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 AN ACT 
 
 TO PROVIDE REVENUE TO DEFRAY WAR EXPENSES, 
 AND FOR OTHER PURPOSES. 
 
 CONTENTS OF THE ACT BY TITLES. 
 
 Page 
 
 Title I. War Income Tax. 7 
 
 Title II. War Excess Profits Tax. 10 
 
 Title III. War Tax on Beverages. 18 
 
 Title IV. War Tax on Cigars, Tobacco, and Manufactures Thereof .... 24 
 
 Title V. War Tax on Facilities Furnished by Public Utilities and In¬ 
 surance. 26 
 
 Title VI. War Excise Taxes. 29 
 
 Title VII. War Tax on Admissions and Dues. 32 
 
 Title VIII. War Stamp Taxes. 34 
 
 Title IX. War Estate Tax. 40 
 
 Title X. Administrative Provisions. 41 
 
 Title XI. Postal Rates. 44 
 
 Title XII. Income Tax Amendments. 46 
 
 Title XIII. General Provisions. 58 
 
 i 
 
 
 BRIEF SUMMARY OF TITLE CONTENTS. 
 TITLE I.—WAR INCOME TAX. 
 
 Section 1. War “Normal Tax” on Citizen and Resident Individuals. 7 
 
 Section 2. War “Additional Tax” on Individuals. 7 
 
 Section 3. Computation, Assessment and Collection of War Income Taxes 
 on Individuals, Including a Certain Deduction at the 
 
 Source Provision. 8 
 
 Section 4. War Income Tax on Corporations. 9 
 
 Section 5. War Income Tax Not Applicable to Porto Rico and the Phil¬ 
 ippine Islands. 9 
 
 TITLE II.—WAR EXCESS PROFITS TAX. 
 
 Section 200. Terms Defined. 10 
 
 Section 201. Tax Liability and Tax Rates. 11 
 
 Section 202. Net Incomes of Less than $3,000 are Exempt in Case of For¬ 
 eign Corporations or Partnerships or Non-resident Alien 
 
 Individuals. 12 
 
 Section 203. How Excess War Profits are Determined—In General. 12 
 
 Section 204. How Excess Profits are Determined if Taxpayer was Not in 
 
 Business in Prewar Period. 12 
 
 Section 205. How Excess Profits are Determined if No Prewar Income or 
 if Percentage of Net Income on Invested Capital Was 
 
 Low, by Comparison. 13 
 
 Section 206. How Net Income for the Prewar Period and for the Tax¬ 
 able Year is to be Ascertained. 14 
 
 Section 207. “Invested Capital” Defined. 14 
 
 Section 208. Reorganizations, Consolidations, or Changes of Ownerships 
 
 After March 3, 1917.. 16 
 
 Section 209. Trades or Businesses Having no or Merely Nominal Capital. . 16 
 
 Section 210. When Secretary of Treasury is Unable to Determine Satis¬ 
 factorily, Invested Capital. 16 
 
 Section 211. Returns by Partnerships.. 17 
 
 3 
 
 
Section 212. r General Administrative, etc., Provisions of Law are Applicable 
 
 to this Title. 17 
 
 Section 213. Commissioner of Internal Revenue to make Necessary Regu¬ 
 lations. 17 
 
 Section 214. Limitation of Munition Manufacturer’s Tax Act of Septem¬ 
 ber 8, 1916, rate thereof reduced, and Repeal of Excess 
 Profits Tax Act of March 3, 1917. 17 
 
 TITLE III.—WAR TAX ON BEVERAGES. 
 
 Section 300-306. Distilled Spirits. 18 
 
 Section 307-308. Beer and other Fermented Liquors. 22 
 
 Section 309-310. Still Wines, Cordials, Champagnes, Sparkling Wines, etc. 23 
 
 Section 311-312. Grape Brandy or Wine Spirits. 23 
 
 Section 313. Sirups and Extracts Used in Production of Soft Drinks, 
 
 Soft Drinks and Natural Mineral Water. 23 
 
 Section 314. Returns by Manufacturer, Bottler, Importer, etc., of 
 
 Sirups, Soft Drinks and Natural Mineral Waters.... 24 
 Section 315. Carbonic Acid Gas in Drums. 24 
 
 TITLE IV. WAR TAX ON CIGARS, TOBACCO AND MANUFACTURES 
 
 THEREOF. 
 
 Section 400. Cigars and Cigarettes. 24 
 
 Section 401. Tobacco and Snuff. 25 
 
 Section 402. Effective Date of Above. 25 
 
 Section 403. Cigars, Cigarettes, Tobacco and Snuff in Stock Bearing Tax- 
 paid Stamps, Removed from Factory, etc., Before General 
 
 Effective Date. 26 
 
 Section 404. Cigarette Papers. 26 
 
 TITLE V. WAR TAX ON FACILITIES FURNISHED BY PUBLIC UTILITIES 
 
 AND INSURANCE. 
 
 Section 500. 
 
 Section 501. 
 
 Section 502. 
 Section 503. 
 
 Section 504. 
 Section 505. 
 
 (a) Tax on Freight Shipments. 
 
 (b) Tax on Express Shipments. 
 
 (c) Tax on Transportation of Persons and on Seats, Berths, 
 
 and Staterooms. 
 
 (d) Tax on Transportation of Oil by Pipe Line. 
 
 (e) Tax on Telephone and Telegraph Messages. 
 
 Tax Paid Generally by the Payer of the Service Rendered and 
 
 Exemptions. 
 
 The United States and the States are Exempt. 
 
 Collection of Above Taxes and Payment Thereof to the 
 
 Government. 
 
 Tax on the Issuance of Insurance Policies. 
 
 Collection of the Insurance Policy Tax. 
 
 26 
 
 26 
 
 27 
 
 27 
 
 27 
 
 28 
 
 28 
 
 29 
 
 TITLE VI.—WAR EXCISE TAXES. 
 
 Section 600. fa) Automobiles and Motor Cycles. 29 
 
 (b) Piano Players, Talking Machines, Records, etc. 30 
 
 (c-d)Moving Picture Films.*. 30 
 
 (e) Jewelry. 30 
 
 (f) Sporting Goods, Games, etc. 30 
 
 (g) Perfumes, Cosmetics and other Toilet Articles. 30 
 
 (h) Proprietary Medicines. 30 
 
 (i) Chewing Gum. 31 
 
 (j) Cameras. 31 
 
 Section 601. Returns and Payment of Tax. 31 
 
 Section 602. Tax on .Articles in Hands of Certain Retailers, etc. 31 
 
 Section 603. Boats not used exclusively for Trade or for National Defense 31 
 
 4 
 
TITLE VII.—WAR TAX ON ADMISSIONS AND DUES. 
 
 Page 
 
 Section 700. Tax Liability and Rates (Admissions). 32 
 
 Section 701. Tax Liability and Rates (Dues). 33 
 
 Section 702. Returns and Payment of Taxes. 33 
 
 TITLE VIII.—WAR STAMP TAXES. 
 
 Section 800. In Effect December 1, 1917... 34 
 
 Section 801. United States, State, Municipal and Foreign Government 
 
 Bonds and other Instruments Exempt. 34 
 
 Section 802. Penalty for Failure to Pay Tax and for Failure to Cancel 
 
 Stamps. 34 
 
 Section 803. Penalty for Fraud in Connection with Stamps. 35 
 
 Section 804. Cancellation of Stamps. 35 
 
 Section 805. Preparation, Distribution and Affixing of Stamps. 35 
 
 Section 806. Stamps to be on Sale at Post Offices. 36 
 
 Section 807. Stamps to be on Sale at United States Depositaries. 36 
 
 Schedule A.—Stamp Taxes. 
 
 1. Bonds of Indebtedness. 36 
 
 2. Indemnity and Surety Bonds. 37 
 
 3. Original Issue of Stock. 37 
 
 4. Sales or Transfers of Stock. 37 
 
 5. Sales of Produce on Exchanges. 38 
 
 6. Promissory Notes and Post-Dated Checks. 39 
 
 7. Conveyances. 39 
 
 8. Custom House Entries. 39 
 
 9. Custom Bonded Warehouse Withdrawal Entries. 39 
 
 10. Passage Tickets. 39 
 
 11. Proxies. 39 
 
 12. Powers of Attorney. 39 
 
 13. Playing Cards. 40 
 
 14. Parcel Post Packages. 40 
 
 TITLE IX—WAR ESTATE TAX. 
 
 Section 900. War Estate Tax Rates. 40 
 
 Section 901. Exemption of Estates of Soldiers and Sailors in Present War. 41 
 
 TITLE X.—ADMINISTRATIVE PROVISIONS. 
 
 Section 1000. Articles Purchased from or Sold to Virgin Islands. 41 
 
 Section 1001. General Administrative Provisions of Law Extended to this 
 
 Act. 41 
 
 Section 1002. Return and Payment of Tax on Articles or Commodities 
 
 Already Taxed by Existing Law. 41 
 
 Section 1003. Collection of Tax when Method of Collection is not Speci¬ 
 fically Provided. 42 
 
 Section 1004. Penalty for Failure to Make Return, for False Return, for 
 Evasion of Tax or for Failure to Pay over Tax, when 
 
 Penalty is not otherwise Specifically Provided. 42 
 
 Section 1005. Commissioner of Internal Revenue to make Rules and Regu¬ 
 lations. 42 
 
 Section 1006. Use of Old Unissued and Issued License Stamps. 42 
 
 Section 1007. Vendee Rather than Vendor pays Tax under Certain Contract 
 
 Conditions. 42 
 
 Section 1008. Taxes Involving Fraction of Cent. 43 
 
 Section 1009. Advance Payment of Income and Excess Profits Taxes. 43 
 
 Seccion 1010. Treasury Certificates of Indebtedness and Uncertified Checks 
 
 Accepted in Payment of Income and Excess Profits Taxes. 43 
 
 TITLE XL—POSTAL RATES. 
 
 Section 1100. First Class Postal Rates. Letters Written by Soldiers. 44 
 
 Sections 1101-1106. Second Class Postal Rates. 44 
 
 5 
 
Page 
 
 Section 1107. Payment into Treasury by Postmaster-General. 46 
 
 Sections 1108-1109. Postmasters in Military Service. 46 
 
 Section 1110. Ethyl Alcohol for Scientific, etc., Purposes, and Wines for 
 
 Sacramental Uses. 46 
 
 TITLE XII.—INCOME TAX AMENDMENTS. 
 
 Section 1200. Dividends Received by Individuals (See “Sec. 31”—page 57) 46 
 
 Exempt Income—Interest on Government Bonds.... 47 
 Section 1201. Deductions Allowed to Citizen or Resident Individuals 
 
 (Interest and Taxes). 47 
 
 Gifts by Citizen and Resident Individuals to Charitable, 
 
 etc., Organizations Deductible to Certain Extent. 48 
 
 Section 1202. Deductions Allowed to Non-Resident Alien Individuals 
 
 (Interest and Taxes). 48 
 
 Non-resident Alien to receive benefit of deductions and 
 
 credits only by filing return. 48 
 
 Section 1203. Specific Exemption Restricted to Citizen or Resident Indi¬ 
 viduals and their estates; Allowance for Dependent 
 
 Children. 49 
 
 Section 1204. Partnerships May Fix Own Calendar Year and if Tax Rates 
 for Calendar Years Have Changed, Members Apportion 
 Distributive Amount and Pay Tax on Portions at 
 
 Respective Rates. 50 
 
 Provisions for List Returns by the Source Repealed. 50 
 
 Section 1205. Withholding at the Source Provisions Amended to Apply 
 to Non-resident Aliens Only, except as to interest 
 
 on tax-free covenant, etc., obligations. 50 
 
 License still Required for Collection of Foreign Items. 51 
 
 Section 1206. Dividends Received by Corporations (See “Sec. 31”— 
 
 page 57.). ; . 52 
 
 Tax on Undistributed Profits of Corporations. 52 
 
 Section 1207. Deductions Allowed to Corporations (Interest and Taxes)... 53 
 Section 1208. Provisions relative to Deduction of Tax on Interest on 
 Domestic Corporate Obligations Payable to Non¬ 
 resident Alien Firms, Corporations, etc., Applicable to 
 
 “Tax” Rather Than to “Income”. 55 
 
 Section 1209. Penalties for Failure to Pay Tax, to Return Information or 
 
 for False Information at the Source. 55 
 
 Section 1210. Special Returns by Corporations to Show Tax Years in which 
 
 Dividends were Earned and Applicable Amounts. 55 
 
 Section 1211. (Sec. 27) Brokers to Supply Information regarding Cus¬ 
 tomers; Names, Profits, Losses, etc. 56 
 
 (Sec. 28) Information at the Source. 56 
 
 (Sec. 29) Excess Profits Tax a credit for income tax. 57 
 
 (Sec. 30) Foreign Government Investments in the United 
 
 States in Domestic Securities. 57 
 
 (Sec. 31) Definition and Taxable Status of “Dividends”. . 57 
 
 (Sec. 32) Premiums on Insurance of Officers, etc., for 
 
 Benefit of Company or Partnership Not Deductible... 58 
 Section 1212. Amounts Withheld at Source in 1917 to be Released and Paid 
 Over to Citizen and Resident Individuals, Except the 
 Tax-free Covenant Cases. 58 
 
 Section 1009. Advance Payment of Taxes. 43 
 
 Section 1010. United States Treasury Certificates of Indebtedness and 
 
 Uncertified Checks Received in Payment of Taxes. 43 
 
 TITLE XIII.—GENERAL PROVISIONS. 
 
 Section 1300. Invalidating Clause. 58 
 
 Section 1301. Title I of Revenue Act of March 3, 1917, Repealed. 58 
 
 Section 1302. General Effective Date of Act. 58 
 
 6 
 
WAR REVENUE ACT OF 1917 
 
 AN ACT 
 
 To provide revenue to defray war expenses, and for other purposes. 
 
 Be it enacted by the Senate and House of Representatives of the 
 United States of America in Congress assembled, 
 
 TITLE I. War Income Tax. 
 
 Section 1. That in addition to the normal tax imposed by 
 subdivision {a) of section one of the Act entitled “An Act to 
 increase the revenue, and for other purposes,” approved September 
 eighth, nineteen hundred and sixteen, there shall be levied, assessed, 
 collected, and paid a like normal tax of two per centum upon 
 the income of every individual, a citizen or resident of the United 
 States, received in the calendar year nineteen hundred and seven¬ 
 teen and every calendar year thereafter. 
 
 Sec. 2. That in addition to the additional tax imposed by 
 subdivision ( b ) of section one of such Act of September eighth, 
 nineteen hundred and sixteen, there shall be levied, assessed, 
 collected, and paid a like additional tax upon the income of every 
 individual received in the calendar year nineteen hundred and 
 seventeen and every calendar year thereafter, as follows: 
 
 One per centum per annum upon the amount by which the total 
 net income exceeds $5,000 and does not exceed $7,500; 
 
 Two per centum per annum upon the amount by which the 
 total net income exceeds $7,500 and does not exceed $10,000; 
 
 Three per centum per annum upon the amount by which the 
 total net income exceeds $10,000 and does not exceed $12,500; 
 
 Four per centum per annum upon the amount by which the 
 total net income exceeds $12,500 and does not exceed $15,000; 
 
 7 
 
Five per centum per annum upon the amount by which the total 
 net income exceeds $15,000 and does not exceed $20,000; 
 
 Seven per centum per annum upon the amount by which the total 
 net income exceeds $20,000 and does not exceed $40,000; 
 
 Ten per centum per annum upon the amount by which the total 
 net income exceeds $40,000 and does not exceed $60,000; 
 
 Fourteen per centum per annum upon the amount by which the 
 total net income exceeds $60,000 and does not exceed $80,000; 
 
 Eighteen per centum per annum upon the amount by which the 
 total net income exceeds $80,000 and does not exceed $100,000; 
 
 Twenty-two per centum per annum upon the amount by which 
 the total net income exceeds $100,000 and does not exceed $150,000; 
 
 Twenty-five per centum per annum upon the amount by which 
 the total net income exceeds $150,000 and does not exceed $200,000; 
 
 Thirty per centum per annum upon the amount by which the 
 total net income exceeds $200,000 and does not exceed $250,000; 
 
 Thirty-four per centum per annum upon the amount by which 
 the total net income exceeds $250,000 and does not exceed $300,000; 
 
 Thirty-seven per centum per annum upon the amount by which 
 the total net income exceeds $300,000 and does not exceed $500,000; 
 
 Forty per centum per annum upon the amount by which the 
 total net income exceeds $500,000 and does not exceed $750,000; 
 
 Forty-five per centum per annum upon the amount by which the 
 total net income exceeds $750,000 and does not exceed $1,000,000; 
 
 Fifty per centum per annum upon the amount by which the total 
 net income exceeds $1,000,000. 
 
 Sec. 3. That the taxes imposed by sections one and two of 
 this Act shall be computed, levied, assessed, collected, and paid 
 upon the same basis and in the same manner as the similar taxes 
 imposed by section one of such Act of September eighth, nine¬ 
 teen hundred and sixteen, except that in the case of the tax imposed 
 by section one of this Act ( a ) the exemptions of $3,000 and $4,000 
 provided in section seven of such Act of September eighth, nineteen 
 hundred and sixteen, as amended by this Act, shall be, respectively, 
 $1,000 and $2,000, and ( b ) the returns required under subdivisions 
 
 8 
 
(b) and (c) of section eight of such Act, as amended by this Act, 
 shall be required in the case of net incomes of $1,000 or over, in the 
 case of unmarried persons, and $2,000 or over in the case of married 
 persons, instead of $3,000 or over, as therein provided, and ( c ) the 
 provisions of subdivision ( c ) of section nine of such Act, as amended 
 by this Act, requiring the normal tax of individuals on income de¬ 
 rived from interest to be deducted and withheld at the source of the 
 income shall not apply to the new two per centum normal tax pre¬ 
 scribed in section one of this Act until on and after January first, 
 nineteen hundred and eighteen, and thereafter only one two per 
 centum normal tax shall be deducted and withheld at the source under 
 the provisions of such subdivision (c), and any further normal tax 
 for which the recipient of such income is liable under this Act or such 
 Act of September eighth, nineteen hundred and sixteen, as amended 
 by this Act, shall be paid by such recipient. 
 
 Sec. 4. That in addition to the tax imposed by subdivision ( a ) 
 of section ten of such Act of September eighth, nineteen hundred 
 and sixteen, as amended by this Act, there shall be levied, assessed, 
 collected, and paid a like tax of four per centum upon the income 
 received in the calendar year nineteen hundred and seventeen and 
 every calendar year thereafter, by every corporation, joint-stock 
 company or association, or insurance company, subject to the tax 
 imposed by that subdivision of that section, except that if it has fixed 
 its own fiscal year, the tax imposed by this section for the fiscal year 
 ending during the calendar year nineteen hundred and seventeen 
 shall be levied, assessed, collected, and paid only on that proportion 
 of its income for such fiscal year which the period between January 
 first, nineteen hundred and seventeen, and the end of such fiscal year 
 bears to the whole of such fiscal year. 
 
 The tax imposed by this section shall be computed, levied, 
 assessed, collected, and paid upon the same incomes and in the same 
 manner as the tax imposed by subdivision ( a ) of section ten of such 
 Act of September eighth, nineteen hundred and sixteen, as amended 
 by this Act, except that for the purpose of the tax imposed by this 
 section the income embraced in a return of a corporation, joint-stock 
 company or association, or insurance company, shall be credited 
 with the amount received as dividends upon the stock or from the 
 net earnings of any other corporation, joint-stock company or asso¬ 
 ciation, or insurance company, which is taxable upon its net in¬ 
 come as provided in this title. 
 
 Sec. 5. That the provisions of this title shall not extend to 
 Porto Rico or the Philippine Islands, and the Porto Rican or Philip¬ 
 pine Legislature shall have power by due enactment to amend, alter, 
 modify, or repeal the income tax laws in force in Porto Rico or the 
 Philippine Islands, respectively. 
 
 9 
 
TITLE II.—War Excess Profits Tax. 
 
 Sec. 200. That when used in this title— 
 
 The term “corporation” includes joint-stock companies or 
 associations, and insurance companies; 
 
 The term “domestic” means created under the law of the United 
 States, or of any State, Territory, or District thereof, and the term 
 “foreign” means created under the law of any other possession of 
 the United States or of any foreign country or government; 
 
 The term “United States” means only the States, the Territories 
 of Alaska and Hawaii, and the District of Columbia; 
 
 The term “taxable year” means the twelve months ending 
 December thirty-first, excepting in the case of a corporation or 
 partnership which has fixed its own fiscal year, in which case it 
 means such fiscal year. The first taxable year shall be the year 
 ending December thirty-first, nineteen hundred and seventeen, 
 except that in the case of a corporation or partnership which has 
 fixed its own fiscal year, it shall be the fiscal year ending during the 
 calendar year nineteen hundred and seventeen. If a corporation or 
 partnership, prior to March first, nineteen hundred and eighteen, 
 makes a return covering its own fiscal year, and includes therein the 
 income received during that part of the fiscal year falling within the 
 calendar year nineteen hundred and sixteen, the tax for such taxable 
 year shall be that proportion of the tax computed upon the net 
 income during such full fiscal year which the time from January 
 first, nineteen hundred and seventeen, to the end of such fiscal 
 year bears to the full fiscal year; and 
 
 The term “prewar period” means the calendar years nineteen 
 hundred and eleven, nineteen hundred and twelve, and nineteen 
 hundred and thirteen, or, if a corporation or partnership was not in 
 existence or an individual was not engaged in a trade or business 
 during the whole of such period, then as many of such years during 
 the whole of which the corporation or partnership was in existence 
 or the individual was engaged in the trade or business. 
 
 The terms “trade” and “business” include professions and occu¬ 
 pations. 
 
 The term “net income” means in the case of a foreign corporation 
 or partnership or a non-resident alien individual, the net income 
 received from sources within the United States. 
 
 10 
 
Sec. 201. That in addition to the taxes under existing law and 
 under this Act there shall be levied, assessed, collected, and paid 
 for each taxable year upon the income of every corporation, partner¬ 
 ship, or individual, a tax (hereinafter in this title referred to as the 
 tax) equal to the following percentages of the net income: 
 
 Twenty per centum of the amount of the net income in excess of 
 the deduction (determined as hereinafter provided) and not in excess 
 of fifteen per centum of the invested capital for the taxable year; 
 
 Twenty-five per centum of the amount of the net income in 
 excess of fifteen per centum and not in excess of twenty per centum 
 of such capital; 
 
 Thirty-five per centum of the amount of the net income in excess 
 of twenty per centum and not in excess of twenty-five per centum 
 of such capital; 
 
 Forty-five per centum of the amount of the net income in excess 
 of twenty-five per centum and not in excess of thirty-three per 
 centum of such capital; and 
 
 Sixty per centum of the amount of the net income in excess of 
 thirty-three per centum of such capital. 
 
 For the purpose of this title every corporation or partnership 
 not exempt under the provisions of this section shall be deemed to 
 be engaged in business, and all the trades and businesses in which 
 it is engaged shall be treated as a single trade or business, and all 
 its income from whatever source derived shall be deemed to be 
 received from such trade or business. 
 
 This title shall apply to all trades or businesses of whatever 
 description, whether continuously carried on or not, except— 
 
 (a) In the case of officers and employees under the United States, 
 or any State, territory, or the District of Columbia, or any local 
 sub-division thereof, the compensation or fees received by them as 
 such officers or employees; 
 
 ( b ) Corporations exempt from tax under the provisions of section 
 eleven of Title I of such act of September eighth, nineteen hundred 
 and sixteen, as amended by this Act, and partnerships and indi¬ 
 viduals carrying on or doing the same business, or coming within the 
 same description; and 
 
 (c) Incomes derived from the business of life, health, and acci¬ 
 dent insurance combined in one policy issued on the weekly premium 
 payment plan. 
 
 11 
 
Sec. 202. That the tax shall not be imposed in the case of the 
 trade or business of a foreign corporation or partnership or a non¬ 
 resident alien individual, the net income of which trade or business 
 during the taxable year is less than $3,000. 
 
 Sec. 203. That for the purposes of this title the deduction 
 shall be as follows, except as otherwise in this title provided— 
 
 {a) In the case of a domestic corporation, the sum of (1) an 
 amount equal to the same percentage of the invested capital for the tax¬ 
 able year which the average amount of the annual net income of the 
 trade or business during the prewar period was of the invested cap¬ 
 ital for the prewar period (but not less than seven or more than nine 
 per centum of the invested capital for the taxable year), and (2) 
 $3,000; 
 
 (b) In the case of a domestic partnership or of a citizen or resi¬ 
 dent of the United States, the sum of (1) an amount equal to the 
 same percentage of the invested capital for the taxable year which 
 the average amount of the annual net income of the trade or business 
 during the prewar period was of the invested capital for the prewar 
 period (but not less than seven or more than nine per centum of the 
 invested capital for the taxable year), and (2) $6,000; 
 
 (c) In the case of a foreign corporation or partnership or of 
 a nonresident alien individual, an amount ascertained in the same 
 manner as provided in subdivisions (a) and (b), without any ex¬ 
 emption of $3,000 or $6,000. 
 
 (< d ) If the Secretary of the Treasury is unable satisfactorily to 
 determine the average amount of the annual net income of the trade 
 or business during the prewar period, the deduction shall be deter¬ 
 mined in the same manner as provided in section two hundred and 
 five. 
 
 Sec. 204. That if a corporation or partnership was not in exis¬ 
 tence, or an individual was not engaged in the trade or business, during 
 the whole of any one calendar year during the prewar period, the de¬ 
 duction shall be an amount equal to eight per centum of the invested 
 capital for the taxable year, plus in the case of a domestic corpora¬ 
 tion $3,000, and in the case of a domestic partnership or a citizen or 
 resident of the United States $6,000. 
 
 A trade or business carried on by a corporation, partnership, or 
 individual, although formally organized or reorganized on or after 
 January second, nineteen hundred and thirteen, which is substantially 
 a continuation of a trade or business carried on prior to that date, 
 shall, for the purpose of this title, be deemed to have been in existence 
 
 12 
 
prior to that date, and the net income and invested capital of its pre¬ 
 decessor prior to that date shall be deemed to have been its net in¬ 
 come and invested capital. 
 
 Sec. 205. (a) That if the Secretary of the Treasury, upon com¬ 
 
 plaint finds either (1) that during the prewar period a domestic 
 corporation or partnership, or a citizen or resident of the United 
 States, had no net income from the trade or business, or (2) that 
 during the pre-war period the percentage, which the net income was 
 of the invested capital, was low as compared with the percentage, 
 which the net income during such period of representative corpor¬ 
 ations, partnerships, and individuals, engaged in a like or similar 
 trade or business, was of their invested capital, then the deduction 
 shall be the sum of (1) an amount equal to the same percentage of 
 its invested capital for the taxable year which the average deduction 
 (determined in the same manner as provided in section two hundred 
 and three, without including the $3,000 or $6,000 therein referred 
 to) for such year of representative corporations, partnerships or 
 individuals, engaged in a like or similar trade or business, is of their 
 average invested capital for such year, plus (2) in the case of a do¬ 
 mestic corporation $3,000, and in the case of a domestic partnership 
 or a citizen or resident of the United States $6,000. 
 
 The percentage which the net income was of the invested capital 
 in each trade or business shall be determined by the Commissioner 
 of Internal Revenue, in accordance with the regulations prescribed 
 by him, with the approval of the Secretary of the Treasury. In the 
 case of a corporation or partnership which has fixed its own fiscal 
 year, the percentage determined for the calendar year ending during 
 such fiscal year shall be used. 
 
 (b) The tax shall be assessed upon the basis of the deduction 
 determined as provided in section two hundred and three, but the 
 taxpayer claiming the benefit of this section may at the time of 
 making the return file a claim for abatement of the amount by which 
 the tax so assessed exceeds a tax computed upon the basis of the 
 deduction determined as provided in this section. In such event, 
 collection of the part of the tax covered by such claim for abate¬ 
 ment shall not be made until the claim is decided, but if in the 
 judgment of the Commissioner of Internal Revenue, the interests of 
 the United States would be jeopardized thereby he may require 
 the claimant to give a bond in such amount and with such sureties 
 as the Commissioner may think wise to safeguard such interests, 
 conditioned for the payment of any tax found to be due, with the 
 interest thereon, and if such bond, satisfactory to the Commissioner, 
 is not given within such time as he prescribes, the full amount of 
 tax assessed shall be collected and the amount overpaid, if any, 
 shall upon final decision of the application be refunded as a tax 
 erroneously or illegally collected. 
 
 13 
 
Sec. 206. That for the purposes of this title the net income of a 
 corporation shall be ascertained and returned (a) for the calendar 
 years nineteen hundred and eleven and nineteen hundred and twelve 
 upon the same basis and in the same manner as provided in section 
 thirty-eight of the Act entitled “An Act to provide revenue, equalize 
 duties, and encourage the industries of the United States, and for 
 other purposes,” approved August fifth, nineteen hundred and nine, 
 except that income taxes paid by it within the year imposed by the 
 authority of the United States shall be included; ( b ) for the calendar 
 year nineteen hundred and thirteen upon the same basis and in the 
 same manner as provided in section II of the Act entitled “An Act 
 to reduce tariff duties and to provide revenue for the Government, 
 and for other purposes,” approved October third, nineteen hundred 
 and thirteen, except that income taxes paid by it within the year 
 imposed by the authority of the United States shall be included, and 
 except that the amounts received by it as dividends upon the stock 
 or from the net earnings of other corporations, joint-stock companies 
 or associations, or insurance companies, subject to the tax imposed by 
 section II of such Act of October third, nineteen hundred and thir¬ 
 teen, shall be deducted; and ( c ) for the taxable year upon the 
 same basis and in the same manner as provided in Title I of the 
 Act entitled “An Act to increase the revenue, and for other pur¬ 
 poses,” approved September eighth, nineteen hundred and sixteen, 
 as amended by this Act, except that the amounts received by it as 
 dividends upon the stock or from the net earnings of other corpora¬ 
 tions, joint-stock companies or associations, or insurance companies, 
 subject to the tax imposed by Title I of such Act of September eighth, 
 nineteen hundred and sixteen, shall be deducted. 
 
 The net income of a partnership or individual shall be ascertained 
 and returned for the calendar years nineteen hundred and eleven, 
 nineteen hundred and twelve, and nineteen hundred and thirteen, 
 and for the taxable year, upon the same basis and in the same manner 
 as provided in Title I of such Act of September eighth, nineteen 
 hundred and sixteen, as amended by this Act, except that the credit 
 allowed by subdivision ( b ) of section five of such Act shall be 
 deducted. There shall be allowed (a) in the case of a domestic 
 partnership the same deductions as allowed to individuals in sub¬ 
 division (a) of section five of such Act of September eighth, nineteen 
 hundred and sixteen, as amended by this Act; and ( b ) in the case 
 of a foreign partnership the same deductions as allowed to individuals 
 in subdivision (a) of section six of such Act as amended by this Act. 
 
 Sec. 207. That as used in this title the term “invested capital” 
 for any year means the average invested capital for the year, as 
 defined and limited in this title, averaged monthly. 
 
 As used in this title “invested capital” does not include stocks, 
 
 14 
 
bonds (other than obligations of the United States), or other assets, 
 the income from which is not subject to the tax imposed by this 
 title, nor money or other property borrowed, and means, subject 
 to the above limitations: 
 
 (a) In the case of a corporation or partnership: (1) actual 
 cash paid in, (2) the actual cash value of tangible property paid 
 in other than cash, for stock or shares in such corporation or partner¬ 
 ship, at the time of such payment (but in case such tangible property 
 was paid in prior to January first, nineteen hundred and fourteen, 
 the actual cash value of such property as of January first, nineteen 
 hundred and fourteen, but in no case to exceed the par value of the 
 original stock or shares specifically issued therefor), and (3) paid in 
 or earned surplus and undivided profits used or employed in the 
 business, exclusive of undivided profits earned during the taxable 
 year; Provided , That ( a ) the actual cash value of patents and 
 copyrights paid in for stock or shares in such corporation or part¬ 
 nership, at the time of such payment, shall be included as invested 
 capital, but not to exceed the par value of such stock or shares at the 
 time of such payment, and ( b ) the good will, trade marks, trade 
 brands, the franchise of a corporation or partnership, or other in¬ 
 tangible property, shall be included as invested capital if the cor¬ 
 poration or partnership made payment bona fide therefor specifically 
 as such in cash or tangible property, the value of such good will, 
 trade mark, trade brand, franchise, or intangible property, not to 
 exceed the actual cash or actual cash value of the tangible property 
 paid therefor at the time of such payment; but good will, trade¬ 
 marks, trade brands, franchise of a corporation or partnership, or 
 other intangible property, bona fide purchased, prior to March 
 third, nineteen hundred and seventeen, for and with interests or 
 shares in a partnership or for and with shares in the capital stock 
 of a corporation (issued prior to March third, nineteen hundred and 
 seventeen), in an amount not to exceed, on March third, nineteen 
 hundred and seventeen, twenty per centum of the total interests or 
 shares in the partnership or of the total shares of the capital stock 
 of the corporation, shall be included in invested capital at a value 
 not to exceed the actual cash value at the time of such purchase, 
 and in case of issue of stock therefor not to exceed the par value of 
 such stock; 
 
 (b) In the case of an individual, (1) actual cash paid into the 
 trade or business, and (2) the actual cash value of tangible prop¬ 
 erty paid into the trade or business, other than cash, at the time 
 of such payment (but in case such tangible property was paid in 
 prior to January first, nineteen hundred and fourteen, the actual 
 cash value of such property as of January first, nineteen hundred 
 and fourteen), and (3) the actual cash value of patents, copyrights, 
 good will, trade marks, trade brands, franchises, or other intan- 
 
 15 
 
gible property, paid into the trade or business, at the time of such 
 payment, if payment was made therefor specifically as such in 
 cash or tangible property, not to exceed the actual cash or actual 
 cash value of the tangible property bona fide paid therefor at the time 
 of such payment. 
 
 In the case of a foreign corporation or partnership or of a non¬ 
 resident alien individual the term “invested capital” means that 
 proportion of the entire invested capital, as defined and limited 
 in this title, which the net income from sources within the United 
 States bears to the entire net income. 
 
 Sec. 208. That in case of the reorganization, consolidation, or 
 change of ownership of a trade or business after March third, nine¬ 
 teen hundred and seventeen, if an interest or control in such trade 
 or business of fifty per centum or more remains in control of the 
 same persons, corporations, associations, partnerships, or any of 
 them, then in ascertaining the invested capital of the trade or busi¬ 
 ness no asset transferred or received from the prior trade or business 
 shall be allowed a greater value than would have been allowed under 
 this title in computing the invested capital of such prior trade or 
 business if such asset had not been so transferred or received, unless 
 such asset was paid for specifically as such, in cash or tangible 
 property, and then not to exceed the actual cash or actual cash value 
 of the tangible property paid therefor at the time of such payment. 
 
 Sec. 209. That in the case of a trade or business having no 
 invested capital or not more than a nominal capital there shall be 
 levied, assessed, collected, and paid, in addition to the taxes under 
 existing law and under this act, in lieu of the tax imposed by section 
 two hundred and one, a tax equivalent to eight per centum of the 
 net income of such trade or business, in excess of the following 
 deductions: in the case of a domestic corporation, $3,000, and in the 
 case of a domestic partnership, or a citizen or resident of the United 
 States, $6,000, in the case of all other trades or business, no deduc¬ 
 tion. 
 
 Sec. 210. That if the Secretary of the Treasury is unable in any 
 case satisfactorily to determine the invested capital, the amount of 
 the deduction shall be the sum of (1) an amount equal to the same 
 proportion of the net income of the trade or business received during 
 the taxable year as the proportion which the average deduction 
 (determined in the same manner as provided in section two hundred 
 and three, without including the $3,000 or $6,000 therein referred 
 to) for the same calendar year of representative corporations, part¬ 
 nerships, and individuals, engaged in a like or similar trade or busi¬ 
 ness, bears to the total net income of the trade or business received 
 by such corporations, partnerships, and individuals, plus (2) in the 
 
 16 
 
case of a domestic corporation $3,000, and in the case of a domestic 
 partnership or a citizen or resident of the United States $6,000. 
 
 For the purpose of this section the proportion between the 
 deduction and the net income in each trade or business shall be 
 determined by the commissioner of internal revenue in accordance 
 with regulations prescribed by him, with the approval of the Secre¬ 
 tary of the Treasury. In the case of a corporation or partnership 
 which has fixed its own fiscal year, the proportion determined for 
 the calendar year ending during such fiscal year shall be used. 
 
 Sec. 211. That every foreign partnership having a net income 
 of $3,000 or more for the taxable year, and every domestic partner¬ 
 ship having a net income of $6,000 or more for the taxable year, shall 
 render a correct return of the income of the trade or business for the 
 taxable year, setting forth specifically the gross income for such year, 
 and the deductions allowed in this title. Such returns shall be 
 rendered at the same time and in the same manner as is prescribed 
 for income-tax returns under Title I of such Act of September eighth, 
 nineteen hundred and sixteen, as amended by this Act. 
 
 Sec. 212. That all administrative, special, and general pro¬ 
 visions of law, including the laws in relation to the assessment, 
 remission, collection, and refund of internal-revenue taxes not 
 heretofore specifically repealed, and not inconsistent with the pro¬ 
 visions of this title, are hereby extended and made applicable to all 
 the provisions of this title and to the tax herein imposed, and all 
 provisions of Title I of such Act of September eighth, nineteen hun¬ 
 dred and sixteen, as amended by this Act, relating to returns and 
 payment of the tax therein imposed, including penalties, are hereby 
 made applicable to the tax imposed by this title. 
 
 Sec. 213. That the Commissioner of Internal Revenue, with 
 the approval of the Secretary of the Treasury, shall make all neces¬ 
 sary regulations for carrying out the provisions of this title, and 
 may require any corporation, partnership, or individual, subject to 
 the provisions of this title, to furnish him with such facts, data, and 
 information as in his judgment are necessary to collect the tax 
 imposed by this title. 
 
 Sec. 214. That Title II (sections two hundred to two hundred 
 and seven, inclusive) of the Act entitled “An Act to provide increased 
 revenue to defray the expenses of the increased appropriations for 
 the Army and Navy, and the extensions of fortifications, and for 
 other purposes,” approved March third, nineteen hundred and 
 seventeen, is hereby repealed. 
 
 Any amount heretofore or hereafter paid on account of the tax 
 
 17 
 
imposed by such Title II, shall be credited toward the payment of 
 the tax imposed by this title, and if the amount so paid exceeds the 
 amount of such tax the excess shall be refunded as a tax erroneously 
 or illegally collected. 
 
 Subdivision (1) of section three hundred and one of such Act of 
 September eighth, nineteen hundred and sixteen, is hereby amended 
 so that the rate of tax for the taxable year nineteen hundred and 
 seventeen shall be ten per centum instead of twelve and one-half 
 per centum, as therein provided. 
 
 Subdivision (2) of such section is hereby amended to read as 
 follows: 
 
 “(2) This section shall cease to be of effect on and after January 
 first, nineteen hundred and eighteen.” 
 
 TITLE III.—War Tax on Beverages. 
 
 Sec. 300. That on and after the passage of this Act there shall 
 be levied and collected on all distilled spirits in bond at that time 
 or that have been or that may be then or thereafter produced in or 
 imported into the United States, except such distilled spirits as are 
 subject to the tax provided in section three hundred and three, in 
 addition to the tax now imposed by law, a tax of $1.10 (or, if with¬ 
 drawn for beverage purposes or for use in the manufacture or pro¬ 
 duction of any article used or intended for use as a beverage, a tax 
 of $2.10) on each proof gallon, or wine gallon when below proof, and 
 a proportionate tax at a like rate on all fractional parts of such proof 
 or wine gallon, to be paid by the distiller or importer when withdrawn 
 and collected under the provisions of existing law. 
 
 That in addition to the tax under existing law there shall be 
 levied and collected upon all perfumes hereafter imported into the 
 United States containing distilled spirits, a tax of $1.10 per wine 
 gallon, and a proportionate tax at a like rate on all fractional parts 
 of such wine gallon Such tax shall be collected by the collector of 
 customs and deposited as internal-revenue collections, under such 
 rules and regulations as the Commissioner of Internal Revenue, with 
 the approval of the Secretary of the Treasury, may prescribe. 
 
 Sec. 301. That no distilled spirits produced after the passage 
 of this Act shall be imported into the United States from any foreign 
 country, or from the West Indian Islands recently acquired from 
 Denmark (unless produced from products the growth of such islands, 
 and not then into any State or Territory or District of the United 
 
 18 
 
States in which the manufacture or sale of intoxicating liquor is 
 prohibited), or from Porto Rico, or the Philippine Islands. Under 
 such rules, regulations, and bonds as the Secretary of the Treasury 
 may prescribe, the provisions of this section shall not apply to dis¬ 
 tilled spirits imported for other than (1) beverage purposes or (2) 
 use in the manufacture or production of any article used or intended 
 for use as a beverage. 
 
 Sec. 302. That at registered distilleries producing alcohol, or 
 other high-proof spirits, packages may be filled with such spirits 
 reduced to not less than one hundred proof from the receiving 
 cisterns and tax paid without being entered into bonded warehouse. 
 Such spirits may also be transferred from the receiving cisterns at 
 such distilleries, by means of pipe lines, direct to storage tanks in the 
 bonded warehouse and may be warehoused in such storage tanks. 
 Such spirits may be also transferred in tanks or tank cars to general 
 bonded warehouses for storage therein, either in storage tanks in 
 such warehouses or in the tanks in which they were transferred. 
 Such spirits may also be transferred after tax payment from receiving 
 cisterns or warehouse storage tanks to tanks or tank cars and may 
 be transported in such tanks or tank cars to the premises of rectifiers 
 of spirits. The Commissioner of Internal Revenue, with the approval 
 of the Secretary of the Treasury, is hereby empowered to prescribe 
 all necessary regulations relating to the drawing off, transferring, 
 gauging, storing and transporting of such spirits; the records to be 
 kept and returns to be made; the size and kind of packages and tanks 
 to be used; the marking, branding, numbering and stamping of such 
 packages and tanks; the kinds of stamps, if any, to be used; and 
 the time and manner of paying the tax; the kind of bond and the 
 penal sum of same. The tax prescribed by law must be paid before 
 such spirits are removed from the distillery premises, or from general 
 bonded warehouse in the case of spirits transferred thereto, except as 
 otherwise provided by law. 
 
 Under such regulations as the Commissioner of Internal Revenue, 
 with the approval of the Secretary of the Treasury, may prescribe, 
 distilled spirits may hereafter be drawn from receiving cisterns and 
 deposited in distillery warehouses without having affixed to the 
 packages containing the same distillery warehouse stamps, and such 
 packages, when so deposited in warehouse, may be withdrawn there¬ 
 from on the original gauge where the same have remained in such 
 warehouse for a period not exceeding thirty days from the date of 
 deposit. 
 
 Under such regulations as the Commissioner of Internal Revenue, 
 with the approval of the Secretary of the Treasury, may prescribe, 
 the manufacturer, warehousing, withdrawal, and shipment, under the 
 provisions of existing law, of ethyl alcohol for other than (I) bever- 
 
 19 
 
age purposes or (2) use in the manufacture or production of any ar¬ 
 ticle used or intended for use as a beverage and denatured alcohol, 
 may be exempted from the provisions of section thirty-two hundred 
 and eighty-three, Revised Statutes of the United States. 
 
 Under such regulations as the Commissioner of Internal Revenue, 
 with the approval of the Secretary of the Treasury, may prescribe, 
 manufacturers of ethyl alcohol for other than beverage purposes 
 may be granted permission under the provisions of section thirty- 
 two hundred and eighty-five, Revised Statutes of the United States, 
 to fill fermenting tubs in a sweet-mash distillery not oftener than 
 once in forty-eight hours. 
 
 Sec. 303. That upon all distilled spirits produced in or imported 
 into the United States upon which the tax now imposed by law has 
 been paid, and which, on the day this Act is passed, are held by a 
 retailer in a quantity in excess of fifty gallons in the aggregate, or 
 by any other person, corporation, partnership, or association in any 
 quantity, and which are intended for sale, there shall be levied, 
 assessed, collected, and paid a tax of $1.10 (or, if intended for sale 
 for beverage purposes or for use in the manufacture or production 
 of any article used or intended for use as a beverage, a tax of $2.10) 
 on each proof gallon, and a proportionate tax at a like rate on all 
 fractional parts of such proof gallon: Provided , That the tax on such 
 distilled spirits in the custody of a court of bankruptcy in insol¬ 
 vency proceedings on June first, nineteen hundred and seventeen, 
 shall be paid by the person to whom the court delivers such 
 distilled spirits at the time of such delivery, to the extent that 
 the amount thus delivered exceeds the fifty gallons herein before 
 provided. 
 
 Sec. 304. That in addition to the tax now imposed or imposed 
 by this Act on distilled spirits there .shall be levied, assessed, col¬ 
 lected, and paid a tax of 15 cents on each proof gallon and a pro¬ 
 portionate tax at a like rate on all fractional parts of such proof 
 gallon on all distilled spirits or wines hereafter rectified, purified, or 
 refined in such manner, and on all mixtures hereafter produced in 
 such manner, that the person so rectifying, purifying, refining, or 
 mixing the same is a rectifier within the meaning of section thirty- 
 two hundred and forty-four, Revised Statutes, as amended, and on 
 all such articles in the possession of the rectifier on the day this Act 
 is passed: Provided , That this tax shall not apply to gin produced 
 by the redistillation of a pure spirit over juniper berries and other 
 aromatics. 
 
 When the process of rectification is completed and the tax pre¬ 
 scribed by this section has been paid, it shall be unlawful for the 
 rectifier or other dealer to reduce in proof or increase in volume such 
 
 20 
 
spirits or wine by the addition of water or other substance; nothing 
 herein contained shall, however, prevent a rectifier from using again 
 in the process of rectification spirits already rectified and upon which 
 the tax has theretofore been paid. 
 
 The tax imposed by this section shall not attach to cordials or 
 liqueurs on which a tax is imposed and paid under the Act entitled 
 “An Act to increase the revenue, and for other purposes/’ approved 
 September eighth, nineteen hundred and sixteen, nor to the mixing 
 and blending of wines, where such blending is for the sole purpose 
 of perfecting such wines according to commercial standards, nor to 
 blends made exclusively of two or more pure straight whiskies 
 aged in wood for a period not less than four years and without the 
 addition of coloring or flavoring matter or any other substance than 
 pure water and if not reduced below ninety proof: Provided , That 
 such blended whiskies shall be exempt from tax under this section 
 only when compounded under the immediate supervision of a 
 revenue officer, in such tanks and under such conditions and super¬ 
 vision as the Commissioner of Internal Revenue, with the approval 
 of the Secretary of the Treasury, may prescribe. 
 
 All distilled spirits taxable under this section shall be subject 
 to uniform regulations concerning the use thereof in the manu¬ 
 facture, blending, compounding, mixing, marking, branding, and 
 sale of whiskey and rectified spirits, and no discrimination what¬ 
 soever shall be made by reason of a difference in the character of the 
 material from which same may have been produced. 
 
 The business of a rectifier of spirits shall be carried on, and the 
 tax on rectified spirits shall be paid, under such rules, regulations, and 
 bonds as may be prescribed by the Commissioner of Internal Revenue, 
 with the approval of the Secretary of the Treasury. 
 
 Any person violating any of the provisions of this section shall 
 be deemed to be guilty of a misdemeanor and, upon conviction, shall 
 be fined not more than $1,000 or imprisoned not more than two years. 
 He shall, in addition, be liable to double the tax evaded, together 
 with the tax, to be collected by assessment or on any bond given. 
 
 Sec. 305. That hereafter collectors of internal revenue shall not 
 furnish wholesale liquor dealer’s stamps in lieu of and in exchange for 
 stamps for rectified spirits unless the package covered by stamp for 
 rectified spirits is to be broken into smaller packages. 
 
 The Commissioner of Internal Revenue, with the approval of 
 the Secretary of the Treasury, is authorized to discontinue the use 
 of the following stamps whenever in his judgment the interests of the 
 Government will be subserved thereby: 
 
 21 
 
Distillery warehouse, special bonded warehouse, special bonded 
 rewarehouse, general bonded warehouse, general bonded retransfer, 
 transfer brandy, export tobacco, export cigars, export oleomargarine 
 and export fermented liquor stamps. 
 
 Sec. 306. That the Commissioner of Internal Revenue, with 
 the approval of the Secretary of the Treasury, is hereby authorized 
 to require at distilleries, breweries, rectifying houses, and wherever 
 else in his judgment such action may be deemed advisable, the 
 installation of meters, tanks, pipes, or any other apparatus for the 
 purpose of protecting the revenue, and such meters, tanks, and pipes 
 and all necessary labor incident thereto shall be at the expense of the 
 person, corporation, partnership, or association on whose premises 
 the installation is required. Any such person, corporation, partner¬ 
 ship, or association refusing or neglecting to install such apparatus 
 when so required by the commissioner shall not be permitted to 
 conduct business on such premises. 
 
 Sec. 307. That on and after the passage of this Act there shall 
 be levied and collected on all beer, lager beer, ale, porter, and other 
 similar fermented liquor, containing one-half per centum or more of 
 alcohol, brewed or manufactured and sold, or stored in warehouse, or 
 removed for consumption or sale, within the United States, by 
 whatever name such liquors may be called, in addition to the tax 
 now imposed by law, a tax of $1.50 for every barrel containing not 
 more than thirty-one gallons, and at a like rate for any other quantity 
 or for the fractional parts of a barrel authorized and defined by law. 
 
 Sec. 308. That from and after the passage of this Act taxable 
 fermented liquors may be conveyed without payment of tax from 
 the brewery premises where produced to a contiguous industrial 
 distillery of either class established under the Act of October third, 
 nineteen hundred and thirteen, to be used as distilling material, and 
 the residue from such distillation, containing less than one- 
 half of one per centum of alcohol by volume, which is to be used in 
 making beverages, may be manipulated by cooling, flavoring, car¬ 
 bonating, settling, and filtering on the distillery premises or elsewhere. 
 
 The removal of the taxable fermented liquor from the brewery 
 to the distillery and the operation of the distillery and removal of 
 the residue therefrom shall be under the supervision of such officer 
 or officers as the Commissioner of Internal Revenue shall deem proper, 
 and the Commissioner of Internal Revenue, with the approval of the 
 Secretary of the Treasury, is hereby authorized to make such regu¬ 
 lations from time to time as may be necessary to give force and effect 
 to this section and to safeguard the revenue. 
 
 22 
 
Sec. 309. That upon all still wines, including vermuth, and upon 
 all champagne and other sparkling wines, liqueurs, cordials, artificial 
 or imitation wines or compounds sold as wine, produced in or im¬ 
 ported into the United States, and hereafter removed from the cus¬ 
 tom-house, place of manufacture, or from bonded premises for sale 
 or consumption, there shall be levied and collected, in addition to 
 the tax now imposed by law upon such articles, a tax equal to 
 such tax, to be levied, collected, and paid under the provisions of 
 existing law. 
 
 Sec. 310. That upon all articles specified in section three hundred 
 and nine upon which the tax now imposed by law has been paid and 
 which are on the day this Act is passed held in excess of twenty-five 
 gallons in the aggregate of such articles and intended for sale, there 
 shall be levied, collected, and paid a tax equal to the tax imposed by 
 such section. 
 
 Sec. 311. That upon all grape brandy or wine spirits withdrawn 
 by a producer of wines from any fruit distillery or special bonded 
 warehouse under subdivision (c) of section four hundred and two 
 of the Act entitled “An Act to increase the revenue, and for other 
 purposes,” approved September eighth, nineteen hundred and six¬ 
 teen, there shall be levied, assessed, collected, and paid in addition to 
 the tax therein imposed, a tax equal to double such tax, to be as¬ 
 sessed, collected, and paid under the provisions of existing law. 
 
 Sec. 312. That upon all sweet wines held for sale by the producer 
 thereof upon the day this Act is passed there shall be levied, assessed, 
 collected, and paid an additional tax equivalent to 10 cents per proof 
 gallon upon the grape brandy or wine spirits used in the fortification 
 of such wine, and an additional tax of 20 cents per proof gallon shall 
 be levied, assessed, collected, and paid upon all grape brandy or 
 wine spirits withdrawn by a producer of sweet wines for the purpose 
 of fortifying such wines and not so used prior to the passage of this 
 Act. 
 
 Sec. 313. That there shall be levied, assessed, collected, and 
 paid— 
 
 (a) Upon all prepared sirups or extracts (intended for use in the 
 manufacture or production of beverages, commonly known as soft 
 drinks, by soda fountains, bottling establishments, and other similar 
 places) sold by the manufacturer, producer, or importer thereof, 
 if so sold for not more than $1.30 per gallon, a tax of 5 cents per gallon; 
 if so sold for more than $1.30 and not more than $2 per gallon, a 
 tax of 8 cents per gallon; if so sold for more than $2 and not more 
 than $3 per gallon, a tax of 10 cents per gallon; if so sold for more than 
 $3 and not more than $4 per gallon, a tax of 15 cents per gallon; and 
 
 23 
 
if so sold for more than $4 per gallon, a tax of 20 cents per gallon; 
 and 
 
 (b) Upon all unfermented grape juice, soft drinks or artificial 
 mineral waters (not carbonated), and fermented liquors containing 
 less than one-half per centum of alcohol, sold by the manufacturer, 
 producer, or importer thereof, in bottles or other closed containers, 
 and upon all ginger ale, root beer, sarsaparilla, pop, and other 
 carbonated waters or beverages, manufactured and sold by the 
 manufacturer, producer, or importer of the carbonic acid gas used 
 in carbonating the same, a tax of 1 cent per gallon; and 
 
 (c) Upon all natural mineral waters or table waters, sold by the 
 producer, bottler, or importer thereof, in bottles or other closed 
 containers, at over 10 cents per gallon, a tax of 1 cent per gallon. 
 
 Sec. 314. That each such manufacturer, producer, bottler, or 
 importer shall make monthly returns under oath to the collector of 
 internal revenue for the district in which is located the principal 
 place of business, containing such information necessary for the 
 assessment of the tax, and at such times and in such manner, as the 
 Commissioner of Internal Revenue, with the approval of the Secretary 
 of the Treasury, may by regulation prescribe. 
 
 Sec. 315. That upon all carbonic acid gas in drums or other 
 containers (intended for use in the manufacture or production of 
 carbonated water or other drinks) sold by the manufacturer, producer, 
 or importer thereof, there shall be levied, assessed, collected, and 
 paid a tax of 5 cents per pound. Such tax shall be paid by the 
 purchaser to the vendor thereof and shall be collected, returned, and 
 paid to the United States by such vendor in the same manner as 
 provided in section five hundred and three. 
 
 TITLE IV.—War Tax on Cigars, Tobacco, and Manufactures 
 
 Thereof. 
 
 Sec. 400. That upon cigars and cigarettes, which shall be 
 manufactured and sold, or removed for consumption or sale, there 
 shall be levied and collected, in addition to the taxes now imposed 
 by existing law, the following taxes, to be paid by the manufacturer 
 or importer thereof: ( a ) on cigars of all descriptions made of 
 tobacco, or any substitute therefor, and weighing not more than 
 three pounds per thousand, 25 cents per thousand; (b) on cigars 
 made of tobacco, or any substitute therefor, and weighing more 
 than three pounds per thousand, if manufactured or imported to 
 retail at 4 cents or more each, and not more than 7 cents each, $1 
 
 24 
 
per thousand; (c) if manufactured or imported to retail at more 
 than 7 cents each and not more than 15 cents each, $3 per thousand; 
 (d) if manufactured or imported to retail at more than 15 cents 
 each and not more than 20 cents each, $5 per thousand; (e) if manu¬ 
 factured or imported to retail at more than 20 cents each, $7 per 
 thousand: Provided , That the word “retail” as used in this section 
 shall mean the ordinary retail price of a single cigar, and that the 
 Commissioner of Internal Revenue may, by regulation, require the 
 manufacturer or importer to affix to each box or container a con¬ 
 spicuous label indicating by letter the clause of this section under 
 which the cigars therein contained have been tax-paid, which must 
 correspond with the tax-paid stamp on said box or container; 
 (/) on cigarettes made of tobacco, or any substitute therefor, made 
 in or imported into the United States, and weighing not more than 
 three pounds per thousand, 80 cents per thousand; weighing more 
 than three pounds per thousand, $1.20 per thousand. 
 
 Every manufacturer of cigarettes (including small cigars weighing 
 not more than three pounds per thousand) shall put up all the 
 cigarettes and such small cigars that he manufactures or has manu¬ 
 factured for him, and sells or removes for consumption or use, in 
 packages or parcels containing five, eight, ten, twelve, fifteen, six¬ 
 teen, twenty, twenty-four, forty, fifty, eighty, or one hundred 
 cigarettes each, and shall securely affix to each of said packages or 
 parcels a suitable stamp denoting the tax thereon and shall properly 
 cancel the same prior to such sale or removal for consumption or use 
 under such regulations as the Commissioner of Internal Revenue, 
 with the approval of the Secretary of the Treasury, shall prescribe; 
 and all cigarettes|imported from a foreign country shall be packed, 
 stamped, and thejstamps canceled in a like manner, in addition to 
 the import stamp indicating inspection of the custom-house before 
 they are withdrawn therefrom. 
 
 Sec. 401. That upon all tobacco and snuff hereafter manu¬ 
 factured and sold, or removed for consumption or use, there shall 
 be levied and collected, in addition to the tax now imposed by law 
 upon such articles, a tax of 5 cents per pound, to be levied, collected, 
 and paid under the provisions of existing law. 
 
 In addition to the packages provided for under existing law, 
 manufactured tobacco and snuff may be put up and prepared by the 
 manufacturer for sale or consumption, in packages of the following 
 description: Packages containing one-eighth, three-eighths, five- 
 eighths, seven-eighths, one and one-eighth, one and three-eighths, 
 one and five-eighths, one and seven-eighths, and five ounces. 
 
 Sec. 402. That sections four hundred, four hundred and one, and 
 four hundred and four, shall take effect thirty days after the passage 
 
 25 
 
of this act: Provided, That after the passage of this Act and before 
 the expiration of the aforesaid thirty days, cigarettes and manufac¬ 
 tured tobacco and snuff may be put up in the packages now provided 
 for by law or in the packages provided for in sections four hundred 
 and four hundred and one. 
 
 Sec. 403. That there shall also be levied and collected, upon 
 all manufactured tobacco and snuff in excess of one hundred pounds 
 or upon cigars or cigarettes in excess of one thousand, which were 
 manufactured or imported, and removed from factory or custom¬ 
 house prior to the passage of this Act, bearing tax-paid stamps affixed 
 to such articles for the payment of the taxes thereon, and which are, 
 on the day after this Act is passed, held and intended for sale by any 
 person, corporation, partnership, or association, and upon all manu¬ 
 factured tobacco, snuff, cigars, or cigarettes, removed from factory 
 or customs house after the passage of this Act but prior to the time 
 when the tax imposed by section four hundred or section four hun¬ 
 dred and one upon such articles takes effect, an additional tax 
 equal to one-half the tax imposed by such sections upon such articles. 
 
 Sec. 404. That there shall be levied, assessed, and collected upon 
 cigarette paper made up into packages, books, sets, or tubes, made 
 up in or imported into the United States and intended for use by the 
 smoker in making cigarettes the following taxes: On each package, 
 book, or set, containing more than twenty-five but not more than 
 fifty papers, one-half of 1 cent; containing more than fifty but not 
 more than one hundred papers, 1 cent; containing more than one 
 hundred papers, 1 cent for each one hundred papers or fractional 
 part thereof; and upon tubes, 2 cents for each one hundred tubes or 
 fractional part thereof. 
 
 TITLE V.—War Tax on Facilities Furnished by Public Utilities 
 
 and Insurance. 
 
 Sec. 500. That from and after the first day of November, nine¬ 
 teen hundred and seventeen, there shall be levied, assessed, col¬ 
 lected, and paid ( a ) a tax equivalent to three per centum of the 
 amount paid for the transportation by rail or water or by any form 
 of mechanical motor power when in competition with carriers by 
 rail or water of property by freight consigned from one point in the 
 United States to another; ( b ) a tax of 1 cent for each 20 cents, or 
 fraction thereof, paid to any person, corporation, partnership, or 
 association, engaged in the business of transporting parcels or 
 packages by express over regular routes between fixed terminals, for 
 the transportation of any package, parcel, or shipment by express 
 from one point in the United States to another: Provided , That noth- 
 
 26 
 
ing herein contained shall be construed to require the carrier collecting 
 such tax to list separately in any bill of lading, freight receipt, or 
 other similar document, the amount of the tax herein levied, if the 
 total amount of the freight and tax be therein stated; (c) a tax 
 equivalent to eight per centum of the amount paid for the transporta¬ 
 tion of persons by rail or water, or by any form of mechanical motor 
 power on a regular established line when in competition with carriers 
 by rail or water, from one point in the United States to another or to 
 any point in Canada or Mexico, where the ticket therefor is sold or 
 issued in the United States, not including the amount paid for com¬ 
 mutation or season tickets for trips less than thirty miles, or for 
 transportation the fare for which does not exceed 35 cents, and a tax 
 equivalent to ten per centum of the amount paid for seats, berths, 
 and staterooms in parlor cars, sleeping cars, or on vessels. If a mile¬ 
 age book used for such transportation or accommodation has been 
 purchased before this section takes effect, or if cash fare be paid, the 
 tax imposed by this section shall be collected from the person present¬ 
 ing the mileage book, or paying the cash fare, by the conductor or 
 other agent, when presented for such transportation or accommoda¬ 
 tion, and the amount so collected shall be paid to the United States in 
 such manner and at such times as the Commissioner of Internal Reve¬ 
 nue, with the approval of the Secretary of the Treasury, may pre¬ 
 scribe; if a ticket (other than a mileage book) is bought and partially 
 used before this section goes into effect it shall not be taxed, but if 
 bought but not so used before this section takes effect, it shall not be 
 valid for passage until the tax has been paid and such payment evi¬ 
 denced on the ticket in such manner as the Commissioner of Internal 
 Revenue, with the approval of the Secretary of the Treasury, may by 
 regulation prescribe; (d) a tax equivalent to five per centum of the 
 amount paid for the transportation of oil by pipe line; (e) a tax of 5 
 cents upon each telegraph, telephone, or radio, dispatch, message, or 
 conversation, which originates within the United States, and for 
 the transmission of which a charge of 15 cents or more is imposed: 
 Provided , That only one payment of such tax shall be required, not¬ 
 withstanding the lines or stations of one or more persons, corpora¬ 
 tions, partnerships, or associations shall be used for the transmission 
 of such dispatch, message, or conversation. 
 
 Sec. 501. That the taxes imposed by section five hundred shall 
 be paid by the person, corporation, partnership, or association 
 paying for the services or facilities rendered. 
 
 In case such carrier does not, because of its ownership of the 
 commodity transported, or for any other reason, receive the amount 
 which as a carrier it would otherwise charge, such carrier shall pay a 
 tax equivalent to the tax which would be imposed upon the trans¬ 
 portation of such commodity if the carrier received payment for 
 such transportation: Provided , That in case of a carrier which on 
 
 27 
 
May first, nineteen hundred and seventeen, had no rates or tariffs 
 on file with the proper Federal or State authority, the tax shall be 
 computed on the basis of the rates or tariffs of other carriers for like 
 services as ascertained and determined by the Commissioner of 
 Internal Revenue: Provided , further , That nothing in this or the 
 preceding section shall be construed as imposing a tax ( a ) upon the 
 transportation of any commodity which is necessary for the use of 
 the carrier in the conduct of its business as such and is intended to be 
 so used or has been so used; or ( b ) upon the transportation of com¬ 
 pany material transported by one carrier, which constitutes a part 
 of a railroad system, for another carrier which is also a part of the 
 same system. 
 
 Sec. 502. That no tax shall be imposed under section five 
 hundred upon any payment received for services rendered to the 
 United States, or any State, Territory, or the District of Columbia. 
 The right to exemption under this section shall be evidenced in 
 such manner as the Commissioner of Internal Revenue, with the 
 approval of the Secretary of the Treasury, may by regulation 
 prescribe. 
 
 Sec. 503. That each person, corporation, partnership, or asso¬ 
 ciation receiving any payments referred to in section five hundred 
 shall collect the amount of the tax, if any, imposed by such section 
 from the person, corporation, partnership, or association making 
 such payments, and shall make monthly returns under oath, in 
 duplicate, and pay the taxes so collected and the taxes imposed upon 
 it under paragraph two of section five hundred and one to the col¬ 
 lector of internal revenue of the district in which the principal office 
 or place of business is located. Such returns shall contain such 
 information, and be made in such manner, as the Commissioner 
 of Internal Revenue, with the approval of the Secretary of the 
 Treasury, may by regulation prescribe. 
 
 Sec. 504. That from and after the first day of November, nine¬ 
 teen hundred and seventeen, there shall be levied, assessed, collected, 
 and paid the following taxes on the issuance of insurance policies: 
 
 (a) Life insurance: A tax equivalent to 8 cents on each $100 
 or fractional part thereof of the amount for which any life is insured 
 under any policy of insurance, or other instrument, by whatever 
 name the same is called: Provided , That on all policies for life insur¬ 
 ance only by which a life is insured not in excess of $500, issued on 
 the industrial or weekly payment plan of insurance, the tax shall be 
 forty per centum of the amount of the first weekly premium: Pro¬ 
 vided further, That policies of reinsurance shall be exempt from the 
 tax imposed by this subdivision; 
 
 28 
 
(b) Marine, inland, and fire insurance: A tax equivalent to 1 cent 
 on each dollar or fractional part thereof of the premium charged 
 under each policy of insurance or other instrument by whatever 
 name the same is called whereby insurance is made or renewed upon 
 property of any description (including rents or profits), whether 
 against peril by sea or inland waters, or by fire or lightning, or other 
 peril: Provided , That policies of reinsurance shall be exempt from 
 the tax imposed by this subdivision. 
 
 (c) Casualty insurance: A tax equivalent to 1 cent on each 
 dollar or fractional part thereof of the premium charged under each 
 policy of insurance or obligation of the nature of indemnity for loss, 
 damage, or liability (except bonds taxable under subdivision two of 
 Schedule A of Title VIII) issued or executed or renewed by any 
 person, corporation, partnership, or association, transacting the 
 business of employer’s liability, workmen’s compensation, accident, 
 health, tornado, plate glass, steam boiler, elevator, burglary, auto¬ 
 matic sprinkler, automobile, or other branch of insurance (except 
 life insurance, and insurance described and taxed in the preceding 
 subdivision): Provided , That policies of reinsurance shall be exempt 
 from the tax imposed by this subdivision; 
 
 (d) Policies issued by any person, corporation, partnership, or 
 association, whose income is exempt from taxation under Title I 
 of the Act entitled “An Act to increase the revenue, and for other 
 purposes,” approved September eighth, nineteen hundred and 
 sixteen, shall be exempt from the taxes imposed by this section. 
 
 Sec. 505. That every person, corporation, partnership, or asso¬ 
 ciation, issuing policies of insurance upon the issuance of which a tax 
 is imposed by section five hundred and four, shall, within the first 
 fifteen days of each month, make a return under oath, in duplicate, 
 and pay such tax to the collector of Internal Revenue of the district 
 in which the principal office or place of business of such person, cor¬ 
 poration, partnership, or association is located. Such returns shall 
 contain such information and be made in such manner as the Com¬ 
 missioner of Internal Revenue, with the approval of the Secretary 
 of the Treasury, may by regulation prescribe. 
 
 TITLE VI.—War Excise Taxes. 
 
 Sec. 600. That there shall be levied, assessed, collected, and 
 paid— 
 
 (a) Upon all automobiles, automobile trucks, automobile 
 wagons, and motorcycles, sold by the manufacturer, producer, 
 or importer, a tax equivalent to three per centum of the price for 
 which so sold; and 
 
 29 
 
( b) Upon all piano players, graphophones, phonographs, talking 
 machines, and records used in connection with any musical instru¬ 
 ment, piano player, graphophone, phonograph, or talking machine, 
 sold by the manufacturer, producer, or importer, a tax equivalent 
 to three per centum of the price for which so sold; and 
 
 (c) Upon all moving-picture films (which have not been exposed) 
 sold by the manufacturer or importer, a tax equivalent to one- 
 fourth of 1 cent per linear foot; and 
 
 (d) Upon all positive moving-picture films (containing a picture 
 ready for projection) sold or leased by the manufacturer, producer, 
 or importer, a tax equivalent to one-half of 1 cent per linear foot; 
 and 
 
 (e) Upon any article commonly or commercially known as 
 jewelry, whether real or imitation, sold by the manufacturer, pro¬ 
 ducer, or importer thereof, a tax equivalent to three per centum 
 of the price for which so sold; and 
 
 (f) Upon all tennis rackets, golf clubs, baseball bats, lacrosse 
 sticks, balls of all kinds, including baseballs, foot balls, tennis, golf, 
 lacrosse, billiard and pool balls, fishing rods and reels, billiard and 
 pool tables, chess and checker boards and pieces, dice, games and 
 parts of games, except playing cards and children’s toys and games, 
 sold by the manufacturer, producer, or importer, a tax equivalent to 
 three per centum of the price for which so sold; and 
 
 (&) Upon all perfumes, essences, extracts, toilet waters, cosmetics, 
 petroleum jellies, hair oils, pomades, hair dressings, hair restoratives, 
 hair dyes, tooth and mouth washes, dentrifrices, tooth pastes, 
 aromatic cachous, toilet soaps and powders, or any similar sub¬ 
 stance, article, or preparation by whatsoever name known or dis¬ 
 tinguished, upon all of the above which are used or applied or 
 intended to be used or applied for toilet purposes, and which are 
 sold by the manufacturer, importer, or producer, a tax equivalent 
 to two per centum of the price for which so sold; and 
 
 (Ji) Upon all pills, tablets, powders, tinctures, troches or lozenges, 
 sirups, medicinal cordials or bitters, anodynes, tonics, plasters, 
 liniments, salves, ointments, pastes, drops, waters (except those 
 taxed under section three hundred and thirteen of this Act), essences, 
 spirits, oils, and all medicinal preparations, compounds, or com¬ 
 positions whatsoever, the manufacturer or producer of which claims 
 to have any private formula, secret, or occult art for making or 
 preparing the same, or has or claims to have any exclusive right or 
 title to the making or preparing the same, or which are prepared, 
 uttered, vended, or exposed for sale under any letters patent, or 
 trade-mark, or which, if prepared by any formula, published or 
 
 30 
 
unpublished, are held out or recommended to the public by the 
 makers, venders, or proprietors thereof as proprietary medicines or 
 medicinal proprietary articles or preparations, or as remedies or 
 specifics for any disease, diseases, or affection whatever affecting 
 the human or animal body, and which are sold by the manufacturer, 
 producer, or importer, a tax equivalent to two per centum of the 
 price for which so sold; and 
 
 (i) Upon all chewing gum or substitute therefor sold by the man¬ 
 ufacturer, producer, or importer, a tax equivalent to two per centum 
 of the price for which so sold; and 
 
 (/) Upon all cameras sold by the manufacturer, producer, or 
 importer, a tax equivalent to three per centum of the price for which 
 so sold. 
 
 Sec. 601. That each manufacturer, producer, or importer of 
 any of the articles enumerated in section six hundred shall make 
 monthly returns under oath in duplicate and pay the taxes imposed 
 on such articles by this title to the collector of internal revenue 
 for the district in which is located the principal place of business. 
 Such returns shall contain such information and be made at such 
 times and in such manner as the Commissioner of Internal Revenue, 
 with the approval of the Secretary of the Treasury, may by regulations 
 prescribe. 
 
 Sec. 602. That upon all articles enumerated in subdivisions 
 (a), (b) y (e) y ( f ), (g), (h) y (t), or (/) of section six hundred, which on 
 the day this Act is passed are held and intended for sale by any 
 person, corporation, partnership, or association, other than (1) a 
 retailer who is not also a wholesaler, or (2) the manufacturer, pro¬ 
 ducer, or importer thereof, there shall be levied, assessed, collected, 
 and paid, a tax equivalent to one-half the tax imposed by each 
 such subdivision upon the sale of the articles therein enumerated. 
 This tax shall be paid by the person, corporation, partnership, 
 or association so holding such articles. 
 
 The taxes imposed by this section shall be assessed, collected, 
 and paid in the same manner as provided in section ten hundred 
 and two in the case of additional taxes upon articles upon which 
 the tax imposed by existing law has been paid. 
 
 Nothing in this section shall be construed to impose a tax upon 
 articles sold and delivered prior to May ninth, nineteen hundred 
 and seventeen, where the title is reserved in the vendor as security 
 for the payment of the purchase money. 
 
 Sec. 603. That on the day this Act takes effect, and thereafter 
 on July first in each year, and also at the time of the original pur- 
 
 31 
 
chase of a new boat by a user, if on any other date than July first, 
 there shall be levied, assessed, collected, and paid, upon the use of 
 yachts, pleasure boats, power boats, and sailing boats, of over five net 
 tons, and motor boats with fixed engines, not used exclusively for trade 
 or national defense, or not built according to plans and specifications 
 approved by the Navy Department, an excise tax to be based on 
 each yacht or boat, at rates as follows: Yachts, pleasure boats, 
 power boats, motor boats with fixed engines, and sailing boats, of 
 over five net tons, length not over fifty feet, 50 cents for each foot, 
 length over fifty feet and not over one hundred feet, $1 for each foot, 
 length over one hundred feet, $2 for each foot; motor boats of not 
 over five net tons with fixed engines, $5. 
 
 In determining the length of such yachts, pleasure boats, power 
 boats, motor boats with fixed engines, and sailing boats, the measure¬ 
 ment of over-all length shall govern. 
 
 In the case of a tax imposed at the time of the original purchase 
 of a new boat on any other date than July first, the amount to be paid 
 shall be the same number of twelfths of the amount of the tax as the 
 number of calendar months, including the month of sale, remaining 
 prior to the following July first. 
 
 TITLE VII.—-War Tax on Admissions and Dues. 
 
 Sec. 700. That from and after the first day of November, nine¬ 
 teen hundred and seventeen, there shall be levied, assessed, collected, 
 and paid, (a) a tax of 1 cent for each 10 cents or fraction thereof 
 of the amount paid for admission to any place, including admission 
 by season ticket or subscription, to be paid by the person paying 
 for such admission: Provided , That the tax on admission of children 
 under twelve years of age where an admission charge for such children 
 is made shall in every case be 1 cent; and (b) in the case of persons 
 (except bona fide employees, municipal officers on official business, 
 and children under twelve years of age) admitted free to any place 
 at a time when and under circumstances under which an admission 
 charge is made to other persons of the same class, a tax of 1 cent 
 for each 10 cents or fraction thereof of the price so charged to such 
 other persons for the same or similar accommodations, to be paid 
 by the persons so admitted; and (c) a tax of 1 cent for each 10 cents 
 or fraction thereof paid for admission to any public performance 
 for profit at any cabaret or other similar entertainment to which the 
 charge for admission is wholly or in part included in the price paid for 
 refreshment, service, or merchandise; the amount paid for such 
 admission to be computed under rules prescribed by the Commissioner 
 of Internal Revenue, with the approval of the Secretary of the 
 
 32 
 
Treasury, such tax to be paid by the person paying for such refresh¬ 
 ment, service, or merchandise. In the case of persons having the 
 permanent use of boxes or seats in an opera house or any place of 
 amusement or a lease for the use of such box or seat in such opera 
 house or place of amusement there shall be levied, assessed, collected, 
 and paid a tax equivalent to ten per centum of the amount for which 
 a similar box or seat is sold for performance or exhibition at which 
 the box or seat is used or reserved by or for the lessee or holder. 
 These taxes shall not be imposed in the case of a place the maxi¬ 
 mum charge for admission to which is 5 cents, or in the case of 
 shows, rides, and other amusements, (the maximum charge for ad¬ 
 mission to which is ten cents) within outdoor general amusement 
 parks, or in the case of admissions to such parks. 
 
 No tax shall be levied under this title in respect to any admis¬ 
 sions all the proceeds of which inure exclusively to the benefit of 
 religious, educational, or charitable institutions, societies, or organ¬ 
 izations, or admissions to agricultural fairs, none of the profits of 
 which are distributed to stockholders or members of the association 
 conducting the same. 
 
 The term “admission” as used in this title includes seats and 
 tables, reserved or otherwise, and other similar accommodations, 
 and the charges made therefor. 
 
 Sec. 701. That from and after the first day of November, nine¬ 
 teen hundred and seventeen, there shall be levied, assessed, collected, 
 and paid, a tax equivalent to ten per centum of any amount paid as 
 dues or membership fees (including initiation fees), to any social, 
 athletic, or sporting club or organization, where such dues or fees 
 are in excess of $12 per year; such taxes to be paid by the person 
 paying such dues or fees: provided, that there shall be exempted 
 from the provisions of this section all amounts paid as dues or fees 
 to a fraternal beneficiary society, order, or association, operating 
 under the lodge system or for the exclusive benefit of the members 
 of a fraternity itself operating under the lodge system, and providing 
 for the payment of life, sick, accident, or other benefits to the mem¬ 
 bers of such society, order, or association or their dependents. 
 
 Sec. 702. That every person, corporation, partnership, or asso¬ 
 ciation ( a ) receiving any payments for such admission, dues, or fees 
 shall collect the amount of the tax imposed by section seven 
 hundred or seven hundred and one from the person making such 
 payments, or ( b ) admitting any person free to any place for admis¬ 
 sion to which a charge is made shall collect the amount of the tax 
 imposed by section seven hundred from the person so admitted, and 
 (c) in either case shall make returns and payments of the amounts 
 so collected, at the same time and in the same manner as provided in 
 section five hundred and three of this Act. 
 
 33 
 
TITLE VIII.—War Stamp Taxes. 
 
 Sec. 800. That on and after the first day of December, nineteen 
 hundred and seventeen, there shall be levied, collected, and paid, 
 for and in respect of the several bonds, debentures, or certificates of 
 stock and of indebtedness, and other documents, instruments, 
 matters, and things mentioned and described in Schedule A of this 
 title, or for or in respect of the vellum, parchment, or paper upon 
 which such instruments, matters, or things, or any of them, are 
 written or printed, by any person, corporation, partnership, or 
 association who makes, signs, issues, sells, removes, consigns, or 
 ships the same, or for whose use or benefit the same are made, signed, 
 issued, sold, removed, consigned, or shipped, the several taxes specified 
 in such schedule. 
 
 Sec. 801. That there shall not be taxed under this title any bond, 
 note, or other instrument, issued by the United States, or by any 
 foreign Government, or by any State, Territory, or the District of 
 Columbia, or local subdivision thereof, or municipal or other cor¬ 
 poration exercising the taxing power, when issued in the exercise of a 
 strictly governmental, taxing, or municipal function; or stocks and 
 bonds issued by co-operative building and loan associations which 
 are organized and operated exclusively for the benefit of their members 
 and make loans only to their shareholders, or by mutual ditch or 
 irrigating companies. 
 
 Sec. 802. That whoever— 
 
 (ia ) Makes, signs, issues, or accepts, or causes to be made, signed, 
 issued, or accepted, any instrument, document, or paper of any 
 kind or description whatsoever without the full amount of tax there¬ 
 on being duly paid; 
 
 (b) Consigns or ships, or causes to be consigned or shipped, by 
 parcel post any parcel, package, or article without the full amount 
 of tax being duly paid; 
 
 ( c ) Manufactures or imports and sells, or offers for sale, or 
 causes to be manufactured or imported and sold, or offered for sale, 
 any playing cards, package, or other article without the full amount 
 of tax being duly paid; 
 
 (d) Makes use of an adhesive stamp to denote any tax imposed 
 by this title without canceling or obliterating such stamp as pre¬ 
 scribed in section eight hundred and four; 
 
 Is guilty of a misdemeanor and upon conviction thereof shall 
 pay a fine of not more than $100 for each offense. 
 
 34 
 
Sec. 803. That whoever— 
 
 (a) Fraudulently cuts, tears, or removes from any vellum, parch¬ 
 ment, paper, instrument, writing, package, or article, upon which 
 any tax is imposed by this title, any adhesive stamp or the impression 
 of any stamp, die, plate, or other article provided, made, or used in 
 pursuance of this title; ( b ) Fraudulently uses, joins, fixes, or places 
 to, with, or upon any vellum, parchment, paper, instrument, writing, 
 package, or article, upon which any tax is imposed by this title, 
 (1) any adhesive stamp, or the impression of any stamp, die, plate, 
 or other article, which has been cut, torn, or removed from any other 
 vellum, parchment, paper, instrument, writing, package, or article, 
 upon which any tax is imposed by this title or (2) any adhesive stamp 
 or the impression of any stamp, die, plate, or other article of in¬ 
 sufficient value; or (3) any forged or counterfeit stamp, or the impres¬ 
 sion of any forged or counterfeited stamp, die, plate, or other article; 
 
 (c) Willfully removes, or alters the cancellation, or defacing 
 marks of, or otherwise prepares, any adhesive stamp, with intent 
 to use, or cause the same to be used, after it has been already used, 
 or knowingly or willfully buys, sells, offers for sale, or gives away, 
 any such washed or restored stamp to any person for use, or know¬ 
 ingly uses the same; 
 
 (d) Knowingly and without lawful excuse (the burden of proof 
 of such excuse being on the accused) has in possession any washed, 
 restored, or altered stamp, which has been removed from any vellum, 
 parchment, paper, instrument, writing, package, or article, 
 
 is guilty of a misdemeanor, and upon conviction shall be punished 
 by a fine of not more than $1,000, or by imprisonment for not more 
 than five years, or both, in the discretion of the court, and any such 
 reused, canceled, or counterfeit stamp and the vellum, parchment, 
 document, paper, package, or article upon which it is placed or 
 impressed shall be forfeited to the United States. 
 
 Sec. 804. That whenever an adhesive stamp is used for denoting 
 any tax imposed by this title, except as hereinafter provided, the 
 person, corporation, partnership, or association using or affixing 
 the same shall write or stamp or cause to be written or stamped 
 thereupon the initials of his or its name and the date upon which 
 the same is attached or used, so that the same may not again be used: 
 Provided , That the Commissioner of Internal Revenue may prescribe 
 such other method for the cancellation of such stamps as he may 
 deem expedient. 
 
 Sec. 805. (a) That the Commissioner of Internal Revenue shall 
 
 cause to be prepared and distributed for the payment of the taxes 
 prescribed in this title suitable stamps denoting the tax on the 
 document, articles, or thing to which the same may be affixed, and 
 shall prescribe such method for the affixing of said stamps in sub¬ 
 stitution for or in addition to the method provided in this title, as 
 he may deem expedient. 
 
 35 
 
(b) The Commissioner of Internal Revenue, with the approval 
 of the Secretary of the Treasury, is authorized to procure any of the 
 stamps provided for in this title by contract whenever such stamps 
 can not be speedily prepared by the Bureau of Engraving and 
 Printing; but this authority shall expire on the first day of January, 
 nineteen hundred and eighteen, except as to imprinted stamps 
 furnished under contract, authorized by the Commissioner of In¬ 
 ternal Revenue. 
 
 ( c ) All .internal-revenue laws relating to the assessment and 
 collection of taxes are hereby extended to and made a part of this 
 title, so far as applicable, for the purpose of collecting stamp taxes 
 omitted through mistake or fraud from any instrument, document, 
 paper, writing, parcel, package, or article named herein. 
 
 Sec. 806. That the Commissioner of Internal Revenue shall 
 furnish to the Postmaster General without prepayment a suitable 
 quantity of adhesive stamps to be distributed to and kept on sale by 
 the various postmasters in the United States. The Postmaster 
 General may require each such postmaster to give additional or 
 increased bond as postmaster for the value of the stamps so furnished, 
 and each such postmaster shall deposit the receipts from the sale of 
 such stamps to the credit of and render accounts to the Postmaster 
 General at such times and in such form as he may by regulations 
 prescribe. The Postmaster General shall at least once monthly 
 transfer all collections from this source to the Treasury as internal- 
 revenue collections. 
 
 Sec. 807. That the collectors of the several districts shall 
 furnish without prepayment to any assistant treasurer or designated 
 depositary of the United States located in their respective collection 
 districts a suitable quantity of adhesive stamps for sale. In such 
 cases the collector may require a bond, with sufficient sureties, to 
 an amount equal to the value of the adhesive stamps so furnished, 
 conditioned for the faithful return, whenever so required, of all 
 quantities or amounts undisposed of, and for the payment monthly 
 of all quantities or amounts sold or not remaining on hand. The 
 Secretary of the Treasury may from time to time make such regu¬ 
 lations as he may find necessary to insure the safe-keeping or prevent 
 the illegal use of all such adhesive stamps. 
 
 SCHEDULE A.—Stamp Taxes. 
 
 1. Bonds of indebtedness: Bonds, debentures, or certificates of 
 indebtedness issued on and after the first day of December, nine¬ 
 teen hundred and seventeen, by any person, corporation, partnership, 
 or association, on each $100 of face value or fraction thereof, 5 cents: 
 Provided , That every renewal of the foregoing shall be taxed as a 
 new issue: Provided further, That when a bond conditioned for the 
 repayment or payment of money is given in a penal sum greater 
 than the debt secured, the tax shall be based upon the amount 
 secured. 
 
 36 
 
2. Bonds, indemnity and surety: Bonds for indemnifying any 
 person, corporation, partnership, or corporation who shall have be¬ 
 come bound or engaged as surety, and all bonds for the due execu¬ 
 tion or performance of any contract, obligation, or requirement, or 
 the duties of any office or position, and to account for money received 
 by virtue thereof, and all other bonds of any description, except 
 such as may be required in legal proceedings, not otherwise provided 
 for in this schedule, 50 cents: Provided, That where a premium is 
 charged for the execution of such bonds the tax shall be paid at the 
 rate of one per centum on each dollar or fractional part thereof of the 
 premium charged: Provided further, That policies of reinsurance 
 shall be exempt from the tax imposed by this subdivision. 
 
 3. Capital stock, issue: On each original issue, whether on 
 organization or reorganization, of certificates of stock by any asso¬ 
 ciation, company, or corporation, on each $100 of face value or 
 fraction thereof, 5 cents: Provided , That where capital stock is 
 issued without face value, the tax shall be 5 cents per share, unless 
 the actual value is in excess of $100 per share, in w T hich case the tax 
 shall be 5 cents on each $100 of actual value or fraction thereof. 
 
 The stamps representing the tax imposed by this subdivision shall 
 be attached to the stock books and not to the certificates issued. 
 
 4. Capital stock, sales or transfers: On all sales, or agreements 
 to sell, or memoranda of sales or deliveries of, or transfers of legal 
 title to shares or certificates of stock in any association, companv, or 
 corporation, whether made upon or shown by the books of the 
 association, company, or corporation, or by any assignment in blank, 
 or by any delivery, or by any paper or agreement or memorandum 
 or other evidence of transfer or sale, whether entitling the holder in 
 any manner to the benefit of such stock or not, on each $100 of face 
 value or fraction thereof, 2 cents, and where such shares of stock 
 are without par value, the tax shall be 2 cents on the transfer or sale 
 or agreement to sell on each share, unless the actual value thereof 
 is in excess of $100 per share, in which case the tax shall be 2 cents 
 on each $100 of actual value or fraction thereof: Provided , That 
 it is not intended by this title to impose a tax upon an agreement 
 evidencing a deposit of stock certificates as collateral security for 
 money loaned thereon, which stock certificates are not actually 
 sold, nor upon such stock certificates so deposited: Provided further , 
 That the tax shall not be imposed upon deliveries or transfers to a 
 broker for sale, nor upon deliveries or transfers by a broker to a 
 customer for whom and upon whose order he has purchased same, 
 but such deliveries or transfers shall be accompanied by a certificate 
 setting forth the facts: Provided further, That in case of sale where 
 the evidence of transfer is shown only by the books of the company 
 the stamp shall be placed upon such books; and where the change 
 of ownership is by transfer of the certificate the stamp shall be 
 placed upon the certificate; and in cases of an agreement to sell 
 
 37 
 
or where the transfer is by delivery of the certificate assigned in 
 blank there shall be made and delivered by the seller to the buyer 
 a bill or memorandum of such sale, to which the stamp shall be affixed; 
 and every bill or memorandum of sale or agreement to sell before 
 mentioned shall show the date thereof, the name of the seller, the 
 amount of the sale, and the matter or thing to which it refers. Any 
 person or persons liable to pay the tax as herein provided, or anyone 
 who acts in the matter as agent or broker for such person or persons 
 who shall make any such sale, or who shall in pursuance of any such 
 sale deliver any stock or evidence of the sale of any stock or bill or 
 memorandum thereof, as herein required, without having the proper 
 stamps affixed thereto with intent to evade the foregoing provisions 
 shall be deemed guilty of a misdemeanor, and upon conviction 
 thereof shall pay a fine of not exceeding $1,000, or be imprisoned not 
 more than six months, or both, at the discretion of the court 
 
 5. Produce, sales of, on exchange: Upon each sale, agreement 
 of sale, or agreement to sell, including so-called transferred or scratch 
 sales, any products or merchandise at any exchange, or board of 
 trade, or other similar place, for future delivery, for each $100 in 
 value of the merchandise covered by said sale or agreement of sale 
 or agreement to sell, 2 cents, and for each additional $100 
 or fractional part thereof in excess of $100, 2 cents: Provided , 
 That on every sale or agreement of sale or agreement to 
 sell as aforesaid the r e shall be made and delivered by the seller to 
 the buyer a bill, memorandum, agreement, or other evidence of 
 such sale, agreement of sale, or agreement to sell, to which there 
 shall be affixed a lawful stamp or stamps in value equal to the amount 
 of the tax on such sale: Provided further, That sellers of commodities 
 described herein, having paid the tax provided by this subdivision, 
 may transfer such contracts to a clearing house corporation or 
 association, and such transfer shall not be deemed to be a sale, or 
 agreement of sale, or an agreement to sell within the provisions of 
 this Act, provided that such transfer shall not vest any beneficial 
 interest in such clearing house association but shall be made for the 
 sole purpose of enabling such clearing house association to adjust 
 and balance the accounts of the members of said clearing house 
 association on their several contracts. And every such bill, mem¬ 
 orandum, or other evidence of sale or agreement to sell shall show 
 the date thereof, the name of the seller, the amount of the sale, and 
 the matter or thing to which it refers; and any person or persons 
 liable to pay the tax as herein provided, or anyone who acts in the 
 matter as agent or broker for such person or persons, who shall make 
 any such sale or agreement of sale, or agreement to sell, or who 
 shall, in pursuance of any such sale, agreement of sale, or agreement 
 to sell, deliver any such products or merchandise without a bill, 
 memorandum, or other evidence thereof as herein required, or who 
 shall deliver such bill, memorandum, or other evidence of sale, or 
 agreement to sell, without having the proper stamps affixed thereto, 
 with intent to evade the foregoing provisions, shall be deemed guilty 
 of a misdemeanor, and upon conviction thereof shall pay a fine of 
 
 38 
 
not exceeding $1,000, or be imprisoned not more than six months, or 
 both, at the discretion of the court. 
 
 That no bill, memorandum, agreement, or other evidence of 
 such sale, or agreement of sale, or agreement to sell, in case of cash 
 sales of products or merchandise for immediate or prompt delivery 
 which in good faith are actually intended to be delivered shall be 
 subject to this tax. 
 
 6. Drafts or checks payable otherwise than at sight or on demand? 
 promissory notes, except bank notes issued for circulation, and for 
 each renewal of the same, for a sum not exceeding $100, 2 cents; 
 and for each additional $100 or fractional part thereof, 2 cents. 
 
 7. Conveyance: Deed, instrument, or writing, whereby any 
 lands, tenements, or other realty sold shall be granted, assigned, 
 transferred, or otherwise conveyed to, or vested in, the purchaser or 
 purchasers, or any other person or persons, by his, her, or their 
 direction, when the consideration or value of the interest or property 
 conveyed, exclusive of the value of any lien or encumbrance remaining 
 thereon at the time of sale, exceeds $100 and does not exceed $500, 
 50 cents; and for each additional $500 or fractional part thereof 
 50 cents: Provided , That nothing contained in this paragraph shall 
 be so construed as to impose a tax upon any instrument or writing 
 given to secure a debt. 
 
 8. Entry of any goods, wares, or merchandise at any custom¬ 
 house, either for consumption or warehousing, not exceeding $100 
 in value, 25 cents; exceeding $100 and not exceeding $500 in value, 
 50 cents; exceeding $500 in value, $1. 
 
 9. Entry for the withdrawal of any goods or merchandise from 
 customs bonded warehouse, 50 cents. 
 
 10. Passage ticket, one way or round trip, for each passenger, 
 sold or issued in the United States for passage by any vessel to a 
 port or place not in the United States, Canada, or Mexico, if costing 
 not exceeding $30, $1; costing more than $30 and not exceeding $60, 
 $3; costing more than $60, $5: Provided , That such passage tickets, 
 costing $10 or less, shall be exempt from taxation. 
 
 11. Proxy for voting at any election for officers, or meeting for 
 the transaction of business, of any incorporated company or asso¬ 
 ciation, except religious, educational, charitable, fraternal, or literary 
 societies, or public cemeteries, 10 cents. 
 
 12. Power of attorney granting authority to do or perform some 
 act for or in behalf of the grantor, which authority is not otherwise 
 vested in the grantee, 25 cents: Provided , That no stamps shall be 
 required upon any papers necessary to be used for the collection of 
 claims from the United States or from any State for pensions, back 
 pay, bounty, or for property lost in the military or naval service or 
 upon powers of attorney required in bankruptcy cases. 
 
 39 
 
13. Playing cards: Upon every pack of playing cards containing 
 not more than fifty-four cards, manufactured or imported, and sold, 
 or removed for consumption or sale, after the passage of this Act, 
 a tax of 5 cents per pack in addition to the tax imposed under ex¬ 
 isting law. 
 
 14. Parcel-post packages: Upon every parcel or package 
 transported from one point in the United States to another by 
 parcel post on which the postage amounts to 25 cents or more, a 
 tax of 1 cent for each 25 cents or fractional part thereof charged for 
 such transportation, to be paid by the consignor. 
 
 No such parcel or package shall be transported until a stamp or 
 stamps representing the tax due shall have been affixed thereto. 
 
 TITLE IX,—War Estate Tax. 
 
 Sec. 900. That in addition to the tax imposed by section two 
 hundred and one of the Act entitled “An Act to increase the revenue, 
 and for other purposes,” approved September eighth, nineteen 
 hundred and sixteen, as amended— 
 
 (a) A tax equal to the following percentages of its value is hereby 
 imposed upon the transfer of each net estate of every decedent dying 
 after the passage of this Act, the transfer of which is taxable under 
 such section (the value of such net estate to be determined as pro¬ 
 vided in Title II of such Act of September eighth, nineteen hundred 
 and sixteen): 
 
 One-half of one per centum of the amount of such net estate 
 not in excess of $50,000; 
 
 One per centum of the amount by which such net estate exceeds 
 $50,000 and does not exceed $150,000; 
 
 One and one-half per centum of the amount by which such net 
 estate exceeds $150,000 and does not exceed $250,000; 
 
 Two per centum of the amount by which such net estate exceeds 
 $250,000 and does not exceed $450,000; 
 
 Two and one-half per centum of the amount by which such net 
 estate exceeds $450,000 and does not exceed $1,000,000; 
 
 Three per centum of the amount by which such net estate exceeds 
 $1,000,000 and does not exceed $2,000,000; 
 
 Three and one-half per centum of the amount by which such net 
 estate exceeds $2,000,000 and does exceed $3,000,000; 
 
 Four per centum of the amount by which such net estate exceeds 
 $3,000,000 and does not exceed $4,000,000; 
 
 Four and one-half per centum of the amount by which such net 
 estate exceeds $4,000,000 and does not exceed $5,000,000; 
 
 40 
 
Five per centum of the amount by which such net estate exceeds 
 $5,000,000 and does not exceed $8,000,000; 
 
 Seven per centum of the amount by which such net estate exceeds 
 $8,000,000 and does not exceed $10,000,000; and 
 
 Ten per centum of the amount by which such net estate exceeds 
 
 $ 10 , 000 , 000 . 
 
 Sec. 901. That the tax imposed by this title shall not apply 
 to the transfer of the net estate of any decedent dying while serving 
 in the military or naval forces of the United States, during the con¬ 
 tinuance of the war in which the United States is now engaged, or 
 if death results from injuries received or disease contracted in such 
 service, within in one year after the termination of such war. For 
 the purposes of this section the termination of the war shall be 
 evidenced by the proclamation of the President. 
 
 TITLE X.—Administrative Provisions. 
 
 Sec. 1000. That there shall be levied, collected, and paid in the 
 United States, upon articles coming into the United States from the 
 West Indian Islands acquired from Denmark, a tax equal to the 
 internal-revenue tax imposed in the United States upon like articles 
 of domestic manufacture; such articles shipped from said islands to 
 the United States shall be exempt from the payment of any tax 
 imposed by the internal-revenue laws of said islands: Provided , 
 That there shall be levied, collected, and paid in said islands, upon 
 articles imported from the United States, a tax equal to the internal- 
 revenue tax imposed in said islands upon like articles there manu¬ 
 factured; and such articles going into said islands from the United 
 States shall be exempt from payment of any tax imposed by the 
 internal-revenue laws of the United States. 
 
 Sec. 1001. That all administrative, special, or stamp provisions 
 of law, including the law relating to the assessment of taxes, so far as 
 applicable, are hereby extended to and made a part of this Act, and 
 every person, corporation, partnership, or association liable to any 
 tax imposed by this Act, or for the collection thereof, shall keep such 
 records and render, under oath, such statements and returns, and 
 shall comply with such regulations as the Commissioner of Internal 
 Revenue, with the approval of the Secretary of the Treasury, may 
 from time to time prescribe. 
 
 Sec. 1002. That where additional taxes are imposed by this Act 
 upon articles or commodities, upon which the tax imposed by existing 
 law has been paid, the person, corporation, partnership, or asso¬ 
 ciation required by this Act to pay the tax shall, within thirty days 
 after its passage, make return under oath in such form and under 
 such regulations as the Commissioner of Internal Revenue with the 
 approval of the Secretary of the Treasury shall prescribe. Payment 
 of the tax shown to be due may be extended to a date not exceeding 
 seven months from the passage of this Act, upon the filing of a 
 
 41 
 
bond for payment in such form and amount and with such sureties 
 as the Commissioner of Internal Revenue, with the approval of the 
 Secretary of the Treasury, may prescribe. 
 
 Sec. 1003. That in all cases where the method of collecting the 
 tax imposed by this Act is not specifically provided, the tax shall 
 be collected in such manner as the Commissioner of Internal Revenue 
 with the approval of the Secretary of the Treasury may prescribe. 
 All administrative and penalty provisions of Title VIII of this Act, 
 in so far as applicable, shall apply to the collection of any tax which 
 the Commissioner of Internal Revenue determines or prescribes 
 shall be paid by stamp. 
 
 Sec. 1004. That whoever fails to make any return required by 
 this Act or the regulations made under authority thereof within the 
 time prescribed or who makes any false or fraudulent return, and 
 whoever evades or attempts to evade any tax imposed by this Act 
 or fails to collect or truly to account for and pay over any such tax, 
 shall be subject to a penalty of not more than $1,000, or to imprison¬ 
 ment for not more than one year, or both, at the discretion of the 
 court, and in addition thereto a penalty of double the tax evaded, or 
 not collected, or accounted for and paid over, to be assessed and 
 collected in the same manner as taxes are assessed and collected, in 
 any case in which the punishment is not otherwise specifically 
 provided. 
 
 Sec. 1005. That the Commissioner of Internal Revenue, with the 
 approval of the Secretary of the Treasury, is hereby authorized to 
 make all needful rules and regulations for the enforcement of the 
 provisions of this Act. 
 
 Sec. 1006. That where the rate of tax imposed by this Act, pay¬ 
 able by stamps, is an increase over previously existing rates, stamps 
 on hand in the collectors’ offices and in the Bureau of Internal 
 Revenue may continue to be used until the supply on hand is exhaus¬ 
 ted, but shall be sold and accounted for at the rates provided by this 
 Act, and assessment shall be made against manufacturers and other 
 taxpayers having such stamps on hand on the day this Act takes 
 effect for the difference between the amount paid for such stamps 
 and the tax due at the rates provided by this Act. 
 
 Sec. 1007. That ( a ) if any person, corporation, partnership, or 
 association has prior to May ninth, nineteen hundred and seventeen, 
 made a bona fide contract with a dealer for the sale, after the tax 
 takes effect, of any article (or in the case of moving picture films, 
 such a contract with a dealer, exchange, or exhibitor, for the sale or 
 lease thereof) upon which a tax is imposed under Title III, IV, or VI, 
 or under subdivision thirteen of Schedule A of Title VIII, or under 
 this section, and (b) if such contract does not permit the adding of 
 the whole of such tax to the amount to be paid under such contract, 
 then the vendee or lessee shall, in lieu of the vendor, or lessor, pay 
 so much of such tax as is not so permitted to be added to the con¬ 
 tract price. 
 
 42 
 
The taxes payable by the vendee or lessee under this section 
 shall be paid to the vendor or lessor at the time the sale or lease is 
 consummated, and collected, returned, and paid to the United 
 States by such vendor or lessor in the same manner as provided in 
 section five hundred and three. 
 
 The term “dealer” as used in this section includes a vendee who 
 purchases any article with intent to use it in the manufacture or 
 production of another article intended for sale. 
 
 Sec. 1008. That in the payment of any tax under this Act not 
 payable by stamp a fractional part of a cent shall be disregarded 
 unless it amounts to one-half cent or more, in which case it shall 
 be increased to one cent. 
 
 Sec. 1009. That the Secretary of the Treasury, under rules and 
 regulations prescribed by him, shall permit taxpayers liable to income 
 and excess profits taxes to make payments in advance in installments 
 or in whole of an amount not in excess of the estimated taxes which 
 will be due from them, and upon determination of the taxes actually 
 due any amount paid in excess shall be refunded as taxes erroneously 
 collected: Provided , That when payment is made in installments at 
 least one-fourth of such estimated tax shall be paid before the expira¬ 
 tion of thirty days after the close of the taxable year, at least an 
 additional one-fourth within two months after the close of the taxable 
 year, at least an additional one-fourth within four months after the 
 close of the taxable year, and the remainder of the tax due on or 
 before the time now fixed by law for such payment: Provided 
 further , That the Secretary of the Treasury, under rules and regu¬ 
 lations prescribed by him, may allow credit against such taxes so 
 paid in advance of an amount not exceeding three per centum per 
 annum calculated upon the amount so paid from the date of such 
 payment to the date now fixed by law for such payment; but no such 
 credit shall be allowed on payments in excess of taxes determined 
 to be due, nor on payments made after the expiration of four and 
 one-half months after the close of the taxable year. All penalties 
 provided by existing law for failure to pay tax when due are hereby 
 made applicable to any failure to pay the tax at the time or times 
 required in this section. 
 
 Sec. 1010. That, under rules and regulations prescribed by the 
 Secretary of the Treasury, Collectors of Internal Revenue may 
 receive, at par and accrued interest, certificates of indebtedness issued 
 under section six of the Act entitled “An Act to authorize an issue of 
 bonds to meet expenditures for the national security and defense, and, 
 for the purpose of assisting in the prosecution of the war, to extend 
 credit to foreign governments, and for other purposes,” approved 
 April twenty-fourth, nineteen hundred and seventeen, and any 
 subsequent Act or Acts, and uncertified checks in payment of income 
 and excess profits taxes, during such time and under such regulations 
 as the Commissioner of Internal Revenue, with the approval of the 
 Secretary of the Treasury, shall prescribe; but if a check so received 
 
 43 
 
is not paid by the bank on which it is drawn the person by whom such 
 check has been tendered shall remain liable for the payment of the 
 tax and for all legal penalties and additions the same as if such 
 check had not been tendered. 
 
 TITLE XI.—Postal Rates. 
 
 Sec. 1100. That the rate of postage on all mail matter of the 
 first class, except postal cards, shall, thirty days after the passage 
 of this Act be, in addition to the existing rate, 1 cent for each ounce 
 or fraction thereof: Provided , That the rate of postage on drop 
 letters of the first class shall be 2 cents an ounce or fraction thereof. 
 Postal cards, and private mailing or post cards when complying with 
 the requirements of existing law, shall be transmitted through the 
 mails at 1 cent each in addition to the existing rate. 
 
 That letters written and mailed by soldiers, sailors, and marines 
 assigned to duty in a foreign country engaged in the present war 
 may be mailed free of postage, subject to such rules and regulations 
 as may be prescribed by the Postmaster General. 
 
 Sec. 1101. That on and after July first, nineteen hundred and 
 eighteen, the rates of postage on publications entered as second-class 
 matter (including sample copies to the extent of ten per centum of 
 the weight of copies mailed to subscribers during the calendar year) 
 when sent by the publisher thereof from the post office of publication 
 or other post office, or when sent by a news agent to actual subscribers 
 thereto, or to other news agents for the purpose of sale: 
 
 {a) In the case of the portion of such publication devoted to mat¬ 
 ter other than advertisements, shall be as follows: (1) on and after 
 July first, nineteen hundred and eighteen, and until July first, 
 nineteen hundred and nineteen, 134 cents per pound or fraction 
 thereof; (2) on and after July first, nineteen hundred and nineteen, 
 1J4 cents per pound or fraction thereof; 
 
 (b) In the case of the portion of such publication devoted to 
 advertisements the rates per pound or fraction thereof for delivery 
 within the several zones applicable to fourth-class matter shall be 
 as follows (but where the space devoted to advertisements does not 
 exceed five per centum of the total space, the rate of postage shall be 
 the same as if the whole of such publication was devoted to matter 
 other than advertisements): (1) on and after July first, nineteen 
 hundred and eighteen, and until July first, ninteen hundred 
 and nineteen, for the first and second zones, 1J4 cents; for the 
 third zone, 1J4 cents; for the fourth zone, 2 cents; for the fifth 
 zone, 234 cents; for the sixth zone, 234 cents; for the seventh zone, 
 3 cents; for the eighth zone, 3 }4 cents; (2) on and after July first, 
 nineteen hundred and nineteen, and until July first,nineteen hundred 
 and twenty, for the first and second zones, 1J4 cents; for the third 
 zone, 2 cents; for the fourth zone, 3 cents; for the fifth zone 334 cents; 
 for the sixth zone, 4 cents; for the seventh zone, 5 cents; for the 
 
 44 
 
eighth zone, 5j^> cents; (3) on and after July first, nineteen hundred 
 and twenty and until July first, nineteen hundred and twenty-one, 
 for the first and second zones, 1% cents; for the third zone, cents; 
 for the fourth zone, 4 cents; for the fifth zone, 4J4 cents; for the sixth 
 zone, 53^2 cents; for the seventh zone, 7 cents; for the eighth zone, 
 7% cents; (4) on and after July first, nineteen hundred and twenty- 
 one, for the first and second zones, 2 cents; for the third zone, 3 cents; 
 for the fourth zone, 5 cents; for the fifth zone, 6 cents; for the sixth 
 zone, 7 cents; for the seventh zone, 9 cents; for the eighth zone, 10 
 cents; 
 
 (c) With the first mailing of each issue of each such publication, 
 the publisher shall file with the postmaster a copy of such issue, 
 together with a statement containing such information as the Post¬ 
 master General may prescribe for determining the postage chargeable 
 thereon. 
 
 Sec. 1102. That the rate of postage on daily newspapers, when 
 the same are deposited in a letter carrier office for delivery by its 
 carriers, shall be the same as now provided by law; and nothing 
 in this title shall affect existing law as to free circulation and existing 
 rates on second-class mail matter wdthin the county of publication: 
 Provided , That the Postmaster General may hereafter require pub¬ 
 lishers to separate or make up to zones in such a manner as he may 
 direct all mail matter of the second class when offered for mailing. 
 
 Sec. 1103. That in the case of newspapers and periodicals 
 entitled to be entered as second-class matter and maintained by and 
 in the interest of religious, educational, scientific, philanthropic, agri¬ 
 cultural, labor, or fraternal organizations or associations, not organ¬ 
 ized for profit and none of the net income of which inures to the 
 benefit of any private stockholder or individual, the second-class 
 postage rates shall be, irrespective of the zone in which delivered 
 (except when the same are deposited in a letter-carrier office for 
 delivery by its carriers, in which case the rates shall be the same as 
 now provided by law), 1cents a pound or fraction thereof on and 
 after July first, nineteen hundred and eighteen, and until July first, 
 nineteen hundred and nineteen, and on and after July first, nineteen 
 hundred and nineteen, 1J4 cents a pound or fraction thereof. The 
 publishers of such newspapers or periodicals before being entitled 
 to the foregoing rates shall furnish to the Postmaster General, at 
 such times and under such conditions as he may prescribe, satisfactory 
 evidence that none of the net income of such organization inures 
 to the benefit of any private stocckholder or individual. 
 
 Sec. 1104. That where the total weight of any one edition or 
 issue of any publication mailed to any one zone does not exceed one 
 pound, the rate of postage shall be 1 cent. 
 
 Sec. 1105. The zone rates provided by this title shall relate to 
 the entire bulk mailed to any one zone and not to individually 
 addressed packages. 
 
 45 
 
Sec. 1106. That where a newspaper or periodical is mailed by 
 other than the publisher or his agent or a news agent or dealer, the 
 rate shall be the same as now provided by law. 
 
 Sec. 1107. That the Postmaster-General, on or before the 
 tenth day of each month, shall pay into the general fund of the 
 Treasury an amount equal to the difference between the estimated 
 amount received during the preceding month for the transportation 
 of first class matter through the mails and the estimated amount 
 which would have been received under the provisions of the law in 
 force at the time of the passage of this Act. 
 
 Sec. 1108. That the salaries of postmasters at offices of the first, 
 second, and third classes shall not be increased after July first, nine¬ 
 teen hundred and seventeen, during the existence of the present 
 war. The compensation of postmasters at offices of the fourth 
 class shall continue to be computed on the basis of the present rates 
 of postage. 
 
 Sec. 1109. That where postmasters at offices of the third class 
 have been since May first, nineteen hundred and seventeen, or 
 hereafter are granted leave without pay for military purposes, the 
 Postmaster General may allow, in addition to the maximum amounts 
 which may now be allowed such offices for clerk hire, in accordance 
 with law an amount not to exceed fifty per centum of the salary 
 of the postmaster. 
 
 Sec. 1110. That section five of the Act approved March third, 
 nineteen hundred and seventeen, entitled “An Act making appro¬ 
 priations for the Post Office Department for the year ending June 
 thirtieth, nineteen hundred and eighteen,” shall not be construed 
 to apply to ethyl alcohol for governmental, scientific, medicinal, 
 mechanical, manufacturing, and industrial purposes, and the Post¬ 
 master General shall prescribe suitable rules and regulations to carry 
 into effect this section in connection with the Act of which it is 
 amendatory, nor shall said section be held to prohibit the use of the 
 mails by regularly ordained ministers of religion; or by officers of 
 regularly established churches, for ordering wines for sacramental 
 uses, or by manufacturers and dealers for quoting and billing such 
 wines for such purposes only. 
 
 TITLE XII.—Income Tax Amendments. 
 
 Sec. 1200. That subdivision (a) of section two of such Act of 
 September eighth, nineteen hundred and sixteen, is hereby amended 
 to read as follows: 
 
 “(tf) That, subject only to such exemptions and deductions as 
 are hereinafter allowed, the net income of a taxable person shall 
 include gains, profits, and income, derived from salaries, wages, or 
 compensation for personal service of whatever kind and in whatever 
 form paid, or from professions, vocations, businesses, trade, com- 
 
 46 
 
merce, or sales, or dealings in property, whether real or personal, 
 growing out of the ownership or use of or interest in real or personal 
 property, also from interest, rent, dividends, securities, or the trans¬ 
 action of any business carried on for gain or profit, or gains or profits 
 and income derived from any source whatever. 
 
 Section four of such Act of September eighth, nineteen hundred 
 and sixteen, is hereby amended to read as follows: 
 
 “Sec. 4. The following income shall be exempt from the 
 provisions of this title: 
 
 “The proceeds of life insurance policies paid to individual 
 beneficiaries upon the death of the insured; the amount received by 
 the insured, as a return of premium or premiums paid by him under 
 life insurance, endowment, or annuity contracts, either during the 
 term or at the maturity of the term mentioned in the contract or 
 upon surrender of the contract; the value of property acquired by 
 gift, bequest, devise, or descent (but the income from such property 
 shall be included as income); interest upon the obligations of a 
 State or any political subdivision thereof or upon the obligations 
 of the United States (but, in the case of obligations of the United 
 States issued after September first, nineteen hundred and seventeen, 
 only if and to the extent provided in the Act authorizing the issue 
 thereof) or its possessions or securities issued under the provisions 
 of the Federal Farm Loan Act of July seventeenth, nineteen hundred 
 and sixteen; the compensation of the present President of the 
 United States during the term for which he has been elected and 
 the judges of the supreme and inferior courts of the United States 
 now in office, and the compensation of all officers and employees of 
 a State, or any political subdivision thereof, except when such 
 compensation is paid by the United States Government.” 
 
 Sec. 1201. (1) That paragraphs second and third of subdivision 
 
 (a) of section five of such Act of September eighth, nineteen hundred 
 and sixteen, are hereby amended to read as follows: 
 
 “Second. All interest paid within the year on his indebtedness 
 except on indebtedness incurred for the purchase of obligations or 
 securities the interest upon which is exempt from taxation as in¬ 
 come under this title; 
 
 “Third. Taxes paid within the year imposed by the authority 
 of the United States (except income and excess profits taxes) or of its 
 Territories, or possessions, or any foreign country, or by the authority 
 of any State, county, school district, or municipality, or other 
 taxing subdivision of any State, not including those assessed against 
 local benefits;” 
 
 (2) That section five of such Act of September eighth, 
 nineteen hundred and sixteen, is hereby amended by adding at the 
 end of subdivision (a) a further paragraph numbered nine, to read 
 as follows: 
 
 47 
 
“Ninth. Contributions or gifts actually made within the year 
 to corporations or associations organized and operated exclusively 
 for religious, charitable, scientific, or educational purposes, or to 
 societies for the prevention of cruelty to children or animals, no 
 part of the net income of which inures to the benefit of any private 
 stockholder or individual, to an amount not in excess of fifteen per 
 centum of the taxpayer’s taxable net income as computed without 
 the benefit of this paragraph. Such contributions or gifts shall be 
 allowable as deductions only if verified under rules and regulations 
 prescribed by the Commissioner of Internal Revenue, with the 
 approval of the Secretary of the Treasury.” 
 
 Sec. 1202. That (1) paragraphs second and third of subdivision 
 {a) of section six of such Act of September eighth, nineteen hundred 
 and sixteen, are hereby amended to read as follows: 
 
 “Second. The proportion of all interest paid within the year 
 by such person on his indebtedness (except on indebtedness incurred 
 for the purchase of obligations or securities the interest upon which 
 is exempt from taxation as income under this title) which the gross 
 amount of his income for the year derived from sources within the 
 United States bears to the gross amount of his income for the year 
 derived from all sources within and without the United States, 
 but this deduction shall be allowed only if such person includes in the 
 return required by section eight all the information necessary for 
 its calculation; 
 
 “Third. Taxes paid within the year imposed by the authority 
 of the United States (except income and excess profits taxes), or of its 
 Territories, or possessions, or by the authority of any State, county, 
 school district, or municipality, or other taxing subdivision of any 
 State, paid within the United States, not including those assessed 
 against local benefits;” 
 
 (2) Section six of such Act of September eighth, nineteen hundred 
 and sixteen, is also further amended by adding a new subdivision 
 to read as follows: 
 
 “(c) A nonresident alien individual shall receive the benefit 
 of the deductions and credits provided for in this section only by 
 filing or causing to be filed with the collector of internal revenue a 
 true and accurate return of his total income, received from all 
 sources, corporate or otherwise, in the United States, in the manner 
 prescribed by this title; and in case of his failure to file such return 
 the collector shall collect the tax on such income, and all property 
 belonging to such nonresident alien individual shall be liable to 
 distraint for the tax.” 
 
 Sec. 1203. (1) That section seven of such Act of September eighth, 
 nineteen hundred and sixteen, is hereby amended to read as follows: 
 
 “Sec. 7. That for the purpose of the normal tax only, there shall 
 be allowed as an exemption in the nature of a deduction from the 
 
 48 
 
amount of the net income of each citizen or resident of the United 
 States, ascertained as provided herein, the sum of $3,000, plus $1,000 
 additional if the person making the return be a head of a family ora 
 married man with a wife living with him, or plus the sum of $1,000 
 additional if the person making the return be a married woman with 
 a husband living with her; but in no event shall this additional 
 exemption of $1,000 be deducted by both a husband and a wife: 
 Provided , That only one deduction of $4,000 shall be made from the 
 aggregate income of both husband and wife when living together: 
 Provided further, That if the person making the return is the head of 
 a family there shall be an additional exemption of $200 for each 
 child dependent upon such person, if under eighteen years of age, or 
 if incapable of self-support because mentally or physically defective, 
 but this provision shall operate only in the case of one parent in the 
 same family: Provided further, That guardians or trustees shall be 
 allowed to make this personal exemption as to income derived from 
 the property of which such guardian or trustee has charge in favor 
 of each ward or cestui que trust: Provided further, That in no event 
 shall a ward or cestui que trust be allowed a greater personal exemp¬ 
 tion than as provided in this section from the amount of net income 
 received from all sources. There shall also be allowed an exemption 
 from the amount of the net income of estates of deceased citizens or 
 residents of the United States during the period of administration or 
 settlement, and of trust or other estates of citizens or residents of the 
 United States the income of which is not distributed annually or 
 regularly under the provisions of subdivision ( b ) of section two, the 
 sum of $3,000, including such deductions as are allowed under section 
 five.” 
 
 (2) Subdivision ( b ) of section seven of such Act of September 
 eighth, nineteen hundred and sixteen, is hereby repealed. 
 
 Sec. 1204. (1) That subdivisions (c) and (e) of section eight of 
 such Act of September eighth, nineteen hundred and sixteen, are 
 hereby amended to read as follows: 
 
 “(c) Guardians, trustees, executors, administrators, receivers, 
 conservators, and all persons, corporations, or associations, acting 
 in any fiduciary capacity, shall make and render a return of the 
 income of the person, trust, or estate for whom or which they act, 
 and be subject to all the provisions of this title which apply to in¬ 
 dividuals. Such fiduicary shall make oath that he has sufficient 
 knowledge of the affairs of such person, trust, or estate to enable 
 him to make such return and that the same is, to the best of his 
 knowledge and belief, true and correct, and be subject to all the 
 provisions of this title which apply to individuals: Provided , That 
 a return made by one of two or more joint fiduciaries filed in the 
 district where such fiduciary resides, under such regulations as the 
 Secretary of the Treasury may prescribe, shall be a sufficient com¬ 
 pliance with the requirements of this paragraph: Provided further, 
 That no return of income not exceeding $3,000 shall be required except 
 as in this title otherwise provided. 
 
 49 
 
“(e) Persons carrying on business in partnership shall be liable 
 for income tax only in their individual capacity, and the share of the 
 profits of the partnership to which any taxable partner would be 
 entitled if the same were divided, whether divided or otherwise, 
 shall be returned for taxation and the tax paid under the provisions 
 of this title: Provided , That from the net distributive interests on 
 which the individual members shall be liable for tax, normal and 
 additional, there shall be excluded their proportionate shares received 
 from interest on the obligations of a State or any political or taxing 
 subdivision thereof, and upon the obligations of the United States 
 (if and to the extent that it is provided in the Act authorizing the 
 issue of such obligations of the United States that they are exempt 
 from taxation) and its possessions, and that for the purpose of com¬ 
 puting the normal tax there shall be allowed a credit, as provided by 
 section five, subdivision ( b ), for their proportionate share of the 
 profits derived from dividends. Such partnership, when requested 
 by the Commissioner of Internal Revenue or any district collector, 
 shall render a correct return of the earnings, profits, and income of 
 the partnership, except income exempt under section four of this 
 Act, setting forth the item of the gross income and the deductions 
 and credits allowed by this title, and the names and addresses of the 
 individuals who would be entitled to the net earnings, profits, and 
 income, if distributed. A partnership shall have the same privilege 
 of fixing and making returns upon the basis of its own fiscal year 
 as is accorded to corporations under this title. If a fiscal year ends 
 during nineteen hundred and sixteen or a subsequent calendar year 
 for which there is a rate of tax different from the rate for the 
 preceding calendar year, then (1) the rate for such preceding calen¬ 
 dar year shall apply to an amount of each partner’s share of such 
 partnership profits equal to the proportion which the part of such 
 fiscal year falling within such calendar year bears to the full fiscal 
 year, and (2) the rate for the calendar year during which such fiscal 
 year ends shall apply to the remainder. 
 
 (2) Subdivision (d) of section eight of such Act of September 
 eighth, nineteen hundred and sixteen, is hereby repealed. 
 
 Sec. 1205. (1) That subdivisions (&), ( c ), (/), and (g) of section 
 
 nine of such Act of September eighth, nineteen hundred and sixteen, 
 are hereby amended to read as follows: 
 
 “(b) All persons, corporations, partnerships, associations, and 
 insurance companies, in whatever capacity acting, including lessees 
 or mortgagors of real or personal property, trustees acting in any 
 trust capacity, executors, administrators, receivers, conservators, 
 employers, and all officers and employees of the United States, having 
 the control, receipt, custody, disposal, or payment of interest, rent, 
 salaries, wages, premiums, annuities, compensation, remuneration, 
 emoluments, or other fixed or determinable annual or periodical 
 gains, profits, and income of any nonresident alien individual, other 
 than income derived from dividends on capital stock, or from the net 
 
 50 
 
earnings of a corporation, joint-stock company or association, or 
 insurance company, which is taxable upon its net income as pro¬ 
 vided in this title, are hereby authorized and required to deduct and 
 withhold from such annual or periodical gains, profits, and income 
 such sum as will be sufficient to pay the normal tax imposed thereon 
 by this title, and shall make return thereof on or before March first 
 of each year and, on or before the time fixed by law for the payment 
 of the tax, shall pay the amount withheld to the officer of the 
 United States Government authorized to receive the same; and 
 they are each hereby made personally liable for such tax, and they 
 are each hereby indemnified against every person, corporation, 
 partnership, association, or insurance company, or demand whatso¬ 
 ever for all payments which they shall make in pursuance and by 
 virtue of this title. 
 
 (c) The amount of the normal tax hereinbefore imposed shall also 
 be deducted and withheld from fixed or determinable annual or 
 periodical gains, profits, and income derived from interest upon 
 bonds and mortgages, or deeds of trust or other similar obligations 
 of corporations, joint-stock companies, associations, and insurance 
 companies (if such bonds, mortgages, or other obligations contain a 
 contract or provision by which the obligor agrees to pay any portion 
 of the tax imposed by this title upon the obligee or to reimburse the 
 obligee for any portion of the tax or to pay the interest without 
 deduction for any tax which the obligor may be required or per¬ 
 mitted to pay thereon or to retain therefrom under any law of the 
 United States), whether payable annually or at shorter or longer 
 periods, and whether such interest is payable to a nonresident alien 
 individual or to an individual citizen or resident of the United 
 States, subject to the provisions of the foregoing subdivision (b) of 
 this section requiring the tax to be withheld at the source and de¬ 
 ducted from annual income and returned and paid to the Govern¬ 
 ment, unless the person entitled to receive such interest shall file 
 with the withholding agent, on or before February first, a signed 
 notice in writing claiming the benefit of an exemption under section 
 seven of this title. 
 
 “(0 All persons, corporations, partnerships, or associations, 
 undertaking as a matter of business or for profit the collection of 
 foreign payments of interest or dividends by means of coupons, 
 checks, or bills of exchange shall obtain a license from the Commis¬ 
 sioner of Internal Revenue, and shall be subject to such regulations 
 enabling the Government to obtain the information required under 
 this title, as the Commissioner of Internal Revenue, with the approval 
 of the Secretary of the Treasury, shall prescribe; and whoever 
 knowingly undertakes to collect such payments as aforesaid without 
 having obtained a license therefor, or without complying with such 
 regulations, shall be deemed guilty of a misdemeanor and for each 
 offense be fined in a sum not exceeding $5,000, or imprisoned for a 
 term not exceeding one year, or both, in the discretion of the court. 
 
 51 
 
“(g) The tax herein imposed upon gains, profits, and incomes not 
 falling under the foregoing and not returned and paid by virtue of 
 the foregoing or as otherwise provided by law shall be assessed by 
 personal return under rules and regulations to be prescribed by the 
 Commissioner of Internal Revenue and approved by the Secretary of 
 the Treasury. The intent and purpose of this title is that all gains, 
 profits, and income of a taxable class, as defined by this title, shall be 
 charged and assessed with the corresponding tax, normal and addi¬ 
 tional, prescribed by this title, and said tax shall be paid by the 
 owner of such income, or the proper representative having the 
 receipt, custody, control, or disposal of the same. For the purpose 
 of this title ownership or liability shall be determined as of the 
 year for which a return is required to be rendered. 
 
 “The provisions of this section, except subdivision (c), relating 
 to the deduction and payment of the tax at the source of income 
 shall only apply to the normal tax hereinbefore imposed upon non¬ 
 resident alien individuals.” 
 
 (2) Subdivisions (d) and (e) of section nine of such Act of 
 September eighth, nineteen hundred and sixteen, are hereby repealed. 
 
 Sec. 1206. (1) That the first paragraph of section ten of such 
 
 Act of September eighth, nineteen hundred and sixteen, is hereby 
 amended to read as follows: 
 
 “Sec. 10. (a) That there shall be levied, assessed, collected, 
 
 and paid annually upon the total net income received in the preceding 
 calendar year from all sources by every corporation, joint-stock 
 company or association, or insurance company, organized in the 
 United States, no matter how created or organized, but not including 
 partnerships, a tax of two per centum upon such income; and a like 
 tax shall be levied, assessed, collected, and paid annually upon the 
 total net income received in the preceding calendar year from all 
 sources within the United States by every corporation, joint-stock 
 company or association, or insurance company, organized, authorized, 
 or existing under the laws of any foreign country, including interest on 
 bonds, notes, or other interest-bearing obligations of residents, 
 corporate or otherwise, and including the income derived from divi¬ 
 dends on capital stock or from net earnings of resident corporations, 
 joint-stock companies or associations, or insurance companies, whose 
 net income is taxable under this title.” 
 
 (2) Section ten of such Act of September eighth, nineteen hundred 
 and sixteen, is hereby further amended by adding a new subdivision 
 as follows: 
 
 “(b) In addition to the income tax imposed by subdivision (a) 
 of this section there shall be levied, assessed, collected, and paid 
 annually an additional tax of ten per centum upon the amount, 
 remaining undistributed six months after the end of each calendar 
 or fiscal year, of the total net income of every corporation, joint-stock 
 
 52 
 
company or association, or insurance company, received during the 
 year, as determined for the purposes of the tax imposed by such 
 subdivision ( a ), but not including the amount of any income taxes 
 paid by it within the year imposed by the authority of the United States. 
 
 “The tax imposed by this subdivision shall not apply to that por¬ 
 tion of such undistributed net income which is actually invested 
 and employed in the business or is retained for employment in the 
 reasonable requirements of the business or is invested in obligations 
 of the United States issued after September first, nineteen hundred 
 and seventeen: Provided , That if the Secretary of the Treasury 
 ascertains and finds that any portion of such amount so retained 
 at any time for employment in the business is not so employed or 
 is not reasonably required in the business a tax of fifteen per centum 
 shall be levied, assessed, collected, and paid thereon. 
 
 “The foregoing tax rates shall apply to the undistributed net 
 income received by every taxable corporation, joint-stock company 
 or association, or insurance company in the calendar year nineteen 
 hundred and seventeen and in each year thereafter, except that if it 
 has fixed its own fiscal year under the provisions of existing law, the 
 foregoing rates shall apply to the proportion of the taxable undistri¬ 
 buted net income returned for the fiscal year ending prior to December 
 thirty-first, nineteen hundred and seventeen, which the period 
 between January first, nineteen hundred and seventeen, and the end 
 of such fiscal year bears to the whole of such fiscal year.” 
 
 Sec. 1207. (1) That paragraphs third and fourth of subdivision 
 
 (a) of section twelve of such Act of September eighth, nineteen 
 hundred and sixteen, are hereby amended to read as follows: 
 
 “Third. The amount of interest paid within the year on its 
 indebtedness (except on indebtedness incurred for the purchase 
 of obligations or securities the interest upon which is exempt from 
 taxation as income under this title) to an amount of such indebted¬ 
 ness not in excess of the sum of (a) the entire amount of the paid-up 
 capital stock outstanding at the close of the year, or, if no capital 
 stock, the entire amount of capital employed in the business at 
 the close of the year, and ( b) one-half of its interest-bearing in¬ 
 debtedness then outstanding: Provided , That for the purpose 
 of this title preferred capital stock shall not be considered interest- 
 bearing indebtedness, and interest or dividends paid upon this 
 stock shall not be deductible from gross income: Provided further, 
 That in cases wherein shares of capital stock are issued without 
 par or nominal value, the amount of paid-up capital stock, within 
 the meaning of this section, as represented by such shares, will be 
 the amount of cash, or its equivalent, paid or transferred to the 
 corporation as a consideration for such shares: Provided further , 
 That in the case of indebtedness wholly secured by property col¬ 
 lateral, tangible or intangible, the subject of sale or hypothecation 
 in the ordinary business of such corporation, joint-stock company 
 or association as a dealer only in the property constituting such 
 
 53 
 
collateral, or in loaning the funds thereby procured, the total interest 
 paid by such corporation, company, or association within the year 
 on any such indebtedness may be deducted as a part of its expenses 
 of doing business, but interest on such indebtedness shall only 
 be deductible on an amount of such indebtedness not in excess 
 of the actual value of such property collateral: Provided further , 
 That in the case of bonds or other indebtedness, which have been 
 issued with a guaranty that the interest payable thereon shall be 
 free from taxation, no deduction for the payment of the tax herein 
 imposed, or any other tax paid pursuant to such guaranty, shall 
 be allowed; and in the case of a bank, banking association, loan or 
 trust company, interest paid within the year on deposits or on moneys 
 received for investment and secured by interest-bearing certificates 
 of indebtedness issued by such bank, banking association, loan or 
 trust company shall be deducted; 
 
 “Fourth. Taxes paid within the year imposed by the authority 
 of the United States (except income and excess profits taxes), or of 
 its Territories, or possessions, or any foreign country, or by the au¬ 
 thority of any State, county, school district, or municipality, or 
 other taxing subdivision of any State, not including those assessed 
 against local benefits.” 
 
 (2) Paragraphs third and fourth of subdivision (b) of section 
 twelve of such Act of September eighth, nineteen hundred and 
 sixteen, are hereby amended to read as follows: 
 
 “Third. The amount of interest paid within the year on its 
 indebtedness (except on indebtedness incurred for the purchase 
 of obligations or securities the interest upon which is exempt from 
 taxation as income under this title) to an amount of such indebtedness 
 not in excess of the proportion of the sum of (a) the entire amount of 
 the paid-up capital stock outstanding at the close of the year, or, 
 if no capital stock, the entire amount of the capital employed in 
 the business at the close of the year, and ( b ) one-half of its interest- 
 bearing indebtedness then outstanding, which the gross amount 
 of its income for the year from business transacted and capital 
 invested within the United States bears to the gross amount of its 
 income derived from all sources within and without the United 
 States: Provided , That in the case of bonds or other indebtedness 
 which have been issued with a guaranty that the interest payable 
 thereon shall be free from taxation, no deduction for the payment 
 of the tax herein imposed or any other tax paid pursuant to such 
 guaranty shall be allowed; and in case of a bank, banking association, 
 loan or trust company, or branch thereof, interest paid within the 
 year on deposits by or on moneys received for investment from either 
 citizens or residents of the United States and secured by interest- 
 bearing certificates of indebtedness issued by such bank, banking 
 association, loan or trust company, or branch thereof; 
 
 “Fourth. Taxes paid within the year imposed by the authority 
 
 54 
 
of the United States (except income and excess profits taxes), or of 
 its Territories, or possessions, or by the authority of any State, 
 county, school district, or municipality, or other taxing subdivision 
 of any State, paid within the United States, not including those 
 assessed against local benefits.” 
 
 Sec. 1208. That subdivision ( e ) of section thirteen of such 
 Act of September eighth, nineteen hundred and sixteen, is hereby 
 amended to read as follows: 
 
 “(*) All the provisions of this title relating to the tax authorized 
 and required to be deducted and withheld and paid to the officer 
 of the United States Government authorized to receive the same 
 from the income of nonresident alien individuals from sources 
 within the United States shall be made applicable to the tax imposed 
 by subdivision (a) of section ten upon incomes derived from interest 
 upon bonds and mortgages or deeds of trust or similar obligations 
 of domestic or other resident corporations, joint-stock companies 
 or associations, and insurance companies by nonresident alien 
 firms, copartnerships, companies, corporations, joint-stock com¬ 
 panies or associations, and insurance companies, not engaged in 
 business or trade within the United States and not having any 
 office or place of business therein.” 
 
 Sec. 1209. That section eighteen of such Act of September eighth, 
 nineteen hundred and sixteen, is hereby amended to read as follows: 
 
 “Sec. 18. That any person, corporation, partnership, association, 
 or insurance company, liable to pay the tax, to make a return or to 
 supply information required under this title, who refuses or neglects 
 to pay such tax, to make such return or to supply such information 
 at the time or times herein specified in each year, shall be liable, 
 except as otherwise specially provided in this title, to a penalty of not 
 less than $20 nor more than $1,000. Any individual or any officer of 
 any corporation, partnership, association, or insurance company, re¬ 
 quired by law to make, render, sign, or verify any return or to supply 
 any information, who makes any false or fraudulent return or state¬ 
 ment with intent to defeat or evade the assessment required by this 
 title to be made, shall be guilty of a misdemeanor, and shall be 
 fined not exceeding $2,000 or be imprisoned not exceeding one year, 
 or both, in the discretion of the court, with the costs of prosecution: 
 Provided , That where any tax heretofore due and payable has been 
 duly paid by the taxpayer, it shall not be re-collected from any 
 withholding agent required to retain it at its source, not shall any 
 penalty be imposed or collected in such cases from the taxpayer, 
 or such withholding agent whose duty it was to retain it, for failure 
 to return or pay the same, unless such failure was fraudulent and for 
 the purpose of evading payment.” 
 
 Sec. 1210. That section twenty-six of such Act of September 
 eighth, nineteen hundred and sixteen, as amended by the Act entitled 
 “An Act to provide increased revenue to defray the expenses of the 
 
 55 
 
increased appropriations for the Army and Navy and the extensions 
 of fortifications, and for other purposes,” approved March third, 
 nineteen hundred and seventeen, is hereby amended to read as follows: 
 
 “Sec. 26. Every corporation, joint-stock company or association, 
 or insurance company subject to the tax herein imposed, when 
 required by the Commissioner of Internal Revenue, shall render a 
 correct return, duly verified under oath, of its payments of dividends, 
 whether made in cash or its equivalent or in stock, including the 
 names and addresses of stockholders and the number of shares owned 
 by each, and the tax years and the applicable amounts in which such 
 dividends were earned, in such form and manner as may be prescribed 
 by the Commissioner of Internal Revenue, with the approval of the 
 Secretary of the Treasury.” 
 
 Sec. 1211. That Title I of such Act of September eighth, nine¬ 
 teen hundred and sixteen, is hereby amended by adding to Part 
 III six new sections, as follows: 
 
 “Sec. 27. That every person, corporation, partnership, or 
 association, doing business as a broker on any exchange or board 
 of trade or other similar place of business shall, when required by 
 the Commissioner of Internal Revenue, render a correct return duly 
 verified under oath, under such rules and regulations as the Com¬ 
 missioner of Internal Revenue, with the approval of the Secretary 
 of the Treasury, may prescribe, showing the names of customers 
 for whom such person, corporation, partnership, or association has 
 transacted any business, with such details as to the profits, losses, or 
 other information which the commissioner may require, as to each 
 of such customers, as will enable the Commissioner of Internal 
 Revenue to determine whether all income tax due on profits or gains 
 of such customers has been paid. 
 
 “Sec. 28. That all persons, corporations, partnerships, associa¬ 
 tions, and insurance companies, in whatever capacity acting, including 
 lessees or mortgagors of real or personal property, trustees acting 
 in any trust capacity, executors, administrators, receivers, con¬ 
 servators, and employers, making payment to another person, 
 corporation, partnership, association, or insurance company, of 
 interest, rent, salaries, wages, premiums, annuities, compensation, 
 remuneration, emoluments, or other fixed or determinable gains, 
 profits, and income (other than payments described in sections 
 twenty-six and twenty-seven), of $800 or more in any taxable year, 
 or, in the case of such payments made by the United States, the 
 officers or employees of the United States having information as to 
 such payments and required to make returns in regard thereto 
 by the regulations hereinafter provided for, are hereby authorized 
 and required to render a true and accurate return to the Commis¬ 
 sioner of Internal Revenue, under such rules and regulations and in 
 such form and manner as may be prescribed b}^ him, with the approval 
 of the Secretary of the Treasury, setting forth the amount of such 
 gains, profits, and income, and the name and address of the recipient 
 
 56 
 
of such payment: Provided , That such returns shall be required, 
 regardless of amounts, in the case of payments of interest upon 
 bonds and mortgages or deeds of trust or other similar obligations of 
 corporations, joint-stock companies, associations, and insurance 
 companies, and in the case of collections of items (not payable in the 
 United States) of interest upon the bonds of foreign countries and 
 interest from the bonds and dividends from the stock of foreign 
 corporations by persons, corporations, partnerships, or associations, 
 undertaking as a matter of business or for profit the collection of 
 foreign payments of such interest or dividends by means of coupons, 
 checks, or bills of exchange. 
 
 “When necessary to make effective the provisions of this section 
 the name and address of the recipient of income shall be furnished 
 upon demand of the person, corporation, partnership, association, or 
 insurance company paying the income. 
 
 “The provisions of this section shall apply to the calendar year 
 nineteen hundred and seventeen and each calendar year thereafter, 
 but shall not apply to the payment of interest on obligations of the 
 United States. 
 
 “Sec. 29. That in assessing income tax the net income embraced 
 in the return shall also be credited with the amount of any excess 
 profits tax imposed by Act of Congress and assessed for the same 
 calendar or fiscal year upon the taxpayer, and, in the case of a member 
 of a partnership, with his proportionate share of such excess profits 
 tax imposed upon the partnership. 
 
 “Sec. 30. That nothing in section II of the Act approved October 
 third, nineteen hundred and thirteen, entitled ‘An Act to reduce tariff 
 duties and to provide revenue for the Government, and for other 
 purposes/ or in this title, shall be construed as taxing the income of 
 foreign governments received from investments in the United States 
 in stocks, bonds, or other domestic securities, owned by such foreign 
 governments, or from interest on deposits in banks in the United 
 States of moneys belonging to foreign governments. 
 
 “Sec. 31. ( a ) That the term ‘dividends’ as used in this title 
 
 shall be held to mean any distribution made or ordered to be made 
 by a corporation, joint-stock company, association, or insurance com¬ 
 pany, out of its earnings or profits accrued since March first, nineteen 
 hundred and thirteen, and payable to its shareholders, whether in cash 
 or in stock of the corporation, joint-stock company, association, or 
 insurance company, which stock dividend shall be considered in¬ 
 come, to the amount of the earnings or profits so distributed. 
 
 (b) Any distribution made to the shareholders or members of 
 a corporation, joint-stock company, or association, or insurance 
 company, in the year nineteen hundred and seventeen, or sub¬ 
 sequent tax years, shall be deemed to have been made from the most 
 recently accumulated undivided profits or surplus, and shall consti¬ 
 tute a part of the annual income of the distributee for the year in 
 
 57 
 
which received, and shall be taxed to the distributee at the rates 
 prescribed by law for the years in which such profits or surplus 
 were accumulated by the corporation, joint-stock company, asso¬ 
 ciation, or insurance company, but nothing herein shall be construed 
 as taxing any earnings or profits accrued prior to March first, 
 nineteen hundred and thirteen, but such earnings or profits may 
 be distributed in stock dividends or otherwise, exempt from the tax, 
 after the distribution of earnings and profits accrued since March 
 first, nineteen hundred and thirteen, has been made. This sub¬ 
 division shall not apply to any distribution made prior to August 
 sixth, nineteen hundred and seventeen, out of earnings or profits 
 accrued prior to March first, nineteen hundred and thirteen. 
 
 Sec. 32. That premiums paid on life insurance policies covering 
 the lives of officers, employees, or those financially interested in 
 any trade or business conducted by an individual, partnership, 
 corporation, joint-stock company or association, or insurance 
 company, shall not be deducted in computing the net income of 
 such individual, corporation, joint-stock company or association, 
 or insurance company, or in computing the profits of such partner¬ 
 ship for the purposes of subdivision (e) of section nine. 
 
 Sec. 1212. That any amount heretofore withheld by any with¬ 
 holding agent as required by Title I of such Act of September eighth, 
 nineteen hundred and sixteen, on account of the tax imposed upon 
 the income of any individual, a citizen or resident of the United 
 States, for the calendar year nineteen hundred and seventeen, 
 except in the cases covered by subdivision (c) of section nine of such 
 Act, as amended by this Act, shall be released and paid over to such 
 individual, and the entire tax upon the income of such individual 
 for such year shall be assessed and collected in the manner prescribed 
 by such Act as amended by this Act. 
 
 TITLE XIXI.—General Provisions. 
 
 Sec. 1300. That if any clause, sentence, paragraph, or part of 
 this Act shall for any reason be adjudged by any court of competent 
 jurisdiction to be invalid, such judgment shall not affect, impair, or 
 invalidate the remainder of said Act, but shall be confined in its 
 operation to the clause, sentence, paragraph, or part thereof directly 
 involved in the controversy in which such judgment shall have been 
 rendered. 
 
 Sec. 1301. That Title I of the Act entitled “An Act to provide 
 increased revenue to defray the expenses of the increased appro¬ 
 priations for the Army and Navy and the extension of fortifications, 
 and for other purposes,” approved March third, nineteen hundred and 
 seventeen, be, and the same is hereby repealed. 
 
 Sec. 1302. That unless otherwise herein specially provided, this 
 Act shall take effect on the day following its passage. 
 
 58 
 
(Hljp (Enrpnratum ®ruat (Eompatty 
 
 FEDERAL TAX SERVICES. 
 
 INCOME TAX SERVICE. 
 
 The Income Tax Service collects rulings, regulations, opinions and 
 decisions from all Federal official sources, bearing on the administra¬ 
 tion and interpretation of the provisions of the income tax law of 
 September 8, 1916, as amended, including the tax on undistributed 
 profits of corporations, and the war income tax law of 1917. 
 
 WAR TAX SERVICE. 
 
 The War Tax Service similarly collects and reports the rulings, 
 regulations, opinions and decisions on the war profits tax, the war 
 stamp taxes, the capital stock tax, the estate tax, the war tax on 
 facilities furnished by public utilities, the war excise taxes, the war 
 tax on admissions, and the special taxes on occupations. 
 
 SERVICE REPORTS. 
 
 Reports are sent out in each Service containing the exact text 
 of each official formal regulation, ruling, opinion or decision as soon 
 as it is available from official sources, during the year. Reports 
 for each Service are printed on sheets of uniform size, consecutively 
 numbered so that the subscriber knows at a glance if any matter is 
 missing, and punched for insertion in a binder which is furnished 
 with the Service. Promptness is the keynote of the Services. Special 
 arrangements are in operation to print and mail (under first class 
 postage) with the greatest possible speed. The Services compete 
 with the newspapers in speed, but no newspaper competes with the 
 Services in accuracy and completeness. 
 
 THE ANNUAL COMPILATION. 
 
 For the Income Tax Service, at the beginning of each year, a 
 compilation is made of all matters previously issued then in force, 
 so arranged that the rulings, regulations, etc., bearing on any given 
 point may be found in one place. This compilation enables the 
 reader to examine at a glance that for which he would otherwise 
 search through many pages. The compilation contains no repealed 
 or superseded matter. The language of the official documents, 
 without comment or conclusions of others, is used. The matter is 
 arranged under headings and subheadings that follow naturally the 
 arrangement of the law. The compilation, supplemented by the 
 new matter sent out during the year, forms an independent complete 
 annual book of reference. 
 
 59 
 
So far as practical and necessary for convenient use, the War 
 Tax Service will be compiled annually in like manner. 
 
 THE SERVICE BOOKS. 
 
 Each Service is contained in a substantial loose leaf ring binder. 
 The insertion or removal of sheets takes but a minute. All reports 
 are plainly designated so that new matter easily finds its place in 
 the book. An office boy or clerk can attend to the proper insertion 
 of new matter. 
 
 CONTENTS. 
 
 The Income Tax Service is devoted exclusively to the income 
 tax law, amendments thereto and the regulations bearing thereon. 
 
 In the War Tax Service each tax is given a separate section in 
 the book. Within that section appears a copy of the law, followed, 
 in chronological order, by the regulations, rulings, etc., issued since 
 the passage of the respective Acts. Thus the War Tax Service is 
 a combination of several units in one binder, each unit being in effect 
 a complete Service. 
 
 FORMS. 
 
 Each book contains a complete collection of all forms used in the 
 making of returns, and in the assessment, collection, refund and abate¬ 
 ment of the several taxes. 
 
 LIST OF COLLECTION DISTRICTS. 
 
 Each Service contains a complete list of collection districts show¬ 
 ing in detail the territory covered by each district and the name and 
 address of the collector. Another list gives the names, addresses and 
 respective territories of the internal revenue agents. Like all other 
 matter in the Service this is subject to constant revision, new pages 
 being sent out for substitution whenever there is a change of any 
 kind in the information reported. 
 
 RUNNING TABLES OF CONTENTS. 
 
 The Income Tax Service and each unit of the War Tax Service 
 contains a running table of contents of current matter, the last page 
 of which is revised, reprinted, and sent for substitution whenever an 
 additional report is mailed. Thus, by means of this table, the 
 subscriber has before him, at all times, a complete list of all rulings, 
 etc. 
 
 60 
 
INDEXES. 
 
 The Services are fully indexed. The indexes are revised com¬ 
 pletely as occasion requires during the year. The number of un¬ 
 indexed pages in the books is never allowed to grow unduly large; 
 furthermore the contents of such pages may be ascertained quickly 
 by reference to the running tables of contents which, as stated 
 before, are kept constantly revised. 
 
 CROSS REFERENCE. 
 
 Each paragraph printed for either Service has its distinctive 
 number in bold-face type, the numbers being consecutive, in series. 
 Under the bold-face figures on each new sheet sent out appear 
 figures in smaller type which refer to preceding paragraphs treating 
 of the same subject. Thus every paragraph of new matter is at 
 once linked to all paragraphs on the same subject which have pre¬ 
 ceded it. Corresponding forward references to the new paragraphs 
 may be made quickly, thus providing for a complete cross reference 
 to every paragraph in the book at all times. This ingenious device, 
 supplementing the tables of contents and the indexes, makes the 
 information in each book readily accessable. By its use the sub¬ 
 scriber may assure himself in a minimum of time that he has read 
 every ruling, regulation or opinion on a given point. 
 
 AN EXCLUSIVE FEATURE. 
 
 In addition to the formal regulations, informal rulings are repro¬ 
 duced in the Services in the form of correspondence between the 
 Government officials and taxpayers regarding specific questions. 
 Such correspondence is sent us by subscribers from all over the 
 country and in printed exclusively in the Services. Special rulings 
 of this kind are extremely helpful in understanding fully and applying 
 the formal Treasury Decisions. The Services, in this respect, are 
 unique. Such matter is not collected and published in any other 
 medium. 
 
 TERMS OF SUBSCRIPTION. 
 
 All subscriptions are for the calendar year and include the Service 
 binders containing all formal rulings and regulations in force up 
 to the time of subscription. 
 
 The subscription fee to new subscribers is $20 for the year, for 
 each Service; on renewal $15 per annum. 
 
 61 
 
UNIVERSITY OF ILLINOIS-URBANA 
 
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 SPECIAL PRICES IN EFFECT SEPTEMBER 25 , 1917 . 
 
 A special subscription price is made for the remainder of 1917, 
 including all matter issued to date, of $15 for each Service or $30 
 for the two. 
 
 The subscription price from the present time to the end of 1918 
 for each Service is $30. Where both Services are taken the com¬ 
 bination price is $55, for 1917 and 1918. 
 
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 It is to be understood that all subscriptions to the Services are 
 placed on condition that, if after examination of the Service books 
 sent, the subscriber is not fully satisfied with the value of the Services 
 to him, the books may be returned, and payments will be refunded. 
 
 THE CORPORATION TRUST COMPANY. 
 
 1917. 
 
 The Corporation Trust Company, 
 
 37 Wall St., New York City. 
 
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 62