MUST WINE BOTTLES AND JUGS BE STAMPED? QUESTION. How would you decide the following: A retail dealer has on tap a barrel of California sweet wine, port, sherry or Angelica. A customer walks in with a quart bottle and says: "Please fill this bottle for me" or "Give me a quart of port wine in this bottle." Must the bottle be stamped by the seller? The next moment a customer enters with a pitcher or bucket and says: "Give me a quart of port wine in this vessel." The quart of wine is sold to him out of the same barrel from which the bottle was filled. There is nothing in any law requiring the stamping of pitchers or pails. Is it only bottles that must be stamped? Or do bottles filled from a cask on tap need to be stamped any more than a bucket or pitcher? ANSWER. In regulation No. 19735, dated July 20, the Commissioner of Internal Revenue distinctly answers that part of the question as to refilling a bottle with wine, when the bottle is presented by the customer. It must be stamped every time it is refilled. The question as to a pitcher or jug is fully met in a regula tion of September, 1898, from which we quote the following: "Demijohns and jugs containing wine exposed for sale, which are manifestly substitutes for uncovered bottles, will be considered as bottles, and must be stamped accordingly. The fact that small bottles used for containing wine are surrounded with wickerwork or are composed of earthen or stoneware with a handle attached will not relieve them from liability to the tax imposed by the new law; but jugs or demijohns containing a gallon or upward, filled from packages containing wines in bulk for delivery as orders arise, would not be considered as bottles within the meaning of the law. In general, it may be said that kettles, pitchers, demijohns, and jugs containing wine do not require stamps, unless these vessels are of such size and material as show them to be used as bottles or substitutes for bottles for the purpose of evading the tax, in which case they must be stamped." WHAT IS DIVIDING DATE BETWEEN FALL AND SPRING INSPECTION? QUESTION. We bought ten barrels of whisky designated as Fall '93; when gauger's certificate was received we found that the inspection was December 14. We have refused the goods, claiming that they were not what is termed fall inspection. ANSWER. The rule is that all goods made in December, even on the last day of the month, are classed as fall goods, while those made in January, even on the first of the month, are termed spring. This does not, of course, indicate that the former are any better than the latter, but they are so named on account of the season of inspection, and sometimes the inspection enables December goods to command a little higher rate. IS SELLER OBLIGED TO NOTIFY BUYER GOODS ARE UNINSURED? QUESTION. In a sale of bonded goods, where the seller fails to notify the buyer that goods are uninsured and at owner's risk, and there is a loss by fire, has the buyer good cause for damages against the seller on account of the failure to notify? ANSWER. Purchaser takes goods at his own risk, and seller has neither legal nor moral right to pay for insurance on goods with whose possession he has parted, and it is merely a matter of courtesy to notify as to insurance. Even if seller has had insurance, that can be transferred to buyer only by notice to and the consent of the insurance company, and buyer would be entitled to reimburse seller for insurance. WHO IS LIABLE FOR STORAGE?— QUESTION. When a distiller sells whisky in bond, and nothing is said as to the storage, is not the buyer liable for it? ANSWER. If no stipulation is made either verbally or otherwise, the buyer is certainly liable for storage from the time of the purchase. When the distiller sells his product, it is the privilege of the buyer to remove it from his warehouse. If he choose to leave it, the distiller becomes merely the warehouseman, and as such he is clearly entitled to storage the same as any other warehouseman. While some distillers may make a concession of free storage for a certain period, this is not by any means a universal custom. Hence such exceptional terms must be expressly stipulated, and unless this is done, the buyer is liable for storage from time of purchase. LIABILITY FOR SPECIAL TAX ON SALE OF WHISKY IN BOND. QUESTION. Suppose I buy fifty barrels of whisky in bond on speculation (I am a retail dealer). Can I sell whisky in bond without taking out special wholesale tax, and how? ANSWER. The law does not prevent anyone buying goods, but regards the sale of warehouse receipt in the same light as whisky proper, and such a sale carries with it the liability for wholesale tax. In order to dispose of the warehouse receipts you must give them to some licensed wholesale dealer or broker to sell for you on commission. MUST BUYER OR SELLER PAY DRAYAGE? QUESTION. I have bought 25 barrels of tax paid whisky stored with the distiller in a free warehouse. I find quite a charge by the distiller for transportation for drayage to the railroad seven miles distant. I claim that in stating a price it is generally under stood F. O. B. Am I right? ANSWER. No. Drayage to depot is a part of the transportation, and as such must be borne by you the same as freight. Some distillers consider it incumbent on them to deliver goods F. O. B., but this is not obligatory. CAN RETAILER PUT UP SIGN AS WHOLESALE DEALER?QUESTION. John Smith commenced business on the 1st day of May, selling liquors at the bar and in quantities under 5 gallons. The sign in front of his place of business reads: "John Smith, Wholesale and Retail Dealer in Wines and Liquors." Now, does the fact that the word "wholesale" appears on his sign make him liable to pay the special tax of a wholesale dealer, and can payment of such tax be enforced by the revenue department on this ground? ANSWER. No. The mere hanging out of a sign, which is in its very nature mere advertising, does not constitute him a wholesale dealer. There must be proof of wholesale transaction. Still it is against the law, for Sec. 3279 R. S. reads as follows: "And every person, other than a rectifier or wholesale liquor dealer who has paid the special tax, or a distiller who has given bond as required by law, who puts up or keeps up the sign required by this section, or any sign indicating that he may lawfully carry on the business of a distiller, rectifier or wholesale liquor dealer, shall forfeit and pay one thousand dollars, and shal be imprisoned not less than one month nor more than months." HOW IS TAX ON REIMPORTED WHISKY DETERMINED?— QUESTION. six Please inform us what are the government regulations in regard to whisky and spirits reimported. Is the tax payable on the actual contents after regauge? ANSWER. Upon reimportation the tax is collected only on what is in the packages. When the goods are below proof it is collected upon wine gallons and when above proof on proof gallons. If there are but five gallons in a barrel the tax payable is on only that amount. LIABILITY OF SALESMAN TO SPECIAL TAX.— QUESTION. Can a man traveling for a liquor house have goods shipped to himself and give written order to customer to receive goods from railroad, if he is either on salary or commission? ANSWER. He cannot without liability to special tax. QUESTION. Can a man have a certain price fixed on goods, and all he gets over and above shall be his commission or salary, he guaranteeing payment of bills, and in this case could he order goods shipped to his name and give customers order to receive same from railroad? ANSWER. He can take orders for goods under the conditions of the first part of this question, without liability to special tax, but the last conditions would make him liable for special tax. QUESTION. If goods are shipped to party and he refuses to receive same, can agent of house transfer them to another party? Could he pay expressman and personally attend to transfer or delivery of goods in this case? ANSWER. Not without paying special tax. QUESTION. Can a man have a fixed share of the profits to be his commission or salary, or to be equal to his commission or salary? ANSWER. Yes, provided he does not have possession of the goods; simply takes orders for them. MUST WHISKY BE TAX-PAID IF OUTAGE IS EXCESSIVE?— QUESTION. Please advise us if whisky regauged at the end of four years and showing a loss of fourteen gallons-five gallons over government allowance has to be tax-paid at that time. Also, if when tax-paid it could remain in government warehouse ANSWER. If the outage on gauging exceeds the government allowance by 100 per cent then it is regarded as excessive, and the package must be tax-paid, and taken out of bond, allowance being made for the normal outage allowed by law. In your case, the outage being under 18 gallons, the matter will be referred to the commissioner, if the collector thinks there is anything in the condition of the warehouse or in the cooperage that demands action on the part of the government to protect their lien for taxes. Unless this is the case, your goods can remain for the full bonded period if you desire. In all cases where the government forces payment of tax, the goods must be taken from bonded warehouse. CAN PART OF BARREL BE RETRANSFERRED FROM RETAIL TO WHOLESALE DEALER?— QUESTION. No. 1. Can a wholesale dealer, after entering a barrel of whisky in Form 52 B as "Retail," again enter the same barrel in Form 52 A, and then again dispose of the barrel to another party and again enter the barrel in Form 52 B as disposed of to that party; or,, in other words, suppose a wholesale dealer has only one barrel of whisky in his store; he cannot dispose of the whole barrel, and he concluded to retail it out; he accordingly enters the barrel in Form 52 B as "Retail;" after he sold, say, five gallons, he has a chance to sell the remaining contents of that barrel. He says to the party, as far as I understand the law, I cannot sell you the contents of the barrel as a whole, but I can give you four and one-half gallons at a time. This the man refuses. Now, is the law so conducted that I must lose the sale of that whisky and deprive me of making a living, or can I enter the barrel again in Form 52 A and afterward enter it in Form 52 B to that party? No. 2. Secondly, suppose a barrel of whisky was originally 101 per cent.; after a lapse of three or more years it arrives in our store with a regauge, and find it rose to 110 per cent.; can we reduce the whisky in the barrel to its original per cent. without permission from the Internal Revenue Department, notice having been given to the Collector on Form 262 in presence of gauger? No. 3. Thirdly, can we reduce whisky in the barrel from its original per cent without the permission of the Internal Revenue Department? ANSWER. No. 1. When a party carries on the business of wholesale and retail liquor-dealer on the same premises, he may take credit on this account for spirits disposed of at retail, which he has entered as received, by |