executing docu

ments

by internal-reve

alty.

to forfeiture. (United States v. 246 Pounds Tobacco, 103 Fed., 791; United States v. Patented Machines, 99 Fed., 559; T. D. 54.)

Automobile used by employee of owner in removing distilled spirits on which tax had not been paid, with intent to defraud, was subject to forfeiture, though employee was innocent of any wrong. (United States v. Mincey, 254 Fed., 287.)

Automobile used in removing liquor on which tax has not been paid, with intent to defraud Government of tax, is subject to forfeiture. (United States v. One Saxon Automobile, 257 Fed., 251; T. D. 2789.)

Vehicle or animal committed by owner to possession of third person, who uses it in removal of goods or commodities to defraud United States of tax imposed thereon, is subject to forfeiture though owner had no knowledge of illegal use. (Logan v. United States, 260 Fed., 746.)

Fraudulently SEC. 3451. Every person who simulates or falsely or required fraudulently executes or signs any bond, permit, entry, nue laws; pen- or other document required by the provisions of the internal-revenue laws, or by any regulation made in pursuance thereof, or 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 shall be forfeited.

Having proper

ty in possession

sell in fraud of

taxes; penalty.

See section 28, act March 4, 1909 (Criminal Code), page 679, 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. 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 with intent to or possession any goods, wares, merchandise, articles, or law, or to evade objects on which taxes are imposed by law, for the purpose of selling the same in fraud of the internal-revenue laws, or with design to avoid payment 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.

Seizure of

property found

fraud of revenue

United States v. Grotenkemper (2 Bond, 140; 26 Fed. Cas., 45.)

SEC. 3453. All goods, wares, merchandise, articles, or in possession in objects, on which taxes are imposed, which shall be found laws; forfeitures. in the possession, or custody, or within the control of any person, for the purpose of being sold or removed by him in 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.

Personal property in the same inclosure with an illicit still. (United States v. Quantity of Rags, 7 Int. Rev. Rec., 123; Fed. Cas., 16103.)

Property liable to forfeiture without any regard to the misconduct of owner. (United States v. Distillery at Spring Valley, 11 Blatch., 255; 25 Fed. Cas., 854; 18 Int. Rev. Rec., 59, and decisions cited under sec. 3281, p. 227.)

(The

Mixture or confusion of fraud spirits with others. Distilled Spirits (Harrington's), 11 Wall., 356; 13 Int. Rev. Rec., 193; 10 Id., 164. United States v. 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.)

Forfeiture not a bar to prosecution for crime committed. (Wood v. United States, 204 Fed., 55; T. D. 1836.)

Effect of conviction. (United States v. 71 Barrels Whiskey. T. D. 1836.)

An action for a pecuniary penalty is not a bar to a criminal prosecution when the law provides for both. (United States v. Trobe, 2 Int. Rev. Rec., 133; Fed. Cas., 16541.)

The acquittal of a defendant under indictment not a bar to an action on bond to recover the amount due the Government. (United States r. Jaedicke, 73 Fed., 100. See also United States Fidelity and Guaranty Co. v. United States, 150 Fed., 554.)

Where stock of goods upon which floor tax has not been paid is depleted in such manner as will result in jeopardizing collection of taxes due thereon same should be seized without awaiting result of distraint proceedings. (T. D. 2648.)

The United States is not estopped by verdict of acquittal from proceeding in a civil action for the tax. (United States v. Schneider, 35 Fed., 107.)

Acquittal bar to civil action for penalty. (United States r. Seattle Brewing & Malting Co., 135 Fed., 597.)

Oleomargarine.

Fed., 207.)

(United States v. One Bay Horse, 128

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. (United States v. Three Tons of Coal, 21 Int. Rev. Rec., 251.)

The expression "in fraud of the internal-revenue laws" means in violation of the internal-revenue laws. (A Quantity of Tobacco and Cigars, 5 Ben., 407, Fed. Cas. No. 11500.)

Sales to evade tax; forfeiture.

Moiety.

receiving empty

ages, etc.; penal-" ties.

Reports of seizure on Form 117 to be made promptly. (T. D. 147; 1357.)

Seizures not to be made on suspicion. (T. D. 1543.)

Notice to shippers. (T. D. 585.)

Property needed as evidence should be retained.

States v. Wilson, 163 Fed., 344.)

(United

The court has no power to return goods seized by a revenue officer against which no proceedings for forfeiture have been instituted. (United States v. Hee, 219 Fed., 1019;

T. D. 2191.)

An in rem suit is a civil proceeding. Preponderance of evidence only required. (Grain Distillery No. 8, etc., v. United States, 204 Fed., 429; T. D. 1837.)

SEC. 3454. Whenever any person who is liable to pay any 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 there for, unless the same shall have been bona fide transferred to an innocent holder, 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, stamped pack or receives any box, barrel, bag, vessel, package, wrapper, 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 internal-revenue laws has been complied with, whether such stamping, 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 anything else than the contents which were therein when said articdes had been so lawfully stamped, branded, or marked by an officer of the revenue, he shall be liable to a penalty of not less than fifty Manufacturing,, nor more than five hundred dolars. And every person who makes, manufactures, or produces any box, barrel, bag, vessel, package, wrapper, cover, or envelope, 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. And all articles sold, given, purchased, received, made,

etc., such pack-1 ages.

manufactured, produced, branded, stamped, or marked in violation of the provisions of this section, and all their contents, shall be forfeited to the United [States].

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., 191.)

Empty cigar boxes. (T. D. 873.)

The phrase "anything else" in section 3455 does not include substances that are not in themselves taxable. (United States v. A. Graf Distilling Co., 208 U. S., 198; T. D. 1304.) For decisions in lower courts see 129 Fed., 329, and 125 Fed., 52; T. D. 701.

(Corbin & Co. v.

Verbal error corrected.

forfeiture by dis

wholesale liquor

ufacturers of to

things required,

Proceedings for forfeiture-evidence. United States, 181 Fed., 296; 104 C. C. A., 278). SEC. 3456. If any distiller, rectifier, wholesale liquor, Penalty and dealer, or manufacturer of tobacco or cigars, shall know- tillers, rectiflers, ingly or willfully omit, neglect, or refuse to do or cause dealers and manto be done any of the things required by law in the carry-bacco or cigars, ing on or conducting of his business, or shall do anything for omitting by this Title prohibited, if there be no specific penalty or and for doing punishment imposed by any other section of this Title things forbidden. for the neglecting, omitting or refusing to do, or for the doing or causing to be done the thing required or prohibited, he shall pay a penalty of one thousand dollars; Act Feb. 27, and if the person so offending be a distiller, rectifier, or 1877 (19 Stat., wholesale liquor dealer, all distilled spirits or liquors 240.) Verbal error owned by him or in which he has any interest as owner, corrected. and if he be a manufacturer of tobacco or cigars, all tobacco or cigars found in his 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 v. One hundred and thirty-three Casks of Distilled Spirits (11 Int. Rev. Rec., 191). United States v. 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; Fed. Cas. No. 15952).

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

Intent. (Felton v. United States, 96 U. S., 699; 24 Int.
Rev. Rec., 252.)

Meaning of the words "knowingly and willfully." (A
Quantity of Distilled Spirits, etc., 3 Ben., 552; Fed. Cas. No.
11495; 10 Int. Rev. Rec., 206; 11 Id., 3.)

The guilty intent to be determined by the facts and circumstances. A person intends the natural and probable consequences of acts intentionally done. (Agnew v. United States, 165 U. S., 57.)

Package in

SEC. 3457. In every case where any goods or commodi- cluded in forfeitties are forfeited under any internal-revenue law, all ure of goods. casks, vessels, cases, or other packages whatsoever, containing, or which shall have contained such goods or commodities, respectively, shall be forfeited.

Goods seized

to marshal before

SEC. 3458. Any goods, wares, merchandise, articles, or may be delivered objects which may be seized, under the provisions of sec- process issues.

Cost of seizure.
Whisky, tobac-

tion thirty-four hundred and fifty-three, by any collector or deputy collector, may, at the option of the collector, be delivered to the marshal of the district, and remain in the care and custody and under the control of said marshal, until he shall obtain possession by process of law. And the cost of seizure made before process issues shall be taxco, etc., sold on able by the court. And where any whisky or tobacco, or distraint, forfei- other article of manufacture or produce, requiring brands, brands, and stamps, or marks of whatever kind to be placed thereon fixed by officer. shall be sold upon distraint, forfeiture, or other process provided by law, 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.

ture, etc., marks,

stamps to be af

Bonding perishable goods seized, etc.

Stamping tobacco, snuff, or cigars sold under distraint or forfeited. (Sec. 3369, p. 383.)

Destruction of forfeited tobacco, snuff, or cigars which will not sell for a price equal to the tax. (Sec. 3369, p. 383.)

Provision where spirits will not sell for price equal to tax. (Secs. 3334, p. 288, 3450, p. 592; Regulations No. 2, revised, p. 47.)

Property sold under distraint. (Sec. 3191, p. 121.)

Collectors should be careful to render to the clerk of the court their bill of costs as soon as the marshal takes possession of the property, or very soon thereafter, which expenses are payable from appropriation "Salaries, fees, and expenses of marshals, United States courts." (XIII Comp. Dec. 316.)

Payment of expenses of collectors in seizure cases: Expenses incurred by a collector of internal revenue in the care of property seized for violation of law and turned over to the marshal under the provisions of section 3458 are payable from the appropriation for "Miscellaneous expenses, Internal-Revenue Service." (15 Compt. Dec. 782; T. D. 1506.)

Payment of expenses of marshals: Expenses incurred by a marshal in the care of property turned over to him by a collector under the provisions of section 3458, when taxed by the court, are payable from the appropriation for "Salaries, fees, and expenses of marshals, United States courts," even though all proceedings be compromised under the provisions of sections 3229 and 3230, Revised Statutes. (T. D. 1507.)

The provision allowing the court to tax in favor of the collector the costs of seizure made before process issues may be properly construed to cover any necessary expenses of watching property seized by a collector for such time as shall necessarily elapse between the seizure by the collector and the seizure by the marshal under process; but it can not be extended to cover a charge for custody during an unreasonable delay. (Fifteen Empty Barrels, etc., 1 Ben., 125.)

SEC. 3459. When any property which is seized under the foregoing provisions of section thirty-four hundred and fifty-three is liable to perish or become greatly reduced in price or value by keeping, or when it can not be kept without great expense, the owner thereof, or the marshal of the district, may apply to the collector of the district to examine it; and if, in the opinion of the said collector, it