rally and in the ordinary course of banking business are so employed, excluding only such funds which, though temporarily used by the bank are of necessity withdrawn from the banking business through the payment of dividends, taxes, ascertained losses, or fixed charges of whatever character. Any decision of this office at variance with the above is hereby rescinded. Respectfully, J. W. YERKES, Commissioner. Mr. JOHN C. LYNCH, Collector First District, San Francisco, Cal. (441.) Oleomargarine. Retail dealers in oleomargarine may, in advance of sales, make up packages in retail quantities, mark and brand the same, and place them in or on the original stamped packages for retail.-Illegible or concealed marks are not those required by law.— Retail dealers must comply strictly with regulations to avoid penalties. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., December 4, 1901. SIR: Your letter of the 27th ultimo has been received. You report that in your investigation of the establishment of wholesale dealer in oleomargarine, at, you discovered the employees in the act of molding or printing 1-pound bricks of oleomargarine from the bulk contents of a 50 pound package which had been emptied for that purpose. You state that you were informed by the employees that Mr. had permission from this office to dump oleomargarine from boxes when received in solid form and print into 1-pound bricks, wrap it, and return it to the original box. In reply, you are advised that no such permission has been granted by this office, and it is presumed reference was intended to be made to the third paragraph, page 44, regulations No. 9, revised, where it is held that retail dealers are permitted to take oleomargarine from the original stamped package in advance of sales, and put it up in retail packages marked and branded as the law and regulations prescribe, and offer them for sale, provided such prepared retail packages remain in the manufacturer's original package, and at most stacked up upon the outside thereof, or upon the lid undetached from the package until the contents has been bargained for and sold; provided that in so doing none of the marks, brands, stamps, and notices required upon the packages are concealed. The meaning of this is that a retail dealer may, in advance of sale, make up packages in retail quantities, mark, and brand the same, and then place such packages in or on the original stamped package for retail. It is required that the oleomargarine shall at all times be in or on the stamped package. Under the provisions of section 13, act of August 2, 1886, whenever any stamped package of oleomargarine is emptied, it shall be the duty of the person in whose hands the same is to destroy utterly the stamps thereon, and upon such person as willfully neglects or refuses so to do imposes a fine for each offense of not less than $50 and imprisonment for not less than ten days nor more than six months. on his Any person guilty of completely emptying a package of oleomargarine without destroying the stamp thereon incurs liability under section 13 above cited, and when discovered should be proceeded against. You also submit a sample of the label used by Mr. retail packages. This consists of a small square piece of thin paper, on which is printed his name, location, and the words "pounds" and "oleomargarine" in conformity with the regulations. You report that this small slip is placed on the package of oleomargarine instead of having the same marks on the paper or wooden package containing the oleomargarine. This practice is not warranted by the law and regulations, and appears to be an attempt to evade the plain requirements set forth in the regulations No. 9 (page 44), where it is held that illegible or concealed marks and brands are not those contemplated and required by the law and regulations. It is not deemed a compliance with the regulations if the word "oleomargarine" and the other required words and figures shall be illegibly branded or printed, or so placed as to be concealed from view by being on the inside of the package, or by folding in the stamped portion of the paper sheet used for wrapping or otherwise. The law requires retail dealers in oleomargarine to pack the oleomargarine sold by them in suitable wooden or paper packages. Packages similar to those usually employed in selling butter or lard at retail may be used. If the dealer uses paper to make the packages, there must be printed or branded on the outside thereof, so as to be plainly seen by the purchaser, the words required by the regulations. this is done it is deemed a sufficient compliance with the law, the intent and purpose of which is that the purchaser shall be notified of the nature of the article purchased. This privilege, in view of the requirements of section 6 of the act of August 2, 1886, is regarded as very liberal to the retail dealers in oleomargarine, and should therefore be strictly complied with by them. Failing to do so, they render themselves liable to the penalties of said section. Respectfully, J. W. YERKES, Commissioner. Mr. E. A. ALEXANDER, Revenue Agent, Philadelphia, Pa. (442.) Legacy tax. Legacy return, Form 419, should be made and the tax paid to the collector or deputy collector of the district of which the deceased person was a resident.-The nonresident mentioned in the statute is held to mean a person residing outside the jurisdiction of the United States. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., December 7, 1901. SIR: This office has just received a legacy return, Form 419, dated November 21, 1901, and approved by you, covering the estate of Wm. Powell Mason, deceased, late a resident of Walpole, Cheshire County, N. H. The legacy tax reported amounts to $33,777.72, and there is the mark of a stamp indicating that the tax has been paid to your office. If the said Wm. Powell Mason was a resident of New Hampshire at the time of his decease, as reported by the legacy return and as indicated by the will, a copy of which is with said return, the return should have been made and the tax paid to the collector of New Hampshire district. (See sec. 30, act of June 13, 1898, as amended by act of March 2, 1901.) The nonresident mentioned in the statute is held to mean a person residing outside the jurisdiction of the United States. The legacy return in question, which is incomplete in that no appraisal and schedule of debts, etc., accompany it, is returned herewith. If the facts are as above set forth, you are directed to forward the legacy return in duplicate and other papers belonging to said return to Mr. J. A. Wood, collector of internal revenue, Portsmouth, N. H., and remit to Collector Wood the legacy taxes which you have collected in this case. Collector Wood has been advised in the premises. Respectfully, J. W. YERKES, Commissioner. Mr. J. D. GILL, Collector Third District, Boston, Mass. (443.) Stamp tax-Bottled wines. Bottles containing wine transferred in quantity from a bulk package must be stamped, whether intended for sale by the glass over the bar or otherwise.—Treasury decision 19961 explained. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., December 7, 1901. SIR Referring to the matter of the proposed assessment against -, concerning which you were addressed on the 4th instant, a review of the correspondence in the case leads to the belief that some misapprehension exists among taxpayers, and possibly among internalrevenue officers, as to the meaning and application of a portion of Treasury decision 19961, which reads as follows: Where a retail dealer fills a bottle from a barrel for his bar stock, from which he sells wine by the glass, he is not required to stamp the bottle. The exemption in the foregoing paragraph was intended to apply exclusively to a case where a retailer, usually a barkeeper, uses a single bottle simply as a decanter for the purpose of transferring wine from a bulk package to a customer's glass, the intent to sell by the glass being confirmed by the actual and constant use of the bottle for that purpose. The said exemption is not applicable to cases where a quantity of wine is transferred from a bulk package to bottles, there to remain for some time, whether intended for sale by the glass over the bar or otherwise. In such cases the general rule stated in Treasury decision 19961 applies, namely, that "the stamp is to be affixed when the wines are transferred to the bottles for sale, by the person who makes the transfer." You will please see that the foregoing is brought to the attention of officers and taxpayers likely to be interested, in your district, and that the same is observed in practice hereafter. Respectfully, J. W. YERKES, Commissioner. Mr. HENRY FINK, Collector First District, Milwaukee, Wis. (444.) Use of telegraph in the transaction of official business. [Int. Rev. Circular No. 613.] TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, To collectors of internal revenue and others concerned: For the purpose of exercising greater economy in the use of the telegraph, all officers and employees of the Internal-Revenue Service a.e advised that in addressing official telegraphic messages to this office it is only necessary to use the words "Commissioner Internal Revenue, Washington, D. C.," the name of the Commissioner or a deputy commissioner being superfluous. In signing official telegraphic messages addressed to this office, it is sufficient to sign the surname, omitting first name or initials, the designation of the office of the sender to be given "Bingham, Collector," "Sinsel, Revenue Agent," etc. In addressing such messages to collectors, it is unnecessary to use more than the surname, as such officers are located and always well known. Hereafter, when using the telegraph on official business, the above rules will be followed by officers and employees of the Internal Revenue Service. Officers are reminded that the use of the telegraph at the expense of the Government should be resorted to only upon important public business, and in case of urgent necessity, where the ordinary mail facilities do not furnish sufficient dispatch. It frequently occurs that collectors neglect to mail orders for stamps in time to meet the requirements of their offices, making it necessary to telegraph such orders. This practice is very objectionable, and should be discontinued as far as possible. All telegrams sent by internal revenue officers, or by private parties in their own personal interest, must be prepaid and all telegraphic replies to such telegrams will be sent at the expense of the persons sending the same. This rule will be rigidly enforced and the attention of all concerned is specially called to its provisions. J. W. YERKES, Commissioner. (445.) Special-tax-Duffy's Pure Malt Whisky. Druggists who sell Duffy's Pure Malt Whisky, a compound of distilled spirits and drugs, under a label holding it out as a remedy for diseases, and sell it in good faith for medicinal use only, never selling it as a beverage nor selling it to those buying it for use as a beverage, are not required to pay special tax as liquor dealers under the internal-revenue laws. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., December 11, 1901. SIR: In reply to your letter of the 3d instant, you are hereby informed that if Duffy's Pure Malt Whisky, as now put upon the market, is a compound of distilled spirits and drugs and is sold only under a label holding it out as a remedy for diseases specified therein, and not as a beverage, it comes under the ruling in the last paragraphs of Circular No. 608, and druggists selling it in good faith for medicinal use only, never selling it as a beverage, nor selling it knowingly to those buying it for use as a beverage, are not required to pay special tax therefor as liquor dealers under the internal-revenue laws of the United States. But it should be distinctly understood that this ruling, which is consonant with the exempting provisions of section 3246, Revised Statutes, has reference only to the revenues of the United States and can not be set up by any druggist as a defense in the case of his prosecution under any State law or local ordinance for selling this or any other alcoholic medicinal compound. Respectfully, Mr. W. F. BALKAM, Rochester, N. Y. J. W. YERKES, Commissioner. |