13. Playing cards: Upon every pack of playing cards Playing cards. containing not more than fifty-four cards, manufactured or imported, and sold, or removed for consumption or sale, a tax of 8 cents per pack.

14. Parcel-post packages: Upon every parcel or package transported from one point in the United States to another by parcel post on which the postage amounts to 25 cents or more, a tax of 1 cent for each 25 cents or fractional part thereof charged for such transportation, to be paid by the consignor.

No such parcel or package shall be transported until a stamp or stamps representing the tax due shall have been affixed thereto.

Parcel-post

packages.

'surance, etc.

15. On each policy of insurance, or certificate, binder, Policy of incovering note, memorandum, cablegram, letter, or other instrument by whatever name called whereby insurance is made or renewed upon property within the United States (including rents and profits) against peril by sea or on inland waters or in transit on land (including transshipments and storage at termini or way points) or by fire, lightning; tornado, wind-storm, bombardment, invasion, insurrection, or riot, issued to or for or in the name of a domestic corporation or partnership or an individual resident of the United States by any foreign corporation or partnership or any individual not a resident of the United States, when such policy or other instrument is not signed or countersigned by an officer or agent of the insurer in a State, Territory, or district of the United States within which such insurer is authorized to do business, a tax of 3 cents on each dollar, or fractional part thereof of the premium charged: Provided, That policies of re-insurance shall be exempt from the tax imposed by this subdivision.

Any person to or for whom or in whose name any such policy or other instrument is issued, or any solicitor or broker acting for or on behalf of such person in the procurement of any such policy or other instrument, shall affix the proper stamps to such policy or other instrument, and for failure to affix such stamps with intent to evade the tax shall, in addition to other penalties provided therefor, pay a fine of double the amount of the

tax.

Documentary stamps prepared and distributed under
authority section 22, act October 22, 1914, and section 805
(a), act October 3, 1917, may be used for payment of taxes
imposed by this section. (T. D. 2893.)

Regulations relating to tax on foreign insurance policies;
in substitution for article 156 of Regulations No. 55.
D. 2891.)

(T.

The following decisions under former acts are cited for reference:

Post stamping of instruments or documents of any description mentioned in Schedule A after the expiration of twelve months from date of issue. (T. D. 21539, 1889.)

140184°-20-36

Collectors can not remit penalty for omission of stamps where the instrument was presented more than twelve months after it was issued. (T. D. 21368, July 10, 1899.)

The action of collector in stamping the instrument under section 13, act of June 13, 1898, cures the defect and operates retroactively. (T. D. 164, June 27, 1900.)

Instruments to be validated may be sent to collector by mail, with affidavit, instead of being personally brought to the collector's office. (T. D. 20696, 1889.)

Stamping and validating instruments. (T. D. 644, T. D.

749.)

Instruments requiring stamps are not competent evidence in courts unless stamped. (T. D. 21074, 1889.) Unstamped instruments inadmissible as evidence in Federal courts. (T. D. 474.)

Stamp taxes on export bills of lading unconstitutional. (Fairbanks v. United States, 181 U. S., 283; T. D. 339.) Tax on telephone messages. (New York Telephone Co. v. Treat, collector, 130 Fed., 340.)

Tax on telegraphic despatches. (Kirk v. Western Union Telegraph Co., 90 Fed., 809.)

Tax on sales of stocks.

(United States v. Thomas, 192 U. S., 363 (T. D. 758), affirming 115 Fed., 207.)

The tax on sales of stocks was constitutional. (Christie Street Commission Co. v. United States, 129 Fed., 506; 126 Fed., 991.)

Tax on "calls" or agreements to sell stocks. (Treat v. White, 181 U. S., 264 (T. D. 338), reversing 100 Fed., 290.) Tax on sales of products or merchandise at exchange or boards of trade, or other similar place, and agreements to sell. (Nicol v. Ames, 173 U. S., 509, affirming 89 Fed., 144; Ingwersen v. United States, 173 U. S., 509). (The Union Stock Yards of Chicago come within the act as deing an "exchange or board of trade, or other similar place.")

Tax on bonds. (Ambrosini v. United States, 187 U. S., 1 (T. D. 593), reversing 105 Fed., 239 (dramshop bonds under State laws not taxable); United States v. Owens, 100 Fed., 70 (saloonkeepers' bonds under the laws of Missouri not taxable); Bettmann v. Warwick, 108 Fed., 127 (bond of a notary as a qualification for office exempt); McNally r. Field, 119 Fed., 445.)

Tax on conveyances. (Chesebrough v. United States, 192 U. S., 253 (T. D. 747); Mastin v. Mastin, 99 Fed., 435 (T. D. 51) (deed of release executed by a receiver not liable); Central Trust Co. of New York v. Columbus &c Ry. Co., 92 Fed., 919. (The deed requires stamps in proportion to the consideration of value" of the interest transferred and not to the entire value of the property, where it is conveyed subject to encumbrances.)

66

Tax on bills of lading. (Fairbank r. United States, 181 U. S., 283; T. D. 339.) (Export bills of lading not taxable.)

Tax on manifests. (New York & Cuba Mail Steamship Co. v. United States, 125 Fed., 320.)

Tax on express receipts. (Crawford r. Hubbell, 177 U. S., 404 (T. D. 100), affirming 89 Fed., 961; United States v. Wells, Fargo & Co. Express, 96 Fed., 835; American Express Co. v. Michigan. 177 U. S., 404; T. D. 100.)

Tax on insurance policies. (23 Op. Atty. Gen., 210; 22 Id., 318, 376; Buckalew v. United States, 102 Fed., 320; 42 C. C. A., 373.)

(Granby

Tax on orders for the payment of money. Mercantile Co. v. Webster, 98 Fed., 604; T. D. 3.) Tax on charter parties. The tax on charter parties unconstitutional as applied to vessels engaged in the ex

port trade. (Hvoslef v. United States, 237 U. S., 1 (T. D. 2186), affirming 217 Fed. 681.)

Policies of marine insurance. The stamp tax on policies of marine insurance on exported products unconstitutional as a tax on exports. (Thames & Mersey Marine Insurance Co. v. United States, 237 U. S., 19 (T. D. 2187), overruling 217 Fed., 683 (T. D. 2009).

Stamps on referee's deed. Tax on deeds executed by State officers not an interference with their duties or operation of State government. (Home Title Insurance Co. v. Keith, collector, 230 Fed., 905; T. D. 2310.)

Stamps required on master's deed. (Crawford, as trustee, v. New South Farm & Home Co., 231 Fed., 999; T. D. 2253.) Powers of attorney in bankruptcy proceedings required to be stamped. (In re Capitol Trading Co., 229 Fed., 806; In the Matter of Charles A. Hawley, 220 Fed., 372; T. D. 2145.)

Stamp tax on sales, agreements to sell, and agreements of sale. Section 22, act of October 22, 1914. Two hundred per cent penalty. Relief by injunction denied. hamer . Smietanka, 239 Fed. 408.)

(Kohl

Board of trade transactions. (Calkins v. Smietanka, 240 Fed., 138.)

Omission to attach required stamp to an instrument did not render it invalid unless omission was fraudulent or designed to evade tax. (Campbell v. Wilcox, 10 Wall., 421; United States v. Buzzo, 18 wall., 125.)

Sec.

CHAPTER TWENTY-FOUR.

TAX ON EMPLOYMENT OF CHILD LABOR.

[Title XII, act of February 24, 1919 (40 Stat. 1057).]

1200. Excise tax on net profits of business using prohibited labor; ages, etc., designated.

1201. Net profits computed; deductions allowed.

1202. Sales for personal benefit at less than market price; computation of gross amount.

1203. Certificates permitting child to

work.

Sec.

1204. Yearly returns to collector.
1205. Assessment and payment of tax.
1206. Inspection of premises; form of
report; punishment for ob-
structing inspection.

1207. "Taxable year" defined; first
taxable year.

TITLE XII.-TAX ON EMPLOYMENT OF CHILD LABOR.

net profits of

prohibited labor. Ages, etc.,

SEC. 1200. [Act of February 24, 1919 (40 Stat., 1057).] Excise tax on That every person (other than a bona fide boys' or girls' business using canning club recognized by the Agricultural Department of a State and of the United States) operating (a) any designated. mine or quarry situated in the United States in which children under the age of sixteen years have been employed or permitted to work during any portion of the taxable year; or (b) any mill, cannery, workshop, factory, or manufacturing establishment situated in the United States in which children under the age of fourteen years have been employed or permitted to work, or children between the ages of fourteen and sixteen have been employed or permitted to work more than eight hours in any day or more than six days in any week, or after the hour of seven o'clock post meridian, or before the hour of six o'clock ante meridian, during any portion of the taxable year, shall pay for each taxable year, in addition to all other taxes imposed by law, an excise tax equivalent to 10 per centum of the entire net profits received or accrued for such year from the sale or disposition of the product of such mine, quarry, mill, cannery, workshop, factory, or manufacturing establish

ment.

Net profits

tions allowed.

SEC. 1201. That in computing net profits under the provisions of this title, for the purpose of the tax there shall computed ; deducbe allowed as deductions from the gross amount received or accrued for the taxable year from the sale or disposition of such products manufactured within the United States the following items:

(a) The cost of raw materials entering into the production:

Raw materials.

Operating ex

(b) Running expenses, including rentals, cost of repairs, and maintenance, heat, power, insurance, manage- penses. ment, and a reasonable allowance for salaries or other compensations for personal services actually rendered, and for depreciation;