of cigars.

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

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

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

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

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

Special tax, dealers in leaf tobacco. (Vol. 2, Treas. Dec. (1898), Decisions Nos. 19619, 19801, 19822, 19876, 19877 and 19962.) Special tax liability of a person buying leaf tobacco exclusively for export by himself. (Vol. 3, Treas. Dec. (1900), Int. Rev., No. 28).

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

Quasi manufacturers of tobacco and dealers in stems, refuse, scraps, etc., of tobacco are required to register and pay the minimum tax of $6 imposed on inanufacturers of tobacco. (Vol. 2, Treas. Dec. (1898), No. 19844.)

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

Sale of leaf tobacco in quantities less than a hogshead, case, or bale. (Int. Rev. Circular No. 523, Feb. 10, 1899; Vol. 1, Treas. Dec., No. 20750.)

Penalty.

Manufacturers

SEC. 36. Act of June 13, 1898 (30 Stat., 448). That every person, firm, or corporation, before engaging in the business of mixed flour. making, packing, or repacking mixed flour, shall pay a special tax at the rate of twelve dollars per annum, the same to be paid and posted in accordance with the provisions of sections thirty-two hundred and forty-two and thirty-two hundred and thirty-nine of the Revised Statutes, and subject to the fines and penalties therein imposed Penalty. for any violation thereof.

CHAPTER FOUR.

DISTILLED SPIRITS.

[3317a] (amended). Rectifier's notice of Act of March 3, 1897. Bottling of distilled

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

See section 3282 as to vinegar makers, p. 170.

To make one in possession of a still a distiller because he

Distilled spir its, definition of.

Standard of proof spirits;

frauds.

keeps mash, wort, or wash, the mash, wort, or wash must be
such as will produce spirits on distillation. (United States c.
House and Lot No. 3 Abattoir Place; 25 Int. Rev. Rec., 319.)
Special tax on distillers repealed, act of June 6, 1872.
A corporation may carry on the business of distilling.
meaning of the word "person" in this chapter.
Gen., 230; 23 Int. Rev. Rec., 141.)

Also,

(15 Op. Atty.

SEC. 3248. Distilled spirits, spirits, alcohol, and alcoholic spirit, within the true intent and meaning of this act, is that substance known as ethyl alcohol, hydrated oxide of ethyl, or spirit of wine, which is commonly produced by the fermentation of grain, starch, molasses, or sugar, including all dilutions and mixtures of this substance; and the tax shall attach to this substance as soon as it is in existence as such, whether it be subsequently separated as pure or impure spirit, or be immediately, or at any subsequent time, transferred into any other substance, either in the process of original production or by any subsequent process.

Under the internal-revenue laws the tax on spirits attaches as soon as they come into existence, and must be paid by the manufacturer, even in case of their destruction, unless the circumstances on which he relies for exemption come within the particular description in some one of the remedial statutes. (Greenbrier Distillery Company . Johnson, 88 Fed. Rep., 638.) SEC. 3249. Proof spirit shall be held to be that alcoholic prevention of liquor which contains one-half its volume of alcohol of a specific gravity of seven thousand nine hundred and thirtynine ten thousandths (.7939) at sixty degrees Fahrenheit. And for the prevention and detection of frauds by distillers of spirits, the Commissioner of Internal Revenue may prescribe for use such hydrometers, saccharometers, weighing and gauging instruments, or other means for ascertaining the quantity, gravity, and producing capacity of any mash, wort, or beer used, or to be used, in the production of distilled spirits, and the strength and quantity of spirits subject to tax, as he may deem necessary; and he may prescribe rules and regulations to secure a uniform and correct system of inspection, weighing, marking, and gauging of spirits.

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

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

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

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

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

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

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

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

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

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

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

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

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

A new edition of the Internal-Revenue Gaugers' Manual, embracing regulations and instructions and tables prescribed by the Commissioner of Internal Revenue by virtue of section 3249, R. S., has been issued (1900).

Gallon as used in sales, defini

SEC. 3250. In all sales of spirits a gallon shall be held to be a gallon of proof spirit, according to the standard pre- tion of. scribed in the preceding section, set forth and declared for