of

municipality therein, or of the District of Columbia, or any insular possession of the United States, as shall be charged with the enforcement of any law or municipal ordinance regulating the sale, prescribing, dispensing, dealing in, or distribution of the aforesaid drugs. Each collector of internal revenue is hereby authorized to furnish, upon written request, certified copies any of the said statements or returns filed in his office to any of such officials of any State or Territory or organized municipality therein, or the District of Columbia, or any insular possession of the United States, as shall be entitled to inspect the said statements or returns filed in the office of the said collector, upon the payment of a fee of $1 for each one hundred words or fraction thereof in the copy or copies so requested. Any person who shall disclose the information contained in the said statements or returns or in the said duplicate-order forms, except as herein expressly provided, and except for the purpose of enforcing the provisions of this Act, or for the purpose of enforcing any law of any State or Territory or the District of Columbia, or any insular possession of the United States, or ordinance of any organized municipality therein, regulating the sale, prescribing, dispensing, dealing in, or distribution of the aforesaid drugs, shall, on conviction, be fined or imprisoned as provided by section nine of this Act. And collectors of internal revenue are hereby authorized to furnish upon written request, to any person, a certified copy of the names of any or all persons who may be listed in their respective collection districts as special-tax payers under the provisions of this Act, upon payment of a fee of $1 for each one hundred names or fraction thereof in the copy so requested. [38 Stat. L. 788.]

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SEC. 6. [Preparations containing limited quantities of opium not affected by Act.] That the provisions of this Act shall not be construed to apply to the sale, distribution, giving away, dispensing, or possession of preparations and remedies which do not contain more than two grains of opium, or more than one-fourth of a grain of morphine, or more than one-eighth of a grain of heroin, or more than one grain of codeine, or any salt or derivative of any of them in one fluid ounce, or, if a solid or semisolid preparation, in one avoirdupois ounce; or to liniments, ointments, or other preparations which are prepared for external use only, except liniments, ointments, and other preparations which contain cocaine or any of its salts or alpha or beta eucaine or any of their salts or any synthetic substitute for them: Provided, That such remedies and preparations are sold, distributed, given away, dispensed, or possessed as medicines and not for the purpose of evading the intentions and provisions of this Act. The provisions of this Act shall not apply to decocainized coca leaves or preparations made therefrom, or to other preparations of coca leaves which do not contain cocaine. [38 Stat. L. 789.]

SEC. 7. [Collection, etc., of special taxes — laws regulating.] That all laws relating to the assessment, collection, remission, and refund of internalrevenue taxes, including section thirty-two hundred and twenty-nine of the Revised Statutes of the United States, so far as applicable to and not inconsistent with the provisions of this Act, are hereby extended and made applicable to the special taxes imposed by this Act. [38 Stat. L. 789.] For R. S. sec. 3229, see 3 Fed. Stat. Annot. 604.

SEC. 8. [Violations of Act - evidence- pleading exemptions- burden of proof.] That it shall be unlawful for any person not registered under

the provisions of this Act, and who has not paid the special tax provided for by this Act, to have in his possession or under his control any of the aforesaid drugs; and such possession or control shall be presumptive evidence of a violation of this section, and also of a violation of the provisions of section one of this Act: Provided, That this section shall not apply to any employee of a registered person, or to a nurse under the supervision of a physician, dentist, or veterinary surgeon registered under this Act, having such possession or control by virtue of his employment or occupation and not on his own account; or to the possession of any of the aforesaid drugs which has or have been prescribed in good faith by a physician, dentist, or veterinary surgeon registered under this Act; or to any United States, State, county, municipal, District, Territorial, or insular officer or official who has possession of any said drugs, by reason of his official duties, or to a warehouseman holding possession for a person registered and who has paid the taxes under this Act; or to common carriers engaged in transporting such drugs: Provided further, That it shall not be necessary to negative any of the aforesaid exemptions in any complaint, information, indictment, or other writ or proceeding laid or brought under this Act; and the burden of proof of any such exemption shall be upon the defendant. [38 Stat. L. 789.]

Constitutionality. - In United States v. Brown (W. D. Wash. 1915) 224 Fed. 135, it was contended that section 8 was unconstitutional in that it was an attempt on the part of Congress to encroach upon the police power of the several states; that the only right Congress had to control the sale of a commodity, within the provisions of the constitution, was (a) to regulate commerce and (b) the right of taxation, and that neither of these rights was invoked by section 8. Quoting the section the court said: "By this act the drug became an 'outlaw' in the country, its presence Congress has the right to trace, and has the power to punish any person in whose possession this outlawed' article may be found. The possession of such drug or control thereof is made presumptive evidence of the unlawful importation, manufacture, etc., as well as an obligation to pay the special tax provided by the act, and a failure to register and pay the tax as provided in section 1 would be a fraud upon the United States, in that it deprived the government of the revenues provided by the act. United States v. Stowell, 133 U. S. 1, 10 Sup. Ct. 244, 33 L. ed. 555, the court says: 'By the now settled doctrine of this court (notwithstanding the opposing dictum of Mr. Justice McLean, in United States v. 84 Boxes of Sugar, 7 Pet. [32 U. S.] 453, 462, 463 [8 L. ed. 745]) statutes to prevent frauds upon the revenue are considered as enacted for the public good and to suppress a public wrong, and therefore, although they impose penalties or forfeitures, not to be construed, like penal laws generally, strictly in favor of the defendant; but they are to be fairly and reasonably construed, so as to carry out the intention of the legislature.' Congress having the power to exclude the drug entirely from the United States, and the right to regulate its relation

In

to interstate commerce, and to levy a tax, must be held to have the right to make it unlawful for any person who has not complied with the provisions of the act, by registration or paying a tax, to have in his possession this 'outlawed' article. The act must be construed as a whole, and force given to every part when this can be done."

To the same effect, see United States v. Charter (N. D. Ohio 1915) 227 Fed. 331.

Persons affected. In United States v. Wilson, (W. D. Tenn. 1915) 225 Fed. 82, the sole question determined was to whom the clause "any person not registered under the provisions of this act and who has not paid the tax" in the eighth section referred. The court said: "Clearly it refers to, and at least includes, those doing the things specifically named in the first section. Does it refer to and include others doing things not specifically named in the act, viz., those having in their possession or under their control the drugs named for their personal consumption? It seems to me that to so hold would be for the court to enlarge the list of those whom Congress required to register and pay the special tax. To that event it would be an amendment of the act. This is not the function of the court. If Congress had intended to require persons to register who had in their possession or under their control drugs for any purpose other than that stated in the act, it would seem that it would have been a simple matter to have said so. It is clear to my mind that the language quoted from the eighth section, supra, when read in connection with the first section of the act, refers only to those mentioned in the last-named section, and however desirable it may be to have that list enlarged, the court is without authority to do it. It is, in my judgment, the pur

pose of section 8 to make the mere possession of the drugs mentioned in the act by any of those specified in the first section presumptive evidence that such parties had not registered, nor paid the special tax as required therein, and that it was not intended to enlarge the class that is required to register and pay the tax under the first section, nor is it, in my judgment, susceptible of such construction. The section establishes a rule of evidence, in that, upon the government's proving that a defendant was doing any of those things mentioned in section 1, clause 1, of the act, and, further, that a narcotic was found in his possession, he would be presumptively guilty of violating the first section of the act; then the burden of proof shifts, and is upon the defendant to show affirmatively that he is not one of the class mentioned in section 1, required to register, or, if so,

that he had registered and paid the special tax."

To the same effect is United States v. Jin Fuey Moy (W. D. Pa. 1915) 225 Fed. 1003, wherein the court said: "In reading the eighth section in connection with the remaining sections of the act of Congress, when it provides that it shall be unlawful for any person not registered under the provisions of this act to have in his possession certain drugs, I think that the word 'person' should be held to refer to the persons with whom the act of Congress is dealing; that is, the persons who are required to register and pay the special tax in order to import, produce, manufacture, deal in, dispense, sell, or distribute."

See further to the same effect United States v. Woods (D. C. Mont. 1915), 224 Fed. 278..

SEC. 9. [Penalties.] That any person who violates or fails to comply with any of the requirements of this Act shall, on conviction, be fined not more than $2,000 or be imprisoned not more than five years, or both, in the discretion of the court. [38 Stat. L. 789.]

Violation a felony. This section, read in connection with section 335 of the Federal Penal, Code (1909 Supp. Fed. Stat.

Annot. 495), makes any violation of the act a felony. United States v. Woods, (D. C. Mont. 1915) 224 Fed. 278.

SEC. 10. [Enforcement of provisions appointment of officers.] That the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, is authorized to appoint such agents, deputy collectors, inspectors, chemists, assistant chemists, clerks, and messengers in the field and in the Bureau of Internal Revenue in the District of Columbia as may be necessary to enforce the provisions of this Act. [38 Stat. L. 789.]

SEC. 11. [Appropriation for enforcement of provisions.] That the sum of $150,000, or so much thereof as may be necessary, be, and hereby is, appropriated, out of any moneys in the Treasury not otherwise appropriated, for the purpose of carrying into effect the provisions of this Act. [38 Stat. L. 789.]

SEC. 12. [Effect as amending or repealing previous acts.] That nothing contained in this Act shall be construed to impair, alter, amend, or repeal any of the provisions of the Act of Congress approved June thirtieth, nineteen hundred and six, entitled "An Act for preventing the manufacture, sale, or transportation of adulterated or misbranded, or poisonous, or deleterious foods, drugs, medicines, and liquors, and for regulating traffic therein, and for other purposes," and any amendment thereof, or of the Act approved February ninth, nineteen hundred and nine, entitled "An Act to prohibit the importation and use of opium for other than medicinal purposes," and any amendment thereof. [38 Stat. L. 790.]

For the Act of June 30, 1906, see 1909 Supp. Fed. Stat. Annot. 136. For the Act of Feb. 9, 1909, see 1909 Supp. Fed. Stat. Annot. 180. 108

An Act To amend section thirty-two hundred and forty-six of the Revised Statutes of the United States, as amended by section five of the Act of March first, eighteen hundred and seventy-nine.

[Act of March 3, 1915, Ch. 78.]

[Special taxes- persons exempt from payment.] That section thirty-two hundred and forty-six of the Revised Statutes of the United States, as amended by section five of the Act of March first, eighteen hundred and seventy-nine (Twentieth Statutes, page three hundred and twenty-seven), be, and the same is hereby, amended by adding thereto the following:

"Nor shall any special tax be imposed upon manufacturing chemists or flavoring extract manufacturers for recovering tax-paid alcohol or spirituous liquors from dregs or marc of percolation or extraction, if said recovered alcohol or spirituous liquors be again used in the manufacture of flavoring extracts."

So that said section thirty-two hundred and forty-six of the Revised Statutes of the United States shall read as follows:

"Sec. 3246. Nothing in this chapter shall be construed to impose a special tax upon vintners who sell wine of their own growth, or manufacturers who sell wine produced from grapes grown by others, at the place where the same is made or at the general business office of such vintner or manufacturer: Provided, That no vintner or manufacturer shall have more than one office for the sale of such wine that shall be exempt from special tax under this Act; nor shall any special tax be imposed upon apothecaries as to wines or spirituous liquors which they use exclusively in the preparation or makingup of medicines.

"Nor shall any special tax be imposed upon manufacturing chemists or flavoring extract manufacturers for recovering tax-paid alcohol or spirituous liquors from dregs or marc of percolation or extraction if said recovered alcohol or spirituous liquors be again used in the manufacture of flavoring extracts." [38 Stat. L. 893.]

For R. S. 3246, as it read prior to this amendment, see 3 Fed. Stat. Annot. 622.

An Act To provide for the allowance of drawback of tax on articles shipped to the island of Porto Rico or to the Philippine Islands.

[Act of March 4, 1915, Ch. 164.]

[Allowance of drawback of tax- goods shipped to Porto Rico or Philippine Islands.] That all provisions of existing laws for the allowance of drawback of internal-revenue tax on articles exported from the United States are, so far as applicable, hereby extended to like articles upon which an internalrevenue tax has been paid when shipped from the United States to the island of Porto Rico or to the Philippine Islands. [38 Stat. L. 1189.]

Joint Resolution To refund under certain conditions a portion of the offers in compromise for failure to make the return required under the Act of October third, nineteen hundred and thirteen, said offers in compromise having been covered into the Treasury, and for other purposes.

[Resolution of March 4, 1915, No. 10.]

[Income tax returns — refund of penalties imposed for failure to make.] That the Secretary of the Treasury, on application to the Commis

sioner of Internal Revenue, be, and is hereby, authorized to refund, out of any money in the Treasury not otherwise appropriated, unto corporations all amounts paid by them into the Treasury of the United States in compromise by such corporations on account of their failure to make report under the requirements of the income-tax law for the income-tax year nineteen hundred and thirteen, so paid in excess of $10; and the Secretary of the Treasury is further authorized to likewise refund as to said tax year any and all amounts exacted and paid into the Treasury of the United States as penalties by corporations required by the law to make income-tax return, but which in their nature are not subject to income tax; and the Secretary is further authorized to likewise refund as to same tax year any and all amounts paid by individuals as penalties on account of their failure to make income-tax returns for said year nineteen hundred and thirteen, as required by law, so paid in excess of $5. [38 Stat. L. 1225.]

For the Income Tax law, see 1914 Supp. Fed. Stat. Annot. 185.

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[SEC. 1.] [Distilled spirits· by whom gauged, branded, etc.] That whenever any cask or package of distilled spirits containing five wine gallons or more is dumped by a rectifier for rectification or filled and received from rectification for sale, shipment, or delivery the same shall be gauged, marked, branded and stamped by a United States gauger; but the Commis sioner of Internal Revenue may by regulations, approved by the Secretary of the Treasury, provide that the gauging, marking, stamping and branding of such packages so dumped for rectification, or received therefrom, be done by the rectifier instead of by a United States gauger. [38 Stat. L. 1017.] This is from the Legislative, Executive and Judicial Appropriation Act of March 4, 1915, ch. 141.

Joint Resolution Extending the provisions of the Act entitled "An Act to increase the internal revenue, and for other purposes," approved October twenty-second, nineteen hundred and fourteen, to December thirty-first, nineteen hundred and sixteen.

[Resolution of Dec. 17, 1915.]

[SEC. 1.] [War revenue Act of Oct. 22, 1914, extended.] That the provisions of the Act entitled "An Act to increase the internal revenue, and for other purposes," approved October twenty-second, nineteen hundred and fourteen (Statutes at Large, volume thirty-eight, pages seven hundred and fortyfive to seven hundred and sixty-four, inclusive), are continued in full force and effect until and including December thirty-first, nineteen hundred and sixteen.

For the Act of Oct. 22, 1914, see supra, p. 80.

SEC. 2. [Appropriation for salaries and expenses- availability.] That the appropriation for salaries and expenses of collectors of internal revenue, deputy collectors, surveyors, clerks, messengers, and janitors in internalrevenue offices for the fiscal year nineteen hundred and sixteen is made