The only passage ticket for which stamp tax is required to be paid by this statute is a ticket issued for transportation of the passenger "by any vessel from a port in the United States to a foreign port." When, therefore, to such passenger ticket there is attached another ticket entitling the passenger, after his arrival at the foreign port, to transportation to various points in Europe, or elsewhere, such additional ticket is not subject to stamp tax.

The stamp tax for a passenger ticket may be affixed thereto and can celed at the time and place where it is issued, or it may be affixed and canceled at the pier before the passenger boards the vessel.

Where one passenger ticket is issued, even though it contains several names, but one stamp tax is required to be paid thereon.

166. There is no exemption from the stamp tax on charity tickets issued at low rates.

Telegraphic messages.

167. Telegraphic messages sent by the Associated Press over their own private lines to different newspapers are not required to be stamped.

When one uses a leased Western Union Telegraph wire, for which he pays a stipulated annual rental and has the exclusive use, and for which he employs his own operator, stamp tax is not required to be paid by him on messages sent by him over this wire relating to his own private business.

168. If the sender of a dispatch is a Government or State officer in the discharge of a duty in carrying out governmental functions required by law in operating the machinery of the Government, the dispatch is exempt; but if the act is simply that which the officer does individually in the interest of a private person or outside party to serve such private person or outside party individually, then the dispatch must be stamped.

169. The payment of tax on messages transmitted by a telegraph company, and subsequently received and transmitted by a telephone company, does not exempt the last-named company from the payment of tax on the message so transmitted.

170. A telegraphic dispatch or message is required to be stamped by the person who makes, signs, or issues it.

Telephone companies.

171. Where telephone companies have lines extending into more than one collection district, the return may be made to the collector of that district in which the principal business office of the company is located.

172. Contracts and agreements between subscribers and telephone companies for the placing of a telephone, and payment therefor, are not subject to stamp tax.

Warehouse receipts.

173. Stamps should be affixed to warehouse receipts for goods, merchandise, or property held on storage in public or private warehouses, by the warehousemen.

174. If the actual grower of tobacco, which is an agricultural product, deposits the same in a warehouse in the regular course of trade for sale and takes a warehouse receipt, this receipt is exempt from the stamp tax when it is issued, and it is not required to be stamped at any time after its issuance (if the tobacco which it represents remains in warehouse as it was originally deposited by the grower), although the same may be transferred as a negotiable instrument and presented to the warehouseman by other than the original holder.

175. Where tobacco, or the warehouse receipt therefor, is sold "at any exchange or board of trade, or other similar place," a memorandum of such sale must be made by the seller, and the stamp affixed thereto and canceled.

176. Where a warehouse receipt is sold by a broker at his own office or elsewhere than at a place of exchange, or other place of public sale, the 10-cent stamp must be affixed to the memorandum of this transaction under the paragraph relating to broker's contract.

177. Any receipt or memorandum given by a warehouseman, or any signing by a warehouseman of any express company's book or other receipt evidencing the fact that goods have been placed on storage, is such a receipt, requiring a stamp tax of 25 cents, whether the same is negotiable or nonnegotiable.

178. A warehouse receipt which includes also an insurance against fire should be stamped also as an insurance policy, according to the premium charged.

179. Compress receipts for cotton are not taxable as warehouse receipts if they do not embrace any contract, express or implied, for storage, and for which a storage charge is made as such. The receipt for cotton received for compression, handling, and shipment is exempt from taxation.

180. The exemption from tax on warehouse receipts for agricultural products is restricted to receipts for products of this kind, which are deposited by the actual grower thereof in the regular course of trade for sale. This does not exempt warehouse receipts for such products in case the property deposited has already passed from the ownership of the actual grower.

N. B. SCOTT, Commissioner.

REGULATIONS, CIRCULARS, ETC., UNDER ACT OF

JUNE 13, 1898.

(19481.)

Internal revenue provisions of act of June 13, 1898.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

To collectors of internal revenue:

Washington, D. C., June 14, 1898.

Your attention is called to the act entitled "An act to provide ways and means to meet war expenditures, and for other purposes," which was approved by the President on the 13th instant.

*

This act takes effect on the day next succeeding the day of its passage, that is, on this date, except as otherwise provided for.

You are instructed to read over the law carefully and take prompt action whenever required, giving publicity to its provisions, so that all parties who are affected thereby may be duly informed of their liabilities. The principal additions and changes made in the law previously in force are as follows:

ACT OF JUNE 13, 1898.

Fermented liquors.—An additional tax of $1 per barrel is imposed on fermented liquors, the increased rate to take effect the day succeeding the passage of the act.

Brewers are allowed 7 per cent discount on stamps purchased.

The additional tax on fermented liquors stored in warehouses, already stamped is to be assessed.

Special taxes, on and after July 1, are imposed as follows:

8. Proprietors of shows for money

10.00

9. Proprietors of bowling alleys and billiard rooms, for each alley or table..

5.00

10. Dealers in leaf tobacco, graduated, minimum.

6.00

11. Dealers in tobacco whose sales exceed 50,000 pounds

12.00

The latter tax is not imposed until sixty days after passage of the act, that is, August 12, 1898. All persons engaged in the business on that date are required to make return before the end of August and pay the special tax reckoned from August 1, 1898, to the first day of July following.

Tobacco and snuff.-An additional tax of 6 cents per pound is imposed on tobacco and snuff.

On cigars and cigarettes weighing more than 3 pounds per thousand an additional tax of 60 cents per thousand is imposed.

On cigarettes weighing not more than 3 pounds per thousand an additional tax of 50 cents per thousand is imposed.

A 1-ounce package of smoking tobacco is authorized; and 14, 21, and 3 ounce packages of tobacco and snuff are authorized, in lieu of 2, 3, and 4 ounce packages.

The increased rates take effect on the day next succeeding the passage of the act; that is, June 14, 1898.

Dealers having a stock on hand, in excess of 1,000 pounds of tobacco, or 20,000 cigars or cigarettes, stamps affixed subsequent to April 14, at old rate, must make returns to collectors within thirty days after passage of act for assessment of tax equal to one-half difference between tax already paid at time of removal from factory and new rate. The excess on hand only is to be returned and the tax will be assessed on the excess, which will be paid to collectors after notice. No additional stamps are to be affixed to such stock on hand.

Stamp duties to take effect July 1, 1898.

Schedule A.-Documents and instruments, passage tickets, telegraphic dispatches, insurance policies, etc. Returns to be made

monthly of telephone messages costing 15 cents or more. Schedule B.-Proprietary articles, chewing gums, wines, etc. Stamp tax on seats in parlor or palace cars, and tickets in sleeping

cars.

Gross receipts of persons, firms, companies, and corporations engaged in refining petroleum and sugar, or owning or controlling any pipe line for transporting oil or other products in excess of $250,000. A tax of of one-fourth of 1 per cent annually is imposed, which takes effect the day succeeding passage of the act. Returns are to be made monthly. A tax is imposed on legacies, passing after passage of the act, exceeding $10,000. Rates vary, according to consanguinity, from 75 cents for each $100 to $5 for each $100 in value. Above $25,000 the rates increase. When the value of the property exceeds $1,000,000, rates are multiplied by three. Executors, administrators, and trustees are required to render a list to collectors on a prescribed form.

The provisions of the act relative to mixed flour take effect sixty days after passage of act, or August 12, 1898.

On barrels or other packages not to exceed 196 pounds the tax is 4

cents per barrel, 2 cents per half barrel, 1 cent per quarter barrel, onehalf cent per one-eighth barrel or less.

Further instructions will be given as occasion requires.

N. B. SCOTT, Commissioner.

BONDS OF INTERNAL REVENUE OFFICERS.

(19690.)

Regarding the stamping of bonds given by internal revenue officers.

[Internal Revenue Circular No. 502.]

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 13, 1898. Attention is called to the fact that the "Act to provide ways and means to meet war expenditures, and for other purposes," approved June 13, 1898, provides in Schedule A, as to bonds, as follows:

For indemnifying any person or persons, firm, or corporation who shall have become bound or engaged as surety for the payment of any sum of money, or for the due execution or performance of the duties of any office or position, and to account for money received by virtue thereof, and all other bonds of any description, except such as may be required in legal proceedings, not otherwise provided for in this schedule, fifty cents.

Under the terms of the above provisions all bonds given by officers of internal revenue to the United States for the faithful discharge of duty, as disbursing agents, for indemnifying the Government, or for any other purpose whatsoever, must have attached thereto a 50-cent documentary stamp. This stamp will be affixed by the principal, and canceled by writing or imprinting thereon his initials and the date when affixed.

The said act further requires that where the guaranty is by any fidelity, guaranty, or surety company an additional stamp must also be affixed to the bond at the rate of one-half of 1 cent on each dollar, or fractional part thereof, of the premium charged.

A stamp of the denomination of 10 cents must also be affixed to the bond, by the terms of the act, if it bears a certificate of any descrip tion required by law, not otherwise specified in the act.

This provision is not held to be applicable to the certificate directed by the Commissioner of Internal Revenue to be made by collectors on the back of bonds as to the sufficiency of the sureties, nor, in case of those of gaugers, storekeepers, and storekeeper-gaugers, that neither of the sureties is a distiller, rectifier, or a wholesale liquor dealer.

Collectors of internal revenue will be expected to see that the above requirements as to stamping of bonds are fully observed before the same are transmitted to this office.

N. B. SCOTT, Commissioner.