The San Francisco call., 1898-04-28
BREWERS MUST
 PAY IN CASH
Tax Is Paid Only When the Stamps Are, Attached to
 the Barrels.
Riqht to the Seven and a Half Per Cont Discount Not Acquired by
 the Act of Purchase.

The Commissioner of Internal Revenue at Washington notified Collector Lynch yesterday of an important decision af- fecting all beer brewers in the United States with reference to the manner Of purchasing internal revenue stamps for beer in barrels, and discount of 71a per cent allowed on the same. According to the terms of the decision stamps must be paid for in cash and at their full face value.
 The decision was made by the United States Commissioner of Internal Revenue at Washington in the case of the Amer1- can Brewery Company of St. Louis, Mo-. vs. the United States. The contention arose out of an application by the com pany for beer stamps of the value or S25- OO0 The company rendered in payment for the same certified check for $23, ,125. being the amount of the face value of the stamps, less the deduction of 71a per centum allowed by section 3341 of the Re- vised Statutes of the United States. Such payment by check was in accordance with the usual course of business be- tween the claimant and the office of the Collector of Internal Revenue, at whose office a statement was made in substance
 i've are temporarily out of stamps. Leave your check and application and we will notify you when to call for the
 About month later the application and check were returned to the brewing company with the statement that owing Revised Statutes by the terms of section g of the act of July 24, 1897, the stamps could be purchased only Tor their fuli face value in cash.
 The following paragraphs from the de- cision will be found of interest:
 It Is made the duty of the Collector by Section 334l Revised Statutes, to keep on hand at all times sufficient supply of permits and supply of stamps equal in amount to two months sales m The s aw of he sale .ne ad no permit transactions involving the sale of stamps for future delivery.
 stamps which may be on hand at the time of sale. but it does not permit the making of agency in the sale of stamps was limited by law to a sale of the stock on hand and did not confer the right to sell for future delivery. The law makes 1t the duty of the Commissioners of Internal Revenue to prepare suitable stamps quantities as the need of the trade demands. The Collector gets his supply from the Commis- sioner, and his agency attaches to such stamps yond that he has power to bind the de- fendants in the sale of stamps.
 compelled to pay the full face value of the stamps purchased without deduction of 71kc per cent previously allowed by Section 334l, Revised
 The purchase of stamps by a brewer does not tax is paid when he attaches the stamp to the barrel for the purpose of putting the product on the market.
 The right to the 7h per cent discount is not consummated by the mere act of purchase. but is dependent upon the further condition of the stamps being used by the brewer
 Although the law uses the word 'sale'' as applicable to the delivery and transfer of stamps they do not thereby become com modty of merchandise in the market.
 The Collector in accepting drafts in payment of the tax acts without the authority of law and does not bind the United States.
 The Collectors agency in the sale of stamps is limited to the sale of stock on hand but does not confer the right to sell for future delivery.