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Sec.

CHAPTER SEVENTEEN.

PROVISIONS COMMON TO SEVERAL OBJECTS OF

ΤΑΧΑΤΙΟΝ.

3443. Fraudulent claims for drawback; penalty.

3444. Collector's monthly account of articles in bonded warehouses and articles exported.

3445. Stamps, instruments for attaching, canceling, etc.

3446 (amended). Power to alter or change stamps, marks, labels, etc. [3446a.] Stamps to be sent to officers by mail, registered.

3447. Where mode of assessing or collecting tax is not provided for; regulations authorized.

3448. Internal-revenue laws, when coextensive with jurisdiction of United States.

3449. Removing liquors under other than the proper name known to the trade; penalty.

3450. Removing or concealing articles with intent to defraud; forfeiture and penalty.

Sec.

3457. Packages included in forfeiture of goods.

3458. Goods seized may be delivered to marshal before process issues, etc.

3459. Bonding of goods seized. 3460. Proceedings on seizure of goods valued at $500 or less.

3461. Application for remission. 3462. Search warrants.

3463 and [3463a]. Informers' rewards.

Appropriation for detecting frauds. 3464. Purchasing for the Government goods subject to tax.

3465. Construction of act March 2, 1833. Act of August 13, 1894, amended. Guarantee corporation may be accepted as sole surety on recognizances, stipulations, bonds, and undertakings.

Section 5 of the legislative, executive, and judicial appropriation act of March 2, 1895. Relative to official bonds.

3451. Fraudulently executing documents; Act of August 8, 1888. Notice of deficiency

penalty.

3452. Having property in possession with

intent to sell in fraud of law or to evade taxes; penalty.

3453. Property found in possession in fraud of revenue laws; forfeiture.

3454. Sales to evade tax; forfeiture. 3455. Disposing of or receiving or making empty stamped packages; penalties.

3456. Penalty and forfeiture by distillers, etc., for omitting things required and for doing things forbidden.

in accounts of principals to be given to sureties upon bonds of United States officials. Limitation of time within which suits shall be brought against sureties. Section 31, act of June 13, 1898. Former laws made applicable.

Legislation relative to Hawaii, Porto Rico, and the Philippines.

SEC. 3441. Relative to drawback on fermented liquors; repealed by act of June 18, 1890 (26 Stat., 162). See page 255.

SEC. 3442. Obsolete by repeal of section 3441.

claims for draw

SEC. 3443. Whenever any person fraudulently claims or Fraudulent seeks to obtain an allowance of drawback on goods, wares, back; penalty. or merchandise on which no internal duty shall have been paid, or fraudulently claims any greater allowance of drawback than the tax actually paid as aforesaid, he shall forfeit triple the amount wrongfully or fraudulently claimed

72170°-11-23

353

monthly account

or sought to be obtained, or the sum of five hundred dollars, at the election of the Secretary of the Treasury.

Section 3330, page 220, provides a penalty in the case of fraudulent claims for drawback on spirits, and section 25, act of February 8, 1875 (sec. [3386a], p. 277), in the case of fraudulent claims for drawback on tobacco.

Drawback is now allowed on distilled spirits, tobacco, snuff, cigars, cigarettes, and stills.

No drawback is allowed upon spirits bottled in bond, page 237. Drawback allowed on articles shipped to the Philippines. (Act of Mar. 8, 1902, p. 375.)

Drawback on stills, page 134.

Drawback on medicinal and toilet preparations manufactured from tax-paid alcohol, page 337.

Collector's SEC. 3444. Every collector who has charge of any wareof articles in house in which distilled spirits, or other articles, are stored bonded ware in bond, shall render a monthly account of all such articles cles exported. to the Commissioner of Internal Revenue, by whom such

houses and arti

account shall be examined and adjusted monthly, so as to exhibit a true statement of the responsibility of such collector thereon. In adjusting such account, the collector shall be charged with all the articles which may have been deposited or received under the provisions of law, in any warehouse in his district and under his control, and shall be credited with all such articles shown to have been removed therefrom according to law, including transfers to other collectors and to his successor in office, and also whatever allowances may have been made in accordance with law to any owner of such goods or articles for leakage or other losses.

And every collector from whose district any distilled spirits, tobacco, snuff, or cigars are shipped in bond, under the provisions of this Title, shall render a monthly account of the same to the Commissioner of Internal Revenue, showing the amount of each article produced and shipped in bond, the amounts of which the exportation is completed according to law, and the amount remaining unaccounted for at the end of each month; also any excesses or deficiencies on the amounts originally reported as shipped.

Changes of SEC. 3445. The Commissioner of Internal Revenue may stamps, instruments for attach- make such change in stamps, and may prescribe such ining protecting, struments or other means for attaching, protecting, and

and canceling.

canceling stamps, for tobacco, snuff, cigars, distilled spirits, and fermented liquors, or either of them, as he and the Secretary of the Treasury shall approve; such instruments to be furnished by the United States to the person using the stamps to be affixed therewith, under such regulations as the Commissioner of Internal Revenue may prescribe.

Regulations under this section have the force of law. (15 Op. Atty. Gen., 191.)

Rubber stamps may be used instead of stencils for canceling strip stamps on cigar boxes. (Circular letter, Oct. 15, 1897; 43 Int. Rev. Rec., 385.)

to es

revenue stamps,

SEC. 3446 [as amended by sec. 18, act of Mar. 1, 1879 (20 Power tablish, alter, or Stat., 327)]. The Commissioner of Internal Revenue, change internalwith the approval of the Secretary of the Treasury, may marks, or labels, establish and, from time to time, alter or change the form, etc. style, character, material, and device of any stamp, mark, or label used under any provision of the laws relating to internal revenue. Such stamps shall be attached, protected, removed, canceled, obliterated, and destroyed, in such manner and by such instruments or other means as he, with the approval of the Secretary of the Treasury, may prescribe; and he is hereby authorized and empowered to make, with the approval of the Secretary of the Treasury, all needful regulations relating thereto; and all pains, penalties, fines, and forfeitures now provided by Penalties. law relating to internal-revenue stamps shall apply to and have full force and effect in relation to any and all stamps which may or shall be so established by the Commissioner of Internal Revenue:

Provided, Such stamps or device or instrument or Expense. means of removal or obliteration, shall entail no additional expense upon the persons required to affix or use the same.

See section 321, page 45, as to authority of commissioner to provide stamps, etc.

Stamps for special taxes, section 3238, page 128; for distilled spirits, section 3312, page 207; for imitation wines, section 3328, page 217; for fermented liquors, section 3341, page 249; for tobacco, section 3369, page 267; for cigars, section 3395, page 285; for oleomargarine, section 8, act of August 2, 1886, amended, page 295. See appropriate sections for other articles.

The portraits of living persons upon internal-revenue stamps
not prohibited by section 3576, R. S., but their exclusion there-
from is in consonance with its spirit. (14 Op. Atty. Gen., 528.)
Hamilton-Brooks cigar stamp. (16 Op. Atty. Gen., 444; 26 Int.
Rev. Rec., 33; 17 Op. Atty. Gen., 111.)

Use of the Hunter stamp. (15 Op. Atty. Gen., 191.)
Fletcher's invention. (11 Ct. Cls., 748.)

Alleged infringement of patent. (Fletcher v. Blake, 131 U. S.,
cxcvii appendix; 27 Int. Rev. Rec., 6. Hollister v. Benedict &
Burnham Manufacturing Co., 113 U. S., 59; 31 Int. Rev. Rec., 30.
Solomons v. United States, 22 Ct. Cls., 335.)

Stamps for spirits, beer, tobacco, snuff, and cigars are not
legitimate articles of traffic. (11 Int. Rev. Rec., 57; Amer.
Brewing Co. v. U. S., 33 Ct. Cls., 351.)

* *

sent to officers by

[SEC. 3446a.] [Extract from legislative, executive, and ju- Stamps to be dicial appropriation act approved Aug. 15, 1876 (19 mail, registered. Stat., 152).] * And hereafter the transmission of internal revenue stamps to the officers of the internal revenue service shall be made through the mails of the United States in registered packages.

* * *

Internal-revenue stamps may be mailed to collectors and stamp deputy collectors or returned by them to the commissioner in full packages without regard to the 4-pound limit of weight. (T. D. 18947, 1898.)

assessing or col

SEC. 3447. Whenever the mode or time of assessing or Where mode of collecting any tax which is imposed is not provided for, lecting any tax is the Commissioner of Internal Revenue may establish the regulations.

Internal - revenue laws, when

jurisdiction of

same by regulation. He may also make all such regulations, not otherwise provided for, as may have become necessary by reason of any alteration of law in relation to internal revenue.

Spreckels S. R. Co. v. McClain (113 Fed. Rep., 244; T. D. 462; 109 Fed. Rep., 76; T. D. 350).

SEC. 3448. The internal-revenue laws imposing taxes on coextensive with distilled spirits, fermented liquors, tobacco, snuff, and United States. cigars shall be held to extend to such articles produced anywhere within the exterior boundaries of the United States, whether the same be within a collection-district or not.

Removing any liquors or wines

Indian Territory: The Cherokee Tobacco (Boudinot's factory) (11 Wall., 616; 14 Int. Rev. Rec., 11).

In this case the Supreme Court ruled that the Indian Territory was included in the general terms of this section, notwithstanding any prior treaty, and that the provisions of the internal-revenue law as to distilled spirits, fermented liquors, and tobacco were applicable therein.

Liquor dealers in Indian Territory. (22 Int. Rev. Rec., 109; 23 ibid., 125. United States v. Forty-three Gallons of Whisky; 108 U. S., 491; 29 Int. Rev. Rec., 188.)

Special-tax stamps, being only receipts for taxes paid, may be issued by the collector of internal revenue, notwithstanding acts of Congress relative to sale of liquors in the Indian Territory. (T. D. 18911, 1898.)

Section 2141, Revised Statutes, provides as follows: Every person who shall, within the Indian country, set up or continue any distillery for manufacturing ardent spirits shall be liable to a penalty of one thousand dollars; and the superintendent of Indian affairs, Indian agent, or subagent, within the limit of whose agency any distillery of ardent spirits is set up or continued, shall forthwith destroy and break up the same.

The Attorney General, in an opinion rendered October 4, 1898, held that the establishment of a distillery in the Indian Territory, notwithstanding it was on land to which the Indian title was extinct, would be in contravention of law. (T. D. 20162, 1898; 22 Op. Atty. Gen., 232.)

Oklahoma and Indian Territory to form a State government. Act June 16, 1906. (34 Stat., 267.) Oklahoma admitted as a State November 16, 1907. (35 Stat., 2161.)

Alaska added to Oregon district December 27, 1872.

Alaska, case of Savaloff (17 Int. Rev. Rec., 20); case of Stephens (28 ibid., 194).

The payment of the special tax is no defense to a prosecution for illegally selling liquors in Alaska. (United States v. Ash, 75 Fed. Rep., 651; Endleman v. United States, 86 Fed. Rep., 456.)

An act to define and punish crimes in the District of Alaska and to provide a code of criminal procedure for said districi. (Act of March 3, 1899, 30 Stat., 1253.)

Section 477 provides: "That nothing in this act shall in any way repeal, conflict, or interfere with the public general laws of the United States imposing taxes on the manufacture and sale of intoxicating liquors for the purpose of revenue and known as the 'internal-revenue laws.""

The act of June 6, 1900, (31 Stat., 321), makes further provision for civil government in Alaska.

Philippine Islands (24 Op. Atty. Gen., 120). See p. 375.

SEC. 3449. Whenever any person ships, transports, or under other than removes any spiritous or fermented liquors or wines, trade names; under any other than the proper name or brand known to the trade as designating the kind and quality of the con

penalty.

tents of the casks or packages containing the same, or causes such act to be done, he shall forfeit said liquors or wines, and casks or packages, and be subject to pay a fine of five hundred dollars.

Construction of this section in case of shipment of spirits under a false desgination. (Attorney General Taft's letter to Secretary of the Treasury; 22 Int. Rev. Rec., 261.)

Section 3449 was passed to prevent frauds on the revenue and to assist revenue officers in discovering such frauds. It has no reference to marks or brands placed upon packages by Government officers. (Woolner & Co. v. Rennick, (1908), 170 Fed. Rep., 662; T. D. 1425.)

When spirituous liquors contained in bottles are packed in barrels and shipped and the barrels are marked "groceries," such shipment is a violation of this section. (United States v. Liquor Dealers' Supply Co., 156 Fed. Rep., 219; T. D. 1292.)

When spirituous liquors contained in bottles are packed in barrels and shipped, and the barrels are not marked, but described in bill of lading as "drugs," such shipment is a violation of section 3449. The matter of intent is immaterial. (Charge to the jury in United States v. Robert Stevenson & Co.; T. D. 1644.)

The requirements of this statute can not be limited to distillers, manufacturers, and rectifiers, as its language covers all persons who ship, transport, or remove liquors or wines. (United States v. Camp et al., Northern District of California (1898), 89 Fed. Rep., 697.) See 133 Fed. Rep. 910 (T. D. 844) for later decision of Cir. Ct. of appeals.

Section 3449 not unconstitutional because in some cases it incidentally acts as a protection to trade-marks. (United States v. Loeb (1892), 49 Fed. Rep., 636; 38 Int. Rev. Rec., 78.)

The term "package," as used in section 3449, includes every
box, barrel, or other receptacle into which distilled spirits have
been placed for shipment or removal, either in quantity or in
separate small packages, as bottles or jugs. (United States v.
132 Packages of Spirituous Liquors and Wines et al. (1896), circuit
court of appeals, 76 Fed. Rep., 364; 42 Int. Rev. Rec., 438.)

Packages of less than 5 gallons marked "Glass, this side up
with care. Section 3449 does not apply. (United States v.
Twenty Boxes of Corn Liquor, 123 Fed. Rep., 135; 133 ibid., 910;
T. D. 844.)

"J. D. Iler's Rochester Tonic." (United States v. J. D. Iler
Brewing Co., 121 Fed. Rep., 41; T. D. 630.)

Shipping liquors under other than name as known to the trade. (T. D. 956; T. D. 1035.)

United States v. Sandefuhr (145 Fed. Rep., 49).

See provisions of the criminal code as to marking spirits. Appendix, p. 421.

concealing

or

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to defraud United

States of tax.

SEC. 3450. Whenever any goods or commodities for or Removing in respect whereof any tax is or shall be imposed, or any cles with intent materials, utensils, or vessels proper or intended to be made use of for or in the making of such goods or commodities are removed, or are deposited or concealed in any place, with intent to defraud the United States of such tax, or any part thereof, all such goods and commodities, and all such materials, utensils, and vessels, respectively, shall be forfeited; and in every such case all the casks, vessels, cases, or other packages whatsoever, containing, or which shall have contained, such goods or commodities, respectively, and every vessel, boat, cart, carriage, or other conveyance whatsoever, and all horses or other animals, and all things used in the removal or for the deposit or concealment thereof, respectively, shall be forfeited.

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