the number of cigar-makers employed by him he shall immediately give notice thereof to the collector of the district; that he shall stamp, in accordance with law, all cigars manufactured by him before he offers the same or any part thereof for sale, and before he removes any part thereof from the place of manufacture; that he shall not knowingly sell, purchase, expose, or receive for sale, any cigars which have not been stamped as required by law; and that he shall comply with all the requirements of law relating to the manufacture of cigars. Every cigar-manufacturer shall obtain from the collector of the district, who is hereby reCertificate. quired to issue the same, a certificate setting forth the number of cigar-makers for which the bond has been given, and shall keep the same posted in a conspicuous place within the manufactory; and every cigar-manufacturer who neg. lects or refuses to obtain such certificate, or to keep the same posted as herein before provided, shall be fined one hundred dollars.

Form No. 411.

Penalty.

Cigarettes and cheroots held to be cigars.

Manufacturer's

sign.

And every person who manufactures cigars of any description, without first giving bond as herein required, shall be fined not less than one hundred dollars nor more than five thousand dollars, and imprisoned not less than three months nor more than five years.

Cigarettes and cheroots shall be held to be cigars under the meaning of this chapter.

The amendment made to this section by the act of March 1, 1879, struck out after the words conditioned that" in the second sentence the words "he shall not employ any person to manufacture cigars who has not been duly registered as a cigar maker."

Definition of manufacturer of cigars, see p. 129.

Special taxes of manufacturers of cigars, p. 141.

On this section see 16 Op. Atty. Gen., 89; 24 Int. Rev. Rec., 227. The same premises or room can not be used for carrying on the business of a cigar manufacturer and a dealer in cigars. (Crisp v. Proud, 4 Hughes, 57; 24 Int. Rev. Rec., 340.)

A manufacturer of cigars in his statement set forth that the room adjoining the store in the rear on the first floor of certain premises as the place where his manufacture was to be carried on. Circular No. 181 required that a cigar factory should be at least an entire room, "separated by wall and partition from all other parts of the building," and that the factory should not any part of it be used, even though marked off or separated from the remainder by a railing, counter, bench, screen, or curtain, as a store where the manufacturer can sell his cigars otherwise than in legal boxes properly branded, labeled, and stamped. The court held that the requirements of the circular were within the power of the Commissioner to prescribe under section 3396. (Ludloff et al. v. United States, 108 U. S., 176; 29 Int. Rev. Rec., 125.)

There must be a line of demarcation between the place of sale and the place of manufacture of cigars, even where the whole business is carried on in one room, and cigars can not be removed from the latter to the former until packed in boxes, stamped, labeled, and branded as required by law. (United States v. Julius Neid, 13 Int. Rev. Rec., 28.)

SEC.3388. Every cigar-manufacture, shall place and keep on the side or end of the building within which his business is carried on, so that it can be distinctly seen, a sign, with letters thereon not less than three inches in length, painted in oil-colors or gilded, giving his full name and business. Any person neglecting to comply with the requirements of

this section shall on conviction, be fined not less than one hundred dollars nor more than five hundred dollars.

ufacturers of

Form No. 11.

SEC. 3389, as amended by section 34, act of October 1, 1890 (26 Stat., Record of man620). Every collector shall keep a record, in a book provided cigars to be kept for that purpose, to be open to the inspection of only the by collector. proper officers of internal-revenue, including deputy collectors and internal-revenue agents, of the name and residence of every person engaged in the manufacture of cigars in his district, the place where such manufacture is carried on, and the number of the manufactory; and he shall enter in said record, under the name of each manufacturer an abstract of his inventory and monthly returns; and he shall cause the several manufacturers of cigars in the district to be numbered consecutively, which number shall not thereafter be changed.

Annual inventory, book en

SEC. 3390. Every person now or hereafter engaged in the manufacture of cigars shall make and deliver to the col- tries, and monthlector of the district a true inventory, in such form as may manufacturer ly abstracts of be prescribed by the Commissioner of Internal Revenue, of Form No. 70b. the quantity of leaf tobacco, cigars, stems, scraps, clippings, and waste, and of the number of cigar-boxes and the capacity of each box, held or owned by him on the first day of January of each year, or at the time of commencing and at the time of concluding business, if before or after the first of January; setting forth what portion and kinds of said goods were manufactured or produced by him, and what were purchased from others, and shall verify said inventory by his oath indorsed thereon. The collector shall make personal examination of the stock sufficient to satisfy himself as to the correctness of the inventory; and shall verify the fact of such examination by oath to be indorsed on the inventory. Every such person shall also enter daily in a book, the form of which shall be prescribed by the Commissioner of Internal Revenue, an accurate account of all the articles aforesaid purchased by him, the quantity of leaftobacco, cigars, stems, or cigar-boxes, of whatever description, manufactured, sold, consumed, or removed for consumption or sale, or removed from the place of manufacture; and shall, on or before the tentu day of each and every month, furnish to the collector of the district a true and accurate abstract from such book, verified by his oath, Form No. 72. of all such purchases, sales, and removals made during the month next preceding. In case of refusal or willful neglect to deliver the inventory or keep the account, or furnish

Verification of inventory.

Form No. 73.

the abstract aforesaid, he shall be fined not less than five Penalty.
hundred dollars nor more than five thousand dollars, and
imprisoned not less than six months nor more than three
years.

All tobacco to be accounted for in the condition in which it is
purchased-tobacco stemmed in the factory to be reduced by
the collector to unstemmed. (Vol. 1, Treas. Dec. (1898), No.
18995.)

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 10228-17

Dealers in ma. terial for cigars

cigar factory, improperly entered on record Book 73, and
monthly return, Form 72, must be stricken from these records
and eliminated from the accounts. (Vol. 2, Treas. Dec. (1899),
No. 21449.)

Circular letter to collectors as to annual abstracts.
Rev. Rec., 453.)

(43 Int.

SEC. 3391. It shall be the duty of every dealer in leafto make sworn tobacco or material used in manufacturing cigars, on destatement, when mand of any officer of internal revenue, to render to such demanded. officer a true and correct statement, under oath, of the

quantity and amount of such leaf tobacco or materials sold or delivered to any person named in such demand; and in case of refusal or neglect to render such statement, or if there is cause to believe such statement to be incorrect or Examination fraudulent, the collector shall make an examination of persons, books, and papers in the manner provided in this Title in relation to frauds and evasions.

of books.

See sections 3163a, p. 73; 3173, p. 80, and 3176, p. 83.

SEC. 3392, as amended by section 32, act of October 1, 1890 (26 Stat., How cigars 619). All cigars shall be packed in boxes not before used

section 3392.

are to be packed. for that purpose, containing respectively twenty-five, fifty, one hundred, two hundred, two hundred and fifty, or five Amending hundred cigars each: Provided, however, That manufac turers of cigars shall be permitted to pack in boxes not before used for that purpose cigars not to exceed thirteen nor less than twelve in number, to be used as sample boxes; and every person who sells, or offers for sale, or delivers, or offers to deliver, any cigars in any other form than in new boxes as above described, or who packs in any box any cigars in excess of or less than the number provided by law to be put in each box respectively, or who falsely brands any box, or affixes a stamp on any box denoting a less 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: Provided, That nothing in this section shall be construed as preventing the sale of cigars at retail by retail dealers who have paid the special tax as such from boxes packed, stamped, and branded in the manner prescribed by law: And provided further, That every How cigarettes manufacturer of cigarettes shall put up all the cigarettes are to be put up that he manufactures or has manufactured for him and and stamped.

Penalty.

sells or removes for consumption or use, in packages or parcels containing ten, twenty, fifty, or one hundred cigarettes each, and shall securely aflix to each of said packages or parcels a suitable stamp denoting the tax thereon, and shall properly cancel the same prior to such sale or removal for consumption or use, under such regulations as the CommisImported cig- sioner of Internal Revenue shall prescribe; and all ciga rettes imported from a foreign country shall be packed, stamped, and the stamps canceled in like manner, in addition to the import stamp indicating inspection of the custom-house before they are withdrawn therefrom.

arettes.

Relative to packing, marking, and labeling cigarettes and small cigars weighing not more than 3 pounds per 1,000. (Cigar Manufacturers' Tax Manual, Special No. 85, p. 22.)

Wood, metal, paper, or other materials may be used separately or in combination for packing cigars under such regulations as the Commissioner of Internal Revenue may establish. (§ 3362 amended, p. 240.)

A cigar-vending machine so constructed that the cigars can be delivered directly to the purchaser from original stamped packages, and such packages can be officially inspected without unlocking the machine, approved. (Vol. 1, Treas. Dec. (1898), No. 18944.)

tice on cigars.

SEC. 3393, as amended by section 16, act of March 1, 1879 (20 Stat., 327). Every manufacturer of cigars shall securely affix, by Label and nopasting on each box containing cigars manufactured by or for 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 words:

NOTICE. The manufacturer of the cigars herein contained has complied with all the requirements of law. Every person is cautioned not to use either this box for cigars again, or the stamp thereon again, nor to remove the contents of this box without destroying said stamp, under the penalties provided by law in such cases.

Every manufacturer of cigars who neglects to affix such label to any box containing cigars made by or for him, or sold or offered for sale by or for him, and every person who removes any such label, so affixed, from any such box, shall be fined fifty dollars for each box in respect to which such Penalty. offense is committed.

Cigars exported exempted from the provisions of this section. (See 3397, p. 262.)

The name of a person other than the manufacturer can not appear on the caution-notice label unless associated with the manufacturer's name. The manufacturer may print or affix the name of the dealer upon cigar boxes when such printed matter does not indicate that such dealer made the cigars. (Vol. 1, Treas. Dec. (1898), No. 19088.)

SEC. 3394, as amended by section 2, act of March 3, 1875 (18 Stat., 339); section 4, act of March 3, 1883 (22 Stat., 488); section 10, act of July 24, 1897, (30 Stat., 206); and section 3, act of June 13, 1898 (30 Stat., 449). Upon Tax to be paid by manufaccigars and cigarettes which shall be manufactured and sold, turer. or removed for consumption or sale, there shall be levied and collected the following taxes, to be paid by the manufacturer thereof, namely, a tax of three dollars and sixty Rate of tax. cents per thousand on cigars of all descriptions made of tobacco, or any substitute therefor, and weighing more than three pounds per thousand, and of one dollar per thousand on cigars made of tobacco, or any substitute therefor, and weighing not more than three pounds per thousand; and a tax of three dollars and sixty cents per thousand on cigarettes, made of tobacco, or any substitute therefor, and weighing more than three pounds per thousand; and one dollar and fifty cents per thousand on cigarettes, made of tobacco, or any substitute therefor, and weighing not more than three pounds per thousand:

classed as ciga rettes.

Provided, That all rolls of tobacco, or any substitute there- Tobacco when for, wrapped with tobacco, shall be classed as cigars, and all rolls of tobacco, or any substitute therefor, wrapped in paper or any substance other than tobacco, shall be classed as cigarettes.

And the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall provide

Commissioner to provide stamps.

dies and adhesive stamps for cigars weighing not more than three pounds per thousand:

Provided, That such stamps shall be in the denominations of ten, twenty, fifty, and one hundred, and the laws Regulations. and regulations governing the packing and removal for sale of cigarettes, and the affixing and canceling of the stamps on the packages thereof, shall apply to cigars weighing not more than three pounds per thousand.

Restrictions.

None of the packages of smoking tobacco and fine cut chewing tobacco and cigarettes prescribed by law shall be permitted to have packed in, or attached to, or connected with, them any article or thing whatsoever, other than the manufacturers' wrappers and labels, the internal revenue stamp and the tobacco or cigarettes, respectively, put up therein, on which tax is required to be paid under the internal revenue laws; nor shall there 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 certificates for, any gift, prize, premium, payment, or reward.

Date of acts imposing tax on cigars and cigarettes and rates of tax.