distilled spirits and all alcoholic compounds coming from Porto Rico, being subject to the same customs duties as were imposed on other like imported spirits, were subject to tax under the internal-revenue laws. Subsequent to the date named, and up to the time the duties imposed by the act were removed, the attention of this office was not called to the fact that shipments of bay rum were being made from Porto Rico to this country; consequently the article named has not heretofore been held by this office as subject to an internal-revenue tax. Respectfully, J. W. YERKES, Commissioner. Mr. CHAS. H. TREAT, Collector Second District, New York, N. Y. (405.) Special tax-Circus. A small show, though combining some of the features of a circus, is required to pay only the special tax of $10; but when it develops into a complete circus it must then pay the special tax of $100. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., August 20, 1901. SIR: In your letter addressed to this office on the 30th ultimo you state that the Sells & Gray circus pays only a special tax of $10 as a public exhibition, supporting their claim that they are only liable for this amount upon a letter addressed by this office to Collector Lee, of Jacksonville, Fla., but that your deputy, Mr. Minto, finds that they are exhibiting a circus in which "they employ one hundred and fifty men. They have fifty head of horses; fourteen of them are performers in the ring or in some other capacity as circus horses. They have clowns and ringmasters; they have also a great deal of acrobatic performances," and while "they do not have much horseback riding in the ring, they have a little girl that is a fine bareback rider that they put in the ring sometimes, but not always; they have twelve women ride on horses in their parades and during the show" who "perform with the horses and other animals," and "have a large menagerie of animals" which "requires twenty-six wagons to hold them." Upon this statement of the facts, it is clear that Sells & Gray should pay a special tax of $100 instead of $10, which they have been paying. The answer of this office to a letter from Collector Lee, dated November 27, 1900, holding that only a special tax of $10 was required to be paid, was based upon the collector's statement in his letter "that the show consists of a small menagerie, acrobatic and trapeze performers, and one bareback rider, together with several 'clowns,' and that the 'main feature of the show is acrobatic work.'" This is an entirely different description of Sells & Gray's show from that given by your deputy, Mr. Minto. Respectfully, J. W. YERKES, Commissioner. Mr. D. M. DUNNE, Collector Internal Revenue, Portland, Oreg. (406.) Legacy tax. Vested life interest of a legatee, if the clear value of such interest, either alone or taken in connection with other beneficial interests, exceeds the sum of $10,000, is taxable although no benefit from such life interest is received. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., August 20, 1901. SIR: In your letter of the 5th instant you state that Louisa A. Chance, who was left the income on $20,000 for life, under the will of her father, Marck B. Clancy, died two months and nineteen days after her father's decease. You further state that said Louisa A. Chance received no benefit from said life interest, and that at her death the whole amount passed alsolutely to three granddaughters as reversionary legatees. You are advised that T. D. 388, of July 27, 1901, to which you refer, is inapplicable to this case, for the reason that there was only one reversionary legatee in that case, and eliminating the life tenant made no difference either in the rate or amount of the tax. Upon the death of her father, Louisa A. Chance had a vested life interest in $20,000, and if the clear value of such interest, either alone or taken in connection with other beneficial interests, exceeded the sum of $10,000, it was taxable. It is the life tenant's expectancy of living, as shown by approved tables, which determines the value of the life interest. Respectfully, J. W. YERKES, Commissioner. Mr. HENRY L. HERTZ, Collector First District, Chicago, Ill. (407.) Additional instructions relative to articles of merchandise of Porto Rican manufacture subject to internal-revenue tax. [Circular No. 85.-Int. Rev. No. 607.] TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, To collectors of internal revenue: Washington, D. C., August 22, 1901. To secure uniformity in the matter of collecting internal revenue taxes on articles of merchandise of Porto Rican manufacture coming into the United States, and to avoid unnecessary delay in the release of such articles upon payment of the tax due, the instructions contained in Department Circular No. 81 (Int. Rev. No. 606) of July 26, 1901, are hereby amended in the following particulars: 1. Upon the arrival of such articles, and upon the delivery by the master of the vessel to the collector of customs of the sworn manifest of the cargo on Form 8, as required by customs regulations, such col lector or his deputy will issue the prescribed notice, Form 471, revised, to the collector of internal revenue in whose district is located the customs bonded warehouse or store designated for the reception of said articles by the collector of customs. The collector of customs will also, in such cases, on issuing the usual permit to land cargo coastwise, note upon such permit the following: Except merchandise subject to internal-revenue tax, which you will detain, and, if not released under notice received from the collector of internal revenue within fortyeight hours, exclusive of Sundays and legal holidays, send the same for further detention to bonded warehouse and make report of your action to this office. 2. The notice required of the owner or consignee of such articles should likewise be filed with the aforesaid collector of internal revenue, and on filing such notice the owner or consignee will present his bills of lading and invoice for inspection covering the articles so landed. Upon the receipt of such notice, and after the tax ascertained to be due has been paid, and, in case of distilled spirits, after the required inspection has been made and the tax-paid stamps have been affixed, as provided in Department Circular No. 81, above referred to, the collector of internal revenue will issue to the collector of customs a certificate in the following form: FORM NO. 489. OFFICE OF COLLECTOR OF INTERNAL REVENUE, DISTRICT OF 190-. SIR: The internal revenue tax having been paid on the following-described articles of merchandise manufactured in Porto Rico and brought into the United States on board the -, as per your notice (Form 471), dated, 190-, you are authorized to release said merchandise from further detention when the proper tax-paid stamps have been affixed thereto. (Here describe articles by marks, numbers, etc.) To Collector of Customs. Collector. 3. The foregoing certificate, when issued, may be delivered to the owner or consignee, to be by him presented to the inspector in charge, who will, subject, to the conditions therein named, release the goods, and, after indorsing his certificate of delivery thereon, file such certificate with the collector of customs. If, upon the receipt of such certificate by the inspector, the articles named are found not to be stamped, the required stamps may, if practicable, be affixed under his supervision; otherwise the articles should be sent to a bonded warehouse to be there stamped. In such cases the inspector will so note on the certificate, and deliver such certificate to the proper deputy collector, who, at the port of New York, will be the deputy in charge of the fifth division. The deputy, on receiving such notice, will then issue proper instruction to the storekeeper in charge of such warehouse for the necessary stamping and release of the goods. PASSENGERS' BAGGAGE. 4. Cigars, cigarettes, or other articles subject to internal-revenue tax found in the baggage of passengers from Porto Rico, if in sufficient quantity to warrant detention, will be held by the inspector in charge for a sufficient period to allow the passenger to make his application to the collector of internal revenue and obtain from him the necessary stamps, and to this end the inspector will furnish the passenger owning the articles subject to tax with the usual red certificate announcing the detention and describing the articles detained, so that the character of the stamps required may be clearly indicated. Articles in passengers' baggage that are not thus redeemed will be sent for further detention to the bonded warehouse or store designated by the collector as herein provided. In order to facilitate business and avoid error, collectors of internal revenue will furnish persons making application provided for in the preceding paragraph with certificates addressed to the collector of customs, authorizing the release from detention of the merchandise described therein, with or without conditions, as the case may require. Attention is specially called to the fact that as articles of merchandise received from Porto Rico are not now subject to customs duties, the same are not entitled to entry in customs bonded warehouses, and that the temporary storage of such articles as herein provided is for the purpose only of detaining the articles until the internal-revenue tax due thereon has been paid. Articles so stored, therefore, will not be entitled to withdrawal for transfer to another district, and no allowance can be made for leakage, shrinkage, or other loss occurring in such warehouses; nor will permit be issued for the sampling of articles so held. In case of failure of the owner or consignee to pay the tax due, the collector in whose district the goods are stored will report such tax for assessment, and will proceed to collect the same as in the case of other assessed taxes. Where distraint for such taxes becomes necessary, the collector will, however, before distraining on such articles, notify the Commissioner of Internal Revenue in order that proper instruction may issue to the collector of customs for the release of the goods for that purpose. Where, however, articles are brought from Porto Rico to the United States, not for consumption or sale here, but for the purpose only of being reshipped to a foreign port, that fact should be noted on the sworn manifest, Form 8, above referred to, and in such cases the collector of customs may permit the articles to be so reshipped without payment of the internal-revenue tax. Due notice should also be filed by the consignee with the collector of customs before the articles are placed on the foreign-bound vessel, giving the name of the vessel and port to which bound, and, after the articles have been duly laden and the vessel has cleared, the collector of customs will so notify the collector of internal revenue, in which case no internal-revenue tax will be assessed or collected. J. W. YERKES, Commissioner. Approved: L. J. GAGE, Secretary of the Treasury. (408.) Legacy tax. Fluctuation of stocks after appraisement should not be considered in ascertaining the value of an estate for the purpose of assessing legacy tax.-When a substantial sum is realized on a note or any personal property appraised as of no value, it is evident such appraisement was erroneous, and the amount actually realized should govern in assessing the legacy tax. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., August 26, 1901. SIR: Referring to your letter of the 16th instant, relative to appraisement of personal property belonging to estate of Kate Ashley Loomis, deceased, you are advised that the appraisement made to the probate court should govern, unless it subsequently appears that such appraisement was erroneous or made under a misapprehension of facts. Should certain stocks, on account of the market, fluctuate subsequent to death of testator after appraisement, such fluctuation should not be considered in ascertaining the value of the estate for the purpose of assessing legacy tax. When a note is appraised as of no value, and within a comparatively short time a substantial sum is realized, and it is evident that such appraisement was made under a misapprehension of facts, the amount actually realized on said note should govern in assessing legacy tax. The same would be true of other personal property appraised as of no value and subsequently, without any change being made in such property, selling for a substantial sum. The fact that such property sells for a substantial sum soon after being appraised as of no value is conclusive evidence that the appraisal was erroneous. Respectfully, J. W. YERKES, Commissioner. Mr. JOHN C. LYNCH, Collector First District, San Francisco, Cal. (409.) Legacy tax. In case an estate is to be divided by the heirs without administration, legacy return and payment of tax are required. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., September 8, 1901. SIR Referring to a question in a case coming from your district, you are advised that where a party dies intestate leaving personal property, |