imposed by law on articles of Porto Rican manufacture coming into the United States for consumption or sale may hereafter be paid by affixing to such articles before shipment thereof a proper United States internal-revenue stamp denoting such payment, and for the purpose of carrying into effect the provisions of this Act the Secretary of the Treasury is authorized to grant to such collector of internal-revenue as may be recommended by the Commissioner of Internal Revenue, and approved by the Secretary, an allowance for the salary and expenses of a deputy collector of internal revenue, to be stationed at San Juan, Porto Rico, and the appointment of this deputy to be approved by the Secretary. The collector will place in the hands of such deputy all stamps necessary for the payment of the proper tax on articles produced in Porto Rico and shipped to the United States, and the said deputy, upon proper payment made for said stamps, shall issue them to manufacturers in Porto Rico. All such stamps so issued or transferred to said deputy collector shall be charged to the collector and be accounted for by him as in the case of other tax-paid stamps. The deputy collector assigned to this duty shall perform such other work in connection with the inspection and stamping of such articles, and shall make such returns as the Commissioner of Internal Revenue may, by regulations approved by the Secretary of the Treasury, direct, and all provisions of existing law relative to the appointment, duties, and compensation of deputy collectors of internal revenue, including office rent and other necessary expenses, shall, so far as applicable, apply to the deputy collector of internal revenue assigned to duty under the provisions of this Act. SEC. 2. That before entering upon the duties of his office such deputy collector shall execute a bond, payable to the collector of internal revenue appointing him, in such amount and with such sureties as he may determine. Approved, June 29, 1906. (T. D. 1023.) Playing cards-Division of pack into two parts. Where a pack of 52 cards is divided into two parts, each containing 26 cards, it is not a compliance with the statute to place a 1-cent stamp on each of these parts. Each is to be regarded as a pack on which the 2-cent stamp is required. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., July 2, 1906. SIR: Your letter of the 27th ultimo has been received, inquiring whether you can "divide the ordinary pack of 52 cards in two parts, making 26 cards in each part, and place a 1-cent stamp on each part of 26 cards," or whether you would "be obliged to place a 2-cent stamp on each one of the parts of 26 cards.” My reply is that on each of these parts or packs containing 26 cards a 2-cent stamp must be affixed. The statute, section 38, act of August 28, 1894, provides for the payment of "a tax of two cents for and upon every pack of playing cards containing not more than fifty-four cards." It matters not, therefore, how many cards less than 54 the pack contains. The 2-cent stamp is required on every such pack. Under the long-settled ruling any number of cards in a deck above 54 and not exceeding another 54 must be regarded for the purposes of this act as belonging to another pack, upon which an additional tax of 2 cents must be paid. Respectfully, Mr. ROBT. WILLIAMS, Jr., Acting Commissioner. (T. D. 1024.) Alcohol denatured for use in the arts-Limitations. Domestic alcohol to be denatured under the provisions of the act of Congress approved June 7, 1906, for use in the arts and industries, will be such only as is produced at regularly established distilleries. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., July 10, 1906. SIR: Replying to your letter of the 6th instant, in which you state that you wish "to get in touch with the alcohol situation," and in which you ask to be informed as to the practical operation of the denatured alcohol bill, I will state that the regulations authorized by the act of June 7, 1906 (the denatured alcohol law) are now being prepared. They will not be ready for general distribution until about October 1, 1906. You state that you "do not understand this bill allows anyone to make alcohol, but that it must be made in the usual fashion-in some way come into Government control. Doubtless the same regulations as now in reference to its manufacture are to prevail, but the Government, when it is released from bond, instead of collecting the tax, is to denaturize it." You are correct in your view as to the law. There has been no change in the law relating to the manner in which alcohol can be manufactured. Persons who desire to manufacture distilled spirits for any purpose must comply with all of the provisions of the law relating to the setting up of distilleries and the operation of same. The distillery must be constructed in the manner now prescribed by the law and the regulations. The usual distiller's bond must be given; the distillery must be surveyed by a duly authorized officer; a distillery warehouse must be established; a storekeeper-gauger or a storekeeper and a gauger must be assigned to duty at the distillery; the product must be entered in distillery bonded warehouse, and, in fact, all of the provisions of the law relating to the setting up and the operation of registered distilleries, the manufacture of distilled spirits at such distilleries, and the depositing of such spirits in distillery bonded warehouse must be complied with. The new law simply provides that alcohol, of such proof as may be determined, may be withdrawn free of tax provided it is denatured after it is so withdrawn in such manner that it can not be used as a beverage or in the manufacture of liquid medicinal preparations. The conditions under which such alcohol may be withdrawn, denatured, and put upon the market are to be prescribed by regulations by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury. Materials from which alcohol for denaturing and withdrawal free from internal-revenue tax may be produced.—Method of production and distilleries where alcohol suitable for denaturing purposes may be manufactured. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., July 13, 1906. GENTLEMEN: I am in receipt of your letter of the 12th instant, in which you state that there are large quantities of fruit and vegetable parings at the various packing houses which you think can be used to manufacture commercial alcohol under the denatured-alcohol law, and state you would like to know if it will be necessary to have a separate plant from your fruit brandy distillery at which to manufacture alcohol under said law. In reply, you are advised that under the provisions of section 3255, Revised Statutes of the United States, as amended, the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may exempt distillers of brandy made exclusively from apples, peaches, grapes, pears, pineapples, oranges, apricots, berries, prunes, figs, or cherries from any provision of the law relating to the operation of distilleries, except as to the tax on the spirits produced at such distillery. Under the authority conferred by this statute regulations have been adopted exempting distilleries using the fruits mentioned above from the provisions of all of sections 3262, 3263, 3267, 3269, 3271, 3273, 3275, 3279, 3284, 3285, 3294, 3302, 3310, 3318, and parts of sections 3259, 3266, 3303, 3305, 3307, 3364, 3287, 3293, 3295, 3244, 3309, 3311, and 3318a of the Revised Statutes of the United States. Brandy distilleries are now operated under these regulations. You state that you wish to use pineapple parings, tomato parings, pea hulls, banana parings, sugar-corn cobs, and other refuse from canning establishments in the manufacture of alcohol for denaturing purposes. With the exception of pineapple parings none of the several vari eties, of materials mentioned by you can now be used in the manu facture of distilled spirits at a distillery set up and operated under the law and regulations relating to fruit brandy distilleries. A distillery at which tomato parings, pea hulls, banana parings, sugar-corn cobs, etc., could be used in the manufacture of distilled spirits, must be constructed and operated under the general law. Such distillery must be constructed and operated under the law and regulations under which grain and molasses distilleries are now constructed and operated. It is possible that your brandy distillery could be remodeled and certain additions made to it, such as a cistern room, warehouses, etc. If this could be done there would be no objection to using it as a fruit brandy distillery during the fruit season, and as a distillery for the manufacture of alcohol for denaturing purposes during the rest of the year. You will understand, of course, that the law relating to the construction and operation of distilleries has not been changed. The denatured-alcohol law simply provides that alcohol manufactured in the usual manner at registered distilleries may be withdrawn from bond free of tax for denaturing purposes, and may be put upon the market after it has been so denatured that it can not be used as a beverage or in the manufacture of liquid medicinal preparations. In the construction of a distillery at which it is intended to produce alcohol for denaturing purposes, regulations No. 7, issued by this Department, will apply. The regulations authorized by the denatured-alcohol law are now being prepared, and they will be ready for general distribution about October 1, 1906. These regulations will relate to the manner of withdrawing alcohol free of tax for denaturing purposes, the denaturing of same, and the putting of it upon the market. Respectfully, Messrs. ROBT. WILLIAMS, Jr., Acting Commissioner. (T. D. 1026.) Dealers in leaf tobacco or manufacturers of tobacco or cigars may sell leaf tobacco (unmanufactured) without payment of tax to the Department of Agriculture for use of the Government in making comparative and experimental tests, upon permits Form 100 to be issued by the collector. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., July 18, 1906. To collectors of internal revenue: The question having been submitted to this office as to the right of the Department of Agriculture to purchase, free of tax, from manufacturers of tobacco or cigars, or from qualified dealers in leaf tobacco, unmanufactured leaf tobacco for the use of said Department in making comparative tests of the different types of commercial varieties of tobacco and for experimental purposes, the office holds that, notwithstanding the restrictions placed by law upon the sale of leaf tobacco by subsection 6 of section 3244, Revised Statutes, and section 69, act approved August 28, 1894, the privilege given by section 3464, Revised Statutes, of purchasing supplies of goods imported from foreign countries for the use of the United States, duty free, which privilege is also extended to all articles of domestic production which are subject to tax, is deemed sufficient authority for permitting manufacturers of tobacco or cigars or dealers in leaf tobacco to sell to the Department of Agriculture, without payment of tax, such quantities of leaf tobacco as may be required for the purposes above mentioned. In order that the tobacco so purchased may be properly traced, and that manufacturers or dealers in leaf tobacco may be given specific authority to sell and obtain credit in their accounts for the tobacco sold, it has been arranged that application will first be made by the Secretary of Agriculture to this office specifying the kind and quantity of tobacco he wishes to purchase, and the name and address of the manufacturer or dealer from whom the purchase is to be made, upon receipt of which instructions will be issued to the collector of the district in which the dealer or manufacturer is located authorizing the sale. Upon receipt of such instructions the collector will issue a permit on Form 100 to the manufacturer or dealer in leaf tobacco covering the transaction, and such permit will be authority for the sale and such credits as may be necessary in the manufacturer's or dealer's accounts. ROBT. WILLIAMS, Jr., Acting Commissioner. Approved: LESLIE M. SHAW, Secretary of the Treasury. (T. D. 1027.) Relative to granting relief to special-tax payers where special-tax stamps have been accidentally lost or destroyed. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., July 20, 1906. To collectors of internal revenue: Section 3239, Revised Statutes, provides that Every person engaged in any business, avocation, or employment, who is thereby made liable to a special tax, except tobacco peddlers, shall place and keep conspicuously in his establishment or place of business all stamps denoting the payment of said special tax. |