ing payments for information and detection of such violations, fifty thousand dollars; and the Commissioner of Internal Revenue shall make a detailed statement to Congress once in each year as to how he has expended this sum, and also a detailed statement of all miscellaneous expenditures in the Bureau of Internal Revenue for which appropriation is made in this act.

This is the only section under which any reward for information can be paid to informers. All internal revenue officers or employees are excluded from any reward for information of the violation of internal revenue laws. Moieties to officers were repealed by Sec. 39, act June 6, 1872 (17 Stat. 256).

The regulations in regard to payment of rewards to informers are contained in Circular No. 99, Revised, following:

Rewards for Information leading to the Detection and Punishment of Persons violating Internal Revenue Laws.

1883.

DEPARTMENT No. 130.
INTERNAL REVENUE.

TREASURY DEPARTMENT, OFFICE OF INTERNAL REVENUE, WASHINGTON, Nov. 6, 1883.

Under and by virtue of the provisions of the three thousand four hundred and sixty-third section of the Revised Statutes of the United States, as enacted June 22, 1874, which authorizes the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, to pay such sums as he may deem necessary, not exceeding in the aggregate the sum appropriated therefor, for detecting and bringing to trial and punishment persons guilty of violating the internal revenue laws, or conniving at violations of the same, in cases where such expenses are not otherwise provided for by law, I do hereby, with the approval of the Secretary of the Treasury, offer for information given by persons other than officers of internal revenue, or persons appointed or employed in, or acting in connection with, the internal rev

enue service, that shall lead to the detection and punishment of persons guilty of violating the internal revenue laws, or conniving at the same, whether such punishment be by fine or other pecuniary mulet or penalty, or by forfeiture of property, such reward as the Commissioner of Internal Revenue may deem suitable, but in no case exceeding ten per centum of the net amount of the fines, penalties, forfeitures, and taxes which, by reason of said information, shall be recovered by suit or otherwise and actually paid to the United States, or of any sum which shall be accepted in compromise by the Commissioner of Internal Revenue and received by the United States: Provided, That nothing herein contained is intended, or shall be held, to refer to information concerning taxes on legacies and successions, under acts in force prior to October 1, 1870, or under Sec. 3438 of the Revised Statutes of the United States; and so much of circulars heretofore issued as offers a reward for information concerning such taxes is hereby revoked: And provided further, That nothing herein contained is intended, or shall be held, to relate to information concerning illicit distillation of spirits in the States of North Carolina, South Carolina, Georgia, Alabama, Mississippi, Tennessee, Arkansas, Missouri, Kentucky, Virginia, and West Virginia, other and more ef fective methods for the suppression of illicit distillation in those localities being now in operation there.

The reward hereby offered will be paid in cases which are settled in court, upon the duly authenticated certificate of the United States district attorney having charge of the case or cases that the person claiming is the person who furnished the information which led to the detection and punishment of the violations of law for which the recovery was had, and upon such other and additional proofs as the commissioner may require.

In cases in which property seized, being of the appraised value of $500 or less, is disposed of by the collector under the provisions of Sec. 3460 of the Revised Statutes, the certificate of the collector to that fact will be received, and also to the fact that the person claiming the reward is the per

son who furnished the information leading to such a forfeiture.

The rewards hereby offered must be understood to be limited in their aggregate to the sum appropriated therefor.

This offer will apply to cases in which the information has been or shall be given on or after the 15th day of November, 1883.

Approved:

H. F. FRENCH,

WALTER EVANS,

Commissioner.

Acting Secretary of the Treasury.

Construction of Circular 99. 15 Opinions Atty.-Gen. 88. Commissioner authorized to offer a reward for recovery of taxes evaded. 15 Opinions Atty.-Gen. 133.

Authority of commissioner to bind the government by promising to pay for information. Informers who receive less than ten per cent cannot recover the difference in the court of claims. Green v. United States, 17 Court of Claims, 238.

Right of commissioner and secretary to fix the amount of reward. E. D. Crane v. United States, 23 Court of Claims, 94.

Purchasing for the government goods subject to tax.

SEC. 3464. The privilege of purchasing supplies of goods imported from foreign countries for the use of the United States, duty free, which now does or hereafter shall exist by provision of law, shall be extended, under such regulations as the Secretary of the Treasury may prescribe, to all articles of domestic production which are subject to tax by the provisions of this title.

For regulations for the withdrawal of distilled spirits from bond for the use of the United States free of tax, see Int. Rev. Reg., Series 7, No. 7, Revised, p. 178 et seq.

SEC. 3465. An act entitled
An act entitled "an act further to

of certain rev

enue acts.

provide for the collection of duties on imports," passed March second, eighteen hundred and thirty- Construction three, shall not be so construed as to apply to cases arising under an act entitled "an act to provide internal revenue to support the government, to pay interest on the public debt, and for other purposes," passed June thirtieth, eighteen hundred and sixty-four, or any act in addition thereto or in amendment thereof, nor to any case in which the validity or interpretation of said act or acts shall be in issue.

See the cases of Hornthall v. The Collector, 9 Wall. 560; The Assessors v. Osborne, 9 Wall. 567.

to defraud.

SEC. 5440, as amended by act May 17, 1879. If two or more persons conspire either to commit any Conspiracy offense against the United States, or to defraud the United States in any manner or for any purpose, and one or more of such parties do any act to effect the object of the conspiracy, all the parties to such conspiracy shall be liable to a penalty of not more than ten thousand dollars, or to imprisonment for not more than two years, or to both fine and imprisonment, in the discretion of the court.

This section originally formed part of an internal revenue act (Sec. 30, act March 2, 1867), and many prosecutions for violations of the internal revenue laws have been conducted thereunder.

Requisites of an indictment for conspiracy to defraud United States under provisions of Sec. 5440, considered. United States v. J. A. Boyden et al., Circuit Court Mass., July, 1868, 1 Lowell, 266.

In an indictment based on Sec. 30, act March 2, 1867 (now Sec. 5440 R. S.), it is sufficient to aver that there was a conspiracy to defraud the United States of taxes legally due, and that in pursuance of such conspiracy the defendant

committed a stated overt act. It is not necessary to aver the specific mode agreed upon by which the conspiracy was to be carried out. Allegations of the overt act are not required to be as full and minute, in an indictment for conspiracy, as in an indictment for fraud without any charge of conspiracy. United States v. Daniel G. Dustin, Circuit Court S. D. Ohio, October Term, 1869, 2 Bond, 332.

In an indictment for conspiracy to defraud the United States under Sec. 30, act March 2, 1867 (now Sec. 5440 R. S.), there must be proof satisfactory to the jury, first, that there was a conspiracy to which the defendants were parties substantially as alleged; and, second, of the overt acts averred. Effect of variance between allegation and proof. Definition of conspiracy and proof required. Circumstantial evidence. Testimony of accomplice to be received with great caution, and, unless sustained and corroborated in material points by credible witnesses, should be wholly rejected. Value of evidence of defendant's good character. United States v. George Smith et al., Circuit Court S. D. Ohio, October Term, 1869, 2 Bond, 323.

Conspiracy to defraud the revenue. United States v. Rindskopf, 6 Bissell, 259; United States v. Nunnemacher, 7 Bissell, 111; United States v. Goldberg, 7 Bissell, 175.

History of the conspiracy to defraud the revenue of the tax on spirits in St. Louis from 1871 to 1875. United States v. McKee, 3 Dillon, 546; United States v. Babcock, 3 Dillon, 587.

Requisites of indictment for conspiracy to defraud. United States v. Ulrici, 3 Dillon, 532.

Officer cannot be joined with private persons in an indictment for conspiracy. United States v. McDonald, 543.