy collectors. 
 
 Receipts taken by deputy collectors are often so incomplete as to be worthless as 
 vouchers .to an account. A receipt in addition to being dated must show 
 when the expenses covered by it were incurred, and the nature and particular 
 items of service; if for meals, indicate the same by their initial letters; if for 
 livery, omnibus, or hack, state the distance traveled and the date. (T. D. 
 269; January 21, 1901.) 
 
 w. 
 
 "Warehouse certificate — Special tax. 
 Conditional warehouse certificate: 
 Where conditional warehouse certificates are sold and fully paid for, the pur- 
 chaser thereby obtains all rights that he could by purchase of unconditional 
 certificates for whisky in bond, and the vender is required to pay special tax 
 as a wholesale liquor dealer. (T. D. 300; March 16, 1901.) 
 
196 
 
 Warehouse certificate — Special tax — Continued. 
 Payment of purchase money: 
 Special tax is not required to be paid for the sale at any place of a warehouse 
 certificate containing a condition in regard to payment of the purchase money, 
 if this condition is complied with by the payment, in whole or in part, of the 
 purchase money at the place of business of the seller where he holds the 
 requisite special-tax stamp as a wholesale liquor dealer. (T. D. 643; March 
 21, 1903.) 
 Warehouse receipts. 
 
 Commercial value of warehouse receipts: 
 A warehouse receipt, though not negotiable in the full sense in which a bill or 
 a note is negotiable, is quasi or commercially negotiable. It is not only a 
 receipt, but a contract to safely store and keep the goods subject to orders; 
 and, as such, the law places upon it a stamp tax, whether it be negotiated or 
 not. This construction is put upon the law by the circuit court of the United 
 States for the western division of the western district of Tennessee, and is pro- 
 mulgated by the Commissioner for the information of all concerned. (T. D. 
 469; February 5, 1902.) 
 (See also Decisions 19615; 20118.) 
 Cotton compress receipts: 
 When cotton compress receipts become warehouse receipts. When taxable and 
 when not taxable. Actual producers exempt from tax. The warehouseman 
 is required to affix and cancel the stamp on all warehouse receipts which he 
 issues and which are liable to stamp tax. (T. D. 19889; August 12, 1898.) 
 Warehouse receipts for cold storage for preservation of perishable commodities 
 are not subject to taxation. (T. D. 20000; September 2, 1898.) 
 Definition of "warehouse:" 
 A warehouse is defined as a place where goods or merchandise in considerable 
 quantities, not wanted for immediate use, are placed for safe-keeping, and are 
 kept for hire. It is held that Congress did not intend to include in Schedule 
 A places for the temporary preservation of perishable articles in small quanti- 
 ties, and receipts given therefor are not taxable. (T. D. 19737; July 20, 1898.) 
 Instrument constituting warehouse receipt: 
 The Commissioner holds that any instrument is a warehouse receipt that is 
 issued by a warehouseman, and from which the fact that certain goods, mer- 
 chandise, or property are deposited in his warehouse and held on storage for 
 some particular person or persons can be reasonably inferred. (T. D. 186; 
 July 27, 1900.) 
 Receipts for payment of storage: 
 A receipt given for the payment of storage after the storage has ceased is not 
 taxable as a warehouse receipt, but that a bill for storage rendered at the time 
 the goods are received on storage, or during the continuance of such storage, 
 is an acknowledgment that certain goods have been received and are held on 
 storage, and requires a 25-cent stamp as a warehouse receipt. (T. D. 179; 
 July 17, 1900.) 
 Receipts given in cold-storage business: 
 Warehouse receipts given by companies in the cold-storage business are subject 
 to tax, except receipts for agricultural products deposited by the actual grower 
 in the regular course of trade or sale. (T. D. 19526; June 21, 1898. ) 
 Receipts for whisky in bond : 
 Warehouse receipts for whisky in bond, although containing provisions which 
 prevent the sale and delivery from conveying to the purchaser the absolute 
 
197 
 
 "Warehouse receipts — Continued. 
 
 Receipts for whisky in bond — Continued. 
 
 ownership and possession until the conditions are complied with, require the 
 25-cent stamp under the last clause of Schedule A, war-revenue act. (T. D. 
 19689; July 13, 1898.) 
 "Warehouse receipt negotiable: 
 
 A warehouse receipt is a negotiable instrument under the law of Virginia, and 
 where the tobacco, or the warehouse receipt, is "sold at any exchange or 
 board of trade, or other similar place," a memorandum of such sale, made by 
 the seller, must be stamped and the stamp canceled, under paragraph 2, 
 Schedule A, war-revenue act. (T. D. 19744; July 21, 1898.) 
 A receipt or memorandum given by a warehouseman, or any signing by a ware- 
 houseman of an express company's book, or other receipt evidencing the fact 
 that goods have been placed on storage, is a warehouseman's receipt, and 
 requires a stamp tax of 25 cents. (T. D. 19832; August 4, 1898.) 
 The Commissioner of Internal Revenue can not decide whether the warehouse- 
 man or the private individual storing the merchandise shall affix the stamp. 
 If there is any controversy, the remedy is in the courts. (T. D. 19833; 
 August .5, 1898. ) 
 Every separate consignment requires stamp tax. Such consignment may occupy 
 several days. Stamp to be affixed to the evidence of consignment. Local 
 operators need not give bills of lading, nor are their receipts taxable. Storage 
 company, charging and receiving pay for increased risk, should pay tax for 
 insurance. (T. D. 19840; August 5, 1898. ) 
 
 Warrants of arrest. 
 Conditions precedent to arrests: 
 Collectors are instructed, in regard to warrants of arrest, that deputy collectors, 
 acting under section 19, act of May 28, 1896, should not make sworn complaints 
 upon the statements made to them by deputy marshals or private citizens, 
 unless such parties themselves know the facts and can testify to their truth- 
 fulness as witnesses at the trial. Deputies should not swear to complaints, or 
 file information before United States commissioners against parties until they 
 have examined the witnesses as to the truth of the charges and satisfied them- 
 selves that ther.e are reasonable grounds for believing that the charges are 
 true and can be sustained. (T. D. 510; April 25, 1902.) 
 
 Wines. (See also Liquors.) 
 Bottled wine taxable: 
 A tax stamp must be put on the bottle when a, customer presents it to be filled 
 with wine. (T. D. 19735; July 20, 1898. ) 
 Imported bottled wine taxable: 
 The provision of the act of June 13, 1898, in Schedule B, imposing tax on wines 
 bottled for sale, applies not only to native wines and to wines bottled in this 
 country, but also to wines bottled in foreign countries and imported into the 
 United States for sale. (T. D. 19521; June 16, 1898.) 
 Sense of stamps prohibited: 
 Stamps placed on bottled wine which failed of delivery by reason of imperfec- 
 tions discovered in the wine can not be reused. (T. D. 20159; October 10, 
 1898.) 
 Bottled wines "presented" to individuals are not exempt from stamp tax. The 
 liability to tax in cases of bottled wines given ostensibly for charitable pur. 
 poses is to be determined by the circumstances of each case. (T. D. 20205; 
 October 18, 1898. ) 
 
198 
 
 Wines — Continued. 
 
 Tax on "sparkling" wine: 
 A tax is imposed on wine (Schedule B, act of June 13, 1898), namely, "Spark- 
 ling or other wines, when bottled for sale, upon each bottle containing 1 pint 
 or less, 1 cent; upon each bottle containing more than 1 pint, 2 cents." When 
 vintners are exempt from special tax — Provisions of United States laws do not 
 interfere in any way with the provisions of the State laws or local ordinances. 
 (T. D. 20152; October 5, 1898.) 
 Wines bottled for storage: 
 Wines bottled for storage in bins for aging purposes will not be regarded as hav- 
 ing been "bottled for sale" until they arrive at a marketable condition. 
 Wines sold by dealers and delivered in bottles must be stamped. (T. D. 19942; 
 August 23, 1898. ) 
 Wines for private use: 
 Liability to stamp tax of wines bottled for private consumption of manufacturer, 
 use of employees, and samples furnished to salesmen. Tax on a quart bottle 
 may be paid with two 1-cent stamps. (T. D. 19896; August 17, 1898.) 
 
 Wines, bottled — Stamp tax. 
 
 Fermented beverage from strawberry: 
 A fermented beverage made from the juices of strawberry and cider, and called 
 "strawberry cider," is not cider, but wine, and, when bottled for sale, special 
 tax must be paid thereon, under Schedule B, act of June 13, 1898. (T. D. 321; 
 April 6, 1901. ) 
 
 Treasury decision as to bottling wine : 
 Treasury decision 19961 holds that, " where a retail dealer fills a bottle from a 
 barrel for his bar stock, from which he sells wine by the glass, he is not 
 required to stamp the bottle;" but this exemption is not applicable to cases 
 where a quantity of wine is transferred from a bulk package to bottles, there 
 to remain for some time, whether intended for sale by the glass over the bar 
 or otherwise. In such cases the general rule stated in Treasury decision 19961 
 applies, namely, that "the stamp is to be affixed when the wines are trans- 
 ferred to the bottles for sale, by the person who makes the transfer." (T. D. 
 443; December 7, 1901.) 
 
 Wine manufacturer — Special tax. 
 Exempting provision, 3246, Revised Statutes: 
 Under the construction now given by the Commissioner to the exempting pro- 
 vision of section 3246, Revised Statutes, relating to manufacturers of wine, the 
 old ruling that manufacturers are entitled to sell at two places, namely, the 
 place of manufacture of the wine and one general business office, has been 
 revoked, and it is held that a manufacturer of wine can only sell at the place 
 of manufacture, or at one business office, without being required to pay special 
 tax. (T. D. 849; December 27, 1904.) 
 Liability for spurious wines: 
 A manufacturer of spurious wines from grapes, raspberries, etc. , involves himself 
 in liability under section 3449, Revised Statutes, to a fine of $500 and to for- 
 feiture of said liquors or wines. (T. D. 477; February 26, 1902.)) 
 Wine manufacturer as rectifier: 
 There is no provision of the internal-revenue laws involving a wine manufacturer 
 in special-tax liability as a rectifier, for using cane sugar, rock-candy sirup, 
 glucose sirup, corn sugar, and granulated sugar to sweeten his wine, if the wine 
 is not fortified pure sweet wine. (T. D. 515; May 10, 1902. ) 
 
199 
 
 "Withdrawal of spirits. 
 
 Spirits not branded "alcohol'-' under section 3287, Revised Statutes, must not 
 be reported as "alcohol" nor withdrawn from bond tax free under section 
 3297, Revised Statutes. (T. D. 594; November 7, 1902.) 
 
 "Writs and processes of courts. 
 
 Act of July 1, 1862, repealed by act of 1867: 
 The act of Congress, July 1, 1862, subjected writs, warrants, cognovits, and 
 other legal documents to taxation, and thereafter the question arose in the courts 
 of several States as to the validity of the requirement. Although the plenary 
 power of Congress to raise revenue by the imposition of taxes, duties, imposts, 
 and excises was admitted, it was held not to be sufficient to establish the 
 power of Congress to tax writs and processes of State courts. On this ground, 
 this provision of the law was repealed March 2, 1867; and the Commissioner 
 holds that, as original processes can not be taxed, the copies thereof should 
 not be. (T. D. 19971; August 29, 1898.)