20 July 1868. Stamps to be affixed and cancelled.

to collectors.

indicate the weight and class of the article on which payment is to be made, and shall be affixed and cancelled in the mode prescribed by the commissioner of internal revenue; and stamps when used on any wooden package shall be cancelled by sinking a portion of the same into the wood with a steel die; also such warehouse stamps as are required To be furnished by this act, which stamps shall be furnished to the collectors of internal revenue requiring the same, who shall each keep, at all times, a supply equal in amount to three months' sales 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, 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, Anno Domini 1869. And every collector shall keep an account of the number, amount and denominate values of stamps sold by him to each manufacturer, and to other persons above described.

Ibid. 68.

Notice to be affixed to each

package.

Ibid. 69.

174. Every manufacturer of tobacco or snuff shall, in addition to all other requirements of this act 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, 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 this tobacco has complied with all the requirements of law. Every person is cautioned, under the penalties of law, not to use this package for tobacco again."

Any manufacturer of tobacco who shall neglect 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; or any person who shall remove any such label so affixed from any such package, shall, on conviction, be fined fifty dollars for each package in respect to which such offence shall be committed.

175. Any manufacturer of tobacco or snuff who shall remove, otherwise than as proCertain frauds to vided by law, or sell any tobacco or snuff without the proper stamps denoting the tax incur a forfeiture. thereon, or without having paid the special tax, or given bond as required by law, or

Ibid. 70. Absence of

who shall make false or fraudulent entries of mauufactures or sales of tobacco or snuff, or who shall make false or fraudulent entries of the purchase or sales of leaf tobacco, tobacco stems or other material, or who shall affix any false, forged, fraudulent, spurious or counterfeit stamp, or imitation of any stamp required by this act, to any box or package containing any tobacco or snuff, shall, in addition to the penalties elsewhere provided in this act for such offences, forfeit to the United States all the raw material and manufactured or partly manufactured tobacco and snuff, and all machinery, tools, implements, apparatus, fixtures, boxes and barrels, and all other materials which shall be found in the possession of such person, in the manufactory of such person or elsewhere.

176. The absence of the proper stamp on any package of manufactured tobacco or snuff shall be notice to all persons that the tax has not been paid thereon, and shall be stamp, evidence primâ facie evidence of the non-payment thereof; and such tobacco or snuff shall be of non-payment forfeited to the United States.

of tax.

Ibid. 71. Penalty for certain

law.

177. Any person who shall remove from any manufactory, or from any place where tobacco or snuff is made, any manufactured tobacco or snuff without the same being Violationsulente put up in proper packages, (a) or without the proper stamp for the amount thereon being affixed and cancelled, as required by law; or, if intended for export, without the proper warehouse stamp being affixed; or shall use, sell or offer for sale, or have in possession, except in the manufactory, or in a bonded warehouse, any manufactured tobacco or snuff, without proper stamps being affixed and cancelled; or shall sell, or offer for sale, for consumption in the United States, or use, or have in possession, except in the manufactory or in a bonded warehouse, any manufactured tobacco or snuff on which only the warehouse stamp marking the same for export has been affixed; shall, on conviction thereof, for each such offence, respectively, be fined not less than one thousand dollars nor more than five thousand dollars, and be imprisoned not less than six months nor more than two years. And any person who shall affix to any package containing tobacco or snuff any false, forged. fraudulent, spurious or counterfeit stamp, or a stamp which has been before used, shall be deemed guilty of a felony; and on conviction shall be fined not less than one thousand dollars nor more than five thousand dollars, and imprisoned not less than two years nor more than five years.

Ibid. 72.

178. Whenever any stamped box, bag, vessel, wrapper or envelope of any kind, conStamped portion taining tobacco or snuff, shall be emptied, the stamped portion thereof shall be destroyed of empty boxes to by the person in whose hands the same may be; and any person who shall wilfully be destroyed.

(a) A manufacturer of tobacco who had paid special tax as such, but not as a retail dealer, removed chewing tobacco in ten pound chests duly stamped, from his factory to his store, and there transferred the small packages from the chests to jars,

from which he sold the same at retail without stamp or caution notice: held, that he violated the 68th, 71st and 78th sections of this act. United States v. Rosenfield, 9 Int. R. Rec. 201.

20 July 1868.

neglect or refuse so to do shall, for each such offence, on conviction, be fined fifty dollars, and imprisoned not less than ten days nor more than six months. And any person who shall sell or give away, or who shall buy or accept from another, any such empty stamped box, bag, vessel, wrapper or envelope of any kind, or the stamped portion thereof, shall, for each such offence, on conviction, be fined one hundred dollars and imprisoned for not less than twenty days and not more than one year. And any manu- Penalty for facturer or other person who shall put tobacco or snuff into any such box, bag, vessel, wrapper or envelope, the same having been either emptied or partially emptied, shall, for each such offence, on conviction, be fined not less than one hundred nor more than five hundred dollars, and imprisoned for not less than one nor more than three years.

second use.

Ibid. 73.

established.

179. The commissioner of internal revenue, upon the execution of such bonds as he may prescribe, may designate and establish, at any port of entry in the United States, Export bonded bonded warehouses for the storage of manufactured tobacco and snuff, in bond, warehouses to be intended for exportation, selecting suitable buildings for such purpose, to be recommended by the collector in charge of exports at such port; to be known as export bonded warehouses, and used exclusively for the storage of manufactured tobacco and snuff in bond. Every such warehouse shall be under the control of the collector of internal revenue in charge of exports at the port where such warehouse is located, and shall be in charge of an internal revenue storekeeper assigned thereto by the commissioner of internal revenue. No manufactured tobacco or snuff shall be withdrawn or removed from any bonded warehouse without an order or permit from the collector in charge of exports at such port, which shall be issued only for the immediate transfer to a vessel by which such tobacco or snuff is to be exported to a foreign country, as hereinafter provided, or after the tax has been paid thereon; and such warehouse shall be under such further regulations as the commissioner of internal revenue may prescribe. Any manufactured tobacco and snuff may be withdrawn once, and no Tobacco may be more, from an export bonded warehouse, for transportation to any other port of entry in once. the United States, where an export bonded warehouse for the storage of manufactured tobacco and snuff may have been established, and such manufactured tobacco and snuff so withdrawn shall, on its arrival at the second port of entry, be immediately warehoused in an export bonded warehouse for the storage of manufactured tobacco and snuff, from which it shall be withdrawn only as provided by law.

withdrawn but

Ibid. 74.

warehouse.

180. Manufactured tobacco and snuff may be removed in bond from the manufactory, without payment of the tax, to be transported directly to an export bonded warehouse Removal, in for the storage of manufactured tobacco or snuff established at a port of entry as bond, to bonded herein before provided; and the deposit in and withdrawal from any bonded warehouse, the transportation and exportation of manufactured tobacco and snuff, shall be made under such rules and regulations, and after making such entries and executing such bonds and giving such other additional security, as may be prescribed by the commissioner of internal revenue, which shall in all respects, so far as applicable, conform to the provisions of law and regulations relating to distilled spirits to be deposited in or withdrawn from bonded warehouse or transported or exported. All tobacco and snuff intended for export, before being removed from the manufactory, shall have affixed to each package an engraved stamp indicative of such intention, to be provided and furnished to the several collectors, as in the case of other stamps, and to be charged to them and accounted for in the same manner; and for the expense attending the providing and affixing such stamps, twenty-five cents for each package so stamped shall be paid to the collector, on making the entry for such transportation; but the provisions of this section shall not limit the time for tobacco or snuff to remain in bond.

Stamps to be af moval.

fixed before re

Ibid. § 75.

be affixed where tobacco is manu

shares.

181. In all cases where tobacco or snuff of any description is manufactured, in whole or in part, upon commission or shares, or where the material from which any How stamps to such articles are made, or are to be made, is furnished by one person and made or manufactured by another, or where the material is furnished or sold by one person factured on with an understanding or agreement with another that the manufactured article is to be received in payment therefor, or for any part thereof, the stamps required by law shall be fixed by the actual maker or manufacturer, before the article passes from the place of making or manufacturing. And in case of fraud on the part of either of said persons in respect to said manufacture, or of any collusion on their part with intent to defraud the revenue, such material and manufactured articles shall be forfeited to the United States; and each party to such fraud or collusion shall be deemed guilty of a misdemeanor, and on conviction, be fined not less than one hundred dollars nor more than five thousand dollars, and imprisoned for not less than six months nor more than three years.

182. Every dealer in leaf tobacco shall enter daily in a book kept for that purpose, under such regulations as the commissioner of internal revenue may prescribe, the

Ibid. 76.

20 July 1868. Accounts of dealers in leaf tobacco.

hand.

What tobacco to

number of hogsheads, cases and pounds of leaf tobacco purchased by him, and of whom purchased, and the number of hogsheads, cases or pounds sold by him, with the name and residence, in each instance, of the person to whom sold, and if shipped, to whom shipped, and to what district; such book shall be kept at his place of business, and shall be open at all hours to the inspection of any assessor, collector or other revenue officer. And any dealer in leaf tobacco who shall neglect or refuse to keep such book, shall be liable to a penalty of not less than five hundred dollars; and on conviction thereof, shall be fined not less than one hundred dollars nor more than five thousand dollars, and imprisoned not less than six months nor more than two years.(a)

Ibid. 78. 183. It shall be the duty of every dealer in manufactured tobacco, having on hand Inventory to be more than twenty pounds, and every dealer in snuff having on hand more than ten made of stock on pounds, to immediately make a true and correct inventory of the amount of such tobacco and snuff, respectively, under oath or affirmation, and to deposit such inventory with the assistant assessor of the proper division, who shall immediately return the same to the assessor of the district, who shall immediately thereafter make an abstract of the several inventories filed in his office, and transmit such abstract to the commissioner of internal revenue, and a like inventory and return shall be made on the first day of every month thereafter, and a like abstract of inventories shall be transmitted while any such dealer has tobacco or snuff remaining on hand manufactured in the United States, or imported prior to the passage of this act, and not stamped. After the 15th day of February 1869, all smoking, fine-cut chewing tobacco or snuff, and after the 1st day of July 1869, all other manufactured tobacco of every description, shall be taken and deemed as having been manufactured after the passage of this act, and shall not be sold or offered for sale, unless put up in packages and stamped as prescribed by this act, except at retail by retail dealers from wooden packages stamped as provided for in this act; and any person who shall sell or offer for sale, after the 15th day of February 1869, any smoking, fine-cut chewing tobacco or snuff, and after the 1st day of July 1869, any other manufactured tobacco not so put up in packages and stamped, shall, on conviction, 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. (b)

be deemed manu

factured after the

passage of the act.

Ibid. 79. Penalty for falsely selling

tobacco so manufactured before the passage of the act.

Ibid. 80.

Stock on hand may be sold,

after being duly stamped.

Ibid. 81.

Tax on cigars.

Ibid. 82.

184. Any person who shall, after the passage of this act, sell or offer for sale any manufactured tobacco or snuff, representing the same to have been manufactured and the tax paid thereon prior to the passage of this act, when the same was not so manufactured, and the tax not so paid, shall be liable to a penalty of five hundred dollars for each offence; and shall be deemed guilty of a misdemeanor, and on conviction, shall be fined not less than five hundred dollars nor more than five thousand dollars, and shall be imprisoned not less than six months nor more than two years.

185. All manufactured tobacco and snuff, manufactured prior to the passage of this act, and held in bond at the time of its passage, may be sold for consumption in the original packages, with the proper stamps for the amount of the tax thereon affixed and cancelled as required by law; and any person who shall, after the passage of this act, offer for sale any tobacco or snuff, in packages of a different size from those limited and prescribed by this act, representing the same to have been held in bond at the time of the passage of this act, when the same was not so held in bond, shall, on conviction, be fined fifty dollars for each package in respect to which such offence shall be committed: Provided, That after the first day of January, Anno Domini 1869, no such tobacco or snuff shall be sold or removed for sale or consumption from any bonded warehouse, unless put up in packages and stamped as provided by this

act.

186. 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 exceeding three pounds per thousand, one dollar and fifty cents per thousand; when weighing exceeding three pounds per thousand, five dollars per thousand. And 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 shall, in his judgment, be most effective for the prevention of frauds in the payment of such tax.

187. Every person before commencing, or, if already commenced, before continuing,

(a) A dealer in leaf tobacco is criminally responsible for the omission of his bookkeeper to make the proper entries. United

States v. Auja, 10 Int. R. Rec. 52.

(b) So amended by act 22 December 1868. 15 Stat. 266

ment on oath.

the manufacture of cigars, shall furnish, without previous demand therefor, to the 20 July 1868. assistant assessor of the division a statement, in duplicate, subscribed under oath or Manufacturers to affirmation, accurately setting forth the place, and if in a city, the street and number furnish state of the street, where the manufacture is to be carried on; and if the same shall be manufactured for, or to be sold and delivered to, any other person, the name and residence and business or occupation of the person for whom the cigars are to be manufactured or to whom to be delivered; and shall give a bond in conformity with the pro- And give bonds. visions of this act, in such penal sum as the assessor of the district may require, not less than five hundred dollars, with an addition of one hundred dollars for each person proposed to be employed by him in making cigars, conditioned that he will not employ any person to manufacture cigars who has not been duly registered as a cigar-maker; that he will not engage in any attempt, by himself or by collusion with others, to defraud the government of any tax on his manufactures; that he will render truly and correctly all the returns, statements and inventories prescribed; that whenever he shall add to the number of cigar-makers employed by him, he will immediately give notice thereof to the collector of the district; that he will stamp, in accordance with law, all cigars manufactured by him, before he offers the same or any part thereof for sale, and before he removes any part thereof from the place of manufacture; that he will not knowingly sell, purchase, expose or receive for sale any cigars which have not been stamped as required by law; and that he will comply with all the requirements of law relating to the manufacture of cigars. The sum of said bond may be increased from Additional setime to time, and additional sureties required at the discretion of the assessor, or under curity may be required. the instructions of the commissioner of internal revenue. Every cigar manufacturer Certificate to be issued and posted. shall obtain from the collector of the district, who is hereby required to issue the same, a certificate setting forth the number of cigar-makers for which the bond has been given, which certificate shall be posted in a conspicuous place within the manufactory; and any cigar manufacturer who shall neglect or refuse to obtain such certificate, or to keep the same posted as herein before provided, shall, on conviction, be fined one hundred dollars. Any person manufacturing cigars of any description without first Penalty for viogiving bond as herein required, shall, on conviction, be fined not less than one hundred dollars nor more than five thousand dollars, and imprisoned not less than three months nor more than five years. Cigarettes and cheroots shall be held to be cigars under the meaning of this act.

lation.

Ibid. 83.

Ibid. 84.

188. Within thirty days after the passage of this act, every cigar manufacturer shall place and keep on the side or end of the building within which his business is carried signs to be on, so that it can be distinctly seen, a sign, with letters thereon not less than three erected. inches in length, painted in oil colors or gilded, giving his full name and business. Any person neglecting to comply with the requirements of this section shall, on conviction, be fined not less than one hundred dollars nor more than five hundred dollars. 189. It shall be the duty of every assistant assessor to keep a record, in a book to be provided for the purpose, to be open to the inspection of any person, of the name and Records to be residence of every person engaged in the manufacture of cigars in his division, the kept by assessors place where such manufacture is carried on, and the number of the manufactory, sessors. together with the names and residences of every cigar-maker employed in his division, and the assistant assessor shall enter in said record, under the name of each manufacturer, an abstract of his inventories and monthly returns. And each assessor shall keep a similar record for the district, and shall cause the several manufactories of cigars in the district to be numbered consecutively, which number shall not thereafter be changed.

and assistant as

Ibid. 285.

190. All cigars shall be packed in boxes, not before used for that purpose, containing, respectively, twenty-five, fifty, one hundred, two hundred and fifty, or five How cigars to be hundred cigars each; and any person who shall sell or offer for sale, or deliver or offer packed. to deliver, any cigars in any other form than in new boxes as above described, or who shall pack in any box any cigars in excess of the number provided by law to be put in each box, respectively, or who shall falsely brand any box, or who shall affix a stamp on any box denoting a less amount of tax than that required by law, shall, upon conviction, for any of the above-described offences, be fined for each such offence, not less than one hundred dollars nor more than one thousand dollars, and be imprisoned not less than six months nor more than two years: Provided, That nothing in this section shall be construed as preventing the sale of cigars at retail, by retail dealers who have paid the special tax as such, from boxes packed, stamped and branded in the manner prescribed by law.

191. Every person now or hereafter engaged in the manufacture of cigars, shall Ibid. 86. make and deliver to the assistant assessor of the division, a true inventory, in form Inventory to be prescribed by the commissioner of internal revenue, of the quantity of leaf tobacco, furnished annu

ally, on oath.

Monthly ab

stracts.

20 July 1868. cigars, stems, scraps, clippings and waste, and the number of cigar boxes and the capacity of each box, held or owned by him on the first day of January of each year, or at the time of commencing and at the time of concluding business, if before or after the first of January, setting forth what portion of said goods, and what kinds, were manufactured or produced by him, and what were purchased from others, which inventory shall be verified by his oath or affirmation endorsed on said inventory; and the assistant assessor shall make personal examination of the stock sufficient to satisfy himself as to the correctness of the inventory, and shall verify the fact of such examination by oath or affirmation taken before the assessor, also to be endorsed on the How books to be inventory. And every such person shall enter daily in a book, the form of which shall kept. be prescribed by the commissioner of internal revenue, an accurate account of all the articles aforesaid purchased by him, the quantity of leaf tobacco, cigars, stems or cigar boxes, of whatever description, manufactured, sold, consumed or removed for consumption or sale, or removed from the place of manufacture; and shall, on or before the tenth day of each and every month, furnish to the assistant assessor of the division a true and accurate abstract from such book, of all such purchases, sales and removals made during the month next preceding, which abstract shall be verified by his oath or affirmation; and in case of refusal or wilful neglect to deliver the inventory, or keep the account or furnish the abstract aforesaid, he shall, on conviction, be fined not less than five hundred dollars nor more than five thousand dollars, and imprisoned not less than six months nor more than three years. It shall be the duty of any dealer in leaf tobacco or material used in manufacturing cigars, on demand of any officer of internal revenue authorized by law, to render to such officer a true and correct statement, verified by oath or affirmation, of the quantity and amount of such leaf tobacco or materials sold or delivered to any person or persons named in such demand; and in case of refusal or neglect to render such statement, or if there is cause to believe such statement to be incorrect or fraudulent, the assessor shall make an examination of persons, books and papers, in the same manner as provided in this act in relation to frauds and evasions.

Penalty for neglect.

Dealers in leaf

tobacco to render statements on demand.

Ibid. 287.

Stamps to be furnished.

192. The commissioner of internal revenue shall cause to be prepared, for payment of the tax upon cigars, suitable stamps denoting the tax thereon; and all cigars shall be packed in quantities of twenty-five, fifty, one hundred, two hundred and fifty, and five hundred, and all such stamps shall be furnished to collectors requiring the same, who 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 on the first day of January, Anno Domini 1869; and every collector shall keep an account of the number, amount and denominate values of the stamps sold by him to each cigar Duty on foreign manufacturer, and to other persons above described: Provided, That from and after the passage of this act, the duty on all cigars imported into the United States from foreign countries shall be two dollars and fifty cents [per] pound, and twenty-five per centum ad valorem.

cigars.

Ibid. 88.

Notice to be affixed to each box.

Ibid. 89. Forfeiture of

193. 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 manufacturer's name, (a) the number of his 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, under the penalties of law, not to use this box for cigars again."

Any manufacturer of cigars who shall neglect to affix such label to any box containing cigars made by or for him, or sold or offered for sale by or for him, or any person who shall remove any such label, so affixed, from any such box, shall, upon conviction thereof, be fined fifty dollars for each box in respect to which such offence shall be committed.

194. All cigars which shall be removed from any manufactory or place where cigars are made, without the same being packed in boxes as required by this act, or without cigars in certain the proper stamp thereon denoting the tax, or without burning into each box with a

cases.

branding-iron the number of the cigars contained therein, and the name of the manufacturer, and the number of the district and the state, or without the stamp denoting the tax thereon being properly affixed and cancelled, or which shall be sold or offered (a) The act 10 April 1869 provides that either the proprietor's name or the manufacturer's name shall be printed on the label. 16 Stat. 43.