for which such firm has paid the special tax is modified to this extent:

That where the person or persons succeeding to and carrying on the business for which the dissolved firm has paid special tax belonged to such firm, further special tax should not be exacted of such successor for carrying on the same business, at the same place, or at another place to which the stamp has been transferred under Sec. 3241, Revised Statutes (United States v. Davis, 35 Internal Revenue Record, 46), for the remainder of the period for which the stamp was issued to the old firm.

But where a person, a member of a firm, carries on the business after the firm's dissolution, and associates with him a person who was not a member of the old firm, the new firm so constituted should be required to pay a special tax, and take out a new special-tax stamp, even though the name of such new firm be the same as that of the old. Decision No. 178. Int. Rev. Reg., Series 7, No. 1, p. 30.

SEC. 3242. * * * And every person who carries on the business of a brewer * * without hav- Carrying on

pay

business of

brewer with

out payment of special tax.

ing paid a special tax therefor, as required by law, shall, besides being liable to the ment of the tax, be fined not less than ten dollars nor more than five hundred dollars.

The portions of this section omitted have either been superseded by the provisions of Sec. 16, act February 18, 1875 (given below as Sec. 3242 a), or repealed by Sec. 26, act October 1, 1890, which repealed all the special taxes on manufacturers of and dealers in tobacco and cigars. There is no other provision than the one retained above for imposing a penalty on a brewer for carrying on business without payment of special tax, and this appears to be the only portion of original Sec. 3242 R. S. which remains as existing law.

[SEC. 3242 a.] Sec. 16, act of February 8, 1875 (18 Stat. 307). That any person who shall carry on the busi

ness of a rectifier, wholesale liquor dealer, retail liquor dealer, wholesale dealer in malt liquors, retail dealer in malt liquors, or manufacturers of

Rectifiers, liquor dealers, manufacturers

of stills carry

without paying

penalty.

Distiller carry

fraud; penalty.

not less

Fine and imprisonment.

ing on business stills, without having stills, without having paid the special tax as special tax; required by law, or who shall carry on the business of a distiller without having given bond as required by law, or who shall engage in or carry on the business of a distiller with ining on business tent to defraud the United States of the tax without giving bond, or with on the spirits distilled by him, or any part intent to dethereof, shall, for every such offense, be fined than one hundred dollars nor more than five thousand dollars and imprisoned not less than thirty days nor more than two years. And all distilled spirits or wines, and all stills or other apparatus, fit or intended to be used for the distilForfeiture. lation or rectification of spirits, or for the compounding of liquors, owned by such person, wherever found, and all distilled spirits or wines and personal property found in the distillery or rectifying establishment, or in any building, room, yard, or inclosure connected therewith, and used with or constituting a part of the premises; and all the right, title, and interest of such person in the lot or tract of land on which such distillery is situated, and all right, title, and interest therein of every person who knowingly has suffered or permitted the business of a distiller to be there carried on, or has connived at the same; and all personal property owned by or in possession of any person who has permitted or suffered any building, yard, or inclosure, or any part thereof, to be used for purposes of ingress or egress to or from such distillery which shall be found in any such building, yard, or inclosure, and all the right, title, and interest

of every person in any premises used for ingress or egress to or from such distillery, who has knowingly suffered or permitted such premises to be used for such ingress or egress, shall be forfeited to the United States.

Wholesale liquor dealers' wine and spirits not forfeited under Sec. 3242. United States v. 2,000 Bottles of Liquor, 5 Benedict, 265.

Indictment for carrying on business as wholesale liquor dealers without payment of special tax. United States v. Page, 2 Sawyer, 353.

Sale of spirituous liquors without license. United States v. Dodge, Deady's Reports, 186.

When a retail liquor dealer is prosecuted for carrying on business without payment of special tax, a subsequent payment of the tax will not relieve from punishment by fine and imprisonment, and he is liable if he purchased the rum in his own name, notwithstanding the money for purchasing the liquor was advanced to him by others, and he procured and sold the liquor without profit to himself. United States v. Angell, Circuit Court D. N. H., March, 1881, Clark, D. J., 11 Fed. Rep. 341. See, also, United States v. Devlin, 6 Blatch. 71.

Indictment for carrying on business as retail liquor dealer without payment of special tax. United States v. Howard, 1 Sawyer, 507.

In an indictment for carrying on business of retail liquor dealer without payment of special tax under Sec. 3242 R. S., the judge instructed the jury that the best explanation of the term "being engaged in the business" is this: when a person has procured spirituous liquor with the intention to sell it to any who may apply for it, or, having it on hand, determines to sell it out to any one who may apply for it, he must pay the special tax. If he does not, his attempt to carry out his intent is a violation of law, for he is engaged in the business of a retail liquor dealer without having paid the special tax. Also instructed the jury that if they permitted a neighbor or friend to have a part of the supply of whiskey

on hand for their own use, and did this in a spirit of accommodation, they could not be said to be engaged in the business even if they received money for this accommodation. United States v. Rennick, District Court W. D. S. C., 1886, Simonton, J., 28 Fed. Rep. 847.

In connection with the above, see the statutory definition of a retail liquor dealer, Sec. 3244 R. S., par. 4.

In case of a person prosecuted by information for doing business as a retail liquor dealer without payment of special tax, it was held that, inasmuch as the imprisonment prescribed for the offense in Sec. 3242 may be in the penitentiary, the punishment was infamous, and that a prosecution could only be had on a presentment or indictment by a grand jury, and not by information. United States v. Johannesen, Circuit Court S. D. Ga. E. D., May 3, 1888, Speer, J., 35 Fed. Rep. 411.

and dealers in

carrying on

out payment

of special tax.

[SEC. 3242 b.] Sec. 4, act of August 2, 1886 (24 Stat. Manufacturers 209). That every person who carries on the oleomargarine business of a manufacturer of oleomargarine business with without having paid the special tax therefor, as required by law, shall, besides being liable to the payment of the tax, be fined not less than one thousand and not more than five thousand dollars; and every person who carries on the business of a wholesale dealer in oleomargarine without having paid the special tax therefor, as required by law, shall, besides being liable to the payment of the tax, be fined not less than five hundred nor more than two thousand dollars; and every person who carries on the business of a retail dealer in oleomargarine without having paid the special tax therefor, as required by law, shall, besides being liable to the payment of the tax, be fined not less than fifty nor more than five hundred dollars for each and every offense.

SEC. 3243. The payment of any tax imposed by

Payment of special tax

not to authorof State laws,

ize violation

nor prohibit

State taxation.

the internal revenue laws for carrying on any trade or business shall not be held to exempt any person from any penalty or punishment provided by the laws of any State for carrying on the same within such State, or in any manner to authorize the commencement or continuance of such trade or business contrary to the laws of such State or in places prohibited by municipal law; nor shall the payment of any such tax be held to prohibit any State from placing a duty or tax on the same trade or business, for State or other purposes.

See decisions of Supreme Court noted under Sec. 3232.

imposed on

Brewers,

SEC. 3244. Special taxes are imposed as follows:First. Brewers shall pay one hundred dollars. Every person who manufactures fermented liquors Special taxes of any name or description for sale, from whom. malt, wholly or in part, or from any substitute $100 and $50. therefor, shall be deemed a brewer: Provided, That any person who manufactures less than five hundred barrels a year shall pay the sum of fifty dollars.

Brewers who have paid special tax as "brewers of less than 500 barrels," and who, during the same special-tax year, desire to increase their product, should make application for a new stamp of the denomination of $100.

On obtaining this new stamp, the brewer may apply to the Commissioner of Internal Revenue, under Sec. 3426 R. S., for the repayment to him of the value of the fifty-dollar stamp, less five per cent deduction therefrom. Int. Rev. Reg., Series 7, No. 1, Revised, p. 31.

Brewers, who, on the brewery premises or at any other place, sell fermented liquors manufactured by themselves or others in quantities less than five gallons, except in the original stamped eighth-barrel package of their own manufacture, will be required to pay the special tax of retail dealers in