The Birmingham age-herald., 1905-11-01
IMPORTANT RULING
 ABOUT MEDICINES Certain Tonics Contain Too
 Much Whisky ACTION OF DEPARTMENT Instructions Issued to Internal ReVe-
ACTION OF DEPARTMENT
Instructions Issued to internal Reve. nue Collectors About Patent Med icnes and Stamp Tax-Ef-
 fective December 1.

| Internal Revenue Collector J. O. Thomp- son has received from the commissioner of 1 internal revenue of the treasury depart ment at Washington the ruling of the de-
 partment relative to the taxes on alco-
 holic compounds labeled as medicines and
 held out to the public as remedies for dis
 eases.
 This step was largely brought about by
 the agitation by a number of perodicals ] in the country against the sale of drugs
 containing alcohol. This law is effective December l.
 The ruling is as follows
 Among the various alcoholic com pounds now on the market. advertised and sold as medicine under the name of btters. tonic, cordials, etc, there are some that are composed. chiefly of dis titled spirits. or mixture thereof, with
 out the addition of drugs or medicinal ingredients in sufficient quantities to | change materially the character of the all coholic liquor.
 The fact that these compounds during
 the existence of the statue imposing 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 pubic as medi-
 cines, does not afford ground for relieving the manufacturers from the special tax
 as rectifiers and liquor dealers, or deal
 CTS therein from special tax as liquor
 dealers under the provisions of section S244 Revised Statues, and amendments.
 Ruling on Statute.
 "It is held that the statue requires the
 exaction of this special tax from the man.
 ufaeturer of every compound composed 1 of distilled spirits, even though drugs are 1 declared to have been added thereto when
 their presence is not discoverable by chemical analysis or 1t is found that the | quantity of drugs in the preparation is so small as to have no appreciable affects 1 on the alcoholic liquor of which the com pound is mainly or largely composed. "The same ruling applies to every alco- 1 holic compound labeled as a remedy for diseases and containing, in addition to
 distilled spirits, only substances or in- !, gredents which, however large their 1 quantity, are not of a character to im-
 part any medicinal quality to the com | pound; but where substances undoubtedly medicinal in their character are combined
 with whisky or other alcoholic liquor, and
 used in sufficient quantity to give medi-
 cinal quality in the liquor other than that which 1t may inherently possess, such
 compound Is, of course. not to be in- | cluded in this ruling.
 "The question in each case arising un- der the terms of this circular will be de- termined by this office, not merely upon | examination of the formular submitted | by the manufacturer of the compound, but upon the result of the analysis made in the chemical laboratory here of sam | ples obtained in the open market and
 sent in by the local internal revenue of 1 fcers and agents.
 ! Part of Ruling.
 "The ruling as to these compounds in | the fourth parag graph of circular No. eos, 1 That if they are composed of spirits in combination with drugs, herbs, roots, etc.. | and are held as remedies for diseases
 stated in labels the bottles, they are | 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 beverages, and until such facts are obtained druggists and merchants who sell these compounds in good faith as medicines only are not to be called on account of such sales, is hereby revoked. l Tn order that no injustice may be done
 to those druggists and merchants who, l without holding special tax stamps, as | liquor dealers now have in stock these compounds for sale as medicines this cir December 1, 1895.
 | collectors will, however, immediately upon receipt of this circular send out notice to all druggists and merchants dealing in proprietary medicines in their districts who do not hold the requisite
 special tax stamp as liquor dealers that on and after December 1. 1905. they will | be required to pay special tax for selling | the alcoholic compounds coming within | the ruling now promulgate even when they sell them in good faith for medical use only, never selling them as beverages,
 nor selling them knowingly to those buy l ing them for use as beverages"