Washington sentinel., 1899-11-25
Tonic eer taxable.

Any beverage, whether intoxicating
or otherwise, may be rendered taxable
as a medicinal preparation by deslgnat.
ing it as a tonic, II sold under a trade
mark or other claim OF proprietorship.
The decision was made ih the case Of
Samuel c. Palmer and others, manuiac-
turers and bottlers OF Lithia seltZer,
tonic beer, and Palmer's tonic beer,
through their attorney, Leon Tobriner,
Washington, D. c., who asked for a
reconsideration OF the ruling by the
Internal Revenue Office. rendered under
date of October 2, 1899, IN which the
above named preparations are held to
be taxable for certain reasons therein
stated.
This application for reconsideration is
based on the contention (I) that tonic
beer is not prepared from any private
formula, secret or occult method; (2)
that no claims are made for the exclusive
right to manufacture this tonic beer; 90
that 1t is not recommended to the public
asa proprietary medicine, or medicinal
proprietary article or preparation, or as
a remedy or specific for any disease.
Under the statute, it is only necessary
to show that preparation is held out or
advertised on the label or otherwise as
''tonic" to hold it taxable. if sold under
letters patent, trade mark, or other
evidence Of proprietorship.
The word "tonic," used in connection
with the word "beer," is an adjective,
qualifying the word beer" and is
defined By Webster, the prescribed
authority in this Department, as follows:
Increasing strength, or tone OF the
animal system, Obviating the effects of
debility and restoring healthy functions"
It is manifest, therefore, to make use
of the term "tonic beer" is to ascribe to
the preparation sold hereunder
the medicinal properties set forth
in the definition quoted above. This,
then, when considered with the fact that
the "tonic beer" is put up under a trade
mark, clearly renders the preparation
taxable, under the statute.
The medicinal nature of the tonic beer
can be definitely established, says the
ny aloAhIA hAIAAAOAs dAAa
by evidence furnished by counsel.
The following is taken from the affi-
davit of George w. Cook, filed by |
Attorney Tobriner:
THAT there is no secret in the pre-.
pairing OF same and that the component 1
parts are generally as follows: Sassafras,
winteTgreen, annis and gentian or /
quassia.'
BY reference to any standard authority,
for example, the United States Dispen-
satory, each of these ingredients will be
found to possess medicinal qualities,
and, in the case OF the latter two.
tonic properties will be found
ascrbed to them.
The fact that tonic beer" is prepared
with well known medicines, authorita-
lively stated to have valuable tonic
is sufficient in itself to render
the preparation taxable unoer the statute
when considered with the fact that it is
put up under an acknowledged trade
mark.
In conclusion, he was clearly Of the
opinion that there has been no new
evidence submitted that would warrant
any disturbance OF the action Of October
q 1899, holding these preparations to be
taxable, and, therefore, it is accordingly
adhered to.
In accordance with this decision the
collector was notified to proceed IN the
usual way to collect from Messrs. Palmer
& Johnson. and Hermann 8 Son, the
tax accrued by reason OF their failure to
stamp these goods since july I,
1898.