The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-09-15
SOME MEDICINES ARE LIQUORS
These Whose Chief Ingredient II Spirits Will
he subject to special Liquor TAX.

These Whose Chief Ingredient 10 Spirits Will
he subject 70 special Liquor Tax.
WASHINGTON, Sept. 14.-Under de-
oision rendered by the Commissioner OF
Internal Revenue every druggist who after
December Of this year may sell certain
so-called patent medicines having whisky
or other Distilled spirits as the chief In
gredient will be obliged to pay a special
tax to -" Government as liquor dealer.
The manufacturers Of these medicines will
DO required to pay the special tax imposed
upon rectifers and liquor dealers.
The subject Of placing certain patent
medicines in their proper classification has
been under consideration by the internal
revenue authorities for some time. In 1901
the matter was considered by the Com
missioner Of Internal Revenue, but II was
decided at that time that II the prepa ra-
tions in question are composed Of spirits
in combination with drugs. herbs. roots,
&c, and are held out as remedies for dis
to be regarded as medicines until the facts
ascertained as to the purpose for which
they are usually sold or used show them
to be bevera ges, and until such facts are
obtained druggists and merchants who sell
these eompotnds IN Ko9d faith as medicines
tax as liquor dealers on account Of such
sales"
This decision, according to the announce
ment to-day, is now revoked.
Commissioner Yerkes, who promulgated
the decision after conference with secre::
that several so-called medicines widely
advertised and extensively sold are really
not medicinal in their character beyond
the inherent medicinal quality which may
be possessed by the alcohol or other dis
titled spirits which forms their chief IN;
liquor tax on dealers handling those 80
called medicines Commissioner Yerkes gays:
"The fact that these compounds during
the existence Of the statute imposing tax
on proprietary medicines were, without
the necessity Of investigation into their
law made subject to that tax because they
were held out to the public as medicines,
does not AFFORD ground for relieving the
manufacturers from special tag as MGacr
dealers under the provisions Of section
1t is held that the statute requires the ex-
action Of this special tax from the manu-
facturer Of every compound composed
of distilled spirits, even though drugs are
declared to have been added thereto, when
cal analysis. or it Is found that the quantity
OF drugs in the preparation is 80 small as
to have no appreciable effect on the alco-
holic liquor of which the compound Is
mainly or largely composed.
.The same ruling applies to every alco-
holic compound labeled as remedy Cor
disease and contagion containing, in -addi-'
ton to distilled spirits, only substances
or ingredients which, however large their
quantity, are not Of q character to impart
any medicinal quality to tho compound
but where substances undoubtedly mo
dicinal in character are contained with
used In sufficient quantities to give a me
dicinal quality to the liquor other than that
which it may inherently possess. such com
pound is. OF course. not to be included in
this ruling. The question in each case
arising under the terms OF this circular will
be determined by this Office, not merely
upon examination Of the formula sub
mitted by the manufacturer Of the COM
pound, but upon the result Of the analysis
made in the chemical laboratory here Of
samples obtained in the open market and
sent In by the local internal revenue officers
and agents"
In order to relieve druggists and other
dealers from loss, the ruling will not 60 into
effect until D6Combar 1 NEXT