articles included within the term bric-a-brac, by whatever process made, when such articles are made wholly or in chief value of that substance which is commonly or commercially known as bronze, whether such articles are modern or antique, and whether originals, replicas, copies, or reproductions, which are of such a character that the use to which under general custom or ordinary usage they should be put (irrespective of the use to which the purchaser intends to put them) is entirely or principally an ornamental or decorative one as distinguished from a useful or utilitarian one.

The term "bronzes" does not include (a) architectural bronzes, (b) such articles as are in the nature of material, work, or labor furnished in connection with the erection or construction of a building and which form an integral part thereof, (c) medals, memorial or commemorative tablets, or (d) such articles as are designed for a primarily useful purpose. The sale to an artist by a foundry of a casting made from the artist's model shall not be subject to the tax. Section 905. Articles made of, or ornamented, mounted or fitted with, precious metals or imitations thereof.

It has been suggested that the interpretations placed on this provision by the department should be confirmed by legislation. The department has held that Congress did not intend to tax such articles as railroad coaches or coffins, although such articles might have fixtures of precious metals. The department has also ruled that the term "precious metals" was intended to include only silver, gold, platinum or metals of greater value and that the term "imitation thereof" was intended to include only platings or alloys of these materials.

It has been suggested that this change could be accomplished by an amendment in substantially the following form:

Strike out the first paragraph of section 905 and insert:

SEC. 905. That on and after April 1, 1919, there shall be levied, assessed, collected, and paid (in lieu of the tax imposed by subdivision (e) of section 600 of the Revenue Act of 1917) upon all articles commonly or commercially known as jewelry, whether real or imitation; pearls, precious and semiprecious stones, and imitation thereof; articles (designed for personal use or adornment or for ornament or display in connection with the home) made of, or ornamented, mounted or fitted with, precious metals or imitations thereof or ivory (not including surgical instruments, articles made of imitation ivory or ornamented or overlaid with gold or silver leaf or paint, such as picture frames, books, christmas cards, glassware, china and pottery); watches; clocks, opera glasses; lorgnettes, marine glasses; field glasses; and binoculars; upon any of the above when sold by or for a dealer or his estate for consumption or use, a tax equivalent to 5 per centum of the price for which so sold.

TITLE X-SPECIAL TAXES.

Section 1000. Extension of time for filing capital stock tax return.

Many corporations have of necessity been granted extensions of time in filing income and excess-profits and war-profits tax returns and claim the same data is used in preparing capital stock tax returns, and for that reason insist that it is impossible to properly file the capital stock tax return within the prescribed time under the law. The difficulty seems to be due to the fact that the capital stock tax return requires under Exhibit C the net income reported for the Federal income tax, and until this data is available Exhibit C can not be computed. Many requests for extension of time in filing the capital stock tax return are received from foreign corporations whose principal offices are located outside of the United States.

It has been suggested that the commissioner should be authorized to grant an extension of time for filing a capital stock tax return whenever an extension of time is granted to the same corporation for filing its income and excess-profits and war-profits tax return.

It has been suggested that this change could be accomplished by an amendment in substantially the following form:

Amend section 1000 by adding a new subdivision as follows:

(e) The Commissioner may grant a reasonable extension of time for filing returns under this section whenever in his judgment good cause exists and shall keep a record of every such extension and the reason therefor. Except in the case of taxpayers who are abroad, no such extension shall be for more than six months.

Section 1001. (12) Dealers in malt liquors containing one-half per centum or more of alcohol liable to $1,000 special tax.

This paragraph of the law imposes a special tax of $1,000 on every person carrying on the business of a brewer, distiller, wholesale liquor dealer, retail liquor dealer, wholesale dealer in malt liquor, retail dealer in malt liquor, or manufacturer of stills, as defined in section 3244 as amended, and section 3247 of the Revised Statutes, in any State, Territory, or district of the United States contrary to the laws of such State, Territory, or district, or in any place therein in which carrying on such business is prohibited by local or municipal law.

It has been suggested that the definitions in the Revised Statutes are not dependent upon the alcoholic content of the liquor produced or sold by persons engaged in the occupations which are defined, and that under the literal language of the Revised Statutes and of this section it is necessary, in order that a given business may be regarded as prohibited by local or municipal law, that such law prohibit the sale of any liquor whatever, even though absolutely non

alcoholic. The amendment indicated for the carrying out of this suggestion would be to specify that the tax of $1,000 should apply to those persons engaged in the specified occupations who sell liquor containing one-half of 1 per cent or more of alcohol by volume, or who manufacture or sell stills of a kind or for a purpose in violation of the laws of the United States or of any State, Territory, or district.

It has been suggested that these changes could be accomplished by an amendment in substantially the following form:

Strike out subdivision (12) of section 1001 and insert:

Every person carrying on the business of a brewer, distiller, wholesale liquor dealer, retail liquor dealer, wholesale dealer in malt liquor, retail dealer in malt liquor, or manufacturer of stills, as defined in section 3244, as amended, and section 3247 of the Revised Statutes, and who sells liquor containing one-half of one per cent or more of alcohol by volume, or who manufactures or sells stills, worms, or condensers or other apparatus designed for distilling liquor, or for a purpose in any State, Territory, or district of the United States contrary to in violation of the laws of such the United States or any State, Territory or district of the United States or in any place therein in which the carrying on of such business is prohibited by Federal, State, local, or municipal law, shall pay, in addition to all other taxes, special or otherwise, imposed by existing law or by this Act, $1,000 for each of such occupations when so prohibited.

Section 1002. Receipt in lieu of a special tax stamp imposed in the case of (1) manufacturers of tobacco whose annual sales exceed 200,000 pounds, (2) manufacturers of cigars whose annual sales exceed 400,000 cigars, and (3) all manufacturers of cigarettes.

The special-stamp tax upon manufacturers of tobacco whose annual sales exceed 200,000 pounds is $24 plus an additional amount equal to 16 cents per thousand pounds or fraction thereof in respect to the excess of 200,000 pounds and in the case of manufacturers of cigars whose annual sales exceed 400,000 cigars is $24 plus an amount equivalent to 10 cents per thousand cigars or fraction thereof in respect to the excess of 400,000 cigars, and in the case of manufacturers of cigars in an amount computed at the rate of 6 cents for every 10,000 cigarettes or fraction thereof. The result is that it is necessary for the Treasury Department to print a very few special tax stamps for such manufacturers of many denominations and at a considerable expense. A receipt could be issued in each of such cases which could be placed in the place of business of such manufacturer in the same manner in which a stamp is now placed there and which would answer the same purpose at much less expense to the Govern

ment.

It has been suggested that these changes could be accomplished by amendments in substantially the following form:

(1) Strike out the fifth paragraph of section 1002 and insert:

Manufacturers of tobacco whose annual sales exceed two hundred thousand pounds shall each pay $24, and at the rate of 16 cents per thousand pounds, or fraction thereof, in respect to the excess over two hundred thousand pounds, but a receipt in lieu of a special tax stamp may be issued to denote the payment of such tax;

(2) Strike out the tenth paragraph of section 1002 and insert:

Manufacturers of cigars whose annual sales exceed four hundred thousand cigars shall each pay $24, and at the rate of 10 cents per thousand cigars, or fraction thereof, in respect to the excess over four hundred thousand cigars, but a receipt in lieu of a special tax stamp may be issued to denote the payment of such tax;

(3) Strike out the eleventh paragraph of section 1002 and insert:

Manufacturers of cigarettes, including small cigars weighing not more than three pounds per thousand shall each pay at the rate of 6 cents for every ten thousand cigarettes, or fraction thereof, but a receipt in lieu of a special tax stamp may be issued to denote the payment of such tax.

TITLE XIII-GENERAL ADMINISTRATIVE PROVISIONS.

Title XIII (new section). Making dealers in stills subject to fine

and imprisonment if they engage in such business without payment of the special tax which has been suggested under section 1322.

The suggestion that dealers in stills should be made subject to special tax has been accompanied by the suggestion that section 3242a Revised Statutes should be amended to make the penalties provided apply to the proposed class of taxpayers.

It has been suggested that this change could be accomplished by an amendment in substantially the following form:

Amend the Revenue Act of 1918 by adding a new section as follows: SEC. 1321. That section 3242a of the Revised Statutes, as amended, is hereby amended to read as follows:

"SEC. 3242a. That any person who shall carry on the business of a rectifier, wholesale liquor dealer, retail liquor dealer, wholesale dealer in malt liquors, retail dealer in malt liquors, or manufacturer of stills, or dealer in stills, without having paid the special tax as required by law, or who shall carry on the business of a distiller without having given bond as required by law, or who shall engage in or carry on the business of a distiller with intent to defraud the United States of the tax on the spirits distilled by him, or any part thereof, shall, for every such offense, be fined not less than $100 nor more than $5,000 and imprisoned not less than thirty days nor more than two years. Title XIII (new section). Dealers in stills made subject to special tax of $25.

It has been suggested that dealers in stills should be made subject to a special tax of $25 and that for the more effective enforcement of prohibition the term "still" should be amplified by including the words "condenser, distilling apparatus, or any apparatus designed to be used for the purpose of distilling." It has also been suggested that, under this section of the law, stills to be used for scientific or other legitimate purposes should be specifically exempt from the operation of this section; and that provision should be made in the law requiring all stills and similar apparatus to be marked and stamped to evidence the payment of the tax.