Page:United States Statutes at Large Volume 52.djvu/742

 52 STAT.] 75TH CONG. , 3D SESS.-CH. 439-JUNE 15, 1938 a colon and the following: "P'rovided, That under the provisions of this section insofar as applicable, the Commissioner of Internal Reve- nue may, under rules and regulations to be by him prescribed, sub- ject to the approval of the Secretary of the Treasury, permit the transfer of fortifying spirits containing more than one hundred and fifty-nine degrees proof up to and including one hundred and ninety- two degrees proof by pipe line from registered fruit distilleries and receiving cisterns in such distilleries to storage tanks in the internal- revenue bonded warehouse located on the distillery premises to be warehoused in such storage tanks and transferred by pipe line to the fortification rooms of contiguous wineries when required." SEC. 5. Subdivision (g) of paragraph "Fifth" of section 3244 of the Revised Statutes, as amended (U. S . C., 1934 edition, Supp. III, title 26, sec. 1394 (e) (3)), is amended to read as follows: "(g) Notwithstanding the foregoing provisions of this section, each person making sales of fermented malt liquor or wine to the members, guests, or patrons of bona fide fairs, reunions, picnics, carnivals, or other similar outings, and each fraternal, civic, church, labor, charita- ble, benevolent, or ex-service men's organization making sales of fermented malt liquor or wine on the occasion of any kind of enter- tainment, dance, picnic, bazaar, or festival held by it, if such person or organization is not otherwise engaged in business as a wholesale or retail liquor dealer or as a wholesale or retail malt liquor dealer, shall pay, before any such sales are made and in lieu of the special taxes imposed by subdivision (a) of this paragraph and subdivision (a) of paragraph 'Fourth' of this section (U. S. C., 1934 edition, Supp. III, title 26, sec. 1934 (b) (1)) a special tax of $2 as a retail dealer in malt liquors, if fermented malt liquor only is sold, or a special tax of $2 as a retail dealer in liquors if wine only, or wine and fermented malt liquor only, are sold for each calendar month in which any such sales are made." SEC. 6 . The fourth paragraph of section 605 of the Revenue Act of 1918, approved February 24, 1919 (U. S. C., 1934 edition, title 26, sec. 1151 (b)), is amended to read as follows: "The taxes imposed by the first paragraph of this section shall not attach to cordials or liqueurs on which a tax is imposed and paid under sections 611 or 613 of this Act, as amended, 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 a(ddition of coloring or flavoring matter or any other substance than pure water and if not reduced below ninety proof; nor to blends made exclusively of two or more pure fruit brandies distilled from the same kind of fruit, aged in wood for a period not less than two years and without the addition of coloring or flavoring matter or any other substance than pure water and if not reduced below ninety proof: Provi/cl-, That such blended whiskies and blended fruit brandies shall be exempt from tax under the first paragraph of this section only when compounded under the immediate supervision of a revenue officer, in such tanks and under such conditions and supervision as the Commissioner, with the approval of the Secretary, may prescribe." SEO. 7 . The second paragraph added to section 605 of the Revenue Act of 1918. as amended, by section 319 (b) of the Liquor Tax Admin- istration Act (U. S. C., 1934 edition, Supp. III, title 26, sec. 1151 (f)) is aiienuded to read as follows: "Thle mallnufacture of vermouth with fortified sweet wine on bonded winery premises shall not be deemed to be rectification with the umening- of paragraph 'Third' of section 3244 of the Revised Statutes, if distilled spirits other than necessary in the production of approved 701 Transfer of fortify- ing spirits from regis- tered fruit distilleries to storage tanks by pipe line. R. S. 53244. 49 Stat. 1954. 26 U. S. C., Supp. III, § 1394 (e) (3). Special rates on sales at fairs, etc., if organizations, etc., not otherwise engaged in liquor business. 49 Stat. 1953. 26 U. S. C., Supp. III, § 1394 (b) (1). 40 Stat. 1108 . 26U.S . C . 1151 (b). Tax-paid cordials, liqueurs, etc., exempt from additional bever- age tax. Blending, etc., of wines and whiskies. Blends of fruit bran- dies distilled from same kind of fruit. Protiso. Condition. 49 Stat. 1951. 26 U. S. C., Supp. III, § 1151 (f). Vermouth manufac- tured with fortified sweet wine on bonded premises.

�