other or with other wines for the sole purpose of perfecting such wines according to commercial standards: Provided, That nothing herein contained shall be construed as prohibiting the use of tax-paid grain or other ethyl alcohol in the fortification of sweet wines as defined in section 610 of this Act and section 43 of the act entitled 'An Act to reduce the revenue and equalize duties on imports, and for other purposes,' approved October 1, 1890, as amended by this Act."

Section 628. Exemption from tax of the amount paid for containers of taxable beverages.

This section imposes a tax on certain beverages which is necessarily imposed on the selling price, including the price of the container. In cases in which the containers are returned to the manufacturer by the purchaser and refund made by the manufacturer to the purchaser the department allows a refund of the tax paid on this portion of the selling price.

It has been suggested that the law be amended to specifically exempt from tax the selling price of the container provided the selling price of the container is billed to the purchaser separately from the price of the beverage.

It has been suggested that this change could be accomplished by an amendment in substantially the following form:

Add a new paragraph at the end of section 628 as follows:

(c) In the case of any beverage specified in this section, if the beverage is sold under an agreement by which the manufacturer is to refund the purchaser a specified amount upon the return of the ccontainer, the tax shall be computed upon the selling price of the beverage if the selling price of the beverage and container are billed to the purchaser separately. In such cases the selling price of the container shall not be billed at an amount in excess of the refund to be allowed on the return of the container.

Section 630. Taxability and nontaxability of articles of food or drink defined. The terms "other similar place of business," "in or in proximity to the place of business," and "amount paid" defined. Proprietors of soda fountains, ice cream parlors, and other similar places of business required to furnish purchaser a ticket indicating amount paid and tax separately.

This section imposes a tax on the amount paid to any person conducting a soda fountain, ice-cream parlor, or other similar place of business for soft drinks, ice cream, and similar articles.

In the administration of section 630 it has been necessary for the Treasury Department to define taxable and nontaxable articles under this section, and the terms "other similar place of business," "in or in proximity to the place of business," and "amount paid.”

It has been suggested that in the interest of certainty these definitions as indicated in the suggested amendment should be incorporated in the Revenue Act of 1918.

It has been suggested that this tax would be paid more willingly if means were provided for the certain collection of the tax by the Government and that to this end proprietors of soda fountains and other similar places of business should be required to furnish the purchaser a ticket indicating the amount paid and the tax separately, and that these tickets be serially numbered.

It has been suggested that these changes could be accomplished by amendments in substantially the following form:

Amend section 630 by adding the following six new paragraphs at the end thereof:

The term "similar articles of food or drink"

(a) Includes such articles as orangeade, lemonade, pineapple juice, coca-cola, root beer, moxie, phosphates, fruit and flavoring sirups compounded or mixed with plain or carbonated water, milk shakes in any form, cream and egg shakes, ice cream sandwiches, and ice cream cones; but

(b) Does not include such articles as beef tea, coffee, tea, buttermilk, milk, hot chocolate or cocoa, clam broth, clam bisque, tomato bouillon, bromo seltzer, citrate of magnesia, rochelle salts, seidlitz powders, bicarbonate of soda, castor oil, epsom salts, and essence of pepsin;

The term "other similar place of business' shall be deemed to refer primarily to the character of the business transacted rather than to any physical resemblance to the place where the business is done;

The container used to convey any article taxable under this section shall be the primary test in determining whether or not the article is to be consumed "in or in proximity to the place of business";

Sales of articles taxable under this section shall not be subject to tax when made in the regular course of business at a hotel, restaurant, cafeteria, lunch room, or club house, unless such articles are sold separate and apart from meals. Ice cream sold with any substantial article of food at such places shall not be subject to tax. sales of such articles at a soda fountain or in an ice cream parlor shall be subject to tax even though sold as a part of a meal.

The term “amount paid” as used in this section means the entire amount paid by the purchaser and not the amount paid for each separate article of food or drink.

Every person conducting a soda fountain, ice cream parlor, or other similar place of business shall provide serially numbered tickets to evidence separately the amount and tax paid for articles liable to tax under this section. The Commissioner, with the approval of the Secretary, is hereby authorized to make all necessary regulations to carry into effect the provisions of this paragraph.

TITLE VII-TAX ON CIGARS, TOBACCO, AND MANUFACTURES THEREOF.

Section 704. Dealers in leaf tobacco.

The following five suggestions for changes in this section have been made:

1. That the issue by collectors and the posting by dealers in leaf tobacco of certificates setting forth the place of business and the dealers' places of storage shall be made under such rules and regulations as the Commissioner of Internal Revenue shall prescribe, instead of in the manner now prescribed by this section of the law. 2. That the time for filing inventories be changed from January to July, as generally desired by the tobacco trade.

3. That a dealer in leaf tobacco be permitted to ship to another dealer in the same commodity in order to recognize the trade practices.

4. That the maximum penalty for violations of this section be increased from $500 to $5,000 to make this section of the law agree with the penalty prescribed by section 3360 of the Revised Statutes before amendment by section 704 of the revenue act of 1918.

5. That the definition of "dealer in leaf tobacco" be extended to include every person operating a tobacco storage warehouse, rehandling plant, or stemmery, and every exporter of leaf tobacco.

It has been suggested that these changes could be accomplished by amendments in substantially the following form:

Strike out the last paragraph of subdivision (a) of section 704 and insert:

Every such dealer shall be assigned a number by the collector of the district, which number shall appear in every inventory, invoice and report rendered by the dealer, who shall also obtain eertificates from the collector of the district setting forth the place where his business is carried on and the places-designated by the dealer as the places of storage of his tobacco, which eertificates shall be posted conspicuously within the dealer's registered place of business, and within each designated place of storage and certificates setting forth the dealer's registered place of business and the place where tobacco is stored by him shall be issued by the collector of the district and shall be posted or kept by each dealer under such rules and regulations as the Commissioner shall prescribe.

Strike out the first paragraph of subdivision (b) of section 704 and insert:

(b) Every dealer in leaf tobacco shall make and deliver to the collector of the district a true inventory of the quantity of the different kinds of tobacco held or owned, and where stored by him, on the first day of January July of each year, or at the time of commencing and at the time of concluding business, if before or after the first day of January July, such inventory to be made under oath and rendered in such form as may be prescribed by the Commissioner.

Strike out the first paragraph of subdivision (c) of section 704 and insert:

(c) Sales or shipments of leaf tobacco by a dealer in leaf tobacco shall be in quantities of not less than a hogshead, tierce, case, or bale, except loose leaf tobacco comprising the breaks on warehouse floors, and except to a duly registered manufacturer of cigars for use in his own manufactory exclusively, or to another dealer in leaf tobacco.

Strike out paragraph (3) of subdivision (e) of section 704 and insert:

(3) Who fraudulently omits to account for tobacco purchased, received, sold or shipped; shall be fined not less than $100 or more than $500 $5,000, or imprisoned not more than one year, or both.

Strike out subdivision (f) of section 704 and insert:

(f) For the purposes of this section a farmer or grower of tobacco shall not be regarded as a dealer in leaf tobacco in respect to the leaf tobacco produced by him, but every person operating a tobacco storage warehouse, rehandling plant, or stemmery and every exporter of leaf tobacco shall be regarded as a dealer in leaf tobacco.

TITLE VIII-TAX ON ADMISSIONS AND DUES.

Section 800. Admissions by season ticket or subscription.

It has been suggested that the law should be amended to provide that the established price for a season ticket or subscription shall be deemed not to be an admission at reduced rates.

It has been suggested that this change could be accomplished by an amendment as follows:

Amend paragraph (2) of subdivision (a) of section 800, by adding at the end thereof after the word "admitted" a colon and the following:

Provided. That the established price for single admissions by season ticket or subscription shall not be deemed to be a reduced rate within the meaning of this subdivision

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