tablish, alter, or revenue stamps, SEC. 3446 [as amended by sec. 18, act of Mar. 1, 1879 (20 Power to esStat., 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 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 Use of the Hunter stamp. (15 Op. Atty. Gen., 191.) Alleged infringement of patent. (Fletcher v. Blake, 131 U. S., Stamps for spirits, beer, tobacco, snuff, and cigars are not Expense. 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.) Where mode of SEC. 3447. Whenever the mode or time of assessing or assessing or colcollecting any tax which is imposed is not provided for, lecting any tax is the Commissioner of Internal Revenue may establish the not provided for; regulations. nue 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). Internal reve- 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. 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. Removing any 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 penalty. the trade as designating the kind and quality of the con 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 Packages of less than 5 gallons marked "Glass, this side up "J. D. Iler's Rochester Tonic." (United States v. J. D. Iler 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. or concealing arti to defraud United 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 states of tax. 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. Penalty and forfeiture. Spirits forfeited; how disposed of. executing docu by internal-reve alty. And every person who removes, deposits, or conceals, or is concerned in removing, depositing, or concealing any goods or commodities for or in respect whereof any tax is or shall be imposed, with intent to defraud the United States of such tax or any part thereof, shall be liable to a fine or penalty of not more than five hundred dollars. And all boilers, stills, or other vessels, tools and implements, used in distilling or rectifying, and forfeited under any of the provisions of this Title, and all condemned material, together with any engine or other machinery connected therewith, and all empty barrels, and all grain or other material suitable for distillation, shall, under the direction of the court in which the forfeiture is recovered, be sold at public auction, and the proceeds thereof, after deducting the expenses of sale, shall be disposed of according to law. And all spirits or spirituous liquors which may be forfeited under the provisions of this Title, unless herein otherwise provided, shall be disposed of by the Commissioner of Internal Revenue as the Secretary of the Treasury may direct. An unofficial person may seize property as forfeited to the United States, and the Government, if it chooses, may adopt the seizure and make it the basis of legal proceedings. A proceeding by the Government to enforce the forfeiture by legal process is a confirmation of the seizure. (13 Op. Atty. Gen., 253, 256; The Caledonian, 4 Wheat., 99, 102; Gelston v. Hoyt, 16 Wheat., 245, 310; Taylor v. United States, 3 How., 197, 204.) Circular No. 224, relative to destruction of spirits. (26 Int. Rev. Rec., 105.) Rights of mortgagee. (United States v. Two Barrels Whisky (1899, C. C. A.) 96 Fed. Rep., 479; United States v. One Bay Horse, etc., 128 ibid., 207.) In statutory offenses a guilty intent is not necessarily an ingredient. (United States v. One Black Horse, 129 Fed. Rep., 167.) The illegal acts of agents or employees work forfeiture of property. (Bush v. U. S., 24 Fed. Rep., 917; 31 Int. Rev. Rec., 305; U. S. v. Stowell, 133 U. S., 1; 36 Int. Rev. Rec., 30; U. S. v. 7 Barrels Distilled Oil, 6 Blatch., 174; Fed. Cas. No. 16253.) In Pilcher v. Faircloth (135 Ala., 311), action to recover for the conversion of two mules seized and sold by the collector, the supreme court of Alabama held that the forfeiture took effect immediately upon the commission of the act, and the defendant by purchase at the collector's sale acquired title. Mules and a wagon, hired for the purpose of hauling produce to market, are forfeited when employed by the bailee in the removal of spirits in violation of law, although the owner had no information that his property would be employed in an unlawful purpose. (United States v. Two Bay Mules, 36 Fed. Rep., 84.) See notes under sec. 3453. Fraudulently SEC. 3451. Every person who simulates or falsely or ments required fraudulently executes or signs any bond, permit, entry, nue laws; pen-or other document required by the provisions of the internal-revenue laws, or by any regulation made in pursuance thereof, or who procures the same to be falsely or fraudulently executed, or who advises, aids in, or connives at such execution thereof, shall be imprisoned for a term not less than one year nor more than five years; and the property to which such false or fraudulent instrument relates shall be forfeited. See section 28, act March 4, 1909 (Criminal Code), p. 420, in appendix, penalties for forging, altering, counterfeiting affidavits, bonds, public records, etc. Fraudulent Form 122 forfeits spirits to which it relates. (Thacher, claimant of 102 packages of distilled spirits, v. The United States, 103 U. S. (13 Otto), 679, affirming 15 Blatch., 15; 27 Int. Rev. Rec., 144.) ty in possession sell in fraud of SEC. 3452. Every person who shall have in his custody Having properor possession any goods, wares, merchandise, articles, or with intent to objects on which taxes are imposed by law, for the purpose law, or to evade of selling the same in fraud of the internal-revenue laws, taxes; penalty. or with design to avoid payment of the taxes imposed thereon, shall be liable to a penalty of five hundred dollars or not less than double the amount of taxes fraudulently attempted to be evaded. U. S. v. Grotenkemper (2 Bond, 140, 26 Fed. Cas., 45.) property found fraud of revenue SEC. 3453. All goods, wares, merchandise, articles, or Seizure of objects, on which taxes are imposed, which shall be found in possession in in the possession, or custody, or within the control of any laws; forfeitures. person, for the purpose of being sold or removed by him in fraud of the internal-revenue laws, or with design to avoid payment of said taxes, may be seized by the collector or deputy collector of the proper district, or by such other collector or deputy collector as may be specially authorized by the Commissioner of Internal Revenue for that purpose, and shall be forfeited to the United States. And all raw materials found in the possession of any person intending to manufacture the same into articles of a kind subject to tax for the purpose of fraudulently selling such manufactured articles, or with design to evade the payment of said tax; and all tools, implements, instruments, and personal property whatsoever, in the place or building, or within any yard or inclosure where such articles or raw materials are found, may also be seized by any collector or deputy collector, as aforesaid, and shall be forfeited as aforesaid. The proceedings to enforce such forfeitures shall be in the nature of a proceeding in rem in the circuit court or district court of the United States for the district where such seizure is made. Personal property in the same inclosure with an illicit still. (United States v. Quantity of Rags, 7 Int. Rev. Rec., 123; 27 Fed. Cas., 16103.) Property liable to forfeiture without any regard to the misconduct of owner. (United States v. Distillery at Spring Valley, 11 Blatch., 255; 25 Fed. Cas., 854; 18 Int. Rev. Rec., 59, and decisions cited under sec. 3281, p. 173.) Mixture or confusion of fraud spirits with others. (The Distilled Spirits (Harrington's), 11 Wall., 356; 13 Int. Rey. Rec., 193; 10 ibid., 164. United States v. One Still, 5 Blatch., 403; 5 Int. Rev. Rec., 189.) An acquittal in a criminal prosecution is a bar to a proceeding in rem when the offense is the same. (Coffee v. United States, 116 U. S., 436; 32 Int. Rev. Rec., 38.) |