Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1905-10-17
Honolulu. Territory Of Hawaii,
OctObpr 18th 1905

October 18th, 1905.
Sir:-I send you herewith, for your
consideration. copy of Treasury De
cisions Nos. 922 and 925. regarding al.
coholc compounds labeled as medi.
cines, in compliance with the instruc.
tons in said Decisions. Please give
these decisions your attention.
tint. Rev. CIRCULAR No. 673)
TREASURY DEPARTMENT.
Office of Commissioner Of Internal
Revenue.
Washington, d. c., Sept. -, 1905.
IT. d. 1921
To Collectors of Internal Revenue:
Among the various alcoholic COM
pounds now on the market, advertised
and sold as medicine under the name
of whisky, bltters, tonic, cordials, etc.
there are some that are composed
chiefly of distilled spirits, or mixtures
thereof, without the addition of drugs
or medicinal ingredients in sufficient
quantities to change materially the
character of the alcoholic liquor
The fact that these compounds dur
ing the existence OF the statute impos'
: ing tax on proprietary medicines were
without the necessity OF investigation
into their medicinal character by the
terms of the law made subject to that
tax. because they were held out to the
public as medicines does not afford
ground for relieving the manufacture
ers from special tax as liquor dealers
under the provisions of section 32ii
Revised Statutes and amendments.
1t is held that the statute requires
the eXaction OF this special tax from
the manufacturer of every COMPOUND
composed OF distilled spirits, ever
though drugs are declared to hav,
been added thereto. when their pres
= ence is not discoverable by chemica
analysis or 1t is found that the guam
tity OF drugs In the preparation is Sc
small as to have no appreciable effec
on the alcoholic liquor of which tn,
compound is mainly or largely com
posed.
\ The same ruling applies to ever!
- edy for diseases and containing, in ad
dition to distilled spirits, only sub
stances or ingredients which, howeve
i large their quantity. are not OF a char
Il acter to impart any medicinal qualit.
to the compound; but where sub
!. stances undoubtedly medicinal in thei
4 character are combined with whisky o
other alcoholic liquor, and are used il
. sufficient quantity to give a medicina
:, quality to the liquor other than tina
" which 1t may inherently possess, sucl
!, compound is. of course, not to be In
cluded in this ruling.
The question, In each case. arsin
1, under the terms Of this circular will
:, be determined by this office, not mere
-. ly upon examination of the formul
submitted by the manufacturer OF tn
, compound, but upon result of the ana
ysis made in the chemical laborator
h here of samples obtained In the opel
h market and sent in by the local in
ternal revenue officers and agents.
a. The ruling as to these compounds Il
the fourth paragraph of Circular Nc
COS (Treasury Decisions. 1901, vol.
p. 2l0), that II they are composed O
spirits in combination with drugs
n herbs roots, ETC., and are held out q
e. remedies for diseases stated In label
n. on the bottles, they are regarded a
V. medicines until the facts ascertaineC
). as to the purpose for which they ar
3. usually sold or used, show them to b
r. beverages, and until such facts are oil
h, tanned druggists and merchants VIII
n sell these compounds In good faith q
d, medicines only are not to be called o
IN to pay special tax as liquor dealers O
IS account OF such sales" is hereby r
X, voked.
nd But in order that no injustice ma
be done to these druggists and me
&C. chants who, without holding speci
T. tax stamps as liquor dealers, now hay
B. in stock these compounds for sale {
R. medicines. this circular will not be p,
V. into effect until December I, 1906.
V. Collectors will, however, immediat
lly upon the receipt of this circula
!. send out notice to all druggists al
r merchants dealing in proprietary me
+ icnes In their districts who do N
a, hold the requisite special tax stamp
,s, liquor dealers, that on and after ID
es. cember |, 1905, they will be required
n' pay special tax for selling the alcohol
;, compounds coming within the rullr
y y. now promulgated, even when they Sc