were withdrawn for exportation, a clearance certificate and a detailed report of the gauger, which report shall show the capacity of each cask in wine-gallons, and the contents thereof in wine-gallons, proof-gallons, and taxable gallons. Upon receipt of the certificate and report, and upon payment of tax on deficiency, if any, the collector of internal revenue shall cancel the transportation bond. The bond required to be given for the landing at a foreign port of distilled spirits shall be cancelled upon the presentation of satisfactory proof and certificates that said distilled spirits have been landed at the port of destination named in the bill of lading or any other port without the jurisdiction of the United States or upon satisfactory proof that after shipment the same were lost at sea without fault or neglect of the owner or shipper thereof. And whenever a distiller of spirits in bond shall desire to change the packages in which the same is contained in order to export them, the Commissioner of Internal Revenue shall be authorized, under regulations to be prescribed by him, and upon the execution of proper bonds with sufficient sureties, to permit the withdrawal of so much spirits from bond and in new packages as the distiller shall desire to export as aforesaid. [18 Stat. L. 64.]

This is from the Act of June 9, 1874, ch. 259, sec. 1, 18 Stat. L. 64, entitled "An act to facilitate the exportation of distilled spirits, and amendatory of the acts in relation thereto," as amended by Act of March 1, 1879, ch. 125, sec. 10, 20 Stat. L. 342. The latter Act added after the word "therein," the words "and for the due performance on the part of the exporter or owner at the port of export of all the requirements in regard to notice of export, entry, and the giving of bond hereinafter specified; " and also the closing clause, beginning" and whenever a distiller of spirits," etc. See note to R. S. sec. 3330.

SEC. 2. [Expense of stamp to be ten cents.] That on and after the first day of July, eighteen hundred and seventy-four, for the expense of providing and affixing the stamps to each cask containing distilled spirits for exportation, there shall be charged ten cents for each stamp instead of twenty-five cents as now required by law. [18 Stat. L. 64.]

This is from the Act of June 9, 1874, ch. 259, sec. 2, 18 Stat. L. 64, above mentioned. See note to R. S. sec. 3330.

An act authorizing an allowance for loss by leakage or casualty of spirits withdrawn from distillery warehouses for exportation.

[Act of Dec. 20, 1879, ch. 1, 21 Stat. L. 59.]

[SEC. 1.] [Allowance for leakage, etc., on spirits withdrawn for exportation.] That where spirits are withdrawn from distillery warehouses for exportation according to law, it shall be lawful, under such rules and regulations and limitations as shall be prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, for an allowance to be made for leakage or loss by any unavoidable accident, and without any fraud or negligence of the distiller, owner, exporter, carrier, or their agents or employees, occurring during transportation from a distillery warehouse to the port of export; nor shall any assessment be collected for such loss or leakage where the same has not been paid on distilled spirits exported since the first day of May, eighteen hundred and seventy-eight. [21 Stat. L. 59.]

See note to R. S. sec. 3330.

SEC. 2. [To extent of excessive insurance, such tax not to be remitted.] That where the spirits provided for in the preceding section are covered by a valid claim of insurance in excess of the market value thereof, exclusive of the tax, the tax upon such spirits shall not be remitted to the extent of such excessive insurance. [21 Stat. L. 59.]

Taxes on spirits accidentally lost, see supra, p. 599.

Allowance for leakage and loss generally, see supra, p. 668.

Allowance for loss on transportation to manufacturing warehouse, see supra, p. 668. See note to R. S. sec. 3330.

SEC. 11. [Imported liquors to be placed in public stores, inspected, and stamped wholesale dealers filling casks.] That all distilled spirits, wines, and malt liquors, imported in pipes, hogsheads, tierces, barrels, casks, or other similar packages, shall be first placed in public store or bonded warehouse, and shall not be removed therefrom until the same shall have been inspected, marked, and branded by a United States customs-gauger, and a stamp affixed to each package, indicating the date. and particulars of such inspection; and the Secretary of the Treasury is hereby authorized to prescribe the form of, and provide, the requisite stamps, and to make all regulations which he may deem necessary and proper for carrying the foregoing requirements into effect. Any pipe, hogshead, tierce, barrel, cask, or other package withdrawn from public store or bonded warehouse after the thirtieth day of June, eighteen hundred and seventy-nine, purporting to contain imported liquor, found without having thereon the stamp hereby required, shall be, with its contents, forfeited to the United States; and whenever any cask or package of imported distilled spirits of not less than five wine-gallons is filled for shipment, sale, or delivery on the premises of any wholesale liquor-dealer, the same shall be stamped with a special stamp for imported spirits, under such rules and regulations as the Commissioner of Internal Revenue has prescribed, or may hereafter prescribe, in the case of domestic distilled spirits. [20 Stat. L. 342.]

This and sections 12, 13, following, are from the Act of March 1, 1879, ch. 125, entitled "An act to amend the laws relating to internal revenuę.”

SEC. 12. [Effacing stamps on emptying packages - penalties.] That every person who empties or draws off, or causes to be emptied or drawn off, the contents of any package of imported liquors stamped as above required, shall, at the time of such emptying, efface, obliterate, and destroy the stamp thereon, and also all other marks or brands which shall have been placed thereon in accordance with the law or regulations concerning imported liquors; every cask or other package from which the stamp for imported liquors required by this act to be placed thereon shall not be effaced, obliterated, or destroyed, on emptying such package, shall be forfeited, and the same may be seized by any officer of internal revenue wherever found; and all the provisions and penalties of section thirty-three hundred and twenty-four of the Revised Statutes of the United States, relating to empty casks or packages from which the marks, brands, or stamps have not been effaced or obliterated, and relating to the removal of stamps from packages, and to having in possession any stamps so removed, shall apply to the stamps for imported spirits

herein provided for, and to the casks or other packages on which such stamps shall have been used. [20 Stat. L. 342.]

As originally enacted this section contained after the words " or regulations concerning imported liquors" the words, "and no cask or other package, such as is hereinbefore mentioned, in which distilled spirits, wines, or malt liquors have been imported, shall be used to contain domestic distilled spirits, under penalty of the forfeiture of such re-used cask or package and the contents thereof." These words were stricken out by Act of May 28, 1880, ch. 108, sec. 12, 21 Stat. L. 148. Effacing stamps on emptying packages of distilled spirits, see section 3324, supra, p. 689.

See note to section 11, supra.

For the precise and statutory description of the offense of removing stamps from packages of imported liquors, or of having in possession stamps so removed, recourse must be had to the words of section 3324, supra, as there is nothing in this statute showing an intention to qualify their original meaning. U. S. v. Spiegel, (1886) 116 U. S. 270.

A stamp once in use may have accidentally fallen off the package, yet afterwards to have it in possession is an offense under section 3324, supra, but it is not an offense under this statute. "To have in possession stamps that have been removed, without at the time of removal having been defaced and destroyed, is an offense under both laws, one in the case of domestic distilled spirits, the other in that of imported liquors. The removal, therefore, which describes a removed stamp, possession of which is thus made unlawful, must be a designed removal from the package by human agency, without defacing and destroying it at the time; such removal as by the first division of the described offenses, constitutes the guilty act of the person removing it. It is the possession of such a stamp, so removed as aforesaid,' in the language of the clause defining the offense, that must be shown to constitute guilt; that is, possession of a stamp,

not merely once used and afterwards found and taken into possession, but possession of a stamp, which some person, although he may be unknown, has removed intentionally and by design, and failed, by neglect or otherwise, at the time of removal, to deface and destroy. So to remove such a stamp is one offense; to aid and assist in such removal is another; the third is, to have in possession such a stamp, so removed as aforesaid; and these are all of that class of offences embraced by the 12th section of the Act of March 1, 1879." U. S. v. Spiegel, (1886) 116 U. S. 275.

6

An indictment charging the removal of stamps without defacing them, under section 3324, supra, need not state that the spirits contained in the casks were of domestic manufacture, as, by this statute, the prohibition is made applicable to imported spirits as well. U. S. v. Bayaud, (1883) 16 Fed. Rep. 376.

For construction of the clause stricken out by section 12 of the Act of May 28, 1880, see U. S. v. Half Barrel, (1879) 6 Sawy. (U. S.) 63, 27 Fed. Cas. No. 15,931; U. S. v. TwentyThree Gallons Distilled Spirits, (1879) 5 Sawy. (U. S.) 594.

SEC. 13. [Penalty for dealing in or using empty imported packages with stamps remaining thereon, or for having, etc., imitation packages.] That if any person shall purchase or sell, with the imported-liquor stamp herein required remaining thereon, or any of the marks or brands which. shall have been placed thereon in accordance with the laws or regulations concerning imported liquors remaining thereon, any cask or other package, after the same has been once used to contain imported liquors and has been emptied; or if any person shall use or have in possession such cask or package, with any imitation of such marks or brands, for the purpose of placing domestic distilled spirits therein for sale; every such cask or package, with its contents, if any, shall be forfeited to the United States. And every such person who shall violate any of the provisions. of this section shall be liable to a penalty of two hundred dollars for every such cask or package so purchased, sold, used, or had in possession. [20 Stat. L. 343.]

This section is given above as amended by Act of May 28. 1880, ch. 108, sec. 13, 21 Stat. L. 148. The amendment consisted in striking out after the word "sale," the words: "Or shall, for such purpose, manufacture, use, or have in possession any cask or package made in imitation of, or intended to be in the similitude of such imported casks or packages, with any imitation of such marks or brands thereon," and by striking out after the word "sold," the word "manufactured."

See note to sections 11 and 12, supra.

Manufactures from imported goods or from distilled spirits or from articles subject to internal revenue tax in manufacturing warehouses, see infra, p. 789.

Sec. 3331. [Release of distillery before judgment, in what cases.] No distillery nor distilling-apparatus seized for any violation of law shall be released to the claimant or to any intervening party before judgment, except in case of a distillery for which bond has been given and which has a registered producing capacity of one hundred and fifty proof-gallons or more per day, on showing, by sufficient affidavits, that there are hogs or other live stock, not less than fifty head in number, depending for their feed on the products of said distillery, which would suffer injury if the business of such distillery is stopped. Such distillery, in that case, may be released to the claimant, or to any other intervening party, at the discretion of the court, on a bond to be given and approved in open court, with two or more sureties, for the full appraised value of all the property seized, to be ascertained by three competent appraisers designated and appointed by the court. [R. S.]

Act of July 20, 1868, ch. 186, 15 Stat. L. 142.

Not release of lien for unpaid taxes. — The release of the distillery on bond, in a forfeiture proceeding, does not operate as a release of the property from any lien for unpaid taxes, and the government is not estopped to assert such lien. On a discontinuance of the proceedings for forfeiture,

the bond ceases to have any force and effect, but the statutory lien of the United States for the taxes remains unaffected. Alkan v. Bean, (1877) 8 Biss. (U. S.) 83.

The jurisdiction of the court to go on with the condemnation proceedings is not divested by the release of the property on bond. U.S. v. Mackoy, (1872) 2 Dill. (U. S.) 305.

Sec. 3332. [Distillery apparatus to be destroyed in certain cases of seizure and forfeiture - procedure reimbursement liability on official bond.] When a judgment of forfeiture, in any case of seizure, is recovered against any distillery used or fit for use in the production of distilled spirits, because no bond has been given, or against any distillery used or fit for use in the production of spirits, having a registered producing capacity of less than one hundred and fifty gallons a day, for any violation of law, of whatever nature, every still, doubler, worm, worm-tub, mash-tub, and fermenting-tub therein shall be so destroyed as to prevent the use of the same or of any part thereof for the purpose of distilling; and the materials shall be sold as in case of other forfeited property. And in case of seizure of a still, doubler, worm, worm-tub, mash-tub, fermenting-tub, or other distilling apparatus, having a less producing capacity than one hundred and fifty gallons per day, for any offense involving forfeiture of the same, where said apparatus shall be of less than five hundred dollar's [sic] value, and where it shall be impracticable to remove the same to a place of safe storage from the place where seized, the seizing officer is authorized to destroy the same only so far as to prevent the use thereof, or any part thereof, for the purpose of distilling: Provided, That such destruction shall be in the presence of at least one credible witness, and that such witness shall unite with the said officer in a duly sworn report of said seizure and destruction, to be made to the Commissioner of Internal Revenue, in which report they shall set forth the grounds of the claim of forfeiture, the reasons for such seizure and destruction, their estimate of the fair cash value of the apparatus destroyed, and also of the materials remaining after such destruction, and a statement that, from facts within their own knowledge, they have no doubt whatever that said distilling apparatus was set up for use and not registered, or had been used in the unlawful distillation of spirits, and that it was impracticable to remove the same to a place of safe storage. Within one year after such destruction the owner of the apparatus so destroyed may make application to the Secretary of the Treasury, through the Commissioner of Internal Revenue, for reimbursement of the value of the same; and unless it shall be made to appear to the satisfaction of the Secretary and the Commissioner that said apparatus had been used in

the unlawful distillation of spirits, the Secretary shall make an allowance to said owner, not exceeding the value of said apparatus, less the value of said materials as estimated in said report; and if the claimant shall thereupon satisfy said Secretary and Commissioner that said unlawful use of the apparatus had been without his consent or knowledge, he shall still be entitled to such compensation, but not otherwise. And in case of a wrongful seizure and destruction of property under the foregoing provisions, the owner thereof shall have right of action on the official bond of the officer who occasioned the destruction for all damages caused thereby. [R. S.]

Act of July 20, 1868, ch. 186, 15 Stat. L. 142; Act of June 6, 1872, ch. 315, 17 Stat. L. 240.

The provisions beginning "and in case of

seizure of a still," etc., to the end of the section were added by Act of March 1, 1879, ch. 125, 20 Stat. L. 339.

Sec. 3333. [When burden of proof is on claimant of spirits seized.] Whenever seizure is made of any distilled spirits found elsewhere than in a distillery or distillery warehouse, or other warehouse for distilled spirits authorized by law, or than in the store or place of business of a rectifier, or of a wholesale liquor-dealer, or than in transit from any one of said places; or of any distilled spirits found in any one of the places aforesaid, or in transit therefrom, which have not been received into or sent out therefrom in conformity to law, or in regard to which any of the entries required by law to be made in the books of the owner of such spirits, or of the store-keeper, wholesale dealer, or rectifier, have not been made at the time or in the manner required, or in respect to which the owner or person having possession, control, or charge of said spirits, has omitted to do any act required to be done, or has done or committed any act prohibited in regard to said spirits, the burden of proof shall be upon the claimant of said spirits to show that no fraud has been committed, and that all the requirements of the law in relation to the payment of the tax have been complied with. [R. S.]

Act of July 20, 1868, ch. 186, 15 Stat. L. 140.

As to burden of proof under section 45 of the Act of July 13, 1866, see Lilienthal's Tobacco v. U. S., (1877) 97 U. S. 268; 199 Barrels Whiskey v. U. S., (1877) 94 U. S. 91;

U. S. v. 508 Barrels Distilled Spirits, (1867) 5 Blatchf. (U. S.) 407; U. S. v. Six Barrels Distilled Spirits, (1867) 5 Blatchf. (U. S.) 542; U. S. v. Eight Casks Whiskey, (1867) 25 Fed. Cas. No. 15,030.

Sec. 3334. [Spirits sold under judicial process subject to tax - low proof spirits of less value than tax.] All distilled spirits forfeited to the United States, sold by order of court, or under process of distraint, shall be sold subject to tax; and the purchaser shall immediately, and before he takes possession of said spirits, pay the tax thereon. And any distilled spirits heretofore condemned, and now in the possession of the United States, shall be sold as herein provided. If any tax-paid stamps are affixed to any cask or package so condemned, such stamps shall be obliterated and destroyed by the collector or marshal after forfeiture, and before such sale.

Provided: That in all cases wherein it shall appear that any distilled spirits offered for sale on distraint for taxes, where the taxes on such spirits have not been paid, or offered for sale for the benefit of the United States as forfeited spirits under order of court or under proceeding pursuant to section thirty-four hundred and sixty of the Revised Statutes, will not, by reason of such spirits being below proof, being [bring?] a price equal to the tax due and payable thereon, but will bring a price equal to, or greater than, the tax on said spirits, computed only upon the proof-gallons contained in the packages, without regard to the greater number of wine-gallons contained therein, then, and in such case,