SEC. 628. [Act of February 24, 1919 (40 Stat., 1057).] That there shall be levied, assessed, collected, and paid in lieu of the taxes imposed by sections 313 and 315 of the Revenue Act of 1917

Tax drinks,

on

soft mineral

(a) Upon all beverages derived wholly or in part from cereals or substitutes therefor, and containing less than waters, etc. one-half of one per centum of alcohol, sold by the manufacturer, producer, or importer, in bottles or other closed containers, a tax equivalent to 15 per centum of the price for which so sold; and upon all unfermented grape juice, ginger ale, root beer, sarsaparilla, pop, artificial mineral waters (carbonated or not carbonated), other carbonated waters or beverages, and other soft drinks, sold by the manufacturer, producer, or importer, in bottles or other closed containers, a tax equivalent to 10 per centum of the price for which so sold; and

(b) Upon all natural mineral waters or table waters, sold by the producer, bottler, or importer thereof, in bottles or other closed containers, at over 10 cents per gallon, a tax of 2 cents per gallon.

(T. D.

Regulations 52, relating to tax on soft drinks and other
beverages sold in bottles or other closed containers.
2838.)

Article 6 of Regulations 52 amended. (T. Ds. 2893, 2908.)
Article 11 of Regulations 52 supplemented. (T. D. 2893.)
Manufacturers, producers, importers and vendors are
liable to tax upon all sales of taxable articles made to States
or political subdivisions thereof. (T. D. 2897.)

Liability of manufacturer to tax upon sales of bottled fruit juices; article 4 of Regulations No. 52 amended. (T. D. 2932.)

Returns

and

SEC. 629. [Act of February 24, 1919 (40 Stat., 1057).] That each manufacturer, producer, bottler, or importer payment of tax. of any of the articles enumerated in section 628 shall make monthly returns under oath in duplicate and pay the taxes imposed in respect to such articles by such section to the collector for the district in which is located the principal place of business, containing such information necessary for the assessment of the tax, and at such times and in such manner as the Commissioner, with the approval of the Secretary, may by regulation prescribe. The tax shall, without assessment by the Commissioner or notice from the collector, be due and payable to the collector at the time so fixed for filing the return. If the tax is not paid when due, there shall be added as part of the tax a penalty of 5 per centum, together with interest at the rate of 1 per centum for each full month, from the time when the tax became due.

Penalty for nonpayment

of

tax.

on Tax soft drinks, mixed at fountains,

SEC. 630. [Act of February 24, 1919 (40 Stat., 1057).] That on and after May 1, 1919, there shall be levied, soda assessed, collected, and paid a tax of 1 cent for each 10 etc. cents or fraction thereof of the amount paid to any person conducting a soda fountain, ice-cream parlor, or other similar place of business, for drinks commonly

Remission of tax on grape

dently destroyed.

known as soft drinks, compounded or mixed at such place of business, or for ice cream, ice-cream sodas, sundaes, or other similar articles of food or drink, when any of the above are sold on or after such date for consumption in or in proximity to such place of business. Such tax shall be paid by the purchaser to the vendor at the time of the sale and shall be collected, returned, and paid to the United States by such vendor in the same manner as provided in section 502.

Regulations 53, relating to tax on soft drinks, ice cream and similar articles sold at soda fountains or similar places of business. (T. D. 2839.)

Article 4 of Regulations 53 amended. (T. D. 2893.)
Article 6 of Regulations 53 supplemented.

(T. D. 2893.)

Article 20, sales by post exchanges, municipalities, etc., added to Regulations 53. (T. D. 2893.)

SEC. 5. [Act of June 7, 1906 (34 Stat., 215).] That the brandy acci- provisions of sections thirty-two hundred and twentyone and thirty-two hundred and twenty-three of the Revised Statutes of the United States, as amended by an act approved March first, eighteen hundred and seventynine, are hereby extended to grape brandy withdrawn for use in the fortification of sweet wines, and which, prior to such use, is accidentally destroyed by fire or other casualty while stored in the fortifying room on the winery premises.

This section is held as not repealed by the amendatory act of October 22, 1914, and subsequent acts; other sections of the act of 1906 were superseded.

Instructions relative to fortification of pure sweet wine. (Regulations 28, revised.)

General instructions relative to manufacture and sale of wine, cordials, etc. (Regulations 28, supplement No. 2.) Synopsis of decisions relating to wines, liqueurs, cordials, etc., prior to October 30, 1916. (T. D. 2387.)

Grape juice treated with the fumes of sulphur not eligible for fortification as pure sweet wine under tariff act of October 1, 1890, and amendments thereto. (T. D. 1314.)

Suspension of the provision of regulations prohibiting use of fortified wines in the manufacture or preparation of patent or proprietary medicines or compounds. (T. D. 1435.)

CHAPTER SEVEN.

NATIONAL PROHIBITION.

Eighteenth Amendment to the Constitution.

NATIONAL PROHIBITION ACT.

Act October 28, 1919 (41 Stat., —).

[Title I. To Provide for the Enforcement of War Prohibition.]

[Title II. Prohibition of Intoxicating Beverages.]

Prohibition of intoxicating liq

purposes.

Sec.

11. Withdrawal; spirits of less proof than 160; withdrawal by United States, States, etc.; permits.

12. Additional penalties.

13. Regulations.

14. Refunds in case of losses.
15. Penalties.

16. Collection of tax.

17. Release of seized property.
18. Administrative provisions of inter-
nal-revenue law applicable.

19. Repeal of laws.

20. Canal Zone; fine and imprisonment.

21. Effective date of provisions; passage over President's veto.

AMENDMENT TO CONSTITUTION.

ARTICLE 18.

Section 1. After one year from the ratification of this uors for beverage article the manufacture, sale, or transportation of intoxicating liquors within, the importation thereof into, or the exportation thereof from the United States and all territory subject to the jurisdiction thereof for beverage purposes is hereby prohibited.

Enforcement.

Sec. 2. The Congress and the several States shall have concurrent power to enforce this article by appropriate legislation.

Sec. 3. This article shall be inoperative unless it shall have been ratified as an amendment to the Constitution by the legislatures of the several States, as provided in the Constitution, within seven years from the date of the submission hereof to the States by the Congress.

Act of November 21, 1918 (40 Stat., 1045), was not abrogated or repealed by the eighteenth amendment to the Constitution. (Hamilton v. Kentucky Distilleries & Warehouse Co. and Dryfoos et al. v. Edwards, decided by Supreme Court, December 15, 1919.)

NATIONAL PROHIBITION ACT.

Be it enacted, That the short title of this Act shall be the "National Prohibition Act."

TITLE I.

TO PROVIDE FOR THE ENFORCEMENT OF WAR PROHIBITION.

"War Prohibi

"Beer, or other

wine, intoxi

vinous liquors

or

SECTION 1. [Act October 28, 1919 (41 Stat. ).] tion Act" deThe term "War Prohibition Act" used in this Act shall fined. mean the provisions of any Act or Acts prohibiting the sale and manufacture of intoxicating liquors until the conclusion of the present war and thereafter until the termination of demobilization, the date of which shall be determined and proclaimed by the President of the United States. The words "beer, wine, or other intoxi- cating malt cating malt or vinous liquors" in the War Prohibition defined. Act shall be hereafter construed to mean any such beverages which contain one-half of 1 per centum or more of alcohol by volume: Provided, That the foregoing definition shall not extend to dealcoholized wine nor to any beverage or liquid produced by the process by which beer, ale, porter or wine is produced, if it contains less than one-half of 1 per centum of alcohol by volume, and is made as prescribed in section 37 of Title II of this Act, and is otherwise denominated than as beer, ale, or porter, and is contained and sold in, or from, such sealed and labeled bottles, casks, or containers as the commissioner may by regulation prescribe.

report of

SEC. 2. The Commissioner of Internal Revenue, his as- and Investigation sistants, agents, and inspectors, shall investigate and re- violations of law. port violations of the War Prohibition Act to the United States attorney for the district in which committed, who District attor shall be charged with the duty of prosecuting, subject to ney's duty. the direction of the Attorney General, the offenders as in the case of other offenses against laws of the United States; and such Commissioner of Internal Revenue, his assistants, agents, and inspectors may swear out warrants Warrants; oombefore 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 of fenders held for the action of a grand jury.

mitting trial.

Place of sale

SEC. 3. Any room, house, building, boat, vehicle, struc- as nuisance. ture, or place of any kind where intoxicating liquor is sold, manufactured, kept for sale, or bartered in violation of the War Prohibition Act, and all intoxicating liquor and all property kept and used in maintaining such a place, is hereby declared to be a public and common nuisance, and any person who maintains or assists in maintaining such public and common nuisance shall be guilty of a misdemeanor, and upon conviction thereof shall be fined not less than $100 nor more than $1,000, or be imprisoned for not less than thirty days or more than one year, or both. If a person has knowledge that his property is occupied or used in violation of the provisions of the War Prohibition Act and suffers the same to be so used, such property shall be subject to a lien for, and may be sold to pay, all fines and costs assessed against the oc

Penalty.