Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1898-08-05
RULINGS FOR DRUGGISTS.
Commissioner Scott Explains Applica-
ton Of War Revenue Law.

=
ton Of War Revenue Law.
GIVES THE LEGISLATIVE INTER
PROBATION OF THAT PART OF
THE ACT RELATING TO MEDICI-
NAL ARTICLEsIT GOES FAR
THEIR THAN THE GENERAL DEF
INITIOS OF A PATENT OR PRO-
PRIETARY MEDICINE.
One of the most important rulings
made by Commissioner of Internal
Revenue Scott, at Washington, has just
been received and treats at great length
on the application of the war revenue
law to medicinal, patent and proprie-
tary preparations. The retail druggists
have been hit hard by the new revenue
law, and they have been confused about
the exact application Of the law in
many features of their trade Commits
sioner Scott has given an interesting
ruling, both as to retail and bulk pack
ages. Many intricate questions that
have arisen are answered for the bene-
fit of all retail and wholesale druggists.
Commissioner Scott. after quoting
schedule B of the new law, says:
''The first absolute prerequisite to
the imposition of the tax is that the
article should be medicinal in it's char
acter. 1t is to be observed. however,
that while some articles and substan-
ces are used exclusively, or nearly SO,
in materia medica, other articles and
substances which are not so exclusive
ly, or nearly used, may become medici-
nal medicinal articles, subject to a tax
being held out, and especially adver-
tised as medicines or specifics for any
disease affecting the human or animal
body. In this way certain articles US
ually regarded in the class of food or
beverages may be placed in the cate
CORY of taxable medicinal articles by
DClliS duNCl lloCQ dS lCll1CQ1Co Va W.
metics.
There is a common error prevailing
in the community to the effect that the
tax on medicinal preparations is a tax
exclusively on proprietary or patent
medicines, or those put up under some
trade malk. Nothing could be further
from the truth. The last sentence of
the proviso to section 20 is held by this
Office to be a legislative construction
and Interpretation of schedule B, and
it brings within the purview of the law
a vast variety of medicinal preparations
which are not proprietary, patented
or trade marked. The last clause of
section 20 reads as fellows:
1.-The stamp taxes provided for in
schedule B of this act shall apply to
all medicinal articles compounded by
any formula, published or unpublished,
which are put up in style or manner
similar to that of patent trademark
or proprietary medicine in general, or
otherwise as remedies or specifics for
any ailment, or as having any special
claim to merit, or to any peculiar adj
vantage in mode of preparation, quail
ity, use or effect
"This is undoubtedly entitled to pc
culiar weight as legislative interpre-
tation of that part of schedule B, which
relates to medicinal articles. This Office
constructs said clause as follows:
"'Any medicinal article which is COM
pounded by any formula, published or
unpublished will be held taxable I'M
der schedule B when It is
1. Put up in style or manner similar
to that of patent, trademark, or pro-
prietary medicine in general, or
2. Advertised on the package or
otherwise as (a) remedies or specifics
for any ailment, (b) as having any spe-
cial claim to merit, or (c) having any
peculiar advantage in mode of prepare
ton, quality, use or effect"
Under /, any medicine will be held
to be put up in style or manner
similar" ETC., when the package, car
ton, wrapper label bottle or container
resembles in one or more particu-
lars any make or brand of patent,
trademark, or proprietary medicine In
general" For example, the use OF
the makers name or any other
persons name in the pCssessive form
Immediately before the name Of the
medicine, as Smiths Pills" or the
use of any name Immediately follow
ing the name of the medicine. This
shall not be construed, however, to
prohibit the name of the physician
who was the author of the formula i'm
mediately following the name of the
medicine. Nor shall it be con-
strued to prohibit the name Of the
manufacturers being blown in the
bottle, or printed inconspicuously On