value of $250,000 (5,000 tons at $50) was recorded in the accounts on its books and records.

The taxpayer reinstalled 4,000 tons of this recovered reusable rail in existing tracks where the replacement was made with the same kind of rail, and recorded such replacement, 4,000 tons at $50, or $200,000 as a charge to expense. With $200,000 credited to expense and then charged to expense, no adjustment is necessary because the amounts of such credits and charges are offset.

The taxpayer installed the remaining 1,000 tons of recovered reusable rail in new tracks and in an existing track where a rail betterment was made to an existing track. Of these 1,000 tons of rail, 800 tons were installed in new tracks, and the assigned value for such rail was capitalized in the rail account at $40,000 (800 tons at $50). With respect to the 200 tons of rail, it was used to replace lighter weight rail in an existing track. This resulted in a betterment of 50 tons of rail and a replacement of 150 tons of rail. This latter 150 tons of rail would be treated as a replacement in kind (150 tons at $50, or $7,500), and like the ($200,000) replacement in kind above, the amounts of such credits and charges are offset. The 50 tons of rail betterment, having an assigned value of $2,500 (50 tons at $50), was capitalized in the rail account. The capitalized costs of $40,000 for new tracks and $2,500 for the betterment were recorded on the books and records of the taxpayer in the rail account.

The taxpayer in 1965 purchased new rail for $130 a ton and received $50 a ton for the disposition of scrap rail. The reusable rail had a fair market value somewhere between the new and scrap price for such rail and by averaging the new and scrap prices, the reusable rail recovered and reused would be valued under this Revenue Procedure at $90 a ton.

The adjustment under this Revenue Procedure would be made for this taxpayer by capitalizing the 850 tons (800 for new tracks and 50 for betterment) of rail at $90 a ton, or $76,500, subtracting the amount capitalized on the books and records of the taxpayer for such rail, $42,500, and crediting taxable income for the taxable year with the $34,000 difference. Correspondingly the $34.000 would be the adjustment to income in 1965 and would be taken into account ratably as deductions over a 20-year period, commencing with the taxable year of the recovery (1965) at $1,700 a

year.

SEC. 5. INQUIRIES.

Inquiries related to this Revenue Procedure should refer to the number thereof and be addressed to the Commissioner of Internal Revenue, Attention: T:I:E, Washington, D.C. 20224.

T.D. 6965

TITLE 26-INTERNAL REVENUE.-CHAPTER I, PART 151.-REGULATORY TAXES ON NARCOTIC DRUGS; PART 152.-REGULATORY TAXES ON

MARIHUANA

CHANGES IN NOMENCLATURE

Pursuant to the authority granted by section 7805 of the Internal Revenue Code of 1954 (26 U.S.C. 7805); sec. 8, 53 Stat. 1293 (49 U.S.C. 788); the transfer

of functions of the Secretary of the Treasury to the Attorney General provided by Reorganization Plan No. 1 of 1968 (Presidential Documents, 33 F.R. 5611— Apr. 11, 1968) [page 907, this Bulletin]; and the designation and delegation of authority provided by Justice Department Order No. 393-68 (33 F.R. 5580Apr. 10, 1968), Title 26 of the Code of Federal Regulations, Chapter I, Parts 151 and 152 are amended as follows:

Parts 151 and 152 of Chapter I of Title 26 of the Code of Federal Regulations are amended by changing "Secretary of the Treasury" to "Attorney General"; "Commissioner of Narcotics" to "Director, Bureau of Narcotics and Dangerous Drugs"; "Commissioner" to "Director"; "narcotic district supervisor” and “district supervisor" to "regional director"; by adding "and the Department of Justice" to "Treasury Department"; and by adding "and Dangerous Drugs" to "Bureau of Narcotics"; each time these words appear in Parts 151 and 152. (Sec. 7805, I.R.C. 1954; 68A Stat. 917; 26 U.S.C. 7805; Reorg. Plan No. 1, 1968, 33 F.R. 5611)

Because the amendments to Parts 151 and 152 are merely for the purpose of publishing the proper titles of the Departments, Bureaus, and positions involved in Reorganization Plan No. 1 of 1968 (Presidential Documents, 33 F.R. 5611— Apr. 11, 1968) it is found that it is unnecessary to publish the amendments with notice and public procedure thereon under 5 U.S.C. 553 (b) or subject to the effective date limitation of 5 U.S.C. 553 (d).

Effective date. These amendments shall become effective upon publication in the Federal Register.

Dated: July 5, 1968. [SEAL]

Associate Director, Bureau of Narcotics and Dangerous Drugs,

HENRY L. GIORDANO,

Department of Justice. JOHN FINLATOR,

Department of Justice.

SHELDON S. COHEN,

Commissioner, Internal Revenue Service,

Department of the Treasury.

Associate Director, Bureau of Narcotics and Dangerous Drugs,

Approved August 19, 1968.

STANLEY S. SURREY,

Assistant Secretary of the Treasury.

(Filed by the Office of the Federal Register on Aug. 27, 1968; 8:47 a.m., and published in the issue of the Federal Register for Aug. 28, 1968, 33 F.R. 12140)

TREASURY DEPARTMENT ORDER NO. 150-45

(Revision No. 1)

Treasury Department Order No. 150-45 [C.B. 1957-1, 717] is hereby amended to read as follows:

The Commissioner of Internal Revenue is hereby authorized to prescribe all needful rules and regulations for the enforcement of the Federal Firearms Act (Title 15 U.S.C., Chapter 18), Chapter 44, Title 18, United States Code, and Title VII of the Omnibus Crime Control and Safe Streets Act of 1968 (Title 18 U.S.C., Appendix), as amended [P.L. 90-351, page 711, this Bulletin], subject to approval by the Secretary or his delegate.

NOVEMBER 22, 1968.

JOSEPH W. BARR, Acting Secretary of the Treasury.

(Filed by the Office of the Federal Register on November 29, 1968; 8:46 a.m., and published in the issue of the Federal Register for November 30, 1968, 33 F.R. 17856)