dred cigarettes each, and shall securely affix to each of said packages or parcels a suitable stamp denoting the tax thereon, and shall properly cancel the same prior to such sale or removal for consumption or use, under such regulations as the Commissioner of Internal Revenue shall prescribe; and all cigarettes imported from a foreign country shall be packed, stamped, and the stamps canceled in like manner, in addition to the import stamp indicating inspection of the custom-house, before they are withdrawn therefrom."

Restamping tax-paid goods when original stamps are destroyed, and redemption of spoiled or destroyed stamps, see infra, p. 792.

Retailing cigars at place of manufacture. Under this section, and sections 3297 and 3400, R. S., the removal of cigars from the place where they were manufactured, in the rear part of a small room, and selling them at retail in the front part of the room, only divided from the rear part by a wooden bar

about three feet high extending partly across the room, was ground for the forfeiture of the cigars. Ludloff v. U. S., (1883) 108 U. S. 176. See also Crisp v. Proud, (1878) 4 Hughes (U. S.) 57; U. S. v. Neid, (1870) 27 Fed. Cas. No. 15,860.

Definition of cigars includes cigarettes. The amendment of this section does not have the effect to repeal pro tanto the definition of cigars contained in section 3387, supra. That section defines cigars to include cigarettes, and the provisions of this section still apply to cigarettes as well as cigars, only that the further proviso excepts from the purview of the section cigarettes to the extent stated, viz., in regard to the quantities in which they shall be packed; that is, while the purview prescribes that cigars shall be packed in certain quantities, cigarettes are excepted from such provision, and are directed to be packed in certain other quantities. U. S. v. Sapinkow, (1898) 90 Fed. Rep. 654.

Sec. 3393. [Label and notice on boxes of cigars.] Every manufacturer of cigars shall securely affix, by pasting on each box containing cigars manufactured by or for him, a label, on which shall be printed, besides the number of the manufactory and the district and State in which it is situated, these words:

NOTICE. The manufacturer of the cigars herein contained has complied with all the requirements of law. Every person is cautioned not to use either this box for cigars again, or the stamp thereon again, nor to remove the contents of this box without destroying said stamp, under the penalties provided by law in such cases.

Every manufacturer of cigars who neglects to affix such label to any box containing cigars 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 box, shall be fined fifty dollars for each box in respect to which such offense is committed. [R. S.]

The above provisions were substituted by Act of March 1, 1879, ch. 125, sec. 16, 20 Stat. L. 348, for the section as originally enacted, which was as follows:

"SEC. 3393. Every manufacturer of cigars shall securely affix, by pasting on each box containing cigars manufactured by or for him, a label, on which shall be printed, together with the proprietor's or manufacturer's name, the number of the manufactory, and the district and State in which it is situated, these words:

"NOTICE. The manufacturer of the cigars herein contained has complied with all the requirements of law. Every person is cau

tioned under the penalties of law not to use this box for cigars again.

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Every manufacturer of cigars who neglects to affix such label to any box containing cigars 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 box, shall be fined fifty dollars for each box in respect to which such offense is committed." Act of July 20, 1868, ch. 186, 15 Stat. L. 162; Act of April 10, 1869, ch. 18, 16 Stat. L. 43.

Exemption of exported cigars from above provisions, see R. S. sec. 3397, infra, p. 750.

Sec. 3394. [Tax on cigars and cigarettes contents of packages-offers of gifts, prize, etc.] Upon cigars which shall be manufactured and sold, or removed for consumption or sale, there shall be assessed and collected the following taxes, to be paid by the manufacturer thereof: On cigars of all descriptions made of tobacco, or any substitute therefor, and weighing more than three pounds per thousand, three dollars per thousand; on cigars, made of tobacco, or any substitute therefor, and weighing not more than three pounds per thousand, one dollar per thousand; on cigarettes, made of tobacco, or any substitute therefor, and weighing more than three pounds per thousand, three

dollars per thousand; on cigarettes, made of tobacco, or any substitute therefor, and weighing not more than three pounds per thousand, one dollar per thousand: Provided, That all rolls of tobacco, or any substitute therefor, wrapped with tobacco, shall be classed as cigars, and all rolls of tobacco, or any substitute therefor, wrapped in paper or any substance other than tobacco, shall be classed as cigarettes.

And the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall provide dies and adhesive stamps for cigars weighing not more than three pounds per thousand: Provided, That such stamps shall be in denominations of ten, twenty, fifty, and one hundred, and the laws and regulations governing the packing and removal for sale of cigarettes, and the affixing and canceling of the stamps on the packages thereof, shall apply to cigars weighing not more than three pounds per thousand.

None of the packages of smoking tobacco and fine-cut chewing tobacco and cigarettes prescribed by law shall be permitted to have packed in, or attached to, or connected with, them, any article or thing whatsoever, other than the manufacturers' wrappers and labels, the internal revenue stamp and the tobacco or cigarettes, respectively, put up therein, on which tax is required to be paid under the internal revenue laws; nor shall there be affixed to, or branded, stamped, marked, written, or printed upon, said packages, or their contents, any promise or offer of, or any order or certificate for, any gift, prize, premium, payment, or reward. [R. S.]

The above provisions were substituted by Act of July 24, 1897, ch. 11, sec. 10, 30 Stat. L. 206, for the section as originally enacted and as amended by successive revenue acts increasing or reducing the tax as the case may be. See note following R. S. sec. 3368. The original section was as follows:

"SEC. 3394. Upon cigars which shall be manufactured and sold, or removed for consumption or use, there shall be assessed and collected the following taxes, to be paid by the manufacturer thereof:

"On cigars of all descriptions, made of tobacco or any substitute therefor, five dollars per thousand; on cigarettes weighing not more than three pounds per thousand, one dollar and fifty cents per thousand; on cigarettes weighing more than three pounds per thousand, five dollars per thousand." Act of July 20, 1868, ch. 186, 15 Stat. L. 160.

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By Act of March 3, 1875, ch. 127, 18 Stat. L. 339, 'six dollars " was substituted for "five dollars," and " seventy-five cents" for 'fifty cents," in the above paragraph.

See further amendments and provisions in the following sections, superseding those in the text above given.

Congress has the right to prescribe that every package of tobacco and cigarettes should contain nothing but the article which is taxed. Felsenheld v. U. S., (1902) 186 U. S. 126; U. S. v. 288 Packages of Merry World Tobacco, (1900) 103 Fed. Rep. 453. See (1898) 22 Op. Atty. Gen. 181.

A Merry World tobacco coupon" cannot be placed within a package of tobacco without violating this section. U. S. v. 288 Packages of Merry World Tobacco, (1900) 103 Fed. Rep. 453.

A coupon printed on thin paper of inappreciable weight, which is without intrinsic upon the package, nor interfere in any way the ascertaining of the proper tax payable upon the package, nor interfere in any way with the collection of the tax, is within the prohibition of the statute. Felsenheld v. U. S., (1902) 186 U. S. 126.

The statutory definition of cigars to include cigarettes, in section 3387, supra, does not apply in such a section as this wherein special provision is made for cigarettes, as the tax on cigars and cigarettes is stated at different amounts. U. S. v. Sapinkow, (1898) 90 Fed. Rep. 654.

SEC. 2. [R. S. 3394 amended as to prints, etc., with packages.] That the last paragraph of section thirty-three hundred and ninety-four of the Revised Statutes, as amended by the tenth section of the Act of July twenty-fourth, eighteen hundred and ninety-seven, is hereby further amended so as to read as follows:

"No packages of manufactured tobacco, snuff, cigars, or cigarettes, prescribed by law, shall be permitted to have packed in, or attached to, or connected with, them, nor affixed to, branded, stamped, marked, written, or printed upon them, any paper, certificate, or instrument purporting to be or represent a ticket, chance, share or interest in, or

dependent upon, the event of a lottery, nor any indecent or immoral picture, representation, print, or words; and any violation of the provisions of this paragraph shall subject the offender to the penalties and punishments provided by section thirty-four hundred and fifty-six of the Revised Statutes." [32 Stat. L. 715.]

This is from the Act of July 1, 1902, ch. 1371.

[SEC. 3.] [Taxes on cigars and cigarettes.] That the internalrevenue 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. [32 Stat. L. 96.]

This is from the Act of April 12, 1902, ch. 500, sec. 3, 32 Stat. L. 96, 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 in part as above given. The whole section is given, supra, p. 730.

The provisions here given would appear to supersede the provisions in the preceding text as to amount of taxes on cigars and cigarettes, and also the provisions of the Act of March 2, 1901, ch. 806, sec. 3, 31 Stat. L. 939, entitled An act to amend an act entitled 'An act to provide ways and means to meet war expenditures, and for other purposes,' approved June thirteenth, eighteen hundred and ninety-eight, and to reduce taxation thereunder," which were as follows:

"SEC. 3. That the internal-revenue tax on cigars 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."

Sec. 3395. [Stamps, how prepared, furnished, and accounted for.] The Commissioner of Internal Revenue shall cause to be prepared, for payment of the tax upon cigars, suitable stamps denoting the tax thereon. Such stamps shall be furnished to collectors requiring them, and collectors shall, if there be any cigar-manufacturers within their respective districts, keep on hand at all times a supply equal in amount to two months' sales thereof, and shall sell the same only to the cigar-manufacturers who have given bonds and paid the special tax, as required by law, in their districts, respectively, and to importers of cigars, who are required to affix the same to imported cigars in the custody of customs officers, and to persons required by law to affix the same to cigars on hand after the first day of April, eighteen hundred and sixty-nine. Every collector shall keep an account of the number, amount, and denominate values of the stamps sold by him to each cigar-manufacturer, and to other persons above described. [R. S.]

Act of July 20, 1868, ch. 186, 15 Stat. L. 162.

Sec. 3396. [Inspection of cigars, cheroots, and cigarettes, etc.] The Commissioner of Internal Revenue may prescribe such regulations for the inspection of cigars, cheroots, and cigarettes, and the collection of the tax thereon, as he

may deem most effective for the prevention of frauds in the payment of such tax. [R. S.]

Act of July 20, 1868, ch. 186, 15 Stat. L. 160.

Presumption from amount of material used. Under this section and section 3371, R. S., the commissioner claimed the authority to hold: (1) That prima facie evidence of sale or removal of cigars without the payment of the tax is furnished from the abstract reports of cigar manufacturers' accounts, made up by collectors from the manufacturers' yearly inventories and monthly reports of, material on hand and purchased, and of cigars made and sold, together with the collector's own account of stamps sold, and which abstracts are rendered to him; and from the abstracts of sales made to cigar manufacturers of leaf tobacco, taken from the books required to be kept of all such transactions by leaf dealers. (2) That the failure of cigar manufacturers to make return of products corresponding to the amount of material had and used and corresponding to what is well known to be the average production of cigars from a given quantity of material, is made prima facie evidence of sale and removal of cigars without the payment of the tax, the presumption being that the cigars were actually made, but the tax not paid. (3) That upon such evidence and presumption the commissioner may proceed, upon receiving from collectors such abstract reports, to estimate the amount of tax apparently omitted to be paid and to assess the same, subject, however, to such explanations and re

butting evidence as the manufacturer may be able to offer before collection of such assessment is made. The court charged, on the question as to the use of more than the usual quantity of tobacco for a given number of cigars, that it was the duty of the jury to find whether or not the presumption raised against the manufacturer by the returns had been rebutted by evidence tending to show that most of the cigars were of a large size, and that the general average of his manufacture was larger in size than ordinarily made. U. S. v. Appel, (1876) 24 Fed. Cas. No. 14,462.

A circular issued by the commissioner of internal revenue, holding that a cigar factory, or the place where cigars can be made for sale, must be at least an entire room, separate by walls and partitions from all other parts of the building, and that the factory and place of manufacture cannot be used, nor any portion thereof, even though marked off or separated from the remainder by a railing, counter, bench, screen, or curtain, as a store where the manufacturer can sell his cigars otherwise than in legal boxes, properly branded, labeled, and stamped, was authorized by this section as being within his authority to prescribe such regulations for the inspection of cigars and the collection of the tax thereon as he may deem most effective for the prevention of frauds in the payment of such tax. Ludloff v. U. S. (1883) 108 U. S. 176.

Sec. 3397. [Removal without properly boxing, stamping, or branding using false stamps, etc. -- exported cigars exempt.] Whenever any cigars are removed from any manufactory, or place where cigars are made, without being packed in boxes as required by the provisions of this chapter, or without the proper stamp thereon denoting the tax, or without stamping, indenting, burning, or impressing into each box, in a legible and durable manner, the number of the cigars contained therein, the number of the manufactory, and the number of the district and the State, or without properly affixing thereon and canceling the stamp denoting the tax on the same, or are sold, or offered for sale, not properly boxed and stamped, they shall be forfeited to the United States. And every person who commits any of the above-described offenses shall be fined for each such offense not less than one hundred dollars nor more than one thousand dollars, and imprisoned not less than six months nor more than two years. And every person who packs cigars in any box bearing a false or fraudulent or counterfeit stamp, or who affixes to any box containing cigars a stamp in the similitude or likeness of any stamp required to be used by the laws of the United States, whether the same be a customs or internal-revenue stamp, or who buys, receives, or has in his possession any cigars on which the tax to which they are liable has not been paid, or who removes, or causes to be removed, from any box any stamp denoting the tax on cigars, with intent to use the same, or who uses, or permits any other person to use, any stamp so removed, or who receives, buys, sells, gives away, or has in his possession any stamp so removed, or who makes any other fraudulent use of any stamp intended for cigars, or who removes from the place of manufacture any cigars not properly boxed and stamped as required by law, shall be deemed guilty of a felony, and shall be fined not less than one

hundred dollars nor more than one thousand dollars, and imprisoned not less than six months nor more than three years: Provided, That cigars packed expressly for export, and which shall be exported to a foreign country under the restrictions and regulations prescribed by the Commissioner of Internal Revenue, and approved by the Secretary of the Treasury, shall be exempt from the provisions of this section, and also from the provisions of section thirty-three hundred and ninety-three of the Revised Statutes, requiring a label to be affixed to each box. [R. S.]