SEC. 1104 (Revenue Act of 1926, as amended by sec. 618, Revenue Act of 1928). The Commissioner, for the purpose of ascertaining the correctness of any return or for the purpose of making a return where none has been made, is hereby authorized, by any officer or employee of the Bureau of Internal Revenue, including the field service, designated by him for that purpose, to examine any books, papers, records, or memoranda bearing upon the matters required to be included in the return, and may require the attendance of the person rendering the return or of any officer or employee of such person, or the attendance of any other person having knowledge in the premises, and may take his testimony with reference to the matter required by law to be inIcluded in such return, with power to administer oaths to such person or persons.

SEC. 35 (Criminali Code of the United States as amended). Whoever shall make or cause to be made or present or cause to be presented, for payment or approval, to or by any person or officer in the civil, military, or naval service of the United States, or any department thereof, or any corporation in which the United States of America is a stockholder, any claim upon or against the Government of the United States, or any department or officer thereof, or any corporation in which the United States of America is a stockholder, knowing such claim to be false, fictitious, or fraudulent; or whoever shall knowingly and willfully falsify or conceal or cover up by any trick, scheme, or device a material fact, or make or cause to be made any false or fraudulent statements or representations, or make or use or cause to be made or used any false bill, receipt, voucher, roll, account, claim, certificate, affidavit, or deposition, knowing the same to contain any fraudulent or fictitious statement or entry, in any matter within the jurisdiction of any department or agency of the United States or of any corporation in which the United States of America is a stockholder; * or whoever shall enter into any agreement, combination or conspiracy to defraud the Government of the United States, or any department or officer thereof, or any corporation in which the United States of America is a stockholder, by obtaining or aiding to obtain the payment or allowance of any false or fraudulent claim; * * shall be fined not more than

$10,000 or imprisoned not more than ten years, or both. *

CHAPTER II

REGISTRY

SEC. 26 [Act of October 1, 1899]. tobacco,

* *

*

Every such dealer in leaf manufacturer [of tobacco or cigars] and peddler shall, however, register with the collector of the district his name, or style, place of residence, trade, or business, and the place where such trade or business is to be carried on, the same as though the (special) tax had not been repealed, and a failure to register as herein required shall subject such person to a penalty of fifty dollars.

ART. 12. Registry.-(a) Every dealer in leaf tobacco, manufacturer of tobacco or snuff, manufacturer of cigars or cigarettes, and peddler of tobacco must register with the collector of the district, on commencing business and thereafter on the 1st day of July of each year, his name or style, place of residence, and place where the business is carried on. The place where the business is carried on will be such premises as are described in the dealer's or manufacturer's statement on Form 772, 36, or 362, as the case may be, and are covered by his bond. In case of a peddler, the place where the business is carried on should conform with his statement on Form 95 filed with the collector. (See article 179.)

(b) Each person liable to register as a dealer, manufacturer, or peddler, on commencing business, must file, and, during the month of July of each year thereafter while thus liable, again file with the collector or deputy collector in respect to each liability a properly verified return on Form 277, printed by the Government and supplied to each collector for distribution and to be obtained from him.

(c) Return on Form 277 must show an individual dealer's or manufacturer's full name, which should be written the same as in his bond, and his style, if he is operating under a trade name. In the case of a copartnership, association, firm, or company, its style must be given, as must also the name of each member and his place. of residence. In the case of a corporation the name and title of each officer and his place of residence must be shown.

The exact location of the premises or factory, designation of business, and period for which registry is made must be stated.

An individual must himself sign and swear to the return. In case of a firm, any member thereof, and in case of a corporation, any officer authorized, may sign and swear to the return.

(d) For failure to register as required, each such person is subject to a penalty of $50.

ART. 13. Collector's certificate.-(a) When return for registry on Form 277, properly executed, is received by the collector from a dealer in leaf tobacco, manufacturer of tobacco or cigars, or peddler of tobacco, he will issue to the person named therein a certificate of registry after statement and bond have been filed as required and bond has been approved.

The collector will distinctly write or print the dealer's, manufacturer's, or peddler's registered name, address, and dealer's registry number or manufacturer's factory number, and the date of issue on the certificate before it is delivered. The firm name is the only name that is necessary in a certificate issued to a dealer or manufacturer partnership. (As to posting certificate, etc., see article 20 in respect to dealers, article 34 in respect to manufacturers of tobacco or snuff, article 63 in respect to manufacturers of cigars or cigarettes, and article 181 relating to peddlers.)

The loss or destruction of a certificate of registry should be reported to the collector at once for the purpose of obtaining from him a duplicate certificate which the collector will issue and which must likewise be posted or carried.

(b) The executors, administrators, or other legal representatives of a deceased dealer or manufacturer, likewise a receiver or referee in bankruptcy, or assignee of a dealer or manufacturer, must register the change, whether or not they purpose to close the business or to continue it. The return for registry on Form 277 in any such case must show the name of the original dealer or manufacturer, together with all other data required. (As to liability in case of failure to register, see article 12 (d).)

(c) When one or more members of a firm or partnership withdraw, the change shall be registered in the same manner as required in subdivision (b). Where new partners are taken into a firm, the new firm so constituted must make return from the 1st day of the month in which it began business, even though the name of the new firm be the same as that of the old. Where a partnership forms a corporation, return for registry must be filed and a certificate secured in the name of the corporation.

(d) Whenever a dealer or manufacturer desires to move his place of business or factory to a new location in the same district, he should, before the removal occurs, register the change of location with the collector of the district by filing an additional Form 277, executed under oath, and designated " removal registry," setting forth the time and place where he intends to engage in the business described, and if such dealer or manufacturer is a firm or corporation the names

and residences of all the members or principal officers and titles thereof, shall again be recorded. Similarly, if the street name or number (or both) of the factory's location is changed by order of a city council or similar authority, or if the name of the city or place is changed, such change should be registered by filing an additional Form 277. The dealer's or manufacturer's certificate must accompany the return for cancellation. (As to liability in case of failure to duly register a change of location, see article 12 (d).)

The collector will issue a new certificate of registry for the new location or change in name or number, or both, and enter in his alphabetical list (record 10, see article 14) on the card for said dealer or manufacturer the place to which such removal is made and the date of the removal, or the change in name or number, or both, and the date of the change.

(e) When the removal is to another collection district, the collector will note the transfer on his card (record 10) for the dealer or manufacturer, stating clearly the location to which the business is to be removed and the dealer or manufacturer, before commencing business at the new location in the other district shall register with the collector of said district as provided in article 12 (a).

ART. 14. Collector's record of dealers, manufacturers, and peddlers.Each collector is required to keep always open to the public and up to date an alphabetical list of the names of all dealers in leaf tobacco, manufacturers of tobacco, cigars, and cigarettes, and peddlers of tobacco registered in his district. Such list is known as record 10, consisting of cards, on which is required to be shown the name of each dealer and his place of business, each manufacturer, his factory number and location of factory, or each peddler and his residence, and period for which each has registered. The entries on the cards will be made from the returns on Form 277. It is permissible for any one to make a copy of such list, provided an unreasonable time is not consumed in so doing when other parties may be waiting to consult the record.

90355-34

CHAPTER III

SALE OF LEAF TOBACCO BY A FARMER OR GROWER OF TOBACCO AND BY A TOBACCO GROWERS' COOPERATIVE ASSOCIATION

SEC. 27 (Act of October 1, 1890, as amended). That all provisions of the statutes imposing restrictions of any kind whatsoever upon farmers and growers of tobacco in regard to the sale of their leaf tobacco, and the keeping of books, and the registration and report of their sales of leaf tobacco, or imposing any tax on account of such sales are hereby repealed.

SEC. 69 (Act of August 27, 1894).

*

* Provided, That farmers and growers of tobacco who sell leaf tobacco of their own growth and raising shall not be regarded as manufacturers of tobacco:

*

(f) For the purpose of this shall not be regarded

* * *

as a dealer in leaf tobacco in respect to the leaf tobacco produced by him * * *

ART. 15. Sale of leaf tobacco by farmers.-No restrictions of any kind are imposed upon farmers and growers of tobacco in regard to the sale of their leaf tobacco. No books are required to be kept, nor need any registration or report of their leaf tobacco be made, nor is any liability to tax incurred by them on account of such sales. In respect to leaf tobacco produced by them and leaf tobacco of their own growth and raising sold by them, they are not regarded as dealers in leaf tobacco or as manufacturers of tobacco. The foregoing is restricted to such leaf tobacco as the farmer has grown himself and which is in the condition as cured on the farm. A farmer may sell such leaf tobacco to any person, irrespective of whether or not such person is registered and liable to account therefor under the internal revenue laws, or is a consumer, and he may also sell any quantity, either loose in the hand or in a hogshead, case or bale, or other container.

A farmer who rents his land for growing tobacco may receive in payment of rent a portion of the crop and sell it in the same manner, and he may purchase the balance of the crop owned by his tenant; and if he sells the entire crop at a single sale he will not incur liability as a dealer in leaf tobacco. If the farmer should make a plurality of sales in order to dispose of the portion purchased from the tenant he would be liable as a dealer in leaf tobacco. (See Ch. IV.)