The San Francisco call., 1898-07-21
PRIVATE INSURANCE
 EXEMPT FROM TAX

Apropos of the recently passed stamp tax laws Collector Lynch has dug up an old decision made June Is, 1863, which in every particular fits the new law, It is follows:
 Under Schedule of the excise law, medi- cines or preparations made and sold, or re- moved and sold. wherever the person making or preparing the same has, claims to have any private formula occult art for making or preparing the same. or has or claims to have. any exclusive right or title to making or preparing them, or which are recommended or held out to the public by the makers, ven- dors or proprietors, proprietary medicines or as remedies or specifics for disease, are sub 5ect to stamp duties.
 act snail not apply to any compounded me dlcinal drug chemical, nor to any medf- zines zines compounded according to the United states or national pharmacopia, nor Of which the full and proper formula Is published in either of the dispensatories, formulartes or text books in common among physicians and apothecaries, nor in any pharmaceutical journal now used by any incorporated college Of pharmacy and not sold or offered for sale CT guise than that under which they may be sew orally denominated and laid down in said Journals.
 The Intention of the act of Congress fig plain. preparation made and sold as medicinal and claimed by the maker or vendor to be propri- etary, or recommended as possessing peculiar virtues imparted in the manufacture by the secret art or occult formula of the manufac-
 
 cines known in trade. or compounded accord ing to some published formula, or any me of medical science and not offered for sale un- der any guise or pretence of proprietorship. It matters not, therefore. what the conlmo- dfty may be, substance or essence, that is pre- pared and removed for sale. if 1t is claimed or pretended to be a compound of which the for mula Is secret. or which the right of making Is the exclusive property of one or more per sons. Though 1t be only bread rolled into pills. or rain water imprisoned in little vials hA taken dr0n ha c1ofr tense of the vendor determines it's character It cannot be treated as medicines for the cus- toner anu nreaa ana water only for the tax he professes to be. and if he seeks profit by deluding the public he must pay for his privi- must be taken for the fact, and when that of proprietary right secret art or knowledge ton of the drug will be pertinent or proper. Ii the packet, box, pot, vial or other enclosure is not stamped the penalties of the act are in- cured and ought 10 be enforced.
 Among other recent decisions is one affecting mutual benefit insurance con- panies, which provides that purely CO., operative or mutual fire insurance com panies, carried on solely by members for their protection and not for profit, are ex- empt. Whenever the business of the as- sociation or company goes beyond the point of protection 1t is liable to taxation at the rate provided by law. Cooperative building and loan associations are not ex- empt from any tax except upon their stock and bonds.
 Stamps may be affixed to the books of underwriters representing the tax on premiums charged on marine insurance.
 Wines bottled for aging purposes must be stamped at the time of bottling as wine bottled for sale.
 Statements in the form of goods i'm ported by mail are subject to stamp tax as regular entries. The tax Is required on original entries at the Custom-house but not on duplicates.