TEST FOR ANNOTTO AND OTHER DYES.

Annotto is a vegetable color much used for coloring oleomargarine and butter. It does not strike a color with fuller's earth, nor do some of the yellow aniline colors which do not belong to the azo dye class.

The test for the detection of these coloring matters is somewhat more complicated than the Geisler test. For its application are required two test tubes about 8 or 9 inches in length and 1 inch in diameter, commercial benzine or gasoline, and a solution of caustic potash of about .5 per cent strength.

Introduce into one of the test tubes a piece of the sample to be tested about the size of a hickory nut. Warm until the fat is melted, best in hot water or steam; then, while the fat is still liquid (not hot), add about 1 ounce of benzine, and shake until the fat is dissolved. Let it stand a few minutes, when a small white residue (consisting of the water, curd, and salt) will settle to the bottom. Pour off the benzine solution from this residue into the other test tube and add to it about one-half ounce of the potash solution. Shake thoroughly and allow to stand for some time. The liquid in the tube will separate into two layers, and if the lower watery layer has any shade of yellow coloring the sample tested was artificially colored. Cotton seed and other oils impart no color to the alkaline solution, their color remaining dissolved in the benzine. Azo coloring matter also remains in the upper layer.

The potash solution can be obtained from a druggist, or made by dissolving a piece of stick potash about one inch in length in a pint of water. It is not necessary that its strength should be abso

lutely exact.

If a sample gives negative results by both tests above described, it may be safely concluded that it is free from artificial coloration. If it responds to either test, or if there is any doubt as to the results obtained, the sample should be forwarded to this office for analysis. The attention of revenue officers is called to the fact that samples of oleomargarine and renovated butter sent in response to circular letter from this office, dated June 30, have been received in very bad condition.

Hereafter, in forwarding samples of this kind in warm weather, it will be best to use tin or glass vessels with screw tops or other means for closing them tightly to prevent leakage of melted fat or of water. This is particularly important in the case of samples of butter, as the content of water may be seriously affected. Ordinary tin cans closed by a cup or cover will not answer. Until such time as proper receptacles can be furnished by this office, revenue officers will be expected to use their judgment in providing them, and are hereby authorized

to incur the expense necessary for their purchase. Send the samples by express, not by mail.

Affidavit concerning samples should be forwarded with letter of transmittal, not inclosed with samples.

ROBT. WILLIAMS, Jr., Acting Commissioner.

(548.)

Bonds for storekeepers, gaugers, and storekeeper-gaugers.

The giving of an additional bond by storekeepers, gaugers, and storekeeper-gaugers does not modify or release the original bond given at the time of qualification.—— Bonds may not be renewed at the will of the principal or the surety, but only by the direction of the Commissioner.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 11, 1902.

SIR: Your letter of the 28th ultimo, in regard to bonds of storekeepers, gaugers, and storekeeper-gaugers, has been received.

The law bearing on the subject may be found in sections 3153, 3153a, 3153d, and 3156 of the Revised Statutes, these sections making provision for the bonds of storekeepers, gaugers, and storekeepergaugers. The law does not provide a method for the release of the surety nor fix the termination of liability on the bond. The liability of the surety can only be terminated by the expiration of the term of service of the officer, or by his death, resignation, or removal.

The giving of the bond as provided in the sections referred to is a necessary part of the qualification of the officer, and the liability of the surety continues during the entire term of service for which he was appointed. (30 Int. Rev. Rec., 197.)

An additional bond may be given and may be accepted and approved by the Commissioner of Internal Revenue, but it does not relieve the surety upon the original bond of the storekeeper, gauger, or storekeeper-gauger given at the time of his original appointment and qualification to office.

The giving of the bond at the time of the appointment is as much a part of the qualification of the storekeeper, gauger, or storekeepergauger as his oath of office; and, as I have said, the liability created by the surety continues during the term of service for which the officer was appointed.

I do not undertake to pass upon the question as affecting surety companies in their right to compel parties for whom they have executed bonds to pay the premium; but, in my opinion, there is no question but that the surety company continues liable during the entire term of service of the officer, regardless of whether the officer has paid the premium for the bond or not.

The giving of an additional bond simply enlarges the amount of security held by the Government for the official conduct of the storekeeper, gauger, or storekeeper-gauger, and does not in any wise modify or release the original bond given at the time of qualification. In volume 3 of the TREASURY DECISIONS for 1900, on page 261, is found Circular No. 576, containing the rules of this office regulating the form and execution of official bonds of storekeepers, gaugers, and storekeeper-gaugers. On the subject of the renewal of bonds it is said:

Official bonds may not be renewed at the will of the principal or surety, but only by direction of the Commissioner, and the substitution of one corporate company for another as surety on a bond will not be permitted, except by direction of the Commissioner, or after the bond has run for a period of four years and a renewal thereof is required by this office.

The question of the tax on undivided profits of banks involved in suit against Collector Treat decided in favor of the Government. The case to be appealed by the bank.-If abatement claims are filed, collection of tax to be postponed pending further instructions.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 12, 1902. SIR: The Mechanics' National Bank has telegraphed this office, under date of the 9th instant, as follows:

Local collector is trying to force us to pay war tax on undivided profits. We are informed that you have agreed to wait decision of Supreme Court in case of New York City banks. Can you not extend St. Louis banks the same courtesy? Please answer by wire, our expense.

I do not find that there has been any assessment made against this bank on account of undivided profits.

In a letter of January 29, 1902, to Collector Treat, New York, he was informed that bankers must return for taxation capital and surplus which include undivided profits. There was an understanding that a test case was to be tried in the courts to decide the question whether undivided profits are included in the term "surplus," and were subject to tax, and the bankers were to make amended return showing the undivided profits. Assessments were to be made and claims for abatement filed, and collection was to be postponed until the decision in the United States circuit court in the test case. (T. D. 464.)

The test case, that of the Leather Manufacturers' National Bank

v. Collector Treat, has been decided in favor of the Government (T. D. 538), but the case is to be appealed.

If the case of the Mechanics' National Bank in your district comes under this ruling, and if claim for abatement has been filed, collection of tax may be postponed until further instructions.

Other like cases may be treated in the same way. Interest will run on the unpaid taxes according to the requirements of the statute (sec. 3185, Rev. Stat.).

Respectfully,

ROBT. WILLIAMS, Jr.,

Acting Commissioner.

Mr. BEN. WESTHUS, Collector Internal Revenue, St. Louis, Mo.

(550.) Oleomargarine.

Officers or agents of the Department of Agriculture will render every possible assistance to officers or agents of the Internal-Revenue Bureau in connection with the manufacture of renovated butter.-List of inspectors of dairy exports and renovated butter factories and markets under the Department of Agriculture.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 14, 1902.

To collectors of internal revenue:

The act of Congress approved May 9, 1902, which, among other things, imposes a tax of one-fourth of 1 cent per pound on renovated butter and a special tax of $50 per annum on manufacturers of that product, assigns to the Secretary of Agriculture various duties concerning the examination of such factories and the product of the Under the general laws, collectors are required to supervise the transactions of manufactories in their districts, including renovated butter factories.

same.

The Secretary of Agriculture has issued instructions to all inspectors, officers, or agents of his Department, requiring them to render every possible assistance to officers or agents of this Bureau in connection with the manufacture of renovated butter.

As the supervision of this business is required to be carried on jointly between the two Departments, collectors will instruct their deputies to confer with and assist the officers of the Agricultural Department intrusted with this work.

A list of inspectors of dairy exports and renovated butter factories and markets under the Department of Agriculture is transmitted herewith.

ROBT. WILLIAMS, Jr., Acting Commissioner.

List of inspectors of dairy exports and renovated butter factories and markets-Dairy division, U. S. Department of Agriculture.

Geo. M. Whitaker, inspector of dairy exports, P. O. box 1332, Boston, Mass. B. F. Van Valkenburgh, inspector of dairy exports, 193 Duane street, New York City.

W. D. McArthur, inspector of dairy exports, 114 California street, San Francisco, Cal.

Wm. D. Collyer, inspector of factories and exports, 210 South Water street, Chicago, Ill.

M. W. Lang, inspector of renovated butter, territory west of the Mississippi River (address, U. S. Department of Agriculture, Washington).

Levi Wells, inspector for renovated butter, territory east of Illinois and Wisconsin (address, U. S. Department of Agriculture, Washington).

(551.) Oleomargarine.

Collectors should forward the following reports without further delay: Form 500, for dealers in oleomargarine taxed at one-fourth cent per pound; Form 501, for dealers in oleomargarine taxed at 10 cents per pound; Form 502, for dealers in adulterated butter.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 14, 1902.

To collectors of internal revenue:

In connection with the qualification of wholesale and retail dealers in oleomargarine taxed at one-fourth of 1 cent and 10 cents per pound, and adulterated butter, under the act of May 9, 1902, you are hereby requested to furnish to this office without delay, if the same have not already been forwarded, the names of all wholesale and retail dealers who have paid special tax as such during the month of June, 1902, for the fiscal year commencing July 1, 1902, and also an estimate of those who will probably pay tax during this month. This information is needed in the preparation of office records.

In complying with the above instructions, returns should be made on Form 500 for dealers in oleomargarine taxed at one-fourth of 1 cent per pound exclusively; Form 501 for oleomargarine taxed at 10 cents per pound, and Form 502 for adulterated butter as outlined in regulations No. 9.

Particular care should be used at all times in preparing these reports. Under no circumstances should dealers in one class of product be reported on forms designed for the reporting of another class of product. Reports which are incorrect in this respect will not be accepted.

In case collectors have not been supplied with Forms 500, 501, and 502, copies will be furnished them upon proper requisition blanks being forwarded to this office.

ROBT. WILLIAMS, Jr., Acting Commissioner