The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-11-05
PATENT MEDICINES AND LIQUOR TAX

7 :
cines which when used in excessive quantities
may produce intoxication, does ncs seem to be
warranted by the opinion OF the attorney general
nor by the facts The general question was
submitted by the State revenue agent to the at
torney general as TO whether or not Peruns and
other similar compounds were subject to the
tax imposed by article so6oa OF the Revised
Statutes. II is expressly provided by that ar
ticle that it shall not apply 10 the sale by drug
gists OF tinctures and drug compounds in the
preparation OF which such liquors or medieatcd
bitters are used and sold the prescription OF
physician or otherwise, and which tinctures
and drug compounds not Intoxicating bever-
ages prepared IN the evasion Of the provisions of
this chapter OF the local option laws" In con
STRUNG this article as applied to Peruna and
other medicines of this class the attorney gen
eral held as follows
IF, however, Peruna or any other similar
| product is tincture drug compound and is
not Intoxicating beverage prepared in the
/ evasion of the statute referred to nor of the
! local option law, then its selling by druggist
/ does not subject such druggist to the payment
OF the occupation tax even if it is capable OF
/ producing iutoxicaton"
| 1t seems that the State revenue agent was not
/ satisfied with this ruling he had already held
| that any medicine with sufficient liquor in it to
/ be capable of producing intoxication was subject
! to the tax and he was loath to be shaken from
/ his position. He prepared another letter and
! submitted it to the attorney general and the
answer Of the attorney general shows that while
| he has not receded from the opinion above quoted
| from, he could give but one answer to the ques-
/ ton in the form submitted The attorney gem
/ eral said, you state that Peruna is a product
which is capable of producing intoxication and
! you assume that it is neither a tincture nor a
drug compound and advised that If this
sumption he true, the sale subject to the
/ tax. The attorney general did not undertake TO
| hold that Peruna and like products were sub
| lect to the tax, but only held that the assump-
! tions of the State revenue agent, if true would
subject them to the tax. The State revenue
/ agent then fastened to get an interview that
1 he would instruct the tax to be collected on all
such medicines and that if they were in fact
tinctures and drug compounds, that fact could
/ be established in court.
1t seems to It's that the State revenue agent
/ has acted with immodcrate and undue haste in
an overzealous effort to enforce the revenue
laws OF the State 1t has probably not occurred
/ to him that there thousands OF honest and
honorable citizens in this State engaged in the
| drug business that have for years been selling
the medicines upon which the State revenue
| agent seeks TO lay a ban Of accommodation
/ and that If this ruling is enforced, they will
have to discontinue the sale not only OF the
medicines named in his interview, but also of
hundreds of other similar medicines many of
I which have become staple such as Wyeths Beef
! Wine and Iron, Wine OF Cocoa, Vim Marian
Browns Iron Bttcrs, Paines Celery Compound,
Liver Oil, Electric Bitters Red Cross Compound
Essence of Jamaica Ginger Essence Of Lemon
essence of all havorng extracts cologne bay
rum and other toilet articles too numerous to
| mention, all of which would be practical in
! ventory of the patent and proprietary medicines
Of the drug store, together with all compounds
and tinctures usually kept on sale in such es-
adjustments
1t is not enough TO say that if tax IS not
colleetable these citizens have their remedy in
court The law makes it criminal offense
to pursue an occupation subject 10 tax without
first paying the tax assessed, and every c zen in
this business is liable to be arrested by the
sheriff under a criminal prosecution for selling
/ any one or more of the customary articles in
/ the drug store capable of producing ntoxicaton
I That he may be innocent and may be acquitted
OF the charge does not to have occurred
I to the State revenue agent, as an acqulta would
/ be no compensation TO the man pursuing an hon |
est occupation and paying all just tax charges |
against it for the expense incident to the trial !
and for the disgrace and humiliation which he |
has been forced to undergo because Of a miscon- |
! struction OF the laws.
The ruling, If adhered to, must inevitably deny
| TO the druggist the right to pursue the sale OF |
1 these articles constituting as they do the large
/ bulk OF his business, or force him TO take out |
a liquor dealers tax. He can not afford TO
/ stand in daily jeopardy OF being prosecuted and |
sued Tor failure to pay the tax and to have to
incur the expense OF attorneys fees loss of time |
| disgrace and humiliation incident TO such legal |
| proceedings If he complies with the ruling and |
! discontinues the sale OF these articles he prac-
| tically takes an inventory OF his business carts
! out his goods and stays at the old stand ready
/ TO hll few prescriptions which have no intoxi-
| cants in them and to sell a few powders cap
sueS and pills OF course he can not afford |
/ 70 pay rents, maintain his expense account and
/ continue in business and he must take out
F., liquor dealers license or retire from business
altogether. II he takes out the liquor dealers
| license he is taxed doubiy as he already has to
| pay merchants occupation tax but this in
Justice Of double taxation IS a small part of
the evil. 1t the druggist takes out the LIQUOR
dealers license he must increase his revenue
to recoup this loss, Therefore he will sell the
liquor, the privilege for which he has paid, and
all the drug stores in the country or practically
all OF them, will be in competition with the
saloon, They will sell all kinds and characters
of intoXicants without limit in ncn-prohibitive
districts and the only difference between these
places and the open saloon will he that the
liduor will not he drunk on the premises and
the place win probably be more respectable and
inviting, encourage the drinking OF intoxicauts
and increase the amount of intoxieaton in the
country.
In local option districts the result win be
even worse. There few druggists in local
option districts who have liquor dealers license
authorizing them 70 sell even upon PRESCRIPTION !
Therefore intoNicants are not kept by them and
consequently not sold by them and the drinker
Of intoxcants finds it more difficult TO procure
the desired liquor If all druggists are by this
ruling as they will be practically compelled 10
take out LIQUOR dealers license in local option
districts, they will keep a stock OF wines and
liquors on hand to reeoup them for the nav
ment of the tax. Having it in possession. they
will desire 70 sell IL The sale ~ 4, 80 - |