Every person interested in the manufacture of dis tilled spirits Tax to be a what, and for liable for tax. of, any still, distillery, or distilling apparatus shall be jointly and severally liable for the taxes imposed by law on the distilled spirits produced therefrom, and the tax shall be a first lien on the spirits distilled, the distillery used for distilling the same, the stills, vessels, fixtures, and tools therein, the lot or tract of land whereon the said distillery is situated, and on any building thereon, from the time said spirits are in existence as such until the said tax is paid. first lien, on what time. The portion of Sec. 3251 omitted imposed the tax on distilled spirits, but has been superseded and repealed by Sec. 48, act August 28, 1894, printed below as Sec. 3251 a. The stockholders of a corporation engaged in the business. of distilling are jointly and severally liable for the payment of the tax on the spirits produced by such corporation, within the meaning of Sec. 3251 R. S. United States v. Wolters et al., Circuit Court S. D. Cal., June 8, 1891, Ross, J., 46 Fed. Rep. 509. Constitutionality of law relative to distilleries. Mason v. Rollins, 2 Bissell, 99. Government control over distilleries. United States v. Mason, 6 Bissell, 351. The lien given the United States by Sec. 3251 on the land on which the distillery is situated, for the tax on the spirits produced therein, can only be enforced by a suit in equity, to which the distiller and the owners of the fee, or of incumbrances on it, are made parties. If the collector proceeds to collect by distraint, under Sec. 3187 et seq., taxes assessed against a distiller, and the land on which the distillery is situated is sold under these sections, the distiller having only a leasehold interest therein, the collector's sale in the summary mode prescribed in Sec. 3197 passed, and under the statute could have passed, nothing more than the interest of the delinquent distiller. The waiver or consent of the owner of the fee provided for in Sec. 3262 passes no interest in the land to the distiller. Mansfield v. Excelsior Refinery Co., 135 U. S. 326. Meaning of words "proprietor of still" under Sec. 3251. United States v. Van Slyke, 8 Bissell, 224. Stockholders of a corporation engaged in distilling are jointly and severally liable under the provisions of Sec. 3251 for the taxes imposed upon the spirits manufactured by the corporation. 16 Opinions Atty.-Gen. 10. Municipal corporations engaged in distilling liable to tax. Salt Lake City v. Hollister, collector, 118 U. S. 256. Stockholder in distillery company liable for assessment of tax on spirits. Kissinger v. Bean, 7 Bissell, 60. Lien for tax on spirits. Alkan v. Bean, 8 Bissell, 83. Tax on dis- gallon when below proof. [SEC. 3251 a.] Sec. 48, act August 28, 1894. That on and after the passage of this act there shall be levied and collected on all distilled spirits gallon, or wine in bond at that time, or that have been or that may be then or thereafter produced in the United States, on which the tax is not paid before that day, a tax of one dollar and ten cents on each proof gallon, or wine gallon when below proof, and a Fractional gal- proportionate tax at a like rate on all fractional parts of such proof or wine gallon: Provided, That in computing the tax on any package of spirits all fractional parts of a gallon, less than one tenth, shall be excluded. lons, how taxed. furnished de The Commissioner of Internal Revenue, with the Stamps to be approval of the Secretary of the Treasury, noting tax. shall prescribe and furnish suitable stamps denoting the payment of the internal revenue tax imposed by this section; and until such stamps are prepared and furnished, the stamps now used to denote the payment of the internal revenue tax on distilled spirits shall be affixed to all packages containing dis the tax on frac tilled spirits on which the tax imposed by this section is paid; and the Commissioner of Internal Revenue shall, by assessment or otherwise, cause to be Collection of collected the tax on any fractional gallon tional gallons. contained in each of such packages as ascertained by the original gauge, or regauge when made, before or at the time of removal of such packages from warehouse or other place of storage; and all provisions of existing laws relating to stamps denoting the payment of internal revenue tax on distilled spirits, so far as applicable, are hereby extended to the stamps provided for in this section. All provisions of law relating to tax-paid tilled spirits the stamps stamps for disextended to herein provided for. That the tax herein imposed shall be paid by the distiller of the spirits, on or before their removal from the distillery or place of storage, except in case the removal therefrom without payment of tax is authorized by law; and (upon spirits lawfully deposited in any distillery warehouse, or other bonded warehouse, established under internal revenue laws) within eight years from the date of the original entry for Tax to be paid deposit in any distillery warehouse, or from years. the date of original gauge of fruit-brandy deposited in special bonded warehouse, except in case of withdrawal therefrom without payment of tax as authorized by law. within eight This section made three important changes in the internal revenue law relating to distilled spirits: (1) It increased the tax per gallon from 90 cents to $1.10. The tax per gallon had remained at 90 cents since the act of March 3, 1875. (2) It extended the bonded period from three to eight years. The bonded period had remained fixed at three years since the act of March 28, 1878. (3) It changed the method of taxing fractional parts of a gallon by making the fractions taxable at a proportionate rate, whereas, since the act of June 6, 1872, all fractions of a gallon below one half had been exempt from tax, and fractions of one half or over were taxed as a whole gallon. The sections of the Revised Statutes more especially relating to tax-paid spirit-stamps are as follows: Secs. 3295, 3312, 3313, 3314, 3322, 3324, 3334. See Sec. 59, act August 28, 1894, printed herein as Sec. 3294 k, for penalties and forfeitures for violation of the provisions of this section. Adding sub stances to create fic titious proof; penalty. SEC. 3252. Every person who adds or causes to be added any ingredient or substance to any distilled spirits before the tax is paid thereon, for the purpose of creating a fictitious proof, shall be fined not less than one hundred dollars nor more than one thousand dollars for each cask or package so adulterated, and imprisoned not less than three months nor more than two years; and every such cask or package, with its contents, shall be forfeited to the United States. Tax on spirits out deposit in warehouse. SEC. 3253. The tax upon any distilled spirits, removed from the place where they were disremoved with- tilled and not deposited in bonded warehouse as required by law, shall, at any time, when knowledge of such fact is obtained by the Commissioner of Internal Revenue, be assessed by him upon the distiller of the same, and returned to the collector, who shall immediately demand payment of such tax, and, upon the neglect or refusal of payment by the distiller, shall proceed to collect the same by distraint. But this provision shall not exclude any other remedy or proceeding provided by law. SEC. 3254. All products of distillation, by whatever name known, which contain distilled spirits or alcohol, on which the tax imposed by law has not been paid, shall be considered and Products of distillation containing spirits. taxed as distilled spirits. Brandy made from apples, grapes. SEC. 3255. The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may exempt distillers of brandy her, or made exclusively from apples, peaches, or grapes from any provision of this title relating to the manufacture of spirits, except as to the tax thereon, when in his judgment it may seem expedient to do so. Extracts from Internal Revenue Regulations, Series 7, No. 7, Revised: Under the provisions of Sec. 3255 R. S., the Commissioner of Internal Revenue is authorized, with the approval of the Secretary of the Treasury, to exempt distillers of brandy made exclusively from apples, peaches, or grapes from certain requirements of law relating to the manufacture of spirits; and therefore, by virtue of said authority and with the approval of the Secretary of the Treasury, the commissioner has exempted all distillers of brandy from apples, peaches, or grapes, exclusively, from the following provisions of said law, to wit: From all the provisions of Secs. 3262, 3263, 3267, 3269, 3271, 3273, 3275, 3279, 3284, 3285, 3294, 3302, 3310, 3318 R. S., and from portions of the following named sections, to wit: So much of Sec. 3259 R. S. as requires the distiller to state in his notice the number of mashtubs and fermenting-tubs and the cubic contents of each tub, the number of receiving-cisterns and the cubic contents of each cistern, and the number of hours in which the distiller will ferment each tub of mash or beer. So much of Sec. 3266 R. S. as provides that no person shall use any still, boiler, or other vessel for the purpose of distilling, in any shed, yard, or inclosure connected with any dwelling-house. From all of Secs. 3303, 3305, and 3307 R. S., except so much thereof as provides for the keeping of a book or books in the manner to be prescribed by the Commissioner of Internal Revenue, the preservation of such book or books for the inspection of revenue officers, and the penalties pertaining thereto, and the making of returns: Provided, however, That the manner |