^to^iST'}       Report  or,  Alcohol  Legislation.  115 
payment  of  lax  when  intended  for  use  iu  the  arts."    *  "The  Secretary 
of  the  Treasury  is  required  before  putting  the  law  into  operation  to  formulate 
regulations  for  the  protection  of  the  revenue  against  improper  withdrawals." 
It  must  be  remembered  that  this  act  does  not  contemplate  the  establishment 
of  bonded  warehouses,  and  that  when  such  a  plan  was  proposed  by  a  wholesale 
druggist  coupled  with  the  offer  that  each  manufacturer  should  bear  the  expense 
of  government  inspection,  the  Secretary  of  the  Treasury  stated  at  once  that  a 
statute  positively  forbade  the  government  accepting  any  financial  aid  in  the 
discharge  of  the  treasury  regulations. 
Any  regulation  looking  toward  the  establishment  of  bonded  warehouses  by 
manufacturers  must  be  strenuously  opposed  by  pharmacists,  as  they  would  be 
deprived  of  any  benefit,  and  such  a  provision  "would  monopolize  all  chemical 
and  pharmaceutical  manufacture  to  the  few  who  could  afford  the  expense.  The 
act  does  not  provide  that  alcohol  should  betaken  out  of  bond  and  used  without 
the  payment  of  tax,  but  does  provide  that  only  alcohol  on  which  the  tax  has 
been  paid  can  be  used,  and  that  after  such  alcohol  has  been  used  and  the  can- 
celled stamps  delivered  up,  shall  the  manufacturer  be  entitled  to  receive  from 
the  treasury  of  the  United  States  a  rebate  of  the  tax  paid.  The  alcohol  must 
be  used  and  not  intended  for  use,  as  the  Government  will  not  accept  the 
intent. 
This  is  at  once  a  wise  provision  and  a  most  excellent  safeguard  against  fraud 
on.  the  Treasury.  The  Government  collects  all  the  tax,  and  only  when  the 
"collector  of  the  district  is  satisfied  "  that  the  alcohol  has  been  used  for  legiti- 
mate manufacture  within  the  intent  and  spirit  of  the  act,  shall  the  user  receive 
repayment  of  the  tax. 
It  was  apparent  to  your  committee,  from  the  first,  that  the  great  obstacle  in 
the  way  of  enforcing  this  law  is  the  difficulty  of  framing  regulations  by  the 
Treasury  Department  that  would  be  satisfactory  to  the  various  interests  con- 
cerned, and  that  would  be  effective  in  protecting  the  Government  from  fraud. 
To  this  problem  we  have  given  careful  deliberation.  After  some  progress  had 
been  made  in  the  consideration  of  the  various  ideas  presented  as  a  basis  for 
some  suggestions  as  to  how  this  might  be  accomplished,  your  committee 
learned  that  committees  of  the  Philadelphia  Drug  Exchange,  and  of  the 
National  Wholesale  Druggists'  Association  were  similarly  engaged. 
It  was  suggested  that  the  work  of  these  several  committees  would  be  more 
effective  if  they  could  agree  upon  suggestions  or  a  plan  which  would  be  accept- 
able and  secure  the  support  and  concerted  and  harmonious  action  of  the  various 
interests  represented  by  these  three  bodies.  A  conference  of  representatives 
of  these  committees  was  arranged,  and  it  was  seen  that  a  united  action  was 
perfectly  feasible. 
In  this  conference  and  in  the  subsequent  deliberations  of  the  joint  com- 
mittees, your  committee  have  assumed  the  position  of  representing  the  interests 
of  the  retail  pharmacists,  and  have  insisted  that  the  suggestions  framed  must 
be  such  as  would  permit  this  numerous  class  sharing  in  the  benefits  of  the 
act. 
A  copy  of  the  suggestions  as  now  agreed  upon  is  submitted  herewith  for 
your  consideration.  Should  they  merit  the  approval  of  the  three  bodies  repre 
sented,  copies  will  be  transmitted  to  the  Secretary  of  the  Treasury  and  mem 
