The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-12-25
REVENUE LAW RULING
OPINION OF INTEREST TO DRUGGISTS
AND PHARMACISTS.
Preparations of Medicine Which Are
Not Taxable Under Schedule
of War Revenue Act.

WASHINGTON, Dec. 2L-The commits
sioner of internal revenue to-day promul-
gated for the guidance of collectors the
opinion of Assistant Attorney General Boyd
in regard to the taxability of medical prepa-
rations under Schedule B of the act of June
1S, 1898. Later on the existing regulations
will be amended to conform Herewith. In
the course of his opinion Mr.. Boyd says:
ITO draw the distinction more clearly be-
tween medicinal articles or preparations
which I hold to be taxable under the pro-
visions of the law, and those which are not,
l will call attention to class of medicines
or preparations, samples of which have been
filed with me for examination, and which, in
my opinion, are not taxable. They are ar
ticles when are put up in bottles, phials or
other packages, more particularly for the
use Of physicians and pharmacists. They
are such articles as anti-tetanic serum, anti
diphtheric serum and many others of like
character. These articles are not put up in
the manner of patent, trademark or pro-
prietary medicines in general, nor are they
advertised to the public upon the packages
or otherwise as specifics or, remedies for
particular diseases, or as claiming especial
merit The names upon the bottles, phials,
or other packages, containing these prepara-
tons are simply medicinal or pharmaceu-
teal designations used to indicate the class
of medicines to which they belong and are
for the guidance of physicians, druggists
and pharmacists, through whom they are
dealt out to consumers as prepared pre-
scriptions. These articles have the tech
nical medical name upon the bottle or other
package, and also the formula by which
they are prepared. There is exclusive
proprietorShip or right of manufacture
claimed in them, but any pharmacist or
manufacturing druggist has the right to
make them after the formula given, and
there is no retail price or value stated on
the bottle or other package containing
them. 1t might make the distinction still
more plain to say that the class of medi-
clneS which, in my opinion, are taxable
under the provisions of the law, are such as
l have described above, which is sold to
consumer in the unbroken package in which
they are put up by the proprietor, manu-
facturer or compounder, with name, disease
and directions for use, without the inter
Vention of prescription or physician or
pharmacist. While, on the other hand, pro-
visions of the act do not reach such medic
inaI articles or preparations are put up
under pharmaceutical or classifying names
for the use of physicians in their practice,
or of pharmacists or druggists in their
trade.
"Calomel is a medicinal medicine or rem
edy compounded Il believe) by a formula
from mercury, sulphuric acid chloride of
sodium and distilled water 1t is a we'll
known remedy for certain diseases and
special merit is claimed for it in the treat
ment of diseases like bilious fevers, hepa-
tits, jaundice, bilious and painters collie and
other affections attended with congestion of
the portal system or torpidty Of the hepatic
function The medicinal article is put up in
quantities by the manufacturers after the
prescribed formula, and is sold to ply
sicians, pharmacists and druggists, and the
latter in turn prescribe it for the afflicted
and deal it out in quantities to suit the
emergency. Now calomel is not taxable I'M
der the provisions of the war revenue act,
for the reason that it does not come within
the description of articles declared to be sub
ject to tax under the provisions of the act.
In the first place it is not put up in the
manner or style of patent trademarks or
proprietary medicines in general; and in the
second place it is not advertised the
package in which it was contemplated by
the act, and even If the manufacturer or
compounder were to put on the inclure
containing the calomel the additional words
anti-bilious' or anti-hepatitis' it would, in
my opinion only have the effect to desig
nate more particularly the class of medicines
to which it belongs, and not to advertise it
as a specific or remedy for particular dis
ease. l have given this illustration and used
the name of a well-known medicinal article,
to make the distinction which / have at
tempted to draw the more easily under
stood"