shall be to conduct such investigations as may be necessary to secure the efficient enforcement of the tax imposed upon legacies and distributive shares of personal property by this Act, and the Commissioner of Internal Revenue may also from time to time assign one or more special agents to aid in such investigations. [31 Stat. L. 949.] This is from the Act of March 2, 1901, ch. 806, to amend the War Revenue Act. See, however, later provisions supra, p. 565. An Act To provide for refunding taxes paid upon legacies and bequests for uses of a religious, charitable, or educational character, for the encouragement of art, and so forth, under the Act of June thirteenth, eighteen hundred and ninety-eight, and for other purposes. [Act of June 27, 1902, ch. 1160, 32 Stat. L. 406.] [SEC. 1.] [Refunding legacy taxes for religious, etc., purposes.] That the Secretary of the Treasury, under appropriate rules and regulations to be prescribed by him, be, and he is hereby, authorized and directed to pay, out of any money in the Treasury not otherwise appropriated, to the corporations, associations, societies, or individuals as trustees or executors, such sums of money as have been paid by them as taxes upon bequests or legacies for uses of a religious, literary, charitable, or educational character, or for the encouragement of art, or legacies or bequests to societies for the prevention of cruelty to children, under the provisions of section twenty-nine of the 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. [32 Stat. L. 406.] SEC. 2. [Provides for refunding sums paid for documentary stamps used on export bills of lading. See supra, p. 781.] SEC. 3. [Refund of legacy tax on contingent interests.] That in all cases where an executor, administrator, or trustee shall have paid, or shall hereafter pay, any tax upon any legacy or distributive share of personal property under the provisions of the Act approved June thirteenth, eighteen hundred and ninety-eight, entitled "An Act to provide ways and means to meet war expenditures, and for other purposes," and amendments thereof, the Secretary of the Treasury be, and he is hereby, authorized and directed to refund, out of any money in the Treasury not otherwise appropriated, upon proper application being made to the Commissioner of Internal Revenue, under such rules and regulations as may be prescribed, so much of said tax as may have been collected on contingent beneficial interests which shall not have become vested prior to July first, nineteen hundred and two. And no tax shall hereafter be assessed or imposed under said Act approved June thirteenth, eighteen hundred and ninety-eight, upon or in respect of any contingent beneficial interest which shall not become absolutely vested in possession or enjoyment prior to said July first, nineteen hundred and two. [32 Stat. L. 406.] "Vested." Congress did not intend to make any distinction between the use of the terms "vested" in the first sentence, and "vested in possession or enjoyment " in the second sentence. In each case the subject of exemption is the same, viz., contingent interests in the technical legal sense, and the only difference between them is that in the one case, the tax having been paid, a refund is provided, and in the other case its imposition is forbidden. "I cannot think that the words vested in possession or enjoyment' imply an actual physical possession of the subject of the legacy, for if Congress had so intended it would have enabled any one whose interest had become vested, and therefore assignable, to avoid the tax by postponing the physical possession of the interest. But with respect to the taxes paid, or to be assessed, the law sought to exempt contingent interests which might never vest, and the words 'vested in possession or enjoyment, therefore, reasonably mean that the contingency had been removed prior to July 1, 1902." (1902) 24 Op. Atty. Gen. 98. [XI. PROVISIONS COMMON TO SEVERAL OBJECTS OF TAXATION.] Sec. 3441. [Drawback on articles in Schedule A for export.] [Repealed or superseded.] This section was as follows: "SEC. 3441. There shall be an allowance of drawback on fermented liquors and on all articles mentioned in Schedule A, on which any internal tax shall have been paid, except lucifer or friction matches, cigar-lights, and wax-tapers, equal in amount to the tax paid thereon and no more, when exported; to be paid by the warrant of the Secretary of the Treasury on the Treasurer of the United States, out of any money arising from internal duties not otherwise appropriated: Prorided, That no allowance of drawback shall be made for any amount, claimed or due, less than ten dollars, nor for any such articles exported prior to March thirty-first, eighteen hundred and sixty-eight. The evidence that any such tax has been paid as aforesaid shall be furnished to the satisfaction of the Commissioner of Internal Revenue by the person claiming the allowance of drawback, and the amount shall be ascertained under such regulations as shall be prescribed from time to time by the Commissioner, under the direction of the Secretary of the Treasury. And the said Secretary may make such regulations with regard to the form of certificates of drawback and the issuing thereof as he may deem necessary." Act of June 30, 1864, ch. 173, 13 Stat. L. 302; Act of March 3, 1865, ch. 78, 13 Stat. L. 482. It was amended by Act of March 1, 1879, ch. 125, sec. 17, 20 Stat. L. 350, by striking out the words any amount, claimed or due, less than ten dollars, nor for." The taxes on articles mentioned in Schedule A were repealed by Act of March 3, 1883, ch. 121, sec. 1, 22 Stat. L. 488, see supra, p. 757. The subject of drawbacks on fermented liquors is covered by the Act of June 18, 1890, ch. 432, 26 Stat. L. 162, supra, p. 722. Sections 3441-3465 constitute chapter 11 of title XXXV of the Revised Statutes. See Davis v. U. S., (1881) 17 Ct. Cl. 292; McKnight . U. S., (1877) 13 Ct. Cl. 308. Sec. 3442. [Certificates of drawback receivable for taxes.] [Repealed or superseded.] This section was as follows: "SEC. 3442. Certificates of drawback, issued in pursuance of the preceding section, may, under such regulations as may be prescribed by the Secretary of the Treasury, be received by the collector or his deputy in payment of taxes imposed by this Title." Act of June 30, 1864, ch. 173, 13 Stat. L. 302. See note under section 3441. Sec. 3443. [Fraudulent claims of drawback.] Whenever any person fraudulently claims or seeks to obtain an allowance of drawback on goods, wares, or merchandise on which no internal duty shall have been paid, or fraudulently claims any greater allowance of drawback than the tax actually paid as aforesaid, he shall forfeit triple the amount wrongfully or fraudulently claimed or sought to be obtained, or the sum of five hundred dollars, at the election of the Secretary of the Treasury. [R. S.] Act of June 30, 1864, ch. 173, 13 Stat. L. 303. Fraudulently claiming drawback on manufactured tobacco, see supra, p. 743. Sec. 3433. [Bonded manufacturing warehouses for articles intended for export, manufactured wholly or in part of domestic spirits or imported materials.] All medicines, preparations, compositions, perfumery, cosmetics, cordials, and other liquors manufactured wholly or in part of domestic spirits, intended for exportation, as provided by law, in order to be manufactured and sold or removed, without being charged with duty, and without having a stamp affixed thereto, shall, under such regulations as the Secretary of the Treasury may prescribe, be made and manufactured in warehouses similarly constructed to those known and designated in Treasury regulations as bonded warehouses, class. two: Provided, That such manufactory shall first give satisfactory bonds to the collector of internal revenue for the faithful observance of all the provisions of law and the regulations as aforesaid, in amount not less than half of that required by the regulations of the Secretary of the Treasury from persons allowed bonded warehouses. Such goods, when manufactured in such warehouses, may be removed for exportation, under the direction of the proper officer having charge thereof, who shall be designated by the Secretary of the Treasury, without being charged with duty, and without having a stamp affixed thereto. Any manufacturer of the articles aforesaid, or of any of them, having such bonded warehouse as aforesaid, shall be at liberty, under such regulations as the Secretary of the Treasury may prescribe, to convey therein any materials to be used in such manufacture which are allowed by the provisions of law to be exported free from tax or duty, as well as the necessary materials, implements, packages, vessels, brands, and labels for the preparation, putting up, and export of the said manufactured articles; and every article so used shall be exempt from the payment of stamp and excise duty by such manufacturer. Articles and materials except distilled spirits so to be used may be transferred from any bonded warehouse in which the same may be, under such regulation as the Secretary of the Treasury may prescribe, into any bonded warehouse in which such manufacture may be conducted, and may be used in such manufacture, and when so used shall be exempt from stamp and excise duty; and the receipt of the officer in charge, as aforesaid, shall be received as a voucher for the manufacture of such articles. Any materials imported into the United States may, under such rules as the Secretary of the Treasury may prescribe, and under the direction of the proper officer, be removed in original packages from on shipboard, or from the bonded warehouse in which the same may be, into the bonded warehouse in which such manufacture may be carried on, for the purpose of being used in such manufacture, without payment of duties thereon, and may there be used in such manufacture. No article so removed, nor any article manufactured in said bonded warehouse, shall be taken therefrom except for exportation, unde: the direction of the proper officer having charge thereof, as aforesaid, whose certificate, describing the articles by their mark, or otherwise, the quantity, the date of importation, and name of vessel, with such additional particulars as may from time to time be required, shall be received by the collector of customs in cancellation of the bond, or return of the amount of foreign import duties. All labor performed and services rendered under these regulations shall be under the supervision of an officer of the customs, and at the expense of the manufacturer. [R. S.] Act of May 28, 1880, ch. 108, sec. 14, 21 Stat. See also following text. This section is incorporated in the Dingley Act, section 15 of the Act of July 24, 1897. See CUSTOMS DUTIES, Vol. 2, p. 509. See also, (1901) 23 Op. Atty. Gen. 418. The word " 'imported" is used generally, and includes reimported, so that in the case of a bona fide exportation and reimportation of rum originally manufactured within the United States, under section 3019, R. S., from imported molasses, which was allowed drawback upon the importation of the rum, the importers were entitled to remove such rum under this section. (1884) 18 Op. Atty.Gen. 82. SEC. 15. [Bonded manufacturing warehouses for articles intended for export manufactured in whole or in part of imported materials or of materials subject to internal revenue tax.] That all articles manufactured in whole or in part of imported materials, or of materials subject to internal-revenue tax, and intended for exportation without being charged with duty, and without having an internal-revenue stamp affixed thereto, shall, under such regulations as the Secretary of the Treasury may prescribe, in order to be so manufactured and exported, be made and manufactured in bonded warehouses similar to those known and designated in Treasury Regulations as bonded warehouses, class six: Provided, That the manufacturer of such articles shall first give satisfactory bonds for the faithful observance of all the provisions of law and of such regulations as shall be prescribed by the Secretary of the Treasury: Provided further, That the manufacture of distilled spirits from grain, starch, molasses or sugar, including all dilutions or mixtures of them or either of them, shall not be permitted in such manufacturing warehouses. Whenever goods manufactured in any bonded warehouse established under the provisions of the preceding paragraph shall be exported directly therefrom or shall be duly laden for transportation and immediate exportation under the supervision of the proper officer who shall be duly designated for that purpose, such goods shall be exempt from duty and from the requirements relating to revenue stamps. Any materials used in the manufacture of such goods, and any packages, coverings, vessels, brands, and labels used in putting up the same may, under the regulations of the Secretary of the Treasury, be conveyed without the payment of revenue tax or duty into any bonded manufacturing warehouse, and imported goods may, under the aforesaid regulations, be transferred without the exaction of duty from any bonded warehouse into any bonded manufacturing warehouse; but this privilege shall not be held to apply to implements, machinery, or apparatus to be used in the construction or repair of any bonded manufacturing warehouse or for the prosecution of the business carried on therein. No articles or materials received into such bonded manufacturing warehouse shall be withdrawn or removed therefrom except for direct shipment and exportation or for transportation and immediate exportation in bond under the supervision of the officer duly designated therefor by the collector of the port, who shall certify to such shipment and exportation, or ladening for transportation, as the case may be, describing the articles by their mark or otherwise, the quantity, the date of exportation, and the name of the vessel. All labor performed and services rendered under these provisions shall be under the supervision of a duly designated officer of the customs and at the expense of the manufacturer. A careful account shall be kept by the collector of all merchandise delivered by him to any bonded manufacturing warehouse, and a sworn monthly return, verified by the customs officers in charge, shall be made by the manufacturers containing a detailed statement of all imported. merchandise used by him in the manufacture of exported articles. Before commencing business the proprietor of any manufacturing warehouse shall file with the Secretary of the Treasury a list of all the articles intended to be manufactured in such warehouse, and state the formula of manufacture and the names and quantities of the ingredients. to be used therein. Articles manufactured under these provisions may be withdrawn under such regulations as the Secretary of the Treasury may prescribe for transportation and delivery into any bonded warehouse at an exterior port for the sole purpose of immediate export therefrom. The provisions of Revised Statutes thirty-four hundred and thirty three shall, so far as may be practicable, apply to any bonded manufacturing warehouse established under this Act and to the merchandise conveyed therein. [30 Stat. L. 207.] This is from the Tariff Act of July 24, 1897, ch. 11. Provisions identical herewith were contained in the Tariff Act of Aug. 27, 1894, ch. 349, sec. 9. An accumulation of waste incident to manufacture, and discarded by reason of being unfit for sale, from articles imported and held in a bonded warehouse for use in the manufacture of articles for exportation in accordance with this section, may be destroyed in the presence of an officer designated by the collector of the port, accounted for as waste, and the manufacturer relieved from the payment of the duty thereon. (1902) 24 Op. Atty. Gen. 58. Sec. 3434. [Removal in bond to Pacific coast for exportation.] Any article manufactured in a bonded warehouse established under the preceding section, and situated in any of the Atlantic States, may be removed therefrom for transportation to a customs bonded warehouse at any port on the Pacific coast of the United States, for the purpose only, of being exported therefrom, under such regulations and upon the execution of such bonds or other security as the Secretary of the Treasury may prescribe. [R. S.] Act of July 13, 1866, ch. 184, 14 Stat. L. 155. Sec. 3444. [Collector's monthly account of articles in bonded warehouses, and articles exported.] Every collector who has charge of any warehouse in which distilled spirits, or other articles, are stored in bond, shall render a monthly account of all such articles to the Commissioner of Internal Revenue, by whom such account shall be examined and adjusted monthly, so as to exhibit a true statement of the responsibility of such collector thereon. In adjusting such account, the collector shall be charged with all the articles which may have been deposited or received under the provisions of law, in any warehouse in his district and under his control, and shall be credited with all such articles shown. to have been removed therefrom according to law, including transfers to other collectors and to his successor in office, and also whatever allowances may have been made in accordance with law to any owner of such goods or articles for leakage or other losses. And every collector from whose district any distilled spirits, tobacco, snuff, or cigars are shipped in bond, under the provisions of this Title, shall render a monthly account of the same to the Commissioner of Internal Revenue, showing the amount of each article produced and shipped in bond, the amounts of which the exportation is completed according to law, and the amount remaining unaccounted for at the end of each month; also any excesses or deficiencies on the amounts originally reported as shipped. [R. S.] Act of July 20, 1868, ch. 186, 15 Stat. L. 165; Act of June 6, 1872, ch. 315, 17 Stat. L. 255. Sec. 3445. [Changes of stamps, instruments for attaching and canceling.] The Commissioner of Internal Revenue may make such change in stamps, and may prescribe such instruments or other means for attaching, protecting, and canceling stamps, for tobacco, snuff, cigars, distilled spirits, and fermented liquors, or either of them, as he and the Secretary of the Treasury shall approve; such instruments to be furnished by the United States to the persons using the stamps to be affixed therewith, under such regulations as the Commissioner of Internal Revenue may prescribe. [R. S.] Act of July 20, 1868, ch. 186, 15 Stat. L. 142; Act of June 6, 1872, ch. 315, 17 Stat. L. 240. As to the constitutionality of legislation delegating such powers to the commissioner of internal revenue, see In re Kollock, (1897) 165 U. S. 537. Regulations promulgated under sections 3445 and 3446, R. S., have the force of law, and any failure to comply with them on the |