Page images


Collection tax.

seized property.

Administrative provisions of in

under, or whoever withdraws or attempts to withdraw or secure tax free any alcohol subject to tax, or whoever otherwise violates any of the provisions of this title or of regulations lawfully made thereunder shall be liable, for the first offense, to a penalty of not exceeding $1,000, or imprisonment not exceeding thirty days, or both, and for a second or cognate offense to a penalty of not less than $100 nor more than $10,000, and to imprisonment of not less than thirty days nor more than one year. It shall be lawful for the commissioner in all cases of second or cognate offense to refuse to issue for a period of one year a permit for the manufacture or use of alcohol upon the premises of any person responsible in any degree for the violation.

Sec. 16. Any tax payable upon alcohol under existing law may be collected either by assessment or by stamp as regulations shall provide; and if by stamp, regulations shall issue prescribing the kind of stamp to be used and the manner of affixing and canceling the same.

Sec. 17. When any property is seized for violation of Release of this title it may be released to the claimant or to any intervening party, in the discretion of the commissioner, on a bond given and approved.

Sec. 18. All administrative provisions of internalrevenue law, including those relating to assessment, col- ternal revenue lection, abatement, and refund of taxes and penalties, and the seizure and forfeiture of property, are made applicable to this title in so far as they are not inconsistent with the provisions thereof.

Sec. 19. All prior statutes relating to alcohol as defined in this title are hereby repealed in so far as they are inconsistent with the provisions of this title.

Sec. 20. That it shall be unlawful to import or introduce into the Canal Zone, or to manufacture, sell, give away, dispose of, transport, or have in one's possession or under one's control within the Canal Zone, any alcoholic, fermented, brewed, distilled, vinous, malt, or spirituous liquors, except for sacramental, scientific, pharmaceutical, industrial, or medicinal purposes, under regulations to be made by the President, and any such liquors within the Canal Žone in violation hereof shall be forfeited to the United States and seized: Provided, That this section shall not apply to liquor in transit through the Panama Canal or on the Panama Railroad.

That each and every violation of any of the provisions Fine and imof this section shall be punished by a fine of not more than $1,000 or imprisonment not exceeding six months for a first offense, and by a fine not less than $200 nor more than $2,000 and imprisonment not less than one month nor more than five years for a second or subsequent offense.

That all offenses heretofore committed within the Canal Zone may be prosecuted and all penalties therefor


Repeal of laws.

Canal Zone.




enforced in the same manner and to the same extent as
if this act had not been passed.
Sec. 21. Titles I and III and sections 1, 27, 37, and 38

of provisions. of title II of this Act shall take effect and be in force from and after the passage and approval of the Act. The other sections of title II shall take effect and be in force from and after the date when the eighteenth amendment of the Constitution of the United States goes into effect.

Speaker of the House of Representatires.

l'ice President of the United States and

President of the Senate.

Passage over


October 27, 1919. The President of the United States having returned to President's veto. the House of Representatives, in which it originated, the bill (H. R. 6810) entitled “ An Act to prohibit intoxicating beverages, and to regulate the manufacture, production, use, and sale of high-proof spirits for other than beverage purposes, and to insure an ample supply of alcohol and promote its use in scientific research and in the development of fuel, dye, and other lawful industries,” with his objections thereto, the House proceeded in pursuance of the Constitution to reconsider the same; and

Resolved. That the said bill pass, two-thirds of the House of Representatives agreeing to pass the same. Attest:




Legislative Day, October 22, 1919,

Calendar Day October 28, 1919. The Senate having proceeded to reconsider the bill (H. R. 6810) “ An Act to prohibit intoxicating beverages, and to regulate the manufacture, production, use, and sale of high-proof spirits for other than beverage purposes, and to insure an ample supply of alcohol and promote its use in scientific research and in the development of fuel, dye, and other lawful industries,” returned by the President of the United States to the House of Representatives, in which it originated, with his objections, and passed by the House on a reconsideration of the same, it was

RESOLVED, That the said bill pass, two-thirds of the
Senators present having voted in the affirmative.




Sec. 3370. Tobacco manufactured by one person for another


on shares; fraud in such cases;

penalty. 3371 (amended). Assessment of tax

on tobacco, snuff, and cigars

removed without stamps. 3372. Removing unlawfully, selling

without stamps, or payment of tax, or giving bond, making

false entries; forfeiture. 3373. Absence of stamp evidence of

nonpayment ; forfeiture. 3374. Removing, except in proper pack

ages or without stamp, selling

unlawfully, etc. ; penalty. 3375. Affixing false stamps or stamps

before used; penalty. 3376. Stamps on empty packages to be

destroyed; buying, selling, or

using the same; penalty. 3377 (amended). Imported tobacco and

snuff ; also scraps, cuttings,

and clippings. 3378. (Obsolete.) 3379. (Obsolete.) 3380. (Obsolete.) 3244 (amended). Subsection 11. Ped

dlers of tobacco, defined. 3381 (amendel). Peddlers of tobacco;

statement and bond. 3382. Peddlers of tobacco traveling

with wagon. 3383 (amended). Peddler obtain

and exhibit certificate, etc. 3334 (amended). Peildling tobacco un

lawfully; penalty. 3385 (amended). Exportation of manufactured tobacco,

etc.; penalty for relanding, etc, 24. Act of February 8, 1875. Trans

portation bond, etc.; export

bond, etc. 1. Act of August 4, 1886. Regula

tions authorized. 1. Act of October 3, 1913. Reim

ported tobacco. 3386 (amended). Drawback


69. Act of August 27, 1894. Manu-

facturer of tobacco defined. 27. Act of October 1, 1890, amended.

Restrictions upon farmers re

moveil. 3355 (a mended). Manufacturer's


Bond and certificate; penalties. 3356. Sigu to be put up by manufac

turer; penalty for omission. 3357 (amended). Record of manufac

turers to be kept by collector. 3358. Annual inventory.

Books and monthly abstracts,

Taxes on cigars, cigarettes, and size of

packages of tobacco; penalty. 3244 (amended). Subsection 6. Deal

ers in leaf tobacco defined.
26. Act of October 1, 1890. Registry.
3359. Dealers in leaf tobacco to render

statement of sales when de-
manded. Examination of

3360 (amended). Books of dealer in

leaf tobacco; penalty. 3361. (Repealed by section 69, act Au

gust 27, 1894.) 34. Act of August 5, 1909. Effective

date of certain sections. 3362 (amended). Tobacco and snuff,

how put up. 3363 (amended). Tobacco and snuff to

be sold only in prescribed pack

ages ; penalty. Exception. 3364 (amended). Caution label; pen

alty. 3365. (Obsolete.) 3366. Purchasing tobacco not branded

or stamped; penalty. 3367. Purchasing tobacco from manu

facturers who have not paid

tax. 3368 (amended). Tax on tobacco and

701. Act of February 24, 1919. Rate

of tax on tobacco and snuff
manufacturer in or imported

into United States,
702. (Same). Floor tax.
3369. Stanips, how prepared, fur-

nished, and sold.
Stamping forfeited tobacco or to-

bacco solil under distraint.
Destruction of unsalable tobacco

and cigars.

ported tobacco, snuff, and


Fraudulent claims for drawback. 1, 7. Act of April 30, 1912. Statistics

of leaf tobacco.



Ma nuiacturers of tobacco defined,

Retail leaf dealers when regarded as manufacturers,

SEC. 69. [Act of August 27, 1894 (28 Stat., 509).] Every person whose business it is to manufacture tobacco or snuff for himself, or who employs others to manufacture tobacco or snuff, whether such manufacture be by cutting, pressing, grinding, crushing, or rubbing of any raw or leaf-tobacco, or otherwise preparing raw or leaf tobacco, or manufactured or partially manufactured tobacco or snuff, or the putting up for use or consumption of scraps, waste, clippings, stems, or deposits of tobacco resulting from any process of handling tobacco, or by the working or preparation of leaf tobacco, tobacco stems, scraps, clippings, or waste, by sifting, twisting, screening, or any other process, shall be regarded as a manufacturer of tobacco.

Every person shall also be regarded as a manufacturer of tobacco whose business it is to sell leaf tobacco in quantities less than a hogshead, case, or bale; or who sells directly to consumers, or to persons other than duly registered dealers in leaf tobacco, or duly registered manufacturers of tobacco, snuff or cigars, or to persons who purchase in packages for export; and all tobacco so sold by such persons shall be regarded as manufactured tobacco, and such manufactured tobacco shall be put up and prepared by such manufacturer in such packages only as the Commissioner of Internal Revenue, with the ap

proval of the Secretary of the Treasury, shall prescribe: Farmers and Provided, That farmers and growers of tobacco who sell

leaf tobacco of their own growth and raising shall not be regarded as manufacturers of tobacco; and so much of section three thousand two hundred and forty-four of the Revised Statutes of the United States, and acts amendatory thereof, as are in conflict with this Act, are hereby repealed :





11 pon removed.

That section thirty-three hundred and sixty-one of the Revised Statutes is hereby repealed.

Special taxes on manufacturers of tobacco imposed by

section 701 (a), act of February 24, 1919, see p. 381. Restrictions Sec. 27. Act of October 1, 1890 (26 Stat., 618), as

amended by sec. 69, act of August 27, 1894 (28 Stat., 509).] That all provisions of the statutes imposing restrictions of any kind whatsoever upon farmers and growers of tobacco in regard to the sale of their leaf tobacco, and the keeping of books, and the registration and report of their sales of leaf tobacco, or imposing any

tax on account of such sales are hereby repealed. Manufacturer's Sec. 3355. [Amended by sec. 14, act of March 1, 1879 ftatement, bond, and certificates.' (20 Stat., 327).] Every person, before commencing, or,

if he has alredy commenced, before continuing, the manufacture of tobacco or snuff, shall furnish, without previous

demand therefor, to the collector of the district where St a tement the manufacture is to be carried on, a statement in dupli.

cate, subscribed under oath, setting forth the place, and

Form 36.

if in a city, the street and number of the street, where the manufacture is to be carried on; the number of cutting-machines, presses, snuff-mills, hand-mills, or other machines; the name, kind, and quality of the article manufactured or proposed to be manufactured; and when the same is manufactured by him as agent for any other person, or to be sold and delivered to any other person under a special contract, the name and residence and business or occupation of the person for whom the said article is to be manufactured, or to whom it is to be delivered; and he shall give a bond, to be approved by Bond Form 40. the collector of the district, in the sum of not less than two thousand nor more than twenty thousand dollars, to be fixed by the collector of the district, according to the quantum of business proposed to be done by the manufacturer, with right of appeal by the manufacturer to the Commissioner of Internal Revenue in respect to the amount of said bond, conditioned that he shall not engage in any attempt, by himself or by collusion with others, to defraud the government of any tax on his manufactures; that he shall render truly and completely all the returns, statements, and inventories prescribed by law or regulations; that whenever he adds to the number of cuttingmachines, presses, snuff-mills, hand-mills, or other mills or machines as aforesaid, he shall immediately give notice thereof to the collector of the district; that he shall stamp, in accordance with law, all tobacco and snuff manufactured by him before he removes any part thereof from the place of manufacture; that he shall not knowingly sell, purchase, expose, or receive for sale, any manufactured tobacco or snuff which has not been stamped as required by law; and that he shall comply with all the requirements of law relating to the manufacture of tobacco or snuff. Additional sureties may be required by the collector from time to time.

And every manufacturer shall obtain a certificate from the collector of the district, who is hereby directed to issue the same, setting forth the kind and number of machines, presses, snuff mills, hand mills, or other mills and machines as aforesaid; which certificate shall be posted in a conspicuous place within the manufactory. And every tobacco-manufacturer who neglects or re

Penalties fuses to obtain such certificate, or to keep the same posted as hereinbefore provided, shall be fined not less than one hundred dollars nor more than five hundred dollars. And every person who manufactures tobacco or snuff of any description without first giving bond, as herein required, shall be fined not less than one thousand dollars nor more than five thousand dollars, and imprisoned for not less than one nor more than five

years. The liability of the sureties on the bond of a manufacturer of tobacco, given in pursuance of this section, does not cease upon the expiration of his "license" as such manufacturer.

Certificato Form 41.

« PreviousContinue »