can not transfer the same unstamped to other producers to be
sold by them. (Vol. 1, Treas. Dec. (1898), No. 18943.)

Jumbo cigars.-A cigar-shaped bundle of tobacco of an ex-
tremely large size was classified as manufactured tobacco. It
was in evidence that it was used as an ornament in cigar deal-
ers' windows, but that it could be smoked as a cigar. Held, that
the fact of its capability of being smoked does not altogether
determine its character, and, if the principal utility of the arti-
cle is for some other purpose, the article is to be classed as manu-
factured tobacco; if for the ordinary purposes of a cigar, as
such. (D'Estrinoz v. Gerker, Collector, 1890, 43 Fed. Rep., 285.)
A qualified manufacturer of tobacco is not permitted to sell
cut or granulated tobacco in bulk as material, and without pay-
ment of tax, to another manufacturer, although the latter may
intend to properly pack and stamp it as required by the statute.
All manufactured tobacco, whether cut, granulated, or scraps,
the process of manufacture of which has been completed, is not
subject to sale and transfer by one manufacturer to another, but
must be properly packed, labeled, and stamped before removal
from the place of manufacture. (Vol. 2, Treas. Dec. (1899), No.
21451.)

Manufacturers of tobacco or cigars may sell tobacco stems in their natural condition to other manufacturers, to qualified dealers in leaf tobacco, or to persons who buy tobacco stems in their natural condition exclusively for export, the purchaser of the stems not being required to qualify as a manufacturer of tobacco nor to export in bond the stems purchased from manufacturers. (Vol. 2, Treas. Dec. (1899), No. 21518.)

SEC. 3363, as amended by section 31, act of October 1, 1890 (26 Stat., 567). No manufactured tobacco shall be sold or offered for sale unless put up in packages and stamped as prescribed in this chapter, except at retail by retail dealers from the packages authorized by section thirty-three hundred and sixtytwo of the Revised Statutes; and every person who sells or offers for sale any snuff or any kind of manufactured tobacco snuff to be sold not so put up in packages and stamped shall be fined not scribed packless than five hundred dollars nor more than five thousand ages; penalty; dollars, and imprisoned not less than six months nor more than two years.

This amendment changes the words "from wooden packages stamped as provided in this chapter" in the original act to the words italicized above.

(United States v. Veazie, 6 Fed. Rep., 867; United States v. Jenkinson, 15 Fed. Rep., 903).

SEC. 3364, as amended by section 5, act of March 3, 1883 (22 Stat., 488). Every manufacturer of tobacco or snuff shall, in addition to all other requirements of this title relating to tobacco, print on each package, or securely affix, by pasting, on each package containing tobacco or snuff manufactured by or for him, a label, on which shall be printed * the number of the manufactory, the district and State in which it is situated, and these words:

*

NOTICE.-The manfacturer of this tobacco has complied with all requirements of law. Every person is cautioned, under the penalties of law, not to use this package for tobacco again.

Tobacco and

only in pre

exception.

Caution label.

Every manufacturer of tobacco who neglects to print on Penalty. or affix such label to any package containing tobacco made by or for him, or sold or offered for sale by or for him, and every person who removes any such label so affixed from any such package, shall be fined fifty dollars for each package in respect to which such offense shall be committed.

10228-16

Purchasing tobacco not brand

Section 5 of the act of March 3, 1883, was a reenactment of section 3364, simply omitting the words "the proprietor's or manufacturer's name."

Manufacturers who comply with the regulations, series 7, No. 8, revised, may prepare and put up their snuff in glass tumblers or drinking glasses containing 3 ounces or 6 ounces, respectively, the glasses to be provided with metal covers, each glass to have affixed thereon an internal-revenue stamp showing the quantity of snuff contained therein, the stamp to be properly canceled and so affixed as to securely seal the package; and to each such package must be affixed the caution-notice label required by section 3364, R. S., showing the number of manufactory, district, and State in which situated, and the caution notice in form prescribed by the statute. (Vol. 2, Treas. Dec. (1899), No. 21541.)

Manufacturers not permitted to print caution notice directly upon the package by use of a rubber stamp, such printed label not approved as a substitute for the caution notice required by regulations. (Vol. 1, Treas. Dec. (1898), No. 19085.)

SEC. 3365. (Obsolete.) factured before July 20, 1868.

Relative to snuff and smoking tobacco manu

SEC. 3366. Every person who purchases, or receives for ed or stamped; sale, any manufactured tobacco or snuff which has not been branded or stamped according to law, shall be liable to a penalty of fifty dollars for each offense.

penalty.

Buyingtobacco

from a manufac

Congress has as much power to say that the tax shall be paid in a particular way-that is, by stamps-as it has to impose any tax, and all its requirements must be complied with. (United States v. Keyes, 10 Fed. Rep., 876.)

SEC. 3367. Every person who purchases, or receives for turer who has not sale, any manufactured tobacco or snuff from any manufacpaid special tax. turer who has not paid the special tax, shall be liable for

Tax on tobacco and snuff.

Tax 12 cents per pound on to

each offense to a penalty of one hundred dollars, and to a forfeiture of all the articles aforesaid so purchased or received, or of the full value thereof.

SEC. 3368, as amended by section 30, act of October 1, 1890 (26 Stat., 619), and sec. 3. act of June 13, 1898 (30 Stat., 448). Upon tobacco and snuff manufactured and sold, or removed for consumption or use, there shall be levied and collected the following taxes:

On snuff, manufactured of tobacco or any substitute for tobacco, ground, dry, damp, pickled, scented, or otherwise, of all descriptions, when prepared for use, a tax of twelve cents per pound. And snuff-flour, when sold, or removed for use or consumption, shall be taxed as snuff, and shall be put up in packages and stamped in the same manner as snuff.

On all chewing and smoking tobacco, fine-cut, cavendish, plug, or twist, cut or granulated, of every description; on tobacco twisted by hand or reduced into a condition to be consumed, or in any manner other than the ordinary mode of drying and curing, prepared for sale or consumption, even if prepared without the use of any machine or instru ment, and without being pressed or sweetened; and on all fine-cut shorts and refuse scraps, clippings, cuttings, and sweepings of tobacco, a tax of twelve cents per pound.

[SEC. 3368a.] Section 3, act of June 13, 1898 (30 Stat., 448). That bacco and snuff. there shall, in lieu of the tax now imposed by law, be levied

and collected a tax of twelve cents per pound upon all tobacco and snuff, however prepared, manufactured, and sold, or removed for consumption or sale; and upon cigars and cigarettes which shall be manufactured and sold, or removed for consumption or sale, there shall be levied and collected the following taxes, to be paid by the manufacturer thereof, namely, a tax of three dollars and sixty cents per thousand Rate of tax on on cigars of all descriptions made of tobacco, or any sub-cigars. stitute therefor, and weighing more than three pounds per thousand, and of one dollar per thousand on cigars made of tobacco or any substitute therefor, weighing not more than three pounds per thousand; and a tax of three dollars and sixty cents per thousand on cigarettes made of tobacco or any substitute therefor, and weighing more than three pounds per thousand; and one dollar and fifty cents per thousand on cigarettes made of tobacco or any substitute therefor, and weighing not more than three pounds per thousand: Provided, That in lieu of the two, three, and four-ounce packages Size of pack. of tobacco and snuff now authorized by law, there may be packages thereof containing one and two-thirds ounces, two and one-half ounces, and three and one-third ounces, respectively, and in addition to packages now authorized by law, there may be packages containing one ounce of smoking tobacco.

ages.

Additional paragraph of same section relating to an additional tax on tobacco, snuff, and cigars stamped after April 14 and removed from the factory or custom-house before June 14, 1898, is as follows:

And there shall also be assessed and collected, with the exceptions hereinafter in this section provided for, upon all the articles enumerated in this section which were manufactured, imported, and removed from factory or custom-house before the passage of this act bearing tax stamps affixed to such articles for the payment of the taxes thereon, and canceled subsequent to April 14, 1898, and which articles were at the time of the passage of this act held and intended for sale by any person, a tax equal to one-half the difference between the tax already paid on such articles at the time of removal from the factory or custom-house and the tax levied in this act upon such articles. Every person having on the day succeeding the date of the passage of this act any of the above-described articles on hand for sale in excess of 1,000 pounds of manufactured tobacco and 20,000 cigars or cigarettes, and which have been removed from the factory where produced or the custom-house through which imported, bearing the rate of tax payable thereon at the time of such removal, shall make a full and true return under oath in duplicate of the quantity thereof in pounds as to the tobacco and snuff, and in thousands as to the cigars and cigarettes so held on that day, in such form and under such regulations as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may prescribe. Such returns shall be made and delivered to the collector or deputy collector for the proper internal revenue district within thirty days after the passage of this act. One of said returns shall be retained by the collector and the other forwarded to the Commissioner of Internal Revenue, together with the assessment list for the month in which the return is received, and the Commissioner of Internal Revenue shall assess and collect the taxes found to be due as other taxes not paid by stamps are assessed and collected.

The acts relating to the tax on manufactured tobacco and snuff went into operation immediately on their passage, except the following: Act of March 3, 1865, took effect April 1, 1865; act of July 13, 1866, took effect August 1, 1866; act of June 6, 1872, took effect July 1, 1872; act of March 1, 1879, took effect May 1, 1879; act of March 3, 1883, took effect May 1, 1883. (Rep. Com. Int. Rev., 1888, p. 136.) Act of October 1, 1890, took effect January 1, 1891. Act of June 13, 1898, took effect June 14, 1898, so far as it related to taxes imposed on tobacco, snuff, cigars, and cigarettes.

The tax on manufactured tobacco and snuff first required to be paid by stamps. (Act of July 20, 1868.)

Stamps not of money value were required to be affixed by inspectors previous to that time. (Act of March 3, 1865.)

The term granulated tobacco not synonymous with snuff. (Venable v. Richards, 105 U. S., 636; 28 Int. Rev. Rec., 162; affirming 1 Hughes, 326; 22 Int. Rev. Rec., 299.)

Tobacco stamped and removed in forenoon of March 3, 1875, while the act of that date which increased the tax to 24 cents per pound was signed in the afternoon. The increase of tax did not apply in that case. (Burgess v. Salmon, 97 U. S., 381; 25 Int. Rev. Rec., 31; affirming 1 Hughes, 356; 21 Int. Rev. Rec.,

Manufactured tobacco shipped in bond from the manufactory and stored in an export bonded warehouse on the 14th of June, 1872, was subject to the tax of 32 cents per pound prescribed by the internal revenue act of July 20, 1868. (Jones . Blackwell, 100 U. S., 599; 26 Int. Rev. Rec., 114; 14 Op. Atty. Gen., 110; 16 Int. Rev. Rec., 77.)

Record Form No. 47.

Stamping for

SEC. 3369. The Commissioner of Internal Revenue shall Stamps, how prepared, furcause to be prepared suitable and special stamps for the nished, and sold. payment of the tax on tobacco and snuff, which shall indicate the weight and class of the article on which payment is to be made, and shall be affixed and canceled in the mode prescribed by the Commissioner of Internal Revenue, and stamps when used on any wooden package shall be canceled by sinking a portion of the same into the wood with a steel die, and also such export-stamps as are required by law. Such stamps shall be furnished to the collectors requiring them, and each collector shall keep at all times a supply equal in amount to three months' sale thereof, and shall sell the same only to the manufacturers of tobacco and snuff in their respective districts who have given bonds as required by law, and to owners or consignees of tobacco or snuff, upon the requisition of the proper custom-house officer having the custody of such tobacco or snuff; and to persons required by law to affix the same to tobacco or snuff on hand on the first day of January, eighteen hundred and sixty nine. And every collector shall keep an account of the number, amount, and denominate values of stamps sold by him to each manufacturer or other person aforesaid: Provided, That such stamps as may be required to stamp feited tobacco, tobacco, snuff, or cigars, sold under distraint by any col- snuff, or cigars. lector of internal revenue, or for stamping any tobacco, snuff, or cigars which may have been abandoned, condemned, or forfeited, and sold by order of court or of any Government officer for the benefit of the United States, may, under such rules and regulations as the Commissioner of Internal Revenue shall prescribe, be used by the collector making such sale, or furnished by a collector to a United States marshal, or to any other Government officer making such sale for the benefit of the United States, without making payment for said stamps so used or delivered; and any revenue collector using or furnishing stamps in manner as aforesaid, on presenting vouchers satisfactory to the Commissioner of Internal Revenue, shall be allowed credit for the same in settling his stamp account with the Department: And provided further, That in case it shall appear that any abandoned, condemned, or forfeited tobacco, snuff, or cigars, when offered for sale, will not bring a price equal to the tax due and payable thereon, such goods shall not be sold for consumption in the United States; and upon application made to the Commissioner of Internal Revenue, he is authorized and directed to order the destruction of such tobacco, snuff, or cigars by the officer in whose custody and control the same may be at the time, and in such manner and under such regulations as the Commissioner of Internal Revenue may prescribe.

As to power to establish, alter, or change stamps, etc., see sections 3445 and 3446 as amended, p. 339.

Destruction of bacco and cigars.

unsalable to