snuff, and cigars under such regulations as the Commissioner of Internal Revenue may establish. [R. S.] The above provisions were substituted for and added to the section as originally enacted by Act of March 1, 1879, ch. 125, 20 Stat. L. 345; Act of Jan. 9, 1883, ch. 16, 22 Stat. L. 401; and Act of July 1, 1902, ch. 1371, 32 Stat. L. 714. The section was originally as follows: "SEC. 3362. All manufactured tobacco shall be put up and prepared by the manufacturer for sale, or removal for sale or consumption, in packages of the following description, and in no other manner: "All snuff in packages containing one, two, four, six, eight, and sixteen ounces, or in bladders and in jars containing not exceeding twenty pounds. "All fine-cut chewing-tobacco, and all other kinds of tobacco not otherwise provided for, in packages containing one, two, four, eight, and sixteen ounces, except that fine-cut chewing-tobacco may, at the option of the manufacturer, be put up in wooden packages containing ten, twenty, forty, and sixty pounds each. 66 All smoking-tobacco, and all cut and granulated tobacco other than fine-cut chewing, all shorts, the refuse of fine-cut chewing, which has passed through a riddle of thirty-six meshes to the square inch, and all refuse scraps, clippings, cuttings, and sweepings of tobacco, in packages containing two, four, eight, and sixteen ounces each. "All cavendish, plug, and twist tobacco in wooden packages not exceeding two hundred pounds net weight. "And every such wooden package shall have printed or marked thereon the manufacturer's name and place of manufacture, the registered number of the manufactory, and the gross weight, the tare, and the net weight of the tobacco in each package: Provided, That these limitations and descriptions of packages shall not apply to tob[a]cco and snuff transported in bond for exportation and actually exported: And provided further, That finecut shorts, the refuse of fine-cut chewingtobacco, refuse scraps, clippings, cuttings, and sweepings of tobacco, may be sold in bulk as material, and without the payment of tax, by one manufacturer directly to another manufacturer, or for export, under such restrictions, rules, and regulations as the Commissioner of Internal Revenue may prescribe: And provided further, That wood, metal, paper, or other materials may be used separately or in combination for packing tobacco, snuff, and cigars, under such regulations as the Commissioner of Internal Revenue may establish." Act of July 20, 1868, ch. 186, 15 Stat. L. 153; Act of June 6, 1872, ch. 315, 17 Stat. L. 252. In the fourth paragraph of the original section, the word " 'sweepings' was substituted for "sweeping" by Act of Feb. 27, 1877, ch. 69, 19 Stat. L. 248. The amendment of 1879 changed merely the size of the packages as shown in the text. The amendment of 1883, entitled "An act to amend section thirty-three hundred and that sixty-two of the Revised Statutes relating to the tax on perique tobacco," provided section thirty-three hundred and sixty-two, as amended by the Act of March first, eighteen hundred and seventy-nine, be, and the same is hereby, amended by inserting after the words or for export,' and before the words 'under such restrictions' in the second provision of said section, the following words: 'And perique tobacco may be sold by the manufacturer or producer thereof, in the form of carrottes, directly to a legallyqualified manufacturer, to be cut or granulated and used as material in the manufacture of cigarettes or smoking tobacco, without the payment of tax'." The amendment of 1902, entitled "An act to amend sections thirty-three hundred and sixty-two and thirty-three hundred and ninety-four of the Revised Statutes of the United States, relating to tobacco," struck out all after the fifth paragraph of the section as originally enacted and inserted in lieu thereof the provisions given in the text. Later provisions for the size of packages of tobacco and snuff are given, infra, p. 730. This section and sections 3244 (9) and 3368, R. S., "sought to accomplish two objects: first, the taxation of all forms of manufactured tobacco, including also the waste or scrap arising therefrom; and, second, the complete accounting by the manufacturer for all the product of his factory, including the waste." Seeberger v. Castro, (1893) 153 U. S. 36. The requirement of section 3397, R. S., that certain numbers and names be burned into cigar-boxes with a branding iron before removing them from the manufactory, does not affect the provision of this section as to the use of wood, metal, paper, etc., separately or in combination, for packing tobacco, snuff, and cigars. (1875) 15 Op. Atty. Gen. 516. An article known as a "Jumbo " cigar, which is bought, sold, and used in trade under that name, could be smoked as other cigars of smaller size, as the tobacco is laid without twist, but the grade is inferior to that known as manufactured, and they are not sold as such, but generally for the purpose of ornament or as a novelty. Upon the question whether they were to be classified as cigars or as manufactured tobacco, the court charged the jury that the fact that they could be smoked did not altogether determine their character, and that if that was not their principal use, but if they were used for some other purpose, they were not to be taken as the cigars meant by the Act of Congress, as the act applies only to such articles as are commonly known as cigars." D'Estrinoz v. Gerker, (1890) 43 Fed. Rep. 285. The manufacture and sale at retail of cigars and manufactured tobacco cannot be lawfully carried on at the same time and in the same place. (1878) 16 Op. Atty.-Gen. 89. See U. S. v. Neid, (1870) 27 Fed. Rep. Cas. 15,860. Sec. 3363. [Tobacco and snuff to be sold only in prescribed packages penalty.] No manufactured tobacco shall be sold or offered for sale unless put up in packages and stamped as prescribed in this chapter, except at retail by retail dealers from packages authorized by section thirty-three hundred and sixty-two of the Revised Statutes; and every person who sells or offers for sale any snuff or any kind of manufactured tobacco not so put up in packages and stamped shall be fined not less than five hundred dollars nor more than five thousand dollars, and imprisoned not less than six months nor more than two years. [R. S.] The provisions above given were substituted by Act of Oct. 1, 1890, ch. 1244, sec. 31, 26 Stat. L. 619, for the section as originally enacted, which was as follows: "SEC. 3363. No manufactured tobacco shall be sold or offered for sale unless put up in packages and stamped as prescribed in this chapter, except at retail by retail dealers from wooden packages stamped as provided in this chapter; and every person who sells or offers for sale any snuff, or any kind of manufactured tobacco, not so put up in packages and stamped, shall be fined not less than five hundred dollars nor more than five thousand dollars, and imprisoned not less than six months nor more than two years." Act of July 20, 1868, ch. 186, 15 Stat. L. 159. Section 3363 above given is a part of chanter 5 of title XXXV. which included sections 3355-3386. Payment of tax any time before sale or removal. From the provisions of this section and sections 3355 and 3372, R. S., it is very plain that, though no sale or removal of manufactured tobacco can be lawfully made without the prepayment of the tax thereon, it is entirely lawful for the manufacturer to pay such taxes at any time before a sale or removal, and entirely lawful for the collector to receive the tax by the sale of the stamps when applied for. Franks v. Robards Tobacco Co., (C. C. A. 1901) 112 Fed. Rep. 784. The manufacture and sale at retail of cigars and manufactured tobacco cannot be lawfully carried on at the same time and in the same place. (1878) 16 Op. Atty.-Gen. 89. See U. S. v. Neid, (1870) 27 Fed. Cas. No. 15.860. A sale of manufactured tobacco by one retail dealer to another to sell again is a retailing within the excepting clause of this section, and does not subject the vendor to the penalties of the statute. Whatever penalties the vendee might incur if he should sell or offer to sell the tobacco, he must answer for his own acts, but the vendor has committed no wrong. U. S. v. Jenkinson, (1883) 15 Fed. Rep. 903. A sale at retail need not be made directly and literally from the package, and a retail dealer brings himself within the excepting clause of this section when he follows the practice of storing the original packages of plug tobacco in a room in the rear of his drug store, and from time to time, as his business requires, cutting plugs from the packages and exposing them for sale in a show-case in the front store, the package itself remaining in the back room. U. S. v. Veazie, (1881) 6 Fed. Rep. 867. It was held, under the Act of July 20, 1868, that the last clause of section 78 contained no exception incorporated with it to be negatived in an indictment founded upon it. U. S. v. Imsand, (1869) 1 Woods (U. S.) 581. Sec. 3364. [Label and notice on packages of tobacco and snuff.] Every manufacturer of tobacco or snuff shall, in addition to all other requirements of this Title relating to tobacco, print on each package, or securely affix, by pasting, on each package containing tobacco or snuff manufactured by or for him, a label, on which shall be printed the proprietor's or manufacturer's name, the number of the manufactory, the district and State in which it is situated, and these words: "NOTICE. The manufacturer of this tobacco has complied with all requirements of law. Every person is cautioned, under the penalties of law, not to use this package for tobacco again.' Every manufacturer of tobacco who neglects to print on or affix such label to any package containing tobacco made by or for him, or sold or offered for sale by or for him, and every person who removes any such label so affixed from any such package, shall be fined fifty dollars for each package in respect to which such offense shall be committed. [R. S.] Act of July 20. 1868, ch. 186, 15 Stat. L. "Internal Revenue," which comprises sections 3140-3465. See provisions in following text: SEC. 5. [Label and notice.] That from and after the passage of this act every manufacturer of tobacco or snuff shall, in addition to all other requirements of law, print on each package, or securely affix by pasting on each package containing tobacco or snuff manufactured by or for him, a label on which shall be printed the number of the manufactory, the district and State in which it is situated, and these words: NOTICE. The manufacturer of this tobacco has complied with all requirements of law. Every person is cautioned, under penalties of law, not to use this package for tobacco again. [22 Stat. L. 489.] This is from the Act of March 3, 1883, ch. 121, entitled "An act to reduce internal revenue taxation, and for other purposes," and would appear to be intended as a substitute for a portion of R. S. sec. 3364, set out above. Sec. 3365. [Snuff and smoking-tobacco manufactured before July 20, 1868, may be sold in original packages.] The Commissioner of Internal Revenue may, in any case, allow snuff and smoking-tobacco manufactured before July twenty, eighteen hundred and sixty-eight, not in wooden packages, to be stamped and sold in the original packages. [R. S.] Act of April 10, 1869, ch. 18, 16 Stat. L. 44. Sec. 3366. [Purchasing tobacco and snuff not branded or marked - penalty.] Every person who purchases, or receives for sale, any manufactured tobacco or snuff which has not been branded or stamped according to law, shall be liable to a penalty of fifty dollars for each offense. [R. S.] Act of June 30, 1864, ch. 173, 13 Stat. L. 263; Act of July 13, 1866, ch. 184, 14 Stat. L. 126; Act of July 20, 1868, ch. 186, 15 Stat. L. 156. Sec. 3367. [Buying tobacco or snuff from manufacturer who has not paid special tax.] Every person who purchases, or receives for sale, any manufactured tobacco or snuff from any manufacturer who has not paid the special tax, shall be liable for each offense to a penalty of one hundred dollars, and to a forfeiture of all the articles aforesaid so purchased or received, or of the full value thereof. [R. S.] Act of June 30, 1864, ch. 173, 13 Stat. L. 263; Act of July 13, 1866, ch. 184, 14 Stat. L. 126. Sec. 3368. [Tax on tobacco and snuff.] This section was as follows: "SEC. 3368. Upon tobacco and snuff manufactured and sold, or removed for consumption or use, there shall be levied and collected the following taxes: "On snuff, manufactured of tobacco or any substitute for tobacco, ground, dry, damp, pickled, scented, or otherwise, of all descriptions, when prepared for use, a tax of thirtytwo cents per pound. And snuff-flour, when sold, or removed for use or consumption, shall be taxed as snuff, and shall be put up in packages and stamped in the same manner as snuff. "On all chewing and smoking tobacco, finecut, cavendish, plug, or twist, cut or granulated, of every description; on tobacco twisted by hand or reduced into a condition to be consumed, or in any manner other than the ordinary mode of drying and curing, prepared for sale or consumption, even if prepared with [Superseded.] out the use of any machine or instrument, and without being pressed or sweetened; and on all fine-cut shorts and refuse scraps, clippings, cuttings, and sweepings of tobacco, a tax of twenty cents a pound." Act of July 20, 1868, ch. 186, 15 Stat. L. 152; Act of June 6, 1872, ch. 315, 17 Stat. L. 250. as This section has been directly amended from time to time or superseded by provisions of the successive tariff and revenue acts, increasing or reducing as the case may be the tax on tobacco and snuff. These acts were follows: Act of March 3, 1875, ch. 127, sec. 2, 18 Stat. L. 339; Act of March 1, 1879, ch. 125, sec. 14, 20 Stat. L. 345; Act of March 3. 1883, ch. 121, sec. 4, 22 Stat. L. 489; Act of Oct. 1, 1890, ch. 1244, sec. 30, 26 Stat. L. 619; Act of June 13, 1898, ch. 448, sec. 3, 30 Stat. L. 449. The provisions in force at the present time are given in the following text: SEC. 3. [Taxes on tobacco and snuff- cigars and cigarettes-size of packages.] That upon tobacco and snuff manufactured and sold, or removed for consumption or use, there shall be levied and collected, in lieu of the tax now imposed by law, the following taxes: On snuff, manufactured of tobacco or any substitute for tobacco, ground, dry, damp, pickled, scented, or otherwise, of all descriptions, when prepared for use, a tax of six cents per pound. And snuff-flour, when sold, or removed for use or consumption, shall be taxed as snuff, and shall be put up in packages and stamped in the same manner as snuff. On all chewing and smoking tobacco, fine cut, cavendish, plug, or twist, cut or granulated, of every description; on tobacco twisted by hand or reduced into a condition to be consumed, or in any manner other than the ordinary mode of drying and curing, prepared for sale or consumption, even if prepared without the use of any machine or instrument, and without being pressed or sweetened; and on all fine-cut shorts and refuse scraps, clippings, cuttings, and sweepings of tobacco, a tax of six cents per pound. That the internal-revenue tax on cigars or cigarettes weighing more than three pounds per thousand shall be three dollars per thousand; and the tax on cigars weighing not more than three pounds per thousand shall be eighteen cents per pound, and on cigarettes weighing not more than three pounds per thousand and of a wholesale value or price of not more than two dollars per thousand shall be eighteen cents per pound; and the tax on cigarettes weighing not more than three pounds per thousand and of a wholesale value or price of more than two dollars per thousand shall be thirty-six cents per pound; and all such cigars and cigarettes weighing not more than three pounds per thousand shall, for purposes of taxation, be held and considered as weighing three pounds. That in addition to the packages of smoking tobacco and snuff now authorized by law there shall be packages of one and two-thirds ounces, two ounces, two and one-half ounces, three ounces, three and one-third ounces, and four ounces; and there may be a package containing one ounce of smoking tobacco. [32 Stat. L. 96.] This is from the Act of April 12, 1902, ch. 500, entitled "An act to repeal war revenue taxation, and for other purposes," amending section 3 of the Act of June 13, 1898, ch. 448, 30 Stat. L. 449, so as to read as above given. SEC. 4. [Drawback on stock held July 1, 1902.] That on all original and unbroken factory packages of smoking and manufactured tobacco and snuff held by manufacturers or dealers on July first, nineteen hundred and two, upon which there has been paid a higher tax than that provided for in the preceding section of this Act, there shall be allowed a drawback or rebate equal to the full amount of the difference between such higher tax and the tax imposed by this Act, after making the proper allowance for discounts and rebates heretofore authorized, but the same shall not apply in any case where the claim has not been presented within sixty days after July first, nineteen hundred and two; and no claim shall be allowed or drawback paid for a less amount than ten dollars. It shall be the duty of the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, to adopt such rules and regulations and to prescribe and furnish such blanks and forms as may be necessary to carry this section into effect. [32 Stat. L. 97.] This is from the Act of April 12, 1902, ch. 500, above noted. Provisions for allowance of drawback in prior acts reducing taxes on tobacco, snuff, cigars, etc., are found in Act of March 3, 1883, ch. 121, sec. 4, 22 Stat. L, 489, and Act of Dec. 15, 1890, ch. 6, 26 Stat. L. 689. This section and sections 3244 (9) and 3262, R. S., "sought to accomplish two objects: First, the taxation of all forms of manufactured tobacco, including also the waste or scrap arising therefrom; and, second, the complete accounting by the manufacturer for all the product of his factory, including the waste." Seeberger v. Castro, (1893) 153 U. S. 36. A completed sale or a completed removal, of the manufactured article, is a necessary preliminary to the accruing, assessment and payment of the tax. U. S. v. Quantity of Tobacco, etc., (1872) 6 Ben. (U. S.) 68. Excise tax-power to retax. The tax on manufactured tobacco is a tax on an article manufactured for consumption, and imposed at a period intermediate the com mencement of manufacture and the final con- 105 U. S. 639. As to "scrap" tobacco, see (1884) 17 Op. Atty. Gen. 646. As to when an act increasing the tax goes into effect, see Burgess v. Salmon, (1878) 97 U. S. 381. Sec. 3369. [Stamps, how prepared, furnished, and sold.] The Commissioner of Internal Revenue shall cause to be prepared suitable and special stamps for the payment of the tax on tobacco and snuff, which shall indicate the weight and class of the article on which payment is to be made, and shall be affixed and canceled in the mode prescribed by the Commissioner of Internal Revenue, and stamps when used on any wooden package shall be canceled by sinking a portion of the same into the wood with a steel die, and also such export-stamps as are required by law. Such stamps shall be furnished to the collectors requiring them, and each collector shall keep at all times a supply equal in amount to three months' sale thereof, and shall sell the same only to the manufacturers of tobacco and snuff in their respective districts who have given bonds as required by law, and to owners or consignees of tobacco or snuff, upon the requisition of the proper custom-house officer having the custody of such tobacco or snuff; and to persons required by law to affix the same to tobacco or snuff on hand on the first day of January, eighteen hundred and sixty-nine. And every collector shall keep an account of the number, amount, and denominate values of stamps sold by him to each manufacturer or other person aforesaid: Provided, That such stamps as may be required to stamp tobacco, snuff, or cigars, sold under distraint by any collector of internal revenue, or for stamping any tobacco, snuff, or cigars which may have been abandoned, condemned, or forfeited, and sold by order of court or of any Government officer for the benefit of the United States, may, under such rules and regulations as the Commissioner of Internal Revenue shall prescribe, be used by the collector making such sale, or furnished by a collector to a United States marshal, or to any other Government officer making such sale for the benefit of the United States, without making payment for said stamps so used or delivered; and any revenue-collector using or furnishing stamps in manner as aforesaid, on presenting vouchers satisfactory to the Commissioner of Internal Revenue, shall be allowed credit for the same in settling his stamp-account with the Department: And provided further, That in case it shall appear that any abandoned, condemned, or forfeited tobacco, snuff, or cigars, when offered for sale, will not bring a price equal to the tax due and payable thereon, such goods shall not be sold for consumption in the United States; and upon application made to the Commissioner of Internal Revenue, he is authorized and directed to order the destruction of such tobacco, snuff, or cigars by the officer in whose custody and control the same may be at the time, and in such manner and under such regulations as the Commissioner of Internal Revenue may prescribe. [R. S.] |