or insolvent persons: Provided, That the tax on incomes for the year eighteen hundred and sixty-six shall be levied on the day this act takes effect.

Of § 123.

Tax on incomes of per

sons in U. S.

Rate.

To be deduct

ments.

That section one hundred and twenty-three be amended by striking out all after the enacting clause and inserting, in lieu thereof, the following: That there shall be levied, collected, and paid on all salaries of officers, or payments for services to persons in the civil, military, naval, or other employment or service of the United States, including senators and repre- service. sentatives and delegates in Congress, when exceeding the rate of one thousand dollars per annum, a tax of five per centum on the excess above the said one thousand dollars; and it shall be the duty of all paymasters and all disbursing officers, under the government of the United States, or persons in the employ thereof, when making any payment to any officers or persons as aforesaid, whose compensation is determined by a fixed salary, or upon settling or adjusting the accounts of such officers or persons to deduct and withhold the aforesaid tax of five per centum; and the payroll, receipts, or account of officers or persons paying such tax as afore-ed from paysaid shall be made to exhibit the fact of such payment. And it shall be Duty of acthe duty of the accounting officers of the Treasury Department, when counting officers in regard thereauditing the accounts of any paymaster or disbursing officer, or any officer withholding his salary from moneys received by him, or when settling or adjusting the accounts of any such officer, to require evidence that the taxes mentioned in this section have been deducted and paid over to the Treasurer of the United States, or other officer authorized to receive the same: Provided, That payments of prize money shall be regarded as income from salaries, and the tax thereon shall be adjusted and collected in like manner: Provided further, That this section shall not apply to payments made to mechanics or laborers employed upon public works: And provided further, That in case it should become necessary for showing the true receipts of the government under the operations of this section upon the books of the Treasury Department, the requisite amount may be carried from unappropriated moneys in the treasury to the credit of said account; and this section shall take effect upon salary and compensation for the month of March, eighteen hundred and sixty-seven.

to.

Provisoes.

Tax on distilled spirits.

All owners and

possessors of stills, &c. liable

for taxes.

Tax a lien on

distillery, spirits and apparatus.

Proviso, when removed.

SEC. 14. That there shall be levied, collected, and paid on all distilled spirits, upon which no tax has been paid according to law, a tax of two dollars upon each and every proof gallon, to be paid by the distiller, owner, or any person having possession thereof, and every proprietor and possessor of a still, distillery, or distilling apparatus shall be jointly and severally liable for the taxes imposed by law upon the spirits distilled therein; and the tax shall be a lien upon the spirits distilled, on the distillery used for distilling the same, with the stills, vessels, fixtures, and tools therein, and on the lot or tract of land whereon the said distillery is situated, together with any building thereon, from the time said spirits are distilled until the said tax shall be paid: Provided, That the tax upon any spirits distilled and removed from the place where the same were distilled, and not deposited in bonded warehouse as required by law, shall, at any time, upon knowledge of such fact obtained by the assessor or assistant assessor of the district where such spirits were distilled, be assessed by him upon the distiller of the same, and certified or returned to the collector, who shall immediately demand payment of such tax, and upon the neglect or refusal of payment by the distiller, shall proceed to collect the same by distraint. But this provision shall not exclude any other remedy or proceeding provided by law: Provided further, That the tax on all spirits shall be collected at no lower rate than the basis of first proof, and be less than that on first proof. shall be increased in proportion for any greater strength than the strength of first proof.

SEC. 15. That proof spirit shall be held and taken to be that alcoholic liquor which contains one half its volume of alcohol of a specific gravity

Tax never to

Proof spirit

defined.

ments, meters,

&c.

of seven thousand nine hundred and thirty-nine (.7939) ten thousandths at sixty degrees Fahrenheit; and the Secretary of the Treasury is hereby Hydrometers, authorized to adopt, procure, and prescribe for use such hydrometers, weighing and weighing and gauging instruments, meters, or other means for ascertaingauging instruing the strength and quantity of spirits subject to tax, or for the prevention or detection of frauds by distillers of spirits, and to prescribe such rules and regulations as he may deem necessary to insure a uniform and correct system of inspection, weighing, and gauging of spirits subject to tax throughout the United States. And whenever the Secretary of the Treasury shall adopt and prescribe for use any meter or meters, it shall be the duty of every owner, agent, or superintendent of a distillery, to make application to the collector of his district for such meter or meters, to be used in his distillery, and the same shall be furnished and attached to the distillery at the expense of the distiller, whose duty it shall be to furnish all the pipes, materials, labor, and facilities necessary to complete such attachment in accordance with the regulations of the commissioner of internal revenue, who is hereby further authorized to order and require such changes of or additions to distilling apparatus, connecting pipes, pumps or cisterns, or any machinery connected with or used in or on the distillery premises, or may require to be put on any of the stills, tubs, cisterns, pipes, or other vessels such fastenings, locks, or seals as he may deem necessary. And in all sales of spirits hereafter made, where not Gallon to mean otherwise specially agreed, a gallon shall be taken to be a gallon of first a gallon of first proof, according to the foregoing standard set forth and declared for the proof. inspection and gauging of spirits throughout the United States.

Who are dis

SEC. 16. That every person, firm, or corporation who distils or manutillers, and what factures spirits or alcohol, or who brews or makes mash, wort, or wash, is presumptive evidence thereof. for distillation or the production of spirits, shall be deemed a distiller. And the making or keeping by any person of grain, mash, wash, wort, or beer, prepared or fit for distillation, together with the possession by such person of a still or other apparatus capable of use for distilling, upon the same premises, shall be deemed and taken as presumptive evidence that such person is a distiller.

Inspection of spirits.

Proviso.

Collectors may

warehouses.

SEC. 17. That hereafter all distilled spirits, before being removed from the distillery, shall be inspected and gauged by a general inspector of spirits, who shall mark the barrels or packages in the manner required by law; and so much of the act approved July thirteen, eighteen hundred and sixty-six, as requires the appointment of an inspector for each distillery established according to law is hereby repealed: Provided, That such other duties as have heretofore been imposed upon inspectors of distilleries may be performed by such other duly appointed officers as may be designated by the commissioner of internal revenue.

SEC. 18. That whenever, in the judgment of the collector, there shall require transfer be a general bonded warehouse so located as to be conveniently accesof spirits to convenient bonded sible to a distillery, and in the same collection district, the said collector shall direct all spirits which may be stored in the bonded warehouse attached to such distillery to be transferred directly to a general bonded warehouse; and all spirits thereafter produced in such distillery shall be removed to a general bonded warehouse within the time and in the manner heretofore required for the removal to the bonded warehouse attached to the distillery.

Restrictions

upon removal of

&c.

SEC. 19. That no spirits shall be removed in any cask or package containing more than ten gallons from any premises or building in which spirits from place of manufacture, the same may have been distilled, redistilled, rectified, or manufactured, nor from any place or [of] storage, at any other times than after sunrising and before sun-setting, on pain of forfeiture of such spirits, and every person who shall violate this provision shall be liable to a penalty of one hundred dollars for each cask, barrel, or package of spirits removed. Any officer of internal revenue may be specially authorized by the com

Who may

make seizures,

missioner of internal revenue to seize any property which may by law be subject to seizure, and for that purpose such officer shall have all the and their power. power conferred by law upon collectors of internal revenue, and such special authority shall be limited in respect of time, place, and kind or class of property as the said commissioner may specify.

may seize bar

SEC. 20. That it shall be lawful for any internal revenue officer to When internal seize and detain any barrels, casks, or packages containing, or supposed revenue officers to contain, distilled spirits, when such officer has reason to believe the tax rels, &c. supimposed by law upon the same has not been paid, or that they are being posed to contain removed in violation of law, and such packages may be detained by such spirits. officer in a safe place until it can be satisfactorily ascertained by the proper officers whether the articles so seized are liable to be proceeded against for violations of the internal revenue laws.

facie evidence of

SEC. 21. That whenever any distilled spirits so found elsewhere than Sale or offer of in a bonded warehouse shall be sold or offered for sale at a less price than spirits at a less price than the the tax imposed by law thereon, such selling or offering for sale as afore- lawful tax to said shall be taken and deemed as prima facie evidence that said spirits be deemed prima have not been removed from a bonded warehouse according to law, and a violation of that the tax imposed by law on the same has not been paid, and the same law, and same shall without further evidence be liable to seizure and forfeiture: Pro- liable to seizure. vided, That this section shall not apply to spirits sold at public sale by an auctioneer who has paid the special tax as such under such rules and regulations, and upon such public notice as may be prescribed by the commissioner of internal revenue, nor to sales made by judicial or executive officers under the order or decree of any court.

Proviso.

Marks and

brands to be ef

faced by persons

SEC. 22. That it shall be the duty of every person who empties or draws off, or causes to be emptied or drawn off, distilled spirits or other article subject by law to tax, from a cask, barrel, or package, bearing any emptying casks of the marks or brands required by law, or marks intended for or pur- of spirits. porting to be, or designed to have the effect of such marks, immediately upon such cask, barrel, or package being emptied, to efface and obliterate said marks or brands; and any person who shall violate this provision shall be liable to a penalty of ten dollars for each offence; and any such cask, barrel, or package, from which said marks are not so effaced and ob- neglect. literated as herein required, shall be liable to forfeiture, and may be seized by any officer of internal revenue wherever found.

Penalty for

SEC. 23. That in case any bond under which any distilled spirits shall Liabilities of have been withdrawn from a bonded warehouse is forfeited by failure to feited bonds, and obligors of forfurnish or produce at the proper time the evidence required by law or proceedings regulation that the articles named in the bond were duly received and thereon. actually stored in the warehouse or district to which they were shipped, or by other breach of the obligation, the obligors in the bond shall pay the total amount of duties upon the articles removed under the bond, together with fifty per centum upon that amount, and the collector of the district in which such bond is or may be given may forthwith distrain upon any property, real or personal, subject to distraint or seizure, belonging to said obligors; and in case no such property can be found, the collector shall immediately forward the bond to the United States district attorney for the proper district for suit, and notice of the breach of the obligation of any such bond shall be forthwith forwarded by the collector of the district to the commissioner of internal revenue.

Amendment of 44 of act of

1866.

SEC. 24. That the forty-fourth section of the act of July thirteen, eighteen hundred and sixty-six, aforesaid, be amended by adding thereto as follows: Provided, That when any still used or fit for use in the production of distilled spirits, the same not exceeding one thousand dollars in value, has been or shall be seized for any violation of the laws relating to internal revenue, the same shall not be released by the court to the claimant, or any other intervening party, before judgment; and if declared stills seized for forfeited, such still shall be so destroyed as to prevent its use for the pur- violation of law.

Destruction of

Penalty for neglect or refusal to make due en

try, &c. of stills,

&c.

pose aforesaid, and the materials thereof shall be sold as other forfeited property. In case of seizure, as above, of a still exceeding in value the sum of one thousand dollars, its release to the claimant or any other intervening party, before judgment, shall be at the discretion of the court. SEC. 25. That the owner, agent, or superintendent of any still, boiler, or other vessel used in the distillation of spirits, who shall neglect or refuse to make true and exact entry and report of the same, or to do or cause to be done any of the things by law required to be done concerning distilled spirits, shall, in addition to other fines and penalties now by law provided, forfeit for every such neglect or refusal all the spirits made by or for him, and all the vessels used in making the same, and the stills, boilers, and other vessels used in distillation, and all materials fit for use in distillation found on the premises, together with the sum of five hundred dollars for each offence, to be recovered with costs of suits, and shall be deemed guilty of a misdemeanor, and be subject to imprisonment for a term not exceeding one year; which said spirits, with the vessels containing the same, with all the vessels used in making the same, and all said materials, may be seized by the collector and held by him until a decision shall be Limitation of had thereon according to law: Provided, That proceedings to enforce said forfeiture shall be commenced by such collector within twenty days after the seizure thereof. And the proceedings to enforce said forfeiture of said Nature of pro- property shall be in the nature of a proceeding in rem, in the circuit or ceedings. district court of the United States for the district where such seizure is made, or in any other court of competent jurisdiction.

action.

Penalty against officers for demanding,

accepting, or attempting to collect gifts or illegal fees or bribes.

Restriction

upon sale of forfeited spirits.

SEC. 26. That if any collector, deputy collector, assessor, assistant assessor, inspector, district attorney, marshal, or other officer, agent, or person charged with the execution or supervision of the execution of any of the provisions of this act, or of the act to which this is amendatory, shall demand, or accept, or attempt to collect, directly or indirectly, as payment or gift or otherwise, any sum of money or other property of value for the compromise, adjustment, or settlement of any charge or complaint for any violation or alleged violation of any of the said provisions, except as expressly authorized by law so to do, he shall be held to be guilty of a misdemeanor, and shall for every such offence be liable to indictment and trial in any court of the United States having competent jurisdiction, and on conviction thereof shall be fined in double the sum or value of the money or property received or demanded, and be imprisoned for a period of not less than one year nor more than ten years.

SEC. 27. That no distilled spirits which have been forfeited to the government in accordance with law shall be sold for a price less than the amount of the tax required thereon by law at the time of such sale. And if the officer having such spirits in charge shall have been unable, for a period of ninety days, to [sell] the same for the price equal to the tax, Destruction of such spirits shall be destroyed, under such rules and regulations as the spirits in certain commissioner of internal revenue may prescribe.

cases.

Penalty for

falsely personating revenue offi

cer.

Penalty for mixing for sale naphtha, &c. or knowingly selling or offering the same for sale.

SEC. 28. That if any person shall falsely represent himself to be a revenue officer of the United States, and shall in such assumed character demand or receive any money or other article of value from any person for any duty or tax due to the United States, or for any violation or pretended violation of any revenue law of the United States, such person shall be deemed guilty of a felony, and on conviction thereof shall be liable to a fine of five hundred dollars, and to imprisonment not less than six months and not exceeding two years, at the discretion of the court.

SEC. 29. That no person shall mix for sale naphtha and illuminating oils, or shall knowingly sell or keep for sale or offer for sale such mixture, or shall sell or offer for sale oil made from petroleum for illuminating purposes, inflammable at less temperature or fire test than one hundred and ten degrees Fahrenheit, and any person so doing shall be held to be guilty of a misdemeanor, and on conviction thereof by indictment or presentment

in any court of the United States having competent jurisdiction shall be punished by a fine of not less than one hundred dollars nor more than five hundred dollars, and by imprisonment for a term of not less than six months nor more than three years.

violate laws or

SEC. 30. That if two or more persons conspire either to commit any Penalty for offence against the laws of the United States, or to defraud the United conspiring to States in any manner whatever, and one or more of said parties to said defraud the conspiracy shall do any act to effect the object thereof, the parties to said United States. conspiracy shall be deemed guilty of a misdemeanor, and on conviction thereof shall be liable to a penalty of not less than one thousand dollars and not more than ten thousand dollars, and to imprisonment not exceeding two years. And when any offence shall be begun in one judicial district of the United States and completed in another, every such offence shall be deemed to have been committed in either of the said districts, and may be dealt with, inquired of, tried, determined, and punished in either of the said districts, in the same manner as if it had been actually and wholly committed therein.

Bond of in

SEC. 31. That all inspectors appointed under the provisions of the act or acts of which this is amendatory shall be required to give bonds, with spectors. security, approved by the Secretary of the Treasury or assessor of the district, in a sum not less than five thousand dollars, conditioned for the faithful discharge of the duties of such inspector.

SEC. 32. That any person who shall sell, give away, or otherwise dis- Penalty for pose of, any empty cigar box or boxes which have been stamped, without disposing of empty cigar first defacing or destroying such stamps, or shall refill any cigar box boxes or refilling without first defacing or destroying such stamp, shall on conviction of the same without defacing or either offence be liable to a penalty of one hundred dollars or to imprison- destroying ment not exceeding sixty days, or both, in the discretion of the court, with stamps. the costs of the trial, and it shall be lawful for any cigar inspector or revenue officer to destroy any empty cigar box upon which a cigar stamp shall be found.

Tonnage duty

be uniform.

SEC. 33. That the tonnage duty now imposed on all ships, vessels, or steamers engaged in foreign or domestic commerce, shall be levied but on all vessels to once within one year, and when paid by such ship, vessel, or steamer, no further tonnage tax shall be collected within one year from the date of such payment.

Repeal of conflicting acts, and acts imposing

roads.

SEC. 34. That all acts or parts of acts inconsistent with this act, and all acts and parts of acts imposing any tax upon advertisements, or the gross receipts of toll roads, are hereby repealed: Provided, That this act shall not tax on advertisebe construed to affect any act done, right accrued, or penalty incurred, ments and gross under former acts, but every such right is hereby saved; and all suits receipts of toll and prosecutions for acts already done in violation of any former act or acts of Congress relating to the subjects embraced in this act may be commenced or proceeded with in like manner as if this act had not been passed; and all penal clauses and provisions in existing laws, relating to the subjects embraced in this act, shall be deemed applicable thereto.

No. 23.- MARCH 26, 1867.

CHAP. VIII. — An Act to exempt Wrapping Paper, made from Wood or Cornstalks, from Internal Tax, and for other Purposes.

Be it enacted, &c. That, from and after the passage of this act, wrap ping paper, made of wood or cornstalks, shall be exempt from internal

tax.

Stat. at Large, Vol. XV. p. 6. Wrapping paper made of wood or cornstalks exempt from internal

All banks to

SEC. 2. That every national banking association, State bank, or tax. banker, or association, shall pay a tax of ten per centum on the amount of notes of any town, city, or municipal corporation paid out by them af- pay 10 per cent. ter the first day of May, Anno Domini eighteen hundred and sixty-seven, town, &c. paid

on notes of any

out by them.