1. For doing business without giving bond, as required by law. 3242 a.)

2. For refusal to give new bond. (3260.)

3. For defrauding or attempting to defraud the government of its tax. (3257, 3281, 3453.)

4. For refusal or omission to keep the required books. 5. For making false entries in the required books. 6. For obliterating or canceling entries in the required books.

7. For the refusal to produce said books for the inspection of revenue officers. (3305.)

8. For carrying on the business of distiller after having given notice of intention to suspend. (3310.)

9. For removing or concealing distilled spirits with intent to defraud.

(3450.)

10. Tax-paid spirits found on the distillery premises. (3288.)

11. Packages of distilled spirits not having thereon the proper gauge, marks, stamps and brands. (3289, 3323.)

12. Distilled spirits unlawfully removed from the distillery or from the distillery warehouse. (3299, 3453.)

13. Distilled spirits removed after sunset and before sunrise. (3327.)

14. Distilled spirits shipped or removed under a false (3449.)

name.

15. Packages of spirits having thereon imitation stamps or counterfeit stamps. (3316 a.)

16. Distilled spirits shipped for export, and voluntarily relanded in the United States. (3330.)

17. Adding any substance to create fictitious proof. (3252.)

18. Emptied packages having thereon the marks, stamps and brands. (3324, 3455.)

All Horses, Carts, Boats and other Conveyances shall be Forfeited:

1. Used in unlawfully removing distilled spirits. (3327.) 2. Used in conveying emptied packages having the stamps, marks and brands thereon. (3324.)

3. Used in carrying material to a distillery which has not up the required sign. (3279.)

4. Any vessel on which distilled spirits have been shipped for export, and from which such spirits have been voluntarily relanded in the United States. (3330.)

5. Whose owner, agent or master connives at any change in spirits exported on his vessel (3330); or

6. Who knowingly abets the fraudulent collection of drawback on spirits shipped on his vessel. (3330.)

Rectifiers.

1. Rectifiers, who carry on their business without having paid the special tax, forfeit all distilled spirits, wines, apparatus, and personal property found on the rectifying premises. (3281.)

2. Packages of rectified spirits sent out without being gauged, marked and stamped as required by law, are also forfeited. (3323, 3232, 3456.)

HOW TO ASCERTAIN TAXABLE GALLONS ON REGAUGE-EXAMPLES.

(1) A package, the original contents of which were 50 wine gallons, 50 proof gallons, and 50 taxable gallons, when regauged after remaining in warehouse 35 months is found to contain 45 wine gallons and 45 proof gallons. The taxable gallons in this case are 45, and the tax-paid stamp will represent 45 gallons.

(2) A package, the original contents of which were the same as the foregoing, remaining in warehouse the same length of time, is found upon regauge to contain only 40 wine and 40.49 proof gallons. The maximum allowance in this case is 7.50 proof gallons. Deducting this amount from the original proof gallons leaves 42.50 proof gallons and 42.5 taxable gallons.

(3) A package, original contents and period in warehouse same as foregoing, is found on regauge to contain 46 wine gallons, 45.08 proof gallons. The taxable gallons contents are 46.

(4) A package, original contents 45 wine gallons, 45.45 proof gallons, 45.4 taxable gallons, upon regauge, after remaining in warehouse 30+ months, is found to contain 37 wine gallons, 37.37 proof gallons. The loss in this case being excessive, the loss allowed by law (7 gallons) being deducted from the original proof gallons contents gives 38.45 proof gallons, or 38.4 gallons on which the tax is to be paid.

(5) A package of 38 gallons' capacity, containing originally 52.50 proof gallons, when regauged, after remaining in warehouse

3+ months, is found to contain 51.43 proof gallons. The statute permits an allowance of only 0.75 of a proof gallon for the loss in this case, as the capacity of the cask is less than 40 wine gallons; therefore, the tax should be paid on 51.75 proof gallons, the taxable gallons being 51.7.

It will be observed that in cases where the loss exceeds the statute limit the proof gallons upon which tax is due may be ascertained by deducting the maximum allowance from the actual loss and adding the remainder to the present proof gallons contents. Thus, referring to example No. 2 above, 9.60-7.502.10; 2.10+40.40-42.50.

SHORTAGE IN PACKAGES OF LIQUORS.

Certain packages of whisky were inspected and gauged at the distillery, marks and brands placed thereon by the United States gaugers, and the taxes paid. Upon being regauged, some months later, at another place, it was found that there was a shortage in each package, and that the contents of each package were below the proof indicated by the marks. Held, that these facts were no evidence that the United States had been in any manner defrauded, and did not justify the forfeiture of the whisky, under § 3289.

U. S. vs. Fourteen Packages of Liquor, 5th U. S. Circuit Court, 1895.

SPECIAL TAX-INGWER LIQUEUR.

Ingwer liqueur, composed of alcoholic liquor and sugar, with a flavoring of ginger, is not a medicine under whatever label it may be sold, but belongs in the general class of liqueurs or cordials, for the manufacture of which for sale the special tax of a rectifier must be paid, and for sale of which the special tax of a liquor dealer.

Treasury Decision, January 4, 1899.

LIST OF TAXPAYERS KEPT.—

Sec. 3240.-Collectors are required to keep conspicuously in their offices for public inspection, an alphabetical list of the names of all persons paying special taxes in their districts.

SPECIAL TAX RECORDS CANNOT BE USED AS EVIDENCE IN STATE COURTS.

Records in a collector's office relating to special taxpayers are based on returns made by those persons under compulsion of law for the sole purpose of raising revenue for the United States.

Collectors are not permitted to send out these records, or copies thereof for use against the special taxpayers in cases not arising under the laws of the United States.

Treasury Decision, Feb. 25, 1898.

IMITATION STAMP.

Sec. 3316 a.-No person shall affix or cause to be affixed to or upon any cask or package containing or intended to contain, distilled spirits any imitation stamp, label, device, or token, in the similitude or likeness of, or that has the resemblance or general appearance of any internal revenue stamp required by law, on penalty of forfeiture of the goods and fine and imprisonment.

STAMPS MUST BE POSTED.

Sec. 3239.-All stamps denoting the payment of special taxes must be kept conspicuously posted in the place of business taxed, under penalty equal to tax and costs.

DUPLICATE STAMPS FOR PACKAGES OF SPIRITS FROM WHICH STAMPS HAVE BEEN LOST OR DESTROYED.—

Section 3315, Revised Statutes, authorizes the Commissioner of Internal Revenue, under such regulations as he may prescribe, with the approval of the Secretary of the Treasury, to issue stamps for restamping packages of distilled spirits which have been duly stamped, but from which the stamps have been lost or destroyed by unavoidable accident.

CASKS.

Sec. 3325.-No person shall buy or sell any cask or package with the inspection marks thereon, after the same has been used for distilled spirits.

OFFICER MUST NOT DIVULGE SECRETS.

Sec. 3167.-No officer or employe of the United States shall divulge or make known in any manner, except as provided by law, the operations, style of work, or apparatus of any manufacturer or producer visited by him in the discharge of his official duties, or the amount or source of in

come or profits, losses, or expenditures, shown in any return, under penalty of fine not exceeding $1,000, or imprisonment not exceeding one year, and dismissal from office.

SIGNS.

Sec. 3279.-Distillers, rectifiers and wholesale liquor dealers shall keep conspicuously posted on the outside of their place of business a plain sign with the name of the firm and business. The letters on such sign must be not less than three inches in length and of a proportionate width, painted in oil colors or gilded.

FALSE SIGNS.

Sec. 3279.-No one not a distiller, rectifier or wholesale liquor dealer who has complied with the law, shall put up any sign indicating that he is authorized to carry on such business.

FALSE NAME OR BRAND.

Sec. 3449.-No person shall ship, transport, or remove any spirituous or fermented liquors or wines under other than the proper name or brand known to the trade, under penalty of forfeiture and fine.

REMEDY IN CASE OF ILLEGAL ASSESSMENT.—

The proper course, in a case of illegal taxation, is to pay the tax under protest or with notice of suit, and then bring an action against the officer who collected it. The statute law of the United States, in express terms, gives a party who has paid a tax under protest the right to sue for its recovery.

Pollock vs. Farmers' Loan & Trust Co., 158 U. S. 609.

OFFICERS MAY ENTER PREMISES-OBSTRUCTING OFFICERS

PENALTY.

Sec. 3177.-Any collector, deputy collector, or inspector may enter, in the daytime, any building or place where any articles or objects subject to tax are made, produced, or kept within his district, so far as it may be necessary, for the purpose of examining said articles or objects. And any owner of such building or place, or person having the agency or