Sec. CHAPTER TWELVE. OLEOMARGARINE. Act August 2, 1886 (24 Stat. 209), as amended October 1, 1890. Sec. 13. Stamps on empty packages. 15. Forfeiture of unstamped pack ages. 16. Exportation. 17. Forfeiture and penalty for fraud by manufacturer. 18. Penalty and forfeiture for omitting to do things required or doing things forbidden. 19. Recovery of fines, penalties, and forfeitures. 20. Regulations to be made by commissioner. 21. Act took effect October 31, 1886. Treatment of stock on hand. An act defining butter; also imposing a tax upon and regulating the manufacture, sale, importation, and exportation of oleomargarine. Act Aug. 2, 1886. Definition of butter. SEC. 1. That for the purpose of this act the word "butter" shall be understood to mean the food product usually known as butter, and which is made exclusively from milk or cream, or both, with or without common salt, and with or without additional coloring-matter. It is the duty of dealers in butter to ascertain the true character of the article which they sell or offer for sale; and if they are found to have sold oleomargarine, though they allege that they believed it to be genuine butter, the special tax and fifty per centum additional will be assessed against them. Letter to Collector Bigler, March 21, 1889. The keeper of a restaurant who furnishes oleomargarine merely to patrons cannot be regarded as a retail dealer in oleomargarine. By Sec. 6 of the act, a retail dealer is confined strictly to sales "from original stamped packages." 32 Int. Rev. Rec. p. 381. Act Aug. 2, 1886. Definition of oleomargarine. SEC. 2. That for the purposes of this act certain manufactured substances, certain extracts, and certain mixtures and compounds, including such mixtures and compounds with butter, shall be known and designated as "oleomargarine," namely: All substances heretofore known as oleomargarine, oleo, oleomargarine oil, butterine, lardine, suine, and neutral; all mixtures and compounds of oleomargarine, oleo, oleomargarine oil, butterine, lardine, suine, and neutral; all lard extracts and tallow extracts; and all mixtures and compounds of tallow, beef fat, suet, lard, lard oil, vegetable oil, annotto, and other coloring matter, intestinal fat, and offal fat made in imitation or semblance of butter, or, when so made, calculated or intended to be sold as butter or for butter. The Attorney-General of the United States has rendered an opinion, under date of October 18, 1886, to the effect that the last clause of Sec. 2, act Aug. 2, 1886, should be construed as qualifying all the preceding portion of said section. He says: "In my opinion, the qualification extends to the whole section, and is an essential element of the statutory definition of oleomargarine." In deference to the above opinion, said section is construed as though it read as follows: "That for the purposes of this act certain manufactured substances, certain extracts, and certain mixtures and compounds, including such mixtures and compounds with butter, shall be known and designated as 'oleomargarine' whenever made in imitation or semblance of butter, or, when so made, calculated or intended to be sold as butter or for butter, namely: All substances heretofore known as oleomargarine, oleo, oleomargarine oil, butterine, lardine, suine, and neutral; all mixtures and compounds of oleomargarine, oleɔ, oleomargarine oil, butterine, lardine, suine, and neutral; all lard extracts, and tallow extracts, and all mixtures and compounds of tallow, beef fat, suet, lard, lard oil, vegetable oil, annotto, and other coloring-matter, intestinal fat, and offal fat." The mixture of butter with coloring-matter does not, under this law, render it liable to tax as oleomargarine, such mixture being permitted under the definition given in the first section. If, however, the annotto or other coloring-matter is mixed with a vegetable oil or an animal fat other than butter fat as a mordant, resulting in a compound resembling butter, this compound would be liable to tax as oleomargarine when manufactured and sold or removed. Int. Rev. Reg., Series 7, No. 9, Revised. SEC. 3. That special taxes are imposed as follows: Manufacturers of oleomargarine shall pay Act Aug. 2, 1886. Special taxes. six hundred dollars. Every person who manufactures oleomargarine for sale shall be Manufacturers deemed a manufacturer of oleomargarine. of oleo, $600. four dealers in oleo, Wholesale dealers in oleomargarine shall pay hundred and eighty dollars. Every person Wholesale who sells or offers for sale oleomargarine in $480. the original manufacturer's packages shall be deemed a wholesale dealer in oleomargarine. But any manufacturer of oleomargarine who has given the required bond and paid the required special tax, and who sells only oleomargarine of his own production, at the place of manufacture, in the original packages to which the taxpaid stamps are affixed, shall not be required to pay the special tax of a wholesale dealer in oleomargarine on account of such sales. Retail dealers in oleo, $48. Secs. 3232, 3233, 3234, 3235, 3236, 3237, 3238, 3239, 3240, 3241, 3243, R. S., extended taxes as far as applicable. Retail dealers in oleomargarine shall pay forty-eight dollars. Every person who sells oleomargarine in less quantities than ten pounds at one time shall be regarded as a retail dealer in oleomargarine. And sections thirty-two hundred and thirty-two, thirty-two hundred and thirtythree, thirty-two hundred and thirty-four, to oleo special thirty-two hundred and thirty-five, thirty-two hundred and thirty-six, thirty-two hundred and thirty-seven, thirty-two hundred and thirty-eight, thirty-two hundred and thirty-nine, thirty-two hundred and forty, thirty-two hundred and forty-one, and thirtytwo hundred and forty-three of the Revised Statutes of the United States are, so far as applicable, made to extend to and include and apply to the special taxes imposed by this section, and to the persons upon whom they are imposed. * * * [Proviso repealed by Sec. 53, act Oct. 1, 1890.] See, also, under Sec. 3244, par. 12, and notes. Act Aug. 2, 1886. Penalties for carrying on the business of manufacturer, wholesale or retail dealer in oleo, without payment of special tax. SEC. 4. That every person who carries on the business of a manufacturer of 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 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, 1886. pay notices, inven bonds, and as required by law, shall, besides being liable to the ment of the tax, be fined not less than fifty nor more than five hundred dollars for each and every offense. SEC. 5. That every manufacturer of oleomargarine shall file with the collector of internal revenue Act Aug. 2, of the district in which his manufactory is Manufacturers' located such notices, inventories, and bonds, tories, books, shall keep such books and render such re- signs. turns of material and products, shall put up such signs and affix such number to his factory, and conduct his business under such surveillance of officers and agents, as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may by regulation require. But the bond required of such manufacturer shall be with sureties satisfactory to the collector of internal revenue, and in a penal sum of not less than five thousand dollars; and the sum of said bond may be increased from time to time, and additional sureties required, at the discretion of the collector or under instructions of the Commissioner of Internal Revenue. Act Oct. 1, 1890. Books to be kept by whole SEC. 41, act October 1, 1890. That wholesale dealers in oleomargarine shall keep such books and render such returns in relation thereto as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may by regulation require, and such books shall be open at all times to the inspection of any internal revenue officer or agent. sale dealers in oleo and returns to be made. 1886. SEC. 6. That all oleomargarine shall be packed by the manufacturer thereof in firkins, tubs, or Act Aug. 2, other wooden packages not before used for that purpose, each containing not less than ten pounds, and marked, stamped, and branded as the Commis |