The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1871-04-29
Important 10 Druggists and Patent
Medicine Dealers.

Tie revenue officials Of Chicago have
been exercised about the proper method
of assessing tho tax on q certain patent
medicine manufactured and sold in TINT
city.
The Commissioner of Internal Revenue
has prescribed rules for the direction Of
all revenue officers in regard to such COM
pounds, lie says that us the preparation
inQuesti0n contains distilled spirits, there
seems to be no question that the manu-.
faCturCr Is liable TO some one Of the in.
ternal revenue taxes, but the difficulty is
10 determine which. If the preparation
when completed may DO properly classt.
fled as distilled spirits, then 1t should DO
taxed under section 50, and put up and
stamped under section % Of the act oil
July 90, 1868. 1rnot classified us distilled
spirits, but produced by being rectitisd or
mixed with distilled spirits or by infusion
Of any matter in spirits, it should be tax
cd under section AZ, unless found to he a
medicinal preparation, such as Is described
In schedule G. When other materials arc
compounded with distilled spirits to such
an extent rs that the prGdOminNnce Of
other materials reduces the proof Of the
spirits as shown by the United States
standard uydrOmctGr TO so degrees proof
spirits or less, 1t Is held not to be distilled
spirits within tho meaning Of that term
US used in section 50.
This distinction between distilled spir'
its and liquors compounded thcreffom is
based upon the alcoholic strength Of wine
and the recognized fact that when distill'
ed spirits arC reduced to 50 degrees proof
spirits by the addition Of any material, it
ceases to be recognized or called distilled
spirits.
Applying this rule revenue officers will
be able ut once to determine whether the
liquor should be taxed under section 80,
and put up md stamped under section %
or not. A liquor, though produced by
being rectitel or mixed with distilled
spirits or by the infusion Of any matter in
spirits, will not come under the provisions
Of section 48, if it is medicinal prepare
ton. This can generally 10 determined
from the way in which the label and nd,
vertisemCntS, and the manner in which
itisoEcrcd for sale. II the style of putting
up,labellmg advertising and selling,is sucL
as to show that the preparation is hello
out 10 the public US Il medical preparation
only, this may he taken as satisfactory
evidence Of It's medicinal character. 4
medical preparation is only subject to tax
under schedule G. When any person
making or preparing the same has, OF
claims to have, any private formula, OF
occult art for making the same, or has, OF
claims to have, any exclusive right or title
to making or preparing it; or when thu
preparation Is uttered, offered, vcndcd o,
exposed for sale under any letters patcn
or held out or recommended to the public
by the makers, vendors or propriet0rs, a!
proprietary medicine, or asa remedy ioI
specific disease; whether the preparation
is so made, uttered, vended or held GU
can also generally DO determined from thC
manner IN which it is putu and thu
character Of the labels and advertise
ments. These rules are hereafter TO bt
used in determining uuaer which Of tn
sections above named oil such production!
are to be taxed. G.