14 



ENCYCLOPEDIA OF PRACTICAL HORTICULTURE 



specially designated or set apart for de- 

 naturing purposes only, and under con- 

 ditions prescribed by the Commissioner 

 of Internal Revenue with the approval of 

 the Secretary of the Treasury. 



The character and quantity of the said 

 denaturing material and the conditions 

 upon which said alcohol may be with- 

 drawn free of tax shall be prescribed by 

 the Commissioner of Internal Revenue, 

 who shall, with the approval of the Sec- 

 retary of the Treasury, make all neces- 

 sary regulations for carrying into effect 

 the provisions of this act. 



Distillers, manufacturers, dealers, and 

 all other persons furnishing, handling, or 

 using alcohol withdrawn from bond under 

 the provisions of this act shall keep such 

 books and records, execute such bonds 

 and render such returns as the Commis- 

 sioner of Internal Revenue, with the ap- 

 proval of the Secretary of the Treasury, 

 may by regulation require. 



Such books and records shall be open 

 at all times to the Inspection of any in- 

 ternal revenue officer or agent. 



Sec. 2. That any person who with- 

 draws alcohol free of tax under the pro- 

 visions of this act and regulations made 

 in pursuance thereof, and who removes 

 or conceals same, or is concerned in re- 

 moving, depositing, or concealing same 

 for the purpose of preventing the same 

 from being denatured under governmental 

 supervision, and any person who uses 

 alcohol withdrawn from bond under the 

 provisions of section one of this act for 

 manufacturing any beverage or liquid 

 medicinal preparation, or knowingly sells 

 any beverage or liquid medicinal prepara- 

 tion made in whole or in part from such 

 alcohol, or knowingly violates any of the 

 provisions of this act, or who shall re- 

 cover or attempt to recover by redistilla- 

 tion or by any other process or means, 

 any alcohol rendered unfit for beverage 

 or liquid medicinal purposes under the 

 provisions of this act, or who knowingly 

 uses, sells, conceals, or otherwise disposes 

 of alcohol so recovered or redistilled, 

 shall on conviction of each offense be 

 fined not more than five thousand dollars, 

 or be imprisoned not more than five 

 years, or both, and shall, in addition, 

 forfeit to the United States all personal 

 propert.v used in connection with his busi- 

 ness, together with the buildings and lots 

 or parcels of ground constituting the 

 premises on which said unlawful acts are 

 performed or permitted to be performed: 

 Provided. That manufacturers employing 

 processes in which alcohol, used free of 

 tax under the provisions of this act, is 

 expressed or evaporated from the articles 

 manufactured, shall be permitted to re- 



cover such alcohol and to have such al- 

 cohol restored to a condition suitable 

 solely for reuse in manufacturing pro- 

 cesses under such regulations as the 

 Commissioner of Internal Revenue, with 

 the approval of the Secretary of the 

 Treasury, shall prescribe. * * * 



It will be seen that this law provided 

 only for denaturing such alcohol as had 

 been made in distilleries subject to the 

 full regulations of the Bureau of Inter- 

 nal Revenue (1) and deposited in the 

 warehouses of such distilleries. Contrary 

 to general expectation, it did nothing to- 

 ward facilitating manufacture on a small 

 scale in such agricultural distilleries as 

 are operated very generally in Europe. 

 However, in the following year an amend- 

 atory act was passed (approved March 2, 

 1907) which was intended in part to rem- 

 edy this defect in the original law. The 

 text of this amendment is as follows: 



Be it enacted by the Senate and House 

 of Representatives of the United States 

 of America in Congress assembled. That 

 notwithstanding anything contained in 

 the act entitled "An act for the with- 

 drawal from bond tax free of domestic 

 alcohol when rendered unfit for beverage 

 or liquid medicinal uses by mixture with 

 suitable denaturing materials," approved 

 June seventh, nineteen hundred and six. 

 domestic alcohol when suitably denatured 

 may be withdrawn from bond without 

 the payment of internal revenue tax and 

 used in the manufacture of ether and 

 chloroform and other definite chemical 

 substances where said alcohol is changed 

 into some other chemical substance and 

 does not appear in the finished product as 

 alcohol: Provided, That rum of not less 

 than one hundred and fifty degrees proof 

 may be withdrawn, for denaturation only, 

 in accordance with the provisions of said 

 act of June seventh, nineteen hundred 

 and six, and in accordance with the pro- 

 visions of this act. 



Sec. 2. That the Commissioner of In- 

 ternal Revenue, with the approval of the 

 Secretary of the Treasury, may authorize 

 the establishment of central denaturing 

 bonded warehouses, other than those at 

 distilleries, to which alcohol of the re- 

 quired proof may be transferred from dis- 

 tilleries or distillery bonded warehouses 

 without the payment of internal revenue 

 tax. and in which such alcohol may be 

 stored and denatured. The establishment, 

 operation, and custody of such warehouses 



(1) Regulations and instructions concerning 

 the tax on distilled spirits. United States In- 

 ternal Revenue. Ko. 7. revised. 



