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using alcohol withdrawn from bond under 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alcohol withdrawn from bond under the 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 
property 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 o1iginal 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, No. 7%, revised. 
