Chemists and

Any revenue officer may destroy any emptied oleomargarine package upon which the tax-paid stamp is found.

Failure to destroy stamp on empty package. (Morris v. U. S., 161 Fed. Rep., 672; Vermont v. U. Š., 174 Fed. Rep., 792; T. D. 1579; U. S. v. White & Paller, U. S. D. C. E. D. Pa.; T. D. 1334; U. S. v. Ripper, 178 Fed. Rep., 24; Ripper v. U. S., 179 Fed. Rep., 497; T. D. 1609.)

SEC. 14 [act of Aug. 2, 1886 (24 Stat., 212).] That there microscopists. shall be in the office of the Commissioner of Internal Revenue an analytical chemist and a microscopist, who shall each be appointed by the Secretary of the Treasury, and shall each receive a salary of two thousand five hundred dollars per annum; and the Commissioner of Internal Revenue may, whenever in his judgment the necessities of the service so require, employ chemists and microscopists, to be paid such compensation as he may deem proper, not exceeding in the aggregate any appropriation made for that purpose.

Com missioner con

to decide tested cases.

Appeal.

Forfeiture of

unstamped

deleterious oleo

And such Commissioner is authorized to decide what substances, extracts, mixtures, or compounds which may be submitted for his inspection in contested cases are to be taxed under this act; and his decision in matters of taxation under this act shall be final.

The Commissioner may also decide whether any substance made in imitation or semblance of butter, and intended for human consumption, contains ingredients deleterious to the public health; but in case of doubt or contest his decision in this class of cases may be appealed from to a board hereby constituted for the purpose, and composed of the Surgeon-General of the Army, the Surgeon-General of the Navy, and the Commissioner (now Secretary) of Agriculture; and the decisions of this board. shall be final in the premises.

SEC. 15 [act of Aug. 2, 1886 (24 Stat., 212).] That all packages and packages of oleomargarine subject to tax under this margarine. act that shall be found without stamps or marks as herein provided, and all oleomargarine intended for human consumption which contain ingredients adjudged, as hereinbefore provided, to be deleterious to the public health, shall be forfeited to the United States. Any perremoving son who shall willfully remove or deface the stamps, marks, or brands on a package containing oleomargarine taxed as provided herein shall be guilty of a misdemeanor, and shall be punished by a fine of not less than one hundred dollars nor more than two thousand dollars, and by imprisonment for not less than thirty days nor more than six months.

Penalty for

stamps.

Oleomargarine for export.

Wilkins v. U. S., 96 Fed. Rep., 837; T. D. 21623.

SEC. 16 [act of Aug. 2, 1886 (24 Stat., 212).] That oleomargarine may be removed from the place of manufacture for export to a foreign country without payment of tax or affixing stamps thereto, under such regulations and the filing of such bonds and other security as the Com

missioner of Internal Revenue, with the approval of the Secretary of the Treasury, may prescribe. Every person who shall export oleomargarine shall brand upon every tub, firkin, or other package containing such article the word "Oleomargarine," in plain Roman letters not less than one-half inch square.

Sales to vessels in ports of this country not exportation (T. D. 657, May 18, 1903; Swan & Finch Co. v. U. S., 190 U. S., 143). See Regulations No. 29 concerning exportations.

Oleomargarine reimported subject to duty equal to the internalrevenue tax, although returned to the factory for remanufacture. (T. D. 857.)

Withdrawals of oleomargarine free of tax for export where the tax remitted amounts to $100 or over can not be afterwards separated into small consignments for the purpose of being accounted for as shipments on which the tax is less than $100. (T. D. 1662.)

fraud

SEC. 17 [act of Aug. 2, 1886 (24 Stat., 212).] That when- Forfeiture and ever any person engaged in carrying on the business of and by manumanufacturing oleomargarine defrauds, or attempts to facturer. defraud, the United States of the tax on the oleomargarine produced by him, or any part thereof, he shall forfeit the factory and manufacturing apparatus used by him, and all oleomargarine and all raw material for the production of oleomargarine found in the factory and on the factory premises, and shall be fined not less than five hundred dollars nor more than five thousand dollars, and be imprisoned not less than six months nor more than three years.

Indictment. Enders v. U. S. (T. D. 1669.)

Forfeiture and penalty for defrauding or attempting to defraud. (Hardesty v. U. S., 168 Fed. Rep., 25.)

Information for forfeiture of oleomargarine plant. The language of this section is similar to that in regard to distilled spirits (sec. 3257), and decision under latter section applicable. (U. S. v. Manufacturing Apparatus, etc., of New Jersey Melting & Churning Co., 141 Fed. Rep., 475.)

for failure to comply

with law.

SEC. 18 [act of Aug. 2, 1886 (24 Stat., 212).] That if any Forfeiture manufacturer of oleomargarine, any dealer therein, or any importer or exporter thereof shall knowingly or willfully omit, neglect, or refuse to do, or cause to be done, any of the things required by law in the carrying on or conducting of his business, or shall do anything by this act prohibited, if there be no specific penalty or punishment imposed by any other section of this act for the neglecting, omitting, or refusing to do, or for the doing or causing to be done, the thing required or prohibited, he shall pay a penalty of one thousand dollars; and if the person so offending be the manufacturer of or a wholesale dealer in oleomargarine, all the oleomargarine owned by him, or in which he has any interest as owner, shall be forfeited to the United States.

Sales in quantities exceeding 10 pounds at one time by retail dealers, penalty provided in section 18 applies. (U. S. v. Řipper, 178 Fed. Rep., 24; Ripper v. U. S., 179 Fed. Rep., 497; ↑. D.

Recovery

fines.

Regulations.

Act

in

Oct. 31, 1886.

of

effect

SEC. 19 [act of Aug. 2, 1886 (24 Stat., 212).] That all fines, penalties, and forfeitures imposed by this act may be recovered in any court of competent jurisdiction.

SEC. 20 [act of Aug. 2, 1886 (24 Stat., 212).] That the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may make all needful regulations for the carrying into effect of this act.

See citations under section 6, power of Commissioner to make regulations, page 295.

SEC. 21 [act of Aug. 2, 1886 (24 Stat., 213)]. That this act shall go into effect on the ninetieth day after its passage; and all wooden packages containing ten or more pounds of oleomargarine found on the premises of any dealer on or after the ninetieth day succeeding the date of the passage of this act shall be deemed to be taxable under section eight of this act, and shall be taxed, and shall have affixed thereto the stamps, marks, and brands required by this act or by regulations made pursuant to this act; and for the purpose of securing the affixing of the stamps, marks, and brands required by this act, the oleomargarine shall be regarded as having been manufactured and sold, or removed from the manufactory for consumption or use, on or after the day this act takes effect; and such Stock on hand. stock on hand at the time of the taking effect of this act may be stamped, marked, and branded under special regulations of the Commissioner of Internal Revenue, approved by the Secretary of the Treasury; and the Commissioner of Internal Revenue may authorize the holder of such packages to mark and brand the same and to affix thereto the proper tax-paid stamps.

Butter defined.

butter defined.

See section 7, act May 9, 1902, page 304.

SEC. 4 [act of May 9, 1902 (32 Stat., 94)]. That for the purpose of this Act "butter" is hereby defined to mean an article of food as defined in "An Act defining butter, also imposing a tax upon and regulating the manufacture, sale, importation, and exportation of oleomargarine, approved August second, eighteen hundred and eightyAdulterated six; that "adulterated butter" is hereby defined to mean a grade of butter produced by mixing, reworking, rechurning in milk or cream, refining, or in any way producing a uniform, purified, or improved product from different lots or parcels of melted or unmelted butter or butter fat, in which any acid, alkali, chemical, or any substance whatever is introduced or used for the purpose or with the effect of deodorizing or removing therefrom rancidity, or any butter or butter fat with which there is mixed any substance foreign to butter as herein defined, with intent or effect of cheapening in cost the product or any butter in the manufacture or manipulation of which any process or material is used with intent or effect of causing the absorption of abnormal quantities of water, milk, or Process or reno- cream; that "process butter" or "renovated butter" is hereby defined to mean butter which has been subjected

vated butter defined.

to any process by which it is melted, clarified or refined and made to resemble genuine butter, always excepting "adulterated butter" as defined by this Act. * * *

The provisions of this section imposing special taxes on manufacturers of renovated and adulterated butter and on dealers in adulterated butter will be found on page 143, under head of Special Taxes; also the provision imposing fines for nonpayment of special tax, page 132.

notices, bonds inventories, etc.

That every manufacturer of process or renovated butter Manufacturer's or adulterated butter shall file with the collector of internal revenue of the district in which his manufactory is located such notices, inventories, and bonds, shall keep such books and render such returns of material and products, shall put up such signs and affix such number of his signs factory, and conduct his business under such surveillance of officers and agents as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may by regulation require. But the bond required of such manufacturer shall be with sureties satisfactory to the collector of internal revenue, and in a penal sum of not less than five hundred dollars; and the sum of said bond may be increased from time to time and additional sureties required at the discretion of the collector or under instructions of the Commissioner of Internal Revenue.

packages.

That all adulterated butter shall be packed by the Manufacturer's manufacturer thereof in firkins, tubs, or other wooden packages not before used for that purpose, each containing not less than ten pounds, and marked, stamped, and branded as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe; and all sales made by manufacturers of adulterated butter shall be in original stamped packages.

Dealers' packages.

Dealers in adulterated butter must sell only original or from original stamped packages, and when such original stamped packages are broken the adulterated butter sold from same shall be placed in suitable wooden or paper packages, which shall be marked and branded as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe. Every person who knowingly sells or offers for sale, or delivers or offers to deliver, any adulterated butter in any other form than in new wooden or paper packages as above described, or who packs in any package any adulterated butter in any manner contrary to law, or who falsely brands any package or affixes a stamp on any package denoting a less Penalty. amount of tax than that required by law, shall be fined for each offense not more than one thousand dollars and

be imprisoned not more than two years.

That every manufacturer of adulterated butter shall Caution label. securely affix, by pasting, on each package containing adulterated butter manufactured by him a label on which shall be printed, besides the number of the manufactory and the district and State in which it is situated, these

Penalty.

Tax on adulterated butter

words: "Notice. That the manufacturer of the adulterated butter herein contained has complied with all the requirements of law. Every person is cautioned not to use either this package again or the stamp thereon, nor to remove the contents of this package without destroying said stamp, under the penalty provided by law in such cases." Every manufacturer of adulterated butter who neglects to affix such label to any package containing adulterated butter made by him, or sold or offered for sale for or by him, and every person who removes any such label so affixed from any such package shall be fined fifty dollars for each package in respect to which such offense is committed.

That upon adulterated butter, when manufactured or and process or sold or removed for consumption or use, there shall be renovated butter. assessed and collected a tax of ten cents per pound, to be paid by the manufacturer thereof, and any fractional part of a pound shall be taxed as a pound, and that upon process or renovated butter, when manufactured or sold or removed for consumption or use, there shall be assessed and collected a tax of one-fourth of one cent per pound to be paid by the manufacturer thereof, and any fractional part of a pound shall be taxed as a pound. The tax to be levied by this section shall be represented by coupon stamps, and the provisions of existing laws governing engraving, issuing, sale, accountability, effacement, and destruction of stamps relating to tobacco and snuff, as far as applicable, are hereby made to apply to the stamps provided by this section.

Stamps.

That the provisions of sections nine, ten, eleven, twelve, thirteen, fourteen, fifteen, sixteen, seventeen, eighteen, nineteen, twenty, and twenty-one of "An Act defining butter, also imposing a tax upon and regulating the manufacture, sale, importation, and exportation of oleomargarine," approved August second, eighteen hundred and eighty-six, shall apply to manufacturers of "adulterated butter" to an extent necessary to enforce the marking, branding, identification, and regulation of the exportation and importation of adulterated butter.

Butter containing 16 per cent or more of moisture is held to be adulterated. (Regulations No. 9, concerning adulterated butter and process or renovated butter.)

Explanation of regulations concerning adulterated butter. (T. D. 1009, June 6, 1906.)

Authority of Commissioner to fix moisture limit-intent to manufacture not material if process has that effect. (Coopersville Cooperative Creamery Co. v. Lemon, 163 Fed. Rep., 145; T. D. 1371; T. D. 1679, March 3, 1911.)

Refined butter, manufactured from salt, glucose, and imported low-grade or "grease" butter, is held subject to tax as adulterated butter. (T. D. 557, July 19, 1902.)

Ladled butter containing 16 per cent of moisture liable to stamp tax at 10 cents per pound. (T. D. 783.)

Evidence showing reasonable diligence to keep moisture content within requirements of law not sufficient to relieve from liability. (West Point Butter and Creamery Co. v. Hammond, collector. Cir. Ct. 8th circuit, T. D. 1667, December 28, 1910.) Forwarding samples for analysis. (T. D. 1587.)