The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-11-14
THE TAX ON MEDICINES
CONTAINING MUCH ALCOHOL HAS
STIRRED UP THE DRUGGISTS.
Many Of Them Are Writing Letters to
the Revenue Agent and Others to
the Internal Revenue Collector

Austin, Texas, November 10 The act on
Of State Revenue Agent Cunningham in
placing certain medicines under the head Of
alcoholic beverages subject TO tax as H.
quor is causing many inquiries TO be made
with regard to the disposition Of the stock
on hand without lncuring the penalty for
the sale OF this medicated preparation.
There is a streak OF humor running
through the present excitement among the
druggists. This humor consists In the way
the people are mixing up the State revenue
agent with the Internal revenue collector.
The Posts Austin correspondent called
al the office of the internal revenue col
morning to learn whether or not he held
druggists selling these preparations liable
10 the payment of special tax as liquor
dealers by reason of sueh snlrs. The cor
respondent wasi informed by the collector
thar he did not 80 hold or rule. unless the
parties sell such preparations us beverages
and not medicine.
The fact SHOULD be established that drug
glsts or other parties sell these medicatcd
II tiers as n beverage, or To parties who
they know purchase them as such before
they are required TO pay the special tax.
The collectors forces In the Federal build
ing are kept busy replying TO letters on
this subject written by persons who are
under the impression TINT they viii be re-
quired to pay the special tax by reason of
the position taken by the State revenue
agent.
Inc IUlluNlnH extract from tue lhliNA VI
the internal revenue commissioner In im-
posing special tax on tile sole " alcoholic
ncdica,ed bitters or other preparations con.
tanning large percrntum OF alcohol ~
authority for the position assumed, and The
ruling made by the internal revenue cri-
letter of the Third district, which The
Post correspondent WAS allowed 10 copy
Compounds OF spirits or wines, with
drugs. herbs Of banks, called hlttvrs tomcs
etc held odt as remedies for diseases speci
fed on labels on bottles ana not as hev-
erages are 10 be regarded MS medicines
until the facts ascertlined by revenue odi-
GERS as TO the purpose for which they are
usually sold or used show them 70 be bav-
meantime the manufacturers Of these
compounds are not TO be called on 70 pay
spcclnl taxes therefor as rectihers ard
liquor deaicrs nor are druggists and dealers
In medicine only. to be required 10 pay
speclal tax therefor rs liquor denler5.
EVERY person who sells them as beverages,
knowingly 10 those who buy them for use
AS beverages Is required 10 pay special
tax as a liquor dealcr
From tho amount ~ stir In both the
offices Of the State revenue agent and the
internal revenue collector. II has been a
long time since an opinion on Anv subject
from the attorney general ~ the State has
created as much connection among any
class ~ business men as Attorney General
Reu's peruna opinion has created among
vrbolee9le druggists and liquor dealers.
MANY orders for Pcruna have been turned
down during the past week by wholesalers
oendlne a moro denrite settlement OF the
question by the courts