Sec. 3416. [State banks converted into national banks-returns, how made.] Whenever any State bank or banking association has been converted into a national banking association, and such national banking association has assumed the liabilities of such State bank or banking association, including the redemption of its bills, by any agreement or understanding whatever with the representatives of such State bank or banking association, such national banking association shall be held to make the required return and payment on the circulation outstanding, so long as such circulation shall exceed five per centum of the capital before such conversion of such State bank or banking association. [R. S.] Act of March 3, 1865, ch. 78, 13 Stat. L. 486; Act of July 13, 1866, ch. 184, 14 Stat. L. 146. See note under R. S. sec. 3414. Sec. 3417. [Provisions for bank tax and returns not to apply to national banks.] The provisions of this chapter, relating to the tax on the deposits, capital, and circulation of banks, and to their returns, except as contained in sections thirty-four hundred and ten, thirty-four hundred and eleven, thirtyfour hundred and twelve, thirty-four hundred and thirteen, and thirty-four hundred and sixteen, and such parts of sections thirty-four hundred and fourteen, and thirty-four hundred and fifteen as relate to the tax of ten per centum on certain notes, shall not apply to associations which are taxed under and by virtue of Title "NATIONAL BANKS." [R. S.] Act of June 30, 1864, ch. 173, 13 Stat. L. 278; Act of July 13, 1866, ch. 184, 14 Stat. L. 146. The words "thirty-four hundred and thir teen" were added by Act of Feb. 18, 1875, ch. 80, 18 Stat. L. 319. For tax on circulation of national banks, see NATIONAL BANKS. [IX. STAMP TAXES ON SPECIFIC OBJECTS.] Secs. 3418-3432, 3435-3437. Schedule A. [Repealed or superseded with the possible exception of section 3426.] Sections 3418-3437 and schedule A constitute chapter 9 of title XXXV of the Revised Statutes, entitled, "Stamp Taxes on Specific Objects." Sections 3418, 3419, and shedule A were repealed by Act of March 3, 1883, ch. 121, sec. 1, 22 Stat. L. 488, which repealed the taxes which were the subject thereof. This act is given, supra, p. 757. Sections 3420-3432, 3435-3437, being based upon the repealed sections, became inoperative by the repeal of the taxes, with the possible exception of sec. 3426. The subjects of the sections and amendments thereto follow. Section 3418 imposed a tax on bank checks, drafts, and orders. The Act of June 30, 1864, ch. 173, sec. 151, 13 Stat. L. 298, from which the section was derived, was specifically amended by Act of Feb. 8, 1875, ch. 36, sec. 15, 18 Stat. L. 310, and an additional amendment was made by the Act of March 3, 1875, ch. 127, sec. 6, 18 Stat. L. 340. See Fairbank v. U. S., (1901) 181 U. S. 307; U. S. v. Mann, (1877) 95 U. S. 582; Pugh v. McCormick, (1871) 14 Wall. (U. S.) 369; (1899) 22 Op. Atty.-Gen. 568; (1874) 14 Op. Atty.-Gen. 635. Section 3419 imposed a tax on medicines, etc., mentioned in schedule A. See Ferguson v. Arthur, (1886) 117 U. S. 488; Diamond Match Co. v. U. S., (1887) 31 Fed. Rep. 273; U. S. v. Diamond Match Co., (1886) 30 Fed. Rep. 108. Section 3420 exempted from taxation checks drawn by United States, state, or municipal officers. See Ralls County v. Douglass, (1881) 105 U. S. 752; U. S. v. Mann. (1877) 95 U. S. 582; Kaufman v. U. S. (1875) 11 Ct. Cl. 668. Section 3421 provided that unstamped checks, etc., should not be admitted in evidence. See U. S. v. Mann. (1877) 95 U. S. 584; Patterson v. Gile, (1870) 1 Colo. 200; Griffin v. Ranney, (1868) 35 Conn. 239; Latham r. Smith, (1867) 45 Ill. 29; Holt v. Board of Liquidators, (1881) 33 La. Ann. 673; Succession of Bernard, (1872) 24 La. Ann. 402; Green v. Holway, (1869) 101 Mass. 243; Carpenter v. Snelling, (1867) 97 Mass. 452. Section 3422 provided penalties and remedies in case of omission to stamp checks, etc. It was amended by Act of Feb. 18, 1875, ch. 80, 18 Stat. L. 319, and by Act of Feb. 27, 1877, ch. 69, 19 Stat. L. 248. See Dowell v. Applegate, (1894) 152 U. S. 331; U. S. v. Mann, (1877) 95 U. S. 582; U. S. v. Isham, (1873) 17 Wall. (U. S.) 507; Pugh v. McCormick, (1871) 14 Wall. (U. S.) 371; Campbell v. Wilcox, (1870) 10 Wall. (U. S.) 421; Dowell v. Applegate, (1881) 8 Fed. Rep. 699; U. S. v. Griswold, (1881) 8 Fed. Rep. 571; Dowell v. Applegate, (1881) 7 Fed. Rep. 881; Hallock υ. Jaudin, (1867) 3 Cal. 167; Lambert v. Whitelock, (1867) 29 Ind. 26; Hugus v. Strickler, (1865) 19 Iowa 413; Latham v. Smith, (1867) 45 Ill. 29; Dudley v. Wells, ( 67) 55 Me. 145; Moore v. Quirk, (1870) 105 Mass. 49; Green . Holway, (1869) 101 Mass. 243; Tobey v. Chipman, (1866) 95 Mass. 123; Whitehill v. Shickle, (1869) 43 Mo. 537; Wayman v. Torreyson, (1868) 4 Nev. 124; Maynard v. Johnson, (1866) 2 Nev. 16; Harper v. Clark, (1867) 17 Ohio St. 190; McGovern v. Hoesback, (1866) 53 Pa. St. 176; Miller v. Morrow (1867) 3 Coldw. (Tenn.) 587; Hitchcock v. Sawyer, (1867) 39 Vt. 412. Section 3423 provided for the cancellation of stamps, and for proprietary stamps and penalties for their fraudulent use. See Swift, etc., Co. v. U. S., (1881) 105 U. S. 693; Diamond Match Co. v. U. S., (1887) 31 Fed. Rep. 271; U. S. v. Diamond Match Co., (1886) 30 Fed. Rep. 108; Swift, etc.. Co. v. U. S., (1883) 18 Ct. Cl. 42. Section 3424 provided for regulations for method of cancellation of stamps. See (1881) 17 Op. Atty.-Gen. 111. Section 3425 provided for the supplying of stamps. See Swift, etc., Co. v. U. S., (1884) 111 U. S. 24; Jessup v. U. S., (1882) 106 U. S. 147; Folger v. U. S., (1880) 103 U. S. 33; U. S. v. Goldback, (1880) 102 U. S. 623; Bechtel v. U. S., (1879) 101 U. S. 598; Diamond Match Co. v. U. S., (1887) 31 Fed. Rep. 274; U., S. v. Fielding, (1882) 17 Fed. Rep. 573; U. S. v. Weedon, (1880) 3 Fed. Rep. 623; Swift, etc., Co. v. U. S., (1883) 18 Ct. Cl. 42; Swift, etc., Co. v. U. S., (1878) 14 Ct. Cl. 482; Daily's Case, (1871) 7 Ct. Cl. 383. Is a portion of R. S. sec. 3426 still in force. "There is another view which I think can be safely taken, which is founded on a portion of section 3426, Revised Statutes, which does not seem to be affected by the repeal of the laws relating to documentary stamps issued under Title XXXV. of the Revised Statutes, and that is the provision in said section extending the authority of the commissioner of internal revenue to make allowance for the redemption of stamps issued under any internal-revenue act. If that portion of section 3426 which is rendered inoperative by reason of the acts repealing the laws authorizing the issue of documentary stamps under the * * * provisions of said title is eliminated, there still remains enough of said section to read as follows: 'The commissioner of internal revenue may, upon receipt of satisfactory evidence of the facts, make allowance for or redeem such of the stamps issued under the provisions of any internal-revenue act as may have been spoiled, destroyed, or rendered useless or unfit for the purpose intended, or for which the owner may have no use, or which, through mistake, may have been improperly or unnecessarily used, or where the rates or duties represented thereby have been excessive in amount, paid in error, or in any manner wrongfully collected; and such allowance or redemption shall be made either by giving other stamps in lieu of the stamps so allowed for or redeemed, or by refunding the amount or value to the owner thereof, deducting therefrom, in case of repayment, the percentage, if any, allowed to the purchaser thereof; but no allowance or redemption shall be made in any case until the stamps so spoiled or rendered useless shall have been returned to the commissioner of internal revenue, or until satisfactory proof has been made showing the reason why the same cannot be so returned. Consequently, although all laws for the redemption of documentary stamps issued under the provisions of Title XXXV. are obsolete, because the authority to issue such stamps is repealed, the power yet remains to redeem documentary stamps issued under another, though a subsequent, internal-revenue act. The Act of June 13, 1898, is an internalrevenue act, and among the methods of raising revenue thereby is that providing for the use of documentary stamps. If, therefore, so much of section 3426 as I quote above is still the law, it becomes a part of the said act by virtue of section 31 of the same." (1899) 22 Op. Atty.-Gen. 568. * * Section 3426 provided for the replacement of spoiled stamps, etc. It was amended by Act of March 1, 1879, ch. 125, sec. 17, 20 Stat. L. 349. It originally read as follows: "SEC. 3462. The Commissioner of Internal Revenue may, from time to time, make regulations, upon proper evidence of the facts, for the allowance of such of the stamps issued under the provisions of this chapter, or any internal revenue act, as may have been spoiled, destroyed, or rendered useless or unfit for the purpose intended, or for which the owner may have no use, or which through mistake, may have been improperly or unnecessarily used, or where the rates or duties represented thereby have been paid in error, or remitted; and such allowance shall be made either by giving other stamps in lieu of the stamps so allowed for, or by repaying the amount or value, after deducting therefrom, in case of repayment, the sum of five per centum to the owner thereof; but no allowance shall be made in any case until the stamps so spoiled or rendered useless shall have been returned to the Commissioner of Internal Revenue, or until satisfactory proof has been made showing the reason why said stamps cannot be so returned." By the Act of March 1, 1879, ch. 125, above mentioned, it was amended so as to read as follows: 66 SEC. 3426. The Commissioner of Internal Revenue may, upon receipt of satisfactory evidence of the facts, make allowance for or redeem such of the stamps issued under the provisions of this title, or of any internal, revenue act, as may have been spoiled, destroyed, or rendered useless or unfit for the purpose intended, or for which the owner may have no use, or which, through mistake, may have been improperly or unnecessarily used, or where the rates or duties represented thereby have been excessive in amount, paid in error, or in any manner wrongfully collected; and such allowance or redemption shall be made either by giving other stamps in lieu of the stamps so allowed for or redeemed, or by refunding the amount or value to the owner thereof, deducting therefrom, in case of repayment, the percentage, if any, allowed to the purchaser thereof; but no allowance or redemption shall be made in any case until the stamps so spoiled or rendered useless shall have been returned to the commissioner of internal revenue, or until satisfactory proof has been made showing the reason why the same cannot be so returned: Provided, That nothing herein shall be held as authorizing redemption of, or allowance for, any of the stamps allowance for which is prohibited by the provisions of An act relative to the redemption of unused stamps,' approved July twelfth, eighteen hundred and seventy-six. That claims for allowance on account of stamps arising under section thirty-four hundred and twenty-six of the Revised Statutes as restricted by an act relative to the redemption of unused stamps, approved July twelfth eighteen hundred and seventy-six, may be allowed, if presented within three years after the purchase of said stamps from the government, or a government agent for the sale of stamps, and not otherwise: Provided, That no existing claim for the redemption of or allowance for any internal-revenue stamps other than the two-cent documentary stamps shall be allowed, unless presented within one year from the date of the passage of this act: Provided further, That from and after June thirtieth, eighteen hundred and seventy-nine, no allowance shall be made, in any manner, for documentary stamps other than those of the denomination of two cents." By the proviso in the Act of July 12, 1875, ch. 181, a restriction is placed upon the authority of the commissioner to make allowances conferred by section 3426, R. S., in so far as such allowances relate to documentary stamps above the denomination of two cents, and by reason of such prohibition "all documentary stamps above the denomination of two cents, in order that the allowances may be made therefore under this section, shall be in the same condition when presented to the commissioner as they were in when issued by the internal revenue department, or that the person presenting them, on being so required by the commissioner, shall trace the history thereof, to the satisfaction of the latter, from their issue to their presentation." (1878) 15 Op. Atty.-Gen. 427. The allowance of a claim is conclusive in respect to disputed questions of fact, as the decision of the commissioner is the adjudication by the first tribunal to which the matter must by law be submitted, and when allowed the liability of the government is complete until in some appropriate form it is impeached. U. S. v. Kaufman, (1877) 96 U. S. 570. See also U. S. v. Savings Bank, (1881) 104 U. S. 733; Dugan v. U. S., (1899) 34 Ct. Cl. 458.. But see Woolner v. U. S., (1877) 13 Ct. Cl. 365, in which the court said that errors in the mere form of procedure by the commissioner not in violation of his powers and authority are wholly immaterial. See McKnight v. U. S., (1877) 13 Ct. Cl. 308; (1899) 22 Op. Atty.-Gen. 568. Jurisdiction of Court of Claims. - The allowance of a claim by the commissioner of internal revenue, under the authority of the statutes and treasury regulations, raises an implied promise on the part of the United States to pay any amount that might actually be due the claimant under such circumstances, and such a claim would be " founded upon a law of Congress" within the meaning of section 1059, R. S. U. S. v. Kaufman, (1877) 96 U. S. 569. See also U. S. v. Savings Bank, (1881) 104 U. S. 733. The discount allowed by section 3341, R. S., should be deducted if, for any cause enumerated in this section, stamps are returned to the commissioner of internal revenue, and only the amount for which the stamps were sold should be paid. American Brewing Co. v. U. S., (1898) 33 Ct. Cl. 351. A canceled deed of trust, executed to secure proposed bonds which were never issued, falls within the provisions of this section as to the stamps affixed thereon. (1875) 14 Op. Atty. Gen. 513. Payment by insurance companies to the owner of the value of stamps destroyed by fire is not a bar to the right of the owner to claim payment from the government in a case where recovery is sought for the purpose of reimbursing the insurance companies for the payments made by them to the extent of the value of the stamps. U. S. v. American Tobacco Co., (1897) 166 U. S. 474. The limitation imposed by section 3228, R. S., upon the presentation of claims to the commissioner of internal revenue does not apply to cases falling under the provisions of this section. (1878) 15 Op. Atty.-Gen. 427. But see (1875) 14 Op. Atty.-Gen. 513. Section 3427 provided for furnishing stamps to certain officers for sale. See Folger v. U. S., (1880) 103 U. S. 33; U. S. v. Cheeseman, (1875) 3 Sawy. (U. S.) 424; U. S. v. Butterfield, (1874) 7 Ben. (U. S.) 412. Section 3428 provided for regulations as to disposal and safe keeping of stamps. Section 3429 provided punishment for forging, counterfeiting, etc., or fraudulently using or selling stamps, etc. It was amended by Act of Feb. 27, 1877, ch. 69, 19 Stat. L. 248, and by Act of March 1, 1879, ch. 125, 20 Stat. L. 349. Section 3430 provided a penalty for selling or removing articles for sale without affixing stamps. It was amended by Act of March 1, 1879, ch. 125, sec. 19, 20 Stat. L. 351. See Matter of Rosey, (1873) 6 Ben. (U. S.) 507; U. S. v. Houghton, (1871) 26 Fed. Cas. No. 15,396; (1874) 14 Op. Atty.-Gen. 461; U. S. v. Goldback, (1877) 1 Hughes (U. S.) 529. Section 3431 provided a penalty for removing stamps from articles. Section 3432 provided a penalty for selling articles in Schedule A without affixing stamps. See U. S. v. Two Hundred and Thirty-Six Dozen Boxes Cosmetics, (1873) 6 Ben. (U. S.) 543; U. S. v. Houghton, (1871) 26 Fed. Cas. No. 15,396; U. S. v. Fenelon, (1871) 25 Fed. Cas. No. 15,085; (1874) 14 Op. Atty.Gen. 461; U. S. v. Fox, (1869) Deady (U. S.) 579; U. S. v. Brown, (1869) Deady (U. S.) 566; U. S. v. Walsh, (1867) Deady (U. S.) 281. Sections 3433, 3434 relate to manufacture in bonded warehouses of articles in which distilled spirits are used. They are given infra, pp. 788, 791. Section 3435 provided that persons offering for sale articles named in Schedule A should be deemed manufacturers. See U. S. v. Houghton, (1871) 26 Fed. Cas. No. 15.396; U. S. v. Fenelon, (1871) 25 Fed. Cas. No. 15,085; Cardinel v. Smith, (1867) Deady (U. S.) 197. Section 3436 exempted from tax medicines compounded according to pharmacopoeias. This exemption was extended by the Act of Feb. 8, 1875, ch. 36, sec. 22, 18 Stat. L. 312. Section 3437 provided that the assessment of unpaid taxes should be payable by stamps. See U. S. v. Goldback, (1877) 1 Hughes (U. S.) 529; Dandelet v. Smith, (1873) 18 Wall. (U. S.) 642; (1874) 14 Op. Atty.-Gen. 459. Schedule A (following section 3437) provided for the tax on medicines or preparations, perfumery, cosmetics, extracts, etc., based on retail price, and on matches and playing cards based on number in package. See Ferguson v. Arthur, (1886) 117 U. S. 488. SEC. 36. [Tax on manufactured opium manufacture by aliens prohibited.] That an internal-revenue tax of ten dollars per pound shall be levied and collected upon all opium manufactured in the United States for smoking purposes; and no person shall engage in such manufacture who is not a citizen of the United States and who has not given the bond required by the Commissioner of Internal Revenue. [26 Stat. L. 620.] This and the following sections 37-40 are from the Act of Oct. 1, 1890, ch. 1244, entitled "An act to reduce the revenue and equalize duties on imports, and for other purposes." SEC. 37. [Regulation of opium factories bond.] That every manufac`turer of such opium shall file with the collector of internal revenue of the district in which his manufactory is located such notices, inventories, and bonds, shall keep such books and render such returns of material and products, shall put up such signs and affix such number to his factory, and conduct his business under such surveillance of officers and agents as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may, by regulation, require. But the bond required of such manufacturer shall be with sureties satisfactory to the collector of internal revenue and in a penal sum of not less than five thousand dollars; and the sum of said bond may be increased from time to time and additional sureties required at the discretion of the collector or under instructions of the Commissioner of Internal Revenue. [26 Stat. L. 620.] See note to section 36. SEC. 38. [Stamps on opium, imported or domestic.] That all prepared smoking opium imported into the United States shall, before removal from the custom-house, be duly stamped in such manner as to denote that the duty thereon has been paid; and that all opium manufactured in the United States for smoking purposes, before being removed from the place of manufacture, whether for consumption or storage, shall be duly stamped in such permanent manner as to denote the payment of the internal-revenue tax thereon. [26 Stat. L. 621.] See note to section 36. Importation of opium, see CUSTOMS DUTIES; IMPORTS AND EXPORTS. SEC. 39. [Tobacco stamp laws to apply to opium stamps.] That the provisions of existing laws governing the engraving, issue, sale, accountability, effacement, cancellation, and destruction of stamps relating to tobacco and snuff, as far as applicable are hereby made to apply to stamps provided for by the preceding section. [26 Stat. L. 621.] See note to section 36. For provisions relating to tobacco and snuff, see supra, p. 731. SEC. 40. [Penalty for violation of opium provisions.] That a penalty of not more than one thousand dollars, or imprisonment not more than one year, or both, in the discretion of the court shall be imposed for each and every violation of the preceding sections of this act relating to opium by any person or persons; and all prepared smoking opium wherever found within the United States without stamps required by this act shall be forfeited. [26 Stat. L. 621.] See note to section 36, and amendment in following text. An Act To amend section forty of "An Act to reduce the revenue and equalize duties on imports, and for other purposes," approved October first, eighteen hundred and ninety, so as to authorize the sale of forfeited domestic smoking opium to the highest bidder. [Act of March 3, 1897, ch. 394, 29 Stat. L. 695.] [Sale of forfeited domestic opium.] That section forty of an Act entitled "An Act to reduce the revenue and equalize duties on imports, and for other purposes," approved October first, eighteen hundred and ninety, be amended by adding at the end of said section the words "and may be sold to the highest bidder, pursuant to the provisions of section thirty-four hundred and sixty, Revised Statutes, if not valued as therein provided at over five hundred dollars; but if valued at more than five hundred dollars the sale shall be made pursuant to the judgment of the court in the proceedings for condemnation or forfeiture." [29 Stat. L. 695.] By 1890, Oct. 1, ch. 1244, sec. 40, a penalty is fixed for violation of the law contained in secs. 36-39 of the same Act, relating to the manufacture of opium for smoking, and provides for the forfeiture of smoking opium found without the required stamps. R. S. sec. 3460, under which opium by this Act is to be disposed of, provides that in cases of seizure of goods, wares, etc., of a value of $500 or less, a certain appraisement is to be made, etc., and if no claim is interposed, the collector or deputy shall give ten days' notice of the sale of the same, and they shall then be sold at public auction, and the proceeds deposited to the credit of the secretary of the treasury. Under section 3334, R. S., as amended (see 1879, March 1, ch. 125, sec. 5), and other sections, goods taxable under the internal revenue laws sold by order of the court or by the collector are required to be sold subject to tax. The Act in the text permits the sale to be to the highest bidder. By 1887, Feb. 23, ch. 210 (1 Supp. R. S. sec. 538), the importation of opium into any port of the United States by any subject of the Emperor of China, and into any port of China by a citizen of the United States, is prohibited; and forfeiture as well as other penalties are provided for violation. Compilers' note, 2 Supp. R. S. 614. SEC. 38. [Stamp tax on playing cards regulations.] That on and after the first day of August, eighteen hundred and ninety-four, there shall be levied, collected, and paid, by adhesive stamps, a tax of two cents for and upon every pack of playing cards containing not more than fifty-four cards, manufactured and sold or removed, and also upon every pack in the stock of any dealer on and after that date; and the Commissioner of Internal Revenue, with the approval |