Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1898-07-14
RULINGS On STAMP TAXES
POINTS! SUBMITTED BY
BUSINESS MEN, DECIDED IN
WASHINGTON
Some Food Products Liuble-IfA Article
Contains Medicinal and Curative
Qualities 1t Must BE Stamped
Bankers and BrolSers' Licenses

A large number of queries by druggists
and manufacturers have been sent TO
Washington through the internal revenue
Offices regarding the application of the
stamp-tax law to proprietary articles. An
swcrs to some OF these queries have been
received by Collector Charles II. Tred. of
the Second District OF New York, says the
Times. Food products for which medi-
cinal qualities are claimed and when are
accompanied by advertising literature
extollng their curative merits are TO he
treated as medicinal preparations and tax
ed accordingly. Where the labels put on
proprietary articles describe the diseases
for which they are remedies the goods
must be stamped.
Commissioner n. Il. Scott of the inter-
nal revenue bureau has issued in circular
form general reply to the numerous In
qulrics as to what kind of medical prepar-
atoms and proprietary articles are taxa
bic under the new war revenue law. He
holds that the following named articles
are subject to the tax:
All medicinal proprietary articles, all
medicinal patent articles, all medicinal
Trademark articles, all medicinal articles
compounded by any formula published or
unpublished which arc put up in n style
or manner similar to that Of patent, trade
all medicinal articles. though not put up
in style or manner similar to patent med.
icncs, etc, II advertised on the packing
or otherwise "a remedies or specifies for
any ailmcnt or as having any special
claim to merit or to any particular advan-
tage In mode of preparation, quality, use,
or effect.
BANKERS AND BROKERS LICENSES
The commissioner also holds that all i'm
ported medicinal articles and perfumcries
and cosmetics are subject to the stamp
tax as similar articles of domestic mana
facture In addition to the import duty on
the same. No exception is made for AR
ticlcs sold in original and unbrokcn pack
ages, in which tho bottles or other in
closures were packed by the manufacture
CT before the Importation; all such must
he Unpacked for the purpose of stamping
the primary package.
Ginger ale is held not TO he liable to tax
alton, under the schedule 3 of the new
law. unless specially advertised as med-
cinal, and hop ale is held liable to tax as
fermcntcd liquor under section 1859 OF
the Revised Statutes, and the vendors
thereof are liable to specific tax as malt
liquor dealers.
Collector Treat expects to take up the
matter Of licenses for bankers and brok-
crs this week. A special deputy has been
licenses and persons entitled to them are
requested to iilc their applications as soon
as possible Bankers and brokers who do
I not make the msclVCS known to the in
ternal revenue officers within reason
able time will be looked up by special
deputies. II is expected that the inspec-
tors who have been at work among tho
tobacconists and cigar dealers since tho
latter part Of June Will be ready with
their final reports early this week
Commissioner Scott has ruled that Hy-
seia distilled water is taxable under the
first paragraph of Schedule of the new
law as n manufactured article.
! The commissioner has also ruled that
malt extract is liable to stamp tax under
Schedle b. the same as other medicines
The fact that the substance OF the article
has already paid tax as beer does not or.
crate to exempt 1t from tax IN it's new ant
medicinal form. All articles taxable un.
der Schedule p, in the hands Of retail
dealers on July |, 1898, must, when sold
be stamped according to to the retail pric,
as fixed by tho manufacturer.
There Is no objection under this act
says tho commissioner, ito the affixing bS
bank OF the requisite stamp to an un
stamped check presented for payment
and to the hanks collecting the amount
from the drawer or drawen Of the check
Cattle COMMISSION merchants are liable
turers OF tobacco or cigars who do no
sell leaf tobacco. but who purchase an,
temporarily store surplus stock intendec
for use at their several factories. vii
not be required to pay a special tax al
dealers In leaf tobacco, but such tax vii
he imposed should they engage in III,
selling of leaf tobacco. Warehouse re
ccipts for grain trans ferred through Gle
vators arc liable to tax.
The CommiSst Oner OF internal roVenun 4
receiving hundreds Of tclcgrams and let
ters asking hts construction Of tho wa
revenue law of 1895 upon the point as I,
who should pay for and afiix n stamp UP
on Geographic messages and upon expires
receipts or bills of lad!ng.
lie has made general answer to al
such inquiries 10 this effect: As to tn,
stamp on a tclegraphic message: the Law
simply imposes the tax of per cent up
on each message. The comm ssioner hold
therefore, that the sender of the messag,
Should stamp 1t,
In the case OF the stamp required to b,
afnNcd to an express receipt or bill o
lading given by an express or rallroa,
company or other common carrier 1t 4
held to be clearly evident that II an ex
press company or other carrier accept
goods for transportation II must issue I,
the conslgnor bill OF ladlng or receln
duly stamped and the stamp Cancelled
II such company or carrier refuses to &C
ccpt goods offered for transportation cx
ccrt on condition that the consignor shall
pay the price Of the stamp in addition T.
tho regular charge for the service per
formed or proposed to he performed tn
internal revenue laws afford no remedy