Manufacturer of adulterated butter or process or renovated butter: Fine, not less than $1,000 and not more than $5,000.

Dealer in adulterated butter: Fine, not less than $50 and not more than $500.

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SEC. 3238 [R.S.]. All special taxes imposed by * shall be paid by stamps denoting the tax, and the Commissioner of Internal Revenue is required to procure appropriate stamps for the payment of such taxes. SEC. 22. Tax paid by stamp.-The payment of special tax is evidenced by stamp issued by collectors to taxpayers upon receipt of properly verified return on Form 11 accompanied by remittance of the full amount due. Stamps are issued in sheet form without month coupons for retail dealers in uncolored oleomargarine, where taxes are paid for a full year and no penalty on account of failure to make return in time is incurred. Stamps are also issued with coupons for such dealers in case tax is paid for a portion of a year only or penalty is incurred, and for all other classes of special taxpayers coming within the scope of these regulations.

Collectors will distinctly write or print the taxpayer's registered name, address of the particular place of business, designated by street and number (T. D. 18912), on the stamp before it is delivered or mailed to the taxpayer. Special tax stamps will be transmitted by ordinary mail, unless it is desired that they be transmitted by registered mail, in which case 10 cents additional to pay registry fee should be remitted with the return.

Collectors and their deputies are forbidden to issue receipts for moneys received for special taxes. (Sec. 3183, R. S., as amended.)

SEC. 23. Special tax stamp to be posted. Every person engaged in any business, avocation, or employment, who is thereby made liable to a special tax, shall place and keep conspicuously in his establishment or place of business all stamps denoting the payment of said special tax; and any person who shall, through negligence, fail to so place and keep said stamps, shall be liable to a penalty equal to the special tax for which his business rendered him liable, and the costs of prosecution; but in no case shall said penalty be less than ten dollars. And where the failure to comply with the foregoing provision of law shall be through willful neglect or refusal, then the penalty shall be double the amount above prescribed, provided, that nothing in this section shall in any way affect the liability of any person for exercising or carrying on any trade, business, or profession, or doing any act for the exercising or carrying on, or doing of which a special tax is imposed by law, without the payment thereof. (Sec. 3239, R. S.)

Loss of stamps.--When a special-tax stamp has been lost or destroyed, such fact should be reported to the collector at once for the purpose of obtaining from him a certificate of payment. In such cases the collector will issue certificate of payment of the special

tax, on Form 785 (formerly 7541), which must be posted in place of the stamp, otherwise liability as above for failure to post stamp will be incurred.

SEC. 3241 [R. S.]. When any person who has paid the special tax for any trade or business dies, his wife or child, or executors or administrators or other legal representatives, may occupy the house or premises, and in like manner carry on, for the residue of the term for which the tax is paid, the same trade or business as the deceased before carried on, in the same house, and upon the same premises, without the payment of any additional tax. And when any person removes from the house or premises for which any trade or business was taxed to any other place, he may carry on the trade or business specified in the collector's register at the place to which he removes, without the payment of any additional tax:

Provided, That all cases of death, change, or removal, as aforesaid, with the name of the successor of any person deceased, or of the person making such change or removal, shall be registered with the collector, under regulations to be prescribed by the Commissioner of Internal Revenue.

SEC. 24. Change of ownership.-(a) Through death.-Whenever any person who has paid special tax dies, his wife or child, or executors or administrators, or other legal representatives, may carry on such business for the remainder of the term for which tax has been paid without any additional payment, subject to the conditions hereinafter stated. The wife or child, or executors or administrators or other legal representatives of the deceased taxpayer must, however, execute Form 11. The form thus executed must show, also, the name of the original taxpayer, together with all other data required. (As to liability in case of failure to register, see sec. 26.)

(b) From other causes.-A receiver or referee in bankruptcy may continue the business under the stamp issued to the bankrupt taxpayer at the place and for the period for which the tax was paid. An assignee may continue business under his assignor's special-tax stamp without incurring special-tax liability. A wife to whom her husband has sold his business, or vice versa, may continue business under such stamp. In each of these cases the change must be registered with the collector in a manner similar to that required by subsection (a).

(c) Changes in firm.-When one or more members of a firm or partnership withdraw, the business may be continued by the remaining partner or partners under the same special-tax stamp for the remainder of the period for which the stamp was issued to the old firm. The change shall, however, be registered in the same manner as required in subsection (a). Where new partners are taken into a firm, the new firm so constituted can not carry on business under the special-tax stamp of the old firm. The new firm must make return and pay its own special tax reckoned from the first day of the month. in which it began business, even though the name of such firm be the

same as that of the old. Where the members of a partnership which has paid special tax form a corporation to continue the business, a new special-tax stamp must be taken out in the name of the corporation.

(d) Change in corporations.-A corporation may, upon application to the collector, change its name without creating a new special-tax liability, provided its charter permits such a change. A copy of the charter must be filed with the application and the stamp forwarded to the collector for proper notation. An increase in the capital stock of the corporation does not create a new special-tax liability if the laws of the State under which it is incorporated provide for such increase without the formation of a new corporation. A stockholder in a corporation who after its dissolution continues the business incurs new special-tax liability.

SEC. 25. Removal of place of business.-(a) Procedure by taxpayer.Whenever a special-tax payer desires to remove his business to a location other than that specified in his last return on Form 11 (see sec. 14), and stated in his special-tax stamp (see sec. 22), he should, not later than the end of the month in which the removal occurs, register the change of location with the collector of the district within which the old place of business is located, by filing an additional Form 11, executed under oath, as required by section 14, and designated "removal registry," setting forth the time and the place where he intends to engage in the business described. If such taxpayer is a firm or corporation, the names and residences of all the members or principal officers and the titles of such officers, shall again be recorded. The taxpayer's special-tax stamp must accompany the return for notation by the collector of the change of location. As to liability in case of failure to duly register a change of location, see section 26. (b) Procedure by collector-Removal within district.-When registration is made by a special-tax payer in the manner specified in subdivision (a), of the removal of his business to a new location in the same district, the collector will enter in his alphabetical list (Record 10, see sec. 27) on the card for said taxpayer, the place to which such removal is made and the date of the removal. The same information shall also be entered clearly on the face of the special-tax stamp, which will be returned immediately to the taxpayer, by the collector, for posting.

(c) Procedure by collector-Removal to another district. When the removal is to another collection district, the collector will note the transfer on his card (Record 10) for the taxpayer, stating clearly the location where the business is to be removed, and shall then transmit the stamp to the collector of the district to which said business is removed, who will make out a Record 10 card as in the case of original registration in his district, correct the location shown on the

stamp and note also thereon his name, title, date, and district, and then forward the stamp to the taxpayer.

SEC. 26. Failure to register change or removal.-Any person succeeding to and carrying on a business for which special tax has been paid by a deceased taxpayer, and any taxpayer removing his business, with respect to which he has himself paid tax, to a place other than that for which tax was paid, without registering such change or removal, will be regarded as liable to additional tax, and subject to the penalty prescribed in section 3176, R. S., as amended, for failure to make return (see sec. 18), and also to the penalty for carrying on business without payment of special tax. (See sec. 21.)

SEC. 3240 [R. S.]. Each collector of internal revenue shall, under regulations of the Commissioner of Internal Revenue, place and keep conspicuously in his office, for public inspection, an alphabetical list of the names of all persons who shall have paid special taxes within his district, and shall state thereon the time, place, and business for which such special taxes have been paid, and upon application of any prosecuting officer of any State, county, or municipality he shall furnish a certified copy thereof, as of a public record, for which a fee of one dollar for each one hundred words or fraction thereof in the copy or copies so requested may be charged.

SEC. 27. Collector's record of persons who paid special tax. Each collector is required to keep always open to the public and up to date, an alphabetical list of the names of all persons who have paid their special taxes. Such list is known as Record 10 and consists of cards on each of which is required to be shown the name of each taxpayer (if a manufacturer, his factory number), the place of business, and period for which tax has been paid. The entries on the cards will be made from the returns on Form 11, which show tax payment, or, in case of removal from another district or to a new location, they will be made as provided in section 25. It is permissible for any one to make a copy of such list, provided an unreasonable time is not consumed in so doing, when other parties may be waiting to consult the record.

SEC. 28. State or municipal regulation of business.-The payment of any tax imposed by the internal-revenue laws for carrying on any trade or business shall not be held to exempt any person from any penalty or punishment provided by the laws of any State for carrying on the same within such State, or in any manner to authorize the commencement or continuance of such trade or business contrary to the laws of such State or in places prohibited by municipal law; nor shall the payment of any such tax be held to prohibit any State from placing a duty or tax on the same trade or business, for State or other purposes. (Sec. 3243, R. S. See Plumley v. Massachusetts, 155 U. S. 461. See also sec. 11.)

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CHAPTER III.

MANUFACTURERS OF OLEOMARGARINE.

SEC. 3 [Act Aug. 2, 1886, as amended by sec. 2, Act May 9, 1902]. * Every person who manufactures oleomargarine for sale shall be deemed a manufacturer of oleomargarine.

And any person that sells, vends, or furnishes oleomargarine for the use and consumption of others, except to his own family table without compensation, who shall add to or mix with such oleomargarine any artificial coloration that causes it to look like butter of any shade of yellow shall also be held to be a manufacturer of oleomargarine within the meaning of said Act, and subject to the provisions thereof.

SEC. 29. Definition.—(a) A manufacturer of oleomargarine is one who manufactures oleomargarine for sale, or one who adds to or mixes with oleomargarine any artificial coloration that causes it to look like butter of any shade of yellow, and sells, vends, or furnishes the same for the use and consumption of others, except to his own family table without compensation.

(b) A private individual may color oleomargarine not artificially colored without liability as a manufacturer if the oleomargarine is furnished to his own family table without compensation. Those who may be served at such family table include only father, mother, children, servants, and guests who are entertained without charge, and those for whose support the law ordinarily requires the head of a family to provide.

(c) Any institution under the complete control of a State or a political subdivision thereof may color oleomargarine for use of inmates and employees without incurring liability to the manufacturer's special tax or to stamp tax. In all cases it must be clear that the institution is under the complete control of a State or a political subdivision thereof since institutions under private control are not exempt.

(d) Liability as a manufacturer of oleomargarine and to stamp tax on the quantity of oleomargarine colored will be incurred by—

(1) A dealer in oleomargarine who adds to or mixes with the oleomargarine artificial coloration causing it to look like butter of any shade of yellow, regardless of whether the coloring is done at the request of a customer either before or after sale and with or without profit. (T. D. 1517.)

(2) A person who colors oleomargarine for demonstration purposes and furnishes it for the use and consumption of others, gratuitously or otherwise, at each place where the oleomargarine is colored. If oleomargarine colored for demonstration purposes is not furnished for the use or consumption of others liability as manufacturer is not incurred. There is also no liability incurred on account of a demonstrator giving away samples of artificially colored oleomargarine provided it has been duly taxpaid.