^pfipiffEiiii^liPif^^ UNIVERSITY OF CALIFORNIA LOS ANGELES SCHOOL OF LAW LIBRARY TREASURY DEPARTMENT UNITED STATES INTERNAL REVENUE REGULATIONS No. 35 RELATING TO THE IMPORTATION, MANUFACTURE, PRODUCTION, COMPOUNDING. SALE, DISPENSING, AND GIVING AWAY OF OPIUM OR COCA LEAVES THEIR SALTS, DERIVATIVES, OR PREPARATIONS THEREOF UNDER THE ACT OF DECEMBER 1 7. 191 4. AS AMENDED BY SECTIONS 1006 AND 1007 OF THE REVENUE ACT OF 1918. AND UNDER SECTION 1008 OF THE SAID REVENUE ACT OF 1918 REVISED NOVEMBER. 1919 WASHINGTON GOVERNMENT PRINTING OFFICE 1919 / s ^ TABLE OF CONTENTS. 2s I THE LAW. Page. Act of December 17, 1914, as amended , 9 Sec. 1 to 8, Revenue Act of 1918 17 REGULATIONS. GENERAL. 1. Explanatory . 19 2. Use of terms 19 SPECIAL TAXES. SCOPE OF THE LAW. 3. Purpose of the law 20 4. Persons liable 20 5. The liability 20 KEGISTKATION. 6. Manner of registering 20 7. Time of registration 20 8. Signatures 20 9. Information as to ownership 21 10. Oath — when required 21 11. Evidence of qualification 21 12. Inventory required 21 13. Registry numbers 21 14. Recording and filing 21 15. Dual liabilities 22 16. Government officials 22 NATUBE AND MEASXJEE OF TAX. 17. Nature and manner of payment of taxes 22 18. Measure of tax 22 19. Change of ownership 22 AMOUNTS TO BE PAID. 20. Method of regulations 23 21. Rates of tax 23 22. Several different occupations 23 23. Several businesses of same kind 24 24. Importers 24 25. Manufacturers and compounders 24 26. Producers 25 27. Chemists 25 28. Wholesale dealers 25 29. Retail dealers 25 30. Practitioners 26 31. Branches -— 26 32. Offices -— 26 3 4 CONTENTS. Page. 33. Warehouses 26 34. Partnerships 20 35. Institutions 26 ITINEKANT VENDORS. 36. Itinerant vendors 27 PBINCIPAL AND AGENT. 37. Principals 27 38. Employees 27 39. Nurses 27 40. Traveling salesmen 27 OFFICIALS or FEDERAL, STATE, MUNICIPAL GOVERNMENTS, ETC. 41. Exempt officials 28 42. Evidence of exemption 28 43. Procurement of drugs 28 44. Prescriptions and orders 29 45. Filling orders and prescriptions 29 46. Records 29 47. Caution required 29 48. Stamp tax 29 GOVERNMENT IRSTITtrXIONS. 49. Government institutions 29 50. Railroad companies under Federal Control 30 VIOLATIONS OF LAW. 51. Violations 30 DEFINITION. 52. Definition 30 General Provisions of Law. 53. Provisions applicable 30 DeUnquenci/ in flling returns. 54. When penalty accrues 31 Stamps. 55. Stamps 32 Posting of stamps. 56. Posting of stamps 32 List of taxpayers. 57. List of taxiiayers 33 Changes of oicnersMp. 58. Change of ownership through death 33 CONTENTS. 5 Change of address. Page. 59. Procedure by taxpayer 34 60. Procedure by collector — removal within district 34 61. Procedure by collector — removal to another district 34 62. Failure to report liability 34 63. Certificates in lieu of stamps lost or destroyed 34 STAMP TAX. GENERAL. 64. Scope of law • 35 65. Who is liable 36 66. Measure of tax 36 67. Manner of payment - 36 68. Unit of tax 36 69. Time of payment 36 70. Kinds of stamps 36 71. Procurement of stamps 36 72. Remanufacture 37 73. Repacking 37 74. Exports 37 75. Marking containers 37 EXEMPTIONS. 76. Exempt preparations 37 77. Government officials 37 78. Prescriptions and solutions for practitioners 38 CANCELLATION OF STAMPS. 79. Cancellation of stamps__ 38 FORFEITURE. 80. Forfeiture of unstamped packages 38 MONTHLY REPORTS. IMPORTERS, MANUFACTURERS, ETC. 81. General 38 82. Receipts 39 83. Dispositions 39 84. Summary 40 85. Stamp account 40 WHOLESALE DEALERS. 86. General 41 87. Receipts 41 88. Dispositions 41 89. Summary 42 TRANSFERS, ETC. ISO. Transfers— class 1 42 91. Collectors will examine and forward report 43 92. Transfer of business — class 1 or 2 43 6 CONTENTS. MJSCELLINEOI'S REGULATIONS. Page. 93. Chemists 44 94. Manner ot keeping drugs 44 95. Losses by accident 44 96. Procedure in case of theft 44 97. Court sales 44 98. Unclaimed freight or express packages . 44 99. Ocean vessels ^ 45 ORDER FORMS. PROCUREMENT. 100. Purpose of order forms 47 101. Analytical chemists 47 102. Not required, when . 47 103. By whom procurable 47 104. Manner of procurement and issuance 48 105. Requisitions to be filed- _^ 48 106. Signatures to be compared 48 EXECUTION AND FILING. 107. General 48 108. Signature 49 109. Entering of items — fluid preparations 49 110. Unaccepted orders 49 111. Forms mutilated, lost, or desti'oyed 49 112. Unused forms 50 113. Narcotics lost in transit . 50 114. Miscellaneous 51 RETAILERS AND PRACTITIONERS. Prescriptions, gederal. 115. Who may issue ^ 51 116. Who may fill 51 117. Purpose of issue . 51 Execution of prescriptions. 118. Responsibility 52 119. Manner of execution — practitioners 52 120. Refilling 52 121. Partial filling 52 122. Telephone orders 52 128. Forms to be used 52 124. Filing v 53 125. Labels on containers 53 Dispensing hy practitioners. 126. Dispensing by practitioners 53 Records. 127. Retailers 53 128. Practitioners, hospitals, etc 53 129. Form of record 54 130. Stock solutions 54 CONTENTS. Statements. Page. 131. Collector will require statement whenever he deems it advisable 55 132. Collector will furnish blank form 55 Transpoktation. 133. Transportation 55 Inspections. 134. Records open to inspection 56 135. Procedure by officers 56 136. Samples to be taken 56 137. Unnecessary interference prohibited 57 138. Improper disclosures 57 EXEMPT PREPAEATIONS. 139. Registration 58 140. Tax liability 58 141. Scope of the law 58 142. Exempt preparations — internal 59 143. Exempt preparations — external 59 144. Paregoric 59 145. Prescriptions unnecessary 59 146. Private formulfe 59 147. Order forms : 60 148. Records 60 General Provisions. 149. Compromise 61 150. Redemption of stamps 61 151. Other provisions 61 Unlawful Possession. 152. References — possession 62 Punishment. 153. Rigorous enforcement 62 Seizures. 154. Reports 63 Authority for Regulations. 155. Promulgation of regulations 63 LAW AND REGULATIONS. RELATING TO THE IMPORTATION, MANUFACTURE, PRODUCTION, COM- POUNDING, SALE, DEALING IN, DISPENSING, AND GIV- ING AWAY OF OPIUM OR COCA LEAVES, THEIR SALTS, DERIVATIVES, OR PREPARATIONS THEREOF. THE LAW. (Act of December 17. 1914, as amended by sections 1006 and 1007 of the Revenue Act of 1918. ) Be it eny the Senate and House of Representatives of the United States of Amenca in Congress assembled: Section 1. That on or before July 1 of each year every person who imports, manufactures, produces, compounds, sells, deals in, dis- penses, or gives away opium or coca leaves, or any compound, manu- facture, salt, derivative, or preparation thereof, shall register with the collector of internal revenue of the district his name or style, place of business and place or places where such business is to be carried on, and pay the special taxes hereinafter provided; Every person who on January 1, 1919, is engaged in any of the activities above enumerated, or who between such date and the pas- sage of this Act first engages in any of such activities, shall within 30 days after the passage of this Act make like registration, and shall pay the proportionate part of the tax for the period ending June 30, 1919; and Every person who first engages in any of such activities after the passage of this Act shall immediately make like registration and pay the proportionate part of the tax for the period ending on the fol- lowing June 30th ; Importers, manufacturers, producers, or compounders, $24 per annum; wholesale dealers, $12 per annum; retail dealers, $6 per annum; physicians, dentists, veterinary surgeons, and other prac- titioners lawfully entitled to distribute, dispense, give away, or administer any of tlie aforesaid drugs to patients upon whom they in the course of their professional practice are in attendance, shall pay $3 per annum. 140106°— 19 2 S 10 NARCOTICS. Every person who imports, manufactures, compounds, or other- wise produces for sale or distribution any of the aforesaid drugs shall be deemed to be an importer, manufacturer, or producer. Every person who sells or offers for sale any of said drugs in the original stamped packages, as hereinafter provided, shall be deemed a wholesale dealer. Every person who sells or dispenses from original stamped packages, as hereinafter provided, shall be deemed a retail dealer: Provided^ That the office, or if none, the residence, of any person shall be considered for the purpose of this Act his place of business ; but no employee of any person who has registered and paid special tax as herein required, acting within the scope of his employment, shall be required to register and pay special tax provided by this section : Provided further^ That officials of the United States, Terri- torial, District of Columbia, or insular possessions. State or munici- pal governments, who m the exercise of their official duties engage in any of the business herein described, shall not be required to register, nor pay special tax, nor stamp the aforesaid drugs as hereinafter pre- scribed, but their right to this exemption shall be evidenced in such manner as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may by regulations j)rescribe. It shall be unlawful for any person required to register under the provisions of this Act to import, manufacture, produce, compound, sell, deal in, dispense, distribute, administer, or give away any of the aforesaid drugs without having registered and paid the special tax as imposed by this section. That the word " person " as used in this Act shall be construed to mean and include a partnership, association, company, or corpora- tion, as well as a natural person ; and all provisions of existing law relating to special taxes, as far as necessary, are hereby extended and made applicable to this section. That there shall be levied, assessed, collected, and paid upon opium, coca leaves, any compoimcl, salt, derivative, or preparation thereof, produced in or imported into the United States, and sold, or removed for consumption or sale, an internal -revenue tax at the rate of 1 cent per ounce, and any fraction of an ounce in a package shall be taxed as an ounce, such tax to be paid by the importer, manufacturer, producer, or compounder thereof, and to be repre- sented by appropriate stamps, to be provided by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury; and the stamps herein provided shall be so affixed to the bottle or other container as to securely seal the stopper, covering, or wrapper thereof. The tax imposed by this section shall be in addition to any import duty imposed on the aforesaid drugs. NARGOTICS. 11 It shall be unlawful for any person to purchase, sell, dispense, or distribute any of the aforesaid drugs except in the original stamped package or from the original stamped package; and the absence of appropriate tax-paid stamps from any of the aforesaid drugs shall be prima facie evidence of a violation of this section by the person in whose possession same may be found; and the possession of any original stamped package containing any of the aforesaid drugs by any person who has not registered and paid special taxes as required by this section shall be prima facie evidence of liability to such spe- cial tax : Provided^ That the provisions of this paragi-aph shall not apply to any person having in his or her possession any of the afore- said drugs which have been obtained from a registered dealer in pur- suance of a prescription, written for legitimate medical uses, issued by a physician, dentist, veterinary surgeon, or other practitioner registered under this Act; and where the bottle or other container in which such drug may be put up by the dealer upon said prescription bears the name and registry number of the druggist, serial number of prescription, name and address of the patient, and name, address, and registry number of the person writing said prescription; or to the dispensing, or administration, or giving away of any of the afore- said drugs to a patient by a registered physician, dentist, veterinary surgeon, or other practitioner in the course of his professional prac- tice, and where said drugs are dispensed or administered to the patient for legitimate medical purposes, and the record kept as re- quired by this Act of the drugs so dispensed, administered, dis- tributed, or given away. And all the provisions of existing laws relating to the engraving, issuance, sale, accountability, cancellation, and destruction of tax- paid stamps provided for in the internal-revenue laws are, in so far as necessary, hereby extended and made to apply to stamps provided by this section. That all unstamped packages of the aforesaid drugs found in the possession of any person, except as herein provided, shall be subject to seizure and forfeiture, and all the provisions of existing internal revenue laws relating to searches, seizures, and forfeitures of un- stamped articles are hereby extended to and made to apply to the articles taxed under this Act and the persons upon whom these taxes are imposed. Importers, manufacturers, and wholesale dealers shall keep such books and records and render such monthly returns in relation to the transactions in the aforesaid drugs as the Commissioner of In- ternal Revenue, with the approval of the Secretary of the Treasury, may by regulations require. The Commissioner of Internal Revenue, with the approval of the Secretar}^ of the Treasury, shall make all needful rules and regu- lations for carrying the provisions of this Act into effect. 12 KARCOTICS. Sec. 2. That it shall be unUnvl'iil for any person to sell, barter, ex- change, or give away any of the aforesaid drugs except in pursuance of a "written order of the person to whom such article is sold, bartered, exchanged, or given, on a form to be issued in blank for that pur- pose by the Commissioner of Internal Eevenue. Every person who shall accept any such order, and in pursuance thereof shall sell, bar- ter, exchange, or give away any of the aforesaid drugs, shall preserve such order for a period of two years in such a way as to be readily accessible to inspection by any officer, agent, or employee of the Treasury Department duly authorized for that purpose, and the State, Territorial, District, municipal, and insular officials named in section 5 of this Act. Every person who shall give an order as herein provided to any other person for any of the aforesaid drugs shall, at or before the time of giving such order, make or cause to be made a duplicate thereof on a form to be issued in blank for that purpose by the Commissioner of Internal Revenue, and in case of the acceptance of such order, shall preserve such duplicate for said period of two years in such a way as to be readily accessible to in- spection by the officers, agents, employees, and officials hereinbefore mentioned. Nothing contained in this section shall apply — (a) To the dispensing or distribution of any of the aforesaid drugs to a patient by a physician, dentist, or veterinary surgeon reg- istered under this Act in the course of his professional practice only : Provided, That such physician, dentist, or veterinary surgeon shall keep a record of all such drugs dispensed or distributed, showing the amount dispensed or distributed, the date, and the name and address of the patient to whom such drugs are dispensed or distributed, ex- cept such as may be dispensed or distributed to a patient upon whom such physician, dentist or veterinary surgeon shall personally at- tend ; and such record shall be kept for a period of two years from the date of dispensing or distributing such drugs, subject to inspec- tion, as provided in this Act. (b) To the sale, dispensing, or distribution of any of the aforesaid drugs by a dealer to a consumer under and in pursuance of a written prescription issued by a physician, dentist, or veterinary surgeon registered under this Act: Provided, however, That such prescrip- tion shall be dated as of the day on which signed and shall be signed by the physician, dentist, or veterinary surgeon who shall have issued the same : And provided further, That such dealer shall pre- serve such prescription for a period of two years from the day on which such prescription is filled in such a way as to be readily ac- cessible to inspection by the officers, agents, employees, and officials hereinbefore mentioned. (c) To the sale, exportation, shipment or delivery of any of the aforesaid drugs by any person within the United States or any Ter- NARCOTICS. 13 ritory or the District of Columbia or any of the insular possessions of the United States to any pereon in any foreign country, regulat- ing their entry in accordance with such regulations for importation thereof into such foreign country as are prescribed by said country, such regulations to be promulgated from time to time by the Secre- tary of State of the United States. (d) To the sale, barter, exchange, or giving a«^vay of any of the aforesaid drugs to any officer of the United States Government or of any State, territorial, district, county, or municipal or insular gov- ernment lawfully engaged in making purchases thereof for the vari- ous departments of the Army and Navy, the Public Health Service, and for Government, State, territorial district, county, or municipal or insular hospitals or prisons. The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall cause suitable forms to be prepared for the purposes above mentioned, and shall cause the same to be distributed to collectors of internal revenue for sale by them to those persons who shall have registered and paid the special tax as re- quired by section one of this Act in their districts, respectively ; and no collector shall sell any of such forms to any persons other than a person who has registered and paid the special tax as required by section one of this Act in his district. The price at which such forms shall be sold by said collectors shall be fixed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, but shall not exceed the sum of $1 per hundred. Every collector shall keep an account of the number of such forms sold by him, the names of the purchasers, and the number of such forms sold to each of such purchasers. Whenever any collector shall sell any of such forms, he shall cause the name of the purchaser thereof to be plainly written or stamped thereon before delivering the same ; and no person other than such purchaser shall use any of said forms bearing the name of such purchaser for the purpose of procuring any of the aforesaid drugs, or furnish any of the forms bearing the name of such pur- chaser to any person with intent thereby to procure the shipment or delivery of any of the aforesaid drugs. It shall be unlawful for any person to obtain by means of said order forms any of the aforesaid drugs for any purpose other than the use, sale, or distribution thereof by him in the conduct of a lawful business in said drugs or in the legitimate practice of his profession. The provisions of this Act shall apply to the United States, the District of Columbia, the Territory of Alaska, the Territory of Ha- waii, the insular possessions of the United States, and the Canal Zone. In Porto Rico and the Philippine Islands the administration of this Act, the collection of the said special tax, and the issuance of the order forms specified in section two shall be performed by the 14 NARCOTICS. appropriate internal-revpnue officers of those governments, and all revenues collected hereunder in Porto Rico and the Philippine Is- lands shall accrue intact to the general governments thereof, respec- tively. The courts of first instance in the Philippine Islands shall possess and exercise jurisdiction in all cases arising under this Act in said islands. The President is authorized and directed to issue such Executive orders as will carry into effect in the Canal Zone the intent and purpose of this Act by providing for the registration and the imposition of a special tax upon all persons in the Canal Zone who produce, import, compound, deal in, dispense, sell, dis- tribute, or give away opium or coca leaves, their salts, derivatives, or preparations. Sec. 3. That any person who shall be registered in any internal revenue district under the provisions ox section one of this Act, shall whenever required so to do by the collector of the district, render to the said collector a true and correct statement or return, verified by affidavit, setting forth the quantity of the aforesaid drugs re- ceived by him in said internal-revenue district during such period immediately preceding the demand of the collector, not exceeding three months, as the said collector may fix and determine ; the names of the persons from whom the said drugs were received ; the quantity in each instance received from each of such persons, and the date when received. Sec. 4, That it shall be unlawful for any person who shall not have registered and paid the special tax as required by section one of this Act to send, ship, carry, or deliver any of the aforesaid drugs from any State or Territory or the District of Columbia, or any in- sular possession of the United States, to any person in any other State or Territory or the District of Columbia or any insular pos- session of the United States: Provided., That nothing contained in this section shaii apply to common carriers engaged in transporting the aforesaid drugs, or to any employee acting within the scope of his employment, of any person who shall have registered and paid the special tax as required by section one of this Act, or to any per- son who shall deliver any such drug which has been prescribed or dispensed by a physician, dentist, or veterinarian required to regis- ter under the terms of this Act, who has been employed to prescribe for the particular patient receiving such drug, or to any United States, State, county, municipal. District, Territorial, or insular of- ficer or official acting within the scope of his official duties. Sec. 5. That the duplicate order forms and the prescriptions re- quired to be preserved under the provisions of section two of this Act, and the statements or returns filed in the office of the collector of the district, under the provisions of section three of this Act. shall be NAECOTICS. 15 open to inspection by officers, agents, and employees of the Treasury Department duly authorized for that purpose; and such officials of any State or Territory, or of any organized municipality therein, or of the District of Columbia, or any insular possession of the United States, as shall be charged with the enforcement of any law or munic- ipal ordinance regulating the sale, prescribing, dispensing, dealing in, or distribution of the aforesaid drugs. Each collector of internal revenue is hereby authorized to furnish, upon written request, certi- fied copies of any of the said statements or returns filed in his office to any of such officials of any State or Territory or organized municipal- it}^ therein, or the District of Columbia, or any insular possession of the United States, as shall be entitled to inspect the said statements or returns filed in the office of the said collector, upon the payment of a fee of $1 for each one hundred words or fi'action thereof in the copy or copies so requested. Any person who shall disclose the infor- mation contained in the said statements or returns or in the said duplicate order forms, except as herein expressly provided, and ex- cept for the purpose of enforcing the provisions of this Act, or for the purpose of enforcing any law of any State or Territory or the District of Columbia, or any insular possession of the United States, or ordinance of any organized municipality therein, regulating the sale, prescribing, dispensing, dealing in, or distribution of the afore- said drugs, shall, on conviction, be fined or imprisoned as provided by section nine of this Act. And collectors of internal revenue are hereby authorized to furnish upon written request, to any person, a certified copy of the names of any or all persons who may be listed in their respective collection districts as special taxpayers under the provisions of this Act, upon pajaiient of a fee of $1 for each one hundred names or fraction thereof in the copy so requested. Sec. 6. That the provisions of this Act shall not be construed to apply to the manufacture, sale, distribution, giving away, dispens- ing, or possession of preparations and remedies which do not con- tain more than two grains of opium, or more than one-fourth of a grain of morphine, or more than one-eighth of a grain of heroin, or more than one grain of codeine, or any salt, or derivative of any of them in one fluid ounce, or, if a solid or semisolid preparation, in one avoirdupois ounce ; or to liniments, ointments, or other prepara- tions which are prepared for external use, only, except liniments, ointments, and other preparations which contain cocaine or any of its salts or alpha or beta eucaine or any of their salts or any synthetic substitute for them : Provided^ That such remedies and preparations are manufactured, sold, distributed, given away, dispensed, or pos- sessed as medicines and not for the purpose of evading the intentions and provisions of this Act : Provided further^ That any manufacturer, 16 NARCOTICS. l)roducer. compounder, or vendor (including dispensing physicians) of the preparations and remedies mentioned in this section shall keep a record of all sales, exchanges, or gifts of such preparations and remedies in such manner as the Commissioner of Internal Reve- nue, with the approval of the Secretary of the Treasury, shall direct. Such record shall be preserved for a period of two years in such a way as to be readily accessible to inspection by any officer, agent or employee of the Treasury Department duly authorized for that pur- pose, and the State, Territorial, District, municipal, and insular offi- cers named in section 5 of this Act, and every such person so possess- ing or disposing of such preparations and remedies shall register as required in section 1 of this Act and, if he is not paying a tax under this Act, he shall pay a special tax of $1 for each year, or fractional part thereof, in which he is engaged in such occupation, to the col- lector of internal revenue of the district in which he carries on such occupation as provided in this Act. The provisions of this Act as amended shall not apply to decocainized coca leaves or preparations made therefrom, or to other preparations of coca leaves which do not contain cocaine. Sec. T. That all laws relating to the assessment, collection, re- mission, and refund of internal-revenue taxes including section thirty-two hundred and twenty-nine of the Revised Statutes of the United States, so far as applicable to and not inconsistent with the provisions of this Act, are hereby extended and made applicable to the special taxes imposed by this Act. Sec. 8. That it shall be unlawful for any person not registered under the provisions of this Act, and who has not paid the special tax provided for by this Act, to have in his possession or under his control any of the aforesaid drugs; and such possession or control shall be presumptive evidence of a violation of this section, and also of a violation of the provisions of section one of this Act : Provided^ That this section shall not apply to any employee of a registered per- son, or to a nurse under the supervision of a physician, dentist, or veterinary surgeon registered under this Act, having such possession or control by virtue of his emploj'ment or occupation and not on his own account; or to the possession of any of the aforesaid drugs which has or have been prescribed in good faith by a physician, dentist, or veterinary surgeon registered under this Act; or to any United States, State, county, municipal. District, Territorial, or in- sular officer or official who has possession of any said drugs, by rea- son of his official duties, or to a warehouseman holding possession for a person registered and who has paid the taxes under this Act; or to common carriers engaged in transporting such drugs : Provided further^ That it shall not be necessary to negative any of the afore- NAECOTICS. 1 7 said exemptions in any comx^laint, information, indictment, or other writ or proceeding laid or brought under this Act ; and the burden of proof of any such exemption shall be upon the defendant. Seo. 9. That any person who violates or fails to comply with any of the requirements of this Act shall, on conviction, be fined not more than $2,000 or be imprisoned not more than five years, or both, in the discretion of the court. Sec. 10. That the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, is authorized to appoint such agents, deputy collectors, inspectors, chemists, assistant chem- ists, clerks, and messengers in the field and in the Bureau of Internal Revenue in the District of Columbia as may be necessary to enforce the provisions of this Act. Sec. 11. That the sum of $150,000, or so much thereof as may be necessary, be, and hereby is, appropriated, out of any moneys in the Treasury not otherwise appropriated, for the purpose of carrying into effect the provisions of this Act. Sec. 12. That nothing contained in this Act shall be construed to impair, alter, amend, or repeal any of the provisions of the Act of Congress approved June thirtieth, nineteen hundred and six, entitled " An Act for preventing the manufacture, sale, or transportation of adulterated or misbranded, or poisonous, or deleterious foods, drugs, medicines, and liquors, and for regulating traffic therein, and for other purposes," and any amendment thereof, or of the Act approved February ninth, nmeteen hundred and nine, entitled " An Act to prohibit the importation and use of ox3iuni for other than medicinal purposes," and any amendment thereof. (Section 1008 of tlie Revenue Act of 191S, approved February 24, 1919.) " That all opium, its salts, derivatives, and compounds, and coca leaves, salts, derivatives, and compounds thereof, which may now be under seizure or which may hereafter be seized by the United States Govermnent from any person or persons charged with any violation of the Act of October 1, 1890, as amended by the Acts of March 3, 1897, February 9, 1909, and January 17, 1914, or the Act of December 17, 1914, shall upon conviction of the person or persons from whom seized be confiscated by and forfeited to the United States, and the Secretary is hereby authorized to deliver for medical or scientific pur- poses to any department, bureau, or other agency of the United States Government, upon proper ap})licati()n therefor under such regulation as may be prescribed by the Commissioner, with the approval of the Secretary, any of the drugs so seized, confiscated, and forfeited to the United States. 140106°— 19 3 18 NARCOTICS. "The provisions of this section shall also apply to any of the aforesaid drugs seized or coming into the possassion of the United States in the enforcement of any of the above-mentioned acts, where the owner or owners thereof are unknown. None of the aforesaid drugs coming into possession of the United States under the opera- tion of said acts, or the provisions of this section, shall be destroyed without certification by a committee appointed by the Commissioner, with the aj^proval of the Secretary, that they are of no value for medical or scientific purposes." REGULATIONS. . GENERAL. Article 1. Explanatory. — These regulations have been prepared in accordance with the plan adopted in preparing other regulations, recently emanating from the Bureau of Internal Revenue, of placing the various articles in juxtaposition with the provisions of law to which they most nearly relate. The act of December 17, 1914, as amended, and section 1008 of the act of February 24, 1919, are printed in their entirety on pages 9 to 18. The passages printed in small type hereafter are quoted either from the act of December 17, 1914, as amended, or from other per- tinent statutes. All passages not otherwise indicated are from the act of December 17, 1914. Art. 2. "Use of terms — Person. — ^The word "person" occurring in these regulations is used to include partnerships, associations, com- panies, and corporations ; also hospitals, colleges of pharmacy, dental clinics, sanatoriums and any other institutions or entities doing any of the things or subjected to any liability of wiiich cognizance is taken therein. (See arts. 35 and 52.) Special tax. — ^The term " special tax " is used to include any of the occupational taxes imposed upon persons manufacturing, dealing, etc., in narcotics. Stami) tax. — The term " stamp tax " is used to describe the tax on narcotic drugs payable by attachment of stamp. (See arts. 64 to 80.) SPECIAL TAXES. Section 1. That on or before July 1 of each year every person who imports, manufactures, produces, compounds, sells, deals in, dis- penses, or gives away opium or coca leaves, or any compound, manu- facture, salt, derivative, or preparation thereof, shall register with the collector of internal revenue of the district his name or style, place of business and place or places where such business is to be carried on, and pay the special taxes hereinafter provided; Every person who on January 1, 1919, is engaged in any of the activities above enumerated, or who between such date and the pas- sage of this act first engages in any of such activities, shall within 30 days after the passage of this act make like registration, and shall pay the proportionate part of the tax for the period ending June 30, 1919; and Every person who first engages in any of such activities after the passage of this act shall immediately make like registration and p:iy the proportionate part of the tax for the period ending on the fol- lowing June 30th. 19 20 NARCOTICS. SCOPE OF THE LAW. Art. 3. Purpose of the law, — The law is a revenue measure but also serves the purpose of controlling and restricting the traffic in narcotic drugs. Art. 4. Persons liable. — Liability attaches to every person who im- ports, m.anufactures, produces, compounds, sells, deals in, dispenses, or gives away opium or coca leaves, or any compound, manufacture, salt, derivative or preparation thereof. For detailed information with respect to the various classes of per- sons who are within the scope of the law, see articles 20 to 51. Art. 5. The liability. — Every person within the scope of the law (see art. 4) and whose dealings in narcotic drugs are not in viola- tion of any law. State or Federal, is required to register and pa}'^ one or more of the several special taxes imposed. As to evidence of quali- fication under the local law, see article 11. As to manner of paying the tax, see article 6. Persons who can not lawfully deal in narcotic drugs, including consumers as such, are not permitted to register. Persons who deal in narcotics without registration are liable to be fined not more than $2,000, or imprisoned for not more than five years, or both. (See art. 153). REGISTRATION. Art. 6. Manner of registering. — Every person required to register (see arts. 4 and 5) must execute a return or application for regis- tration (hereinafter referred to as "return" or "application") on Form 678, obtainable from, the collector of the district in which the taxpayer does business or practices his profession. The form, when executed, should be transmitted to the collector, accompanied by a remittance of the amount of the tax. For list of collection districts with addresses of collectors' offices, see pages 65 to 67. Art. 7. Time of registration. — Each person required to register (see arts. 4 and 5) must make return on or before July 1 of each year. Those who commence business after July 1 are required to make re- turn immediately, covering the unexpired portion of the tax year end- ing June 30 following (see art. 18), and on or before July 1 annually thereafter. With respect to' liability on account of failure to file return on time, see article 51. Art. 8. Signatures — Individuals. — ^The application must be signed by the person desiring registration. Firms and cm'porations. — The application of a firm must be signed by a member, that of a corporation, by an officer duly authorized to so act. Institutions. — When an institution is subject to tax (see art, 35) the head thereof or of the department Avherein narcotic drugs are used shall sign the application for registration. NARCOTICS. 21 Art. 9. Information as to ownership. — The names of the real owners must be disclosed if a business is being carried on under a fictitious name or that of a former owner, etc. If owned by a partnership the name of each partner must appear. In the case of a corporation the names of the principal officers must be shown. Art. 10. Oath — When required. — If the amount of tax covered by the return is more than $10 it must be under oath. If the tax is not in excess of $10 the application may be signed or acknowledged before two witnesses in lieu of an oath. The witnesses must them- selves sign the application in their capacity as such. (See sec. 1309, Revenue Act of 1918.) Art. 11. Evidence of qualification. — ^The return must be supported by an affidavit showing the applicant to be legally qualified or per- mitted, under the laws of the jurisdiction in which he is engaged, or proposes to engage, in any business or occupation within the scope of these regulations, to engage in such business or occupation. Un- less the evidence of qualification is satisfactory, the application will be rejected. Anj^ person rendering a false affidavit will be liable imder the provisions of section 3451, Eevised Statutes, to be im- prisoned not less than one nor more than five years. Art. 12. Inventory required. — Every person, firm, or corporation making application for registry, or reregistry in any class (see art. 21) must, at the time of applying for such registry or reregistry, pre- psLve, under oath or affirmation, in duplicate, an inventory of all narcotic drugs and preparations coming within the scope of the law, excluding exempt preparations (see arts. 139 to 148), on hand on the date of the application. The inventories must be prepared on Form 713, copies of which may be obtained from, collectors upon request. The original inventory must be kept on file by the maker, and the duplicate forwarded to the collector. Collectors will refuse to regis- ter any applicant who fails to furnish a copy of the inventory as required. Art. 13. Registry numbers. — Upon approval of the application the collector will assign a registry number to the applicant. The num- bers are issued serially without regard to classes (see art. 21). The number as assigned is retained by the applicant so long as applica- tions continue to be made on or before July 1 of each year and ap- proved. Registry numbers will be reassigned to other persons when applications are no longer made and approved. Art. 14. Recording- and filing. — Each approved application (see art. 6) will be recorded by the collector on card Record 10, and the cards filed alphabetically (see art. 57). The applications will be filed numerically according to registry numbers, all those of the same number (see art. 15) being filed together. 22 NAECOTICS. Art. 15. Dual liabilities. — One who belongs to more than one tax- able class (see art. 21) must make return with respect to each. Ordi- narily, only one registry number will be assigned, but one who has qualified as a member of class 4 must be assigned a separate number with respect to that class only, even though he is also registered as a member of class 1, 2, or 3. However, when one has registered as a member of classes 4 and 5 only, he will operate as a member of class 5 under the number assigned to him as a member of class 4. If one is engaged in business or carries on an occupation as a mem- ber of one class only, but at two or more different addresses, he must make return, and a separate number will be assigned, with respect to each place separately. As to tax liability, see articles 22 and 23. Art. 16. Government officials. — Government officials who handle narcotic drugs and preparations are under certain conditions exempt from registration. (See art. 41.) NATURE AND MEASURE OF TAX. Art. 17. Nature and manner of payment of taxes. — ^The occupational taxes are annual in character and are due and payable on or before July 1 of each year, the tax year ending June 30 of the following calendar year. With respect to amounts, see article 21. With re- spect to liabilities of persons doing business for part of the year, see article 18. With respect to the manner of payment of taxes, see arti- cle 6. Art. 18. Measure of tax. — ^Wlien business is done during the month of July, tax must be paid for the full year and no part thereof may be refunded regardless of whether or not the taxpayer intends to remain or does remain in business for a year. If business is com- menced after the month of July, the amount due is to be reckoned proportionately from the j6rst day of the month in which business is begun to July 1 following (sec. 3237, R. S.). But see below as to dealers in exempt preparations. Dealers in exempt frefajrations. — With respect to liability of manu- facturers of and dealers in exempt preparations, see article 140. Art. 19. Change of ownership. — When a business or practice changes hands the person succeeding thereto is liable to tax as indicated in article 18 for the period or periods during which he conducts the business or practice, irrespective of any taxes paid by his predecessor. The predecessor is not entitled to refund of any tax paid by him on account of the transfer of ownership. (Sec. 3241, R. S.) With respect to changes of ownership through death, see article 58. NARCOTICS. 23 AMOUNTS TO BE PAID. [Section 1. — Contiuued.] Importers, manufacturers, producers or compounders, $24 per annum ; wholesale dealers, $12 per annum ; retail dealers, $6 per annum ; pliy- sicians, dentists, veterinary surgeons, and otlier practitioners lawfully entitled to distribute, dispense, give away, or administer any of the aforesaid drugs to patients upon whom they in the course of their pro- fessional practice are in attendance, shall pay $3 per annum. Every person who imports, manufactures, compounds, or other- wise pi-oduces for sale or distribution any of the aforesaid drugs shall be deemed to be an importer, manufacturer, or producer. Every person who sells or offers for sale any of said drugs in the original stamped packages, as hereinafter provided, shall be deemed a wholesale dealer. Every person who sells or dispenses from original stamped packages, as hereinafter provided, shall be deemed a retail dealer. Art. 20. Method of regulations. — In arranging the matter under the heading, " Amounts to be paid," the classifications indicated by the statute have been followed. Thus, for instance, the possibility of liability of a retail druggist to tax as a wholesale dealer or as a manufacturer is discussed in the articles dealing with "Wholesale dealers " and " Manufacturers," respectively, not in the article deal- ing with " Retail dealers." The latter article deals only with ques- tions of liability to tax as a retail dealer. However, certain rules which are common to several classes of taxpayers have been added under separate heads. (See arts. 22 and 23, and 34 to 38.) Art. 21. Eates of tax. — Persons subject to tax are divided into classes as shown by the table below : For definitions, exceptions, ex- planations, etc., see articles 22 to 43. With respect to manufacturers of and dealers in exempt preparations, see articles 139 to 148. Annual tax. I $24 II 12 III 6 IV 3 v 1 Persons liable. Importers Manufacturers Producers Compounders Chemists Wholesale dealers Retail dealers Physicians, dentists, veterinary surgeons, and other practitioners Manufacturers of and dealers in exempt prepai'ations Dealt with par- ticularly in articles. 24 25 26 25 27 28 29 30 140 Art. 22. Several different occupations. — As a general rule, one en- gaged in several different businesses or occupations at one or sev- eral different locations is liable to a separate tax with respect to each occupation or business (sees. 3235 and 3236, R. S.). Exceptions to the general rule are indicated by succeeding articles. With respect to registration, see article 15. 24 NARCOTICS. Art. 23. Several businesses of same kind. — One conducting two or more businesses of the same kind or engaged in the same occupation at two or more different phices must pay a separate tax with respect to each place (sees. 3235 and 323G, li. S.). With respect to registra- tion, see article 16. Art. 24, Importers. — Every person who imports coca leaves or nar- cotic drugs or derivatives or preparations thereof is subject to tax as an importer. Importers who sell or otherwise transfer title to imported narcotic drugs while in customs custody without securing physical possession thereof are nevertheless subject to tax. An im- porter who is also a manufacturer is not thereby required to pay more than one tax. Art. 25. Manufacturers and compounders. — As a general rule, every person who, by compounding, mixing, or other process of manu- facture, produces narcotic drugs or preparations for sale is subject to tax as a manufacturer or compounder. There are, however, a number of exceptions. Retail dealers. — Persons who haA'^e paid tax as retail dealers do not incur liability as manufacturers or compounders on account of compounding narcotic preparations to fill legitimate prescriptions previously received. As to the requirements with respect to pre- scriptions, see articles 115 to 125. Neither will additional tax liability be asserted against such per- sons on account of the preparation of solutions in advance of re- ceipt of prescriptions so long as they are used for prescription pur- poses only. As to labeling of packages containing preparations compounded to fill prescriptions, see article 125. Persons qualified only as retail dealers may also supply prac- titioners on order forms (see arts. 100 to 114) with aqueous solu- tions to be used in legitimate office practice in a quantity not ex- ceeding one ounce at any one time. Each package containing an aqueous solution so furnished must bear a label showing the date and number of order form, the name, address, and registry number of the person furnishing the order, and the name, address, and registry number of the dealer filling the order. As to exemption from stamp tax, see article 78. M armfacturers of exerrupt preparations. — Persons who manufac- ture for external use only or produce preparations which contain only the small percentage of narcotic drugs specified in articles 141 to 143 are not required to pay the tax of $24 per annum. Importers. — ^^\^ith respect to importers who are also manufactur- ers, see article 24. NARCOTICS. 25 Additio7iaI licibiUties of mcmufacturers. — With respect to liabili- ties of manufacturers as wholesale and retail dealers, see articles 28 and 29. Branches^ offices^ and warehouses. — ^T\^ith respect to branches, offices, and warehouses, see articles 31 to 33. Art. 26. Producers. — A person who produces packages containing narcotic drugs or preparations to be sold on order forms not by mixing or compounding but by merely transferring the contents of one package or of a number of packages to one or more packages of the same or of greater or smaller size, is liable to tax as a producer. As to liability to stamp tax, see article 73. As to additional liability as wholesale or retail dealer, see articles 28 and 29. As to producers of exempt preparations, see article 140, Art. 27. Chemists. — Chemists occupying an independent status and not that of employees, in other words, in business for themselves, who make anah^ses of narcotic drugs or preparations or use such drugs in analyzing other things, are liable to tax as compoimders. As to record to be kept by chemists, see article 93. Art. 28. Wholesale dealers. — Every person who sells or offers for sale narcotic drugs or preparations in original stamped packages (see arts. 64 to 80) is subject to tax as a wholesale dealer. Manufacturers., etc. — A duly qualified importer, manufacturer, compounder, or producer does not incur liability as a wholesale dealer on account of the sale of original stamped packages of his own importation or production (sec. 3235, E, S., see art. 53). He will, lioAvever, be liable as a wholesale dealer in case he sells original stamped packages of any other importer, manufacturer, compounder, or producer. Art. 29. Retail dealers. — Every person who sells narcotic drugs or ])rcparations from original stamped packages (see arts. 64 to 80) is liable as a retail dealer. , With respect to liability on account of sale of original stamped packages, see article 28. Prax)titioner8. — A duly qualified practitioner (see art. 11) is not required to pay additional tax on account of the sale of narcotic drugs for legitimate medical purposes to his own bona fide patients. A practitioner who operates a drug store and in his capacity as a druggist sells narcotic drugs or preparations, except exempt prepa- ations (see arts. 139 to 148) under prescriptions written by other practitioners or himself, incurs additional liability as a retail dealer. Manufacturers. — One registered as a member of class 1 (see art. 21) and who is qualified under the laws of the jurisdiction in which his place of business is located to fill prescriptions will be permitted to do so from original stamped packages of his own production without payment of tax as a retail dealer. If. however, sales are 140106°— 19 4 ^ 26 nAkcotics. made from packages produced by any other person, additional lia- bility to tax as a retail dealer will be incurred. Art. 30. Practitioners. — Physicians, dentists, veterinary surgeons, and other practitioners, including institutions (see art. 35), entitled under the laws of the jurisdiction in which they practice to distribute, dispense, give away, or administer narcotic drugs or preparations are subject to the tax of $3 per annum. Payment of this tax does not entitle the practitioner to furnish narcotic drugs to persons who are not his bona fide patients. As to additional liability incurred on account of the furnishing of narcotics to other persons, see article 29. Practitioners who prescribe narcotic drugs must pay the tax even though they do not keep such drugs in their possession. Art. 31. Branches. — If a concern has one or more separate branches where any of the various taxable occupations is carried on, tax must be paid for each branch separately. (See arts. 22 and 23.) With respect to registration, see article 15. Art. 32. Offices. — A manufacturer who has paid tax as such, and who has a principal office or place of business separate and apart from the establishment where the actual manufacturing is done, is not required to pay an additional tax with respect to the office, pro- vided no merchandise except samples is kept thereat and goods of his own manufacture only are sold. If sales are made at a principal office or place of business, separate and apart from the manufacturing establishment, from stock kept at such office or place, tax as a whole- sale or retail dealer, or both, as the case may be, must be paid with respect to such office or place. Only a principal office or place of business is within the exemption. Tax must be paid with respect to any other places at'Vhich sales are made in an}- event. Art. 33. Warehouses. — Tax does not attach with respect to a ware- house where narcotic drugs are stored, provided no sales are made at such place. If goods stored in a warehouse are sold at some office or place of business located elsewhere, tax must be paid with respect to such office or place, unless the office or place is covered by the ex- emption indicated in article 32. Art. 34. Partnerships. — A partnership is subject to the same tax liability as an individual (see arts. 2 and 52). Should either of the partners be also individually engaged in a separate taxable business, he will incur additional liability with respect to such business. Art. 35. Institutions. — Hospitals, colleges of pharmacy, dental clinics, sanatoriums and other institutions not exempt as public insti- tutions (see art. 42) are subject to the same special tax liability as individuals dealing in or handling narcotic drugs or preparations in the same manner (see arts. 2 and 52). NARCOTICS. 27 ITINERANT VENDORS. [Section 1 — Continued.] Provided, Tliat tlie office, or if none, tlie residence, of any person shall be considered for the purpose of this Act his place of business; Aet. 36. Itinerant vendors. — No person is permitted to dispense or deal in narcotic drugs or preparations except upon orders received or engagements made at a fixed address. A peddler of such dimgs or preparations will be regarded as incurring a separate tax liability and committing an additional offense at each place where a sale is made. With respect to the punishment imposed, see art. 153. PRINCIPAL AND AGENT. [Section 1 — Continued.] But no employee of any person who has registei*ed and paid special tax as herein required, acting within the scope of his employment, shall be required to register and pay special tax provided by this section ; Art. 37. Principals. — Principals, rather than agents, are liable to the taxes imposed. Employers and other principals will be regarded as responsible for the acts of employees and other agents within the scope of their employment, but see article 38. Any dealing in nar- cotic drugs or preparations by an unregistered employee or agent will be presumed to be within the scope of his employment. Aet. 38. Employees. — An employee of a person who has registered and paid tax will not himself incur liability to tax so long as he act-s solely within the scope of his employment. (See art. 37.) However, an employee who, within the scope of his employment, does any un- lawful act, will be held jointly liable with his employer. Unregistered employees who deal in narcotic drugs outside of the scope of their employment will be held individually liable and vigor- ously prosecuted, (See art. 153.) Aet. 39. Nurses. — Nurses are regarded as agents of the physicians or institutions under whose direction or supervision their duties are performed. (See arts. 37 and 38.) They are not permitted to register nor to be in possession of narcotic drugs or preparations except as agents or consumers. The issuance of narcotics to nurses as con- sumers will, of course, be subject to the same limitations as in the case of any other consumers. Any unused narcotic drugs left by a practitioner with a nurse, to be administered during his absence, upon discharge of the nurse, must be returned to the practitioner, who will account for the drugs on his records. (See art. 129.) Any such narcotic drugs found in the possession of a nurse not at the time under the supervision of a practitioner shall be forfeited to the Gov- ernment. (See art. 80.) Aet. 40. Traveling salesmen. — Traveling salesmen who solicit or- ders and forward them to tlieir res^jective principals are not required to register or pay tax. As to orders for exempt preparations secured by traveling salesmen see article 147. 28 NARCOTICS. OFFICIALS OF FEDERAL, STATE, MUNICIPAL GOVERNMENTS, ETC. [Section 1 — Continued.] Provided further, Tliat oflicials of the United States, Territorial, District of Columbia, or insular possessions, State or municipal gov- ernments, who in the exercise of their official duties engage in any of the business herein described, shall not be required to register, nor pay special tax, nor stamp the aforesaid drugs as hereinafter pre- scribed, but their right to this exemption shall be evidenced in such manner as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may by regulations prescribe. Art. 41. Exempt oiScials. — Officials of the United States, and of the government of any State, Territory, District of Columbia, insular possession of the United States, or of any county or municipality therein, who, in the exercise of their official duties, dispense or handle narcotic drugs, are not required to register, nor pay special tax, nor stamp packages containing drugs which they compound or produce. As to evidence of exemption, see article 42. As to the procurement of narcotic drugs by exempt officials, see article 43. If one who is, in his official capacity, exempt, privately engages in business or practices a profession in the course of which narcotic drugs or preparations are dealt in or dispensed, he will be liable in his private capacity the same as a private person. Art. 42. Evidence of exemption. — Each person claiming exemption from liability otherwise incurred on the ground that he is a Govern- ment official (see art. 41) must file with the collector of internal revenue of the district in which he is located satisfactory credentials from such Government or department or branch thereof, in the form of a statement from a superior official of the Government or department or branch thereof certifying that the person claiming the exemption is a duly accredited official of such Government, which credentials must be renewed on or before July 1 of each year. Art. 43. Procurement of drugs. — Before procuring narcotic drugs taxable under the act, it will be necessaiy for an exempt official (see art. 41) to forward to the collector of the district with whom the cre- dentials prescribed by article 42 have been filed, a copy of the con- templated order, with request for a certificate of exemption, which certificate will be furnished by the collector to the official and must be forwarded by such official with the original order, to the manu- facturer or dealer to whom the order is given. The following form wall be used by collectors for the certificate above required: (Name of official.) (Official capacity.) has filed witli this office proper credentials establishing his exemption from special tax under the act of December 17, 1914, as amended by the Revenue Act of 3918, and is entitled to purchase narcotics covered oy attached order with- out use of official order forms. NARCOTICS. 29 Exception. — Special agents and customs agents, for the establish- ment of drawback under customs laws and regulations and inspectors of the Bureau of Chemistry, Department of Agi-iculture, in connec- tion with their duties in enforcing the Food and Drugs Act are en- titled to procure from importers, manufacturers, wholesale dealers, or retail dealers, as the case may be, samples of narcotic drugs or preparations, and such importers, manufacturers, wholesale dealers, or retail dealers may lawfully furnish to any duly accredited special agent or customs agent of the Treasury Department or inspector of the Bureau of Chemistry, Department of Agriculture, the required samples, taking the receipt of such officer therefor, which will be filed with their official narcotic order forms and records. Appropriate notation must be made of such transactions in the monthly returns of members of classes 1 and 2. If an official is engaged in a private business or privately practices a profession in which narcotic drugs or preparations are sold, dis- pensed, given away, or prescribed, the drugs for such purposes must be secured upon regular order forms. (See arts. 100 to 114.) Art. 44. Prescriptions and orders. — When an exempt person pre- scribes or orders in his official capacity, narcotic drugs or nonexempt preparations, the prescription or order should be written on an offi- cial blank, if such blanks are provided by the department of which he is an official. If special blanks are not provided official stationery must be used. The prescriptions and orders must show the name and title of the official by whom they are executed. Art. 45. Filling orders and prescriptions. — Dealers who supply nar- cotic drugs to fill prescriptions or orders of exempt officials should insist upon the execution of such orders and prescriptions in the manner indicated in article 44. They should file such orders and pre- scriptions with the regular narcotic orders and prescriptions required under the provisions of the Act. (See arts. 100 to 125.) Art. 46. Records. — Exempt officials must keep accurate records of the amounts and quantities of narcotic drugs and preparations pur- chased and dispensed, and have such records available for inspection by internal revenue officers. Art. 47. Caution required. — Great care should be exercised by such exempt officials to prevent the narcotic drugs obtained or pres^-ribed by them from falling into the hands of unauthorized persons and to see that they are used only for legitimate purposes. Art. 48. Stamp tax. — With respect to the exemption of Government officials from stamp tax, see article 77. GOVERNMENT INSTITUTIONS. Art. 49. Government institutions. — Hospitals and other institutions and oi'ganizations operated by the Government of the United States, 30 NARCOTICS. or of a State, county, or municipality are exempt from tax. Institu- tions wliich are not actually operated by such a Government are not exempt because of receiving financial contributions or support there- from, but must comply with the requirements of the statutes the same as any other private institutions. (See arts. 2, 35, and 52.) Art. 50. Railroad companies under Federal control.— A railroad com- pany, though under Federal control, is not exempt, and whenever it, through physicians, pharmacists, etc., in its employment, sells or dis- penses original stamped packages of narcotics or sells or dispenses such drugs from original stamped packages, it is required to register and pay tax and conform to the other requirements of the law. VIOLATIONS OF LAW. [Section 1 — Continued.] It shall be unlawful for any person required to register under the provisions of this Act to import, manufacture, produce, compound, sell, deal in, dispense, distribute, administer, or give away any of the afore- said drugs without having registered and paid the special tax as im- posed by this section. Art. 51. Violations. — Persons who, being required to register and pay tax, fail to do so, are liable to be fined not more than $2,000 or imprisoned not more than five years, or both. (See art. 153.) With respect to the liability under section 3176, Revised Statutes, see ar- ticle 54. For information as to who are required to register and to pay tax, see articles 4, 5, and 21, and references therein. DEFINITION. [Section 1— Continued.] That the word " person " as used in this Act shall be construed to mean .and include a partnership, association, company, or corporation, as well as a natural person. Art. 52. Definition. — For definition of " person " see article 1. General Provisions of Law. [Section 1 —Continued.] All provisions of existing law relating to special taxes, as far as necessary, are hereby extended and made applicable to this section. Art. 53. Provisions applicable. — Among the general provisions of law made applicable are sections of the Revised Statutes, 3176, 3235, 3238, 3239, 3240, and 3241. Section 3235 reads as follows : The payment of the special tax imposed shall not exempt from an additional special tax the person carrying on a trade or business in any other place than that stated in the collector's register; but nothing herein contained shall require a special tax for the storage of goods, wares, or merchandise in other places than the place of business, nor, except as hereinafter provided, for the sale by manufacturers or pro- ducers of their own goods, wares, and merchandise, at the place of pro- duction or manufacture, and at their principal office or place of business, provided no goods, wares, or merchandise shall be kept except as samples at said office or place of business. NAECOTICS. 31 Reference to this section has been made in articles 22 and 23. The other sections referred to are dealt with in articles 54: to 63. See also article 150. DELINQUENCY IN FILING RETURNS. Sec. 3176 [R. S.]. If any person, corporation, company or associa- tion fails to make and file a return or list at the time prescribed by law or by regulation made under authority of law, or makes, willfully or otherwise, a false or fraudulent return or list, the collector or deputy collector shall make the return or list from his own knowledge and from such information as he can obtain through testimony or other- wise. In any such case the Commissioner may, from his own knowledge and from such information as he can obtain through testimony or other- wise, make a return or amend any return made by a collector or deputy collector. Any return or list so made and subscribed by the Commis- sioner or by a collector or deputy collector and approved by the Com- missioner, shall be prima facie good and sufficient for all legal purposes. If the failure to file a return or list is due to sickness or absence, the collector may allow such further time, not exceeding thirty days, for making and filing the return or list as he deems proper. The Commissioner of Internal Revenue shall determine and assess all taxes, other than stamp taxes, as to which returns or lists are so made under the provisions of this section. In case of any failure to make and file a return or list within the time prescribed by law, or pre- scribed by the Commissioner of Internal Revenue or the collector in pursuance of law, the Commissioner of Internal Revenue shall add to the tax 25 per centum of its amount, except that when a return is filed after such time and it is shown that the failure to file it was due to a reasonable cause and not to willful neglect, no such addition shall be made to the tax. In case a false or fi-audulent return or li.st is willfully made, the Commissioner of Internal Revenue shall add to the tax 50 per centum of its amount. The amount so added to any tax shall be collected at the same time and in the same manner and as part of the tax unless the tax has been paid before the discovery of the neglect, falsity, or fraud, in which case the amount so added shall be collected in the same manner as the tax. Art. 54, When penalty accrues. — A person required to pay a spe- cial or occupational tax is not generally held liable to penalty, so long as a return is filed within the month in which the liability begins. The same rule will apply to the original return required to be made when a person first engages in a business or occupation subject to tax under these regulations. In view of the positive language of section 1 of the act of December 17, 1914, as amended, however, all succeed- ing returns will be regarded as delinquent, and the 25 per cent penalty applicable, unless such returns are filed not later than July 1 of each year. (See art. 7.) STAMPS. Sec. 3238 [R. S.]. All special tuxes imposed by law, including the tax on stills or worms, shall be paid by stamps denoting the tax, and the 32 NARCOTICS. Commissioner of Internal Revenue is required to procure appropriate stamps for the payment of such taxes ; and the provisions of sections thirty-three hundred and twelve and thirty-four hundred and forty- six, and all other provisions of law relating to the prepara- tion and issue of stamps for distilled spirits, fermented liquors, tobacco, and cigars, shall, so far as applicable, extend to and include such stamps for special taxes; and the Commissioner of Internal Revenue shall have autliority to make all needful regulations relative thereto. Art. 55. Stamps. — Stamps covering special taxes paid by dealers in narcotics (see art. 21) are furnished to collectors in two forms, with and without coupons. The stamps without coupons are for use in those cases where taxes are paid for a full year and no penalty on account of failure to make return in time is incurred. As to when penalty accrues, see article 54. The coupon stamps are for use when tax is paid for a portion of a year only, or penalty is incurred. Stamps without coupons only are issued to cover taxes paid by persons registered in class 5 (see art. 21), since such persons are required to pay the full tax, even when the period covered thereby is less than a year (see art. 140). Collectors will distinctly write or print the taxpayer's name, ad- dress, and registry number (see art. 13), and the number or numbers of the class or classes to which he belongs (see art. 21) on the stamp before it is issued. POSTING OF STAMPS. Sec. 3239 [R. S.]. Every person engaged in any business, avocation, or employment, who is thereby made liable to a special tax, .shall place and keep conspicuously in his establishment or place of business all stamps denoting the payment of said special tax ; and any person who shall, through negligence, fail to so place and keep said stamps, shall be liable to a penalty equal to the special tax, for which his business rendered him liable, and the costs of iiros(K'ution ; but in no case shall said penalty be less than ten dollars. And where the failure to comply with the foregoing provision of law shall be through willful neglect or refusal, then the penalty shall be double the amount above pre- scribed. Provided, That nothing in tliis section shall in any way affect the liability of any person for exercising or carrying on any trade, busi- ness, or profession, or doing any act for the exercising, carrying on, or doing of which a special tax is imposed by law, without the payment thereof. Art. 56. Posting of stamps. — The stamp must be posted in a con- spicuous position in the taxpayer's office, if he has one, otherwise in the place where his business or occupation is carried on. LIST OF TAXPAYERS. Sec. 3240. [R. S.]. Each collector of internal revenue shall, under regulations of the Commissioner of Internal Reveniie, place and keep conspicuously in his office, for public inspection, an alphabetical list NAECOTICS. 33 of the names of all persons who shall have paid special taxes within his district, and shall state thereon the time, place, and business for which such special taxes have been paid, and upon application of any prosecuting officer of any State, county, or municipality he shall furnish a certified copy thereof, as of a public record, for which a fee of one dollar for each one hundred words or fraction thereof in the copy or copies so requested may be charged. Art. 57. List of taxpayers. — Section 3240, Revised Statutes, is ap- plicable to persons subject to tax on account of manufacturing, deal- ing in, or dispensing narcotic drugs or preparatior^, etc. The record in wliicli the required list of names is kept is known as Eecord 10. (See art. K.) CHANGES OF OWNERSHIP. Sec. 3241 [R. S.]. When any person who has paid the special tax for any trade or business dies, his wife or child, or executors or ad- ministrators or other legal representatives, may occupy the house or premises, and in like manner carry on, for the residue of the term for which the tax is paid, the same trade or business as the deceased before carried on, in the same house, and upon the same premises, without the payment of any additional tax. And when any person re- moves from the house or premises for which any trade or business was taxed to any other place, he may carry on the trade or business spe- cified in the collector's register at the place to which he removes, without the payment of any additional tax : Provided, That all cases of death, change, or removal, as aforesaid, with the name of the successor to any person deceased, or of the person making such change or removal shall be registered with the collector, under regulations to be prescribed by the Commissioner of In- ternal Revenue. Art. 58. Change of ownership through death. — Whenever one who has paid tax dies, his wife or child or executors or administrators or other legal representatives, if legally qualified to engage in the business or occupation for which tax is paid, may cryvj on such business or occupation for the residue of the term for which tax has been paid without any additional payment. The successors of the deceased taxpayer must, however, furnish evidence of qualification as required by article 11 and file Form 678, executed under oath, or otherwise, in accordance with article 10. The form thus executed must show the name of the original taxpayer and the names of the successors and their residences, together with all other data indicated by the form. As to liability in case of failure to report, see article 62. Changes of ownership from other causes. — For the rule with respect to change-s of ownership due to causes other than death, see article 19. 140106°— 19 5 34 NAKCOTICS. CHANGE OF ADDRESS. Ajrt. 59. Procedure by taxpayer. — Wlienever a special taxpayer re- moves his business from the place specified in his last return, on Form 678 (see art. 7), and stated in his special tax stamp (see art 55), to another address, he should, not later than the month in which the removal occurs, register the fact by filing with the collector of the district within which the old place of business is located, an additional Form GTS, executed under oath or other- wise, US required by article 10, and wdth such modification of the printed matter as is necessary, setting forth the time and place where he intends to engage in the business described. The infor- mation with respect to ownership required by article 9 must appear. As to liability in case of failure to duly report a cltange of address, see article 62. Aet. 60. Procedure by collector — ^Kemoval witbin district — When registration is made by a special taxpayer in the manner indicated by article 59, of the fact of the removal of his business to another place in the same district, the collector will enter in his alphabetical list (record 10, see arts.' 14 and 57) opposite the name of the special taxpayer, the place to wdiich such removal is made and the date of the removal. The same information shall also be entered clearly on the face of the special tax stamp. Aet. 61. Procedure by collector— B-emoval to another district. — When the removal is to another collection district, the collector will note the transfer on his alphabetical list, stating clearly the location where the business is to be carried on, and shall also state the same on the face of the stamp and then transmit the stamp to the col- lector of the district to which said business is removed, who shall enter the name, business, and place of business of the taxpayer in his alphabetical list in the same manner as he is required to enter the names, places, and businesses of taxpayers who pay their taxes in his district (see art. 60) , and shall then transmit the special tax stamp to the taxpayer. Art. 62. Failure to report liability. — Any person succeeding to and carrying on a business for which special tax has been paid by a de- ceased j)erson, and any person removing to and carrying on a business with respect to which he has himself paid tax at a place othei* than that for which the tax was paid, without registering such change or removal, will be regarded as liable to additional tax and as having carried on business in violation of section 3176, Eevised Statutes, and subject to the penalty therein prescribed for failure to make return. (See arts. 19 and 54.) Art. 63. Certificates in lieu of stamps lost or destroyed. — These regu- lations shall apply to certificates on Form 7541, issued in lieu of special-tax stamps lost or destroyed. NAKCOTICS. 35 STAMP TAX. [Section 1 — Continued.] That there shall be levied, assessed, collected, and paid upon opium, coca leaves, any compound, salt, derivative, or preparation thereof, produced in or imported into the United States, and sold, or removed for consumption or sale, an internal-revenue tax at the rate of 1 cent per ounce, and any fraction of an ounce in a package shall be taxed as an ounce, such tax to be paid by the importer, manufacturer, pro- ducer, or compounder thereof, and to be represented by appropriate stamps, to be provided by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury; and the stamps herein provided shall be so affixed to the bottle or other container as to se- curely seal the stopper, covering, or wrapper thereof. The tax imposed by this section shall be in addition to any import duty imposed on the aforesaid drugs. It shall be unlawful for any person to purchase, sell, dispense, or distribute any of the aforesaid drugs except in the original stamped package or from the original stamped package; and the absence of appropriate tax-paid stamps from any of the aforesaid drugs shall be prima facie evidence of a violation of this section by the person in whose possession same may be found ; and the possession of any original stamped package containing any. of the aforesaid drugs by any person who has not registered and paid special taxes as required by this section shall be prima facie evidence of liability to such spe- cial tax : Provided, That the provisions of this paragraph shall not apply to any person having in his or her possession any of the afore- said drugs which have been obtained from a registered dealer in pur- suance of a prescription, written^ for legitimate medical uses, issued by a physician, dentist, veterinary surgeon, or other practitioner reg- istered under this Act ; and where the bottle or other container in which such drug may be put up by the dealer upon said prescription bears the name and registry number of the druggist, serial number of prescription, name and address of the patient, and name, address, and registry number of the person writing said prescription ; or to the dispensing, or administration, or giving away of any of the afore- said drugs to a patient by a registered physician, dentist, veterinary surgeon, or other practictioner in the course of his professional prac- tice, and where said drugs are dispensed or administered to the patient for legitimate medical purposes, and the record kept as required by this Act of the drugs so dispensed, administered, distributed, or given away. GENERAL. Art. 64, Scope of law. — The law imposes an excise tax on opium, and coca leaves, and compounds, salts, derivatives, and preparations thereof. All preparations containing narcotic drugs except those within the exemption indicated by articles 139 to 148 are subject to the tax. The tax nmst be paid with respect to all goods of taxable character removed from customs custody or from the place of domestic manu- ' facture on or after February 25, 1919. 36 NARCOTICS. A-RT. 65. Who is liable. — The tax on imported goods is to be paid by the importer. The tax on domestic goods is payable by the domestic manufacturer, compounder, or producer. Art. CG. Measure of tax. — The tax is 1 cent per ounce or fraction thereof in a package. For instance, a package containing 5^ ounces will be subject to a tax of 6 cents. A package containing less than 1 ounce will be subject to a tax of 1 cent. The tax is measured by the entire contents of a package or con- tainer, not by the weight of the narcotic contained in the prepara- tion. Akt. 67. Manner of payment. — The tax is paid by attachment of stamps to the package forming the unit of tax (see art. 08). One stamp is to be affixed so as to securely seal the stopper, covering, or wrapper, but see article 70. Aet. 68. Unit of tax. — ^With the exception noted below, the unit of tax is the smallest individual package or container. Thus, if a manu- facturer sells a preparation in packages containing one-tenth of an ounce each and puts 10 such packages into a, larger container, it is not sufficient to place a stamp of the denomination of 1 cent on the larger container, but each of the smaller packages must be sepa- rately stamped. Am.'poules. — When ampoules each containing only a single dose are put up for the retail trade in packages holding not more than 12 ampoules, tax may be paid on the joint contents of the entire num- ber of ampoules by affixing a stamp or stamps to the outside package or container. Art. 69. Time of payment. — The tax must be paid by attachment of stamps before the goods are withdrawn from customs custody or from the place of domestic manufacture. Art. 70. Kinds of stamps. — Adhesive strip stamps are issued in four different sizes: 1^ by \ inches, 2^ by f inches, 4 by -^ inches, and 6 by I inches. The denomination is 1 cent. Overprinted documentary stamps of the denominations of 1 cent, 2 cents, 4 cents, 10 cents, 25 cents, and $1 are also furnished. A strip stamp must be used to seal the package as indicated in article 67. Any tax additional to that represented by the stamp used to seal the package is to be paid by at- tachment of one or more overprinted documentary stamps of the appropriate denomination or denominations to the side or bottom of the package. As to cancellation of stamps, see article 79. Original stamps of the required denominations will be issued as soon as they can be procured, and will render the use of overprinted stamps unnecessary. Art. 71. Procurement of stamps. — Stamps will be furnished on requi- sition of persons registered in class 1. (See art. 21.) The stamps will NAECOTICS. 37 be issued to no other persons, and are not transferable. The requi- sitions will be made on Form 786. Blank requisition forms may be procured from collectors. Collectors will preserve the requisitions and keep a record of the total quantity of stamps secured by each person from whom requisitions are received. Art. 72. Remanufacture. — A new tax liability will attach whenever a new derivative, compound, or preparation is produced, regardless of whether or not tax has been paid on the component ingredients or part thereof. Thus, opium is subject to tax when imported. Morphine derived from such opium will be subject to additional tax. A preparation manufactured by the use of such morphine will be subject to a third tax, and so on. Art. 73. Repacking. — If a preparation upon which tax has been paid is taken from the stamped containers and placed in new pack- ages, such new packages must be stamped as though an entirely new preparation had been produced. (See arts. 26 and 69.) Art. 74. Exports. — Narcotic drugs or preparations manufactured in this country which are subsequently exported are subject to tax whether manufactured expressly for export or not, there being no provision for exportation of narcotics free of tax. Art. 75. Marking containers. — Each original stamped package con- taining a narcotic drug unmixed with other ingredients must show the name or kind of the narcotic drug contained therein, and that it is not mixed with any other ingredient. If the narcotic drug is mixed with some other ingredient or ingredients the quantity of narcotic to the ounce must be shown. If the preparation contains more than one kind of narcotic, the name and quantity of each to the ounce must be indicated. If the drug or preparation is in tablet, pill, ampoule, or suppository form, the quantity in each unit may be given. If such information is given it will not be necessary, so far as the narcotic statute is concerned, for the entire net weight of the contents to be shown. The packages and their contents will, however, be subject to the provisions of the Food and Drugs Act and regulations issued thereunder. EXEMPTIONS. Art. 76. Exempt preparations. — With respect to preparations con- taining minute quantities of narcotics, and liniments or ointments for external use which are exempt from tax, see articles 139 to 148. Art. 77. Government officials. — Officials of the Government of the United States and other Governments, shown by articles 41 to 48 to be exempt from special tax, and who have complied with the require- ments indicated therein are permitted to manufacture and produce narcotic drugs and preparations without payment of tax thereon. However, if such drugs or preparations leave the possession of the 38 NARCOTICS. producer, they should be siiitabl}' labeled to show their exempt character. Akt. 78. Prescriptions and solutions for practitioners. — lietail drug- gists may, under the conditions indicated by article 25, under head of " Retail dealers " fill prescriptions and supply solutions for office practice without attachment of stamps. As to requirements in regard to prescriptions, see also articles 115 to 125. CANCELLATION OF STAMPS. [Section 1 — Continued.] And all tlie pi-ovisions of existing laws relating to the engraving, issuance, sale, accountability, cancellation, and destruction of tax-paid stamps provided for in the internal revenue laws are, in so far as neces- sary, hereby extended and made to apply to stamps provided by this section. Apt. T9. Cancellation of stamps. — Stamps will be canceled by noting thereon in red or black ink the registry number (see art. 13) of the person affixing the same and the date of cancellation, or the same data may be shown by perforation of the stamps. FORFEITURE. [Section 1 — Continued.] That all unstamped packages of the aforesaid drugs found in the possession of any person, except as herein provided, shall be subject to seizure and forfeiture, and all the provisions of existing internal reve- nue laws relating to searches, seizures, and forfeitures of unstamped articles are hereby extended to and made to apply to the articles taxed under this Act and the persons upon whom these taxes are imposed. Art. 80. Forfeiture of unstamped packages. — All packages containing narcotic drugs or preparations subject to stamp tax withdrawn from customs custody or from the place of domestic manufacture for con- sumption or use, after February 24, 1919, unstamped, are subject to seizure and forfeiture. (See arts. 64 and C9, also art. 154.) Narcotic drugs and compounds produced under the conditions in- dicated by articles 76 to 78 may be withdrawn unstamped without becoming subject to forfeiture. MONTHLY REPORTS. [Section 1 — Continued.] Importers, manufacturers, and wholesale dealers shall keep such books and records and render such monthly returns in relation to the transactions in the aforesaid drugs as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may by regulations require. IMPORTERS, MANUFACTURERS, ETC. Art. 81, General. — Manufacturers, importers, compounders and producers (see art. 21) will render monthly returns, under oath, in duplicate, to the collector of internal revenue on the first day of NARCOTICS. , 39 each month succeeding that for which rendered or within 15 days thereafter. One copy of each return will be forwarded by the col- lector to the Commissioner of Internal Revenue. The returns will be made on Forms 810, 810a, and 810b. They may be prepared in triplicate and one copy, properly bound, retained by the importer, manufacturer, or producer as a record. If, however, a record is not kept in this manner, the importer, manufacturer, or producer will be required to keep a book record provided by himself with box headings conforming with those of Forms 810, 810a, and 810b. On each of Forms 810a and 810b, in the headings thereof, will be shown the month and year for which the return is made, the name and registry number of the taxpayer, and the location of his place of business (indicated by showing the street and number, the town or city, and the State). On the first page of Form 810 the name, registry num- ber, district, the place of business (indicated by giving the street and number, town or city, and the State) , the month and year for which the return is made, and the number of inclosures in the return will be shown. Art. 82. Eeceipts. — On Form 810a will be reported -all taxable nar- cotic drugs and preparations received by the registrant as an im- porter, manufacturer, or compounder. Such narcotic drugs and preparations so received will be grouped separately in the order of receipt as (1) importations, (2) goods received from other sources, and (3) returned goods, and a notation will be made in the third column of each page to show to which of the three classes the goods listed thereon belong. No goods except those belonging to the class indicated by the notation should be listed on the page. With respect to each item received there will be shown (1) the date and serial number of the order form, (2) the name and address of the person or firm from whom the goods are received, (3) the name and quantity of the drug or preparation shown by the order form, (4) the number of taxable packages constituting the item, (5) the quantity in ounces and grains of narcotic drugs in each taxable package, (6) the name or names of the narcotic ingredient or ingi'edients, indicated by checking whichever of the designations, "opium," "morphine," " codeine," " heroin," " dionin," " other opium alkaloids and deriva- tives," " cocaine," or " coca leaves," shown on the form is appro- priate, and (7) the total amount of tax in dollars and cents. Art. 83. Dispositions. — On Form 810b will be reported all disposi- tions of taxable narcotic drugs and preparations by the registrant as an importer, manufacturer, producer, or compounder. Such nar- cotic clrugs and preparations so disposed of will be gi'ouped sepa- rately, in the order of disposition as (1) domestic sales, (2) exports, and (3) retuiTied goods, and a notation will be made in the third column of each page to show to which of the three classes the goods 40 NARCOTICS. listed thereon belong. No goods except those belonging to the class indicated by the notation should be listed on the page. With respect to each item disposed of, there will be shown in the case of domestic transactions (1) the date and serial number of the official order form, (2) the name, address, registry number, class, and collection district of the person or finn to whom sold, (3) the name and quan- tity of the drug or preparation as shown by the order form, (4) the number of taxable packages constituting the item, (5) the quantity in ounces and grains of narcotic drugs in each taxable package, (6) the name or names of the narcotic ingredient or ingredients, indi- cated b}?^ checking whichever of the designations, "opium," "mor- phine," " codeine," " heroin," " dionin," " other opium alkaloids and derivatives," " cocaine," or " coca leaves," shown on the form is ap- propriate, and (7) the total amount of tax in dollars and cents. In the case of exports, the date of the order will be entered in the first column. The columns headed " Serial nmnber," " Registry number," " Class," and " District " may be left blank. Art. 84. Summary. — On the third page of Form 810 will be given a summary of the transactions, in opium (crude, granulated, and powdered), morphine and its salts, codeine, and its salts, heroin and its salts, ethyl-morphine or dionin, other opium alkaloids and de- rivatives, cocaine and its salts, and coca leaves, respectively. In this summary will be reported the quantity in ounces, ounces and grains, or in grains, as the case may be, of each of the respective kinds of drugs on hand at the beginning of the month for which the return is made, including unmixed drugs and those contained in mixed prep- arations and remedies, both taxable and exempted. There will also be separately reported tiie quantity of narcotic drugs of each kind used during the month in the manufacture of taxable preparations. When a preparation containing narcotic ingi-edients is used in the manufac- ture of another preparation the summary should include only the quantity of the narcotic drug contained in the original j^reparation, and not the entire bulk of such preparation. The quantity of nar- cotic drugs of each kind used during the month in the manufacture of exempted preparations will be shown in the same manner as the quantity used in the manufacture of taxable preparations. The quantity used during the month in filling prescriptions, and the quan- tity lost or wasted in the process of manufacture will also be sepa- rately shown. The final data to be shown by the summary will be the quantity of narcotic drugs of each kind on hand at the close of the month for which the return is made, and this data should agree ex- actly with the data indicating the quantities on hand at the beginning of the month, shown by the return for the succeeding month. Art. 85. Stamp account. — In the space provided on the third page of Form 810, will be shown respectively (1) the value of stamps on NARCOTICS. 41 hand and not affixed to packages at the beginning of the month, (2) the vahie of stamps received from the collector during the month, (3) the value of stamps used during the m.onth bj' affixing them to packages containing drugs manufactured or repacked, and (4) the value of stamps on hand at the close of tlie month. WHOLESALE DEALERS. Art. 86. General. — "Wholesale dealers will render monthly returns under oath, in duplicate, to the collector of internal revenue on the first day of each month succeeding that for which rendered, or within 15 days thereafter. One copy will be forwarded by the collector to the Commissioner of Internal Eevenue. These returns will be made on Forms 811, 811a, and 811b. These forms may be written up in triplicate and one copy, properly bound, retained by the wholesale dealer as a record. If a record is not kept in this manner, the wholesale dealer will be required to keep a book record provided by himself with box headings conforming with those on Forms 811, 811a, and 811b. On each of Forms 811a and 811b, in the headings thereof, will be shown the month and year for which the return is made, the name, and the place of business (indi- cated by giving the street and number, the town or city, and the State) of the person or firm making the return. On the first page of Form 811 will be shown the name, registry nuniber, district, place of business (indicated by giving the street and number, the town or city, and the State), the month and year for which the return is made, and the number of inclosures in the return. Art. 87. Receipts. — On Form 811a will be reported all taxable nar- cotic drugs and preparations received by the registrant as a whole- sale dealer. (See art. 90, classes 2 and 3.) Such narcotic drugs and preparations so received will be grouped separately, in the order of receipt, as (1) original receipts, and (2) returned goods, respectively. On each page on which is listed returned goods should be noted in column three after the printed word " forward,'' the words " re- turned goods." With respect to each item received will be shown (1) the date and serial number of the order form, (2) the name and address of the person or firm from whom received, (3) the name and quantity of the drug or preparation as given on the oi:der form, and (4) the number of taxable packages constituting the item. Art. 88. Dispositions. — On Form 811b will be reported all tax- able narcotic drugs and preparations disposed of by the registrant as a wholesale dealer. Such narcotic drugs and preparations so dis- posed of will be grouped separately, in the order of disposition as (1) domestic sales, (2) exports, and (3) returned goods, respectively. On each page on which exported or returned goods are listed should 42 NARCOTICS. be noted in column three after the printed word " forward " the words " exports " or " returned goods." Each item disposed of will in the case of domestic transactions be reported by giving (1) the date and serial number of the order form, (2) the name, address, registry number, class and district of the person or firm to whom sold, (3) the name and quantity of the drug or preparation as given on the order form, and (4) the number of taxable packages constituting the item. In the case of exports, the date of the order will be entered in the first column. The columns headed " Serial number," " Eegistry number," " Class," and " District " may be left blank, Akt. 89. Summary. — On the third page of Form 811 will be given a summary of the transactions in taxable narcotic drugs and prepara- tions. In this summary will be shown (1) the quantity of such drugs and preparations on hand at the beginning of the month for which the return is made, (2) the quantity received during the month, (3) the quantity disposed of during the month, and (4) the quantity on hand at the close of the month for which the return is made, the quantity in each case to be the number of taxable pack- ages. TRANSFERS, ETC. Art. 90. Transfers — Class 1. — One registered as a member of class 1, who is also registered at the same premises as a member of any other class, must take up all taxable goods received and intended for manufacturing, repacking, etc., on his account as a member of class 1. Wlien one registered as a member of class 1 and also as a whole- sale dealer at the same premises, receives goods in stamped packages intended for sale in such packages they should be taken up in his account as a wholesale dealer. Classes 1 and 2. — ^When a member of class 1 makes transfers as a member of class 1 to his stock as a wholesale dealer (class 2), he must report each transfer on Form 810b in the same manner as other dis- positions (see art". 83) , except that, an order form not being necessary, instead of giving the date and serial number of the order form (see art. 102), an appropriate notation must be made indicating such transfer. Narcotic drugs and preparations transferred from the stock of the registrant as a wholesale dealer to his stock as a member of class 1 should be reported in the same manner on Form 811b (see art. 87) and recorded received as a member of class 1 on Form 810a (see art. 82). Classes 1 and 3. — If a member of class 1 is also registered as a retail dealer, narcotics transferred from his account as a member of class 1 to his account as a retail dealer will also be reported on Form 810b (see art. 83) in the same manner as transfers of narcotics to 2i7ARCOTICS. 43 his account as a wholesale dealer. In case one registered as a member of class 1 transfers stock from his account as a member of such class to himself as a retail dealer, and subsequently transfers the same stock back to his account as a member of class 1, the second transfer must be entered on Form 810a among the items headed as "Returned goods," in the same manner as transfers of narcotics from a wholesale dealer's stock to his stock as a member of class 1. Classes 2 and 3. — ^Where a wholesale dealer is also registered as a retail dealer at the same address, narcotics received, whether for wholesale or retail trade, must be reported on Form 811a. In order for any person having such a double registration to use any part of narcotic drugs and preparations purchased by him in retail trade, it will be necessary for him to transfer such drugs and preparations from his account as a wholesale dealer to himself as a retail dealer. Such transfers will be reported on Form 811b in the same manner as other dispositions (see art. 88), except that instead of giving the date and serial number of the order form (see art. 102) of each item, an appropriate notation must be made indicating the transfer. Nar- cotic drugs and preparations transferred from a retail stock to the registrant's stock as a wholesale dealer must be reported on Form 811a in the same manner and entered on the pages headed " Returned goods." Art. 91. Collectors will examine and forward report. — ^Upon receipt of reports, collectors will carefully examine same and see that they are correct and properly rendered in every respect before forward- ing copy to the Commissioner. The examinations should be made promptly and all original returns forwarded to the Commissioner of Internal Revenue within 10 days after receipt from taxpayers, the duplicate returns being retained in the collectors' offices. Art. 92. Transfer of business— Class 1 or 2. — A person registered in class 1 or 2 (see art. 21), desiring to transfer his business to a suc- cessor who will continue the business at the same location will be required to notify the collector of the district (see art. 59). Upon qualification of his successor, the collector will detail a deputy to proceed to the place of business and supervise the taking of an in- ventory of the stock. The person retiring from business will render a return, as indicated in the preceding articles, covering the trans- actions occurring during the portion of the month preceding the transfer. Such final returns must show to whom the business was transferred. The successor must render a similar return covering the balance of the month and showing who the predecessor was. In all cases where a transfer of ownership or indentity, as by the taking in of a partner, etc., is made, this procedure will be followed. 44 NARCOTICS. MISCELLANEOUS REGULATIONS. [Section 1 — Continued.] The Commissioner of Internal Revenue, witli the approval of the Sec- retary of tlie Treasury, shall make all needful rules and regulations for carrying the provisions of this Act into effect. Art. 93. Chemists. — Chemists and chemical laboratories subject t© tax (see art. 27) and procuring narcotic drugs to be used as reagents in analytical work (see art. 101 as to order forms) must keep records and render returns the same as other members of class 1 (see arts 81 to 85). Art. 94. Manner of keeping drugs. — Narcotic drugs and prepara- tions must at all times be segregated from the general stock of drugs or medicines and be kept under lock and key. Art. 95. Losses by accident. — Where narcotic drugs or preparations are lost or destroyed through breakage of the container or other acci- dent in the course of transportation or otherwise, it will be necessary for the pei-son having title thereto to make affidavit as to the quantity and kind of drugs lost or destroyed, and the reason therefor, and for- ward the same to the collector of internal revenue immediately, who will, if he deems it advisable, have an investigation made. A copy of such affidavit should be placed on file with the duplicate order form. As to losses in transit, see also article 113. Art. 96. Procedure in case of theft. — ^Where losses by theft occur, a sworn statement of the facts, a list of the lost narcotic drugs and preparations stolen, and evidence that the local authorities were noti- fied must be filed immediately with the collector. Art. 97. Court sales. — Court officers in making sales of narcotic drugs and preparations under judicial proceedings must prepare a complete inventory, in duplicate, of such drugs and preparations, forward the original to the collector of internal revenue, and re- quire the purchaser, who must be a registered person, to make out, in duplicate, an official order form, the original to be given the insolvent concern and the duplicate to be retained by the purchaser. Upon receipt of the drugs or preparations the purchaser must prepare a supplementary inventory, in duplicate, forward the duplicate to the collector and retain the original in his file. As to inventories in general, see article 12. Art. 98. TJnclaimed freight or express packages. — The sale of un- claimed freight or express packages containing narcotic drugs, by officials of railways and express companies, at public auction, to un- registered persons, except exempt officials of Federal, State, or muni- cipal governments (see arts. 41 to 48) is in violation of the law. AMien a sale of such packages is to be made, the collector of the district should be notified by the railway or express officials a suffi- cient length of time in advance of the sale to permit the detail by the (Collector of an officer to inspect all unclaimed packages to be sold NAECOTICS, 45 and identify such as T^ontain narcotic drugs. An internal revenue officer must be jDresent at the time of sale to see that the packages containing narcotic drugs are .sold only to persons who are registered ander the law, or to exempt officials. The registered person securing narcotic drugs through such sale must, at time of purchase, make a supplementary inventory (see art. 12), in duplicate, of the drugs coming into his possession; retain the original for file with his order forms, and forward the duplicate to the collector. Art. 99. Ocean vessels. — Xarcotic drugs and preparations for stock- ing medicine chests and dispensaries maintained on board vessels in international trade and vessels engaged in trade between ports of the United States (provided there is no registered physician employed on board the same), and vessels belonging to the vari- ous departments of the Government, may only be obtained with the approval of commissioned medical officers and acting assistant sur- geons of the United States Public Health Service, and upon special order forms procurable from such officers. If a physician registered under the provisions of this act is employed on board a merchant vessel, such medical supplies may be purchased only upon his order. ORDER FORMS. Sec. 2. That it shall be unlawful for any person to sell, barter, exchange, or give away any of the aforesaid drugs except in pui-suance of a written order of the person to whom such article is sold, bartered, exchanged, or given, on a form to be issued in blank for that purpose by the Commissioner of In- ternal Revenue. Every person who shall accept any such order, and in pur- suance thereof shall sell, barter, exchange, or give away any of the aforesaid drugs, shall preserve such grder for a period of two years in such a way as to be readily accessible to inspection by any officer, ;igent, or employee of the Treasury Department duly authorized for that purpose, and the State, Terri- torial, District, municipal, aud insular officials named in section five of this Act. Every i)erson who shall give an order as herein provided to any other person for any of the aforesaid drugs shall, at or before the time of giving such order, make or cause to be made a duplicate thereof on a form to be issued in blank for that purpose by the CommLssioner of Internal Ilevenue, and in case of the acceptance of such order, shall preserve .such duplicate for said period of two years in such a way as to be readily accessible to inspection by the officers, agents, employees, and officials hereinbefore mentioned. Nothing contained in this section shall apply — (a) To the dispensing or distribution of any of the aforesaid drugs to a patient by a physician, dentist, or veterinary surgeon registered under this A.ct in the course of his professional practice only : Provided, That such phy- sician, dentist, or veterinary surgeon shall keep a record of all such drugs dis- pensed or distributed, slio\nng the amount dispensed or distributed, the date, and the name and address of the patient to whom such drugs are dispensed or distributed, except such as may be dispensed or distributed to a patient upon whom such physician, dentist or veterinary siu'goon shall personally attend ; and such rectrd shall be kept for a period of two years from the date of dis- pensing or distributing such drugs, subject to inspection, as provided in this Act. 46 NAECOTICS. (b) To the sale, dispensing, or distribution of asy of the aforesaid drugs by a dealer to a consumer under and in pursuance of a written prescription issued by a physician, dentist, or veterinary surgeon registered under this Act: Provided, Jioioever, That such prescription shall be dated ass of the day on which signed and shall be signed by the physician, dentist, or veterinary surgeon who shall have issued the same : And provided fiirtlier. That such dealers shall preserve such prescription for a period of two years from the day on which such prescription is filled in such a way as to be readily accessible to inspection by the officers, agents, employees, and officials herein- before mentioned. (c) To the sale, exportation, shipment or delivery of any of the aforesaid drugs by any person within the United States or any Territory or the District of Columbia or any of the insular possessions of the United States to any person in any foreign country, regulating their entry in accordance with such regulations for importation thereof into such foreign country as are pre- scribed by said country, such regulations to be promulgated from time to time by the Secretary of State of the United States. (d) To the sale, barter, exchange, or giving away of any of the aforesaid drugs to any officer of the United States Government or of any State, terri- torial. District, county, or municipal or insular government lawfully engaged in making purchases thereof for the various departments of the Army and Navy, the Public Health Service, and for Government, State, territorial, Dis- trict, county, or municipal or insular hospitals or prisons. The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall cause suitable forms to Ibe prepared for the purposes above mentioned, and shall cause the same to be distributed to collectors of internal revenue for sale by them to those persons who shall have registered and paid the special tax as required by section one of this Act in their districts, re- spectively ; and no collector shall sell any of. such forms to any persons other than a person who has registei*ed and paid the special tax as required by section one of this Act in his district. The price at which such forms shall be sold by said collectors shall be fixed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, but shall not exceed the sum of $1 per hundred. Every collector shall keep an account of the number of such forms sold by him, the names of the purchasers, and the number of such forms sold to each of such purchasers. Whenever any col- lector shall sell any of such forms, he shall cause the name of the purchaser thereof to be plainly written or stamped thereon before delivering the same; and no person other than such purchaser shall use any of said forms bearing the name of such purchaser for the puiTose of procuring any of the aforesaid drugs, or furnish any of the forms bearing the name of such purchaser to any person with intent thereby to procure the shipment or delivery of any of the aforesaid drugs. It shall be unlawful for any person to obtain by means of said order forms any of the aforesaid drugs for any purpose other than the use, sale, or distribution thereof by him in the conduct of a lawful business in said drugs or in the legitimate practice of his profession. The provisions of this Act shall apply to the United States, the District of Columbia, the Territory of Alaska, the Territory of Hawaii, the insular pos- sessions of the United States, and the Canal Zone. In Porto Rico and the Philippine Islands the administration of this Act, the collection of the said special tax, and the issuance of the order forms specified in section two shall be performed by the appropriate internal-revenue officers of those governments, and all revenues collected hereunder in Porto Rico and the Philippine Islands shall accrue intact to the general governments thereof, respectively. The courts of first instance in the Philippine Islands shall possess and exercise NARCOTICS. 47 jurisdiction in all cases arising under triis Act in said islands. The President is autliorized and directed to issue such Executive orders as will carry into effect in the Canal Zone the intent and purpose of this Act by providing for the registration and the imposition of a special tax upon all persons in the Canal Zone who produce, import, compound, deal in, dispense, sell, distribute, or give away opium or coca leaves, their salts, derivatives, or preparations. PROCUREMENT. Art. 100. Purpose of order forms. — Order forms are required to be used so tliat transfers of narcotic drugs from one person to another may be traced and the proper person held responsible m case of their misuse. The correct use of order forms is of the very highest im- portance, and no violation of the regulations with respect thereto will be tolerated. Each collector will be held responsible for the order forms which he receives. Registered persons will likewise be held responsible for the unused order forms in their possession and should keep such forms in a safe or under lock and key to prevent their falling into the hands of unauthorized persons. Order forms must be used only for the procurement of narcotic drugs and preparations within the purview of the law. They should not be used for ordering preparations which do not contain narcotics nor need they be used for ordering exempt preparations. With re- spect to exempt preparations, see articles 139 to 148. Imports. — Order forms must be used in withdrawing goods from customs custody. Art. 101. Analytical chemists. — Chemists and chemical laboratories subject to special tax (see art. 27) must procure any narcotic drugs to be used as test reagents in analytical work on order forms. As to records to be kept, see article 93. Art. 102. Not required — When. — Narcotic drugs and preparations may be transferred from on© person to another without the use of order forms, (1) pursuant to prescriptions issued for legitimate medical purposes (see arts. 115 to 125), (2) when dispensed by a practitioner for legitimate medical purposes to his own bona fide patients (see art. 12G). Neither is the use of order forms necessary to cover transfers made by a person registered at the same location in more than one class from his account as a member of one class to his account as a member of another class, except that one registered as a member of class 4 (see art. 21), who is also registered as a member of class 1, 2, or 3, must use order forms to cover transfers to or from himself as a member of class 4. Art. 103. Ey v/hom procurable. — Blank order forms may be obtained only by persons who are duly registered (see arts. 5 and 139) and have legitimate use therefor. Order forms will not be furnished to persons registered in class 5 (see art. 21) who are not manufacturers, since such persons could have no legitimate use for them. 48 NARCOTICS. Art. i04. Manner of procurement and issuance. — A person desiring and entitled to receive order forms (see art. 103) should forward requisition on Fomi 679 to the collector of the district in which he is doing business. The applicant must place his registry number (see art. 13) in the space provided therefor in the upper right-hand corner of the blank. The order forms are issued in books containing 10 forms each. A charge of 10 cents is made for each book. The requi- sition should be accompanied by remittance of the proper amount. Blank requisition Form 679 may be obtained from the collector. Before issuing the order forms the collector will cause to be shown thereon the name, address, registry number, and class number or numbers of the jjerson to whom they are supplied. Art. 105. Requisitions to be filed. — The collector will stamp each requisition with the date when filled, enter thereon the first and last serial number of the order forms sold in pursuance thereof, and file all requisitions bearing a given registry number together. The requi- sitions will thus serve as a record of the order forms procured by each person. Art. 106. Signatures to be compared. — ^The signature on the requisi- tion must be compared with that appearing on the application for registration (see art. 6) or, if the requisition is signed by an agent, the signature must be compared with that appearing in the power of attorney (see art. 108). Unless the collector is satisfied that the requisition is authentic it will not be honored. EXECUTION AND FILING. Art. 107. Gentral. — Order forms are issued in duplicate and must be executed in duplicate. They are arranged to permit the execution of the original and duplicate simultaneously by insertion of a carbon sheet. The original must not leave the possession of the person executing it until the duplicate is made. Persons who fail to execute a duplicate are liable to punishment under section 9 of the statute. (See art. 153.) The duplicate must be kef)t on file for at least two years by the per- son executing it. The original is to be filed and preserved for a like period by the person accepting the order. An order is regarded as accepted when notice to that effect is given, or, if no notice is given, when the goods are delivered or shipped. With respect to unaccepted orders, see article 110. The attachment of extra sheets to order forms is not permitted. If one order form is not sufficient to include all the items of an order5 a second form must be used. The order forms are intended solely for the transfer of narcotic drugs and preparations from one regis- tered person to another. They must not in any case be used as prescriptions. NARCOTICS. 49 Art. 108. Signature. — The signing of narcotic order forms with the iiame of a firm, corporation, etc., without indication of individual responsibility is not permissible. Neither may the name of the per- son Vviio is individually responsible be printed or stamped, but the signature of the person signing the application for registration (see art. 8) must appear in his own handwriting. Exception — poxoer of attorney. — However, when it is impossible for the person signing tlie application for registration to sign the order forms himself, they may be signed by another person, provided a legally effective power of attorney authorizing such other person to sign order forms has previously been filed with and approved by the collector. Art. 109. Entering of items — Fluid preparations. — When packages containing less than 16 fluid ounces each are ordered, the number of ounces in each package shall be indicated on the order form. If the packages contain 16 ounces or more each, the content of each package may be shovN'n in terms of pints, quarts, or gallons. However, the content of each single package must be shown. It is not permissible to show the entire content of a number of packages as a single whole without specifying the content of eacli individual package. Non-Uquid 'preparations. — In the case of preparations in solid, powder, or other than liquid form, the content of each individual package (see art. 68) should be entered in terms of ounces or grains or, if the preparation be put up in tablet, pill, ampoule, or sup- pository form, the number of units in each individual package may be stated. Name of narcotic. — Whether the preparation be in liquid or non- liquid form the name or names of the particular narcotic or narcotics contained therein should be shown. Art. 110. Unaccepted orders. — If an order is not accepted or if, for any reason, one can not be filled, the form should be returned to the maker with a letter of explanation. When received by the maker the returned original and the letter of explanation must be at- tached to the duplicate and retained on file. An order form once executed to one vendor can not be forwarded to another vendor. Mlien an order can not be filled in its entirety, a notation showing the actual quantities supplied, and the date of delivery, should be made by the vendor on the original and by the vendee on the dupli- cate. Like notations should also be made showing the filling of the balance of tlie oixler or any portion thereof at any subsequent time or times. Art. 111. Forms mutilated, lost, or destroyed. — If an order form is improperly executed or mutilated so as to make it unusable, it must not be destroyed, but both the original and duplicate should be kept on file with the other duplicates. 50 NAECOTICS. If an original order form is lost in course of transmission, the person executing it shall, upon advice of the person to whom it was directed that it has not been received, execute another order in dupli- cate and an affidavit stating that the goods covered by the first order were not received through loss of the order form, noting on the second order the number and date of the lost order and the fact that same was lost. The duplicate of the second order and the affidaAnt will be filed with the duplicate of the order form first exe- cuted. The second original order form will, of course, be forwarded in due course. If the first order form should, subsequently, be re- ceived by the person to whom it was directed, the latter will mark upon the face thereof, " Not accepted," and return it to the sender, who will attach it to the duplicates and the affidavit already on file. Art. 112. Unused forms. — Order forms may not, except as indicated below, be used after the expiration of the period or periods for which the person receiving them registers. Any unused forms in the possession of any person after expiration of the period or periods of registration should be forwarded to the collector by whom they were issued, who will mark them " Canceled." Thej' will thereupon be returned to the former registrant who will keep them on file with the used duplicates for two years. The same procedure should be followed in case of one who, on account of insolvency or otherwise, discontinues business prior to the expiration of the period for which tax has been paid. Exception^ change of ownership. — In case of change of ownership of a business, the successor, if duly registered (see arts. 6 to 15) may use order forms of his predecessor after same have been returned to the collector and overprinted by him with the registry number and class of the successor. Art. 113. Narcotics lost in transit. — Whenever narcotics ordered by a registered dealer on a regular order form are lost in transit, the purchaser shall file, within 30 days from date of invoice, with the collector of his district, an affidavit setting forth the material facts, including the number of the order form, the kind and quantity of eacK kind of narcotics ordered thereon, the name of the manufacturer or dealer from whom ordered, the date of such order, and Avhether or not claim has been made. A copy of this affidavit shall be attached to the duplicate order form on file in the possession of the purchaser and a notation in red ink written across the duplicate order form as follows : " Narcotics on this order form not received ; loss in transit reported to seller (giving date)." In case the lost goods are recovered, a statement to that effect to- gether with date of receipt should be indorsed upon the duplicate order form. Should the goods not be recovered but payment on ac- NARCOTICS. 51 count of the loss thereof be made by the common carrier, notation to that effect should be indorsed upon the duplicate order form. If claim is made after the affidavit is rendered to the collector, the latter should be so notified. In cases where losses in transit occur, the seller is not authorized to make good the loss by duplicating the original shipment on the same original order form. A separate original order form covering- each and every separate shipment of narcotics is required. Art. 114. Miscellaneous. — With respect to use of order forms to cover sales under judicial proceedings, sales of unclaimed freight, sales of drugs for use on board seagoing vessels, etc., see articles 94 to 99. Retailers and Practitioners. PRESCRIPTIONS— GENERAL. Art. 115. Who may issue. — A prescription, in order to be effective in legalizing the transfer and possession of narcotic drugs without the use of an order form (see art. 102), must be issued by a physician, dentist, veterinary surgeon, or other practitioner who has duly regis- tered (see arts, 11, 21, and 30). Art. 116. Who may fill. — A prescription, in order to be effective, must also be filled by a retail dealer registered in class 3 (see arts. 21 and 29), or by a member of class 1 who is qualified to sell drugs at retail (see art. 29). Art. 117. Purpose of issue. — A prescription, in order to be effective in legalizing the possession of unstamped narcotic drugs and elim- inating the necessity for use of order forms, must be issued for legiti- mate medical purposes. An order purporting to be a prescription issued to an addict or habitual user of narcotics, not in the course of professional treatment in an attempted cure of the habit, but for the purpose of providing the user with narcotics sufficient to keep him comfortable b}' maintaining his customary use is not a prescrip- tion within the meaning and intent of the act ; and the persons filling and receiving drugs under such an order, as well as the person issuing it, will be regarded as guilty of violation of the law. (See T. D. 2809, dated Mar. 20, 1919.) Exceptio7is. — Exceptions to this rule may be properly recognized (1) in the treatment of incurable disease, such as cancer, advanced tuberculosis, and other diseases well recognized as coming within this class, where the physician directly in charge of a bona fide patient suffering from such disease prescribes for such patient, in the course of his professional practice and strictly for legiti- mate medical purposes, and in so prescribing, indorses upon the prescription that the drug is dispensed in the treatment of an in- curable disease; and (2) where the attending physician prescribes 52 NARCOTICS. for an aged and infirm addict whose collapse from the withdrawal of the drug would result in death and in which case he indorses upon the prescription that the patient is aged and infirm, giving age, and that the drug is necessary to sustain life. (See M — Mim. 2212, dated July 31, 1919.) EXECUTION OF PRESCRIPTIONS. Art. 118. Responsibility. — The duty of properly preparing pre- scriptions is upon the practitioner, and he is liable to the penalties provided by the act in case of failure to insert the information re- quired by the law. A prescription may be prepared by a secretary or agent for the signature of a practitioner, but the practitioner will be held responsible in case the prescription does not conform in all essential respects to the law and regulations. A corresponding lia- bility rests upon the druggist M^ho fills a prescription not prepared in the form prescribed by law. Art. 119. Manner of execution — Practitioners. — All prescriptions for drugs and preparations not specifically exempt under section 6 of the act (see arts. 139 to 148) must be dated as of and signed on the day when issued and must bear the full name and address of the patient and the name, address, and registry number of the practi- tioner. A phj'sician may sign prescriptions in the same manner as he Avould sign a check or legal document, as, for instance : J. H. Smith, John H. Smith, or John Henry iSmith. Prescriptions must be writ- ten with ink or indelible pencil or typewritten ; if typewritten, they must be signed by the practitioner with ink or indelible pencil. Druggists. — The druggist who fills a prescription will show on the back thereof the signature and address of the person who secures the drug or preparation prescribed and must preserve the prescrip- tion for a period of two years from the date indicated thereon. (See art. 124.) Art. 120. Refilling. — The refilling of a narcotic prescription is pro- hibited except where the preparation covered by the prescription might have lawfully been sold in the first instance without a j)rescription or order form. As to such preparations, see articles 139 to 148. The provisions of T. D. 2766, dated October 22, 1918, allowing refilling of prescriptions for nonexempt preparations are hereby revoked. Art. 121. Partial filling. — The partial filling of prescriptions will not be permitted, under any circumstances. Art. 122. Telephone orders. — It is not permissible to supply nar- cotics pursuant to telephone advice of practitioners without prescrip- tions, whether prescriptions covering such orders are subsequently received or not. Art. 123. Forms to be used. — The Government does not furnish pre- scription forms and tlie order forms which are supplied (see art. NARCOTICS. ^ 53 104) must not be used as prescriptions. Any prescription form may be used provided it is properly executed and shows the required in- formation. (See art. 119.) Art. 124. Filing. — Dealers who fill prescriptions are required to keep them in a separate file for a period of two years in such manner as to be readily accessible to inspection by investigating officers. Art. 125. Labels on containers. — The dealer filling a prescription must affix to the package a label showing the name and registry number of the dealer, the serial number of the prescription, the name and address of the patient, and the name, address, and registry number of the person writing the prescription. DISPENSING BY PRACTITIONERS. Art. 126. Dispensing by pra.ctitioners. — Practitioners are permitted to dispense narcotic drugs to bona fide patients pursuant to the legiti- mate practice of their professions without prescriptions or order forms. (See art. 117.) However, a record of drugs so dispensed must be kept except when the practitioner is in personal attendance upon the patient. A practitioner is not regarded as in personal at- tendance upon a patient within the intent of the statute unless he is in personal attendance upon such patient away from his office. As to the data to be shown by the record, etc., see article 128. RECORDS. Art. 127, Retailers. — Retail dealers are required to keep on file du- plicate copies of order forms Avhereb}^ narcotic drugs and prepa- rations are received, and prescriptions and original order forms whereby narcotic drugs are sold or dispensed. (As to order forms, see arts. 100 to 114; as to prescriptions, see arts. 118 to 125. With respect to orders and prescriptions of exempt officials, see art. 44.) Art. 128. Practitioners, hospitals, etc. — All persons and institutions registered as members of class 4 (practitioners, see art 21), whether they be physicians, dentists, veterinary surgeons, hospitals, sana- toriums, educational institutions having analytical laboratories in con- nection therewith, dispensaries not connected witli a Federal, State, county, or municii:)al institution, welfare bureaus, or charitable insti- tutions of an}^ kind giving treatment in which a narcotic drug is nec- essary, are required to keep a daily record showing the kind and quantity of narcotic drugs or preparations dispensed or administered, the name and address of each pei-son to whom dispensed or adminis- tered, the name and address of the person upon whose authority the narcotic drug or preparation is dispensed or administered, and the ])urposes for Avhich it is dispensed or administered. 54 NARCOTICS. Only such narcotic drugs and preparations as are personally administered by a physician or other practitioner when in attend- ance upon a patient away from his office are exempt from record. As to preserving duplicate copies of order forms whereby narcotic drugs or preparations are received, see article 107. Narcotic drugs or preparations left with a nurse in charge of a patient, to be taken in the absence of the practitioner, must be recorded. (See art. 39.) Narcotics sent or forwarded to chemists for analysis must also be recorded. Art. 129. Form of record. — No special record form will be furnished by the Government for the use of those registered as practitioners. Hospitals and institutions shall keep records in the manner best cal- culated to meet the conditions existing therein. The record that is kept, however, must enable an inspecting officer quickly to ascertain the quantity and kind of narcotic drugs and preparations used daily ; and must contain the information indicated in article 128. The initials of the practitioner giving directions for the administeiing of a narcotic should appear on the patient's record chart, or separate prescription giving the name and address of the patient, the date, and the physician's signature or initials should be filed with the phar- macist in charge of the drug room before the narcotic leaves his charge. If both chart and prescription are used, reference to the prescription must be made on the chart. The record of narcotic drugs dispensed in a hospital or other institution must balance Avith the quantities received as indicated by the duplicate order forms on file. Art. 130. Stock solutions. — Those persons, such as dentists, oculists, aurists, and other specialists engaged in a lawful profession, who ad- minister in their office practice minute quantities of narcotics, in the form of solutions, may keep a record of the date when a stock solu- tion is made or purchased and the date when such stock solution is exhausted. Where pastes or ointments are made or purchased, a record of the date when the container is first opened and the date when its contents are exhausted msLj be kej^t. When such records are made it will not be necessary to keep a record of the name and ad- dress of each patient. STATEMENTS. Sec. 3. That any person who shall be registered in any internal revenue district under the provisions of section one of this Act shall, whenever required so to do by the collector of the district, render to the said collector a true and correct statement or return, verified by affidavit, setting forth the quantity of the aforesaid drugs received by him in said internal revenue district during such ijeriod immediately preceding the demand of the collector, not exceeding three months, as the said collector may fix and determine ; the names of the persons from whom the said drugs were received ; the quantity in each instance received from each of such persons ; and the date when received. NARCOTICS. 65 Art. 131. Collector will require statement whenever he deems it ad- visable. — A collector will require a sworn statement from any regis- tered person in any case where, from the number of order blanks ob- tained, or from the character of the business carried on, he has rea- son to suspect that narcotic drugs are being procured, compounded, or disposed of by any person for illegal purposes, and in any other case in which he thinks it advisable to secure such information. Col- lectors may require such statements from manufacturers of and dealers in exempt preparations (see arts. 139 to 148) whenever they seem desirable. Art. 132. Collector will furnish blank form. — The statements to be furnished in such cases mu&'t be made on Form 680, which will be supplied by collectors of internal revenue, and such statements must be sworn to. TRANSPORTATION. Sec. 4. That it shall be unlawful for any person who shall not have registered and paid the special tax as required by section one of this Act to send, ship, carry, or deliver any of the aforesaid drugs from any State or Territory or the District of Columbia, or any insular posses- sion of the United States, to any person in any other State or Territory or the District of Columbia or any insular possession of the United States : Provided, That nothing contained in this section shall apply to common carriers engaged in transporting the aforesaid drugs, or to any employee acting within the scope of his employment, of any person who shall have registered and paid the special tax as required by sec- tion one of this Act, or to any person who shall deliver any such drug which has been prescribed or dispensed by a physician, dentist, or vet- erinarian requii-ed to register under the terms of this Act, who has been employed to prescribe for the particular patient receiving such drug, or to any United States, State, county, municipal, District, Ter- ritorial, or insular officer or official acting within the scope of his official duties. Art. 133. Transportation. — Interstate shipment of narcotic drugs and ^^reparations (other than the exempt preparations dealt with in arts. 139 to 148) by persons who have not registered and paid special tax as members of classes 1, 2, 3, or 4 (see arts. 6 and 21) is, with cer- tain exceptions, prohibited. Exceptions. — The prohibition does not apply to (1) common car- riers, (2) employees of registered i)ersons, (3) persons delivering drugs prescribed or dispensed by a practitioner to a bona fide patient, and (4) exempt officials. As to employees, see articles 37 and 38. As to prescriptions and dispensing by practitioners, see articles 115 to 126. As to exempt officials, see articles 41 to 48. INSPECTIONS. Sec. 5. That the duplicate order forms and the prescriptions re- quired to be preserved under the provisions of section two of this Act, and the statements or returns filed in the office of the collector of the 56 NARCOTICS. district, under tlie provisions of section tliree of this Act, shall be open to inspection by officers, agents, and employees of the Treasury Depart- ment duly authorized for that purpose ; and such officials of any State or Territory, or of any organized municipality therein, or of the District of Columbia, or any insular possession of the United States, as shall be charged with the enforcement of any law or municipal ordinance regu- lating the sale, prescribing, dispensing, dealing in, or distribution of the aforesaid drugs. Each collector of internal revenue is hereby authorized to furnish, upon written request, certified copies of any of the said statements or returns filed in his office to any of such officials of any State or Territory or organized nmnicipality therein, or the District of Columbia, or any insular possession of the United States, as shall be entitled to inspect the said statements or returns filed in the office of the said collector, upon the payment of a fee of $1 for each one hundred words or fraction thereof in the copy or copies so requested. Any person who shall disclose the information contained in the said statements or returns or in the said duplicate order forms, except as herein expressly provided, and except for the pun^ose of enforcing the provisions of this Ac4, or for the purpose of enforcing any law of any State or Territory or the District of Columbia, or any insular posses- sion of the United States, or ordinance of any organized municipality therein, regulating the sale, prescribing, dispensing, dealing in, or dis- tribution of the aforesaid drugs, shall, on conviction, be fined or im- prisoned as provided by section nine of this Act. And collectors of internal revenue are hereby authorized to furnish upon written request, to any person, a certified copy of the names of any or all persons who may be listetl in their respective collection districts as special tax payers under the provisions of this Act, upon payment of a fee of $1 for each one hundred names or fraction thereof in the copy so requested. Art. 134. Eecords open to inspection. — Duplicate order forms and prescriptions required to be kept on file (see arts. 107, 119, and 124) must be kept so that tliey can be readily- inspected by officers of the Treasury Department of the United States or by authorized officers of the Government of the State, Territory, District of Columbia, organized municipality, or insular possession, in which the person" keeping the records is located. Persons failing to comply with this requirement are liable as indicated by sec. 9 of the statute, and article 153 of the regidations. Art. 135. Procedure by officers. — It will be the duty of collectors, deputy collectors, agents, and other authorized internal revenue offi- cers to visit the premises of all persons, firms, or companies regis- tered under the act, or where they have reason to believe narcotic drugs are stored, and to see that all requirements of the law and the regidations issued under authority thereof are strictly complied with (see sec. 3177, R. S.). They will, when necessary, inspect and check such records, orders, prescriptions, statements, and returns made or received. Any violations of law discovered shall be at once reported to the Commissioner of Internal Revenue. Art. 136. Samples to be taken. — Wlicre unstamped packages sus- pected of containing narcotic drugs or preparations subject to tax NARCOTICS. 57 are found, samples of their contents should be immediately procured, and, after being properly labeled and identified as required by T. D. 1587, forwarded to the Division of Technology, Office of the Com- missioner of Internal Revenue, for analysis. Art. 137. Unnecessary interference prohibited. — Officers will con- duct their investigations in such manner as not to annoy or interfere unnecessarily with the affairs of persons whose businesses are sub- jected to examination. Nevertheless investigations should be careful and thorough, and every reasonable effort to uncover possible viola- tions of law should be made. Art. 138. Improper disclosures. — Any investigating officer who dis- closes information obtained from the records required to be kept under the provisions of this act, except for the purpose of enforcing such act or a State or other statute enacted for the purpose of con- trolling the traffic in narcotic drugs, will incur liability to be fined not more than $2,000 or imprisoned not more than five years or both. (See art. 153.) Any internal revenue officer who makes any unauthorized dis- closure will be dismissed from the service. EXEMPT PREPARATIONS. Sec. 6. That the provisions of this Act shall not be construed to apply to the manufacture, sale, distribution, giving away, dispens- ing, or possession of pi-eparations and remedies which do not contain more than two grains of opium, or more than one-fourth of a grain of morphine, or more than one-eighth of a grain of heroin, or rnore than one grain of codeine, or any salt or derivative of any of them in one fluid ounce, or, if a solid or semisolid preparation, in one avoirdupois ounce ; or to liniments, ointments, or other preparations which are pre- pared for external use, only, except liniments, ointments, and other preparations which contain cocaine or any of its salts or alpha or beta eucaine or any of their salts or any synthetic substitute for them : Provided, That such remedies and preparations are manufactured, sold, distributed, given away, dispensed, or possessed as medicines and not for the purpose of evading the intentions and provisions of this Act: Provided further, That any manufacturer, producer, compounder, or vendor (including dispensing physicians) of the preparations and remedies mentioned in this section shall keep a record of all sales, exchanges, or gifts of such preparations and remedies in such manner as the Conmiissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall direct. Such record shall be pre- served for a period of two years in such a way as to be readily acces- sible to inspection by any officer, agent or employee of the Treasury Department duly authorized for tliat purpose, and the State, Terri- torial, District, municipal, and insular oflicers named in section .5 of this Act, and every such person so possessing or disposing of such preparations and remedies shall register as required in section 1 of this Act and, if he is not paying a tax under this Act, he shall pay a si>ecial tax of $1 for each year, or fractional part thereof, in which he is en- 58 NAKCOTICS. gaged in such occupatiou, to the collector of internal revenue of the district in which he carries on such occupation as pi'ovided in this Act. The provisions of tills Act as amended shall not apply to deco- caiuized coca leaves or preparations made thei'efroni, or to other prepa- rations of coca leaves which do not contain cocaine. Akt. 139.. Registration. — ^ISIanufacturers of and dealers in exempt preparations are required to register as such whether liable to tax in that capacity or not (as to tax liability, see art. 140). The direc- tions with respect to registration contained in articles 6 to 11 and 13 to 15 are applicable to persons required to register as manufacturers of and dealers in exempt preparations, except that persons paying tax as members of classes 1 to 4 inclusive are not required to make an additional remittance on account of the manufacture or sale of exempt preparations. Peddling. — Exempt preparations like other narcotic drugs and preparations may be sold only at or from registered places of busi- ness. (See art. 36.) Art. 140. Tax liability. — Manufacturers of and dealers in exempt preparations are, except as shown below, required to pay a tax of $1 per annum for each tax year during the whole or any part of which business is done. The tax year extends from July 1 to June 30. One who is in business for only a part of a year is, nevertheless, required to pay the full sum of $1. (See art. 18.) Exception. — One who pays any of the other special or occupa- tional taxes (see art. 21) is not also required to pay the tax herein dealt with on account of the manufacture of or dealing in exempt preparations. Art. 141. Scope of the law. — The section of the law last quoted has the effect of conditionally exempting from liability under the other sections of the act persons manufacturing and dealing in certain narcotic preparations or remedies. Such persons are not, however, totally exempt from any and all provisions of the entire act, but are subject to certain requirements laid down in section 6. (See arts. 138 to 149.) In order for the exemption to apply at all (1) the prepara- tion must not contain more than 2 grains of opium or more than one- fourth of a grain of morphine, or more than one-eighth of a grain of heroin, or more than 1 grain of codeine, or any salt or de- rivative of any of them in 1 fluid ounce; or, if a solid or semisolid preparation, in 1 avoirdupois ounce, or must be for external use (see arts. 142 and 143) ; (2) the manufacturer or dealer, as the case may be, must manufacture or deal in the preparation as a medicine and not for the purpose of evading the provisions or intentions of the act; and (3) the person claiming exemption must keep such record of sales, etc., as the Commissioner of Internal Revenue and the Secretary of the Treasury shall direct (see art. 148). NARCOTICS. 59 Art. 142. Exempt preparations — Internal. — The exemption applies only to ready-made preparations and remedies compounded in ac- cordance with the United States Pharmacopoeia, National For- mulary, or other recognized or established formula usually carried in stock by a dealer and sold without a prescrij)tion. The preparation must contain active medicinal drugs other than narcotics in sufficient proportion to confer upon the preparation valuable medicinal quali- ties other than those possessed by the narcotic drugs alone. Simple dilutions of a narcotic drug made- by admixture with inert or nearly inert substances, as, for instance, sugar of milk, or simple solutions of narcotic drugs in water, sirup, dilute alcohol, flavoring matter, etc., are not within the exemption. A preparation, to be exempt, must not contain more than one of the several narcotic alkaloids, salts, or derivatives of opium. A preparation which contains the permitted maximum quantity of any one of the various alkaloids, salts, or de- rivatives, if fortified by the addition of any of the other alkaloids or salts or derivatives, is not within the exemption. Art. 143. Exempt preparations — External. — ^There is no limitation upon the percentage of narcotic drugs external preparations may contain. In order to be within the exemption (see art. 141) a preparation for external use, containing more than the maximum percentage of narcotic drugs specified in article 141 must contain ingredients rendering it unfit for internal administration; in other words, it must be denatured, and the package must be prominently marked to show the contents to be j)oisonous if taken internally. Use for aural, nasal, ocular, rectal, uretln-al, or vaginal j)urposes is not regarded as external use and, therefore, preparations manufac- tured or used for such purposes containing more than the percentages of narcotic drugs indicated in article 141 are not within the exemption. Art. 144. Paregoric. — Camphorated tincture of opium (paregoric) prepared according to the United States Pharmacopoeia standard contains not quite two gi'ains of opium to the fluid ounce and is, therefore, Avithin the exemption. Art. 145. Prescriptions unnecessary. — Preparations or remedies which are within the exemption (see arts. 141 to 144) may be sold with or without prescriptions, and a prescription for such a prepara- tion may be refilled (see art. 120) provided, of course, the prepara- tion is furnished in good faith for medicinal purposes only. The refilling of narcotic ^prescriptions calling for a mixture consisting of an exempt preparation or remedy further diluted by the addi- tion of non-narcotic medicinal agents is likewise permissible. Art. 146. Private formulae. — A mixture containing not more than the exempted percentage of narcotic drugs made up pursuant to a private formula of a physician upon retiuest of the physician that the druggist keep a quantity of the mixture on hand in order that the 60 NARCOTICS. physician may describe it in his prescriptions as his *' special mix- ture " is not a ready-made preparation or remedy compounded in accordance with the " U. S. P.," " N, F.," or other recognized or es- tablished formula (see art. 142) and is therefore not within the exemption. Art. 147. Order forms. — Orders for exempt preparations are not re- quired to be on any particular forms, but an order from a dealer shall not be honored by a manufacturer or other dealer unless it bears the registry number of the dealer giving the order. Where orders for exempt preparations are taken by a traveling salesman the salesman shall ascertain the registry number of the purchaser. The order shall not be filled by the manufacturer or vendor until he is advised what the jjurchaser's registry number is. Art. 148. Records. — Every manufacturer, producer, compounder, or vendor (including dispensing physicians) of exempt preparations must keep a record of all sales, exchanges, gifts, etc., the entries to be made at the time of delivery. Records must be kept whether liability to tax as a manufacturer of or dealer in exempt preparations is in- curred or not. (See art. 140.) This recorcl must show the name, address, and registry number of the dealer to whom the preparation cr remedy is sold, exchanged, or given, the name and quantity of the preparation or remedy, and the date upon which delivery to the purchaser or his agent or the carrier is made. A separate record must also be kept of sales, etc., to persons other than dealers, including sales pursuant to prescription, bearing the signature of the person to whom the preparation or remedy is sold, exchanged, or given, made at the time of delivery, his address, the name and quantity of the preparation or remedy, and the date of delivery. The Government does not furnish blanks for the keeping of these records, but they should be in the following forms : Form f record i U) Be kept hy manufacturers, etc., of, or wholesale dealers in, untaxed narcotic preparations and remedies. Date of sale. Registra- tion No. of person to whom sold. Name of purchaser. Address. Name of preparation cr remedy. Quantity. 1 Form f record to he Jcept b // retail dealers in untaxed narcotic preparations and remedies. Date of sale. Signature of purchaser. Address. Name of preparation. Quantity. NARCOTICS, 61 GENERAL PROVISIONS. Sec. 7. That all laws relating to the assessment, collection, remis- sion, and refimd of internal revenue taxes including section thirty-two hundred and twenty-nine of the Revised Statutes of the United States, so far as applicable to and not inconsistent with the provisions of this Act, are hereby extended and made applicable to the special taxes im- posed by this Act. Art. 149. Compromise. — Section 3229, Revised Statutes, provides in part : The Commissioner of Internal Revenue, with the advice and consent of the Secretary of the Treasury, may compromise any civil or criminal case arising under the internal-revenue laws instead of commencing suit thereon ; and, with the advice and consent of the said Secretary and the recommendation of the Attorney General, he may compromise any such case after a suit thereon has been commenced. Persons guilty of wilful violation of the provisions of the act of December 17, 1914, will not be permitted to compromise their offenses. (See art. 153.) Art. 150, Redemption of stamps. — Authority for the redemption of stamps, under certain circumstances, is conferred by the act of May 12, 1900 (31 Stat., 177), as amended by the act of June 30, 1902 (32 Stat., 506). Unused narcotic stamps may be redeemed through claim executed on Form 46, presented by the owner, or his authorized representa- tive, accompanied by the stamps. Such claim should show that the claimant is the owner of the stamps presented, that they were pur- chased from the Government within two years of the date of the filing of the claim, and that the stamps are unused, explaining any cancellation or appearance of having been used. In case of stamps affixed in error to articles not taxable or in ex- cess to taxable articles, the claim should be accompanied by the stamps, which should be detached in the presence of a deputy col- lector, or, if they can not be detached, a showing of that fact should be made, supported by the deputy collectors certificate evidencing their mutilation, destruction, or obliteration by him. Art. 151, Other provisions. — With respect to other provisions of the Revised Statutes which are applicable, see article 53. UNLAWFUL POSSESSION. Sec. 8. That it shall he unlawful for any person not registered under the provisions of this Act, and who has not paid the spwlal tax provided for by this Act, to have in his possession or under his control any of the aforesaid drugs ; and such possession or control shall be presumptive evidence of a violation of this section, and also of a violation of the provisions of section one of this Act: Provided, That this section shall not apply to any employee of a registered per- 62 NARCOTICS. son, or to a nurse under the supervision of a physician, dentist, or veterinary surgeon registered under this Act, having such possession or control by virtue of his employment or occupation and not on his own account ; or to the possession of any of the aforesaid drugs which has or have been prescribed in good faith by a physician, dentist, or veterinary surgeon registered under this Act ; or to any United States, State, county, municipal. District, Territorial, or in- sular officer or official who has possession of any said drugs, by reason of his official duties, or to a warehouseman holding possession for a person registered and who lias paid the taxes under this Act ; or to common carriers engaged in transporting such drugs : Provided further, That it shall not be necessary to negative any of the aforesaid ex- emptions in any complaint, information, indictment, or other writ or proceeding laid or brought under this Act ; and the burden of proof of any such exemption shall be upon the defendant. Art. 152. References — Possession. — As to possession of unstamped packages containing narcotic drugs, see article 80. Employees. — With respect to employees, see article 38. Nurses. — In regard to nurses, see article 39. Eccempi officials. — As to officials of the Government of the United States, etc., see articles 41 to 48. PUNISHMENT. Sec. 9. That any person who violates or fails to comply with any of the requirements of this Act shall, on conviction, be fined not more than $2,000 or be imprisoned not more than five years, or both, in the discretion of the court. Art. 153. Rigorous enforcement. — Persons who violate the narcotic law or fail to fulfill its requirements in any particular are liable to punishment, the maximum liability being to be fined not more than $2,000 or to be imprisoned for not more than five years, or both. Wilful violation of the internal revenue legislation covering the traf- fic in narcotic drugs will, in no case, be condoned merely because the amount of revenue involved is small. It is desired that revenue of- ficers. United States attorneys, etc., will be more than ordinarily zealous in endeavoring to secure the adequate punishment of persons guilty of such offenses, and that private citizens will cooperate by furnishing information, etc., whenever they can do so. SEIZURES. Section 1008 of the Revenue Act of 1918 : " That all opium, its salts, derivatives, and compounds, and coca leaves, salts, derivatives, and compounds thereof, which may now be under seizure or which may hereafter be seized by the United States Government from any person or persons charged with any violation of the Act of October 1, 1890, as amended by the Acts of Rlarch .3, 1897, February 9. 1909, and January 17, 1914, or the Act of December 17, 1914, shall upon conviction of the person or persons from whom NARCOTICS. 63 seized be confiscated by and forfeited to the United States; and the Secretary is hereby authorized to deliver for medical or scientific pur- poses to any department, bureau, or other agency of the United States Government, upon proper application therefor under such regulation as may be prescribed by the Commissioner, with the approval of the Secretary, any of the drugs so seized, confiscated, and forfeited to the United States. " The provisions of this section shall also apply to any of the aforesaid drugs seized or coming into the possession of the United States in the enforcement of any of the above-mentioned Acts where the owner or owners thereof are unknown. None of the aforesaid drugs coming into possession of the United States under the operation of said Acts, or the provisions of this section, shall be destroyed without certification by a committee appointed by the Commissioner, with the approval of the Secretary, that they are of no value for medical or scientific pui'- poses." Art. 154. Reports. — Each collector and revenue agent is required to submit a report to the Commissioner of Internal Revenue at the close of each month showing the quantity of narcotic drugs coming into his possession during that month, and at the end of each quarter the collector shall ship such of the drugs as have been forfeited to the United States in his district, by express, to the Division of Tech- nology, Office of the Commissioner of Internal Revenue, on a Gov- ernment bill of lading. (See also art. 80.) AUTHORITY FOR REGULATIONS. Section i. * * * The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall make all needful rules and regulations for carrying the provisions of this Act into effect. Art. 155. Promulgation of regulations. — In pursuance of the statute the foregoing regulations are hereby made and promulgated and all rulings inconsistent herewith are hereby revoked. Daniel, C. Roper, Commissioner of Internal Revenue. Approved, November 24, 1919 : Carter Glass, Secretary of the Treasury. APPENDIX. The following list of collection districts, with the address of each of the several collectors of Internal revenue, is furnished for the information of persons registering under the foregoing regulations. In addressing letters to collectors, the title of their office and their post-office address, as given in the list, will be sufficient. All remittances for special taxes or for purchase orders should be in currency, money orders, or certified checks on national or State banks. Ldst of collection Mstricts and addresses of collectors of internal revenue. District. Collector's office. Alabama « Alaska. (See Washington.) Arizona Arkansn s California ( first district ) The counties of Alameda, Alpine, Amador, Butte, Calaveras, Colusa, Contra Costa, Del Norte, Eldorado, Fresno, Glenn, Biunboldt, Inyo, Ivings, Lake, Lassen, Madera, Marin, Mariposa, Menlocino, Merced, Modoc, Mono, Monterey, Napa, Nevada, Placer, Plumas, Sacramento. Srn Benito, San Francisco, San Joaquin, Sen Mateo, Santa Clara, Santc Cruz, Shasta, Sierra, Siskivou, Solano, Sonima, Stanislaus, Sutter, Tehama, Trinity, Tuhre, Touliimne, Yolo, Yuba, and tiie State of Nevada. California (sisth district) The counties of Imperial. Kern, Los An;eles, Orange, Riverside, Sen Ber- n.irdino, San Diejo, San Luis Obispo, Santa Barbara, and Ventura. Colorado Connecticut Delaware District of Columbia (see Maryland) Florida Georgia Hawaii Idaho Illinois (first district) Theeountiesof Boone, Bureau, Carroll, Cook, Dekalb, Dapage, Grundy, Ilenierson, Henry, Jo Daviess, Kane, Kankakee, Kendall, Knox. Lake, La SaJle, Lee, McHenry, Marshall, Mercer, Ogle, Peoria, Putnam, Rhode Island, St.irk, Stephenson, Warren, Whiteside, Will, and Winnebago. Illinois (eighta district) Theeountiesof Adams, Alexander, Bond, Brown, Calhoun, Cass.Champaic.n, Christian, Clark, Clay, Clinton, Coles, Crawford, Cumberland. Dewitt, Do nlas, Edgir, Edwards, Effln'itham, Fayette, Franklin, Ford, Fulton Gallatin, Greene, Hamilton, Hancock, Hardin, Iroquois, Jackson. Jasper, Je.lerson, Jersey, Johnson, Lawrence, Livinjston, Logan, McDonouqh, McLean, Macon, Macoupin, Madison, Marion, Mason. Massac, Menard, Monroe, Mont^omerv, Morgan, Moultrie, Perry, Piatt, Pike, Pope, Pulaski, Randolph, Richland, St. Clair, Saline, Sangamon, Schuyler, Scott, Shelby, Tazewell, Union, Vermilion, Wabash, Washington, WajTie, White, Williamson,-and Woodford. Indiana (sixth district) Iowa (tliird district) Kansas Kent ucky Louisi;ma Maine Maryland (includes District of Columbia, and the counties of Accomac and Northampton of the State of Virginia). Massachusetts Miclu','an ( first distri -t ) The counties of Aleona, Alpenx, Arenac, Bay, Branch, Calhoun, Cheboygan, Clare, CUnton, Crawford, Genesee, Gladwin, Gratiot, Hillsdale, Huron, Ingham, Ios3o, Isabella, Jackson, Lapeer, Lenawee, Livingston. Macomb, Midland, Monroe, Montmorency, Oakland, 0;cmaw, Oscoda, Otsego, Presque Isle, Roscommon, Saginaw, Sanilac, Shiawassee, St.Clair, Tuscola, Washtenaw, and Wayne. Birmingham. Phoenix. Little Rock. San Francisco. Los Angeles. Denver. Hartford. Wilmington. Baltimore. Jacksonville. Atlanta. Honolulu. Boise. Chicago. SpringfieKL Indianapolis. Dubuque. Wichita. Louisville. New Orleans. Augusta. Baltimore. Boston. Detroit. 65 66 NARCOTICS. List of collection districts and addresses of collectors of internal revenue — Con. District. Michigan (fourth district) The counties of Al'jer, Allegan, Antrim, Baraga, Barrv, Benzie, Berrien.Cass, Charlevoix, Chippewa, Delta, Dickinson, Eaton, Emmet, Gogebic, Grand Traverse, Houghton, Ionia, Iron, Kalamazoo, KaUcaska, Kent, Keweenaw, Lake, Leelanau, Luce, Mackinac, Manistee, Marquette, Mason, Mecasta, Mennminee, Missaukee, Montcalm, Mr.skeron, Newaygo, Oceana, Onto- nagon, Osceola, Ottawa, St. Joseph, Schoolcraft, Van Buren, AVexford. Minnesota Mississippi Missouri ( first district) The counties of Adair, Audrain, Bollinger, Boone, Butler, Callaway, Cape Girardeau, Carter, Clark, Crawford, Dent, Dimklin, Franklin, Gasconade, Howard, Iron, Jefferson, Knox, Lewis, Lincoln, Linn, Macon, Madison, Maries, Marion, Mississippi, Montgomery, Monroe, New Madrid, Oregon, Osage, Pemiscot. Perry, Phelps, Pike, Pidaski, Ralls, Randolph, Reynolds, Rinley, St. Charles, St. Francois, Ste. Genevieve, St. Louis, Schuyler, Scot- land, Scott, Shannon, Shelby, Stoddard, Warren, Washington, and WajTie. Missouri (sixth district) The counties of Andrew, Atchison, Barry, Barton, Bates, Benton, Buchanan, Caldwell, Camden, Carroll, Cass, Cedar, Charlton, Christian, Clay, Clinton, Cole, Cooper, Dade, Dallas, Daviess, Dekalb, Douglas, Gen- try, Greene, Grundy, Harrison, Henry, Hickory, Holt, Howell, Jackson, Jasper, Johnson, Laclede, Lafayette, Lawrence, Livingston, McDonald, Mercer, Miller, Moniteau, Morgan, Newton, Nodaway, Ozark, Pettis, Platte, Polk, Putnam, Ray, St. Clair, Saline, Stone, Sullivan, Taney, Texas, Vernon, Webster, Worth, and Wright. Montana Nebraska Nevada. (See First California.) New Hampshire New Jersey (first district) The coimties of Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, Monmouth, Ocean, and Salem. New Jersey (fifth district) The coimties of Bergen, Essex, Hudson, Himterdon, Middlesex, Morris, Passaic, Somerset, Sussex, Union, and Warren. New Mexico New York (first district) The counties of Kings, Nassau, Queens, Riclunond, and Suffolk. New York (second district) The first, second, third, fourth, fifth, sixtli, eighth, ninth, and fifteenth wards of New York City; that portion of the fourteenth ward lying west of the center of Mott Street; that portion of thesLxteenth ward lying south of the center of West Twenty-fourth Street and Governors Island. New York (third district) The seventh, tenth, eleventh, twelfth, thirteenth, seventeenth, eighteenth, nineteenth, twentieth, twenty-first, and twenty-second wards of New York City; that part ofthe fourteenth ward lying east of the center of Mott Street; that part ofthe sixteenth ward lying north ofthe center of West Twenty-fourth Street, and Blackwells, Eandals, and Wards Islands. New York ( fourteenth district) The counties of Albany, Clinton, Columl lia, Dutchess, Essex, Fulton, Greene, Hamilton, Montgoniery, Orange, Putnam, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Sullivan, Ulster, Warren, Washington, and West- chester, and the twenty-third and twenty- fourth wards of New York City. New York (twenty-first district) The coimties of Broome, Cayuga, Clienango, Cortland, Delaware, Franklin, Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, Otsego, St. Lawrence, Schuyler, Seneca, Tioga, Tompkins, and Wayne. New York (twenty-eighth district) The counties of Allegany, Cattaraugus, Chautauqua, Chemung, Erie, Gen- esee, Livingston, Monroe, Niagara, Ontario, Orleans, Steuben, Wyoming, and Yates. North Carolina (fourth district) North Dakota Ohio (first district) The counties of Brown, Butler, Clarke, Clermont, Clinton, Fayette, Greene, Hamilton Highland, Miami, Montgomery, Preble, and Warren. Ohio (tenth district) The counties of Allen, Auglaize, Champaign, Crawford, Darke, Defiance, Erie, Fulton, Hancock, Hardin, Henry, Huron, logan, Lucas, Mercer, Ottawa, Paulding, Putnam, Sandusky, Seneca, Shelby, Van Wert, Wil- liams, Wood, and Wyandot. Ohio (eleventh district) The counties of Adams, Athens, Coshocton, Delaware, Fairfield, Franklin, Gallia, Guernsey, Hocking, Jackson, Knox, Lawrence, Licking, Madison, Marion, Meigs, Morgan^ Morrow, Muskingum, Noljle, Perry, Pickaway, Pike, Ross, Scioto, Union, Vinton, and Washington. Ohio (eighteenth district) The counties of Ashland, Ashtabula, Belmont, Carroll, Columbiana, Cuya- hoga, Geauga, Harrison, Holmes, Jefferson, Lake, Lorain, Mahoning, Medina, Monroe, Portage, Richland, Stark, Summit, Trumbull, Tuscara- was, and Wayne. Collector's oflBce. Grand Rapids. St. Paul. Jackson. St. Louis. Kansas City. Helena. Omaha. Portsmouth. Camden. Newark. Albuquerque. Brooklyn. New York City. New York City. Albany. Syracuso. Buffalo. Raleigh. Fargo. Cincinnati. Toledo. Columbiis. Cleveland. NARCOTICS. 67 List of collection district.f and addresses of collectors of internal revenue — Con. District. Collector's office. Oklahoma. Oregon . Pennsylvania (first district) The counties of Adams, Bedford, Berks, Blair, Bucks, Chester, Cumberland, Dauphin, Delaware, Franklin, Fulton, Himtingdon, Juanita, Lancaster, Lel«non, Lehigh, Mifflin, Montgomery, Perry, Philadelphia, Schuylkill, Snyder, and York. Pennsylvania (twelfth district) The counties of Bradford, Carbon, Center, Clinton, Columbia, Lackawanna, Luzerne, Lycoming, Monroe, Montour^ Northampton, Northumberland, Pike, Potter, Sullivan. Susquehanna, Tioga, Union, Wayne, and Wyoming. Pennsylvania (twcnty-thira district) The counties of Allegheny, Armstrong, Beaver, Butler, Cambria, Cameron, Clarion, Clearfield, Crawford, Elk, Erie, Fayette, Forest, Greene, Indiana, Jefferson, Lawrence, McKean, Mercer, Somerset, Venango, Warren, Wash- ington, and Westmoreland. Rhode Island South Carolina South Dakota Tennessee Texas (third district) Utah Vermont Virginia i (second district) The counties of Amelia, Appomattox, Brimswick, Buckingham, Caroline, Charles City, Chesterfield, Cumberland, Dinwiddle, Elizabeth City, Essex, Fluvanna, Gloucester^ Gochland, Greenville, Hanover, Henrico, Isle of Wight, James City, Kmg and Queen, King George, King William, Lancas- ter, Louisa, Lunenburg, Mathews, Middlesex, Nansemond, New Kent, Norfolk, Northumberland, Nottoway, Powhatan, Prince Edward, Prince George, Princess Anne, Richmond, Stafford, Southampton, Spottsylvania, Surry, Sussex, Warwick, V/estmoreland, and York. Virginia (sixth district ) The counties of Albermarle, Alexandria, Alleghany, Amherst, Agusta, Bath, Bedford, Bland, Botetourt, Buchanan, Campbell, Carroll, Charlotte, Clarke, Craig, Culpeper, Dickenson, Fairfax, Fauquier. Floyd, Franklin, Frederick, Giles, Grayson, Greene, Halifax, Henry, Highland, Lee, Lou- doim, Madison, Mecklenburg, Montgomery, Nelson, Orange, Page, Patrick, Pittsylvania, Prince William Pulaski, Rappahannock, Roanoke, Rock- bridge, Rockingham, Russell, Scott, Shenandoah, Smyth, Tazewell, Warren, Washington, Wise, and Wythe. Washington (includes Alaska) West Virginia -. Wisconsin (second district) Wyoming Oklahoma. Portland. Philadelphia. Scranton. Pittsburgh. Providence. Columbia. Aberdeen. Nashville. Austin. Salt Lake City. Burlington. Richmond. Roanoke. Tacoma. Parkorsburg. Madison. Cheyenne. ' The counties of Accomac and Northampton are included in the Maryland district. INDEX. A. Article. Acknowledgment in lieu of oath 10 Addicts, aged and inlirm 117 Addiction, prescriptions for 117 Address, change of 59,60,61 Affidavit : Application for registration 11 Penalty for false 11 Ampoules, stamping of 68 Analysis, samples to be forwarded , 136 Application : Additional form, change in location 59, 6C 61 Filing according to registry number 14 Form 678 6,53 Permanent registry number for renewal applications 13 Recording by collector on Record 10 14, 57 Remittance accompanying ,, 6 Separate application for each class 15 When tax is less than $10 10 Aqueous solutions, sale by retail dealer 25 Attendance (personal), definition of 126 Attorney, power of, authorizing signing of order forms 108 Authority for regulations , 155 B. Branches of business, separate tax 22,23,31 Business name, registration 9 Businesses, several of same kind, separate tax 23 O. Cancellation of stamps 79 •Certificates issued in lieu of stamps lost or destroyed 63 Change : Location of business 60,61 Ownership " 19^ 58 Chemists : Order forms in procuriaig narcotics 101 Records required of 93 Tax liability 27 Claim for tax erroneously paid 150 Classification of persons subject to tax 21 Collectors : , Examination and forwarding of reports 91 Filing duplicate inventory 12 Furnishing application forms 6 69 70 INDEX. Collectors — Coutinued. Article. Furnishing blank Form 680 132 Furnishing certificate of exemption to Governirfent officials 43 Imprinting name, address, registry, and class numbers on order forms- 104 Imprinting name, address, registry, and class numbers on special tax stamps 55 Keeping account of order forms sold 100 Monthly report of drugs seized 154 Notification of succession of business, Classes 1 and 2 92 Preservation of requisitions 71 Record of change in location-- 60, Gl Record of stamps issued 71 Requiring statements covering three months period 131 Compounder : Stamping drugs 65 Subject to tax as manufacturer 25 Compromise, wilful violations 149 Containers : Labeling 75 Loss or destruction i)5 Manner of aflixing stamps 67, 70 Marking in conformity with Food and Drugs Act 75 Narcotic content 75 Coupon stamps: (a) for fraction of year 55 (&) for delinquent taxpayers 55 Coupon and sheet stamps 55 Court sales 97 Credentials of exempt officials 42 Dealers and practitioners 29 Death of person paying special tax 58 Definitions : Attendance -(personal) 126 Chemists i 27 Exempt preparations and remedies 141 Im]X)rter , 24 Manufacturer and compounder 25 " Person " 2, 52 Personal attendance 126 Producers 26 Retail dealer 29 " Special tax " 2 " Stamp tax " 2 Wholesale dealer ^ 28 Delinquency 54 Disclosure of information obtained by investigators 138 Disposition : Drugs upon discharge of nurse 39 Narcotics, report of 83,88 Documentary stamps, overprinting of 70 Drugs : Analysis 136 Dispensed, recording by practitioner 126 Exported, subject to tax 74 INDEX. 71 Drugs — Continued. Article. Furnishing to exempt officials upon certificate 43 Furnishing to unauthorized persons by exempt officials 47 Imported, subject to tax 64 Importer, manufacturer, etc., monthly returns 81 to 8.5 inc. Interstate shipment 133 Loss in transit 95, 113 Lost or destroj-ed 95 Manner of keeping 94 New derivatives must be .stamped 72 Possession of nursf^ 39 Preparations and drugs not for satisfaction of drug habit 117 Procedure in case of theft 96 Public .sale ^ 98 Reraanufacture ; new tax liability 72 Segregation and safe keeping 94 Seizure and forfeiture SO, 154 Selling in court 97 Subject to Food and Drugs Act 75 Supplying of, to ocean-bound ve.s.sels 99 Transfers from one department to another 90 Traveling .salesmen, sale through ' 40 Unstami>ed, .subject to seizure 80 Withdrawal from customs 100 E Employer, when respon.dble for acts of employee 37 Enforcement of the law 153 Entire narcotic preparation taxable 66 Evidence of exemption 42 Execution and filing of order forms 107 Exempt officials : Caution required i 47 Engaging in private business 41 Exemption must be evidenced 42 Orders, preparation and filing of 45 Prescriptions written by 44 Procurement of drug 43 Records 46 Special tax liability 48 Stamping drugs 41, 77 Exempt preparations : Definition , 76 External and internal administration 142, 143 Manner of ordering 147 Orders taken by traveling salesmen 147 Peddlers of 139 Records of ' 148 Registry number of dealer 147 Selling of, without prescription 145 Statement of transactions in 131 Tax liability of manufacturers and dealers 140 Taxability 141 Ex^anption, Government officials 77 '72 INDEX. Article. Explanatory 1 Exported drugs 74 Express package unclaimed 98 External preparations 143 F. Failure to register and pay tax '. 51 Failure to register within required time 54 Files : Applications, filing numerically 14 Hospital records 129 Order forms 107 Improperly written and mutilated ^_ 111 Inspection by Treasury officers 134 Original inventory kept by maker 12 Prescriptions 124 Prescriptions filed separately 119 Records, exempt preparations 148 Pertaining to analytical work 93 . Firm, authority of member to sign order forms 108 Fixed place of business necessary for registrant 36 Forfeitures 154 Unstamped drugs SO Freight packages, unclaimed 98 G. General provisions of law applicable 53 Government institutions, when exempt 49 Government officials: Exempt from payment of tax 77 Exempt from registration 16 H. Hospitals: Pvecords of 129 When exempt from payment of tax 49 I. Imported narcotic drugs taxable 64 Importer ; Payment of tax 65 Stamping drugs before removal from custom's custody 69 When liable to special tax 24 When not liable to additional tax 24 Who is also manufacturer 24 Incurable disease 117 Individual container : (a) Unit of tax : 68 (&) Ampoules 68 Inspection of records 134 Institutions 35 Exemption from payment of tax 49 Practitioner 30 Internal administration 142 INDEX. 73 Article. Interual revenue laws applicable 53 Interstate shipments prohibited ^^ 133 Inventory, annual 12 Form 713 obtained from collector 12 Investigation, confidential in nature 138 Registered persons 135 Unnecessary interference in making 137 Issue and sale of order forms 104 Items entered on order forms 109 Itinerant vendors 3g L. Labels on containers (prescriptions) 125 Law, purpose of 3 Liability : Classes of persons liable 21 Failure to register and pay tax 51 More than one tax 15 List of names of registered persons 57 Location, change in 60,61 Losses, by accident 95 Lost or destroyed order forms 111 M. Manner of preparing and filing prescriptions 119 Manufacturer : Definition of 25 Disposition of drugs 83 Exempt preparations 25 General 81 Production for sale 25 Receipts of drugs 82 Returns 81, 92 Selling ovpn product 29 Stamp tax, on account of 64 Stamping drugs 65 Summary 84 When liable as a retail dealer 29 Measure of tax 18 More than one place or class of business 15 Narcotic drugs : Dispensed by practitioners 126 Dispensed from original stamped packages 29 Found in possession of nurse 39 Lost in transit 95 Order forms, requirement 100 New registrants 7 Nurses : Narcotics in possession of 39 Registration, not allowed 39 O. Oath, when required 10 Occupations, several different 22 74 INDEX. Article. Ocean-bound vessels, narcotics supplied for 99 Offices 32 Officials : Certificate for exemption of 42 Exempt for official business only 41 Exempt from registration ^ 41 Exempt, not required to stamp drugs 41 One registry number covering several classes, same location 15 Order forms: Additional forms in case one is not sufficient 107 Analytical chemists' use of 101 By whom procurable 103 Certificate in lieu of . 43 Change in ownership 112 Execution and filing 107 Exempt preparations 147 Improperly written or mutilated 111 Issue and sale of 104 Lost or destroyed 111 Method of entering items on 109 New form for goods lost in transit 113 Ocean-bound vessels 99 Original and duplicate executed simultaneously 107 Partial filling of 110 Power of attorney on 108 Purpose of 100 Requisition for, on Form 679 104 Signing 108 Unused 112 Use of, once only 110 Used during registration period only 112 When not required 112 Orders, imaccepted 110 Original inventory kept by maker 12 Ownership : Business, change in 19 Information as to 9 P. Package, change of, tax liability 26 Package, creator of new 73 Paregoric, status of 144 Partial filling of prescriptions ., 121 Partners separately engaged 34 Partnerships 34 Peddlers of exempt preparations , 139 Penalty 153 Failure to notify of change in location 62 Failure to register or render returns 153 Permanent registry number of all renewal applications 13 Person, definition of 2 Persons who may register 4 Personal signature on application for registration 8 INDEX. 75 Article. Posting of special tax stamp 56 Power of attorney on order forms 108 Practitioner : Definition 30 Liable to tax as dealer 29 Personal attendance defined 126 Record of drugs dispensed 128 Record of stocli solution dispensed 130 Separate registry number if qualified in another class 15 Preparations and remedies, when exempt 142 Prescriptions : Addiction 117 Aged and infirm addicts 117 Exempt oflicials 44 Exempt preparations 145 Form of 123 Incurable disease 117 Labeling drugs secui'ed on 125 Manner of execution 119 Manner of preparing and filing 119 Partial filling of 121 Responsibility for properly preparing 118 Separate file 124 Signature on back 119 Telephone orders 122 Who may fill 116 Who may issue 115 Principals 3!7 Private formulae not exempt under Section 6 146 Producers : Definition 26 Liability to tax 26 Stamping drugs 65 Public Health Service order forms required 99 Punishment 153 Purpose of law 3 Q. Qualification, evidence of 11 Quantity, aqueous solution to be furnished by retailers 25 Stock solutions, records 130 R. Railroad companies under Federal control 50 Receipts 82 Records : Applications, card Record 10 14 Drugs dispensed 126 Stolen 96 Used for analytical work 93 Exempt officials 46 Exempt preparations sold . 148 76 INDEX. Eecords — Continued. Article Hospitals 12» Insi>ec'ti<)n 134 Monthly returns 81 Narcotics used in institutions 129 Retail dealers , , 127 Stamps issued 71 Stock solutions dispensed 130 Redemption of stamps 150 Refilling narcotic prescriptions 120 Registered persons : Class 1, cancel stamps 79 Class 1, secure stamps on Requisition Form 78G 71 Class 1 and 2, monthly returns of drugs 81 Class 5, records of exempt preparations sold 148 Employees of 38 Investigation of 135 Registration : Annually on or before July 1 7 Application for ^ 6 Branches 31 Each branch of firm or corporation 15 Each class and place of business 4 Government officials, exempt from 16 Institutions (hospitals, etc.) 35 Manufacturers of and dealers in exempt preparations 139 Offices, when necessary 32 Warehouses 33 Who required 5 Registry nunfbers: Issuance serially in each district 13 Requisition form 104 Special tax stamps 55 Regulations : Arrangement of 20 Authority for 155 Method of 20 Remanufacture "2 Removal of business : Notice to collector 59 Penalty for failure to record 62 To another collection district 61 To another place in same district 60 Repacker, as producer registers in Class 1 26 Reports : Drugs stolen 96 Examination and forwarding by collectors 154 Requisitions : Order forms on Form 679 104 Order forms, signature on ^ 106 Stamps on Form 786 71 Reregistration, annually before July 1 7 Retail dealers : Amount of aqueous solution furnished by 25 Definition 29 f INDEX. 77 Retail dealers — Continued. Article. Records 127 Signature of per.son receiving drugs 119 Supplying solutions for office practice 78 Returns, monthly 81 S. Sale.smen, traveling, soliciting orders 40 Samples : Analysis, recording 128 Forwarded for analysis 136 Seizure and forfeiture of tinstamped package SO Seizures, shipment to Divi.sion of Technology 154 Separate application for each class 15 Separate registry number as practitioner 15 Sheet .stamp : (o) For Class 1 55 (6) For full year 55 Signature: Application for registration 8 Form 679 - 106 Order forms lOS Special tax : Definition 2 Fraction of year 18 Liability of each branch of firm 31 Manufacturers of and dealers in exempt preparations 140 Payment a Rates 21 Separate returns for each of several classes 15 Special tax stamp 55 Certificate in lieu of 63 Issuance for each class 1 22 Posting in con.spicuous place 56 Stamp tax : 2sarcotics importetl and manufactured 64 Rate 66 When payable 69 Stamps : Account 85 Affixed by whom 65 Affixed in error 150 Affixed to every individual bottle, etc 67 Cancellation 79 Furnished to Class 1 registrants only 71 Manner of attaching 70 One strip stamp necessary on each package 67,70 Overprinted documentary 70 Rate 66 Redemption 150 Requisition on Form 786 71 Sizes and denominations 70 State laws, qualified under 11 Statement covering three months' period 131 78 INDEX. Stock solution: Article. Records, dispensing minute quantities 130 Selling of 130 Strip stamps : Combined with documentary stamps 70 One necessary on each package 67, 70 Required denominations furnished later 70 Successors, registering of necessary data 58,92 T. Tax: Application to entire narcotic preparation 66 Exported drugs 54 Imported drugs 53 Measure 66 Payment 17 Separate classes of business 21 Taxpayers, list of 57 Telephone orders, prescriptions 122 Time : Payment of tax 69 Registration 7 Transactions, report of 81 to 92 Transfer : Drugs from one department to another 90 Special tax stamp 58 to 61 U. Unaccepted orders 110 Unclaimed freight and express packages 98 Unit of tax 68 V. Violation of section 8176, Revised Statutes 62 W. Warehouses 33 Wholesale dealei's : Definition 28 Disposition of drugs 88 Receipts of drugs 87 Summary 89 When liable as manufacturer 28 Withdrawal, drugs from customs custody 100 Stamps to be attached before-- 69 o LAW LIBRARY UNIVERSITY OF CALIF©RNU LOS ANGELES ; GAYLAMOUNT J PAMPHLET BINDER Manufactured by » '^^ GAYLORD BROS. Inc. • I Syracuse, N.Y. , I St-^ckton, Calif. > U"t': > :H>^l^