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Indian Territory: The Cherokee Tobacco (Boudinot's factory) (11 Wall., 616; 14 Int. Rev. Rec., 11).

In the Cherokee tobacco case (11 Wall., 616) the Supreme Court ruled that the Indian Territory was included in the general terms of this section, notwithstanding any prior treaty, and that the provisions of the internal-revenue law as to distilled spirits, fermented liquors, and tobacco were applicable therein.

Liquor Dealers in Indian Territory. (22 Int. Rev. Rec., 109; 23 ibid., 125. United States v. Forty-three Gallons of Whisky; 108 U. S., 491; 29 Int. Rev. Rec., 188.)

Introduction of spirituous liquors in Indian country. (Secs. 2139, 2140, R. S.)

What constitutes “Indian country." (Bates r. Clark, 95 U. S., 204; United States 1. Forty-three Gallons of Whisky, 93 U. S., 188.)

Section 2141, Revised Statutes, provides as follows: Every person who shall, within the Indian country, set up or continue any distillery for manufacturing ardent spirits shall be liable to a penalty of one thousand dollars; and the superintendent of Indian affairs, Indian agent, or subagent, within the limit of wlose agency any distillery of ardent spirits is set up or continued, sball forth with destroy and break up the same.

The Attorney-General, in an opinion rendered October 4, 1898, held that the establishment of a distillery in the Indian Territory, notwithstanding it was on land to which the Indian title was extinct, would be in contravention of law.

(Vol. 2, Treas. Dec. (1898), No, 20162.)

Special-tax stamps, being only receipts for taxes paid, may be issued by the collector of internal revenue, notwithstanding acts of Congress relative to sale of liquors in the Indian Territory. (Vol. 1, Treas. Dec. (1898), No. 18911.)

Au act to establish a United States court in the Indian Terri-
tory. (Act of Mar. 1, 1889, (25 Stat., 783.)

Iudian Territory added to the collection district of Kangas
August 8, 1881.

An act to provide a temporary government for the Territory
of Oklahoma, to enlarge the jurisdiction of the United States
court in the Indian Territory, and for other purposes. (Act of
May 2, 1890, 26 Stat., 81.)

Oklahoma. (19 Op. Atty. Gen., 569.)
Alaska added to Oregon district December 27, 1872.

Alaska. case of Savalotf (17 Int. Rev. Rec., 20); case of Stephens
(28 ibid., 194).

The payment of the special tax is no defense to a prosecution for illegally selling liquors in Alaska. (Endleman r. United States, 86 Fed. Rep., 456.)

An act to detine and punish crimes in the District of Alaska, and to provide a code of criminal procedure for said district. Act of March 3, 1899 (30 Stat., 1274). Section 142 repeals section 1955, Revised Statutes, and all that part of section 14 of the act of May 17, 1884 (23 Stat., 24), after the word “provided.”

Section 477 provides: “That nothing in this act shall in any way repeal, conflict, or interfere with the public general laws of the United States imposing taxes on the manufacture and sale of intoxicating liquors for the purpose of revenue and

known as the internal-revenue laws.”” SEC. 3449. Whenever any person ships, transports, or removing any removes any spirituous or fermented liquors or wines, liquors or wines

than under any other than the proper name or brand known to trade names; the trade as designating the kind and quality of the con

penalty. tents of the casks or packages containing the same, or causes such act to be done, he shall forfeit said liquors or wines, and casks or packages, and be subject to pay a fine of five bundred dollars.

Construction of this section in case of shipment of spirits under a false designation. (Attorney-General Taft's letter to Secretary of the Treasury; 22 Int. Rev. Rec., 261.)

Stamps, marks, and brands not to be obscured by overpackage. (30 Int. Rev. Rec., 278.)

The requirements of this statute can not be limited to distil. lers, manufacturers, and rectifiers, as its language covers all persons who ship, transport, or remove liquors or wines. (United States v. Campe et al., N. Dist. Cal. (1898), 89 Fed. Rep., 697.)

Section 3149 not unconstitutional because in some cases it incidentally acts as a protection to trade-marks. (United States v. Loeb (1892), 49 Fed. Rep., 636; 38 Int. Rev. Rec., 78.)

The term “package," as used in section 3449, includes every box, barrel, or other receptacle into which distilled spirits have been placed for shipment or removal, either in quantity or in separate small packages, as bottles or jugs. (United States r. 132 Packages of Spirituous Liquors and Wines et al. (1896), Circuit Court of Appeals, 76 Fed. Rep., 364; 42 Int. Rev. Rec.,

438.) Remoring or SEC. 3450. Whenever any goods or commodities for or in concealing arti. cles with intent respect whereof any tax is or shall be imposed, or any matodefesaur luited terials, utensils, or vessels proper or intended to be made


use of for or in the making of such goods or commodities are removed, or are deposited or concealed in any place, with intent to defraud the United States of such tax, or any part thereof, all such goods and commodities, and all such materials, utensils, and vessels, respectively, shall be forfeited; and in every such case all the casks, vessels, cases, or other packages whatsoever, containing, or which shall have contained, such goods or commodities, respectively, and every vessel, boat, cart, carriage, or other conveyance whatsoever, and all horses or other animals, and all things used in the removal or for the deposit or concealment thereof,

respectively, shall be forfeited. Penalty and

And every person who removes, deposits, or conceals, or is concerned in removing, depositing, or concealing any goods or commodities for or in respect whereof any tax is or shall be imposed, with intent to defraud the United States of such tax or any part thereof, shall be liable to a fine or penalty of not more than five hundred dollars. And all boilers, stills, or other vessels, tools and implements, used in distilling or rectifying, and forfeited under any of the provisions of this Title, and all condemned material, together with any engine or other machinery connected therewith, and all empty barrels, and all grain or other material suitable for distillation, shall, under the direction of the court in which the forteiture is recovered, be sold at public auction, and the proceeds thereof, after deducting

the expenses of sale, shall be disposed of according to law. Spirits forfeit And all spirits or spirituous liquors which may be for: ed; how disposed feited under the provisions of this Title, unless herein other.

wise provided, shall be disposed of by the Commissioner of Internal Revenue as the Secretary of the Treasury may direct.



An unofficial person may seize property as forfeited to the United States, and the Government, if it chooses, may adopt the seizure and make it the basis of legal proceedings. (13 Op. Atty. Gen., 253.)

Rules of the Supreme Court relating to pleadings in cases of seizure, etc., construed. (United States 1. Twenty-five Barrels of Alcohol, 10 Int. Rev. Rec., 17.)

Circular No. 221, relative to destruction of spirits. (26 Int. Rev. Rec., 105.)



frand of revenue


SEC. 3451. Every person who simulates or falsely or fraud


executing docu. ulently executes or signs any bond, permit, entry, or other required document required by the provisions of the internal-revenue by internal reve.

pen. laws, or by any regulation made in pursuance thereof, or alty. who procures the same to be falsely or fraudulently executed, or who advises, aids in, or connives at such execution thereof, shall be imprisoned for a term not less than one year nor more than five years; and the property to which such false or fraudulent instrument relates sball be forfeited.

See sections 5418, p. 391, and 5479, p. 392, in appendix, penalties for forging, altering, counterfeiting affidavits, bonds, public records, etc.

Fraudulent Form 122 forfeits spirits to which it relates. (Thacher, claimant of 102 packages of distilled spirits, v. The United States, 103 U'. S. (13 Otto), 679, affirming 15 Blatch, 15;

27 Int. Rev. Rec., 144.) SEC. 3452. Every person who shall have in his custody Having proper or possession any goods, wares, merchandise, articles, or with potente 40

ty in possession objects on which taxes are imposed by law, for the purpose sell in fraud of of selling the same in fraud of the internal-revenue laws, or taxes; penalty.

law, or to evade with design to avoid payinent of the taxes imposed thereon, shall be liable to a penalty of five hundred dollars or not less than double the amount of taxes fraudulently attempted to be evaded. SEC. 3453. All goods, wares, merchandise, articles, or

Seizure of

property found objects, on which taxes are imposed, which shall be found in possession in in the possession, or custody, or within the control of any fawr person, for the purpose of being sold or removed by him in tures. fraud of the internal-revenue laws, or with design to avoid payment of said taxes, may be seized by the collector or deputy collector of the proper district, or by such other collector or deputy collector as may be specially authorized by the Commissioner of Internal Revenue for that purpose, and shall be forfeited to the United States. And all raw materials found in the possession of any person intending to manufacture the same into articles of a kind subject to tax for the purpose of fraudulently selling such manufactured articles, or with design to evade the payment of said tax; and all tools, implements, instruments, and personal property whatsoever, in the place or building, or within any yard or inclosure where such articles or raw materials are found, may also be seized by any collector or deputy collector, as aforesaid, and shall be forfeited as aforesaid. The proceedings to enforce such forfeitures shall be in the nature of a proceeding in rem in the circuit court or district court of the United States for the district where such seizure is made.

Property liable to forfeiture without any regard to the mis-
conduct of owner. (United States v. Two Bay Mules, 36 Fed.
Rep., 84.)

United States v. Distillery at Spring Valley (11 Blatch., 255;
18 Int. Rev. Rec., 59) and decisions cited under section 3281, p. 167.

Mixture or confusion of fraud spirits with others. (The Dis-
tilled Spirits (Harrington's), 11 Wall., 356; 13 Int. Rev. Rec., 193;
10 ibid., 164. United States r. One Still, 5 Blatch., 403; 5 Int.
Rev. Rec., 189.)

An acquittal in a criminal prosecution is a bar to a proceeding in rem when the offense is the same. (Coffee v. United States, 116 U. S., 436; 32 Int. Rev. Rec., 38.)

Burden of proof: There is a distinction between civil and criminal cases in respect to the degree or quantum of evidence necessary to justify the jury in finding their verdict. In civil cases their duty is to find for the party in whose favor it preponderates. Innocence is presumed in a criminal case until the contrary is proven; but the presumption of innocence as probative evidence is not applicable in civil cases nor in revenue seizures. (Lilienthal's Tobacco v. United States, 97 U. S., 237; 24 Int. Rev. Rec., 60.)

Proceedings for forfeiture are civil, not criminal proceedings.

L'nited States 1. Three Tons of Coal, 21 Int. Rev. Rec., 251.) Sales to erade SEC. 3454. Whenever any person who is liable to pay any tax; forfeiture.

tax upon any goods, wares, or merchandise, sells or causes or allows the same to be sold before the tax is paid to which said property is liable, with intent to avoid such tax, or in fraud of the internal-revenue laws, any debt contracted in such sales, and any security given therefor, unless the same shall have been bona fide transferred to an innocent bolder, shall be void, and the collection thereof shall not be enforced in any court. And if such goods, wares, or merchandise have been paid for, in whole or in part, the sum so paid shall be deemed forfeited, and any person who shall sue for the same in an action of debt shall recover from the seller the amount so paid, one-half to his own use and the other half

to the use of the United States. Disposing of or SEC. 3455. Whenever any person sells, gives, purchases, receiving empty stampell pack or receives any box, barrel, bag, vessel, package, wrapper, ages, etc.; penal-cover, or envelope of any kind, stamped, branded, or marked

in any way so as to show that the contents or intended contents thereof have been duly inspected, or that the tax thereon has been paid, or that any provision of the internalrevenue laws has been complied with, whether such stamp. ing, branding, or marking may have been a duly authorized act or may be false and counterfeit, or otherwise without authority of law, said box, barrel, bag, vessel, package, wrapper, cover, or envelope being empty, or containing any. thing else than the contents which were therein when said articles had been so lawfully stamped, branded, or marked

by an officer of the revenue, he shall be liable to a penalty of Manufacturing, not less than fifty nor more than five hundred dollars. And etc., such pack.

every person who makes, manufactures, or produces any box, barrel, bag, vessel, package, wrapper, cover, or envel. ope, stamped, branded, or marked, as above described, or stamps, brands, or marks the same, as hereinbefore recited, shall be liable to penalty as before provided in this section. And every person who violates the foregoing provisions of this section, with intent to defraud the revenue, or to defraud any person, shall be liable to a fine of not less than one thousand nor more than five thousand dollars, or to imprisonment for not less than six months nor more than five years, or to both, at the discretion of the court. Aud all articles sold, given, purchased, received, made, manufactured, produced, branded, stamped, or marked in viola

tion of the provisions of this section, and all their contents, Vorbal error shall be forfeited to the United States. corrected.

A person can not buy a package containing distilled spirits, already stamped and branded, and take out the contents and put in other distilled spirits of a lower proof, without rendering the property subject to forfeiture. (United States v. Nine Casks and Packages of Distilled Spirits, 51 Fed. Rep., 191.)


dealers and man.


Verbal error corrected.

SEC. 3456. If any distiller, rectifier, wholesale liquor Penalty and

forfeiture by disdealer, or manufacturer of tobacco or cigars, shall know- tillers, rectifiers,

wholesale liquor ingly or willfully omit, neglect, or refuse to do or cause to be done any of the things required by law in the carrying ufacturers of toon or conducting of his business, or shall do anything by for omitting this Title prohibited, if there be no specific penalty or pun- things required, ishment imposed by any other section of this Title for the

things forbidden. neglecting, omitting or refusing to do, or for the doing or causing to be done the thing required or prohibited, he shall, Act Feb. 27,

1877. (19 Stat., pay a penalty of one thousand dollars; and if the person 240.) so offending be a distiller, rectitier, or wholesale liquor dealer, all distilled spirits or liquors owned by him or in which he bas any interest as owner, and if he be a manufacturer of tobacco or cigars, all tobacco or cigars found in bis manufactory shall be forfeited to the United States.

United States v. Two hundred Barrels Whisky (95 U, S., 571; 24 Int. Rev. Rec., 3). United States 1. One hundred and thirtythree Casks of Distilled Spirits (11 Int. Rev. Rec., 191). United States 1. One thousand four hundred and twelve Gallons Distilled Spirits (10 Blatch., 428; 17 Int. Rev. Rec., 86). United States v. One Rectifying Establishment (11 Int. Rev. Rec., 45).

This section was not intended to cumulate or increase punishment. (United States v. Four thousand eight hundred Gallons of Spirits, 13 Jnt. Rev. Rec., 52).

Intent. (Felton ». United States, 96 U. S., 699; 24 Int. Rer.

Rec., 252.) SEC. 3457. In every case where any goods or commodities Package in

cluded in forfeitare forfeited under any internal-revenue law, all casks, ves- ure of goods. sels, cases, or other packages whatsoever, containing, or which shall bave contained such goods or commodities, re. spectively, shall be forfeited. SEC. 3458. Any goods, wares, merchandise, articles, or

Goods seized

may be delivered objects which may be seized, under the provisions of section to marshal before thirty-four hundred and fifty-three, by any collector or dep

process issnes. uty collector, may, at the option of the collector, be deliv. ered to the marshal of the district, and remain in the care and custody and under the control of said inarshal, until he shall obtain possession by process of law. And the cost of Cost of seizure. seizure made before process issues shall be taxable by the court. And where any whisky or tobacco, or other article Whisky, tobacof manufacture or produce, requiring brands, stamps or distraint, fortritmarks of whatever kind to be placed thereon, shall be sold ure, etc: marks:

, upon distraint, forfeiture, or other process provided by law, stamps to bo af

. the same not having been branded, stamped, or marked, as required by law, the officer selling the same shall, upon sale thereof, fix or cause to be affixed the brands, stamps, or marks, so required, and deduct the expense thereof from the proceeds of such sale.

Stamping tobacco, snuff, or cigars sold under distraint or forfeited. (p 3369, p. 245.)

Destruction of forfeited tobacco, snuff, or cigars which will
not sell for a price equal to the tax. (0 3369, p. 245.)

Provision where spirits will not sell for price equal to tax.
(Ó 3334, p. 209, 3450, p. 312.)
Property sold under distraint. (Ø 3191, p. 91.)

Payment of the tax on forfeited spirits by the marshal out of
proceeds of sale discharges liability of suroties on warehouse
bond for tax. (United States r. Ulrici, 111 U.S., 38; 30 Int. Rev.
Rec., 111.)

co, etc., sold on

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