of the following articles when sold by or for a dealer or his estate on or after such date for consumption or use:

(1) Perfumes, essences, extracts, toilet waters, cosmetics, petroleum jellies, hair oils, pomades, hair dressings, hair restoratives, hair dyes, tooth and mouth washes, dentifrices, tooth pastes, aromatic cachous, toilet powders (other than soap powders), or any similar substance, article, or preparation by whatsoever name known or distinguished, any of the above which are used or applied or intended to be used or applied for toilet purposes;

(2) Pills, tablets, powders, tinctures, troches or lozenges, sirups, medicinal cordials or bitters, anodynes, tonics, plasters, liniments, salves, ointments, pastes, drops, waters (except those taxed under section 628 of this Act), essences, spirits, oils, and other medicinal preparations, compounds, or compositions (not including serums and antitoxins), upon the amount paid for any of the above as to which the manufacturer or producer claims to have any private formula, secret, or occult art for making or preparing the same, or has or claims to have any exclusive right or title to the making or preparing the same, or which are prepared, uttered, vended, or exposed for sale under any letters patent, or trade-mark, or which (if prepared by any formula, published or unpublished) are held out or recommended to the public by the makers, vendors, or proprietors thereof as proprietary medicines or medicinal proprietary articles or preparations, or as remedies or specífics for any disease, diseases, or affection whatever affecting the human or animal body: Provided, That the provisions of this section shall not apply to the sale of vaccines and bacterines which are not advertised to the general lay public, nor to the sale by a physician in personal attendance upon a patient of medicinal preparations not so advertised.

(b) The taxes imposed by this section shall be collected by whichever of the following methods the Commissioner may deem expedient: (1) by stamp affixed to such article by the vendor, the cost of which shall be reimbursed to the vendor by the purchaser; or (2) by payment to the vendor by the purchaser at the time of the sale, the taxes so collected being returned and paid to the United States by such vendor in the same manner as provided in section 502.

Proprietary stamps prepared and distributed under authority section 22, act October 22, 1914, can not legally be used for payment of taxes imposed by this section. D. 2893.)

(T.

Articles 5, 16, 17 (d), Regulations 51, supplemented. (T. D. 2893.) Article 5 further modified. (T. D. 2958.) Article 8 of Regulations 51, amended. (T. D. 2893.) Where excise tax is imposed directly upon vendee, sales to States or political subdivisions thereof are exempt from tax. (T. D. 2897.)

Article 20, Regulations No. 51, relating to collection of tax, amended. (T. D. 2942.)

Sec.

CHAPTER TWENTY-THREE.

STAMP TAXES ON SPECIFIC OBJECTS.1

3422. Affixing stamps to instruments

to render them valid.

3426 (amended). Superseded by Act of May 12, 1900 (amended). Redemption of stamps.

Sec.

Sec.

3429 (amended). Forging, counterfeiting, etc., or fraudulently using or selling stamps, etc.; penalties.

3437. Assessment of stamp taxes where articles are removed without being stamped.

[Title XI, act of February 24, 1919 (40 Stat., 1057).]

1101. Exemptions.

1100. Date tax effective.

1102. Penalties.

1103. Same.

See.

1106. Stamps furnished to postmasters. 1107. Sale of stamps. Schedule A. Rate of taxes on various instruments.

1104. Method of canceling stamps.

1105. Preparation and distribution of stamps; contracts; applicability of general laws.

For former acts of Congress requiring stamps to be affixed to certain written instruments, see act of July 1, 1862, Schedule B, following section 110 (12 Stat., 479); act of March 3, 1863, section 6 (12 Stat., 720); act of June 30, 1864, section 151 (13 Stat., 291); act of March 3, 1865, section 1 (13 Stat., 469); act of July 13, 1866 (14 Stat., 141); act of June 23, 1874, section 1 (18 Stat., part 3, 250).

The act of June 6, 1872, section 36 (17 Stat., 256), provided for the repeal, on and after October 31, 1872, of stamp taxes on instruments, except the tax of 2 cents on bank checks, drafts, and orders, which was repealed by the act of March 3, 1883 (22 Stat., 488).

Taxes were imposed by the act of June 13, 1898, on instruments and documents, under Schedule A thereof, and were repealed in part by the act of March 2, 1901, and wholly repealed by the war-revenue repeal act of April 12, 1902 (32 Stat., 96), taking effect July 1, 1902.

Stamp taxes on instruments were also imposed by the act of October 22, 1914, effective December 1, 1914 (Emergency Revenue Act), which by its own terms expired December 31, 1915, but was extended by joint resolution of December 17, 1915, until and including December 31, 1916, and then repealed by the act of September 8, 1916 (39 Stat., 756), effective September 9, 1916. Stamp taxes were again imposed by the War Revenue Act of October 3, 1917, going into effect December 1, 1917. SEC. 3422. *

*

* (This section was amended by the acts of February 18, 1875 (18 Stat., 319), and February 27, 1877 (19 Stat., 248), and was then superseded by section 13, act of June 13, 1898 (30 Stat., 454), which was repealed by section 7, act of April 12, 1902 (32 Stat., 96).)

See Regulations No. 40.

Redemption or refunding the

1879

SEC. 3426. [Amended by sec. 17, act of March 1, (20 Stat., 327).] Redemption of stamps, etc. This section has been superseded by the following Act:

REDEMPTION OF STAMPS.

An Act Authorizing the Commissioner of Internal Revenue to redeem or make allowance for internal-revenue stamps. (Act of May 12, 1900 (31 Stat., 177), as amended by the act of June 30, 1902 (32 Stat., 506).)

That the Commissioner of Internal Revenue, subject value of stamps to regulations prescribed by the Secretary of the Treasment of any in- ury, may, upon receipt of satisfactory evidence of the ternal revenue facts, make allowance for or redeem such of the stamps,

denoting the pay

tax.

Limitation redemption.

issued under authority of law, to denote the payment of any internal-revenue tax, as may have been spoiled, destroyed, or rendered useless or unfit for the purpose intended, or for which the owner may have no use, or which through mistake may have been improperly or unnecessarily used, or where the rates or duties repre"sented thereby have been excessive in amount, paid in error, or in any manner wrongfully collected. Such allowance or redemption may be made, either by giving other stamps in lieu of the stamps so allowed for or redeemed, or by refunding the amount or value to the owner thereof, deducting therefrom, in case of repayment, the percentage, if any, allowed to the purchaser thereof; but no allowance or redemption shall be made in any case until the stamps so spoiled or rendered useless shall have been returned to the Commissioner of Internal Revenue, or until satisfactory proof has been made showing the reason why the same can not be returned; or, if so required by the said Commissioner, when the person presenting the same can not satisfactorily trace the history of said stamps from their issuance to the presentation of his claim as aforesaid.

to

Finding of Commissioner final

Provided, That documentary and proprietary stamps issued under the provisions of "An act to provide ways and means for war expenditures, and for other purposes," approved June thirteenth, eighteen hundred and ninetyeight, may be redeemed only when presented in quantities of two dollars or more, face value;

Provided further, That no claim for the redemption of or allowance for stamps shall be allowed unless presented within two years after the purchase of said stamps from the Government, "excepting documentary and proprietary stamps issued under the Act of June thirteenth, eighteen hundred and ninety-eight, which stamps may be redeemed as hereinbefore authorized, upon presentation prior to the first day of July, nineteen hundred and four.

SEC. 2. That the finding of facts in and the decision of except in case of the Commissioner of Internal Revenue upon the merits matical mistake. of any claim presented under or authorized by this Act

fraud or mathe

shall, in the absence of fraud or mistake in måthematical calculation, be final and not subject to revision by any accounting officer.

SEC. 3. That all laws and parts of laws in conflict with any of the provisions of this Act are hereby repealed.

The American West Indies Trading Co. v. United States. (45 Ct. Cls., 488.)

Court of Claims has jurisdiction to enforce payment of a claim allowed by Commissioner and disallowed by Comptroller. (Kaufman v. United States, 11 Ct. Cls., 659; 96 U. S., 567; 24 Int. Rev. Rec., 135.) See also Woolner's case (13 Ct. Cls., 355; 24 Int. Rev. Rec., 181).

Stamps not representing revenue taxes will not be redeemed by the Government. (Letter to Collector Shearer, Oct. 28, 1897; 43 Int. Rev. Rec., 401.)

There is no material difference between the powers of the Commissioner under section 3426, and under section 3220. Under section 3426 he is to "allow" the claim, which is done either by giving other stamps in lieu of those that have been spoiled, etc., or by repaying the amount or value. Under section 3220 he is to "refund" and "

"pay back." His payments in both cases must be made through the accounting officers of the Treasury Department, as he is not himself a disbursing officer. (United States v. Savings Bank (1881), 104 U. S., 733; 28 Int. Rev. Rec., 87.)

(United States v. American Tobacco Co., 166 U. S., 468.) Internal-revenue stamps redeemable only when owned and presented for redemption by persons, or their legal representatives, authorized to purchase and use them for the payment of taxes. (T. D. 19224.)

SEC. 3429. [Amended by sec. 17, act of March 1, 1879 (20 Stat., 327); reenacted by sec. 42, act of August 27, 1894 (28 Stat., 552).]

Prima facie of

And the fact that any adhesive stamp so bought, sold, evidence offered for sale, used, or had in possession as aforesaid, washing, restor has been washed or restored by removing or altering the ing, etc. canceling or defacing marks thereon, shall be prima facie proof that such stamp has been once used and removed by the possessor thereof from some paper, instrument, or writing, charged with taxes imposed by law, in violation of the provisions of this section.

Indictment for having in possession and knowingly offering for sale washed and restored adhesive, documentary stamps. (Kaufman v. United States, 51 C. C. A., 549, 113 Fed., 919.)

Counterfeiting imitation wine or compound liquor stamps (sec. 3328, p. 325).

Counterfeiting stamps for fermented liquors (sec. 3346, p. 314).

Using imitation stamps on packages of distilled spirits (sec. 17, act of February 8, 1875 (18 Stat., 307); p. 270). Counterfeiting obligations or securities of the United States, which include stamps (secs. 147, 148, Criminal Code, act March 4, 1909, 35 Stat., 1115, p. 680, Appendix). Dealing in counterfeit securities (sec. 154, Criminal Code, act March 4, 1909, 35 Stat., 1117).

Assessment of

SEC. 3437. Whenever any article upon which a tax is stamp taxes required to be paid by means of a stamp is sold or re- when article is moved for sale by the manufacturer thereof, without the being stamped.

removed without