papers, handbills, circulars, or otherwise, apart from the packages, must point the reader to this particular medicine.

Mr. Bouvier defines "advertisement" to mean "a notice published in handbills or a newspaper." Hence to advertise would mean to give publicity through the medium of newspapers, handbills, circulars, or some similar way, so as to call particular attention to a subject-matter, in order that people may identify it from the description given in the advertisement.

This line of reasoning, which, I think, is sustained by the wording of the act, leads to the conclusion that it was the purpose of the Congress to levy the tax under the provision of the law referred to upon pro prietary medicinal articles, or such as assume the character before the public of proprietary, patent, or trade mark articles, and such medicinal articles as go from the hands of the proprietor, compounder, or manufacturer, so put up in packages as to comport with the manner and style of patent, trade-mark, or proprietary medicines in general; or where medicinal articles, though not put up in the usual style of patent, trademark, or proprietary articles in general, still have the characteristics of patent, trade-mark, or proprietary articles to the extent that they are advertised on the packages, or otherwise as specifics or remedies for certain ailments, or have claims to special merit or advantage in mode of preparation, quality, use, or effect. I am borne out in this conclusion by the fact that when we turn to Schedule B, where the manner of paying the tax upon these articles is provided, we find that in the first clause of Schedule B the subjects of taxation are described in these words: "Medicinal proprietary articles and preparations." This description is not general so as to include medicinal articles and preparations which may bear a technical or pharmaceutical name, indicative of the disease for which they are used, in order to classify them and distinguish them from other medicines, but is confined to such as are "proprietary." Then, when we come to consider the manner in which the tax is estimated, we see that the Congress still had in mind packages, packets, boxes, bottles, pots, etc., each of which must have a retail price or value attached to it so as to determine the amount of the stamp to be placed upon it.

Now, to draw the distinction more clearly between medicinal articles or preparations which I hold to be taxable under the provisions of the law and those that are not, I will call attention to a class of preparations or medicines, samples of which have been filed with me for examination, and which, in my opinion, are not taxable. They are articles which are put up in bottles, phials, or other packages, more particularly for the use of physicians and pharmacists. They are such articles as antistreptococcic serum, antitetanic serum, antidiphtheritic serum, and many others of like character. These articles are not put up in the manner or style of patent, trade-mark, or proprietary medicines in general, nor are they advertised to the public upon the package or otherwise as specifics or remedies for particular diseases, or as claiming special merit, etc. The names upon the bottles, phials, or other packages containing these preparations are simply medicinal or pharmaceutical designations used to indicate the class of medicines to which they belong, and are for the guidance of physicians and pharmacists, and under their directions to be used by the consumer. I also include under this head such medicinal articles as Pil. Migraine Comp., Pil. Neuralgic, Compressed Tablets Antimalarial, and medicines of similar classes put up in quantities in bottles or other packages for the use of physicians, druggists, and pharmacists, through whom they are dealt out

to consumers as prepared prescriptions. These articles have the technical medical name upon the bottle or other package and also the formula by which they are prepared. There is no exclusive proprietorship or right of manufacture claimed in them, but any pharmacist or manufacturing druggist has the right to make them after the formula given, and there is no retail price or value stated on the bottle or other package containing them.

It might make the distinction still more plain to say that the class of medicines which, in my opinion, are taxable under the provisions of the law, are such as I have described above, which go to the consumer in the unbroken package in which they are put up by the proprietor, manufacturer, or compounder, with name, disease, and directions for use without the intervention of a prescription of a physician or pharmacist. Whilst, on the other hand, the provisions of the act do not reach such medicinal articles or preparations as are put up under pharmaceutical or classifying names for the use of physicians in their practice or of pharmacists or druggists in their trade.

Calomel is a medicinal article or remedy compounded (I believe) by a formula from mercury, sulphuric acid, chloride of sodium, and distilled water. It is a well-known remedy for certain diseases, and special merit is claimed for it in the treatment of diseases like bilious fevers, hepatitis, jaundice, bilious and painter's colic, and other affections attended with congestion of the portal system or torpidity of the hepatic function. This medicinal article is put up in quantities by the manufacturers after the prescribed formula, and is sold to physicians, pharmacists and druggists, and the latter in turn prescribe it for the afflicted and deal it out in quantities to suit the emergency. Now, calomel is not taxable under the provisions of the war-revenue act, for the reason that it does not come within the description of articles declared to be subject to tax under the provisions of the act. In the first place, it is not put up in the manner and style of patent, trade-mark, or proprietary medicines in general ; and, in the second place, it is not advertised on the package in which it is put up as contemplated by the act; and even if the manufacturer or compounder were to put on the inclosure containing the calomel the additional words "antibilious" or "antihepatitis," it would, in my opinion, only have the effect to designate more particularly the class of medicines to which it belongs, and not to advertise it as a specific or remedy for a particular disease. I have given this illustration, and used the name of a well-known medicinal article, to make the distinction which I have attempted to draw the more easily understood. Respectfully,

JAMES E. BOYD,

Assistant Attorney-General. Approved :

JOHN W. GRIGGS, Attorney-General.

(20461.)

Legacy taxes. "The tax on legacies should be deducted from the individual legacies, but is a lien upon

the entire property of the decedent.

TREASURY DEPARTMENT,
OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., December 23, 1898. SIR: This office is in receipt of a letter from Smith & Weatherly, attorneys in your city, under date of October 24 (who have to-day been

referred to you), asking certain questions relative to legacy tax. In reply, you will please inform them as follows:

The whole amount of personal property, before deducting debts, expenses, or shares to widow or husband, determines the rate of taxation. The tax on legacies should be deducted from the individual legacies, but is a lien upon the entire property of the decedent. The only legacies or distributive shares exempt are those passing to the widow or husband.

If an estate valued at $188,000 had $100,000 debts charged against it, thus reducing the amount subject to distribution to less than $100,000, the tax on the legacies must be paid as of an estate exceeding $100,000 in value and not exceeding $500,000.

Legacy tax is not payable until the legacy is payable, and the legacy must not be paid until the tax shall have been paid.

Respectfully, yours,

N. B. SCOTT, Commissioner. Mr. J. H. BINGHAM, Collector Internal Revenue, Birmingham, Ala.

(20462.)

Adhesive documentary and proprietary stamps-Amending regulations as to cancellation.

[Circular No. 207.—Int. Rev. No. 520.]

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., December 23, 1898.

Existing regulations are hereby amended so as to require that upon each adhesive documentary or proprietary stamp used or affixed after January 1, 1899, there shall, in addition to the initials of the person using the same and the year in which used, also appear the month and day of the month when such stamp was used or affixed. The month may be expressed by numerals-for instance, on a stamp used on January 12, 1899, the date may be written or stamped 1/12/99.

Approved :

N. B. SCOTT, Commissioner.

O. L. SPAULDING, Acting Secretary of the Treasury.

(20463.)

Stamp tax-Checks.

Checks used in lieu of promissory notes must be stamped at the rate of 2 cents per $100. TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., December 27, 1898.

SIR: This office has been informed that some of the banks in New York City are loaning money to parties, taking as an evidence of the

debt an uncertified check for the amount advanced, the loan, of course, being secured by collateral. This is, certainly, an evasion of the law, and you are hereby instructed to send a letter to the Clearing House Association of New York City, asking them to advise the members thereof that the method above described must be discontinued.

A check used as a promissory note is an acknowledgment of a debt, and must be stamped accordingly-that is, at the rate of 2 cents per $100 or fraction thereof, and if the collateral pledged as security for such a debt is pledged specifically for this one loan, then the pledge of collateral is subject to taxation on the amount of the loan in excess of $1,000 at the rate provided in the paragraph of Schedule A relating to pledge or mortgage. Respectfully, yours,

N. B. SCOTT, Commissioner. Mr. CHARLES H. TREAT, Collector Second District, New York, N.Y.

(20464.)

Opinion of the Attorney-General on the question of the liability of retail dealers to the additional tax of $1 a barrel on fermented malt liquor bought by them prior to June 14, 1898, and held in stock by them on that date.

TREASURY DEPARTMENT,
OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., December 28, 1898. The appended opinion of the honorable Attorney-General is hereby promulgated for the information and guidance of all officers of the Internal Revenue Service.

N. B. SCOTT, Commissioner.

DEPARTMENT OF JUSTICE,

Washington, D. C., December 27, 1898. SIR: Prior to the passage of the so-called war-revenue act of June 13, 1898 (30 Stat., 448), which took effect on June 14, 1898, the day next succeeding its passage (section 51), the tax upon fermented liquors was fixed at $1 for every barrel, and was required to be paid by the brewer, the statute (section 3339, Revised Statutes) reading :

“There shall be paid on all beer, lager-beer, ale, porter and other similar fermented liquors, brewed or manufactured and sold, or removed for consumption or sale, within the United States, by whatever name such liquors may be called, a tax of one dollar for every barrel containing not more than thirty-one gallons; and at a like rate for any other quantity or for any fractional part of a barrel.

“In estimating and computing such tax, the fractional parts of a barrel shall be, etc. (describing them). The said tax shall be paid by the owner, agent, or superintendent of the brewery or premises in which such fermented liquors are made, and in the manner and at the time hereinafter specified."

The war-revenue act of July 13, 1898, provided in its first section as follows:

"That there shall be paid, in lieu of the tax of one dollar now imposed by law, a tax of two dollars on all beer, lager beer, ale, porter, and other similar fermented liquors, brewed or manufactured and sold, or stored in warehouse, or removed for consumption or sale, within the United States, by whatever name such liquors may be called, for every barrel containing not more than thirty-one gallons; and at a like rate for any other quantity or for the fractional parts of a barrel authorized and defined by law. And section thirty-three hundred and thirty-nine of the Revised Statutes is hereby amended accordingly: Provided, That a discount of seven and one-half per centum shall be allowed upon all sales by collectors to brewers of the stamps provided for the payment of said tax: Provided, further, That the additional tax imposed in this section on all fermented liquors stored in warehouse to which a stamp had been affixed shall be assessed and collected in the manner now provided by law for the collection of taxes not paid by stamps."

In view of the changes thus made in the law taxing the manufacture and sale of fermented liquors, and more especially in view of the provision requiring the tax to be paid on all fermented liquors "brewed or manufactured and sold, or stored in warehouse, or removed for consumption or sale," you submit the question, Must retail liquor dealers pay the additional tax of $1 on fermented liquors purchased by them prior to June 14, 1898, and held in stock by them on that date?

The first section of the war-revenue act, after increasing the tax from $1 to $2 per barrel, and after making it applicable to all fermented liquors manufactured and stored in warehouse, as well as to fermented liquors manufactured and sold, or removed for consumption or sale, provides that "section thirty-three hundred and thirty-nine of the Revised Statutes is hereby amended accordingly," and then attaches the two provisos, the first allowing a discount of 7 per cent, and the second providing for the collection of the additional tax on liquors. stored in warehouse by assessment. This section, therefore, amends and supplements section 3339, Revised Statutes, which, as thus modified, would read as follows:

"Section 3339. There shall be paid on all beer, lager-beer, ale, porter, and other similar fermented liquors, brewed or manufactured and sold or stored in warehouse, or removed for consumption or sale, within the United States, by whatever name such liquors may be called, a tax of two dollars for every barrel containing not more than thirty-one gallons; and at a like rate for any other quantity or for any fractional part of a barrel.

"In estimating and computing such tax, the fractional parts of a barrel shall be, etc. (describing them). And the said tax shall be paid by the owner, agent, or superintendent of the brewery or premises in which such fermented liquors are made, and in the manner and at the time hereinafter specified. Provided, That a discount of seven and one-half per centum shall be allowed upon all sales by collectors to brewers of the stamps provided for the payment of said tax: Provided, further, That the additional tax imposed in this section on all fermented liquors stored in warehouse to which a stamp had been affixed shall be assessed and collected in the manner now provided by law for the collection of taxes not paid by stamps."

Section 3339 is one of a number of sections (3335 to 3354, inclusive), which compose chapter 5 of Title 35 of the Revised Statutes, and regulate the levy and collection of the tax on fermented liquors. These