Investigating violations. rest. a (2) The word person" shall mean and include natural persons, associations, copartnerships, and corporations. (3) The word "commissioner" shall mean Commissioner of Internal Revenue. 277 Fed. 529, Bay State Wholesale Drug Co. v. Potter. 66 (4) The term application" shall mean a formal written request supported by a cerified statement of facts showing that the commissioner may grant the request. (5) The term "permit " shall mean a formal written authorization by the commissioner setting forth specifically therein the things that are authorized. (6) The term "bond" shall mean an obligation authorized or required by or under this Act or any regulation, executed in such form and for such a penal sum as may be required by a court, the commissioner or prescribed by regulation. 66 (7) The term regulation shall mean any regulation prescribed by the commissioner with the approval of the Secretary of the Treasury for carrying out the provisions of this Act, and the commissioner is authorized to make such regulations. Any act authorized to be done by the commissioner may be performed by any assistant or agent designated by him for that purpose. Records required to be filed with the commissioner may be filed with an assistant commissioner or other person designated by the commissioner to receive such records. 276 Fed. 253, Reid v. 270 Fed. 315, Woods v. City of Seattle. U. S. 277 Fed. 632, Gnerich v. Yellowley. 280 Fed. 697, Heaton v. U. S. SEC. 2. The Commissioner of Internal Revenue, his assistants, agents, and inspectors shall investigate and report violations of this Act to the United States attorney for the district in which committed, who is hereby charged with the duty of prosecuting the offenders, subject to the direction of the Attorney General, as in the case of other offenses against the laws of the United States; and such Commissioner of Internal Revenue, his assistants, agents, Warrants of ar and inspectors may swear out warrants before United States commissioners or other officers or courts authorized to issue the same for the apprehension of such offenders, and may, subject to the control of the said United States attorney, conduct the prosecution at the committing trial for the purpose of having the offenders held for the action of a grand jury. Section 1014 of the Revised Statutes of the United States is hereby made applicable in the enforcement of this Act. Officers mentioned in said section 1014 are authorized to issue search warrants under the limitations provided in Title XI of the Act approved June 15, 1917 (Fortieth Statutes at Large, page 217, et seq.). 264 Fed. 186, Christian Feigenspan v. Bodine. 267 Fed. 595, U. S. v. Ochen; 856, U. S. v. Freedman; 866, U. S. v. Rykowski. 274 Fed. 108, Kelly v. Lewellyn. 275 Fed. 615, Francis Drug Co. v. Potter: 506, U. S. v. Armstrong; 680, Berry v. U. S.; 846, Pummilli v. Riordan; 1004, U. S. v. Ray & Schultz. 277 Fed. 632, Gnerich v. Yellowley. 280 Fed. 432, In re Alpern. 281 Fed. 396, O'Connor v. U. S. 282 Fed. 617, Murry v. Û. S. 282 Fed. 256, Reynolds v. U. S. Acts forbidden. SEC. 3. No person shall on or after the date when the eighteenth amendment to the Constitution of the United States goes into effect, manufacture, sell, barter, transport, import, export, deliver, furnish, or possess any intoxicating liquor except as authorized in this Act, and all the provisions of this Act shall be liberally construed to the end that the use of intoxicating liquor as a beverage may be prevented. 257 U. S. 491. Corneli v. Moore, T. D. 3317. 66 L. Ed. (Adv. 0.) 389, Vigliotti v. Pa. 66 L. Ed. (Adv. O.) 511, Grogan v. Walker, T. D. 3337. 254 U. S. 88, Street v. Lincoln Safe Dep. Co., T. D. 3142. 256 U. S. 368, Dillon v. Gloss; 450, U. S. v. Yuginovich. 264 Fed. 459, U. S. v. Crossen; 842, U. S. v. Murphy. 265 Fed. 950, Ex parte Ramsey. 266 Fed. 138, U. S. v. One Essex Touring Auto; 248 U. S. v. Turner. 267 Fed. 456, Corneli v. Moore; 472, U. S. v. Graham. 268 Fed. 392, U. S. v, Puhac; 397, U. S. v. Dodson; 694, The Goodhope. 269 Fed. 33, U. S. v. Saccin Rouhana Farhat; 184, Hildick Apple Juice Co. v. Williams; 252, Reed v. non Liquor for nonbeverage purposes and wine for sacramental pur-wines ad Sacramental poses may be manufactured, purchased, sold, bartered, trans- beverage liquors, ported, imported, exported, delivered, furnished, and possessed, but only as herein provided, and the commissioner may, upon application, issue permits therefor: Provided, That nothing in this Act shall prohibit the purchase and sale of warehouse receipts covering distilled spirits on deposit in Government bonded warehouses, and no special tax liability shall attach to the business of purchasing and selling such warehouse receipts. 273 Fed. 188, U. S. v. Friedericks. SEC. 4. The articles enumerated in this section shall not, after having been manufactured and prepared for the market, be subject to the provisions of this Act if they correspond with the following descriptions and limitations, namely: (a) Denatured alcohol or denatured rum produced and used as provided by laws and regulations now or hereafter in force. 268 Fed. 397, U. S. v. Dodson. 269 Fed. 184, Hildick Apple Juice Co. v. Williams. 274 Fed. 225, U. S. v. Mathie. (b) Medicinal preparations manufactured in accordance with formulas prescribed by the United States Pharmacopoeia, National Formulary, or the American Institute of Homeopathy that are unfit for use for beverage purposes. 268 Fed. 397, U. S. v. Dodson. 269 Fed. 184, Hildick Apple Juice Co. v. Williams. 274 Fed. 225, U. S. v. Mathie. (c) Patented, patent, and proprietary medicines that are unfit for use for beverage purposes. 268 Fed. 397, U. S. v. Dodson. 269 Fed. 184, Hildick Apple Juice Co. v. Williams. 274 Fed. 225, U. S. v. Mathie. (d) Toilet, medicinal, and antiseptic preparations and solutions that are unfit for use for beverage purposes. 268 Fed. 397, U. S. v. Dodson. 269 Fed. 184, Hildick Apple Juice Co. v. Williams. 274 Fed. 225, U. S. v. Mathie. (e) Flavoring extracts and sirups that are unfit for use as a beverage, or for intoxicating beverage purposes. 268 Fed. 397, U. S. v. Dodson. 269 Fed. 184, Hildick Apple Juice Co. v. Williams. 274 Fed. 225, U. S. v. Mathie. (f) Vinegar and preserved sweet cider. 269 Fed. 397, U. S. v. Dodson. 269 Fed. 184, Hildick Apple Juice Co. v. Williams. 274 Fed. 225, U. S. v. Mathie. 280 Fed. 624, Munroe Cider Vinegar & Fruit Co. v. Riordan. exempted arti A person who manufactures any of the articles mentioned in Manufacture of this section may purchase, and possess liquor for that purpose, but cles. he shall secure permits to manufacture such articles and to purchase such liquor, give the bonds, keep the records, and make the reports specified in this Act and as directed by the commissioner. Penalties for selling exempted No such manufacturer shall sell, use, or dispose of any liquor otherwise than as an ingredient of the articles authorized to be manufactured therefrom. No more alcohol shall be used in the manufacture of any extract, sirup, or the articles named in paragraphs b, c, and d of this section which may be used for beverage purposes than the quantity necessary for extraction or solution of the elements contained therein and for the preservation of the article. 268 Fed. 397, U. S. v. Dodson; 652, U. S. v. Mozzone. 269 Fed. 184, Hildick Apple Juice Co. v. Williams. 270 Fed. 315, Woods v. City of Seattle; 574, Dusold v. U. S. 274 Fed. 225, U. S. v. Mathie. 275 Fed. 704, U. S. v. Beiner. 277 Fed. 632, Gnerich v. Yellowley. 278 Fed. 249, Central Consumers' Co. v. James; 630, U. S. v. Dowling. Any person who shall knowingly sell any of the articels menarticles for bev- tioned in paragraphs a, b, c, and d of this section for beverage erage purposes. purposes, or any extract or sirup for intoxicating beverage purposes, or who shall sell any of the same under circumstances from which the seller might reasonably deduce the intention of the purchaser to use them for such purposes, or shall sell any beverage containing one-half of 1 per centum or more of alcohol by volume in which any extract, sirup, or other article is used as an ingredient, shall be subject to the penalties provided in section 29 of this Title. If the commissioner shall find, after notice and hearing as provided for in section 5 of this Title, that any person has sold any flavoring extract, sirup, or beverage in violation of this paragraph, he shall notify such person, and any known principal for whom the sale was made, to desist from selling such article; and it shall thereupon be unlawful for a period of one year thereafter for any person so notified to sell any such extract, sirup, or beverage without making an application for, giving a bond, and obtaining a permit so to do, which permit may be issued upon such conditions as the commissioner may deem necessary to prevent such illegal sales, and in addition the commissioner shall require a record and report of sales. Analysis such articles. of Revoking permit to make such articles. quired. SEC. 5. Whenever the commissioner has reason to believe that any article mentioned in section 4 does not correspond with the descriptions and limitations therein provided, he shall cause an analysis of said article to be made, and if, upon such analysis, the commissioner shall find that said article does not so correspond, he shall give not less than fifteen days' notice in writing to the person who is the manufacturer thereof to show cause why said article should not be dealt with as an intoxicating liquor, such notice to be served personally or by registered mail, as the commissioner may determine, and shall specify the time when, the place where, and the name of the agent or official before whom such person is required to appear. 268 Fed. 652, U. S. v. Mozzone. 269 Fed. 184, Hildick Apple Juice Co. v. Williams. 274 Fed. 225, U. S. v. Mathie. 277 Fed. 529, Bay State Wholesale Drug Co. v. Potter; 632, Gnerich v. Yellowley. If the manufacturer of said article fails to show to the satisfaction of the commissioner that the article corresponds to the descriptions and limitations provided in section 4 of this Title, his permit to manufacture and sell such article shall be revoked. The manufacturer may by appropriate proceeding in a court of equity have the action of the commissioner reviewed, and the court may affirm, modify, or reverse the finding of the commissioner as the facts and law of the case may warrant, and during the pendency of such proceedings may restrain the manufacture, sale, or other disposition of such article. Permits re- SEC. 6. No one shall manufacture, sell, purchase, transport, or prescribe any liquor without first obtaining a permit from the commissioner so to do, except that a person may, without a permit, purchase and use liquor for medicinal purposes when prescribed Hospitals and by a physician as herein provided, and except that any person who in the opinion of the commissioner is conducting a bona fide hospital or sanatorium engaged in the treatment of persons suffering from alcoholism, may, under such rules, regulations, and con sanatoriums. ditions as the commissioner shall prescribe, purchase and use, in accordance with the methods in use in such institution, liquor, to be administered to the patients of such institution under the direction of a duly qualified physician employed by such institution. 257 U. S. 491, Corneli v. Moore, T. D. 3317. 266 Fed. 138, U. S. v. One Essex Touring Auto.; 248, U. S. v. Turner. 267 Fed. 581, U. S. v. Masters. 268 Fed. 397, U. S. v. Dodson; 417, U. S. v. Stafoff, affirmed Jan. 2, 1923, unreported, U. S. T. D. 3424; 1003, U. S. v. One Haynes Auto. 269 Fed. 33, U. S. v. Sacein Rouhana Farhat; 184, Hildick Apple Juice Co. v. Williams; 252, Reed v. Thurmond; 820, U. S. v. DeLarge. 270 Fed. 574, Dusold v. U. S.; 281, U. S. v. Phillips. 273 Fed. 188, U. S. v. Friedericks; 623, Ex parte Poole: 727, U. S. v. Regan; 934, U. S. v. One Cole Aero Eight Auto. 275 Fed. 615, Francis Drug Co. v. Potter; 704, U. S. v. Beiner. 276 Fed. 544, Small Grain Distilling & Drug Co. v. Hamilton; 395, Gray v. U. S.; 817, U. S. v. Hana; 253, Reid v. U. S. 277 Fed. 632, Gnerich v. Yellowley. 278 Fed. 393, Lacks v. Mitchell; 630, U. S. v. Dowling. 280 Fed. 86, Sharp v. U. S. 281 Fed. 247, U. S. v. 254 Bottles Intoxicating Liquor; 511, Albert v. U. S. Permits to pur All permits to manufacture, prescribe, sell, or transport liquor, Expiration of may be issued for one year, and shall expire on the 31st day of permits. December next succeeding the issuance thereof: Provided, That the commissioner may without formal application or new bond extend any permit granted under this Act or laws now in force after August 31 in any year to December 31 of the succeeding year: Provided further, That permits to purchase liquor for the purpose of manufacturing or selling as provided in this Act shall not be in force to exceed ninety days from the day of issuance. A permit to purchase liquor for any other purpose shall not be in chase. force to exceed thirty days. Permits to purchase liquor shall specify the quantity and kind to be purchased and the purpose for which it is to be used. No permit shall be issued to any person who within one year prior to the application therefor or issuance thereof shall have violated the terms of any permit issued under this Title or any law of the United States or of any State regulating traffic in liquor. No permit shall be issued to anyone to sell liquor at retail, unless the sale is to be made through a pharmacist designated in the permit and duly licensed under the laws of his State to compound and dispense medicine prescribed by a duly licensed physician. No one shall be given a permit to prescribe liquor unless he is a physician duly licensed to practice medicine and actively engaged in the practice of such profession. Every permit shall be in writing, dated when issued, and signed by the commissioner or his authorized agent. It shall give the name and address of the person to whom it is issued and shall designate and limit the acts that are permitted and the time when and place where such acts may be performed. No permit shall be issued until a verified, written application shall have been made therefor, setting forth the qualification of the applicant and the purpose for which the liquor is to be used. Physicians. Form of permits prescribed Bonds. The commissioner may prescribe the form of all permits and applications and the facts to be set forth therein. Before any by commissioner. permit is granted the commissioner may require a bond in such form and amount as he may prescribe to insure compliance with the terms of the permit and the provisions of this Title. In the event of the refusal by the commissioner of any application for a permit, the applicant may have a review of his decision before a court of equity in the manner provided in section 5 hereof. mental purposes Nothing in this title shall be held to apply to the manufacture, Exemption of sale, transportation, importation, possession, or distribution of wine for sacrawine for sacramental purposes, or like religious rites, except sec- from provisions tion 6 (save as the same requires a permit to purchase) and of title. section 10 hereof, and the provisions of this Act prescribing penalties for the violation of either of said sections. No person to whom a permit may be issued to manufacture, transport, import, or sell wines for sacramental purposes or like religious rites shall sell, barter, exchange, or furnish any such to any person not a rabbi, minister of the gospel, priest, or an officer duly authorized for the purpose by any church or congregation, nor Physicians prescribing. Physician's rec ords. Prescription blanks. Citation to appear before commissioner. Revocation permits. to any such except upon an application duly subscribed by him, which application, authenticated as regulations may prescribe, shall be filed and preserved by the seller. The head of any conference or diocese or other ecclesiastical jurisdiction may designate any rabbi, minister, or priest to supervise the manufacture of wine to be used for the purposes and rites in this section mentioned, and the person so designated may, in the discretion of the commissioner, be granted a permit to supervise such manufacture SEC. 7. No one but a physician holding a permit to prescribe liquor shall issue any prescription for liquor. And no physician shall prescribe liquor unless after careful physical examination of the person for whose use such prescription is sought, or if such examination is found impracticable, then upon the best information obtainable, he in good faith believes that the use of such liquor as a medicine by such person is necessary and will afford relief to him from some known ailment. Not more than a pint of spirituous liquor to be taken internally shall be prescribed for use by the same person within any period of ten days and no prescription shall be filled more than once. Any pharmacist filling a prescription shall at the time indorse upon it over his own signature the word "canceled," together with the date when the liquor was delivered, and then make the same a part of the record that he is required to keep as herein provided. 270 Fed. 789, Oertel v. Gregory; 273 Fed. 188, U. S. v. Friedericks; 275 Fed. 704, U. S. v. Beiner; 277 Fed. 727, Maresca v. U. S. Every physician who issues a prescription for liquor shall keep a record, alphabetically arranged in a book prescribed by the commissioner, which shall show the date of issue, amount prescribed, to whom issued, the purpose or ailment for which it is to be used and directions for use, stating the amount and frequency of the dose. SEC. 8. The commissioner shall cause to be printed blanks for the prescriptions herein required, and he shall furnish the same, free of cost, to physicians holding permits to prescribe. The prescription blanks shall be printed in book form and shall be numbered consecutively from one to one hundred, and each book shall be given a number, and the stubs in each book shall carry the same numbers as and be copies of the prescriptions. The books containing such stubs shall be returned to the commissioner when the prescription blanks have been used, or sooner, if directed by the commissioner. All unused, mutilated, or defaced blanks shall be returned with the book. No physician shall prescribe and no pharmacist shall fill any prescription for liquor except on blanks so provided, except in cases of emergency, in which event a record and report shall be made and kept as in other cases. SEC. 9. If at any time there shall be filed with the commissioner a complaint under oath setting forth facts showing, or if the commissioner has reason to believe, that any person who has a permit is not in good faith conforming to the provisions of this Act, or has violated the laws of any State relating to intoxicating liquor, the commissioner or his agent shall immediately issue an order citing such person to appear before him on a day named not more than thirty and not less than fifteen days from the date of service upon such permittee of a copy of the citation, which citation shall be accompanied by a copy of such complaint, or in the event that the proceedings be initiated by the commissioner with a statement of the facts constituting the violation charged, at which time a hearing shall be had unless continued for cause. Such hearings shall be held within the judical district and within fifty miles of the place where the offense is alleged to have ocof curred, unless the parties agree on another place. If it be found that such person has been guilty of willfully violating any such laws, as charged, or has not in good faith conformed to the provisions of this Act, such permit shall be revoked, and no permit shall be granted to such person within one year thereafter. Should the permit be revoked by the commissioner, the permittee may have a review of his decision before a court of equity in the |