Chapter 840. defining butter, also imposing a tax upon and regulating the manufacture, sale, importation, and exportation of oleomargarine
3,025 words·~14 min read·
/statutes-at-large/vol-24/chapter-840-905964·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
CHAP. 840.— An Act defining butter, also imposing a tax upon and regulating the manufacture, sale, importation, and exportation of oleomargarine.August 2, 1886. *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*,Oleomargarine.Butter, definition of. That for the purposes of this act the word “butter” shall be understood to mean the food product usually known as butter, and which is made exclusively from milk or cream, or both, with or without common salt, and with or without additional coloring matter.
Sec. 2. That for the purposes of this act certain manufactured substances?Oleomargarine, definition of. certain extracts,and certain mixtures and compounds,including such mixtures and compounds with butter, shall be known and designated as “oleomargarine”, namely: All substances heretofore known as oleomargarine, oleo, oleomargarine-oil, butterine, lardine, suine, and neutral; all mixtures and compounds of oleomargarine, oleo, oleomargarine-oil, butterine, lardine, suine, and neutral; all lard extracts and tallow extracts; and all mixtures and compounds of tallow, beef-fiat, suet, lard, lard-oil, vegetable-oil annotto, and other coloring matter, intestinal fat, and offal fat made in imitation or semblance of butter, or when so made, calculated or intended to be sold as butter or for butter.
Sec. 3. That special taxes are imposed as follows:Special taxes.Manufacturers. Manufacturers of oleomargarine shall pay six hundred dollars. Every person who manufactures oleomargarine for sale shall be deemed a manufacturer of oleomargarine. Wholesale dealers in oleomargarine shall pay four hundred and eightyWholesale dealers. dollars. Every person who sells or offers for sale oleomargarine in the original manufacturer’s packages shall be deemed a wholesale dealer in oleomargarine.
But any manufacturer of oleomargarine who has given the required bond and paid the required special tax, and who sells only oleomargarine of his own product ion, at the place of manufacture, in the original packages to which the tax-paid stamps are affixed, shall not be required to pay the special tax of a wholesale dealer in oleomargarine on account of such sales. Retail dealers in oleomargarine shall pay forty-eight dollars. EveryRetail dealers. person who sells oleomargarine in less quantities than ten pounds at one time shall be regarded as a retail dealer in oleomargarine.
And sections thirty-two hundred and thirty-two, thirty-two hundred andR. S., sees. 3232-3241 and 3243, pp. 621, 622, made applicable. thirty-three, thirty-two hundred and thirty-four, thirty-two hundred and thirty five, thirty-two hundred and thirty-six, thirty-two hundred and thirty seven, thirty-two hundred and thirty-eight, thirty-two hundred and thirty-nine, thirty-two hundred and forty, thirty-two hundred and forty-one, and thirty-two hundred and forty-three of the Revised Statutes of the United States are, so far as applicable, made to extend to and include and apply to the special taxes imposed by this section, and to the persons upon whom they are imposed: *Provided*, That in case*Proviso*.Tax for fraction of a year. any manufacturer of oleomargarine commences business subsequent to the thirtieth day of June in any year, the special tax shall be reckoned from the first day of July in that year, and shall be five hundred dollars.
Sec. 4. That every person who carries on the business of a manufacturerPenalty for carrying on business without paying of tax. of oleomargarine without having paid the special tax therefor, as required by law, shall, besides being liable to the payment of the tax, be fined not less than one thousand and not more than five thousand 210 FORTY-NINTH CONGRESS. Sess. I. Ch. 840. 1886. dollars, and every person who carries on the business of a wholesale dealer in oleomargarine without having paid the special tax therefor, as required by law, shall, besides being liable to the payment of the tax, be fined not less than five hundred nor more than two thousand dollars; and every person who carries on the business of a retail dealer in oleomargarine without having paid the special tax therefor, as required by law, shall, besides being liable to the payment of the tax, be fined not less than fifty nor more than five hundred dollars for each and every offense.
Sec. 5. That every manufacturer of oleomargarine shall file with theManufacturers to filo notices, etc., with collector of internal revenue. collector of internal revenue of the district in which his manufactory is located such notices, inventories, and bonds, shall keep such books and render such returns of materials and products, shall put up such signs and affix such number to his factory, and conduct his business under such surveillance of officers and agents as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may, by Bond.regulation, require.
But the bond required of such manufacturer shall be with sureties satisfactory to the collector of internal revenue, and in a penal sum of not less than five thousand dollars; and the sum of said bond may be increased from time to time, and additional sureties required at the discretion of the collector, or under instructions of the Commissioner of Internal Revenue. Sec. 6. That all oleomargarine shall be packed by the manufacturerTo be packed in new wooden packages, and marked, stamped, and branded. thereof in firkins, tubs, or other wooden packages not before used for that purpose, each containing not less than ten pounds, and marked, stamped, and branded as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe; and all sales made by manufacturers of oleomargarine, and wholesale dealers in oleomargarine shall be in original stamped packages.
Retail dealers Retail packages.in oleomargarine must sell only from original stamped packages, in quantities not exceeding ten pounds, and shall pack the oleomargarine sold by them in suitable wooden or paper packages, which shall be marked and branded as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe. Every person who knowingly sells or offers for sale, or delivers or offers to deliver, any oleomargarine in any other form than in new wooden or Penalty for violation.paper packages as above, described, or who packs in any package any oleomargarine in any manner contrary to law, or who falsely brands any package or affixes a stamp on any package denoting a less amount of tax than that required by law, shall be fined for each offense not more than one thousand dollars, and be imprisoned not more than two years.
Sec. 7. That every manufacturer of oleomargarine shall securelyLabel of manufacturer. affix, by pasting, on each package containing oleomargarine manufactured by him, a label on which shall be printed, besides the number of the manufactory and the district and State in which it is situated, these Form.words: “Notice.—The manufacturer of the oleomargarine herein contained has complied with all the requirements of law. Every person is cautioned not to use either this package again or the stamp thereon again, nor to remove the contents of this package without destroying said stamp, under the penalty provided by law in such cases.
” Penalty for failure to affix label.Every manufacturer of oleomargarine who neglects to affix such label to any package containing oleomargarine made by him, or sold or offered for sale by or for him, and every person who removes any such label so affixed from any such package, shall be fined fifty dollars for each package in respect to which such offense is committed. Sec. 8. That upon oleomargarine which shall be manufactured andTax on manufacture. sold, or removed for consumption or use, there shall be assessed and collected a tax of two cents per pound, to be paid by the manufacturer thereof; and any fractional part of a pound in a package shall be taxed as a pound.
The tax levied by this section shall be represented by coupon stamps; and the provisions of existing laws governing the engrav- 211 ing, issue, sale, accountability, effacement, and destruction of stampsStamps.R. S., Title xxv, chap. 6. relating to tobacco and snuff, as far as applicable, are hereby made to apply to stamps provided for by this section. Sec. 9. That whenever any manufacturer of oleomargarine sells, orTax to be assessed on oleomargarine sold without using stamps. removes for sale or consumption, any oleomargarine upon which the tax is required to be paid by stamps, without the use of the proper stamps, it shall be the duty of the Commissioner of Internal Revenue, within a period of not more than two years after such sale or removal, upon satisfactory proof, to estimate the amount of tax which has been omitted to be paid, and to make an assessment therefor and certify the same to the collector.
The tax so assessed shall be in addition to the penalties imposed by law for such sale or removal. Sec. 10. That all oleomargarine imported from foreign countries shall,Additional tax on imported oleomargarine. in addition to any import duty imposed on the same, pay an internal-revenue tax of fifteen cents per pound, such tax to be represented by coupon stamps as in the case of oleomargarine manufactured in the United States. The stamps shall be affixed and canceled by the ownerTo be stamped while in custody of customs officers. or importer of the oleomargarine while it is in the custody of the proper custom house officers; and the oleomargarine shall not pass out of the custody of said officers until the stamps have been so affixed and canceled, but shall be put up in wooden packages, each containing not less than ten pounds, as prescribed in this act for oleomargarine manufactured in the United States, before the stamps are affixed; and the owner or importer of such oleomargarine shall be liable to all the penal Provisions of this act prescribed for manufacturers of oleomargarine manufactured in the United States.
Whenever it is necessary to take any oleomargarine so imported to any place other than the public stores of the United States for the purpose of affixing and canceling such stamps, the collector of customs of the port where such oleomargarine is entered shall designate a bonded warehouse to which it shall Penalty for selling if not stamped.be taken, under the control of such customs officer as such collector may direct; and every officer of customs who permits any such oleomargarineWarehousing. to pass out of his custody or control without compliance by the owner or importer thereof with the provisions of this section relating thereto, shall be guilty of a misdemeanor, and shall be fined not less than one thousand dollars nor more than five thousand dollars, and imprisoned not less than six months nor more than three years.
EveryPenalty for violation by customs officer. person who sells or offers for sale any imported oleomargarine, or oleomargarine purporting or claimed to have been imported, not put up in packages and stamped as provided by this act, shall be fined not less than five hundred dollars nor more than five thousand dollars, and be imprisoned not less than six months nor more than two years. Sec. 11. That every person who knowingly purchases or receives forPenalty for purchasing if not stamped. sale any oleomargarine which has not been branded or stamped according to law shall be liable to a penalty of fifty dollars for each such offense.
Sec. 12. That every person who knowingly purchases or receives forPenalty for purchasing from manufacturer, not having paid special tax. sale any oleomargarine from any manufacturer who has not paid the special tax shall be liable for each offense to a penalty of one hundred dollars, and to a forfeiture of all articles so purchased or received, or of the full value thereof. Sec. 13. That whenever any stamped package containing oleomargarineStamps on emptied packages to be destroyed.Penalty for failure. is emptied, it shall be the duty of the person in whose hands the same is to destroy utterly the stamps thereon; and any person who willfully neglects or refuses so to do shall for each such offense be fined not exceeding fifty dollars, and imprisoned not less than ten days nor more than six months.
And any person who fraudulently gives away or accepts from another, or who sells, buys, or used for packing oleomargarine, any such stamped package, shall for each such offense be fined not exceeding one hundred dollars, and be imprisoned not more than one year. Any revenue officer may destroy any emptied oleomargarine package upon which the tax-paid stamp is found. 212 Sec. 14. That there shall be in the office of the Commissioner of InternalChemist and microscopist to be appointed.
Revenue an analytical chemist and a microscopist, who shall each be appointed by the Secretary of the Treasury, and shall each Salary.receive a salary of two thousand five hundred dollars per annum; and the Commissioner of Internal Revenue may, whenever in his judgment the Additional chemists and microscopists.necessities of the service so require, employ chemists and microscopists, to be paid such compensation as he may deem proper, not exceeding in the aggregate any appropriation made for that purpose.
Commissioner of Internal Revenue to decide articles to lie taxed.Decision final.Decision ns to substances being deleterious.And such Commissioner is authorized to decide what substances, extracts, mixtures, or compounds which may be submitted for his Inspection in contested cases are to be taxed under this act; and his decision in matters of taxation under this act shall be final. The Commissioner may also decide whether any substance made in imitation or semblance of butter, and intended for human consumption, contains ingredients deleterious to the public health; but in case of doubt or contest his Appeal.decisions in this class of cases maybe appealed from to a board hereby constituted for the purpose, and composed of the Surgeon-General of the Army, the Surgeon-General of the Navy, and the Commissioner of Agriculture; and the decisions of this board shall be final in the premises.
Sec. 15. That all packages of oleomargarine subject to tax under thisPackages forfeited if not stamped; or if deleterious. act, that shall be. found without stamps or marks as herein provided, and all oleomargarine intended for human consumption which contains ingredients adjudged, as hereinbefore provided, to be deleterious to the public health, shall be forfeited to the United States. Any person who Penalty for willfully removing, etc., stamps, etc.shall willfully remove or deface the stamps, marks, or brands on package containing oleomargarine taxed as provided herein shall be guilty of a misdemeanor, and shall be punished by a fine of not less than one hundred dollars nor more than two thousand dollars, and by imprisonment for not less than thirty days nor more than six months.
Sec. 16. That oleomargarine may be removed from the place of manufactureExport regulations. for export to a foreign country without payment of tax or affixing stamps thereto, under such regulations and the filing of such bonds and other security as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may prescribe. Every person who shall export oleomargarine shall brand upon every tub, firkin, or other package containing such article the word “oleomargarine”, in plain Roman letters not less than one-half inch square.
Sec. 17. That whenever any person engaged in carrying on the businessPenalty for defrauding by manufacturer. of manufacturing oleomargarine defrauds, or attempts to defraud, the United States of the tax on the oleomargarine produced by him, or any part thereof, he shall forfeit the factory and manufacturing apparatus used by him, and all oleomargarine and all raw material for the production of oleomargarine, found in the factory and on the factory premises, and shall be fined not less than five hundred dollars nor more than five thousand dollars, and be imprisoned not less than six months nor more than three years.
Sec. 18. That if any manufacturer of oleomargarine, any dealer thereinPenalty for failure to comply with regulations, etc. or any importer or exporter thereof shall knowingly or willfully omit, neglect, or refuse to do, or cause to be done, any of the things required by law in the carrying on or conducting of his business, or shall do anything by this act prohibited, if there be no specific penalty or punishment imposed by any other section of this act for the neglecting, omitting, or refusing to do, or for the doing or causing to be done, the thing required or prohibited, he shall pay a penalty of one thousand dollars; and if the person so offending be the manufacturer of. or a wholesale dealer in oleomargarine, all the oleomargarine owned by him, or in which he has any interest as owner, shall be forfeited to the United States.
Sec. 19. That all fines, penalties, and forfeitures imposed by this actRecovery of lines, etc. may be recovered in any court of competent jurisdiction Sec. 20. That the Commissioner of Internal Revenue, with the approvalRegulations. of the Secretary of the Treasury, may make all needful regulations for the carrying into eflect of this act. FORTY-NINTH CONGRESS. Sess. I. Chs. 840-842. 1886. 213 Sec. 21. That this act shall go into effect on the ninetieth day afterTo take offset in 90 days. its passage; and all wooden packages containing ten or more pounds of oleomargarine found on the premises of any dealer on or after the ninetieth day succeeding the date of the passage of this act shall be deemed to be taxable under section eight of this act, and shall be taxed, and shall have affixed thereto the stamps, marks, and brands required by this act or by regulations made pursuant to this act; and for the purposes of securing the affixing of the stamps, marks, and brands required by this act, the oleomargarine shall be regarded as having been manufactured and sold, or removed from the manufactory for consumption or use, on or after the day this act takes effect; and such stock on hand at the time of the taking effect of this act may be stamped, marked, and branded under special regulations of the Commissioner of Internal Revenue, approved by the Secretary of the Treasury; and the Commissioner of Internal Revenue may authorize the bolder of such packages to mark and brand the same and to affix thereto the proper tax-paid stamps.
Approved, August 2, 1886.