Rectifiers: punishment for fraud committed or attempted by, and for aiding in same. Rectifiers and the quantity dumped for rectification, the quantity rectified, the quantity removed after rectification during the preceding month, and giving such other information as may be required by the Commissioner of Internal Revenue, such return to be made in duplicate and sworn to by the rectifier; And the collector shall forward one of such returns to the Commissioner of Internal Revenue. Every person who engages in, or carries on, the business of a rectifier with intent to defraud the United States of the tax on the spirits rectified by him, or any part thereof, or with intent to aid, abet, or assist any person or persons in defrauding the United States of the tax on any distilled spirits, or who shall purchase or receive or rectify any distilled spirits which have been removed from a distillery to a place other than the distillery-warehouse provided by law, knowing or having reasonable grounds to believe that the tax on said spirits, required by law, has not been paid, shall, for every such offense, be fined not less than one thousand dollars nor more than five thousand dollars, and imprisoned not less than six months nor more than two years." [R. S., § 3318.] That section thirty-three hundred and eighteen be wholesale liquor- amended by adding thereto the following words: dealers to return monthly to collec their books. "That every person required to keep the books prescribed by this tors transcripts of section shall, on or before the tenth day of each month, make a full and complete transcript of all entries made in such book during the month preceding, and, after verifying the same by oath, shall forward the same to the collector of the district in which he resides. R. S., § 3318. -penalty on, for neglect. Distillery apparatus when seized may be destroyed in certain cases. R. S., § 3332. -witnesses of de Any failure by reason of refusal or neglect to make said transcripts shall subject the person so offending to a fine of one hundred dollars for each neglect or refusal." [R. S., § 3332.] That section thirty-three hundred and thirty-two be amended by adding thereto as follows: "And in case of seizure of a still, doubler, worm, worm-tub, mash-tub, fermenting tub, or other distilling apparatus, having a less producing capacity than one hundred and fifty gallons per day, for any offense involving forfeiture of the same, where said apparatus shall be of less than five hundred dollar's value, and where it shall be impracticable to remove the same to a place of safe storage from the place where seized, the seizing officer is authorized to destroy the same only so far as to prevent the use thereof, or any part thereof, for the purpose of distilling: Provided, That such destruction shall be in the presence of at least struction; report; one credible witness, and that such witness shall unite with the said estimate of value, officer in a duly sworn report of said seizure and destruction, to be made to the Commissioner of Internal Revenue, in which report they shall set forth the grounds of the claim of forfeiture, the reasons for such seizure and destruction, their estimate of the fair cash value of the apparatus destroyed, and also of the materials remaining after such destruction, and a statement that, from facts within their own knowledge, they have no doubt whatever that said distilling apparatus was set up for use and not registered, or had been used in the unlawful distillation of spirits, and that it was impracticable to remove the same to a place of safe storage. &c. cation within one year. -owner of, may be Within one year after such destruction the owner of the apparatus so reimbursed in cer- destroyed may make application to the Secretary of the Treasury, through tain cases on appli- the Commissioner of Internal Revenue, for reimbursement of the value of the same; and unless it shall be made to appear to the satisfaction of the Secretary and the Commissioner that said apparatus had been used in the unlawful distillation of spirits, the Secretary shall make an allowance to said owner, not exceeding the value of said apparatus, less the value of said materials as estimated in said report; and if the claimant shall thereupon satisfy said Secretary and Commissioner that said unlawful use of the apparatus had been without his consent or knowledge, he shall still be entitled to such compensation, but not otherwise. And in case of a wrongful seizure and destruction of property under Officer liable on the foregoing provisions, the owner thereof shall have right of action his bond for wrongon the official bond of the officer who occasioned the destruction for all damages caused thereby." [R. S., § 3334.] That section thirty-three hundred and thirty-four be amended by adding thereto as follows: tillers' apparatus. ful seizures of dis When spirits are sold for taxes, and are of so low proof as to be of less "Provided: That in all cases wherein it shall appear that any distilled spirits offered for sale on distraint for taxes, where the taxes on value than tax, the such spirits have not been paid, or offered for sale for the benefit of the same may be reUnited States as forfeited spirits under order of court or under proceed- stamped according ing pursuant to section thirty-four hundred and sixty of the Revised to proof-gallons. R. S., § 3334. Statutes, will not, by reason of such spirits being below proof, b[r]eing a price equal to the tax due and payable thereon, but will bring a price equal to, or greater than, the tax on said spirits, computed only upon the proof-gallons contained in the packages, without regard to the greater number of wine-gallons contained therein, then, and in such case, upon sale being so made, tax-paid stamps to the amount required to stamp such spirits as if the tax thereon were only on the proof-gallons thereof, may, under such rules and regulations as the Commissioner of Internal Revenue shall prescribe, be used by the collector making such sale, or furnished by a collector to a United States marshal, or to any other government officer making such sale for the benefit of the United States, without making payment for said stamps so used or delivered. Any collector using or furnishing stamps in manner aforesaid, on pre- —allowance in colsenting vouchers satisfactory to the Commissioner of Internal Revenue, lectors' accounts. shall be allowed credit for the same in settling his stamp account with the department. In such cases, the officer selling the distilled spirits shall affix, or cause -duty of officer to be affixed, to the same the tax paid stamps so provided, and shall making sale. write across the face of such stamps the true number of proof and wine gallons contained in the package, the amount of tax actually paid thereon, and also the words' Affixed under provisions of act of (inserting the date of the approval of this act). -1879" That section thirty three hundred and forty-six be amended by striking out all after the said number, and substituting therefor the following: using, &c., false or &c. [R. S., § 3346.] "Every person who makes, sells, or uses any false or Punishment for counterfeit stamp or permit, or die for printing or making stamps or making, selling, permits, which is in imitation of or purports to be a lawful stamp, permit, counterfeit stamps or die of the kind before mentioned in this chapter, or who procures the or dies, removing same to be done, and every person who shall remove, or cause to be stamps, buying, removed, from any cask or package of fermented liquors, any stamp selling, using, &c., denoting the tax thereon, with intent to re-use such stamp, or who, with removed stamps, intent to defraud the revenue, knowingly uses, or permits to be used,Substitute for any stamp removed from another cask or package, or receives, buys, R. S., § 3346. sells, gives away, or has in his possession, any stamp so removed, or makes any fraudulent use of any stamp for fermented liquors, shall be fined not less than one hundred dollars nor more than one thousand dollars, and imprisoned not less than six months nor more than three years." SEC. 6. That whenever, under the provisions of section thirty-three Assessments for hundred and nine of the Revised Statutes, an assessment shall have deficient producbeen made against a distiller for a deficiency in not producing eighty on account of grain, tion of distillery, or per centum of the producing capacity of his distillery as established by &c., found in exlaw, or for the tax upon the spirits that should have been produced cess of capacity of from the grain, or fruit, or molasses found to have been used in excess distillery, may be remitted in certain of the capacity of his distillery for any month, as estimated according to law, such excessive use of grain, or fruit, or molasses having arisen from a failure on the part of the distiller to maintain the capacity required by law to enable him to use such grain, or fruit, or molasses without incurring liability to such assessment, and it shall be made to appear 16 Ct. Cls., to the satisfaction of the Commissioner of Internal Revenue that said cases. R. S., § 3309 108, § 8. See Barnett's case, Remission of tax not to be made ou assessments made drior to January 1, 1874. Distillers of fruit exempt from such assessments, except, &c. Tax on spirits accidentally destroyed by fire not to be collected, deficiency, or that said failure, whereby such excessive use of grain, molasses, or fruit arose, was not occasioned by any want of diligence or by any fraudulent purpose, on the part of the distiller, but from misunderstanding as to the requirements of the law and regulations in that respect or by reason of unavoidable accidents, then, and in such case, the Commissioner of Internal Revenue, subject to regulations prescribed by the Secretary of the Treasury is authorized, on appeal made to him, to remit or refund such tax, or such part thereof as shall appear to him to be equitable and just in the premises: Provided, That no tax shall be remitted or refunded under the provisions of this section upon any assessment made prior to January first, eighteen hundred and seventy-four: Provided further, That no assessments shall be charged against any distiller of fruit for any failure to maintain the required capacity, unless the Commissioner shall, within six months after his receipt of each monthly report notify such distiller of such failure so to maintain the required capacity. [R. S., § 3221.] That section thirty-two hundred and twenty-one be amended by adding the following: "And when any distilled spirits are hereafter destroyed by accidental and if collected fire or other casualty, without any fraud, collusion, or negligence of the may be refunded owner thereof, after the time when the same should have been drawn in certain cases. R. S., § 3221. Rectifier's bond to be given before commencing busi ness. R. S., § 3259. Repealed; see 1880, May 28, ch. 108, § 9. -penal sum of. -- condition. -new, may be required. -penalty for carrying on business without, &c. off by the gauger and placed in the distillery-warehouse provided by law, no tax shall be collected on such spirits so destroyed, or, if collected, it shall be refunded upon the production of satisfactory proof that the spirits were destroyed as herein specified." SEC. 7. (Rep.) [Every rectifier shall, on filing with the collector his notice of intention to commence or continue business, after the passage of this act, and on the first day of May of each succeeding year, make and execute a bond in form prescribed by the Commissioner of Internal Revenue, with at least two sureties; said bond to be approved by the collector of the district. The penal sum of said bond shall not be less, in the case of a rectifier who rectifies by the process of redistilling or of leaching, or both, than double the amount of tax imposed by law on the spirits that can be rectified by such rectifier during a period of ten days; and the penal sum of the bond required of any rectifier by any other process than those herein before named shall be fixed under such regulations as may be prescribed by the Commissioner of Internal Revenue; But in no case shall the penal sum be less than five hundred dollars nor more than fifty thousand dollars. The condition of said bond shall be that the principal shall faithfully comply with all the provisions of law in relation to the duties and business of rectifiers, and shall pay all taxes, penalties incurred, or fines imposed on him for violation of any of the said provisions. A new bond may be required in case of the death, insolvency, or removal of either of the sureties, and in any other contingency affecting its validity or impairing its efficiency, at the discretion of the collector or Commissioner of Internal Revenue. Any rectifier who, after the passage of this act, shall commence business without giving the bond required by this section, or who shall continue to carry on business, after demand made for such bond, without giving the same, or who shall fail to renew such bond when lawfully required, shall, on conviction, be fined not more than five thousand dollars; -punishment for And any rectifier who shall give any false, forged, or fraudulent bond giving false or shall, on conviction, be subject to the penalties provided for in section fraudulent. fifty-four hundred and eighteen of the Revised Statutes.] R. S., § 5418. SEC. 8. When any rectifier intends to rectify or compound any disnotice of intent to tilled spirits, he shall give notice in duplicate to the collector of the disrectify. trict, in such form, and giving such particulars as the Commissioner of Internal Revenue may prescribe; one of such notices to be forwarded by the collector to the Commissioner of Internal Revenue. R. S., § 3259. Marshals may arrest and take be SEC. 9. Where any marshal or deputy marshal of the United States within the district for which he shall be appointed shall find any person foro magistrates or persons in the act of operating an illicit distillery, it shall be lawful any persons operatfor such marshal or deputy marshal to arrest such person or persons, ing illicit distillerand take him or them forthwith before some judicial officer named in ies. section one thousand and fourteen of the Revised Statutes, who may reside in the county of arrest or if none, in that nearest to the place of arrest, to be dealt with according to the provisions of sections ten hun dred and fourteen, ten hundred and fifteen, ten hundred and sixteen of the said Revised Statutes. R. S., § 10141016. Condition of dis SEC. 10. That section one of an act entitled "An act to facilitate the exportation of distilled spirits, and amendatory of the acts in relation tiller's transportathereto", approved June ninth, eighteen hundred and seventy-four, be tion bond for spiramended by inserting, after the word "therein" in the twelfth line, the words "and for the due performance on the part of the exporter or R. S., § 3329, owner at the port of export of all the requirements in regard to notice 3330. of export, entry, and the giving of bond hereinafter specified"; 1877, March 3, ch. 114, § 5. And at the end of said section add, "and whenever a distiller of spirits in bond shall desire to change the packages in which the same is contained, in order to export them, the Commissioner of Internal Revenue shall be authorized, under regulations to be prescribed by him, and upon the execution of proper bonds with sufficient sureties, to permit the withdrawal of so much spirits from bond and in new packages as the distiller shall desire to export as aforesaid." [R. S., § 3340.] That section thirty-three hundred and forty of the Revised Statutes be amended by striking out the words "as aforesaid" in the sixth line. [R. S., § 3244.] That section thirty-two hundred and forty-four of Revised Statutes, and second division, be amended by adding thereto the following words: "Upon all stills manufactured for export, and actually exported, there shall be allowed a drawback, where the tax thereon has been paid, under such rules and regulations as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe." IMPORTED-LIQUOR STAMPS, &c. 1874, June 9, ch. 259, § 1. 1879, Dec. 20, ch. 1. Packages in bond for export may be changed. Penalty on brewers for failure to do acts required by law. R. S., § 3340. on stills exported. R. S., § 2926. SEC. 11. That all distilled spirits, wines, and malt liquors, imported Imported liquors in pipes, hogsheads, tierces, barrels, casks, or other similar packages, to be placed in public stores, inshall be first placed in public store or bonded warehouse, and shall not spected, and be removed therefrom until the same shall have been inspected, marked, stamped. and branded by a United States customs gauger, and a stamp affixed to each package, indicating the date and particulars of such inspection; and the Secretary of the Treasury is hereby authorized to prescribe the form of, and provide, the requisite stamps, and to make all regulations which he may deem necessary and proper for carrying the foregoing requirements into effect. Any pipe, hogshead, tierce, barrel, cask, or other package withdrawn -forfeited if found from public store or bonded warehouse after the thirtieth day of June, without stamp. eighteen hundred and seventy-nine, purporting to contain imported liquor, found without having thereon the stamp hereby required, shall be, with its contents, forfeited to the United States; of wholesale deal And whenever any cask or package of imported distilled spirits of Casks of, when not less than five wine-gallons is filled for shipment, sale, or delivery on filled on premises the premises of any wholesale liquor-dealer, the same shall be stamped ers, to have special with a special stamp for imported spirits, under such rules and regula- stamp affixed. tions as the Commissioner of Internal Revenue has prescribed, or may hereafter prescribe, in the case of domestic distilled spirits. SEC. 12. That every person who empties or draws off, or causes to be emptied or drawn off, the contents of any package of imported liquors Stamps, &c., on imported packages to be defaced when liquor is drawn off, stamped as above required, shall, at the time of such emptying, efface, and casks, &c., not obliterate, and destroy the stamp thereon, and also all other marks or to be filled with domestic liquors. brands which shall have been placed thereon in accordance with the law Words stricken or regulations concerning imported liquors; (Rep.) [and no cask or out; see 1880, May other package, such as is hereinbefore mentioned, in which distilled 28, ch. 108, § 12. spirits, wines, or malt liquors have been imported, shall be used to contain domestic distilled spirits, under penalty of the forfeiture of such re-used cask or package and the contents thereof.] Penalty for not effacing stamps on emptying packages. R. S., § 3324. Every cask or other package from which the stamp for imported liquors required by this act to be placed thereon shall not be effaced, obliterated, or destroyed, on emptying such package, shall be forfeited, and the same may be seized by any officer of internal revenue wherever found; and all the provisions and penalties of section thirty-three hundred and twenty-four of the Revised Statutes of the United States, relating to empty casks or packages from which the marks, brands, or stamps have not been effaced or obliterated, and relating to the removal of stamps from packages, and to having in possession any stamps so removed, shall apply to the stamps for imported spirits herein provided for, and to the casks or other packages on which such stamps shall have been used. - for dealing in or SEC. 13. That if any person shall purchase or sell, with the importedusing empty im- liquor stamp herein required remaining thereon, or any of the marks or ported pack ckages with stamps rebrands which shall have been placed thereon in accordance with the maining thereon. laws or regulations concerning imported liquors remaining thereon, any cask or other package, after the same has been once used to contain imported liquors and has been emptied; or if any person shall use or have in possession such cask or package, with any imitation of such marks or brands, for the purpose of placing domestic distilled spirits therein for -for having, &c., sale; (Rep.) [or shall, for such purpose, manufacture, use, or have in imitation pack possession any cask or package made in imitation of, or intended to be Words stricken in the similitude of, such imported casks or packages, with any imitaout; see 1880, May tion of such marks or brands thereon,] every such cask or package, with 28, ch. 108, § 13. its contents, if any, shall be forfeited to the United States. ages. - pecuniary penalty. Tax on tobacco and snuff to be sixteen cents a pound. R. S., § 3368. 18:5, March ch. 127, § 2. dies for stamps. And every such person who shall violate any of the provisions of this section shall be liable to a penalty of two hundred dollars for every such cask or package so purchased, sold, (Rep.) [manufactured,] used, or had in possession. TOBACCO. SEC. 14. That the Revised Statutes be amended as follows, namely: That on and after the first day of May eighteen hundred and seventynine, there shall be levied and collected upon all snuff manufactured 3, of tobacco, or any substitute for tobacco, ground, dry, damp, pickled, scented, or otherwise, of all descriptions, when prepared for use; And upon all chewing and smoking tobacco, fine-cut, cavendish, plug or twist, cut or granulated, of every description; On tobacco twisted by hand or reduced into a condition to be consumed, or in any manner other than the ordinary mode of drying and curing, prepared for sale or consumption, even if prepared without the use of any machine or instrument and without being pressed or sweetened, and on all fine cut shorts and refuse scraps, clippings, cuttings, and sweepings of tobacco, a tax of sixteen cents per pound. - appropriation And the sum of fifteen thousand dollars, or so much thereof as may for alteration of be necessary, be, and the same hereby is, appropriated, out of any money in the Treasury not otherwise appropriated, for the alteration of dies and stamps, and such other expenses as are incident in preparing for the collection of the taxes on tobacco and snuff at the reduced rates provided in this act. Special tax of $25 to be paid by deal- [R. S., § 3244.] That the sixth subdivision of section thirty-two hundred and forty-four be amended to read as follows: Sixth. Dealers in leaf-tobacco, except retail dealers in leaf-tobacco, as hereinafter defined, shall pay twenty-five dollars. 6. |