OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., January 28, 1918. To collectors of internal revenue and others concerned: On account of increased cost of labor and materials, the contractor for furnishing Alexander's improved wantage rod has found it neces- sary to increase the price to $3.50 each, which, until further notice will be the price of the rod to all persons in the Internal-Revenue Applications for the rod by persons in the service must be addressed to the Commissioner of Internal Revenue, and at the same time the The post-office address of the intending purchaser should be Persons not connected with the Internal-Revenue Service who Collectors will be furnished with copies hereof for distribution to gauging officers in their respective districts, and will give the information herein contained as wide a publicity as possible, as any deviation from the above instructions may result in delay in filling orders. DANIEL C. ROPER, Commissioner of Internal Revenue. (T. D. 2641.) Denatured alcohol. Alcohol produced on or after October 4, 1917, in Porto Rico may be brought into the United States and withdrawn for denaturation without payment of internalrevenue tax under section 15 of the food-control act and Title III of the act of October 3, 1917. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., January 28, 1918. To collectors of internal revenue and others concerned: Section 15 of the act of August 10, 1917, commonly known as the food-control act, prohibits the importation of distilled spirits into the United States. It is also provided by section 301 of the act to defray war expenses, approved October 3, 1917, that no distilled spirits produced after the passage of the act shall be imported into the United States from Porto Rico, but this section is by the terms. thereof made inapplicable to distilled 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. In an opinion dated the 20th ultimo, the Attorney General reaches the conclusion that The importation of all distilled spirits produced prior to the passage of the warrevenue act of October 3, 1917, is absolutely prohibited, regardless of whether, if imported, it would be taxable or not. The Attorney General also advises that Alcohol may be brought into the United States from Porto Rico free of duty, but under such rules, regulations, and bonds as the Secretary of the Treasury may prescribe and may then be withdrawn free of tax for denaturation for any of the purposes for which domestic alcohol may be withdrawn free of tax from a distillery or distillery warehouse, provided such Porto Rican alcohol has been produced since the passage of the war-revenue act. Regulations for the withdrawal of alcohol brought from Porto Rico for denaturation were contained in T. D. 2575. In view of the opinion of the Attorney General, it is now held that such regulations shall be considered applicable to alcohol produced in Porto Rico on 38680°-18-VOL 20- -2 or after October 4, 1917, only. They are not applicable to alcohol produced in Porto Rico before that time. Furthermore, it is now concluded that the basis for computing the tax laid down in T. D 2575-viz, triple the amount of tax-works unnecessary hardship, and it is therefore held that the bonds to be given shall be in a penal sum not less than the actual amount of the tax at the rate of $2.20 per proof gallon, and in no case less than $5,000, except that in the case of alcohol withdrawn by a scientific or educational institution under the provisions of section 3297, Revised Statutes, the bonds shall be for a penal sum of not less than double the amount of the tax at the rate of $2.20 per gallon. The bonds shall continue to be conditioned for the payment of tax at the rate of $3.20 per gallon even where the penal sum is fixed on the basis of $2.20 per gallon only, since the loss or irregular disposition of the entire amount covered by a bond is practically impossible, and a penal sum based upon the rate of $2.20 per gallon will be sufficient to cover any shortage that may reasonably be anticipated at the higher rate. Approved: W. G. MCADOO, DANIEL C. ROPER, Commissioner of Internal Revenue. Secretary of the Treasury. (T. D. 2642.) Distilled spirits. Regulation governing the use of food materials in the production of distilled spirits under the act of August 10, 1917. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., January 28, 1918. To collectors of internal revenue, storekeeper-gaugers, distillers, and others concerned: Your attention is called to the following: PROMULGATED BY THE SECRETARY OF THE TREASURY UNDER AUTHORITY OF THE FOOD-CONTROL ACT OF AUGUST 10, 1917, AND AN EXECUTIVE ORDER MADE BY THE PRESIDENT OF THE UNITED STATES ON SEPTEMBER 2, 1917. 1. On or after January 1, 1918, no grain other than corn of a quality inferior to the quality of Federal grade number six corn shall be used in the production of distilled spirits for any purpose whatsoever; provided, however, that malted barley or rye that is required for conversion of the starch, may be used; and provided further that with the written consent of the Commissioner of Internal Revenue corn of any quality may be used in the manufacture of yeast and the production of distilled spirits connected there with. Any violation of this regulation will subject the offender to the |