under regulations to any other registered industrial alcohol plant or bonded warehouse for any lawful purpose. 273 Fed. 188, U. S. v. Friedericks. SEC. 5. Any tax imposed by law upon alcohol shall attach to such alcohol as soon as it is in existence as such, and all proprietors of industrial alcohol plants and bonded warehouses shall be jointly and severally liable for any and all taxes on any and all alcohol produced thereat or stored therein, Such taxes shall be a first lien on such alcohol and the premises and plant in which such alcohol is produced or stored, together with all improvements and appurtenances thereunto belonging or in any wise appertaining. 273 Fed. 188, U. S. v. Friedericks. tax. Attachment of SEC. 6. Any distilled spirits produced and fit for beverage pur- Withdrawal of poses remaining in any bonded warehouse on or before the date spirits produced and fit for bevwhen the eighteenth amendment of the Constitution of the United erage purposes for States goes into effect may, under regulations, be withdrawn nonbeverage purtherefrom either for denaturation at any bonded denaturing plant poses of denaturing. or for deposit in a bonded warehouse established under this Act; and when so withdrawn, if not suitable as to proof, purity, or quality for other than beverage purposes, such distilled spirits shall be redistilled, purified, and changed in proof so as to render such spirits suitable for other purposes, and having been so treated may thereafter be denatured or sold in accordance with the provisions of this Act. 273 Fed. 188, U. S. v. Fridericks. 257 U. S. 491, Corneli v. Moore, T. D. 3317. industrial distil SEC. 7. Any distillery or bonded warehouse heretofore legally. Bonding existestablished may, upon filing application and bond and the granting ing distilleries as of permit, be operated as an industrial alcohol plant or bonded leries. warehouse under the provisions of this title and regulations made thereunder. Disposition of SEC. 8. Alcohol may be produced at any industrial alcohol plant established under the provisions of this title from any raw ma- alcohol. terials or by any processes suitable for the production of alcohol, and, under regulations, may be used at any industrial alcohol plant or bonded warehouse or sold or disposed of for any lawful purpose, as in this Act provided. SEC. 9. Industrial alcohol plants and bonded warehouses estab- Exemption from sections lished under the provisions of this title shall be exempt from certain of Revised Statthe provision of sections 3154, 3244, 3258, 3259, 3260, 3263, 3264, utes. 3266, 3267, 3268, 3269, 3271, 3273, 3274, 3275, 3279, 3280, 3283, 3284, 3285, 3286, 3287, 3288, 3289, 3290, 3291, 3292, 3293, 3294, 3295, 3302, 3303, 3307, 3308, 3309. 3310, 3311, 3312, 3313, 3314, and 3327 of the Revised Statutes; sections 48 to 60, inclusive, and sections 62 and 67 of the Act of August 27, 1894 (Twenty-eighth Statutes, pages 563 to 568), and from such other provisions of existing laws relating to distilleries and bonded warehouses as may, by regulations, be declared inapplicable to industrial alcohol plants and bonded warehouses established under this Act. Regulations may be made embodying any provision of the sections above enumerated. 265 Fed. 910, U. S. v. Sohm. 266 Fed. 248, U. S. v. Turner. 268 Fed. 417, Ú. S. v. Stafoff, affirmed Jan. 2, 1923, unreported U. S. T. D. 3424. 269 Fed. 33, U. S. v. Sacein Rouhana Farhat; 820, U. S. v. De Large. 273 Fed. 188, U. S. v. Friedericks. 275 Fed. 440, Duvall v. Dyche. 276 Fed. 395, Gray v. U. S. TAX-FREE ALCOHOL. free. SEC. 10. Upon the filing of application and bond and issuance Sale of denaof permit denaturing plants may be established upon the premises tured alcohol tax of any industrial alcohol plant, or elsewhere, and shall be used exclusively for the denaturation of alcohol by the admixture of such denaturing materials as shall render the alcohol, or any com 104314-233 gar. Distilled vine Withdrawal of for denaturation pound in which it is authorized to be used, unfit for use as an intoxicating beverage. Alcohol lawfully denatured may, under regulations, be sold free of tax either for domestic use or for export. Nothing in this Act shall be construed to require manufacturers of distilled vinegar to raise the proof of any alcohol used in such manufacture or to denature the same. SEC. 11. Alcohol produced at any industrial alcohol plant or alcohol tax free stored in any bonded warehouse may, under regulations, be withdrawn tax free as provided by existing law from such plant or warehouse for transfer to any denaturing plant for denaturation, or may, under regulations, before or after denaturation, be removed from any such plant or warehouse for any lawful tax-free purpose. Spirits less than 160° considered 273 Fed. 188, U. S. v. Friedericks. Spirits of less proof that one hundred and sixty degrees may, alcohol for de under regulations, be deemed to be alcohol for the purpose of denaturation, under the provisions of this title. naturation. ernmental or sci Withdrawal of Alcohol may be withdrawn, under regulations, from any indusalcohol for gov- trial plant or bonded warehouse tax free by the United States or entific purposes. any governmental agency thereof, or by the several States and Territories or any municipal subdivision thereof or by the District of Columbia, or for the use of any scientific university or college of learning, any laboratory for use exclusively in scientific research, or for use in any hospital or sanitorium. Territories. Bonds required But any person permitted to obtain alcohol tax free, except the except with re- United States and the several States and Territories and subspect to Government, States, and divisions thereof, and the District of Columbia, shall first apply for and secure a permit to purchase the same and give the bonds prescribed under title II of this Act, but alcohol withdrawn for nonbeverage purposes for use of the United States and the several States, Territories, and subdivisions thereof, and the District of Columbia may be purchased and withdrawn subject only to such regulations as may be prescribed. Additional pen alties. Commissioner to issue regulations. Loss of alcohol. GENERAL PROVISIONS. SEC. 12. The penalties provided in this title shall be in addition to any penalties provided in title II of this Act, unless expressly otherwise therein provided. SEC. 13. The commissioner shall from time to time issue regulations respecting the establishment, bonding, and operation of industrial alcohol plants, denaturing plants, and bonded warehouses authorized herein, and the distribution, sale, export, and use of alcohol which may be necessary, advisable, or proper, to secure the revenue, to prevent diversion of the alcohol to illegal uses, and to place the nonbeverage alcohol industry and other industries using such alcohol as a chemical raw material or for other lawful purpose upon the highest possible plane of scientific and commercial efficiency consistent with the interests of the Government, and which shall insure an ample supply of such alcohol and promote its use in scientific research and the development of fuels, dyes, and other lawful products. 273 Fed. 188, U. S. v. Friedericks; U. S. v. Catrow (D. C. N. Y.), Aug. 28, 1922, unreported. SEC. 14. Whenever any alcohol is lost by evaporation or other shrinkage, leakage, casualty, or unavoidable cause during distillation, redistillation, denaturation, withdrawal, piping, shipment. warehousing, storage, packing, transfer, or recovery, of any such alcohol the commissioner may remit or refund any tax incurred under existing law upon such alcohol provided he is satisfied that the alcohol has not been diverted to any illegal use: Provided, also, That such allowance shall not be granted if the person claiming same is indemnified against such loss by a valid claim of insurance. 273 Fed. 188, U. S. v. Friedericks. SEC. 15. Whoever operates an industrial alcohol plant or a denaturing plant without complying with the provisions of this title and lawful regulations made thereunder, or whoever withdraws or attempts to withdraw or secure tax free any alcohol subject to tax, or whoever otherwise violates any of the provisions of this title or of regulations lawfully made thereunder shall be liable, for the first offense, to a penalty of not exceeding $1,000, or imprisonment not exceeding thirty days, or both, and for a second or cognate offense to a penalty of not less than $100 nor more than $10,000, and to imprisonment of not less than thirty days nor more than one year. It shall be lawful for the commissioner in all cases of second or cognate offense to refuse to issue for a period of one year a permit for the manufacture or use of alcohol upon the premises of any person responsible in any degree for the violation. 273 Fed. 188, U. S. v. Friedericks; U. S. v. Catrow (D. C. N. Y.), Aug. 28, 1922, unreported. Penalties. Collection of SEC. 16. Any tax payable upon alcohol under existing law may taxes. be collected either by assessment or by stamp as regulations shall provide; and if by stamp, regulations shall issue prescribing the kind of stamp to be used and the manner of affixing and canceling the same. 273 Fed. 188, U. S. v. Friedericks. Release of SEC. 17. When any property is seized for violation of this title seized property. it may be released to the claimant or to any intervening party, in the discretion of the commissioner, on a bond given and approved. Administrative SEC. 18. All administrative provisions of internal-revenue law, features of interincluding those relating to assessment, collection, abatement, and nal revenue law refund of taxes and penalties, and the seizure and forfeiture of made applicable. property, are made applicable to this title in so far as they are not inconsistent with the provisions thereof. 268 Fed. 417, U. S. v. Stafoff, affirmed Jan. 2, 1923, unreported. U. S. -. T. D. 3424. 273 Fed. 188, U. S. v. Friedericks. 277 Fed. 727, Maresca v. U. S. Inconsistent SEC. 19. All prior statutes relating to alcohol as defined in this prior statutes retitle are hereby repealed in so far as they are inconsistent with pealed. the provisions of this title. SEC. 20. That it shall be unlawful to import or introduce into the Canal Zone, or to manufacture, sell, give away, dispose of, transport, or have in one's possession or under one's control within the Canal Zone, any alcoholic, fermented, brewed, distilled, vinous, malt, or spirituous liquors, except for sacramental, scientific, pharmaceutical, industrial, or medicinal purposes, under regulations to be made by the President, and any such liquors within the Canal Zone in violation hereof shall be forfeited to the United States and seized: Provided, That this section shall not apply to liquor in transit through the Panama Canal or on the Panama Railroad. 66 L. Ed. (Adv O.) 511, Grogan v. Walker, T. D. 3337., That each and every violation of any of the provisions of this section shall be punished by a fine of not more than $1,000 or imprisonment not exceeding six months for a first offense, and by a fine not less than $200 nor more than $2,000 and imprisonment not less than one month nor more than five years for a second or subsequent offense. That all offenses heretofore committed within the Canal Zone may be prosecuted and all penalties therefor enforced in the same manner and to the same extent as if this Act had not been passed. SEC. 21. Titles I and III and sections 1, 27, 37, and 38 of title II of this Act shall take effect and be in force from and after the passage and approval of the Act. The other sections of title II shall take effect and be in force from and after the date when Canal Zone. Penalties. Date of becoming effective. the eighteenth amendment of the Constitution of the United States goes into effect. 66 L. Ed. (Adv. 0.) 511, Grogan v. Walker, T. D. 3337. 274 Fed. 208, Tisch v. U. S. 277 Fed. 727, Maresca v. U. S.; 965, Zimmerman v. U. S. F. H. GILLETT, Speaker of the House of Representatives. Vice President of the United States and IN THE HOUSE OF REPRESENTATIVES OF THE UNITED STATES, October 27, 1919. The President of the United States having returned to the House of Representatives, in which it originated, the bill (H. R. 6810) entitled "An Act to prohibit intoxicating beverages, and to regulate the manufacture, production, use, and sale of high-proof spirits for other than beverage purposes, and to insure an ample supply of alcohol and promote its use in scientific research and in the development of fuel, dye, and other lawful industries," with his objections thereto, the House proceeded in pursuance of the Constitution to reconsider the same; and Resolved, That the said bill pass, two-thirds of the House of Representatives agreeing to pass the same. Attest: WM. TYLER PAGE, Clerk. IN THE SENATE OF THE UNITED STATES, The Senate having proceeded to reconsider the bill (H. R. 6810) "An Act to prohibit intoxicating beverages, and to regulate the manufacture, production, use, and sale of high-proof spirits for other than beverage purposes, and to insure an ample supply of alcohol and promote its use in scientific research and in the development of fuel, dye, and other lawful industries," returned by the President of the United States to the House of Representatives, in which it originated, with his objections, and passed by the House on a reconsideration of the same, it was Resolved, That the said bill pass, two-thirds of the Senators present having voted in the affirmative. Attest: 3.40 P. M. GEORGE A. SANDERSON, Secretary. AN ACT SUPPLEMENTAL TO THE NATIONAL 66 PROHIBITION ACT. [Act of Nov. 23, 1921 (42 Stat. 222).] 66 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the words person," "commissioner," "application," permit," "regulation," and "liquor," and the phrase "intoxicating liquor," when used in this Act, shall have the same meaning as they have in Title II of the National Prohibition Act. Definitions. Prescriptions. SEC. 2. That only spirituous and vinous liquor may be prescribed for medicinal purposes, and all permits to prescribe and prescriptions for any other liquor shall be void. No physician shall prescribe, nor shall any person sell or furnish on any prescription, any vinous liquor that contains more than 24 per centum of alcohol by volume, nor shall anyone prescribe or sell or furnish on any prescription more than one-fourth of one gallon of vinous liquor, or any such vinous or spirituous liquor that contains separately or in the aggregate more than one-half pint of alcohol, for use by any person within any period of ten days. No physician shall be furnished with more than one hundred prescription blanks for use in any period of ninety days, nor shall any physician issue more than that number of prescriptions within any such period unless on application therefor he shall blanks. make it clearly apparent to the commissioner that for some extraordinary reason a larger amount is necessary, whereupon the necessary additional blanks may be furnished him. But this provision shall not be construed to limit the sale of any article the manufacture of which is authorized under section 4, Title II, of the National Prohibition Act. 278 Fed. 223, Piel Bros. v. Day; 643, Falstaff Corp. v. Allen; T. D. 3395. If the commissioner shall find after hearing, upon notice as required in section 5 of Title II of the National Prohibition Act, that any article enumerated in subdivisions b, c, d, or e of section 4 of Title II of said National Prohibition Act is being used as a beverage, or for intoxicating beverage purposes, he may require a change of formula of such article and in the event that such change is not made within a time to be named by the commissioner he may cancel the permit for the manufacture of such article unless it is made clearly to appear to the commissioner that such use can only occur in rare or exceptional instances, but such action of the commissioner may by appropriate proceedings in a court of equity be reviewed, as provided for in section 5, Title II, of said National Prohibition Act: Provided, That no change of formula shall be required and no permit to manufacture any article under subdivision (E), section 4, Title II of the National Prohibition Act shall be revoked unless the sale or use of such article is substantially increased in the community by reason of its use as a beverage or for intoxicating beverage purposes. Prescription Beverage. Use of alcoholic preparations. No spirituous liquor shall be imported into the United States, Importation nor shall any permit be granted authorizing the manufacture of and manufacture any spirituous liquor, save alcohol, until the amount of such liquor of liquor restrictnow in distilleries or other bonded warehouses shall have been reduced to a quantity that in the opinion of the commissioner will, (25) ed. |