The Washington times., 1901-10-23
INToxIcANTs AS BEVERAGES.
Commissioner Yerkes Interdfcts
Drug store Liquor Selling.


j. w. Yerkes. Commissioner of Internal
Revenue, yesterday afternoon issued a
circular letter TO the Collectors of Internal
Revenue which is intended to prevent tb>
sale by druggists of spirituous and malt
drinks on physicians and fictitious pre-
scriptions. The circular letter is as fol-
lows:
BY the provisions of section 324s. re-
vised statutes, a druggist is permitted
to keep spirits and wines, and use them,
in combination with drugs, in the prepar-
alton of medicines that are not beverages,
and to sell such medicines without pay
ing special tax as a liquor dealer under
the Internal revenue laws of the United
States. But. under the uniform rulings of
this office and the decision of tile United
States courts, he can not, without sub
JectinS himself to this special tax. sell
spirits or wines that are not combined
with drugs or materials OF any kind TAX
ing these liquors out of the class Of bev-
erages. even when he sells the liquors on
physicians prescription and for medici-
nal use only.
Besides the medicinal compounds which
druggist is authorized to sell without
paying special tax as a liquor dealer, al
there are other compounds containing
spirits which, while they are not medi-
cines. are nonpotable articles that do not
come under the head of distilled spirits,
wines, or malt liquors. In contemplation
Of the internal revenue laws, and which,
therefore, he is entitled to sell without
paying special taxi. e.. toilet articles,
such as cologne and bay rum; ether with
al In hot
or ether with alcohol, for cleaning pur-
poses; castor oil and alcohol. for toilet
use; Florida water, violet water, etc, toilet
erticles made from alcohol; camphor and
alcohol; alcohol and ammonia and whit
ing, cleaning preparation; alcohol and
shellac. for painters. etc
Malt extracts which are compounds of
malt liquor and drugs, and which are
manufactured for use as remedies for
disease and not as beverages. as shown
by labels on the bottles. are medicinal
compounds; and druggists and merchants
who sell them in good faith, for medici-
nal use only. are not to be called CT 20
pay special tax as dealers in malt liquors
on account of such sales.
''As TO the compounds called 'bitters,'
'toTiies. and the like, the rule is that, il
they are composed of spirits in combina-
tion with drugs, herbs roots, etc, and
are held out as remedies for diseases
stated in the labels on the bottles, they
are to be regarded as medicines until the
facts ascertained as to the purposes for
which they are usually sold or used show
them to be beverages; and, until such
facts are obtained, druggists and mer-
chants who sell these compounds in good
faith as medicines only are not to be
called on to pay special tax as liquor deal
ers on account of such sales.
Every person who sells these COM
pounds as beverages, either by the bottle
or by the drink, or sells them knowingly
to those who buy them for use as bev-
erages. involves himself in liability to
criminal prosecution under the internal
revenue laws of the United States, unless
he holds a special tax stamp as liquor
dealer, or malt liquor dealer. as the case
may be, covering such sales.
The fact that compound may be used
as a medicine. and may be so intended
by the person making it. does not relieve
.he seller from the liability of a retail
liquor dealer, or retail malt liquor dealer.
if the compound is intoxicating. and Is
not sold as a medicine.
The true test in all such cases IS:
Was the compound sold in good faith for
medicinal purposes only, or was it sold
as a beverage, or sold knowingly to
persons who bought it for use as a bev-
erageT'