The Birmingham age-herald., 1908-02-15
Commissioner CapeIs Holds Out Hope to Many Anxious
 Members
DRINKS MUST NOT BE
 GIVEN AWAY OR SOLD
Commissioner capers Writes Letter To Savannah Man Telling About Law In the Case and Show
 ing What To Avoid.

Washington. February 14-(special)- hibtion-stricken south. Saloons may be closed and pigs eyes hard to find. but the United States government. through John c. Capers. commissioner of internal revenue. in a letter to an anxious inquirer in Savannah. writes that there is hope for the locker club.'
 If members will he real careful. i1e assures the gentleman whose name he is kind enough to withhold, there will be no interference on the part Of Uncle Sam. but members must be very careful or else they may be bounced upon and each viewed through the eyes of the law as a retail liquor merchant
 As long, however, as members keep their own private stock in their lock- CTS and refuse to sell to member. who through lack of providence. unusual thirst, or other reason, has suffered his stock to be depleted. there will be no trouble. But beware the wrath of the internal revenue inspector if it become known that member transferred df ]. or drinks to a fellow member for sideration. Now that the atmosphere cleared by the decision of the eomml sioner of revenue. however, the lock club may be expected to grow and nent ish like the Chevy Chase club in it's palm1 fest days, or the board of trade before an annual election The commissioner who, be it remembered, Is a southern man, writes as follows:
 Commissioners Letter.
 treasury Department, Washington, D.
 C. February 10, 1908.
 'sir:-I have delayed response to your letter of the 2d ulti., pending an investi- gation by this office concerning the meth cd of doing business in what are called locker clubs in your state. l think I can answer your queries in no better WAY than by outlining to you the position which l have taken in this matter. In brief, 1t is this:
 If an incorporated club sells liouor to it's members or to others who may be admitted to the club rolls, liability to spe- elal tax is incurred by the club. and Form Il must be signed by the officers Of the club, who become liable for their acts under the criminal sections of the law"
 If an incorporated club sells liquors to It's members or to others admitted to the club rooms it becomes liable to the payment of the special tax, and the form Il must be signed by every member of the club, and if at any time a new mem- Der is admitted to the club q new form II must be made out and a new special tax prepaid An Incorporated club in the eye of the revenue laws is merely firm doing business as a retail liquor dealer, and under the law each member of a firm must sign form Il and each member of such firm or unincorporated clubs be- comes liable as a dealer to all the pro- visions of the law.
 No Tax Liability.
 If an incorporated club has lockers in which each member places the liquor he desires to drink, the liquors not having been purchased from the club, and no sale is made by the club, but each mem Der uses his own liquor, then no special tax liability Is incurred.
 This is also true as to ar incorporated club where each member has his own locker in which he keeps his own stock of liquors from which exclusively he is served when he and those with him de- sire drink. In the latter case, how ever, care must be taken that those who come into the club room with member and there drink with him are not pur- chasers of the liquor, either from the member who opens his own private locker or from the club
 T may say that these unincorporated clubs In which members have their lock- CTS for the storage of their liquors will. or necessity, nave to be extremely careful that they do not render themselves liable in some manner to the special tax of a retail dealer, but there will be no unusual or special construction of the law to fit the state of Georgia. What is unlawful elsewhere will be held to be unlawful there; and that is lawful elsewhere will be permitted there, so far as the admin istration of the internal revenue laws is concerned. Respectfully,
 JOHN G. CATERS, Commissioner"
 w. S.