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the bond, such payment was accepted as sufficient to warrant the cancellation of the bond.

It is, however, so clearly the intention of the act of July last that all spirits removed under transportation bond shall be deposited in bonded warehouse, and the statute so explicitly declares the forfeiture of all spirits, which shall be found elsewhere than in bonded warehouse, not having been removed therefrom in pursuance of law, that it is believed to be no longer necessary to tolerate this practice. At the same time, it would be regarded as oppressive, if seizure should be made of spirits which were placed in the market without going into warehouse where the shipper had been in the habit of making this disposition of spirits, and of canceling his bond by the payment of the tax.

Collectors will, therefore, notify all persons who may hereafter execute bonds for transportation of spirits to bonded warehouse, that such spirits will be seized if found elsewhere than in transit to the warehouse for which a permit is issued, and collectors will seize all spirits which may be found in their respective districts branded for transportation, and which are evidently not in regular course of transit to the proper warehouse, unless it shall appear to their satisfaction that the transportation of such spirits was commenced prior to the 20th instant.

The sooner all distillers, and persons engaged in the purchase and sale of distilled spirits, are made aware that only those spirits which have been regularly withdrawn from warehouse upon payment of the tax can be regarded as legitimate objects of traffic, the better will it be for the interests of the Government and of all honest distillers. Collectors will also notify all persons who may hereafter executé transportation bonds that in no event will the bonds be canceled except upon proof of the receipt of the spirits into the proper warehouse, or proof of some special circumstances which have rendered a literal compliance with the condition of the bond impossible.

E. A. ROLLINS, Commissioner.

Regulations for Distillers and Refiners of Coal or Mineral Oils. TREASURY DEPARTMENT, Office of Internal Revenue, } Washington, October 17, 1866.

By the act of June 30, 1864, as amended by the act of July 13, 1866, a tax is imposed upon illuminating, lubricating, or other mineral oils; and it is further provided "that distillers of illuminating, lubricating, or other mineral oils, naphtha, benzine, benzole, or gasoline, shall be subject to all the provisions of law applicable to distillers of spirits, with regard to special taxes, bonds, returns, assessments, removing to and withdrawing from warehouses, liens, penalties, forfeitures, drawbacks, and all other provisions designed for the purpose of ascertaining the quantity distilled and securing the payment of taxes, so far as the same may, in the judgment of the Commissioner of Internal Revenue, and under regulations prescribed by him, be deemed necessary for that purpose."

Under this authority, the Commissioner of Internal Revenue hereby prescribes, that every person who refines, distills, or re-distills petroleum or other bituminous substances, or refines crude oil, produced by a single distillation of coal, shale, asphaltum, peat, or other bituminous substances, shall give a bond. (Form 28.) This bond must be taken by the collector, who will bear in mind that bonds already given under the provisions of former laws will not suffice.

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Each distiller or refiner must keep a book, in form and manner set forth in Form 25, which form is hereby prescribed, showing the quantity and description of the oil produced, the quantity placed in bond, and the quantity not placed in bond, and, consequently subject to tax, and the quantity and description of oil sold by him, with the name and place of business or residence of the person to whom sold. If desired by the distiller, the account of sales may be kept in a separate book.

A return will be made on Form 26, on or before the tenth day of each month, instead of tri-monthly as heretofore, showing the product of the preceding month, the quantity bonded, and the quantity subject to tax; and the tax is to be paid, like other monthly taxes, on or before the last day of the month in which the return is made.

By the act of July 13, 1866, section 10, paraffine oil, and lubricating oil made from petroleum, coal, or shale, not exceeding in specific gravity 36 degrees, is exempt from tax, but such oil is made subject to the same inspection as illuminating oil; it therefore follows, that the entire product of the distillery or refinery must be inspected and gauged by an inspector, appointed under the provisions of section 58, act June 30, 1864.

The establishment of bonded warehouses, for the storage of mineral oil, and the withdrawal of the same therefrom, will be governed by the regulations of May 1, 1865, issued by the Secretary of the Treasury, until otherwise directed.

Distillers and refiners of mineral oil are, by these regulations, released from the restrictions placed upon distillers of spirits by the present law, so far as relates to establishing bonded warehouses for the storage of their products, employing inspectors for each distillery at a per diem compensation, providing receiving cisterns, &c. They can also remove the oil produced by them directly from the distillery or refinery to a general bonded warehouse, Class B, without first placing it in a bonded warehouse, Class A, as in the case of removal of distilled spirits.

E. A. ROLLINS, Commissioner.



The following circular, addressed to assessors and collectors, concerning distilleries has just been issued:

Treasury DepARTMENT, Office of Internal Revenue, }

Washington, March 4, 1867.

Section 17 of the Act of Congress approved March 2, 1867, provides that "hereafter all distilled spirits, before being removed from the distillery, shall be inspected and gauged by a general inspector of Spirits; who shall mark the barrels or packages in the manner required by law. And so much of the act approved July 13, 1866, as requires the appointment of an inspector for each distillery established according to law, is hereby repealed: Provided, That such other duties as have heretofore been imposed upon inspectors of distilleries may be performed by such other duly apointed officers as may be designated by the Commissioner of Internal Revenue. Section 18 of the same act provides that whenever in the judgment of the collector there shall be a general bonded warehouse so located as to be conveniently accessible to a distillery, and in the same collection district, the said collector shall direct all spirits which may be stored in the bonded warehouse attached to such distillery to be transferred directly to general bonded warehouse, and all spirits thereafter produced in such distillery shall be removed to a general bonded warehouse within the time and in the manner before required for removal to the bonded warehouse attached to the distillery.” Under these provisions, collectors will forthwith require the distillery inspectors to deliver up their "inspector's records" brands, and the keys of the cistern-rooms and distillery bonded warehouses. Wherever a general bonded warehouse may be conveniently accessible to a distillery, the collector will at once direct the transfer of all spirits stored in the distillery bonded warehouse under the supervision of an officer to be detailed by him. Transportation bonds will not be required in such cases, but the usual warehouse entries must be made. In this case, the keys of the cistern-room will be delivered to an assistant assessor, to be designated by the assessor of the district where a general bonded warehouse is not conveniently accessible. The use of distilleries as bonded warehouses will be continued, and the collector will at once appoint a proper person as a storekeeper to have charge of the same, who will keep the keys of the cistern, as well as of the warehouse. The duties and compensation of storekeepers are prescribed in series 2 to 9. As the law now requires all spirits before being removed from the distillery to the bonded warehouse to be inspected and marked by a general inspector, collectors must immediately take measures, when necessary, to

have general inspectors appointed within convenient distances to the distilleries. Assessors will immediately designate a sufficient number of assistant assessors for the efficient supervision of all the distilleries in their respective districts. And it shall be the duty of such assistant assessors to visit the distilleries assigned to them daily, if possible, and especially to ascertain the capacity of each distillery, and take such measures as will enable them to determine the daily production of each. Whatever officer has charge of the keys of the cistern room must be present whenever spirits are drawn off from the cistern; and after being inspected by the General Inspector, must superintend their removal to the bonded warehouse. The general inspector must make a return of the spirits so inspected both to the collector and assessor on the day of inspection.

E. A. ROLLINS, Commissioner.

Brewers and their Returns.

For full statement of the requirements and returns of brewers, their notices of intention to carry on business, bonds, books of record, affixing and cancellation of stamps, how fermented liquor may be removed without stamps, the bottling of the same, marking of the casks, penalties, and the stamp account of the collector, &c., see Department series 2, No. 6.


For regulations concerning the weighing and marking of cotton, the assessment and collection of the tax thereon, and the removal of cotton under bond, see series 2, No. 5, and "Additional Regulations" of Sept. 25, 1866.



Concerning Proceedings for Assessment.

The Annual List.

The annual list will include the annual taxes upon income, articles in Schedule A, and licenses dating from May 1. These items, and no others, will be entered on the annual list.

*It will not be forgotten that these instructions, &c., were of course issued from the Department under former laws, and before the late amendments. The greater portion of them are fully applicable to the new law, and all will be of great importance for reference, comparison, &c., to revenue officers, who will make the required modifications in the light of such new instructions as may be hereafter issued by the Commissioner. The same remark applies to the rulings, decisions, and correspondence, contained herein.-ED. (See Preface.)

Each assistant assessor will complete his annual list and forward it to the assessor on or before the thirtieth day of May; and the complete list should be delivered by the assessor to the collector on or before the thirtieth day of June in each year.

In preparing the list the assessor must observe the requirements of sections 18 and 19. The notice for receiving and determining appeals must be advertised or posted in each county as directed in section 19. But if the assessor is unable, from any cause, to attend the appeals at the time named in the notices, one of the assistant assessors or a clerk of the assessor should attend, and if any appeals are filed he may adjourn the hearing to a subsequent day.

Monthly List.

The monthly list should be completed by the assistant assessor and forwarded to the assessor on or before the fifteenth day of each month; and the assessor should deliver the same to the collector on or before the twentieth day of each month. In making up this list, assessors will pay particular attention to those taxes which have already been sent forward on special lists, as all such taxes must be included in the collector's receipt for the monthly list.

Assessors should, every month, post into a blank book the returns of manufacturers, distillers, brewers, tobacconists, &c., so as to show the business of each for a series of months, and to enable a comparison to be readily made of the amounts produced, with the amounts sold. It is of great importance that this account be kept accurately, and the comparison made frequently, so as to keep a proper check on those making retu

Special Lists.

Special lists will be made up, from time to time, by the assistant assessor and transmitted to the assessor, as the occasion may arise; but in all such cases the items will be included and receipted for in the monthly list next completed. Annual taxes, the returns for which are not received in time for the annual list, and monthly or quarterly taxes, the returns for which are not received in time to be entered in the current monthly list, will be forwarded to the assessor, and by him to the collector, on a special list, in order that there may be no delay in the collection. Receipts for transmission to the Commissioner will not be taken for special lists, but the rule which governs receipts on Form 11 may be adopted. Assessors will retain copies of all special lists transmitted, and will exercise the utmost care that all assessments on such lists shall be entered on the proper monthly list.

Whenever a change of collectors occurs, the assessor should take receipts on Form 23 from the outgoing collector for all special lists and duplicate returns transmitted to him, and for unassessed penalties collected by him, since his last receipt. Such assessments should not be included in the monthly list presented to the new collector.

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