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ufacturers of perfume throughout the country-Paul Rieger, San Francisco, Dabrooks, Detroit, and Colgate, New York City, with the view of determining, if possible, the dividing line between retail and bulk packages of perfumery. The results of these investigations tended to show that it was erroneous to suppose that there is any ratio between the quantity and price of retail and bulk packages of perfume that is to say, Paul Rieger states his 1-ounce packages of extracts are sold to dealers for 35 cents, and are ordinarily retailed for 50 cents, and are stamped to correspond with this retail price. But he goes on to show that his 8-ounce packages are sold to the dealer for $1.40 and are retailed for $2. It will be observed that the profit to the retailer on the 1-ounce and 8-ounce package is the same, 30 per cent. It was further shown that while dealers might, and usually did, retail from these 8-ounce packages at a price from 40 cents to 75 cents an ounce, and thus secure to themselves an increase of profit, these 8-ounce packages were nevertheless very often sold in the original packages to the consumer for $2, and were stamped accordingly.

Packages of perfume in larger quantities than 8 ounces (pints, quarts, half gallons, and gallons), it was stated, are classed as bulk packages, and are usually sold to druggists and small manufacturers, who draw the goods off into packages containing from one-half to eight ounces. Such bulk packages are stamped according to the number of 8-ounce packages contained therein. This perfumery is of the class known as standard extracts.

In commenting upon the testimony given by Paul Rieger & Co., Dabrooks, and Colgate, the investigating officers declared it to be reliable.

I am satisfied that this office can follow no safer practice in questions affecting the sale of manufactured goods than to be guided by the expert testimony of the representative manufacturers.

With reference to standard extracts, and for the purpose of securing a uniform method of computing the tax, it is held that 8 ounces shall be considered to be the largest retail package; that quantities in excess of 8 ounces are to be considered as bulk packages. Retail packages, as heretofore, must be stamped in accordance with the price at which they are ordinarily sold to the consumer. Bulk packages must be stamped in proportion to the number of 8-ounce packages contained therein, and according to the retail price of such 8-ounce packages. It would appear, therefore, under this ruling, that the perfumery in 8-ounce packages found in your district stamped to the amount of 5 cents is properly stamped.

Respectfully,

ROBT. WILLIAMS, Jr., Acting Commissioner. Mr. W. H. POWELL, Collector Thirteenth District, East St. Louis, Ill.

(93.)

Purchase of proprietary stamps by stamp collectors.

Proprietary stamps furnished by the Government may be sold to all persons applying therefor.--Those made from private designs and furnished without expense to the Government can only be had from their proprietors.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., April 10, 1900.

SIR: Your letter of the 5th instant is received, inquiring as to your right, as a stamp collector, to purchase and sell proprietary stamps made from private dies, as well as other proprietary stamps.

You state that some proprietors do not object to selling their stamps; that others do object and will not sell or give away a single specimen, claiming that it defeats the object they had in adopting the special stamp. You inclose three samples of proprietary stamps, two of which are new and unused, which you bought from the proprietors, and one which has been used upon a bottle of "San Metto," manufactured by the Od Chemical Company of New York. You state that on the packages stamped by the Od Chemical Company are printed the following words:

It is unlawful to have in possession the Government revenue stamp on this package except as attached to this package containing the bottle of medicine. The penalties are severe.

You ask if this is correct. You state that you got the stamp from a party who buys the stamped medicine by the dozen. He uses the medicine and gives you the stamps to sell. You submit that if the statement of the Od Chemical Company is correct all stamp collections of private parties can be confiscated and penalties imposed.

In reply, you are advised that, as to proprietary stamps furnished by the Government, their sale to all persons applying for them is specifically authorized by section 25 of the act of June 13, 1898.

As to proprietary stamps from private dies or designs, furnished without expense to the Government, under section 9 of the act, they can only be legitimately procured from their proprietors. The method of procurement by purchase of the proprietary article to which they are affixed, and removal therefrom without destruction, is unlawful, for the reason that seetion 9 provides that:

In all cases where such stamp is used, instead of cancellation by initials and date, the said stamp shall be so affixed on the box, bottle, or package that in opening the same, or using the contents thereof, the said stamp shall be effectually destroyed.

In view of this provision, the burden of proof will be on anyone found in possession of a proprietary stamp from a private die or design as authorized by section 9, which has been used and removed without

destruction, to show that it was not removed for reuse and in fraud of

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Rate at which stamp tax is to be computed on bulk packages of imported bay rum.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 27, 1900.

SIR: I have to acknowledge the receipt of your letter of the 19th instant, relative to the stamping of imported bay rum in bulk packages. You state that you have heretofore required bay rum in bulk packages imported in your district to be stamped under Schedule B at the rate of $4 per gallon, but you recommend that this rate be reduced to $3 per gallon.

On inquiry by this office, it is found that the usual retail price or value of imported bay rum is $3.50 per gallon. You are authorized, therefore, to require the imported bay rum in bulk packages to be stamped to the amount of 8 cents per gallon, and to notify the custom officers at your port to that effect.

Respectfully,

G. W. WILSON, Commissioner.

Mr. JAMES D. GILL, Collector Internal Revenue, Boston, Mass.

(247.)

Stamp tax-Slot machines.

Ruling under which medicinal proprietary articles and perfumery and cosmetics may be sold from slot or vending machines.-Treasury decision 19694 made applicable.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., November 17, 1900. SIR: I have to acknowledge the receipt of your letter of the 15th ultimo, inclosing letter from The Searle & Hereth Company, manufacturing chemists of Chicago, Ill., in which they desire a ruling that aromatic cachous may be sold in 1-cent packages from slot or vending machines, the 1-cent packages before being placed in the vending machine to be taken from a large package which has been duly stamped, the same as has been permitted by regulation in the case of chewing gum. In reply, you are advised that the provisions of Schedule B give the Department greater latitude in making regulations about chewing gum than is permitted in regard to articles mentioned under the headings of medicinal proprietary articles and perfumery and cosmetics. The law

seems to require that all such articles should usually be sold only in stamped packages.

The following ruling was made, however, on July 14, 1898, for the packing and stamping of articles mentioned in Schedule B, other than chewing gum or bottled wine, which retail for less than 5 cents (see T. D. 19694):

Five cents being the lowest retail price mentioned in Schedule B, taxable articles retailing for a less sum may be packed together under one wrapper, band, or other inclosure when the retail price of said packages shall not in the aggregate exceed 5 cents, and a stamp for oneeighth cent shall be affixed on the outside band or wrapper, or other inclosure, in such a manner that the stamp will be wholly destroyed in opening the same.

In such cases each subpackage shall have printed thereon the words "sold from a duly stamped package."

Under the above ruling, taxable articles of medicine, perfumery, etc., retailing for less than 5 cents may be put up as therein directed and stamped, and on destroying the stamp, the subpackages may be detached and placed in a vending or slot machine. This ruling, however, must be strictly followed. Each subpackage must have printed on the outside thereof the words "sold from a duly stamped package."

Respectfully,

G. W. WILSON, Commissioner.

F. E. COYNE, Collector Internal Revenue, Chicago, Ill.

REPORTS.
(81.)

Reports on Form 8.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

To collectors of internal revenue:

Washington, D. C., March 28, 1900.

You are reminded that at the close of this month your first quarterly report on Form 8, pursuant to office letter of January 8, 1900, will be due.

Please furnish the report on or before April 10, 1900, and quarterly thereafter, whether any instruments have or have not been presented to you for action under section 13 of the act of June 13, 1898. If no instruments have been presented during the quarter, please write across the face of the report the words, "No instruments presented during the quarter ended 190—," inserting the proper date after the word

"ended."

In this connection, your attention is called to the following Treasury decisions, viz, No. 19681, dated July 12, 1898; No. 20441, dated December 15, 1898; No. 20585, dated January 18, 1899; No. 20590, dated January 19, 1899; No. 20696, dated February 10, 1899; No. 21023,

dated April 14, 1899; No. 21074, dated April 27, 1899; No. 21153, dated May 15, 1899; No. 21226, dated June 2, 1899; No. 21368, dated July 10, 1899; No. 21420, dated July 24, 1899, and No. 21539, dated August 25, 1899.

(124.)

G. W. WILSON, Commissioner.

Instructions relative to reports on Form 8.

[Int. Rev. Circular No. 569.]

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,
Washington, D. C., May 11, 1900.

To collectors of internal revenue:

As there appears to be a misunderstanding on the part of many collectors regarding the proper manner of making up the quarterly report of instruments stamped, Form 8, the following instructions are hereby issued in relation thereto :

It is important that Book 25 and Form 8 contain a complete record of all instruments post stamped, giving names of parties, date, and description of instrument, when stamped, value of stamps affixed, and penalties remitted or collected. This information will be reported under the proper headings, the value of stamps affixed being shown under the head of "How stamped," and in the last column action regarding penalty will be reported as follows: If collected, insert "Penalty paid, $- "(giving amouut); if remitted, insert "Penalty remitted," or, if twelve months from date of issue have expired and no penalty is paid and no notation is made on the instrument, insert "No notation made.”

Accompanying this circular will be found a blank form (No. 472) of voucher, a supply of which will be duly furnished, which will be used by collectors on and after June 1, 1900.

In all cases of remission of penalty, the party or parties presenting instruments for stamping will be required to sign one of these vouchers, which will be retained by the collector, and at the close of the quarter all of the vouchers executed will be forwarded with the quarterly return, Form 8, to this office. The vouchers should be numbered consecutively to correspond with the entries on Book 25 and Form 8.

Collectors are cautioned that under the law and the regulations of this office they are not authorized in any case to remit the penalty after twelve months from date of issue of the instrument.

All penalties collected on account of post stamping of insruments should be reported on Form 58 of the assessment list for the month in which the collection is made, in order that they may be properly charged and accounted for.

G. W. WILSON, Commissioner.

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