In United States v. Stowell (133 U. S., 1), 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 (32 U. S., 7 Pet., 453, 462, 463), 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 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. Taking the act as a whole, I think the demurrer should be overruled, and it is ordered.

(T. D. 2205.)

Hours for sale of stamps and payment of taxes.

Collectors of internal revenue may close the sale of stamps and payment of taxes before their offices are closed for the day.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

To collectors of internal revenue:

Washington, D. C., May 19, 1915.

In view of the conditions existing in the offices of many collectors, especially in the rush season in June and July, beginning with June 1, 1915, collectors may close to the public the sale of stamps and the payment of taxes not earlier than 3 p. m. daily, and on Saturdays or other days when the office is closed at 1 p. m. by order of the Secretary of the Treasury not earlier than 12 noon, to enable the cashiers to balance up with the bookkeepers before making their daily deposits. The public should be given due notice of any change in the hours for the sale of stamps and payment of taxes.

To accommodate those who may come to make payments after the closing time, a mail box should be provided at the cashier's window for the deposit of such collections. (See T. D. 1728, dated Sept. 28, 1911.)

This order in no wise affects the hours of service required daily of each Government employee, nor the hours that collectors' offices will be open for the transaction of business other than the sale of stamps and payment of taxes.

Approved:

BYRON R. NEWTON,

W. H. OSBORN, Commissioner of Internal Revenue.

Acting Secretary of the Treasury.

(T. D. 2206.)

Narcotic law.

Relief from assessment of 50 per cent penalty of persons who disclosed their liability in the month of March and are now required to register in conformity with a ruling contained in T. D. 2194, classifying synthetic substitutes as coming within the act of December 17, 1914.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., May 25, 1915. SIR: This office is in receipt of a letter under date of May 6, 1915, from a dentist, of Spokane, Wash., stating that on March 16 he made inquiry of the district attorney and a deputy collector as to whether or not novocain was included in the list of preparations requiring registry under the narcotic law. He was unable to secure the information. He then addressed a letter to

this office and was informed that novocain was not held as coming within the scope of the law, pending further investigation, and has recently received from this office copy of a document dated April 26, 1915 (T. D. 2194), regarding synthetic substitutes, and understands that novocain is now considered as coming within the scope of the law. He applied for registry and penalty was demanded.

In view of the fact that this person, by stating in his letter of March 16 that he was using novocain, disclosed his liability in that month and that he offers to make payment of special tax beginning March 1, 1915, you are advised that this disclosure is sufficient to relieve him of the 50 per cent penalty, and registration should be granted. You are directed, therefore, to accept payment of the tax as offered, and issue special-tax stamp and registry number as though the application had been made on or before March 1, 1915. In all similar cases in the future where there is an apparent liability growing out of the sale, distribution, or dispensing of synthetic substitutes for cocaine covered by T. D. 2194, and evidence is presented that an effort was made during the month of March, 1915, to ascertain whether or not persons using these synthetic substitutes were required to register under the provisions of the Harrison narcotic law, where liability was disclosed as above indicated, assessment of 50 per cent penalty will not be made.

Persons applying for registration under the above circumstances should make an inventory of the quantity of synthetic drugs on hand on March 1, 1915, if possible, and if not, at the present time, and hereafter comply with all the provisions of the law and regulations. W. H. OSBORN,

Commissioner of Internal Revenue.

COLLECTOR INTERNAL REVENUE, Tacoma, Wash.

(T. D. 2207.)

Regulations concerning the gauging, marking, branding, and stamping of distilled spirits by rectifiers, under act of March 4, 1915.

[No. 7, Revised-Supplement No. 1.]

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., May 15, 1915.

By the act of March 4, 1915, it is provided

That whenever any cask or package of distilled spirits containing 5 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 Commissioner 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.

Pursuant to and by virtue of the authority of the provision of law above quoted, the following regulations are hereby prescribed:

RECTIFIER'S NOTICE AND RETURN, FORM 122.

Whenever any rectifier proposes to empty any spirits (either in fact, or, as in the case of mixing in the original package, constructively) for the purpose of rectifying the same, he must, before emptying any package for that purpose, or before compounding spirits in the package, give notice, in duplicate, of his intention to the collector of the district, on Form 122, revised May 1, 1915, which is hereby prescribed for that purpose, and after being authorized by the collector, in part 2 of the form, must gauge for rectification each package included in the notice, and make return thereof on said form.

The gauge will be made by the same means and under the same regulations as to methods as are now in force in the Internal Revenue Service, as set forth in the Gaugers' Manual, Gaugers' Weighing Manual, and No. 7, revised July 10, 1914.

The rectifier will make a careful gauge and inspection of each package of spirits described in the notice, cut out slips from the stamps on said packages as directed in regulations No. 7, revised, make a detailed report of such gauge and inspection in the columns under the heading "Return of spirits gauged," and after filling up and signing the certificate at the foot of the form he will deliver the same to the collector as soon as practicable, with the slips of stamps securely attached to one of the duplicates, in such manner that they can be readily examined, and the collector will forward the latter to the Commissioner of Internal Revenue.

When a stamp has been lost or mutilated so that the required portion thereof can not be returned, an affidavit setting forth all the facts in the case will be made by the rectifier, attached to the form, and delivered therewith to the collector. If the collector is satisfied that the statements are true, he will attach his certificate to that effect and forward the affidavit and certificate, with the Form. 122, to the Commissioner of Internal Revenue.

The regulations on pages 188 and 189 of No. 7, revised July 10, 1914, under the heading "Detention or seizure of spirits and assessment of tax in case of discrepancy between the marks and brands on packages and the actual taxable contents" are hereby amended by substituting the words "seven-tenths of one proof gallon" in lieu of the words "one proof gallon," wherever the latter occur therein, so as to require the action prescribed therein whenever the excess in any distiller's original package amounts to seven-tenths of 1 proof gallon or upward.

Accordingly, when an excess is shown on the gauge for rectification of any distiller's original package amounting to seven-tenths of 1 proof gallon or upward, it shall be the duty of the rectifier to set aside the package and to notify at once the collector of the district of the fact of the excess. The collector will thereupon require a careful gauge to be made of the contents of the package by at least one competent gauging officer, if practicable, and if the excess as found by him amounts to seven-tenths of 1 proof gallon or upward, the taxable excess will be estimated by the collector, who will proceed against the package under said regulations as amended. In general, the regulations pertaining to the subject on pages 188 and 189 of No. 7, revised July 10, 1914, as above amended, will be observed in all such cases.

In listing on Form 122 packages containing liqueurs, cordials, or similar compounds, domestic and imported, taxable under the act of October 22, 1914, rectifiers will note in the margin the fact that the required stamps at the rate of 24 cents per gallon were affixed to the packages before the contents were dumped.

GAUGING, MARKING, BRANDING, AND STAMPING OF SPIRITS BY RECTIFIERS AFTER RECTIFICATION.

As soon as the process of rectification (including compounding in the packages) is complete it shall be the duty of the rectifier to draw off the spirits into merchantable packages, when not already so contained, and to ascertain and report the true contents of each cask or package in wine gallons and also in proof gallons. In the use of casks or packages for this purpose the regulations relating to material, size, and shape of packages for containing distilled spirits will be observed, as well as those relating to the wantage allowable in filling packages

after rectification, as set forth in No. 7, revised, and the gauge will be made by the rectifier, using the same means and under the same regulations as to methods as those now in force in the Internal Revenue Service.

It shall also be the duty of the rectifier to mark, brand, and stamp the casks and packages filled and gauged by him, following the requirements set forth on pages 178-182 of No. 7, revised July 10, 1914, except that the duties devolving on the gauger under those regulations are hereby transferred to and made the duties of the rectifier.

AFFIXING AND CANCELLATION OF STAMPS.

The rectifier having determined the contents of the packages and marked the same on the bung stave thereof, will immediately (or as soon as the stamps are received from the collector) affix to the stamp head of the cask or package the appropriate stamp for rectified spirits and cancel the same as directed below, having first filled out, fully and correctly, each and every blank space in the stamps and in the stubs thereof, with the exception of the blank space for the signature of the gauger, which may be left unfilled. The rectifier must use great care in detaching the stamp to see that the precise number of coupons wanted is taken and no more. As soon as a book is exhausted it must be returned to the collector, as the issue of stamps to the rectifier will stop with the failure to send in the stubs of the second preceding book issued to him. The present edition of stamps for rectified spirits will be utilized until the same is exhausted, the signature of the United States gauger being omitted from the stamp.

Affixing. The stamps are to be securely affixed to a smooth surface of the head, which must not have been previously painted or covered with any substance. Transparent varnish, or any other adhesive material which will cause the stamp to stick securely and permanently, may be used for that purpose. Each stamp will be further secured by eight tacks placed one in each corner, one in each side near the middle, and two near the center, one above and the other below the portion to be cut out in case it becomes necessary to return a portion with Form 92 or 122.

Cancellation. The stamp having been affixed, it must be canceled immediately. For this purpose the rectifier will use a stencil plate of brass or copper, in which will be cut not less than five fine parallel waved lines, long enough to extend not less than three-quarters of an inch beyond each side of the stamp on the wood of the cask, and the name and place of business of the rectifier must be cut on opposite ends of the plate, perpendicular to the waved lines, the name to be above the space for the stamps and the place of business below..